BT INVESTMENT FUNDS
Investment Cash Management Fund, Investment Treasury Money Fund, NY Tax Free
Money Fund and Tax Free Money Fund
BT ADVISOR FUNDS
U.S. Bond Index Fund, EAFE(R) Equity Index Fund and Small Cap Index Fund
BT PYRAMID MUTUAL FUNDS
Money Market Fund and Investment Equity 500 Index Fund
SUPPLEMENT DATED OCTOBER 18, 1999 (REPLACING SUPPLEMENT DATED JULY 15, 1999) TO
PROSPECTUS DATED APRIL 30, 1999
THE FOLLOWING REVISES EACH FUND'S ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE FUNDS" IN EACH FUNDS'
PROSPECTUS:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held on for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders of each Fund except Investment Cash
Management Fund, Money Market Fund, Investment Equity 500 Index Fund,
Institutional Cash Management Fund, Cash Reserves Fund and Institutional Equity
500 Index Fund also approved a new investment advisory agreement with Morgan
Grenfell, Inc. As of October 5, 1999, Morgan Grenfell, Inc. has been renamed
Deutsche Asset Management Inc. ("DAMI"). The new investment advisory agreement
with DAMI may be implemented within two years of the date of the Special Meeting
upon approval of a majority of the members of the Board of Trustees who are not
"interested persons" ("Independent Trustees"). Shareholders of each Fund except
Investment Cash Management Fund, Money Market Fund, Investment Equity 500 Index
Fund, Institutional Cash Management Fund, Cash Reserves Fund and Institutional
Equity 500 Index Fund also approved a new sub-investment advisory agreement
among each Fund's portfolio, DAMI and Bankers Trust
<PAGE>
under which Bankers Trust may perform certain of DAMI's responsibilities, at
DAMI's expense, upon approval of the Independent Trustees, within two years of
the date of the Special Meeting.
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreement with Bankers Trust will permit Deutsche Bank to simplify the
organizational structure of its U.S. mutual fund operations, enhance the
efficiency of their administration and promote consistency of internal controls,
compliance and regulatory oversight. The deferral in implementing the new
investment advisory and sub-investment advisory agreements is needed to permit
Deutsche Bank a sufficient amount of time to plan, prepare and institute the
necessary arrangements for DAMI to consolidate Deutsche Bank's U.S. mutual fund
operations.
Under the new investment advisory agreements and new sub-advisory agreement, the
compensation paid and the services provided would be the same as those under the
Advisory Agreement with Bankers Trust.
ABOUT DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to ten other investment
companies and as sub-adviser to five other investment companies.
THE FOLLOWING REVISES THE SECTION "MANAGEMENT OF THE FUND: PORTFOLIO MANAGER(S)"
IN THE PROSPECTUSES FOR U.S. BOND INDEX FUND, EAFE(R) EQUITY INDEX FUND, SMALL
CAP INDEX FUND AND INVESTMENT EQUITY 500 INDEX FUND:
The "Portfolio Manager(s)" section is hereby omitted.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPPINVEST (10/99)
CUSIPS:
055922108 05576L866 055847107
055922405 05576L874
055922207 05576L882
055922306 055847206
2
<PAGE>
BT INVESTMENT FUNDS
Investment Cash Management Fund, Intermediate Tax Free Fund, Tax Free Money
Fund, NY Tax Free Money Fund, Investment Treasury Money Fund, Investment
International Equity Fund, Capital Appreciation Fund, Lifecycle Long Range Fund,
Lifecycle Mid Range Fund, Lifecycle Short Range Fund, Pacific Basin Equity Fund,
Latin American Equity Fund, Small Cap Fund, Global Emerging Markets Equity Fund
and PreservationPlus Income Fund
BT PYRAMID MUTUAL FUNDS
Money Market Fund, Investment Equity 500 Index Fund, Institutional
Asset Management Fund, Equity Appreciation Fund and PreservationPlus Fund
BT ADVISOR FUNDS
EAFE(R) Equity Index Fund, Small Cap Index Fund and U.S. Bond Index Fund
BT INSTITUTIONAL FUNDS
Institutional Cash Management Fund, Cash Reserves Fund, Institutional Treasury
Money Fund, Institutional International Equity Fund, Institutional Equity 500
Index Fund and Liquid Assets Fund
SUPPLEMENT DATED OCTOBER 18, 1999 (REPLACING SUPPLEMENT DATED FEBRUARY 24, 1999)
TO EACH FUND'S CURRENT STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING REVISES THE FUND'S ADDRESS FOR ALL CORRESPONDENCE,INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING SUPPLEMENTS THE SECTION "PURCHASE OF SHARES" IN THE STATEMENT OF
ADDITIONAL INFORMATION FOR THE INSTITUTIONAL INTERNATIONAL EQUITY FUND:
Employees of Bankers Trust Company, their spouses and minor children may
purchase shares of Institutional Asset Management Fund and Class I shares of
Institutional International Equity Fund without regard to the minimum investment
requirements.
