SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(A) of the Securities
Exchange Act of 1934
Filed by the Registrant X
Filed by a Party other than the Registrant
Check the appropriate box:
Preliminary Proxy Statement Confidential, for use of the
Commission Only (as permitted
by Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
Definitive additional materials
Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
FFTW FUNDS, INC.
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of filing fee (Check the appropriate box):
[X] No fee required.
Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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Fee paid previously with preliminary materials:
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Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the form or schedule and the date of its filing.
(1) Amount previously paid:
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(2) Form, Schedule or Registration Statement no.:
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(3) Filing Party:
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(4) Date Filed:
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<PAGE>
FFTW FUNDS, INC.
200 Park Avenue, New York, New York 10166
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
To Be Held on November 19, 1999
---------------------
To the Shareholders:
NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders (the
"Meeting") of the following Portfolios of FFTW Funds, Inc. (the "Fund"): Money
Market Portfolio, Mortgage LIBOR Portfolio, Limited Duration Portfolio,
Mortgage-Backed Portfolio, Asset-Backed Portfolio, High-Yield Portfolio,
Enhanced Equity Market Portfolio, U.S. Treasury Portfolio, U.S. Corporate
Portfolio, Broad Market Portfolio, International Portfolio, Global Tactical
Exposure Portfolio, International Opportunities Portfolio, International
Corporate Portfolio, Emerging Markets Portfolio, Global High Yield Portfolio,
Inflation-Indexed Portfolio, Inflation-Indexed Hedged Portfolio, U.S. Short-Term
Portfolio, Worldwide Portfolio, and Worldwide-Hedged Portfolio (each
individually a "Portfolio" and collectively the "Portfolios"), will be held at
the offices of Fischer Francis Trees & Watts, Inc., 200 Park Avenue, New York,
New York 10166, on Friday, November 19, 1999 at 10:00 a.m., Eastern Time. The
purpose of the Special Meeting is to consider and act upon the following
proposals, all of which are more fully described in the accompanying Proxy
Statement dated November 4, 1999.
1. To elect Directors of the Fund;
2. To reclassify, revise or eliminate certain fundamental
investment restrictions of the Portfolios;
3. To ratify the selection of KPMG LLP as the Fund's independent
auditors;
4. To transact such other business as may properly come before
the Special Meeting or any adjournments thereof.
<PAGE>
The Board of Directors has fixed the close of business on October 18,
1999, as the record date for the determination of the shareholders entitled to
notice of and to vote at the Special Meeting or any adjournments thereof. The
enclosed proxy is being solicited on behalf of the Directors.
By order of the Board of Directors,
William E. Vastardis,
Secretary
New York, New York
November 4, 1999
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YOUR VOTE IS IMPORTANT
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PLEASE INDICATE YOUR VOTING INSTRUCTIONS ON THE ENCLOSED PROXY CARD,
SIGN AND DATE IT, AND RETURN IT IN THE ENVELOPE PROVIDED, WHICH NEEDS NO POSTAGE
IF MAILED IN THE UNITED STATES. IN ORDER TO SAVE THE FUND ANY ADDITIONAL
EXPENSE OF FURTHER SOLICITATION, PLEASE MAIL YOUR PROXY PROMPTLY.
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<PAGE>
PROXY STATEMENT
FFTW FUNDS, INC.
200 Park Avenue, New York, New York 10166
SPECIAL MEETING OF SHAREHOLDERS
To Be Held on November 19, 1999
---------------------
INTRODUCTION
This Proxy Statement is furnished in connection with the solicitation
of proxies made by, and on behalf of, the Board of Directors of FFTW Funds,
Inc., a Maryland corporation (the "Fund"), to be used at a Special Meeting of
Shareholders of the Money Market Portfolio, Mortgage LIBOR Portfolio, Limited
Duration Portfolio, Mortgage-Backed Portfolio, Asset-Backed Portfolio,
High-Yield Portfolio, Enhanced Equity Market Portfolio, U.S. Treasury Portfolio,
U.S. Corporate Portfolio, Broad Market Portfolio, International Portfolio,
Global Tactical Exposure Portfolio, International Opportunities Portfolio,
International Corporate Portfolio, Emerging Markets Portfolio, Global High Yield
Portfolio, Inflation-Indexed Portfolio, Inflation-Indexed Hedged Portfolio, U.S.
Short-Term Portfolio, Worldwide Portfolio, and Worldwide-Hedged Portfolio, each
a separate investment Portfolio of the Fund (each individually a "Portfolio" and
collectively the "Portfolios"), to be held at the offices of the Fund, 200 Park
Avenue, New York, New York 10166 on Friday, November 19, 1999 at 10:00 a.m.
Eastern Time, and at any adjournments thereof (the "Meeting"). The cost of the
solicitation (including printing and mailing this Proxy Statement, Notice of
Meeting and Proxy, as well as any necessary supplementary solicitation) will be
borne by the Portfolios in proportion to their average net assets. The Notice of
Meeting, Proxy Statement and Proxy are being mailed to shareholders on or about
November 5, 1999.
The presence in person or by proxy of the holders of record of a
majority of the shares of a Portfolio of the Fund entitled to vote thereat shall
constitute a quorum at the Meeting for that Portfolio. If, however, such quorum
shall not be present or represented at the Meeting or if fewer shares are
present in person or by proxy than the minimum required to take action with
respect to any proposal presented at the Meeting, the holders of a majority of
the shares of the Portfolio present in person or by proxy shall have the power
to adjourn the Meeting with respect to that Portfolio, from time to time,
without notice other than announcement at the Meeting, until the requisite
amount of shares entitled to vote at the Meeting shall be present. At any such
adjourned Meeting, if the relevant quorum is subsequently constituted, any
business may be transacted which might have been transacted at the Meeting as
originally called. For purposes of determining the presence of a quorum for
transacting business at the Meeting, abstentions and broker "non-votes" (that
is, proxies from brokers or nominees indicating that such persons have not
received instructions from the beneficial owner or other persons entitled to
vote shares on a particular matter with respect to which the brokers or nominees
do not have discretionary power) will be treated as shares that are present but
which have not been voted. For this reason, abstentions and broker non-votes
will have the effect of a "no" vote for purposes of obtaining the requisite
approval for Proposals One and Two, for which the required vote is a percentage
of the shares either outstanding or present at the Meeting, and will have no
effect on Proposal Three, for which the required vote is a majority of the votes
cast.
