<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR ENDED INCEPTION TO ONE YEAR ENDED INCEPTION TO
MARCH 31, 2000 MARCH 31, 2000 (a) APRIL 30, 2000 APRIL 30, 2000 (a)
-------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C>
Schroder Greater China Fund -
Investor Shares 25.09% 15.02% -15.58% -0.03%
</TABLE>
(a) Average annual total return from commencement of Fund operations (January 4,
1999)
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE
RESULTS. THE VALUE OF AN INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT
WILL BOTH FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN
INVESTOR'S ORIGINAL COST.
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
COMMON STOCKS - 3.4%
HONG KONG - 3.4%
210,900 Brilliance China Automotive
Holdings $34,117
(Cost $40,451)
SHORT-TERM INVESTMENTS - 18.7%
93,870 SSgA Money Market Fund
5.766% (1) 93,870
93,871 SSgA U.S. Government
Money Market Fund 5.677% (1) 93,871
---------
Total Short-Term Investments
(Cost $187,741) 187,741
---------
PRINCIPAL
AMOUNT VALUE
REPURCHASE AGREEMENT - 73.0%
$732,000 State Street Bank and Trust Company,
4.75%, 05/01/2000 (2) $ 732,000
-----------
(Cost $732,000)
Total Investments
(Cost $960,192) - 95.1% 953,858
Other Assets Less
Liabilities - 4.9% 49,385
-----------
Total Net Assets - 100% $ 1,003,243
===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
(1) Interest rate shown is 7-day yield as of April 30, 2000
(2) The repurchase agreement, dated 4/28/2000 with a repurchase price of
$732,290 is collateralized by a $725,000 United States Treasury Note,
6.625%, due 5/15/07, valued at $750,171.
The accompanying notes are an integral part of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investments in securities, at value - Note 2 $ 221,858
Repurchase Agreements 732,000
Cash 844
Dividends receivable 1,396
Interest receivable 566
Receivable for securities sold 96,476
Due from Investment Adviser - Note 3 10,420
----------
TOTAL ASSETS 1,063,560
----------
LIABILITIES
Payable for forward foreign currency contracts 2
Advisory fee payable - Note 3 800
Administration fee payable - Note 3 198
Accrued expenses and other liabilities 59,317
----------
TOTAL LIABILITIES 60,317
----------
NET ASSETS $1,003,243
==========
NET ASSETS
Capital paid-in $1,122,608
Distributions in excess of investment income (13,606)
Accumulated net realized loss on investments
and foreign currency transactions (99,422)
Net unrealized depreciation of investments
and foreign currency transactions (6,337)
----------
NET ASSETS $1,003,243
==========
Investor Shares:
Net Assets $1,003,243
Net asset value, offering and redemption
price per share $9.10
Total shares outstanding at end of period 110,301
Cost of securities including repurchase agreements $960,192
The accompanying notes are an integral part of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
INVESTMENT INCOME
Dividend income $ 2,887
Interest income 1,450
---------
TOTAL INVESTMENT INCOME 4,337
---------
EXPENSES
Investment advisory fees - Note 3 5,657
Administrative fees - Note 3 1,571
Subadministration Fees - Note 3 635
Custodian fees 20,892
Audit fees 11,746
Legal fees 17,186
Printing expenses 4,984
Trustees fees- Note 4 200
Transfer agent fees 10,764
Registration fees 8,981
Other 25
---------
TOTAL EXPENSES 82,641
Expenses borne by Investment Adviser - Note 3 (70,070)
---------
NET EXPENSES 12,571
----------
NET INVESTMENT LOSS (8,234)
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on investments sold (85,730)
Net realized loss on foreign currency transactions (13,692)
----------
Net realized loss on investments and foreign
currency transactions (99,422)
==========
Change in net unrealized depreciation on
investments (183,371)
Change in net unrealized appreciation on
foreign currency transactions 13,721
----------
Net change in unrealized appreciation (depreciation)
investments and foreign currency transactions (169,650)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS (269,072)
----------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $(277,306)
===========
The accompanying notes are an integral part of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
APRIL 30, 2000
<TABLE>
<CAPTION>
PERIOD ENDED
JANUARY 4, 1999
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 2000 OPERATIONS) TO
(UNAUDITED) OCTOBER 31, 1999
--------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) $(8,234) $9,987
Net realized gain (loss) on investments
and foreign currency transactions (99,422) 95,909
Change in net unrealized appreciation (DEPRECIATION)
of investments and foreign currency transactions (169,650) 163,313
-------- ----------
Net increase (decrease) in net assets
resulting from operations (277,306) 269,209
-------- ----------
Dividends and distributions to Investor
From net investment income (13,369) 0
From net realized capital gains (97,899) 0
------- ----------
Total distributions to shareholders (111,268) 0
-------- ----------
INVESTOR SHARE TRANSACTIONS:
Sale of shares 6,047 1,018,953
Reinvestment of distributions 111,268 0
Redemptions of shares (13,660) 0
-------- ----------
Total increase from capital share transactions 103,655 1,018,953
-------- ----------
Net Assets
Beginning of period 1,288,162 0
---------- ----------
End of period $1,003,243 $1,288,162
=========== ==========
Undistributed (distributions in excess of)
Net investment income $(13,606) $7,997
=========== ==========
OTHER INFORMATION
Investor Share Transactions:
Sales of shares 531 101,262
Reinvestment of distributions 9,971 0
Redemption of shares (1,463) 0
---------- ----------
Net increase (decrease) in Investor shares 9,039 101,262
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - INVESTOR SHARES
Selected per share data and ratios for an Investor Share outstanding throughout
each period:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (a)
----------- --------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $12.72 $10.00
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (0.07) 0.10
