The information listed here is shown for informational purposes to help investors understand recent trends for the indices. It is important to understand that this is not a projection of future Performance Cap Rates. Investors have the option to set a Performance Cap Threshold. The actual Performance Cap Rates declared on the Segment Start Date may vary from what is shown here. You will not know the actual Performance Cap Rates in advance. The daily cap rates shown here are calculated the same way as the declared Performance Cap Rates.
Please select from the drop down menu above to switch to another version of Structured Capital Strategies. You can customize and save your preference on your browser by selecting “Remember for next time” near the bottom of the page. Structured Capital Strategies® 16 contracts are generally applied for on or after 2/22/2016, depending on when Series 16 was approved in your state.
Performance Cap Rate — For Standard Segments and Choice Segments the Performance Cap Rate is the highest Segment Rate of Return that can be credited on a Segment Maturity Date. For Annual Lock Segments the Performance Cap Rate is the highest Annual Lock Yearly Rate of Return that can be applied on an Annual Lock Anniversary. The Performance Cap Rate is not an annual rate of return.
The cap rates are determined based on the index level, interest rates, and market implied volatility. The main drivers of the level of the cap rates are equity volatility and interest rate data sourced from banks. Higher volatility and higher interest rates lead to higher caps. In setting the Performance Cap Rates, we take into account that we incur expenses in connection with a contract, including insurance and administrative expenses. Also, Segment Types with greater downside protection will typically have lower Performance Cap Rates than other Segment Types that use the same index and duration but provide less downside protection. Please note that you are not investing directly in the applicable index or any underlying securities.
Prior to the Segment Start Date, you may elect a Performance Cap Threshold. The Performance Cap Threshold is the minimum Performance Cap Rate that you determine to be acceptable in allowing sweeps from the Segment Type Holding Account into a Segment. This means that you can determine a minimum level of return that meets your investment needs. If your Performance Cap Threshold is not met (the Performance Cap Rate is lower than your designated Performance Cap Threshold), your money will continue to be invested in the Segment Type Holding Account until it is met or the entire account value is transferred out of the Segment Type Holding Account. The Performance Cap Threshold is effective through the first scheduled sweep opportunity that is at least two months after the date on which the Performance Cap Threshold becomes effective. No amounts will sweep to the segment if the Performance Cap Threshold exceeds the Performance Cap Rate on that date. Any amount in the holding account will sweep into the segment on the segment start date following the expiration of the Performance Cap Threshold, unless a new Performance Cap Threshold is established prior to that date.
Definitions of Terms
Segment Type — Combination of the index option, duration and buffer you choose is what distinguishes your investment option.
Segment Buffer — Built-in feature, in which AXA Equitable will absorb up to the first -10%, -15%, -20%, -25% or -30% of any loss. You will absorb the loss in excess of your Segment Buffer.
Segment Duration — Segment Start Date to Segment Maturity Date, available in one, three, and five years.
Choice Segments (available for Series B) — Any Segment belonging to a Segment Type whose name begins with "Choice", also use the same index as the Standard Segments. Choice Segments are subject to application of the Choice cost. The cost to invest in a Choice Segment is an amount equal to 1% of the Segment Investment per year of duration of the Choice Segment. However, the Choice cost is waived if the Index Performance Rate is zero or negative at Segment Maturity.
Annual Lock Segment (available for Series B) — Provides a return that is cumulatively calculated based on Index performance each Annual Lock Period subject annually to the Performance Cap Rate and Segment Buffer. The minimum Performance Cap Rate for Annual Lock segment is 2%.
While you are protected from some downside risk, if the negative return is in excess of the Segment Buffer, there is a risk of a substantial loss of your principal.
Monthly Cap Rates Series B
This flyer provides the most recent Performance Cap Rates.
Market Trend Indicator Series B
This PDF includes the Market Trend Indicator (MTI) for Series B. The MTI helps investors understand recent trends for the indices in order to help with the setting of Performance Cap Thresholds.
Structured Capital Strategies® Fact Card - Series B
This flyer is one of eight slip sheets of the Structured Capital Strategies® - Series B sales kit that must be ordered together. This flyer provides a detailed summary of Structured Capital Strategies® - Series B.
Structured Capital Strategies® is a variable and index-linked deferred annuity contract and is a long-term financial product designed for retirement purposes. Simply stated, an annuity is a contract between you and an insurance company that lets you pursue the accumulation of assets. You may then take payments or a lump sum amount at a later date. In Structured Capital Strategies®, you invest to accumulate value on a tax-deferred basis in one or more of our variable investment options and/or in one of the Segments comprising the Structured Investment Option.
