{
    "type": "ETF",
    "ucits": true,
    "fund_name": "AMUNDI JAPAN TOPIX UCITS ETF - DAILY HEDGED GBP",
    "investment_objective": "Track the performance of TOPIX Index with minimized tracking error",
    "primary_asset_class": "Equity",
    "geographic_focus": "Japan",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via total return swaps",
        "Counterparty risk exposure",
        "Currency hedging strategy using derivatives"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses an indirect replication method via total return swaps (financial derivative instruments) to achieve exposure to the TOPIX Index. The KIID and PRIIPs KID explicitly state that derivatives are integral to the investment strategy, with total return swaps delivering index performance against the assets held. The fund is UCITS compliant but involves counterparty risk due to swap usage. There is no leverage or inverse exposure, and the risk rating is moderate (4/7). The currency hedging strategy also involves derivatives, adding to complexity. The replication method is synthetic, not physical, and the fund does not invest directly in underlying securities but gains exposure through swaps. These factors, especially the use of total return swaps and counterparty risk, drive the MiFID II classification as complex despite a straightforward equity index objective and moderate risk profile. No capital protection or structured features are present. Costs are standard with no performance fees, but swap-related derivative costs are implicit. The PRIIPs KID does not include a comprehension warning but confirms derivative use and counterparty risk. The factsheet confirms synthetic replication and no leverage. Overall, the presence of funded or unfunded total return swaps and counterparty risk exposure mandates classification as complex under MiFID II rules."
}