Earlier this month, Allianz launched two funds in the buffered outcome ETF space: the AllianzIM U.S. Large Cap Buffer10 Apr ETF (NYSE Arca: AZAA) and the AllianzIM U.S. Large Cap Buffer20 Apr ETF (NYSE Arca: AZBA).
Halo Investing, Inc. (Halo) and Allianz Investment Management LLC (AllianzIM), a registered investment adviser and wholly owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), partnered to distribute the new series of buffered outcome ETFs.
Halo, the leading global platform for structured investment products, creates the first technology product for investment professionals to monitor their client’s buffered outcome ETFs. This product launch complements a growing suite of investing options offered by Halo.
AZAA and AZBA are designed to deliver outcome-based solutions to investors by utilizing buffers, caps and index-linked returns that seek to provide a buffer against downside losses and return potential up to a cap.
As partners, Halo & AllianzIM are pushing forward innovations in investing while offering a scalable technology for clients to easily access and allocate Buffered Outcome ETFs within a portfolio.
“These ETFs give investment professionals a flexible, accessible way to help buffer against market volatility and downside movements that many investors have been fully exposed to,” says Halo co-founder & CEO, Biju Kulathakal. “We are giving investors an easy way to implement a risk-based investment approach through a low cost, liquid vehicle.”
Buffered outcome ETFs track an index over a defined period of time while offering a limit to downward movements, known as a “buffer.” Investors can also participate in the positive returns of the index up to a predefined level.
“Offering a new way to help investors manage market risk in order to help meet their retirement goals, these new ETFs will complement Allianz Life’s suite of annuity and life insurance products,” said Brian Muench, president of AllianzIM. “Through this partnership with Halo, we are making it easy for investment professionals to invest in Buffered Outcome ETFs and help manage client expectations.”
As the platform for investment professionals to monitor their client’s AllianzIM Buffered Outcome ETFs, Halo’s technology is first in the market to help investors track and analyze this relatively new type of ETF. Built on Halo’s core structured product platform – which offers analytics, education and full lifecycle management – added features include a payoff calculator, customized alerts for cap/buffer levels and roll-forward analysis.