{
    "name": "iShares Global Inflation Linked Govt Bond EUR Hedged (Dist)",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Derivative usage for currency hedging",
        "Counterparty risk from derivatives"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses financial derivative instruments (FDIs) for currency hedging purposes, specifically FX forward contracts, which introduces counterparty risk. While the primary replication method is physical, the use of derivatives for hedging and potential optimisation techniques creates additional complexity. The presence of counterparty risk and the need for investors to understand derivative mechanics make this a complex instrument under MiFID II, despite its UCITS compliance and physical replication.",
    "confidence": 85,
    "risk_level": 4,
    "benchmark_complexity": "moderate",
    "liquidity_profile": "high",
    "counterparty_risk": true,
    "hedging_strategy": "currency hedging via FX forwards",
    "additional_notes": "Although the ETF is physically replicated and tracks a straightforward government bond index, the use of derivatives for hedging and potential optimisation introduces elements that require specialist knowledge to fully understand. The counterparty risk from derivatives is explicitly mentioned in the KIID, which is a key factor in the complex classification."
}