{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI Emerging Markets Small Cap Screened UCITS ETF",
    "investment_objective": "Track the MSCI Emerging Markets Small Cap Universal Screens Index with ESG integration",
    "primary_asset_class": "Equity",
    "geographic_focus": "Emerging Markets",
    "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)",
        "Counterparty risk disclosed",
        "Emerging markets exposure with higher volatility and liquidity risk",
        "Securities lending up to 30% of assets (not expected to exceed 25%)",
        "High concentration in benchmark",
        "Use of derivatives for efficient portfolio management and investment purposes"
    ],
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS ETF investing primarily in emerging market small cap equities with ESG screening. It uses physical replication primarily but may invest up to 10% of assets in total return swaps and contracts for difference, with expected usage not exceeding 5%. The KIID and PRIIPs documents disclose counterparty risk related to derivatives and swaps, and the Fund may engage in securities lending up to 30% of assets. The Fund is not leveraged and does not use inverse or amplified exposure. The risk profile is high (category 6 in KIID) due to emerging market volatility and derivative usage. The PRIIPs KID shows a medium risk rating (4/7) but notes investment leverage risk from derivatives. The presence of total return swaps and counterparty risk, even at limited levels, triggers MiFID II complexity classification. The Fund\u2019s underlying assets are liquid equities, but the use of derivatives and swaps for gaining exposure and efficient management, plus securities lending, add complexity. No capital protection or structured features are present. The replication is mostly physical but with some synthetic elements via swaps. Costs are straightforward with no performance fees but include derivative-related costs. Overall, the Fund\u2019s partial use of swaps and counterparty risk exposure, combined with emerging market and derivative risks, lead to a MiFID II classification as complex despite no leverage or inverse exposure.",
    "risk_level_assessment": "The Fund\u2019s stated risk profile is high (6/7) in the KIID due to emerging market volatility and derivative risks, while the PRIIPs KID rates it medium risk (4/7). The complexity arises mainly from derivative and swap usage and counterparty risk rather than leverage or structured features. This aligns with the MiFID II complexity assessment that flags derivative and swap usage as complexity drivers even if leverage is absent."
}