Understanding your fixed index annuity allocation options

Please note: The following educational information may help you understand more about your allocation options and provide additional details if you choose to make any allocation changes, now or in the future. It is not meant to be a substitute for working with a financial professional.

Benefits of a fixed index annuity (FIA)

Fixed index annuities – or FIAs – offer the potential to earn tax-deferred interest, guarantees against loss of principal and credited interest from market downturns, and a guaranteed income stream for life.

Another benefit of an FIA is the potential to earn interest based on one or more external market indexes, or “allocation options.”

What is an allocation option?

Your fixed index annuity (FIA) contract can earn interest based on positive changes in an external index. After you choose one or more indexes, we then use a crediting method (which we explain below) to track the performance of your index(es) over a specified period of time. We call this combination of factors an “allocation option.”

At the end of this specified time – the “crediting period” – we calculate the indexed interest. If the result is positive, your annuity will automatically receive indexed interest, subject to a participation rate, cap, or spread (which we will also define below). That interest is locked in and cannot be lost due to index declines at some point in the future.

If the result is negative, nothing happens – and that can be good news! Although you won’t receive any indexed interest for that crediting period, your annuity’s value doesn’t decline due to market downturns.¹ That’s because your annuity does not directly participate in any stock or equity or bond investments. You are not buying shares of any stock or index fund.

A fixed interest allocation is also available. With the fixed interest allocation, interest is credited daily at the rate we establish at the beginning of each crediting period.

Which allocation options do I have?

You can view how your contract is currently allocated as well as all of the allocation options available to you on each annual statement, or you can log in to view your contract details. (If this is your first visit to the website, you will need to click on "Register" and follow the instructions to create an account.)

Once logged in, you can also find rates for all of your current allocation options on your annual statement, as well as the rates that will apply to the new allocation(s) available to you. Please note that depending on your anniversary date, your next statement may not be available yet.

Index options

Your annuity may offer one or more of the following index options. Please see your contract for specific availability.

Volatility-controlled ER index offerings

Volatility-controlled Excess Return (ER) indexes are designed to manage market volatility, either dynamically, with protection against rising rates, or with a forward-looking annual adjustment. Volatility-controlled indexes are designed to help stabilize index returns during volatile markets. In addition, these indexes track the price of futures to create the opportunity for a level of stability in renewal rates by addressing the effects of changing short-term interest rates.

BlackRock iBLD Claria® ER Index

Ticker: IBLDCLRE

U.S. bond / U.S. stock volatility-controlled

Go to the BlackRock iBLD Claria® ER Index page.

The BlackRock iBLD Claria® ER Index is comprised of equity and fixed income baskets of exchange-traded funds and cash, and shifts weighting daily between them based on realized market volatility. The baskets provide broad diversification across global and domestic, small- and large-cap opportunities that are evaluated annually by BlackRock asset managers to take advantage of current market trends.

The BlackRock iBLD Claria® ER Index uses an excess return methodology by tracking the price on a synthetic future, which is accomplished by subtracting the prevailing short-term lending rate, as measured by the 3-month London Interbank Offered Rate (LIBOR), from the combined basket returns and accounting for dividends on the exchange-traded funds. The excess return structure is designed to create a level of stability in your participation rate (for the associated crediting method) from year to year by mitigating the impact of short-term interest rates on renewal rates.

PIMCO Tactical Balanced ER Index

Ticker: DBTBIER

U.S. bond / U.S. stock volatility-controlled

Go to the PIMCO Tactical Balanced ER Index page.

The PIMCO Tactical Balanced ER Index is comprised of the U.S. Equity Futures Custom Index, a bond component comprised of the PIMCO Synthetic ER Bond Index with a duration overlay, and shifts weighting between them daily based on historical realized volatility of the components. In order to manage index volatility during times of high volatility the index weights may not add up to 100%. The U.S. Equity Futures Custom Index is a custom index that tracks futures on large-cap equities, similar to futures the S&P 500 Index. The PIMCO Synthetic Bond ER Index is a custom index comprised of a small number of instruments designed to provide exposure to futures on U.S. investment-grade and Treasury bond markets. The duration overlay adjusts the interest rate exposure in response to changes in market trends.

The PIMCO Tactical Balanced ER Index uses an excess return methodology by tracking the price of futures. Futures prices reflect the expected future price of an index and account for expected dividends. The excess return structure is designed to create a level of stability in your participation rate (for the associated crediting method) from year to year by mitigating the impact of short-term interest rates on renewal rates.

