[LOGO] Schroders
Schroder
Emerging Markets Fund
Institutional Portfolio
SEMI-ANNUAL REPORT
APRIL 30, 1998
(Unaudited)
Schroder Capital Funds (Delaware)
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO
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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 long-term capital appreciation by
investing in equity and debt securities of issuers domiciled or doing business
in emerging market countries, in regions such as Southeast Asia, Latin America,
and Eastern and Southern Europe.
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 20
countries worldwide. As of 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, of which, over $6
billion was invested in the emerging markets.
June 15, 1998
Dear Shareholder,
The Schroder Emerging Markets Fund Institutional Portfolio returned 3.7% for
Investor Shares and 3.6% for Advisor Shares for the six month period ending
April 30, 1998 (total return does not reflect the deduction of the purchase and
redemption fee of 0.50% respectively). This compares with the unmanaged,
customized Morgan Stanley Capital International Emerging Markets Free (excluding
Malaysia) Index (the "Index"), which returned 5.1% for the same period.
Analyzing performance, the Fund's overweight holdings (versus the Index) in
Hungary and Portugal and the underweight position in Indonesia were positive
contributors to performance but were offset by overweighting China and
underweighting Brazil, Greece and South Africa. Stock selection was strong in
China and Taiwan but poor returns in Brazil, India and Mexico caused an overall
negative stock selection impact.
While the Asian crisis brought some economic slowdown to Latin America,
management considers there to be great value in the region. However, they are
wary of increasing positions there due to the present global volatility. Mexico
and Brazil remain the region's favored markets as well as the Fund's top two
country weights. In Mexico, governmental structure and policies have led to
market stability while Brazilian companies are currently attractively valued and
the government's privatization program is on track. The winner of Brazil's
presidential election, scheduled for later this year, will need to tackle the
fiscal deficit for the market to perform well on a twelve-month view.
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO
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Management is likely to maintain it's current strategy for the remainder of the
fiscal year with particular caution being paid to Southeast Asia. We do believe
that the long-term prospects for many emerging markets remain solid. We continue
to seek to identify those companies that exhibit a strong balance sheet, growing
market share, and franchise value that are best positioned to survive the recent
market volatility.
Thank you for your interest in the Schroder Emerging Markets Fund Institutional
Portfolio.
Sincerely,
/s/ M. J. Smith
Mark J. Smith
President
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO
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MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 1998)
Q: CERTAIN ASIAN MARKETS REBOUNDED SINCE THEIR DRAMATIC FALLS IN LATE 1997. ARE
THERE ANY PARTICULAR MARKETS THAT HAVE COME THE FURTHEST TO BEST ADDRESS THE
ECONOMIC ISSUES?
A: Korea and Thailand have been taking the most positive steps in restructuring
their economies. Both countries are complying with the IMF in their attempts to
reschedule external debt and both raised interest rates to stabilize their
currencies after dramatic falls. As the currencies recovered, both governments
then initiated tough reforms of the financial systems in an attempt to enforce
stringent Western standards of regulation. Bankruptcy laws were tightened,
forcing the closure of many unviable businesses and bank recapitalization
programs have begun. Corporate restructuring is now vital, especially for the
conglomerates in Korea. This has been facilitated by a recovery of foreign
investment, such as Volvo's decision to buy a subsidiary of Samsung. Both
countries' equity markets have recovered sharply from their lows but the
restructuring process will take a long time for real economic and market
stability to return.
Q: HAS FUND MANAGEMENT CHANGED ITS VIEWS ON LATIN AMERICA AS A RESULT OF THE
ASIAN CRISIS?
A: As the depth and gravity of the economic and structural problems faced by the
Asian countries became apparent in the latter half of 1997, management
significantly reduced positions in Asia in light of uncertainty with regard to
future growth prospects. Over a six-month period, the cash proceeds from these
sales were reinvested in Latin America, in particular Brazil, because we
believed Latin America would be less severely affected. The Brazilian
government's swift response to the crisis with a tight fiscal package to protect
the currency was notably effective. Mexican consumer stocks have been favored by
the Fund as the domestic economy has remained strong, supported by the U.S.
economy which has not been greatly impacted by the crisis. Smaller economies
were more severely affected, principally due to the fall in commodity prices
(for example, Chile and Venezuela's export dependence on copper and oil
respectively) and positions in those countries were reduced, as this situation
is expected to continue.
Q: DO STOCK VALUATIONS REMAIN ATTRACTIVE IN EMERGING MARKETS WHEN COMPARED TO
THOSE IN DEVELOPED MARKETS?
A: Management believes that the valuation case for emerging markets is
attractive. On a relative basis, emerging markets now look cheap considering
their superior long-term earnings growth prospects. Certain markets in Latin
America appear inexpensive and look fundamentally stronger than most Asian
markets, which need to undergo painful restructuring before earnings can recover
and improve valuation measures. Valuations in the EMEA countries (Europe, Middle
East and Africa) are also generally attractive and are supported by visible
earnings growth potential.
Q: WHAT IS THE FUND'S INVESTMENT STRATEGY GOING FORWARD?
A: The Fund's strategy is unlikely to change over the next six months.
Management remains particularly cautious about the Southeast Asian markets,
which remain heavily dependent on the success of economic restructuring. The
violent instability in Indonesia and the continuing weakness of the Japanese
economy depress the region's prospects. Certain Latin American markets appear
more attractive. The Fund's preferred markets are Mexico and Brazil. Within the
EMEA region, economic growth remains robust in Hungary and Poland and we
continue to find attractive and well-managed companies there. Russia remains
beset by political instability and is therefore, likely to remain underweight
versus the Index until management sees clearer signs of tangible reforms. Now
that Portugal has been reclassified as a developed market, the Fund will
continue to reduce its overweight position in the country.
