BT INSTITUTIONAL FUNDS
N-30D, 1999-08-30
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                                 JUNE 30, 1999

                                     [LOGO]

                                BT Mutual Funds



Institutional
Cash Management Fund
 Semi-Annual Report




TRUST: BT INSTITUTIONAL FUNDS

INVESTMENT ADVISOR: BANKERS TRUST COMPANY


<PAGE>

- --------------------------------------------------------------------------------
Institutional Cash Management Fund

Table of Contents
- --------------------------------------------------------------------------------



Letter to Shareholders ....................................................    3
Institutional Cash Management 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
Cash Management Portfolio
   Statement of Net Assets ................................................    9
   Statement of Operations ................................................   15
   Statements of Changes in Net Assets ....................................   16
   Financial Highlights ...................................................   16
   Notes to Financial Statements ..........................................   17



                              -------------------
The Fund is not insured by the FDIC and is not a deposit, obligation of or
guaranteed by Bankers Trust Company. The Fund is subject to investment risks,
including possible loss of principal amount invested.
                              -------------------

                                       2

<PAGE>


- --------------------------------------------------------------------------------
Institutional Cash Management Fund

Letter to Shareholders
- --------------------------------------------------------------------------------

We are pleased to present you with this semi-annual report for the Institutional
Cash Management 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
In many ways, the semi-annual period ended June 30, 1999 was an after-shock from
the global financial crisis that had dominated the money markets throughout
1998.

o  As the financial markets began to settle down in the first quarter of 1999
   and foreign economies, such as Japan, stabilized and showed signs of
   recovery, market participants shifted their focus to the strength in the U.S.
   economy. Although the economic numbers continued to support the strong
   economy/low inflation scenario, such indicators as robust job growth, low
   unemployment, and healthy retail sales were perceived as negative for the
   markets.

o  The economy in the second quarter remained very strong. The Federal Reserve
   Board continued to monitor economic indicators but still did not act, though
   on May 18th it adopted a policy bias tilted toward higher interest rates.
   Market expectations of Fed tightening, consumer optimism and spending,
   above-trend economic growth, and reduced concerns over international turmoil
   combined to push yields on short-term money market securities significantly
   higher.

o  Over the semi-annual period, the market yield curve steepened.

The only real relief to the pressures put on the money markets came in March, as
developments in Kosovo, Treasury paydowns and softer data supported the short
end of the market.

o  Market participants exhibited steady demand for short-term U.S. securities as
   the crisis in Kosovo continued to escalate.

o  The budget surplus and expectations of strong April tax receipts also pushed
   short-end yields lower.

o  Strong performance from oil and other commodities kept market participants
   from buying long-term securities, as inflation fears began to heighten.

                              --------------------
                                   Ratings(2)
                                    S&P: AAAm
                                  Moody's: AAA
                              --------------------

As generally expected, at its June 30 meeting, the Federal Reserve Board voted
to raise the targeted federal funds rate by 0.25% to 5.00%, on concerns that a
strong economy would rekindle inflation.

o  This action reversed the trend of monetary policy easing through a series of
   cuts in the second half of 1998.

o  While there is still little evidence of inflation, this monetary policy
   tightening was intended to make sure the economy does not get derailed by a
   spiral of rising wages and prices.

o  The Federal Reserve Board changed its bias to neutral, which helped the U.S.
   fixed income markets stage a small rally on the last day of June.

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 Cash Management Fund.

- --------------------------------------------------------------------------------
Six months ended                          Annualized 7 Day      Annualized 7 Day
 June 30, 1999                             Current Yield        Effective Yield
- --------------------------------------------------------------------------------
Institutional
  Cash Management
  Fund(1)                                       4.79%                4.90%
- --------------------------------------------------------------------------------
IBC First Tier-Institutional
  Only Money Funds
  Average                                       4.62%                4.73%
- --------------------------------------------------------------------------------

For most of the semi-annual period, we maintained a slightly long to the
benchmark weighted average maturity position, taking advantage of the steeper
yield curve and neutral Federal Reserve Board. Since the money markets had
already priced in at least one interest rate hike by the time the Fed actually
raised rates at the end of June, we were able to take advantage of the higher
rates and extend the portfolio at that time.

                      -----------------------------------
                             Status At June 30, 1999
                        Seven day effective yield: 4.90%
                            Average maturity: 46 days
                            Net assets: $3.22 billion
                      -----------------------------------

We also began to implement our strategy for year-end 1999 by taking advantage of
the steep yield curve caused by issuers extending their maturities into next
year to avoid potential Y2K problems.

MANAGER OUTLOOK
Looking ahead for the near term, the U.S. economy looks very healthy indeed.
However, while inflation appears to remain dormant, we should recognize that
there have been numerous indicators released that are frequently considered
harbingers of future inflation. For example:

o  unemployment remains at a thirty-year low

o  economic growth has been inordinately robust in historical terms

o  oil prices are rebounding, and

o  troubled Pacific Rim and other emerging market economies appear to have
   recovered from recent turmoil.

(1) Past performance is not indicative of future results. Yields will vary.
    Yield quotes 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 per share, it is possible to lose money by investing in the Fund.
    "Current yield" refers to the income generated by an investment in the Fund
    over a 7-day period. This income is then "annualized." The "effective yield"
    is calculated similarly but, when annualized, the income earned by an
    investment in the Fund is assumed to be reinvested. The "effective yield"
    will be slightly higher than the "current yield" because of the compounding
    effect of this assumed reinvestment. 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.

(2) Ratings are subject to change and do not remove market risks.

