AXA Equitable Life Insurance Company recently announced the introduction of Structured Capital Strategies 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 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. For the June 15, 2011 S&P 500 Index one-year investment option, for example, a client would have downside protection for the first 10 percent of any loss with a minimum 10 percent cap on the investment upside.
Recommended For You
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 one, three, and five 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)
According to Commonwealth Financial Network, Structured Capital Strategies ADV offers a compelling diversification choice for fee-based advisors with clients who have an appetite for tax-deferred investing but are risk averse and want some protection against market loss. The one, three, and five-year durations appeal to those clients who are looking for growth but don't want a lifetime income product.
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 one, three, or five-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.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
