{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Invesco AT1 Capital Bond UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "Contingent Convertible Bonds",
    "classification": "complex",
    "supporting_data": "The ETF physically replicates the iBoxx USD Contingent Convertible Liquid Developed Market AT1 (8% Issuer Cap) Index by holding the underlying contingent convertible bonds (AT1 bonds) directly, with no use of synthetic replication or swap agreements. The fund is UCITS compliant and does not employ leverage or inverse exposure. Derivatives may be used only for risk management or cost reduction, not as a core part of the investment strategy, so derivative exposure is minimal and not inherent to the fund's strategy. However, the fund invests exclusively in contingent convertible bonds, which are complex financial instruments with embedded contingent write-down or conversion features triggered by issuer capital events. This complexity is explicitly noted in the KIID and PRIIPs documents, including risks related to conversion triggers, liquidity, and default risk. The PRIIPs KID includes a comprehension warning stating the product is 'not simple and may be difficult to understand,' reinforcing the complexity classification. The risk profile is moderate (risk category 5 in KIID, 3 in PRIIPs), reflecting the complexity and risk of the underlying AT1 bonds rather than leverage or derivatives. No synthetic replication, swaps, or leverage are used, but the inherent complexity of the underlying contingent convertible bonds drives the MiFID II complex classification. The fund also discloses securities lending risks and concentration risks but no capital protection or structured features. Costs are straightforward with no performance fees or swap fees. Overall, the complexity arises from the nature of the underlying assets (AT1 contingent convertible bonds) rather than the fund structure or replication method."
}