{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives for hedging and efficiency, Counterparty risk exposure, Currency hedging via forwards",
    "classification": "complex",
    "supporting_data": "The UBS BBG TIPS 10+ UCITS ETF primarily invests in inflation-linked government bonds and aims to track the Bloomberg US Government 10+ Year Inflation-Linked Bond\u2122 hedged to GBP Index. The fund uses direct investments in the underlying securities 'and/or' derivatives, particularly OTC derivatives, to gain exposure or for efficiency reasons. The KIID explicitly mentions the use of OTC derivatives and associated counterparty risk, mitigated by collateral policies. The currency hedging is achieved through selling currency forwards, which are derivative instruments. Although the derivatives are used mainly for hedging and efficiency rather than speculative purposes, the presence of OTC derivatives and counterparty risk exposure triggers complexity under MiFID II. The replication method is not purely physical as derivatives are used when direct replication is impractical. There is no leverage, inverse exposure, or capital protection features. The risk profile is moderate to high (category 5 out of 7), reflecting bond market volatility and derivative usage. Costs are straightforward with no performance fees or complex fee structures. The fund is UCITS compliant. Despite the absence of leverage or complex structured products, the use of OTC derivatives and counterparty risk exposure, combined with currency forwards for hedging, leads to a classification of 'complex' under MiFID II. No PRIIPs KID or factsheet was provided to alter this assessment."
}