{
    "ucits": true,
    "type": "ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": "Derivative use for currency hedging, not for index replication",
    "classification": "non-complex",
    "supporting_data": "The UBS (Lux) Fund Solutions u2013 MSCI EMU Socially Responsible UCITS ETF is a UCITS-compliant, physically replicated ETF tracking a transparent equity index. It uses derivatives (currency forwards) solely for currency hedging to reduce the impact of currency fluctuations between the fund's reference currency (CHF) and the index currency, not for index replication. The fund does not engage in securities lending, does not use leverage beyond UCITS limits, and does not hold complex bonds or structured products. The risk profile is driven by equity market volatility, not by complex structures or embedded derivatives. The use of derivatives for efficient portfolio management (EPM)u2014specifically, currency hedgingu2014does not, under MiFID II and ESMA guidance, automatically render a UCITS ETF complex, provided the derivatives are not central to the investment objective and do not introduce significant counterparty or collateral risk that is hard for a retail investor to understand. The fund's structure, objectives, and risks are transparent and readily understandable for a retail investor with basic knowledge. Therefore, despite the use of derivatives for hedging, the ETF remains non-complex under MiFID II, as it meets all UCITS and Article 57 criteria for non-complexity[1]. No comprehension alert is required."
}