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AXA Equitable Introduces Structured Capital StrategiesSM ADV for Fee-Based Advisors
Product Offers Clients a Risk-Adjusted Investment Option with Tax Deferral
NEW YORK – AXA Equitable Life Insurance Company announced today the introduction of SM ADV, a product designed for fee-based advisors who are seeking equity and commodity index-linked growth potential for their clients with some downside protection. The product is available to fee-based advisors. It is initially being launched through Commonwealth Financial Network, the nation’s largest, privately-held independent broker-dealer and Registered Investment Adviser.
Structured Capital Strategies ADV’s main feature is its Structured Investment Option that allows clients to participate in the performance of equity and commodity indices up to a cap and with a downside buffer. The built-in buffer protects the initial negative 10, 20 or 30 percent of loss in index value, depending on the investment option makeup. The downside buffer works in tandem with a Performance Cap Rate on the upside market potential.
“Structured Capital Strategies ADV represents a unique, tax-deferred option for investors who are seeking an acceptable risk-reward balance,” said Nick Lane, president of the Retirement Savings division at AXA Equitable. “This product, introduced through our partnership with Commonwealth Financial Network, gives fee-based advisors a new way to help shield their clients from some loss and ease them into investing for growth.”
Investment options in Structured Capital Strategies ADV include linked participation in the following equity and commodity indices, with 15 different segment types in durations of 1, 3 and 5 years:
- S&P 500® Price Return Index
- Russell 2000® Price Return Index
- MSCI EAFE Price Return Index
- Gold Index - London Gold Market Fixing Ltd. PM Fix Price/USD. For IRA accounts only
- Oil Index - NYMEX West Texas Intermediate Crude Oil Generic Front Month Futures. For IRA accounts only.
“We’re excited to add AXA Equitable’s innovative index-linked investment strategy to Commonwealth Financial Network’s product platform,” said Ethan Young, manager of Annuity Research at Commonwealth. “For fee-based advisors, Structured Capital Strategies ADV offers a compelling diversification choice for clients who have an appetite for tax-deferred investing but are risk averse and want some protection against market loss.”
Segments in the product’s Structured Investment Option are made available for new investments on the 15th of the month or the next business day, at which time the Performance Cap Rate is also set. At the end of each 1-, 3- or 5-year segment period, investors have the flexibility to re-allocate the maturity value of the segment to a new segment or transfer their account value to other investment options, depending on their needs and objectives.
This is not a complete description of the Structured Capital Strategies ADV variable annuity. For more details, including investment objectives, risks and expenses, please refer to the Structured Capital Strategies ADV prospectus. For a prospectus, contact your financial professional. Investors should read the prospectus carefully before investing.
About Structured Capital Strategies SM ADV Series
Structured Capital Strategies(SM) ADV series is issued by AXA Equitable Life Insurance Company and distributed by AXA Distributors, LLC New York, NY 10104. Structured Capital Strategies is a service mark of AXA Equitable Insurance Company.
The Structured Investment Option (SIO) within SCS is an option which permits the contract owner to invest in one or more segments, each of which provides performance tied to the performance of a securities or commodities index for a set period (1, 3, or 5 years). Additionally, unlike an index fund, the SIO provides a return at maturity designed to provide a combination of protection against certain decreases in the index and a limitation on participation in certain increases in the index.
The Structured Investment Option does not involve an investment in any underlying portfolio. Instead, it is an obligation of and subject to the claims paying ability of AXA Equitable Life Insurance Company.
There is a risk of a substantial loss of your principal because you agree to absorb all losses to the extent they exceed the protection provided by the Structured Investment Option at maturity. If you would like a guarantee of principal, we offer other products that provide such guarantees.
AXA Equitable Life Insurance Company has sole legal responsibility to pay amounts it owes under the contract. An owner should look to the financial strength of AXA Equitable for its claims paying ability.
The Performance Cap Rate is the maximum potential “ceiling” or cap that an investor may get from Index gains.
The 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 applicable index.
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.
Russell 2000® Price Return Index — Tracks the performance of small-cap companies. Stocks of small- and mid-size companies have less liquidity than those of larger companies and are subject to greater price volatility than the overall stock market. Smaller company stocks involve a greater risk than is customarily associated with more established companies.
