{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI AC ASIA PACIFIC EX JAPAN CLIMATE PARIS ALIGNED UCITS ETF",
    "investment_objective": "Track as closely as possible the returns of the MSCI AC Asia Pacific ex Japan Climate Paris Aligned Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "Asia Pacific ex Japan (developed and 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",
        "Exposure to emerging markets equities",
        "Securities lending up to 30% of assets",
        "Potential indirect exposure to China A-shares via Access Products or funds"
    ],
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS ETF physically replicating the MSCI AC Asia Pacific ex Japan Climate Paris Aligned Index, investing primarily in equities. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, indicating synthetic elements in replication. The Fund also uses derivatives for efficient portfolio management but not as an inherent strategy driver, so derivatives are marked false. There is no leverage or inverse exposure. The Fund engages in securities lending up to 30%, which adds complexity. The underlying index includes emerging markets and China A-shares, which can be less liquid and more volatile. The Risk and Reward Indicator is 6 out of 7 in the KIID, reflecting higher risk and complexity. The PRIIPs KID confirms medium risk (4/7) but highlights investment leverage risk due to derivatives usage. The monthly factsheet confirms physical full replication but acknowledges up to 10% total return swaps usage and derivative use for risk management. No capital protection or structured features are present. The presence of total return swaps and counterparty risk, combined with emerging market exposure and securities lending, drives the MiFID II classification as complex despite the physical replication and absence of leverage or inverse strategies."
}