Simplify Launches Actively Managed Emerging Markets Bond ETF: GAEM
13 Agosto 2024 - 8:45AM
Business Wire
Gamma Asset Management serves as the Fund’s subadvisor; GAEM
will focus on Latin American issuers, providing an important
diversification tool for income-focused investors
Simplify Asset Management (“Simplify”), an innovative provider
of Exchange Traded Funds (“ETFs”), is today announcing the launch
of the firm’s first Emerging Markets fixed income ETF: the Simplify
Gamma Emerging Market Bond ETF (NYSE Arca: GAEM).
GAEM is an actively managed ETF designed primarily to provide
exposure to Latin American issuers that, in the eyes of the Fund’s
management team, display favorable investment fundamentals. Gamma
Asset Management LLC (GAM) serves as the Fund’s subadvisor and has
approximately $5 billion in assets under management in Latin
America. Their portfolio management team brings significant
expertise in investing in the LatAm region and will use
fundamental, economic, and political analysis to seek out
securities with the most favorable return and risk profiles.
“In looking at the legacy passive vehicles through which many
investors gain EM debt exposure, it became very clear that their
underlying indexes target the largest issuers from the biggest
economies, leaving smaller economies, particularly among the Latin
American nations, underrepresented. With GAEM, we’ve constructed an
actively managed approach through which advisors and investors can
access a range of under-followed securities with attractive
yields,” said Simplify’s CIO David Berns.
“GAEM will provide exposure across sovereigns, corporates, US.
dollar and local currency bonds; and it’s also worth noting that EM
bonds from Latin America are issued under New York law, with
identical protections as bonds from U.S.-based issuers,” added
David.
The Simplify team points to a number of use cases for GAEM,
including as a portfolio diversifier (across geographies,
currencies, and issuer type), as well as providing the potential
for yields equal to or higher than those of U.S. high yield bond
indexes.
GAEM joins a Simplify fund lineup that passed the $5 billion AUM
mark in the first half of 2024 and has recently been expanding its
lineup to include a broader range of fixed income and Emerging
Market exposures, such as the March launch of the Simplify Tara
India Opportunities ETF (IOPP).
For more information on GAEM, please visit:
https://www.simplify.us/etfs/gaem-simplify-gamma-emerging-market-bond-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.
The lower the credit quality, the more volatile the performance
will be. When junk bonds sell off, the lowest-rated bonds are
typically hit hardest known as blow-up risk. Likewise, the riskiest
bonds typically rise fastest in a bull market however these
investments that don't have a credit rating are typically the most
volatile, hard to price and the least liquid.
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 Fund's investment in fixed income securities is subject
to credit risk (the debtor may default) and prepayment risk (an
obligation paid early) which could cause its share price and total
return to be reduced. Typically, as interest rates rise the value
of bond prices will decline and the fund could lose value.
Fixed Income Securities Risk: When the Fund invests in fixed
income securities, the value of your investment in the Fund will
fluctuate with changes in interest rates. Typically, a rise in
interest rates causes a decline in the value of fixed income
securities owned by the Fund. In general, the market price of fixed
income securities with longer maturities will increase or decrease
more in response to changes in interest rates than shorter-term
securities.
Emerging Markets Risk: Investing in emerging markets involves
not only the risks described below with respect to investing in
foreign securities, but also other risks, including exposure to
economic structures that are generally less diverse and mature,
limited availability and reliability of information material to an
investment decision, and exposure to political systems that can be
expected to have less stability than those of developed
countries.
Simplify ETFs are distributed by Foreside Financial Services,
LLC. Foreside and Simplify are not related.
© 2024 Simplify ETFs. All rights reserved.
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Chris Sullivan Craft & Capital chris@craftandcapital.com