AllianzIM Launches New Buffered Outcome ETF With 6-Month Outcome Period

October 1, 2021 8:00 AM EDT

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

ETF offers new entry point and potential for enhanced risk mitigation amid market uncertainty

MINNEAPOLIS--(BUSINESS WIRE)-- Allianz Investment Management LLC (AllianzIM), a wholly owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), today launched a new buffered outcome ETF with a six-month outcome period: the AllianzIM U.S. Large Cap 6 Month Buffer10 Apr/Oct ETF (NYSE: SIXO).

AllianzIM’s new ETF 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% of S&P 500 Price Return Index losses for SIXO over a six-month outcome period. SIXO seeks to meet its investment objective using flexible exchange (FLEX) options.

Ticker

Index Exposure

Buffer1

Cap1

Outcome Period Start Date

Outcome Period End Date

SIXO

AllianzIM U.S. Large Cap 6 Month Buffer10 Apr/Oct ETF

S&P 500

10% Gross / 9.63% Net

6.00% Gross / 5.63% Net

October 1, 2021

March 31, 2022

“The buffered outcome ETF market has grown dramatically, increasing from zero to almost $8 billion of assets in just three years,” said Johan Grahn, Vice President and Head of ETF Strategy at AllianzIM. “We’re excited to expand our lineup of Buffered Outcome ETFs to meet the evolving risk management needs of investors. SIXO is the latest addition to our Defined Outcome ETF lineup, providing investors with an opportunity to participate in the equity market up to a cap in an ETF that provides a 10% buffer against losses and the potential for gains to be realized every six months.”

SIXO debuts as one of the lowest-cost buffered outcome ETFs on the market with an expense ratio of 0.74%. The ETF is designed to create more opportunity for investors with two outcome periods per year, as well as provide additional applications within an investment portfolio. SIXO provides the potential for greater downside mitigation with a 10% buffer over a shorter period and can serve as a potential alternative to short-term, low-yielding investment vehicles.

The six-month outcome ETF joins the existing suite of AllianzIM Buffered Outcome ETFs with a 10% and 20% buffer, which offer a one-year outcome period. The AllianzIM U.S. Large Cap Buffer10 Oct ETF (NYSE: AZAO) and the AllianzIM U.S. Large Cap Buffer20 Oct ETF (NYSE: AZBO) today begin a new one-year outcome period with new upside caps.

Ticker

Index Exposure

Buffer1

Cap1

Outcome Period Start Date

Outcome Period End Date

AZAO

AllianzIM U.S. Large Cap Buffer10 Oct ETF

S&P 500

10% Gross / 9.26% Net

12.75% Gross / 12.01% Net

October 1, 2021

September 30, 2022

AZBO

AllianzIM U.S. Large Cap Buffer20 Oct ETF

S&P 500

20% Gross / 19.26% Net

6.80% Gross / 6.06% Net

October 1, 2021

September 30, 2022

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 $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.

“We’re focused on expanding our defined outcome product suite to help investment professionals and their clients navigate today’s historically low interest-rate environment and market uncertainty,” said Brian Muench, President, AllianzIM. “The launch of the new AllianzIM Buffered Outcome ETF with a six-month outcome period is the latest evolution in this process. We look forward to continuing to work closely with investment professionals to remain on the cutting edge of risk mitigation.”

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 over the stated outcome period, 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, 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.

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.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 or six-month (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 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.

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



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Business Wire, Press Releases