{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Derivatives used for currency hedging, securities lending",
    "classification": "non-complex",
    "supporting_data": "This UCITS ETF is a sub-fund of iShares III plc, authorized in Ireland and regulated by the Central Bank of Ireland. It aims to track the Bloomberg Barclays Global Aggregate Bond Index using physical replication (optimized sampling), holding investment-grade fixed income securities. Derivatives (FDIs, including FX forward contracts) are used solely for currency hedging to reduce the effect of exchange rate fluctuations between the share class currency (NZD) and the fund's underlying portfolio currencies. The use of derivatives is limited to efficient portfolio management (EPM) and does not form an integral part of the investment strategy. Securities lending is employed to generate additional income, but this is a secondary feature, well-managed within UCITS rules, and does not dominate the risk profile. The ETF does not use significant leverage, embedded derivatives, or synthetic replication. The structure, risks (market, credit, interest rate, issuer default), and investment objective are transparent and straightforward for retail investors with basic knowledge. The UCITS regulatory framework ensures diversification, liquidity, and transparency, supporting the non-complex classification under MiFID II Article 25(4)(a)(iv) and Article 57 of the Delegated Regulation, as the derivative use is ancillary and the product does not embed complex features or introduce material counterparty or collateral risk beyond standard UCITS limits[1]. ESMA and CESR guidance confirms that UCITS are generally non-complex unless they employ complex portfolio management techniques or synthetic replication, which is not the case here[2]. The ETF's risks are typical for a global aggregate bond fund and are clearly disclosed in the KID."
}