{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The UBS (Lux) Fund Solutions - J.P. Morgan USD EM IG ESG Diversified Bond UCITS ETF is a UCITS-compliant ETF that tracks the J.P. Morgan USD EM IG ESG Diversified Bond Index using a physical stratified sampling replication method. The fund invests predominantly in investment grade emerging market bonds, including sovereign, quasi-sovereign, and corporate bonds, with no use of securities lending. The KIID and PRIIPs KID documents confirm that the fund may use derivatives only for risk management purposes, not as an inherent part of the investment strategy, and there is no mention of synthetic replication, swap agreements, or counterparty risk exposure. The factsheet explicitly states physical replication and stratified sampling, with no indication of leverage, inverse exposure, or capital protection features. The risk profile is moderate (risk category 4 in KIID, but low risk 2 in PRIIPs KID, reflecting different methodologies), with no complex derivative-related risk disclosures or counterparty risk warnings. Costs are straightforward with a single ongoing charge of 0.40% and no performance fees or swap fees. The index tracked is broad and transparent, with over 1000 constituents, and the fund holds liquid, investment grade bonds. There are no capital protection or structured features. The PRIIPs KID includes a comprehension warning stating the product is 'not simple and may be difficult to understand,' but this is likely due to the nature of emerging market bonds and ESG integration rather than structural complexity. Overall, the absence of synthetic replication, leverage, complex derivatives, or contingent bonds leads to a non-complex classification under MiFID II."
}