<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
May 24, 2000
Dear Shareholder:
We are pleased to present the semi-annual report for Schroder Series Trust
for the six months ended April 30, 2000.
The first half of fiscal 2000 was a period of great change for Schroders. On
January 18, 2000, Schroders plc announced the sale of its investment banking
business to Salomon Smith Barney. It is expected that the sale of the investment
bank will prove to have several positive implications for the Schroder
Investment Management companies. First, the sale provides ample capital
available for investment in our business. In addition, investment management is
now the dominant focus of the entire Schroders organization.
During this reporting period, the U.S. economy continued to roar ahead,
although cyclical strains have started to surface. While the current inflation
picture remains relatively benign, the Federal Reserve responded to the
explosive pace of consumer and business spending and creeping wage and price
pressures with a series of three tightening moves in an attempt to cool the
economy and quash any signs of incipient inflation. We expect additional
interest rate hikes--indeed, the Fed already pushed the Fed funds rate up by
another 50 basis points in May--until the Fed feels that growth has slowed to a
more sustainable pace. We believe that the Fed will be successful in
orchestrating a "soft landing," and that ultimately the environment will be
favorable for financial assets. In the process, though, securities markets are
likely to remain volatile.
In this type of setting, there are certain basic principles that can help
investors make successful decisions. First, maintaining a long-term view of
one's investment portfolio can help to weather the inevitable ups and downs in
financial markets. Over longer periods of time, stock prices have outperformed
fixed-income assets and have stayed ahead of inflation. Second, diversification
is key to managing risk. Investors are best served by investing not only in a
variety of stocks, but also investing across asset classes. We believe that
times like these support the case for a disciplined, diversified investing
program, including smaller-cap equities, international and emerging markets, and
fixed-income investments.
We expect the second half of fiscal 2000 to bring some strategic changes to
the Schroder Fund family. In addition to merging share classes of certain funds,
the Short-Term Investment Fund will close and return funds to shareholders, as
we believe it has become too small to operate at a competitive expense ratio.
This report includes performance information, the schedule of investments,
comments from portfolio managers, and other relevant information for each fund.
We encourage you to read the report, and thank you for making Schroders part of
your investment program.
Sincerely,
/s/ Alexandra Poe
Alexandra Poe
PRESIDENT
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
For the six months ended April 30, 2000, the Schroder Large Capitalization
Equity Fund's Investor Shares returned 0.17% and its Advisors Shares returned
-0.07%. The S&P 500 Index rose 7.17% over the same period.
Relative to the benchmark, strong stock selection in health care and
consumer cyclicals was not enough to offset the weakness of a few significant
underperformers and an underweight position in technology--by far the
best-performing sector of the market over the period.
MARKET BACKGROUND
The strong momentum of technology stocks and a torrid rate of U.S. economic
growth dominated investor attention during the six-month period. Millennium-end
enthusiasm for the Internet and e-commerce drove technology shares to record
highs in the final months of 1999 and into mid-March 2000. At the same time,
U.S. economic growth accelerated into the New Year. The market believed that the
Federal Reserve would be successful in slowing the economy and that the end of
the tightening was visible. Consistent with the bond market, the stock market
had an appetite only for those companies with some immunity to a slowing
economy. In this environment, technology stocks were the clear winners.
By April, however, economic growth was showing little indication of easing.
Against a background of rising short-term interest rates and an increasingly
hawkish Federal Open Market Committee (FOMC), investors anxiously awaited signs
of slower growth. Long-term interest rates began to back up, and the first
worrisome evidence of inflation pressure appeared in the Consumer Price Index
and Employment Cost Index. Valuation once again became important to investors.
This environment hurt stocks with relatively high price/earnings (P/E)
multiples, and this led to the underperformance of the technology-heavy NASDAQ
Composite and the technology sectors of both the S&P 500 and the Russell 2000.
Likewise, communication services also lagged the S&P Index. The perceived safety
of the utility sector attracted more defensive-minded investors and produced
well above-average returns. In some instances, the market, however, did
recognize the value of superior long-term stable growth as a potential
opportunity in the face of possible further drastic measures to slow the pace of
the economy. The health care segment, for example, showed improving returns.
PORTFOLIO REVIEW
Because of what we perceived to be excessive valuations and volatility
concerns, the Fund remained relatively underweight in technology. This position
and the significant underperformance of MICROSOFT, PROCTER & GAMBLE, ASSOCIATES
FIRST CAPITAL, and BRISTOL MYERS SQUIBB were the major constraints on relative
performance during this semi-annual period. BRISTOL MYERS SQUIBB is, however,
among the most attractively valued health care stocks; concerns over its
potential blood pressure drug, VANLEV, are more than accounted for in the share
price. The Fund liquidated its holdings in PROCTER & GAMBLE, because we believed
that competitive pressures on the company's margins were likely to remain a
problem. The Fund also sold its position in ASSOCIATES FIRST CAPITAL, as the
outlook for earnings growth worsened. The largest contributors to relative
performance were the medical device manufacturer, MEDTRONIC, and technology
stocks, INTEL, TEXAS INSTRUMENTS, and ORACLE SYSTEMS. Overall, stock selection
for the Fund was strong in consumer cyclicals and health care, despite the
lackluster performance of BRISTOL MYERS.
--------------------------------------------------------------------------------
2
<PAGE>
--------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
--------------------------------------------------------------------------------
OUTLOOK
We anticipate that volatility will remain high in the context of the FOMC's
efforts to engineer a so-called "soft landing" for the U.S. economy. Higher
interest rates should continue to affect earnings. A middle road appears
warranted until the magnitude of the slowdown and the measures required to
attain it can be better gauged. In this context, relative performance will rely
on stock selection more than on sector weights.
We wish to take this opportunity to inform you that on May 23, 2000, the
Trustees approved an Agreement and Plan of Reorganization, subject to
shareholder approval, to have the Fund merge into Schroder U.S. Diversified
Growth Fund, a series of Schroder Capital Funds (Delaware) which is advised by
Schroder Investment Management North America Inc.
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. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
3
<PAGE>
--------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Intel 4.7%
Oracle 4.6
Sun Microsystems 3.9
General Electric 3.7
Texas Instruments 3.7
Cisco Systems 3.5
GTE 3.5
Microsoft 3.4
Exxon Mobil 3.0
Warner Lambert 3.0
----------
Total 37.0%
==========
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Basic Industries 2.6%
Capital Goods 8.0
Computer Hardware 20.2
Computer Services 2.0
Computer Software 8.7
Consumer Cyclicals 6.1
Consumer Staples 8.3
Energy 7.1
Financial Services 13.3
Health Care 10.1
Telecommunications 9.5
Utilities 1.9
Cash Equivalents and Other Net Assets 2.2
----------
Total 100.0%
==========
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
AVERAGE ANNUAL AVERAGE ANNUAL
ONE YEAR FIVE YEARS RETURN FROM ONE YEAR FIVE YEARS RETURN FROM
ENDED ENDED INCEPTION TO ENDED ENDED INCEPTION TO
MARCH 31, MARCH 31, MARCH 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000(1) 2000 2000 2000(1)
---------- ---------- -------------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Schroder Large
Capitalization Equity
Fund--Investor
Shares................. 10.48% 21.45% 17.29% 5.30% 20.18% 16.54%
Schroder Large
Capitalization Equity
Fund--Advisor Shares... 9.83 21.11(2) 16.97(2) 4.91 19.84(2) 16.22(2)
</TABLE>
1 From commencement of operations (February 16, 1994).
2 Performance for the Fund's Advisor Shares includes information for the
Fund's Investor Shares for the periods prior to the inception date of
Advisor Shares (January 19, 1999). 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 AND
DISTRIBUTIONS. 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.
--------------------------------------------------------------------------------
4
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder Small Capitalization Value Fund's return was 18.21% for
Investor Shares and 17.98% for Advisor Shares for the six months ended
April 30, 2000. The Russell 2000 Index's six-month return was 18.72%.
MARKET BACKGROUND/PORTFOLIO REVIEW
For the three months ended April 30, 2000, the Fund's Investor Shares
appreciated 14.69% (14.61% for Advisor Shares), compared with a 2.28% gain for
the Russell 2000.
The Fund's three- and six-month results illustrate the market turbulence
since fiscal year-end (October 31, 1999). A battle has been waged between growth
and value investing, and the so-called "new" economy and the "old" one. "New,
new industrials"--that is, recently public technology companies selling at huge
multiples of sales with no expected earnings for years to come--led the market
from November through early March, at which point leadership reversed sharply.
Less expensive, beaten-up "old economy" stocks roared back. From November
through February, the Fund lagged the Russell 2000 Index, which has been heavily
influenced by internet and biotechnology issues with no earnings and market
capitalizations that are significantly above our definitional limit of $1.5
billion. The Fund surged ahead of the Russell 2000 Index in March and April.
The battles between new and old, growth and value are not over, and equity
markets are likely to remain volatile in coming months. However, we believe that
March was an important turning point in the market struggle. It proved that
valuation counts. We believe that the market is transitioning from one that is
highly speculative and momentum-driven to a more rational, disciplined
investment style. This change may not happen quickly, and it certainly will not
happen smoothly. Yet we believe it is under way and that those advisors who
practice valuation disciplines will return to favor.
At April 30, the Fund portfolio's average price/earnings (P/E) ratio was
18.5 times calendar 2000 earnings estimates, with a projected three-year growth
rate of 18% and a price-to-sales ratio of 1.8 times. The Russell 2000 P/E at
quarter-end was 26.9 times 2000 estimates with 22% projected three-year growth
and a 14.1 times price-to-sales ratio. The S&P 500 traded at 25.9 times 2000
estimates with a 9% projected growth rate and a 2.3 times price-to-sales ratio.
One of the catalysts for recognizing the "pent up" value in the small- and
mid-cap value sectors is transaction activity. We are beginning to see a steady
trickle of leveraged buyout (LBO) announcements and a quickening pace of
acquisitions among these companies. Although our portfolio position in WESTPOINT
STEVENS, a leading textile manufacturer, depreciated over the last six months
due to a failed management LBO attempt, there was one buyout of a security held
in the Fund's portfolio in the first quarter of 2000.
In February, the Fund bought U.S. FOODSERVICE, the second-largest
institutional foodservice provider in the United States, at an average cost of
$13 per share. It was on the new low list, trading at 9.8 times calendar 2000
estimates with a five-year actual compound annual growth rate in earnings of
27.6%. Sysco Corp, the largest factor in institutional foodservice, was trading
at 26.2 times 2000 earnings estimates with a 12.5% compound annual growth rate
in earnings over the past five years. U.S. FOODSERVICE shares were punished,
because the company missed fourth-quarter 1999 revenue expectations by two
percentage points. While it achieved earnings estimates, it reported a 9% sales
gain rather than an 11% increase. The sell-off depressing the price of U.S.
FOODSERVICE occurred even though the third-largest participant servicing
national food accounts filed for bankruptcy that same day, and despite U.S.
FOODSERVICE'S announcement that sales were back on plan and would accelerate
throughout 2000, as they added accounts from their failing competitor. Impatient
investors fled the stock, which closed the previous day at $18 and ended down
32% the following day, the level at which we began buying. Valuation
rectification was quick in this instance. AHOLD, a Dutch supermarket company,
offered $26 per share in cash for U.S. FOODSERVICE in early March. Our portfolio
has many other excellent companies that are trading at deep discounts to the
large competitors in their industries and/or at large discounts to their
historic valuation parameters.
