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Simplify Launches No K-1 Actively Managed Commodity Strategy ETF (Hard)
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Fund is designed to be a long-only commodity replacement, while still providing the enhancements of a systematic long/short managed futures strategy
March 28, 2023
NEW YORK, (BUSINESS WIRE) – Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”), is today announcing the launch of the Simplify Commodities Strategy No K-1 ETF (NYSE Arca: HARD).
HARD is designed to play a number of key roles in an investor’s portfolio, including as both a core commodity holding and as an inflation hedging vehicle.
“The role that commodities can play in hedging portfolios against strong inflation has long been understood by investors, but just as well understood is the way in which long-only commodity strategies tend to underperform over long time horizons. With HARD, we’ve designed a means by which investors can access commodity exposure for both the short- and the long-term, with the potential to perform well during periods of inflation as well as in more typical market environments,” said David Berns, PhD, Simplify’s Chief Investment Officer and Cofounder.
HARD is actively managed by the team at Altis Partners, a commodity trading advisor with more than 20 years of experience, and has been built around two underlying models of ‘price trend’ and ‘fundamental reversion,’ which balance one another while at the same time long/short forecasting models naturally optimize curve position for contango and/or backwardation. Commodity futures included in the strategy include crude oil, RBOB, heating oil, natural gas, copper, gold, silver, corn, wheat, soybeans, and soybean oil.
“We’re pleased to be launching HARD, as we see this fund meeting two important needs for investors and advisors: access to an enhanced core commodity exposure and a powerful inflation hedge,” added David. “Those aspects, in combination with the fact that the fund will never deliver a K-1 have us very much looking forward to educating the marketplace about this highly differentiated approach.”
HARD joins the Simplify Managed Futures Strategy ETF (CTA) among the firm’s commodity-focused offerings.
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.
HARD is designed to play a number of key roles in an investor’s portfolio, including as both a core commodity holding and as an inflation hedging vehicle.
“The role that commodities can play in hedging portfolios against strong inflation has long been understood by investors, but just as well understood is the way in which long-only commodity strategies tend to underperform over long time horizons. With HARD, we’ve designed a means by which investors can access commodity exposure for both the short- and the long-term, with the potential to perform well during periods of inflation as well as in more typical market environments,” said David Berns, PhD, Simplify’s Chief Investment Officer and Cofounder.
HARD is actively managed by the team at Altis Partners, a commodity trading advisor with more than 20 years of experience, and has been built around two underlying models of ‘price trend’ and ‘fundamental reversion,’ which balance one another while at the same time long/short forecasting models naturally optimize curve position for contango and/or backwardation. Commodity futures included in the strategy include crude oil, RBOB, heating oil, natural gas, copper, gold, silver, corn, wheat, soybeans, and soybean oil.
“We’re pleased to be launching HARD, as we see this fund meeting two important needs for investors and advisors: access to an enhanced core commodity exposure and a powerful inflation hedge,” added David. “Those aspects, in combination with the fact that the fund will never deliver a K-1 have us very much looking forward to educating the marketplace about this highly differentiated approach.”
HARD joins the Simplify Managed Futures Strategy ETF (CTA) among the firm’s commodity-focused offerings.
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.