Bloomberg US Dynamic Balance II ER Index

Bloomberg ticker: BTSIDB2E

U.S. bond / U.S. stock volatility-controlled

Go to the Bloomberg US Dynamic Balance II ER Index page.

The Bloomberg US Dynamic Balance II ER Index is comprised of the Bloomberg US Equity Custom Futures ER Index and the Bloomberg US Aggregate Custom RBI Unfunded Index and shifts weighting between them daily based on historical realized volatility. In order to manage index volatility during times of high volatility, the index weights may not add up to 100%. The Bloomberg US Equity Custom Futures ER Index is a custom index that tracks futures on large-cap equities, similar to futures on the S&P 500 Index. The Bloomberg US Aggregate Custom RBI Unfunded Index is a custom index designed to track futures prices on the Bloomberg US Aggregate Bond Index – a well-established benchmark for the U.S. bond markets.

The Bloomberg US Dynamic Balance II ER Index uses an excess return methodology by tracking the price of futures. Futures prices reflect the expected future price of an index and account for expected dividends. The excess return structure is designed to create a level of stability in your participation rate (for the associated crediting method) from year to year by mitigating the impact of short-term interest rates on renewal rates.

Bloomberg US Dynamic Balance III ER Index

Bloomberg ticker: BTSIUDB3

U.S. stock volatility-controlled

Go to the Bloomberg US Dynamic Balance III ER Index page.

The Bloomberg US Dynamic Balance III ER Index is comprised of varying exposure to the Bloomberg US Equity Futures Basket ER Index. The Bloomberg US Equity Futures Basket ER Index is comprised of three sub-indexes, the Bloomberg US Equity Custom Futures ER Index, the Bloomberg US Small Cap Custom Futures ER Index, and the Bloomberg NDX Equity Custom Futures ER Index, with weights of 80%, 10%, and 10%, respectively, rebalanced daily. The Bloomberg US Equity Custom Futures ER Index is designed to provide exposure to large cap U.S. stocks in excess of a benchmark rate. The Bloomberg US Small Cap Custom Futures ER Index is designed to provide exposure to small cap U.S. stocks in excess of a benchmark rate. The Bloomberg NDX Equity Custom Futures ER Index is designed to provide exposure to technology sector U.S. stocks in excess of a benchmark rate.

The Bloomberg US Dynamic Balance III ER Index uses an excess return methodology by tracking the price of futures. Futures prices reflect the expected future price of an index and account for expected dividends. The excess return structure is designed to create a level of stability in your participation rate (for the associated crediting method) from year to year by mitigating the impact of volatility and changing short-term interest rates on renewal rates.

Morgan Stanley Strategic Trends 10 ER Index

Ticker: MSUSST10

U.S. bond / U.S. stock volatility-controlled

Go to the Morgan Stanley Strategic Trends 10 ER Index page.

The Morgan Stanley Strategic Trends 10 ER Index is comprised of the NASDAQ 100 Futures Excess Return Index and the 10-year Treasury MSCRF Rolling Futures Index. It shifts exposure between them based on three trends:

No clear interest rate trend in the market – 60% NASDAQ 100 Futures ER Index, 40% 10-year Treasury MSCRF Rolling Futures Index
Both short-term and long-term interest rates are increasing – 60% NASDAQ 100 Futures ER Index, -40% 10-year Treasury MSCRF Rolling Futures Index
Both short-term and long-term interest rates are increasing – 40% NASDAQ 100 Futures ER Index, 60% 10-year Treasury MSCRF Rolling Futures Index

Once the base weights between equity and bond are set, the realized volatility of the two indexes is calculated. Exposure of the index is then increased or decreased using a historical realized volatility calculation to target a volatility level of 10%.

The Morgan Stanley Strategic Trends 10 ER Index uses an excess return methodology by tracking the price of futures. Futures prices reflect the expected future price of an index and account for expected dividends. The excess return structure is designed to create a level of stability in your participation rate (for the associated crediting method) from year to year by mitigating the impact of short-term interest rates on renewal rates.

S&P 500® Futures Daily Risk Control 5% Index

Bloomberg ticker: SPXFR5UE

U.S. bond / U.S. stock volatility-controlled

Go to the S&P 500® Futures Daily Risk Control 5% Index page.

