Simplify Launches Opportunistic Income ETF (CRDT)
Actively managed, opportunistic credit strategy focuses on security selection within high-yield, investment grade, and distressed debt; designed to provide compelling current income opportunities
June 27, 2023
The Fund is built around an actively managed, opportunistic credit strategy that focuses on security selection within the high yield, investment grade, and distressed debt universes. CRDT is sub-advised by Asterozoa Capital Management, a highly experienced alternative manager with deep expertise in credit and fixed income derivatives. That team will be deploying a proprietary multi-step investment process in the management of CRDT which combines macroeconomic, quantitative, and fundamental research as they seek current income, with long-term capital appreciation as a secondary objective.
Additionally, CRDT will employ a dynamic macro hedging overlay, typically in the forms of interest rate swaps, U.S. Treasury futures, and CDX, to help mitigate drawdowns related to interest rate and credit sensitivities.
“The ongoing volatility in the fixed income universe presents a host of challenges to investors and advisors as they seek to build and maintain the income generating component of their respective portfolios. Proven, active management can play a major role in not only identifying opportunities for income and growth but also minimizing risks and correlations, which can emerge with little to no warning and have a hugely destructive impact on an unhedged, passive bond portfolio,” said David Berns, PhD, Simplify’s Chief Investment Officer and Cofounder.
“We are very excited to be launching CRDT into the current market as this is a means for all investors to add a true hedge fund-like strategy powered by active security selection but with no K-1s, lockups or high fees, which are so often associated with this kind of approach. The search for income never ends, and with CRDT, we believe we’re providing a significant upgrade for investors seeking effective current income solutions,” added Berns.
More information on CRDT.
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.