<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
May 24, 2000
Dear Shareholder:
We are pleased to present the semi-annual report for Schroder Capital Funds
(Delaware) for the six months ended April 30, 2000.
The first half of fiscal 2000 was a period of great change for Schroders. On
January 18, 2000, Schroders plc announced the sale of its investment banking
business to Salomon Smith Barney. It is expected that the sale of the investment
bank will prove to have several positive implications for the Schroder
Investment Management companies. First, the sale provides ample capital
available for investment in our business. In addition, investment management is
now the dominant focus of the entire Schroders organization.
During this reporting period, the global economic rebound has continued to
gain momentum. The U.S. economy roared ahead in the early part of the period,
spurring the Federal Reserve to hike interest rates by 75 basis points through
April and by another 50 basis points in May. Yet this period of monetary policy
tightening was not limited to the United States: both the U.K. and the ECB
increased interest rates during this period. In general, emerging markets showed
renewed strength in the first half of fiscal 2000.
Volatility was the hallmark of the past six months, as technology and
related stocks finally corrected sharply toward the end of the period. There was
a decisive rotation out of these more speculative issues and into more
value-oriented segments, leaving experts debating whether the volatility signals
a clear turning point or merely the rationalization of the most severely
overvalued "new economy" stocks. We believe that times like these support the
case for a disciplined, diversified investing program, including smaller-cap
equities, international and emerging markets, and fixed-income investments.
This report includes performance information, the schedule of investments,
comments from portfolio managers, and other relevant information for each Fund.
We encourage you to read the report, and thank you for making Schroders part of
your investment program.
Sincerely,
/s/ Alexandra Poe
Alexandra Poe
PRESIDENT
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder International Fund's Investor Shares rose 14.66% during the six
months ended April 30, 2000, outperforming the MSCI EAFE Index, which returned
6.75% over the period.
Several factors contributed to the Fund's strong performance. Stock
selection in Europe, Asia and Latin America was critical, as were country
allocation and sector selection.
MARKET BACKGROUND
Equity markets were volatile during the six-month period, with technology
and related names soaring during the first part of the period under review.
These more speculative names quickly corrected during the first quarter of 2000,
however, and market participants began to seek value in other sectors.
This was also a period of rising global interest rates. European countries
followed the Federal Reserve's lead and tightened monetary policy.
Results in Asia were mixed. The Japanese economy continued to slow, and
actually dipped into recession briefly late last year, while the Taiwanese
market--where capital spending on technology continued to expand--was among the
best performers during the period. In Brazil and Mexico, strong economic growth
helped the equity markets to outperform through most of the period, but then
suffered losses, as security prices fell in April.
PORTFOLIO REVIEW
The Fund benefited from its overweighted allocations in the technology,
telecommunications and media sectors, which surged in the period until the March
correction. As the rotation out of the more speculative technology names began,
the Fund benefited from its timely shift into more value-oriented sectors, such
as pharmaceuticals, energy, financials, and utilities. Our top-performing stocks
included ERICSSON, MANNESMANN and VODAPHONE AIRTOUCH, and media names such as
CANAL PLUS, VIVENDI and BRITISH SKY BROADCASTING. In Japan, we focused on
quality technology names such as SONY and MURATA, and holdings in the financial
sector such as SAKURA BANK and NOMURA SECURITIES. Other holdings that boosted
the Fund's performance included TAIWAN SEMICONDUCTOR in Taiwan, TELEBRAS in
Brazil, TELEMEX in Mexico, and HUTCHISON WHAMPOA in Hong Kong. As
technology-oriented stocks began to fall out of favor, the Fund benefited from
positions in NOVARTIS and GLAXO WELLCOME (pharmaceuticals) and ENDESA
(utilities). The Fund's holdings of WOLTERS KLUWER, a Dutch publisher, and
DEUTSCHE BANK, which fell on merger news, constrained its total return. Our
major liquidations during the period came within the technology,
telecommunications and media sectors.
Country allocation also proved a key to the Fund's favorable performance
during the period. As heightened concerns over risk in financial markets
surfaced in March, resulting from excessive speculative activity and widening
credit spreads, we reduced vulnerable areas of the Fund's portfolio,
particularly in emerging Asian stocks and interest-sensitive markets of Hong
Kong and Singapore.
The Fund's underweighted positions in the U.K. and Japan were beneficial, as
U.K. central bankers followed U.S. officials and raised interest rates, and
economic conditions in Japan continued to deteriorate. Our overweighted exposure
in Taiwan helped the Fund's performance, as that country--a manufacturing hub
for technology products--benefited from the ever-expanding capital spending on
technology. During the second half of 1999, we invested in both Brazil and
Mexico, anticipating a strong upturn in Latin America following the Brazilian
currency devaluation. The equity markets in these countries performed quite well
through most of the six-month period under review, and we trimmed our positions
there in February and March, thus avoiding the substantial decline in Latin
security prices that occurred in April.
--------------------------------------------------------------------------------
2
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL FUND
--------------------------------------------------------------------------------
OUTLOOK
We look for continued strong global growth in 2000, which will provide a
healthy backdrop for corporate profits. However, the current hurdle for equity
markets is the rising interest rate environment. Investors seem to be
underestimating the magnitude of monetary tightening and its impact on global
equity markets. Therefore, we anticipate that heightened risk in financial
markets, on the heels of interest rate hikes in the U.S. and Europe, will lead
to a more defensive posture within portfolios. Market volatility is likely to
remain high.
Within a global context, we remain positive on Taiwan, but the relative
attractiveness of Japanese equities will remain a concern, as recent economic
data have proved disappointing and foreign buying of Japanese equities has
slowed considerably. Any significant retreat in the technology area could have a
profound impact on Japan, as we believe that is one of the few bright spots in
the economy.
As the Fund's general portfolio composition was shifted markedly earlier
this year, we are comfortable going forward with a more neutral allocation to
technology, telecommunications and media companies, and a greater emphasis on
pharmaceutical, energy, financial, and utility companies.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO
MANAGERS AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME
THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF EACH FUND IN
UNDERSTANDING THEIR INVESTMENTS IN THE FUND AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
3
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
COUNTRY WEIGHTINGS
<TABLE>
<CAPTION>
COUNTRY % OF NET ASSETS
<S> <C>
------------------------------------------------
Japan 19.2%
United Kingdom 15.0
France 13.0
Germany 8.4
Netherlands 7.1
Switzerland 6.8
Spain 4.9
Sweden 4.0
Canada 2.3
Taiwan 1.2
Australia 1.1
Singapore 1.0
Mexico 0.7
Finland 0.7
Italy 0.6
Ireland 0.6
Portugal 0.3
South Africa 0.3
New Zealand 0.2
Hong Kong 0.1
Cash Equivalents and Other
Net Assets 12.5
------
Total 100.0%
======
</TABLE>
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
------------------------------------------------
Vodafone AirTouch 4.9%
Novartis 4.1
Telefonaktiebolaget LM
Ericsson "B" 4.0
Endesa 3.3
Total Fina 3.1
Deutsche Bank 2.8
Alcatel 2.8
Royal Dutch Petroleum 2.6
ING Groep 2.6
Vivendi 2.5
-----
Total 32.7%
=====
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS TEN YEARS ONE YEAR FIVE YEARS TEN YEARS
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000 2000 2000 2000
--------- ---------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Schroder International Fund--
Investor Shares...................... 30.52% 14.41% 10.50% 21.29% 12.77% 10.07%
</TABLE>
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH
WILL FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
--------------------------------------------------------------------------------
4
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder Emerging Markets Fund's Investor Shares posted a total return
of 15.47% for the six-month period ended April 30, 2000. The MSCI Emerging
Markets Free Index returned 13.11% over the same period.
Relative to the Index, the Fund benefited from positive country selection,
notably the underweight position in Greece, and strong stock selection in
technology-related stocks in markets such as Taiwan. The Fund's performance was
hampered because it held no position in a particularly well-performing Indian
software company that is difficult to invest in as it is closely held but
represents a significant weighting in the Index.
MARKET BACKGROUND
Emerging markets showed renewed strength in the six months ended April 30,
2000, outperforming developed markets, although they consolidated late in the
period. The external environment generally was favorable thanks to balanced
global growth. In addition, recent upgrades to economic and earnings numbers
helped emerging markets offset the initial negative effect of rising interest
rates in developed markets, particularly the United States. Business cycles and
the direction of interest rates have varied across emerging markets, with
interest rates moving higher in Asia, generally falling in Latin America and
mixed within Europe, the Middle East and Africa (EMEA).
Early in the six-month period, Asian markets performed well but later
suffered from the global technology sell-off. Malaysia was the best-performing
market, as it benefited from a continuing recovery in economic growth, led by a
resurgence in exports to the region and the United States. India was also
strong, in light of the higher-than-expected demand for software development
services. Taiwan outperformed, as it became clear that its relationship with
China under its new President, Chen Shui-bian was not likely to worsen. China
benefited from its nascent economic recovery, although its ability to cut rates
was constrained by high oil prices. Korea suffered from fears that the country's
loose monetary policy would result in higher inflation and interest rates.
Latin America initially benefited from Mexican and Brazilian debt rating
upgrades, falling interest rates, reduced political risk, and corporate
activity, but later suffered from its high correlation to the NASDAQ. The main
event in the region was the upgrade by Moody's of Mexico's sovereign debt to
investment grade, thus paving the way for lower-cost finance from capital
markets. Brazil benefited from improving economic fundamentals. Brazil's fiscal
deficit declined, and low inflation helped keep real interest rates low. These
factors, together with ratings upgrades, supported the real economy.
Eastern European countries produced some of the strongest returns over the
period, spurred by improving economic fundamentals and corporate restructuring,
with particularly robust gains registered by large telecommunications stocks.
The Russian equity market responded positively to the resignation of Boris
Yeltsin. Vladimir Putin's victory in the presidential elections reinforced
expectations of political stability and implementation of much-needed structural
reform. Higher oil prices also helped, providing windfall tax revenues for the
Russian government and a substantial current account surplus.
Turkey benefited from further progress in its privatization program and from
a credible plan to reduce inflation in order to meet IMF targets. Israel was
boosted by falling interest rates, as well as its high concentration in the
technology sector. However, the technology boom experienced early in the quarter
by Israel's stocks that are co-listed on the NASDAQ, rendered it vulnerable to
the shake-out in global technology stocks that followed.
PORTFOLIO REVIEW
The Fund remained modestly overweight in Latin America, as the region
benefited from economic recovery and earnings upgrades. Our preferred markets
within Latin America were Brazil and Mexico, given our
--------------------------------------------------------------------------------
5
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
expectations of stronger economic and earnings growth. However, we started to
reduce the Fund's exposure to both countries, as they appeared vulnerable to
U.S. market and economic shocks. We increased the Fund's exposure to Asia
through purchases in Taiwan, Malaysia and China, partially in anticipation of
forthcoming MSCI Index changes (see discussion below), but also because of
strong fundamentals. We reduced the Fund's allocation to Korea, however, because
of rising inflation and interest rates. Within EMEA, we maintained underweight
positions for the Fund in Greece and South Africa.
While the Fund was overweight the technology and telecommunications sectors,
we focused our exposure on companies that we expect will benefit from the
fundamental support of high growth potential and attractive margins, rather than
purer "new economy" plays that appear most vulnerable to further market
corrections. The majority of the Fund's technology exposure is in Taiwan, Korea
and India, where it has invested in hardware and software companies such as
TAIWAN SEMICONDUCTOR (the world's first pure integrated circuit foundry
company).
OUTLOOK
The outlook for emerging markets PRIMA FACIE appears positive: Global growth
remains supportive, valuations are low relative to developed markets, and the
visible recovery in most emerging market economies should be reflected in upward
earnings revisions.
Yet there are risks of external shocks, and the recent global sell-off of
technology stocks and concerns over the U.S. economy will likely have
repercussions for emerging markets. While we believe that a "soft landing" can
be achieved in the United States, there is some concern that in a worst-case
scenario, a sustained correction in technology-related stocks could damage
overall market confidence and cause a negative wealth effect, which combined
with rising interest rates, might precipitate a "hard landing." This said, we
believe that there is sufficient momentum within the emerging markets to weather
all but the worst scenarios, and we anticipate that emerging market countries
will, on the whole, continue to perform well relative to developed markets.
Technical considerations will be among the most important issues affecting
Asia in the coming months. Malaysia will re-enter the MSCI EMF Index on May 31,
2000, and is expected to represent around 7% of the Index, up from 3.7% prior to
its removal. The MSCI has also announced Index changes for Taiwan and China.
Taiwan will be increased gradually to avoid market dislocations, from its
current 50% market capitalization weighting to a 65% weighting on May 31, 2000,
and ultimately to a 100% weighting by May 31, 2001. China's weighting in the
MSCI EMF Index will be raised from 0.4% to around 6% on May 31, 2000, when it
includes Hong Kong listed stocks (Red Chips) for the first time. By implication,
all these changes will cause the weightings of other markets in this Index to
fall.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO
MANAGERS AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME
THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF EACH FUND IN
UNDERSTANDING THEIR INVESTMENTS IN THE FUND AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
6
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
COUNTRY WEIGHTINGS
<TABLE>
<CAPTION>
COUNTRY % OF NET ASSETS
<S> <C>
------------------------------------------------
Taiwan 18.4%
Korea 15.4
Mexico 8.4
Brazil 6.8
Israel 5.5
India 5.3
South Africa 4.8
Turkey 4.2
Malaysia 3.9
Hong Kong 3.0
Russia 2.2
Thailand 1.5
Hungary 1.5
China 1.0
Zimbabwe 0.9
Argentina 0.8
Greece 0.8
Philippines 0.6
Chile 0.5
Poland 0.4
Peru 0.3
Egypt 0.2
Czech Republic 0.1
Cash Equivalents and Other
Net Assets 13.5
------
Total 100.0%
======
</TABLE>
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
------------------------------------------------
Samsung Electronics 8.8%
United Microelectronics 3.1
Taiwan Semiconductor
Manufacturing 3.0
Telefonos de Mexico 3.0
Pentamedia Graphics 2.2
Videsh Sanchar Nigam 2.1
Advantech 1.7
Via Technologies 1.6
Polaris Securities 1.4
Samsung Pfd 1.3
-----
Total 28.2%
=====
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR AVERAGE ANNUAL ONE YEAR AVERAGE ANNUAL
ENDED RETURN FROM ENDED RETURN FROM
MARCH 31, INCEPTION TO APRIL 30, INCEPTION TO
2000 MARCH 31, 2000(1) 2000 APRIL 30, 2000(1)
--------- ----------------- --------- -----------------
<S> <C> <C> <C> <C>
Schroder Emerging Markets Fund--
Investor Shares................................ 72.01% 22.21% 30.09% 14.81%
</TABLE>
(1)From commencement of operations (October 31, 1997).
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH
WILL FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
--------------------------------------------------------------------------------
7
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder International Smaller Companies Fund's Investor Shares had a
total return of 38.22% for the six-month period ended April 30, 2000, compared
with the Salomon Smith Barney EMI EPAC Index, which rose by 4.99% over the same
period.
The Fund's strong relative performance resulted, in part, from strong stock
selection, especially in Europe.
MARKET BACKGROUND
Smaller company equities in international markets made modest progress over
the first half of the six-month period. The bulk of the performance was seen
toward calendar year-end, reflecting a benign global environment of accelerating
economic growth (with the notable exception of Japan), still-subdued inflation
and relatively modest upward pressure on interest rates. However, sharp
corrections were seen in April, as robust economic data in the United States
sparked more general interest rate concerns, and investors re-assessed the
valuations in the previously strong-performing sectors of technology, media and
telecommunications.
Market volatility and divergent sector performance characterized the
six-month period under review. In international markets, investors sought
exposure to secular growth stocks far more so than either value or cyclical
stocks.
Europe--especially Continental markets--generally provided the most
favorable returns in the international smaller companies markets. The Euro
monetary bloc offered an attractive combination of accelerating economic growth,
and despite the weakness of the currency, ample productive capacity and
restructuring kept inflation pressures in check. The impact of dynamic
technology-driven change and the growth of an equity culture were particularly
evident in the performance of smaller companies in Europe. Markets aiming to
encourage the listing of earlier stage companies such as the Nouveau Marche in
France and the Neuer Markt in Germany continued to grow, as initial public
offering (IPO) volumes remained buoyant.
Small companies in the U.K. continued to outperform their larger
counterparts. Although the overall climate for equities in the U.K. was not
particularly favorable--with a combination of rising interest rates and sterling
strength--small company performance was underpinned by strength in the
technology sectors and by a high level of merger and acquisition activity.
