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Simplify Launches Actively Managed Emerging Markets Bond ETF: GAEM
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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
August 13, 2024
NEW YORK – 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. With many years of experience navigating Latin American economies and financial markets, GAM will conduct fundamental, economic, and quantitative research utilizing their deep expertise in the region.
“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 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).
More information on GAEM.
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.
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. With many years of experience navigating Latin American economies and financial markets, GAM will conduct fundamental, economic, and quantitative research utilizing their deep expertise in the region.
“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 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).
More information on GAEM.
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.
