o BT INSTITUTIONAL FUNDS o
INSTITUTIONAL
TREASURY MONEY FUND
SEMI-ANNUAL REPORT
------------------
JUNE o 1998
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Table of Contents
Letter to Shareholders 3
BT Institutional Treasury Money Fund
Statement of Assets and Liabilities 5
Statement of Operations 5
Statements of Changes in Net Assets 6
Financial Highlights 7
Notes to Financial Statements 8
Treasury Money Portfolio
Schedule of Portfolio Investments 9
Statement of Operations 11
Statements of Changes in Net Assets 11
Financial Highlights 12
Notes to Financial Statements 13
---------------------
The Fund is not insured by the FDIC and is not a deposit,
obligation of or guar- anteed by Bankers Trust Company. The
Fund is subject to investment risks, including possible loss
of principal amount invested.
---------------------
2
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Letter to Shareholders
We are pleased to present you with this semi-annual report for the BT
Institutional Treasury Money Fund (the "Fund"), providing a detailed review of
the market, the Portfolio, and our outlook. Included are a complete financial
summary of the Fund's operations and a listing of the Portfolio's holdings.
MARKET ACTIVITY
The Treasury market was dominated by foreign activity rather than U.S. economic
factors or Federal Reserve Board policy in the first six months of 1998.
o The hangover effects of the Asian financial crises, which began in Korea,
Indonesia, and Thailand, spread to China and Japan. This both focused the U.S.
markets on that region and also continued to support a flight to quality and,
in turn, a U.S. Treasury rally.
o Domestically, the manufacturing sector of the U.S. economy weakened due to the
impact of the Asian turmoil. However, the service sector, which currently
constitutes approximately two-thirds of the U.S. economy, was extremely
strong. The service sector was supported by a 21 year low in unemployment, by
the wealth effect of the stock market, by an improving real estate market, and
by a low interest rate environment. The bottom line--more disposable income
for consumers.
INVESTMENT INSTRUMENTS
Direct obligations of U.S. Treasury and repurchase agreements collateralized by
U.S. Treasury obligations.
Overall, the short-term market was rather quiet, with its yield curve reasonably
flat. A strong dollar, propelled by a deepening Asian crisis, served as a
positive backdrop for continued low inflation. A combination of low inflation
plus first quarter GDP growth of over 5% supported the markets' perception that
the Federal Reserve Board was on hold. It was. In turn, interest rates remained
relatively stable throughout the period, and price volatility within the
short-term market was at an all-time low.
OBJECTIVE
Seeks high current income consistent with liquidity and preservation of capital.
INVESTMENT REVIEW
By staying disciplined to the purchase of high quality instruments and actively
adjusting sector allocation as market conditions changed, we were able to
produce competitive yields in the Institutional Treasury Money Fund.
Ratings
S&P: AAAm**
Moody's: AAA
ANNUALIZED 7 DAY ANNUALIZED 7 DAY
Periods ended June 30, 1998 CURRENT YIELD EFFECTIVE YIELD
- -----------------------------------------------------------------------------
BT Institutional
Treasury Money Fund* 5.31% 5.45%
- -----------------------------------------------------------------------------
IBC U.S. Treasury and Repo
Money Funds Average 4.89% 5.00%
- -----------------------------------------------------------------------------
We maintained a neutral, close-to-the benchmark weighted average maturity
position throughout most of the semi-annual period. The uncertainty surrounding
the Asian financial crisis caused a "flight to quality" trade, whereby investors
bought a large amount of U.S. Treasury securities. This demand factor, combined
with the smaller issuance of securities by the Treasury, resulted in a very
expensive Treasury market. Thus, we sought to add value by investing in term
repurchase agreements, whose yields were comparatively higher during this
period. This allocation strategy proved to be effective in producing competitive
Fund returns.