                                       3

<PAGE>

- --------------------------------------------------------------------------------
Institutional Cash Management Fund

Letter to Shareholders
- --------------------------------------------------------------------------------

Diversification of Portfolio Investments

                       By Asset Type as of June 30, 1999
                      (percentages are based on net assets)


In the printed version of the document, a pie chart appears which depicts the
following plot points:

Floating Rate
Notes 16%

Commercial
Paper 43%

Eurodollar
Certificates
of Deposit 11%

Funding
Agreements 2%

Certificates of
Deposit 1%

Yankee
Certificates of
Deposit 11%

Eurodollar Time Deposits 16%

The Federal Reserve Board itself has suggested that its outlook on interest
rates has changed from a bias toward higher rates to neutral. Of course, given
the tight labor market and this other economic and price data, the policy makers
also said they must "be especially alert." Thus, we believe, as do many
analysts, that there may be further interest rate increases on the horizon.
Clearly, the degree of tightening and the timing of the Federal Reserve Board's
next moves, if any, will be key to U.S. money market performance during the
second half of 1999; however, supply and demand factors will likely be even more
significant.

For example, we believe issuance of short-term paper may be quite light in the
latter part of December and early January. Thus, we intend to continue to
implement a barbell strategy within the Cash Management Fund by purchasing fixed
and floating rate securities maturing in the first quarter of 2000 as
opportunities present themselves.

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 Institutional Cash
Management 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 Cash Management Portfolio
                                  June 30, 1999

                                       4

<PAGE>


- --------------------------------------------------------------------------------
Institutional Cash Management Fund

Statement of Assets and Liabilities June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>

Assets
<S>                                                                                                                 <C>
   Investment in Cash Management Portfolio, at Value .........................................................      $ 3,231,793,715
   Due from Bankers Trust ....................................................................................              112,080
   Prepaid Expenses ..........................................................................................               33,863
                                                                                                                    ---------------
Total Assets .................................................................................................        3,231,939,658
                                                                                                                    ---------------
Liabilities
   Dividends Payable .........................................................................................           11,472,908
   Accrued Expenses ..........................................................................................              197,307
                                                                                                                    ---------------
Total Liabilities ............................................................................................           11,670,215
                                                                                                                    ---------------
Net Assets ...................................................................................................      $ 3,220,269,443
                                                                                                                    ===============
Shares Outstanding ($0.001 par value per share, unlimited number
   of shares of beneficial interest authorized) ..............................................................        3,220,565,186
                                                                                                                    ===============
Net Asset Value, Offering and Redemption Price Per Share (net assets divided by shares outstanding) ..........      $          1.00
                                                                                                                    ===============
Composition of Net Assets
   Paid-in Capital ...........................................................................................      $ 3,220,565,186
   Accumulated Net Realized Loss from Investment Transactions ................................................             (295,743)
                                                                                                                    ---------------
Net Assets, June 30, 1999 ....................................................................................      $ 3,220,269,443
                                                                                                                    ===============
</TABLE>




- --------------------------------------------------------------------------------


Statement of Operations       For the six months ended June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

Investment Income
   Income allocated from Cash Management Portfolio, net ......     $ 64,943,663
                                                                   ------------
Expenses
   Administration and Services Fees ..........................          675,414
   Registration Fees .........................................          199,349
   Printing and Shareholder Report Expenses ..................            7,758
   Professional Fees .........................................            6,666
   Trustees Fees .............................................            4,462
   Miscellaneous Expenses ....................................           16,084
                                                                   ------------
   Total Expenses ............................................          909,733
   Less: Fees Waived by Bankers Trust ........................         (234,319)
                                                                   ------------
      Net Expenses ...........................................          675,414
                                                                   ------------
Net Investment Income ........................................       64,268,249
Net Realized Gain from Investment Transactions ...............          143,721
                                                                   ------------
Net Increase in Net Assets from Operations ...................     $ 64,411,970
                                                                   ============


                       See Notes to Financial Statements.

                                       5

<PAGE>


- --------------------------------------------------------------------------------
Institutional Cash Management Fund

Statements of Changes in Net Assets
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                                                               For the                  For the
                                                                                           six months ended            year ended
                                                                                           June 30, 1999(1)        December 31, 1998
                                                                                           -----------------       -----------------
<S>                                                                                        <C>                     <C>
Increase (Decrease) in Net Assets from:
Operations
   Net Investment Income ...........................................................       $     64,268,249        $    121,983,949
   Net Realized Gain from Investment Transactions ..................................                143,721                 140,279
                                                                                           ----------------        ----------------
Net Increase in Net Assets from Operations .........................................             64,411,970             122,124,228
                                                                                           ----------------        ----------------
Distributions to Shareholders
   Net Investment Income ...........................................................            (64,268,249)           (121,983,949)
                                                                                           ----------------        ----------------
Capital Transactions in Shares of Beneficial Interest
  (at Net Asset Value of $1.00 per share)
   Proceeds from Sales of Shares ...................................................         22,690,600,701          38,329,659,039
   Dividend Reinvestments ..........................................................             45,652,980             109,800,828
   Cost of Shares Redeemed .........................................................        (21,863,269,484)        (38,014,384,008)
                                                                                           ----------------        ----------------
Net Increase from Capital Transactions in Shares of Beneficial Interest ............            872,984,197             425,075,859
                                                                                           ----------------        ----------------
Total Increase in Net Assets .......................................................            873,127,918             425,216,138
Net Assets
Beginning of Period ................................................................          2,347,141,525           1,921,925,387
                                                                                           ----------------        ----------------
End of Period ......................................................................       $  3,220,269,443        $  2,347,141,525
                                                                                           ================        ================
</TABLE>

- -----------
(1) Unaudited.



                       See Notes to Financial Statements.

                                       6

<PAGE>


- --------------------------------------------------------------------------------
Institutional Cash Management Fund

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
years indicated for the Institutional Cash Management Fund.

