o BT INSTITUTIONAL FUNDS o
INSTITUTIONAL
TREASURY ASSETS FUND
ANNUAL REPORT
-------------
DECEMBER o 1998
<PAGE>
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Institutional Treasury Assets Fund
TABLE OF CONTENTS
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Letter to Shareholders ................................... 3
Institutional Treasury Assets Fund
Statement of Net Assets ............................... 5
Statement of Operations ............................... 7
Statements of Changes in Net Assets ................... 7
Financial Highlights .................................. 8
Notes to Financial Statements ......................... 9
Report of Independent Accountants ..................... 10
2
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Institutional Treasury Assets Fund
LETTER TO SHAREHOLDERS
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We are pleased to present you with this annual report for the
BT Institutional Treasury Assets 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 throughout 1998 by the global financial
crisis, which began in Southeast Asia and spread to countries around the world.
o During the first half of the year, the hangover effects of the Southeast
Asian financial crisis spread to Hong Kong and Japan. This both focused the
U.S. markets on that region and also supported a flight to quality and, in
turn, a U.S. Treasury rally.
o In the second half of 1998, Russia devalued its currency and defaulted on
its domestic debt, despite an International Monetary Fund (IMF) bailout
attempt; weak commodity prices dampened the economic outlook for Latin
America in general and Brazil in particular; and economic instability in
Asia was ongoing. All of this buoyed the U.S. Treasury rally.
Concerns over the impact of foreign turmoil on U.S. economic growth did not
surface until the second half of the year.
o Interest rates in the first six months remained relatively stable. The
combination of a strong economy--especially in the service sector--and low
inflation allowed the Federal Reserve Board to keep interest rates
unchanged at 5.5%.
o During the third quarter, investors began to focus more heavily on the
Asian contagion and on the political problems in the Clinton
administration. In addition, a major leveraged hedge fund went bankrupt,
requiring a bailout by a consortium of Wall Street firms. The announcement
of this Fed-orchestrated bailout package forced corporate credit spreads to
widen significantly and liquidity to decrease. This led, in turn, to a
further rally in U.S. Treasuries plus significant buying of high quality
domestic paper.
Citing both global and U.S. developments and their prospects on the U.S.
economy, the Federal Reserve Board effectively battled investors' growing risk
aversion and escalating illiquidity with three rapid cuts of interest rates in
the second half of the year. These easing moves of 0.25% each--on September 29,
October 15, and November 17--restored the financial markets to a more peaceful
state and allowed the short-term fixed income markets, in particular, to finish
out the year on a relatively calm note.
The Treasury market also benefited from volatility in the equity markets. This
volatility buoyed a rally in the U.S. fixed income market in general and strong
cash inflows into the Treasury market in particular. Investors moved assets from
equity funds, both domestic and foreign, seeking both the greater liquidity and
the perceived safety of the Treasury market. Also fueling positive fixed income
market sentiment toward the end of the year was a plunge in oil prices and other
commodities to their lowest level in decades.
DIVERSIFICATION OF PORTFOLIO INVESTMENTS
By Asset Type as of December 31, 1998
(percentages are based on net assets)
U.S. Treasury Bills 1%
U.S. Treasury Notes 15%
Floating Rate Notes 6%
U.S. Government and Agency Discounts 17%
Repurchase Agreements 61%
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 BT Institutional Treasury Assets Fund.
<TABLE>
<CAPTION>
Annualized 7 Day Annualized 7 Day
Period ended Dec. 31, 1998 Current Yield Effective Yield
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<S> <C> <C>
BT Institutional
Treasury Assets Fund* 4.74% 4.86%
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IBC Government Only-
Institutional Only Money
Funds Average 4.52% 4.62%
</TABLE>
We maintained a neutral, close-to-the benchmark weighted average maturity
position through most of the first half of the year and began to extend in the
third quarter. 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, forced the interest rate spread between short-term
U.S. Treasury securities and repurchase agreements to become extremely wide.
Thus, we decided to extend the portfolio through term repurchase agreements with
high quality dealers in order to maintain portfolio yield while adding very
little risk. This strategy proved to be effective in producing competitive Fund
returns.
