o BT INVESTMENT FUNDS o
CASH MANAGEMENT FUND
NY TAX FREE MONEY FUND
TAX FREE MONEY FUND
TREASURY MONEY FUND
SEMI-ANNUAL REPORT
------------------
JUNE o 1998
<PAGE>
BT Investment Funds
Table of Contents
Letter to Shareholders 3
BT Investment Funds
Statements of Assets and Liabilities 5
Statements of Operations 5
Statements of Changes in Net Assets 6
Financial Highlights 7
Notes to Financial Statements 9
BT Portfolios
Statements of Net Assets 11
Statements of Operations 24
Statements of Changes in Net Assets 25
Financial Highlights 26
Notes to Financial Statements 27
--------------------
The Funds are not insured by the FDIC and is not a deposit,
obligation of or guaranteed byBankers Trust Company. The Funds
are subject to investment risks, including possible loss of
principal amounts invested.
--------------------
2
<PAGE>
BT Investment Funds
Letter to Shareholders
We are pleased to present you with this semi-annual report for the BT Investment
Funds, providing a detailed review of the markets, the Portfolios, and our
outlook. Included are a complete financial summary of the Funds' operations and
a listing of the Portfolios' holdings.
MARKET ACTIVITY
Money markets were dominated by foreign activity rather than U.S. economic
factors or Federal Reserve Board policy in the first six months of 1998.
o The hangover effects of the Asian financial crises, which began in Korea,
Indonesia, and Thailand, spread to China and Japan. This both focused the U.S.
markets on that region and also continued to support a flight to quality and,
in turn, a U.S. Treasury rally.
o Domestically, the manufacturing sector of the U.S. economy weakened due to the
impact of the Asian turmoil. However, the service sector, which currently
constitutes approximately two-thirds of the U.S. economy, was extremely
strong. The service sector was supported by a 21 year low in unemployment, the
wealth effect of the stock market, an improving real estate market, and a low
interest rate environment. The bottom line--more disposable income for
consumers.
Overall, the money markets were rather quiet, with the yield curve reasonably
flat. A strong dollar, propelled by a deepening Asian crisis, served as a
positive backdrop for continued low inflation. A combination of low inflation
plus first quarter GDP growth of over 5% supported the markets' perception that
the Federal Reserve Board was on hold. It was. In turn, interest rates remained
relatively stable throughout the period, and price volatility within the money
markets was at an all-time low.
The municipal markets had a stable semi-annual period, though affected by
macroeconomic trends with mixed results. Tax-exempt securities saw strong,
positive credit trends, with several municipalities either upgraded or put on
positive credit watch by the independent rating agencies during these six
months. Revenues were stronger and tax coffers more full, but that meant
municipalities tended to issue less short-term debt, thereby putting pressure on
short-term supply. Demand, as seen through strong cash inflow, remained high. On
the other hand, municipal securities lagged U.S. Treasuries in performance. The
flight to quality by foreign investors led to a rally in Treasuries that
overshadowed the asset growth within the municipal market.
Cash Management Fund
We maintained a neutral, close-to-the benchmark weighted average maturity
position throughout most of the semi-annual period. This strategy was based on
the uncertainty surrounding the impact of the Asian financial turmoil on the
U.S. financial markets as well as on the Federal Reserve Board's decision to
keep interest rates on hold. Also, the flat yield curve gave us few
opportunities to extend maturities to increase yield. Instead, we sought to add
value by increasing the Fund's holdings in floating rate securities, which
proved to be effective in producing competitive Fund returns.
NY Tax Free Money Fund(1)
The Fund began the semi-annual period with an average maturity of 48 days. This
was slightly longer than the benchmark, given that January is a month in which
large amounts of monies traditionally enter the short-term tax-exempt market as
a result of coupon payments and maturing issues. By the beginning of March, we
had let the Fund's average maturity roll down the curve to a slightly short 40
days. We extended the Fund's average maturity again to 48 days by the end of
March to take advantage of some higher yields available on the longer end of the
yield curve.
As tax time approaches, April is traditionally a month when withdrawals from
money market funds are par for the course. Usually we would shorten the Fund's
average maturity reflecting an anticipated need for liquidity. However, this
year, while tax time had some impact, it was less than in previous years due to
record high assets. Thus, we were able to stay long, capturing some higher
yields.
At the end of May, the Long Island Power Authority (LIPA) issued a record high
$1.5 billion in debt, both in variable rate notes and in commercial paper. These
securities were attractively priced for the general markets and especially for
New York, and thus we purchased some of these securities for the Fund's
Portfolio. On June 30, 1998, the Fund's average maturity stood at 55 days. The
slightly long position was taken to benefit from the large percentage of high
quality municipal issues that usually becomes available at the end of June and
early July. This seasonal supply traditionally offers investors attractively
priced longer-term issues.
<TABLE>
<CAPTION>
Annualized 7 Day Annualized 7 Day Annualized 7 Day
Periods ended June 30, 1998 Current Yield Effective Yield Effective Taxable Equivalent
- -------------------------------------------------------------------------------------------------------------
<S><C>
BT Investment Cash Management Fund* 4.91% 5.03%
IBC First Tier Money Funds Average 4.94% 5.06%
- -------------------------------------------------------------------------------------------------------------
BT Investment NY Tax Free Money Fund* 2.82% 2.86% 5.40%
IBC State Specific Money Funds Average 2.97% 3.02%
- -------------------------------------------------------------------------------------------------------------
BT Investment Tax Free Money Fund* 2.90% 2.94% 4.87%
IBC Tax Free Money Funds Average 3.03% 3.08%
- -------------------------------------------------------------------------------------------------------------
BT Investment Treasury Money Fund* 4.81% 4.93%
IBC U.S. Treasury and Repo Money Funds Average 4.89% 5.00%
</TABLE>
3
<PAGE>
BT Investment Funds
Letter to Shareholders
Tax Free Money Fund(2)
As with the NY Tax Free Money Fund, we started the semi-annual period with this
Fund's average maturity slightly longer than the benchmark--in this case, at 51
days--given typical January supply/demand pressures. By the beginning of March,
we had let the Fund's average maturity roll down the curve to a neutral average
maturity of 44 days. We extended the Fund's average maturity again to 51 days by
the end of March to take advantage of some higher yields available on the longer
end of the yield curve. We shortened again in April to 45 days as tax time
approached, a period when withdrawals from money market funds are par for the
course.
The Long Island Power Authority (LIPA)'s issuance of $1.5 billion in debt
securities in May was attractively priced for the general markets as well as for
New York due to the record size of the issue. Thus we purchased some of these
securities for the Fund's Portfolio. On June 30, 1998, the Fund's average
maturity stood at a relatively neutral 43 days. Approximately 80-85% of
municipalities begin their fiscal year in July, and they come to market with
their short-term borrowing needs for the entire year at this one time. This
dramatically increases supply, enabling us to lock in higher yields chosen from
a large number of issues. Another reason we stayed neutral to short is that,
given the flat yield curve, we were able to find value in the middle range of 3
to 6 month securities instead of having to reach for the one year securities for
higher yields.
Treasury Money Fund
The Fund followed the same general strategy as the Cash Management Fund.
Specifically, the Fund maintained a neutral, close-to-the benchmark weighted
average maturity position throughout most of the semi-annual period. The
uncertainty surrounding the Asian financial crisis caused a "flight to quality"
trade, whereby investors bought a large amount of U.S. Treasury securities. This
demand factor, combined with the smaller issuance of securities by the Treasury,
resulted in a very expensive Treasury market. Thus, we sought to add value by
investing in term repurchase agreements, whose yields were comparatively higher
during this period. This allocation strategy proved to be effective in producing
competitive Fund returns.
MANAGERS' OUTLOOK
We believe the money markets should remain fairly positive throughout the second
half of the year for several reasons:
o The Asian crisis continues to loom and the U.S. dollar remains strong--a
positive backdrop for inflation to stay low.
o U.S. economic growth remains solid, the labor market tight, interest rates
stable and volatility low.
o While the Federal Reserve Board reinstituted its tightening bias earlier in
the year, it still seems likely that it will be on hold for a while.
o Japan is facing serious financial troubles, which could impact China and Latin
America in turn. Thus, we expect a continued flight to quality, with U.S.
Treasuries the major beneficiary.
In both the taxable and municipal funds, we intend to maintain a relatively
neutral average maturity for the near term. At the same time, we will look to
take advantage of any spike in yields or any issue-specific attractive value
opportunities to extend duration, given our view of slower but still positive
economic growth in the future.
We will, of course, continue to closely observe economic conditions and how they
affect the financial markets, as we seek to provide high current income
consistent with liquidity and capital preservation.
/s/ Darlene M. Rasel
____________________
Darlene M. Rasel
Portfolio Manager of the Cash Management Portfolio
and the Treasury Money Portfolio
June 30, 1998
/s/ Susan Bradford
__________________
Susan Bradford
Portfolio Manager of the Tax Free Money Portfolio and the
NY Tax Free Money Portfolio
June 30, 1998
- ----------
* Past performance is not indicative of future results. Yields will vary.
Yields quoted for money market funds most closely reflect the fund's current
earnings. Although money market funds seek to maintain a share value of
$1.00, there is no guarantee that they will be able to do so. Mutual funds
are not bank deposits or obligations of any bank, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal.
(1) Income may be subject to the federal alternative minimum tax.
(2) lncome may be subject to the federal alternative minimum tax and state and
local taxes.
4
<PAGE>
BT Investment Funds
Statements of Assets and Liabilities June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Cash NY Tax Tax Free Treasury
Management Free Money Money Money
------------ ------------ ------------ ------------
<S><C>
Assets
Investment in Portfolio, at Value(1) $126,296,024 $ 71,639,799 $158,119,151 $345,512,449
Prepaid Expenses 13,224 3,670 10,105 3,104,667
------------ ------------ ------------ ------------
Total Assets 126,309,248 71,643,469 158,129,256 348,617,116
------------ ------------ ------------ ------------
Liabilities
Due to Bankers Trust, net 51,418 28,806 76,384 161,174
Dividends Payable 524,619 179,419 410,149 1,592,780
Accrued Expenses 12,680 12,680 14,101 35,847
------------ ------------ ------------ ------------
Total Liabilities 588,717 220,905 500,634 1,789,801
------------ ------------ ------------ ------------
Net Assets $125,720,531 $ 71,422,564 $157,628,622 $346,827,315
============ ============ ============ ============
Shares Outstanding ($0.001 Par Value Per Share,
Unlimited Number of Shares of Beneficial Interest
Authorized) 125,800,099 71,456,072 157,683,205 346,723,727
============ ============ ============ ============
Net Asset Value, Offering and Redemption Price Per Share
(net assets divided by shares outstanding) $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============
Composition of Net Assets
Paid-in Capital $125,800,099 $ 71,456,072 $157,683,205 $346,723,727
Accumulated Net Realized Gain (Loss) from
Investment Transactions (79,568) (33,508) (54,583) 103,588
------------ ------------ ------------ ------------
Net Assets, June 30, 1998 $125,720,531 $ 71,422,564 $157,628,622 $346,827,315
============ ============ ============ ============
</TABLE>
- ----------
(1) Allocated from Cash Management Portfolio, NYTax Free Money Portfolio, Tax
Free Money Portfolio and Treasury Money Portfolio, respectively.
Statements of Operations For the six months ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Cash NY Tax Tax Free Treasury
Management Free Money Money Money
------------ ------------ ------------ ------------
<S><C>
Investment Income
Income, net(2) $ 4,161,690 $ 1,442,330 $ 2,607,101 $10,967,747
------------ ------------ ------------ ------------
Expenses
Administration and Services Fees 417,767 240,979 420,297 1,127,708
Printing and Shareholder Reports 7,000 2,761 4,936 7,000
Registration Fees 6,118 1,090 5,039 26,145
Professional Fees 7,063 8,489 4,319 8,585
Trustees Fees 1,509 1,627 1,412 1,895
Miscellaneous 7,000 5,195 3,043 9,979
------------ ------------ ------------ ------------
Total Expenses 446,457 260,141 439,046 1,181,312
Less: Expenses Absorbed by Bankers Trust (13,498) (19,162) (18,359) (49,218)
------------ ------------ ------------ ------------
Net Expenses 432,959 240,979 420,687 1,132,094
------------ ------------ ------------ ------------
Net Investment Income 3,728,731 1,201,351 2,186,414 9,835,653
------------ ------------ ------------ ------------
Realized Gain (Loss) from Investment Transactions 2,598 (472) 433 22,140
------------ ------------ ------------ ------------
Net Increase in Net Assets from Operations $ 3,731,329 $ 1,200,879 $ 2,186,847 $ 9,857,793
============ ============ ============ ============
</TABLE>
- ----------
(2) Net income allocated from Cash Management Portfolio, NY Tax Free Money
Portfolio, Tax Free Money Portfolio and Treasury Money Portfolio,
respectively.
