BT INVESTMENT FUNDS
TREASURY MONEY FUND
BT INSTITUTIONAL FUNDS
INSTITUTIONAL TREASURY MONEY FUND
SUPPLEMENT TO PROSPECTUSES DATED MARCH 17, 1997
Please insert the following immediately after the first paragraph under
the sub-section entitled ``Treasury Money Portfolio'':
``When-Issued and Delayed-Delivery Securities. To secure prices deemed
advantageous at a particular time, the Portfolio may purchase securities
on a when-issued or delayed-delivery basis, in which case delivery of
the securities occurs beyond the normal settlement period; payment for
or delivery of the securities would be made at the same time as the
reciprocal delivery or payment by the other party to the transaction.
The Portfolio will enter into when-issued or delayed-delivery
transactions for the purpose of acquiring securities and not for the
purpose of leverage. When-issued securities purchased by the Portfolio
may include securities purchased on a ``when, as, and if issued'' basis
under which the issuance of the securities depends on the occurrence of
a subsequent event.
Securities purchased on a when-issued or delayed-delivery basis may
expose the Portfolio to risk because the securities may experience
fluctuations in value prior to their actual delivery. The Portfolio does
not accrue income with respect to a when-issued or delayed-delivery
security prior to its stated delivery date. Purchasing securities on a
when-issued or delayed-delivery basis can involve the additional risk
that the yield available in the market when the delivery takes place may
be higher than that obtained in the transaction itself. Upon purchasing
a security on a when-issued or delayed delivery basis, the Portfolio
will segregate with the Portfolio's custodian liquid instruments in an
amount at least equal to the when-issued or delayed-delivery
commitment.''
May 8, 1997
EDGEWOOD SERVICES, INC.
Distributor
SUPPTRMNY (5/97)
BT INVESTMENT FUNDS
CASH MANAGEMENT FUND
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 17, 1997
Please insert the following two sub-sections after the sub-section
entitled `Reverse Repurchase Agreements'' on page 2:
``When-Issued and Delayed-Delivery Securities. To secure prices deemed
advantageous at a particular time, the Cash Management Portfolio and
Treasury Money Portfolio may purchase securities on a when-issued or
delayed-delivery basis, in which case delivery of the securities occurs
beyond the normal settlement period; payment for or delivery of the
securities would be made at the same time as the reciprocal delivery or
payment by the other party to the transaction. A Portfolio will enter
into when-issued or delayed-delivery transactions for the purpose of
acquiring securities and not for the purpose of leverage. When-issued
securities purchased by a Portfolio may include securities purchased on
a ``when, as, and if issued'' basis under which the issuance of the
securities depends on the occurrence of a subsequent event.
Securities purchased on a when-issued or delayed-delivery basis may
expose a Portfolio to risk because the securities may experience
fluctuations in value prior to their actual delivery. A Portfolio does
not accrue income with respect to a when-issued or delayed-delivery
security prior to its stated delivery date. Purchasing securities on a
when-issued or delayed-delivery basis can involve the additional risk
that the yield available in the market when the delivery takes place may
be higher than that obtained in the transaction itself. Upon purchasing
a security on a when-issued or delayed-delivery basis, a Portfolio will
segregate with the Portfolio's custodian high grade liquid debt
instruments in an amount at least equal to the when-issued or delayed-
delivery commitment.
Asset-Backed Securities. The Cash Management Portfolio may also invest
in securities generally referred to as asset-backed securities, which
directly or indirectly represent a participation interest in, or are
secured by and payable from, a stream of payments generated by
particular assets such as motor vehicle or credit card receivables.
Asset-backed securities may provide periodic payments that consist of
interest and/or principal payments. Consequently, the life of an asset-
backed security varies with the prepayment and loss experience of the
underlying assets.''
May 8, 1997
EDGEWOOD SERVICES, INC.
Distributor
SUPPSAI471 (5/97)
