<PAGE> 1
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SCHRODER SERIES TRUST
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June 3, 1999
Dear Shareholder:
We are pleased to present the semi-annual report for Schroder Series Trust for
the six months ended April 30, 1999. During the six month period, concerns that
affected U.S. financial markets in the fall of 1998 subsided, including concerns
regarding banking sector difficulties and international credit risk. The U.S.
economy proved very resilient following the Federal Reserve's interest rate cut
in October 1998 and, as the period progressed, expectations for both GDP and
corporate earnings growth increased. Gains in productivity accompanied this
economic growth and helped to limit inflationary pressures. The equity market
reacted favorably to these developments, rising strongly over the period. While
the largest companies dominated the rally, in the last few months there were
encouraging indications of a more broad-based move as smaller and medium-sized
companies started to recover. The Treasury bond market was relatively weak, as
yields rose sharply due to concerns about increasing inflation in the future.
However, corporate, mortgage and asset-backed bonds, which had fallen
dramatically following last year's credit scare, fared better than Treasuries as
investors' fears diminished and credit spreads narrowed.
Looking ahead, we believe that U.S. interest rates are likely to increase which
would tend to produce volatility in the stock markets. We expect that investors
will pay increasing attention to securities' valuations as well as to their
growth prospects as these trends emerge. We are encouraged by the long-term
structural shifts in the U.S. economy and believe that Schroders is well placed
to identify both attractively positioned and attractively valued investment
opportunities.
On a corporate note, we would like to take this opportunity to inform you that
Mark Smith has resigned as President of the Funds effective June 2, 1999. In
addition, Schroder Capital Management Inc. and its sister company, Schroder
Capital Management International Inc., responsible for investing in domestic and
international markets, respectively, will be merging into a newly created
corporation called Schroder Investment Management North America Inc. This change
will allow us to simplify our internal corporate structure and to integrate our
international and domestic equity and fixed income management services for U.S.
clients into one corporate entity. We assure you that no changes in Fund
management are planned or anticipated in connection with the merger. The merger
is expected to be effective on or about July 1, 1999.
Thank you for your interest in Schroder Series Trust.
Sincerely,
/s/ Nancy A Curtin /s/ Alexandra Poe
Nancy A. Curtin Alexandra Poe
Chairman President
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SCHRODER LARGE CAPITALIZATION EQUITY FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1999)
Q: How did the Schroder Large Capitalization Equity Fund perform for the six
months ended April 30, 1999?
A: For the six months ended April 30, 1999 the Schroder Large Capitalization
Equity Fund's Investor Shares returned 17.35%. The Fund's benchmark, the S&P
500 Index, returned 22.30% over the same period.
Q: What factors contributed most to performance over the period?
A: In the fourth quarter of 1998, the Fund delivered strong gains, as during
this period the market favored the largest, most liquid companies. During the
first quarter 1999, the market moved away from the top quality, blue chip
companies which the Fund holds, towards smaller cap and cyclical stocks.
Stable inflation and a stronger-than-expected economy boosted confidence, as
fears of the Brazilian crisis affecting the U.S. equity market gradually
diminished. Overall, sector allocation contributed positively to relative
performance, especially the Fund's overweight positions in the communication
services as this sector outperformed. However, the Fund's underweight
position in technology detracted from relative performance, as this sector
led the market.
Q: How is the Fund positioned going forward?
A: The Fund remains diversified among industry sectors, as sector weightings
drive our bottom-up stock selection process. We seek large, quality companies
with the potential for strong earnings growth that are attractively priced
relative to the market. At the end of the period, the Fund was overweight the
capital goods, financial and technology sectors. Within the capital goods
sector, we focused on multi-industry companies with first-class managements.
Within the financial sector, the Fund is overweight financial services as
valuations have been compelling and there is increasing demand for these
types of companies. The Fund holds lower weightings in the consumer cyclicals
and consumer staples sectors, where prospects for growth are less certain.
Q: Overall, for the past 20 months, U.S. large caps have outperformed all other
asset classes. Do you think that this is sustainable?
A: Large cap companies continue to have many excellent fundamental attributes,
including world-class products and management, economies of scale, and the
potential for higher relative returns on investment. Over the last year, a
huge valuation gap has developed between large caps and all other size
segments of the market. In our view this gap will have to contract, but this
is likely to occur through higher prices for small and large cap stocks, with
small caps rising faster. For many investors, large cap equities should form
the core of a diversified portfolio, as a base around which to add more
aggressive, higher risk investments.
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2
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SCHRODER LARGE CAPITALIZATION EQUITY FUND
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Portfolio Characteristics as of April 30, 1999
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Microsoft Corp. 8.3%
General Electric Co. 7.3
IBM 6.2
American International Group,
Inc. 4.5
Intel Corp. 4.3
Bristol-Myers Squibb Co. 4.0
Cisco Systems Inc. 3.7
Lucent Technologies, Inc. 3.4
SBC Communications, Inc. 3.2
Pfizer, Inc. 2.7
----
Total 47.6%
====
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Banks 4.0%
Capital Goods 11.5
Computer Hardware 20.7
Computer Software 9.2
Consumer Cyclicals 4.8
Consumer Discretionary 0.4
Consumer Staples 8.1
Financial Services 15.9
Health Care 10.9
Telecommunications 12.2
Transportation 0.5
Cash Equivalents and Other Net
Assets 1.8
-----
Total 100.0%
=====
</TABLE>
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3
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SCHRODER SMALL CAPITALIZATION VALUE FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1999)
Q: How did the Schroder Small Capitalization Value Fund perform for the six
months ended April 30, 1999?
A: For the six months ended April 30, 1999, the Schroder Small Capitalization
Value Fund's Investor Shares returned 3.64% and its Advisor Shares returned
3.50%. The Fund's benchmark, the Russell 2000 Index, returned 15.16% over the
same period.
Q: What factor had the greatest affect on performance over the period?
A: Most of the last six months was a tale of two cities. It was the best of
times for a very narrow group of mega-cap growth stocks and the worst of
times for much of the rest of the market, especially for small and mid cap
value stocks. The market continued to reward visibility, size and strong
prior price performance while investors liquidated their small cap and value
holdings. Within the small cap universe there was a huge dichotomy in
performance between growth and value stocks, heavily driven by internet
issues. The Russell 2000 Index contains 53 internet-related issues that
constitute approximately 7.5% of the total index capitalization.
Consequently, the Fund's relative performance suffered as our valuation
discipline precludes the Fund from owning any internet stocks.
Q: In April there was a turnaround for small cap stocks. Do you believe that
this is sustainable?
A: Since the first week in April, small and mid cap stocks have led large cap
equities, and the value style of investing has outperformed the growth style.
As a result, the Fund's performance sharply improved during this period. For
the quarter ended April 30, 1999, the Investor Shares of the Fund gained
1.16%, compared to the Russell 2000 Index's gain of 1.70%; in the month of
April alone, however, the Investor Shares of the Fund rose 11.55%, while the
Russell 2000 Index returned 8.96%.
We believe that this change in market leadership may be significant. The
valuation gulf between large and small companies is unprecedented. As of
March 31, 1999, securities in the Fund were trading at an average of 16x our
forecast 1999 earnings estimates compared with 23.9x for the Russell 2000 and
26x for the S&P 500. Augmenting the strong valuation position of small cap
stocks, the market in general may be broadening to include smaller
capitalization companies. Domestically, last fall's interest rate cuts by the
Federal Reserve are beginning to positively influence profitability in
cyclically sensitive sectors while certain emerging countries are starting to
show signs of economic recovery. Energy prices have rebounded dramatically
and should significantly improve company earnings over the next few quarters.
We believe that a general broadening of the market to include basic materials
and capital goods companies in recognition of their improved prospects could
sustain the recent change in leadership, particularly from their current
depressed levels.
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4
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SCHRODER SMALL CAPITALIZATION VALUE FUND
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Q: How is the Fund currently positioned?
A: We increased the Fund's exposure to cyclically sensitive sectors and
companies over the past few months. Valuations were compelling, with many
excellent companies trading at or below book value, and we believed that
earnings rebounds could be dramatic with slight incremental demand
improvement. One of our recent purchases was Case Corp, a worldwide
manufacturer of agricultural and construction equipment. Having traded as
high as $73 in early 1998 the stock was valued at $19 in the first quarter of
1999. At that level, its valuation was compelling at .6x its book value. Its
closest peer company, Deere & Co., the global leader in farm equipment, was
selling at 1.7x book value. While Case may have to adjust its production
schedules while their distributors work off inventories, we expect demand to
stay strong and earnings to resume growth in 2000. Case's earnings peaked at
$5.11 per share in 1997 and we believe that over the next 12 to 18 months the
stock has significant upside potential.
The Fund holds a number of similar high-quality companies at attractive
valuations. Accordingly, we believe we are poised to take advantage of a
market rotation toward small cap and value investing.
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5
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SCHRODER SMALL CAPITALIZATION VALUE FUND
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Portfolio Characteristics as of April 30, 1999
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Cummins Engine Co., Inc. 3.9%
Millipore Corp. 3.6
Case Corp. 3.5
Westpoint Stevens, Inc. 3.5
Warnaco Group, Inc. 3.5
Valassis Communications 3.4
Symantec Corp. 3.4
BJ's Wholesale Club, Inc. 3.3
Protective Life Corp. 3.3
Digital Microwave Corp. 3.1
----
Total 34.5%
====
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Banks & Finance 3.9%
Basic Industry 15.0
Capital Goods 16.3
Consumer Cyclicals 10.7
Consumer Discretionary 7.1
Consumer Staples 3.7
Energy 6.6
Health Care 1.6
Insurance 6.5
Technology 17.1
Transportation 2.5
Utilities 7.0
Cash Equivalents and Other Net
Assets 2.0
-----
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, 1999)
Q: How did the Schroder MidCap Value Fund perform for the six months ended April
30, 1999?
A: For the six months ended April 30, 1999 the Schroder MidCap Value Fund's
Investor Shares rose 20.53% and its Advisor Shares rose 20.37%. The Fund's
benchmark, the S&P MidCap 400 Index (the "Index"), returned 18.86% over the
same period.
Q: During the six month period, how did the Fund perform compared to funds
investing primarily in larger cap stocks, and what is your outlook for mid
cap value stocks?
A: Large cap stocks, as measured by the performance of the S&P 500 Index, have
generally outperformed mid cap stocks since 1994. Valuations of large cap
stocks compared with mid cap stocks had reached unprecedented levels by the
end of the first quarter 1999. The Fund had a 1999 calendar price earnings
ratio of 14.8x compared with the S&P 400 benchmark multiple of 17.3x and the
S&P 500 Index's multiple of 26x, while the three-year projected earnings
growth rates for the Fund and for companies in the S&P 400 of 17% compared
with only 5% for the S&P 500 Index.
