{
    "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 for up to 10% of assets, optimisation technique, securities lending",
    "classification": "complex",
    "supporting_data": "The Fund primarily invests in equities of large and mid-cap companies globally, aiming to track the MSCI World Index. It uses a physical sampling replication method with an optimisation technique to minimise tracking error and trading costs. However, the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, and up to 10% in other funds. The KIID and PRIIPs documents explicitly mention swap usage and counterparty risk, which are complexity indicators under MiFID II. Although derivatives are used primarily for efficient portfolio management and risk purposes, the presence of total return swaps (even if limited to 10%) and securities lending (up to 30%, with a max expected of 25%) introduces counterparty risk and complexity. The Fund is UCITS compliant and does not employ leverage or inverse strategies. The risk profile is medium to high (category 4-6 depending on document), reflecting market volatility rather than leverage. The PRIIPs KID risk indicator is 4/7, lower than the KIID's 6/7, but both acknowledge counterparty and derivative risks. The monthly factsheet confirms physical replication with sampling and swap usage limited to 10%, no leverage, and no capital protection features. The presence of swaps and counterparty risk, even if limited, triggers the MiFID II complex classification. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap fees and securities lending are noted. Overall, the Fund\u2019s complexity arises from the use of total return swaps and derivative instruments for exposure and optimisation, which may not be easily understood by retail investors, fulfilling MiFID II complexity criteria despite physical replication and no leverage."
}