<PAGE>
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Schroder International Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
The investment objective of the Fund is long-term capital appreciation
through investment in securities markets outside the United States.
INVESTMENT ADVISER
Schroder Capital Management International Inc. (the "Investment Adviser")
is a wholly owned indirect subsidiary of Schroder 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 22
countries worldwide. As of December 31, 1998, the Schroder Group had over
$195 billion in assets under management. As of March 31, 1999, the Investment
Adviser, together with its U.K. affiliate, Schroder Capital Management
International Ltd., had approximately $28 billion under management.
June 3, 1999
Dear Shareholder:
We are pleased to present the semiannual report for the Schroder
International Fund for the six months ended April 30, 1999. During this period
the anxieties about the world's economies that were prevalent towards the end of
1998 have lessened. The U.S. remained a surprisingly solid engine of growth;
moreover, it achieved this growth with consistent improvements in productivity
and with little pressure on core inflation. Continental European economies
clearly slowed, but we anticipate that rapid action by the monetary authorities
in the future to reduce interest rates should ensure that the economies do not
stall. In addition, the U.K. seems set for a softer landing than seemed likely
late last year. Elsewhere, in Asian economies outside Japan, economic recovery
is broadening out from the export sectors to areas of domestic demand. A number
of economies in the region have experienced upgrades in their GDP forecasts for
1999 and many remain on course with restructuring programs. The devaluation of
the Brazilian currency in January this year turned out not to be the precursor
of further global instability as feared. Better than expected inflation patterns
in Brazil and adherence to credible fiscal policies during the period helped to
boost confidence and, although the Brazilian economy remains under pressure,
there is the potential for a smooth recovery. Even in Japan, where the risks of
deflation remain high and there are few signs of economic recovery, pockets of
apparent stability have formed and there is a more widespread commitment to
structural reform. The interest rate gap between many emerging economies' debt
and that of U.S. Treasury bonds has narrowed as the risks of last year are
believed to be diminished. Increased confidence in an emerging markets recovery
is evident in the narrowing interest rate gap between emerging markets and U.S.
Treasury debt.
Looking ahead, we believe that it is unlikely that stock valuations in
developed markets will expand as fast as they have in the last few years.
Although valuations in many developed markets are relatively high, there remain
areas of compelling value, as large parts of these markets (often including
smaller and mid cap companies) have not participated in this trend. While the
global interest rate environment might provide less support for stock prices
than it has done, corporate earnings should continue to benefit from the effect
of previous interest rate cuts. Opportunities exist with companies that
distinguish themselves through improving internal operations and learning to use
capital more efficiently. We are encouraged by this trend, which is becoming
more common in many markets outside the U.S., and the benefits of such
restructuring activity is likely to be a positive influence on companies'
profitability for an extended period of time. Schroders' investment process,
based on detailed fundamental research and carried out globally, is designed to
highlight such opportunities for the long-term benefit of our investors.
Since your last report, Mark Smith has resigned as President and Chairman
of the Fund. As you may already know, Schroder Capital Management International
Inc., and its sister company responsible for investing in domestic markets, will
be merging into a newly created corporation called Schroder Investment
Management North
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1
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Schroder International Fund
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America Inc. This change will allow us to simplify our corporate structure and
to integrate our global equity and fixed income management services for U.S.
clients into one corporate entity. We can assure you that no changes in Fund
management are planned or anticipated in connection with the merger. We expect
the merger to be effective on or about July 1, 1999.
Thank you for your interest in the Schroder International Fund.
Sincerely,
/s/ Nancy A. Curtin /s/ Alexandra Poe
------------------- ------------------
Nancy A. Curtin Alexandra Poe
Chairman President
- --------------------------------------------------------------------------------
2
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Schroder International Fund
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1999) (unaudited)
HOW DID THE FUND PERFORM FOR THE SIX MONTHS ENDED APRIL 30, 1999?
For the six months ended April 30, 1999 the Schroder International Fund's
Investor Shares gained 15.16%. Its benchmark, the MSCI EAFE Index, returned
15.32% over the same period.
WHAT FACTORS CONTRIBUTED MOST TO PERFORMANCE DURING THE PERIOD?
We combine a bottom-up stock selection process with a detailed country and
sector analysis to identify those regions or industries with the best growth
prospects. Over the period, stock selection contributed more strongly than
country allocation. Our overweight position in stocks in the oil industry was
particularly successful due to the surge in the price of oil. Our best
performing stocks in this sector were French producers Elf Aquitaine and Total,
and UK oil companies BP Amoco and Lasmo which we purchased just prior to the
price surge. Our overweight position in telecommunication stocks also
contributed to our successful stock selection, as many telecom stocks benefited
from restructuring and merger and acquisition activity during the period. For
example, we owned Telecom Italia which benefited from a takeover bid, and
Mannesmann, a leading German telecom company and key beneficiary of the opening
up of the European telecommunications market. In addition, our hedging of the
Japanese yen added value as the yen weakened after the Bank of Japan eased
monetary policy in February and our hedging of the British pound helped as
sterling slid against the dollar following significant interest rate cuts by the
Bank of England.
