Summary Prospectus
AZL® Government Money Market Fund
May 1, 2023
AZL® Government Money Market Fund
Before you invest, you may want to review the Fund’s Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s Prospectus, Statement of Additional Information (“SAI”) and other information about the Fund online at www.allianzlife.com/azlfunds. You can also get this information at no cost by calling 1-800-624-0197 or by sending an email request to contact.us@allianzlife.com. The Fund’s
Prospectus and SAI, both dated May 1, 2023, as supplemented, are incorporated by reference into this Summary Prospectus.
Investment Objective
The Fund seeks current income consistent with stability of principal.
Fees and Expenses
Fees and Expenses of the Fund
The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.
The Fund is offered exclusively as an investment option for certain Contracts. The table below reflects only Fund expenses and does not reflect Contract fees and expenses. If Contract fees and expenses were included, the fees and expenses in the following table would be higher. Please refer to the Contract prospectus for a description of those fees and expenses.
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value
of your investment)
|
Management Fee
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0.35%
|
|
Distribution (12b-1) Fees
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0.25%
|
|
Recoupment of Prior Waived Fees(1)
|
0.24%
|
|
Other Expenses
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0.04%
|
|
Total Annual Fund Operating Expenses
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0.88%
|
|
Fee Waiver(2)
|
-0.01%
|
|
Total Annual Fund Operating Expenses After Fee Waiver(2)
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0.87%
|
(1)
The Manager, the Distributor and the Fund have entered into a written agreement
to waive, reimburse, or pay the Fund’s expenses as necessary to maintain a minimum daily net investment income for the Fund of 0.00%. Amounts previously
waived, reimbursed, or paid are subject to repayment (recoupment) by the Fund, provided that: (1) the repayments will not cause the Fund’s net investment
income to fall below 0.00%; (2) the repayments must be made no later than three years after the waiver, reimbursement, or payment took place; and (3) any
expense recovery paid by the Fund will not cause its expense ratio to exceed 0.87%.
(2)
The Manager and the Fund have entered into a written agreement reducing the
management fee to 0.34% through at least April 30, 2024, after which the fee waiver may be terminated by the Manager or the Fund at any time and for any
reason.
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in
other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year, that the Fund’s operating expenses remain the same, and that you reinvest all dividends and distributions. It does not reflect any Contract fees. It reflects the management fee waiver agreement for the first
year. If Contract fees were included, the costs shown would be higher. Although your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
$89
|
$280
|
$487
|
$1,083
|
The Allianz Variable Insurance Products Trust
1
Summary Prospectus
AZL® Government Money Market Fund
Investments, Risks, and Performance
Principal Investment Strategies of the Fund
The Fund invests at least 99.5% of its total assets in cash, government securities, or repurchase agreements
that are collateralized fully by such securities. The Fund also has a policy to invest, under normal market conditions, at least 80% of its net assets in government securities or in repurchase agreements that are collateralized by government securities. The government securities in which the Fund may invest include any security issued or guaranteed as to principal or interest by the United
States, or by a person controlled or supervised by and acting as an instrumentality of the Government of the United States pursuant to authority granted by the
Congress of the United States, or any certificate of deposit for any of the foregoing.
Under normal circumstances, the Fund’s investments include U.S. Treasury bills, notes and other obligations
issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations. In addition, the Fund may invest in variable and floating rate instruments and when-issued and delayed delivery securities, and forward commitment settlement. The Fund invests in a portfolio of securities maturing in 397 calendar
days or less (with certain exceptions as permitted by applicable regulation) and maintains a dollar-weighted average maturity of 60 calendar days or less.
The securities purchased by the Fund are subject to the quality, diversification, and other requirements of
Rule 2a-7 under the Investment Company Act of 1940, as amended (the “1940 Act”), and other rules of the U.S. Securities and Exchange Commission.
Principal Risks of Investing in the Fund
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
During extended periods of low interest rates, and due in part to Contract fees and expenses, the yield of the
Fund may become extremely low and possibly negative.
Selection Risk
– Because this Fund is actively managed, there can be no guarantee that investment decisions made for the Fund will produce the desired results.
Interest Rate Risk – Debt securities held by a fund may decline in value due to rising interest rates. Macroeconomic factors, such as inflationary trends,
can heighten interest rate risk.
U.S. Government Obligations Risk – Certain securities in which a fund may invest, including securities issued by certain government agencies and government sponsored
enterprises, are not guaranteed by the U.S. Government or supported by the full faith and credit of the United States. It is possible that issuers of U.S.
government securities will not have the funds to meet their payment obligations in the future.
Treasury Obligations Risk – Direct obligations of the U.S. Treasury have historically involved little risk of loss of principal if held to maturity. However, due to
fluctuations in interest rates, the market value of such securities may vary during the period shareholders own shares of a fund.
Repurchase Agreements and Purchase and Sale Contracts Risk – If the other party to a repurchase agreement or purchase and sale contract defaults on its
obligation under the agreement, a fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to
repurchase the security in either situation and the market value of the security declines, the fund may lose money.
