<PAGE> 1
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SCHRODER SERIES TRUST
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INVESTMENT MANAGER
Schroder Capital Management Inc. ("SCM") is an indirect wholly owned subsidiary
of Schroders plc. The firm is part of the Schroder Investment Management Group,
which manages in excess of $175 billion for clients globally. The organization
has an expanded capital base as well as a global representation in the financial
markets. At the end of the last calendar quarter, SCM had over $4 billion in
assets under management.
June 15, 1998
Dear Shareholder,
We are pleased to present the semi-annual report for Schroder Series Trust for
the six month period ended April 30, 1998. Once again, U.S. financial markets
rose during the period. Equities performed particularly strongly, as the stock
market set aside anxieties over the impact of economic slowdown in Asia and
significantly slower first quarter profit growth. Within the bond market, U.S.
Treasuries outperformed other asset classes, in part the result of a flight to
quality and concern about the impact of a slower economy on corporate issues.
The first calendar quarter of 1998 saw real GDP growing at a 4.8% annualized
rate and inflation remaining very subdued. However, the composition of growth in
this timeframe indicated that the economic crisis in Asia is beginning to impact
the U.S., and this does not bode well for activity for the remainder of the
year. In particular, inventories have accumulated to an unwanted degree over the
past six months as the trade deficit has widened substantially while domestic
producers have been slow to reduce output. The U.S. is thus facing an inventory
adjustment combined with a trade gap that promises to widen further in the
months ahead. Consequently, we expect real GDP growth to average only about 1.5%
over the final three quarters of 1998. In addition, corporate profit growth is
slowing as margins are pressured by a combination of a weak pricing environment
and accelerating labor costs. Looking forward, profits are likely to be further
affected by slower economic growth.
Inflation remains muted as the effect of a strong dollar and consequent cheaper
imports continue to offset any pressures being generated by a tight domestic
labor market. We do not expect any acceleration in inflation during the
remainder of this year, and the outlook for 1999 will be very dependent on the
direction of the trade weighted U.S. dollar. If the dollar keeps appreciating,
any increase in inflation should be pushed further out, while a stable or weaker
dollar would probably allow for a moderate increase in inflation during 1999.
Against the backdrop described above, any change in monetary policy for the
foreseeable future appears unlikely.
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SCHRODER SERIES TRUST
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The extended "bull market" in the U.S. has seen the valuation of a substantial
number of stocks reach record high levels. This is due in part to a low
inflationary environment and financial and managerial improvements on the part
of many firms. We expect these factors will continue to have a positive
long-term effect. In the short-term, however, the rate of growth seen in recent
years may be difficult for many companies to sustain, increasing the likelihood
they will not be able to meet earnings expectations. We believe that the
investment approach practiced by Schroder Capital Management, disciplined
research with particular attention paid to identifying companies with reasonable
valuations, will prove increasingly important in helping to weather any
downturns in the market.
Sincerely,
/s/ Ashbel C. Williams, Jr.
- ---------------------------
Ashbel C. Williams, Jr.
President
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2
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SCHRODER LARGE CAPITALIZATION EQUITY FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1998)
Q: How did the Schroder Large Capitalization Equity Fund perform relative to the
S&P 500(R) Index, and its peer group of funds, for the six month period ended
April 30, 1998?
A: For the six month period ended April 30, 1998, the Schroder Large
Capitalization Equity Fund rose 20.13%, compared with the S&P 500 Index which
rose 22.49%. The Lipper average of peer group funds returned 17.39% for the
same period.
Q: What factors contributed to performance during the semi-annual period?
A: The Fund's focus on companies with solid long term growth rates added to
performance for the semi-annual period. Surprisingly, attention paid to
valuations actually detracted from performance in many cases. For example, in
the most recent quarter, the top decile of large capitalization stocks as
ranked by price-to-earnings multiples (highest being ranked number one)
outperformed the S&P 500 Index by 6%. Stock selection in the technology
sector substantially added to the Fund's performance as did its weights in
the consumer staples, financial services, and technology sectors. The Fund's
underweight position in the telecommunications sector detracted from
performance; that sector was led by AT&T, which performed well.
Q: What capitalization weighting strategy was employed by the Fund?
A: The Fund's capitalization weighting strategy apportions portfolio position
sizes according to each stock's market capitalization. A very large market
capitalization stock then will have a proportionately larger position size
then a smaller capitalization stock. The Fund's strategy is similar to the
method used to construct the S&P 500 Index, (though the Fund holds only
approximately 50 stocks while the index holds 500). Variance between the
Fund's performance and that of the Index is reduced through the use of
similar portfolio construction strategies.
Q: Are there any particular sectors management expects to emphasize or
de-emphasize in the next six months?
A: The Fund will remain diversified in almost all sectors. Basic materials,
utilities and transports will not be strategic sectors due to their small
representation in the S&P 500 Index and uncertain earnings prospects.
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3
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SCHRODER LARGE CAPITALIZATION EQUITY FUND
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Portfolio Characteristics as of April 30, 1998
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
General Electric Co. 15.4%
Merck & Co. Inc. 8.2%
Lucent Technologies Inc. 5.6%
American International Group
Inc. 5.1%
Cisco Systems Inc. 4.2%
Federal Home Loan Mortgage
Corp. 3.6%
Abbott Laboratories 3.2%
American Express Co. 2.7%
Ameritech Corp. 2.6%
Allstate Corp. 2.3%
-----
Total 52.9%
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Banks 10.2%
Capital Goods 19.2%
Consumer Cyclical 3.4%
Consumer Staples 8.4%
Financial Services 21.6%
Healthcare 12.0%
Technology 18.2%
Telecommunications 4.2%
Cash Equivalents and Other Net
Assets 2.8%
------
Total 100.0%
</TABLE>
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4
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SCHRODER SMALL CAPITALIZATION VALUE FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1998)
Q: How did the Schroder Small Capitalization Value Fund perform relative to the
Russell 2000(R) Index, and its peer group funds, for the six month period
ended April 30, 1998?
A: For the six month period ended April 30, 1998, the Schroder Small
Capitalization Value Fund rose 8.74% for Investor Shares and 8.54% for
Advisor Shares, compared with the Russell 2000 Index which rose 11.88%. The
Lipper average of peer group funds rose 11.08% for the same period.
Q: What factors contributed to performance during the semi-annual period?
A: After significant outperformance by the Fund for the fiscal year ended
October 31, 1997 (Fund +48.46% vs. Russell 2000 +29.33%), the Fund and the
overall market corrected in the first fiscal quarter (November 1997 through
January 1998). The financial crisis in Southeast Asia caused a flight to
quality and liquidity in U.S. markets. In October and early November,
management repositioned the Fund to reduce investments in companies with
meaningful Asian exposure and to reinvest in small companies with
predominantly U.S.-derived earnings. The repositioning has benefited the
Fund's performance since January.
Q: The Fund's interest sensitive sectors were overweighted relative to the
Russell 2000 Index for the semi-annual period ending April 30, 1998. What has
attracted management to these particular sectors and do you see those trends
continuing?
A: Since the onset of the Southeast Asian financial crisis, the Fund has been
slightly overweighted in interest sensitive stocks. The Russell 2000 Index
was heavily weighted at 31.7% in these sectors. The Fund weighting was 34.2%
during the same period. While seemingly large, the category is very diverse
and includes banks, insurance companies, asset gatherers, REITS and all
varieties of utilities. This category, particularly in small cap, is full of
well-run niche businesses selling at below average multiples with above
average growth rates. In a market selling at historic high valuations,
management is still identifying strong companies at valuations which we
believe offer substantially more reward than risk. Finally, the category has
been subject to considerable consolidation. While the very large companies
grab headlines, four of the Fund's interest sensitive holdings have been
acquired since last summer. Management believes that changing regulations in
several of the underlying industries combined with attractive valuation
levels will remain drivers for further consolidations in this sector.
Q: How is the Fund positioned for the next six months?
A: With the portfolio repositioning in the first fiscal quarter, the Fund is
currently more defensively invested than throughout most of 1997. Management
believes that a cautious stance is warranted given historic high market
valuations, continued Asian uncertainty, and slowing corporate earnings.
Management intends to maintain a focused discipline to identify well managed
businesses selling at below average multiples with above average growth
prospects.
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5
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SCHRODER SMALL CAPITALIZATION VALUE FUND
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Portfolio Characteristics as of April 30, 1998
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
WestPoint Stevens Inc. 3.5%
Symantec Corp. 3.4%
Liberty Financial Cos. Inc. 3.4%
Gerber Scientific Inc. 3.4%
Policy Management Systems Corp. 3.3%
Integrated Health Services Inc. 3.2%
Tuboscope Vetco Inc. 3.2%
Protective Life Corp. 3.2%
Allied Capital Corp. 3.1%
Servico Inc. 3.0%
-----
Total 32.7%
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Banks & Finance 10.4%
Consumer Discretionary 8.8%
Consumer Staples 10.7%
Energy 8.8%
Health Care 3.2%
Insurance 14.8%
Materials and Processing 5.9%
Producer Durables 11.3%
Real Estate Investment Trusts 3.7%
Technology 12.1%
Utilities 5.6%
Cash Equivalents and Other Net
Assets 4.7%
------
Total 100.0%
</TABLE>
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6
<PAGE> 7
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SCHRODER MIDCAP VALUE FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1998)
Q: How did the Schroder MidCap Value Fund perform relative to the S&P MidCap
400(R) Index, and its peer group of funds, for the six month period ended
April 30, 1998?
