BT INVESTMENT FUNDS
(Cash Management Fund, Treasury Money Fund, NY Tax Free Money Fund, Tax Free
Money Fund, Lifecycle Short Range Fund, Lifecycle Mid Range Fund, Lifecycle Long
Range Fund)
BT ADVISOR FUNDS
(U.S. Bond Index Fund, EAFE (R) Equity Index Fund, Small Cap Index Fund)
BT PYRAMID MUTUAL FUNDS
(Money Market Fund, Equity 500 Index Fund, Institutional Asset Management Fund)
BT INSTITUTIONAL FUNDS
(Treasury Money Fund, Cash Management Fund, Cash Reserves, Liquid Assets Fund,
Equity 500 Index Fund)
PROSPECTUS SUPPLEMENT DATED MARCH 29, 1999, SUPPLANTING SUPPLEMENT DATED JULY
17, 1998
Effective August 11, 1998, ICC Distributors, Inc. will replace Edgewood
Services, Inc. ("Edgewood") as distributor of the above-named investment
companies. ICC Distributors, Inc. is a registered broker/dealer with principal
offices at Two Portland Square, Portland, Maine 04101 and is not affiliated with
Bankers Trust. Accordingly, references throughout each prospectus to Edgewood
should be replaced with references to ICC Distributors, Inc. and its affiliates,
respectively, as appropriate. However, affiliates of Edgewood may continue to
perform certain fund administration duties, at Bankers Trust's expense.
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE TRUST(S) AND
PORTFOLIO(S)" IN THE FUND'S PROSPECTUS:
Bankers Trust 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.
* * *
On March 11, 1999, Bankers Trust announced that it had reached an agreement with
the United States Attorney's Office in the Southern District of New York to
resolve an investigation concerning inappropriate transfers of unclaimed funds
and related record-keeping problems that occurred between 1994 and early 1996.
Pursuant to its agreement with the U.S. Attorney's Office, Bankers Trust pleaded
guilty to misstating entries in the bank's books and records and agreed to pay a
$60 million fine to federal authorities. Separately, Bankers Trust agreed to pay
a $3.5 million fine to the State of New York. The events leading up to the
guilty pleas did not arise out of the investment advisory or mutual fund
management activities of Bankers Trust or its affiliates.
As a result of the plea, absent an order from the SEC, Bankers Trust would not
be able to continue to provide investment advisory services to the Fund. The SEC
has granted a temporary order to permit Bankers Trust and its affiliates to
continue to provide investment advisory services to registered investment
companies. There is no assurance that the SEC will grant a permanent order.
<PAGE>
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
CUSIPS
055922108 055922405 055922207 055922306 055922827
055922835 055922843 05576L700 05576L874 05576L882
055847206 055847107 055924203 055924104 055924872
055924864 055924500 055847404
SUPP1231
