FFTW Funds, Inc.
Global and International Portfolios
Prospectus dated April 30, 1999
Supplement dated December 29, 1999
The following Fee Table information replaces the Fee Table information for the
Inflation-Indexed Portfolio contained on page 21 of the Prospectus.
Fee Table
Fees and Expenses of the Portfolios. This Table describes the fees and expenses
that you may pay if you buy and hold shares of the Portfolio.
Shareholder Transaction Expenses Inflation-Indexed (9)
(Fees Paid Directly By You)
Redemption Fees None
Exchange Fees None
Contingent Deferred Sales Load None
Sales Load on Reinvestment Dividends None
Sales Load on Purchases None
Annual Fund Operating Expenses (Fees Paid From
Fund Assets)
Management Fees 0.40%
Distribution Fees (12b-1) None
Shareholder Services Fees None
Other Expenses 0.15%
Total Annual Fund Operating Expenses 0.55%
(9) The Investment Adviser has voluntarily agreed to cap the Total Annual Fund
Operating Expenses at 0.35% (on an annualized basis) of the Portfolio's average
daily net assets. The Investment Adviser will pay all operating expenses that
exceed the voluntary waiver of fees. Effective December 29, 1999, and until
further notice, the Investment Adviser has voluntarily agreed to lower its
Management Fee to 0.20% from 0.40% (on an annualized basis) and cap Other
Expenses at 0.15% (on an annualized basis). The Investment Adviser will not
attempt to recover prior period waivers should expenses fall below the cap.
Under an Administration Agreement effective May 29, 1998 between the Fund and
Investors Capital, Investors Capital provides administrative services to the
Fund, for an incentive fee in the event the Portfolio operates below its expense
ratio. This fee is capped at 0.02% of the Portfolio's average daily net assets.
The following Expense Fee Table information replaces the Expenses Fee Table
information for the Inflation-Indexed Portfolio contained on page 22 of the
Prospectus.
Expenses Fee Table
As an investor, you pay certain fees and expenses in
connection with the Portfolios, as described in the tables
above. This table is intended to help you compare the cost
of investing in the Fund with the cost of investing in other
mutual funds by presenting the fees and expenses that you
may pay if you purchase and hold shares of the Fund. The
yearly numbers below are hypothetical expenses per $10,000
investment assuming a 5% annual return. Because this
example is hypothetical and for comparison purposes only, your
actual costs will be different.
- ------------------------------------- --------------------- --------------------
Portfolio Name 1 Year 3 Years
- ------------------------------------- --------------------- --------------------
- ------------------------------------- --------------------- --------------------
Inflation Indexed* $56 $176
- ------------------------------------- --------------------- --------------------
o Portfolio has not commenced investment operations, therefore only fees
for one and three years are represented.
The following information replaces the information concerning the
Inflation-Indexed Portfolio in the section entitled Portfolio's Payment of Fund
Expenses on page 6 of the Statement of Additional Information.
Portfolio's Payment of Fund Expenses
Fund expenses directly attributable to a Portfolio are charged to that
Portfolio; other expenses are allocated proportionately among all the Portfolios
in relation to their net assets. As compensation (subject to expense caps as
described under "Portfolio Operating Expenses" in the Prospectus) for the
services rendered by the Investment Adviser under the Advisory Agreements, each
Portfolio pays the Investment Adviser a monthly advisory fee (U.S. Short-Term,
Worldwide and Worldwide-Hedged Portfolios pay their fees quarterly) which is
calculated by applying the following annual percentage rates to such Portfolio's
average daily net assets for the month (quarter):
Inflation-Indexed 0.20%*
* Effective December 29, 1999, the Investment Adviser has voluntarily lowered
the advisory fee from 0.40%.
The following information replaces the biographical information for David N.
Fisher on page 23 of the Prospectus.
Simon Lue-Fong, Portfolio Manager, joined FFTW in 1994. After focusing on
European interest rates for four years, Simon is now the portfolio manager for
FFTW's Emerging Markets Portfolio and is one of three portfolio managers
responsible for foreign exchange positions in major economies.
Mr. Lue-Fong has a B.A. in Finance from Bournemouth
University where he specialized in portfolio management.
