NOTE 1--ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
BT Investment 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 BT Investment Lifecycle Long Range
Fund, Mid Range Fund and Short Range Fund (each a "Fund", and collectively, the "Funds") are three of the
funds offered to investors by the Trust. The Funds commenced operations and began offering shares of beneficial
interest on the following dates:
The Long Range Fund, Mid Range Fund and Short Range Fund invest substantially all of their assets in the Asset
Management Portfolio, Asset Management Portfolio II and Asset Management Portfolio III (each a "Portfolio"
and collectively, the "Portfolios"), respectively. The Portfolios are open-end management investment companies
registered under the Act. The Funds seek to achieve their investment objectives by investing all of their investable
assets in the respective Portfolio. The value of such investment in the Portfolios reflects each Fund's proportionate
interest in the net assets of the respective Portfolio. At March 31, 1997, the Long Range Fund's investment was
approximately 22% of the Asset Management Portfolio, the Mid Range Fund's investment was approximately
100% of the Asset Management Portfolio II and the Short Range Fund's investment was approximately 100% of
the Asset Management Portfolio III.
The financial statements of each of the Portfolios, including the Schedules of Portfolio Investments, are contained
elsewhere in this report.
B. INVESTMENT INCOME
Each Fund earns income, net of expenses, daily on its investment in the respective Portfolio. All of the net
investment income and realized and unrealized gains and losses from the security transactions of each Portfolio
are allocated pro rata among the investors in the Portfolio at the time of s