{
    "fund_name": "Invesco JPX-Nikkei 400 UCITS ETF EUR Hdg Acc",
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication using unfunded swaps",
        "Counterparty risk from swap agreements",
        "Currency hedging using forward FX contracts",
        "Potential tracking error from swap pricing"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses synthetic replication with unfunded swaps to track the JPX-Nikkei 400 Index, which introduces counterparty risk and potential tracking error. While the underlying index is straightforward (Japanese equities), the synthetic structure and swap-based hedging make the investment mechanism more complex. The PRIIPs KID mentions 'comprehension warning' elements, and the extensive derivative usage (swap fees explicitly disclosed) suggests this would be classified as complex under MiFID II. The fund's risk category 6 (highest) and disclosures about swap counterparty risk further support this classification.",
    "confidence": 90
}