{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Swaps usage for up to 10% of assets, Emerging Markets exposure, Concentrated benchmark",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the MSCI AC Far East ex Japan Index primarily through physical full replication of underlying equities. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, which are derivative instruments. The KIID and PRIIPs documents confirm that derivatives are used not only for efficient portfolio management but also for investment purposes, indicating inherent derivative exposure. The Fund also engages in securities lending up to 25% of assets, adding to complexity. The benchmark is concentrated, with a small number of securities representing a significant portion of the index, and the Fund invests in emerging markets, which are inherently more volatile and less liquid. The risk profile is medium-high (5/7), with explicit counterparty risk and derivatives risk disclosures. There is no leverage or inverse exposure, and the replication method is physical, but the presence of swap usage and derivative exposure for investment purposes triggers the MiFID II complex classification. The Fund is UCITS compliant, but the use of swaps and derivatives beyond risk management, combined with emerging market and concentrated index risks, means the product is not straightforward for retail investors to fully understand. No capital protection or structured features are present. Costs are standard with no performance fees, but derivative-related costs exist. Overall, the Fund\u2019s complexity arises mainly from its partial synthetic exposure via swaps and the nature of its underlying markets and index concentration, justifying a 'complex' classification under MiFID II."
}