{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Currency hedging using derivatives",
        "Investment in emerging market bonds with credit risk",
        "Potential counterparty risk from derivative usage"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF primarily uses physical replication for its core strategy, tracking the J.P. Morgan EMBI Global Core Index through direct investment in emerging market bonds. While it employs derivatives for currency hedging (FX forward contracts) and may use optimisation techniques (including derivatives for direct investment purposes), these are standard practices for UCITS-compliant ETFs and do not significantly alter the fund's risk profile. The derivatives are used for efficient portfolio management rather than for leverage or complex strategies. The underlying index consists of liquid, transparent sovereign and quasi-sovereign bonds, and the fund's risk disclosures are clear. The absence of leverage, inverse strategies, or capital protection mechanisms further supports the non-complex classification. While counterparty risk exists from derivative usage, it is mitigated by UCITS compliance and the fund's risk management framework.",
    "confidence": 90
}