CASH RESERVES FUND
ANNUAL REPORT
DECEMBER 31, 1994
<PAGE>
CASH RESERVES FUND 1
--------------------------------------------
TABLE OF CONTENTS
- ----------------------------------------------------------------------
<TABLE>
<S> <C>
INTRODUCTION FROM PRESIDENT . . . . . . . . . . . . . . . . . . 2
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER . . . . . . . . 3
CASH RESERVES FUND . . . . . . . . . . . . . . . . . . . . . .
Statement of Assets and Liabilities . . . . . . . . . . . 5
Statement of Operations . . . . . . . . . . . . . . . . . 6
Statement of Changes in Net Assets . . . . . . . . . . . 7
Financial Highlights . . . . . . . . . . . . . . . . . . 8
CASH MANAGEMENT PORTFOLIO
Statement of Assets and Liabilities . . . . . . . . . . . 9
Statement of Operations . . . . . . . . . . . . . . . . . 10
Statement of Changes in Net Assets . . . . . . . . . . . 11
Financial Highlights . . . . . . . . . . . . . . . . . . 12
Schedule of Portfolio Investments . . . . . . . . . . . . 13
CASH RESERVES FUND
Notes to Financial Statements . . . . . . . . . . . . . . 16
Report of Independent Accountants . . . . . . . . . . . . 18
CASH MANAGEMENT PORTFOLIO
Notes to Financial Statements . . . . . . . . . . . . . . 19
Report of Independent Accountants . . . . . . . . . . . . 21
</TABLE>
For shareholder account information and current price and yield quotations,
shareholders may call their relationship manager or servicing agent.
Prospectuses containing more extensive information regarding the Cash Reserves
Fund may be obtained by calling or writing to Investors Fiduciary Trust Company
or Signature Broker-Dealer Services, Inc., the primary Servicing Agent and
Distributor, respectively, of BT Institutional Funds:
BT INSTITUTIONAL FUNDS
INVESTORS FIDUCIARY TRUST COMPANY
127 WEST 10TH STREET
KANSAS CITY, MO 64105
(800) 422-6577
BT INSTITUTIONAL FUNDS
SIGNATURE BROKER-DEALER SERVICES, INC.
6 ST. JAMES AVENUE
BOSTON, MA 02116
(800) 545-1074
You may write to the Cash Reserves Fund at the
following address:
BT INSTITUTIONAL FUNDS
6 ST. JAMES AVENUE
BOSTON, MA 02116
<PAGE>
CASH RESERVES FUND 2
--------------------------------------------
INTRODUCTION FROM PRESIDENT
- -------------------------------------------------------------------------------
February, 1995
Dear Shareholders:
We are pleased to send you the 1994 Annual Report for the BT Institutional
Funds Cash Reserves Fund. This Report is designed to provide you with an
investment overview as well as a financial summary of the Fund's operations for
the period January 25, 1994 (commencement of operations) to December 31, 1994.
In addition, the Report contains a Letter from the Investment Adviser which
explains the factors that affected the Fund's performance for the period
January 25, 1994 (commencement of operations) to December 31, 1994, and the
investment outlook for 1995.
As always, we will continue to closely observe the economic conditions and
markets in 1995. We will continue to attempt to generate a favorable yield for
your investments.
Philip W. Coolidge
President
<PAGE>
CASH RESERVES FUND 3
--------------------------------------------
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER
- -------------------------------------------------------------------------------
The economy's surprising strength was the main story of 1994, as expectations
that the economy would slow were met with disappointment. Growth in GDP for the
year is likely to come in around 4%, significantly higher than the Federal
Reserve's non-inflationary target level of 2.5%. In response to this sparkling
performance by the economy, the Federal Reserve raised interest rates six times
during the course of the year, increasing the Fed fund's target from 3% in
January to 5.5% in December. The last increase in November, substantially
raised the target level 75 basis points in response to very strong third
quarter growth.
While it appears that the Federal Reserve has been pre-emptive in its policy,
the market continues to be worried about future inflation levels, even though
the inflation indices for 1994 have been remarkably well-behaved. To date, no
real pressure on wages has emerged, but there is definite price pressure
building in the production line and manufacturing resources are operating near
capacity levels. Slack in human resources has also been sharply reduced,
leading to the possibility of upward pressure on wages in 1995. The
unemployment rate at year-end was 5.4%, down sharply from 6.7% in January. All
components of the December employment report were extremely strong, indicating
that the economy is heading into 1995 on a very solid basis.
The fixed income market's direction in 1995 will depend on the Federal
Reserve's success in slowing the economic growth and controlling future
inflation levels. We believe that several more tightenings may be necessary
before the economy begins to slow.
While we believe that the economy will begin to slow in 1995, it is too early
to become positive about the short end of the fixed income market. The market
currently discounts some additional tightening. However, since no one knows how
long it will take to reduce economic activity or what magnitude of restraints
are yet to be applied, it is premature to become bullish. As a result, we
continued to take the same defensive market posture that has characterized our
position throughout 1994. At the same time, we have been taking advantage of
the sharp slope in the yield curve while adhering to our overall outlook for
the market. Average maturities have continued to be maintained short of the
peer group and this position has allowed the yield on the Fund to rise with
little lag to the rise in market rates.
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
ABOUT THE BURKE VANDERMAST
PORTFOLIO MANAGER Managing Director
- Twenty-nine years of investment experience
- Joined Bankers Trust in 1986
- B.S. -- Pennsylvania State University
</TABLE>
<PAGE>
CASH RESERVES FUND 4
--------------------------------------------
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
OBJECTIVE Seeks high current income consistent with liquidity and preservation of capital.
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INSTRUMENTS Bank obligations, commercial paper, U.S. Treasury obligations and repurchase agreements
collateralized by U.S. Treasury obligations.
- ------------------------------------------------------------------------------------------------------------------------------------
RATINGS S&P: AAAm
Moody's: AAA
- ------------------------------------------------------------------------------------------------------------------------------------
STATUS AT Seven day effective yield: 5.81%
DECEMBER 31, 1994 Average maturity: 16 days
Net Assets: $920.7 million
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
DIVERSIFICATION OF PORTFOLIO
INVESTMENTS BY ASSET TYPE
as of December 31, 1994
(percentages are based on market value)
[GRAPH]
<PAGE>
CASH RESERVES FUND 5
--------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------------------------
December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- --------------------------------------------------------------------------------------------------------------
Investment in Cash Management Portfolio, at Value $925,818,351
- --------------------------------------------------------------------------------------------------------------
Deferred Organizational Expense 4,054
- --------------------------------------------------------------------------------------------------------------
Prepaid Expenses 1,328
- --------------------------------------------------------------------------------------------------------------
Total Assets 925,823,733
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Due to Bankers Trust 47,178
- --------------------------------------------------------------------------------------------------------------
Dividends Payable 5,032,433
- --------------------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 22,428
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 5,102,039
- --------------------------------------------------------------------------------------------------------------
NET ASSETS (Applicable to 921,663,806 Outstanding Shares of $.001 Par Value
Per Share, Unlimited Number of Shares of Beneficial Interest Authorized) $920,721,694
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, Subscription and Redemption Price Per Share
($920,721,694/921,663,806 Shares) $ 1.00
- --------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest, at Par $ 921,664
- --------------------------------------------------------------------------------------------------------------
Paid-in Capital 920,742,142
- --------------------------------------------------------------------------------------------------------------
Accumulated Net Realized (Loss) from Securities Transactions (942,112)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1994 $920,721,694
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
CASH RESERVES FUND 6
--------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------
For the period January 25, 1994 (Commencement of Operations) to December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- --------------------------------------------------------------------------------------------------------------
Income Allocated from Cash Management Portfolio, net $35,868,156
- --------------------------------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------------------------------
Administration and Services Fee $ 414,739
- --------------------------------------------------------------------------------------------------------------
Professional Fees 9,416
- --------------------------------------------------------------------------------------------------------------
Shareholders Reports 16,252
- --------------------------------------------------------------------------------------------------------------
Registration Fees 479
- --------------------------------------------------------------------------------------------------------------
Amortization of Organizational Expenses 946
- --------------------------------------------------------------------------------------------------------------
Trustees Fees 6,079
- --------------------------------------------------------------------------------------------------------------
Insurance 1,047
- --------------------------------------------------------------------------------------------------------------
Miscellaneous 3,323
- --------------------------------------------------------------------------------------------------------------
Total Expenses 452,281
- --------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (452,281) -
- --------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 35,868,156
- --------------------------------------------------------------------------------------------------------------
NET REALIZED (LOSS) FROM SECURITIES TRANSACTIONS (6,808,107)
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $29,060,049
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
CASH RESERVES FUND 7
--------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------
For the period
January 25, 1994
(Commencement
of Operations) to
December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
- --------------------------------------------------------------------------------------------------------------
Net Investment Income $ 35,868,156
- --------------------------------------------------------------------------------------------------------------
Net Realized (Loss) from Securities Transactions (6,808,107)
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 29,060,049
- --------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS
- --------------------------------------------------------------------------------------------------------------
Net Investment Income (35,868,156)
- --------------------------------------------------------------------------------------------------------------
Net (Decrease) in Net Assets from Dividends (35,868,156)
- --------------------------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
(at Net Asset Value of $1.00 per share)
- --------------------------------------------------------------------------------------------------------------
Net Proceeds from Shares Sold 11,171,963,496
- --------------------------------------------------------------------------------------------------------------
Dividends Reinvested 30,040,014
- --------------------------------------------------------------------------------------------------------------
Value of Shares Redeemed (10,280,339,704)
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Transactions in Shares of Beneficial Interest 921,663,806
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTION OF CAPITAL
- --------------------------------------------------------------------------------------------------------------
Proceeds Contributed 5,865,995
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Contribution of Capital 5,865,995
- --------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 920,721,694
- --------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Beginning of Period -
- --------------------------------------------------------------------------------------------------------------
End of Period $ 920,721,694
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
CASH RESERVES FUND 8
--------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for the
period indicated for the Cash Reserves Fund.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
For the period
January 25, 1994
(Commencement of
Operations) to
December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C>
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period $1.00
-----
Income from Investment Operations
Net Investment Income 0.04
Net Realized (Loss) from Securities Transactions (0.01)
-----
Total from Investment Operations 0.03
-----
Contribution of Capital 0.01
-----
Less Dividends
Dividends from Net Investment Income (0.04)
-----
Total Dividends (0.04)
-----
Net Asset Value, End of Period $1.00
-----
TOTAL INVESTMENT RETURN 4.32%*+
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income to Average Net Assets 4.32%*
Ratio of Expenses to Average Net Assets, Including Expenses
of the Cash Management Portfolio 0.18%*
Decrease Reflected in Above Expense Ratio Due to Absorption
of Expenses by Bankers Trust 0.08%*
Net Assets, End of Period (000's omitted) $920,722
</TABLE>
* Annualized
+ Increased by 0.81% due to Contribution of Capital.