The S&P 500® Futures Daily Risk Control 5% Index is designed to measure a portfolio of S&P 500® futures plus a liquid bond index. These two positions are dynamically rebalanced to target a volatility of 5%.

Volatility-controlled index offerings (non-Excess Return)

Volatility-controlled indexes are designed to manage market volatility, either dynamically, with protection against rising rates, or with a forward-looking annual adjustment. Volatility-controlled indexes are designed to help stabilize index returns during volatile markets.

BlackRock iBLD Claria® Index

(For more information, visit www.blackrock.com/investing/annuity/annuity-index-claria)

A U.S. and International balanced futures Index
The BlackRock iBLD Claria Index reflects the performance of an allocation strategy that shifts between baskets of equity and fixed income exchange-traded funds (ETFs) and cash. The basket provides broad diversification across global and domestic, small- and large-cap opportunities that are evaluated annually by BlackRock asset managers to take advantage of current market trends.
In addition to daily reallocations, the weights between the ETFs within each basket are determined annually by BlackRock asset managers. This movement each year is based on the expertise of these managers using their forward-looking economic outlook. This index was designed with this unique opportunity in mind, providing the asset managers with a globally diversified set of options to choose from.

PIMCO Tactical Balanced Index

(For more information, visit www.pimcoindex.com)

A U.S. balanced index
The PIMCO Tactical Balanced Index reflects the performance of an allocation strategy that shifts between the S&P 500® Index, a bond component composed of the PIMCO Synthetic Bond Index and a duration overlay, and cash.
The PIMCO Synthetic Bond Index is a unique PIMCO-developed custom index comprised of a small number of derivative instruments designed to provide exposure to U.S. investment-grade and Treasury bond markets. The duration overlay adjusts the interest rate exposure in response to changes in market trends.
PIMCO and Allianz Life Insurance Company of North America are affiliated companies.

Bloomberg US Dynamic Balance Index II

(For more information, visit www.bloomberg.com)

A U.S. balanced index
The Bloomberg US Dynamic Balance Index II is composed of the Bloomberg US Aggregate RBI® Series 1 Index, the S&P 500® Index, and cash. The Bloomberg US Aggregate RBI® Series 1 Index is designed to track the Bloomberg US Aggregate Bond Index.
Every day, the Bloomberg US Dynamic Balance Index II dynamically allocates between the S&P 500® Index, the Bloomberg US Aggregate RBI® Series 1 Index, and cash based on their historical realized volatility (a measure of the magnitude of daily movements, regardless of direction, of an index). This balancing of risk every day helps stabilize index performance over time.

Non-volatility-controlled index offerings

Your annuity may also have one or more of these non-volatility-controlled indexes.

S&P 500® Index

(For more information, visit www.standardandpoors.com)

A U.S. large-cap index
Based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.
Considered by many to be the most common benchmark used in measuring the performance of U.S. stock market large-caps, which are companies with a market capitalization value of more than $10 billion. The S&P 500® Index represents a broad cross-section of common stocks traded on every major U.S. stock exchange. The Index is a selection of 500 leading companies from 100 distinct industry groups found in 10 leading American industrial market sectors.

EURO STOXX 50®

(For more information, visit www.stoxx.com)

An international index
Europe’s leading blue-chip index, which recognizes well-established and financially sound companies from the eurozone. It provides a blue-chip representation of supersector leaders and their ability to pay dividends in both good and bad times.
The index covers 50 stocks from 12 eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.

FTSE 100 Index

(For more information, visit www.ftse.com)

An international index
The FTSE (pronounced “footsie”) 100 Index is part of the FTSE UK Index. FTSE is an acronym for Financial Times Stock Exchange.
The Index is composed of the 100 most highly capitalized blue-chip companies, representing approximately 81% of the UK market.
It is used extensively as a basis for investment products, such as derivatives and exchange-traded funds.

Nasdaq-100® Index

(For more information, visit www.nasdaq.com)

A U.S. international large-cap index
Launched in January 1985, the Index includes 100 of the Nasdaq Stock Market’s most actively traded issues, representing a cross-section of major industry groups.
Its 100 companies are selected from the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market. Company size is based on market capitalization.

Russell 2000® Index

(For more information, visit www.russell.com/indexes)

A U.S. small-cap index
Measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks.
The Russell 2000 Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index.

