Axa Equitable has launched Structured Capital Strategies, a variable annuity for investors seeking equity and commodity index-linked, tax-deferred growth potential with levels of downside protection.
Structured Capital Strategies features a built-in downside buffer that reduces or may eliminate the negative impact of market volatility to the first ten per cent to 30 per cent of loss in index value, depending on the investment option makeup.
There is also a performance cap rate on the upside appreciation, which on 15 October was set at 12 per cent for the One Year S&P 500 Index Segment with a -10 per cent segment buffer.
The downside segment buffers provide options for investors looking to build a portfolio via domestic, international and commodities indices over varying time horizons.
"We developed Structured Capital Strategies in response to investors’ heightened fear of market risk," says James Shepherdson, president of retirement savings at Axa Equitable. "The problem is you can’t entirely eliminate market risk without also eliminating market reward. This is a product that provides a way to help strike an acceptable risk-reward balance for someone trying to achieve tax-deferred growth with some measure of downside protection."
With Structured Capital Strategies, individual investors can participate in the following indices: S&P 500 Price Return Index, Russell 2000 Price Return Index, MSCI EAFE Price Return Index, London Gold Market Fixing Ltd. PM Fix Price/USD (Gold Index), Nymex West Texas Intermediate Crude Oil Generic Front Month Futures (Oil Index).