{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The iShares Japan Govt Bond UCITS ETF GBP Hedged (Acc) aims to track the Bloomberg Japan Treasury Index by investing primarily in fixed income securities issued by the Japanese government. The fund uses physical replication techniques, including optimising techniques such as strategic selection of securities within the index or similar fixed income securities, but does not rely on synthetic replication or swap agreements. The document mentions the use of financial derivative instruments (FDIs) only for direct investment purposes and currency hedging (FX forwards) to reduce currency risk, which is standard practice and not considered inherent derivative exposure for complexity classification. There is no mention of funded or unfunded swaps, total return swaps, or counterparty exposure related to swaps. The fund is UCITS compliant, has no leverage or inverse exposure, and does not invest in complex underlying assets such as contingent convertible bonds or structured products. The risk profile is moderate (risk level 3), reflecting typical fixed income risks such as credit risk, interest rate risk, and liquidity risk, but no elevated complexity risks. Charges are straightforward with a low ongoing charge of 0.09%, no performance fees, and securities lending revenue sharing disclosed transparently. No capital protection or structured features are present. The fund\u2019s hedging strategy uses FX forwards, which is a common risk management tool and does not trigger complexity. Overall, the fund exhibits a clear, linear relationship to the underlying index performance, invests directly in liquid government bonds, and does not use synthetic replication or leverage. Therefore, under MiFID II criteria, it is classified as non-complex."
}