<PAGE>
- ---- ----
SCHRODER SERIES TRUST
Schroder Equity
Value Fund
Schroder Small
Capitalization Value
Fund
Schroder Investment
Grade Income Fund
Schroder Short-Term
Investment Fund
SEMI-ANNUAL REPORT
Schroder Series Trust
April 30, 1997
P.O. Box 8507
(Unaudited)
Boston, Mass. 02266
1-800-464-3108
0497WS
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
INVESTMENT MANAGER
Schroder Capital Management Inc. ("SCM"), is an indirect wholly owned subsidiary
of Schroders plc. SCM or its affiliates have been investment managers since
Wertheim & Co. was founded in 1927. The firm was renamed in 1995 following its
integration with the Schroder Investment Management Group which manages in
excess of $150 billion for clients globally. The new organization now has an
expanded capital base as well as total global representation in financial
markets. As of March 31, 1997, SCM had over $4 billion in assets under
management.
June 23, 1997
Dear Shareholder:
We are pleased to present the semi-annual report for Schroder Series Trust for
the six month period ending April 30, 1997.
The six-month period covered by the report was one of continued strength for the
U.S. equity markets and one in which the fundamental economic background in the
U.S. remained favorable. Growth in the first quarter of 1997 was significantly
faster than most commentators had predicted late in 1996, and exceeded our own
relatively optimistic expectations. That this growth continues to be achieved
with little upward pressure on inflation is encouraging, but equally prompts
questions as to its sustainability when the economy is operating with so little
slack. It is therefore not surprising that markets have become more volatile in
the last few months, reflecting the debate as to the timing of interest rate
increases and the probability of wage cost pressures showing up in the published
inflation indices as the year progresses.
It appears likely that such pressures will materialize and that further interest
rate increases should be expected in the second half of the year. This is likely
to restrict the scope for gains in the market and to lead to additional
volatility. We nevertheless expect any upward pressure on inflation to be very
modest and hence the extent of interest rate increases needed to control it to
be low by historic standards, perhaps only 1% in total. It is moreover
encouraging that the very significant changes evident in U.S. business in the
last few years, reflected in improved profitability and productivity, appear to
remain an important corporate goal.
Thank you for your support and interest in Schroder Series Trust.
Sincerely,
Ashbel C. Williams, Jr.
President
<PAGE>
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SCHRODER EQUITY VALUE FUND
- ------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS AS OF APRIL 30, 1997
Strong corporate profit growth and an inactive price environment overcame
occasional fears of an overextended economy and the threat of higher interest
rates to produce well above-average equity market returns for the six months
ended April 30, 1997. The Schroder Equity Value Fund rose 13.80% for the first
half of its fiscal year as compared with a 14.72% increase in the S&P 500 Index
over the same period. Relative performance benefited from management's stock
selection in consumer staples and technology as well as an overweighting in the
latter sector early in the period. The Fund's underweighting in consumer
cyclicals and basic industries also aided relative performance while its
underweight position in healthcare and cash position, though not immoderate,
constrained performance.
Management continues to expect further tightening of short-term interest rates
from the Federal Reserve Bank and slower economic growth in the second half of
1997 and in 1998. We believe that foreign economies are likely to grow faster
than the U.S. economy and that domestically, the capital goods sector will be
stronger than the consumer sector. Based on this, the Fund's most concentrated
position relative to the S&P 500 is in the capital goods sector, where we have
the greatest confidence in the prospective earnings growth of our holdings and
where we find attractive valuations relative to the market for that earnings
growth. Consumer cyclicals and consumer durables conversely remain
underweighted. Finally, the portfolio currently has no holdings in the
telecommunications sector, where secularly, we foresee large capital
requirements in a fiercely competitive environment.
Looking forward, our greatest concern remains corporate profits which are likely
to come under pressure from increasing labor costs, rising depreciation
expenses, and limited pricing power. Management's strategy will continue to
focus on those companies with visible earnings prospects, catalysts for growth,
strong management teams, and financial or operating flexibility for the more
difficult times ahead. We will also continue to be diligent in buying stocks at
attractive valuations at this stage in the market cycle toward the goal of a
portfolio characterized by high relative earnings growth and low relative price
to earnings multiples.
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2
<PAGE>
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SCHRODER EQUITY VALUE FUND
- ------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1997
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
<S> <C>
SECURITY % OF NET ASSETS
<CAPTION>
- ------------------------------------------------
<S> <C>
Colgate Palmolive Co. 4.2%
Textron Inc. 3.9%
General Electric Co. 3.8%
Allied-Signal Inc. 3.8%
Mobil Corp. 3.5%
Cisco Systems Inc. 3.2%
BankAmerica Corp. 3.2%
American International Group
Inc. 3.1%
Philip Morris Cos. 2.9%
Wal Mart Stores Inc. 2.9%
---------
Total 34.5 %
<CAPTION>
INVESTMENT BY INDUSTRY
INDUSTRY % OF NET ASSETS
- ------------------------------------------------
<S> <C>
Basic Industry 3.2%
Capital Goods 19.1%
Consumer Cyclical 5.8%
Consumer Staples 16.2%
Energy 9.5%
Financial Services 15.4%
Healthcare 8.1%
Technology 9.6%
Transportation 1.9%
Utilities 4.5%
Cash Equivalents and Other Net
Assets 6.7%
---------
Total 100.0 %
</TABLE>
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3
<PAGE>
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SCHRODER SMALL CAPITALIZATION VALUE FUND
- ------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS AS OF APRIL 30, 1997
The Schroder Small Capitalization Value Fund appreciated 0.51% for the three
month period ended April 30, 1997, substantially outperforming its benchmark,
the Russell 2000 Index, which declined 6.77% over the same period. For the six
months ended April 30, 1997, the Fund was up 15.71% versus a 1.61% increase for
the Russell 2000 Index.
Over the last six months, large cap equities have substantially outperformed
small cap equities. As of April 30, a striking valuation dichotomy is apparent.
While large cap equity indices are trading toward the high end of historic
valuation parameters, on a price-to-cash flow, price-to-sales, and price-to-book
value basis small cap indices are trading beneath their 1991 valuation levels,
when the last small cap period of relative outperformance began. While being
inexpensive may be insufficient to spark a rally, earnings for large companies
are beginning to decelerate due to the strong value of the U.S. dollar,
continued low pricing power, increasing cost pressures, and less restructuring
savings. Simultaneously, their valuations are at historic highs. Small cap
stocks generally have less global exposure and, therefore, less vulnerability to
a strong dollar, enabling their relative earnings growth to exceed large
companies. At their current low valuation levels, small caps may be perceived as
having lower risk which could spark some reallocation of large cap equity into
the small cap market.
Value style investing has outperformed growth in the small cap arena since the
sharp market correction last summer. Management believes that concern with the
overall market level and the direction of interest rates will continue to favor
our valuation discipline and strict fundamental analysis. We attribute the
Fund's significant outperformance over its benchmark for the six months ended
April 30, to our focused, bottom-up, stock-by-stock portfolio building process
and close monitoring of each stock's reward to risk ratio. Our universe of
eligible portfolio candidates has never been greater. In the rush to chase the
market's most liquid issues, small cap equities have fallen between the cracks.
We endeavor to identify the best businesses with the best prospects and the best
management within our historically cheap universe.
Merger and acquisition activity has accelerated over the last year. Large
companies with inflated equity valuations and significantly improved cash flows
have the means to buy smaller entities at reasonable prices. For example, the
Fund purchased a position in MEASUREX in late November when the company
consistently appeared in the new low list. Trading at less than half the
multiple of its only public look-alike, Honeywell, with a five year earnings
growth rate and other key financial measures which dwarfed the Honeywell record,
Measurex jumped out in our reward-to-risk analysis. Within six weeks of our
purchase, Honeywell bought Measurex at a 47% premium to our purchase cost.
Although we seldom achieve such instant gratification, we believe the Measurex
story plainly illustrates the valuation discrepancy between large and small cap
universes. We like the values and the valuations of our small cap universe.
While we cannot rule out another sharp overall market correction which would
take down everything initially, we do believe that value issues will recover the
fastest from such a sell-off as investors realize they were not overvalued in
the first place.