MSCI EAFE Price Return Index — Is a sampling of securities deemed by MSCI as designed to measure the equity market performance of the developed European, Australasian and Far East (EAFE) markets. Australasia includes Australia, New Zealand and neighboring islands of the South Pacific. International securities carry additional risks, including currency exchange fluctuation and different government regulations, economic conditions or accounting standards.
London Gold Market Fixing Ltd PM Fix Price/USD (Gold Index) (Available in IRA contracts only. Not available in all jurisdictions.) — Is an international benchmark for the price of Gold. Because this investment segment is tracked to the commodities industry it can be significantly affected by commodity process, world events, import controls, worldwide competition, government regulations and economic conditions. Apart from the risks associated with general commodity investing, there are risks to investing in the common stocks of commodity-producing companies. You should be willing to accept the risks that come with exposure to foreign and emerging markets, including political, economic and currency volatility.
NYMEX West Texas Intermediate Crude Oil Generic Front Month Futures (Oil Index) (Available in IRA contracts only. Not available in all jurisdictions.) — Is the underlying commodity index of oil futures contracts. Risks involved with futures contracts include imperfect correlation between the change in the market value of the stocks held by the portfolio and the prices of futures contracts and options, and the possible lack of a liquid secondary market for futures or options contracts, and the resulting inability to close a futures contract prior to its maturity date. Also, index options, over-the-counter options, and options on futures are exposed to additional volatility and potential losses.
S&P®, Standard & Poor’s®, S&P 500® and Standard & Poor’s 500® are trademarks of Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) and have been licensed for use by AXA Equitable. Structured Capital Strategies(SM) is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s does not make any representation regarding the advisability of investing in Structured Capital Strategies(SM) ADV. The Product referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Product or any index on which such Product is based. The prospectus contains a more detailed description of the limited relationship MSCI has with AXA Equitable and any related products. The Russell 2000® Index is a trademark of Russell Investments and has been licensed for use by AXA Equitable. The Product is not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the Product.
AXA Equitable may discontinue, suspend, or change contributions and transfers among investment options or make other changes in contribution and transfer requirements and limitations. AXA Equitable, upon advance notice, reserves the right to discontinue, suspend or change Segment offerings.
About Commonwealth Financial Network
Founded in 1979, Commonwealth Financial Network, member FINRA/SIPC, and a registered investment adviser, is the nation’s largest, privately held independent broker/dealer and Registered Investment Adviser, with headquarters in Waltham, Massachusetts and San Diego, California. Commonwealth was ranked “Highest in Independent Advisor Satisfaction among Financial Investment Firms” by J.D. Power and Associates. The firm supports more than 1,400 independent registered representatives nationwide and makes available a comprehensive array of financial products and services. For more information, please visit www.commonwealth.com.
Commonwealth Financial Network received the highest numerical score in the independent advisor segment in the proprietary J.D. Power and Associates 2010 Financial Advisor Satisfaction Study(SM). Study based on 2,863 total responses and measures overall financial advisor satisfaction among advisors registered with the Financial Industry Regulatory Authority (FINRA) investment firms. Proprietary study results are based on experiences and perceptions of financial advisors surveyed in February–June and July–August, 2010. Your experiences may vary. Visit jdpower.com.
About AXA Equitable
In business since 1859, AXA Equitable Life Insurance Company (NY, NY) is a leading financial protection company and one of the nation’s premier providers of life insurance, annuity, and financial products and services. The company’s products and services are distributed to individuals and business owners through its retail distribution channel, AXA Advisors, LLC (member FINRA, SIPC) and to the financial services market through its wholesale distribution channel, AXA Distributors, LLC.
Find AXA Equitable on Facebook and Twitter or visit the company’s multi-media newsroom The Source @ AXA Equitable.
AXA Equitable, a subsidiary of AXA Financial Inc., is part of the global AXA Group, a worldwide leader in financial protection strategies and wealth management. “AXA Group” refers to AXA, a French holding company for an international group of insurance and financial services companies together with its direct and indirect consolidated subsidiaries. For more information, visit www.axa-equitable.com.
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