BT INVESTMENT FUNDS, N-30D, 1999-05-27

BT INVESTMENT FUNDS
N-30D, 1999-05-27

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March 31, 1999

[GRAPHIC] BT Mutual Funds

Global Emerging
Markets Equity Fund
Semi-Annual Report

Trust: BT Investment Funds

Investment Advisor: Bankers Trust Company

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Fund

Table of Contents
- --------------------------------------------------------------------------------

Letter to Shareholders .................................................... 3

Global Emerging Markets Equity Fund

Statement of Assets and Liabilities .................................... 6

Statement of Operations ................................................ 6

Statements of Changes in Net Assets .................................... 7

Financial Highlights ................................................... 8

Notes to Financial Statements .......................................... 9

Global Emerging Markets Equity Portfolio

Schedule of Portfolio Investments ...................................... 11

Statement of Assets and Liabilities .................................... 13

Statement of Operations ................................................ 13

Statements of Changes in Net Assets .................................... 14

Financial Highlights ................................................... 14

Notes to Financial Statements .......................................... 15

---------------------------

The Fund is not insured by the FDIC and is not a deposit,
obligation of or guaranteed by Bankers Trust Company. The Fund is
subject to investment risks, including possible loss of principal
amount invested.

---------------------------

<PAGE>

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Global Emerging Markets Equity Fund

Letter to Shareholders
- --------------------------------------------------------------------------------

We are pleased to present you with this semi-annual report for the BT Investment
Global Emerging Markets Equity Fund (the "Fund"), providing a review of the
markets, the Portfolio, and our outlook. Included are a complete financial
summary of the Fund's operations and a listing of the Portfolio's holdings.

MARKET ACTIVITY

Overall, equity markets in the emerging regions of Latin America, Asia, and
Eastern Europe reversed their sharp losses of the previous half-year, staging a
broad recovery as a result of a more favorable interest rate environment, led by
easier U.S. monetary policy, and evidence that economic conditions have
bottomed, particularly in Asia. In fact, after an extended period of
underperformance, emerging markets as a whole surprised investors by delivering
unusually strong performance during the six months ended March 31, up 32.7% in
U.S. dollar terms, outpacing even the S&P 500 Index's return of 27.3%. At the
same time, these markets experienced great volatility.

Reflecting recognition that the emerging market crises over the past two years
are nearing an end, Latin American markets returned 24.1%. This strong
performance was powered primarily by Mexico's 44.0% gain. Even Brazil's equity
market index delivered a 6.1% return, despite initiating the most recent
emerging market crisis with its January 1999 currency devaluation.

o Brazil experienced the most volatility in the region. Leading up to its
currency devaluation were several fundamental problems, including:

- overvaluation of the currency
- very high levels and very short maturity of government debt
- a rising fiscal deficit
- sharply falling reserves as capital flowed out of the country, thus
forcing the central bank to raise interest rates aggressively; this
compounded the underlying debt problem and made the situation even more
unsustainable
- uncertainty surrounding the Brazilian presidential election toward the
end of 1998.

Once the currency was devalued and later let to float freely, the Brazilian
real depreciated about 45% in a matter of weeks. While there were initial
fears that this would lead to bankruptcies, hyperinflation, and debt
defaults, the government was able to contain these pressures, and the
equity markets responded positively.

o Confidence in the Latin American region was buoyed in the first quarter of
1999.

- Inflation in Brazil and Mexico was lower than expected.
- The appointment of an ex-Wall Street fund manager, Arminio Fraga, as
Brazil's Central Bank governor boosted confidence.
- Brazil's government was successful in rolling over their outstanding
debt.
- Interest rates declined in the region, and even Brazil's central bank was
able to slowly reduce interest rates toward the end of the semi-annual
period.
- Oil and other commodity prices firmed, particularly crucial for Mexico,
Venezuela, Argentina, and Colombia.
- Growth in the U.S. economy was surprisingly strong.

Diversification of Portfolio Investments
By Asset Type as of March 31, 1999
(percentages are based on market value)

Mexico ............ 14%

Israel ............ 1%

Indonesia ......... 3%

India ............. 6%

Hungary ........... 2%

Hong Kong ......... 3%

Greece ............ 8%

Croatia ........... 1%

China ............. 1%

Chile ............. 6%

Philippines ....... 5%

Poland ............ 2%

South Africa ...... 10%

South Korea ....... 10%

Taiwan ............ 7%

Thailand .......... 3%

Turkey ............ 3%

Argentina ......... 4%

Brazil ............ 11%

Asian markets also experienced a stunning recovery after the massive declines
seen previously.

o Asian stock markets produced strong performance for the fourth calendar
quarter of 1998, with many markets up over 35%. Early in the period, the
region's markets were kept subdued by great uncertainty in Latin America,
particularly in Brazil. But as the situation in the rest of the emerging
markets improved, fundamentals in Asia also gained strength, driven by
several important factors. These included:

- rapidly improving liquidity conditions, as current accounts went heavily
into surplus, disbursements from international agencies, such as the
International Monetary Fund, continued, and foreign direct investment
accelerated

- interest rates globally and in Asia started to fall sharply to pre-crisis
levels; the U.S. Federal Reserve Board's two additional interest rate
cuts in the fourth quarter were particularly interpreted as a proactive
move to reduce global financial system risk

- sustained strengthening of the yen, which took pressure off currencies in
the region and improved the export competitiveness of other Asian
countries; the approval of the bank bailout legislation in Japan also
increased the chance of further fiscal stimulus

- signs began to emerge that economic activity was stabilizing,
particularly in South Korea, Thailand, the Philippines, and Singapore,
thus enhancing growth prospects for these markets

- --------------------------------------------------------------------------------
Ten Largest Stock Holdings
- --------------------------------------------------------------------------------

South African Breweries Mahanagar Telephone Nigam Ltd.
- --------------------------------------------------------------------------------
SK Telecom Co., Ltd. ADR Kimberly Clark de Mexico SA
de CV ADR
- --------------------------------------------------------------------------------
Taiwan Semiconductor Telefonos de Mexico SA ADR
Manufacturing Co. Ltd.
- --------------------------------------------------------------------------------
Hellenic Telecommunication Fomento Economico Mexicano
Organization SA SA ADR
- --------------------------------------------------------------------------------
Alpha Credit Bank I.T.C. Ltd. GDR
- --------------------------------------------------------------------------------

<PAGE>
- --------------------------------------------------------------------------------
Global Emerging Markets Equity Fund

Letter to Shareholders
- --------------------------------------------------------------------------------

- with confidence returning, fund managers reinvested high cash balances,
generating strong demand for Asian stocks.

o After initial nervousness during the corporate results season and
short-term resumption of yen weakness, the rally continued into the first
quarter of 1999. Fears of an imploding yen subsided as the equity markets
focused on positives, including:

- Japan's reflation efforts and restructuring initiatives

- interest rates that continued to fall in Asia, despite the backup in U.S.
bond yields

- more signs of regional recovery, such as positive growth in industrial
output, bottoming retail sales, and resumption of import growth for the
crisis countries.

