{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication",
        "Total return swap",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The UBS MSCI ACWI SF UCITS ETF uses synthetic replication via a fully funded total return swap with UBS AG, London Branch as counterparty. The Fund does not invest directly in the underlying securities to replicate the MSCI ACWI Net Total Return Index but swaps the index performance with UBS in exchange for the performance of a basket of securities held by the Fund. This introduces counterparty risk, explicitly disclosed in the KIID and fact sheet. The Fund is UCITS compliant but the use of total return swaps and derivative instruments as an inherent part of the investment strategy classifies it as complex under MiFID II. There is no leverage or inverse exposure, and the risk profile in the KIID is medium to high (category 6), reflecting volatility and counterparty risk. Costs are straightforward with no performance fees but include derivative-related costs. The PRIIPs KID confirms the synthetic swap structure and medium risk rating (4/7), with no comprehension warning but highlights counterparty risk. The fact sheet confirms the fully funded swap and collateralization with G10 government bonds and supranational bonds, but the presence of swap counterparty risk and synthetic replication are key complexity drivers. There is no capital protection or structured features, and the underlying index is broad and liquid, but the synthetic structure and counterparty exposure make the ETF complex under MiFID II rules."
}