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BNP Paribas Investment Partners Trust Company
FFTW Income Plus Fund
Objective
Fund Facts
The FFTW Income Plus Fund seeks to obtain competitive fixed income returns in
different interest rate environments. The Fund has been developed to preserve
principal, maximize income and provide a high degree of liquidity without sacrificing
credit quality.
Inception Date
August 1985
Fund Assets
$277 Million
Valuation Frequency
Daily
Benchmark
ML 3-Month T-Bill
Internet Site
www.incomeplusfund.com
Cusip
00078X302
Investment Strategy
The investment strategy is implemented through a process, which includes
investment research, contract analysis and committee oversight as follows:

Maintains high credit quality through fundamental credit analysis and individual
contract evaluation.

Adjusts the average duration to maximize the interest return over a business
cycle with the average duration generally ranging between 0 to 3 years.
Characteristics
Trustee and Investment Adviser
BNP Paribas Investment Partners Trust Company is the trustee and sponsor of the
FFTW Income Plus Fund. Investment advisory services are performed by the
trustee’s affiliate, Fischer Francis Trees & Watts, Inc.
Monthly Annualized Yield
0.90%
Wtd. Average Maturity
0.63 years
Portfolio (Modified) Duration
0.56 years
BNP Paribas Investment Partners Trust Company and Fischer Francis Trees &
Watts, Inc. are wholly-owned subsidiaries of BNP Paribas Investment Partners USA
Holdings Inc., which is ultimately owned by BNP Paribas SA.
Portfolio (Effective) Duration
0.56 years
Wtd. Avg. Credit Quality
AA+/Aa1*
Why BNP Paribas Investment Partners?
Expense Ratio
0.50%
Experienced Management Team: BNPP IP, including its predecessors, have been
in the stable value industry for 26 years and Kevin Kehres, Head of Stable Value,
has 17 years experience managing stable value portfolios.
*S&P/Moody’s
Consistent Performance: The FFTW Income Plus Fund has posted a competitive
and consistent current and long-term track record.
Disciplined Investment Process: The Stable Value Group has delivered consistent
performance by adhering to its investment process and high credit quality guidelines
over its 26 year existence.
Commitment to Client Service: The Stable Value Group has demonstrated an
unwavering commitment to delivering high quality servicing to our clients.
Sector Distribution (1)
Cash
38%
GICs
36%
Non-Agency
CMBS
Corp.
1%
Securities
11%
(1)
ABS
2%
Agency
0.4%
Maturity Distribution (1)
2 - 3 yr
1%
1 - 2 yr
15%
US Treasury
12%
Sector distribution data based on
underlying market values.
3- 4 yr
3%
Less than 1-yr
81%
(1)
Maturity distribution data based on
underlying market values.
Top Issuers (1)
Holding
% Portfolio
ING
29.42%
New York Life GIC
25.26%
Jackson National Life
10.42%
RBC
6.50%
(1) Top ten issuer data based on underlying book values.
FFTW Income Plus Fund
First Quarter 2017 - Review
Fund Managers
Interest Rates (duration positioning vs 3-month T-Bill benchmark) added to performance in the quarter,
as cash and short-term rates rose along with the Federal Reserve movements. The Fund remains in a
short duration position on an absolute basis entering the 2nd quarter.
Spread product was a positive factor in performance, primarily in corporate credit.
investments performed well in a volatile risk asset environment.
High-quality
Exposure to fixed-rate GICs were a slight drag on performance, as reinvestment opportunities into
higher-yielding investments were limited
Performance
Cumulative Performance
1Q
2017
YTD
1
Year
3
Years
5
Years
10
Years
15
Years
20
Years
Since
Inception
FFTW Income Plus Fund
0.21%
0.21%
0.88%
0.89%
1.02%
1.98%
2.91%
3.73%
5.18%
Income Plus Share Class
D – Net 0.50%
0.08%
0.08%
0.38%
0.39%
0.51%
1.47%
2.39%
3.21%
4.66%
Merrill Lynch 3 Month T-Bill
Index
0.10%
0.10%
0.36%
0.17%
0.14%
0.68%
1.32%
2.23%
3.64%
Calendar Performance
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
FFTW Income Plus Fund
5.12% 4.57% 2.23% 2.32% 1.50% 1.40% 1.14% 0.84% 0.92% 0.93%
Income Plus Share Class
D – Net 0.50%
4.59% 4.05% 1.72% 1.81% 0.99% 0.90% 0.64% 0.34% 0.42% 0.42%
Merrill Lynch 3 Month TBill Index
5.00% 2.06% 0.21% 0.13% 0.10% 0.11% 0.07% 0.03% 0.05% 0.33%
Past performance is no guarantee of future results. Performance shown is gross and net of fees. Returns shown
are annualized and have been restated due to reimbursement to the fund for an under allocation of income during
the period of April 2002 to March 2005
Kevin Kehres, Portfolio Manager, has
been associated with FFTW, including
predecessor firms, since 1987. Mr.
Kehres has a BS from John Carroll
University and an MBA from De Paul
University. He is a CFA Charterholder.
Ken O’Donnell, Portfolio Manager, has
been associated with FFTW since
2002. Mr. O’Donnell holds an MS in
finance from Boston College and a BS
in mechanical engineering
from
Syracuse University. He is a member of
the New York Society of Security
Analysts and the CFA Institute and is a
CFA Charterholder.
