BT INVESTMENT FUNDS, N-30D, 1999-12-06

BT INVESTMENT FUNDS
N-30D, 1999-12-06

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[GRAPHIC OMITTED] BT Mutual Funds

Global Emerging
Markets Equity Fund
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
Report of Independent Accountants ...........................11
Tax Information .............................................11

Global Emerging Markets Equity Portfolio
Schedule of Portfolio Investments ...........................12
Statement of Assets and Liabilities .........................14
Statement of Operations .....................................14
Statements of Changes in Net Assets .........................15
Financial Highlights ........................................15
Notes to Financial Statements ...............................16
Report of Independent Accountants ...........................20

----------
The Fund is not insured by the FDIC and is not a deposit, obligation of or
guaranteed byBankers 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
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We are pleased to present you with this annual report for the 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, emerging equity markets in the regions of Latin America, Asia, and
Europe experienced great volatility but also staged a broad recovery from the
sharp losses of the previous year, outperforming most developed global markets
for the twelve months ended September 30, 1999. During the first half of the
fiscal year, emerging markets reacted positively to a more favorable interest
rate environment, led by easier U.S. monetary policy, and evidence that economic
conditions had bottomed, particularly in Asia. During the second half, emerging
markets registered double-digit returns as global commodity prices troughed and
Asia's economic recovery proved to be stronger than expected. However, in the
third calendar quarter of 1999, the emerging markets lost some ground, as
concerns over rising U.S. interest rates, tighter U.S. monetary policy, and Year
2000 preparedness led to a return of risk aversion. Still, for the fiscal year,
the emerging markets as a whole delivered a strong 56.52% in U.S. dollar terms,
far outpacing the S&P 500 Index's return of 27.80%.

Emerging Europe as a region was up 62.7% for the annual period, boosted during
the first half by lower interest rates from the U.S. and core European central
banks and during the second half by Greece's stunning 45.9% retail-driven
performance despite repeated "irrational exuberance" speeches by government
officials.
o The containment of the Kosovo conflict during the second half of the fiscal
year also bolstered the region's performance, particularly in Greece, Poland,
Hungary, and the Czech Republic.
o The Czech Republic market surged after the government announced long-awaited
privatization schedules.
o Poland had a particularly volatile year. Early gains quickly gave way to a
correction based on currency pressures and concerns over a deteriorating
current account deficit. Then it reached new highs in the second half followed
by a double-digit downturn upon more disappointing current account data and a
surprise hike in domestic interest rates.
o Russia was up a most impressive 174.7% during the first half of the fiscal
year, only to shed nearly a third of its value in the third calendar quarter
after a series of bombing attacks and charges of money laundering.
o Turkey posted strong gains for the annual period, despite the temporary
setback caused by the August earthquake.

Although Brazil's devaluation and Ecuador's eurobond default cast a cloud over
the region, Latin American markets returned 24.0% for the annual period,
primarily powered by economic data indicating that the worst of the Asian
financial crisis was apparently over as well as by better than expected economic
news from Brazil and Mexico.
o Brazil experienced the most volatility in the region. Several fundamental
problems, including very high levels and very short maturity of government
debt and a rising fiscal deficit, led up to its currency devaluation in
January 1999. The Brazilian Real then 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 and its new Central Bank
governor, ex-Wall Street Fund manager Arminio Fraga, was able to contain these
pressures, and the equity markets responded positively. Still, questions
remain over Brazil's fiscal reform efforts after its Supreme Court ruled down
two key social security reform bills.
o Oil and other commodity prices rose, particularly crucial for Argentina,
Venezuela, and Mexico. Also contributing to these markets' strong gains were:
-Repsol's bid for oil and gas company, YPF Sociedad Anonima, which helped to
re-rate the Argentine market, and
-relief in Venezuela that its constitutional crisis did not snowball into
the formation of a military government and that fiscal pressures eased on
the back of higher oil prices.
-While Mexico advanced 44.0% in the first half of the fiscal year, it
advanced only 2.1% during the second half, slowing from its earlier torrid
pace as political uncertainty gained the spotlight in the run-up to next
year's presidential election.

Asian markets rebounded notably from the previous year's battering, with a
return of 89.7% for the region. Overall, performance was enhanced by strong
economic and corporate earnings momentum, liquidity created by declining local
interest rates and large current account surpluses, and strong export growth as
intra-regional trade resumed.
o During the first half of the fiscal year, equity investors focused on such
positives as Japan's reflation efforts and restructuring initiatives and
signs that economic activity was stabilizing, particularly in South Korea,
Thailand, the Philippines, and Singapore, thus enhancing growth prospects for
these markets.
o India, Indonesia, Singapore and South Korea were the top regional performers
for the second half of the fiscal year; the main laggards were Thailand and
Philippines.
o The quarter ending September 30, 1999 was difficult for the Asian markets as
a whole and particularly for the smaller, less liquid markets in the region.
For example:
-The scandal involving Bank Bali and uncontrolled violence in East Timor
compounded Indonesia's woes.
-Thailand was adversely affected by stubbornly sticky non-performing loans.
-The Daewoo bankruptcy took its toll on South Korea, as investors braced for
a potential liquidity squeeze resulting from bond redemptions.
o Still, India performed well late in the fiscal year amid signs of cyclical
recovery and optimism surrounding the upcoming general election. Also,
favorable GDP and unemployment

3
<PAGE>

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

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

data helped Hong Kong recover some of its market losses resulting from
China/Taiwan and China/U.S. tensions.