MANAGER OUTLOOK
Economic and financial market performance have run on virtually parallel tracks
in 1998, and that pattern seems likely to persist into 1999. Looking ahead for
the near term, we believe the Treasury markets should remain fairly positive,
though largely range-bound, without the dramatic rally of the year 1998.
- -----------------
* 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.
3
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Institutional Treasury Assets Fund
LETTER TO SHAREHOLDERS
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o Strong momentum in the U.S. economy--in terms of consumer spending,
employment, housing, and business investment--should carry into early 1999,
before weakening later in the year.
o The global economic crisis continues to loom and we anticipate GDP growth
of around 2.5% in 1999--a positive backdrop for inflation to stay low and
for the safe haven status of U.S. Treasuries to continue.
o We believe Federal Reserve Board monetary policy is likely on hold, not
changing interest rates for the foreseeable future in the face of solid
economic growth, healthy financial markets, and the recent softening of the
dollar.
Given this scenario and the slightly positive yield curve, we intend to stay
slightly longer than our benchmark 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 when they arise.
We will, 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.
We appreciate your support of the BT Institutional Treasury Assets Fund and look
forward to continuing to serve your investment needs for many years ahead.
/s/ Darlene M. Rasel
------------------------------
Darlene M. Rasel
Portfolio Manager of the
Institutional Treasury Assets Fund
December 31, 1998
4
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Institutional Treasury Assets Fund
STATEMENT OF NET ASSETS December 31, 1998
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Principal
Amount Description Value
------ ----------- -----
FLOATING RATE - NOTE - 6.1%
Federal Home Loan Bank:
Daily Variable Rate,
$ 10,000,000 5.35%, 11/9/99 $ 9,994,136
10,000,000 5.04%, 11/10/99 9,994,915
Federal Home Loan Mortgage
Corporation:
Monthly Variable Rate,
5,000,000 5.456%, 5/4/99 4,998,753
5,000,000 5.51%, 5/19/99 4,998,612
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Total Floating Rate - Notes
(Amortized Cost $29,986,416) 29,986,416
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UNITED STATES TREASURY NOTES - 15.5%
25,000,000 6.375%,(0) 4/30/99 25,136,987
8,000,000 6.50%,(0)4/30/99 8,044,007
14,000,000 6.00%,(0)6/30/99 14,062,389
15,000,000 6.75%,(0)6/30/99 15,149,221
5,000,000 6.37%,(0)7/15/99 5,041,632
8,000,000 5.875%,(0)8/31/99 8,055,919
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Total U.S. Treasury Notes
(Amortized Cost $75,490,155) 75,490,155
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UNITED STATES TREASURY BILL - 0.6%
3,000,000 4.39%, 07/01/99
(Amortized Cost $2,933,784) 2,933,784
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UNITED STATES GOVERNMENT AND AGENCY
OBLIGATIONS - 17.1%
Federal National Mortgage
Association:
5,000,000 5.36%, 2/19/99 4,999,096
20,000,000 5.018%, 3/3/99 19,829,946
Federal Home Loan Mortgage
Corporation:
7,000,000 5.33%, 2/4/99 6,964,763
5,000,000 5.18%, 2/5/99 4,974,819
5,000,000 5.20%, 2/5/99 4,974,722
16,000,000 4.95%, 2/18/99 15,894,400
10,000,000 5.17%, 2/19/99 9,929,632
10,000,000 5.06%, 2/26/99 9,921,289
3,000,000 5.32%, 2/26/99 2,975,173
3,000,000 5.32%, 3/15/99 2,967,637
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Total United States Government and
Agency Obligations
(Amortized Cost $83,431,477) 83,431,477
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Principal
Amount Description Value
------ ----------- -----
REPURCHASE AGREEMENTS - 60.6%
$ 5,600,000 Tri-Party Repurchase Agreement
with Canadian Imperial Bank,
dated 12/31/98, 4.25%, principal and
interest in the amount of $5,602,644,
due 01/04/99 (Collateralized by
U.S. Treasury Notes, par value of
$5,041,000, coupon rate of
6.62%,(0) due 05/15/07,
value of $5,715,125) $ 5,600,000
18,000,000 Tri-Party Repurchase Agreement with
Canadian Imperial Bank,
dated 12/31/98, 4.70%, principal and
interest in the amount of $18,009,400,
due 01/04/99 (Collateralized by
U.S. Treasury Notes, par value of
$15,665,000, coupon rates of
4.625% to 7.50%, due from
12/31/00 to 02/15/05,
value of $18,360,995) 18,000,000
10,000,000 Tri-Party Repurchase Agreement
