{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Currency hedging with derivatives (FX forwards), securities lending",
    "classification": "non-complex",
    "supporting_data": "The iShares MSCI Japan SRI UCITS ETF GBP Hedged (Acc) is a UCITS-compliant, physically replicating ETF that tracks a transparent, ESG-screened equity index. It uses derivatives (FX forwards) solely for currency hedging to reduce exchange rate risk between the fund's base currency (USD) and the share class currency (GBP). Securities lending is employed to generate additional income, but is secondary and managed within UCITS rules. There is no significant leverage, no use of swaps or synthetic replication, and no embedded derivatives or complex payoff structures. The risks disclosed are standard for equity ETFs (market, sector, currency, and counterparty risk from derivatives and securities lending). Under MiFID II, all UCITS are automatically non-complex unless they are 'structured UCITS'u2014which this ETF is not, as its derivative use is limited to efficient portfolio management (EPM) for hedging, not for achieving the investment objective through complex structures[1]. The ETF's structure, risks, and objectives are transparent and can be understood by a retail investor with basic knowledge. Therefore, despite the use of derivatives for hedging and securities lending, the ETF remains non-complex under MiFID II[1]."
}