See Notes to Financial Statements on Page 9
5
<PAGE>
BT Investment Funds
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Cash Management NY Tax Free Money
----------------------------------- -----------------------------------
For the six For the For the six For the
months ended year ended months ended year ended
June 30, 1998(+) December 31, 1997 June 30, 1998(+) December 31, 1997
---------------- ----------------- ---------------- -----------------
<S><C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income $ 3,728,731 $ 6,360,066 $ 1,201,351 $ 2,653,696
Net Realized Gain (Loss) from Investment
Transactions 2,598 (1,301) (472) (1,774)
--------------- --------------- --------------- ---------------
Net Increase in Net Assets from Operations 3,731,329 6,358,765 1,200,879 2,651,922
--------------- --------------- --------------- ---------------
Distributions to Shareholders
Net Investment Income (3,728,731) (6,360,066) (1,201,351) (2,653,696)
--------------- --------------- --------------- ---------------
Capital Transactions in Shares of Beneficial
Interest (at Net Asset Value of $1.00
per share)
Net Proceeds from Shares Sold 1,022,874,483 2,040,115,705 221,533,668 438,649,915
Dividends Reinvested 1,512,767 2,806,055 271,088 754,129
Value of Shares Redeemed (1,037,092,711) (2,023,465,730) (235,746,103) (429,895,656)
--------------- --------------- --------------- ---------------
Net Increase (Decrease) from Capital
Transactions in Shares of Beneficial
Interest (12,705,461) 19,456,030 (13,941,347) 9,508,388
--------------- --------------- --------------- ---------------
Total Increase (Decrease) in Net Assets (12,702,863) 19,454,729 (13,941,819) 9,506,614
Net Assets
Beginning of Period 138,423,394 118,968,665 85,364,383 75,857,769
--------------- --------------- --------------- ---------------
End of Period $ 125,720,531 $ 138,423,394 $ 71,422,564 $ 85,364,383
=============== =============== =============== ===============
</TABLE>
- ----------
(+) Unaudited
<PAGE>
<TABLE>
<CAPTION>
Tax Free Money Treasury Money
----------------------------------- -----------------------------------
For the six For the For the six For the
months ended year ended months ended year ended
June 30, 1998(+) December 31, 1997 June 30, 1998(+) December 31, 1997
---------------- ----------------- ---------------- -----------------
<S><C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income $ 2,186,414 $ 3,970,172 $ 9,835,653 $ 18,996,773
Net Realized Gain (Loss) from Investment
Transactions 433 (5,713) 22,140 (169)
--------------- --------------- --------------- ---------------
Net Increase in Net Assets from Operations 2,186,847 3,964,459 9,857,793 18,996,604
--------------- --------------- --------------- ---------------
Distributions to Shareholders
Net Investment Income (2,186,414) (3,970,172) (9,835,653) (18,996,773)
--------------- --------------- --------------- ---------------
Capital Transactions in Shares of Beneficial
Interest (at Net Asset Value of $1.00
per share)
Net Proceeds from Shares Sold 624,632,615 957,584,448 4,479,405,130 7,207,567,766
Dividends Reinvested 474,818 1,156,319 6,630,567 14,463,357
Value of Shares Redeemed (617,961,828) (926,224,651) (4,407,504,132) (7,508,473,235)
--------------- --------------- --------------- ---------------
Net Increase (Decrease) from Capital
Transactions in Shares of Beneficial
Interest 7,145,605 32,516,116 78,531,565 (286,442,112)
--------------- --------------- --------------- ---------------
Total Increase (Decrease) in Net Assets 7,146,038 32,510,403 78,553,705 (286,442,281)
Net Assets
Beginning of Period 150,482,584 117,972,181 268,273,610 554,715,891
--------------- --------------- --------------- ---------------
End of Period $ 157,628,622 $ 150,482,584 $ 346,827,315 $ 268,273,610
=============== =============== =============== ===============
</TABLE>
- ----------
(+) Unaudited
See Notes to Financial Statements on Page 9
6
<PAGE>
BT Investment Funds
Financial Highlights
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for each of the
periods presented for each of the Funds.
<TABLE>
<CAPTION>
For the
six months Cash Management
ended June 30 For the years ended December 31,
1998(3) 1997 1996 1995 1994 1993
------------- -------- -------- -------- --------- --------
<S><C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------
Income from Investment Operations
Net Investment Income 0.02 0.05 0.05 0.05 0.04 0.03
Net Realized Gain (Loss) from Investment
Transactions (0.00)(1) (0.00)(1) 0.00(1) 0.00(1) (0.01) 0.00(1)
------- ------- ------- ------- ------- ------
Total from Investment Operations 0.02 0.05 0.05 0.05 0.03 0.03
------- ------- ------- ------- ------- ------
Contributions of Capital -- -- 0.00(1) -- 0.01 --
------- ------- ------- ------- ------- ------
Distributions to Shareholders
Net Investment Income (0.02) (0.05) (0.05) (0.05) (0.04) (0.03)
Net Realized Gain from Investment Transactions -- -- -- -- -- (0.00)(1)
------- ------- ------- ------- ------- ------
Total Distributions (0.02) (0.05) (0.05) (0.05) (0.04) (0.03)
------- ------- ------- ------- ------- ------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======
Total Investment Return 2.46% 4.98% 4.82%(2) 5.35% 3.67%(2) 2.54%
Supplemental Data and Ratios:
Net Assets, End of Period $125,721 $138,423 $118,969 $135,998 $159,172 $76,578
Ratios to Average Net Assets:
Net Investment Income 4.90%(4) 4.88% 4.72% 5.22% 3.70% 2.51%
Expenses, Including Expenses of the
Cash Management Portfolio 0.75%(4) 0.75% 0.75% 0.74% 0.73% 0.75%
Decrease Reflected in Above Expense Ratio Due
to Absorption of Expenses by Bankers Trust 0.02%(4) 0.03% 0.03% 0.02% 0.08% 0.05%
</TABLE>
- ----------
(1) Less than $0.01 per share.
(2) Increased by approximately 0.08% and 0.96% due to Contributions of Capital
for the years ended December 31, 1996 and 1994, respectively.
(3) Unaudited
(4) Annualized
<TABLE>
<CAPTION>
For the
six months NY Tax Free Money
ended June 30 For the years ended December 31,
1998(2) 1997 1996 1995 1994 1993
------------- -------- -------- -------- --------- --------
<S><C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income from Investment Operations
Net Investment Income 0.01 0.03 0.03 0.03 0.02 0.02
Net Realized Loss from Investment
Transactions (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1)
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.01 0.03 0.03 0.03 0.02 0.02
------- ------- ------- ------- ------- -------
Distributions to Shareholders
Net Investment Income (0.01) (0.03) (0.03) (0.03) (0.02) (0.02)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Investment Return 1.37% 2.86% 2.68% 3.12% 2.11% 1.68%
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $ 71,423 $ 85,364 $ 75,858 $ 70,765 $ 79,101 $103,938
Ratios to Average Net Assets:
Net Investment Income 1.36%(3) 2.83% 2.64% 3.07% 2.05% 1.66%
Expenses, Including Expenses of the
NY Tax Free Money Portfolio 0.75%(3) 0.75% 0.75% 0.75% 0.75% 0.75%
Decrease Reflected in Above Expense Ratio Due
to Absorption of Expenses by Bankers Trust 0.04%(3) 0.06% 0.09% 0.07% 0.08% 0.06%
</TABLE>
- ----------
(1) Less than $0.01 per share.
(2) Unaudited
(3) Annualized
See Notes to Financial Statements on Page 9
7
<PAGE>
BT Investment Funds
Financial Highlights (continued)
<TABLE>
<CAPTION>
For the
six months Tax Free Money
ended June 30 For the years ended December 31,
1998(2) 1997 1996 1995 1994 1993
------------- -------- -------- -------- --------- --------
<S><C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income from Investment Operations
Net Investment Income 0.01 0.03 0.03 0.03 0.02 0.02
Net Realized Gain (Loss) from Investment
Transactions 0.00(1) (0.00)(1) (0.00)(1) (0.00)(1) 0.00(1) 0.00(1)
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.01 0.03 0.03 0.03 0.02 0.02
------- ------- ------- ------- ------- -------
Distributions to Shareholders
Net Investment Income (0.01) (0.03) (0.03) (0.03) (0.02) (0.02)
Net Realized Gain from Investment Transactions -- -- -- -- (0.00)(1) --
------- ------- ------- ------- ------- -------
Total Distributions (0.01) (0.03) (0.03) (0.03) (0.02) (0.02)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Investment Return 1.40% 2.94% 2.84% 3.34% 2.27% 1.97%
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $157,629 $150,483 $117,972 $119,393 $110,043 $111,285
Ratios to Average Net Assets:
Net Investment Income 1.40%(3) 2.90% 2.80% 3.28% 2.21% 1.95%
Expenses, Including Expenses of the
Tax Free Money Portfolio 0.75%(3) 0.75% 0.75% 0.75% 0.75% 0.75%
Decrease Reflected in Above Expense Ratio Due
to Absorption of Expenses by Bankers Trust 0.01%(3) 0.05% 0.07% 0.07% 0.08% 0.05%
</TABLE>
- ---------
(1) Less than $0.01 per share.
(2) Unaudited
(3) Annualized
<TABLE>
<CAPTION>
For the
six months Treasury Money
ended June 30 For the years ended December 31,
1998(2) 1997 1996 1995 1994 1993
------------- -------- -------- -------- --------- --------
<S><C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income from Investment Operations
Net Investment Income 0.02 0.05 0.05 0.05 0.03 0.02
Net Realized Gain (Loss) from Investment
Transactions (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1)
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.02 0.05 0.05 0.05 0.03 0.02
------- ------- ------- ------- ------- -------
Distributions to Shareholders
Net Investment Income (0.02) (0.05) (0.05) (0.05) (0.03) (0.02)
Net Realized Gain from Investment Transactions -- -- -- (0.00)(1) -- (0.00)(1)
------- ------- ------- ------- ------- -------
Total Distributions (0.02) (0.05) (0.05) (0.05) (0.03) (0.02)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Investment Return 2.41% 4.86% 4.71% 5.19% 3.40% 2.43%
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $346,827 $268,274 $554,716 $615,084 $696,915 $643,145
Ratios to Average Net Assets:
Net Investment Income 2.38%(3) 4.74% 4.61% 5.06% 3.36% 2.39%
Expenses, Including Expenses of the
Treasury Money Portfolio 0.75%(3) 0.75% 0.75% 0.75% 0.75% 0.75%
Decrease Reflected in Above Expense Ratio Due
to Absorption of Expenses by Bankers Trust 0.04%(3) 0.02% 0.01% 0.02% 0.02% 0.01%
</TABLE>
- ----------
(1) Less than $0.01 per share.
(2) Unaudited
(3) Annualized
See Notes to Financial Statements on Page 9
8
<PAGE>
BT Investment Funds
Notes to Financial Statements (unaudited)
Note 1--Organization and Significant Accounting Policies
A. Organization
BT Investment Funds (the "Trust") is registered under the Investment Company Act
of 1940 (the "Act"), as amended, as an open-end management investment company.
The Trust was organized on July 21, 1986, as a business trust under the laws of
the Commonwealth of Massachusetts. The Cash Management Fund, NY Tax Free Money
Fund, Tax Free Money Fund and Treasury Money Fund (each a "Fund", and
collectively, the "Funds") are offered to investors by the Trust. The Funds
commenced operations, began offering shares of beneficial interest and invested
directly in securities on the following dates:
Commencement
of Operations & Direct Investment
Beneficial Shares in Securities
Fund Offering through
- -------------------- ------------------ ------------------
Cash Management October 5, 1988 July 22, 1990
NY Tax Free Money September 27, 1988 February 18, 1991
Tax Free Money June 10, 1987 February 18, 1991
Treasury Money November 1, 1988 July 22, 1990
Subsequent to the direct investment in securities date, the Funds began
investing substantially all of their investable assets in the following
respective Portfolios: Cash Management Fund in the Cash Management Portfolio, NY
Tax Free Money Fund in the NY Tax Free Money Portfolio, Tax Free Money Fund in
the Tax Free Portfolio, and Treasury Money Fund in the Treasury Money Portfolio
(each a "Portfolio" and collectively, the "Portfolios"). The Portfolios are
open-end management investment companies registered under the Act. The Funds
seek to achieve their investment objectives by investing all of their investable
assets in the respective Portfolios. The value of such investment in the
Portfolios reflects each Fund's proportionate interest in the net assets of the
respective Portfolio. At June 30, 1998, Cash Management Fund's investment was
approximately 3% of the Portfolio, Treasury Money Fund's investment was
approximately 17% of the Portfolio, and NY Tax Free Money Fund's and Tax Free
Money Fund's investments were approximately 100% of their respective Portfolio.