INVESTMENT REVIEW
The Fund outperformed its category average and underperformed its benchmark for
the twelve months ended September 30, 1999. The Fund was impacted primarily by
its overweighting in Latin America and its underweighting of Emerging Europe. We
did lower Latin America's weighting slightly during the period, but because of
changes in the MSCI International Emerging Market Free Index, the Fund's
marginal overweight in the region widened. The Fund had a neutral to the
benchmark weighting in Asia for much of the fiscal year, but ended the period
underweight. Overall, equity sector positioning and stock selection helped
performance.

Within Latin America, positive factors for Fund performance included overweight
positions in Argentina, Peru, and Venezuela and an underweight position in
Chile. However, overweightings in Brazil and Mexico detracted from performance.
Our holding in oil and gas company YPF Sociedad Anonima received a big boost
when Spain's Repsol made a bid for the remaining shares it did not own. The
recovering oil price also lifted Petrobras shares. In Mexico, we added to the
Fund's holdings of economic recovery plays like cement company Cemex, beverage
firm Femsa, and media company Televisa.

In Asia, the Fund benefited from overweightings in Indonesia and Malaysia,
reversing our stance on Malaysia from the earlier part of the year. Detracting
from performance was the Fund's underweighting in India and the overweighting in
the Philippines and Thailand. We reduced exposure to interest-sensitive stocks
by selling Guoco Group, New World China Land, ICICI, Panin Bank, Fubon
Insurance, and Bangkok Bank. The competitive environment for cellular phone
service in Hong Kong prompted us to switch out of SmarTone to China Telecom, the
dominant cellular operator in China.

The Fund was underweight in the best performing countries in Emerging Europe,
including Greece and the Czech Republic. In Greece, we switched out of
fixed-line telephony, OTE, in favor of cellular provider, Panafon, and sold
Alpha Credit Bank on valuations.

South Africa was a top performing emerging market, but the Fund held an
underweight position. We increased the Fund's holdings of financials in South
Africa to take advantage of declining interest rates there.

MANAGER OUTLOOK
Having already experienced a dramatic turnaround, emerging markets stand to
continue to benefit from the cyclical global recovery currently underway.

We believe that interest rates in Asia have bottomed, and so returns in that
region going forward will likely be more muted, yet driven by strong earnings
performance. We are particularly optimistic about Taiwan, India, and South Korea
after the Daewoo crisis is sorted out.

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

Taiwan Semiconductor China Telecom (Hong Kong)
Manufacturing Co. Ltd. 4.5% Ltd. 2.4%
- --------------------------------------------------------------------------------

Telefonos de Mexico SA ADR
Class L 4.5% Cemex SA de CV ADR 2.3%
- --------------------------------------------------------------------------------

Samsung Electronics GDR Korea Electric Power Cor
Rule 144A 3.5% ADR 2.1%
- --------------------------------------------------------------------------------

SK Telecom Co., Ltd. ADR 3.1% Compania de Minas
Buenaventura SA ADR 2.1%
- --------------------------------------------------------------------------------
Pohang Iron & Steel Company
Ltd. ADR 2.6% Asustek Computer, Inc. 1.9%
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Periods ended September 30, 1999 Cumulative Total Returns Average Annual Total Returns
- ----------------------------------------------------------------------------------------------------------------
Past 1 Since Past 1 Since
year inception year inception
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Global Emerging
Markets Equity Fund/1 44.64% 16.29% 44.64% 12.82%
(inception 6/30/98)

- ----------------------------------------------------------------------------------------------------------------
MSCI International Emerging
Market Free Index/2 56.52% 22.07% 56.52% 17.30%

- ----------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets
Average/3 42.73% 9.17% 42.73% 7.13%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------
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. 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.
2/ Indexes are unmanaged, and investments cannot be made in an index.
3/ Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper, Inc. as falling into the respective
categories indicated. These figures do not reflect sales charges.

