UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM N-CSRS
--------
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)
--------
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, 2007
DATE OF REPORTING PERIOD: APRIL 30, 2007
ITEM 1. REPORTS TO STOCKHOLDERS.
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
APRIL 30, 2007 SEMI-ANNUAL REPORT
Schroder North American Equity Fund
Schroder International Diversified Value 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 Strategic Bond Fund
Schroder Total Return Fixed Income Fund
Schroder Municipal Bond Fund
Schroder Short-Term Municipal Bond Fund
[LOGO] SCHRODERS
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
May 18, 2007
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, 2007. 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.
The six months under review offered investors in most asset classes positive
returns, despite volatility in international equity markets and the particularly
sharp sell-off on February 27, 2007. Long-term fundamentals, however, remained
relatively favorable to equities as global interest rate levels overall stayed
fairly benign and valuations were not stretched. Investors, in turn, have
maintained a tolerance for risk -- as seen by the brevity of the market
correction at the beginning of this year, continued strong inflows to emerging
markets and a sell-off in government bonds -- although their risk appetite
appeared to grow a bit more tentative in the closing weeks of April, as
witnessed by the rally in U.S. Treasuries.
Among some of the key macro trends in the markets over the past six months:
Mergers and acquisitions activity stayed high while good global market
performance also drove up equity prices through April. However, the impact of
the U.S. housing market and the sub-prime lending market 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. The Eurozone is now firmly entrenched in the current global expansion
and is still being led primarily by a robust Germany, which has created over
half a million new jobs over the last year. The French, too, are joining the
action, reporting improved production statistics. The UK economy remains buoyant
with retail sales positive and the housing market showing no sign of significant
cooling. This has increased the likelihood of further interest rate rises this
year by the Bank of England.
A recent report by the French Institute for Statistics and Economic Studies has
suggested that, in contrast with the predicted U.S. slowdown, European companies
will continue to grow and expand over the coming months. With growth booming,
the European Central Bank (ECB) is sure to keep a close eye on inflation over
the coming months. The last time we saw comparable economic growth in the region
was in 2001 when inflation hit a peak of 2.5% -- and stayed there for over a
year.
Evidence has also emerged of a significant degree of de-coupling from the U.S.,
with demand both from within Europe and also the fast-growing Asian economies
helping offset the effects of a slowing U.S. economy. The appearance of this
de-coupling pattern is a significant development over the past six months. While
no one expects Europe to remain immune to an all-out U.S. recession, there are
in fact some trends that help explain Europe's performance against a sluggish
U.S. A study of changes in Eurozone export data over the last few years proves
illuminating. In 2001 exports to 'emerging' Europe and all of Asia ex-Japan
added together was just 1.6 times the volume of trade with the U.S. After 2003,
however, exports to both Asia and Eastern Europe became more important than
trade with the U.S. The most recent data shows that Eurozone exports to emerging
Europe -- including Russia and Turkey -- and Asia are now 2.6 times higher than
those to the U.S.
The consensus "soft landing" view of the U.S. economy was challenged recently as
attention focused on the problems in the sub-prime mortgage market. Concerns
mounted about rising homeowner defaults due to excessive leverage and poor
underwriting standards. On February 7, two of the three largest originators of
sub-prime mortgages, HSBC and NEW CENTURY FINANCE, announced significant losses
while other lenders in this field declared bankruptcy, raising the fear that the
problems in U.S. housing are far from over and that we could see wider effects
on the economy. These concerns were compounded by Alan Greenspan's comment that
there is a one in three chance of a recession in the U.S. this year.
- --------------------------------------------------------------------------------
1
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
We believe that the direct effects of the problems in sub-prime mortgages will
be to depress housing and consumer spending, but not significantly. The greater
worry is that we will see wider indirect effects if other parts of the economy
become affected. One route through which this could happen is via a credit
crunch where financial institutions tighten their lending standards, or even
withdraw credit to borrowers in response to sub-prime losses.
While the Federal Reserve (the "Fed") has acknowledged that the economy is
slowing, it has offered little hint that it is ready to lower interest rates
anytime soon. While it has kept the benchmark interest rate at 5.25% -- the same
level it has been since the Fed began its "pause" almost a year ago -- the Fed
has also reiterated its basic stance of the last year, saying that inflation
remains a bigger worry at the moment than slowing economic growth.
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 MANAGEMENT TEAM AS OF THE DATE SPECIFIED, AND MAY NOT REFLECT THE
VIEWS OF THE PORTFOLIO MANAGERS ON THE DATE THIS SEMI-ANNUAL REPORT IS 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, 2007.
- --------------------------------------------------------------------------------
2
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder North American Equity Fund
(the "Fund") rose 8.01% (Investor Shares) and 7.85% (Advisor Shares) compared to
the FTSE North American Index (the "Index"), a broad-based basket of North
American stocks, which rose 8.88%. For the same six-month period, the S&P 500
Index increased by 8.60%.
MARKET BACKGROUND
North American equities produced high single-digit returns in the review period.
Although the period was volatile -- U.S. housing market jitters created a
turbulent few weeks in February -- the background of a gentle deceleration in
U.S. economic growth, exceptionally strong mergers and acquisitions activity and
robust corporate profit growth helped maintain positive sentiment overall.
Among the strongest performers at a sector level were utilities, materials and
energy stocks. Consumer discretionary and financial stocks were comparatively
weak, reflecting the somewhat uncertain outlook for U.S. consumer spending and
the problems in the sub-prime mortgage sector. Technology stocks also performed
relatively poorly, in part as a result of some high-profile earnings
disappointments.
PORTFOLIO REVIEW
The Fund's portfolio consists of numerous small stock positions diversified
across sectors and industries. The Fund's exposure to risky, high volatility
stocks was steadily reduced during the six-month period ended April 30, and the
proceeds were invested in high quality stocks (companies with good profitability
and stability of earnings) which we believed offered good value. Healthcare
companies, including pharmaceuticals and healthcare equipment stocks, have
become interesting recently; following relatively poor performance over the past
few months, we feel that these companies provide good portfolio diversification.
The Fund's emphasis on stocks with perceived good value and high quality yielded
mixed results in the review period. Holdings in the technology services
industry, such as AVNET and FIRST DATA, contributed to performance while the
Fund's avoidance of SUN MICROSYSTEMS -- which we rated as having poor quality
with low profitability and stability -- also added positively to performance.
The Fund's holdings in attractively valued materials stocks such as SOUTHERN
COPPER and PHELPS DODGE, a recent acquisition target, also added value.
Performance was behind the benchmark in the utilities sector, however, where
expensive multi-utility stocks such as DOMINION RESOURCES continued to perform
well despite what we viewed as unfavorable valuations which motivated our
underweight stance. In the consumer staples sector, not owning large-cap food
retailers KROGER, SUPERVALU and SAFEWAY detracted from performance and our
underweight positions in aerospace and defense companies HONEYWELL INTERNATIONAL
and PRECISION CASTPARTS proved detrimental within the industrials sector.
OUTLOOK
Consensus expectations for a mild slowdown in the U.S. economy, strong corporate
profits growth and rampant mergers and acquisitions activity are helping to
maintain positive sentiment among investors. The brevity of the market
correction at the beginning of this year serves to underline the extent to which
investors remain willing to accept risk. By investing in stocks offering good
value, high quality and positive momentum, we believe that the Fund is well
positioned to outperform its benchmark in most major market environment.
- --------------------------------------------------------------------------------
3
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2007 Inception
-------------- ----------
Schroder North American Equity Fund --
Investor Shares ........................... 13.68% 13.30%(a)
Advisor Shares ............................ 13.33% 12.95%(b)
(a) The Investor Shares commenced operations on September 17, 2003.
(b) The Advisor Shares commenced operations on March 31, 2006. The performance
information provided in the performance information table for periods
prior to March 31, 2006 reflects the performance of the Investor Shares of
the Fund, adjusted to reflect the distribution fees paid by Advisor
Shares.
"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
- ----------------------------------------------------------
Exxon Mobil 3.0%
General Electric 2.4
Microsoft 2.0
Citigroup 1.9
AT&T 1.5
*Excludes any Short-Term Investments.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ----------------------------------------------------------
Manufacturing 41.5%
Finance, Insurance and Real Estate 23.7
Transportation, Communications,
Electric, Gas and Sanitary Services 9.8
Services 8.0
Retail Trade 6.3
Mining 4.4
Wholesale Trade 3.1
Construction 0.3
Short-Term Investment 2.9
- --------------------------------------------------------------------------------
4
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder International Diversified
Value Fund (the "Fund") rose 20.47% (Investor Shares) and 20.42% (Advisor
Shares) compared to the Morgan Stanley Capital International EAFE Index (the
"Index"), a broad-based basket of international stocks, which rose 15.46% during
this same period.
MARKET BACKGROUND
Global equity markets finished the period strongly following a volatile
February, helped by a better-than-expected earnings season. The background of a
gentle deceleration in U.S. economic growth and persisting mergers and
acquisitions ("M&A") activity helped maintain positive sentiment globally.
Regionally, the Pacific (ex-Japan) and Europe were particularly strong during
the period, while Japan continued to lag. All sectors within the Index generated
positive returns.
PORTFOLIO REVIEW
For the six-month period under review, the Fund strongly outperformed the Index.
Major contributors to performance came from gains diversified across a number of
sectors including industrials, financial, and materials.
The persistently high levels of M&A activity helped drive performance in the
industrials sector. The Fund's holdings in marine companies were strong
contributors to performance toward the end of the reporting period, with Asian
shipping companies ORIENT OVERSEAS INTERNATIONAL and DRYSHIPS continuing to
benefit from a strong export environment.
Value opportunities in emerging markets, particularly in the emerging Asian
metals and mining industry, also contributed heavily to Fund performance,
particularly toward the end of 2006. Country weightings within the Fund are
driven by bottom-up decisions, and China was a good source of Value with telecom
stocks including CHINA NETCOM GROUP (as utilized by the Fund, "Value" is a
complex statistical analysis that determines whether a stock is cheap or
expensive). As the first quarter of 2007 wound down, emerging markets were
offering little relative Value after a run of good performance.
The Fund's holdings in the European consumer discretionary company ELECTROLUX,
the Swedish home appliance supplier, as well as VOLKSWAGEN, did very well, the
latter boosted by stake building from PORSCHE.
The major detractor from Fund performance over the six-month period was the
result of a proposal in Canada to tax publicly traded income trusts as ordinary
corporations. The proposal was a surprise to the market and hurt the Fund's
holdings in some Canadian entities.
OUTLOOK
Consensus expectations for a steady deceleration in the U.S. economy, strong
corporate profit growth and rampant M&A activity are helping to maintain
positive sentiment among investors. The brevity of the market correction at the
beginning of this year serves to underline the extent to which investors remain
willing to accept risk. We do not attempt to predict the market's next move but,
rather, position the Fund to deliver superior long-term returns. Through our
research, we believe that this can be achieved with a long-run Value bias,
together with a unique, non-market cap approach to stock weighting and
unconstrained, bottom-up sector and country weights.
- --------------------------------------------------------------------------------
5
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
Inception to
April 30, 2007
--------------
Schroder International Diversified Value Fund (a) --
Investor Shares ....................................... 26.98%
Advisor Shares ........................................ 26.80%
(a) Cumulative total return from commencement of Fund operations (August 30,
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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
Societe Generale 0.5%
Dexia 0.5
CNP Assurances 0.5
Casino Guichard-Perrachon 0.4
Intesa Sanpaolo 0.4
*Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
- ----------------------------------------------------------
% of Investments
Continental Europe 43.8% [PIE CHART OMITTED]
Japan 13.1
United Kingdom 13.0
Pacific ex-Japan 10.3
Emerging Markets 10.0
North America 7.5
Short-Term Investment 2.3
- --------------------------------------------------------------------------------
6
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder U.S. Opportunities Fund
(the "Fund") rose 11.00% (Investor Shares) and 10.87% (Advisor Shares) compared
to the Russell 2000 Index (the "Index"), a broad-based basket of stocks with
characteristics similar to the Fund's portfolio, which rose 6.86%.
The Fund's outperformance of the Index was driven by strong stock selection. In
particular, stock selection in the materials and processing, financial services
and consumer discretionary sectors contributed to performance. Stock selection
within the consumer staples sector was the only detractor from 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 the Federal
Reserve held interest rates steady at 5.25% and overall economic and market
conditions -- such as high liquidity and the growing expectation of a soft
landing in the U.S. economy -- were favorable for investors.
PORTFOLIO REVIEW
During the six-month period, the Fund performed well, with particularly good
performance from our allocation to the financial services and technology
sectors. Strong contributors to outperformance were PERINI (a construction
services company) and DRESSER-RAND GROUP (supplies equipment and conversion
solutions for the energy industry), both of which announced strong quarterly
results and gave positive guidance for 2007. A technology stock that performed
particularly well was INFRASOURCE SERVICES (an electric infrastructure
contractor), as the company was acquired.
Within financial services, the Fund's holding in CONSECO hurt relative
performance the most. In technology, SONICWALL, a provider of internet security
options, was the largest detractor during the six-month period. CONSECO
announced weaker than expected earnings after investment losses tripled over the
period and expenses grew significantly while SONICWALL suffered a steep share
price decline in large part due to a sell-side analyst raising concerns that the
company could miss earnings expectations because of a slowdown in its core
small- and medium-business segment.
OUTLOOK
We believe that U.S. economic growth will continue along at a slower rate over
the rest of the year, reflecting a rise in the household savings rate and a
moderation in retail sales growth. This slowdown should limit inflation risk. At
the same time, business investment spending and exports should remain healthy.
We anticipate a soft landing in the economy, which should be positive for equity
markets. Interest rates are expected to hold steady, market liquidity is high,
valuations are reasonable and there is ample credit available. We have, however,
seen a prolonged period of strong profits growth and we anticipate a decline in
the level of earnings growth in 2007. 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 securities.
- --------------------------------------------------------------------------------
7
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2007 April 30, 2007 April 30, 2007
-------------- ---------------- ---------------
Schroder U.S. Opportunities Fund (a)(b) --
Investor Shares .......................... 12.81% 13.48%(c) 14.02%(c)
Advisor Shares ........................... 12.53%(d) 13.21%(c)(d) 13.74%(c)(d)
(a) The portfolio manager primarily responsible for making investment
decisions for the Fund assumed this responsibility effective January 2,
2003. The performance results for periods prior to January 2, 2003 were
achieved by the Fund under a different portfolio manager.
(b) Effective May 1, 2006, the combined advisory and administrative fees of
the Fund increased to 1.00% per annum. If the Fund had paid such higher
fees during prior periods, the returns of the Fund would have been lower.
(c) Average annual total return.
(d) The Advisor Shares commenced operations on May 15, 2006. The performance
information provided in the performance information table for periods
prior to May 15, 2006 reflects the performance of the Investor Shares of
the Fund, adjusted to reflect the distribution fees paid by Advisor
Shares.
"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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND/OR REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
iShares Russell 2000 Index Fund 2.4%
Scientific Games Class A 2.0
Dresser-Rand Group 1.7
Emulex 1.6
Reinsurance Group of America 1.5
*Excludes any Short-Term Investments.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ----------------------------------------------------------
Consumer Discretionary 17.2%
Financial Services 16.6
Technology 15.6
Health Care 11.6
Materials & Processing 8.9
Other Energy 5.8
Producer Durables 4.4
Auto & Transportation 3.4
Utilities 3.0
Other 0.6
Consumer Staples 0.4
Short-Term Investment 12.5
- --------------------------------------------------------------------------------
8
- --------------------------------------------------------------------------------
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder U.S. Small and Mid Cap
Opportunities Fund (the "Fund") rose 10.89% (Investor Shares) and 10.95%
(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 10.17%.
The Fund's outperformance of the Index was driven by strong stock selection. In
particular, stock selection in the financial services and materials and
processing sectors contributed to performance. Stock selection within the
consumer staples and healthcare sectors detracted from relative performance
during the six-month period.
MARKET BACKGROUND
Overall, U.S. small and mid caps performed strongly during the six-month period
under review. The Federal Reserve held interest rates steady at 5.25% and
overall economic and market conditions -- such as high liquidity and the growing
expectation of a soft landing in the U.S. economy -- were favorable for
investors.
PORTFOLIO REVIEW
During the period under review, the Fund benefited from particularly good
allocation to the financial services and energy sectors. The Fund's allocation
to the consumer staples sector was the most significant detractor from relative
performance over the reporting period.
The most positive contributors were DRESSER-RAND GROUP (a supplier of equipment
solutions to the oil and gas industries), which announced strong fourth quarter
results and gave positive earnings guidance, and Canadian steel supplier IPSCO,
which was recently purchased by Swedish steel company SSAB SVENSKT STAL AB. The
most significant detractors were BARR PHARMACEUTICALS (a generic pharmaceutical
products manufacturer), which declined when the company announced that
profitability from an acquisition would be pushed out and, in the consumer
discretionary sector, CONSTELLATION BRANDS (a producer and marketer of wine,
beer and spirits), which lowered both 2007 and 2008 earnings guidance.
OUTLOOK
We believe that U.S. economic growth will continue along at a slower rate over
the rest of the year, reflecting a rise in the household savings rate and a
moderation in retail sales growth. This slowdown should limit inflation risk. At
the same time, business investment spending and exports should remain healthy.
We anticipate a soft landing in the economy, which should be positive for equity
markets. Interest rates are expected to remain steady, market liquidity is high,
valuations are reasonable and there is ample credit available. We have, however,
seen a prolonged period of strong profits growth and we anticipate a decline in
the level of earnings growth in 2007. 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 securities.
- --------------------------------------------------------------------------------
9
- --------------------------------------------------------------------------------
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2007 Inception(a)
-------------- ------------
Schroder U.S. Small and Mid Cap Opportunities Fund --
Investor Shares .................................. 12.09% 12.55%
Advisor Shares ................................... 11.93% 12.40%
(a) From commencement of Fund operations on March 31, 2006.
"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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
VeriSign 3.0%
Dresser-Rand Group 2.9
Amdocs 2.8
Emulex 2.6
Reinsurance Group of America 2.5
*Excludes any Short-Term Investments.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ----------------------------------------------------------
Technology 16.1%
Consumer Discretionary 15.1
Health Care 14.3
Financial Services 12.1
Other Energy 9.5
Materials & Processing 9.0
Utilities 6.1
Producer Durables 4.5
Auto & Transportation 1.9
Consumer Staples 1.1
Other 0.5
Short-Term Investment 9.8
- --------------------------------------------------------------------------------
10
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL ALPHA FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder International Alpha Fund
(the "Fund") rose 12.60% (Investor Shares) and 12.43% (Advisor Shares) compared
to the Morgan Stanley Capital International EAFE Index (the "Index"), a
broad-based basket of international stocks, which rose 15.46%.
During the period, the Fund's returns were strongest in emerging markets and the
Pacific region excluding Japan. The Fund also benefited from having a limited
exposure to Japan, which continued to lag returns from the rest of the world
during the six months ended April 30. Meanwhile, Continental Europe detracted
most from a regional perspective.
MARKET BACKGROUND
International equity markets moved higher over the past six months. Volatility
increased, however, as a result of concerns over the U.S. sub-prime segment, the
potential impact on global liquidity and the possible unwinding of the Yen carry
trade. Nevertheless, liquidity flows and corporate activity stayed strong and,
towards the end of the period, market sentiment turned. Despite the volatility
during the first quarter in particular, quality was largely ignored as markets
focused most on increasingly large mergers and acquisitions (M&A) deals.
PORTFOLIO REVIEW
From a regional perspective, our underweight in Japan and holdings in emerging
markets contributed most positively to performance. Our selection of stocks in
the energy sector, including SBM OFFSHORE and NIKO RESOURCES, was most
beneficial to overall returns. Other sectors that added value were
telecommunications, such as our holdings in CHINA UNICOM and SINGAPORE
TELECOMMUNICATIONS, and industrials, including DAEWOO SHIPBUILDING & MARINE
ENGINEERING, EBARA and SIEMENS.
DAEWOO SHIPBUILDING & MARINE ENGINEERING won a number of large contracts during
the period and enjoyed strong demand for oil-and-gas-related vessels such as
liquefied natural gas carriers. Energy equipment company SBM OFFSHORE is also
seeing its order backlog grow to record levels as the currently strong rig
construction phase shows no sign of abating any time soon. Meanwhile, in other
areas, companies such as SINGAPORE TELECOMMUNICATIONS enjoyed substantial
increases in new subscribers, especially in rapidly growing emerging markets
such as India.
OUTLOOK
We believe that long-term fundamentals remain positive for international equity
markets despite the recent increase in volatility. U.S. economic growth is in
the natural process of moderating, with inflation remaining under control. While
the sub-prime market segment has deteriorated, consumer spending has proven
resilient. We anticipate, therefore, that the U.S. economy will avoid recession
while overall conditions in Europe, the Pacific region and emerging markets will
remain reasonably healthy. We also believe that fundamentals are still
supportive for China and that it will continue to be one of the key driving
forces for demand for resources for consumer and capital goods globally --
thereby supporting many developing countries.
One of the key risks, in our opinion, is an unanticipated shift in global
liquidity. While interest rates remain benign in historical terms, any
tightening in excess of what is already expected in the market could prove
detrimental to currently favorable liquidity conditions. We expect, however,
that markets can adjust to further gradual and anticipated increases to interest
rates, particularly in Europe.
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.
- --------------------------------------------------------------------------------
11
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL ALPHA FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2007 April 30, 2007 April 30, 2007
-------------- ---------------- ---------------
Schroder International Alpha Fund (a) --
Investor Shares .................................. 17.11% 13.77%(b) 7.69%(b)
Advisor Shares ................................... 16.93%(c) 13.53%(b)(c) 7.43%(b)(c)
(a) Effective April 1, 2006, the combined advisory and administrative fees of
the Fund increased to 0.975% per annum. If the Fund had paid such higher
fees during prior periods, the returns of the Fund would have been lower.
(b) Average annual total return.
(c) The Advisor Shares commenced operations on May 15, 2006. The performance
information provided in the line graph and the performance information
table for periods prior to May 15, 2006 reflects the performance of the
Investor Shares of the Fund, adjusted to reflect the distribution fees
paid by Advisor Shares.
"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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
Rio Tinto 3.1%
China Unicom 2.8
Nestle 2.7
BG Group 2.7
SABMiller 2.6
*Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
- ----------------------------------------------------------
% of Investments
Continental Europe 35.1% [PIE CHART OMITTED]
United Kingdom 24.9
Japan 13.5
Emerging Markets 13.4
Pacific ex-Japan 6.7
North America 3.7
Short-Term Investment 2.7
- --------------------------------------------------------------------------------
12
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ending April 30, 2007, the Schroder Emerging Market Equity
Fund (the "Fund") rose 18.23% (Investor Shares) and 18.09% (Advisor Shares),
compared to the Morgan Stanley Capital International Emerging Markets Index (the
"Index"), a broad-based basket of international stocks, which rose 20.11%.
MARKET BACKGROUND
Global emerging markets generally posted strong returns over what was a volatile
six-month period, helped by rising oil and commodity prices, robust investor
inflows and interest rate stability in markets such as Peru. However, concerns
about the U.S. economy coupled with U.S. dollar weakness and fears about high
valuations led to a sharp sell off, before an easing of these concerns saw some
recovery.
As the six months drew to a close, Peru emerged as the strongest performer, with
recent copper price strength providing support for this commodity-driven market.
The Chilean market also outperformed as data was released showing a strong rise
in the government's budget surplus in the first quarter of this year. Hungary
was one of the best performers among the Europe, Middle East and Africa ("EMEA")
markets, with U.S. dollar returns from this market enhanced by local currency
appreciation. Poland posted equally strong returns. In Asia, the Malaysian
market delivered the strongest return, realizing a 46.5% gain over the six-month
period. Russia was one of the weakest performing emerging markets despite a
strong oil price rally in the latter part of the month.
PORTFOLIO REVIEW
The Fund underperformed its benchmark Index during the six months under review.
The Fund's country selection was negative but stock selection was positive. The
Fund's overweight to Russia and country allocation to Thailand, during what was
a very volatile period for the Thai market, were the largest negative
contributors to performance. Stock selection in Brazil, Argentina, and China,
however, added value. This was partially offset by stock selection in Korea,
which detracted somewhat from performance.
Brazil is the Fund's largest overweight due to attractive valuations and
declining interest rates. The Fund is also overweight Thailand, attracted by an
improving economic outlook and more political certainty. Russia remains the
largest overweight market in the EMEA region with the economy continuing to
perform very strongly, driven by strong levels of investment and consumer
spending. The Fund is also overweight Egypt and Hungary. India and South Africa
are our largest underweight positions and we also remain underweight Taiwan.
OUTLOOK
The outlook for global emerging markets continues to be positive, in our view.
Emerging market growth is holding up well against a backdrop of slowing growth
for the global economy. Liquidity remains strong, supporting interest in asset
classes like emerging markets. Emerging markets should be able to sustain
stronger growth due to intra-regional and domestic demand against a backdrop of
huge structural improvements. The emerging economies are also experiencing a
shift in the balance of growth towards domestic demand and are likely to
continue to deliver growth well above that of developed markets. This strength
of the emerging economies, which have become less reliant on U.S. growth, is
supporting markets, while valuations are, broadly speaking, not expensive and
earnings growth is generally solid.
We expect to maintain the Fund's 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 can pay off as we anticipate that fundamentals, rather than momentum,
will become the key performance drivers.
- --------------------------------------------------------------------------------
13
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2007 Inception(a)
-------------- ------------
Schroder Emerging Market Equity Fund --
Investor Shares .................................. 17.46% 22.63%
Advisor Shares ................................... 17.20% 22.28%
(a) From commencement of Fund operations on March 31, 2006.
"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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
OAO Gazprom ADR 3.4%
Samsung Electronics GDR 2.8
Petroleo Brasileiro ADR 2.7
LUKOIL ADR 2.6
Taiwan Semiconductor Manufacturing ADR 2.6
*Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
- ----------------------------------------------------------
% of Investments
Asia/Far East 47.6% [PIE CHART OMITTED]
Latin America 20.6
Europe 19.5
Africa 5.7
Mid-East 2.2
Supranational 0.9
Short-Term Investment 3.5
- --------------------------------------------------------------------------------
14
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder Enhanced Income Fund (the
"Fund") rose 2.18% (Investor Shares) and 2.05% (Advisor Shares) compared to the
LIBOR 3-Month USD Fixed Index (the "Index"), a widely used measure of short-term
debt returns, which rose 2.62%.
MARKET BACKGROUND
3-month Treasury yields rose from 4.89% to 5.01% and 3-month LIBOR was virtually
unchanged at 5.36% through the quarter. Economic data released in December was
quite tame, reflecting modest growth and declining inflationary pressures.
Although December's numbers were stronger than in the first part of the quarter,
inflation was not soft enough to confirm hopes of an imminent easing of monetary
policy. Short-term interest rates were exceptionally stable in the fourth
quarter.
U.S. bond prices began 2007 on a weak note as strong economic data in January
reduced the possibility of a Federal Reserve (the "Fed") rate cut this year. By
mid-February, steadily rising energy prices added to concerns about the
sustainability of consumer spending and began to reduce investors' expectations
for economic growth. Risk aversion in general increased on February 27 when
share prices on the Shanghai stock exchange dropped by 9% in one day. Global
equity prices plunged, swap spreads widened, and U.S. Treasuries rallied sharply
as fears of unwinding trades, especially Yen carry trades, spooked financial
markets. By mid-March markets had stabilized and began to recover, although
lower rated sectors fell farther at the outset and were slower to recover. The
slowdown in U.S. housing has yet to spill over into the overall economy -- an
important factor for risk sectors. Good employment and wage gains offset much of
the drag from housing, while the fragility of the housing market counterbalanced
firmer price indicators. With the Fed not likely to change rates and upset this
balance, liquidity remained freely available.
The most important event for the Fund in the first quarter was rising disorder
among originators of sub-prime mortgages. Concerns had been mounting about
rising homeowner defaults due to excessive leverage and poor underwriting
standards. On February 7, two of the three largest originators of sub-prime
mortgages, HSBC and NEW CENTURY FINANCE, announced significant losses. Negative
headlines in the sector throughout the quarter reduced demand, even for strongly
supported securities associated with sub-prime loans, causing yield spreads to
widen.
PORTFOLIO REVIEW
Overall performance trailed the Index during the six-month reporting period. In
the fourth quarter of 2006, as our concerns over the U.S. housing market
increased, we reduced our exposure in the credit sector. Our remaining holdings
suffered a mark-to-market depreciation to account for heightened concerns about
credit risks. Portfolio credit quality has been upgraded significantly in the
last several months and was not materially hurt by further declines in the
market for lower-rated sub-prime securities. Portfolio duration has been stable
between 0.4 and 0.5 years. Duration did not contribute to returns due to the
inverted yield curve; however portfolios have benefited from falling interest
rates during the period.
OUTLOOK
Because of stable Fed policy and the inverted yield curve, our strategy is
squarely centered on security selection within the highest rated investment
areas. The risk of a more substantial drop in home prices does not make
extending into lower-rated securities an appropriate strategy for the Fund. In
fact, the Fund currently owns about 95% in AAA-rated bonds and another 2% in
AA-rated bonds. Spreads on single-A securities are near the widest levels ever
seen, including during the 2001 recession, and we do not expect further spread
widening from these levels. Volatility has subsided in much of the financial
markets, but it is too soon to return to riskier positions.
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.
- --------------------------------------------------------------------------------
15
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2007 Inception(a)
-------------- ------------
Schroder Enhanced Income Fund --
Investor Shares .................................. 4.73% 3.88%
Advisor Shares ................................... 4.47% 3.61%
(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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
Citicorp 5.270%, 5/14/07 4.7%
FHLMC 5.191%, 8/01/34 4.5
FNMA 7.488%, 7/01/36 4.4
American General Finance
5.226%, 5/01/07 4.3
Toyota Motor Credit
5.256%, 5/03/07 4.3
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ----------------------------------------------------------
Collateralized Mortgage Obligations 40.4%
Commercial Paper 21.7
Mortgage-Backed Obligations 15.1
U.S. Government Mortgage-
Backed Obligations 14.9
Asset-Backed Securities 3.5
Corporate Obligations 1.2
Short-Term Investment 3.2
- --------------------------------------------------------------------------------
16
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder Strategic Bond Fund (the
"Fund") rose 3.16% (Investor Shares) and 3.14% (Advisor Shares) compared to the
Lehman U.S. Aggregate Bond Index (the "Index"), a broad-based basket of U.S.
debt securities, which rose 2.63%. As a further measure of comparison, the LIBOR
3-Month USD Fixed Index, a widely used measure of short-term debt returns, rose
2.62%.
MARKET BACKGROUND
One of the best-performing sectors in fixed income during the six months under
review was high yield -- investors continued to seek ways to maximize their
returns and were given confidence to buy this asset class by the very supportive
economic environment. However, returns on government bonds and investment grade
corporate securities came under pressure from rising interest rates and
accelerating inflation. Bonds that offered investors enhanced coupon-payment
protection, such as mortgage-backed or asset-backed securities, performed better
in this environment.
PORTFOLIO REVIEW
During the six-month period under review the Fund's overall duration increased
from 0.3 to 2.6 years -- nevertheless staying within a defensive range. The
duration increase was achieved through adding long positions in Europe and Japan
and increasing the Fund's exposure to mortgage-backed securities ("MBS") while
maintaining short positions in the U.S. in two- and five-year Treasuries. The
Fund managers kept some exposure to riskier markets, increasing high yield
allocation and selective positions in emerging market debt ("EMD") and the
corporate market.
Contributions to performance during the period came from a number of sources,
including the Fund's duration positioning and its allocation to U.S. MBS and
high yield bonds. Toward the end of the period, the Fund was short in its U.S.
and Eurozone exposure with a neutral position in the UK and a slight long in
emerging markets. Exposure to MBS was reduced from about 33% to about 20% while
exposure to high yield corporate debt stayed constant.
OUTLOOK
Global bond markets continue to be dominated by high levels of liquidity,
driving yields lower and suppressing volatility. Economic data indicates that
the U.S. is desynchronizing from the rest of the world, and we believe that this
will continue. This means that it is likely that the Federal Reserve will cut
interest rates later this year, while strong growth in the Eurozone and the UK
should see further tightening from the European Central Bank and the Bank of
England, respectively.
Japan remains our most favored bond market to take duration. Low inflation in
Japan means that the Bank of Japan is likely to leave rates on hold. In the
corporate sector, we remain focused on bottom-up security selection.
We believe that the Fund's benchmark-agnostic, total return investment approach
will allow us to focus on flexible, best-ideas investment in a broad geographic
range of markets and sectors. When combined with a risk management mentality
that diversifies investments across a range of strategies, we believe that the
Fund is well positioned to perform well in the current economic environment.
- --------------------------------------------------------------------------------
17
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
Inception to
April 30, 2007
--------------
Schroder Strategic Bond Fund (a) --
Investor Shares .................................. 4.48%
Advisor Shares ................................... 4.30%
(a) Cumulative total return from commencement of Fund operations (June 30,
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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
U.S. Treasury Bill
5.099%, 5/03/07 14.4%
Japan Series 282
1.700%, 9/20/16 12.0
FNMA TBA
5.000%, 5/25/22 10.4
FHLMC Gold TBA
6.000%, 5/15/37 9.0
FHLMC Gold TBA
5.500%, 5/15/37 6.9
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ----------------------------------------------------------
U.S. Government Mortgage-
Backed Obligations 30.6%
U.S. Treasury Obligations 28.1
Foreign Bonds 22.5
Corporate Obligations 14.5
Mortgage-Backed Obligations 0.6
Short-Term Investment 3.7
- --------------------------------------------------------------------------------
18
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
During the six months ended April 30, 2007, the Schroder Total Return Fixed
Income Fund (the "Fund") rose 2.83% (Investor Shares) and 2.70% (Advisor
Shares), compared to the Lehman U.S. Aggregate Bond Index (the "Index"), a
broad-based basket of U.S. debt securities, which rose 2.63%.
MARKET BACKGROUND
Bond market returns were positive in the fourth quarter but not as strong as
during the first two months of the period. The Index returned 1.24% in the
fourth quarter after posting a total gain of 1.83% in October and November.
Interest rates in December retraced declines and finished the quarter 0.05% to
0.15% higher. Economic data released in December was quite tame, reflecting
modest growth and declining inflationary pressures. Although December's numbers
were stronger than in the first part of the quarter, inflation was not soft
enough to confirm hopes of an imminent easing of monetary policy.
Credit and mortgage sectors continued to perform very strongly. The Lehman
corporate component posted excess return of 0.63%, while mortgages and
asset-backeds had excess returns of 0.59% and 0.23%, respectively. Within
corporates, lower rated sectors had the highest excess returns (0.78% for BBB,
compared to 0.33% for AAA), reflecting ongoing demand from investors for higher
yielding investments and relatively few negative credit events during the month.
U.S. bond prices began 2007 on a weak note as strong economic data in January
reduced the possibility of a Federal Reserve (the "Fed") rate cut this year. By
mid-February, steadily rising energy prices added to concerns about the
sustainability of consumer spending and began to reduce investors' expectations
for economic growth. Risk aversion in general increased on February 27 when
share prices on the Shanghai stock exchange dropped by 9% in one day. Global
equity prices plunged, swap spreads widened, and U.S. Treasuries rallied sharply
as fears of unwinding trades, especially Yen carry trades, spooked financial
markets. By mid-March markets had stabilized and began to recover, although
lower rated sectors fell farther at the outset and were slower to recover. The
slowdown in U.S. housing has yet to spill over into the overall economy -- an
important factor for risk sectors. Good employment and wage gains offset much of
the drag from housing, while the fragility of the housing market counterbalanced
firmer price indicators. With the Fed not likely to change rates and upset this
balance, liquidity remained freely available.
PORTFOLIO REVIEW
The Fund outperformed the benchmark during the six-month period. During the
first quarter of 2007, the Fund sharply reduced credit quality and risk to
preserve gains from an overweight to corporate bonds toward the end of 2006.
Importantly, much of the corporate reduction came from cutting lower rated
(triple-B) issuers prior to the spike in risk aversion and accompanying spread
widening toward the end of February. Through March, corporate and mortgage
exposure remained in line with the benchmark and the corporate sector benefited
from security selection. Portfolio duration started the year with a 0.2-year
long, which subtracted from returns. The position was offset, however, by a 5.5%
long position in 10-year Japanese government bonds (currency hedged), which
added to returns as prices rose in January. February portfolio duration was
0.125 to 0.25 years longer than the benchmark and contributed to returns while
an underweight of the 2-year maturity sector in favor of 5- and 10-year
maturities subtracted from returns as the 2-year outperformed during the flight
to quality. Following the Treasury rally, duration was cut in March from 0.125
to neutral.
OUTLOOK
Volatility has receded quickly, no doubt due in large part to the huge amounts
of investment liquidity looking for a home and the absence of a large economic
or monetary shock to upset risk taking. To the contrary, markets' quick recovery
in February/March and the increasing likelihood of a soft landing for the
economy reinforces investor risk taking and swap/credit spreads will most likely
grind tighter without an obvious catalyst on the horizon to cause profit taking.
We cautiously added risk back to portfolios during the first quarter of 2007.
Specifically, we used the new-issue market to add to corporate holdings,
particularly in 30-year corporates where credit spread curves steepened and
which benefited from Treasury curve steepening. We also added to mortgage-backed
securities.
Inflation indicators have recently been very firm and Treasury Inflation
Protected Securities ("TIPS") should benefit from the combination of favorable
inflation numbers, strong gasoline prices and a higher homeowners' equivalent
rent component of the Consumer Price Index as rental demand increases due to
weak home prices.
