UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSRS
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-21364
SCHRODER GLOBAL SERIES TRUST
(Exact name of registrant as specified in charter)
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875 Third Avenue, 22nd Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
Schroder Global Series Trust
P.O. Box 8507
Boston, MA 02266
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-464-3108
DATE OF FISCAL YEAR END: OCTOBER 31, 2006
DATE OF REPORTING PERIOD: APRIL 30, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
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SCHRODER MUTUAL FUNDS
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APRIL 30, 2006 SEMI-ANNUAL REPORT
Schroder North American Equity Fund
Schroder U.S. Opportunities Fund
Schroder U.S. Small and Mid Cap Opportunities Fund
Schroder International Alpha Fund
Schroder Emerging Market Equity Fund
Schroder Enhanced Income Fund
Schroder Total Return Fixed Income Fund
Schroder Municipal Bond Fund
Schroder Short-Term Municipal Bond Fund
[LOGO OMITTED] SCHRODERS
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SCHRODER MUTUAL FUNDS
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May 20, 2006
Dear Shareholder:
We are pleased to provide the Semi-Annual Report to shareholders of the Schroder
Mutual Funds, which covers the six months ended April 30, 2006. The report
includes information designed to help you understand the status of your
investment--the Management Discussion and Analysis prepared by each portfolio
manager explains how they put your money to work in various markets; the
Schedules of Investments give you a point-in-time picture of the holdings in
your fund; and additional information includes a detailed breakdown of other
financial information. We encourage you to read the report and thank you for
making Schroders part of your financial plan. Please note that the report
includes information covering the Schroder U.S. Small and Mid Cap Opportunities
and Emerging Market Equity Funds, both of which were launched on March 31, 2006.
The six months under review offered investors in most asset classes positive
returns, although the final two months of 2005 were volatile. Investors, in
turn, appear to have increased their risk tolerance during the first quarter, as
seen by strong inflows to emerging markets and a sell-off in government bonds.
In fact, according to both Morgan Stanley and Emerging Portfolio Fund Research,
total investment in emerging markets in the first quarter of 2006 surpassed the
total amount recorded in the whole of 2005. An upswing in mergers and
acquisitions activity and good global market performance also drove up equity
prices through April. However, increased concern over rising U.S. interest
rates, the specter of potential inflation, ongoing turmoil in the Middle East
and higher oil prices have all combined to raise concerns about the global
economy's future growth. Asia continues to be a bright spot, where China and
Korea are powering economic growth and Japan is continuing its recovery. The
Eurozone is a relatively late entrant in the current global expansion and is
being led primarily by Germany. Business confidence in the region continues to
improve, including the industrial component of the German IFO index rising to
its highest level in 15 years. Industrial production appears to be recovering
more strongly than many observers had previously predicted. However,
unemployment in Germany continues to weigh on overall consumer spending.
Critically important to the ongoing recovery is the European Central Bank's
speed of interest rate normalization.
Given factors in the rest of the world, however, investors in the U.S. remained
cautious and the market shifted momentum in a number of areas. While U.S.
large-cap stocks continued to find favor with investors over the six-month
period, it was small- and, especially, mid-cap stocks across the globe that
generally delivered the best overall performance. Non-U.S. companies of all
sizes generally performed very well, as the falling dollar helped boost returns.
In the U.S., market weakness was concentrated in those areas that tend to be
particularly sensitive to interest rates--financial services and consumer goods,
for example--and technology stocks in general, which cannot seem to establish a
new equilibrium following the excesses of the past decade.
With oil prices averaging in excess of $60 per barrel for the six-month period,
energy stocks were generally stellar performers, as were drillers, oil service
companies and gasoline retailers.
In the global credit markets, the sell-off in government bonds against the
backdrop of rising equity markets suggests that investors have raised their
expectations for growth and are demanding a higher real return from risk-free
assets. This process is likely to continue as growth is expected to rise and the
U.S. yield curve to steepen still more. This rise in U.S. bond yields is notable
because it has brought an end to the flattening of the yield curve. After the
Fed's rate hike in April to 4.75%, long yields rose and the curve finally
steepened, suggesting that investors were questioning whether a flat curve was
consistent with an improving economic outlook.
The U.S. continues to defy expectations and grow at a strong rate. After a
relatively anemic fourth quarter, growth in the first quarter of 2006 was
torrid. As of the end of April, the burden of higher energy prices and interest
rates had yet to register a significant impact on growth. Several concerns
remain, however, about the long-term growth prospects for the U.S. economy. A
once-red-hot housing market has begun to slow down--which will decrease the
amount of disposable income consumers have to spend on goods and services.
Additionally, the price of crude oil remained high and rose to just over $75 per
barrel by the middle of April--raising the cost of doing business for
corporations and again decreasing consumer discretionary income. While we
believe that the U.S. Federal Reserve is nearing the end of its current monetary
tightening
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SCHRODER MUTUAL FUNDS
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campaign, we believe that the prospect of higher interest rates coupled with
higher energy costs has investors nervous about the world's stock markets. The
U.S. and the global economies depend on continued consumer spending to keep
company earnings growing, and the availability of cheap credit and energy is a
big part of that equation.
We expect market volatility to rise over the course of the year, and that higher
quality securities will continue to find favor with investors. We do not see the
current conditions as the start of a more significant downturn in growth. In the
absence of any major stimulus from fiscal or monetary policy, however, we
believe that the economy is unlikely to experience much acceleration either.
In this type of environment, we believe that the investor who maintains a
diversified portfolio--both across asset classes and geographic borders--should
be able to weather the bumpy periods better than those who have high
concentrations in one or two sectors. We encourage you to consult with your
financial advisor to ascertain whether your current mix of investments is
suitable for your long-term objectives.
Again, we thank you for including Schroders in your financial plan and we look
forward to our continued relationship.
Sincerely,
/s/ Mark A. Hemenetz
Mark A. Hemenetz, CFA
President
THE VIEWS EXPRESSED IN THE FOLLOWING REPORT WERE THOSE OF EACH RESPECTIVE FUND'S
PORTFOLIO MANAGER AS OF THE DATE SPECIFIED, AND MAY NOT REFLECT THE VIEWS OF THE
PORTFOLIO MANAGER ON THE DATE THIS SEMI-ANNUAL REPORT IS FIRST PUBLISHED OR ANY
TIME THEREAFTER. THESE VIEWS ARE INTENDED TO ASSIST SHAREHOLDERS OF THE FUNDS IN
UNDERSTANDING THEIR INVESTMENT IN THE FUNDS AND DO NOT CONSTITUTE INVESTMENT
ADVICE; INVESTORS SHOULD CONSULT THEIR OWN INVESTMENT PROFESSIONALS AS TO THEIR
INDIVIDUAL INVESTMENT PROGRAMS. CERTAIN SECURITIES DESCRIBED IN THESE REPORTS
MAY NO LONGER BE HELD BY THE FUNDS AND THEREFORE NO LONGER APPEAR IN THE
SCHEDULES OF INVESTMENTS AS OF APRIL 30, 2006.
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2
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SCHRODER NORTH AMERICAN EQUITY FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the six months ended April 30, 2006, the Schroder North American Equity Fund
rose 10.25% (Investor Shares), compared to the FTSE North American Index (the
"Index"), a broad-based basket of North American stocks, which rose 10.56%. For
the same six-month period, the S&P 500 Index increased 9.64%.
Additionally, in the one month from its inception date on March 31, 2006 to
April 30, 2006, Schroder North American Equity Fund's Advisor Shares rose 1.35%
compared to an increase in the Index of 1.43% and an increase in the S&P 500
Index of 1.34% during the same one-month period. In the future, this semi-annual
report will address six months of performance for both share classes of the
Fund.
MARKET BACKGROUND
Equity markets in North America performed reasonably well in the six-month
period, driven by generally positive economic news and an increase in
merger-and-acquisition activity--both in the U.S. and internationally--involving
many market-leading names. U.S. equities continued to lag in global terms,
however, apparently hindered by the interest rate outlook.
The Federal Reserve, making its first rate decision with Ben Bernanke as
Chairman, raised its key rate by a quarter point to 4.75% (subsequently to
5.00%) and suggested that further tightening might still be necessary, as growth
remains strong in its view. Bernanke kept most of his predecessor Alan
Greenspan's language in the statement accompanying the decision--this language
being closely examined by economists looking for signs of any new strategy.
PORTFOLIO REVIEW
One of the most significant changes to the Fund's positioning over the past
several months was in the financials sector. Relative share price movements
prompted a rotation from insurance and capital markets stocks into thrifts and
real estate stocks, since fears that U.S. interest rates might rise further than
anticipated had resulted in weak relative performance from
interest-rate-sensitive stocks.
The Fund benefited from particularly good sector allocation and stock selection
in the utilities sector, where KEYSPAN rose strongly following a takeover
approach, and within the metals and mining industry as commodity prices
continued to rise. The single greatest stock contributor was U.S. steel company
NUCOR, while TECK COMINCO, the zinc and copper producer, also outperformed as
several base metals prices reached multi-year highs. This performance was
partially offset by weaker relative performance in the energy and consumer
discretionary sectors. In particular, an underweight position in CANADIAN
NATURAL RESOURCES, an oil and gas producer in Canada, and negative stock
selection in the media and retail industries hurt relative performance.
OUTLOOK
Schroders continues to view the U.S. economy positively. While a moderate
deceleration in GDP growth is likely, this environment should be strong enough
for corporate profit growth to stay on track. The housing market, which has
softened recently, is a primary concern, as is the possibility that low
unemployment and a slight up-tick in wage growth may cause some inflationary
pressures. Given the length and extent of outperformance from the more cyclical
areas of the market, the potential for some near-term profit-taking in these
sectors cannot be discounted.
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3
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SCHRODER NORTH AMERICAN EQUITY FUND
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PERFORMANCE INFORMATION
One Year
Ended Inception to
April 30, 2006 April 30, 2006
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Schroder North American Equity Fund --
Investor Shares ........................... 17.25% 13.15%(a)
Advisor Shares ............................ n/a 1.35%(b)
(a) The Investor Shares commenced operations on September 17, 2003.
(b) Cumulative total return from commencement of Advisor Shares operations
(March 31, 2006). Not annualized.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
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Health & Personal Care 14.2%
Commercial & Other Banks 10.5
International Oil, Crude &
Petroleum Products 10.4
Financial Institution & Services 9.1
Other 6.5
Business Services & Computer Services 6.0
Computers/Telecommunications &
Office Equipment 5.3
Retail Trade 5.3
Electric, Gas Utilities & Telephone 4.8
Electronics & Instrument/
Control Equipment 3.6
SECTOR % OF INVESTMENTS
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Multi-Line Property & Casualty Insurance 3.5%
Beverage & Tobacco 3.0
Media 2.9
Aerospace & Defense 2.5
Insurance-Life & Agents/Brokers 1.8
Transportation & Storage 1.8
Entertainment, Leisure & Toys 1.6
Chemicals 1.5
Mining, Metals & Minerals 1.5
Real Estate 1.4
Food & Grocery Products 1.2
Short-Term Investments 1.6
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4
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SCHRODER U.S. OPPORTUNITIES FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the six months ended April 30, 2006, the Schroder U.S. Opportunities Fund
rose 19.72% compared to the Russell 2000 Index, a broad-based basket of stocks
with characteristics similar to the Fund's portfolio, which rose 18.91%.
The Fund's outperformance was driven by strong stock selection. In particular,
stock selection in the healthcare and energy sectors as well as certain
technology stocks contributed to performance. Stock selection within the
consumer discretionary and consumer staples sectors detracted from the Fund's
performance during the six-month period.
MARKET BACKGROUND
Economic news was generally positive during the six months under review. Small
companies generally produced strong returns over this time as investors appear
to have become more confident in economic prospects. In spite of rising interest
rates, high energy prices and a cooling housing market, U.S. consumers have
continued to spend. Most sectors of the market produced solid returns, with
producer durables and materials and processing among the best performers.
In the small-cap arena, some of the best returns continued to come from energy
stocks, which profited from the dramatic increase in oil prices--having reached
an all-time high (in absolute dollar terms) of over $75 per barrel during the
period.
PORTFOLIO REVIEW
During the six-month period, the Fund performed well, with particularly good
performance from our healthcare, technology and energy stocks. Strong
contributors to outperformance were RSA SECURITY, which issued strong earnings
and won another key contract to supply its user authentication (data protection)
package, and RACKABLE SYSTEMS (computer servers and data storage), which
reported record earnings from significantly increased margins. Other technology
stocks performed well, including INTEGRATED DEVICE TECHNOLOGY and VOLTERRA
SEMICONDUCTOR, amid growing confidence in the prospects for increased capital
spending in the technology area.
Within financial services, two of the Fund's largest overweights, MAX RE CAPITAL
and REINSURANCE GROUP OF AMERICA, hurt relative performance. MAX RE CAPITAL
reported a loss in the fourth quarter of 2005 and guidance for 2006 was weaker
than the market had expected. REINSURANCE GROUP OF AMERICA reported a strong
fourth quarter in 2005 but did not meet full-year 2005 earnings
expectations--due in part to adverse claims experience.
OUTLOOK
We believe the U.S. economy is in good shape, supported by Gross Domestic
Product numbers, payroll growth, consumer confidence and productivity gains. The
Fed appears to be nearing the end of its interest rate tightening phase,
allaying fears it would go too far.
Uncertainties include the generally high levels of housing prices and rising
inventories of unsold homes. This situation could eventually dampen the
consumer's feeling of well-being as levels of home equity decline. Additionally,
energy prices continue to be high, influencing the level of discretionary
spending for millions of Americans.
Valuation levels continue to be challenging for smaller companies, especially on
the heels of the strong performance in the first quarter of 2006. Finding
undervalued securities is becoming increasingly difficult. Having said that, we
believe that our fundamental-based research process will continue to identify
stocks selling at discounts to their fair values in what we believe has become a
stockpicker's market--a market that will not likely reward broad ownership of
sectors or industries but rather individual names.
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5
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SCHRODER U.S. OPPORTUNITIES FUND
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PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2006 April 30, 2006 April 30, 2006
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Schroder U.S. Opportunities Fund (a) --
Investor Shares ............................ 31.71% 13.27%(b) 13.23%(b)
<FN>
(a) The current portfolio manager primarily responsible for making investment
decisions for the Fund assumed this responsibility effective January 1, 2003.
The performance results for periods prior to January 1, 2003 were achieved by
the Fund under a different portfolio manager.
(b) Average annual total return.
</FN>
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY* % OF INVESTMENTS
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Conseco 2.4%
Scientific Games Class A 2.4
RSA Security 2.1
Max Re Capital 1.9
Reinsurance Group of America 1.5
*Excludes any Short-Term Investments that are part of the top
5 holdings in the Fund.~
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
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Technology 16.9%
Healthcare 14.5
Financial Services 13.5
Consumer Discretionary 11.4
Other Energy 7.0
Business Services 6.6
Producer Durables 6.3
Materials & Processing 6.0
Autos & Transportation 2.4
Utilities 1.6
Telephones & Telecommunications 1.0
Consumer Staples 0.7
Other 0.6
Short-Term Investments 11.5
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6
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SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the one month from its inception date on March 31, 2006 to April 30, 2006,
the Schroder U.S. Small and Mid Cap Opportunities Fund rose 1.40% (Investor and
Advisor Shares), compared to the Russell 2500 Index (the "Index"), a broad-based
basket of stocks with characteristics similar to the Fund's portfolio, which
rose 0.35%. In a normal six-month reporting period we would expect the
performance of the Advisor Class to be lower than Investor Class but, because of
the limited time covered by this report the expenses were too minimal to make a
material difference. In the future, this semi-annual report will address six
months of performance.
MARKET BACKGROUND
Economic news was generally positive during the period. Job growth continues on
an upward trajectory and inflation appears to be broadly under control. We have
some concerns regarding the softening housing market, but we do not foresee a
collapse there. One area that continues to become more challenging is the
appropriate valuation levels for small-and mid-cap stocks, especially on the
heels of such a strong first quarter in 2006.
PORTFOLIO REVIEW
During the period under review, the Fund benefited from particularly good stock
selection in the consumer discretionary, financial services and producer durable
sectors. The Fund's underweight in the financial services sector and overweight
in the energy sector also helped to drive performance. The Fund's overweight in
the healthcare sector detracted from relative performance over the reporting
period, as did stock selection in the technology sector.
The most positive contributors were DIVERSA, which develops enzymes and
biologically active compounds used in a range of high-growth industries, and
lottery games operator SCIENTIFIC GAMES, which continued to perform well. The
significant detractors were NOBLE Energy, an oil and gas producer and, in the
technology sector, INTERNATIONAL RECTIFIER, which designs and manufactures
semiconductors.
PLEASE NOTE THAT STOCK AND SECTOR ATTRIBUTION IS MORE MEANINGFUL OVER LONGER
TIME PERIODS.
OUTLOOK
We believe the U.S. economy is in good shape, supported by Gross Domestic
Product numbers, payroll growth, consumer confidence and productivity gains. The
Fed appears to be nearing the end of its interest rate tightening phase,
allaying fears it would go too far.
Uncertainties include the generally high levels of housing prices and rising
inventories of unsold homes. This situation could eventually dampen the
consumer's feeling of well-being, as levels of home equity decline.
Additionally, energy prices remain high, influencing the level of discretionary
spending for millions of Americans.
With valuation levels a challenge for small- and mid-cap companies, finding
undervalued securities is becoming increasingly difficult. Having said that, we
believe that our fundamental-based research process will continue to identify
stocks selling at discounts to their fair values in what we believe has become a
stockpicker's market--a market that will not likely reward broad ownership of
sectors or industries, but rather individual names.
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7
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SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
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PERFORMANCE INFORMATION
Inception to
April 30, 2006
--------------
Schroder U.S. Small and Mid Cap Opportunities Fund (a)--
Investor Shares ........................................... 1.40%
Advisor Shares ............................................ 1.40%
(a) Cumulative total return from commencement of Fund operations (March 31,
2006). Not annualized.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY* % OF INVESTMENTS
- -----------------------------------------------------
Emulex 3.0%
Parametric Technology 2.8
Activision 2.5
VeriSign 2.5
Thermo Electron 2.4
*Excludes any Short-Term Investments that are part of the top
5 holdings in the Fund.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
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Technology 22.6%
Consumer Discretionary 15.4
Healthcare 14.7
Financial Services 12.3
Materials & Processing 9.2
Other Energy 8.4
Producer Durables 4.5
Utilities 2.4
Consumer Staples 2.1
Other 1.9
Autos & Transportation 0.2
Short-Term Investments 6.3
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8
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SCHRODER INTERNATIONAL ALPHA FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the six months ended April 30, 2006, the Schroder International Alpha Fund
(formerly, Schroder International Fund) rose 24.85% compared to the Morgan
Stanley Capital International EAFE (Europe, Australasia and Far East) Index (the
"Index"), a broad-based basket of international stocks, which rose 22.89%.
During the period, the Fund's stock selection in Japan, emerging markets and
Canada contributed most to performance. From a sector perspective, our choice of
stocks in energy, financials, utilities and telecoms added the most value, more
than offsetting weaker performance from our consumer discretionary and staples
holdings.
MARKET BACKGROUND
Positive economic data and an increase in mergers and acquisitions activity
during the period drove international equity markets significantly higher.
Consumer and business confidence strengthened in most regions, including the
U.S., where resilient consumers continued to spend despite soaring oil prices
and rising interest rates. Confidence has also improved in Japan and continental
Europe, particularly Germany. Throughout the world and in most areas of the
market, corporate earnings remained healthy and often surprised on the upside.
Continental Europe generally produced the best returns in developed
international markets during the six-month period. After several years of
cutting costs, repairing balance sheets and growing profits, many companies
accumulated cash, which fueled the rise in mergers and acquisitions. Export
demand also increased, which helped drive markets higher, although consumer
spending remained fairly muted despite improving employment conditions.
Meanwhile, Japan continued to perform well as its economy, driven by increased
consumer spending and strong foreign investment flows, continued to recover. The
Bank of Japan signaled the end of its long-running zero-interest-rate policy as
it acknowledged that economic growth was sustainable and inflation was
returning.
The price of crude oil rose as tensions in the Middle East intensified. The
price of several other commodities also rose, with the price of gold soaring on
safe-haven buying and copper rallying in response to strong demand growth in
China. At the same time, industrial production was strong and increasing demand
for capital goods created growing backlogs in company order books. In the period
and on a global basis, the materials, industrials and technology sectors
produced the best returns. In contrast, telecommunications was the
weakest-performing sector.
PORTFOLIO REVIEW
From a regional perspective, our stock selections in Japan, emerging markets and
Canada contributed significantly to performance. Companies leveraged into the
Japanese recovery turned in some of the best performances, including the Fund's
holdings in MITSUBISHI ESTATE (real estate), ORIX (real estate and other
financial services) and NITTO DENKO (materials). Performance in Canada was led
by two of the Fund's energy holdings, namely SUNCOR ENERGY and NIKO RESOURCES.
The strongest-performing stocks in our exposure to emerging markets were
PETROBRAS (Brazilian oil company), DAEWOO SHIPBUILDING & MARINE ENGINEERING
(Korean industrial) and TELEKOMUNIKASI (Indonesian telecommunications).
Other notable individual performers in the period were companies benefiting from
the continued economic strength in China and the mining cycle, such as ATLAS
COPCO (Swedish machinery) and RIO TINTO (U.K. mining). Other names, such as
RENAULT (French car maker), BG GROUP (U.K. energy), SCHNEIDER ELECTRIC (French
capital goods) and ROLLS-ROYCE GROUP (U.K. aerospace), also had strong positive
impacts on the portfolio.
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9
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SCHRODER INTERNATIONAL ALPHA FUND
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VODAFONE GROUP was among the greatest detractors from performance, although the
U.K. mobile phone giant recovered toward the end of the period as management
announced plans to restructure the company. Other detractors included NOVA
CHEMICALS (Canada-based commodity chemicals producer) and FRANCE TELECOM, the
latter having issued a profits warning as management spoke of tougher trading
conditions. The Fund sold its holding in FRANCE TELECOM during the period amid
growing concerns over management's commitment to shareholders.
OUTLOOK
We are cautiously optimistic on international equity markets. Growth looks
likely to continue a rebalancing as non-U.S. economies become more influential
players in global markets. One of the main drivers is still China, which
continues to import raw materials (helping the Pacific region, emerging markets
and Europe) and "export" deflation to the world through cheap exported goods. We
believe that growth is likely to slow this year, but remain robust. Corporate
balance sheets are generally healthy, as shown by the current levels of mergers
and acquisitions, share buybacks and dividend payouts. We also expect it to
continue driving capital spending. Headwinds for the global economy are
well-known, including rising interest rates, high energy prices and a slowing
U.S. housing market.
The Fund expects to maintain a balanced approach, emphasizing what we believe
are high-quality companies at reasonable valuations that we believe demonstrate
strong competitive advantages.
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2006 April 30, 2006 April 30, 2006
-------------- ---------------- ---------------
Schroder International Alpha Fund -- Investor Shares 39.19% 6.12%(a) 6.45%(a)
<FN>
(a) Average annual total return.
</FN>
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY % OF INVESTMENTS
- -----------------------------------------------------
Rolls-Royce Group 3.7%
Deutsche Bank 3.3
Mitsubishi Corp. 3.1
ORIX 3.1
Royal Bank of Scotland Group 2.9
GEOGRAPHIC ALLOCATION
- -----------------------------------------------------
% of Investments [PIE CHART OMITTED]
Continental Europe 30.1%
United Kingdom 26.5
Japan 19.2
Emerging Markets 11.3
Pacific ex-Japan 7.0
North America 5.4
Short-Term Investments 0.5
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10
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SCHRODER EMERGING MARKET EQUITY FUND
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MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the one month from its inception date on March 31, 2006 to April 30, 2006,
the Schroder Emerging Market Equity Fund rose 6.20% (Investor Shares) and 6.10%
(Advisor Shares), compared to the Morgan Stanley Capital International Emerging
Markets Index (the "Index"), a broad-based basket of international stocks, which
rose 7.12%. In the future, this semi-annual report will address six months of
performance.
During the period, the Fund benefited from its regional strategy--particularly
its overweight positions in Russia and Argentina. The Fund's underweight
positions in Poland and Hungary, however, detracted from performance. Strong
stock selection in India and China helped performance while poor stock selection
in Korea and Taiwan hurt the Fund.
MARKET BACKGROUND
Global emerging markets generally posted strong returns over the six-month
period, helped by commodity price strength, robust investor inflows and interest
rate cuts in markets such as Brazil. Even though interest rates were increased
in the United States over the six-month period, overall monetary policy is still
generally loose and liquidity strong. For the fifth consecutive year, emerging
markets outperformed developed markets, supported by continued strong global
growth and liquidity. Furthermore, emerging markets have now provided investors
with three consecutive calendar years of positive returns.
PORTFOLIO REVIEW
While stock and sector attribution is more meaningful over longer time periods,
Schroder Emerging Market Equity Fund underperformed its benchmark index during
the one month since the Fund's inception. The Fund's relatively high exposure to
Russia (which also performed strongly) added value but an underweight in the
strongly performing Indian market held back relative returns.
OUTLOOK
We believe that the remainder of 2006 is likely to be benign for emerging
markets. Global growth conditions appear to be robust (a key consideration as
many emerging market countries are significant exporters) while U.S. interest
rates look likely to peak in the near future, thus helping to keep both global
liquidity rates and demand for emerging market products strong.
Given that emerging markets have had a strong run, however, we expect to be
cautious to gradually reduce risk levels in the Fund's portfolio if we detect an
increase in risk aversion and a decrease in liquidity. We expect to maintain our
basic approach of allocating to the most attractive countries in the emerging
market universe and purchasing what are, in our view, the best companies in each
country. We are confident that this approach will pay off during the remainder
of the year as we anticipate that fundamentals, rather than momentum, will
become the key performance drivers.
- --------------------------------------------------------------------------------
11
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
Inception to
April 30, 2006
--------------
Schroder Emerging Market Equity Fund (a) --
Investor Shares .......................................... 6.20%
Advisor Shares ........................................... 6.10%
(a) Cumulative total return from commencement of Fund operations (March 31,
2006). Not annualized.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY % OF INVESTMENTS
- -----------------------------------------------------
Samsung Electronics GDR 7.2%
Petroleo Brasileiro ADR 4.1
Taiwan Semiconductor Manufacturing
ADR 4.0
Kookmin Bank ADR 4.0
LUKOIL ADR 2.7
GEOGRAPHIC ALLOCATION
- -----------------------------------------------------
% of Investments [PIE CHART OMITTED]
Asia/Far East 51.8%
Europe 18.5
Latin America 16.2
Africa 8.6
Mid-East 3.1
North America 1.4
Short-Term Investments 0.4
- --------------------------------------------------------------------------------
12
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the six months ended April 30, 2006, the Schroder Enhanced Income Fund rose
2.13% (Investor Shares) and 1.98% (Advisor Shares), compared to the LIBOR
3-Month USD Fixed Index (the "Index"), a widely used measure of short-term debt
returns, which rose 2.33%.
Overall performance trailed the Index during the six-month reporting period due
to the rising interest rate environment --the Fund maintained a longer average
duration than the Index and was thus held back by the effects of higher
short-term interest rates.
MARKET BACKGROUND
In the past six months, the broad U.S. bond market (up 0.56%, as measured by the
Lehman Aggregate Bond Index) underperformed the stock market (up 9.64%, as
measured by the S&P 500 Index), as investors drove up equity prices late in 2005
and early 2006.
U.S. Treasury yields rose during the reporting period to their highest levels
since the start of the Federal Reserve's tightening cycle in June of 2004. The
Fed funds rate, at 4.75% on April 30, 2006, moved to 5.0% on May 10. 2-, 10- and
30year Treasury yields ended the reporting period up 48, 50 and 41 basis points,
respectively, from the beginning of the reporting period. The yield differential
between 2-year and 30-year Treasuries tightened by 8 basis points between
October 31, 2005 and April 30, 2006, after being as much as 34 basis points
narrower than the October 31, 2005 yield differential in February.
Economic data releases by the end of the reporting period were strong,
rebounding from a soft Q4 2005 and the Fed responded as anticipated with its
continued tightening. This did not surprise investors and the resulting lack of
volatility allowed mortgage-backed securities to perform well in January and
February but underperform afterward as investors took profits. Investment grade
credit reacted similarly, doing well in January and February but then posting
negative returns. The much anticipated re-introduction of the 30-year Treasury
bond was in strong demand, performed very well initially and sold off with the
rest of the yield curve in March.
PORTFOLIO REVIEW
The Fund underperformed its Index over the past six months. Exposure to the
flattening yield curve at the end of 2005 boosted performance but, since the
securities held by the Fund had a longer average duration that the securities in
the Index, this was offset by the effects of higher short-term interest rates.
OUTLOOK
We expect that interest rate hikes are nearing an end. While more rate hikes are
still likely, the Federal Reserve has noted that future actions will be
influenced by economic data reports during the coming weeks and months. We see
economic growth in the first part of 2006 on track to be in the 3.5% area. We
expect that short-term interest rates will remain captive to the eventual peak
in the Fed Funds rate but long-term interest rates will remain historically low
given the level of both growth and the Fed funds rate. This caused the yield
curve to steepen in the early months of 2006.
Although an interest rate pause is certainly possible, the current state of the
economy and inflation does not necessarily imply a complete halt by the Fed. The
Fund therefore expects to continue to underweight the short end of the yield
curve. The recent activity in the marketplace highlights the great amount of
uncertainty investors have and we feel volatility, both actual and implied, is
due to rise. In the expected market conditions, the Fund expects to continue to
seek opportunities in high quality, short-term issues to provide liquidity and
current income consistent with the preservation of capital.
- --------------------------------------------------------------------------------
13
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2006 Inception (a)
-------------- -------------
Schroder Enhanced Income Fund --
Investor Shares ............................ 3.52% 3.24%
Advisor Shares ............................. 3.23% 2.97%
(a) From commencement of Fund operations on December 31, 2004.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY % OF INVESTMENTS
- -----------------------------------------------------
Countrywide Alternative Loan Trust,
Series 2005-76, Class 1A1
5.368%, 1/25/35 4.8%
AIG 4.759%, 5/03/06 4.6
Residential Accredit Loans,
Series 2005-Q02, Class A1
5.371%, 9/25/45 3.4
Citicorp 4.763%, 5/01/06 3.2
American Home Mortgage Investment Trust,
Series 2005-1, Class 1A1
5.179%, 6/25/45 3.1
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- -----------------------------------------------------
Collateralized Mortgage Obligations 58.3%
Asset-Backed Securities 15.6
Mortgage-Backed Obligations 9.7
Commercial Paper 7.8
U.S. Government Mortgage-Backed
Obligations 4.3
U.S. Treasury Obligations 3.3
Corporate Obligation 0.2
Short-Term Investment 0.8
- --------------------------------------------------------------------------------
14
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
We are pleased to report that during the six months ended April 30, 2006, the
Schroder Total Return Fixed Income Fund (formerly, Schroder U.S. Core Fixed
Income Fund) rose 0.79% (Investor Shares) and 0.59% (Advisor Shares), compared
to the Lehman U.S. Aggregate Bond Index (the "Index"), a broad-based basket of
U.S. debt securities, which rose 0.56%.
The Fund's solid performance was largely due to its strategy of owning fewer
Treasuries in favor of both residential and commercial mortgage-backed
securities. The Fund's overweight position in corporate sectors that did well
and underweight position in those that did poorly also helped to drive
performance. In addition, the Fund avoided that 2- to 3-year duration segment
where the Fed's action seemed to have the most impact while the Fund's exposure
to the flattening yield curve --which occurs when the difference between
short-term and long-term interest rates is falling--at the end of 2005 had a
positive effect on performance as 30-year Treasuries rallied significantly.
MARKET BACKGROUND
U.S. Treasury yields rose during the reporting period to their highest levels
since the start of the Federal Reserve's tightening cycle in June of 2004. The
Fed funds rate, at 4.75% on April 30, 2006, moved to 5.0% on May 10. 2-, 10- and
30year Treasury yields ended the reporting period up 48, 50 and 41 basis points,
respectively, from the beginning of the reporting period. The yield differential
between 2-year and 30-year Treasuries tightened by 8 basis points from October
31, 2005 to April 30, 2006. This is a substantial steepening of the yield curve,
given that as late as the middle of the first quarter of 2006 it was in inverted
territory--having finished the month of February inverted by 17 basis points.
Economic data releases by the end of the reporting period were strong,
rebounding from a soft fourth quarter of 2005, and the Fed responded as
anticipated with its continued tightening. This did not surprise investors and
the resulting lack of volatility allowed mortgage-backed securities to perform
well in January and February but underperform afterward as investors took
profits. Investment grade credit reacted similarly, doing well in January and
February but then posting negative returns. The much anticipated re-introduction
of the 30-year Treasury bond was in strong demand, performed very well initially
and sold off with the rest of the yield curve in March.
PORTFOLIO REVIEW
Over the last six months the Fund outperformed the Index by maintaining a
neutral duration stance (that is to say, the Fund's portfolio was roughly
equally sensitive to interest rate changes as the Index), while managing
maturities to avoid that 2- to 3-year duration segment where the Fed's action
seemed to have the most impact. In addition, the Fund's longer-dated bonds
appreciated in price as the yield curve flattened toward the end of 2005.
Throughout the last month of 2005, the Fund's overweight position in residential
securities and its underweight position in both commercial mortgage-backed
securities and agencies helped performance. Although corporate bonds generally
performed poorly, it was the Fund's overweight position in insurance, the best
performing corporate sector, coupled with avoiding the worst performing issuers
that contributed to returns. Exposure to the flattening yield curve has been
positive overall and, in early March, the Fund reduced some exposure to realize
profits.
OUTLOOK
We expect that interest rate hikes are nearing an end. While more rate hikes are
still likely, the Federal Reserve has noted that future actions will be
influenced by economic data reports during the coming weeks and months. We see
economic growth in the first part of 2006 on track to be in the 3.5% area. We
expect that short-term interest rates will remain captive to the eventual peak
in the Fed funds rate but long-term interest rates will remain historically low
given the level of both growth and the Fed funds rate. This caused the yield
curve to steepen in the early months of 2006.
Although an interest rate pause is certainly possible, the current state of the
economy and inflation does not necessarily imply a complete halt by the Fed. The
Fund therefore expects to continue to underweight the short end of the yield
curve and look to reduce long duration exposure in the 30-year government sector
in favor of a neutral weighting of the middle of the curve. The recent activity
in the marketplace highlights the great amount of uncertainty investors have and
we feel that volatility, both actual and implied, is due to rise.
- --------------------------------------------------------------------------------
15
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2006 Inception (a)
-------------- -------------
Schroder Total Return Fixed Income Fund --
Investor Shares ................................... 1.00% 1.73%
Advisor Shares .................................... 0.67% 1.42%
<FN>
(a) From commencement of Fund operations on December 31, 2004.
</FN>
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY* % OF INVESTMENTS
- -----------------------------------------------------
FHLMC Gold
5.500%, 12/01/34 7.6%
U.S. Treasury Note
4.875%, 4/30/11 4.7
U.S. Treasury Bond
4.500%, 2/15/16 4.6
U.S. Treasury Note
4.500%, 2/28/11 4.2
Toyota Motor Credit
4.749%, 5/03/06 4.0
*Excludes any Short-Term Investments that are part of the top
5 holdings in the Fund.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- -----------------------------------------------------
U.S. Government Mortgage-Backed
Obligations 23.4%
U.S. Treasury Obligations 21.8
Corporate Obligations 15.6
Mortgage-Backed Obligations 14.1
Commercial Paper 11.9
Collateralized Mortgage Obligations 3.5
Asset-Backed Securities 2.0
Short-Term Investment 7.7
- --------------------------------------------------------------------------------
16
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the six months ended April 30, 2006, we are pleased to report that the
Schroder Municipal Bond Fund rose 1.75% (Investor Shares) and 1.52% (Advisor
Shares), compared to the Lehman 5-Year Municipal Bond Index (the "Index"), a
broad-based basket of intermediate-term municipal debt securities, which rose
0.96%.