4
<PAGE>

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Global Emerging Markets Equity Fund

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

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

Diversification of Portfolio Investments
- --------------------------------------------------------------------------------
By Country as of September 30, 1999
(percentages are based on market value)

China 1% South Korea 17%

Greece 2% Thailand 2%

Taiwan 9% Turkey 4%

Hong Kong 3% [GRAPHIC OMITTED] Argentina 2%

Hungary 2%

Brazil 10% Mexico 18%

India 6% United
Kingdom 1%

Peru 3% Chile 3%

Philippines 2% South Africa 15%

Latin America has greater return potential in the new year, we believe, if risk
premiums and emerging market bond spreads can narrow. We expect this is likely
to happen once the U.S. bond market stabilizes. Brazil remains very inexpensive
on numerous parameters, but it has to make further progress on tackling the
fiscal front.

In our opinion, Emerging Europe, and Hungary especially, should benefit from the
burgeoning recovery of the European economic and monetary union (EMU) economies.
Poland has been oversold on current account fears. While the overall Greek
market is overvalued, the Fund's reasonably priced holdings are performing well,
and Greece is still on track to join EMU in 2001.

As we near the end of 1999, we expect increased volatility on Year 2000
concerns, however we believe that these near-term fears over liquidity and
preparedness will pose only limited and temporary setbacks to the emerging
markets.

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/ Julie Wang

Julie Wang
Portfolio Manager of the
Global Emerging Markets Equity Portfolio
September 30, 1999

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

[GRAPHIC OMITTED]
<TABLE>
<CAPTION>
Global Emerging Markets MSCI International Emerging
Equity Fund - $11,629 Market Free Index - $12,207
--------------------- ---------------------------
<S> <C> <C>
Jun-98 10000 10000
Sep-98 8040 7799
Dec.-98 9190 9202
Mar-99 10600 10347
Sep-99 11629 12207
</TABLE>

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

<PAGE>
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Global Emerging Markets Equity Fund

Statement of Assets and Liabilities September 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
Assets
<S> <C>
Investment in Global Emerging Markets Equity Portfolio, at Value ......... $ 3,023,977
Due from Bankers Trust ................................................... 29,560
-----------
Total Assets ................................................................ 3,053,537
-----------
Liabilities
Accrued Expenses and Other ............................................... 33,139
Payable for Shares of Beneficial Interest Redeemed ....................... 4,521
-----------
Total Liabilities ........................................................... 37,660
-----------
Net Assets .................................................................. $ 3,015,877
===========
Composition of Net Assets
Paid-in Capital .......................................................... $ 2,740,267
Distributions in Excess of Net Investment Income ......................... (21,998)
-----------
Net Unrealized Appreciation on Investment, Foreign Currencies and
Forward Foreign Currency Contracts .................................... 297,608
-----------
Net Assets .................................................................. $ 3,015,877
===========
Net Asset Value, Offering and Redemption Price Per Share
(net assets divided by shares outstanding) ................................. $ 10.94
===========

Shares Outstanding ($0.001 par value per share, unlimited number of shares of
beneficial interest authorized) .......................................... 275,760
===========
</TABLE>

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

Statement of Operations For the year ended September 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Investment Income
Income Allocated from Global Emerging Markets Equity Portfolio, net ........... $ 24,593
---------
Expenses
Professional Fees ............................................................. 32,533
Administration and Services Fees .............................................. 26,034
Printing and Shareholder Reports .............................................. 15,160
Registration Fees ............................................................. 12,839
Trustees Fees ................................................................. 4,708
Miscellaneous ................................................................. 18,095
---------
Total Expenses ................................................................ 109,369
Less Fees Waived/Expenses Reimbursed by Bankers Trust ......................... (85,777)
---------
Net Expenses ............................................................... 23,592
---------
Net Investment Income ............................................................ 1,001
---------
Realized and Unrealized Gain (Loss) on Investment, Foreign Currency
and Forward Foreign Currency Contracts
Net Realized Gain (Loss) from:
Investment Transactions .................................................... 253,541
Foreign Currency Transactions .............................................. (13,069)
Forward Foreign Currency Transactions ...................................... (20,480)
Net Change in Unrealized Appreciation/Depreciation on Investment, Foreign
Currencies and Forward Foreign Currency Contracts ........................ 653,053
---------
Net Realized and Unrealized Gain on Investment, Foreign Currency and
Forward Foreign Currency Contracts ............................................ 873,045
---------
Net Increase in Net Assets from Operations ....................................... $ 874,046
=========

</TABLE>

See Notes to Financial Statements.