- --------------------------------------------------------------------------------
4
<PAGE>
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SCHRODER SMALL CAPITALIZATION VALUE FUND
- ------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1997
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
<S> <C>
SECURITY % OF NET ASSETS
<CAPTION>
- ------------------------------------------------
<S> <C>
Burr Brown Corp. 3.6%
Stratus Computer Inc. 3.5%
Western National Corp. 3.4%
Wyman Gordon Co. 3.4%
Energy Ventures Inc. 3.4%
Gerber Scientific Inc. 3.3%
AptarGroup Inc. 3.3%
WestPoint Stevens Inc. 3.3%
Data General Corp. 3.3%
Minerals Technologies Inc. 3.1%
---------
Total 33.6 %
<CAPTION>
INVESTMENT BY INDUSTRY
INDUSTRY % OF NET ASSETS
- ------------------------------------------------
<S> <C>
Autos and Transportation 1.6%
Consumer Discretionary 7.2%
Consumer Staples 2.4%
Energy 11.9%
Financial Services 24.3%
Health Care 8.0%
Materials and Processing 10.5%
Producer Durables 13.0%
Technology 16.2%
Other 3.3%
Cash Equivalents and Other Net
Assets 1.6%
---------
Total 100.0 %
</TABLE>
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5
<PAGE>
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SCHRODER INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS AS OF APRIL 30, 1997
The Schroder Investment Grade Income Fund returned 1.02% for the six months
ended April 30, 1997, compared to its benchmark, the Lehman Government/Corporate
Index, which returned +1.30% over the same period.
The Fund underperformed as U.S. Treasury yields on the entire yield curve rose
between thirty and forty basis points during the six month period. Stronger than
expected economic growth led to a clear warning, delivered by Federal Reserve
Chairman Alan Greenspan, that monetary policy could be tightened to contain
inflationary pressures. The Fed Funds target was raised by 25 basis points on
March 25, 1997.
Management has responded to shifting relative values by reducing the Fund's
corporate bond exposure in favor of mortgage-backed securities. After several
years of strong corporate profit growth, the yield premium of corporate
securities, relative to U.S. Treasury issues, had contracted to near
historically low levels. Given the maturity of the economic cycle, and the
likelihood that profit growth will now be on a declining trend, management's
opinion is that these yield premiums are unlikely to contract further.
Simultaneously, mortgage-backed security yield premiums, while at their long
term average relative to U.S. Treasury issues, had widened relative to corporate
issues. The rate of mortgage prepayments, which can impact the security's yield
and average maturity, had slowed, rendering mortgage-backed a more attractive
sector. In the six months ended April 30, 1997, this sector's weighting was
increased from 14.6% to 25.1%.
For the balance of 1997, management anticipates that economic growth will remain
above its longer term non-inflationary trend. The Federal Reserve will likely
raise monetary policy by an additional fifty basis points during this period. As
a result, we are maintaining the Fund's cautious duration policy. On April 30,
1997 the Fund's modified duration was 4.3 years, or fifteen percent shorter than
its benchmark. Corporate sector yield premiums remain near historic lows. Within
the corporate sector, there is only a minimal incremental yield offered by
companies with lower investment grade quality ratings. Management intends to
continue to increase the credit quality of the remaining corporate issues in the
Fund. The corporate sector's weighting will be further reduced, favoring both
U.S. Treasury issues and mortgage securities.
- --------------------------------------------------------------------------------
6
<PAGE>
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SCHRODER INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1997
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
<S> <C>
SECURITY % OF NET ASSETS
<CAPTION>
- ------------------------------------------------
<S> <C>
U.S. Treasury Note
6.125% 05/15/98 8.2%
U.S. Treasury Note
7.250% 08/15/04 5.2%
U.S. Treasury Note
7.500% 10/31/99 4.5%
U.S. Treasury Note
7.375% 11/15/97 4.2%
Ford Motor Credit Co.
6.250% 12/08/05 3.9%
Lucent Technologies
7.250% 07/15/06 3.3%
FNMA
6.400% 09/27/05 3.3%
FHLB
6.225% 10/24/05 3.1%
FNMA PL# 303909
7.000% 05/01/26 3.0%
FNMA PL# 250030
7.000% 05/01/24 2.9%
----------
Total 41.6 %
<CAPTION>
INVESTMENT BY SECTOR
SECTOR % OF NET ASSETS
- ------------------------------------------------
<S> <C>
Corporate Notes 31.6%
Government Agencies 11.5%
Mortgages 25.1%
U.S. Treasury Issues 26.8%
Cash Equivalents and Other
Net Assets 5.0%
----------
Total 100.0 %
<CAPTION>
CREDIT QUALITY
% OF MARKET VALUE
RATING OF INVESTMENTS
- ------------------------------------------------
<S> <C>
U.S. Treasury Issues 26.9%
Government Agencies 36.7%
AAA 0.0%
AA 4.7%
A 23.8%
BAA 7.9%
----------
Total 100.0 %
</TABLE>
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7
<PAGE>
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SCHRODER SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS AS OF APRIL 30, 1997
The Schroder Short Term Investment Fund returned 2.14% for the six months ended
April 30, 1997, compared to its benchmark, the 90 day U.S. Treasury Bill's
return of 2.60%.
The Federal Reserve raised short term interest rates by twenty-five basis points
on March 25, 1997. The tightening of monetary policy was, according to the Fed's
notes, "taken in light of persisting strength in demand which is increasing the
risk of inflation imbalances developing in the economy." Management's economic
outlook anticipates the continuation of above trend growth for the balance of
1997. We expect the monetary authorities to raise interest rates by an
additional fifty basis points in the next two quarters.
The yield relationships of alternative securities within the money markets have
remained broadly unchanged, during the six month period ended April 30, 1997. As
a result of the interest rate increase, the yields offered by investing in asset
and mortgage-backed issues have increased more than the 90 day U.S. Treasury
bill yield. Should the yield premium of this sector continue to widen,
management anticipates an allocation of Fund assets to this market.
Management's fundamental research process has continued to expand the list of
approved corporate issuers whose short-dated paper may be utilized as other
issues mature within the portfolio.
- --------------------------------------------------------------------------------
8
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1997
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
<S> <C>
SECURITY % OF NET ASSETS
<CAPTION>
- ------------------------------------------------
<S> <C>
FHLB Note
5.990% 2/9/98 4.7%
FNMA Floating Rate Note
6.016% 4/14/00 4.7%
Travelers Group Note
5.750% 4/15/98 4.7%
American Express Credit
Corp.
C/P 5/21/97 4.7%
Carnival Corp.
5.750% 3/15/98 4.7%
General Electric Capital
Corp.
C/P 6/3/97 4.7%
US Treasury Note
5.125% 2/28/98 4.7%
Prudential Funding Corp.
C/P 6/17/97 4.7%
Walt Disney Co.
C/P 7/16/97 4.6%
Ford Motor Credit Corp.
C/P 7/22/97 4.6%
----------
Total 46.8 %
<CAPTION>
INVESTMENT BY SECTOR
SECTOR % OF NET ASSETS
- ------------------------------------------------
<S> <C>
Asset and Mortgage Backed
Issues 1.1%
Commercial Paper 37.2%
Corporate Notes 27.8%
U.S. Agency Discount Notes 15.4%
U.S. Treasury Notes and
Agencies 18.6%
Cash Equivalents and Other
Net Assets (0.1)%
----------
Total 100.0 %
<CAPTION>
CREDIT QUALITY
% OF MARKET VALUE
RATING OF INVESTMENTS
- ------------------------------------------------
<S> <C>
A1/P1 (C/P) 38.4%
US Treasury/Agency 34.2%
AAA 27.4%
AA 0.0%
----------
Total 100.0 %
</TABLE>
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9
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR ENDED INCEPTION TO ONE YEAR ENDED INCEPTION TO
MARCH 31, 1997 MARCH 31, 1997* APRIL 30, 1997 APRIL 30, 1997*
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Schroder Equity Value Fund............. 15.62% 12.96% 19.08% 14.02%
Schroder Small Capitalization Value
Fund.................................. 18.39% 12.85% 14.14% 13.75%
Schroder Investment Grade Income
Fund.................................. 3.37% 4.43% 5.66% 4.75%
Schroder Short-Term Investment Fund.... 4.82% 4.11% 4.66% 4.15%
</TABLE>
*From commencement of operations (February 16, 1994 for Schroder Equity Value
Fund and Schroder Small Capitalization Value Fund; February 22, 1994 for
Schroder Investment Grade Income Fund and January 11, 1994 for Schroder
Short-Term Investment Fund).