THE FOLLOWING REPLACES THE APPLICABLE SECTIONS RELATING TO THE TRUSTEES AND
OFFICERS IN EACH FUND'S STATEMENT OF ADDITIONAL INFORMATION:
<PAGE>
TRUSTEES OF THE TRUST AND PORTFOLIO(1)
CHARLES P. BIGGAR (birth date: October 13, 1930) -- Trustee of the Trust;
Trustee of each of the other investment companies in the BT Fund Complex(2);
Retired; former Vice President, International Business Machines ("IBM") and
President, National Services and the Field Engineering Divisions of IBM. His
address is 12 Hitching Post Lane, Chappaqua, New York 10514.
S. LELAND DILL (birth date: March 28, 1930) -- Trustee of the Trust; Trustee of
each of the other investment companies in the BT Fund Complex; Retired;
Director, Coutts (U.S.A.) International; Trustee, Phoenix-Zweig Trust(3) and
Phoenix-Euclid Market Neutral Fund(2); former Partner, KPMG Peat Marwick;
Director, Vintners International Company Inc.; Director, Coutts Trust Holdings
Ltd., Director, Coutts Group; General Partner, Pemco(2). His address is 5070
North Ocean Drive, Singer Island, Florida 33404.
MARTIN J. GRUBER (birth date: July 15, 1937) -- Trustee of the Trust; Trustee of
each of the other investment companies in the BT Fund Complex; Nomura Professor
of Finance, Leonard N. Stern School of Business, New York University (since
1964); Trustee, TIAA(2); Trustee, SG Cowen Mutual Funds(2); Trustee, Japan
Equity Fund(2); Trustee, Taiwan Equity Fund(2). His address is 229 South Irving
Street, Ridgewood, New Jersey 07450.
RICHARD HALE* (birth date: July 17, 1945) -- Trustee of the Trust; Trustee of
each of the other investment companies in the BT Fund Complex; Managing
Director, Deutsche Asset Management; Director, Flag Investors Funds(2); Managing
Director, Deutsche Banc Alex. Brown Incorporated; Director and President,
Investment Company Capital Corp. His address is 205 Woodbrook Lane, Baltimore,
Maryland 21212.
RICHARD J. HERRING (birth date: February 18, 1946) -- Trustee of the Trust;
Trustee of each of the other investment companies in the BT Fund Complex; Jacob
Safra Professor of International Banking, Professor of Finance and Vice Dean,
The Wharton School, University of Pennsylvania (since 1972). His address is 325
South Roberts Road, Bryn Mawr, Pennsylvania 19010.
- --------
(1) The Equity Appreciation Fund is a stand-alone fund and, therefore, does not
have a master portfolio.
(2) The "BT Fund Complex" consists of BT Investment Funds, BT Institutional
Funds, BT Pyramid Mutual Funds, BT Advisor Funds, Cash Management Portfolio,
Intermediate Tax Free Portfolio, Tax Free Money Portfolio, NY Tax Free Money
Portfolio, Treasury Money Portfolio, International Equity Portfolio, Equity 500
Index Portfolio, Capital Appreciation Portfolio, Asset Management Portfolio and
BT Investment Portfolios.
(3) An investment company registered under the Investment Company Act of 1940,
as amended (the "Act").
2
<PAGE>
BRUCE E. LANGTON (birth date: May 10, 1931) -- Trustee of the Trust; Trustee of
each of the other investment companies in the BT Fund Complex; Retired; Trustee,
Allmerica Financial Mutual Funds (1992-present); Member, Pension and Thrift
Plans and Investment Committee, Unilever U.S. Corporation (1989 to present)(4);
Director, TWA Pilots Directed Account Plan and 401(k) Plan (1988 to present)(2).
His address is 99 Jordan Lane, Stamford, Connecticut 06903.
PHILIP SAUNDERS, JR. (birth date: October 11, 1935) -- Trustee of the Trust;
Trustee of each of the other investment companies in the BT Fund Complex;
Principal, Philip Saunders Associates (Economic and Financial Analysis); former
Director, Financial Industry Consulting, Wolf & Company; President, John Hancock
Home Mortgage Corporation; Senior Vice President of Treasury and Financial
Services, John Hancock Mutual Life Insurance Company, Inc. His address is 445
Glen Road, Weston, Massachusetts 02193.
