BT INVESTMENT FUNDS
Investment International Equity Fund, International Small Company Equity Fund,
Global Emerging Markets Equity Fund, Latin American Equity Fund and Pacific
Basin Equity Fund
SUPPLEMENT DATED JANUARY 28, 2000 (REPLACING SUPPLEMENT DATED DECEMBER 16, 1999)
TO PROSPECTUS DATED JANUARY 31, 1999
THE FOLLOWING REVISES THE ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS, WITH RESPECT TO EACH FUND:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING REVISES THE "WHO SHOULD CONSIDER INVESTING" SECTION WITH RESPECT
TO THE LATIN AMERICAN EQUITY FUND AND THE PACIFIC BASIN EQUITY FUND:
On January 26, 2000, the Board of Trustees of the Latin American Equity Fund
voted to close the Fund to new shareholders effective January 27, 2000. The
Board of Trustees also voted to liquidate and terminate the Latin American
Equity Fund during the first quarter of 2000.
On January 26, 2000, the Board of Trustees of the Pacific Basin Equity Fund
voted to close the Fund to new shareholders effective January 27, 2000. The
Board of Trustees also voted to liquidate and terminate the Pacific Basin Equity
Fund during the first quarter of 2000.
THE FOLLOWING APPLIES TO GLOBAL EMERGING MARKETS EQUITY FUND:
On September 30, 1999, the Global Emerging Markets Equity Fund transferred all
of its assets to the Morgan Grenfell Emerging Markets Equity Fund (the "MG
Fund"), and Institutional shares of the MG Fund were distributed to the Global
Emerging Markets Equity Fund's shareholders in proportion to their holding in
the Global Emerging Markets Equity Fund (the "Reorganization"). After the
Reorganization, the Global Emerging Markets Equity Fund was liquidated and
terminated.
THE FOLLOWING SUPPLEMENTS THE "BUYING AND SELLING FUND SHARES" SECTION WITH
RESPECT TO INTERNATIONAL SMALL COMPANY EQUITY FUND:
International Small Company Equity Fund liquidated all of its assets and was
terminated effective May 28, 1999.
THE FOLLOWING SUPPLEMENTS THE "PRINCIPAL INVESTMENTS" SECTION WITH RESPECT TO
LATIN AMERICAN EQUITY FUND:
On December 8, 1999, the Fund's Board of Trustees voted to recommend a proposal
to shareholders to change the Fund's concentration policy. Currently, the Fund
may not invest more than 25% of its total assets in any single industry sector.
At an upcoming special meeting of shareholders, shareholders will be asked to
vote on a proposal to allow the Fund the flexibility to invest more than 25% of
its total assets, but no more than 35% of its total assets, in any given
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industry sector to the extent that the Morgan Stanley Capital International
(MSCI) Latin American Emerging Markets Free (EMF) index invests more than 20% in
that industry sector. More information relating to this policy change and the
risks associated with it will be included in a proxy statement, which will be
mailed to shareholders before the special meeting.
THE FOLLOWING REVISES AND SUPERCEDES, AS APPLICABLE, THE "MANAGEMENT OF THE
FUND(S)" SECTION WITH RESPECT TO LATIN AMERICAN EQUITY FUND AND PACIFIC BASIN
EQUITY FUND:
Effective May 1, 1999, BT Funds Management (International) Limited no longer
served as sub-adviser to the Funds.
THE FOLLOWING SUPPLEMENTS THE "MANAGEMENT OF THE FUNDS" SECTION WITH RESPECT TO
INTERNATIONAL EQUITY FUND, LATIN AMERICAN EQUITY FUND AND PACIFIC BASIN EQUITY
FUND:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G., ("Deutsche Bank"). Deutsche Bank 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. At a special meeting of shareholders ("Special Meeting")
held earlier this year, shareholders voted to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders of each Fund also approved a new investment
advisory agreement with Deutsche Asset Management Inc. ("DAMI"), formerly Morgan
Grenfell, Inc. Each Fund also approved a new sub-investment advisory agreement
under which the sub-adviser may perform certain of DAMI's responsibilities at
DAMI's expense. Shareholders of the International Equity Fund approved a new
sub-investment advisory agreement among the Fund's portfolio, DAMI and Bankers
Trust. Shareholders of Pacific Basin Equity Fund and Latin American Equity Fund
approved a new sub-investment advisory agreement among each Fund's corresponding
portfolio, DAMI and Deutsche Asset Management Investment Services Limited
("DAMISL"), formerly Morgan Grenfell Investment Services Limited. The new
investment advisory and sub-investment advisory agreements permit Deutsche Bank
to simplify the organizational structure of its U.S. mutual fund operations,
enhance the efficiency of their administration and promote consistency of
internal controls, compliance and regulatory oversight.
With respect to Pacific Basin Equity Fund and Latin American Equity Fund, on
December 8, 1999, the Board of Trustees approved implementation of the
investment advisory and sub-investment advisory agreements with DAMI and DAMISL,
respectively. Under the new investment advisory and sub-investment advisory
agreements, the compensation paid and the services provided are the same as
those under the Advisory Agreement with Bankers Trust. It is currently
anticipated that the new advisory agreements will become effective on or about
January 15, 2000.
With respect to International Equity Fund, the new investment advisory and
sub-investment advisory agreements with DAMI and Bankers Trust, respectively,
have not yet been implemented, but may be implemented within two years of the
date of the Special Meeting upon
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approval of a majority of the members of the Board of Trustees who are not
"interested persons." Under the new investment advisory and sub-investment
advisory agreements, the compensation paid and the services provided would be
the same as those under the Advisory Agreement with Bankers Trust.
ABOUT DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to 11 other investment
companies and as sub-adviser to five other investment companies.
ABOUT DAMISL. DAMISL is located at 20 Finsbury Circus, London, England EC2M 1NB,
UK. DAMISL provides a full range of international investment advisory services
principally to institutional clients. DAMISL serves as investment adviser to 13
other investment companies.
* * *
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.
Bankers Trust pleaded guilty to misstating entries in the bank's books and
records and agreed to pay a $63.5 million fine to state and federal authorities.
On July 26, 1999, the federal criminal proceedings were concluded with Bankers
Trust's formal sentencing. 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 each Fund. The
SEC has granted Bankers Trust a temporary order to permit it 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.
THE FOLLOWING REPLACES THE "PORTFOLIO MANAGERS" SECTION WITH RESPECT TO LATIN
AMERICAN EQUITY FUND AND PACIFIC BASIN EQUITY FUND:
Portfolio Management.
Each Fund is managed by a committee made up of investment professionals and
analysts employed by the sub-investment adviser. This committee makes all of the
Fund's investment decisions.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPPIEFS3 (1/00)
CUSIPS: 055922868 055922686 055922678 055922785 055922736 055924856
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