NOTE 1 -- ORGANIZATION AND SIGNIFICANT
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 July 21, 1986, as a
business trust under the laws of the Commonwealth of Massachusetts. The Short/Intermediate U.S. Government
Securities Fund (the "Fund") is one of the funds offered to investors by the Trust. The Fund commenced
operations and began offering shares of beneficial interest on August 24, 1992. The Fund invests substantially all
of its assets in the Short/Intermediate U.S. Government Securities Portfolio (the "Portfolio"). The Portfolio is an
open-end management investment company registered under the Act. The Fund seeks to achieve its investment
objective by investing all of its investable assets in the Portfolio. The value of such investment in the Portfolio
reflects the Fund's proportionate interest in the net assets of the Portfolio. At December 31, 1995, the Fund's
investment was approximately 42% of the Portfolio.
The financial statements of the Portfolio, including the Schedule of Portfolio Investments, are contained elsewhere
in this report.
B. Investment Income
The Fund earns interest income, net of expenses, daily on its investment in the Portfolio. All of the net investment
income and realized and unrealized gains and losses from the security transactions of the Portfolio are allocated
pro rata among the investors in the Portfolio at the time of such determination.
C. Organizational Expenses
Costs incurred by the Fund in connection with its organization and initial registration are being amortized evenly
over a period of sixty months.
The Fund declares dividends daily from net investment income and pays these dividends monthly. Dividends
payable to shareholders are recorded by the Fund on the ex-dividend date, which is the same as the declaration
date. Distributions of net realized