A: For the six month period ended April 30, 1998, the Schroder MidCap Value Fund
rose 15.73%, compared with the S&P MidCap 400 Index which rose 19.17%. The
Lipper average of peer group funds rose 14.40% for the same period.
Q: What factors contributed to performance during the semi-annual period?
A: After outperforming in its first fiscal quarter of operations (the Fund was
up 3.60% and the S&P MidCap 400 was up 1.03%), the Fund and the Index lagged
the large cap market for the six month period ended April 30, 1998.
Continuing concerns regarding the economic crisis in Southeast Asia caused
investors to seek out the blue chip liquid stocks that make up the large cap
indices.
Management repositioned the Fund out of companies and industries with direct
or indirect exposure to the Southeast Asian economies (i.e., energy and
technology) and into companies that had a greater domestic component in their
business mix or were more defensive in nature (i.e., interest rate sensitive
and utilities). These changes to the Fund's composition aided its performance
beginning in early January.
Q: The Asian crisis had a negative impact on the S&P 500 for the fiscal quarter
ended October 31, 1997. Have mid-cap stocks felt any ripple affects from the
turmoil?
A: The turmoil associated with the Asian crisis caused mid-cap stocks to
underperform the S&P 500 not only in the month of October, 1997, but also for
the six months ended April 30, 1998. The S&P 500 rose 22.49% from November 1,
1997 to April 30, 1998 while the S&P MidCap 400 rose 19.17%. Investors'
reaction to the Asian crisis has been a flight to quality and liquidity,
which has resulted in a continuation of the large cap bull market and has
caused the returns in the mid-cap and small cap markets to lag behind that of
the large cap markets.
Q: How is the Fund positioned for the next six months?
A: The Fund enters the second half of the fiscal year more defensively
positioned than at the beginning, in response to what management believes to
be continued uncertainty in the Asian economies, the historic high valuations
of the large cap indices and slowing corporate earnings.
Although liquidity and merger mania may continue to drive the large cap bull
market well into 1998, management believes that by using traditional
valuation measures, mid-cap stocks are still attractively valued. Management
will continue to be true to our discipline and look for opportunities to add
high quality names with above average growth rates to the Fund at attractive
valuations.
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7
<PAGE> 8
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SCHRODER MIDCAP VALUE FUND
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Portfolio Characteristics as of April 30, 1998
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Integrated Health Services Inc. 3.4%
Sola International Inc. 3.4%
Symantec Corp. 3.3%
Office Max Inc. 3.3%
Valspar Corp. 3.3%
Warnaco Group Inc. 3.2%
Comdisco Inc. 3.2%
OM Group Inc. 3.1%
Unisys Corp. 3.1%
Allied Capital Corp. 3.1%
------
Total 32.4%
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Banks and Finance 12.1%
Basic Industry 9.2%
Capital Goods 5.9%
Consumer Cyclical 12.1%
Consumer Staples 12.7%
Energy 5.1%
Insurance 11.5%
Technology 15.1%
Transportation 2.9%
Utilities 8.3%
Cash Equivalents and Other Net
Assets 5.1%
------
Total 100.0%
</TABLE>
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8
<PAGE> 9
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SCHRODER INVESTMENT GRADE INCOME FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1998)
Q: How did the Schroder Investment Grade Income Fund perform for the six month
period ended April 30, 1998?
A: For the six month period ended April 30, 1998, the Schroder Investment Grade
Income Fund rose 2.93%, compared to the Lehman Brothers Government/Corporate
Index, which rose 3.64% over the same period. The Lipper average of peer
group funds rose 3.29% for the same period.
Q: How has the Fund positioned itself over the past six months?
A: Changes to the Fund's sector allocations during the past six months are shown
below:
<TABLE>
<CAPTION>
OCTOBER 31, 1997 APRIL 30, 1998
---------------- --------------
<S> <C> <C>
Corporate Notes................................. 31.2% 21.7%
Mortgage-Backed Securities...................... 20.1% 20.6%
U.S. Government Agencies........................ 6.2% 10.5%
U.S. Treasury Issues............................ 38.4% 42.1%
</TABLE>
The Fund's holdings of corporate securities were reduced. This was due in
part to the financial problems in the Asian economies which initially
caused spread relationships between corporate and treasuries to widen on
fears of a slowing economy and lower overall corporate profitability. The
surging economy, positive rating momentum from mergers & acquisitions, and
good corporate earnings reports caused corporate yield spreads to tighten,
although not back to their recent historic levels. The quantity of new
issue offerings surged, including many first time issuers. These issues
were analyzed and a number were selectively added to the portfolio.
Mortgage-backed securities performed well.
Q: Does management anticipate a rise in interest rates from the Federal Reserve
Board in the near future?
A: Management believes that the Federal Reserve Board will continue to take a
wait-and-see approach to raising interest rates. Recent economic data
continue to depict an economy with strong domestic growth and no inflation.
First quarter GDP growth was 4.8%, GDP-based inflation indices are the lowest
seen in 35 years and the recent problems in the Southeast Asian economies
appear to have minimally impacted the overall U.S. economy. While economic
theory and historical data suggest a strong correlation between excessive
growth rates and inflation, there are signs that the U.S. economy will begin
to slow in the second quarter. If current trends toward trade deterioration
and inventory accumulation continue, management expects slower domestic
output growth and lower corporate profitability.
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9
<PAGE> 10
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SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1998
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
U.S. Treasury Note 11.6%
6.500% 10/15/06
U.S. Treasury Note 6.8%
6.500% 05/31/02
U.S. Treasury Note 6.4%
5.750% 08/15/03
U.S. Treasury Note 4.4%
7.250% 08/15/04
U.S. Treasury Note 3.8%
6.375% 05/15/00
U.S. Treasury Bond 2.9%
6.750% 08/15/26
FNMA Note 2.4%
6.250% 08/12/03
FNMA PC# 303909 2.2%
7.000% 05/01/26
FNMA PC# 250030 2.2%
7.000% 05/01/24
FNMA 1997-1 B 2.2%
6.500% 02/18/04
-----
Total 44.9%
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Corporate Bonds 21.7%
Mortgages 20.6%
U.S. Government Agencies 10.5%
U.S. Treasury Issues 42.1%
Cash Equivalents and Other Net
Assets 5.1%
------
Total 100.0%
</TABLE>
CREDIT QUALITY
<TABLE>
<CAPTION>
% OF MARKET VALUE
RATING OF INVESTMENTS
- -----------------------------------------------
<S> <C>
U.S. Treasury Issues 42.6%
U.S. Government Agencies 35.5%
AAA 0%
AA 6.3%
A 9.6%
Baa 6.0%
------
Total 100.0%
</TABLE>
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10
<PAGE> 11
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SCHRODER SHORT-TERM INVESTMENT FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1998)
Q: How did the Schroder Short-Term Investment Fund perform relative to the 90
day U.S. Treasury Bill for the six month period ended April 30, 1998?
A: For the six month period ended April 30, 1998, the Schroder Short-Term
Investment Fund had a total return of 2.23%, compared to the 90 day U.S.
Treasury Bill, which had a total return of 2.63%. The Lipper average for peer
group funds returned 2.70% for the same period.
Q: How has the Fund responded to changes in yield relationships during the
semi-annual period?
A: The treasury yield curve from 3 months to 2 years has steepened during the
last six months as technical factors have caused a liquidity squeeze in the
U.S. Treasury Bill sector. As yields on U.S. Treasury Bills rallied, the Fund
responded by increasing its allocation to Commercial Paper and Certificates
of Deposit and Bankers Acceptances. In addition, the Fund reduced its
exposure to Corporate Notes as yield spreads narrowed to take advantage of
more attractive opportunities. The sector changes are highlighted below.
<TABLE>
<CAPTION>
OCTOBER 31, 1997 APRIL 30, 1998
---------------- --------------
<S> <C> <C>
Asset & Mortgage-Backed Issues.................. 8% 9%
Commercial Paper................................ 25% 34%
Corporate Notes................................. 27% 19%
U.S. Government Agency Discount Notes........... 2% 0%
U.S. Treasury Notes & Government Agencies....... 16% 7%
Certificates of Deposit & Bankers Acceptances... 22% 28%
</TABLE>
Q: What is management's view of the economic outlook for the next six months?
A: Management's forecast for real GDP growth in the second quarter is 2%, which
would put year-over-year growth at just over 3%. Domestic demand should
gradually slow over the remainder of the year and slowing corporate
profitability should place downward pressure on capital spending and
employment growth. Core inflation remains low and management anticipates that
the Federal Reserve will not firm monetary policy in the next six months.
