AllianzIM Announces New Upside Caps for April Buffered Outcome ETFs

Rhea-AI Summary

Allianz Investment Management LLC introduces new upside caps for its Buffered Outcome ETFs, AZAA and AZBA, targeting the S&P 500 Index. The AZAA offers a 10% buffer with a 13.00% gross cap, while the AZBA provides a 20% buffer and a 6.45% gross cap. Both ETFs aim to provide downside protection and are noted as the lowest cost defined outcome ETFs available. AllianzIM emphasizes the importance of risk mitigation in the current uncertain market landscape, leveraging proprietary hedging capabilities managing over $150 billion in assets.

Positive

• Introduction of upside caps for AZAA and AZBA aimed at improving investor returns.
• Both ETFs are the lowest cost defined outcome ETFs on the market.
• Focus on risk mitigation amidst market uncertainties appeals to cautious investors.

Negative

• Potential risks due to market uncertainties like rising bond yields and inflation.
• Investors may lose their entire investment, highlighting a significant risk.

Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life^®), announces new upside caps for the April series of its Buffered Outcome ETFs suite: the AllianzIM U.S. Large Cap Buffer10 Apr ETF (NYSE: AZAA) and the AllianzIM U.S. Large Cap Buffer20 Apr ETF (NYSE: AZBA).

Ticker		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		13.00% Gross / 12.26% Net		April 1, 2021		March 31, 2022
AZBA AllianzIM U.S. Large Cap Buffer20 Apr ETF		S&P 500		20% Gross / 19.26% Net		6.45% Gross 5.71% Net		April 1, 2021		March 31, 2022

AllianzIM Buffered Outcome ETFs debuted in June 2020 and are designed to provide exposure to the S&P 500 Price Return Index up to a stated cap, while aiming to buffer investors from losses on the downside. AllianzIM currently offers two strategies on the S&P 500 Index: a 10% buffer and 20% buffer, each with quarterly offerings and 12-month outcome periods. The funds are the lowest cost defined outcome ETFs on the market today and consistently trade with some of the tightest spreads among peers in the category.²

“Despite markets reaching record highs to start 2021, investing at these levels can pose even further risks to investors amid continued uncertainties across equities and bonds, including rising bond yields and growing inflationary pressures,” notes Brian Muench, President of AllianzIM. “AllianzIM Buffered Outcome ETFs allow provide investors a way to enter the market and stay invested with a level of risk mitigation.”

AllianzIM Buffered Outcome ETFs leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities. AllianzIM manages its ETF line-up on a proprietary in-house hedging platform with over $150 billion in hedged assets. Offering a new way to help investors seek to mitigate risk and reduce volatility, these new ETFs complement Allianz Life’s suite of annuity and life insurance products.

“If the pandemic has taught us anything, it’s that there is inherent uncertainty all around us and value in paving a way toward a potentially more secure future,” explains Johan Grahn, Head of ETF Product Strategy at AllianzIM. “As investors look for a better 2021 and beyond, they can rely on the strength and experience of AllianzIM to help them manage the risk in their portfolios.”

For more information on the AllianzIM Buffered Outcome ETF suite, please visit www.allianzIM.com.

¹ Gross 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.allianzIM.com, provides important fund information as well as information relating to the potential outcomes of an investment in the Fund on a daily basis.

² Based on information from ETF Database as of 3.26.21 that includes expense data and other descriptive information for all Buffered ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Additionally based on information from AllianzIM as of the week of 3.15.21 based on market data sourced from NYSE that demonstrates averages by issuer.

Investing involves risk including possible loss of principal.

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.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 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 Buffer10 Apr ETF and AllianzIM U.S. Large Cap Buffer20 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.

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 2020, Allianz Life provided additional value to its policyholders via distributions of more than $10.1 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 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.

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FAQ

What new features have been introduced for AllianzIM ETFs AZAA and AZBA in April 2021?

New upside caps have been introduced for the AllianzIM U.S. Large Cap Buffer10 (AZAA) and Buffer20 (AZBA) ETFs, enhancing their growth potential.

What are the buffer and cap details for AZAA and AZBA?

AZAA offers a 10% buffer with a 13.00% gross cap, while AZBA provides a 20% buffer with a 6.45% gross cap.

Why are AllianzIM Buffered Outcome ETFs considered low-cost?

They are noted as the lowest cost defined outcome ETFs in the market, providing a competitive edge to investors.

What risks do investors face with AllianzIM ETFs?

Investors may face significant risks due to market uncertainties such as rising bond yields and inflation, potentially losing their entire investment.

When does the outcome period start and end for AZAA and AZBA?

The outcome period for both AZAA and AZBA starts on April 1, 2021, and ends on March 31, 2022.