<PAGE>

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Global Emerging Markets Equity Fund

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

For the period
For the June 30, 1998/1
year ended through
September 30, 1999 September 30, 1998
------------------ --------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income ........................................... $ 1,001 $ 6,404

Net Realized Gain (Loss) from Investment, Foreign Currency and
Forward Foreign Currency Transactions ........................ 219,992 (143,949)
Net Change in Unrealized Appreciation/Depreciation on Investment,
Foreign Currency and Forward Foreign Currency Contracts ...... 653,053 (355,445)
----------- -----------
Net Increase (Decrease) in Net Assets from Operations .............. 874,046 (492,990)
----------- -----------
Distributions to Shareholders
Net Investment Income ........................................... (4,789) --
Net Realized Gains .............................................. (99,998) --
In Excess of Realized Gains ..................................... (45,776) --
Return of Capital ............................................... (38,007) --
----------- -----------
Total Distributions ................................................ (188,570) --
----------- -----------
Capital Transactions in Shares of Beneficial Interest
Proceeds from Sales of Shares ................................... 1,028,045 2,586,798
Dividend Reinvestments .......................................... -- --
Cost of Shares Redeemed ......................................... (634,902) (156,550)
----------- -----------
Net Increase from Capital Transactions in Shares of
Beneficial Interest ............................................. 393,143 2,430,248
----------- -----------
Total Increase in Net Assets ....................................... 1,078,619 1,937,258
Net Assets
Beginning of Period ................................................ 1,937,258 --
----------- -----------
End of Period (including undistributed (distributions in excess of)
net investment income of $(21,998), and $7,000, respectively) ... $ 3,015,877 $ 1,937,258
=========== ===========
</TABLE>

- --------------
1/ Commencement of operations.

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.

For the period
For the June 30, 1998/2
year ended through
September 30, 1999 September 30, 1998
------------------ ------------------
Per Share Operating Performance:
<S> <C> <C>
Net Asset Value, Beginning of Period ........................................ $ 8.04 $ 10.00
------- --------
Income from Investment Operations
Net Investment Income .................................................... 0.00/3 0.03
Net Realized and Unrealized Gain (Loss) on Investment,
Foreign Currency, and Forward Foreign Currency Contracts .............. 3.60 (1.99)
------- --------
Total Gain (Loss) from Investment Operations ................................ 3.60 (1.96)
------- --------
Distributions to Shareholders
Net Investment Income .................................................... (0.02) --
Net Realized Gains ....................................................... (0.37) --
In Excess of Realized Gains .............................................. (0.17) --
Return of Capital ........................................................ (0.14) --
------- --------
Total Distributions ......................................................... (0.70) --
------- --------
Net Asset Value, End of Period .............................................. $ 10.94 $ 8.04
======= ========
Total Investment Return ..................................................... 44.64% (19.60)%
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) ................................. $ 3,016 $ 1,937
Ratios to Average Net Assets:
Net Investment Income ................................................. 0.03% 1.67%/1
Expenses, Including Expenses of the
Global Emerging Markets Portfolio ................................... 1.90% 1.90%/1
Decrease Reflected in Above Expense Ratio Due
to Fees Waived/Expenses Reimbursed by Bankers Trust ................. 4.82% 10.64%/1
</TABLE>

- --------------
1/ Annualized.
2/ Commencement of operations.
3/ Less than $.01 per share.

See Notes to Financial Statements.

<PAGE>

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

Notes to Financial Statements
- --------------------------------------------------------------------------------

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 began operations on June 30, 1998. The Fund seeks to achieve its
investment objective by investing 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 value of
the investment in the Portfolio reflects the Fund's proportionate interest in
the net assets of the Portfolio. At September 30, 1999, the Fund's investment
was approximately 100% of the Portfolio.

The financial statements of the Portfolio, including the Schedule of Portfolio
Investments, 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 1B 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 has deferred post-October currency
losses of $21,998.

F. Other
The Trust accounts separately for the assets, liabilities, and operations of
each fund. Expenses directly attributable to a 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. provides distribution services to the Fund.

Bankers Trust was a wholly owned subsidiary of Bankers Trust Corporation ("BT
Corp."). On June 4, 1999, BT Corp. was acquired by Deutsche Bank AG ("Deutsche
Bank"). As a result of the transaction, Bankers Trust became an indirect
wholly-owned subsidiary of Deutsche Bank.

Note 3--Shares of Beneficial Interest
At September 30, 1999, there were an unlimited number of shares of beneficial
interest authorized. Transactions in shares of beneficial interest were as
follows:

For the period
For the year ended June 30, 1998/1
September 30, 1999 to September 30, 1998
--------------------- ---------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 90,648 $1,028,045 261,126 $2,586,798
Reinvested -- -- -- --
Redeemed (55,804) (634,902) (20,210) (156,550)
------- ---------- ------- ----------
Net Increase 34,844 $ 393,143 240,916 $2,430,248
======= ========== ======= ==========
- --------------
1/ Commencement of operations.

9
<PAGE>

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

Notes to Financial Statements
- --------------------------------------------------------------------------------

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.