The Fund's outperformance was largely due to its high-quality securities, which
generated a higher level of yield and income than the Index. The Fund's
relatively high level of income provided a cushion against declining bond prices
during the reporting period. The municipal bond market performed significantly
better than the taxable markets during the six-month period. The Lehman Brothers
Municipal Bond Index (which contains tax-exempt municipal bonds with maturities
across the yield curve) returned 1.56% for the six-month period while the Lehman
Brothers Aggregate Bond Index (comprised of taxable securities) returned 0.56%
for the period.
MARKET BACKGROUND
In the six-month period, the broad U.S. bond market (up 0.56%, as measured by
the Lehman Aggregate Bond Index) underperformed the stock market (up 9.64%, as
measured by the S&P 500 Index), as investors drove up equity prices late in 2005
and early 2006. The bond market suffered from continued increases in the Fed
funds rate by the Federal Reserve to counteract the possibility of inflation.
Since June of 2004, the Federal Reserve increased the Fed funds rate 15 straight
times--rising from a low of 1.00% to 4.75% by the end of April (and,
subsequently, to 5.00% on May 10, 2006).
Accordingly, rates across the Treasury curve increased, even on the long end as
investors demanded a higher premium for holding longer-term bonds. The yield on
the 2-year Treasury increased by 0.66%--from 4.18% to 4.84% during the reporting
period. The yield of the 10-year Treasury rose by 0.47% from 4.42% to 4.89%. On
the long end of the yield curve, the 30-year Treasury yield increased from 4.16%
to 4.90%, or 0.74% during the same time period.
Municipal yields took their cue from the Treasury market as the yield on a
2-year AAA-rated municipal bond yield rose 0.29%--from 3.24% to 3.53%. The
AAA-rated yield on a 30-year municipal bond remained relatively flat at 4.41%
during the six-month period. By the end of the period under discussion, supply
in the municipal market was down about 40% from record-setting levels in 2005
($408 billion for the total year). Almost half of the securities issued in 2005
were the result of municipalities taking advantage of lower interest rates and
refunding older issues. Supply will continue to decrease as municipalities
exhaust the supply of available issues to refund.
PORTFOLIO REVIEW
In the six months under consideration, the Fund outperformed the Index by
exploiting the inefficiencies in the municipal bond market, which is highly
fragmented in nature and geographically dispersed. Purchasing high quality bonds
that we believed to be undervalued resulted in a higher level of yield
generation and income for the Fund.
A good example is NEW MEXICO STATE SEVERANCE TAX, a utilities bond. When the
Fund added NEW MEXICO STATE to its portfolio the bond was rated AA. During the
period this bond was pre-refunded, thus becoming AAA-rated and backed with U.S.
Treasury issues.
One bond that underperformed during the period was IIS/SYSKA HOLDINGS ENERGY, a
corporate security with a 2008 maturity. Despite being a corporate issue, the
Fund purchased it for the tax-adjusted yield advantage it offered versus
like-dura-tion municipal bonds. IIS/SYSKA HOLDINGS ENERGY is backed by General
Motors bonds and was therefore downgraded during January, 2006.
- --------------------------------------------------------------------------------
17
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
During the six-month period ended April 30, 2006, the Fund maintained duration
similar to the Index's. The Fund also normally maintains a diversified maturity
range, which helps limit the effect when any one segment of the yield curve is
hurt by rising rates, as happened in short- and long-term yields during the
six-month period. The Fund's 47.4% allocation to short-term bonds (three years
maturity or less) helped performance during the period.
OUTLOOK
We expect to continue to stick to our discipline, which seeks to add value
through bottom-up security selection and diversification. Due to the municipal
bond market inefficiencies, we have been able to find what we believe is high
relative value in tax-exempt municipals that are refunded and collateralized and
expect to continue to invest in these types of securities.
PERFORMANCE INFORMATION
One Year Ended Annualized
April 30, 2006 Since Inception(a)
-------------- ------------------
Schroder Municipal Bond Fund --
Investor Shares ...................... 2.89% 3.19%
Advisor Shares ....................... 2.53% 2.88%
(a) From commencement of Fund operations on December 31, 2003.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- -----------------------------------------------------
Insured 29.6%
Housing 11.7
Escrowed to Maturity/Pre-Refunded 7.1
Education 6.8
Federal Agency 6.6
Revenue Bond 5.7
Industrial Development 5.4
Corporate Supported 5.4
SECTOR % OF INVESTMENTS
- -----------------------------------------------------
General Obligation 3.4%
Corporate Obligations 3.4
Tax Increment Financings 2.3
Healthcare 2.1
Financing 1.8
Certificate of Participation 1.0
Transportation 0.6
Short-Term Investment 7.1
- --------------------------------------------------------------------------------
18
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 20, 2006)
PERFORMANCE
In the six months ended April 30, 2006, we are pleased to report that the
Schroder Short-Term Municipal Bond Fund rose 1.38% (Investor Shares) and 1.25%
(Advisor Shares), compared to the Lehman 1-Year Municipal Bond Index (the
"Index"), a broad-based basket of short-term municipal debt securities, which
rose 0.98%.
The Fund's outperformance was largely due to its high-quality securities which
generated a higher level of yield and income than the Index. The Fund's superior
level of income provided a cushion against declining bond prices during the
reporting period. The municipal bond market performed significantly better than
the taxable markets during the six-month period. The Lehman Brothers Municipal
Bond Index (which contains tax-exempt municipal bonds with maturities across the
yield curve) returned 1.56% for the six-month period while the Lehman Brothers
Aggregate Bond Index (comprised of taxable securities) returned 0.56% for the
period.
MARKET BACKGROUND
In the six-month period, the broad U.S. bond market (up 0.56%, as measured by
the Lehman Aggregate Bond Index) underperformed the stock market (up 9.64%, as
measured by the S&P 500 Index), as investors drove up equity prices late in 2005
and early 2006. The bond market suffered from continued increases in the Fed
funds rate by the Federal Reserve to counteract the possibility of inflation.
Since June of 2004, the Federal Reserve increased the Fed funds rate 15 straight
times--rising from a low of 1.00% to 4.75% (and, subsequently, to 5.00% on
May 10, 2006).
Accordingly, rates across the Treasury curve increased, even on the long end as
investors demanded a higher premium for holding longer-term bonds. The yield on
the 2-year Treasury increased by 0.66%--from 4.18% to 4.84% during the reporting
period. The yield of the 10-year Treasury rose by 0.47% from 4.42% to 4.89%.
Municipal yields took their cue from the Treasury market as the yield on a
2-year AAA-rated municipal bond yield rose 0.29%--from 3.24% to 3.53%. By the
end of the period under discussion, supply in the municipal market was down
significantly from record-setting levels in 2005 ($408 billion for the total
year). Almost half of the 2005 issuance arose from municipalities taking
advantage of lower interest rates and refunding older issues. Supply will
continue to decrease as municipalities exhaust the supply of available issues to
refund.
PORTFOLIO REVIEW
In the six-month period, the Fund outperformed the Index by exploiting the
inefficiencies in the municipal bond market, which is highly fragmented in
nature and geographically dispersed. Purchasing high quality bonds that we
believed to be undervalued resulted in a higher level of yield generation and
income for the Fund.
A good example of the Fund's focus on credit enhancement through selecting
issues we judge to have high credit quality is the nature of its holdings in the
hurricane-devastated Gulf Coast region. The Fund holds just over $4 million in
total municipal debt in the Gulf Coast region, most of which was purchased
before the hurricanes. The bonds we hold in the Fund were not affected by the
hurricanes and are mostly secured by third-party guarantees through insurance, a
corporate guaranty, underlying mortgages, a bank letter of credit, secured by
U.S. Treasuries or a federal government agency.
One bond that underperformed during the period was IIS/SYSKA HOLDINGS ENERGY, a
corporate security with a 2008 maturity. Despite being a corporate issue, the
Fund purchased it for the tax-adjusted yield advantage it offered versus
like-dura-tion municipal bonds. IIS/SYSKA HOLDINGS ENERGY is backed by General
Motors bonds and was therefore downgraded during January of 2006.
- --------------------------------------------------------------------------------
19
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
During the six-month period ended April 30, the Fund maintained its duration
similar to the Index's. Excess return is generated by purchasing
higher-yielding, undervalued municipal securities. The Fund also maintains a
diversified maturity range, which helps limit the effect when any one segment of
the yield curve is hurt by rising rates, as happened in short-and long-term
yields during the six-month period. The Fund's 86.8% allocation to short-term
bonds (three years maturity or less) helped performance over the past six
months.
OUTLOOK
We expect to continue to stick to our discipline, which seeks to add value
through bottom-up security selection and diversification. Due to the municipal
bond market inefficiencies, we have been able to find what we believe is high
relative value in tax-exempt municipals that are refunded and collateralized and
expect to continue to invest in these types of securities.
PERFORMANCE INFORMATION
One Year Ended Annualized
April 30, 2006 Since Inception(a)
-------------- ------------------
Schroder Short-Term Municipal Bond Fund --
Investor Shares ................................. 2.73% 2.19%
Advisor Shares .................................. 2.47% 1.94%
<FN>
(a) From commencement of Fund operations on December 31, 2003.
</FN>
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- -----------------------------------------------------
Federal Agency 20.4%
Insured 14.5
Industrial Development 9.8
Housing 8.3
Escrowed to Maturity/Pre-Refunded 7.6
Corporate Supported 5.6
Revenue Bond 4.6
General Obligation 4.3
Corporate Obligations 3.5
Utilities 3.5
SECTOR % OF INVESTMENTS
- -----------------------------------------------------
Healthcare 2.1%
Community Development 1.6
Education 1.6
Transportation 1.3
Tax Increment Financings 1.2
Economic Development 0.8
Special Assessment 0.5
Sanitation 0.4
Special Obligation 0.2
Short-Term Investments 8.2
- --------------------------------------------------------------------------------
20
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 98.4%
BERMUDA - 1.1%
BUSINESS SERVICES & COMPUTER
SERVICES - 0.2%
126,287 Accenture Class A 3,671,163
--------------
DIVERSIFIED INDUSTRIAL - 0.3%
180,970 Tyco International 4,768,560
--------------
INTERNATIONAL OIL, CRUDE &
PETROLEUM PRODUCTS - 0.2%
62,018 Nabors Industries (1) 2,315,132
--------------
MACHINERY & ENGINEERING
SERVICES - 0.0%
200 Ingersoll-Rand Class A 8,750
--------------
MULTI-LINE PROPERTY & CASUALTY
INSURANCE - 0.4%
83,500 ACE 4,637,590
16,966 Arch Capital Group (1) 1,030,684
--------------
5,668,274
--------------
Total Bermuda 16,431,879
--------------
CANADA - 5.5%
AUTO COMPONENTS - 0.1%
22,606 Magna International Class A 1,773,079
--------------
BUSINESS SERVICES & COMPUTER
SERVICES - 0.1%
32,900 Cognos (1) 1,227,678
11,000 MacDonald Dettwiler &
Associates (1) 502,013
--------------
1,729,691
CHEMICALS - 0.2%
72,200 Agrium 1,867,186
22,911 Methanex 507,425
--------------
2,374,611
COMMERCIAL & OTHER BANKS - 0.8%
30,844 Bank of Montreal 1,784,950
57,542 Canadian Imperial
Bank of Commerce 4,260,940
55,955 National Bank of Canada 3,121,463
59,264 Royal Bank of Canada 2,537,082
24,020 Toronto-Dominion Bank 1,342,326
--------------
13,046,761
COMPUTERS/TELECOMMUNICATIONS
& OFFICE EQUIPMENT - 0.1%
10,489 Research In Motion (1) 804,110
--------------
Shares Value $
------ -------
DIVERSIFIED CONSUMER GOODS/
SERVICES - 0.1%
42,527 Cinram International 1,107,414
--------------
ELECTRIC, GAS UTILITIES & TELEPHONE - 0.5%
9,419 Atco Class I 285,899
83,449 BCE 2,057,289
2,197 Canadian Utilities Class A 74,020
26,112 Enbridge 774,598
12,976 Manitoba Telecom Services 513,350
49,999 TELUS (Non-Voting) 2,067,073
71,342 TransCanada 2,108,020
--------------
7,880,249
FINANCIAL INSTITUTION & SERVICES - 0.8%
95,988 CI Fund Management 2,759,816
63,741 Great-West Lifeco 1,683,789
53,258 IGM Financial 2,518,734
32,153 Laurentian Bank of Canada 937,400
97,921 Power Corp. of Canada 2,787,353
800 Power Financial 24,283
25,565 TSX Group 1,111,820
--------------
11,823,195
FOOD & GROCERY PRODUCTS - 0.1%
26,533 George Weston 2,092,249
--------------
HEALTH & PERSONAL CARE - 0.0%
2,814 Biovail 73,277
--------------
INSURANCE - 0.0%
539 Northbridge Financial (1) 15,724
--------------
INTERNATIONAL OIL, CRUDE &
PETROLEUM PRODUCTS - 1.1%
23,412 Canadian Natural Resources 1,407,862
15,244 EnCana 762,268
39,578 Imperial Oil 4,302,403
57,600 Penn West Energy Trust 2,230,293
105,764 Petro-Canada 5,205,387
18,542 Precision Drilling Trust 658,718
45,484 Shell Canada 1,707,431
11,400 Talisman Energy 644,113
--------------
16,918,475
MEDIA - 0.4%
118,253 Shaw Communications Class B 3,185,159
57,600 Thomson 2,302,969
--------------
5,488,128
MINING, METALS & MINERALS - 0.5%
29,099 Agnico-Eagle Mines 1,067,614
80,500 AUR Resources 1,177,785
3,939 Goldcorp 138,350
59,361 Inco 3,350,245
551 Inmet Mining 19,944
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
21
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
MINING, METALS & MINERALS - (CONTINUED)
7,064 IPSCO 729,346
29,997 Teck Cominco Class B 2,069,055
--------------
8,552,339
REAL ESTATE - 0.0%
13,600 Summit REIT 304,372
--------------
RETAIL TRADE - 0.4%
58,428 Alimentation Couche Tard
Class B 1,339,008
30,705 Canadian Tire Class A 1,730,745
50,582 Loblaw 2,594,506
--------------
5,664,259
TRANSPORTATION & STORAGE - 0.3%
107,729 Canadian National Railway 4,832,622
--------------
Total Canada 84,480,555
--------------
CAYMAN ISLANDS - 0.6%
AEROSPACE & DEFENSE - 0.2%
30,320 Garmin 2,618,435
--------------
COMPUTERS/TELECOMMUNICATIONS
& OFFICE EQUIPMENT - 0.2%
97,830 Seagate Technology 2,598,365
--------------
MULTI-LINE PROPERTY &
CASUALTY INSURANCE - 0.2%
56,757 XL Capital Class A 3,739,719
--------------
Total Cayman Islands 8,956,519
--------------
PUERTO RICO - 0.0%
COMMERCIAL & OTHER BANKS - 0.0%
500 Doral Financial 3,955
35,920 Popular 742,826
--------------
Total Puerto Rico 746,781
--------------
UNITED STATES - 91.2%
AEROSPACE & DEFENSE - 2.4%
12,901 Alliant Techsystems (1) 1,031,951
18,400 BE Aerospace (1) 478,952
45,592 Boeing 3,804,652
80,648 General Dynamics 5,292,122
18,734 Honeywell International 796,195
32,380 L-3 Communications Holdings 2,645,446
85,713 Lockheed Martin 6,505,617
30,779 Northrop Grumman 2,059,115
22,120 Orbital Sciences (1) 346,178
36,800 Textron 3,310,160
6,647 United Industrial 436,708
152,213 United Technologies 9,560,498
--------------
36,267,594
--------------
Shares Value $
------ -------
AUTO COMPONENTS - 0.4%
17,500 Autoliv 967,750
57,220 Johnson Controls 4,666,291
9,326 Polaris Industries 446,716
--------------
6,080,757
AUTOMOBILES - 0.4%
181,376 Ford Motor 1,260,563
47,788 Harley-Davidson 2,429,542
41,220 Paccar 2,964,955
--------------
6,655,060
BEVERAGE & TOBACCO - 3.0%
174,082 Altria Group 12,735,839
81,345 Anheuser-Busch 3,626,360
335,144 Coca-Cola 14,062,642
71,485 Coca-Cola Enterprises 1,396,102
100,422 Pepsi Bottling Group 3,223,546
174,323 PepsiCo 10,152,572
210 Seaboard 323,820
31,200 UST 1,370,616
--------------
46,891,497
BUILDING & CONSTRUCTION - 1.2%
7,768 Beazer Homes USA 447,670
20,751 Brookfield Homes 966,997
24,286 Centex 1,350,302
86,532 DR Horton 2,597,691
13,800 Drew Industries (1) 495,972
2,013 Eagle Materials 133,361
20,389 Florida Rock Industries 1,271,662
39,635 KB Home 2,440,327
49,765 Lennar Class A 2,733,591
136,338 Masco 4,349,182
14,035 Universal Forest Products 1,049,397
9,521 USG (1) 1,018,461
--------------
18,854,613
BUSINESS SERVICES & COMPUTER
SERVICES - 5.7%
20,300 Adobe Systems (1) 795,760
14,800 Akamai Technologies (1) 498,612
39,300 aQuantive (1) 984,858
51,089 Avery Dennison 3,193,063
74,716 Check Point Software
Technologies (1) 1,445,755
25,335 Cognizant Technology
Solutions Class A (1) 1,611,559
54,386 Computer Sciences (1) 3,184,300
16,200 Digital River (1) 705,348
85,040 Earthlink (1) 773,014
28,465 Electronic Data Systems 770,832
39,208 Fair Isaac 1,455,009
23,846 Google Class A (1) 9,966,197
195,168 International Business
Machines 16,070,133
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
22
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
BUSINESS SERVICES & COMPUTER
SERVICES - (CONTINUED)
20,264 Kronos (1) 924,849
47,400 McAfee (1) 1,236,666
11,400 Mercury Interactive (1) 409,830
1,190,560 Microsoft 28,752,024
5,622 MicroStrategy Class A (1) 527,006
1,001 Netgear (1) 22,473
92,039 Novell (1) 756,561
369,697 Oracle (1) 5,393,879
30,900 Premiere Global Services (1) 241,329
100 ProQuest (1) 1,570
48,233 Republic Services 2,122,734
20,579 United Online 265,263
69,607 Waste Management 2,607,478
10,800 West (1) 500,256
68,781 Yahoo! (1) 2,254,641
--------------
87,470,999
CHEMICALS - 1.4%
32,822 3M 2,803,984
60,462 Air Products & Chemicals 4,142,856
10,700 Airgas 432,815
151,063 Dow Chemical 6,134,668
71,093 EI du Pont de Nemours 3,135,201
57,182 International Flavors &
Fragrances 2,020,240
46,375 Lyondell Chemical 1,117,638
9,800 Nuco2 (1) 280,672
2,587 Olin 53,163
200 Praxair 11,226
3,137 Rohm & Haas 158,732
17,300 Schulman 414,162
16,988 Westlake Chemical 515,586
--------------
21,220,943
COMMERCIAL & OTHER BANKS - 9.6%
572,266 Bank of America 28,567,519
120,264 Bank of New York 4,227,280
99,579 BB&T 4,275,922
590,599 Citigroup 29,500,420
928 Citizens Banking 24,267
53,567 Comerica 3,046,355
102,271 Fifth Third Bancorp 4,133,794
98,684 First Niagara Financial
Group 1,381,576
16,084 Fremont General 357,708
13,024 Huntington Bancshares 314,530
414,197 JPMorgan Chase 18,796,260
96,600 Keycorp 3,692,052
900 Partners Trust Financial
Group 10,620
109,071 Regions Financial 3,982,182
19,300 Sky Financial Group 498,905
8,644 South Financial Group 234,512
Shares Value $
------ -------
81,647 SunTrust Banks 6,313,762
286,775 U.S. Bancorp 9,016,206
134,073 Wachovia 8,024,269
166,454 Washington Mutual 7,500,417
216,845 Wells Fargo 14,895,083
--------------
148,793,639
COMPUTERS/TELECOMMUNICATIONS
& OFFICE EQUIPMENT - 5.0%
15,513 American Tower Class A (1) 529,614
82,278 Apple Computer (1) 5,791,548
293,234 AT&T 7,685,663
83,048 Avaya (1) 996,576
8,700 Black Box 408,204
725,605 Cisco Systems (1) 15,201,425
124,684 Corning (1) 3,445,019
204,454 Dell (1) 5,356,695
111,218 EMC (1) 1,502,555
57,200 Foundry Networks (1) 812,812
222,311 Hewlett-Packard 7,218,438
70,871 Juniper Networks (1) 1,309,696
22,491 Komag (1) 945,522
47,030 Lexmark International
Class A (1) 2,290,361
365,470 Lucent Technologies (1) 1,019,661
324,954 Motorola 6,937,768
65,800 Network Appliance (1) 2,439,206
40,900 Nextel Partners Class A (1) 1,159,106
25,856 NII Holdings (1) 1,548,774
39,000 Palm (1) 881,400
196,182 Qualcomm 10,071,984
5,077 SpectraLink 60,569
6,800 Telephone & Data Systems 256,360
1,231 Ulticom (1) 12,347
--------------
77,881,303
DIVERSIFIED CONSUMER GOODS/
SERVICES - 0.7%
156,699 Archer-Daniels-Midland 5,694,442
34,300 Bunge 1,829,905
4,401 Coach (1) 145,321
17,156 Liz Claiborne 669,942
32,741 Nike Class B 2,679,523
--------------
11,019,133
DIVERSIFIED INDUSTRIAL MANUFACTURING - 0.3%
610 Blyth 12,535
3,421 Encore Wire (1) 143,443
31,568 Owens-Illinois (1) 577,063
43,300 Rockwell Automation 3,137,518
--------------
3,870,559
ELECTRIC, GAS UTILITIES & TELEPHONE - 4.3%
78,011 Alltel 5,021,568
114,717 American Electric Power 3,838,431
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
23
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
ELECTRIC, GAS UTILITIES &
TELEPHONE - (CONTINUED)
14,400 Atmos Energy 382,176
29,000 Avista 609,290
127,808 BellSouth 4,317,354
56,313 CenturyTel 2,123,000
58,572 CMS Energy (1) 780,179
176,586 Duke Energy 5,142,184
400 Energy Transfer Partners 16,064
13,900 Great Plains Energy 392,675
96,868 KeySpan 3,911,530
40,517 Kinder Morgan 3,566,306
32,910 Nicor 1,303,565
33,347 NiSource 703,955
25,600 OGE Energy 772,096
78,445 Oneok 2,589,469
87,800 PG&E 3,497,952
51,183 Progress Energy 2,190,632
274,100 Qwest Communications
International (1) 1,839,211
149,525 Southern 4,819,191
214,217 Sprint 5,312,582
20,990 Telephone & Data Systems 822,808
34,400 Valor Communications Group 448,920
280,490 Verizon Communications 9,264,585
42,051 WPS Resources 2,102,130
57,327 Xcel Energy 1,080,041
--------------
66,847,894
ELECTRICAL EQUIPMENT - 0.8%
30,565 Amphenol Class A 1,766,657
32,900 Eaton 2,521,785
55,466 Emerson Electric 4,711,837
33,905 Energizer Holdings (1) 1,734,241
16,669 General Cable (1) 526,240
24,275 Thomas & Betts (1) 1,382,461
--------------
12,643,221
ELECTRONICS & INSTRUMENT/CONTROL
EQUIPMENT - 3.6%
25,175 Advanced Micro Devices (1) 814,411
104,908 Altera (1) 2,291,191
63,791 Analog Devices 2,418,955
265,272 Applied Materials (1) 4,761,632
26,618 Arrow Electronics (1) 963,572
16,786 Broadcom Class A (1) 690,072
16,808 Ditech Communications (1) 158,331
3,728 Freescale Semiconductor
Class B (1) 118,066
47,873 Harris 2,229,446
725,420 Intel 14,493,891
33,209 InterVoice (1) 238,773
56,980 Kla-Tencor 2,744,157
47,425 Lam Research (1) 2,318,134
Shares Value $
------ -------
80,000 Linear Technology 2,840,000
1,823 Mattson Technology (1) 20,946
60,299 Maxim Integrated Products 2,126,143
30,501 MEMC Electronic Materials (1) 1,238,341
61,426 Microchip Technology 2,288,733
300 Micron Technology (1) 5,091
75,589 National Semiconductor 2,266,158
19,275 Pitney Bowes 806,659
31,011 Plantronics 1,162,912
8,000 Raven Industries 324,240
6,000 Rogers (1) 370,200
43,100 Silicon Image (1) 439,620
152,295 Texas Instruments 5,286,159
24,576 WESCO International (1) 1,843,200
--------------
55,259,033
ENTERTAINMENT, LEISURE & TOYS - 1.6%
11,444 Ameristar Casinos 281,637
49,168 Brinker International 1,925,419
20,400 CBRL Group 830,484
700 Cedar Fair LP 19,705
158,226 Cendant 2,757,879
63,544 Darden Restaurants 2,516,342
14,215 Domino's Pizza 374,281
25,931 GTECH Holdings 885,803
106,300 International Game Technology 4,031,959
21,300 Jack in the Box (1) 890,340
103,236 Mattel 1,670,359
53,044 McDonald's 1,833,731
16,700 Regal Entertainment Group
Class A 351,034
38,248 Royal Caribbean Cruises 1,598,384
29,800 Ruby Tuesday 887,146
113,800 Starbucks (1) 4,241,326
--------------
25,095,829
FINANCIAL INSTITUTION & SERVICES - 8.3%
11,143 Accredited Home Lenders
Holding (1) 643,954
10,115 Advanta Class B 385,988
750 Affiliated Managers Group (1) 75,975
103,933 American Express 5,592,635
25,616 AmeriCredit (1) 775,652
23,803 Bear Stearns 3,392,166
49,750 Capital One Financial 4,310,340
44,975 CapitalSource 1,056,913
197 Chicago Mercantile Exchange
Holdings 90,226
65,148 CIT Group 3,518,643
142,143 Fannie Mae 7,192,436
25,497 First American 1,086,172
129,238 First Data 6,163,360
47,280 Fiserv (1) 2,131,382
8,506 Franklin Resources 792,079
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
24
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
FINANCIAL INSTITUTION &
SERVICES - (CONTINUED)
111,167 Freddie Mac 6,787,857
1,038,164 General Electric 35,910,093
54,503 Goldman Sachs Group 8,736,286
119,794 H&R Block 2,734,897
30,256 IndyMac Bancorp 1,461,970
29,381 Legg Mason 3,481,061
46,561 Lehman Brothers Holdings 7,037,695
29,786 Mellon Financial 1,120,847
53,563 Merrill Lynch 4,084,714
600 Moody's 37,206
154,395 Morgan Stanley 9,927,599
89,012 Paychex 3,595,195
48,321 T Rowe Price Group 4,068,145
92,821 TD Ameritrade Holding 1,722,758
--------------
127,914,244
FOOD & GROCERY PRODUCTS - 1.0%
67,272 Dean Foods (1) 2,664,644
70,806 General Mills 3,493,568
41,238 Kellogg 1,909,732
167,421 Sara Lee 2,991,813
135,929 Sysco 4,062,918
14,742 Wm. Wrigley Jr. 693,906
3,686 Wm. Wrigley Jr. Class B 173,771
--------------
15,990,352
FORESTRY & PAPER PRODUCTS - 0.4%
65,092 Louisiana-Pacific 1,795,237
61,721 Weyerhaeuser 4,349,479
--------------
6,144,716
HEALTH & PERSONAL CARE - 14.2%
212,255 Abbott Laboratories 9,071,779
29,779 Aetna 1,146,491
20,412 Alcon 2,076,104
35,651 Allergan 3,662,071
40,172 AmerisourceBergen 1,733,422
149,486 Amgen (1) 10,120,202
56,469 Applera - Applied Biosystems
Group 1,628,566
123,141 Baxter International 4,642,416
83,358 Becton Dickinson 5,254,888
54,100 Biogen Idec (1) 2,426,385
317 Biomet (1) 11,786
150,928 Boston Scientific (1) 3,507,567
312,942 Bristol-Myers Squibb 7,942,468
92,884 Cardinal Health 6,255,737
84,070 Caremark Rx (1) 3,829,388
57,694 Celgene (1) 2,432,379
48,105 Clorox 3,087,379
101,158 Colgate-Palmolive 5,980,461
Shares Value $
------ -------
29,508 Coventry Health Care (1) 1,465,662
13,884 DJ Orthopedics (1) 552,028
167,618 Eli Lilly 8,870,345
39,055 Express Scripts (1) 3,051,758
54,882 Genentech (1) 4,374,644
34,067 Genzyme (1) 2,083,538
76,859 Gilead Sciences (1) 4,419,392
80,665 HCA 3,540,387
69,417 Health Management Associates
Class A 1,437,626
53,445 Hospira (1) 2,060,305
229,798 Johnson & Johnson 13,468,461
36,100 Manor Care 1,582,985
64,300 McKesson 3,124,337
155,277 Medtronic 7,782,483
318,809 Merck 10,973,406
5,799 Meridian Bioscience 150,542
865,318 Pfizer 21,918,505
401,841 Procter & Gamble 23,391,165
26,200 PSS World Medical (1) 472,648
42,725 Quest Diagnostics 2,381,064
9,903 Sierra Health Services (1) 388,297
58,016 St. Jude Medical (1) 2,290,472
52,937 Stryker 2,315,994
7,600 Sybron Dental Specialties (1) 357,504
193,602 UnitedHealth Group 9,629,763
35,059 WellPoint (1) 2,489,189
200,385 Wyeth 9,752,738
--------------
219,134,727
HOUSEHOLD DURABLES & APPLIANCES - 0.2%
37,405 Whirlpool 3,357,099
--------------
INSURANCE-LIFE & AGENTS/BROKERS - 1.8%
107,087 Aflac 5,090,916
31,400 Assurant 1,512,538
3,396 Commerce Group 197,002
102,099 Fidelity National Financial 4,286,116
13,568 Mercury General 724,124
146,445 Metlife 7,629,785
39,318 MGIC Investment 2,779,783
12,357 Nationwide Financial Services
Class A 542,225
66,077 Prudential Financial 5,162,596
3,558 Selective Insurance Group 198,038
--------------
28,123,123
INTERNATIONAL OIL, CRUDE & PETROLEUM
PRODUCTS - 9.1%
17,973 Amerada Hess 2,574,992
52,032 Anadarko Petroleum 5,453,994
73,459 BJ Services 2,795,115
193,246 Chevron 11,791,871
30,811 Cimarex Energy (1) 1,323,332
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
25
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
INTERNATIONAL OIL, CRUDE & PETROLEUM
PRODUCTS - (CONTINUED)
195,709 ConocoPhillips 13,092,932
61,471 Devon Energy 3,695,022
41,625 EOG Resources 2,923,324
616,902 Exxon Mobil 38,914,178
10,074 Forest Oil (1) 368,406
41,016 GlobalSantaFe 2,510,589
24,800 Grant Prideco (1) 1,269,760
67,934 Halliburton 5,309,042
10,513 Kerr-McGee 1,049,828
12,958 Lone Star Technologies (1) 686,904
77,863 Marathon Oil 6,179,208
21,747 Maverick Tube (1) 1,183,472
62,336 Noble Energy 2,803,873
59,316 Occidental Petroleum 6,094,126
41,678 Pioneer Natural Resources 1,784,652
27,953 Pogo Producing 1,388,985
46,253 Range Resources 1,227,092
81,568 Schlumberger 5,639,611
4,093 SEACOR Holdings (1) 362,026
65,996 Smith International 2,787,011
30,000 Sunoco 2,431,200
18,009 Transocean (1) 1,459,990
31,800 Ultra Petroleum (1) 2,033,928
94,714 Valero Energy 6,131,784
20,100 Veritas DGC (1) 963,192
76,360 Weatherford International (1) 4,041,735
8,310 World Fuel Services 332,732
--------------
140,603,906
MACHINERY & ENGINEERING SERVICES - 1.5%
107,326 Caterpillar 8,128,871
12,900 Cooper Industries Class A 1,179,705
10,300 Crane 435,175
23,073 Cummins 2,411,129
59,468 Deere 5,220,101
1,495 Franklin Electric 87,203
11,300 Jacobs Engineering Group (1) 934,510
11,788 Joy Global 774,354
12,900 Mueller Industries 488,652
24,063 Parker Hannifin 1,950,306
32,700 Stanley Works 1,708,575
2,105 W.W. Grainger 161,917
--------------
23,480,498
MEDIA - 2.6%
115,157 Clear Channel Communications 3,285,429
35,300 Dow Jones 1,305,041
88,354 EchoStar Communications
Class A (1) 2,730,139
21,849 Emmis Communications
Class A (1) 268,743
73,002 Gannett 4,015,110
Shares Value $
------ -------
16,069 John H. Harland 666,060
4,000 John Wiley & Sons Class A 146,560
25,547 McGraw-Hill 1,421,946
11,674 Mediacom Communications
Class A (1) 80,200
24,700 Meredith 1,225,120
234,300 News Class A (1) 4,020,588
43,510 Omnicom Group 3,916,335
603,310 Time Warner 10,497,594
94,963 Tribune 2,737,783
131,424 Walt Disney (1) 3,674,615
--------------
39,991,263
MINING, METALS & MINERALS - 1.0%
66,353 Newmont Mining 3,872,361
3,653 NS Group (1) 182,723
38,565 Nucor 4,196,643
48,023 Phelps Dodge 4,139,102
16,536 Plains All American
Pipeline LP 721,797
21,535 Silgan Holdings 836,204
11,816 Titanium Metals (1) 846,617
--------------
14,795,447
MISCELLANEOUS BUSINESS SERVICES - 0.1%
15,896 Manpower 1,035,624
--------------
MULTI-LINE PROPERTY & CASUALTY
INSURANCE - 2.9%
44,787 Allstate 2,530,017
5,400 American Financial Group 239,112
326,595 American International Group 21,310,324
23 Berkshire Hathaway Class A (1) 2,047,000
91,942 Chubb 4,738,691
66,551 Cincinnati Financial 2,837,735
116,314 Genworth Financial Class A 3,861,625
46,597 Progressive 5,057,172
42,148 St. Paul Travelers 1,855,776
8,575 Zenith National Insurance 378,329
--------------
44,855,781
REAL ESTATE - 1.4%
1,512 Alexandria Real Estate
Equities 136,987
30,306 Boston Properties 2,675,110
27,585 CB Richard Ellis Group
Class A (1) 2,424,446
59,270 Duke Realty 2,098,158
42,400 General Growth Properties 1,990,680
16,921 Jones Lang LaSalle 1,434,224
4,200 Kimco Realty 155,946
44,525 Maguire Properties 1,512,069
19,794 Omega Healthcare Investors 253,165
28,900 Public Storage 2,221,832
16,552 Simon Property Group 1,355,278
47,220 Vornado Realty Trust 4,516,121
--------------
20,774,016
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
26
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
RETAIL TRADE - 4.9%
27,889 Best Buy 1,580,191
96,258 Costco Wholesale 5,239,323
36,500 Dick's Sporting Goods (1) 1,538,475
53,143 Dollar General 927,877
46,770 Dollar Tree Stores (1) 1,219,294
53,118 eBay (1) 1,827,790
38,578 Family Dollar Stores 964,450
275,555 Home Depot 11,002,911
40,000 JC Penney 2,618,400
116,912 Lowe's 7,371,302
119,000 Limited Brands 3,051,160
12,102 MSC Industrial Direct
Class A 627,610
73,090 Nordstrom 2,801,540
88,144 Office Depot (1) 3,576,883
8,633 Pantry (1) 571,418
74,749 Sherwin-Williams 3,807,714
760 Staples 20,072
156,838 Target 8,328,098
97,907 TJX 2,362,496
20,400 United Auto Group 862,920
258,980 Wal-Mart Stores 11,661,869
59,522 Walgreen 2,495,757
25,159 Whole Foods Market 1,544,259
--------------
76,001,809
TRANSPORTATION & STORAGE - 1.4%
3,234 Amerco (1) 337,759
34,457 FedEx 3,967,035
8,321 General Maritime 276,424
57,547 JB Hunt Transport Services 1,371,345
62,764 Knight Transportation 1,225,781
34,079 Mesa Air Group (1) 358,852
16,986 Overseas Shipholding Group 829,426
10,204 Pacer International 349,895
12,530 SCS Transportation (1) 329,163
33,500 Skywest 789,595
48,716 Swift Transportation (1) 1,459,044
116,834 United Parcel Service
Class B 9,471,732
62,122 Werner Enterprises 1,191,500
--------------
21,957,551
--------------
Total United States 1,409,012,230
--------------
TOTAL COMMON STOCK
(Cost $1,383,341,258) 1,519,627,964
--------------
Principal
Amount $ Value $
--------- -------
SHORT-TERM
INVESTMENTS - 1.5%
1,294 JPMorgan Chase Time Deposit,
4.29% 1,294
Shares
--------
11,917,000 SEI Daily Income Trust Money
Market Fund, Class A,
4.81% (2) 11,917,000
12,154,300 SEI Daily Income Trust
Prime Obligations Fund,
Class A, 4.80% (2) 12,154,300
--------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $24,072,594) 24,072,594
--------------
TOTAL
INVESTMENTS - 99.9%
(Cost $1,407,413,852) 1,543,700,558
--------------
OTHER ASSETS LESS
LIABILITIES - 0.1% 791,847
--------------
NET ASSETS - 100.0% $1,544,492,405
==============
(1) Denotes non-income producing security.