During the latter half of the period, investors returned to mid cap stocks
and to value investing. For the quarter ended April 30, 1999, the S&P MidCap
400 Index outperformed the S&P 500 Index 5.10% to 4.67%. For the same
quarter, the Investor shares of the Fund outperformed the majority of funds
containing large cap stocks, as well as delivering strong overall gains
relative to its benchmark, returning 12.38% compared with a gain in the Index
of 5.10%.
In addition to very compelling valuations, the market in general is
broadening. This is due to signs of the beginning of an economic recovery in
emerging countries, and last fall's interest rate cuts by the Federal Reserve
which are starting to positively impact domestic industrial sectors. Energy
prices have also rebounded dramatically. Earnings at many basic and capital
goods companies are likely to reaccelerate over the next six months. Such
companies, given up for dead over the past year, have emaciated market
capitalizations, particularly compared to their mega-cap growth counterparts
which have recently led the market. Incremental capital inflows could make a
dramatic difference to smaller and mid cap valuations.
Q: How is the Fund currently positioned?
A: We increased the Fund's exposure to cyclically sensitive sectors and issues
during the first quarter of 1999, as valuations were compelling. A good
example of the opportunity in cyclical companies this year was Cummins Engine
Co., Inc., the leading maker of heavy diesel engines. By the end of 1998, we
believed that a possible recession in the U.S. economy was adequately
reflected in the stock, which was trading in the $35 range or roughly its
book value. We thought that this represented a level with very little
downside and substantial upside which would occur from one of two
circumstances: either a domestic recession would occur and the stock would
react positively by
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7
<PAGE> 8
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SCHRODER MIDCAP VALUE FUND
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discounting the post-recession earnings recovery, or a domestic recession
would not occur and the stock would react positively by the market eventually
capitulating and placing a reasonable price-to-earnings multiple on current
earnings. We've witnessed the latter scenario and Cummins has been a good
holding for us thus far. The Schroder MidCap Value Fund holds a number of
similar high quality companies with compelling valuations. We believe the
Fund is well positioned to take advantage of a rotation to mid cap and value
style investing.
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8
<PAGE> 9
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SCHRODER MIDCAP VALUE FUND
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Portfolio Characteristics as of April 30, 1999
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Comdisco, Inc. 4.1%
Viad Corp. 3.7
Great Lakes Chemical Corp. 3.7
Lear Corp. 3.5
BJ Services Co. 3.4
Stewart Enterprises, Inc. 3.4
Weatherford Int'l, Inc. 3.4
Cummins Engine Co., Inc. 3.3
Millipore Corp. 3.3
Charter One Financial, Inc. 3.3
----
Total 35.1%
====
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Banks & Finance 12.1%
Basic Industry 12.6
Capital Goods 12.6
Consumer Cyclicals 16.5
Consumer Staples 6.4
Energy 6.9
Health Care 2.5
Insurance 2.9
Technology 21.5
Utilities 5.4
Cash Equivalents and Other Net
Assets 0.6
-----
Total 100.0%
=====
</TABLE>
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9
<PAGE> 10
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SCHRODER INVESTMENT GRADE INCOME FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1999)
Q: How did the Schroder Investment Grade Income Fund perform over the six months
ended April 30, 1999?
A: For the six months ending April 30, 1999, the Schroder Investment Grade
Income Fund returned 0.17%. The Fund's benchmark, the Lehman Brothers
Government/Corporate Index, returned -0.12% over the same period.
Q: During the period, financial markets largely reversed the rapid drop in
interest rates and widening of credit spreads that occurred during the credit
crisis in 1998. How did this affect the Fund?
A: Extreme market movements often create attractive investment opportunities,
and this proved to be the case with last autumn's liquidity crisis. As it
became apparent that the U.S. economy would not be as adversely affected by
the crisis as predicted, we significantly increased the Fund's exposure to
corporate, mortgage, and asset-backed securities. As a result, the Fund was
able to take advantage of the historically high yields of these securities
relative to U.S. Treasuries. Moreover, interest rates continued to reflect an
economic and inflation scenario that was overly optimistic for bonds.
Consequently, the Fund maintained a short duration for much of the six month
period so as to minimize the effect of rising interest rates. While we
anticipate that credit spreads will continue to narrow, we do not expect this
process to be as smooth and dramatic as it has been over the past six months.
Q: What impact did sector allocation and security selection have on the Fund's
performance during the six month period?
A: Both sector allocation and security selection contributed positively to the
Fund's performance over the period. In particular, the Fund benefited from
its predominantly overweight position in corporate, mortgage and asset-backed
securities due to the general outperformance of these securities relative to
U.S. Treasuries. Over the period, bonds were often issued to the market at
discounts to compensate for incremental supply and to overcome investors'
quality and liquidity concerns. We participated in the corporate new-issue
market which benefited Fund performance.
Q: How did you manage credit risk over the period?
A: At the beginning of the six months, we increased the Fund's allocation to the
most liquid, high quality securities as these were the first type of bonds to
reverse last fall's credit spread widening. We gradually decreased the Fund's
exposure to these higher rated securities in favor of less liquid, lower
rated investment grade bonds. These higher rated securities would benefit
from the rise in investor confidence in the U.S. economy and investors'
increased appetite for credit risk. Consequently, we reduced the overall
credit quality of the portfolio during the period to take advantage of what
were still very attractive credit spreads.
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10
<PAGE> 11
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SCHRODER INVESTMENT GRADE INCOME FUND
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Q: What is your outlook for interest rates?
A: Long-term interest rates were relatively stable during the last six month
period, despite a flight to quality to U.S. Treasuries which pushed bond
yields to historic lows. At present, we believe there are few imbalances in
the economy that would argue for a significant change in monetary policy. To
date, strong economic growth has been balanced by an absence of inflationary
pressures, while further contagion from overseas turmoil is now remote. While
the Federal Reserve is likely at some point to remove one or more of the 25
basis point 'insurance' eases from last fall, a repeat of the successive
interest rate hikes of 1994 is highly unlikely. In view of this, we believe
that interest rates will remain relatively stable over the next six months,
albeit at a slightly higher range reflective of the stronger growth
environment.
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11
<PAGE> 12
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SCHRODER INVESTMENT GRADE INCOME FUND
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Portfolio Characteristics as of April 30, 1999
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
U.S. Treasury Bond 11.6%
6.250% 08/15/23
U.S. Treasury Note 5.0
5.375% 02/15/01
Federal National Mortgage
Association 4.6
PC# 409344
6.000% 10/01/13
U.S. Treasury Bond 2.4
7.250% 05/15/16
U.S. Treasury Bond 2.4
5.250% 11/15/28
Chase CMBS 1998-2 A2 2.3
6.390% 11/18/08
Federal National Mortgage
Association 2.1
PC# 313205
10.000% 12/01/20
Federal National Mortgage
Association 1.9
1997-1 B
6.500% 02/18/04
Contimortgage Home Equity 1.9
6.440% 12/15/12
Royal Caribbean Cruises 1.9
8.250% 04/01/05
----
Total 36.1%
====
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Asset Backed Securities 8.2%
Corporate Bonds 36.9
Mortgage Backed Securities 24.0
U.S. Treasury Issues 26.8
Cash Equivalents and Other Net
Assets 4.1
-----
Total 100.0%
=====
</TABLE>
CREDIT QUALITY
<TABLE>
<CAPTION>
% OF MARKET VALUE
RATING OF INVESTMENTS
- -----------------------------------------------
<S> <C>
U.S. Treasury Issues 27.2%
U.S. Government Agencies/
Mortgages 22.6
AAA 12.6
AA 3.2
A 9.8
Baa 24.6
-----
Total 100.0%
=====
</TABLE>
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12
<PAGE> 13
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SCHRODER SHORT-TERM INVESTMENT FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (As of April 30, 1999)
Q: How did the Schroder Short-Term Investment Fund perform over the six months
ended April 30, 1999?
A: For the six months ending April 30, 1999, the Schroder Short-Term Investment
Fund returned 1.76%. The Fund's benchmark, the 90 Day U.S. Treasury Bill,
returned 2.27% over the same period.
Q: What changes did you make to the Fund following last year's rapid drop in
interest rates?
A: Following last year's sharp decline in interest rates, the Fund held a
relatively short maturity profile. With robust economic growth and a
declining demand for the safety of short-term investments, we did not believe
that the low interest rate environment would last. As yields rose during the
period, we gradually increased the average maturity of the securities held by
the Fund to take advantage of more attractive interest rate levels.
Q: What impact did sector allocation have on performance during the six month
period?
A: At the beginning of the period, the Fund held a high proportion of Treasury
bills and other relatively low risk securities, due to the uncertain
financial outlook. As the economic outlook became more favorable, we
minimized these in favor of substantially higher yielding short-term mortgage
and asset backed securities. As a result, the Fund significantly benefited
from the outperformance of these higher yielding sectors relative to U.S.
Treasuries.
Q: What is your outlook for interest rates and how does it affect your
investment strategy for the Fund going forward?
A: At present we believe that there are few imbalances in the economy that would
argue for a significant change in monetary policy. To date, strong economic
growth has been balanced by an absence of inflationary pressures, while
further contagion from overseas turmoil is now remote. However, the money
market yield curve is relatively steep given largely unchanged interest rate
expectations, and Treasury bill yields are considerably below yields of other
money market securities. Therefore, we will continue to emphasize higher
yielding non-government securities as well as securities with slightly longer
maturities in order to maximize portfolio return.
More generally, we will continue to manage the Fund with the aim of providing
superior returns to those of traditional money market investments, such as
bank CDs, at comparatively low risk. The Fund seeks to offer relatively high
liquidity and price stability without unduly compromising return and
therefore may be suitable for low-risk investors with a short-term investment
horizon or with uncertain cash flow needs. The Fund also seeks to provide an
excellent temporary placement for longer-term investments at times of market
volatility or uncertainty.
