Harley Bassman questioned Simplify’s growth, fees and oversight, while the firm called his letter a one-sided account from a former employee.
A dispute between bond veteran Harley Bassman and Simplify Asset Management is drawing attention to how ETF firms measure growth, structure fees and oversee funds.
In a letter to shareholders, Bassman said he was deeply concerned about Simplify’s management and oversight. He questioned whether the firm was overstating its expansion, charging investors fees it should not and changing strategies to make what he described as idiosyncratic bets. He is also suing Simplify over compensation, a claim the company disputes.
Simplify has more than $13 billion in assets under management across more than 40 funds. About 38% of that total comes from other Simplify ETFs, according to Bloomberg data. Bassman called the structure “Russian-doll stacking.”
Simplify CEO Paul Kim described the letter as mostly a one-sided narrative from a former employee. He said the firm has grown by helping clients meet portfolio goals, and that its affiliated funds are mainly used for cash management or fund-of-funds strategies.
The dispute highlights the challenge investors face when ETF assets, fees and strategies become harder to evaluate at a glance.
