<PAGE>
Deutsche Asset Management
Mutual Fund
Semi-Annual Report
June 30, 2000
Deutsche VIT Funds
Equity 500 Index
Formerly a BT Insurance Fund
A Member of the
Deutsche Bank Group [/]
<PAGE>
Deutsche VIT Equity 500 Index
--------------------------------------------------------------------------------
Table of Contents
Letter to Shareholders.................. 3
Deutsche VIT Equity 500 Index
Schedule of Investments............... 6
Statement of Assets and Liabilities... 12
Statement of Operations............... 13
Statements of Changes in Net Assets... 14
Financial Highlights.................. 15
Notes to Financial Statements......... 16
-------------------------
The Fund is not insured by the FDIC and is not a deposit, obligation of
or guaranteed by Deutsche Bank. The Fund is subject to investment
risks, including possible loss of principal amount invested.
-------------------------
--------------------------------------------------------------------------------
2
<PAGE>
Deutsche VIT Equity 500 Index
--------------------------------------------------------------------------------
Letter to Shareholders
We are pleased to present you with this semi-annual report for Deutsche VIT
Equity 500 Index, providing detailed reviews of the markets, the fund, and our
outlook. Included are complete financial summaries of the fund's operations and
listings of the fund's holdings.
With the acquisition of Bankers Trust by Deutsche Bank, the name of your Fund
has changed from the BT Insurance Funds Trust Equity 500 Index Fund to Deutsche
Asset Management VIT Funds ("Deutsche VIT") Equity 500 Index. However, the
Fund's investment objectives, policies and strategies remain the same.
MARKET REVIEW
The S&P 500 Index turned in virtually flat performance for the first six months
of 2000, with a semi-annual return of -0.42%.
. Equity markets struggled, weighed down at first by fears of economic
overheating and higher interest rates and then by concerns about profit growth
in a slowing economic environment.
. The market remained extremely narrow throughout, but, interestingly, Microsoft
(3.23%)* alone more than accounted for the largely flat return.
. On a sector basis, only four--energy, health care, technology, and utilities--
bettered the Index's semi-annual return. Energy and utilities were obvious
defensive sectors favored during the prolonged Federal Reserve Board watch.
Health care was the best performing sector during the six months.
. As has been the case for the past several years, large-capitalization growth-
oriented stocks outperformed their value counterparts for the semi-annual
period.
. Large cap stocks underperformed small and mid cap stocks.
During the first quarter, the S&P 500 Index gained 2.29%, but volatility was
high.
. At the lowest point of the quarter, on February 25, the Index was down 8% from
the beginning of the year. In March, the Index rose 9.78%, registering the
highest monthly gain in nine years.
. The technology sector dominated the Index, although within the sector, the
disparity in returns was significant. Intel Corp. (3.45%)* and Cisco (3.41%)*
were the top positive contributors to the Index on a capitalization basis,
while Microsoft, Lucent Technologies (1.49%)*, Yahoo! (0.51%)* and America
Online (0.93%)* were among the top negative contributors on a capitalization
basis. One third of the stocks in this sector had a negative return.
. Utilities and financials had strong results. Weaker performing sectors
included basic materials, consumer cyclicals and consumer staples.
. The quarter saw high turnover in the index as 9 companies were replaced and 19
changed the number of their outstanding shares.
The S&P 500 Index posted a -2.66% decline for the second quarter of 2000, as
virtually all major US equity indices were down dramatically due to both the
NASDAQ Composite correction that began in March and carried into
INVESTMENT REVIEW
<TABLE>
<CAPTION>
CUMULATIVE AVERAGE ANNUAL
TOTAL RETURNS TOTAL RETURNS
Period ended Past Past Since Past Since
June 30, 2000 6 months 1 year inception 1 year inception
<S> <C> <C> <C> <C> <C>
Deutsche VIT Equity 500 Index** -0.46% 7.05% 57.17% 7.05% 17.90%
(inception 10/1/97)
------------------------------------------------------------------------------------
S&P 500 Index*** -0.42% 7.24% 58.06% 7.24% 18.14%
------------------------------------------------------------------------------------
</TABLE>
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*Percentages are based on the Fund's net assets.
**Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Performance figures
assume the reinvestment of dividend and capital gain distributions, but do
not reflect the effect of the fees associated with the Contract purchased,
which would lower the returns shown. During the period the Fund waived
certain fees and expenses. Had these fees and expenses not been waived the
Fund's returns would have been lower. There's no guarantee that the Fund will
be able to mirror the S&P 500 Index closely enough to track its performance.
***"S&P 500" is a trademark of The McGraw-Hill Companies, Inc. and has been
licensed for the use by the Fund's investment advisor. The S&P 500 Index is
an unmanaged index used to portray the pattern of common stock movement of
500 large companies. Index returns do not reflect expenses which have been
deducted from the Fund's returns.
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3
<PAGE>
Deutsche VIT Equity 500 Index
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Letter to Shareholders
April and the more aggressive interest rate hike by the Federal Reserve Board in
May.
. Weakness in technology stocks led the market decline in April, and volatility
continued in May with more market swings on failed surges of investor
confidence. The market finally found its footing in June when the Federal
Reserve Board decided to hold interest rates steady on the back of signs of a
slowing economy.
. Health care was the best performing S&P sector for the quarter. Other top
performing sectors included utilities and consumer staples. Technology,
communication services, consumer cyclicals, and basic materials were the
weakest sectors.
. Best performing stocks included Nabisco Group (0.06%)*, St. Jude Medical
(0.03%)*, and Reebok International (0.01%)*. Citrix Systems (0.03%)*, Novell
(0.02%)*, and QUALCOMM (0.34%)* were the worst stock performers.
. Again, the quarter saw high turnover in the index as 16 companies were
replaced and 20 changed the number of their outstanding shares.
MANAGER OUTLOOK
Going forward, we continue to view the most likely outcome for the U.S. economy
to be a "soft landing." That is, we still expect that a combination of higher
interest rates relative to a year ago, moderating equity markets, and higher oil
prices may bring demand more in line with the economy's supply potential by late
2000/early 2001, thus keeping inflation pressures from becoming too entrenched.
Though encouraged by recent hints of cooling demand, we remain unconvinced that
a sufficient, long-lasting economic slowdown will occur without some further
tightening by the Federal Reserve Board after a few months' pause and a longer
period of consolidation in the equity markets. Moreover, while higher oil prices
should help slow demand by cutting into consumer purchasing power, they might
also feed into underlying inflation by boosting wage demands. Even if the
economy slows gracefully, the backdrop of slower profit growth and higher
inflation will likely be less favorable for equities than the fundamentals we've
seen for the last few years.
PORTFOLIO DIVERSIFICATION BY SECTOR
As of June 30, 2000
(Percentages are based on total investments.)
