{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI EUROPE CLIMATE PARIS ALIGNED UCITS ETF",
    "investment_objective": "Track as closely as possible the returns of the MSCI Europe Climate Paris Aligned Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "Europe (15 developed markets countries)",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Swaps usage",
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS ETF investing primarily in equities of European companies aligned with the MSCI Europe Climate Paris Aligned Index. It uses physical replication as its main method, investing directly in shares of the index constituents. However, the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, and up to 10% in other funds. The use of total return swaps, even if limited, introduces synthetic elements and counterparty risk, which under MiFID II rules classifies the Fund as complex. The derivatives are not used for leverage or amplification but as part of gaining exposure when direct investment is not possible or practical. The Fund does not employ leverage, inverse or amplified exposure. The risk profile is medium to high (category 4-6 in KIID and PRIIPs), reflecting market volatility rather than structural complexity. The Fund discloses counterparty risk and derivative risk prominently. Costs are straightforward with no performance fees, but swap usage implies additional derivative-related costs. The monthly factsheet confirms physical replication as the primary method and swap usage as a minor but inherent part of the strategy. No capital protection or structured features are present. The complexity arises mainly from the partial use of swaps and derivative instruments, which under MiFID II mandates classification as complex, despite the Fund\u2019s physical replication and straightforward equity exposure otherwise."
}