Japan was disappointing. Economic activity fell short of expectations,
reflecting sluggish growth in consumption and a tailing off of the impact of
fiscal packages. The downward revisions of growth expectations had a
particularly negative impact on sentiment surrounding smaller companies, which
are widely perceived as more economically sensitive than larger firms.
PORTFOLIO REVIEW
The Fund's country allocations remained broadly the same throughout the
six-month period, with overweightings in Continental Europe, Hong Kong and
Singapore balanced by underweights in the U.K. and Japan.
With the supportive growth outlook and prospect of earnings upgrades, we
maintained an overweight position in Continental Europe. However, given the
strong relative performance of the Fund's European holdings, the Fund profited
by selling some of these holdings. Sales included ENDEMOL ENTERTAINMENT, a Dutch
content provider, and MODERN TIMES GROUP, a Swedish media company.
--------------------------------------------------------------------------------
8
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
In late 1999, activity among small stocks in Japan became increasingly
concentrated in a narrower range of sectors, particularly technology.
Furthermore, as the economic situation deteriorated in the short term, smaller
company valuations became more compelling, especially when set against our own
forecasts of modest economic recovery in the second half of 2000. Consequently,
the Fund was a net buyer of Japanese equities over the period, with new holdings
in industries such as pharmaceuticals (TORII), retailing (ARC LAND SAKAMOTO,
UNITED ARROWS) and paper (RENGO).
The Fund maintained its underweight position in the U.K. in light of the
combination of strong sterling, rising interest rates and a likely slowing in
the economy. However, some of the proceeds from profit taking in Continental
Europe were redeployed through purchases in a broad range of industries,
including transportation (ARRIVA), specialist engineering (FAIREY GROUP), food
distribution (BOOKER), telematic systems (MINORPLANET SYSTEMS) and systems
integration (PARITY GROUP).
OUTLOOK
Prospects for international small company equities cannot be viewed
separately from the macroeconomic trends that concern investors--in particular,
whether a slowdown in the United States economy can be achieved without either
undue monetary tightening or excessive inflation pressure. We believe that a
soft landing can be achieved in the United States while steady expansion in
Europe, a gradual recovery in Japan and strong growth elsewhere in Asia could
sustain global economic activity.
Investors have become more selective in the assessment of stocks in the
technology, media and telecommunications sectors. However, rapidly increased
communication capacity and growth in both the consumer and corporate use of
information technology continue to provide a dynamic background for investment
in international smaller companies, giving investors exposure to new markets at
an early stage. On a broader basis, we believe that smaller companies continue
to offer good value relative to large companies. Prospects in the U.K. are
supported by continued corporate activity and, in Japan, by possible economic
recovery.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO
MANAGERS AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME
THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF EACH FUND IN
UNDERSTANDING THEIR INVESTMENTS IN THE FUND AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
9
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
COUNTRY WEIGHTINGS
<TABLE>
<CAPTION>
COUNTRY % OF NET ASSETS
<S> <C>
------------------------------------------------
United Kingdom 21.5%
Japan 19.3
France 13.0
Germany 10.2
Netherlands 4.6
Spain 4.2
Singapore 3.6
Sweden 3.4
Switzerland 2.8
Italy 2.8
Ireland 2.7
Hong Kong 2.3
Finland 2.2
Luxembourg 1.0
Cash Equivalents and Other
Net Assets 6.4
------
Total 100.0%
======
</TABLE>
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
------------------------------------------------
Marschollek, Lautenschlaeger
und Partner Pfd 2.2%
GFI Informatique 2.2
SmartForce 2.2
Comptel Oyj 2.2
OM Gruppen 2.1
Societe Pour L' Informatique 2.0
Telegate 1.9
Genesys 1.9
Roesch Medizinetechnik 1.7
SEZ Holding 1.5
-----
Total 19.9%
=====
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR AVERAGE ANNUAL ONE YEAR AVERAGE ANNUAL
ENDED RETURN FROM ENDED RETURN FROM
MARCH 31, INCEPTION TO APRIL 30, INCEPTION TO
2000 MARCH 31, 2000(1) 2000 APRIL 30, 2000(1)
--------- ----------------- --------- -----------------
<S> <C> <C> <C> <C>
Schroder International Smaller Companies Fund--
Investor Shares................................ 112.84% 31.93% 74.00% 26.57%
</TABLE>
(1)From commencement of operations (November 4, 1996.)
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH
WILL FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
--------------------------------------------------------------------------------
10
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
For the six months ended April 30, 2000, the Schroder U.S. Diversified
Growth Fund's Investor Shares returned 23.23%. The S&P 500 Index rose 7.17% over
the same period.
Strong stock selection in technology and capital goods accounted for most of
the Fund's outperformance, especially our overweight position in technology. The
Fund's technology holdings produced returns that were more than twice those of
the S&P 500 technology sector. The Fund's underweight positions in communication
services and health care also contributed positively to relative performance.
The Fund's largest constraints, in the aggregate, were regional bank shares in
the financial sector.
MARKET BACKGROUND
The secular earnings power of technology stocks and the torrid rate of U.S.
economic growth dominated investor attention during the six months.
Millennium-end enthusiasm for the internet and e-commerce drove technology
shares to record highs in the final months of 1999 and into mid-March 2000. At
the same time, U.S. economic growth accelerated into the New Year. The market
believed that the Federal Reserve would be successful in slowing the economy and
that the end of the tightening was visible. Consistent with the bond market, the
stock market had an appetite only for those companies whose secular growth could
provide some immunity to a slowing economy. In this environment, technology
stocks were the clear winners.
By April, however, economic growth was showing little indication of easing.
Against a background of rising short-term interest rates and an increasingly
hawkish Federal Open Market Committee (FOMC), investors anxiously awaited signs
of slower growth. Long-term interest rates began to back up, and the first
worrisome evidence of inflation pressures appeared in the Consumer Price Index
and Employment Cost Index. Valuation once again became important to investors.
The premium that should be afforded secular growth in a rising interest rate
environment became the question of the moment. This environment hurt stocks with
relatively high price/earnings (P/E) multiples, and this led to the
underperformance of the technology-heavy NASDAQ Composite and the technology
sectors of both the S&P 500 and the Russell 2000. Likewise, communication
services also lagged the S&P 500 Index. The perceived safety of the utility
sector attracted more defensive-minded investors and produced well above-average
returns. The market, however, did not completely dismiss the value of superior
long-term stable growth in the face of potentially more drastic measures to slow
the pace of the economy. The health care segment showed improving returns.
PORTFOLIO REVIEW
During the six months ended April 2000, the Fund's technology shares
performed exceptionally well. In this sector, TERADYNE, ANALOG DEVICES, ATMEL,
ADC TELECOMMUNICATIONS, NETWORK SOLUTIONS, and VERISIGN all more than doubled
over the period, despite April's sell-off in the sector. ANALOG DEVICES, ATMEL,
and TERADYNE benefited from improving fundamentals for computer chip companies
and semiconductor equipment manufacturers. The fast pace of growth in the
telecommunications sector spurred the performance of ADC TELECOMMUNICATIONS. The
explosive growth of the internet and e-commerce drove the performance of
VERISIGN and NETWORK COMMUNICATIONS. SYMBOL TECHNOLOGIES, which provides
wireless and mobile information technologies, and CELESTICA CORP., which
manufactures technology and service solutions for circuit and system assembly
also benefited from the pickup in technology and contributed to the Fund's
strong showing. The biggest detractors to the Fund's performance were
UNIONBANCAL, HARRAHS ENTERTAINMENT and HERTZ.
--------------------------------------------------------------------------------
11
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
OUTLOOK
We anticipate that volatility will remain high in the context of the FOMC's
efforts to engineer a so-called "soft landing" for the U.S. economy, and that
higher interest rates will continue to affect earnings. In this environment, we
will continue to focus on high-quality companies with strong managements and
attractive earnings growth.
We wish to take this opportunity to inform you that the Trustees have
approved a change in the Fund's market capitalization range such that it
normally invests in securities of companies with market capitalizations in
excess of $5 billion (at the time of investment).
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO
MANAGERS AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME
THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF EACH FUND IN
UNDERSTANDING THEIR INVESTMENTS IN THE FUND AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
12
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
Security % of Net Assets
<S> <C>
--------------------------------------------------
Teradyne 4.1%
Analog Devices 3.9
Atmel 3.9
ADC Telecomminications 3.7
Network Solutions Class A 3.5
VeriSign 3.1
Symbol Technologies 3.1
ARM Holdings ADR 3.1
Dynergy Class A 2.8
Waters 2.6
-----
Total 33.8%
=====
</TABLE>
INVESTMENTS BY SECTOR
<TABLE>
<CAPTION>
Sector % of Net Assets
<S> <C>
--------------------------------------------------
Basic Materials 5.5%
Capital Goods 6.1
Computer Software 9.8
Consumer Cyclicals 21.8
Consumer Staples 1.0
Energy 9.4
Financial Services 5.1
Technology 29.0
Telecommunications 4.6
Transportation 5.1
Cash Equivalents and Other Net
Assets 2.6
------
Total 100.0%
======
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS TEN YEARS ONE YEAR FIVE YEARS TEN YEARS
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000 2000 2000 2000
--------- ---------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Schroder U.S. Diversified Growth Fund--
Investor Shares...................... 34.86% 24.59% 18.29% 32.49% 24.12% 18.54%
</TABLE>
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH
WILL FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
--------------------------------------------------------------------------------
13
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
For the six months ended April 30, 2000, the Schroder U.S. Smaller Companies
Fund's Investor Shares rose by 32.68%, and its Advisor Shares rose by 32.39%,
outpacing the Fund's benchmark, the Russell 2000 Index, which climbed by 18.72%.
MARKET BACKGROUND
The past six months were both rewarding and eventful for U.S. smaller
companies. From the end of October 1999 to the middle of March 2000, smaller
companies staged a dramatic rally, with the Russell 2000 Index soaring by more
than 40%. This substantial rise was followed by a precipitous drop during the
next four weeks. While the Fund trailed the Russell 2000 Index during the
advance, it generated significant positive returns and held on to those gains
while the market as a whole declined sharply.
PORTFOLIO REVIEW
We maintained our discipline for the Fund by focusing on growing and
profitable companies that trade at reasonable valuations. For the first four
months of the period under review, this approach was decidedly out of favor, as
investors bid up the most speculative concept stocks. Beginning in December, the
biotechnology sector took off, with many companies doubling and tripling on
hopes of genomic discoveries that we believe to be years away. Internet
companies also performed well during this period, with business-to-business
e-commerce companies supplanting the market's former favorites, the "e-tailers."
Beginning in mid-March, investors once again began to focus on fundamentals, and
this change, coupled with a tremendous supply of stock in both new and existing
companies, pressured these narrowly held and speculative issues. This decline
continued through mid-April, with the Russell 2000 falling by nearly 20% between
April 7 and April 14. In light of this tremendous volatility, many companies
ended April more than 50% below their mid-March highs.
While technology was a very volatile sector in the market over the past six
months, it was an important contributor to the performance of the Fund. Because
we focus on profitable companies, we missed both the rise and fall of the
Internet sector. We did, however, benefit indirectly through our substantial and
growing technology weighting. Within the sector, our largest allocation, by far,
was in semiconductors, which we view as the building block of the Internet and
wireless revolution. Companies such as BURR BROWN, INTEGRATED DEVICE
TECHNOLOGIES and GENERAL SEMICONDUCTORS all reported strong profit growth and
contributed significantly to the Fund's performance. Similarly, our holdings in
tower operators, PINNACLE HOLDINGS and SBA COMMUNICATIONS, also boosted the
Fund's performance and are representative of our profit-oriented approach to
technology investing.
The Fund also benefited greatly from its overweight position in the energy
sector. Oil service holdings, such as B.J. SERVICES, COOPER CAMERON and
WEATHERFORD INTERNATIONAL, all rose sharply as a result of climbing oil and gas
prices. Finally, our allocation to financial stocks also contributed to the
Fund's performance. Our concentration in niche companies, such as DUFF & PHELPS
CREDIT and AFFILIATED MANAGERS GROUP, enabled us to succeed in a sector that was
dominated by earnings disappointments and multiple contraction.
The biggest drag on performance came from the consumer sector. Earnings
disappointments from companies such as PAPA JOHNS INTERNATIONAL and HELEN OF
TROY combined with tremendous multiple contraction contributed to investors'
fears about the impact of rising interest rates on retailers and restaurants.
OUTLOOK
Looking forward, we continue to search for companies for the Fund that can
expand their earnings independently of the economic cycle. We believe that many
smaller companies offer more attractive investment
--------------------------------------------------------------------------------
14
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
opportunities than do large companies based on valuation and growth rates.
Although the near-term interest rate and economic outlook is murky, the market
is showing signs that fundamentals are becoming more important--a very positive
sign for our style of investing. We will remain focused on individual stock
selection, and we will concentrate on underfollowed and misunderstood companies
that we believe can offer superior earnings growth.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO
MANAGERS AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME
THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF EACH FUND IN
UNDERSTANDING THEIR INVESTMENTS IN THE FUND AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
15
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
Security % of Net Assets
<S> <C>
--------------------------------------------------
Laboratory Corp. of America
Holdings 2.2%
Integrated Device Technology 1.7
Sybron International 1.7
Amphenol 1.6
Hanover Compressor 1.6
Universal Health Services 1.5
Symantec 1.5
Edwards Lifesciences 1.4
Rent-Way 1.4
PerkinElmer 1.4
-----
Total 16.0%
=====
</TABLE>
INVESTMENTS BY SECTOR
<TABLE>
<CAPTION>
Sector % of Net Assets
<S> <C>
--------------------------------------------------
Basic Industries 1.0%
Business Services 1.0
Capital Goods 4.1
Consumer Cyclicals 13.4
Consumer Staples 0.7
Energy 8.6
Financials 5.6
Health Care 15.7
Media 3.0
Technology 15.4
Technology - Cellular
Telecommunications 3.0
Technology - Semiconductors 11.8
Technology - Software 4.5
Transportation 0.3
Utilities 3.1
Cash Equivalents and Other Net
Assets 8.8
------
Total 100.0%
======
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS AVERAGE ANNUAL ONE YEAR FIVE YEARS AVERAGE ANNUAL
ENDED ENDED RETURN FROM ENDED ENDED RETURN FROM
MARCH 31, MARCH 31, INCEPTION TO APRIL 30, APRIL 30, INCEPTION TO
2000 2000 MARCH 31, 2000(1) 2000 2000 APRIL 30, 2000(1)
--------- ---------- ----------------- --------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Schroder U.S. Smaller
Companies Fund--Investor.... 45.70% 20.81% 19.56% 34.79% 20.24% 19.34%
Schroder U.S. Smaller
Companies Fund--Advisor..... 45.29 20.54(2) 19.29(2) 36.58 19.97(2) 19.07(2)
</TABLE>
(1)From commencement of operations (August 6, 1993).
(2)Performance for the Fund's Advisor Shares includes information for the Fund's
Investor Shares for the periods prior to the inception date of Advisor Shares
(December 23, 1996). Such prior performance has been recalculated to reflect the
actual fees and expenses attributable to Advisor Shares.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH
WILL FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
--------------------------------------------------------------------------------
16
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MICRO CAP FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
For the six months ended April 30, 2000, the Schroder Micro Cap Fund's
Investor Shares rose by 82.30%, outpacing the Fund's benchmark, the Russell 2000
Index, which rose by 18.72%.
MARKET BACKGROUND
The past fiscal year has been both rewarding and eventful for U.S. micro cap
companies. From the end of October to the middle of March, smaller companies
staged a dramatic rally, with the Russell 2000 Index rising by over 40%. This
substantial rise was followed by a sharp decline over the next four weeks. The
Fund outperformed the Russell 2000 Index during its rise, and because of the
Fund's hedging strategy, held on to those gains while the market as a whole
declined sharply.
PORTFOLIO REVIEW
For the first four months of the period under review, investment styles
guided by valuation disciplines were decidedly out of favor, as investors bid up
the most speculative concept stocks. Internet companies performed well during
this period, with business-to-business e-commerce companies supplanting the
market's former favorites, the "e-tailers." Beginning in mid-March, investors
once again began to focus on fundamentals, and this change, coupled with a
tremendous supply of stock in both new and existing companies, pressured these
narrowly held and speculative issues. This decline continued through mid-April,
with the Russell 2000 falling by nearly 20% between April 7 and April 14. In
light of this tremendous volatility, many companies ended April more than 50%
below their mid-March highs.
While technology was a very volatile sector in the market over the past six
months, it was an important contributor to the performance of the Fund. We
benefited from our investments in semiconductor companies such as INTEGRATED
SILICON SOLUTIONS, MATTSON TECHNOLOGIES, ROBOTIC VISION SYSTEMS, and MICRO
COMPONENT TECHNOLOGIES. In addition, underfollowed companies such as test and
measurement equipment maker, KEITHLEY INSTRUMENTS, and streaming video maker,
MEDIA 100, reported strong profit growth, and thus attracted investor attention.