The financial statements of each of the Portfolios, including the Statements of
Net Assets, are contained elsewhere in this report.
B. Investment Income
Each of the Funds earns income, net of expenses, daily on its investment in the
respective Portfolio. All of the net investment income and realized and
unrealized gains and losses from the security transactions of each Portfolio are
allocated pro rata among the investors in the Portfolio at the time of such
determination.
C. Dividends
It is each Fund's policy to declare dividends daily and pay monthly to
shareholders from net investment income. Dividends payable to shareholders are
recorded by each Fund on the ex-dividend date. Distributions of net realized
short-term and long-term capital gains, if any, earned by each Fund will be made
annually.
D. Federal Income Taxes
It is each Fund's policy to comply with the requirements of the Internal Revenue
Code and distribute its income to shareholders. Therefore, no federal income tax
provision is required.
E. Other
The Trust accounts separately for the assets, liabilities and operations of each
of the Funds. Expenses directly attributable to each Fund are charged to that
Fund, while expenses which are attributable to all of the Trust's funds are
allocated among them.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts in the financial statements. Actual results could differ
from those estimates.
Note 2--Fees and Transactions with Affiliates
Each Fund has entered into an Administration and Services Agreement with Bankers
Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to each of the Fund's in return for a fee computed daily
and paid monthly at an annual rate of each Fund's average daily net assets. The
following provides a table of annual rates and aggregate fees for each of the
Funds for the six months ended June 30, 1998.
Fund Annual Rate Aggregated Fees
- -------------------- ----------- ---------------
Cash Management .55% $ 417,767
NY Tax Free Money .55% 240,979
Tax Free Money .55% 420,297
Treasury Money .55% 1,127,708
On September 30, 1996, the Trust entered into a Distribution Agreement with
Edgewood Services, Inc. ("Edgewood"). Under the Distribution Agreement with the
Trust pursuant to Rule 12b-1 of the 1940 Act, Edgewood, may seek reimbursement
at an annual rate not exceeding .20% of each Fund's average daily net assets,
for expenses incurred in connection with any activities primarily intended to
result in the sale of each Fund's shares. For the six months ended June 30,
1998, there were no reimbursable expenses incurred under this agreement. The
Funds do not intend to charge 12b-1 fees in the future.
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of each Fund, to the extent necessary, to limit all expenses as a
percentage of each Fund's average daily net assets as follows:
Waiver and
Reimbursement
Fund Annual Rate(1) Annual Rate(2) Amount
- ------------------ -------------- -------------- -------------
Cash Management .57% .75% $ 13,498
NY Tax Free Money .55% .75% 19,162
Tax Free Money .55% .75% 18,359
Treasury Money .55% .75% 49,218
- ----------
(1) Excluding Expenses of the Portfolio.
(2) Including Expenses of the Portfolio.
9
<PAGE>
BT Investment Funds
Notes to Financial Statements (continued) (unaudited)
Certain officers of the Funds are also directors, officers and/or employees of
Edgewood. None of the officers so affiliated received compensation for services
as officers of the Funds.
Effective August 11, 1998, ICC Distributors, Inc. will replace Edgewood as
distributor of the Trust.
The BT Investment Funds are a participant with other affiliated entities in a
revolving credit facility ("the revolver") and a discretionary demand line of
credit facility ("collectively the credit facilities") in the amounts of
$50,000,000 and $100,000,000, respectively. A commitment fee of .07% per annum
on the average daily amount of the available commitment is payable on a
quarterly basis and apportioned equally among all participants. Amounts borrowed
under the credit facilities will bear interest at a rate per annum equal to the
Federal Funds Rate plus .45%. No amounts were drawn down or outstanding under
the credit facilities as of and for the period ended June 30, 1998.
In 1994, the Cash Management Portfolio sold certain structured notes carried at
par to an unrelated third party financial institution at par plus accrued
interest pursuant to a put agreement and that third party financial institution
immediately resold such security to Bankers Trust New York Corporation, the
parent of the Advisor, at the same price, also pursuant to a put agreement. As a
result of these transactions the Cash Management Fund's Financial Highlights for
the year ended December 31, 1994 reflects its pro rata share of the Portfolio's
realized loss on the sale of these securities and a capital contribution in the
amount of $1,299,990. In 1996, Bankers Trust contributed capital in the amount
of $110,287 to reimburse the Cash Management Fund for capital losses incurred in
prior years.
Note 3--Capital Loss Carryforwards
At June 30, 1998, accumulated net realized capital loss carry forwards available
as a reduction against future net realized capital gains aggregate as follows:
<TABLE>
<CAPTION>
Capital Loss Carryforward
Net Realized Expiration Year
Capital Loss -----------------------------------------------
Fund Carryforward 2000 2001 2002 2003 2004 2005
- --------------- ------------ ---- ---- ---- ---- ---- ----
<S><C>
Cash Management $82,185 $80,884 $1,301
NY Tax Free Money $19,390 $10,340 $739 $ 2,075 $ 1,746 $2,716 $1,774
Tax Free Money $52,147 $12,896 $25,044 $8,495 $5,712
</TABLE>
10
<PAGE>
Cash Management Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
Principal
Amount Description Value
------ ----------- -----
CERTIFICATES OF DEPOSIT - 1.23%
NationsBank Corp.
$15,000,000 5.58%, 9/8/98 $ 15,000,000
45,000,000 5.58%, 8/7/98 45,000,438
------------
Total Certificates of Deposit
(Amortized Cost $60,000,438) 60,000,438
------------
COMMERCIAL PAPER - 48.08%*
7,000,000 Alcatel Alsthom,
5.52%, 8/20/98 6,946,333
Asset Securitization:
10,000,000 5.53%, 8/25/98 9,915,514
31,000,000 5.53%, 8/28/98 30,723,807
32,000,000 5.54%, 9/2/98 31,689,760
15,000,000 5.54%, 9/22/98 14,808,408
Associates Corp.:
30,000,000 5.52%, 8/17/98 29,783,800
39,400,000 5.51%, 8/21/98 39,092,450
35,000,000 5.51%, 8/17/98 34,748,224
14,000,000 BBL North America,
5.53%, 8/25/98 13,881,719
3,000,000 British Gas Capital,
5.5%, 8/24/98 2,975,250
CAFCO:
17,000,000 5.5%, 8/12/98 16,890,917
21,500,000 5.52%, 9/25/98 21,216,487
15,000,000 5.52%, 9/9/98 14,839,000
35,000,000 5.52%, 8/14/98 34,763,867
15,000,000 5.61%, 7/30/98 14,932,213
60,000,000 5.49%, 7/10/98 59,917,650
10,000,000 5.55%, 8/20/98 9,922,917
4,700,000 Caterpillar Financial,
5.48%, 12/7/98 4,586,244
30,000,000 CITGroup,
5.51%, 9/22/98 29,618,892
Commonwealth Bank of Australia:
25,000,000 5.49%, 11/23/98 24,447,188
25,000,000 5.5%, 8/5/98 24,866,319
Credit Suisse:
13,000,000 5.5%, 8/10/98 12,920,556
13,000,000 5.475%, 7/16/98 12,970,344
10,000,000 5.5%, 7/10/98 9,986,250
Principal
Amount Description Value
------ ----------- -----
Daimler Benz:
$27,975,000 5.5%, 9/11/98 $ 27,667,275
30,000,000 5.5%, 7/15/98 29,935,833
10,000,000 5.5%, 9/25/98 9,868,611
Delaware Funding Corp.:
17,667,000 5.53%, 7/8/98 17,648,003
20,000,000 5.58%, 7/23/98 19,931,800
34,379,000 5.61%, 7/30/98 34,223,636
Deutsche Bank:
10,800,000 5.51%, 7/23/98 10,763,634
60,000,000 5.49%, 7/15/98 59,871,900
Diageo Capital:
40,000,000 5.53%, 7/6/98 39,969,278
15,000,000 5.51%, 9/29/98 14,793,375
32,000,000 5.51%, 7/15/98 31,931,431
17,000,000 5.5%, 9/14/98 16,805,208
Eksportfinans:
19,285,000 5.65%, 7/14/98 19,245,653
15,600,000 5.52%, 7/27/98 15,537,808
11,000,000 5.54%, 8/10/98 10,932,289
Ford Motor Credit:
33,000,000 5.48%, 7/8/98 32,964,837
20,000,000 5.52%, 7/17/98 19,950,933
55,000,000 5.52%, 7/24/98 54,806,033
87,000,000 5.47%, 7/10/98 86,881,028
General Electric Capital Corp.:
20,000,000 5.5%, 10/7/98 19,700,556
25,000,000 5.49%, 11/20/98 24,458,625
18,000,000 5.5%, 10/8/98 17,727,750
17,000,000 5.51%, 9/11/98 16,812,660
25,000,000 5.43%, 9/4/98 24,754,896
7,000,000 5.52%, 8/17/98 6,949,553
13,000,000 5.51%, 7/24/98 12,954,236
21,000,000 5.5%, 10/19/98 20,647,083
30,000,000 5.49%, 7/8/98 29,967,975
10,000,000 General Electric Co.,
5.51%, 8/12/98 9,935,717
13,000,000 General Motors Accept. Corp.,
5.51%, 8/24/98 12,892,555
10,000,000 Generale Bank,
5.49%, 12/3/98 9,763,625
See Notes to Financial Statements on Page 27
11
<PAGE>
Cash Management Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
Principal
Amount Description Value
------ ----------- -----
Goldman Sachs:
$35,000,000 5.52%, 8/10/98 $ 34,785,333
35,000,000 5.5%, 10/14/98 34,438,542
30,000,000 5.52%, 8/26/98 29,742,400
30,000,000 5.52%, 8/28/98 29,733,200
2,500,000 Hitachi America,
5.54%, 7/21/98 2,492,306
8,000,000 J.P. Morgan,
5.5%, 11/10/98 7,838,667
10,000,000 Manitoba Hydro Electric,
5.506%, 8/27/98 9,912,822
Merrill Lynch & Co.:
23,000,000 5.52%, 10/16/98 22,622,647
20,000,000 5.52%, 7/15/98 19,957,067
32,000,000 5.5%, 7/27/98 31,872,889
10,500,000 5.51%, 8/3/98 10,446,966
23,000,000 5.53%, 9/11/98 22,745,620
Metropolitan Life:
10,908,000 5.53%, 9/10/98 10,789,033
35,884,000 5.54%, 9/9/98 35,497,450
Monsanto Co.:
15,000,000 5.505%, 9/18/98 14,818,794
15,000,000 5.51%, 9/24/98 14,804,854
Morgan Stanley Group Inc.:
13,000,000 5.5%, 7/10/98 12,982,120
100,000,000 6.25%, 7/1/98 100,000,000
24,000,000 5.53%, 8/12/98 23,845,160
40,000,000 5.52%, 8/27/98 39,650,400
18,500,000 National Australia Funding,
5.5%, 8/3/98 18,406,729
28,000,000 National Rural Utility Cooperative
Financial Corp.,
5.5%, 9/25/98 27,632,111
40,000,000 Norwest,
5.55%, 8/14/98 39,728,667
Panasonic Finance:
15,000,000 5.51%, 10/20/98 14,745,163
5,000,000 5.52%, 11/3/98 4,904,167
Paribas Finance,