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS.
RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE
OF AN INVESTMENT IN A FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
THE VIEWS EXPRESSED IN THIS REPORT WERE THOSE OF THE FUND'S PORTFOLIO MANAGERS
AS OF THE DATES SPECIFIED, 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 FUNDS IN UNDERSTANDING
THEIR INVESTMENTS IN THE FUNDS AND DO NOT CONSTITUTE INVESTMENT ADVICE:
INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS.
- --------------------------------------------------------------------------------
10
<PAGE>
(This page has been left blank intentionally.)
- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EQUITY VALUE FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMMON STOCKS
BASIC INDUSTRY - (3.2%)
18,300 Ferro Corporation 569,588
16,900 Reynolds Metals Company 1,147,087
-----------
1,716,675
CAPITAL GOODS - (19.1%)
27,900 Allied Signal, Incorporated 2,015,775
851 Boeing Company 83,930
15,000 Fluor Corporation 825,000
18,400 General Electric Company 2,040,100
23,000 General Signal Corporation 902,750
18,200 McDonnell Douglas Corporation 1,080,625
17,500 Rockwell International Corporation 1,163,750
18,400 Textron, Incorporated 2,049,300
-----------
10,161,230
CONSUMER CYCLICAL - (5.8%)
2,900 Eastman Kodak Company 242,150
24,000 McDonald's Corporation 1,287,000
54,500 Wal Mart Stores, Incorporated 1,539,625
-----------
3,068,775
CONSUMER STAPLES - (16.2%)
27,400 Albertson's, Incorporated 904,200
20,000 Colgate Palmolive Company 2,220,000
15,700 CPC International, Incorporated 1,297,212
21,400 Kimberly Clark Corporation 1,096,750
39,400 Philip Morris Companies, Incorporated 1,551,375
5,700 Procter & Gamble Company 716,775
18,400 Rite Aid Corporation 846,400
-----------
8,632,712
ENERGY - (9.5%)
17,500 Amerada Hess Corporation 850,937
12,200 Amoco Corporation 1,020,225
19,600 Chevron Corporation 1,342,600
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
ENERGY - (CONTINUED)
14,400 Mobil Corporation 1,872,000
-----------
5,085,762
FINANCIAL SERVICES - (15.4%)
21,600 Allstate Corporation 1,414,800
12,700 American International Group,
Incorporated 1,631,950
14,500 BankAmerica Corporation 1,694,687
9,400 Citicorp 1,058,675
7,800 General Reinsurance Corporation 1,304,550
19,900 Travelers Group, Incorporated 1,101,963
-----------
8,206,625
HEALTHCARE - (8.1%)
16,400 American Home Products Corporation 1,086,500
17,700 Bristol-Myers Squibb Company 1,159,350
27,400 Columbia/HCA Healthcare Corporation 959,000
38,400 Pharmacia & Upjohn, Incorporated 1,137,600
-----------
4,342,450
TECHNOLOGY - (9.6%)
16,400 Autodesk, Incorporated 582,200
33,300 Cisco Systems, Incorporated (1) 1,723,275
7,400 Intel Corporation 1,133,125
13,400 Linear Technology Corporation 673,350
25,700 LSI Logic Corporation (1) 983,025
-----------
5,094,975
TRANSPORTATION - (1.9%)
32,300 Ryder Systems, Incorporated 1,005,338
-----------
UTILITIES - (4.5%)
19,300 FPL Group, Incorporated 861,263
33,100 GTE Corporation 1,518,462
-----------
2,379,725
-----------
TOTAL COMMON STOCKS
(Cost $39,073,025) - 93.3% 49,694,267
-----------
</TABLE>
See notes to financial statements.
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12
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EQUITY VALUE FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ Value $
--------- -----------
<C> <S> <C>
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (7.5%)
3,999,000 State Street Bank and Trust Company
5.000% 05/01/1997 (2)
(Cost $3,999,000) - 7.5% 3,999,000
-----------
TOTAL INVESTMENTS
(Cost $43,072,025) - 100.8% 53,693,267
LIABILITIES IN EXCESS
OF OTHER ASSETS - (0.8)% (449,846)
-----------
NET ASSETS - 100.0% $53,243,421
-----------
-----------
</TABLE>
(1) Non-income producing security.
(2) The repurchase agreement, dated 4/30/97, with a repurchase price of
$3,999,555, is collateralized by a $3,775,000 United States Treasury Note,
8.75%, 8/15/00.
See notes to financial statements.
- --------------------------------------------------------------------------------
13
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMMON STOCKS
AEROSPACE/DEFENSE - (3.4%)
120,000 Wyman Gordon Company (1) 2,520,000
-----------
BANKS - (4.1%)
31,000 Bank United Corporation 945,500
44,600 Hibernia Corporation 574,225
18,900 InterWest Bancorp, Incorporated 538,650
4,200 Silicon Valley Bancshares (1) 147,000
65,400 Sovereign Bancorp, Incorporated 801,150
-----------
3,006,525
BRANDED CONSUMER
PRODUCTS - (1.5%)
41,000 K2, Incorporated 1,071,125
-----------
BUILDING CONSTRUCTION - (0.2%)
3,900 Stone & Webster, Incorporated 149,175
-----------
BUSINESS SERVICES - (5.2%)
71,000 Jacobs Engineering Group, Incorporated
(1) 1,810,500
46,000 Policy Management Systems Corporation
(1) 2,001,000
-----------
3,811,500
CAPITAL EQUIPMENT - (6.8%)
148,000 Gerber Scientific, Incorporated 2,442,000
57,000 Kollmorgen Corporation 733,875
61,000 Waters Corporation (1) 1,807,125
-----------
4,983,000
CHEMICALS - (7.2%)
30,000 Cambrex Corporation 1,016,250
65,000 Minerals Technologies, Incorporated 2,283,125
72,000 OM Group, Incorporated 2,007,000
-----------
5,306,375
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMPUTERS & BUSINESS
EQUIPMENT - (6.7%)
128,000 Data General Corporation (1) 2,400,000
66,000 Stratus Computer, Incorporated (1) 2,565,750
-----------
4,965,750
CONSUMER ELECTRONICS - (2.4%)
47,000 Harman International Industries,
Incorporated 1,797,750
-----------
DRUGS & HEALTH CARE - (5.5%)
45,200 Alpharma, Incorporated 655,400
39,500 Genesis Health Ventures, Incorporated
(1) 1,180,063
48,500 R. P. Scherer Corporation (1) 2,231,000
-----------
4,066,463
ELECTRONICS - (3.7%)
91,000 Burr-Brown Corporation (1) 2,684,500
-----------
FINANCIAL SERVICES - (4.8%)
46,700 AmVestors Financial Corporation 747,200
17,000 Eaton Vance Corporation 752,250
52,000 Liberty Financial Companies,
Incorporated 2,047,500
-----------
3,546,950
GAS EXPLORATION - (5.4%)
68,000 Parker & Parsley Petroleum Company 2,244,000
111,000 Snyder Oil Corporation 1,762,125
-----------
4,006,125
INSURANCE - (15.4%)
50,000 Delphi Financial Group, Incorporated (1) 1,775,000
38,300 Horace Mann Educators Corporation 1,795,312
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
14
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
COMMON STOCKS
INSURANCE - (CONTINUED)
37,400 Liberty Corporation 1,449,250
51,500 Protective Life Corporation 2,278,875
36,000 Vesta Insurance Group, Incorporated 1,503,000
98,000 Western National Corporation 2,523,500
-----------
11,324,937
MANUFACTURING - (5.8%)
92,000 Greenfield Industries, Incorporated 1,874,500
62,000 WestPoint Stevens, Incorporated (1) 2,425,750
-----------
4,300,250
PACKAGING - (3.3%)
61,000 Aptargroup, Incorporated 2,440,000
-----------
PETROLEUM SERVICES - (6.4%)
37,000 Energy Ventures, Incorporated (1) 2,474,375
161,000 Tuboscope Vetco International
Corporation (1) 2,254,000
-----------
4,728,375
PUBLISHING - (2.4%)
86,000 Harland John H. Company 1,773,750
-----------
REAL ESTATE - (3.3%)
57,000 Beacon Properties Corporation 1,759,875
31,800 MGI Properties, Incorporated 659,850
-----------
2,419,725
<CAPTION>
Shares Value $
--------- -----------
<C> <S> <C>
SOFTWARE - (3.1%)
21,000 Sybase, Incorporated (1) 309,750
136,000 Symantec Corporation (1) 1,955,000
-----------
2,264,750
TRANSPORTATION - (1.7%)
37,000 Wisconsin Central Transportation
Corporation (1) 1,211,750
-----------
TOTAL COMMON STOCKS
(Cost $58,840,269) - 98.3% 72,378,775
-----------
<CAPTION>
Principal
Amount $
---------
<C> <S> <C>
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (1.9%)
1,385,000 State Street Bank and Trust Company
5.000% 05/01/1997 (2)
(Cost $1,385,000) - 1.9% 1,385,000
-----------
TOTAL INVESTMENTS
(Cost $60,225,269) - 100.2% 73,763,775
-----------
LIABILITIES IN EXCESS
OF OTHER ASSETS - (0.2)% (125,166)
-----------
NET ASSETS - 100.0% $73,638,609
-----------
-----------
</TABLE>
(1) Non-income producing security.
