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Deutsche Asset Management
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BT Investment Funds
PreservationPlus Income
Supplement dated June 7, 2000 to Prospectus dated January 31, 2000
The following supplements the "Total Returns, After Fees and Expenses" section
and the "Financial Highlights" table in the Fund's prospectus:
Total returns for the Fund assume that an investor did not pay a redemption fee
at the end of the periods shown. However, if redemption fees were paid by fund
shareholders during the periods, the income received by the Fund from those
shareholders is included in the Fund's returns.
The following supplements footnote number two to the "Annual Fees and Expenses"
table in the Fund's prospectus:
The investment adviser has contractually agreed to waive its management fees
through September 30, 2000.
The following replaces the second and third sentences in the "Buying and Selling
Fund Shares -- Participant-Directed Employee Benefit Plans -- Redeeming Shares"
section of the Fund's prospectus:
There will be no redemption fee assessed for qualified plan redemptions, which
are:
. Redemptions resulting from the plan participant's death, disability,
retirement or termination of employment;
. Redemptions to fund loans to, or "in service" withdrawals by, a plan
participant; and
. Transfers to other plan investment options that are not competing funds* if:
. your plan does not allow transfers to competing funds and
. your plan requires transfers between the Fund and a non-competing fund to
remain in the non-competing fund for a period of at least three months
before transfer to a competing fund.
* Competing funds are any fixed income investment options with a targeted
average duration of three years or less, or any investment option that seeks to
maintain a stable value per unit or share, including money market funds.
All other redemptions of shares will be subject to the 3% redemption fee, if the
Interest Rate Trigger is active. Specifically, if your plan allows transfers to
competing funds or if they do not require transfers between the Fund and a
non-competing fund to remain in the non-competing fund for a period of at least
three months before transfer to a competing fund, all transfers will be subject
to a redemption fee.
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The following replaces the "Buying and Selling Fund Shares -- Interest Rate
Trigger" section of the Fund's prospectus:
Qualified IRA redemptions and qualified plan redemptions (as described above)
are not subject to the redemption fee at any time. All other redemptions are
subject to the redemption fee, in the amount of 3%, on the proceeds of such
redemptions of shares by shareholders on any day that the "Interest Rate
Trigger" (as described below) is "active," and not subject to those charges on
days that the Interest Rate Trigger is "inactive." The Interest Rate Trigger is
active on any day when, as of the preceding day, the "Reference Index Yield"
exceeds the sum of the "Annual Effective Yield" of the PreservationPlus Income
Portfolio plus 1.35%. The Reference Index Yield on any determination date is the
previous day's closing "Yield to Worst" on the Lehman Brothers Intermediate
Treasury Bond Index (R). The "Annual Effective Yield" generally represents one
day's investment income expressed as an annualized yield and compounded
annually. The status of the Interest Rate Trigger will either be "active" or
"inactive" on any day, and shall be determined on every day that the NAV is
calculated for the Fund. Once the Interest Rate Trigger is active, it remains
active every day until the Reference Index Yield is less than the sum of the
Annual Effective Yield of the Portfolio plus 1.10%, at which time the Interest
Rate Trigger becomes inactive on the following day and remains inactive every
day thereafter until it becomes active again. An example of when and how the
redemption fee will apply to the redemption of shares follows.
The Annual Effective Yield of the Portfolio is intended to represent one day's
investment income expressed as an annualized yield and compounded annually. The
Annual Effective Yield of the Portfolio shall be expressed as a percentage and
calculated on each business day as follows based on the dividend declared for
the previous day:
[(1 + Previous Day's Dividend Factor)/\365-1]
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NAV Per Share
Please note that the annual effective yield of the Fund will be lower than the
annual effective yield of the Portfolio because the Portfolio's expenses are
lower than the Fund's.
A shareholder is considering submitting a request for a redemption other than a
qualified IRA redemption or a qualified plan redemption to the Fund on March 2nd
in the amount of $5,000. Assume that the Reference Index Yield is 8.65% as of
the close of business on March 1st and the Annual Effective Yield of the
Portfolio is 6.20% as of that date. The Annual Effective Yield of the Portfolio
plus 1.35% equals 7.55%. Since this is less than the Reference Index Yield of
8.65%, the Interest Rate Trigger is active. Thus, the net redemption proceeds to
the shareholder will be $4,850. The redemption fee will continue to apply to all
redemptions that are not qualified IRA redemptions or qualified plan redemptions
until the day after the Reference Index Yield is less than the sum of the Annual
Effective Yield of the Portfolio plus 1.10%.
(Please note that this example does not take into consideration an individual
shareholder's tax issues or consequences including, without limitation, any
withholding taxes that may apply.)
The spread between the Annual Effective Yield of the Portfolio and the Reference
Index Yield that cause the Interest Rate Trigger to be activated (currently a
spread of 1.35%) and de-activated (currently a
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spread of 1.10%) reflect the fact that the Portfolio's entire investment
advisory fee is currently being waived. If the investment advisory fee waiver is
discontinued as expected, these spreads will increase.
The amount of, and method of applying, the Redemption Fee, including the
operation of the Interest Rate Trigger, may be changed in the future. For
example, we expect to reduce the Redemption Fee to 2% and correspondingly adjust
the Interest Rate Trigger so that the Interest Rate Trigger will be active more
frequently than under the current calculation. Shares currently offered in this
prospectus would be subject to the new combination of Redemption Fee and
Interest Rate Trigger.
You can obtain information regarding when the Interest Rate Trigger is active,
as well as the Annual Effective Yield of the Portfolio and the Reference Index
Yield by calling 1-800-730-1313 or your service agent.
Please Retain This Supplement for Future Reference
SUPP1722 (6/00)
CUSIP:
055922660
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A Member of the
Deutsche Bank Group [/]
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