WHAT CHANGES IN INVESTMENT ALLOCATION DID YOU MAKE TO THE FUND'S PORTFOLIO OVER
THE PERIOD AND WHAT EFFECT DID THESE CHANGES HAVE?
During the six months ended April 30, 1999, we gradually increased our
allocation to smaller Asian markets, such as Singapore and Korea, so that the
Fund was able to benefit from the economic recovery in Asia. Towards the end of
the period, we initiated positions in the Philippines, Thailand and New Zealand,
due to signs of corporate recovery and improving investor sentiment in these
countries. In the latter half of the period, we started reducing the Fund's
position in Continental Europe, as we recognized that markets in the region had
peaked and valuations were generally high. This proved to be the right decision
as Continental Europe underperformed over the six months.
WHAT IS YOUR OUTLOOK FOR JAPAN AND WHICH AREAS OF THE MARKET DO YOU FAVOR GOING
FORWARD?
The Fund remains underweight in Japan. Despite signs of apparent
improvement in the Japanese market towards the end of the semi-annual period, we
believe that Japan's economic prospects remain uncertain. Moreover, we believe
that further monetary stimulus is needed for the country to support a
sustainable long-term recovery. However, within Japan there are areas of
stability where there appears to be a genuine commitment to reform. In
particular, we favor the electrical and wholesale sectors as these are
benefiting from corporate restructuring. For example, one of our strongest
performers was Sony, which announced major restructuring plans during the
period. We continue to emphasize internationally focused companies with strong
business franchises and excellent management.
WHAT IMPACT CAN INTERNATIONAL INVESTING HAVE ON PERFORMANCE AND THE MANAGEMENT
OF RISK WITHIN AN INDIVIDUAL'S PORTFOLIO?
Investing in a broad range of international markets provides
diversification within an individual's portfolio, enabling the investor to
reduce their risk profile and enhance returns over time. Diversification comes
not only from access to global equity markets which are subject to regional and
national characteristics but also from investing in a range of currencies. With
more investment opportunities available, an investor can take advantage of
differences in valuations, economic and business cycles, or gain exposure to
industries and trends which may be
- --------------------------------------------------------------------------------
3
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Schroder International Fund
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lacking in a domestic market. Many international economies and stock markets are
expanding rapidly, and ongoing developments, such as reduced trade barriers,
enhanced competitiveness, the stabilization of exchange rates and corporate
restructuring have increased the chance for strong performance in international
equity markets. However, investors should bear in mind the risks associated with
investing in international equity markets, such as political or financial
instability and currency risk, market entry or exit restrictions and, in some
cases, reduced liquidity. In light of these risks, investing in international
equity markets should only be viewed as part of a complete investment program.
The views expressed in this report were those of the Fund's portfolio
manager as of April 30, 1999, and may not reflect the views of the portfolio
manager on the date this report is first published or any time thereafter. These
views are intended to assist shareholders of the Fund in understanding their
investment in the Fund and do not constitute investment advice; investors should
consult their own investment professionals as to their individual investment
programs.
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4
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Schroder International Fund
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PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 1999 (UNAUDITED)
COUNTRY WEIGHTINGS
% OF
COUNTRY NET ASSETS
- ----------------------------------------------------------
United Kingdom 22.91%
Japan 16.43
France 15.84
Netherlands 7.77
Italy 5.99
Germany 5.69
Switzerland 4.63
Sweden 2.30
Spain 2.06
Denmark 1.51
Singapore 1.00
Belgium 0.92
Portugal 0.89
Korea, Republic of 0.63
New Zealand 0.59
Philippines 0.37
Thailand 0.21
Cash and Other Net Assets 10.26
------
Total 100.00%
------
------
TOP TEN HOLDINGS
% OF
SECURITY NET ASSETS
- ----------------------------------------------------------
Commerzbank, London, Certificates
of Participation, 2.5%, 5/24/99 2.93%
Elf Aquitaine SA 2.24
Mannesmann AG 2.07
BP Amoco plc 1.95
Vivendi (including warrant) 1.95
Suez Lyonnaise des Eaux 1.79
UBS AG 1.77
Daimler-Chrysler AG 1.60
Telecom Italia SpA 1.57
Philips Electronics NV 1.54
------
Total 19.41%
------
------
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5
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Schroder International Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments (Notes 1 and 2):
Investment in International Equity Fund (the"Portfolio") $ 141,080,633
Receivable from administrator (Note 3) 9,394
Receivable for Fund shares sold 339,959
Receivable from investment adviser (Note 4) 7,951
-------------
Total Assets 141,437,937
-------------
LIABILITIES:
Dividends payable 4,938
Payable for Fund shares redeemed 351,761
Payable to administrator (Note 3) 5,745
Accrued expenses and other liabilities 33,380
-------------
Total Liabilities 395,824
-------------
Net Assets $ 141,042,113
-------------
-------------
COMPONENTS OF NET ASSETS:
Paid-in capital $ 111,849,918
Undistributed net investment income 1,594,553
Accumulated net realized gain on investments
and foreign currency transactions 4,444,997
Net unrealized appreciation on investments
and foreign currency transactions 23,152,645
-------------
Net Assets $ 141,042,113
-------------
-------------
SHARES OF BENEFICIAL INTEREST 8,765,770
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $16.09
</TABLE>
The accompanying notes are an integral part of the financial statements.
