{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The iShares J.P. Morgan $ EM Bond UCITS ETF GBP Hedged (Dist) aims to track the J.P. Morgan EMBI Global Core Index, investing primarily in US Dollar denominated emerging market fixed income securities, including sovereign and quasi-sovereign bonds. The fund uses physical replication with a sampled methodology, directly investing in underlying bonds rather than synthetic replication or swap-based structures. The KIID and PRIIPs KID documents confirm the use of financial derivative instruments only for currency hedging (FX forwards), not as an inherent part of the investment strategy, thus derivatives are used for risk management rather than exposure. There is no mention of funded or unfunded swaps, total return swaps, or counterparty exposure related to synthetic replication. The fund is unleveraged, with no leverage or inverse exposure. The risk profile is moderate (risk level 5 in KIID, 3 out of 7 in PRIIPs KID), reflecting credit risk, interest rate risk, and emerging market liquidity risk, but not complexity from derivatives or leverage. Costs are straightforward with a 0.50% ongoing charge and no performance fees or swap fees. The monthly factsheet confirms physical bond holdings with a large number of underlying securities (645), diversified credit ratings, and no indication of complex structured products or contingent convertible bonds. The hedging strategy uses FX forwards solely for currency risk mitigation, which does not trigger complexity classification under MiFID II. There are no capital protection features or structured return formulas. No PRIIPs comprehension warnings or complexity flags are present. Overall, the fund exhibits a clear, linear relationship to the underlying index performance, invests directly in liquid, transparent fixed income securities, and uses derivatives only for hedging, leading to a non-complex classification under MiFID II."
}