- --------------------------------------------------------------------------------
19
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2007 Inception (a)
-------------- -------------
Schroder Total Return Fixed Income Fund --
Investor Shares ......................... 7.03% 3.96%
Advisor Shares .......................... 6.76% 3.67%
(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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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
- ----------------------------------------------------------
U.S. Treasury Bill
4.880%, 5/03/07 13.6%
Citicorp
5.281%, 5/14/07 8.5
FHLMC Gold TBA
6.000%, 5/15/37 6.4
FNMA TBA
5.000%, 5/25/22 5.5
FHLMC Gold
5.500%, 12/01/34 5.2
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ----------------------------------------------------------
U.S. Government Mortgage-Backed
Obligations 29.8%
U.S. Treasury Obligations 25.6
Corporate Obligations 20.4
Commercial Paper 8.5
Collateralized Mortgage Obligations 7.6
Mortgage-Backed Obligations 4.0
Asset-Backed Securities 0.8
Short-Term Investment 3.3
- --------------------------------------------------------------------------------
20
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder Municipal Bond Fund (the
"Fund") rose 1.70% (Investor Shares) and 1.58% (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 1.29%.
We believe the Fund's outperformance of its benchmark was largely due to its
holdings in high-quality securities, which generated a higher level of yield and
income than the Index. The municipal bond market underperformed the taxable
markets during the six-month period. The Lehman Municipal Bond Index (which
contains tax-exempt municipal bonds with maturities across the yield curve)
returned 1.59% for the six-month period while the Lehman U.S. Aggregate Bond
Index (comprised of taxable securities) returned 2.63% for the period.
MARKET BACKGROUND
The bond market remained steady over the last six months as the Federal Reserve
held the Fed funds rate constant at 5.25%. Economic news was mixed over the
period and the market responded daily to updates. However, at the close of the
six-month period ending April 30, yields were essentially in line with where
they had started.
Over the six months, rates across the Treasury curve fell slightly on the short
end and rose at the long end. The yield on the 2-year Treasury fell by 0.10% --
from 4.69% to 4.59% during the reporting period. The yield on the 10-year
Treasury rose by 0.02% from 4.60% to 4.62%. On the long end of the yield curve,
the 30-year Treasury yield increased from 4.72% to 4.81%, or 0.09% during the
same time period.
The yield on a 2-year AAA-rated municipal bond rose 0.10% -- from 3.50% to
3.60%. The AAA-rated yield on a 30-year municipal bond fluctuated during the
period, but ended relatively flat with a 4.23% yield.
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 of the Fund's focus on credit enhancement through selecting
issues we believe to have high credit quality was its purchase of a KALAMAZOO,
MICHIGAN HOSPITAL tax-exempt bond with an effective maturity of March 2012 due
to a sinking fund schedule. The Fund purchased the bond at a 4.14% tax-free
yield. The bond has been escrowed to maturity and is backed by U.S. government
securities. The yield on a AAA-rated municipal bond available in the market on
the same day as the Michigan purchase was 3.63%, according to the Bloomberg
national municipal scale. This is typical of the bonds the Fund holds -- many
are secured by third-party guarantees through insurance, a corporate guaranty,
underlying mortgages, a bank letter of credit, U.S. Treasuries or a federal
government agency.
One bond that underperformed during the period was PINE BLUFF, ARKANSAS, a
revenue bond backed by WEYERHAEUSER. The bond has a stated maturity of November
2007.
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 with high credit quality and expect to
continue to invest in these types of securities while at the same time
maintaining duration close to the benchmark.
- --------------------------------------------------------------------------------
21
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Ended Annualized
April 30, 2007 Since Inception(a)
-------------- ------------------
Schroder Municipal Bond Fund --
Investor Shares ....................... 5.31% 3.82%
Advisor Shares ........................ 5.16% 3.56%
(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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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 10 STATES
STATE % OF INVESTMENTS
- ----------------------------------------------------------
Illinois 8.3%
Louisiana 7.7
Texas 6.7
Pennsylvania 6.4
New York 5.9
STATE % OF INVESTMENTS
- ----------------------------------------------------------
California 5.7%
New Jersey 5.0
Arkansas 4.8
Colorado 3.8
Missouri 3.4
- --------------------------------------------------------------------------------
22
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 18, 2007)
PERFORMANCE
In the six months ended April 30, 2007, the Schroder Short-Term Municipal Bond
Fund rose 1.77% (Investor Shares) and 1.65% (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 1.62%.
We believe the Fund's outperformance of its benchmark was largely due to its
holdings in high-quality securities, which generated a higher level of yield and
income than the Index. The municipal bond market underperformed the taxable
markets during the six-month period. The Lehman Municipal Bond Index (which
contains tax-exempt municipal bonds with maturities across the yield curve)
returned 1.59% for the six-month period while the Lehman U.S. Aggregate Bond
Index (comprised of taxable securities) returned 2.63% for the period.
MARKET BACKGROUND
The bond market remained steady over the last six months as the Federal Reserve
held the Fed funds rate constant at 5.25%. Economic news was mixed over the
period and the market responded daily to updates. However, at the close of the
six-month period ending April 30, yields were essentially in line with where
they had started.
Over the six months, rates across the Treasury curve fell slightly on the short
end and rose at the long end. The yield on the 2-year Treasury fell by 0.10% --
from 4.69% to 4.59% during the reporting period. The yield on the 10-year
Treasury rose by 0.02% from 4.60% to 4.62%. On the long end of the yield curve,
the 30-year Treasury yield increased from 4.72% to 4.81%, or 0.09% during the
same time period.
The yield on a 2-year AAA-rated municipal bond rose 0.10% -- from 3.50% to
3.60%. The AAA-rated yield on a 30-year municipal bond fluctuated during the
period, but ended relatively flat with a 4.23 yield.
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 is a KENTUCKY STATE AREA DEVELOPMENT bond. When the Fund added
this CITY OF HENDERSON, KENTUCKY bond to its portfolio, the bond was not rated.
The bonds were general obligations of the City of Henderson (A-rated) and had
the full faith, credit and taxing power of the City. Since the City of Henderson
declined to rate the bonds, the Fund was able to purchase them at a higher
yield. During the period, this bond was pre-refunded, thus becoming AAA-rated
and backed with U.S. Treasury issues.
A bond that underperformed over the period was a PLACER COUNTY CALIFORNIA WATER
UTILITY bond. This bond is A-rated and has an effective maturity of February
2010 due to a sinking fund schedule.
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.
- --------------------------------------------------------------------------------
23
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
PERFORMANCE INFORMATION
One Year Ended Annualized
April 30, 2007 Since Inception(a)
-------------- ------------------
Schroder Short-Term Municipal Bond Fund --
Investor Shares ....................... 4.38% 2.84%
Advisor Shares ........................ 4.12% 2.59%
(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. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. 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 10 STATES
STATE % OF INVESTMENTS
- ----------------------------------------------------------
Virginia 9.0%
Texas 8.2
Illinois 8.2
Colorado 7.6
New Jersey 6.3
STATE % OF INVESTMENTS
- ----------------------------------------------------------
Missouri 4.4%
Pennsylvania 4.3
Louisiana 4.2
Arkansas 3.7
Wisconsin 3.7
- --------------------------------------------------------------------------------
24
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 97.0%
BERMUDA - 2.0%
59,700 Accenture Class A 2,334,270
55,438 ACE 3,296,343
27,834 Arch Capital Group (1) 2,026,872
66,267 Axis Capital Holdings 2,458,506
19,000 Endurance Specialty Holdings 710,980
168 Ingersoll-Rand Class A 7,501
47,744 Nabors Industries (1) 1,533,537
5,400 Nordic American Tanker Shipping 208,008
13,924 PartnerRe 1,002,806
12,200 Teekay Shipping 727,730
88,697 Tyco International 2,894,183
33,200 XL Capital Class A 2,588,936
--------------
Total Bermuda 19,789,672
--------------
CANADA - 5.3%
18,800 ACE Aviation Holdings Class A (1) 499,142
21,597 Alimentation Couche Tard Class B 461,291
50,497 ARC Energy Trust 993,011
5,900 Astral Media 230,236
45,716 AUR Resources 1,004,879
23,825 Bank of Nova Scotia 1,146,374
14,428 Barrick Gold 405,040
21,164 BCE 713,160
5,550 Bell Aliant Regional
Communications (1) (2) (3) 156,706
40,108 Biovail 981,374
11,240 Brookfield Asset Management
Class A 653,978
7,836 Canadian Imperial Bank of
Commerce 689,958
55,300 Canadian National Railway 2,771,479
18,129 Canadian Natural Resources 1,080,617
19,213 Canadian Tire Class A 1,310,591
22,755 Cinram International Income Fund 511,249
26,292 EnCana 1,376,681
24,189 Enerplus Resources Fund 1,052,222
11,000 Ensign Resource Services 185,382
800 Fairfax Financial Holdings 183,244
20,495 George Weston 1,405,614
49,022 Great-West Lifeco 1,533,926
17,954 Harvest Energy Trust 498,403
41,067 IGM Financial 1,984,140
21,117 Industrial Alliance Insurance &
Financial Services 682,078
38,990 Loblaw (1) 1,756,939
10,046 Manitoba Telecom Services 432,768
116,150 Manulife Financial 4,198,609
49,956 National Bank of Canada 2,789,540
452 Northbridge Financial 13,096
44,374 Penn West Energy Trust 1,327,301
36,736 Petro-Canada 1,633,852
12,100 Peyto Energy Trust 199,340
Shares Value $
------ -------
98,694 Power Corp. of Canada 3,357,695
5,071 Power Financial 179,011
29,195 Precision Drilling Trust 699,354
15,593 PrimeWest Energy Trust 316,694
31,600 Quadra Mining (1) 366,806
33,600 Rally Energy (1) 197,736
18,700 Real Resources (1) 156,058
8,127 Research In Motion (1) 1,067,877
53,684 Rogers Communications Class B 2,058,629
38,986 Royal Bank of Canada 2,031,516
37,779 Shaw Communications Class B 1,461,315
7,400 ShawCor 196,804
23,500 Sino-Forest (1) 285,914
4,011 Suncor Energy 321,899
23,113 TELUS (Non-Voting) 1,235,221
27,774 Thomson 1,218,742
31,133 Toronto-Dominion Bank 1,902,323
4,900 Transat AT Class B 166,704
39,048 TransCanada 1,392,510
13,800 Trinidad Energy Services
Income Trust 198,369
--------------
Total Canada 53,673,397
--------------
CAYMAN ISLANDS - 0.3%
23,372 Garmin 1,360,017
55,111 Seagate Technology 1,220,708
--------------
Total Cayman Islands 2,580,725
--------------
PUERTO RICO - 0.0%
22,771 Popular 382,781
--------------
UNITED KINGDOM - 0.1%
17,800 Willis Group Holdings 730,156
--------------
UNITED STATES - 89.3%
AMUSEMENT & RECREATION - 0.0%
587 Cedar Fair LP 17,088
--------------
APPAREL & ACCESSORY STORES - 0.3%
14,341 Abercrombie & Fitch Class A 1,171,086
7,300 Charlotte Russe Holding (1) 199,509
57,504 Limited Brands 1,585,385
--------------
2,955,980
APPAREL & OTHER FINISHED
PRODUCTS - 0.2%
22,795 VF 2,001,629
--------------
AUTOMOTIVE DEALERS &
GASOLINE SERVICE STATIONS - 0.0%
18,800 Carmax (1) 468,496
--------------
AUTOMOTIVE REPAIR, SERVICES
& PARKING - 0.1%
16,776 Ryder System 883,089
--------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 25
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
BUILDING CONSTRUCTION
GENERAL CONTRACTORS - 0.3%
56,729 DR Horton 1,258,249
10,599 KB Home 467,522
25,405 Lennar Class A 1,085,048
--------------
2,810,819
BUILDING MATERIALS,
HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 0.6%
84,361 Home Depot 3,194,751
49,205 Lowe's 1,503,705
22,472 Sherwin-Williams 1,433,039
--------------
6,131,495
BUSINESS SERVICES - 5.2%
8,700 ABM Industries 244,818
15,686 Adobe Systems (1) 651,910
7,900 Alliance Data Systems (1) 502,914
8,400 Allis-Chalmers Energy (1) 162,540
7,969 Blackbaud 175,955
39,438 Check Point Software
Technologies (1) 928,765
21,923 Cognizant Technology
Solutions Class A (1) 1,959,916
14,000 DST Systems (1) 1,092,700
40,950 eBay (1) 1,389,843
17,304 Fair Isaac 617,926
21,411 First Data 693,716
17,059 Google Class A (1) 8,041,271
12,327 Manpower 989,242
676,488 Microsoft 20,254,051
4,464 MicroStrategy Class A (1) 507,825
17,283 Omnicom Group 1,809,703
391,612 Oracle (1) 7,362,306
26,926 Parametric Technology (1) 478,475
9,814 Quality Systems (1) 397,172
49,323 RealNetworks (1) 372,389
59,976 Symantec (1) 1,055,578
30,300 Total System Services 941,118
15,920 United Online 229,726
5,700 Volt Information Sciences (1) 145,692
16,015 Western Union 337,116
36,389 Yahoo! (1) 1,020,347
--------------
52,363,014
CHEMICALS & ALLIED PRODUCTS - 9.1%
116,090 Abbott Laboratories 6,573,016
34,334 Air Products & Chemicals 2,626,551
65,519 Amgen (1) 4,202,389
21,327 Avery Dennison 1,326,539
41,690 Biogen Idec (1) 1,968,185
174,246 Bristol-Myers Squibb 5,028,739
55,958 Colgate-Palmolive 3,790,595
88,230 Dow Chemical 3,935,940
Shares Value $
------ -------
26,727 Eastman Chemical 1,809,418
91,100 EI du Pont de Nemours 4,479,387
49,020 Eli Lilly 2,898,553
8,808 FMC 677,599
16,006 Genentech (1) 1,280,320
41,487 Gilead Sciences (1) 3,390,318
20,383 Huntsman 399,507
56,213 Lyondell Chemical 1,749,349
172,838 Merck 8,890,787
496,678 Pfizer 13,142,100
15,518 PPG Industries 1,141,814
28,236 Praxair 1,822,634
206,830 Procter & Gamble 13,301,237
19,545 UAP Holding 540,810
13,159 Westlake Chemical 384,111
105,070 Wyeth 5,831,385
--------------
91,191,283
COMMUNICATIONS - 4.5%
39,089 Alltel 2,450,489
392,743 AT&T 15,207,009
74,907 Avaya (1) 967,798
36,200 CBS Class B 1,150,074
30,796 CenturyTel 1,418,156
6,829 Citizens Communications 106,327
50,851 Clear Channel Communications 1,801,651
111,680 Comcast Class A (1) 2,977,389
54,859 Comcast Special Class A (1) 1,448,278
33,700 DIRECTV Group (1) 803,408
34,956 EchoStar Communications
Class A (1) 1,626,503
20,887 Embarq 1,254,055
4,200 Liberty Media Series A (1) 474,474
106,305 Sprint Nextel 2,129,289
7,885 Telephone & Data Systems 449,051
213,379 Verizon Communications 8,146,810
40,896 Viacom Class B (1) 1,686,960
69,538 Windstream 1,016,646
--------------
45,114,367
CONSTRUCTION SPECIAL
TRADE CONTRACTORS - 0.0%
5,620 EMCOR Group (1) 352,318
--------------
DEPOSITORY INSTITUTIONS - 9.4%
282,488 Bank of America 14,378,639
72,080 Bank of New York 2,917,798
63,590 BB&T 2,646,616
38,292 Capital One Financial 2,843,564
348,105 Citigroup 18,665,390
22,788 Comerica 1,410,805
29,443 Corus Bankshares 494,937
78,657 Fifth Third Bancorp 3,192,688
54,711 Huntington Bancshares 1,213,490
23,282 IndyMac Bancorp 704,048
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 26
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
243,670 JPMorgan Chase 12,695,207
94,200 Keycorp 3,361,056
10,637 Mellon Financial 456,646
85,836 National City 3,137,306
98,718 Regions Financial 3,464,014
11,083 SunTrust Banks 935,627
32,364 U.S. Bancorp 1,111,703
139,157 Wachovia 7,728,780
94,245 Washington Mutual 3,956,405
257,303 Wells Fargo 9,234,605
--------------
94,549,324
EATING & DRINKING PLACES - 1.0%
11,000 Bob Evans Farms 403,700
7,970 CBRL Group 355,303
11,240 CKE Restaurants 228,284
29,144 Darden Restaurants 1,208,893
9,395 Jack in the Box (1) 625,895
104,843 McDonald's 5,061,820
34,476 Yum! Brands 2,132,685
--------------
10,016,580
EDUCATIONAL SERVICES - 0.1%
25,668 Apollo Group Class A (1) 1,214,096
--------------
ELECTRIC & OTHER ELECTRICAL EQUIPMENT - 7.3%
7,400 Acuity Brands 437,488
19,440 Advanced Micro Devices (1) 268,661
23,360 Analog Devices 902,163
12,990 Broadcom Class A (1) 422,825
442,583 Cisco Systems (1) 11,834,669
64,605 Emerson Electric 3,035,789
649,941 General Electric 23,956,825
29,504 Harris 1,515,030
430,321 Intel 9,251,902
7,700 Inter-Tel 194,194
6,543 Interdigital Communications (1) 215,134
33,028 Linear Technology 1,235,908
46,386 Maxim Integrated Products 1,471,364
32,531 Microchip Technology 1,312,301
207,688 Motorola 3,599,233
58,121 National Semiconductor 1,528,582
41,857 Network Appliance (1) 1,557,499
23,916 Plantronics 600,531
109,083 Qualcomm 4,777,835
33,217 Silicon Image (1) 290,981
118,092 Texas Instruments 4,058,822
12,282 Whirlpool 1,302,260
--------------
73,769,996
ELECTRIC, GAS & SANITARY SERVICES - 3.2%
59,724 Allied Waste Industries (1) 798,510
68,966 American Electric Power 3,463,472
103,090 Centerpoint Energy 1,941,185
Shares Value $
------ -------
46,303 Consolidated Edison 2,373,492
30,365 DTE Energy 1,536,165
135,878 Duke Energy 2,788,217
1,043 Great Plains Energy 34,043
29,876 Integrys Energy Group 1,676,044
74,545 KeySpan 3,086,908
9,147 NiSource 224,925
19,951 Oneok 965,828
47,394 PG&E 2,398,136
39,410 Progress Energy 1,992,175
83,640 Southern 3,160,756
37,000 TECO Energy 664,150
9,898 TXU 649,111
27,000 UGI 765,720
66,490 Waste Management 2,487,391
44,145 Xcel Energy 1,063,453
--------------
32,069,681
ENGINEERING, ACCOUNTING &
RESEARCH MANAGEMENT - 0.5%
44,369 Celgene (1) 2,713,608
24,059 KBR (1) 497,069
503 Moody's 33,259
42,842 Paychex 1,589,438
32,900 SAIC (1) 601,741
--------------
5,435,115
FABRICATED METAL PRODUCTS - 0.4%
7,858 Alliant Techsystems (1) 731,816
28,688 Ball 1,454,195
16,189 Commercial Metals 542,817
16,554 Silgan Holdings 949,868
--------------
3,678,696
FOOD & KINDRED PRODUCTS - 4.4%
147,758 Altria Group 10,183,481
62,614 Anheuser-Busch 3,079,983
15,873 Archer-Daniels-Midland 614,285
21,623 Bunge 1,638,158
44,700 Campbell Soup 1,747,770
181,200 Coca-Cola 9,456,828
14,800 Hormel Foods 563,732
54,623 Kellogg 2,890,103
102,252 Kraft Foods Class A 3,422,374
46,374 Pepsi Bottling Group 1,521,531
123,554 PepsiCo 8,165,684
68,302 Sara Lee 1,120,836
311 Wm. Wrigley Jr. 18,312
--------------
44,423,077
FOOD STORES - 0.5%
86,600 Kroger 2,555,566
87,573 Starbucks (1) 2,716,514
--------------
5,272,080
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 27
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
FURNITURE & FIXTURES - 0.5%
33,018 Johnson Controls 3,378,732
40,443 Masco 1,100,454
17,867 Tempur-Pedic International 464,006
--------------
4,943,192
GENERAL MERCHANDISE STORES - 2.5%
65,438 Costco Wholesale 3,505,514
40,971 Dollar General 874,731
24,972 JC Penney 1,975,035
2,265 Sears Holdings (1) 432,411
84,415 Target 5,011,718
60,620 TJX 1,690,692
239,027 Wal-Mart Stores 11,454,174
--------------
24,944,275
HEALTH SERVICES - 0.4%
40,655 Apria Healthcare Group (1) 1,290,390
22,823 Coventry Health Care (1) 1,319,854
26,200 Kindred Healthcare (1) 914,904
--------------
3,525,148
HOLDING & OTHER INVESTMENT OFFICES - 1.5%
20,000 American Home Mortgage
Investment REIT 495,600
19 Berkshire Hathaway Class A (1) 2,074,800
20,229 Boston Properties REIT 2,378,121
13,159 Federal Realty Investment
Trust REIT 1,186,547
29,200 Host Hotels & Resorts REIT 748,688
31,624 Kimco Realty REIT 1,520,166
12,145 Maguire Properties REIT 437,585
28,076 Public Storage REIT 2,620,052
8,304 Simon Property Group REIT 957,285
22,322 Vornado Realty Trust REIT 2,648,059
--------------
15,066,903
HOME FURNITURE, FURNISHINGS &
EQUIPMENT STORES - 0.1%
21,465 Best Buy 1,001,342
--------------
HOTELS, ROOMING HOUSES, CAMPS
& OTHER LODGING - 0.0%
8,928 Ameristar Casinos 271,054
--------------
INDUSTRIAL & COMMERCIAL MACHINERY/
COMPUTER EQUIPMENT - 5.3%
62,894 3M 5,205,736
39,398 Apple (1) 3,931,920
125,092 Applied Materials 2,404,268
7,970 Carlisle 328,205
55,189 Caterpillar 4,007,825
14,456 Cummins 1,332,265
7,500 Cymer (1) 303,825
22,297 Deere 2,439,292
184,858 Dell (1) 4,660,270
17,816 Eaton 1,589,365
Shares Value $
------ -------
47,409 EMC (1) 719,669
152,437 Hewlett-Packard 6,423,695
116,205 International Business Machines 11,877,313
27,000 Lam Research (1) 1,452,060
14,200 Lennox International 480,102
20,577 Lexmark International Class A (1) 1,121,447
3,700 Micros Systems (1) 202,760
15,938 Oil States International (1) 540,776
18,507 Parker Hannifin 1,705,235
29,686 Smith International 1,556,734
28,939 Western Digital (1) 511,642
--------------
52,794,404
INSURANCE CARRIERS - 4.6%
66,549 Allstate 4,147,334
6,417 American Financial Group 226,328
137,575 American International Group 9,617,868
14,731 Assurant 847,474
50,273 Chubb 2,706,196
24,091 Cincinnati Financial 1,089,877
72,512 Genworth Financial Class A 2,645,963
15,529 HCC Insurance Holdings 476,119
29,023 Humana (1) 1,835,414
73,794 MetLife 4,848,266
30,297 MGIC Investment 1,866,598
29,994 Nationwide Financial Services
Class A 1,713,557
11,000 Odyssey Re Holdings 460,900
17,779 Philadelphia Consolidated
Holding (1) 771,609
20,719 Reinsurance Group of America 1,291,001
5,285 Safety Insurance Group 211,717
18,720 Selective Insurance Group 488,218
32,419 Travelers 1,753,868
635 Triad Guaranty (1) 28,073
114,923 UnitedHealth Group 6,097,814
15,700 WellCare Health Plans (1) 1,265,263
1,015 WellPoint (1) 80,154
58,885 WR Berkley 1,913,174
--------------
46,382,785
LEATHER & LEATHER PRODUCTS - 0.1%
28,900 Coach (1) 1,411,187
--------------
LUMBER & WOOD PRODUCTS - 0.0%
4,400 American Woodmark 151,844
--------------
MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS - 2.7%
43,509 Applera - Applied Biosystems
Group 1,359,221
36,775 Baxter International 2,082,568
46,212 Becton Dickinson 3,636,422
25,266 Biomet 1,091,491
30,488 Kla-Tencor 1,693,609
107,957 Medtronic 5,714,164
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 28
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
22,900 Rockwell Automation 1,363,466
9,311 Rockwell Collins 611,453
44,639 St. Jude Medical (1) 1,910,103
34,800 Stryker (1) 2,259,912
27,697 Thermo Fisher Scientific (1) 1,441,906
23,900 Xerox (1) 442,150
36,153 Zimmer Holdings (1) 3,271,124
--------------
26,877,589
METAL MINING - 0.4%
19,772 Freeport-McMoRan Copper &
Gold Class B 1,327,888
18,750 Newmont Mining 781,875
28,688 Southern Copper 2,303,646
--------------
4,413,409
MINING & QUARRYING OF
NONMETALLIC MINERALS - 0.1%
16,800 Compass Minerals International 576,912
--------------
MISCELLANEOUS RETAIL - 0.9%
12,331 Big 5 Sporting Goods 315,674
63,426 CVS 2,298,558
8,025 Dick's Sporting Goods (1) 450,122
32,882 Dollar Tree Stores (1) 1,292,920
34,786 Office Depot (1) 1,169,505
33,637 PetSmart 1,116,412
88,500 Rite Aid (1) 543,390
638 Staples 15,823
45,805 Walgreen 2,010,840
--------------
9,213,244
MOTION PICTURES - 1.3%
30,600 Blockbuster Class A (1) 189,720
79,130 News Class A 1,771,721
33,134 News Class B 795,216
269,441 Time Warner 5,558,568
123,446 Walt Disney 4,318,141
--------------
12,633,366
MOTOR FREIGHT TRANSPORTATION
& WAREHOUSING - 0.5%
35,186 JB Hunt Transport Services 952,133
63,004 United Parcel Service Class B 4,437,372
--------------
5,389,505
NON-DEPOSITORY CREDIT INSTITUTIONS - 1.6%
14,344 Advance America Cash
Advance Centers 245,856
25,752 American Capital Strategies 1,253,607
92,068 American Express 5,585,766
34,706 CapitalSource REIT 894,374
25,102 CIT Group 1,497,334
21,809 Countrywide Financial 808,678
86,879 Fannie Mae 5,118,911
14,300 First Marblehead 518,375
Shares Value $
------ -------
1,208 Freddie Mac 78,254
16,800 MCG Capital 296,016
--------------
16,297,171
OIL & GAS EXTRACTION - 2.6%
62,267 Anadarko Petroleum 2,905,378
5,200 Arena Resources (1) 244,140
56,586 BJ Services 1,621,755
50,404 Devon Energy 3,672,940
29,200 ENSCO International 1,646,296
22,085 Halliburton 701,640
6,300 Hercules Offshore (1) 198,009
28,400 Newfield Exploration (1) 1,242,500
35,911 Noble Energy 2,111,926
80,407 Occidental Petroleum 4,076,635
42,864 Patterson-UTI Energy 1,045,453
4,100 Petroleum Development (1) 213,200
50,259 Schlumberger 3,710,622
5,282 SEACOR Holdings (1) 503,269
34,945 Weatherford International (1) 1,834,263
--------------
25,728,026
PAPER & ALLIED PRODUCTS - 0.1%
9,228 Greif Class A 513,077
1,634 Neenah Paper 62,419
6,200 Rock-Tenn Class A 237,212
8,400 Sonoco Products 358,176
--------------
1,170,884
PERSONAL SERVICES - 0.1%
51,084 H&R Block 1,155,009
--------------
PETROLEUM REFINING - 6.1%
159,880 Chevron 12,437,065
122,332 ConocoPhillips 8,483,724
381,178 Exxon Mobil 30,257,910
34,738 Hess 1,971,381
33,945 Marathon Oil 3,447,115
12,163 Sunoco 918,671
56,716 Valero Energy 3,983,165
--------------
61,499,031
PIPELINES, EXCEPT NATURAL GAS - 0.2%
29,696 Plains All American Pipeline LP 1,751,767
1,470 Sunoco Logistics Partners LP 88,259
7,100 TEPPCO Partners LP 323,405
--------------
2,163,431
PRIMARY METAL INDUSTRIES - 0.6%
73,550 Corning (1) 1,744,606
10,905 General Cable (1) 626,383
9,982 Mueller Industries 327,409
42,165 Nucor 2,675,791
8,304 Superior Essex (1) 296,453
--------------
5,670,642
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 29
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
PRINTING, PUBLISHING &
ALLIED INDUSTRIES - 0.8%
24,380 Dow Jones 885,725
15,014 EW Scripps Class A 650,106
49,744 Gannett 2,838,393
21,230 Idearc 737,743
14,197 McGraw-Hill 930,329
10,054 Meredith 582,328
29,496 Tribune 967,469
--------------
7,592,093
REAL ESTATE - 0.1%
23,013 CB Richard Ellis Group Class A (1) 778,990
--------------
SECURITY & COMMODITY BROKER, DEALERS
EXCHANGES & SERVICES - 2.9%
7,549 AllianceBernstein Holding LP 686,657
3,271 Cbot Holdings Class A (1) 617,140
1,256 Chicago Mercantile Exchange
Holdings Class A 649,038
37,477 Goldman Sachs Group 8,192,847
60,060 Lehman Brothers Holdings 4,521,317
39,475 Merrill Lynch 3,561,829
92,054 Morgan Stanley 7,733,457
11,038 Nuveen Investments Class A 588,325
24,691 T Rowe Price Group 1,226,649
71,485 TD Ameritrade Holding (1) 1,218,819
--------------
28,996,078
TOBACCO PRODUCTS - 0.3%
25,000 Reynolds American 1,606,500
19,474 UST 1,103,786
--------------
2,710,286
TRANSPORTATION BY AIR - 0.2%
4,900 Atlas Air Worldwide Holdings (1) 281,848
9,696 FedEx 1,022,346
10,200 Republic Airways Holdings (1) 216,852
13,841 Skywest 376,614
--------------
1,897,660
TRANSPORTATION EQUIPMENT - 2.4%
28,978 Boeing 2,694,954
44,813 General Dynamics 3,517,821
27,242 Goodrich 1,548,435
36,814 Harley-Davidson 2,331,062
5,660 Honeywell International 306,659
16,600 Lear 609,552
35,379 Lockheed Martin 3,401,337
10,803 Northrop Grumman 795,533
29,812 Paccar 2,503,612
11,436 Polaris Industries 577,861
85,629 United Technologies 5,748,275
--------------
24,035,101
Shares Value $
------ -------
TRANSPORTATION SERVICES - 0.0%
7,888 Pacer International 201,538
--------------
WATER TRANSPORTATION - 0.2%
14,100 General Maritime 452,187
6,200 Horizon Lines, Class A 210,862
19,293 OMI 560,847
8,125 Overseas Shipholding Group 575,250
--------------
1,799,146
WHOLESALE TRADE NON-DURABLE
GOODS - 1.4%
30,929 AmerisourceBergen 1,546,141
33,300 Cardinal Health 2,329,335
51,816 Dean Foods 1,887,657
59,613 McKesson 3,507,033
15,500 Men's Wearhouse 670,685
34,788 Nike Class B 1,873,681
70,234 Sysco 2,299,461
--------------
14,113,993
WHOLESALE TRADE-DURABLE
GOODS - 1.7%
12,582 Anixter International (1) 900,871
20,566 Arrow Electronics (1) 812,769
26,392 Avnet (1) 1,079,433
216,174 Johnson & Johnson 13,882,694
334 W.W. Grainger 27,595
--------------
16,703,362
--------------
Total United States 896,826,823
--------------
TOTAL COMMON STOCK
(Cost $849,691,104) 973,983,554
--------------
Principal
Amount $
---------
SHORT-TERM
INVESTMENT - 2.9%
29,092,091 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 4.80% 29,092,091
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $29,092,091) 29,092,091
--------------
TOTAL
INVESTMENTS - 99.9%
(Cost $878,783,195) 1,003,075,645
--------------
OTHER ASSETS LESS
LIABILITIES - 0.1% 860,735
--------------
NET ASSETS - 100.0% $1,003,936,380
==============
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 30
- --------------------------------------------------------------------------------
SCHRODER NORTH AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
(1) Denotes non-income producing security.
(2) 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, 2007, the value of this
security amounted to $156,706, representing 0.0% of the net assets of the
Fund.
(3) Security considered illiquid. On April 30, 2007, the value of this security
amounted to $156,706, representing 0.0% of the net assets of the Fund.
Security is fair valued. (See Note 2 in Notes to Financial Statements.)