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
3
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO
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<TABLE>
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 1998 (UNAUDITED)
<S> <C> <C> <C>
TOP TEN HOLDINGS INVESTMENT BY INDUSTRY
Security % of Net Assets Industry % of Net Assets
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Telecomunicacoes Brasileiras -Telebras (Braz) 3.60% Capital Equipment 7.99%
Telefonos De Mexico ADR SA (Mex) 2.19% Consumer Durables 2.80%
Petrol Brasileiro - Petrobras (Braz) 2.13% Consumer Non-Durables 5.72%
Cemex, S.A. de C.V. (Mex) 1.70% Energy 19.10%
Hellenic Bottling Co. SA (Greece) 1.55% Finance 15.56%
Centrais Electricas Brasileiras - Eletrobras (Braz) 1.45% Materials 8.04%
Cifra SA de CV (Mex) 1.43% Multi-Industry 6.09%
Fomento Economico Mexicano de CV (Mex) 1.42% Retail 3.78%
Semapa - Sociedade de Investimento (Port) Services 22.74%
Gestao SGPS SA (Port) 1.36% Telecommunications 5.69%
YPF Sociedade Anonima ADR (Arg) 1.36% Cash & Cash Equivalents 2.49%
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Total 18.19% Total 100.0%
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<S> <C> <C>
COUNTRY WEIGHTINGS
Country % of Net Assets MSCI EMF ex-Malaysia Index
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Argentina 4.22% 4.70%
Botswana 0.57% 0.00%
Brazil 15.86% 17.20%
Chile 3.76% 3.70%
China 0.82% 0.80%
Croatia 0.38% 0.00%
Czech Republic 0.83% 1.10%
Egypt 0.73% 0.00%
Greece 3.37% 4.50%
Hong Kong 2.51% 0.00%
Hungary 3.34% 1.50%
India 8.51% 7.10%
Indonesia 1.09% 1.40%
Israel 3.27% 2.80%
Malaysia 0.78% 0.00%
Mauritius 0.54% 0.00%
Mexico 12.81% 12.60%
Philippines 1.75% 1.70%
Pakistan 0.76% 0.70%
Peru 0.32% 1.20%
Poland 2.62% 0.70%
Portugal 4.73% 0.00%
Korea, Republic of 4.53% 2.50%
Russia 1.88% 5.10%
Slovakia 0.07% 0.00%
South Africa 8.99% 14.00%
Taiwan 4.43% 9.20%
Thailand 1.39% 2.30%
Turkey 1.68% 3.10%
Venezuela 0.74% 1.10%
Zimbabwe 0.23% 0.00%
Cash & Cash Equivalents 2.49% 0.00%
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Total 100.0%
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</TABLE>
4
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
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STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)
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<S> <C>
ASSETS:
Investments (Notes 1 and 2):
Investment in Schroder Emerging Markets Fund Institutional
Portfolio (the "Portfolio") $ 207,402,636
Organization cost, net of amortization (Note 2) 11,533
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Total Assets 207,414,169
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LIABILITIES:
Payable to administrator (Note 3) 13,047
Payable to subadministrator (Note 3) 8,530
Accrued expenses and other liabilities 35,453
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Total Liabilities 57,030
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Net Assets $ 207,357,139
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COMPONENTS OF NET ASSETS:
Paid-in capital $ 209,925,845
Undistributed net investment income (loss) 861,883
Accumulated net realized gain (loss) (23,535,678)
Net unrealized appreciation (depreciation) on investments 20,105,089
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Net Assets $ 207,357,139
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NET ASSETS BY CLASS:
Investor Class $ 180,365,223
Advisor Class 26,991,916
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Net Assets $ 207,357,139
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SHARES OF BENEFICIAL INTEREST:
Investor Class 15,755,974
Advisor Class 2,347,273
NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS / SHARES OF BENEFICIAL INTEREST):
Investor Class $ 11.45
Advisor Class $ 11.50
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
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STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 1998 (UNAUDITED)
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<S> <C>
NET INVESTMENT INCOME ALLOCATED FROM THE PORTFOLIO (PORTFOLIO):
Dividend income (net of foreign withholding taxes of $203,971) $ 1,969,579
Interest income 434,073
Net expenses (1,152,796)
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Net Investment Income Allocated from the Portfolio 1,250,856
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EXPENSES:
Administration (Note 3) 48,880
Subadministration (Note 3) 48,880
Transfer agency (Note 3) 17,415
Shareholder services - Advisor Shares (Note 3) 31,544
Accounting (Note 3) 6,000
Legal 7,642
Audit 7,080
Registration 11,015
Reporting 794
Trustees 4,586
Amortization of organization costs (Note 2) 3,000
Miscellaneous 14,706
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Total Expenses 201,542
Fees waived and expenses reimbursed (Note 4) (4,000)
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Net Expenses 197,542
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NET INVESTMENT INCOME (LOSS) 1,053,314
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NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ALLOCATED FROM THE PORTFOLIO:
Net realized gain (loss) on investments sold (A) (12,457,776)
Net realized gain (loss) on foreign currency transactions (312,966)
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Net realized gain (loss) on investments and foreign
currency transactions (12,770,742)
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Net change in unrealized appreciation (depreciation) on investments (B) 18,201,926
Net change in unrealized appreciation (depreciation) on foreign
currency transactions (14,039)
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Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions 18,187,887
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NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ALLOCATED FROM THE PORTFOLIO 5,417,145
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NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,470,459
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(A) Net of Indian capital loss tax of $103,338.
(B) Net of deferred Indian capital gain tax of $69,470.
The accompanying notes are an integral part of the financial statements.
6
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
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STATEMENTS OF CHANGES IN NET ASSETS
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<S> <C> <C>
FOR THE
PERIOD ENDED FOR THE
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
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NET ASSETS, BEGINNING OF PERIOD $ 204,715,762 $ 167,570,050
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OPERATIONS:
Net investment income (loss) 1,053,314 1,084,832
Net realized gain (loss) on investments sold (12,770,742) (4,692,069)
Net change in unrealized appreciation (depreciation) on investments 18,187,887 242,848
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Net increase (decrease) in net assets resulting from operations 6,470,459 (3,364,389)
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DISTRIBUTION TO SHAREHOLDERS FROM:
Net investment income - Investor Shares (596,860) (150,511)
Net investment income - Advisor Shares (26,384) (10,884)
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Total distributions to shareholders (623,244) (161,395)
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CAPITAL SHARE TRANSACTIONS: (NOTE 5)
Sale of shares - Investor Class * 28,954,939 38,703,940
Sale of shares - Advisor Class * 1,056,417 28,015,324
Reinvestment of distributions - Investor Class 355,423 87,690
Reinvestment of distributions - Advisor Class - 10,884
Redemption of shares - Investor Class * (33,275,850) (26,043,240)
Redemption of shares - Advisor Class * (296,767) (103,102)
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Net increase (decrease) from capital share transactions (3,205,838) 40,671,496
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Net increase (decrease) in net assets 2,641,377 37,145,712
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NET ASSETS, END OF PERIOD (INCLUDING LINE A) $ 207,357,139 $ 204,715,762
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(A) Accumulated undistributed net investment income (loss) $ 861,883 $ 431,813
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SHARE TRANSACTIONS:
Sale of shares - Investor Class 2,663,555 3,082,070
Sale of shares - Advisor Class 95,022 2,284,352
Reinvestment of distributions in shares - Investor Class 32,460 7,929
Reinvestment of distributions in shares - Advisor Class 2,413 979
Redemption of shares - Investor Class (3,139,985) (2,043,429)
Redemption of shares - Advisor Class (26,312) (9,181)
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Net increase (decrease) in shares (372,847) 3,322,720
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(*) Includes purchase and redemption fees (Note 5).
The accompanying notes are an integral part of the financial statements.
7
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
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FINANCIAL HIGHLIGHTS - INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding throughout
each period:
<TABLE>
<S> <C> <C> <C> <C>
For the For the
Period Ended Years Ended
April 30, October 31,
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1998 (a) 1997 1996 (b) 1995 (c)
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Net Asset Value, Beginning of Period $11.08 $11.06 $10.63 $10.00
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Investment Operations
Net Investment Income (Loss) 0.06(d) 0.06(d) 0.02(d) 0.02
Net Realized and Unrealized Gain (Loss) on Investments 0.35 (0.03) 0.43(e) 0.61
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Total from Investment Operations 0.41 0.03 0.45 0.63
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Distributions From
Net Investment Income (0.04) (0.01) (0.02) -
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Total Distributions (0.04) (0.01) (0.02) -
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Net Asset Value, End of Period $11.45 $11.08 $11.06 $10.63
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Total Return (f)(g) 3.69%(h) 0.27% 4.22% 6.30%
Ratio/Supplementary Data
Net Assets at End of Period (in thousands) $180,365 $179,436 $167,570 $18,423
Ratios to Average Net Assets:
Expenses including reimbursement/waiver of fees 1.35%(d) 1.41%(d) 1.60%(d) 1.58%(i)
Expenses excluding reimbursement/waiver of fees 1.60%(d) 1.62%(d) 1.71%(d) 2.45%(i)
Net investment income (loss) including reimbursement/waiver of fees 1.11%(d) 0.51%(d) 0.36%(d) 0.46%(i)
Average Commission Rate Per Share (j) $0.0017 $0.0020 $0.0008 N/A
Portfolio Turnover Rate (k) 26.19% 43.13% 102.70% 44.10%
</TABLE>
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(a) Unaudited.