Finally, initial public offerings of technology stocks, most of which
appreciated quite nicely, added significantly to performance. These companies
had explosive initial performance, and we took quick profits, as we felt the
market price was unsustainable. We recognize that the opportunity to invest in
initial public offerings may not be available to the Fund to a significant
degree or at all in future periods and that the Fund's performance may not be as
favorable in such circumstances.
In addition to technology, the Fund benefited greatly from its holdings in
the health care and consumer sectors. In health care, we avoided the biotech
boom and bust, profiting instead from companies such as NORTH AMERICAN
SCIENTIFIC, a leading manufacturer of radioactive seeds used to treat prostate
cancer, and LIFEPOINT HOSPITALS. In the consumer sector, selectivity was key,
and our investments in BRAUN'S FASHIONS, HIBBETT SPORTING GOODS and AMERICAN
ITALIAN PASTA, all paid off handsomely.
Among the laggards were pizza maker, PJ AMERICA, and specialty retailer,
TRACTOR SUPPLY, which fell sharply on disappointing sales. Similarly, concerns
about rising interest rates hurt other stocks held by the Fund, including
building materials company, NORTEK. The Fund's investment in video rental
company, MOVIE GALLERY, suffered from a lack of investor interest in that
industry.
OUTLOOK
Looking forward, we continue to search for companies that can expand their
earnings independently of the economic cycle. We believe that many smaller
companies offer more attractive investment opportunities than do
--------------------------------------------------------------------------------
17
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MICRO CAP FUND
--------------------------------------------------------------------------------
large companies based on valuation and growth rates. Although the near-term
interest rate and economic outlook is murky, the market is showing signs that
fundamentals are becoming more important--a very good thing for our style of
investing. We will continue to focus on individual stock selection,
concentrating on underfollowed and misunderstood companies that we believe can
offer superior earnings growth.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO
MANAGERS AS OF THE DATES SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGERS ON THE DATE THIS REPORT IS FIRST PUBLISHED OR ANY TIME
THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF EACH FUND IN
UNDERSTANDING THEIR INVESTMENTS IN THE FUND AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
18
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MICRO CAP FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
Security % of Net Assets
<S> <C>
--------------------------------------------------
Cabot Microelectronics 3.0%
CoorsTek 2.9
CSK Auto 2.9
Trimble Navigation 2.7
Metron Technology 2.6
Keithley Instrumemts 2.5
InterTan 2.5
Performance Food Group 2.4
Richardson Electronics 2.3
Semitool 2.2
-----
Total 26.0%
=====
</TABLE>
INVESTMENTS BY SECTOR
<TABLE>
<CAPTION>
Sector % of Net Assets
<S> <C>
--------------------------------------------------
Basic Industries 1.7%
Business Services 2.8
Capital Goods 0.8
Consumer Cyclicals 15.6
Consumer Staples 2.0
Energy 6.1
Health Care 9.3
Media 0.7
Technology 19.4
Technology - Semiconductors 12.8
Technology - Software 0.1
Transportation 0.8
Other 4.5
Cash Equivalents and Other Net
Assets 23.4
------
Total 100.0%
======
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR AVERAGE ANNUAL ONE YEAR AVERAGE ANNUAL
ENDED RETURN FROM ENDED RETURN FROM
MARCH 31, INCEPTION TO APRIL 30, INCEPTION TO
2000 MARCH 31, 2000(1) 2000 APRIL 30, 2000(1)
--------- ----------------- --------- -----------------
<S> <C> <C> <C> <C>
Schroder Micro Cap Fund--Investor Shares......... 148.11% 89.94% 145.36% 92.86%
</TABLE>
(1)From commencement of operations (October 15, 1997.)
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH
WILL FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
--------------------------------------------------------------------------------
19
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<C> <S> <C>
COMMON STOCKS - 85.3%
AUSTRALIA - 1.1%
19,700 Brambles Industries $ 554,066
44,300 Broken Hill Proprietary 476,665
8,300 Commonwealth Bank of Australia 126,309
22,000 Lend Lease 238,208
------------
1,395,248
------------
CANADA - 2.3%
81,330 Abitibi Consolidated 919,427
30,620 Canadian Pacific 711,945
54,600 Toronto Dominion Bank 1,262,132
------------
2,893,504
------------
FINLAND - 0.7%
83,713 Stora Enso Oyj 865,818
------------
FRANCE - 13.0%
15,151 Alcatel 3,520,621
9,357 AXA 1,390,684
7,674 Cap Gemini 1,510,474
12,103 Equant (1) 939,108
50,782 Sanofi-Synthelabo 1,899,594
25,183 Total Fina 3,830,025
30,963 Vivendi 3,069,798
------------
16,160,304
------------
GERMANY - 8.4%
24,954 BASF 1,093,535
52,334 Deutsche Bank 3,524,246
14,479 Karstadt 441,999
3,604 Munchener Ruckversicherungs 1,059,137
11,724 Siemens 1,741,411
128,000 Viag 2,503,096
------------
10,363,424
------------
HONG KONG - 0.1%
4,000 Hutchison Whampoa 58,031
------------
IRELAND - 0.6%
101,147 Bank of Ireland 683,903
------------
ITALY - 0.6%
160,253 ENI 798,788
------------
JAPAN - 19.2%
48,000 Bridgestone 1,041,532
60,000 Dai-Dan 232,624
251 East Japan Railway 1,486,422
41,000 Fuji Photo Film 1,642,708
42,000 Fujitsu 1,189,212
51,000 Kuraray 419,056
52,000 Matsushita Electric Industrial 1,376,125
217,000 Mitsui & Company 1,608,351
<CAPTION>
SHARES VALUE
---------- ------------
<C> <S> <C>
JAPAN (CONTINUED)
2,000 Murata Manufacturing $ 388,631
144,000 Nippon Express 908,731
170 Nippon Telegraph & Telephone 2,107,862
112,000 Oji Paper 702,645
43,000 Omron 1,169,780
13,300 Promise 1,076,833
181,000 Sakura Bank 1,269,510
21,000 Sekisui House 192,373
7,600 Sony 878,631
82,000 Sumitomo Electric Industries 1,091,850
1,126,000 Sumitomo Metal Industries (1) 729,331
12,000 Takeda Chemical Industries 789,477
9,000 TDK 1,205,035
74,000 Toppan Printing 773,746
13,000 Yamanouchi Pharmaceutical 686,860
212,000 Yasuda Fire & Marine Insurance 857,247
------------
23,824,572
------------
MEXICO - 0.7%
11,100 Fomento Economico Mexicano ADR 457,875
6,660 Grupo Televisa GDS (1) 422,494
------------
880,369
------------
NETHERLANDS - 7.1%
1,000 Heineken 55,586
58,205 ING Groep 3,183,421
56,516 Royal Dutch Petroleum 3,265,115
31,045 TNT Post Group 678,955
70,130 Wolters Kluwer 1,659,000
------------
8,842,077
------------
NEW ZEALAND - 0.2%
215,000 Carter Holt Harvey 181,889
------------
PORTUGAL - 0.3%
22,526 Jeronimo Martins SGPS 402,736
------------
SINGAPORE - 1.0%
13,957 DBS Group Holdings (1) 192,095
120,000 DBS Land 170,079
45,895 Singapore Press Holdings 897,773
1,560 United Overseas Bank 10,872
------------
1,270,819
------------
SOUTH AFRICA - 0.3%
56,500 Sappi 395,876
------------
SPAIN - 4.9%
185,940 Endesa 4,066,510
90,008 Telefonica 2,007,846
------------
6,074,356
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
20
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<C> <S> <C>
SWEDEN - 4.0%
55,224 Telefonaktiebolaget LM Ericsson "B"
Shares $ 4,916,224
------------
SWITZERLAND - 6.8%
3,671 Novartis 5,140,115
104 Roche Holding 1,088,676
8,887 UBS 2,182,396
------------
8,411,187
------------
TAIWAN - 1.2%
26,500 Acer GDR 281,563
83,490 China Steel 1,184,514
------------
1,466,077
------------
UNITED KINGDOM - 12.8%
70,040 Airtours 370,443
70,550 ARM Holdings (1) 717,579
89,480 Blue Circle Industries 603,479
11,000 Celltech Group (1) 182,456
76,720 Electrocomponents 774,332
57,370 Future Network (1) 679,579
60,470 Glaxo Wellcome 1,878,276
48,000 Great Universal Stores 292,180
41,000 Hays 284,856
242,220 Kingfisher 1,989,887
223,670 LASMO 377,999
317,620 Legal & General Group 834,980
200,140 Rolls-Royce 767,289
1,314,586 Vodafone AirTouch 6,047,772
------------
15,801,107
------------
Total Common Stocks
(cost $97,836,801) 105,686,309
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------
<C> <S> <C>
CORPORATE BONDS - 2.2%
UNITED KINGDOM - 2.2%
$2,392,000 Abbey National Treasury Services, 3.86%,
07/17/2000 $ 2,179,712
640,000 Alliance & Leicester Group Treasury,
3.99%, 08/02/2000 583,200
------------
2,762,912
------------
Total Corporate Bonds
(cost $2,869,104) 2,762,912
------------
<CAPTION>
SHARES
----------
<C> <S> <C>
SHORT-TERM INVESTMENTS - 11.6%
5,256,214 SSgA Money Market Fund 5.766% (2) 5,256,214
9,078,647 SSgA U.S. Government Money Market Fund
5.677% (2) 9,078,647
------------
</TABLE>
<TABLE>
<S> <C>
Total Short-Term Investments
(cost $14,334,861) 14,334,861
------------
Total Investments
(cost $115,040,766) - 99.1% 122,784,082
Other Assets Less Liabilities - 0.9% 1,118,458
------------
Total Net Assets - 100% $123,902,540
============
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
ADR - American Depository Receipts
GDS - Global Depositary Shares
FORWARD FOREIGN CURRENCY CONTRACTS
CONTRACTS TO SELL
<TABLE>
<CAPTION>
UNDERLYING UNREALIZED
FACE AMOUNT APPRECIATION
CONTRACT DATE CURRENCY UNITS OF VALUE (DEPRECIATION)
------------- -------- ----- ----------- --------------
<S> <C> <C> <C> <C>
5/18/00 Japanese Yen 549,882,000 $ 5,105,683 $ (541)
5/18/00 Japanese Yen 23,264,000 216,550 520
5/18/00 Japanese Yen 79,085,000 735,914 1,528
5/18/00 Japanese Yen 51,175,000 469,633 (5,580)
5/26/00 Japanese Yen 537,373,000 4,907,875 (89,300)
5/26/00 Japanese Yen 307,775,000 2,891,535 29,454
6/07/00 Japanese Yen 327,331,000 3,103,840 53,232
------------ ----------
$ 17,431,030 $ (10,687)
============ ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
21
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS - 84.2%
ARGENTINA - 0.8%
3,500 Banco De Galicia Y Buenos Aires $ 60,594
4,200 Nortel Inversora ADR 77,700
2,300 Telecom Argentina Stet - France Telecom
ADR 64,256
-----------
202,550
-----------
BRAZIL - 5.9%
3,900 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar 111,150
6,000 Companhia Cervejaria Brahma ADR 93,000
8,900 Companhia Vale do Rio Doce 197,290
17,000 Confeccoes Guararapes 53,654
8,600 Embratel Participacoes ADR 193,500
9,200 Petroleo Brasileiro ADR 217,961
3,100 Tele Centro Sul Participacoes ADR 197,625
10,054 Tele Norte Leste Participacoes ADR 179,084
4,700 Telecomunicacoes de Sao Paulo ADR 118,675
2,200 Telesp Celular Participacoes ADR 97,075
-----------
1,459,014
-----------
CHILE - 0.5%
5,200 CIA de Telecomunicaciones de Chile ADR 96,200
2,200 Enersis ADR 40,975
-----------
137,175
-----------
CHINA - 1.0%
590,000 Nanjing Panda Electronics (1) 244,287
-----------
CZECH REPUBLIC - 0.1%
1,800 Cesky Telecom GDR (1) 33,315
-----------
EGYPT - 0.2%
1,350 Egyptian Company for Mobile Services
(MobilNil) (1) 51,467
-----------
GREECE - 0.8%
8,636 Hellenic Telecommunications Organization 194,865
-----------
HONG KONG - 3.0%
5,000 AsiaInfo Holdings (1) 217,500
24,000 China Telecom (Hong Kong) (1) 171,781
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
HONG KONG (CONTINUED)
262,000 Founder Holdings (1) $ 150,995
60,000 Legend Holdings 69,329
70,000 Pacific Century CyberWorks (1) 130,312
-----------
739,917
-----------
HUNGARY - 1.5%
2,200 BorsodChem Rt. GDR 81,070
3,740 Matav Rt. ADR 130,199
2,250 OTP Bank Rt. GDR 100,069
950 Richter Gedeon GDR 52,725
-----------
364,063
-----------
INDIA - 5.3%
13,600 Mahanagar Telephone Nigam 177,650
26,700 Pentamedia Graphics GDR (1) 546,637
3,500 Ranbaxy Laboratories GDR 66,763
27,700 Videsh Sanchar Nigam GDR 526,300
-----------
1,317,350
-----------
ISRAEL - 5.5%
1,530 Check Point Software Technologies (1) 264,690
1,800 Comverse Technology (1) 160,538
2,060 ECI Telecom 57,294
5,500 Galileo Technology (1) 96,594
1,600 Gilat Satellite Networks (1) 137,400
4,200 Matav-Cable Systems Media 90,735
3,000 Nice Systems (1) 196,312
1,700 Orbotech (1) 144,925
15,720 Partner Communications (1) 168,007
1,400 Teva Pharmaceutical Industries 61,600
-----------
1,378,095
-----------
KOREA - 14.0%
4,000 Haansoft 70,649
3,100 Korea Electric Power 90,789
2,500 Korea Telecom 170,765
800 LG Home Shopping 63,728
950 Locus (1) 115,570
6,521 Medidas 95,784
30,000 Samsung 340,628
8,100 Samsung Electronics 2,189,752
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
22
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
KOREA (CONTINUED)
5,000 SEROME Technology $ 147,335
19,990 Shinhan Bank 191,845
-----------
3,476,845
-----------
MALAYSIA - 3.9%
28,000 AMMB Holdings 106,108
28,000 Genting 112,739
150,000 IOI 110,529
30,000 Resorts World 97,108
80,000 Technology Resources Industries 102,318
26,000 Telekom Malaysia 90,318
69,000 Tenaga Nasiona 228,795
47,000 United Engineers (Malaysia) 121,213
-----------
969,128
-----------
MEXICO - 8.4%
84,000 Carso Global Telecom (1) 223,091
30,300 Cemex 131,169
70,500 Consorico Ara (1) 87,327
46,100 Fomento Economico Mexico 182,427
56,000 Grupo Financiero Banamex Accival (1) 202,269
240,000 Grupo Financiero Bancomer (1) 107,084
4,300 Grupo Televisa GDS (1) 272,781
12,500 Telefonos de Mexico ADR 735,156
65,000 Wal-Mart De Mexico (1) 138,449
-----------
2,079,753
-----------
PERU - 0.3%
7,500 Credicorp 79,219
-----------
PHILIPPINES - 0.6%
8,500 Philippine Long Distance Telephone 152,360
-----------
POLAND - 0.4%
2,500 Elektrim Towarz (1) 31,314
3,400 KGHM Polska Miedz GDR 49,640
3,760 Telekomunikacja Polska GDR 28,858
-----------
109,812
-----------
RUSSIA - 2.2%
4,980 LUKoil ADR 300,194
13,500 OAO Gazprom 89,438
10,960 Surgutneftegaz 166,318
-----------
555,950
-----------
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
SOUTH AFRICA - 4.8%
80,000 African Bank Investments (1) $ 176,113
45,500 Dimension Data Holdings 298,668
15,500 Johnnies Industrial 228,638
279,100 Malbak 127,626
25,000 Sappi 175,166
30,500 Sasol 179,061
-----------
1,185,272
-----------
TAIWAN - 18.4%
51,000 Advantech (1) 413,069
43,000 Askey Computer (1) 98,303
52,000 Cosmo Electronics (1) 305,687
4,000 GigaMedia (1) 96,000
26,000 Hitron Technology 166,430
87,000 Macronix International 262,822
287,000 Polaris Securities 344,930
62,000 Siward Crystal Technology (1) 321,951
37,000 Sunplus Technology (1) 235,634
41,000 Systex 178,758
118,000 Taiwan Semiconductor Manufacturing 759,188
227,000 United Microelectronics 767,303
24,000 Via Technologies 399,744
80,000 Yuanta Securities 125,149
33,000 Zyxel Communications (1) 111,007
-----------
4,585,975
-----------
THAILAND - 1.5%
7,000 Advanced Info Service (1) 81,977
4,500 Siam Cement 103,981
172,368 TelecomAsia (1) 175,429
20,000 Thai Farmers Bank (1) 21,006
-----------
382,393
-----------
TURKEY - 4.2%
4,000,000 Aksigorta 106,419
5,000,000 Dogan Yayin Holding 120,745
2,100,000 Erciyas Biracilik ve Malt Sanayii 156,437
142,000 Migros Turk T.A.S. 96,482
9,400,000 Turkiye Garanti Bankasi 158,516
1,150,000 Turkiye Is Bankasi (Isbank) 63,074
10,500,000 Yapi ve Kredi Bankasi 335,221
-----------
1,036,894
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
23
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
ZIMBABWE - 0.9%
619,000 Econet Wireless Holdings (1) $ 226,273
-----------
Total Common Stocks
(cost $21,753,109) 20,961,972
-----------
PREFERRED STOCK - 2.3%
BRAZIL - 0.9%
16,058,525 Banco Bradesco 117,472
400,000 Banco Itau 29,926
1,460,000 Eletropaulo Metropolitana - Electricidad
de Sao Paulo 84,148
-----------
231,546
-----------
KOREA - 1.4%
2,470 Samsung Electronics 331,644
-----------
Total Preferred Stock
(cost $540,670) 563,190
-----------
SHORT-TERM INVESTMENTS - 9.1%
1,127,394 SSgA Money Market Fund 5.766%(2) 1,127,394
1,127,394 SSgA U.S. Government Money Market Fund
5.677%(2) 1,127,394
-----------
Total Short-Term Investments
(cost $2,254,788) 2,254,788
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
REPURCHASE AGREEMENT - 8.1%
$2,030,000 State Street Bank and Trust Company
4.75% 05/01/2000 (3)
(cost $2,030,000) $ 2,030,000
-----------
</TABLE>
<TABLE>
<S> <C>
Total Investments - 103.7%
(cost $26,578,567) 25,809,950
Liabilities in Excess of Other Assets -
(3.7%) (917,297)
-----------
Total Net Assets - 100% $24,892,653
===========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
(3) The repurchase agreement, dated 4/28/00 with a repurchase price of
$2,030,804 is collateralized by a $1,850,000 United States Treasury Bond,
9.125%, due 5/15/09, valued at $2,073,944.
