Simplify and Partners to Ring the Closing Bell at the NYSE to Mark the Recent Successful Launch of the Simplify Opportunistic Income ETF (CRDT)
- Investors seek actively managed solutions to mitigate fixed income volatility
- CRDT aims to enhance overall portfolio risk and absolute return
- None.
Fund is designed to provide compelling current income opportunities
CRDT is built around an actively managed, opportunistic credit strategy from Asterozoa Capital Management focused on security selection within high-yield, investment grade, and distressed debt
CRDT, which launched on June 26th, is unique for its actively managed, opportunistic credit strategy which focuses on security selection within the high yield, investment grade, and distressed debt universes.
“We’ve been thrilled with the response that CRDT has generated thus far across the investor landscape as investors and advisors are clearly seeking out actively managed solutions to mitigate the ongoing volatility in fixed income,” said David Berns, PhD, Simplify’s Chief Investment Officer and Cofounder. “With CRDT, we have provided a means for all investors to add a truly active hedge fund-like strategy with no K-1s, lockups or high fees. It is an income solution whose time we believe has come.”
Asterozoa Capital Management is a highly experienced alternative manager with deep expertise in credit and fixed income derivatives. They deploy a proprietary multi-step investment process in the management of CRDT which combines macroeconomic, quantitative, and fundamental research to generate current income, with long-term capital appreciation as a secondary objective. Additionally, Asterozoa employs a dynamic macro hedging overlay, typically in the forms of interest rate swaps,
“We are thrilled to celebrate the launch of CRDT. We see immense opportunity across the credit spectrum in today’s environment, and believe the strategy is well-positioned to take advantage of market dislocations throughout this cycle. Asterozoa's differentiated approach allows for a unique blend of exposures that would not traditionally be seen in peer group funds, providing risk/return profiles that aim to enhance overall portfolio risk and absolute return for allocators,” added Joe Hegener, Asterozoa Chief Investment Officer.
More information on CRDT can be found here: https://www.simplify.us/etfs/crdt-simplify-opportunistic-income-etf
ABOUT SIMPLIFY ASSET MANAGEMENT INC
Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking. For more information, visit www.simplify.us.
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DEFINITIONS:
The Credit Default Swap Index (CDX): A benchmark index that tracks a basket of
Option: An option is a contract that gives the buyer the right to either buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a pre-determined price ("strike") by a specific date ("expiry"). An "outright" is another name for a single option leg. A "spread" is when options are bought at one strike and an equal amount of options are sold at a different strike, all at the same expiry.
Swap: An agreement between two parties to exchange sequences of cash flows for a set period of time. Usually, at the time the contract is initiated, at least one of these series of cash flows is determined by a random or uncertain variable, such as an interest rate, foreign exchange rate, equity price, or commodity price.
IMPORTANT INFORMATION:
Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus containing this and other important information, please call (855) 772-8488, or visit SimplifyETFs.com. Please read the prospectus carefully before you invest.
An investment in the fund involves risk, including possible loss of principal.
The fund is actively-managed is subject to the risk that the strategy may not produce the intended results. The fund is new and has a limited operating history to evaluate. The Fund invests in ETFs (Exchange-Traded Funds) and entails higher expenses than if invested into the underlying ETF directly. The lower the credit quality, the more volatile performance will be. When junk bonds sell off, the lowest-rated bonds are typically hit hardest known as blow up risk. Likewise, the riskiest bonds typically rise fastest in a bull market however these investments that don't have a credit rating are typically the most volatile, hard to price and the least liquid.
The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate, or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The Fund's investment in fixed income securities is subject to credit risk (the debtor may default) and prepayment risk (an obligation paid early) which could cause its share price and total return to be reduced. Typically, as interest rates rise the value of bond prices will decline and the fund could lose value.
Emerging Markets Risk. Investing in emerging markets involves not only the risks described with respect to investing in foreign securities, but also other risks, including exposure to economic structures that are generally less diverse and mature, limited availability and reliability of information material to an investment decision, and exposure to political systems that can be expected to have less stability than those of developed countries. Futures Risk. The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
While the option overlay is intended to improve the Fund’s performance, there is no guarantee that it will do so. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.
Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.
©2023 Simplify ETFs. All rights reserved.
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MEDIA:
Chris Sullivan
Craft & Capital
(212) 473-4442
chris@craftandcapital.com
Source: Simplify Asset Management