The Board of Directors has fixed the close of business on October 18,
1999 as the record date for the determination of shareholders entitled to notice
of and to vote at the Meeting and at any adjournments thereof. Each share is
entitled to one vote, and each fraction of a share is entitled to a
proportionate fractional vote. The numbers of outstanding voting shares of each
Portfolio as of October 18, 1999 are indicated in the following table:
<TABLE>
<S> <C> <C>
------------------------------------------------- -----------------------
Outstanding Voting
Portfolios Shares
------------------------------------------------- -----------------------
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Money Market Portfolio 21,527,645
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Mortgage LIBOR Portfolio 7,408,843
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Limited Duration Portfolio 12,233,180
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Mortgage-Backed Portfolio 54,125,996
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Asset-Backed Portfolio 1
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High-Yield Portfolio 1
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Enhanced Equity Market Portfolio 1
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U.S. Treasury Portfolio 1
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U.S. Corporate Portfolio 1
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Broad Market Portfolio 1
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International Portfolio 11,787,262
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Global Tactical Exposure Portfolio 39,600,823
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International Opportunities Portfolio 2,769,543
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International Corporate Portfolio 1
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Emerging Markets Portfolio 25,771,684
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Global High Yield Portfolio 1
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Inflation-Indexed Portfolio 1
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Inflation-Indexed Hedged Portfolio 1
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U.S. Short-Term Portfolio 57,426,557
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Worldwide Portfolio 7,439,167
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------------------------------------------------- -----------------------
Worldwide-Hedged Portfolio 18,164,138
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</TABLE>
Additional information regarding ownership of the Portfolios' shares by
each person who beneficially owns more than five percent of the voting
securities of a Portfolio is included as Exhibit A.
All properly executed proxies received prior to the Meeting will be
voted at the Meeting in accordance with the instructions marked thereon or as
otherwise provided therein. Accordingly, unless instructions to the contrary are
marked, proxies will be voted FOR the matters specified on the proxy card. Any
shareholder may revoke his or her proxy at any time prior to exercise thereof by
giving written notice to the Secretary of the Fund at FFTW Funds, Inc., c/o
Investors Capital Services, Inc., 600 Fifth Avenue, 26th Floor, New York, New
York 10020, or by signing another proxy of a later date or by personally casting
his or her vote at the Meeting.
The most recent annual and semi-annual reports of the Portfolios,
including financial statements, have been previously mailed to shareholders. If
you have not received these reports or would like to receive additional copies
free of charge, please either write to FFTW Funds, Inc., c/o Investors Capital
Services, Inc., 600 Fifth Avenue, 26th Floor, New York, New York 10020 or call
(800) 762-4848 and they will be sent promptly by first-class mail.
To obtain the necessary representation at the Meeting, supplementary
solicitations may be made by mail, telephone, telegraph, facsimile or personal
contact by (i) Directors and officers of the Fund, (ii) Fischer Francis Trees &
Watts, Inc. (the "Investment Adviser"), and/or (iii) Investors Capital Services,
Inc. (the "Administrator").
Votes Required
The election of Directors, as set forth in Proposal One, will require a
vote of the holders of a majority of the total votes present at the Meeting. The
reclassification, revision or elimination of certain fundamental investment
restrictions of the Portfolios, as set forth in Proposal Two, will require a
majority vote of the outstanding voting securities of each Portfolio voting on
elimination or revision of a fundamental investment restriction. For purposes of
Proposal Two, a majority of the outstanding voting securities of a Portfolio
means the lesser of (1) 67% of the shares of that Portfolio present at a meeting
if the holders of more than 50% of the outstanding shares of that Portfolio are
present in person or by proxy, or (2) more than 50% of the outstanding shares of
that Portfolio. Ratification of the selection of the independent auditors, set
forth in Proposal Three, will require a vote of the holders of a majority of the
total votes cast at the Meeting.
<PAGE>
TABLE OF PROPOSALS
<TABLE>
<S> <C> <C>
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposals Shareholders Entitled to Vote
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 1 ELECTION OF DIRECTORS All Portfolios
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposals 2A-2H RECLASSIFICATION, REVISION OR ELIMINATION OF All or Certain Portfolios -- See Below
CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS
OF THE PORTFOLIOS
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2A BORROWING MONEY All Portfolios
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2B ISSUING SENIOR SECURITIES All Portfolios
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2C PURCHASING SECURITIES ON MARGIN All Portfolios
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2D MAKING SHORT SALES OF SECURITIES Money Market Portfolio, Limited Duration
Portfolio, U.S. Treasury Portfolio, Broad
Market Portfolio, International Portfolio,
Global Tactical Exposure Portfolio,
Emerging Markets Portfolio, U.S. Short-Term
Portfolio, Worldwide Portfolio, and
Worldwide-Hedged Portfolio
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2E INVESTING FOR CONTROL All Portfolios
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2F INVESTING IN ISSUERS IN WHICH FUND All Portfolios
MANAGEMENT INVESTS
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- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2G INVESTING IN OTHER INVESTMENT COMPANIES All Portfolios
- ------------------------- ---------------------------------------------- ----------------------------------------------
- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 2H INVESTING IN UNSEASONED ISSUERS OR All Portfolios
RESTRICTED SECURITIES
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- ------------------------- ---------------------------------------------- ----------------------------------------------
Proposal 3 RATIFICATION OF SELECTION OF INDEPENDENT All Portfolios
AUDITORS
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</TABLE>
<PAGE>
THE PROPOSALS
PROPOSAL 1 : ELECTION OF DIRECTORS
ALL PORTFOLIOS
At the Meeting, three Directors will be elected, each to serve until he
or she resigns, dies or is removed and until his or her successor is duly
elected and qualified. The nominees are Stephen P. Casper, Saul H. Hymans, and
Andrea Redmond who, if elected, will each serve for an indefinite term. It is
the intention of the persons named in the enclosed proxy to nominate and vote in
favor of the nominees.
Each of the nominees has consented to serve as a Director. Stephen P.
Casper is currently a Director of the Fund. Saul H. Hymans has not been a
Director of the Fund, although he has been a non-voting advisory director of the
Fund since February 19, 1999. Andrea Redmond has not been a Director of the
Fund. The nominees are not related to one another. The Board of Directors knows
of no reason why any of the nominees would be unable to serve, but in the event
of such unavailability, the proxies received will be voted for such substitute
nominees as the Board of Directors may recommend.
Certain information concerning the nominees is set forth as follows:
<TABLE>
<S> <C>
- ------------------------------------------------------------ ---------------------------------------------------------
Principal Occupations During the Past Five Years and
Nominees (Age) * Other Directorships/Trusteeships
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Stephen P. Casper (49) Shareholder and Managing Director of the Investment
Adviser (1991-present); Chief Financial Officer of the
Investment Adviser (1990-present); Treasurer of
Rockefeller & Company (1984-1990).
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Saul H. Hymans (61) Professor of Economics at the University of Michigan
(1964-present).
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Andrea Redmond (43) Managing Director, Russell Reynolds Associates, Inc.
(1989-present)
- ------------------------------------------------------------ ---------------------------------------------------------
</TABLE>
* As of September 30, 1999, the nominees beneficially owned less than 1% of the
shares of common stock of each of the Portfolios.
