Report of Independent Accountants
To the Shareholders and Board of Directors
of BT Investment Funds:
In planning and performing our audits of the financial statements of Lifecycle
Long Range Fund, Lifecycle Mid Range Fund, Lifecycle Short Range Fund (three
of the Funds comprising the BT Investment Funds, hereafter referred to as the
Funds) for the year ended March 31, 2000, we considered their internal
control, including control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR,
not to provide assurance on internal control.
The management of the Funds is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an audit pertain to the
entitys objective of preparing financial statements for external purposes
that are fairly presented in conformity with accounting principles generally
accepted in the United States. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control
to future periods is subject to the risk that controls may become inadequate
because of changes in conditions or that the effectiveness of their design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as defined
above as of March 31, 2000.
This report is intended solely for the information and use of management, the
Board of Directors of BT Investment Funds and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other
than these specified parties.
PricewaterhouseCoopers LLP
Baltimore, Maryland
May 5, 2000
