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SCHRODER CAPITAL FUNDS (DELWARE)
PROSPECTUS SUPPLEMENT DATED SEPTEMBER 14, 2000
To Investor Shares Prospectus dated March 1, 2000
1. SCHRODER INTERNATIONAL FUND - REDEMPTION FEE
Effective November 1, 2000, Schroder International Fund (the "Fund") will
impose a 2.00% redemption fee on Fund shares redeemed (including in
connection with an exchange) three months or less from their date of
purchase. The fee is not a sales charge (load); it will be paid directly to
the Fund.
The redemption fee will apply only to Fund shares purchased on or after
November 1, 2000. To the extent that the redemption fee applies, the price
you will receive when you redeem your shares is the net asset value next
determined after receipt of your redemption request in good order, minus the
redemption fee. The redemption fee is applied only against the portion of
your redemption proceeds that represents the lower of (i) the initial cost of
the shares redeemed and (ii) the net asset value of the shares at the time of
redemption, so that you will not pay a fee on amounts attributable to capital
appreciation of your shares. The redemption fee is not assessed on shares
acquired through the reinvestment of dividends or distributions paid by the
Fund.
For purposes of computing the redemption fee, redemptions by a shareholder to
which the fee applies will be deemed to have been made in the following
order: (i) from shares acquired prior to November 1, 2000; (ii) from shares
purchased through the reinvestment of dividends and distributions paid by the
Fund; and (iii) from all other shares, on a first-purchased, first-redeemed
basis. Only shares described in clause (iii) above that are redeemed three
months or less from their date of purchase will be subject to the redemption
fee.
Please contact SIMNA at (800) 464-3108 if you have questions as to whether
the redemption fee applies to some or all of your shares.
To reflect the Fund's redemption fee, "Shareholder Fees" on page 14 of the
Prospectus is amended in its entirety as follows:
SHAREHOLDER FEES (paid directly from your investment):
Maximum Sales Load Imposed on Purchases...............................None
Maximum Deferred Sales Load...........................................None
Maximum Sales Load Imposed on Reinvested Dividends....................None
Redemption Fee:
Schroder International Fund..............................2.00%(1)
All other Funds.............................................None
Exchange Fee..........................................................None
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(1) Shares of Schroder International Fund held for three months or less are
subject to a redemption fee of 2.00%. The fee applies only to shares of the
Fund purchased on or after November 1, 2000.
2. SCHRODER INTERNATIONAL FUND - PORTFOLIO MANAGER
Deborah Chaplin has joined Michael Perelstein as a portfolio manager for
Schroder International Fund. Ms. Chaplin is added under the caption
"Portfolio Manager" for Schroder International Fund in the table on page 21
of the Prospectus. Ms. Chaplin has been employed as an investment
professional at Schroder since May 2000. She is an Executive Vice President,
Director and Senior Investment Officer of Schroder. Prior to joining
Schroder, Ms. Chaplin was a Managing Director and Lead Portfolio Manager at
Scudder Kemper Investments and a Manager at Spare, Kaplan,
Bischel & Associates.
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3. SCHRODER INTERNATIONAL SMALLER COMPANIES FUND
The second sentence under "Schroder International Smaller Companies Fund" on
the front cover of the Prospectus is restated in its entirety to read as
follows: "The Fund invests primarily in equity securities of companies with
market capitalizations of $2.2 billion or less." In addition, the first
sentence under "Principal Investment Strategies" for Schroder International
Smaller Companies Fund on page 7 of the Prospectus is restated in its
entirety as follows: "The Fund normally invests at least 65% of its total
assets in equity securities of smaller companies (with market capitalizations
of $2.2 billion or less at the time of investment) domiciled outside the
United States."
4. SCHRODER U.S. SMALLER COMPANIES FUND
The second sentence under "Schroder U.S. Smaller Companies Fund" on the front
cover of the Prospectus is restated in its entirety to read as follows: "The
Fund invests in equity securities of issuers domiciled in the United States
with market capitalizations of $2.2 billion or less." In addition, the first
sentence under "Principal Investment Strategies" for Schroder U.S. Smaller
Companies Fund on page 11 of the Prospectus is restated in its entirety as
follows: "The Fund normally invests at least 65% of its total assets in
equity securities of companies in the United States that have (at the time of
investment) market capitalizations of $2.2 billion or less."
5. SCHRODER MICRO CAP FUND
The second sentence under "Schroder Micro Cap Fund" on the front cover of the
Prospectus is restated in its entirety to read as follows: "The Fund invests
in equity securities of issuers domiciled in the United States with market
capitalizations of $500 million or less." In addition, the second sentence
under "Principal Investment Strategies" for Schroder Micro Cap Fund on page
12 of the Prospectus is restated in its entirety as follows: "A micro cap
company is a company with, at the time of initial investment, a market
capitalization of $500 million or less."
6. SCHRODER U.S. DIVERSIFIED GROWTH FUND
The name of Schroder U.S. Diversified Growth Fund has been changed to
"Schroder U.S. Large Cap Equity Fund."
The third sentence under "Principal Investment Strategies" for Schroder U.S.
Diversified Growth Fund on page 10 of the Prospectus is restated in its
entirety as follows: "The Fund normally invests in securities of companies
with market capitalizations of more than $5 billion (at the time of
investment)."
The information relating to Schroder U.S. Diversified Growth Fund and Mr.
Paul Morris is deleted from the table under "Portfolio Managers" on page 22
of the Prospectus. Investment decisions for that Fund are made by Schroder's
U.S. equity investment team.
7. SCHRODER EMERGING MARKETS FUND
The following is inserted immediately prior to the last sentence of the
second paragraph under the heading "Principal Investment Strategies" on page
5 of the prospectus: "Schroder has determined, based on an analysis of
current economic and political factors pertaining to Hong Kong, that Hong
Kong should be considered as an emerging market country for purposes of the
Fund's eligible investments."
