{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS Core MSCI EM UCITS ETF, class USD Ukdis",
    "investment_objective": "Passive replication of MSCI Emerging Markets Index (Net Return) using representative sampling and portfolio optimization",
    "primary_asset_class": "Equity",
    "geographic_focus": "Emerging Markets (21 countries including China, Taiwan, India, Korea, Brazil, Saudi Arabia, South Africa, Mexico)",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives for efficient exposure and hard-to-access markets, counterparty risk, sampling strategy",
    "classification": "complex",
    "supporting_data": "The ETF primarily uses physical replication via representative sampling of MSCI Emerging Markets Index constituents, but the KIID and PRIIPs KID explicitly state that derivatives, including OTC derivatives, may be used where direct replication is impractical or to gain efficiencies. The use of OTC derivatives introduces counterparty risk, although mitigated by collateral policies. The fund does not employ leverage or inverse strategies. The risk profile is medium to high (risk category 5 in KIID, 4 in PRIIPs KID), reflecting equity market volatility and derivative usage. The fund is UCITS compliant and invests mainly in equities, but also may hold structured notes and money market instruments. The factsheet confirms physical stratified sampling as the main replication method with a small percentage of derivatives used for hard-to-access markets. No leverage or capital protection features are present. The presence of OTC derivatives and counterparty risk, even if limited, triggers MiFID II complexity classification. The derivatives are used as an inherent part of the strategy to gain exposure, not solely for risk management, so 'derivatives' is false only if used purely for risk management, which is not the case here. No leverage or inverse exposure is present. The fund does not invest in complex underlying assets like contingent convertible bonds or CLOs. The complexity arises mainly from the use of OTC derivatives (swaps) and counterparty risk exposure, combined with the sampling replication method and emerging markets exposure which may be less transparent and liquid. No capital protection or structured features are present. Costs are straightforward with no performance fees or complex fee structures. The PRIIPs KID does not carry a comprehension warning but shows a medium risk level and clear disclosure of counterparty risk. Overall, the ETF is classified as complex under MiFID II due to the use of OTC derivatives (swaps) and associated counterparty risk as an inherent element of the investment strategy.",
    "risk_level_assessment": "The fund's risk category is 5 (KIID) and 4 (PRIIPs KID) on a 7-point scale, indicating medium to high risk mainly due to equity market volatility and derivative usage. The presence of counterparty risk and derivative instruments increases complexity despite the absence of leverage or capital protection. This aligns with the MiFID II complexity classification as the fund's structure and risk disclosures indicate that retail investors may require specific knowledge to understand the product fully."
}