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Schroder U.S. Equity Fund
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Two Portland Square, Portland, Maine 04101
General Information (207) 879-6200
Account Information (800) 344-8332
Fund Literature (800) 290-9826
Fax (207) 879-6050
INVESTMENT OBJECTIVE
The primary investment objective of the Fund is to seek growth of capital. It
seeks to achieve its objective by investing in common stock and securities
convertible into common stock.
INVESTMENT ADVISER
Schroder Capital Management International Inc. (the 'Investment Adviser') is a
wholly owned indirect subsidiary of Schroders plc, the London Stock Exchange
listed holding company parent of an investment banking and investment management
group of companies (the 'Schroder Group') that dates its origins to 1804. The
investment management operations of the Schroder Group are located in 18
countries worldwide. The Schroder Group has been managing international
investment portfolios since the early years of this century. As of March 31,
1997, the Schroder Group had over $150 billion in assets under management. At
that same date, the Investment Adviser, together with its U.K. affiliate,
Schroder Capital Management International Ltd., had over $23 billion under
management.
June 15, 1997
Dear Shareholder:
We are pleased to present the semi-annual report for the Schroder U.S.
Equity Fund for the six-month period ending April 30, 1997. Over the period, the
total return of the Fund was 11.53% compared with its benchmark, the S&P 500
which rose 14.72%. The Lipper Growth Fund Average (which is made up of 799
funds) returned 7.24% for the same period. The reason for the Fund's
underperformance versus the S&P 500 was primarily attributable to disappointing
performance by a number of the portfolio's healthcare and capital goods
holdings, some of which were sold or reduced during the period.
The last six months have been a period of continued strength for the U.S.
equity markets and one in which the fundamental economic background in the U.S.
has remained favorable. Growth in the first quarter of 1997 was significantly
faster than most commentators had predicted late in 1996 and exceeded our own
relatively optimistic expectations. That this growth continues to be achieved
with little upward pressure on inflation is encouraging, but equally prompts
questions as to its sustainability when the economy is operating with so little
slack. It is, therefore, not surprising that markets have become more volatile
in the last few months, debating the timing of interest rate increases and the
probability of wage cost pressures showing up in the published inflation indices
as the year progresses.
It appears likely that such pressures will materialize and that further
interest rate increases should be expected in the second half of the year. This
is likely to restrict the scope for gains in the market and to lead to
additional volatility. We nevertheless expect any upward pressure on inflation
to be very modest and hence, the extent of interest rate increases needed to
control it to be low by historic standards, perhaps only 1% in total. It is,
moreover, encouraging that the very significant changes evident in U.S.
business in the last few years, reflected in improved profitability and
productivity, appear to remain an important corporate goal, and one which other
countries are keen to emulate.
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Schroder U.S. Equity Fund
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The competitiveness and long-term growth prospects of many U.S. businesses
appear bright, even though in the shorter term corporate profit growth in
general is likely to slow as margin expansion is no longer as easily attainable
and pricing flexibility is poor. Fiscal background in the U.S. has also improved
considerably in recent years, and proposed legislation to balance the budget,
with the probable inclusion of a capital gains tax reduction, should be
construed positively by markets. We therefore feel that the long-term prospects
for investment in high quality U.S. growth companies remain good, albeit that
the gains of recent years could be difficult to match in the short-term as the
economic cycle ages.
Thank you for your support and interest in the Fund.
Sincerely,
/s/ Hermann C. Schwab /s/ Mark J. Smith
Hermann C. Schwab Mark J. Smith
Chairman President
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2
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Schroder U.S. Equity Fund
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1997)
At the end of April 1997, the Fund was approximately 96.3% invested in
equities and 3.7% in cash and other assets. The portfolio retains an emphasis on
those sectors believed to offer above average sustainable growth prospects. The
Fund's heaviest concentrations are therefore in the technology, consumer
staples, healthcare and financial sectors, where exposure exceeds that of the
benchmark. Industry sectors with less robust growth outlooks, including energy,
utilities and basic materials, are de-emphasized, except where special
situations appear to present attractive investment opportunities. The portfolio
has taken profits in some technology issues in anticipation of weaker summer
demand for some products and in recognition of some high valuations. Management
also increased exposure to consumer staples and financials, while remaining
underweight in interest rate sensitive stocks as a whole. Several of the
portfolio's healthcare holdings were weak in the first quarter. We have reduced
those holdings where we see business prospects becoming uncertain but have
retained those with apparently secure market niches.