Credit Risk –
The failure of the issuer of a debt security to pay interest or repay principal in a timely manner may have an adverse impact on a fund’s earnings.
Market Risk –
The market value of portfolio securities may go up or down, sometimes rapidly and unpredictably.
Income Risk –
Falling interest rates may cause a fund’s income to decline.
Issuer Risk –
The value of a security may decline for a number of reasons directly related to the issuer of the security.
Liquidity Risk
– An investment that is difficult to purchase or sell may have an adverse effect on the fund’s returns.
The Allianz Variable Insurance Products Trust
2
Summary Prospectus
AZL® Government Money Market Fund
Stable Net Asset Value Risk – The Fund may not be able to maintain a stable NAV of $1.00 per share at all times. If the Fund fails to maintain a stable NAV (or if
there is a perceived threat of such a failure), the Fund, along with other money market funds, could be subject to increased redemption activity.
When Issued and Delayed Delivery Securities and Forward Commitments Risk – The purchase or sale of securities on a when issued basis or on a delayed delivery basis or
through a forward commitment involves the purchase or sale of securities by the Fund at an established price with payment and delivery taking place in the future.
When-issued and delayed delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation.
Variable and Floating Rate Instrument Risk - These are instruments that provide for adjustments in the interest rate on certain reset
dates (variable) or whenever a specified interest rate index changes (floating). Although variable- and floating-rate instruments are less sensitive to interest
rate risk than fixed-rate securities, they are subject to credit risk, default risk and liquidity risk. Variable- and floating-rate instruments may decline in
value if their coupon rates do not reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed notes of the
same maturity. Due to these instruments’ variable- or floating-rate features, there can be no guarantee that they will pay a certain level of a dividend, and such instruments generally will pay lower levels of income in a falling interest rate environment.
Performance Information
The following bar chart and table provide an indication of the risks of an investment in the Fund by showing
changes in its performance from year to year and by showing how the Fund’s average annual returns for one year, five years, and ten years compare with those of a broad-based measure of market performance.
Both the bar chart and the table assume reinvestment of dividends and distributions.
The performance of the Fund will vary from year to year. The Fund’s performance does not reflect the cost of
insurance and separate account charges which are imposed under your Contract. If they were included, performance would be reduced. Past performance does not indicate how the Fund will perform in the future.
Prior to April 25, 2016, the Fund was known as the AZL Money Market Fund and managed pursuant to different
investment strategies. Consequently, the performance information shown below for periods prior to April 25, 2016, reflects the Fund’s prior investment strategies and not its current investment strategies.
Performance Bar Chart and Table
Calendar Year Total Return
Highest and Lowest Quarter Returns (for periods shown in the bar chart)
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Highest (Q4, 2022)
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0.67%
|
|
Lowest (Q1, 2022)
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0.00%
|
The Allianz Variable Insurance Products Trust
3
Summary Prospectus
AZL® Government Money Market Fund
Average Annual Total Returns
|
|
One Year Ended
December 31, 2022
|
Five Years Ended
December 31, 2022
|
Ten Years Ended
December 31, 2022
|
|
AZL Government Money Market
|
0.77%
|
0.67%
|
0.34%
|
|
Three-Month U.S. Treasury Bill Index*
|
2.01%
|
1.28%
|
0.78%
|
*
Reflects no deduction for fees, expenses, or taxes.
The seven-day yield for the period ended December 31, 2022 was 3.28%. For the Fund’s current 7-day yield, telephone 800-624-0197 toll-free.
The seven-day yield for the period ended December 31, 2022 was 3.28%. For the Fund’s current 7-day yield, telephone 800-624-0197 toll-free.
Management
Allianz Investment Management LLC (the "Manager") serves as the investment adviser to the Fund.
BlackRock Advisors, LLC serves as the Subadviser to the Fund.
Tax Information
Shares of the Funds are sold exclusively to the separate accounts of certain insurance companies in
connection with particular variable annuity and variable life insurance contracts (the “Contracts”). Provided that a Fund and a separate account investing in the Fund satisfy applicable tax requirements, any distributions from the Fund to the separate account will be exempt from current federal income taxation to the extent that such distributions accumulate in the Contract. You should refer
to your Contract prospectus for further information regarding the tax treatment of the Contract and the separate accounts in which the Contract is invested.
Financial Intermediary Compensation
Shares of the Funds are sold exclusively to certain insurance companies in connection with particular
Contracts. The Trust and its related companies may pay such insurance companies (or their related companies) for the sale of shares of the Funds and related services. Such insurance companies (or their related companies) may pay broker-dealers or other financial intermediaries (such as banks) that sell the Contracts for the sale of shares of the Funds and related services. When received by an
insurance company, such payments may be a factor that the insurance companies consider in including a Fund as an investment option in the Contracts. The
prospectus or other disclosures relating to a Contract may contain additional information about these payments. When received by a broker-dealer or other
intermediary, such payments may create a conflict of interest by influencing the broker-dealer or other intermediary and salespersons to recommend the Fund over other mutual funds available as investment options in the Contracts. Ask the salesperson or visit the financial intermediary's website for more information.
The Allianz Variable Insurance Products Trust
4