Net Asset Value Restatement for Simplify Multi-QIS Alternative ETF (QIS)

Rhea-AI Summary

Simplify Asset Management has announced a restatement of the net asset value (NAV) for its Multi-QIS Alternative ETF (NYSE Arca: QIS). The NAV per share for November 26, 2024, was revised from $24.87 to $24.61, representing a 1.03% downward adjustment. The correction was necessary due to an incorrect swap security price.

Positive

• None.

Negative

• NAV adjustment downward by 1.03% due to pricing error
• Need for restatement indicates internal control issues in pricing mechanism

Insights

Financial Analyst

The 1.03% downward NAV restatement for the Simplify Multi-QIS Alternative ETF represents a significant pricing correction due to a swap security valuation error. This type of restatement, while not uncommon in complex ETF structures, impacts existing shareholders who traded at the incorrect NAV on November 26. The adjustment from $24.87 to $24.61 affects the fund's performance tracking and could potentially lead to compensation requirements for affected investors who executed trades at the incorrect price. Such pricing discrepancies can also impact the ETF's tracking error and market making efficiency.

NEW YORK--(BUSINESS WIRE)-- Simplify Asset Management Inc. announces that the previously disclosed net asset value (NAV) per share of the Simplify Multi-QIS Alternative ETF (NYSE Arca: QIS) on November 26, 2024, has been restated effective November 27, 2024, as follows:

ETF Name	Ticker (NYSE Arca)	Date	Revised	Original	Adjustment
Simplify Multi-QIS Alternative ETF	QIS	11/26/2024	24.61	24.87	-1.03%

The NAV adjustment is a result of an incorrect swap security price.

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 fund involves risk, including possible loss of principal. Past performance does not guarantee future results.

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 earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience.

Simplify ETFs are distributed by Foreside Financial Services, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241129213594/en/

MEDIA:

Chris Sullivan

Craft & Capital

chris@craftandcapital.com

Source: Simplify Asset Management Inc.

FAQ

What was the NAV restatement amount for Simplify Multi-QIS Alternative ETF (QIS) on November 26, 2024?

The NAV was restated from $24.87 to $24.61, representing a 1.03% downward adjustment.

Why did Simplify Multi-QIS Alternative ETF (QIS) restate its NAV in November 2024?

The NAV restatement was necessary due to an incorrect swap security price.

When did the NAV restatement for Simplify Multi-QIS Alternative ETF (QIS) become effective?

The NAV restatement became effective on November 27, 2024.