{
    "type": "ETF",
    "ucits": true,
    "fund_name": "AMUNDI JPX-NIKKEI 400 UCITS ETF - DAILY HEDGED GBP",
    "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": [
        "Swaps",
        "Synthetic replication",
        "Counterparty risk"
    ],
    "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 introduce counterparty risk, which is disclosed in the risk sections. There is no leverage or inverse exposure. The risk profile is medium (4/7), reflecting market risk and counterparty risk. Costs are straightforward with no performance fees, but swap usage implies derivative costs. The underlying index is a broad Japanese equity index, not inherently complex, but the synthetic structure and counterparty exposure drive the MiFID II complexity classification. No capital protection or structured features are present. The PRIIPs KID does not include a comprehension warning but confirms derivative use and counterparty risk. The factsheet confirms synthetic replication and swap usage, with low tracking error and no leverage. Overall, the presence of funded total return swaps and counterparty risk makes this ETF complex under MiFID II despite a medium risk profile and straightforward underlying index.",
    "risk_level": 4
}