(2) Rate shown is the 7-day effective yield as of April 30, 2006.
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
- --------------------------------------------------------------------------------
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding at April 30, 2006:
NUMBER NET
OF EXPIRATION UNREALIZED
CONTRACTS VALUE DATE APPRECIATION
- ------------------------------------------------------
LONG:
S&P/TSE
60 Index 116 $14,260,474 June-06 $166,061
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund had the following forward foreign currency contracts outstanding at
April 30, 2006:
UNDERLYING NET
CONTRACT FACE AMOUNT UNREALIZED
DATE CURRENCY UNITS OF VALUE APPRECIATION*
- ------------------------------------------------------
7/19/06 Canadian 8,689,551 $7,655,992 $137,002
Dollar
*Does not include foreign currency spot contracts purchased with unrealized
appreciation of $2,912.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
27
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNTIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 88.4%
AUTOS & TRANSPORTATION - 2.4%
44,300 Aviall (1) 1,670,110
51,300 Kansas City Southern (1) 1,246,590
92,300 Republic Airways Holdings (1) 1,569,100
--------------
4,485,800
BUSINESS SERVICES - 6.6%
17,600 Aaron Rents 472,736
57,400 ABM Industries 987,280
17,600 Bright Horizons Family
Solutions (1) 699,072
43,400 Clear Channel Outdoor
Holdings Class A (1) 1,024,240
15,300 DiamondCluster
International (1) 158,202
13,400 Euronet Worldwide (1) 478,916
118,600 Gartner (1) 1,662,772
26,750 H&E Equipment Services (1) 933,843
20,889 HUB Group Class A (1) 1,027,112
16,738 Intrawest 600,894
16,700 Navigant Consulting (1) 352,036
43,200 Perini (1) 1,297,296
16,300 Pinnacle Entertainment (1) 444,990
120,300 RightNow Technologies (1) 2,226,753
--------------
12,366,142
CONSUMER DISCRETIONARY - 11.4%
20,900 Brown Shoe 794,827
61,800 Claire's Stores 2,176,596
17,200 CSK Auto (1) 221,020
96,600 Educate (1) 796,950
21,800 Education Management (1) 925,628
65,300 Flowers Foods 1,834,277
37,600 Gevity HR 965,944
20,995 Orient-Express Hotels
Class A 860,795
2,300 PETCO Animal Supplies (1) 50,370
14,500 PF Chang's China Bistro (1) 617,845
33,700 Rare Hospitality
International (1) 1,048,744
22,000 Regis 771,540
11,700 Ritchie Brothers Auctioneers 630,630
116,200 Scientific Games Class A (1) 4,426,058
25,900 Standard Parking (1) 699,818
93,200 Valueclick (1) 1,570,420
38,000 Waste Connections (1) 1,463,000
47,100 Watson Wyatt Worldwide
Class A 1,552,887
--------------
21,407,349
CONSUMER STAPLES - 0.7%
33,700 Ralcorp Holdings (1) 1,256,336
--------------
Shares Value $
------ -------
FINANCIAL SERVICES - 13.4%
45,850 Annaly Mortgage Management 617,600
95,605 Apollo Investment (2) 1,787,814
29,100 Argonaut Group (1) 1,015,590
18,800 Bank of Hawaii 1,021,028
22,900 Boston Private Financial
Holdings 761,425
22,624 Brandywine Realty Trust 640,485
15,900 Coinstar (1) 433,593
180,500 Conseco (1) 4,557,625
34,543 Cullen/Frost Bankers 1,999,349
69,700 Encore Capital Group (1) 1,029,469
17,608 Health Care REIT 612,758
146,864 Max Re Capital 3,598,168
47,830 Platinum Underwriters
Holdings 1,318,673
60,400 Reinsurance Group of America 2,905,240
110,000 TAC Acquisition (1) 775,500
35,463 United Dominion Realty Trust 964,239
25,000 Westamerica Bancorporation 1,278,500
--------------
25,317,056
HEALTH CARE - 14.5%
15,700 Adams Respiratory
Therapeutics (1) 673,373
10,200 Advanced Medical Optics (1) 475,320
94,600 Allscripts Healthcare
Solutions (1) 1,611,038
85,500 Angiotech Pharmaceuticals (1) 1,297,890
45,800 Array Biopharma (1) 339,378
32,800 BioMarin Pharmaceuticals (1) 403,440
61,800 Cepheid (1) 562,998
15,350 DaVita (1) 863,591
5,000 DexCom (1) 125,800
22,040 Dialysis Corp. of America (1) 278,145
21,500 Digene (1) 888,165
56,393 Diversa (1) 593,818
18,000 DJ Orthopedics (1) 715,680
67,500 Endo Pharmaceuticals
Holdings (1) 2,122,875
87,800 First Horizon
Pharmaceutical (1) 1,955,306
26,000 Human Genome Sciences (1) 296,660
44,612 Immucor (1) 1,295,979
105,900 Lexicon Genetics (1) 555,975
56,100 Medicis Pharmaceutical
Class A 1,844,568
40,600 Nuvelo (1) 664,622
13,100 PolyMedica 541,161
16,200 Psychiatric Solutions (1) 535,572
126,200 Salix Pharmaceuticals (1) 1,728,940
64,700 Senomyx (1) 925,857
58,900 Serologicals (1) 1,832,968
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
28
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNTIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
HEALTH CARE - (CONTINUED)
33,200 Sybron Dental Specialties (1) 1,561,728
38,634 Symbion (1) 888,968
36,573 United Surgical Partners
International (1) 1,207,275
11,900 WellCare Health Plans (1) 498,372
--------------
27,285,462
MATERIALS & PROCESSING - 6.0%
19,500 Agnico-Eagle Mines 718,770
45,700 Airgas 1,848,565
36,000 Albany International
Class A 1,407,600
5,600 Albemarle 267,792
88,100 Coeur d'Alene Mines (1) 614,938
13,500 Cytec Industries 816,345
22,900 FMC 1,455,524
7,600 Foundation Coal Holdings 385,320
29,068 Goldcorp 1,020,868
30,500 Koppers Holdings (1) 610,000
10,100 Olin 207,555
24,200 Schnitzer Steel Industries
Class A 951,786
32,600 Westlake Chemical 989,410
--------------
11,294,473
OTHER - 0.6%
44,500 Laidlaw International 1,101,375
--------------
OTHER ENERGY - 7.0%
31,305 Birchcliff Energy Ltd (1) 193,293
29,788 Denbury Resources (1) 971,089
69,500 Dresser-Rand Group (1) 1,735,415
32,300 FMC Technologies (1) 1,762,934
40,000 Galleon Energy Class A (1) 1,159,732
73,300 Hanover Compressor (1) 1,477,728
6,400 Ormat Technologies 218,944
50,968 ShawCor (1) 912,179
19,000 St. Mary Land & Exploration 801,040
45,900 Stroud Energy (1) (3) (4) 734,400
55,400 Superior Energy Services (1) 1,781,110
65,246 Willbros Group (1) 1,441,936
--------------
13,189,800
PRODUCER DURABLES - 6.3%
22,900 Actuant Class A 1,464,455
29,900 DRS Technologies 1,660,347
22,200 IDEX 1,127,760
12,800 Kennametal 791,680
27,000 Manitowoc 1,338,930
Shares Value $
------ -------
41,479 MTC Technologies (1) 1,187,544
21,200 Rofin-Sinar Technologies (1) 1,189,532
106,800 Ultratech (1) 2,097,552
111,300 Xerium Technologies 1,036,203
--------------
11,894,003
TECHNOLOGY - 16.9%
128,800 Advanced Analogic
Technologies (1) 1,445,136
47,800 Altiris (1) 1,022,920
185,000 Axcelis Technologies (1) 1,089,650
27,400 CSG Systems International (1) 692,672
74,600 Emulex (1) 1,353,990
27,300 F5 Networks (1) 1,598,688
16,800 Filenet (1) 467,376
64,886 II-VI (1) 1,405,431
133,800 Informatica (1) 2,056,506
106,100 Integrated Device
Technology (1) 1,614,842
54,400 Kanbay International (1) 843,200
51,794 Lionbridge Technologies (1) 425,747
45,800 Mapinfo (1) 636,620
103,400 MIPS Technologies (1) 766,194
125,360 Parametric Technology (1) 1,872,878
128,500 Perot Systems Class A (1) 1,937,780
185,400 RSA Security (1) 3,882,276
76,000 SBA Communications
Class A (1) 1,909,120
46,000 Sina (1) 1,216,700
32,435 Technology Investment
Capital 459,279
78,000 THQ (1) 1,999,140
42,800 UbiquiTel (1) 443,408
24,000 Veeco Instruments (1) 574,800
120,900 Volterra Semiconductor (1) 1,986,387
--------------
31,700,740
TELEPHONES &
TELECOMMUNICATIONS - 1.0%
44,079 Cbeyond Communications (1) 870,560
89,900 Powerwave Technologies (1) 1,002,385
--------------
1,872,945
UTILITIES - 1.6%
10,000 ITC Holdings 258,300
59,650 PNM Resources 1,509,742
45,200 Southern Union (1) 1,171,584
--------------
2,939,626
--------------
TOTAL COMMON STOCK
(Cost $135,955,101) 166,111,107
--------------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
29
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNTIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
INVESTMENT COMPANY - 0.9%
22,300 iShares Russell 2000 Index
Fund 1,699,260
--------------
TOTAL INVESTMENT
COMPANY
(Cost $1,654,010) 1,699,260
--------------
Principal
Amount $
---------
SHORT-TERM
INVESTMENTS - 10.6%
5,952,245 JPMorgan Chase Time Deposit,
4.29% 5,952,245
Shares
------
7,004,407 SEI Daily Income Trust
Money Market Fund, Class A,
4.81% (5) 7,004,407
7,063,000 SEI Daily Income Trust
Prime Obligations Fund,
Class A, 4.80% (5) 7,063,000
--------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $20,019,653) 20,019,652
--------------
TOTAL
INVESTMENTS - 99.9%
(Cost $157,628,764) 187,830,019
--------------
OTHER ASSETS LESS
LIABILITIES - 0.1% 121,203
--------------
NET ASSETS - 100.0% $187,951,222
==============
(1) Denotes non-income producing security.
(2) Business development and investment company.
(3) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration
normally to qualified institutions. On April 30, 2006, the value of this
security amounted to $734,400, representing 0.4% of the net assets of the
Fund. This security is considered illiquid and restricted (See Note 2 in
Notes to Financial Statements).
(4) Security is fair valued.
(5) Rate shown is the 7-day effective yield as of April 30, 2006.
Ltd -- Limited
REIT -- Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
30
- --------------------------------------------------------------------------------
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 94.2%
AUTOS & TRANSPORTATION - 0.2%
100 Expeditors International
Washington 8,561
300 JB Hunt Transport Services 7,149
-----------
15,710
CONSUMER DISCRETIONARY - 15.5%
13,100 Activision (1) 185,889
1,600 Cheesecake Factory (1) 50,496
100 Choice Hotels International 5,353
3,100 ChoicePoint (1) 136,493
800 Corporate Executive Board 85,704
1,500 DreamWorks Animation SKG
Class A (1) 40,650
100 Education Management (1) 4,246
1,600 Lamar Advertising Class A (1) 87,984
400 PETCO Animal Supplies (1) 8,760
2,300 Regis 80,661
1,600 Ritchie Brothers Auctioneers 86,240
1,500 Saks (1) 30,210
4,400 Scientific Games Class A (1) 167,596
4,800 Watson Wyatt Worldwide
Class A 158,256
-----------
1,128,538
CONSUMER STAPLES - 2.1%
6,300 Constellation Brands
Class A (1) 155,610
-----------
FINANCIAL SERVICES - 12.4%
800 AllianceBernstein Holding LP 51,560
1,500 Brandywine Realty Trust 42,465
2,400 Checkfree (1) 129,288
1,600 Compass Bancshares 87,936
2,400 Cullen/Frost Bankers 138,912
800 Dun & Bradstreet (1) 61,616
700 Max Re Capital 17,150
1,600 Reinsurance Group of America 76,960
1,600 SVB Financial Group (1) 81,232
1,502 United Dominion Realty Trust 40,839
1,600 Valley National Bancorp 41,664
800 Westamerica Bancorporation 40,912
2,400 WR Berkley 89,808
-----------
900,342
HEALTH CARE - 14.8%
100 Advanced Medical Optics (1) 4,660
1,600 Amylin Pharmaceuticals (1) 69,680
800 Barr Pharmaceuticals (1) 48,440
2,400 DaVita (1) 135,024
5,300 Diversa (1) 55,809
4,800 Endo Pharmaceuticals
Holdings (1) 150,960
Shares Value $
------ -------
800 Fisher Scientific
International (1) 56,440
18,400 Healthsouth (1) 84,456
1,500 Invitrogen (1) 99,015
4,800 Medicis Pharmaceutical
Class A 157,824
1,300 Psychiatric Solutions (1) 42,978
4,500 Thermo Electron (1) 173,430
-----------
1,078,716
MATERIALS & PROCESSING - 9.2%
3,100 Albemarle 148,242
2,000 Ashland 131,640
1,500 Fluor 139,365
1,500 Goldcorp 52,680
1,500 Jacobs Engineering Group (1) 124,050
1,200 Lubrizol 52,332
600 Pactiv (1) 14,604
400 ShawCor (1) 7,159
-----------
670,072
OTHER - 1.8%
2,300 ITT Industries 129,329
-----------
OTHER ENERGY - 8.5%
2,400 Cooper Cameron (1) 120,576
800 Denbury Resources (1) 26,080
4,700 Dresser-Rand Group (1) 117,359
1,500 Noble 118,410
800 Noble Energy 35,984
2,400 NRG Energy (1) 114,216
1,600 Weatherford International (1) 84,688
-----------
617,313
PRODUCER DURABLES - 4.6%
2,400 Crown Castle International (1) 80,760
3,100 Dover 154,225
1,600 DRS Technologies 88,848
200 Tektronix 7,064
-----------
330,897
TECHNOLOGY - 22.7%
3,100 Amdocs (1) 115,320
1,600 Amphenol Class A 92,480
2,100 Axcelis Technologies (1) 12,369
5,500 BEA Systems (1) 72,875
2,400 Cognos (1) 89,448
12,000 Emulex (1) 217,800
3,100 Harris 144,367
4,800 Integrated Device Technology (1) 73,056
3,900 Intersil Class A 115,479
13,500 Parametric Technology (1) 201,690
10,000 Perot Systems Class A (1) 150,800
3,100 SRA International Class A (1) 99,262
7,900 Symbol Technologies 84,135
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
31
- --------------------------------------------------------------------------------
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
TECHNOLOGY - (CONTINUED)
7,900 VeriSign (1) 185,808
----------
1,654,889
UTILITIES - 2.4%
1,600 NII Holdings (1) 95,840
3,100 Southern Union (1) 80,352
----------
176,192
TOTAL COMMON STOCK
(Cost $6,713,181) 6,857,608
----------
SHORT-TERM
INVESTMENTS - 6.3%
226,000 SEI Daily Income Trust
Money Market Fund, Class A,
4.81% (2) 226,000
231,000 SEI Daily Income Trust
Prime Obligations Fund,
Class A, 4.80% (2) 231,000
----------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $457,000) 457,000
----------
TOTAL
INVESTMENTS - 100.5%
(Cost $7,170,181) 7,314,608
----------
OTHER ASSETS LESS
LIABILITIES - (0.5)% (35,950)
----------
NET ASSETS - 100.0% $7,278,658
==========
(1) Denotes non-income producing security.
(2) Rate shown is the 7-day effective yield as of April 30, 2006.
LP -- Limited Partnership
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
32
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL ALPHA FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 98.0%
AUSTRALIA - 1.7%
141,719 Macquarie Infrastructure Group 384,258
-----------
BRAZIL - 2.1%
12,002 Banco Bradesco ADR 456,916
-----------
CANADA - 5.4%
7,107 Niko Resources 414,019
9,059 Nova Chemicals 268,811
6,009 Suncor Energy 514,811
-----------
1,197,641
FRANCE - 12.9%
15,496 AXA 568,705
4,734 BNP Paribas 447,336
471 BNP Paribas - New (1) 42,992
1,957 Groupe Danone 244,180
3,857 Renault 447,674
5,040 Schneider Electric 570,675
1,929 Total (1) 533,454
-----------
2,855,016
GERMANY - 3.3%
6,046 Deutsche Bank 742,325
-----------
GREECE - 0.7%
3,339 National Bank of Greece 165,804
-----------
HONG KONG - 2.0%
202,000 China Resources Enterprise 432,504
-----------
INDONESIA - 1.8%
11,637 Telekomunikasi Indonesia ADR 401,477
-----------
IRELAND - 1.8%
15,436 Irish Life & Permanent 393,768
-----------
ITALY - 1.7%
20,357 Sanpaolo IMI 382,413
-----------
JAPAN - 19.1%
12,900 Daikin Industries 449,789
28,400 Mitsubishi Corp. 687,177
5,300 Nitto Denko 444,537
16,000 Omron 446,865
2,270 ORIX 681,837
58 Sumitomo Mitsui Financial
Group 636,747
6,300 T&D Holdings 483,041
28,000 Takashimaya 408,958
-----------
4,238,951
NETHERLANDS - 4.1%
27,040 Reed Elsevier 400,838
4,650 SBM Offshore 498,943
-----------
899,781
Shares Value $
------ -------
SINGAPORE - 2.3%
44,500 Jardine Strategic Holdings 507,300
-----------
SOUTH KOREA - 7.0%
18,080 Daewoo Shipbuilding & Marine
Engineering 528,324
8,610 LG.Philips LCD ADR (1) 181,241
320 Lotte Confectionery 431,396
589 Samsung Electronics 402,329
-----------
1,543,290
SWITZERLAND - 5.6%
1,291 Nestle 393,743
8,340 Novartis 478,464
2,347 Roche Holding 360,888
-----------
1,233,095
UNITED KINGDOM - 26.5%
26,678 Alliance Unichem 432,252
21,719 Barclays 271,304
21,935 BG Group 294,803
40,558 Capita Group 344,473
33,724 Diageo 556,563
11,055 Rio Tinto 608,018
94,706 Rolls-Royce Group (1) 822,937
1,136,202 Rolls-Royce Group, B Shares 2,207
19,900 Royal Bank of Scotland Group 649,943
218,818 Signet Group 422,976
88,070 Tesco 513,127
218,759 Vodafone Group 516,609
35,667 WPP Group 440,333
-----------
5,875,545
-----------
TOTAL COMMON STOCK
(Cost $20,045,735) 21,710,084
-----------
EQUITY-LINKED
WARRANTS (2) - 1.5%
INDIA - 1.5%
20,228 Satyam Computer Services,
Expires 10/13/10 (1) 337,036
-----------
TOTAL EQUITY-LINKED
WARRANTS
(Cost $348,121) 337,036
-----------
SHORT-TERM
INVESTMENTS - 0.5%
Principal
Amount $
---------
2,166 JPMorgan Chase Time Deposit,
4.29% 2,166
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
33
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL ALPHA FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
SHORT-TERM
INVESTMENTS - (CONTINUED)
49,000 SEI Daily Income Trust
Money Market Fund, Class A,
4.81% (3) 49,000
66,000 SEI Daily Income Trust
Prime Obligations Fund,
Class A, 4.80% (3) 66,000
-----------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $117,166) 117,166
-----------
TOTAL
INVESTMENTS - 100.0%
(Cost $20,511,022) 22,164,286
-----------
OTHER ASSETS LESS
LIABILITIES - 0.0% (1,502)
-----------
NET ASSETS - 100.0% $22,162,784
===========
(1) Denotes non-income producing security.
(2) Securities are not readily marketable.
(3) Rate shown is the 7-day effective yield as of April 30, 2006.
ADR -- American Depositary Receipts
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
34
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 89.7%
ARGENTINA - 0.4%
3,300 Telecom Argentina ADR (1) 42,735
-----------
BERMUDA - 0.1%
400 Credicorp 10,840
-----------
BRAZIL - 10.2%
500 All America Latina Logistica 31,767
3,900 Banco Bradesco ADR 148,473
4,500 Cia Vale do Rio Doce ADR 200,160
3,100 Companhia De Saneamento De
Minas Gerais (1) 31,215
2,700 CPFL Energia 38,166
1,650 Gerdau ADR 28,545
4,900 Petroleo Brasileiro ADR 435,561
1,400 Tele Norte Leste Participacoes 57,061
1,200 Telemar Norte Leste 33,431
1,000 Unibanco - Uniao de Bancos
Brasileiros ADR 79,350
-----------
1,083,729
CHILE - 1.5%
900 Banco Santander Chile ADR 39,312
6,700 Enersis ADR 81,807
300 Sociedad Quimica Y
Minera ADR 34,875
-----------
155,994
CHINA - 4.6%
200,000 China Petroleum & Chemical
Class H 127,047
102,000 Guangshen Railway Class H 39,140
70,000 PetroChina 77,196
63,000 Ping An Insurance Group
Class H (1) 173,488
74,000 Tingyi Cayman Islands Holding 47,246
7,800 ZTE Class H 26,661
-----------
490,778
CZECH REPUBLIC - 0.8%
2,434 CEZ (1) 83,460
-----------
HONG KONG - 4.8%
72,000 China Mengniu Dairy 82,187
30,500 China Mobile Hong Kong 177,422
137,000 CNOOC 110,441
58,000 COSCO Pacific 138,024
-----------
508,074
INDIA - 1.5%
570 Grasim Industries GDR (2) 29,808
600 Infosys Technologies ADR 47,190
1,807 Reliance Industries GDR (2) 79,960
-----------
156,958
Shares Value $
------ -------
INDONESIA - 1.6%
52,500 Astra Agro Lestari 39,509
48,000 PT Astra International 65,405
82,000 Telekomunikasi Indonesia 70,593
-----------
175,507
ISRAEL - 3.1%
4,504 Bank Hapoalim GDR 113,409
5,400 Teva Pharmaceutical Industries
ADR 218,700
-----------
332,109
LUXEMBOURG - 1.5%
3,500 Tenaris ADR 160,650
-----------
MALAYSIA - 4.7%
45,700 Astro All Asia Networks 57,747
94,100 Bumiputra-Commerce
Holdings 163,562
18,900 Genting 132,970
19,600 Malayan Banking 60,025
34,100 SP Setia 35,187
19,400 Tenaga Nasional 45,764
-----------
495,255
MEXICO - 2.7%
6,700 Alfa 33,680
3,300 America Movil ADR Series L 121,803
7,000 Cemex 47,371
7,500 Grupo Bimbo Series A 23,462
21,600 Wal-Mart de Mexico Series V 61,614
-----------
287,930
PERU - 0.1%
500 Cia de Minas Buenaventura
ADR 15,195
-----------
PHILIPPINES - 0.5%
232,000 Ayala Land 52,778
-----------
RUSSIA - 9.0%
3,100 LUKOIL ADR 280,550
500 MMC Norilsk Nickel ADR 66,000
2,900 Mobile Telesystems ADR 94,714
6,025 OAO Gazprom ADR 277,150
1,800 Surgutneftegaz ADR 234,000
-----------
952,414
SOUTH AFRICA - 8.5%
3,900 ABSA Group 77,284
13,200 Aspen Pharmacare Holdings (1) 93,656
11,500 Edgars Consolidated Stores 72,955
37,300 FirstRand 123,296
4,200 Gold Fields 106,059
400 Impala Platinum Holdings 76,127
3,400 Imperial Holdings 94,791
6,197 MTN Group 62,073
4,500 Naspers, N Shares 99,165
2,313 Sasol 97,694
-----------
903,100
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
35
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - (CONTINUED)
SOUTH KOREA - 16.7%
4,160 Hyundai Motor GDR 182,816
4,700 Kookmin Bank ADR 418,535
2,100 Korea Electric Power ADR 47,880
4,700 LG.Philips LCD ADR (1) 98,935
1,430 POSCO ADR 100,772
2,220 Samsung Electronics GDR 757,020
1,700 Shinhan Financial Group ADR 164,628
-----------
1,770,586
TAIWAN - 14.0%
5,294 Cathay Financial Holding GDR 118,637
3,908 China Steel GDR 76,308
4,827 E.Sun Financial Holding GDR 89,975
5,509 Far EasTone Telecommunications
GDR 102,821
12,894 Fubon Financial Holding GDR 122,751
19,387 HON HAI Precision Industry
GDR 263,103
7,176 Quanta Computer GDR 63,312
40,700 Taiwan Semiconductor
Manufacturing ADR 426,536
58,100 United Microelectronics ADR 219,037
-----------
1,482,480
THAILAND - 2.1%
32,100 Bangkok Bank 101,810
17,400 Kasikornbank 31,535
13,400 PTT 92,143
-----------
225,488
TURKEY - 1.0%
6,000 Turkcell Iletisim Hizmet ADR 102,300
-----------
UNITED STATES - 0.3%
300 Southern Copper 29,715
-----------
TOTAL COMMON STOCK
(Cost $8,957,566) 9,518,075
-----------
PREFERRED STOCK - 1.1%
BRAZIL - 1.1%
20,000 Investimentos Itau 91,872
700,000 Lojas Americanas 29,101
-----------
TOTAL PREFERRED STOCK
(Cost $116,575) 120,973
-----------
INVESTMENT COMPANY - 1.0%
4,400 Turkish Investment Fund 109,340
-----------
TOTAL INVESTMENT
COMPANY
(Cost $112,430) 109,340
-----------
EQUITY-LINKED
WARRANTS (3) - 7.2%
RUSSIA - 0.5%
3 Baskets - Russian Exchange,
Expires 12/22/07 (1) 52,800
-----------
Shares Value $
------ -------
SOUTH KOREA - 4.0%
490 Hite Brewery,
Expires 5/16/06 (1) 64,419
2,280 Hyundai Development,
Expires 11/28/08 (1) 132,268
5,170 Pusan Bank, Expires
11/28/08 (1) 79,505
610 S-Oil, Expires 11/28/08 (1) 47,227
230 Shinsegae, Expires 1/10/08 (1) 103,794
-----------
427,213
TAIWAN - 2.7%
61,000 Formosa Chemicals & Fibre,
Expires 04/18/08 (1) 108,580
9,000 MediaTek, Expires 02/28/08 (1) 115,824
56,000 Taiwan Mobile,
Expires 01/20/10 (1) 55,272
-----------
279,676
-----------
TOTAL EQUITY-LINKED
WARRANTS
(Cost $729,147) 759,689
-----------
SHORT-TERM
INVESTMENTS - 0.4%
39,300 SEI Daily Income Trust
Money Market Fund, Class A,
4.81% (4) 39,300
1,800 SEI Daily Income Trust
Prime Obligations Fund,
Class A, 4.80% (4) 1,800
-----------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $41,100) 41,100
-----------
TOTAL
INVESTMENTS - 99.4%
(Cost $9,956,818) 10,549,177
-----------
OTHER ASSETS LESS
LIABILITIES - 0.6% 65,930
-----------
NET ASSETS - 100.0% $10,615,107
===========
(1) Denotes non-income producing security.
(2) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally to qualified institutions. On April 30, 2006, the
value of these securities amounted to $109,768, representing 1.0% of the
net assets of the Fund.
(3) Securities are not readily marketable.
(4) Rate shown is the 7-day effective yield as of April 30, 2006.
