FFTW FUNDS, INC.
PROSPECTUS DATED MAY 1, 2000
SUPPLEMENT DATED NOVEMBER 9, 2000
THIS SUPPLEMENT SUPERSEDES ALL PREVIOUS SUPPLEMENTS
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND FOR THE EMERGING
MARKETS PORTFOLIO IN THE RISK/RETURN SUMMARY CHART ON PAGE 10 OF THE
PROSPECTUS:
PRINCIPAL INVESTMENT STRATEGIES: The Portfolio invests primarily in debt
securities issued or guaranteed by foreign governments in emerging or
developing market countries. The performance objective of the Portfolio is to
outperform the JP Morgan Emerging Markets Bond Index Global. The
Adviser/Sub-Adviser allocates the Portfolio's investment assets among various
emerging markets countries (and currencies). Such allocations are not expected
to be comparable to, nor as diverse as the allocations accorded to such markets
(and currencies) by the major bond market indices. Portfolio managers will
screen out credit or default risks and highlight potentially risky emerging
market currencies by employing a fundamental economic analysis and internally
developed models.
DURATION: The Portfolio's average U.S. dollar-weighted duration generally will
not differ from the average duration of the JP Morgan Emerging Markets Bond
Index Global by more than one year. As of December 31, 1999, the duration of
the JP Morgan Emerging Markets Bond Index Global was 4.41 years.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND FOR THE EMERGING
MARKETS PORTFOLIO IN THE AVERAGE ANNUAL TOTAL RETURN CHART ON PAGE 19 OF THE
PROSPECTUS:
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AVERAGE ANNUAL TOTAL RETURNS PAST PAST PAST SINCE
(FOR THE PERIODS ENDING 1 YEAR 5 YEARS 10 YEARS INCEPTION
DECEMBER 31, 1999) (8/12/97)
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Emerging Markets Portfolio 11.73% N/A N/A -0.51%
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JP Morgan Emerging
Local Markets Index Plus 12.47% N/A N/A 8.65%
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JP Morgan Emerging
Markets Bond Index Plus 25.97% N/A N/A 2.68%
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Constructed Benchmark
(Consisting of 60% JP Morgan
Emerging Local Markets Index
Plus and 40% JP Morgan
Emerging Markets Bond Index
Plus) 17.89% N/A N/A 6.86%
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JP Morgan Emerging Markets
Bond Index Global
Constrained 19.56% N/A N/A 2.99%
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JP Morgan Emerging Markets
Bond Index Global+ 24.18% N/A N/A 3.16%
+ Effective October 1, 2000, the Emerging Markets Portfolio changed its
performance benchmark index from the JP Morgan Emerging Markets Bond Index
Global Constrained to the JP Morgan Emerging Markets Bond Index Global to
better reflect the investment strategy of the Portfolio. Prior to October 1,
2000, the Emerging Markets Portfolio used as its benchmark index a
Constructed Benchmark which consisted of 60% JP Emerging Local Markets Index
Plus and 40% JP Morgan Emerging Markets Bond Index Plus.
<PAGE>
THE FOLLOWING INFORMATION REPLACES INFORMATION FOR THE EMERGING MARKETS
PORTFOLIO FOUND UNDER THE HEADING "PORTFOLIO MANAGERS" ON PAGE 23 OF THE
PROSPECTUS:
ANTONIO MUOZ-SU, SENIOR PORTFOLIO MANAGER. Mr. Muoz-Su is responsible for the
management of the Emerging Markets Portfolio. He joined FFTW in September 2000,
after two years with the BNP Paribas Group in London, where he was responsible
for their Global Emerging Markets and European High Yield Debt Portfolios.
Prior to 1998, Mr. Muoz-Su was the head of the Emerging Markets Proprietary
trading desk at Banco Bilbao Vizcaya (formerly LatInvest). Prior to 1996, Mr.
Muoz-Su was a sales and trading assistant with J.P. Morgan specializing in
emerging markets in London. Mr. Muoz-Su has a Masters in Finance from the
London Business School (1995) and a Ph.D. in Music from the University of
Michigan (1987).
