{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI Emerging Markets Value Screened UCITS ETF",
    "investment_objective": "Track the MSCI Emerging Markets Value Select Screens Advanced Index, focusing on companies with lower market valuations and ESG integration",
    "primary_asset_class": "Equity",
    "geographic_focus": "Emerging Markets worldwide",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Use of total return swaps up to 10% of assets (not exceeding 5% expected)",
        "Exposure to emerging markets equities with ESG and value factor screening",
        "Potential securities lending up to 30% (expected max 25%)",
        "High concentration risk in benchmark",
        "Use of derivatives for efficient portfolio management and limited investment purposes"
    ],
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS ETF physically replicating the MSCI Emerging Markets Value Select Screens Advanced Index, investing primarily in emerging market equities with ESG and value factor criteria. The Fund may invest up to 10% of its assets in total return swaps and contracts for difference, although expected not to exceed 5%. This swap usage, even if limited, introduces counterparty risk and derivative complexity. The Fund also engages in securities lending up to 30% of assets (expected max 25%), which adds operational and collateral risks. The Risk and Reward Indicator is high (category 6), reflecting volatility and complexity. The Fund does not employ leverage or inverse strategies. Derivatives are used mainly for efficient portfolio management and limited investment purposes, so 'derivatives' is marked false per instructions. However, the presence of total return swaps (a form of synthetic exposure) triggers the classification as complex under MiFID II. The underlying assets are emerging market equities, which are less liquid and more volatile, adding to complexity. The benchmark is highly concentrated, increasing tracking risk. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap and securities lending fees may apply. The PRIIPs KID shows a medium risk indicator (4/7), but the KIID risk indicator is higher (6/7), reflecting the underlying market and derivative risks. No leverage or inverse exposure is present. Overall, the limited but present use of total return swaps and derivative instruments for investment purposes, combined with emerging market exposure and securities lending, leads to a MiFID II classification of complex.",
    "risk_level_assessment": "The Fund's stated risk profile is high (category 6 out of 7), consistent with the volatility of emerging markets and derivative usage. The PRIIPs KID shows a medium risk (4/7), reflecting a more conservative risk measure. The presence of counterparty risk, derivative exposure via swaps, and securities lending contribute to elevated risk and complexity, justifying the complex classification despite the absence of leverage or inverse strategies."
}