Emerging Europe was even more impressive, up 43.6% for the semi-annual period.
Interestingly, the worst hit markets from the previous year experienced the
largest rebounds, with Russia and Turkey up 174.7% and 58.4%, respectively.
Greece, still on track to join European economic and monetary union (EMU) in
2001, returned 40.0%. Hungary and Poland gave back part of their early gains due
to currency pressures and concerns over deteriorating current account deficits.
While advantageous to the emerging markets as a whole, lower interest rates from
the U.S. and core European central banks particularly boosted this region's
emerging equity markets.

By the end of March, international interest in the emerging markets was booming,
with international investors returning in force. Given the low market
capitalizations and liquidity of these markets, it only took a modest amount of
international interest to lead to explosive gains in many of the region's equity
markets. Ongoing strong equity markets in most of the developed world and a
strong upward revision in world growth prospects led by the U.S. further
supported improving local emerging market trends.

There were only two real disappointments over the semi-annual period.

o The deterioration in the political situation in Kosovo, which did have some
negative impact on some of the European emerging markets, such as Greece,
Poland, Hungary, and the Czech Republic.
o The political situation in Indonesia, where social unrest escalated
sharply, leading up to the election in June 1999. Interestingly though, the
strong positive impact of stabilizing growth, improving liquidity, and
rising commodity prices overwhelmed this negative development. The equity
market there rose strongly during the semi-annual period.

INVESTMENT REVIEW

The Fund outperformed its category average and only slightly underperformed its
benchmark for the six months ended March 31, 1999. Since the Fund's inception,
it has outperformed both. Having a positive impact on Fund performance were
overweight positions in Hong Kong, Malaysia, and Croatia; underweight positions
in India, Argentina, Brazil, Venezuela, and South Africa; and strong stock
selection in Taiwan, Mexico, and Poland. Detracting from performance somewhat
were overweight positions in the Philippines, Mexico, Hungary and cash;
underweight positions in South Korea, Taiwan, Chile, and Russia; and stock
selection in Hong Kong, South Korea, Brazil, Turkey, and South Africa.

- --------------------------------------------------------------------------------
Periods ended March 31, 1999 Cumulative Total Returns
- --------------------------------------------------------------------------------
Past 6 Since
months inception
- --------------------------------------------------------------------------------
BT Investment Global Emerging
Markets Equity Fund(1) 31.84% 6.00%
(inception 6/30/98)
- --------------------------------------------------------------------------------
MSCI International Emerging
Market Free Index(2) 32.66% 3.47%
- --------------------------------------------------------------------------------
Lipper Emerging Markets Average(3) 22.06% (6.76)%
- --------------------------------------------------------------------------------

During the semi-annual period, we reduced the Fund's cash position. Having built
up the cash level when the emerging equity markets were in severe decline, we
are now seeking to be fully invested in stocks.

We increased the Fund's allocation to Latin America, particularly Brazil,
Argentina, and Chile. Favorable domestic developments highlighted attractive
valuations in the region, even amidst the Brazilian crisis. Particularly strong
performers were Grupo Televisa, a TV operator, and Fomento Economico Mexico, a
beverages company, which both released stronger than expected earnings.

We increased the Fund's allocation to South Korea, in the Asian region, and to
Greece, in emerging Europe. There were signs during the six months that South
Korea's economy might be bottoming, and we are optimistic that its equity market
will produce strong returns. Greece's market was subject to some valuation
concerns, but we still find this market attractive long term for future EMU
convergence. We focused on defensive utilities and financial stocks in Greece,
adding stocks to the portfolio such as Alpha Credit Bank and Hellenic Telecom.

We decreased the Fund's allocation to Malaysia. Having already limited our
investments in this market given the Malaysian government's implementation of
capital controls on September 1, 1998 that prevent international investors from
repatriating funds from the sale of assets for one year, we reduced our holdings
there, as we view this market as particularly vulnerable.

We increased the Fund's holdings in economic-sensitive cyclical stocks. These
include paper companies Aracruz in Brazil and Indah Kiat in Indonesia and cement
companies Cemex in Mexico, Semen Gresik in Indonesia, and Siam City Cement in
Thailand.

- ------------------
(1) Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.

(2) Indexes are unmanaged, and investments cannot be made in an index. During
the period the Fund waived certain fees and expenses. Had these fees and
expenses not been waived, the Fund's return would have been lower.

(3) Lipper figures represent the average of the total returns reported by all
of the mutual funds designated by Lipper Analytical Services, Inc. as
falling into the respective categories indicated. These figures do not
reflect sales charges.

<PAGE>

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Global Emerging Markets Equity Fund

Letter to Shareholders
- --------------------------------------------------------------------------------

MANAGER OUTLOOK

We are becoming increasingly positive on the outlook for most emerging equity
markets, and thus seeking to move toward full investment in the emerging equity
markets, as several factors should be supportive.

Confidence has returned to Asian markets, as these economies begin to bottom and
attract capital. European and North American investors have quickly supplanted
Japanese investment into the region, indirectly through security purchases and
directly through acquisition of real assets. We remain optimistic for the region
despite ongoing concerns over the Japanese economy and currency. We believe
Asian reflation will continue due to strong liquidity resulting from
expansionary monetary policy, large current account surpluses, and increasing
capital inflows. Restructuring at the macro and micro levels will likely provide
profitability improvements even if overall global growth is weak. Prospects for
ongoing Asian growth recovery is good. On a sector basis, the Fund intends to
remain biased towards:

o utilities, such as telecommunication and infrastructure companies, which
tend to have more stable cash flows
o domestic consumer franchises, which have a brand name, established
distribution networks, and tend to be fairly defensive in nature, and
o electronics companies, which have low cost bases and are well positioned,
we believe, to benefit from further U.S. outsourcing.

While we consider most Latin American markets to be a little ahead of themselves
in the short term, the prospects for the region are optimistic. Specifically,
prospects are positive for corporate restructurings, a reduced Brazilian risk
profile, and in the second half of 1999, a likely turn in the growth momentum of
Latin America as a whole. Given our global bias towards upside growth risks, we
believe Latin America, and especially Brazil, will be a prime beneficiary of
still compelling valuations and interest rates with room to fall. We also
believe that short-term risks are highest in this region, as a number of
specific corporate problems may surface in the next few months.

We remain optimistic on emerging Europe, as several of these markets are on
probable EMU convergence paths. However, optimism near term must be tempered by
the crisis in Kosovo. A prolonged military engagement, beyond the human
hardship, could undermine consumer confidence and be detrimental to stability
and growth in the region.

In short, worldwide financial markets have become more risk tolerant with
cyclicals and emerging markets performing again. While the global economic
environment is not ideal, what is important for emerging markets is that global
liquidity is strong, global interest rates remain low, stock valuations in
general remain attractive, Organization for Economic Cooperation and Development
(OECD) GDP upgrades have begun to come through, and commodity prices have
bottomed.

We will continue to monitor economic conditions and their effect on financial
markets as we seek long-term capital growth.

