MINNEAPOLIS--(BUSINESS WIRE)--Allianz Investment Management LLC (AllianzIM), a wholly owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), today announces new upside Caps for the April series of its U.S. Large Cap Buffered Outcome Exchange Traded Funds (ETFs) suite. The series includes two funds with a twelve-month Outcome Period: AllianzIM U.S. Large Cap Buffer10 Apr ETF (NYSE Arca: AZAA) and the AllianzIM U.S. Large Cap Buffer20 Apr ETF (NYSE Arca: AZBA), as well as the AllianzIM U.S. Large Cap 6 Month Buffer10 Apr/Oct ETF (NYSE Arca: SIXO) with a six-month Outcome Period.
As equity markets remain volatile amid geopolitical tensions, high inflation, the end of easy monetary policy and the potential for an economic slowdown, AllianzIM Buffered Outcome ETFs are designed to equip investors with the tools they need to navigate these challenges over both the shorter and the longer term. AllianzIM ETFs seek to match the returns of the S&P 500 Price Return Index up to a stated Cap, while providing a level of risk mitigation through a Buffer against the first 10% or 20% of S&P 500 Price Return Index losses.
Ticker / Fund |
Index Exposure |
Buffer1 |
Cap1 |
Outcome Period Start Date |
Outcome Period End Date |
AZAA
AllianzIM U.S. Large Cap Buffer10 Apr ETF |
S&P 500 |
10% Gross / 9.26% Net |
15.00% Gross / 14.26% Net
|
April 1, 2022 |
March 31, 2023 |
AZBA
AllianzIM U.S. Large Cap Buffer20 Apr ETF |
S&P 500 |
20% Gross / 19.26% Net |
9.10% Gross 8.36% Net |
April 1, 2022 |
March 31, 2023 |
SIXO
AllianzIM U.S. Large Cap 6 Month Buffer10 Apr/Oct ETF |
S&P 500 |
10% Gross / 9.63% Net |
6.74% Gross / 6.37% Net |
April 1, 2022 |
September 30, 2022 |
“Studies indicate that Generations X, Y and Z are fiscally more conservative than their predecessors, having lived through the dotcom bubble, 2008-09 recession and COVID-19,” notes Brian Muench, president of AllianzIM. “We created AllianzIM Buffered Outcome ETFs to help investors of all risk tolerances mitigate risk, while preserving the opportunity to participate in the upside potential of the equity market.”
AllianzIM’s Buffered Outcome ETFs are offered at an expense ratio of 74 basis points, with portfolio management conducted in-house by AllianzIM. The 12-month Outcome Period of the April series ETFs will be April 1, 2022 to March 31, 2023. The 6-month Outcome Period will be April 1, 2022 to September 30, 2022. Each Outcome Period reflects a new stated Cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation. Across AllianzIM’s full suite of Buffered Outcome ETFs, investors have the option to invest in ETFs with new Caps and Buffers every three months.
“2022 has certainly been off to a volatile start,” notes Johan Grahn, Head of ETFs at AllianzIM. “And while investors grapple with geopolitical uncertainties, a hawkish Fed, and severe inflation, we are excited about the long term value proposition of our ETFs as they provide risk management solutions to both short and the long term risks and meet varying investor time horizons and risk tolerances.”
The AllianzIM Buffered Outcome ETFs seek to leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities. As part of one of the largest asset management and diversified insurance companies in the world, AllianzIM, with AUM of $16.4 billion, is powered by the same proprietary in-house hedging platform that is used among affiliates to help manage more than $145 billion in hedged assets for institutional and retail investors around the globe. Offering a new way to help investors seek to mitigate risk and reduce volatility, these Buffered Outcome ETFs complement Allianz Life’s suite of annuity and life insurance products.
For more information on AllianzIM Buffered Outcome ETFs, please visit www.allianzIM.com
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about the Fund, please visit www.allianzIM.com or call 877.429.3837. Read the prospectus carefully before investing.
The Funds seek to deliver returns that match, at the end of a specified one-year or six-month period (outcome period) the returns of the S&P 500 Price Index up to a predetermined Cap, while limiting downside losses by the amount of a specified Buffer, before fees and expenses. There is no guarantee the funds will achieve their investment objectives. You may lose your entire investment, regardless of when you purchase shares, and even if you hold shares for an entire Outcome Period. The Fund may not be suitable for all investors.
The “S&P 500 Price Return Index” (“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and Standard & Poor’s Financial Services LLC (“S&P”), and has been licensed for use by Allianz Investment Management LLC (“AllianzIM”). Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of S&P; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AllianzIM. The funds noted above are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
Distributed by Foreside Fund Services, LLC.
About Allianz Investment Management LLC
AllianzIM, a wholly owned subsidiary of Allianz Life Insurance Company of North America, is a registered investment adviser and represents the Minneapolis hub of the global Allianz Investment Management network established by Allianz SE. AllianzIM provides hedging and other derivatives-based risk management solutions through its proprietary platform.