ADR -- American Depositary Receipts
GDR -- Global Depositary Receipts
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
36
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 59.7%
3,395,224 American Home Mortgage
Investment Trust,
Series 2005-1, Class 1A1 (1)
5.179%, 6/25/45 3,403,650
440,806 American Home Mortgage
Investment Trust,
Series 2005-SD1,
Class 2A1 (1) (3)
5.459%, 11/25/35 440,806
342,679 Banc of America Mortgage
Securities, Series 2003-K,
Class 2A2 (1)
4.484%, 12/25/33 336,585
1,616,965 Bayview Commercial Asset
Trust IO, Series 2005-1A (2)
0.775%, 4/25/35 121,272
1,017,571 Bear Stearns Alternative Trust,
Series 2004-3, Class A1 (1)
5.279%, 4/25/34 1,018,763
748,604 Citigroup Mortgage Loan Trust,
Series 2003-AP3, Class A1
7.000%, 9/25/33 762,344
830,231 Citigroup Mortgage Loan Trust,
Series 2003-UP3, Class A2
7.000%, 9/25/33 843,584
1,224,305 Citigroup Mortgage Loan Trust,
Series 2004-2, Class 1A23 (3)
9.250%, 8/25/33 1,270,003
755,484 Citigroup Mortgage Loan Trust,
Series 2005-1, Class 3A1
6.500%, 4/25/35 761,797
735,708 Countrywide Alternative Loan
Trust, Series 2005-14,
Class 2A1 (1)
5.169%, 5/25/35 736,292
2,179,283 Countrywide Alternative Loan
Trust, Series 2005-38,
Class A1 (1)
5.388%, 9/25/35 2,201,076
2,708,241 Countrywide Alternative Loan
Trust, Series 2005-51,
Class 3A2A (1)
5.040%, 11/20/35 2,730,245
3,194,654 Countrywide Alternative Loan
Trust, Series 2005-56,
Class 2A3 (1)
5.388%, 11/25/35 3,226,601
1,743,098 Countrywide Alternative Loan
Trust, Series 2005-65CB,
Class 1A7
5.500%, 1/25/36 1,722,956
Principal
Amount $ Value $
--------- -------
5,173,575 Countrywide Alternative Loan
Trust, Series 2005-76,
Class 1A1 (1)
5.368%, 1/25/36 5,225,311
132,167 Countrywide Alternative Loan
Trust, Series 2005-J4,
Class 1A1 (1)
5.249%, 7/25/35 132,434
437,167 Countrywide Alternative Loan
Trust, Series 2005-J4,
Class 1A4 (1)
5.299%, 7/25/35 439,173
3,246,696 Countrywide Alternative Loan
Trust, Series 2006-J1,
Class 1A6
5.500%, 2/25/36 3,221,226
855,110 Countrywide Home Loans,
Series 2005-11, Class 4A1 (1)
5.229%, 4/25/35 857,279
2,348,068 Deutsche Alt-A Securities,
Series 2006-AB1, Class A2A
5.500%, 2/25/36 2,336,694
2,325,781 Greenpoint Mortgage Funding
Trust, Series 2005-AR5,
Class 4A1 (1)
5.751%, 11/25/45 2,378,111
1,674,594 Harborview Mortgage Loan
Trust, Series 2005-12,
Class 2A11 (1)
5.888%, 10/19/35 1,717,881
596,638 Impac CMB Trust,
Series 2004-1, Class A1 (1)
5.289%, 3/25/34 598,738
792,846 Impac CMB Trust,
Series 2005-1, Class 1A1 (1)
5.219%, 4/25/35 793,370
2,335,506 Impac CMB Trust,
Series 2005-3, Class A1 (1)
5.199%, 8/25/35 2,335,258
808,858 Impac CMB Trust,
Series 2005-4, Class 1A2 (1)
5.299%, 5/25/35 810,893
64,687 Impac Secured Assets,
Series 2004-3, Class 1A1 (1)
5.159%, 11/25/34 64,733
364,603 Impac Secured Assets,
Series 2005-2, Class A1M (1)
5.349%, 3/25/36 365,386
18,040,881 Lehman Brothers Small Balance
Commercial IO, Series 2005-1A,
Class A (2)
0.850%, 2/25/30 372,093
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
37
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
COLLATERALIZED MORTGAGE
OBLIGATIONS - (CONTINUED)
805,883 Master Adjustable Rate Mortgages
Trust, Series 2004-9,
Class 2A1 (1)
5.339%, 11/25/34 809,224
92,624 Novastar NIM Trust,
Series 2005-N1, Class Note (3)
4.777%, 10/26/35 92,283
1,267,590 Residential Accredit Loans,
Series 2005-Q01, Class A2 (1)
5.511%, 8/25/35 1,280,266
3,673,385 Residential Accredit Loans,
Series 2005-Q02, Class A1
5.371%, 9/25/45 3,712,838
1,536,964 Residential Accredit Loans,
Series 2005-QS12, Class A3
5.500%, 8/25/35 1,520,715
1,077,050 Saco I Trust, Series 2005-2,
Class A (1) (3)
5.159%, 4/25/35 1,077,431
229,322 Saco I Trust, Series 2005-3,
Class A1 (1)
5.189%, 7/25/35 229,583
291,046 Structured Adjustable Rate
Mortgage, Series 2005-19X1,
Class A1 (3)
5.400%, 10/28/10 289,409
190,000 Structured Adjustable Rate
Mortgage, Series 2005-19X2,
Class A1 (3)
4.000%, 10/28/10 186,912
2,635,280 Structured Asset Mortgage
Investments, Series 2005-AR7,
Class 5A1 (1)
5.348%, 3/25/46 2,638,574
3,214,899 Structured Asset Mortgage
Investments, Series 2005-AR8,
Class A2 (1)
5.368%, 2/25/36 3,247,048
1,229,402 Structured Asset Securities,
Series 2005-GEL2, Class A (1)
5.239%, 4/25/35 1,230,566
361,346 Structured Asset Securities,
Series 2005-S2, Class A1 (1)
5.059%, 6/25/35 361,579
305,000 Wachovia Bank Commercial
Mortgage Trust,
Series 2002-WHL,
Class L (1) (3)
7.901%, 3/15/15 305,251
Principal
Amount $ Value $
--------- -------
2,206,371 Washington Mutual,
Series 2005-AR13,
Class A1A2 (1)
5.338%, 10/25/45 2,230,589
2,470,000 Washington Mutual,
Series 2006-AR5,
Class A1A (1)
5.001%, 6/25/46 2,470,000
580,581 WMALT Mortgage Pass-
Through Certificates,
Series 2005-5, Class 1A5 (1)
5.359%, 7/25/35 579,886
------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $63,872,530) 63,486,708
------------
ASSET-BACKED
SECURITIES - 16.0%
1,722,661 Aegis Asset-Backed Securities
Trust, Series 2005-1,
Class IA2 (1)
5.209%, 3/25/35 1,724,830
649,820 Aegis Asset-Backed Securities
Trust, Series 2005-2,
Class 1A1 (1)
5.059%, 6/25/35 650,268
92,127 Amortizing Residential Collateral
Trust, Series 2002-BC1,
Class M1 (1)
5.809%, 1/25/32 92,391
390,000 Amortizing Residential Collateral
Trust, Series 2002-BC10,
Class M2 (1)
7.459%, 1/25/33 390,855
226,343 Amortizing Residential Collateral
Trust, Series 2002-BC2,
Class M1 (1)
5.709%, 5/25/32 227,286
66,841 Amortizing Residential Collateral
Trust, Series 2002-BC4,
Class M3 (1)
6.859%, 7/25/32 67,774
61,428 Amortizing Residential Collateral
Trust, Series 2002-BC8,
Class M3 (1)
6.959%, 11/25/32 61,491
495,152 Aspen Funding I, Ltd,
Series 2002-1A,
Class A1L (1) (3)
5.623%, 7/10/37 495,462
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
38
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
ASSET-BACKED
SECURITIES - (CONTINUED)
94,032 Carrington Mortgage Loan Trust,
Series 2005-2, Class A1A (1)
5.049%, 5/25/35 94,090
93,984 Carrington Mortgage Loan Trust,
Series 2005-NC2, Class A1 (1)
5.089%, 5/25/35 94,044
75,937 Countrywide Asset-Backed
Certificates, Series 2003-1,
Class B (1)
8.318%, 9/25/32 76,671
510,000 Countrywide Asset-Backed
Certificates, Series 2003-1,
Class M1 (1)
5.709%, 4/25/33 512,263
164,157 Countrywide Asset-Backed
Certificates, Series 2003-3,
Class 3A (1)
5.229%, 11/25/33 164,321
974,700 Countrywide Asset-Backed
Certificates, Series 2004-11,
Class A2 (1)
5.339%, 3/25/33 977,096
258,029 Countrywide Asset-Backed
Certificates, Series 2004-SD3,
Class A2 (1) (3)
5.509%, 9/25/34 259,450
86,257 Countrywide Asset-Backed
Certificates, Series 2005-2N,
Class N (3)
4.500%, 8/25/36 84,994
480,000 Countrywide Asset-Backed
Certificates, Series 2005-5,
Class M4 (1)
5.759%, 10/25/35 483,505
393,363 Countrywide Asset-Backed
Certificates, Series 2005-9N,
Class N (3)
5.500%, 10/25/36 387,869
250,514 Countrywide Asset-Backed
Certificates,
Series 2005-AB5N (3)
6.000%, 12/29/36 248,479
108,737 Countrywide Asset-Backed
Certificates, Series 2005-SD1,
Class A1A (1) (3)
5.109%, 5/25/35 108,807
630,961 Countrywide Home Equity Loan
Trust, Series 2003-C,
Class A (1)
5.171%, 5/15/29 632,498
Principal
Amount $ Value $
--------- -------
669,351 Credit Suisse First Boston
Mortgage Securities,
Series 2005-AGE1,
Class A1 (1)
5.099%, 2/25/32 669,863
467,435 Fieldstone Mortgage Investment,
Series 2005-1, Class 1A2 (1)
5.249%, 3/25/35 467,926
50,969 Fieldstone Mortgage Investment,
Series 2005-1, Class 2A1 (1)
5.079%, 3/25/35 51,001
265,747 Finance America Mortgage
Loan Trust, Series 2004-3,
Class 2A1 (1)
5.329%, 11/25/34 266,884
1,043,820 Financial Asset Securities
Trust, Series 2005-1A,
Class 2A1 (1) (3)
5.269%, 2/27/35 1,046,181
175,000 First Franklin Mortgage Loan,
Series 2003-FF1, Class M3F
5.592%, 3/25/33 173,913
232,519 Fremont Home Loan Trust,
Series 2005-B, Class 2A1 (1)
5.049%, 4/25/35 232,672
31,015 Fremont NIM Trust,
Series 2004-D, Class N1 (3)
4.500%, 11/25/34 30,961
121,930 GSAMP Trust, Series 2004-WFN,
Class N (3)
5.000%, 10/25/34 121,015
79,420 GSAMP Trust, Series 2005-SD1,
Class N (3)
5.375%, 1/25/35 78,229
1,940,000 Indymac Index Mortgage Loan
Trust, Series 2006-AR9,
Class 3A1
6.040%, 5/25/36 1,957,278
77,673 Merrill Lynch Mortgage
Investors, Series 2005-SL2,
Class A1A (1)
5.049%, 12/25/35 77,720
340,000 Park Place Securities,
Series 2005-WHQ2,
Class A2B (1)
5.109%, 5/25/35 340,273
475,314 RAAC Series, Series 2005-RP1,
Class A (1) (3)
5.299%, 7/25/37 475,739
366,113 RAAC Series, Series 2005-RP3,
Class A1 (1) (3)
5.189%, 5/25/39 365,982
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
39
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
ASSET-BACKED
SECURITIES - (CONTINUED)
299,164 Residential Asset Mortgage
Products, Series 2005-RS4,
Class A1 (1)
5.059%, 4/25/35 299,387
15,665 Sail Net Interest Margin Notes,
Series 2004-8A, Class A (3)
5.000%, 9/27/34 15,642
363,779 Soundview Home Equity Loan
Trust, Series 2004-1,
Class A1 (1)
5.329%, 7/25/34 363,988
330,000 Structured Asset Investment
Loan Trust, Series 2003-BC1,
Class M2 (1)
6.809%, 1/25/33 331,097
388,000 Structured Asset Investment
Loan Trust, Series 2003-BC11,
Class M4 (1)
7.959%, 10/25/33 393,298
160,000 Structured Asset Investment
Loan Trust, Series 2003-BC2,
Class M1 (1)
5.879%, 4/25/33 160,636
160,000 Structured Asset Investment
Loan Trust, Series 2003-BC7,
Class M1 (1)
5.709%, 7/25/33 160,852
280,000 Structured Asset Investment
Loan Trust, Series 2004-1,
Class M4 (1)
7.709%, 2/25/34 283,572
113,400 Structured Asset Investment
Loan Trust, Series 2005-2,
Class A2 (1)
5.079%, 3/25/35 113,477
698,036 Wachovia Loan Trust,
Series 2005-SD1,
Class A (1) (3)
5.319%, 5/25/35 698,691
------------
TOTAL ASSET-BACKED
SECURITIES
(Cost $17,009,586) 17,010,721
------------
Principal
Amount $ Value $
--------- -------
MORTGAGE-BACKED
OBLIGATIONS - 10.0%
84,630 Aames Mortgage Trust,
Series 2002-2, Class B
6.770%, 3/25/33 84,647
780,000 Ace Securities, Series 2004-FM1,
Class M2 (1)
6.209%, 9/25/33 787,438
27,188 Aegis Asset-Backed Securities
Trust, Series 2005-1N,
Class N1 (3)
4.250%, 3/25/35 27,157
494,506 Ameriquest Mortgage Securities,
Series 2002-1, Class M2 (1)
6.759%, 5/25/32 495,327
205,000 Ameriquest Mortgage Securities,
Series 2003-AR1, Class M3 (1)
7.959%, 1/25/33 206,986
64,633 Argent Securities,
Series 2003-W8,
Class A4 (1)
5.539%, 12/25/33 64,733
183,773 Asset-Backed Funding
Certificates, Series 2005-AQ1,
Class A1A (1)
5.079%, 6/25/35 183,885
580,834 Centex Home Equity,
Series 1999-4, Class A7 (1)
5.309%, 2/25/31 582,248
124,432 Chase Funding Loan Acquisition
Trust, Series 2003-C1,
Class 2M1 (1)
5.609%, 11/25/32 124,795
37,928 FEP Receivables Participation
Funding LP, Series 2001-1,
Class A-2L (1) (2)
4.510%, 11/18/08 37,833
222,103 Fremont NIM Trust,
Series 2005-B (3)
5.500%, 4/25/35 220,160
317,556 GMAC Mortgage Corporation
Loan Trust, Series 2004-HLT1,
Class A2
3.870%, 5/25/25 314,947
342,878 GRMT Mortgage Loan Trust,
Series 2001-1A, Class A5 (3)
6.650%, 7/20/31 344,231
305,096 GSAA Home Equity Trust,
Series 2006-2N, Class Note (3)
6.000%, 12/25/35 305,208
669,193 GSAA Home Equity Trust,
Series 2006-3N, Class N1 (3)
5.750%, 3/25/36 669,099
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
40
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
193,184 GSAMP Trust, Series 2005-S2,
Class A (1)
5.129%, 11/25/34 193,328
145,000 Home Equity Asset Trust,
Series 2003-1, Class M3 (1)
7.059%, 6/25/33 145,917
240,602 Lake Country Mortgage Loan
Trust, 2005-HE1,
Class A1 (1) (3)
5.159%, 12/25/32 240,602
32,600 Long Beach Asset Holdings,
Series 2004-6, Class N1 (1) (3)
4.500%, 11/25/34 32,552
129,611 Long Beach Asset Holdings,
Series 2005-2, Class N1 (3)
4.150%, 4/25/35 128,315
253,658 Long Beach Asset Holdings,
Series 2005-WL1, Class N1 (3)
5.193%, 6/25/45 252,231
232,335 Master Alternative NIM,
Series 2006-2, Class N1 (3)
7.500%, 12/25/35 228,850
154,901 Master Asset-Backed Securities
Trust, Series 2004-WMC3,
Class A2 (1)
5.319%, 10/25/34 155,163
116,591 Master Asset-Backed Securities
Trust, Series 2005-C10A,
Class N1 (3)
4.750%, 5/26/35 115,584
108,045 Master Asset-Backed Securities
Trust, Series 2005-CI9A,
Class N1 (3)
4.940%, 3/26/35 107,516
285,379 Master Asset-Backed Securities
Trust, Series 2005-HE1,
Class A1 (1)
5.059%, 5/25/35 285,572
215,659 Master Asset-Backed Securities
Trust, Series 2005-OPT1,
Class N (1) (3)
5.070%, 5/26/10 215,659
186,416 Master Asset-Backed Securities
Trust, Series 2006-C15A,
Class N1 (3)
6.280%, 1/26/36 186,416
Principal
Amount $ Value $
--------- -------
12,748 Opteum NIM Trust,
Series 2005-1 (3)
6.000%, 2/25/35 12,720
35,877 Option One Mortgage Loan
Trust, Series 2002-3,
Class M2 (1)
6.089%, 8/25/32 35,923
56,753 Option One Mortgage Loan
Trust, Series 2002-3,
Class M3 (1)
6.809%, 8/25/32 56,847
870,000 Option One Mortgage Loan
Trust, Series 2003-1,
Class M2 (1)
6.909%, 2/25/33 875,658
155,000 Option One Mortgage Loan
Trust, Series 2003-3,
Class M2 (1)
6.559%, 6/25/33 156,323
813,868 Provident Bank Home Equity
Loan Trust, Series 1999-3,
Class A3 (1)
5.349%, 1/25/31 814,814
39,579 Renaissance NIM Trust,
Series 2005-1, Class N (3)
4.700%, 5/25/35 39,257
47,766 Residential Asset Securities,
Series 2002-KS2,
Class MII3 (1)
6.759%, 4/25/32 47,863
250,000 Residential Asset Securities,
Series 2003-KS8,
Class MII2 (1)
6.459%, 10/25/33 251,557
50,289 Residential Asset Securities,
Series 2005-NT1 (3)
4.000%, 2/25/35 49,981
426,519 Sharp, Series 2006-ASP1,
Class N (3)
7.380%, 9/25/35 426,519
99,699 Sharps SP I LLC NIM Trust,
Series 2005-HE4N,
Class N (3)
5.250%, 7/25/35 98,952
121,321 Sharps SP I LLC NIM Trust,
Series 2005-HE6N,
Class N (3)
7.250%, 10/25/35 120,714
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
41
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
254,348 Soundview Home Equity Loan
Trust, Series 2003-2,
Class A2 (1)
5.609%, 11/25/33 256,185
635,000 Terwin Mortgage Trust,
Series 2006-4SL, Class A1 (3)
4.500%, 4/25/36 626,666
------------
TOTAL MORTGAGE-BACKED
OBLIGATIONS
(Cost $10,636,404) 10,606,378
------------
COMMERCIAL PAPER - 8.0%
5,000,000 AIG (4)
4.759%, 5/03/06 4,998,681
3,500,000 Citicorp (4)
4.763%, 5/01/06 3,500,000
------------
TOTAL COMMERCIAL
PAPER
(Cost $8,498,680) 8,498,681
------------
U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS - 4.4%
FNMA (1)
2,144,988 5.726%, 10/01/35 2,195,007
1,696,538 5.600%, 11/01/35 1,736,100
729,586 4.220%, 4/01/36 754,551
------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $4,675,154) 4,685,658
------------
U.S. TREASURY
OBLIGATIONS - 3.4%
500,000 U.S. Treasury Bill (4)
4.448%, 5/04/06 499,818
3,120,000 U.S. Treasury Note
4.375%, 1/31/08 3,093,065
------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $3,615,765) 3,592,883
------------
Principal
Amount $ Value $
--------- -------
CORPORATE
OBLIGATION - 0.2%
200,000 Twin Reefs Pass-Through (3)
5.849%, 12/10/09 200,007
------------
TOTAL CORPORATE
OBLIGATION
(Cost $200,341) 200,007
------------
SHORT-TERM
INVESTMENT - 0.8%
842,448 JPMorgan Chase Time Deposit,
4.29% 842,448
------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $842,448) 842,448
------------
TOTAL
INVESTMENTS - 102.5%
(Cost $109,350,908) 108,923,484
------------
OTHER ASSETS LESS
LIABILITIES - (2.5)% (2,710,506)
------------
NET ASSETS - 100.0% $106,212,978
============
(1) Variable Rate Security -- Rate disclosed is as of April 30, 2006.
(2) Security considered illiquid. On April 30, 2006, the value of these
securities amounted to $531,198, representing 0.5% of the net assets of the
Fund.
(3) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally to qualified institutions. On April 30, 2006, the
value of these securities amounted to $12,727,991, representing 12.0% of
the net assets of the Fund.
(4) The rate shown represents the security's effective yield at time of
purchase.
FNMA -- Federal National Mortgage Association
IO -- Interest Only Security
LLC -- Limited Liability Company
LP -- Limited Partnership
Ltd -- Limited
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
42
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS - 24.6%
FHLMC Gold
2,120 8.000%, 1/01/26 2,259
41,016 6.000%, 12/01/28 41,078
1,778,383 5.500%, 12/01/34 1,730,410
777,525 5.000%, 7/01/33 737,782
913,617 5.000%, 8/01/33 866,918
390,834 4.500%, 3/01/19 372,372
FNMA
33,203 7.500%, 12/01/29 34,606
5,801 7.000%, 12/01/10 5,879
5,920 7.000%, 5/01/24 6,101
10,091 7.000%, 5/01/26 10,405
47,951 7.000%, 5/01/26 49,412
41,810 6.000%, 12/01/28 41,804
32,576 6.000%, 12/01/28 32,571
525,915 5.500%, 7/01/34 511,580
124,430 4.500%, 10/01/33 114,418
125,000 4.250%, 5/15/09 121,929
140,023 FNMA, Series 2004-35,
Class AJ
4.500%, 1/25/20 138,343
GNMA
48,499 8.000%, 11/15/17 51,234
1,522 8.000%, 6/15/26 1,628
95,401 5.500%, 1/15/34 93,746
341,685 5.500%, 9/20/34 334,265
-----------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $5,427,999) 5,298,740
-----------
U.S. TREASURY
OBLIGATIONS - 22.9%
U.S. Treasury Bonds
630,000 6.125%, 8/15/29 698,759
70,000 5.375%, 2/15/31 71,072
1,080,000 4.500%, 2/15/16 1,032,919
475,000 4.500%, 2/15/36 426,869
U.S. Treasury Notes
175,000 4.875%, 4/30/08 175,068
1,065,000 4.875%, 4/30/11 1,063,003
515,000 4.750%, 3/31/11 511,097
970,000 4.500%, 2/28/11 952,571
-----------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $5,009,300) 4,931,358
-----------
Principal
Amount $ Value $
--------- -------
CORPORATE
OBLIGATIONS - 16.4%
100,000 American International
Group (1)
5.050%, 10/01/15 94,325
45,000 Assured Guaranty
7.000%, 6/01/34 46,782
60,000 British Sky Broadcast
Finance (1)
6.500%, 10/15/35 56,703
75,000 Cadbury Schweppes Finance (1)
5.125%, 10/01/13 71,507
125,000 Cathay United Bank (1) (2)
5.500%, 10/05/20 116,067
45,000 Cendant
6.875%, 8/15/06 45,159
40,000 ChinaTrust Commercial Bank
(1) (2)
5.625%, 12/29/49 37,160
Citigroup
85,000 5.850%, 12/11/34 81,087
85,000 5.000%, 9/15/14 80,639
105,000 Comcast Cable Communication
8.875%, 5/01/17 123,884
45,000 Dime Capital Trust I
9.330%, 5/06/27 48,536
40,000 Dominion Resources
5.950%, 6/15/35 36,556
125,000 Enterprise Products Operations
4.950%, 6/01/10 121,118
10,000 Exelon
4.900%, 6/15/15 9,213
160,000 FirstEnergy
6.450%, 11/15/11 165,186
GATX Financial
40,000 6.000%, 11/19/08 40,212
135,000 5.125%, 4/15/10 131,323
Goldman Sachs Group
100,000 6.450%, 5/01/36 99,139
40,000 5.000%, 10/01/14 37,618
50,000 Halliburton
8.750%, 2/15/21 62,245
160,000 Harrahs Operating
5.500%, 7/01/10 158,263
100,000 ICICI Bank Singapore (1)
5.750%, 11/16/10 98,698
35,000 ING Groep (2)
5.775%, 12/29/49 33,582
80,000 iStar Financial
5.650%, 9/15/11 78,786
55,000 JetBlue Airways (2)
5.330%, 3/15/14 54,263
40,000 JPMorgan Capital Trust I
7.540%, 1/15/27 41,867
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
43
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
CORPORATE
OBLIGATIONS - (CONTINUED)
10,000 JPMorgan Chase
4.750%, 3/01/15 9,305
70,000 Kinder Morgan Finance
5.700%, 1/05/16 67,554
70,000 Korea Development Bank
3.875%, 3/02/09 67,105
65,000 Lehman Brothers Holdings
4.500%, 7/26/10 62,534
80,000 MeadWestvaco
6.850%, 4/01/12 82,481
15,000 Meritage Homes
6.250%, 3/15/15 13,575
185,000 Montpelier Re Holdings
6.125%, 8/15/13 174,906
65,000 Morgan Stanley
4.750%, 4/01/14 60,210
85,000 Odyssey Re Holdings
7.650%, 11/01/13 84,541
30,000 Pacific Gas & Electric
6.050%, 3/01/34 28,791
50,000 Pemex Project Master Trust (1)
5.750%, 12/15/15 47,463
65,000 Plum Creek Timberlands
5.875%, 11/15/15 63,063
100,000 PTT (1)
5.875%, 8/03/35 88,827
115,000 Pulte Homes
4.875%, 7/15/09 112,071
25,000 Royal Caribbean Cruises
7.500%, 10/15/27 25,648
30,000 Shinhan Bank (2)
5.663%, 3/02/35 27,855
100,000 Southern Copper
7.500%, 7/27/35 97,250
25,000 Sprint Capital
8.750%, 3/15/32 31,110
40,000 Telecom Italia Capital
4.950%, 9/30/14 36,676
40,000 Telecom Italia Capital (2)
5.160%, 2/01/11 40,285
85,000 Teva Pharmaceutical Finance LLC
6.150%, 2/01/36 78,789
70,000 Time Warner Entertainment
8.375%, 7/15/33 80,299
180,000 Transatlantic Holdings
5.750%, 12/14/15 174,628
-----------
TOTAL CORPORATE
OBLIGATIONS
(Cost $3,634,342) 3,524,884
-----------
Principal
Amount $ Value $
--------- -------
MORTGAGE-BACKED
OBLIGATIONS - 14.8%
25,000 Asset-Backed Funding
Certificates,
Series 2004-OPT5,
Class M2 (2)
6.409%, 12/25/33 25,423
440,000 Bear Stearns Commercial
Mortgage Securities,
Series 2004-PWR, Class A4
4.715%, 2/11/41 414,428
395,000 Bear Stearns Commercial
Mortgage Securities,
Series 2005-T18, Class A4 (2)
4.933%, 2/13/42 373,927
60,242 Chase Commercial Mortgage
Securities, Series 2000-2,
Class A1
7.543%, 7/15/32 62,419
255,000 Citibank Credit Card Issuance
Trust, Series 2004-A1,
Class A1
2.550%, 1/20/09 250,382
729,449 Countrywide Alternative Loan
Trust, Series 2005-65CB,
Class 1A7
5.500%, 1/25/36 721,020
21,775 Fremont NIM Trust,
Series 2005-B (1)
5.500%, 4/25/35 21,584
52,509 GMAC Mortgage Corporation
Loan Trust, Series 2004-HLT1,
Class A2
3.870%, 5/25/25 52,078
7,100 Home Equity Asset Trust,
Series 2003-1, Class B2 (2)
9.209%, 6/25/33 7,152
12,199 Long Beach Asset Holdings,
Series 2005-2, Class N1 (1)
4.150%, 4/25/35 12,077
49,478 Merrill Lynch Mortgage
Investors, Series 2005-SL1,
Class A
5.159%, 6/25/35 49,516
215,000 Morgan Stanley Capital I,
Series 2003-T11, Class A3
4.850%, 6/13/41 208,629
825,000 Morgan Stanley Capital I,
Series 2004-T15, Class A4 (2)
5.270%, 6/13/41 801,405
160,000 Morgan Stanley Dean Witter
Capital I, Series 2002-TOP7,
Class A2
5.980%, 1/15/39 163,020
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
44
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MORTGAGE-BACKED
OBLIGATIONS - (CONTINUED)
11,959 Option One Mortgage Loan
Trust, Series 2002-3,
Class M2
6.089%, 8/25/32 11,974
6,758 Salomon Brothers Mortgage
Securities VII,
Series 2001-CPB1, Class A (2)
6.000%, 12/25/30 6,755
-----------
TOTAL MORTGAGE-BACKED
OBLIGATIONS
(Cost $3,255,400) 3,181,789
-----------
COMMERCIAL PAPER - 12.5%
900,000 AIG (3)
4.760%, 5/03/06 899,762
900,000 General Electric Capital (3)
4.760%, 5/03/06 899,763
900,000 Toyota Motor Credit (3)
4.749%, 5/03/06 899,763
-----------
TOTAL COMMERCIAL
PAPER
(Cost $2,699,288) 2,699,288
-----------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 3.7%
149,077 American Home Mortgage
Investment Trust,
Series 2005-1,
Class 1A1
5.179%, 6/25/45 149,447
69,001 Citigroup Mortgage Loan Trust,
Series 2003-1, Class WA2
6.500%, 10/25/33 69,580
338,118 Citigroup Mortgage Loan Trust,
Series 2003-UP3, Class A2
7.000%, 9/25/33 343,556
228,006 Citigroup Mortgage Loan Trust,
Series 2005-1, Class 3A1
6.500%, 4/25/35 229,912
-----------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $803,956) 792,495
-----------
Principal
Amount $ Value $
--------- -------
ASSET-BACKED SECURITIES - 2.1%
211,149 Hedged Mutual Fund Fee Trust,
Series 2003-1A, Class 2 (1)
5.220%, 11/30/10 209,607
241,598 Hedged Mutual Fund Fee Trust,
Series 2003-2, Class 2 (1)
4.840%, 3/02/11 237,030
-----------
TOTAL ASSET-BACKED
SECURITIES
(Cost $452,620) 446,637
-----------
SHORT-TERM
INVESTMENT - 8.1%
1,757,221 JPMorgan Chase Time Deposit,
4.29% 1,757,221
-----------
TOTAL SHORT-TERM
INVESTMENT
(Cost $1,757,221) 1,757,221
-----------
TOTAL
INVESTMENTS - 105.1%
(Cost $23,040,126) 22,632,412
-----------
OTHER ASSETS LESS
LIABILITIES - (5.1)% (1,094,019)
-----------
NET ASSETS - 100.0% $21,538,393
===========
(1) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally to qualified institutions. On April 30, 2006, the
value of these securities amounted to $1,091,048, representing 5.1% of the
net assets of the Fund.
(2) Variable Rate Security -- Rate disclosed is as of April 30, 2006.
(3) The rate shown represents the security's effective yield at time of
purchase.
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
LLC -- Limited Liability Company
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
45
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - 90.9%
ALABAMA - 2.9%
Alabama Private Colleges &
Universities Facilities RB,
Tuskegee University Project,
Assured Guaranty
2,000,000 4.750%, 9/01/26 2,025,000
470,000 4.000%, 9/01/13 468,886
425,000 3.950%, 9/01/12 425,408
250,000 Crenshaw County, Industrial
Development Board RB, Sister
Schuberts Project, AMT,
Pre-Refunded @ 100, (LOC:
AmSouth Bank of Alabama)
(1) (2) (3) (4)
5.600%, 3/01/08 253,172
775,000 Jefferson County, Limited
Obligation School RB
Warrants, Series A
5.250%, 1/01/15 820,570
630,000 Jefferson County, Multi-Family
Housing Authority RB
Warrants, Mitchell
Investments, Series A,
(LOC: Regions Bank)
5.400%, 9/01/12 650,469
------------
4,643,505
ARIZONA - 1.3%
290,000 Phoenix, Industrial
Development Authority RB,
Hacienda Sunnyslope
Project, Series A,
AMT, GNMA
4.350%, 7/20/15 287,161
35,000 Pima County GO, ETM
6.750%, 11/01/09 35,939
1,740,000 State Health Facilities
Authority RB, Phoenix
Baptist Hospital &
Medical Center, MBIA, ETM
6.250%, 9/01/11 1,803,667
------------
2,126,767
ARKANSAS - 12.8%
570,000 Baxter County, Hospital
Revenue Authority RB,
Refunding & Improvement
Project, Series A
5.375%, 9/01/14 582,916
4,550,000 Cabot, Sales & Use Tax RB,
XLCA
4.300%, 12/01/31 4,567,608
Principal
Amount $ Value $
--------- -------
1,000,000 Drew County, Industrial
Development RB, JP Price
Lumber Project, Series B,
ADFA, AMT
5.000%, 2/01/16 1,009,930
100,000 Farmington, Sales & Use Tax RB
4.600%, 4/01/25 100,289
1,300,000 Little Rock, Library
Construction
GO, Series A
4.250%, 3/01/23 1,263,366
250,000 Pine Bluff, Industrial
Development RB,
Weyerhaeuser Project
5.500%, 11/01/07 256,468
5,800,000 Pulaski County, Lease Purchase
Authority RB, Series A,
FHLMC (5)
4.870%, 3/01/07 5,800,000
5,000,000 Pulaski County, Lease Purchase
Authority RB, Series B,
FHLMC (5)
4.870%, 3/01/07 5,000,000
1,275,000 Springdale, Sales & Use Tax RB,
MBIA
4.000%, 7/01/16 1,247,702
970,000 Stuttgart, Sales & Use Tax RB,
AMBAC
4.200%, 10/01/31 948,408
------------
20,776,687
CALIFORNIA - 8.3%
185,000 Anaheim, Memorial Hospital
Association COP, AMBAC,
ETM
5.125%, 5/15/20 185,202
590,000 Benicia, Unified School
District GO, Series B,
MBIA (6)
4.589%, 8/01/18 311,762
California Health Facilities
Funding Authority RB,
California-Nevada-Methodist
Project (7)
360,000 5.000%, 7/01/14 376,816
375,000 5.000%, 7/01/15 392,246
395,000 5.000%, 7/01/16 412,435
825,000 4.250%, 7/01/11 831,542
35,000 California State GO
3.625%, 5/01/07 34,978
25,000 California State GO, Series BT,
AMT
5.100%, 12/01/13 25,175
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
46
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
CALIFORNIA - (CONTINUED)
85,000 California Statewide Communities
Development Authority COP,
Kaiser Remarket, FSA, ETM
5.300%, 12/01/15 86,947
8,390,000 Contra Costa Home Mortgage
Finance RB, Multi-Family
Housing, MBIA, ETM (6)
6.481%, 9/01/17 3,983,824
175,000 Delta County Home Mortgage
Finance RB, Single-Family
Mortgage Backed Securities,
Series A, AMT, MBIA,
GNMA, FNMA
5.350%, 6/01/24 175,107
615,000 Los Angeles, Multi-Family
Housing RB, Colorado Terrace
Project, Series H, AMT, GNMA
4.350%, 11/20/12 613,315
500,000 Los Angeles, Multi-Family
Housing RB, Malibu Meadows II
Project, Series C, FNMA
3.780%, 4/15/28 500,000
3,915,000 Manteca, Financing Authority
Sewer RB, Series B, MBIA
5.000%, 12/01/33 3,921,068
500,000 Orange County, Apartment
Development RB, WLCO Local
Multi-Family Housing, Issue G,
Series 3, FNMA (5)
3.780%, 11/15/28 500,000
10,000 Placer County, Water Agency RB,
Middle Fork Project
3.750%, 7/01/12 9,990
75,000 Sacramento County, Sacramento
Main Detention Center COP,
MBIA, ETM
5.500%, 6/01/10 77,792
10,000 Sacramento County, Sanitation
Authority RB, ETM
5.125%, 12/01/10 10,017
203,000 San Bernardino County,
Transportation Authority RB,
Series A, FGIC, ETM
6.000%, 3/01/10 212,198
400,000 Simi Valley, Multi-Family
Housing RB, Lincoln Wood
Ranch, FHLMC (5)
3.780%, 6/01/10 400,000
Principal
Amount $ Value $
--------- -------
175,000 Southern California, Public
Power Authority RB,
Palo Verde Project,
Series A, ETM
5.000%, 7/01/17 175,180
130,000 State Public Works Board RB,
San Jose Facilities, Series A
7.750%, 8/01/06 131,088
200,000 Valley Center, Unified School
District GO, Capital
Appreciation, Series A,
MBIA (6)
4.521%, 9/01/17 108,164
------------
13,474,846
COLORADO - 6.2%
3,595,000 Adonea, Metropolitan District
No. 2 RB, Series B, (LOC:
Compass Bank)
4.375%, 12/01/15 3,566,528
770,000 Beacon Point, Metropolitan
District RB, Series B, (LOC:
Compass Bank)
4.375%, 12/01/15 761,961
100,000 Denver City & County COP,
Series A, MBIA,
Pre-Refunded @ 100 (4)
5.000%, 5/01/08 102,494
500,000 Denver City & County
Multi-Family Housing RB,
Cottonwood Creek, Series A,
FHLMC (1) (2) (3) (5)
3.820%, 4/15/14 500,000
1,760,000 High Plains, Metropolitan
District RB, (LOC:
Compass Bank)
4.375%, 12/01/15 1,746,061
500,000 Interlocken Metropolitan
District GO, Series A, RADIAN
5.750%, 12/15/11 532,240
810,000 State Educational & Cultural
Facilities Authority RB,
Charter School,
Peak to Peak, XLCA
3.000%, 8/15/09 793,136
365,000 State Educational & Cultural
Facilities Authority RB,
Parker Core Charter School,
XLCA
3.500%, 11/01/14 341,994
30,000 State Health Facility
Authority RB, Series A, ETM
5.350%, 11/01/16 30,689
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
47
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
COLORADO - (CONTINUED)
Teller County, COP, Assured
Guaranty
400,000 5.000%, 12/01/24 418,580
120,000 4.550%, 12/01/18 119,201
310,000 4.500%, 12/01/17 308,056
300,000 4.400%, 12/01/16 297,237
150,000 4.150%, 12/01/13 148,650
190,000 3.500%, 12/01/09 186,734
180,000 3.150%, 12/01/07 178,601
------------
10,032,162
CONNECTICUT - 0.6%
50,000 Greenwich, New Public Housing
Authority RB
5.250%, 5/01/08 51,311
785,000 Stamford, Multi-Family Housing
RB, Fairfield Apartments
Project, AMT,
Mandatory Put (8)
4.750%, 12/01/08 791,327
80,000 State Health & Educational
Facilities RB, Danbury
Hospital, ETM
7.875%, 7/01/09 84,667
------------
927,305
DELAWARE - 0.5%
825,000 State Economic Development
Authority RB, Delmarva
Power & Light,
Series D, AMT
5.650%, 7/01/28 863,569
------------
DISTRICT OF COLUMBIA - 0.6%
500,000 District of Columbia GO,
Series B, FSA, ETM
5.500%, 6/01/14 528,855
Hospital RB, Medlantic
Healthcare Group, Series A,
MBIA, ETM
100,000 5.750%, 8/15/14 102,556
410,000 5.750%, 8/15/26 420,430
------------
1,051,841
FLORIDA - 3.5%
50,000 Clearwater, Housing Authority
RB, Affordable Housing
Acquisition Program, FSA
4.950%, 6/01/07 50,420
Principal
Amount $ Value $
--------- -------
577,849 Dade County, Single-Family
Housing Finance Authority RB,
Series B-1, AMT, GNMA,
FNMA
6.100%, 4/01/27 582,264
Gulf Breeze, Local Government
RB, FGIC, Mandatory Put
(5) (8)
1,135,000 4.000%, 12/01/14 1,107,771
600,000 4.000%, 12/01/15 578,406
500,000 Hillsborough County School
Board COP, Series B, MBIA
5.000%, 7/01/18 521,780
175,000 Jacksonville, Electric
Authority RB, ETM
5.375%, 7/01/12 181,470
10,000 Jacksonville, Electric
Authority RB, Third
Installment, ETM
6.800%, 7/01/12 10,818
125,000 Jacksonville, Health
Facilities RB,
Daughters of Charity,
MBIA, ETM (1) (2) (3)
5.000%, 11/15/15 125,122
