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AXA Equitable
Structured Capital Strategies Series ADVSM Upside Market Potential / Some Downside Protection
EQUI-VEST® Variable Annuities
Introducing the Structured Investment Option
Innovative, new and offered within the EQUI-VEST® series of variable deferred annuities, the Structured Investment Option (SIO) is an investment option offered through employer-sponsored retirement savings plans. The SIO tracks an equity index, providing potential upside growth (up to a specified limit) and some downside protection.
If you are concerned you might not be able to earn or save enough for retirement, our Structured Investment Option might be the right addition to your retirement portfolio.
For more information about the EQUI-VEST® series of variable annuities and the SIO, including product prospectuses, click here.
A variable deferred annuity is a long-term financial product that is designed for retirement purposes. In essence it is a contractual agreement in which payments are made to an insurance company, which agrees to pay an income stream or lump-sum amount at a later date. Investments in a variable annuity are subject to market risk including loss of capital. There are contract limitations, fees, and charges associated with variable deferred annuities, which include, but are not limited to mortality and expense risk charges, withdrawal charges, and administrative fees. The SIO is not available in all states and on all EQUI-VEST® contracts. For costs and more complete details, contact your Financial Professional.
EQUI-VEST® is a variable deferred annuity that can be used to fund a tax-deferred retirement plan. Annuites used to fund these plans do not offer any extra tax benefits. If you are buying an EQUI-VEST® variable annuity to fund a plan, you sould do so for its features and benefits other than tax deferral.
Hypothetical Assumptions: Index: S&P 500 Price Return Index Segment Duration: 1 Year Performance Cap Rate: 7%
Segment Buffer: -10%
- Scenario 1
- Scenario 2
- Scenario 3
- Scenario 4
Let's get started.
These examples demonstrate the SIO in action under four hypothetical market scenarios.
In each case, the S&P 500 Price Return Index tracks market performance - with 1-year
Segment Duration, Performance Cap Rate of 7% and Segment Buffer of -10%
Click on Scenario 1 to get started
closeLet's get started.
Click Scenario 1
S&P 500 Price Return
Index Rate of Return is
10% over the one-year
Segment Duration. The
investor's rate of return is
7%, which equals the
Performance Cap Rate —
the maximum rate of
return that this Segment
can earn.S&P 500 Price Return
Index Rate of Return is 5%
over the one-year Segment
Duration. This return is
less than the Segment's
Performance Cap Rate, so
the investor's rate of
return equals the 5% S&P
500 Price Return Index
rate of return.S&P 500 Price Return
Index Rate of Return is
-10% over the one-year
Segment Duration. The
investor has no loss
because the -10%
Segment Buffer absorbs
the first 10% of
negative return.S&P 500 Price Return Index Rate
of Return is -20% over the one-
year Segment Duration. The -10%
Segment Buffer takes effect. The
investor's rate of return is -10%,
which is the difference between
the S&P 500 Price Return
Index's rate of return and the
-10% Segment Buffer.
-
10%7%
-
5%5%
-
-10%0%
-
-20%-10%
S&P 500 Price Return Index—Comprises 500 of the largest companies in leading industries of the U.S. economy. Larger, more established companies may not be able to attain potentially higher growth rates of smaller companies, especially during extended periods of economic expansion.
Segment Duration – the segment start date to segment maturity date.
Segment Buffer—The portion of any negative Index Performance Rate that AXA Equitable absorbs on a Segment Maturity Date. It helps protect your investment when the performance of the S&P 500 Price Return Index declines. Each Segment has a Segment Buffer of -10%. AXA Equitable will absorb up to the first 10% of loss. You will absorb any loss in excess of the Segment Buffer. Please note that this could mean a substantial loss of principal in certain cases
Segment Rate of Return—Is equal to the S&P 500 Price Return Index rate of return up to the Performance Cap Rate, and subject to the -10% Segment Buffer. Note, too, that the Segment performance is measured from the Segment Start Date to the Segment Maturity Date. The Structured Investment Option does not involve an investment in an underlying portfolio. It is an obligation and subject to the claims-paying ability of AXA Equitable Life Insurance Company. The return of the Structured Investment Option may not be identical to the return of the S&P 500 Price return index.
Segment—An investment option AXA Equitable establishes with a specific index, Segment Duration, Segment Buffer, Segment Maturity Date, and Performance Cap Rate. AXA Equitable may discontinue contributions to, and transfers among, investment options, or make other changes in contribution and transfer requirements and limitations. Transfers are not allowed into or out of segments. AXA Equitable may suspend or discontinue a new Segment at any time.
Segment Holding Account—Your contribution or the money that you wish to transfer into a Segment will be held in this account until it is ready to be swept or transferred into the chosen Segment on the next available Segment Start Date if all participation requirements are met. The Segment Holding Account is part of the EQ/Money Market Variable Investment Option.
Segment Start Date—Is the date a Segment is scheduled to start and is generally the 15th of each month. On the Segment Start Date, all money in the Segment Holding Account as of the prior business day will be swept into a Segment if the Segment is available and all participation requirements are met
Performance Cap Rate- The maximum potential "ceiling" or cap that you can get
from index gains. This rate is locked in on the Segment Start Date. The Performance
Cap Rate is a rate of return from the Segment Start Date to the Segment Maturity
Date. (Please note that you are not investing directly in the S&P 500 Price Return
Index. You will not know what the Performance Cap Rate is until the Segment Start
Date.) Your Segment Rate of Return may be limited by the Performance Cap Rate,
which may be lower than performance you may otherwise have experienced if you
invested in a mutual fund or exchange-traded fund designed to track the
performance of the S&P 500 Price Return Index.
Amounts allocated to a Segment are held in a Segment Holding Account until the Segment Start Date. Note that a daily charge is deducted
from the Segment Holding Account. While this charge would not reduce the Segment rates of return shown in these examples, It would reduce
the overall return in the contract/certificate. Past performance is no guarantee of future results.
FAQs and informational materials
back to chartFor further background and information on the SIO, please
click to view the above linked fact card and comprehensive
FAQs piece.
Contact Us
back to chartFor more information on the
EQUI-VEST® Structured Investment Option,
please call the EQUI-VEST® Sales Desk at
(800) 628-6673.
What You Need To Know
Here's a quick recap of some important facts and features of the SIO
Available with EQUI-VEST® series 201,900 and 901 variable deferred annuities for 403(b) and 457(b) employer-sponsored retirement savings plans
Developed to offer investors a more conservative way to save for retirement in equity-based markets
Built for flexibility to accommodate change in a constantly evolving and sometimes volatile market
Offers both upside growth potential up to a cap, with some downside protection