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
CASH MANAGEMENT PORTFOLIO 9
--------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------------------------
December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- --------------------------------------------------------------------------------------------------------------
Investments, at Value $2,779,552,764
- --------------------------------------------------------------------------------------------------------------
Cash 439,282
- --------------------------------------------------------------------------------------------------------------
Interest Receivable 5,491,473
- --------------------------------------------------------------------------------------------------------------
Prepaid Expenses 2,180
- --------------------------------------------------------------------------------------------------------------
Total Assets 2,785,485,699
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Due to Bankers Trust 437,408
- --------------------------------------------------------------------------------------------------------------
Payable for Securities Purchased 50,000,000
- --------------------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 22,947
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 50,460,355
- --------------------------------------------------------------------------------------------------------------
NET ASSETS $2,735,025,344
- --------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Paid-in Capital $2,735,025,344
- --------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1994 $2,735,025,344
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 10
--------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------
For the year ended December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- --------------------------------------------------------------------------------------------------------------
Interest $112,126,137
- --------------------------------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------------------------------
Advisory Fee $3,807,085
- --------------------------------------------------------------------------------------------------------------
Administration and Services Fee 1,269,028
- --------------------------------------------------------------------------------------------------------------
Professional Fees 24,416
- --------------------------------------------------------------------------------------------------------------
Trustees Fees 8,870
- --------------------------------------------------------------------------------------------------------------
Insurance 3,113
- --------------------------------------------------------------------------------------------------------------
Miscellaneous 20,013
- --------------------------------------------------------------------------------------------------------------
Total Expenses 5,132,525
- --------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (537,651) 4,594,874
- --------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 107,531,263
- --------------------------------------------------------------------------------------------------------------
NET REALIZED (LOSS) FROM SECURITIES TRANSACTIONS (21,679,797)
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 85,851,466
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 11
--------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------
For the For the
year ended year ended
December December
31, 1994 31, 1993
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
- --------------------------------------------------------------------------------------------------------------
Net Investment Income $ 107,531,263 $ 54,741,050
- --------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions (21,679,797) 93,837
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 85,851,466 54,834,887
- --------------------------------------------------------------------------------------------------------------
FROM CAPITAL TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------
Proceeds from Capital Invested 29,684,647,236 8,033,536,028
- --------------------------------------------------------------------------------------------------------------
Value of Capital Withdrawn (28,984,267,374) (7,596,983,495)
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Capital Transactions 700,379,862 436,552,533
- --------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTION OF CAPITAL
- --------------------------------------------------------------------------------------------------------------
Proceeds Contributed 18,718,663 -
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Contribution of Capital 18,718,663 -
- --------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 804,949,991 491,387,420
- --------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Beginning of Year 1,930,075,353 1,438,687,933
- --------------------------------------------------------------------------------------------------------------
End of Year $ 2,735,025,344 $ 1,930,075,353
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 12
--------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Contained below are selected ratios and supplemental data for each of the
periods indicated for the Cash Management Portfolio.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
For the period
July 23, 1990
(Commencement
For the year ended December 31, of Operations)
------------------------------------------------- to December
1994 1993 1992 1991 31, 1990
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
<S> <C> <C> <C> <C> <C>
Ratio of Net Investment Income to
Average Net Assets 4.24% 3.06% 3.52% 5.85% 7.90%*
Ratio of Expenses to
Average Net Assets 0.18% 0.20% 0.22% 0.25% 0.25%*
Decrease Reflected in Above Ratio of
Expenses to Average Net Assets Due
to Absorption of Expenses by Bankers Trust 0.02% 0.00%+ 0.00%+ 0.01% 0.01%*
Net Assets, End of Period (000's omitted) $2,735,025 $1,930,075 $1,438,688 $934,402 $403,932
</TABLE>
* Annualized
+ Less than 0.01%
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 13
--------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------
December 31, 1994
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
CERTIFICATES OF DEPOSIT - 22.42%
- -------------------------------------------------------------------------------------------------------------------------
Bank of Nova Scotia:
$ 50,000,000 5.75%, 1/17/95 $ 50,000,000
30,000,000 5.71%, 2/1/95 29,999,351
- -------------------------------------------------------------------------------------------------------------------------
Banque Nationale de Paris:
50,000,000 5.54%, 1/3/95 50,000,055
50,000,000 6.01%, 2/1/95 50,000,426
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 Bayerische Hypo Bank, 6.16%, 2/1/95 25,000,426
- -------------------------------------------------------------------------------------------------------------------------
Bayerische Vereinsbank:
50,000,000 5.79%, 1/12/95 49,997,688
20,000,000 6.17%, 2/13/95 19,998,793
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 Canadian Imperial, 5.77%, 1/17/95 50,000,000
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 Commerz Bank, 6.22%, 3/17/95 24,999,945
- -------------------------------------------------------------------------------------------------------------------------
55,000,000 Hessen Thuringer, 5.80%, 1/25/95 54,998,990
- -------------------------------------------------------------------------------------------------------------------------
19,250,000 Industrial Bank of Japan, 6.07%, 1/10/95 19,250,048
- -------------------------------------------------------------------------------------------------------------------------
National Westminster:
20,000,000 5.76%, 1/17/95 19,999,024
43,000,000 5.80%, 1/23/95 42,999,854
- -------------------------------------------------------------------------------------------------------------------------
Sanwa:
25,000,000 5.96%, 1/03/95 25,000,028
48,000,000 6.11%, 1/12/95 48,000,292
- -------------------------------------------------------------------------------------------------------------------------
Societe Generale:
40,000,000 5.52%, 1/27/95 40,001,019
13,000,000 6.10%, 1/31/95 12,993,722
- -------------------------------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Amortized Cost $613,239,661) $613,239,661
- -------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 29.61%
- -------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 Banco Bilbao Vizcaya, 6.20%, 3/15/95 $ 24,685,694
- -------------------------------------------------------------------------------------------------------------------------
Banco Hispano American:
25,000,000 6.18%, 2/1/95 24,866,958
25,000,000 5.95%, 2/16/95 24,809,931
- -------------------------------------------------------------------------------------------------------------------------
42,000,000 Bank of New York, 5.95%, 1/24/95 41,840,342
- -------------------------------------------------------------------------------------------------------------------------
10,250,000 Bat Capital, 6.03%, 1/6/95 10,241,416
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 14
--------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------
December 31, 1994
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
$ 12,000,000 BTR Dunlop, 5.48%, 1/17/95 $ 11,970,773
- -------------------------------------------------------------------------------------------------------------------------
19,250,000 Canadian Wheat Board, 6.00%, 2/1/95 19,150,542
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 Corporate Asset Funding, 5.66%, 1/18/95 24,933,181
- -------------------------------------------------------------------------------------------------------------------------
Ciesco:
25,000,000 6.02%, 2/02/95 24,866,222
25,000,000 6.10%, 2/22/95 24,779,722
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 Commerz Bank, 6.00%, 1/30/95 49,758,333
- -------------------------------------------------------------------------------------------------------------------------
Daimler Benz North American:
15,500,000 5.65%, 1/9/95 15,480,539
50,000,000 5.92%, 2/14/95 49,638,222
- -------------------------------------------------------------------------------------------------------------------------
General Electric Capital:
8,550,000 5.90%, 1/12/95 8,534,586
20,000,000 6.03%, 2/14/95 19,852,600
- -------------------------------------------------------------------------------------------------------------------------
20,000,000 Goldman Sachs, 6.05%, 1/4/95 19,989,917
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 Metropolitan Life Funding, 5.66%, 1/17/95 49,874,222
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 Monte Dei Paschi, 6.02%, 1/31/95 24,874,583
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 National Rural Utility, 5.73%, 1/10/95 24,964,188
- -------------------------------------------------------------------------------------------------------------------------
23,000,000 New South Wales Treasury, 5.95%, 1/23/95 22,916,370
- -------------------------------------------------------------------------------------------------------------------------
Norfolk Southern:
8,418,000 5.45%, 1/24/95 8,388,689
15,600,000 6.10%, 2/13/95 15,486,337
- -------------------------------------------------------------------------------------------------------------------------
26,500,000 Panasonic Finance, 5.90%, 1/5/95 26,482,628
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 Philip Morris, 5.85%, 1/17/95 24,935,000
- -------------------------------------------------------------------------------------------------------------------------
32,000,000 Prudential Funding, 6.05%, 1/11/95 31,946,222
- -------------------------------------------------------------------------------------------------------------------------
Swedish Export Credit:
10,300,000 5.45%, 1/26/95 10,261,017
25,000,000 5.48%, 1/23/95 24,916,278
25,000,000 5.45%, 1/31/95 24,886,458
50,000,000 6.10%, 2/6/95 49,695,000
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 Swiss Bank, 5.40%, 1/4/95 49,977,500
- -------------------------------------------------------------------------------------------------------------------------
25,000,000 Wool International, 5.93%, 2/16/95 24,810,569
- -------------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Amortized Cost $809,814,039) $ 809,814,039
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 15
--------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------
December 31, 1994
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EURODOLLAR TIME DEPOSITS - 46.31%
- -------------------------------------------------------------------------------------------------------------------------
$100,000,000 Bank of Montreal, 6.125%, 1/3/95 $ 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 Banco Hispano American, 6.125%, 1/3/95 50,000,000
- -------------------------------------------------------------------------------------------------------------------------
Bank of Tokyo:
50,000,000 5.812%, 1/4/95 50,000,000
50,000,000 6.125%, 1/9/95 50,000,000
- -------------------------------------------------------------------------------------------------------------------------
75,000,000 Barclays Bank, 5.50%, 1/3/95 75,000,000
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 Canadian Imperial, 6.00%, 1/3/95 50,000,000
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 Chemical, 6.25%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
40,000,000 Citibank Nassau, 4.50%, 1/3/95 40,000,000
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 Credit Agricole, 6.125%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
75,000,000 Mitsubishi, 6.00%, 1/3/95 75,000,000
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 National City Bank of Cleveland, 6.125%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
50,000,000 National Westminster, 6.375%, 1/5/95 50,000,000
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 Nordeutsche Landesbank, 6.25%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 Royal Bank of Canada, 6.125%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 Royal Bank of Scotland, 6.125%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
26,524,689 Trust Co. Bank of Atlanta, 3.00%, 1/3/95 26,524,689
- -------------------------------------------------------------------------------------------------------------------------
100,000,000 Wells Fargo Nassau, 6.75%, 1/3/95 100,000,000
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS
(Amortized Cost $1,266,524,689) $1,266,524,689
- -------------------------------------------------------------------------------------------------------------------------
FLOATING RATE NOTES - 3.29%
- -------------------------------------------------------------------------------------------------------------------------
$ 50,000,000 J P Morgan ECD, Variable Rate Weekly, 5.76%, 7/18/95 $ 49,983,726
- -------------------------------------------------------------------------------------------------------------------------
Student Loan Marketing Association:
15,000,000 Variable Rate Weekly, 5.69%, 1/12/95 15,000,000
25,000,000 Variable Rate Weekly, 5.91%, 9/28/98 24,990,649
- -------------------------------------------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Amortized Cost $89,974,375) $ 89,974,375
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Amortized Cost $2,779,552,764) 101.63% $2,779,552,764
- -------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (1.63%) (44,527,420)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $2,735,025,344
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH RESERVES FUND 16
--------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
A. Organization
BT Institutional Funds (the "Trust") is registered under the Investment Company
Act of 1940 (the "Act"), as amended, as an open-end management investment
company. The Trust was organized on March 26, 1990, as a business trust under
the laws of the Commonwealth of Massachusetts. The Cash Reserves Fund (the
"Fund") is one of the funds offered to investors by the Trust. The Fund
commenced operations and began offering shares of beneficial interest on
January 25, 1994. The Fund invests substantially all of its assets in the Cash
Management Portfolio (the "Portfolio"). The Portfolio is an open-end management
investment company registered under the Act. The Fund seeks to achieve its
investment objective by investing all of its investable assets in the
Portfolio. The value of such investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio. At December 31,
1994, the Fund's investment was approximately 34% of the Portfolio.
