Insurer Axa Equitable has opened Equi-Vest for investment, a new tax-deferred variable annuity offering a number of investment options including a structured investment option, a variable investment option and a guaranteed interest option.

"Adding the structured investment option (SIO) to our Equi-Vest product extends to the 403(b) retirement market the success that we have experienced with our Structured Capital Strategies individual variable annuity," an Axa Equitable spokeswoman told SRP. "Both offer savers a way to participate in index performance up to a cap, and with a measure of downside protection."

Axa Equitable's SIO allows investors to invest up to a specified cap in up to 12 segments simultaneously, each of which provides a performance tied to the S&P500 Price Return Index (excluding dividends) for a one-year period.

The product includes a 'segment buffer,' a partial protection feature through which Axa Equitable will absorb up to the first -10% of loss for a segment held to maturity. The SIO also features a 6% 'performance cap rate.'

Investors' initial investment is at risk if the downside risk protection barrier is breached. If the negative return is in excess of the 'segment buffer,' principal will be eroded one-to-one with the underlying.

The product, which has no surrender charges or commission fees, forms part of the 15 structured investment options for fee-based financial advisers, launched by Axa Equitable in 2011.

Other underlyings featured in this series include the Russell2000 Price Return Index and the MSCI Eafe Price Return Index, as well as a gold index and an oil index.

According to Axa Equitable, each option offers a fixed downside buffer of 10% for one-year contracts, 20% for three-year S&P and Russell options and 30% for five-year contracts.

The Axa Equitable spokeswoman said that the firm will be adding new index options within the Equi-Vest SIO later this year.

Axa Equitable's SIO segments will be open for subscription on 15 May, 17 June and 16 July. Each segment has a $1,000 minimum investment requirement.