AllianzIM Announces New Upside Caps for July Series of U.S. Large Cap Buffered Outcome ETFs

Rhea-AI Summary

Allianz Investment Management LLC announces new upside caps for its U.S. Large Cap Buffered Outcome ETFs: AllianzIM U.S. Large Cap Buffer10 Jul ETF (AZAL) and AllianzIM U.S. Large Cap Buffer20 Jul ETF (AZBL). Both ETFs target S&P 500 returns, offering downside risk mitigation through a 10% and 20% Buffer, respectively. They feature a one-year outcome period starting July 1, 2021, and ending June 30, 2022. AllianzIM aims to provide investors with protection against inflation and market volatility.

Positive

• New upside caps for AZAL and AZBL enhance investment attractiveness.
• Both ETFs achieved expected outcomes in their first year.
• Investors can mitigate downside risks with 10% and 20% Buffers.

Negative

• None.

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

Ticker	Index Exposure	Buffer1	Cap1	Outcome Period Start Date	Outcome Period End Date
AZAL AllianzIM U.S. Large Cap Buffer10 Jul ETF	S&P 500	10% Gross / 9.26% Net	10.70% Gross / 9.96% Net	July 1, 2021	June 30, 2022
AZBL AllianzIM U.S. Large Cap Buffer20 Jul ETF	S&P 500	20% Gross / 19.26% Net	5.46% Gross / 4.72% Net	July 1, 2021	June 30, 2022

AllianzIM’s lineup of low-cost² Buffered Outcome ETFs seek to match the returns of the S&P 500 Price Return Index up to a stated Cap, while providing downside risk mitigation through a Buffer against the first 10% and 20% of S&P 500 Price Return Index losses over the 12-month outcome period. Funds AZAL and AZBL now have a one-year track record and have successfully achieved their expected outcomes over their initial outcome period.

“As inflation concerns continue to mount, it is increasingly challenging for investors to find comfort with investments in bond and equity markets alike,” said Johan Grahn, Head of ETF Strategy at AllianzIM. “Inflation is one of the worst enemies for people in retirement in particular, posing a dual-threat of decreasing bond prices and hollowing out of equity prices. Investors facing these challenges may find the middle ground they’ve been looking for in AllianzIM Buffered Outcome ETFs.”

Leveraging AllianzIM’s core strengths, AllianzIM Buffered Outcome ETFs are managed on a proprietary in-house hedging platform with over $150 billion in hedged assets. The ETFs complement Allianz Life’s suite of annuity and life insurance products, offering a new way to help investors seeking to mitigate risk and reduce volatility.

Defined Outcome ETFs have become a must-watch category for many investors. Following two banner years of growth, Defined Outcome ETFs were ranked as one of the top rated spaces for innovation by investors in Brown Brothers Harriman’s most recent Global ETF Survey.

“We’re in the early innings, there’s no doubt,” said Brian Muench, president of AllianzIM. “Defined Outcome ETFs can be simple yet very effective risk-management solutions, and investors are taking note given the run-up in equities and increased uncertainty around inflation.”

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 Normal brokerage fees still apply.

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 July ETF and AllianzIM U.S. Large Cap Buffer20 July 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005513/en/

FAQ

What are the new upside caps for AZAL and AZBL?

The new upside caps for AZAL and AZBL are 10.70% Gross / 9.96% Net and 5.46% Gross / 4.72% Net, respectively.

How do AZAL and AZBL mitigate risks?

AZAL provides a 10% Buffer and AZBL a 20% Buffer against losses in the S&P 500 Price Return Index.

What are the performance dates for AZAL and AZBL?

The performance period starts on July 1, 2021, and ends on June 30, 2022.

Who manages the AllianzIM Buffered Outcome ETFs?

The AllianzIM Buffered Outcome ETFs are managed by Allianz Investment Management LLC.

What index do AZAL and AZBL track?

Both AZAL and AZBL track the S&P 500 Price Return Index.