(b) On May 17, 1996, the Fund began offering two classes of shares, Investor
Shares and Advisor Shares, and all then outstanding shares of the Fund were
designated as Investor Shares.
(c) The Fund commenced operations on March 31, 1995 and converted to Core and
Gateway(R) on November 1, 1995.
(d) Includes the Fund's proportionate share of income and expenses of the
Portfolio.
(e) The amount shown for a share outstanding does not correspond with the
aggregate net gain (loss) on investments for the period ended due to the
timing of sales and repurchases of the Fund shares in relation to
fluctuating market values of the investments of the Fund.
(f) Total return calculation does not include the purchase or redemption fee of
0.50%, respectively.
(g) Total return would have been lower had certain expenses not been reduced
during the periods shown. (See Note 4)
(h) Not annualized
(i) Annualized.
(j) For the fiscal year beginning on or after September 1, 1995, the Fund is
required to disclose average commission per share paid by the Portfolio to
brokers on the purchase and sale of Portfolio's equity securities on which
commissions are charged.
(k) Portfolio turnover represents the rate of portfolio activity. The rate
after October 31, 1995 represents the portfolio turnover rate of the
Portfolio.
The accompanying notes are an integral part of the financial statements.
8
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
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FINANCIAL HIGHLIGHTS - ADVISOR SHARES
Selected per share data and ratios for an Advisor share outstanding throughout
the period:
<TABLE>
<S> <C> <C>
For the
For the Period
Period Ended November 21, 1996
April 30, to October 31,
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1998 (a) 1997 (b)
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Net Asset Value, Beginning of Period $11.11 $11.28
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Investment Operations
Net Investment Income (Loss) 0.05(c) 0.03(c)
Net Realized and Unrealized Gain (Loss) on Investments 0.35 (0.19)
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Total from Investment Operations 0.40 (0.16)
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Distributions From
Net Investment Income (0.01) (0.01)
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Total Distributions (0.01) (0.01)
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Net Asset Value, End of Period $11.50 $11.11
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Total Return (d)(e)(f) 3.62% (1.42)%
Ratio/Supplementary Data
Net Assets at End of Period (in thousands) $26,992 $25,280
Ratios to Average Net Assets:
Expenses including reimbursement/waiver of fees 1.60%(c) 1.66%(c)(g)
Expenses excluding reimbursement/waiver of fees 1.88%(c) 2.03%(c)(g)
Net investment income (loss) including reimbursement/waiver of fees 0.84%(c) 0.27%(c)(g)
Average Commission Rate Per Share (h) $0.0017 $0.0020
Portfolio Turnover Rate (i) 26.19% 43.13%
</TABLE>
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(a) Unaudited.
(b) Advisor Class shares were first issued on November 21, 1996.
(c) Includes the Fund's proportionate share of income and expenses of the
Portfolio.
(d) Total return calculation does not include the purchase or redemption fee of
0.50%, respectively.
(e) Not Annualized.
(f) Total return would have been lower had certain expenses not been reduced
during the period shown. (See Note 4)
(g) Annualized.
(h) Amount represents the average commission per share paid to brokers on the
purchase and sale of Portfolio's equity securities for which commissions
are charged.
(i) Portfolio turnover represents the rate of portfolio activity of the
Portfolio.
The accompanying notes are an integral part of the financial statements.
9
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (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 Emerging Markets Fund Institutional Portfolio (the "Fund"), a
non-diversified portfolio that commenced operations on March 31, 1995. 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, both Investor Shares and Advisor Shares had been
issued.
MASTER-FEEDER ARRANGEMENT - Effective November 1, 1995, the Fund has sought to
achieve its investment objective by investing all of its investable assets in a
separate non-diversified portfolio, Schroder Emerging Markets Fund Institutional
Portfolio (the "Portfolio"), of Schroder Capital Funds ("Schroder Core") that
has the same investment objective and substantially similar investment policies
as the Fund. This is commonly referred to as a master-feeder arrangement.
Schroder Core also is registered as an open-end, management investment company.
The Fund may withdraw its investment from the Portfolio at any time if the
Trust's Board of Trustees ("Trustees") determines that it is in the best
interest of the Fund and its shareholders to do so. The Fund accounts for its
investment in the Portfolio as a partnership investment and records daily its
share of the Portfolio's income, expenses and realized and unrealized gain and
loss. The Portfolio's financial statements are included on pages 13 to 33 in
this report and should be read in conjunction with the Fund's financial
statements. As of April 30, 1998, the Fund owns approximately 73.22% of interest
in the Portfolio and may be deemed under certain circumstances, for purposes of
the Act, to control the Portfolio.
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 - The Trust determines the net asset value per share of the
Fund as of the close of trading on the New York Stock Exchange on each Fund
business day. Valuation of securities held in the Portfolio are discussed in the
Notes to the Financial Statements of the Portfolio.
INVESTMENT INCOME AND EXPENSES - The Trust records daily its pro rata share of
the Portfolios' income, expenses and realized and unrealized gain and loss. In
addition, the Fund accrues its own expenses.
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 principles.
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.
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.
10
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SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Under the applicable foreign tax law, a withholding tax may be imposed on
interest, dividends, and capital gains at various rates. Indian tax regulations
require that taxes be paid on capital gains realized by the Fund. At April 30,
1998, the Fund decreased net unrealized appreciation on investments by the
estimated tax liability attributable to Indian investments of $69,470 and
decreased net realized losses on investments by $101,338 for taxes incurred on
losses realized from Indian investments.
EXPENSE ALLOCATION - The Trust accounts separately for the assets and
liabilities and operation 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 net assets. Expenses that are directly attributable to a class are
allocated to that class.
ORGANIZATIONAL COSTS - Costs incurred by the Fund in connection with its
organization amortized on a straight line basis over a five year period.
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISERS - The Fund currently invests all of its assets in the
Portfolio, which retains Schroder Capital Management International Inc. ("SCMI")
to act as investment adviser pursuant to an Investment Advisory Agreement. See
Notes to the Financial Statements of the Portfolio.
ADMINISTRATOR AND SUBADMINISTRATOR - The administrator is Schroder Fund Advisors
Inc. ("Schroder Advisors") and the Subadministrator is Forum Administrative
Services, LLC ("FAdS"). For its services, Schroder Advisors is entitled to
receive compensation at an annual rate, payable monthly, of 0.05% of average
daily net assets of the Fund. For its services, FAdS is entitled to receive
compensation at an annual rate, payable monthly, of 0.05% of average daily net
assets of the Fund.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT - The transfer agent and dividend
disbursing agent for the Fund is Forum Shareholder Services, LLC ("FSS"). FSS is
paid a transfer agent fee in the amount of $12,000 per class per year, plus
certain other fees and expenses.
SHAREHOLDER SERVICE PLAN AND SERVICE ORGANIZATIONS - The Trust has adopted a
Shareholder Service Plan (the "Plan") for the Advisor Share Class under which
Schroder Advisors is authorized to pay service organizations a servicing fee.
