Simplify Asset Management Launches Simplify Opportunistic Income ETF, Offering Active Credit Strategy for Enhanced Income Generation 

Simplify Asset Management, a leading provider of Exchange Traded Funds (ETFs), has announced the launch of their latest offering, the Simplify Opportunistic Income ETF (NYSE Arca: CRDT). This new fund introduces an actively managed credit strategy that focuses on security selection within high yield, investment grade, and distressed debt markets. Asterozoa Capital Management, will serve as the sub-advisor for CRDT.

The management team at Asterozoa Capital Management will implement a proprietary multi-step investment process to oversee CRDT. This process combines macroeconomic analysis, quantitative methods, and fundamental research to achieve the fund’s primary objective of generating current income, with long-term capital appreciation as a secondary goal. To effectively manage interest rate and credit sensitivities, CRDT will employ a dynamic macro hedging overlay using instruments such as interest rate swaps, U.S. Treasury futures, and CDX.

In today’s volatile fixed income landscape, investors and advisors face numerous challenges in building and maintaining income-generating portfolios. According to Dr. David Berns, Simplify’s Chief Investment Officer and Co-Founder, active management plays a crucial role in identifying income and growth opportunities while minimizing risks and correlations that can emerge unexpectedly, causing significant damage to unhedged, passive bond portfolios. Dr. Berns expressed his excitement about the launch of CRDT, highlighting its ability to provide a hedge fund-like strategy driven by active security selection without the associated drawbacks such as complex tax forms, restrictive lockups, and high fees. He believes that CRDT represents a substantial upgrade for investors seeking effective current income solutions.

The introduction of the Simplify Opportunistic Income ETF comes at a time when investors are actively seeking income-generating strategies in a dynamic market environment. Simplify aims to address these demands by offering a unique combination of active management, comprehensive risk management measures, and a strong focus on income generation. By partnering with Asterozoa Capital Management, a highly skilled alternative manager, Simplify demonstrates its commitment to delivering innovative investment solutions that cater to the evolving needs of investors.

Investors and advisors now have the opportunity to access CRDT, a well-diversified credit portfolio with a keen emphasis on security selection. The active management approach, coupled with the dynamic macro hedging overlay, aims to provide consistent income generation while actively managing risk factors. Simplify believes that CRDT represents a significant advancement for investors seeking to enhance their income strategies.

As the quest for income continues, Simplify Asset Management remains dedicated to developing and introducing investment solutions that meet the diverse needs of investors in various market conditions. The launch of CRDT underscores their commitment to providing investors with an enhanced current income solution that incorporates active management expertise and effective risk mitigation measures. With the Simplify Opportunistic Income ETF, investors have the potential to benefit from a powerful strategy without the common drawbacks associated with traditional hedge fund approaches.

Furthermore, the launch of the Simplify Opportunistic Income ETF aligns with Simplify Asset Management’s ongoing commitment to developing investment solutions that meet the needs of investors in various market conditions.

The Simplify Opportunistic Income ETF provides investors and advisors with a diversified credit portfolio that emphasizes security selection. The active management approach, combined with the dynamic macro hedging overlay, is designed to deliver consistent income generation while actively managing risk factors. This combination of active management and risk mitigation measures aims to enhance the potential for generating attractive risk-adjusted returns.

With the launch of CRDT, investors can potentially benefit from a powerful strategy without the common drawbacks associated with traditional hedge fund approaches. The ETF structure offers investors increased transparency, liquidity, and flexibility, as well as the ability to trade throughout the day at market prices. By incorporating active management within an ETF structure, Simplify Asset Management aims to provide investors with an accessible and efficient way to access a differentiated credit strategy.