ADR - American Depository Receipts
GDR - Global Depositary Receipts
GDS - Global Depositary Shares
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
24
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
COMMON STOCKS - 91.4%
FINLAND - 2.2%
14,700 Comptel Oyj $ 333,009
-----------
FRANCE - 13.0%
650 ALTEN (1) 90,624
2,400 Coflexip ADR 121,800
5,850 Genesys (1) 285,199
2,310 GFI Informatique 338,903
2,300 Group R2I Sante 92,659
1,700 HF 185,121
8,000 Infogrames Entertainment (1) 226,719
1,600 Manitou B.F. 128,304
3,200 Montupet 85,730
7,200 Societe Pour L' Informatique (1) 306,005
4,000 Sys-Com (1) 111,355
-----------
1,972,419
-----------
GERMANY - 8.0%
325 ADVA AG Optical Networking (1) 178,878
2,333 Das Werk 93,542
2,600 Fantastic (1) 47,859
2,250 PrimaCom (1) 175,302
3,090 Rhon-Klinikum 114,179
4,155 Roesch Medizintechnik (1) 256,707
2,300 Telegate 291,327
2,500 WWL Internet (1) 54,903
-----------
1,212,697
-----------
HONG KONG - 2.3%
80,000 Legend Holdings 92,438
38,000 Quality Healthcare Asia (1) 15,612
23,000 Sunday Communications (1) 4,902
480,000 Tan Chong International 77,032
168,000 TCL International Holdings 101,374
26,000 Varitronix International 59,250
-----------
350,608
-----------
IRELAND - 2.7%
45,750 Fyffes 77,126
7,000 SmartForce ADR (1) 334,250
-----------
411,376
-----------
ITALY - 2.8%
11,500 Class Editori 157,191
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
ITALY (CONTINUED)
35,500 De Rigo ADR $ 186,375
11,400 Gewiss 74,276
-----------
417,842
-----------
JAPAN - 19.3%
11,000 Airport Facilties 42,241
10,000 Amada 91,051
10,000 ARC Land Sakamoto 122,141
6,000 Charle 37,753
1 Crayfish (1) 68,473
1 Cyberagent (1) 92,069
15,000 Diamond City 48,579
19,000 Eiden 162,096
11,600 EXEDY 91,450
1,000 Fujitsu Devices 29,610
9,500 Idec Izumi 151,196
6,000 Inaba Denkisangyo 59,239
12,000 Japan Airport Terminal 98,934
5,200 Koha 197,277
1,900 Kosaido 17,616
9,000 Mandom 137,409
5,000 Meiko Shokai 78,652
2 Mobilephone Telecommunications
International (1) 39,603
16,000 Nippon Thompson 165,964
18,000 Nissan Fire & Marine Insurance 47,135
35,000 Rengo 200,793
500 Ryohin Keikaku 92,763
19,000 Sanken Electric 118,671
4,000 Sanyo Chemical Industries 36,605
35,000 Sumitomo Warehouse 90,033
4,000 Tachihi Enterprise 85,869
2,400 TKC 53,631
12,000 Toho Real Estate 41,639
5,800 Torii Pharmaceutical 126,657
3,500 Trusco Nakayama 38,831
12,500 Tsubaki Nakashima 156,378
1,500 United Arrows 77,726
7,000 Yushiro Chemical Industry 27,852
-----------
2,925,936
-----------
LUXEMBOURG - 1.0%
2,600 SBS Broadcasting (1) 143,000
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
25
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
NETHERLANDS - 4.6%
4,000 Apothekers Cooperatie OPG $ 97,322
9,100 Be Semiconductor Industries (1) 184,920
2,804 Devote 112,426
4,368 Ordina Beheer 159,214
500 Qiagen (1) 71,533
3,400 Seagull Holding (1) 76,217
-----------
701,632
-----------
SINGAPORE - 3.6%
109,000 Lindeteves-Jacoberg 100,865
83,000 Sembcorp Industries 87,499
52,000 Singapore Computer Systems 115,729
7,000 Venture Manufacturing (Singapore) 81,994
60,000 WBL 84,337
98,000 Wing Tai Holdings 80,354
-----------
550,778
-----------
SPAIN - 4.2%
15,384 NH Hoteles (1) 173,131
10,000 Prosegur, CIA de Seguridad 118,280
2,900 Sogecable (1) 119,975
27,300 TelePizza (1) 221,158
-----------
632,544
-----------
SWEDEN - 3.4%
7,800 OM Gruppen 324,103
3,100 Resco 93,491
8,800 Scandic Hotels 93,380
-----------
510,974
-----------
SWITZERLAND - 2.8%
4 Lindt & Spruengli 102,297
290 Selecta Group 89,336
247 SEZ Holding 228,986
-----------
420,619
-----------
UNITED KINGDOM - 21.5%
20,000 Allied Leisure 39,746
50,000 Amstrad 156,480
70,000 Arriva 217,977
100,000 Booker (1) 198,730
100,500 British Regional Airlines Group 74,700
25,000 Fairey Group 160,588
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
14,550 Galen Holdings $ 140,705
4,118 Interx 103,746
90,000 John David Sports 190,123
5,650 JSB Software Technologies (1) 143,668
75,000 Low & Bonar 151,394
60,000 Meconic 174,632
20,000 Microgen 125,184
15,000 Minorplanet Systems (1) 113,252
28,000 Parity Group 153,789
25,000 Penna Holdings 173,889
60,000 Photo-Me International 144,588
80,000 Planit Holdings 137,702
20,000 Renishaw 168,998
33,000 Rosebys 204,488
14,500 Scipher (1) 111,179
16,700 VEGA Group 180,312
-----------
3,265,870
-----------
Total Common Stocks
(cost $11,426,335) 13,849,304
-----------
PREFERRED STOCK - 2.2%
GERMANY - 2.2%
640 Marschollek, Lautenschlaeger und Partner
(cost $61,750) 340,852
-----------
SHORT-TERM INVESTMENTS - 5.3%
18,563 SSgA Money Market Fund, 5.766% (2) 18,563
778,818 SSgA U.S. Government Money Market Fund,
5.677% (2) 778,818
-----------
</TABLE>
<TABLE>
<S> <C>
Total Short-Term Investments
(cost $797,381) 797,381
-----------
Total Investments
(cost $12,285,466) - 98.9% 14,987,537
Other Assets Less Liabilities - 1.1% 172,616
-----------
Total Net Assets - 100% $15,160,153
===========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
ADR - American Depository Receipts
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
26
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS
CONTRACTS TO SELL
<TABLE>
<CAPTION>
UNDERLYING UNREALIZED
FACE AMOUNT APPRECIATION
CONTRACT DATE CURRENCY UNITS OF VALUE (DEPRECIATION)
------------- -------- ----- ----------- --------------
<S> <C> <C> <C> <C>
5/18/00 Japanese Yen 28,436,220 $ 264,032 $ (28)
5/18/00 Japanese Yen 24,190,000 221,992 (2,637)
5/18/00 Japanese Yen 10,997,000 102,364 246
5/18/00 Japanese Yen 37,383,000 347,862 722
5/26/00 Japanese Yen 24,713,000 225,706 (4,107)
5/26/00 Japanese Yen 64,720,000 608,042 6,194
6/07/00 Japanese Yen 40,095,000 380,192 6,520
----------- --------
$ 2,150,190 $ 6,910
=========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
27
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<C> <S> <C>
COMMON STOCKS - 97.4%
BASIC MATERIALS - 5.5%
3,900 Avery Dennison $ 255,937
4,200 Sealed Air (1) 233,625
3,400 Weyerhaeuser 181,688
5,300 Willamette Industries 202,394
-----------
873,644
-----------
CAPITAL GOODS - 6.1%
9,900 American Power Conversion (1) 349,594
4,700 Danaher 268,487
5,400 Dover 274,387
1,194 Illinois Tool Works 76,491
-----------
968,959
-----------
COMPUTER SOFTWARE - 9.8%
3,700 DST Systems (1) 274,494
3,800 Network Solutions Class A (1) 562,400
11,600 Novell (1) 227,650
3,600 VeriSign (1) 501,750
-----------
1,566,294
-----------
CONSUMER CYCLICALS - 21.8%
5,400 Circuit City Stores-Circuit City Group 317,587
9,200 Dollar General 210,450
3,800 Dow Jones & Company 246,525
11,500 Family Dollar Stores 219,219
7,800 Harley-Davidson 310,537
8,100 Harrahs Entertainment (1) 166,556
5,300 Hertz Class A 165,294
6,750 Infinity Broadcasting (1) 229,078
7,000 Jones Apparel Group (1) 207,813
3,700 Knight-Ridder 181,531
5,600 New York Times Class A 230,650
16,200 Park Place Entertainment (1) 207,563
4,000 Tiffany & Company 290,750
3,400 Whirlpool 221,425
4,900 Young & Rubicam 272,869
-----------
3,477,847
-----------
CONSUMER STAPLES - 1.0%
10,400 Hormel Foods 158,600
-----------
<CAPTION>
SHARES VALUE
------- -----------
<C> <S> <C>
ENERGY - 9.4%
6,900 Dynegy Class A $ 451,519
11,100 EOG Resources 276,113
10,300 Imperial Oil 242,050
4,200 Kerr-McGee 217,350
3,900 Vastar Resources 314,437
-----------
1,501,469
-----------
FINANCIAL SERVICES - 5.1%
4,000 Allmerica Financial 216,500
4,500 Capital One Financial 196,875
4,000 MGIC Investment 191,250
2,200 Old Kent Financial 66,275
5,300 UnionBanCal 146,744
-----------
817,644
-----------
TECHNOLOGY - 29.0%
8,200 Analog Devices (1) 629,862
15,500 ARM Holdings ADR (1) 492,125
12,600 Atmel (1) 616,612
7,600 Celestica (1) 414,675
8,600 Concord EFS (1) 192,425
7,600 Fiserv (1) 349,125
3,000 Lexmark International Group (1) 354,000
8,850 Symbol Technologies 493,388
6,000 Teradyne (1) 660,000
4,400 Waters (1) 416,900
-----------
4,619,112
-----------
TELECOMMUNICATIONS - 4.6%
9,600 ADC Telecommunications (1) 583,200
2,600 United States Cellular (1) 156,163
-----------
739,363
-----------
TRANSPORTATION - 5.1%
7,800 Canadian National Railway 218,887
9,900 Canadian Pacific 235,744
5,000 Kansas City Southern Industries 359,375
-----------
814,006
-----------
Total Common Stocks
(cost $11,718,690) 15,536,938
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
28
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS - 3.1%
501,587 SSgA U.S. Government Money Market Fund
5.677% (2)
(cost $501,587) $ 501,587
-----------
</TABLE>
<TABLE>
<S> <C>
Total Investments
(cost $12,220,277) - 100.5% 16,038,525
Liabilities in Excess of Other Assets -
(0.5%) (78,146)
-----------
Total Net Assets - 100% $15,960,379
===========
</TABLE>
------------------
(a) Denotes non-income producing security.
(b) Interest rate shown is 7-day yield as of April 30, 2000.
