{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "leverage": false,
        "derivatives": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "synthetic",
        "complex_factors": [
            "Derivative use for replication",
            "Counterparty risk",
            "Collateral risk",
            "Index tracking via derivatives"
        ],
        "classification": "complex",
        "supporting_data": "This is a UCITS ETF passively managed to track the Bloomberg Japan Treasury 1-3 Year Bond Index (Total Return). It achieves its investment objective by either direct investment in the index's component securities or through the use of derivatives. The ETF uses OTC derivatives, engendering counterparty risk. Sustainability risks are not systematically integrated. As index tracking uses derivatives it's synthetic rather than physical replication. The ETF will invest its net assets predominantly in bonds, transferable securities, money market instruments, units of undertakings for collective investment, deposits with credit institutions, structured notes listed or dealt in on a regulated market and other assets eligible under the prospectus.The sub-fund will not enter into any securities lending. Exposure to the index through direct replication may be affected by rebalancing costs, while exposure to the index through derivatives may be affected by derivative trading costs.",
        "justification": "The UBS (Lux) Fund Solutions - Bloomberg Japan Treasury 1-3 Year Bond UCITS ETF is classified as 'complex' due to its use of derivatives for achieving its investment objective, specifically using them to replicate the index's performance. This introduces risks like counterparty risk and collateral risk that are not easily understood by retail investors. Furthermore, the fund employs synthetic replication which adds opacity compared to physical replication. While it's UCITS compliant which implies a certain degree of investor protection, the derivative usage and synthetic nature overrule the non-complex presumption."
    }
}