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
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
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
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.
Who is eligible to invest in Offshore
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
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.
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 firstname.lastname@example.org
and we will respond quickly.