Allianz Investment Management entered the exchange-traded funds arena with two initial ETFs: The AllianzIM U.S. Large Cap Buffer10 Apr ETF (AZAA) and AllianzIM U.S. Large Cap Buffer20 Apr ETF (AZBA).
Each ETF trades on the NYSE Arca and has a net expense ratio of 0.74%. The Allianz division’s Buffered Outcome ETFs were “designed to expand the risk management solutions” and were “built to deliver outcome-based solutions to investors by utilizing buffers, caps and index-linked returns that may provide investors a greater degree of confidence,” it said.
The two ETFs help investors “mitigate risk and reduce volatility …. [and] complement Allianz Life’s suite of annuity and life insurance products,” it added. The ETFs seek to match the performance of the S&P 500 Price Return Index up to a stated upside cap, while providing downside protection (through the buffer) against the first 10% and 20% of the index’s losses for AZAA and AZBA, respectively, the company said. The firm manages over $145 billion in hedged assets which serve “as a bridge between insurance and capital markets.”
SEI Launches New Fund Strategies for Independent Advisors
SEI introduced new fund strategies built especially for independent advisors leveraging the SEI Wealth PlatformSM.
The six SEI American Funds Strategies from Independent Advisor Solutions by SEI were built with a core of American Funds by Capital Group using its low-cost, F3 share class to offer increased flexibility and to help advisors meet clients’ investment goals, SEI said. The six fixed income strategies are the: SEI American Funds Fixed Income Strategy (with a 0.30% expense ratio); SEI American Funds Conservative Growth & Income Strategy (0.34%); SEI American Funds Moderate Growth & Income Strategy (0.35%); SEI American Funds Growth & Income Strategy (0.38%); SEI American Funds Capital Growth Strategy (0.40%); and SEI American Funds Equity Strategy (0.43%).
The strategies, designed, constructed and maintained by SEI’s Investment Management Unit, are based on the company’s asset allocation philosophy and support a goals-based wealth management approach for growth, stability- and income. They also “benefit from the safety and security of assets being held within SEI Private Trust Company,” SEI said.
The strategies “span a broad risk-return spectrum” and allow investors to seek different targeted levels of returns commensurate with different levels of risk. They apply a strategic asset allocation based on long-term capital market assumptions, the company said.
Although the strategies typically will select from the American Funds, money market fund allocations within the portfolio can be allocated to one or more mutual funds from SEI’s family of mutual funds, it said.
Schwab Stock Slices Roll Out
Schwab has rolled out its previously announced Schwab Stock Slices, which allow investors to own fractional shares of stocks in the S&P 500 for as little as $5 each.
Investors can use the new service to buy a single stock slice or up to 10 different Stock Slices at once. They can also hold slices of as many S&P 500 companies in their portfolios as they wish via multiple purchases, according to the Schwab.