Technology...................... 33%
Financial....................... 13
Health Care..................... 12
Consumer Staples................ 10
Capital Goods................... 8
Consumer Goods.................. 7
Telecommunication............... 7
Energy.......................... 5
Basic Materials................. 2
Utility......................... 2
Transportation.................. 1
As an index fund, designed to replicate the broad diversification and returns of
the S&P 500 Index, we neither evaluate short-term fluctuations in the Fund's
performance nor manage according to a given outlook for the equity markets or
the economy in general. Still, we will continue monitoring economic conditions
and how they affect the financial markets, as we seek to closely track the
performance of the stock market.
We appreciate your support of the Deutsche VIT Equity 500 Index Fund, and we
look forward to serving your investment needs for many years to come.
/s/ J. A. Creighton
-------------------
James Creighton
Chief Investment Officer - Global Indexing
Deutsche VIT Equity 500 Index
June 30, 2000
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*Percentages are based on the Fund's net assets.
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4
<PAGE>
Deutsche VIT Equity 500 Index
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Performance Comparison
[GRAPH APPEARS HERE]
DEUTSCHE VIT EQUITY 500 INDEX AND S&P 500 INDEX
AVERAGE GROWTH OF A $10,000 INVESTMENT
(SINCE OCTOBER 1, 1997)
Deutsche VIT Equity 500
Index $15,717 S&P 500 Index $15,806
Oct-1997 10,000 10,000
Dec-1997 10,190 10,189
Jun-1998 12,030 11,993
Dec-1998 13,116 13,102
Jun-1999 14,682 14,725
Dec-1999 15,790 15,856
Jun-2000 15,717 15,806
Average Annual Total Return for the Periods Ended June 30, 2000
One Year 17.05% Since 10/1/97/1/ 17.90%
-------------------------------------------------------------------------------
/1/The Fund's inception date.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance figures assume the reinvestment of
dividend and capital gain distributions, but do not reflect the effect of fees
associated with the Contract purchased, which would lower the returns shown.
During the period, the Fund waived certain fees and expenses. Had these fees and
expenses not been waived the Fund's returns would have been lower.
The S&P 500 Index is an unmanaged index used to portray the pattern of common
stock movement of 500 large companies.
-------------------------------------------------------------------------------
5
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Schedule of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
COMMON STOCKS - 96.09%
11,200 3Com Corp./(a)/...................... $ 645,400
48,500 Abbott Laboratories.................. 2,161,281
1 Abercrombie & Fitch Co. -
Class A/(a)/........................ 12
3,400 Adaptec, Inc./(a)/................... 77,350
9,500 ADC Telecommunications,
Inc./(a)/........................... 796,813
3,700 Adobe Systems, Inc................... 481,000
1,300 Adolph Coors Co. - Class B........... 78,650
4,900 Advanced Micro Devices,
Inc./(a)/........................... 378,525
12,700 AES Corp./(a)/....................... 579,437
4,600 Aetna, Inc........................... 295,262
8,500 Aflac, Inc........................... 390,469
14,218 Agilent Technologies, Inc............ 1,048,578
7,400 Air Products & Chemicals, Inc........ 228,012
3,400 Alberto-Culver Co.................... 103,913
13,442 Albertsons, Inc...................... 446,946
6,900 Alcan Aluminum Ltd. ADR.............. 213,900
27,576 Alcoa, Inc........................... 799,704
2,650 Allegheny Technologies, Inc.......... 47,700
4,400 Allergan, Inc........................ 327,800
8,100 Allied Waste Industries, Inc./(a)/... 81,000
23,500 Allstate Corp........................ 522,875
10,200 ALLTEL Corp.......................... 631,763
6,300 Altera Corp.......................... 642,206
3,300 ALZA Corp./(a)/...................... 195,112
2,600 Amerada Hess Corp.................... 160,550
3,900 Ameran Corp.......................... 131,625
72,600 America Online, Inc./(a)/............ 3,829,650
9,240 American Electric Power Co........... 273,735
43,500 American Express Co.................. 2,267,438
7,900 American General Corp................ 481,900
1,900 American Greetings Corp. -
Class A............................. 36,100
41,100 American Home Products
Corp................................ 2,414,625
48,623 American International Group,
Inc................................. 5,713,203
5,600 American Power Conversion
Corp................................ 228,550
32,100 Amgen, Inc./(a)/..................... 2,255,025
4,600 AMR Corp./(a)/....................... 121,613
11,800 AmSouth Bancorp...................... 185,850
4,800 Anadarko Petroleum Co................ 236,700
11,000 Analog Devices, Inc./(a)/............ 836,000
2,600 Andrew Corp./(a)/.................... 87,262
14,200 Anheuser-Busch Cos., Inc............. 1,060,563
8,100 Aon Corp............................. 251,606
4,400 Apache Corp.......................... 258,775
10,800 Apple Computer, Inc./(a)/............ 565,650
25,100 Applied Materials, Inc./(a)/......... 2,274,688
18,239 Archer-Daniels-Midland Co............ 178,970
<CAPTION>
Shares Description Value
<C> <S> <C>
1,300 Armstrong World Industries,
Inc................................. $ 19,906
2,300 Ashland, Inc......................... 80,644
22,494 Associates First Cap Corp............ 501,897
117,574 AT&T Corp............................ 3,718,278
2,300 Autodesk, Inc........................ 79,781
19,900 Automatic Data Processing,
Inc................................. 1,065,894
4,100 AutoZone, Inc./(a)/.................. 90,200
4,000 Avery Dennison Corp.................. 268,500
7,500 Avon Products, Inc................... 333,750
10,140 Baker Hughes, Inc.................... 324,480
700 Ball Corp............................ 22,531
36,000 Banc One Corp........................ 956,250
52,271 Bank of America Corp................. 2,247,653
23,000 Bank of New York Co., Inc............ 1,069,500
1,600 Bard (C. R.), Inc................... 77,000
12,500 Barrick Gold Corp.................... 227,344
1,800 Bausch & Lomb........................ 139,275
9,100 Baxter International, Inc............ 639,844
10,600 BB&T Corp............................ 253,075
3,872 Bear Stearns Cos., Inc............... 161,172
7,900 Becton, Dickinson & Co............... 226,631
4,700 Bed Bath & Beyond, Inc./(a)/......... 170,375
48,900 Bell Atlantic Corp................... 2,484,731
59,300 BellSouth Corp....................... 2,527,663
1,500 Bemis Co., Inc....................... 50,437
6,400 Best Buy Co., Inc./(a)/.............. 404,800
8,700 Bestfoods............................ 602,475
2,400 Bethlehem Steel Corp./(a)/........... 8,550
4,600 Biogen, Inc.......................... 296,700
3,700 Biomet, Inc.......................... 142,219
3,000 Black & Decker Corp.................. 117,937
2,800 Block (H&R), Inc..................... 90,650
7,700 BMC Software, Inc./(a)/.............. 280,930
28,800 Boeing Co............................ 1,204,200
1,600 Boise Cascade Corp................... 41,400
13,000 Boston Scientific Corp./(a)/......... 285,187
2 BP Amoco Plc......................... 113
500 Briggs & Stratton Corp............... 17,125
62,400 Bristol-Myers Squibb Co.............. 3,634,800
1,400 Broadcom Corp. - Class A/(a)/........ 306,513
2,300 Brown-Forman Corp.................... 123,625
2,900 Brunswick Corp....................... 48,031
13,800 Burlington Northern Santa
Fe Corp............................. 316,538
7,900 Burlington Resources, Inc............ 302,175
5,800 Cabletron Systems, Inc./(a)/......... 146,450
13,200 Campbell Soup Co..................... 384,450
6,000 Capital One Financial Corp........... 267,750
8,700 Cardinal Health, Inc................. 643,800
19,100 Carnival Corp........................ 372,450
11,000 Caterpillar, Inc..................... 372,625
21,563 Cendant Corp./(a)/................... 301,882
</TABLE>
See Notes to Financial Statements.