We value your support of the Global Emerging Markets Equity Fund and look
forward to serving your investment needs in the years ahead.

/s/ Paul Durham
Paul Durham
Portfolio Manager of the
Global Emerging Markets Equity Portfolio
March 31, 1999

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Performance Comparison
- --------------------------------------------------------------------------------

Comparison of Change in Value of a $10,000 Investment in the BT Investment
Global Emerging Markets Fund and the MSCI International Emerging Market Free
Index since June 30, 1998.

Total Return for the Periods
Ended March 31, 1999(2)

Six Months Since 6/30/98(1)
---------- ----------------
31.84% 6.00%

(1) The Fund's inception date.
(2) Unaudited.

Investment return and principal value may fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.

[GRAPHIC]

In the printed version of the document, a line graph appears which depicts the
following plot points:

BT Investment MSCI International
Global Emerging Emerging Market
Markets Fund - $10,600 Free Index - $10,347
---------------------- --------------------

Jun-98 ............ 10,000 10,000
Sep-98 ............ 8,040 7,799
Dec.-98 ........... 9,190 9,202
Mar-99 ............ 10,600 10,347

Past performance is not indicative of future performance. Performance figures
assume the reinvestment of dividends and capital gain distributions.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Fund

Statement of Assets and Liabilities March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets
Investment in Global Emerging Markets Equity Portfolio, at Value ......... $ 2,728,329
Prepaid Expenses ......................................................... 13,331
-----------
Total Assets ................................................................ 2,742,660
-----------
Liabilities
Due to Bankers Trust ..................................................... 15,594
Accrued Expenses and Other ............................................... 25,424
-----------
Total Liabilities ........................................................... 41,018
-----------
Net Assets .................................................................. $ 2,700,642
===========
Composition of Net Assets
Paid-in Capital .......................................................... $ 2,471,193
Undistributed Net Investment Income ...................................... 15,659
Accumulated Net Realized Loss from Investment, Foreign Currency and
Forward Foreign Currency Transactions ................................. (16,247)
Net Unrealized Appreciation on Investment, Foreign Currencies and
Forward Foreign Currency Contracts .................................... 230,037
-----------
Net Assets .................................................................. $ 2,700,642
===========
Net Asset Value, Offering and Redemption Price Per Share
(net assets divided by shares outstanding) ................................. $ 10.60
===========
Shares Outstanding ($0.001 par value per share, unlimited number of shares of
beneficial interest authorized) .......................................... 254,843
===========
</TABLE>

- --------------------------------------------------------------------------------
Statement of Operations For the six months ended March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Investment Income
Income Allocated from Global Emerging Markets Equity Portfolio, net .................... $ 18,121
---------
Expenses
Professional Fees ...................................................................... 12,371
Administration and Services Fees ....................................................... 10,291
Printing and Shareholder Reports ....................................................... 6,370
Trustees Fees .......................................................................... 2,139
Registration Fees ...................................................................... 989
Miscellaneous .......................................................................... 5,104
---------
Total Expenses ......................................................................... 37,264
Less Expenses absorbed by Bankers Trust ................................................ (27,802)
---------
Net Expenses ........................................................................ 9,462
---------
Net Investment Income ..................................................................... 8,659
---------
Realized and Unrealized Gain (Loss) on Investment, Foreign Currency
and Forward Foreign Currency Contracts
Net Realized Gain (Loss) from:
Investment Transactions ............................................................. 6,369
Foreign Currency Transactions ....................................................... (10,282)
Forward Foreign Currency Transactions ............................................... 33,442
Net Change in Unrealized Appreciation/Depreciation on Investment, Foreign Currencies and
Forward Foreign Currency Contracts ................................................ 585,481
---------
Net Realized and Unrealized Gain on Investment, Foreign Currency and
Forward Foreign Currency Contracts ..................................................... 615,010
---------
Net Increase in Net Assets from Operations ................................................ $ 623,669
=========
</TABLE>

See Notes to Financial Statements.

<PAGE>

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Global Emerging Markets Equity Fund

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

For the period
For the six June 30, 1998(1)
months ended through
March 31, 1999(2) September 30, 1998
----------------- --------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income ........................................... $ 8,659 $ 6,404

Net Realized Gain (Loss) from Investment, Foreign Currency and
Forward Foreign Currency Transactions ........................ 29,529 (143,949)
Net Change in Unrealized Appreciation/Depreciation on Investment,
Foreign Currency and Forward Foreign Currency Contracts ...... 585,481 (355,445)
----------- -----------
Net Increase (Decrease) in Net Assets from Operations .............. 623,669 (492,990)
----------- -----------
Capital Transactions in Shares of Beneficial Interest
Proceeds from Sales of Shares ................................... 235,635 2,586,798
Dividend Reinvestments .......................................... -- --
Cost of Shares Redeemed ......................................... (95,920) (156,550)
----------- -----------
Total Increase from Capital Transactions in Shares of
Beneficial Interest ............................................. 139,715 2,430,248
----------- -----------
Total Increase in Net Assets ....................................... 763,384 1,937,258
Net Assets
Beginning of Period ................................................ 1,937,258 --
----------- -----------
End of Period (including undistributed net investment income of
$15,659, and $7,000, respectively) ............................. $ 2,700,642 $ 1,937,258
=========== ===========
</TABLE>

- --------------
(1) Commencement of operations
(2) Unaudited

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Fund

Financial Highlights
- --------------------------------------------------------------------------------

Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for the period
indicated for the Global Emerging Markets Equity Fund.

<TABLE>
<CAPTION>
For the period
For the six June 30, 1998(3)
months ended through
March 31, 1999(1) September 30, 1998
----------------- ------------------
<S> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ...................................... $ 8.04 $ 10.00
------------- ------------
Income from Investment Operations
Net Investment Income .................................................. 0.03 0.03
Net Realized and Unrealized Gain (Loss) on Investment,
Foreign Currency, and Forward Foreign Currency Contracts ............ 2.53 (1.99)
------------- ------------
Total Gain (Loss) from Investment Operations .............................. 2.56 (1.96)
------------- ------------
Net Asset Value, End of Period ............................................ $ 10.60 $ 8.04
============= ============
Total Investment Return ................................................... 31.84% (19.60)%
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) ............................... $ 2,701 $ 1,937
Ratios to Average Net Assets:
Net Investment Income ............................................... 0.75%(2) 1.67%(2)
Expenses, Including Expenses of the
Global Emerging Markets Portfolio ................................. 1.90%(2) 1.90%(2)
Decrease Reflected in Above Expense Ratio Due
to Absorption of Expenses by Bankers Trust ........................ 4.08%(2) 10.64%(2)
</TABLE>

- -------------------
(1) Unaudited
(2) Annualized
(3) Commencement of operations

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Fund

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 Massachusetts business trust
under the laws of the Commonwealth of Massachusetts. Global Emerging Markets
Equity Fund (the "Fund") is one of the funds offered to investors by the Trust.
The Fund commenced operations and began offering shares of beneficial interest
on June 30, 1998. The Fund invests substantially all of its assets in the Global
Emerging Markets Equity Portfolio (the "Portfolio"). The Portfolio is an
open-end management investment company registered under the Act. The Fund seeks
to achieve its investment objective by investing all of its investable assets in
the Portfolio. The value of such investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio. At March 31, 1999,
the Fund's investment was approximately 97.5% of the Portfolio.