HARRY VAN BENSCHOTEN (birth date: February 18, 1928) -- Trustee of the Trust;
Trustee of each of the other investment companies in the BT Fund Complex;
Retired; Director, Canada Life Insurance Corporation of New York.
His address is 6581 Ridgewood Drive, Naples, Florida 34108.
* "Interested Person" within the meaning of Section 2(a)(19) of the Act. Mr.
Hale is a Managing Director of Deutsche Asset Management, the U.S. asset
management unit of Deutsche Bank and its affiliates.
The Board has an Audit Committee that meets with the Trust's independent
accountants to review the financial statements of the Trust, the adequacy of
internal controls and the accounting procedures and policies of the Trust. Each
member of the Board except Mr. Hale also is a member of the Audit Committee.
OFFICERS OF THE TRUST AND THE PORTFOLIO
DANIEL O. HIRSCH (birth date: March 27, 1954) -- Secretary of the Trust;
Director, Deutsche Banc Alex. Brown Incorporated and Investment Company Capital
Corp. since July 1998; Assistant General Counsel, Office of the General Counsel,
United States Securities and Exchange Commission from 1993 to 1998. His address
is One South Street, Baltimore, Maryland 21202.
JOHN A. KEFFER (birth date: July 14, 1942) -- President and Chief Executive
Officer of the Trust; President, Forum Financial Group L.L.C. and its
affiliates; President, ICC Distributors, Inc.(5) His address is ICC
Distributors, Inc., Two Portland Square, Portland, Maine 04101.
- ----------
(4) A publicly held company with securities registered pursuant to Section 12 of
the Securities Exchange Act of 1934, as amended.
(5) Underwriter/distributor for the Trust. Mr. Keffer owns 100% of the shares of
ICC Distributors, Inc.
3
<PAGE>
CHARLES A. RIZZO (birth date: August 5, 1958) Treasurer of the Trust; Vice
President and Department Head, Deutsche Asset Management since 1998; Senior
Manager, PricewaterhouseCoopers LLP from 1993 to 1998. His address is One South
Street, Baltimore, Maryland 21202.
Messrs. Hirsch, Keffer and Rizzo also hold similar positions for other
investment companies for which ICC Distributors, or an affiliate serves as the
principal underwriter.
No person who is an officer or director of Bankers Trust Company is an officer
or Trustee of the Trust. No director, officer or employee of ICC Distributors,
Inc. or any of its affiliates will receive any compensation from the Trust for
serving as an officer or Trustee of the Trust.
THE FOLLOWING SUPPLEMENTS THE APPLICABLE SECTIONS RELATING TO THE SUB-ADVISER IN
THE STATEMENT OF ADDITIONAL INFORMATION FOR LATIN AMERICAN EQUITY FUND AND
PACIFIC BASIN EQUITY FUND:
Effective May 1, 1999, BT Funds Management (International) Limited no longer
serves as sub-adviser to Latin American Equity Fund and Pacific Basin Equity
Fund. Bankers Trust Company ("Bankers Trust"), the Funds' investment adviser,
assumed day-to-day investment decision-making responsibility for Latin American
Equity Fund and Pacific Basin Equity Fund and their corresponding master
portfolios.
THE FOLLOWING SUPPLEMENTS THE APPLICABLE SECTIONS RELATING TO THE INVESTMENT
ADVISER IN EACH FUND'S STATEMENT OF ADDITIONAL INFORMATION:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust. Approval of the
Advisory Agreement was sought because Deutsche Bank became Bankers Trust's
parent company and, therefore, controls its operations as investment adviser.
At the Special Meeting, shareholders of each Fund except Investment Cash
Management Fund, Money Market Fund, Investment Equity 500 Index Fund,
Institutional Cash Management Fund, Cash Reserves Fund and Institutional Equity
500 Index Fund also approved a new investment advisory agreement with Morgan
Grenfell, Inc. As of October 5, 1999, Morgan Grenfell, Inc. has been renamed
Deutsche Asset Management Inc. ("DAMI"). The new investment advisory agreement
with DAMI may be implemented within two years of the date of the Special Meeting
upon approval of a majority of the members of the Board of Trustees who are not
"interested persons" ("Independent Trustees").
