{
    "type": "ETF",
    "ucits": true,
    "fund_name": "WisdomTree AT1 CoCo Bond UCITS ETF - USD",
    "investment_objective": "Track the iBoxx Contingent Convertible Liquid Developed Europe AT1 Index, which reflects Additional Tier 1 (AT1) contingent convertible bonds (CoCos) issued by European developed market financial institutions.",
    "primary_asset_class": "Fixed Income - Contingent Convertible Bonds (CoCos)",
    "geographic_focus": "Developed Europe",
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Contingent Convertible Bonds",
        "Complex underlying asset structure",
        "Discretionary coupons and write-down features",
        "Potential illiquidity and untested market behavior in stress",
        "Counterparty risk from efficient portfolio management techniques (repo, stock lending)"
    ],
    "classification": "complex",
    "supporting_data": "The ETF physically replicates the iBoxx Contingent Convertible Liquid Developed Europe AT1 Index using a representative sampling strategy, investing directly in CoCo bonds and related securities. There is no indication of synthetic replication or use of swaps or derivatives as part of the core strategy, and no leverage or inverse exposure is present. The fund is UCITS compliant and has a moderate risk rating of 5 out of 7. However, the underlying assets are contingent convertible bonds (CoCos), which are hybrid debt instruments with complex features such as discretionary coupons, principal write-down or conversion to equity upon trigger events, no stated maturity, and potential illiquidity especially in stressed markets. The fund's risk disclosures highlight significant complexity and risk related to the nature of CoCos, including loss absorption mechanisms that can lead to capital loss even when equity holders do not lose capital. The PRIIPs KID confirms the product is intended for informed investors with specific knowledge, reflecting the complexity of the underlying assets. No synthetic replication or leverage is used, but the complexity arises from the underlying asset class itself, which is difficult for retail investors to understand and involves significant risk factors including counterparty and liquidity risks. The fund uses efficient portfolio management techniques such as repurchase agreements and stock lending, which introduce some counterparty risk but do not imply synthetic replication. The risk profile and disclosures, combined with the complex nature of CoCos, lead to a MiFID II classification of 'complex' despite the absence of derivatives or leverage in the fund structure."
}