Contact Information
BNP Paribas Investment Partners
155 N. Wacker Drive, Suite 4450
Chicago, IL 60606
[email protected]
www.incomeplusfund.com
Patrick O’Hara
Director, Business Development
Defined Contribution Plans
BNP Paribas Investment Partners
patrick.o’[email protected]
Tel (212) 681-3284
Christine Allen
Relationship Manager
BNP Paribas Investment Partners
Tel (212) 681-3162
[email protected]
Fee Disclosure *
Class D
Total Investment Return**
1.15%
Less: Wrap Fees
0.06%
Less: All Other
Administrative
Expenses
0.16%
Gross Rate
0.93%
Less: Expense Ratio
0.50%
Net Rate
0.42%
* For calendar year ending 2016
** Total return may slightly vary from
annual financial statements due to
rounding
Additional Disclosures
Any opinions expressed are current as of the date appearing in this document only. This document is confidential and may not be reproduced or redistributed, in
any form and by any means, without FFTW’s prior written consent.
This document is provided for your reference on a private and confidential basis to discuss an existing or potential advisory relationship. You are invited to meet
with FFTW to discuss any of the information provided herein or otherwise, including any and all terms (including fees) that may apply to the relationship.
A collective investment fund is available for purchase only be qualified retirement plans. Collective trust funds are not bank deposits or obligations and are neither
guaranteed nor insured.
The value of investments and the income derived from those investments may fluctuate over time such that the value of a portfolio at any given point in time may
be more or less than its original value.
No warranty is provided as to the performance or profitability of any portfolio or any part thereof, nor is any guarantee made that the investment objectives,
expectations or targets described in this presentation or anywhere else will be achieved, including without limitation any risk control, risk management or return
objectives, expectations or targets. A portfolio may suffer loss of principal, and income, if any, may fluctuate. The value of investments may be affected by a
variety of factors, including, but not limited to, economic and political developments, interest rates and issuer-specific events, market conditions, sector positioning,
and other factors. Performance results presented reflect the reinvestment of earnings. A portfolio’s returns will be reduced by all applicable fees and expenses. A
Disclosures Document under Section 408(b)(2) of ERISA regarding the Trustee’s or the Investment Adviser’s services or compensation may be made available.
The past performance of any representative portfolio is shown for illustrative purposes only in connection with a consideration of the proposed strategy. It
represents performance of a portfolio with a fundamental investment objective (if shown) that is similar to the investment objective of the strategy under
consideration. Past performance is not indicative of future performance, and, in addition, the past performance of any representative portfolio does not represent
the past or future performance of any other portfolio. The performance of the portfolio under consideration may differ from the performance of any representative
portfolio due to a number of factors including, without limitation, potentially differing rates of fees and expenses applicable to each such portfolio, cash levels,
investment timing issues, and regulatory considerations that could impact the performance of each portfolio relative to the other.
Comparisons to a benchmark are provided for informational purposes only. While FFTW seeks to design a portfolio that reflects appropriate risk and return
characteristics, including in respect of sector weights, credit quality and duration, it should be understood that such characteristics, as well as portfolio volatility,
may deviate to varying degrees from those of the benchmark.
The risk management process described herein or elsewhere includes an effort to monitor and manage risk, but should not be confused with and does not imply
low risk.
This document is not to be construed as an offer to buy or sell any financial instrument. It is presented only to provide information on investment strategies and
current financial market trends. Any analyses and opinions contained in this document are those of FFTW, and are based upon information obtained by FFTW
from sources which are believed to be reliable. FFTW provides no assurance as to the completeness or accuracy of the information contained in this document.
Any statements concerning financial market trends are based on current market conditions, which will fluctuate. Investment strategies which utilize foreign
exchange may entail increased risk due to political and economic uncertainties. Any views expressed in this document may change at any time. Information is
provided as of the date indicated and FFTW assumes no duty to update such information. There is no guarantee, either express or implied, that these investment
strategies work under all market conditions. Past performance is not a guarantee of future results. Readers should independently evaluate the information
presented and reliance upon such information is at their sole discretion.
The information contained herein (and any calculation of targeted/expected returns) includes estimates and assumptions and involves significant elements of
subjective judgment and analysis. No representations are made as to the accuracy of such estimates and assumptions, and there can be no assurance that
actual events will not differ materially from those estimated or assumed. In the event that any of the estimates or assumptions used in this presentation prove to
be untrue, results are likely to vary from those discussed herein.
Please note that FFTW utilizes pricing sources and methodologies which reflect market practice, including its own valuations if FFTW determines that valuation
data from independent sources is not available or is unreliable. However, your custodian, who maintains the official books and records for your portfolio, may
utilize different pricing sources resulting in deviations between FFTW's and the custodian’s valuations. Further, from time to time financial markets may suffer
periods of illiquidity caused by unusual volatility or extreme disturbances and prices realized could vary widely from recent valuations.
BNP Paribas Investment Partners Trust Company, an FFTW affiliate, is a registered trust company in the State of Illinois and Trustee and sponsor of the FFTW
Income Plus Fund. Fischer Francis Trees & Watts, Inc. is registered with the US Securities and Exchange Commission as an investment adviser under the
Investment Advisers Act of 1940, as amended.