Simplify Introduces the Simplify Kayne Anderson Energy and Infrastructure Credit ETF (KNRG)
Actively managed ETF seeks to deliver attractive yields by investing across credit instruments of energy and infrastructure companies
Kayne Anderson, KNRG’s subadvisor, brings decades of public and private market investing experience in this space
KNRG is actively managed by the team at Kayne Anderson, which brings decades of experience in managing private and public market investments in energy and infrastructure. The Fund seeks to deliver attractive monthly income by investing in the credit instruments of energy and infrastructure companies, which can include bonds, as well as notes, loans and hybrid or preferred shares. “We are excited to partner with Simplify to bring together our energy infrastructure expertise with an established ETF platform to offer investors what we believe is a unique and compelling income-focused credit product offering,” said Mike Schimmel, Portfolio Manager at Kayne Anderson.
“Energy and infrastructure stand to benefit from a number of favorable tailwinds, including the growing push for reshoring, increased public sector infrastructure spending, and the continued digitization of our economy, which is incredibly energy-intensive,” said David Berns, Chief Investment Officer and CO-Founder of Simplify. “We have sought to build a product that provides a source of attractive monthly yield based on a portfolio overseen by a best-in-class manager.”
“In addition, energy and infrastructure credits like those making up the holdings of this new fund have had a meaningfully lower historical rate of defaults than non-energy or infrastructure instruments of similar credit quality,” added Berns.
KNRG joins a Simplify ETF lineup that includes a number of first-of-their-kind equity and income exposures. For more information, please visit https://www.simplify.us/.
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.
ABOUT KAYNE ANDERSON
Kayne Anderson, founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure, and energy. With a team defined by an entrepreneurial and resilient culture, Kayne Anderson’s investment philosophy is to pursue cash flow-oriented niche strategies where knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages
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 or Summary 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 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.
While the option overlay is intended to improve the Fund’s performance, there is no guarantee that it will do so. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.
Credit Risk. The Fund will lose money if the issuer or guarantor of a credit instrument goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. The value of a security may decline if there are concerns about an issuer’s ability or willingness to make interest and or principal payments.
Interest Rate Risk. The value of the Fund’s investment in credit securities will fall when interest rates rise. The effect of increased interest rates is more pronounced for any intermediate-term or longer-term obligations owned by the Fund.
Industry Concentration Risk: The Fund focuses its investments in securities of a group of two industries. Economic, legislative or regulatory developments may occur that significantly affect the group of industries.
Simplify ETFs are distributed by Foreside Financial Services, LLC. Foreside and Simplify are not related.
© 2025 Simplify ETFs. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250528625608/en/
Media Contact:
Rob Jesselson
Craft & Capital
rob@craftandcapital.com
Source: Simplify Asset Management Inc.