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6
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Schedule of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
1,900 Centex Corp.......................... $ 44,650
4,150 CenturyTel, Inc...................... 119,313
4,500 Ceridian Corp./(a)/.................. 108,281
6,600 Charter One Financial, Inc........... 151,800
38,950 Chase Manhattan Corp................. 1,794,134
20,500 Chevron Corp......................... 1,738,656
6,100 Chubb Corp........................... 375,150
5,100 CIGNA Corp........................... 476,850
4,600 Cincinnati Financial Corp............ 144,613
4,400 CINergy Corp......................... 111,925
6,300 Circuit City Stores, Inc............. 209,081
219,900 Cisco Systems, Inc./(a)/............. 13,977,394
105,878 Citigroup, Inc....................... 6,379,149
6,600 Citrix Systems, Inc./(a)/............ 124,988
10,700 Clear Channel Communications,
Inc./(a)/........................... 802,500
7,500 Clorox Co............................ 336,094
3,000 CMS Energy Corp...................... 66,375
6,900 Coastal Corp......................... 420,038
77,800 Coca-Cola Co......................... 4,468,638
13,000 Coca-Cola Enterprises, Inc........... 212,063
18,400 Colgate-Palmolive Co................. 1,101,700
2,650 Columbia Energy Group................ 173,906
29,200 Comcast Corp. - Class A.............. 1,182,600
4,700 Comerica, Inc........................ 210,913
54,683 Compaq Computer Corp................. 1,397,834
18,550 Computer Associates
International, Inc.................. 949,528
5,300 Computer Sciences Corp./(a)/......... 395,844
11,200 Compuware Corp./(a)/................. 116,200
5,100 Comverse Technology, Inc./(a)/....... 474,300
16,200 ConAgra, Inc......................... 308,813
6,700 Conexant Systems, Inc................ 325,788
19,962 Conoco, Inc. - Class B............... 490,317
11,466 Conseco, Inc......................... 111,794
6,700 Consolidated Edison Co. of
New York, Inc....................... 198,488
3,000 Consolidated Stores Corp./(a)/....... 36,000
4,200 Constellation Energy Group........... 136,763
5,000 Convergys Corp....................... 259,375
3,000 Cooper Industries, Inc............... 97,688
1,500 Cooper Tire & Rubber Co.............. 16,687
8,783 Corning, Inc......................... 2,370,312
14,000 Costco Cos., Inc./(a)/............... 462,000
3,200 Countrywide Credit Industries........ 97,000
4,500 CP&L, Inc............................ 143,719
1,700 Crane Co............................. 41,331
3,600 Crown Cork & Seal Co., Inc........... 54,000
6,500 CSX Corp............................. 137,719
2,300 Cummins Engine, Inc.................. 62,675
12,900 CVS Corp............................. 516,000
6,085 Dana Corp............................ 128,926
4,300 Danaher Corp......................... 212,581
4,300 Darden Restaurants, Inc.............. 69,875
<CAPTION>
Shares Description Value
<C> <S> <C>
6,700 Deere & Co........................... $ 247,900
80,900 Dell Computer Corp./(a)/............. 3,989,381
16,473 Delphi Automotive
Systems Corp........................ 239,888
4,100 Delta Air Lines, Inc................. 207,306
2,200 Deluxe Corp.......................... 51,837
3,100 Dillard Department Stores,
Inc. - Class A...................... 37,975
65,400 Disney (Walt) Co..................... 2,538,338
10,147 Dollar General Corp.................. 197,866
8,416 Dominion Resources, Inc.............. 360,836
3,900 Donnelley (R.R.) & Sons Co........... 87,994
6,800 Dover Corp........................... 275,825
20,700 Dow Chemical Co...................... 624,881
2,800 Dow Jones & Co., Inc................. 205,100
4,100 DTE Energy Co........................ 125,306
33,045 Du Pont (E.I.) de Nemours
& Co................................ 1,445,719
11,800 Duke Energy Corp..................... 665,225
5,000 Dun & Bradstreet Corp................ 143,125
1,100 Eastern Enterprises.................. 69,300
2,500 Eastman Chemical Co.................. 119,375
10,000 Eastman Kodak Co..................... 595,000
2,500 Eaton Corp........................... 167,500
4,200 Ecolab, Inc.......................... 164,063
10,100 Edison International................. 207,050
7,300 El Paso Energy Corp.................. 371,844
14,800 Electronic Data Systems Corp......... 610,500
68,200 EMC Corp. /(a)/...................... 5,247,138
13,400 Emerson Electric Co.................. 809,025
4,100 Engelhard Corp....................... 69,956
23,100 Enron Corp........................... 1,489,950
8,000 Entergy Corp......................... 217,500
4,000 Equifax, Inc......................... 105,000
109,346 Exxon Corp........................... 8,583,661
32,600 Fannie Mae........................... 1,701,312
9,260 Fed Ex Corp./(a)/.................... 351,880
6,500 Federated Department Stores,
Inc./(a)/........................... 219,375
10,000 Fifth Third Bancorp.................. 632,500
13,200 First Data Corp...................... 655,050
30,948 First Union Corp..................... 767,897
30,582 Firstar Corp......................... 644,133
6,800 FirstEnergy Corp..................... 158,950
28,618 Fleet Financial Group, Inc........... 973,012
2,800 Florida Progress Corp................ 131,250
2,400 Fluor Corp........................... 75,900
1,000 FMC Corp./(a)/....................... 58,000
37,700 Ford Motor Co........................ 1,621,100
6,600 Fort James Corp...................... 152,625
5,200 Fortune Brands, Inc.................. 119,925
6,800 FPL Group, Inc....................... 336,600
8,100 Franklin Resources, Inc.............. 246,038
21,700 Freddie Mac.......................... 878,850
</TABLE>
See Notes to Financial Statements.
