{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS (Lux) Fund Solutions - MSCI Switzerland 20/35 UCITS ETF (hedged to GBP) A-dis",
    "investment_objective": "Passive replication of the MSCI Switzerland 20/35 100% hedged to GBP Index (Net Return), aiming to track the index performance with currency hedging.",
    "primary_asset_class": "Equity",
    "geographic_focus": "Switzerland",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives for currency hedging and potential derivative exposure for index replication efficiencies",
    "classification": "complex",
    "supporting_data": "The ETF primarily uses physical replication investing directly in the underlying equities of the MSCI Switzerland 20/35 index. However, the KIID and PRIIPs KID explicitly mention the use of derivatives, including OTC derivatives and currency forwards, to achieve currency hedging and to gain exposure where direct replication is not practicable. The use of OTC derivatives introduces counterparty risk, although mitigated by collateral policies. The fund may also hold structured notes and engage in securities lending. The PRIIPs KID classifies the product as medium risk (4/7) with no leverage or inverse exposure. The monthly factsheet confirms physical full replication methodology and UCITS compliance. Despite the physical replication, the presence of OTC derivatives and swap agreements for hedging and efficiency purposes triggers the MiFID II complexity classification. There is no leverage or inverse exposure, and derivatives are used as an inherent part of the strategy rather than solely for risk management, so derivatives are marked true. The risk profile is medium to high (risk category 5 in KIID, 4 in PRIIPs), reflecting equity volatility and derivative counterparty risk. No capital protection or structured contingent features are present. Costs are straightforward with no performance fees but include derivative trading costs and securities lending. Overall, the complexity arises from the use of OTC derivatives and swap agreements, counterparty risk, and the hedging strategy, which may not be easily understood by retail investors.",
    "risk_level_assessment": "The fund's risk profile is medium to high due to equity market exposure and derivative counterparty risk. The KIID risk category is 5 (on a 1-7 scale), and PRIIPs KID indicates a risk class of 4. This aligns with the complexity arising from derivative use and currency hedging, which increases risk beyond simple physical equity ETFs."
}