BT ADVISOR FUNDS
Global High Yield Securities Fund
Capital Appreciation Fund
Small Cap Fund
International Equity Fund
Pacific Basin Equity Fund
Latin American Equity Fund
Supplement to the Prospectus
Dated January 16, 1996
1. The paragraph numbered "11" under "Sales Charge Reductions and Waivers" on
page 35 is eliminated. Paragraph number "12" is
renumbered as "11."
2. The following replaces the information relating to Mary Lisanti, Managing
Director of Bankers Trust for the Small Cap Portfolio and the Capital
Appreciation Portfolio under the subheading "Portfolio Managers" on page 23
of the Funds' Prospectus:
Mr. Bluford Putnam (PhD), Managing Director of Bankers Trust and Chief
Investment Officer of Equity and Balanced Portfolios, is responsible for
the management oversight investment products specializing in small and
medium sized U.S. companies. The Small Cap and Capital Appreciation
Portfolios investment management includes seven investment professionals
headed by the team leader, Mr. Tim Woods (CFA), Vice President of Bankers
Trust.
Mr. Putnam has been employed by Bankers Trust since 1994. His previous
experience includes economist at the Federal Reserve Bank of New York,
principal at Morgan Stanley and Chief Economist at Kleinwort Benson, Ltd.
He was also a founding partner of Stern Stewart and Co., in 1982, a leading
corporate finance advisory firm and is the author of "The Blackwell Guide
to Wall Street," which focused, in part, on equity valuation.
Ms. Mary P. Dugan (CFA), Vice President of Bankers Trust, and Mr. Timothy
Woods (CFA), Vice President of Bankers Trust, share senior portfolio
management responsibilities of the Small Cap Portfolio. Ms. Dugan joined
Bankers Trust in 1994. She has 13 years of investment analysis experience.
Previously, she worked at Fred Alger Management, Dean Witter, Integrated
Resources and Equitable Investment Management Corporation. Mr. Wood Joined
Bankers Trust in 1992. He has twelve years of investment and financial
experience. Previously, he worked at Prudential Securities, Chase Manhattan
Bank and Bank of Boston. Mr. Anthony Takazawa (CFA), Vice President of
Bankers Trust, has senior portfolio management responsibilities for the
Capital Appreciation Portfolio. Mr. Takazawa joined Bankers Trust in 1996.
He has eight years of investment and financial analysis experience.
Previously, he worked at Phoenix Mutual Life Insurance Company as an
investment analyst, portfolio manager and director of research.
SUPPLEMENT DATED AUGUST 16, 1996
<PAGE>
3. Capital Appreciation Fund
International Equity Fund
Small Cap Fund
The following will be inserted immediately after the third paragraph on
page 6 of the Prospectus:
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for the period
presented for each of the Funds.
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<TABLE>
<S> <C> <C> <C>
Capital International
Appreciation Equity Small Cap
for the Period for the Period for the Period
February 16, February 16, February 16,
1996 1996 1996
(Commencement (Commencement (Commencement
of Operations) of Operations) of Operations)
to June 30, to June 30, to June 30,
1996 1996 1996
---- ---- ----
Per Share Operating Performance:
Net Asset Value, Beginning of Period.... $10.00 $10.00 $10.00
------ ------ ------
Income from Investment Operations:
Net Investment Income (loss)............ (0.04) 0.03 (0.02)
Net Realized and Unrealized Gain on Investments
and Foreign Currency Transactions.... 0.92 0.80 1.47
---- ---- ----
Total from Investment Operations........ 0.88 0.83 1.45
---- ---- ----
Net Asset Value, End of Period.......... $10.88 $10.83 $11.45
====== ====== ======
Total Investment Return................. 8.80% 8.30% 14.50%
Supplemental Data and Ratios:
Net Assets, End of Period (000's omitted) $717 $2,317 $1,818
Ratios to Average Net Assets:
Net Investment Income................ (1.01%)* 1.45%* (0.91%)*
Expenses, including Expenses of the
Portfolio+ 1.50%* 1.70%* 1.50%*
Decrease Reflected in Above Expense
Ratio Due to Absorption of Expenses
by Bankers Trust 5.39%* 3.87%* 4.71%*
* Annualized
+ Capital Appreciation Portfolio, International Equity Portfolio
and Small Cap Portfolio, respectively.
</TABLE>
