{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Amundi US Treasury Bond 1-3Y UCITS ETF GBP Hedged Dist",
    "investment_objective": "Track Bloomberg Barclays US Treasury 1-3 Year Index with GBP currency hedging",
    "primary_asset_class": "Bond",
    "geographic_focus": "United States",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Swap usage for currency hedging",
    "classification": "complex",
    "supporting_data": "The ETF is a UCITS bond ETF physically replicating the Bloomberg Barclays US Treasury 1-3 Year Index, investing primarily in US Treasury bonds. The fund uses a sampling replication strategy and applies a daily GBP currency hedging strategy. The KIID and factsheet explicitly mention the use of OTC swaps with Morgan Stanley Bank AG and Societe Generale for currency hedging purposes, with counterparty exposure capped at 10% of total assets. Although the derivatives are used for hedging currency risk rather than for investment exposure, the presence of funded/unfunded swap agreements and counterparty risk exposure triggers MiFID II complexity classification. There is no leverage, inverse or amplified exposure. The risk profile is low (SRRI 2/7), and the fund invests in liquid, transparent sovereign bonds with no capital protection or structured features. Costs are simple with no performance fees. However, the use of OTC swaps for currency hedging and the associated counterparty risk, as well as the complexity of the currency hedging mechanism, lead to a classification as complex under MiFID II. No comprehension warnings or structured product features are present. The fund\u2019s linear bond exposure and physical replication reduce complexity, but swap usage for hedging is a decisive factor for complexity classification."
}