{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Amundi Global Government Bond II UCITS ETF EUR Hedged Dist",
    "investment_objective": "Track the FTSE G7 and EMU Government Bond Index - Developed Markets, representing fixed-rate, investment-grade sovereign bonds issued in local currencies by developed market sovereign governments, with currency hedging to EUR.",
    "primary_asset_class": "Bond",
    "geographic_focus": "Developed Markets - G7 and EMU countries",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC swaps for currency hedging, Counterparty risk exposure",
    "classification": "complex",
    "supporting_data": "The ETF is a UCITS-compliant bond ETF physically replicating the FTSE G7 and EMU Government Bond Index with a sampling replication strategy. The fund uses a daily currency hedging strategy implemented via OTC swaps with counterparties such as Morgan Stanley Bank AG and Societe Generale. The factsheet explicitly states the use of OTC swaps for currency hedging and notes counterparty risk exposure limited to 10% of total assets. Although the derivatives are used for hedging currency risk rather than for investment leverage or return amplification, the presence of funded OTC swaps and counterparty risk triggers MiFID II complexity classification. The fund does not employ leverage or inverse strategies, and the risk profile is low (SRRI 2/7). The underlying assets are investment-grade sovereign bonds, which are liquid and transparent. Costs are straightforward with no performance fees, and the ongoing charges are low (0.15%). The PRIIPs KID does not include a comprehension warning but confirms the use of hedging derivatives. The complexity arises primarily from the use of OTC swaps for currency hedging and the associated counterparty risk, which under MiFID II rules classifies the ETF as complex despite its low risk profile and physical replication of the underlying index."
}