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7
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Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Schedule of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
4,800 Freeport-McMoRan Copper
& Gold, Inc. - Class B/(a)/......... $ 44,400
8,400 Gannet Co., Inc...................... 502,425
26,725 Gap, Inc............................. 835,156
10,000 Gateway 2000/(a)/.................... 567,500
6,700 General Dynamics Corp................ 350,075
310,800 General Electric Co.................. 16,472,400
9,200 General Mills, Inc................... 351,900
16,900 General Motors Corp.................. 981,256
5,300 Genuine Parts Co..................... 106,000
5,300 Georgia-Pacific (Georgia
Pacific Group)...................... 139,125
32,900 Gillette Co.......................... 1,149,444
26,460 Global Crossing Ltd./(a)/............ 696,229
5,100 Golden West Financial Group.......... 208,144
3,100 Goodrich (B.F.) Co................... 105,594
4,900 Goodyear Tire & Rubber Co............ 98,000
3,700 GPU, Inc............................. 100,131
2,400 Grace (W.R.) & Co./(a)/.............. 29,100
3,000 Grainger (W.W.) Inc.................. 92,438
1,300 Great Atlantic & Pacific Tea
Co., Inc............................ 21,612
1,900 Great Lakes Chemical Corp............ 59,850
30,600 GTE Corp............................. 1,904,850
9,700 Guidant Corp. /(a)/.................. 480,150
14,200 Halliburton Co....................... 670,063
2,200 Harcourt General, Inc................ 119,625
9,600 Harley-Davidson, Inc................. 369,600
2,400 Harrah's Entertainment, Inc./(a)/.... 50,250
6,900 Hartford Financial Services
Group, Inc.......................... 385,969
5,559 Hasbro, Inc.......................... 83,732
17,600 HCA-The Healthcare Corp.............. 534,600
12,100 HEALTHSOUTH Corp./(a)/............... 86,969
11,600 Heinz (H. J.) Co..................... 507,500
3,600 Hercules, Inc........................ 50,625
4,300 Hershey Foods Corp................... 209,356
31,500 Hewlett-Packard Co................... 3,933,562
15,800 Hilton Hotels Corp................... 148,125
72,500 Home Depot, Inc...................... 3,620,469
7,500 Homestake Mining Co.................. 51,563
24,675 Honeywell, Inc....................... 831,239
14,906 Household International, Inc......... 619,531
4,600 Humana, Inc./(a)/.................... 22,425
6,864 Huntington Bancshares, Inc........... 108,537
9,400 Illinois Tool Works, Inc............. 535,800
9,700 IMS Health, Inc...................... 174,600
5,600 Inco Ltd. ADR/(a)/................... 86,100
5,800 Ingersoll-Rand Co.................... 233,450
106,000 Intel Corp........................... 14,170,875
55,900 International Business
Machines Corp....................... 6,124,544
<CAPTION>
Shares Description Value
<C> <S> <C>
3,400 International Flavors &
Fragrances, Inc..................... $ 102,638
15,508 International Paper Co............... 462,333
8,800 Interpublic Group of Cos., Inc....... 378,400
2,500 ITT Industries, Inc.................. 75,937
2,900 Jefferson-Pilot Corp................. 163,669
43,900 Johnson & Johnson Co................. 4,472,312
2,300 Johnson Controls, Inc................ 118,019
3,400 Kansas City Southern
Industries, Inc..................... 301,538
1,600 Kaufman and Broad Home
Corp................................ 31,700
13,300 Kellogg Co........................... 395,675
2,736 Kerr-McGee Corp...................... 161,253
13,700 KeyCorp.............................. 241,462
17,500 Kimberly-Clark Corp.................. 1,004,062
5,700 KLA-Tencor Corp./(a)/................ 333,806
17,700 Kmart Corp./(a)/..................... 120,581
2,500 Knight-Ridder, Inc................... 132,969
11,000 Kohl's Corp./(a)/.................... 611,875
26,400 Kroger Co./(a)/...................... 582,450
6,100 Leggett & Platt, Inc................. 100,650
3,900 Lehman Brothers Holdings, Inc........ 368,794
4,000 Lexmark International
Group, Inc. - Class A/(a)/.......... 269,000
35,300 Lilly (Eli) & Co..................... 3,525,588
14,276 Limited, Inc......................... 308,718
6,300 Lincoln National Corp................ 227,587
9,800 Linear Technology Corp............... 626,588
1,900 Liz Claiborne, Inc................... 66,975
12,000 Lockheed Martin Corp................. 297,750
3,000 Loews Corp........................... 180,000
1,000 Longs Drug Stores Corp............... 21,750
3,000 Louisiana-Pacific Corp............... 32,625
12,000 Lowe's Cos., Inc..................... 492,750
9,400 LSI Logic Corp....................... 508,775
103,360 Lucent Technologies, Inc............. 6,124,080
2,100 Mallinckrodt, Inc.................... 91,219
2,800 Manor Care, Inc./(a)/................ 19,600
6,800 Marriot International, Inc. -
Class A............................. 245,225
8,350 Marsh & McLennan Cos., Inc........... 872,053
14,100 Masco Corp........................... 254,681
13,200 Mattel, Inc.......................... 174,075
8,800 Maxim Integrated Products,
Inc................................. 597,850
10,350 May Department Stores Co............. 248,400
2,600 Maytag Corp.......................... 95,875
2,700 MBIA, Inc............................ 130,106
24,925 MBNA Corp............................ 676,091
2,900 McDermott International, Inc......... 25,556
42,100 McDonald's Corp...................... 1,386,669
</TABLE>
See Notes to Financial Statements.