(2) The repurchase agreement, dated 4/30/97, with a repurchase price of
$1,395,192, is collateralized by a $1,310,000 United States Treasury Note,
8.75%, 8/15/00.
See notes to financial statements.
- --------------------------------------------------------------------------------
15
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
GOVERNMENT AND
AGENCY SECURITIES
FEDERAL AGENCIES - (3.1%)
700,000 Federal Home Loan Bank Consolidated
Discount Notes
6.225% 10/24/2005 667,009
-----------
FEDERALLY CHARTERED - (8.4%)
Federal National Mortgage Association
650,000 6.250% 08/12/2003 624,832
500,000 6.320% 12/23/2003 484,170
725,000 6.400% 09/27/2005 698,980
-----------
1,807,982
U. S. GOVERNMENT
SECURITIES - (26.8%)
500,000 United States Treasury Bond
7.125% 02/15/2023 504,350
United States Treasury Notes
1,755,000 6.125% 05/15/1998 1,757,808
330,000 6.250% 10/31/2001 326,321
200,000 7.000% 07/15/2006 203,358
1,075,000 7.250% 08/15/2004 1,110,367
900,000 7.375% 11/15/1997 907,326
950,000 7.500% 10/31/1999 974,671
-----------
5,784,201
-----------
TOTAL GOVERNMENT
AND AGENCY SECURITIES
(Cost $8,194,621) - 38.3% 8,259,192
-----------
MORTGAGE BACKED
SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATIONS - (9.3%)
Federal Home Loan Mortgage Corporation
250,000 Series 1698 Class 1698 G
6.000% 05/15/2008 241,210
500,000 Series 1543 Class 1543 PJ
7.000% 10/15/2022 489,505
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS - (CONTINUED)
Federal National Mortgage Association
575,000 Tranche 1997 1 Class B
6.500% 02/18/2004 559,947
250,000 Tranche 1996 53 Class M
6.500% 12/18/2011 233,290
500,000 Series 1997 25 Class VB
7.000% 09/18/2012 488,495
-----------
2,012,447
MORTGAGE PASS-THROUGH
SECURITIES - (15.8%)
567,399 Federal Home Loan Mortgage Corporation
Pool # G00432
8.000% 01/01/2026 576,443
Federal National Mortgage Association
579,874 Pool # 303945
7.000% 12/01/2010 574,620
651,637 Pool # 250030
7.000% 05/01/2024 631,886
653,896 Pool # 303909
7.000% 05/01/2026 634,076
Government National Mortgage Association
601,653 Pool # 780350
6.500% 05/15/2009 589,620
384,020 Pool # 423825
8.000% 06/15/2026 389,420
-----------
3,396,065
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $5,414,396) - 25.1% 5,408,512
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
16
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
CORPORATE BONDS
FINANCE & BANKING - (17.5%)
350,000 Associates Corporation of North America
6.400% 10/20/2002 341,054
500,000 Citicorp
7.125% 09/01/2005 496,990
500,000 Dean Witter Discover & Company
6.875% 03/01/2003 493,240
900,000 Ford Motor Credit Company
6.250% 12/08/2005 840,384
General Motors Acceptance Corporation
300,000 6.750% 07/18/2003 295,056
250,000 6.750% 10/06/2003 245,783
400,000 Merrill Lynch & Company, Incorporated
6.640% 09/19/2002 394,124
100,000 NCNB Corporation
10.200% 07/15/2015 123,437
550,000 Sears Roebuck Acceptance Corporation
6.500% 10/04/2000 544,511
-----------
3,774,579
INDUSTRIALS - (4.7%)
650,000 Nabisco, Incorporated
7.050% 07/15/2007 629,759
395,000 Nike, Incorporated
6.375% 12/01/2003 382,546
-----------
1,012,305
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
LEISURE TIME - (2.8%)
575,000 Royal Caribbean Cruises Limited
8.250% 04/01/2005 598,569
-----------
OIL - (1.3%)
265,000 Chevron Corporation
8.110% 12/01/2004 277,158
-----------
TECHNOLOGY - (3.2%)
700,000 Lucent Technologies, Incorporated
7.250% 07/15/2006 704,550
-----------
TRANSPORTATION - (2.1%)
500,000 Burlington Northern Santa Fe
6.875% 02/15/2016 456,085
-----------
TOTAL CORPORATE BONDS
(Cost $6,927,287) - 31.6% 6,823,246
-----------
SHORT TERM INVESTMENT
REPURCHASE AGREEMENT - (4.6%)
986,000 State Street Bank and Trust Company
5.000% 05/01/1997 (1)
(Cost $986,000) - 4.6% 986,000
-----------
TOTAL INVESTMENTS
(Cost $21,522,304) - 99.6% 21,476,950
OTHER ASSETS LESS LIABILITIES - 0.4% 85,894
-----------
NET ASSETS - 100.0%$ 21,562,844
-----------
-----------
</TABLE>
(1) The repurchase agreement, dated 4/30/97, with a repurchase price of
$986,137, is collateralized by a $935,000 United States Treasury Note,
8.75%, 8/15/00.
See notes to financial statements.