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13
<PAGE> 14
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SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
Portfolio Characteristics as of April 30, 1999
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Federal National Mortgage 8.5%
Association 1998-65 A1
5.530% 09/16/28
Federal National Mortgage 7.8
Association
Pool #303766
7.500% 12/01/01
Green Tree Financial 6.6
Corporation 1996-10 A4
6.420% 11/15/28
Green Tree Home Improvement 5.3
Loan Trust 1998-B A4
6.390% 02/18/25
Banc One Auto Grantor Trust 5.0
1996-A A
6.100% 10/15/02
Chase Manhattan RV Owner Trust 4.5
1997-A A5
6.050% 11/15/04
Ford Credit Auto Owner Trust 4.2
1998-B A3
5.850% 10/15/01
General Motors Acceptance Corp. 4.1
Medium Term Note
4.996% 10/30/00
Chase Manhattan Auto Owner 4.0
Trust 1997-B A3
6.350% 02/15/01
Green Tree Financial Corp 3.8
1992-2 A4
8.150% 01/15/18
----
Total 53.8%
====
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
- -----------------------------------------------
<S> <C>
Asset and Mortgage Backed
Securities 75.7%
Commercial Paper 10.8
Corporate Bonds 11.4
Cash Equivalents and Other Net
Assets 2.1
-----
Total 100.0%
=====
</TABLE>
CREDIT QUALITY
<TABLE>
<CAPTION>
% OF MARKET VALUE
RATING OF INVESTMENTS
- -----------------------------------------------
<S> <C>
U.S. Government Issues 28.1%
AAA or A1/P1 62.2
AA 1.9
A 7.8
-----
Total 100.0%
=====
</TABLE>
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14
<PAGE> 15
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
ONE YEAR FIVE YEARS AVERAGE ANNUAL ONE YEAR FIVE YEARS AVERAGE ANNUAL
ENDED ENDED RETURN FROM ENDED ENDED RETURN FROM
MARCH 31, MARCH 31, INCEPTION TO APRIL 30, APRIL 30, INCEPTION TO
1999 1999 MARCH 31, 1999(1) 1999 1999 APRIL 30, 1999(1)
--------- ---------- ----------------- --------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Schroder Large
Capitalization Equity
Fund -- Investor........ 18.02% 20.53% 18.68% 21.04% 20.89% 18.84%
Schroder Large
Capitalization Equity
Fund -- Advisor(2)...... 17.95% 20.28% 18.43% 20.95% 20.87% 18.83%
Schroder Small
Capitalization Value
Fund -- Investor........ (25.40)% 10.08% 9.09% (17.36)% 12.19% 11.25%
Schroder Small
Capitalization Value
Fund -- Advisor......... (25.69)% 9.78%(2) 8.79%(2) (17.64)% 12.07%(2) 11.14%(2)
Schroder MidCap Value
Fund -- Investor........ (12.64)% -- 2.82% (2.29)% -- 9.48%
Schroder MidCap Value
Fund -- Advisor(2)...... (12.88)% -- 2.55% (2.42)% -- 9.40%
Schroder Investment Grade
Income
Fund -- Investor........ 5.32% 6.47% 5.82% 5.20% 6.92% 5.78%
Schroder Short-Term
Investment
Fund -- Investor........ 4.66% 4.60% 4.40% 4.61% 4.73% 4.37%
</TABLE>
(1) 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).
(2) Performance for the Fund's Advisor Shares includes information for the
Fund's Investor Shares for the periods prior to the inception date for
Advisor Shares. Such prior performance has been recalculated to reflect the
actual fees and expenses attributable to Advisor Shares.
"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.
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15
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- --------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
BANKS - 4.0%
17,506 Bank One Corporation 1,032,854
4,300 BB&T Corporation 171,731
5,100 Chase Manhattan
Corporation 422,025
5,800 Fifth Third Bancorp 415,788
3,700 Mellon Bank Corporation 274,956
4,600 PNC Bank Corporation 266,225
2,300 State Street Corporation 201,250
-----------
2,784,829
CAPITAL GOODS - 11.5%
48,800 General Electric Company 5,148,400
9,300 General Motors
Corporation 827,118
3,600 Illinois Tool Works,
Incorporated 277,200
4,100 Pitney Bowes,
Incorporated 286,744
12,800 Tyco International
Limited 1,040,000
3,400 United Technologies
Corporation 492,575
-----------
8,072,037
COMPUTER HARDWARE - 20.7%
3,200 Ascend Communications,
Incorporated(1) 309,200
22,600 Cisco Systems,
Incorporated(1) 2,577,812
2,200 Computer Sciences
Corporation 131,038
4,000 Eastman Kodak Company 298,500
10,900 EMC Corporation(1) 1,187,419
2,200 Gateway 2000,
Incorporated(1) 145,613
14,815 Hewlett Packard Company 1,168,533
49,600 Intel Corporation 3,034,900
20,700 International Business
Machines 4,330,181
7,200 Sun Microsystems,
Incorporated(1) 430,650
2,900 Tellabs, Incorporated(1) 317,731
9,870 Xerox Corporation 579,862
-----------
14,511,439
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMPUTER SOFTWARE - 9.2%
5,400 Compuware Corporation(1) 131,625
71,200 Microsoft Corporation(1) 5,789,450
20,500 Oracle Corporation(1) 554,781
-----------
6,475,856
CONSUMER CYCLICALS - 4.8%
8,800 Carnival Corporation 363,000
3,200 Costco Companies,
Incorporated(1) 259,000
6,600 Dayton Hudson Corporation 444,262
6,600 GAP, Incorporated 439,312
21,700 Home Depot, Incorporated 1,300,644
5,300 Lowes Companies,
Incorporated 279,575
2,870 McGraw-Hill Companies,
Incorporated 158,568
3,800 TJX Companies,
Incorporated 126,588
-----------
3,370,949
CONSUMER DISCRETIONARY - 0.4%
10,100 Infinity Broadcasting
Corporation(1) 279,644
-----------
CONSUMER STAPLES - 8.1%
5,400 Albertson's, Incorporated 278,100
7,100 Anheuser Busch Company,
Incorporated 519,187
3,700 Avon Products,
Incorporated 200,956
1,700 Clorox Company 196,138
7,300 ConAgra, Incorporated 181,588
5,800 CVS Corporation 276,225
2,200 Fred Meyer,
Incorporated(1) 119,075
7,000 Kroger Company(1) 380,187
20,200 McDonald's Corporation 855,975
1,900 Omnicom Group,
Incorporated 137,750
15,500 Procter & Gamble Company 1,454,094
7,000 Safeway, Incorporated(1) 377,562
4,700 Staples, Incorporated(1) 141,000
14,000 Walgreen Company 376,250
1,700 Wm. Wrigley Jr. Company 150,769
-----------
5,644,856
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
16
<PAGE> 17
- --------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
FINANCIAL SERVICES - 15.9%
2,100 Aetna, Incorporated 184,144
6,500 American Express Company 849,469
3,600 American General
Corporation 266,400
26,726 American International
Group, Incorporated 3,138,635
15,200 Associates First Capital
Corporation 673,550
3,400 Equitable Companies,
Incorporated 228,862
14,900 Federal Home Loan
Mortgage Corporation 934,975
22,800 Federal National Mortgage
Association 1,617,375
7,200 Household International,
Incorporated 362,250
3,750 Marsh & McLennan Company,
Incorporated 287,109
12,100 MBNA Corporation 341,069
7,200 Morgan Stanley Dean
Witter & Company 714,150
5,500 Travelers Property
Casualty Corporation 189,750
8,400 Washington Mutual,
Incorporated 345,450
23,100 Wells Fargo Company 997,631
-----------
11,130,819
HEALTH CARE - 10.9%
7,600 Amgen, Incorporated(1) 466,925
43,600 Bristol-Myers Squibb
Company 2,771,325
3,800 Cardinal Health,
Incorporated 227,288
4,400 Guidant Corporation 236,225
8,300 Medtronic, Incorporated 597,081
16,200 Pfizer, Incorporated 1,864,012
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
HEALTH CARE - (CONTINUED)
11,100 Pharmacia & Upjohn,
Incorporated 621,600
12,600 Warner Lambert Company 856,013
-----------
7,640,469
TELECOMMUNICATIONS - 12.2%
8,000 Airtouch Communications,
Incorporated(1) 747,000
13,700 Ameritech Corporation 937,594
23,100 Bell Atlantic Corporation 1,331,137
13,800 GTE Corporation 923,738
39,200 Lucent Technologies,
Incorporated 2,356,900
40,300 SBC Communications,
Incorporated 2,256,800
-----------
8,553,169
TRANSPORTATION - 0.5%
10,500 Burlington Northern Santa
Fe Corporation 384,563
-----------
TOTAL COMMON STOCKS
(Cost $58,072,190) - 98.2% 68,848,630
-----------
SHORT TERM
INVESTMENT - 1.4%
954,820 SSgA U.S. Government Fund
4.532%(2)
(Cost $954,820) - 1.4% 954,820
-----------
TOTAL INVESTMENTS
(Cost
$59,027,010) - 99.6% 69,803,450
OTHER ASSETS LESS
LIABILITIES - 0.4% 292,239
-----------
NET ASSETS - 100.0% $70,095,689
-----------
-----------
</TABLE>
(1) Denotes non-income producing security.
(2) Interest rate shown is the 7 day yield as of April 30, 1999.
See notes to financial statements.