<PAGE>
The following table provides information concerning each of the current
Directors and officers of the Fund:
<TABLE>
<S> <C>
- ------------------------------------------------------------ ---------------------------------------------------------
Positions with the Fund, Principal Occupations During
the Past Five Years and Other
Names (Age) * Directorships/Trusteeships
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
John C Head III (50) Director of the Fund (1989-present); Managing Member of
Head & Company L.L.C. (1987-present); Chairman of the
Board of ESG Re Limited; Director of PartnerRe Ltd.,
Kiln Capital plc and other private companies.
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Lawrence B. Krause (69) Director of the Fund (1991-present); Professor of
International Relations and Pacific Studies at the
University of California at San Diego (1987-present);
Member of the Editorial Advisory Board of the Political
Science Quarterly; Member of the Council on Foreign
Relations; Vice-Chairman of the U.S. National Committee
for Pacific Economic Cooperation; Senior Fellow of the
Brookings Institution (1969-1986).
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Onder John Olcay (62)** Chairman of the Board of Directors of the Fund
(1989-present); Shareholder and Managing Director of
the Investment Adviser (1992-present).
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Stephen P. Casper (49)** See Nominee table.
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
Carla E. Dearing (36) Assistant Treasurer of the Fund (1993-present);
President and Director of Investors Capital Services
(1992-present); Vice President of Morgan Stanley & Co.
(1984-1986, 1988-1992).
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
William E. Vastardis (43) Secretary and Treasurer of the Fund (1998-present);
Assistant Secretary of the Fund (1992-1997) Managing
Director and Head of Fund Administration for Investors
Capital Services (1992-present); Vice President and
Head of Fund Administration for the Vanguard Group,
Inc.'s private label administration unit (1985-1992)
and fund accounting operations (1979-1985).
- ------------------------------------------------------------ ---------------------------------------------------------
</TABLE>
* As of September 30, 1999, the Directors and officers of the Fund as a group
beneficially owned less than 1% of the shares of common stock of each of the
Portfolios.
** Mr. Olcay and Mr. Casper are "interested
persons", as defined in the Investment Company Act
of 1940, due to their affiliation with the
Investment Adviser.
The Fund's Board, which is currently composed of two interested and two
non-interested Directors, met four times during the fiscal year ended December
31, 1998. It is expected that the Directors will meet at least four times a year
at regularly scheduled meetings. The Board has an Audit Committee, which met
twice during the fiscal year ended December 31, 1998. Audit Committee members
include Directors John C Head III and Lawrence B. Krause. The Board does not
have nominating or compensation committees. Each Board member attended all of
the Board and Audit Committee meetings (if such Director served on the Audit
Committee) during the fiscal year ended December 31, 1998. The Audit Committee
reviews reports prepared by the Fund's independent auditors, recommends approval
of audit services and fees, evaluates the independence of the independent
auditors, and recommends whether to retain the independent auditors.
Compensation of Directors
No employee of the Investment Adviser or the Administrator receives
compensation from the Fund for acting as an officer or director of the Fund. For
the fiscal year ended December 31, 1998, the Fund paid each Director who was not
a director, officer or employee of the Investment Adviser or the Administrator
or any of their affiliates, a fee of $1,000 for each meeting attended, and each
of the Directors received an annual retainer of $20,000 which was paid in
quarterly installments. At the February 19, 1999 Board of Directors Meeting, the
Board approved an increase in compensation of each of the Directors to a flat
annual fee of $35,000 with no per meeting attendance fee. In addition, in the
event that any Director does not serve as a member of the Board for an entire
year, such Director's annual fee payment shall be pro-rated.
For the fiscal year ended December 31, 1998, the Directors received the
following compensation from the Fund:
<TABLE>
<S> <C> <C> <C> <C>
- ----------------------------- --------------------- --------------------- --------------------- ---------------------
Pension or
Retirement Benefits Total Compensation
Accrued As Part of Estimated Annual From Registrant
Aggregate Fund Expenses Benefits Upon Paid to Directors*
Compensation From Retirement
Name of Director Registrant
- ----------------------------- --------------------- --------------------- --------------------- ---------------------
- ----------------------------- --------------------- --------------------- --------------------- ---------------------
John C Head III $27,000 $0 $0 $27,000
- ----------------------------- --------------------- --------------------- --------------------- ---------------------
- ----------------------------- --------------------- --------------------- --------------------- ---------------------
Lawrence B. Krause $27,000 $0 $0 $27,000
- ----------------------------- --------------------- --------------------- --------------------- ---------------------
</TABLE>
* FFTW Funds, Inc. is a registered investment
company composed of 21 portfolios, of which 11 are
active.
THE BOARD OF DIRECTORS OF THE FUND
UNANIMOUSLY RECOMMENDS APPROVAL OF PROPOSAL 1.
PROPOSALS 2A THROUGH 2H: ELIMINATION OR CHANGE OF
CERTAIN FUNDAMENTAL INVESTMENT RESTRICTIONS OF THE
PORTFOLIOS
ALL PORTFOLIOS
(Certain changes are proposed for all Portfolios,
but some changes apply only to certain Portfolios as
indicated below)
Pursuant to the Investment Company Act of 1940 (the "1940 Act"), each
of the Portfolios has historically adopted certain fundamental investment
restrictions ("fundamental restrictions"), which are set forth in the Fund's
prospectus or statement of additional information, and which may be changed only
with shareholder approval.
The purpose of these proposals is to remove the requirement of
shareholder approval to change those restrictions that are not required under
the 1940 Act to be fundamental restrictions and to make more uniform the
restrictions that are required to be fundamental. Some of the Portfolios'
current fundamental restrictions that are not required to be such under the 1940
Act are unnecessary because the provisions of the 1940 Act and the disclosure
requirements of the federal securities laws otherwise provide adequate
safeguards for a Portfolio and its shareholders.
Accordingly, the Board has approved revisions to the Portfolios'
fundamental restrictions in order to simplify, modernize and make more uniform
those restrictions that are required to be fundamental, and to reclassify those
restrictions that are not legally required to be fundamental as non-fundamental
restrictions. Non-fundamental restrictions require Board approval to be changed,
but not shareholder approval. By reducing to a minimum those policies that can
be changed only by shareholder vote, the Board believes that the Portfolios
would be able to minimize the costs and delay associated with holding future
shareholder meetings to revise fundamental policies that become outdated or
inappropriate. The proposed changes in investment restrictions reflect the
current industry custom and practice of placing authority over those investment
restrictions not required by the 1940 Act with the Board rather than with the
shareholders. Although the proposed changes in fundamental restrictions will
allow the Portfolios greater investment flexibility to respond to future
investment opportunities, the Board does not anticipate that the changes,
individually or in the aggregate, will result at this time in a material change
in the level of investment risk associated with an investment in any Portfolio.
