{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Stratified sampling, Emerging Market Bonds, Structured Notes",
    "classification": "non-complex",
    "supporting_data": "The UBS J.P. Morgan EM Multi-Factor Enhanced Local Currency Bond UCITS ETF uses a stratified sampling approach to replicate the J.P. Morgan Emerging Market Enhanced Multi-Factor Local Currency Bond Index. The fund invests predominantly in bonds and transferable securities, with some use of derivatives only to achieve proportionate exposure or for risk management, not as an inherent part of the strategy. There is no mention of synthetic replication, swap agreements, or funded/unfunded swaps. The fund does not engage in securities lending. The fact sheet confirms physical stratified sampling replication. Leverage or inverse exposure is not present. The risk profile is moderate (category 5 in KIID, 3 in PRIIPs KID, reflecting volatility and emerging market credit risk but not complexity). The PRIIPs KID explicitly states the product 'is not simple and may be difficult to understand' due to the nature of emerging market bonds and multi-factor index construction, but no leverage or synthetic replication is involved. Costs are straightforward with a 0.40% ongoing charge and no performance fees or swap fees. The underlying assets include emerging market local currency bonds and some structured notes, which add some complexity but do not trigger MiFID II complexity classification by themselves. No capital protection or structured contingent features are present. Counterparty risk is disclosed as a general risk of derivatives use but no significant counterparty exposure is indicated. Overall, the fund's complexity arises mainly from the underlying emerging market bond exposure and the multi-factor index methodology, not from leverage, synthetic replication, or complex derivatives usage. Therefore, under MiFID II, this ETF is classified as non-complex."
}