Over the six-month period many of the best performing areas within the
market were in growth sectors. More cyclical categories and utilities lagged the
market. The period was characterized by increasing volatility as investors
anticipated the first interest rate increase since 1995, which occurred in late
March, and speculated about the timing of additional rate rises. In general, the
market gained ground steadily during the period, particularly as corporate
earnings reports proved better than expected in the first quarter. The flight to
quality and earnings visibility, a characteristic of the equity market in 1996,
persisted with the advance remaining unusually concentrated in large cap stocks,
many of which now sell at the high end of their historic valuation ranges.
Technology was an especially volatile group. We continue to favor stocks in
niches with apparently rapidly accelerating demand--adding, for example, to
Cisco Systems at a time of debate about the sustainability of its competitive
edge--but have sold those considered most vulnerable to slowing demand,
including Seagate, the disk drive manufacturer. In general we consider
technology a key area of competitive advantage for the U.S. and an important
strategic sector for this fund. Our reduced exposure reflects the fact that
valuations in many cases acknowledge this and leave scope for even minor
earnings disappointments to be damaging to share prices. We similarly view
financial services as an industry with good long-term growth prospects as
demographics and an increasing sense of personal responsibility for retirement
income drive savings in the U.S. In the short-term, we are aware that rising
interest rates could pressure margins for some companies, but we do not
anticipate the modest rate increases that are likely to be particularly
damaging. We have started to establish positions in stocks such as Citicorp with
an excellent international franchise, as well as in companies with unusually low
cost distribution systems such as Travelers Group, and we would be likely to use
weakness that could result from rate increases in other stocks to add to this
group.
Looking to the future, our investment strategy is expected to remain
consistent, continuing to emphasize companies with strong niches and good
long-term growth prospects at attractive valuations. The identification of such
companies will take precedence over sector choice, although it is likely that
most investment candidates will fall in the categories mentioned above. As
earnings growth is likely to slow and margin gains prove elusive for many
companies faced with rising costs and little pricing power, we will focus on
those companies best able to control their own fortunes and continue to
eliminate holdings which disappoint. We expect recovering international earnings
to be one source of profit increases but expect growth rates in general to
moderate and companies with above average earnings potential to continue to
command a premium to the market as a whole.
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 the Fund in
understanding their investment in the Fund and do not constitute investment
advice; investors should consult their own investment professionals as to their
individual investment programs.
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Schroder U.S. Equity Fund
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PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 1997 (UNAUDITED)
INVESTMENT BY INDUSTRY
INDUSTRY % OF NET ASSETS
- ----------------------------------------------------------
Capital Goods 16.9%
Finance 16.9%
Consumer Cyclicals 15.6%
Healthcare 14.9%
Technology 14.3%
Consumer Staples 12.0%
Energy 3.9%
Basic Materials 1.8%
Cash & Other Assets 3.7%
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Total 100.0%
---------------
---------------
TOP TEN HOLDINGS
SECURITY % OF NET ASSETS
- ----------------------------------------------------------
BankAmerica Corp. 4.1%
General Electric Co. 3.8%
First Bank System, Inc. 3.3%
Philip Morris Cos. Inc. 3.1%
Allied-Signal Inc. 2.8%
Wal-Mart Stores, Inc. 2.8%