- --------------------------------------------------------------------------------
17
<PAGE> 18
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
BANKS & FINANCE - 3.9%
17,000 Cullen/Frost Bankers,
Incorporated 916,937
69,900 Eaton Vance Corporation 1,594,594
-----------
2,511,531
BASIC INDUSTRY - 15.0%
65,900 Aptargroup, Incorporated 1,845,200
40,000 Geon Company 1,225,000
82,400 M.A. Hanna Company 1,333,850
76,500 Millipore Corporation 2,347,594
6,800 Minerals Technologies,
Incorporated 367,200
54,700 OM Group, Incorporated 1,989,712
39,600 Steel Dynamics,
Incorporated(1) 668,250
-----------
9,776,806
CAPITAL GOODS - 16.3%
11,000 Albany International
Corporation 266,750
21,100 Alliant Techsystems,
Incorporated(1) 1,727,562
66,600 Case Corporation 2,306,025
47,200 Cummins Engine Company,
Incorporated 2,525,200
86,900 Gerber Scientific,
Incorporated 1,634,806
22,000 Granite Construction,
Incorporated 628,375
58,600 Kollmorgen Corporation 640,938
39,400 Stone & Webster,
Incorporated 864,338
-----------
10,593,994
CONSUMER CYCLICALS - 10.7%
81,200 BJ's Wholesale Club,
Incorporated(1) 2,156,875
66,500 Capstar Broadcasting
Corporation(1) 1,762,250
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
CONSUMER CYCLICALS - (CONTINUED)
58,500 Sinclair Broadcast Group,
Incorporated(1) 819,000
39,900 Valassis Communications,
Incorporated(1) 2,234,400
-----------
6,972,525
CONSUMER DISCRETIONARY - 7.1%
86,000 Warnaco Group,
Incorporated 2,295,125
67,100 WestPoint Stevens,
Incorporated(1) 2,298,175
-----------
4,593,300
CONSUMER STAPLES - 3.7%
76,000 Nu Skin Enterprises,
Incorporated(1) 1,410,750
26,900 Robert Mondavi
Corporation(1) 975,125
-----------
2,385,875
ENERGY - 6.6%
28,500 BJ Services Company(1) 762,375
178,300 Newpark Resources,
Incorporated(1) 1,638,131
110,000 Plains Resources,
Incorporated(1) 1,876,875
-----------
4,277,381
HEALTH CARE - 1.6%
34,800 Alpharma, Incorporated 1,026,600
-----------
INSURANCE - 6.5%
18,100 HCC Insurance Holdings,
Incorporated 382,363
73,400 Horace Mann Educators
Corporation 1,669,850
55,000 Protective Life
Corporation 2,155,312
-----------
4,207,525
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
18
<PAGE> 19
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
COMMON STOCKS
TECHNOLOGY - 17.1%
148,600 Data General
Corporation(1) 1,736,763
157,700 Digital Microwave
Corporation(1) 2,010,675
74,000 Keane, Incorporated(1) 1,836,125
65,900 Kent Electronics
Corporation(1) 613,694
10,600 Pacific Gateway Exchange,
Incorporated 424,000
48,300 Policy Management Systems
Corporation(1) 1,518,431
19,700 SCI Systems,
Incorporated(1) 749,831
111,900 Symantec Corporation(1) 2,224,012
-----------
11,113,531
TRANSPORTATION - 2.5%
74,700 Air Express International
Corporation 1,634,063
-----------
UTILITIES - 7.0%
48,750 Aquarion Company 1,264,453
14,000 E'Town Corporation 559,125
53,000 Philadelphia Suburban
Corporation 1,195,813
68,355 Southern Union Company 1,520,899
-----------
4,540,290
-----------
TOTAL COMMON STOCKS
(Cost $51,460,846) - 98.0% 63,633,421
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
------ -------
<C> <S> <C>
SHORT TERM INVESTMENTS - 2.2%
2 SSgA Money Market Fund
4.597%(2) 2
1,437,740 SSgA U.S. Government Fund
4.532%(2) 1,437,740
-----------
TOTAL SHORT TERM INVESTMENTS (Cost
$1,437,742) - 2.2% 1,437,742
-----------
TOTAL INVESTMENTS (Cost
$52,898,588) - 100.2% 65,071,163
LIABILITIES IN EXCESS OF OTHER
ASSETS - (0.2)% (103,084)
-----------
NET ASSETS - 100.0% $64,968,079
-----------
-----------
</TABLE>
(1) Denotes non-income producing security.
(2) Interest rate shown is the 7 day yield as of April 30, 1999.
See notes to financial statements.
- --------------------------------------------------------------------------------
19
<PAGE> 20
- --------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
- ------ -------
<C> <S> <C>
COMMON STOCKS
BANKS & FINANCE - 12.1%
13,400 Charter One Financial,
Incorporated 418,750
13,200 Compass Bancshares,
Incorporated 359,700
12,700 Heller Financial,
Incorporated 344,487
20,800 Peoples Heritage Financial
Group, Incorporated 403,000
-----------
1,525,937
BASIC INDUSTRY - 12.6%
7,600 Fort James Corporation 288,800
9,700 Great Lakes Chemical
Corporation 463,781
13,700 Millipore Corporation 420,419
7,100 Nucor Corporation 416,681
-----------
1,589,681
CAPITAL GOODS - 12.6%
7,900 Cummins Engine Company,
Incorporated 422,650
8,700 Deere & Company 374,100
9,600 Lear Corporation(1) 440,400
5,600 Northrop Grumman
Corporation 358,050
-----------
1,595,200
CONSUMER CYCLICALS - 16.5%
16,700 A.H. Belo Corporation 361,137
5,500 Chancellor Media
Corporation(1) 301,813
11,500 Consolidated Stores
Corporation(1) 395,312
6,600 Saks, Incorporated(1) 186,863
6,700 Valassis Communications,
Incorporated(1) 375,200
14,100 Viad Corporation 466,181
-----------
2,086,506
CONSUMER STAPLES - 6.4%
21,800 Stewart Enterprises,
Incorporated 433,275
10,000 Suiza Foods Corporation(1) 375,625
-----------
808,900
</TABLE>
<TABLE>
<CAPTION>
Shares Value $
- ------ -------
<C> <S> <C>
ENERGY - 6.9%
16,200 BJ Services Company(1) 433,350
12,700 Weatherford International,
Incorporated 430,213
-----------
863,563
HEALTH CARE - 2.5%
7,900 Watson Pharmaceuticals,
Incorporated(1) 319,950
-----------
INSURANCE - 2.9%
7,900 Nationwide Financial
Services, Incorporated 366,363
-----------
TECHNOLOGY - 21.5%
14,000 3Com Corporation(1) 365,750
19,500 Comdisco, Incorporated 513,094
11,600 Harris Corporation 400,925
23,200 Parametric Technology
Corporation(1) 303,050
17,800 Sterling Software,
Incorporated(1) 368,237
17,500 The Reynolds & Reynolds
Company 399,219
8,600 Thomas & Betts Corporation 361,200
-----------
2,711,475
UTILITIES - 5.4%
6,500 FPL Group, Incorporated 366,438
13,200 Washington Gas Light
Company 311,025
-----------
677,463
-----------
TOTAL COMMON STOCKS
(Cost $10,812,198) - 99.4% 12,545,038
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
20
<PAGE> 21
- --------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares Value $
- ------ -------
<C> <S> <C>
SHORT TERM
INVESTMENTS - 2.6%
49,709 SSgA Money Market Fund
4.597%(2) 49,709
282,407 SSgA U.S. Government Fund
4.532%(2) 282,407
-----------
TOTAL SHORT TERM
INVESTMENTS
(Cost $332,116) - 2.6% 332,116
-----------
TOTAL INVESTMENTS
(Cost $11,144,314) -102.0% 12,877,154
LIABILITIES IN EXCESS OF
OTHER ASSETS - (2.0)% (256,992)
-----------
NET ASSETS - 100.0% $12,620,162
-----------
-----------
</TABLE>
(1) Denotes non-income producing security.
(2) Interest rate shown is the 7 day yield as of April 30, 1999.
See notes to financial statements.
- --------------------------------------------------------------------------------
21
<PAGE> 22
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
ASSET BACKED
SECURITIES - 8.2%
429,294 Commercial
Resecuritization Trust
Series 1999-1 Class A
6.740% 01/27/2009(1) 417,673
Contimortgage Home
Equity Loan Trust
520,000 Series 1997-4 Class A5
6.440% 12/15/2012 524,519
400,000 Series 1996-3 Class A6
7.830% 02/15/2016 406,128
460,000 Ford Credit Auto Owner
Trust
Series 1998-B Class A3
5.850% 10/15/2001 460,087
465,000 Green Tree Financial
Corporation
Series 1992-2 Class A4
8.150% 01/15/2018 488,008
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $2,313,884) - 8.2% 2,296,415
-----------
GOVERNMENT SECURITIES
U.S. GOVERNMENT SECURITIES - 26.8%
United States Treasury
Bonds
715,000 5.250% 11/15/2028 661,604
3,135,000 6.250% 08/15/2023 3,267,046
585,000 7.250% 05/15/2016 669,117
United States Treasury
Notes
442,517 3.625% 01/15/2008 432,976
280,000 4.750% 02/15/2004 275,181
170,000 4.750% 11/15/2008 162,457
1,400,000 5.375% 02/15/2001 1,407,336
510,000 6.000% 07/31/2002 521,689
140,000 6.500% 05/15/2005 148,131
-----------
TOTAL GOVERNMENT SECURITIES
(Cost
$7,735,008) - 26.8% 7,545,537
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
MORTGAGE BACKED SECURITIES
COLLATERALIZED MORTGAGE
OBLIGATIONS - 8.0%
655,000 Chase Commercial
Mortgage Corporation
Series 1998-2 Class A2
6.390% 11/18/2008 654,181
295,000 DLJ Commercial Mortgage
Corporation
Series 1998-1 Class A1B
6.410% 02/15/2008 293,341
245,000 FFCA Secured Lending
Corporation
Series 1999-1 Class A1A
6.370% 10/18/2008 244,005
500,000 FHLMC
Series 1543 Class PJ
7.000% 10/15/2022 508,565
544,844 FNMA
Series 1997-1 Class B
6.500% 02/18/2004 542,566
-----------
2,242,658
MORTGAGE PASS-THROUGH
SECURITIES - 16.0%
239,672 FHLMC
Pool # G00432
8.000% 01/01/2026 249,559
FNMA
1,293,487 Pool # 409344
6.000% 10/01/2013 1,282,570
369,987 Pool # 303945
7.000% 12/01/2010 378,197
454,952 Pool # 250030
7.000% 05/01/2024 461,348
471,644 Pool # 303909
7.000% 05/01/2026 478,275
535,189 Pool # 313205
10.000% 12/01/2020 579,845
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
22
<PAGE> 23
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
MORTGAGE BACKED SECURITIES
MORTGAGE PASS-THROUGH
SECURITIES - (CONTINUED)
GNMA
398,394 Pool # 780350
6.500% 05/15/2009 403,995
458,307 Pool # 375991
7.000% 01/15/2024 465,612
209,508 Pool # 423825
8.000% 06/15/2026 218,544
-----------
4,517,945
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost
$6,699,404) - 24.0% 6,760,603
-----------
CORPORATE BONDS
INDUSTRIALS - 9.6%
250,000 Coastal Corporation
6.375% 02/01/2009 245,973
285,000 Comdisco, Incorporated
6.000% 01/30/2002 283,484
275,000 IMC Global, Incorporated
7.400% 11/01/2002 281,839
335,000 Lexmark International
Group, Incorporated
6.750% 05/15/2008 329,891
320,000 Nabisco, Incorporated
7.050% 07/15/2007 326,931
495,000 Royal Caribbean Cruises,
Limited
8.250% 04/01/2005 522,997
315,000 Service Corporation
International
6.000% 12/15/2005 298,368
430,000 USA Networks,
Incorporated
6.750% 11/15/2005(1) 428,645
-----------
2,718,128
REITS, INSURANCE, FINANCE &
BANKING - 20.2%
250,000 AFC Capital Trust I
8.207% 02/03/2027 266,490
</TABLE>
<TABLE>
<CAPTION>
REITS, INSURANCE, FINANCE & BANKING -
(CONTINUED)
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
285,000 American Financial
Group, Incorporated
7.125% 04/15/2009 277,584
300,000 Capital One Bank
6.570% 01/27/2003 293,682
400,000 Conseco, Incorporated
6.800% 06/15/2005 384,544
450,000 Donaldson, Lufkin &
Jenrette, Incorporated
6.500% 06/01/2008 435,047
200,000 Duke Realty Limited
Partnership
6.800% 02/12/2009 197,590
475,000 EOP Operating Limited
Partnership
6.800% 01/15/2009 471,618
515,000 Household Finance
Corporation
5.875% 11/01/2002 512,997
400,000 Lehman Brothers,
Incorporated
7.625% 06/01/2006 418,256
345,000 Mack Cali Realty
7.250% 03/15/2009 340,194
500,000 Mellon Bank Corporation
5.750% 11/15/2003 494,125
425,000 Nationsbank Corporation
6.600% 05/15/2010 429,964
100,000 NCNB Corporation
10.200% 07/15/2015 131,510
400,000 Paine Webber Group,
Incorporated
6.550% 04/15/2008 390,748
330,000 Presidential Life
Corporation
7.875% 02/15/2009 321,740
330,000 Salomon Smith Barney,
Incorporated
6.250% 01/15/2005 323,786
-----------
5,689,875
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
23
<PAGE> 24
- --------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
CORPORATE BONDS
TRANSPORTATION - 2.2%
300,000 Delta Air Lines,
Incorporated
6.650% 03/15/2004 302,811
325,000 Union Pacific
Corporation
6.625% 02/01/2029 307,089
-----------
609,900
YANKEE BONDS - 4.9%
375,000 Credit Suisse First
Boston
7.900% 05/29/2049(1) 377,336
170,000 Embotelladora Andina SA
7.875% 10/01/2097 149,898
350,000 Enterprise Oil
6.700% 09/15/2007 346,661
180,000 Korea Development Bank
7.375% 09/17/2004 179,701
180,000 Republic of Chile
6.875% 04/28/2009 180,704
140,000 Republic of Colombia
9.750% 04/23/2009 135,800
-----------
1,370,100
-----------
TOTAL CORPORATE BONDS
(Cost
$10,452,992) - 36.9% 10,388,003
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
SHORT TERM INVESTMENT - 3.8%
1,081,519 SSgA U.S. Government
Fund
4.532%(2) (Cost
$1,081,519) - 3.8% 1,081,519
-----------
TOTAL INVESTMENTS
(Cost
$28,282,807) - 99.7% 28,072,077
OTHER ASSETS LESS
LIABILITIES - 0.3% 85,811
-----------
NET ASSETS - 100.0% $28,157,888
-----------
-----------
</TABLE>
(1) Pursuant to Rule 144A of the Securities Act of 1933, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At April 30, 1999, these securities aggregated
$1,223,654, or 4.3% of the net assets of the Fund.