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
- --------------------------------------------------------------------------------
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2007:
NET
NUMBER UNREALIZED
OF EXPIRATION APPRECIATION
CONTRACTS VALUE DATE (DEPRECIATION)
- --------------------------------------------------------------------------------
LONG:
S&P 500 27 $10,046,700 June-07 $ 68,312
S&P/TSE
60 Index 14 1,936,482 June-07 (31,579)
--------
$ 36,733
========
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 31
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 95.8%
AUSTRALIA - 7.6%
16,132 Abacus Property Group 26,457
8,802 Amcor 54,201
6,157 Aspen Group 11,995
3,596 Ausdrill 6,146
1,450 Auspine 4,830
3,504 AWB 9,810
4,728 BlueScope Steel 46,930
4,387 Boral 30,583
10,346 Centro Retail Group 14,395
1,827 City Pacific 6,894
108 Coca-Cola Amatil 848
573 Commonwealth Bank of Australia 24,979
19,599 Commonwealth Property
Office Fund 23,375
1,397 Crane Group 19,356
8,624 CSR 26,150
21,267 DB RREEF Trust 31,648
12,766 DUET Group 36,607
15,935 Futuris 31,596
623 Galileo Shopping America Trust 613
278 GrainCorp 2,360
1,049 GUD Holdings 7,026
5,693 Hastings Diversified Utilities Fund 15,414
15,936 ING Industrial Fund 32,175
19,042 ING Office Fund 26,047
17,158 Investa Property Group 37,872
3,171 MacArthur Coal 13,017
335 Macquarie Airports Management 1,103
4,797 Macquarie Communications
Infrastructure Group 26,247
14,277 Macquarie CountryWide Trust 25,244
14,897 Macquarie DDR Trust 15,460
20,326 Macquarie Office Trust 26,974
14,512 Macquarie ProLogis Trust 16,985
11,656 Pacific Brands 31,176
6,002 PaperlinX 19,348
1,841 Port Bouvard 3,250
1,916 Ridley Corp 1,840
3,828 Santos 35,441
1,665 Sims Group 33,549
9,536 Smorgon Steel Group 17,297
123 Stockland 876
1,277 TABCORP Holdings 19,131
14,080 Telstra 54,377
7,449 Tishman Speyer Office Fund 16,401
11,598 Valad Property Group 21,571
552 Wesfarmers 17,871
2,681 Westfield Group 46,406
--------------
971,871
Shares Value $
------ -------
AUSTRIA - 0.4%
159 Agrana Beteiligungs (1) 16,746
587 OMV (1) 37,150
--------------
53,896
BELGIUM - 3.5%
3 Banque Nationale de Belgique 14,707
98 Befimmo REIT 11,645
121 Bekaert 17,193
861 Belgacom 37,838
42 Cie du Bois Sauvage 20,741
70 Cofinimmo REIT (1) 14,354
115 Compagnie Immobiliere
de Belgique 7,415
429 Cumerio 12,909
545 Delhaize Group 52,321
1,843 Dexia 60,106
1,113 Euronav 37,444
378 Gimv 26,464
136 Intervest Offices REIT 5,460
298 KBC Groep (1) 39,422
205 Solvay 32,452
634 Tessenderlo Chemie 33,857
214 Warehouses De Pauw REIT 14,868
66 Wereldhave Belgium REIT 5,703
--------------
444,899
BERMUDA - 0.1%
1,355 Catlin Group 14,079
2 Ship Finance International (1) 58
--------------
14,137
BRAZIL - 1.2%
500 Banco do Brasil 17,217
600 Banco Nossa Caixa 9,357
500 Brasil Telecom Participacoes ADR 26,515
500 Cia de Saneamento Basico do
Estado de Sao Paulo ADR 17,275
600,000 Cia Paranaense de Energia 6,947
1,000 Cia Petroquimica do Sul 17,601
1,500 CPFL Energia 23,599
1,200 Gerdau ADR 24,036
1,000 Tele Norte Leste Participacoes
ADR 16,370
--------------
158,917
BRITISH VIRGIN ISLANDS - 0.0%
5,357 Empire Online 4,427
--------------
CANADA - 7.4%
4,400 Abitibi-Consolidated 11,539
1,800 Algonquin Power Income Fund 15,005
400 Atco 17,696
981 Baytex Energy Trust 18,639
1,600 BCE 53,915
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 32
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
1,600 Bell Aliant Regional Communications (1) 45,177
500 Calloway REIT 12,392
1,000 Canadian Apartment
Properties REIT 18,953
1,000 Chartwell Seniors Housing REIT 13,879
800 Cinram International
Income Fund 17,974
600 Cominar REIT 12,897
1,100 Emera 21,324
900 Empire Class A 34,512
532 Enerplus Resources Fund 23,142
500 EPCOR Power LP 11,793
200 Fairfax Financial Holdings 45,811
500 Fording Canadian Coal Trust 11,968
1,442 GAZ Metro LP 21,560
800 George Weston 54,867
2,040 Gerdau Ameristeel 25,092
1,100 H&R REIT 24,843
1,000 InnVest REIT 12,924
2,200 Inter Pipeline Fund Class A 18,736
600 Laurentian Bank of Canada 17,433
1,100 Linamar 16,337
500 Magna International Class A 39,586
600 Manitoba Telecom Services 25,847
1,000 Mullen Group Income Fund 18,088
3,000 Norbord 22,792
800 Northbridge Financial 23,179
800 Phoenix Technology Income Fund 6,525
1,000 Power Corp. of Canada 34,021
400 Precision Drilling Trust 9,582
1,100 Primaris Retail REIT 20,323
1,400 Provident Energy Trust 16,339
600 Quebecor World 8,133
600 RioCan REIT 13,897
1,100 Rothmans 21,195
400 Sobeys 20,602
900 Thunder Energy Trust 3,326
996 Torstar, Class B 18,679
1,100 TransAlta 25,924
300 West Fraser Timber 11,020
2,200 Yellow Pages Income Fund 27,877
--------------
945,343
CHILE - 0.1%
1,941,329 CorpBanca (1) 10,281
--------------
CHINA - 0.8%
16,000 Aluminum Corp. of China
Class H 18,568
26,000 China Petroleum & Chemical
Class H 22,671
34,000 China Telecom Class H 16,107
18,000 Huaneng Power International
Class H 18,179
Shares Value $
------ -------
16,000 PetroChina Class H 17,967
20,000 Sinopec Shanghai Petrochemical
Class H 11,380
--------------
104,872
DENMARK - 0.1%
200 D/S Torm 14,021
--------------
FINLAND - 2.1%
630 Elcoteq 5,483
686 Huhtamaki (1) 11,665
400 Kesko B Shares 27,748
1,514 Neste Oil 53,449
1,000 OKO Bank Class A 18,975
1,220 Outokumpu (1) 40,534
400 PKC Group 5,718
2,119 Raisio V Shares 5,789
600 Rautaruukki 32,350
2,248 Stora Enso R Shares (1) 41,017
905 UPM-Kymmene (1) 22,302
--------------
265,030
FRANCE - 7.6%
865 Air France-KLM 44,110
701 AXA 32,182
443 BNP Paribas (1) 51,387
440 Bongrain 48,317
684 Bouygues 54,496
535 Casino Guichard-Perrachon 57,467
462 CNP Assurances 58,889
138 Compagnie Plastic-Omnium 6,947
1,199 Credit Agricole (1) 50,484
201 Esso Ste Anonyme Francaise 55,882
1,950 France Telecom (1) 57,016
316 Lagardere (1) 24,833
1,700 Natixis 46,370
479 Peugeot 38,860
254 Pierre & Vacances 37,053
402 Rallye 28,056
403 Renault 52,310
285 Societe Generale 60,392
169 Ste Industrielle d'Aviation
Latecoere (1) 6,180
737 TOTAL (1) 54,324
949 Valeo (1) 54,519
1,190 Vivendi (1) 49,081
--------------
969,155
GERMANY - 7.0%
48 Allianz (1) 10,938
220 AMB Generali Holding 34,718
752 Balda 10,724
420 BASF (1) 50,105
765 Bayerische Motoren Werke 47,051
646 DaimlerChrysler 52,288
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 33
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
347 Deutsche Bank 53,221
1,800 Deutsche Lufthansa 53,797
1,587 Deutsche Post 54,629
2,929 Deutsche Telekom 53,330
277 E.ON (1) 41,429
337 Hannover Rueckversicherung (1) 17,061
906 IKB Deutsche Industriebank (1) 37,587
455 Indus Holding (1) 19,386
285 Koenig & Bauer (1) 10,242
848 Leoni (1) 38,298
198 Muenchener Rueckversicherungs 35,168
998 MVV Energie 41,371
573 Norddeutsche Affinerie 18,881
519 RWE (1) 54,698
125 Schlott Gruppe 3,882
256 Sixt 14,806
715 Suedzucker 14,625
1,055 ThyssenKrupp 56,355
205 Volkswagen 30,968
921 Wuestenrot & Wuerttembergische 31,388
--------------
886,946
GREECE - 0.9%
1,100 Diana Shipping 22,275
600 DryShips 21,228
1,320 Heracles General Cement (1) 32,226
1,059 Public Power 27,753
2,651 Technical Olympic 5,909
--------------
109,391
GUERNSEY - 0.3%
5,219 ISIS Property Trust 2 14,160
7,417 UK Balanced Property Trust 21,131
--------------
35,291
HONG KONG - 0.8%
36,822 Champion Technology Holdings 7,474
2,000 Guoco Group 28,899
5,000 Orient Overseas International 42,280
18,000 Public Financial Holdings 13,612
14,000 TPV Technology 9,396
6,000 Truly International Holdings 6,019
--------------
107,680
INDONESIA - 0.2%
501,000 Bank Internasional Indonesia (1) 10,270
10,000 Gudang Garam 11,851
--------------
22,121
IRELAND - 0.2%
10,585 Fyffes 14,581
4,558 Total Produce (1) 4,789
--------------
19,370
ISRAEL - 0.6%
1,618 Bank Hapoalim 8,450
4,582 Bank Leumi Le-Israel 17,203
Shares Value $
------ -------
5,521 Bezeq Israeli Telecommunication 8,811
46 Delek Group (1) 10,214
265 Discount Investment 7,977
232 IDB Development 8,545
5,619 Migdal Insurance Holdings 9,225
--------------
70,425
ITALY - 6.3%
706 Acegas (1) 8,965
7,695 AEM 30,079
2,604 Alleanza Assicurazioni 36,564
291 Banco di Sardegna 8,366
1,861 BPU Banca 56,306
1,984 Caltagirone (1) 25,822
8,978 Cofide (1) 16,876
5,057 Cremonini (1) 18,639
5,016 Enel 56,998
1,705 ENI 56,538
1,189 ERG 33,236
1,754 Ergo Previdenza 12,570
1,078 Fondiaria 57,086
6,433 Intek 8,668
6,845 Intesa Sanpaolo 57,348
204 Italmobiliare 26,183
9,808 KME Group (1) 9,695
2,695 Meliorbanca 17,742
1,746 Milano Assicurazioni 17,196
3,113 Navigazione Montanari (1) 18,643
12,085 Pirelli (1) 15,073
171 Pirelli & C Real Estate (1) 13,009
3,710 Snam Rete Gas (1) 23,694
447 Societa Cattolica di Assicurazioni 28,091
1,322 Societa Iniziative Autostradali
e Servizi 22,376
16,320 Telecom Italia (1) 48,961
7,339 Terna 27,366
13,810 Unipol 54,901
--------------
806,991
JAPAN - 13.1%
3,400 Alps Electric 35,136
1,400 Arbeit-Times (1) 2,099
2,000 Ashimori Industry 4,328
6 Can Do 4,987
1,000 CFS 4,708
1,200 Cleanup 10,666
10,000 Cosmo Oil 41,635
2,000 Dai-Ichi Kogyo Seiyaku 5,192
1,000 Daio Paper 7,674
44 Dynacity 3,633
700 Eneserve (1) 2,386
700 Ferrotec 5,269
9,000 Fuji Heavy Industries 44,527
4,000 Fujitsu 25,148
3,000 Fujitsu General (1) 6,701
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 34
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
500 Fuyo General Lease 15,908
2 Grandy House (1) 1,524
3,000 Gun-Ei Chemical Industry 8,180
600 Hakuto 8,874
2,000 Hanwa 10,046
8,000 Hino Motors 44,063
800 Hitachi Capital 13,383
2,000 Hodogaya Chemical 6,886
4,000 Hokkaido Gas 10,279
1,000 Hokkan Holdings 3,625
1,400 Hokuriku Electric Power 31,812
6,000 Hunet 1,151
3,000 Ichikoh Industries 8,387
1,000 Inageya 7,603
2,400 Itochu Enex 18,340
2,000 Izumiya 15,662
1,200 Japan Medical Dynamic
Marketing (1) 3,109
8 Japan Prime REIT 36,411
3,000 JFE Shoji Holdings 16,397
1,000 JMS 3,142
1,000 Joshin Denki 6,681
600 Kaga Electronics 11,025
800 Kato Sangyo 10,854
700 Kojima 5,621
6,000 Kurabo Industries 16,336
200 Kyoshin Technosonic (1) 1,576
1,600 Kyushu Electric Power 45,079
6,000 Marubeni 36,035
1,200 Marusan Securities 15,102
2,000 Mito Securities 8,950
1,000 Mitsuba 7,906
300 Mitsubishi UFJ Lease & Finance 12,832
1,100 Mutow 4,419
3,000 Nakayama Steel Works 10,694
1,000 NEC Fielding 12,788
700 NEC Leasing 13,539
3,000 Nice 11,762
1,000 Nippon Denwa Shisetsu 3,485
3,000 Nippon Formula
Feed Manufacturing 4,140
3,000 Nippon Light Metal 8,246
6,000 Nippon Mining Holdings 48,196
7,000 Nippon Oil 53,766
8 Nippon Paper Group 27,078
10 Nippon Telegraph & Telephone 49,661
4,000 Nippon Yusen Kabushiki Kaish 34,407
2,000 Nipro 38,543
4,200 Nissan Motor 42,254
2,000 Nissan Shatai 10,079
4,000 OJI Paper 20,441
13,000 Oki Electric Industry 22,359
1,000 Oriental Yeast 6,008
2,000 Pacific Industrial 12,008
Shares Value $
------ -------
500 Poplar 4,076
500 Ricoh Leasing 11,598
3,000 San-Ai Oil 15,397
2,000 Sanden 8,703
1,900 Sankyo Seiko 9,910
1,200 Sanoh Industrial 7,291
1,700 Seiko Epson 51,501
1,700 Seiko PMC 5,355
2,000 Shindengen Electric
Manufacturing 9,163
3,400 Showa Shell Sekiyu 40,830
200 Sogo Medical 4,732
8 Tact Home 5,903
1,100 Taiho Kogyo 15,511
13,000 Taisei 44,836
2,000 Takagi Securities 8,342
660 Takefuji 22,187
2,000 Tayca 5,219
2,000 TBK 7,735
2,000 Tobu Store 5,491
2,000 Toho 6,640
800 Tohoku Electric Power 19,108
2,000 Tokai 6,785
1,000 Tokai Lease 1,971
5,000 Tokai Tokyo Securities 26,828
1,100 Tokyo Leasing 16,276
4,000 Tomoku 8,594
5,000 Toppan Printing 50,729
3,000 Toshiba TEC 17,665
3,000 Tosho Printing 9,362
6,000 Toyo Ink Manufacturing 23,364
2,000 Toyo Securities 8,204
1,700 Toyota Auto Body 30,465
2,000 UNY 23,922
200 USC (1) 2,994
900 Vital-net 5,930
900 Yellow Hat 6,595
3,000 Yodogawa Steel Works 18,519
3,000 Yokohama Rubber 18,571
--------------
1,667,043
LUXEMBOURG - 0.0%
912 Gaming VC Holdings 2,395
--------------
MALAYSIA - 0.6%
4,300 Hong Leong Financial Group 7,259
12,900 Petronas Dagangan 26,472
4,000 Shell Refining 12,493
8,000 UMW Holdings 26,616
--------------
72,840
MEXICO - 0.1%
1,600 Alfa Class A 11,982
--------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 35
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
NETHERLANDS - 4.5%
425 ABN AMRO Holding 20,618
2,705 Aegon 55,823
1,247 Corporate Express (1) 16,753
1,588 European Aeronautic
Defence and Space 50,821
1,161 ING Groep 52,876
253 KAS Bank 8,950
447 Koninklijke 21,321
579 Koninklijke Wessanen 9,144
461 Nieuwe Steen
Investments Funds (1) 13,633
2,430 OCE 45,746
1,363 Royal Dutch Shell A Shares 47,339
1,419 Royal Dutch Shell B Shares 49,966
3,072 Royal KPN 52,152
2,249 SNS Reaal (1) 56,380
2,302 Trader Classified Media,Class A (1) 3,561
213 Univar 11,692
446 Vastned Offices/Industrial 18,274
235 Vastned Retail 22,924
105 Wereldhave 15,188
--------------
573,161
NEW ZEALAND - 0.6%
4,151 Air New Zealand 8,669
8,768 AMP NZ Office Trust 8,688
2,955 Fisher & Paykel
Appliances Holdings 7,706
1,497 Fletcher Building 12,617
7,801 ING Property Trust 7,093
1,500 Nuplex Industries 8,231
1,780 Steel & Tube Holdings 5,547
2,768 Telecom Corp. of New Zealand 9,866
4,529 Vector 9,573
--------------
77,990
NORWAY - 2.1%
5,000 ABG Sundal Collier 11,674
1,000 Aker Yards 17,934
800 Camillo Eitzen 8,337
1,900 DnB NOR 27,112
1,200 Frontline 44,910
1,650 Norsk Hydro 56,882
2,000 Norske Skogindustrier ASA 30,609
1,100 Sparebanken Midt-Norge 14,146
250 Sparebanken Nord-Norge 5,954
400 Sparebanken Rogaland 11,630
1,300 Statoil 36,389
--------------
265,577
POLAND - 0.6%
280 KGHM Polska Miedz 10,626
2,061 Polski Koncern Naftowy Orlen 33,583
4,052 Telekomunikacja Polska 32,468
--------------
76,677
Shares Value $
------ -------
PORTUGAL - 0.2%
1,886 Semapa-Sociedade de
Investimento e Gestao 30,144
--------------
SINGAPORE - 0.9%
1,000 Jardine Cycle & Carriage 8,677
12,000 MobileOne 17,664
11,000 Neptune Orient Lines 25,860
4,000 Singapore Airlines 47,635
5,000 Singapore Petroleum 15,810
--------------
115,646
SOUTH AFRICA - 1.1%
3,056 African Bank Investments 14,735
4,869 Growthpoint Properties 10,992
1,003 JD Group 13,297
1,227 Liberty Group (1) 16,013
449 Liberty Holdings (1) 14,919
6,245 Metropolitan Holdings 14,887
899 Mittal Steel South Africa 16,263
4,750 Nampak 15,476
219 Nedbank Group 4,692
729 Telkom 17,903
--------------
139,177
SOUTH KOREA - 3.9%
510 Daishin Securities 12,342
720 Dongkuk Steel Mill 19,650
590 GS Holdings 26,746
580 Hanjin Shipping 25,317
240 Honam Petrochemical 19,896
790 Hyundai Merchant Marine 25,048
190 Hyundai Motor 12,020
900 Hyundai Securities 13,785
440 Hyundai Steel 18,153
810 Korea Electric Power 33,042
450 Korea Gas 18,605
4 Korean Air Lines 188
1,000 KT ADR 22,660
790 KT Freetel 24,241
690 LG 25,198
390 LG Chem 22,700
650 LG Dacom 15,915
260 LG Electronics 17,346
550 LS Cable 30,038
61 POSCO 25,590
250 S-Oil 19,235
200 Samsung SDI 11,697
310 SK 33,778
1,200 SK Telecom ADR (1) 29,796
--------------
502,986
SPAIN - 1.3%
1,900 Banco Santander Central Hispano 34,195
4,100 Corp Mapfre 21,352
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 36
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
1,018 Endesa 55,608
1,711 Repsol 56,364
--------------
167,519
SWEDEN - 4.2%
750 Axfood 30,363
600 Bilia A Shares 11,092
800 Brostrom B Shares 17,027
1,000 D Carnegie 19,793
2,000 Electrolux, Series B (1) 52,032
1,700 Fabege 45,316
600 Haldex 14,158
300 Holmen B Shares 13,379
1,096 Industrivarden C Shares 23,608
1,600 Investor B Shares 42,826
2,500 Klovern (1) 11,847
2,200 Kungsleden 35,535
1,000 NCC B Shares 28,112
1,400 Ratos B Shares 46,539
3,600 Securitas B Shares 54,724
300 Svenska Cellulosa B Shares 15,441
800 Trelleborg B Shares 24,688
2,500 Volvo A Shares (1) 49,633
--------------
536,113
SWITZERLAND - 1.6%
112 Basler Kantonalbank 11,054
554 Ciba Specialty Chemicals (1) 36,604
391 Credit Suisse Group 30,688
32 Georg Fischer 24,639
40 Intershop Holdings 10,455
15 Schweizerische National-
Versicherungs-Gesellschaft 12,727
120 Swiss Life Holding 30,888
254 Swiss Prime Site (1) 15,516
321 Swiss Reinsurance (1) 30,175
--------------
202,746
TAIWAN - 0.2%
1,100 Chunghwa Telecom ADR 21,890
--------------
THAILAND - 0.2%
4,400 Advanced Info Service
Regular Shares 9,500
40,800 Land & Houses 8,862
1,600 Siam Cement 10,895
--------------
29,257
TURKEY - 0.5%
1,700 Aksa Akrilik Kimya Sanayii (1) 4,696
1,198 Arcelik 8,840
5,879 Dogan Sirketler Grubu
Holdings (1) 11,072
879 Dogus Otomotiv Servis
ve Ticaret (1) 4,092
1,178 Ford Otomotiv Sanayi 9,988
Shares Value $
------ -------
1,695 Sarkuysan Elektrolitik Bakir (1) 4,560
794 Tupras Turkiye Petrol Rafine 16,043
2,020 Turkiye Vakiflar Bankasi Tao (1) 5,276
--------------
64,567
UNITED KINGDOM - 12.9%
3,111 Alexon Group 15,510
2,246 Alliance & Leicester 51,089
1,378 Alliance Boots (1) 30,743
7,696 Alpha Airports Group 11,105
955 Anglo American 50,286
3,368 Antofagasta 35,691
2,470 Arriva 37,126
1,555 Aviva 24,394
3,488 Barclays 50,350
6,061 Beazley Group 19,138
630 Blacks Leisure Group 3,294
4,583 BP 51,410
5,557 Brit Insurance Holdings 39,021
920 British Polythene Industries 8,539
7,956 BT Group 50,041
9,886 Chaucer Holdings 19,537
2,439 Chesnara 8,663
8,987 Christian Salvesen 11,725
6,947 Clinton Cards 9,478
3,788 Davis Service Group 47,824
1,586 Dawson Holdings 3,431
4,005 DS Smith 18,949
15,196 DSG International 48,640
11,047 FKI 26,453
3,931 George Wimpey 45,535
6,340 Highway Insurance Holdings 9,304
756 Hitachi Capital UK 4,040
7,327 HMV Group 16,436
6,218 Home Retail Group 56,437
2,718 HSBC Holdings 50,145
5,329 Jessops 1,969
525 John Menzies 5,721
1,666 Johnson Service Group 11,840
1,470 Kensington Group 16,707
2,822 Ladbrokes 22,874
9,304 Legal & General Group 28,530
4,730 Lloyds TSB Group 54,613
5,484 London Scottish Bank 12,460
1,506 Luminar 23,911
2,782 Monstermob Group (1) 2,030
2,380 Northern Rock 50,888
15,332 Old Mutual 54,408
2,744 Paragon Group 29,783
10,545 Pendragon 25,357
4,006 Resolution 51,563
4,395 Rexam 46,002
1,267 Royal Bank of Scotland Group 48,507
1,536 RPC Group 7,998
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 37
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
1,275 SciSys 2,396
1,872 Severn Trent 55,363
9,697 SMG 12,312
400 Stolt-Nielsen 12,075
1,355 Tate & Lyle 16,800
5,848 Taylor Woodrow 56,340
1,931 TDG 11,780
9,214 Tomkins 48,571
946 United Utilities 14,099
15,968 Vodafone Group 45,424
3,986 Wagon 9,286
24,233 Woolworths Group 14,221
--------------
1,648,162
--------------
TOTAL COMMON STOCK
(Cost $10,536,677) 12,220,936
--------------
PREFERRED STOCK - 1.3%
BRAZIL - 0.9%
600,000 Centrais Eletricas Brasileiras
Class B 14,100
4,400 Investimentos Itau 24,012
6,000 Klabin 18,673
700 Metalurgica Gerdau 18,481
700 Telemar Norte Leste ADR 16,443
400 Usinas Siderurgicas de Minas
Gerais Class A 18,682
--------------
110,391
GERMANY - 0.4%
493 Jungheinrich (1) 20,080
918 ProSiebenSat.1 Media 33,409
--------------
53,489
--------------
TOTAL PREFERRED
STOCK
(Cost $118,730) 163,880
--------------
WARRANTS - 0.0%
ITALY - 0.0%
2,380 Intek, Expires 06/13/08 (1) 901
--------------
TOTAL WARRANTS
(Cost $0) 901
--------------
RIGHTS - 0.0%
AUSTRALIA - 0.0%
1,841 Port Bouvard, Expires 05/23/07 (1) 688
--------------
BRAZIL - 0.0%
4,400 Investimentos Itau,
Expires 06/06/07 (1) 60
--------------
TOTAL RIGHTS
(Cost $836) 748
--------------
Principal
Amount $ Value $
- ------------ -------
SHORT-TERM
INVESTMENT - 2.3%
291,200 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 4.80% 291,200
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $291,200) 291,200
--------------
TOTAL
INVESTMENTS - 99.4%
(Cost $10,947,443) 12,677,665
--------------
OTHER ASSETS LESS
LIABILITIES - 0.6% 73,410
--------------
NET ASSETS - 100.0% $ 12,751,075
==============
(1) Denotes non-income producing security.
ADR -- American Depositary Receipts
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 38
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 84.9%
AUTO & TRANSPORTATION - 3.3%
38,500 Air Canada Class A
(Canada) (1) (3) (4) 579,443
73,000 Horizon Lines, Class A 2,482,730
36,700 Kansas City Southern (1) 1,363,405
37,500 Laidlaw International 1,284,375
120,900 Republic Airways Holdings (1) 2,570,334
61,800 Seaspan (1) 1,735,344
--------------
10,015,631
CONSUMER DISCRETIONARY - 17.1%
60,300 Aaron Rents 1,710,711
46,300 Bright Horizons Family
Solutions (1) 1,788,106
76,600 Central Garden & Pet (1) 1,134,446
115,500 Central Garden & Pet, Class A (1) 1,653,960
125,200 Claire's Stores 4,077,764
78,000 Clear Channel Outdoor
Holdings Class A (1) 2,226,900
104,700 Diamond Management &
Technology Consultants 1,187,298
74,100 Geo Group (1) 3,793,920
40,400 Guitar Center (1) 1,870,520
30,200 Heidrick & Struggles
International (1) 1,424,836
15,400 Home Inns & Hotels
Management ADR (1) 527,758
35,000 LKQ (1) 790,300
25,400 Pinnacle Entertainment (1) 713,232
102,600 Rare Hospitality International (1) 2,987,712
43,300 Regis 1,655,359
57,200 Rent-A-Center (1) 1,592,448
33,379 Ritchie Brothers Auctioneers 1,972,031
175,400 Scientific Games Class A (1) 5,839,066
44,100 Standard Parking (1) 1,487,493
120,600 Talbots 2,834,100
37,700 THQ (1) 1,258,049
74,200 Valueclick (1) 2,122,120
40,500 Viad 1,654,020
85,900 Waste Connections (1) 2,677,503
47,500 Watson Wyatt Worldwide Class A 2,238,675
--------------
51,218,327
CONSUMER STAPLES - 0.4%
36,900 Flowers Foods 1,150,911
--------------
FINANCIAL SERVICES - 14.2%
114,850 Annaly Mortgage Management 1,827,264
117,605 Apollo Investment (2) 2,583,782
79,000 Bank of Hawaii 4,179,100
40,400 Berkshire Hills Bancorp 1,302,496
35,000 CompuCredit (1) 1,265,600
152,000 Conseco (1) 2,688,880
47,200 Crystal River Capital 1,239,944
Shares Value $
------ -------
31,243 Cullen/Frost Bankers 1,598,704
104,420 CVB Financial 1,239,465
33,900 Digital Realty Trust 1,371,255
44,136 Endurance Specialty Holdings 1,651,569
84,600 Euronet Worldwide (1) 2,356,110
53,350 H&E Equipment Services (1) 1,262,261
63,808 Health Care REIT 2,886,674
111,464 Max Re Capital 2,987,235
104,500 National Retail Properties REIT 2,502,775
68,700 PennantPark Investment (1) 1,029,126
72,500 Reinsurance Group of America 4,517,475
19,800 SVB Financial Group (1) 1,014,156
60,100 Westamerica Bancorporation 2,814,483
--------------
42,318,354
HEALTH CARE - 11.6%
88,500 Animal Health International (1) 1,182,360
86,200 Array Biopharma (1) 1,202,490
49,700 BioMarin Pharmaceuticals (1) 803,152
158,100 Bruker BioSciences (1) 1,819,731
148,800 Cepheid (1) 1,687,392
48,500 Cooper 2,478,350
55,400 Dialysis Corp. of America (1) 645,410
73,300 DJO (1) 2,863,098
1,700 Haemonetics (1) 81,328
54,700 Human Genome Sciences (1) 589,119
40,968 Immucor (1) 1,336,786
2,600 Kyphon (1) 121,186
54,600 Luminex (1) 756,210
50,400 MannKind (1) 732,816
45,300 Medicis Pharmaceutical Class A 1,377,120
11,900 Molina Healthcare (1) 359,618
62,700 Nastech Pharmaceutical (1) 827,013
210,000 Perrigo 3,990,000
50,800 PolyMedica 2,054,352
56,700 Psychiatric Solutions (1) 1,988,469
147,400 Salix Pharmaceuticals (1) 1,919,148
58,000 Sirona Dental Systems 1,914,580
172,800 Sun Healthcare Group (1) 2,166,912
81,938 Symbion (1) 1,796,081
--------------
34,692,721
MATERIALS & PROCESSING - 8.9%
24,600 Agnico-Eagle Mines 867,888
49,400 Airgas 2,200,770
33,100 Albany International Class A 1,267,730
34,800 FMC 2,677,164
36,300 Hexcel (1) 787,710
53,100 Infrasource Services (1) 1,772,478
93,100 Interface, Class A 1,568,735
81,900 Koppers Holdings 2,370,186
30,400 Mobile Mini (1) 911,088
57,600 Pan American Silver (1) 1,627,200
52,300 Perini (1) 2,227,980
56,300 Schnitzer Steel Industries Class A 2,922,533
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 39
- --------------------------------------------------------------------------------
SCHRODER U.S. OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
71,900 Senomyx (1) 968,493
77,400 Shaw Group (1) 2,510,082
69,409 ShawCor 1,845,944
--------------
26,525,981
OTHER - 0.7%
45,800 Macquarie Infrastructure 1,950,164
--------------
OTHER ENERGY - 5.8%
31,305 Birchcliff Energy (1) 128,369
18,100 CARBO Ceramics 786,445
46,238 Denbury Resources (1) 1,530,015
161,900 Dresser-Rand Group (1) 5,166,229
38,000 FMC Technologies (1) 2,693,440
89,419 Galleon Energy Class A (1) 1,305,505
72,600 Hanover Compressor (1) 1,570,338
21,000 Ormat Technologies 766,290
61,700 St. Mary Land & Exploration 2,259,454
47,946 Willbros Group (1) 1,134,402
--------------
17,340,487
PRODUCER DURABLES - 4.4%
130,100 ACCO Brands (1) 3,096,380
25,400 Actuant Class A 1,346,200
125,800 Arris Group (1) 1,864,356
25,300 IDEX 1,327,491
24,800 Manitowoc 1,692,104
116,000 MTC Technologies (1) 2,396,560
50,500 Tektronix 1,484,195
--------------
13,207,286
TECHNOLOGY - 15.6%
60,300 CommScope (1) 2,812,995
150,400 Cray (1) 1,872,480
49,300 CSG Systems International (1) 1,320,254
20,500 DRS Technologies 1,031,355
223,300 Emulex (1) 4,684,834
26,000 F5 Networks (1) 1,996,280
71,100 FEI (1) 2,644,920
369,400 Finisar (1) 1,337,228
106,300 Gartner (1) 2,681,949
113,200 Genesis Microchip (1) 971,256
115,800 GSI Technology (1) 625,320
301,000 Informatica (1) 4,430,720
70,200 Integrated Device Technology (1) 1,051,596
37,400 Intermec (1) 835,142
81,000 IPG Photonics (1) 1,473,390
43,200 Mantech International Class A (1) 1,325,376
121,400 Microsemi (1) 2,805,554
108,500 Online Resources (1) 1,197,840
149,260 Parametric Technology (1) 2,652,350
101,000 RightNow Technologies (1) 1,500,860
220,800 SonicWALL (1) 1,801,728
119,800 TAC Acquisition (1) 12
44,977 Technology Investment Capital 760,561
10,900 Varian (1) 631,764
Shares Value $
------ -------
80,900 Veeco Instruments (1) 1,478,852
164,700 Volterra Semiconductor (1) 2,603,907
--------------
46,528,523
UTILITIES - 2.9%
47,200 Consolidated Communications
Holdings 938,808
76,900 Eschelon Telecom (1) 2,252,401
23,800 ITC Holdings 1,001,504
37,400 Paetec Holdings (1) 390,082
43,350 PNM Resources 1,411,043
65,300 Time Warner Telecom Class A (1) 1,338,650
38,200 Unisource Energy 1,467,262
--------------
8,799,750
--------------
TOTAL COMMON STOCK
(Cost $211,232,000) 253,748,135
--------------
INVESTMENT COMPANY - 2.3%
86,800 iShares Russell 2000 Index Fund 7,008,232
--------------
TOTAL INVESTMENT COMPANY
(Cost $6,692,207) 7,008,232
--------------
Principal
Amount $
---------
SHORT-TERM INVESTMENT - 12.5%
37,200,662 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 4.80% 37,200,662
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $37,200,662) 37,200,662
--------------
TOTAL
INVESTMENTS - 99.7%
(Cost $255,124,869) 297,957,029
--------------
OTHER ASSETS LESS
LIABILITIES - 0.3% 815,388
--------------
NET ASSETS - 100.0% $ 298,772,417
==============
(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, 2007, the value of this
security amounted to $579,443, representing 0.2% of the net assets of the
Fund.
(4) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
ADR -- American Depositary Receipts
REIT -- Real Estate Investment Trust
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 40
- --------------------------------------------------------------------------------
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 91.2%
AUTO & TRANSPORTATION - 1.9%
1,700 JB Hunt Transport Services 46,002
4,200 Wabtec 156,030
--------------
202,032
CONSUMER DISCRETIONARY - 15.3%
2,500 Cheesecake Factory (1) 69,000
2,300 Claire's Stores 74,911
2,100 Corporate Executive Board 133,644
1,550 Corrections Corp. of America (1) 88,040
1,500 Heidrick & Struggles
International (1) 70,770
1,100 Lamar Advertising Class A (1) 66,374
900 Meredith 52,128
1,800 Regis 68,814
3,000 Republic Services 83,790
1,900 Ritchie Brothers Auctioneers 112,252
2,400 Ross Stores 79,560
5,100 Scientific Games Class A (1) 169,779
5,500 Talbots 129,250
11,700 VeriSign (1) 319,995
2,300 Watson Wyatt Worldwide Class A 108,399
--------------
1,626,706
CONSUMER STAPLES - 1.1%
5,300 Constellation Brands Class A (1) 118,773
--------------
FINANCIAL SERVICES - 12.3%
600 AllianceBernstein Holding LP 54,576
1,700 Bank of Hawaii 89,930
2,200 Checkfree (1) 74,052
4,600 Cullen/Frost Bankers 235,382
500 Dun & Bradstreet 45,150
2,800 Global Payments 106,344
1,300 Health Care REIT 58,812
4,000 Max Re Capital 107,200
4,400 Reinsurance Group of America 274,164
1,100 SVB Financial Group (1) 56,342
2,102 UDR REIT 63,144
3,000 Westamerica Bancorporation 140,490
--------------
1,305,586
HEALTH CARE - 14.5%
4,700 Advanced Medical Optics (1) 190,021
2,400 Amylin Pharmaceuticals (1) 99,192
5,500 Barr Pharmaceuticals (1) 265,980
500 Bausch & Lomb 29,415
4,600 DaVita (1) 251,206
2,300 Gen-Probe (1) 117,553
1,900 Invitrogen (1) 124,393
2,300 Medicis Pharmaceutical Class A 69,920
Shares Value $
------ -------
1,900 Millipore (1) 140,277
2,100 Psychiatric Solutions (1) 73,647
1,200 Techne (1) 70,764
1,800 Universal Health Services Class B 109,296
--------------
1,541,664
MATERIALS & PROCESSING - 9.1%
2,300 Albemarle 97,635
700 Fluor 66,934
1,400 FMC 107,702
500 IPSCO 73,925
2,900 Jacobs Engineering Group (1) 146,247
2,600 Lubrizol 155,844
900 Meridian Gold (1) 22,725
3,600 Pan American Silver (1) 101,700
3,000 SAIC (1) 54,870
5,300 ShawCor 140,954
--------------
968,536
OTHER - 0.5%
900 ITT 57,429
--------------
OTHER ENERGY - 9.6%
3,400 Cameron International (1) 219,538
2,700 Denbury Resources (1) 89,343
9,700 Dresser-Rand Group (1) 309,527
6,200 Range Resources 226,610
6,000 Stone Energy (1) 177,780
--------------
1,022,798
PRODUCER DURABLES - 4.5%
4,400 ACCO Brands (1) 104,720
2,300 Dover 110,676
2,100 IDEX 110,187
5,400 Tektronix 158,706
--------------
484,289
TECHNOLOGY - 16.2%
3,200 Adtran 81,440
8,300 Amdocs (1) 305,025
1,600 Amphenol Class A 56,176
3,400 CommScope (1) 158,610
1,700 DRS Technologies 85,527
13,600 Emulex (1) 285,328
3,500 Harris 179,725
6,700 Integrated Device Technology (1) 100,366
6,500 Intersil Class A 193,635
2,800 IPG Photonics (1) 50,932
7,200 Parametric Technology (1) 127,944
2,900 QLogic (1) 51,852
900 Varian (1) 52,164
--------------
1,728,724
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 41
- --------------------------------------------------------------------------------
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
UTILITIES - 6.2%
10,300 Citizens Communications 160,371
9,800 CMS Energy (1) 181,496
9,000 Sierra Pacific Resources (1) 164,340
7,300 Time Warner Telecom Class A (1) 149,650
--------------
655,857
--------------
TOTAL COMMON STOCK
(Cost $8,768,736) 9,712,394
--------------
Principal
Amount $
---------
SHORT-TERM
INVESTMENT - 9.9%
1,056,915 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 4.80% 1,056,915
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $1,056,915) 1,056,915
--------------
TOTAL
INVESTMENTS - 101.1%
(Cost $9,825,651) 10,769,309
--------------
OTHER ASSETS
LESS LIABILITIES - (1.1)% (114,171)
--------------
NET ASSETS - 100.0% $ 10,655,138
==============
(1) Denotes non-income producing security.
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 42
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL ALPHA FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 95.5%
BRAZIL - 2.5%
14,702 Unibanco - Uniao de Bancos
Brasileiros ADR 1,426,976
--------------
CANADA - 3.8%
29,876 Nova Chemicals 988,148
14,393 Suncor Energy 1,155,098
--------------
2,143,246
CHINA - 1.8%
1,896,000 Dongfeng Motor Group
Class H 1,008,462
--------------
DENMARK - 1.5%
18,215 Danske Bank (1) 850,701
--------------
FRANCE - 12.4%
21,417 AXA 983,225
12,205 Cie de Saint-Gobain (1) 1,303,103
8,153 Groupe Danone 1,340,367
41,460 Natixis 1,130,891
6,036 Societe Generale 1,279,032
18,440 Suez 1,050,803
--------------
7,087,421
GERMANY - 5.0%
8,657 Deutsche Bank 1,327,759
12,392 Siemens 1,494,995
--------------
2,822,754
GREECE - 1.7%
17,556 National Bank of Greece 983,292
--------------
HONG KONG - 2.9%
1,118,000 China Unicom 1,625,769
--------------
INDONESIA - 2.3%
2,265,000 Bank Rakyat Indonesia 1,296,108
--------------
ITALY - 3.6%
68,482 Bulgari 1,046,257
120,781 Intesa Sanpaolo 1,011,919
--------------
2,058,176
JAPAN - 13.5%
291,000 Ebara 1,497,726
20,200 Honda Motor 693,938
4,910 ORIX 1,309,470
26,800 Sony 1,425,446
44,900 Square Enix 1,146,411
114 Sumitomo Mitsui Financial Group 996,121
56,000 Takashimaya 657,669
--------------
7,726,781
Shares Value $
------ -------
MEXICO - 1.7%
18,928 America Movil ADR Series L 994,288
--------------
NETHERLANDS - 1.6%
17,445 Arcelor Mittal (1) 931,404
--------------
SINGAPORE - 2.1%
89,500 Jardine Strategic Holdings 1,202,698
--------------
SOUTH KOREA - 4.4%
34,930 Daewoo Shipbuilding &
Marine Engineering 1,410,150
55,099 LG.Philips LCD ADR (1) 1,113,551
--------------
2,523,701
SWITZERLAND - 9.6%
3,948 Nestle 1,562,953
7,963 Roche Holding 1,499,552
76,104 STMicroelectronics (1) 1,485,060
4,812 Syngenta (1) 955,948
--------------
5,503,513
UNITED KINGDOM - 25.1%
56,732 Barclays 818,942
108,097 BG Group 1,557,520
49,323 GlaxoSmithKline 1,422,494
48,539 Northern Rock 1,037,836
28,982 Rio Tinto 1,760,913
123,714 Rolls-Royce Group 1,178,377
7,323,869 Rolls-Royce Group, B Shares 14,937
33,672 Royal Bank of Scotland Group 1,289,130
63,805 SABMiller 1,508,083
315,517 Signet Group 774,665
57,995 Venture Production (1) 791,357
385,132 Vodafone Group 1,095,574
73,821 WPP Group 1,092,890
--------------
14,342,718
--------------
TOTAL COMMON STOCK
(Cost $48,781,965) 54,528,008
--------------
EQUITY-LINKED
WARRANTS (2) - 2.6%
INDIA - 2.6%
128,765 Satyam Computer Services,
Expires 10/13/10 (1) 1,484,193
--------------
TOTAL EQUITY-LINKED
WARRANTS
(Cost $1,149,801) 1,484,193
--------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 43
- --------------------------------------------------------------------------------
SCHRODER INTERNATIONAL ALPHA FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
SHORT-TERM INVESTMENT- 2.8%
1,576,168 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 4.80% 1,576,168
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $1,576,168) 1,576,168
--------------
TOTAL
INVESTMENTS - 100.9%
(Cost $51,507,934) 57,588,369
--------------
OTHER ASSETS
LESS LIABILITIES - (0.9)% (514,932)
--------------
NET ASSETS - 100.0% $ 57,073,437
==============
(1) Denotes non-income producing security.
(2) Securities are not readily marketable.
