AllianzIM Launches New Buffer15 Uncapped ETF Series, Unlocking New Growth Opportunities

New ETF Series Allows Investors to Participate in the Market’s Growth Potential Without a Cap on Potential Returns after Exceeding the Spread

MINNEAPOLIS – April 1, 2024 – Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), today announces the launch of its AllianzIM U.S. Equity Buffer15 Uncapped ETF series, starting with the AllianzIM U.S. Equity Buffer15 Uncapped Apr ETF (Cboe: ARLU).

The new ETF series is designed to offer investors a 15% downside buffer* over a specific one-year outcome period, expanding on the existing Buffer10 and Buffer20 options. Unlike its predecessors, this new series allows investors to participate in the market's potential growth beyond a predefined spread relative to the performance of the SPDR S&P 500 ETF Trust without a cap on potential returns. The lineup will include 12 products by March 2025, with a new ETF launching monthly.

Fund

Ticker

Reference Asset

Outcome Periods

Inception Date

AllianzIM U.S. Equity Buffer15 Uncapped Apr ETF

ARLU

SPDR® S&P 500® ETF Trust

April 1 to March 31

3/28/2024

“During periods of bullish sentiment, investors increasingly seek strategies that can capitalize on the unlimited potential of equities, while still providing a level of protection against downside risk. That's exactly what our new Buffer15 Uncapped ETFs deliver,” says Chris Chambs, CEO of AllianzIM. “As markets shift with technological advancements and changing monetary policies, AllianzIM is committed to forward-thinking solutions that put our clients’ needs first."

2024 is off to a strong start in equity markets amid enthusiasm over developments in artificial intelligence and expectations for easing of monetary policy from the Federal Reserve. Building on AllianzIM’s legacy of risk management, the Buffer15 Uncapped series offers the opportunity for unlimited upside market participation in excess of the spread with a level of strategic protection from market declines.

"Historically, the S&P 500 has often delivered exceptional returns during strong market periods,” added Johan Grahn, Head of ETF Market Strategy at AllianzIM. “Our uncapped ETFs are designed to enable investors to participate in these rallies. At the same time, we recognize the importance of downside protection, which is why we've incorporated a 15% buffer* to provide a level of risk mitigation during periods of volatility."

In addition to the new AllianzIM Buffer 15 Uncapped ETF series, AllianzIM is also expanding its 6-month Floor5 series with the launch of the AllianzIM U.S. Equity 6 Month Floor5 Apr/Oct ETF (NYSE: FLAO). FLAO complements the firm’s existing portfolio of risk mitigation strategies by providing a maximum loss limit of 5% over a 6-month outcome period, with upside returns subject to a cap. This launch follows the successful debut of the AllianzIM U.S. Equity 6 Month Floor5 Jan/Jul ETF (NYSE: FLJJ) earlier this year.

*Buffers will be reduced and the spread will increase after taking into account management fees and other Fund fees and expenses.

AllianzIM’s Buffered ETFs are offered at an expense ratio of 74 basis points. The products utilize 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 uses the same proprietary in-house hedging platform that is used among affiliates to help manage more than $148 billion (as of 12/31/23) in hedged assets for institutional and retail investors around the globe. Offering a new way to help investors mitigate risk and reduce volatility, these ETFs complement Allianz Life’s suite of annuity and life insurance products.

For more information on the AllianzIM Buffer15 Uncapped ETF series or 6 Month Floor5 ETF series, please visit www.AllianzIMetfs.com.


Investing involves risk, including possible loss of principal. For more information on investment objectives, risks, charges, and expenses, please visit www.allianzIMetfs.com or call 877.429.3837. Investors should read the prospectus carefully before investing. There is no guarantee the funds will achieve their investment objectives, and investors may lose their entire investment. Holding Fund Shares for the entire Outcome Period is necessary to achieve the target outcomes.

The Buffered Outcome and Floor ETFs investment strategies are different from more typical investment products, and the Funds may be unsuitable for some investors. It is important that investors understand the investment strategy before making an investment. For more information regarding whether an investment in the Funds is right for you, please see the prospectus including “Investor Considerations." 

The Buffered Outcome and Floor ETFs investment strategies seek to deliver returns that match, at the end of a specified six-month or one-year 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 or Floor, before fees and expenses. The Buffer15 Uncapped series seeks to provide, at the end of a specific one-year period, returns that track the share price returns of the SPDR S&P 500 ETF Trust that are in excess of the Spread in positive market environments, while providing downside protection with a Buffer against the first 15% of Underlying ETF losses. The Spread and Buffer are before Fund fees and expenses.

The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (“OCC”). The Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the FLEX Options contracts. In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses.

ETFs are distributed by Foreside Fund Services, LLC. Allianz Investment Management LLC and Allianz Life Insurance Company of North America are not affiliated with Foreside Fund Services, LLC.

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.

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.