{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The UBS Sustainable Development Bank Bonds UCITS ETF hCHF acc is classified as non-complex under MiFID II. The fund uses physical replication (stratified sampling) to track the Solactive Global Multilateral Development Bank Bond USD 25% Issuer Capped hedged to CHF Total Return Index, which consists of bonds issued by multilateral development banks. While the KIID mentions the possibility of using derivatives for efficient portfolio management, the factsheet explicitly states that the replication methodology is 'physical stratified sampling,' indicating no synthetic replication or swap usage. The fund has no leverage, inverse exposure, or complex structured features. The underlying assets (bonds from development banks) are liquid and transparent, and the fund is UCITS-compliant, further supporting its non-complex classification. The risk profile is straightforward (risk category 3), and the fund's objective is clear: to replicate the index's performance. No capital protection mechanisms or contingent convertible bonds are involved. The only derivative-related mention in the KIID is about potential counterparty risk if derivatives were used, but the factsheet confirms physical replication, making this a non-issue. The fund's low tracking error and alignment with the index further reinforce its simplicity.",
    "confidence": 95
}