<TABLE>
<CAPTION>
                                                     For the
                                                   six months                    For the years ended December 31,
                                                 ended June 30,  ---------------------------------------------------------------
                                                    1999(1)         1998         1997         1996           1995         1994
                                                 --------------     ----         ----         ----           ----         ----
<S>                                              <C>             <C>          <C>          <C>            <C>           <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         0.05           0.06        0.04
   Net Realized Gain (Loss) from
      Investment Transactions                          0.00(2)         0.00(2)      0.00(2)      0.00(2)        0.00(2)    (0.01)
                                                 ----------      ----------   ----------   ----------     ----------    --------
Total from Investment Operations                       0.02            0.05         0.05         0.05           0.06        0.03
                                                 ----------      ----------   ----------   ----------     ----------    --------
Contributions of Capital                              --              --           --           --             --           0.01
                                                 ----------      ----------   ----------   ----------     ----------    --------
Distributions to Shareholders
   Net Investment Income                              (0.02)          (0.05)       (0.05)       (0.05)         (0.06)      (0.04)
                                                 ----------      ----------   ----------   ----------     ----------    --------
Total Distributions                                   (0.02)          (0.05)       (0.05)       (0.05)         (0.06)      (0.04)
                                                 ----------      ----------   ----------   ----------     ----------    --------
Net Asset Value, End of Period                   $     1.00      $     1.00   $     1.00   $     1.00     $     1.00    $   1.00
                                                 ==========      ==========   ==========   ==========     ==========    ========
Total Investment Return                                2.38%           5.47%        5.52%        5.36%(3)       5.89%       4.18%(3)
Supplemental Data and Ratios:
   Net Assets, End of Period
      (000s omitted)                             $3,220,269      $2,347,142   $1,921,925   $1,438,546     $1,010,874    $664,149
   Ratios to Average Net Assets:
      Net Investment Income                            4.76%(4)        5.34%        5.40%        5.24%          5.72%       3.98%
      Expenses, Including Expenses
        of the Cash Management Portfolio               0.23%(4)        0.23%        0.23%        0.23%          0.23%       0.23%
      Decrease Reflected in Above Expense
        Ratios Due to Expenses Reimbursed
        and/or Fees Waived by Bankers Trust            0.04%(4)        0.03%        0.03%        0.04%          0.04%       0.03%
</TABLE>

- ------------
(1) Unaudited.

(2) Less than $0.01 per share.

(3) Increased by approximately 0.10% and 0.91% due to contributions of capital
    for the years ended December 31, 1996 and 1994, respectively.

(4) Annualized.


                       See Notes to Financial Statements.

                                       7

<PAGE>


- --------------------------------------------------------------------------------
Institutional Cash Management 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 Cash Management Fund (the "Fund") is one of the institutional
funds offered to investors by the Trust. The Fund began operations and offering
shares of beneficial interest on July 25, 1990. 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 value of the Fund's investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio. At June 30, 1999, the
Fund's investment was approximately 45% of the Portfolio.

The financial statements of the Portfolio, including a list of assets held, are
contained elsewhere in this report and should be read in conjunction with the
Fund's financial statements.

B.  Security Valuation

Valuation of securities by the Portfolio is discussed in Note 1B of the
Portfolio's Notes to Financial Statements which are included elsewhere in this
report.

C.  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.

D.  Distributions

It is the Fund's policy to declare dividends daily and pay them monthly to
shareholders from net investment income. Dividends and distributions 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
are made annually to the extent they exceed capital loss carryforwards.

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 distribute 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 that Fund, while
expenses that are attributable to all of the Trust's funds are allocated among
them. Investment transactions are accounted for on a trade date basis. Realized
gains and losses are determined on a trade date basis.

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.

Notes 2--Fees and Transactions with Affiliates

The Fund has entered into an Administration and Services Agreement with Bankers
Trust Company ("Bankers Trust"). Under this 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.

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
 .23% of the average daily net assets of the Fund, including expenses of the
Portfolio.

ICC Distributors, Inc., a member of the Forum Group of Companies, provides
distribution services to the Fund.

The Portfolio is a participant with other affiliated entities in a revolving
credit facility in the amount of $100,000,000, which expires April 29, 2000. A
commitment fee of .10% 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 facility will bear interest at a
rate per annum equal to the Federal Funds Rate plus .50%. No amounts were drawn
down or outstanding under the credit facility as of and for the six months ended
June 30, 1999.

In 1994, 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 security to Bankers Trust New York Corporation, the
parent of the Advisor, at the same price, also pursuant to a put agreement. As a
result of these transactions the Fund's Financial Highlights for the period
January 25, 1994 (commencement of operations) to December 31, 1994 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. In 1996, Bankers Trust
contributed capital in the amount of $93,110 to reimburse the Fund for capital
losses incurred in prior years.

Bankers Trust Company is a wholly owned subsidiary of Bankers Trust Corporation.
In November 1998 Bankers Trust Corporation ("BT Corp.") and Deutsche Bank AG
("Deutsche Bank") entered into an Agreement and Plan of Merger which was
consummated on June 4, 1999. As a result of the transaction, BT Corp. became a
wholly-owned subsidiary of Deutsche Bank.

Note 3--Capital Loss Carryforwards

At June 30, 1999, capital loss carryforwards available as a reduction against
future net realized capital gains consisted of $437,065 which will expire in
2005, and $17,916 which will expire in 2002.

                                       8

<PAGE>


- --------------------------------------------------------------------------------
Cash Management Portfolio

Statement of Net Assets June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----

              EURODOLLAR CERTIFICATES OF
              DEPOSIT - 10.9%

              Abbey National PLC:
$50,000,000    4.92%, 7/15/99 ...........  $  50,000,000
 25,000,000    4.93%, 10/26/99 ..........     25,000,000
 22,000,000    5.44%, 3/13/00 ...........     22,000,000

              ABN Amro,
 25,000,000    4.95%, 10/12/99 ..........     25,000,224

              Bank of Austria,
 12,000,000    4.88%, 7/22/99 ...........     12,000,042

              Bank of Scotland:
 20,000,000    4.93%, 8/03/99 ...........     19,999,086
 30,000,000    4.95%, 8/25/99  ..........     30,000,000

