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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 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, a 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 20
countries worldwide. At the end of the last calendar year, December 31, 1997,
the Schroder Group had over $175 billion in assets under management. As of March
31, 1998, the Investment Adviser, together with its U.K. affiliate, Schroder
Capital Management International Ltd., had over $29 billion under management.
June 15, 1998
Dear Shareholder,
For the semi-annual period ended April 30, 1998, the Schroder U.S. Equity
Fund underperformed the S&P 500(Registered) Index by 3.3%. The Fund rose 19.2%
while the S&P 500 rose 22.5%. The Fund's concentration on large and medium
capitalization stocks added to performance during the period as did its emphasis
on companies with solid long-term growth rates. However, the best performing
areas of the market were not in areas that met management's approval of
concentrating on growth stocks selling on relatively cheap valuations. Instead,
the best performing stocks tended to be already selling on high valuations
relative to their future growth rates.
Stock selection in technology and consumer cyclicals substantially added to
the Fund's performance, while its underweight position in the telecommunication
and healthcare sectors detracted from performance. The oil services sector,
which was the worst performing sector, was the largest contributor to the Fund's
underperformance.
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Schroder U.S. Equity Fund
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U.S. equities have experienced another strong six months, generally
shrugging off concerns about the Asian crisis that affected stock prices last
Fall. The rally has been fueled by strong economic growth and by the
continuation of benign inflation expectations. Mutual fund inflows have also
reaccelerated, contributing to this trend. Once again, large cap stocks have
produced the strongest returns. However, little attention has been paid to a
clear trend of slowing corporate profit growth. Should this trend become
increasingly apparent in both slowing revenue and through margin pressure,
earnings disappointments could become more prevalent and the equity market
increasingly selective.
Thank you for your interest in the Schroder U.S. Equity Fund.
Sincerely,
/s/ Mark J. Smith
-----------------
Mark J. Smith
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, 1998)
Q: For the semi-annual period ended April 30, 1998, which sectors of the market
were the best performers? How was the Fund positioned in these areas?
A: Healthcare, telecommunications, and consumer cyclical sectors were the best
performing sectors of the S&P 500 Index for the six months ended April 30, 1998.
Each of these three sectors posted approximately 30% gains over the semi-annual
period compared to the overall S&P 500 Index return of 22.5%. Versus the S&P 500
Index, the Fund's average weighting in consumer cyclicals was twice that of the
Index while healthcare averaged approximately half that of the Index. The Fund
had no weighting in telecommunications. Collectively, the weightings in these
three sectors detracted from performance.
Q: What is Fund management's view on interest rates and how will it affect the
Fund's positioning?
A: The Fund's positioning is driven purely by bottom-up analysis. Macroeconomic
inputs, such as interest rate predictions, are not used as strategic guides.
Interest rates do impact individual company growth rates; these changes are
reflected at a stock level in the projections made by management's analysts for
individual companies.
Q: What will be the Fund's investment strategy for the next six months?
A: The Fund will continue to focus on companies with earnings momentum in excess
of the market. At the same time, the strategy calls for paying reasonable prices
for stocks. In terms of sectors, we anticipate an increased weighting in
technology and healthcare and a reduction in capital goods, consumer staples,
energy, and financials. Technology is expected to have the largest weight
followed by financials and consumer cyclicals. The portfolio will be constructed
with approximately equal weights in each stock.