with Chase Manhattan Bank, dated
12/31/98, 3.75% principal and interest in the
amount of $10,004,167, due 01/04/99
(Collateralized by U.S. Treasury
Notes, par value of $9,376,000,
coupon rates of 4.25% to 6.50%,
due from 11/15/00 to 08/15/05,
value of $10,203,948) 10,000,000
23,000,000 Tri-Party Repurchase Agreement with
Deutsche Bank, dated
12/31/98, 4.90%, principal and
interest in the amount of $23,012,522,
due 01/04/99 (Collateralized by
Federal National Mortgage
Association Discount Note, par
value of $24,037,000, coupon
rate of 4.96%, due 06/30/99,
value of $23,460,617) 23,000,000
20,000,000 Tri-Party Repurchase Agreement with
Credit Suisse First Boston,
dated 10/20/98, 4.90%, principal
and interest in the amount of
$20,247,722, due 01/19/99
(Collateralized by U.S. Treasury Bills,
par value of $17,578,000, coupon
rates of 4.482% to 4.518%, due from
3/11/99 to 06/03/99, Value of
$8,888,612; U.S. Treasury Bond, par
value of $9,510,000, due 08/15/26,
value of $11,631,895) 20,000,000
See Notes to Financial Statements.
5
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Institutional Treasury Assets Fund
STATEMENT OF NET ASSETS December 31, 1998
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Principal
Amount Description Value
------ ----------- -----
$ 5,000,000 Open Tri-Party Repurchase
Agreement with Credit Suisse
First Boston, dated 12/31/98,
4.8%, daily variable rate,
principal amount of $50,000,000,
interest amount varies dependent
on rate, due 12/31/99 (Collateralized
by U.S. Treasury Strips, par value of
$31,678,660 coupon rates of
5.87% to 7.50%, due from
02/15/04 to 08/15/27, value of
$7,852,662; U.S. Treasury Notes,
par value of $42,219,000,
due from 02/15/99 to 05/31/99,
value of $43,709,701) $ 5,000,000
83,492,096 Tri-Party Repurchase Agreement
with Goldman Sachs, dated
12/31/98, 4.50%, principal and
interest in the amount of $83,533,842,
due 01/04/99 (Collateralized by
U.S. Treasury Bond, par value of
$84,293,061, coupon rate of
10.375%, due 11/15/09,
value of $85,163,133) 83,492,096
15,000,000 Tri-Party Repurchase Agreement
with Greenwich Capital, Inc.,
dated 11/25/98, 4.90%,
principal and interest in the amount
of $15,112,292, due 01/19/99
(Collateralized by U.S. Treasury Strips,
par value of $27,435,000,
coupon rate of 5.205%, due 05/15/10,
value of $15,302,146) 15,000,000
18,000,000 Tri-Party Repurchase Agreement with
Merrill Lynch, dated 12/31/98,
4.75%, principal and interest in the
amount of $18,009,500, due 01/04/99
(Collateralized by REF Corp. Strips,
par value $47,983,000, coupon
rates of 4.966% to 5.819%,
due from 07/15/06 to 04/15/30,
value of $18,361,111) 18,000,000
Principal
Amount Description Value
------ ----------- -----
$ 5,000,000 Tri-Party Repurchase Agreement with
Swiss Bank, dated 12/31/98,
4.25%, principal and interest
in the amount of $5,002,361,
due 01/04/99 (Collateralized by
U.S. Treasury Bond, par value of
$4,987,935, coupon rate of
11.25%, due 02/15/15,
value of 5,115,088) $ 5,000,000
18,000,000 Tri-Party Repurchase Agreement with
Swiss Bank, dated 12/03/98,
4.95%, principal and interest
in the amount of $18,079,200,
due 01/04/99 (Collateralized by
U.S. Treasury Bond, par value of
$476,000 coupon rate of
8.75%, due 05/15/17, value of
$662,574; U.S. Treasury Strips,
par value of $72,715,000, coupon
rate of 5.45%, due 11/15/24,
value of $17,698,322) 18,000,000
30,055,929 Repurchase Agreement
with West Deutsche Bank,
dated 12/31/98, 4.88% principal
and interest in the amount
of $30,072,226%(0)(0)(0), due 01/04/99
(Collateralized by U.S. Treasury,
par value of $27,670,204,
coupon rate of 7.875%,
due 08/15/01,
value of $30,055,929) 30,055,929
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TOTAL REPURCHASE AGREEMENTS
(Amortized Cost $296,148,025) 296,148,025
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Total Investments
(Amortized Cost $487,989,857) 99.9% $ 487,989,857
Other Assets Less Liabilities 0.1% $ 235,644
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Net Assets 100.0% $ 488,225,501
======== ================
Shares Outstanding ($0.001 par value
per share, unlimited number of shares
of beneficial interest authorized) 488,231,561
================
Net Asset Offering and Redemption
Price Per Share
(Net assets divided by shares outstanding) $1.00
====
See Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
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Institutional Treasury Assets Fund