              Barclays Bank PLC,
 35,000,000    4.875%, 8/16/99 ..........     35,000,221

              Cariplo,
 50,000,000    4.89%, 7/12/99 ...........     50,000,000

              Commerzbank,
 10,000,000    5.21%, 2/18/00 ...........      9,984,609

              Credit Agricole,
 20,000,000    4.95%, 10/12/99 ..........     20,000,558

              Dresdner Bank,
 25,000,000    4.96%, 9/30/99 ...........     25,000,940

              Internationale Nederlanden
               U.S. Funding Corp.:
 30,000,000    5.219%, 7/30/99 ..........     30,000,000
 20,000,000    4.94%, 8/16/99 ...........     19,999,649
 25,000,000    4.965%, 8/23/99 ..........     25,000,359
 35,000,000    4.975%, 9/17/99 ..........     35,000,689
 35,000,000    4.975%, 9/22/99 ..........     34,999,444
 20,000,000    4.975%, 11/10/99 .........     20,001,073
 20,000,000    5.155%, 2/22/00 ..........     19,955,245

              Morgan Guaranty,
 65,000,000    4.95%, 11/10/99 ..........     64,997,517

              National Australia Bank,
 20,000,000    4.96%, 11/12/99 ..........     20,000,000

              Norddeutsche Landesbank,
 25,000,000    5.01%, 9/08/99 ...........     25,000,473

              Paribas SA,
 35,000,000    4.90%, 8/11/99 ...........     34,995,324


PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----

              Rabobank Nederland, N.V.,
$20,000,000    4.87%, 7/26/99 ...........   $ 20,000,135

              Westdeutsche Landesbank:
 45,000,000    4.895%, 7/08/99 ..........     45,000,000
  8,000,000    4.88%, 7/26/99 ...........      8,000,048
 37,000,000    4.885%, 8/16/99 ..........     37,000,000
 12,000,000    4.96%, 8/25/99 ...........     12,000,000
                                            ------------
Total Eurodollar Certificates of Deposit
  (Amortized Cost $775,935,636) .........    775,935,636
                                            ------------

              YANKEE CERTIFICATES
              OF DEPOSIT - 10.5%
              Bank of Austria,
 15,000,000    5.68%, 8/03/99 ...........     15,007,915

              Banque Nationale de Paris:
  6,000,000    4.87%, 7/02/99 ...........      5,999,997
 75,000,000    4.88%, 7/02/99 ...........     74,999,990

              Barclays Bank PLC,
 75,000,000    4.875%, 7/06/99 ..........     75,000,052

              Bayerische Hypotheka
               Vereinsbank:
 25,000,000    4.91%, 7/08/99 ...........     25,000,000
 12,000,000    5.15%, 4/20/00 ...........     11,999,313

              Bayerische Landesbank,
 91,900,000    4.88%, 7/26/99 ...........     91,895,584

              Commerzbank:
 25,000,000    5.15%, 9/17/99 ...........     25,008,053
  5,000,000    5.01%, 1/10/00 ...........      4,988,355
 20,000,000    4.99%, 2/02/00 ...........     19,976,825
 20,000,000    5.16%, 2/25/00 ...........     19,994,955
 25,000,000    5.20%, 3/15/00 ...........     24,998,170
 20,000,000    5.185%, 3/30/00 ..........     19,992,800

              Credit Agricole,
 20,000,000    5.285%, 3/01/00 ..........     20,010,589

              Credit Commercial de France,
 25,000,000    4.85%, 7/12/99 ...........     25,000,000

              Landesbank Hessen Thuringen,
  3,000,000    5.215%, 2/29/00 ..........      2,999,120

              Lloyds Bank PLC,
 38,000,000    4.94%, 7/12/99 ...........     38,000,000


                       See Notes to Financial Statements.

                                       9

<PAGE>


- --------------------------------------------------------------------------------
Cash Management Portfolio

Statement of Net Assets June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Norddeutsche Landesbank:
$  8,000,000    5.66%, 7/27/99 ..........  $    8,003,180
  10,000,000    5.35%, 5/24/00 ..........       9,994,821

               Paribas SA:
  22,000,000    4.91%, 7/08/99 ..........      22,000,000
  25,000,000    4.95%, 8/24/99 ..........      25,000,000

               Rabobank Nederland, N.V.:
  20,000,000    5.02%, 1/12/00 ..........      19,952,177
  14,000,000    5.14%, 3/20/00 ..........      13,975,107

               Royal Bank of Canada:
  13,000,000    5.035%, 2/08/00 .........      12,963,073
  15,000,000    5.235%, 3/09/00 .........      14,999,338
   5,000,000    5.70%, 7/03/00 ..........       4,997,586

               Toronto Dominion Bank:
  20,000,000    5.10%, 2/22/00 ..........      19,994,393
  25,000,000    5.14%, 4/26/00 ..........      24,988,128

               Union Bank of Switzerland,
  15,000,000    5.155%, 2/25/00 .........      14,996,216

               Westdeutsche Landesbank,
  60,000,000    4.87%, 7/06/99 ..........      60,000,000
                                           --------------
Total Yankee Certificates of Deposit
  (Amortized Cost $752,735,737)..........     752,735,737
                                           --------------

               CERTIFICATES
               OF DEPOSIT - 0.9%
               First Chicago,
  18,000,000    4.87%, 7/08/99 ..........      17,999,836

               First Union Corp.,
  25,000,000    4.93%, 10/20/99 .........      25,000,000

               NationsBank,
   7,000,000    4.99%, 1/11/00 ..........       6,982,804

               Wachovia Bank,
  10,000,000    4.90%, 1/10/00 ..........       9,993,056
                                           --------------
Total Certificates of Deposit
  (Amortized Cost $59,975,696) ..........      59,975,696
                                           --------------

               EURODOLLAR TIME
               DEPOSITS - 15.7%
               ABN Amro:
  25,000,000    5.10%, 7/14/99 ..........      25,000,000
  50,000,000    4.98%, 11/12/99 .........      50,000,000


PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Banque Bruxelles Lambert:
$ 35,000,000    5.00%, 10/06/99 .........  $   35,000,000
  25,000,000    4.98%, 11/10/99 .........      25,000,000

               Bayerische Landesbank:
  25,000,000    4.96%, 10/12/99 .........      25,000,000
  40,000,000    4.95%, 10/29/99 .........      40,000,000