ADR -- American Depositary Receipts
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 44
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
COMMON STOCK - 84.4%
ARGENTINA - 2.0%
2,334 Pampa Holding GDR (1) 52,139
7,600 Telecom Argentina ADR 171,456
2,010 Tenaris ADR 93,184
--------------
316,779
BRAZIL - 8.5%
6,400 All America Latina Logistica 75,516
4,145,800 Brasil Telecom Participacoes 87,645
1,092 Brasil Telecom Participacoes ADR 57,909
1,600 Cia de Bebidas das
Americas ADR (1) 93,472
2,390 Cia Energetica de Minas
Gerais ADR 123,969
900 Cia Vale do Rio Doce ADR 36,549
1,540 Empresa Brasileira de
Aeronautica ADR (1) 72,241
5,000 Petroleo Brasileiro ADR 446,100
2,200 Submarino (1) 79,704
2,300 Unibanco - Uniao de Bancos
Brasileiros ADR 223,238
1,398 Usinas Siderurgicas de
Minas Gerais (1) 77,667
--------------
1,374,010
CHINA - 5.6%
11,000 China Citic Bank Class H (1) 9,239
415,000 China Construction Bank Class H 251,156
23,000 China Merchants Bank Class H 55,973
40,000 China Petroleum & Chemical
Class H 34,879
166,000 Dongfeng Motor Group Class H 88,293
75,200 Guangdong Electric Power
Development (1) 74,985
170,000 Jiangsu Express Class H 144,244
41,000 Ping An Insurance Group Class H 216,773
32,000 Tingyi Cayman Islands Holding 31,662
--------------
907,204
COLOMBIA - 0.8%
4,538 BanColombia ADR 127,336
--------------
EGYPT - 2.2%
5,850 Commercial International
Bank GDR (1) 60,764
827 Orascom Construction
Industries GDR (1) 95,152
72,194 Telecom Egypt 202,487
--------------
358,403
HONG KONG - 5.9%
24,000 Beijing Enterprises Holdings 61,958
70,000 China Mengniu Dairy 212,235
33,000 China Mobile 297,232
Shares Value $
------ -------
286,000 CNOOC 245,653
60,000 COSCO Pacific 145,131
--------------
962,209
HUNGARY - 2.6%
1,242 MOL Hungarian Oil and Gas (1) 151,397
2,610 OTP Bank GDR (1) 271,179
--------------
422,576
INDIA - 2.3%
1,700 ICICI Bank ADR (1) 69,564
2,500 Infosys Technologies ADR 130,875
5,550 Mahindra & Mahindra GDR (1) 104,789
900 Reliance Industries GDR (2) 68,670
--------------
373,898
INDONESIA - 1.4%
257,000 Bank Rakyat Indonesia 147,064
21,000 Semen Gresik Persero (1) 88,215
--------------
235,279
MALAYSIA - 2.5%
49,400 Bumiputra-Commerce Holdings 154,991
20,850 IJM (1) 52,827
25,600 SP Setia 61,556
39,200 Tenaga Nasional 130,089
--------------
399,463
MEXICO - 3.4%
6,666 America Movil ADR Series L 350,165
10,005 Banco Compartamos (1) 50,611
3,300 Cemex ADR (1) 107,250
25,000 Consorcio (1) 40,868
--------------
548,894
PERU - 0.6%
500 Cia de Minas Buenaventura ADR 16,290
710 Credicorp 37,048
500 Southern Copper 40,150
--------------
93,488
PHILIPPINES - 0.7%
135,000 Aboitiz Equity Ventures (1) 25,735
118,200 Ayala Land 43,124
103,600 Robinsons Land 39,728
--------------
108,587
POLAND - 1.8%
176 Bank BPH (1) 62,078
1,348 Bank Pekao 126,566
1,496 Central European Distribution (1) 44,506
3,967 Polski Koncern Naftowy Orlen 64,640
--------------
297,790
RUSSIA - 12.5%
5,400 LUKOIL ADR 432,000
600 MMC Norilsk Nickel ADR 117,059
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 45
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
3,100 Mobile Telesystems ADR 170,810
2,394 NovaTek GDR 123,143
14,443 OAO Gazprom ADR 564,847
736 Sberbank GDR 369,921
7,622 Severstal GDR (1) 104,422
3,294 Sistema GDR 93,714
600 Vimpel-Communications ADR (1) 58,056
--------------
2,033,972
SOUTH AFRICA - 5.8%
407 Anglo Platinum 65,749
10,776 Aveng (1) 73,556
27,351 FirstRand 97,277
4,592 Gold Fields 82,586
3,243 Impala Platinum Holdings (1) 105,198
6,109 MTN Group 89,663
3,814 Naspers N Shares 96,274
8,708 Raubex Group (1) 29,474
4,029 Sasol 138,711
7,260 Standard Bank Group 113,696
1,900 Telkom 46,660
--------------
938,844
SOUTH KOREA - 14.8%
5,500 Daegu Bank 90,401
1,379 Daelim Industrial 161,109
1,139 GS Engineering & Construction 112,971
2,930 GS Holdings 132,822
1,410 Hyundai Department Store 144,335
944 Hyundai Motor 59,723
3,529 Kookmin Bank ADR 316,975
2,090 LG Chem 121,650
1,670 LG.Philips LCD (1) 67,905
326 POSCO 136,758
281 Samsung Electronics 171,904
1,510 Samsung Electronics GDR (2) 460,111
826 Samsung Fire & Marine Insurance 146,466
720 Shinhan Financial Group 40,546
1,000 Shinhan Financial Group ADR 112,160
185 Shinsegae 125,919
--------------
2,401,755
TAIWAN - 6.6%
5,300 AU Optronics ADR 84,323
7,091 Cathay Financial Holding GDR 144,308
154 China Steel GDR 3,495
4,982 Chunghwa Telecom ADR 99,142
23,064 HON HAI Precision
Industry GDR 306,684
40,249 Taiwan Semiconductor
Manufacturing ADR 424,224
--------------
1,062,176
THAILAND - 2.7%
35,400 Bangkok Bank 114,029
9,800 Banpu NVDR (1) 60,118
1,800 Banpu (1) 11,042
Shares Value $
------ -------
33,800 Siam Commercial Bank (1) 65,655
97,200 Thai Oil (1) 181,923
--------------
432,767
TURKEY - 1.7%
5,854 Arcelik 43,199
24,570 Haci Omer Sabanci Holding 107,934
10,446 Turkiye Garanti Bankasi 50,619
16,779 Turkiye Is Bankasi Class C 79,320
--------------
281,072
--------------
TOTAL COMMON STOCK
(Cost $11,309,487) 13,676,502
--------------
PREFERRED STOCK - 6.4%
BRAZIL - 6.0%
3,400 Bradespar (1) 111,578
9,300 Cia Vale do Rio Doce ADR 317,967
24,081 Investimentos Itau 131,417
1,366,900 Lojas Americanas 86,705
4,300 Ultrapar Participacoes (1) 132,995
2,000 Usinas Siderurgicas de
Minas Gerais Class A 93,412
10,700 Weg (1) 88,167
--------------
962,241
RUSSIA - 0.4%
900 Surgutneftegaz ADR 68,850
--------------
TOTAL PREFERRED STOCK
(Cost $786,502) 1,031,091
--------------
EQUITY-LINKED
WARRANTS (3) - 4.0%
SOUTH KOREA - 0.6%
143 Shinsegae, Expires 1/10/08 (1) 94,379
--------------
TAIWAN - 3.4%
13,080 Catcher Technology,
Expires 11/29/10 (1) 100,508
134,685 Chinatrust Financial Holding,
Expires 01/29/09 (1) (2) 106,132
102,689 Far Eastern Textile,
Expires 03/10/10 (1) 93,857
76,804 Formosa Chemicals & Fibre,
Expires 4/18/08 (1) 142,932
779 Largan Precision,
Expires 02/12/09 (1) 8,804
2,467 Largan Precision,
Expires 08/13/07 (1) 27,882
16,172 Novatek Microelectronics,
Expires 11/02/09 (1) 80,094
--------------
560,209
--------------
TOTAL EQUITY-LINKED
WARRANTS
(Cost $619,637) 654,588
--------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 46
- --------------------------------------------------------------------------------
SCHRODER EMERGING MARKET EQUITY FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Shares Value $
------ -------
INDEX-LINKED
WARRANTS (3) - 3.9%
INDIA - 1.7%
2,317 MSCI Daily Total Return Net
Emerging Markets India Local,
Expires 8/17/07 (1) 20,366
478 MSCI Daily Total Return Net
Emerging Markets India USD,
Expires 4/20/08 (1) (2) (4) 197,775
122 MSCI Daily Total Return Net
Emerging Markets India USD,
Expires 10/25/07 (1) (2) 51,047
--------------
269,188
MALAYSIA - 0.5%
1,250 MSCI Daily Total Return
Malaysia Local,
Expires 03/16/08 (1) (4) 88,250
--------------
SUPRANATIONAL - 0.9%
418 MSCI Daily Total Return Net
Emerging Markets,
Expires 5/18/07 (1) (4) 141,583
--------------
TURKEY - 0.8%
275 MSCI Daily Total Return Net
Emerging Markets Turkey USD,
Expires 9/28/07 (1) (4) 66,310
258 MSCI Daily Total Return Net
Emerging Markets Turkey USD,
Expires 10/15/08 (1) (2) (4) 62,210
--------------
128,520
--------------
TOTAL INDEX-LINKED
WARRANTS
(Cost $565,880) 627,541
--------------
RIGHTS - 0.0%
BRAZIL - 0.0%
24,081 Investimentos Itau,
Expires 06/06/07 (1) 326
--------------
TOTAL RIGHTS
(Cost $0) 326
--------------
Principal
Amount $ Value $
--------- -------
SHORT-TERM INVESTMENT - 3.6%
583,769 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 4.80% 583,769
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $583,769) 583,769
--------------
TOTAL
INVESTMENTS - 102.3%
(Cost $13,865,275) 16,573,817
--------------
OTHER ASSETS LESS
LIABILITIES - (2.3)% (373,446)
--------------
NET ASSETS - 100.0% $ 16,200,371
==============
(1) Denotes non-income producing security.
(2) Security 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, 2007, the
value of these securities amounted to $945,945, representing 5.8% of the
net assets of the Fund.
(3) Securities are not readily marketable.
(4) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
ADR -- American Depositary Receipts
GDR -- Global Depositary Receipts
MSCI -- Morgan Stanley Capital International
NVDR -- New Vehicle Delivery Receipt
USD -- United States Dollar
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 47
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 42.2%
1,451,737 American Home Mortgage Assets,
Series 2006-2, Class 1A1 (1)
5.974%, 9/25/46 1,451,737
2,042,227 American Home Mortgage
Investment Trust, Series 2005-1,
Class 1A1 (1)
5.540%, 6/25/45 2,048,540
186,555 American Home Mortgage
Investment Trust, Series 2005-SD1,
Class 2A1 (1) (2)
5.820%, 11/25/25 187,087
908,659 American Home Mortgage
Investment Trust, Series 2006-2,
Class 4A (1)
5.500%, 2/25/36 909,466
288,042 Banc of America Mortgage Securities,
Series 2003-K, Class 2A2 (1)
4.473%, 12/25/33 288,339
365,939 Bayview Commercial Asset Trust,
Series 2004-3, Class A1 (1) (2)
5.690%, 1/25/35 366,682
636,170 Bear Stearns Alternative Trust,
Series 2004-3, Class A1 (1)
5.640%, 4/25/34 636,732
512,315 Citigroup Mortgage Loan Trust,
Series 2003-UP3, Class A1
7.000%, 9/25/33 526,285
595,636 Citigroup Mortgage Loan Trust,
Series 2003-UP3, Class A2
7.000%, 9/25/33 611,890
915,777 Citigroup Mortgage Loan Trust,
Series 2004-2, Class 1A2 (2)
9.250%, 8/25/33 951,055
576,122 Citigroup Mortgage Loan Trust,
Series 2005-1, Class 3A1
6.500%, 4/25/35 584,291
396,401 Countrywide Alternative Loan Trust,
Series 2005-14, Class 2A1 (1)
5.530%, 5/25/35 396,850
1,961,133 Countrywide Alternative Loan Trust,
Series 2005-51, Class 3A2A (1)
6.304%, 11/20/35 1,971,527
1,855,956 Countrywide Alternative Loan Trust,
Series 2005-56, Class 2A3 (1)
6.514%, 11/25/35 1,865,960
1,477,919 Countrywide Alternative Loan Trust,
Series 2005-65CB, Class 1A7
5.500%, 1/25/36 1,479,363
85,484 Countrywide Alternative Loan Trust,
Series 2005-J4, Class 1A1 (1)
5.610%, 7/25/35 85,593
282,756 Countrywide Alternative Loan Trust,
Series 2005-J4, Class 1A4 (1)
5.660%, 7/25/35 283,983
Principal
Amount $ Value $
--------- -------
892,819 Countrywide Alternative Loan Trust,
Series 2006-HY12, Class A4 (1)
5.700%, 8/25/36 894,365
2,575,181 Countrywide Alternative Loan Trust,
Series 2006-J1, Class 1A6
5.500%, 2/25/36 2,577,510
984,284 Countrywide Alternative Loan Trust,
Series 2006-OA10, Class 1A1 (1)
5.974%, 8/25/46 984,284
454,756 Countrywide Home Loans,
Series 2005-11, Class 4A1 (1)
5.590%, 4/25/35 455,975
1,281,796 Deutsche Alt-A Securities,
Series 2006-AB1, Class A2A (1)
5.500%, 2/25/36 1,276,096
1,695,321 Greenpoint Mortgage Funding Trust,
Series 2005-AR5, Class 4A1 (1)
7.014%, 11/25/45 1,723,930
1,178,876 Harborview Mortgage Loan Trust,
Series 2005-12, Class 2A11 (1)
7.014%, 10/19/35 1,200,999
259,211 Impac CMB Trust, Series 2004-1,
Class A1 (1)
5.980%, 3/25/34 260,814
1,490,327 Impac CMB Trust, Series 2005-1,
Class 1A1 (1)
5.580%, 4/25/35 1,491,552
1,419,242 Impac CMB Trust, Series 2005-3,
Class A1 (1)
5.560%, 8/25/35 1,422,957
490,910 Impac CMB Trust, Series 2005-4,
Class 1A2 (1)
5.660%, 5/25/35 491,911
253,315 Impac Secured Assets, Series 2005-2,
Class A1M (1)
5.710%, 3/25/36 254,472
1,576,752 Indymac Index Mortgage Loan Trust,
Series 2006-AR9, Class 3A1 (1)
6.012%, 6/25/36 1,584,902
24,186,094 Lehman Brothers Small Balance
Commercial IO, Series 2005-1A,
Class A (2) (3) (8)
0.850%, 2/25/30 396,803
272,883 Master Adjustable Rate Mortgages
Trust, Series 2004-9, Class 2A1 (1)
5.700%, 11/25/34 273,930
37,289 Master Resecuritization Trust,
Series 2006-1CI, Class N1 (2)
5.750%, 7/25/35 37,006
393,572 Master Specialized Loan Trust,
Series 2006-2, Class A (1) (2)
5.580%, 2/25/36 393,381
416 Novastar NIM Trust,
Series 2005-N1 (2)
4.777%, 10/26/35 415
791,212 Residential Accredit Loans,
Series 2005-Q01, Class A2 (1)
6.514%, 8/25/35 794,766
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 48
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
2,319,846 Residential Accredit Loans,
Series 2005-Q02, Class A1 (1)
6.374%, 9/25/45 2,335,459
1,284,063 Residential Accredit Loans,
Series 2005-QS12, Class A3
5.500%, 8/25/35 1,285,612
134,752 Structured Adjustable Rate
Mortgage, Series 2005-19X1,
Class A1 (2)
5.400%, 10/28/10 133,952
20,470 Structured Adjustable Rate Mortgage,
Series 2005-19X2, Class A1 (2)
4.000%, 10/28/10 20,432
2,107,295 Structured Asset Mortgage
Investments, Series 2005-AR7,
Class 5A1 (1)
6.474%, 3/25/46 2,110,917
2,559,273 Structured Asset Mortgage
Investments, Series 2005-AR8,
Class A2 (1)
6.494%, 2/25/36 2,586,865
670,019 Structured Asset Securities,
Series 2005-GEL2, Class A (1)
5.600%, 4/25/35 669,775
560,000 Wachovia Bank Commercial
Mortgage Trust, Series 2002-WHL,
Class L (1) (2)
8.320%, 3/15/15 559,667
1,254,710 Washington Mutual,
Series 2005-AR13,
Class A1A2 (1)
6.464%, 10/25/45 1,258,484
2,028,376 Washington Mutual,
Series 2006-AR5,
Class A1A (1)
6.004%, 6/25/46 2,032,575
582,580 Washington Mutual,
Series 2006-AR7,
Class 1A (1)
5.994%, 7/25/46 582,124
549,056 Washington Mutual,
Series 2006-AR7,
Class 2A (1)
5.994%, 7/25/46 549,849
1,652,174 Wells Fargo Mortgage-Backed
Securities, Series 2006-AR10,
Class 5A2 (1)
5.601%, 7/25/36 1,654,904
459,467 WMALT Mortgage Pass-Through
Certificates, Series 2005-5,
Class CB1 (1)
5.500%, 7/25/35 458,988
--------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $47,696,381) 47,401,051
--------------
Principal
Amount $ Value $
--------- -------
COMMERCIAL PAPER (5) - 22.6%
5,000,000 AIG
5.256%, 5/09/07 4,994,189
5,000,000 American General Finance
5.226%, 5/01/07 5,000,000
5,500,000 Citicorp
5.270%, 5/14/07 5,489,573
5,000,000 General Electric Capital
5.272%, 5/18/07 4,987,627
5,000,000 Toyota Motor Credit
5.256%, 5/03/07 4,998,546
--------------
TOTAL COMMERCIAL
PAPER
(Cost $25,469,935) 25,469,935
--------------
MORTGAGE-BACKED
OBLIGATIONS - 15.8%
708,740 AAA Trust, Series 2005-1A,
Class 2A1 (1) (2)
5.600%, 2/27/35 709,880
84,630 Aames Mortgage Trust,
Series 2002-2, Class B (3) (4)
6.770%, 3/25/33 82,335
167,040 Ace Securities, Series 2004-FM1,
Class M2 (1)
7.195%, 9/25/33 167,324
316,323 Aegis Asset-Backed Securities Trust,
Series 2005-1, Class 1A2 (1)
5.570%, 3/25/35 316,572
205,000 Ameriquest Mortgage Securities,
Series 2003-AR1, Class M3 (1) (3)
7.535%, 1/25/33 205,601
40,121 Asset-Backed Funding Certificates,
Series 2003-OPT1, Class M3 (1)
7.220%, 9/25/32 40,284
868,435 Bayview Commercial Asset Trust,
Series 2005-3A, Class A1 (1) (2)
5.640%, 11/25/35 871,692
756,644 Bear Stearns Asset-Backed Securities,
Series 2006-SD4, Class 3A1 (1)
5.994%, 10/25/36 757,117
552,846 CDC Mortgage Capital Trust,
Series 2003-HE3, Class M2 (1)
7.070%, 11/25/33 554,859
48,418 Chase Funding Loan Acquisition
Trust, Series 2003-C1,
Class 2M1 (1)
6.295%, 11/25/32 48,475
55,000 Countrywide Asset-Backed
Certificates, Series 2005-17,
Class 4A2A (1)
5.580%, 5/25/36 55,085
79,847 Countrywide Asset-Backed
Certificates, Series 2006-11,
Class 1AF1 (1)
5.440%, 9/25/46 79,897
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 49
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
70,102 Countrywide Asset-Backed
Certificates, Series 2006-SD2,
Class 2A1A (1) (2)
5.490%, 11/25/36 70,102
518,784 Countrywide Asset-Backed
Securities, Series 2006-QH1,
Class A1A (1) (2)
5.520%, 9/25/36 519,107
252,275 First National Loan Corporation
Trust, Series 2005-1, Class M2 (1)
5.750%, 5/25/35 252,275
54,733 Fremont NIM Trust,
Series 2005-B (2) (3) (8)
5.500%, 4/25/35 32,840
263,259 Fremont NIM Trust,
Series 2006-B (1) (2)
5.770%, 9/25/11 262,272
460,000 GMAC Mortgage Corporation Loan
Trust, Series 2004-HE2,
Class M1 (1)
3.950%, 10/25/33 453,593
979,106 Greenpoint Mortgage Funding Trust,
Series 2006-HE1, Class AX (1)
5.490%, 3/12/37 979,199
240,883 GRMT Mortgage Loan Trust,
Series 2001-1A, Class A5 (2)
6.650%, 7/20/31 240,350
211,137 GSAMP Trust, Series 2006-HE4A,
Class N1 (2)
5.750%, 6/25/36 204,803
24,858 Home Equity Asset Trust,
Series 2003-1, Class M3 (1)
7.920%, 6/25/33 24,912
66,640 Home Equity Asset Trust,
Series 2003-3, Class B1 (1) (3)
8.820%, 8/25/33 10,095
1,005,000 Impac Secured Assets Corporation,
Series 2006-3, Class A5M (1)
5.520%, 11/25/36 1,005,643
1,422,402 Indymac Index Mortgage Loan
Trust, Series 2006-AR13,
Class A1 (1)
6.093%, 7/25/36 1,430,110
512,772 Indymac NIM Trust,
Series 2006-E, Class A (1) (2)
5.770%, 12/25/13 507,644
53,208 Lake Country Mortgage Loan
Trust, Series 2005-HE1,
Class A1 (1) (2)
5.520%, 12/25/32 53,241
575,000 Lake Country Mortgage Loan
Trust, Series 2005-HE1,
Class A2 (1) (2)
5.700%, 12/25/32 575,197
Principal
Amount $ Value $
--------- -------
88,726 Master Alternative NIM,
Series 2006-2, Class N1 (2) (3) (8)
7.500%, 12/25/35 87,927
13,231 Master Asset-Backed Securities
NIM Trust, Series 2005-C10A,
Class N1 (2)
4.750%, 5/26/35 12,991
1,448 Master Asset-Backed Securities
NIM Trust, Series 2005-CI9A,
Class N1 (2)
4.940%, 3/26/35 1,443
61,751 Master Asset-Backed Securities
NIM Trust, Series 2005-OPT1 (1) (2)
5.420%, 5/26/10 61,751
19,456 Master Asset-Backed Securities
NIM Trust, Series 2006-C15A,
Class N1 (2)
6.280%, 1/26/36 18,735
4,869 Master Asset-Backed Securities
Trust, Series 2004-WMC3,
Class A2 (1)
5.680%, 10/25/34 4,872
20,228 Option One Mortgage Loan
Trust, Series 2002-3, Class M2 (1)
7.015%, 8/25/32 20,261
8,454 Option One Mortgage Loan
Trust, Series 2002-3, Class M3 (1) (3)
8.095%, 8/25/32 6,956
184,001 Option One Mortgage Loan
Trust, Series 2003-1, Class M2 (1)
7.270%, 2/25/33 184,245
41,254 Option One Mortgage Loan
Trust, Series 2003-3, Class M2 (1)
6.920%, 6/25/33 41,539
580,441 Provident Bank Home Equity
Loan Trust, Series 1999-3,
Class A3 (1)
5.710%, 1/25/31 581,028
32,657 Residential Asset Securities,
Series 2003-KS8, Class MII2 (1)
6.820%, 10/25/33 27,889
25,366 SB Finance NIM Trust,
Series 2006-AR6N, Class N1 (2)
6.000%, 8/25/36 25,080
270,580 SB Finance NIM Trust,
Series 2006-NC1 (2)
6.500%, 8/25/36 267,325
184,349 Sharps SP I LLC NIM Trust,
Series 2005-AS1N,
Class NA (2) (3) (8)
7.380%, 9/25/35 156,697
34,640 Sharps SP I LLC NIM Trust,
Series 2005-HE4N, Class N (2)
5.250%, 7/25/35 18,061
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 50
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
43,184 Sharps SP I LLC NIM Trust,
Series 2005-HE6N,
Class N (2) (3) (8)
7.250%, 10/25/35 30,229
92,330 Sharps SP I LLC NIM Trust,
Series 2006-HE2M, Class NA (2)
6.150%, 5/25/36 69,247
182,660 Sharps SP I LLC NIM Trust,
Series 2006-HE3,
Class NA (2) (3) (8)
6.400%, 6/25/36 91,330
206,869 Soundview Home Equity Loan
Trust, Series 2003-2, Class A2 (1)
5.970%, 11/25/33 208,346
1,300,000 Soundview Home Equity Loan
Trust, Series 2006-WF1,
Class A2 (4)
5.645%, 10/25/36 1,297,672
1,573,991 Structured Asset Securities
Corporation, Series 2002-RM1,
Class A (1) (2)
5.970%, 10/25/37 1,579,894
287,403 Terwin Mortgage Trust,
Series 2006-4SL, Class A1 (1) (2)
4.500%, 5/25/37 284,872
2,152,692 Wells Fargo Mortgage-Backed
Securities, Series 2005-AR9,
Class 2A1 (1)
4.363%, 5/25/35 2,135,903
--------------
TOTAL MORTGAGE-BACKED
OBLIGATIONS
(Cost $18,025,245) 17,724,797
--------------
U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS - 15.6%
FHLMC (1)
5,300,000 5.191%, 8/01/34 (7) 5,337,266
870,495 4.396%, 10/01/35 880,402
FNMA (1)
609,862 7.490%, 10/01/36 629,716
5,025,832 7.488%, 7/01/36 5,170,482
643,724 7.472%, 4/01/36 664,314
927,844 7.406%, 10/01/36 958,277
676,794 7.378%, 9/01/36 697,978
215,409 7.292%, 8/01/36 221,551
1,536,142 6.992%, 10/01/35 1,593,858
1,294,326 6.969%, 11/01/35 1,342,862
--------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $17,441,690) 17,496,706
--------------
Principal
Amount $ Value $
--------- -------
ASSET-BACKED SECURITIES - 3.7%
86,172 Amortizing Residential Collateral Trust,
Series 2002-BC1, Class M1 (1)
6.170%, 1/25/32 86,520
45,277 Amortizing Residential Collateral
Trust, Series 2002-BC10,
Class M2 (1)
9.070%, 1/25/33 44,335
42,576 Amortizing Residential Collateral
Trust, Series 2002-BC4,
Class M3 (1) (3)
7.220%, 7/25/32 30,082
36,697 Amortizing Residential Collateral
Trust, Series 2002-BC8,
Class M3 (1) (3)
8.320%, 11/25/32 33,982
428,924 Aspen Funding I, Ltd.,
Series 2002-1A, Class A1L (1) (2)
5.950%, 7/10/37 428,924
15,446 Countrywide Asset-Backed
Certificates, Series 2003-1,
Class B (1) (3)
8.820%, 9/25/32 15,469
200,379 Countrywide Asset-Backed
Certificates, Series 2003-1,
Class M1 (1)
6.070%, 4/25/33 200,592
109,095 Countrywide Asset-Backed
Certificates, Series 2003-3,
Class 3A (1)
5.590%, 11/25/33 109,199
136,206 Countrywide Asset-Backed
Certificates, Series 2004-11,
Class A2 (1)
5.700%, 3/25/33 136,360
152,953 Countrywide Asset-Backed
Certificates, Series 2004-SD3,
Class A2 (1) (2)
5.870%, 9/25/34 154,549
12,092 Countrywide Asset-Backed
Certificates, Series 2005-2N,
Class N (2) (3) (8)
4.500%, 8/25/36 11,352
480,000 Countrywide Asset-Backed
Certificates, Series 2005-5,
Class M4 (1)
6.120%, 10/25/35 479,429
112,351 Countrywide Asset-Backed
Certificates, Series 2005-9N,
Class N (2) (3) (8)
5.500%, 10/25/36 74,151
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 51
- --------------------------------------------------------------------------------
SCHRODER ENHANCED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
89,212 Countrywide Asset-Backed
Certificates, Series 2005-AB5N
(2) (3) (8)
6.000%, 12/29/36 86,285
396,731 Countrywide Home Equity Loan
Trust, Series 2003-C, Class A (1)
5.590%, 5/15/29 397,384
234,646 Credit Suisse First Boston
Mortgage Securities,
Series 2005-AGE1, Class A1 (1)
5.460%, 2/25/32 234,826
44,736 Fieldstone Mortgage Investment,
Series 2005-1, Class 1A2 (1)
5.610%, 3/25/35 44,770
24,546 First Franklin Mortgage Loan,Series
2003-FF1, Class M3F (3) (4) (6)
6.092%, 3/25/33 17,182
13,192 GSAMP Trust,
Series 2004-WFN (2) (3) (8)
5.000%, 10/25/34 12,796
247,731 Saco I Trust, Series 2005-2,
Class A (1) (2)
5.520%, 4/25/35 247,879
39,101 Saco I Trust, Series 2005-3,
Class A (1)
5.550%, 7/25/35 39,134
62,764 Structured Asset Investment
Loan Trust, Series 2003-BC1,
Class M2 (1)
7.170%, 1/25/33 62,746
103,560 Structured Asset Investment
Loan Trust, Series 2003-BC11,
Class M4 (1) (3)
8.320%, 10/25/33 96,013
46,730 Structured Asset Investment
Loan Trust, Series 2003-BC11,
Class M5 (1) (3) (6)
8.320%, 10/25/33 39,720
133,688 Structured Asset Investment Loan
Trust, Series 2003-BC2,
Class M1 (1)
6.700%, 4/25/33 133,857
160,000 Structured Asset Investment Loan
Trust, Series 2003-BC7,
Class M1 (1)
6.070%, 7/25/33 160,489
280,000 Structured Asset Investment Loan
Trust, Series 2004-1,
Class M4 (1) (3)
8.070%, 2/25/34 280,682
485,830 Wachovia Loan Trust,
Series 2005-SD1, Class A (1) (2)
5.680%, 5/25/35 485,516
--------------
TOTAL ASSET-BACKED
SECURITIES
(Cost $4,230,519) 4,144,223
--------------
Principal
Amount $ Value $
--------- -------
CORPORATE OBLIGATIONS - 1.2%
1,091,501 Lehman XS Trust,
Series 2006-12N, A1A1 (1)
5.400%, 8/25/46 1,092,355
300,000 Twin Reefs Pass-Through (1) (2)
6.320%, 12/10/09 300,989
--------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $1,391,614) 1,393,344
--------------
SHORT-TERM INVESTMENT - 3.3%
3,770,501 JPMorgan Chase Bank,
N.A. Time Deposit (Nassau),
4.80% 3,770,501
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $3,770,501) 3,770,501
--------------
TOTAL INVESTMENTS - 104.4%
(Cost $118,025,885) 117,400,557
--------------
OTHER ASSETS
LESS LIABILITIES - (4.4)% (5,001,016)
--------------
NET ASSETS - 100.0% $ 112,399,541
==============
(1) Variable Rate Security -- Rate disclosed is as of April 30, 2007.
(2) Security 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, 2007, the
value of these securities amounted to $11,601,631, representing 10.3% of
the net assets of the Fund.
(3) Security considered illiquid. On April 30, 2007, the value of these
securities amounted to $1,798,527, representing 1.6% of the net asets of
the Fund.
(4) Step Bond -- Coupon rate increases in increments to maturity. Rate
disclosed is as of April 30, 2007.
(5) The rate shown represents the security's effective yield at time of
purchase.
(6) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
(7) Security purchased on a when-issued basis.
(8) Security considered restricted. (See Note 2 in Notes to Financial
Statements.)
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
IO -- Interest Only Security -- principal amount represents notional amount.
LLC -- Limited Liability Company
Ltd. -- Limited
NIM -- Net Interest Margin
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 52
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Principal
Amount (a) Value $
---------- -------
U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS - 43.6%
FHLMC Gold TBA
4,225,000 6.000%, 5/15/37 4,259,328
3,300,000 5.500%, 5/15/37 3,262,875
2,200,000 5.000%, 5/15/37 2,125,750
5,000,000 FNMA TBA
5.000%, 5/25/22 4,928,125
--------------
TOTAL U.S.
GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $14,537,502) 14,576,078
--------------
U.S. TREASURY
OBLIGATIONS (6) - 40.0%
U.S. Treasury Bills (5)
6,850,000 5.099%, 5/03/07 6,848,301
1,625,000 4.942%, 5/31/07 1,618,650
1,645,000 4.883%, 7/26/07 1,626,431
3,145,000 U.S. Treasury Bond
5.125%, 5/15/16 3,259,620
20,000 U.S. Treasury Note
4.750%, 2/15/37 19,784
--------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $13,313,213) 13,372,786
--------------
FOREIGN BONDS - 32.0%
EUR 100,000 Anglo Irish Capital (1)
5.219%, 9/29/16 134,485
100,000 ATF Captial (4)
9.250%, 2/21/14 99,000
EUR 100,000 Banco Sabadell (1)
5.234%, 9/29/16 133,516
EUR 100,000 BBVA International (1)
4.952%, 9/29/16 133,325
100,000 Credit Suisse
8.000%, 2/22/10 100,791
EUR 100,000 Danske Bank MTN (1)
4.878%, 5/15/17 134,116
EUR 100,000 EFG Hellas Funding,
Series B (1)
4.565%, 11/02/15 128,863
EGP 950,000 Egypt Treasury Bill (2)
7.687%, 7/31/07 164,317
240,000 Export Import Bank of
Ukraine
7.650%, 9/07/11 248,289
EUR 100,000 German Treasury Bill (2)
3.725%, 6/13/07 135,855
EUR 100,000 Hellas II (3)
9.968%, 1/15/15 140,543
Principal
Amount (a) Value $
---------- -------
GBP 50,000 HSBC Bank Funding
MTN (1)
5.844%, 11/05/31 100,356
EUR 110,000 HT1 Funding (1)
6.352%, 6/30/17 158,228
IDR 3,000,000,000 Indonesia Government
10.000%, 7/15/17 338,049
JPY 676,300,000 Japan Series 282
1.700%, 9/20/16 5,725,877
100,000 Majapahit Holding
7.250%, 10/17/11 103,930
MYR 1,150,000 Malaysian Government
3.869%, 4/13/10 340,285
EUR 125,000 NXP Funding LLC (3)
6.718%, 10/15/13 174,187
PLZ 1,590,000 Poland Government Bond
6.250%, 10/24/15 610,219
100,000 Province of Buenos Aires
9.375%, 9/14/18 101,250
62,813 Republic of Argentina
Series V
7.000%, 3/28/11 63,237
BRL 500,000 Republic of Brazil
10.250%, 1/10/28 267,190
200,000 RSHB Capital
6.875%, 11/29/10 207,469
EUR 50,000 Russian Standard Bank
Finance
6.825%, 9/16/09 68,894
GBP 50,000 Saphir Finance (1)
6.851%, 7/04/16 100,639
EUR 100,000 Scor (1)
6.154%, 7/28/16 137,627
GBP 50,000 Standard Chartered Bank (1)
8.103%, 5/11/16 111,815
206,000 VTB Capital (3)
6.100%, 9/21/07 206,364
EUR 170,000 VTB Capital Series E, MTN (3)
4.488%, 3/13/09 232,418
EUR 70,000 VTB Capital Series E, MTN
4.250%, 2/15/16 93,541
--------------
TOTAL FOREIGN
BONDS
(Cost $10,573,535) 10,694,675
--------------
CORPORATE
OBLIGATIONS (6) - 20.5%
60,000 Activant Solutions
9.500%, 5/01/16 59,700
140,000 Adaro Finance
8.500%, 12/08/10 146,604
20,000 Advanced Medical Optics (4)
7.500%, 5/01/17 20,700
100,000 Agile Property Holdings (4)
9.000%, 9/22/13 106,250
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 53
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount (a) Value $
---------- -------
25,000 AGY Holdings (4)
11.000%, 11/15/14 26,344
100,000 Ahern Rentals
9.250%, 8/15/13 104,750
50,000 AK Steel
7.750%, 6/15/12 51,875
65,000 Aleris International (4)
10.000%, 12/15/16 68,169
90,000 Allis-Chalmers Energy
9.000%, 1/15/14 93,150
25,000 American Railcar (4)
7.500%, 3/01/14 26,031
50,000 Americast Technologies (4)
11.000%, 12/01/14 50,875
100,000 Ameriqual Group LLC (4)
9.500%, 4/01/12 103,000
40,000 Amkor Technologies
7.125%, 3/15/11 39,850
65,000 Asia Aluminum Holdings (4)
8.000%, 12/23/11 66,381
20,000 Atlas Pipeline Partners
8.125%, 12/15/15 20,900
75,000 Avnet
6.625%, 9/15/16 77,636
20,000 Belden (4)
7.000%, 3/15/17 20,555
10,000 Berry Petroleum
8.250%, 11/01/16 10,075
35,000 Beverages & More (4)
9.250%, 3/01/12 35,613
75,000 Bombardier (4)
8.000%, 11/15/14 79,125
50,000 Bowater (3)
8.355%, 3/15/10 50,500
60,000 Broadview Networks
Holdings (4)
11.375%, 9/01/12 64,500
45,000 Buffalo Thunder
Development
Authority (4)
9.375%, 12/15/14 46,463
25,000 Case Equipment
7.250%, 1/15/16 26,406
35,000 CCH I Capital LLC
11.000%, 10/01/15 37,363
20,000 CCH I Holdings LLC
10.000%, 5/15/14 18,750
65,000 Centennial
Communications (3)
11.099%, 1/01/13 68,656
100,000 Centercredit
International (4)
8.625%, 1/30/14 96,375
55,000 Chaparral Energy
8.500%, 12/01/15 56,100
Principal
Amount (a) Value $
---------- -------
60,000 Chesapeake Energy
7.000%, 8/15/14 62,250
40,000 Chiquita Brands International
8.875%, 12/01/15 38,600
30,000 Cie Generale Geophysique
7.750%, 5/15/17 31,875
105,000 Citigroup
6.125%, 8/25/36 108,639
85,000 Citizens Communications
9.000%, 8/15/31 93,712
70,000 Claymont Steel (4)
8.875%, 2/15/15 70,700
20,000 Coleman Cable (4)
9.875%, 10/01/12 21,050
75,000 Cooper (4)
7.125%, 2/15/15 76,875
25,000 Copano Energy LLC
8.125%, 3/01/16 26,188
35,000 CRC Health
10.750%, 2/01/16 38,500
60,000 Dynegy Holdings
8.375%, 5/01/16 63,525
78,665 Elwood Energy LLC
8.159%, 7/05/26 83,669
100,000 Empire Capital Resources (4)
9.375%, 12/15/11 107,750
100,000 Enterprise Products
Operations (3)
8.375%, 8/01/66 110,915
10,000 Felcor Lodging LP
REIT (3) (4)
7.275%, 12/01/11 10,150
25,000 Ford Motor
7.450%, 7/16/31 19,781
70,000 Ford Motor Credit LLC
9.875%, 8/10/11 74,605
Freeport-McMoRan
70,000 8.375%, 4/01/17 76,737
10,000 8.250%, 4/01/15 10,838
45,000 Freescale Semiconductor (4)
10.125%, 12/15/16 45,675
75,000 FTI Consulting
7.750%, 10/01/16 78,656
General Motors
80,000 8.375%, 7/15/33 72,700
25,000 7.200%, 1/15/11 23,938
30,000 Hawaiian Telcom
Commumications
12.500%, 5/01/15 33,900
HCA (4)
40,000 9.250%, 11/15/16 43,700
140,000 6.375%, 1/15/15 122,325
25,000 Hornbeck Offshore
Service Series B
6.125%, 12/01/14 24,188
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 54
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount (a) Value $
---------- -------
10,000 Host Hotels & Resorts LP
6.875%, 11/01/14 10,288
110,000 Intelsat Bermuda
11.250%, 6/15/16 126,087
105,000 JPMorgan Chase
6.550%, 9/29/36 107,643
120,000 Kazkommerts
International (4)
7.500%, 11/29/16 116,100
25,000 Level 3 Financing (4)
8.750%, 2/15/17 25,563
35,000 Linens 'n Things (3)
10.981%, 1/15/14 33,119
70,000 Lyondell Chemical
8.000%, 9/15/14 73,675
150,000 MarkWest Energy Partners
8.500%, 7/15/16 158,250
65,000 McLeodusa (4)
10.500%, 10/01/11 68,576
25,000 Metropcs Wireless (4)
9.250%, 11/01/14 26,813
40,000 Michaels Stores (4)
11.375%, 11/01/16 44,200
125,000 Mohegan Tribal Gaming
7.125%, 8/15/14 127,500
40,000 Mosaic (4)
7.375%, 12/01/14 41,800
100,000 MTR Gaming Group
9.000%, 6/01/12 105,500
25,000 Neff Rental
11.250%, 6/15/12 29,125
90,000 Neiman Marcus Group
10.375%, 10/15/15 101,587
25,000 Nevada Power Series O
6.500%, 5/15/18 26,307
20,000 NRG Energy
7.375%, 1/15/17 20,775
75,000 Petroplus Finance (4) (7)
7.000%, 5/01/17 76,031
40,000 Petroquest Energy
10.375%, 5/15/12 42,200
90,000 PNA Group (4)
10.750%, 9/01/16 99,450
25,000 PNA Intermediate
Holding (3) (4)
12.360%, 2/15/13 25,875
75,000 PolyOne
8.875%, 5/01/12 76,500
85,000 Quebecor World Capital (4)
8.750%, 3/15/16 87,337
Qwest
50,000 7.625%, 6/15/15 53,687
15,000 7.500%, 10/01/14 15,938
90,000 Regency Energy Partners (4)
8.375%, 12/15/13 93,150
Principal
Amount (a) Value $
---------- -------
25,000 Reliant Energy
6.750%, 12/15/14 26,313
45,000 Rental Service (4)
9.500%, 12/01/14 48,037
45,000 Residential Capital LLC (3)
6.660%, 11/21/08 45,114
45,000 Reynolds American
7.625%, 6/01/16 49,459
45,000 San Pasqual Casino (4)
8.000%, 9/15/13 46,575
Seagate Technology Holding
45,000 6.800%, 10/01/16 44,831
45,000 6.375%, 10/01/11 45,056
30,000 Seitel (4)
9.750%, 2/15/14 30,675
15,000 Senior Housing Trust
8.625%, 1/15/12 16,463
20,000 Snoqualmie (4)
9.125%, 2/01/15 20,800
35,000 Stallion Oilfield (4)
9.750%, 2/01/15 36,925
100,000 Standard Chartered (3) (4)
6.409%, 1/30/49 99,735
20,000 Stater Brothers Holdings (4)
7.750%, 4/15/15 20,650
40,000 Steel Dynamics (4)
6.750%, 4/01/15 40,300
55,000 Stena
7.500%, 11/01/13 56,375
40,000 Sterling Chemicals (4)
10.250%, 4/01/15 40,800
300,000 Stingray Pass Through
Trust (4)
5.902%, 1/12/15 278,244
75,000 Sunstate Equipment (4)
10.500%, 4/01/13 80,625
105,000 Swiss Re Capital I LP (3) (4)
6.854%, 5/29/49 109,810
100,000 Taqa Abu Dhabi National (4)
6.500%, 10/27/36 101,865
75,000 Toys "R" Us
7.875%, 4/15/13 71,250
50,000 Tristan Oil (4)
10.500%, 1/01/12 53,125
40,000 Umbrella Acquisition (4)
9.750%, 3/15/15 40,350
25,000 United Auto Group (4)
7.750%, 12/15/16 25,500
30,000 United Surgical Partners (4)
8.875%, 5/01/17 31,013
Ventas Realty LP
25,000 7.125%, 6/01/15 26,125
60,000 6.500%, 6/01/16 60,975
40,000 Vitamin Shoppe (3)
12.860%, 11/15/12 42,800
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 55
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount (a) Value $
---------- -------
30,000 Vitro (4)
9.125%, 2/01/17 31,575
30,000 Williams Partners (4)
7.250%, 2/01/17 31,875
55,000 Williams Series A
7.500%, 1/15/31 58,575
95,000 Wimar Opco LLC (4)
9.625%, 12/15/14 96,900
--------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $6,726,607) 6,865,928
--------------
MORTGAGE-BACKED
OBLIGATIONS - 0.8%
92,764 Gracechurch Card PLC,
Series 2006-A, Class A1 (3)
6.308%, 10/15/12 126,893
38,440 GSAA Home Equity Trust,
Series 2006-6N,
Class N1 (4) (8) (9)
5.750%, 7/26/36 37,672
59,188 Master Asset-Backed
Securities NIM
Trust, Series 2006-CI23,
Cl N1 (4) (8) (9)
7.250%, 8/25/36 47,350
12,624 Meritage Mortgage
Loan Trust, Series 2004-1,
Class B1 (3) (4)
8.820%, 7/25/34 2,135
11,292 New Century Home Equity
Loan Trust, Series 2003-3,
Class M5 (3) (8)
7.514%, 7/25/33 9,339
28,000 Park Place Securities,
Series 2004-WCW1,
Class N8 (3) (8)
8.820%, 9/25/34 23,150
53,030 Sharps SP I LLC NIM Trust,
Series 2006-HE3,
Class NA (4) (8) (9)
6.400%, 6/25/36 26,515
--------------
TOTAL MORTGAGE-
BACKED
OBLIGATIONS
(Cost $319,270) 273,054
--------------
Principal
Amount (a) Value $
---------- -------
SHORT-TERM
INVESTMENT - 5.3%
1,773,549 JPMorgan Chase Bank,
N.A. Time Deposit
(Nassau), 4.80% 1,773,549
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $1,773,549) 1,773,549
--------------
TOTAL
INVESTMENTS - 142.2%
(Cost $47,243,676) 47,556,070
--------------
OTHER ASSETS LESS
LIABILITIES - (42.2)% (14,120,431)
--------------
NET ASSETS - 100.0% $ 33,435,639
==============
(a) Principal amount denominated in U.S. dollars unless otherwise indicated.
(1) Perpetual Bond -- Rate disclosed is as of April 30, 2007. The maturity
date shown is the next callable date.
(2) Zero Coupon Security -- Rate disclosed is the effective yield at time of
purchase.
(3) Variable Rate Security -- Rate disclosed is as of April 30, 2007.
(4) Security 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, 2007, the
value of these securities amounted to $3,491,552, representing 10.4% of
the net assets of the Fund.
(5) The rate shown represents the security's effective yield at time of
purchase.
(6) Security, or portion of security, has been pledged as collateral on open
derivative positions and mortgage dollar rolls.
(7) Security purchased on a when-issued basis.
(8) Security considered illiquid. On April 30, 2007, the value of these
securities amounted to $144,026, representing 0.4% of the net assets of
the Fund.
(9) Security considered restricted. (See Note 2 in Notes to Financial
Statements.)
BRL -- Brazilian Real
CHF -- Swiss Franc
EGP -- Egyptian Pound
EUR -- Euro
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GBP -- British Pound Sterling
IDR -- Indonesian Rupiah
JPY -- Japanese Yen
LLC -- Limited Liability Company
LP -- Limited Partnership
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 56
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
MTN -- Medium Term Note
MYR -- Malaysian Ringgit
NIM -- Net Interest Margin
PLC -- Public Limited Company
PLZ -- Polish Zolty
REIT -- Real Estate Investment Trust
TBA -- To Be Announced
USD -- United States Dollar
- --------------------------------------------------------------------------------
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2007:
NET
NUMBER UNREALIZED
OF EXPIRATION APPRECIATION
CONTRACTS VALUE DATE (DEPRECIATION)
- --------------------------------------------------------------------------------
LONG:
Japan
10 Year Bond 8 $ 8,997,824 June-07 $ 5,012
U.S. Treasury
5 Year Note 5 529,141 June-07 610
--------
5,622
--------
SHORT:
Euro-Bobl 1 147,052 June-07 1,545
Euro-Bund 22 3,426,665 June-07 15,232
Euro-Schatz 1 140,734 June-07 592
Long Gilt 2 428,569 July-07 688
U.S. Treasury
2 Year Note 124 25,385,125 July-07 3,503
U.S. Long
Bond 3 335,250 June-07 507
U.S. Treasury
5 Year Note 136 14,392,625 June-07 (50,346)
U.S. Treasury
10 Year Note 38 4,116,469 June-07 (10,848)
--------
(39,127)
--------
$(33,505)
========
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund had the following forward foreign currency contracts outstanding at
April 30, 2007:
NET
UNREALIZED
SETTLEMENT CURRENCY CURRENCY APPRECIATION
DATE TO DELIVER TO RECEIVE (DEPRECIATION)
- --------------------------------------------------------------------------------
7/3/07 USD 453,484 EUR 339,363 $ 10,678
6/29/07 GBP 164,371 EUR 241,047 1,110
7/3/07 USD 65,000 JPY 7,638,215 (537)
6/26/07 BRL 499,680 USD 240,000 (4,045)
7/3/07 EUR 2,024,195 USD 2,714,233 (54,348)
7/3/07 JPY 691,908,320 USD 5,960,000 120,577
7/3/07 PLZ 1,708,156 USD 590,000 (27,211)
--------
$ 46,224
========
A summary of the outstanding Credit Default Swap agreements held by the Fund at
April 30, 2007 is as follows:
SWAP
EXPIRATION NOTIONAL CONTRACTS
DESCRIPTION DATE AMOUNT AT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Fund pays quarterly 0.03% (0.12% per annum) times notional amount of Allstate Corp.
6.75% 5/15/18. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $165,000 $ (69)
Fund pays quarterly 0.19% (0.76% per annum) times notional amount of Alltel Corp.
7.00% 7/1/12. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 3/20/12 $80,000 581
Fund pays quarterly 0.055% (0.22% per annum) times notional amount of AT&T Inc.
5.875% 2/1/12. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 3/20/12 $150,000 (212)
Fund receives quarterly 0.45% (1.80% per annum) times notional amount of BCM Ireland
Finance 8.587% 8/15/16. Upon a defined credit event the Fund pays notional amount and
takes receipt of a defined deliverable obligation. (Counterparty: Lehman Brothers) 3/20/10 EUR 80,000 1,044
Fund pays quarterly 0.6375% (2.55% per annum) times notional amount of Cablevision Systems
Corp. 8.00% 4/15/12. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $75,000 (885)
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 57
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
A summary of the outstanding Credit Default Swap agreements held by the Fund at
April 30, 2007 (CONTINUED):
SWAP
EXPIRATION NOTIONAL CONTRACTS
DESCRIPTION DATE AMOUNT AT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Fund pays quarterly 0.8625% (3.45% per annum) times notional amount of CDX NA HY Index
Series 6. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/11 $25,000 $(1,266)
Fund pays quarterly 0.8625% (3.45% per annum) times notional amount of CDX NA HY Index
Series 6. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/11 $25,000 (1,266)
Fund receives quarterly 0.8125% (3.25% per annum) times notional amount of CDX NA HY Index
Series 7. Upon a defined credit event the Fund pays notional amount and takes receipt of
a defined deliverable obligation. (Counterparty: Lehman Brothers) 12/20/11 $325,000 12,695
Fund pays quarterly 0.115% (0.46% per annum) times notional amount of Ciba Specialty
Chemicals 6.50% 4/24/13. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 3/20/12 EUR 125,000 (347)
Fund receives quarterly payment of 0.20% (0.80% per annum) times notional amount of CMS
Energy Corp. 6.875% 12/15/15. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: Lehman Brothers) 3/20/12 $40,000 132
Fund receives quarterly payment of 0.08375% (0.335% per annum) times notional amount of
Comcast Cable Communications 7.125% 6/15/13. Upon a defined credit event the Fund pays
notional amount and takes receipt of a defined deliverable obligation.
(Counterparty: Lehman Brothers) 9/20/11 $100,000 791
Fund receives quarterly payment of 1.875% (7.50% per annum) times notional amount of Ford
Motor Company 7.45% 7/16/31. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: Lehman Brothers) 9/20/11 $25,000 2,172
Fund receives quarterly payment of 1.21% (4.84% per annum) times notional amount of Ford
Motor Company 7.45% 7/16/31. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: Lehman Brothers) 3/20/12 $95,000 (1,280)
Fund receives quarterly payment of 0.06625% (0.265% per annum) times notional amount of
France Telecom 7.25% 1/28/13. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 3/20/12 EUR 115,000 563
Fund pays quarterly 0.0925% (0.37% per annum) times notional amount of Gannett Co., Inc.
6.375% 4/1/12. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 9/20/11 $100,000 (58)
Fund pays quarterly 0.0875% (0.35% per annum) times notional amount of Gannett Co., Inc.
6.375% 4/1/12. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $150,000 680
Fund receives quarterly 1.70% (6.80% per annum) times notional amount of General Motors
7.125% 7/15/13. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 9/20/11 $25,000 2,655
Fund receives quarterly 0.72% (2.88% per annum) times notional amount of Intelsat Corp.
6.5% 11/1/13. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $75,000 (2,941)
Fund receives quarterly 0.075% (0.30% per annum) times notional amount of iTraxx Europe 10
Year Index Series 6. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 12/20/11 EUR 250,000 1,437
Fund receives quarterly 0.125% (0.50% per annum) times notional amount of iTraxx Europe 10
Year Index Series 7. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/17 EUR 550,000 2,503
Fund receives quarterly 0.125% (0.50% per annum) times notional amount of iTraxx Europe 10
Year Index Series 7. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/17 EUR 550,000 2,503
Fund pays quarterly 0.575% (2.30% per annum) times notional amount of iTraxx Europe
Crossover 5 Year Index Series 7. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/12 EUR 117,500 (1,820)
Fund pays quarterly 0.575% (2.30% per annum) times notional amount of iTraxx Europe
Crossover 5 Year Index Series 7. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation.
(Counterparty: Morgan Stanley) 6/20/12 EUR 117,500 (1,820)
Fund receives quarterly 0.11% (0.44% per annum) times notional amount of MBIA Inc. 6.625%
10/1/28. Upon a defined credit event the Fund pays notional amount and takes receipt of
a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $165,000 68
Fund pays quarterly 0.08375% (0.335% per annum) times notional amount of New York Times Co.
4.61% 9/26/12. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $150,000 845
Fund pays quarterly 0.04% (0.16% per annum) times notional amount of Pitney Bowes Inc.
4.625% 10/1/12. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 9/20/11 $100,000 52
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 58
- --------------------------------------------------------------------------------
SCHRODER STRATEGIC BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
A summary of the outstanding Credit Default Swap agreements held by the Fund at
April 30, 2007 (CONCLUDED):
SWAP
EXPIRATION NOTIONAL CONTRACTS
DESCRIPTION DATE AMOUNT AT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Fund receives semi-annually 1.135% (2.27% per annum) times notional amount of Republic of
Argentina 8.28% 12/31/33. Upon a defined credit event the Fund pays notional amount and
takes receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 11/20/11 $53,000 $ 1,697
Fund receives semi-annually 0.565% (1.13% per annum) times notional amount of Republic of
Colombia 10.375% 1/28/33. Upon a defined credit event the Fund pays notional amount and
takes receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 1/20/12 $360,000 7,651
Fund receives quarterly 0.17% (0.68% per annum) times notional amount of Reynolds American
Inc. 7.625% 6/1/16. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/12 $75,000 (84)
Fund pays quarterly 0.0895% (0.358% per annum) times notional amount of Sara Lee Corp.
6.125% 11/1/32. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/12 $165,000 459
Fund pays quarterly 0.0825% (0.33% per annum) times notional amount of Telekom
Finanzmanagement 5.00% 7/22/13. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation.
(Counterparty: Credit Suisse Group) 6/20/14 EUR 125,000 (65)
Fund receives quarterly 0.065% (0.26% per annum) times notional amount of Time Warner
Entertainment 8.875% 10/1/12. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: Lehman Brothers) 6/20/12 $300,000 (135)
Fund pays quarterly 0.2425% (0.97% per annum) times notional amount of Tyson Foods Inc.
8.25% 10/1/11. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Lehman Brothers) 3/20/12 $75,000 (1,049)
Fund pays quarterly 0.06625% (0.265% per annum) times notional amount of United Utilities
PLC 6.875% 8/15/28. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 3/20/12 EUR 300,000 (763)
-------
$24,468
=======
A summary of the outstanding Interest Rate Swap agreements held by the Fund at
April 30, 2007 is as follows:
SWAP
EXPIRATION NOTIONAL CONTRACTS
DESCRIPTION DATE AMOUNT AT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Receive fixed rate of 4.1825% and pay floating rate based on 6-month EURIBOR.
(Counterparty: JP Morgan) 3/12/17 EUR 1,600,000 $ 36,863
Receive floating rate based on 6-month Swiss Franc LIBOR and pay fixed rate of 2.89%.
(Counterparty: JP Morgan) 3/12/17 CHF 2,400,000 (16,883)
--------
$ 19,980
========
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 59
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS - 34.7%
FHLMC Gold
34,477 6.000%, 12/01/28 35,046
1,555,600 5.500%, 12/01/34 1,541,505
702,299 5.000%, 7/01/33 680,506
821,866 5.000%, 8/01/33 796,364
335,556 4.500%, 3/01/19 325,542
1,885,000 FHLMC Gold TBA
6.000%, 5/15/37 1,900,316
FNMA
24,887 7.500%, 12/01/29 26,105
3,021 7.000%, 12/01/10 3,052
39,682 6.000%, 12/01/28 40,302
27,320 6.000%, 12/01/28 27,747
435,071 5.500%, 7/01/34 431,107
113,824 4.500%, 10/01/33 107,234
125,000 4.250%, 5/15/09 123,658
FNMA TBA
640,000 5.500%, 5/25/37 632,800
1,645,000 5.000%, 5/25/22 1,621,353
87,813 FNMA, Series 2004-35, Class AJ
4.500%, 1/25/20 87,001
GNMA
38,275 8.000%, 11/15/17 40,294
1,332 8.000%, 6/15/26 1,419
77,044 5.500%, 1/15/34 76,707
290,271 5.500%, 9/20/34 288,457
--------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $8,805,571) 8,786,515
--------------
U.S. TREASURY
OBLIGATIONS (5) - 29.7%
4,000,000 U.S. Treasury Bill (6)
4.880%, 5/03/07 3,999,008
U.S. Treasury Bonds
240,000 4.625%, 2/15/17 239,962
260,000 4.500%, 3/31/12 259,787
480,000 4.500%, 2/15/36 455,175
292,068 U.S. Treasury Inflation Bond
2.375%, 1/15/27 294,224
U.S. Treasury Notes
1,125,000 4.750%, 2/28/09 1,127,022
260,000 4.750%, 2/15/10 261,523
245,000 4.500%, 4/30/12 244,092
649,599 2.375%, 1/15/17 659,927
--------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $7,521,200) 7,540,720
--------------
Principal
Amount $ Value $
--------- -------
CORPORATE OBLIGATIONS - 23.7%
100,000 Agile Property Holdings (1)
9.000%, 9/22/13 106,250
35,000 Allis-Chalmers Energy
8.500%, 3/01/17 35,350
100,000 American General Finance MTN
5.750%, 9/15/16 101,900
200,000 American International Group
5.050%, 10/01/15 196,874
95,000 Arizona Public Service
5.800%, 6/30/14 96,072
45,000 Assured Guaranty
7.000%, 6/01/34 49,724
115,000 Assured Guaranty, Series A (2)
6.400%, 12/15/66 117,012
70,000 AT&T
6.800%, 5/15/36 76,232
150,000 Bank of America
5.375%, 8/15/11 151,895
85,000 BBVA International (1) (2)
5.919%, 4/18/17 84,079
100,000 BellSouth
4.750%, 11/15/12 97,760
40,000 Bowater (2)
8.355%, 3/15/10 40,400
70,000 Burlington North Santa Fe
6.150%, 5/01/37 70,811
100,000 Centercredit International (1)
8.625%, 1/30/14 96,375
160,000 Cisco Systems
5.500%, 2/22/16 161,151
Citigroup
100,000 6.125%, 8/25/36 103,465
100,000 5.125%, 2/14/11 100,258
65,000 Cleveland Electric Illumination
5.700%, 4/01/17 64,972
115,000 Colonial Realty LP
5.500%, 10/01/15 113,344
70,000 Colorado Interstate Gas
6.800%, 11/15/15 75,007
70,000 Cooper (1)
7.125%, 2/15/15 71,750
105,000 Corp. Andina de Fomento
5.750%, 1/12/17 105,804
95,000 Credit Suisse USA
5.500%, 8/16/11 96,544
45,000 CSX
6.150%, 5/01/37 44,968
60,000 DaimlerChrysler
8.500%, 1/18/31 75,821
45,000 Dime Capital Trust I, Series A
9.330%, 5/06/27 47,244
70,000 Enterprise Products Operations (2)
8.375%, 8/01/66 77,641
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 60
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
40,000 Federated Retail Holding
5.350%, 3/15/12 40,022
65,000 Ford Motor Credit LLC
9.875%, 8/10/11 69,276
60,000 FTI Consulting
7.625%, 6/15/13 62,250
100,000 Gaz Capital (1)
6.212%, 11/22/16 101,550
50,000 Genentech
5.250%, 7/15/35 46,494
145,000 General Electric Capital MTN,
Series A
6.750%, 3/15/32 165,623
55,000 Goldman Sachs Group
5.950%, 1/15/27 54,515
40,000 Goldman Sachs Group LP
5.000%, 10/01/14 39,030
65,000 Greif (1)
6.750%, 2/01/17 66,463
50,000 HCA (1)
9.125%, 11/15/14 54,125
45,000 Health Care REIT
6.200%, 6/01/16 45,969
50,000 Hospitality Properties Trust (1)
5.625%, 3/15/17 49,285
60,000 Host Hotels & Resorts LP
6.875%, 11/01/14 61,725
70,000 ITC Holdings (1)
5.875%, 9/30/16 70,599
55,000 JCPenney
7.400%, 4/01/37 61,212
10,000 JPMorgan Chase
4.750%, 3/01/15 9,693
100,000 Kazkommerts International (1)
7.500%, 11/29/16 96,750
70,000 Korea Development Bank
3.875%, 3/02/09 68,457
60,000 Lehman Brothers Holdings MTN
5.250%, 2/06/12 60,070
85,000 Magellan Misdstream Partners
6.400%, 5/01/37 86,306
65,000 Mohegan Tribal Gaming
7.125%, 8/15/14 66,300
60,000 NXP (1)
7.875%, 10/15/14 62,700
80,000 Oneok Partners LP
6.150%, 10/01/16 82,501
60,000 Pacific Gas & Electric
5.800%, 3/01/37 59,331
75,000 Petroplus Finance (1) (4)
6.750%, 5/01/14 75,750
120,000 QBE Capital Funding II
LP (1) (2) (4)
6.797%, 6/01/17 121,256
Principal
Amount $ Value $
--------- -------
55,000 Qwest
7.625%, 6/15/15 59,056
130,000 Residential Capital LLC (2)
6.660%, 11/21/08 130,330
65,000 Reynolds American
7.625%, 6/01/16 71,441
95,000 Senior Housing Trust
8.625%, 1/15/12 104,262
100,000 Shimao Property Holdings (1)
8.000%, 12/01/16 103,625
100,000 Standard Chartered (1) (2)
6.409%, 1/30/49 99,736
35,000 Steel Dynamics (1)
6.750%, 4/01/15 35,263
200,000 Swiss Re Capital I LP (1) (2)
6.854%, 5/29/49 209,163
100,000 Target (4)
5.375%, 5/01/17 100,229
100,000 Time Warner Cable (1)
6.550%, 5/01/37 101,466
65,000 Trans-Canada Pipelines (2) (4)
6.350%, 5/15/67 64,884
100,000 UBS AG Stamford Connecticut
5.875%, 7/15/16 104,425
65,000 UBS Preferred Funding Trust I (2)
8.622%, 10/29/49 71,800
100,000 Unicredito Luxemburg
Finance (1) (2)
5.584%, 1/13/17 101,479
20,000 Vale Overseas
6.875%, 11/21/36 21,314
60,000 Ventas Realty LP
6.500%, 6/01/16 60,975
95,000 Vitro (1)
9.125%, 2/01/17 99,988
110,000 VTB Capital (1) (2)
6.100%, 9/21/07 110,195
60,000 Williams Series A
7.500%, 1/15/31 63,900
55,000 Wyeth
5.950%, 4/01/37 55,187
--------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $5,949,414) 6,004,673
--------------
COMMERCIAL
PAPER (6) - 9.8%
2,500,000 Citicorp
5.281%, 5/14/07 2,495,251
--------------
TOTAL COMMERCIAL
PAPER
(Cost $2,495,251) 2,495,251
--------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 61
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
COLLATERALIZED
MORTGAGE OBLIGATIONS - 8.9%
440,000 Bear Stearns Commercial Mortgage
Securities, Series 2004-PWR3,
Class A4
4.715%, 2/11/41 428,466
395,000 Bear Stearns Commercial Mortgage
Securities, Series 2005-T18,
Class A4 (2)
4.933%, 2/13/42 385,819
47,870 Citigroup Mortgage Loan Trust,
Series 2003-1, Class WA2
6.500%, 6/25/31 48,536
242,578 Citigroup Mortgage Loan Trust,
Series 2003-UP3, Class A2
7.000%, 9/25/33 249,197
173,875 Citigroup Mortgage Loan Trust,
Series 2005-1, Class 3A1
6.500%, 4/25/35 176,340
618,477 Countrywide Alternative Loan
Trust, Series 2005-65CB, Class 1A7
5.500%, 1/25/36 619,082
215,000 Morgan Stanley Capital I,
Series 2003-T11, Class A3
4.850%, 6/13/41 212,711
120,000 Morgan Stanley Capital I,
Series 2004-T15, Class A4 (2)
5.270%, 6/13/41 120,252
4,121 Salomon Brothers Mortgage
Securities VII, Series 2001-CPB1,
Class A (2)
7.446%, 12/25/30 4,109
--------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $2,260,138) 2,244,512
--------------
MORTGAGE-BACKED
OBLIGATIONS - 4.6%
5,366 Fremont NIM Trust,
Series 2005-B (1) (3) (7)
5.500%, 4/25/35 3,220
4,363 Home Equity Asset Trust,
Series 2003-1, Class B2 (2) (3)
9.570%, 6/25/33 813
600,000 Merrill Lynch Mortgage Trust,
Series 2004-BPC1, Class A3 (2)
4.467%, 10/12/41 583,476
6,743 Option One Mortgage Loan Trust,
Series 2002-3, Class M2 (2)
7.015%, 8/25/32 6,754
600,000 Wachovia Bank Commercial Mortgage
Trust, Series 2005-C19, Class A5
4.661%, 5/15/44 583,755
--------------
TOTAL MORTGAGE-BACKED
OBLIGATIONS
(Cost $1,170,096) 1,178,018
--------------
Principal
Amount $ Value $
--------- -------
ASSET-BACKED SECURITIES - 1.0%
100,495 Hedged Mutual Fund Fee Trust,
Series 2003-1A, Class 2 (1) (3) (7)
5.220%, 11/30/10 100,118
155,214 Hedged Mutual Fund Fee Trust,
Series 2003-2, Class 2 (1) (3) (7)
4.840%, 3/02/11 152,595
--------------
TOTAL ASSET-BACKED
SECURITIES
(Cost $255,545) 252,713
--------------
SHORT-TERM
INVESTMENT - 3.9%
979,336 JPMorgan Chase Bank,
N.A. Time Deposit (Nassau),
4.80% 979,336
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $979,336) 979,336
--------------
TOTAL INVESTMENTS - 116.3%
(Cost $29,436,551) 29,481,738
--------------
OTHER ASSETS LESS
LIABILITIES - (16.3)% (4,127,791)
--------------
NET ASSETS - 100.0% $ 25,353,947
==============
(1) Security 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, 2007, the
value of these securities amounted to $2,173,780, representing 8.6% of the
net assets of the Fund.
(2) Variable Rate Security -- Rate disclosed is as of April 30, 2007.
(3) Security considered illiquid. On April 30, 2007, the value of these
securities amounted to $256,746 representing 1.0% of the net assets of the
Fund.
(4) Security purchased on a when-issued basis.
(5) Security, or portion of the security, has been pledged as collateral on
mortgage dollar rolls.
(6) The rate shown represents the security's effective yield at time of
purchase.
(7) Security considered restricted (See Note 2 in Notes to Financial
Statements).