- --------------------------------------------------------------------------------
17
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
ASSET BACKED SECURITY
AUTO LOAN - (0.2%)
51,083 General Motors Acceptance Corporation
Grantor Trust Series 1993-A Class A
4.150% 03/16/1998
(Cost $50,995) - 0.2% 50,947
-----------
GOVERNMENT AND
AGENCY SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATION - (0.9%)
293,615 Federal Home Loan Mortgage PC Guaranteed
Series 1489 Class 1489 C
5.000% 04/15/2002 292,984
-----------
FEDERAL AGENCIES - (15.4%)
1,500,000 Federal Farm Credit Bank Discount Note
5.170% 11/17/1997 1,453,750
Federal Home Loan Bank Consolidated
Discount Notes
1,000,000 5.290% 09/10/1997 980,603
1,000,000 5.310% 11/30/1998 985,310
1,500,000 5.990% 02/09/1998 1,502,400
-----------
4,922,063
FEDERALLY CHARTERED - (13.9%)
Federal National Mortgage Association
Discount Notes
1,500,000 5.510% 09/18/1997 1,469,142
1,500,000 5.560% 10/02/1997 1,466,056
1,500,000 Federal National Mortgage Association
Medium Term Note
6.016% 04/14/2000 (1) 1,500,000
-----------
4,435,198
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
U. S. GOVERNMENT SECURITY - (4.7%)
1,500,000 United States Treasury Note
5.125% 02/28/1998 1,490,520
-----------
TOTAL GOVERNMENT
AND AGENCY SECURITIES
(Cost $11,148,317) - 34.9% 11,140,765
-----------
CORPORATE BONDS
FINANCIAL SERVICES - (9.3%)
1,500,000 General Motors Acceptance Corporation
5.390% 08/04/1997 1,477,477
1,500,000 Travelers Group, Incorporated
5.750% 04/15/1998 1,495,860
-----------
2,973,337
GOVERNMENT - (4.6%)
1,500,000 Province De Quebec
5.720% 10/15/1997 1,460,407
-----------
INDUSTRIALS - (4.6%)
1,500,000 Campbell Soup Company
5.420% 10/08/1997 1,462,067
-----------
LEISURE TIME - (4.7%)
1,500,000 Carnival Corporation
5.750% 03/15/1998 1,494,525
-----------
SERVICES - (4.6%)
1,500,000 Private Export Funding Corporation
5.380% 08/25/1997 1,472,498
-----------
TOTAL CORPORATE BONDS
(Cost $8,862,385) - 27.8% 8,862,834
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
18
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
COMMERCIAL PAPER
ENTERTAINMENT - (4.6%)
1,500,000 Disney, Walt Company
5.350% 07/16/1997 1,482,203
-----------
FINANCIAL SERVICES - (32.6%)
1,500,000 American Express Company
5.270% 05/21/1997 1,495,609
1,500,000 Associates Corporation of North America
5.250% 08/18/1997 1,474,158
1,500,000 duPont E I de Nemours & Company
5.250% 08/06/1997 1,477,003
1,500,000 Ford Motor Credit Company
5.350% 07/22/1997 1,480,798
1,500,000 General Electric Capital Corporation
5.290% 06/03/1997 1,492,726
1,500,000 John Deere Capital Corporation
5.250% 08/19/1997 1,473,921
1,500,000 Prudential Funding Corporation
5.300% 06/17/1997 1,489,621
-----------
10,383,836
TOTAL COMMERCIAL PAPER
(Cost $11,873,609) - 37.2% 11,866,039
-----------
<CAPTION>
Principa l
Amount $ VALUE $
--------- -----------
<C> <S> <C>
OTHER SHORT TERM
INVESTMENT
REPURCHASE AGREEMENT - (2.0%)
645,000 State Street Bank and Trust Company
5.000% 05/01/1997 (2)
(Cost $645,000) - 2.0% 645,000
-----------
TOTAL INVESTMENTS
(Cost $32,580,306) - 102.1% 32,565,585
LIABILITIES IN EXCESS
OF OTHER ASSETS - (2.1)% (672,511)
-----------
NET ASSETS - 100.0% $31,893,074
-----------
-----------
</TABLE>
(1) Variable rate note.
(2) The repurchase agreement, dated 4/30/97, with a repurchase price of
$645,090, is collateralized by a $610,000 United States Treasury Note,
8.75%, 8/15/00.
See notes to financial statements.
- --------------------------------------------------------------------------------
19
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL INVESTMENT
EQUITY CAPITALIZATION GRADE SHORT-TERM
VALUE VALUE INCOME INVESTMENT
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value - Note
2........................................ $53,693,267 $73,763,775 $21,476,950 $32,565,585
Cash....................................... 480 966 394 902
Dividends receivable....................... 40,067 5,173 0 0
Interest receivable........................ 556 192 296,067 76,166
Receivable for securities sold............. 0 1,045,395 0 0
Receivable for trust shares sold........... 603,067 165,490 0 11,601
Deferred organizational costs.............. 20,649 20,649 20,989 18,555
Prepaid expenses........................... 16,416 19,750 12,734 14,537
Due from Schroder Capital Management Inc. -
Note 3................................... 0 0 4,883 0
----------- ----------- ----------- -----------
TOTAL ASSETS........................... 54,374,502 75,021,390 21,812,017 32,687,346
LIABILITIES
Payable for securities purchased........... 1,058,384 1,225,080 204,224 0
Payable for trust shares redeemed.......... 11,601 67,851 0 748,576
Advisory fee payable - Note 3.............. 31,173 57,121 8,869 10,646
Accounts payable and accrued expenses...... 29,923 32,729 34,209 32,563
Dividends payable.......................... 0 0 1,871 2,487
----------- ----------- ----------- -----------
TOTAL LIABILITIES...................... 1,131,081 1,382,781 249,173 794,272
----------- ----------- ----------- -----------
NET ASSETS............................. $53,243,421 $73,638,609 $21,562,844 $31,893,074
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
NET ASSETS
Capital paid-in............................ $40,141,819 $56,281,040 $21,618,702 $32,011,619
Undistributed (distributions in excess of)
net investment income.................... 94,687 (90,377 ) (7,018 ) 1,283
Accumulated net realized gain (loss) on
investments.............................. 2,385,673 3,909,440 (3,486 ) (105,107)
Net unrealized appreciation (depreciation)
of investments........................... 10,621,242 13,538,506 (45,354 ) (14,721)
----------- ----------- ----------- -----------
NET ASSETS............................. $53,243,421 $73,638,609 $21,562,844 $31,893,074
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net asset value, offering and redemption
price per share.......................... $ 13.06 $ 13.77 $ 9.42 $ 9.86
Total shares outstanding at end of
period................................... 4,076,712 5,347,046 2,288,124 3,235,801
Cost of securities......................... $43,072,025 $60,225,269 $21,522,304 $32,580,306
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
20
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL
EQUITY CAPITALIZATION INVESTMENT SHORT-TERM
VALUE VALUE GRADE INCOME INVESTMENT
FUND FUND FUND FUND
---------- -------------- ------------ ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income............................ $ 412,010 $ 278,640 $ 0 $ 0
Interest income............................ 64,227 71,895 756,391 850,147
---------- -------------- ------------ ---------
TOTAL INCOME........................... 476,237 350,535 756,391 850,147
EXPENSES
Investment advisory fees - Note 3.......... 180,555 315,265 55,634 61,621
Administrative fees - Note 3............... 35,688 47,949 18,263 23,912
Custodian fees............................. 21,839 23,192 20,113 17,654
Audit fees................................. 7,537 7,526 7,537 7,537
Legal fees................................. 6,678 6,667 6,678 6,678
Printing expenses.......................... 2,976 2,971 2,976 2,976
Trustees fees - Note 4..................... 4,860 4,852 4,860 4,860
Transfer agent fees........................ 21,025 20,991 21,025 21,025
Organizational expenses.................... 4,784 4,784 4,784 4,784
Registration fees.......................... 4,779 4,635 4,755 4,679
Insurance.................................. 552 704 278 393
Other...................................... 1,198 1,376 698 973
Expenses borne by Schroder Capital
Management Inc. - Note 3................. 0 0 (23,043) 0
---------- -------------- ------------ ---------
TOTAL EXPENSES......................... 292,471 440,912 124,558 157,092
---------- -------------- ------------ ---------
NET INVESTMENT INCOME (LOSS)........... 183,766 (90,377) 631,833 693,055
---------- -------------- ------------ ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments.... 2,431,268 3,916,931 (3,139) (698)
Change in net unrealized appreciation
(depreciation) of investments............ 3,384,209 4,570,872 (387,511) (32,220)
---------- -------------- ------------ ---------
NET GAIN (LOSS)............................ 5,815,477 8,487,803 (390,650) (32,918)
---------- -------------- ------------ ---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $5,999,243 $ 8,397,426 $ 241,183 $660,137
---------- -------------- ------------ ---------
---------- -------------- ------------ ---------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
21
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
APRIL 30, 1997
<TABLE>
<CAPTION>
EQUITY VALUE FUND
---------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/97 10/31/96