The financial statements of the Portfolio, including a list of assets held are
contained elsewhere in this report and should be read in conjunction with the
Fund's financial statements.

B. Investment Valuation

Valuation of securities by the Portfolio is discussed in Note 1A of the
Portfolio's Notes to Financial Statements which are included elsewhere in this
report.

C. Investment Income

The Fund earns income, net of expenses, daily on its investment in the
Portfolio. All of the net investment income and realized and unrealized gains
and losses from security transactions of the Portfolio are allocated pro rata
among the investors in the Portfolio at the time of such determination.

D. Distributions

It is the Fund's policy to declare and distribute dividends annually to
shareholders from net investment income. Dividends and distributions payable to
shareholders are recorded by the Fund on the ex-dividend date. Distributions of
net realized short-term and long-term capital gains, if any, earned by the Fund
are also made annually to the extent they are not offset by any capital loss
carryforwards.

E. Federal Income Taxes

It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required. The Fund may periodically make reclassifications among certain of its
capital accounts as a result of the differences in the characterization and
allocation of certain income and capital gain distributions determined annually
in accordance with federal tax regulations which may differ from generally
accepted accounting principles. The Fund had a capital loss carry forward in the
amount of $45,776 expiring in 2006.

F. Other

The Trust accounts separately for the assets, liabilities, and operations of
each Fund. Expenses directly attributable to the Fund are charged to that Fund,
while expenses which are attributable to all of the Trust's Funds are allocated
among them. Investment transactions are accounted for on the trade date basis.
Realized gains and losses are determined on the identified cost basis.

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

The 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 the Fund in return for a fee computed daily and paid
monthly at an annual rate of .90% of the Fund's average daily net assets.

Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Fund, to the extent necessary, to limit all expenses to 0.80% of
the average daily net assets of the Fund, excluding expenses of the Portfolio
and 1.90% of the average daily net assets of the Fund, including expenses of the
Portfolio.

ICC Distributors, Inc., a member of the Forum Group of Companies, provides
distribution services to the Fund.

Bankers Trust Company is a wholly owned subsidiary of Bankers Trust Corporation.
On November 30, 1998, Bankers Trust Corporation entered into an Agreement and
Plan of Merger with Deutsche Bank AG under which Bankers Trust Corporation would
merge with and into a subsidiary of Deutsche Bank AG. Deutsche Bank AG is a
major global banking institution that is engaged in a wide range of financial
services, including investment management, mutual funds, retail and commercial
banking, investment banking and insurance. The transaction is contingent upon
various regulatory approvals, and continuation of the Fund's advisory
relationship with Bankers Trust thereafter is subject to the approval of Fund
shareholders. If the transaction is approved and completed, Deutsche Bank AG, as
Bankers Trust's new parent company, will control its operations as investment
adviser. Bankers Trust believes that, under this new arrangement, the services
provided to the Fund will be maintained at their current level.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Fund

Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------

Note 3--Shares of Beneficial Interest

At March 31, 1999, there were an unlimited number of shares of beneficial
interest authorized. Transactions in shares of beneficial interest were as
follows:

For the period
June 30, 1998
(Commencement
For the six months ended of Operations)
March 31, 1999(1) to September 30, 1998
------------------------- ---------------------
Shares Amount Shares Amount
----------- ---------- --------- ----------
Sold 25,233 $235,635 261,126 $2,586,798
Reinvested -- -- -- --
Redeemed (11,305) (95,920) (20,210) (156,550)
----------- ---------- --------- ----------
Net Increase 13,928 $139,715 240,916 $2,430,248
=========== ========== ========= ==========

- -------------
(1) Unaudited

Note 4--Risks of Investing in Emerging Markets

The risks involved when investing in emerging markets are of a nature generally
not encountered when investing in securities traded on major international
markets.

Investment in securities of issuers based in underdeveloped emerging markets
involves special risks and considerations not typically associated with
investing in U.S. companies. These risks include: (i) greater risks of
expropriation, confiscatory taxation, nationalization, and less social,
political and economic stability; (ii) the smaller size of the market for such
securities and a low or nonexistent volume of trading, resulting in lack of
liquidity and in price volatility. Additionally, developments affecting emerging
market investments cannot always be foreseen.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Schedule of Portfolio Investments March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------

Shares Description Value
------ ----------- -----

COMMON STOCKS - 95.2%
Argentina - 4.3%
1,830 Banco de Galicia SA (a) ........................ $29,394
2,697 Quilmes Industrial SA (Quinsa) ................. 25,453
1,338 Telefonica de Argentina SA ADR ................. 40,475
792 Y.P.F. Sociedad Anonima ADR .................... 24,997
-------
120,319
-------
Brazil - 10.8%
2,116 Aracruz Celulose SA ADR ........................ 30,682
916 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar ........................... 13,397
1,450 Cemig SA ADR ................................... 32,806
2,018 Companhia Cervejaria Brahma ADR ................ 18,793
4,987 Companhia Paranaense de Energia-Copel .......... 37,403
1,903 Companhia Vale do Rio Doce ADR ................. 27,740
2,975 Centrais Electricas Brasileiras SA ADR ......... 28,968
1,695 Embratel Participacoes ADR (a) ................. 28,285
2,070 Petroleo Brasiliero SA ADR ..................... 28,834
2,095 Tele Norte Leste Participacoes SA (a) .......... 32,211
1,127 Telesp Participacoes SA ........................ 23,244
-------
302,363
-------
Chile - 3.9%
2,154 Banco de A. Edwards ADR (a) .................... 24,502
1,094 Cia de Telecomunicaciones de Chile
SA ADR ........................................ 25,777
1,017 Enersis SA ADR ................................. 27,268
3,233 Quinenco SA ADR ................................ 32,128
-------
109,675
-------
China - 0.5%
1,300 Huaneng Power Intl ADR ......................... 12,919
-------
Croatia - 0.8%
1,479 Pliva D.d. GDR ................................. 23,286
-------
Greece - 7.9%
1,210 Alpha Credit Bank .............................. 80,517
3,546 Hellenic Telecommunication
Organization SA ............................... 86,237
2,041 Panafon Hellenic Telecom SA .................... 53,121
-------
219,875
-------
Hong Kong - 3.2%
7,000 China Telecom (Hong Kong) Ltd. ................. 11,653
7,000 Dao Heng Bank Group Ltd. ....................... 23,125
51,000 First Pacific Co. Ltd. (a) ..................... 30,604
8,000 Guoco Group Ltd. ............................... 14,092
4,000 Smartone Telecommunications
Holdings Ltd. ................................. 11,589
-------
91,063
-------
Hungary - 1.9%
862 Matav RT ADR ................................... 23,059
1,376 Mol Magyar Olaj es, GDR 144A (b) ............... 29,378
-------
52,437
-------
India - 5.6%
2,000 I.T.C. Ltd. GDR ................................ 54,500
2,800 Industrial Credit & Investment Corp ............ 17,430
1,000 Larsen and Toubro GDR .......................... 10,375
5,910 Mahanagar Telephone Nigam Ltd. ................. 62,794
1,400 Videsh Sanchar Nagam Ltd. ...................... 12,670
-------
157,769
-------