Note 5--Fund Reorganization
After the close of business on September 30, 1999 the Global Emerging Markets
Equity Fund redeemed its entire interest in the Global Emerging Markets Equity
Portfolio in exchange for a pro rata share of the portfolio securities and other
assets and liabilities. The Global Emerging Markets Equity Fund then transferred
all of its assets and liabilities to the Morgan Grenfell Emerging Markets Equity
Fund (the "MG Fund"). Institutional shares of the MG Fund were then distributed
to the Global Emerging Markets Equity Fund's shareholders in proportion to their
holdings in the Global Emerging Markets Equity Fund (the "Reorganization").
After the Reorganization, the Global Emerging Markets Equity Fund was liquidated
and terminated.

<PAGE>

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

Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Trustees of BT Investment Funds and Shareholders of Global Emerging
Markets Equity Fund:

In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Global Emerging Markets Fund (one of the funds comprising BT Investment
Funds, hereafter referred to as the "Fund") at September 30, 1999, and the
results of its operations, the changes in its net assets and the financial
highlights for each of the fiscal periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at September 30, 1999 by
correspondence with the transfer agent, provide a reasonable basis for the
opinion expressed above.

PricewaterhouseCoopers LLP
Baltimore, Maryland
November 19, 1999

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

Tax Information (Unaudited For the Year Ended September 30, 1999)
- --------------------------------------------------------------------------------

The Fund paid long term capital gains during the year ending September 30, 1999
in the amount of $20,883. The Fund received income from foreign sources in the
amount of $48,350. The Fund paid foreign taxes in the amount of $2,034 or .007
per share. Such amounts are eligible for the foreign tax credit. You should
consult your tax advisor relating to the appropriate treatment of foreign taxes
paid.

<PAGE>

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

Schedule of Portfolio Investments September 30, 1999
- --------------------------------------------------------------------------------

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

COMMON STOCKS - 79.7%
Argentina - 1.9%
1,830 Banco de Galicia SA .................................... $ 38,087
3,400 Perez Companc SA Series B .............................. 20,574
--------
58,661
--------
Brazil - 8.1%
1,875 Centrais Electricas Brasileiras SA ADR ................. 15,625
1,903 Companhia Vale do Rio Doce ADR ......................... 40,142
1,100 Embratel Participacoes SA ADR .......................... 12,581
2,370 Petroleo Brasiliero SA ADR ............................. 36,538
2,685 Tele Norte Leste Participacoes SA ADR .................. 41,617
600 Tele Centro Sul Participacoes SA ADR ................... 33,300
400 Telesp Celular Participacoes SA ADR .................... 10,450
2,527 Telesp Participacoes SA ADR ............................ 39,800
700 Uniao de Bancos Brasileiros SA GDR ..................... 12,381
--------
242,434
--------
Chile - 2.2%
1,094 Cia. de Telecomunicaciones de Chile SA ADR ............. 19,760
1,500 Distribucion y Servicio D&S SA ADR ..................... 25,219
500 Embotelladora Andina SA ADR ............................ 8,656
615 Enersis SA ADR ......................................... 12,838
--------
66,473
--------
China - 0.5%
1,300 Huaneng Power International, Inc. ADR .................. 16,169
--------

Greece - 1.5%
400 Titan Cement Co. ....................................... 46,663
--------

Hong Kong - 2.3%
23,000 China Telecom (Hong Kong) Ltd. ......................... 70,917
--------

Hungary - 1.9%
1,076 Magyar Tavkozlesi Rt. ADR .............................. 29,321
1,376 MOL Magyar Olaj-es Gazipari Rt. GDR .................... 29,240
--------
58,561
--------
India - 4.7%
3,000 Gujarat Ambuja Exports Ltd. ............................ 37,125
2,000 I.T.C. Ltd. GDR ........................................ 50,600
1,000 Larsen and Toubro Ltd. GDR ............................. 22,150
3,110 Mahanagar Telephone Nigam Ltd. GDR ..................... 31,489
--------
141,364
--------
Mexico - 15.2%
5,700 Alfa SA Class A ........................................ 24,120
2,898 Cemex SA de CV ADR (a) ................................. 69,905
1,449 Fomento Economico Mexicano SA de CV ADR ................ 45,372
8,721 Grupo Carso SA de CV Series A1 (a) ..................... 36,391
6,940 Grupo Financiero Banamex Accival SA de CV "O" Shares ... 12,490
12,200 Grupo Modelo SA de CV Series C ......................... 30,937
1,241 Grupo Televisa SA GDR (a) .............................. 49,562
7,446 Kimberly Clark de Mexico SA de CV ADR .................. 26,291

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

6,500 Organizacion Soriana SA de CV Series B ............. $ 26,080
1,904 Telefonos de Mexico SA ADR Class L ................. 135,660
--------
456,808
--------
Peru - 2.0%
3,580 Compania de Minas Buenaventura SA ADR .............. 61,979
--------