Dow Jones Industrial Average

(For more information, visit www.dj.com)

A U.S. large-cap index
The oldest stock price index, established in 1884 with only 11 stocks.
There are now 30 stocks in the Dow Jones Industrial Average. It is one of the most recognized stock indexes in the United States.

S&P 500® Futures Index ER

(For more information, visit www.spglobal.com)

A U.S. large-cap index
The S&P 500® Futures Index aims to measure the performance of the nearest maturing quarterly E-mini S&P 500® futures contract. The index rolls every March, June, September, and December after the market closes five business days preceding the last trading day of the futures contract.

Blended Index

Composed of Dow Jones Industrial Average (35%), Barclays Capital U.S. Aggregate Bond Index (35%), EURO STOXX 50 or FTSE 100 (varies by product) (20%), and Russell 2000 (10%).

Blended Futures Index

A U.S. bond / U.S. equity / international equity index
The Blended Futures Index is constructed by allocating to futures indexes in fixed percentages to provide a 60/40 mix between equity and bond indexes: Bloomberg US 10-year Note Custom Futures ER Index (40%), S&P 500 Futures Index ER (30%), Bloomberg US Small Cap Custom Futures ER Index (20%), and Bloomberg International Equity Custom Futures ER Index (10%). These components use an excess return methodology by tracking the price of futures, which reflect the expected future price of an index and account for expected dividends.
The index allocates these fixed, specified percentages to each component to increase diversification and reduce volatility in returns.

Crediting methods

In addition to index options listed above, another factor that impacts how much indexed interest you receive is the crediting method you choose for your FIA.

A crediting method is simply a mathematical calculation we use to determine how much indexed interest your FIA will receive. Remember that no single crediting method is best in all situations. In some market conditions, one crediting method may result in more interest than others – or zero interest in a given crediting period.

The crediting method defines how changes in the index are measured over a specific period of time (we call this the “crediting period”). The crediting period can vary for different allocations (e.g., one year for annual point-to-point, two years for two-year point-to-point, two or five years for MY (multi-year) point-to-point).

The crediting method also has components such as caps, spreads, and participation rates that may limit the amount of indexed interest you receive, as described below.

Crediting method components

Crediting methods have certain components – such as caps, spreads, and participation rates – that can affect how much indexed interest you receive.

Review your statement for minimum rates. Note that some allocation options may have an allocation charge applied.

Caps

A cap is the maximum interest rate the annuity can earn in a given period. If the return of the index you select exceeds the cap, the cap is used to calculate your interest. For example, if there was an annual cap of 1.00% and the value of the index rose by 7.00%, the cap amount of 1.00% would be credited to your contract. However, if the index change was 0.5%, your contract would be credited 0.5%, since that is lower than our hypothetical annual cap. Similarly, if there was a monthly cap of 1.00% and the index rose by 7.00%, the cap amount of 1.00% for that month would be used in the calculation to determine indexed interest.

Spreads

In other cases, the indexed interest rate credited is determined by subtracting a spread from an index gain during a specified period. For example, if the index increased by 7% and the spread was 5%, your indexed interest would be 2%. If the index only gained 2% for the year, the amount of the gain (2%) is less than the spread (5%), so no indexed interest would be credited.

Participation rates

A participation rate determines what percentage of the index increase will be used to calculate your indexed interest. For example, let’s suppose that the index rose by 7%. If the participation rate was 50%, the contract would receive 3.5% in indexed interest. The participation rate for annual and MY point-to-point with a participation rate crediting methods is declared at the beginning of the crediting period. The participation rate for the annual point-to-point with a cap and monthly sum crediting methods is 100% for all contract years.

Crediting method options

Your annuity may give you several crediting method options (please see your contract for availability). Here’s an overview of four of these options and how they work.

tile-azl-Understanding-your-fixed-index-annuity-allocation-options

Monthly sum

Monthly sum is the most volatility-sensitive crediting method. It can provide interest in steady “up” markets, but it can be adversely affected by large monthly decreases.

How it works:

On your contract anniversary each month, the index value is compared to the prior month’s value, and the percentage of change is calculated. The increases are subject to a cap; however, decreases are not limited by the cap.
At the end of the year, the monthly index increases and decreases are added up.
If the final sum is positive, you’ll receive that amount as indexed interest.
If the sum is negative, you’ll receive no indexed interest.