Payments under the Plan may be for various types of services. The maximum annual
amount payable under the Plan is 0.25% of the Fund's average net assets
attributable to the Advisor Shares.
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 Fund a fee of $12,000 per year.
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
Schroder Advisors has voluntarily waived a portion of its fee and has assumed
certain expenses of the Fund so that its expenses chargeable to Investor Shares
and Advisor Shares, including indirect expenses borne by the Fund as a result of
investing in the Portfolio, would not exceed an annual rate of 1.45% and 1.70%,
respectively, of the average daily net assets attributable to Investor Shares
and Advisor Shares, respectively. The expense limitations 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 period ended April 30, 1998, FSS waived fees of $4,000. For the year
ended October 31, 1997, Schroder Advisors reimbursed expenses of $19,679 and FSS
waived fees of $8,705.
11
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (FUND)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
NOTE 5. PURCHASE AND REDEMPTION FEES
Purchases and redemptions of Fund shares are subjected to a transaction fee of
0.50% of the amount invested and the net asset value redeemed, respectively.
These charges are designed to cover the transaction costs the Portfolio incurs
(either directly or indirectly as a result of Fund's investment in the
Portfolio) as a result of investments or the redemption of Fund shares. These
charges, which are not sales charges, are assessed by the Fund and paid to the
Portfolio, not Schroder Advisors or any other entity. The purchase and
redemption fees are included in the Statements of Changes in Net Assets shares
sold and shares redeemed amounts, respectively, and are included as part of
Paid-in Capital in the Statement of Assets and Liabilities. The purchase and
redemption fee for each class are as follows:
<TABLE>
<S> <C> <C> <C> <C>
Investor Shares Advisor Shares
--------------- --------------
For the Periods Ended Purchase Redemption Purchase Redemption
--------------------- -------- ---------- -------- ----------
April 30, 1998 $138,688 $ 168,053 $ 5,284 $ 1,618
October 31, 1997 192,175 130,890 140,252 566
</TABLE>
NOTE 6. FEDERAL INCOME TAXES
As of April 30, 1998, the Fund has capital loss carryovers available to offset
future capital gains as follows:
Carryovers expire on October 31, 2003.............................. $ 159,533
Carryovers expire on October 31, 2004.............................. 6,451,242
Carryovers expire on October 31, 2005.............................. 3,251,813
NOTE 7. BENEFICIAL INTEREST
For the period ended April 30, 1998, there were 3 unaffiliated shareholders each
owning more than 10% of the Fund's net assets totaling 66.21%.
12
<PAGE>
- --------------------------------------------------------------------------------
Schroder Emerging Markets Fund Institutional Portfolio (Portfolio)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF APRIL 30, 1998 (UNAUDITED)
STOCKS AND WARRANTS - 97.5%
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
ARGENTINA - 4.2%
COMMON STOCK
360,000 Astra Cia Argentina De Petrolo SA
ENERGY $ 648,065
33,957 Banco de Galicia y Buenos Aires SA de CV ADR
FINANCE 831,949
279,500 IRSA Inversiones y Representaciones SA
FINANCE 1,084,568
165,114 Compania Naviera Perez Companc SA
MULTI-INDUSTRY 999,039
48,000 Quilmes Industrial SA ADR
CONSUMER NON-DURABLE 531,001
259,200 Telecom Argentina Stet - Fran Tel SA
TELECOMMUNICATIONS 1,845,688
258,000 Telefonica de Argentina SA
TELECOMMUNICATIONS 990,819
30,300 Telefonica de Argentina SA ADR
TELECOMMUNICATIONS 1,168,444
110,200 YPF Sociedad Anonima ADR
ENERGY 3,843,226
-------------------
11,942,799
-------------------
BOTSWANA - 0.5%
COMMON STOCK
1,003,000 Sechaba Ord(a)
SERVICES 1,604,220
-------------------
BRAZIL - 15.9%
COMMON STOCK
99,200,000 Centrais Eletricas Brasileiras SA - Eletrobras(a)
ENERGY 4,118,881
1,927,000 Companhia Cervejaria Brahma
SERVICES 1,254,910
37,000,000 Companhia Energetica de Minas Gerais
SERVICES 1,778,846
88,000 Companhia Paranaense de Energia-Cope
ENERGY 1,254,000
16,440,000 Companhia Paulista de Forca e Luz - CPFL
ENERGY 2,112,485
3,680,000 Light - Servicos de Electricidade SA
ENERGY 1,407,345
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
BRAZIL (CONCLUDED)
COMMON STOCK
40,423,000 Telecomunicacoes Brasileiras SA - Telebras
TELECOMMUNICATIONS $ 3,985,764
51,000 Telecomunicacoes Brasileiras SA Telebras ADR
TELECOMMUNICATIONS 6,212,438
41,000 Unibanco-Uniao Bco(b)
FINANCE 1,629,750
PREFERRED STOCK
176,753,836 Banco Brasileiro de Decontos SA
FINANCE 1,622,304
19,000,000 Banco Nacional SA(a)(b)
FINANCE 0
65,510,000 Centrais Eletricas Brasileiras SA - Eletrobras
ENERGY 2,943,369
108,300 Companhia Vale Rio Doce
FINANCE 2,603,365
1,180,250 IKPC - Industrias Klabin de Papel e Celulose SA
SERVICES 753,132
1,345,000 Itausa Investimentos Itau SA
MULTI-INDUSTRY 1,128,672
23,790,000 Petrol Brasileiro - Petrobras
ENERGY 6,020,284
8,607,062 Telecomunicacoes de Sao Paulo SA - TELESP
TELECOMMUNICATIONS 2,911,654
2,464,858 Telecomunicacoes do Parana SA-Telepar
TELECOMMUNICATIONS 1,368,168
6,789,194 Telecomunicacoes do Rio de Janeiro SA-Telerj
CAPITAL EQUIPMENT 1,023,720
115,530 Usinas Siderurgicas de Minas Gerais SA
CAPITAL EQUIPMENT 797,804
47,200 Vale Rio Doce B shares(b)
MATERIALS 0
-------------------
44,926,891
-------------------
CHILE - 3.8%
COMMON STOCK
23,500 Administradora de Fondos de Pensiones Provida SA ADR
MATERIALS 420,063
29,700 Banco de A Edwards SP ADR
FINANCE 477,058
78,400 Banco Santander Chile ADR
FINANCE 1,097,600
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
CHILE (CONCLUDED)
52,200 Chilectra SA
ENERGY $ 1,415,825
27,700 Compania Cervecerias Unidas SA
SERVICES 765,212
116,925 Compania de Telecomunicacion de Chile SA ADR
TELECOMMUNICATIONS 2,930,434
24,400 Distribucion y Servico D&S SA ADR
RETAIL 430,050
61,841 Gener SA
ENERGY 1,383,693
2,800 Maderas y Sinteticos Sociedad Anonima SA ADR
MULTI-INDUSTRY 26,775
26,800 Quimica y Minera Chile SA ADR
MATERIALS 1,164,125
32,000 Quinenco SA ADR
MULTI-INDUSTRY 330,001
12,928 Santa Isabel SA ADR
SERVICES 213,312
-------------------
10,654,148
-------------------
CHINA, PEOPLES REPUBLIC OF - 0.4%
COMMON STOCK
1,742,000 Beijing Datang Power Gen H
ENERGY 708,395
1,163,000 Qingling Motors Co.
