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                                                   PricewaterhouseCoopers LLP
                                                   1177 Avenue of the Americas
                                                   New York NY  10036
                                                   Telephone (212) 596-8000
                                                   Facsimile (212) 596-8910





                                December 2, 1998



Securities and Exchange Commission
73 Tremont Street Suite 600
Boston, MA  02108

Dear Sirs:

In compliance with Rule 17f-2 promulgated under the Investment Company Act of
1940, enclosed are our reports covering our examinations of the securities of
the Bankers Trust Company's U.S. Bond Index, Liquid Assets, Small Capital, Cash
Management, Treasury Money, Tax Free Money, NY Tax Free Money, Equity 500 Index,
Utility, Short/Intermediate U.S. Government Securities, Intermediate Tax Free,
Capital Appreciation, Asset Management, Asset Management II, Asset Management
III, Small Cap Index, Latin American Equity, Pacific Basin Equity, Global High
Yield Securities, EAFE Equity Index, BT Preservation (unwrapped), BT
Preservation Plus (wrapped) and International Equity Portfolios and BT
Investment Equity Appreciation, Equity 500 Index, Small Cap Index, EAFE Equity
Index and Institutional Daily Assets Funds at the close of business on October
31,1997.



                                Very truly yours,

                                /s/PRICEWATERHOUSECOOPERS LLP

KJB:das
Enclosures


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                                                   PricewaterhouseCoopers LLP
                                                   1177 Avenue of the Americas
                                                   New York NY  10036
                                                   Telephone (212) 596-8000
                                                   Facsimile (212) 596-8910


TO the Board of Trustees of:
U.S. Bond Index Portfolio
Liquid Assets Portfolio
Small Capital Portfolio
Cash Management Portfolio
Treasury Money Portfolio
Tax Free Money Portfolio
NY Tax Free Money Portfolio
Equity 500 Index Portfolio
Utility Portfolio
Short/Intermediate U.S. Government Securities Portfolio
Intermediate Tax Free Portfolio
Capital Appreciation Portfolio
BT Investment Equity Appreciation Fund
Institutional Daily Assets Fund
Asset Management Portfolio
Asset Management II Portfolio
Asset Management III Portfolio
Small Cap Index Portfolio
Latin American Equity Portfolio
Pacific Basin Equity Portfolio
Global High Yield Securities Portfolio
EAFE Equity Index Portfolio
International Equity Portfolio
Equity 500 Index Fund
Small Cap Index Fund
EAFE Equity Index Fund
BT Preservation (unwrapped)
BT Preservation Plus (wrapped)

We have examined the investment accounts shown on the books and records of the
U.S. Bond Index, Liquid Assets, Small Capital, Cash Management, Treasury Money,
Tax Free Money, NY Tax Free Money, Equity 500 Index, Utility, Short/Intermediate
U.S. Government Securities, Intermediate Tax Free, Capital Appreciation, BT
Investment Equity Appreciation Fund, Institutional Daily Assets Fund, Asset
Management, Asset Management II, Asset Management III, Small Cap Index, Latin
American Equity, Pacific Basin Equity, Global High Yield Securities, EAFE Equity
Index, International Equity,


Page Two
Board of Directors
December 2, 1998

Equity 500 Index Fund, Small Cap Index Fund, EAFE Equity Index Fund, BT
Preservation (unwrapped) and BT Preservation Plus (wrapped)(the "Portfolios")
from the date of our last similar examination on September 30, 1997 to October
31, 1997. Our examination was made without prior notice to the Portfolios.

Securities owned as of the close of business on October 31, 1997, shown by the
books and records audited by us, which were accounted for by count or
inspection, without exception, were located in the vault of Bankers Trust
Company, except for securities purchased but not received, held by depositories,
subcustodians, or out for transfer on that date as to which we obtained
confirmations or applied other auditing procedures where confirmations were not
received.

Our examination of the investment accounts also included, on a test basis,
inspection of broker advices and other appropriate evidence in support of
security transactions recorded on the Portfolio's records since September 30,
1997.

Because the above procedures do not constitute an audit made in accordance with
generally accepted auditing standards, we do not express an opinion on the
investment accounts referred to above. In connection with the procedures
referred to above, no matters came to our attention that caused us to believe
that the investment accounts should be adjusted. Had we performed additonal
procedures or had we performed an audit of the financial statements in
accordance with generally accepted auditing standards, matters might have come
to our attention that would have been reported to you.  This report relates only
to the investments specified above and does not extend to any financial
statements of the Portfolios taken as a whole.

It is understood that this report is solely for the use of management and the
Securities and Exchange Commission and should not be used for any other purpose.


                                              /s/ PRICEWATERHOUSECOOPERS LLP



New York, New York
December 2, 1998



                                  FORM N-17f-2


 Certificate of Accounting of Securities and Similar Investments in the Custody
                       of Management Investment Companies
                    Pursuant to Rule 17f-2(17 CFR 270.17f-2)

1. Investment Company Act File Number:              Date examination completed:
        811-4760    BT Investment Funds             October 31, 1997
        811-6071    BT Institutional Funds
        811-6576    BT Pyramid Mutual Funds
        811-7347    BT Advisor Funds

2. State Indentification Number.

AL             AK             AZ             AR             CA             CO
CT             DE             DC             FL             GA             HI
ID             IL             IN             IA             KS             KY
LA             ME             MD             MA             MI             MN
MS             MO             MT             NE             NV             NH
NJ             NM             NY             NC             ND             OH
OK             OR             PA             RI             SC             SD
TN             TX             UT             VT             VA             WA
WV             WI             WY             PUERTO RICO
Other (specify):

3. See 1 above

4. 127 West 10th Street, Kansas City, Missouri

INSTRUCTIONS

This Form must be completed by the investment companies that have custody of
securities or similar investments.

Investment Company

1. All items must be completed by the investment company.

2. Give this form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.

Accountant

3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law.  File the
original and one copy with the Securities and Exchange Commission's principal
office in Washington D.C., one copy with the regional office for the region in
which the investment company's principal business operations are conducted, and
one copy with the appropriate state administrator(s), if applicable.

          THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT

Note: The estimated average burden hours are made solely for purpose of the
Paperwork Reduction Act, and are not derived from a comprehensive or even a
representative survey or study of the costs of SEC rules and forms.  Direct any
comments concerning the the accuracy of the estimated average burden hours for
compliance with SEC rules and forms to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of Management
and Budget, Room 3208 New Executive Office Building, Washington, D.C. 20503.