{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS (Lux) Fund Solutions - MSCI World UCITS ETF",
    "investment_objective": "Passive replication of MSCI World Index (Net Return) via direct investments in all or substantially all component securities and/or derivatives to gain exposure or efficiencies",
    "primary_asset_class": "Equity",
    "geographic_focus": "Global developed markets (23 countries including US, Japan, UK, Canada, etc.)",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives (swaps) for replication efficiency and counterparty risk",
    "classification": "complex",
    "supporting_data": "The KIID and PRIIPs KID confirm the fund primarily uses physical replication but may use derivatives, including OTC swaps, where direct replication is not possible or to gain efficiencies. The use of OTC derivatives introduces counterparty risk, mitigated by collateral policies. The factsheet confirms physical full replication as the main method but does not exclude swap usage. There is no leverage or inverse exposure. The risk profile is medium to high (risk category 4 in PRIIPs KID, 6 in KIID) due to equity volatility, not due to leverage or complex structured products. The presence of OTC swaps and counterparty risk, even if limited and mitigated, triggers MiFID II complexity classification. No capital protection or structured features are present. Costs are straightforward with no performance fees. The fund is UCITS compliant. The complexity arises mainly from the use of OTC derivatives (swaps) and associated counterparty risk, which may not be easily understood by retail investors, despite the fund's straightforward equity index tracking objective and physical replication focus.",
    "risk_level_assessment": "The fund's stated risk profile is medium to high due to equity market volatility (risk category 4-6). This aligns with the underlying asset class risk rather than complexity from leverage or structured features. However, the use of OTC derivatives and counterparty risk elevates the complexity classification under MiFID II."
}