Traditional stock and bond allocations have been battered in the first quarter of 2022, posing challenges to investment professionals who want to help clients mitigate downside risk, without leaving opportunities on the table.
In the upcoming webcast, Q&A with Mohamed El-Erian: Outlook for the Second Half of 2022, Dr. Mohamed El-Erian, chief economic advisor for Allianz Group and Brian Muench, president of Allianz Investment Management LLC, will engage in a deep discussion on where the markets are headed and how new strategies can help mitigate risk while keeping clients invested even in today’s challenging market conditions.
Allianz offers a suite of buffered outcome ETFs designed to expand the risk management solutions available to investors. The lowest-cost buffered outcome ETFs on the market seek to match the returns of the S&P 500 Price Return Index up to a stated cap while providing a level of risk mitigation through a buffer against the first 10% and 20% of S&P 500 Price Return Index losses. The suite includes:
- AllianzIM U.S. Large Cap Buffer10 Jan ETF (AZAJ)
- AllianzIM U.S. Large Cap Buffer20 Jan ETF (AZBJ)
- AllianzIM U.S. Large Cap Buffer10 Apr ETF (AZAA)
- AllianzIM U.S. Large Cap Buffer20 Apr ETF (AZBA)
- AllianzIM U.S. Large Cap Buffer10 Jul ETF (AZAL)
- AllianzIM U.S. Large Cap Buffer20 Jul ETF (AZBL)
- AllianzIM U.S. Large Cap Buffer10 Oct ETF (AZAO)
- AllianzIM U.S. Large Cap Buffer20 Oct ETF (AZBO)
The ETFs follow a 12-month outcome period. Each outcome period reflects a new stated cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
Allianz also recently came out with the AllianzIM U.S. Large Cap 6 Month Buffer10 Apr/Oct ETF (SIXO) and the AllianzIM U.S. Large Cap 6 Month Buffer10 Jan/Jul ETF (SIXJ), which follow a six-month outcome period. The ETFs seek 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 the S&P 500 Price Return Index’s losses over a six-month outcome period for new adopters or short-term money, tactical advisors.
The AllianzIM buffered outcome ETFs leverage AllianzIM’s core strengths, including risk management experience and in-house hedging capabilities. As part of one of the largest asset management and diversified insurance companies globally, AllianzIM 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 retail investors around the globe. Offering a new way to help investors seek to mitigate risk and reduce volatility, these ETFs complement Allianz Life’s suite of annuity and life insurance products.
AllianzIM Buffered Outcome ETFs offer institutional risk management for the retail investor.
The strategies are part of a “growing series of ETFs designed to bring our in-house hedging capabilities and track record of managing risk to the retail investor. Built to help mitigate risk and lower volatility, Buffered Outcome ETFs allow investors to participate in the growth potential of the equity markets up to a stated Cap, with an explicit downside Buffer,” according to Allianz.
Financial advisors who are interested in learning more about managing risk ahead can register for the Thursday, May 26 webcast here.