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8
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Schedule of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
6,400 McGraw-Hill Cos., Inc................ $ 345,600
8,425 McKesson HBOC, Inc................... 176,398
3,100 Mead Corp............................ 78,275
6,000 MedImmune, Inc....................... 444,000
37,600 Medtronic, Inc....................... 1,872,950
15,800 Mellon Bank Corp..................... 575,712
72,700 Merck & Co., Inc..................... 5,570,637
2,200 Mercury Interactive Corp./(a)/....... 212,850
1,700 Meredith Corp........................ 57,375
12,100 Merrill Lynch & Co., Inc............. 1,391,500
2,800 MGIC Investment...................... 127,400
17,800 Micron Technology, Inc./(a)/......... 1,567,513
165,800 Microsoft Corp./(a)/................. 13,264,000
1,500 Millipore Corp....................... 113,062
12,600 Minnesota Mining &
Manufacturing Co.................... 1,039,500
6,300 Molex, Inc........................... 303,187
5,200 Morgan (J.P.) & Co., Inc............. 572,650
35,700 Morgan Stanley, Dean Witter,
Discover & Co....................... 2,972,025
67,781 Motorola, Inc........................ 1,969,885
9,800 Nabisco Group Holdings Corp.......... 254,187
18,900 National City Corp................... 322,481
6,000 National Semiconductor Corp./(a)/.... 340,500
1,400 National Service Industries, Inc..... 27,300
1,900 Navistar International Corp./(a)/.... 59,019
2,900 NCR Corp............................. 112,919
9,900 Network Appliance, Inc./(a)/......... 796,950
3,200 New Century Energies, Inc............ 96,000
5,400 New York Times Co. - Class A......... 213,300
8,824 Newell Rubbermaid, Inc............... 227,218
5,100 Newmont Mining Corp.................. 110,287
24,200 Nextel Communication, Inc. -
Class A/(a)/........................ 1,480,738
4,600 Niagara Mohawk Power
Corp./(a)/.......................... 64,113
1,500 Nicor, Inc........................... 48,937
8,700 Nike, Inc. - Class B................. 346,369
4,100 Nordstrom, Inc....................... 98,912
11,600 Norfolk Southern Corp................ 172,550
93,980 Nortel Networks Corp................. 6,414,135
4,200 Northern States Power Co............. 84,787
7,300 Northern Trust Corp.................. 474,956
2,000 Northrop Grumman Corp................ 132,500
10,000 Novell, Inc./(a)/.................... 92,500
3,600 Novellus Systems, Inc................ 203,625
2,600 Nucor Corp........................... 86,288
11,000 Occidental Petroleum Corp............ 231,688
9,800 Office Depot, Inc./(a)/.............. 61,250
4,095 Old Kent Financial Corp.............. 109,541
5,600 Omnicom Group, Inc................... 498,750
1,000 ONEOK, Inc........................... 25,937
<CAPTION>
Shares Description Value
<C> <S> <C>
89,700 Oracle Corp./(a)/.................... $ 7,540,406
1,700 Owens Corning........................ 15,725
4,000 Owens-Illinois, Inc. /(a)/........... 46,750
3,200 PACCAR, Inc.......................... 127,000
4,800 Pactiv Corp./(a)/.................... 37,800
4,600 Paine Webber Group, Inc.............. 209,300
3,600 Pall Corp............................ 66,600
8,700 Parametric Technology Corp./(a)/..... 95,700
3,700 Parker-Hannifin Corp................. 126,725
12,000 Paychex, Inc......................... 504,000
6,300 PE Corp-PE Biosystems Group.......... 415,012
5,500 PECO Energy Co....................... 221,719
9,000 Penney (J.C.) Co., Inc............... 165,937
1,200 Peoples Energy Corp.................. 38,850
8,200 PeopleSoft, Inc./(a)/................ 137,350
45,700 PepsiCo, Inc......................... 2,030,793
1,700 PerkinElmer, Inc..................... 112,413
198,800 Pfizer, Inc.......................... 9,542,400
12,100 PG&E Corp............................ 297,962
39,388 Pharmacia & Upjohn, Inc.............. 2,035,867
2,420 Phelps Dodge Corp.................... 89,994
72,200 Philip Morris Cos., Inc.............. 1,917,812
7,700 Phillips Petroleum Co................ 390,294
2,200 Pinnacle West Capital Corp........... 74,525
8,400 Pitney Bowes, Inc.................... 336,000
9,700 Placer Dome, Inc. ADR................ 92,756
9,100 PNC Bank Corp........................ 426,562
1,500 Polaroid Corp........................ 27,094
700 Potlatch Corp........................ 23,188
3,860 PP&L Resources, Inc.................. 84,679
5,600 PPG Industries, Inc.................. 248,150
5,000 Praxair, Inc......................... 187,188
41,500 Procter & Gamble Co.................. 2,375,875
2,300 Progressive Corp..................... 170,200
4,350 Providian Financial Corp............. 391,500
6,800 Public Service Enterprise
Group, Inc.......................... 235,450
1,400 Pulte Corp........................... 30,275
4,100 Quaker Oats Co....................... 308,013
23,200 QUALCOMM, Inc./(a)/.................. 1,392,000
3,900 Quintiles Transnational Corp./(a)/... 55,087
6,000 RadioShack Corp...................... 284,250
9,600 Ralston-Purina Group................. 191,400
10,900 Raytheon Co. - Class B............... 209,825
1,700 Reebok International, Ltd./(a)/...... 27,094
6,500 Regions Financial Corp............... 129,188
8,800 Reliant Energy, Inc.................. 260,150
10,200 Rite Aid Corp........................ 66,938
5,900 Rockwell International Corp.......... 185,850
6,942 Rohm & Haas Co....................... 239,499
2,600 Rowan Cos., Inc./(a)/................ 78,975
67,400 Royal Dutch Petroleum Co.
ADR................................. 4,149,312
</TABLE>
See Notes to Financial Statements.