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
GNMA -- Government National Mortgage Association
LLC -- Limited Liability Company
LP -- Limited Partnership
MTN -- Medium Term Note
NIM -- Net Interest Margin
REIT -- Real Estate Investment Trust
TBA -- To Be Announced
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 62
- --------------------------------------------------------------------------------
SCHRODER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2007:
NUMBER NET
OF EXPIRATION UNREALIZED
CONTRACTS VALUE DATE DEPRECIATION
- --------------------------------------------------------------------------------
LONG:
U.S. Treasury
2 Year Note 41 $8,393,469 July-07 $(6,482)
SHORT:
U.S. Treasury
10 Year Note 26 2,816,531 June-07 (1,766)
-------
$(8,248)
=======
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 63
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - 92.9%
ALABAMA - 1.8%
Alabama Private Colleges &
Universities Facilities RB,
Tuskegee University Project,
Assured Guaranty
2,000,000 4.750%, 9/01/26 2,058,060
470,000 4.000%, 9/01/13 473,647
425,000 3.950%, 9/01/12 427,380
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%, 3/01/08 251,535
775,000 Jefferson County, Limited Obligation
School RB Warrants, Series A
5.250%, 1/01/15 834,466
630,000 Jefferson County, Multi-Family
Housing Authority RB Warrants,
Mitchell Investments, Series A,
(LOC: Regions Bank)
5.400%, 9/01/12 645,032
1,300,000 Montgomery, Educational Building
Authority RB, Faulkner University
Project, RADIAN (12)
5.250%, 10/01/32 1,370,889
--------------
6,061,009
ARIZONA - 0.5%
290,000 Phoenix, Industrial Development
Authority RB, Hacienda
Sunnyslope Project,
Series A, AMT, GNMA
4.350%, 7/20/15 293,785
20,000 Pima County GO, ETM
6.750%, 11/01/09 20,266
1,465,000 State Health Facilities Authority RB,
Phoenix Baptist Hospital &
Medical Center, MBIA, ETM
6.250%, 9/01/11 1,510,561
--------------
1,824,612
ARKANSAS - 4.7%
570,000 Baxter County, Hospital Revenue
Authority RB, Refunding &
Improvement Project, Series A
5.375%, 9/01/14 584,849
4,240,000 Cabot, Sales & Use Tax RB,
XLCA
4.300%, 12/01/31 4,362,536
1,000,000 Drew County, Industrial
Development RB, JP Price Lumber
Project, Series B, ADFA, AMT
5.000%, 2/01/16 1,035,700
Principal
Amount $ Value $
--------- -------
2,730,000 Fayetteville, Sales & Use Tax RB,
Capital Improvement,
Series A, FSA
3.000%, 11/01/20 2,417,306
Heber Springs, Sales & Use Tax
RB, CIFG
1,275,000 4.700%, 6/01/30 1,306,811
1,205,000 4.650%, 6/01/27 1,231,124
1,300,000 Little Rock, Library Construction
GO, Series A
4.250%, 3/01/23 1,274,650
250,000 Pine Bluff, Industrial Development
RB, Weyerhaeuser Project
5.500%, 11/01/07 252,168
380,000 Scott County, Sales & Use Tax RB,
Correctional Facility
Improvements
5.000%, 8/01/36 385,198
925,000 Springdale, Sales & Use Tax RB,
MBIA
4.000%, 7/01/16 932,640
1,765,000 Stuttgart, Sales & Use Tax RB,
AMBAC
4.200%, 10/01/31 1,743,238
--------------
15,526,220
CALIFORNIA - 5.6%
720,000 Benicia, Unified School District GO,
Series B, MBIA (5)
4.589%, 8/01/18 410,911
California Health Facilities Funding
Authority RB, California-Nevada-
Methodist Project
360,000 5.000%, 7/01/14 381,535
375,000 5.000%, 7/01/15 397,406
395,000 5.000%, 7/01/16 418,822
825,000 4.250%, 7/01/11 830,404
35,000 California State GO
3.625%, 5/01/07 35,000
85,000 California Statewide Communities
Development Authority COP,
Kaiser Remarket, FSA, ETM
5.300%, 12/01/15 87,871
8,390,000 Contra Costa Home Mortgage
Finance RB, Multi-Family Housing,
MBIA, ETM (5)
6.481%, 9/01/17 4,323,451
100,000 Delta County Home Mortgage
Finance RB, Single-Family
Mortgage-Backed Securities,
Series A, AMT, MBIA,
GNMA, FNMA
5.350%, 6/01/24 101,040
3,080,000 Los Angeles, Community
Redevelopment Agency RB,
Pooled Financing, Series M,
RADIAN (8)
6.100%, 9/01/16 3,201,845
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 64
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
535,000 Los Angeles, Multi-Family
Housing RB, Colorado Terrace
Project, Series H, AMT, GNMA
4.350%, 11/20/12 540,382
3,490,000 Manteca, Financing Authority
Sewer RB, Series B, MBIA
5.000%, 12/01/33 3,490,140
25,000 Placer County, Water Agency RB,
Middle Fork Project
3.750%, 7/01/12 24,866
60,000 Sacramento County, Sacramento
Main Detention Center COP,
MBIA, ETM
5.500%, 6/01/10 61,742
10,000 Sacramento County, Sanitation
Authority RB, ETM
5.125%, 12/01/10 10,013
153,000 San Bernardino County,
Transportation Authority RB,
Series A, FGIC, ETM
6.000%, 3/01/10 158,635
175,000 Southern California, Public Power
Authority RB, Palo Verde Project,
Series A, ETM
5.000%, 7/01/17 175,191
3,530,000 Stockton, United Christian Schools
COP, Mandatory Put, (LOC:
Pacific Capital Bank) (1) (7)
4.300%, 4/03/17 3,530,000
420,000 Valley Center, Unified School
District GO, Capital Appreciation,
Series A, MBIA (5)
4.521%, 9/01/17 241,093
--------------
18,420,347
COLORADO - 3.8%
3,790,000 Adonea, Metropolitan District
No. 2 RB, Series B,
(LOC: Compass Bank)
4.375%, 12/01/15 3,841,923
730,000 Beacon Point, Metropolitan
District RB, Series B,
(LOC: Compass Bank)
4.375%, 12/01/15 737,271
100,000 Denver City & County COP,
Series A, MBIA,
Pre-Refunded @ 100 (2)
5.000%, 5/01/11 101,337
700,000 Denver City & County
Multi-Family Housing RB,
Cottonwood Creek,
Series A (1) (3) (4) (6)
3.930%, 4/15/14 700,000
Principal
Amount $ Value $
--------- -------
20,000 Denver, City & County Airport RB,
Series D, AMT
7.750%, 11/15/13 22,148
1,620,000 High Plains, Metropolitan
District RB, (LOC: Compass Bank)
4.375%, 12/01/15 1,651,574
500,000 Interlocken Metropolitan
District GO, Series A, RADIAN
5.750%, 12/15/11 527,130
600,000 State Educational & Cultural
Facilities Authority RB, Charter
School, Littleton, CIFG
4.300%, 1/15/26 594,180
615,000 State Educational & Cultural
Facilities Authority RB,
Charter School, Peak to Peak,
XLCA
3.000%, 8/15/09 605,424
365,000 State Educational & Cultural
Facilities Authority RB, Parker
Core Charter School, XLCA
3.500%, 11/01/14 354,794
1,590,000 State Health Facilities Authority RB,
Poudre Valley Health Care,
Series F
5.000%, 3/01/25 1,622,961
30,000 State Health Facility Authority RB,
Series A, ETM
5.350%, 11/01/16 30,636
Teller County, COP, Assured
Guaranty
400,000 5.000%, 12/01/24 428,192
120,000 4.550%, 12/01/18 123,083
310,000 4.500%, 12/01/17 317,753
300,000 4.400%, 12/01/16 306,009
150,000 4.150%, 12/01/13 151,027
190,000 3.500%, 12/01/09 187,783
180,000 3.150%, 12/01/07 179,354
--------------
12,482,579
CONNECTICUT - 0.7%
50,000 Greenwich, New Public Housing
Authority RB
5.250%, 5/01/08 50,672
55,000 State Health & Educational
Facilities RB, Danbury Hospital,
ETM
7.875%, 7/01/09 57,285
2,000,000 State Health & Educational
Facilities RB, Saint Francis
Hospital Medical Center,
Series D, RADIAN
5.500%, 7/01/17 2,150,180
--------------
2,258,137
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 65
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
DELAWARE - 0.8%
New Castle County, Newark
Charter School Income Project RB
365,000 5.000%, 9/01/17 380,177
1,000,000 5.000%, 9/01/22 1,035,400
255,000 4.750%, 9/01/13 260,936
150,000 4.750%, 9/01/15 153,570
825,000 State Economic Development
Authority RB, Delmarva Power
& Light, Series D, AMT
5.650%, 7/01/28 856,631
--------------
2,686,714
DISTRICT OF COLUMBIA - 0.5%
500,000 District of Columbia GO,
Series B, FSA, ETM
5.500%, 6/01/14 522,420
585,000 District of Columbia RB,
Enterprise Zone-819 7th Street,
AMT, Mandatory Put, (LOC:
Branch Banking & Trust) (7)
3.600%, 10/01/09 577,886
Hospital RB, Medlantic Healthcare
Group, Series A, MBIA, ETM
100,000 5.750%, 8/15/14 102,152
410,000 5.750%, 8/15/26 418,815
--------------
1,621,273
FLORIDA - 2.8%
50,000 Clearwater, Housing Authority RB,
Affordable Housing Acquisition
Program, FSA
4.950%, 6/01/07 50,032
1,300,000 Collier County, Industrial
Development Authority RB, Naples
Community Hospital Project,
Mandatory Put, (LOC: Bank of
America NA) (7)
4.650%, 9/30/19 1,320,293
428,813 Dade County, Single-Family
Housing Finance Authority RB,
Series B-1, AMT, GNMA, FNMA
6.100%, 4/01/27 443,161
15,000 Florida State GO, ETM
5.900%, 7/01/08 15,177
Gulf Breeze, Local Government
RB, FGIC, Mandatory Put (6) (7)
1,135,000 4.000%, 12/01/14 1,126,317
600,000 4.000%, 12/01/15 590,982
500,000 Hillsborough County School Board
COP, Series B, MBIA
5.000%, 7/01/18 530,390
155,000 Jacksonville, Electric Authority RB,
ETM
5.375%, 7/01/12 161,285
10,000 Jacksonville, Electric Authority RB,
Third Installment, ETM
6.800%, 7/01/12 10,785
Principal
Amount $ Value $
--------- -------
125,000 Jacksonville, Health Facilities RB,
Daughters of Charity, MBIA,
ETM (1) (3) (4)
5.000%, 11/15/15 125,124
60,000 Orange County, Tourist Division
RB, AMBAC, ETM
6.000%, 10/01/16 60,285
25,000 Orange County, Tourist Division
RB, Orange County Convention,
AMBAC, ETM
9.250%, 9/01/07 25,419
1,060,000 Orange County, Tourist Division
RB, Series A, AMBAC, ETM
6.250%, 10/01/13 1,122,095
365,000 Pinellas County, Housing Finance
Authority RB, Multi-County
Program, Series A-3, AMT,
GNMA, FNMA
4.000%, 3/01/25 363,040
120,000 Tampa, Allegany Health System
RB, Saint Anthony, MBIA, ETM
5.125%, 12/01/15 120,674
65,000 Tampa, Allegany Health System
RB, Saint Joseph, MBIA, ETM
5.125%, 12/01/23 65,365
340,000 Tampa, Allegany Health System
RB, Saint Mary's, MBIA, ETM
5.125%, 12/01/23 341,999
100,000 Vero Beach, Electric RB,
MBIA, ETM
6.500%, 12/01/07 101,610
850,000 Volusia County, Educational
Facilities Authority RB, Embry
Riddle, RADIAN
5.000%, 10/15/25 887,511
1,900,000 Volusia County, Housing Finance
Authority RB, Fishermans
Landing Apartments, FNMA (6)
3.930%, 1/15/32 1,900,000
--------------
9,361,544
GEORGIA - 2.9%
2,235,000 Cobb County, Kennestone
Hospital Authority RB, Capital
Appreciation Certificates,
Series 86A, MBIA, ETM (5)
6.159%, 8/01/15 1,328,350
1,200,000 Cobb County, Multi-Family
Housing Revenue Authority RB,
Post Bridge Project, FNMA (6)
3.950%, 6/01/25 1,200,000
900,000 Dekalb County, Multi-Family
Housing RB, Winters Creek
Apartments Project, FNMA (6)
3.980%, 6/15/25 900,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 66
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
45,000 Fulco, Hospital Authority RB,
Saint Joseph Hospital, ETM
5.375%, 10/01/09 45,224
40,000 Gwinnett County, Water &
Sewer RB, MBIA, ETM
6.100%, 3/01/08 40,806
1,770,000 Kennesaw, Urban Redevelopment
Agency RB, City Hall Expansion
Project
3.950%, 1/01/19 1,776,283
750,000 Marietta, Multi-Family Housing
Authority RB, Franklin Walk
Apartments Project, FHLMC (6)
3.550%, 1/01/32 750,000
1,360,000 Marietta, Multi-Family Housing
Authority RB, Wood Glen,
FHLMC (6)
3.920%, 7/01/24 1,360,000
490,000 Municipal Electric Authority
Power RB, Capital Appreciation,
Series Q, MBIA (5)
6.785%, 1/01/12 362,424
1,000,000 Roswell, Multi-Family Housing
Authority RB, Chambrel Roswell,
FNMA (6)
3.970%, 11/15/32 1,000,000
800,000 Smyrna, Multi-Family Housing
Authority RB, Hills of Post
Village Project, FNMA (6)
3.950%, 6/01/25 800,000
--------------
9,563,087
IDAHO - 0.1%
5,000 Idaho Falls, Electric Revenue
Authority RB, ETM
6.750%, 4/01/09 5,194
165,000 State Housing & Finance
Association RB, Single-Family
Mortgage, Series D, Class III,
AMT
5.400%, 7/01/21 170,074
--------------
175,268
ILLINOIS - 8.2%
4,460,000 Bolingbrook, Sales Tax RB (5)
1.277%, 1/01/15 4,423,383
1,180,000 Bolingbrook, Special Services Areas
Special Tax, Reference 2001-1-2-3
& 2002-1, MBIA
4.000%, 3/01/18 1,161,391
560,000 Calhoun & Greene Counties,
Community School District
No. 40 GO
4.700%, 1/01/16 564,133
1,000,000 Cary, Special Tax, Special Service
Area No. 2, RADIAN
4.400%, 3/01/16 1,017,030
Principal
Amount $ Value $
--------- -------
1,750,000 Chicago, Increment Allocation
Revenue, Diversey Narragansett
Project COP
7.460%, 2/15/26 1,866,427
2,000,000 Chicago, Kingsbury Redevelopment
Project TAN, Series A
6.570%, 2/15/13 2,061,840
1,000,000 Chicago, Lake Shore East SA
6.750%, 12/01/32 1,083,180
3,500,000 Cortland, Special Tax, Sheaffer
Systems Project (1)
5.500%, 3/01/17 3,546,410
1,253,000 Lakemoor Village, Special Tax,
RADIAN
4.550%, 3/01/16 1,290,352
2,860,000 Pingree Grove, Special Services
Area, Cambridge Lakes Project,
Series 05-1
5.250%, 3/01/15 2,950,576
850,000 State Educational Facilities
Authority RB, Capital Appreciation,
ETM (5)
9.996%, 7/01/14 534,302
740,000 State Educational Facilities
Authority RB, Capital Appreciation,
Pre-Refunded @ 57.17 (2) (5)
6.078%, 7/01/14 364,739
1,120,000 State Financial Authority RB,
Medical District Common Project,
Series A, CIFG
4.125%, 9/01/18 1,118,746
850,000 State Financial Authority RB,
Metropolitis Project
5.000%, 12/01/24 869,099
3,020,000 State Health Facilities Authority RB,
Hinsdale Hospital, Series A, ETM
6.950%, 11/15/13 3,398,799
275,000 State Health Facilities Authority RB,
Hospital of Sisters Services,
Series A, FSA, Optional Put
4.500%, 12/01/23 275,726
555,000 Will County, Community School
District GO, Alternative Revenue
Source Larway
5.625%, 12/01/23 597,019
--------------
27,123,152
INDIANA - 1.4%
Gary, Sanitation District, Special
Taxing District, RADIAN
250,000 5.000%, 2/01/12 261,347
270,000 5.000%, 2/01/13 283,851
50,000 Indianapolis, Industrial Utilities
District RB, ETM
7.000%, 6/01/08 50,666
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 67
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
Maconaquah, School District RB,
Energy Management Financing
Project
286,756 5.000%, 1/01/12 296,850
301,093 5.000%, 1/01/13 313,263
316,148 5.000%, 1/01/14 330,340
261,339 4.750%, 1/01/10 265,432
273,752 4.750%, 1/01/11 279,457
241,622 4.000%, 1/01/08 241,347
251,287 4.000%, 1/01/09 250,804
Munster, Municipal Center RB,
First Mortgage
400,000 5.000%, 7/15/24 414,960
700,000 4.875%, 7/15/21 721,140
445,000 4.700%, 7/15/17 455,800
95,000 State Health Facility Financing
Authority RB, Ancilla Systems,
MBIA, ETM
5.250%, 7/01/22 96,162
State Health Facility Financing
Authority RB, Methodist Hospital,
Series A, AMBAC, ETM
100,000 5.750%, 9/01/11 100,956
360,000 5.750%, 9/01/15 363,474
20,000 Wells County, Hospital Authority
RB, ETM
7.250%, 4/01/09 20,558
--------------
4,746,407
IOWA - 1.0%
Coralville COP, Series D
500,000 5.250%, 6/01/15 531,150
300,000 5.000%, 6/01/12 311,016
200,000 5.000%, 6/01/13 208,398
275,000 5.000%, 6/01/14 287,529
75,000 State Financial Authority RB,
Mercy Health System, Series V,
FSA, ETM
5.250%, 8/15/27 76,033
Xenia Rural Water Distribution
RB, CIFG
1,100,000 4.500%, 12/01/31 1,090,265
1,000,000 4.500%, 12/01/41 969,270
--------------
3,473,661
KANSAS - 0.5%
300,000 Lenexa, Multi-Family Housing
Authority RB, Barrington Park
Apartments, Series A, FNMA (6)
3.970%, 2/01/23 300,000
200,000 Shawnee, Multi-Family Housing RB,
Thomasbrook Apartments, Series A,
AMT, FNMA
5.250%, 10/01/14 204,098
Principal
Amount $ Value $
--------- -------
1,000,000 University of Kansas Hospital
Authority RB, KU Health Systems,
Series A, AMBAC,
Pre-Refunded @100 (2)
5.400%, 9/01/13 1,037,660
--------------
1,541,758
KENTUCKY - 0.8%
40,000 Jefferson County, Health
Facilities RB, Alliant Health
Systems, MBIA, ETM
5.125%, 10/01/27 40,578
1,800,000 Marshall County, Public Property
Corporation RB, Courthouse
Facility Project
5.250%, 3/01/23 1,935,936
645,000 State Area Development Districts
Financing GO, Henderson,
Series G1
5.750%, 12/01/20 664,589
20,000 State Turnpike Authority RB, ETM
6.125%, 7/01/07 20,078
--------------
2,661,181
LOUISIANA - 7.5%
245,000 Calcasieu Parish, Public
Transportation Authority RB,
Single-Family Mortgage, Series A,
AMT, GNMA, FNMA
5.850%, 10/01/32 245,492
5,000,000 Denham Springs-Livingston,
Housing & Mortgage Financial
Authority RB, Mortgage-Backed
Securities Program, GNMA,
FNMA, FHLMC
5.000%, 11/01/40 5,179,950
3,500,000 Houma-Terrebonee, Public
Financing Authority RB,
Mortgage-Backed Securities
Program, GNMA, FNMA,
FHLMC (12)
5.150%, 12/01/40 3,669,400
2,535,000 State Housing Financial Agency RB,
Multi-Family Housing Revenue,
Plantation Apartment Project,
Series A, FNMA, Mandatory Put (7)
4.100%, 4/15/17 2,519,942
1,270,000 State Housing Financial Agency RB,
Single-Family Home Ownership,
Series A2, AMT, GNMA, FNMA
5.800%, 6/01/36 1,345,883
2,320,000 State Multi-Family Housing Finance
Agency RB, Section 8-202 Project,
Series A
4.750%, 12/01/31 2,345,566
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 68
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
8,600,000 State Public Facilities Authority RB,
Multi-Family Housing, River View,
FHLMC (6)
3.970%, 4/01/36 8,600,000
1,000,000 State Public Facilities Authority RB,
Pennington Medical Foundation
Project
4.000%, 7/01/11 994,260
--------------
24,900,493
MASSACHUSETTS - 2.9%
260,000 State Development Finance
Agency RB, Curry College,
Series A, ACA
3.875%, 3/01/15 252,296
545,000 State Development Finance
Agency RB, Seven Hills
Foundation & Affiliates,
RADIAN
4.500%, 9/01/16 559,731
5,250,000 State GO, Consolidated Loan,
Series A, Pre-Refunded @ 100 (2)
5.125%, 1/01/20 5,607,053
515,000 State Health & Educational Facilities
Authority RB, Cape Cod
Healthcare, Series C, RADIAN
5.250%, 11/15/17 542,558
885,000 State Health & Educational
Facilities Authority RB, Mass
General Hospital,
Series F, AMBAC
6.250%, 7/01/12 937,392
932,000 State Health & Educational Facilities
Authority RB, Nichols College
Issue, Series C
6.000%, 10/01/17 983,269
780,000 State Housing Financial Agency RB,
Series D
4.200%, 12/01/10 784,056
--------------
9,666,355
MICHIGAN - 1.2%
2,710,000 Kalamazoo, Hospital Finance
Authority RB, Borgess Medical
Center, Series A, AMBAC, ETM
5.625%, 6/01/14 2,881,082
10,000 State Hospital Finance Authority RB,
Charity Obligatory Group,
Series A, ETM
5.000%, 11/01/19 10,342
60,000 State Hospital Finance Authority RB,
Daughters of Charity Hospital, ETM
5.250%, 11/01/10 60,373
10,000 State Hospital Finance Authority RB,
Mercy Health Services, MBIA, ETM
5.750%, 8/15/26 10,155
Principal
Amount $ Value $
--------- -------
45,000 State Hospital Finance Authority RB,
Mercy Health Services, Series Q,
AMBAC, ETM
5.375%, 8/15/26 45,503
70,000 State Hospital Finance
Authority RB, Saint John
Hospital, AMBAC, ETM
5.250%, 5/15/26 70,774
900,000 State Housing Development
Authority RB, Courtyards of
Taylor Project, Series A, FNMA (6)
3.970%, 8/15/32 900,000
--------------
3,978,229
MINNESOTA - 2.0%
960,000 Burnsville, Hospital System RB,
Fairview Community Hospitals,
ETM (5)
5.780%, 5/01/12 694,685
30,000 Coon Rapids, Hospital RB,
Health Central, ETM
7.625%, 8/01/08 30,698
1,998,492 Minneapolis Saint Paul, Housing
Financial Board RB, Single-Family
Mortgage, Mortgage-Backed
City Living, Series A-5, GNMA,
FNMA, FHLMC
5.450%, 4/01/27 2,117,562
27,000 Minneapolis, Community
Development Agency RB,
BIG, ETM
8.875%, 11/01/11 30,245
3,700,000 Minneapolis, Health Care System
RB, Fairview Health Services,
Series C, MBIA (6)
3.970%, 11/15/26 3,700,000
--------------
6,573,190
MISSISSIPPI - 0.7%
310,000 Horn Lake SA, Desoto Commons,
AMBAC
5.000%, 4/15/17 330,637
Meridian, Housing Authority RB,
Series A, AMT (1)
1,200,000 5.000%, 9/01/15 1,219,080
655,000 5.000%, 9/01/25 674,434
--------------
2,224,151
MISSOURI - 3.4%
730,000 Boone County, Industrial
Development Authority RB,
Otscon Project, AMT,
Mandatory Put, (LOC: Boone
County National Bank) (6) (7)
4.750%, 5/01/12 738,884
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 69
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
890,000 Brentwood, Tax Increment TA,
Brentwood Pointe Project
4.500%, 5/01/23 898,704
760,000 Brentwood, Tax Increment TA,
Brentwood Square Project
4.500%, 5/01/22 757,173
1,610,000 Hannibal, Industrial Development
Authority Tax, Stardust-Munger
Project
4.700%, 4/15/23 1,619,982
3,500,000 Kansas City, Industrial Development
Authority RB, Coach House North
Apartments, FHLMC (6)
3.550%, 11/01/30 3,500,000
Ozark Centre, Transportation
Development District RB
175,000 5.375%, 9/01/32 176,641
200,000 4.875%, 9/01/24 202,962
State Development Finance Board
Infrastructure Facilities RB, Branson
Landing Project, Series A
180,000 4.250%, 6/01/13 180,684
100,000 4.125%, 6/01/12 99,983
125,000 State Development Finance Board
Infrastructure Facilities RB, Branson,
Series A
5.375%, 12/01/22 130,910
430,000 State Development Finance Board
Infrastructure Facilities RB, Drumm
Farm Project
4.625%, 3/01/20 436,188
500,000 State Development Finance Board
Infrastructure Facilities TA, Triumph
Foods Project, Series A
5.250%, 3/01/25 519,850
1,640,000 State Health & Educational Facilities
Authority RB, Park Lane Medical
Center, Series A, MBIA, ETM
5.600%, 1/01/15 1,732,430
205,000 State Housing Development
Community RB, Single-Family
Homeowner Loan Program,
Series A-1, GNMA
5.000%, 3/01/17 206,581
--------------
11,200,972
MONTANA - 1.1%
3,315,000 Forsyth, Pollution Control RB,
Northwestern Colstrip, AMBAC
4.650%, 8/01/23 3,421,013
165,000 State Board Investment RB, Payroll
Tax Workers Compensation Project,
MBIA, ETM
6.875%, 6/01/11 171,790
--------------
3,592,803
Principal
Amount $ Value $
--------- -------
NEBRASKA - 0.4%
100,000 Nebhelp RB, Jr-Sub-Series A-6,
AMT, MBIA
6.400%, 6/01/13 104,272
10,000 Scotts Bluff County, Hospital
Authority No. 1 RB, Regional West
Medical Center
6.375%, 12/15/08 10,014
State Educational Finance Authority
RB, Dana College, Series A
200,000 4.500%, 3/15/13 198,666
195,000 4.500%, 3/15/14 193,060
180,000 4.350%, 3/15/12 178,124
State Educational Finance Authority
RB, Dana College, Series D
170,000 5.400%, 3/15/25 175,071
240,000 5.200%, 3/15/20 245,318
50,000 4.950%, 3/15/16 50,605
50,000 4.850%, 3/15/15 50,422
45,000 4.700%, 3/15/13 45,145
50,000 4.700%, 3/15/14 50,059
45,000 4.550%, 3/15/12 44,902
40,000 4.450%, 3/15/11 39,787
--------------
1,385,445
NEVADA - 0.4%
1,436,977 Rural Housing Authority RB,
Single-Family Housing, Series A,
GNMA, FNMA (6)
5.250%, 8/01/38 1,478,247
--------------
NEW HAMPSHIRE - 0.1%
185,000 State Health & Educational
Facilities Authority RB, Speare
Memorial Hospital
5.000%, 7/01/12 186,917
--------------
NEW JERSEY - 4.9%
150,000 Burlington County, Bridge
Commission RB, County
Guaranteed Governmental
Leasing Program
5.250%, 8/15/15 160,284
3,000,000 Camden County, Improvement
Authority GO (8)
5.450%, 3/20/08 2,996,760
1,890,000 Camden County, Improvement
Authority GO, BAN (8)
5.740%, 8/01/07 1,890,567
1,000,000 Haddon Township GO, BAN,
Series A (8)
5.800%, 5/16/07 1,000,120
Health Care Facilities RB, Allegany
Health, Our Lady of Lourdes,
MBIA, ETM
30,000 5.200%, 7/01/18 31,390
50,000 5.125%, 7/01/13 51,179
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 70
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
110,000 Health Care Facilities RB,
Community Memorial Hospital
Toms River, ETM
6.750%, 7/01/09 113,330
50,000 Health Care Facilities RB, Mercer
Medical Center, ETM
7.000%, 7/01/08 50,913
Lake Como Boro GO
20,000 4.400%, 7/15/07 20,014
20,000 4.400%, 7/15/08 20,097
38,000 4.400%, 7/15/09 38,340
40,000 4.400%, 7/15/10 40,511
40,000 4.400%, 7/15/11 40,635
40,000 4.400%, 7/15/12 40,715
40,000 4.400%, 7/15/13 40,771
40,000 4.400%, 7/15/14 40,803
40,000 4.400%, 7/15/15 40,785
40,000 4.400%, 7/15/16 40,741
4,000,000 State Economic Development
Authority RB, First Mortgage Far
Hills Country
5.500%, 9/01/24 4,004,480
1,065,000 State Economic Development
Authority RB, Wanaque
Convalescent Center Project,
Series A, (LOC: Sovereign Bank)
3.750%, 2/15/12 1,055,277
State Higher Education Assistance
Authority RB, Series A, AMT,
AMBAC
1,100,000 5.200%, 6/01/13 1,109,174
1,180,000 4.950%, 6/01/10 1,185,570
1,500,000 Union County, Industrial Pollution
Control RB, American Cyanamid
(GA: Wyeth)
5.800%, 9/01/09 1,538,325
Woodlynne GO
40,000 4.625%, 8/01/07 40,070
40,000 4.625%, 8/01/08 40,374
50,000 4.625%, 8/01/09 50,837
50,000 4.625%, 8/01/10 51,187
50,000 4.625%, 8/01/11 51,433
60,000 4.625%, 8/01/12 61,999
60,000 4.625%, 8/01/13 62,234
60,000 4.625%, 8/01/14 62,047
70,000 4.625%, 8/01/15 72,467
70,000 4.625%, 8/01/16 72,496
70,000 4.625%, 8/01/17 72,477
72,000 4.625%, 8/01/18 74,456
--------------
16,262,858
NEW MEXICO - 0.0%
50,000 State Mortgage Finance Authority
RB, Single-Family Mortgage,
Series B-2, AMT, GNMA, FNMA,
FHLMC
5.550%, 1/01/30 50,983
Principal
Amount $ Value $
--------- -------
60,000 State Severance Tax RB,
Pre-Refunded @ 100 (2)
5.000%, 7/01/10 60,122
--------------
111,105
NEW YORK - 5.8%
3,600,000 Amherst, Industrial Development
Agency RB, Civic Facilities,
Daemen College Project, Series A,
Pre-Refunded @ 102 (2)
6.125%, 10/01/31 4,014,036
Freeport GO
100,000 4.500%, 8/01/09 101,406
100,000 4.500%, 8/01/10 101,995
100,000 4.500%, 8/01/11 102,514
100,000 4.500%, 8/01/12 102,581
125,000 4.500%, 8/01/13 128,546
125,000 4.500%, 8/01/14 128,735
125,000 4.500%, 8/01/15 128,446
125,000 4.500%, 8/01/16 128,500
150,000 Hempstead Town, Industrial
Development Agency RB, Adelphi
University Civic Facilities
5.250%, 2/01/13 154,722
275,000 Metropolitan Transportation Authority
RB, Commuter Facilities, Series B,
AMBAC, ETM
5.125%, 7/01/24 281,105
Metropolitan Transportation Authority
RB, Commuter Facilities, Series D,
MBIA, ETM
45,000 5.125%, 7/01/22 46,719
470,000 5.000%, 7/01/12 484,053
25,000 4.900%, 7/01/10 25,297
75,000 Metropolitan Transportation Authority
RB, Dedicated Tax Fund, Series A,
FGIC, ETM
5.250%, 4/01/14 76,799
Metropolitan Transportation Authority
RB, Grand Central Terminal - 2,
AMT, FSA, ETM
50,000 5.500%, 7/01/12 50,074
55,000 5.400%, 7/01/11 55,076
15,000 Metropolitan Transportation Authority
RB, Series B-2, MBIA, ETM
5.000%, 7/01/17 15,329
100,000 Metropolitan Transportation Authority
RB, Service Contract, Series Q,
AMBAC, ETM
5.125%, 7/01/12 101,227
375,000 Metropolitan Transportation Authority
RB, Service Contract, Series R, ETM
5.500%, 7/01/11 386,404
State Dormitory Authority RB, Non
State Supported Debt, Cabrini
College Westchester, GNMA
4,500,000 5.200%, 2/15/41 4,878,360
4,800,000 4.800%, 8/15/25 4,952,112
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 71
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
200,000 State Environmental Facilities RB,
Corporate Pollution Control, Water
Revolving Fund, Series D, ETM
5.000%, 6/15/12 206,940
State Housing Finance Agency RB,
Capitol Green Apartments, Series B,
FNMA
500,000 4.375%, 11/15/17 503,100
1,000,000 4.200%, 11/15/14 1,002,610
205,000 State Urban Development RB,
Capital Appreciation (5)
5.746%, 1/01/11 166,300
55,000 State Urban Development RB,
Capital Appreciation, MBIA (5)
5.782%, 1/01/11 44,257
75,000 State Urban Development RB,
Capital Appreciation, Series O,
FSA (5)
5.830%, 1/01/11 60,350
345,000 Triborough Bridge & Tunnel
Authority RB, General Purpose,
Series A, ETM
5.000%, 1/01/24 345,352
500,000 Triborough Bridge & Tunnel
Authority RB, General Purpose,
Series A, MBIA, ETM
5.000%, 1/01/24 501,160
50,000 Triborough Bridge & Tunnel
Authority RB, General Purpose,
Series B, ETM
5.100%, 1/01/10 51,053
--------------
19,325,158
NORTH CAROLINA - 0.2%
295,000 Mecklenburg County, Multi-Family
Housing RB, Little Rock
Apartments, AMT, FNMA
3.500%, 1/01/12 291,375
235,000 State Medical Care Community
Hospital RB, Saint Joseph
Hospital Project, AMBAC, ETM
5.100%, 10/01/14 235,249
--------------
526,624
NORTH DAKOTA - 0.1%
State Housing Finance Agency RB,
Housing Finance Program Home
Mortgage, Series B, AMT,
SPA-FHLB
250,000 4.125%, 7/01/11 247,367
210,000 4.000%, 7/01/10 207,394
--------------
454,761
Principal
Amount $ Value $
--------- -------
OHIO - 2.5%
Columbus, Sewer Improvement
Bonds GO, ETM
170,000 6.750%, 9/15/07 171,878
150,000 6.000%, 9/15/11 150,524
270,000 Germantown, Public Infrastructure
GO, Hickory Point
4.600%, 12/01/15 270,054
2,410,000 State Economic Development RB,
Heath Grains Bakery (8) (10)
5.840%, 12/01/25 2,394,504
1,080,000 State Housing Finance Agency
Mortgage RB, Residential
Mortgage-Backed Securities,
AMT, GNMA, FNMA
4.625%, 9/01/16 1,106,881
2,000,000 Summit County, Port Authority
Board RB, Cavaliers Practice,
Series D (8)
6.250%, 5/15/26 1,950,720
2,085,000 Warrensville Heights, BAN
4.000%, 5/31/07 2,084,687
100,000 Wood County, Industrial
Development RB, Schutz
Container Systems Project,
Series B, (LOC: Bayerische
Hypo-und Vereinsbank) (6)
7.125%, 6/01/13 103,860
--------------
8,233,108
OKLAHOMA - 1.8%
530,000 State Home Finance Authority RB,
Single-Family Mortgage, Series B,
AMT, GNMA, FNMA, FHLMC
4.250%, 9/01/25 530,715
195,000 Tulsa County, Home Finance
Authority RB, Single-Family
Mortgage, FGIC, ETM
6.900%, 8/01/10 204,243
2,500,000 Tulsa, Industrial Authority TA,
Series A (8)
7.350%, 1/01/17 2,572,400
2,500,000 Tulsa, Industrial Authority TA,
Series B (8)
7.300%, 7/01/16 2,554,025
--------------
5,861,383
OREGON - 0.4%
780,000 Portland, Housing Authority RB,
New Columbia Development,
Capital Funding Program, AMT
4.300%, 10/01/15 771,638
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 72
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
475,000 State Facilities Authority RB,
College Inn Student Housing,
Series B
6.250%, 7/01/11 479,451
--------------
1,251,089
PENNSYLVANIA - 6.3%
Abington Township, Municipal
Authority RB, Marywood
University Project, RADIAN
705,000 4.450%, 6/01/20 703,590
730,000 4.450%, 6/01/21 724,094
675,000 4.400%, 6/01/19 674,102
650,000 4.250%, 6/01/18 645,775
195,000 Allegheny County, Hospital
Development Authority RB,
Childrens Hospital of Pittsburgh,
MBIA, ETM
5.300%, 7/01/26 213,562
725,000 Allegheny County, Hospital
Development Authority RB,
Jefferson Regional Medical Center,
Series B
5.000%, 5/01/18 745,641
60,000 Allegheny County, Hospital
Development Authority RB,
Pittsburgh Mercy Health Systems,
AMBAC, ETM
5.625%, 8/15/26 60,920
Allegheny County, Redevelopment
Authority TA, Waterfront Project,
Series B
125,000 4.250%, 12/15/12 126,443
160,000 4.000%, 12/15/10 160,155
165,000 4.000%, 12/15/11 165,215
10,000 Berks County GO, Second Series,
MBIA
3.300%, 11/15/09 9,889
400,000 Chester, Upland School District GO
4.200%, 5/15/13 401,124
970,000 Chester, Upland School District GO,
XLCA
4.850%, 9/15/16 1,034,263
100,000 Dauphin County, General Authority
RB, AMBAC, Mandatory Put (7)
4.550%, 6/01/08 100,761
80,000 Dauphin County, General Authority
RB, Hapsco-Western Pennsylvania
Hospital Project, Series A-1,
MBIA, ETM
5.500%, 7/01/13 84,506
1,660,000 Delaware County, Hospital Revenue
Authority RB, Crozer Keystone
Obligation Group, Series A
5.000%, 12/15/19 1,717,619
Principal
Amount $ Value $
--------- -------
75,000 Erie, Higher Education Building
Authority RB, Gannon University
Project, AMBAC, ETM
7.375%, 6/01/08 76,382
1,525,000 Harrisburg, Parking Authority RB,
Series R, XLCA
4.250%, 5/15/21 1,532,107
60,000 Hempfield, School District GO, ETM
7.200%, 10/15/09 62,669
845,000 Lancaster County, School District
GO, FSA
4.250%, 6/01/25 833,424
185,000 Lancaster County, School District
GO, Series A, FSA
4.000%, 6/01/20 182,767
1,500,000 Philadelphia, Authority for Industrial
Development RB, Commercial
Development, Red Lion, AMT,
Mandatory Put, (LOC: PNC Bank,
NA) (7) (8)
4.500%, 12/01/16 1,491,360
1,025,000 Philadelphia, Multi-Family Housing
Redevelopment Authority RB,
Pavilion Apartments Project,
Series A, AMT, HUD Section 236
4.250%, 10/01/16 1,008,293
500,000 Philadelphia, School District GO,
Series D, FSA
5.000%, 6/01/15 538,245
4,785,000 Scranton, Redevelopment Authority
RB, RADIAN (8)
6.100%, 11/01/24 4,719,254
375,000 State Higher Education Facilities
Authority RB, St. Francis
Independent Colleges-Universities
5.000%, 11/01/11 377,430
755,000 State Higher Educational Facilities
Authority RB, Allegheny Delaware
Valley Obligation, Series A, MBIA
5.700%, 11/15/11 811,021
30,000 State Higher Educational Facilities
Authority RB, Tenth Series, ETM
6.900%, 7/01/07 30,155
1,610,000 State University RB, GO of
University
5.000%, 9/01/24 1,711,349
--------------
20,942,115
RHODE ISLAND - 0.5%
55,000 State Depositors Economic
Protection RB, Series B, MBIA,
ETM
6.000%, 8/01/17 60,291
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 73
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
270,000 State Health & Educational Building
Authority RB, Capital Appreciation,
BIG (5)
6.168%, 11/01/12 194,154
Woonsocket, Housing Authority RB,
Capital Funds Housing Project
385,000 4.500%, 9/01/10 394,359
400,000 4.500%, 9/01/11 411,932
420,000 4.500%, 9/01/12 434,205
--------------
1,494,941
SOUTH CAROLINA - 1.3%
305,000 Greenville County, Airport RB,
Donaldson Industrial Air Park
Project, AMT
6.125%, 10/01/17 318,203
135,000 Piedmont, Municipal Power Agency
RB, Capital Appreciation, Series A,
AMBAC (5)
9.758%, 1/01/15 88,595
State Educational Facilities
Authority RB, Non-Profit
Institutions, Wofford College
Series A
360,000 4.500%, 4/01/20 364,590
375,000 4.500%, 4/01/21 378,578
750,000 4.500%, 4/01/30 738,375
330,000 4.250%, 4/01/18 332,330
345,000 4.250%, 4/01/19 345,766
600,000 State Housing Finance &
Development Authority RB,
Multi-Family Housing,
Spartanburg Project, Series A,
FHLMC (6)
3.970%, 8/01/31 600,000
1,000,000 State Housing Finance &
Development Authority RB,
Rental Housing Greenville,
Series A, FHLMC (6)
3.970%, 8/01/31 1,000,000
--------------
4,166,437
TENNESSEE - 1.7%
1,840,000 Chattanooga, Health, Educational
& Housing Facilities RB,
Windrige Apartments, Series A (6)
3.930%, 5/15/33 1,840,000
230,000 Nashville & Davidson Counties,
Metropolitan Government Cab
Converter RB, FGIC
7.700%, 1/01/12 256,427
500,000 Nashville & Davidson Counties,
Metropolitan Government Health
& Educational Facilities Board RB,
RADIAN
5.100%, 8/01/16 506,015
Principal
Amount $ Value $
--------- -------
1,500,000 Nashville & Davidson Counties,
Multi-Family Housing RB, River
Retreat, Series A, FMNA
4.750%, 11/01/26 1,494,330
State School Board Authority RB,
Series B (9)
40,000 5.250%, 5/01/10 40,448
1,275,000 5.000%, 5/01/09 1,289,012
85,000 Wilson County, Health &
Educational Facilities Board RB,
University Medical Center, ETM
8.375%, 8/01/08 87,329
--------------
5,513,561
TEXAS - 6.6%
2,020,000 Allen, Independent School District
GO, Capital Appreciation, PSF,
Pre-Refunded @ 40.017 (2) (5)
5.977%, 2/15/24 727,301
2,025,000 Allen, Independent School District
GO, Capital Appreciation, PSF,
Pre-Refunded @ 42.722 (2) (5)
5.938%, 2/15/23 778,390
145,000 Brownsville GO, Capital
Appreciation, AMBAC (5)
6.437%, 2/15/11 115,927
4,995,699 Central Texas, Single-Family
Housing Financial Corporation
RB, Mortgage-Backed Securities
Program, Series A-1, GNMA,
FNMA
4.700%, 12/01/39 5,160,757
De Soto GO, CIFG
390,000 4.375%, 2/15/24 387,001
330,000 4.250%, 2/15/23 324,760
340,000 4.200%, 2/15/22 334,315
345,000 4.125%, 2/15/21 338,397
330,000 4.100%, 2/15/20 325,264
45,000 Denison, Hospital Authority RB,
Texoma Medical Center, ETM
7.125%, 7/01/08 45,910
Fort Bend County, Municipal Utility
District No. 23 GO, FGIC
45,000 6.500%, 9/01/08 46,566
65,000 6.500%, 9/01/09 68,843
70,000 6.500%, 9/01/10 75,774
45,000 6.500%, 9/01/11 49,704
95,000 5.000%, 9/01/16 99,598
250,000 Greater Greenspoint, Redevelopment
Authority RB, Tax Increment
Contract, RADIAN
5.250%, 9/01/10 260,312
65,000 Harris County, Health Facilities
Development RB, St. Lukes
Episcopal Hospital Project, ETM
6.625%, 2/15/12 66,986
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 74
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
140,000 Houston, Airport System RB, ETM
7.600%, 7/01/10 149,295
15,000 Houston, Sewer System RB,
FGIC, ETM
6.375%, 10/01/08 15,312
2,000,000 Lewisville, Combination Contract
GO, Special Assessment Capital
District 2, ACA (1)
5.875%, 9/01/22 2,163,500
1,650,000 Multi-Family Housing RB
Passthrough, Skyway Villas, Series 7,
AMT, Mandatory Put (7) (8)
5.950%, 11/01/34 1,769,740
Retama, Development Corporate
Special Facilities RB, Retama
Racetrack, ETM (8)
2,000,000 10.000%, 12/15/17 2,793,060
500,000 8.750%, 12/15/11 575,335
50,000 Sendero, Public Facilities RB,
Crown Meadows Project, Series A,
FHLMC
4.250%, 6/01/13 50,343
1,500,000 South Lake GO, AMBAC,
Pre-Refunded @ 26.765 (2) (5)
6.273%, 2/15/29 375,420
3,145,000 South Lake GO, AMBAC,
Pre-Refunded @ 32.616 (2) (5)
6.210%, 2/15/26 959,194
100,000 Tarrant County, Housing Finance RB,
Remington Project, FNMA (6)
3.980%, 2/15/28 100,000
3,200,000 Tarrant County, Housing Finance
RB, Series C10 (1) (6) (10)
4.050%, 12/15/25 3,200,000
25,000 Travis County, Health Facility
Development RB, Daughters of
Charity, MBIA, ETM
5.000%, 11/01/20 25,149
455,000 West Central, Regulation Housing
Financial RB, Mortgage-Backed
Securities Program, Series A, AMT,
GNMA, FNMA, FHLMC
5.350%, 12/01/39 478,301
--------------
21,860,454
UTAH - 0.3%
30,000 Intermountain Power Agency RB,
Series A, ETM
5.000%, 7/01/21 30,029
1,000,000 State Housing Corporation,
Single-Family Mortgage RB,
Series G, Class III, AMT
4.700%, 7/01/28 995,950
--------------
1,025,979
Principal
Amount $ Value $
--------- -------
VIRGINIA - 3.3%
725,000 Norfolk, Packaging Systems RB,
Series A, MBIA
4.000%, 2/01/19 720,860
26,500,000 Pocahontas Parkway Association,
Toll Road RB, Capital
Appreciation, Series B,
Pre-Refunded @ 40.387 (2) (5)
4.060%, 8/15/24 10,195,875
--------------
10,916,735
WASHINGTON - 0.1%
401,949 Nooksack, Indian Tribe RB
5.500%, 2/23/11 398,243
--------------
WEST VIRGINIA - 0.6%
545,000 State Economic Development
Authority, Industrial Development
RB, Central Supply Project, AMT,
(LOC: BB&T)
5.500%, 5/15/10 549,987
2,000,000 State Jobs Investment Trust Board
RB, Promissory Notes,
Series D (5) (8)
6.292%, 7/31/13 1,373,080
--------------
1,923,067
WISCONSIN - 0.7%
800,000 Kronenwetter, Anticipation
Notes
4.750%, 3/01/11 806,808
1,365,000 Oshkosh, Industrial Development
Authority RB, Don Evans
Project, AMT, Mandatory Put,
(LOC: Marshall & Ilslay) (7)
5.500%, 12/01/11 1,380,233
50,000 State Health & Educational
Facilities RB, ACA,
Pre-Refunded @100 (2)
6.000%, 5/15/16 51,169
10,000 State Transportation RB,
Series A
5.500%, 7/01/11 10,685
60,000 Winnebago County,
Promissory Notes GO
4.375%, 4/01/12 61,026
--------------
2,309,921
--------------
TOTAL MUNICIPAL BONDS
(Cost $306,087,013) 307,291,290
--------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 75
- --------------------------------------------------------------------------------
SCHRODER MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
CORPORATE
OBLIGATIONS - 1.2%
710,000 BFL Funding VI (10)
5.000%, 4/01/08 707,728
453,060 IIS/Syska Holdings Energy (10)
3.900%, 8/15/08 436,102
250,000 Kidspeace National Centers of
Georgia, USDA (1) (3) (4) (6)
6.300%, 12/01/28 254,320
791,456 Landmark Leasing (10)
6.200%, 10/01/22 775,619
1,948,605 Niagara Elmwood (1) (8)
6.120%, 12/15/11 1,949,014
--------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $4,152,015) 4,122,783
--------------
Shares
------
SHORT-TERM INVESTMENT - 4.3%
14,058,929 BlackRock Institutional
Muni Fund Portfolio,
3.69% (11) 14,058,929
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $14,058,929) 14,058,929
--------------
TOTAL
INVESTMENTS - 98.4%
(Cost $324,297,957) 325,473,002
--------------
OTHER ASSETS LESS
LIABILITIES - 1.6% 5,401,186
--------------
TOTAL
NET ASSETS - 100.0% $ 330,874,188
==============
(1) Private Placement Security.