------------ ------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income (loss)............. $ 183,766 $ 400,366
Net realized gain (loss) on
investments............................ 2,431,268 2,347,661
Change in net unrealized appreciation
(depreciation) of investments.......... 3,384,209 4,535,784
------------ ------------
Net increase in net assets resulting from
operations............................. 5,999,243 7,283,811
Net equalization debits.................... 0 0
Dividends and distributions to
Shareholders:
From net investment income............... (386,573) (443,762)
In excess of net investment income....... 0 0
From net realized capital gains.......... (2,294,529) (2,980,634)
Net increase (decrease) from trust share
transactions............................. 7,020,021 957,494
------------ ------------
TOTAL INCREASE (DECREASE)............ 10,338,162 4,816,909
Net Assets
Beginning of period...................... 42,905,259 38,088,350
------------ ------------
End of period (a)........................ $ 53,243,421 $ 42,905,259
------------ ------------
------------ ------------
(a) Including undistributed (distributions
in excess of) net investment income...... $ 94,687 $ 297,494
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
22
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
APRIL 30, 1997
<TABLE>
<CAPTION>
SMALL CAPITALIZATION INVESTMENT GRADE SHORT-TERM
VALUE FUND INCOME FUND INVESTMENT FUND
------------------------ ------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/97 10/31/96 4/30/97 10/31/96 4/30/97 10/31/96
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
$ (90,377) $ (169,856) $ 631,833 $ 1,409,904 $ 693,055 $ 1,483,189
3,916,931 5,532,400 (3,139) 246,670 (698) (1,966)
4,570,872 4,106,542 (387,511) (654,055) (32,220) 3,256
----------- ----------- ----------- ----------- ----------- -----------
8,397,426 9,469,086 241,183 1,002,519 660,137 1,484,479
0 0 (7,545) (7,265) 0 0
0 0 (623,238) (1,404,178) (691,719) (1,506,838)
0 0 0 0 0 (30,276)
(5,368,195) (28,662) (246,670) (306,566) 0 0
21,995,194 (8,755,194) (1,508,485) 719,126 1,398,088 (3,356,675)
----------- ----------- ----------- ----------- ----------- -----------
25,024,425 685,230 (2,144,755) 3,636 1,366,506 (3,409,310)
48,614,184 47,928,954 23,707,599 23,703,963 30,526,568 33,935,878
----------- ----------- ----------- ----------- ----------- -----------
$73,638,609 $48,614,184 $21,562,844 $23,707,599 $31,893,074 $30,526,568
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
$ (90,377) $ 0 $ (7,018) $ (8,068) $ 1,283 $ (53)
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
23
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER EQUITY VALUE FUND
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, OCTOBER 31,
1997(1) 1996 1995 1994(2)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 12.18 $ 11.12 $ 9.45 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (3)................ 0.05 0.11 0.11 0.06
Net Realized and Unrealized Gain (Loss)
on Investments......................... 1.59 1.92 1.63 (0.61)
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS......... 1.64 2.03 1.74 (0.55)
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS:
From Net Investment Income............... (0.11) (0.13) (0.07) 0.00
From Net Realized Capital Gains.......... (0.65) (0.84) 0.00 0.00
----------- ----------- ----------- -----------
Total Distributions...................... (0.76) (0.97) (0.07) 0.00
----------- ----------- ----------- -----------
NET ASSET VALUE AT END OF PERIOD............. $ 13.06 $ 12.18 $ 11.12 $ 9.45
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
TOTAL RETURN................................. 13.80%(4) 19.30% 18.63% (5.50)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)...... $53,243 $ 42,905 $ 38,088 $21,309
Ratio of Operating Expenses to Average
Net Assets (3)......................... 1.21%(5) 1.26% 1.40% 1.30%(5)
Ratio of Net Investment Income to Average
Net Assets............................. 0.76%(5) 0.94% 1.27% 1.37%(5)
Portfolio Turnover Rate.................. 29.77%(4) 56.83% 83.15% 102.56%(4)
Average Commission per Share (6)......... $ 0.06 $ 0.06 -- --
</TABLE>
(1) Unaudited.
(2) For the period February 16, 1994 (commencement of investment operations)
through October 31, 1994.
(3) Net Investment Income is after reimbursement of certain expenses by Schroder
Capital Management Inc. (See Note 3 to the Trust's financial statements.)
Had the Investment Adviser not undertaken to pay or reimburse expenses
related to the Fund, the Net Investment Income per share and Ratio of
Operating Expenses to Average Net Assets would have been as follows: 1995 -
$0.11 and 1.45%; 1994 - $0.02 and 2.17%, respectively.
(4) Not annualized.
(5) Annualized.
(6) For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for trades on which
commissions are charged. This rate does not reflect mark-ups, mark-downs or
spreads on shares traded on a principal basis.
See notes to financial statements.
- --------------------------------------------------------------------------------
24
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, OCTOBER 31,
1997(1) 1996 1995 1994(2)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 13.05 $ 10.77 $ 9.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) (3)......... (0.02) (0.05) (0.03) 0.00
Net Realized and Unrealized Gain (Loss)
on Investments......................... 2.00 2.34 1.03 (0.23)
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS......... 1.98 2.29 1.00 (0.23)
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains.......... (1.26) (0.01) 0.00 0.00
----------- ----------- ----------- -----------
Total Distributions...................... (1.26) (0.01) 0.00 0.00
----------- ----------- ----------- -----------
NET ASSET VALUE AT END OF PERIOD............. $ 13.77 $ 13.05 $ 10.77 $ 9.77
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
TOTAL RETURN................................. 15.71%(4) 21.17% 10.27% (2.30)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)...... $73,639 $ 48,614 $ 47,929 $21,193
Ratio of Operating Expenses to Average
Net Assets (3)......................... 1.33%(5) 1.43% 1.56% 1.45%(5)
Ratio of Net Investment Income to Average
Net Assets............................. (0.27)%(5) (0.34)% (0.29)% 0.17%(5)
Portfolio Turnover Rate.................. 26.11%(4) 81.63% 45.74% 18.53%(4)
Average Commission per Share (6)......... $ 0.06 $ 0.06 -- --
</TABLE>
(1) Unaudited.
(2) For the period February 16, 1994 (commencement of investment operations)
through October 31, 1994.
(3) Net Investment Income is after reimbursement of certain expenses by Schroder
Capital Management Inc. (See Note 3 to the Trust's financial statements.)
Had the Investment Adviser not undertaken to pay or reimburse expenses
related to the Fund, the Net Investment Income per share and Ratio of
Operating Expenses to Average Net Assets would have been as follows: 1995 -
($0.03) and 1.62%, 1994 - ($0.04) and 3.15%, respectively.
(4) Not annualized.
(5) Annualized.
(6) For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for trades on which
commissions are charged. This rate does not reflect mark-ups, mark-downs or
spreads on shares traded on a principal basis.
See notes to financial statements.
- --------------------------------------------------------------------------------
25
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, OCTOBER 31,
1997(1) 1996 1995 1994(2)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 9.70 $ 9.93 $ 9.14 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (3)................ 0.27 0.53 0.59 0.34
Net Realized and Unrealized Gain (Loss)
on Investments......................... (0.17) (0.11) 0.79 (0.83)
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS......... 0.10 0.42 1.38 (0.49)
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS:
From Net Investment Income............... (0.27) (0.53) (0.59) (0.34)
From Net Realized Capital Gains.......... (0.11) (0.12) 0.00 0.00
Tax Return of Capital.................... 0.00 0.00 0.00 (0.03)
----------- ----------- ----------- -----------
Total Distributions...................... (0.38) (0.65) (0.59) (0.37)
----------- ----------- ----------- -----------
NET ASSET VALUE AT END OF PERIOD............. $ 9.42 $ 9.70 $ 9.93 $ 9.14
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
TOTAL RETURN................................. 1.02%(4) 4.38% 15.62% (4.90)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)...... $21,563 $ 23,708 $ 23,704 $12,905
Ratio of Operating Expenses to Average
Net Assets (3)......................... 1.12%(5) 1.12% 1.06% 0.87%(5)
Ratio of Net Investment Income to Average
Net Assets............................. 5.61%(5) 5.46% 6.35% 6.39%(5)
Portfolio Turnover Rate.................. 20.66%(4) 68.76% 113.50% 115.63%(4)
</TABLE>
(1) Unaudited.
