PRICEWATERHOUSECOOPERS PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Telephone: (212) 596-8000
Facsimile: (212) 596-8910
February 22, 2000
Securities and Exchange Commission
73 Tremont Street -- Suite 600
Boston, MA 02108
Dear Sirs:
In compliance with Rule 17f-2 promulgated under the Investment Company Act of
1940, enclosed are our reports covering our examinations of the securities of
the Bankers Trust Company's U.S. Bond Index, Liquid Assets, Small Cap, Cash
Management, Treasury Money, Tax Free Money, NY Tax Free Money, Equity 500 Index,
Intermediate Tax Free, Capital Appreciation, Institutional Daily Assets Fund,
Asset Management, Asset Management II, Asset Management III, Small Cap Index,
Latin American Equity, Pacific Basin Equity, Global High Yield Securities, EAFE
Equity Index, International Equity, Equity 500 Index Fund (Insurance Trust),
Small Cap Index Fund (Insurance Trust), BT Preservation Plus (wrapped), BT
Preservation Plus (unwrapped), BT Preservation Plus Income Fund (wrapped), EAFE
Equity Index Fund (Insurance Trust), Institutional Treasury Asset Fund,
International Small Company Equity, Global Emerging Markets Equity, Quantitative
Equity Fund and Equity Appreciation Fund at the close of business on May 28,
1999.
Very truly yours,
/s/ PricewaterhouseCoopers LLP
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PricewaterhouseCoopers LLP
KJB:mlr
Enclosures
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of:
U.S. Bond Index Portfolio
Liquid Assets Portfolio
Small Cap Portfolio
Cash Management Portfolio
Treasury Money Portfolio
Tax Free Money Portfolio
NY Tax Free Money Portfolio
Equity 500 Index Portfolio
Intermediate Tax Free Portfolio
Capital Appreciation Portfolio
Institutional Daily Assets Fund
Asset Management Portfolio
Asset Management II Portfolio
Asset Management III Portfolio
Small Cap Index Portfolio
Latin American Equity Portfolio
Pacific Basin Equity Portfolio
EAFE Equity Index Portfolio
International Equity Portfolio
Equity 500 Index Fund (Insurance Trust)
Small Cap Index Fund (Insurance Trust)
BT Preservation Plus Portfolio (wrapped)
BT Preservation Plus Portfolio (unwrapped)
BT Preservation Plus Income Fund (wrapped)
EAFE Equity Index Fund (Insurance Trust)
Institutional Treasury Asset Fund
International Small Company Equity Portfolio
Global Emerging Markets Equity Portfolio
Quantitative Equity Fund
Equity Appreciation Fund
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 U.S. Bond Index, Liquid Assets, Small Cap, Cash Management,
Treasury Money, Tax Free Money, NY Tax Free Money, Equity 500 Index,
Intermediate Tax Free, Capital Appreciation, Institutional Daily Assets Fund,
Asset Management, Asset Management II, Asset Management III, Small Cap Index,
Latin American Equity, Pacific Basin Equity, EAFE Equity Index, International
Equity, Equity 500 Index Fund (Insurance Trust), Small Cap Index Fund (Insurance
Trust), BT Preservation Plus (wrapped), BT Preservation Plus (unwrapped), BT
Preservation Plus Income Fund (wrapped), EAFE Equity Index Fund (Insurance
Trust), Institutional Treasury Asset Fund, International Small Company Equity,
<PAGE>
Global Emerging Markets Equity, Quantitative Equity Fund and Equity Appreciation
Fund (collectively the "Portfolios") compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940
("the Act") as of May 28, 1999. Management is responsible for the Portfolios'
compliance with those requirements. Our responsibility is to express an opinion
on management's assertion about the Portfolios' compliance based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Portfolios' 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 May 28, 1999 and with respect to agreement of security purchases
and sales, for the period from February 26, 1999 (the date of our last
examination) through May 28, 1999:
- - Count and inspection of all securities located in the vault of Bankers
Trust in New York;
- - Confirmation of all securities held by institutions in book entry form-The
Federal Reserve Bank of New York, The Depository Trust Company, CREST and
CHESS;
- - Confirmed all securities record-kept at banks with whom the Custodian and
the Portfolios have contracted to provide sub-custodian services without
prior notice to management including Citicorp-Florida, Generale Bank
Belgium, Creditanstalt Bankyerein Austria, Barclays Bank London, Royal Bank
of Canada, Den Danske Bank Denmark, Merita Bank Finland, Banque Paribas
France, Dresdner Bank Germany, National Bank of Greece, Deutsche Bank
India, Standard Charter Bank Indonesia, Allied Irish Bank Ireland, Standard
Charter Bank Hong Kong, Citibank Italy, Sumitomo Bank Tokyo, Standard
Charter Bank Korea, Custodian & Nominees Malaysia, Bancomer Mexico, ABN
AMRO Netherlands, ANZ Nominees Limited, New Zealand, Euroclear Belgium,
Standard Charter Bank Pakistan, Standard Charter Bank Manila, Banco
Espirito Portugal, United Overseas Bank Singapore, Banco Santander Spain,
Svenska Handelsbanken Sweden, Swiss Bank Corp Switzerland, Barclays Bank
Bostwana, Standard Charter Bank Thailand, ABAS Securities, CEDEL, Citibank
Poland, and Citibank Norway;
- - 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
Portfolios and the Custodian;
<PAGE>
- - Confirmation of all repurchase agreements with brokers/banks and agreement
of underlying collateral with Bankers Trust records; and
- - Agreed selected securities purchased and securities sold or matured since
our last report from the books and records of the Portfolios to broker
confirms
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Portfolios' compliance
with specified requirements.
In our opinion, management's assertion that the Portfolios were in compliance
with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of May 28, 1999 with respect to securities reflected in
the investment accounts of the Portfolios is fairly stated, in all material
respects.
This report is intended solely for the information and use of management of the
Portfolios and the Securities and Exchange Commission and should not be used for
any other purpose.
/s/ PricewaterhouseCoopers LLP
New York, New York
February 17, 2000
<PAGE>
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 May 28, 1999, and
from February 26, 1999 through May 28, 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 May 28, 1999, and from February 26, 1999 through May 28, 1999,
with respect to securities reflected in the investment account of the Company.
Deutsche Asset Management.
Institutional Daily Assets Fund
U.S. Bond Index
International Equity
Small Cap Index
Liquid Assets
Latin American Equity
Equity Appreciation Fund
Small Cap Portfolio
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
International Small Company Equity
BT PreservationPlus - Wrapped
Asset Management III
EAFE Equity Index
BT PreservationPlus Income Fund - Wrapped
EAFE Equity Index Fund (Insurance Funds)
Equity 500 Index (Insurance Trust Funds)
Small Cap Index Fund (Insurance Trust Funds)
By: /s/ Amy Olmert
-----------------------------------
Amy Olmert
Vice President of Administration
2/17/00
-----------------------------------
Date
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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 May 28, 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
