General

This product is only for non-U.S. and non-Bermudan citizens, but is available to U.S. N.R.A.s (see below).  These well-known fund managers are presently adding the Janus Funds (including the top performing Global Technology Fund) to their available investment products.  The product is ideal for the investor not wanting to set up a structure.  Rather, it offers a direct way to invest with the added privacy of a Bermuda Trust tied in with the Nationwide Offshore Annuity.

What is an Annuity?

An annuity is a contractual agreement with an insurance company.  In return for one or more purchase payments, an annuity contract provides both investment and insurance features.

An annuity has two phases - the accumulation phase and the payout phase.  During the accumulation phase, purchase payments are paid into the contract and assets are accumulated.  In the payout phase, payments from the annuity are paid to the person designated by the owner as the annuitant.  The owner may choose the start and duration of the payout phase which could be for the lifetime of the annuitant.

A fixed annuity owner is guaranteed a specific rate of return during the accumulation phase.  With a variable annuity, the owner can choose from a variety of investment options.  The value of the contract varies based on the performance of these options.  Many annuities offer a death benefit that is paid on the death of the annuitant.  Some guarantee that the beneficiary will receive at least as much as was invested while others guarantee the death benefit will be the purchase payments compounded with interest or the highest contract value on any previous anniversary.

What is an Offshore Annuity?

An offshore annuity is an annuity issued by an insurance company domiciled in an international financial services country such as Bermuda or Luxembourg.  Because offshore annuities are not registered in the United States, they cannot be sold or distributed within the U.S. or to (or for the benefit of) any U.S. person.

Who is eligible to invest in Offshore Annuities?

Most U.S.-non resident aliens (N.R.A.s) are eligible to invest in offshore annuities.  In general, NRAs are non-U.S. persons who spend no more than 180 days per year in the United States.  Consult your tax advisor or U.S. publication 516 if you have any question regarding your status or eligibility as an NRA.

Benefits of Offshore Investing.

Asset Protection - Offshore investments can provide some security against currency fluctuations, as well as some protection from economic, legal, and political circumstances that may threaten your accumulated wealth.

Access to Global Markets - offshore investing offers access to investment opportunities that may not be normally available in your home country.

Taxation - NRAs that invest in offshore annuities are not subject to U.S. income or estate taxes on distributions that apply to U.S. annuities.  There is no withholding or reporting of distributions.

Confidentiality - Companies domiciled in offshore jurisdictions do not, in general, have to report ownership information to the United States or other governments.

How to get more information

As an investor, you should check with your financial advisor as to the suitability of offshore products for your financial plan.  If in the United States, you may talk with your advisor in general about offshore annuity products and request materials be sent to you outside the U.S.  While you are outside the U.S., you may discuss specific investments and make transactions.

About Nationwide

Nationwide, based in Columbus, Ohio, has more than $98 billion in assets and one of the most extensive financial product lines in the industry.  It is consistently ranked among the top six providers of individual annuities and variable life products in the United States, being the third largest provider of individual annuities based on sales: ranking first in sales through independent financial planners and second in bank sales.

Nationwide's "Best of America" Global Variable Annuity is one of the products offered, which is a variety of mutual fund options, offering Aggressive Growth, Growth, Moderate Growth, Income and Money Market investment categories, thereby allowing you to invest in funds that suit your preferences and financial goals.  These options are from some of the most internationally recognized names in the industry, such as J P Morgan, Morgan Stanley Dean Witter, Nationwide Advisory Services Inc., Infinity Offshore Series Fund, Putnam Investments, Templeton and, as of mid-April 2000, Janus Funds.

These products are available through its subsidiary Nationwide Financial Services (Bermuda) Ltd., which began operations in February, 1998.  If you are interested in participating in this interesting programme, or require further information, please send an e-mail to nationwide@ceg.ai and we will respond quickly.