Summary Prospectus
AZL® Moderate Index Strategy Fund
May 1, 2023
AZL® Moderate Index Strategy 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 long-term capital appreciation.
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)
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Management Fee
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0.20%
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Other Expenses
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0.02%
|
|
Acquired Fund Fees and Expenses(1)
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0.58%
|
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Total Annual Fund Operating Expenses
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0.80%
|
|
Fee Waiver(2)
|
-0.15%
|
|
Total Annual Fund Operating Expenses After Fee Waiver(2)
|
0.65%
|
(1)
Because Acquired Fund Fees and Expenses are not included in the Fund’s
Financial Highlights, the Fund’s total annual fund operating expenses do not correlate to the ratios of expenses to average net assets shown in the Financial
Highlights table.
(2)
The Manager and the Fund have entered into a written agreement reducing the
management fee to 0.05% 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
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5 Years
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10 Years
|
|
$66
|
$240
|
$429
|
$976
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its
portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 8% of the average value of its portfolio.
The Allianz Variable Insurance Products Trust
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Summary Prospectus
AZL® Moderate Index Strategy Fund
Investments, Risks, and Performance
Principal Investment Strategies of the Fund
The Fund is a fund of funds that seeks to achieve its investment objective by investing primarily in a
combination of five underlying index funds:
|
Fund
|
Target Allocation
|
|
AZL Enhanced Bond Index Fund
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40%
|
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AZL S&P 500 Index Fund
|
31.5%
|
|
AZL International Index Fund
|
15%
|
|
AZL Mid Cap Index Fund
|
9%
|
|
AZL Small Cap Stock Index Fund
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4.5%
|
The AZL Enhanced Bond Index Fund is a bond index fund, subadvised by BlackRock Financial Management, LLC; the
other four underlying funds are equity index funds, subadvised by BlackRock Investment Management, LLC. Therefore, under normal market conditions, the Fund will allocate approximately 60% of its assets in the underlying equity index funds and approximately 40% of its assets in the underlying bond index fund. These target allocations represent the Fund’s long-term
strategic asset allocation, which is not expected to change under normal market conditions.
The investment results of the underlying funds will vary. As a result, the Manager monitors the actual
allocations to the underlying funds daily and periodically adjusts the actual allocations to attempt to achieve the target allocation. Generally, the Manager will seek to maintain the actual fund allocations to target using the cash flows that result from contract holders buying or selling shares in the Fund. However, if cash flows were insufficient to maintain the target allocations, the Manager would then buy or sell underlying funds as necessary to attempt to return the Fund’s actual asset allocations to the targets.
Generally, the actual allocations will not be more than 10% above or below the targets.
The AZL Enhanced Bond Index Fund under normal circumstances invests in a combination of securities with an
overall weighting close to the capitalization weights of the Bloomberg U.S. Aggregate Bond Index (the “Index”). Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade debt securities (those of medium and high quality) of all types and repurchase agreements for those securities. Further, under normal circumstances, the Fund invests at
least 80% of the value of its net assets in securities or other financial instruments that are components of or have economic characteristics similar to the
securities included in the Index. The subadviser of the AZL Enhanced Bond Index Fund uses the Index as a guide in structuring the Fund and selecting its
investments and manages the Fund to have similar overall interest rate risk to the Index, with the investment objective of seeking to exceed the total return of
the Index.
The AZL S&P 500 Index Fund under normal circumstances invests at least 80% of the value of its net
assets in the securities of or in a statistically selected sampling of the securities of companies included in the S&P 500 Index or in derivative instruments linked to that Index.
The AZL Mid Cap Index Fund under normal circumstances invests at least 80% of the value of its net assets in
a statistically selected sampling of equity securities of companies included in the S&P 400 Index and in derivative instruments linked to the S&P 400 Index, primarily futures contracts.
The AZL Small Cap Stock Index Fund under normal market conditions invests at least 80% of its assets, plus
any borrowings for investment purposes, in investments of small-capitalization companies, which for this purpose are companies with market capitalizations (the total market value of a company’s outstanding stock) at the time of purchase included in the S&P SmallCap 600 Index.
The AZL International Index Fund under normal circumstances invests at least 80% of the value of its net
assets in a statistically selected sampling of equity securities of companies included in the MSCI EAFE Index and in derivative instruments linked to the MSCI EAFE Index, primarily futures contracts.
Principal Risks of Investing in the Fund
The price per share of the Fund will fluctuate with changes in the value of the investments held by the
Fund. You may lose money by investing in the Fund. An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. There is no guarantee that the Fund will achieve its objective.
The Allianz Variable Insurance Products Trust
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Summary Prospectus
AZL® Moderate Index Strategy Fund
The following is a summary of the principal risks to which the Fund’s portfolio as a whole is subject, any of
which may adversely affect the Fund’s net asset value (NAV), yield, total return and ability to achieve its investment objective. As changes occur in a Fund’s portfolio holdings, the extent to which the portfolio is subject to each of these risks may also change.