--------------------------------------------------------------------------------
5
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
--------------------------------------------------------------------------------
OUTLOOK
While a two-month period does not constitute a market trend, we believe that
March-April 2000 may prove to be a significant inflection point. Much is being
written about the "new" economy versus the "old" economy, but these labels tend
to miss the point, which is valuation. Emotion and speculation have driven stock
prices for fledgling technology companies with no earnings to unprecedented
levels. Seasoned companies, particularly small and mid-sized ones, with good
records have been ignored, and in the buying frenzy of the past two years, fewer
investors have been rewarded for "doing the math." Historically, in the
aftermath of speculative bubbles, value investing tends to excel as investors
return to fundamentals. We are increasingly confident that this is where the
current transitional market will lead.
We wish to take this opportunity to inform you that the Trustees have
approved changes to, or elimination of, certain fundamental investment policies
of the Fund. These changes are subject to shareholder approval.
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. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
6
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Harris 3.2%
Aptargroup 3.2
OM Group 3.1
Interim Services 3.1
Teleflex 3.0
National Data 3.0
Houghton Mifflin 3.0
Alpharma 2.9
Precision Castparts 2.8
Protective Life 2.8
----------
Total 30.1%
==========
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Banks & Finance 5.9%
Basic Industry 14.3
Business Services 5.7
Capital Goods 9.4
Consumer Cyclicals 9.4
Consumer Discretionary 6.4
Electronics 6.9
Energy 9.5
Financials 2.1
Health Care 4.7
Insurance 2.8
Technology 13.3
Technology -- Software 1.3
Telecommunications 2.5
Utilities 4.2
Cash Equivalents and Other Net Assets 1.6
----------
Total 100.0%
==========
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
AVERAGE ANNUAL AVERAGE ANNUAL
ONE YEAR FIVE YEARS RETURN FROM ONE YEAR FIVE YEARS RETURN FROM
ENDED ENDED INCEPTION TO ENDED ENDED INCEPTION TO
MARCH 31, MARCH 31, MARCH 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000(1) 2000 2000 2000(1)
---------- ------------- -------------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Schroder Small
Capitalization Value
Fund--Investor......... 34.58% 16.61% 12.89% 17.94% 15.43% 12.30%
Schroder Small
Capitalization Value
Fund--Advisor.......... 33.81 16.22(2) 12.53(2) 17.35 15.05(2) 11.95(2)
</TABLE>
1 From commencement of operations (February 16, 1994).
2 Performance for the Fund's Advisor Shares includes information for the
Fund's Investor Shares for the periods prior to the inception date of
Advisor Shares (September 26, 1997). 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 AND
DISTRIBUTIONS. 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.
--------------------------------------------------------------------------------
7
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder MidCap Value Fund's total return was 17.22% for Investor Shares
and 17.03% for Advisor Shares for the six months ended April 30, 2000. The
Fund's benchmark, the S&P MidCap 400 Index gained 21.25% for the same period.
MARKET BACKGROUND/PORTFOLIO REVIEW
For the three months ended April 30, 2000, the total return for the Fund's
Investor Shares was 16.01% (15.97% for Advisor Shares), compared with an 11.90%
gain for the S&P MidCap 400 Index. The Russell MidCap Value Index increased
2.22% and 7.86% over the six- and three-month periods, respectively.
The Fund's three- and six-month results illustrate the market turbulence
since fiscal year-end (October 31, 1999). A battle has been waged between growth
and value investing and the so-called "new" economy and the "old" one. "New, new
industrials"--that is, recently public technology companies selling at huge
multiples of sales with no expected earnings for years to come--led the market
from November through early March, at which point leadership reversed sharply.
Less expensive, beaten-up "old economy" stocks roared back. From November until
early March, the Fund lagged the S&P MidCap 400 Index, which was dominated by
expensive technology issues with market capitalizations well above our mid-cap
limit of $10 billion. The Fund gained significant relative performance against
the S&P MidCap 400 in March and April.
The battles between new and old, growth and value are not over, and equity
markets are likely to remain volatile in coming months. We believe that the
March reversal was an important event in the market struggle. It proved that
valuation counts. We believe that the market is transitioning from one that is
highly speculative and momentum-driven to a more rational, disciplined
investment style. This change may not happen quickly, and it certainly will not
happen smoothly. Yet we believe it has begun and that those advisors who
practice valuation disciplines will return to favor.
Over the last six months, the Fund's basic industries exposure has been
reduced. Despite strong forecasted earnings increases and cheap valuations,
holdings such as NUCOR and SMURFIT-STONE CONTAINER failed to reflect improving
conditions. We were able to re-deploy those funds into insurance companies and
asset gatherers, which were also selling at historic low valuations but where
their franchises might garner premiums over time.
One of the catalysts for recognizing the "pent up" value in the small- and
mid-cap value sectors is transaction activity. We are beginning to see a steady
trickle of leveraged buyout (LBO) announcements and a quickening pace of
acquisitions among these companies. The Fund held three companies that were
purchased in buyouts in the first quarter of 2000: U.S. FOODSERVICE, STERLING
SOFTWARE and SEAGATE. A fourth transaction involving RELIASTAR, the Fund's
largest holding at April 30, was recently announced. The Fund has many other
excellent companies that are trading at deep discounts to the large competitors
in their industries and/or at sizable discounts to their historic valuation
parameters.
OUTLOOK
While a two-month period does not constitute a market trend, we believe that
March-April 2000 may prove to be a significant inflection point. Much is being
written about the "new" economy versus the "old" economy, but these labels tend
to miss the point, which we believe is valuation. Emotion and speculation have
driven stock prices for fledgling technology companies with no earnings to
unprecedented levels. Seasoned companies, particularly small and mid-sized ones,
with good records have been ignored, and in the buying frenzy of the past
--------------------------------------------------------------------------------
8
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
--------------------------------------------------------------------------------
two years, fewer investors have been rewarded for "doing the math."
Historically, in the aftermath of speculative bubbles, value investing tends to
excel as investors return to fundamentals. We are increasingly confident that
this is where the current transitional market will lead.
We wish to take this opportunity to inform you that the Trustees have
approved changes to, or elimination of, certain fundamental investment policies
of the Funds. These changes are subject to shareholder approval.
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. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
9
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Reliastar Financial 4.1%
Avon Products 3.9
Boston Scientific 3.6
Arrow Electronics 3.6
BJ Services 3.5
McGraw-Hill Companies 3.4
B.F. Goodrich 3.3
MetLife 3.3
Diebold 3.3
Devon Energy 3.1
----------
Total 35.1%
==========
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Banks & Finance 5.7%
Basic Industries 6.1
Capital Goods 6.2
Consumer Cyclicals 6.4
Consumer Staples 9.8
Energy 10.0
Health Care 9.7
Insurance 13.1
Services 12.2
Technology 17.9
Telecommunications 1.9
Cash Equivalents and Other Net Assets 1.0
----------
Total 100.0%
==========
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
AVERAGE ANNUAL AVERAGE ANNUAL
ONE YEAR RETURN FROM ONE YEAR RETURN FROM
ENDED INCEPTION TO ENDED INCEPTION TO
MARCH 31, MARCH 31, APRIL 30, APRIL 30,
2000 2000(1) 2000 2000(1)
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Schroder MidCap Value
Fund--Investor Shares....... 17.99% 8.27% 8.91% 9.27%
Schroder MidCap Value
Fund--Advisor Shares........ 17.69 7.98(2) 8.63 8.99(2)
</TABLE>
1 From commencement of operations (August 1, 1997).
2 Performance for the Fund's Advisor Shares includes information for the
Fund's Investor Shares for the periods prior to the inception date of
Advisor Shares (October 23, 1998). 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 AND
DISTRIBUTIONS. 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.
--------------------------------------------------------------------------------
10
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder Investment Grade Income Fund's Investor Shares had a total
return of 0.92% for the six months ended April 30, 2000. The Lehman Brothers
Aggregate Bond Index returned 1.41% over the same period.
MARKET BACKGROUND
During the past six months, interest rates rose substantially, with the
exception of the 30-year Treasury sector. Fears about inflation continued,
driven by strong economic data, persistent domestic growth and a tightening
labor market. In response, the Federal Reserve raised the Federal funds rate
three times, each by 25 basis points, to 6.00%. Long-term interest rates
declined, reflecting continued pressure from the Treasury's buyback program.
In the last two months of 1999, corporate, mortgage and asset-backed markets
outperformed Government bonds, as investors took advantage of higher yields and
better perceived value. The U.S. Treasury announced that because of the growing
surplus, it would be reducing issuance as well as starting a buyback program in
early 2000.
By mid-January, the Treasury yield curve had inverted, with 30-year yields
lower than ten-year yields. This inversion created stress in the credit markets,
as investors felt uncomfortable with issues other than those guaranteed by the
Government.
While long Treasury yields declined dramatically since their peak in early
January, short-term Treasury yields actually continued to rise as the Federal
Reserve raised the Fed funds target. Furthermore, yields on private sector and
other instruments remained at or near their highs across the curve.
PORTFOLIO REVIEW
During the final two months of 1999, the Fund benefited from its exposure to
higher-yielding spread product, particularly in corporates. We emphasized
lower-rated investment-grade corporates, as they offered attractive total return
potential. The Fund benefited from its allocation to this sector.
In early January, the Fund began to shift the overweight in non-Treasury
holdings toward the highest-quality issues, largely Government agencies and
mortgages. We kept only a slight overweight in corporates, given increasing
pressure on corporate earnings. As the Treasury curve continued to invert and
the Federal Reserve continued to tighten, the Fund focused its Treasury exposure
on longer-dated maturities. Although the Fund benefited from good sector
allocation, several corporate bond issues significantly underperformed. The
tightening of liquidity in the fixed-income markets exacerbated the market
reaction to corporate securities, as many companies missed their earnings
estimates.
OUTLOOK
We believe that the Schroder Investment Grade Income Fund is well-positioned
to take advantage of the market opportunities that lie ahead. We expect to see
continued stock market and credit spread volatility, both of which should
cheapen corporate bonds further. Our long-held view remains that yields will
continue to rise (particularly in the short end) until the Federal Reserve has
slowed GDP growth to its target range of 3%-4%. We believe that the Federal
Reserve will continue to tighten through August and that large tax receipts will
propel Treasury repurchases beyond forecasts. As the yield curve inverts
further, we believe that swap spreads and credit
--------------------------------------------------------------------------------
11
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
--------------------------------------------------------------------------------
spreads in general will underperform. Spread widening should slow if and when
the Federal Reserve stops raising rates. At that point, we will begin to deploy
some of the liquidity we have built up in the Fund. We expect to focus on those
sectors and securities--particularly corporate, asset-backed and mortgage-backed
securities--that have been impacted the most by the current Fed tightening
cycle.
We wish to take this opportunity to inform you that the Trustees have
approved a new investment objective and changes to the principal investment
strategies of the Fund, and a change in the name of the Fund to "Schroder Total
Return Fixed Income Fund." In addition, the Trustees have approved changes to,
or elimination of, certain fundamental investment policies of the Fund. Each of
the changes is subject to shareholder approval.