(2) Interest rate shown is the 7 day yield as of April 30, 1999.
See notes to financial statements.
- --------------------------------------------------------------------------------
24
<PAGE> 25
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
ASSET BACKED SECURITIES - 56.2%
1,357,553 Banc One Auto Grantor
Trust
Series 1996-A Class A
6.100% 10/15/2002 1,363,662
1,094,143 Chase Manhattan Auto
Owner Trust
Series 1997-B Class A3
6.350% 02/15/2001 1,104,110
1,217,282 Chase Manhattan RV Owner
Trust
Series 1997-A Class A5
6.050% 11/15/2004 1,228,993
Contimortgage Home Equity
Loan Trust
1,000,000 Series 1998-2 Class A3
6.130% 03/15/2013 998,438
1,000,000 Series 1997-4 Class A5
6.440% 12/15/2012 1,008,690
120,000 Series 1996-3 Class A6
7.830% 02/15/2016 121,838
150,779 Corestates Home Equity
Trust
Series 1996-1 Class A2
6.750% 12/15/2005 151,459
2,320,435 FNMA
Series 1998-65 Class A1
5.530% 09/16/2028 2,320,435
1,140,000 Ford Credit Auto Owner
Trust
Series 1998-B Class A3
5.850% 10/15/2001 1,140,217
79,015 General Motors Acceptance
Corporation
Series 1997-A Class A
6.500% 04/15/2002 79,847
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
Green Tree Financial
Corporation
607,091 Series 1997-6 Class A3
6.320% 01/15/2029 605,234
1,845,000 Series 1996-10 Class A4
6.420% 11/15/2028 1,821,015
1,000,000 Series 1992-2 Class A4
8.150% 01/15/2018 1,049,480
1,450,000 Green Tree Home
Improvement Loan Trust
Series 1998-B Class A4
6.390% 02/18/2025 1,457,420
879,450 Money Store Auto Trust
Series 1997-4 Class A2
6.350% 03/20/2004 887,892
73,982 Nationsbank Auto Owner
Trust Series 1996-A
Class A3
6.375% 07/15/2000 74,491
-----------
TOTAL ASSET BACKED SECURITIES
(Cost
$15,444,988) - 56.2% 15,413,221
-----------
MORTGAGE BACKED SECURITIES
COLLATERALIZED MORTGAGE OBLIGATIONS -
6.5%
483,749 FHLMC
Series 2020 Class A
6.250% 02/15/2008 484,010
FNMA
226,442 Series 1991-173 Class PH
6.950% 01/25/2020 225,677
931,000 Series 1992-31 Class M
7.750% 03/25/2022 969,227
92,353 GNMA
Series 1995-5 Class H
7.500% 10/20/2018 92,168
-----------
1,771,082
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
25
<PAGE> 26
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
MORTGAGE BACKED SECURITIES
MORTGAGE PASS-THROUGH SECURITIES -
13.0%
FNMA
2,104,433 Pool # 303766
7.500% 12/01/2001 2,134,694
706,020 Pool # 313205
10.000% 12/01/2020 764,930
644,926 GNMA
Pool # 1989
8.500% 04/20/2025 675,560
-----------
3,575,184
-----------
TOTAL MORTGAGE BACKED
SECURITIES
(Cost $5,360,934) - 19.5% 5,346,266
-----------
CORPORATE BONDS - 11.4%
500,000 African Development Bank
6.750% 07/30/1999 501,785
1,000,000 Bankers Trust New York
Corporation
6.625% 07/30/1999 1,004,335
1,125,000 General Motors Acceptance
Corporation MTN(1)
4.996% 10/30/2000 1,124,629
500,000 Japan Development Bank
7.500% 10/25/1999 505,987
-----------
TOTAL CORPORATE BONDS
(Cost $3,133,458) - 11.4% 3,136,736
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount $ Value $
- --------- -------
<C> <S> <C>
COMMERCIAL PAPER - 10.8%
500,000 American Express Company
4.780% 01/10/2000 483,137
500,000 Ford Motor Credit Company
4.740% 08/05/1999 493,627
General Electric Capital
Corporation
500,000 4.870% 09/09/1999 491,303
500,000 4.880% 06/15/1999 497,000
1,000,000 Household Finance
Corporation Ltd.
4.870% 07/27/1999 988,424
-----------
TOTAL COMMERCIAL PAPER
(Cost $2,952,210) - 10.8% 2,953,491
-----------
SHORT TERM
INVESTMENT - 1.8%
494,034 SSgA U.S. Government Fund
4.532%(2)
(Cost $494,034) - 1.8% 494,034
-----------
TOTAL INVESTMENTS
(Cost
$27,385,624) - 99.7% 27,343,748
OTHER ASSETS LESS
LIABILITIES - 0.3% 96,001
-----------
NET ASSETS - 100.0% $27,439,749
-----------
-----------
</TABLE>
(1) Floating rate security.
(2) Interest rate shown is the 7 day yield as of April 30, 1999.
See notes to financial statements.