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11
<PAGE> 12
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SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1998
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Merrill Lynch & Co. Note 5.3%
6.520% 6/22/98
Allstate Corp. Note 5.3%
5.875% 06/15/98
Chrysler Financial Corp. Note 4.6%
6.500% 6/15/98
Associates Corp. of NA Note 3.5%
6.000% 3/15/99
Societe Generale Yankee CD 5.5%
5.910% 9/4/98
Canadian Imperial Bank Yankee
CD 3.5%
5.910% 8/28/98
Banque Nationale de Paris
Yankee CD 3.5%
5.800% 10/5/98
Credit Suisse Yankee CD 3.5%
5.740% 1/7/99
National Westminster Bank PLC
Yankee CD 3.5%
5.540% 8/3/98
Australia & New Zealand Banking
Group Yankee CD 3.5%
5.580% 9/14/98
-----
Total 41.7%
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Asset and Mortgage Backed
Issues 9.3%
Certificates of Deposit and
Bankers Acceptances 28.1%
Commercial Paper 33.9%
Corporate Bonds 18.6%
U.S. Treasury Notes and
Government Agencies 7.0%
Cash Equivalents and Other Net
Assets 3.1%
-----
Total 100%
</TABLE>
CREDIT QUALITY
<TABLE>
<CAPTION>
% OF MARKET VALUE
RATING OF INVESTMENTS
- -----------------------------------------------
<S> <C>
U.S. Government Issues 16%
AAA/A1/P1 84%
----
Total 100%
</TABLE>
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12
<PAGE> 13
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SCHRODER SERIES TRUST
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PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
AVERAGE AVERAGE
ANNUAL RETURN ANNUAL RETURN
ONE YEAR ENDED FROM INCEPTION TO ONE YEAR ENDED FROM INCEPTION TO
MARCH 31, 1998 MARCH 31, 1998* APRIL 30, 1998 APRIL 30, 1998*
-------------- ----------------- -------------- -----------------
<S> <C> <C> <C> <C>
Schroder Large Capitalization
Equity Fund -- Investor..... 39.19% 18.84% 33.19% 18.32%
Schroder Small Capitalization
Value Fund -- Investor...... 43.48% 19.63% 39.43% 19.41%
Schroder Small Capitalization
Value Fund -- Advisor....... 43.13%** 19.59%** 39.03%** 19.15%**
Schroder MidCap Value Fund --
Investor.................... -- 19.90% -- 19.90%
Schroder Investment Grade
Income Fund -- Investor..... 10.78% 5.95% 9.72% 5.92%
Schroder Short-Term Investment
Fund -- Investor............ 5.06% 4.33% 4.83% 4.31%
</TABLE>
*From commencement of operations (February 16, 1994 for Schroder Large
Capitalization Equity Fund and Schroder Small Capitalization Value Fund; August
1, 1997 for Schroder MidCap Value Fund, February 22, 1994 for Schroder
Investment Grade Income Fund and January 11, 1994 for Schroder Short-Term
Investment Fund)
**The total return for Advisor Shares of the Small Capitalization Value Fund
reflects pro forma information (based on Investor Share performance) for periods
through September 25, 1997, and actual total return for periods thereafter (the
inception date of Advisor Shares of the Fund was September 26, 1997). The actual
total return of Advisor Shares of the Fund from September 26, 1997 through March
31, 1998 and April 30, 1998 was 4.21% and 4.86%, respectively.
"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 each Fund in understanding
their investments in the Fund and do not constitute investment advice; investors
should consult their own investment professionals as to their individual
investment programs.
- --------------------------------------------------------------------------------
13
<PAGE> 14
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SCHRODER LARGE CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
BANKS - (10.2%)
14,300 Bank of New York,
Incorporated 844,594
5,400 BankBoston Corporation 582,863
8,700 Fifth Third Bancorp 478,500
10,900 First Chicago NBD
Corporation 1,012,337
10,300 Fleet Financial Group,
Incorporated 889,663
16,700 KeyCorp New 662,781
8,100 National City Corporation 560,925
28,700 Norwest Corporation 1,139,031
8,000 Suntrust Banks,
Incorporated 651,500
-----------
6,822,194
CAPITAL GOODS - (19.2%)
9,600 Deere & Company 561,000
121,200 General Electric Company 10,317,150
20,200 Tyco International
Limited 1,100,900
8,900 United Technologies
Corporation 876,094
-----------
12,855,144
CONSUMER CYCLICAL - (3.4%)
11,200 Carnival Corporation 779,100
30,000 Cendant Corporation (1) 750,000
10,700 Gannett, Incorporated 726,931
-----------
2,256,031
CONSUMER STAPLES - (8.4%)
14,500 Campbell Soup Company 744,031
11,227 Colgate Palmolive Company 1,006,922
6,400 CVS Corporation 472,000
13,900 Heinz H J Company 757,550
9,600 Kroger Company (1) 402,000
10,900 Mattel, Incorporated 417,606
18,000 Safeway, Incorporated (1) 688,500
18,200 Sara Lee Corporation 1,084,038
1,410 Vlasic Foods
International,
Incorporated (1) 32,518
-----------
5,605,165
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
FINANCIAL SERVICES - (21.6%)
10,000 Aegon 1,328,750
16,241 Allstate Corporation 1,563,196
17,700 American Express Company 1,805,400
26,100 American International
Group, Incorporated 3,433,781
3,400 Associates First Capital
Corporation 254,150
8,500 Equitable Companies,
Incorporated 521,688
26,300 Federal Home Loan
Mortgage Corporation 1,218,019
40,300 Federal National Mortgage
Association 2,412,963
3,067 General Reinsurance
Corporation 685,666
4,100 Household International,
Incorporated 538,894
6,400 Marsh & Mclennan Company,
Incorporated 583,200
2,300 Travelers Property
Casualty Corporation 96,600
-----------
14,442,307
HEALTHCARE - (12.0%)
29,000 Abbott Laboratories 2,120,625
45,500 Merck & Company,
Incorporated 5,482,750
11,600 Tenet Healthcare
Corporation (1) 434,275
-----------
8,037,650
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
14
<PAGE> 15
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SCHRODER LARGE CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
TECHNOLOGY - (18.2%)
11,100 Automatic Data
Processing, Incorporated 743,006
38,365 Cisco Systems,
Incorporated (1) 2,810,236
20,700 Computer Associates
International,
Incorporated 1,212,244
48,800 Lucent Technologies,
Incorporated 3,714,900
19,900 Northern Telecom Limited 1,211,412
10,900 Pitney Bowes,
Incorporated 523,200
14,306 Sun Microsystems,
Incorporated (1) 589,228
12,335 Xerox Corporation 1,400,022
-----------
12,204,248
TELECOMMUNICATIONS - (4.2%)
19,200 Airtouch Communications,
Incorporated (1) 1,020,000
41,600 Ameritech Corporation 1,770,600
-----------
2,790,600
-----------
TOTAL COMMON STOCKS
(Cost $55,015,531) - 97.2% 65,013,339
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
SHORT TERM
INVESTMENT - (2.8%)
1,872,190 SSgA U.S. Government Fund
5.190% (2)
(Cost $1,872,190) - 2.8% 1,872,190
-----------
TOTAL INVESTMENTS
(Cost
$56,887,721) - 100.0% 66,885,529
OTHER ASSETS LESS
LIABILITIES - 0.0% 5,427
-----------
NET ASSETS - 100.0% $66,890,956
===========
</TABLE>
(1) Denotes non-income producing security.
(2) Interest rate shown is the 7 day yield as of April 30, 1998.
See notes to financial statements.
- --------------------------------------------------------------------------------
15
<PAGE> 16
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
BANKS &
FINANCE - (10.4%)
131,600 Allied Capital
Corporation 3,421,600
25,400 Bank United Corporation 1,314,450
54,200 Eaton Vance Corporation 2,655,800
21,400 GBC Bancorp 1,364,250
138,120 Sovereign Bancorp,
Incorporated 2,607,015
------------
11,363,115
CONSUMER DISCRETIONARY - (8.8%)
1,800 Friendly Ice Cream
Corporation (1) 45,675
8,400 Kroll-O'Gara Company (1) 172,200
170,000 Servico, Incorporated
(1) 3,315,000
60,000 Valassis Communications,
Incorporated (1) 2,355,000
113,500 WestPoint Stevens,
Incorporated (1) 3,802,250
------------
9,690,125
CONSUMER STAPLES - (10.7%)
80,100 Alpharma, Incorporated 1,822,275
52,000 CACI, Incorporated (1) 1,140,750
101,600 Casey's General Stores,
Incorporated 1,663,700
13,400 Dynamics Research
Corporation 185,925
199,300 Sensormatic Electronics
Corporation 3,114,063
62,700 Sola International,
Incorporated (1) 2,664,750
73,500 Tokheim Corporation (1) 1,166,813
------------
11,758,276
ENERGY - (8.8%)
171,600 Patina Oil & Gas
Corporation 1,201,200
145,400 Plains Resources,
Incorporated (1) 3,053,400
91,700 Snyder Oil Corporation 1,954,356
146,700 Tuboscope Vetco,
Incorporated (1) 3,474,956
------------
9,683,912
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
HEALTH CARE - (3.2%)
91,000 Integrated Health
Services, Incorporated 3,509,187
------------
INSURANCE - (14.8%)
54,060 Delphi Financial Group,
Incorporated 3,081,420
94,300 Horace Mann Educators
Corporation 3,241,562
93,000 Liberty Financial
Companies, Incorporated 3,725,812
93,400 Protective Life
Corporation 3,467,475
47,200 Vesta Insurance Group,
Incorporated 2,672,700
------------
16,188,969
MATERIALS AND PROCESSING - (5.9%)
60,500 Minerals Technologies,
Incorporated 3,293,469
70,900 OM Group, Incorporated 3,141,756
------------
6,435,225
PRODUCER DURABLES - (11.3%)
146,000 Gerber Scientific,
Incorporated 3,723,000
58,600 Kollmorgen Corporation 1,230,600
76,700 Roper Industries,
Incorporated 2,377,700
56,000 Stone & Webster,
Incorporated 2,499,000
114,000 Valmont Industries,
Incorporated 2,536,500
------------
12,366,800
TECHNOLOGY - (12.1%)
200,000 Data General Corporation
(1) 3,050,000
45,500 Policy Management
Systems Corporation (1) 3,668,438
320,500 Sybase, Incorporated (1) 2,734,266
129,500 Symantec Corporation (1) 3,755,500
------------
13,208,204
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
16
<PAGE> 17
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
UTILITIES - (5.6%)
32,500 Aquarion Company 1,054,219
45,500 Idaho Power Company 1,620,937
38,100 Nevada Power Company 935,831
76,300 Philadelphia Suburban
Corporation 1,611,838
34,500 Southern Union Company 905,625
------------
6,128,450
------------
TOTAL COMMON STOCKS
(Cost $75,487,679) - 91.6% 100,332,263
------------
REAL ESTATE INVESTMENT
TRUSTS - (3.7%)
31,900 JDN Realty Corporation 1,014,819
46,300 MGI Properties,
Incorporated 1,122,775
126,000 Sunstone Hotel
Investors, Incorporated 1,953,000
------------
4,090,594
TOTAL REAL ESTATE INVESTMENT
TRUSTS
(Cost $4,263,446) - 3.7% 4,090,594
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
SHORT TERM INVESTMENTS - (6.1%)
1,731,211 SSgA Money Market Fund
5.223% (2) 1,731,211
4,902,708 SSgA U.S. Government
Fund 5.190% (2) 4,902,708
------------
TOTAL SHORT TERM
INVESTMENTS
(Cost $6,633,919) - 6.1% 6,633,919
------------
TOTAL INVESTMENTS (Cost
$86,385,044) - 101.4% 111,056,776
LIABILITIES IN EXCESS OF
OTHER ASSETS - (1.4)% (1,479,646)
------------
NET ASSETS - 100.0% $109,577,130
============
</TABLE>
(1) Denotes non-income producing security.