SERVICES 502,969
-------------------
1,211,364
-------------------
CROATIA - 0.4%
COMMON STOCK
60,060 Pliva DD GDR
CONSUMER GOODS 1,076,575
-------------------
CZECH REPUBLIC - 0.8%
COMMON STOCK
11,850 SPT Telekom AS(a)
ENERGY 1,723,734
2,430 Tabak AS
CONSUMER GOODS 639,522
-------------------
2,363,256
-------------------
</TABLE>
15
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
EGYPT - 0.7%
COMMON STOCK
122,000 Commercial International Bank GDR
FINANCE $ 2,067,900
-------------------
GREECE - 3.4%
COMMON STOCK
18,680 Alpha Credit Bank
FINANCE 1,969,675
5,000 Delta Informatics SA
SERVICES 190,812
117,860 Hellenic Bottling Co. SA
CONSUMER GOODS 4,385,382
105,240 Hellenic Telecom Organization
SERVICES 3,012,164
-------------------
9,558,033
-------------------
HONG KONG - 2.9%
COMMON STOCK
676,000 Anhui Expressway Co. Ltd.
CAPITAL EQUIPMENT 107,341
366,000 Cheung Kong Infrastructure Holdings
CAPITAL EQUIPMENT 928,454
1,849,000 China Resources Beijing Land
FINANCE 978,674
411,000 China Telecom (Hong Kong)(a)
SERVICES 779,967
113,000 Citic Pacific Ltd.
MULTI-INDUSTRY 347,194
336,000 Cosco Pacific Ltd.
SERVICES 227,728
316,000 Founder Hong Kong Ltd.
SERVICES 263,126
426,000 Guangnan Holdings
SERVICES 274,977
1,139,000 Guangnan Railway
SERVICES 213,211
71,400 Huaneng Power International Inc. ADR(a)
ENERGY 1,570,921
630,000 Legend Holdings Ltd.(a)
SERVICES 270,426
441,000 New World Infrastructure(a)
FINANCE 947,916
</TABLE>
16
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
HONG KONG (CONCLUDED)
COMMON STOCK
126,000 Ng Fung Hong Ltd.
SERVICES $ 113,864
4,412,000 Yanzhou Coal Mining Co., Ltd.(a)
SERVICES 1,153,393
-------------------
8,177,192
-------------------
HUNGARY - 3.3%
COMMON STOCK
30,460 BorsodChem RT
MATERIALS 1,155,809
18,200 Gedeon Richter RT
CONSUMER GOODS 1,942,850
72,848 Matav RT ADR(a)
SERVICES 1,999,016
53,230 MOL Magyar Olaj GDR
ENERGY 1,624,846
19,720 Magyar Olag-Es Gazipare GDR(a)
OTHER 601,953
23,770 OTP Bank GDR
FINANCE 1,143,337
25,599 Pannonplast RT
MATERIALS 1,086,067
-------------------
9,553,878
-------------------
INDIA - 8.5%
COMMON STOCK
16,000 Associated Cement Co.(a)
MATERIALS 629,888
16,000 BSES Ltd.
ENERGY 74,209
90,000 Bajaj Auto Ltd.(a)
CAPITAL EQUIPMENT 1,350,057
283,000 Bharat Heavy Electricals Ltd.
CAPITAL EQUIPMENT 2,800,429
275,000 Bharat Petroleum
ENERGY 2,769,734
1,075,000 Great Eastern Shipping Co.
MULTI-INDUSTRY 1,123,317
13,000 Hindustan lever Ltd.
MULTI-INDUSTRY 516,203
</TABLE>
17
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
INDIA (CONCLUDED)
COMMON STOCK
98,700 Hindustan Petroleum Corp. Ltd.
ENERGY $ 1,006,386
113,992 ITC Ltd.
CONSUMER GOODS 2,272,090
37,900 Indian Hotels Co. Ltd.
SERVICES 505,541
478,000 Mahanagar Telephone Nigam Ltd.
TELECOMMUNICATIONS 3,033,012
51,000 Mahindra & Mahindra Ltd.
CAPITAL EQUIPMENT 371,247
94,000 Ranbaxy Laboratories Ltd.
CONSUMER GOODS 1,570,415
500,000 Reliance Industries Ltd.
MATERIALS 2,421,629
420,000 State Bank of India
FINANCE 3,050,988
30,300 Videsh Sanchar Nigam Ltd.
TELECOMMUNICATIONS 591,275
-------------------
24,086,420
-------------------
INDONESIA - 1.1%
COMMON STOCK
35,000 Gulf Indonesia Resources Ltd.(a)
ENERGY 538,126
183,000 PT Gudang Garam
CAPITAL EQUIPMENT 216,427
904,000 PT Indofoods Sukses Makmur
CONSUMER GOODS 380,631
351,500 PT Indostat ADR
TELECOMMUNICATIONS 509,292
933,000 PT Hanjaya Mandala Sampoerna
CONSUMER NON-DURABLES 603,704
152,000 PT Tambang Timah
MATERIALS 125,647
1,792,000 PT Telekomunikasi Indonesia
TELECOMMUNICATIONS 699,045
-------------------
3,072,872
-------------------
</TABLE>
18
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
ISRAEL - 3.3%
COMMON STOCK
1,940,900 Bank Leumi Le-Israel
FINANCE $ 3,542,343
88,900 Blue Square-Israel Ltd.
SERVICES 1,422,400
59,210 ECI Telecommunications Ltd.
CAPITAL EQUIPMENT 1,805,905
88,290 Osem Investment Ltd.
CONSUMER GOODS 371,858
49,470 Teva Pharmaceutical Industries Ltd. ADR
CONSUMER GOODS 2,114,843
WARRANTS
107,500 Bank Leumi 4(a)
FINANCE 24,699
-------------------
9,282,048
-------------------
KOREA, REPUBLIC OF - 3.9%
COMMON STOCK
171,000 Daewoo Heavy Industries
FINANCE 845,724
184,376 Kookmin Bank GDR(a)
FINANCE 1,165,715
63,010 Korea Electric Power Corp.
ENERGY 858,049
173,090 L.G. Electronics
CAPITAL EQUIPMENT 2,059,209
29,173 L.G. Information and Communication Ltd.
CAPITAL EQUIPMENT 886,214
10,000 Pohang Iron & Steel Co. Ltd.
MATERIALS 535,446
1,327 SK Telecom Co. Ltd.(b)
TELECOMMUNICATIONS 792,536
6,296 Samsung Display Devices Co.
CAPITAL EQUIPMENT 313,269
50,944 Samsung Electronics Co.
CAPITAL EQUIPMENT 2,820,694
39,000 Samsung Heavy Industries(a)
CAPITAL EQUIPMENT 275,466
55,250 Ssangyong Oil Refining Co. Ltd.
ENERGY 411,166
</TABLE>
19
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
KOREA, REPUBLIC OF (CONCLUDED)
RIGHTS - 0.0%
4,053 Samsung Electronics America, Inc.