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. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
12
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
U.S. Treasury Bond 8.875% 02/15/19 5.1%
Federal National Mortgage Association
6.000% 10/01/13 4.4
Federal National Mortgage Association
6.000% 12/01/28 3.8
Federal National Mortgage Association
6.000% 12/01/28 3.4
Federal Home Loan Mortgage Corporation
6.875% 01/15/05 3.1
U.S. Treasury Bond 9.250% 2/15/16 2.8
Federal National Mortgage Association
7.500% 01/01/30 2.5
Federal National Mortgage Association
7.125% 01/15/30 2.4
Government National Mortgage Association
7.500% 11/15/29 2.4
Residential Accredit Loans 1999-QS4 A1
6.250% 03/25/14 2.3
----------
Total 32.2%
==========
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Asset-Backed Securities 8.1%
Corporate Bonds 26.1
Mortgage-Backed Securities 35.9
U.S. Treasury Issues 21.4
Cash Equivalents and Other Net Assets 8.5
----------
Total 100.0%
==========
</TABLE>
CREDIT QUALITY
<TABLE>
<CAPTION>
% OF MARKET VALUE
RATING OF INVESTMENTS
<S> <C>
---------------------------------------------------------------------
U.S. Treasury Securities 13.2%
U.S. Government Agencies/ Mortgage-Backed
Securities 40.7
AAA 19.7
AA 2.4
A 9.0
Baa 15.0
-----------
Total 100.0%
===========
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
AVERAGE ANNUAL AVERAGE ANNUAL
ONE YEAR FIVE YEARS RETURN FROM ONE YEAR FIVE YEARS RETURN FROM
ENDED ENDED INCEPTION TO ENDED ENDED INCEPTION TO
MARCH 31, MARCH 31, MARCH 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000(1) 2000 2000 2000(1)
---------- ---------- -------------- ------------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Schroder Investment Grade
Income Fund--Investor
Shares................. 1.53% 6.17% 5.10% -0.05% 5.60% 4.81%
</TABLE>
1 From commencement of operations (February 22, 1994).
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. 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.
--------------------------------------------------------------------------------
13
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
--------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF APRIL 30, 2000)
PERFORMANCE
The Schroder Short-Term Investment Fund's Investor Shares had a total return
of 2.30% for the six months ended April 30, 2000. The 90-day U.S. Treasury Bill
returned 2.74% over the same period. While the Fund's higher-yielding securities
contributed to performance, given the rising interest rate environment, its
longer maturity structure relative to the 90-day U.S. Treasury Bill detracted
from performance.
MARKET BACKGROUND
During the past six months, short-term interest rates rose substantially.
Economic strength and a tightening labor market caused the Federal Reserve to
raise the Federal funds rate three times, each by 25 basis points, to 6.00%.
Rising commodity prices through March 2000 resulted in heightened inflation
fears, which, in turn, led to a flatter yield curve.
In the last two months of 1999, non-Treasury securities outperformed
Government bonds as investors took advantage of higher yields that compensated
them for owning assets over the turn of the year. After Y2K fears subsided in
early 2000, short-term Treasury yields continued to rise as the Federal Reserve
raised the Fed funds target. Furthermore, yields on credit product remained at
or near their highs across the curve.
PORTFOLIO REVIEW
Throughout the past six months, the Fund continued to hold asset-backed and
mortgage-backed securities, in light of their generous yield spreads over cash
investments. However, as Y2K fears abated, yield spreads on non-Treasury
securities also diminished. Thus, the Fund did not add to its holdings of
longer-maturity spread product. Rather, we continued to emphasize safety by
choosing money market instruments with the highest credit ratings.
On May 23, 2000, the Trustees voted to close and liquidate the Fund.
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. CERTAIN SECURITIES DESCRIBED IN THIS REPORT MAY
NO LONGER BE HELD BY THE FUND AND THEREFORE NO LONGER APPEAR IN THE SCHEDULE OF
INVESTMENTS AS OF APRIL 30, 2000.
--------------------------------------------------------------------------------
14
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
--------------------------------------------------------------------------------
PORTFOLIO CHARACTERISTICS AS OF APRIL 30, 2000
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
SECURITY % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Green Tree Home Improvement Loan Trust 1998-B HIA4
6.390% 02/18/25 7.2%
Green Tree Financial 1996-10 A4 6.420% 11/15/28 6.0
Federal National Mortgage Association
7.500% 12/01/01 5.9
General Motors Acceptance Medium Term Note
6.375% 7/31/00 5.7
Green Tree Financial 1992-2 A4 8.150% 01/15/18 5.6
Contimortgage Home Equity Loan Trust 1997-4 A5
6.440% 12/15/12 5.0
Federal National Mortgage Association 1992-31 M
7.750% 03/25/22 4.7
John Deere Capital 5.980% 05/03/00 4.6
General Electric Capital 5.980% 05/16/00 4.6
Associates Corporation of North America
6.000% 05/16/00 4.6
----------
Total 53.9%
==========
</TABLE>
INVESTMENT BY SECTOR
<TABLE>
<CAPTION>
SECTOR % OF NET ASSETS
<S> <C>
-------------------------------------------------------------------
Asset-Backed Securities 41.4%
Mortgage-Backed Securities 21.5
Corporate Bonds 5.7
Cash Equivalents and Other Net Assets 31.4
----------
Total 100.0%
==========
</TABLE>
CREDIT QUALITY
<TABLE>
<CAPTION>
% OF MARKET VALUE
RATING OF INVESTMENTS
<S> <C>
---------------------------------------------------------------------
U.S. Government Issues 23.2%
AAA or A1/P1 71.1
A 5.7
-----------
Total 100.0%
===========
</TABLE>
PERFORMANCE INFORMATION
<TABLE>
<CAPTION>
AVERAGE ANNUAL AVERAGE ANNUAL
ONE YEAR FIVE YEARS RETURN FROM ONE YEAR FIVE YEARS RETURN FROM
ENDED ENDED INCEPTION TO ENDED ENDED INCEPTION TO
MARCH 31, MARCH 31, MARCH 31, APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000(1) 2000 2000 2000(1)
---------- ---------- -------------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Schroder Short-Term
Investment
Fund--Investor
Shares................. 4.07% 4.65% 4.34% 4.17% 4.67% 4.33%
</TABLE>
1 From commencement of operations (January 11, 1994).
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL INCOME DIVIDENDS AND
DISTRIBUTIONS. 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.
--------------------------------------------------------------------------------
15
<PAGE>
--------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
COMMON STOCKS - 97.8%
BASIC INDUSTRIES - 2.6%
10,900 Alcoa $ 707,138
20,200 International Paper 742,350
-----------
1,449,488
-----------
CAPITAL GOODS - 8.0%
20,500 Emerson Electric 1,124,938
13,100 General Electric 2,059,975
22,500 Honeywell International 1,260,000
-----------
4,444,913
-----------
COMPUTER HARDWARE - 20.2%
28,000 Cisco Systems (1) 1,941,187
10,900 EMC (1) 1,514,419
20,600 Intel 2,612,337
23,700 Sun Microsystems (1) 2,178,919
16,300 Tellabs (1) 893,444
12,600 Texas Instruments 2,052,225
-----------
11,192,531
-----------
COMPUTER SERVICES - 2.0%
16,200 Electronic Data Systems 1,113,750
-----------
COMPUTER SOFTWARE - 8.7%
6,800 Citrix Systems (1) 415,225
26,600 Microsoft (1) 1,855,350
31,600 Oracle (1) 2,526,025
-----------
4,796,600
-----------
CONSUMER CYCLICALS - 6.1%
24,100 Costco Wholesale (1) 1,302,906
19,800 Lowe's Companies 980,100
19,400 Wal-Mart Stores 1,074,275
-----------
3,357,281
-----------
CONSUMER STAPLES - 8.3%
17,700 Anheuser Busch 1,248,956
18,900 Colgate Palmolive 1,079,663
18,300 Time Warner 1,645,856
14,200 Walt Disney 615,038
-----------
4,589,513
-----------
ENERGY - 7.1%
11,800 Chevron 1,004,475
52,600 Conoco $ 1,252,538
21,600 Exxon Mobil 1,678,050
<CAPTION>
SHARES VALUE
---------- -----------
<C> <S> <C>
-----------
3,935,063
-----------
FINANCIAL SERVICES - 13.3%
13,507 American International Group 1,481,549
25,500 Capital One Financial 1,115,625
27,200 Citigroup 1,616,700
26,200 Federal National Mortgage Association 1,580,188
43,100 FleetBoston Financial 1,527,356
-----------
7,321,418
-----------
HEALTH CARE - 10.1%
27,100 Bristol-Myers Squibb 1,421,056
26,000 Medtronic 1,350,375
28,600 Schering-Plough 1,152,937
14,700 Warner Lambert 1,673,044
-----------
5,597,412
-----------
TELECOMMUNICATIONS - 9.5%
27,600 AT&T Wireless Group (1) 878,025
28,400 GTE 1,924,100
27,200 MCI WorldCom (1) 1,235,900
17,000 U S WEST 1,210,187
-----------
5,248,212
-----------
UTILITIES - 1.9%
25,100 PECO Energy 1,046,356
-----------
Total Common Stocks
(Cost $49,728,699) 54,092,537
-----------
SHORT TERM INVESTMENT - 3.9%
2,154,713 SSgA U.S. Government Money
Market Fund 5.677% (2)
(Cost $2,154,713) 2,154,713
-----------
Total Investments
(Cost $51,883,412) - 101.7% 56,247,250
Liabilities in Excess of Other
Assets - (1.7%) (944,205)
-----------
Total Net Assets - 100% $55,303,045
===========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
16
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
COMMON STOCKS - 98.4%
BANKS & FINANCE - 5.9%
32,900 Hudson United Bancorp $ 742,306
30,500 Imperial Bancorp 598,563
11,200 Neuberger Berman 368,200
58,000 Waddell & Reed Financial 1,544,250
-----------
3,253,319
-----------
BASIC INDUSTRIES - 14.3%
62,000 Aptargroup 1,767,000
33,800 Arch Chemicals 667,550
35,700 Belden 1,059,844
11,200 Millipore 802,900
30,000 Minerals Technologies 1,387,500
37,000 OM Group 1,702,000