Unum Corp. 2.7%
Rockwell International Corp. 2.7%
Kimberly-Clark Corp. 2.7%
Colgate-Palmolive Co. 2.7%
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Total 30.7%
---------------
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Schroder U.S. Equity Fund
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SCHEDULE OF INVESTMENTS
AS OF APRIL 30, 1997 (UNAUDITED)
COMMON STOCK - 96.3%
SHARES VALUE US$
- ------- -----------
BASIC MATERIALS - 1.8%
4,100 Raychem Corp. $ 264,450
CAPITAL GOODS/
CONSTRUCTION - 16.9%
5,600 Allied-Signal Inc. 404,600
4,000 American Standard Cos., Inc.(a) 167,500
3,300 American Stores Co. 150,150
281 Boeing Co. 27,713
5,200 Fluor Corp. 286,000
4,900 General Electric Co. 543,287
3,800 McDonnell Douglas Corp. 225,625
5,900 Rockwell International Corp. 392,350
4,800 Sundstrand Corp. 234,000
-----------
2,431,225
-----------
CONSUMER CYCLICALS - 15.6%
2,400 HFS Inc.(a) 142,200
5,166 Home Depot Inc. 299,628
7,600 Kimberly-Clark Corp. 389,500
4,000 McDonald's Corp. 214,500
3,600 Nike, Inc. Class B 202,500
5,400 Rite Aid Corp. 248,400
6,400 Staples Inc.(a) 115,200
8,700 Viacom Inc. Class B(a) 232,725
14,100 Wal-Mart Stores Inc. 398,325
-----------
2,242,978
-----------
CONSUMER STAPLES - 12.0%
6,100 Albertson's Inc. 201,300
2,800 CPC International Inc. 231,350
3,500 Colgate-Palmolive Co. 388,500
3,700 Conagra Inc. 213,212
11,400 Philip Morris Cos. Inc. 448,875
1,900 Procter & Gamble Co. 238,925
-----------
1,722,162
-----------
ENERGY - 3.9%
5,200 Amerada Hess Corp. 252,850
5,200 Kerr-McGee Corp. 313,950
-----------
566,800
-----------
SHARES VALUE US$
- ------- -----------
FINANCIAL - 16.9%
5,100 BankAmerica Corp. $ 596,063
2,800 Citicorp 315,350
6,100 First Bank System Inc. 468,175
6,800 North Fork BanCorp. Inc. 269,450
6,900 Travelers Group Inc. 382,088
5,100 Unum Corp. 392,700
-----------
2,423,826
-----------
HEALTHCARE - 14.9%
5,200 Abbott Laboratories 317,200
3,500 Amgen Inc. 206,062
5,000 Bristol-Myers Squibb Co. 327,500
10,000 Columbia/HCA Healthcare Corp. 350,000
5,200 Genzyme Corp.(a) 120,250
8,200 Invacare Corp. 162,975
6,400 Isis Pharmaceuticals Inc.(a) 94,400
3,500 Johnson & Johnson 214,375
12,000 Pharmacia & Upjohn Inc. 355,500
-----------
2,148,262
-----------
TECHNOLOGY - 14.3%
7,700 Adaptec Inc.(a) 284,900
8,500 Autodesk Inc. 301,750
4,200 Automatic Data Processing Inc. 190,050
7,300 Cisco Systems Inc.(a) 377,775
2,100 Intel Corp. 321,563
5,200 LSI Logic Corp.(a) 198,900
4,000 Linear Technology Corp. 201,000
4,000 Sungard Data Systems Inc.(a) 177,500
-----------
2,053,438
-----------
Total Investments - 96.3%
(cost $10,613,810) 13,853,141
Other Assets Less
Liabilities - 3.7% 535,421
-----------
Total Net Assets - 100.0% $14,388,562
-----------
-----------
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(a) Non-income producing security.
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5
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Schroder U.S. Equity Fund
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STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments (Note 2):
Investments at cost $10,613,810
Net unrealized appreciation (depreciation) 3,239,331
-----------
Total Investments at value 13,853,141
Cash and Cash Equivalents (Note 2) 540,711
Interest, dividends and other receivables 17,616
-----------
Total Assets 14,411,468
-----------
LIABILITIES:
Payable to investment adviser (Note 3) 9,734
Payable to other related parties 1,157
Other payables and accrued expenses 12,015
-----------
Total Liabilities 22,906
-----------
Net Assets $14,388,562
-----------
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COMPONENTS OF NET ASSETS:
Paid-in capital $ 8,323,704
Undistributed net investment income (loss) 7,153
Accumulated net realized gain (loss) 2,818,374
Net unrealized appreciation (depreciation) on investments 3,239,331
-----------
Net Assets $14,388,562
-----------
-----------
SHARES OF BENEFICIAL INTEREST 1,664,106
NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY SHARES OF BENEFICIAL INTEREST) $8.65
</TABLE>
The accompanying notes are an integral part of the financial statements.