If the shareholders of the respective Portfolios approve the proposed
changes at the Meeting, the Fund's prospectus and statement of additional
information will be revised to reflect those changes.
The text and a summary description of each proposed change to the
Portfolios' fundamental restrictions are set forth below.
<PAGE>
Proposal 2A: Borrowing Money
Portfolios to which this change applies:
All Portfolios.
Under the Portfolios' fundamental restriction stated below, the
Portfolios are restricted from borrowing money for the purpose of leveraging the
Portfolio's investments. The proposed restriction would permit each Portfolio to
engage in borrowing in a manner and to the full extent permitted under the 1940
Act. The Board has no current intention of authorizing this practice.
The 1940 Act requires borrowings to have 300% asset coverage, which
means that a Portfolio would be permitted to borrow up to an amount equal to 50%
of its net assets (i.e., with net assets equal to $10 million, a Portfolio could
borrow up to $5 million for $15 million in gross assets, which results in 300%
gross asset coverage). Additionally, under the proposed restriction, each
Portfolio would not be limited to borrowing for temporary or emergency purposes,
could borrow for leverage, and could purchase securities for investment while
borrowings are outstanding. If the Board authorized a Portfolio to borrow for
leverage, such borrowings may exaggerate the effect of any increase or decrease
in the value of Portfolio securities or the net asset value of a Portfolio.
Transaction costs associated with such borrowings, including interest, may also
exceed the income from the securities purchased with the borrowed money. In
addition, under adverse market conditions, a Portfolio might have to sell
Portfolio securities to meet interest or principal payments at a time when
investment considerations would not favor such sales.
Current Text
Portfolios may not borrow money, except by engaging in reverse
repurchase agreements (reverse repurchase agreements and dollar roll
transactions that are covered pursuant to SEC regulations or staff
positions, will not be considered borrowing) or dollar roll
transactions or from a bank as a temporary measure for the reasons
enumerated in "INVESTMENT RESTRICTIONS" provided that a Portfolio will
not borrow, more than an amount equal to one-third of the value of its
assets, nor will it borrow for leveraging purposes (i.e., a Portfolio
will not purchase securities while temporary bank borrowings in excess
of 5% of its total assets are outstanding).
Proposed Text
Portfolios may not borrow money, except in conformity with the limits
set forth in the 1940 Act; notwithstanding the foregoing, short-term
credits necessary for settlement of securities of transactions are not
considered borrowings.
Proposal 2B: Issuing Senior Securities
Portfolios to which this change applies:
All Portfolios.
Under the 1940 Act and the Portfolios' fundamental restriction stated
below, the Portfolios are restricted from issuing senior securities, with
certain exceptions. A "senior security" is an obligation of a Portfolio with
respect to its earnings or assets that takes precedence over the claims of the
Portfolio's shareholders with respect to the same earnings or assets. The 1940
Act generally prohibits a Portfolio from issuing senior securities, in order to
limit the use of leverage. In general, a Portfolio uses leverage when it enters
into securities transactions without being required to make payment until a
later time. SEC staff interpretations regarding the 1940 Act allow a Portfolio
to engage in a number of types of transactions which might otherwise be
considered creating "senior securities" or "leverage," so long as the Portfolio
meets certain collateral requirements designed to protect shareholders. In order
to ensure that the Portfolios' restrictions with respect to issuing senior
securities are consistent with the provisions of the 1940 Act, it is proposed
that the restriction on issuing senior securities be revised to state that the
Portfolios may not issue senior securities, except to the extent permitted under
the 1940 Act.
Current Text
Portfolios may not issue senior securities (other than as specified in
clause a [borrowing money]).
Proposed Text
Portfolios may not issue senior securities, except to the extent
permitted under the 1940 Act.
Proposal 2C: Purchasing Securities on Margin
Portfolios to which this change applies:
All Portfolios.
Each Portfolio is currently prohibited from purchasing securities on
margin, except to obtain short-term credits necessary for clearance of
transactions, and in the case of margin deposits, in connection with financial
futures and options transactions. The Portfolios are not required to make this a
fundamental restriction under the 1940 Act. Therefore, it is proposed that this
fundamental restriction be reclassified as a non-fundamental restriction.
Although such a reclassification would give the Board the power to subsequently
modify the restriction, the Board has no current intention of making such a
modification. Should the Board decide to make such a modification, any such
modification will be included in the next Fund registration statement filed with
the Securities and Exchange Commission and will be reflected in the next Fund
prospectus or statement of additional information, as appropriate.
If the shareholders approve reclassification of this restriction, each
Portfolio's potential use of margin transactions beyond transactions in futures
and options and for the clearance of purchases and sales of securities,
including the use of margin in ordinary securities transactions, would be
generally limited under the 1940 Act because they create senior securities. (See
Proposal 2B.) Margin transactions involve the purchase of securities with money
borrowed from a broker, with cash or eligible securities being used as
collateral against the loan. Such transactions present risks similar to those
associated with borrowing for leverage, including increased Portfolio
volatility, increased risk of loss in a declining market, and the risk that the
costs of borrowing will exceed the returns on the securities purchased with the
borrowed money. Accordingly, each Portfolio's ability to engage in margin
transactions is also limited by its borrowing restrictions, which permit a
Portfolio to borrow money only as permitted by applicable law. (See Proposal
2A.)
Current Text
Portfolios may not purchase securities on margin (although deposits
referred to as "margin" will be made in connection with investments in
futures contracts, as explained above, and a Portfolio may obtain such
short-term credits as may be necessary for the clearance of purchases
and sales of securities).
(Text to remain unchanged following the proposed reclassification of
the investment restriction.)
Proposal 2D: Making Short Sales of Securities
Portfolios to which this change applies:
Money Market Portfolio, Limited Duration Portfolio,
U.S. Treasury Portfolio, Broad Market Portfolio,
International Portfolio, Global Tactical Exposure
Portfolio, Emerging Markets Portfolio, U.S.
Short-Term Portfolio, Worldwide Portfolio, and
Worldwide-Hedged Portfolio.
Each Portfolio is currently prohibited from making short sales of
securities, except that this restriction does not limit transactions in options,
futures, options on futures or forward currency contracts. Short sales of
securities involve the sale of a security or futures contract not owned by the
seller, generally for the purpose of profiting from an expected decline in the
price. If the price rises, the seller may have to cover its short position at a
higher price than the short sale price, resulting in a loss. The Portfolios are
not required to make this a fundamental restriction under the 1940 Act.
Therefore, it is proposed that this fundamental restriction be eliminated. If
the shareholders approve elimination of this restriction, the Portfolios intend
to engage in such transactions, but would be generally limited in doing so by
the specific investment objectives of individual Portfolios and by requirements
under the 1940 Act, which require, among other things, that a segregated account
of liquid assets be maintained to "cover" the portfolio's exposure under short
sales.
Current text
Portfolios may not make short sales of securities (does not include
options, futures, options on futures or forward currency contracts).
