Investment Edge®Performance Cap Rates

In the Investment Edge® variable annuity, you have access to 100+ variable investment options as well as Structured Investment Options.  For the Structured Investment Options, there are Segment Investments for which the upside potential is reflected in the Performance Cap Rates. The Performance Cap Rates are set on the first and third Thursday of each month for the following Segment offering. Funds must be received prior to the Segment Start Date to participate in the Segment offering.

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.

The Performance Cap Rates reflect the potential upside for the Segment Investment. The Performance Cap Rates are set on the first and third Thursday of each month for the following Segment offering. Funds must be received prior to the Segment Start Date to participate in that Segment offering.

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.

The Structured Investment Option (SIO)1 is an investment option available within certain EQUI-VEST® series of variable deferred annuities. The SIO enables you to seek growth, up to a limit, with some downside protection.

A variable deferred annuity is a long-term financial product that is designed for retirement purposes. There are fees and charges associated with variable annuities, which include a contract fee that covers administrative expenses, sales expenses and certain expense risks.

Some Segments may not be available in all firms and jurisdictions. 

In order to participate in the Segment offering, funds must be in the account before the Segment Start Date provided that all participation requirements are met. Allocation instructions changes made on Segment Start Date will apply to the next Segment Offering.

"N/A" indicates that the Segment was not offered/suspended. Equitable Financial Life Insurance Company will suspend a Segment if the Performance Cap Rate on the Segment Start Date would be less than the minimum. 

Performance Cap Rates do not represent annual rates of return.

Definition of Terms

Performance Cap Rate — The highest Index Performance Rate that can be used to calculate the Segment Rate of Return. We set the Performance Cap Rate for each new Segment on the Segment Start Date. We reserve the right to set the Performance Cap Rate at any time prior to the Segment Start Date. The Performance Cap Rate may vary for each Segment.  

Segment Buffer —The portion of any negative Index Performance Rate that the Segment Buffer absorbs on a Segment Maturity Date for a particular Segment. Any percentage decline in the Segment’s Index Performance Rate that is in excess of the Segment Buffer will not be absorbed.

Segment Duration — Period from Segment Start Date to Segment Maturity Date.

Segment Type — Comprises all Segment Options having the same Index, Segment Duration and Segment Buffer. Each Segment Type has a corresponding Segment Type Holding Account.

Standard Segment – Any Segment that is not a Step Up Segment. For Standard Segments, the Segment Rate of Return is equal to the Index Performance Rate (the percentage change in the value of the related Index from the Segment Start Date to the Segment Maturity Date), subject to the Performance Cap Rate and Segment Buffer minus the Contract Fee.

Step Up Segment — Any Segment belonging to a Segment Type whose name includes “Step Up.” For Step Up Segments, the Segment Rate of Return is equal to the Performance Cap Rate if the Index Performance Rate for that Segment is greater than or equal to zero on the Segment Maturity Date.

Fund Descriptions

S&P 500® Price Return Index — Includes 500 leading companies in leading industries of the U.S. economy, capturing approximately 80% coverage of U.S. equities. The S&P 500® Price Return Index does not include dividends declared by any of the companies included in this index. Larger, more established companies may not be able to attain potentially higher growth rates of smaller companies, especially during extended periods of economic expansion. 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 Equitable Financial Life Insurance Company. Investment Edge® 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 Investment Edge®.

Russell 2000® Price Return Index — Measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Price Return Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Price Return Index does not include dividends declared by any of the companies included in this index. 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 Russell 2000® Index is a trademark of Russell Investments and has been licensed for use by Equitable Financial Life Insurance Company. 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.

MSCI EAFE Price Return Index — A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Price Return Index does not include dividends declared by any of the companies included in this index. 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 Equitable Financial and any related products.

NASDAQ 100® Price Return Index - 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.

MSCI Emerging Markets Price Return Index - 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.

Important Information

Investment Edge® is a variable deferred annuity contract and 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 Investment Edge®, you can invest to accumulate value on a tax-deferred basis with access to Variable Investment Options, as well as Segments comprising the Structured Investment Option. 

There are Variable Investment Options available with this product that are not discussed in this material. Any withdrawal charge applicable to your Variable Investment Options, Segment Type Holding Account or Structured Investment Option will be reflected in the cash value upon surrender and certain withdrawals. Information on Investment Edge® fees and charges can be found in the accompanying prospectus and fact card.

The Contract Fee is charged against each Segment’s Rate of Return.  The Contract Fee is part of the Segment Rate of Return calculation. For Standard Segments, the Contract Fee is subtracted from the Index Performance Rate (IPR) subject to the Performance Cap Rate and Segment Buffer. For Step Up Segments, if the IPR is greater than or equal to zero, the Contract Fee is subtracted from the PCR and if the IPR is negative, the Contract Fee is subtracted from the IPR subject to the Segment Buffer. Refer to the “Contract Fee” section of the Fact Card for the applicable contract series in the Resources tab for more details.  For any particular Segment, we may set a Performance Cap Rate applicable to allocations under new Contracts that is different than the Performance Cap Rate applicable to allocations under existing Contracts.

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 Equitable Financial 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 Investment Edge®. 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 for the Series B product. If you decide to withdraw prior to six years after making a contribution, you will incur a declining withdrawal charge, a percentage dependent on the year you withdraw. Withdrawals may also be subject to contractual withdrawal charges. The contractual withdrawal charge declines from 6% over a five-year period for Investment Edge® Series B. The declining withdrawal charge for contract years 1-2 is 6%, for contract year 3 is 5%, for contract year 4 is 4%, and for contract year 5 is 3% and thereafter there are no charges. 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 Equitable Financial Life Insurance Company. 

If you take a withdrawal from, or transfer out of, a Segment before the Segment Maturity Date, we calculate the Segment Interim Value (SIV) for that Segment. The SIV may be less than the Segment Investment and may be less than the Segment Maturity Value would have been on the Segment Maturity Date. Any such withdrawal or transfer will reduce the Segment Investment and the reduction may be greater than the dollar amount of the withdrawal or transfer.  

This content is not a complete description of all material provisions of the Investment Edge® annuity contract. In order to fully understand Investment Edge® and how it works, this material must be preceded or accompanied by a current Investment Edge® 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.

Equitable Financial Life Insurance Company 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. Certain features and benefits described herein may not be available in all jurisdictions and markets. In addition, some distributors may eliminate and/or limit the availability of certain features or options.

We offer other variable annuity contracts with different fees, charges and features. Not every contract is available through the same selling broker/dealer.

This material was prepared to support the promotion and marketing of Equitable Financial Life Insurance Company variable annuities. Equitable Financial Life Insurance Company, 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.

Investment Edge® is issued by Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY). Co-distributors: Equitable Distributors, LLC and Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN). Visit our website at equitable.com. You can contact us at (212) 554-1234 to find out the availability of other contracts.

Contract form #s: 2021IEBASE1 and 2021IEBASE2 and any state variations.

Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY); Equitable Financial Life Insurance Company of America, an AZ stock company with main administrative headquarters in Jersey City, NJ; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN).

© 2021 Equitable Holdings, Inc. All rights reserved. 

GE-3394799 (02/2021) (Exp. 02/2023)