ADR - American Depository Receipts.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
29
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
COMMON STOCKS - 91.2%
BASIC INDUSTRIES - 1.0%
7,500 Cabot $ 202,500
8,556 Cambrex 350,796
-----------
553,296
-----------
BUSINESS SERVICES - 1.0%
12,217 ACNielson (1) 281,754
15,040 RemedyTemp Class A (1) 297,980
-----------
579,734
-----------
CAPITAL GOODS - 4.1%
13,900 Mettler-Toledo International (1) 479,550
14,028 Mueller Industries (1) 462,047
6,000 Pentair 229,500
2,100 Plexus (1) 160,912
5,985 SPX (1) 657,602
15,100 Tetra Tech (1) 355,794
-----------
2,345,405
-----------
CONSUMER CYCLICALS - 13.4%
17,490 Ames Department Stores (1) 313,727
11,300 AnnTaylor Stores (1) 233,769
20,839 CEC Entertainment (1) 625,170
27,594 Family Dollar Stores 526,011
35,908 Hollywood Entertainment (1) 251,356
15,300 International Game Technology 372,938
32,343 Jack in The Box (1) 792,403
11,900 Linens 'n Things (1) 367,413
10,215 Regis 119,388
30,592 Rent-A-Center (1) 623,312
31,556 Rent-Way (1) 818,484
12,455 Ruby Tuesday 260,777
10,835 School Specialty (1) 201,802
32,405 ShopKo Stores (1) 579,239
15,704 Valassis Communications (1) 534,917
51,500 Venator Group (1) 611,562
24,990 WestPoint Stevens 468,562
-----------
7,700,830
-----------
CONSUMER STAPLES - 0.7%
26,500 International Home Foods (1) 385,906
-----------
ENERGY - 8.6%
8,280 BJ Services (1) 581,670
3,700 Cal Dive International (1) 184,075
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
ENERGY (CONTINUED)
10,386 Cooper Cameron (1) $ 778,950
15,400 Core Laboratories (1) 436,975
167,000 Grey Wolf (1) 678,438
15,469 Hanover Compressor (1) 901,069
18,800 Ocean Energy (1) 243,225
28,600 Pride International (1) 647,075
11,314 Weatherford International 459,631
-----------
4,911,108
-----------
FINANCIALS - 5.6%
13,020 Affiliated Managers Group (1) 522,428
31,600 AmeriCredit (1) 590,525
16,978 AmerUs Life Holdings 338,499
17,837 Bank United 591,965
6,898 Cullen/Frost Bankers 170,294
10,600 Federated Investors 299,450
36,918 Heller Financial 717,594
-----------
3,230,755
-----------
HEALTH CARE - 15.7%
39,275 Apria Healthcare Group (1) 547,395
8,700 Beckman Coulter 563,869
13,400 C. R. Bard 583,737
32,400 Dendrite International (1) 741,150
800 Dentsply International 23,250
55,100 Edwards Lifesciences (1) 826,500
22,691 Invacare 606,984
212,000 Laboratory Corporation of America
Holdings (1) 1,258,750
21,200 Lincare Holdings (1) 646,600
23,000 Mentor 406,813
11,893 Quest Diagnostics (1) 692,024
30,739 Sybron International (1) 956,751
14,200 Triad Hospitals (1) 244,063
16,200 Universal Health Services (1) 886,950
-----------
8,984,836
-----------
MEDIA - 3.0%
4,500 Catalina Marketing (1) 455,625
2,090 Cox Radio Class A (1) 151,525
14,600 Emmis Communications (1) 620,500
11,633 True North Communications 479,134
-----------
1,706,784
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
30
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
TECHNOLOGY - 15.4%
11,200 ACT Manufacturing (1) $ 407,400
17,600 Affiliated Computer Services (1) 583,000
14,600 Amphenol (1) 930,750
15,900 CommScope (1) 755,250
9,796 CTS 617,760
20,800 DDi (1) 312,000
12,300 Harris 397,444
12,800 In Focus Systems (1) 383,200
3,800 KEMET (1) 283,100
1,900 Kent Electronics (1) 55,456
14,000 Litton Industries (1) 608,125
25,227 NOVA (1) 797,804
14,943 PerkinElmer 818,129
6,700 Technitrol 455,600
10,500 Tektronix 607,688
22,300 Thomas & Betts 687,119
2,800 Zomax (1) 132,475
-----------
8,832,300
-----------
TECHNOLOGY-CELLULAR/
TELECOMMUNICATIONS - 3.0%
11,700 Choice One Communications 374,400
12,200 Dobson Communications Class A (1) 312,625
13,900 ITC DeltaCom (1) 456,962
12,000 Pac-West Telecomm (1) 256,500
6,058 Pinnacle Holdings (1) 340,384
-----------
1,740,871
-----------
TECHNOLOGY-SEMICONDUCTORS - 11.8%
4,800 Advanced Energy Industries (1) 331,200
7,100 Applied Science & Technology (1) 193,031
10,600 Cohu 403,463
10,600 Cymer (1) 414,063
8,300 DuPont Photomasks (1) 465,319
13,500 Fairchild Semiconductor (1) 641,250
17,500 General Semiconductor (1) 350,000
20,200 Integrated Device Technology (1) 970,862
9,400 Kulicke and Soffa Industries (1) 736,137
6,400 Lattice Semiconductor (1) 431,200
25,000 Oak Technology (1) 351,563
13,900 Pericom Semiconductor (1) 610,731
4,100 Therma-Wave (1) 112,750
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
TECHNOLOGY-SEMICONDUCTORS (CONTINUED)
11,000 Varian Semiconductor Equipment
Associates (1) $ 739,750
-----------
6,751,319
-----------
TECHNOLOGY-SOFTWARE - 4.5%
11,400 Pinnacle Systems (1) 273,600
20,500 Progress Software (1) 410,000
2,526 Remedy (1) 134,194
27,300 Sybase (1) 551,119
14,100 Symantec (1) 880,369
12,100 Unigraphics Solutions (1) 325,187
-----------
2,574,469
-----------
TRANSPORTATION - 0.3%
14,670 Mesaba Holdings (1) 183,375
-----------
UTILITIES - 3.1%
6,400 Avista 189,200
28,407 El Paso Electric (1) 314,252
19,400 Kinder Morgan 588,063
15,004 Montana Power 661,114
-----------
1,752,629
-----------
Total Common Stocks
(cost $42,841,735) 52,233,617
-----------
SHORT-TERM INVESTMENTS - 7.0%
2,570,436 SSgA Money Market Fund 5.766% (2) 2,570,436
1,459,845 SSgA U.S. Government Money Market Fund
5.677% (2) 1,459,845
-----------
Total Short-Term Investments
(cost $4,030,281) 4,030,281
-----------
</TABLE>
<TABLE>
<S> <C>
Total Investments
(cost $46,872,016) - 98.2% 56,263,898
Other Assets Less Liabilities - 1.8% 1,045,178
-----------
Total Net Assets - 100% $57,309,076
===========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
31
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MICRO CAP FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
COMMON STOCKS - 72.1%
BASIC INDUSTRIES - 1.7%
50,000 NCI Building Systems (1) $ 956,250
-----------
BUSINESS SERVICES - 2.8%
80,000 APAC Customer Services (1) 760,000
20,900 Career Education (1) 790,281
-----------
1,550,281
-----------
CAPITAL GOODS - 0.8%
10,600 Nortek (1) 219,950
50,000 ROHN Industries (1) 190,625
-----------
410,575
-----------
CONSUMER CYCLICALS - 15.6%
45,000 Braun's Fashions (1) 1,029,375
2,500 CACI International (1) 56,250
150,000 CSK Auto (1) 1,575,000
23,500 Deb Shops 326,063
55,000 Fred's 866,250
10,000 Hot Topic (1) 306,563
100,000 InterTan (1) 1,381,250
25,000 Isle of Capri Casinos (1) 346,875
35,000 O'Charley's (1) 444,062
50,000 Performance Food Group (1) 1,318,750
90,000 Shoe Carnival (1) 877,500
-----------
8,527,938
-----------
CONSUMER STAPLES - 2.0%
45,000 American Italian Pasta (1) 1,113,750
-----------
ENERGY - 6.1%
100,000 Denbury Resources (1) 387,500
10,000 Gulf Island Fabrication (1) 151,250
15,000 Horizon Offshore (1) 127,500
34,900 Key Production (1) 460,244
12,500 Midcoast Energy Resources 198,437
35,000 Oceaneering International (1) 603,750
30,000 Patina Oil & Gas (2) 588,125
50,000 Superior Energy Services (1) 462,500
30,000 Unit (1) 335,625
-----------
3,314,931
-----------
HEALTH CARE - 9.3%
46,000 DIANON Systems (1) 828,000
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
HEALTH CARE (CONTINUED)
70,100 Embrex (1) $ 1,152,269
29,000 Exactech (1) 398,750
30,000 Lark Technologies (1) 75,938
17,500 LifePoint Hospitals (1) 299,687
66,700 North American Scientific (1) 1,117,225
68,600 Owens & Minor 823,200
70,000 TriPath Imaging (1) 420,000
-----------
5,115,069
-----------
MEDIA - 0.7%
20,000 Saga Communications (1) 405,000
-----------
TECHNOLOGY - 19.4%
55,000 Bell Microproducts (1) 852,500
20,000 Brooktrout (1) 540,000
35,000 CoorsTek (1) 1,577,187
5,000 IKOS Systems (1) 55,000
3,000 ITI Technologies (1) 77,063
30,000 Jaco Electronics (1) 483,750
25,000 Keithley Instruments 1,393,750
40,000 Media 100 (1) 967,500
34,000 Nu Horizons Electronics 603,920
50,000 Quintus (1) 501,875
100,000 Richardson Electronics 1,268,750
20,000 Rimage (1) 375,000
10,000 ScanSource (1) 345,000
5,000 THQ (1) 76,563
54,500 Trimble Navigation (1) 1,505,562
-----------
10,623,420
-----------
TECHNOLOGY-SEMICONDUCTORS - 12.8%
50,000 Cabot Microelectronics (1) 1,625,000
141,000 Catalyst Semiconductor (1) 1,075,125
5,000 Integrated Measurment Systems 85,000
5,000 Integrated Silicon Solution (1) 152,813
68,500 Metron Technology (1) 1,429,937
40,000 Pioneer-Standard Electronics 612,500
41,000 PSi Technologies Holdings (1) 676,500
10,000 Robotic Vision Systems (1) 149,375
60,000 Semitool (1) 1,202,812
-----------
7,009,062
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
32
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MICRO CAP FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
TECHNOLOGY-SOFTWARE - 0.1%
5,000 Objective Systems Integrators (1) $ 71,250
-----------
TRANSPORTATION - 0.8%
32,900 Mesaba Holdings (1) 411,250
-----------
Total Common Stocks (cost $35,895,256) 39,508,776
-----------
<CAPTION>
EXPIRATION/EXERCISE
CONTRACT DATE/PRICE
----------- -------------------
OPTIONS - 4.5%
<C> <S> <C>
20,000 Precision Drilling Call May 00/30 75,000
10,000 Precision Drilling Call June 00/25 82,800
20,000 Russell 2000 Index Put May 00/490 245,000
7,500 Russell 2000 Index Put May 00/500 120,000
30,000 Russell 2000 Index Put May 00/530 948,750
7,500 Russell 2000 Index Put May 00/460 42,187
7,500 Russell 2000 Index Put May 00/480 102,188
25,000 Russell 2000 Index Put June 00/500 837,500
-----------
Total Options (cost $3,745,075) 2,453,425
-----------
<CAPTION>
SHARES
-----------
<C> <S> <C>
SHORT-TERM INVESTMENTS - 9.4%
2,569,495 SSgA Money Market Fund 5.766% (3) 2,569,495
2,569,496 SSgA U.S. Government Money Market Fund
5.677% (3) 2,569,496
-----------
Total Short-Term Investments
(cost $5,138,991) 5,138,991
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
REPURCHASE AGREEMENT - 11.4%
$ 6,264,000 State Street Bank and Trust Company,
4.750%, 05/01/2000 (4)
(cost $6,264,000) $ 6,264,000
-----------
</TABLE>
<TABLE>
<S> <C>
Total Investments (cost $51,043,322) -
97.4% 53,365,192
Other Assets Less Liabilities - 2.6% 1,423,450
-----------
Total Net Assets - 100% $54,788,642
===========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Includes $171,875 for warrants to acquire 50,000 shares of the issuer at a
strike price of $12.50.
(3) Interest rate shown is 7-day yield as of April 30, 2000.
(4) The repurchase agreement, dated 4/28/00 with a repurchase price of
$6,266,480 is collateralized by a $5,865,000 United States Treasury Bond,
6.875%, due 8/15/25, valued at $6,390,322.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
33
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING
INTERNATIONAL MARKETS
FUND FUND
--------------- ------------
<S> <C> <C>
ASSETS
Investments in securities, at value--Note 2 $122,784,082 $23,779,950
Repurchase agreements 0 2,030,000
Cash 0 676
Foreign currency, at value 22,981 280,283
Dividends receivable 319,789 44,683
Interest receivable 53,032 8,146
Receivable for securities sold 390,788 250,156
Receivable for foreign currency contracts sold 0 0
Receivable for Fund shares sold 2,504,983 151,760
Deferred organizational costs 1,237 486
Prepaid expenses 5,083 19,877
Due from Investment Adviser--Note 3 10,219 6,698
------------ -----------
Total Assets 126,092,194 26,572,715
------------ -----------
LIABILITIES
Payable for securities purchased 1,043,581 1,647,699
Payable for forward foreign currency contracts
purchased 18,990 12
Payable for Fund shares redeemed 1,013,517 0
Advisory fee payable--Note 3 46,195 18,848
Administration fee payable--Note 3 23,094 4,710
Shareholder servicing fee payable--Note 4 0 0
Accrued expenses and other liabilities 44,277 8,793
------------ -----------
Total Liabilities 2,189,654 1,680,062
------------ -----------
Net Assets $123,902,540 $24,892,653
============ ===========
NET ASSETS
Capital paid-in $ 75,809,546 $24,807,242
Undistributed (distributions in excess of) net
investment income 750,664 (25,274)
Accumulated net realized gain (loss) on
investments and foreign currency transactions 39,689,460 879,086
Net unrealized appreciation (depreciation) of
investments and foreign currency transactions 7,652,870 (768,401)
------------ -----------
Net Assets $123,902,540 $24,892,653
============ ===========
INVESTOR CLASS:
Net Assets $123,902,540 $24,892,653
Net asset value, offering and redemption price
per share $ 17.76 $ 13.51
Total shares outstanding at end of period 6,976,366 1,842,026
ADVISOR CLASS:
Net Assets--Note 9 $ -- $ --
Net asset value, offering and redemption price
per share $ -- $ --
Total shares outstanding at end of period -- --
Cost of securities including repurchase agreements $115,040,766 $26,578,567
Cost of foreign currency $ 26,420 $ 281,161
</TABLE>
--------------
(1) See Note 1.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
34
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
SMALLER U.S. DIVERSIFIED U.S. SMALLER MICRO
COMPANIES GROWTH COMPANIES CAP
FUND FUND FUND FUND
----------------- ----------------- ------------- ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value--Note 2 $14,987,537 $ 16,038,525 $ 56,263,898 $ 47,101,192
Repurchase agreements 0 0 0 6,264,000
Cash 20,245 0 0 512
Foreign currency, at value 32,203 0 0 0
Dividends receivable 53,429 1,860 12,795 2,375
Interest receivable 377 2,452 23,715 24,492
Receivable for securities sold 196,930 0 1,874,285 5,285,777
Receivable for foreign currency contracts sold 7,781 0 0 0
Receivable for Fund shares sold 13,188 13,366 31,036 464,172
Deferred organizational costs 9,066 0 6,460 0
Prepaid expenses 0 112 7,362 317
Due from Investment Adviser--Note 3 6,644 2,984 20 0
----------- ------------ ------------ ------------
Total Assets 15,327,400 16,059,299 58,219,571 59,142,837
----------- ------------ ------------ ------------
LIABILITIES
Payable for securities purchased 41,541 0 826,033 4,267,924
Payable for forward foreign currency contracts
purchased 0 0 0 0
Payable for Fund shares redeemed 92,162 40,735 12,263 0
Advisory fee payable--Note 3 9,730 8,556 23,010 47,688
Administration fee payable--Note 3 3,247 0 11,505 8,387
Shareholder servicing fee payable--Note 4 0 0 595 0
Accrued expenses and other liabilities 20,567 49,629 37,089 30,196
----------- ------------ ------------ ------------
Total Liabilities 167,247 98,920 910,495 4,354,195
----------- ------------ ------------ ------------
Net Assets $15,160,153 $ 15,960,379 $ 57,309,076 $ 54,788,642
=========== ============ ============ ============
NET ASSETS
Capital paid-in $ 9,914,902 $ 10,256,518 $ 41,684,623 $ 33,424,640
Undistributed (distributions in excess of) net
investment income 8,140 (61,161) (264,491) (126,862)
Accumulated net realized gain (loss) on
investments and foreign currency transactions 2,529,411 1,946,774 6,497,062 19,168,994
Net unrealized appreciation (depreciation) of
investments and foreign currency transactions 2,707,700 3,818,248 9,391,882 2,321,870
----------- ------------ ------------ ------------
Net Assets $15,160,153 $ 15,960,379 $ 57,309,076 $ 54,788,642
=========== ============ ============ ============
INVESTOR CLASS:
Net Assets $15,160,153 $ 15,960,379 $ 50,279,109 $ 54,788,642
Net asset value, offering and redemption price
per share $ 17.52 $ 7.33 $ 16.97 $ 33.11
Total shares outstanding at end of period 865,507 2,178,773 2,962,873 1,654,830
ADVISOR CLASS:
Net Assets--Note 9 $ -- $ -- $ 7,029,967 N/A (1)
Net asset value, offering and redemption price
per share $ -- $ -- $ 16.85 N/A (1)
Total shares outstanding at end of period -- -- 417,326 N/A (1)
Cost of securities including repurchase agreements $12,285,466 $ 12,220,277 $ 46,872,016 $ 51,043,322
Cost of foreign currency $ 32,642 $ 0 $ 0 $ 0
</TABLE>
--------------
(1) See Note 1.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
35
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING
INTERNATIONAL MARKETS
FUND FUND
------------- ------------
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 811,206 $ 91,746
Interest income 199,004 38,099
Foreign taxes (107,524) (12,964)
------------ ------------
Total Income 902,686 116,881
------------ ------------
EXPENSES
Investment advisory fees--Note 3 343,100 78,666
Shareholder servicing fees--Note 4 0 0
Administrative fees--Note 3 161,555 19,667
Subadministration Fees--Note 3 72,565 7,931
Custodian fees 101,728 32,253
Audit fees 43,565 34,769
Legal fees 47,358 11,906
Printing expenses 4,984 4,984
Trustees fees--Note 5 11,561 1,097
Transfer agent fees 22,425 12,458
Organizational expenses 1,237 98
Registration fees 7,235 8,449
Other 0 0
------------ ------------
Total Expenses 817,313 212,278
Expenses borne by Investment Adviser--Note 3 (99,970) (78,544)
Expenses waived--Note 3 (9,972) 0
------------ ------------
Net Expenses 707,371 133,734
------------ ------------
Net Investment Income (Loss) 195,315 (16,853)
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments sold 39,774,007 954,329
Net realized gain (loss) on foreign currency
transactions 37,842 (17,984)
------------ ------------
Net realized gain (loss) on investments and
foreign currency transactions 39,811,849 936,345
------------ ------------
Change in net unrealized appreciation
(depreciation) on investments (17,491,645) (1,138,489)
Change in net unrealized appreciation
(depreciation) on foreign currency
transactions 464,656 6,765
------------ ------------
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency transactions (17,026,989) (1,131,724)
------------ ------------