The financial statements of the Portfolio, including the Schedule of Portfolio
Investments, are contained elsewhere in this report.
B. Investment Income
The Fund earns interest income, net of expenses, daily on its investment in the
Portfolio. All of the net investment income and realized gains and losses from
the security transactions of the Portfolio are allocated pro rata among the
investors in the Portfolio at the time of such determination.
C. Organizational Expenses
Costs incurred by the Fund in connection with its organization and initial
registration are being amortized over a five year period on a straight-line
basis.
D. Dividends
It is the Fund's policy to declare dividends daily, payable to shareholders of
record as of 4:00 p.m. (E.S.T.) from net investment income. Dividends from net
investment income are paid monthly. Dividends payable to shareholders are
recorded by the Fund on the ex-dividend date, which is the same as the
declaration date. Distributions of net realized short-term and long-term
capital gains, if any, earned by the Fund will be made annually to the extent
they are not offset by any capital loss carryforwards.
The Fund may periodically make reclassifications among certain of its capital
accounts as a result of the timing and characterization of certain income and
capital gains distributions determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principles.
For the period January 25, 1994 (commencement of operations) to December 31,
1994, $5,865,995 of net realized loss from securities transactions was
reclassified to paid-in capital on the Statement of Assets and Liabilities.
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
F. Other
The Trust accounts separately for the assets, liabilities, and operations of
the Fund. Expenses directly attributable to the Fund are charged to the Fund,
while expenses which are attributable to all of the Trust's funds are allocated
among them.
<PAGE>
CASH RESERVES FUND 17
--------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 2 -- FEES AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into an Administration and Services Agreement with Bankers
Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Fund in return for a fee computed daily and paid
monthly at an annual rate of 0.05 of 1% of the Fund's average daily net assets.
For the period January 25, 1994 (commencement of operations) to December 31,
1994, this fee aggregated $414,739.
The Trust has entered into a Distribution Agreement with Signature
Broker-Dealer Services, Inc. ("Signature"). Under the Distribution Agreement
with the Trust, pursuant to Rule 12b-1 of the 1940 Act, Signature may seek
reimbursement, at an annual rate not exceeding 0.20 of 1% of the Fund's average
daily net assets, for expenses incurred in connection with any activities
primarily intended to result in the sale of the Fund's shares. For the period
January 25, 1994 (commencement of operations) to December 31, 1994, there were
no reimbursable expenses incurred under this agreement.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Fund, to the extent necessary, to limit all expenses to 0.00 of 1% of the
average daily net assets of the Fund, excluding expenses of the Portfolio and
0.18 of 1% of the average daily net assets of the Fund, including expenses of
the Portfolio. For the period January 25, 1994 (commencement of operations) to
December 31, 1994, expenses of the Fund have been reduced $452,281.
The Fund is subject to such limitations as may from time to time be imposed by
the Blue Sky laws of states in which the Fund sells its shares. Currently, the
most restrictive jurisdiction imposes expense limitations of 2.5% of the first
$30,000,000 of the average daily net assets, 2.0% of the next $70,000,000, and
1.5% of any excess over $100,000,000.
The Portfolio sold certain structured notes carried at par to an unrelated
third party financial institution at par plus accrued interest pursuant to a
put agreement and that third party financial institution immediately resold
such securities to Bankers Trust New York Corporation, the parent of the
Adviser, at the same price, also pursuant to a put agreement. As a result of
these transactions the Fund's financial statements reflect its pro rata share
of the Portfolio's realized loss on the sale of these securities and a capital
contribution in the amount of $5,865,995.
Certain trustees and officers of the Fund are also directors, officers and/or
employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Fund. Similarly, none of the Fund's
officers received compensation from the Fund.
NOTE 3 -- CAPITAL LOSS CARRYFORWARD
At December 31, 1994, accumulated net realized capital loss carryforward
available as a reduction against future net realized capital gains aggregated
$942,112, which will expire in 2003.
<PAGE>
CASH RESERVES FUND 18
--------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Trustees and Shareholders of
BT Institutional Funds:
We have audited the accompanying statement of assets and liabilities of the
Cash Reserves Fund (one of the funds comprising BT Institutional Funds) as of
December 31, 1994, and the related statement of operations, changes in net
assets, and the financial highlights for the period January 25, 1994
(commencement of operations) to December 31, 1994. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Cash Reserves Fund of BT Institutional Funds as of December 31, 1994, the
results of its operations, the changes in its net assets, and the financial
highlights for the period referred to above, in conformity with generally
accepted accounting principles.
/s/ COOPERS & LYBRAND L.L.P.
- ----------------------------
Kansas City, Missouri
February 14, 1995
<PAGE>
CASH MANAGEMENT PORTFOLIO 19
--------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Cash Management Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on March 26, 1990 as
an unincorporated trust under the laws of New York, and commenced operations on
July 23, 1990. The Declaration of Trust permits the Board of Trustees (the
"Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
Investments are stated at value, as that term is defined in the Act and the
published rules and regulations thereunder. Pursuant to Rule 2a-7 of the Act,
the Portfolio utilizes the amortized cost method to determine value. The
amortized cost method involves valuing a security at its cost on the date of
purchase, and thereafter assuming a constant amortization to maturity of the
difference between the principal amount due at maturity and cost. In the event
that a deviation of 1/2 of 1% or more exists between the Portfolio's net asset
value on the basis of amortized cost and the net asset value calculated by
using available market quotations or an appropriate substitute, the Trustees
will promptly consider what action, if any, should be initiated, and where the
Trustees believe the extent of deviation may result in material dilution or
other unfair results to investors or shareholders, the Trustees shall take such
action to eliminate or reduce, to the extent reasonably practicable, such
dilution or unfair results.
C. Security Transactions and Investment Income
Security transactions are accounted for on a trade date basis (date the order
to buy or sell is executed). Interest income is recorded on the accrual basis
and includes amortization of premium and discount on investments. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Adviser, subject to the
seller's agreement to repurchase and the Portfolio's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Portfolio's custodian, and
pursuant to the terms of the repurchase agreement must have an aggregate market
value greater than or equal to the repurchase price plus accrued interest at
all times. If the value of the underlying securities falls below the value of
the repurchase price plus accrued interest, the Portfolio will require the
seller to deposit additional collateral by the next business day. If the
request for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Portfolio maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller.
<PAGE>
CASH MANAGEMENT PORTFOLIO 20
--------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
D. Investment Income
The Portfolio determines its net investment income (i.e., income other than net
realized long-term and short-term capital gains) on each valuation day and
allocates all such income as well as any realized gains and losses from
security transactions pro rata among the investors in the Portfolio at the time
of such determination.
E. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to it. Therefore, no federal income tax provision is
required. The cost of securities in the Portfolio for federal income tax
purposes is the same as for financial reporting purposes.
NOTE 2 -- FEES AND TRANSACTIONS WITH AFFILIATES
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.05 of 1% of the Portfolio's average daily
net assets. For the year ended December 31, 1994, this fee aggregated
$1,269,028.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at the annual rate of 0.15 of 1% of the
Portfolio's average daily net assets. For the year ended December 31, 1994,
this fee aggregated $3,807,085.
For the period January 1, 1994 to January 24, 1994, Bankers Trust had
voluntarily undertaken to waive and reimburse expenses of the Portfolio, to the
extent necessary, to limit all expenses to 0.20 of 1% of the average daily net
assets of the Portfolio. For the period January 25, 1994 to December 31, 1994,
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Portfolio, to the extent necessary, to limit all expenses to 0.18 of 1% of the
average daily net assets of the Portfolio. For the year ended December 31,
1994, expenses of the Portfolio have been reduced $537,651.
The Portfolio sold certain structured notes carried at par to an unrelated
third party financial institution at par plus accrued interest pursuant to a
put agreement and that third party financial institution immediately resold
such securities to Bankers Trust New York Corporation, the parent of the
Adviser, at the same price, also pursuant to a put agreement. As a result of
these transactions the Portfolio's financial statements reflect a realized loss
on the sale of these securities and a capital contribution in the amount of
$18,718,663.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
<PAGE>
CASH MANAGEMENT PORTFOLIO 21
--------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Trustees and Holders of Beneficial Interest
of the Cash Management Portfolio:
We have audited the accompanying statement of assets and liabilities of the
Cash Management Portfolio, including the schedule of portfolio investments, as
of December 31, 1994, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended and for the period July 23, 1990 (commencement of
operations) to December 31, 1990. These financial statements and financial
highlights are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Cash Management Portfolio as of December 31, 1994, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
/s/ COOPERS & LYBRAND L.L.P.
- ----------------------------
Kansas City, Missouri
February 14, 1995
<PAGE>
INSTITUTIONAL
CASH
MANAGEMENT
FUND
Annual Report
December 31, 1994
INSTITUTIONAL CASH MANAGEMENT FUND 1
-------------------------------------------------
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
INTRODUCTION FROM PRESIDENT . . . . . . . . . . . . . . . . . . . . . . . . . . 2
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER . . . . . . . . . . . . . . . . 3
INSTITUTIONAL CASH MANAGEMENT FUND . . . . . . . . . . . . . . . . . . . . . .
Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . . . 5
Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . 6
Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . 7
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
CASH MANAGEMENT PORTFOLIO . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . . . 9
Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . 10
Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . 11
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Schedule of Portfolio Investments . . . . . . . . . . . . . . . . . . . . 13
INSTITUTIONAL CASH MANAGEMENT FUND
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 16
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . 18
CASH MANAGEMENT PORTFOLIO . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 19
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . 21
</TABLE>
For shareholder account information and current price and yield quotations,
shareholders may call their relationship manager or servicing agent.
Prospectuses containing more extensive information regarding the Institutional
Cash Management Fund may be obtained by calling or writing to Investors
Fiduciary Trust Company or Signature Broker-Dealer Services, Inc., the primary
Servicing Agent and Distributor, respectively, of BT Institutional Funds:
BT INSTITUTIONAL FUNDS
INVESTORS FIDUCIARY TRUST COMPANY
127 WEST 10TH STREET
KANSAS CITY, MO 64105
(800) 422-6577
BT INSTITUTIONAL FUNDS
SIGNATURE BROKER-DEALER SERVICES, INC.
6 ST. JAMES AVENUE
BOSTON, MA 02116
(800) 545-1074
You may write to the Institutional Cash Management Fund at the following
address:
BT INSTITUTIONAL FUNDS
6 ST. JAMES AVENUE
BOSTON, MA 02116
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 2
-------------------------------------------------
INTRODUCTION FROM PRESIDENT
- -------------------------------------------------------------------------------
February, 1995
Dear Shareholders:
We are pleased to send you the 1994 Annual Report for the BT Institutional
Funds Institutional Cash Management Fund. This Report is designed to provide
you with an investment overview as well as a financial summary of the Fund's
operations for the year ended December 31, 1994. In addition, the Report
contains a Letter from the Investment Adviser which explains the factors that
affected the Fund's performance for the year ended December 31, 1994 and the
investment outlook for 1995.
As always, we will continue to closely observe the economic conditions and
markets in 1995. We will continue to attempt to generate a favorable yield for
your investments.
Philip W. Coolidge
President
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 3
-------------------------------------------------
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER
- -------------------------------------------------------------------------------
The economy's surprising strength was the main story of 1994, as expectations
that the economy would slow were met with disappointment. Growth in GDP for the
year is likely to come in around 4%, significantly higher than the Federal
Reserve's non-inflationary target level of 2.5%. In response to this sparkling
performance by the economy, the Federal Reserve raised interest rates six times
during the course of the year, increasing the Fed fund's target from 3% in
January to 5.5% in December. The last increase in November, substantially
raised the target level 75 basis points in response to very strong third
quarter growth.