The views expressed in this report were those of the Fund's portfolio
managers as of April 30, 1998, 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 investments 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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3
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Schroder U.S. Equity Fund
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PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
SECURITY % OF NET ASSETS
- ----------------------------------------------------------
<S> <C>
BankAmerica Corp. 5.57%
General Electric Co. 5.34%
Cisco Systems, Inc. 5.17%
Wal-Mart Stores, Inc. 4.58%
Travelers Group, Inc. 4.06%
Colgate-Palmolive Co. 4.03%
Rite Aid Corp. 3.53%
Unum Corp. 3.52%
Bristol-Myers Squibb Co. 3.40%
Gap, Inc. 2.86%
---------------
Total 42.06%
---------------
---------------
<CAPTION>
INVESTMENT BY INDUSTRY
INDUSTRY % OF NET ASSETS
- ----------------------------------------------------------
<S> <C>
Basic Materials 1.38%
Capital Goods/Construction 9.39%
Consumer Cyclical 22.41%
Consumer Staples 7.55%
Energy 7.91%
Financial Services 18.90%
Healthcare 7.55%
Insurance 10.47%
Technology 11.09%
Transportation 3.22%
Cash and Other Net Assets 0.13%
---------------
Total 100.00%
---------------
---------------
</TABLE>
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4
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Schroder U.S. Equity Fund
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SCHEDULE OF INVESTMENTS
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK - 99.9%
SHARES VALUE US$
- ------- -----------
<S> <C> <C>
BASIC MATERIALS - 1.4%
4,850 Sigma Aldrich $ 193,393
-----------
CAPITAL GOODS/
CONSTRUCTION - 9.4%
8,800 General Electric Co. 749,100
4,500 Stanley Works 230,344
6,200 Tyco International Ltd. 337,900
-----------
1,317,344
-----------
CONSUMER CYCLICAL - 22.4%
2,750 CVS Corp. 202,812
4,200 Consolidated Stores Corp.(a) 168,000
4,450 Costco Cos., Inc. 248,643
3,800 Federated Department Stores,
Inc.(a) 186,913
7,800 Gap, Inc. 401,212
2,949 Home Depot, Inc. 205,325
12,500 KMart Corp.(a) 217,969
3,500 Quaker Oats Co. 182,000
8,700 Staples, Inc.(a) 214,782
4,650 Tandy Corp. 231,338
5,500 TJX Cos., Inc. 243,375
12,700 Wal-Mart Stores Inc. 642,144
-----------
3,144,513
-----------
CONSUMER STAPLES - 7.6%
6,300 Colgate-Palmolive Co. 565,031
15,400 Rite Aid Corp. 494,725
-----------
1,059,756
-----------
ENERGY - 7.9%
2,300 Cooper Cameron Corp.(a) 152,806
2,650 Diamon Offshore Drilling 134,156
4,000 ENSCO International, Inc. 113,000
5,300 Global Marine, Inc.(a) 124,881
2,250 Pennzoil Co. 144,140
4,350 Rowan Cos., Inc.(a) 128,053
2,150 Smith International, Inc.(a) 126,312
5,250 Tosco Corp. 187,031
-----------
1,110,379
-----------
<CAPTION>
SHARES VALUE US$
- ------- -----------
<S> <C> <C>
FINANCIAL SERVICES - 18.9%
7,800 Bank of Commerce $ 156,000
9,200 BankAmerica Corp. 782,000
1,850 Cincinnati Financial Corp. 235,644
3,750 Conseco, Inc. 186,093
4,600 Crescent Real Estate Equities Co. 156,975
5,000 Edwards (A.G.), Inc. 225,000
2,700 H.F. Ahmanson & Co. 205,875
6,250 MBNA Corp. 211,718
2,100 SLM Holding Corp. 89,644
3,000 State Street Corp. 214,500
2,500 T. Rowe Price 188,750
-----------
2,652,199
-----------
HEALTHCARE - 7.5%
4,500 Bristol-Myers Squibb Co. 476,438
3,300 Elan Corp. plc ADR(a) 205,013
5,300 Johnson & Johnson 378,288
-----------
1,059,739
-----------
INSURANCE - 10.5%
2,000 Allstate Corp. 192,500
2,400 Lincoln National Corp. 213,150
9,300 Travelers Group, Inc. 569,043
9,200 Unum Corp. 494,500
-----------
1,469,193
-----------
TECHNOLOGY - 11.1%
9,900 Cisco Systems Inc.(a) 725,175
4,200 Dell Computer Corp.(a) 339,150
3,600 Microsoft Corp.(a) 324,450
3,750 Parker-Hannifin Corp. 167,344
-----------
1,556,119
-----------
TRANSPORTATION - 3.2%
5,400 Kansas City Southern Industries,
Inc. 244,013
7,575 Southwest Airlines Co. 207,840
-----------
451,853
-----------
Total Common Stock
(cost $9,110,087) 14,014,488
Total Investments - 99.9%
(cost $9,110,087) 14,014,488
Other Assets Less
Liabilities - 0.1% 16,173
-----------
Total Net Assets - 100.0% $14,030,661
-----------
-----------
</TABLE>
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ADR - American Depository Receipts
(a) Non-income producing security.
The accompanying notes are an integral part of the financial statements.
