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SCHRODER SERIES TRUST
PROSPECTUS SUPPLEMENT
to Advisor Shares Prospectus dated June 17, 1997
The name of Schroder Equity Value Fund has been changed to "Schroder Large
Capitalization Equity Fund". All references in the Prospectus to Schroder
Equity Value Fund should be considered references instead to Schroder Large
Capitalization Equity Fund.
The description of Schroder Equity Value Fund beginning on Page 5 of the
Prospectus should be replaced in its entirety with the following:
SCHRODER LARGE CAPITALIZATION EQUITY FUND
SCHRODER LARGE CAPITALIZATION EQUITY FUND'S INVESTMENT OBJECTIVE IS TO SEEK
LONG-TERM GROWTH OF CAPITAL. The Fund invests in common stocks and other
securities of companies with large market capitalizations that Schroder
believes offer the potential for long-term growth of capital.
The Fund will under normal circumstances invest primarily in equity
securities Schroder believes to be undervalued. In selecting such
securities, Schroder will focus on industries and issuers it believes offer
the possibility for growth of capital from earnings potential and other
factors not fully reflected in current market prices. Such factors may
include, for example, a company's probable future earnings, the ratio of
its market value to its book value, and its dividends, cash flow, financial
strength, debt-to-capital ratio, working assets, and competitive position,
as well as other factors Schroder may consider significant in a particular
industry or under varying market conditions. In identifying undervalued
securities, Schroder may make investment judgments contrary to those of
most investors.
The Fund will normally invest at least 65% of its total assets in equity
securities, including common and preferred stocks and warrants to purchase
common or preferred stocks, of companies with large market capitalizations
(generally more than $5 billion). The Fund may invest the remainder of its
assets in equity securities of smaller companies or in debt securities if
Schroder believes they would help achieve the Fund's objective. Debt
securities in which the Fund may invest will be rated, at the time of
investment, at least Baa by Moody's Investors Service, Inc. or BBB by
Standard & Poor's Corporation or, if unrated, determined by Schroder at the
time of investment to be of comparable quality. Securities rated Baa or
BBB lack outstanding investment characteristics and have speculative
characteristics and are subject to greater credit and market risks than
higher-rated securities. The Fund may also hold a portion of its assets in
cash or money market instruments.
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At times, Schroder may judge that conditions in the securities markets make
pursuing the Fund's basic investment strategy inconsistent with the best
interests of its shareholders. At such times, Schroder may temporarily use
alternate investment strategies primarily designed to reduce fluctuations
in the value of the Fund's assets. In implementing these "defensive"
strategies, the Fund would invest in high-quality debt securities, cash, or
money market instruments to any extent Schroder considers consistent with
such defensive strategies. It is impossible to predict when, or for how
long, the Fund will use these alternate strategies.
Until September 1997, the Fund was known as "Schroder Equity Value Fund."
September 12, 1997