Philippines - 1.6%
335,000 Digital Telecommunications Philippines, Inc. (a) ... 12,614
16,800 Equitable PCI Bank ................................. 34,915
--------
47,529
--------
South Africa - 11.7%
10,608 ABSA Group Ltd. .................................... 41,549
699 Anglo American PLC ................................. 39,168
3,400 Barlow Ltd. ........................................ 16,661
1,300 Bidvest Group Ltd. ................................. 8,667
1,838 DataTec Ltd. ....................................... 16,941
1,700 De Beers ........................................... 46,751
6,111 Dimension Data Holdings Ltd. ....................... 24,292
1,400 Fedsure Holdings Ltd. .............................. 9,334
27,300 FirstRand Ltd. ..................................... 27,756
4,374 Johnnies Industrial Corp Ltd. ...................... 28,796
1,100 Liberty Life Association of Africa Ltd. ............ 8,617
6,100 Metropolitan Life Ltd. ............................. 7,015
1,300 Nedcor Ltd. ........................................ 25,481
2,410 Sappi Ltd. ......................................... 23,498
3,382 South African Breweries PLC ........................ 28,991
--------
353,517
--------
South Korea - 13.8%
2,600 Housing & Commercial Bank GDR Rule 144A (b) ........ 50,228
4,000 Korea Electric Power Corp ADR ...................... 64,250
2,525 Pohang Iron & Steel Company Ltd. ADR ............... 79,064
1,350 Samsung Electronics GDR Rule 144A (b) .............. 104,726
1,300 Shinhan Bank GDR (a) ............................... 23,790
9,069 SK Telecom Co. Ltd. ADR ............................ 93,524
--------
415,582
--------
Taiwan - 7.4%
1,220 ASE Test Ltd. ...................................... 29,585
4,344 Asustek Computer, Inc. ............................. 57,449
4,637 Taiwan Semiconductor Manufacturing Co. Ltd. ........ 136,792
--------
223,826
--------
Thailand - 1.4%
14,000 Siam City Cement Public Company Ltd. ............... 43,105
--------

Turkey - 2.9%
221,285 Akbank T.A.S ....................................... 33,137
291,751 Hurriyet Gazetecilik ve Matbaacilik AS ............. 22,795
26,599 Vestel Elektronik Sanayi ve Ticaret AS ............. 32,327
--------
88,259
--------

See Notes to Financial Statements.

<PAGE>

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

Schedule of Portfolio Investments September 30, 1999
- --------------------------------------------------------------------------------

Shares Description Value
- ------ ----------- -----
United Kingdom - 0.6%
8,200 Old Mutual PLC (a) .............................. $ 17,455
----------

Total Common Stocks (Cost $2,086,764) ................. 79.7% 2,409,302

Other Assets in Excess of Liabilities ................. 20.3% 614,675
----- ----------
Net Assets 100.0% $3,023,977
===== ==========

- --------------
(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):
Telecommunications ........... 22.04%
Banks ........................ 11.29%
Semi-conductors .............. 10.02%
Mining ....................... 6.18%
Diversified .................. 5.68%
Electronics .................. 4.95%
Building Materials ........... 4.84%
Beverages .................... 4.73%
Utilities .................... 4.52%
Oil .......................... 3.58%
Steel ........................ 3.28%
Tobacco ...................... 2.10%
Television ................... 2.06%
Building & Construction ...... 1.79%
Insurance .................... 1.76%
Computer Services ............ 1.71%
Agriculture .................. 1.54%
Finance ...................... 1.15%
Consumer Goods ............... 1.09%
Retail ....................... 1.08%
Food Retailing ............... 1.05%
Paper ........................ 0.98%
Publishing ................... 0.95%
Other* ....................... 1.63%
------
100.00%
======

- --------------
*No one industry represents more than 1% of portfolio holdings.

See Notes to Financial Statements.

13
<PAGE>

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

Statement of Assets and Liabilities September 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets
Investments, at value (cost of $2,086,764) ....................... $2,409,302
Cash/1 ........................................................... 132,673
Due from Bankers Trust ........................................... 34,622
Receivable for Securities Sold ................................... 628,532
Unrealized Appreciation on Forward Currency Contracts ............ 10,004
Dividends and Interest Receivable ................................ 7,424
----------
Total Assets ........................................................ 3,222,557
----------
Liabilities
Payable for Securities Purchased ................................. 139,881
Unrealized Depreciation on Forward Currency Contracts ............ 14,802
Accrued Expenses and Other ....................................... 43,897
----------
Total Liabilities ................................................... 198,580
----------
Net Assets .......................................................... $3,023,977
==========
Composition of Net Assets
Paid-in Capital .................................................. $2,704,097
Net Unrealized Appreciation on Investments, Foreign Currencies and
Forward Foreign Currency Contracts ............................ 319,880
----------
Net Assets .......................................................... $3,023,977
==========
</TABLE>

- --------------
1/ Includes Foreign Cash of $200,166 with a cost of $199,982.