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6
<PAGE>
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Schroder International Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME ALLOCATED FROM THE PORTFOLIO:
Dividend income (net of foreign withholding taxes of $110,131) $ 651,717
Interest income 190,112
Net expenses (491,537)
------------
Net Investment Income Allocated from the Portfolio 350,292
------------
EXPENSES:
Administration (Note 3) 98,408
Subadministration (Note 3) 32,803
Transfer agency (Note 3)
Investor Shares 33,353
Advisor Shares 3,006
Accounting (Note 3) 6,000
Legal 9,573
Audit 7,272
Registration 18,656
Reporting 13,862
Trustees 6,887
Miscellaneous 11,295
------------
Total Expenses 241,115
Fees waived and expenses reimbursed (Note 4) (83,705)
------------
Net Expenses 157,410
------------
NET INVESTMENT INCOME 192,882
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ALLOCATED FROM THE PORTFOLIO:
Net realized gain on investments sold 7,706,092
Net realized loss on foreign currency transactions (938,775)
------------
Net realized gain on investments
and foreign currency transactions 6,767,317
------------
Net change in unrealized appreciation on investments 11,700,189
Net change in unrealized depreciation on
foreign currency transactions (34,367)
------------
Net change in unrealized appreciation on
investments and foreign currency transactions 11,665,822
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ALLOCATED FROM THE PORTFOLIO 18,433,139
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 18,626,021
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
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7
<PAGE>
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Schroder International Fund
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STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months Ended For the
April 30, 1999 Year Ended
(unaudited) October 31, 1998
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS, BEGINNING OF PERIOD $129,954,774 $ 191,219,133
------------ -------------
OPERATIONS:
Net investment income 192,882 1,915,529
Net realized gain on investments sold 6,767,317 23,730,622
Net change in unrealized appreciation
(depreciation) on investments 11,665,822 (15,922,356)
------------ -------------
Net increase in net assets
resulting from operations 18,626,021 9,723,795
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income--Investor Class (1,311,873) (3,140,556)
Net realized gain on investments--Investor Class (22,931,620) (15,603,343)
Net realized gain on investments--Advisor Class (17) --
------------ -------------
Total distributions to shareholders (24,243,510) (18,743,899)
------------ -------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares--Investor Class 31,777,375 61,200,571
Sale of shares--Advisor Class -- 3,600
Reinvestment of distributions--Investor Class 18,465,475 12,794,795
Reinvestment of distributions--Advisor Class 17 --
Redemption of shares--Investor Class (33,537,939) (126,239,223)
Redemption of shares--Advisor Class (100) (3,998)
------------ -------------
Net increase (decrease) from
capital share transactions 16,704,828 (52,244,255)
------------ -------------
Net increase (decrease) in net assets 11,087,339 (61,264,359)
------------ -------------
NET ASSETS, END OF PERIOD (A) $141,042,113 $ 129,954,774
------------ -------------
------------ -------------
SHARE TRANSACTIONS:
Sale of shares--Investor Class 2,020,931 3,452,665
Sale of shares--Advisor Class -- 210
Reinvestment of distributions--Investor Class 1,232,674 788,008
Reinvestment of distributions--Advisor Class 1 --
Redemption of shares--Investor Class (2,085,885) (7,053,415)
Redemption of shares--Advisor Class (6) (205)
------------ -------------
Net increase (decrease) in shares 1,167,715 (2,812,737)
------------ -------------
------------ -------------
</TABLE>
- ---------------------------------------------------------------
(a) Includes accumulated undistributed net investment income of $1,594,553 and
$2,713,544, respectively, for the six months ended April 30, 1999 and the
year ended October 31, 1998.
The accompanying notes are an integral part of the financial statements.
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Schroder International Fund
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FINANCIAL HIGHLIGHTS--INVESTOR SHARES
Selected per share data and ratios for an Investor share outstanding
throughout each period:
<TABLE>
<CAPTION>
For the
Six Months Ended
April 30, For the Year Ended October 31,
1999 ------------------------------------------------------------
(unaudited) 1998 1997 1996 (a) 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 17.10 $ 18.37 $ 20.01 $ 20.91 $ 23.17 $ 20.38
--------- -------- -------- --------- -------- --------
Investment Operations
Net Investment Income (b) 0.02 0.23 0.14 0.15 0.46 0.18
Net Realized and Unrealized
Gain (Loss) on Investments
and Foreign Currency
Transactions 1.93 0.34 1.31 1.74 (0.18) 2.69
--------- -------- -------- --------- -------- --------
Total from Investment Operations 1.95 0.57 1.45 1.89 0.28 2.87
--------- -------- -------- --------- -------- --------
Distributions From
Net Investment Income (0.16) (0.29) (0.46) (0.47) -- (0.08)
Net Realized Gain on
Investments (2.80) (1.55) (2.63) (2.32) (2.54) --
--------- -------- -------- --------- -------- --------
Total Distributions (2.96) (1.84) (3.09) (2.79) (2.54) (0.08)
--------- -------- -------- --------- -------- --------
Net Asset Value, End of Period $ 16.09 $ 17.10 $ 18.37 $ 20.01 $ 20.91 $ 23.17
--------- -------- -------- --------- -------- --------
--------- -------- -------- --------- -------- --------
Total Return (c) 15.16% 3.82% 8.33% 10.05% 2.08% 14.10%
Ratio/Supplementary Data:
Net Assets End of Period (in
thousands) $ 141,042 $129,955 $191,219 $ 202,735 $212,330 $500,504
Ratios to Average Net Assets
(b):
Expenses, including
reimbursement/waiver of fees 0.99%(e) 0.99% 0.99% 0.99% 0.91% 0.90%
Expenses, excluding
reimbursement/waiver of fees 1.17%(e) 1.08% 1.06% 1.04% N/A N/A
Net investment income,
including
reimbursement/waiver of fees 0.29%(e) 1.14% 0.67% 0.86% 0.99% 0.94%
Portfolio Turnover Rate (d) 46% 53% 36% 56% 61% 25%
</TABLE>
- ---------------------------------------
(a) On November 1, 1995, the Fund converted to a Core and
Gateway(Registered) structure (See Note 1).