(2) Interest rate shown is the 7 day yield as of April 30, 1998.
See notes to financial statements.
- --------------------------------------------------------------------------------
17
<PAGE> 18
- --------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
BANKS & FINANCE - (12.1%)
15,700 Allied Capital
Corporation 408,200
7,100 Colonial BancGroup,
Incorporated 254,713
5,400 Peoples Heritage
Financial Group,
Incorporated 260,550
14,400 Sovereign Bancorp,
Incorporated 271,800
16,000 Waddell & Reed Financial,
Incorporated 396,000
-----------
1,591,263
BASIC INDUSTRY - (9.2%)
6,700 Cytec Industries,
Incorporated (1) 366,825
9,300 OM Group, Incorporated 412,106
10,700 Valspar Corporation 426,663
-----------
1,205,594
CAPITAL GOODS - (5.9%)
12,500 American Power Conversion
Corporation (1) 402,344
12,200 Roper Industries,
Incorporated 378,200
-----------
780,544
CONSUMER CYCLICAL - (12.1%)
9,400 Meredith Corporation 404,200
18,000 Prime Hospitality
Corporation (1) 372,375
10,100 Valassis Communications,
Incorporated (1) 396,425
9,900 Warnaco Group,
Incorporated 418,275
-----------
1,591,275
CONSUMER STAPLES - (12.7%)
11,700 Integrated Health
Services, Incorporated 451,181
23,100 Office Max, Incorporated
(1) 434,569
10,500 Sola International,
Incorporated (1) 446,250
13,200 Sunbeam Corporation 331,650
-----------
1,663,650
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
ENERGY - (5.1%)
14,800 Pioneer Natural Resources
Company 354,275
6,400 Weatherford Enterra,
Incorporated (1) 320,400
-----------
674,675
INSURANCE - (11.5%)
9,000 Liberty Financial
Companies, Incorporated 360,562
8,600 Nationwide Financial
Services, Incorporated 373,025
10,400 Protective Life
Corporation 386,100
9,900 Provident Company,
Incorporated 386,719
-----------
1,506,406
TECHNOLOGY - (15.1%)
9,400 Comdisco, Incorporated 415,950
20,600 Data General Corporation
(1) 314,150
5,000 Policy Management Systems
Corporation (1) 403,125
15,000 Symantec Corporation (1) 435,000
18,200 Unisys Corporation (1) 408,362
-----------
1,976,587
TRANSPORTATION - (2.9%)
9,700 CNF Transportation,
Incorporated 374,663
-----------
UTILITIES - (8.3%)
12,000 American Water Works,
Incorporated 359,250
9,000 Ipalco Enterprises 392,062
7,000 New Century Energies,
Incorporated 332,500
-----------
1,083,812
-----------
TOTAL COMMON STOCKS
(Cost $10,794,024) - 94.9% 12,448,469
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
18
<PAGE> 19
- --------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
- --------- -----------
<S> <C> <C>
SHORT TERM
INVESTMENTS - (5.3%)
116,062 SSgA Money Market Fund
5.223% (2) 116,062
582,098 SSgA U.S. Government Fund
5.190% (2) 582,098
-----------
TOTAL SHORT TERM
INVESTMENTS
(Cost $698,160) - 5.3% 698,160
-----------
TOTAL INVESTMENTS
(Cost
$11,492,184) - 100.2% 13,146,629
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.2)% (25,807)
-----------
NET ASSETS - 100.0% $13,120,822
===========
</TABLE>
(1) Denotes non-income producing security.
(2) Interest rate shown is the 7 day yield as of April 30, 1998.
See notes to financial statements.
- --------------------------------------------------------------------------------
19
<PAGE> 20
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
GOVERNMENT AND AGENCY
SECURITIES
FEDERALLY CHARTERED - (10.5%)
Federal Home Loan Banks
375,000 5.625% 03/19/2001 373,155
400,000 5.700% 01/22/2008 390,924
Federal National
Mortgage Association
400,000 6.240% 01/29/2008 397,360
650,000 6.250% 08/12/2003 643,890
500,000 6.320% 12/23/2003 495,285
500,000 6.400% 09/27/2005 512,980
-----------
2,813,594
U. S. GOVERNMENT
SECURITIES - (42.1%)
United States Treasury
Bonds
495,000 6.250% 08/15/2023 508,979
700,000 6.750% 08/15/2026 768,943
500,000 7.125% 02/15/2023 569,205
United States Treasury
Notes
1,695,000 5.750% 08/15/2003 1,701,712
360,000 6.250% 06/30/2002 367,610
1,000,000 6.375% 05/15/2000 1,015,090
1,750,000 6.500% 05/31/2002 1,802,168
2,950,000 6.500% 10/15/2006 3,092,367
200,000 7.000% 07/15/2006 215,876
1,075,000 7.250% 08/15/2004 1,161,312
-----------
11,203,262
-----------
TOTAL GOVERNMENT AND
AGENCY SECURITIES
(Cost $13,605,642)
- 52.6% 14,016,856
-----------
MORTGAGE BACKED
SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATIONS - (9.5%)
Federal Home Loan
Mortgage Corporation
250,000 Series 1698 Class 1698
G 6.000% 05/15/2008 249,107
400,000 Series G024 Class G024
VB 6.500% 07/25/2010 401,875
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS - (CONTINUED)
500,000 Series 1543 Class 1543
PJ 7.000% 10/15/2022 510,320
Federal National
Mortgage Association
575,000 Tranche 1997 1 Class B
6.500% 02/18/2004 583,728
250,000 Tranche 1997 1 Class B
6.500% 12/18/2011 249,753
500,000 Series 1997 25 Class VB
7.000% 09/18/2012 522,900
-----------
2,517,683
MORTGAGE PASS-THROUGH
SECURITIES - (11.1%)
421,249 Federal Home Loan
Mortgage Corporation
Pool # G00432 8.000%
01/01/2026 436,650
Federal National
Mortgage Association
487,421 Pool # 303945 7.000%
12/01/2010 496,560
585,677 Pool # 250030 7.000%
05/01/2024 592,448
586,569 Pool # 303909 7.000%
05/01/2026 593,350
Government National
Mortgage Association
505,477 Pool # 780350 6.500%
05/15/2009 511,952
319,918 Pool # 423825 8.000%
6/15/2026 332,215
-----------
2,963,175
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost
$5,284,621) - 20.6% 5,480,858
-----------
CORPORATE BONDS
COMMUNICATION SERVICES - (1.7%)
410,000 WorldCom, Incorporated
7.750% 04/01/2007 442,763
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
20
<PAGE> 21
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
CORPORATE BONDS
FINANCE & BANKING - (12.3%)
200,000 Associates Corporation
of North America 5.960%
05/15/2037 201,238
400,000 Case Credit Corporation
6.750% 10/21/2007 407,252
500,000 Dean Witter Discover &
Company 6.875%
03/01/2003 512,985
General Motors
Acceptance Corporation
300,000 6.750% 07/18/2003 306,003
250,000 6.750% 10/06/2003 255,195
500,000 Mellon Financial Company
6.375% 02/15/2010 493,875
400,000 Merrill Lynch & Company,
Incorporated 6.640%
09/19/2002 406,000
100,000 NCNB Corporation 10.200%
07/15/2015 134,268
550,000 Sears Roebuck Acceptance
Corporation 6.950%
05/15/2002 563,508
-----------
3,280,324
INDUSTRIALS - (1.2%)
320,000 Nabisco, Incorporated
7.050% 07/15/2007 328,877
-----------
INSURANCE - (1.1%)
280,000 Old Republic
International
Corporation 7.000%
06/15/2007 290,847
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
LEISURE TIME - (3.1%)
495,000 Royal Caribbean Cruises,
Limited 8.250%
04/01/2005 535,115
250,000 Time Warner,
Incorporated 8.180%
08/15/2007 275,945
-----------
811,060
OIL - (2.3%)
243,800 Chevron Corporation
8.110% 12/01/2004 259,620
350,000 Enterprise Oil 6.700%
09/15/2007 353,105
-----------
612,725
-----------
TOTAL CORPORATE BONDS
(Cost $5,574,458) - 21.7% 5,766,596
-----------
<CAPTION>
Shares
- ---------
<C> <S> <C>
SHORT TERM INVESTMENT - (4.1%)
1,093,417 SSgA U.S. Government
Fund 5.190% (1) (Cost
$1,093,417) - 4.1% 1,093,417
-----------
TOTAL INVESTMENTS
(Cost
$25,558,138) - 99.0% 26,357,727
OTHER ASSETS LESS
LIABILITIES - 1.0% 270,700
-----------
NET ASSETS - 100.0% $26,628,427
===========
</TABLE>
(1) Interest rate shown is the 7 day yield as of April 30, 1998.