CONSUMER DURABLES $ 78,240
-------------------
11,041,728
-------------------
MALYAYSIA - 0.8%
COMMON STOCK
68,000 Berjaya Sports Toto Berhad
SERVICES 160,909
327,000 Magnum Corp Berhad
SERVICES 218,583
189,000 Resorts World Berhad
SERVICES 363,850
174,000 Tanjong plc
OTHER 395,455
127,000 Telekom Malaysia Berhad
SERVICES 380,321
350,000 Tenaga Nasional Berhad
ENERGY 697,193
-------------------
2,216,311
-------------------
MAURITIUS - 0.5%
COMMON STOCK
2,250,000 State Bank of Mauritius Ltd.(a)
FINANCE 1,531,508
-------------------
MEXICO - 12.8%
COMMON STOCK
17,600 Bufete Industrial SA ADR(a)
CAPITAL EQUIPMENT 96,800
963,720 Cemex SA de CV
MATERIALS 4,807,533
2 Cifra SA - Ser A
SERVICES 3
2,343,000 Cifra SA de CV
SERVICES 4,045,984
438,000 Consorcio ARA SA(a)
CAPITAL EQUIPMENT 2,182,390
1,108,000 Controladora Comercial Mexicana SA de CV
SERVICES 1,359,958
219,000 Desc SA de CV
MULTI-INDUSTRY 1,503,940
</TABLE>
20
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
MEXICO (CONCLUDED)
COMMON STOCK
523,000 Fomento Economico Mexicano SA de CV
SERVICES $ 4,029,000
286,400 Grupo Carso SA de CV
MULTI-INDUSTRY 1,821,732
2,050,000 Grupo Financiero Bancomer
SERVICES 1,415,042
367,000 Grupo Industrial Bimbo SA
RETAIL 964,028
267,000 Grupo Industrial Saltillo SA de CV
MULTI-INDUSTRY 1,132,222
47,600 Grupo Televisa SA(a)
SERVICES 1,951,600
158,800 Hylsamex SA
CAPITAL EQUIPMENT 733,255
332,500 Kimberly-Clark de Mexico SA de CV
SERVICES 1,619,515
760,000 Sistema Argos SA de CV
CONSUMER NON-DURABLES 866,576
109,500 Telefonos de Mexico SA ADR
TELECOMMUNICATIONS 6,200,439
47,600 Tubos de Acero de Mexico SA ADR(a)
MATERIALS 874,651
37,000 TV Azteca SA de CV
SERVICES 689,125
-------------------
36,293,793
-------------------
PAKISTAN - 0.8%
COMMON STOCK
68,000 Hub Power Co. Ltd.(b)
MULTI-INDUSTRY 1,751,000
6,000 Pakistan Telecommunications Corp.
SERVICES 414,000
-------------------
2,165,000
-------------------
PERU - 0.3%
COMMON STOCK
40,500 CPT Telefonica del Peru SA ADR
TELECOMMUNICATIONS 896,063
-------------------
</TABLE>
21
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
PHILIPPINES - 1.8%
COMMON STOCK
3,253,012 Ayala Land Inc.
FINANCE $ 1,276,084
11,134,000 Digital Telecommunications Phils., Inc.(a)
TELECOMMUNICATIONS 482,519
9,000 Far East Bank & Trust Co.
FINANCE 10,199
350,280 Manila Electric Co. "B" Shares
ENERGY 994,566
81,540 Philippine Long Distance Telephone Co.
TELECOMMUNICATIONS 2,183,195
-------------------
4,946,563
-------------------
POLAND - 2.6%
COMMON STOCK
7,850 Bank Przemslowo-Handlowy SA
FINANCE 693,361
67,280 Bank Rozwoju Eksportu SA
FINANCE 1,931,341
208,330 Bydgoska Fabryka Kabli SA(a)
CAPITAL EQUIPMENT 1,901,436
46,260 Gorazdze
MATERIALS 1,280,270
48,850 Krosno SA(a)
MATERIALS 401,271
35,000 WBK Ord
FINANCE 271,015
81,004 Zaklandy Metali Lekkich Kety(a)
MATERIALS 1,133,134
-------------------
7,611,828
-------------------
PORTUGAL - 4.8%
COMMON STOCK
28,750 Banco Espirito Santo e Comercial de Lisboa
FINANCE 1,375,373
32,550 Compania de Seguros Mundial Confianc(a)
FINANCE 1,124,612
71,540 Estabelecimentos Jeronimo Martins & Filho
RETAIL 3,344,392
32,640 Portugal Telecom
ENERGY 1,753,988
</TABLE>
22
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
PORTUGAL (CONCLUDED)
COMMON STOCK
131,780 Semapa - Sociedade de Investimento e Gestao SGPS SA
MATERIALS $ 3,854,179
12,830 Telecel-Comunicacaoes Pessoais SA(a)
ENERGY 2,301,657
-------------------
13,754,201
-------------------
RUSSIA - 2.5%
COMMON STOCK
96,470 Gazprom ADR
ENERGY 1,777,461
23,695 Lukoil Holding
ENERGY 1,561,666
128,000 Surgutneftegaz ADR
ENERGY 943,845
88,650 Unified Energy System(a)
ENERGY 2,789,888
-------------------
7,072,860
-------------------
SLOVAK REPUBLIC - 0.1%
COMMON STOCK
9,076 Nafta Gbely AS
SERVICES 204,904
-------------------
SOUTH AFRICA - 9.2%
COMMON STOCK
263,800 Amalgamated Banks of South Africa
FINANCE 2,282,458
57,800 Anglo American Corp. of South Africa Ltd.
MATERIALS 3,417,818
288,829 Barlow Ltd.
MULTI-INDUSTRY 2,790,328
325,000 Billiton plc
MATERIALS 919,115
89,716 Dimension Data Holdings Ltd.(a)
CAPITAL EQUIPMENT 622,769
85,000 Dorbyl Ltd.
CAPITAL EQUIPMENT 571,542
101,776 Ellerine Holdings Ltd.
SERVICES 1,056,707
140,100 Fedsure Holdings Ltd.
FINANCE 2,341,235
</TABLE>
23
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
SOUTH AFRICA (CONCLUDED)
COMMON STOCK
119,000 First National Bank Holdings
SERVICES $ 1,553,250
594,200 Malbak Ltd.
MULTI-INDUSTRY 564,060
635,000 NMBZ Holdings Ltd.(a)
FINANCE 444,500
369,000 Nampak Ltd.
SERVICES 1,590,865
186 New Clicks Holdings Ltd.
SERVICES 294
189,800 Rembrandt Group Ltd.
FINANCE 1,726,649
238,000 Sasol Ltd.
ENERGY 2,400,475
89,168 South African Breweries Ltd.
SERVICES 2,990,782
115,314 South African Druggists Ltd.
CONSUMER GOODS 638,543
-------------------
25,911,390
-------------------
TAIWAN - 4.4%
COMMON STOCK
100,000 Acer Inc. GDR(a)
CAPITAL EQUIPMENT 865,000
681 Asia Cement Corp. GDR
CAPITAL EQUIPMENT 7,304
58,000 Asustek Computer, Inc.(a)
MULTI-INDUSTRY 1,196,250
66,000 Fubon Insurance Co. Ltd. GDR(a)
FINANCE 1,321,650
158,500 ROC Taiwan Fund
FINANCE 1,347,250
67,200 Siliconware Precision Industries Co.(a)
CAPITAL EQUIPMENT 1,013,040
92,000 Taiwan Fund Inc.