60,000 Orange County, Tourist
Division RB, AMBAC, ETM
6.000%, 10/01/16 60,224
50,000 Orange County, Tourist
Division RB, Orange County
Convention, AMBAC, ETM
9.250%, 9/01/07 52,078
1,060,000 Orange County, Tourist
Division RB, Series A,
AMBAC, ETM
6.250%, 10/01/13 1,120,918
510,000 Pinellas County, Housing
Finance Authority RB,
Multi-County Program,
Series A-3, AMT,
GNMA, FNMA
4.000%, 3/01/25 504,482
25,000 State GO, ETM
5.900%, 7/01/08 25,501
120,000 Tampa, Allegany Health System
RB, Saint Anthony, MBIA, ETM
5.125%, 12/01/15 120,011
65,000 Tampa, Allegany Health System
RB, Saint Joseph, MBIA, ETM
5.125%, 12/01/23 65,006
340,000 Tampa, Allegany Health System
RB, Saint Mary's, MBIA, ETM
5.125%, 12/01/23 340,031
190,000 Vero Beach, Electric RB, MBIA,
ETM
6.500%, 12/01/07 194,725
------------
5,641,027
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
48
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
GEORGIA - 2.1%
1,015,000 Cobb County, Kennestone
Hospital Authority RB,
Capital Appreciation
Certificates, Series 86A,
MBIA, ETM (6)
6.159%, 8/01/15 577,789
700,000 Dekalb County, Multi-Family
Housing RB, Winters Creek
Apartments Project, FNMA (5)
3.830%, 6/15/25 700,000
45,000 Fulco, Hospital Authority RB,
Saint Joseph Hospital, ETM
5.375%, 10/01/09 45,206
40,000 Gwinnett County, Water & Sewer
RB, MBIA, ETM
6.100%, 3/01/08 41,689
750,000 Marietta, Multi-Family Housing
RB, Franklin Walk Apartments
Project, FHLMC (5)
3.830%, 1/01/32 750,000
490,000 Municipal Electric Authority
Power RB, Capital Appreciation,
Series Q, MBIA (6)
6.785%, 1/01/12 343,108
1,000,000 Roswell, Multi-Family Housing
Authority RB, Azalea Park
Apartments Project, FNMA (5)
3.830%, 6/15/25 1,000,000
------------
3,457,792
IDAHO - 0.1%
205,000 State Housing & Finance
Association RB, Single-
Family Mortgage, Series D,
Class III, AMT
5.400%, 7/01/21 210,582
------------
ILLINOIS - 13.8%
5,000,000 Aurora, Multi-Family Housing RB,
Apartments At Fox, Series VY-A,
FNMA, FHLMC (5)
3.830%, 12/01/26 5,000,000
4,460,000 Bolingbrook, Sales Tax RB (6)
1.277%, 1/01/15 4,061,098
600,000 Calhoun & Greene Counties,
Community School District
No. 40 GO
4.700%, 1/01/16 602,088
2,000,000 Chicago, Kingsbury
Redevelopment Project TAN,
Series A
6.570%, 2/15/13 2,083,640
Principal
Amount $ Value $
--------- -------
1,000,000 Chicago, Lake Shore East SA
6.750%, 12/01/32 1,072,940
4,412,000 Pingree Grove, Special Services
Area, Cambridge Lakes Project,
Series 05-1
5.250%, 3/01/15 4,430,266
690,000 State Education Facilities
Authority RB, Capital
Appreciation,
Pre-Refunded @ 57.17 (4) (6)
4.861%, 7/01/09 334,098
850,000 State Educational Facilities
Authority RB, Capital
Appreciation, ETM (6)
6.078%, 7/01/14 519,452
1,120,000 State Financial Authority RB,
Medical District Common
Project, Series A, CIFG
4.125%, 9/01/18 1,085,146
850,000 State Financial Authority RB,
Metropolitis Project
5.000%, 12/01/24 840,930
1,430,000 State Health Facilities
Authority RB, Hinsdale
Hospital, Series A, ETM
6.950%, 11/15/13 1,563,648
275,000 State Health Facilities
Authority RB, Hospital of
Sisters Services, Series A,
FSA, Optional Put
4.500%, 12/01/23 277,054
575,000 Will County, Community School
District GO, Alternative
Revenue Source Larway
5.625%, 12/01/23 590,864
------------
22,461,224
INDIANA - 2.2%
Gary, Sanitation District,
Special Taxing District,
RADIAN
250,000 5.000%, 2/01/12 260,807
270,000 5.000%, 2/01/13 281,529
70,000 Indianapolis, Industrial
Utilities District RB, ETM
7.000%, 6/01/08 71,769
Maconaquah, School District RB,
Energy Management Financing
Project
286,756 5.000%, 1/01/12 296,033
301,093 5.000%, 1/01/13 310,755
316,148 5.000%, 1/01/14 326,347
261,339 4.750%, 1/01/10 265,821
273,752 4.750%, 1/01/11 279,156
232,329 4.000%, 1/01/07 232,187
241,622 4.000%, 1/01/08 241,197
251,287 4.000%, 1/01/09 250,119
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
49
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
INDIANA - (CONTINUED)
95,000 State Health Facility
Financing Authority RB,
Ancilla Systems,
MBIA, ETM
5.250%, 7/01/22 97,395
State Health Facility
Financing Authority RB,
Methodist Hospital,
Series A, AMBAC,
ETM
100,000 5.750%, 9/01/11 100,456
360,000 5.750%, 9/01/15 362,192
195,000 Wells County, Hospital
Authority RB, ETM
7.250%, 4/01/09 199,058
------------
3,574,821
IOWA - 0.1%
75,000 State Financial Authority
RB, Mercy Health System,
Series V, FSA, ETM
5.250%, 8/15/27 76,986
------------
KANSAS - 0.8%
220,000 Shawnee, Multi-Family Housing
RB, Thomasbrook Apartments,
Series A, AMT, FNMA
5.250%, 10/01/14 223,465
1,000,000 University of Kansas Hospital
Authority RB, KU Health
Systems, Series A, AMBAC
5.400%, 9/01/13 1,042,440
------------
1,265,905
KENTUCKY - 1.7%
40,000 Jefferson County, Health
Facilities RB, Alliant
Health Systems, MBIA, ETM
5.125%, 10/01/27 40,743
1,870,000 Marshall County, Public
Property Corporation RB,
Courthouse Facility Project
5.250%, 3/01/23 1,999,011
675,000 State Area Development
Districts Financing GO,
Henderson, Series G1
5.750%, 12/01/20 703,769
35,000 State Turnpike Authority RB,
ETM
6.125%, 7/01/07 35,488
------------
2,779,011
Principal
Amount $ Value $
--------- -------
LOUISIANA - 0.8%
310,000 Calcasieu Parish, Public
Transportation Authority RB,
Single-Family Mortgage,
Series A, AMT, GNMA, FNMA
5.850%, 10/01/32 314,449
1,000,000 State Public Facilities
Authority RB, Pennington
Medical Foundation Project
4.000%, 7/01/11 991,650
------------
1,306,099
MASSACHUSETTS - 2.0%
115,000 State Development Finance
Agency RB, Curry College,
Series A, ACA
3.875%, 3/01/15 110,703
545,000 State Development Finance
Agency RB, Seven Hills
Foundation & Affiliates,
RADIAN
4.500%, 9/01/16 546,744
500,000 State Health & Educational
Facilities Authority RB,
Cape Cod Healthcare,
Series C, RADIAN
5.250%, 11/15/17 521,645
1,000,000 State Health & Educational
Facilities Authority RB,
Mass General Hospital,
Series F, AMBAC
6.250%, 7/01/12 1,069,950
975,000 State Health & Educational
Facilities Authority RB,
Nichols College Issue,
Series C
6.000%, 10/01/17 1,027,767
------------
3,276,809
MICHIGAN - 0.9%
1,010,000 Kalamazoo, Hospital Finance
Authority RB, Borgess
Medical Center, Series A,
AMBAC, ETM
5.625%, 6/01/14 1,031,796
10,000 State Hospital Finance
Authority RB, Charity
Obligatory Group,
Series A, ETM
5.000%, 11/01/19 10,361
70,000 State Hospital Finance
Authority RB, Daughters of
Charity Hospital, ETM
5.250%, 11/01/10 70,782
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
50
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
MICHIGAN - (CONTINUED)
10,000 State Hospital Finance
Authority RB, Mercy Health
Services RB, MBIA, ETM
5.750%, 8/15/26 10,343
45,000 State Hospital Finance
Authority RB, Mercy Health
Services, Series Q,
AMBAC, ETM
5.375%, 8/15/26 45,643
70,000 State Hospital Finance
Authority RB, Saint John
Hospital, AMBAC, ETM
5.250%, 5/15/26 71,471
State Hospital Finance
Authority RB, Saint John
Hospital, Series A,
AMBAC, ETM
240,000 6.000%, 5/15/13 250,766
25,000 5.750%, 5/15/16 25,759
------------
1,516,921
MINNESOTA - 0.5%
1,140,000 Burnsville, Hospital
System RB, Fairview
Community Hospitals,
ETM (6)
5.780%, 5/01/12 771,050
45,000 Coon Rapids, Hospital RB,
Health Central, ETM
7.625%, 8/01/08 46,702
------------
817,752
MISSISSIPPI - 1.3%
310,000 Horn Lake SA, Desoto Commons,
AMBAC
5.000%, 4/15/17 323,225
Meridian, Housing Authority
RB, Series A, AMT (1)
1,200,000 5.000%, 9/01/15 1,200,108
655,000 5.000%, 9/01/25 644,035
------------
2,167,368
MISSOURI - 3.0%
775,000 Boone County, Industrial
Development Authority RB,
Otscon Project, AMT,
Mandatory Put, (LOC: Boone
County National Bank) (8)
5.125%, 5/01/12 770,536
Principal
Amount $ Value $
--------- -------
945,000 Brentwood, Tax Increment TA,
Brentwood Pointe Project
4.500%, 5/01/23 941,655
820,000 Brentwood, Tax Increment TA,
Brentwood Square Project
4.500%, 5/01/22 801,698
750,000 Hannibal, Industrial
Development Authority Tax,
Stardust-Munger Project
4.700%, 4/15/23 726,960
Ozark Centre, Transportation
Development District RB
175,000 5.375%, 9/01/32 172,993
200,000 4.875%, 9/01/24 199,988
State Development Finance
Board Infrastructure
Facilities RB, Branson
Landing Project, Series A
180,000 4.250%, 6/01/13 174,870
100,000 4.125%, 6/01/12 97,627
130,000 4.000%, 6/01/10 127,843
125,000 4.000%, 6/01/11 122,252
500,000 State Development Finance
Board Infrastructure
Facility TA, Triumph Foods
Project, Series A
5.250%, 3/01/25 511,565
260,000 State Housing Development
Community RB, Single-Family
Homeown Loan Program,
Series A-1, GNMA
5.000%, 3/01/17 260,855
------------
4,908,842
MONTANA - 2.2%
3,315,000 Forsyth, Pollution Control RB,
Northwestern Colstrip,
AMBAC (7)
4.650%, 8/01/23 3,322,293
State Board Investment RB,
Payroll Tax Workers
Compensation Project, MBIA,
ETM
165,000 6.875%, 6/01/11 174,341
115,000 6.700%, 6/01/06 115,271
------------
3,611,905
NEBRASKA - 0.8%
15,000 Scotts Bluff County, Hospital
Authority No. 1 RB, Regional
West Medical Center
6.375%, 12/15/08 15,022
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
51
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
NEBRASKA - (CONTINUED)
State Educational Finance
Authority RB, Dana College,
Series A
200,000 4.500%, 3/15/13 195,936
195,000 4.500%, 3/15/14 189,942
180,000 4.350%, 3/15/12 175,973
State Educational Finance
Authority RB, Dana College,
Series D
170,000 5.400%, 3/15/25 171,056
240,000 5.200%, 3/15/20 241,171
50,000 4.950%, 3/15/16 49,881
50,000 4.850%, 3/15/15 49,784
45,000 4.700%, 3/15/13 44,841
50,000 4.700%, 3/15/14 49,640
45,000 4.550%, 3/15/12 44,769
40,000 4.450%, 3/15/11 39,773
------------
1,267,788
NEVADA - 0.9%
1,440,000 Rural Housing Authority RB,
Single-Family Housing,
Series A, GNMA, FNMA (5)
4.500%, 8/01/38 1,482,005
------------
NEW HAMPSHIRE - 0.1%
185,000 State Health & Educational
Facilities Authority RB,
Speare Memorial Hospital
5.000%, 7/01/12 185,327
------------
NEW JERSEY - 4.2%
150,000 Burlington County, Bridge
Commission RB, County
Guaranteed Governmental
Leasing Program
5.250%, 8/15/15 160,036
3,500,000 Cliffside Park GO, BAN (9)
5.190%, 2/14/07 3,495,135
Health Care Facilities RB,
Allegany Health, Our Lady
of Lourdes, MBIA, ETM
30,000 5.200%, 7/01/18 30,679
50,000 5.125%, 7/01/13 51,243
145,000 Health Care Facilities RB,
Community Memorial Hospital
Toms River, ETM
6.750%, 7/01/09 151,200
Principal
Amount $ Value $
--------- -------
75,000 Health Care Facilities RB,
Mercer Medical Center, ETM
7.000%, 7/01/08 77,395
1,265,000 State Economic Development
Authority RB, Wanaque
Convalescent Center Project,
Series A,
(LOC: Sovereign Bank)
3.750%, 2/15/12 1,244,216
1,500,000 Union County, Industrial
Pollution Control RB,
American Cyanamid
(GA: Wyeth)
5.800%, 9/01/09 1,565,925
------------
6,775,829
NEW MEXICO - 0.1%
80,000 State Mortgage Finance
Authority RB, Single-Family
Mortgage, Series B-2, AMT,
GNMA, FNMA, FHLMC
5.550%, 1/01/30 81,309
60,000 State Severance Tax RB,
Pre-Refunded @ 100 (4)
5.000%, 7/01/07 60,907
------------
142,216
NEW YORK - 1.5%
150,000 Hempstead Town, Industrial
Development Agency RB,
Adelphi University Civic
Facilities
5.250%, 2/01/13 154,488
275,000 Metropolitan Transportation
Authority RB, Commuter
Facilities, Series B,
AMBAC, ETM
5.125%, 7/01/24 284,686
Metropolitan Transportation
Authority RB, Commuter
Facilities, Series D,
MBIA, ETM
45,000 5.125%, 7/01/22 46,154
165,000 5.000%, 7/01/12 168,882
25,000 4.900%, 7/01/10 25,574
Metropolitan Transportation
Authority RB, Grand Central
Terminal - 2, AMT, FSA, ETM
50,000 5.500%, 7/01/12 50,157
55,000 5.400%, 7/01/11 55,151
15,000 Metropolitan Transportation
Authority RB, Series B-2,
MBIA, ETM
5.000%, 7/01/17 15,501
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
52
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
NEW YORK - (CONTINUED)
100,000 Metropolitan Transportation
Authority RB, Service
Contract, Series Q,
AMBAC, ETM
5.125%, 7/01/12 102,495
375,000 Metropolitan Transportation
Authority RB, Service
Contract, Series R, ETM
5.500%, 7/01/11 391,943
185,000 State Urban Development RB,
Capital Appreciation (6)
5.746%, 1/01/11 139,712
75,000 State Urban Development RB,
Capital Appreciation,
MBIA (6)
5.782%, 1/01/11 56,571
100,000 State Urban Development RB,
Capital Appreciation,
Series O, FSA (6)
5.830%, 1/01/11 75,428
33,000 Suffolk County, Water
Authority RB, Waterworks,
Series V, ETM
7.000%, 6/01/06 33,098
345,000 Triborough Bridge & Tunnel
Authority RB, General
Purpose, Series A, ETM
5.000%, 1/01/24 345,345
500,000 Triborough Bridge & Tunnel
Authority RB, General
Purpose, Series A,
MBIA, ETM
5.000%, 1/01/24 500,935
50,000 Triborough Bridge & Tunnel
Authority RB, General
Purpose, Series B, ETM
5.100%, 1/01/10 51,429
------------
2,497,549
NORTH CAROLINA - 0.6%
345,000 Mecklenburg County, Multi-
Family Housing RB, Little
Rock Apartments, AMT, FNMA
3.500%, 1/01/12 330,544
360,000 Pitt County, Memorial Hospital
RB, ETM
5.250%, 12/01/21 371,923
210,000 State Medical Care Community
Hospital RB, Saint Joseph
Hospital Project, AMBAC,
ETM
5.100%, 10/01/14 211,147
------------
913,614
Principal
Amount $ Value $
--------- -------
NORTH DAKOTA - 0.3%
State Housing Finance Agency
RB, Housing Finance Program
Home Mortgage, Series B,
AMT, SPA-FHLB
250,000 4.125%, 7/01/11 245,692
210,000 4.000%, 7/01/10 205,750
------------
451,442
OHIO - 0.3%
Columbus, Sewer Improvement
Bonds GO, ETM
170,000 6.750%, 9/15/07 171,452
150,000 6.000%, 9/15/11 150,865
50,000 State Building Authority RB,
State Facilities,
Administration Building
Fund Projects, Series A,
Pre-Refunded @ 101 (4)
5.250%, 10/01/08 52,226
100,000 Wood County, Industrial
Development RB, Schutz
Container Systems Project,
Series B, (LOC: Bayerische
Hypo-und Vereinsbank) (5)
7.125%, 6/01/13 105,953
------------
480,496
OKLAHOMA - 0.5%
600,000 State Home Finance Authority
RB, Single-Family Mortgage,
Series B, AMT, GNMA,
FNMA, FHLMC
4.250%, 9/01/25 599,940
230,000 Tulsa County, Home Finance
Authority RB, Single-Family
Mortgage, FGIC, ETM
6.900%, 8/01/10 244,437
------------
844,377
OREGON - 0.8%
825,000 Portland, Housing Authority
RB, New Columbia Development,
Capital Funding Program, AMT
4.300%, 10/01/15 810,917
475,000 State Facilities Authority RB,
College Inn Student Housing,
Series B
6.250%, 7/01/11 475,988
------------
1,286,905
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
53
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
PENNSYLVANIA - 3.5%
170,000 Allegheny County, Hospital
Development Authority RB,
Childrens Hospital of
Pittsburgh, MBIA, ETM
5.300%, 7/01/26 179,088
725,000 Allegheny County, Hospital
Development Authority RB,
Jefferson Regional Medical
Center, Series B (7)
5.000%, 5/01/18 731,424
60,000 Allegheny County, Hospital
Development Authority RB,
Pittsburgh Mercy Health
Systems, AMBAC, ETM
5.625%, 8/15/26 61,476
10,000 Berks County GO, Second
Series, MBIA
3.300%, 11/15/09 9,817
400,000 Chester, Upland School
District GO
4.200%, 5/15/13 397,108
970,000 Chester, Upland School
District GO, XLCA
4.850%, 9/15/16 1,011,235
100,000 Dauphin County, General
Authority RB, AMBAC,
Mandatory Put (8)
4.550%, 6/01/08 101,293
80,000 Dauphin County, General
Authority RB, Hapsco-
Western Pennsylvania
Hospital Project,
Series A-1, MBIA, ETM
5.500%, 7/01/13 85,742
105,000 Erie, Higher Education
Building Authority RB,
Gannon University Project,
AMBAC, ETM
7.375%, 6/01/08 108,683
50,000 Hempfield, School District GO,
ETM
7.200%, 10/15/09 53,159
400,000 Montgomery County, Industrial
Development Authority RB,
Adult Communities Total
Services, Series B
5.750%, 11/15/17 411,936
1,125,000 Philadelphia, Multi-Family
Housing Redevelopment
Authority RB, Pavilion
Apartments Project,
Series A, AMT, HUD
Section 236
4.250%, 10/01/16 1,098,202
Principal
Amount $ Value $
--------- -------
500,000 Philadelphia, School District
GO, Series D, FSA
5.000%, 6/01/15 528,130
40,000 Pittsburgh GO, Series C, ETM
7.000%, 3/01/07 41,066
755,000 State Higher Educational
Facilities Authority RB,
Allegheny Delaware Valley
Obligation, Series A, MBIA
5.700%, 11/15/11 816,283
55,000 State Higher Educational
Facilities Authority RB,
Tenth Series, ETM
6.900%, 7/01/07 55,918
------------
5,690,560
RHODE ISLAND - 0.8%
55,000 State Depositors Economic
Protection RB, Series B,
MBIA, ETM
6.000%, 8/01/17 57,975
Woonsocket, Housing Authority
RB, Capital Funds Housing
Project
385,000 4.500%, 9/01/10 395,256
400,000 4.500%, 9/01/11 411,708
420,000 4.500%, 9/01/12 431,403
------------
1,296,342
SOUTH CAROLINA - 0.2%
325,000 Greenville County, Airport
RB, Donaldson Industrial
Air Park Project, AMT
6.125%, 10/01/17 344,312
------------
TENNESSEE - 1.5%
230,000 Nashville & Davidson Counties,
Metropolitan Government Cab
Converter RB, FGIC
7.700%, 1/01/12 263,541
500,000 Nashville & Davidson
Counties, Metropolitan
Government Health &
Educational Facilities
Board RB, RADIAN
5.100%, 8/01/16 507,625
175,000 State GO, Series B, ETM
5.500%, 5/01/23 180,425
State School Board Authority
RB, Series B (10)
40,000 5.250%, 5/01/10 40,646
1,275,000 5.000%, 5/01/09 1,295,362
120,000 Wilson County, Health &
Educational Facilities
Board RB, University
Medical Center, ETM
8.375%, 8/01/08 123,260
------------
2,410,859
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
54
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
TEXAS - 4.9%
2,020,000 Allen, Independent School
District GO, Capital
Appreciation, PSF,
Pre-Refunded @ 40.017
(4) (6)
5.977%, 2/15/10 697,284
2,025,000 Allen, Independent School
District GO, Capital
Appreciation, PSF,
Pre-Refunded @ 42.722
(4) (6)
5.938%, 2/15/10 746,273
750,000 Austin, Convention Enterprises
RB, Trust Certificates,
Series B, (Surety: ZC
Specialty Insurance)
5.750%, 1/01/16 794,325
65,000 Denison, Hospital Authority
RB, Texoma Medical
Center, ETM
7.125%, 7/01/08 67,290
Fort Bend County, Municipal
Utility District No. 23 GO,
FGIC
45,000 6.500%, 9/01/08 47,643
65,000 6.500%, 9/01/09 70,270
70,000 6.500%, 9/01/10 77,191
45,000 6.500%, 9/01/11 50,436
95,000 5.000%, 9/01/16 98,369
250,000 Greater Greenspoint,
Redevelopment Authority RB,
Tax Increment Contract,
RADIAN
5.250%, 9/01/10 261,750
85,000 Harris County, Health
Facilities Development RB,
St. Lukes Episcopal
Hospital Project, ETM
6.625%, 2/15/12 85,200
155,000 Houston, Airport System RB,
ETM
7.600%, 7/01/10 168,829
25,000 Houston, Sewer System RB,
FGIC, ETM
6.375%, 10/01/08 25,785
Retama, Development Corporate
Special Facilities RB,
Retama Racetrack, ETM (9)
2,000,000 10.000%, 12/15/17 2,796,340
500,000 8.750%, 12/15/11 589,360
50,000 Sendero, Public Facilities RB,
Crown Meadows Project,
Series A, FHLMC
4.250%, 6/01/13 50,184
Principal
Amount $ Value $
--------- -------
1,500,000 South Lake GO, AMBAC,
Pre-Refunded @ 26.765
(4) (6)
6.273%, 2/15/09 360,360
3,145,000 South Lake GO, AMBAC,
Pre-Refunded @ 32.616
(4) (6)
6.210%, 2/15/09 920,730
25,000 Travis County, Health
Facility Development RB,
Daughters of Charity,
MBIA, ETM
5.000%, 11/01/20 25,249
------------
7,932,868
UTAH - 0.0%
30,000 Intermountain Power Agency RB,
Series A, ETM
5.000%, 7/01/21 30,029
------------
VIRGINIA - 0.4%
740,000 Norfolk, Packaging Systems RB,
Series A, MBIA
4.000%, 2/01/19 700,203
------------
WASHINGTON - 0.3%
489,445 Nooksack, Indian Tribe RB
5.500%, 2/23/11 482,295
------------
WEST VIRGINIA - 0.1%
150,000 State Economic Development
Authority, Industrial
Development RB, Central
Supply Project, AMT,
(LOC: BB&T)
5.500%, 5/15/10 153,209
------------
WISCONSIN - 0.9%
1,365,000 Oshkosh, Industrial
Development Authority RB,
Don Evans Project, AMT,
Mandatory Put,
(LOC: Marshall & Ilslay) (8)
5.500%, 12/01/11 1,390,621
50,000 State Health & Educational
Facilities RB, ACA
6.000%, 5/15/16 51,263
10,000 State Transportation RB,
Series A
5.500%, 7/01/11 10,777
60,000 Winnebago County, Promissory
Notes GO
4.375%, 4/01/12 60,993
------------
1,513,654
------------
TOTAL MUNICIPAL BONDS
(Cost $149,202,709) 147,851,605
------------
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
55
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
CORPORATE
OBLIGATIONS - 3.4%
1,384,000 BFL Funding VI (11)
5.000%, 4/01/08 1,362,825
801,802 IIS/Syska Holdings Energy (11)
3.900%, 8/15/08 723,305
250,000 Kidspeace National Centers of
Georgia, USDA (1) (2) (3) (5)
4.500%, 12/01/28 247,925
819,648 Landmark Leasing (11)
6.200%, 10/01/22 773,108
2,489,861 USDA Airtanker (11)
8.000%, 2/01/08 2,461,726
------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $5,746,475) 5,568,889
------------
Shares
------
SHORT-TERM
INVESTMENTS - 7.2%
7,858,000 BlackRock Institutional Muni
Fund Portfolio, 3.44% (12) 7,858,000
3,877,323 SEI Tax Exempt Trust
Institutional Tax Free Fund,
Class A, 3.38% (12) 3,877,323
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $11,735,324) 11,735,323
------------
TOTAL
INVESTMENTS - 101.5%
(Cost $166,684,508) 165,155,817
------------
OTHER ASSETS LESS
LIABILITIES - (1.5)% (2,521,417)
------------
NET ASSETS - 100.0% $162,634,400
============
(1) Private Placement Security.
(2) Security considered restricted. (See Note 2 in Notes to Financial
Statements).
(3) Security considered illiquid. On April 30, 2006, the value of these
securities amounted to $1,126,219 representing 0.7% of the net assets of
the Fund.
(4) Pre-Refunded Security -- The maturity date shown is the pre-refunded date.
(5) Variable Rate Security -- Rate disclosed is as of April 30, 2006.
(6) Zero Coupon Security -- Rate disclosed is the effective yield at time of
purchase.
(7) Security purchased on a when-issued basis.
(8) Mandatory Put Security -- The mandatory put date is shown as the maturity
date on the Schedule of Investments.
(9) Security is taxable.
(10) Economically Defeased Security.
(11) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally to qualified institutions. On April 30, 2006, the
value of these securities amounted to $5,320,964, representing 3.3% of the
net assets of the Fund.
(12) Rate shown is the 7-day effective yield as of April 30, 2006.
AMT -- Income from security may be subject to alternative minimum tax.
BAN -- Bond Anticipation Note
CIFG -- Cornell/Intel Faculty Group
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
GO -- General Obligation
HUD -- Department of Housing and Urban Development
LOC -- Letter of Credit
RB -- Revenue Bond
SA -- Special Assessment
TA -- Tax Allocation
TAN -- Tax Anticipation Note
Guaranteed as to principal and interest by the organization identified below:
ACA -- American Capital Access
ADFA -- ADFA Guaranty
AMBAC -- -American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Company
FSA -- Financial Security Assurance
GA -- Guaranteed Agreement
MBIA -- Municipal Bond Investors Assurance
PSF -- PSF Guaranty
SPA -- SPA Guaranty
RADIAN -- RADIAN Guaranty U
SDA -- USDA Guaranty
XLCA -- XL Capital Assurance
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
56
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - 88.1%
ARIZONA - 2.8%
65,000 Maricopa County, Hospital RB,
Intermediate Community-Sun
City, ETM
8.625%, 1/01/10 70,966
79,000 Maricopa County, Hospital RB,
St. Lukes Hospital Medical
Center Project, ETM
8.750%, 2/01/10 86,446
80,000 Oro Valley, Oracle Road
Improvement District GO
5.000%, 1/01/07 80,518
270,000 Pinal County, Industrial
Development Authority,
Correctional Facilities RB,
Florence West Prison,
Series A, ACA
3.875%, 10/01/09 266,636
3,900,000 Tucson, Industrial
Development Authority RB,
Family Housing Residential
Project, Series A, FNMA (1)
3.830%, 1/15/32 3,900,000
------------
4,404,566
ARKANSAS - 9.3%
475,000 Fayetteville, Sales &
Use Tax SA
2.750%, 12/01/09 466,246
760,000 Little Rock, Library
Construction Improvement
GO, Series A
4.350%, 3/01/24 750,644
155,000 Maumelle, Capital Improvement
GO, Series A
3.750%, 3/01/20 146,325
210,000 Maumelle, Capital Improvement
GO, Series B, MBIA
3.600%, 9/01/20 205,615
10,930,000 Pulaski County, Lease
Purchase Authority RB,
Series A, FHLMC
4.870%, 3/01/07 10,930,000
215,000 Rogers, Sales & Use Tax RB,
Series A, FGIC
4.125%, 9/01/23 213,660
1,805,000 Springdale, Sales &
Use Tax RB, MBIA
4.000%, 7/01/16 1,766,355
------------
14,478,845
Principal
Amount $ Value $
--------- -------
CALIFORNIA - 7.6%
103,688 Cabazon Band Mission Indians
RB (2) (3) (4)
11.950%, 7/14/06 104,087
2,200,000 California Health Facilities
Funding Authority RB,
California-Nevada-Methodist
Project (5)
4.250%, 7/01/11 2,217,446
100,000 California Water Residential
Development GO, Series M
4.875%, 10/01/07 100,092
500,000 Contra Costa County,
Multi-Family Housing
Authority RB, Delta Square
Apartments Project,
Series H, FNMA (1)
3.780%, 10/15/29 500,000
5,090,000 Manteca, Financing Authority
Sewer RB, Series B, MBIA
5.000%, 12/01/33 5,097,890
1,000,000 Orange County, Apartment
Development RB, Harbor
Pointe Issue D, FHLMC (1)
3.780%, 12/01/22 1,000,000
1,000,000 Orange County, Apartment
Development RB, WLCO Local
Multi-Family Housing
Issue G, Series 1, FNMA (1)
3.780%, 11/15/28 1,000,000
415,000 Placer County, Water Agency
RB, Middle Fork Project
3.750%, 7/01/12 414,597
55,000 Sacramento County, Sanitation
District RB, ETM
5.000%, 12/01/08 55,072
400,000 San Bernadino, Multi-Family
Housing Authority RB,
Somerset Apartments
Project, Series A, FNMA (1)
3.780%, 5/15/29 400,000
1,000,000 Statewide Communities
Development Authority RB,
Daughters of Charity
Health, Series F
5.000%, 7/01/06 1,002,080
------------
11,891,264
COLORADO - 5.9%
4,200,000 Arapahoe County, Multi-Family
Housing Authority RB,
Stratford Station Project,
FNMA (1)
3.830%, 11/01/17 4,200,000
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
57
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
COLORADO - (CONTINUED)
500,000 Central Colorado Water
Conservancy District GO,
Well Augmentation
Sub-District
3.875%, 3/01/07 495,040
55,000 Denver City & County Multi-
Family Housing RB, Buerger
Brothers Project, Series A,
AMT, FHA
5.100%, 11/01/07 55,354
3,000,000 Denver City & County
Multi-Family Housing RB,
Cottonwood Creek, Series A
(1) (2) (3)
3.820%, 4/15/14 3,000,000
135,000 Denver, West Metropolitan
District GO
3.300%, 12/01/06 134,530
El Paso County, Academy Water
& Sanitation District GO
120,000 3.650%, 11/15/07 118,860
115,000 3.250%, 11/15/06 114,410
50,000 Milliken, Sales &
Use Tax RB (5)
2.000%, 12/01/06 49,353
525,000 State Educational & Cultural
Facilities RB, Northwest
Nazarene Project
4.500%, 11/01/06 525,966
210,000 State Housing & Finance
Authority RB, Single-Family
Program Series C-2, AMT
8.400%, 10/01/21 219,532
355,000 State Housing & Fin RB,
Single-Family Project,
Series D2, AMT
6.350%, 11/01/29 359,938
------------
9,272,983
CONNECTICUT - 0.5%
810,000 Stamford, Multi-Family
Housing RB, Fairfield
Apartments Project,
AMT, Mandatory Put (7)
4.750%, 12/01/08 816,529
------------
DELAWARE - 1.5%
1,160,000 State Economic Development
Authority RB, Water
Development, Wilmington
Suburban, Series B
6.450%, 12/01/07 1,204,939
Principal
Amount $ Value $
--------- -------
State Health Facilities
Authority RB, Beebe Medical
Center Project, Series A
560,000 5.000%, 6/01/06 560,638
455,000 5.000%, 6/01/07 460,428
160,000 State Housing Authority RB,
Single-Family Mortgage,
Series A-1, AMT, MBIA
5.300%, 7/01/11 160,581
------------
2,386,586
DISTRICT OF COLUMBIA - 0.2%
295,000 Housing Finance Agency RB,
1330 7th Street Apartments,
Series A, AMT, FHA
3.000%, 12/01/09 286,215
------------
FLORIDA - 0.6%
115,000 Broward County, Water & Sewer
Utilities Systems RB,
Pre-Refunded @ 100 (8)
6.875%, 9/01/06 116,095
15,000 Dunedin, Health Facilities
Authority RB, Mease
Hospital, ETM
7.600%, 10/01/08 15,665
365,000 Jacksonville, Educational
Facilities RB, Edward
Water College Project,
Mandatory Put, (LOC:
Wachovia Bank) (7)
3.600%, 10/01/06 363,510
10,000 Jacksonville, Electric
Authority RB, Third
Installment, ETM
6.800%, 7/01/12 10,818
335,000 State Board of Education
Capital Outlay GO
8.400%, 6/01/07 344,149
40,000 State GO, ETM
5.900%, 7/01/08 40,802
------------
891,039
GEORGIA - 0.4%
205,000 Columbus, Water & Sewer RB,
ETM
8.000%, 5/01/06 205,070
445,000 State Housing & Finance
Authority RB, Single-Family
Mortgage Program,
Sub-Series D-3
4.850%, 6/01/17 445,133
------------
650,203
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
58
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
IDAHO - 0.1%
50,000 State Housing & Finance
Association RB, Single-Family
Mortgage Program, Sub-Series
G-2, AMT
5.750%, 1/01/14 50,889
25,000 State Housing & Finance
Association RB, Single-Family
Mortgage Program, Sub-Series
H-2, AMT, FHA
5.850%, 1/01/14 25,035
------------
75,924
ILLINOIS - 12.3%
2,900,000 Aurora, Multi-Family Housing
RB, Apartments At Fox,
Series VY-A, FNMA
3.830%, 12/01/26 2,900,000
5,000,000 Bolingbrook, Sales Tax
RB (6)
5.150%, 1/01/26 4,547,900
35,000 Chicago, Single-Family
Mortgage RB, Series B,
AMT, GNMA, FNMA, FHLMC
6.950%, 9/01/28 35,075
65,000 Chicago, Transportation
Authority RB, Capital
Grant, Series A, AMBAC
4.250%, 6/01/08 65,029
35,000 Dupage County, Water &
Sewer RB, ETM, MBIA
10.500%, 1/01/07 36,511
2,500,000 Oak Park, Industrial
Development RB, Oak
Park Il, Prairie Court,
Mandatory Put (7)
5.500%, 12/01/06 2,532,650
140,000 Pekin, Single-Family Mortgage
RB, ETM
7.400%, 12/01/08 147,696
110,000 Peoria, New Public Housing
RB
4.875%, 10/01/06 110,595
7,060,000 Pingree Grove, Special
Services Area, Cambridge
Lakes Project, Series 05-1
5.250%, 3/01/15 7,089,229
875,000 State Health Facilities
Authority RB, Hinsdale,
Series A, ETM, AMBAC
7.000%, 11/15/19 915,171
805,000 State Health Facilities
Authority RB, Lutheran,
Series C, FSA
7.000%, 4/01/08 836,459
------------
19,216,315
Principal
Amount $ Value $
--------- -------
INDIANA - 1.0%
305,000 Fairfield, Junior-Senior High
School Building RB
5.150%, 1/01/07 305,335
675,000 Hammond, Local Public
Improvement RB, Series A,
FGIC
5.100%, 3/15/07 675,722
100,000 Lawrence, Multi-Family Housing
RB, Pinnacle Apartments
Project, AMT, FNMA,
Mandatory Put (7)
5.150%, 1/01/08 101,888
150,000 State Health Facilities
Financing Authority, Hospital
RB, Sisters of St. Francis
Health, Series A, MBIA
5.000%, 11/01/09 155,336
310,000 State Housing Finance
Authority RB, Single-Family
Mortgage, Series A-3, AMT,
GNMA, FNMA
5.375%, 1/01/23 315,292
------------
1,553,573
IOWA - 0.3%
125,000 Polk County, Hospital
Facility RB, ETM
7.750%, 7/01/06 125,855
10,000 Sioux City, Hospital RB,
Series O, MBIA, ETM
5.250%, 8/15/10 10,011
35,000 Sioux City, Hospital RB,
St. Lukes Medical Center
Project, ETM
6.375%, 9/01/06 35,312
350,000 State Financial Authority,
Solid Waste Disposal RB,
IPSCO Project, AMT,
Mandatory Put (7)
6.000%, 6/01/07 353,808
------------
524,986
KANSAS - 3.0%
2,510,000 Sedgwick & Shawnee Counties,
Single-Family Mortgage RB,
Series A, AMT, GNMA,
FNMA (9)
5.600%, 6/01/27 2,581,611
149,000 Wichita, Hospital RB, ETM
6.750%, 10/01/07 152,382
1,025,000 Wyandotte County, Sales
Tax RB, 1st Lien, Area B,
(LOC: Citibank NA)
3.750%, 12/01/12 1,014,186
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
59
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
KANSAS - (CONTINUED)