Monthly average

Monthly average can help reduce volatility by averaging monthly highs and lows over the course of the year. It may be a good choice in turbulent markets.

How it works:

The index values at the end of each month are tracked for one year.
At the end of the year, those index values are added together and then divided by 12 to determine the monthly average.
The starting index value is subtracted from the monthly average, and the result is divided by the starting index value.
If the final amount is positive, a spread is applied to determine the amount of indexed interest you will receive.
If the final amount is negative, you’ll receive no indexed interest.

Annual point-to-point

Annual point-to-point uses the index value from only two points in time, so it may be a good choice if you want to minimize the effects of midyear market volatility.

How it works:

On your applicable contract anniversary, the index value from the beginning of the crediting period is compared to the index value from the end of the crediting period.
The percentage of change in the index is calculated.
If the ending index value is higher than the beginning index value, a cap, spread, or participation rate is applied to determine the amount of indexed interest you will receive.
If you are allocated to the 1-year Performance Trigger crediting method, and the percentage of change in the index is equal to or greater than the trigger interest rate threshold, you will receive the trigger interest rate.

MY point-to-point

The MY (multi-year) point-to-point crediting method may be a good choice if you want to help minimize the effects of volatility between two points, multiple years apart.

How it works:

You may have two crediting periods to choose from: 2-year point-to-point, which uses the index value from two points in time, two contract years apart, or 5-year point-to-point, which uses the index value from two points in time, five contract years apart.
On your applicable contract anniversary, we compare the index value from the beginning of the crediting period to the index value at the end of the crediting period.
We calculate the percentage of change in the index.
If the ending index value is higher than the beginning index value, the corresponding participation rate is applied to determine the amount of indexed interest you will receive.
If the ending index value at the end of your crediting period is lower, you won’t receive indexed interest.

Which allocation option should I choose?

You can use the Allocation Insights tool to see how allocation options could perform differently from each other in a variety of market conditions.

How do I change allocations?

You do not need to take any action now if you wish to keep your allocations the same. If you do choose to change your allocation options on your upcoming contract anniversary, you can do so online within 21 calendar days of the contract anniversary date for the changes to take effect for the current contract year. Changes received after that date will not take effect until your next contract year. Your next anniversary date can be found in the Overview section of your Contract Details page.

^* Not all contract types have the ability to change allocations online. A link to the allocation change form will be displayed for you to download if the online feature is not available for your contract.

Not registered yet?

There are many benefits to online access. Here are just a few:

Current contract values available at any time
Secure access to seven years of your statement history
Ability to change your allocations online

Access your contract information now.

Questions?

Feel free to contact us.

Or call us at 800.950.5872 Monday – Friday from 8:00 a.m. to 5:00 p.m. Central time.

¹ With the purchase of additional-cost riders, the contract’s value will be reduced by the cost of the rider each contract year. This may result in a loss of principal in any contract year in which the contract does not earn interest or earns interest in an amount less than the rider charge.

The indexes available within the contract are constructed to keep track of diverse segments of the U.S. or international markets, or specific market sectors. These indexes are benchmarks only. Indexes can have different constituents and weighting methodologies. Some indexes have multiple versions that can weight components or may track the impact of dividends differently. Although an index may affect your interest credited, you cannot buy, directly participate in, or receive dividend payments from any of them through the contract.

No single index allocation option will be most effective in all market environments.

There is potential for volatility-controlled indexes to underperform compared against benchmark indexes.

The BlackRock iBLD Claria® Index is comprised of an equity component, a bond component, and a cash component. It shifts weighting between them daily based on historical realized volatility of the components. Annually, BlackRock will set allocations to the ETFs within each of the equity component and the bond component. The equity component will be comprised of the following ETFs: iShares Russell 2000 ETF, iShares Core S&P 500 ETF, iShares MSCI EAFE ETF, iShares MSCI Emerging Markets ETF. The bond component will be comprised of the following ETFs: iShares 1-3 year Treasury Bond ETF, iShares 3-7 year Treasury Bond ETF, iShares 7-10 year Treasury Bond ETF. The cash component is represented by the 3 month LIBOR rate. The BlackRock iBLD Claria® ER Index is comprised of an equity component, a bond component, and a cash component. It shifts weighting between the components daily based on historical realized volatility of the components. The index tracks the return in excess of a benchmark rate. Annually, BlackRock will set allocations to the ETFs within each of the equity component and the bond component. The equity component will be comprised of the following ETFs: iShares Russell 2000 ETF, iShares Core S&P 500 ETF, iShares MSCI EAFE ETF, iShares MSCI Emerging Markets ETF. The bond component will be comprised of the following ETFs: iShares 1-3 year Treasury Bond ETF, iShares 3-7 year Treasury Bond ETF, iShares 7-10 year Treasury Bond ETF. The cash component is represented by the 3 month LIBOR rate.

