{
    "fund_name": "Amundi US Treasury Bond 3-7Y UCITS ETF GBP Hedged Dist",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Currency Hedging",
        "Counterparty Risk from Swaps"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses physical replication but employs currency hedging via swaps with counterparties (Morgan Stanley Bank AG, Societe Generale), introducing counterparty risk. While the primary replication is physical, the hedging strategy involves derivatives (swaps), which are not purely for efficient portfolio management but are integral to the fund's strategy. The presence of counterparty risk and the need for daily hedging add layers of complexity that may not be easily understood by retail investors. Additionally, the fact sheet mentions 'counterparty risk' and 'hedging risk' as material risks, further supporting the complexity classification.",
    "confidence": 90,
    "risk_level": 3,
    "counterparty_risk": true,
    "hedging_strategy": "daily currency hedging via swaps",
    "benchmark_complexity": "low (Bloomberg Barclays US Treasury 3-7 Year Index)",
    "liquidity_risk": "moderate (US Treasury bonds are generally liquid, but hedging adds complexity)",
    "additional_notes": "While the ETF tracks a straightforward index and uses physical replication, the hedging mechanism introduces complexity. The MiFID II classification hinges on whether the derivatives (swaps) are used in a way that requires specialist knowledge. Here, the hedging is not merely incidental but a core part of the strategy, making the product complex under MiFID II rules. The PRIIPs KID (if available) might include a comprehension warning, further supporting this classification."
}