Proposal 2E: Investing for Control
Portfolios to which this change applies:
All Portfolios.
Under the Portfolios' fundamental restriction stated below, the
Portfolios are prohibited from investing in companies for the purpose of
exercising control or management. The Portfolios are not required to make this a
fundamental restriction under the 1940 Act. It was originally adopted in
response to state law restrictions or interpretations that no longer apply to
the Portfolios. Therefore, it is proposed that this fundamental restriction be
reclassified as a non-fundamental restriction. Although the Portfolios do not
now, or in the immediate future, intend to invest in companies for the purpose
of exercising control or management, such a reclassification would permit the
Board to modify the restriction so as to permit such investment. Should the
Board decide to do so, this modification will be included in the next Fund
registration statement filed with the Securities and Exchange Commission and
will be reflected in the next Fund prospectus or statement of additional
information, as appropriate. Such a modification may result in the increased
volatility associated with company or industry specific investment strategies,
increased exposure to liquidity risks, and/or increased exposure to state
corporate governance regulatory schemes.
Current Text
Portfolios may not invest in companies
for the purpose of exercising control or
management.
(Text to remain unchanged following the proposed reclassification of
the investment restriction.)
Proposal 2F: Investing in Issuers in which Fund
Management Invests
Portfolios to which this change applies:
All Portfolios.
The Portfolios' fundamental restriction stated below was originally
adopted in response to state law restrictions or interpretations that no longer
apply to the Portfolios. Therefore, it is proposed that this fundamental
restriction be reclassified as a non-fundamental restriction. Although such a
reclassification would give the Board the power to subsequently modify the
restriction, the Board has no current intention of making such a modification.
Should the Board decide to make such a modification, any such modification will
be included in the next Fund registration statement filed with the Securities
and Exchange Commission and will be reflected in the next Fund prospectus or
statement of additional information, as appropriate. In addition, transactions
between each Portfolio and an affiliated person of the Portfolio, which present
potential conflict of interest issues, are regulated under the 1940 Act.
Current Text
Each Portfolio is prohibited from purchasing or retaining securities of
any issuer if the officers, directors or trustees of the Fund, or its
advisors, or managers own beneficially more than one half of one
percent of the securities of an issuer, or together own beneficially
more than five percent of the securities of that issuer.
(Text to remain unchanged following the proposed reclassification of
the investment restriction.)
Proposal 2G: Investing in Other Investment
Companies
Portfolios to which this change applies:
All Portfolios.
The fundamental restriction stated below prohibits the Portfolios from
investing in other investment companies, with certain exceptions. The 1940 Act
limits the ability of an investment company to purchase the shares of another
investment company, but does not require the investment company to make this a
fundamental restriction. Therefore, it is proposed that this fundamental
restriction be eliminated. If the shareholders approve elimination of this
restriction, the Portfolios intend to engage in such transactions, but would be
generally limited in doing so by requirements under the 1940 Act. Those
requirements are intended to ensure that mutual fund shareholders do not pay
significant duplicate expenses of the other investment company, including
investment advisory, administration, and custodian fees.
Current text
Each Portfolio is prohibited from the investment in securities of other
investment companies, except by purchase in the open market where no
commission or profit to a sponsor or dealer results from the purchase
other than the customary broker's commission, or except when the
purchase is part of a plan of merger, consolidation, reorganization or
acquisition.
Proposal 2H: Investing in Unseasoned Issuers or
Restricted Securities
Portfolios to which this change applies:
All Portfolios.
Under the Portfolios' fundamental restriction stated below, the
Portfolios are prohibited from investing more than 15% of total assets in
issuers with short operational histories or securities of issuers which are
restricted as to disposition. Unseasoned issuers generally have been in
operation for less than three years, therefore, securities issued by them
generally are subject to greater volatility and may be less liquid than
securities of more established companies. Restricted securities are subject to
legal or contractual restrictions on resale, and may be less liquid than
securities that are not subject to such restrictions. This fundamental
restriction is not required under the 1940 Act. It was originally adopted in
response to state law restrictions or interpretations that no longer apply to
the Portfolios. In addition, under the 1940 Act, each Portfolio is currently
prohibited from investing more than 15% of its net assets in illiquid
securities, which includes securities of unseasoned issuers or restricted
securities for which there is no liquid market. Therefore, it is proposed that
this fundamental restriction be reclassified as a non-fundamental restriction.
Although such a reclassification would give the Board the power to subsequently
modify the restriction, the Board has no current intention of making such a
modification. Should the Board decide to make such a modification, any such
modification will be included in the next Fund registration statement filed with
the Securities and Exchange Commission and will be reflected in the next Fund
prospectus or statement of additional information, as appropriate.
Current text
Each Portfolio is prohibited from the investment of more than fifteen
percent (15%) of [the Portfolio's] total assets in the securities of
issuers which together with any predecessors have a record of less than
three years continuous operation or securities of issuers which are
restricted as to disposition.
(Text to remain unchanged following the proposed reclassification of
the investment restriction.)
THE BOARD OF DIRECTORS OF THE FUND
UNANIMOUSLY RECOMMENDS APPROVAL OF PROPOSALS 2A
THROUGH 2H.
PROPOSAL 3: RATIFICATION OF THE SELECTION OF
INDEPENDENT AUDITORS
At a meeting of the Board held on August 13, 1999, the Board, including
a majority of the directors who are not "interested persons" as defined in the
1940 Act, as well as a majority of the directors who are members of the Audit
Committee, selected the accounting firm of KPMG LLP to act as the independent
auditors to the Fund for the fiscal year ending December 31, 1999.
Ernst & Young LLP previously served as the independent auditors for the
Fund with respect to its financial statements for the fiscal year ending
December 31, 1998 and prior years. The Board considered the services of Ernst &
Young LLP to have been satisfactory. However, based upon a recommendation from
the Audit Committee of the Board, the Board deemed it appropriate at the meeting
on August 13, 1999 to select KPMG LLP as the independent auditors. The Board
selected KPMG LLP after considering that firm's experience as independent
auditors to investment companies.
The former independent auditors resigned as independent auditors to the
Fund. The independent auditor's report on the Fund's financial statements for
either of the past two years has not contained an adverse opinion or disclaimer
of opinion, and was not qualified or modified as to uncertainty, audit scope, or
accounting principles. During the Fund's two most recent fiscal years, there
were no disagreements with the former independent auditors on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
that firm, would have caused it to make reference to the subject matter of the
disagreement(s) in connection with its report.
KPMG LLP are independent auditors and have no direct financial or
material indirect financial interest in the Fund. Representatives of KPMG LLP
are not expected to be at the Meeting but have been given the opportunity to
make a statement if they wish, and will be available should any matter arise
requiring their presence.
THE BOARD OF DIRECTORS OF THE FUND
UNANIMOUSLY RECOMMENDS APPROVAL OF PROPOSAL 3.