Allocation Risk – The Manager’s decisions regarding how the Fund’s assets should be allocated among the various underlying funds, may cause the Fund to
underperform other funds with similar investment objectives. There can be no guarantee that investment decisions made by the Manager will produce the desired
results. Further, because the Manager has limited discretion to change the overall asset allocation between equity funds and fixed income funds under normal market conditions, the Fund may underperform comparable funds of funds for which the fund’s manager has such discretion to adjust allocations.
Fund of Funds Risk – The Fund, as a shareholder of the underlying funds, indirectly bears its proportionate share of any investment management fees and other
expenses of the underlying funds. Further due to the fees and expenses paid by the Fund, as well as small variations in the Fund’s actual allocations to the
underlying funds and any cash held in the Fund’s portfolio, the performance and income distributions of the Fund will not be the same as the performance and
income distributions of the underlying funds allocated according to the target allocations described here.
In addition, the Fund bears the investment risks of the investments of the underlying funds. The principal
risks associated with the underlying funds include:
Market Risk
– The market value of portfolio securities may go up or down, sometimes rapidly and unpredictably.
Issuer Risk
– The value of a security may decline for a number of reasons directly related to the issuer of the security.
Index Fund Risk – The Underlying Funds do not attempt to manage market volatility or reduce the effects of poor performance. In addition, factors such as
fund expenses, selection of a representative portfolio, changes in the composition of the index, or the timing of purchases or redemptions of fund shares may
affect the correlation between the performance of the index and the fund’s performance.
Selection Risk – Because the AZL Enhanced Bond Index Fund is actively managed, there can be no guarantee that investment decisions made for the Fund will
produce the desired results. Although the Fund seeks to provide a total return in excess of the Index, market conditions or implementation of the Fund’s
investment strategy may result in losses, and the Fund may not achieve the desired correlation with and/or may not outperform the Index.
Capitalization Risk – Investing in small- to mid-sized companies creates risk because smaller companies may have unpredictable or limited earnings, and their
securities may be less liquid or experience more volatile prices than those of large companies.
Foreign Securities Risk – Investing in the securities of non-U.S. issuers involves a number of risks, such as fluctuations in currency values, adverse political,
social or economic developments, and differences in social and economic developments or policies.
Risks of Investing in Japan – Japan may be subject to political, economic, nuclear, and labor risks, among others. Any of these risks, individually or in the
aggregate, can impact an investment made in Japan. Since 2000, Japan’s economic growth rate has generally remained low relative to other advanced economies, and
it may remain low in the future. The Japanese economy faces several concerns, any of which could negatively affect the value of Japanese investments. In addition,
Japan’s labor market is adapting to an aging workforce, declining population, and demand for increased labor mobility. These demographic shifts and fundamental structural changes to the labor market may negatively impact Japan’s economic competitiveness.
European Investment Risk – Investments in certain countries in the European Union (the “EU”) are susceptible to high economic risks associated with high levels of
debt, such as investments in sovereign debt of Greece, Italy and Spain. Efforts of the member countries to further unify their economic and monetary policies may
increase the potential for the downward movement of one member country’s market to cause a similar effect on other member countries’ markets. Separately, the EU faces issues involving its membership, structure, procedures and policies. The exit of one or more member countries from the EU, such as the exit of the United Kingdom (known as “Brexit”), could place its currency and banking system in jeopardy. An exit
by other member countries could likely result in increased volatility, illiquidity and potentially lower economic growth in the affected markets, which may
adversely affect the Fund’s investments.
The Allianz Variable Insurance Products Trust
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Summary Prospectus
AZL® Moderate Index Strategy Fund
Currency Risk
– Investing in securities that trade in and receive revenues in foreign currencies creates risk because foreign currencies may decline relative to the U.S.
dollar, resulting in a potential loss to a fund. In the case of hedging positions, the U.S. dollar may decline in value relative to the currency that has been
hedged.
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.
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.
Sovereign Debt Risk – Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on
its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the
governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or
other multilateral agencies.
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.
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.
Income Risk
– Falling interest rates may cause a fund’s income to decline.
Call Risk –
If interest rates fall, issuers of callable debt securities are more likely to prepay prior to the maturity date. The fund may not be able to reinvest the
proceeds from the prepayment in investments that will generate the same level of income.
Extension Risk – If interest rates rise, debt securities may be paid in full more slowly than anticipated. Periods of low relative interest rates or
inflationary trends may increase the risks associated with rising interest rates.
Derivatives Risk – Investing in derivative instruments involves risks that may be different from or greater than the risks associated with investing
directly in securities or other traditional investments. Derivatives are subject to a number of other risks, such as liquidity risk, interest rate risk, market
risk, credit risk, counterparty risk, and selection risk. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the
value may not correlate perfectly with the underlying asset, rate, or index. Using derivatives may result in losses, possibly in excess of the principal amount invested.