See notes to financial statements.
- --------------------------------------------------------------------------------
21
<PAGE> 22
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
ASSET BACKED SECURITY
MISCELLANEOUS - (2.8%)
783,620 California Infrastructure
Series 1997-1 Class A1
5.980% 12/26/2000
(Cost $783,561) - 2.8% 784,090
-----------
GOVERNMENT AND
AGENCY SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATIONS - (6.5%)
939,850 Federal Home Loan
Mortgage
Corporation, REMIC
Series 2020 Class A
6.250% 02/15/2008 942,200
Federal Home Loan
Mortgage
PC Guaranteed
778,892 Series 1386 Class B
6.000% 12/15/2005 777,817
127,518 Series 1479 Class D
6.000% 02/15/2013 127,242
-----------
1,847,259
FEDERAL AGENCIES - (3.5%)
1,000,000 Federal Home Loan Bank
5.310% 11/30/1998 998,820
-----------
U.S. GOVERNMENT SECURITIES - (3.5%)
1,000,000 United States Treasury
Notes
5.500% 02/29/2000 998,540
-----------
TOTAL GOVERNMENT
AND AGENCY SECURITIES
(Cost $3,841,172) - 13.5% 3,844,619
-----------
CORPORATE BONDS
FINANCIAL SERVICES - (18.6%)
1,500,000 Allstate Corporation
5.875% 06/15/1998 1,499,783
1,000,000 Associates Corporation of
North America
6.000% 03/15/1999 1,000,070
1,300,000 Chrysler Financial
Corporation
6.500% 06/15/1998 1,300,780
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
FINANCIAL SERVICES - (continued)
1,500,000 Merrill Lynch & Company,
Incorporated
6.520% 06/22/1998 1,501,012
-----------
TOTAL CORPORATE BONDS
(Cost $5,303,618) -18.6% 5,301,645
-----------
COMMERCIAL PAPER
FINANCIAL
SERVICES - (33.9%)
1,000,000 Dean Witter Discover &
Company
5.350% 07/28/1998 986,531
1,000,000 Ford Motor Credit Company
5.400% 10/08/1998 975,511
1,000,000 General Electric Capital
Corporation
5.340% 07/15/1998 988,521
1,000,000 General Motors Acceptance
Corporation
5.400% 07/29/1998 986,378
1,000,000 IBM Credit Corporation
5.400% 10/09/1998 975,358
1,000,000 John Deere Capital
Corporation
5.360% 08/10/1998 984,541
1,000,000 Nationsbank Corporation
5.350% 07/07/1998 989,745
1,000,000 Province de Quebec
5.420% 10/16/1998 974,287
1,000,000 Prudential Funding
Corporation
5.370% 08/28/1998 981,786
800,000 Sears Roebuck Acceptance
Corporation
5.360% 07/02/1998 792,408
-----------
TOTAL COMMERCIAL PAPER
(Cost $9,638,874) - 33.9% 9,635,066
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
22
<PAGE> 23
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
BANKERS ACCEPTANCE - (7.0%)
1,000,000 Bayerische Vereinsbank AG
5.700% 10/06/1998 999,156
1,000,000 Chase Manhattan
Corporation
5.450% 06/29/1998 991,003
-----------
TOTAL BANKERS ACCEPTANCE
(Cost $1,991,272) - 7.0% 1,990,159
-----------
CERTIFICATES OF
DEPOSIT - (21.1%)
1,000,000 Australia & New Zealand
Banking
5.580% 09/14/1998 999,359
1,000,000 Banque National de Paris
5.800% 10/05/1998 999,561
1,000,000 Canadian Imperial Bank of
Commerce
5.910% 08/28/1998 999,901
1,000,000 Credit Suisse Yankee
5.740% 01/07/1999 999,505
1,000,000 National Westminster Bank
PLC
5.540% 08/03/1998 999,355
1,000,000 Societe Generale
5.910% 09/04/1998 999,917
-----------
TOTAL CERTIFICATES OF
DEPOSIT
(Cost $6,000,732) -21.1% 5,997,598
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
SHORT TERM
INVESTMENT - (2.1%)
597,601 SSgA U.S. Government Fund
5.190% (1)
(Cost $597,601) - 2.1% 597,601
-----------
TOTAL INVESTMENTS
(Cost
$28,156,830) - 99.0% 28,150,778
OTHER ASSETS LESS
LIABILITIES - 1.0% 283,651
-----------
NET ASSETS - 100.0% $28,434,429
===========
</TABLE>
(1) Interest rate shown is the 7 day yield as of April 30, 1998.
See notes to financial statements.
- --------------------------------------------------------------------------------
23
<PAGE> 24
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE SMALL
CAPITALIZATION CAPITALIZATION MIDCAP INVESTMENT SHORT-TERM
EQUITY VALUE VALUE GRADE INCOME INVESTMENT
FUND FUND FUND FUND FUND
-------------- -------------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in
securities, at value -
Note 2................ $66,885,529 $111,056,776 $13,146,629 $26,357,727 $28,150,778
Dividends receivable..... 58,343 88,228 10,135 0 0
Interest receivable...... 891 7,687 723 307,474 376,986
Receivable for securities
sold.................. 0 59,254 0 0 0
Receivable for trust
shares sold........... 15,622 50,606 26,181 4,840 9,527
Deferred organizational
costs................. 10,593 10,593 18,707 11,146 8,907
Prepaid expenses......... 13,550 20,755 7,365 10,810 8,473
Due from Schroder Capital
Management Inc. - Note
3..................... 0 1,647 9,864 0 1,197
----------- ------------ ----------- ----------- -----------
TOTAL ASSETS........ 66,984,528 111,295,546 13,219,604 26,691,997 28,555,868
LIABILITIES
Payable for securities
purchased............. 0 1,451,808 0 0 0
Payable for trust shares
redeemed.............. 0 118,747 0 0 59,140
Advisory fee payable -
Note 3................ 26,951 84,571 9,272 0 9,217
Shareholder servicing fee
payable - Note 4...... 0 33 0 0 0
Accounts payable and
accrued expenses...... 66,621 63,257 89,510 61,720 53,082
Dividends payable........ 0 0 0 1,850 0
----------- ------------ ----------- ----------- -----------
TOTAL LIABILITIES... 93,572 1,718,416 98,782 63,570 121,439
----------- ------------ ----------- ----------- -----------
NET ASSETS.......... $66,890,956 $109,577,130 $13,120,822 $26,628,427 $28,434,429
=========== ============ =========== =========== ===========
NET ASSETS
Capital paid-in.......... $47,169,681 $ 78,319,627 $11,458,623 $25,735,838 $28,553,006
Undistributed
(distributions in
excess of) net
investment income..... 7,128 (27,768) 5,295 (5,131) (4,798)
Accumulated net realized
gain (loss) on
investments........... 9,716,339 6,613,539 2,459 98,131 (107,727)
Net unrealized
appreciation
(depreciation) of
investments........... 9,997,808 24,671,732 1,654,445 799,589 (6,052)
----------- ------------ ----------- ----------- -----------
NET ASSETS.......... $66,890,956 $109,577,130 $13,120,822 $26,628,427 $28,434,429
=========== ============ =========== =========== ===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
24
<PAGE> 25
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (continued)
April 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE SMALL
CAPITALIZATION CAPITALIZATION MIDCAP INVESTMENT SHORT-TERM
EQUITY VALUE VALUE GRADE INCOME INVESTMENT
FUND FUND FUND FUND FUND
-------------- -------------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Investor Class:
Net Assets............... $66,890,956 $109,566,164 $13,120,822 $26,628,427 $28,434,429
Net asset value, offering
and redemption price
per share............. $ 14.30 $ 16.19 $ 11.99 $ 9.79 $ 9.85
Total shares outstanding at
end of period............ 4,679,164 6,767,128 1,093,982 2,719,671 2,885,293
Advisor Class:
Net Assets............... -- $ 10,966 -- -- --
Net asset value, offering
and redemption price
per share............. -- $ 16.15 -- -- --
Total shares outstanding at
end of period............ -- 679 -- -- --
Cost of securities......... $56,887,721 $ 86,385,044 $11,492,184 $25,558,138 $28,156,830
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
25
<PAGE> 26
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE SMALL
CAPITALIZATION CAPITALIZATION MIDCAP INVESTMENT SHORT-TERM
EQUITY VALUE VALUE GRADE INCOME INVESTMENT
FUND FUND FUND FUND FUND
-------------- -------------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income............ $ 310,483 $ 475,806 $ 66,676 $ 0 $ 0
Interest income............ 40,024 119,359 15,833 866,067 804,663
---------- ---------- ---------- -------- --------
TOTAL INCOME.......... 350,507 595,165 82,509 866,067 804,663
EXPENSES
Investment advisory fees
- Note 3............... 192,318 458,584 51,423 67,081 55,040
Shareholder servicing
fee - Note 4............ 0 33 0 0 0
Administrative fees - Note
3....................... 34,339 62,112 17,149 19,607 19,894
Custodian fees............. 20,498 24,778 21,781 19,311 16,125
Audit fees................. 7,678 7,672 7,687 7,687 7,687
Legal fees................. 8,601 8,598 6,377 8,642 8,641
Printing expenses.......... 3,594 3,575 5,013 3,571 3,571
Trustees fees - Note 5..... 4,432 4,432 3,838 4,449 4,449
Transfer agent fees........ 34,761 36,503 17,813 25,944 26,357
Organizational expenses.... 5,193 5,193 9,141 4,980 4,785
Registration fees.......... 8,233 7,726 3,470 7,805 7,623
Insurance.................. 3,625 5,596 146 1,799 2,431
Other...................... 1,332 1,435 1,645 1,012 1,063
Expenses borne by Schroder
Capital Management
Inc. - Note 3........... 0 (3,327) (68,269) (19,660) (16,129)
Expenses waived by Schroder
Capital Management