Other Matters
The Fund does not know of any matters to be presented at the Meeting
other than those mentioned in this Proxy Statement. If any of the persons listed
above is unavailable for election as Director, an event not now anticipated, or
if any other matters properly come before the Meeting, the shares represented by
proxies will be voted with respect thereto in accordance with the best judgment
of the person or persons voting the proxies.
The Fund does not usually hold annual meetings of its shareholders.
Shareholder proposals to be included in the proxy statement for any subsequent
meeting must be received at the Fund's offices, 200 Park Avenue, New York, New
York 10166, within a reasonable amount of time prior to the mailing of proxy
materials for a meeting of shareholders. The submission of a proposal by a
shareholder for inclusion in the proxy statement does not guarantee that it will
be included. Shareholder proposals are subject to certain regulations under the
federal securities laws. The Directors shall call a special meeting of the Fund
upon written request of shareholders owning at least 10% of the Fund's
outstanding shares.
If the accompanying form of proxy is executed properly and returned,
shares represented by it will be voted at the Meeting in accordance with the
instructions on the proxy. However, if no instructions are specified, shares
will be voted for the election of the Directors and for the other proposals.
INFORMATION ABOUT THE FUND
The Independent Auditors. KPMG LLP, 345 Park Avenue, New York, New York, 10154,
are the independent auditors to the Fund. Ernst & Young LLP, 787 Seventh Avenue,
New York, New York 10019, served as the independent auditors to the Fund with
respect to its financial statements for the fiscal year ending December 31, 1998
and prior years.
The Investment Adviser. The Investment Adviser of the Fund is Fischer Francis
Trees & Watts, Inc., located at 200 Park Avenue, New York, New York 10166.
Pursuant to an investment advisory agreement, the Investment Adviser manages the
investment and reinvestment of the assets of the Portfolios.
The Investment Sub-Adviser. Fischer Francis Trees & Watts is the Investment
Sub-Adviser to the International Portfolio, Global Tactical Exposure Portfolio,
International Opportunities Portfolio, International Corporate Portfolio,
Emerging Markets Portfolio, Global High Yield Portfolio, Inflation-Indexed
Portfolio, Inflation-Indexed Hedged Portfolio, Worldwide Portfolio, and
Worldwide-Hedged Portfolio of the Fund. Their offices are located at 3 Royal
Court, The Royal Exchange, London EC3V 3RA, England. Pursuant to an investment
sub-advisory agreement, the Investment Sub-Adviser coordinates with the
Investment Adviser in managing the investment and reinvestment of the foreign
assets of the Portfolios. The Investment Sub-Adviser is an affiliate of the
Investment Adviser.
The Administrator. The administrator of the Fund is
Investors Capital Services, Inc. with offices at 600
Fifth Avenue, New York, New York 10020. Pursuant to
an administration agreement, Investors Capital
assists in managing and supervising all aspects of
the general day-to-day business activities and
operations of the Fund other than the investment
advisory activities, including: custodial, transfer
agent, dividend disbursing, accounting, auditing,
compliance and related services.
The Principal Underwriter. The principal underwriter of the Fund is AMT Capital
Securities, LLC with offices at 600 Fifth Avenue, New York, New York 10020.
Pursuant to a distribution agreement, AMT Capital distributes shares of the
Fund.
By order of the Board of Directors,
William E. Vastardis
Secretary
New York, New York
November 4, 1999
<PAGE>
TABLE OF EXHIBITS
<TABLE>
<S> <C>
- ------------------------------------------------------------ ---------------------------------------------------------
Exhibit Description
- ------------------------------------------------------------ ---------------------------------------------------------
- ------------------------------------------------------------ ---------------------------------------------------------
A Share Ownership of the Portfolios
- ------------------------------------------------------------ ---------------------------------------------------------
</TABLE>
<PAGE>
EXHIBIT A
Share Ownership of the Portfolios
The following table sets forth the information concerning beneficial
ownership, as of September 30, 1999, of the Portfolios' shares by each person
who beneficially owns more than five percent of the voting securities of a
Portfolio:
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
Number of Shares
Beneficially Percentage of
Owned Outstanding
Name and Address of Shareholder Name of Portfolio SharesOwned
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
GENERAL MOTORS EMPLOYEES GLOBAL GROUP U.S. SHORT-TERM 16,920,231.025 31.35%
PENSION TRUST PORTFOLIO
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
PHILIP MORRIS COMPANIES INC U.S. SHORT-TERM 12,147,727.537 22.51%
ATTN MARK WERNER PORTFOLIO
(MASTER TRUST)
120 PARK AVENUE
NEW YORK, NY 10017-5523
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
BANK OF AMERICA FUND U.S. SHORT-TERM 5,547,786.093 10.28%
C/O FFTW PORTFOLIO
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
Number of Shares
Beneficially Percentage of
Owned Outstanding
Name and Address of Shareholder Name of Portfolio SharesOwned
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
BOB & CO WORLDWIDE PORTFOLIO 1,781,755.274 24.17%
C/O BANK OF BOSTON
P O BOX 1809
BOSTON, MA 02105
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
COMMUNITY FOUNDATION FOR WORLDWIDE PORTFOLIO 1,363,270.972 18.49%
SOUTHEASTERN MICHIGAN
ATTN MARIAM C NOLAND
PRESIDENT
333 WEST FORT STREET
SUITE 2010
DETROIT, MI 48226
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
LIVA & CO WORLDWIDE PORTFOLIO 1,012,058.930 13.73%
P O BOX 1412
ATTN IFP
ROCHESTER, NY 14603
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
GENEVA REGIONAL HEALTH SYSTEM INC WORLDWIDE PORTFOLIO 709,803.105 9.63%
ATTN ACCOUNTING DEPT
196 NORTH STREET
GENEVA, NY 14456
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
MASSACHUSETTS EYE & EAR WORLDWIDE PORTFOLIO 534,429.426 7.25%
INFIRMARY - PENSION
ATTN PETER J CHINETTI
VP FOR FINANCE
243 CHARLES STREET
BOSTON, MA 02114
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
CHASE MANHATTAN BANK WORLDWIDE PORTFOLIO 449,759.060 6.10%
FBO VIA HEALTH NON PENSION PLAN
PO BOX 1412
ROCHESTER, NY 14603-1412
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
ROCHESTER GENERAL HOSPITAL WORLDWIDE PORTFOLIO 393,419.932 5.34%
C/O RITA SZMIGEL
ACCOUNTING DEPT
1425 PORTLAND AVENUE
ROCHESTER, NY 14621
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
