{
    "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 synthetic replication or swap usage indicated. The fund is UCITS compliant and does not employ leverage or inverse strategies. Derivatives are only used for risk management and currency hedging, not as an inherent part of the investment strategy, so derivative usage is marked false. 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 KID, including risks of principal loss, liquidity risk, and conversion risk. The PRIIPs KID also includes a comprehension warning stating the product is 'not simple and may be difficult to understand,' reinforcing the complexity classification. The fund\u2019s risk rating is moderate (5 in KIID, 3 in PRIIPs), reflecting the complexity and risk profile of AT1 bonds. No leverage, swaps, or synthetic replication are used, but the inherent complexity of the underlying contingent convertible bonds drives the MiFID II complex classification. The fund uses physical replication, invests in a niche, complex asset class (AT1 bonds), and has significant credit, liquidity, and contingent risk factors that retail investors may find difficult to understand. No capital protection or structured features beyond the contingent bond structure are present. Costs are straightforward with no performance fees or swap fees. Overall, the complexity arises solely from the nature of the underlying assets (contingent convertible bonds), not from the fund structure or replication method."
}