{
    "type": "ETF",
    "ucits": true,
    "fund_name": "AMUNDI JPX-NIKKEI 400 UCITS ETF - DAILY HEDGED EUR",
    "investment_objective": "Track the performance of JPX-Nikkei 400 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 methodology via total return swaps (financial derivative instruments) to achieve exposure to the JPX-Nikkei 400 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 synthetic replication and swap usage inherently introduce counterparty risk and complexity. There is no leverage or inverse exposure, and the risk profile is moderate (4/7). The fund also employs a currency hedging strategy, which adds derivative usage but is part of risk management rather than leverage. The underlying index is a broad Japanese equity index, with no complex structured products or contingent bonds. Costs are straightforward with no performance fees, but swap fees and derivative costs are implicit. The presence of total return swaps and counterparty risk exposure are key drivers for classifying this ETF as complex under MiFID II. The risk disclosures highlight counterparty risk and liquidity risk beyond normal market conditions, reinforcing complexity. No capital protection or structured features are present. The PRIIPs KID does not carry a specific comprehension warning but confirms the derivative usage and medium risk level. The factsheet confirms synthetic replication and swap usage, with very low tracking error, indicating the swaps are used as a core part of the strategy rather than just risk management. Overall, the synthetic replication via total return swaps and associated counterparty risk are the main complexity factors despite the fund's straightforward equity index objective and moderate risk profile."
}