Shares Description Value
------ ----------- -----

Indonesia - 3.0%
26,000 PT Indah Kiah Pulp & Paper
Corporation TBK ............................... $ 7,364
50,000 PT Indofood Sukses Makmu TBK (a) ............... 31,214
55,000 PT Bank Pan Indonesia TBK ...................... 2,861
36,500 PT Semen Gresik (Persero) TBK .................. 41,564
-------
83,003
-------
Israel - 1.0%
11,834 Bank Hapoalim Ltd. ............................. 27,777
-------
Mexico - 11.5%
3,510 Cemex "B" ADR .................................. 29,477
3,296 Cifra SA de CV ADR V (a) ....................... 51,000
1,904 Fomento Economico Mexicano SA ADR .............. 58,905
14,740 Grupo Financiero Banamex Accival SA
de CV ......................................... 29,710
941 Grupo Televisa SA GDR (a) ...................... 29,524
16,541 Kimberly Clark de Mexico SA de CV ADR .......... 62,289
942 Telefonos de Mexico SA ADR ..................... 61,701
-------
322,606
-------
Peru - 1.7%
3,580 Compania de Minas Buenaventura SA ADR .......... 47,435
-------
Philippines - 4.4%
335,000 Digital Telecom Philippines (a) ................ 8,852
277,000 Metro Pacific Corp. (a) ........................ 13,491
5,600 Philippine Commercial International Bank ....... 31,772
1,700 Phillipine Long Distance Telephone ............. 44,922
14,500 San Miguel Corp. Class B ....................... 24,229
----------
123,266
----------
Poland - 2.3%
1,922 Agora SA GDR (a) ............................... 20,758
7,913 Telekomunikacja Polska SA GDR .................. 42,968
----------
63,726
----------
South Africa - 9.5%
10,430 ABSA Group Ltd. ................................ 49,933
285 Edgars Stores Ltd. ............................. 1,471
1,876 Liberty Life Association of Africa Ltd. ........ 23,260
38,366 Sanlam Ltd. (a) ................................ 33,248
7,008 Sappi Ltd. ..................................... 29,683
6,238 Sasol Ltd. Npv ................................. 30,876
11,244 South African Breweries ........................ 97,623
----------
266,094
----------
South Korea - 10.0%
2,656 Amkor Technology, Inc. (a) ..................... 20,916
2,600 Housing & Commercial Bank, Korea ............... 51,915
1,800 Kepco ADR ...................................... 22,838
2,525 Pohang Iron & Steel Co. Ltd. ................... 45,134
1,248 Samsung Electronics ............................ 48,485
7,449 SK Telecom Co., Ltd. ADR ....................... 90,785
----------
280,073
----------
Taiwan - 6.9%
610 Ase Test Ltd. (a) .............................. 24,095
3,100 Asustek Computer Inc. .......................... 28,365
3,450 Fubon Insurance Co. LD GDR (b) ................. 33,293
3,770 Taiwan Semiconductor Manufacturing
Co. Ltd. ...................................... 89,066
8,000 Total Access Communication Public
Co. Ltd. (a) .................................. 17,280
----------
192,099
----------

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Schedule of Portfolio Investments March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------

Shares Description Value
------ ----------- -----

Thailand - 3.3%
10,000 Bangkok Bank Public Co. Ltd. (a) ............... $ 20,517
17,000 Shin Corporation Public Co. Ltd. ............... 44,391
8,400 Siam City Cement Public Co. .................... 28,425
----------
93,333
----------
Turkey - 2.7%
2,912,700 Hurriyet Gazetecilik Ve Matbaacilik AS ......... 49,255
265,991 Vestel Elektronik Sanayi ve Ticaret AS ......... 25,346
----------
74,601
----------
Total Common Stocks (Cost $2,384,062) .......................... 2,663,719
----------
PREFERRED STOCKS - 1.0%
Mexico - 1.0%
1,020 Desc SA de CV ADR .............................. 27,221
----------
Total Preferred Stocks (Cost $22,038) .......................... 27,221
----------
Total Investments (Cost $2,406,100) ...................... 96.1% 2,690,940
Other Assets in Excess of Liabilities .................... 3.9% 108,409
----- ----------
Net Assets 100.0% $2,799,349
===== ==========

- ----------------
(a) Non-Income Producing Security
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. This Security may be resold in transactions exempt from registrations,
normally to qualified institutional buyers.

The following abbreviations are used in portfolio descriptions:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt

Industry Diversification (as a percentage of Total Investments):

% of
Industry Market Value
-------- ------------

Banks ............................. 12.42%
Beverages ......................... 7.67%
Broadcasting ...................... 1.10%
Cement ............................ 3.70%
Computer Services and Software .... 2.70%
Diversified ....................... 3.34%
Electrical ........................ 2.94%
Electronics ....................... 6.65%
Foods ............................. 1.16%
Insurance ......................... 3.34%
Manufacturing ..................... 1.33%
Metals & Mining ................... 5.42%
Oil-International ................. 3.17%
Paper & Forest Products ........... 4.83%
Pharmaceuticals ................... 1.37%
Printing & Publishing ............. 1.83%
Steel ............................. 1.68%
Telecommunications ................ 29.06%
Tobacco ........................... 2.03%
Utility ........................... 3.56%
Other(1) .......................... 0.70%
------
Total ............................. 100.00%
======

(1) No one industry represents more than 1% of Portfolio Holdings

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Statement of Assets and Liabilities March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets
Investments, at value (cost of $2,406,100) ............................. $ 2,690,940
Cash(1) ................................................................ 184,609
Receivable for Securities Sold ......................................... 76,668
Unrealized Appreciation on Forward Currency Contracts .................. 60,820
Dividends and Interest Receivable ...................................... 10,393
-----------
Total Assets .............................................................. 3,023,430
-----------
Liabilities
Due to Bankers Trust ................................................... 5,087
Payable for Securities Purchased ....................................... 110,869
Net Unrealized Depreciation on Forward Currency Contracts .............. 94,087
Accrued Expenses and Other ............................................. 14,038
-----------
Total Liabilities ......................................................... 224,081
-----------
Net Assets ................................................................ $ 2,799,349
===========
Composition of Net Assets
Paid-in Capital ........................................................ $ 2,510,546
Undistributed Net Investment Income .................................... 18,644
Accumulated Net Realized Gain from Investments, Foreign Currency
and Forward Foreign Currency Transactions ............................ 30,371
Net Unrealized Appreciation on Investments, Foreign Currencies and
Forward Foreign Currency Contracts .................................. 239,788
-----------
Net Assets ................................................................ $ 2,799,349
===========
</TABLE>

- -----------
(1) Includes Foreign Cash of $80,652 with a cost of $92,438.