Futures Risk –
The value of futures contracts depend primarily upon the price of the securities, indexes, commodities, currencies or other instruments underlying them. Price
movements are also influenced by, among other things, interest rates, changing supply and demand relationships, trade, fiscal, monetary, and exchange control
programs and policies of governments, and national and international political and economic events and policies. The cost of futures may also be related, in part, to the degree of volatility of the underlying indices, securities, currencies, or other assets. Accordingly, futures on highly volatile indices, securities, currency, or other assets may be more expensive than futures on other investments. Changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index, and a fund could
lose more than the principal amount invested.
Leveraging Risk
– Certain Underlying Funds may engage in certain kinds of transactions, including the use of derivatives, that may give rise to a form of leverage. The use of
leverage may require a fund to liquidate a portfolio position at a disadvantageous time or may exaggerate the effect of any increase or decrease in the value of
the Fund’s portfolio securities.
Liquidity Risk
– An investment that is difficult to purchase or sell may have an adverse effect on the fund’s returns.
Mortgage-Related and Other Asset-Backed Securities Risk – Investing in mortgage-related or other asset-backed securities involves a variety of risks
associated with the credit markets, such as rising or falling interest rates, increases in the rate of defaults or prepayments, and the quality of the pool of
mortgages (subprime risk) or other assets that backs the security.
The Allianz Variable Insurance Products Trust
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Summary Prospectus
AZL® Moderate Index Strategy Fund
Portfolio Turnover Risk – A Fund may trade portfolio securities frequently, which could result in higher transaction costs and could adversely affect the fund’s
performance.
Privately Placed Securities Risk – Certain Underlying Funds may invest in privately placed securities, which are subject to resale restrictions.
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.
Collateralized Debt Obligations Risk – In addition to the typical risks associated with fixed-income securities and asset-backed securities, collateralized debt obligations,
including CLOs, carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to
make interest or other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized
statistical rating organization; (iii) a fund may invest in tranches of CDOs that are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly different than those predicted by financial models;
(vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test
failures; and (viii) the CDO’s manager may perform poorly.
Technology Sector Risk – Technology companies, including information technology companies, may have limited product lines, markets, financial resources or
personnel. Technology companies typically face intense competition and potentially rapid product obsolescence. They are also heavily dependent on intellectual
property rights and may be adversely affected by the loss or impairment of those rights.
Real Estate Investments Risk – The performance of investments in real estate depends on the overall strength of the real estate market, the management of real estate
investments trusts (REITs), and property management, all of which can be affected by a variety of factors, including national and regional economic conditions.
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, the S&P 500® Index. The Fund’s performance also is compared to the Bloomberg U.S. Aggregate Bond Index, which shows how the Fund’s performance compares with the returns of a broad
index of investment-grade fixed-rate issues, and to a Moderate Composite Index, which shows how the Fund’s performance compares with a composite index composed of
the S&P 500 Index (60%) and the Bloomberg U.S. Aggregate Bond Index (40%) in proportions similar to the equity to fixed income allocation of the Fund.
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 October 14, 2016, the Fund was subadvised by Invesco Advisers, Inc., managed pursuant to different investment strategies, and known as the AZL Invesco Equity and Income Fund. Consequently, the performance information shown below for periods prior to October 14, 2016, reflects the Fund’s prior investment strategies and not its current investment strategies.
Prior to October 14, 2016, the Fund was subadvised by Invesco Advisers, Inc., managed pursuant to different investment strategies, and known as the AZL Invesco Equity and Income Fund. Consequently, the performance information shown below for periods prior to October 14, 2016, reflects the Fund’s prior investment strategies and not its current investment strategies.
The Allianz Variable Insurance Products Trust
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Summary Prospectus
AZL® Moderate Index Strategy Fund
Performance Bar Chart and Table
Calendar Year Total Return
Highest and Lowest Quarter Returns (for periods shown in the bar chart)
|
Highest (Q2, 2020)
|
13.34%
|
|
Lowest (Q1, 2020)
|
-13.36%
|
Average Annual Total Returns
|
|
One Year Ended
December 31, 2022
|
Five Years Ended
December 31, 2022
|
Ten Years Ended
December 31, 2022
|
|
AZL Moderate Index Strategy Fund
|
-15.37%
|
3.90%
|
7.02%
|
|
S&P 500 Index*
|
-18.11%
|
9.42%
|
12.56%
|
|
Bloomberg U.S. Aggregate Bond Index*
|
-13.01%
|
0.02%
|
1.06%
|
|
Moderate Composite Index*
|
-15.91%
|
6.07%
|
8.14%
|
*
Reflects no deduction for fees, expenses, or taxes.
Management
Allianz Investment Management LLC (the "Manager") serves as the investment adviser to the Fund.
The Fund’s portfolio managers are: Brian Muench, CFA, president of the Manager and portfolio manager, since
October 2016, and Brian Mong, CFA, portfolio manager, since April 2020.
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
The Allianz Variable Insurance Products Trust
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Summary Prospectus
AZL® Moderate Index Strategy Fund
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
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