BT INSTITUTIONAL FUNDS
INSTITUTIONAL CASH MANAGEMENT FUND
INSTITUTIONAL CASH RESERVES
BT PYRAMID MUTUAL FUNDS
BT INVESTMENT MONEY MARKET FUND
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 17, 1997
Please insert the following two sub-sections after the sub-section
entitled `Reverse Repurchase Agreements'' on page 2:
``When-Issued and Delayed-Delivery Securities. To secure prices deemed
advantageous at a particular time, each Portfolio may purchase
securities on a when-issued or delayed-delivery basis, in which case
delivery of the securities occurs beyond the normal settlement period;
payment for or delivery of the securities would be made at the same time
as the reciprocal delivery or payment by the other party to the
transaction. A Portfolio will enter into when-issued or delayed-delivery
transactions for the purpose of acquiring securities and not for the
purpose of leverage. When-issued securities purchased by the Portfolios
may include securities purchased on a ``when, as, and if issued'' basis
under which the issuance of the securities depends on the occurrence of
a subsequent event.
Securities purchased on a when-issued or delayed-delivery basis may
expose a Portfolio to risk because the securities may experience
fluctuations in value prior to their actual delivery. A Portfolio does
not accrue income with respect to a when-issued or delayed-delivery
security prior to its stated delivery date. Purchasing securities on a
when-issued or delayed-delivery basis can involve the additional risk
that the yield available in the market when the delivery takes place may
be higher than that obtained in the transaction itself. Upon purchasing
a security on a when-issued or delayed-delivery basis, a Portfolio will
segregate with the Portfolio's custodian liquid instruments in an amount
at least equal to the when-issued or delayed-delivery commitment.
Asset-Backed Securities. The Cash Management Portfolio and Liquid Assets
Portfolio may also invest in securities generally referred to as asset-
backed securities, which directly or indirectly represent a
participation interest in, or are secured by and payable from, a stream
of payments generated by particular assets such as motor vehicle or
credit card receivables. Asset-backed securities may provide periodic
payments that consist of interest and/or principal payments.
Consequently, the life of an asset-backed security varies with the
prepayment and loss experience of the underlying assets.''
May 8, 1997
EDGEWOOD SERVICES, INC.
Distributor
SUPPSAIMMKT (5/97)
