AllianzIM Introduces January Series of U.S. Large Cap Buffered Outcome ETFs

Rhea-AI Summary

Allianz Investment Management LLC has launched the AllianzIM U.S. Large Cap Buffer10 Jan ETF (AZAJ) and AllianzIM U.S. Large Cap Buffer20 Jan ETF (AZBJ), now trading on the NYSE. These ETFs are designed to match the S&P 500 Price Return Index returns up to a stated cap while providing downside risk mitigation through a buffer against the first 10% and 20% of losses for AZAJ and AZBJ, respectively. With an expense ratio of 0.74%, these ETFs aim to help investors navigate ongoing market volatility and low interest rates. The initial outcome period for both ETFs runs from January 1, 2021, to December 31, 2021.

Positive

• Launch of two new ETFs (AZAJ and AZBJ) expands AllianzIM's ETF product line.
• ETFs offer downside risk mitigation, appealing to risk-averse investors.
• Expense ratio of 0.74% is competitive for managed investment products.
• Leveraging AllianzIM's experience in risk management and hedging.
• Provides options for investors amid market volatility and low interest rates.

Negative

• No guarantee these funds will achieve their investment objectives.
• Investors may lose their entire investment regardless of holding period.

Allianz Investment Management LLC (AllianzIM), a wholly owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life^®), announces the AllianzIM U.S. Large Cap Buffer10 Jan ETF (NYSE Arca: AZAJ) and the AllianzIM U.S. Large Cap Buffer20 Jan ETF (NYSE Arca: AZBJ) will begin trading on the New York Stock Exchange.

Designed to expand the risk management strategies available to investors, AllianzIM Buffered Outcome ETFs seek to match the returns of the S&P 500 Price Return Index up to a stated Cap, while providing a level of downside risk mitigation through a Buffer against the first 10% and 20% of S&P 500 Price Return Index losses for AZAJ and AZBJ, respectively.

Ticker	Cap1	Buffer1	Outcome Period
AZAJ	13.45% Gross / 12.71% Net	10% Gross / 9.26% Net	January 1, 2021 to December 31, 2021
AZBJ	6.91% Gross / 6.17% Net	20% Gross / 19.26% Net	January 1, 2020 to December 31, 2021

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.

“As we kick off 2021, investors are faced with the risks of an ongoing global health crisis, continued market volatility, and a prolonged period of low interest rates,” said Brian Muench, president of AllianzIM. “The latest series of AllianzIM Buffered Outcome ETFs can help investors mitigate these risks in their portfolios without sacrificing the opportunity to participate in the upside potential of the equity market.”

The 12-month outcome period of the January ETF series will be January 1, 2021, to December 31, 2021. While there may be benefits to investing in the ETFs from the onset, investors can purchase the funds at any time within the stated outcome period. Each outcome period reflects a new stated cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.

AllianzIM’s Buffered Outcome ETFs are offered at an expense ratio of 0.74% with portfolio management conducted in-house by AllianzIM. AZAJ and AZBJ represent the final ETFs in the inaugural quarterly series for AllianzIM’s ETF product line. Additional U.S. Large Cap Buffered Outcome ETFs currently available in the AllianzIM ETF suite include: AZAA, AZBA, AZAL, AZBL, AZAO and AZBO.

The AllianzIM Buffered Outcome ETFs 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 new ETFs complement Allianz Life’s suite of annuity and life insurance products.

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

Investing involves risk including possible loss of principal.

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 Buffer 10 Jan ETF and AllianzIM U.S. Large Cap Buffer 20 Jan 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 2020 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 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.

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FAQ

What are the AllianzIM U.S. Large Cap Buffer10 Jan ETF (AZAJ) and Buffer20 Jan ETF (AZBJ)?

They are newly launched ETFs designed to deliver S&P 500 Price Return Index returns with built-in downside risk protection.

What is the expense ratio for AZAJ and AZBJ?

Both ETFs have an expense ratio of 0.74%.

When do the outcome periods for AZAJ and AZBJ start and end?

The outcome period for both ETFs runs from January 1, 2021, to December 31, 2021.

How much downside protection do AZAJ and AZBJ provide?

AZAJ offers a buffer against the first 10% of losses, while AZBJ provides a buffer against the first 20%.

Who manages the AllianzIM Buffered Outcome ETFs?

The ETFs are managed in-house by Allianz Investment Management LLC.