In setting the Performance Cap Rate, which is the maximum Segment Rate of Return that each Segment will be credited with on the Segment Maturity Date and is set at our sole discretion, we take into account that we incur expenses in connection with a contract, including insurance and administrative expenses. There are variable investment options available with this product that are not discussed in this material. Any withdrawal charge applicable to your variable investment option, Segment Type Holding Account or Structured Investment Option will be reflected in the cash value upon surrender and certain withdrawals. There is a Variable Investment Option fee deducted daily from the net assets in each variable investment option and Segment Type Holding Account that covers administrative expenses, sales expenses and certain expense risks. The variable investment option operating expenses, management fees, 12b-1 fees and investment-related expenses are reflected in the daily share price of each portfolio. Information on Structured Capital Strategies® fees and charges can be found in the accompanying prospectus and fact card.
The Structured Investment Option does not involve an investment in any underlying portfolio. Instead, it is an obligation and subject to the claims-paying ability of AXA Equitable Life Insurance Company.
It is important to know that variable annuities are subject to investment risks, including the possible loss of principal invested. Withdrawals from your contract value may be subject to withdrawal charges for Structured Capital Strategies Series B version. The taxable portion of any withdrawal from an annuity contract is ordinary income, not capital gain. You can access a free withdrawal amount up to 10% of the beginning-of-contract-year account value free of withdrawal charges. If you decide to withdraw prior to five years after making a contribution, you will incur a declining withdrawal charge, a percentage dependent on the year you withdraw. Withdrawal charges may be waived under certain circumstances. Note: a new withdrawal charge schedule will apply to each contribution as of the date received by AXA Equitable. If you withdraw during a Segment, the Segment Interim Value is the value of your investment prior to the Segment Maturity Date. The Segment Interim Value may be lower than your original investment in the Segment even where the index is higher at the time of the withdrawal, prior to maturity, than at the time of the original investment. See Segment Interim Value in the Important Terms section of the fact card. Partial withdrawals are permitted. Unless otherwise requested withdrawals are taken in the following order on a pro-rata basis: 1. Variable Investment Options (VIOs), 2. Segment Type Holding Account(s), 3. Segment(s). An additional 10% federal income tax penalty may also apply to withdrawals taken before age 59½.
Structured Capital Strategies®, from AXA Equitable, packages a growth strategy with tax deferral. There are several investment options available, some of which allow you to participate in the upside performance potential of indices that track certain domestic, international and commodities markets. Additionally, there is a built-in feature that provides some protection that can help reduce loss.
This is not a complete description of Structured Capital Strategies®. In order to fully understand Structured Capital Strategies® and how it works, it is important to read the accompanying prospectus and fact card.
The Performance Cap Rate is not known before the Segment starts. Therefore, you will not know in advance the upper limit on the return that may be credited to your Segment. Negative consequences may apply if for any reason amounts invested in a Segment are removed before the Segment Maturity Date. Withdrawals from an annuity contract are taxable as ordinary income, not as capital gain and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals may also be subject to contractual withdrawal charges. The contractual withdrawal charge declines from 5% over a five-year period for the Structured Capital Strategies® Series B version. The declining withdrawal charge for contract years 1-3 is 5%, for contract year 4 is 4%, for contract year 5 is 3% and thereafter there are no charges. See the accompanying Structured Capital Strategies® Fact Card and Prospectus for additional information on fees and charges associated with Structured Capital Strategies®.
For further information on the Performance Cap Rate and the risks and limitations with the Structured Capital Strategies® product, please refer to the accompanying Structured Capital Strategies® prospectus and fact card. This content is not a complete description of all material provisions of the Structured Capital Strategies® annuity contract. This material must be preceded or accompanied by a current Structured Capital Strategies® prospectus and any applicable supplements. The prospectus contains more complete information, including investment objectives, risks, charges, expenses, limitations and restrictions. Please read the prospectus and any applicable supplements, and consider this information carefully before purchasing a contract.
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), you should be aware that such annuities do not provide tax-deferral benefits beyond those already provided by the Internal Revenue Code. Before purchasing one of these annuities, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities with any other investment that you may use in connection with your retirement plan or arrangement.
AXA Equitable may at any time exercise its rights to discontinue, suspend or change acceptance of contributions/transfers, as well as change minimum and maximum contribution requirements and limitations. Please see the prospectus and supplemental materials for details. Certain features and benefits described herein may not be available in all jurisdictions. In addition, some distributors may eliminate and/or limit the availability of certain features or options, based on annuitant issue age or other criteria.
Not all types of contracts, features and benefits are available in all jurisdictions and all markets. We offer other variable annuity contracts with different fees, charges and features. Not every contract is available through the same selling broker/dealer. You can contact us at (212) 554-1234 to find out the availability of other contracts.
This material was prepared to support the promotion and marketing of AXA Equitable variable annuities. AXA Equitable, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Please consult your own independent advisors as to any tax, accounting or legal statements made herein.
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® 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®.
The Russell 2000® 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. The 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.
The NASDAQ 100 Price Return Index® (not available in all jurisdictions) includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications and biotechnology. Non-diversified investing may be focused in a smaller number of issues or one sector of the market that may make the value of the investment more susceptible to certain risks than diversified investing.
The 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 and accounting standards.