FINANCE 1,518,000
145,000 Taiwan Semiconductor Manufacturing Co.(a)
CAPITAL EQUIPMENT 3,561,565
139,345 Teco Electric & Mach GDR
CAPITAL EQUIPMENT 1,724,394
-------------------
12,554,453
-------------------
</TABLE>
24
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
SHARES VALUE US$
------ ---------
THAILAND - 1.4%
COMMON STOCK
93,000 Advanced Info Service Public Co., Ltd.
SERVICES $ 649,255
271,000 Bangkok Bank Public Co., Ltd.
FINANCE 679,688
256,000 Electricity Generating Public Co. Ltd.
ENERGY 496,443
135,000 PTT Exploration and Production Public Co. Ltd.
MATERIALS 1,424,172
298,000 Thai Farmers Bak Public Co. Ltd.
FINANCE 681,912
-------------------
3,931,470
-------------------
TURKEY - 1.7%
COMMON STOCK
12,774,470 Akbank TAS
FINANCE 1,085,721
1,750,640 Migros Turk
SERVICES 1,715,455
5,223,720 Netas Telekomunik(a)
ENERGY 1,943,030
-------------------
4,744,206
-------------------
VENEZUELA - 0.6%
COMMON STOCK
2,955,293 Electricidad De Caracas
ENERGY 1,878,335
-------------------
ZIMBABWE - 0.1%
COMMON STOCK
153,000 Meikles Africa Ltd.(a)
MATERIALS 195,075
-------------------
</TABLE>
25
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
AS OF APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
PAR VALUE US$
--- ---------
REPURCHASE AGREEMENTS - 1.4%
4,000,000 Chase Securities, Inc., 5.45%, 5/1/98, to be
repurchased at $4,000,606. Collateralized by
$2,565,000 U.S. Treasury Notes, 5.66%, 11/15/11 $ 4,000,000
-------------------
595,658,370 Total Investments - 98.9% (cost $253,061,789) 280,527,284
Other Assets Less Liabilities - 1.1% 2,736,347
-------------------
Total Net Assets - 100% $ 283,263,631
===================
</TABLE>
- -------------------------------
(a) Non-income producing security.
(b) Valued pursuant to methodology approved by the Board of Trustees.
ADR - American Depository Receipts
GDR - Global Depository Receipts
26
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments (Note 2)
Investments at cost $ 253,061,789
Net unrealized appreciation (depreciation) 27,465,495
--------------------
Total Investments at value 280,527,284
Cash 4,822,490
Receivable for investments sold 977,618
Receivable for dividends, tax reclaims and interest 1,418,855
Organization costs, net of amortization (Note 2) 6,183
--------------------
Total Assets 287,752,430
--------------------
LIABILITIES:
Payable for investments purchased 3,908,490
Payable to investment adviser (Note 3) 171,479
Payable to administrator (Note 3) 11,657
Payable to subadministrator (Note 3) 23,314
Accrued foreign taxes payable (Note 5) -
Accrued expenses and other liabilities 373,859
--------------------
Total Liabilities 4,488,799
--------------------
Net Assets $ 283,263,631
====================
COMPONENTS OF NET ASSETS:
Investors' capital $ 255,875,581
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 27,388,050
--------------------
Net Assets $ 283,263,631
====================
</TABLE>
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend income (net of foreign withholding taxes of $278,573) $ 2,678,231
Interest income 583,785
--------------------
Total Investment Income 3,262,016
--------------------
EXPENSES:
Investment advisory ( Note 3) 1,318,762
Administration (Note 3) 65,938
Subadministration (Note 3) 131,876
Transfer agency (Note 3) 6,193
Custody 249,235
Accounting (Note 3) 36,000
Audit 21,413
Legal 10,097
Trustees 6,069
Pricing 11,938
Amortization of organization costs (Note 2) 1,237
Miscellaneous 20,654
--------------------
Total Expenses 1,879,412
Fees waived (Note 6) (324,328)
--------------------
Net Expenses 1,555,084
--------------------
NET INVESTMENT INCOME (LOSS) 1,706,932
--------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) on investments sold (A) (19,937,873)
Net realized gain (loss) on foreign currency transactions (433,041)
--------------------
Net realized gain (loss) on investments and foreign currency
transactions (20,370,914)
--------------------
Net change in unrealized appreciation (depreciation) on investments (B) 28,532,545
Net change in unrealized appreciation (depreciation) on foreign currency
transactions (8,335)
--------------------
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions 28,524,210
--------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS 8,153,296
--------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 9,860,228
====================
</TABLE>
- ------------------------------
(A) Net of Indian capital loss tax of $85,301.
(B) Net of deferred Indian capital gain tax of $58,476.
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD
ENDED FOR THE YEAR
APRIL 30, 1998 ENDED
(UNAUDITED) OCTOBER 31, 1997
-------------------- --------------------
NET ASSETS, BEGINNING OF PERIOD $ 259,075,892 $ 167,549,528
-------------------- --------------------
OPERATIONS:
Net investment income (loss) 1,706,932 1,770,513
Net realized gain (loss) on investments (20,370,914) (10,263,960)
Net change in unrealized appreciation (depreciation) on investments 28,524,210 (2,810,514)
-------------------- --------------------
Net increase (decrease) in net assets resulting from operations 9,860,228 (11,303,961)
-------------------- --------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST (A):
Contributions 45,340,326 129,110,600
Withdrawals (31,012,815) (26,280,275)
-------------------- --------------------
Net increase (decrease) in net assets from
transactions from investors' beneficial interest 14,327,511 102,830,325
-------------------- --------------------
Net increase (decrease) in net assets 24,187,739 91,526,364
-------------------- --------------------
NET ASSETS, END OF PERIOD $ 283,263,631 $ 259,075,892
==================== ====================
</TABLE>
(A) Includes purchase and redemption fees (Note 7).
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C>
Portfolio performance for the following periods:
For the For the
Period Ended Years Ended
April 30, October 31,
-------------- -------------------------------
1998 (b) 1997 1996
- --------------------------------------------------------------------------------------- ------------- --------------
Ratio to Average Net Assets:
Expenses including reimbursement/waiver of fees 1.18% 1.22% 1.45%
Expenses excluding reimbursement/waiver of fees 1.43% 1.43% 1.51%
Net investment income including reimbursement/waiver of fees 1.05% 0.69% 0.52%
Average Commission Rate Per Share (a) $0.0017 $0.0020 $0.0008
Portfolio Turnover Rate 26.19% 43.13% 102.70%
</TABLE>
- ----------------------------------------------------
(a) Amount represents the average commission per share paid by the Portfolio
to brokers on the purchase and sale of equity securities on which
commissions are charged.
(b) Unaudited.
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
Schroder Emerging Markets Fund Institutional Portfolio (Portfolio)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. ORGANIZATION
Schroder Capital Funds ("Schroder Core") was organized as a Delaware business
trust by on September 7, 1995. Schroder Core, 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 Schroder Emerging Markets Fund Institutional Portfolio (the "Portfolio"), a
non-diversified portfolio that commenced operations on November 1, 1995. Under
its Trust Instrument, Schroder Core is authorized to issue an unlimited number
of interests without par value. Interests in the Portfolio are sold in private
placement transactions without any sales charges to qualified investors,
including open-end, management investment companies. Purchases and redemptions
are subject to a subscription transactions charge of 0.50% payable to the
Portfolio to reimburse transaction costs incurred with respect to the
Portfolio's purchase or sale of portfolio investments.