               Commerzbank,
  50,000,000    4.92%, 7/08/99 ..........      50,000,000

               Den Danske Bank,
  40,000,000    4.955%, 8/27/99 .........      40,000,000

               National Australia,
 200,000,000    5.75%, 7/01/99 ..........     200,000,000

               National City Cleveland,
 349,448,130    4.875%, 7/01/99 .........     349,448,130

               National Westminster,
  75,000,000    5.15%, 9/23/99 ..........      75,000,000

               Norddeutsche Landesbank,
  25,000,000    4.938%, 9/30/99 .........      25,000,000

               Toronto Dominion Bank,
  50,000,000    5.75%, 7/01/99 ..........      50,000,000

               Westdeutsche Landesbank:
 100,000,000    5.875%, 7/01/99 .........     100,000,000
  35,000,000    4.93%, 7/22/99 ..........      35,000,000
                                           --------------
Total Eurodollar Time Deposits
 (Amortized Cost $1,124,448,130) ........   1,124,448,130
                                           --------------

               FLOATING RATE
               NOTES - 16.2%
               American Express Centurion Bank:
                Monthly Variable Rate,
  30,000,000    4.994%, 2/14/00 .........      30,010,665
  20,000,000    4.948%, 3/15/00 .........      20,000,000
  25,000,000    4.903%, 4/03/00 .........      25,000,267

               Asset Securitization:
                Quarterly Variable Rate,
  40,000,000    5.06%, 3/06/00 ..........      40,000,000
  30,000,000    5.095%, 3/10/00 .........      29,997,948


                       See Notes to Financial Statements.

                                       10

<PAGE>


- --------------------------------------------------------------------------------
Cash Management Portfolio

Statement of Net Assets June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Bank of America:
               Monthly Variable Rate,
$ 15,000,000    4.985%, 8/18/99 .........   $  14,999,632
  10,000,000    5.05%, 4/18/00 ..........      10,006,319

               Bank of Austria:
                Monthly Variable Rate,
  50,000,000    4.888%, 3/15/00 .........      49,975,592
               Quarterly Variable Rate,
  25,000,000    4.855%, 7/27/99 .........      24,998,951

               Bank of Scotland:
                Monthly Variable Rate,
  25,000,000    4.898%, 3/15/00 .........      24,989,559
  25,000,000    4.811%, 5/10/00 .........      24,985,190

               Banque Nationale de Paris:
                Monthly Variable Rate,
  40,000,000    4.688%, 7/29/99 .........      39,998,182

               Bayerische Hypotheka Vereinsbank:
                Monthly Variable Rate,

 100,000,000    4.869%, 4/13/00 .........      99,945,109
  25,000,000    4.908%, 4/25/00 .........      24,989,925
  25,000,000    4.898%, 5/15/00 .........      24,984,830
  10,000,000    4.908%, 5/15/00 .........       9,994,394

               Bayerische Landesbank:
                Monthly Variable Rate,
 100,000,000    4.843%, 4/10/00 .........      99,945,831

               Chase Manhattan Bank:
                Quarterly Variable Rate,

  10,000,000    5.00%, 1/12/00 ..........      10,002,893
   6,000,000    5.243%, 2/28/00 .........       6,008,965
  15,000,000    5.20%, 4/20/00 ..........      15,028,864

               Corporate Receivables Corp.:
                Quarterly Variable Rate,
  30,000,000    5.003%, 2/16/00 .........      30,000,000

               Credit Agricole:
                Monthly Variable Rate,
  30,000,000    4.90%, 3/16/00 ..........      29,985,298

               First Union Corp.:
                Quarterly Variable Rate,
  10,000,000    5.02%, 10/20/99 .........      10,000,000



PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               General Electric Capital Corp.:
                Quarterly Variable Rate,

$ 20,000,000    5.058%, 9/08/99 .........   $  20,000,000
  50,000,000    4.95%, 4/12/00 ..........      50,000,000
  35,000,000    4.95%, 5/12/00 ..........      35,000,000

               General Motors Acceptance Corp.:
                Quarterly Variable Rate,
   7,500,000    5.018%, 2/24/00 .........       7,499,991
  20,000,000    5.018%, 2/25/00 .........      20,001,307

               J.P. Morgan Securities Inc.:
                Daily Variable Rate,
  20,000,000    5.016%, 3/02/00 .........      20,000,768
               Quarterly Variable Rate,
  14,000,000    4.999%, 2/23/00 .........      13,999,496
   7,820,000    4.95%, 4/06/00 ..........       7,819,994
  35,000,000    5.13%, 6/23/00 ..........      35,000,000

               Key Bank:
                Monthly Variable Rate,
  25,000,000    5.033%, 6/26/00 .........      24,985,420

               National Westminster:
                Quarterly Variable Rate,
  25,000,000    4.87%, 8/20/99 ..........      24,997,311

               NationsBank:
                Daily Variable Rate,
  25,000,000    5.05%, 2/04/00 ..........      24,993,577

               National Rural Utility Corp.:
                Quarterly Variable Rate,
  20,000,000    5.006%, 11/23/99 ........      20,000,000
  12,000,000    5.178%, 6/26/00 .........      11,998,820

               Norwest Corp.:
                Quarterly Variable Rate,
  30,000,000    5.016%, 10/28/99 ........      29,999,017

               PNC Bank:
                Monthly Variable Rate,
  25,000,000    5.098%, 1/31/00 .........      24,994,213

               Societe Generale:
               Monthly Variable Rate,

  35,000,000    4.913%, 5/15/00 .........      34,981,747
  25,000,000    4.913%, 5/15/00 .........      24,990,428

               Wells Fargo Bank:
                Quarterly Variable Rate,
  23,000,000    5.208%, 4/26/00 .........      22,985,454


                       See Notes to Financial Statements.