STATEMENT OF OPERATIONS For the year ended December 31, 1998
- --------------------------------------------------------------------------------
<S> <C>
Investment Income
Interest Income ........................................ $ 23,248,852
------------
Expenses
Advisory Fees .......................................... 646,253
Administration and Services Fees ....................... 430,835
Professional Fees ...................................... 23,430
Printing and Shareholder Reports ....................... 21,092
Trustees Fees .......................................... 5,485
Miscellaneous .......................................... 45,667
------------
Total Expenses ......................................... 1,172,762
Less: Expenses Absorbed by Bankers Trust ............... (483,425)
------------
Net Expenses ........................................ 689,337
------------
Net Investment Income ..................................... 22,559,515
Realized Gain from Investment Transactions ................ 140
------------
Net Increase in Net Assets from Operations ................ $ 22,559,655
============
</TABLE>
<TABLE>
<CAPTION>
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STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------
For the For the period
year ended December 1, 1997(1) to
December 31, 1998 December 31, 1997
------------------ ----------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income ................................. $ 22,559,515 $ 435,798
Net Realized Gain from Investment Transactions ........ 140 284
--------------- ---------------
Net Increase in Net Assets from Operations ............... 22,559,655 436,082
--------------- ---------------
Distribution to Shareholders
Net Investment Income ................................. (22,566,000) (435,798)
--------------- ---------------
Capital Transactions in Shares of Beneficial Interest
(at net asset value of $1.00 per share)(2)
Proceeds from Sales of Shares ......................... 2,638,493,264 246,463,863
Cost of Shares Redeemed ............................... (2,244,647,511) (152,078,054)
--------------- ---------------
Net Increase in Net Assets from Capital Share Transactions 393,845,753 94,385,809
--------------- ---------------
Total Increase in Net Assets ............................. 393,839,408 94,386,093
Net Assets
Beginning of Period ...................................... 94,386,093 --
--------------- ---------------
End of Period ............................................ $ 488,225,501 $ 94,386,093
=============== ===============
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(1) The Fund's inception date.
(2) As of December 31, 1998, one shareholder held 18% of the Fund's outstanding shares.
</TABLE>
See Notes to Financial Statements.
7
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Institutional Treasury Assets Fund
FINANCIAL HIGHLIGHTS
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Contained below are selected data for a share of beneficial interest
outstanding, total investment return, ratios to average net assets and other
supplemental data for each of the periods indicated for the Institutional
Treasury Assets Fund.
<TABLE>
<CAPTION>
For the For the period
year ended Dec. 1, 1997(1) to
December 31, 1998 December 31, 1997
----------------- -------------------
<S> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ............ $ 1.00 $ 1.00
----------- ------------
Income from Investment Operations
Net Investment Income ........................ 0.05 0.0046
Net Realized Gain from Investment Transactions 0.00(2) 0.00(2)
----------- ------------
Total from Investment Operations ................ 0.05 0.0046
----------- ------------
Distributions to Shareholders
Net Investment Income ........................ (0.05) (0.0046)
----------- ------------
Net Asset Value, End of Period .................. $ 1.00 $ 1.00
=========== ============
Total Investment Return for Period .............. 5.33% 0.46%
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) ..... $ 488,226 $ 94,386
Ratios to Average Net Assets:
Net Investment Income ..................... 5.24% 5.43%(3)
Expenses .................................. 0.16% 0.16%(3)
Decrease Reflected in Above Expense
Ratio Due to Absorption of Expenses
by Bankers Trust ....................... 0.11% 0.81%(3)
</TABLE>
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(1) The Fund's inception date
(2) Less than $0.01 per share.