4
<PAGE>
Shareholders of each Fund except Investment Cash Management Fund, Money Market
Fund, Investment Equity 500 Index Fund, Institutional Cash Management Fund, Cash
Reserves Fund and Institutional Equity 500 Index Fund also approved a new
sub-investment advisory agreement among each Fund or its portfolio, DAMI and
Bankers Trust under which Bankers Trust may perform certain of DAMI's
responsibilities, at DAMI's expense, upon approval of the Independent Trustees.
Shareholders of Pacific Basin Equity Fund and Latin American Equity Fund
approved a new sub-investment advisory agreement among each Fund's portfolio,
DAMI and Morgan Grenfell Investment Services Limited. As of October 5, 1999,
Morgan Grenfell Investment Services Limited has been renamed Deutsche Asset
Management Investment Services Limited ("DAMISL"). Under this agreement, DAMISL
may perform certain of DAMI's responsibilities, at DAMI's expense, upon approval
of the Independent Trustees. Both sub-investment advisory agreements must be
implemented within two years of the date of the Special Meeting.
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreements with Bankers Trust and MGIS will permit Deutsche Bank to
simplify the organizational structure of its U.S. mutual fund operations,
enhance the efficiency of their administration and promote consistency of
internal controls, compliance and regulatory oversight. The deferral in
implementing the new investment advisory and sub-investment advisory agreements
is needed to permit Deutsche Bank a sufficient amount of time to plan, prepare
and institute the necessary arrangements for DAMI to consolidate Deutsche Bank's
U.S. mutual fund operations.
Under the new investment advisory agreements and new sub-investment advisory
agreements, the compensation paid and the services provided would be the same as
those under the Advisory Agreement with Bankers Trust.
About Bankers Trust. Bankers Trust is the principal banking subsidiary of
Bankers Trust Corporation. Bankers Trust Corporation is a wholly owned
subsidiary of Deutsche Bank. Deutsche Bank is a banking company with limited
liability organized under the laws of the Federal Republic of Germany. Deutsche
Bank is the parent company of a group consisting of banks, capital markets
companies, fund management companies, mortgage banks, a property finance
company, installment financing and leasing companies, insurance companies,
research and consultancy companies and other domestic and foreign companies.
5
<PAGE>
About DAMI and DAMISL. DAMI and DAMISL are subsidiaries of Deutsche Asset
Management Group Limited, a wholly owned subsidiary of Deutsche Morgan Grenfell
Group PLC, an investment holding company which is, in turn, a wholly owned
subsidiary of Deutsche Bank.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPPALL SAI (10/99)
CUSIPS:
055922108 055922207 055922306 055922405 055922660
055922736 055922769 055922785 055922801 055922819
055922827 055922835 055922843 055922868 055847206
055847107 055922751 055847404 055847834 055847842
055847826 055847818 05576L874 05576L882 055766L700
055924500 055924104 055924203 055924872 055924864
055924856 055924849
6
<PAGE>
BT PYRAMID MUTUAL FUNDS
Institutional Asset Management Fund
SUPPLEMENT DATED OCTOBER 18, 1999, (REPLACING SUPPLEMENT DATED July 15, 1999) TO
PROSPECTUS DATED JULY 31, 1999
THE FOLLOWING REVISEES EAC FUND'S ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE FUND" IN THE FUND'S
PROSPECTUS:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders of the Fund also approved a new investment
advisory agreement with Morgan Grenfell, Inc. As of October 5, 1999, Morgan
Grenfell, Inc. has been renamed Deutsche Asset Management Inc. ("DAMI"). The new
investment advisory agreement with DAMI may be implemented within two years of
the date of the Special Meeting upon approval of a majority of the members of
the Board of Trustees who are not "interested persons" ("Independent Trustees").
Shareholders of the Fund also approved a new sub-investment advisory agreement
among the Fund's portfolio, DAMI and Bankers Trust under which Bankers Trust may
perform certain of DAMI's responsibilities, at DAMI's expense, upon approval of
the Independent Trustees, within two years of the date of the Special Meeting.
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreement with Bankers Trust will permit Deutsche Bank to simplify the
organizational structure of its U.S. mutual fund operations, enhance the
efficiency of their administration and promote consistency of internal controls,
compliance and regulatory oversight. The deferral in implementing the new
investment advisory and sub-investment advisory agreements is needed to permit
Deutsche Bank a sufficient amount of time to plan, prepare and institute the
necessary arrangements for DAMI to consolidate Deutsche Bank's U.S. mutual fund
operations.
<PAGE>
Under the new investment advisory agreements and new sub-advisory agreement, the
compensation paid and the services provided would be the same as those under the
Advisory Agreements with Bankers Trust.
About DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to ten other investment
companies and as sub-adviser to five other investment companies.
