MINNEAPOLIS--(BUSINESS WIRE)--Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), announced today it is launching its monthly series of U.S. Large Cap Buffered Exchange Traded Funds (ETFs) suite, starting with new November funds. The two new ETFs are the AllianzIM U.S. Large Cap Buffer10 Nov ETF (NYSE Arca: NVBT) and the AllianzIM U.S. Large Cap Buffer20 Nov ETF (NYSE Arca: NVBW).
“Given the volatility in equity markets right now, we have found that investors want more options in the Buffered ETF space,” said Johan Grahn, Head of ETF Market Strategy at AllianzIM. “As these challenging conditions persist, investors increasingly understand and appreciate how Buffered ETFs can help by allowing them to participate in market upside with downside buffers against losses.”
As market conditions remain turbulent due to aggressive Federal Reserve tightening and stubborn inflation, the new funds provide additional tools for investors to mitigate risk in portfolios. AllianzIM’s Buffered ETF solutions seek to provide downside risk mitigation through a Buffer against the first 10% and 20% of market losses and offer upside potential by tracking the share price returns of the SPDR S&P 500 ETF Trust up to a stated Cap. The new November ETFs feature a twelve-month Outcome Period and initial Cap noted below.
Ticker |
Reference Asset |
Buffer1 |
Cap1 |
Outcome Period Start Date |
Outcome Period End Date |
NVBT AllianzIM U.S. Large Cap Buffer10 Nov ETF |
SPDR S&P 500 ETF Trust |
10% Gross / 9.26% Net |
26.75% Gross / 26.01% Net |
Nov. 1, 2022 |
Oct. 31, 2023 |
NVBW AllianzIM U.S. Large Cap Buffer20 Nov ETF |
SPDR S&P 500 ETF Trust |
20% Gross / 19.26% Net |
16.90% Gross / 16.16% Net |
Nov 1, 2022 |
Oct. 31, 2023 |
Offered at an expense ratio of 74 basis points, AllianzIM’s extensive suite of Buffered ETFs with six and 12-month outcome periods provide the opportunity for investors to invest in ETFs with new Caps and Buffers every month. The 12-month Outcome Period of the November series ETFs will be November 1, 2022 to October 31, 2023. Each Outcome Period reflects a new stated Cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
“Launching a monthly series helps meet investor demand in the rapidly growing Buffered ETF space,” said Brian Muench, President of ETFs and AllianzIM. “After carefully observing ETF market flows and the strong desire from investors who value pre-defined outcomes of downside mitigation in their portfolios, we decided to provide more entry points as investors tend to buy these products near the start of an Outcome Period.”
The AllianzIM Buffered 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 $18.8 billion, is powered by the same proprietary in-house hedging platform that is used among affiliates to help manage more than $149 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 ETFs complement Allianz Life’s suite of annuity and life insurance products.
For more information on the AllianzIM Buffered ETFs suite, please visit www.allianzIMetfs.com.
1Gross reflects the Cap and Buffer prior to taking into account the 0.74% expense ratio of the ETF while Net accounts for the expense ratio, but does not include brokerage commissions, trading fees, taxes and non-routine or extraordinary expenses. The Cap and Buffer experienced by investors may be different than the stated numbers. The funds’ website, at www.allianzIMetfs.com, provides important fund information as well as information relating to the potential outcomes of an investment in the Fund on a daily basis.
Investing involves risk including possible loss of principal. Investment involves risk including possible loss of principal. There is no guarantee the funds will achieve their investment objectives and may not be suitable for all investors.
Investors may lose their entire investment, regardless of when they purchase shares, and even if they hold shares for an entire Outcome Period. Full extent of Caps and Buffers only apply if held for stated Outcome Period and are not guaranteed. The Cap may increase or decrease and may vary significantly.
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.allianzIMetfs.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 share price returns of the SPDR S&P 500 ETF Trust 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.
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. AllianzIM provides hedging and other derivatives-based risk management solutions through its proprietary platform.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America, one of the FORTUNE 100 Best Companies to Work For® and one of the Ethisphere World’s Most Ethical Companies®, has been keeping its promises since 1896 by helping Americans achieve their retirement income and protection goals with a variety of annuity and life insurance products. In 2021, Allianz Life provided additional value to its policyholders via distributions of more than $10.6 billion. As a leading provider of fixed index annuities, registered index-linked annuities and fixed index universal life insurance, Allianz Life is part of Allianz SE, a global leader in the financial services industry with approximately 150,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.