While it appears that the Federal Reserve has been pre-emptive in its policy,
the market continues to be worried about future inflation levels, even though
the inflation indices for 1994 have been remarkably well-behaved. To date, no
real pressure on wages has emerged, but there is definite price pressure
building in the production line and manufacturing resources are operating near
capacity levels. Slack in human resources has also been sharply reduced,
leading to the possibility of upward pressure on wages in 1995. The
unemployment rate at year-end was 5.4%, down sharply from 6.7% in January. All
components of the December employment report were extremely strong, indicating
that the economy is heading into 1995 on a very solid basis.
The fixed income market's direction in 1995 will depend on the Federal
Reserve's success in slowing the economic growth and controlling future
inflation levels. We believe that several more tightenings may be necessary
before the economy begins to slow.
While we believe that the economy will begin to slow in 1995, it is too early
to become positive about the short end of the fixed income market. The market
currently discounts some additional tightening. However, since no one knows how
long it will take to reduce economic activity or what magnitude of restraints
are yet to be applied, it is premature to become bullish. As a result, we
continued to take the same defensive market posture that has characterized our
position throughout 1994. At the same time, we have been taking advantage of
the sharp slope in the yield curve while adhering to our overall outlook for
the market. Average maturities have continued to be maintained short of the
peer group and this position has allowed the yield on the Fund to rise with
little lag to the rise in market rates.
- -------------------------------------------------------------------------------
ABOUT THE BURKE VANDERMAST
PORTFOLIO MANAGER Managing Director
- Twenty-nine years of investment experience
- Joined Bankers Trust in 1986
- B.S. -- Pennsylvania State University
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 4
-------------------------------------------------
- -------------------------------------------------------------------------------
OBJECTIVE Seeks high current income consistent with
liquidity and preservation of capital.
- -------------------------------------------------------------------------------
INVESTMENT INSTRUMENTS Bank obligations, commercial paper, U.S.
Treasury obligations and repurchase agreements
collateralized by U.S. Treasury obligations.
- -------------------------------------------------------------------------------
RATINGS S&P: AAAm
Moody's: AAA
- -------------------------------------------------------------------------------
STATUS AT Seven day effective yield: 5.77%
DECEMBER 31, 1994 Average maturity: 16 days
Net Assets: $664.1 million
- -------------------------------------------------------------------------------
DIVERSIFICATION OF PORTFOLIO
INVESTMENTS BY ASSET TYPE
as of December 31, 1994
(percentages are based on market value)
[GRAPH]
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 5
-------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------------
December 31, 1994
- -----------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- -----------------------------------------------------------------------------------------------------------
Investment in Cash Management Portfolio, at Value $667,595,047
- -----------------------------------------------------------------------------------------------------------
Prepaid Expenses 1,527
- -----------------------------------------------------------------------------------------------------------
Total Assets 667,596,574
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------
Due to Bankers Trust 10,696
- -----------------------------------------------------------------------------------------------------------
Dividends Payable 3,417,818
- -----------------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 19,559
- -----------------------------------------------------------------------------------------------------------
Total Liabilities 3,448,073
- -----------------------------------------------------------------------------------------------------------
NET ASSETS (Applicable to 664,912,250 Outstanding Shares of $.001 Par Value
Per Share, Unlimited Number of Shares of Beneficial Interest Authorized) $664,148,501
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, Subscription and Redemption Price Per Share
($664,148,501/664,912,250 Shares) $ 1.00
- -----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest, at Par $ 664,912
- -----------------------------------------------------------------------------------------------------------
Paid-in Capital 664,247,338
- -----------------------------------------------------------------------------------------------------------
Accumulated Net Realized (Loss) from Securities Transactions (763,749)
- -----------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1994 $664,148,501
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 6
-------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------------------------------
For the year ended December 31, 1994
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------
Income Allocated from Cash Management Portfolio, net $34,614,481
- -----------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------
Administration and Services Fee $429,664
- -----------------------------------------------------------------------------------------------------------
Professional Fees 10,333
- -----------------------------------------------------------------------------------------------------------
Shareholders Reports 26,918
- -----------------------------------------------------------------------------------------------------------
Registration Fees 1,752
- -----------------------------------------------------------------------------------------------------------
Trustees Fees 12,130
- -----------------------------------------------------------------------------------------------------------
Insurance 1,047
- -----------------------------------------------------------------------------------------------------------
Miscellaneous 7,100
- -----------------------------------------------------------------------------------------------------------
Total Expenses 488,944
- -----------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (59,280) 429,664
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 34,184,817
- -----------------------------------------------------------------------------------------------------------
NET REALIZED (LOSS) FROM SECURITIES TRANSACTIONS (5,994,447)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $28,190,370
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 7
-------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------
For the For the
year ended year ended
December December
31,1994 31, 1993
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------
FROM OPERATIONS
- -----------------------------------------------------------------------------------------------------------
Net Investment Income $ 34,184,817 $ 50,539,583
- -----------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions (5,994,447) 87,828
- -----------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 28,190,370 50,627,411
- -----------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------
Net Investment Income (34,184,817) (50,539,583)
- -----------------------------------------------------------------------------------------------------------
Net Realized Gain from Securities Transactions - (72,311)
- -----------------------------------------------------------------------------------------------------------
Net (Decrease) in Net Assets from Dividends and Distributions (34,184,817) (50,611,894)
- -----------------------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
(at Net Asset Value of $1.00 per share)
- -----------------------------------------------------------------------------------------------------------
Net Proceeds from Shares Sold 10,302,248,027 17,171,194,186
- -----------------------------------------------------------------------------------------------------------
Dividends and Distributions Reinvested 21,787,108 42,909,409
- -----------------------------------------------------------------------------------------------------------
Value of Shares Redeemed (11,509,329,518) (16,698,414,299)
- -----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Transactions in
Shares of Beneficial Interest (1,185,294,383) 515,689,296
- -----------------------------------------------------------------------------------------------------------
FROM CONTRIBUTION OF CAPITAL
- -----------------------------------------------------------------------------------------------------------
Proceeds Contributed 5,215,181 -
- -----------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Contribution of Capital 5,215,181 -
- -----------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (1,186,073,649) 515,704,813
- -----------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------
Beginning of Year 1,850,222,150 1,334,517,337
- -----------------------------------------------------------------------------------------------------------
End of Year $ 664,148,501 $ 1,850,222,150
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 8
-------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for each of
the periods indicated for the Institutional Cash Management Fund.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
For the period
July 25, 1990
(Commencement
For the year ended December 31, of Operations)
-------------------------------------------------- to December
1994 1993 1992 1991 31, 1990
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income 0.04 0.03 0.04 0.06 0.03
Net Realized Gain (Loss) from
Securities Transactions (0.01) 0.00+ 0.00+ 0.00+ -
----- ----- ----- ----- -----
Total from Investment Operations 0.03 0.03 0.04 0.06 0.03
----- ----- ----- ----- -----
Contribution of Capital 0.01 - - - -
----- ----- ----- ----- -----
Less Dividends and Distributions
Dividends from Net Investment Income (0.04) (0.03) (0.04) (0.06) (0.03)
Distributions from Net Realized Gain
from Securities Transactions - (0.00)+ (0.00)+ (0.00)+ -
----- ----- ----- ----- -----
Total Dividends and Distributions (0.04) (0.03) (0.04) (0.06) (0.03)
----- ----- ----- ----- -----
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN 4.18%++ 3.05% 3.58% 6.20% 8.29%*
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income to Average
Net Assets 3.98% 3.01% 3.48% 5.82% 7.90%*
Ratio of Expenses to Average Net Assets,
Including Expenses of the Cash
Management Portfolio 0.23% 0.25% 0.25% 0.25% 0.25%*
Decrease Reflected in Above Expense
Ratio Due to Absorption of Expenses by
Bankers Trust 0.03% 0.02% 0.04% 0.09% 0.21%*
Net Assets, End of Period (000's omitted) $664,149 $1,850,222 $1,334,517 $806,690 $301,546
</TABLE>
* Annualized
+ Less than $0.01 per share
++ Increased by 0.91% due to Contribution of Capital.