Inc. - Note 3........... (13,602) 0 0 (11,009) 0
---------- ---------- ---------- -------- --------
TOTAL EXPENSES........ 311,002 622,910 77,214 141,219 141,537
---------- ---------- ---------- -------- --------
NET INVESTMENT INCOME
(LOSS)............. 39,505 (27,745) 5,295 724,848 663,126
---------- ---------- ---------- -------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain on
investments............. 9,761,181 6,643,787 146,834 143,607 1,234
Change in net unrealized
appreciation
(depreciation) of
investments............. (764,876) 1,963,170 1,596,098 (77,624) (32,012)
---------- ---------- ---------- -------- --------
NET GAIN (LOSS)............ 8,996,305 8,606,957 1,742,932 65,983 (30,778)
---------- ---------- ---------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................. $9,035,810 $8,579,212 $1,748,227 $790,831 $632,348
========== ========== ========== ======== ========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
26
<PAGE> 27
(This page has been left blank intentionally)
- --------------------------------------------------------------------------------
27
<PAGE> 28
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
APRIL 30, 1998
<TABLE>
<CAPTION>
LARGE CAPITALIZATION SMALL CAPITALIZATION
EQUITY FUND VALUE FUND
------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/98 10/31/97 4/30/98 10/31/97
----------- ----------- ------------ -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income (loss)... $ 39,505 $ 323,538 $ (27,745) $ (278,667)
Net realized gain (loss) on
investments.................. 9,761,181 8,236,625 6,643,787 15,073,103
Change in net unrealized
appreciation (depreciation)
of investments............... (764,876) 3,525,651 1,963,170 13,740,928
----------- ----------- ------------ -----------
Net increase (decrease) in net
assets resulting from
operations..................... 9,035,810 12,085,814 8,579,212 28,535,364
Net equalization credits.......... 0 0 0 0
Dividends and distributions to
Investor Shareholders:
From net investment income..... (267,881) (386,573) 0 0
From net realized capital
gains........................ (8,235,872) (2,294,529) (14,815,244) (5,368,195)
Dividends and distributions to
Advisor Shareholders:
From net investment income..... -- -- 0 0
From net realized capital
gains........................ -- -- (3,017) 0
Net increase (decrease) from
Investor share
transactions................. 20,806,659 (6,757,731) 19,093,180 24,925,518
Net increase (decrease) from
Advisor share transactions... -- -- (42,219) 58,347
----------- ----------- ------------ -----------
TOTAL INCREASE (DECREASE)...... 21,338,716 2,646,981 12,811,912 48,151,034
Net Assets
Beginning of period............ 45,552,240 42,905,259 96,765,218 48,614,184
----------- ----------- ------------ -----------
End of period.................. $66,890,956 $45,552,240 $109,577,130 $96,765,218
=========== =========== ============ ===========
Including undistributed
(distributions in excess of) net
investment income................. $ 7,128 $ 235,504 $ (27,768) $ (23)
</TABLE>
(1) For the period August 1, 1997 (commencement of investment operations)
through October 31, 1997
See notes to financial statements.
- --------------------------------------------------------------------------------
28
<PAGE> 29
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
APRIL 30, 1998
<TABLE>
<CAPTION>
MIDCAP VALUE INVESTMENT GRADE SHORT-TERM
FUND INCOME FUND INVESTMENT FUND
-------------------------- ------------------------- -------------------------
SIX MONTHS PERIOD SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/98 10/31/97 (1) 4/30/98 10/31/97 4/30/98 10/31/97
----------- ------------ ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
$ 5,295 $ (8,680) $ 724,848 $ 1,336,280 $ 663,126 $ 1,442,775
146,834 (144,375) 143,607 (45,129) 1,234 (4,609)
1,596,098 58,347 (77,624) 535,056 (32,012) 8,461
----------- ----------- ----------- ----------- ----------- -----------
1,748,227 (94,708) 790,831 1,826,207 632,348 1,446,627
0 0 428 2,056 0 0
0 0 (726,102) (1,335,618) (668,901) (1,442,734)
0 0 0 (246,670) 0 0
-- -- -- -- -- --
-- -- -- -- -- --
1,307,079 10,160,224 (119,666) 2,729,362 1,124,676 (3,184,155)
-- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
3,055,306 10,065,516 (54,509) 2,975,337 1,088,123 (3,180,262)
10,065,516 0 26,682,936 23,707,599 27,346,306 30,526,568
----------- ----------- ----------- ----------- ----------- -----------
$13,120,822 $10,065,516 $26,628,427 $26,682,936 $28,434,429 $27,346,306
=========== =========== =========== =========== =========== ===========
$ 5,295 $ 0 $ (5,131) $ (4,305) $ (4,798) $ 977
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
29
<PAGE> 30
- --------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, --------------------------- OCTOBER 31,
1998 (1) 1997 1996 1995 1994 (2)
---------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF
PERIOD............................. $ 14.48 $ 12.18 $ 11.12 $ 9.45 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income.............. 0.01 0.10 0.11 0.11 0.06(3)
Net Realized and Unrealized Gain
(Loss) on Investments........... 2.54 3.04 1.92 1.63 (0.61)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS... 2.55 3.14 2.03 1.74 (0.55)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Investment Income......... (0.09) (0.11) (0.13) (0.07) 0.00
From Net Realized Capital Gains.... (2.64) (0.73) (0.84) 0.00 0.00
------- ------- ------- ------- -------
Total Distributions................ (2.73) (0.84) (0.97) (0.07) 0.00
------- ------- ------- ------- -------
NET ASSET VALUE AT END OF PERIOD..... $ 14.30 $ 14.48 $ 12.18 $ 11.12 $ 9.45
======= ======= ======= ======= =======
TOTAL RETURN......................... 20.13%(4) 26.18% 19.30% 18.63% (5.50)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period
(000's)......................... $66,891 $45,552 $42,905 $38,088 $21,309
Ratio of Operating Expenses to
Average Net Assets.............. 1.21%(3)(5) 1.23% 1.26% 1.40%(3) 1.30%(3)(5)
Ratio of Net Investment Income to
Average Net Assets.............. 0.15%(5) 0.63% 0.94% 1.27% 1.37%(5)
Portfolio Turnover Rate............ 85.12%(4) 64.91% 56.83% 83.15% 102.56%(4)
Average Commission per Share (6)... $ 0.04 $ 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 and/or a
management fee waiver by Schroder Capital Management Inc. (See Note 3 to the
Trust's financial statements.) Had the Investment Adviser not undertaken to
pay, reimburse or waive 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: 1998 - $0.01 and 1.26%, 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, the Fund is
required to disclose its average commission rate per share for trades 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.
- --------------------------------------------------------------------------------
30
<PAGE> 31
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND - INVESTOR SHARES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, --------------------------- OCTOBER 31,
1998 (1) 1997 1996 1995 1994 (2)
---------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF
PERIOD.............................. $ 17.67 $ 13.05 $ 10.77 $ 9.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)........ (0.00) (0.05) (0.05) (0.03) 0.00(3)
Net Realized and Unrealized Gain
(Loss) on Investments............ 0.79 5.65 2.34 1.03 (0.23)
-------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.... 0.79 5.60 2.29 1.00 (0.23)
-------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains..... (2.27) (0.98) (0.01) 0.00 0.00
-------- ------- ------- ------- -------
Total Distributions................. (2.27) (0.98) (0.01) 0.00 0.00
-------- ------- ------- ------- -------
NET ASSET VALUE AT END OF PERIOD...... $ 16.19 $ 17.67 $ 13.05 $ 10.77 $ 9.77
======== ======= ======= ======= =======
TOTAL RETURN.......................... 8.74%(4) 48.46% 21.17% 10.27% (2.30)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period
(000's).......................... $109,566 $96,709 $48,614 $47,929 $21,193
Ratio of Operating Expenses to
Average Net Assets............... 1.29%(5) 1.32% 1.43% 1.56%(3) 1.45%(3)(5)
Ratio of Net Investment Income to
Average Net Assets............... (0.06)%(5) (0.36)% (0.34)% (0.29)% 0.17%(5)
Portfolio Turnover Rate............. 34.69%(4) 77.48% 81.63% 45.74% 18.53%(4)
Average Commission per Share (6).... $ 0.06 $ 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 the fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate per share for trades 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.