The BlackRock iBLD Claria® Index and the BlackRock iBLD Claria® ER Index (the “Indices”) are products of BlackRock Index Services, LLC and have been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). BlackRock®, BlackRock iBLD Claria® Index, BlackRock iBLD Claria® ER Index, and the corresponding logos are registered and unregistered trademarks of BlackRock. The Allianz product is not sponsored, endorsed, sold or promoted by BlackRock Index Services, LLC, BlackRock, Inc., or any of its affiliates, or any of their respective third party licensors (including the Indices calculation agent, as applicable) (collectively, “BlackRock”). BlackRock has no obligation or liability in connection with the administration or marketing of the Allianz product. BlackRock makes no representation or warranty, express or implied, to the owners of the Allianz product or any member of the public regarding the advisability of investing in the Allianz product or the ability of the Index to track general market performance. BlackRock does not guarantee the adequacy, accuracy, timeliness, and/or completeness of the Indices or any data or communication related thereto nor does it have any liability for any errors, omissions or interruptions of the Indices.

The Blended Futures Index is comprised of four sub-indexes: S&P 500® Futures Index ER, Bloomberg International Equity Custom Futures ER Index, Bloomberg US 10yr Note Custom Futures ER Index, and Bloomberg US Small Cap Custom Futures ER Index.

The Bloomberg US Dynamic Balance Index II is comprised of the Bloomberg US Aggregate RBI Series 1 Index, the S&P 500® Index, and cash, and shifts weighting daily between them based on realized market volatility. The Bloomberg US Dynamic Balance II ER Index is comprised of the Bloomberg US Aggregate Custom RBI Unfunded Index and the Bloomberg US Equity Custom Futures ER Index and shifts weighting daily between them based on realized market volatility. The Bloomberg US Aggregate Custom RBI Unfunded Index is comprised of a portfolio of derivative instruments that are designed to provide exposure to U.S. Investment‐grade and Treasury bond markets in excess of a benchmark rate. The Bloomberg US Equity Custom Futures ER Index is designed to provide exposure to large cap U.S stocks in excess of a benchmark rate. The Bloomberg US Aggregate RBI Series 1 Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index is comprised of Bloomberg US investment‐grade, fixed‐rate bond market securities, including government agency, corporate, and mortgage‐backed securities.

The Bloomberg US Dynamic Balance Index II (a "Bloomberg Index") is the property of Bloomberg Index Services Limited and is derived and calculated based on the S&P 500 Index under license from S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices"). S&P® is a registered trademark of Standard & Poor's Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. S&P 500® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use to Bloomberg Index Services Limited. Neither S&P Dow Jones Indices, its affiliates nor their third party licensors sponsor or promote the Index and no such party shall have any liability in connection with the Bloomberg Index.

“Bloomberg®”, Bloomberg US Dynamic Balance Index II, Bloomberg US Dynamic Balance II ER Index, Bloomberg US Aggregate RBI® Series 1 Index, and Bloomberg US Aggregate Bond Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indexes (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Allianz Life Insurance Company of North America ("Allianz"). Bloomberg is not affiliated with Allianz Life Insurance Company of North America ("Allianz"), and Bloomberg does not approve, endorse, review, or recommend the Allianz product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Allianz product.

The Bloomberg US Dynamic Balance III ER Index is comprised of varying exposure to the Bloomberg US Equity Futures Basket ER Index, where the exposure is primarily determined by market implied volatility. The Bloomberg US Equity Futures Basket ER Index is comprised of three sub-indexes: the Bloomberg US Equity Custom Futures ER Index, the Bloomberg US Small Cap Custom Futures ER Index, and the Bloomberg US Tech Custom Futures ER Index, with intended weights of 80%, 10%, and 10%, respectively, rebalanced daily. The Bloomberg US Equity Custom Futures ER Index generally maintains exposure to large cap U.S stocks via futures in excess of the corresponding benchmark portfolio. The Bloomberg US Small Cap Custom Futures ER Index generally maintains exposure to small cap U.S stocks via futures in excess of the corresponding benchmark portfolio. The Bloomberg US Tech Custom Futures ER Index generally maintains exposure to technology sector U.S stocks via futures in excess of the corresponding benchmark portfolio. The Bloomberg US Intermediate Corporate Bond Index measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate bond market including USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers that meet specified liquidity and quality requirements and have a maturity of greater than one year and less than ten years.

