NOTE 1 - ORGANIZATION AND SIGNIFICANT
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 an
unincorporated business trust under the laws of the Commonwealth of Massachusetts. The Tax Free Money
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 June 10, 1987. Through February 18, 1991, the Fund invested
directly in securities. After that date, the Fund began investing all of its investable assets in the Tax Free Money
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 100% 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 gains and losses from the security transactions of the Portfolio are allocated pro rata among
the investors in the Portfolio.
It is the Fund's policy to declare dividends daily and to pay 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 short-term and long-term capital gains, if any, earned by the Fund will be made
annually to the extent they are not offset by any capital loss carryforwards.
D. Federal Income Taxes
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