{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The iShares Global Govt Bond UCITS ETF GBP Hedged (Dist) is classified as non-complex under MiFID II. While it uses derivatives (specifically FX forward contracts for currency hedging and potentially other financial derivative instruments for optimisation), these are used for efficient portfolio management and hedging rather than for leverage or complex strategies. The fund primarily invests in physical government bonds, with a straightforward objective of tracking the FTSE G7 Government Bond Index. The risk profile is rated as medium (3 out of 7), and the fund does not exhibit any of the complexity triggers such as leverage, inverse exposure, or capital protection mechanisms. The use of derivatives is limited to hedging and optimisation, which is common in bond ETFs and does not materially alter the risk profile. The fund is UCITS-compliant, which further supports its classification as non-complex. The underlying assets are liquid government bonds, and the fund's strategy is transparent and easily understandable for retail investors.",
    "confidence": 90
}