Simplify Asset Management Partners with Molokai Management to Unlock International ETF Distribution, Targeting Asia's $1.7 Trillion Market

NEW YORK & SYDNEY--(BUSINESS WIRE)--Simplify Asset Management Inc. ("Simplify"), a provider of innovative options-based Exchange Traded Funds (ETFs), today announced a strategic partnership with Molokai Management Pty Ltd ("Molokai"), a specialist in tax-efficient investment structures. Under the agreement, Molokai will serve as the exclusive international distribution partner for Simplify's suite of ETFs, with a primary focus on penetrating the rapidly expanding Asian market. This collaboration is designed to overcome the significant tax and operational barriers that have historically limited access for US-based asset managers seeking to serve international investors.

The Strategic Imperative: Tapping into Asia's Growth

The Asia Pacific region represents a vast and compelling opportunity for US asset managers, yet significant structural obstacles have historically constrained market penetration. This partnership directly addresses these long-standing challenges, unlocking a new chapter of growth for US-domiciled investment products in the region.

The Asia Pacific ETF market is currently valued at approximately $1.7 trillion and is projected to grow at a rate of 12% over the next five years. Despite this immense potential, US asset managers currently hold only about 10.5% of the market share, equivalent to approximately $183 billion in assets. This under-penetration is the direct result of several key barriers:

• Punitive US Tax Withholding: Investors in key Asian financial hubs like Singapore and Hong Kong, which lack tax treaties with the United States, face a 30% withholding tax on dividends from US-listed ETFs, significantly eroding returns.
• Dominance of Local Providers: Local and regional ETF providers have a natural advantage due to deep regional expertise, favorable regulatory environments, and culturally aligned marketing strategies.
• Operational Hurdles: US firms often struggle with a lack of localized, native-language marketing and research, low awareness among local financial advisors, and limited availability of their products on regional investment platforms.

This strategic alliance is structured to systematically dismantle these barriers, with Molokai providing the critical gateway for Simplify to effectively compete and thrive in the Asian market.

Molokai's Differentiated Solution: A Gateway to Global Capital

Molokai offers more than traditional distribution; it provides a strategic, tax-advantaged framework that fundamentally changes the value proposition for Asian investors seeking access to US assets. By neutralizing the critical tax disadvantages faced by US products, Molokai creates a level playing field for Simplify's innovative strategies.

At the core of this partnership is the Molokai Global Gateway Fund, an Australian-domiciled, 100% tax-free investment structure. Supported by a Private Tax Ruling from the Australian Taxation Office, this innovative vehicle generates "Tax Alpha" by eliminating taxes on gains and earnings for international investors. As part of the agreement, Molokai will deliver a comprehensive suite of services to Simplify, including:

• Tax-Efficient Access: Molokai will wrap Simplify's premier US-domiciled ETFs within its Global Gateway structure, offering a seamless and tax-exempt solution for international distribution.
• Targeted Capital Formation: Actively deploying Molokai's extensive network across Asia to drive capital inflows into Simplify's strategies from institutional and wholesale investors.

Leadership from both firms commented on the strategic importance of the partnership.

“The opportunity across Asia is enormous, but for years, US asset managers have been on the sidelines, unable to overcome the structural tax and distribution challenges,” said Paul Kim, CEO of Simplify. “Partnering with Molokai changes the game entirely. Their innovative, tax-free gateway provides the missing link, allowing us to bring our sophisticated, options-based strategies to a vast new audience of investors. We are thrilled to work with the Molokai team to unlock this next phase of our global growth.”

Michael Mills, Founder and CEO of Molokai, added, “Having spent over 20 years in Asia, I’ve seen firsthand the demand for high-quality US investment products and the frustration with the barriers that prevent efficient access. We designed the Molokai Global Gateway specifically to solve this problem. Our unique, tax-free structure is built to enhance investor returns and provide unparalleled access to premier US assets. We are proud to partner with an innovator like Simplify and connect the dynamic Asian investment community with their world-class ETF lineup.”

About Molokai

Molokai's vision is to enhance investor returns through its proven, tax-free investment gateway into thousands of US funds and assets. Founded by Michael Mills, a financial services veteran with 25 years of experience, including two decades specializing in alternative investments in Asia, Molokai offers a differentiated solution for global investors. Its flagship product, the Molokai Global Gateway, is an Australian-regulated fund structure that eliminates tax on gains and earnings, providing efficient, unparalleled access to US investment opportunities.

About Simplify Asset Management Inc.

Simplify was founded by a team of industry veterans in 2020 to make institutional-grade alternative strategies available to all investors through the low-cost and transparent ETF vehicle. With over $12 billion in assets under management as of 12/19/25 across more than 30 ETF products, 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.

IMPORTANT INFORMATION

Simplify Asset Management Inc. is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Simplify Asset Management Inc. and its representatives are properly licensed or exempt from licensure. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level of skill or ability. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This content is not intended to provide investment, tax, or legal advice.

This content is solely for informational purposes and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. These materials are made available on an “as is” basis, without representation or warranty. The information contained in these materials has been obtained from sources that Simplify Asset Management Inc. believes to be reliable, but accuracy and completeness are not guaranteed. This information is only current as of the date indicated and may be superseded by subsequent market events or for other reasons. Neither the author nor Simplify Asset Management Inc. undertakes to advise you of any changes in the views expressed herein.