133,900 Titanium Metals 560,706
-----------
7,947,500
-----------
BUSINESS SERVICES - 5.7%
64,000 ACNielson (1) 1,476,000
99,300 Interim Services (1) 1,700,512
-----------
3,176,512
-----------
CAPITAL GOODS - 9.4%
130,000 AGCO 1,543,750
27,700 Gerber Scientific 384,338
37,900 Precision Castparts 1,582,325
49,000 Teleflex 1,693,562
-----------
5,203,975
-----------
CONSUMER CYCLICALS - 9.4%
40,000 Houghton Mifflin 1,662,500
83,800 InterTan (1) 1,157,487
150,000 Sinclair Broadcast Group (1) 1,171,875
66,200 WestPoint Stevens 1,241,250
-----------
5,233,112
-----------
CONSUMER DISCRETIONARY - 6.4%
66,800 Dial 931,025
57,000 Polaroid 1,150,687
41,000 Scotts (1) 1,481,125
-----------
3,562,837
-----------
ELECTRONICS - 6.9%
26,700 Benchmark Electronics (1) 1,073,006
28,800 International Rectifier (1) 1,414,800
34,200 Xircom (1) 1,348,763
-----------
3,836,569
-----------
<CAPTION>
SHARES VALUE
----------- -----------
<C> <S> <C>
ENERGY - 9.5%
22,000 BJ Services (1) $ 1,545,500
11,600 Cal Dive International (1) 577,100
85,000 Forest Oil (1) 950,938
3,400 Grant Prideco (1) 65,450
93,000 Plains Resources (1) 1,319,437
165,900 Titan Exploration (1) 829,500
-----------
5,287,925
-----------
FINANCIALS - 2.1%
47,800 Cullen/Frost Bankers 1,180,063
-----------
HEALTH CARE - 4.7%
42,000 Alpharma 1,622,250
22,600 Barr Laboratories (1) 976,038
-----------
2,598,288
-----------
INSURANCE - 2.8%
66,000 Protective Life 1,571,625
-----------
TECHNOLOGY - 13.3%
55,000 Harris 1,777,187
79,300 Mentor Graphics (1) 1,040,813
60,000 National Data 1,665,000
110,000 Storage Technology (1) 1,430,000
26,000 Tektronix 1,504,750
-----------
7,417,750
-----------
TECHNOLOGY-SOFTWARE - 1.3%
11,300 Symantec (1) 705,544
-----------
TELECOMMUNICATIONS - 2.5%
16,000 Plantronics (1) 1,416,000
-----------
UTILITIES - 4.2%
54,500 Philadelphia Suburban 1,308,000
60,000 Southern Union 1,031,250
-----------
2,339,250
-----------
Total Common Stocks
(Cost $47,407,487) 54,730,269
-----------
SHORT TERM INVESTMENT - 1.9%
1,030,130 SSgA U.S. Government Money Market Fund
5.677% (2)
(Cost $1,030,130) 1,030,130
-----------
Total Investments
(Cost $48,437,617) - 100.3% 55,760,399
Liabilities in Excess of
Other Assets - (0.3%) (159,162)
-----------
Total Net Assets - 100% $55,601,237
===========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
17
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- ----------
<C> <S> <C>
COMMON STOCKS - 99.0%
BANKS & FINANCE - 5.7%
11,900 Charter One Financial $ 241,719
7,600 Franklin Resources 245,100
----------
486,819
----------
BASIC INDUSTRIES - 6.1%
6,400 Allegheny Technologies 154,800
8,800 Cabot 237,600
1,800 Millipore 129,038
----------
521,438
----------
CAPITAL GOODS - 6.2%
9,000 B. F. Goodrich 286,875
6,000 Deere & Company 242,250
----------
529,125
----------
CONSUMER CYCLICALS - 6.4%
5,600 McGraw-Hill Companies 294,000
5,800 NIKE 251,938
----------
545,938
----------
CONSUMER STAPLES - 9.8%
8,000 Avon Products 332,000
7,200 Clorox 264,600
7,100 International Flavors & Fragrances 244,506
----------
841,106
----------
ENERGY - 10.0%
4,300 BJ Services (1) 302,075
5,600 Devon Energy 269,850
4,800 Grant Prideco (1) 92,400
4,800 Weatherford International 195,000
----------
859,325
----------
HEALTH CARE - 9.7%
11,700 Boston Scientific (1) 310,050
5,300 Genzyme (1) 258,706
5,800 Watson Pharmaceuticals (1) 260,638
----------
829,394
----------
INSURANCE - 13.1%
3,900 Chubb 248,138
<CAPTION>
SHARES VALUE
----------- ----------
<C> <S> <C>
17,000 MetLife (1) $ 281,562
8,600 Nationwide Financial Services 239,725
8,200 Reliastar Financial 353,112
----------
1,122,537
----------
SERVICES - 12.2%
9,700 Diebold 280,087
11,100 Hearst-Argyle Television (1) 236,569
7,600 Manpower 268,375
10,400 Viad 263,900
----------
1,048,931
----------
TECHNOLOGY - 17.9%
7,000 Arrow Electronics (1) 306,687
12,000 Ceridian (1) 260,250
8,200 Harris 264,963
26,100 Parametric Technology (1) 212,878
5,000 SCI Systems (1) 266,250
4,500 Seagate Technology (1) 228,656
----------
1,539,684
----------
TELECOMMUNICATIONS - 1.9%
6,600 CenturyTel 161,700
----------
Total Common Stocks
(Cost $7,192,904) 8,485,997
----------
SHORT TERM INVESTMENT - 1.6%
136,345 SSgA U.S. Government Money Market Fund
5.677% (2)
(Cost $136,345) 136,345
----------
Total Investments
(Cost $7,329,249) - 100.6% 8,622,342
----------
Liabilities in Excess of
Other Assets - (0.6%) (49,762)
----------
Total Net Assets - 100% $8,572,580
==========
</TABLE>
------------------
(1) Denotes non-income producing security.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
18
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
ASSET-BACKED SECURITIES - 8.1%
$ 375,140 Commercial Resecuritization Trust
Series 1999-1 Class A
6.740% 01/27/2009 $ 354,282
Contimortgage Home Equity Loan Trust
520,000 Series 1997-4 Class A5
6.440% 12/15/2012 508,051
400,000 Series 1996-3 Class A6
7.830% 02/15/2016 399,276
276,206 Ford Credit Auto Owner Trust
Series 1998-B Class A3
5.850% 10/15/2001 275,610
376,263 Green Tree Financial
Series 1992-2 Class A4
8.150% 01/15/2018 379,477
-----------
Total Asset-Backed Securities
(Cost $1,983,580) 1,916,696
-----------
U.S. GOVERNMENT SECURITIES - 21.4%
FEDERAL AGENCY ISSUES - 8.4%
FHLMC
450,000 6.625% 09/15/2009 429,439
750,000 6.875% 01/15/2005 739,014
FNMA
125,000 7.125% 02/15/2005 124,383
560,000 7.125% 01/15/2030 554,491
125,000 7.250% 01/15/2010 124,681
-----------
1,972,008
-----------
TREASURY ISSUES - 13.0%
United States Treasury Bonds
120,000 6.125% 08/15/2029 120,231
135,000 7.875% 02/15/2021 159,964
255,000 8.750% 08/15/2020 326,652
945,000 8.875% 02/15/2019 1,210,682
505,000 9.250% 02/15/2016 650,792
United States Treasury Notes
100,000 5.875% 11/15/2004 97,383
515,000 6.000% 08/15/2009 503,846
-----------
3,069,550
-----------
Total U.S. Government Securities
(Cost $5,017,550) 5,041,558
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES - 35.9%
COLLATERALIZED MORTGAGE OBLIGATIONS - 8.5%
$19,741,351 Bear Stearns Commercial Mortgage
Securities (1)
Series 1999-WF2 Class X
0.4307% 05/15/2019 $ 388,905
500,000 FHLMC
Series 1543 Class PJ
7.000% 10/15/2022 479,582
FNMA
205,000 Series 1999-32 Class PK
6.000% 02/25/2028 185,589
402,117 Series 1997-1 Class B
6.500% 02/18/2004 392,890
582,807 Residential Accredit Loans
Series 1999-QS4 Class A1
6.250% 03/25/2014 547,726
-----------
1,994,692
-----------
MORTGAGE PASS-THROUGH SECURITIES - 27.4%
FHLMC
531,312 6.000% 05/01/2029 482,332
188,155 8.000% 01/01/2026 188,272
FNMA
1,112,153 6.000% 10/01/2013 1,042,295
886,547 6.000% 12/01/2028 803,157
985,876 6.000% 12/01/2028 893,142
297,119 7.000% 12/01/2010 290,341
391,864 7.000% 05/01/2024 375,087
406,059 7.000% 05/01/2026 388,674
593,755 7.500% 01/01/2030 581,323
364,906 10.000% 12/01/2020 390,108
GNMA
317,753 6.500% 05/15/2009 305,638
562,523 7.500% 11/15/2029 553,558
158,975 8.000% 06/15/2026 159,472
-----------
6,453,399
-----------
Total Mortgage-Backed Securities (Cost
$8,669,226) 8,448,091
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
19
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
CORPORATE BONDS - 26.1%
INDUSTRIALS - 6.3%
$ 285,000 Comdisco
6.000% 01/30/2002 $ 275,637
280,000 Ford Motor
7.450% 07/16/2031 264,500
150,000 Hilfiger Tommy USA
6.500% 06/01/2003 120,000
275,000 IMC Global
7.400% 11/01/2002 271,090
500,000 R.J. Reynolds Tobacco Holdings
7.375% 05/15/2003 436,879
115,000 Saks
7.000% 07/15/2004 106,589
-----------
1,474,695
-----------
MEDIA/TELECOMMUNICATIONS - 1.3%
115,000 Sprint Capital
6.875% 11/15/2028 99,748
255,000 Time Warner
6.625% 05/15/2029 212,602
-----------
312,350
-----------
OIL - 1.1%
280,000 Conoco
6.950% 04/15/2029 251,920
-----------
REITS, INSURANCE, FINANCE & BANKING - 9.3%
285,000 American Financial Group
7.125% 04/15/2009 254,374
260,000 Bank of America
7.800% 02/15/2010 259,846
190,000 Capital One Financial
7.250% 05/01/2006 177,673
400,000 Conseco
6.800% 06/15/2005 234,000
200,000 Duke Realty
6.800% 02/12/2009 182,689
145,000 EOP Operating
6.800% 01/15/2009 131,770
175,000 Ford Motor Credit
7.375% 10/28/2009 169,622
255,000 General Motors Acceptance
7.750% 01/19/2010 251,378
255,000 Household Finance
5.875% 02/01/2009 220,618
330,000 Presidental Life
7.875% 02/15/2009 304,529
-----------
2,186,499
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<C> <S> <C>
TRANSPORTATION - 2.5%
$ 310,000 Continental Airlines
Series 2000-1 Class A1
8.048% 11/01/2020 $ 310,295
300,000 Delta Air Lines
6.650% 03/15/2004 281,242
-----------
591,537
-----------
YANKEE BONDS - 5.6%
145,000 AB Spintab (1)
7.500% 08/14/2049 134,111
375,000 Credit Suisse First Boston (1)
7.900% 05/01/2049 350,056
450,000 Merita Bank (1)
7.150% 12/29/2049 435,081
260,000 Republic of Korea
8.875% 04/15/2008 268,775
135,000 United Mexican States
9.875% 02/01/2010 139,388
-----------
1,327,411
-----------
Total Corporate Bonds
(Cost $6,582,713) 6,144,412
-----------
<CAPTION>
SHARES
-----------
<C> <S> <C>
SHORT-TERM INVESTMENTS - 7.9%
803,739 SSgA Money Market Fund 5.766% (2) 803,739
1,055,806 SSgA U.S. Government Money Market Fund
5.677% (2) 1,055,806
-----------
Total Short-Term Investments
(Cost $1,859,545) 1,859,545
-----------
Total Investments
(Cost $24,112,614) - 99.4% 23,410,302
Other Assets Less
Liabilities - 0.6% 131,791
-----------
Total Net Assets - 100% $23,542,093
===========
</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, 2000, these securities aggregated
$1,308,153 or 5.6% of the assets of the Fund.
