FFTW FUNDS, INC.
PROSPECTUS DATED MAY 1, 2000
SUPPLEMENT DATED JULY 24, 2000
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 Constrained. 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 Constrained by more than one year. As of December 31, 1999, the
duration of the JP Morgan Emerging Markets Bond Index Global Constrained was
4.44 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%
+ Effective June 1, 2000, the Emerging Markets Portfolio changed its performance
benchmark index from the Constructed Benchmark (consisting of 60% JP Morgan
Emerging Local Markets Index Plus and 40% JP Morgan Emerging Markets Bond
Index Plus) to the JP Morgan Emerging Markets Bond Index Global Constrained
because the new index better reflects the investment strategy of the
Portfolio.
<PAGE>
THE FOLLOWING INFORMATION REPLACES INFORMATION FOR THE EMERGING MARKETS
PORTFOLIO FOUND UNDER THE HEADING "PORTFOLIO MANAGERS" ON PAGE 23 OF THE
PROSPECTUS:
LIAQUAT AHAMED, MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER. Mr. Ahamed is
responsible for the management of the Emerging Markets Portfolio. He joined
FFTW in 1988, and from 1989 to 1996 was based in the London office, responsible
for global fixed income portfolios. Prior to joining FFTW, he worked at the
World Bank. Mr. Ahamed has a BA in economics from Trinity College, Cambridge
University (1974) and an AM in economics from Harvard University (1977), where
he was a teaching assistant. He is a member of the American Economics
Association.