------------------------------------------------------------------------------
9
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Schedule of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
1,100 Russell Corp......................... $ 22,000
1,900 Ryder System, Inc.................... 35,981
3,990 Sabre Holdings Corp.................. 113,715
4,000 SAFECO Corp.......................... 79,500
16,100 Safeway, Inc./(a)/................... 726,512
4,100 Sanmina Corp......................... 350,550
1,900 Sapient Corp......................... 203,181
27,400 Sara Lee Corp........................ 529,162
107,462 SBC Communications, Inc.............. 4,647,732
46,200 Schering-Plough Corp................. 2,333,100
17,200 Schlumberger, Ltd.................... 1,283,550
41,600 Schwab (Charles) Corp................ 1,398,800
4,800 Scientific Atlanta, Inc.............. 357,600
6,800 Seagate Technology, Inc./(a)/........ 374,000
13,500 Seagram Co., Ltd. ADR................ 783,000
2,853 Sealed Air Corp./(a)/................ 149,426
11,100 Sears, Roebuck & Co.................. 362,137
5,610 Sempra Energy........................ 95,370
800 Shared Medical Systems Corp.......... 58,350
5,400 Sherwin-Williams Co.................. 114,412
6,500 Siebel Systems, Inc.................. 1,063,156
2,700 Sigma-Aldrich Corp................... 78,975
4,600 SLM Holding Corp..................... 172,212
1,500 Snap-on, Inc......................... 39,938
18,400 Solectron Corp./(a)/................. 770,500
21,900 Southern Co.......................... 510,544
5,000 SouthTrust Corp...................... 113,125
15,950 Southwest Airlines Co................ 302,053
500 Springs Industries, Inc.............. 16,094
27,400 Sprint Corp.......................... 1,397,400
28,400 Sprint PCS/(a)/...................... 1,689,800
2,586 St. Jude Medical, Inc./(a)/.......... 118,633
6,412 St. Paul Cos., Inc................... 218,810
2,500 Stanley Works........................ 59,375
14,450 Staples, Inc./(a)/................... 222,169
5,900 Starbucks Corp....................... 225,306
5,300 State Street Corp.................... 562,131
5,300 Summit Bancorp....................... 130,512
49,800 Sun Microsystems, Inc./(a)/.......... 4,528,688
3,000 Sunoco, Inc.......................... 88,312
10,400 SunTrust Banks, Inc.................. 475,150
4,000 SUPERVALU, Inc....................... 76,250
8,350 Synovus Financial Corp............... 147,169
10,200 Sysco Corp........................... 429,675
4,000 T. Rowe Price Associates, Inc........ 170,000
13,800 Target Corp.......................... 800,400
1,700 Tektronix, Inc....................... 125,800
1 Teledyne Technologies, Inc./(a)/..... 17
12,500 Tellabs, Inc./(a)/................... 855,469
1,700 Temple-Inland, Inc................... 71,400
9,600 Tenet Healthcare Corp./(a)/.......... 259,200
5,400 Teradyne, Inc./(a)/.................. 396,900
<CAPTION>
Shares Description Value
<C> <S> <C>
17,600 Texaco, Inc.......................... $ 937,200
51,300 Texas Instruments, Inc............... 3,523,669
5,200 Textron, Inc......................... 282,425
4,500 Thermo Electron Corp./(a)/........... 94,781
3,100 Thomas & Betts Corp.................. 59,288
1,900 Tiffany & Co......................... 128,250
41,000 Time Warner, Inc..................... 3,116,000
1,600 Timken Co............................ 29,800
9,600 TJX Cos., Inc........................ 180,000
4,400 Torchmark Corp....................... 108,625
4,100 Tosco Corp........................... 116,081
6,800 Toys 'R' Us, Inc./(a)/............... 99,025
6,120 Transocean Sedco Forex, Inc.......... 327,038
10,225 Tribune Co........................... 357,875
4,800 Tricon Global Restaurants,
Inc./(a)/........................... 135,600
3,600 TRW, Inc............................. 156,150
1,900 Tupperware Corp...................... 41,800
9,400 TXU Corp............................. 277,300
54,054 Tyco International, Ltd.............. 2,560,808
2,200 U.S. Airways Group, Inc./(a)/........ 85,800
23,500 U.S. Bancorp......................... 452,375
6,000 Unicom Corp.......................... 232,125
17,900 Unilever N.V. ADR.................... 769,700
4,300 Union Carbide Corp................... 212,850
7,700 Union Pacific Corp................... 286,344
7,300 Union Pacific Resources
Group, Inc.......................... 160,600
4,200 Union Planters Corp.................. 117,337
9,700 Unisys Corp./(a)/.................... 141,256
5,300 United Healthcare Corp............... 454,475
14,800 United Technologies Corp............. 871,350
7,300 Unocal Corp.......................... 241,812
7,949 UnumProvident Corp................... 159,477
15,838 US West, Inc......................... 1,358,108
5,000 UST, Inc............................. 73,438
10,000 USX-Marathon Group................... 250,625
3,700 USX-U.S. Steel Group, Inc............ 68,681
3,700 V.F. Corp............................ 88,106
12,500 VERITAS Software Corp................ 1,412,695
48,825 Viacom, Inc. - Class B /(a)/......... 3,329,255
4,936 Visteon Corp./(a)/................... 59,850
3,300 Vulcan Materials Co.................. 140,869
6,300 Wachovia Corp........................ 341,775
31,500 Walgreen Co.......................... 1,013,906
140,400 Wal-Mart Stores, Inc................. 8,090,550
17,222 Washington Mutual, Inc............... 497,285
18,897 Waste Management, Inc................ 359,043
2,800 Watson Pharmaceuticals, Inc./(a)/.... 150,500
1,900 Wellpoint Health Networks,
Inc./(a)/........................... 137,631
50,800 Wells Fargo & Co..................... 1,968,500
</TABLE>
See Notes to Financial Statements.
-------------------------------------------------------------------------------
10
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Schedule of Investments June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
<C> <S> <C>
4,000 Wendy's International, Inc........... $ 71,250
3,000 Westvaco Corp........................ 74,438
7,600 Weyerhauser Co....................... 326,800
2,300 Whirlpool Corp....................... 107,237
3,400 Willamette Industries, Inc........... 92,650
13,400 Williams Cos., Inc................... 558,612
4,600 Winn-Dixie Stores, Inc./(a)/......... 65,838
91,118 WorldCom, Inc./(a)/.................. 4,180,038
2,200 Worthington Industries, Inc.......... 23,100
3,600 Wrigley, (WM.) Jr., Co............... 288,675
20,900 Xerox Corp........................... 433,675
10,400 Xilinx, Inc./(a)/.................... 858,650
17,000 Yahoo!, Inc./(a)/.................... 2,105,875
2,600 Young & Rubicam, Inc................. 148,688
------------
Total Common Stocks
(Cost $360,207,905)................................ $394,313,186
------------
<CAPTION>
Principal
Amount Description Value
<C> <S> <C>
SHORT TERM INSTRUMENTS - 3.74%
U.S. Treasury Bills/(c)/ - 3.74%
$1,410,000 5.48%, 07/13/2000/(b)/............... $ 1,407,468
292,000 5.71%, 07/27/2000.................... 290,815
1,076,000 5.78%, 08/24/2000.................... 1,066,837
9,394,000 5.88%, 10/05/2000.................... 9,253,184
3,381,000 5.81%, 10/19/2000.................... 3,322,677
------------
Total Short Term Instruments
(Cost $15,336,193)................................. 15,340,981
------------
Total Investments
(Cost $375,544,098)...................... 99.83% 409,654,167
Other Assets in Excess
of Liabilities........................... 0.17 684,195
------ ------------
Net Assets................................ 100.00% $410,338,262
====== ============
</TABLE>
-------------------------------------------
/(a)/Non-income producing security.
/(b)/Held for collateral for futures contracts.
/(c)/Rates shown represent effective yield at time of purchase.
ADR American Depository Receipt.
See Notes to Financial Statements.