Net Gain (Loss) 22,784,860 (195,379)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 22,980,175 $ (212,232)
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
36
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL U.S. DIVERSIFIED U.S. SMALLER MICRO
SMALLER COMPANIES GROWTH COMPANIES CAP
FUND FUND FUND FUND
----------------- ---------------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income $ 93,024 $ 44,034 $ 75,506 $ 24,420
Interest income 12,680 8,083 115,181 170,326
Foreign taxes (11,207) (953) 0 0
------------ ---------- ----------- -----------
Total Income 94,497 51,164 190,687 194,746
------------ ---------- ----------- -----------
EXPENSES
Investment advisory fees--Note 3 63,155 56,009 106,193 201,010
Shareholder servicing fees--Note 4 0 0 6,211 0
Administrative fees--Note 3 18,573 0 63,766 40,202
Subadministration Fees--Note 3 7,486 7,549 25,802 16,297
Custodian fees 22,087 19,441 41,822 27,469
Audit fees 33,985 14,326 63,386 16,270
Legal fees 13,898 15,170 24,973 17,104
Printing expenses 4,984 4,984 4,984 4,984
Trustees fees--Note 5 997 1,197 3,987 1,295
Transfer agent fees 12,458 10,764 22,424 10,764
Organizational expenses 3,022 0 2,509 0
Registration fees 6,956 8,995 8,953 9,025
Other 167 0 1,224 223
------------ ---------- ----------- -----------
Total Expenses 187,768 138,435 376,234 344,643
Expenses borne by Investment Adviser--Note 3 (68,893) (18,642) (41,717) (23,035)
Expenses waived--Note 3 (7,434) (7,468) 0 0
------------ ---------- ----------- -----------
Net Expenses 111,441 112,325 334,517 321,608
------------ ---------- ----------- -----------
Net Investment Income (Loss) (16,944) (61,161) (143,830) (126,862)
------------ ---------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments sold 2,515,361 1,946,752 8,040,393 19,024,980
Net realized gain (loss) on foreign currency
transactions 15,513 22 0 0
------------ ---------- ----------- -----------
Net realized gain (loss) on investments and
foreign currency transactions 2,530,874 1,946,774 8,040,393 19,024,980
------------ ---------- ----------- -----------
Change in net unrealized appreciation
(depreciation) on investments 1,288,445 1,205,565 6,531,247 952,783
Change in net unrealized appreciation
(depreciation) on foreign currency
transactions 31,449 0 0 0
------------ ---------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency transactions 1,319,894 1,205,565 6,531,247 952,783
------------ ---------- ----------- -----------
Net Gain (Loss) 3,850,768 3,152,339 14,571,640 19,977,763
------------ ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 3,833,824 $3,091,178 $14,427,810 $19,850,901
============ ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
37
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL FUND
----------------------------------
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment (loss) income $ 195,315 $ 858,784
Net realized gain (loss) on
investments and foreign currency 39,811,849 14,091,624
Change in net unrealized appreciation
(depreciation) on investments and
foreign currency (17,026,989) 13,193,036
------------- ------------
Net increase (decrease) in net assets
resulting from operations 22,980,175 28,143,444
------------- ------------
Dividends and Distributions to Investor
Shareholders:
From net investment income (589,679) (1,311,873)
From net realized capital gains (12,889,783) (22,931,620)
Dividends and Distributions to Advisor
Shareholders:
From net investment income 0 0
From net realized capital gains 0 (17)
------------- ------------
(13,479,462) (24,243,510)
------------- ------------
INVESTOR SHARE TRANSACTIONS:
Sales of shares 114,537,471 23,765,334
Reinvestment of distributions 12,350,145 0
Redemptions of shares (170,105,731) 0
------------- ------------
Total increase (decrease) from
Investor share transactions (43,218,115) 23,765,334
------------- ------------
ADVISOR SHARE TRANSACTIONS:
Sales of shares 0 0
Reinvestment of distributions 0 0
Redemptions of shares 0 (100)
------------- ------------
Total increase (decrease) from Advisor
share transactions 0 (100)
------------- ------------
NET ASSETS
Beginning of period 157,619,942 129,954,774
------------- ------------
End of period $ 123,902,540 $157,619,942
============= ============
Undistributed (distributions in excess
of) net investment income $ 750,664 $ 1,145,028
============= ============
OTHER INFORMATION
INVESTOR SHARE TRANSACTIONS:
Sales of shares 6,343,864 6,591,795
Reinvestment of distributions 723,076 1,232,674
Redemption of shares (9,353,501) (6,159,592)
------------- ------------
Net increase (decrease) in Investor
shares (2,286,561) 1,664,877
============= ============
ADVISOR SHARE TRANSACTIONS:
Sales of shares 0 0
Reinvestment of distributions 0 0
Redemption of shares 0 (5)
------------- ------------
Net increase (decrease) in Advisor
shares 0 (5)
============= ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
38
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EMERGING MARKETS FUND
------------------------------------------------
Six Months Ended For the Period
April 30, 2000 June 1, 1999 to Year Ended
(Unaudited) October 31, 1999 May 31, 1999
---------------- ---------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment (loss) income $ (16,853) $ (6,273) $ 5,785
Net realized gain (loss) on
investments and foreign
currency 936,345 246,833 202,377
Change in net unrealized
appreciation (depreciation) on
investments and foreign
currency (1,131,724) 128,134 237,379
------------ ----------- -----------
Net increase (decrease) in net
assets resulting from
operations (212,232) 368,694 445,541
------------ ----------- -----------
Dividends and distributions to
Investor Shareholders:
From net investment income (71,978) 0 (1,988)
From net realized capital gains (292,305) 0 0
Dividends and distributions to
Advisor Shareholders:
From net investment income 0 0 0
From net realized capital gains 0 0 0
------------ ----------- -----------
(364,283) 0 (1,988)
------------ ----------- -----------
INVESTOR SHARE TRANSACTIONS:
Sales of shares 32,440,892 3,568,272 5,729,736
Reinvestment of distributions 364,285 0 1,988
Redemptions of shares (10,498,391) (2,992,318) (3,975,370)
------------ ----------- -----------
Total increase (decrease) from
Investor share transactions 22,306,786 575,954 1,756,354
------------ ----------- -----------
NET ASSETS
Beginning of period 3,162,382 2,217,734 17,827
------------ ----------- -----------
End of period $ 24,892,653 $ 3,162,382 $ 2,217,734
============ =========== ===========
Undistributed (distributions in
excess of) net investment income $ (25,274) $ 63,557 $ 6,691
============ =========== ===========
OTHER INFORMATION
INVESTOR SHARE TRANSACTIONS:
Sales of shares 2,258,682 295,733 636,064
Reinvestment of distributions 27,064 0 233
Redemption of shares (703,348) (244,868) (429,505)
------------ ----------- -----------
Net increase (decrease) in
Investor shares 1,582,398 50,865 206,792
============ =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
39
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL SMALLER
COMPANIES FUND
----------------------------------
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment (loss) income $ (16,944) $ 37,236
Net realized gain (loss) on
investments and foreign currency 2,530,874 1,360,816
Change in net unrealized appreciation
(depreciation) on investments and
foreign currency 1,319,894 2,006,872
------------ -----------
Net increase (decrease) in net assets
resulting from operations 3,833,824 3,404,924
------------ -----------
Dividends and distributions to Investor
Shareholders:
From net investment income (5,696) (16,342)
From net realized capital gains (1,351,877) (313,960)
Dividends and distributions to Advisor
Shareholders:
From net investment income 0 0
From net realized capital gains 0 0
------------ -----------
(1,357,573) (330,302)
------------ -----------
INVESTOR SHARE TRANSACTIONS:
Sales of shares 13,238,986 3,936,628
Reinvestment of distributions 1,269,384 104,039
Redemptions of shares (11,660,418) (1,444,023)
------------ -----------
Total increase (decrease) from
Investor share transactions 2,847,952 2,596,644
------------ -----------
NET ASSETS
Beginning of period 9,835,950 4,164,684
------------ -----------
End of period $ 15,160,153 $ 9,835,950
============ ===========
Undistributed (distributions in excess
of) net investment income $ 8,140 $ 30,780
============ ===========
OTHER INFORMATION
INVESTOR SHARE TRANSACTIONS:
Sales of shares 698,504 341,062
Reinvestment of distributions 82,740 11,420
Redemption of shares (603,925) (109,607)
------------ -----------
Net increase (decrease) in Investor
shares 177,319 242,875
============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
40
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. DIVERSIFIED
GROWTH FUND
----------------------------------
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment income $ (61,161) $ (128,036)
Net realized gain (loss) on
investments and foreign currency 1,946,774 1,801,211
Change in net unrealized appreciation
(depreciation) on investments and
foreign currency 1,205,565 1,962,730
----------- -----------
Net increase (decrease) in net assets
resulting from operations 3,091,178 3,635,905
----------- -----------
Dividends and distributions to Investor
Shareholders:
From net investment income 0 0
From net realized capital gains (1,673,154) (4,808,678)
Dividends and distributions to Advisor
Shareholders:
From net investment income 0 0
From net realized capital gains 0 0
----------- -----------
(1,673,154) (4,808,678)
----------- -----------
INVESTOR SHARE TRANSACTIONS:
Sales of shares 43,014 237,273
Reinvestment of distributions 1,297,455 3,726,473
Redemptions of shares (907,978) (1,221,470)
----------- -----------
Total increase (decrease) from
Investor share transactions 432,491 2,742,276
----------- -----------
NET ASSETS
Beginning of period 14,109,864 12,540,361
----------- -----------
End of period $15,960,379 $14,109,864
=========== ===========
Undistributed (distributions in excess
of) net investment income $ (61,161) $ 0
=========== ===========
OTHER INFORMATION
INVESTOR SHARE TRANSACTIONS:
Sales of shares 6,328 50,376
Reinvestment of distributions 206,296 640,288
Redemption of shares (131,611) (202,406)
----------- -----------
Net increase (decrease) in Investor
shares 81,013 488,258
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
41
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. SMALLER COMPANIES FUND
-------------------------------------------------
Six Months Ended For the Period
April 30, 2000 June 1, 1999 to Year Ended
(Unaudited) October 31, 1999 May 31, 1999
---------------- ---------------- -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment income $ (143,830) $ (120,661) $ (380,568)
Net realized gain (loss) on
investments and foreign
currency 8,040,393 1,996,019 (5,520,499)
Change in net unrealized
appreciation (depreciation) on
investments and foreign
currency 6,531,247 (1,771,479) (3,940,525)
------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations 14,427,810 103,879 (9,841,592)
------------ ------------ ------------
Dividends and distributions to
Investor Shareholders:
From net investment income 0 0 0
From net realized capital gains 0 0 (115,656)
Dividends and distributions to
Advisor Shareholders:
From net investment income 0 0 0
From net realized capital gains 0 0 (12,796)
------------ ------------ ------------
0 0 (128,452)
------------ ------------ ------------
INVESTOR SHARE TRANSACTIONS:
Sales of shares 12,298,887 4,665,045 48,301,794
Reinvestment of distributions 0 0 114,698
Redemptions of shares (17,026,559) (10,478,035) (42,480,798)
------------ ------------ ------------
Total increase (decrease) from
Investor share transactions (4,727,672) (5,812,990) 5,935,694
------------ ------------ ------------
ADVISOR SHARE TRANSACTIONS:
Sales of shares 1,706,328 807,383 5,849,691
Reinvestment of distributions 0 0 12,796
Redemptions of shares (1,081,099) (867,866) (5,298,368)
------------ ------------ ------------
Total increase (decrease) from
Advisor share transactions 625,229 (60,483) 564,119
------------ ------------ ------------
NET ASSETS
Beginning of period 46,983,709 52,753,303 56,223,534
------------ ------------ ------------
End of period $ 57,309,076 $ 46,983,709 $ 52,753,303
============ ============ ============
Undistributed (distributions in
excess of) net investment income $ (264,491) $ (120,661) $ 0
============ ============ ============
OTHER INFORMATION
INVESTOR SHARE TRANSACTIONS:
Sales of shares 832,238 359,380 3,708,043
Reinvestment of distributions 0 0 9,456
Redemption of shares (1,167,644) (801,878) (3,477,759)
------------ ------------ ------------
Net increase (decrease) in
Investor shares (335,406) (442,498) 239,740
============ ============ ============
ADVISOR SHARE TRANSACTIONS:
Sales of shares 112,535 62,559 524,063
Reinvestment of distributions 0 0 1,058
Redemption of shares (73,042) (67,963) (450,609)
------------ ------------ ------------
Net increase (decrease) in
Advisor shares 39,493 (5,404) 74,512
============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
42
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MICRO CAP FUND
------------------------------------------------
Six Months Ended For the Period
April 30, 2000 June 1, 1999 to Year Ended
(Unaudited) October 31, 1999 May 31, 1999
---------------- ---------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From Operations:
Net investment income $ (126,862) $ (51,272) $ (90,189)
Net realized gain (loss) on
investments and foreign
currency 19,024,980 3,611,077 3,798,687
Change in net unrealized
appreciation (depreciation) on
investments and foreign
currency 952,783 (154,964) 932,978
----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations 19,850,901 3,404,841 4,641,476
----------- ----------- -----------
Dividends and distributions to
Investor Shareholders:
From net investment income 0 0 0
From net realized capital gains (5,813,221) 0 (1,091,088)
----------- ----------- -----------
(5,813,221) 0 (1,091,088)
----------- ----------- -----------
INVESTOR SHARE TRANSACTIONS:
Sales of shares 19,107,602 3,871,457 6,563,434
Reinvestment of distributions 5,642,897 0 770,633
Redemptions of shares (4,595,119) (998,073) (2,906,697)
----------- ----------- -----------
Total increase (decrease) from
Investor share transactions 20,155,380 2,873,384 4,427,370
----------- ----------- -----------
NET ASSETS
Beginning of period 20,595,582 14,317,357 6,339,599
----------- ----------- -----------
End of period $54,788,642 $20,595,582 $14,317,357
=========== =========== ===========
Undistributed (distributions in
excess of) net investment income $ (126,862) $ 0 $ 0
=========== =========== ===========
OTHER INFORMATION
INVESTOR SHARE TRANSACTIONS:
Sales of shares 675,221 174,358 409,850
Reinvestment of distributions 280,740 0 56,415
Redemption of shares (138,835) (46,302) (201,229)
----------- ----------- -----------
Net increase (decrease) in
Investor shares 817,126 128,056 265,036
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
43
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding
throughout each period:
<TABLE>
<CAPTION>
Six Months Ended For the Year Ended October 31,
April 30, 2000 ---------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 (a) 1995
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $ 17.02 $ 17.10 $ 18.37 $ 20.01 $ 20.91 $ 23.17
-------- -------- -------- -------- -------- --------
Investment Operations (b)
Net Investment Income 0.06 0.07 0.23 0.14 0.15 0.46
Net Realized and
Unrealized Gain
(Loss) on Investments
and Foreign Currency
Transactions 2.35 3.20 0.34 1.31 1.74 (0.18)
-------- -------- -------- -------- -------- --------
Total from Investment
Operations 2.41 3.27 0.57 1.45 1.89 0.28
-------- -------- -------- -------- -------- --------
Distributions From
Net Investment Income (0.07) (0.18) (0.29) (0.46) (0.47) --
Net Realized Gain on
Investments and
Foreign Currency
Transactions (1.60) (3.17) (1.55) (2.63) (2.32) (2.54)
-------- -------- -------- -------- -------- --------
Total Distributions (1.67) (3.35) (1.84) (3.09) (2.79) (2.54)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period $ 17.76 $ 17.02 $ 17.10 $ 18.37 $ 20.01 $ 20.91
======== ======== ======== ======== ======== ========
Total Return (c) 14.66% 21.82% 3.82% 8.33% 10.05% 2.08%
Ratios and Supplementary
Data:
Net Assets at End of
Period (in thousands) $123,903 $157,620 $129,955 $191,219 $202,735 $212,330
Ratios to Average Net
Assets: (b)
Expenses including
reimbursement/waiver
of fees 0.99%(d) 0.99% 0.99% 0.99% 0.99% 0.91%
Expenses excluding
reimbursement/waiver
of fees 1.12%(d) 1.06% 1.08% 1.06% 1.04% N/A
Net investment income
including
reimbursement/ waiver
of fees 0.27%(d) 0.60% 1.14% 0.67% 0.86% 0.99%
Portfolio Turnover Rate
(e) 59%(f) 85% 53% 36% 56% 61%
</TABLE>
--------------
(a) On November 1, 1995, the Fund converted to a master-feeder structure.
(b) For the period November 1, 1995 to May 31, 1999, the Fund recognized its
proportionate share of income, expenses and gains/losses of the underlying
portfolio, Schroder International Equity Portfolio. Commencing June 1,
1999, the income, expenses and gains/losses were directly accrued to the
Fund.