- --------------------------------------------------------------------------------
31
<PAGE> 32
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND - ADVISOR SHARES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN ADVISOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31,
1998 (1) 1997 (2)
---------- -----------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD...................... $17.67 $18.29
INCOME FROM INVESTMENT OPERATIONS:
Net Investment (Loss)..................................... (0.08)(3) (0.01)
Net Realized and Unrealized Gain (Loss) on Investments.... 0.83 (0.61)
------ ------
TOTAL FROM INVESTMENT OPERATIONS.......................... 0.75 (0.62)
------ ------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains........................... (2.27) 0.00
------ ------
Total Distributions....................................... (2.27) 0.00
------ ------
NET ASSET VALUE AT END OF PERIOD............................ $16.15 $17.67
====== ======
TOTAL RETURN................................................ 8.53%(4) (3.39)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)....................... $ 11 $ 56
Ratio of Operating Expenses to Average Net Assets......... 1.54%(3)(5) 1.46%(5)
Ratio of Net Investment Income to Average Net Assets...... (0.37)%(5) 0.63%(5)
Portfolio Turnover Rate................................... 34.69%(4) 77.48%(6)
Average Commission per Share (7).......................... $ 0.06 $ 0.06
</TABLE>
(1) Unaudited.
(2) For the period September 26, 1997 (initial offering date of Advisor Shares
of the Fund) through October 31, 1997.
(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:
1998 - $(4.94) and 37.48%, respectively.
(4) Not annualized.
(5) Annualized.
(6) Represents the Fund's portfolio turnover rate for the entire fiscal year
ended October 31, 1997.
(7) The Fund is required to disclose its average commission rate per share for
trades 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.
- --------------------------------------------------------------------------------
32
<PAGE> 33
- --------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31,
1998 (1) 1997 (2)
---------- -----------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD...................... $ 10.36 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (3)................................. 0.00 0.00
Net Realized and Unrealized Gain on Investments........... 1.63 0.36
------- -------
TOTAL FROM INVESTMENT OPERATIONS.......................... 1.63 0.36
------- -------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains........................... 0.00 0.00
------- -------
Total Distributions....................................... 0.00 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD............................ $ 11.99 $ 10.36
======= =======
TOTAL RETURN................................................ 15.73%(4) 3.60%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)....................... $13,121 $10,066
Ratio of Operating Expenses to Average Net Assets (3)..... 1.35%(5) 1.35%(5)
Ratio of Net Investment Income to Average Net Assets...... 0.09%(5) (0.13)%(5)
Portfolio Turnover Rate................................... 71.67%(4) 11.96%(4)
Average Commission per Share (6).......................... $ 0.06 $ 0.06
</TABLE>
(1) Unaudited.
(2) For the period August 1, 1997 (commencement of investment operations)
through October 31, 1997.
(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:
1998 - $(0.07) and 2.75%, 1997 - $(0.06) and 4.33%, respectively.
(4) Not annualized.
(5) Annualized.
(6) The 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.
- --------------------------------------------------------------------------------
33
<PAGE> 34
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, --------------------------- OCTOBER 31,
1998 (1) 1997 1996 1995 1994 (2)
---------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF
PERIOD................................ $ 9.77 $ 9.70 $ 9.93 $ 9.14 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (3)............. 0.26 0.49 0.53 0.59 0.34
Net Realized and Unrealized Gain
(Loss) on Investments.............. 0.02 0.16 (0.11) 0.79 (0.83)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS...... 0.28 0.65 0.42 1.38 (0.49)
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Investment Income............ (0.26) (0.49) (0.53) (0.59) (0.34)
From Net Realized Capital Gains....... 0.00 (0.09) (0.12) 0.00 0.00
Tax Return of Capital................. 0.00 0.00 0.00 0.00 (0.03)
------- ------- ------- ------- -------
Total Distributions................... (0.26) (0.58) (0.65) (0.59) (0.37)
------- ------- ------- ------- -------
NET ASSET VALUE AT END OF PERIOD........ $ 9.79 $ 9.77 $ 9.70 $ 9.93 $ 9.14
======= ======= ======= ======= =======
TOTAL RETURN............................ 2.93%(4) 7.68% 4.38% 15.62% (4.90)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)... $26,628 $26,683 $23,708 $23,704 $12,905
Ratio of Operating Expenses to Average
Net Assets (3)..................... 1.05%(5) 1.12% 1.12% 1.06% 0.87%(5)
Ratio of Net Investment Income to
Average Net Assets................. 5.40%(5) 5.58% 5.46% 6.35% 6.39%(5)
Portfolio Turnover Rate............... 26.04%(4) 43.65% 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 and/or a
management fee waiver by Schroder Capital Management Inc. (See Note 3 to the
Trust's financial statements.) Had the Investment Adviser not undertaken to
pay, reimburse or waive 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: 1998 - $0.26 and 1.28%, 1997 - $0.47 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.
- --------------------------------------------------------------------------------
34
<PAGE> 35
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, --------------------------- OCTOBER 31,
1998 (1) 1997 1996 1995 1994 (2)
---------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF
PERIOD............................. $ 9.87 $ 9.87 $ 9.88 $ 9.88 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income.............. 0.24(3) 0.46 0.45 0.49(3) 0.30(3)
Net Realized and Unrealized Gain
(Loss) on Investments........... (0.02) (0.00) 0.00 0.00 (0.12)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS... 0.22 0.46 0.45 0.49 0.18
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Investment Income......... (0.24) (0.46) (0.45) (0.49) (0.30)
In Excess of Net Investment
Income.......................... 0.00 0.00 (0.01) 0.00 0.00
------- ------- ------- ------- -------
Total Distributions................ (0.24) (0.46) (0.46) (0.49) (0.30)
------- ------- ------- ------- -------
NET ASSET VALUE AT END OF PERIOD..... $ 9.85 $ 9.87 $ 9.87 $ 9.88 $ 9.88
======= ======= ======= ======= =======
TOTAL RETURN......................... 2.23%(4) 4.74% 4.63% 5.02% 1.83%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period
(000's)......................... $28,434 $27,346 $30,527 $33,936 $30,771
Ratio of Operating Expenses to
Average Net Assets.............. 1.03%(3)(5) 1.03%(3) 1.00% 0.95%(3) 0.78%(3)(5)
Ratio of Net Investment Income to
Average Net Assets.............. 4.82%(5) 4.64% 4.50% 4.91% 4.48%(5)
Portfolio Turnover Rate............ 29.58%(4) 65.57% 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:
1998 - $0.23 and 1.15%, 1997 - $0.46 and 1.05%, 1995 - $0.47 and 1.08%;
1994 - $0.24 and 1.66%, respectively.
(4) Not annualized.
(5) Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
35
<PAGE> 36
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 (UNAUDITED)
NOTE 1 -- ORGANIZATION
Schroder Series Trust (the "Trust"), is an 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
Large Capitalization Equity Fund, Schroder Small Capitalization Value Fund,
Schroder MidCap Value Fund, Schroder Investment Grade Income Fund and Schroder
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." As of April 30,
1998, each Fund had issued Investor Shares and only Schroder Small
Capitalization Value Fund had issued Advisor Shares.
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 are valued at their last reported sale price on the principal exchange,
or, if traded in the over-the-counter market or on a national securities
exchange for which no sales took place on the day of valuation, at the last
available bid price. 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 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 in other mutual funds are valued at the net asset value of those
funds as determined each day. 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: Funds may enter into repurchase agreements with approved
institutions. 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. ("SCM"),
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
- --------------------------------------------------------------------------------
36
<PAGE> 37
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
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 such a manner as
deemed equitable by SCM or the Trustees.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders from net
investment income are declared and distributed at least annually for Schroder
Large Capitalization Equity Fund, Schroder Small Capitalization Value Fund and
Schroder MidCap 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 Funds paid by SCM and
its affiliates in connection with the organization of the Funds have been
deferred by the Funds 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. SCM 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. For this purpose, SCM has specified that its initial investment
in the Schroder MidCap Value Fund was in the amount of $100,000.
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 policy 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 will 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
- --------------------------------------------------------------------------------
37
<PAGE> 38
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
during each calendar year substantially all of their net investment income,
capital gains and certain other amounts, if any, the Funds will not be subject
to a federal excise tax.
As of October 31, 1997, the Funds listed had net tax basis capital loss
carryforwards, for Federal income tax purposes, that may be applied against
taxable gains until their expiration date as follows.
<TABLE>
<CAPTION>
EXPIRATION
DATES
FUND AMOUNT OCTOBER 31,
- ---- ------ -----------
<S> <C> <C>
Schroder MidCap Value Fund........................... $144,374 2005
Schroder Investment Grade Income Fund................ 45,129 2005
Schroder Short-Term Investment Fund.................. 104,408 2004
Schroder Short-Term Investment Fund.................. 4,553 2005
</TABLE>
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 SCM. Under the
agreement, SCM provides investment management services, and is entitled to
receive 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 Large Capitalization Equity Fund; 0.95% for Schroder Small
Capitalization Value Fund; 0.90% for Schroder MidCap Value Fund; 0.50% for
Schroder Investment Grade Income Fund; and 0.40% for Schroder Short-Term
Investment Fund.
Effective April 1, 1998, SCM has voluntarily undertaken, through October 31,
1998, to waive a portion of the investment advisory fees it is entitled to
receive from Schroder Large Capitalization Equity Fund and from Schroder
Investment Grade Income Fund. As a result, during the period of the waiver,
Schroder Large Capitalization Equity Fund will pay investment advisory fees to
SCM at the annual rate of 0.50% of the Fund's average daily net assets, and
Schroder Investment Grade Income Fund will pay no investment advisory fees.
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 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.
