{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS J.P. Morgan USD EM Diversified Bond 1-5 UCITS ETF, class hEUR acc",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "Stratified sampling with portfolio optimisation; currency hedging via forwards; exposure to emerging market bonds with some illiquidity and credit risk",
    "classification": "non-complex",
    "supporting_data": "The ETF is a UCITS-compliant bond ETF tracking the J.P. Morgan USD EM Diversified 3% capped 1-5 Year Bond Index using a stratified sampling approach with portfolio optimisation. The KIID and PRIIPs KID indicate that the fund achieves exposure predominantly through direct investment in bonds and transferable securities, with possible limited use of derivatives for efficient portfolio management and currency hedging (currency forwards). There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty risk related to swaps. The fund does not engage in securities lending. The replication method is physical stratified sampling, confirmed by the factsheet. Leverage or inverse exposure is not present. The risk profile in the KIID is moderate (category 4) based on volatility, but the PRIIPs KID risk indicator is low (category 2), reflecting the product's risk over a 3-year horizon and its bond nature. The fund invests in emerging market bonds which carry credit and liquidity risks, but these do not constitute complexity under MiFID II. The currency hedging is done via one-month forward contracts, a standard and transparent technique, not implying synthetic replication or complex derivative usage. Costs are straightforward with a TER of 0.38%, no performance fees, and no swap fees. The PRIIPs KID states the product is 'not simple and may be difficult to understand' but this is likely due to the underlying emerging market bond exposure and currency hedging rather than structural complexity such as swaps or leverage. No capital protection or structured features are present. Overall, the ETF does not meet the MiFID II complexity criteria related to synthetic replication, leverage, complex underlying assets like contingent bonds, or capital protection mechanisms. Therefore, it is classified as non-complex."
}