(b) Includes the Fund's proportionate share of income and expenses of the
Portfolio, since the conversion to a Core and
Gateway(Registered) structure.
(c) Total returns would have been lower had certain expenses not been reduced
during the periods shown (See Note 4).
(d) The rate after October 31, 1995 represents the turnover of the underlying
Portfolio.
(e) Annualized.
The accompanying notes are an integral part of the financial statements.
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9
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Schroder International 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 Schroder Capital Funds,
a series company, on February 29, 1988; 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, as
amended (the "Act"), currently has nine investment portfolios. Included in
this report is the Schroder International Fund (the "Fund"), which is a
diversified portfolio that commenced operations on December 19, 1985. 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, 1999, only Investor Shares had been issued.
Until May 28, 1999, the Fund sought to achieve its investment objective
by investing all its investable assets in International Equity Fund (the
"Portfolio"), a separate diversified portfolio of Schroder Capital Funds
("Schroder Core") that had the same investment objective and substantially
similar investment policies as the Fund. The Fund accounted for its
investment in the Portfolio as a partnership investment and recorded daily
its share of the Portfolio's income, expenses and realized and unrealized
gain or loss. The Portfolio's financial statements are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements. As of April 30, 1999, the Fund owned approximately 83.1% of the
interests in the Portfolio. Since May 28, 1999, the Fund has sought its
objective by investing directly in a portfolio of securities considered by
Schroder Capital Management International Inc., the Fund's investment
adviser, to be consistent with the Fund's investment objective and policies,
and has ceased to invest in the Portfolio.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally
accepted accounting principles, which require management to make certain
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 amounts could
differ from those estimates.
The following represent the 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 is discussed in the Notes
to the Financial Statements of the Portfolio. Investments held directly by
the Fund will be valued in the same manner as the Portfolio would value such
investments.
INVESTMENT INCOME AND EXPENSES
For the periods covered by these Financial Statements, the Fund
recorded daily its pro rata share of the Portfolio's income, expenses and
realized and unrealized gain and loss. In addition, the Fund incurred its own
expenses.
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income and net capital gain, if any, are distributed to
shareholders at least annually and are recorded on the ex-dividend date.
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
Portfolio or the Fund, timing differences and differing characterizations of
distributions made by the Fund.
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10
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Schroder International Fund
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEDERAL TAXES
The Fund intends to qualify each year as a regulated investment company
and distribute all its taxable income. In addition, by distributing in each
calendar year substantially all its net investment income, capital gain and
certain other amounts, if any, the Fund will not be subject to 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.
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER
Schroder Capital Management International Inc. ("SCMI") is the
investment adviser to the Fund. Prior to May 28, 1999, the Fund invested all
its assets in the Portfolio, which had retained SCMI to act as investment
adviser pursuant to an Investment Advisory Agreement. Beginning June 1, 1999,
the Fund incurs investment advisory fees at an annual rate, payable monthly,
of 0.50% of the Fund's average daily net assets up to $100 million, 0.40% of
the next $100 million, and 0.35% of the Fund's average daily net assets in
excess of $200 million, payable to SCMI. SCMI has agreed to limit the
investment advisory fees payable to it by the Fund to the annual rate of
0.45% of the Fund's average daily net assets. See Notes to the Financial
Statements of the Portfolio.
SCMI has informed the Trust that it expects on or about July 1, 1999 to
be merged into Schroder Investment Management North America Inc., a newly
organized Delaware corporation. SCMI and Schroder Investment Management North
America Inc. are both wholly owned subsidiaries of Schroder U.S. Holdings,
Inc.