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 Portfolio:
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 preceding 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. Domestic short-term investments having a maturity of 60 days
or less are valued at amortized cost, which approximates market value. Foreign
short-term investments are valued at the current market price then marked to
market to recognize any gain or loss on the transaction. 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 Schroder Core's
Board of Trustees. As of April 30, 1998, the Portfolio had did not hold a
position in Fair valued securities.
SECURITY TRANSACTIONS AND INVESTMENT INCOME - Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date except that certain dividends from foreign securities where the ex-dividend
date may have passed are recorded as soon as the Portfolio is informed of the
ex-dividend date. Dividend income is recorded net of withholding tax. Interest
income, including amortization of discount or premium, is recorded as earned.
Identified cost of investments sold is used to determine realized gain and loss
for both financial statement and federal income tax purposes. Foreign dividend
and interest income amounts and realized capital gain and loss are converted to
U.S. dollar equivalents using foreign exchange rates in effect on the date of
the transactions.
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.
31
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Portfolio may enter into forward contracts to purchase or sell foreign
currencies to protect on the U.S. dollar value of the underlying portfolio
against the effect of possible adverse movements in foreign exchange rates.
Risks associated with such contracts 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 contracts are recorded daily as
unrealized gain or loss; realized gain or loss includes net gain or loss on
contracts that have terminated by settlement or by the Portfolio entering into
offsetting commitments.
REPURCHASE AGREEMENTS - The Portfolio may invest in repurchase agreements. The
Portfolio, through its custodian, receives delivery of the underlying
collateral, whose market value must always equal or exceed the repurchase price.
The investment adviser is responsible for determining the value of the
underlying collateral at all times. In the event of default, the Portfolio may
have difficulties with the disposition of any securities held as collateral.
EXPENSE ALLOCATION - Schroder Core accounts separately for the assets and
liabilities and operation of each of its portfolios. Expenses that are directly
attributable to more than one portfolio are allocated among the respective
portfolios in proportion to each portfolio's net assets.
ORGANIZATIONAL COSTS - Costs incurred by the Portfolio in connection with its
organization are amortized on a straight line basis over a five-year period.
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER - Schroder Capital Management International Inc. ("SCMI"), is
the investment adviser. Pursuant to an Investment Advisory Agreement, SCMI is
entitled to receive an annual fee, payable monthly, of 1.00% of the average
daily net assets of the Portfolio. SCMI voluntarily has undertaken to waive a
portion of its fees in order to limit fees paid for the Portfolio's investment
advisory services to 0.85% 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.
ADMINISTRATOR AND SUBADMINISTRATOR - The administrator of the Portfolio is
Schroder Fund Advisors Inc. ("Schroder Advisors"). In addition, the Portfolio
has entered into a Subadministration Agreement with Forum Administrative
Services, LLC ("FAdS"). For its services, Schroder Advisors and FAdS are
entitled to receive compensation at annual rates, payable monthly, of 0.05% and
0.10%, respectively of the average daily net assets of the Portfolio, subject to
an annual minimum fee of $25,000, payable to FAdS for subadministration
servieces.
OTHER SERVICE PROVIDERS - Forum Accounting Services, LLC ("FAcS") performs
portfolio accounting for the Portfolio and is entitled to receive compensation
for those services in the amount of $60,000 per year, plus certain amounts based
upon the number and types of portfolio transactions. FAcS also serves as the
Portfolio's transfer agent and is entitled to receive compensation for those
services from Schroder Core with respect to the Portfolio in the amount of
$12,000 per year plus certain other fees and expenses.
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 period ended April 30, 1998
aggregated $95,528,708 and $65,080,261, respectively.
32
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKETS FUND INSTITUTIONAL PORTFOLIO (PORTFOLIO)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
For federal income tax purposes, the tax basis of investment securities owned as
of April 30, 1998 was $280,139,637 and the net unrealized appreciation of
investment securities was $27,212,915. The aggregate gross unrealized
appreciation for all securities in which there was an excess of market value
over tax cost was $54,016,428, and aggregate gross unrealized depreciation for
all securities in which there was an excess of tax cost over market value was
$26,803,513.
NOTE 5. FEDERAL TAXES
The Portfolio is not required to pay federal income taxes on its net investment
income and net capital gain as it is treated as a partnership for federal income
tax purposes. All interest, dividends, gain and loss of the Portfolio are deemed
to have been "passed through" to the partners in proportion to their holdings in
the Portfolio regardless of whether such interest, dividends or gain have been
distributed by the Portfolio.
Under the applicable foreign tax law, a withholding tax may be imposed on
interest, dividends, and capital gains at various rates. Indian tax regulations
require that taxes be paid on capital gains realized by the Portfolio. At April
30, 1998, the Portfolio decreased net unrealized appreciation on investments by
the estimated tax liability attributable to Indian investments of $58,476 and
decreased net realized losses on investments by $85,301 for taxes incurred on
losses realized from Indian investments.
NOTE 6. WAIVER OF FEES
Effective May 5, 1997, SCMI voluntarily waived a portion of its advisory fee so
that the Portfolio's total expenses would not exceed 1.18% of the Portfolio's
average daily net assets. SCMI, Schroder Advisors, FAdS and FAcS may waive
voluntarily all or a portion of their fees from time to time. SCMI waived fees
of $324,328 and $534,861 for the period ended April 30, 1998 and the year ended
October 31, 1997, respectively.
NOTE 7. PURCHASE AND REDEMPTION FEE
Purchases and redemptions of interest in the Portfolio are subject to a
transaction charge of 0.50% of the net asset value of the interests purchased or
redeemed. This charge is designed to cover the transaction costs incurred by the
Portfolio (either directly or indirectly) as a result of a purchases or
redemptions of interests in the Portfolio, including brokerage commissions in
acquiring or selling portfolio securities; currency transactions costs; interest
recordkeeper costs; and to protect the interests of other interestholders. These
charges, which are not sales charges, are paid to the Portfolio, not SCMI, FAdS
or any other entity. The purchase and redemption fees for the period ended April
30, 1998 were $225,926 and $155,064, respectively. The purchase and redemption
fees are included in the Statement of Changes in Net Assets contributions and
withdrawal amounts, respectively, and are included in the Investors' Capital in
the Statement of Assets and Liabilities.
NOTE 8. CONCENTRATION OF RISK
The Portfolio's investments in countries with limited or developing capital
markets may involve greater risks than investments in more developed markets and
the prices of such investments may be volatile. The consequences of political,
social or economic events in these markets may have disruptive effects on the
market prices of the Portfolio's investments.
33
<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 Foulkes
Vice President
John Y. Keffer
Vice President
Jane Lucas
Vice Presidnet
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
Fergal Cassidy
Treasurer
<PAGE>
INVESTMENT ADVISER
Schroder Capital Management International Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
ADMINISTRATOR & DISTRIBUTOR
Schroder Fund Advisors Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
CUSTODIAN
The Chase Manhattan Bank
Global Custody Division
125 London Wall
London EC2Y 5AJ, United Kingdom
TRANSFER AND DIVIDEND DISBURSING
AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, ME 04101
COUNSEL
Ropes & Gray
One International Place
Boston, MA 02110-2624
INDEPENDENT AUDITORS
Coopers & Lybrand L.L. P.
One Post Office Square
Boston, MA 02109
This report is for the information of the shareholders
of the Schroder Emerging Markets Fund Institutional
Portfolio. 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.
EMGsemi (4/98)