<TABLE>
<S> <C>
Investment Income
Dividends (net of foreign withholding tax of $753) ..................... $ 25,373
Interest ............................................................... 6,588
-----------
Total Investment Income ................................................... 31,961
-----------
Expenses
Professional Fees ...................................................... 13,763
Advisory Fees .......................................................... 13,120
Administration and Services Fee ........................................ 1,789
Trustees Fees .......................................................... 1,622
Foreign Custody Fees ................................................... 1,469
Miscellaneous .......................................................... 919
-----------
Total Expenses ......................................................... 32,682
Less Expenses absorbed by Bankers Trust ................................ (19,365)
-----------
Net Expenses ........................................................ 13,317
-----------
Net Investment Income ..................................................... 18,644
-----------
Realized and Unrealized Gain (Loss) on Investments, Foreign Currencies,
and Forward Foreign Currency Contracts
Net Realized Gain (Loss) from:
Investment Transactions ............................................. 6,376
Foreign Currency Transactions ....................................... (10,525)
Forward Foreign Currency Transactions ............................... 34,520
Net Change in Unrealized Appreciation/Depreciation on Investments,
Foreign Currencies and Forward Foreign Currency Contracts ........ 596,050
-----------
Net Realized and Unrealized Gain on Investments, Foreign Currencies
and Forward Foreign Currency Contracts .................................. 626,421
-----------
Net Increase in Assets from Operations .................................... $ 645,065
===========
</TABLE>

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

For the period
For the six June 30, 1998(1)
months ended through
March 31, 1999(2) September 30, 1998
----------------- ------------------
<S> <C> <C>

Increase (Decrease) in Net Assets from:
Operations
Net Investment Income ................................................. $ 18,644 $ 9,514
Net Realized Gain (Loss) from Investments, Foreign Currency, and
Forward Foreign Currency Transactions .............................. 30,371 (145,560)
Net Change in Unrealized Appreciation/Depreciation on Investments,
Foreign Currencies, and Forward Foreign Currency Contracts ......... 596,050 (356,263)
----------- -----------
Net Increase (Decrease) in Net Assets from Operations .................... 645,065 (492,309)
----------- -----------
Capital Transactions
Proceeds from Capital Invested ........................................ 283,267 2,616,975
Value of Capital Withdrawn ............................................ (96,526) (157,122)
----------- -----------
Net Increase in Net Assets from Capital Transactions ..................... 186,741 2,459,853
----------- -----------
Total Increase in Net Assets ............................................. 831,806 1,967,543
Net Assets
Beginning of Period ...................................................... 1,967,543 --
----------- -----------
End of Period ............................................................ $ 2,799,349 $ 1,967,543
=========== ===========
</TABLE>

- ------------------
(1) Commencement of operations
(2) Unaudited

- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------

Contained below are selected ratios to average net assets and other supplemental
data for the period indicated for the Global Emerging Markets Equity Portfolio.

For the period
June 30, 1998(2)
For the six through
months ended September 30,
March 31, 1999(1) 1998
----------------- ----------------
<S> <C> <C>

Supplemental Data and Ratios:
Net Assets, End of Year (000s omitted) ...................................... $2,799 $1,968
Ratios to Average Net Assets:
Net Investment Income .................................................... 1.56%(3) 2.30%(3)
Expenses ................................................................. 1.10%(3) 1.10%(3)
Decrease Reflected in Above Expense Ratio Due
to Absorption of Expenses by Bankers Trust ............................. 1.63%(3) 5.71%(3)
Portfolio Turnover Rate ..................................................... 103% 38%
</TABLE>

- -----------------
(1) Unaudited
(2) Commencement of operations
(3) Annualized

See Notes to Financial Statements.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------

Note 1--Organization and Significant Accounting Policies

A. Organization

The Global Emerging Markets Equity Portfolio (the "Portfolio") is registered
under the Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio is a subtrust or "series" of BT
Investment Portfolios. The BT Investment Portfolios were organized on October 8,
1997 as a master trust fund under the laws of The State of New York and
commenced operations on June 30, 1998. The Declaration of Trust permits the
Board of Trustees (the "Trustees") to issue beneficial interests in the
Portfolio.

B. Security Valuation

The Portfolio's investments listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the closing price of the
security traded on that exchange prior to the time when the Portfolio assets are
valued. Short-term debt securities are valued at market value until such time as
they reach a remaining maturity of 60 days, whereupon they are valued at
amortized cost using their value on the 61st day. All other securities and other
assets are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Trustees.

On February 9, 1999, the Malaysian Government implemented an exit tax system
whereby funds brought into Malaysia prior to February 15, 1999 may be subject to
an exit tax depending on the holding period of such funds. Accordingly,
management has fair valued its Malaysian securities and cash positions based
upon the period such assets were held and the applicable rate of tax that
applies.

C. Security Transactions and Interest Income

Security transactions are accounted for on a trade date basis. Dividend income,
less foreign taxes withheld, if any, is recorded on the ex-dividend date or upon
receipt of ex-dividend notification in the case of certain foreign securities.
Interest income is recorded on the accrual basis and includes amortization of
premium and discount on investments. Expenses are recorded as incurred. 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 and foreign currency transactions of the Portfolio are
allocated pro rata among the investors in the Portfolio at the time of such
determination.

D. Repurchase Agreements

The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Advisers, 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 Portfolio's 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 Portfolio maintains 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. Foreign Currency Transactions

The books and records of the Portfolio are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at prevailing exchange rates. Purchases and sales of
investment securities, dividend and interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective dates of such
transactions.

F. Forward Foreign Currency Contracts

The Portfolio may enter into forward foreign currency contracts for the purpose
of settling specific purchases or sales of securities denominated in a foreign
currency or with respect to the Portfolio's investments. The net U.S. dollar
value of foreign currency underlying all contractual commitments held by the
Portfolio and the resulting unrealized appreciation or depreciation are
determined using prevailing exchange rates. With respect to forward foreign
currency contracts, losses in excess of amounts recognized in the Statement of
Assets and Liabilities may arise due to changes in the value of the foreign
currency or if the counterparty does not perform under the contract.

G. Option Contracts

Upon the purchase of a put option or a call option by a Portfolio, the premium
paid is recorded as an investment and marked-to-market daily to reflect the
current market value. When a purchased option expires, the Portfolio will
realize a loss in the amount of the cost of the option. When the Portfolio
enters into a closing sale transaction, the Portfolio will realize a gain or
loss depending on whether the sale proceeds from the closing sale transaction
are greater or less than the cost of the option. When the Portfolio exercises a
put option, it realizes a gain or loss from the sale of the underlying security
and the proceeds from such sale will be decreased by the premium originally
paid. When the Portfolio exercises a call option, the cost of the security which
the Portfolio purchases upon exercise will be increased by the premium
originally paid.

