For those investors worried about downside in the market, AXA Equitable has designed a strategy that will absorb up to the first -10%, -15%, -20%, -25%, or -30% of any loss over a one, three, or five year period completely customizable depending on each client’s risk tolerance and time horizon.
How many investors would take the following deal? AXA agrees to cover the first 10% loss of the S&P 500 for each of the next five years in exchange for limiting upside of the S&P 500 to 10% each year for the next five years. In other words, if the S&P 500 were to lose 12% in one year, the client’s principal value would be down 2% (excess over the -10% buffer). However, if the S&P 500 was down 10% in one year, the client’s principal value would lose zero. In the other direction, if the S&P 500 was up 12%, the client’s principal balance would increase 10% (upside cap of 10% per year). If the S&P 500 was up 10%, the client’s principal balance would also be up 10%.
Investors are able to invest up to a Performance Cap Rate to potentially grow wealth for retirement, while still protecting a portion of their assets. We are able to balance risk versus reward by tracking up to nine indices, ranging in exposure from large cap to small cap asset classes through these Structured Capital Strategies.
Structured Capital Strategies are variable and index-linked deferred annuity contracts designed to balance personal risk tolerance with desire to access growth potential by combining protection features with opportunities to invest for growth.
Please RSVP to join us for lunch Tuesday, April 4th at 12:00 pm.