{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC DEVELOPED WORLD SUSTAINABLE EQUITY UCITS ETF",
    "investment_objective": "Track the FTSE Developed ESG Low Carbon Select Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "Developed markets globally, primarily US, Japan, UK, Canada, Germany, Australia, France, Switzerland, Netherlands, South Korea",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps usage",
        "Derivative exposure for investment purposes",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The Fund aims to physically replicate the FTSE Developed ESG Low Carbon Select Index, investing primarily in equities. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, with derivative use also for efficient portfolio management and investment purposes. The KIID and PRIIPs documents explicitly mention counterparty risk and derivatives risk, including total return swaps and contracts for difference. The Fund is UCITS compliant and uses physical replication as the primary method, but the presence of swap agreements and derivative instruments for investment purposes (not just risk management) triggers complexity under MiFID II. There is no leverage or inverse exposure. The risk profile is high (category 6 in KIID), but the PRIIPs KID shows a medium risk (4/7), reflecting moderate risk from market fluctuations and derivative use. The Fund does not employ leverage, nor does it have capital protection or structured features. The presence of swap usage, even limited to 10%, and derivative exposure for investment purposes, plus counterparty risk disclosures, classify this ETF as complex under MiFID II. The underlying assets are liquid equities, and the index is a standard ESG low carbon equity index without complex structured products. No capital protection or contingent bonds are involved. Costs are straightforward with no performance fees, but derivative-related costs exist. The PRIIPs KID does not carry a specific comprehension warning but does highlight derivative and counterparty risks. Overall, the complexity arises mainly from the use of swaps and derivatives for investment exposure, not just risk management, and the associated counterparty risk.",
    "risk_level_assessment": "The KIID classifies the Fund as risk category 6 (high risk), reflecting price volatility and derivative exposure. The PRIIPs KID rates it as 4/7 (medium risk), indicating moderate risk. The risk profile aligns with the complexity classification due to derivative use and counterparty risk, despite physical replication being the primary method."
}