- --------------------------------------------------------------------------------
38
<PAGE> 39
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
SCM has voluntarily agreed to reduce its compensation and, if necessary, to pay
certain expenses of each of the Funds until October 31, 1998, to the extent that
a Fund's total operating expenses attributable to its Investor Shares and its
Advisor Shares exceed the following annual rates: 1.55% and 1.80% of average
daily net assets attributable to Investor Shares and Advisor Shares,
respectively, of Schroder Large Capitalization Equity Fund; 1.70% and 1.95% of
average daily net assets attributable to Investor Shares and Advisor Shares,
respectively, of Schroder Small Capitalization Value Fund; 1.35% and 1.60% of
average daily net assets attributable to Investor Shares and Advisor Shares,
respectively, of Schroder MidCap Value Fund; 1.12% and 1.37% of average daily
net assets attributable to Investor Shares and Advisor Shares, respectively, of
Schroder Investment Grade Income Fund; and 1.03% of average daily net assets
attributable to Investor Shares of Schroder Short-Term Investment Fund. The
Trust pays all expenses not assumed by SCM, including Trustees' fees, auditing,
legal, custodial, and shareholder servicing and shareholder reporting expenses.
NOTE 4 -- SHAREHOLDER SERVICING PLAN
The Trust has adopted a shareholder servicing plan for the Advisor Shares of
each Fund. Under the plan, Schroder Fund Advisors Inc. or Service Organizations
provide administrative support services to their customers who hold a Fund's
Advisor Shares. For these shareholder services, Schroder Fund Advisors Inc.
receives compensation monthly at an annual rate of up to 0.25% of the average
daily net assets of each Fund attributable to its Advisor Shares.
NOTE 5 -- TRANSACTIONS WITH AFFILIATES
TRUSTEES' FEES: The Trust pays no compensation to Trustees who are employees of
SCM. Trustees who are not SCM employees will receive an annual retainer of
$11,000 for their services as Trustees of all open end investment companies
distributed by Schroder Fund Advisors Inc., and $1,250 per meeting attended in
person or $500 per meeting attended by telephone. Members of an Audit Committee
for one or more of the investment companies will receive an additional $1,000
per year. Payment of the annual retainer will be allocated among the various
investment companies based on their relative net assets. Payment of meeting fees
will be allocated only among those investment companies to which the meeting
relates.
- --------------------------------------------------------------------------------
39
<PAGE> 40
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
NOTE 6 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund, for the period ended April 30, 1998 were as
follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Schroder Large Capitalization Equity
Fund................................ $51,156,342 $3,576,458 $42,677,263 $ 0
Schroder Small Capitalization Value
Fund................................ 38,388,363 0 32,596,272 0
Schroder MidCap Value Fund............ 9,180,176 0 8,033,076 0
Schroder Investment Grade Income
Fund................................ 581,333 6,159,974 3,159,339 3,660,366
Schroder Short-Term Investment Fund... 1,827,158 1,962,433 3,010,631 3,000,000
</TABLE>
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, 1998 were as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED NET UNREALIZED
IDENTIFIED COST APPRECIATION (DEPRECIATION) APPRECIATION (DEPRECIATION)
--------------- ------------ -------------- ---------------------------
<S> <C> <C> <C> <C>
Schroder Large
Capitalization Equity
Fund................... $56,887,721 $10,540,874 $ (543,066) $ 9,997,808
Schroder Small
Capitalization Value
Fund................... 86,385,044 26,139,401 (1,467,669) 24,671,732
Schroder MidCap Value
Fund................... 11,492,184 2,021,630 (367,185) 1,654,445
Schroder Investment Grade
Income Fund............ 25,558,138 813,396 (13,807) 799,589
Schroder Short-Term
Investment Fund........ 28,156,830 5,136 (11,188) (6,052)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for the
book and Federal income tax purposes at April 30, 1998.
- --------------------------------------------------------------------------------
40
<PAGE> 41
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
NOTE 7 -- SHAREHOLDERS' TRANSACTIONS
Following is a summary of shareholder transactions for each Fund:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
SHARES DOLLARS SHARES DOLLARS
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
SCHRODER LARGE CAPITALIZATION EQUITY
FUND INVESTOR CLASS
Shares sold......................... 1,495,660 $ 21,086,383 1,127,960 $ 15,235,730
Shares issued to shareholders in
reinvestment..................... 672,845 8,486,980 215,393 2,664,515
Shares redeemed..................... (635,311) (8,766,704) (1,720,780) (24,657,976)
---------- ------------ ---------- ------------
Net increase (decrease)............. 1,533,194 $ 20,806,659 (377,427) $ (6,757,731)
========== ============ ========== ============
SCHRODER SMALL CAPITALIZATION VALUE
FUND INVESTOR CLASS
Shares sold......................... 1,445,726 $ 21,982,985 3,086,934 $ 46,850,624
Shares issued to shareholders in
reinvestment..................... 986,922 14,672,281 405,502 5,332,355
Shares redeemed..................... (1,137,139) (17,562,086) (1,744,917) (27,257,461)
---------- ------------ ---------- ------------
Net increase........................ 1,295,509 $ 19,093,180 1,747,519 $ 24,925,518
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD
SEPTEMBER 26, 1997
TO OCTOBER 31, 1997
SHARES DOLLARS SHARES DOLLARS
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
SCHRODER SMALL CAPITALIZATION VALUE
FUND ADVISOR CLASS
Shares sold......................... 589 $ 10,500 3,180 $ 58,347
Shares issued to shareholders in
reinvestment..................... 81 1,208 0 0
Shares redeemed..................... (3,171) (53,927) (0) (0)
---------- ------------ ---------- ------------
Net (decrease) increase............. (2,501) $ (42,219) 3,180 $ 58,347
========== ============ ========== ============
</TABLE>
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41
<PAGE> 42
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1998 FOR THE PERIOD AUGUST 1, 1997
(UNAUDITED) TO OCTOBER 31, 1997
SHARES DOLLARS SHARES DOLLARS
---------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
SCHRODER MIDCAP VALUE FUND INVESTOR
CLASS
Shares sold......................... 379,660 $ 4,132,387 1,017,450 $ 10,654,297
Shares issued to shareholders in
reinvestment..................... 0 0 0 0
Shares redeemed..................... (257,255) (2,825,308) (45,873) (494,073)
---------- ------------ ---------- ------------
Net increase........................ 122,405 $ 1,307,079 971,577 $ 10,160,224
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31, 1997
SHARES DOLLARS SHARES DOLLARS
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
SCHRODER INVESTMENT GRADE INCOME FUND
INVESTOR CLASS
Shares sold......................... 104,052 $ 1,025,036 733,026 $ 7,008,432
Shares issued to shareholders in
reinvestment..................... 72,936 714,415 162,500 1,557,874
Shares redeemed..................... (189,384) (1,859,117) (607,125) (5,839,000)
Income equalization paid............ 0 428 0 2,056
---------- ------------ ---------- ------------
Net (decrease) increase............. (12,396) $ (119,238) 288,401 $ 2,729,362
========== ============ ========== ============
SCHRODER SHORT-TERM INVESTMENT FUND
INVESTOR CLASS
Shares sold......................... 1,098,763 $ 10,834,131 1,733,819 $ 17,100,221
Shares issued to shareholders in
reinvestment..................... 69,081 681,060 143,695 1,417,451
Shares redeemed..................... (1,053,746) (10,390,515) (2,200,190) (21,701,827)
---------- ------------ ---------- ------------
Net increase (decrease)............. 114,098 $ 1,124,676 (322,676) $ (3,184,155)
========== ============ ========== ============
</TABLE>
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42
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
APRIL 30, 1998 (UNAUDITED)
NOTE 8 -- BENEFICIAL INTEREST
The following table shows the number of shareholders each owning 5% or more of a
class of shares of a Fund outstanding as of April 30, 1998 and the total
percentage of the class of shares of the Fund held by such shareholders.
<TABLE>
<CAPTION>
5% OR GREATER SHAREHOLDERS
--------------------------
NUMBER % OF FUND HELD
------- ---------------
<S> <C> <C>
Schroder Large Capitalization Equity Fund -- Investor....... 2 34.02%
Schroder Small Capitalization Value Fund -- Investor........ 2 16.91%
Schroder Small Capitalization Value Fund -- Advisor......... 4 99.98%
Schroder MidCap Value Fund -- Investor...................... 1 30.66%
Schroder Investment Grade Income Fund -- Investor........... 2 57.07%
Schroder Short-Term Investment Fund -- Investor............. 1 5.47%
</TABLE>
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43
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<PAGE> 45
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<PAGE> 46
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<PAGE> 47
INVESTMENT MANAGER
Schroder Capital Management Inc.
OFFICERS
Mark J. Smith, Chairman
Ashbel C. Williams Jr., President
Jane P. Lucas, Vice President
Catherine A. Mazza, Vice President
Robert C. Michele, Vice President
Fergal Cassidy, Treasurer
Alexandra Poe, Clerk
Barbara Gottlieb, Assistant Clerk
TRUSTEES
David N. Dinkins
Peter E. Guernsey
Sharon L. Haugh
John I. Howell
Peter S. Knight
Clarence F. Michaelis
Hermann C. Schwab
Mark J. Smith
TRANSFER AND SHAREHOLDER SERVICING AGENT
Boston Financial Data Services, Inc.
CUSTODIAN
State Street Bank and Trust Company
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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<PAGE> 48
Schroder Series Trust
P.O. Box 8507
Boston, MA 02266
1-800-464-3108
0498WS
(LOGO: SCHRODERS)
-----------------
SCHRODER SERIES TRUST
Schroder Large
Capitalization Equity
Fund
Schroder Small
Capitalization Value Fund
Schroder MidCap
Value Fund
Schroder Investment
Grade Income Fund
Schroder Short-Term
Investment Fund
SEMI-ANNUAL REPORT
April 30, 1998
(Unaudited)