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<PAGE>
BT PYRAMID MUTUAL FUNDS
Equity Appreciation Fund
SUPPLEMENT DATED OCTOBER 18, 1999 (REPLACING SUPPLEMENT DATED JUNE 21, 1999) TO
PROSPECTUS DATED JANUARY 31, 1999, AS REVISED APRIL 12, 1999
On September 8, 1999, the Board of Trustees voted to recommend the
reorganization of the Fund into the BT Capital Appreciation Fund. The Board has
determined that this proposal is in the best interests of shareholders. The Fund
and the BT Capital Appreciation Fund currently have the same investment
management teams and employ the same investment strategy.
The merger requires the approval of the Fund's shareholders. A Special Meeting
of Shareholders will be held for this purpose. A proxy statement describing the
proposed reorganization will be sent to Fund shareholders before the Special
Meeting of Shareholders. Management currently anticipates that the shareholder
meeting will take place in the first quarter of 2000.
If shareholders approve the merger, shares of the Fund will be converted to
shares of the BT Capital Appreciation Fund. The BT Capital Appreciation Fund has
a master-feeder structure, which differs from the stand-alone structure of the
Fund. A full description of the BT Capital Appreciation Fund's master-feeder
structure will be included in the proxy statement mailed to shareholders. It is
intended that the transfer of shares from the Fund to the BT Capital
Appreciation Fund will not be a taxable transaction for shareholders and that
the fees of the Equity Appreciation Fund will remain the same.
THE FOLLOWING REVISES THE FUND'S ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE TRUSTS" IN THE FUND'S
PROSPECTUS:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders also approved a new investment advisory
agreement with Morgan Grenfell, Inc. As of October 5, 1999, Morgan Grenfell,
Inc. has been renamed Deutsche Asset Management Inc. The new investment advisory
agreement with DAMI may be implemented within two years of the date of the
Special Meeting upon approval of a majority of the members of the Trust's Board
of Trustees who are not "interested persons" ("Independent Trustees").
Shareholders also approved a new sub-investment advisory agreement among the
Trust, DAMI and Bankers Trust under which Bankers Trust may perform certain of
DAMI's responsibilities, at DAMI's expense, upon approval of the Independent
Trustees, within two years of the date of the Special Meeting.
<PAGE>
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreement with Bankers Trust will permit Deutsche Bank to simplify the
organizational structure of its U.S. mutual fund operations, enhance the
efficiency of their administration and promote consistency of internal controls,
compliance and regulatory oversight. The deferral in implementing the new
investment advisory and sub-investment advisory agreements is needed to permit
Deutsche Bank a sufficient amount of time to plan, prepare and institute the
necessary arrangements for DAMI to consolidate Deutsche Bank's U.S. mutual fund
operations.
Under the new investment advisory agreements and new sub-investment advisory
agreement, the compensation paid and the services provided would be the same as
those under the Trust's Advisory Agreement with Bankers Trust.
About DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to ten other investment
companies and as sub-adviser to five other investment companies.
THE FOLLOWING REPLACES THE SECTION "MANAGEMENT OF THE FUND: PORTFOLIO MANAGER"
IN THE FUND'S PROSPECTUS:
Portfolio Managers. The following individuals serve as co-managers and are
responsible for the day-to-day management of the Fund's investments:
John P. Callaghan
o Joined the Investment Adviser and the Fund in June 1999.
o Portfolio Manager at Morgan Grenfell, Inc. from 1997 to present.
o Portfolio Manager at Odyssey Partners from March 1996 to 1997 and Weiss Peck
& Greer from 1993 to March 1996.
o AB in Economics from Harvard College and MBA from Harvard Business School.
Mary P. Dugan, CFA
o Joined the Investment Adviser in 1994 and the Fund in March 1999.
o Securities Analyst at Fred Alger Management from 1992 to 1994.
o BA from the University of Rochester and MBA from New York University.
Audrey M. T. Jones, CFA
o Joined the Investment Adviser and the Fund in June 1999.
o Portfolio Manager at Morgan Grenfell, Inc. from 1986 to present.
o BBA in Finance/Accounting from Pace University Lubin School of Business.
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<PAGE>
BT PYRAMID MUTUAL FUNDS
BT PreservationPlus Fund (Institutional Class)
SUPPLEMENT DATED OCTOBER 18, 1999 (REPLACING SUPPLEMENT DATED JUNE 15, 1999) TO
PROSPECTUSES DATED NOVEMBER 30, 1998
THE FOLLOWING REVISES THE FUND'S ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING SENTENCES ARE HEREBY OMITTED FROM THE "WHO MAY INVEST" SECTION
IN THE PROSPECTUS FOR THE INSTITUTIONAL CLASS (THE "CLASS"):
The Shares are available to employees benefit plans whose initial investment
equals or exceeds $25 million. Shares are also available to employee benefit
plans which invest in the Fund through an omnibus account or similar
arrangement, if that omnibus account or similar arrangement makes an initial
investment in the Fund of at least $25 million.
