{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS (Irl) Fund Solutions plc - UBS CMCI Commodity Carry SF UCITS ETF",
    "investment_objective": "Capital appreciation by tracking the UBS CM-BCOM Outperformance Strategy Index ex-Precious Metals 2.5 Leveraged Net of Cost Total Return",
    "primary_asset_class": "Commodity derivatives",
    "geographic_sector_focus": "Global commodities excluding precious metals",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via total return swaps",
        "Leverage embedded in the index (2.5x leveraged exposure)",
        "Counterparty risk due to swap with UBS AG",
        "Exposure to complex commodity indices with rolling futures and carry strategies",
        "Use of collateralized swap structure"
    ],
    "classification": "complex",
    "supporting_data": "The Fund uses synthetic replication through a fully funded total return swap with UBS AG as counterparty, confirmed by the KIID, PRIIPs KID, and Fact Sheet. The Fund tracks a 2.5x leveraged commodity index that provides exposure to the difference in performance of two commodity indices excluding precious metals, employing a daily rolling futures methodology to optimize roll yields and reduce carry costs. The Fund's performance depends on the swap counterparty's ability to perform, exposing investors to counterparty risk. The index's leverage and the use of derivatives as the primary investment instruments are key complexity drivers. The Fund is UCITS compliant but the synthetic swap structure, embedded leverage, and complex underlying index strategy make it complex under MiFID II. The risk profile is moderate to high (Risk category 4 in KIID, 3 in PRIIPs KID), reflecting volatility and counterparty risk. Costs include ongoing charges and swap-related costs, though no performance fees. The PRIIPs KID classifies the product as medium-low risk but notes currency and operational risks. The Fund is not capital protected and may experience significant volatility and losses. The synthetic replication and leverage embedded in the index, combined with counterparty exposure, are the main reasons for classification as complex under MiFID II.",
    "risk_level_assessment": "The Fund's stated risk category is 4 (medium risk) in the KIID and 3 (medium-low) in the PRIIPs KID, reflecting moderate volatility and counterparty risk. Despite a moderate risk rating, the use of leverage and synthetic replication with counterparty exposure elevates complexity under MiFID II rules."
}