{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS MSCI United Kingdom UCITS ETF, class GBP acc",
    "investment_objective": "Passive replication of MSCI United Kingdom Index (Net Return) via direct investments and/or derivatives for efficiency",
    "primary_asset_class": "Equity",
    "geographic_focus": "United Kingdom",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives for efficient index exposure and securities lending; counterparty risk mitigated by collateral policy",
    "classification": "complex",
    "supporting_data": "The fund primarily uses physical replication (full replication of MSCI United Kingdom Index) as confirmed by the factsheet. However, the KIID and PRIIPs KID explicitly state that derivatives, including OTC derivatives and swaps, may be used where direct replication is not possible or to generate efficiencies. The use of OTC derivatives introduces counterparty risk, although mitigated by collateral policies. The fund may also engage in securities lending. There is no leverage or inverse exposure. The risk profile is medium to high (risk category 5 in KIID, 4 in PRIIPs KID), reflecting equity market volatility rather than structural complexity. The fund is UCITS compliant. The presence of swap agreements and OTC derivatives, even if used for efficiency rather than leverage, triggers MiFID II complexity classification. No capital protection or structured features are present. Costs are straightforward with no performance fees, and ongoing charges are low (0.20%). The underlying assets are liquid UK equities, with no complex bonds or contingent convertible bonds. The complexity arises mainly from the use of OTC derivatives and counterparty risk exposure, which may not be fully transparent or easily understood by retail investors. The PRIIPs KID does not carry a comprehension warning but shows a medium risk level and highlights counterparty risk. The factsheet confirms physical replication as primary but acknowledges derivative use for efficiency. Therefore, despite the physical replication, the presence of swaps and OTC derivatives for index exposure efficiency leads to classification as complex under MiFID II rules."
}