{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS Core MSCI EMU UCITS ETF, class EUR Ukdis",
    "investment_objective": "Passive replication of MSCI EMU Index (Net Return) via direct investments and/or derivatives to gain exposure or generate efficiencies",
    "primary_asset_class": "Equity",
    "geographic_focus": "European Economic and Monetary Union (EMU) countries",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives (swaps) for efficient index exposure and counterparty risk; partial synthetic replication",
    "classification": "complex",
    "supporting_data": "The fund primarily uses physical replication (full replication of MSCI EMU Index) but also employs derivatives, including OTC swaps, to gain exposure where direct replication is impractical or to improve efficiency. The KIID and PRIIPs documents explicitly mention the use of OTC derivatives and associated counterparty risk mitigated by collateral policies. The fund invests predominantly in equities but may hold structured notes and other eligible assets. The risk profile is medium to high (risk category 5 in KIID, 4 in PRIIPs), reflecting equity volatility and derivative usage. The fact sheet confirms physical replication as primary but acknowledges swap usage. Derivatives are used as an inherent part of the strategy, not just for risk management, so 'derivatives' is false per instructions, but 'swaps' is true. No leverage or inverse exposure is present. The presence of OTC swaps and counterparty risk exposure, even if mitigated, triggers MiFID II complexity classification. No capital protection or structured contingent features are present. Costs are straightforward with no performance fees, but derivative trading costs and securities lending are noted. The PRIIPs KID does not carry a comprehension warning but shows a medium risk level. Overall, the partial synthetic replication via swaps and counterparty risk exposure make this ETF complex under MiFID II despite its physical replication focus and UCITS compliance."
}