Net Asset Value Restatement for Simplify Interest Rate Hedge ETF (PFIX)

Rhea-AI Summary

Simplify Asset Management Inc. announced a correction in the net asset value (NAV) per share for its Simplify Interest Rate Hedge ETF (PFIX) due to an error exceeding 1%. The revised NAV, effective October 28, 2022, is $75.0216, down from the original $75.7968, reflecting a 1.03% adjustment. This restatement was deemed necessary to accurately represent the fund's value.

Positive

• The revision of NAV was made to enhance accuracy, reflecting a proactive approach to transparency.

Negative

• The original NAV error could lead to a loss of investor confidence in PFIX's management.

NEW YORK--(BUSINESS WIRE)-- Simplify Asset Management Inc. announces that the previously disclosed net asset value (NAV) per share of PFIX on October 27, 2022 contained an error of greater than 1%. PFIX's NAV was restated effective as of October 28, 2022.

ETF Name		Ticker (NYSE Arca)		Revised		Original		Adjustment
Simplify Interest Rate Hedge ETF		PFIX		$75.0216		$75.7968		1.03%

The NAV adjustment is a result of an error in calculating the NAV for PFIX.

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.

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 funds 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 use of derivative instruments and futures contracts Involves risks different from, or possibly greater than, the risks associated with investing directly in securities. 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 or futures contract 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 invests in ETFs (Exchange-Traded Funds) and entails higher expenses than if invested into the underlying ETF directly. The Fund will invest in fixed income ETFs that invest in debt securities of any credit quality or maturity. Fixed income ETFs may invest in securities with credit quality below investment grade (commonly referred to as “junk bonds”) which can be volatile, hard to price and have less liquidity.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005472/en/

MEDIA CONTACT:

Chris Sullivan

MacMillan Communications

(212) 473-4442

chris@macmillancom.com

Source: Simplify Asset Management

FAQ

What was the reason for the NAV correction for PFIX?

The NAV correction for PFIX was due to an error exceeding 1% in its original calculation.

What is the new NAV for the Simplify Interest Rate Hedge ETF (PFIX)?

The new NAV for PFIX is $75.0216, effective October 28, 2022.

When was the PFIX NAV error disclosed?

The PFIX NAV error was disclosed on October 27, 2022.

What was the original NAV for PFIX before the restatement?

The original NAV for PFIX was $75.7968 before being revised.

What is the ticker symbol for Simplify Interest Rate Hedge ETF?

The ticker symbol for the Simplify Interest Rate Hedge ETF is PFIX.