20,000,000 5.51%, 7/21/98 19,938,778
Principal
Amount Description Value
------ ----------- -----
Province Of Quebec:
$11,000,000 5.5%, 10/16/98 $ 10,820,181
24,500,000 5.5%, 11/9/98 24,009,660
20,000,000 5.52%, 10/27/98 19,638,133
2,400,000 5.52%, 10/15/98 2,360,992
10,000,000 5.505%, 11/5/98 9,805,796
Receivables Capital Corp.:
30,000,000 5.53%, 8/14/98 29,797,233
12,239,000 5.53%, 7/17/98 12,208,919
50,000,000 5.53%, 8/26/98 49,569,889
12,949,000 5.55%, 8/21/98 12,847,188
10,000,000 5.53%, 8/3/98 9,949,308
15,000,000 5.59%, 7/29/98 14,934,783
20,000,000 5.57%, 7/27/98 19,919,544
10,000,000 5.531%, 7/17/98 9,975,418
13,000,000 5.61%, 7/10/98 12,981,768
15,000,000 5.57%, 7/23/98 14,948,942
Smith Barney Shearson:
20,000,000 5.52%, 10/7/98 19,699,467
20,000,000 5.355%, 7/8/98 19,979,175
25,000,000 5.5%, 7/10/98 24,965,625
15,000,000 5.4%, 8/7/98 14,916,750
35,000,000 5.49%, 7/21/98 34,893,250
19,000,000 5.54%, 8/20/98 18,853,806
14,000,000 5.53%, 9/15/98 13,836,558
22,000,000 5.4%, 8/10/98 21,868,000
10,000,000 Svenska Handelsbanken,
5.51%, 9/10/98 9,891,331
8,000,000 Westpac Capitol Corp.,
5.49%, 10/1/98 7,887,760
--------------
Total Commercial Paper
(Amortized Cost $2,341,629,266) 2,341,629,266
--------------
EURODOLLAR CERTIFICATES OF
DEPOSIT - 13.50%
Abbey National:
15,000,000 5.59%, 9/8/98 14,999,951
20,000,000 5.58%, 8/21/98 19,999,831
40,000,000 5.55%, 7/14/98 40,000,000
50,000,000 5.55%, 7/9/98 50,000,000
30,000,000 5.59%, 8/14/98 30,000,000
50,000,000 Bank Of Scotland,
5.59%, 9/25/98 50,000,000
Bank Of Tokyo-Mitsubishi,
25,000,000 5.7%, 7/6/98 25,000,000
See Notes to Financial Statements on Page 27
12
<PAGE>
Cash Management Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
Principal
Amount Description Value
------ ----------- -----
$19,000,000 Banque Bruxelles,
5.59%, 8/24/98 $ 18,999,874
15,000,000 Banque National de Paris,
5.61%, 7/31/98 15,000,306
39,000,000 Barclays Bank,
5.57%, 7/24/98 38,999,597
20,000,000 Bayerisch Vereinbank,
5.595%, 9/24/98 20,000,466
8,000,000 Bayerisch Vereinbank,
5.6%, 12/7/98 7,997,195
10,000,000 Canadian Imperial Bank,
5.635%, 11/5/98 10,000,315
11,000,000 Credit Agricole,
5.8%, 7/31/98 11,000,129
10,000,000 Creditanstalt Bankverein,
5.59%, 7/6/98 10,000,014
10,000,000 Credito Italiano,
5.59%, 9/1/98 9,999,941
Deutsche Bank:
75,000,000 5.57%, 7/6/98 74,999,938
30,000,000 Halifax Building Society
5.59%, 9/22/98 29,999,763
KBC Bank:
50,000,000 5.5725%, 7/7/98 50,000,021
20,000,000 5.58%, 8/26/98 19,999,920
Nordeutsche Landesbank:
10,000,000 5.66%, 12/10/98 10,000,798
23,000,000 5.58%, 7/29/98 22,999,863
24,000,000 5.57%, 7/24/98 23,999,752
19,000,000 5.66%, 11/16/98 19,000,354
35,000,000 Rabobank,
5.565%, 7/16/98 35,000,072
-------------
Total Eurodollar Certificates of Deposit
(Amortized Cost $657,998,100) 657,998,100
-------------
EURODOLLAR TIME DEPOSITS - 12.30%
25,000,000 Banco Bilbao Vizcaya,
5.64%, 10/7/98 25,000,000
Principal
Amount Description Value
------ ----------- -----
$20,000,000 Bank Of America,
5.5313%, 7/13/98 $ 20,000,000
22,000,000 Bank Of Austria,
5.78%, 11/18/98 22,000,000
Bank Of Nova Scotia:
20,000,000 5.625%, 9/4/98 20,000,000
50,000,000 6.125%, 7/1/98 50,000,000
60,000,000 Bank Of Tokyo-Mitsubishi,
5.9375%, 7/14/98 60,000,000
20,000,000 Barclays Bank,
5.67%, 12/3/98 20,000,000
25,000,000 Bayerische Landesbank,
5.5625%, 7/9/98 25,000,000
25,000,000 Deutsche Bank,
6.5%, 7/1/98 25,000,000
40,000,000 International Nederlander Funding,
5.75%, 7/6/98 40,000,000
50,000,000 Toronto Dominion Bank,
6.25%, 7/1/98 50,000,000
132,148,756 Union Bank of Switzerland,
5.75%, 7/1/98 132,148,756
West Deutsche Landesbank:
50,000,000 5.61%, 9/29/98 50,000,000
35,000,000 5.5313%, 7/6/98 35,000,000
25,000,000 5.625%, 8/6/98 25,000,000
-------------
Total Eurodollar Time Deposits
(Amortized Cost $599,148,756) 599,148,756
-------------
FLOATING RATE NOTES - 18.99%
20,000,000 American Express Centurion Bank:
Monthly Variable Rate,
5.616%, 9/25/98 20,000,000
Associates Corp.:
Daily Variable Rate,
25,000,000 5.70%, 4/23/99 24,980,157
20,000,000 5.71%, 6/29/99 19,984,468
25,000,000 5.79%, 1/4/99 24,993,798
Bank Of Nova Scotia:
Monthly Variable Rate,
35,000,000 5.5123%, 6/10/99 34,975,009
See Notes to Financial Statements on Page 27
13
<PAGE>
Cash Management Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
Principal
Amount Description Value
------ ----------- -----
$40,000,000 Banque National de Paris:
Monthly Variable Rate,
5.5323%, 6/1/99 $ 39,977,973
40,000,000 Bayerische Hypotheka:
Monthly Variable Rate,
5.5162%, 5/28/99 39,971,410
Bayerische Landesbank:
Monthly Variable Rate,
25,000,000 5.521%, 6/29/99 24,981,671
20,000,000 5.5262%, 2/25/99 19,992,415
10,000,000 Bear Stearns Co.:
Monthly Variable Rate,
5.6262%, 6/4/99 10,000,000
Chase Manhattan Bank:
Quarterly Variable Rate,
5,000,000 5.7875%, 11/10/98 5,003,189
5,000,000 5.6562%, 10/15/98 5,000,888
30,000,000 Commerz Bank:
Monthly Variable Rate,
5.5162%, 5/28/99 29,978,558
30,000,000 CoreStates Bank:
Monthly Variable Rate,
5.6012%, 3/5/99 30,000,000
20,000,000 Creditanstalt Bankverein:
Monthly Variable Rate,
5.5145%, 6/3/99 19,987,294
40,000,000 Deutsche Bank:
Quarterly Variable Rate,
5.5275%, 6/1/99 39,971,181
General Electric Capital Corporation:
Quarterly Variable Rate,
15,000,000 5.607%, 1/15/99 15,000,000
10,000,000 5.6075%, 11/6/98 10,000,000
55,000,000 J.P. Morgan:
Monthly Variable Rate,
5.5273%, 2/24/99 54,973,723
10,000,000 Key Bank:
Daily Variable Rate,
5.54%, 1/29/99 9,996,916
KBC Bank:
Quarterly Variable Rate,
25,000,000 5.5375%, 6/1/99 24,984,239
Principal
Amount Description Value
------ ----------- -----
$15,000,000 Mellon Bank:
Quarterly Variable Rate,
5.7792%, 11/17/98 $ 15,000,000
Merrill Lynch & Co.:
Monthly Variable Rate,
20,000,000 5.606%, 4/13/99 19,998,433
Daily Variable Rate,
12,000,000 5.90%, 4/7/99 12,006,831
35,000,000 5.80%, 2/17/99 34,996,713
35,000,000 Morgan Stanley Group Inc.:
Monthly Variable Rate,
5.6162%, 11/6/98 35,000,000
15,000,000 National City Bank of Cleveland:
Monthly Variable Rate,
5.5462%, 3/5/99 14,996,030
25,000,000 NationsBank Corp.:
Daily Variable Rate,
5.89%, 3/18/99 25,015,517
Nordeutsche Landesbank:
Monthly Variable Rate,
17,000,000 5.5562%, 2/2/99 16,995,145
20,000,000 5.5362%, 2/25/99 19,993,596
Societe Generale:
Daily Variable Rate,
10,000,000 5.77%, 3/2/99 9,996,738
40,000,000 5.78%, 2/9/99 39,986,808
15,000,000 5.76%, 8/28/98 14,998,353
Monthly Variable Rate,
25,000,000 5.5712%, 5/7/99 24,986,393
10,000,000 5.5545%, 6/1/99 9,992,877
25,000,000 Student Loan Marketing Association:
5.321%, 9/28/98 24,999,391
20,000,000 Svenska Handelsbanken:
Monthly Variable Rate,
5.5362%, 6/2/99 19,986,311
10,000,000 US Bank:
Monthly Variable Rate,
5.55323%, 9/17/8 9,999,039
Wachovia Bank:
Monthly Variable Rate,
21,000,000 5.5162%, 5/12/99 20,987,497
25,000,000 5.5362%, 2/9/99 24,991,141
See Notes to Financial Statements on Page 27
14
<PAGE>
Cash Management Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
Principal
Amount Description Value
------ ----------- -----
$20,000,000 Walt Disney Co.:
Quarterly Variable Rate,
5.5175%, 2/26/99 $ 19,988,824
5,000,000 Westpac Capitol Corp.:
Quarterly Variable Rate,
5.544%, 4/9/99 4,998,107
--------------
Total Floating Rate Notes
(Amortized Cost $924,666,633) 924,666,633
--------------
REPURCHASE AGREEMENT - 1.54%
75,000,000 Tri-party Repurchase Agreement
with Goldman Sachs & Co.,
Dated 6/30/98, 6.25%,
Principal & Interest in the
amount of $75,013,021,
Due 7/01/98,
(Collateralized by FHMLC Bonds,
Par Value of $37,630,062,
Coupon Rates of 6.00% to
7.00%, Due from 5/1/03 to
2/1/12, Value of $36,017,383);
FNMA Bonds,
Par Value of $190,562,931
Coupon Rate of 7.00%, Due 8/1/26,
Value of $39,688,840 75,000,000
Total Repurchase Agreements
(Amortized Cost $75,000,000) 75,000,000
--------------
YANKEE CERTIFICATES OF DEPOSIT - 4.01%
11,000,000 Bank Of Montreal,
5.56%, 7/14/98 10,999,974
12,000,000 Bank Of Nova Scotia,
5.55%, 7/6/98 12,000,000
Principal
Amount Description Value
------ ----------- -----
Banque National de Paris:
$ 5,000,000 5.59%, 8/21/98 $ 4,999,994
11,000,000 5.58%, 9/11/98 10,999,557
13,000,000 5.8%, 10/5/98 13,000,786
Deutsche Bank:
6,000,000 5.55%, 7/20/98 5,999,848
22,000,000 5.58%, 8/6/98 21,999,981
2,000,000 5.705%, 4/16/99 1,998,517
40,000,000 Paribas Finance,
5.585%, 9/17/98 40,000,000
10,000,000 Royal Bank Of Canada,
5.56%, 2/26/99 9,996,846
2,000,000 Societe Generale Bank,
5.97%, 10/26/98 2,000,626
10,000,000 Swiss Bank,
5.75%, 5/7/99 9,998,351
31,000,000 Toronto Dominion,
5.58%, 9/25/98 30,998,222
20,000,000 Westpac Capitol Corp.,
5.67%, 3/23/99 19,991,652
--------------
Total Yankee Certificates of Deposit
(Amortized Cost $194,984,354) 194,984,354
--------------
Total Investments
(Amortized Cost $4,853,427,547) 99.66% $4,853,427,547
Other Assets Less Liabilities 0.34% 16,726,455
------ --------------
Net Assets 100.00% $4,870,154,002
====== ==============
- ----------
* Interest rates for Commercial paper represent discount rates at the time of
purchase.
See Notes to Financial Statements on Page 27
15
<PAGE>
NY Tax Free Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
NEW YORK - 93.02%
$ 1,000,000 Erie County, New York, G.O., RANS, Series A, (LOC: Union Bank of Switzerland)
4.50%, 10/29/98 $ 1,002,152
2,500,000 Great Neck North, New York, Water Authority Water System Revenue, Series A,
(FGIC Insured), Variable Rate Weekly Demand Note, 3.45%, 1/1/20 (a) 2,500,000
1,000,000 Half Hollows Hills, CSD, New York, Huntington & Babylon, G.O., TANS, 3.90%, 6/25/99 1,003,250
1,000,000 Half Hollows Hills, CSD, New York, Huntington & Babylon, G.O., TANS, 4.00%, 6/25/99 1,004,180
2,000,000 Long Island Power Authority, New York, Tax Exempt Commercial Paper, 3.75%, 8/20/98,
(LOC: Westdeutsche Landesbank, Bayerische Landesbank) 2,000,000
2,230,000 Metropolitan Transportation Authority, New York, Series 2, 8.00%, 7/1/2018, (Escrowed in U.S.
