MINNEAPOLIS–(BUSINESS WIRE)–Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), announced today the launch of its December series of U.S. Large Cap Buffered Exchange Traded Funds (ETFs). The December series includes two ETFs with a twelve-month Outcome Period: the AllianzIM U.S. Large Cap Buffer10 Dec ETF (NYSE Arca: DECT) and the AllianzIM U.S. Large Cap Buffer20 Dec ETF (NYSE Arca: DECW).
The December series is the latest expansion of AllianzIM’s new suite of monthly U.S. Large Cap Buffered ETFs, which debuted in November. As markets remain volatile heading into the end of the year as a result of the Fed’s ongoing commitment to bringing down inflation, the demand for risk mitigation solutions remains high. The December series ETFs seek to match the share price returns of the SPDR S&P 500 ETF Trust up to a stated Cap, while providing downside risk mitigation through a buffer against the first 10% or 20% of SPDR S&P 500 ETF Trust losses.
|Ticker||ReferenceAsset||Buffer1||Cap1||OutcomePeriod StartDate||OutcomePeriod EndDate|
|DECTAllianzIM U.S. Large Cap Buffer10 Dec ETF||SPDR S&P 500ETF Trust||10% Gross /9.26% Net||23.61% Gross /22.87% Net||Dec. 1, 2022||Nov. 30, 2023|
|DECWAllianzIM U.S. Large Cap Buffer20 Dec ETF||SPDR S&P 500ETF Trust||20% Gross /19.26% Net||15.59% Gross /14.85% Net||Dec. 1, 2022||Nov. 30, 2023|
“With interest rates still rising and fears of an economic slowdown mounting, our new monthly series of Buffered ETFs give investors expanded access to versatile risk mitigation tools,” says Johan Grahn, Head of ETFs at AllianzIM. “Despite ongoing market volatility, Buffered ETFs allow investors to take cash off the sidelines yet stay invested in the markets.”
Offered at an expense ratio of 74 basis points, AllianzIM’s extensive suite of Buffered ETFs with six and 12-month outcome periods provide the opportunity for investors to invest in ETFs with new Caps every month. The 12-month Outcome Period of the December series ETFs will be December 1, 2022 to November 30, 2023. Each Outcome Period reflects a new stated Cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
“With 2023 just around the corner, our goal is to give investors the tools needed to navigate the unknowns in the market,” says Brian Muench, President, AllianzIM. “After observing the turbulence in markets this part year, we’re eager to meet the growing demand from advisors and investors for additional risk mitigation strategies.”
The AllianzIM Buffered ETFs seek to leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities. As part of Allianz SE, one of the largest asset management and diversified insurance companies in the world, AllianzIM, with AUM of $19.5 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 Buffered ETFs complement Allianz Life’s suite of annuity and life insurance products.
For more information on the AllianzIM Buffered ETF suite, please visit www.AllianzIMetfs.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.AllianzIMetfs.com, provides important fund information as well as information relating to the potential outcomes of an investment in the Fund on a daily basis.
Investing involves risk including possible loss of principal. There is no guarantee the funds will achieve their investment objectives and may not be suitable for all investors.
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.AllianzIMetfs.com or call 877.429.3837. Read the prospectus carefully before investing.
ETFs 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.