<PAGE>
SCHRODER CAPITAL FUNDS (DELAWARE)
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
INVESTOR SHARES
Supplement Dated January 16, 1997 to
Prospectus Dated November 1, 1996
PORTFOLIO MANAGEMENT
The fourth paragraph in the section "Management of the Fund -- Investment
Adviser and Portfolio Manager", on Page 13 of the Prospectus, is replaced in its
entirety by the following paragraph:
Richard R. Foulkes, a Vice President of the Trust and Deputy Chairman of SCMI,
with the assistance of an SCMI investment committee, is primarily responsible
for the day-to-day management of the Portfolio's investments. Mr. Foulkes has
managed the Portfolio's investment portfolio since January 1997. Mr. Foulkes has
been a Director and Executive Vice President of Schroder Capital Management
International Ltd. since 1989 and a Deputy Chairman/Executive Vice President of
Schroder Capital Management Inc. since October 1995.
<PAGE>
SCHRODER CAPITAL FUNDS (DELAWARE)
SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
ADVISOR SHARES
Supplement Dated January 16, 1997 to
Prospectus Dated November 1, 1996
PORTFOLIO MANAGEMENT
The fourth paragraph in the section "Management of the Fund -- Investment
Adviser and Portfolio Manager", on Page 13 of the Prospectus, is replaced in its
entirety by the following paragraph:
Richard R. Foulkes, a Vice President of the Trust and Deputy Chairman of SCMI,
with the assistance of an SCMI investment committee, is primarily responsible
for the day-to-day management of the Portfolio's investments. Mr. Foulkes has
managed the Portfolio's investment portfolio since January 1997. Mr. Foulkes has
been a Director and Executive Vice President of Schroder Capital Management
International Ltd. since 1989 and a Deputy Chairman/Executive Vice President of
Schroder Capital Management Inc. since October 1995.