Status at June 30, 1998
Seven Day Effective Yield: 5.45%
Average Maturity: 30 days
Net Assets: $2,028.8 million
MANAGER OUTLOOK
We believe the Treasury market should remain fairly positive throughout the
second half of the year for several reasons:
o The Asian crisis continues to loom and the U.S. dollar remains strong--a
positive backdrop for inflation to stay low.
o U.S. economic growth remains solid, the labor market tight, interest rates
stable and volatility low.
o While the Federal Reserve Board reinstituted its tightening bias earlier in
the year, it still seems likely that it will be on hold for a while.
o Japan is facing serious financial troubles, which could impact China and Latin
America in turn. Thus, we expect a continued flight to quality, with U.S.
Treasuries the major beneficiary.
We intend to maintain a relatively neutral average maturity for the near term.
At the same time, we will look to take advantage of any spike in yields or any
issue-specific attractive value opportunities to extend duration, given our view
of slower but still positive economic growth in the future.
- --------------
* Past performance is not indicative of future results. Yields will vary.
Yields quote for money market funds most closely reflect the fund's current
earnings. Although money market funds seek to maintain a share value of
$1.00, there is no guarantee that they will be able to do so. Mutual funds
are not bank deposits or obligations of any bank, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal.
** S&P evaluates a number of factors, including credit quality, market price
exposure and management. Aaa ratings by Moody's are judged to be of an
investment quality similar to Aaa-rated fixed income obligations. Ratings are
subject to change and do not remove market risks.
3
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Letter to Shareholders
We will, of course, continue to closely observe economic conditions and how they
affect the financial markets, as we seek to provide high current income
consistent with liquidity and capital preservation.
As always, we appreciate your ongoing support of the BT Institutional Treasury
Money Fund, and we look forward to continuing to serve your investment needs for
many years ahead.
/s/ Darlene M. Rasel
--------------------------------
Darlene M. Rasel
Portfolio Manager of the
Treasury Money Portfolio
June 30, 1998
DIVERSIFICATION OF PORTFOLIO INVESTMENTS
By Asset Type as of June 30, 1998
(percentages are base don market value)
[PIE CHART APPEARS HERE -- PLOT POINTS BELOW]
U.S. Treasury Bills 3%
U.S. Treasury Notes 17%
Repurchase Agreements 80%
4
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Statement of Assets and Liabilities June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S><C>
Assets
Investment in Treasury Money Portfolio, at Value $ 2,036,364,835
Prepaid Expenses 20,007
---------------
Total Assets 2,036,384,842
---------------
Liabilities
Due to Bankers Trust 57,324
Dividends Payable 7,462,701
Accrued Expenses 59,358
---------------
Total Liabilities 7,579,383
---------------
Net Assets $ 2,028,805,459
===============
Shares Outstanding ($0.001 par value per share, unlimited number of shares of
beneficial interest authorized) 2,028,521,048
===============
Net Asset Value, Offering and
Redemption Price Per Share (net assets divided by shares outstanding) $ 1.00
===============
Composition of Net Assets
Paid-in Capital $ 2,028,521,048
Accumulated Net Realized Gain from Investment Transactions 284,411
---------------
Net Assets, June 30, 1998 $ 2,028,805,459
===============
</TABLE>
Statement of Operations For the six month period ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S><C>
Investment Income
Income Allocated from Treasury Money Portfolio, net $ 56,746,168
---------------
Expenses
Administration and Services Fees 530,538
Printing and Shareholder Reports 10,205
Registration Fees 5,005
Professional Fees 9,685
Trustees Fees 2,105
Miscellaneous 25,835
---------------
Total Expenses 583,373
Less: Expenses Absorbed by Bankers Trust (52,835)
---------------
Net Expenses 530,538
---------------
Net Investment Income 56,215,630
Net Realized Gain from Investment Transactions 118,873
---------------
Net Increase in Net Assets from Operations $ 56,334,503
===============
</TABLE>
See Notes to Financial Statements on Page 8
5
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
six months ended year ended
June 30, 1998* December 31, 1997
--------------- -----------------
<S><C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income $ 56,215,630 $ 86,192,280
Net Realized Gain from Investment Transactions 118,873 7,796
--------------- ----------------
Net Increase in Net Assets from Operations 56,334,503 86,200,076
--------------- ----------------
Distributions to Shareholders
Net Investment Income (56,215,630) (86,192,280)
--------------- ----------------
Total Distributions (56,215,630) (86,192,280)
--------------- ----------------
Capital Transactions in Shares of Beneficial Interest (at Net Asset Value
of $1.00 per share)
Proceeds from Sales of Shares 9,193,755,774 12,747,952,607
Dividend Reinvestments 31,221,421 50,201,504
Cost of Shares Redeemed (9,048,924,307) (12,369,833,138)
--------------- ----------------
Total Increase from Capital Transactions in Shares of Beneficial Interest 176,052,888 428,320,973
--------------- ----------------
Total Increase in Net Assets 176,171,761 428,328,769
Net Assets
Beginning of Period 1,852,633,698 1,424,304,929
--------------- ----------------
End of Period $ 2,028,805,459 $ 1,852,633,698
=============== ================
</TABLE>
- --------------
* Unaudited
See Notes to Financial Statements on Page 8
6
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Financial Highlights
Contained below are selected data for a share outstanding, total investment
return, other supplemental data and ratios to average net assets for each of the
periods indicated for the Institutional Treasury Money Fund.