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

Statement of Operations For the year ended September 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Investment Income
Dividends (net of foreign withholding tax of $2,187) ................ $ 49,802
Interest ............................................................ 8,346
---------
Total Investment Income ................................................ 58,148
---------
Expenses
Professional Fees ................................................... 42,390
Advisory Fees ....................................................... 32,746
Trustees Fees ....................................................... 5,260
Administration and Services Fee ..................................... 4,465
Foreign Custody Fees ................................................ 2,892
Miscellaneous ....................................................... 1,310
---------
Total Expenses ...................................................... 89,063
Less Fees Waived/Expenses Reimbursed by Bankers Trust ............... (56,121)
---------
Net Expenses ..................................................... 32,942
---------
Net Investment Income .................................................. 25,206
---------
Realized and Unrealized Gain (Loss) on Investments, Foreign Currencies,
and Forward Foreign Currency Contracts
Net Realized Gain (Loss) from:
Investment Transactions .......................................... 256,137
Foreign Currency Transactions .................................... (13,334)
Forward Foreign Currency Transactions ............................ (20,638)
Net Change in Unrealized Appreciation/Depreciation on Investments,
Foreign Currencies and Forward Foreign Currency Contracts ..... 676,143
---------
Net Realized and Unrealized Gain on Investments, Foreign Currencies
and Forward Foreign Currency Contracts ............................... 898,308
---------
Net Increase in Net Assets from Operations ............................. $ 923,514
=========
</TABLE>

See Notes to Financial Statements.

14
<PAGE>

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

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

<TABLE>
<CAPTION>
For the period
For the June 30, 1998/1
year ended through
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income .................................................. $ 25,206 $ 9,514
Net Realized Gain (Loss) from Investments, Foreign Currency, and
Forward Foreign Currency Transactions ............................... 222,165 (145,560)
Net Change in Unrealized Appreciation/Depreciation on Investments,
Foreign Currencies, and Forward Foreign Currency Contracts .......... 676,143 (356,263)
---------- ----------
Net Increase (Decrease) in Net Assets from Operations ..................... 923,514 (492,309)
---------- ----------
Capital Transactions
Proceeds from Capital Invested ......................................... 974,090 2,616,975
Value of Capital Withdrawn ............................................. (841,170) (157,122)
---------- ----------
Net Increase in Net Assets from Capital Transactions ...................... 132,920 2,459,853
---------- ----------
Total Increase in Net Assets .............................................. 1,056,434 1,967,543

Net Assets
Beginning of Year ......................................................... 1,967,543 --
---------- ----------
End of Year ............................................................... $3,023,977 $1,967,543
========== ==========

</TABLE>

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

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.
<TABLE>
<CAPTION>

For the period
June 30, 1998/1
For the through
year ended September 30,
September 30, 1999 1998
----------------- -----------
<S> <C> <C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) ..................... $3,024 $1,968
Ratios to Average Net Assets:
Net Investment Income ..................................... 0.85% 2.30%/2
Expenses .................................................. 1.10% 1.10%/2
Decrease Reflected in Above Expense Ratio Due
to Fees Waived/Expenses Reimbursed by Bankers Trust ..... 1.88% 5.71%/2
Portfolio Turnover Rate ...................................... 172% 38%
</TABLE>

- --------------
1/ Commencement of operations.
2/ Annualized.

See Notes to Financial Statements.

<PAGE>

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

Notes to Financial Statements
- --------------------------------------------------------------------------------

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 began
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.

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. 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.

E. 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.

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

G. 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
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this 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 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
1.10% of the average daily net assets of the Portfolio.

The Portfolio may invest in the 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. For the year ended September 30, 1999 the
Portfolio did not invest in the Fund.

The Portfolio is a participant with other affiliated entities in a revolving
credit facility in the amount of $100,000,000, which expires April 29, 2000. A
commitment fee of .10% per annum on the average daily amount of the available
commitment is payable on a quarterly basis and apportioned equally among all
participants. No amounts were drawn down or outstanding under the credit
facility for the year ended September 30, 1999.

16
<PAGE>

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

Notes to Financial Statements
- --------------------------------------------------------------------------------

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 year ended September 30, 1999, were
$4,621,141 and $4,553,303, respectively.

For federal income tax purposes, the tax basis of investments held at September
30, 1999 was $2,101,055. The aggregate gross unrealized appreciation for all
investments was $428,739 and the aggregate gross unrealized depreciation for all
investments was $120,492.