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6
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Schroder U.S. Equity Fund
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STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividend income $ 113,506
Interest income 8,208
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Total Investment Income 121,714
--------------
EXPENSES:
Investment advisory (Note 3) 61,190
Administration (Note 3) 8,159
Transfer agency (Note 3) 14,643
Custody 3,080
Accounting (Note 3) 18,000
Legal 526
Audit 5,500
Registration 5,170
Reporting 3,100
Trustees 371
Miscellaneous 2,982
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Total Expenses 122,721
Fees waived and expenses reimbursed (Note 5) (8,159)
--------------
Net Expenses 114,562
--------------
NET INVESTMENT INCOME (LOSS) 7,152
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments sold 2,818,374
Net change in unrealized appreciation (depreciation) on
investments (751,728)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,066,646
--------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $2,073,798
--------------
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
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7
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Schroder U.S. Equity Fund
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STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE YEAR
APRIL 30, 1997 ENDED
(UNAUDITED) OCTOBER 31, 1996
---------------- ----------------
<S> <C> <C>
NET ASSETS, BEGINNING OF PERIOD $ 17,186,636 $ 19,687,691
---------------- ----------------
OPERATIONS:
Net investment income (loss) 7,152 80,462
Net realized gain (loss) on investments sold 2,818,374 3,648,561
Net change in unrealized appreciation (depreciation) on investments (751,728) (368,123)
---------------- ----------------
Net increase (decrease) in net assets
resulting from operations 2,073,798 3,360,900
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (41,185) (158,133)
Net realized gain on investments (3,648,560) (2,560,576)
---------------- ----------------
Total distributions to shareholders (3,689,745) (2,718,709)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares 106,592 613,444
Reinvestment of distributions 2,684,379 1,811,255
Redemption of shares (3,973,098) (5,567,945)
---------------- ----------------
Net increase (decrease) in capital transactions (1,182,127) (3,143,246)
---------------- ----------------
Net increase (decrease) in net assets (2,798,074) (2,501,055)
---------------- ----------------
NET ASSETS, END OF PERIOD (INCLUDING LINE A) $ 14,388,562 $ 17,186,636
---------------- ----------------
---------------- ----------------
(A) Accumulated undistributed net investment income $ 7,153 $ 41,186
---------------- ----------------
---------------- ----------------
SHARE TRANSACTIONS
Sale of shares 11,996 66,732
Reinvestment of distributions in shares 324,592 207,563
Redemption of shares (433,553) (605,228)
---------------- ----------------
Net increase (decrease) in shares (96,965) (330,933)
---------------- ----------------
---------------- ----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
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8
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Schroder U.S. Equity Fund
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FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each
period:
<TABLE>
<CAPTION>
For the
Six Months Ended
April 30,
1997 For the Year Ended October 31,
(Unaudited) 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
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Net Asset Value, Beginning of Period $ 9.76 $ 9.41 $ 8.52 $ 11.28 $ 10.51 $ 9.56
---------------- -------- -------- -------- -------- --------
Investment Operations
Net Investment Income (Loss) -- 0.04 0.07 0.04 0.05 0.02
Net Realized and Unrealized Gain
(Loss) on Investments 1.02 1.62 1.33 (0.27) 1.86 1.61
---------------- -------- -------- -------- -------- --------
Total from Investment Operations 1.02 1.66 1.40 (0.23) 1.91 1.63
---------------- -------- -------- -------- -------- --------
Distributions From
Net Investment Income (0.02) (0.07) (0.05) (0.01) (0.04) (0.04)
Net Realized Gain on Investments (2.11) (1.24) (0.46) (2.52) (1.10) (0.58)
Paid-in Capital -- -- -- -- -- (0.06)
---------------- -------- -------- -------- -------- --------
Total Distributions (2.13) (1.31) (0.51) (2.53) (1.14) (0.68)
---------------- -------- -------- -------- -------- --------
Net Asset Value, End of Period $ 8.65 $ 9.76 $ 9.41 $ 8.52 $ 11.28 $ 10.51
