AllianzIM Expands Lineup of Risk Mitigation Tools with September Buffered ETFs

New ETFs offer investors equity market participation with downside risk mitigation amid cooling inflation.

MINNEAPOLIS - Sept. 1, 2023 - Allianz Investment Management LLC (AllianzIM), a subsidiary of Allianz Life Insurance Company of North America, announced today the launch of its latest series of Buffered ETFs. The September Buffered ETFs series includes two 12-month outcome period ETFs: AllianzIM U.S. Large Cap Buffer10 Sep ETF (NYSE Arca: SEPT) and the AllianzIM U.S. Large Cap Buffer20 Sep ETF (NYSE Arca: SEPW). This launch completes the series of AllianzIM Buffered ETFs. Caps on these funds will continue to be reset on a monthly basis.

Recent economic data has signaled progress in the fight against inflation, indicating the Federal Reserve may be nearing the end of its rate-hiking cycle. The September Buffered ETFs provide another tool for investors to tap into the momentum in the equity market, while potentially mitigating against uncertainties that persist in the second half of the year. The ETFs seek a downside buffer of 10% or 20% against market drops, while allowing investors to participate in the upside potential of the SPDR S&P 500 ETF Trust up to a stated cap.

Ticker

Reference Asset

Buffer1

Cap1

Outcome Period Start Date

Outcome Period End Date

SEPT

AllianzIM U.S. Large Cap Buffer10 Sep ETF

SPDR S&P 500 ETF Trust (SPY)

10% Gross / 9.26% Net

19.44% Gross / 18.70% Net

September 1, 2023

August 31, 2024

SEPW

AllianzIM U.S. Large Cap Buffer20 Sep ETF

SPDR S&P 500 ETF Trust (SPY)

20% Gross / 19.26% Net

13.54% Gross / 12.80% Net

September 1, 2023

August 31, 2024

 

“Investors have been challenged with balancing a recent string of upside economic news with what might be more realistic expectations of a cooling economy in the months ahead” says Johan Grahn, Head ETF Market Strategist at AllianzIM. “Our line of Buffered ETFs offers investors the opportunity to maintain equity exposure while buffering their portfolios against unforeseen risks.”

Offered at an expense ratio of 74 basis points1, AllianzIM’s extensive suite of Buffered ETFs is offered with six and 12-month Outcome Periods. The 12-month Outcome Period of the Sept ETF series will be September 1, 2023 to August 31, 2024. Each Outcome Period reflects a new stated Cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.

“Risk management is the core of what we do at AllianzIM,” said Brian Muench, President of AllianzIM. “With just a few months left in 2023, we stand committed to helping investors more confidently plan for the future. Our growing suite of Buffered ETFs are designed to help investors put their money to work, while hedging against the evolving risks in the market.”

The AllianzIM Buffered 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 (Allianz SE), AllianzIM is powered by the same proprietary in-house hedging platform that is used among affiliates to help manage more than $152 billion (as of 6/30/23) in hedged assets for institutional and retail investors around the globe. Offering a new way to help investors to mitigate risk and reduce volatility, these 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.

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.

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.

To learn more, visit www.allianzIMetfs.com

To achieve the target outcomes sought by the Fund for an outcome period, an investor must hold Fund Shares for that entire outcome period. An investor that purchases Fund Shares after the outcome period has begun or sells Fund Shares prior to the end of the outcome period may experience results that are very different from the investment objective sought by the Fund for that outcome period.

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.

The Funds seek to deliver returns that match, at the end of a specified one-year or six-month period (outcome period) the share price returns of the SPDR S&P 500 ETF Trust up to a predetermined cap, while limiting downside losses by the amount of a specified buffer, before fees and expenses.

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 Company Profile

Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2023, Allianz Life provided additional value to its policyholders via distributions of more than $13.73 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and fixed index universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser and wholly owned subsidiary of Allianz Life, offers a suite of exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with approximately 157,000 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.

ETFs are distributed by Foreside Fund Services LLC.