{
    "fund_name": "iShares $ Short Duration Corp Bond UCITS MXN Hedged (Acc)",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using derivatives (FX forwards)",
        "Limited use of financial derivative instruments (FDIs) for direct investment purposes",
        "Counterparty risk from derivative counterparties"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF primarily uses physical replication to track the Markit iBoxx USD Liquid Investment Grade 0-5 Index, with limited use of derivatives for direct investment purposes and currency hedging. While derivatives are used, they are not the primary investment strategy and the fund's overall structure remains straightforward. The use of derivatives is disclosed as limited and primarily for efficient portfolio management (hedging and replication). The risk profile is rated as medium (3/7), and the fund invests in liquid, investment-grade corporate bonds with a short duration (0-5 years). The complexity factors identified (derivative usage for hedging and limited direct investment) do not rise to the level of making the fund 'complex' under MiFID II, as the derivatives are used for straightforward purposes and the overall risk profile is transparent and understandable for retail investors.",
    "confidence": 85,
    "counter_argument": "One could argue that the use of derivatives for hedging and the potential counterparty risk from derivative counterparties could make the fund complex. However, the derivatives are used for straightforward purposes (currency hedging and limited direct investment), and the overall risk profile remains transparent and understandable. The fund's primary investment strategy is physical replication of a straightforward bond index, and the use of derivatives is limited and disclosed. Therefore, the fund is classified as non-complex under MiFID II.",
    "overriding_reason": "The use of derivatives is limited and disclosed, and the overall risk profile remains transparent and understandable. The fund's primary investment strategy is physical replication of a straightforward bond index, and the use of derivatives is not the primary investment strategy."
}