---------------- -------- -------- -------- -------- --------
---------------- -------- -------- -------- -------- --------
Total Return 11.53%(a) 19.45% 17.68% (2.01)% 19.49% 17.74%
Ratio/Supplementary Data
Net Assets at End of Period (in
thousands) $ 14,389 $ 17,187 $ 19,688 $ 18,483 $ 21,865 $ 19,882
Ratios to Average Net Assets:
Expenses including
reimbursement/waiver 1.40%(b) 1.40% 1.40% 1.31% 1.18% 1.40%
Expenses excluding
reimbursement/waiver 1.50%(b) 1.43% N/A N/A N/A N/A
Net investment income (loss)
including reimbursement/waiver 0.09%(b) 0.43% 0.78% 0.41% 0.51% 0.42%
Average Commission rate (c) $ 0.0568 $ 0.0599 N/A N/A N/A N/A
Portfolio turnover rate 16.13% 56.80% 57.21% 27.43% 57.78% 31.33%
</TABLE>
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(a) Not annualized.
(b) Annualized.
(c) For the fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose average commission per share paid to brokers on the
purchase and sale of equity securities.
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9
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Schroder U.S. Equity Fund
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. ORGANIZATION
Schroder Capital Funds (Delaware) (the 'Trust') was organized as a
Maryland corporation on July 30, 1969; reorganized as a series company on
February 29, 1988, as Schroder Capital Funds, Inc.; and reorganized on
January 9, 1996, as a Delaware business trust. The Trust, which is registered
as an open-end, management investment company under the Investment Company
Act of 1940 (the 'Act'), currently has six investment portfolios. Included in
this report is the Schroder U.S. Equity Fund (the 'Fund'), a diversified
portfolio that commenced operations on October 31, 1970. Under its Trust
Instrument, 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, 1997, only Investor Shares had been issued.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally
accepted accounting principles, which require management to make estimates
and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increase and decrease in net assets
from operations during the fiscal period. Actual results could differ from
those estimates.
The following represent significant accounting policies of the Fund:
SECURITY VALUATION
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 last sale price on
the proceeding trading day or at closing mid-market prices. Securities traded
in over-the-counter markets are valued at the most recent reported mid-market
price. Prices used for valuations may be 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 Board of Trustees.
CASH EQUIVALENTS
The Fund considers all deposits and the related interest income in the
Chase Money Market Account to be cash equivalents.
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date. Interest income is
recorded on an accrual basis.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends and net capital gain, if any, are distributed to shareholders
at least annually. Distributions are based on amounts calculated in
accordance with applicable federal income tax regulations.
FEDERAL TAXES
The Fund intends to qualify and continue to qualify each year as a
regulated investment company and distribute all of its taxable income. In
addition, by distributing in each calendar year substantially all of its net
investment income, capital gain and certain other amounts, if any, the Fund
will not be subject to a federal excise tax. Therefore, no federal income or
excise tax provision is required.
EXPENSE ALLOCATION
The Trust accounts separately for the assets and liabilities and
operation of each Fund. Expenses that are directly attributable to more than
one Fund are allocated among the respective Funds. Expenses that are directly
attributable to a class are allocated to that class.
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10
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Schroder U.S. Equity Fund
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
REALIZED GAIN AND LOSS
Security transactions are recorded on trade date. Realized gain and
loss on investments sold are recorded on the basis of identified cost.
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER
The investment adviser to the Fund is Schroder Capital Management
International Inc. ('SCMI'). Pursuant to an Investment Advisory Agreement,
SCMI is entitled to receive a fee for its services at the annual rate of
0.75% of the first $100 million of the Fund's average daily net assets and
0.50% of the Fund's average daily net assets in excess of $100 million.