(c) Total returns would have been lower had certain expenses not been waived or
reimbursed during the periods shown (See Note 3). Total return calculations
for a period of less than one year are not annualized.
(d) Annualized.
(e) The portfolio turnover rates for the years after October 31, 1995 through
October 31, 1998, represent the turnover of the underlying Portfolio,
Schroder International Equity Portfolio. For the year ending October 31,
1999, the rate represents the period from November 1, 1998 through May 31,
1999 during which time the Fund invested in the Portfolio and from June 1,
1999 through October 31, 1999, during which time the Fund held direct
investments in a portfolio of securities.
(f) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
44
<PAGE>
--------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding
throughout each period:
<TABLE>
<CAPTION>
Six Months For the Period For the Year For the Period
Ended April 30, 2000 Ended Ended Ended
(Unaudited) October 31, 1999 (a) May 31, 1999 May 31, 1998 (f)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 12.18 $ 10.62 $ 9.04 $ 10.00
-------- -------- -------- -------
Investment Operations (b)
Net Investment Income (Loss) (0.14) (0.03) 0.03 0.02
Net Realized and Unrealized
Gain (Loss) on Investments
and Foreign Currency
Transactions 2.08 1.59 1.58 (0.98)
-------- -------- -------- -------
Total from Investment
Operations 1.94 1.56 1.61 (0.96)
-------- -------- -------- -------
Distributions from
Net Investment Income (0.12) -- (0.03) --
Net Realized Gain on
Investments and Foreign
Currency Transactions (0.49) -- -- --
-------- -------- -------- -------
Total Distributions (0.61) -- (0.03) --
-------- -------- -------- -------
Net Asset Value, End of Period $ 13.51 $ 12.18 $ 10.62 $ 9.04
======== ======== ======== =======
Total Return (c) 15.47% 14.69% 17.88% (9.60)%
Ratios and Supplementary Data
Net Assets at End of Period
(in thousands) $ 24,893 $ 3,162 $ 2,218 $ 18
Ratios to Average Net Assets:
(b)
Expenses including
reimbursement/ waiver of
fees 1.70%(d) 1.70%(d) 1.65% 1.70%(d)
Expenses excluding
reimbursement/ waiver of
fees 2.70%(d) 7.84%(d) 10.74% --(e)
Net investment income (loss)
including
reimbursement/waiver of
fees (0.21)%(d) (0.59)%(d) 0.51% 1.72%(d)
Portfolio Turnover Rate (g) 86%(h) 160% 177%(h) 23%(h)
</TABLE>
----------------
(a) Effective October 31, 1999, the Fund changed its fiscal year end from May
31 to October 31.
(b) Prior to September 17, 1999, the Fund recognized its proportionate share of
income, expenses and gains/losses of the underlying portfolio, Schroder EM
Core Portfolio. Commencing September 20, 1999, the income, expenses and
gains/losses were directly accrued to the Fund.
(c) Total returns would have been lower had certain expenses not been waived or
reimbirsed during the periods shown. (See Note 3). Total return
calculations for a period of less than one year are not annualized.
(d) Annualized.
(e) Amount is not meaningful due to short period of operations.
(f) For the period October 31, 1997 (Commencement of Operations) through
May 31, 1998.
(g) The portfolio turnover rates for the periods ending May 31, 1998 and year
ended May 31, 1999 represent the turnover of the underlying Portfolio,
Schroder EM Core Portfolio. For the period ending October 31, 1999, the
rate represents the period from June 1, 1999 through September 17, 1999
during which time the Fund invested in the Portfolio and from Spetember 20,
1999 through October 31, 1999, during which time the Fund held direct
investments in a portfolio of securities.
(h) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
45
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor Share outstanding
throughout each period:
<TABLE>
<CAPTION>
For the Year Ended For the Period
Six Months October 31, Ended
Ended April 30, 2000 --------------------------- October 31,
(Unaudited) 1999 1998 1997 (a)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 14.29 $ 9.35 $ 9.22 $10.00
------- ------- ------ ------
Investment Operations (b)
Net Investment Income (Loss) (0.03) 0.06 0.05 0.02
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions 5.23 5.62 0.60 (0.79)
------- ------- ------ ------
Total from Investment Operations 5.20 5.68 0.65 (0.77)
------- ------- ------ ------
Distributions from
Net Investment Income (0.01) (0.04) (0.01) (0.01)
Net Realized Gain on Investments and
Foreign Currency Transactions (1.96) (0.70) (0.51) --
------- ------- ------ ------
Total Distributions (1.97) (0.74) (0.52) (0.01)
------- ------- ------ ------
Net Asset Value, End of Period $ 17.52 $ 14.29 $ 9.35 $ 9.22
======= ======= ====== ======
Total Return (c) 38.22% 65.27% 7.88% (7.73)%
Ratios and Supplementary Data:
Net Assets at End of Period (in thousands) $15,160 $ 9,836 $4,165 $6,836
Ratios to Average Net Assets: (b)
Expenses including reimbursement/waiver of
fees 1.50%(d) 1.50% 1.50% 1.50%(d)
Expenses excluding reimbursement/waiver of
fees 2.53%(d) 2.74% 5.26% 3.93%(d)
Net investment income including
reimbursement/waiver of fees (0.23%)(d) 0.53% 0.33% 0.21%(d)
Portfolio Turnover Rate (e) 54%(f) 81% 82% 32%(f)
</TABLE>
--------------
(a) For the period November 4, 1996 (Commencement of Operations) through
October 31, 1997.
(b) Prior to June 1, 1999, the Fund recognized its proportionate share of
income, expenses and gains/losses of the underlying portfolio, Schroder
International Smaller Companies Portfolio. Commencing June 1, 1999, the
income, expenses and gains/losses were directly accrued to the Fund.
(c) Total returns would have been lower had certain expenses not been waived or
reimbursed during the periods shown (See Note 3). Total return calculations
for a period of less than one year are not annualized.
(d) Annualized.
(e) The portfolio turnover rates for the period ending October 31, 1997 and
year ended October 31, 1998, represent the turnover of the underlying
portfolio, Schroder International Smaller Companies Portfolio. For the year
ending October 31, 1999, the rate represents the period from November 1,
1998 through May 31, 1999 during which time the Fund invested in the
Portfolio and from June 1, 1999 through October 31, 1999, during which time
the Fund held direct investments in a portfolio of securities.
(f) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
46
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding
throughout each period:
<TABLE>
<CAPTION>
Six Months
Ended For the Year Ended October 31,
April 30, 2000 ----------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period $ 6.73 $ 7.79 $ 9.82 $ 9.76 $ 9.41 $ 8.52
------- ------- ------- ------- ------- -------
Investment Operations
Net Investment Income
(Loss) (0.03) (0.06) (0.06) (0.01) 0.04 0.07
Net Realized and
Unrealized Gain
(Loss) on Investments 1.45 2.00 0.78 2.20 1.62 1.33
------- ------- ------- ------- ------- -------
Total from Investment
Operations 1.42 1.94 0.72 2.19 1.66 1.40
------- ------- ------- ------- ------- -------
Distributions From
Net Investment Income -- -- -- (0.02) (0.07) (0.05)
Net Realized Gain on
Investments (0.82) (3.00) (2.75) (2.11) (1.24) (0.46)
------- ------- ------- ------- ------- -------
Total Distributions (0.82) (3.00) (2.75) (2.13) (1.31) (0.51)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period $ 7.33 $ 6.73 $ 7.79 $ 9.82 $ 9.76 $ 9.41
======= ======= ======= ======= ======= =======
Total Return (a) 23.23% 30.95% 8.87% 26.49% 19.45% 17.68%
Ratios and Supplementary
Data:
Net Assets at End of
Period (in thousands) $15,960 $14,110 $12,540 $13,861 $17,187 $19,688
Ratios to Average Net
Assets:
Expenses including
reimbursement/waiver
of fees 1.50%(b) 1.50% 1.50% 1.50% 1.40% 1.40%
Expenses excluding
reimbursement/waiver
of fees 1.85%(b) 1.99% 1.85% 1.68% 1.43% N/A
Net investment income
(loss) including
reimbursement/waiver
of fees (0.82%)(b) (0.93%) (0.71%) (0.09%) 0.43% 0.78%
Portfolio Turnover Rate 75%(c) 87% 209% 44% 57% 57%
</TABLE>
--------------
(a) Total returns would have been lower had certain Fund expenses not been
waived or reimbursed during the periods shown (see Note 3).
Total return calculations for a period of less than one year are not
annualized.
(b) Annualized.
(c) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
47
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding
throughout each period:
<TABLE>
<CAPTION>
Six Months For the For the
Ended Period For the Year Ended Period For the Year Ended
April 30, Ended May 31, Ended October 31,
2000 October 31, --------------------- May 31, ---------------------
(Unaudited) 1999 (b) 1999 1998 1997 (g) 1996 (a) 1995
<S> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 12.79 $ 12.80 $ 14.76 $ 13.26 $ 17.23 $ 15.14 $ 11.81
------- ------- -------- ------- ------- ------- -------
Investment Operations (c)
Net Investment Income (Loss) (0.05) (0.03) (0.09) (0.06) (0.02) (0.06) (0.04)
Net Realized and Unrealized
Gain (Loss) on Investments 4.23 0.02 (1.84) 2.82 1.88 4.10 3.78
------- ------- -------- ------- ------- ------- -------
Total from Investment
Operations 4.18 (0.01) (1.93) 2.76 1.86 4.04 3.74
------- ------- -------- ------- ------- ------- -------
Distributions From
Net Realized Gain on
Investments -- -- (0.03) (1.26) (5.83) (1.95) (0.41)
------- ------- -------- ------- ------- ------- -------
Net Asset Value, End of Period $ 16.97 $ 12.79 $ 12.80 $ 14.76 $ 13.26 $ 17.23 $ 15.14
======= ======= ======== ======= ======= ======= =======
Total Return (d) 32.68% (0.08)% (13.08)% 21.63% 14.73% 29.35% 32.84%
Ratios and Supplementary Data
Net Assets at End of Period
(in thousands) $50,279 $42,177 $ 47,870 $51,679 $26,104 $13,743 $15,287
Ratios to Average Net Assets:
(c)
Expenses including
reimbursement/waiver of
fees 1.26%(e) 1.35%(e) 1.42% 1.37% 1.49%(e) 1.49% 1.49%
Expenses excluding
reimbursement/waiver of
fees 1.26%(e) 1.35%(e) 1.45% 1.37% 1.87%(e) N/A N/A
Net investment income (loss)
including reimbursement/
waiver of fees (0.51)%(e) (0.54)%(e) (0.65)% (0.51)% (0.42)%(e) (0.35)% (0.30)%
Portfolio Turnover Rate (f) 91%(h) 52%(h) 119% 55% 34%(h) 59% 93%
</TABLE>
------------------
(a) On August 15, 1996, the Fund converted to a master-feeder structure.
(b) Effective October 31, 1999, the Fund changed its fiscal year end from May
31 to October 31.
(c) From November 1, 1995 to May 31, 1999, the Fund recognized its
proportionate share of income, expenses and gains/losses of the underlying
portfolio, Schroder U.S. Smaller Companies Portfolio. Commencing June 1,
1999, the income, expenses and gains/losses were directly accrued to the
Fund.
(d) Total returns would have been lower had certain expenses not been waived or
reimbursed during the periods shown (See Note 3). Total return calculations
for a period of less than one year are not annualized.
(e) Annualized.
(f) The portfolio turnover rates for the years after October 31, 1995 through
May 31, 1999, represent the turnover of the underlying portfolio, Schroder
U.S. Smaller Companies Portfolio.
(g) Effective May 31, 1997, the Fund changed its fiscal year end from October
31 to May 31.
(h) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
48
<PAGE>
--------------------------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--ADVISOR SHARES
Selected per share data and ratios for an Advisor share outstanding
throughout each period:
<TABLE>
<CAPTION>
Six Months For the For the For the For the
Ended Period Year Year Period
April 30, Ended Ended Ended Ended
2000 October 31, May 31, May 31, May 31,
(Unaudited) 1999 (a) 1999 1998 1997 (b)
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $12.72 $ 12.74 $ 14.72 $13.24 $11.89
------ ------- -------- ------ ------
Investment Operations (c)
Net Investment Income (Loss) (0.05) (0.04) (0.12) (0.05) (0.03)
Net Realized and Unrealized
Gain (Loss) on Investments 4.18 0.02 (1.83) 2.79 1.38
------ ------- -------- ------ ------
Total from Investment
Operations 4.13 (0.02) (1.95) 2.74 1.35
------ ------- -------- ------ ------
Distributions From
Net Realized Gain on
Investments -- -- (0.03) (1.26) --
------ ------- -------- ------ ------
Net Asset Value, End of Period $16.85 $ 12.72 $ 12.74 $14.72 $13.24
====== ======= ======== ====== ======
Total Return (d) 32.39% (0.16)% (13.25)% 21.50% 11.35%
Ratios and Supplementary Data
Net Assets at End of Period
(in thousands) $7,030 $ 4,807 $ 4,883 $4,544 $ 81
Ratios to Average Net Assets:
(c)
Expenses including
reimbursement/ waiver of
fees 1.51%(e) 1.60%(e) 1.69% 1.58% 1.74%(e)
Expenses excluding
reimbursement/ waiver of
fees 3.19%(e) 2.24%(e) 2.52% 3.88% 57.02%(e)
Net investment income (loss)
including
reimbursement/waiver of
fees (0.76)%(e) (0.79)%(e) (0.95)% (0.78)% (0.67)%(e)
Portfolio Turnover Rate (f) 91%(g) 52%(g) 119% 55% 34%(g)
</TABLE>
--------------
(a) Effective October 31, 1999, the Fund changed its fiscal year end from May
31 to October 31.
(b) Advisor Shares were first issued on December 23, 1996.
(c) Prior to June 1, 1999, the Fund recognized its proportionate share of
income, expenses and gains/losses of the underlying portfolio, Schroder
U.S. Smaller Companies Portfolio. Commencing June 1, 1999, the income,
expenses and gains/losses were directly accrued to the Fund.
(d) Total returns would have been lower had certain expenses not been waived or
reimbursed during the period shown (see Note 3). Total return calculation
for a period of less than one year are not annualized.
(e) Annualized.
(f) The portfolio turnover rates for the periods through May 31, 1999,
represents the turnover of the underlying portfolio, Schroder U.S. Smaller
Companies Portfolio.
(g) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
49
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MICRO CAP FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding
throughout each period:
<TABLE>
<CAPTION>
Six Months
Ended For the Period For the Year For the
April 30, 2000 Ended Ended Period Ended
(Unaudited) October 31, 1999 (a) May 31, 1999 May 31, 1998 (d)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 24.59 $ 20.18 $ 14.26 $ 10.00
------- ------- ------- -------
Investment Operations:
Net Investment Income (Loss) (0.08) (0.06) (0.13) (0.04)
Net Realized and Unrealized
Gain on Investments 15.72 4.47 8.28 4.50
------- ------- ------- -------
Total from Investment
Operations 15.64 4.41 8.15 4.46
------- ------- ------- -------
Distributions From
Net Realized Gain on
Investments (7.12) -- (2.23) (0.20)
------- ------- ------- -------
Net Asset Value, End of Period $ 33.11 $ 24.59 $ 20.18 $ 14.26
======= ======= ======= =======
Total Return (b) 82.30% 21.85% 64.56% 45.41%
Ratios and Supplementary Data:
Net Assets at End of Period
(in thousands) $54,789 $20,596 $14,317 $ 6,340
Ratios to Average Net Assets:
Expenses including
reimbursement/waiver of
fees 2.00%(c) 2.00%(c) 2.00% 2.00%(c)
Expenses excluding
reimbursement/waiver of
fees 2.14%(c) 2.53%(c) 3.27% 6.02%(c)
Net investment loss
including
reimbursement/waiver of
fees (0.79)%(c) (0.73)%(c) (1.10)% (0.77)%(c)
Portfolio Turnover Rate 407%(e) 173%(e) 341% 166%(e)
</TABLE>
--------------
(a) Effective October 31, 1999, the Fund changed its fiscal year end from May
31 to October 31.
(b) Total returns would have been lower had certain Fund expenses not been
waived or reimbursed during the periods shown (See Note 3). Total return
calculations for a period of less than one year are not annualized.
(c) Annualized.
(d) For the period October 15, 1997 (Commencement of Operations) through
May 31, 1998.