(2) Interest rate shown is 7-day yield as of April 30, 2000.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
20
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
--------------------------------------------------------------------------------
Schedule of Investments
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
----------- -----------
<C> <S> <C>
Asset-Backed Securities - 41.4%
Contimortgage Home Equity Loan Trust
$ 760,629 Series 1998-2 Class A3
6.130% 03/15/2013 $ 754,033
1,000,000 Series 1997-4 Class A5
6.440% 12/15/2012 977,020
310,000 Series 1996-3 Class A6
7.830% 07/15/2016 309,439
753,708 FNMA
Series 1998-65 Class A1
5.530% 09/16/2028 752,295
684,512 Ford Credit Auto Owner Trust
Series 1998-B Class A3
5.850% 10/15/2001 683,033
26,192 General Motors Acceptance
Series 1997-A Class A
6.500% 04/15/2002 26,193
Green Tree Financial
881,126 Series 1993-3 Class A5
5.750% 10/15/2018 877,620
1,450,000 Series 1998-B Class HIA4
6.390% 02/18/2025 1,417,520
1,187,750 Series 1996-10 Class A4
6.420% 11/15/2028 1,180,956
1,092,377 Series 1992-2 Class A4
8.150% 01/15/2018 1,101,708
37,714 Money Store Auto Trust
Series 1997-4 Class A2 6.350%
03/20/2004 37,616
-----------
Total Asset-Backed Securities
(Cost $8,262,700) 8,117,433
-----------
Mortgage-Backed Securities - 21.5%
Collateralized Mortgage Obligations - 10.8%
19,444,325 Bear Stearns Commercial Mortgage
Securities (1)
Series 1999-WF2 Class X
0.43074% 05/15/2019 383,053
FNMA
810,691 Series 1992-94 Class G
7.000% 10/25/2005 807,324
931,000 Series 1992-31 Class M
7.750% 03/25/2022 920,167
-----------
2,110,544
-----------
Mortgage Pass-Through Securities - 10.7%
FNMA
1,166,582 7.500% 12/01/2001 1,160,384
481,384 10.000% 12/01/2020 514,629
<CAPTION>
Principal
Amount Value
----------- -----------
<C> <S> <C>
$ 425,828 GNMA
8.500% 04/25/2025 $ 429,820
-----------
2,104,833
-----------
Total Mortgage-Backed Securities
(Cost $4,360,453) 4,215,377
-----------
Corporate Bond - 5.7%
1,125,000 General Motors Acceptance MTN (2)
6.375% 07/31/2000
(Cost $1,122,255) 1,124,774
-----------
Commercial Paper - 22.9%
900,000 American Express
6.010% 05/18/2000 897,454
900,000 Associates Corporation of North America
6.000% 05/16/2000 897,758
900,000 Ford Motor Credit
6.000% 05/17/2000 897,608
900,000 General Electric Capital
5.980% 05/16/2000 897,765
900,000 John Deere Capital
5.980% 05/03/2000 899,701
-----------
Total Commercial Paper
(Cost $4,490,286) 4,490,286
-----------
<CAPTION>
Shares
-----------
<C> <S> <C>
Short-Term Investments - 9.2%
920,207 SSgA Money Market
Fund 5.766% (3) 920,207
892,852 SSgA U.S. Government Money Market Fund
5.677% (3) 892,852
-----------
Total Short-Term Investments
(Cost $1,813,059) 1,813,059
-----------
Total Investments
(Cost $20,048,753) - 100.7% 19,760,929
-----------
Liabilities in Excess
of Other Assets - (0.7%) (143,546)
-----------
Total Net Assets - 100% $19,617,383
===========
</TABLE>
------------------
(1) Pursuant to Rule 144A of the Securities Act of 1933, this security may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At April 30, 2000, this security aggregated $383,053
or 2.0% of the assets of the Fund.
(2) Floating rate security. The coupon rate shown represents the rate at the
period end.
(3) Interest rate shown is 7-day yield as of April 30, 2000.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
21
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Assets and Liabilities
April 30, 2000 (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 $56,247,250 $55,760,399 $ 8,622,342 $23,410,302 $19,760,929
Dividends receivable 35,050 6,247 6,167 0 0
Interest receivable 5,963 5,830 2,207 289,681 88,073
Receivable for
securities sold 0 540,918 0 129,385 0
Receivable for Trust
shares sold 5,242 0 4,068 2,925 0
Deferred organizational
costs 0 0 9,599 0 0
Prepaid expenses 2,180 12,707 0 0 0
Due from Investment
Advisor--Note 3 1,696 1,941 10,390 0 5,432
----------- ----------- ----------- ----------- -----------
Total Assets 56,297,381 56,328,042 8,654,773 23,832,293 19,854,434
----------- ----------- ----------- ----------- -----------
Liabilities
Payable for securities
purchased 843,729 574,026 0 229,899 0
Payable for Trust
shares redeemed 48,924 41,393 0 0 160,452
Advisory fees
payable--Note 3 22,925 43,564 8,079 0 6,155
Accounts payable and
accrued expenses 78,758 67,822 74,114 60,301 70,444
----------- ----------- ----------- ----------- -----------
Total Liabilities 994,336 726,805 82,193 290,200 237,051
----------- ----------- ----------- ----------- -----------
Net Assets $55,303,045 $55,601,237 $ 8,572,580 $23,542,093 $19,617,383
=========== =========== =========== =========== ===========
Net Assets
Capital paid-in $42,970,263 $37,293,477 $ 6,788,122 $25,392,754 $20,193,858
Undistributed
(distributions in
excess of) net
investment income 3,700 (347,113) 2,430 (8,024) 9,205
Accumulated net
realized gain (loss)
on investments 7,965,244 11,332,091 488,935 (1,140,325) (297,856)
Net unrealized
appreciation
(depreciation) of
investments 4,363,838 7,322,782 1,293,093 (702,312) (287,824)
----------- ----------- ----------- ----------- -----------
Net Assets $55,303,045 $55,601,237 $ 8,572,580 $23,542,093 $19,617,383
=========== =========== =========== =========== ===========
Investor Shares:
Net Assets $55,292,434 $55,413,376 $ 8,568,227 $23,542,093 $19,617,383
Net asset value,
offering and
redemption price per
share $ 13.59 $ 14.84 $ 12.75 $ 8.84 $ 9.68
Total shares
outstanding at
end of period 4,067,645 3,733,999 671,877 2,662,208 2,026,684
Advisor Shares:
Net Assets--Note 8 $ 10,611 $ 187,861 $ 4,353 $ 0 N/A(1)
Net asset value,
offering and
redemption price per
share $ 13.55 $ 14.68 $ 12.73 $ 0.00 N/A(1)
Total shares
outstanding at
end of period 783 12,798 342 0 N/A(1)
Cost of securities $51,883,412 $48,437,617 $ 7,329,249 $24,112,614 $20,048,753
</TABLE>
------------------
(1) See Note 1.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
22
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Operations
For the Six Months Ended April 30, 2000 (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 $ 280,347 $ 244,519 $ 59,755 $ 0 $ 0
Interest income 34,808 49,402 13,455 870,047 719,193
---------------- ---------------- --------------- -------------- --------------
Total Income 315,155 293,921 73,210 870,047 719,193
---------------- ---------------- --------------- -------------- --------------
Expenses
Investment advisory
fees--Note 3 227,893 277,830 46,315 59,043 42,456
Shareholder servicing
fees--Note 4 49 163 5 0 0
Administrative
fees--Note 3 30,766 29,572 5,203 11,954 10,756
Custodian fees 30,406 31,600 23,056 24,479 22,904
Audit fees 9,693 10,302 9,693 9,966 9,784
Legal fees 12,058 12,068 9,649 10,963 10,634
Printing expenses 4,984 4,987 4,984 4,984 4,984
Trustees fees--Note 5 5,711 5,246 887 1,994 2,192
Transfer agent fees 32,094 37,425 21,876 18,438 21,878
Organizational expenses 0 0 2,823 0 0
Registration fees 10,964 10,977 11,462 8,473 8,472
Insurance 2,592 2,892 438 1,169 853
Other 1,612 1,557 340 713 748
---------------- ---------------- --------------- -------------- --------------
Total Expenses 368,822 424,619 136,731 152,176 135,661
Expenses borne by
Investment
Adviser--Note 3 (12,558) (12,714) (67,253) 0 (26,336)
Expenses waived by
Investment
Adviser--Note 3 (74,992) 0 0 (59,043) 0
---------------- ---------------- --------------- -------------- --------------
Net Expenses 281,272 411,905 69,478 93,133 109,325
---------------- ---------------- --------------- -------------- --------------
Net Investment
Income (Loss) 33,883 (117,984) 3,732 776,914 609,868
---------------- ---------------- --------------- -------------- --------------
Realized and Unrealized
Gain (Loss) on
Investments
Net realized gain
(loss) on investments 7,965,769 11,396,565 867,944 (355,538) (85,404)
Change in net
unrealized
(depreciation)
appreciation of
investments (7,768,482) (1,172,142) 704,212 (234,228) (71,952)
---------------- ---------------- --------------- -------------- --------------
Net Gain (Loss) 197,287 10,224,423 1,572,156 (589,766) (157,356)
---------------- ---------------- --------------- -------------- --------------
Net Increase In Net
Assets
Resulting from
Operations $ 231,170 $ 10,106,439 $ 1,575,888 $ 187,148 $ 452,512
================ ================ =============== ============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
23
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Large Capitalization Equity Fund
--------------------------------------------
Six Months Ended Year Ended
April 30, 2000 (Unaudited) October 31, 1999
-------------------------- ----------------
<S> <C> <C>
Increase (Decrease) in
Net Assets
From operations:
Net investment income
(loss) $ 33,883 $ 155,345
Net realized gain
(loss) on
investments 7,965,769 5,187,928
Change in net
unrealized
appreciation
(depreciation) on
investments (7,768,482) 8,769,491
------------ -----------
Net increase (decrease)
in net assets
resulting from
operations 231,170 14,112,764
------------ -----------
Net equalization
credits (debits) 0 0
Dividends and
distributions to
Investor
Shareholders:
From net investment
income (107,089) (180,868)
From net realized
capital gains (4,536,118) (13,211,192)
Dividends and
distributions to
Advisor Shareholders:
From net investment
income 0 0
From net realized
capital gains (3,628) 0
------------ -----------
(4,646,835) (13,392,060)
------------ -----------
Investor Share
Transactions:
Sales of shares 30,059,022 14,839,763
Reinvestment of
distributions 4,630,639 13,358,523
Redemptions of shares (45,156,596) (19,441,158)
------------ -----------
Total increase
(decrease) from
Investor share
transactions (10,466,935) 8,757,128
------------ -----------
Advisor Share
Transactions:
Sales of shares 0 48,660
Reinvestment of
distributions 2,837 0
Redemptions of shares (38,131) 0
------------ -----------
Total increase
(decrease) from
Advisor share
transactions (35,294) 48,660
------------ -----------
Net Assets
Beginning of period 70,220,939 60,694,447
------------ -----------
End of period $ 55,303,045 $70,220,939
============ ===========
Including Undistributed
(distributions in
excess of) net
investment income $ 3,700 $ 76,906
============ ===========
Other Information
Investor Share
Transactions:
Sales of shares 2,087,864 1,065,957
Reinvestment of
distributions 334,584 1,029,955
Redemption of shares (3,168,790) (1,395,856)
------------ -----------
Net increase (decrease)
in Investor shares (746,342) 700,056
============ ===========
Advisor Share
Transactions:
Sales of shares 0 3,592
Reinvestment of
distributions 205 0
Redemption of shares (3,014) 0
------------ -----------
Net increase (decrease)
in Advisor shares (2,809) 3,592
============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
24
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Small Capitalization Value Fund
--------------------------------------------
Six Months Ended Year Ended
April 30, 2000 (Unaudited) October 31, 1999
-------------------------- ----------------
<S> <C> <C>
Increase (Decrease) in
Net Assets
From operations:
Net investment income
(loss) $ (117,984) $ (355,876)
