Company Announcements

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

Reset offers new opportunity for investors to gain equity exposure with a level of risk mitigation in an uncertain environment

MINNEAPOLIS--(BUSINESS WIRE)--Jul. 1, 2022-- Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), today announced new upside caps for the July series of its U.S. Large Cap Buffered Outcome ETFs suite. The series includes two ETFs with a twelve-month Outcome Period: the AllianzIM U.S. Large Cap Buffer10 Jul ETF (NYSE Arca: AZAL) and the AllianzIM U.S. Large Cap Buffer20 Jul ETF (NYSE Arca: AZBL), as well as the AllianzIM U.S. Large Cap 6 Month Buffer10 Jan/Jul ETF (NYSE Arca: SIXJ) with a six-month Outcome Period.

As market conditions remain volatile amid recessionary concerns and tightening monetary policy, AllianzIM’s ETF lineup seeks 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.

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

22.80%

Gross /

22.06% Net

July 1, 2022

June 30, 2023

AZBL

AllianzIM U.S.

Large Cap

Buffer20 Jul

ETF

S&P 500

20% Gross /

19.26% Net

14.00%

Gross /

13.26% Net

July 1, 2022

June 30, 2023

SIXJ

AllianzIM U.S.

Large Cap 6

Month

Buffer10

Jan/Jul ETF

S&P 500

10% Gross /

9.63% Net

10.70%

Gross /

10.33% Net

July 1, 2022

December 31, 2022

“Investors face a tough predicament in today’s market. Equities remain shaky, while fixed income markets struggle with rising rates, and the value of cash is depleted by record-high inflation,” said Johan Grahn, Head of ETF Strategy at Allianz Investment Management LLC (AllianzIM). “Buffered Outcome ETFs offer investors an opportunity to participate in the upside of equities to a cap, while also providing explicit and meaningful downside risk mitigation.”

Offered at an expense ratio of 74 basis points, AllianzIM’s extensive suite of Buffered Outcome ETFs with six and 12-month outcome periods provide the opportunity for investors to invest in ETFs with new Caps and Buffers every quarter. The 12-month Outcome Period of the July series ETFs will be July 1, 2022 to June 30, 2023. The 6-month Outcome Period will be July 1, 2022 to December 31, 2022. Each Outcome Period reflects a new stated Cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.

“Investors have grown increasingly pessimistic about the economy and stock market, with many Americans worried about world tensions and talk of another recession,” said Brian Muench, president, AllianzIM. “Our mission is to provide investors with the tools to participate in the upside potential of the equity market, while also mitigating against macroeconomic risks such as inflation and geopolitical tensions.”

The AllianzIM Buffered Outcome 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 $19.5 billion (as of 9/30/21), 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 Buffered Outcome ETFs complement Allianz Life Insurance Company of North America’s suite of annuity and life insurance products.

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.

Allianz Investment Management LLC is a registered investment adviser and a wholly-owned subsidiary of Allianz Life Insurance Company of North America.

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. The funds noted above 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 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.

For more information:
Caitlyn Foster
Gregory FCA for AllianzIM
610-228-2056
allianz@gregoryfca.com

Jeff Faust
Allianz Life
(612) 670-8971
jeff.faust@allianzlife.com

Source: Allianz Investment Management LLC