FOUNDATION OF THE MASSACHUSETTS EYE AND EAR INFIRMARY - WORLDWIDE PORTFOLIO 381,515.490 5.17%
UNRESTRICTED
ATTN PETER J CHINETTI
VP FOR FINANCE
243 CHARLES STREET
BOSTON, MA 02114
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
- ------------------------------------------------------------- ------------------------ ------------------ --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
MAC & CO A/C CLSF5049662 WORLDWIDE-HEDGED PORTFOLIO 6,564,804.584 36.08%
MUTUAL FUNDS OPERATIONS
PO BOX 3198
PITTSBURGH, PA 15230-3198
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
MITRA & CO WORLDWIDE-HEDGED PORTFOLIO 2,584,012.396 14.20%
ATTN SHARON J LESCH
MUTUAL FUND SPECIALIST
1000 N WATER ST 14TH FLOOR
MILWAUKEE, WI 53202
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
THE NORTHERN TRUST COMPANY TR WORLDWIDE-HEDGED PORTFOLIO 1,706,606.432 9.38%
U/A DTD 06/30/95
MARS BENEFIT TRUST
P O BOX 92956
ATTN MUTUAL FUNDS C 15
CHICAGO, IL 60675
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
WENDEL & CO WORLDWIDE-HEDGED PORTFOLIO 1,580,709.724 8.69%
A/C 706020
THE BANK OF NEW YORK
MUTUAL FUND/REORG DEPT
PO BOX 1066 WALL STREET STATION
NEW YORK, NY 10268
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
LAW SCHOOL ADMISSION COUNCIL INC WORLDWIDE-HEDGED PORTFOLIO 1,528,359.104 8.40%
ATTN MS ADELE SKOLITS
VICE PRESIDENT
BOX 40
NEWTOWN, PA 18940-0040
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
US TRUST COMPANY NA WORLDWIDE-HEDGED PORTFOLIO 1,130,039.369 6.21%
FBO COMMUNITY FOUNDATION SILICON VALLEY
4380 SW MACADAM
SUITE 450
PORTLAND, OR 97201
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
STATE STREET BANK & TRUST TR WORLDWIDE-HEDGED PORTFOLIO 1,067,962.103 5.87%
U/A DTD 2/95
STATE STREET BANK AND TRUST AS TRUSTEE
FOR THE GOLDMAN SACHS PENSION PLAN
200 NEWPORT AVE
NORTH QUINCY, MA 02171
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
- ------------------------------------------------------------- ----------------------------- ---------------- --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
FORD MOTOR COMPANY MASTER TRUST GLOBAL TACTICAL EXPOSURE 26,470,011.439 67.34%
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
HARBOR CAPITAL GROUP TRUST FOR GLOBAL TACTICAL EXPOSURE 3,441,056.514 8.75%
DEFINED BENEFIT PLANS
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
NORTHROP CORPORATION GLOBAL TACTICAL EXPOSURE 2,298,962.358 5.85%
EMPLOYEE BENEFIT PLAN
ATTN ROSE MARY ABELSON
1840 CENTURY PARK WEST
LOS ANGELES, CA 90067-2101
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
FIDELITY INVESTMENTS INSTITUTIONAL LIMITED DURATION PORTFOLIO 4,573,451.831 37.72%
OPERATIONS CO INC
FIIOC AS AGENT FOR CERTAIN EMPLOYEE
BENEFIT PLANS
100 MAGELLAN WAY (KW1C)
COVINGTON, KY 41017-1987
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
ROCKDALE HEALTH SYSTEMS LIMITED DURATION PORTFOLIO 2,741,221.204 22.61%
C/O FISCHER FRANCIS TREES & WATTS, INC.
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
BARCLAYS GLOBAL INVESTORS TR LIMITED DURATION PORTFOLIO 2,165,325.789 17.86%
FBO MARS DEFERRED COMPENSATION PLAN
STABLE VALUE MASTER FUND
THOMAS MUSMANNO
800 SCUDDERS MILL ROAD
PLAINSBORO, NJ 08536
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
CORPORATION FOR SUPPORTIVE HOUSING LIMITED DURATION PORTFOLIO 1,233,788.233 10.18%
ATTN JULIE SANDORF PRESIDENT
342 MADISON AVENUE
SUITE 505
NEW YORK, NY 10173
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
THE DOW CHEMICAL COMPANY FOUNDATION LIMITED DURATION PORTFOLIO 1,051,244.438 8.67%
ATTN WILLIAM H FALK
TREASURER
DORINCO 100
MIDLAND, MI 48674
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
FORD MOTOR COMPANY MASTER TRUST MORTGAGE-BACKED PORTFOLIO 22,209,407.668 41.03%
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
HARBOR CAPITAL GROUP TRUST FOR MORTGAGE-BACKED PORTFOLIO 7,765,313.872 14.35%
DEFINED BENEFIT PLANS
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
THE NORTHERN TRUST CO TR MORTGAGE-BACKED PORTFOLIO 7,695,147.685 14.22%
U/A DTD 4/1/93
FBO MONSANTO DEFINED CONTRIBUTION AND EMPLOYEE STOCK
OWNERSHIP TRUST
PO BOX 92956 (22-33706)
CHICAGO, IL 60675
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
INTERNATIONAL BANK FOR RECONSTRUCTION MORTGAGE-BACKED PORTFOLIO 4,317,159.721 7.98%
AND DEVELOPMENT RETIREMENT STAFF
BENEFITS PLAN
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
THE SOLUTIA INC SAVINGS AND MORTGAGE-BACKED PORTFOLIO 3,557,617.776 6.57%
INVESTMENT PLAN
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT MORTGAGE-BACKED PORTFOLIO 3,314,388.493 6.12%
STAFF RETIREMENT PLAN
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVE 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
COLONIAL WILLIAMSBURG FOUNDATION INTERNATIONAL PORTFOLIO 11,789,518.700 46.44%
ATTN WILLIAM L ROBERTS JR
VICE PRES
P O BOX 1776
WILLIAMSBURG, VA 23187-1776
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
MAC & CO INTERNATIONAL PORTFOLIO 2,654,152.207 10.46%
A/C PRHF5011032
MUTUAL FUNDS OPERATIONS
P O BOX 3198
PITTSBURGH, PA 15230-3198
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
EVELYN AND WALTER HAAS JR FUND INTERNATIONAL PORTFOLIO 2,654,152.207 10.46%
IRA S HIRSCHFIELD
PRESIDENT/TRUSTEE
ONE LOMBARD STREET SUITE 305
SAN FRANCISCO, CA 94111
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
STATE STREET BANK & TRUST TR INTERNATIONAL PORTFOLIO 2,288,716.038 9.02%
U/A DTD 10/1/85
RETIREMENT INCOME PLAN FOR EMPLOYEES OF COLONIAL
WILLIAMSBURG
P O BOX 1776
WILLIAMSBURG, VA 23187-1776
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
JEWISH FEDERATION OF METRO CHICAGO INTERNATIONAL PORTFOLIO 2,288,716.038 9.02%
JEFFREY C KING
CONTROLLER
1 SOUTH FRANKLIN STREET #625
CHICAGO, IL 60606
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
BANKERS TRUST COMPANY TR INTERNATIONAL PORTFOLIO 2,110,193.637 8.31%
U/A DTD 04/01/99
THE DOW CHEMICAL MASTER INVESTMENT TRUST
100 PLAZA ONE MS 3048
ATTN L BANERGEE
JERSEY CITY, NJ 07311-3999
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
HF INVESTMENT LP INTERNATIONAL PORTFOLIO 1,600,528.228 6.30%
ATTN RONALD L WHALEY
1700 OLD DEERFIELD ROAD
HIGHLAND PARK, IL 60035
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
FORD MOTOR COMPANY MASTER TRUST EMERGING MARKETS PORTFOLIO 10,225,273.838 39.68%
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
UTAH RETIREMENT SYSTEMS EMERGING MARKETS PORTFOLIO 6,153,561.418 23.88%
C/O FISHER FRANCIS TREES & WATTS INC
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
AMERITECH PENSION TRUST EMERGING MARKETS PORTFOLIO 2,458,914.598 9.54%
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
THE 1199 HEALTH CARE EMPLOYEES EMERGING MARKETS PORTFOLIO 2,019,211.046 7.83%
PENSION PLAN
C/O FISCHER FRANCIS TREES & WATTS, INC.