Note 4--Open Forward Foreign Currency Contracts
At September 30, 1999, the Global Emerging Markets Portfolio had the following
open forward foreign currency contracts outstanding:

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

<S> <C> <C> <C> <C> <C> <C>
Brazilian Real 142,884 US Dollar 74,322 10/1/99 74,420 $ (98)
Greek Drachma 16,240,000 US Dollar 52,404 10/1/99 52,640 (236)
Greek Drachma 9,860,000 US Dollar 31,987 10/4/99 31,960 27
Hong Kong Dollar 394,000 US Dollar 50,721 10/4/99 50,724 (3)
Hong Kong Dollar 92,000 US Dollar 11,843 10/4/99 11,844 (1)
Hong Kong Dollar 262,185 US Dollar 33,000 10/19/99 33,749 (749)
Hong Kong Dollar 262,135 US Dollar 33,000 10/19/99 33,743 (743)
Hong Kong Dollar 524,321 US Dollar 66,353 12/17/99 67,445 (1,092)
Hong Kong Dollar 125,728 US Dollar 16,000 12/17/99 16,173 (173)
Hong Kong Dollar 213,818 US Dollar 27,000 2/24/00 27,463 (463)
Hong Kong Dollar 19,000 US Dollar 2,408 2/24/00 2,440 (32)
Hong Kong Dollar 31,522 US Dollar 4,000 2/24/00 4,049 (49)
Hong Kong Dollar 31,304 US Dollar 4,000 4/17/00 4,014 (14)
Hong Kong Dollar 388,976 US Dollar 48,943 2/24/00 49,961 (1,018)
Indonesian Rupiah 740,000,000 US Dollar 88,095 10/1/99 88,572 (477)
Korean Won 28,992,000 US Dollar 24,000 2/14/00 23,807 193
Korean Won 65,178,000 US Dollar 54,000 2/14/00 53,522 478
Korean Won 9,850,400 US Dollar 8,000 2/14/00 8,089 (89)
Philippines Peso 385,000 US Dollar 9,374 10/4/99 9,413 (39)
Philippines Peso 930,000 US Dollar 22,672 10/5/99 22,739 (67)
Taiwan Dollar 1,187,820 US Dollar 36,000 2/11/00 37,225 (1,225)
Taiwan Dollar 1,189,620 US Dollar 36,000 2/11/00 37,282 (1,282)
Taiwan Dollar 1,323,200 US Dollar 40,000 2/11/00 41,468 (1,468)
Taiwan Dollar 1,323,480 US Dollar 40,000 2/11/00 41,477 (1,477)
Taiwan Dollar 927,220 US Dollar 28,000 2/11/00 29,058 (1,058)
Taiwan Dollar 509,250 US Dollar 15,000 2/11/00 15,960 (959)
Thai Bat 1,725,000 US Dollar 41,717 10/1/99 42,152 (434)

- ------------------------------------------------------------------------------------------------------------------------
Total Sales $(12,548)
- ------------------------------------------------------------------------------------------------------------------------
Purchases
- ------------------------------------------------------------------------------------------------------------------------
Hong Kong Dollar 524,321 US Dollar 66,708 10/19/99 67,491 $ 784
Hong Kong Dollar 157,870 US Dollar 20,000 12/17/99 20,307 307
Hong Kong Dollar 103,203 US Dollar 13,000 12/17/99 13,275 275
Hong Kong Dollar 388,976 US Dollar 49,281 12/17/99 50,035 754
Hong Kong Dollar 653,316 US Dollar 83,594 2/24/00 83,913 319
Hong Kong Dollar 31,304 US Dollar 3,994 4/17/00 4,014 20
Korean Won 104,020,400 US Dollar 86,974 2/14/00 85,418 (1,556)
Taiwan Dollar 609,840 US Dollar 18,000 2/11/00 19,112 1,112
Taiwan Dollar 3,924,977 US Dollar 119,000 2/11/00 123,006 4,006
Taiwan Dollar 1,925,773 US Dollar 58,623 2/11/00 60,352 1,729

- ------------------------------------------------------------------------------------------------------------------------
Total Purchases $ 7,750
- ------------------------------------------------------------------------------------------------------------------------
Net Depreciation $ (4,798)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>

17
<PAGE>

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

Notes to Financial Statements
- --------------------------------------------------------------------------------

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--Portfolio Liquidation
After the close of business on September 30, 1999, the Global Emerging Markets
Equity Fund redeemed its entire interest in the Portfolio in exchange for a pro
rata share of the Portfolio securities and other assets and liabilities. After
the redemption, the Global Emerging Markets Equity Portfolio was liquidated and
terminated.

<PAGE>

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

Report of Independent Accountants
- --------------------------------------------------------------------------------

To the Trustees of BT Investment Portfolios and Holders of Beneficial Interest
of Global Emerging Markets Equity Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Global Emerging Markets Equity
Portfolio (one of the portfolios comprising BT Investment Portfolios, hereafter
referred to as the "Portfolio") at September 30, 1999, and the results of its
operations, the changes in its net assets and the financial highlights for each
of the fiscal periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Portfolio's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.

PricewaterhouseCoopers LLP
Baltimore, Maryland
November 19, 1999

<PAGE>

[GRAPHIC OMITTED] BankersTrust
Architects of Value

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 809ANN (9/99)

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