Equitable Enhances its Investment Edge Tax-Deferred Variable Annuity
Investment Edge includes access to additional investment options that invest in underlying mutual funds that consider ESG factors, mitigate market volatility, or take advantage of professional asset allocation
August 9, 2022
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NEW YORK – July 20, 2022 – Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today announced enhancements to its Investment Edge® tax-deferred variable annuity with an expanded line-up of investment options to help meet financial professional and client interest in mitigating downside market risk, broader access to investment options that consider ESG factors, and asset allocation portfolios.
The latest version of Investment Edge® adds 20 structured investment option segments that provide partial downside protection from equity market losses and upside growth potential up to a cap, similar to Equitable’s Structured Capital Strategies® registered index-linked annuity. New segments include:
- 5-year -10% and -15% buffer segments
- -15% buffer option for 1-year segments
- NASDAQ 100 index investment option with a 1-year Step Up segment
- Dual Direction option for 1-year segment with a -10% buffer and 5-year segments with a -10% and -15% buffer
The latest version of Investment Edge adds an additional investment option that invests in an underlying mutual fund with a U.S.-focused thematic strategy that considers ESG criteria. With this addition, there are five investment options that invest in underlying mutual funds that consider ESG criteria in the Global Large Stock Blend, Large Blend, Large Growth, and Intermediate Core-Plus Bond Morningstar categories, and are designed meet increasing interest in sustainable investments.
The latest version of Investment Edge also includes asset allocation portfolios based on model portfolio strategies for moderate growth and growth risk profiles, allowing financial professionals to access to popular investment choices in a tax-deferred format.
“Given the current market environment punctuated by inflation, volatility, and rising interest rates, the ability to access funds from well-known investment managers with growth potential, combined with some downside protection, all in a tax-deferred format, can be an important addition to a diversified and resilient portfolio,” said Steve Scanlon, head of Individual Retirement.
The increased number of investment options will allow financial professionals to help their clients reallocate and diversify within the same product as market conditions change without a taxable event.
Investment Edge’s Dual Direction feature in its structured investment options allows clients to realize potential upside returns even in down markets. With Dual Direction, if the S&P 500 declines up to or equal to the amount of the buffer (-10% or -15% in Investment Edge) at the end of the investment time frame, clients earn a positive return equal to the percentage of the decline up to or equal to the buffer. If the S&P 500 declines more than the buffer, the client is protected from losses within the buffer. Positive returns are credited up to the cap.
Investment Edge is offered in both fee-based and commission-based versions to meet different financial professional and client preferences.
For interactive retirement education and detailed product information for Equitable’s individual retirement annuities, refer to the online Retirement Guide.
About Investment Edge variable annuities
Investment Edge is a tax-deferred variable annuity designed to provide clients with the ability to optimize how and when they start taking distributions for their account, thereby potentially reducing taxes in the early years of retirement. These benefits can also be extended to beneficiaries as well. The latest version of Investment Edge also allows clients to elect for their premiums to be returned to heirs upon their death through the optional Return of Premium Death Benefit (available at an additional cost), addressing a common hesitancy to invest in variable annuities. It can be used as an investment vehicle for inherited IRA contracts, potentially increasing flexibility in investment choices beyond what is often a limited number of options.
About Equitable
Equitable, a principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 2.8 million clients across the country. Please visit equitable.com for more information.
“Equitable” refers specifically to – and reference to the 1859 founding applies exclusively to – Equitable Financial Life Insurance Company. Overall, 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 and TN).
Variable annuities are sold by prospectus, which contains more complete information about the contract, including risks, charges, expenses, and investment objectives. You should review the prospectus carefully before purchasing a policy. Contact your financial professional for a copy of the current prospectus.
This press release is not a complete description of the Investment Edge® variable annuity, which should be considered a long-term investment for retirement purposes, designed to take advantage of smart diversification and tax-deferred growth potential during investors’ wealth-building years, followed by tax-efficient distributions when they need retirement income. This product is designed for investors who want tax-deferred growth potential as they seek wealth for retirement and other life goals. Investment activity in Investment Edge® does not generate current income taxes, allowing for greater wealth-building opportunities than taxable accounts can offer.
In essence, annuities are contractual agreements in which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. There are contract limitations and fees and charges associated with annuities, which include, but are not limited to, mortality and expense risk charges, sales and withdrawal charges, administrative fees, and charges for optional benefits. Amounts in a variable annuity’s investment options are subject to fluctuation in value and market risk, including loss of principal in both the Variable Investment Options and Structured Investment Options. Note that the underlying variable insurance product-dedicated mutual funds invested in by the investment options discussed are not available directly to retail investors. With regard to the partial downside protection offered within Investment Edge, there is a risk of a substantial loss of principal and previously credited interest because the contract holder agrees to absorb all losses to the extent they exceed the downside protection provided by the Structured Investment Option (SIO) at Segment maturity. While large cap stocks are perceived to be less risky than smaller cap companies, they still involve the risk value fluctuation, and you can lose money. Small- and mid-capitalization stocks are subject to a higher degree of market risk than large capitalization stocks of more established companies. Bond investments are subject to interest rate risk so that when interest rates rise, the prices of bonds can decrease and the investor can lose principal value. It is not possible to invest directly in an index.
Withdrawals are subject to ordinary income and, if taken prior to age 59½, a 10% federal income tax penalty may apply. All contract and rider guarantees are backed solely by the claims-paying obligations and ability of Equitable Financial Life Insurance Company. Annuities contain certain restrictions and limitations. For costs and complete details, contact a financial professional. The Investment Edge® variable annuity (February 2021 version) is a registered service mark of, and is issued by, Equitable Financial Life Insurance Company, 1290 Avenue of the Americas, NY, NY 10104. Co-distributors: Equitable Distributors, LLC and Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN). When distributed outside of New York State by Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) through Equitable Advisors Financial Professionals who do not have an office in New York State, Investment Edge®, beginning on or about November 14, 2022, will be issued by Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with main administrative headquarters in Jersey City, NJ.