See Notes to Financial Statements on Pages 16 and 17
<PAGE>
CASH MANAGEMENT PORTFOLIO 9
-------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------------------------
December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- --------------------------------------------------------------------------------------------------------------
Investments, at Value $2,779,552,764
- --------------------------------------------------------------------------------------------------------------
Cash 439,282
- --------------------------------------------------------------------------------------------------------------
Interest Receivable 5,491,473
- --------------------------------------------------------------------------------------------------------------
Prepaid Expenses 2,180
- --------------------------------------------------------------------------------------------------------------
Total Assets 2,785,485,699
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Due to Bankers Trust 437,408
- --------------------------------------------------------------------------------------------------------------
Payable for Securities Purchased 50,000,000
- --------------------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 22,947
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 50,460,355
- --------------------------------------------------------------------------------------------------------------
NET ASSETS $2,735,025,344
- --------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Paid-in Capital $2,735,025,344
- --------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1994 $2,735,025,344
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 10
-------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------
For the year ended December 31, 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------------------------
Interest $112,126,137
- -------------------------------------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------------------------------------
Advisory Fee $3,807,085
- -------------------------------------------------------------------------------------------------------------
Administration and Services Fee 1,269,028
- -------------------------------------------------------------------------------------------------------------
PROFESSIONAL FEES 24,416
- -------------------------------------------------------------------------------------------------------------
Trustees Fees 8,870
- -------------------------------------------------------------------------------------------------------------
Insurance 3,113
- -------------------------------------------------------------------------------------------------------------
Miscellaneous 20,013
- -------------------------------------------------------------------------------------------------------------
Total Expenses 5,132,525
- -------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (537,651) 4,594,874
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 107,531,263
- -------------------------------------------------------------------------------------------------------------
NET REALIZED (LOSS) FROM SECURITIES TRANSACTIONS (21,679,797)
- -------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 85,851,466
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 11
-------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
For the For the
year ended year ended
December December
31, 1994 31, 1993
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
- -------------------------------------------------------------------------------------------------------------
Net Investment Income $ 107,531,263 $ 54,741,050
- -------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions (21,679,797) 93,837
- -------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 85,851,466 54,834,887
- -------------------------------------------------------------------------------------------------------------
FROM CAPITAL TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------
Proceeds from Capital Invested 29,684,647,236 8,033,536,028
- -------------------------------------------------------------------------------------------------------------
Value of Capital Withdrawn (28,984,267,374) (7,596,983,495)
- -------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Capital Transactions 700,379,862 436,552,533
- -------------------------------------------------------------------------------------------------------------
FROM CONTRIBUTION OF CAPITAL
- -------------------------------------------------------------------------------------------------------------
Proceeds Contributed 18,718,663 -
- -------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Contribution of Capital 18,718,663 -
- -------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 804,949,991 491,387,420
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Beginning of Year 1,930,075,353 1,438,687,933
- -------------------------------------------------------------------------------------------------------------
End of Year $ 2,735,025,344 $ 1,930,075,353
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 12
-------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Contained below are selected ratios and supplemental data for each of the
periods indicated for the Cash Management Portfolio.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
For the period
July 23, 1990
(Commencement
For the year ended December 31, of Operations)
------------------------------------------------- to December
1994 1993 1992 1991 31, 1990
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income to
Average Net Assets 4.24% 3.06% 3.52% 5.85% 7.90%*
Ratio of Expenses to
Average Net Assets 0.18% 0.20% 0.22% 0.25% 0.25%*
Decrease Reflected in Above Ratio of
Expenses to Average Net Assets Due
to Absorption of Expenses by Bankers Trust 0.02% 0.00%+ 0.00%+ 0.01% 0.01%*
Net Assets, End of Period (000's omitted) $2,735,025 $1,930,075 $1,438,688 $934,402 $403,932
</TABLE>
* Annualized
+ Less than 0.01%
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 13
-------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
December 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C>
CERTIFICATES OF DEPOSIT - 22.42%
- -----------------------------------------------------------------------------------------------------
Bank of Nova Scotia:
$ 50,000,000 5.75%, 1/17/95 $ 50,000,000
30,000,000 5.71%, 2/1/95 29,999,351
- -----------------------------------------------------------------------------------------------------
Banque Nationale de Paris:
50,000,000 5.54%, 1/3/95 50,000,055
50,000,000 6.01%, 2/1/95 50,000,426
- -----------------------------------------------------------------------------------------------------
25,000,000 Bayerische Hypo Bank, 6.16%, 2/1/95 25,000,426
- -----------------------------------------------------------------------------------------------------
Bayerische Vereinsbank:
50,000,000 5.79%, 1/12/95 49,997,688
20,000,000 6.17%, 2/13/95 19,998,793
- -----------------------------------------------------------------------------------------------------
50,000,000 Canadian Imperial, 5.77%, 1/17/95 50,000,000
- -----------------------------------------------------------------------------------------------------
25,000,000 Commerz Bank, 6.22%, 3/17/95 24,999,945
- -----------------------------------------------------------------------------------------------------
55,000,000 Hessen Thuringer, 5.80%, 1/25/95 54,998,990
- -----------------------------------------------------------------------------------------------------
19,250,000 Industrial Bank of Japan, 6.07%, 1/10/95 19,250,048
- -----------------------------------------------------------------------------------------------------
National Westminster:
20,000,000 5.76%, 1/17/95 19,999,024
43,000,000 5.80%, 1/23/95 42,999,854
- -----------------------------------------------------------------------------------------------------
Sanwa:
25,000,000 5.96%, 1/03/95 25,000,028
48,000,000 6.11%, 1/12/95 48,000,292
- -----------------------------------------------------------------------------------------------------
Societe Generale:
40,000,000 5.52%, 1/27/95 40,001,019
13,000,000 6.10%, 1/31/95 12,993,722
- -----------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Amortized Cost $613,239,661) $613,239,661
- -----------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 29.61%
- -----------------------------------------------------------------------------------------------------
$ 25,000,000 Banco Bilbao Vizcaya, 6.20%, 3/15/95 $ 24,685,694
- -----------------------------------------------------------------------------------------------------
Banco Hispano American:
25,000,000 6.18%, 2/1/95 24,866,958
25,000,000 5.95%, 2/16/95 24,809,931
- -----------------------------------------------------------------------------------------------------
42,000,000 Bank of New York, 5.95%, 1/24/95 41,840,342
- -----------------------------------------------------------------------------------------------------
10,250,000 Bat Capital, 6.03%, 1/6/95 10,241,416
- -----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 14
-------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
December 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C>
$ 12,000,000 BTR Dunlop, 5.48%, 1/17/95 $ 11,970,773
- -----------------------------------------------------------------------------------------------------
19,250,000 Canadian Wheat Board, 6.00%, 2/1/95 19,150,542
- -----------------------------------------------------------------------------------------------------
25,000,000 Corporate Asset Funding, 5.66%, 1/18/95 24,933,181
- -----------------------------------------------------------------------------------------------------
Ciesco:
25,000,000 6.02%, 2/02/95 24,866,222
25,000,000 6.10%, 2/22/95 24,779,722
- -----------------------------------------------------------------------------------------------------
50,000,000 Commerz Bank, 6.00%, 1/30/95 49,758,333
- -----------------------------------------------------------------------------------------------------
Daimler Benz North American:
15,500,000 5.65%, 1/9/95 15,480,539
50,000,000 5.92%, 2/14/95 49,638,222
- -----------------------------------------------------------------------------------------------------
General Electric Capital:
8,550,000 5.90%, 1/12/95 8,534,586
20,000,000 6.03%, 2/14/95 19,852,600
- -----------------------------------------------------------------------------------------------------
20,000,000 Goldman Sachs, 6.05%, 1/4/95 19,989,917
- -----------------------------------------------------------------------------------------------------
50,000,000 Metropolitan Life Funding, 5.66%, 1/17/95 49,874,222
- -----------------------------------------------------------------------------------------------------
25,000,000 Monte Dei Paschi, 6.02%, 1/31/95 24,874,583
- -----------------------------------------------------------------------------------------------------
25,000,000 National Rural Utility, 5.73%, 1/10/95 24,964,188
- -----------------------------------------------------------------------------------------------------
23,000,000 New South Wales Treasury, 5.95%, 1/23/95 22,916,370
- -----------------------------------------------------------------------------------------------------
Norfolk Southern:
8,418,000 5.45%, 1/24/95 8,388,689
15,600,000 6.10%, 2/13/95 15,486,337
- -----------------------------------------------------------------------------------------------------
26,500,000 Panasonic Finance, 5.90%, 1/5/95 26,482,628
- -----------------------------------------------------------------------------------------------------
25,000,000 Philip Morris, 5.85%, 1/17/95 24,935,000
- -----------------------------------------------------------------------------------------------------
32,000,000 Prudential Funding, 6.05%, 1/11/95 31,946,222
- -----------------------------------------------------------------------------------------------------
Swedish Export Credit:
10,300,000 5.45%, 1/26/95 10,261,017
25,000,000 5.48%, 1/23/95 24,916,278
25,000,000 5.45%, 1/31/95 24,886,458
50,000,000 6.10%, 2/6/95 49,695,000
- -----------------------------------------------------------------------------------------------------
50,000,000 Swiss Bank, 5.40%, 1/4/95 49,977,500
- -----------------------------------------------------------------------------------------------------
25,000,000 Wool International, 5.93%, 2/16/95 24,810,569
- -----------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Amortized Cost $809,814,039) $ 809,814,039
- -----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
CASH MANAGEMENT PORTFOLIO 15
-------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
December 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C>
EURODOLLAR TIME DEPOSITS - 46.31%
- -----------------------------------------------------------------------------------------------------
$100,000,000 Bank of Montreal, 6.125%, 1/3/95 $ 100,000,000
- -----------------------------------------------------------------------------------------------------
50,000,000 Banco Hispano American, 6.125%, 1/3/95 50,000,000
- -----------------------------------------------------------------------------------------------------
Bank of Tokyo:
50,000,000 5.812%, 1/4/95 50,000,000
50,000,000 6.125%, 1/9/95 50,000,000
- -----------------------------------------------------------------------------------------------------
75,000,000 Barclays Bank, 5.50%, 1/3/95 75,000,000
- -----------------------------------------------------------------------------------------------------
50,000,000 Canadian Imperial, 6.00%, 1/3/95 50,000,000
- -----------------------------------------------------------------------------------------------------
100,000,000 Chemical, 6.25%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
40,000,000 Citibank Nassau, 4.50%, 1/3/95 40,000,000
- -----------------------------------------------------------------------------------------------------
100,000,000 Credit Agricole, 6.125%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
75,000,000 Mitsubishi, 6.00%, 1/3/95 75,000,000
- -----------------------------------------------------------------------------------------------------
100,000,000 National City Bank of Cleveland, 6.125%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
50,000,000 National Westminster, 6.375%, 1/5/95 50,000,000
- -----------------------------------------------------------------------------------------------------
100,000,000 Nordeutsche Landesbank, 6.25%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
100,000,000 Royal Bank of Canada, 6.125%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
100,000,000 Royal Bank of Scotland, 6.125%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
26,524,688 Trust Co. Bank of Atlanta, 3.00%, 1/3/95 26,524,689
- -----------------------------------------------------------------------------------------------------
100,000,000 Wells Fargo Nassau, 6.75%, 1/3/95 100,000,000
- -----------------------------------------------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS
(Amortized Cost $1,266,524,689) $1,266,524,689
- -----------------------------------------------------------------------------------------------------
FLOATING RATE NOTES - 3.29%
- -----------------------------------------------------------------------------------------------------
$ 50,000,000 J P Morgan ECD, Variable Rate Weekly, 5.76%, 7/18/95 $ 49,983,726
- -----------------------------------------------------------------------------------------------------
Student Loan Marketing Association:
15,000,000 Variable Rate Weekly, 5.69%, 1/12/95 15,000,000
25,000,000 Variable Rate Weekly, 5.91%, 9/28/98 24,990,649
- -----------------------------------------------------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Amortized Cost $89,974,375) $ 89,974,375
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Amortized Cost $2,779,552,764) 101.63% $2,779,552,764
- -----------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (1.63%) (44,527,420)
- -----------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $2,735,025,344
- -----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 16
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION AND SIGNIFICANT
ACCOUNTING POLICIES
A. Organization
BT Institutional Funds (the "Trust") is registered under the Investment Company
Act of 1940 (the "Act"), as amended, as an open-end management investment
company. The Trust was organized on March 26, 1990, as a business trust under
the laws of the Commonwealth of Massachusetts. The Institutional Cash
Management Fund (the "Fund") is one of the funds offered to investors by the
Trust. The Fund commenced operations and began offering shares of beneficial
interest on July 25, 1990. The Fund invests substantially all of its investable
assets in the Cash Management Portfolio (the "Portfolio"). The Portfolio is an
open-end management investment company registered under the Act. The Fund seeks
to achieve its investment objective by investing all of its investable assets
in the Portfolio. The value of such investment in the Portfolio reflects the
Fund's proportionate interest in the net assets of the Portfolio. At December
31, 1994, the Fund's investment was approximately 24% of the Portfolio.
The financial statements of the Portfolio, including the Schedules of Portfolio
Investments, are contained elsewhere in this report.
B. Investment Income
The Fund earns interest income, net of expenses, daily on its investment in the
Portfolio. All of the net investment income and realized gains and losses from
the security transactions of the Portfolio are allocated pro rata among the
investors in the Portfolio at the time of such determination.
C. Dividends
It is the Fund's policy to declare dividends daily, payable to shareholders of
record as of 4:00 p.m. (E.S.T.) from net investment income. Dividends from net
investment income are paid monthly. Dividends payable to shareholders are
recorded by the Fund on the ex-dividend date, which is the same as the
declaration date. Distributions of net realized short-term and long-term
capital gains, if any, earned by the Fund will be made annually to the extent
they are not offset by any capital loss carryforwards.
The Fund may periodically make reclassifications among certain of its capital
accounts as a result of the timing and characterization of certain income and
capital gains distributions determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principles.
For the year ended December 31,1994, $5,215,181 of net realized loss from
securities transactions was reclassified to paid-in capital on the Statement of
Assets and Liabilities.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
E. Other
The Trust accounts separately for the assets, liabilities, and operations of
the Fund. Expenses directly attributable to the Fund are charged to the Fund,
while expenses which are attributable to all of the Trust's funds are allocated
among them.
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 17
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 2 - FEES AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into an Administration and Services Agreement with Bankers
Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Fund in return for a fee computed daily and paid
monthly at an annual rate of 0.05 of 1% of the Fund's average daily net assets.
