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How the Structured Investment Option Works

Hypothetical scenario: duration, % performance cap and % segment buffer.

0%
0%
15%
0%
0%
0%
22%
2%
20% Performance Cap Rate
20% Segment Buffer
The index loses 12%. The Segment Buffer absorbs -10% of the decline, leaving the investor with only a 2% loss. Segment Maturity Value: $98,000.
The index loses 8%. The -10% Segment Buffer absorbs the loss and the Segment’s rate of return is 0%. Segment Maturity Value: $100,000.
The index returns 0%, you will realize an 8% return, which is the Performance Cap Rate. Segment Maturity Value: $108,000.
The index returns 4%. Because the return is positive, the Segment rate of return is 8%. Segment Maturity Value: $108,000.
The index returns 11%. Because the return is positive, the Segment rate of return is 8%. Segment Maturity Value: $108,000.