- --------------------------------------------------------------------------------
26
<PAGE> 27
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999 (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....... $69,803,450 $65,071,163 $12,877,154 $28,072,077 $27,343,748
Dividends receivable....... 75,835 5,243 6,814 0 0
Interest receivable........ 11,954 31,843 5,144 381,415 132,845
Receivable for securities
sold.................... 2,789,420 20,374 182,568 1,986,936 0
Receivable for trust shares
sold.................... 36,222 359,456 1,160 9,330 0
Deferred organizational
costs................... 0 0 15,273 0 0
Prepaid expenses........... 10,327 25,482 3,913 5,103 4,776
Due from Schroder Capital
Management Inc. - Note
3....................... 1,454 2,380 12,129 0 4,673
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS.......... 72,728,662 65,515,941 13,104,155 30,454,861 27,486,042
LIABILITIES
Payable for securities
purchased............... 2,440,130 450,347 402,080 2,249,493 0
Payable for trust shares
redeemed................ 105,675 41,957 0 0 0
Advisory fee payable - Note
3....................... 29,330 48,108 8,668 0 9,314
Shareholder servicing fee
payable - Note 4........ 26 168 29 0 0
Accounts payable and
accrued expenses........ 57,715 5,435 73,216 47,480 36,791
Dividends payable.......... 97 1,847 0 0 188
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES..... 2,632,973 547,862 483,993 2,296,973 46,293
----------- ----------- ----------- ----------- -----------
NET ASSETS............ $70,095,689 $64,968,079 $12,620,162 $28,157,888 $27,439,749
=========== =========== =========== =========== ===========
NET ASSETS
Capital paid-in............ $56,159,709 $53,870,166 $11,543,456 $28,306,565 $27,641,487
Undistributed
(distributions in excess
of) net investment
income.................. 84,070 (118,285) (1,774) 43 (3,572)
Accumulated net realized
gain (loss) on
investments............. 3,075,470 (956,377) (654,360) 62,010 (156,290)
Net unrealized appreciation
(depreciation) of
investments............. 10,776,440 12,172,575 1,732,840 (210,730) (41,876)
----------- ----------- ----------- ----------- -----------
NET ASSETS............ $70,095,689 $64,968,079 $12,620,162 $28,157,888 $27,439,749
=========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
27
<PAGE> 28
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
APRIL 30, 1999 (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................. $70,056,758 $64,833,453 $12,616,160 $28,157,888 $27,439,749
Net asset value, offering
and redemption price per
share................... $ 13.87 $ 13.14 $ 11.71 $ 9.44 $ 9.83
Total shares outstanding at
end of period.............. 5,051,755 4,933,250 1,077,169 2,982,176 2,792,497
Advisor Class:
Net Assets................. $ 38,931 $ 134,626 $ 4,002 $ -- $ --
Net asset value, offering
and redemption price per
share................... $ 13.86 $ 13.07 $ 11.70 $ -- $ --
Total shares outstanding at
end of period.............. 2,809 10,302 342 -- --
Cost of securities........... $59,027,010 $52,898,588 $11,144,314 $28,282,807 $27,385,624
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
28
<PAGE> 29
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (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................ $ 421,236 $ 280,578 $ 59,271 $ 0 $ 0
Interest income................ 44,456 83,359 14,687 875,126 868,093
Foreign taxes withheld......... 0 0 (131) 0 0
----------- ---------- ---------- --------- ---------
TOTAL INCOME.............. 465,692 363,937 73,827 875,126 868,093
EXPENSES
Investment advisory fees - Note
3........................... 255,150 312,980 50,406 70,138 57,846
Shareholder servicing
fee - Note 4................ 26 121 29 0 0
Administrative fees - Note 3... 44,767 43,397 9,842 20,199 20,665
Custodian fees................. 19,746 34,766 26,759 22,030 18,802
Audit fees..................... 8,942 8,943 8,943 8,942 8,942
Legal fees..................... 9,936 9,937 9,937 9,937 9,936
Printing expenses.............. 4,968 4,968 4,968 4,968 4,968
Trustees fees - Note 5......... 3,322 3,671 572 1,564 1,677
Transfer agent fees............ 55,442 54,728 24,177 21,438 31,338
Organizational expenses........ 6,139 6,066 2,864 6,479 4,045
Registration fees.............. 10,160 8,288 9,139 8,544 8,804
Insurance...................... 2,899 3,213 499 1,365 1,461
Other.......................... 1,754 1,944 383 1,011 1,081
Expenses borne by Schroder
Capital Management
Inc. - Note 3............... (15,661) (10,800) (72,917) 0 (20,612)
Expenses waived by Schroder
Capital Management
Inc. - Note 3............... (85,050) 0 0 (70,138) 0
----------- ---------- ---------- --------- ---------
TOTAL EXPENSES............ 322,540 482,222 75,601 106,477 148,953
----------- ---------- ---------- --------- ---------
NET INVESTMENT INCOME
(LOSS)................. 143,152 (118,285) (1,774) 768,649 719,140
----------- ---------- ---------- --------- ---------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) on
investments................. 3,075,995 (874,419) 718,110 62,264 (44,697)
Change in net unrealized
appreciation (depreciation)
of investments.............. 7,413,611 2,883,669 1,439,943 (771,895) (180,996)
----------- ---------- ---------- --------- ---------
NET GAIN (LOSS)................ 10,489,606 2,009,250 2,158,053 (709,631) (225,693)
----------- ---------- ---------- --------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $10,632,758 $1,890,965 $2,156,279 $ 59,018 $ 493,447
=========== ========== ========== ========= =========
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
29
<PAGE> 30
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
APRIL 30, 1999
<TABLE>
<CAPTION>
LARGE CAPITALIZATION SMALL CAPITALIZATION
EQUITY FUND VALUE FUND
------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/99 10/31/98 4/30/99 10/31/98
----------- ----------- ----------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income (loss)....... $ 143,152 $ 205,818 $ (118,285) $ (123,184)
Net realized gain (loss) on
investments...................... 3,075,995 17,791,908 (874,419) 1,642,336
Change in net unrealized
appreciation (depreciation) of
investments...................... 7,413,611 (7,399,855) 2,883,669 (13,419,656)
----------- ----------- ----------- ------------
Net increase (decrease) in net assets
resulting from operations.......... 10,632,758 10,597,871 1,890,965 (11,900,504)
Net equalization (debits) credits..... 0 0 0 0
Dividends and distributions to
Investor Shareholders:
From net investment income......... (180,921) (267,881) 0 0
From net realized capital gains.... (13,211,236) (8,235,872) (1,240,173) (14,815,244)
Dividends and distributions to Advisor
Shareholders:
From net investment income......... 0 -- 0 0
From net realized capital gains.... 0 -- (1,465) (3,017)
Net increase (decrease) from
Investor share transactions...... 12,123,141 13,048,089 (3,629,445) (2,176,361)
Net increase (decrease) from
Advisor share transactions....... 37,500 0 85,589 (7,484)
----------- ----------- ----------- ------------
TOTAL INCREASE (DECREASE).......... 9,401,242 15,142,207 (2,894,529) (28,902,610)
Net Assets
Beginning of period................ 60,694,447 45,552,240 67,862,608 96,765,218
----------- ----------- ----------- ------------
End of period...................... $70,095,689 $60,694,447 $64,968,079 $ 67,862,608
=========== =========== =========== ============
Including undistributed (distributions
in excess of) net investment income... $ 84,070 $ 121,839 $ (118,285) $ 0
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
30
<PAGE> 31
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
APRIL 30, 1999
<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
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
$ (1,774) $ (7,338) $ 768,649 $ 1,478,965 $ 719,140 $ 1,328,646
718,110 (1,230,448) 62,264 937,282 (44,697) (74)
1,439,943 234,550 (771,895) (316,048) (180,996) 113,160
----------- ----------- ----------- ----------- ----------- -----------
2,156,279 (1,003,236) 59,018 2,100,199 493,447 1,441,732
0 0 (1,717) 2,797 0 0
(4,932) 0 (779,739) (1,482,588) (719,140) (1,334,421)
0 0 (875,449) 0 0 0
0 0 -- -- -- --
0 0 -- -- -- --
(17,976) 1,421,327 1,621,988 830,443 (2,388,776) 2,600,601
0 3,184 -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
2,133,371 421,275 24,101 1,450,851 (2,614,469) 2,707,912
10,486,791 10,065,516 28,133,787 26,682,936 30,054,218 27,346,306
----------- ----------- ----------- ----------- ----------- -----------
$12,620,162 $10,486,791 $28,157,888 $28,133,787 $27,439,749 $30,054,218
=========== =========== =========== =========== =========== ===========
$ (1,774) $ 4,932 $ 43 $ 12,850 $ (3,572) $ (3,572)
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
31
<PAGE> 32
- --------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY 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,
1999(1) 1998 1997 1996 1995 1994(2)
---------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD.................. $ 14.75 $ 14.48 $ 12.18 $ 11.12 $ 9.45 $ 10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income...... 0.03(3) 0.05(3) 0.10 0.11 0.11(3) 0.06(3)
Net Realized and Unrealized
Gain (Loss) on
Investments.............. 2.30 2.95 3.04 1.92 1.63 (0.61)
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS............... 2.33 3.00 3.14 2.03 1.74 (0.55)
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Investment
Income................... (0.04) (0.09) (0.11) (0.13) (0.07) 0.00
From Net Realized Capital
Gains.................... (3.17) (2.64) (0.73) (0.84) 0.00 0.00
------- ------- ------- ------- ------- -------
Total Distributions........ (3.21) (2.73) (0.84) (0.97) (0.07) 0.00
------- ------- ------- ------- ------- -------
NET ASSET VALUE AT END OF
PERIOD..................... $ 13.87 $ 14.75 $ 14.48 $ 12.18 $ 11.12 $ 9.45
======= ======= ======= ======= ======= =======
TOTAL RETURN................. 17.35%(4) 23.91% 26.18% 19.30% 18.63% (5.50)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period
(000's).................. $70,057 $60,694 $45,552 $42,905 $38,088 $21,309
Ratio of Operating Expenses
to Average Net Assets.... 0.95%(3,5) 1.04%(3) 1.23% 1.26% 1.40%(3) 1.30%(3,5)
Ratio of Net Investment
Income to Average Net
Assets................... 0.42%(5) 0.36% 0.63% 0.94% 1.27% 1.37%(5)
Portfolio Turnover Rate.... 50.10%(4) 161.11% 64.91% 56.83% 83.15% 102.56%(4)
</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: 1999 - $0.01 and 1.20%, 1998 - $0.03 and 1.20%,
1995 - $0.11 and 1.45%; 1994 - $0.02 and 2.17%, respectively.
(4) Not annualized.
(5) Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
32
<PAGE> 33
- --------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND - ADVISOR SHARES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN ADVISOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
PERIOD
ENDED
APRIL 30,
1999(1,2)
-----------
<S> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD...................... $13.35
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income..................................... 0.00(3)
Net Realized and Unrealized Gain (Loss) on Investments.... 0.51
------
TOTAL FROM INVESTMENT OPERATIONS.......................... 0.51
------
LESS DISTRIBUTIONS:
From Net Investment Income................................ 0.00
From Net Realized Capital Gains........................... 0.00
------
Total Distributions....................................... 0.00
------
NET ASSET VALUE AT END OF PERIOD............................ $13.86
======
TOTAL RETURN................................................ 3.82%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)....................... $ 39
Ratio of Operating Expenses to Average Net Assets......... 1.20%(3,5)
Ratio of Net Investment Income to Average Net Assets...... 0.00%(5)
Portfolio Turnover Rate................................... 50.10%(4,6)
</TABLE>
(1) Unaudited.
(2) For the period January 19, 1999 (initial offering date of Advisor Shares of
the Fund) through April 30, 1999.
(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: 1999 - $(5.58) and 150.35%.
(4) Not annualized.
(5) Annualized.
(6) Represents the Fund's portfolio turnover rate for the entire six months
ended April 30, 1999.
See notes to financial statements.
- --------------------------------------------------------------------------------
33
<PAGE> 34
- --------------------------------------------------------------------------------
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,
1999(1) 1998 1997 1996 1995 1994(2)
---------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD.................. $ 12.91 $ 17.67 $ 13.05 $ 10.77 $ 9.77 $ 10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income
(Loss)................... (0.02) (0.02) (0.05) (0.05) (0.03)(3) 0.00(3)
Net Realized and Unrealized
Gain (Loss) on
Investments.............. 0.49 (2.05) 5.65 2.34 1.03 (0.23)
-------- ------- ------- ------- ------- --------
TOTAL FROM INVESTMENT
OPERATIONS............... 0.47 (2.07) 5.60 2.29 1.00 (0.23)
-------- ------- ------- ------- ------- --------
LESS DISTRIBUTIONS:
From Net Realized Capital
Gains.................... (0.24) (2.69) (0.98) (0.01) 0.00 0.00
-------- ------- ------- ------- ------- --------
Total Distributions........ (0.24) (2.69) (0.98) (0.01) 0.00 0.00
-------- ------- ------- ------- ------- --------
NET ASSET VALUE AT END OF
PERIOD..................... $ 13.14 $ 12.91 $ 17.67 $ 13.05 $ 10.77 $ 9.77
======== ======= ======= ======= ======= ========
TOTAL RETURN................. 3.64%(4) (13.29)% 48.46% 21.17% 10.27% (2.30)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period
(000's).................. $ 64,833 $67,814 $96,709 $48,614 $47,929 $ 21,193
Ratio of Operating Expenses
to Average Net Assets.... 1.47%(5) 1.29% 1.32% 1.43% 1.56%(3) 1.45%(3,5)
Ratio of Net Investment
Income to Average Net
Assets................... (0.36)%(5) (0.14)% (0.36)% (0.34)% (0.29)% 0.17%(5)
Portfolio Turnover Rate.... 46.20%(4) 87.51% 77.48% 81.63% 45.74% 18.53%(4)
</TABLE>
(1) Unaudited.
