{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS (Lux) Fund Solutions - J.P. Morgan USD EM IG ESG Diversified Bond UCITS ETF (hedged to CHF) A-acc",
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The ETF is a UCITS-compliant bond ETF tracking the J.P. Morgan USD EM IG ESG Diversified Bond Index (Total Return) using a stratified sampling approach with portfolio optimisation. The fund invests predominantly in physical bonds (investment grade emerging market sovereign and corporate bonds) and uses physical replication rather than synthetic replication. The KIID and PRIIPs KID documents confirm that derivatives may be used only for hedging currency risk (currency forwards for hedging USD/CHF exposure) and not as an inherent part of the investment strategy. There is no mention of swap agreements, total return swaps, or counterparty risk related to derivatives. The fund does not engage in securities lending. The risk profile is moderate (risk category 4 in KIID, but PRIIPs KID shows a low risk 2/7, reflecting the bond nature and hedging). There is no leverage, inverse or amplified exposure. The underlying assets are liquid investment grade bonds, with no complex structured products or contingent convertible bonds. Costs are straightforward with a TER of 0.43%, no performance fees, and no swap or derivative fees. The monthly factsheet confirms physical stratified sampling replication and no synthetic swap usage. Currency hedging is done via forwards, which is standard and not considered a complexity driver under MiFID II. No capital protection or structured features are present. No complexity warnings or comprehension warnings appear in the PRIIPs KID. Overall, the ETF exhibits a clear, linear relationship to the underlying index performance, invests directly in liquid, transparent securities, and uses minimal derivative exposure solely for currency hedging. Therefore, it is classified as non-complex under MiFID II."
}