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
HARBOR CAPITAL GROUP TRUST FOR EMERGING MARKETS PORTFOLIO 1,811,707.308 7.03%
DEFINED BENEFIT PLANS
C/O FISCHER FRANCIS TREES & WATTS INC
200 PARK AVENUE, 46TH FLOOR
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
COOPER INDUSTRIES INC MONEY MARKET PORTFOLIO 25,891,429.950 100.00%
ATTN DWIGHT S KADAR
1001 FANNIN STREET
FIRST CITY TOWER
SUITE 3900 P O BOX 4446
HOUSTON, TX 77210
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
HEB INVESTMENT PLANS INTERNATIONAL OPPORTUNITIES 2,769,543.593 100.00%
C/O FISCHER FRANCIS TREES & WATTS PORTFOLIO
200 PARK AVENUE
NEW YORK, NY 10166
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS ASSET-BACKED 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS HIGH YIELD 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS ENHANCED EQUITY 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. MARKET PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS U.S. TREASURY PORTFOLIO 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC.
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS U.S. CORPORATE 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS BROAD MARKET PORTFOLIO 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC.
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
Number of
Shares Percentage of
Beneficially Outstanding
Name and Address of Shareholder Name of Portfolio Owned SharesOwned
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS GLOBAL HIGH YIELD 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS INFLATION-INDEXED 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS INFLATION-INDEXED 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. HEDGED PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS INTERNATIONAL CORPORATE 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC. PORTFOLIO
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
WILLIAM VASTARDIS MORTGAGE LIBOR PORTFOLIO 1.000 100.00%
C/O INVESTORS CAPITAL SERVICES, INC.
600 FIFTH AVENUE, 26TH FLOOR
NEW YORK, NY 10020
- ------------------------------------------------------------- ----------------------------- ----------------- --------------------
</TABLE>
<PAGE>
FFTW FUNDS, INC.
Money Market Portfolio Broad Market Portfolio
Mortgage LIBOR Portfolio International Portfolio
Limited Duration Portfolio Global Tactical Exposure Portfolio
Mortgage-Backed Portfolio International Opportunities Portfolio
Asset-Backed Portfolio International Corporate Portfolio
High-Yield Portfolio Emerging Markets Portfolio
Enhanced Equity Market Portfolio Global High Yield Portfolio
U.S. Treasury Portfolio Inflation-Indexed Portfolio
U.S. Corporate Portfolio Inflation-Indexed Hedged Portfolio
U.S. Short-Term Portfolio Worldwide Portfolio
Worldwide-Hedged Portfolio
SPECIAL MEETING OF SHAREHOLDERS, NOVEMBER 19, 1999
PLEASE VOTE PROMPTLY
This Proxy is Solicited on behalf of the Board of
Directors
The undersigned hereby appoints CARLA E. DEARING and WILLIAM E.
VASTARDIS, and each of them, with full power of substitution, as proxies to vote
for and in the name, place and stead of the undersigned at the Special Meeting
of Shareholders of FFTW Funds, Inc. (the "Fund") to be held at the offices of
Fischer Francis Trees & Watts, Inc., 200 Park Avenue, New York, New York 10166,
on Friday, November 19, 1999 at 10:00 a.m., Eastern Time, and at any adjournment
thereof, according to the number of votes and as fully as if personally present.
<PAGE>
Please mark boxes | or x in blue or black ink.
1. Election of Directors. (All Portfolios)
[ ] FOR THE NOMINEES [ ] WITHHOLD AUTHORITY
(except as marked to the contrary below)
(to vote for all nominees listed below)
Stephen P. Casper, Saul H. Hymans, and
Andrea Redmond
(INSTRUCTION: To withhold authority to vote for any individual nominee,
write that nominee's name on the
line provided below.)
-----------------------------------------------------------------------
2. Proposal 2A. Revision of the investment restriction applicable to borrowing
money so as to permit borrowing in conformity with the provisions of the
Investment Company Act of 1940 ("1940 Act").
<TABLE>
<S> <C> <C> <C>
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2B. Revision of the investment restriction applicable to
issuing senior securities so as to permit issuing senior securities in
conformity with the provisions of the 1940 Act.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2C. Reclassification of the investment restriction applicable
to purchasing securities on margin from a fundamental to a non-fundamental
investment restriction.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2D. Elimination of the investment restriction applicable to
making short sales of securities.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2E. Reclassification of the investment restriction applicable
to investing for control from a fundamental to a non-fundamental investment
restriction.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2F. Reclassification of the investment restriction applicable
to investing in issuers in which fund management invests from a fundamental to a
non-fundamental investment restriction.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2G. Elimination of the investment restriction applicable to
investing in other investment companies.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
Proposal 2H. Reclassification of the investment restriction applicable
to investing in unseasoned issuers or restricted securities from a fundamental
to a non-fundamental investment restriction.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
--------------------------------------------------------------------------------------
3. Ratification of selection of KPMG LLP as independent auditors.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
</TABLE>
This Proxy when properly executed will be voted in the manner (or not voted) as
specified. If no specification is made, the Proxy will be voted FOR all nominees
for Directors in Proposal 1 and FOR Proposals 2A through 2H, and 3.
Please sign personally and exactly as your name appears on the Proxy. If the
shares are registered in more than one name, each joint owner or each fiduciary
should sign personally. Only authorized officers should sign for corporations.
When signing as an attorney, administrator, trustee, or corporate officer,
please give your full title.
Dated __________________________ ________________________________________
Signature and Title (if applicable)
----------------------------------------
Signature and Title (if applicable)
