{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI WORLD UCITS ETF",
    "investment_objective": "Track as closely as possible the returns of the MSCI World Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "Global developed markets",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Swaps usage, Optimisation technique, Securities lending",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the MSCI World Index primarily through physical replication with optimisation sampling. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, and up to 10% in other funds, including HSBC funds. The use of total return swaps and derivatives is explicitly mentioned, although derivatives are stated to be used mainly for efficient portfolio management and risk/cost management, not for leverage. The Fund also engages in securities lending up to 30% of assets. The risk profile is high (category 6 in KIID), reflecting high price fluctuations. The PRIIPs KID shows a medium risk rating (4/7) but confirms derivative use and counterparty risk. The monthly factsheet confirms physical replication by sampling but also confirms up to 10% exposure to total return swaps and contracts for difference. The presence of swaps, even if limited, and derivative instruments for investment purposes, triggers MiFID II complexity classification. There is no leverage or inverse exposure. The Fund is UCITS compliant and invests in liquid, large and mid-cap equities globally. The complexity arises mainly from the use of swaps and derivatives, securities lending, and the optimisation replication technique, which may cause tracking error and counterparty risk. No capital protection or structured features are present. Costs are straightforward with no performance fees but include derivative-related costs. Overall, the Fund is complex under MiFID II due to swap usage and derivative exposure inherent in the investment strategy, despite physical replication being the primary method."
}