ADMINISTRATOR AND SUBADMINISTRATOR
The administrator of the Fund is Schroder Fund Advisors Inc. ("Schroder
Advisors"). For its services, Schroder Advisors is entitled to receive
compensation at an annual rate, payable monthly, of 0.225% of the average
daily net assets of the Fund. (Until May 28, 1999, Schroder Advisors was
entitled to receive compensation at an annual rate, payable monthly, of 0.15%
of the Fund's average daily net assets; Schroder also received fees from the
Portfolio for providing administrative services at an annual rate of 0.075%
of the Portfolio's average daily net assets.) In addition, the Trust has
entered into a Sub-Administration Agreement with State Street Bank and Trust
Company and Schroder Advisors. Under the Agreement, the Fund, together with
other mutual funds managed by SCMI and certain related entities, pays fees to
State Street based on the combined average daily net assets of all of the
funds in the Schroder complex, according to the following annual rates: 0.06%
of the first $1.7 billion of such assets, 0.04% of the next $1.7 billion, and
0.02% of assets in excess of $3.4 billion, subject to certain minimum
requirements. Pursuant to a separate agreement, the Fund pays State Street
fees for accounting services at the following annual rates: 0.02% of the
first $100 million of net assets, 0.015% of the next $100 million, 0.005% of
the next $300 million, and 0.0025% of assets in excess of $500 million,
subject to certain minimum requirements. Prior to June 1, 1999, the Fund paid
subadministration fees to Forum Administrative Services, LLC at an annual
rate of 0.05% of the average daily net assets of the Fund and paid accounting
fees to Forum Accounting Services, LLC at an annual rate of $12,000.
- --------------------------------------------------------------------------------
11
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Schroder International Fund
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
NOTE 4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
In order to limit the Fund's expenses, SCMI is contractually obligated
to reduce its compensation (and, if necessary, to pay certain other Fund
expenses) until December 31, 1999, to the extent that the Fund's net expenses
attributable to its Investor shares exceed 0.99% (based on the Fund's average
daily net assets). For the period ended April 30, 1999, Schroder Advisors and
Forum Shareholder Services, LLC waived fees of $66,748 and $9,006,
respectively. Schroder Advisors reimbursed expenses of $7,951.
NOTE 5. BENEFICIAL INTEREST
For the period ended April 30, 1999, there were 2 shareholders,
otherwise unaffiliated with the Fund, each owning more than 5% of the Fund's
net assets, totaling 24.2%.
- --------------------------------------------------------------------------------
12
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International Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
STOCKS AND WARRANTS - 89.8%
SHARES VALUE US$
- --------- ------------
BELGIUM - 0.9%
COMMON STOCK
4,850 Grupo Bruxelles Lambert SA (a) $ 890,242
10,940 KBC Bancassurance Holding 679,395
------------
1,569,637
------------
DENMARK - 1.5%
COMMON STOCK
12,320 Den Danske Bank 1,421,815
19,270 International Service System
A/S (a) 1,133,912
------------
2,555,727
------------
FRANCE - 15.9%
COMMON STOCK
5,810 Accor SA 1,533,605
7,010 Alcatel 861,769
15,370 Assurance Generales de France 812,225
11,700 AXA 1,512,599
9,980 Bouygues SA 2,540,346
6,130 Canal Plus 1,706,920
9,528 Casino Guichard Perrachon 939,473
24,486 Elf Aquitaine SA (a) 3,808,044
7,340 Groupe Danone 1,964,641
10,400 Lafarge SA 1,012,250
4,610 L'Air Liquide 712,066
4,670 Sanofi SA 732,698
7,430 STMicroelectronics NV (a) 775,055
17,850 Suez Lyonnaise des Eaux 3,040,401
11,900 Total SA, "B" 1,631,619
14,009 Vivendi (a) 3,276,896
WARRANT
14,156 Vivendi 31,301
------------
26,891,908
------------
GERMANY - 5.7%
COMMON STOCK
7,550 BASF AG 331,084
27,491 Daimler-Chrysler AG 2,717,919
24,010 Hoechst AG 1,139,256
26,680 Mannesmann AG 3,516,986
31,720 RWE AG 1,453,074
22,500 Thyssen Krupp AG (a) 492,742
------------
9,651,061
------------
ITALY - 6.0%
COMMON STOCK
33,780 Assicurazioni Generali 1,316,934
474,490 Banca di Roma 783,102
296,930 ENI SpA 1,957,081
51,070 Istituto Bancario San Paolo di
Torino 767,222
175,090 Italgas SpA 779,848
126,290 Olivetti SpA (a) 440,910
SHARES VALUE US$
- --------- ------------
ITALY (CONCLUDED)
243,670 Telecom Italia Mobile SpA (a) $ 1,453,945
250,255 Telecom Italia SpA 2,666,116
------------
10,165,158
------------
JAPAN - 16.4%
COMMON STOCK
106,000 Amada Metrecs Co. Ltd. 624,306
42,000 Arcland Sakamoto 408,172
48,000 Bridgestone Corp. 1,286,849
31,600 Credit Saison Co. Ltd. 645,971
60,000 Dai-Dan Co. Ltd. 419,734
257,000 Dai-Tokyo Fire & Marine
Insurance Co. Ltd. 940,916
92,000 Daiwa House Industry Co. Ltd. 1,098,346
168 East Japan Railway Co. 992,281
51,000 Fuji Photo Film Co. 1,927,006
149,000 Hanshin Electric Railway Co.
