Growing demand for risk-managed investment strategies

Investor appetite icon Investor appetite icon

Investor appetite for risk decreases

Risk appetite has declined across generations, as baby boomers prepare for retirement and millennials express heightened sensitivity to loss.
market dynamics icon market dynamics icon

Prevailing market dynamics create new challenges

Investors face an unprecedented environment defined by high volatility, sustained low interest rates, and a new level of uncertainty driven by increasingly integrated global markets.
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Risk management is not a “one-size-fits-all” solution

Across the spectrum of risk management, few strategies allow investors to participate in the growth potential of equities, while also providing the opportunity to address downside exposure and volatility.

By the numbers: Risk aversion leads to lost opportunities

  • 70% of investors are willing to give up some potential gains for a vehicle that protects from loss1
  • 9 in 10 households have a conservative or moderate risk tolerance2
  • $21.3 trillion in cash is currently on the sidelines with little to no growth opportunity3
  • 5.04% is how much the average equity investor underperformed the S&P 500® Index in 2018 due to market timing4

AllianzIM Buffered Outcome ETFs

Institutional risk management focus for the retail investor
  • Designed to help mitigate risk and lower volatility, Buffered Outcome ETFs allow investors to participate in the growth potential of equity markets, while helping to address risk and seek more consistent and stable returns.
  • The strategies provide the growth potential of the equity markets up to a stated Cap, as well as a limit to downside losses based on a defined Buffer.

    • Full extent of Caps and Buffers only apply if held for stated Outcome Period but are not guaranteed.

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About AllianzIM

Risk management is in our DNA
  • As part of one of the largest asset management and diversified insurance companies in the world, Allianz Investment Management LLC (AllianzIM) maintains a long track record of developing and executing risk management strategies across the globe, with nearly $133 billion in hedged assets on our in-house hedging platform.
  • AllianzIM is the wholly-owned registered investment adviser of Allianz Life Insurance Company of North America. Both are members of the Allianz Group, which serves more than 92 million institutional and retail clients in 70 countries.
  • Allianz Investment Management LLC serves as the ETFs’ investment adviser.
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Recent News & Resources

1 The Allianz Quarterly Market Perceptions Study, December 2019. Online survey of 513 Americans with over $200k in investible assets.

2 Cerulli Report, U.S. Retail Investor Products and Platforms, 2019.

3 Federal Reserve Statistical Release, March 2019.

4 Dalbar, “Average investor blown away by market turmoil in 2018,” March 29, 2019.

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.

The Buffered Outcome 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".

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 call 877.429.3837 or review the prospectus. Read the prospectus carefully before investing.

Distributed by Foreside Fund Services, LLC.

© 2020 Allianz Investment Management LLC. All rights reserved.