H. Futures Contracts

The Portfolio may enter into financial futures contracts which are contracts to
buy a standard quantity of securities at a specified price on a future date. The
Portfolio is required to make initial margin deposits either in cash or
securities in an amount equal to a certain percentage of the contract amount.
Variation margin payments are made or received by the Portfolio each day,
dependent on the daily fluctuations in the value of the underlying security, and
are recorded for financial statement purposes as unrealized gains or losses by
the Portfolio.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------

Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.

I. Federal Income Taxes

The Portfolio is considered a partnership under the Internal Revenue Code.
Therefore, no federal income tax provision is necessary.

J. Other

Note 2--Fees and Transactions with Affiliates

The Portfolio 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 the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of .15% of the Portfolio's average daily net
assets.

The 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 1.10% of the Portfolio's
average daily net assets.

Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Portfolio, to the extent necessary, to limit all expenses to
1.00% of the average daily net assets of the Portfolio.

The Portfolio may invest in the BT Institutional Cash Management Fund ("the
Fund"), an open-end management investment company managed by Bankers Trust
Company ("the Company"). The fund is offered as a cash management option to the
Portfolio and other accounts managed by the Company.

The Portfolio is a participant with other affiliated entities in a revolving
credit facility 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 calendar quarter 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 six months ended March 31, 1999.

Note 3--Purchases and Sales of Investment Securities

The aggregate cost of purchases and proceeds from sales of investments, other
than short-term obligations, for the six months ended March 31, 1999, were
$2,710,368 and $2,161,905, respectively.

For federal income tax purposes, the tax basis of investments held at March 31,
1999 was $2,506,967. The aggregate gross unrealized appreciation for all
investments was $369,895 and the aggregate gross unrealized depreciation for all
investments was $148,533.

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------

Note 4--Open Forward Foreign Currency Contracts

At March 31, 1999, the Global Emerging Markets Portfolio had the following open
forward foreign currency contracts outstanding:

<TABLE>
<CAPTION>
Net Unrealized
Appreciation
Contracts to Deliver In Exchange For Settlement Date Value (US$) (Depreciation) (US$)
- ------------------------------------------------------------------------------------------------------------------------------------
Sales
- ------------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Brazilian Real 274,505 US Dollar 126,500 4/6/99 157,039 $ (30,539)
Brazilian Real 278,933 US Dollar 126,500 4/6/99 159,572 (33,072)
Hong Kong Dollar 70,000 US Dollar 9,034 4/1/99 9,033 --
Hong Kong Dollar 15,503 US Dollar 2,000 4/30/99 2,000 --
Hong Kong Dollar 19,000 US Dollar 2,408 2/24/00 2,420 (12)
Hong Kong Dollar 31,522 US Dollar 4,000 2/24/00 4,014 (14)
Hong Kong Dollar 125,728 US Dollar 16,000 12/17/99 16,061 (61)
Hong Kong Dollar 213,818 US Dollar 27,000 2/24/00 27,233 (233)
Hong Kong Dollar 388,976 US Dollar 48,943 2/24/99 49,542 (598)
Hong Kong Dollar 262,136 US Dollar 33,000 10/19/99 33,600 (600)
Hong Kong Dollar 262,185 US Dollar 33,000 10/19/99 33,606 (606)
Hong Kong Dollar 524,321 US Dollar 66,353 12/17/99 66,978 (625)
Indian Rupee 786,240 US Dollar 18,000 7/14/99 18,409 (409)
Indian Rupee 445,500 US Dollar 10,000 7/14/99 10,431 (431)
Indian Rupee 2,075,050 US Dollar 47,000 7/14/99 48,586 (1,586)
Indonesian Rupiah 17,700,000 US Dollar 2,000 4/21/99 2,046 (46)
Indonesian Rupiah 35,200,000 US Dollar 4,000 4/7/99 4,069 (69)
Indonesian Rupiah 30,935,000 US Dollar 3,476 4/7/99 3,576 (100)
Indonesian Rupiah 30,510,000 US Dollar 3,409 4/7/99 3,527 (118)
Indonesian Rupiah 54,006,000 US Dollar 6,000 4/7/99 6,243 (243)
Indonesian Rupiah 45,885,000 US Dollar 5,000 4/7/99 5,252 (252)
Indonesian Rupiah 133,950,000 US Dollar 15,000 4/7/99 15,332 (332)
Indonesian Rupiah 134,437,500 US Dollar 14,981 4/7/99 15,542 (561)
Indonesian Rupiah 298,118,500 US Dollar 33,770 4/21/99 34,465 (695)
Indonesian Rupiah 226,175,000 US Dollar 25,000 4/7/99 25,888 (888)
Indonesian Rupiah 141,975,000 US Dollar 15,000 4/7/99 16,251 (1,251)
Mexican Peso 1,139,490 US Dollar 110,000 5/6/99 117,450 (7,450)
Phillipines Peso 275,870 US Dollar 7,000 6/18/99 7,015 (15)
Phillipines Peso 198,000 US Dollar 5,000 6/18/99 5,035 (35)
Phillipines Peso 198,500 US Dollar 5,000 6/18/99 5,047 (47)
Phillipines Peso 472,200 US Dollar 12,000 4/12/99 12,168 (168)
Phillipines Peso 1,223,880 US Dollar 31,000 4/12/99 31,707 (707)
Sinagapore Dollar 27,894 US Dollar 16,203 4/30/99 16,185 18
Sinagapore Dollar 5,006 US Dollar 2,908 4/30/99 2,905 3
South African Rand 919,573 US Dollar 147,841 4/1/99 149,233 (1,392)
South African Rand 853,646 US Dollar 135,000 5/17/99 136,912 (1,912)
South Korean Won 1,235,000 US Dollar 1,000 6/8/99 1,012 (12)
South Korean Won 8,715,000 US Dollar 7,000 6/8/99 7,142 (142)
South Korean Won 29,424,000 US Dollar 24,000 4/12/99 24,201 (201)
South Korean Won 50,819,500 US Dollar 41,000 4/9/99 41,418 (418)
South Korean Won 28,520,000 US Dollar 23,000 4/9/99 23,477 (477)
South Korean Won 39,904,000 US Dollar 32,000 6/8/99 32,700 (700)
South Korean Won 77,004,000 US Dollar 62,000 4/9/99 62,758 (758)
South Korean Won 74,635,000 US Dollar 59,000 6/8/99 61,161 (2,161)
South Korean Won 68,411,000 US Dollar 58,000 6/8/99 56,061 1,939
South Korean Won 65,178,000 US Dollar 54,000 2/14/00 52,973 1,027
South Korean Won 61,251,000 US Dollar 51,000 4/15/99 50,358 642
South Korean Won 28,992,000 US Dollar 24,000 2/14/00 23,563 437
South Korean Won 28,728,000 US Dollar 24,000 4/15/99 23,619 381
Taiwan Dollar 509,250 US Dollar 15,000 2/11/00 15,038 (38)
Taiwan Dollar 1,187,820 US Dollar 36,000 2/11/00 35,076 924
Taiwan Dollar 2,756,119 US Dollar 83,095 4/1/99 83,153 (58)
Taiwan Dollar 1,459,744 US Dollar 44,011 4/1/99 44,041 (30)
Taiwan Dollar 1,189,620 US Dollar 36,000 2/11/00 35,130 870
Taiwan Dollar 1,323,200 US Dollar 40,000 2/1/00 39,074 926
Taiwan Dollar 927,220 US Dollar 28,000 2/11/00 27,380 620
Taiwan Dollar 1,323,480 US Dollar 40,000 2/11/00 39,082 918
Thai Baht 562,200 US Dollar 15,000 4/19/99 14,973 27
Thai Baht 419,870 US Dollar 11,000 6/1/99 11,169 (169)
Thai Baht 155,000 US Dollar 4,111 4/2/99 4,130 (19)
</TABLE>