Government), Prerefunded 07/01/98 @ $102 2,274,600
500,000 Metropolitan Transportation Authority, New York, Series A, (MBIA Insured), 4.20%, 4/1/99 501,442
1,000,000 Monroe County, New York, G.O., Tax Exempt Commercial Paper, 3.45%, 9/10/98 1,000,000
1,000,000 Monroe County, New York, G.O., Tax Exempt Commercial Paper, 3.60%, 7/14/98 1,000,000
1,600,000 Montgomery County, New York, I.D.A., Service Merchandise Co., (LOC: Canadian Imperial Bank),
Variable Rate Monthly Demand Note, 3.65%, 12/31/24 (a) 1,600,000
1,000,000 Municipal Assistance Corp., New York City, New York, (LOC: Bayerische Landesbank),
Variable Rate Weekly Demand Note, 3.20%, 7/1/08 (a) 1,000,000
1,000,000 Municipal Assistance Corp., New York City, New York, (LOC: Westdeutsche Landesbank),
Variable Rate Weekly Demand Note, 3.20%, 7/1/08 (a) 1,000,000
1,000,000 Municipal Assistance Corp., New York City, New York, Series G, 5.00%, 07/01/99 1,013,508
1,000,000 Nassau County, New York, Series J, 7.30%, 10/15/98, (Escrowed to Maturity) 1,010,430
3,000,000 New York City, New York, Trust for Cultural Research Revenue, Museum of Broadcasting,
(LOC: KBC Bank N.V.), Variable Rate Weekly Demand Note, 3.35%, 5/1/14 (a) 3,000,000
2,300,000 New York City, New York, Health & Hospital Corp., Series A, (LOC: Morgan Guaranty Trust),
Variable Rate Weekly Demand Note, 3.20%, 2/15/26 (a) 2,300,000
2,000,000 New York City, New York, Transitional Finance Authority, Variable Rate Daily Demand Note,
3.65%, 5/1/28 (a) 2,000,000
100,000 New York City, New York, G.O., (LOC: Chase Manhattan Bank), Variable Rate Daily
Demand Note, 3.75%, 8/1/22 (a) 100,000
300,000 New York City, New York, G.O., (LOC: Chase Manhattan Bank), Variable Rate Daily
Demand Note, 3.75%, 8/1/23 (a) 300,000
500,000 New York City, New York, G.O., (LOC: Union Bank of Switzerland), Variable Rate Daily
Demand Note, 4.10%, 8/15/23 (a) 500,000
1,000,000 New York City, New York, G.O., Series D, (Escrowed to Maturity), 5.80%, 8/15/98 1,002,682
1,000,000 New York State Dormitory Authority Revenue (Sloan Kettering), Tax Exempt Commercial Paper,
(LOC: Chase Manhattan Bank), 3.55%, 7/15/98 1,000,000
1,000,000 New York State Dormitory Authority Revenue (Sloan Kettering), Tax Exempt Commercial Paper,
(LOC: Chase Manhattan Bank), 3.75%, 8/14/98 1,000,000
3,225,000 New York State Energy Research & Development Authority, Brooklyn Union Gas,
(MBIA Insured), Variable Rate Daily Demand Note, 3.45%, 12/1/20 (a) 3,225,000
2,050,000 New York State Energy Research & Development Authority, P.C.R., Orange/Rockland Utility,
(AMBAC Insured), Variable Rate Weekly Demand Note, 3.25%, 8/1/15 (a) 2,050,000
1,700,000 New York State Energy Research & Development Authority, P.C.R., Rochester Gas and Electric,
(MBIA Insured), Variable Rate Weekly Demand Note, 3.25%, 8/1/32 (a) 1,700,000
855,000 New York State Energy Research & Development Authority, P.C.R., Rochester Gas and Electric,
(MBIA Insured), Variable Rate Weekly Demand Note, 3.45%, 8/1/32 (a) 855,000
2,700,000 New York State Energy Research & Development Authority, P.C.R., Niagara Mohawk Power,
Series A, (LOC: Toronto Dominion Bank), Variable Rate Daily Demand Note, 3.75%, 7/1/15 (a) 2,700,000
2,800,000 New York State Energy Research & Development Authority, P.C.R., New York Electric and Gas,
(LOC: Morgan Guaranty Trust), Variable Rate Daily Demand Note, 3.80%, 6/1/29 (a) 2,800,000
500,000 New York State Environmental Facilities, State Water Revolving Fund, Series D, 5.65%, 3/15/99 506,931
2,500,000 New York State Housing Finance Agency, Contract Obligation Revenue, Series A,
(LOC: Commerzbank), Variable Rate Weekly Demand Note, 3.50%, 3/15/27 (a) 2,500,000
</TABLE>
See Notes to Financial Statements on Page 27
16
<PAGE>
NY Tax Free Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
$ 2,500,000 New York State Housing Finance Agency, State University Construction, Series A, 8.00%, 11/1/06,
(Escrowed in U.S. Government), Prerefunded 11/1/98 @ $102 $ 2,586,423
1,000,000 New York State Housing Finance Agency, Normandie Contract I Project, (LOC: Landesbank Hessen),
Variable Rate Weekly Demand Note, 3.20%, 5/15/15 (a) 1,000,000
1,000,000 New York State Housing Finance Agency, Hospital Special Surgery Staff, Series A,
(LOC: Chase Manhattan Bank), Variable Rate Weekly Demand Note, 3.45%, 11/1/10 (a) 1,000,000
1,500,000 New York State Local Government Assistance, Series G, (LOC: Bank of Nova Scotia), Variable Rate
Weekly Demand Note, 3.25%, 4/1/25 (a) 1,500,000
1,300,000 New York State Medical Care Facilities Finance Agency, Lenox Hill Hospital, Series A,
(LOC: Chase Manhattan Bank), Variable Rate Weekly Demand Note, 3.35%, 11/1/08 (a) 1,300,000
1,000,000 New York State, G.O., Series V, Tax Exempt Commercial Paper, 3.75%, 7/15/98 1,000,000
1,000,000 New York State, G.O., Series V, Tax Exempt Commercial Paper, 3.50%, 7/8/98 1,000,000
1,000,000 New York State, G.O., Series V, Tax Exempt Commercial Paper, 3.50%, 8/6/98 1,000,000
2,600,000 Onondaga County, New York, I.D.A., (LOC: Banque Nationale de Paris), Variable Rate Monthly
Demand Note, 3.35%, 11/13/98 (a) 2,600,000
1,395,000 Rensselaer County, New York, Series A, (AMBAC Insured), 4.00%, 6/1/99 1,399,700
1,000,000 Rochester, New York, Series A, (AMBAC Insured), 4.25%, 9/15/98 1,001,394
1,000,000 Rockland County, New York, G.O., 4.25%, 8/15/98 1,000,607
300,000 Syracuse, New York, I.D.A., Civic Facility Revenue, Multi-Modal Syracuse University Project,
(LOC: Morgan Guaranty Trust), Variable Rate Daily Demand Note, 3.85%, 3/1/23 (a) 300,000
150,000 Triborough Bridge & Tunnel Authority, Series O, 7.00%, 1/1/11, (Escrowed in U.S. Government),
Prerefunded 1/1/99 @ $102 154,603
200,000 Triborough Bridge & Tunnel Authority, Series O, 7.40%, 1/1/03, (Escrowed in U.S. Government),
Prerefunded 1/1/99 @ $102 206,529
2,390,000 Triborough Bridge & Tunnel Authority, Series O, 7.70%, 1/1/19, (Escrowed in U.S. Government),
Prerefunded 1/1/99 @ $102 2,482,459
1,000,000 Westchester County, New York, G.O., 4.60%, 11/15/98 1,003,134
650,000 Westchester County, New York, G.O., 4.60%, 12/15/98 652,589
-----------
Total New York: (Cost $66,636,613) 66,636,613
-----------
PUERTO RICO - 8.89%
2,000,000 Puerto Rico Commonwealth Highway and Transportation Authority, Series A, (AMBAC Insured),
Variable Rate Daily Demand Note, 3.00%, 7/1/28 (a) 2,000,000
850,000 Puerto Rico Commonwealth Highway Authority, Series P, 8.125%, 7/1/13,
(Escrowed in U.S. Government), Prerefunded 7/1/98 @ 102 867,000
3,500,000 Puerto Rico Commonwealth Government, TRANS, Series A, 4.50%, 7/30/98 3,502,321
-----------
Total Puerto Rico: (Cost $6,369,321) 6,369,321
-----------
Total Investments
(Amortized Cost $73,005,934) 101.91% $73,005,934
Liabilities in Excess of other Assets (1.91)% (1,366,010)
------ -----------
Net Assets 100.00% $71,639,924
====== ===========
</TABLE>
(a) Demand security; payable upon demand by the Fund with usually no more than
seven (7) calendar days' notice.
Interest rates are redetermined periodically. Rates shown are those in effect on
June 30, 1998.