Ltd. 461,875
161,000 Hitachi Ltd. 1,176,193
115,000 Kuraray Co. Ltd. 1,310,307
62,000 Matsushita Electric Industrial
Co. Ltd. 1,179,109
232,000 Mitsui & Co. Ltd. 1,700,718
53,000 Mitsui Fudosan Co. Ltd. 488,433
21,000 Murata Manufacturing Co. Ltd. 1,201,645
17,400 Nagaileben Co. Ltd. 466,483
13,000 Nitto Denko Corp. 247,232
43,000 Nomura Securities Co. Ltd. 464,003
49 NTT Corp. 533,674
26 NTT Mobile Communications
Network, Inc. 1,524,782
56,000 Omron Corp. 771,774
7,000 Promise Co. Ltd. 398,789
9,000 Rohm Co. Ltd. 1,085,779
85,000 Showa Shell Sekiyu 509,168
7,000 SMC Corp. 645,686
13,000 Sony Corp. 1,214,380
413,000 Sumitomo Metal Industries Ltd.
(a) 550,153
39,000 Takeda Chemical Industries 1,695,775
42,000 Tokio Marine & Fire Insurance
Co. Ltd. 489,455
79,000 Toppan Printing Co. 950,425
17,000 Toyota Motor Corp. 482,820
------------
27,892,239
------------
KOREA, REPUBLIC OF - 0.6%
COMMON STOCK
17,500 Kookmin Bank 238,544
9,500 Korea Electric Power Corp. 273,378
9,000 Pohang Iron & Steel Co. Ltd. 231,750
4,098 Samsung Electronics Co. 315,161
5 SK Telecom Co. Ltd. 5,780
- --------------------------------------------------------------------------------
13
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
SHARES VALUE US$
- --------- ------------
KOREA, REPUBLIC OF (CONCLUDED)
360 SK Telecom Co. Ltd., ADR $ 4,995
------------
1,069,608
------------
NETHERLANDS - 7.8%
COMMON STOCK
7,440 Akzo Nobel NV 336,493
41,960 ING Groep NV 2,588,053
43,868 Koninklijke Ahold NV 1,631,323
15,733 Oce NV 462,725
30,410 Philips Electronics NV 2,622,049
37,100 Royal Dutch Petroleum Co. 2,162,680
75,240 TNT Post Group NV 2,029,811
26,076 United Pan-Europe
Communications NV (a) 1,350,394
------------
13,183,528
------------
NEW ZEALAND - 0.6%
COMMON STOCK
74,000 Carter Holt Harvey Ltd. 108,489
171,100 Telecom Corp. of New Zealand 890,401
------------
998,890
------------
PHILIPPINES - 0.4%
COMMON STOCK
510,000 Ayala Land, Inc. 187,777
46,500 Manila Electric Co. 177,323
8,000 Philippine Long Distance
Telephone Co. 258,785
------------
623,885
------------
PORTUGAL - 0.9%
COMMON STOCK
79,910 Electricidade de Portugal SA 1,504,831
------------
SINGAPORE - 1.0%
COMMON STOCK
75,000 City Developments Ltd. 500,444
48,975 Development Bank of Singapore
Ltd. 520,550
45,895 Singapore Press Holdings Ltd. 677,525
------------
1,698,519
------------
SPAIN - 2.1%
COMMON STOCK
106,146 Endesa SA 2,362,741
24,245 Telefonica SA (a) 1,137,600
------------
3,500,341
------------
SWEDEN - 2.3%
COMMON STOCK
45,540 Electrolux AB 925,876
49,360 Securitas AB, "B" 733,582
SHARES VALUE US$
- --------- ------------
SWEDEN (CONCLUDED)
85,545 Telefonaktiebolaget LM
Ericsson, "B" $ 2,252,848
------------
3,912,306
------------
SWITZERLAND - 4.6%
COMMON STOCK
721 ABB AG 1,053,711
1,216 Novartis 1,783,523
171 Roche Holding AG 2,014,999
8,849 UBS AG 3,010,789
------------
7,863,022
------------
THAILAND - 0.2%
COMMON STOCK
24,000 Electricity Generating Public
Co. Ltd. (a) 53,349
22,000 PTT Exploration & Production
Public Co. Ltd. (a) 202,727
76,000 Siam Commercial Bank Public
Co. Ltd. (a) 100,340
------------
356,416
------------
UNITED KINGDOM - 22.9%
COMMON STOCK
207,270 Airtours plc 1,435,019
139,130 Allied Domecq plc 1,088,704
44,000 ARM Holdings plc (a) 473,949
358,660 ASDA Group plc 1,199,711
68,140 Bank of Ireland 1,366,086
174,630 BP Amoco plc 3,315,015
177,850 British Airways plc 1,410,305
40,010 British American Tobacco plc 335,951
73,270 British Energy plc 623,482
130,550 British Land Co. plc 1,192,877
187,350 British Sky Broadcasting Group
plc 1,656,071
127,140 British Telecom plc 2,137,153
137,420 Cable & Wireless plc 1,973,639
27,210 Elan Corp plc, ADR (a) 1,401,315
183,400 Electrocomponents plc 1,565,049
80,450 Glaxo Wellcome plc 2,380,808
122,000 Imperial Chemical Industries 1,321,989
119,730 Kingfisher plc 1,792,829
508,410 LASMO plc (a) 1,307,699
53,796 Lloyds TSB Group plc 866,602
206,580 Marks & Spencer plc 1,411,948
34,340 Pearson plc 730,945
34,850 RMC Group plc 527,453
408,300 Rolls-Royce plc (a) 1,893,323
83,780 Shell Transport & Trading Co. 627,932
351,620 Smith (David S.) Holdings plc 758,632
84,120 Tibbett and Britten Group plc 574,950
34,520 United Utilities plc 390,732
- --------------------------------------------------------------------------------
14
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
SHARES VALUE US$
- --------- ------------
UNITED KINGDOM (CONCLUDED)
113,214 Vodafone Group plc $ 2,087,173
150,243 Williams plc 1,032,940
------------
38,880,281
------------
Total Stock and Warrants
(cost $125,354,166) 152,317,357
PRINCIPAL
AMOUNT
- ------------
TIME DEPOSIT - 2.9%
M4,700,000 Commerzbank, London,
Certificates of
Participation, 2.5%, due
5/24/1999 (cost $4,990,460) 4,972,383
------------
VALUE US$
------------
Total Investments - 92.7%
(cost $130,344,626) $157,289,740
Other Assets Less Liabilities - 7.3% 12,452,502
------------
Total Net Assets - 100.0% $169,742,242
------------
------------
- ------------------
(a) Non-income producing security.