<TABLE>
<CAPTION>
For the For the years ended December 31,
six months ended ----------------------------------------------------------------
June 30, 1998(2) 1997 1996 1995 1994 1993
---------------- ---------- ---------- ---------- ----------- ------------
<S><C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- -------- --------
Income from Investment Operations
Net Investment Income 0.02 0.05 0.05 0.06 0.04 0.03
Net Realized Gain (Loss) from
Investment Transactions (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1) (0.00)(1)
-------- ------- ------- ------- -------- --------
Total from Investment Operations 0.02 0.05 0.05 0.06 0.04 0.03
-------- ------- ------- ------- -------- --------
Distributions to Shareholders
Net Investment Income (0.02) (0.05) (0.05) (0.06) (0.04) (0.03)
Net Realized Gain from Investment
Transactions -- -- -- (0.00)(1) -- (0.00)(1)
-------- ------- ------- ------- -------- --------
Total Distributions (0.02) (0.05) (0.05) (0.06) (0.04) (0.03)
-------- ------- ------- ------- -------- --------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======== ========
Total Investment Return 2.66% 5.42% 5.22% 5.71% 3.92% 2.94%
Supplemental Data and Ratios:
Net Assets, End of Period
(000s omitted) $2,028,805 $1,852,634 $1,424,305 $1,325,069 $182,101 $143,966
Ratios to Average Net Assets:
Net Investment Income 5.30% 5.26% 5.10% 5.53% 3.97% 2.88%
Expenses, Including Expenses of
the Treasury Money Portfolio 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Decrease Reflected in Above
Expense Ratio Due to Absorption
of Expenses by Bankers Trust 0.00%(3) 0.02% 0.01% 0.07% 0.04% 0.03%
</TABLE>
- --------------
(1) Less than $0.01 per share.
(2) Unaudited
(3) Less than 0.01%.
See Notes to Financial Statements on Page 8
7
<PAGE>
BT INSTITUTIONAL TREASURY MONEY FUND
Notes to Financial Statements (unaudited)
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 June 25, 1990. The Fund invests
substantially all of its 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 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 June 30, 1998, the Fund's investment was
approximately 85% of the Portfolio.
The financial statements of the Portfolio, including the Statement of Net
Assets, are contained elsewhere in this report.
B. Investment Income
The Fund earns 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 and pay monthly to
shareholders from net investment income. Dividends payable to shareholders are
recorded by the Fund on the ex-dividend date. Distributions of net realized
short-term and long-term capital gains, if any, earned by the Fund will be made
annually.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code and distribute its 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 that Fund, while
expenses that are attributable to all of the Trust's funds are allocated among
them.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
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 .05% of the Fund's average daily net assets. At
June 30, 1998, amounts owed under the Administration and Services Agreement
amount to $94,813, net of waived fees of $2,110.
The Trust entered into a Distribution Agreement with Edgewood Services, Inc.