THE FOLLOWING REPLACES THE SECOND PARAGRAPH OF THE SECTION "THE FUND IN DETAIL"
IN EACH CLASS' PROSPECTUS:
The Portfolio's investment objective is a high level of current income while
seeking to maintain a stable value per Share. The Portfolio expects to invest at
least 65% of its net assets in fixed income securities ("Fixed Income
Securities") of varying maturities rated, at the time of purchase, in one of the
top three long-term rating categories by Standard & Poor's ("S&P"), Moody's
Investors Service, Inc. ("Moody's"), or Duff & Phelps Credit Rating Co., or
comparably rated by another nationally recognized statistical rating
organization ("NRSRO"), or, if not rated by a NRSRO, of comparable quality as
determined by Bankers Trust in its sole discretion.
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE TRUSTS" IN EACH CLASS'
PROSPECTUS:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders also approved a new investment advisory
agreement with Morgan Grenfell, Inc. As of October 5, 1999, Morgan Grenfell,
Inc. has been renamed Deutsche Asset Management Inc. The new investment advisory
agreement with DAMI may be implemented within two years of the date of the
Special Meeting upon approval of a majority of the members of the Trust's Board
of Trustees who are not "interested persons" ("Independent Trustees").
Shareholders also approved a new sub-investment advisory agreement among the
Fund's portfolio, DAMI and Bankers Trust under
<PAGE>
which Bankers Trust may perform certain of DAMI's responsibilities, at DAMI's
expense, upon approval of the Independent Trustees, within two years of the date
of the Special Meeting.
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreement with Bankers Trust will permit Deutsche Bank to simplify the
organizational structure of its U.S. mutual fund operations, enhance the
efficiency of their administration and promote consistency of internal controls,
compliance and regulatory oversight. The deferral in implementing the new
investment advisory and sub-investment advisory agreements is needed to permit
Deutsche Bank a sufficient amount of time to plan, prepare and institute the
necessary arrangements for DAMI to consolidate Deutsche Bank's U.S. mutual fund
operations.
Under the new investment advisory agreements and new sub-investment advisory
agreement, the compensation paid and the services provided would be the same as
those under the Trust's Advisory Agreement with Bankers Trust.
About DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to ten other investment
companies and as sub-adviser to five other investment companies.
* * *
On March 11, 1999, Bankers Trust announced that it had reached an agreement with
the United States Attorney's Office in the Southern District of New York to
resolve an investigation concerning inappropriate transfers of unclaimed funds
and related record-keeping problems that occurred between 1994 and early 1996.
Bankers Trust pleaded guilty to misstating entries in the bank's books and
records and agreed to pay a $63.5 million fine to state and federal authorities.
On July 26, 1999, the federal criminal proceedings were concluded with Bankers
Trust's formal sentencing. The events leading up to the guilty pleas did not
arise out of the investment advisory or mutual fund management activities of
Bankers Trust or its affiliates.
As a result of the plea, absent an order from the SEC, Bankers Trust would not
be able to continue to provide investment advisory services to the Fund. The SEC
has granted Bankers Trust a temporary order to permit it and its affiliates to
continue to provide investment advisory services to registered investment
companies. There is no assurance that the SEC will grant a permanent order.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPP491 (10/99)
CUSIP:
055847818
2
<PAGE>
BT PYRAMID MUTUAL FUNDS
BT PreservationPlus Fund (Investment Class and Institutional Service Class)
SUPPLEMENT DATED OCTOBER 18, 1999 (REPLACING SUPPLEMENT DATED JUNE 15, 1999) TO
PROSPECTUS DATED NOVEMBER 30, 1998
Effective October 18, 1999, the Investment Class and Institutional Service Class
(each, a "Class") of BT PreservationPlus Fund (the "Fund") will cease
establishing new accounts.