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions (2.45) 2.62
----- ----
TOTAL FROM INVESTMENT OPERATIONS (2.52) 2.72
----- ----
LESS DISTRIBUTIONS:
From Net Investment Income (0.13) 0.00
Net Realized Gain on Investments (0.97) 0.00
----- ----
TOTAL DISTRIBUTION (1.10) 0.00
----- ----
NET ASSET VALUE AT END OF PERIOD $9.10 $12.72
===== ======
TOTAL RETURN (b) (21.42)% 27.20%
RATIOS & SUPPLEMENTARY DATA
Net Assets at End of Period (000's) $1,003 $1,288
Ratios to Average Net Assets:
Expenses including reimbursement/
waiver of fees 2.00%(c) 2.00%(c)
Expenses excluding reimbursement/
waiver of fees 13.15%(c) 13.31%(c)
Net investment income including
reimbursement/waiver of fees (1.31)%(c) 1.00%(c)
Portfolio Turnover Rate (d) 74% 140%
</TABLE>
(a) For the period January 4, 1999 (commencement of operations) through October
31, 1999.
(b) 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.
(c) Annualized.
(d) Not annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
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 eight
investment portfolios. Included in this report is the Schroder Greater China
Fund (the "Fund"), which is a non-diversified portfolio that commenced
operations on January 4, 1999. The Trust is authorized to issue an unlimited
number of the Fund's Investor Shares and Advisor Shares of beneficial interest
without par value. As of April 30, 2000, the Fund had only Investor Shares
outstanding.
The Schroder Greater China Fund was liquidated on May 18, 2000.
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 sales 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. 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. Prices used for valuation generally are provided
by independent pricing services. Other securities and assets for which market
quotations are not readily available are valued at fair value as determined in
good faith using methods approved by the Trust's Board of Trustees ("Trustees").
REPURCHASE AGREEMENTS: When entering into repurchase agreements, it is the
Fund's policy 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.
INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date except
that certain foreign dividends are recorded as the Fund is 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 Schroder Investment Management North America Inc. ("SIMNA") or the
Trustees.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders from net
investment income and net realized capital gains are declared and
distributed at least annually. Distributions are recorded on the ex-dividend
date.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEDERAL INCOME TAXES: It is the policy of the Trust for the 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 Fund
will not be subject to federal income taxes to the extent that, among other
things, it distributes substantially all of its taxable income, including
capital gains, for the fiscal year. In addition, as a result of distributing
substantially all of its net investment income during each calendar year,
capital gains and certain other amounts, if any, the Fund will not be subject to
a federal excise tax.
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
passive foreign investment companies, foreign currencies, losses deferred due
to wash sales and excise tax regulations.
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.
The Fund 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 contract 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
Fund entering into offsetting commitments.
NOTE 3 - INVESTMENT ADVISORY FEES AND ADMINISTRATION AGREEMENTS
The Trust has entered into an investment advisory agreement with SIMNA. Under
this agreement, SIMNA provides investment management services and is entitled to
receive for its services compensation, payable monthly, at the annual rate of
.90% of the Fund's average daily net assets.
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 0.25% of the average daily net assets of the 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 Fund,
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 other Fund expenses) until March 1, 2001, to the extent that the Fund's
net expenses attributable to its Investor and Advisor shares exceed 2.00% and
2.25%, respectively (based on the Fund's average daily net assets).
NOTE 4 - 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 Fund Advisors Inc.,
with the exception of Schroder Series Trust II, trustees who are not interested
persons of the Trust, SIMNA or Schroder Fund Advisors Inc. will 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 investment companies receive an additional $1,000 per year. Payment of the
annual retainer will be allocated among the various Funds based on their
relative net assets.
NOTE 5 - INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of investments of non-government securities,
excluding short-term securities for the Fund, for the period ended April 30,
2000 were $808,144 and $1,833,090 respectively.
<PAGE>
--------------------------------------------------------------------------------
SCHRODER GREATER CHINA FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
At April 30, 1999, the identified cost for federal income tax purposes of
investments owned by the Fund was $960,192 with net unrealized depreciation of
$6,334. Gross unrealized appreciation and depreciation were $0 and 6,334,
respectively. The aggregate cost of the Fund's investments was substantially the
same for book and federal income tax purposes at April 30, 2000.
NOTE 6 - CONCENTRATION OF RISK
The Fund's investment in companies domiciled in China and Hong Kong may cause
the Fund to be more susceptible to political, social and economic events
adversely affecting Asian countries in which it invests than funds not so
concentrated. For more complete risk disclosure, please refer to the Fund's
current prospectus.
NOTE 7 - BENEFICIAL INTEREST
The Fund had one Investor shareholder owning beneficially or of record 99.58% of
shares of the Fund.