SUBADMINISTRATOR
The Trust has entered into a Subadministration Agreement with Forum
Administrative Services, Limited Liability Company ('Forum'). Under the
Subadministration Agreement, Forum is entitled to receive a fee payable
monthly at the annual rate of 0.10% of the Fund's average daily net assets.
Prior to November 26, 1996, the Trust, SCMI and Schroder Fund Advisors Inc.
had entered into a Subadministration Agreement with Forum Financial Services,
Inc.(Registered) ('FFSI') that had substantially similar terms except payment
for FFSI's services was made by SCMI and was not a separate expense of the
Fund.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
The transfer agent and dividend disbursing agent for the Fund is Forum
Financial Corp.(Registered) ('FFC'). The Transfer Agent is paid a transfer
agent fee in the amount of $12,000 per year, plus certain other fees and
expenses.
OTHER SERVICE PROVIDERS
The fund accountant of the Fund is FFC. For its services to the Fund,
FFC is entitled to receive from the Trust a fee of $36,000 per year plus
certain additional charges.
NOTE 4. PURCHASES AND SALES OF SECURITIES
The cost of securities purchased and the proceeds from sales of
securities (excluding short-term investments) for the six months ended April
30, 1997, aggregated $2,572,279 and $15,951,561 respectively.
For federal income tax purposes, the tax basis of investment securities
owned as of April 30, 1997 was $11,152,201. The aggregate gross unrealized
appreciation for all securities in which there was an excess of market value
over tax cost was $3,675,742, and aggregate gross unrealized depreciation for
all securities in which there was an excess of tax cost over market value was
$436,411.
NOTE 5. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
SCMI voluntarily has waived a portion of its fee and has assumed
certain expenses of the Fund so that fees paid for investment advisory
services would not exceed 0.65% of the Fund's average daily net assets on an
annual basis. The expense limitation cannot be modified or withdrawn except
by a majority vote of the Trustees of the Trust. Forum and FFC may waive
voluntarily all or a portion of their fees, from time to time. For the six
months ended April 30, 1997, fees waived by SCMI were $8,159.
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11
<PAGE>
TRUSTEES
Hermann C. Schwab
Peter E. Guernsey
John I. Howell
Clarence F. Michalis
Mark J. Smith
OFFICERS
Hermann C. Schwab
Chairman of the Board
Mark J. Smith
President
Mark Astley
Vice President
Robert G. Davy
Vice President
Margaret H. Douglas-Hamilton
Vice President
Richard Foulkes
Vice President
John Y. Keffer
Vice President
Jane Lucas
Vice President
Catherine A. Mazza
Vice President
Michael Perelstein
Vice President
Fariba Talebi
Vice President
John A. Troiano
Vice President
Ira L. Unschuld
Vice President
Alexandra Poe
Vice President
Secretary
Robert Jackowitz
Treasurer
Thomas G. Sheehan
Assistant Treasurer
Assistant Secretary
Catherine S. Wooledge
Assistant Treasurer
Assistant Secretary
Barbara Gottlieb
Assistant Secretary
Mary Kunkemueller
Assistant Secretary
Gerardo Machado
Assistant Secretary
<PAGE>
INVESTMENT ADVISER
Schroder Capital Management International Inc.
787 Seventh Avenue
New York, New York 10019
ADMINISTRATOR & DISTRIBUTOR
Schroder Fund Advisors Inc.
787 Seventh Avenue
New York, New York 10019
CUSTODIAN
The Chase Manhattan Bank
Chase MetroTech Center
Brooklyn, NY 11245
TRANSFER AND DIVIDEND
DISBURSING AGENT
Forum Financial Corp.
Two Portland Square
Portland, Maine 04101
COUNSEL
Ropes & Gray
One International Place
Boston, MA 02110-2624
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, Massachusetts 02109
This report is for the information of the shareholders of the Schroder U.S.
Equity Fund. Its use in connection with any offering of the Fund's shares is
authorized only in case of a concurrent or prior delivery of the Fund's current
prospectus.
[SCHRODERS LOGO]
Schroder
U.S. Equity
Fund
SEMI-ANNUAL REPORT
April 30, 1997
(Unaudited)
Schroder Capital Funds
(Delaware)