THE FOLLOWING REVISES THE FUND'S ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING REPLACES THE SECOND PARAGRAPH OF THE SECTION "THE FUND IN DETAIL"
IN THE CLASS' PROSPECTUS:
The Portfolio's investment objective is a high level of current income while
seeking to maintain a stable value per Share. The Portfolio expects to invest at
least 65% of its net assets in fixed income securities ("Fixed Income
Securities") of varying maturities rated, at the time of purchase, in one of the
top three long-term rating categories by Standard & Poor's ("S&P"), Moody's
Investors Service, Inc. ("Moody's"), or Duff & Phelps Credit Rating Co., or
comparably rated by another nationally recognized statistical rating
organization ("NRSRO"), or, if not rated by a NRSRO, of comparable quality as
determined by Bankers Trust in its sole discretion.
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE TRUSTS" IN THE CLASS'
PROSPECTUS:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders also approved a new investment advisory
agreement with Morgan Grenfell, Inc. As of October 5, 1999, Morgan Grenfell,
Inc. has been renamed Deutsche Asset Management Inc. The new investment advisory
agreement with DAMI may be implemented within two years of the date of the
Special Meeting upon approval of a majority of the members of the Trust's Board
of Trustees who are not "interested persons" ("Independent
<PAGE>
Trustees"). Shareholders also approved a new sub-investment advisory agreement
among the Fund's portfolio, DAMI and Bankers Trust under which Bankers Trust may
perform certain of DAMI's responsibilities, at DAMI's expense, upon approval of
the Independent Trustees, within two years of the date of the Special Meeting.
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreement with Bankers Trust will permit Deutsche Bank to simplify the
organizational structure of its U.S. mutual fund operations, enhance the
efficiency of their administration and promote consistency of internal controls,
compliance and regulatory oversight. The deferral in implementing the new
investment advisory and sub-investment advisory agreements is needed to permit
Deutsche Bank a sufficient amount of time to plan, prepare and institute the
necessary arrangements for DAMI to consolidate Deutsche Bank's U.S. mutual fund
operations.
Under the new investment advisory agreements and new sub-investment advisory
agreement, the compensation paid and the services provided would be the same as
those under the Trust's Advisory Agreement with Bankers Trust.
About DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to ten other investment
companies and as sub-adviser to five other investment companies.
* * *
On March 11, 1999, Bankers Trust announced that it had reached an agreement with
the United States Attorney's Office in the Southern District of New York to
resolve an investigation concerning inappropriate transfers of unclaimed funds
and related record-keeping problems that occurred between 1994 and early 1996.
Bankers Trust pleaded guilty to misstating entries in the bank's books and
records and agreed to pay a $63.5 million fine to state and federal authorities.
On July 26, 1999, the federal criminal proceedings were concluded with Bankers
Trust's formal sentencing. The events leading up to the guilty pleas did not
arise out of the investment advisory or mutual fund management activities of
Bankers Trust or its affiliates.
As a result of the plea, absent an order from the SEC, Bankers Trust would not
be able to continue to provide investment advisory services to the Fund. The SEC
has granted Bankers Trust a temporary order to permit it and its affiliates to
continue to provide investment advisory services to registered investment
companies. There is no assurance that the SEC will grant a permanent order.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPP 495/485 (10/99)
CUSIP:
055847842
2
<PAGE>
BT PYRAMID MUTUAL FUNDS
BT PreservationPlus Fund (Service Class)
SUPPLEMENT DATED OCTOBER 18, 1999 (REPLACING SUPPLEMENT DATED JUNE 15, 1999) TO
PROSPECTUS DATED NOVEMBER 30, 1998
THE FOLLOWING REVISES THE FUND'S ADDRESS FOR ALL CORRESPONDENCE, INCLUDING
APPLICATIONS:
BT Service Center
P.O. Box 219210
Kansas City, MO 64121-9210
THE FOLLOWING REPLACES THE "ANNUAL FUND OPERATING EXPENSES" TABLE IN THE
"EXPENSE SUMMARY" SECTION OF THE PROSPECTUS FOR THE SERVICE CLASS (THE "CLASS"):
ANNUAL OPERATING EXPENSES
(as a percentage of the Fund's projected average daily net assets)
................................................................................
Investment advisory fee (after reimbursement or waiver)* 0.20%
12b-1 fee None
Other expenses (after reimbursement or waiver)** 0.45%
................................................................................
Total operating expenses (after reimbursement or waiver) 0.65%
* The Fund does not directly pay an investment advisory fee; the amount shown
reflects the Fund's proportionate share of the Portfolio's investment advisory
fee.
** "Other expenses" include premiums paid for Wrapper Agreements and certain
additional services provided to the Fund and the Portfolio by Bankers Trust,
including a shareholder servicing fee of 0.25%. Wrapper Agreements are contracts
entered into by the Portfolio that are intended to stabilize the value per Share
of the Fund (see "Investment Principles and Risk").