(2) For the period February 22, 1994 (commencement of investment operations)
through October 31, 1994.
(3) Net Investment Income is after reimbursement of certain expenses by Schroder
Capital Management Inc. (See Note 3 to the Trust's financial statements.)
Had the Investment Adviser not undertaken to pay or reimburse expenses
related to the Fund, the Net Investment Income per share and Ratio of
Operating Expenses to Average Net Assets would have been as follows: 1997 -
$0.26 and 1.33%, 1996 - $0.52 and 1.24%, 1995 - $0.56 and 1.50%, 1994 -
$0.21 and 3.98%, respectively.
(4) Not annualized.
(5) Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
26
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, OCTOBER 31,
1997(1) 1996 1995 1994(2)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 9.87 $ 9.88 $ 9.88 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (3)................ 0.22 0.45 0.49 0.30
Net Realized and Unrealized Gain (Loss)
on Investments......................... (0.01) 0.00 0.00 (0.12)
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS......... 0.21 0.45 0.49 0.18
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS:
From Net Investment Income............... (0.22) (0.45) (0.49) (0.30)
In Excess of Net Investment Income....... 0.00 (0.01) 0.00 0.00
----------- ----------- ----------- -----------
Total Distributions...................... (0.22) (0.46) (0.49) (0.30)
----------- ----------- ----------- -----------
NET ASSET VALUE AT END OF PERIOD............. $ 9.86 $ 9.87 $ 9.88 $ 9.88
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
TOTAL RETURN................................. 2.14%(4) 4.63% 5.02% 1.83%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)...... $31,893 $ 30,527 $ 33,936 $30,771
Ratio of Operating Expenses to Average
Net Assets (3)......................... 1.02%(5) 1.00% 0.95% 0.78%(5)
Ratio of Net Investment Income to Average
Net Assets............................. 4.50%(5) 4.50% 4.91% 4.48%(5)
Portfolio Turnover Rate.................. 72.12%(4) 154.66% 27.86% 71.38%(4)
</TABLE>
(1) Unaudited.
(2) For the period January 11, 1994 (commencement of investment operations)
through October 31, 1994.
(3) Net Investment Income is after reimbursement of certain expenses by Schroder
Capital Management Inc. (See Note 3 to the Trust's financial statements.)
Had the Investment Adviser not undertaken to pay or reimburse expenses
related to the Fund, the Net Investment Income per share and Ratio of
Operating Expenses to Average Net Assets would have been as follows: 1995 -
$0.47 and 1.08%, 1994 - $0.24 and 1.66%, respectively.
(4) Not annualized.
(5) Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
27
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (UNAUDITED)
NOTE 1 -- ORGANIZATION
Schroder Series Trust (the "Trust", formerly WSIS Series Trust) is a diversified
open-end series management investment company registered under the Investment
Company Act of 1940, as amended. The Trust was organized as a business trust
under the laws of The Commonwealth of Massachusetts on May 6, 1993. The Trust
has an unlimited number of authorized shares, which are divided into five
separate investment portfolios -- Schroder Equity Value Fund (formerly Wertheim
Equity Value Fund), Schroder Small Capitalization Value Fund (formerly Wertheim
Small Capitalization Value Fund), Schroder High Yield Income Fund (formerly
Wertheim High Yield Income Fund), Schroder Investment Grade Income Fund
(formerly Wertheim Investment Grade Income Fund) and Schroder Short-Term
Investment Fund (formerly Wertheim Short-Term Investment Fund) (collectively,
the "Funds"). The Funds (except Schroder Short-Term Investment Fund) are
presently authorized to issue two classes of shares -- "Investor Shares" and
"Advisor Shares." No Advisor Shares have been issued to date.
Effective March 1, 1997, the Trust changed its name from WSIS Series Trust to
Schroder Series Trust. Also, the name "Schroder" replaced "Wertheim" in the name
of the Funds.
Schroder High Yield Income Fund will be liquidated on June 16, 1997. The
termination is subject to, and will be effected only after compliance with,
applicable regulatory requirements. Financial statements for Schroder High Yield
Income Fund are contained in a separate report.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Funds which are in conformity with generally accepted accounting principles.
VALUATION OF INVESTMENTS: Equity securities traded on a national securities
exchange or quoted on the NASDAQ National Market System are valued at their
last-reported sale price on the principal exchange or reported by NASDAQ or, if
there is no reported sale, and in the case of over-the-counter securities not
included in the NASDAQ National Market System, at a bid price estimated by a
broker or dealer. Debt securities are valued on the basis of valuations provided
by pricing services that determine valuations for normal institutional size
trading units of debt securities, or through obtaining
- --------------------------------------------------------------------------------
28
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
independent quotes from market makers. Short-term debt instruments with a
remaining maturity of 60 days or less are valued at amortized cost, which
approximates market value. Securities for which current market quotations are
not readily available are valued at fair value as determined in accordance with
procedures approved by the Trustees.
REPURCHASE AGREEMENTS: The Funds enter into repurchase agreements with approved
institutions. The repurchase agreements are collateralized by U.S. Government
securities. The Trust's custodian takes possession of the underlying securities,
the market value of which at the time of purchase at least equals the resale
price, principal amount plus interest, of the repurchase transaction. To the
extent that any repurchase transaction exceeds one business day, the value of
the underlying securities is marked-to-market on a daily basis to ensure the
adequacy of the underlying securities. Schroder Capital Management Inc.
("Schroder"), investment adviser to the Trust, is responsible for determining
that the value of the underlying securities is at all times at least equal to
the resale price. In the event of default by the seller to repurchase the
securities, a Fund could realize a loss on the sale of the underlying securities
to the extent that the proceeds of sale, including accrued interest, is less
than the resale price of the repurchase agreement. If the seller should be
involved in bankruptcy or insolvency proceedings, realization and/or retention
of the underlying securities or proceeds may be subject to legal proceedings.
INVESTMENT TRANSACTIONS: Investment security transactions are recorded as of
trade date. Realized gains and losses on sales of investments are determined on
the basis of identified cost.
INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date.
Interest income is recorded on an accrual basis.
EXPENSES: Expenses are recorded on an accrual basis. Most of the expenses of
the Trust can be directly attributed to a specific Fund. Expenses not directly
attributed to a specific Fund are allocated among the Funds in a manner deemed
equitable.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders from net
investment income are declared and distributed at least annually for Schroder
Equity Value Fund and Schroder Small Capitalization Value Fund; declared and
distributed monthly for Schroder Investment Grade Income Fund; and declared
daily and distributed monthly for Schroder Short-Term Investment Fund.
Distributions from net realized capital gains, if any, are declared and
distributed at least annually. Distributions are recorded on the ex-dividend
date.
DEFERRED ORGANIZATION COSTS: Costs and expenses of the Trust paid by Schroder
and its affiliates in connection with the organization of the Trust and the
initial public offering of its shares have been deferred by the Trust and are
being amortized on a straight-line basis from the date operations commenced over
a period that it is expected a benefit will be realized, not to exceed five
years.
- --------------------------------------------------------------------------------
29
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
Schroder has agreed with respect to each of the Funds that, if any of the
initial shares of a Fund are redeemed during such amortization period by any
holder thereof, the redemption proceeds will be reduced for any unamortized
organization expenses in the same ratio as the number of shares redeemed bears
to the number of initial shares held at the time of redemption.
EQUALIZATION: Schroder Investment Grade Income Fund follows an accounting
practice known as equalization by which a portion of the proceeds from sales and
costs of redemptions of Fund shares equivalent, on a per share basis, to the
amount of undistributed net investment income on the date of the transaction is
credited or charged to undistributed net investment income. As a result,
undistributed net investment income per share is unaffected by sales and
redemptions of the Fund's shares.
FEDERAL INCOME TAXES: It is the intention of the Trust for each Fund to qualify
as a "regulated investment company" by complying with the requirements of
Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying,
the Funds would not be subject to federal income taxes to the extent that, among
other things, they distribute substantially all of their taxable income,
including realized capital gains, for the fiscal year. In addition, by
distributing during each calendar year substantially all of their net investment
income, capital gains and certain other amounts, if any, the Funds would not be
subject to a federal excise tax.