The following abbreviations are used in portfolio descriptions:
AMBAC - American Municipal Bond Assurance Corporation
CSD - Central School District
FGIC - Financial Guaranty Insurance Corporation
G.O. - General Obligation
I.D.A. - Industrial Development Authority
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance Corporation
P.C.R. - Pollution Control Revenue
RANS - Revenue Anticipation Notes
TANS - Tax Anticipation Notes
TRANS - Tax and Revenue Anticipation Notes
See Notes to Financial Statements on Page 27
17
<PAGE>
Tax Free Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
ARIZONA - 1.08%
$ 1,200,000 Pinal County, Arizona, I.D.A., P.C.R., (LOC: National Westminster),
Variable Rate Daily Demand Note, 3.90%, 12/1/09 (a) $ 1,200,000
500,000 Pinal County, Arizona, I.D.A., P.C.R., (LOC: National Westminster),
Variable Rate Daily Demand Note, 3.90%, 12/1/09 (a) 500,000
-----------
1,700,000
-----------
CALIFORNIA - 1.63%
1,000,000 Los Angeles County, California, TRANS, Series A, 4.5%, 6/30/99 1,008,920
1,555,000 Sacramento, California , Munipical Utility District, Series W, 7.50%, 08/15/18,
(Escrowed in U.S. Government), Prerefunded 08/15/98 @ 100 1,562,637
-----------
2,571,557
-----------
COLORADO - 0.64%
1,000,000 Colorado State, TRANS, Series A, 4.25%, 6/25/99 1,006,430
-----------
DELAWARE - 0.63%
1,000,000 Delaware State, G.O., Series A, 5.70%, 8/15/98 1,002,721
-----------
FLORIDA - 5.62%
5,785,000 Florida Housing Finance Agency, River Oaks, (LOC: Citibank), Variable Rate Weekly Demand Note,
3.50%, 12/1/07 (a) 5,785,000
2,100,000 Pinellas County, Florida, Health Facility Authority Revenue, Pooled Hospital Loan Program,
(LOC: Chase Manhattan Bank), Variable Rate Daily Demand Note, 3.90%, 12/1/15 (a) 2,100,000
1,000,000 Sunshine County, Florida, Tax Exempt Commercial Paper, (AMBAC Insured), 3.65%, 8/12/98 1,000,000
-----------
8,885,000
-----------
GEORGIA - 4.44%
2,000,000 Fulton County, Georgia, TANS, 4.25%, 12/31/98 2,006,052
1,000,000 Georgia State, G.O., Series C, 6.50%, 7/1/98 1,000,000
1,500,000 Georgia State, G.O., Series C, 7.25%, 7/1/98 1,500,000
1,500,000 Georgia State, G.O., Series F, 6.50%, 12/1/98 1,517,512
1,000,000 Municipal Electric Authority, Georgia, (LOC: Bayerische Landesbank, Credit Suisse First Boston,
Morgan Guaranty), Variable Rate Weekly Demand Notes, 3.35%, 6/1/20 (a) 1,000,000
-----------
7,023,564
-----------
ILLINOIS - 1.47%
1,300,000 Burbank, Illinois, I.D.R., Service Merchandise Inc., (LOC: Canadian Imperial Bank),
Variable Rate Monthly Demand Note, 3.65%, 9/15/24 (a) 1,300,000
1,000,000 Chicago, Illinois, Met Water Reclamation District - Greater Chicago, 7.25%, 1/1/02,
(Escrowed in U.S. Government), Prerefunded 1/1/99 @ 100 1,018,171
-----------
2,318,171
-----------
INDIANA - 1.64%
2,600,000 Indiana Health Facility Authority, Hospital Revenue (Charity Obligation Group), Series E,
Variable Rate Weekly Demand Note, 3.40%, 11/1/26 (a) 2,600,000
-----------
IOWA - 3.73%
3,000,000 Polk County, Iowa, (Catholic Health), Series B, Variable Rate Weekly Demand Note, 3.40%,
12/1/15 (a) 3,000,000
2,895,000 Urbandale, Iowa, I.D.R., Meredith Drive Associates, (Guaranteed by Principal Financial Group),
Variable Rate Monthly Demand Note, 4.25%, 11/1/15 (a) 2,895,000
-----------
5,895,000
-----------
KANSAS - 0.89%
1,400,000 Fairway, Kansas, I.D.R., J.C. Nichols Project, (Guaranteed by Principal Mutual Insurance),
Variable Rate Monthly Demand Note, 4.25%, 11/1/14 (a) 1,400,000
-----------
</TABLE>
See Notes to Financial Statements on Page 27
18
<PAGE>
Tax Free Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
LOUISIANA - 0.63%
$ 1,000,000 Jefferson Parish, Louisiana Hospital Revenue, West Jefferson Medical Center,
(LOC: Rabobank Nederland), Variable Rate Weekly Demand Note, 3.60%, 1/1/26 (a) $ 1,000,000
-----------
MARYLAND - 3.98%
2,000,000 Maryland State Department of Transportation, Second Issue, 6.90%, 11/15/04
(Escrowed in U.S. Government), Prerefunded 11/15/98 @ $102 2,064,487
1,000,000 Montgomery County, Maryland, G.O., Tax Exempt Commercial Paper, 3.55%, 8/6/98 1,000,000
1,000,000 Montgomery County, Maryland, G.O., Tax Exempt Commercial Paper, 3.65%, 7/9/98 1,000,000
1,200,000 Washington Suburban Sanitary District, Maryland, Water Supply, 4.00%, 6/1/99 1,203,182
1,000,000 Washington Suburban Sanitary District, Maryland, General Construction, 7.00%, 6/1/99 1,029,357
-----------
6,297,026
-----------
MICHIGAN - 7.09%
1,000,000 Michigan State University, General, Series A-1, 4.25%, 8/15/98 1,000,840
5,000,000 Michigan State, TRANS, G.O., 4.50%, 9/30/98 5,010,040
5,200,000 Michigan State Hospital Financial Authority, Hospital (Charity Obligation Group)
Variable Rate Weekly Demand Note, 3.40%, 11/1/18 (a) 5,200,000
-----------
11,210,880
-----------
MINNESOTA - 0.32%
500,000 Minnesota State, G.O., 4.70%, 8/1/98 500,394
-----------
MISSISSIPPI - 3.73%
5,100,000 Jackson County, Mississippi, Chevron USA Inc. Project, (Guaranteed by Chevron),
Variable Rate Daily Demand Note, 3.75%, 6/1/23 (a) 5,100,000
800,000 Perry County, Mississippi, Leaf River Forest Project, (LOC: Wachovia), Variable Rate Daily
Demand Note, 3.80%, 3/1/02 (a) 800,000
-----------
5,900,000
-----------
MISSOURI - 1.90%
3,000,000 Missouri State, G.O., Third Street Building, Series A, 7.50%, 8/1/98 3,009,771
-----------
NEW HAMPSHIRE - 1.33%
2,100,000 New Hampshire State, I.D.A., (LOC: Union Bank of Switzerland), Variable Rate Monthly
Demand Note, 3.70%, 7/1/13 (a) 2,100,000
-----------
NEW YORK - 6.80%
2,000,000 Long Island Power Authority, New York, Tax Exempt Commercial Paper, 3.75%, 8/20/98,
(LOC: Westdeutsche Landesbank, Bayerische Landesbank) 2,000,000
1,000,000 Long Island Power Authority, New York, Sub Series 2, (Westdeutsche Landesbank,
Bayerische Landesbank), Variable Rate Weekly Demand Note, 3.25%, 5/1/33 (a) 1,000,000
1,500,000 Monroe County, New York, G.O., Tax Exempt Commercial Paper, 3.45%, 9/10/98 1,500,000
100,000 New York City, New York, G.O., Sub Series A-5, (LOC: Morgan Guaranty), Variable Rate
Daily Demand Note, 4.10%, 8/1/16 (a) 100,000
400,000 New York City, New York, G.O., (LOC: Union Bank of Switzerland), Variable Rate Daily
Demand Note, 4.10%, 8/15/23 (a) 400,000
1,500,000 New York City, New York, G.O., Series B, (Insured FGIC), Variable Rate Daily Demand Note,
4.10%, 10/1/22 (a) 1,500,000
100,000 New York City, New York, G.O., Sub Series A-2, (LOC: Morgan Guaranty), Variable Rate Daily
Demand Note, 4.10%, 8/15/19 (a) 100,000
300,000 New York City, New York, G.O., Sub Series B-4, (LOC: Union Bank of Switzerland), Variable
Rate Daily Demand Note, 4.10%, 8/15/22 (a) 300,000
550,000 New York City, New York, G.O., Sub Series A-5, (LOC: KBC Bank N.V.), Variable Rate Daily
Demand Note, 4.00%, 8/1/16 (a) 550,000
800,000 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue,
Series A, (Insured FGIC), Variable Rate Daily Demand Note, 3.80%, 6/15/25 (a) 800,000
</TABLE>
See Notes to Financial Statements on Page 27
19
<PAGE>
Tax Free Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
$ 2,000,000 New York State, G.O., Series V, Tax Exempt Commercial Paper, 3.75%, 7/15/98 $ 2,000,000
500,000 New York State Local Government Assistance, Series G, (LOC: Bank of Nova Scotia), Variable Rate
Weekly Demand Note, 3.25%, 4/1/25 (a) 500,000
-----------
10,750,000
-----------
OHIO - 0.63%
1,000,000 Ohio State, G.O., Highway Capital Improvements, Series B, 4.25%, 5/1/99 1,004,035
-----------
PENNSYLVANIA - 2.21%
1,000,000 Delaware County, Pennsylvania, Industrial Development Authority, Philadelphia Electric Co.,
(LOC: Toronto Dominion Bank), Variable Rate Daily Demand Note, 3.75%, 8/1/16 (a) 1,000,000
1,900,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Series B,
(LOC: Credit Suisse First Boston), Variable Rate Weekly Demand Note, 3.45%, 12/1/20 (a) 1,900,000
600,000 Lehigh County, Pennsylvania, I.D.A., Allegheny Electric, (LOC: Rabobank Nederland),
Variable Rate Monthly Demand Note, 3.70%, 6/1/14 (a) 600,000
-----------
3,500,000
-----------
PUERTO RICO - 2.50%
2,200,000 Puerto Rico Commonwealth Highway and Transportation Authority, Series A, (AMBAC Insured),
Variable Rate Weekly Demand Note, 3.00%, 7/1/28 (a) 2,200,000
1,750,000 Puerto Rico Commonwealth Government, TRANS, Series A, 4.50%, 7/30/98 1,751,280
-----------
3,951,280
-----------
SOUTH CAROLINA - 3.59%
1,000,000 Piedmont Municipal Power Agency Electric Co., (MBIA Insured),
Variable Rate Weekly Demand Note, 3.35%, 1/1/22 (a) 1,000,000
3,000,000 Rock Hill, South Carolina, Utility System Revenue, Series B, (AMBAC Insured),
Variable Rate Weekly Demand Note, 3.40%, 1/1/23 (a) 3,000,000
1,680,000 South Carolina State, G.O., Series A, 5.00%, 7/1/98 1,680,000
-----------
5,680,000
-----------
TENNESSEE - 6.26%
4,300,000 Knox County, Tennessee, Health Educational & Housing Facility, Mercy Health System, Series A,
Variable Rate Weekly Demand Note, 3.50%, 12/1/15 (a) 4,300,000
1,000,000 Metropolitan Nashville Airport Authority, Special Facilities Revenue, American Airlines Project,
Series B, (LOC: Bayerische Landesbank), Variable Rate Daily Demand Note, 4.00%, 10/1/12 (a) 1,000,000
200,000 Metropolitan Nashville Airport Authority, Special Facilities Revenue, American Airlines Project,
Series A, (LOC: Credit Suisse First Boston), Variable Rate Daily Demand Note, 4.00%, 10/1/12 (a) 200,000
4,300,000 Tennessee State, Variable Rate Weekly Demand Note, 3.40%, 7/2/01 (a) 4,300,000
100,000 Tennessee State, Variable Rate Weekly Demand Note, 3.40%, 7/1/01 (a) 100,000
-----------
9,900,000
-----------
TEXAS - 22.31%
1,100,000 Angelina & Neches River Authority, Texas, Industrial Development Corporation, Solid Waste Revenue,
(LOC: Credit Suisse First Boston), Variable Rate Daily Demand Note, 3.80%, 5/1/14 (a) 1,100,000
4,400,000 Angelina & Neches River Authority, Texas, Industrial Development Corporation, Solid Waste Revenue,
(LOC: Credit Suisse First Boston), Variable Rate Daily Demand Note, 3.80%, 5/1/14 (a) 4,400,000
2,000,000 Board Of Regent (Texas A & M), Texas, Tax Exempt Commercial Paper, 3.70%, 7/27/98 2,000,000
2,000,000 City of Houston, Texas, Tax Exempt Commercial Paper, 3.65%, 8/11/98 2,000,000
5,600,000 Lower Colorado River Authority, Texas, (MBIA Insured), Variable Rate Weekly Demand Note,
3.40%, 1/1/13 (a) 5,600,000
2,700,000 Sabine River Authority, Texas, P.C.R., Utilities Electric Company, (LOC: Union Bank of
Switzerland), Variable Rate Daily Demand Note, 3.80%, 6/1/30 (a) 2,700,000
1,100,000 San Antonio, Texas, Electric & Gas, 5.00%, 2/1/99 1,108,289
655,000 San Antonio, Texas, Electric & Gas, 5.00%, 2/1/99 659,525
</TABLE>
See Notes to Financial Statements on Page 27
20
<PAGE>
Tax Free Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
$ 5,395,000 Texas Small Business, Texas Public Facilities, (LOC: National Westminster),
Variable Rate Weekly Demand Note, 3.65%, 7/1/26 (a) $ 5,395,000
1,000,000 Texas State, G.O., Series B, 7.50%, 10/1/98 1,009,194
6,300,000 Texas State, TRANS, Series A, 4.75%, 8/31/98 6,309,755
1,000,000 University Of Texas, Texas, Tax Exempt Commercial Paper, 3.70%, 8/12/98 1,000,000
2,000,000 University Of Texas, Texas, Tax Exempt Commercial Paper, 3.60%, 8/10/98 2,000,000
-----------
35,281,763
-----------
UTAH - 3.48%
1,500,000 Salt Lake City, Utah, (Pooled Hospital Financing Program), Variable Rate Weekly Demand Note,
3.50%, 1/1/20 (a) 1,500,000
1,000,000 Utah State, Series A, Tax Exempt Commercial Paper, 3.65%, 9/30/98 1,000,000
2,000,000 Utah State, Series A, Tax Exempt Commercial Paper, 3.60%, 8/13/98 2,000,000
1,000,000 Utah State, Series A, Tax Exempt Commercial Paper, 3.65%, 9/30/98 1,000,000
-----------
5,500,000
-----------
VERMONT - 2.99%
4,735,000 Vermont I.D.A., Central Vermont Public Service, (LOC: Toronto Dominion),
Variable Rate Monthly Demand Note, 3.70%, 12/1/13 (a) 4,735,000
-----------
VIRGINIA - 2.22%
3,505,000 Peninsula Port Authority, Virginia, Coal Term Revenue, Dominion Term Project,
(LOC: Barclays), Variable Rate Daily Demand Note, 4.00%, 7/1/16 (a) 3,505,000
-----------
WASHINGTON - 4.17%
3,175,000 Chelan County, Washington, Public Utility District 1, (MBIA Insured), Variable Rate Weekly
Demand Note, 3.50%, 6/1/15 (a) 3,175,000
1,000,000 Washington State, G.O., Series 1995C, 5.50%, 7/1/99 1,018,440
1,400,000 Washington State, G.O., Motor Vehicle Fuel, 4.20%, 9/1/98 1,401,755
1,000,000 Washington State, G.O., Series B, 6.45%, 8/1/98 1,002,238
-----------
6,597,433
-----------
WISCONSIN - 1.19%
655,000 Milwaukee, Wisconsin, G.O. Notes, Series B8, 4.50%, 6/15/99 659,565
1,200,000 Wisconsin State, Series A, Tax Exempt Commercial Paper, 5.75%, 5/1/99 1,219,123
-----------
1,878,688
-----------
WYOMING - 4.40%
5,150,000 Platte County, Wyoming, P.C.R., Tri State, (LOC: Societe Generale), Variable Rate Daily
Demand Note, 3.80%, 7/1/14 (a) 5,150,000
1,800,000 Uinta County, Wyoming, P.C.R., (Chevron U.S.A.), Variable Rate Daily
Demand Note, 3.75%, 12/1/22 (a) 1,800,000
-----------
6,950,000
-----------
Total Investments
(Amortized Cost $163,653,713) 103.50% $163,653,713
Liabilities in Excess of Other Assets (3.50)% (5,534,437)
------ ------------
Net Assets 100.00% $158,119,276
====== ============
</TABLE>
- ----------
(a) Demand security; payable upon demand by the Fund with usually no more than
seven (7) calendar days' notice.