                                       11

<PAGE>


- --------------------------------------------------------------------------------
Cash Management Portfolio

Statement of Net Assets June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Westpac Capital Corp.:
                Quarterly Variable Rate,
$ 10,000,000    4.816%, 4/17/00 .........  $    9,995,243
                                           --------------

Total Floating Rate Notes
  (Amortized Cost $1,160,091,200) .......   1,160,091,200
                                           --------------

               COMMERCIAL PAPER - 43.3%
               Abbey National PLC,
  15,000,000    4.82%, 7/08/99 ..........      14,985,942

               AlliedSignal,
  15,000,000    5.30%, 2/01/00 ..........      14,525,208

               American General Finance,
  15,000,000    4.83%, 7/26/99 ..........      14,949,687

               American Home Products,
  15,000,000    4.85%, 7/19/99 ..........      14,963,625

               Asset Securitization:
  38,000,000    4.94%, 7/12/99 ..........      37,942,641
  20,000,000    5.05%, 8/16/99 ..........      19,870,944
  18,000,000    5.25%, 8/31/99 ..........      17,839,875

               Associates Corp.,
  20,000,000    4.86%, 7/27/99 ..........      19,929,800

               AT&T Corp.:
  35,000,000    4.82%, 7/16/99 ..........      34,929,708
  15,000,000    4.79%, 7/27/99 ..........      14,948,108

               Bank of America:
  15,000,000    4.82%, 8/16/99 ..........      14,907,617
  10,000,000    4.84%, 11/17/99 .........       9,813,122


               BBL North America:
  18,000,000    4.84%, 7/09/99 ..........      17,980,640
  28,000,000    4.83%, 7/12/99 ..........      27,958,677

               Bellsouth Telecommunications,
  45,000,000    4.85%, 7/12/99 ..........      44,933,312

               BP America,
 100,000,000    5.80%, 7/01/99 ..........     100,000,000

               British Telecom,
   6,500,000    4.91%, 7/21/99 ..........       6,482,269

               BTR Dunlop Finance,
  22,476,000    5.04%, 7/15/99 ..........      22,431,947




PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Caterpillar Finance,
 $27,000,000    5.30%, 7/14/99 ..........    $ 26,948,325

               Chase Manhattan Bank,
  22,000,000    4.83%, 9/08/99 ..........      21,796,335

               Coca Cola Co.,
 15,000,000     5.27%, 1/20/00 ..........      14,554,246

               Corporate Assets Funding
                Co., Inc.:
  60,000,000    4.82%, 7/15/99 ..........      59,887,533
  30,000,000    4.82%, 7/21/99 ..........      29,919,667
  70,000,000    5.05%, 8/16/99 ..........      69,537,444
  30,000,000    4.90%, 8/23/99 ..........      29,783,583

               Corporate Receivables Corp.:
  80,000,000    4.82%, 7/15/99 ..........      79,847,944
  27,000,000    5.05%, 8/12/99 ..........      26,840,925
  30,000,000    5.05%, 8/13/99 ..........      29,819,042
  52,000,000    4.88%, 8/16/99 ..........      51,658,578
  25,000,000    5.24%, 8/17/99 ..........      24,828,972

               Credit Suisse First Boston,
  30,000,000    4.82%, 8/06/99 ..........      29,855,400

               Cregem:
  15,000,000    4.80%, 7/13/99 ..........      14,976,000
  50,000,000    4.83%, 7/30/99 ..........      49,805,458
  32,000,000    4.84%, 9/10/99 ..........      31,694,542

               DaimlerChrysler:
  14,000,000    4.90%, 8/02/99 ..........      13,939,022

               Delaware Funding Corp.:
  36,000,000    5.05%, 7/30/99 ..........      35,853,550
  30,000,000    4.93%, 8/05/99 ..........      29,856,208
  12,576,000    4.93%, 8/17/99 ..........      12,495,056

               Diageo Capital PLC:
  30,000,000    4.85%, 7/06/99 ..........      29,979,792
  20,000,000    4.85%, 7/15/99 ..........      19,962,278
  15,000,000    4.81%, 8/16/99 ..........      14,907,808
  60,000,000    4.84%, 9/24/99 ..........      59,315,278

               DuPont de Nemours & Co.:
  25,000,000    4.84%, 7/08/99 ..........      24,976,472
  30,000,000    4.87%, 7/19/99 ..........      29,926,950

               Emerson Electric,
  25,000,000    5.27%, 1/31/00 ..........      24,216,819


                       See Notes to Financial Statements.

                                       12

<PAGE>

- --------------------------------------------------------------------------------
Cash Management Portfolio

Statement of Net Assets June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Ford Motor Credit:
 $50,000,000    5.65%, 7/01/99 ..........   $  50,000,000
  35,000,000    5.03%, 8/17/99 ..........      34,770,157

               General Electric Capital Corp.:
  25,000,000    4.82%, 7/15/99 ..........      24,953,139
  15,000,000    4.89%, 7/22/99 ..........      14,957,212
  25,000,000    4.83%, 7/28/99 ..........      24,909,437
  18,000,000    4.78%, 8/02/99 ..........      17,923,520
  25,000,000    4.83%, 9/30/99 ..........      24,694,771
  23,000,000    5.20%, 2/02/00 ..........      22,282,400
  22,000,000    4.95%, 2/07/00 ..........      21,331,475

               General Electric Capital Corp.:
                International Fund,
  40,000,000    5.31%, 2/15/00 ..........      38,648,900

               Generale Fund:
  13,163,000    4.88%, 7/14/99 ..........      13,139,804
  45,000,000    4.82%, 8/05/99 ..........      44,789,125
  15,000,000    5.23%, 9/13/99 ..........      14,838,742
  11,300,000    4.80%, 10/27/99 .........      11,122,213

               General Motors Acceptance Corp.:
  40,000,000    4.88%, 7/08/99 ..........      39,962,044
  23,000,000    4.97%, 7/16/99 ..........      22,952,372
  40,000,000    4.87%, 7/29/99 ..........      39,848,489
  12,000,000    4.87%, 8/04/99 ..........      11,944,807
  35,000,000    4.94%, 8/16/99 ..........      34,779,072
  15,000,000    5.22%, 1/31/00 ..........      14,534,550