<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Net Unrealized
Appreciation
Contracts to Deliver In Exchange For Settlement Date Value (US$) (Depreciation) (US$)
- ---------------------------------------------------------------------------------------------------------------------------------
Sales
- ---------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
Thai Baht 3,322,135 US Dollar 89,473 4/19/99 88,477 $ 996
Thai Baht 5,950,000 US Dollar 157,616 4/19/99 158,464 (848)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Sales $ (81,373)
- -----------------------------------------------------------------------------------------------------------------------------------
Purchases
- -----------------------------------------------------------------------------------------------------------------------------------

Brazilian Real 205,436 US Dollar 101,200 4/6/99 117,526 $ 16,326
Brazilian Real 152,180 US Dollar 75,900 4/6/99 88,734 12,834
Brazilian Real 101,200 US Dollar 57,175 4/6/99 59,009 1,834
Brazilian Real 94,622 US Dollar 54,380 4/6/99 55,173 793
Hong Kong Dollar 524,321 US Dollar 66,708 10/19/99 67,206 498
Hong Kong Dollar 388,976 US Dollar 49,281 12/17/99 49,688 407
Hong Kong Dollar 103,203 US Dollar 13,000 12/17/99 13,183 183
Hong Kong Dollar 157,870 US Dollar 20,000 12/17/99 20,167 167
Hong Kong Dollar 46,511 US Dollar 6,000 4/30/99 5,999 (1)
Indian Rupee 1,784,000 US Dollar 40,000 7/14/99 41,771 1,771
Indian Rupee 1,101,250 US Dollar 25,000 7/14/99 25,785 785
Indian Rupee 965,360 US Dollar 22,000 7/14/99 22,603 603
Indian Rupee 444,500 US Dollar 10,000 7/14/99 10,408 408
Indian Rupee 440,000 US Dollar 10,000 7/14/99 10,302 302
Indian Rupee 1,238,300 US Dollar 29,000 4/23/99 29,296 296
Indonesian Rupiah 135,660,000 US Dollar 14,000 4/7/99 15,683 1,683
Indonesian Rupiah 60,420,000 US Dollar 6,000 4/7/99 6,916 916
Indonesian Rupiah 137,925,000 US Dollar 15,000 4/7/99 15,787 787
Indonesian Rupiah 153,580,000 US Dollar 17,000 4/7/99 17,610 610
Indonesian Rupiah 47,100,000 US Dollar 5,000 4/7/99 5,391 391
Indonesian Rupiah 298,118,500 US Dollar 34,141 4/7/99 34,465 324
Mexican Peso 533,885 US Dollar 55,000 5/6/99 55,029 29
Mexican Peso 605,605 US Dollar 62,417 5/6/99 62,421 4
Mexican Peso 533,610 US Dollar 55,000 5/6/99 55,001 1
Singapore Dollar 3,449 US Dollar 2,000 4/30/99 2,001 1
South African Rand 919,573 US Dollar 146,034 5/17/99 147,486 1,452
South African Rand 516,410 US Dollar 82,678 4/1/99 83,806 1,128
South African Rand 403,163 US Dollar 65,000 4/1/99 65,427 427
South African Rand 38,364 US Dollar 6,000 5/17/99 6,153 153
South African Rand 442,685 US Dollar 71,000 5/17/99 71,000 --
South Korean Won 44,561,000 US Dollar 37,446 4/15/99 36,637 (810)
South Korean Won 65,232,000 US Dollar 54,000 6/8/99 53,456 (544)
South Korean Won 45,418,000 US Dollar 38,263 4/15/99 37,341 (922)
South Korean Won 63,000,000 US Dollar 50,000 4/9/99 51,860 1,860
South Korean Won 47,728,000 US Dollar 38,000 4/9/99 39,289 1,289
South Korean Won 45,615,500 US Dollar 36,668 4/9/99 37,176 508
South Korean Won 35,612,000 US Dollar 29,000 6/8/99 29,183 183
Taiwan Dollar 1,459,744 US Dollar 44,000 4/1/99 44,041 41
Taiwan Dollar 3,618,800 US Dollar 109,000 4/16/99 109,181 181
Taiwan Dollar 2,756,119 US Dollar 83,000 4/1/99 83,153 153
Taiwan Dollar 564,230 US Dollar 17,000 4/16/99 17,023 23
Taiwan Dollar 609,840 US Dollar 18,000 2/11/00 18,009 9
Thai Baht 1,004,130 US Dollar 27,000 4/19/99 26,743 (257)
Thai Baht 4,676,875 US Dollar 125,000 4/19/99 124,557 (443)
Thai Baht 381,500 US Dollar 10,000 4/19/99 10,160 160
Thai Baht 155,000 US Dollar 4,111 4/19/99 4,130 19
Thai Baht 113,010 US Dollar 3,000 4/19/99 3,011 11
Thai Baht 187,335 US Dollar 5,000 4/19/99 4,989 (11)
Turkish Lira 3,817,600,000 US Dollar 80,000 8/18/99 81,542 1,542
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Total Purchases $ 48,106
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Net Unrealized Depreciation $ (33,267)
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</TABLE>

18
<PAGE>

- --------------------------------------------------------------------------------
Global Emerging Markets Equity Portfolio

Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------

Note 5--Risks of Investing in Emerging Markets

The risks involved when investing in emerging markets are of a nature generally
not encountered when investing in securities traded on major international
markets.

Note 6--Subsequent Event

Subsequent to period end, the portfolio has entered into a $100,000,000 364-day
senior unsecured committed revolving credit facility ("the facility") with two
lenders. The borrowings shall bear interest at a rate based on the Federal Funds
rate. A commitment fee is charged on the unused portion of the facility. The
facility replaces the revolving credit facility described in footnote 2.

<PAGE>

Investment Advisor and Administrator of the Portfolio
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006

Distributor
ICC DISTRIBUTORS, INC.
Two Portland Square
Portland, ME 04101

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

[LOGO]

[For information on how to invest, shareholder account information and current
price and yield information, please contact your relationship manager or write
to us at: BT Service Center
P.O. Box 419210
Kansas City, MO 64141-6210
or call our toll-free number: 1-800-730-1313

This report must be preceded or accompanied by a current prospectus for the
Fund.]

Global Emerging Markets Equity Fund CUSIP #055922678
BT Investment Funds 809 SA (3/99)

Distributed by:
ICC Distributors, Inc.
Two Portland Square
Portland, ME 04101