("Edgewood"). Under the Distribution Agreement with the Trust pursuant 12b-1 of
the 1940 Act, Edgewood may seek reimbursement at an annual rate not exceeding
.10% 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 six months ended June 30, 1998, there were no reimbursable
expenses incurred under this agreement. The Fund does not intend to charge 12b-1
fees in the future.
Certain officers of the Fund are also directors, officers and or employees of
Edgewood. None of the officers so affiliated received compensation for services
as officers of the Fund.
Effective August 11, 1998, ICC Distributors, Inc. will replace Edgewood as
distributor of the Trust.
The BT Institutional Treasury Money Fund is a participant with other affiliated
entities in a revolving credit facility ("the revolver") and a discretionary
demand line of credit facility ("collectively the credit facilities") in the
amounts of $50,000,000 and $100,000,000, respectively. A commitment fee of .07%
per annum on the average daily amount of the available commitment is payable on
a quarterly basis and apportioned equally amongst all participants. Amounts
borrowed under the credit facilities will bear interest at a rate per annum
equal to the Federal Funds Rate plus .45%. No amounts were drawn down or
outstanding under the credit facilities as of and for the period ended June 30,
1998.
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Fund, to the extent necessary, to limit all expenses to .05% of
the average daily net assets of the Fund, excluding expenses of the Portfolio
and .25% of the average daily net assets of the Fund, including expenses of the
Portfolio. For the six months ended June 30, 1998, expenses of the Fund have
been reduced by $52,835.
8
<PAGE>
TREASURY MONEY PORTFOLIO
Schedule of Portfolio Investments June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
--------- ----------- -----
<S><C>
UNITED STATES TREASURY NOTES - 16.89%
$ 47,000,000 8.25%, 7/15/98 $ 47,046,171
41,000,000 6%, 9/30/98 41,054,718
22,580,000 5.125%, 11/30/98 22,547,375
167,000,000 5.75%, 12/31/98 167,246,971
45,000,000 4.75%, 8/31/98 44,935,914
45,000,000 6.125%, 8/31/98 45,042,728
35,000,000 4.75%, 8/31/98 34,947,578
------------
Total U.S. Treasury Notes (Amortized Cost - $402,821,455) 402,821,455
------------
UNITED STATES TREASURY BILLS - 3.15%
47,000,000 5.05%, 12/24/98 45,839,622
30,000,000 5.165%, 12/10/98 29,302,725
------------
Total U.S. Treasury Bills (Amortized Cost $75,142,347) 75,142,347
------------
REPURCHASE AGREEMENTS - 79.17%
115,000,000 Tri-party Repurchase Agreement with Canadian Imperial Bank
Dated 6/30/98, 5.50%, Principal and Interest in the amount
of $115,017,569 Due 7/1/98 (Collateralized by U.S. Treasury
Bonds, Par Value of $115,037,387, Coupon rates of 7.5% to
9.25%, Due 2/15/16 to 11/15/16, Value of $117,338,133) 115,000,000
115,000,000 Tri-Party Repurchase Agreement with Chase Manhattan Bank,
Dated 6/30/98, 5.70%, Principal and Interest in the amount
of $115,018,208 Due 7/1/98 (Collateralized by U.S. Treasury
Notes, Par Value of $110,820,000, Coupon rates of 6.25% to
7.50%, Due 01/31/02 to 05/15/02, Value of $117,300,697) 115,000,000
133,000,000 Tri-Party Repurchase Agreement with Deutsche Bank,
Dated 3/10/98, 5.46%, Principal and Interest in the amount
OF $135,449,712, Due 7/6/98 (Collateralized by U.S. Treasury
Notes, Par Value of $135,449,712 Coupon rates of 6.75% &
6.6875% Due from 6/30/99 to 7/31/99, Value of $132,043,282) 133,000,000