               Gillette Co.,
  15,000,000    5.70%, 7/01/99 ..........      15,000,000

               Glaxo Wellcome PLC:
  25,300,000    4.80%, 7/29/99 ..........      25,205,547
  25,000,000    4.82%, 8/10/99 ..........      24,866,111

               Hydro-Quebec,
  27,000,000    4.80%, 8/12/99 ..........      26,848,800

               Internationale Nederlanden
                U.S. Funding Corp.,
  25,000,000    4.84%, 7/06/99 ..........      24,983,194

               J.P. Morgan, Inc.:
  45,000,000    4.82%, 7/06/99 ..........      44,969,875
  42,000,000    5.03%, 8/16/99 ..........      41,730,057
  22,000,000    4.90%, 9/15/99 ..........      21,772,422




PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Mellon Financial Co.,
 $30,000,000    5.03%, 8/16/99 ..........   $  29,807,183

               MetLife Funding, Inc.,
  52,772,000    4.86%, 7/06/99 ..........      52,736,344

               Motorola, Inc.,
  20,000,000    5.20%, 8/05/99 ..........      19,898,889

               National Rural Utilities CFC:
  22,000,000    4.84%, 7/16/99 ..........      21,955,633
  20,000,000    5.04%, 9/17/99 ..........      19,781,600

               Panasonic Finance, Inc.,
  40,000,000    5.80%, 7/01/99 ..........      40,000,000

               Pfizer, Inc.:
  15,349,000    5.80%, 7/01/99 ..........      15,349,000
  34,900,000    4.95%, 7/15/99 ..........      34,832,818
  40,500,000    4.98%, 7/19/99 ..........      40,399,155
  30,000,000    4.98%, 7/22/99 ..........      29,912,850

               Province of Quebec:
  16,220,000    4.77%, 7/13/99 ..........      16,194,210
  15,305,000    4.80%, 7/15/99 ..........      15,276,432

               Quincy Capital Corp.:
  14,035,000    4.87%, 7/06/99 ..........      14,025,508
  34,145,000    4.87%, 7/07/99 ..........      34,117,287
  35,000,000    4.86%, 7/13/99 ..........      34,943,300
  28,493,000    5.05%, 8/03/99 ..........      28,361,100
  25,000,000    5.05%, 8/13/99 ..........      24,849,201
  16,000,000    5.08%, 8/17/99 ..........      15,893,884

               Receivables Capital Corp.:
  27,000,000    4.91%, 7/06/99 ..........      26,981,588
  10,000,000    5.34%, 7/06/99 ..........       9,992,584
  15,000,000    4.82%, 7/09/99 ..........      14,983,933
  45,654,000    4.87%, 7/14/99 ..........      45,573,712

               Repsol International Finance B.U.:
  34,870,000    4.87%, 7/07/99 ..........      34,841,830
  25,000,000    4.87%, 7/15/99 ..........      24,952,654

               Rio Tinto America, Inc.,
  30,000,000    5.04%, 8/16/99 ..........      29,806,800

               Riverwoods Funding Corp.,
  25,000,000    4.84%, 7/09/99 ..........      24,973,111


                       See Notes to Financial Statements.

                                       13

<PAGE>

- --------------------------------------------------------------------------------
Cash Management Portfolio

Statement of Net Assets June 30, 1999 (unaudited)
- --------------------------------------------------------------------------------

PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               Shell Oil Co.,
 $17,000,000    4.97%, 7/15/99 ..........   $  16,967,144

               Union Bank of Switzerland,
 100,000,000    5.75%, 7/01/99 ..........     100,000,000

               USAA Capital Corp.,
   5,000,000    4.83%, 7/15/99 ..........       4,990,608

               Wachovia Bank:
   8,000,000    4.93%, 2/07/00 ..........       7,757,883
  25,000,000    5.18%, 2/15/00 ..........      24,176,236

               Windmill Funding Corp.:
  53,000,000    4.88%, 7/12/99 ..........      52,920,583
  27,000,000    4.93%, 7/13/99 ..........      26,955,630
   6,125,000    4.91%, 7/26/99 ..........       6,104,115
  25,000,000    4.93%, 8/02/99 ..........      24,890,444
  13,000,000    4.94%, 8/02/99 ..........      12,942,916
  13,450,000    4.94%, 8/06/99 ..........      13,383,557
  15,000,000    4.94%, 8/09/99 ..........      14,919,725
                                            -------------
Total Commercial Paper
 (Amortized Cost $3,090,784,031) ........   3,090,784,031
                                            -------------


PRINCIPAL
  AMOUNT              DESCRIPTION               VALUE
- ---------             -----------               -----
               FUNDING AGREEMENTS - 2.2%
               First Allmerica Financial
               Life Insurance Co.:
                Monthly Variable Rate,
 $55,000,000    4.90%, 4/17/00(1) .......   $  55,000,000

               Transamerica Life:
                Monthly Variable Rate,
  35,000,000    4.951%, 6/13/00(1) ......      35,000,000

               Travelers Insurance Co.:
                Monthly Variable Rate,
  40,000,000    4.984%, 2/23/00(1).......      40,000,000
  30,000,000    4.97%, 4/03/001 .........      30,000,000
                                           --------------
Total Funding Agreements
 (Amortized Cost $160,000,000) ..........     160,000,000
                                           --------------
Total Investments
 (Amortized Cost $7,123,970,430) .  99.7%   7,123,970,430
Other Assets in Excess of
 Liabilities .....................   0.3%      22,449,437
                                   -----   --------------
Net Assets - 100.0% .............. 100.0%  $7,146,419,867
                                   =====   ==============
- ---------------
(1) Illiquid security.


                       See Notes to Financial Statements.