The EURO STOXX 50® provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.

The EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group, or their licensors, which is used under license. Allianz products are neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners, or data providers and STOXX, Deutsche Börse Group and their licensors, research partners, or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions, or interruptions in the EURO STOXX 50 or its data.

MORGAN STANLEY STRATEGIC TRENDS 10 ER INDEX (THE “INDEX”) IS THE PROPERTY OF MORGAN STANLEY & CO. LLC.

ANY PRODUCT THAT IS LINKED TO THE PERFORMANCE OF THE INDEX IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MORGAN STANLEY & CO. LLC, OR ANY OF ITS AFFILIATES (COLLECTIVELY, “MORGAN STANLEY”). NEITHER MORGAN STANLEY NOR ANY OTHER PARTY (INCLUDING WITHOUT LIMITATION ANY CALCULATION AGENTS OR DATA PROVIDERS) MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING THE ADVISABILITY OF PURCHASING ANY PRODUCT LINKED TO THIS INDEX. IN NO EVENT SHALL MORGAN STANLEY HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES INCLUDING LOST PROFITS, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THE INDEX IS THE EXCLUSIVE PROPERTY OF MORGAN STANLEY. MORGAN STANLEY AND THE INDEX ARE SERVICE MARKS OF MORGAN STANLEY AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA (“LICENSEE”). NEITHER MORGAN STANLEY NOR ANY OTHER PARTY HAS OR WILL HAVE ANY OBLIGATION OR LIABILITY TO OWNERS OF THIS PRODUCT IN CONNECTION WITH THE ADMINISTRATION OR MARKETING OF THIS PRODUCT, AND NEITHER MORGAN STANLEY NOR ANY OTHER PARTY GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN.

No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark or service mark to sponsor, endorse, market or promote this product, without first contacting Morgan Stanley to determine whether Morgan Stanley’s permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley.

The Index applies a bespoke volatility control mechanism to seek to identify changing market conditions using intraday data with the aim of stabilizing the overall level of risk of the Index. The volatility control calculation applied by Morgan Stanley as part of the Index’s methodology may decrease the Index’s performance and thus the return of any product linked to the Index. In addition, because the volatility control calculation is expected to reduce the overall volatility of the Index, it will also reduce the cost of hedging certain products linked to the Index.

Morgan Stanley may transact derivative transactions linked to the Index. Potential purchasers of products linked to this Index should refer to the full offering document for important information concerning such products, including the related risk factors and make their own appraisal of the risks and suitability of such products.

Nasdaq®, Nasdaq-100 Rolling Futures™, Nasdaq-100®, NDXNQER™ are trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Allianz Life Insurance Company of North America. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The Nasdaq-100 Index^® includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ Stock Market^® based on market capitalization.

NASDAQ^®, and Nasdaq-100 Index^®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Allianz Life Insurance Company of North America. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The PIMCO Tactical Balanced Index is comprised of the S&P 500^® Index, a bond component comprised of the PIMCO Synthetic Bond Index and a duration overlay, and cash, and shifts weighting between them daily based on historical realized volatility of the components. The PIMCO Synthetic Bond Index is comprised of a small number of derivative instruments designed to provide exposure to U.S. Investment-grade and Treasury bond markets.

The “PIMCO Tactical Balanced Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and Pacific Investment Management Company LLC (“PIMCO”), and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Standard & Poor’s^® and S&P^® are registered trademarks of Standard & Poor’s Financial Services LLC (“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 Allianz. PIMCO’s Trademark(s) are trademarks of PIMCO and have been licensed for use by SPDJI and Allianz. Allianz products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or PIMCO 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 PIMCO Tactical Balanced Index.

