Newfound Research and Simplify Asset Management Announce Partnership and Launch of New Line of Model Alpha Structured ETF Portfolios

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Direct and effective uses of diversification and leverage allow new open architecture portfolios to gain exposure to assets that can improve portfolio returns without significantly increasing portfolio risk.

NEW YORK, January 12, 2022– (COMMERCIAL THREAD) –Simplify asset management (“Simplify”) and New research (“Newfound”) today announced a new partnership designed to provide investors with a modern approach to navigating modern markets. As part of their combined efforts, Newfound launched the Alpha Structural Series of ETF Model Portfolios powered by Simplify’s innovative family of exchange-traded funds.

The initial Structural Alpha suite includes four portfolios: Conservative, Conservative Growth, Moderate Growth and Growth. Portfolios are built using an open architecture approach, including funds from various vendors.

“Investors face a very real dilemma, as low interest rates continue to push many to take on higher levels of risk. Alternatives may offer a solution but are often abandoned long before they begin to provide the expected benefits of the wallet. Investors need a structural structure. benefit that takes a traditional portfolio and uses capital efficiency to enhance diversification and protection against tail risks, ”said Corey Hoffstein, co-founder and chief investment officer of Newfound.

“This combination is the very essence of structural alpha: the way a portfolio is built rather than a particular trading strategy. This is an idea that I have been pursuing for some time, but the right tools were not yet available to put this idea into practice. Simplify’s ETFs have changed all that and provide many building blocks that the Structural Alpha approach needs to go from an idea to a powerful solution, ”he added.

“Corey’s work on risk management is second to none, and we are delighted to partner with him and Newfound on these new model portfolios,” said Paul Kim, Co-Founder and CEO of Simplify. “One of our main goals has always been to provide investors and advisors with a comprehensive toolkit so they can build smarter portfolios, navigate tough markets, seek out convex-related opportunities and hedge. against significant extreme risks. With the deployment of the structural alpha suite, all of these tools and approaches are combined and made available into out-of-the-box, well-built solutions that can have a significant impact in helping investors achieve their investment goals at short and long term. “

The Simplify and Newfound team further highlights four key characteristics of these new models:

  • Capital efficiency. Building a capital efficient core for each portfolio allows models to achieve the same strategic positioning with a smaller allocation, freeing up capital for greater diversification.

  • Convexity. Hedges are put in place for equity, interest rate and volatility markets, increasing the resilience of the portfolio and allowing for investment in a position of strength during turbulent markets.

  • Benefits of ETFs as Portfolio Building Blocks. ETFs offer unprecedented financial and tax efficiency, two of the most important factors in generating long-term returns.

  • No strategist fees. Access to the models is free, allowing investors and advisors to operate the various models in a scalable and cost effective manner.

For more information on the Structural Alpha suite, please visit this site.

ABOUT SIMPLIFY ASSET MANAGEMENT INC

Simplify Asset Management Inc. is a registered investment advisor founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of option-based strategies. By taking into account the real needs of investors and market behavior, as well as the non-linear power of options, our strategies deliver the tailored portfolio results clients are looking for. For more information visit www.simplify.us.

ABOUT NEWFOUND RESEARCH

Newfound Research LLC is an investment and quantitative research firm dedicated to helping investors proactively manage investment risk through thought leadership and investment acumen. To build more resilient portfolios, we seek to diversify the areas of investment: what, how and when. For more information visit www.thinknewfound.com.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220112005310/en/

Contacts

Chris Sullivan
MacMillan Communications
(212) 473-4442
[email protected]

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