(3) Annualized.
See Notes to Financial Statements.
8
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Institutional Treasury Assets Fund
NOTES TO FINANCIAL STATEMENTS
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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 Assets Fund (the "Fund") is offered to "accredited
investors" as defined under the Securities Act of 1933. The Fund commenced
operations and began offering shares of beneficial interest on December 1, 1997.
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue
shares of beneficial interest in the Fund. The following summarizes the
significant accounting policies of the Fund:
B. Security Valuation
Investments are valued at amortized cost in accordance with Rule
2a-7 of the Investment Company Act of 1940, which has been determined by the
Trustees to represent fair value of the Fund'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 basis of identified cost.
D. Organization Expenses
Costs incurred by the Fund in connection with its organization and initial
registration are being amortized evenly over a five year period.
E. Distributions
It is the Fund's policy to declare dividends daily and pay them monthly to
shareholders from net investment income. Dividends payable to shareholders are
recorded by the Fund on the ex-dividend date. Distributions of net capital gains
earned by the Fund, if any, are made annually, to the extent they exceed capital
loss carryforwards.
F. Repurchase Agreements
The Fund may enter into repurchase agreements with financial institutions deemed
to be creditworthy by the Fund's Investment Adviser, subject to the seller's
agreement to repurchase such securities at a mutually agreed upon price.
Securities received as collateral subject to repurchase agreements are deposited
with the Fund's custodian, and, pursuant to the terms of the repurchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus accrued
interest, the Fund 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 Fund 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.
The Fund may enter into tri-party repurchase agreements with broker-dealers, and
domestic banks. A repurchase agreement is a short-term investment in which the
Fund buys a debt security that the broker agrees to repurchase at a set time and
price. The third party, which is the broker's custodial bank, holds the
collateral in a separate account until the repurchase agreement matures. The
agreement ensures that the collateral's market value, including any accrued
interest, is sufficient if the broker defaults.
G. Federal Income Taxes
It is the Fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to investment companies and distribute all of
its taxable income to shareholders. Therefore, no federal income tax provision
is required.
H. 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.
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 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 .10% of the Fund's average daily net assets. For
the year ended December 31, 1998, administrative and service fees amounted to
$430,835 of which $26,446 was payable at the end of the period.
The Fund has entered into an Advisory Agreement with Bankers Trust. Under this
Advisory Agreement, the Fund pays Bankers Trust an advisory fee computed daily
and paid monthly at an annual rate of .15% of average daily net assets. For the
year ended December 31, 1998, advisory fees amounted to $646,253, of which
$36,780 was payable at the end of the period.
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Fund, to the extent necessary, to limit all expenses to .16% of
the average daily net assets of the Fund.
ICC Distributors, Inc., a member of the Forum Group of Companies, provides
distribution services to the Fund. For the year ended December 31, 1998, there
were no reimbursable expenses incurred under this agreement.
Note 3--Net Assets
Composition of Net Assets
Paid-in-Capital ........................................... $ 488,231,652
Distribution in excess of Net Investment Income ........... (6,201)
Undistributed Net Realized Gain from
Investment Transactions ................................. 140
-------------
Net Assets, December 31, 1998 ............................. $ 488,225,501
=============
9
<PAGE>
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Institutional Treasury Assets Fund
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees of BT Institutional Funds and Shareholders of
Institutional Treasury Assets Fund:
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Institutional Treasury Assets Fund (one of the Funds comprising BT
Institutional Funds, hereafter referred to as the "Fund") at December 31, 1998,
and the results of its operations, the changes in its net assets and the
financial highlights for each of the fiscal periods presented, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 5, 1999
10
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<PAGE>
BT INSTITUTIONAL FUNDS
INSTITUTIONAL TREASURY ASSETS FUND
Investment Advisor and Administrator of the Fund
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 the current prospectus for the Fund.
----------------------------
STA 464200(12/98)