Interest rates are redetermined periodically. Rates shown are those in effect on
June 30, 1998.
The following abbreviations are used in portfolio descriptions:
<TABLE>
<S><C>
AMBAC AMBAC Assurance Corporation MBIA Municipal Bond Investors Assurance Corporation
CSD Central School District P.C.R. Pollution Control Revenue
FGIC Financial Guaranty Insurance Corporation RANS Revenue Anticipation Notes
G.O. General Obligation TANS Tax Anticipation Notes
I.D.A. Industrial Development Authority TRANS Tax and Revenue Anticipation Notes
LOC Letter of Credit UFSD United Free School District
</TABLE>
See Notes to Financial Statements on Page 27
21
<PAGE>
Treasury Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
UNITED STATES TREASURY NOTES - 16.89%
$ 47,000,000 8.25%, 7/15/1998 $ 47,046,171
41,000,000 6.00%, 9/30/1998 41,054,718
22,580,000 5.125%, 11/30/1998 22,547,375
167,000,000 5.75%, 12/31/1998 167,246,971
45,000,000 4.75%, 8/31/1998 44,935,914
45,000,000 6.125%, 8/31/1998 45,042,728
35,000,000 4.75%, 8/31/1998 34,947,578
------------
Total U. S. Treasury Notes (Amortized Cost $402,821,455) 402,821,455
------------
UNITED STATES TREASURY BILLS - 3.15%
47,000,000 5.05%, 12/24/1998 45,839,622
30,000,000 5.165%, 12/10/1998 29,302,725
------------
Total U.S. Treasury Bills (Amortized Cost $75,142,347) 75,142,347
------------
REPURCHASE AGREEMENTS - 79.17%
115,000,000 Tri-party Repurchase Agreement with Canadian Imperial Bank
Dated 6/30/98, 5.50%, Principal and Interest in the amount
of $115,017,569 Due 7/1/98 (Collateralized by U.S. Treasury
Bonds, Par Value of $115,037,387, Coupon rates of 7.5% to
9.25%, Due 2/15/16 to 11/15/16, Value of $117,338,133) 115,000,000
115,000,000 Tri-Party Repurchase Agreement with Chase Manhattan Bank,
Dated 6/30/98, 5.70%, Principal and Interest in the amount
of $115,018,208 Due 7/1/98 (Collateralized by U.S. Treasury
Notes, Par Value of $110,820,000, Coupon rates of 6.25% to
7.50%, Due 1/31/02 to 5/15/02, Value of $117,300,697) 115,000,000
133,000,000 Tri-Party Repurchase Agreement with Deutsche Bank,
Dated 3/10/98, 5.46%, Principal and Interest in the amount
of $135,449,712, Due 7/6//98 (Collateralized by U.S.
Treasury Notes, Par Value of $135,449,712 Coupon rates of
6.75% & 6.6875% Due from 6/30/99 to 7/31/99, Value of
$132,043,282) 133,000,000
175,000,000 Tri-Party Repurchase Agreement with Deutsche Bank,
Dated 4/1/98, 5.46%, Principal and Interest in the amount of
$177,415,292 Due 7/1/98 (Collateralized by U.S.Treasury
Notes Par value of $178,500,001, Coupon rates of 7.75%,
9.375% &14.006%, Due From 6/30/99 to 11/15/11, Value of
$174,406,793) 175,000,000
25,000,000 Open Tri-party Repurchase Agreement with First Boston, 5.49%,
Dated 6/30/98, Daily Variable Rate, Principal amount of $25,000,000
Interest amount varies dependent on rate, Due 12/31/99
(Collateralized by U.S. Treasury Bills, Par Value of $19,624,847,
Coupon rates of 6.125% to 8.125%, Due from 7/9/98 to 6/24/99; U.S. Treasury Bonds,
Par Value of $5,889,395, Coupon rates of 10.375% to 13.125%,
Due from 5/15/01 to 11/15/21, Value of $25,013,962) 25,000,000
50,000,000 Tri-Party Repurchase Agreement with First Boston, 5.46%,
Dated 5/7/98, Principal and Interest in the amount of
$50,455,000 Due 7/6/98 (Collateralized by U.S. Treasury
Notes, Par Value of $50,738,509, Coupon rate of 7.125% to
8.5%, Due from 2/15/00 to 11/15/24, Value of $51,753,280)
50,000,000
2,262,437 Tri-Party Repurchase Agreement with Goldman Sachs, Dated
06/30/98, Principal and Interest in the amount of $2,262,801
Due 7/1/98 (Collateralized by U.S. Treasury Note, Par Value of $2,262,437,
Coupon rate of 5.80% Due 05/21/21, Value of $2,307,896) 2,262,437
</TABLE>
See Notes to Financial Statements on Page 27
22
<PAGE>
Treasury Money Portfolio
Statement of Net Assets June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
----- ----------- -----
<S><C>
$115,000,000 Tri-party Repurchase Agreement with Greenwich Capital, Dated
06/30/98, 5.80%, Principal and Interest in the amount of
$115,018,528, Due 7/1/98 (Collateralized by U.S. Treasury
Notes, Par Value of $111,125,000, Coupon rates of 6.5% to
8.45%, Due from 7/12/99 to 5/15/05, Value of $117,302,349) $ 115,000,000
115,000,000 Tri-party Repurchase Agreement with Hong Kong Shanh, Dated
6/30/98, 5.7%, Principal and Interest in the amount of
$115,018,208, Due 7/1/98, (Collateralized by U.S. Treasury
Notes, Par Value of $115,002,843, Coupon rates of 6.5% to
11.25%, Due from 2/15/14 to 11/15/26, Value of $117,302,897) 115,000,000
100,000,000 Tri-party Repurchase Agreement with J.P. Morgan, Dated 6/30/98,
5.75%, Principal & Interest in the amount of $ 100,015,972, Due 7/1/98,
(Collateralized by U.S. Treasury Notes, Par Value of $102,000,648,
Coupon rates of 6.625% to 6.875% Due from 8/15/07 to 2/15/19,
Value of $100,000,635) 100,000,000
175,000,000 Tri-party Repurchase Agreement with J.P. Morgan, Dated
6/30/98 5.75%, Principal & Interest in the amount of
$100,015,972, Due 07/01/98, (Collateralized by U.S. Treasury
Notes, Par Value of $530,299,000, Coupon rate of 5.375% Due
from 08/15/07 to 02/15/19, Value of $175,000,248) 175,000,000
125,000,000 Tri-party Repurchase Agreement with Merrill Lynch, Dated 5/20/98,
5.49%, Principal & Interest in the amount of $126,753,750, Due 8/20/98,
(Collateralized by U.S. Treasury Bonds, Par Value of $125,004,366,
Coupon rates of 8.125% to 13.375% Due from 8/15/01 to 8/15/19, Value of $127,504,444)
125,000,000
138,000,000 Tri-party Repurchase Agreement with Merrill Lynch, Dated
4/6/98, 5.45%, Principal & Interest in the amount of
$139,901,142, Due 7/6/98, (Collateralized by U.S. Treasury
Bonds, Par Value of $138,004,746, Coupon rates of 5.75% to
8.00% Due from 8/15/98 to 2/15/23, Value of $140,764,843)
138,000,000
115,000,000 Tri-party Repurchase Agreement with Morgan Stanley, Dated
6/30/98, 5.68%, Principal & Interest in the amount of
$115,018,144, Due 7/01/98, (Collateralized by U.S. Treasury
Bond, Par Value of $24,591,716, Coupon rate of 8.75%, Due
8/15/20, Value of $24,109,526; U.S. Treasury Notes, Par
Value of $93,294,702, Coupon rates of 6.375% to 9.25%, Due
8/15/98 to 8/15/02, Value of $91,465,395) 115,000,000
90,000,000 Tri-party Repurchase Agreement with Swiss Bank, Dated 6/30/98,
5.75%, Principal & Interest in the amount of $ 90,014,375, Due 7/1/98,
(Collateralized by U.S. Treasury Notes, Par Value of $91,825,590,
Coupon rates of 5.50% to 5.86%, Due from to 5/15/98 to 2/29/00, Value of $90,025,088)
90,000,000
300,000,000 Open Tri-party Repurchase Agreement with West Deutsche Bank,
Dated 6/30/98, Daily Variable Rate, Principal in the amount of 300,000,000,
Interest amount varies dependent on rate, Due 12/31/1999, (Collateralized by U.S. Treasury
Bonds, Par Value of $102,033,190, Coupon rates of 8.00% to 11.25%, Due from 2/15/03 to
11/15/21, Value of $100,032,539; U.S. Treasury Notes, Par Value of $204,133,103,
Coupon rates of 5.125% to 6.625%, Due from 9/30/98 to 10/15/06, Value of $200,130,493) 300,000,000
-------------
Total Repurchase Agreements (Amortized Cost $1,888,262,437) 1,888,262,437
-------------
Total Investments
(Amortized Cost $2,366,226,239) 99.21% $2,366,226,239
Other Assets Less Liabilities 0.79% 18,740,052
------ --------------
Net Assets 100.00% $2,384,966,291
====== ==============
</TABLE>
See Notes to Financial Statements on Page 27
23
<PAGE>
BT Portfolios
Statements of Operations For the six months ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Cash NY Tax Tax Free Treasury
Management Free Money Money Money
------------- ------------- ------------ ------------
<S><C>
Investment Income
Interest $ 140,067,522 $ 1,530,122 $ 2,762,824 $ 70,251,740
------------- ------------- ------------ ------------
Expenses
Advisory Fees 3,724,519 65,842 116,791 1,903,366
Administration and Services Fees 1,241,506 21,948 38,930 634,455
Professional Fees 15,425 12,194 12,884 7,056
Trustees Fees 1,037 1,008 1,037 501
Miscellaneous 9,244 49 49 2,134
------------- ------------- ------------ ------------
Total Expenses 4,991,731 101,041 169,691 2,547,512
Less: Expenses Absorbed by Bankers Trust (522,308) (13,251) (13,970) (9,691)
------------- ------------- ------------ ------------
Net Expenses 4,469,423 87,790 155,721 2,537,821
------------- ------------- ------------ ------------
Net Investment Income 135,598,099 1,442,332 2,607,103 67,713,919
Realized Gain (Loss) from Investment
Transactions 83,981 (472) 433 141,013
------------- ------------- ------------ ------------
Net Increase in Net Assets from Operations $ 135,682,080 $ 1,441,860 $ 2,607,536 $ 67,854,932
============= ============= ============ ============
</TABLE>
See Notes to Financial Statements on Page 27
24
<PAGE>
BT Portfolios
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Cash Management NY Tax Free Money
------------------------------------- -----------------------------------
For the six For the For the six For the
months ended year ended months ended year ended
June 30, 1998(+) December 31, 1997 June 30, 1998(+) December 31, 1997
---------------- ----------------- ---------------- -----------------
<S><C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income $ 135,598,099 $ 237,022,519 $ 1,442,332 $ 3,170,279
Net Realized Gain (Loss) from Investment
Transactions 83,981 (41,207) (472) (1,774)
---------------- ---------------- ------------- -------------
Net Increase in Net Assets from Operations 135,682,080 236,981,312 1,441,860 3,168,505
---------------- ---------------- ------------- -------------
Capital Transactions
Proceeds from Capital Invested 16,108,662,027 25,687,643,529 221,804,756 228,224,582
Value of Capital Withdrawn (15,413,915,080) (25,146,809,558) (237,417,687) (221,814,747)
---------------- ---------------- ------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Transactions 694,746,947 540,833,971 (15,612,931) 6,409,835
---------------- ---------------- ------------- -------------
Total Increase (Decrease) in Net Assets 830,429,027 777,815,283 (14,171,071) 9,578,340
Net Assets
Beginning of Period 4,039,724,975 3,261,909,692 85,610,995 76,032,655
---------------- ---------------- ------------- -------------
End of Period $ 4,870,154,002 $ 4,039,724,975 $ 71,639,924 $ 85,610,995
================ ================ ============= =============
</TABLE>
- ----------
(+) Unaudited
<TABLE>
<CAPTION>
Tax Free Money Treasury Money
------------------------------------- -----------------------------------
For the six For the For the six For the
months ended year ended months ended year ended
June 30, 1998(+) December 31, 1997 June 30, 1998(+) December 31, 1997
---------------- ----------------- ---------------- -----------------
<S><C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income $ 2,607,103 $ 4,722,622 $ 67,713,919 $ 108,213,323
Net Realized Gain (Loss) from Investment
Transactions 433 (5,713) 141,013 7,627
------------- ------------- --------------- ---------------
Net Increase in Net Assets from Operations 2,607,536 4,716,909 67,854,932 108,220,950
------------- ------------- --------------- ---------------
Capital Transactions
Proceeds from Capital Invested 625,107,433 355,608,821 8,542,786,138 12,977,569,030
Value of Capital Withdrawn (620,474,455) (327,160,734) (8,344,974,716) (12,946,202,889)
------------- ------------- --------------- ---------------
Net Increase in Net Assets from
Capital Transactions 4,632,978 28,448,087 197,811,422 31,366,141
------------- ------------- --------------- ---------------
Total Increase in Net Assets 7,240,514 33,164,996 265,666,354 139,587,091
Net Assets
Beginning of Period 150,878,762 117,713,766 2,119,299,937 1,979,712,846
------------- ------------- --------------- ---------------
End of Period $ 158,119,276 $ 150,878,762 $ 2,384,966,291 $ 2,119,299,937
============= ============= =============== ===============
</TABLE>
- ----------
(+) Unaudited
See Notes to Financial Statements on Page 27
25
<PAGE>
BT Portfolios
Financial Highlights
Contained below are selected ratios and supplemental data for each of the
periods indicated for each of the Portfolios.