EXPENSE TABLE EXAMPLE: ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
An investor would pay the following
expenses on a $1,000 investment
assuming (1) 5% annual return and (2)
redemption at the end of each time
period. No Redemption Fee has been
included.
$7 $21 $44 $81
THE FOLLOWING REPLACES THE SECOND PARAGRAPH OF THE SECTION "THE FUND IN DETAIL"
IN THE CLASS' PROSPECTUS:
<PAGE>
The Portfolio's investment objective is a high level of current income while
seeking to maintain a stable value per Share. The Portfolio expects to invest at
least 65% of its net assets in fixed income securities ("Fixed Income
Securities") of varying maturities rated, at the time of purchase, in one of the
top three long-term rating categories by Standard & Poor's ("S&P"), Moody's
Investors Service, Inc. ("Moody's"), or Duff & Phelps Credit Rating Co., or
comparably rated by another nationally recognized statistical rating
organization ("NRSRO"), or, if not rated by a NRSRO, of comparable quality as
determined by Bankers Trust in its sole discretion.
THE FOLLOWING SUPPLEMENTS THE SECTION "MANAGEMENT OF THE TRUSTS" IN THE CLASS'
PROSPECTUS:
On June 4, 1999, Bankers Trust Corporation merged with a subsidiary of Deutsche
Bank A.G. ("Deutsche Bank"). Deutsche Bank is a major global banking institution
that is engaged in a wide range of financial services, including investment
management, mutual funds, retail and commercial banking, investment banking and
insurance. A Special Meeting of Shareholders ("Special Meeting") was held for
this purpose.
Shareholders voted at the Special Meeting to approve a new investment advisory
agreement (the "Advisory Agreement") with Bankers Trust Company ("Bankers
Trust"). Approval of the Advisory Agreement was sought because Deutsche Bank
became Bankers Trust's parent company and, therefore, controls its operations as
investment adviser.
At the Special Meeting, shareholders also approved a new investment advisory
agreement with Morgan Grenfell, Inc. As of October 5, 1999, Morgan Grenfell,
Inc. has been renamed Deutsche Asset Management Inc. The new investment advisory
agreement with DAMI may be implemented within two years of the date of the
Special Meeting upon approval of a majority of the members of the Trust's Board
of Trustees who are not "interested persons" ("Independent Trustees").
Shareholders also approved a new sub-investment advisory agreement among the
Fund's portfolio, DAMI and Bankers Trust under which Bankers Trust may perform
certain of DAMI's responsibilities, at DAMI's expense, upon approval of the
Independent Trustees, within two years of the date of the Special Meeting.
The new investment advisory agreement with DAMI and the new sub-investment
advisory agreement with Bankers Trust will permit Deutsche Bank to simplify the
organizational structure of its U.S. mutual fund operations, enhance the
efficiency of their administration and promote consistency of internal controls,
compliance and regulatory oversight. The deferral in implementing the new
investment advisory and sub-investment advisory agreements is needed to permit
Deutsche Bank a sufficient amount of time to plan, prepare and institute the
necessary arrangements for DAMI to consolidate Deutsche Bank's U.S. mutual fund
operations.
Under the new investment advisory agreements and new sub-investment advisory
agreement, the compensation paid and the services provided would be the same as
those under the Trust's Advisory Agreement with Bankers Trust.
2
<PAGE>
About DAMI. DAMI is located at 885 Third Avenue, 32nd Floor, New York, New York
10022. DAMI provides a full range of investment advisory services to
institutional clients. DAMI serves as investment adviser to ten other investment
companies and as sub-adviser to five other investment companies.
* * *
On March 11, 1999, Bankers Trust announced that it had reached an agreement with
the United States Attorney's Office in the Southern District of New York to
resolve an investigation concerning inappropriate transfers of unclaimed funds
and related record-keeping problems that occurred between 1994 and early 1996.
Bankers Trust pleaded guilty to misstating entries in the bank's books and
records and agreed to pay a $63.5 million fine to state and federal authorities.
On July 26, 1999, the federal criminal proceedings were concluded with Bankers
Trust's formal sentencing. The events leading up to the guilty pleas did not
arise out of the investment advisory or mutual fund management activities of
Bankers Trust or its affiliates.
As a result of the plea, absent an order from the SEC, Bankers Trust would not
be able to continue to provide investment advisory services to the Fund. The SEC
has granted Bankers Trust a temporary order to permit it and its affiliates to
continue to provide investment advisory services to registered investment
companies. There is no assurance that the SEC will grant a permanent order.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SUPP508 (10/99)
CUSIP:
055847834
3
