Simplify Teams With India Experts at System Two Advisors to Launch the Actively Managed Simplify Tara India Opportunities ETF (IOPP)

Rhea-AI Summary

Simplify Asset Management launches the Simplify Tara India Opportunities ETF (IOPP) in partnership with System Two Advisors, providing investors with an actively managed fund focused on capturing the unique aspects of the Indian economy and growth story.

India-focused indexes tend to overweight large, globally-oriented firms, missing the companies more closely tied to the key drivers of Indian economic growth

Fund is Simplify’s inaugural international ETF as firm continues to build out innovative lineup with an eye towards new strategies and geographies

NEW YORK--(BUSINESS WIRE)-- Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”), is today announcing that it has teamed with System Two Advisors to launch the Simplify Tara India Opportunities ETF (IOPP).

IOPP is an actively managed fund and the first ETF to make broadly available System Two Advisors’ depth and breadth of local market expertise in India.

“We’re thrilled to be bringing IOPP to market and can think of no better firm with which to partner than System Two Advisors,” said Fiona Ho, Chief Operating Officer with Simplify. “Their on-the-ground knowledge of the unique aspects of the Indian economy and India growth story, combined with our expertise in building and running innovative ETFs, make this a powerful combination and one we’re eager to discuss with investors and advisors.”

In constructing the IOPP portfolio, System Two Advisors focuses on bottom-up research, taking into account a number of key aspects of every company under consideration for inclusion in the portfolio, such as business moat, growth drivers, management quality and future growth potential. This research is further supported by the firm’s 70 on-the-ground in-market personnel across India, resulting in a concentrated, high-conviction portfolio of 25-40 specific names with high active share.

“India is one of the fastest-growing major economies in the world, with GDP forecasted to top six percent over the next five years. The country also boasts highly favorable demographics, with more than 40 percent of the population under the age of 24. It’s no surprise then that investors are turning more of their attention to the role that India can play in an international equity portfolio; but what is surprising is how investors have gravitated towards passive India exposures, which are too often dominated by large, globally oriented stocks,” said Anupam Ghose, Managing Partner at System Two Advisors.

“To truly capture the India growth story, an actively managed approach is a must,” added Ghose. “An experienced active manager with people in-market who understand what makes India’s economy unique are better able to identify investment ideas tied to the country’s key drivers of growth, such as the rise in middle-class disposable income, digitization, and growth in manufacturing. We bring that understanding and are very pleased to be partnering with the forward-thinking team at Simplify to make IOPP available to all.”

“Investment opportunities do not know borders, and neither should innovation. With IOPP, our first international ETF, Simplify is again opening new doors for investors and advisors,” added Ho.

IOPP will join a relatively small number of actively managed Indian equity ETFs currently available to investors and is the latest addition to the Simplify fund lineup, which recently passed the $3.6 billion AUM mark.

For more information about IOPP, please visit: https://www.simplify.us/etfs/iopp-simplify-tara-india-opportunities-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.

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.

India Risk. Because the Fund focuses its investments in India, the Fund is subject to certain risks related to economic, political, regulatory, or other events or conditions affecting issuers in India. Such risks include, but are not limited to, political and legal uncertainty, persistent religious, ethnic and border disputes, security concerns (e.g., terrorism and strained international relations), greater government control over the economy, currency fluctuations, exchange control regulations (including currency blockage), inflation, confiscatory taxation, nationalization or expropriation of assets, and others associated with emerging market countries.

Foreign Investment Risk. The Fund may invest in securities domiciled in countries outside the U.S. that may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. Diversification does not assure a profit.

Foreign Exchange Risk. Because many securities held by the Fund trade on foreign exchanges that may be closed when the Fund’s primary listing exchange is open, there are likely to be deviations between the current price of a security and the security’s last quoted price from the closed foreign market. This may result in premiums and discounts that are greater than those experienced by domestic ETFs.

Market and Geopolitical Risk. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market.

Underlying Funds Risk. Other investment companies (e.g., mutual funds and ETFs) in which the Fund invests (“Underlying Funds”) are subject to investment advisory and other expenses, which will be indirectly paid by the Fund.

Limited History Risk. The Fund is a new ETF and has a limited history of operations for investors to evaluate.

Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.

© 2024 Simplify ETFs. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240305679292/en/

MEDIA:

Chris Sullivan

Craft & Capital

chris@craftandcapital.com

Source: Simplify Asset Management

FAQ

What is the name of the newly launched ETF by Simplify Asset Management?

The newly launched ETF is called Simplify Tara India Opportunities ETF (IOPP).

Who is Simplify Asset Management partnering with to launch the IOPP ETF?

Simplify Asset Management is partnering with System Two Advisors to launch the IOPP ETF.

How many specific names are included in the IOPP portfolio?

The IOPP portfolio consists of 25-40 specific names with high active share.

What key aspects does System Two Advisors consider when constructing the IOPP portfolio?

System Two Advisors considers business moat, growth drivers, management quality, and future growth potential of every company for inclusion in the portfolio.

Why does System Two Advisors believe an actively managed approach is essential to capture the India growth story?

System Two Advisors believes an experienced active manager with in-market personnel can better identify investment ideas tied to India's key drivers of growth, such as rise in middle-class disposable income, digitization, and growth in manufacturing.

What milestone has Simplify Asset Management recently achieved in terms of assets under management (AUM)?

Simplify Asset Management recently passed the $3.6 billion AUM mark.

How does Simplify Asset Management view the launch of the IOPP ETF in terms of innovation?

Simplify Asset Management views the launch of the IOPP ETF as opening new doors for investors and advisors in the international market.

What distinguishes the IOPP ETF from passive India exposures?

The IOPP ETF offers an actively managed approach focused on capturing the unique aspects of the Indian economy and growth story, unlike passive India exposures dominated by large, globally oriented stocks.