{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via OTC swap",
        "Counterparty risk exposure",
        "Currency hedging strategy",
        "Use of financial derivative instruments"
    ],
    "classification": "complex",
    "supporting_data": "The Amundi Global Equity Quality Income UCITS ETF GBP Hedged Acc is a UCITS-compliant ETF that tracks the SG Global Quality Income NTR Index using synthetic replication via an over-the-counter (OTC) swap contract. The KIID and PRIIPs KID explicitly state the use of financial derivative instruments (FDI) and OTC swaps to achieve the investment objective, with counterparty exposure limited to 10% per UCITS guidelines but present nonetheless. The fund employs a daily currency hedging strategy to reduce GBP/EUR currency risk, which involves derivatives but no leverage or inverse exposure is indicated. The risk profile is medium (4/7), reflecting market and derivative risks but no leverage. The factsheet confirms synthetic replication and counterparty risk with named counterparties (Morgan Stanley Bank AG, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale). There is no leverage or capital protection mechanism. The use of swaps and derivatives as an inherent part of the replication strategy, combined with counterparty risk and currency hedging, triggers MiFID II complexity classification. Although the fund invests in liquid international equities and is UCITS compliant, the synthetic structure and swap usage mean the product is not straightforward for retail investors to fully understand, justifying the 'complex' classification under MiFID II. No leverage or inverse exposure is present, and derivatives are used as an inherent element of the strategy, not merely for risk management. No contingent bonds or structured capital protection features are involved."
}