PRICEWATERHOUSECOOPERSPricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Telephone: (212) 596-8000
Facsimile: (212) 596-8910
September 20, 1999
Securities and Exchange Commission
73 Tremont Street -- Suite 600
Boston, MA 02108
Dear Sirs:
In compliance with Rule 17f-2 promulgated under the Investment Company Act of
1940, enclosed are our reports covering our examinations of the securities of
the Bankers Trust Company's U.S. Bond Index, Liquid Assets, Small
Capitalization, Cash Management, Treasury Money, Tax Free Money, NY Tax Free
Money, Equity 500 Index, Intermediate Tax Free, Capital Appreciation,
Institutional Daily Assets Fund, Asset Management, Asset Management II, Asset
Management III, Small Cap Index, Latin American Equity, Pacific Basin Equity,
Global High Yield Securities, EAFE Equity Index, International Equity, Equity
500 Index Fund (INsurance Trust), Small Cap Index Fund (Insurance Trust), BT
Preservation Plus (wrapped), BT Preservation Plus (unwrapped), EAFE Equity Index
Fund (Insurance Trust), Institutional Treasury Asset Fund, International Small
Company Equity, Global Emerging Markets and Equity Appreciation Fund at the
close of business on February 26, 1999.
Very truly yours,
/s/ PricewaterhouseCoopers LLP
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PricewaterhouseCoopers LLP
KJB:mlr
Enclosures
<PAGE>
Pricewaterhouse Coopers LLP
Report of Independent Accountants
To the Board of Trustees of:
U.S. Bond Index Portfolio
Liquid Assets Portfolio
Small Capitalization Portfolio
Cash Management Portfolio
Treasury Money Portfolio
Tax Free Money Portfolio
NY Tax Free Money Portfolio
Equity 500 Index Portfolio
Intermediate Tax Free Portfolio
Capital Appreciation Portfolio
Institutional Daily Assets Fund
Asset Management Portfolio
Asset Management II Portfolio
Asset Management III Portfolio
Samll Cap Index Portfolio
Latin American Equity Portfolio
Pacific Basin Equity Portfolio
Global High Yield Securities Portfolio
EAFE Equity Index Portfolio
International Equity Portfolio
Equity 500 Index Fund (Insurance Trust)
Small Cap Index Fund (Insurance Trust)
BT Preservation Plus Portfolio (wrapped)
BT Preservation Plus Portfolio (unwrapped)
EAFE Equity Index Fund (Insurance Trust)
Institutional Treasury Asset Fund
International Small Company Equity Portfolio
Global Emerging Markets Portfolio
Equity Appreciation Fund
We have examined management's assertion about U.S. Bond Index Portfolio, Liquid
Assets Portfolio, Small Capitalization Portfolio, Cash Management Portfolio,
Treasury Money Portfolio, Tax Free Money Portfolio, NY Tax Free Money Portfolio,
Equity 500 Index Portfolio, Intermediate Tax Free Portfolio, Capital
Appreciation Portfolio, Institutional Daily Assets Fund, Asset Management
Portfolio, Asset Management II Portfolio, Asset Management III Portfolio, Samll
Cap Index Portfolio, Latin American Equity Portfolio, Pacific Basin Equity
Portfolio, Global High Yield Securities Portfolio, EAFE Equity Index Portfolio,
International Equity Portfolio, Equity 500 Index Fund (Insurance Trust), Small
Cap Index Fund (Insurance Trust), BT Preservation Plus Portfolio (wrapped), BT
Preservation Plus Portfolio (unwrapped), EAFE Equity Index Fund (Insurance
Trust), Institutional Treasury Asset Fund, International Small Company Equity
Portfolio, Global Emerging Markets Portfolio, Equity Appreciation Fund
(collectively the "Portfolios") compliance with the requirements of subsections
(b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 ("the Act")
as of February 26, 1999 included in its representation letter dated September
13, 1999. Management is responsible for the Funds' compliance with those
requirements. Our responsibility is to express an opinion o management's
assertion about the Portfolios' compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Portfolios' compliance with those
requirement and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of February 26,1999 and with respect to agreement of security
purchases and sales, for the period from October 30, 1998 (the date of our last
examination) through February 26, 1999:
<PAGE>
- - Count and inspection of all securities located in the vault of Bankers
Trust in New York;
- - Confirmation of all securities held by institutions in book entry form-The
Federal Reserve Bank of New York, The Depository Trust COmpany, CREST and
CHESS
- - Confirmed all securities record - kept at banks with whom the Custodian
and the Portfolios have contracted to provide sub-custodian services
without prior notice to management including Citicorp-Florida, Generale
Bank Belgium, Creditanstalt Bankyerein Austria, Barclays Bank London,
Royal Bank of Canada, Den Danske Bank Denmark, Merita Bank Finland, Banque
Paribas France, Dresdner Bank Germany, National Bank of Greece, Deutsche
Bank India, Standard Charter Bank Indonesia, Allied Irish Bank Ireland,
Standard Charter Bank Hong Kong, Citibank Italy, Sumitomo Bank Tokyo,
Standard Charter Bank Korea, Custodian & Nominees Malaysia, Bancomer
Mexico, ABN AMRO Netherlands, ANZ Nominees Limited, New Zealand, Euroclear
Belgium, Standard Charter Bank Pakistan, Standard Charter Bank Manila,
Banco Espirito Portugal, United Overseas Bank Singapore, Banco Santander
Spain, Svenska Handelsbanken Sweden, Swiss Bank Corp Switzerland, Barclays
Bank Bostwana, Standard Charter Bank Thailand, ABAS Securities, CEDEL,
Citibank Poland, and Citibank Norway;
- - Confirmation of all securities hypothecated, pledged, placed in escrow, or
out for transfer with brokers, pledgees and/or transfer agents;
- - Reconciliation of all such securities to the books and records of the
Portfolios and the Custodian;
- - Confirmation of all repurchase agreements with brokers/banks and
agreement of underlying collateral with Bankers Trust records; and
- - Agreed selected securities purchased and securities sold or matured since
our last report from the books and records of the Portfolios to broker
confirms.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Portfolios' compliance
with specified requirements.
In our opinion, management's assertion that the Portfolios were in compliance
with the requirements of subsections (b) and(c) of Rule 17f-2 of the Investment
Company Act of 1940 as of February 26, 1999 with respect to securities reflected
in the investment accounts of the Portfolios is fairly stated, in all material
respects.
<PAGE>
This report is intended solely for the information and use of management of the
Portfolios and the Securities and Exchange Commission and should not be used for
any other purpose.
/s/ PricewaterhouseCoopers LLP
New York, New York
September 13, 1999
<PAGE>
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Washington, D.C. 20549
FORM N-17F-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR 370.17f-2)
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1. Investment Company Act File Number 811-4760 Date examination
BT Investment Funds 811-6071 completed:
BT Institutional Funds 811-6526 February 26, 1999
BT Pyramid Mutual Funds 811-7052
The Leadership Trust 811-7052
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2. State Identification Numbers
BT Advisor Funds
AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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3. Exact name of investment company as specified in registrations statement
See 1 above
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4. Address of principal executive office (number, street, city, state, zip code)
1 South street, Baltimore, Maryland 21202-3220
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in
compliance with Rule 17f-2 under the Act and applicable state law,
examines securities and similar investments in the custody of the
investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and
appropriate state securities administrators when filing the
certificate of accounting required by Rule 17f-2 under the Act and
applicable state law. File the original and one copy with the
Securities and Exchange Commission's principal offices in Washington,
D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and
one copy with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