ADR - American Depository Receipts.
FORWARD FOREIGN CURRENCY CONTRACTS
CONTRACTS TO SELL
<TABLE>
<CAPTION>
UNDERLYING FACE
AMOUNT OF UNREALIZED
CONTRACT DATE CURRENCY UNITS VALUE APPRECIATION
- ------------- ------------------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C>
5/18/99 Japanese Yen 1,059,483,000 $ 9,345,355 $588,172
------------ --------
------------ --------
</TABLE>
OFFSETTING CONTRACTS
UNDERLYING FACE
CONTRACT DATE CURRENCY UNITS AMOUNT OF VALUE
- ------------- ------------------------- ------------- ----------------
5/17/99 Great Britain Pounds 1,989,000 $ 3,232,125
5/17/99 Great Britain Pounds 1,989,000 (3,191,568)
------------
$ 40,557
------------
------------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
15
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments (Note 2):
Investments, at cost $ 130,344,626
Net unrealized appreciation 26,945,114
-------------
Total Investments, at value 157,289,740
Cash 11,019,776
Net receivable for forward foreign currency contracts 628,729
Receivable for dividends 281,470
Receivable for interest 39,560
Receivable for tax reclaims 221,649
Receivable for investments sold 1,614,515
Prepaid expenses 11,656
Organization costs, net of amortization (Note 2) 3,710
-------------
Total Assets 171,110,805
-------------
LIABILITIES:
Payable for investments purchased 1,249,041
Payable to investment adviser (Note 3) 43,090
Payable to administrator (Note 3) 10,357
Payable to subadministrator (Note 3) 10,357
Accrued expenses and other liabilities 55,718
-------------
Total Liabilities 1,368,563
-------------
Net Assets $ 169,742,242
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
16
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend income (net of foreign withholding taxes of $132,528) $ 785,824
Interest income 228,592
------------
Total Investment Income 1,014,416
------------
EXPENSES:
Investment advisory (Note 3) 356,337
Administration (Note 3) 59,390
Subadministration (Note 3) 59,390
Interest holder recordkeeping (Note 3) 6,037
Custody 54,793
Accounting (Note 3) 37,000
Legal 14,617
Audit 28,533
Amortization of organization costs (Note 2) 1,237
Trustees 8,325
Pricing 8,424
Miscellaneous 11,812
------------
Total Expenses 645,895
Fees waived (Note 6) (52,734)
------------
Net Expenses 593,161
------------
NET INVESTMENT INCOME 421,255
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments sold 8,816,160
Net realized loss on foreign currency transactions (1,143,092)
------------
Net realized gain on investments and foreign currency transactions 7,673,068
------------
Net change in unrealized appreciation on investments 13,633,038
Net change in unrealized depreciation
on foreign currency transactions 881,242
------------
Net change in unrealized appreciation on investments
and foreign currency transactions 14,514,280
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS 22,187,348
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 22,608,603
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
17
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
Six Months Ended For the
April 30, 1999 Year Ended
(unaudited) October 31, 1998
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS, BEGINNING OF PERIOD $154,017,362 $ 211,683,857
------------ --------------
OPERATIONS:
Net investment income 421,255 2,672,044
Net realized gain on investments sold
and foreign currency transactions 7,673,068 22,208,848
Net change in unrealized appreciation
(depreciation) on investments and
foreign currency transactions 14,514,280 (14,480,610)
------------ --------------
Net increase in net assets
resulting from operations 22,608,603 10,400,282
------------ --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 20,493,043 43,502,940
Withdrawals (27,376,766) (111,569,717)
------------ --------------
Net decrease in net assets from transactions
in investors' beneficial interest (6,883,723) (68,066,777)
------------ --------------
Net increase (decrease) in net assets 15,724,880 (57,666,495)
------------ --------------
NET ASSETS, END OF PERIOD $169,742,242 $ 154,017,362
------------ --------------
------------ --------------
</TABLE>
FINANCIAL HIGHLIGHTS
Portfolio performance for the following periods:
<TABLE>
<CAPTION>
For the Six
Months For the Year Ended October
Ended April 30, 31,
1999 -----------------------------
(unaudited) 1998 1997 1996
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Ratio to Average Net Assets:
Expenses, including reimbursement/waiver of fees 0.75%(a) 0.75% 0.75% 0.75%
Expenses, excluding reimbursement/waiver of fees 0.82%(a) 0.77% 0.77% 0.77%
Net investment income, including
reimbursement/waiver of fees 0.53%(a) 1.39% 0.90% 1.10%
Portfolio Turnover Rate 46% 53% 36% 56%
</TABLE>
- ------------------------------------------------------------------------
(a) Annualized.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
18
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. ORGANIZATION
Schroder Capital Funds ("Schroder Core") was organized as a Delaware
business trust on September 7, 1995. Schroder Core, which is registered as an
open-end, management investment company under the Investment Company Act of
1940, as amended, currently has eight investment portfolios. Included in this
report is the International Equity Fund (the "Portfolio"), which is a
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. On May 28, 1999, the Portfolio
distributed all of its net assets to shareholders in complete liquidation and
ceased investment operations.
