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Simplify Adds to Its Growing Lineup of Fixed Income Solutions with The Launch of The Simplify National Muni Bond ETF (NMB)
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Actively managed fund combines three sources of potential return: muni bond coupons, active muni bond trading & option-writing income
September 10, 2024
NEW YORK – Simplify Asset Management (“Simplify”), an innovative provider of Exchange Traded Funds (“ETFs”), is today adding a distinct actively managed municipal bond ETF to its growing lineup of income-focused strategies with the launch of the Simplify National Muni Bond ETF (NMB).
NMB is sub-advised by Foundation Credit, a specialist credit investment firm that has more than a decade of experience managing portfolios for institutional investors. This new fund employs an actively managed municipal bond strategy, with the goal of achieving attractive (tax-free) income through municipal bond coupons while simultaneously generating (taxable) gains by opportunistically trading undervalued municipal securities. Additionally, NMB incorporates a risk-managed, income-generating options selling strategy that involves selling option spreads across a variety of instruments, including equity, fixed income, and commodity indices and ETFs.
“Rather than simply allowing muni investors to clip coupons, NMB is built to combine three sources of potential return: the yields from the muni bonds themselves, opportunistic investments in securities overlooked by the traditional passive indices, and the income generated by the option-writing strategy,” said David Berns, CIO and cofounder of Simplify. “It’s a capital efficient means for investors to stack a number of different return sources without requiring additional investment outlay.”
“This combination of taxable and tax-free income sources can result in after-tax yields that far exceed those of national municipal bond indexes. NMB is a powerful new tool for investors and we’re very pleased to be bringing it to market,” added David Berns.
NMB is the latest addition to Simplify’s lineup of fixed income solutions, headlined by the $1.2 billion Simplify MBS ETF (MTBA) and the Simplify Short Term Treasury Futures Strategy ETF (TUA). Overall, the Simplify fund lineup is fast approaching the $6 billion AUM mark as investors have been drawn to the firm’s highly differentiated approaches.
More information on NMB.
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.
NMB is sub-advised by Foundation Credit, a specialist credit investment firm that has more than a decade of experience managing portfolios for institutional investors. This new fund employs an actively managed municipal bond strategy, with the goal of achieving attractive (tax-free) income through municipal bond coupons while simultaneously generating (taxable) gains by opportunistically trading undervalued municipal securities. Additionally, NMB incorporates a risk-managed, income-generating options selling strategy that involves selling option spreads across a variety of instruments, including equity, fixed income, and commodity indices and ETFs.
“Rather than simply allowing muni investors to clip coupons, NMB is built to combine three sources of potential return: the yields from the muni bonds themselves, opportunistic investments in securities overlooked by the traditional passive indices, and the income generated by the option-writing strategy,” said David Berns, CIO and cofounder of Simplify. “It’s a capital efficient means for investors to stack a number of different return sources without requiring additional investment outlay.”
“This combination of taxable and tax-free income sources can result in after-tax yields that far exceed those of national municipal bond indexes. NMB is a powerful new tool for investors and we’re very pleased to be bringing it to market,” added David Berns.
NMB is the latest addition to Simplify’s lineup of fixed income solutions, headlined by the $1.2 billion Simplify MBS ETF (MTBA) and the Simplify Short Term Treasury Futures Strategy ETF (TUA). Overall, the Simplify fund lineup is fast approaching the $6 billion AUM mark as investors have been drawn to the firm’s highly differentiated approaches.
More information on NMB.
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.