1,000,000 Wyandotte County, Sales
Tax RB, 1st Lien, Area C,
(LOC: Citibank NA)
3.850%, 12/01/13 990,480
------------
4,738,659
KENTUCKY - 1.0%
1,320,000 State Area Development
Districts Financing GO,
Henderson, Series G1
5.750%, 12/01/20 1,376,258
80,000 State Turnpike Authority
RB, ETM (1)
6.625%, 7/01/08 82,394
105,000 State Turnpike Authority
Toll Road RB, ETM
6.125%, 7/01/08 107,383
------------
1,566,035
LOUISIANA - 0.4%
185,000 Calcasieu Parish, Public
Transportation Authority
RB, Single-Family Mortgage,
Series A, AMT, GNMA, FNMA
5.850%, 10/01/32 187,655
60,000 Jefferson Parish, Hospital
Service District No. 1
RB, ETM
7.250%, 1/01/09 63,013
75,000 Monroe-West Monroe, Single-
Family Mortgage RB, ETM
7.200%, 8/01/10 79,659
235,000 Orleans Parish, School Board
GO, MBIA, ETM (6)
7.018%, 2/01/08 206,565
40,000 State Public Facilities
Authority Hospital RB,
Pendleton Memorial Methodist
Hospital, ETM
5.000%, 6/01/08 40,737
------------
577,629
MARYLAND - 1.9%
2,180,000 Baltimore, Unrefunded
Capital Appreciation
GO, Series A, FGIC (6)
6.046%, 10/15/09 1,825,445
1,115,000 State Health & Higher
Education RB, Howard
County General Hospital,
ETM
5.500%, 7/01/13 1,141,225
------------
2,966,670
Principal
Amount $ Value $
--------- -------
MASSACHUSETTS - 0.9%
1,200,000 State Health & Educational
Facilities Authority RB,
Daughters of Charity-
Carney, Series D,
Pre-Refunded @ 100 (8)
6.100%, 7/01/06 1,205,028
125,000 State Health & Educational
Facilities Authority RB,
MBIA
5.000%, 7/01/13 125,216
------------
1,330,244
MICHIGAN - 2.4%
700,000 Detroit/Wayne County, Stadium
Authority RB, FGIC
5.250%, 2/01/09 721,455
750,000 Grand Valley, State University
RB, AMBAC
5.150%, 10/01/09 761,752
960,000 Kalamazoo, Hospital Finance
Authority RB, Borgess
Medical Center, Series A,
AMBAC, ETM
5.500%, 6/01/08 980,640
65,000 Kalamazoo, Hospital Finance
Authority RB, Borgess
Medical Center, Series A,
FGIC, ETM
6.125%, 7/01/07 65,127
350,000 Kalamazoo, Hospital Finance
Authority RB, Bronson
Methodist, MBIA
5.500%, 5/15/08 360,252
800,000 State Hospital Finance
Authority RB, Bay Medical
Center, Series A, FSA
5.125%, 7/01/09 820,520
------------
3,709,746
MINNESOTA - 0.3%
310,000 Alexandria, Industrial
Development RB, Seluemed
Limited LLP Project, AMT,
(LOC: First Trust NA)
5.300%, 3/01/10 310,679
85,000 Burnsville, Hospital System
RB, Fairview Community
Hospitals, ETM (6)
4.034%, 5/01/12 57,490
80,000 St. Paul, Housing &
Redevelopment Authority
TA, Downtown & 7th Place
Project, AMBAC, ETM
5.300%, 9/01/06 80,104
------------
448,273
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
60
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
MISSISSIPPI - 2.1%
1,235,000 Mississippi Business Finance
RB, TT&W Farm Products
Project, AMT, (LOC:
National Bank)
6.900%, 7/01/10 1,240,249
260,000 Mississippi Development Bank
RB, Special Obligation,
Three Rivers Solid Waste
Project
4.650%, 7/01/06 260,000
1,860,000 Mississippi Home Corporation
RB, Single-Family Mortgage,
Series A, AMT, FNMA,
GNMA, USDA
3.150%, 6/01/20 1,829,254
------------
3,329,503
MISSOURI - 2.1%
1,090,000 Boone County, Industrial
Development Authority RB,
Otscon Project, AMT,
Mandatory Put, (LOC: Boone
County National Bank) (7)
5.125%, 5/01/12 1,083,722
Pacific, Industrial
Development Authority RB,
Clayton Project, AMT, (LOC:
Commerce Bank NA)
720,000 6.450%, 5/01/17 727,934
720,000 6.200%, 5/01/12 727,942
100,000 St. Charles County,
Industrial Development
Authority RB, Garden View
Care Center Project, AMT,
(LOC: U.S. Bank NA)
5.400%, 11/15/16 101,699
500,000 St. Louis, Industrial
Development Authority RB,
Multi-Family Housing,
Blumeyer General Apartments
Project, AMT, Mandatory Put,
(GA: AIG Retirement Services)
(7)
3.125%, 8/20/06 497,025
200,000 St. Louis, Industrial
Development Authority RB,
Multi-Family Housing,
Vaughn Elderly Apartments
Project, AMT, Mandatory Put,
(GA: Sun America AIG) (7)
4.000%, 12/20/06 198,922
------------
3,337,244
Principal
Amount $ Value $
--------- -------
NEBRASKA - 0.1%
100,000 Madison County, Hospital
Authority RB, Faith
Regional Healthcare
Services Project, RADIAN
4.850%, 7/01/09 102,656
------------
NEVADA - 0.6%
530,000 Carson City, Hospital RB,
Tahoe Hospital Project,
Series A, RADIAN
2.300%, 9/01/07 516,055
345,000 Henderson, Local Improvement
Districts SA, Lake
Las Vegas, Sub-Series B-2
3.900%, 8/01/07 341,657
70,000 Las Vegas, Downtown
Redevelopment Agency RB,
Series A, BIG, ETM
7.100%, 6/01/06 70,211
35,000 State Municipal Bond GO,
Project No. 28-31-C, ETM
7.200%, 1/01/09 35,155
------------
963,078
NEW JERSEY - 8.3%
3,895,000 Atlantic City, Municipal
Utilities Authority RB,
Sub-Water Systems (2) (3)
5.000%, 1/01/08 3,934,612
1,500,000 Bergen County, Utilities
Authority RB, Project
Notes
3.000%, 12/15/06 1,490,970
2,025,000 Bloomfield, Parking
Authority Notes (4)
4.500%, 5/18/06 2,024,453
3,500,000 Cliffside Park GO, BAN (4)
5.190%, 2/14/07 3,495,135
20,000 Hudson County GO
5.125%, 8/01/08 20,328
125,000 State Health Care Facilities
Financing Authority RB,
Allegany Health, Our Lady
of Lourdes, ETM, MBIA
5.000%, 7/01/08 125,164
1,900,000 State Transportation
Authority RB, Series A, TAN
4.000%, 6/23/06 1,900,703
------------
12,991,365
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
61
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
NEW MEXICO - 0.6%
1,000,000 State, Mortgage Financial
Authority RB, Single-Family
Housing, Series A2, Class I,
AMT, GNMA, FNMA,
FHLMC
3.900%, 1/01/19 997,880
------------
NEW YORK - 3.0%
35,000 New York City, Housing
Development Corporation RB,
Multi-Family Housing,
Series E-1, AMT
2.750%, 11/01/07 34,498
2,165,000 New York State Housing Finance
Agency RB, Multi-Family
Housing, Series B, AMT,
SONYMA
4.750%, 8/15/37 2,145,666
445,000 Saratoga County, Industrial
Development Agency RB,
Saratoga Hospital Project,
Series A
5.000%, 12/01/07 450,327
720,000 State Dormitory Authority RB,
Mental Health Project,
Series B, Partially
Pre-Refunded @ 102 (8)
5.700%, 2/15/07 744,682
5,000 State Housing Finance Agency
RB, University Construction,
Series A, ETM
7.900%, 11/01/06 5,048
625,000 State Urban Development RB,
Capital Appreciation,
Series O, FSA (6)
11.435%, 1/01/11 471,425
780,000 Tobacco Settlement Financing
RB, Series C-1
5.250%, 6/01/12 791,700
------------
4,643,346
NORTH CAROLINA - 0.3%
100,000 Pasquotank County, Public
Schools Project COP, MBIA
5.000%, 6/01/15 102,093
125,000 State Medical Care Community
RB, Saint Joseph Hospital
Project, AMBAC, ETM
5.000%, 10/01/08 125,678
80,000 State Medical Care Community
Hospital RB, Memorial
Mission Hospital Project,
ETM
7.625%, 10/01/08 83,865
Principal
Amount $ Value $
--------- -------
150,000 State Medical Care Community
RB, North Carolina Housing
Foundation Project, ACA
6.000%, 8/15/10 155,008
------------
466,644
NORTH DAKOTA - 0.2%
290,000 State Housing Finance Agency
RB, Home Mortgage Program,
Series A, AMT
5.200%, 7/01/19 294,684
------------
OHIO - 0.2%
100,000 Cuyahoga County, Deaconess
Hospital Project RB, ETM
6.750%, 11/01/09 104,636
230,000 Franklin County, First
Mortgage RB, OCLC
Project, ETM
7.500%, 6/01/09 238,892
------------
343,528
OKLAHOMA - 0.1%
135,000 Tulsa County, Home Financial
Authority RB, Single-Family
Mortgage, Mortgage-Backed
Securities Program, Class B,
AMT, GNMA
7.100%, 8/01/30 136,778
------------
OREGON - 1.5%
250,000 Cow Creek Band RB, Umpqua
Tribe of Indians, Series B,
AMBAC
5.100%, 7/01/12 250,475
570,000 State Housing & Community
Services Department RB,
Single-Family Mortgage
Program, Series F, AMT,
MBIA
5.650%, 7/01/28 583,475
1,470,000 State Housing & Community
Services Department RB,
Single-Family Mortgage
Program, Series J,
AMT, FNMA
5.750%, 7/01/29 1,498,430
------------
2,332,380
PENNSYLVANIA - 6.8%
10,000 Berks County GO, Second
Series, MBIA
3.100%, 11/15/08 9,816
1,000,000 Chester County, Health &
Education Facilities
Authority RB, Chester
County Hospital, MBIA
5.625%, 7/01/08 1,012,780
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
62
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
PENNSYLVANIA - (CONTINUED)
660,000 Dauphin County, General
Authority RB, School District
Program 0-1, FSA, Mandatory
Put (7)
3.500%, 12/01/06 658,139
10,000 Delaware County, Industrial
Development Authority RB,
Martins Run Project
6.000%, 12/15/06 9,999
50,000 Eastern Snyder County, Regional
Authority Sewer RB, MBIA
2.000%, 11/01/06 49,491
205,000 Lakeland, School District GO,
ETM
8.875%, 8/15/10 227,525
220,000 Leesport, Borough Authority
Sewer RB,
Pre-Refunded @ 100 (8)
5.250%, 11/15/06 220,812
2,000,000 Montgomery County, Industrial
Development Authority RB,
Adult Communities Total
Services, Series B
5.750%, 11/15/17 2,059,680
2,000,000 Philadelphia, Authority for
Industrial Development RB,
PGH Development Corporation
5.500%, 7/01/10 2,029,140
110,000 Philadelphia, Hospitals
Authority RB, Thomas
Jefferson University
Hospital, ETM
7.000%, 7/01/08 113,639
5,000 Pittsburgh GO, Series C, ETM
7.000%, 3/01/07 5,133
2,600,000 Pittsburgh, Urban Redevelopment
Authority RB, Multi-Family
Housing, Louis Mason Junior
Project, Mandatory Put (7)
5.000%, 12/01/07 2,621,034
1,605,000 State Higher Educational
Facilities Authority RB,
Saint Francis Independent
Colleges-Universities
5.000%, 11/01/11 1,617,679
------------
10,634,867
RHODE ISLAND - 0.1%
166,000 Warwick GO, Series A, MBIA
6.600%, 11/15/06 166,397
------------
Principal
Amount $ Value $
--------- -------
SOUTH CAROLINA - 0.6%
1,000,000 State Housing Finance &
Development Authority RB,
Multi-Family Housing,
Spartanburg Project,
Series A, FHLMC (1)
3.830%, 8/01/31 1,000,000
------------
SOUTH DAKOTA - 0.7%
820,000 State Health & Educational
Facilities RB, Rapid City
Regional Hospital, MBIA
5.000%, 9/01/06 823,509
235,000 State Lease Revenue Trust
COP, Series B, FSA
6.500%, 9/01/08 242,036
------------
1,065,545
TENNESSEE - 0.2%
310,000 State Housing Development
Agency RB, Homeownership
Program, Series 1D
4.700%, 7/01/15 310,313
------------
TEXAS - 3.8%
115,000 Dallas County GO, Series B
5.300%, 8/15/07 116,229
470,000 Galveston County, Single-Family
Housing Mortgage RB,
Mortgage-Backed Securities
Project, Series A, AMT, GNMA,
FNMA
6.200%, 12/01/32 478,709
55,000 Gulf Coast Waste Disposal
Authority RB, Waste
Management of Texas,
Series C, AMT
3.200%, 5/01/28 55,029
2,885,000 Retama, Development Special
Facilities RB, Retama
Racetrack, ETM (4)
8.750%, 12/15/10 3,317,115
1,640,000 State Department of Housing &
Community Affairs RB, High
Point III Project, Series A,
FNMA (1)
3.830%, 2/01/23 1,640,000
260,000 Valley Community Hospital RB,
ETM
7.500%, 4/01/09 276,136
------------
5,883,218
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
63
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - (CONTINUED)
VIRGINIA - 1.2%
365,000 Louisa, Industrial Development
Authority RB, Pollution
Control
5.250%, 12/01/08 371,026
110,000 Petersburg GO, FGIC
4.950%, 3/01/07 110,442
1,500,000 Poplar Hill, Community
Development Authority, COP,
Series A, USDA (4)
5.500%, 9/01/34 1,441,440
------------
1,922,908
WEST VIRGINIA - 0.0%
65,000 Cabell, Putnam, & Wayne
Counties, Single-Family
Residential Mortgage RB,
ETM, FGIC
7.375%, 4/01/10 68,923
------------
WISCONSIN - 3.2%
1,000,000 Fond Du Lac, Water Works RB,
BAN
4.000%, 3/01/10 997,950
350,000 Oconomowoc, Industrial
Development RB, Cl&D
Graphics Project, AMT,
(LOC: Marshall & Ilslay)
5.650%, 9/15/07 353,867
900,000 Oshkosh, Industrial
Development Authority
RB, Don Evans Project,
AMT, Mandatory Put, (LOC:
Marshall & Ilslay) (7)
5.500%, 12/01/11 916,893
1,500,000 State Health & Educational
Facilities RB, Aurora
Health Care, MBIA
5.000%, 8/15/09 1,549,710
1,125,000 State Housing & Economic
Development Authority RB,
AMT, Series E
5.800%, 9/01/17 1,151,179
------------
4,969,599
------------
TOTAL MUNICIPAL
BONDS
(Cost $138,510,022) 137,747,140
------------
Principal
Amount $ Value $
--------- -------
CORPORATE
OBLIGATIONS - 3.5%
1,880,225 IIS/Syska Holdings Energy (10)
3.900%, 8/15/08 1,696,151
250,000 Kidspeace National Centers of
Georgia, USDA (1) (2) (3)
4.500%, 12/01/28 247,925
3,556,944 USDA Airtanker (10)
8.000%, 2/01/08 3,516,751
------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $5,682,582) 5,460,827
------------
SHORT-TERM
INVESTMENTS - 8.2%
Shares
------
7,602,000 BlackRock Institutional Muni
Fund Portfolio, 3.44% (11) 7,602,000
5,208,232 SEI Tax Exempt Trust
Institutional Tax Free
Fund, Class A, 3.38% (11) 5,208,232
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $12,810,232) 12,810,232
------------
TOTAL
INVESTMENTS - 99.8%
(Cost $157,002,836) 156,018,199
------------
OTHER ASSETS LESS
LIABILITIES - 0.2% 343,200
------------
NET ASSETS - 100.0% $156,361,399
============
(1) Variable Rate Security -- Rate disclosed is as of April 30, 2006.
(2) Private Placement Security. Security considered restricted (see Note 2 in
Notes to Financial Statements).
(3) Security considered illiquid. On April 30, 2006, the value of these
securities amounted to $7,286,624 representing 4.7% of the net assets of
the Fund.
(4) Security is taxable.
(5) Security purchased on a when-issued basis.
(6) Zero Coupon Security -- Rate disclosed is the effective yield at time of
purchase.
(7) Mandatory Put Security -- The mandatory put date is shown as the maturity
date on the Schedule of Investments.
(8) Pre-Refunded Security -- The maturity date shown is the pre-refunded date.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
64
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
(9) Step Bond -- Coupon rate increases in increments to maturity. Rate
disclosed is as of April 30, 2006.
(10) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally to qualified institutions. On April 30, 2006, the
value of these securities amounted to $5,212,902, representing 3.3% of the
net assets of the Fund.
(11) Rate shown is the 7-day effective yield as of April 30, 2006.
AMT -- Income from security may be subject to alternative minimum tax.
BAN -- Bond Anticipation Note
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GA -- Guaranteed Agreement
GNMA -- Government National Mortgage Association
GO -- General Obligation
LLP -- Limited Liability Partnership
LOC -- Letter of Credit
NA -- National Association
RB -- Revenue Bond
SA -- Special Assessment
SONYMA -- State of New York Mortgage Agency
TA -- Tax Allocation
TAN -- Tax Anticipation Note
Guaranteed as to principal and interest by the organization identified below:
ACA -- American Capital Access
AMBAC -- -American Municipal Bond Assurance Corporation
BIG -- BIG Guaranty
FGIC -- Federal Guaranty Insurance Company
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
RADIAN -- RADIAN Guaranty
USDA -- USDA Guaranty
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
65
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2006 (UNAUDITED)
U.S. SMALL EMERGING
NORTH AMERICAN U.S. AND MID CAP INTERNATIONAL MARKET
EQUITY OPPORTUNITIES OPPORTUNITIES ALPHA EQUITY
FUND FUND FUND FUND FUND
-------------- -------------- ------------- ------------- --------
ASSETS
Investments in securities, at value - Note 2....... $1,543,700,558 $187,830,019 $7,314,608 $ 22,164,286 $10,549,177
Cash............................................... 140,827 -- 1,884 -- 1,042
Foreign Currency................................... 85,592 -- -- -- 5,305
Receivable for Fund shares sold.................... -- 1,249,328 -- -- --
Initial margin for futures contracts .............. 461,924 -- -- -- --
Variation margin receivable ....................... -- -- -- -- --
Dividends and tax reclaims receivable ............. 1,814,084 44,145 88 53,899 21,450
Interest receivable ............................... 97,121 53,283 1,457 872 743
Receivable for securities sold .................... 5,000,593 1,290,979 6,104 276,794 161,145
Unrealized appreciation on foreign currency
contracts ....................................... 139,914 -- -- 1,796 64
Prepaid expenses................................... 120,752 55,127 -- 32,510 --
Due from Investment Advisor - Note 3 .............. -- -- 7,408 -- 7,453
-------------- ------------ ---------- ------------ -----------
TOTAL ASSETS ................................ 1,551,561,365 190,522,881 7,331,549 22,530,157 10,746,379
LIABILITIES
Foreign Currency Payable .......................... -- 5,081 -- -- --
Income distributions payable ...................... -- -- -- -- --
Payable for securities purchased .................. 6,545,034 2,222,039 39,674 318,380 108,677
Payable for Fund shares redeemed .................. -- 162,713 -- -- --
Investment Advisory fees payable - Note 3 ......... 315,025 68,866 -- 1,180 --
Administrative fees payable - Note 3 .............. -- 37,904 -- -- --
Sub-administration fees payable - Note 3 .......... 12,877 17,364 467 1,827 977
Distribution fees payable - Note 3................. 29 -- 103 -- 213
Trustees' fees payable - Note 5 ................... 22,016 717 366 691 402
Accrued expenses and other liabilities ............ 173,979 56,975 12,281 45,295 21,003
-------------- ------------ ---------- ------------ -----------
TOTAL LIABILITIES ........................... 7,068,960 2,571,659 52,891 367,373 131,272
-------------- ------------ ---------- ------------ -----------
NET ASSETS ..................................... $1,544,492,405 $187,951,222 $7,278,658 $ 22,162,784 $10,615,107
============== ============ ========== ============ ===========
NET ASSETS
Capital paid-in ................................... $1,356,834,683 $145,322,037 $7,136,815 $ 32,277,176 $10,000,000
Undistributed (accumulated net investment
loss/distributions in excess of) net
investment income ............................... 7,523,267 (35,795) (4,151) 22,044 12,977
Accumulated net realized gain (loss) on investments 43,520,865 12,463,725 1,567 (11,793,450) 9,674
Net unrealized appreciation (depreciation)
on investments .................................. 136,286,706 30,201,255 144,427 1,653,264 592,359
Net unrealized appreciation on futures ............ 166,061 -- -- -- --
Net unrealized appreciation on foreign currency
translations .................................... 160,823 -- -- 3,750 97
-------------- ------------ ---------- ------------ -----------
NET ASSETS ..................................... $1,544,492,405 $187,951,222 $7,278,658 $ 22,162,784 $10,615,107
============== ============ ========== ============ ===========
Investor Shares:
Net assets ........................................ $1,544,391,027 $187,951,222 $6,771,754 $ 22,162,784 $ 9,553,792
Total shares outstanding at end of period ......... 128,679,380 8,282,493 668,006 2,166,847 900,000
Net asset value, offering and redemption price per
share (net assets / shares outstanding) ......... $ 12.00 $ 22.69 $ 10.14 $ 10.23 $ 10.62
Advisor Shares:
Net assets ....................................... $ 101,378 $ -- $ 506,904 $ -- $ 1,061,315
Total shares outstanding at end of period ......... 8,446 -- 50,000 -- 100,000
Net asset value, offering and redemption price per
share (net assets / shares outstanding) ......... $ 12.00 $ -- $ 10.14 $ -- $ 10.61
Cost of securities.................................... $1,407,413,852 $157,628,764 $7,170,181 $ 20,511,022 $ 9,956,818
Cost of foreign currency.............................. $ 84,324 $ -- $ -- $ -- $ 5,247
SHORT-TERM
ENHANCED TOTAL RETURN MUNICIPAL MUNICIPAL
INCOME FIXED INCOME BOND BOND
FUND FUND FUND FUND
------------ ------------ ------------ ------------
ASSETS
Investments in securities, at value - Note 2....... $108,923,484 $22,632,412 $165,155,817 $156,018,199
Cash............................................... -- 1,893 -- --
Foreign Currency................................... -- -- -- --
Receivable for Fund shares sold.................... -- -- 1,685,885 992,003
Initial margin for futures contracts .............. -- -- -- --
Variation margin receivable ....................... 6,469 -- -- --
Dividends and tax reclaims receivable ............. -- -- -- --
Interest receivable ............................... 314,549 136,690 1,668,224 1,835,129
Receivable for securities sold .................... 220,102 146,436 392,667 203,667
Unrealized appreciation on foreign currency
contracts ....................................... -- -- -- --
Prepaid expenses................................... 34,959 27,317 34,760 40,094
Due from Investment Advisor - Note 3 .............. -- 14,785 -- --
------------ ----------- ------------ ------------
TOTAL ASSETS ................................ 109,499,563 22,959,533 168,937,353 159,089,092
LIABILITIES
Foreign Currency Payable .......................... -- -- -- --
Income distributions payable ...................... 36 -- 14,279 50,485
Payable for securities purchased .................. 3,226,213 1,376,638 6,059,746 2,352,838
Payable for Fund shares redeemed .................. -- -- 115,894 213,582
Investment Advisory fees payable - Note 3 ......... 807 -- 31,307 30,695
Administrative fees payable - Note 3 .............. -- -- -- --
Sub-administration fees payable - Note 3 .......... 9,952 1,895 14,740 14,480
Distribution fees payable - Note 3................. 212 207 2,775 753
Trustees' fees payable - Note 5 ................... 777 586 604 636
Accrued expenses and other liabilities ............ 48,588 41,814 63,608 64,224
------------ ----------- ------------ ------------
TOTAL LIABILITIES ........................... 3,286,585 1,421,140 6,302,953 2,727,693
------------ ----------- ------------ ------------
NET ASSETS ..................................... $106,212,978 $21,538,393 $162,634,400 $156,361,399
============ =========== ============ ============
NET ASSETS
Capital paid-in ................................... $106,837,439 $22,070,793 $164,307,036 $157,722,770
Undistributed (accumulated net investment
loss/distributions in excess of) net
investment income ............................... (23,475) (31,547) 62,937 38,059
Accumulated net realized gain (loss) on investments (173,562) (93,139) (206,882) (414,793)
Net unrealized appreciation (depreciation)
on investments .................................. (427,424) (407,714) (1,528,691) (984,637)
Net unrealized appreciation on futures ............ -- -- -- --
Net unrealized appreciation on foreign currency
translations .................................... -- -- -- --
------------ ----------- ------------ ------------
NET ASSETS ..................................... $106,212,978 $21,538,393 $162,634,400 $156,361,399
============ =========== ============ ============
Investor Shares:
Net assets ........................................ $105,167,655 $20,519,624 $149,371,300 $152,503,135
Total shares outstanding at end of period ......... 10,585,029 2,124,973 15,018,864 15,419,883
Net asset value, offering and redemption price per
share (net assets / shares outstanding) ......... $ 9.94 $ 9.66 $ 9.95 $ 9.89
Advisor Shares:
Net assets ....................................... $ 1,045,323 $ 1,018,769 $ 13,263,100 $ 3,858,264
Total shares outstanding at end of period ......... 105,180 105,371 1,333,749 390,223
Net asset value, offering and redemption price per
share (net assets / shares outstanding) ......... $ 9.94 $ 9.67 $ 9.94 $ 9.89
Cost of securities.................................... $109,350,908 $23,040,126 $166,684,508 $157,002,836
Cost of foreign currency.............................. $ -- $ -- $ -- $ --
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
66 & 67
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 2006 (UNAUDITED)
NORTH U.S. SMALL EMERGING
AMERICAN U.S. AND MID CAP INTERNATIONAL MARKET
EQUITY OPPORTUNITIES OPPORTUNITIES ALPHA EQUITY
FUND FUND FUND* FUND FUND*
------------ ------------- ------------- ------------- --------
INVESTMENT INCOME
Dividend income .................................. $ 14,630,258 $ 737,851 $ 1,654 $ 96,754 $ 29,798
Interest income .................................. 54,371 50,815 -- 55 --
Foreign taxes withheld ........................... (117,853) (1,466) (6) (1,059) (1,679)
------------ ----------- -------- ---------- --------
TOTAL INCOME ................................. 14,566,776 787,200 1,648 95,750 28,119
EXPENSES
Investment Advisory fees - Note 3 ................ 1,761,475 373,012 4,076 30,285 8,530
Sub-administration fees - Note 3 ................. 74,907 92,913 467 5,215 977
Administrative fees - Note 3 ..................... -- 202,139 -- 6,629 --
Distribution fees - Note 3 ....................... 29 -- 103 -- 213
Legal fees ....................................... 112,103 26,916 1,376 16,829 1,421
Custodian fees ................................... 76,115 15,033 245 8,048 1,472
Insurance ........................................ 71,768 17,694 -- 10,978 2
Trustees' fees - Note 5 .......................... 46,374 11,558 366 4,751 402
Transfer agent fees .............................. 43,681 33,362 476 27,422 4,007
Printing expenses ................................ 40,939 15,153 2,037 6,385 2,105
Registration fees ................................ 30,748 22,901 262 7,054 --
Audit fees ....................................... 25,848 13,192 3,813 13,051 4,083
Amortization of deferred offering costs - Note 2.. -- -- 3,596 -- 3,596
Other ............................................ 21,699 5,199 476 5,803 4,317
------------ ----------- -------- ---------- --------
TOTAL EXPENSES ............................... 2,305,686 829,072 17,293 142,450 31,125
Expenses waived by Investment Advisor - Note 3 ... -- -- (4,076) (30,285) (8,530)
Reimbursement from Investment Advisor ............ -- -- (7,408) (55,396) (7,453)
------------ ----------- -------- ---------- --------
NET EXPENSES ................................. 2,305,686 829,072 5,809 56,769 15,142
------------ ----------- -------- ---------- --------
NET INVESTMENT INCOME (LOSS) ................. 12,261,090 (41,872) (4,161) 38,981 12,977
------------ ----------- -------- ---------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on investments sold ..... 43,132,032+ 12,662,193 1,543 741,791 9,823
Net realized gain (loss) on futures .............. 2,719,598 -- -- -- --
Net realized gain (loss) on foreign currency
transactions ................................... 122,794 2,309 34 (21,663) (149)
------------ ----------- -------- ---------- --------
Net realized gain (loss) on investments,
futures and foreign currency
transactions ............................. 45,974,424 12,664,502 1,577 720,128 9,674
------------ ----------- -------- ---------- --------
Change in unrealized appreciation (depreciation)
on investments ................................. 78,331,816 16,146,783 144,427 1,101,135 592,359
Change in unrealized appreciation (depreciation)
on futures (283,095) -- -- -- --
Change in unrealized appreciation on foreign
currency translations .......................... 162,318 -- -- 3,075 97
------------ ----------- -------- ---------- --------
Net change in unrealized appreciation
(depreciation) on investments, futures and
foreign currency translations .................. 78,211,039 16,146,783 144,427 1,104,210 592,456
------------ ----------- -------- ---------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) .............................. 124,185,463 28,811,285 146,004 1,824,338 602,130
------------ ----------- -------- ---------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $136,446,553 $28,769,413 $141,843 $1,863,319 $615,107
============ =========== ======== ========== ========
SHORT-TERM
ENHANCED TOTAL RETURN MUNICIPAL MUNICIPAL
INCOME FIXED INCOME BOND BOND
FUND FUND FUND FUND
---------- ------------ ---------- ----------
INVESTMENT INCOME
Dividend income .................................. $ -- $ -- $ 130,808 $ 142,096
Interest income .................................. 2,508,089 458,042 2,764,541 2,679,480
Foreign taxes withheld ........................... -- -- -- --
---------- --------- ---------- ----------
TOTAL INCOME ................................. 2,508,089 458,042 2,895,349 2,821,576
EXPENSES
Investment Advisory fees - Note 3 ................ 128,431 22,048 260,175 287,320
Sub-administration fees - Note 3 ................. 59,036 10,134 74,739 82,544
Administrative fees - Note 3 ..................... -- -- -- --
Distribution fees - Note 3 ....................... 1,283 1,276 13,708 4,247
Legal fees ....................................... 29,458 20,451 24,233 26,235
Custodian fees ................................... 9,095 3,397 6,732 8,559
Insurance ........................................ 14,097 11,390 20,401 16,699
Trustees' fees - Note 5 .......................... 9,442 5,043 9,941 11,072
Transfer agent fees .............................. 47,994 47,031 47,890 48,673
Printing expenses ................................ 11,330 8,967 15,339 16,374
Registration fees ................................ 17,861 14,594 21,399 24,593
Audit fees ....................................... 13,140 12,090 12,961 13,145
Amortization of deferred offering costs - Note 2.. 13,078 8,913 -- --
Other ............................................ 11,925 6,367 17,184 13,794
---------- --------- ---------- ----------
TOTAL EXPENSES ............................... 366,170 171,701 524,702 553,255
Expenses waived by Investment Advisor - Note 3 ... (128,431) (22,048) (153,256) (153,948)
Reimbursement from Investment Advisor ............ (30,966) (113,100) -- --
---------- --------- ---------- ----------
NET EXPENSES ................................. 206,773 36,553 371,446 399,307
---------- --------- ---------- ----------
NET INVESTMENT INCOME (LOSS) ................. 2,301,316 421,489 2,523,903 2,422,269
---------- --------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on investments sold ..... (100,886) (80,587) 233,678 (82,717)
Net realized gain (loss) on futures .............. (37,388) -- -- --
Net realized gain (loss) on foreign currency
transactions ................................... -- -- -- --
---------- --------- ---------- ----------
Net realized gain (loss) on investments,
futures and foreign currency
transactions ............................. (138,274) (80,587) 233,678 (82,717)
---------- --------- ---------- ----------
Change in unrealized appreciation (depreciation)
on investments ................................. (16,327) (233,654) (826,811) (384,288)
Change in unrealized appreciation (depreciation)
on futures 41,654 -- -- --
Change in unrealized appreciation on foreign
currency translations .......................... -- -- -- --
---------- --------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments, futures and
foreign currency translations .................. 25,327 (233,654) (826,811) (384,288)
---------- --------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) .............................. (112,947) (314,241) (593,133) (467,005)
---------- --------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $2,188,369 $ 107,248 $1,930,770 $1,955,264
========== ========= ========== ==========
*Fund commenced investment activities on March 31, 2006.
+Includes realized gains from in-kind transactions (see Note 6 in Notes to
Financial Statements).