Net realized gain
(loss) on
investments 11,396,565 3,167,389
Change in net
unrealized
appreciation
(depreciation) on
investments (1,172,142) (793,982)
----------- ------------
Net increase (decrease)
in net assets
resulting from
operations 10,106,439 2,017,531
----------- ------------
Net equalization
credits (debits) 0 0
Dividends and
distributions to
Investor
Shareholders:
From net investment
income 0 0
From net realized
capital gains (2,491,082) (1,240,172)
Dividends and
distributions to
Advisor Shareholders:
From net investment
income 0 0
From net realized
capital gains (5,686) (1,465)
----------- ------------
(2,496,768) (1,241,637)
----------- ------------
Investor Share
Transactions:
Sales of shares 20,342,335 20,003,670
Reinvestment of
distributions 2,463,098 1,228,923
Redemptions of shares (35,188,309) (29,612,698)
----------- ------------
Total increase
(decrease) from
Investor share
transactions (12,382,876) (8,380,105)
----------- ------------
Advisor Share
Transactions:
Sales of shares 68,188 136,082
Reinvestment of
distributions 5,686 1,442
Redemptions of shares (34,478) (60,875)
----------- ------------
Total increase
(decrease) from
Advisor share
transactions 39,396 76,649
----------- ------------
Net Assets
Beginning of period 60,335,046 67,862,608
----------- ------------
End of period $55,601,237 $ 60,335,046
=========== ============
Including Undistributed
(distributions in
excess of) net
investment income $ (347,113) $ (229,129)
=========== ============
Other Information
Investor Share
Transactions:
Sales of shares 1,533,393 1,514,759
Reinvestment of
distributions 193,640 94,824
Redemption of shares (2,587,578) (2,267,904)
----------- ------------
Net increase (decrease)
in Investor shares (860,545) (658,321)
=========== ============
Advisor Share
Transactions:
Sales of shares 5,058 10,122
Reinvestment of
distributions 452 112
Redemption of shares (2,616) (4,143)
----------- ------------
Net increase (decrease)
in Advisor shares 2,894 6,091
=========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
25
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
MidCap Value Fund
--------------------------------------------
Six Months Ended Year Ended
April 30, 2000 (Unaudited) October 31, 1999
-------------------------- ----------------
<S> <C> <C>
Increase (Decrease) in
Net Assets
From operations:
Net investment income
(loss) $ 3,732 $ (3,938)
Net realized gain
(loss) on
investments 867,944 993,461
Change in net
unrealized
appreciation
(depreciation) on
investments 704,212 295,984
----------- -----------
Net increase (decrease)
in net assets
resulting from
operations 1,575,888 1,285,507
----------- -----------
Net equalization
credits (debits) 0 0
Dividends and
distributions to
Investor
Shareholders:
From net investment
income (3,008) (4,932)
From net realized
capital gains 0 0
Dividends and
distributions to
Advisor Shareholders:
From net investment
income 0 0
From net realized
capital gains 0 0
----------- -----------
(3,008) (4,932)
----------- -----------
Investor Share
Transactions:
Sales of shares 5,895,300 2,461,359
Reinvestment of
distributions 3,006 4,931
Redemptions of shares (10,081,721) (3,050,541)
----------- -----------
Total increase
(decrease) from
Investor share
transactions (4,183,415) (584,251)
----------- -----------
Advisor Share
Transactions:
Sales of shares 0 0
Reinvestment of
distributions 0 0
Redemptions of shares 0 0
----------- -----------
Total increase
(decrease) from
Advisor share
transactions 0 0
----------- -----------
Net Assets
Beginning of period 11,183,115 10,486,791
----------- -----------
End of period $ 8,572,580 $11,183,115
=========== ===========
Including Undistributed
(distributions in
excess of) net
investment income $ 2,430 $ 1,706
=========== ===========
Other Information
Investor Share
Transactions:
Sales of shares 523,342 232,021
Reinvestment of
distributions 265 473
Redemption of shares (878,862) (283,558)
----------- -----------
Net increase (decrease)
in Investor shares (355,255) (51,064)
=========== ===========
Advisor Share
Transactions:
Sales of shares 0 0
Reinvestment of
distributions 0 0
Redemption of shares 0 0
----------- -----------
Net increase (decrease)
in Advisor shares 0 0
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
26
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Investment Grade Income Fund
--------------------------------------------
Six Months Ended Year Ended
April 30, 2000 (Unaudited) October 31, 1999
-------------------------- ----------------
<S> <C> <C>
Increase (Decrease) in
Net Assets
From operations:
Net investment income
(loss) $ 776,914 $ 1,584,124
Net realized gain
(loss) on
investments (355,538) (767,652)
Change in net
unrealized
appreciation
(depreciation) on
investments (234,228) (1,029,249)
----------- -----------
Net increase (decrease)
in net assets
resulting from
operations 187,148 (212,777)
----------- -----------
Net equalization
credits (debits) 3,562 (7,624)
----------- -----------
Dividends and
distributions to
Investor
Shareholders:
From net investment
income (801,899) (1,589,130)
From net realized
capital gains 0 (875,449)
Dividends and
distributions to
Advisor Shareholders:
From net investment
income 0 0
From net realized
capital gains 0 0
----------- -----------
(801,899) (2,464,579)
----------- -----------
Investor Share
Transactions:
Sales of shares 10,523,347 6,783,285
Reinvestment of
distributions 802,039 2,462,955
Redemptions of shares (12,128,994) (9,738,157)
----------- -----------
Total increase
(decrease) from
Investor share
transactions (803,608) (491,917)
----------- -----------
Net Assets
Beginning of period 24,956,890 28,133,787
----------- -----------
End of period $23,542,093 $24,956,890
=========== ===========
Including Undistributed
(distributions in
excess of) net
investment income $ (8,024) $ 13,399
=========== ===========
Other Information
Investor Share
Transactions:
Sales of shares 1,166,302 709,924
Reinvestment of
distributions 89,804 259,505
Redemption of shares (1,347,462) (1,029,427)
----------- -----------
Net increase (decrease)
in Investor shares (91,356) (59,998)
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
27
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Short-Term Investment Fund
--------------------------------------------
Six Months Ended Year Ended
April 30, 2000 (Unaudited) October 31, 1999
-------------------------- ----------------
<S> <C> <C>
Increase (Decrease) in
Net Assets
From operations:
Net investment income
(loss) $ 609,868 $ 1,456,374
Net realized gain
(loss) on
investments (85,404) (94,336)
Change in net
unrealized
appreciation
(depreciation) on
investments (71,952) (354,992)
----------- -----------
Net increase (decrease)
in net assets
resulting from
operations 452,512 1,007,046
----------- -----------
Net equalization
credits (debits) 0 0
Dividends and
distributions to
Investor
Shareholders:
From net investment
income (609,868) (1,456,374)
From net realized
capital gains 0 0
Investor Share
Transactions:
Sales of shares 30,136,265 23,834,847
Reinvestment of
distributions 608,807 1,433,189
Redemptions of shares (38,072,617) (27,770,642)
----------- -----------
Total increase
(decrease) from
Investor share
transactions (7,327,545) (2,502,606)
----------- -----------
Net Assets
Beginning of period 27,102,284 30,054,218
----------- -----------
End of period $19,617,383 $27,102,284
=========== ===========
Including Undistributed
(distributions in
excess of) net
investment income $ 9,205 $ 9,205
=========== ===========
Other Information
Investor Share
Transactions:
Sales of shares 3,097,451 2,428,306
Reinvestment of
distributions 62,789 146,085
Redemption of shares (3,914,804) (2,828,024)
----------- -----------
Net increase (decrease)
in Investor shares (754,564) (253,633)
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
28
<PAGE>
--------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTOR SHARES
For an Investor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year ended October 31,
April 30, -------------------------------------------------------------
2000 (1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Net Asset Value at
Beginning of Period $ 14.58 $ 14.75 $ 14.48 $ 12.18 $ 11.12 $ 9.45
------- -------- -------- ------- ------- -------
Income from Investment
Operations:
Net Investment Income 0.01 0.03 0.05 0.10 0.11 0.11
Net Realized and
Unrealized Gain
(Loss) on Investments 0.03 3.01 2.95 3.04 1.92 1.63
------- -------- -------- ------- ------- -------
Total from Investment
Operations 0.04 3.04 3.00 3.14 2.03 1.74
------- -------- -------- ------- ------- -------
Less Distributions:
From Net Investment
Income (0.02) (0.04) (0.09) (0.11) (0.13) (0.07)
From Net Realized
Capital Gains (1.01) (3.17) (2.64) (0.73) (0.84) 0.00
------- -------- -------- ------- ------- -------
Total Distributions (1.03) (3.21) (2.73) (0.84) (0.97) (0.07)
------- -------- -------- ------- ------- -------
Net Asset Value at End of
Period $ 13.59 $ 14.58 $ 14.75 $ 14.48 $ 12.18 $ 11.12
======= ======== ======== ======= ======= =======
Total Return 0.17%(3) 23.35% 23.91% 26.18% 19.30% 18.63%
Ratios and Supplemental
Data
Net Assets at End of
Period (000's) $55,292 $ 70,169 $ 60,694 $45,552 $42,905 $38,088
Ratio of Operating
Expenses to Average
Net Assets 0.93%(2,4) 0.94%(2) 1.04%(2) 1.23% 1.26% 1.40%(2)
Ratio of Net Investment
Income to Average Net
Assets 0.11%(4) 0.23% 0.36% 0.63% 0.94% 1.27%
Portfolio Turnover Rate 71.55%(3) 99.56% 161.11% 64.91% 56.83% 83.15%
</TABLE>
----------------
(1) Unaudited.
(2) Net Investment Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--1.17%,
1999--1.19%, 1998--1.20%, 1995--1.45%, respectively.
(3) Not annualized.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
29
<PAGE>
--------------------------------------------------------------------------------
SCHRODER LARGE CAPITALIZATION EQUITY FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--ADVISOR SHARES
For an Advisor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Period Ended
April 30, October 31,
2000 (1) 1999 (2)
<S> <C> <C>
---------------------------------------------------------------------
Net Asset Value at Beginning of Period $ 14.55 $ 13.35
--------- -----------
Income from Investment Operations:
Net Investment Loss (0.06) (0.01)
Net Realized and Unrealized Gain
(Loss) on Investments 0.07 1.21
--------- -----------
Total from Investment Operations 0.01 1.20
--------- -----------
Less Distributions:
From Net Investment Income 0.00 0.00
From Net Realized Capital Gains (1.01) 0.00
--------- -----------
Total Distributions (1.01) 0.00
--------- -----------
Net Asset Value at End of Period $ 13.55 $ 14.55
========= ===========
Total Return (0.07)%(4) 8.99%(4)
Ratios and Supplemental Data
Net Assets at End of Period (000's) $ 11 $ 52
Ratio of Operating Expenses to Average
Net Assets 1.18%(3,5) 1.19%(3,5)
Ratio of Net Investment Income to
Average Net Assets (0.06)%(5) (0.13)%(5)
Portfolio Turnover Rate 71.55%(4) 99.56%(6)
</TABLE>
----------------
(1) Unaudited.
(2) For the period January 19, 1999 (initial offering date of Advisor Shares of
the Fund) through October 31, 1999.