(2) For the period February 16, 1994 (commencement of investment operations)
through October 31, 1994.
(3) Net Investment Income (Loss) 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.
See notes to financial statements.
- --------------------------------------------------------------------------------
34
<PAGE> 35
- --------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND - ADVISOR SHARES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN ADVISOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31,
1999(1) 1998 1997(2)
---------- ----------- ------------
<S> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD............. $12.86 $ 17.67 $18.29
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Loss.............................. (0.04)(3) (0.02)(3) (0.01)
Net Realized and Unrealized Gain (Loss) on
Investments................................... 0.49 (2.10) (0.61)
------ ------- ------
Total from Investment Operations................. 0.45 (2.12) (0.62)
------ ------- ------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains.................. (0.24) (2.69) 0.00
------ ------- ------
Total Distributions.............................. (0.24) (2.69) 0.00
------ ------- ------
NET ASSET VALUE AT END OF PERIOD................... $13.07 $ 12.86 $17.67
====== ======= ======
TOTAL RETURN....................................... 3.50%(4) (13.63)% (3.39)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's).............. $ 135 $ 49 $ 56
Ratio of Operating Expenses to Average Net
Assets........................................ 1.72%(3,5) 1.54%(3) 1.46%(5)
Ratio of Net Investment Income to Average Net
Assets........................................ (0.66)%(5) (0.42)% 0.63%(5)
Portfolio Turnover Rate.......................... 46.20%(4) 87.51% 77.48%(6)
</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 Loss 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:
1999 - $(1.09) and 23.91%, 1998 - $(3.68) and 77.44%, respectively.
(4) Not annualized.
(5) Annualized.
(6) Represents the Fund's portfolio turnover rate for the entire fiscal year
ended October 31, 1997.
See notes to financial statements.
- --------------------------------------------------------------------------------
35
<PAGE> 36
- --------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND - INVESTOR SHARES
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED YEAR ENDED ENDED
APRIL 30 OCTOBER 31, OCTOBER 31,
1999(1) 1998 1997(2)
---------- ----------- -----------
<S> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD.............. $ 9.72 $ 10.36 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)(3)................... 0.00 (0.01) 0.00
Net Realized and Unrealized Gain (Loss) on
Investments.................................... 1.99 (0.63) 0.36
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.................. 1.99 (0.64) 0.36
------- ------- -------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains................... 0.00 0.00 0.00
------- ------- -------
Total Distributions............................... 0.00 0.00 0.00
------- ------- -------
NET ASSET VALUE AT END OF PERIOD.................... $ 11.71 $ 9.72 $ 10.36
======= ======= =======
TOTAL RETURN........................................ 20.53%(4) (6.18)% 3.60%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)............... $12,616 $10,483 $10,066
Ratio of Operating Expenses to Average Net
Assets(3)...................................... 1.35%(5) 1.35% 1.35%(5)
Ratio of Net Investment Income to Average Net
Assets......................................... (0.03)%(5) (0.06)% (0.13)%(5)
Portfolio Turnover Rate........................... 97.24%(4) 165.62% 11.96%(4)
</TABLE>
(1) Unaudited.
(2) For the period August 1, 1997 (commencement of investment operations)
through October 31, 1997.
(3) Net Investment Income (Loss) 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:
1999 - $(0.06) and 2.48%, 1998 - $(0.12) and 2.47%, 1997 - $(0.06) and
4.33%, respectively.
(4) Not annualized.
(5) Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
36
<PAGE> 37
- --------------------------------------------------------------------------------
SCHRODER MIDCAP 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,
1999(1) 1998(2)
---------- -----------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD...................... $ 9.72 $ 9.30
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Loss(3).................................... (0.01) (0.00)
Net Realized and Unrealized Gain on Investments........... 1.99 0.42
------ -------
TOTAL FROM INVESTMENT OPERATIONS.......................... 1.98 0.42
------ -------
LESS DISTRIBUTIONS:
From Net Realized Capital Gains........................... 0.00 0.00
------ -------
Total Distributions....................................... 0.00 0.00
------ -------
NET ASSET VALUE AT END OF PERIOD............................ $11.70 $ 9.72
====== =======
TOTAL RETURN................................................ 20.37%(4) 4.52%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period (000's)....................... $ 4 $ 3
Ratio of Operating Expenses to Average Net Assets(3)...... 1.60%(5) 1.60%(5)
Ratio of Net Investment Income to Average Net Assets...... (0.28)%(5) (1.06)%(5)
Portfolio Turnover Rate................................... 97.24%(4) 165.62%(6)
</TABLE>
(1) Unaudited.
(2) For the period October 23, 1998 (initial offering date of Advisor Shares of
the Fund) through October 31, 1998.
(3) Net Investment Loss 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:
1999 - $(28.78) and 556.87%, 1998 - $(1.38) and 671.68%.
(4) Not annualized.
(5) Annualized.
(6) Represents the Fund's portfolio turnover rate for the entire fiscal year
ended October 31, 1998.
See notes to financial statements.
- --------------------------------------------------------------------------------
37
<PAGE> 38
- --------------------------------------------------------------------------------
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,
1999(1) 1998 1997 1996 1995 1994(2)
---------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF
PERIOD............................ $ 10.00 $ 9.77 $ 9.70 $ 9.93 $ 9.14 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income(3).......... 0.26 0.54 0.49 0.53 0.59 0.34
Net Realized and Unrealized Gain
(Loss) on Investments........... (0.24) 0.23 0.16 (0.11) 0.79 (0.83)
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS...................... 0.02 0.77 0.65 0.42 1.38 (0.49)
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Investment Income........ (0.27) (0.54) (0.49) (0.53) (0.59) (0.34)
From Net Realized Capital Gains... (0.31) 0.00 (0.09) (0.12) 0.00 0.00
Tax Return of Capital............. 0.00 0.00 0.00 0.00 0.00 (0.03)
------- ------- ------- ------- ------- -------
Total Distributions............... (0.58) (0.54) (0.58) (0.65) (0.59) (0.37)
------- ------- ------- ------- ------- -------
NET ASSET VALUE AT END OF PERIOD.... $ 9.44 $ 10.00 $ 9.77 $ 9.70 $ 9.93 $ 9.14
======= ======= ======= ======= ======= =======
TOTAL RETURN........................ 0.17%(4) 8.10% 7.68% 4.38% 15.62% (4.90)%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of Period
(000's)......................... $28,158 $28,134 $26,683 $23,708 $23,704 $12,905
Ratio of Operating Expenses to
Average Net Assets(3)........... 0.76%(5) 0.89% 1.12% 1.12% 1.06% 0.87%(5)
Ratio of Net Investment Income to
Average Net Assets.............. 5.47%(5) 5.47% 5.58% 5.46% 6.35% 6.39%(5)
Portfolio Turnover Rate........... 125.20%(4) 112.69% 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: 1999 - $0.24 and 1.26%, 1998 - $0.51 and 1.25%,
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.
- --------------------------------------------------------------------------------
38
<PAGE> 39
- --------------------------------------------------------------------------------
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,
1999(1) 1998 1997 1996 1995 1994(2)
---------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF PERIOD...... $ 9.90 $ 9.87 $ 9.87 $ 9.88 $ 9.88 $ 10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income.... 0.24(3) 0.46(3) 0.46(3) 0.45 0.49(3) 0.30(3)
Net Realized and
Unrealized Gain (Loss)
on Investments......... (0.07) 0.03 (0.00) 0.00 0.00 (0.12)
------- ------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS............. 0.17 0.49 0.46 0.45 0.49 0.18
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From Net Investment
Income................. (0.24) (0.46) (0.46) (0.45) (0.49) (0.30)
In Excess of Net
Investment Income...... 0.00 0.00 0.00 (0.01) 0.00 0.00
------- ------- ------- ------- ------- -------
Total Distributions...... (0.24) (0.46) (0.46) (0.46) (0.49) (0.30)
------- ------- ------- ------- ------- -------
NET ASSET VALUE AT END OF
PERIOD................... $ 9.83 $ 9.90 $ 9.87 $ 9.87 $ 9.88 $ 9.88
======= ======= ======= ======= ======= =======
TOTAL RETURN............... 1.76%(4) 5.09% 4.74% 4.63% 5.02% 1.83%(4)
RATIOS & SUPPLEMENTAL DATA
Net Assets at End of
Period (000's)......... $27,440 $30,054 $27,346 $30,527 $33,936 $30,771
Ratio of Operating
Expenses to Average Net
Assets................. 1.03%(3,5) 1.03%(3) 1.03%(3) 1.00% 0.95%(3) 0.78%(3,5)
Ratio of Net Investment
Income to Average Net
Assets................. 4.97%(5) 4.65% 4.64% 4.50% 4.91% 4.48%(5)
Portfolio Turnover
Rate................... 8.87%(4) 92.95% 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:
1999 - $0.24 and 1.17%, 1998 - $0.45 and 1.12%, 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.
- --------------------------------------------------------------------------------
39
<PAGE> 40
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (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,
1999, each Fund had issued Investor Shares and Schroder Large Capitalization
Equity Fund, Schroder Small Capitalization Value Fund and Schroder MidCap 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 for which current market quotations are not readily available are
valued at fair value as determined in accordance with procedures approved by the
Board of Trustees of the Trust ("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
- --------------------------------------------------------------------------------
40
<PAGE> 41
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
of sale, including accrued interest, are 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 and/or class of shares.
Expenses not directly attributed to a specific Fund and/or class of shares are
allocated among the Funds and/or classes of shares 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 and the initial
public offering of their shares 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.
Schroder Large Capitalization Equity Fund, Schroder Small Capitalization Value
Fund, Schroder Investment Grade Income Fund and Schroder Short-Term Investment
Fund have concluded amortizing their organizational costs. SCM has agreed with
respect to the Schroder MidCap Value Fund that, if any of the initial shares of
the 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
- --------------------------------------------------------------------------------
41
<PAGE> 42
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
substantially all of their taxable income, including realized capital gains, for
the fiscal year. In addition, by distributing during each calendar year
substantially all of their net investment income, capital gains and certain
other amounts, if any, the Funds will not be subject to a federal excise tax.