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
68 & 69
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2006 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
OCTOBER 31, 2005 (UNLESS OTHERWISE INDICATED)
NORTH AMERICAN EQUITY FUND
---------------------------------------------
SIX MONTHS SIX MONTHS YEAR
ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30,
2006 2005* 2005
-------------- -------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ........................... $ 12,261,090 $ 7,714,948 $ 15,683,295
Net realized gain on investments, futures and
foreign currency transactions ....................... 45,974,424+ 19,844,471+ 58,764,908+
Change in unrealized appreciation (depreciation)
on investments, futures and foreign currency
translations ........................................ 78,211,039 32,655,709 (13,914,149)
-------------- -------------- ------------
Net increase in net assets resulting from operations 136,446,553 60,215,128 60,534,054
-------------- -------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income-- Investor Shares............ (12,335,404) (4,770,036) (14,500,092)
From net realized gains-- Investor Shares .............. (20,970,187) (43,703,125) (37,178,610)
-------------- -------------- ------------
Total dividends and distributions.................... (33,305,591) (48,473,161) (51,678,702)
-------------- -------------- ------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ........................................ 83,869,363 399,079,659 71,120,075
Proceeds from shares sold in-kind ...................... 188,271,143 -- 29,510,449
Reinvestment of distributions .......................... 21,749,065 43,819,751 37,142,292
Redemption of shares ................................... (85,673,164) (24,585,167) (73,538,728)
Redemption of shares in-kind............................ (70,240,546) (9,926,227) (80,872,931)
Redemption fees-- Note 4................................ -- -- --
-------------- -------------- ------------
Total increase (decrease) from Investor Share
transactions 137,975,861 408,388,016 (16,638,843)
-------------- -------------- ------------
ADVISOR SHARES***:
Sales of shares ........................................ 100,000 -- --
-------------- -------------- ------------
Total increase from Advisor Share transactions ...... 100,000 -- --
-------------- -------------- ------------
Net increase (decrease) in net assets from share
transactions 138,075,861 408,388,016 (16,638,843)
-------------- -------------- ------------
Total increase (decrease) in net assets ............. 241,216,823 420,129,983 (7,783,491)
NET ASSETS
Beginning of Period .................................... 1,303,275,582 883,145,599 890,929,090
-------------- -------------- ------------
End of Period .......................................... $1,544,492,405 $1,303,275,582 $883,145,599
============== ============== ============
Undistributed net investment income (accumulated
net investment loss) ................................ $ 7,523,267 $ 7,556,968 $ 4,697,394
============== ============== ============
CHANGES IN FUND SHARES
Investor Shares:
Sales of shares ........................................ 7,207,820 35,726,286 6,378,333
Shares sold in-kind .................................... 16,145,433 -- 2,623,151
Reinvestment of distributions .......................... 1,907,813 3,951,285 3,334,137
Redemption of shares ................................... (7,361,184) (2,180,883) (6,682,945)
Redemption of shares in-kind ........................... (6,085,310) (900,738) (7,249,196)
-------------- -------------- ------------
Net increase (decrease) in Investor Shares .......... 11,814,572 36,595,950 (1,596,520)
============== ============== ============
ADVISOR SHARES***:
Sales of shares ........................................ 8,446 -- --
-------------- -------------- ------------
Net increase in Advisor Shares ...................... 8,446 -- --
============== ============== ============
U.S. OPPORTUNITIES U.S. SMALL AND MID CAP
FUND OPPORTUNITIES FUND
-------------------------------- ----------------------
SIX MONTHS YEAR MARCH 31,
ENDED ENDED 2006** TO
APRIL 30, OCTOBER 31, APRIL 30,
2006 2005 2006
------------ ------------ ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ........................... $ (41,872) $ (345,989) $ (4,161)
Net realized gain on investments, futures and
foreign currency transactions ....................... 12,664,502 6,009,043 1,577
Change in unrealized appreciation (depreciation)
on investments, futures and foreign currency
translations ........................................ 16,146,783 4,711,259 144,427
------------ ------------ ----------
Net increase in net assets resulting from operations 28,769,413 10,374,313 141,843
------------ ------------ ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income-- Investor Shares............ -- -- --
From net realized gains-- Investor Shares .............. (5,427,542) (9,179,135) --
------------ ------------ ----------
Total dividends and distributions.................... (5,427,542) (9,179,135) --
------------ ------------ ----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ........................................ 43,885,782 87,562,547 6,636,815
Proceeds from shares sold in-kind ...................... -- -- --
Reinvestment of distributions .......................... 5,298,332 8,951,319 --
Redemption of shares ................................... (25,043,875) (30,951,837) --
Redemption of shares in-kind............................ -- -- --
Redemption fees-- Note 4................................ 2,487 30,653 --
------------ ------------ ----------
Total increase (decrease) from Investor Share
transactions 24,142,726 65,592,682 6,636,815
------------ ------------ ----------
ADVISOR SHARES***:
Sales of shares ........................................ -- -- 500,000
------------ ------------ ----------
Total increase from Advisor Share transactions ...... -- -- 500,000
------------ ------------ ----------
Net increase (decrease) in net assets from share
transactions 24,142,726 65,592,682 7,136,815
------------ ------------ ----------
Total increase (decrease) in net assets ............. 47,484,597 66,787,860 7,278,658
NET ASSETS
Beginning of Period .................................... 140,466,625 73,678,765 --
------------ ------------ ----------
End of Period .......................................... $187,951,222 $140,466,625 $7,278,658
============ ============ ==========
Undistributed net investment income (accumulated
net investment loss) ................................ $ (35,795) $ -- $ (4,151)
============ ============ ==========
CHANGES IN FUND SHARES
Investor Shares:
Sales of shares ........................................ 2,051,730 4,530,486 668,006
Shares sold in-kind .................................... -- -- --
Reinvestment of distributions .......................... 263,993 477,404 --
Redemption of shares ................................... (1,178,620) (1,625,973) --
Redemption of shares in-kind ........................... -- -- --
------------ ------------ ----------
Net increase (decrease) in Investor Shares .......... 1,137,103 3,381,917 668,006
============ ============ ==========
ADVISOR SHARES***:
Sales of shares ........................................ -- -- 50,000
------------ ------------ ----------
Net increase in Advisor Shares ...................... -- -- 50,000
============ ============ ==========
INTERNATIONAL
ALPHA FUND
--------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
2006 2005
----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ........................... $ 38,981 $ 108,423
Net realized gain on investments, futures and
foreign currency transactions ....................... 720,128 1,070,711
Change in unrealized appreciation (depreciation)
on investments, futures and foreign currency
translations ........................................ 1,104,210 (151,981)
----------- ----------
Net increase in net assets resulting from operations 1,863,319 1,027,153
----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income-- Investor Shares............ (128,898) (71,012)
From net realized gains-- Investor Shares .............. -- --
----------- ----------
Total dividends and distributions.................... (128,898) (71,012)
----------- ----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ........................................ 14,174,359 513,556
Proceeds from shares sold in-kind ...................... -- --
Reinvestment of distributions .......................... 125,253 68,000
Redemption of shares ................................... (416,021) (225,858)
Redemption of shares in-kind............................ -- --
Redemption fees-- Note 4................................ -- --
----------- ----------
Total increase (decrease) from Investor Share
transactions 13,883,591 355,698
----------- ----------
ADVISOR SHARES***:
Sales of shares ........................................ -- --
----------- ----------
Total increase from Advisor Share transactions ...... -- --
----------- ----------
Net increase (decrease) in net assets from share
transactions 13,883,591 355,698
----------- ----------
Total increase (decrease) in net assets ............. 15,618,012 1,311,839
NET ASSETS
Beginning of Period .................................... 6,544,772 5,232,933
----------- ----------
End of Period .......................................... $22,162,784 $6,544,772
=========== ==========
Undistributed net investment income (accumulated
net investment loss) ................................ $ 22,044 $ 111,961
=========== ==========
CHANGES IN FUND SHARES
Investor Shares:
Sales of shares ........................................ 1,414,477 63,761
Shares sold in-kind .................................... -- --
Reinvestment of distributions .......................... 14,397 9,214
Redemption of shares ................................... (45,837) (28,287)
Redemption of shares in-kind ........................... -- --
----------- ----------
Net increase (decrease) in Investor Shares .......... 1,383,037 44,688
=========== ==========
ADVISOR SHARES***:
Sales of shares ........................................ -- --
----------- ----------
Net increase in Advisor Shares ...................... -- --
=========== ==========
<FN>
* Effective May 1, 2005, the Fund's fiscal year end changed from April 30 to
October 31.
** Fund commenced investment activities on March 31, 2006.
*** The North American Equity Fund's Advisor Shares commenced operations on
March 31, 2006.
+ Includes realized gains from in-kind transactions (see Note 6 in Notes to
Financial Statements).
</FN>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
70 & 71
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2006 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
OCTOBER 31, 2005 (UNLESS OTHERWISE INDICATED)
EMERGING MARKET ENHANCED TOTAL RETURN FIXED
EQUITY FUND INCOME FUND INCOME FUND
------------------ -------------------------- ------------------------
MARCH 31, SIX MONTHS DECEMBER 31, SIX MONTHS DECEMBER 31,
2006* TO ENDED 2004** TO ENDED 2004* TO
APRIL 30, APRIL, 30 OCTOBER 31, APRIL 30, OCTOBER 31,
2006 2006 2005 2006 2005
----------- ----------- ------------ ----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ............................ $ 12,977 $ 2,301,316 $ 2,255,776 $ 421,489 $ 302,426
Net realized gain (loss) on investments, futures
and foreign currency transactions.............. 9,674 (138,274) 120,013 (80,587) 22,421
Change in unrealized appreciation (depreciation)
on investments, futures and foreign currency
translations .................................. 592,456 25,327 (452,751) (233,654) (174,060)
----------- ------------ ------------ ----------- -----------
Net increase in net assets resulting from
operations .................................. 615,107 2,188,369 1,923,038 107,248 150,787
----------- ------------ ------------ ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Investor Shares .................................. -- (2,370,380) (2,319,021) (431,177) (275,587)
Advisor Shares.................................... -- (22,406) (24,061) (23,292) (28,484)
From net realized gains
Investor Shares .................................. -- -- -- (30,182) --
Advisor Shares.................................... -- -- -- (1,713) --
----------- ------------ ------------ ----------- -----------
Total dividends and distributions.............. -- (2,392,786) (2,343,082) (486,364) (304,071)
----------- ------------ ------------ ----------- -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................. 9,000,000 1,962,788 99,217,623 2,970,718 9,000,000
Proceeds from shares sold in-kind................. -- -- -- 8,819,298 --
Reinvestment of distributions .................... -- 2,370,342 2,319,020 461,359 275,587
Redemption of shares ............................. -- (69,456) (14,581) (509,764) --
----------- ------------ ------------ ----------- -----------
Total increase from Investor Share transactions 9,000,000 4,263,674 101,522,062 11,741,611 9,275,587
----------- ------------ ------------ ----------- -----------
ADVISOR SHARES:
Sales of shares .................................. 1,000,000 -- 1,019,500 21,000 1,000,000
Reinvestment of distributions .................... -- 22,406 24,062 25,005 28,484
Redemption of shares ............................. -- (4,100) (10,165) (20,894) --
----------- ------------ ------------ ----------- -----------
Total increase from Advisor Share transactions 1,000,000 18,306 1,033,397 25,111 1,028,484
----------- ------------ ------------ ----------- -----------
Net increase in net assets from share
transactions ................................ 10,000,000 4,281,980 102,555,459 11,766,722 10,304,071
----------- ------------ ------------ ----------- -----------
Total increase in net assets .................. 10,615,107 4,077,563 102,135,415 11,387,606 10,150,787
NET ASSETS
Beginning of Period .............................. -- 102,135,415 -- 10,150,787 --
----------- ------------ ------------ ----------- -----------
End of Period .................................... $10,615,107 $106,212,978 $102,135,415 $21,538,393 $10,150,787
=========== ============ ============ =========== ===========
Undistributed (distributions in excess of) net
investment income ............................. $ 12,977 $ (23,475) $ (10) $ (31,547) $ --
=========== ============ ============ =========== ===========
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................. 900,000 197,456 9,925,766 305,158 900,000
Shares sold in-kind............................... -- -- -- 897,182 --
Reinvestment of distributions .................... -- 238,241 232,006 47,031 27,508
Redemption of shares ............................. -- (6,982) (1,458) (51,906) --
----------- ------------ ------------ ----------- -----------
Net increase in Investor Shares ............... 900,000 428,715 10,156,314 1,197,465 927,508
=========== ============ ============ =========== ===========
ADVISOR SHARES:
Sales of shares .................................. 100,000 -- 101,952 2,115 100,000
Reinvestment of distributions .................... -- 2,252 2,407 2,545 2,843
Redemption of shares ............................. -- (412) (1,019) (2,132) --
----------- ------------ ------------ ----------- -----------
Net increase in Advisor Shares ................ 100,000 1,840 103,340 2,528 102,843
=========== ============ ============ =========== ===========
MUNICIPAL SHORT-TERM MUNICIPAL
BOND FUND BOND FUND
----------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ............................ $ 2,523,903 $ 2,833,431 $ 2,422,269 $ 3,141,473
Net realized gain (loss) on investments, futures
and foreign currency transactions.............. 233,678 (100,541) (82,717) (235,837)
Change in unrealized appreciation (depreciation)
on investments, futures and foreign currency
translations .................................. (826,811) (1,078,720) (384,288) (425,270)
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations .................................. 1,930,770 1,654,170 1,955,264 2,480,366
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Investor Shares .................................. (2,315,722) (2,667,734) (2,363,832) (3,049,821)
Advisor Shares.................................... (198,961) (141,656) (53,070) (62,431)
From net realized gains
Investor Shares .................................. -- -- -- --
Advisor Shares.................................... -- -- -- --
------------ ------------ ------------ ------------
Total dividends and distributions.............. (2,514,683) (2,809,390) (2,416,902) (3,112,252)
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................. 62,338,337 57,527,571 51,767,929 90,049,810
Proceeds from shares sold in-kind................. -- -- -- --
Reinvestment of distributions .................... 2,258,015 2,545,743 2,209,881 2,963,126
Redemption of shares ............................. (10,803,417) (8,652,325) (32,086,178) (35,360,575)
------------ ------------ ------------ ------------
Total increase from Investor Share
transactions ................................ 53,792,935 51,420,989 21,891,632 57,652,361
------------ ------------ ------------ ------------
ADVISOR SHARES:
Sales of shares .................................. 5,499,359 8,871,475 927,274 3,551,726
Reinvestment of distributions .................... 191,727 140,656 40,168 56,381
Redemption of shares ............................. (755,094) (2,457,631) (210,026) (1,806,060)
------------ ------------ ------------ ------------
Total increase from Advisor Share
transactions ................................ 4,935,992 6,554,500 757,416 1,802,047
------------ ------------ ------------ ------------
Net increase in net assets from share
transactions ................................ 58,728,927 57,975,489 22,649,048 59,454,408
------------ ------------ ------------ ------------
Total increase in net assets .................. 58,145,014 56,820,269 22,187,410 58,822,522
NET ASSETS
Beginning of Period .............................. 104,489,386 47,669,117 134,173,989 75,351,467
------------ ------------ ------------ ------------
End of Period .................................... $162,634,400 $104,489,386 $156,361,399 $134,173,989
============ ============ ============ ============
Undistributed (distributions in excess of) net
investment income ............................. $ 62,937 $ 53,717 $ 38,059 $ 32,692
============ ============ ============ ============
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................. 6,237,400 5,718,745 5,223,298 9,037,971
Shares sold in-kind............................... -- -- -- --
Reinvestment of distributions .................... 226,106 253,397 222,960 297,625
Redemption of shares ............................. (1,081,684) (861,090) (3,237,906) (3,549,879)
------------ ------------ ------------ ------------
Net increase in Investor Shares ............... 5,381,822 5,111,052 2,208,352 5,785,717
============ ============ ============ ============
ADVISOR SHARES:
Sales of shares .................................. 550,258 882,658 93,517 357,036
Reinvestment of distributions .................... 19,201 14,007 4,053 5,664
Redemption of shares ............................. (75,679) (243,487) (21,196) (181,331)
------------ ------------ ------------ ------------
Net increase in Advisor Shares ................ 493,780 653,178 76,374 181,369
============ ============ ============ ============
<FN>
* Fund commenced investment activities on March 31, 2006.
** Fund commenced investment activities on December 31, 2004.
</FN>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
72 & 73
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2006 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET REALIZED AND DISTRIBUTIONS
UNREALIZED GAINS FROM NET
(LOSSES) ON REALIZED GAIN
NET ASSET INVESTMENTS DIVIDENDS ON INVESTMENTS
VALUE, NET AND FOREIGN TOTAL FROM FROM NET AND FOREIGN
BEGINNING INVESTMENT CURRENCY INVESTMENT INVESTMENT CURRENCY TOTAL
OF PERIOD INCOME (LOSS) TRANSACTIONS OPERATIONS INCOME TRANSACTIONS DISTRIBUTIONS
---------- ------------ -------------- ---------- ----------- ------------- -------------
NORTH AMERICAN EQUITY FUND
Investor Shares
2006*............... $11.15 $ 0.09 $ 1.04 $ 1.13 $(0.10) $(0.18) $(0.28)
2005(b)............. 11.00 0.06 0.63 0.69 (0.05) (0.49) (0.54)
2005(c)............. 10.88 0.22 0.62 0.84 (0.20) (0.52) (0.72)
2004(c)(d).......... 10.00 0.09 0.86 0.95 (0.04) (0.03) (0.07)
Advisor Shares
2006(e)............. $11.84 $ 0.06 $ 0.10 $ 0.16 $ -- $ -- $ --
U.S. OPPORTUNITIES FUND
Investor Shares
2006*............... $19.66 $(0.01) $ 3.79** $ 3.78 $ -- $(0.75) $(0.75)
2005................ 19.58 --(f) 2.11** 2.11 -- (2.03) (2.03)
2004................ 16.18 --(f) 3.40** 3.40 -- -- --
2003................ 12.57 (0.16) 4.11 3.95 -- (0.34) (0.34)
2002................ 15.17 (0.10) (1.15) (1.25) -- (1.35) (1.35)
2001................ 18.01 (0.13) 0.59 0.46 -- (3.30) (3.30)
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2006(e)............. $10.00 $(0.01) $ 0.15 $ 0.14 $ -- $ -- $ --
Advisor Shares
2006(e)............. $10.00 $(0.01) $ 0.15 $ 0.14 $ -- $ -- $ --
INTERNATIONAL ALPHA FUND
Investor Shares
2006*............... $ 8.35 $ 0.04 $ 2.01 $ 2.05 $(0.17) $ -- $(0.17)
2005................ 7.08 0.14 1.22 1.36 (0.09) -- (0.09)
2004................ 6.37 0.09 0.75 0.84 (0.13) -- (0.13)
2003................ 5.37 0.10 1.08 1.18 (0.12) (0.06) (0.18)
2002................ 7.26 0.04 (1.13) (1.09) -- (0.80) (0.80)
2001................ 16.74 0.09 (2.38) (2.29) (0.31) (6.88) (7.19)
EMERGING MARKET EQUITY FUND
Investor Shares
2006(e)............. $10.00 $ 0.01 $ 0.61 $ 0.62 $ -- $ -- $ --
Advisor Shares
2006(e)............. $10.00 $ 0.01 $ 0.60 $ 0.61 $ -- $ -- $ --
ENHANCED INCOME FUND
Investor Shares
2006*............... $ 9.96 $ 0.22 $(0.01) $ 0.21 $(0.23) $ -- $(0.23)
2005(g)............. 10.00 0.26 (0.04) 0.22 (0.26) -- (0.26)
Advisor Shares
2006*............... $ 9.96 $ 0.21 $(0.01) $ 0.20 $(0.22) $ -- $(0.22)
2005(g)............. 10.00 0.23 (0.04) 0.19 (0.23) -- (0.23)
RATIO OF RATIO OF
EXPENSES TO EXPENSES TO
AVERAGE NET ASSETS AVERAGE NET ASSETS
NET ASSET NET ASSETS, (INCLUDING (EXCLUDING
VALUE, END TOTAL END OF WAIVERS AND WAIVERS AND
OF PERIOD RETURN(A) PERIOD (000) REIMBURSEMENTS) REIMBURSEMENTS)
--------- --------- ------------ --------------- -----------------
NORTH AMERICAN EQUITY FUND
Investor Shares
2006*............... $12.00 10.25% $1,544,391 0.33% 0.33%
2005(b)............. 11.15 6.35 1,303,276 0.35 0.35
2005(c)............. 11.00 7.59 883,146 0.33 0.33
2004(c)(d).......... 10.88 9.56 890,929 0.37 0.37
Advisor Shares
2006(e)............. $12.00 1.35% $ 101 0.67% 0.67%
U.S. OPPORTUNITIES FUND
Investor Shares
2006*............... $22.69 19.72% $ 187,951 1.03% 1.03%
2005................ 19.66 11.26 140,467 1.13 1.13
2004................ 19.58 21.01 73,679 1.62 1.62
2003................ 16.18 32.13 46,783 1.93 2.25
2002................ 12.57 (9.91) 41,857 1.49 1.50
2001................ 15.17 3.25 28,096 1.49 1.83
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2006(e)............. $10.14 1.40% $ 6,772 1.40% 3.84%
Advisor Shares
2006(e)............. $10.14 1.40% $ 507 1.61% 7.79%
INTERNATIONAL ALPHA FUND
Investor Shares
2006*............... $10.23 24.85% $ 22,163 1.25% 3.14%
2005................ 8.35 19.45 6,545 1.25 3.88
2004................ 7.08 13.31 5,233 1.25 3.36
2003................ 6.37 22.66 6,242 1.25 3.27
2002................ 5.37 (17.20) 6,427 1.14 1.94
2001................ 7.26 (24.96) 20,850 0.99 1.41
EMERGING MARKET EQUITY FUND
Investor Shares
2006(e)............. $10.62 6.20% $ 9,554 1.75% 3.62%
Advisor Shares
2006(e)............. $10.61 6.10% $ 1,061 2.00% 3.87%
ENHANCED INCOME FUND
Investor Shares
2006*............... $ 9.94 2.13% $ 105,168 0.40% 0.71%
2005(g)............. 9.96 2.17 101,106 0.40 0.82
Advisor Shares
2006*............... $ 9.94 1.98% $ 1,045 0.65% 0.96%
2005(g)............. 9.96 1.96 1,029 0.65 1.07
RATIO OF
NET INVESTMENT
INCOME (LOSS) TO
AVERAGE NET ASSETS
(INCLUDING PORTFOLIO
WAIVERS AND TURNOVER
REIMBURSEMENTS) RATE
------------------- ----------
NORTH AMERICAN EQUITY FUND
Investor Shares
2006*............... 1.74% 33%
2005(b)............. 1.39 30
2005(c)............. 1.79 89
2004(c)(d).......... 1.29 54
Advisor Shares
2006(e)............. 0.85% 33%
U.S. OPPORTUNITIES FUND
Investor Shares
2006*............... (0.05)% 49%
2005................ (0.29) 107
2004................ (0.83) 144
2003................ (1.22) 162
2002................ (0.75) 81
2001................ (0.79) 105
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2006(e)............. (1.00)% 1%
Advisor Shares
2006(e)............. (1.17)% 1%
INTERNATIONAL ALPHA FUND
Investor Shares
2006*............... 0.85% 42%
2005................ 1.85 126
2004................ 1.16 136
2003................ 2.09 50
2002................ 0.60 111
2001................ 0.57 146
EMERGING MARKET EQUITY FUND
Investor Shares
2006(e)............. 1.55% 6%
Advisor Shares
2006(e)............. 1.30% 6%
ENHANCED INCOME FUND
Investor Shares
2006*............... 4.48% 35%
2005(g)............. 3.08 61
Advisor Shares
2006*............... 4.23% 35%
2005(g)............. 2.69 61
<FN>
* For the six months or period ended April 30, 2006 (unaudited). All ratios
for the period have been annualized, except for the Portfolio Turnover
Rate.
** Includes redemption fees. Amount less than $0.01 per share.
(a) Total returns would have been lower had certain Fund expenses not been
waived or reimbursed during the periods shown (See Note 3). Total return
calculations for a period of less than one year are not annualized.
(b) For the six months ended October 31, 2005. The North American Equity Fund's
fiscal year end changed from April 30 to October 31. All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.
(c) For the year or period ended April 30.
(d) Commenced operations on September 17, 2003. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.
(e) Commenced operations on March 31, 2006. All ratios for the period have been
annualized, except for the Portfolio Turnover Rate.
(f) Amount was less than $(0.01) per share.
(g) Commenced operations on December 31, 2004. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.
</FN>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
74 & 75
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2006 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET REALIZED AND DISTRIBUTIONS
UNREALIZED GAINS FROM NET
(LOSSES) ON REALIZED GAIN
NET ASSET INVESTMENTS DIVIDENDS ON INVESTMENTS
VALUE, NET AND FOREIGN TOTAL FROM FROM NET AND FOREIGN
BEGINNING INVESTMENT CURRENCY INVESTMENT INVESTMENT CURRENCY TOTAL
OF PERIOD INCOME TRANSACTIONS OPERATIONS INCOME TRANSACTIONS DISTRIBUTIONS
---------- ------------ -------------- ---------- ----------- ------------- -------------
TOTAL RETURN FIXED INCOME FUND
Investor Shares
2006*............... $ 9.85 $ 0.23 $(0.15) $ 0.08 $(0.25) $(0.02) $(0.27)
2005(b)............. 10.00 0.30 (0.15) 0.15 (0.30) -- (0.30)
Advisor Shares
2006*............... $ 9.85 $ 0.22 $(0.16) $ 0.06 $(0.22) $(0.02) $(0.24)
2005(b)............. 10.00 0.28 (0.15) 0.13 (0.28) -- (0.28)
MUNICIPAL BOND FUND
Investor Shares
2006*............... $ 9.97 $ 0.19 $(0.02) $ 0.17 $(0.19) $ -- $(0.19)
2005................ 10.12 0.36 (0.15) 0.21 (0.36) -- (0.36)
2004(c)............. 10.00 0.24 0.11 0.35 (0.23) -- (0.23)
Advisor Shares
2006*............... $ 9.97 $ 0.18 $(0.03) $ 0.15 $(0.18) $ -- $(0.18)
2005................ 10.11 0.34 (0.14) 0.20 (0.34) -- (0.34)
2004(c)............. 10.00 0.21 0.11 0.32 (0.21) -- (0.21)
SHORT-TERM MUNICIPAL BOND FUND
Investor Shares
2006*............... $ 9.92 $ 0.17 $(0.03) $ 0.14 $(0.17) $ -- $(0.17)
2005................ 9.97 0.29 (0.05) 0.24 (0.29) -- (0.29)
2004(c)............. 10.00 0.15 (0.03) 0.12 (0.15) -- (0.15)
Advisor Shares
2006*............... $ 9.92 $ 0.15 $(0.03) $ 0.12 $(0.15) $ -- $(0.15)
2005................ 9.97 0.27 (0.05) 0.22 (0.27) -- (0.27)
2004(c)............. 10.00 0.13 (0.03) 0.10 (0.13) -- (0.13)
RATIO OF RATIO OF
EXPENSES TO EXPENSES TO
AVERAGE NET ASSETS AVERAGE NET ASSETS
(INCLUDING (EXCLUDING
NET ASSET NET ASSETS, WAIVERS, WAIVERS,
VALUE, END TOTAL END OF REIMBURSEMENTS REIMBURSEMENTS
OF PERIOD RETURN(A) PERIOD (000) AND OFFSETS) AND OFFSETS)
--------- --------- ------------ --------------- -----------------
TOTAL RETURN FIXED INCOME FUND
Investor Shares
2006*............... $ 9.66 0.79% $ 20,519 0.40% 1.92%
2005(b)............. 9.85 1.51 9,138 0.40 3.05
Advisor Shares
2006*............... $ 9.67 0.59% $ 1,019 0.65% 2.35%
2005(b)............. 9.85 1.30 1,013 0.65 3.30
MUNICIPAL BOND FUND
Investor Shares
2006*............... $ 9.95 1.75% $ 149,371 0.55% 0.79%
2005................ 9.97 2.14 96,114 0.55 0.93
2004(c)............. 10.12 3.53 45,781 0.55 1.41
Advisor Shares
2006*............... $ 9.94 1.52% $ 13,263 0.80% 1.04%
2005................ 9.97 1.99 8,375 0.80 1.18
2004(c)............. 10.11 3.21 1,888 0.80 1.64
SHORT-TERM MUNICIPAL BOND FUND
Investor Shares
2006*............... $ 9.89 1.38% $ 152,503 0.55% 0.76%
2005................ 9.92 2.47 131,062 0.55 0.85
2004(c)............. 9.97 1.26 74,031 0.55 1.30
Advisor Shares
2006*............... $ 9.89 1.25% $ 3,858 0.80% 1.01%
2005................ 9.92 2.21 3,112 0.80 1.10
2004(c)............. 9.97 1.05 1,320 0.80 1.44
NET INVESTMENT
INCOME TO
AVERAGE NET ASSETS
(INCLUDING
WAIVERS, PORTFOLIO
REIMBURSEMENTS TURNOVER
AND OFFSETS) RATE
------------------- ----------
TOTAL RETURN FIXED INCOME FUN
Investor Shares
2006*............... 4.80% 97%
2005(b)............. 3.61 571
Advisor Shares
2006*............... 4.52% 97%
2005(b)............. 3.35 571
MUNICIPAL BOND FUND
Investor Shares
2006*............... 3.90% 11%
2005................ 3.70 27
2004(c)............. 2.82 46
Advisor Shares
2006*............... 3.65% 11%
2005................ 3.52 27
2004(c)............. 2.49 46
SHORT-TERM MUNICIPAL BOND FUN
Investor Shares
2006*............... 3.38% 11%
2005................ 3.03 36
2004(c)............. 1.95 17
Advisor Shares
2006*............... 3.13% 11%
2005................ 2.80 36
2004(c)............. 1.68 17
<FN>
* For the six months ended April 30, 2006 (unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.
(a) Total returns would have been lower had certain Fund expenses not been
waived or reimbursed during the periods shown (See Note 3). Total return
calculations for a period of less than one year are not annualized.
(b) Commenced operations on December 31, 2004. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.
(c) Commenced operations on December 31, 2003. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.
</FN>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
76 & 77
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2006 (UNAUDITED)
NOTE 1 -- ORGANIZATION
Schroder Global Series Trust ("SGST") is an open-end series management
investment company registered under the Investment Company Act of 1940, as
amended. SGST was organized as a business trust under the laws of The
Commonwealth of Massachusetts on May 27, 2003. Schroder North American Equity
Fund (the "SGST Fund") is the only series of shares currently comprising the
Trust and commenced operations on September 17, 2003.
Schroder Capital Funds (Delaware) ("SCFD") is an open-end series management
investment company registered under the Investment Company Act of 1940, as
amended. SCFD was organized as a Maryland corporation on July 30, 1969;
reorganized as Schroder Capital Funds, Inc., a series company, on February 29,
1988; and reorganized on January 9, 1996, as a Delaware business trust. SCFD has
an unlimited number of authorized shares, which are divided into two separate
investment portfolios: Schroder U.S. Opportunities Fund and Schroder
International Alpha Fund (formerly "Schroder International Fund") (collectively,
the "SCFD Funds"). A third portfolio of SCFD, Schroder U.S. Large Cap Equity
Fund, was liquidated following its close of business on April 27, 2006.
Schroder Series Trust ("SST") is an open-end series management investment
company registered under the Investment Company Act of 1940, as amended. SST was
organized as a business trust under the laws of The Commonwealth of
Massachusetts on May 6, 1993. SST has an unlimited number of authorized shares,
which are divided into seven separate investment portfolios: Schroder U.S. Small
and Mid Cap Opportunities Fund, Schroder Emerging Market Equity Fund, Schroder
Enhanced Income Fund, Schroder Total Return Fixed Income Fund (formerly
"Schroder U.S. Core Fixed Income Fund"), Schroder Municipal Bond Fund, Schroder
Short-Term Municipal Bond Fund (collectively, the "SST Funds", and together with
the SCFD Funds and the SST Funds, the "Funds") and Schroder Strategic Bond Fund.
Schroder U.S. Small and Mid Cap Opportunities Fund and Schroder Emerging Market
Equity Fund commenced operations on March 31, 2006. Schroder Strategic Bond Fund
had not commenced operations as of April 30, 2006.
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 disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
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 accounting principles generally accepted in
the United States of America.
VALUATION OF INVESTMENTS: Portfolio securities listed on recognized stock
exchanges are valued at the last reported sale price on the exchange on which
the securities are principally traded, except that NASDAQ official closing
prices for all NASDAQ National Market and NASDAQ Small Cap Market Securities are
used, where applicable. Listed securities traded on recognized stock exchanges
where last sale prices are not available are valued at the mean of the closing
bid and asked prices ("mid-market price"). Securities traded in over-the-counter
markets are valued at the most recent reported mid-market price. Prices used for
valuations generally are provided by independent pricing services. Options on
indices or exchange-traded fund (ETF) shares are valued at the closing
mid-market price. Except as noted below with regard to below investment grade
and emerging markets debt instruments, fixed income 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 fixed income securities, or through obtaining independent
quotes from market makers. Below investment grade and emerging markets debt
instruments ("high yield debt") will ordinarily be valued at prices supplied by
a Fund's pricing service based on the mean of bid and asked prices supplied by
brokers or dealers. Short-term investments, having a maturity of 60 days or
less, are valued at amortized cost, a form of fair valuation which approximates
market value, pursuant to procedures adopted by the Funds' Board of Trustees
("Trustees"). Other securities and assets for which market quotations are not
readily available are valued in accordance with Fair Value Procedures
established by the Funds' Trustees. The Funds' Fair Value Procedures are
implemented through a Fair Value Committee (the "Committee") designated by the
Funds' Trustees. Some of the more common reasons that may necessitate that a
security be valued using Fair Value Procedures include: the security's trading
has been halted or suspended; the security has been de-listed from a
- --------------------------------------------------------------------------------
78
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
national exchange; the security's primary trading market is temporarily closed
at a time when under normal conditions it would be open; or the security's
primary pricing source is not able or willing to provide a price. When a
security is valued in accordance with the Fair Value Procedures, the Committee
will determine the value after taking into consideration relevant information
reasonably available to the Committee.
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular security's
last trade and the time at which a Fund calculates its net asset value. The
closing prices of such securities may no longer reflect their market values at
the time the Fund calculates its net asset value if an event that could
materially affect the value of those securities (a "Significant Event") has
occurred between the time of the security's last trade and the time that the
Fund calculates its net asset value. A Significant Event may relate to a single
issuer or to an entire market sector. If a Fund becomes aware of a Significant
Event that has occurred with respect to a security or group of securities after
the closing of the exchange or market on which the security or securities
principally trade, but before the time at which the Fund calculates its net
asset value, a Committee meeting may be called.
Schroder International Alpha and Schroder Emerging Market Equity Funds use a
third party fair valuation vendor which provides a fair value for foreign
securities held by Schroder International Alpha and Schroder Emerging Market
Equity Funds based on certain factors and methodologies applied by the vendor in
the event that there is movement in the U.S. market that exceeds a specific
threshold established by the Committee in consultation with the Trustees. Such
methodologies generally involve tracking valuation correlations between the U.S.
market and each non-U.S. security. In consultation with the Trustees, the
Committee also determines a "confidence interval" which will be used, when the
threshold is exceeded, to determine the level of correlation between the value
of a foreign security and movements in the U.S. market before a particular
security will be fair valued. In the event that the threshold established by the
Committee is exceeded on a specific day, the Schroder International Alpha and
Schroder Emerging Market Equity Funds will typically value non-U.S. securities
in their portfolios that exceed the applicable confidence interval based upon
the fair values provided by the vendor.
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. Capital gain taxes on securities in certain
foreign countries are accrued on unrealized appreciation and due when realized.
INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date. Dividend
income is recorded net of unrecoverable withholding tax. Interest income is
recorded on an accrual basis. Discounts and premiums on fixed income securities
are accreted and amortized using the effective interest method. Foreign dividend
and interest income amounts and realized capital gains or losses are converted
to U.S. dollar equivalents using foreign exchange rates in effect at the date of
the transactions. Distributions received on securities that represent a return
of capital or capital gain are recorded as a reduction of costs of investments
and/or as a realized gain. The Funds estimate the components of distributions
received that may be considered non-taxable distributions or capital gain
distributions.
EXPENSES: Expenses are recorded on an accrual basis. Most of the expenses of the
Funds can be directly attributable to a specific Fund. Expenses not directly
attributable to a specific Fund are allocated among the Funds based on relative
average net assets or another appropriate methodology. Class specific expenses
are borne by that class. Fund expenses are prorated to the respective classes
based on relative net assets.
CLASSES: Income, realized and unrealized gains and losses of a Fund are prorated
to the respective classes of shares based on relative net assets.
- --------------------------------------------------------------------------------
79
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends and distributions to
shareholders from net investment income and from net realized capital gains, if
any, are declared and distributed at least annually for the Schroder North
American Equity, Schroder U.S. Opportunities, Schroder U.S. Small and Mid Cap
Opportunities, Schroder International Alpha and Schroder Emerging Market Equity
Funds. Dividends to shareholders from net investment income are declared daily
and distributed monthly and distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually for the
Schroder Enhanced Income, Schroder Total Return Fixed Income, Schroder Municipal
Bond and Schroder Short-Term Municipal Bond Funds. Distributions are recorded on
the ex-dividend date.
FOREIGN CURRENCY: Foreign currency amounts are translated into U.S. dollars at
the mean of the bid and asked prices of such currencies against U.S. dollars as
follows: (i) assets and liabilities at the rate of exchange at the end of the
respective period; and (ii) purchases and sales of securities and income and
expenses at the rate of exchange prevailing on the dates of such transactions.
The portion of the results of operations arising from changes in the exchange
rates and the portion due to fluctuations arising from changes in the market
prices of securities are not isolated. Such fluctuations are included with the
net realized and unrealized gain or loss on investments.
Certain Funds may enter into forward foreign currency contracts to protect the
U.S. dollar value of the underlying portfolio of securities against the effect
of possible adverse movements in foreign exchange rates. Principal risks
associated with such transactions include the movement in value of the foreign
currency relative to the U.S. dollar and the ability of the counterparty to
perform. Fluctuations in the value of such forward foreign currency transactions
are recorded daily as unrealized gain or loss; realized gain or loss includes
net gain or loss on transactions that have terminated by settlement or by the
Funds entering into offsetting commitments.
WHEN-ISSUED SECURITIES: Each Fund may purchase securities on a when-issued,
delayed delivery, or forward commitment basis. These transactions involve a
commitment by the Fund to purchase a security for a predetermined price or
yield, with payments and delivery taking place more than seven days in the
future, or after a period longer than the customary settlement period for that
type of security. These transactions may increase the overall investment
exposure for a Fund and involve a risk of loss if the value of the securities
declines prior to the settlement date.
DERIVATIVE INSTRUMENTS: Certain Funds may purchase and sell a variety of
"derivative" instruments (for example options or futures) in order to gain
exposure to particular securities or markets, in connection with hedging
transactions, and to increase total return. A Fund's use of derivative
instruments involves the risk the instrument may not work as intended due to
unanticipated developments in market conditions or other causes. Derivatives
often involve the risk that the other party to the transaction will be unable to
close out the position at any particular time or at an acceptable price. When a
Fund uses certain types of derivative instruments for investment purposes, it
could lose more than the original cost of the investment and its potential loss
could be unlimited. Also, suitable derivative transactions may not be available
in all circumstances, and there can be no assurance that a Fund will engage in
these transactions when that would be beneficial.
