PRICEWATERHOUSECOOPERS (GRAPHIC APPEARS HERE)
Pricewaterhouse Coopers LLP
250 West Pratt Street
Suite 2100
Baltimore MD 21201 2304
Report of Independent Accountants Telephone (410) 783 7600
Facsimile (410) 783 7680
To the Board of Directors of:
Institutional Daily Assets Fund
International Equity Portfolio
EAFE Equity Index Portfolio
Small Cap Index Portfolio
Liquid Assets Portfolio
Latin American Equity Portfolio
Equity Appreciation Fund
Small Cap Portfolio
Pacific Basin Equity Portfolio
Equity 500 Index Portfolio
Intermediate Tax Free Portfolio
Tax Free Money Portfolio
Cash Management Portfolio
Treasury Money Portfolio
Quantitative Equity Fund
Capital Appreciation Portfolio
NY Tax Free Money Portfolio
Institutional Treasury Assets Fund
BT PreservationPlus Portfolio - Unwrapped
BT PreservationPlus Portfolio - Wrapped
BT PreservationPlus Income Fund - Wrapped
Asset Management Portfolio
Asset Management II Portfolio
Asset Management III Portfolio
Small Cap Index Fund (Insurance Trust Funds)
EAFE Equity Index Fund (Insurance Funds)
Equity 500 Index (Insurance Trust Funds)
We have examined management's assertion, included in the accompanying
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940, about Institutional Daily Assets Fund,
International Equity Portfolio, EAFE Equity Index Portfolio, Small Cap Index
Portfolio, Liquid Assets Portfolio, Latin American Equity Portfolio, Equity
Appreciation Fund, Small Cap Portfolio, Pacific Basin Equity Portfolio, Equity
500 Index Portfolio, Intermediate Tax Free Portfolio, Tax Free Money
Portfolio, Cash Management Portfolio, Treasury Money Portfolio, Quantitative
Equity Fund, Capital Appreciation Portfolio, NY Tax Free Money Portfolio,
Institutional Treasury Assets Fund, BT Preservation Plus Portfolio
Unwrapped, BT Preservation Plus Portfolio Wrapped, BT Preservation Plus
Income Fund Wrapped, Asset Management Portfolio, Asset Management II
Portfolio, Asset Management III Portfolio, Small Cap Index Fund (Insurance
Trust), EAFE Equity Index Fund (Insurance Trust), Equity 500 Index (Insurance
Trust) (referred to as Funds) compliance with the requirements of subsections
(b) and (c) of Rule 17f-2 under the Investment Company Act of 1940
(referred to as Act) as of September 30, 1999. Management is responsible for
the Company's compliance with those requirements.
Our responsibility is to express an opinion on management's assertion about
the Company's compliance based on our examination.
Our examination was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about the Company's
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
Included among our procedures were the following tests performed as of
September 30, 1999, and with respect to agreement of security purchases and
sales, for the period from May 31, 1999 (the date of our last examination),
through September 30, 1999:
- -Count and inspection of all securities located in the vault of Deutsche Bank
in New York without prior notice to management;
- -Confirmation of all securities held by institutions in book entry form The
Federal Reserve Bank of New York, The Depository Trust Company and CREST;
- -Confirmed all securities record-kept at banks with whom the Custodian and the
Funds have contracted to provide sub-custodian services without prior notice
to management;
- -Confirmation of all securities hypothecated, pledged, placed in escrow, or
out for transfer with brokers, pledgees and/or transfer agents;
- -Reconciliation of all such securities to the books and records of the Funds
and the Custodian;
- -Confirmation of all repurchase agreements with brokers/banks and agreement of
underlying collateral with Deutsche Bank records; and
- -Agreement of security purchases and security sales or maturities since our
last report from the books and records of the Fund to broker confirmations.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Fund's
compliance with specified requirements.
In our opinion, management's assertion that the Funds were in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of September 30, 1999 with respect to securities
reflected in the investment account of the Company is fairly stated, in all
material respects.
This report is intended solely for the information and use of the Board of
Directors, management, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
April 3, 2000
<PAGE>
Deutsche Asset Management
1 South Street
Baltimore MD 21202 3220
Telephone 410 727 1700
Management Statement Regarding Compliance with Certain Provisions of the
Investment Company Act of 1940
We, as members of management of Deutsche Asset Management, are responsible for
complying with the requirements of subsections (b) and (c) of Rule 17f-2,
Custody of Investments by Registered Management Investment Companies, of the
Investment Company of 1940. We are also responsible for establishing and
maintaining effective internal controls over compliance with those
requirements. We have performed an evaluation of the Company's compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 as of September
30, 1999, and from May 28, 1999 through September 30, 1999.
Based on this evaluation, we assert that the Company was in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of September 30, 1999, and from May 28, 1999 through
September 30, 1999, with respect to securities reflected in the investment
account of the Company.
Deutsche Asset Management
Institutional Daily Assets Fund
International Equity
EAFE Equity Index
Small Cap Index
Liquid Assets
Latin American Equity
Equity Appreciation Fund
Small Cap
Pacific Basin Equity
Equity 500 Index
Intermediate Tax Free
Tax Free Money
Cash Management
Treasury Money
Quantitative Equity Fund
Capital Appreciation
NY Tax Free Money
Asset Management
Institutional
Treasury Assets Fund
BT PreservationPlus-Unwrapped
Asset Management II
BT PreservationPlus - Wrapped
Asset Management III
Small Cap Index Fund (Insurance Trust Funds)
BT PreservationPlus Income Fund - Wrapped
EAFE Equity Index Fund (Insurance Funds)
Equity 500 Index (Insurance Trust Funds)
By: /s/ Amy Olmert
----------------------------
Amy Olmert
Vice President of Administration
4/19/2000
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Date
Deutsche Bank Group (Graphic Appears Here)
<PAGE>
Washington, D.C. 20549
FORM N-17F-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR 370.17f-2)
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1. Investment Company Act File Number Date examination
BT Investment Funds 811-4760 completed:
BT Institutional Funds 811-6071 September 30, 1999
BT Pyramid Mutual Funds 811-6576
BT Advisor Funds 811-7347
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2. State Identification Numbers
BT Advisor Funds
AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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3. Exact name of investment company as specified in registrations statement
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4. Address of principal executive office (number, street, city, state, zip code)
1 South Street, Baltimore, Maryland 21202-3220
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INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in
compliance with Rule 17f-2 under the Act and applicable state law,
examines securities and similar investments in the custody of the
investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and
appropriate state securities administrators when filing the
certificate of accounting required by Rule 17f-2 under the Act and
applicable state law. File the original and one copy with the
Securities and Exchange Commission's principal offices in
Washington, D.C., one copy with the regional office for the region
in which the investment company's principal business operations are
conducted, and one copy with the appropriate state
administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