-------------------------------------------------------------------------------
11
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
June 30,
2000
<S> <C>
Assets:
Investments at Value (cost $375,544,098)........................ $409,654,167
Cash............................................................ 795,556
Receivable for Investment Securities Sold....................... 32,990
Interest and Dividends Receivable............................... 299,365
Variation Margin Receivable for Futures Contracts............... 105,401
Deferred Organizational Costs and Other Assets.................. 14,680
------------
Total Assets..................................................... 410,902,159
------------
Liabilities:
Payable for Investment Securities Purchased..................... 510,332
Investment Advisory Fee Payable................................. 49,493
Administration Fee Payable...................................... 3,972
------------
Total Liabilities................................................ 563,797
------------
Net Assets....................................................... $410,338,362
============
Composition of Net Assets:
Paid-in-Capital................................................. $374,271,142
Undistributed Net Investment Income............................. 1,759,952
Accumulated Net Realized Gains on
Investment and Futures Transactions............................ 414,251
Net Unrealized Appreciation on Investments
and Futures Contracts.......................................... 33,893,017
------------
Net Assets....................................................... $410,338,362
============
Shares Outstanding ($0.001 par value per share,
unlimited number of shares of beneficial interest authorized)... 27,160,764
============
Net Asset Value, Offering and Redemption Price Per Share
(net assets divided by shares outstanding)...................... $ 15.11
============
</TABLE>
See Notes to Financial Statements.
-------------------------------------------------------------------------------
12
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
For the Six
Months Ended
June 30, 2000
<S> <C>
Investment Income:
Interest......................................................................... $ 334,281
Dividends........................................................................ 1,942,354
-----------
Total Investment Income........................................................... 2,276,635
-----------
Expenses:
Advisory Fees.................................................................... 348,650
Administration and Accounting Fees............................................... 77,109
Trustees Fees.................................................................... 43,377
Professional Fees................................................................ 41,394
Custodian Fees................................................................... 38,239
Printing Fees.................................................................... 17,496
Transfer Agent Fees.............................................................. 8,576
Amortization of Organizational Costs............................................. 2,069
Other............................................................................ 4,291
-----------
Total Expenses.................................................................... 581,201
Less Fee Waivers or Expense Reimbursements........................................ (58,432)
-----------
Total Expenses Net of Fee Waivers or Expense Reimbursements....................... 522,769
-----------
Net Investment Income............................................................. 1,753,866
-----------
Net Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net Realized Loss on Investment Transactions..................................... (136,708)
Net Realized Gain on Futures Transactions........................................ 677,401
Net Change in Unrealized Appreciation/Depreciation of Investment Transactions.... (1,240,319)
Net Change in Unrealized Appreciation/Depreciation of Futures Contracts.......... (368,784)
____________
Net Realized and Unrealized Loss on Investments and Futures Contracts............. (1,068,410)
____________
Net Increase in Net Assets from Operations........................................ $ 685,456
============
</TABLE>
See Notes to Financial Statements.
-------------------------------------------------------------------------------
13
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the
Six Months Ended For the
June 30, 2000 Year Ended
(unaudited) December 31, 1999
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income........................................... $ 1,753,866 $ 1,623,854
Net Realized Gain from Investment and Futures Transactions...... 540,693 649,895
Net Change in Unrealized Appreciation/Depreciation
on Investments and Futures Contracts......................... (1,609,103) 29,731,831
------------ ------------
Net Increase in Net Assets from Operations...................... 685,456 32,005,580
------------ ------------
Distributions to Shareholders
Net Investment Income......................................... -- (1,815,478)
Net Realized Gain on Investments.............................. -- (853,735)
------------ ------------
Total Distributions................................................ -- (2,669,213)
------------ ------------
Capital Share Transactions
Proceeds from Sales of Shares................................... 167,051,587 244,653,804
Issued to Shareholders in Reinvestment of Distributions......... -- 2,669,213
Cost of Shares Repurchased...................................... (45,930,075) (37,819,340)
------------ ------------
Net Increase in Net Assets from Capital Share Transactions......... 121,121,512 209,503,677
------------ ------------
Total Increase in Net Assets....................................... 121,806,968 238,840,044
Net Assets:
Beginning of Period............................................. 288,531,394 49,691,350
------------ ------------
End of Period................................................... $410,338,362 $288,531,394
============ ============
</TABLE>
See Notes to Financial Statements.
-------------------------------------------------------------------------------
14
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Financial Highlights
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for the periods
indicated for Deutsche VIT Equity 500 Index.
<TABLE>
<CAPTION>
Six Months For the Period
Ended June Year Ended Year Ended Oct. 1, 1997/1/
30, 2000 December December through
(unaudited) 31, 1999 31, 1998 Dec. 31, 1997
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period.......... $15.18 $12.73 $10.19 $10.00
------ ------ ------ ------
Income from Investment Operations:
Net Investment Income........................ 0.06 0.05 0.07 0.03/2/
Net Realized and Unrealized Gain (Loss) on
Investments and Futures Contacts............ (0.13) 2.55 2.84 0.16
------ ------ ------ ------
Total from Investment Operations.............. (0.07) 2.60 2.91 0.19
------ ------ ------ ------
Less Distributions:
Net Investment Income........................ -- (0.10) (0.05) --
Net Realized Gain from Investment
and Futures Transactions.................... -- (0.05) (0.32) --
------ ------ ------ ------
Total Distributions........................... -- (0.15) (0.37) --
------ ------ ------ ------
Net Asset Value, End of Period................ $15.11 $15.18 $12.73 $10.19
====== ====== ====== ======
Total Investment Return....................... (0.46)% 20.39% 28.71% 1.90%
Ratios/Supplemental Data:
Net Assets, End of Period (in 000s)........... $410,338 $288,531 $49,691 $11,760
Ratios to Average Net Assets:
Net Investment Income Including
Reimbursement/Waiver........................ 1.00%/3/ 1.16% 1.37% 1.51%/3/
Net Investment Income Excluding
Reimbursement/Waiver........................ 0.97%/3/ 1.03% 0.48% (0.99)%/3/
Operating Expenses Including
Reimbursement/Waiver........................ 0.30%/3/ 0.30% 0.30% 0.30%/3/
Operating Expenses Excluding
Reimbursement/Waiver........................ 0.33%/3/ 0.43% 1.19% 2.78%/3/
Portfolio Turnover Rate....................... 2% 2% 36% 7%
--------------------------------------------------------------------------------------------------------------
</TABLE>
/1/Commencement of operations.
/2/Based on average shares method.
/3/Annualized
See Notes to Financial Statements.
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15
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Notes to Financial Statements June 30, 2000 (Unaudited)
Note 1 -- Organization and Significant Accounting Policies
A. Organization
Deutsche Asset Management VIT Funds (the "Trust"), is an open-end management
investment company which is registered under the Investment Company Act of 1940
as amended (the "Act"). The Trust was organized as a Massachusetts business
trust on January 19, 1996. Deutsche VIT Equity 500 Index (the "Fund") is one of
the funds offered to investors by the Trust. The Fund began operations on
October 1, 1997.
