{
    "fund_name": "HSBC Global Funds ICAV - Global Corporate Bond UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Investment in CoCo bonds (Contingent Convertible Bonds)",
        "Potential investment in bonds rated below investment grade (Ba1, BB+ and below)",
        "Use of derivatives for hedging and efficient portfolio management",
        "Tracking error risk due to optimisation strategy"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF is classified as non-complex under MiFID II for the following reasons: 1. It uses physical replication as its primary investment method, with derivatives used only for hedging and efficient portfolio management (not for leverage or inverse exposure). 2. The fund tracks a mainstream corporate bond index (Bloomberg Global Aggregate Corporate Bond Index) with a straightforward investment objective. 3. While it may invest in CoCo bonds and bonds below investment grade, these are clearly disclosed and form part of a standard corporate bond strategy. 4. The fund is UCITS-compliant, which inherently includes certain investor protection standards. 5. The risk profile is clearly communicated as medium risk (category 4 on the risk scale). The potential complexity factors (CoCo bonds, below-investment-grade bonds, and derivative usage) are all within the scope of typical corporate bond ETFs and do not materially alter the fund's risk profile or make it unsuitable for retail investors. The use of derivatives is for efficient portfolio management and does not create additional complexity beyond what is standard for bond ETFs.",
    "confidence": 90
}