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Rule 497(e)
Registration No. 33-65632
SCHRODER SERIES TRUST
PROSPECTUS SUPPLEMENT
TO INVESTOR SHARES PROSPECTUS DATED MARCH 1, 1998
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The following sentences are added after the second sentence in the second full
paragraph on page 23 of the Prospectus:
"In addition, Schroder has voluntarily undertaken, through the end of the
current fiscal year, to waive a portion of the management 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 management
fees to Schroder at the annual rate of 0.50% of the Fund's average daily
net assets, and Schroder Investment Grade Income Fund will pay no
management fees."
Accordingly, the Annual Operating Expenses table and Example on pages 4 and 5,
respectively, of the Prospectus are amended to read as follows with respect to
Schroder Large Capitalization Equity Fund and Schroder Investment Grade Income
Fund:
ANNUAL OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
Schroder Schroder
Large Investment
Capitalization Grade Income
Equity Fund Fund
-------------- ------------
<S> <C> <C>
Management Fees (after expense limitation) ...................... 0.50(1) 0.00(1)
12b-1 Fees ...................................................... None None
Other Expenses .................................................. 0.48 0.83
Total Fund Operating Expenses (after expense limitation) ........ 0.98(1) 0.83(1)
</TABLE>
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(1) The Management Fees and Total Fund Operating Expenses for Schroder Large
Capitalization Equity Fund and Schroder Investment Grade Income Fund reflect
expense limitations currently in effect. See "Management of the Trust" below.
In the absence of the limitations, Management Fees and Total Fund Operating
Expenses, respectively, for Investor Shares of these Funds would be as follows:
Schroder Large Capitalization Equity Fund - 0.75% and 1.23%; Schroder Investment
Grade Income Fund - 0.50% and 1.33%.
EXAMPLE
Your investment of $1,000 would incur the following expenses, assuming 5% annual
return and redemption at the end of each period:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
Funds:
Schroder Large Capitalization Equity Fund .... $10 $31 $54 $121
Schroder Investment Grade Income Fund ........ $9 $27 $46 $103
</TABLE>
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The last sentences in the third full paragraph on page 23 of the Prospectus are
amended to read as follows:
"Ms. Nancy B. Tooke, Director, Senior Vice President and Portfolio Manager
at Schroder, is primarily responsible for making recommendations to the
committee for Schroder Small Capitalization Value Fund and Schroder MidCap
Value Fund. Mr. Robert C. Michele, Director, Senior Vice President and
Portfolio Manager at Schroder, and Mr. Richard Gotterer, Assistant Vice
President and Portfolio Manager at Schroder, are primarily responsible for
making recommendations to the committee for Schroder Investment Grade
Income Fund and Schroder Short-Term Investment Fund, Ms. Tooke has had her
responsibilities since the organization of the Funds. Messrs. Morris,
Michele, and Gotterer have had their responsibilities since March 1997,
April 1998, and March 1998, respectively. Each of the named managers has
several years of experience in managing investment portfolios comparable to
those for which each has such responsibility. Mr. Gotterer has been a
member of the team managing Schroder Investment Grade Income Fund and
Schroder Short-Term Investment Fund since the organization of the Funds."
The following section is added immediately prior to the section entitled
"Performance Information" on page 24 of the Prospectus:
YEAR 2000 DISCLOSURE
The Funds receive services from Schroder Capital Management Inc., Schroder Fund
Advisors Inc., BFDS, State Street Bank and Trust Company, and other providers
which rely on the smooth functioning of their respective systems and the systems
of others to perform those services. It is generally recognized that certain
systems in use today may not perform their intended functions adequately after
the Year 1999 because of the inability of the software to distinguish the Year
2000 from the Year 1900. Schroder Capital Management Inc. is taking steps that
it believes are reasonably designed to address this potential "Year 2000"
problem and to obtain satisfactory assurances that comparable steps are being
taken by each of the Funds' other major service providers. There can be no
assurance, however, that these steps will be sufficient to avoid any adverse
impact on the Funds from this problem.
May 14, 1998