B. Valuation of Securities
The Fund's investments, which are traded on a recognized stock exchange or for
which price quotations are available, are valued each business day on the basis
of market valuations furnished by an independent pricing service approved by the
Board of Trustees. Securities traded on national stock exchanges or other
domestic exchanges are valued based on the closing price of the security prior
to the time when the Fund's assets are valued. Short-term obligations with
remaining maturities of 60 days or less are valued at amortized cost. Other
short-term debt securities are valued on a mark-to-market basis until such time
as they reach a remaining maturity of 60 days, whereupon they will be valued at
amortized cost using their value on the 61st day. All other securities and other
assets are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Board of
Trustees.
C. Securities Transactions and Investment Income
Securities transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of premium and discount on investments. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
D. Futures Contracts
The Fund may enter into financial futures contracts which are contracts to buy a
standard quantity of securities at a specified price on a future date. The Fund
is required to deposit either in cash or securities an amount equal to a certain
percentage of the contract amount. Variation margin payments are made or
received by the Fund each day, dependent on the daily fluctuations in the value
of the underlying security, and are recorded for financial statement purposes as
unrealized gains or losses by the Fund. The Fund's investments in financial
futures contracts are designed to closely replicate the benchmark index used by
the Fund. Risks arise from possible illiquidity of the futures market and from
movements in security values.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
E. Federal Income Taxes
The Fund intends to qualify as a "regulated investment company" under Sub-
chapter M of the Internal Revenue Code and to distribute substantially all of
its net taxable income to shareholders. Accordingly, no provision for federal
income taxes has been made in the accompanying financial statements.
F. Expenses
The Trust accounts separately for the assets, liabilities and operations of each
of the funds. Expenses directly attributable to a fund are charged to that fund,
while the expenses which are attributable to the Trust are allocated among the
fund's based upon their relative net assets.
G. Organization Costs
Costs incurred in connection with the Funds' organization are being amortized on
a straight-line basis over five years beginning on October 1, 1997. In the
event that any of the initial shares are redeemed during such amortization
period, the redemption proceeds will be reduced for any unamortized organization
costs in the same proportion as the number of shares redeemed bears to the
number of initial shares outstanding at the time of the redemption.
H. Dividends from Net Investment Income and Distributions of Capital Gains
Dividends from net investment income and net realized gains from investment
transactions, if any, are distributed to shareholders at least annually.
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences do not require such
reclassification.
-------------------------------------------------------------------------------
16
<PAGE>
Deutsche VIT Equity 500 Index
-------------------------------------------------------------------------------
Notes to Financial Statements June 30, 2000 (Unaudited)
I. Shares of Beneficial Interest
The Fund is authorized to issue an unlimited number of shares of beneficial
interest with a par value of $0.001 per share. Transactions in shares of
beneficial interest were as follows:
Six Months Year
Ended Ended
June 30, 2000 Dec. 31, 1999
-----------------------------------------------------
Shares Shares
-----------------------------------------------------
Shares sold 11,261,513 17,638,824
Reinvestment of
Dividends -- 177,239
Shares redeemed (3,114,152) (2,706,277)
---------- ----------
Net increase 8,147,361 15,109,786
========== ==========
J. Other
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts in the financial statements.
Actual results could differ from those estimates.
Note 2 -- Fees and Transactions with Affiliates
Bankers Trust Company (the "Advisor'), an indirect wholly owned subsidiary of
Deutsche Bank AG, is the Fund's Investment Advisor. Under the Advisory Agreement
the Fund pays an advisory fee at an annual percentage rate of 0.20% of the
average daily net assets of the Fund. These fees are accrued daily and paid
monthly. The Advisor has voluntarily undertaken to waive its fee and to
reimburse the Fund for certain expenses so that the Fund's total operating
expenses will not exceed 0.30% of average daily net assets.
PFPC Inc. is the Fund's Administrator and Transfer Agent. For services rendered
as the Trust's Administrator, PFPC Inc. receives the following fees, accrued
daily, and paid monthly.
Administration Fees
-----------------------------------------------------------------
Fee % of the Trust's Average Daily
daily net assets Net Assets
-----------------------------------------------------------------
0.02% up to $2 billion
0.01% over $2 billion and up to $5 billion
0.0075% over $5 billion
PFPC Inc. also receives a $70,000 flat fee per year, per fund, paid monthly.
PFPC Inc. waived $12,500 of it's fees for the six months ended June 30, 2000.
Bankers Trust Company serves as custodian for the Fund and receives a fee for
this service.
At June 30, 2000, the Fund was a participant with other affiliated entities in a
revolving credit facility in the amount of $200,000,000, which expires April 27,
2001. A commitment fee on the average daily amount of the available commitment
is payable on a quarterly basis and apportioned among all participants based on
net assets. No amounts were drawn down or outstanding for this Fund under the
credit facility for the six months ended June 30, 2000.
Note 3 -- Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from the sale of investments, other
than short-term obligations, for the six months ended June 30, 1999, were
$122,718,053 and $6,269,771, respectively.
The aggregate gross unrealized appreciation, gross unrealized depreciation and
net unrealized appreciation on the Fund's investments, as computed on a federal
income tax basis, at June 30, 2000 were $70,547,846, $36,437,777 and
$34,110,069, respectively. The aggregate cost of investments on a federal income
tax basis at June 30, 2000 was $375,544,098.
Note 4 -- Futures Contracts
A summary of obligation under these financial instruments at June 30, 2000 is as
follows:
Type of Unrealized
Futures Expiration Contracts Position Depreciation
------- ---------- --------- -------- ------------
S&P 500 9/14/00 42 Long $(217,052)
=========
Note 5 -- Fund Name Change
On April 30, 2000, the fund changed its name from BT Insurance Funds Trust
Equity 500 Index Fund to Deutsche Asset Management Funds VIT Equity 500 Index.
-------------------------------------------------------------------------------
17
<PAGE>
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<PAGE>
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<PAGE>
For information on how to invest, shareholder account information and current
price and yield information, please contact your relationship manager or write
to us at:
Deutsche Asset Management Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
or call our toll-free number: 1-800-730-1313
This report must be preceded or accompanied by a current prospectus for the
Fund.
Deutsche Asset Management is the marketing name for the asset management
activities of Deutsche Bank AG, Deutsche Fund Management, Inc., Bankers Trust
Company, DB Alex. Brown LLC, Deutsche Asset Management, Inc. and Deutsche Asset
Management Investment Services Limited.
Deutsche VIT Equity 500 Index CUSIP #251/512/208
INSEQ500SA (06/00)
Distributed by:
Provident Distributors, Inc.