175,000,000 Tri-Party Repurchase Agreement with Deutsche Bank,
Dated 4/1/98, 5.46%, Principal and Interest in the amount of
$177,415,992 Due 7/1/98 (Collateralized by U.S.Treasury
Notes Par value of $178,500,001, Coupon rates of 7.75%,
9.375% &14.006%, Due From 6/30/99 to 11/15/11, Value of
$174,406,793) 175,000,000
25,000,000 Open Tri-party Repurchase Agreement with First Boston, 5.49%,
Dated 6/30/98, Daily Variable Rate, Principal amount of $25,000,000
Interest amount varies dependent on rate, Due 12/31/99
(Collateralized by U.S. Treasury Bills, Par Value of $19,624,847,
Coupon rates of 6.125% to 8.125%, Due from 7/9/98 to 6/24/99; U.S. Treasury Bonds,
Par Value of $5,889,395, Coupon rates of 10.375% to 13.125%,
Due from 5/15/01 to 11/15/21, Value of $25,013,962) 25,000,000
50,000,000 Tri-Party Repurchase Agreement with First Boston, 5.46%,
Dated 5/7/98, Principal and Interest in the amount of
$50,455,000 Due 7/6/98 (Collateralized by U.S. Treasury
Notes, Par Value of $50,738,509, Coupon rate of 7.125% to
8.5%, Due from 2/15/00 to 11/15/24, Value of $51,753,280) 50,000,000
2,262,437 Tri-Party Repurchase Agreement with Goldman Sachs, Dated
06/30/98, Principal and Interest in the amount of $2,262,801
Due 7/1/98 (Collateralized by U.S. Treasury Note, Par Value of $2,262,437,
Coupon rate of 5.80% Due 05/21/21, Value of $2,307,896) 2,262,437
</TABLE>
See Notes to Financial Statements on Page 13
9
<PAGE>
TREASURY MONEY PORTFOLIO
Schedule of Portfolio Investments June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
--------- ----------- -----
<S><C>
$115,000,000 Tri-party Repurchase Agreement with Greenwich Capital, Dated
06/30/98, 5.80%, Principal and Interest in the amount of
$115,018,528, Due 7/1/98 (Collateralized by U.S. Treasury
Notes, Par Value of $111,125,000, Coupon rates of 6.5% to
8.45%, Due from 7/12/99 to 5/15/05, Value of $117,302,349) $ 115,000,000
115,000,000 Tri-party Repurchase Agreement with Hong Kong Shanh, Dated
6/30/98, 5.7%, Principal and Interest in the amount of
$115,018,208, Due 7/1/98, (Collateralized by U.S. Treasury
Notes, Par Value of $115,002,843, Coupon rates of 6.5% to
11.25%, Due from 2/15/14 to 11/15/26, Value of $117,302,897) 115,000,000
100,000,000 Tri-party Repurchase Agreement with J.P. Morgan, Dated 6/30/98,
5.75%, Principal & Interest in the amount of $ 100,015,972, Due 7/1/98,
(Collateralized by U.S. Treasury Notes, Par Value of $102,000,648,
Coupon rates of 6.625% to 6.875% Due from 8/15/07 to 2/15/19,
Value of $100,000,635) 100,000,000
175,000,000 Tri-party Repurchase Agreement with J.P. Morgan, Dated
6/30/98 5.75%, Principal & Interest in the amount of
$175,027,951, Due 07/01/98, (Collateralized by U.S. Treasury
Notes, Par Value of $178,500,254, Coupon rate of 5.375% Due
from 08/15/07 to 02/15/19, Value of $175,000,248) 175,000,000
125,000,000 Tri-party Repurchase Agreement with Merrill Lynch, Dated 5/20/98,
5.49%, Principal & Interest in the amount of $126,753,750, Due 8/20/98,
(Collateralized by U.S. Treasury Bonds, Par Value of $125,004,366,
Coupon rates of 8.125% to 13.375% Due from 8/15/01 to 8/15/19, Value of
$127,504,444) 125,000,000
138,000,000 Tri-party Repurchase Agreement with Merrill Lynch, Dated
4/6/98, 5.45%, Principal & Interest in the amount of
$139,901,142, Due 7/6/98, (Collateralized by U.S. Treasury
Bonds, Par Value of $138,004,746, Coupon rates of 5.75% to
8.00% Due from 8/15/98 to 2/15/23, Value of $140,764,843) 138,000,000