For the year ended December 31, 1994, this fee aggregated $429,664.
The Trust has entered into a Distribution Agreement with Signature
Broker-Dealer Services, Inc. ("Signature"). Under the Distribution Agreement
with the Trust, pursuant to Rule 12b-1 of the 1940 Act, Signature may seek
reimbursement, at an annual rate not exceeding 0.10 of 1% of the Fund's average
daily net assets, for expenses incurred in connection with any activities
primarily intended to result in the sale of the Fund's shares. For the year
ended December 31, 1994, there were no reimbursable expenses incurred under
this agreement.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Fund, to the extent necessary, to limit all expenses to 0.05 of 1% of the
average daily net assets of the Fund, excluding expenses of the Portfolio. For
the period January 1, 1994 to January 24, 1994 Bankers Trust had voluntarily
undertaken to waive and reimburse the expenses of the Fund including the
expenses of the Portfolio, to the extent necessary, to limit all expenses to
0.25 of 1% of the average daily net assets of the Fund. For the period January
25, 1994 to December 31, 1994 Bankers Trust has voluntarily undertaken to waive
and reimburse the expenses of the Fund including the expenses of the Portfolio,
to the extent necessary, to limit all expenses to 0.23 of 1% of the average
daily net assets of the Fund. For the year ended December 31, 1994, expenses of
the Fund have been reduced $59,280.
The Fund is subject to such limitations as may from time to time be imposed by
the Blue Sky laws of states in which the Fund sells its shares. Currently, the
most restrictive jurisdiction imposes expense limitations of 2.5% of the first
$30,000,000 of the average daily net assets, 2.0% of the next $70,000,000, and
1.5% of any excess over $100,000,000.
The Portfolio sold certain structured notes carried at par to an unrelated
third party financial institution at par plus accrued interest pursuant to a
put agreement and that third party financial institution immediately resold
such securities to Bankers Trust New York Corporation, the parent of the
Adviser, at the same price, also pursuant to a put agreement. As a result of
these transactions the Fund's financial statements reflect its pro rata share
of the Portfolio's realized loss on the sale of these securities and a capital
contribution in the amount of $5,215,181.
Certain trustees and officers of the Fund are also directors, officers and/or
employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Fund. Similarly, none of the Fund's
officers received compensation from the Fund.
NOTE 3 - CAPITAL LOSS CARRYFORWARD
At December 31, 1994, accumulated net realized capital loss carryforwards
available as a reduction against future net realized capital gains aggregated
$779,266, which will expire in 2003.
<PAGE>
INSTITUTIONAL CASH MANAGEMENT FUND 18
-------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Trustees and Shareholders of
BT Institutional Funds:
We have audited the accompanying statement of assets and liabilities of the
Institutional Cash Management Fund (one of the funds comprising BT
Institutional Funds) as of December 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and the financial highlights
for each of the four years in the period then ended and for the period
July 25,1990 (commencement of operations) to December 31, 1990. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Institutional Cash Management Fund of BT Institutional Funds as of December 31,
1994, the results of its operations, the changes in its net assets, and the
financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.
/s/ COOPERS & LYBRAND L.L.P.
- ----------------------------
Kansas City, Missouri
February 14, 1995
<PAGE>
CASH MANAGEMENT PORTFOLIO 19
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION AND SIGNIFICANT
ACCOUNTING POLICIES
A. Organization
The Cash Management Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on March 26, 1990 as
an unincorporated trust under the laws of New York, and commenced operations on
July 23, 1990. The Declaration of Trust permits the Board of Trustees (the
"Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
Investments are stated at value, as that term is defined in the Act and the
published rules and regulations thereunder. Pursuant to Rule 2a-7 of the Act,
the Portfolio utilizes the amortized cost method to determine value. The
amortized cost method involves valuing a security at its cost on the date of
purchase, and thereafter assuming a constant amortization to maturity of the
difference between the principal amount due at maturity and cost. In the event
that a deviation of 1/2 of 1% or more exists between the Portfolio's net asset
value on the basis of amortized cost and the net asset value calculated by
using available market quotations or an appropriate substitute, the Trustees
will promptly consider what action, if any, should be initiated, and where the
Trustees believe the extent of deviation may result in material dilution or
other unfair results to investors or shareholders, the Trustees shall take such
action to eliminate or reduce, to the extent reasonably practicable, such
dilution or unfair results.
C. Security Transactions and Investment Income
Security transactions are accounted for on a trade date basis (date the order
to buy or sell is executed). Interest income is recorded on the accrual basis
and includes amortization of premium and discount on investments. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Adviser, subject to the
seller's agreement to repurchase and the Portfolio's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Portfolio's custodian, and
pursuant to the terms of the repurchase agreement must have an aggregate market
value greater than or equal to the repurchase price plus accrued interest at
all times. If the value of the underlying securities falls below the value of
the repurchase price plus accrued interest, the Portfolio will require the
seller to deposit additional collateral by the next business day. If the
request for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Portfolio maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller.
<PAGE>
CASH MANAGEMENT PORTFOLIO 20
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
D. Investment Income
The Portfolio determines its net investment income (i.e., income other than net
realized long-term and short-term capital gains) on each valuation day and
allocates all such income as well as any realized gains and losses from
security transactions pro rata among the investors in the Portfolio at the time
of such determination.
E. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to it. Therefore, no federal income tax provision is
required. The cost of securities in the Portfolio for federal income tax
purposes is the same as for financial reporting purposes.
NOTE 2 - FEES AND TRANSACTIONS WITH AFFILIATES
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.05 of 1% of the Portfolio's average daily
net assets. For the year ended December 31, 1994, this fee aggregated
$1,269,028.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at the annual rate of 0.15 of 1% of the
Portfolio's average daily net assets. For the year ended December 31, 1994,
this fee aggregated $3,807,085.
For the period January 1, 1994 to January 24, 1994, Bankers Trust had
voluntarily undertaken to waive and reimburse expenses of the Portfolio, to the
extent necessary, to limit all expenses to 0.20 of 1% of the average daily net
assets of the Portfolio. For the period January 25, 1994 to December 31, 1994,
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Portfolio, to the extent necessary, to limit all expenses to 0.18 of 1% of the
average daily net assets of the Portfolio. For the year ended December 31,
1994, expenses of the Portfolio have been reduced $537,651.
The Portfolio sold certain structured notes carried at par to an unrelated
third party financial institution at par plus accrued interest pursuant to a
put agreement and that third party financial institution immediately resold
such securities to Bankers Trust New York Corporation, the parent of the
Adviser, at the same price, also pursuant to a put agreement. As a result of
these transactions the Portfolio's financial statements reflect a realized loss
on the sale of these securities and a capital contribution in the amount of
$18,718,663.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
<PAGE>
CASH MANAGEMENT PORTFOLIO 21
-------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Trustees and Holders of Beneficial Interest
of the Cash Management Portfolio:
We have audited the accompanying statement of assets and liabilities of the
Cash Management Portfolio, including the schedule of portfolio investments, as
of December 31, 1994, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended and for the period July 23, 1990 (commencement of
operations) to December 31, 1990. These financial statements and financial
highlights are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Cash Management Portfolio as of December 31, 1994, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
/s/ COOPERS & LYBRAND L.L.P.
- ----------------------------
Kansas City, Missouri
February 14, 1995
<PAGE>
ONEY
FUND
ANNUAL REPORT
DECEMBER 31, 1994
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 1
-----------------------------------------------------------
<TABLE>
<CAPTION>
TABLE OF CONTENTS
- ------------------------------------------------------------------------------------
<S> <C>
INTRODUCTION FROM PRESIDENT . . . . . . . . . . . . . . . . . . . . . . . . . . 2
LETTER TO SHAREHOLDERS FROM
INVESTMENT ADVISER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
INSTITUTIONAL TREASURY MONEY FUND
Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . . . 5
Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . 6
Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . 7
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . 8
TREASURY MONEY PORTFOLIO
Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . . . 9
Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . 10
Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . 11
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Schedule of Portfolio Investments . . . . . . . . . . . . . . . . . . . . 13
INSTITUTIONAL TREASURY MONEY FUND
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 15
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . 17
TREASURY MONEY PORTFOLIO
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 18
Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . 20
</TABLE>
For shareholder account information and current price and yield quotations,
shareholders may call their relationship manager or servicing agent.
Prospectuses containing more extensive information regarding the Institutional
Treasury Money Fund may be obtained by calling or writing to Investors
Fiduciary Trust Company or Signature Broker-Dealer Services, Inc., the primary
Servicing Agent and Distributor, respectively, of BT Institutional Funds:
BT INSTITUTIONAL FUNDS
INVESTORS FIDUCIARY TRUST COMPANY
127 WEST 10TH STREET
KANSAS CITY, MO 64105
(800) 422-6577
BT INSTITUTIONAL FUNDS
SIGNATURE BROKER-DEALER SERVICES, INC.
6 ST. JAMES AVENUE
BOSTON, MA 02116
(800) 545-1074
You may write to the Institutional Treasury Money Fund at the following
address:
BT INSTITUTIONAL FUNDS
6 ST. JAMES AVENUE
BOSTON, MA 02116
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 2
----------------------------------------------------------
INTRODUCTION FROM PRESIDENT
- --------------------------------------------------------------------------------
February, 1995
Dear Shareholders:
We are pleased to send you the 1994 Annual Report for the BT Institutional
Treasury Money Fund. This Report is designed to provide you with an investment
overview as well as a financial summary of the Fund's operations for the year
ended December 31, 1994. In addition, the Report contains a Letter from the
Investment Adviser which explains the factors that affected the Fund's
performance and the investment outlook for 1995.
As always, we will continue to closely observe the economic conditions and
markets in 1995. We will attempt to generate a favorable yield for your
investments.
Philip W. Coolidge
President
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 3
------------------------------------------------------------------
LETTER TO SHAREHOLDERS FROM INVESTMENT ADVISER
- --------------------------------------------------------------------------------
The economy's surprising strength was the main story of 1994, as expectations
that the economy would slow were met with disappointment. Growth in GDP for the
year is likely to come in around 4%, significantly higher than the Federal
Reserve's non-inflationary target level of 2.5%. In response to this sparkling
performance by the economy, the Federal Reserve raised interest rates six times
during the course of the year, increasing the Fed funds target from 3% in
January to 5.5% in December. The last increase in November, substantially
raised the target level 75 basis points in response to very strong third
quarter growth.
While it appears that the Federal Reserve has been pre-emptive in its policy,
the market continues to be worried about future inflation levels, even though
the inflation indices for 1994 have been remarkably well-behaved. To date, no
real pressure on the wages has emerged, but there is definite price pressure
building in the production line and manufacturing resources are operating near
capacity levels. Slack in human resources has also been sharply reduced,
leading to the possibility of upward pressure on wages in 1995. The
unemployment rate at year-end was 5.4%, down sharply from 6.7% in January. All
components of the December employment report were extremely strong, indicating
that the economy is heading into 1995 on a very solid basis.
The fixed income market's direction in 1995 will depend on the Federal
Reserve's success in slowing economic growth and controlling future inflation
levels. We believe that several more tightenings may be necessary before the
economy begins to slow, the first of which should come at the next Federal
Reserve meeting in late January, if not before.