(e) Not annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
50
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED)
NOTE 1. ORGANIZATION
Schroder Capital Funds (Delaware) (the "Trust"), is an open-end series
management investment company registered under the Investment Company Act of
1940, as amended. The Trust was organized as a Maryland corporation on July
30, 1969; reorganized as Schroder Capital Funds, Inc., a series company, on
February 29, 1988; and reorganized on January 9, 1996, as a Delaware business
trust. The Trust has an unlimited number of authorized shares which are
divided into seven separate investment portfolios, six of which are included
in this report: Schroder International Fund, Schroder Emerging Markets Fund,
Schroder International Smaller Companies Fund, Schroder U.S. Diversified
Growth Fund, Schroder U.S. Smaller Companies Fund and Schroder Micro Cap Fund
(collectively, the "Funds"). All Funds, except Schroder Micro Cap Fund, are
presently authorized to issue two classes of shares--"Investor Shares" and
"Advisor Shares". As of April 30, 2000, each Fund had Investor Shares
outstanding and only Schroder U.S. Smaller Companies Fund has Advisor Shares
outstanding.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by
the Trust which are in conformity with generally accepted accounting
principles:
VALUATION OF INVESTMENTS
Portfolio securities listed on recognized stock exchanges are valued at
the last reported sale price on the exchange on which the securities are
principally traded. Listed securities traded on recognized stock exchanges
where last sale prices are not available are valued at the mean of the closing
bid and ask prices ("mid-market price") or, if none, the last sale price on
the preceding trading day. Securities traded in over-the-counter markets are
valued at the most recent reported mid-market price. Prices used for
valuations generally are provided by independent pricing services. Short-term
investments, having a maturity of 60 days or less, are valued at amortized
cost, which approximates market value, unless the investment adviser believes
another valuation is more appropriate. Other securities and assets for which
market quotations are not readily available are valued at fair value as
determined in good faith in accordance with procedures approved by the Trust's
Board of Trustees ("Trustees").
REPURCHASE AGREEMENTS
When entering into repurchase agreements, it is each Fund's policy (other
than Schroder U.S. Diversified Growth Fund) that the Fund take into its
possession, through its custodian, the underlying collateral and monitor the
collateral's value at the time the agreement is entered into and on a daily
basis during the term of the repurchase agreement to ensure that it equals or
exceeds the repurchase price. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral
may be subject to legal proceedings.
INVESTMENT TRANSACTIONS
Investment security transactions are recorded as of trade date. Realized
gains and losses on sales of investments are determined on the basis of
identified cost.
--------------------------------------------------------------------------------
51
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date except that certain
foreign dividends are recorded as the Funds are informed of the ex-dividend
date. Dividend income is recorded net of unrecoverable withholding tax.
Interest income is recorded on an accrual basis. Foreign dividend and interest
income amounts and realized capital gains or losses are converted to U.S.
dollar equivalents using foreign exchange rates in effect at the date of the
transactions.
EXPENSES
Expenses are recorded on an accrual basis. Most of the expenses of the
Trust can be directly attributable to a specific Fund and/or class of shares.
Expenses not directly attributable to a specific Fund and/or class of shares
are allocated among the Funds and/or classes of shares in such a manner as
deemed equitable by SIMNA or the Trustees.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income and net realized
capital gains, if any, are declared and distributed at least annually.
Distributions are recorded on the ex-dividend date.
To the extent a Fund that currently offers two classes of shares,
investment income, common expenses of a Fund and gains/losses on investments
are allocated to both classes of the Fund based on the respective daily net
assets of each class. Shareholder servicing fees related to Advisor Shares are
charged directly to that class. Neither class has preferential dividend
rights. Income dividends, if any, paid by a Fund with respect to two classes
of shares will normally differ in amounts due to the differing expenses borne
by each class.
DEFERRED ORGANIZATION COSTS
Costs incurred by the Funds in connection with their organizations are
amortized on a straight-line basis over a five-year period.
FEDERAL INCOME TAXES
It is the policy of the Trust for each Fund to qualify as a "regulated
investment company" by complying with the requirements of Subchapter M of the
Internal Revenue Code of 1986, as amended. By so qualifying, the Funds will
not be subject to federal income taxes to the extent that, among other things,
they distribute substantially all of their taxable income, including capital
gains, for the fiscal year. In addition, as a result of distributing
substantially all of their net investment income during each calendar year,
capital gains and certain other amounts, if any, the Funds will not be subject
to a federal excise tax.
As of May 31, 1999, the Fund listed below had net tax basis capital loss
carryforwards, for federal income tax purposes, that may be applied against
taxable gains until their expiration date as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRATION DATE
---- ---------- ---------------
<S> <C> <C>
Schroder U.S. Smaller Companies Fund $5,190,650 May 31, 2007
</TABLE>
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
losses deferred due to wash sales, passive foreign investment companies, tax
treatment of foreign currency and excise tax regulations.
--------------------------------------------------------------------------------
52
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOREIGN CURRENCY
Foreign currency amounts are translated into U.S. dollars at the mean of
the bid and asked prices of such currencies against U.S. dollars as follows:
(i) assets and liabilities at the rate of exchange at the end of the
respective period; and (ii) purchases and sales of securities and income and
expenses at the rate of exchange prevailing on the dates of such transactions.
The portion of the results of operations arising from changes in the exchange
rates and the portion due to fluctuations arising from changes in the market
prices of securities are not isolated. Such fluctuations are included with the
net realized and unrealized gain or loss on investments.
Certain Funds may enter into forward foreign currency contracts to protect
the U.S. dollar value of the underlying portfolio of securities against the
effect of possible adverse movements in foreign exchange rates. Principal
risks associated with such transactions include the movement in value of the
foreign currency relative to the U.S. dollar and the ability of the
counterparty to perform. Fluctuations in the value of such forward foreign
currency transactions are recorded daily as unrealized gain or loss; realized
gain or loss includes net gain or loss on transactions that have terminated by
settlement or by the Funds entering into offsetting commitments.
NOTE 3. INVESTMENT ADVISORY FEES AND ADMINISTRATION AGREEMENTS
The Trust has entered into an investment advisory agreement with Schroder
Investment Management North America Inc. ("SIMNA"). Under this agreement,
SIMNA provides investment management services and is entitled to receive for
its services compensation payable monthly at the following annual rates based
on average daily net assets of each Fund taken separately: 0.50% up to $100
million, 0.40% of the next $150 million, and 0.35% in excess of $250 million
for Schroder International Fund; 1.00% for Schroder Emerging Markets Fund;
0.85% for Schroder International Smaller Companies Fund; 0.75% up to $100
million, and 0.50% in excess of $100 million for Schroder U.S. Diversified
Growth Fund; 0.50% up to $100 million, 0.40% of the next $150 million, and
0.35% in excess of $250 million for Schroder U.S. Smaller Companies Fund; and
1.25% for Schroder Micro Cap Fund.
The administrator of the Trust is Schroder Fund Advisors Inc. ("Schroder
Advisors") a wholly owned subsidiary of SIMNA. For its services, Schroder
Advisors is entitled to receive compensation at an annual rate payable monthly
of: 0.225% of the average daily net assets of the Schroder International Fund;
and 0.25% of the average daily net assets of the Schroder Emerging Markets
Fund, Schroder International Smaller Companies Fund, Schroder U.S. Smaller
Companies Fund and Schroder Micro Cap Fund.
In addition, the Trust has entered into a Sub-Administration Agreement
with State Street Bank and Trust Company ("State Street") and Schroder
Advisors. Under that Agreement, the Trust, together with other mutual funds
managed by SIMNA and certain related entities, pays fees to State Street based
on the combined average daily net assets of all of the Funds in the Schroder
complex, according to the following annual rates: 0.06% of the first $1.7
billion of such assets, 0.04% of the next $1.7 billion, and 0.02% of assets in
excess of $3.4 billion, subject to certain minimum requirements.
In order to limit the Fund's expenses, SIMNA and Schroder Advisors are
contractually obligated to reduce their compensation (and, if necessary, to
pay certain expenses of the Trust) until October 31, 2000, to the extent that
each Fund's total operating expenses attributable to its Investor Shares and
Advisor Shares exceed the following annual rates (based on average net assets
of each Fund taken separately): Schroder International Fund: 0.99% (Investor
Shares) and 1.24% (Advisor Shares); Schroder Emerging Markets Fund: 1.70%
(Investor Shares) and 1.95% (Advisor Shares); Schroder International Smaller
Companies Fund: 1.50% (Investor Shares) and 1.75% (Advisor Shares); Schroder
U.S. Diversified Growth Fund: 1.50% (Investor Shares) and 1.75% (Advisor
Shares); Schroder U.S. Smaller Companies Fund: 1.49% (Investor Shares) and
--------------------------------------------------------------------------------
53
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1.74% (Advisor Shares) and Schroder Micro Cap Fund: 2.00% (Investor Shares).
In addition, SIMNA has voluntarily undertaken, until further notice, to limit
its fees or to pay a portion of the expenses incurred by Schroder U.S. Smaller
Companies Fund in respect of its Advisor Shares so that the net expenses of
the Fund's Advisor Shares will not exceed the net expenses of the Fund's
Investor Shares by more than 0.25%. SIMNA has contractually agreed that, in
any event, the advisory fees paid to it by Schroder U.S. Diversified Growth
Fund through May 31, 2000 will be limited to 0.65% of the Fund's average daily
net assets. SIMNA is contractually obligated through October 31, 2000 to waive
0.10% of the advisory fees payable by Schroder International Smaller Companies
Fund. SIMNA has agreed to limit the investment advisory fees payable to it by
Schroder International Fund through October 31, 2000 to the annual rate of
0.45% of the Fund's average daily net assets.
NOTE 4. SHAREHOLDER SERVICING PLAN
The Trust has adopted a Shareholder Servicing Plan (the "Plan"), for
Advisor Shares under which Schroder Advisors, or other shareholder servicing
organizations, provide administrative support services to shareholders of the
Funds' Advisor Shares. For providing for, or arranging for the provision of,
these shareholders services, Schroder Advisors is entitled to receive
compensation monthly at an annual rate of up to 0.25% of the average net
assets of the Fund attributable to its Advisor Shares. Schroder Advisors may
pay shareholder servicing organizations for these services at an annual rate
of up to 0.25%.
NOTE 5. TRANSACTIONS WITH AFFILIATES
TRUSTEES' FEES
The Trust pays no compensation to Trustees who are interested persons of
the Trust, SIMNA or Schroder Advisors. For their services as Trustees of all
open-end investment companies distributed by Schroder Advisors, with the
exception of Schroder Series Trust II, trustees who are not interested persons
of the Trust, SIMNA or Schroder Advisors receive an annual retainer of $11,000
and $1,250 per meeting attended in person or $500 per meeting attended by
telephone. Members of an Audit Committee for one or more of such Funds receive
an additional $1,000 per year. Payment of the annual retainer will be
allocated among the various investment companies based on their relative net
assets. Payment of meeting fees will be allocated only among those investment
companies to which the meeting relates.
NOTE 6. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of investments, excluding short-term
securities for each Fund, for the six month period ended April 30, 2000 were
as follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT
PURCHASES SALES
------------ ------------
<S> <C> <C>
Schroder International Fund............................ $ 77,761,103 $136,295,872
Schroder Emerging Markets Fund......................... 30,955,264 11,848,322
Schroder International Smaller Companies Fund.......... 8,125,745 7,387,891
Schroder U.S. Diversified Growth Fund.................. 11,868,737 10,926,400
Schroder U.S. Smaller Companies Fund................... 43,580,814 51,752,055
Schroder Micro Cap Fund................................ 113,429,496 107,611,851
</TABLE>
--------------------------------------------------------------------------------
54
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At April 30, 2000 the identified cost for federal income tax purposes of
investments owned by each Fund and their respective gross unrealized
appreciation and depreciation at April 30, 2000 were as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED NET UNREALIZED
------------------------------ APPRECIATION/
IDENTIFIED COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
--------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Schroder International
Fund..................... $115,040,766 $15,644,088 $(7,900,772) $7,743,316
Schroder Emerging Markets
Fund..................... 26,578,567 1,638,106 (2,406,723) (768,617)
Schroder International
Smaller Companies Fund... 12,285,466 4,197,606 (1,495,535) 2,702,071
Schroder U.S. Diversified
Growth Fund.............. 12,220,277 4,528,743 (710,495) 3,818,248
Schroder U.S. Smaller
Companies Fund........... 46,872,016 11,949,864 (2,557,982) 9,391,882
Schroder Micro Cap Fund.... 51,043,322 4,463,741 (2,141,871) 2,321,870
</TABLE>
The aggregate cost of each Fund's investments was substantially the same
for book and federal income tax purposes at April 30, 2000.
NOTE 7. PORTFOLIO INVESTMENT RISKS
Schroder International Smaller Companies Fund has a relatively large
number of portfolio securities invested in companies domiciled in the United
Kingdom, France, Germany and Japan. The Fund may be more susceptible to
political, social and economic events adversely affecting those countries than
securities not so invested.
Schroder Emerging Markets Fund may invest more than 25% of its total
assets in issuers located in any one country. To the extent that it does so,
the Fund is susceptible to a range of factors that could adversely affect that
country, including political and economic developments and foreign
exchange-rate fluctuations. As a result of investing substantially in a single
country, the value of the Fund's assets may fluctuate more widely than the
value of shares of a comparable fund with a lesser degree of geographic
concentration. The Fund invests in countries with limited or developing
capital markets. Investments in these markets may involve greater risk than
investments in more developed markets.
Option contracts involve the risk that they may not work as intended due
to unanticipated developments in market conditions or other causes. Options
also involve the risk that the other party to the transaction will be unable
to meet its obligation or that the Funds will be unable to close out the
position at any particular time or at an acceptable price.
During the periods covered in this report, Schroder Micro Cap Fund
invested in a significent number of intial public offerings ("IPOs"). In
different market cycles, fewer companies may determine to make IPOs of their
securities. The investment performance of the Schroder Micro Cap Fund during
periods when it is unable to invest significantly or at all in IPOs may be
lower than during periods when the Fund is able to do so. The prices of
securities sold in IPOs can be highly volatile.
For more complete risk disclosure, please refer to the Funds' current
prospectus.
--------------------------------------------------------------------------------
55
<PAGE>
--------------------------------------------------------------------------------
SCHRODER CAPITAL FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
NOTE 8. BENEFICIAL INTEREST
The following table shows the number of shareholders each owning
beneficially or of record 5% or more of a class of shares of a Fund
outstanding as of April 30, 2000 and the total percentage of the class of
shares of the Fund held by such shareholders.
<TABLE>
<CAPTION>
5% OR GREATER
SHAREHOLDERS
---------------------------
SHARES % OF CLASS HELD
-------- ---------------
<S> <C> <C>
Schroder International Fund--Investor Shares............... 4 69.77%
Schroder Emerging Markets Fund--Investor Shares............ 4 97.64%
Schroder International Smaller Companies Fund--Investor
Shares................................................... 4 92.60%
Schroder U.S. Diversified Growth Fund--Investor Shares..... 4 26.87%
Schroder U.S. Smaller Companies Fund--Investor Shares...... 3 76.54%
Schroder U.S. Smaller Companies Fund--Advisor Shares....... 1 93.19%
Schroder Micro Cap Fund--Investor Shares................... 5 67.79%
</TABLE>
NOTE 9. SUBSEQUENT EVENT
Effective June 23, 2000, the Advisor Shares of Schroder U.S. Smaller
Companies Fund were recapitalized into Investor Shares, such that the Fund no
longer has any Advisor Shares outstanding.
--------------------------------------------------------------------------------
56
<PAGE>
INVESTMENT ADVISER
Schroder Investment Management
North America Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
TRUSTEES
Sharon L. Haugh, CHAIRMAN
Catherine A. Mazza, VICE CHAIRMAN
David N. Dinkins
Peter E. Guernsey
John I. Howell
Peter S. Knight
William L. Means
Clarence F. Michalis
Hermann C. Schwab
ADMINISTRATOR & DISTRIBUTOR
Schroders Fund Advisors Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
TRANSFER & SHAREHOLDER
SERVICING AGENT
Boston Financial Data Services, Inc.
CUSTODIAN
State Street Bank and Trust Company
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
COUNSEL
Ropes & Gray
The information contained in this report is
intended for the general information of the
shareholders of the Trust. This report is not
authorized for distribution to prospective
investors unless preceded or accompanied
by a current Trust prospectus which contains
important information concerning the Trust.
Schroder Capital Funds
P.O. Box 8507
Boston, MA 02266
800-464-3108
[SCHRODER LOGO]
------------------------------------------
SCHRODER CAPITAL
FUNDS
Schroder International Fund
Schroder Emerging Markets Fund
Schroder International Smaller Companies Fund
Schroder U.S. Diversified Growth Fund
Schroder U.S. Smaller Companies Fund
Schroder Micro Cap Fund
SEMI-ANNUAL REPORT
April 30, 2000
(Unaudited)
SF0600SAR