As of October 31, 1998, 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.......................... $ 144,375 2005
Schroder MidCap Value Fund.......................... 1,137,669 2006
Schroder Short-Term Investment Fund................. 104,408 2004
Schroder Short-Term Investment Fund................. 4,553 2005
Schroder Short-Term Investment Fund................. 2,632 2006
</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.
SCM is contractually obligated, through October 31, 1999, 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.
In addition, SCM is contractually obligated to reduce its compensation and, if
necessary, to pay certain expenses of each of the Funds until October 31, 1999,
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
- --------------------------------------------------------------------------------
42
<PAGE> 43
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
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 independent Trustees'
fees, auditing, legal, custodial, and shareholder servicing and shareholder
reporting expenses.
It is expected that on or about July 1, 1999, SCM and its sister company,
Schroder Capital Management International Inc., will merge into a newly
organized Schroder entity to be known as Schroder Investment Management North
America Inc.
The Trust has 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.
Effective June 1, 1999, the terms of the Administration Agreement were amended.
Under the revised Administration Agreement, the Trust, in addition to other
Series managed by Schroder, will pay fees based on the combined average daily
net assets of all Funds in the Schroder complex, according to the following
annual rates: 0.06% of the first $1.7 billion of such assets, 0.04% of the next
$1.7 billion of such assets, and 0.02% of such assets in excess of $3.4 billion,
subject to certain minimum requirements.
NOTE 4 -- SHAREHOLDER SERVICING PLAN
The Trust has adopted a shareholder servicing plan for the Advisor Shares of
each Fund except Schroder Short-Term Investment Fund (which does not issue
Advisor Shares). 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. For their services as Trustees of all open-end investment companies
distributed by Schroder Fund Advisors Inc., with the exception of Schroder
Series Trust II, trustees who are not interested persons of the Trust, SCM or
Schroder Fund Advisors Inc. will receive an annual retainer of $11,000 and
$1,250 per meeting attended in person or $500 per meeting attended by
- --------------------------------------------------------------------------------
43
<PAGE> 44
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
telephone. Members of an Audit Committee for one or more of such investment
companies receive an additional $1,000 per year. Payment of the annual retainer
is allocated among such 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.
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, 1999 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................................ $33,471,757 $ 0 $35,585,829 $ 0
Schroder Small Capitalization Value
Fund................................ 29,957,277 0 33,256,146 0
Schroder MidCap Value Fund............ 10,812,185 0 10,659,657 0
Schroder Investment Grade Income
Fund................................ 14,269,531 20,767,628 11,146,498 23,097,674
Schroder Short-Term Investment Fund... 7,714,631 7,339,791 1,000,000 1,000,000
</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, 1999 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.................. $59,027,010 $11,494,065 $ (717,625) $10,776,440
Schroder Small
Capitalization Value
Fund.................. 52,898,588 14,248,858 (2,076,283) 12,172,575
Schroder MidCap Value
Fund.................. 11,144,314 1,986,609 (253,769) 1,732,840
Schroder Investment
Grade Income Fund..... 28,282,807 160,743 (371,473) (210,730)
Schroder Short-Term
Investment Fund....... 27,385,624 36,222 (78,098) (41,876)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at April 30, 1999.
- --------------------------------------------------------------------------------
44
<PAGE> 45
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
NOTE 7 -- SHAREHOLDERS' TRANSACTIONS
Following is a summary of shareholder transactions for each Fund:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998
SHARES DOLLARS SHARES DOLLARS
--------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
SCHRODER LARGE CAPITALIZATION EQUITY
FUND INVESTOR CLASS
Shares sold......................... 770,079 $ 10,677,173 2,358,624 $ 33,242,828
Shares issued to shareholders in
reinvestment..................... 1,029,955 13,358,523 672,845 8,486,981
Shares redeemed..................... (862,210) (11,912,555) (2,063,508) (28,681,720)
--------- ------------ ---------- ------------
Net increase........................ 937,824 $ 12,123,141 967,961 $ 13,048,089
========= ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 19, 1999
TO APRIL 30, 1999
(UNAUDITED)
SHARES DOLLARS
--------- ------------
<S> <C> <C> <C> <C>
SCHRODER LARGE CAPITALIZATION EQUITY
FUND ADVISOR CLASS
Shares sold.......................... 2,809 $ 37,500
Shares issued to shareholders in
reinvestment...................... 0 0
Shares redeemed...................... (0) (0)
--------- ------------
Net increase......................... 2,809 $ 37,500
========= ============
</TABLE>
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45
<PAGE> 46
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998
SHARES DOLLARS SHARES DOLLARS
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
SCHRODER SMALL CAPITALIZATION VALUE
FUND INVESTOR CLASS
Shares sold........................ 1,080,493 $ 14,056,246 2,332,423 $ 33,749,377
Shares issued to shareholders in
reinvestment.................... 94,824 1,228,923 987,453 14,680,429
Shares redeemed.................... (1,494,932) (18,914,614) (3,538,630) (50,606,167)
---------- ------------ ---------- ------------
Net (decrease)..................... (319,615) $ (3,629,445) (218,754) $ (2,176,361)
========== ============ ========== ============
SCHRODER SMALL CAPITALIZATION VALUE
FUND ADVISOR CLASS
Shares sold........................ 6,587 $ 86,833 4,118 $ 50,654
Shares issued to shareholders in
reinvestment.................... 112 1,442 81 1,208
Shares redeemed.................... (210) (2,686) (3,566) (59,346)
---------- ------------ ---------- ------------
Net increase (decrease)............ 6,489 $ 85,589 633 $ (7,484)
========== ============ ========== ============
SCHRODER MIDCAP VALUE FUND INVESTOR
CLASS
Shares sold........................ 175,865 $ 1,844,321 612,837 $ 6,657,769
Shares issued to shareholders in
reinvestment.................... 473 4,931 0 0
Shares redeemed.................... (177,365) (1,867,228) (506,218) (5,236,442)
---------- ------------ ---------- ------------
Net (decrease) increase............ (1,027) $ (17,976) 106,619 $ 1,421,327
========== ============ ========== ============
</TABLE>
- --------------------------------------------------------------------------------
46
<PAGE> 47
- --------------------------------------------------------------------------------
SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED FOR THE PERIOD
APRIL 30, 1999 OCTOBER 23, 1998
(UNAUDITED) TO OCTOBER 31, 1998
SHARES DOLLARS SHARES DOLLARS
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
SCHRODER MIDCAP VALUE FUND ADVISOR
CLASS
Shares sold........................ 0 $ 0 342 $ 3,184
Shares issued to shareholders in
reinvestment.................... 0 0 0 0
Shares redeemed.................... (0) (0) (0) (0)
---------- ------------ ---------- ------------
Net increase....................... 0 $ 0 342 $ 3,184
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31, 1998
SHARES DOLLARS
---------- ------------
<S> <C> <C> <C> <C>
SCHRODER INVESTMENT GRADE INCOME FUND
INVESTOR CLASS
Shares sold........................ 613,949 $ 5,908,873 413,213 $ 4,144,975
Shares issued to shareholders in
reinvestment.................... 170,860 1,653,059 147,906 1,460,393
Shares redeemed.................... (616,195) (5,939,944) (479,624) (4,772,128)
Income equalization (received)
paid............................ 0 1,717 0 (2,797)
---------- ------------ ---------- ------------
Net increase....................... 168,614 $ 1,623,705 81,495 $ 830,443
========== ============ ========== ============
SCHRODER SHORT-TERM INVESTMENT FUND
INVESTOR CLASS
Shares sold........................ 1,237,591 $ 12,207,145 2,559,113 $ 25,265,801
Shares issued to shareholders in
reinvestment.................... 71,968 709,565 135,287 1,334,916
Shares redeemed.................... (1,551,943) (15,305,486) (2,430,714) (24,000,116)
---------- ------------ ---------- ------------
Net (decrease) increase............ (242,384) $ (2,388,776) 263,686 $ 2,600,601
========== ============ ========== ============
</TABLE>
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47
<PAGE> 48
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SCHRODER SERIES TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
APRIL 30, 1999 (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, 1999 and the total
percentage of the class of shares of the Fund held by such shareholder(s).
<TABLE>
<CAPTION>
5% OR GREATER SHAREHOLDERS
--------------------------
NUMBER % OF FUND HELD
------- ---------------
<S> <C> <C>
Schroder Large Capitalization Equity Fund -- Investor....... 2 37.62%
Schroder Large Capitalization Equity Fund -- Advisor........ 1 100.00%
Schroder Small Capitalization Value Fund -- Investor........ 1 5.28%
Schroder Small Capitalization Value Fund -- Advisor......... 2 98.16%
Schroder MidCap Value Fund -- Investor...................... 3 46.27%
Schroder MidCap Value Fund -- Advisor....................... 1 100.00%
Schroder Investment Grade Income Fund -- Investor........... 2 52.34%
Schroder Short-Term Investment Fund -- Investor............. 2 11.92%
</TABLE>
- --------------------------------------------------------------------------------
48
<PAGE> 49
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<PAGE> 50
(This page has been left blank intentionally.)
<PAGE> 51
INVESTMENT MANAGER
Schroder Capital Management Inc.
OFFICERS
Nancy A. Curtin, Chairman
Alexandra Poe, President
Jane P. Lucas, Vice President
Catherine A. Mazza, Vice President
Robert C. Michele, Vice President
Alan M. Mandel, Treasurer and Clerk
Fergal Cassidy, Assistant Treasurer
Barbara Gottlieb, Assistant Clerk
TRUSTEES
Nancy A. Curtin
David N. Dinkins
Peter E. Guernsey
Sharon L. Haugh
John I. Howell
Peter S. Knight
William L. Means
Clarence F. Michalis
Hermann C. Schwab
TRANSFER AND SHAREHOLDER SERVICING AGENT
Boston Financial Data Services, Inc.
CUSTODIAN
State Street Bank and Trust Company
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
The information contained in this report is intended for the general information
of the shareholders of the Trust. This report is not authorized for distribution
to prospective investors unless preceded or accompanied by a current Trust
prospectus which contains important information concerning the Trust.
- --------------------------------------------------------------------------------
<PAGE> 52
Schroder Series Trust
P.O. Box 8507
Boston, MA 02266
800-464-3108
0699WSSA
[SCHRODERS LOGO]
----------------------------------------------
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, 1999
(Unaudited)
