{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "physical",
        "ucits": true,
        "type": "ETF",
        "complex_factors": [
            "Derivatives used for currency hedging are integral to the share class strategy, introducing counterparty and collateral risk."
        ],
        "classification": "complex",
        "supporting_data": "The assessment begins with the baseline presumption that as a UCITS ETF, this product is non-complex. The fund employs physical replication by buying a portfolio of securities to track its index, which supports a non-complex classification. However, this presumption is overturned by the specific features of the share class (1C - EUR Hedged).The Key Investor Information Document (KIID) states that the fund will 'enter into financial contracts (derivatives) which attempt to reduce the effect of exchange rate fluctuations between the currency of the fund's assets and the currency of your shares.' This currency hedging is not merely for Efficient Portfolio Management (EPM) but is an integral and central part of the investment strategy for this specific share class. Its purpose is to alter the return profile for the EUR-based investor.Under the provided MiFID II rules, an ETF is classified as complex if 'derivatives are integral to achieving its investment objective'. The use of derivatives for hedging introduces risks such as counterparty risk (if the derivative provider defaults) and the risk that the hedge is not perfectly successful, which are difficult for a typical retail investor to understand. Currency hedging is commonly executed using forward contracts or swaps. The presence of these instruments, which are central to the share class's objective, makes the product's structure and risk profile opaque and requires advanced knowledge to fully comprehend. Therefore, despite being a physically-replicated UCITS ETF, the currency-hedged nature of this specific share class leads to a 'complex' classification.Complex"
    }
}