FUTURES: Financial futures contracts are valued based upon their quoted daily
settlement prices; changes in initial settlement value (represented by cash paid
to or received from brokers as "variation margin") are accounted for as
unrealized appreciation (depreciation). When futures contracts are closed, the
difference between the opening value at the date of purchase and the value at
closing is recorded as realized gain or loss in the Statements of Operations.
Futures contracts may be used in order to hedge against unfavorable changes in
the value of securities or to attempt to realize profits. Futures contracts
involve leverage and are subject to market risk that may exceed the amounts
recognized in the Statements of Assets and Liabilities. Risks arise from the
possible significant movements in prices. The change in value of futures
contracts primarily corresponds with the value of the securities or other index
or amount underlying the contracts, but may not precisely correlate with the
change in value of such securities or other index or amount. In addition, there
is the risk that a Fund may not be able to enter into a closing transaction
because of an illiquid secondary market.
- --------------------------------------------------------------------------------
80
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
EQUITY-LINKED AND INDEX-LINKED WARRANTS: The Schroder International Alpha and
Schroder Emerging Market Equity Funds may invest in equity-linked and
index-linked warrants. The Fund purchases the equity-linked and index-linked
warrants from a broker, who in turn is expected to purchase shares in the local
market and issue a call warrant hedged on the underlying holdings. If the Fund
exercises its call and closes its position, the shares are expected to be sold
and the warrant redeemed with the proceeds. Each warrant typically represents
one share of the underlying stock or basket of stocks representing the index.
Therefore, the price, performance and liquidity of the warrant are all directly
linked to the underlying stock or index, less transaction costs. Equity-linked
warrants are valued at the closing price of the underlying securities, then
adjusted for stock dividends declared by the underlying securities. In addition
to the market risk related to the underlying holdings, the Fund bears additional
counterparty risk with respect to the issuing broker. Moreover, there is
currently no active trading market for either equity-linked or index-linked
warrants. A Fund may also purchase warrants, issued by banks and other financial
institutions, whose values are based on the values from time to time of one or
more securities indices.
RESTRICTED SECURITIES: As of April 30, 2006, the following Funds owned private
placement investments that were purchased through private offerings or acquired
through initial public offerings and cannot be sold without prior registrations
under the Securities Act of 1933 or pursuant to an exemption therefrom. These
investments are valued in accordance with procedures approved by the Trustees.
The acquisition dates of these investments, along with their costs and values as
of April 30, 2006 were as follows:
SHARES/
PRINCIPAL ACQUISITION % OF NET
AMOUNT DATE COST MARKET VALUE ASSETS
- ------------------------------------------------------------------------------------------------------------
U.S. OPPORTUNITIES FUND
Stroud Energy 45,900 9/15/05 $ 734,400 $ 734,400 0.4%
MUNICIPAL BOND FUND
Crenshaw County, Industrial
Development Board RB
5.600%, 3/01/08 $ 250,000 2/26/04 259,231 253,173 0.2
Denver City & County Multi-
Family Housing RB
3.820%, 4/15/14 500,000 4/17/06 500,000 500,000 0.3
Jacksonville, Health
Facilities RB
5.000%, 11/15/15 125,000 8/25/05 130,134 125,122 0.1
Kidspeace National Centers
of Georgia, USDA
4.500%, 12/01/28 250,000 1/05/04 250,000 247,925 0.2
SHORT-TERM MUNICIPAL BOND FUND
Atlantic City, Municipal
Utilities Authority RB
5.000%, 1/01/08 3,895,000 6/09/05 3,999,495 3,934,612 2.5
Cabazon Band Mission
Indians RB
11.950%, 7/14/06 103,688 7/09/04 103,978 104,087 0.1
Denver City & County Multi-
Family Housing RB
3.820%, 4/15/14 3,000,000 10/19/05 3,000,000 3,000,000 1.9
Kidspeace National Centers
of Georgia, USDA
4.500%, 12/01/28 250,000 1/05/04 250,000 247,925 0.2
- --------------------------------------------------------------------------------
81
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
OFFERING COSTS: Offering costs, which include typesetting and prospectus
printing and the preparation of the initial registration statement of the
Schroder U.S. Small and Mid Cap Opportunities, Schroder Emerging Market Equity,
Schroder Enhanced Income and Schroder Total Return Fixed Income Funds are being
amortized over a twelve-month period from each Fund's inception. As of April 30,
2006, such offering costs for Schroder U.S. Small and Mid Cap Opportunities Fund
and Schroder Emerging Market Equity Fund are estimated but have not been paid.
NOTE 3 -- INVESTMENT ADVISORY FEES, ADMINISTRATION AGREEMENTS AND
DISTRIBUTIONS PLANS
The Funds have entered into investment advisory agreements with Schroder
Investment Management North America, Inc., ("SIMNA"). Under these agreements,
SIMNA provides investment management services and is entitled to receive for its
services compensation, payable monthly, at the following annual rates based on
average daily net assets of each Fund taken separately: 0.25% for the Schroder
North American Equity Fund; 0.50% up to $100 million, 0.40% of the next $150
million, and 0.35% in excess of $250 million for the Schroder U.S. Opportunities
Fund; 1.00% for each of Schroder U.S. Small and Mid Cap Opportunities Fund and
Schroder Emerging Market Equity Fund; effective April 1, 2006, 0.975% for the
Schroder International Alpha Fund and prior to April 1, 2006, 0.50% up to $100
million, 0.40% of the next $150 million, and 0.35% in excess of $250 million for
the Schroder International Alpha Fund; 0.25% for each of Schroder Enhanced
Income Fund and Schroder Total Return Fixed Income Fund; and 0.40% for each of
Schroder Municipal Bond Fund and Schroder Short-Term Municipal Bond Fund. SIMNA
contractually agreed to limit the investment advisory fees payable to it by
Schroder International Alpha Fund through March 31, 2006 to the annual rate of
0.45% of that Fund's average daily net assets.
On February 10, 2004, SIMNA retained its affiliate, Schroder Investment
Management North America Limited ("SIMNA Ltd.") to serve as sub-advisor
responsible for the portfolio management of the Schroder North American Equity
Fund, the Schroder International Alpha Fund and the Schroder Emerging Market
Equity Fund. Prior to March 1, 2006, for its services, SIMNA paid SIMNA Ltd. 25%
of the investment advisory fees SIMNA received from these Funds. Effective March
1, 2006, SIMNA pays SIMNA Ltd. 50% of the investment advisory fees it receives
from these Funds.
The administrator of the Schroder U.S. Opportunities Fund and SGST is Schroder
Fund Advisors, Inc. ("Schroder Advisors"), a wholly owned subsidiary of SIMNA.
For its services, Schroder Advisors is entitled to receive as compensation at an
annual rate payable monthly of 0.25% of the average daily net assets of Schroder
U.S. Opportunities Fund. Schroder Advisors receives no compensation for its
services for the Schroder North American Equity Fund. Prior to April 1, 2006,
Schroder Advisors served as the administrator to the Schroder International
Alpha Fund. For its services, Schroder Advisors received compensation at an
annual rate payable monthly of 0.225% of the average daily net assets of
Schroder International Alpha Fund. Effective April 1, 2006, SIMNA acts as
administrator to the Schroder International Alpha Fund. SIMNA's compensation for
its services as administrator is included in the Schroder International Alpha
Fund's advisory fees.
Effective November 5, 2001, SCFD entered into a sub-administration and
accounting agreement with SEI Investments Global Funds Services ("SEI") and
Schroder Advisors. On January 4, 2004, SST entered into an amended
administration and accounting agreement with SEI. On January 31, 2005, SGST
entered into a sub-administration and accounting agreement with SEI. Effective
November 1, 2004, under the agreements with SEI, the SCFD Funds and the SST
Funds pay fees to SEI based on the combined average daily net assets of all the
SCFD Funds and the SST Funds according to the following annual rates: 0.115% on
the first $600 million of such assets, 0.11% on the next $400 million of such
assets, 0.09% on the next $1 billion of such assets and 0.07% on assets in
excess of $2 billion. Each Fund pays its pro rata portion of such expenses.
Effective January 28, 2005, SGST pays SEI a fee, computed and paid monthly, at
an annual rate of 0.013% of the SGST Fund's average daily net assets up to $1
billion and 0.005% of the SGST Fund's average daily net assets over $1 billion.
In order to limit the Funds' expenses, SIMNA was contractually obligated to
reduce its compensation (and, if necessary, to pay certain expenses of each of
the Funds) for the period ended April 30, 2006, to the extent a Fund's Investor
Shares' total operating expenses exceeded the following annual rates (based on
average net assets of each Fund's Investor Shares taken
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
separately): Schroder U.S. Opportunities Fund: 2.00%; Schroder U.S. Small and
Mid Cap Opportunities Fund: 1.40%; Schroder International Alpha Fund: 1.25%;
Schroder Emerging Market Equity Fund: 1.75%; Schroder Enhanced Income Fund:
0.40%; Schroder Total Return Fixed Income Fund: 0.40%; Schroder Municipal Bond
Fund: 0.55%; and Schroder Short-Term Municipal Bond Fund: 0.55%. These
contractual expense limitations have been extended through February 28, 2007 for
the Schroder Enhanced Income, Schroder Total Return Fixed Income, Schroder
Municipal Bond and the Schroder Short-Term Municipal Bond Funds, and through
March 31, 2007 for Schroder International Alpha, Schroder U.S. Small and Mid Cap
Opportunities and Schroder Emerging Market Equity Funds. Effective May 1, 2006
through March 31, 2007, SIMNA is contractually obligated to reduce its
compensation, with regard to the Schroder U.S. Opportunities Fund's Investor
Shares, to keep its total operating expenses from exceeding 1.70%. For the
period ended April 30, 2006, SIMNA was contractually obligated to reduce its
compensation (and, if necessary to pay certain expenses of each of the Funds),
to the extent a Fund's Advisor Shares' total operating expenses exceeded the
following annual rates (based on average net assets of each Fund's Advisor
Shares taken separately): Schroder U.S. Small and Mid Cap Opportunities Fund:
1.65%; Schroder Emerging Market Equity Fund: 2.00%; Schroder Enhanced Income
Fund: 0.65%; Schroder Total Return Fixed Income Fund: 0.65%; Schroder Municipal
Bond Fund: 0.80%; and Schroder Short-Term Municipal Bond Fund: 0.80%. These
contractual expense limitations have been extended through February 28, 2007 for
the Schroder Enhanced Income, Schroder Total Return Fixed Income, Schroder
Municipal Bond and the Schroder Short-Term Municipal Bond Funds, and through
March 31, 2007 for the Schroder U.S. Small and Mid Cap Opportunities and the
Schroder Emerging Market Equity Funds.
The Schroder North American Equity, Schroder U.S. Small and Mid Cap
Opportunities, Schroder Emerging Market Equity, Schroder Enhanced Income,
Schroder Total Return Fixed Income, Schroder Municipal Bond and Short-Term
Municipal Bond Funds have adopted a Distribution Plan pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended, that allows each Fund to
pay distribution and other fees with respect to its Advisor Shares. Under the
Plan, a Fund may make payments at an annual rate of up to 0.25%, except for the
Schroder North American Equity Fund who makes payments at an annual rate of up
to 0.35%, of the daily net assets attributable to its Advisor Shares to
compensate Schroder Fund Advisors Inc. (the "Distributor") for distribution
services and certain shareholder services with respect to the Fund's Advisor
Shares.
NOTE 4 -- REDEMPTION FEE
The Schroder U.S. Opportunities, Schroder U.S. Small and Mid Cap Opportunities,
Schroder International Alpha, and Schroder Emerging Market Equity Funds impose a
2.00% redemption fee on shares redeemed (including in connection with an
exchange) two months or less from their date of purchase. These charges are
intended principally to cover transaction costs and other costs and expenses
that each Fund incurs (directly and indirectly) in connection with these
redemptions. These fees, which are not sales charges, are retained by the Funds
and not paid to Schroder Advisors or any other entity. The redemption fees are
included in the Statements of Changes in Net Assets under "Redemption fees", and
are included as part of Capital paid-in on the Statements of Assets and
Liabilities. The redemption fees paid to the Schroder U.S. Opportunities,
Schroder U.S. Small and Mid Cap Opportunities, Schroder International Alpha and
Schroder Emerging Market Equity Funds for the six months ended April 30, 2006
totaled $2,487, $0, $0 and $0, respectively.
NOTE 5 -- TRANSACTIONS WITH AFFILIATES
TRUSTEES' FEES: The Funds pay no compensation to Trustees who are interested
persons of the Trusts, SIMNA or Schroder Advisors. For their services as
Trustees of all open-end investment companies distributed by Schroder Advisors,
Trustees who are not interested persons of the Funds, 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
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
such Funds receive an additional $1,000 per year. Payment of meeting fees will
be allocated only among those Funds to which the meeting relates.
Certain officers of the Funds are also officers of SIMNA and Schroder Advisors.
Such officers are paid no fees by the Funds for serving as officers of the
Funds.
NOTE 6 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund, for the six months ended April 30, 2006
were as follows:
PURCHASES SALES AND MATURITIES
-------------- --------------------
Schroder North American Equity Fund ............... $628,942,607 $457,828,076
Schroder U.S. Opportunities Fund .................. 83,554,195 72,380,201
Schroder U.S. Small and Mid Cap Opportunities Fund 6,788,097 76,449
Schroder International Alpha Fund ................. 17,729,818 3,797,031
Schroder Emerging Market Equity Fund .............. 10,550,909 645,015
Schroder Enhanced Income Fund ..................... 17,917,712 24,483,487
Schroder Total Return Fixed Income Fund ........... 7,236,114 3,196,204
Schroder Municipal Bond Fund ...................... 36,336,038 12,337,824
Schroder Short-Term Municipal Bond Fund ........... 13,626,590 10,807,219
Purchases and proceeds from sales and maturities of U.S. Government securities
for the six months ended April 30, 2006 were as follows:
PURCHASES SALES AND MATURITIES
----------- --------------------
Schroder Enhanced Income Fund ...................... $13,034,996 $ 5,270,735
Schroder Total Return Fixed Income Fund ............ 14,948,462 10,862,010
Both redemptions and subscriptions in-kind reflect the valuation of the
underlying securities in accordance with the Funds' valuation policy. The asset
price used to affect the redemption is the respective asset price used to
calculate the net asset value of the shares redeemed. For the periods ended
April 30, 2006, October 31, 2005, and April 30, 2005, the Schroder North
American Equity Fund realized gains from in-kind redemptions of $12,066,060,
$1,239,508, and $2,281,045, respectively.
NOTE 7 -- FEDERAL INCOME TAXES
It is the intention of the Funds for each Fund to continue to qualify as a
"regulated investment company" by complying with the requirements of Subchapter
M of the Internal Revenue Code of 1986, as amended. By so qualifying, the Funds
would not be subject to Federal income taxes to the extent that, among other
things, they distribute substantially all of their taxable income, including
realized capital gains, for the fiscal year. In addition, as a result of
distributing substantially all of their net investment income during each
calendar year, capital gains and certain other amounts, if any, the Funds would
not be subject to a Federal excise tax.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States of America. These book/tax differences are either tem-
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
porary or permanent in nature. Any permanent differences, which may result in
distribution reclassifications, are primarily due to differing treatments for
gains resulting from redemptions in-kind, paydown gains and losses,
distributions in excess, investments in passive foreign investment companies,
net operating losses and foreign currency transactions. Distributions from
short-term gains and from gains on foreign currency transactions are treated as
distributions from ordinary income for tax purposes.
The tax character of dividends and distributions declared during the years or
periods ended October 31, 2005 and October 31, 2004 (unless otherwise indicated)
were as follows:
ORDINARY TAX-EXEMPT LONG-TERM
INCOME INCOME CAPITAL GAIN TOTAL
----------- ----------- ------------ -----------
Schroder North American Equity Fund
2005*...................................... $26,204,109 $ -- $22,269,052 $48,473,161
2005** .................................... 45,862,771 -- 5,815,931 51,678,702
2004** .................................... 5,734,622 -- -- 5,734,622
Schroder U.S. Opportunities Fund
2005 ...................................... 1,951,101 -- 7,228,034 9,179,135
2004 ...................................... -- -- -- --
Schroder International Alpha Fund
2005 ...................................... 71,012 -- -- 71,012
2004 ...................................... 121,800 -- -- 121,800
Schroder Enhanced Income Fund
2005+...................................... 2,343,082 -- -- 2,343,082
Schroder Total Return Fixed Income Fund
2005+...................................... 304,071 -- -- 304,071
Schroder Municipal Bond Fund
2005....................................... 478,251 2,331,139 -- 2,809,390
2004++..................................... 60,062 832,010 -- 892,072
Schroder Short-Term Municipal Bond Fund
2005....................................... 550,043 2,562,209 -- 3,112,252
2004++..................................... 62,985 867,920 -- 930,905
<FN>
* For the six months ended October 31, 2005. The Fund's fiscal year end
changed from April 30 to October 31.
** For the year or period ended April 30,
+ Fund commenced investment activities on December 31, 2004.
++ Fund commenced investment activities on December 31, 2003.
</FN>
As of October 31, 2005, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL UNREALIZED OTHER EARNINGS
ORDINARY TAX-EXEMPT LONG-TERM LOSS APPRECIATION TEMPORARY (ACCUMULATED
INCOME INCOME CAPITAL GAIN CARRYFORWARD (DEPRECIATION) DIFFERENCES LOSSES)
------------- ------------- ------------ ------------ -------------- ----------- -------------
Schroder North
American
Equity Fund .....$15,901,042 $ -- $12,681,769 $ -- $55,991,950 $ (58,001) $ 84,516,760
Schroder U.S.
Opportunities
Fund ............ -- -- 5,427,422 -- 13,859,892 -- 19,287,314
Schroder International
Alpha Fund ...... 113,507 -- -- (12,493,283) 531,352 (389) (11,848,813)
Schroder Enhanced
Income Fund ..... 396,038 -- -- (7,778) (412,256) (396,048) (420,044)
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED CAPITAL UNREALIZED OTHER EARNINGS
ORDINARY TAX-EXEMPT LONG-TERM LOSS APPRECIATION TEMPORARY (ACCUMULATED
INCOME INCOME CAPITAL GAIN CARRYFORWARD (DEPRECIATION) DIFFERENCES LOSSES)
------------- ------------- ------------ ------------ -------------- ----------- -------------
Schroder Total Return
Fixed Income Fund $107,136 $ -- $-- $ -- $(185,011) $ (75,409) $ (153,284)
Schroder Municipal
Bond Fund ....... 62,569 335,068 -- (438,185) (677,028) (371,147) (1,088,723)
Schroder Short-Term
Municipal
Bond Fund ....... 56,231 366,598 -- (331,154) (594,943) (396,465) (899,733)
As of October 31, 2005, the Funds listed below had net tax basis capital loss
carryforwards, for Federal income tax purposes, that may be applied against
future taxable gains until their expiration date as follows:
EXPIRATION
DATES
AMOUNT OCTOBER 31,
---------- -----------
Schroder International Alpha Fund ................... $8,139,161 2009
3,440,360 2010
913,762 2011
Schroder Enhanced Income Fund........................ 7,778 2013
Schroder Municipal Bond Fund ....................... 338,378 2012
99,807 2013
Schroder Short-Term Municipal Bond Fund ............. 96,239 2012
234,915 2013
During the year ended October 31, 2005, capital loss carryforwards that were
utilized to offset gains were as follows:
AMOUNT
----------
Schroder International Alpha Fund ............... $1,033,369
At April 30, 2006, the identified cost for Federal income tax purposes of
investments owned by each Fund and their respective gross unrealized
appreciation and depreciation were as follows:
GROSS UNREALIZED NET UNREALIZED
IDENTIFIED ---------------- APPRECIATION
TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
-------------- ------------ ------------ --------------
Schroder North American Equity Fund..... $1,409,017,566 $176,307,534 $(41,624,542) $134,682,992
Schroder U.S. Opportunities Fund......... 157,628,764 32,681,647 (2,480,392) 30,201,255
Schroder U.S. Small and Mid Cap
Opportunities Fund ................... 7,170,181 229,532 (85,105) 144,427
Schroder International Alpha Fund........ 20,511,022 1,718,958 (65,694) 1,653,264
Schroder Emerging Market Equity Fund.... 9,956,818 643,191 (50,832) 592,359
Schroder Enhanced Income Fund........... 109,350,908 70,737 (498,161) (427,424)
Schroder Total Return Fixed Income Fund.. 23,040,126 7,500 (415,214) (407,714)
Schroder Municipal Bond Fund............. 166,657,282 394,297 (1,895,762) (1,501,465)
Schroder Short-Term Municipal Bond Fund.. 156,996,508 255,986 (1,234,295) (978,309)
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NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
APRIL 30, 2006 (UNAUDITED)
NOTE 8 -- PORTFOLIO INVESTMENT RISKS
Schroder International Alpha Fund has a relatively large portion of its assets
invested in companies domiciled in particular foreign countries, including
Japan, the United Kingdom and emerging markets. The Fund may be more susceptible
to political, social and economic events adversely affecting those countries and
such issuers.
Schroder Emerging Market Equity Fund may invest more than 25% of its total
assets in issuers located in any one country. To the extent that it does so, the
Fund is susceptible to a range of factors that could adversely affect its
holdings in issuers of that country, including political and economic
developments and foreign exchange-rate fluctuations. As a result of investing
substantially in a single country, the value of the Fund's assets may fluctuate
more widely than the value of shares of a comparable fund with a lesser degree
of geographic concentration. The Fund invests in countries with limited or
developing capital markets. Investments in these markets may involve greater
risk than investments in more developed markets.
NOTE 9 -- BENEFICIAL INTEREST
The following table shows the number of shareholders each owning of record, or
to the knowledge of the Funds beneficially, 5% or more of shares of a Fund
outstanding as of April 30, 2006 and the total percentage of shares of the Fund
held by such shareholders. The table includes omnibus accounts that hold shares
on behalf of several shareholders.
5% OR GREATER SHAREHOLDERS
--------------------------
NUMBER % OF FUND HELD
------ --------------
Schroder North American Equity Fund........................................... 3 92.83%
Schroder U.S. Opportunities Fund............................................... 3 71.97
Schroder U.S. Small and Mid Cap Opportunities Fund............................ 1 86.05
Schroder International Alpha Fund............................................. 1 91.73
Schroder Emerging Market Equity Fund .......................................... 2 100.00
Schroder Enhanced Income Fund ................................................. 1 97.02
Schroder Total Return Fixed Income Fund ....................................... 3 93.65
Schroder Municipal Bond Fund.................................................. 4 83.34
Schroder Short-Term Municipal Bond Fund....................................... 3 86.10
Some of the accounts shown above for Schroder U.S. Small and Mid Cap
Opportunities Fund, Schroder International Alpha Fund, Schroder Emerging Market
Equity Fund, Schroder Enhanced Income Fund and Schroder Total Return Fixed
Income Fund are owned by an affiliate of SIMNA.
NOTE 10 -- SUBSEQUENT EVENTS
Effective May 1, 2006, the Schroder U.S. Opportunities Fund will pay SIMNA 1.00%
of the daily net assets of the Fund for its investment management services.
SIMNA also began acting as the administrator to the Schroder U.S. Opportunities
Fund. SIMNA's compensation for its services as administrator is included in the
Funds advisory fees.
Effective May 15, 2006, the Schroder U.S. Opportunities and Schroder
International Alpha Funds each launched a new Advisor Share class. The Schroder
U.S. Opportunities and Schroder International Alpha Funds have adopted a
Distribution Plan pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended, that allows each Fund to pay distribution and other fees with
respect to its Advisor Shares. Under the Plan, the Fund's may make payments at
an annual rate of up to 0.25% of the daily net assets attributable to its
Advisor Shares. Until May 9, 2007, SIMNA has contractually agreed to reduce its
compensation (and, if necessary pay certain expenses of each of the Funds), to
the extent a Fund's Advisor Shares' total operating expenses exceed the
following annual rates (based on average net assets of each Fund's Advisor
Shares taken separately): Schroder U.S. Opportunities Fund: 1.95% and Schroder
International Alpha Fund: 1.50%.
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PROXY VOTING
A description of the Funds' proxy voting policies and procedures and information
regarding how the Funds voted proxies related to portfolio securities during the
most recent 12-month period ended June 30 is available, without charge, upon
request, by visiting the SEC's website at http://www.sec.gov, or by calling
1-800-464-3108 and requesting a copy of the applicable Fund's Statement of
Additional Information.
FORM N-Q
The Funds file their complete schedules of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Funds' Form
N-Q are available on the SEC's website at http://www.sec.gov, and may be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The Funds' Form N-Q are also available at
www.schroderfunds.com.
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DISCLOSURE OF FUND EXPENSES (UNAUDITED)
We believe it is important for you to understand the impact of fees regarding
your investment. All mutual funds have operating expenses. As a shareholder of
the Fund, you incur ongoing costs, which include costs for portfolio management,
administrative services, and shareholder reports (like this one), and in the
case of Advisor Shares, distribution (12b-1) fees, among others. Operating
expenses, which are deducted from a fund's gross income, directly reduce the
investment return of the fund. A fund's expenses are expressed as a percentage
of its average net assets. This figure is known as the expense ratio. The
following examples are intended to help you understand the ongoing costs (in
dollars) of investing in your Fund and to compare these costs with those of
other mutual funds. The examples are based on an investment of $1,000 made at
the beginning of the period shown and held for the entire period.
The table on the following page illustrates your Fund's costs in two ways.
o ACTUAL EXPENSES. This section helps you to estimate the actual expenses after
fee waivers that you paid over the period. The "Ending Account Value" shown
is derived from the Fund's actual return, and the fourth column shows the
dollar amount that would have been paid by an investor who started with
$1,000 in the Fund. You may use the information here, together with the
amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the
number given for your Fund under the heading "Expenses Paid During Period."
o HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. This section is intended to
help you compare your Fund's costs with those of other mutual funds. It
assumes that the Fund had a return of 5% before expenses during the year, and
that it incurred expenses at the rate of which it in the past did incur
expenses. In this case, because the return used is not the Fund's actual
return, the results may not be used to estimate the actual ending balance of
an account in the Fund over the period or expenses you actually paid. The
example is useful in making comparisons because the Securities and Exchange
Commission requires all mutual funds to calculate expenses in this table
based on a 5% return. You can assess your Fund's costs by comparing this
hypothetical example with the hypothetical examples that appear in
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help
you compare ongoing costs only and do not reflect any transactional costs such
as redemption fees, which are described in the Prospectus. If this fee were
applied to your account, your costs would be higher.
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DISCLOSURE OF FUND EXPENSES (UNAUDITED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/01/05 4/30/06 Ratios Period*
- --------------------------------------------------------------------------------------------------------------
Schroder North American Equity Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,102.50 0.33% $1.72
Advisor Shares** 1,000.00 1,013.50 0.67 0.55
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,023.16 0.33% $1.66
Advisor Shares 1,000.00 1,021.47 0.67 3.36
- --------------------------------------------------------------------------------------------------------------
Schroder U.S. Opportunities Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,197.20 1.03% $5.61
Hypothetical Example for
Comparison Purposes 1,000.00 1,019.69 1.03 5.16
- --------------------------------------------------------------------------------------------------------------
Schroder U.S. Small and Mid Cap Opportunities Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares** $1,000.00 $1,014.00 1.40% $1.16
Advisor Shares** 1,000.00 1,014.00 1.61 1.33
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,017.85 1.40% $7.00
Advisor Shares 1,000.00 1,016.81 1.61 8.05
- --------------------------------------------------------------------------------------------------------------
Schroder International Alpha Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,248.50 1.25% $6.97
Hypothetical Example for
Comparison Purposes 1,000.00 1,018.60 1.25 6.26
- --------------------------------------------------------------------------------------------------------------
Schroder Emerging Market Equity Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares** $1,000.00 $1,062.00 1.75% $1.48
Advisor Shares** 1,000.00 1,061.00 2.00 1.69
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,016.12 1.75% $8.75
Advisor Shares 1,000.00 1,014.88 2.00 9.99
- --------------------------------------------------------------------------------------------------------------
Schroder Enhanced Income Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,021.30 0.40% $2.00
Advisor Shares 1,000.00 1,019.80 0.65 3.26
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.81 0.40% $2.01
Advisor Shares 1,000.00 1,021.57 0.65 3.26
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DISCLOSURE OF FUND EXPENSES (UNAUDITED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/01/05 4/30/06 Ratios Period*
- --------------------------------------------------------------------------------------------------------------
Schroder Total Return Fixed Income Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,007.90 0.40% $1.99
Advisor Shares 1,000.00 1,005.90 0.65 3.23
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.81 0.40% $2.01
Advisor Shares 1,000.00 1,021.57 0.65 3.26
- --------------------------------------------------------------------------------------------------------------
Schroder Municipal Bond Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,017.50 0.55% $2.75
Advisor Shares 1,000.00 1,015.20 0.80 4.00
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.07 0.55% $2.76
Advisor Shares 1,000.00 1,020.83 0.80 4.01
- --------------------------------------------------------------------------------------------------------------
Schroder Short-Term Municipal Bond Fund
- --------------------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,013.80 0.55% $2.75
Advisor Shares 1,000.00 1,012.50 0.80 3.99
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.07 0.55% $2.76
Advisor Shares 1,000.00 1,020.83 0.80 4.01
<FN>
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the account period, multiplied by 181/365 (to
reflect the one-half year period).
** Fund or Shares commenced operations on March 31, 2006. Expenses are equal to
the Fund's annualized expense ratio multiplied by the average account value
over the period, multiplied by 30/365.
</FN>
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SHAREHOLDER MEETING (UNAUDITED)
A Meeting of Shareholders (the "Meeting") of Schroder U.S. Opportunities Fund
and Schroder International Alpha Fund, each a series of Schroder Capital Funds
(Delaware) (the "Trust") was held on March 23, 2006 at the offices of the Trust,
875 Third Avenue, New York, New York 10022. The matters voted upon by
Shareholders and the resulting votes are presented below:
PROPOSAL 1.
To approve or disapprove an amended and restated investment advisory agreement
between the Trust and Schroder Investment Management North America Inc. on
behalf of Schroder U.S. Opportunities Fund and Schroder International Alpha
Fund.
VOTES
For Against Abstain
------- ------- -------
Schroder International Alpha Fund 625,151 3,255 429
THE MEETING WAS ADJOURNED TO APRIL 30, 2006, AT WHICH TIME THE FOLLOWING
OUTSTANDING MATTERS WERE VOTED UPON BY SHAREHOLDERS AND THE RESULTING VOTES ARE
PRESENTED BELOW:
VOTES
For Against Abstain
------- ------- -------
Schroder U.S. Opportunities Fund 2,738,154 508,152 80,177
PROPOSAL 2.
To elect Trustees of the Trust.
VOTES
For Withhold
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U.S. U.S.
International Opportunities International Opportunities
Alpha Fund Fund Alpha Fund Fund
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Peter L. Clark 655,910 3,737,156 3,173 241,904
David N. Dinkins 655,910 3,722,468 3,173 256,592
Peter E. Guernsey 655,910 3,737,090 3,173 241,970
John I. Howell 655,910 3,734,463 3,173 244,597
Peter S. Knight 655,910 3,747,874 3,173 231,186
William L. Means 655,910 3,748,764 3,173 230,296
Clarence F. Michalis 655,910 3,746,718 3,173 232,342
Herman C. Schwab 655,910 3,732,968 3,173 246,092
James D. Vaughn 655,910 3,747,220 3,173 231,840
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92
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PRIVACY STATEMENT
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In the course of doing business with Schroders and the Schroder Mutual Funds,
you share nonpublic personal and financial information ("nonpublic personal
information") with us. Schroders respects your right to privacy. We understand
that you have entrusted us with this private information and we recognize the
importance of protecting unnecessary or unauthorized access to it.
I. INFORMATION THAT WE COLLECT
We may collect nonpublic personal information about you when you communicate or
transact business with us or with our service providers in writing,
electronically, or by telephone. For example, we collect nonpublic personal
information (such as name, address, account and other investment information)
about you from the following sources:
o Applications or forms completed by you; and
o Your transactions and account positions with us, our affiliates, or others
(including, for example, your own broker or custodian).
II. INFORMATION THAT WE DISCLOSE
We do not sell or rent your nonpublic personal information to any third parties.
We may disclose your nonpublic personal information to third parties in the
following limited circumstances:
o We may disclose some or all of your nonpublic personal information to
companies that help us maintain, process or service your transactions or
account(s) or financial products or services effected by or through us,
including companies that perform administrative, accounting, transfer
agency, custodial, brokerage or proxy solicitation services for us.
o We may disclose some or all of your nonpublic personal information, such as
account and transaction data, to companies which assist us in marketing or
client servicing. These companies will use this information only for the
services for which we hired them, are not permitted to use or share this
information for any other purpose and are required to protect the
confidentiality and security of this information.
o We may disclose or report some or all of your nonpublic personal information
if you request or authorize us to do so, for institutional risk control, or
in other circumstances where we believe in good faith that disclosure is
required or permitted under law.
III. OUR SECURITY PROCEDURES
We maintain physical, electronic, and procedural safeguards that comply with
federal standards to protect your non-public personal information. Within
Schroders, access to such information is limited to those employees who need it
to perform their jobs, such as servicing your accounts, resolving problems, or
informing you of new products or services. Finally, our Code of Ethics, which
applies to all employees, restricts the use of customer information and requires
that it be held in strict confidence.
We observe these policies with respect to current and former Schroders customers
and shareholders of the Schroder Mutual Funds.
If you identify any inaccuracy in your personal information or you need to make
a change to that information, please contact us in writing so that we may
promptly update our records.
This Privacy Policy applies to the Schroder Mutual Funds, Schroder Fund Advisors
Inc. and Schroder Investment Management North America Inc.
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[LOGO OMITTED] SCHRODERS
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INVESTMENT ADVISOR Schroder Investment Management North America Inc.
875 Third Avenue, 22nd Floor
New York, NY 10022
TRUSTEES Peter L. Clark (Chairman)
David N. Dinkins
Peter E. Guernsey
John I. Howell
Peter S. Knight
Catherine A. Mazza
William L. Means
Clarence F. Michalis
Hermann C. Schwab
James D. Vaughn
DISTRIBUTOR Schroder Fund Advisors Inc.
875 Third Avenue, 22nd Floor
New York, NY 10022
TRANSFER & SHAREHOLDER Boston Financial Data Services, Inc.
SERVICING AGENT
CUSTODIAN JP Morgan Chase Bank
COUNSEL Ropes & Gray LLP
INDEPENDENT REGISTERED PUBLIC PricewaterhouseCoopers LLP
ACCOUNTING FIRM
The information contained in this report is
intended for the general information of the
shareholders of the Trusts. This report is not
authorized for distribution to prospective
investors unless preceded or accompanied by a
current prospectus which contains important
information concerning the Trusts.
SCHRODER CAPITAL FUNDS (DELAWARE)
SCHRODER SERIES TRUST
SCHRODER GLOBAL SERIES TRUST
P.O. BOX 8507
BOSTON, MA 02266
(800) 464-3108
46973
[LOGO OMITTED] SCHRODERS
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded, based on their evaluation of the registrant's disclosure
controls and procedures as of a date within 90 days of the filing date of this
report on Form N-CSR, that the design and operation of such procedures are
effective to provide reasonable assurance that information required to be
disclosed by the investment company on Form N-CSR is recorded, processed,
summarized and reported within the time periods specified in the Commission's
rules and forms.
(b) There have been no changes in the registrant's internal control over
financial reporting during the period from February 1, 2006 through April 30,
2006 that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schroder Global Series Trust
By (Signature and Title)* /s/ Mark A. Hemenetz
--------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date June 27, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Mark A. Hemenetz
--------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date June 27, 2006
By (Signature and Title)* /s/ Alan M. Mandel
--------------------------------
Alan M. Mandel,
Treasurer and Chief Financial Officer
Date June 27, 2006
* Print the name and title of each signing officer under his or her signature.