The PIMCO Tactical Balanced ER Index is comprised of the U.S. Equity Futures Custom Index, a bond component comprised of the PIMCO Synthetic Bond ER Index and a duration overlay, and shifts weighting between them daily based on historical realized volatility of the components. The U.S. Equity Futures Custom Index provides exposure to large cap U.S. stocks in excess of a short-term interest rate. The PIMCO Synthetic Bond ER Index is comprised of a small number of derivative instruments designed to provide exposure to U.S. Investment-grade and Treasury bond markets in excess of a short-term interest rate. The Index is an excess return index, which means that it captures the returns of the underlying constituents which are in excess of a short-term interest rate. All else equal, higher short-term interest rates would result in an excess return index to underperform a non-excess return version of the same index.

The “PIMCO Tactical Balanced ER Index” (the “Index”) is a rules-based index that tactically allocates across U.S. equity and fixed income markets using quantitative signals. The Index is a trademark of Pacific Investment Management Company LLC (“PIMCO”) and has been licensed for use for certain purposes by Allianz Life Insurance Company of North America (the “Company” or “Allianz”) with respect to this Allianz product (the “Product”). The Index is the exclusive property of PIMCO and is made and compiled without regard to the needs, including, but not limited to, the suitability or appropriateness needs, as applicable, of the Company, the Product, or any Product owners. The Product is not sold, sponsored, endorsed or promoted by PIMCO or any other party involved in, or related to, making or compiling the Index. PIMCO Tactical Balanced Excess Return Index performance contains backtested performance beginning 22 April 2004, which is prior to the actual launch of the index: The PIMCO Tactical Balanced Excess Return Index launched on 2 August 2018.

Neither PIMCO nor any other party involved in, or related to, making or compiling the Index has any obligation to continue to provide the Index to the Company with respect to the Product. In the event that the Index is no longer available to the Product or Product owners, the Company may seek to replace the Index with another suitable index, although there can be no assurance that one will be available.

The Russell 2000^® Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000^® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index.

The Russell 2000^® Index (the “Index”) is a trademark of Frank Russell Company (“Russell”) and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). Allianz products are not in any way sponsored, endorsed, sold, or promoted by Russell or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty, or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Index (upon which the Allianz product is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Allianz product. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to Allianz or to its clients. The Index is calculated by Russell or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.

The S&P 500® Index is comprised of 500 stocks representing major U.S. industrial sectors. The S&P 500® Futures Index ER is constructed from the front-quarter E-mini futures contract on the S&P 500. It is part of the S&P Factor Series, which measures the inherent risk premium between asset classes and financial markets.

The "S&P 500® Index", "S&P 500® Futures Daily Risk Control 5% Index", and "S&P 500® Futures Index ER" are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by Allianz Life Insurance Company of North America ("Allianz"). S&P®, S&P 500®, US 500, and The 500 are trademarks of S&P Global, Inc. or its affiliates (“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 Allianz. It is not possible to invest directly in an index. Allianz products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). Neither S&P Dow Jones Indices nor any third party licensors make any representation or warranty, express or implied, to the owners of the Allianz products or any member of the public regarding the advisability of investing in securities generally or in Allianz products particularly or the ability of the S&P 500® Index, and/or S&P 500® Futures Index ER to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only relationship to Allianz with respect to the S&P 500® Index, and S&P 500® Futures Index ER is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500® Index, and S&P 500® Futures Index ER are determined, composed and calculated by S&P Dow Jones Indices without regard to Allianz or the Allianz products. S&P Dow Jones Indices have no obligation to take the needs of Allianz or the owners of Allianz products into consideration in determining, composing or calculating the S&P 500® Index, and S&P 500® Futures Index ER. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of Allianz products. There is no assurance that investment products based on the S&P 500® Index, or S&P 500® Futures Index ER will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, promoter” (as defined in the Investment Company Act of 1940, as amended), “expert” as enumerated within 15 U.S.C. § 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice.

NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500® INDEX, AND S&P 500® FUTURES INDEX ER OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ALLIANZ, OWNERS OF THE ALLIANZ PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500® INDEX, AND S&P 500® FUTURES INDEX ER OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOR DOES S&P DOW JONES INDIES HAVE ANY CONTROL OVER, THE LICENSEE PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ALLIANZ, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

Allianz Life Insurance Company of North America may provide compensation to third parties other than index providers based on premium allocated to certain indices. One or more of these third parties may have an indirect affiliation with your financial professional.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

• Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government agency or NCUA/NCUSIF

Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.

Product and feature availability may vary by state and broker/dealer.

Understanding your fixed index annuity allocation options

Error