As of October 31, 1996, Schroder Short-Term Investment Fund had a $104,408
realized capital loss carryforward, for Federal income tax purposes, available
to be used to offset future realized capital gains. The carryforward expires on
October 31, 2004.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for market discount,
losses deferred due to wash sales and excise tax regulations.
NOTE 3 -- INVESTMENT ADVISORY FEES AND ADMINISTRATION AGREEMENT
The Trust has entered into an investment advisory agreement with Schroder. Under
the agreement, Schroder provides investment management services, and receives
for its services compensation monthly at the following annual rates based on
average daily net assets of each Fund taken separately: 0.75% for Schroder
Equity Value Fund; 0.95% for Schroder Small Capitalization Value Fund; 0.50% for
Schroder Investment Grade Income Fund; and 0.40% for Schroder Short-Term
Investment Fund.
The Trust has also entered into an Administration Agreement with State Street
Bank and Trust Company ("State Street"). Under the Administration Agreement, the
Trust pays compensation to State Street at the following annual rates based on
the
- --------------------------------------------------------------------------------
30
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
average daily net assets of each Fund taken separately: 0.08% of the first $125
million of each Fund's average daily net assets, 0.06% of the next $125 million
of each Fund's average daily net assets and 0.04% of each Fund's average daily
net assets in excess of $250 million, subject to certain minimum requirements.
Schroder has voluntarily agreed to reduce its compensation and, if necessary, to
pay certain expenses of each of the Funds until October 31, 1997, to the extent
that a Fund's expenses (other than Schroder's compensation, brokerage, interest,
taxes, deferred organizational expenses, and extraordinary expenses) exceed the
following annual rates: 0.80% of average daily net assets of Schroder Equity
Value Fund; 0.75% of average daily net assets of Schroder Small Capitalization
Value Fund; 0.62% of average daily net assets of Schroder Investment Grade
Income Fund; and 0.63% of average daily net assets of Schroder Short-Term
Investment Fund. The Trust pays all expenses not assumed by Schroder, including
Trustees' fees, auditing, legal, custodial, and investor servicing and
shareholder reporting expenses.
NOTE 4 -- TRUSTEES FEES
The Trust pays no compensation to Trustees who are employees of Schroder.
Trustees who are not Schroder employees receive an annual fee of $5,000 and an
additional fee of $1,500 for each Trustees' meeting attended.
NOTE 5 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund, for the period ended April 30, 1997 were as
follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Schroder Equity Value Fund................. 1$6,092,175 $ 0 1$3,641,519 $ 0
Schroder Small Capitalization Value Fund... 33,491,013 0 16,796,595 0
Schroder Investment Grade Income Fund...... 1,703,821 2,701,935 3,032,047 2,608,008
Schroder Short-Term Investment Fund........ 2,985,180 3,990,723 3,073,783 2,104,135
</TABLE>
- --------------------------------------------------------------------------------
31
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
The identified cost for federal income tax purposes of investments owned by each
Fund and their respective gross unrealized appreciation and depreciation at
April 30, 1997 were as follows:
<TABLE>
<CAPTION>
IDENTIFIED GROSS UNREALIZED NET UNREALIZED
COST APPRECIATION (DEPRECIATION) APPRECIATION (DEPRECIATION)
-------------- ------------ -------------- ---------------------------
<S> <C> <C> <C> <C>
Schroder Equity Value
Fund....................... $ 43,072,025 $11,411,746 $ (790,504) $ 10,621,242
Schroder Small
Capitalization Value
Fund....................... 60,225,269 15,046,917 (1,508,411) 13,538,506
Schroder Investment Grade
Income Fund................ 21,522,304 223,867 (269,221) (45,354)
Schroder Short-Term
Investment Fund............ 32,580,306 9,063 (23,784) (14,721)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at April 30, 1997.
NOTE 6 -- SHAREHOLDERS' TRANSACTIONS
Following is a summary of shareholder transactions for each Fund:
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
Shares Dollars Shares Dollars
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
SCHRODER EQUITY VALUE FUND
Shares sold.................................. 654,762 $ 8,403,307 810,872 $ 9,343,159
Shares issued to shareholders in
reinvestment............................... 215,593 2,666,893 314,407 3,383,017
Shares redeemed.............................. (317,040) (4,050,179) (1,027,306) (11,768,682)
--------- ----------- --------- -----------
Net increase................................. 553,315 $ 7,020,021 97,973 $ 957,494
--------- ----------- --------- -----------
--------- ----------- --------- -----------
SCHRODER SMALL CAPITALIZATION VALUE FUND
Shares sold.................................. 1,751,341 $23,828,464 992,874 $12,163,446
Shares issued to shareholders in
reinvestment............................... 405,553 5,333,019 2,425 28,367
Shares redeemed.............................. (533,948) (7,166,289) (1,719,678) (20,947,007)
--------- ----------- --------- -----------
Net increase (decrease)...................... 1,622,946 $21,995,194 (724,379) $(8,755,194)
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
- --------------------------------------------------------------------------------
32
<PAGE>
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
Shares Dollars Shares Dollars
--------- ----------- --------- -----------
SCHRODER INVESTMENT GRADE INCOME FUND
<S> <C> <C> <C> <C>
Shares sold.................................. 114,446 $ 1,096,727 790,360 $ 7,818,847
Shares issued to shareholders in
reinvestment............................... 89,694 857,319 169,595 1,652,197
Shares redeemed.............................. (359,682) (3,470,076) (904,441) (8,759,183)
Income equalization paid..................... 0 7,545 0 7,265
--------- ----------- --------- -----------
Net (decrease) increase...................... (155,542) $(1,508,485) 55,514 $ 719,126
--------- ----------- --------- -----------
--------- ----------- --------- -----------
SCHRODER SHORT-TERM INVESTMENT FUND
Shares sold.................................. 741,361 $ 7,307,594 946,514 $ 9,335,247
Shares issued to shareholders in
reinvestment............................... 69,205 682,354 154,582 1,524,331
Shares redeemed.............................. (668,636) (6,591,860) (1,440,993) (14,216,253)
--------- ----------- --------- -----------
Net increase (decrease)...................... 141,930 $ 1,398,088 (339,897) $(3,356,675)
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
NOTE 7 -- BENEFICIAL INTEREST
The following schedule shows the number of shareholders each owning 5% or more
of a Fund and the total percentage of the Fund held by such shareholders.
<TABLE>
<CAPTION>
5% or Greater Shareholders
Number % of Fund Held
------------- -----------------
<S> <C> <C>
Schroder Equity Value Fund............................................ 2 27.28%
Schroder Small Capitalization Value Fund.............................. 4 33.04%
Schroder Investment Grade Income Fund................................. 2 44.46%
Schroder Short-Term Investment Fund................................... 1 6.52%
</TABLE>
NOTE 8 -- SUBSEQUENT EVENT
The Trust has filed an amendment to its registration statement with the
Securities and Exchange Commission in connection with the organization of a
sixth investment portfolio -- Schroder MidCap Value Fund. As of June 20, 1997
this Fund had no investment operations.
- --------------------------------------------------------------------------------
33
<PAGE>
INVESTMENT MANAGER
Schroder Capital Management Inc.
OFFICERS
Ashbel C. Williams, Jr., President
David Gibson, Vice President
Jane P. Lucas, Vice President
Catherine A. Mazza, Vice President
Mark J. Smith, Vice President
Robert Jackowitz, Treasurer
Alexandra Poe, Clerk
Barbara Gottlieb, Assistant Clerk
TRUSTEES
Madelon DeVoe Tally
David N. Dinkins
David Gibson
John I. Howell
Peter S. Knight
TRANSFER AND SHAREHOLDER SERVICING AGENT
Boston Financial Data Services, Inc.
CUSTODIAN
State Street Bank and Trust Company
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
The information contained in this report is intended for the general
information of the shareholders of the Trust. This report is not authorized
for distribution to prospective investors unless preceded or accompanied by a
current Trust prospectus which contains important information concerning the
Trust.