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 amounts could differ from
those estimates.
The following represent the significant accounting policies of the
Portfolio:
INVESTMENT 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 day or at the mean of the closing bid and ask prices
("mid-market price"). Securities traded in over-the-counter markets, or
listed securities for which no trade is reported on the valuation date, are
valued at the most recent reported mid-market price. Prices used for
valuations generally are provided by independent pricing services. Domestic
short-term investments having a maturity of 60 days or less, generally are
valued at amortized cost, which approximates market value. Foreign short-term
investments are valued at 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, 1999, the Portfolio 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 unrecoverable withholding tax. Interest income is recorded as
earned. Identified cost of investments sold is used to determine 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.
- --------------------------------------------------------------------------------
19
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Portfolio may enter into forward contracts to purchase or sell
foreign currencies to protect the U.S. dollar value of the underlying
portfolio of securities 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 average net assets.
ORGANIZATION 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 to the Portfolio. Pursuant to an Investment Advisory
Agreement, SCMI is entitled to receive an annual fee, payable monthly, of
0.45% of the average daily net assets of the Portfolio.
SCMI has informed the Trust that it expects on or about July 1, 1999 to
be merged into Schroder Investment Management North America Inc., a newly
organized Delaware corporation. SCMI and Schroder Investment Management North
America Inc. are both wholly owned subsidiaries of Schroder U.S. Holdings,
Inc.
ADMINISTRATOR AND SUBADMINISTRATOR
The administrator of the Portfolio is Schroder Fund Advisors Inc.
("Schroder Advisors"). The subadministrator of the Portfolio is Forum
Administrative Services, LLC ("FAdS"). Pursuant to their agreements, Schroder
Advisors and FAdS provide certain management and administrative services to
the Portfolio. For its services, Schroder Advisors is entitled to receive
compensation at an annual rate, payable monthly, of 0.075% of the Portfolio's
average daily net assets.
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 other charges based upon the
number and types of portfolio transactions. FAcS also provides interest
holder recordkeeping services to the Portfolio for which it receives $12,000
per year, plus certain other charges.
- --------------------------------------------------------------------------------
20
<PAGE>
- --------------------------------------------------------------------------------
International Equity Fund
- --------------------------------------------------------------------------------
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 securities) for the year ended April 30,
1999, aggregated $72,628,323 and $63,197,689, respectively.
NOTE 5. FEDERAL TAXES
The Portfolio is not required to pay federal income taxes on its net
investment income and net capital gain because 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 Portfolio's
interest holders in proportion to their holdings of the Portfolio (except for
gain and loss on certain contributed securities, which for tax purposes have
been allocated to the interest holder who contributed such securities)
regardless of whether such interest, dividends or gain have been distributed
by the Portfolio.
NOTE 6. WAIVER OF FEES
In order to limit the Portfolio's expenses, SCMI is contractually
obligated to reduce its compensation (and, if necessary, to pay certain other
portfolio expenses) until December 31, 1999, to the extent that the
Portfolio's net expenses exceed 0.75% of the Portfolio's average daily net
assets. Schroder Advisors, FAdS and FAcS may waive voluntarily all or a
portion of their fees from time to time. For the period ended April 30, 1999,
SCMI waived fees of $52,734.
- --------------------------------------------------------------------------------
21
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
TRUSTEES
Nancy A. Curtin, Chairman
David N. Dinkins
Peter E. Guernsey
Sharon L. Haugh
John I. Howell
Peter S. Knight
William L. Means
Clarence F. Michalis
Hermann C. Schwab
INVESTMENT ADVISER
Schroder Capital Management International Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
ADMINISTRATOR AND DISTRIBUTOR
Schroder Fund Advisors Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
CUSTODIAN
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
TRANSFER AND DIVIDEND
DISBURSING AGENT
Boston Financial Data Services
Two Heritage Drive
North Quincy, MA 02171
(800) 464-3108
COUNSEL
Ropes & Gray
One International Place
Boston, MA 02110
This report is for the information of the shareholders of the Schroder
International 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.
SIFSEMI0499
[SCHRODERS LOGO]
Schroder
International
Fund
SEMI-ANNUAL REPORT
April 30, 1999
(Unaudited)
Schroder Capital Funds (Delaware)
