Global Asset Manager with Insurance Pedigree Delivers Risk-Managed ETF Lineup
Allianz Investment Management LLC (AllianzIM), a wholly owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), today introduces its new exchange-traded fund (ETF) product line with the launch of the AllianzIM U.S. Large Cap Buffer10 Apr ETF (NYSE Arca: AZAA) and the AllianzIM U.S. Large Cap Buffer20 Apr ETF (NYSE Arca: AZBA).
AllianzIM Buffered Outcome ETFs are designed to expand the risk management solutions available to investors as prevailing market dynamics and declining appetite for risk create new challenges. These ETFs are built to deliver outcome-based solutions to investors by utilizing buffers, caps and index-linked returns that may provide investors a greater degree of confidence.
AllianzIM Buffered Outcome ETFs will leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities, managing over $145 billion in hedged assets and serving as a bridge between insurance and capital markets. Offering a new way to help investors seek to mitigate risk and reduce volatility, these new ETFs will complement Allianz Life’s suite of annuity and life insurance products.
"Our ETF offerings seek to provide a clearer path of return expectations by providing a level of downside protection over a defined time period," said Brian Muench, president of AllianzIM. "The ability to remain invested in broad based equities while reducing downside risk in an ETF vehicle is creating strong interest from financial professionals."
Now offering lower-cost buffered outcome ETFs, the AllianzIM ETFs seek to match the returns of the S&P 500 Price Return Index up to a stated Cap, while providing downside protection (through the Buffer) against the first 10% and 20% of S&P 500 Price Return Index losses for AZAA and AZBA, respectively.
"Allianz Life and AllianzIM have a long track record of risk management experience that is core to our businesses," said Muench. "AllianzIM is uniquely equipped to manage outcome-based ETFs and help investors address their risk management needs."
AllianzIM’s Buffered Outcome ETFs are offered at an expense ratio of 74 basis points, with portfolio management conducted in-house by AllianzIM. The initial outcome period of the ETFs will be June 1, 2020, to March 31, 2021; thereafter, subsequent outcome periods are expected to be 12-months with each outcome period reflecting a new stated cap commensurate with prevailing market conditions, allowing investors to remain invested with downside protection.
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 call 877.429.3837 or download and review the prospectus. Read the prospectus carefully before investing.
The Funds seek to deliver returns that match, at the end of a specified one-year 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. AllianzIM U.S. Large Cap Buffer 10 Apr ETF and AllianzIM U.S. Large Cap Buffer 20 Apr ETF 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.
Issued by Allianz Investment Management LLC. 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.
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 in 2020, 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 2019, Allianz Life provided additional value to its policyholders via distributions of more than $10.4 billion. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with over 147,000 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.
Gregory FCA for AllianzIM