115,000,000 Tri-party Repurchase Agreement with Morgan Stanley, Dated
6/30/98, 5.68%, Principal & Interest in the amount of
$115,018,144, Due 7/01/98, (Collateralized by U.S. Treasury
Bond, Par Value of $24,591,716, Coupon rate of 8.75%, Due
8/15/20, Value of $24,109,526; U.S. Treasury Notes, Par
Value of $93,294,702, Coupon rates of 6.375% to 9.25%, Due
8/15/98 to 8/15/02, Value of $91,465,395) 115,000,000
90,000,000 Tri-party Repurchase Agreement with Swiss Bank, Dated 6/30/98,
5.75%, Principal & Interest in the amount of $ 90,014,375, Due 7/1/98,
(Collateralized by U.S. Treasury Notes, Par Value of $91,825,590,
Coupon rates of 5.50% to 5.86%, Due from to 5/15/98 to 2/29/00, Value of
$90,025,088) 90,000,000
300,000,000 Open Tri-party Repurchase Agreement with West Deutsche Bank,
Dated 6/30/98, Daily Variable Rate, Principal in the amount of 300,000,000,
Interest amount varies dependent on rate, Due 12/31/1999, (Collateralized by
U.S. Treasury Bonds, Par Value of $102,033,190, Coupon rates of 8.00% to 11.25%,
Due from 2/15/03 to 11/15/21, Value of $100,032,539; U.S. Treasury Notes,
Par Value of $204,133,103, Coupon rates of 5.125% to 6.625%, Due from 9/30/98
to 10/15/06, Value of $200,130,493) 300,000,000
--------------
Total Repurchase Agreements (Amortized Cost - $1,888,262,437) 1,888,262,437
--------------
Total Investments - (Amortized Cost $2,366,226,239) 99.21% $2,366,226,239
Other Assets Less Liabilities 0.79% 18,740,052
------- --------------
Net Assets 100.00% $2,384,966,291
======= ==============
</TABLE>
See Notes to Financial Statements on Page 13
10
<PAGE>
TREASURY MONEY PORTFOLIO
Statement of Operations For the six months ended June 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S><C>
Investment Income
Interest $ 70,251,740
---------------
Expenses
Advisory Fees 1,903,366
Administration and Services Fees 634,455
Professional Fees 7,056
Trustees Fees 501
Miscellaneous 2,134
---------------
Total Expenses 2,547,512
Less: Expenses Absorbed by Bankers Trust (9,691)
---------------
Net Expenses 2,537,821
---------------
Net Investment Income 67,713,919
---------------
Net Realized Gain from Investment Transactions 141,013
---------------
Net Increase in Net Assets from Operations $ 67,854,932
===============
</TABLE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
six months ended year ended
June 30, 1998* December 31, 1997
---------------- -----------------
<S><C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income $ 67,713,919 $ 108,213,323
Net Realized Gain from Investment Transactions 141,013 7,627
--------------- ---------------
Net Increase in Net Assets from Operations 67,854,932 108,220,950
--------------- ---------------
Capital Transactions
Proceeds from Capital Invested 8,542,786,138 12,977,569,030
Value of Capital Withdrawn (8,344,974,716) (12,946,202,889)
--------------- ---------------
Net Increase in Net Assets from Capital Transactions 197,811,422 31,366,141
--------------- ---------------
Total Increase in Net Assets 265,666,354 139,587,091
Net Assets
Beginning of Period 2,119,299,937 1,979,712,846
--------------- ---------------
End of Period $ 2,384,966,291 $ 2,119,299,937
=============== ===============
</TABLE>
- --------------
* Unaudited
See Notes to Financial Statements on Page 13
11
<PAGE>
TREASURY MONEY PORTFOLIO
Financial Highlights
Contained below are selected ratios to average net assets and other supplemental
data for each of the periods indicated for the Treasury Money Portfolio.