While we believe that the economy will begin to slow in 1995, it is too early
to become positive about the short end of the fixed income markets. The market
currently discounts some additional tightening. However, since no one knows how
long it will take to reduce economic activity or what magnitude of restraints
are yet to be applied, it is premature to become bullish. As a result, we
continued to take the same defensive market posture that has characterized our
position throughout 1994. At the same time, we have been taking advantage of
the sharp slope in the yield curve while adhering to our overall outlook for
the market. Average maturities have continued to be maintained short of the
peer group and this position has allowed the yield on the Fund to rise with
little lag to the rise in market rates.
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ABOUT THE BURKE VANDERMAST
PORTFOLIO MANAGER Managing Director
- Twenty-nine years of investment experience
- Joined Bankers Trust in 1986
- B.S. -- Pennsylvania State University
</TABLE>
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 4
---------------------------------------------------------
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
OBJECTIVE Seeks high current income consistent with liquidity and preservation of capital.
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INSTRUMENTS Direct obligations of U.S. Treasury and repurchase agreements of U.S. Treasury obligations.
- --------------------------------------------------------------------------------------------------------------------------------
RATINGS S&P: AAAm
Moody's: Aaa
- --------------------------------------------------------------------------------------------------------------------------------
STATUS AT Seven day effective yield: 5.41%
DECEMBER 31, 1994 Average maturity: 60 days
Net Assets: $182.1 million
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
DIVERSIFICATION OF PORTFOLIO
INVESTMENTS BY ASSET TYPE
as of December 31, 1994
(percentages are based on market value)
[GRAPH]
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 5
---------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------
December 31, 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- -------------------------------------------------------------------------------------------------------------
Investment in Treasury Money Portfolio, at Value $182,813,497
- -------------------------------------------------------------------------------------------------------------
Prepaid Expenses 1,425
- -------------------------------------------------------------------------------------------------------------
Due From Bankers Trust 12,894
- -------------------------------------------------------------------------------------------------------------
Total Assets 182,827,816
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------
Dividends Payable 707,501
- -------------------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 18,917
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 726,418
- -------------------------------------------------------------------------------------------------------------
NET ASSETS (Applicable to 182,124,070 Outstanding Shares of $.001 Par Value
Per Share, Unlimited Number of Shares of Beneficial Interest Authorized) $182,101,398
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, Subscription and Redemption Price Per Share
($182,101,398/182,124,070 Shares) $ 1.00
- -------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest, at Par $ 182,124
- -------------------------------------------------------------------------------------------------------------
Paid-in Capital 181,941,946
- -------------------------------------------------------------------------------------------------------------
Accumulated Net Realized (Loss) from Securities Transactions (22,672)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1994 $182,101,398
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 15 and 16
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 6
---------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------
For the year ended December 31, 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------------------------
Income Allocated from Treasury Money Portfolio, net $5,980,768
- -------------------------------------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------------------------------------
Administration and Services Fee $ 74,378
- -------------------------------------------------------------------------------------------------------------
Professional Fees 10,333
- -------------------------------------------------------------------------------------------------------------
Shareholders Reports 22,578
- -------------------------------------------------------------------------------------------------------------
Registration Fees 651
- -------------------------------------------------------------------------------------------------------------
Trustees Fees 4,555
- -------------------------------------------------------------------------------------------------------------
Insurance 1,047
- -------------------------------------------------------------------------------------------------------------
Miscellaneous 7,327
- -------------------------------------------------------------------------------------------------------------
Total Expenses 120,869
- -------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (46,491) 74,378
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,906,390
- -------------------------------------------------------------------------------------------------------------
NET REALIZED (LOSS) FROM SECURITIES TRANSACTIONS (23,702)
- -------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $5,882,688
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 15 and 16
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 7
--------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
For the For the
year ended year ended
December December
31, 1994 31, 1993
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
- -------------------------------------------------------------------------------------------------------------
Net Investment Income $ 5,906,390 $ 4,229,403
- -------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions (23,702) 16,657
- -------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 5,882,688 4,246,060
- -------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------------------
Net Investment Income (5,906,390) (4,229,403)
- --------------------------------------------------------------------------------------------------------------
Net Realized Gain from Securities Transactions - (15,627)
- --------------------------------------------------------------------------------------------------------------
Net (Decrease) in Net Assets from Dividends and Distributions (5,906,390) (4,245,030)
- --------------------------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
(at Net Asset Value of $1.00 per Share)
- -------------------------------------------------------------------------------------------------------------
Net Proceeds from Shares Sold 1,332,544,359 1,316,779,237
- -------------------------------------------------------------------------------------------------------------
Dividends and Distributions Reinvested 4,168,968 2,287,507
- -------------------------------------------------------------------------------------------------------------
Value of Shares Redeemed (1,298,554,174) (1,277,283,892)
- --------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Transactions in
Shares of Beneficial Interest 38,159,153 41,782,852
- -------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 38,135,451 41,783,882
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Beginning of Year 143,965,947 102,182,065
- -------------------------------------------------------------------------------------------------------------
End of Year $ 182,101,398 $ 143,965,947
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 15 and 16
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 8
---------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for each of
the periods indicated for the Institutional Treasury Money Fund.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
For the period
July 25, 1990
(Commencement
For the year ended December 31, of Operations)
------------------------------------------------------ to December
1994 1993 1992 1991 31, 1990
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
Income from Investment Operations
Net Investment Income 0.04 0.03 0.04 0.06 0.03
Net Realized Gain (Loss) on Securities (0.00)+ 0.00+ 0.00+ 0.00+ 0.00+
----- ----- ----- ----- -----
Total from Investment Operations 0.04 0.03 0.04 0.06 0.03
----- ----- ----- ----- -----
Less Dividends and Distributions
Dividends from Net Investment Income (0.04) (0.03) (0.04) (0.06) (0.03)
Distributions from Net Realized Gain
from Securities Transactions - (0.00)+ (0.00)+ (0.00)+ (0.00)+
----- ----- ----- ----- -----
Total Dividends and Distributions (0.04) (0.03) (0.04) (0.06) (0.03)
----- ----- ----- ----- -----
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN 3.92% 2.94% 3.56% 5.84% 7.90%*
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income to Average
Net Assets 3.97% 2.88% 3.47% 5.54% 7.36%*
Ratio of Expenses to Average Net Assets,
Including Expenses of the Treasury
Money Portfolio 0.25% 0.25% 0.25% 0.25% 0.25%*
Decrease Reflected in Above Expense
Ratio Due to Absorption of Expenses by
Bankers Trust 0.04% 0.03% 0.04% 0.12% 0.39%*
Net Assets, End of Period (000's omitted) $182,101 $143,966 $102,182 $131,406 $57,184
</TABLE>
* Annualized
+ Less than $0.01 per share
See Notes to Financial Statements on Pages 15 and 16
<PAGE>
TREASURY MONEY PORTFOLIO 9
-----------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------
December 31, 1994
<S> <C>
ASSETS
- -------------------------------------------------------------------------------------------------------------
Investments, at Value (including Repurchase Agreements amounting to $157,945,177) $878,967,599
- -------------------------------------------------------------------------------------------------------------
Cash 165,453
- -------------------------------------------------------------------------------------------------------------
Interest Receivable 3,786,293
- -------------------------------------------------------------------------------------------------------------
Prepaid Expenses 2,177
- -------------------------------------------------------------------------------------------------------------
Total Assets 882,921,522
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------
Due to Bankers Trust 120,138
- -------------------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 26,792
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 146,930
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $882,774,592
- -------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Paid-in Capital $882,774,592
- -------------------------------------------------------------------------------------------------------------
NET ASSETS, DECEMBER 31, 1994 $882,774,592
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
TREASURY MONEY PORTFOLIO 10
-----------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------
For the year ended December 31, 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------------------------
Interest $32,373,940
- -------------------------------------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------------------------------------
Advisory Fee $1,176,759
- -------------------------------------------------------------------------------------------------------------
Administration and Services Fee 392,252
- -------------------------------------------------------------------------------------------------------------
Professional Fees 24,521
- -------------------------------------------------------------------------------------------------------------
Trustees Fees 4,167
- -------------------------------------------------------------------------------------------------------------
Insurance 3,116
- -------------------------------------------------------------------------------------------------------------
Miscellaneous 33,555
- -------------------------------------------------------------------------------------------------------------
Total Expenses 1,634,370
- -------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (65,359) 1,569,011
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 30,804,929
- -------------------------------------------------------------------------------------------------------------
NET REALIZED (LOSS) FROM SECURITIES TRANSACTIONS (124,833)
- -------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $30,680,096
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
TREASURY MONEY PORTFOLIO 11
-----------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
For the For the
year ended year ended
December December
31, 1994 31, 1993
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
- -------------------------------------------------------------------------------------------------------------
Net Investment Income $ 30,804,929 $ 32,744,987
- -------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions (124,833) 122,535
- -------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 30,680,096 32,867,522
- -------------------------------------------------------------------------------------------------------------
FROM CAPITAL TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------
Proceeds from Capital Invested 6,929,406,671 4,020,415,048
- -------------------------------------------------------------------------------------------------------------
Value of Capital Withdrawn (6,866,790,869) (4,671,918,153)
- --------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Transactions 62,615,802 (651,503,105)
- --------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 93,295,898 (618,635,583)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------
Beginning of Year 789,478,694 1,408,114,277
- -------------------------------------------------------------------------------------------------------------
End of Year $ 882,774,592 $ 789,478,694
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
TREASURY MONEY PORTFOLIO 12
-----------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
Contained below are selected ratios and supplemental data for each of the
periods indicated for the Treasury Money Portfolio.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
For the period
July 23, 1990
(Commencement
For the year ended December 31, of Operations)
------------------------------------------------------ to December
1994 1993 1992 1991 31, 1990
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RATIOS AND SUPPLEMENTAL DATA
Ratio of Net Investment Income to
Average Net Assets 3.93% 2.93% 3.44% 5.58% 7.53%*
Ratio of Expenses to Average Net Assets 0.20% 0.20% 0.22% 0.25% 0.25%*
Decrease Reflected in Above Ratio of Expenses
to Average Net Assets Due to Absorption
of Expenses by Bankers Trust 0.01% 0.01% 0.01% 0.01% 0.01%*
Net Assets, End of Period (000's omitted) $882,775 $789,479 $1,408,114 $671,138 $531,713
</TABLE>
* Annualized
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
TREASURY MONEY PORTFOLIO 13
-----------------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
- ----------------------------------------------------------------------------------------------------------
December 31, 1994
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C>
UNITED STATES TREASURY BILLS - 68.62%
- ----------------------------------------------------------------------------------------------------------
$ 40,000,000 5.20%, 2/2/95 $ 39,815,289
- ----------------------------------------------------------------------------------------------------------
63,000,000 5.28%, 2/9/95 62,639,932
- ----------------------------------------------------------------------------------------------------------
20,000,000 4.83%, 2/16/95 19,876,567
- ----------------------------------------------------------------------------------------------------------
10,000,000 5.00%, 2/23/95 9,926,389
- ----------------------------------------------------------------------------------------------------------
80,000,000 5.12%, 3/2/95 79,318,333
- ----------------------------------------------------------------------------------------------------------
120,000,000 5.39%, 3/9/95 118,795,489
- ----------------------------------------------------------------------------------------------------------
80,000,000 5.47%, 3/16/95 79,101,311
- ----------------------------------------------------------------------------------------------------------
40,000,000 5.43%, 3/23/95 39,511,750
- ----------------------------------------------------------------------------------------------------------
80,000,000 5.47%, 3/30/95 78,919,068
- ----------------------------------------------------------------------------------------------------------
20,000,000 5.63%, 4/6/95 19,703,125
- ----------------------------------------------------------------------------------------------------------
60,000,000 6.18%, 6/29/95 58,157,791
- ----------------------------------------------------------------------------------------------------------
TOTAL UNITED STATES TREASURY BILLS (Amortized Cost $605,765,044) $605,765,044
- ----------------------------------------------------------------------------------------------------------
UNITED STATES TREASURY NOTES - 13.06%
- ----------------------------------------------------------------------------------------------------------
$ 80,000,000 7.75%, 2/15/95 $ 80,214,844
- ----------------------------------------------------------------------------------------------------------
35,000,000 8.625%, 1/15/95 35,042,534
- ----------------------------------------------------------------------------------------------------------
TOTAL UNITED STATES TREASURY NOTES (Amortized Cost $115,257,378) $115,257,378
- ----------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 17.89%
- ----------------------------------------------------------------------------------------------------------
$ 35,000,000 Repurchase Agreement with Deutsche Bank, Dated
12/30/94, 5.75%, Principal and Interest in the Amount
of $35,011,181, Due 1/3/95, (Collateralized by U.S.