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 MSCI Emerging Markets Price Return Index (not available in all jurisdictions) is a free float-adjusted market capitalization index that is designed to measure equity market performance of 21 emerging market country indices, including Brazil, Russia, India, China and others in Southeast Asia, Eastern Europe, Latin America and Africa. International securities carry additional risks, including currency exchange fluctuation and different government regulations, economic conditions and accounting standards.
The iShares® Dow Jones U.S. Real Estate Index Fund (not available in all jurisdictions) seeks investment results that correspond generally to the performance of the Dow Jones U.S. Real Estate Index. The Index measures the performance of the Real Estate industry of the U.S. equity market, including real estate holding and developing and real estate investment trust (REITS) subsectors. The investment performance of the iShares® Dow Jones U.S. Real Estate Index Segment is based only on the closing share price of the Index Fund. The iShares® Dow Jones U.S. Real Estate Index Segment does not include dividends declared by the Index Fund. Non-diversified investing may be focused in a smaller number of issues or one sector of the market that may make the value of the investment more susceptible to certain risks than diversified investing.
The Financial Select Sector SPDR Fund (not available in all jurisdictions) seeks to closely match the returns and characteristics of the Financial Select Sector Index, which is the underlying index. The underlying index seeks to provide an effective representation of the financial sector of the S&P 500 Index, and includes companies from the following industries: commercial banks, capital markets, diversified financial services, insurance and real estate. The Financial Select Sector Fund may not fully replicate or may, in certain circumstances, diverge significantly from the performance of the index. Non-diversified investing may be focused in a smaller number of issues or one sector of the market that may make the value of the investment more susceptible to certain risks than diversified investing.
This Structured Capital Strategies® variable annuity is not sponsored, endorsed, authorized, sold or promoted by the Select Sector Trust, or SSgA FM. Neither the Select Sector Trust nor SSgA FM makes any representations or warranties to purchasers of the variable annuity or any member of the public regarding the advisability of investing in the variable annuity. Neither the Select Sector Trust nor SSgA FM has any obligation or liability in connection with the operation, marketing, trading or sale of the variable annuity.
Energy Select Sector SPDR Fund (Not available in all jurisdictions.) — Seeks to provide investment results that correspond to the price performance of the S&P® Energy Select Sector Index. The Energy Select Sector Index includes companies from the following industries: oil, gas, and consumable fuels and energy equipment and services. Because the return on your Segment Investment (subject to the Performance Cap and downside Segment Buffer protection) is linked to the performance of the Energy Select Sector SPDR® Fund and not the underlying index, the return on your Segment Investment may be less than that of an alternative investment linked directly to the underlying index or the components of the underlying index. The investment performance of the Energy Select Sector SPDR® Fund Segment is only based on the closing share price of the Fund. The Energy Select Sector SPDR® Fund Segment does not include dividends and other distributions declared by the Fund. Non-diversified investing may be focused in a smaller number of issues or one sector of the market that may make the value of the investment more susceptible to certain risks than diversified investing.
Gold SPDR Shares (Not available in all jurisdictions.) — Seek to reflect the performance of the price of gold bullion. The value of the gold held by the fund will be determined based on the London Bullion Market Association (LBMA) Gold Price PM USD. Because the return on your Segment Investment (subject to the Performance Cap and downside Segment Buffer protection) is linked to the performance of the SPDR® Gold Shares and not the performance of the price of gold, the return on your Segment Investment may be less than that of an alternative investment linked directly to the performance of the price of gold. The investment performance of the SPDR® Gold Shares Segment is only based on the closing share price of the Shares. The SPDR® Gold Shares Segment does not include dividends and other distributions declared by the Shares. Non-diversified investing may be focused in a smaller number of issues or one sector of the market that may make the value of the investment more susceptible to certain risks than diversified investing.
All contract and rider guarantees, including optional benefits and any fixed subaccount crediting rates or annuity payout rates, are backed by the claims-paying ability of AXA Equitable. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability of AXA Equitable.
Structured Capital Strategies® (February 2016 version) is issued by AXA Equitable Life Insurance Company, New York, NY 10104 and co-distributed by affiliates AXA Advisors, LLC (members FINRA, SIPC) and AXA Distributors, LLC. Visit our website at www.axa.com. You can contact us at (212) 554-1234 to find out the availability of other contracts.
Contract form #s: 2016SCSBASE-I-B-[A/B], 2016SCSBASE-I-C-[A/B], 2016SCSBASE-I-ADV-[A/B] and any state variations.
“AXA” is the brand name of AXA Equitable Financial Services, LLC and its family of companies, including AXA Equitable Life Insurance Company (NY, NY), AXA Advisors, LLC, and AXA Distributors, LLC. AXA S.A. is a French holding company for a group of international insurance and financial services companies, including AXA Equitable Financial Services, LLC. The obligations of AXA Equitable Life Insurance Company are backed solely by their claims-paying ability.
© 2016 AXA Equitable Life Insurance Company. All rights reserved. Structured Capital Strategies is patent-approved. Patent no. 8,645,261.
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