{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI WORLD CLIMATE PARIS ALIGNED UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "inverse": false,
    "derivatives": false,
    "swaps": true,
    "complex_factors": "Swaps",
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS ETF aiming to track the MSCI World Climate Paris Aligned Index using primarily physical replication of underlying equities. However, it 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, and contracts for difference indicates synthetic elements in the strategy. The Fund also engages in securities lending up to 30% of assets, which adds operational complexity. The risk profile is high (category 6 in KIID), reflecting volatility and derivative usage. The PRIIPs KID classifies the risk as medium (4/7) but notes investment leverage risk due to derivatives. The Fund does not employ leverage or inverse strategies, and the replication method is primarily physical, but the presence of swap usage for gaining exposure to index constituents or managing tracking error triggers a complex classification under MiFID II. There is no capital protection or structured product features. The underlying assets are equities from developed markets, liquid and transparent, but the derivative overlay and counterparty risk from swaps are complexity drivers. The Fund is UCITS compliant, which limits complexity but does not eliminate it due to swap usage. No contingent bonds or structured products are held. The complexity arises mainly from the use of total return swaps and contracts for difference, which are derivative instruments inherently complex under MiFID II. The Fund\u2019s risk disclosures include counterparty risk and derivative risk warnings. Costs are straightforward with no performance fees but include swap-related costs. Overall, despite physical replication predominance, the presence of swap usage mandates classification as complex."
}