<TABLE>
<CAPTION>
For the For the years ended December 31,
six months ended -----------------------------------------------------------
June 30, 1998(1) 1997 1996 1995 1994 1993
---------------- ---------- ---------- ---------- -------- --------
<S><C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s
omitted) $2,384,966 $2,119,300 $1,979,713 $1,941,082 $882,775 $789,479
Ratios to Average Net Assets:
Net Investment Income 5.33%(2) 5.29% 5.14% 5.58% 3.93% 2.93%
Expenses 0.20%(2) 0.20% 0.20% 0.20% 0.20% 0.20%
Decrease Reflected in Above
Expense Ratio Due to Absorption
of Expenses by Bankers Trust 0.00%(2,3) 0.00%(3) 0.00%(3) 0.01% 0.01% 0.01%
</TABLE>
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(1) Unaudited
(2) Annualized
(3) Less than 0.01%.
See Notes to Financial Statements on Page 13
12
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TREASURY MONEY PORTFOLIO
Notes to Financial Statements (unaudited)
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 operation 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 valued at amortized cost, which is in accordance with Rule 2a-7
of the Investment Company Act of 1940 and represents the fair value of the
Portfolio's investments.
C. Security Transactions and Interest Income
Security transactions are accounted for on a trade basis. 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.
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.
D. Repurchase Agreements
The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Advisor, subject to the
seller's agreement to repurchase 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
agreements must have an aggregate market value greater than or equal to the
repurchase price plus all 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. However, in the event of default or
bankruptcy by the seller, realization and/or retention of the collateral may be
subject to legal proceedings.
E. Internal Revenue Code Requirements
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code. Therefore no federal income tax provision is required.
F. Other
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
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 .05% of the Portfolio's average daily net
assets. Amounts owed under the Administration and Services Agreement amounted to
$127,300 at June 30, 1998.
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 an annual rate of .15% of the Portfolio's
average daily net assets. At June 30, 1998, amounts owed under the Advisory
Agreement amounted to $333,337.
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Portfolio, to the extent necessary, to limit all expenses to
.20% of the average daily net assets of the Portfolio. For the six-month period
ended June 30, 1998, expenses of the Portfolio have been reduced by $9,691.
Certain officers of the Portfolio's are also directors, officers and/or
employees of Edgewood Services, Inc., distributor of BT Institutional Funds.
None of the officers so affiliated received compensation for services as
officers of the Portfolio.
Effective August 11, 1998, ICC Distributors, Inc. will replace Edgewood as
distributor of the Trust.
The BT Treasury Money Portfolio is a participant with other affiliated entities
in a revolving credit facility ("the revolver") and a discretionary demand line
of credit facility ("collectively the credit facilities") in the amounts of
$50,000,000 and $100,000,000, respectively. A commitment fee of .07% per annum
on the average daily amount of the available commitment is payable on a
quarterly basis and apportioned equally among all participants. Amounts borrowed
under the credit facilities will bear interest at a rate per annum equal to the
Federal Funds Rate plus .45%. No amounts were drawn down or outstanding under
the credit facilities as of and for the period ended June 30, 1998.
Note 3--Net Assets
At June 30, 1998, net assets consisted of:
Paid in capital $2,384,966,291
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13
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BT INSTITUTIONAL FUNDS
INSTITUTIONAL TREASURY MONEY FUND
Investment Advisor and Administrator of the Portfolio
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
Distributor
ICC DISTRIBUTORS, INC.
P.O. Box 7558
Portland, ME 04112-9892
Custodian and Transfer Agent
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
Independent Accountants
PRICEWATERHOUSECOOPERS LLP
250 West Pratt Street
Baltimore, MD 21201
Counsel
WILLKIE FARR & GALLAGHER
787 7th Avenue
New York, NY 10019
-------------------
For information on how to invest, shareholder account information and current
price and yield information, please contact your relationship manager or the BT
Mutual Fund Service Center at (800) 368-4031. This report must be preceded or
accompanied by a current prospectus for the Fund.
-------------------
Cusip # 055924203
STA480100 (6/98)