Treasury Note, Par Value $35,590,000, 6.75%,
Due 2/28/97, Value of $35,727,573) $ 35,000,000
- ----------------------------------------------------------------------------------------------------------
17,945,177 Repurchase Agreement with Goldman Sachs,
Dated 12/30/94, 5.50%, Principal and Interest in
the Amount of $17,950,660, Due 1/3/95, (Collateralized
by U.S. Treasury Note, Par Value of $17,690,000, 8.875%
Due 11/15/97, Value of $18,364,920) 17,945,177
- ----------------------------------------------------------------------------------------------------------
35,000,000 Repurchase Agreement with J.P. Morgan, Dated 12/30/94,
5.30%, Principal and Interest in the Amount of $35,010,306,
Due 1/3/95, (Collateralized by U.S. Treasury Note, Par Value
of $35,790,000, 7.375%, Due 11/15/97,
Value of $35,756,323) 35,000,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
TREASURY MONEY PORTFOLIO 14
-----------------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO INVESTMENTS
- ----------------------------------------------------------------------------------------------------------
December 31, 1994
PRINCIPAL
AMOUNT DESCRIPTION VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 35,000,000 Repurchase Agreement with Swiss Bank, Dated 12/30/94,
6.05%, Principal and Interest in the Amount of
$35,011,764, Due 1/3/95, (Collateralized by U.S.
Treasury Notes, Par Value of $13,710,000, 6.375%,
Due 8/15/02, Value of $12,885,258, and $23,000,000,
7.50%, Due 5/15/02, Value of $22,802,324) $ 35,000,000
- ----------------------------------------------------------------------------------------------------------
35,000,000 Repurchase Agreement with Union Bank of
Switzerland, Dated 12/30/94, 5.75%, Principal and
Interest in the Amount of $35,011,181, Due 1/3/95,
(Collateralized by U.S. Treasury Note, Par Value
of $36,995,000, 6.75%, Due 5/31/99, Value of
$35,704,749) 35,000,000
- ----------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS (Amortized Cost $157,945,177) $157,945,177
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (Amortized Cost $878,967,599) 99.57% $878,967,599
- ----------------------------------------------------------------------------------------------------------
Other Assets in Excess of Liabilities 0.43% 3,806,993
- ----------------------------------------------------------------------------------------------------------
NET ASSETS 100.00% $882,774,592
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 15
---------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
A. Organization
BT Institutional Funds (the "Trust") is registered under the Investment Company
Act of 1940 (the "Act"), as amended, as an open-end management investment
company. The Trust was organized on March 26, 1990, as an unincorporated
business trust under the laws of the Commonwealth of Massachusetts. The
Institutional Treasury Money Fund (the "Fund") is one of the institutional
funds offered to investors by the Trust. The Fund commenced operations and
began offering shares of beneficial interest on July 25, 1990. The Fund invests
substantially all of its investable assets in the Treasury Money Portfolio (the
"Portfolio"). The Portfolio is an open-end management investment company
registered under the Act. The Fund seeks to achieve its invest-ment objective
by investing all of its investable assets in the Portfolio. The value of such
investment in the Portfolio reflects the Fund's proportionate interest in the
net assets of the Portfolio. At December 31, 1994, the Fund's investment was
approximately 21% of the Portfolio.
The financial statements of the Portfolio, including the Schedule of Portfolio
Investments, are contained elsewhere in this report.
B. Investment Income
The Fund earns interest income, net of expenses, daily on its investment in the
Portfolio. All of the net investment income and realized and unrealized gains
and losses from the security transactions of the Portfolio are allocated pro
rata among the investors in the Portfolio at the time of such determination.
C. Dividends
It is the Fund's policy to declare dividends daily, payable to shareholders of
record as of 2:00 p.m. (E.S.T.) from net investment income, and to pay these
dividends monthly. Dividends payable to shareholders are recorded by the Fund
on the ex-dividend date, which is the same as the declaration date.
Distributions of net realized short-term and long-term capital gains, if any,
earned by the Fund will be made annually to the extent they are not offset by
any capital loss carryforwards.
The Fund may periodically make reclassifications among certain of its capital
accounts as a result of the timing and characterization of certain income and
capital gains distributions determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principles.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
E. Other
The Trust accounts separately for the assets, liabilities, and operations of
the Fund. Expenses directly attributable to the Fund are charged to the Fund,
while expenses which are attributable to all of the Trust's funds are allocated
among them.
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 16
---------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 - FEES AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into an Administration and Services Agreement with Bankers
Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Fund in return for a fee computed daily and paid
monthly at an annual rate of 0.05 of 1% of the Fund's average daily net assets.
For the year ended December 31, 1994, this fee aggregated $74,378.
The Trust has entered into a Distribution Agreement with Signature
Broker-Dealer Services, Inc. ("Signature"). Under the Distribution Agreement
with the Trust, pursuant to Rule 12b-1 of the 1940 Act, Signature may seek
reimbursement, at an annual rate not exceeding 0.10 of 1% of the Fund's average
daily net assets, for expenses incurred in connection with any activities
primarily intended to result in the sale of the Fund's shares. For the year
ended December 31, 1994, there were no reimbursable expenses incurred under
this agreement.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Fund, to the extent necessary, to limit all expenses to 0.05 of 1% of the
average daily net assets of the Fund, excluding expenses of the Portfolio and
0.25 of 1% of the average daily net assets of the Fund, including expenses of
the Portfolio. For the year ended December 31, 1994, expenses of the Fund have
been reduced $46,491.
The Fund is subject to such limitations as may from time to time be imposed by
the Blue Sky laws of states in which the Fund sells its shares. Currently, the
most restrictive jurisdiction imposes expense limitations of 2.5% of the first
$30,000,000 of the average daily net assets, 2.0% of the next $70,000,000, and
1.5% of any excess over $100,000,000.
Certain trustees and officers of the Fund are also directors, officers and/or
employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Fund. Similarly, none of the Fund's
officers received compensation from the Fund.
NOTE 3 - CAPITAL LOSS CARRYFORWARD
At December 31, 1994, accumulated net realized capital loss carryforwards
available as a reduction against future net realized capital gains aggregated
$23,702, which will expire in 2003.
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 17
---------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Shareholders
of BT Institutional Funds:
We have audited the accompanying statement of assets and liabilities of the
Institutional Treasury Money Fund (one of the funds comprising BT Institutional
Funds) as of December 31, 1994, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
four years in the period then ended and for the period July 25, 1990
(commencement of operations) to December 31, 1990. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reason-able assurance about whether the financial statements and financial
highlights are free of material misstate-ment. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Institutional Treasury Money Fund of BT Institutional Funds as of December 31,
1994, the results of its operations, the changes in its net assets, and the
financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.
/s/ COOPERS & LYBRAND L.L.P.
Kansas City, Missouri
February 14. 1995
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TREASURY MONEY PORTFOLIO 18
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NOTES TO FINANCIAL STATEMENTS
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NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Treasury Money Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on March 26, 1990,
as an unincorporated trust under the laws of New York and commenced operations
on July 23, 1990. The Declaration of Trust permits the Board of Trustees (the
"Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
Investments are stated at value, as that term is defined in the Act and the
published rules and regulations thereunder. Pursuant to Rule 2a-7 of the Act,
the Portfolio utilizes the amortized cost method to determine value. The
amortized cost method involves valuing a security at its cost on the date of
purchase, and thereafter assuming a constant amortization to maturity of the
difference between the principal amount due at maturity and cost. In the event
that a deviation of 1/2 of 1% or more exists between the Portfolio's net asset
value on the basis of amortized cost and the net asset value calculated by
using available market quotations or an appropriate substitute, the Trustees
will promptly consider what action, if any, should be initiated, and where the
Trustees believe the extent of deviation may result in material dilution or
other unfair results to investors or shareholders, the Trustees shall take such
action to eliminate or reduce, to the extent reasonably practicable, such
dilution or unfair results.
C. Security Transactions and Interest Income
Security transactions are accounted for on a trade date basis (date the order
to buy or sell is executed). Interest income is recorded on the accrual basis
and includes amortization or premium and discount on investments. Realized
gains and losses from securities transactions are recorded on the identified
cost basis.
The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Adviser, subject to the
seller's agreement to repurchase and the Portfolio's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Portfolio's custodian, and
pursuant to the terms of the repurchase agreement must have an aggregate market
value greater than or equal to the repurchase price plus accrued interest at
all times. If the value of the underlying securities falls below the value of
the repurchase price plus accrued interest, the Portfolio will require the
seller to deposit additional collateral by the next business day. If the
request for additional collateral is not met, or the seller defaults on its
repurchase obligation, the Portfolio maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller.
<PAGE>
INSTITUTIONAL TREASURY MONEY FUND 19
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NOTES TO FINANCIAL STATEMENTS
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D. Investment Income
The Portfolio determines its net investment income
(i.e., income other than net realized long-term and short-term capital gains)
on each valuation day and allocates all such income as well as any realized
gains and losses from security transactions pro rata among the investors in the
Portfolio at the time of such determination.
E. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to it. Therefore, no federal income tax provision is
required. The cost of securities in the Portfolio for federal income tax
purposes is the same as for financial reporting purposes.
NOTE 2 - FEES AND TRANSACTIONS WITH AFFILIATES
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.05 of 1% of the Portfolio's average daily
net assets. For the year ended December 31, 1994, this fee aggregated $392,252.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at the annual rate of 0.15 of 1% of the
Portfolio's average daily net assets. For the year ended December 31, 1994,
this fee aggregated $1,176,759.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of the
Portfolio, to the extent necessary, to limit all expenses to 0.20 of 1% of the
average daily net assets of the Portfolio. For the year ended December 31,
1994, expenses of the Portfolio have been reduced $65,359.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
<PAGE>
TREASURY MONEY PORTFOLIO 20
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REPORT OF INDEPENDENT ACCOUNTANTS
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To the Trustees and Holders of Beneficial
Interest of the Treasury Money Portfolio:
We have audited the accompanying statement of assets and liabilities of the
Treasury Money Portfolio, including the schedule of portfolio investments, as
of December 31, 1994, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended and for the period July 23, 1990 (commencement of
operations) to December 31, 1990. These financial statements and financial
highlights are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reason-able assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Treasury Money Portfolio as of December 31, 1994, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
/s/ COOPERS & LYBRAND L.L.P.
Kansas City, Missouri
February 14, 1995