(2) Pre-Refunded Security -- The maturity date shown is the pre-refunded date.
(3) Security considered illiquid. On April 30, 2007 the value of these
securities amounted to $1,330,979, representing 0.4% of the net assets of
the Fund.
(4) Security considered restricted. (See Note 2 in Notes to Financial
Statements).
(5) Zero Coupon Security -- Rate disclosed is the effective yield at time of
purchase.
(6) Variable Rate Security -- Rate disclosed is as of April 30, 2007.
(7) Mandatory Put Security -- The mandatory put date is shown as the maturity
date on the Schedule of Investments.
(8) Security is taxable.
(9) Economically Defeased Security.
(10) Security 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, 2007, the
value of these securities amounted to $7,513,953, representing 2.3% of the
net assets of the Fund.
(11) Rate shown is the 7-day effective yield as of April 30, 2007.
(12) Security purchased on a when-issued basis.
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
GA -- Guaranteed Agreement
GNMA -- Government National Mortgage Association
GO -- General Obligation
HUD -- Department of Housing and Urban Development
LOC -- Letter of Credit
NA -- National Association
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
BIG -- BIG Guaranty
FGIC -- Federal Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
PSF -- PSF Guaranty
SPA -- SPA Guaranty
RADIAN -- RADIAN Guaranty
USDA -- USDA Guaranty
XLCA -- XL Capital Assurance
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 76
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
MUNICIPAL BONDS - 96.1%
ARIZONA - 1.7%
50,000 Maricopa County, Hospital RB,
Intermediate Community-Sun
City, ETM
8.625%, 1/01/10 53,525
59,000 Maricopa County, Hospital RB,
St. Lukes Hospital Medical Center
Project, ETM
8.750%, 2/01/10 63,318
100,000 Pima County, Industrial
Development Authority
RB, Tucson Country Day
School Project
4.000%, 6/01/08 99,902
205,000 Pinal County, Industrial
Development Authority,
Correctional Facilities RB, Florence
West Prison, Series A, ACA
3.875%, 10/01/09 202,997
3,100,000 Tucson, Industrial Development
Authority RB, Family Housing
Residential Project, Series A,
FNMA (1)
3.960%, 1/15/32 3,100,000
--------------
3,519,742
ARKANSAS - 3.8%
1,370,000 Fayetteville, Sales & Use Tax
RB, Series A, FSA
4.000%, 11/01/21 1,371,014
105,000 Fayetteville, Sales & Use Tax SA
2.750%, 12/01/09 104,140
495,000 Little Rock, Library Construction
Improvement GO, Series A
4.350%, 3/01/24 494,406
1,385,000 Marion, Sales & Use Tax RB,
Capital Improvement
4.850%, 9/01/32 1,408,019
115,000 Maumelle, Capital Improvement
GO, Series A
3.750%, 3/01/20 112,697
145,000 Maumelle, Capital Improvement
GO, Series B, MBIA
3.600%, 3/01/20 143,108
1,915,000 Rogers GO, XLCA (12)
4.250%, 3/01/31 1,916,072
145,000 Rogers, Sales & Use Tax RB,
Series A, FGIC
4.125%, 9/01/23 144,456
2,035,000 Springdale, Sales & Use Tax
RB, MBIA
4.000%, 7/01/16 2,051,809
--------------
7,745,721
Principal
Amount $ Value $
--------- -------
CALIFORNIA - 3.7%
2,200,000 California Health Facilities Funding
Authority RB, California-Nevada-
Methodist Project
4.250%, 7/01/11 2,214,410
100,000 California Water Residential
Development GO, Series M
4.875%, 10/01/07 100,092
4,540,000 Manteca, Financing Authority
Sewer RB, Series B, MBIA
5.000%, 12/01/33 4,540,182
380,000 Placer County, Water Agency RB,
Middle Fork Project
3.750%, 7/01/12 377,971
55,000 Sacramento County, Sanitation
District RB, ETM
5.000%, 12/01/08 55,063
235,000 Statewide Communities,
Development Authority RB,
Warwick Terrace Apartments,
Series H, (LOC: City National Bank)
4.800%, 4/15/19 235,021
--------------
7,522,739
COLORADO - 7.7%
7,260,000 Adonea, Metropolitan District No. 2
RB, Series B, (LOC: Compass Bank)
4.375%, 12/01/15 7,359,462
2,855,000 Beacon Point, Metropolitan District
RB, Series B, (LOC: Compass Bank)
4.375%, 12/01/15 2,883,436
20,000 Denver City & County Multi-Family
Housing RB, Buerger Brothers
Project, Series A, AMT, FHA
5.100%, 11/01/07 20,037
3,000,000 Denver City & County Multi-Family
Housing RB, Cottonwood Creek,
Series A (1) (2) (3) (4)
3.930%, 4/15/14 3,000,000
120,000 El Paso County, Academy Water &
Sanitation District GO
3.650%, 11/15/07 119,563
1,615,000 High Plains, Metropolitan District
RB, (LOC: Compass Bank)
4.375%, 12/01/15 1,646,476
345,000 State Health Facilities Authority RB,
Volunteers of America Care,
Series A (12)
5.000%, 7/01/08 346,522
180,000 State Housing & Finance Authority
RB, Single-Family Program
Series C-2, AMT
8.400%, 10/01/21 189,981
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 77
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
285,000 State Housing & Finance Authority
RB, Single-Family Project,
Series D2, AMT
6.350%, 11/01/29 287,770
--------------
15,853,247
DELAWARE - 0.9%
1,160,000 State Economic Development
Authority RB, Water Development,
Wilmington Suburban, Series B
6.450%, 12/01/07 1,177,261
455,000 State Health Facilities Authority RB,
Beebe Medical Center Project,
Series A
5.000%, 6/01/07 455,332
115,000 State Housing Authority RB,
Single-Family Mortgage,
Series A-1, AMT, MBIA
5.300%, 7/01/11 116,012
--------------
1,748,605
DISTRICT OF COLUMBIA - 0.1%
255,000 Housing Finance Agency RB,
1330 7th Street Apartments,
Series A, AMT, FHA
3.000%, 12/01/09 249,849
--------------
FLORIDA - 0.3%
10,000 Dunedin, Health Facilities
Authority RB, Mease
Hospital, ETM
7.600%, 10/01/08 10,287
20,000 Florida State GO, ETM
5.900%, 7/01/08 20,236
425,000 Florida State, Board Registered
Parking System RB, University of
Florida, MBIA
5.000%, 8/01/10 425,425
10,000 Jacksonville, Electric Authority RB,
Third Installment, ETM
6.800%, 7/01/12 10,785
170,000 State Board of Education Capital
Outlay GO
8.400%, 6/01/07 170,656
--------------
637,389
GEORGIA - 2.2%
490,000 Hapeville, Development
Authority RB,
Intergovernmental (2) (3) (4) (5)
6.500%, 8/01/09 496,164
1,375,000 Randolph County, Sales Tax GO
3.210%, 4/01/12 1,341,477
1,350,000 Roswell, Multi-Family Housing
Authority RB, Chambrel Roswell,
FNMA (1)
3.970%, 11/15/32 1,350,000
Principal
Amount $ Value $
--------- -------
1,000,000 Smyrna, Multi-Family Housing
Authority RB, Hills of Post Village
Project, FNMA (1)
3.950%, 6/01/25 1,000,000
385,000 State Housing & Finance
Authority RB, Single-Family
Mortgage Program,
Sub-Series D-3
4.850%, 6/01/17 387,503
--------------
4,575,144
IDAHO - 0.0%
35,000 State Housing & Finance Association
RB, Single-Family Mortgage
Program, Sub-Series G-2, AMT
5.750%, 1/01/14 35,255
20,000 State Housing & Finance Association
RB, Single-Family Mortgage
Program, Sub-Series H-2,
AMT, FHA
5.850%, 1/01/14 20,296
--------------
55,551
ILLINOIS - 8.3%
5,000,000 Bolingbrook, Sales Tax RB (8)
5.150%, 1/01/26 5,013,750
400,000 Broadview GO
4.000%, 12/01/07 399,400
800,000 Cary, Special Tax, Special Service
Area No. 1, RADIAN
4.400%, 3/01/16 810,080
25,000 Chicago, Single-Family Mortgage
RB, Series B, AMT, GNMA,
FNMA, FHLMC
6.950%, 9/01/28 25,618
765,000 McCook, British Home Project RB,
(LOC: LaSalle Bank NA)
4.250%, 12/01/14 765,015
4,750,000 Morton Grove, Holocaust Museum
& Educational Facility RB
(LOC: LaSalle Bank NA) (1)
3.950%, 12/01/41 4,750,000
105,000 Pekin, Single-Family Mortgage
RB, ETM
7.400%, 12/01/08 109,164
4,574,000 Pingree Grove, Special Services
Area, Cambridge Lakes Project,
Series 05-1
5.250%, 3/01/15 4,718,859
415,000 State Health Facilities Authority
RB, Lutheran General Health
Systems, Series C, FSA
7.000%, 4/01/08 425,201
--------------
17,017,087
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 78
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
INDIANA - 1.0%
65,000 Allen County, Redevelopment
District Tax Increment TA,
I-469 Bluffton Road Economic
Development Project
5.800%, 11/15/07 65,297
1,095,000 Carmel, Industrial Redevelopment
BAN, District Golf
5.250%, 2/01/09 1,092,919
350,000 Hamilton County, Industrial
Redevelopment TA, District Tax
Increment Revenue
3.850%, 1/10/10 349,010
100,000 Lawrence, Multi-Family Housing RB,
Pinnacle Apartments Project, AMT,
FNMA, Mandatory Put (7)
5.150%, 5/01/08 100,760
45,000 State Health Facilities Financing
Authority RB, Refunded,
Series A, MBIA
5.000%, 11/01/09 46,162
105,000 State Health Facilities Financing
Authority RB, Unrefunded,
Series A, MBIA
5.000%, 11/01/09 107,666
285,000 State Housing Finance Authority RB,
Single-Family Mortgage, Series A-3,
AMT, GNMA, FNMA
5.375%, 1/01/23 290,076
--------------
2,051,890
IOWA - 1.9%
3,470,000 Coralville GO, BAN, Urban Renewal,
Series D (12)
4.250%, 6/01/09 3,485,997
10,000 Sioux City, Hospital RB, Series O,
MBIA, ETM
5.250%, 8/15/10 10,012
350,000 State Financial Authority, Solid
Waste Disposal RB, IPSCO
Project, AMT, Mandatory Put (7)
6.000%, 6/01/07 350,385
--------------
3,846,394
KANSAS - 3.3%
2,500,000 Junction City GO, Temporary
Notes, Series E
5.000%, 12/01/07 2,512,200
2,030,000 Sedgwick & Shawnee Counties,
Single-Family Mortgage RB,
Series A, AMT, GNMA, FNMA (8)
5.600%, 6/01/27 2,098,309
74,000 Wichita, Hospital RB, ETM
6.750%, 10/01/07 74,733
Principal
Amount $ Value $
--------- -------
1,025,000 Wyandotte County, Sales Tax RB,
1st Lien, Area B,
(LOC: Citibank NA)
3.750%, 12/01/12 1,018,502
1,000,000 Wyandotte County, Sales Tax RB,
1st Lien, Area C,
(LOC: Citibank NA)
3.850%, 12/01/13 996,460
--------------
6,700,204
KENTUCKY - 0.7%
1,260,000 State Area Development
Districts Financing GO,
Henderson, Series G1
5.750%, 12/01/20 1,298,266
55,000 State Turnpike Authority RB,
ETM (1)
6.625%, 7/01/08 55,948
75,000 State Turnpike Authority Toll
Road RB, ETM
6.125%, 7/01/08 75,978
--------------
1,430,192
LOUISIANA - 4.2%
140,000 Calcasieu Parish, Public
Transportation Authority RB,
Single-Family Mortgage,
Series A, AMT, GNMA, FNMA
5.850%, 10/01/32 140,281
4,879,994 Jefferson Parish, Financial
Authority RB, Single-Family
Mortgage, Series A, AMT (1) (2)
4.788%, 3/01/39 4,879,994
40,000 Jefferson Parish, Hospital Service
District No. 1 RB, ETM
7.250%, 1/01/09 41,408
1,065,000 Louisiana Local Government,
Environment Facilities RB,
Southeastern Louisiana University,
Series B, MBIA
4.375%, 2/01/37 1,029,653
60,000 Monroe-West Monroe,
Single-Family Mortgage
RB, ETM
7.200%, 8/01/10 62,846
115,000 Orleans Parish, School Board GO,
MBIA, ETM (6)
7.018%, 2/01/08 108,769
430,000 State Multi-Family Housing
Finance Agency RB, Section 8-202
Project, Series A
3.950%, 12/01/09 428,693
30,000 State Public Facilities Authority
Hospital RB, Pendleton Memorial
Methodist Hospital, ETM
5.000%, 6/01/08 30,414
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 79
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
2,000,000 State Public Facilities Authority RB,
Multi-Family Housing, River View,
FHLMC (1)
3.970%, 4/01/36 2,000,000
--------------
8,722,058
MARYLAND - 1.4%
2,180,000 Baltimore, Unrefunded Capital
Appreciation GO, Series A,
FGIC (6)
6.046%, 10/15/09 1,899,587
1,000,000 State Health & Higher Education
RB, Howard County General
Hospital, ETM
5.500%, 7/01/13 1,023,630
--------------
2,923,217
MASSACHUSETTS - 0.1%
125,000 State Health & Educational Facilities
Authority RB, MBIA
5.000%, 7/01/13 125,110
--------------
MICHIGAN - 1.7%
700,000 Detroit/Wayne County, Stadium
Authority RB, FGIC
5.250%, 2/01/09 714,805
520,000 Grand Valley, State University RB,
AMBAC
5.150%, 10/01/09 524,940
960,000 Kalamazoo, Hospital Finance
Authority RB, Borgess Medical
Center, Series A, AMBAC, ETM
5.500%, 6/01/08 978,912
45,000 Kalamazoo, Hospital Finance
Authority RB, Borgess Medical
Center, Series A, FGIC, ETM
6.125%, 7/01/07 45,086
360,000 Kalamazoo, Hospital Finance
Authority RB, Bronson Methodist,
MBIA
5.500%, 5/15/08 366,393
800,000 State Hospital Finance Authority RB,
Bay Medical Center, Series A, FSA,
Pre-Refunded @ 100 (9)
5.125%, 7/01/09 809,720
--------------
3,439,856
MINNESOTA - 1.5%
240,000 Alexandria, Industrial Development
RB, Seluemed Limited LLP Project,
AMT, (LOC: First Trust NA)
5.300%, 3/01/10 240,307
70,000 Burnsville, Hospital System RB,
Fairview Community Hospitals,
ETM (6)
4.034%, 5/01/12 50,654
Principal
Amount $ Value $
--------- -------
135,000 Dakota County, Community
Development Agency RB, Commons
on Marice Project, Series A
4.250%, 11/01/07 134,941
2,600,000 Minneapolis, Health Care System RB,
Fairview Health Services, Series C,
MBIA (1)
3.970%, 11/15/26 2,600,000
--------------
3,025,902
MISSISSIPPI - 2.6%
1,235,000 Mississippi Business Finance RB,
TT&W Farm Products Project,
AMT, (LOC: National Bank)
6.900%, 7/01/10 1,237,359
3,700,000 Mississippi Development RB,
Wilkinson County Correctional
Facilities, FGIC (1)
3.940%, 8/01/16 3,700,000
85,000 Mississippi Home Corporation RB,
Single-Family Mortgage, Series A,
AMT, FNMA, GNMA, USDA
3.150%, 6/01/20 84,879
425,000 Mississippi Hospital Equipment &
Facilities Authority RB, Hospital
South Central
4.000%, 12/01/07 424,622
--------------
5,446,860
MISSOURI - 4.4%
1,025,000 Boone County, Industrial
Development Authority RB,
Otscon Project, AMT, Mandatory
Put, (LOC: Boone County
National Bank) (1) (7)
4.750%, 5/01/12 1,037,474
500,000 Fort Zumwalt, School District GO,
Pre-Refunded @ 100 (9)
6.500%, 3/01/09 511,920
Pacific, Industrial Development
Authority RB, Clayton Project,
AMT, (LOC: Commerce Bank NA)
720,000 6.450%, 5/01/17 721,195
720,000 6.200%, 5/01/12 721,066
2,750,000 Riverside, Industrial Development
Authority RB, Riverside Horizons
Project, Series B, ACA (12)
4.500%, 5/01/27 2,732,812
100,000 St. Charles County, Industrial
Development Authority RB,
Garden View Care Center Project,
AMT, (LOC: U.S. Bank NA)
5.400%, 11/15/16 101,109
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 80
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
2,000,000 State Environmental Implementation
& Energy, Pollution Control RB,
Association Electric Coop
Thomas Hill
5.500%, 12/01/11 2,022,640
1,250,000 Waynesville COP, RADIAN (12)
4.200%, 4/01/17 1,265,975
--------------
9,114,191
MONTANA - 0.0%
20,000 State Board Investment RB, Payroll
Tax Workers Compensation Project,
MBIA, ETM
6.875%, 6/01/11 20,823
--------------
NEBRASKA - 0.1%
100,000 Madison County, Hospital
Authority RB, Faith Regional
Healthcare Services Project,
RADIAN
4.850%, 7/01/09 102,078
--------------
NEVADA - 3.0%
530,000 Carson City, Hospital RB, Tahoe
Hospital Project, Series A, RADIAN
2.300%, 9/01/07 526,210
5,200,000 Clark County, Pollution Control
RB, Nevada Power Company
Project, ACA
5.300%, 10/01/11 5,224,960
340,000 Henderson, Local Improvement
Districts SA, Lake Las Vegas,
Sub-Series B-2
3.900%, 8/01/07 338,905
35,000 State Municipal Bond GO,
Project No. 28-31-C, ETM
7.200%, 1/01/09 35,550
--------------
6,125,625
NEW JERSEY - 6.3%
3,895,000 Atlantic City, Municipal Utilities
Authority RB, Sub-Water Systems
(2) (3) (4)
5.000%, 1/01/08 3,910,541
1,040,000 Bloomfield, Parking Authority RB,
Project Notes
5.875%, 5/17/07 1,040,197
5,000,000 Cliffside Park GO, BAN
5.750%, 5/14/07 5,001,000
1,000,000 Haddon Township GO, BAN,
Series A (5)
5.800%, 5/16/07 1,000,120
15,000 Hudson County GO
5.125%, 8/01/08 15,134
Principal
Amount $ Value $
--------- -------
125,000 State Health Care Facilities
Financing Authority RB, Allegany
Health, Our Lady of Lourdes,
ETM, MBIA
5.000%, 7/01/08 125,445
State Higher Education Assistance
Authority RB, Series A,
AMT, AMBAC
985,000 5.150%, 6/01/12 992,900
940,000 5.050%, 6/01/11 944,973
--------------
13,030,310
NEW MEXICO - 0.3%
575,000 State, Mortgage Financial Authority
RB, Single-Family Housing,
Series A2, Class I, AMT,
GNMA, FNMA, FHLMC
3.900%, 1/01/19 574,252
--------------
NEW YORK - 3.3%
100,000 Freeport GO
4.500%, 8/01/08 100,807
1,000,000 Haverstraw GO, Taxable Urban
Renewal Notes (5)
5.625%, 5/17/07 1,000,130
590,000 Highland Hospital RB, Rochester (5)
4.950%, 8/01/07 589,257
2,165,000 New York State Housing Finance
Agency RB, Multi-Family Housing,
Series B, AMT, SONYMA
4.750%, 8/15/37 2,168,550
445,000 Saratoga County, Industrial
Development Agency RB,
Saratoga Hospital Project,
Series A
5.000%, 12/01/07 447,203
95,000 State Dormitory Authority RB,
State Supported Debt,
Unrefunded, Series B
5.700%, 2/15/09 97,033
525,000 State Urban Development RB,
Capital Appreciation,
Series O, FSA (6)
11.435%, 1/01/11 422,452
750,000 Tobacco Settlement Financing RB,
Series B-1C
5.250%, 6/01/13 761,610
1,135,000 Tobacco Settlement Financing RB,
Series C-1
5.250%, 6/01/12 1,137,145
--------------
6,724,187
NORTH CAROLINA - 0.2%
25,000 Pasquotank County, Public Schools
Project, COP, MBIA
5.000%, 6/01/15 25,334
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 81
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
55,000 State Medical Care Community
Hospital RB, Memorial Mission
Hospital Project, ETM
7.625%, 10/01/08 56,730
125,000 State Medical Care Community RB,
North Carolina Housing Foundation
Project, ACA
6.000%, 8/15/10 128,196
125,000 State Medical Care Community RB,
Saint Joseph Hospital Project,
AMBAC, ETM
5.000%, 10/01/08 125,127
--------------
335,387
NORTH DAKOTA - 0.1%
275,000 State Housing Finance Agency RB,
Home Mortgage Program,
Series A, AMT
5.200%, 7/01/19 277,720
--------------
OHIO - 0.8%
75,000 Cuyahoga County, Deaconess
Hospital Project RB, ETM
6.750%, 11/01/09 77,652
1,445,000 Fairlawn, Local School District
GO, School Construction, BAN
4.390%, 5/24/07 1,445,520
185,000 Franklin County, First Mortgage RB,
OCLC Project, ETM
7.500%, 6/01/09 188,769
--------------
1,711,941
OKLAHOMA - 1.9%
Pottawatomie County, Shawnee
Public Schools Project RB
440,000 5.000%, 9/01/07 441,513
835,000 5.000%, 9/01/08 846,398
930,000 5.000%, 9/01/09 950,562
1,500,000 Tulsa, Industrial Authority TA,
Series A (5)
7.020%, 1/01/12 1,525,650
175,000 Tulsa, Industrial Authority TA,
Series B (5)
6.970%, 7/01/11 177,683
--------------
3,941,806
OREGON - 0.9%
525,000 State Housing & Community
Services Department RB,
Single-Family Mortgage Program,
Series F, AMT, MBIA
5.650%, 7/01/28 536,335
1,320,000 State Housing & Community
Services Department RB,
Single-Family Mortgage
Program, Series J, AMT, FNMA
5.750%, 7/01/29 1,343,813
--------------
1,880,148
Principal
Amount $ Value $
--------- -------
PENNSYLVANIA - 4.4%
10,000 Berks County GO, Second Series,
MBIA
3.100%, 11/15/08 9,891
1,775,000 Bucks County, Industrial
Development Authority RB,
School Lane Charter School,
Series A
4.600%, 3/15/17 1,781,638
1,000,000 Chester County, Health &
Education Facilities Authority RB,
Chester County Hospital, MBIA
5.625%, 7/01/08 1,008,100
170,000 Lakeland, School District
GO, ETM
8.875%, 8/15/10 184,605
2,000,000 Philadelphia, Authority for
Industrial Development RB,
PGH Development Corporation
5.500%, 7/01/10 2,003,840
75,000 Philadelphia, Hospitals Authority RB,
Thomas Jefferson University
Hospital, ETM
7.000%, 7/01/08 76,420
2,600,000 Pittsburgh, Urban Redevelopment
Authority RB, Multi-Family Housing,
Louis Mason Junior Project,
Mandatory Put (7)
5.000%, 12/01/07 2,600,312
1,370,000 State Higher Education Facilities
Authority RB, St. Francis
Independent Colleges-Universities
5.000%, 11/01/11 1,378,878
--------------
9,043,684
SOUTH CAROLINA - 0.7%
1,500,000 State Housing Finance &
Development Authority RB,
Multi-Family Housing,
Spartanburg Project, Series A,
FHLMC (1)
3.970%, 8/01/31 1,500,000
--------------
SOUTH DAKOTA - 0.1%
250,000 State Lease Revenue Trust COP,
Series B, FSA
6.500%, 9/01/08 254,550
--------------
TENNESSEE - 0.8%
1,135,000 Knox County, Health Educational
& Housing Facilities RB,
University Health Systems
4.125%, 4/01/11 1,135,170
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 82
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
320,000 Oak Ridge, Industrial Development
Board RB, (LOC: Allied Irish
Bank PLC) (1)
3.950%, 9/01/32 320,000
245,000 State Housing Development
Agency RB, Homeownership
Program, Series 1D
4.700%, 7/01/15 245,008
--------------
1,700,178
TEXAS - 8.3%
380,000 Brownsville GO, Capital Appreciation,
AMBAC (6)
12.711%, 2/15/11 303,810
35,000 Dallas County GO, Series B
5.300%, 8/15/07 35,161
410,000 Galveston County, Single-Family
Housing Mortgage RB,
Mortgage-Backed Securities Project,
Series A, AMT, GNMA, FNMA
6.200%, 12/01/32 410,574
5,900,000 Hunt, Memorial Hospital District,
XLCA (1)
3.980%, 2/01/26 5,900,000
2,665,000 Pasadena, Independent School
District GO, Building, Series B, FSA (1)
3.940%, 2/01/35 2,665,000
2,885,000 Retama, Development Special
Facilities RB, Retama Racetrack,
ETM (5)
8.750%, 12/15/10 3,232,556
1,640,000 State Department of Housing &
Community Affairs RB, High
Point III Project, Series A, FNMA (1)
3.980%, 2/01/23 1,640,000
2,630,000 Travis County, Multi-Family Housing
Financial Corporation RB,
Tanglewood Apartments, FNMA
3.930%, 12/15/29 2,630,000
260,000 Valley Community Hospital
RB, ETM
7.500%, 4/01/09 272,077
--------------
17,089,178
VIRGINIA - 9.1%
445,000 Louisa, Industrial Development
Authority RB, Pollution Control
5.250%, 12/01/08 449,886
2,245,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
1st Tier, Sub-Series C, ETM (6)
4.060%, 8/15/08 2,138,721
Principal
Amount $ Value $
--------- -------
11,285,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
Series B, ACA,
Pre-Refunded @ 45.5 (6) (9)
4.010%, 8/15/22 4,891,596
13,915,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
Series B, ACA,
Pre-Refunded @ 48.201 (6) (9)
4.010%, 8/15/21 6,389,629
585,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
Series B, ACA-CBI,
Pre-Refunded @ 40.387 (6) (9)
3.945%, 8/15/24 225,079
3,795,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
Series B, ACA-CBI,
Pre-Refunded @ 57.582 (6) (9)
4.010%, 8/15/18 2,081,785
1,740,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
Series B, Pre-Refunded @ 28.382
(6) (9)
4.022%, 8/15/30 470,444
700,000 Pocahontas Parkway Association,
Toll Road RB, Capital Appreciation,
Series B, Pre-Refunded @ 82.1
(6) (9)
3.995%, 8/15/12 547,491
1,500,000 Poplar Hill, Community
Development Authority, COP,
Series A (5)
5.500%, 9/01/34 1,468,365
--------------
18,662,996
UTAH - 0.6%
Salt Lake County RB, Westminster
College Project
180,000 4.500%, 10/01/08 180,878
200,000 4.500%, 10/01/09 201,636
230,000 4.500%, 10/01/10 232,243
550,000 4.500%, 10/01/11 556,798
--------------
1,171,555
WEST VIRGINIA - 0.0%
45,000 Cabell, Putnam, & Wayne Counties,
Single-Family Residential
Mortgage RB, ETM, FGIC
7.375%, 4/01/10 47,088
-----------
WISCONSIN - 3.7%
500,000 Antigo, Taxable-Bond Anticipation
Notes RB (5)
6.375%, 8/01/09 507,045
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 83
- --------------------------------------------------------------------------------
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
Principal
Amount $ Value $
--------- -------
1,250,000 Cedarburg GO (5)
5.875%, 12/01/09 1,261,237
1,000,000 Fond Du Lac, Water Works RB, BAN
4.000%, 3/01/10 1,001,020
1,250,000 Kronenwetter, Anticipation Notes
4.750%, 3/01/11 1,260,638
350,000 Oconomowoc, Industrial
Development RB, Cl&D
Graphics Project, AMT,
(LOC: Marshall & Ilslay)
5.650%, 9/15/07 351,001
900,000 Oshkosh, Industrial Development
Authority RB, Don Evans Project,
AMT, Mandatory Put,
(LOC: Marshall & Ilslay) (7)
5.500%, 12/01/07 910,044
1,500,000 State Health & Educational Facilities
RB, Aurora Health Care, MBIA
5.000%, 8/15/09 1,534,425
870,000 State Housing & Economic
Development Authority RB,
AMT, Series E
5.800%, 9/01/17 877,430
--------------
7,702,840
--------------
TOTAL MUNICIPAL BONDS
(Cost $197,544,287) 197,647,294
--------------
CORPORATE OBLIGATIONS - 1.9%
1,062,425 IIS/Syska Holdings Energy (10)
3.900%, 8/15/08 1,022,659
250,000 Kidspeace National Centers of
Georgia, USDA (1) (2) (3) (4)
6.300%, 12/01/28 254,320
2,483,496 Niagara Elmwood (2) (5)
6.120%, 12/15/11 2,484,018
--------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $3,793,330) 3,760,997
--------------
Shares
------
SHORT-TERM INVESTMENT - 3.3%
6,826,970 BlackRock Institutional
Muni Fund Portfolio, 3.69% (11) 6,826,970
--------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $6,826,970) 6,826,970
--------------
TOTAL INVESTMENTS - 101.3%
(Cost $208,164,587) 208,235,261
--------------
OTHER ASSETS LESS
LIABILITIES - (1.3)% (2,604,861)
--------------
NET ASSETS - 100.0% $ 205,630,400
==============
(1) Variable Rate Security -- Rate disclosed is as of April 30, 2007.
(2) Private Placement Security.
(3) Security considered restricted. (See Note 2 in Notes to Financial
Statements.)
(4) Security considered illiquid. On April 30, 2007, the value of these
securities amounted to $7,661,025, representing 3.7% of the net assets of
the Fund.
(5) Security is taxable.
(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) Step Bond -- Coupon rate increases in increments to maturity. Rate
disclosed is as of April 30, 2007.
(9) Pre-Refunded Security -- The maturity date shown is the pre-refunded date.
(10) 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, 2007, the
value of this security amounted to $1,022,659, representing 0.5% of the
net assets of the Fund.
(11) Rate shown is the 7-day effective yield as of April 30, 2007.
(12) Security purchased on a when-issued basis.
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
GNMA -- Government National Mortgage Association
GO -- General Obligation
LLP -- Limited Liability Partnership
LOC -- Letter of Credit
NA -- National Association
PLC -- Public Limited Company
RB -- Revenue Bond
SA -- Special Assessment
TA -- Tax Allocation
Guaranteed as to principal and interest by the organization identified below:
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Company
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
RADIAN -- RADIAN Guaranty
SONYMA -- SONYMA Guaranty
USDA -- USDA Guaranty
XLCA -- XL Capital Assurance
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 84
This page intentionally left blank.