<TABLE>
<CAPTION>
For the six months Cash Management
ended June 30, For the years ended December 31,
1998(1) 1997 1996 1995 1994 1993
------------------ ---------- ---------- ---------- ---------- ----------
<S><C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $4,870,154 $4,039,725 $3,261,910 $2,615,932 $2,735,025 $1,930,075
Ratios to Average Net Assets:
Net Investment Income 5.46%** 5.43% 5.27% 5.77% 4.24% 3.06%
Expenses 0.18%** 0.18% 0.18% 0.18% 0.18% 0.20%
Decrease Reflected in Above Expense Ratio
Due to Absorption of Expenses by Bankers
Trust 0.02%** 0.02% 0.02% 0.02% 0.02% 0.00%(2)
</TABLE>
<TABLE>
<CAPTION>
For the six months NY Tax Free Money
ended June 30, For the years ended December 31,
1998(1) 1997 1996 1995 1994 1993
------------------ ---------- ---------- ---------- ---------- ---------
<S><C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $ 71,640 $ 85,611 $ 76,033 $ 70,933 $ 79,334 $ 104,188
Ratios to Average Net Assets:
Net Investment Income 3.29%** 3.37% 3.18% 3.62% 2.60% 2.21%
Expenses 0.20%** 0.20% 0.20% 0.20% 0.20% 0.20%
Decrease Reflected in Above Expense Ratio
Due to Absorption of Expenses by Bankers
Trust 0.02%** 0.03% 0.05% 0.04% 0.03% 0.03%
</TABLE>
<TABLE>
<CAPTION>
For the six months Tax Free Money
ended June 30, For the years ended December 31,
1998(1) 1997 1996 1995 1994 1993
------------------ ---------- ---------- ---------- ---------- ---------
<S><C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $ 158,119 $ 150,879 $ 117,714 $ 119,703 $ 110,408 $ 111,604
Ratios to Average Net Assets:
Net Investment Income 3.35%** 3.45% 3.34% 3.82% 2.76% 2.50%
Expenses 0.20%** 0.20% 0.20% 0.20% 0.20% 0.20%
Decrease Reflected in Above Expense Ratio
Due to Absorption of Expenses by Bankers
Trust 0.01%** 0.02% 0.04% 0.03% 0.03% 0.02%
</TABLE>
<TABLE>
<CAPTION>
For the six months Treasury Money
ended June 30, For the years ended December 31,
1998(1) 1997 1996 1995 1994 1993
------------------ ---------- ---------- ---------- ---------- ---------
<S><C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) $2,384,966 $2,119,300 $1,979,713 $1,941,082 $ 882,775 $ 789,479
Ratios to Average Net Assets:
Net Investment Income 5.33%** 5.29% 5.14% 5.58% 3.93% 2.93%
Expenses 0.20%** 0.20% 0.20% 0.20% 0.20% 0.20%
Decrease Reflected in Above Expense Ratio
Due to Absorption of Expenses by Bankers
Trust 0.00%(2) 0.00%(2) 0.00%(2) 0.01% 0.01% 0.01%
</TABLE>
- ----------
(1) Unaudited.
(2) Less than 0.01%.
** Annualized
See Notes to Financial Statements on Page 27
26
<PAGE>
BT Portfolios
Notes to Financial Statements (unaudited)
Note 1--Organization and Significant Accounting Policies
A. Organization
Cash Management Portfolio, NY Tax Free Money Portfolio, Tax Free Money Portfolio
and Treasury Money Portfolio (each a "Portfolio", and collectively, the
"Portfolios") are registered under the Investment Company Act of 1940 (the
"Act"), as amended, as open-end management investment companies. The portfolios
were organized as an unincorporated trust under laws of New York and commenced
operations as follows:
Organization Commencement
Portfolio Date of Operations
- ------------------- -------------- -----------------
Cash Management March 26, 1990 July 23, 1990
NY Tax Free Money March 26, 1990 February 19, 1991
Tax Free Money March 26, 1990 February 19, 1991
Treasury Money March 26, 1990 July 23, 1990
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
beneficial interests in the Portfolios.
B. Security Valuation
Investments are valued at amortized cost, which is in accordance with Rule 2a-7
of the Investment Company Act of 1940 and represents the fair value of each
Portfolio's investments.
C. Security Transactions and Interest Income
Security transactions are accounted for on a trade date basis. 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.
All of the net investment income and realized and unrealized gains and losses
from the security transactions of the Portfolios are allocated pro rata among
the investors in the respective Portfolios at the time of such determination.
D. Repurchase Agreements
Each of the Portfolios may enter into repurchase agreements with financial
institutions deemed to be creditworthy by the Portfolios' Investment Advisor,
subject to the seller's agreement to repurchase such securities at a mutually
agreed upon price. Securities purchased subject to repurchase agreements are
deposited with the Portfolios' custodian, and, pursuant to the terms of the
repurchase agreement, must have an aggregate market value greater than or equal
to the repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, The Portfolio will require the seller to deposit additional collateral
by the next business day. If the request for additional collateral is not met,
or the seller defaults on its repurchase obligation, the Portfolios maintain the
right to sell the underlying securities at market value and may claim any
resulting loss against the seller. However, in the event of default or
bankruptcy by the seller, realization and/or retention of the collateral may be
subject to legal proceedings.
E. Federal Income Taxes
It is each Portfolio's policy to comply with the requirements of the Internal
Revenue Code. Therefore, no federal income tax provision is required.
F. Other
The preparation of financial statements in conformity with generally accepted
accounting principles 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
Each Portfolio has entered in an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to each of the Portfolios in return for a fee computed
daily and paid monthly at an annual rate of the Portfolio's average daily net
assets. The following provides a table of annual rates and the aggregate fees
owed for each of the respective Portfolios at June 30, 1998:
Portfolio Annual Rate Fees
- ------------------- ----------- ----------
Cash Management .05% $ 208,865
NY Tax Free Money .05% 3,228
Tax Free Money .05% 7,237
Treasury Money .05% 127,300
Each Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at an annual rate of the Portfolio's average
daily net assets. The following provides a table of annual rates and aggregate
fees owed for each of the respective Portfolios at June 30, 1998:
Portfolio Annual Rate Fees
- ------------------- ----------- ----------
Cash Management .15% $ 626,596
NY Tax Free Money .15% 9,685
Tax Free Money .15% 21,712
Treasury Money .15% 333,336
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of each Portfolio, to the extent necessary, to limit all expenses based
upon an annual rate of the average daily net assets of the Portfolio.
At June 30, 1998, the annual rates, expense reductions for the six-month period
ended and waiver/reimbursement amounts due at period end for the respective
Portfolios were as follows:
Waivers and Reimbursement
----------------------------
Portfolio Annual Rate Expense Reduction Fees Due
- --------------- ----------- ----------------- ---------
Cash Management .18% $ 522,308 $87,807
NY Tax Free Money .20% 13,251 2,196
Tax Free Money .20% 13,970 2,315
Treasury Money .20% 9,691 --
27
<PAGE>
BT Portfolios
Notes to Financial Statements (continued)
(unaudited)
Certain officers of the Portfolios are also directors, officers and/or employees
of Edgewood Services, Inc., distributor of the BT Investment Funds. None of the
officers so affiliated received compensation for services as officers of the
Portfolios.
Effective August 11, 1998, ICC Distributors, Inc. will replace Edgewood as
distributor of the Trust.
The BT Investment Portfolios are a participant with other affiliated entities in
a revolving credit facility ("the revolver") and a discretionary demand line of
credit facility ("collectively the credit facilities") in the amounts of
$50,000,000 and $100,000,000, respectively. A commitment fee of .07% per annum
on the average daily amount of the available commitment is payable on a
quarterly basis and apportioned equally among all participants. Amounts borrowed
under the credit facilities will bear interest at a rate per annum equal to the
Federal Funds Rate plus .45%. No amounts were drawn down or outstanding under
the credit facilities as of and for the period ended June 30, 1998.
In 1994, the Cash Management Portfolio sold certain structured notes carried at
par to an unrelated third party financial institution at par plus accrued
interest pursuant to a put agreement and that third party financial institution
immediately resold such security to Bankers Trust New York Corporation, the
parent of the Advisor, at the same price, also pursuant to a put agreement. As a
result of these transactions the Portfolio's Financial Highlights for the year
ended December 31, 1994 reflect the Portfolio's realized loss on the sale of
these securities and a capital contribution in the amount of $18,718,663. In
1996, Bankers Trust contributed capital in the amount of $1,113,488 to reimburse
the Cash Management Portfolio for capital losses in prior years.
Note 3--Purchases of Investment Securities
At June 30, 1998, amounts owed for securities purchased were as follows:
Portfolio Amount Owed
--------- -----------
Cash Management $ --
NY Tax Free Money 2,007,430
Tax Free Money 6,937,004
Treasury Money --
Note 4--Net Assets
At June 30, 1998, net assets consisted of:
<TABLE>
<CAPTION>
Cash Management Portfolio New York Tax Free Money Portfolio Tax Free Money Portfolio Treasury Money Portfolio
------------------------- --------------------------------- ------------------------ ------------------------
<S><C>
Paid in Capital $4,870,154,002 $71,639,924 $158,119,276 $2,384,966,291
</TABLE>
28
<PAGE>
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<PAGE>
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<PAGE>
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<PAGE>
BT INVESTMENT FUNDS
CASH MANAGEMENT FUND
NY TAX FREE MONEY FUND
TAX FREE MONEY FUND
TREASURY MONEY FUND
Investment Advisor and Administrator of the Portfolio
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
Distributor
ICCDISTRIBUTORS, INC.
P.O. Box 7558
Portland, ME 04112-9892
Custodian and Transfer Agent
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
Independent Accountants
PRICEWATERHOUSECOOPERS LLP
250 West Pratt Street
Baltimore, MD 21201
Counsel
WILLKIE FARR & GALLAGHER
787 7th Avenue
New York, NY 10019
----------------
For information on how to invest, shareholder account information
and current price and yield information, please contact your
relationship manager or the BT Mutual Fund Service Center at
(800) 730-1313. This report must be preceded or accompanied by
a current prospectus for the Fund.
----------------
Cash Management Fund Cusip #055922108
NY Tax Free Money Fund Cusip #055922207
Tax Free Money Fund Cusip #055922306
Treasury Money Cusip #055922405
COMBMON100 (6/98)