(3) Net Investment Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--63.99%,
1999--76.86%, respectively.
(4) Not annualized.
(5) Annualized.
(6) Represents the Fund's portfolio turnover rate for the entire fiscal year
ended October 31, 1999.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
30
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
--------------------------------------------------------------------------------
Financial Highlights--Investor Shares
For an Investor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
April 30, -------------------------------------------------------------
2000 (1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Net Asset Value at
Beginning of Period $ 13.10 $ 12.91 $ 17.67 $ 13.05 $ 10.77 $ 9.77
------- ------- -------- ------- ------- -------
Income from Investment
Operations:
Net Investment Loss (0.04) (0.08) (0.02) (0.05) (0.05) (0.03)
Net Realized and
Unrealized Gain
(Loss) on Investments 2.35 0.51 (2.05) 5.65 2.34 1.03
------- ------- -------- ------- ------- -------
Total from Investment
Operations 2.31 0.43 (2.07) 5.60 2.29 1.00
------- ------- -------- ------- ------- -------
Less Distributions:
From Net Realized
Capital Gains (0.57) (0.24) (2.69) (0.98) (0.01) 0.00
------- ------- -------- ------- ------- -------
Total Distributions (0.57) (0.24) (2.69) (0.98) (0.01) 0.00
------- ------- -------- ------- ------- -------
Net Asset Value at End of
Period $ 14.84 $ 13.10 $ 12.91 $ 17.67 $ 13.05 $ 10.77
======= ======= ======== ======= ======= =======
Total Return 18.21%(3) 3.40% (13.29)% 48.46% 21.17% 10.27%
Ratios and Supplemental
Data
Net Assets at End of
Period (000's) $55,413 $60,206 $ 67,814 $96,709 $48,614 $47,929
Ratio of Operating
Expenses to Average
Net Assets 1.41%(4) 1.50% 1.29% 1.32% 1.43% 1.56%(2)
Ratio of Net Investment
Income to Average Net
Assets (0.40)%(4) (0.54)% (0.14)% (0.36)% (0.34)% (0.29)%
Portfolio Turnover Rate 65.48%(3) 101.72% 87.51% 77.48% 81.63% 45.74%
</TABLE>
----------------
(1) Unaudited.
(2) Net Investment Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 1995--1.62%,
respectively.
(3) Not annualized.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
31
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SMALL CAPITALIZATION VALUE FUND
--------------------------------------------------------------------------------
Financial Highlights--Advisor Shares
For an Advisor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31, Period Ended
April 30, ---------------------- October 31,
2000 (1) 1999 1998 1997 (2)
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Net Asset Value at Beginning
of Period $ 12.99 $ 12.86 $ 17.67 $ 18.29
-------- ------- -------- --------
Income from Investment
Operations:
Net Investment (Loss) (0.03) (0.11) (0.02) (0.01)
Net Realized and Unrealized
Gain (Loss) on Investments 2.29 0.48 (2.10) (0.61)
-------- ------- -------- --------
Total from Investment
Operations 2.26 0.37 (2.12) (0.62)
-------- ------- -------- --------
Less Distributions:
From Net Realized Capital
Gains (0.57) (0.24) (2.69) 0.00
-------- ------- -------- --------
Total Distributions (0.57) (0.24) (2.69) 0.00
-------- ------- -------- --------
Net Asset Value at End of
Period $ 14.68 $ 12.99 $ 12.86 $ 17.67
======== ======= ======== ========
Total Return 17.98%(4) 2.94% (13.63)% (3.39)(4)
Ratios and Supplemental Data
Net Assets at End of Period
(000's) $ 188 $ 129 $ 49 $ 56
Ratio of Operating Expenses
to Average Net Assets 1.66%(3,5) 1.75%(3) 1.54%(3) 1.46%(5)
Ratio of Net Investment Income
to Average Net Assets (0.71)%(5) (0.84)% (0.42)% 0.63%(5)
Portfolio Turnover Rate 65.48%(4) 101.72% 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 Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--19.01%,
1999--23.27%, 1998--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.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
32
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
--------------------------------------------------------------------------------
Financial Highlights--Investor Shares
For an Investor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year ended October 31, Period Ended
April 30, ---------------------- October 31,
2000 (1) 1999 1998 1997 (2)
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Net Asset Value at Beginning
of Period $ 10.88 $ 9.72 $ 10.36 $ 10.00
-------- -------- -------- --------
Income from Investment
Operations:
Net Investment Income (Loss) 0.00 0.00 (0.01) 0.00
Net Realized and Unrealized
Gain (Loss) on Investments 1.87 1.16 (0.63) 0.36
-------- -------- -------- --------
Total from Investment
Operations 1.87 1.16 (0.64) 0.36
-------- -------- -------- --------
Less Distributions:
From Net Investment Income (0.00)(4) 0.00 0.00 0.00
From Net Realized Capital
Gains 0.00 0.00 0.00 0.00
-------- -------- -------- --------
Total Distributions 0.00 0.00 0.00 0.00
-------- -------- -------- --------
Net Asset Value at End of
Period $ 12.75 $ 10.88 $ 9.72 $ 10.36
======== ======== ======== ========
Total Return 17.22%(5) 11.98% (6.18)% 3.60%(5)
Ratios and Supplemental Data
Net Assets at End of Period
(000's) $ 8,568 $ 11,179 $ 10,484 $ 10,066
Ratio of Operating Expenses
to Average Net Assets (3) 1.35%(6) 1.35% 1.35% 1.35%(6)
Ratio of Net Investment
Income to Average Net
Assets 0.07%(6) (0.03)% (0.06)% (0.13)%(6)
Portfolio Turnover Rate 76.79%(5) 174.98% 165.62% 11.96%(5)
</TABLE>
--------------
(1) Unaudited.
(2) For the period August 1, 1997 (commencement of investment operations)
through October 31, 1997.
(3) Net Investment Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--2.41%,
1999--2.28%,
1998--2.47%, 1997--4.33%, respectively.
(4) Amount was less than $0.01 per share.
(5) Not annualized.
(6) Annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
33
<PAGE>
--------------------------------------------------------------------------------
SCHRODER MIDCAP VALUE FUND
--------------------------------------------------------------------------------
Financial Highlights--Advisor Shares
For an Advisor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year ended Period Ended
April 30, October 31, October 31,
2000 (1) 1999 1998 (2)
<S> <C> <C> <C>
--------------------------------------------------------------------------------
Net Asset Value at Beginning of
Period $ 10.86 $ 9.72 $ 9.30
-------- -------- --------
Income from Investment Operations:
Net Investment Income (Loss) (0.01) (0.03) (0.00)
Net Realized and Unrealized Gain
(Loss) on Investments 1.88 1.17 0.42
-------- -------- --------
Total from Investment Operations 1.87 1.14 0.42
-------- -------- --------
Less Distributions:
From Net Investment Income 0.00 0.00 0.00
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 $ 12.73 $ 10.86 $ 9.72
======== ======== ========
Total Return 17.03%(4) 11.73% 4.52%(4)
Ratios and Supplemental Data
Net Assets at End of Period
(000's) $ 4 $ 4 $ 3
Ratio of Operating Expenses to
Average Net Assets (3) 1.60%(5) 1.60% 1.60%(5)
Ratio of Net Investment Income to
Average Net Assets (0.15)%(5) (0.28)% (1.06)%(5)
Portfolio Turnover Rate 76.79%(4) 174.98% 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 Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--653.58%,
1999--517.02%, 1998--671.68%, respectively.
(4) Not annualized.
(5) Annualized.
(6) Represents the Fund's portfolio turnover rate for the entire fiscal year
ended October 31, 1998.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
34
<PAGE>
--------------------------------------------------------------------------------
SCHRODER INVESTMENT GRADE INCOME FUND
--------------------------------------------------------------------------------
Financial Highlights--Investor Shares
For an Investor Share Outstanding throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year ended October 31,
April 30, -------------------------------------------------------------
2000 (1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Net Asset Value at
Beginning of Period $ 9.06 $ 10.00 $ 9.77 $ 9.70 $ 9.93 $ 9.14
-------- ------- ------- ------- ------- -------
Income from Investment
Operations:
Net Investment Income 0.29 0.55 0.54 0.49 0.53 0.59
Net Realized and
Unrealized Gain
(Loss) on Investments (0.21) (0.62) 0.23 0.16 (0.11) 0.79
-------- ------- ------- ------- ------- -------
Total from Investment
Operations 0.08 (0.07) 0.77 0.65 0.42 1.38
-------- ------- ------- ------- ------- -------
Less Distributions:
From Net Investment
Income (0.30) (0.56) (0.54) (0.49) (0.53) (0.59)
From Net Realized
Capital Gains 0.00 (0.31) 0.00 (0.09) (0.12) 0.00
-------- ------- ------- ------- ------- -------
Total Distributions (0.30) (0.87) (0.54) (0.58) (0.65) (0.59)
-------- ------- ------- ------- ------- -------
Net Asset Value at End of
Period $ 8.84 $ 9.06 $ 10.00 $ 9.77 $ 9.70 $ 9.93
======== ======= ======= ======= ======= =======
Total Return 0.92%(3) (0.78)% 8.10% 7.68% 4.38% 15.62%
Ratios and Supplemental
Data
Net Assets at End of
Period (000's) $ 23,542 $24,957 $28,134 $26,683 $23,708 $23,704
Ratio of Operating
Expenses to Average
Net Assets (2) 0.79%(4) 0.72% 0.89% 1.12% 1.12% 1.06%
Ratio of Net Investment
Income to Average Net
Assets 6.58%(4) 5.81% 5.47% 5.58% 5.46% 6.35%
Portfolio Turnover Rate 134.59%(3) 300.53% 112.69% 43.65% 68.76% 113.50%
</TABLE>
----------------
(1) Unaudited.
(2) Net Investment Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--1.29%,
1999--1.22%, 1998--1.25%, 1997--1.33%, 1996--1.24%, 1995--1.50%,
respectively.
(3) Not annualized.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
35
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SHORT-TERM INVESTMENT FUND
--------------------------------------------------------------------------------
Financial Highlights--Investor Shares
For an Investor Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
April 30, ------------------------------------------------
2000 (1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Net Asset Value at
Beginning of Period $ 9.74 $ 9.90 $ 9.87 $ 9.87 $ 9.88 $ 9.88
------- ------- ------- ------- ------- -------
Income from Investment
Operations:
Net Investment Income 0.28 0.51 0.46 0.46 0.45 0.49
Net Realized and
Unrealized Gain
(Loss) on Investments (0.06) (0.16) 0.03 (0.00) 0.00 0.00
------- ------- ------- ------- ------- -------
Total from Investment
Operations 0.22 0.35 0.49 0.46 0.45 0.49
------- ------- ------- ------- ------- -------
Less Distributions:
From Net Investment
Income (0.28) (0.51) (0.46) (0.46) (0.45) (0.49)
In Excess of Net
Investment Income 0.00 0.00 0.00 0.00 (0.01) 0.00
------- ------- ------- ------- ------- -------
Total Distributions (0.28) (0.51) (0.46) (0.46) (0.46) (0.49)
------- ------- ------- ------- ------- -------
Net Asset Value at End of
Period $ 9.68 $ 9.74 $ 9.90 $ 9.87 $ 9.87 $ 9.88
======= ======= ======= ======= ======= =======
Total Return 2.30%(3) 3.62% 5.09% 4.74% 4.63% 5.02%
Ratios and Supplemental
Data
Net Assets at End of
Period (000's) $19,617 $27,102 $30,054 $27,346 $30,527 $33,936
Ratio of Operating
Expenses to Average
Net Assets 1.03%(2,4) 1.03%(2) 1.03%(2) 1.03%(2) 1.00% 0.95%(2)
Ratio of Net Investment
Income to Average Net
Assets 5.75%(4) 5.21% 4.65% 4.64% 4.50% 4.91%
Portfolio Turnover Rate 29.73%(3) 92.23% 92.95% 65.57% 154.66% 27.86%
</TABLE>
----------------
(1) Unaudited.