                                       14

<PAGE>

Cash Management Portfolio

Statement of Operations For the six months ended June 30, 1999 (unaudited)

  Investment Income
   Interest ........................................     $ 166,249,559
                                                         -------------
Expenses
   Advisory Fees ...................................         5,013,875
   Administration and Services Fees ................         1,671,292
   Professional Fees ...............................            13,334
   Trustees Fees ...................................             1,935
   Miscellaneous Expenses ..........................               796
                                                         -------------
   Total Expenses ..................................         6,701,232
   Less: Fees Waived by Bankers Trust ..............          (684,734)
                                                         -------------
      Net Expenses .................................         6,016,498
                                                         -------------
Net Investment Income ..............................       160,233,061
Net Realized Gain from Investment Transactions .....           325,021
                                                         -------------
Net Increase in Net Assets from Operations .........     $ 160,558,082
                                                         =============




                       See Notes to Financial Statements.

                                       15
<PAGE>

Cash Management Portfolio

Statements of Changes in Net Assets

<TABLE>
<CAPTION>

                                                                     For the               For the
                                                                six months ended         year ended
                                                                 June 30, 1999(1)     December 31, 1998
                                                                ----------------      -----------------
<S>                                                             <C>                   <C>
Increase (Decrease) in Net Assets from:
Operations
   Net Investment Income .....................................   $    160,233,061      $    286,987,238
   Net Realized Gain from Investment Transactions ............            325,021               320,470
                                                                 ----------------      ----------------
Net Increase in Net Assets Resulting from Operations .........        160,558,082           287,307,708
                                                                 ----------------      ----------------
Capital Transactions
   Proceeds from Capital Invested ............................     20,588,149,400        85,829,057,272
   Value of Capital Withdrawn ................................    (19,066,540,604)      (84,691,836,966)
                                                                 ----------------      ----------------
Net Increase in Net Assets from Capital Share Transactions ...      1,521,608,796         1,137,220,306
                                                                 ----------------      ----------------
Total Increase in Net Assets .................................      1,682,166,878         1,424,528,014
Net Assets
Beginning of Period ..........................................      5,464,252,989         4,039,724,975
                                                                 ----------------      ----------------
End of Period ................................................   $  7,146,419,867      $  5,464,252,989
                                                                 ================      ================
</TABLE>


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
                                             six months                         For the years ended December 31,
                                            ended June 30,     ------------------------------------------------------------------
                                               1999(1)            1998          1997          1996         1995           1994
                                              ----------       ----------    ----------    ----------    ----------    ----------
<S>                                           <C>              <C>           <C>           <C>           <C>           <C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) ...  $7,146,420       $5,464,253    $4,039,725    $3,261,910    $2,615,932    $2,735,025
   Ratios to Average Net Assets:
    Net Investment Income ..................        4.80%            5.37%         5.43%         5.27%         5.77%         4.24%
    Expenses ...............................        0.18%(2)         0.18%         0.18%         0.18%         0.18%         0.18%
    Decrease Reflected in Above Expense
     Ratios Due to Expenses Reimbursed
     and/or Fees Waived by Bankers Trust ...        0.02%(2)         0.02%         0.02%         0.02%         0.02%         0.02%

</TABLE>

- ----------------
(1) Unaudited.
(2) Annualized.


                       See Notes to Financial Statements.
                                       16
<PAGE>


Cash Management Portfolio

Notes to Financial Statements (unaudited)

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 began 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 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 date basis. Interest income
is recorded on the accrual basis and includes amortization of premium and
accretion of 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 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. However, in the event of a default or bankruptcy by the seller,
realization and/or retention of the collateral may be subject to legal
proceedings.

E.  Federal Income Taxes
The Portfolio is considered a partnership under 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 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. For the six months
ended June 30, 1999, administrative and service fees amounted to $1,671,292, of
which $307,296 was payable at the end of the period.

The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this 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. For the six months ended June 30, 1999, advisory fees amounted to
$5,013,875, of which $921,887 was payable at the end of the period.

Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Portfolio, to the extent necessary, to limit all expenses to
 .18% of the average daily net assets of the Portfolio.

In 1994, 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 security to Banker Trust New York Corporation, the
parent of the Advisor, at the same price, also pursuant to a put agreement. As a
result of these transactions the Portfolio's Financial Highlights for the year
ended December 31, 1994, reflect the Portfolio's realized loss on the sale of
these securities and a capital contribution in the amount of $18,718,663. In
1996, Bankers Trust contributed capital in the amount of $1,113,488 to reimburse
the Cash Management Portfolio for capital losses incurred in prior years.

The Portfolio is a participant with other affiliated entities in a revolving
credit facility in the amount of $100,000,000, which expires April 29, 2000. A
commitment fee of .10% 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 facility will bear interest at a
rate per annum equal to the Federal Funds Rate plus .50%. No amounts were drawn
down or outstanding under the credit facility as of and for the six months ended
June 30, 1999.

                                       17
<PAGE>


Cash Management Portfolio
Notes to Financial Statements (unaudited)

Bankers Trust Company is a wholly owned subsidiary of Bankers Trust Corporation.
In November 1998 Bankers Trust Corporation ("BT Corp.") and Deutsche Bank AG
("Deutsche Bank") entered into an Agreement and Plan of Merger which was
consummated on June 4, 1999. As a result of the transaction, BT Corp. became a
wholly-owned subsidiary of Deutsche Bank.


Note 3--Net Assets

At June 30, 1999 net assets consisted of:

Paid-in Capital                      $7,146,419,867
                                     ==============

                                       18
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<PAGE>


Investment Advisor and Administrator of the Portfolio
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY  10006


Distributor
ICC Distributors, Inc.
Two Portland Square
Portland, ME  04101


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

[BANKERS TRUST LOGO]


For information on how to invest, shareholder account information and current
price and yield information, please contact your relationship manager or write
to us at:                      BT Service Center
                               P.O. Box 419210
                               Kansas City, MO 64141-6210
or call our toll-free number:  1-800-368-4031

This report must be preceded or accompanied by a current prospectus for the
Fund.

Institutional Cash Management Fund                     CUSIP #055924104
BT Institutional Funds                                 479SA (6/99)

Distributed by:
ICC Distributors, Inc.
Two Portland Square
Portland, ME 04101




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