{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Convertible Bonds, Stratified Sampling, Currency Hedging",
    "classification": "complex",
    "supporting_data": "The SPDR FTSE Global Convertible Bond UCITS ETF tracks a global convertible bond index using a stratified sampling physical replication method without synthetic replication or swap usage. The Fund is UCITS compliant and does not employ leverage or inverse strategies. Derivatives are used only for efficient portfolio management and currency hedging, not as an inherent part of the investment strategy, so derivative exposure is minimal and risk-managed. However, the Fund invests primarily in convertible bonds, including mandatory and perpetual convertibles, which are complex hybrid instruments combining debt and equity features. The underlying assets include bonds with embedded options and credit risk, which are less liquid and harder to value than plain vanilla bonds or equities. The risk profile is medium-high (risk category 5 in the KIID), reflecting the complexity and volatility of convertible bonds. There is no use of funded or unfunded swaps, no leverage, and no capital protection features. The complexity arises mainly from the nature of the underlying assets (convertible bonds) and the stratified sampling approach to replicate a complex index. The PRIIPs KID confirms a medium-low risk rating (3/7) but also highlights currency hedging and the use of derivatives for portfolio efficiency, not for speculative purposes. The factsheet confirms no synthetic replication or swap usage, a TER of 0.55%, and a large diversified portfolio of 323 holdings, mostly convertible bonds with varying credit qualities. The complexity classification is driven by the convertible bond exposure and the hybrid nature of the underlying assets, which may be difficult for retail investors to fully understand, despite the absence of leverage or synthetic structures."
}