(2) Net Investment Income is after reimbursement of certain expenses and/or a
management fee waiver by the Investment Adviser (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 Ratio of Operating
Expenses to Average Net Assets would have been as follows: 2000--1.28%,
1999--1.19%,
1998--1.12%, 1997--1.05%, 1995--1.08%, respectively.
(3) Not annualized.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
36
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Notes to Financial Statements
April 30, 2000 (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, 2000 each Fund had Investor Shares outstanding and
Schroder Large Capitalization Equity Fund, Schroder Small Capitalization Value
Fund and Schroder MidCap Value Fund had Advisor Shares outstanding.
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. In the absence of
sales that day, such securities are valued at the mean of the closing bid and
ask prices ("mid-market price") or, if none, the last sales price on the
preceding trading day. Securities traded in over-the-counter markets are
valued at the most recently reported mid-market price. Debt securities with
remaining maturities of more than 60 days 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 unless the investment adviser believes another
valuation is more appropriate. 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
When entering into repurchase agreements, it is each Fund's policy that
the Fund take into its possession, through its custodian, the underlying
collateral and monitor the collateral's value at the time the agreement is
entered into and on a daily basis during the term of the repurchase agreement
to ensure that it equals or exceeds the repurchase price. In the event of
default or bankruptcy by the other party to the agreement, realization and/or
retention of the collateral 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.
--------------------------------------------------------------------------------
37
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Notes to Financial Statements (CONTINUED)
Investment Income
Dividend income is recorded on the ex-dividend date. Interest income is
recorded on the accrual basis.
Expenses
Expenses are recorded on the 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 Schroder Investment Management North America Inc. ("SIMNA"),
investment adviser to the Trust, 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.
To the extent that a Fund offers two classes of shares, investment income,
common expenses of a Fund, and gains/losses on investments are allocated to
both classes of a Fund based on the respective daily net assets of each class
of such Fund. Shareholder servicing fees related to Advisor Shares are charged
directly to that class. Neither class has preferential dividend rights. Income
dividends, if any, paid by a Fund with respect to two classes of shares will
normally differ in amount due to the differing expenses borne by each class.
Deferred Organization Costs
Costs and expenses of the Funds paid by SIMNA 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. Except for
Schroder MidCap Value Fund, each of the Funds has fully amortized such
amounts. SIMNA has agreed with respect to each of the Funds that, if any of
the initial shares of a Fund are redeemed during such amortization period by
any holder thereof, the redemption proceeds will be reduced for any
unamortized organization expenses in the same ratio as the number of shares
redeemed bears to the number of initial shares held at the time of redemption.
For this purpose, SIMNA 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
--------------------------------------------------------------------------------
38
<PAGE>
--------------------------------------------------------------------------------
SCHRODER SERIES TRUST
--------------------------------------------------------------------------------
Notes to Financial Statements (CONTINUED)
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, 1999, the Funds listed below 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 $280,206 2006
Schroder Investment Grade Income Fund 782,503 2007
Schroder Short-Term Investment Fund 104,408 2004
Schroder Short-Term Investment Fund 4,553 2005
Schroder Short-Term Investment Fund 2,632 2006
Schroder Short-Term Investment Fund 100,859 2007
</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
Real Estate Mortgage Investment Conduit (REMIC), paydowns and 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 SIMNA.
Under the agreement, SIMNA 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.
Throughout the fiscal period SIMNA was contractually obligated to waive a
portion of the investment advisory fees it was 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 paid investment advisory fees to SIMNA at the
annual rate of 0.50% of the Fund's average daily net assets, and Schroder
Investment Grade Income Fund paid no investment advisory fees.
In addition, throughout the fiscal period SIMNA was contractually
obligated to reduce its compensation and, if necessary, to pay certain
expenses of each of the Funds to the extent that a Fund's total operating
expenses attributable to its Investor Shares and its Advisor Shares exceed the
following annual rates: 1.55% and 1.80% of average daily net assets
attributable to Investor Shares and Advisor Shares, respectively, of Schroder
Large Capitalization Equity Fund; 1.70% and 1.95% of average daily net assets
attributable to Investor Shares and Advisor Shares, respectively, of Schroder
Small Capitalization Value Fund; 1.35% and 1.60% of average daily net assets
attributable to Investor Shares and Advisor Shares, respectively, of Schroder
MidCap Value Fund; 1.12% and 1.37% of average daily net assets attributable to
Investor Shares and Advisor Shares, respectively, of Schroder Investment Grade
Income Fund; and 1.03% of average daily net assets attributable to Investor
Shares of Schroder Short-Term Investment Fund. It is anticipated that SIMNA
will continue to observe these fee waivers and expense reimbursements
throughout the current fiscal year.
The Trust has also entered into an Administration Agreement with State
Street Bank and Trust Company ("State Street"). Under the Administration
agreement, the Trust, in addition to other Schroder Funds managed
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39
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SCHRODER SERIES TRUST
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Notes to Financial Statements (CONTINUED)
by SIMNA, pay complex fees according to the following annual rates based on
the combined average daily net assets of all such funds of: 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. Under the plan,
Schroder Fund Advisors Inc. ("Schroder Advisors") or shareholder servicing
organizations provide administrative support services to their customers who
hold a Fund's Advisor Shares. For these shareholder services, Schroder
Advisors is entitled to receive 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
Brokerage Commissions
Brokerage commissions received by affiliates of SIMNA from portfolio
transactions conducted with the Funds during the six month period ended
April 30, 2000, amounted to $2,622.
Trustees' Fees
The Trust pays no compensation to Trustees who are interested persons of
the Trust, SIMNA or Schroder Advisors. For their services as Trustees of all
open-end investment companies distributed by Schroder Advisors, with the
exception of Schroder Series Trust II, trustees who are not interested persons
of the Trust, SIMNA or Schroder Advisors receive an annual retainer of $11,000
and $1,250 per meeting attended in person or $500 per meeting attended by
telephone. Members of an Audit Committee for one or more of the investment
companies will receive an additional $1,000 per year. Payment of the annual
retainer will be allocated among the various investment companies based on
their relative net assets. Payment of meeting fees will be allocated only
among those investment companies to which the meeting relates.
Note 6. Investment Transactions
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund, for the six month period ended April 30,
2000 were as follows:
<TABLE>
<CAPTION>
Non-Government Government Non-Government Government
Purchases Purchases Sales Sales
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Schroder Large Capitalization
Equity Fund $41,330,186 $ 1,638,927 $56,044,988 $ 1,304,619
Schroder Small Capitalization
Value Fund 37,401,989 0 48,411,376 0
Schroder MidCap Value Fund 7,616,695 0 11,553,873 0
Schroder Investment Grade
Income Fund 10,399,809 20,654,856 13,708,798 19,317,434
Schroder Short-Term Investment
Fund 4,045,566 957,031 4,932,525 957,530
</TABLE>
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40
<PAGE>
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SCHRODER SERIES TRUST
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Notes to Financial Statements (CONTINUED)
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, 2000 were as follows:
<TABLE>
<CAPTION>
Gross Unrealized Net Unrealized
Identified ---------------------------- Appreciation/
Cost Appreciation (Depreciation) (Depreciation)
----------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Schroder Large Capitalization
Equity Fund $51,883,412 $7,164,338 $(2,800,500) $4,363,838
Schroder Small Capitalization
Value Fund 48,437,617 9,501,934 (2,179,152) 7,322,782
Schroder MidCap Value Fund 7,329,249 1,571,137 (278,044) 1,293,093
Schroder Investment Grade
Income Fund 24,112,614 58,148 (760,460) (702,312)
Schroder Short-Term Investment
Fund 20,048,753 2,522 (290,346) (287,824)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same
for book and federal income tax purposes at April 30, 2000.
Note 7. Beneficial Interest
The following table shows the number of shareholders each owning
beneficially or of record 5% or more of a class of shares of a Fund
outstanding as of April 30, 2000 and the total percentage of the class of
shares of the Fund held by such shareholders.
<TABLE>
<CAPTION>
5% or Greater Shareholders
---------------------------
Number % of Class Held
-------- -----------------
<S> <C> <C>
Schroder Large Capitalization Equity
Fund--Investor 4 80.06%
Schroder Large Capitalization Equity
Fund--Advisor 1 100.00%
Schroder Small Capitalization Value
Fund--Investor 4 33.58%
Schroder Small Capitalization Value
Fund--Advisor 1 91.44%
Schroder MidCap Value Fund--Investor 5 82.00%
Schroder MidCap Value Fund--Advisor 1 100.00%
Schroder Investment Grade Income
Fund--Investor 4 85.09%
Schroder Short-Term Investment
Fund--Investor 2 94.01%
</TABLE>
Note 8. Subsequent Events
On May 23, 2000, the Trustees voted to close and liquidate the Schroder
Short-Term Investment Fund. On May 23, 2000, the Trustees approved an
Agreement and Plan of Reorganization, subject to shareholder approval, to have
the Schroder Large Capitalization Equity Fund merge into the Schroder U.S.
Diversified Growth Fund, a series of Schroder Capital Funds (Delaware).
Effective June 23, 2000, the Advisor Shares of Schroder Large
Capitalization Equity Fund, Schroder Small Capitalization Value Fund and
Schroder MidCap Value Fund were recapitalized to Investor Shares, such that no
Fund presently has any Advisor Shares outstanding.
The Trustees of the Trust have approved a new investment objective for
Schroder Investment Grade Income Fund, changes to the principal investment
strategies of that Fund, and a change in the name of the Fund to "Schroder
Total Return Fixed Income Fund." In addition, the Trustees have approved
changes to, or the elimination of, certain fundamental investment policies of
Schroder Investment Grade Income Fund, Schroder Small Capitalization Value
Fund, and Schroder MidCap Value Fund. Each of these matters is subject to the
approval of the shareholders of the particular Fund, to be considered at a
meeting scheduled to take place on or about August 11, 2000.
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41
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INVESTMENT ADVISER
Schroder Investment Management
North America Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
TRUSTEES
Sharon L. Haugh, CHAIRMAN
Catherine A. Mazza, VICE CHAIRMAN
David N. Dinkins
Peter E. Guernsey
John I. Howell
Peter S. Knight
William L. Means
Clarence F. Michalis
Hermann C. Schwab
DISTRIBUTOR
Schroder Fund Advisors Inc.
787 Seventh Avenue, 34th Floor
New York, NY 10019
TRANSFER & SHAREHOLDER
SERVICING AGENT
Boston Financial Data Services, Inc.
CUSTODIAN
State Street Bank and Trust Company
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
COUNSEL
Ropes & Gray
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.
Schroder Series Trust
P.O. Box 8507
Boston, MA 02266
800-464-3108
[SCHRODER 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, 2000
(Unaudited)
WS0600SAR