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Schroder U.S. Equity Fund
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STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments (Note 2):
Investments at cost $ 9,110,087
Net unrealized appreciation (depreciation) 4,904,401
-----------
Total Investments at value 14,014,488
Receivable for securities sold 744,171
Interest, dividends and other receivables 45,006
-----------
Total Assets 14,803,665
-----------
LIABILITIES:
Payable to investment adviser (Note 3) 8,959
Payable to subadministrator (Note 3) 1,227
Payable for shares redeemed 731,681
Accrued expenses and other liabilities 31,137
-----------
Total Liabilities 773,004
-----------
Net Assets $14,030,661
-----------
-----------
COMPONENTS OF NET ASSETS:
Paid-in capital $ 7,520,938
Undistributed net investment income (loss) (30,521)
Accumulated net realized gain (loss) 1,635,843
Net unrealized appreciation (depreciation) on investments 4,904,401
-----------
Net Assets $14,030,661
-----------
-----------
SHARES OF BENEFICIAL INTEREST 1,657,775
NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY SHARES OF BENEFICIAL INTEREST) $ 8.46
</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
<TABLE>
<CAPTION>
For the Period
Ended
April 30, 1998
(unaudited)
--------------
<S> <C>
INVESTMENT INCOME:
Dividend income $ 71,548
Interest income 2,556
--------------
Total Investment Income 74,104
--------------
EXPENSES:
Investment advisory (Note 3) 52,137
Subadministration (Note 3) 6,952
Transfer agency (Note 3) 14,345
Accounting (Note 3) 18,000
Legal 512
Audit 12,910
Registration 9,974
Reporting 294
Trustees 324
Miscellaneous 5,203
--------------
Total Expenses 120,651
Fees waived (Note 5) (16,026)
--------------
Net Expenses 104,625
--------------
NET INVESTMENT INCOME (LOSS) (30,521)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments sold 1,636,421
Net change in unrealized appreciation (depreciation) on investments 748,893
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,385,314
--------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $2,354,793
--------------
--------------
</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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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Period Ended For the
April 30, 1998 Year Ended
(unaudited) October 31, 1997
-------------- ----------------
<S> <C> <C>
NET ASSETS, BEGINNING OF PERIOD $ 13,861,150 $ 17,186,636
-------------- ----------------
OPERATIONS:
Net investment income (loss) (30,521) (14,917)
Net realized gain (loss) on investments sold 1,636,421 3,881,030
Net change in unrealized appreciation (depreciation) on investments 748,893 164,449
-------------- ----------------
Net increase (decrease) in net assets resulting from operations 2,354,793 4,030,562
-------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (41,186)
Net realized gain on investments (3,866,690) (3,648,561)
-------------- ----------------
Total distributions to shareholders (3,866,690) (3,689,747)
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CAPITAL SHARE TRANSACTIONS:
Sale of shares 259,214 187,894
Reinvestment of distributions 2,861,027 2,684,379
Redemption of shares (1,438,833) (6,538,574)
-------------- ----------------
Net increase (decrease) from capital share transactions 1,681,408 (3,666,301)
-------------- ----------------
Net increase (decrease) in net assets 169,511 (3,325,486)
-------------- ----------------
NET ASSETS, END OF PERIOD (INCLUDING LINE A) $ 14,030,661 $ 13,861,150
-------------- ----------------
-------------- ----------------
(A) Accumulated undistributed net investment income (loss) $ (30,521) $ --
-------------- ----------------
-------------- ----------------
SHARE TRANSACTIONS:
Sale of shares 28,798 20,314
Reinvestment of distributions in shares 386,625 324,592
Redemption of shares (169,829) (693,796)
-------------- ----------------
Net increase (decrease) in shares 245,594 (348,890)
-------------- ----------------
-------------- ----------------
</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,
(unaudited) For the Year Ended October 31,
---------------- -----------------------------------------------
1998 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.82 $ 9.76 $ 9.41 $ 8.52 $ 11.28 $ 10.51
-------- ------- ------- ------- ------- -------
Investment Operations:
Net Investment Income (Loss) (0.02) (0.01) 0.04 0.07 0.04 0.05
Net Realized and Unrealized Gain (Loss) on
Investments 1.40 2.20 1.62 1.33 (0.27) 1.86
-------- ------- ------- ------- ------- -------
Total from Investment Operations 1.38 2.19 1.66 1.40 (0.23) 1.91
-------- ------- ------- ------- ------- -------
Distributions From:
Net Investment Income -- (0.02) (0.07) (0.05) (0.01) (0.04)
Net Realized Gain on Investments (2.74) (2.11) (1.24) (0.46) (2.52) (1.10)
Paid-in Capital -- -- -- -- -- --
-------- ------- ------- ------- ------- -------
Total Distributions (2.74) (2.13) (1.31) (0.51) (2.53) (1.14)
-------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 8.46 $ 9.82 $ 9.76 $ 9.41 $ 8.52 $ 11.28
-------- ------- ------- ------- ------- -------
-------- ------- ------- ------- ------- -------
Total Return (a) 18.24% 26.49% 19.45% 17.68% (2.01)% 19.49%
Ratio/Supplementary Data
Net Assets at End of Period (in thousands) $ 14,031 $13,861 $17,187 $19,688 $18,483 $21,865
Ratios to Average Net Assets:
Expenses including reimbursement/waiver 1.50%(b) 1.50% 1.40% 1.40% 1.31% 1.18%
Expenses excluding reimbursement/waiver 1.74%(b) 1.68% 1.43% N/A N/A N/A
Net investment income (loss) including
reimbursement/waiver (0.44)%(b) (0.09)% 0.43% 0.78% 0.41% 0.51%
Average Commission Rate Per Share (c) $ 0.0427 $0.0563 $0.0599 N/A N/A N/A
Portfolio Turnover Rate 48.67% 44.28% 56.80% 57.21% 27.43% 57.78%
</TABLE>
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(a) Total Returns would have been lower had certain expenses not been reduced
during the period shown (see Note 5).
