{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Amundi MSCI Japan UCITS ETF GBP Hedged Acc",
    "investment_objective": "To reflect the upward and downward evolution of the MSCI Japan Net Total Return Index (net dividends reinvested) denominated in JPY, while minimizing tracking error, with a GBP currency hedge.",
    "primary_asset_class": "Equity",
    "geographic_focus": "Japan",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Currency Hedging via OTC Swaps",
        "Counterparty Risk",
        "Use of Derivatives for Hedging"
    ],
    "classification": "complex",
    "supporting_data": "The ETF physically replicates the MSCI Japan Net Total Return Index primarily through direct investment in underlying equities, with possible sampling replication. However, it employs a daily GBP currency hedging strategy using OTC swaps with counterparties such as Morgan Stanley Bank AG and Societe Generale. The KIID and factsheet explicitly mention the use of financial derivative instruments for currency hedging, counterparty risk exposure limited to 10% of fund assets, and risks related to derivatives including leverage risk, valuation risk, and liquidity risk. There is no leverage or inverse exposure, and the fund is UCITS compliant. The risk profile is medium (4/7), reflecting equity market exposure and derivative-related risks. The use of OTC swaps for currency hedging introduces counterparty risk and derivative complexity, which under MiFID II rules classifies the ETF as complex despite the physical replication of equities and absence of leverage or structured capital protection. No contingent bonds or structured products are held. The PRIIPs KID does not include a comprehension warning but confirms medium risk and derivative use. Costs are straightforward with no performance fees, but derivative costs are implicit in the hedging strategy. Overall, the complexity arises from the embedded currency hedging via swaps and associated counterparty risk rather than from leverage or complex underlying assets."
}