(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 on which commissions are charged.
The accompanying notes are an integral part of the financial statements.
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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 eight 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, 1998, 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 preceeding 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. Short-term investments, having a maturity of 60 days or less,
generally are valued at amortized cost which approximates market value.
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 capital gain distributions, if any, are distributed to
shareholders at least annually. Distributions are based on amounts calculated
in accordance with applicable federal income tax regulations, which may
differ from generally accepted accounting practices. These differences are
due primarily to differing treatments of income and gain on various
investment securities held by the Fund, timing differences and differing
characterizations of distributions made by the Fund.
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10
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Schroder U.S. Equity Fund
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 of its funds. Expenses that are directly attributable to
more than one fund are allocated among the respective funds in proportion to
each fund's average net assets.
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 for
both financial statement and federal income tax purposes.
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,
payable monthly, 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. SCMI voluntarily has undertaken to waive a portion of its
fees in order to limit fees paid for the Fund's investment advisory services
to 0.65% of its average daily net assets. This fee waiver cannot be withdrawn
except by a majority vote of the Trustees of the Trust who are not affiliated
persons (as defined in the Act) of the Trust.
SUBADMINISTRATOR
The Trust has entered into a Subadministration Agreement with Forum
Administrative Services, LLC ('FAdS'). Under the Subadministration Agreement,
FAdS is entitled to receive a fee payable monthly at the annual rate of 0.10%
of the Fund's average daily net assets.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
The transfer agent and dividend disbursing agent for the Fund is Forum
Shareholder Services, LLC ('FSS'). 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
Forum Accounting Services, LLC ('FAcS') is the Fund's fund accountant.
For its services to the Fund, FAcS is entitled to receive from the Trust a
fee of $36,000 per year plus certain additional charges.
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11
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Schroder U.S. Equity Fund
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
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, 1998, aggregated $6,799,960 and $8,783,269, respectively.
For federal income tax purposes, the tax basis of investment securities
owned as of April 30, 1998 was $9,110,087 and the net unrealized appreciation
of investment securities was $4,904,401. The aggregate gross unrealized
appreciation for all securities in which there was an excess of market value
over tax cost was $5,178,325 and aggregate gross unrealized depreciation for
all securities in which there was an excess of tax cost over market value was
$273,924.
NOTE 5. WAIVER OF FEES
SCMI voluntarily has waived a portion of its fee so that the Fund's
total expenses would not exceed 1.50% 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 who are not affiliated
persons (as defined in the Act) of the Trust. SCMI, FAdS, FSS and FAcS may
waive voluntarily all or a portion of their fees, from time to time. For the
six months ended April 30, 1998 and the year ended October 31, 1997, SCMI
waived fees of $16,026 and $28,422, respectively.
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12
<PAGE>
TRUSTEES OFFICERS
Hermann C. Schwab Hermann C. Schwab
Peter E. Guernsey Chairman of the Board
John I. Howell Mark J. Smith
Clarence F. Michalis President
Mark J. Smith Mark Astley
David N. Dinkins Vice President
Peter S. Knight Robert G. Davy
Sharon L. Haugh Vice President
Margaret H. Douglas-Hamilton
Vice President
Richard R. Foulkes
Vice President
John Y. Keffer
Vice President
Jane P. Lucas
Vice President
Catherine A. Mazza
Vice President
Michael Perelstein
Vice President
Fariba Talebi
Vice President
Ira L. Unschuld
Vice President
Alexandra Poe
Secretary
Fergal Cassidy
Treasurer
<PAGE>
INVESTMENT ADVISER
Schroder Capital Management International Inc.
787 Seventh Avenue, 34th Floor
New York, New York 10019
DISTRIBUTOR
Schroder Fund Advisors Inc.
787 Seventh Avenue, 34th Floor
New York, New York 10019
CUSTODIAN
The Chase Manhattan Bank
Chase MetroTech Center
Brooklyn, New York 11245
TRANSFER AND DIVIDEND
DISBURSING AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, Maine 04101
COUNSEL
Ropes & Gray
One International Place
Boston, Massachusetts 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, 1998
(Unaudited)
Schroder Capital Funds (Delaware)