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2007 (UNAUDITED)
NORTH INTERNATIONAL U.S. SMALL
AMERICAN DIVERSIFIED U.S. AND MID CAP
EQUITY VALUE OPPORTUNITIES OPPORTUNITIES
FUND FUND FUND FUND
-------------- -------------- ------------- -------------
ASSETS
Investments in securities, at value - Note 2 .............. $1,003,075,645 $12,677,665 $297,957,029 $10,769,309
Foreign currency .......................................... -- 6,091 -- 227
Receivable for Fund shares sold ........................... 16,217 -- 212,984 --
Initial margin for futures contracts ...................... 451,810 -- -- --
Dividends and tax reclaims receivable ..................... 993,595 65,163 100,051 --
Interest receivable ....................................... 119,377 889 142,852 3,657
Receivable for securities sold ............................ 4,686,939 168,086 1,284,530 23,649
Appreciated swap contracts, at value - Note 2 ............. -- -- -- --
Unrealized appreciation on spot contracts ................. 2,209 118 -- --
Unrealized appreciation on forward contracts .............. -- -- -- --
Prepaid expenses .......................................... 93,547 20,535 43,285 26,491
Deferred offering costs - Note 2 .......................... -- 13,339 -- 3,132
Due from Investment Advisor - Note 3 ...................... -- 14,240 -- 5,693
-------------- ----------- ------------ -----------
TOTAL ASSETS ........................................ 1,009,439,339 12,966,126 299,740,731 10,832,158
LIABILITIES
Foreign taxes payable ..................................... -- 336 -- --
Foreign currency payable .................................. -- -- -- --
Variation margin payable .................................. 127,128 -- -- --
Income distributions payable .............................. -- -- -- --
Depreciated swap contracts, at value - Note 2 ............. -- -- -- --
Unrealized depreciation on spot contracts ................. -- 103 -- --
Unrealized depreciation on forward contracts .............. -- -- -- --
Payable for securities purchased .......................... 5,037,082 150,394 484,068 131,113
Payable for Fund shares redeemed .......................... -- -- 158,148 --
Investment Advisory fees payable - Note 3 ................. 206,835 -- 243,559 --
Sub-administration fees payable - Note 3 .................. 10,709 1,152 27,115 970
Distribution fees payable - Note 3 ........................ 33 257 1,095 278
Trustees' fees payable - Note 5 ........................... 27,086 2,950 6,410 3,072
Accrued expenses and other liabilities .................... 94,086 59,859 47,919 41,587
-------------- ----------- ------------ -----------
TOTAL LIABILITIES ................................... 5,502,959 215,051 968,314 177,020
-------------- ----------- ------------ -----------
NET ASSETS ............................................. $1,003,936,380 $12,751,075 $298,772,417 $10,655,138
============== =========== ============ ===========
NET ASSETS
Capital paid-in ........................................... $ 784,138,299 $10,225,007 $244,485,498 $ 9,466,439
Undistributed (distributions in excess of)
net investment income .................................. 6,173,139 62,690 104,934 (23,983)
Accumulated net realized gain (loss)
on investments ......................................... 89,294,468 733,373 11,349,825 268,988
Accumulated foreign capital gains tax
on appreciated securities .............................. -- (336) -- --
Net unrealized appreciation (depreciation)
on investments ......................................... 124,292,450 1,730,222 42,832,160 943,658
Net unrealized appreciation (depreciation)
on futures ............................................. 36,733 -- -- --
Net unrealized appreciation on swap contracts ............. -- -- -- --
Net unrealized appreciation (depreciation) on foreign
currency translations .................................. 1,291 119 -- 36
-------------- ----------- ------------ -----------
NET ASSETS ............................................. $1,003,936,380 $12,751,075 $298,772,417 $10,655,138
============== =========== ============ ===========
Investor Shares:
Net assets ................................................ $1,003,819,035 $11,428,537 $292,939,179 $ 9,222,103
Total shares outstanding at end of period ................. 79,108,976 914,253 12,468,630 811,697
Net asset value, offering and redemption
price per share (net assets / shares outstanding) ...... $ 12.69 $ 12.50 $ 23.49 $ 11.36
Advisor Shares:
Net assets ................................................ $ 117,345 $ 1,322,538 $ 5,833,238 $ 1,433,035
Total shares outstanding at end of period ................. 9,258 105,910 248,860 126,305
Net asset value, offering and redemption
price per share (net assets / shares outstanding) ...... $ 12.68 $ 12.49 $ 23.44 $ 11.35
Cost of securities ........................................... $ 878,783,195 $10,947,443 $255,124,869 $ 9,825,651
Cost of foreign currency ..................................... $ -- $ 6,091 $ -- $ 192
Proceeds received for swap contracts ......................... $ -- $ -- $ -- $ --
EMERGING
INTERNATIONAL MARKET ENHANCED STRATEGIC
ALPHA EQUITY INCOME BOND
FUND FUND FUND FUND
------------- ----------- ------------ -----------
ASSETS
Investments in securities, at value - Note 2 .............. $57,588,369 $16,573,817 $117,400,557 $47,556,070
Foreign currency .......................................... -- -- -- 403,148
Receivable for Fund shares sold ........................... 11,000 -- 22,500 --
Initial margin for futures contracts ...................... -- -- -- 235,873
Dividends and tax reclaims receivable ..................... 182,818 31,825 -- --
Interest receivable ....................................... 1,515 1,282 329,105 341,620
Receivable for securities sold ............................ -- 175,258 28,358 1,619,595
Appreciated swap contracts, at value - Note 2 ............. -- -- -- 75,391
Unrealized appreciation on spot contracts ................. 2,223 283 -- --
Unrealized appreciation on forward contracts .............. -- -- -- 132,365
Prepaid expenses .......................................... 24,087 35,415 27,018 35,189
Deferred offering costs - Note 2 .......................... -- 3,704 -- 1,630
Due from Investment Advisor - Note 3 ...................... -- -- 886 10,908
----------- ----------- ------------ -----------
TOTAL ASSETS ........................................ 57,810,012 16,821,584 117,808,424 50,411,789
LIABILITIES
Foreign taxes payable ..................................... -- 4,716 -- --
Foreign currency payable .................................. -- 26,986 -- --
Variation margin payable .................................. -- -- -- 107,920
Income distributions payable .............................. -- -- 39 --
Depreciated swap contracts, at value - Note 2 ............. -- -- -- 30,943
Unrealized depreciation on spot contracts ................. -- 146 -- 138
Unrealized depreciation on forward contracts .............. -- -- -- 86,141
Payable for securities purchased .......................... 637,793 498,184 5,337,266 16,637,107
Payable for Fund shares redeemed .......................... -- -- 214 --
Investment Advisory fees payable - Note 3 ................. 30,579 5,786 -- --
Sub-administration fees payable - Note 3 .................. 5,186 1,488 10,223 3,045
Distribution fees payable - Note 3 ........................ 3,728 258 234 795
Trustees' fees payable - Note 5 ........................... 3,589 3,146 4,436 3,288
Accrued expenses and other liabilities .................... 55,700 80,503 56,471 106,773
----------- ----------- ------------ -----------
TOTAL LIABILITIES ................................... 736,575 621,213 5,408,883 16,976,150
----------- ----------- ------------ -----------
NET ASSETS ............................................. $57,073,437 $16,200,371 $112,399,541 $33,435,639
=========== =========== ============ ===========
NET ASSETS
Capital paid-in ........................................... $59,456,924 $12,930,716 $113,872,070 $33,021,962
Undistributed (distributions in excess of)
net investment income .................................. (152,771) (13,235) (66,704) 104,160
Accumulated net realized gain (loss)
on investments ......................................... (8,314,824) 579,355 (780,497) (53,347)
Accumulated foreign capital gains tax
on appreciated securities .............................. -- (4,716) -- --
Net unrealized appreciation (depreciation)
on investments ......................................... 6,080,435 2,708,542 (625,328) 312,394
Net unrealized appreciation (depreciation)
on futures ............................................. -- -- -- (33,505)
Net unrealized appreciation on swap contracts ............. -- -- -- 29,327
Net unrealized appreciation (depreciation) on foreign
currency translations .................................. 3,673 (291) -- 54,648
----------- ----------- ------------ -----------
NET ASSETS ............................................. $57,073,437 $16,200,371 $112,399,541 $33,435,639
=========== =========== ============ ===========
Investor Shares:
Net assets ................................................ $37,962,621 $14,938,622 $111,230,112 $29,271,939
Total shares outstanding at end of period ................. 3,194,962 1,203,164 11,282,007 2,878,680
Net asset value, offering and redemption
price per share (net assets / shares outstanding)....... $ 11.88 $ 12.42 $ 9.86 $ 10.17
Advisor Shares:
Net assets ................................................ $19,110,816 $ 1,261,749 $ 1,169,429 $ 4,163,700
Total shares outstanding at end of period ................. 1,610,643 101,746 118,578 409,469
Net asset value, offering and redemption
price per share (net assets / shares outstanding) ...... $ 11.87 $ 12.40 $ 9.86 $ 10.17
Cost of securities ........................................... $51,507,934 $13,865,275 $118,025,885 $47,243,676
Cost of foreign currency ..................................... $ -- $ -- $ -- $ 403,760
Proceeds received for swap contracts ......................... $ -- $ -- $ -- $ 15,121
SHORT-TERM
TOTAL RETURN MUNICIPAL MUNICIPAL
FIXED INCOME BOND BOND
FUND FUND FUND
------------ ------------ ------------
ASSETS
Investments in securities, at value - Note 2 .............. $29,481,738 $325,473,002 $208,235,261
Foreign currency .......................................... 203 -- --
Receivable for Fund shares sold ........................... 38,748 6,420,501 552,930
Initial margin for futures contracts ...................... 4,930 -- --
Dividends and tax reclaims receivable ..................... -- -- --
Interest receivable ....................................... 160,315 3,590,869 2,256,600
Receivable for securities sold ............................ 1,239,797 1,313,486 4,899,497
Appreciated swap contracts, at value - Note 2 ............. -- -- --
Unrealized appreciation on spot contracts ................. -- -- --
Unrealized appreciation on forward contracts .............. -- -- --
Prepaid expenses .......................................... 21,041 47,009 37,055
Deferred offering costs - Note 2 .......................... -- -- --
Due from Investment Advisor - Note 3 ...................... 16,412 -- --
----------- ------------ ------------
TOTAL ASSETS ........................................ 30,963,184 336,844,867 215,981,343
LIABILITIES
Foreign taxes payable ..................................... -- -- --
Foreign currency payable .................................. -- -- --
Variation margin payable .................................. 3,625 -- --
Income distributions payable .............................. -- 59,061 141,664
Depreciated swap contracts, at value - Note 2 ............. -- -- --
Unrealized depreciation on spot contracts ................. -- -- --
Unrealized depreciation on forward contracts .............. -- -- --
Payable for securities purchased .......................... 5,553,687 5,040,289 9,811,044
Payable for Fund shares redeemed .......................... -- 682,990 265,887
Investment Advisory fees payable - Note 3 ................. -- 76,435 43,017
Sub-administration fees payable - Note 3 .................. 2,293 28,656 18,554
Distribution fees payable - Note 3 ........................ 220 4,172 1,298
Trustees' fees payable - Note 5 ........................... 3,267 6,716 5,618
Accrued expenses and other liabilities .................... 46,145 72,360 63,861
----------- ------------ ------------
TOTAL LIABILITIES ................................... 5,609,237 5,970,679 10,350,943
----------- ------------ ------------
NET ASSETS ............................................. $25,353,947 $330,874,188 $205,630,400
=========== ============ ============
NET ASSETS
Capital paid-in ........................................... $25,448,747 $329,497,464 $205,842,568
Undistributed (distributions in excess of)
net investment income .................................. (31,804) 454,876 187,445
Accumulated net realized gain (loss)
on investments ......................................... (99,935) (253,197) (470,287)
Accumulated foreign capital gains tax
on appreciated securities .............................. -- -- --
Net unrealized appreciation (depreciation)
on investments ......................................... 45,187 1,175,045 70,674
Net unrealized appreciation (depreciation)
on futures ............................................. (8,248) -- --
Net unrealized appreciation on swap contracts ............. -- -- --
Net unrealized appreciation (depreciation) on foreign
currency translations .................................. -- -- --
----------- ------------ ------------
NET ASSETS ............................................. $25,353,947 $330,874,188 $205,630,400
=========== ============ ============
Investor Shares:
Net assets ................................................ $24,265,803 $314,491,846 $199,572,759
Total shares outstanding at end of period ................. 2,465,876 31,215,370 20,048,321
Net asset value, offering and redemption
price per share (net assets / shares outstanding) ...... $ 9.84 $ 10.07 $ 9.95
Advisor Shares:
Net assets ................................................ $ 1,088,144 $ 16,382,342 $ 6,057,641
Total shares outstanding at end of period ................. 110,438 1,626,521 608,679
Net asset value, offering and redemption
price per share (net assets / shares outstanding) ...... $ 9.85 $ 10.07 $ 9.95
Cost of securities ........................................... $29,436,551 $324,297,957 $208,164,587
Cost of foreign currency ..................................... $ 203 $ -- $ --
Proceeds received for swap contracts ......................... $ -- $ -- $ --
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 86 & 87
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED)
NORTH INTERNATIONAL U.S. SMALL
AMERICAN DIVERSIFIED U.S. AND MID CAP
EQUITY VALUE OPPORTUNITIES OPPORTUNITIES
FUND FUND FUND FUND
------------ ------------- ------------- -------------
INVESTMENT INCOME
Dividend income ............................................... $ 12,257,200 $ 233,937 $ 1,009,411 $ 26,739
Interest income ............................................... 406,638 4,708 765,957 23,764
Foreign taxes withheld ........................................ (137,991) (25,722) (3,476) (173)
------------ ---------- ----------- --------
TOTAL INCOME ............................................... 12,525,847 212,923 1,771,892 50,330
EXPENSES
Investment Advisory fees -- Note 3 ............................ 1,359,445 57,262 1,335,332 46,905
Sub-administration fees -- Note 3 ............................. 66,861 6,438 150,106 5,271
Trustees fees -- Note 5 ....................................... 37,091 6,713 14,428 6,794
Distribution fees -- Note 3 ................................... 191 1,445 3,608 1,156
Legal fees .................................................... 68,134 12,184 20,768 9,458
Insurance ..................................................... 58,732 2,624 16,296 4,917
Transfer agent fees ........................................... 52,416 38,611 44,649 38,309
Custodian fees ................................................ 38,788 24,232 14,252 2,672
Printing expenses ............................................. 28,942 14,633 11,173 5,382
Registration fees ............................................. 20,911 3,099 37,676 6,813
Audit fees .................................................... 14,292 18,364 13,498 13,498
Pricing fees .................................................. 1,787 11,403 611 354
Amortization of deferred offering costs -- Note 2 ............. -- 16,021 -- 6,137
Other ......................................................... 15,090 2,139 4,561 2,523
------------ ---------- ----------- --------
TOTAL EXPENSES ............................................. 1,762,680 215,168 1,666,958 150,189
Expenses waived by Investment Advisor -- Note 3 ............... -- (57,262) -- (46,905)
Reimbursement from Investment Advisor ......................... -- (84,882) -- (36,461)
------------ ---------- ----------- --------
NET EXPENSES ............................................... 1,762,680 73,024 1,666,958 66,823
------------ ---------- ----------- --------
NET INVESTMENT INCOME (LOSS) ............................... 10,763,167 139,899 104,934 (16,493)
------------ ---------- ----------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES, SWAP CONTRACTS,
FOREIGN CAPITAL GAINS TAX ON
APPRECIATED SECURITIES AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on investments sold .................. 91,696,446+ 733,247 11,837,917 345,179
Net realized gain (loss) on futures ........................... 719,498 -- -- --
Net realized gain on swap contracts ........................... -- -- -- --
Net realized gain (loss) on foreign currency transactions ..... (7,611) 209 (684) (91)
------------ ---------- ----------- --------
Net realized gain (loss) on investments,
futures, swap contracts and foreign
currency transactions ................................ 92,408,333 733,456 11,837,233 345,088
------------ ---------- ----------- --------
Change in unrealized appreciation (depreciation)
on investments ............................................. (17,604,878) 1,287,833 16,067,608 638,004
Change in unrealized appreciation (depreciation)
on futures ................................................. 36,733 -- -- --
Change in unrealized appreciation on swap contracts -- -- -- --
Change in unrealized on foreign capital gains
tax on appreciated securities .............................. -- 240 -- --
Change in unrealized appreciation (depreciation)
on foreign currency translations ........................... 9,288 68 37 37
------------ ---------- ----------- --------
Net change in unrealized appreciation
(depreciation) on investments, futures, swap
contracts, foreign capital gains tax on appreciated
securities and foreign currency translations ......... (17,558,857) 1,288,141 16,067,645 638,041
------------ ---------- ----------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ................................................ 74,849,476 2,021,597 27,904,878 983,129
------------ ---------- ----------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................................. $ 85,612,643 $2,161,496 $28,009,812 $966,636
============ ========== =========== ========
EMERGING
INTERNATIONAL MARKET ENHANCED STRATEGIC
ALPHA EQUITY INCOME BOND
FUND FUND FUND FUND
------------- ------------ ---------- ---------
INVESTMENT INCOME
Dividend income ............................................ $ 461,681 $ 136,891 $ -- $ --
Interest income ............................................ 34,311 4,103 3,236,062 812,821
Foreign taxes withheld ..................................... (24,309) (9,146) -- --
---------- ---------- ---------- ---------
TOTAL INCOME ............................................ 471,683 131,848 3,236,062 812,821
EXPENSES
Investment Advisory fees -- Note 3 ......................... 271,632 75,678 137,071 112,518
Sub-administration fees -- Note 3 .......................... 31,327 8,509 61,654 16,861
Trustees fees -- Note 5 .................................... 7,911 6,988 9,812 7,102
Distribution fees -- Note 3 ................................ 27,072 1,456 1,435 3,395
Legal fees ................................................. 11,344 9,721 14,202 57,122
Insurance .................................................. 9,570 5,074 12,458 6,461
Transfer agent fees ........................................ 38,649 38,363 39,149 38,336
Custodian fees ............................................. 12,037 35,386 12,412 5,323
Printing expenses .......................................... 5,336 25,208 6,797 8,547
Registration fees .......................................... 24,115 -- 20,882 14,210
Audit fees ................................................. 15,013 19,678 14,580 15,050
Pricing fees ............................................... 1,774 2,756 12,266 39,585
Amortization of deferred offering costs -- Note 2 .......... -- 7,258 -- 2,120
Other ...................................................... 2,705 593 3,283 2,464
---------- ---------- ---------- ---------
TOTAL EXPENSES .......................................... 458,485 236,668 346,001 329,094
Expenses waived by Investment Advisor -- Note 3 ............ (83,162) (75,678) (125,235) (112,518)
Reimbursement from Investment Advisor ...................... -- (27,095) -- (40,660)
---------- ---------- ---------- ---------
NET EXPENSES ............................................ 375,323 133,895 220,766 175,916
---------- ---------- ---------- ---------
NET INVESTMENT INCOME (LOSS) ............................ 96,360 (2,047) 3,015,296 636,905
---------- ---------- ---------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES, SWAP CONTRACTS,
FOREIGN CAPITAL GAINS TAX ON
APPRECIATED SECURITIES AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on investments sold ............... 3,063,653 801,745 (412,031) 142,336
Net realized gain (loss) on futures ........................ -- -- -- (4,268)
Net realized gain on swap contracts ........................ -- -- -- 8,250
Net realized gain (loss) on foreign currency transactions .. 8,587 (6,654) -- (87,520)
---------- ---------- ---------- ---------
Net realized gain (loss) on investments,
futures, swap contracts and foreign
currency transactions ............................. 3,072,240 795,091 (412,031) 58,798
---------- ---------- ---------- ---------
Change in unrealized appreciation (depreciation)
on investments .......................................... 3,200,369 1,718,687 (242,692) 20,439
Change in unrealized appreciation (depreciation)
on futures .............................................. -- -- -- 57,705
Change in unrealized appreciation on swap contracts -- -- -- 22,936
Change in unrealized on foreign capital gains
tax on appreciated securities ........................... -- 1,369 -- --
Change in unrealized appreciation (depreciation)
on foreign currency translations ........................ 355 (303) -- 108,811
---------- ---------- ---------- ---------
Net change in unrealized appreciation
(depreciation) on investments, futures, swap
contracts, foreign capital gains tax on appreciated
securities and foreign currency translations ...... 3,200,724 1,719,753 (242,692) 209,891
---------- ---------- ---------- ---------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ............................................. 6,272,964 2,514,844 (654,723) 268,689
---------- ---------- ---------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................... $6,369,324 $2,512,797 $2,360,573 $ 905,594
========== ========== ========== =========
SHORT-TERM
TOTAL RETURN MUNICIPAL MUNICIPAL
FIXED INCOME BOND BOND
FUND FUND FUND
------------- ---------- ----------
INVESTMENT INCOME
Dividend income ............................................ $ -- $ -- $ --
Interest income ............................................ 624,797 6,664,451 4,354,459
Foreign taxes withheld ..................................... -- -- --
-------- ---------- ----------
TOTAL INCOME ............................................ 624,797 6,664,451 4,354,459
EXPENSES
Investment Advisory fees -- Note 3 ......................... 28,854 567,870 396,164
Sub-administration fees -- Note 3 .......................... 12,977 159,587 111,364
Trustees fees -- Note 5 .................................... 6,984 15,136 12,665
Distribution fees -- Note 3 ................................ 1,328 19,043 7,053
Legal fees ................................................. 10,113 21,974 18,335
Insurance .................................................. 9,098 15,356 14,932
Transfer agent fees ........................................ 38,312 40,782 40,016
Custodian fees ............................................. 6,872 8,720 7,190
Printing expenses .......................................... 4,790 10,929 8,945
Registration fees .......................................... 18,022 35,591 25,735
Audit fees ................................................. 14,580 13,993 14,058
Pricing fees ............................................... 7,685 34,967 21,377
Amortization of deferred offering costs -- Note 2 .......... -- -- --
Other ...................................................... 2,450 4,744 4,068
-------- ---------- ----------
TOTAL EXPENSES .......................................... 162,065 948,692 681,902
Expenses waived by Investment Advisor -- Note 3 ............ (28,854) (148,825) (130,121)
Reimbursement from Investment Advisor ...................... (85,717) -- --
-------- ---------- ----------
NET EXPENSES ............................................ 47,494 799,867 551,781
-------- ---------- ----------
NET INVESTMENT INCOME (LOSS) ............................ 577,303 5,864,584 3,802,678
-------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES, SWAP CONTRACTS,
FOREIGN CAPITAL GAINS TAX ON
APPRECIATED SECURITIES AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on investments sold ............... 67,660 2,357 5,787
Net realized gain (loss) on futures ........................ 14,561 -- --
Net realized gain on swap contracts ........................ -- -- --
Net realized gain (loss) on foreign currency transactions .. -- -- --
-------- ---------- ----------
Net realized gain (loss) on investments,
futures, swap contracts and foreign
currency transactions ............................. 82,221 2,357 5,787
-------- ---------- ----------
Change in unrealized appreciation (depreciation)
on investments .......................................... (8,900) (975,903) (254,607)
Change in unrealized appreciation (depreciation)
on futures .............................................. (6,701) -- --
Change in unrealized appreciation on swap contracts ........ -- -- --
Change in unrealized on foreign capital gains
tax on appreciated securities ........................... -- -- --
Change in unrealized appreciation (depreciation)
on foreign currency translations ........................ -- -- --
-------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on investments, futures, swap
contracts, foreign capital gains tax on appreciated
securities and foreign currency translations ...... (15,601) (975,903) (254,607)
-------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ............................................. 66,620 (973,546) (248,820)
-------- ---------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................... $643,923 $4,891,038 $3,553,858
======== ========== ==========
+ 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. 88 & 89
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
OCTOBER 31, 2006
NORTH AMERICAN
EQUITY FUND
-------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
2007 2006
-------------- --------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ....................................... $ 10,763,167 $ 22,897,980
Net realized gain (loss) on investments sold, futures and foreign
currency transactions ........................................... 92,408,333+ 82,523,753+
Change in unrealized appreciation (depreciation) on investments,
futures, foreign capital gains tax on appreciated securities and
foreign currency translations ................................... (17,558,857) 83,486,780
-------------- --------------
Net increase in net assets resulting from operations ............ 85,612,643 188,908,513
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................. (23,398,287) (12,335,404)
Advisor Shares .................................................. (2,080) --
Net realized gains:
Investor Shares ................................................. (53,303,193) (20,970,187)
Advisor Shares .................................................. (5,293) --
-------------- --------------
Total dividends and distributions ............................... (76,708,853) (33,305,591)
-------------- --------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................................... 119,270,319 107,993,074
Proceeds from shares sold in-kind .................................. -- 188,271,143
Reinvestment of distributions ...................................... 18,112,110 21,749,065
Redemption of shares ............................................... (141,826,316) (317,239,270)
Redemption of shares in-kind ....................................... (262,623,054) (197,662,858)
Redemption fees - Note 4 ........................................... -- --
-------------- --------------
Total increase (decrease) from Investor Share transactions ...... (267,066,941) (196,888,846)
-------------- --------------
ADVISOR SHARES(c):
Sales of shares .................................................... 2,500 100,000
Reinvestment of distributions ...................................... 7,373 --
Redemption of shares ............................................... -- --
Redemption fees - Note 4 ........................................... -- --
-------------- --------------
Total increase from Advisor Share transactions .................. 9,873 100,000
-------------- --------------
Net increase (decrease) in net assets from share transactions ... (267,057,068) (196,788,846)
-------------- --------------
Total increase (decrease) in net assets ......................... (258,153,278) (41,185,924)
NET ASSETS
Beginning of Period ................................................ 1,262,089,658 1,303,275,582
-------------- --------------
End of Period ...................................................... $1,003,936,380 $1,262,089,658
============== ==============
Undistributed (accumulated net investment loss/distributions in
excess of) net investment income ................................ $ 6,173,139 $ 18,810,339
============== ==============
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................................... 9,627,185 9,242,003
Shares sold in-kind ................................................ -- 16,145,433
Reinvestment of distributions ...................................... 1,506,831 1,907,813
Redemption of shares ............................................... (11,413,504) (27,323,408)
Redemption of shares in-kind ....................................... (20,531,882) (16,916,303)
-------------- --------------
Net increase (decrease) in Investor Shares ...................... (20,811,370) (16,944,462)
============== ==============
ADVISOR SHARES(c):
Sales of shares .................................................... 199 8,446
Reinvestment of distributions ...................................... 613 --
Reinvestment of shares ............................................. -- --
-------------- --------------
Net increase in Advisor Shares .................................. 812 8,446
============== ==============
INTERNATIONAL DIVERSIFIED U.S. OPPORTUNITIES
VALUE FUND FUND
------------------------- ---------------------------
SIX MONTHS PERIOD SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2007 2006(a) 2007 2006
----------- ----------- ------------ ------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ....................................... $ 139,899 $ 39,060 $ 104,934 $ (195,360)
Net realized gain (loss) on investments sold, futures and foreign
currency transactions ........................................... 733,456 56,178 11,837,233 20,946,038
Change in unrealized appreciation (depreciation) on investments,
futures, foreign capital gains tax on appreciated securities and
foreign currency translations ................................... 1,288,141 441,864 16,067,645 12,710,043
----------- ----------- ------------ ------------
Net increase in net assets resulting from operations ............ 2,161,496 537,102 28,009,812 33,460,721
----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................. (101,970) -- -- --
Advisor Shares .................................................. (10,713) -- -- --
Net realized gains:
Investor Shares ................................................. (53,820) -- (20,939,518) (5,427,542)
Advisor Shares .................................................. (6,027) (103,868)
----------- ----------- ------------ ------------
Total dividends and distributions ............................... (172,530) -- (21,043,386) (5,427,542)
----------- ----------- ------------ ------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................................... -- 9,000,000 55,999,334 100,672,739
Proceeds from shares sold in-kind .................................. -- -- -- --
Reinvestment of distributions ...................................... 155,790 -- 20,495,365 5,298,332
Redemption of shares ............................................... -- -- (21,343,430) (43,455,762)
Redemption of shares in-kind ....................................... -- -- -- --
Redemption fees - Note 4 ........................................... -- -- 4,210 21,450
----------- ----------- ------------ ------------
Total increase (decrease) from Investor Share transactions ...... 155,790 9,000,000 55,155,479 62,536,759
----------- ----------- ------------ ------------
ADVISOR SHARES(c):
Sales of shares .................................................... 52,477 1,000,000 4,968,631 639,741
Reinvestment of distributions ...................................... 16,740 -- 60,689 --
Redemption of shares ............................................... -- -- (55,386) --
Redemption fees - Note 4 ........................................... -- -- 274 --
----------- ----------- ------------ ------------
Total increase from Advisor Share transactions .................. 69,217 1,000,000 4,974,208 639,741
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from share transactions ... 225,007 10,000,000 60,129,687 63,176,500
----------- ----------- ------------ ------------
Total increase (decrease) in net assets ......................... 2,213,973 10,537,102 67,096,113 91,209,679
NET ASSETS
Beginning of Period ................................................ 10,537,102 -- 231,676,304 140,466,625
----------- ----------- ------------ ------------
End of Period ...................................................... $12,751,075 $10,537,102 $298,772,417 $231,676,304
=========== =========== ============ ============
Undistributed (accumulated net investment loss/distributions in
excess of) net investment income ................................ $ 62,690 $ 35,474 $ 104,934 $ --
=========== =========== ============ ============
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................................... -- 900,000 2,468,420 4,637,415
Shares sold in-kind ................................................ -- -- -- --
Reinvestment of distributions ...................................... 14,253 -- 928,653 263,993
Redemption of shares ............................................... -- -- (944,620) (2,030,621)
Redemption of shares in-kind ....................................... -- -- -- --
----------- ----------- ------------ ------------
Net increase (decrease) in Investor Shares ...................... 14,253 900,000 2,452,453 2,870,787
=========== =========== ============ ============
ADVISOR SHARES(c):
Sales of shares .................................................... 4,378 100,000 219,543 28,966
Reinvestment of distributions ...................................... 1,532 -- 2,754 --
Reinvestment of shares ............................................. -- -- (2,403) --
----------- ----------- ------------ ------------
Net increase in Advisor Shares .................................. 5,910 100,000 219,894 28,966
=========== =========== ============ ============
U.S. SMALL AND MID CAP
OPPORTUNITIES FUND
-------------------------
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31,
2007 2006(b)
----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ....................................... $ (16,493) $ (2,731)
Net realized gain (loss) on investments sold, futures and foreign
currency transactions ........................................... 345,088 (76,923)
Change in unrealized appreciation (depreciation) on investments,
futures, foreign capital gains tax on appreciated securities and
foreign currency translations ................................... 638,041 305,653
----------- ----------
Net increase in net assets resulting from operations ............ 966,636 225,999
----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................. (3,936) --
Advisor Shares .................................................. -- --
Net realized gains:
Investor Shares ................................................. -- --
Advisor Shares .................................................. --
----------- ----------
Total dividends and distributions ............................... (3,936) --
----------- ----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................................... 2,089,376 6,738,014
Proceeds from shares sold in-kind .................................. -- --
Reinvestment of distributions ...................................... 3,936 --
Redemption of shares ............................................... (700,051) --
Redemption of shares in-kind ....................................... -- --
Redemption fees - Note 4 ........................................... 1 --
----------- ----------
Total increase (decrease) from Investor Share transactions ...... 1,393,262 6,738,014
----------- ----------
ADVISOR SHARES(c):
Sales of shares .................................................... 847,777 500,000
Reinvestment of distributions ...................................... -- --
Redemption of shares ............................................... (12,808) --
Redemption fees - Note 4 ........................................... 194 --
----------- ----------
Total increase from Advisor Share transactions .................. 835,163 500,000
----------- ----------
Net increase (decrease) in net assets from share transactions ... 2,228,425 7,238,014
----------- ----------
Total increase (decrease) in net assets ......................... 3,191,125 7,464,013
NET ASSETS
Beginning of Period ................................................ 7,464,013 --
----------- ----------
End of Period ...................................................... $10,655,138 $7,464,013
=========== ==========
Undistributed (accumulated net investment loss/distributions in
excess of) net investment income ................................ $ (23,983) $ (3,554)
=========== ==========
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................................... 195,124 678,547
Shares sold in-kind ................................................ -- --
Reinvestment of distributions ...................................... 364 --
Redemption of shares ............................................... (62,338) --
Redemption of shares in-kind ....................................... -- --
----------- ----------
Net increase (decrease) in Investor Shares ...................... 133,150 678,547
=========== ==========
ADVISOR SHARES(c):
Sales of shares .................................................... 77,461 50,000
Reinvestment of distributions ...................................... -- --
Reinvestment of shares ............................................. (1,156) --
----------- ----------
Net increase in Advisor Shares .................................. 76,305 50,000
=========== ==========
(a) Fund commenced investment activities on August 30, 2006.
(b) Fund commenced investment activities on March 31, 2006.
(c) The North American Equity Fund's Advisor Shares commenced operations on
March 31, 2006 and the U.S. Opportunities Fund's Advisor Shares commenced
operations on May 15, 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. 90 & 91
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
OCTOBER 31, 2006
INTERNATIONAL
ALPHA FUND
-------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
2007 2006
----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ....................................... $ 96,360 $ 259,275
Net realized gain (loss) on investments sold, futures, swap
contracts and foreign currency transactions ..................... 3,072,240 1,096,732
Change in unrealized appreciation (depreciation) on investments,
futures, foreign capital gains tax on appreciated securities and
foreign currency translations ................................... 3,200,724 2,330,580
----------- -----------
Net increase in net assets resulting from operations ............ 6,369,324 3,686,587
----------- -----------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................. (283,664) (128,898)
Advisor Shares .................................................. (178,023) --
----------- -----------
Total dividends ................................................. (461,687) (128,898)
----------- -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................................... 11,028,080 14,728,546
Reinvestment of distributions ...................................... 282,490 125,253
Redemption of shares ............................................... (102,381) (1,070,040)
----------- -----------
Total increase (decrease) from Investor Share transactions ...... 11,208,189 13,783,759
----------- -----------
ADVISOR SHARES(d):
Sales of shares .................................................... 2,895,951 20,725,376
Reinvestment of distributions ...................................... 175,168 --
Redemption of shares ............................................... (7,556,460) (170,017)
Redemption fees - Note 4 ........................................... 380 993
----------- -----------
Total increase (decrease) from Advisor Share transactions ....... (4,484,961) 20,556,352
----------- -----------
Net increase (decrease) in net assets from share transactions ... 6,723,228 34,340,111
----------- -----------
Total increase in net assets .................................... 12,630,865 37,897,800
NET ASSETS
Beginning of Period ................................................ 44,442,572 6,544,772
----------- -----------
End of Period ...................................................... $57,073,437 $44,442,572
=========== ===========
Undistributed (distributions in excess of) net investment income ... $ (152,771) $ 212,556
=========== ===========
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................................... 1,021,118 1,469,451
Reinvestment of distributions ...................................... 25,940 14,397
Redemption of shares ............................................... (9,261) (110,493)
----------- -----------
Net increase (decrease) in Investor Shares ...................... 1,037,797 1,373,355
=========== ===========
ADVISOR SHARES(d):
Sales of shares .................................................... 261,912 2,036,164
Reinvestment of distributions ...................................... 16,085 --
Redemption of shares ............................................... (687,130) (16,388)
----------- -----------
Net increase (decrease) in Advisor Shares ....................... (409,133) 2,019,776
=========== ===========
EMERGING MARKET ENHANCED
EQUITY FUND INCOME FUND
------------------------- ---------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2007 2006(a) 2007 2006(b)
----------- ----------- ------------ ------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ....................................... $ (2,047) $ 55,229 $ 3,015,296 $ 5,046,911
Net realized gain (loss) on investments sold, futures, swap
contracts and foreign currency transactions ..................... 795,091 (218,985) (412,031) (203,537)
Change in unrealized appreciation (depreciation) on investments,
futures, foreign capital gains tax on appreciated securities and
foreign currency translations ................................... 1,719,753 983,782 (242,692) 70,115
----------- ----------- ------------ ------------
Net increase in net assets resulting from operations ............ 2,512,797 820,026 2,360,573 4,913,489
----------- ----------- ------------ ------------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................. (59,930) -- (3,025,634) (5,220,764)
Advisor Shares .................................................. (3,238) -- (30,562) (49,587)
----------- ----------- ------------ ------------
Total dividends ................................................. (63,168) -- (3,056,196) (5,270,351)
----------- ----------- ------------ ------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................................... -- 12,000,008 533,597 2,541,497
Reinvestment of distributions ...................................... 59,930 -- 3,025,393 5,220,492
Redemption of shares ............................................... (150,000) -- (75,831) (79,750)
----------- ----------- ------------ ------------
Total increase (decrease) from Investor Share transactions ...... (90,070) 12,000,008 3,483,159 7,682,239
----------- ----------- ------------ ------------
ADVISOR SHARES(d):
Sales of shares .................................................... 21,000 1,000,000 77,889 36,515
Reinvestment of distributions ...................................... 3,237 -- 30,560 49,587
Redemption of shares ............................................... (3,459) -- (36,111) (7,227)
Redemption fees - Note 4 ........................................... -- -- -- --
----------- ----------- ------------ ------------
Total increase (decrease) from Advisor Share transactions ....... 20,778 1,000,000 72,338 78,875
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from share transactions ... (69,292) 13,000,008 3,555,497 7,761,114
----------- ----------- ------------ ------------
Total increase in net assets .................................... 2,380,337 13,820,034 2,859,874 7,404,252
NET ASSETS
Beginning of Period ................................................ 13,820,034 -- 109,539,667 102,135,415
----------- ----------- ------------ ------------
End of Period ...................................................... $16,200,371 $13,820,034 $112,399,541 $109,539,667
=========== =========== ============ ============
Undistributed (distributions in excess of) net investment income ... $ (13,325) $ 51,980 $ (66,704) $ (25,804)
=========== =========== ============ ============
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................................... -- 1,210,713 54,073 189,266
Reinvestment of distributions ...................................... 5,239 -- 306,011 592,037
Redemption of shares ............................................... (12,788) -- (7,674) (8,020)
----------- ----------- ------------ ------------
Net increase (decrease) in Investor Shares ...................... (7,549) 1,210,713 352,410 773,283
=========== =========== ============ ============
ADVISOR SHARES(d):
Sales of shares .................................................... 1,780 100,000 7,855 3,045
Reinvestment of distributions ...................................... 283 -- 3,090 5,626
Redemption of shares ............................................... (317) -- (3,651) (727)
----------- ----------- ------------ ------------
Net increase (decrease) in Advisor Shares ....................... 1,746 100,000 7,294 7,944
=========== =========== ============ ============
STRATEGIC
BOND FUND
-------------------------
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31,
2007 2006(c)
----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ....................................... $ 636,905 $ 239,601
Net realized gain (loss) on investments sold, futures, swap
contracts and foreign currency transactions ..................... 58,798 (144,464)
Change in unrealized appreciation (depreciation) on investments,
futures, foreign capital gains tax on appreciated securities and
foreign currency translations ................................... 209,891 152,973
----------- -----------
Net increase in net assets resulting from operations ............ 905,594 248,110
----------- -----------
DIVIDENDS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................. (537,469) (146,680)
Advisor Shares .................................................. (48,768) (7,110)
----------- -----------
Total dividends ................................................. (586,237) (153,790)
----------- -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .................................................... 9,348,074 19,000,000
Reinvestment of distributions ...................................... 393,112 146,680
Redemption of shares ............................................... -- --
----------- -----------
Total increase (decrease) from Investor Share transactions ...... 9,741,186 19,146,680
----------- -----------
ADVISOR SHARES(d):
Sales of shares .................................................... 3,084,766 1,000,000
Reinvestment of distributions ...................................... 48,768 7,110
Redemption of shares ............................................... (6,674) --
Redemption fees - Note 4 ........................................... 126 --
----------- -----------
Total increase (decrease) from Advisor Share transactions ....... 3,126,986 1,007,110
----------- -----------
Net increase (decrease) in net assets from share transactions ... 12,868,172 20,153,790
----------- -----------
Total increase in net assets .................................... 13,187,529 20,248,110
NET ASSETS
Beginning of Period ................................................ 20,248,110 --
----------- -----------
End of Period ...................................................... $33,435,639 $20,248,110
=========== ===========
Undistributed (distributions in excess of) net investment income ... $ 104,160 $ 53,492
=========== ===========
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .................................................... 924,926 1,900,000
Reinvestment of distributions ...................................... 39,027 14,727
Redemption of shares ............................................... -- --
----------- -----------
Net increase (decrease) in Investor Shares ...................... 963,953 1,914,727
=========== ===========
ADVISOR SHARES(d):
Sales of shares .................................................... 304,566 100,000
Reinvestment of distributions ...................................... 4,845 714
Redemption of shares ............................................... (656) --
----------- -----------
Net increase (decrease) in Advisor Shares ....................... 308,755 100,714
=========== ===========
(a) Fund commenced investment activities on March 31, 2006.
(b) Fund commenced investment activities on December 31, 2004.
(c) Fund commenced investment activities on June 30, 2006.
(d) The International Alpha Fund's Advisor Shares commenced operations on May
15, 2006.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 92 & 93
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED) AND THE YEAR ENDED OCTOBER 31,
2006
TOTAL RETURN FIXED
INCOME FUND
------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
2007 2006
----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ........................................................ $ 577,303 $ 967,415
Net realized gain (loss) on investments sold and futures ..................... 82,221 (168,940)
Change in unrealized appreciation (depreciation) on investments and futures .. (15,601) 226,600
----------- -----------
Net increase in net assets resulting from operations ...................... 643,923 1,025,075
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ........................................................... (553,062) (952,739)
Advisor Shares ............................................................ (25,342) (47,476)
Net realized gains:
Investor Shares ........................................................... -- (30,182)
Advisor Shares ............................................................ -- (1,713)
----------- -----------
Total dividends and distributions ......................................... (578,404) (1,032,110)
----------- -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .............................................................. 2,455,461 3,969,060
Proceeds from shares sold in-kind ............................................ -- 8,819,298
Reinvestment of distributions ................................................ 553,062 982,921
Redemption of shares ......................................................... (600,000) (1,109,764)
----------- -----------
Total increase from Investor Share transactions ........................... 2,408,523 12,661,515
----------- -----------
ADVISOR SHARES:
Sales of shares .............................................................. -- 21,000
Reinvestment of distributions ................................................ 25,343 49,189
Redemption of shares ......................................................... -- (20,894)
----------- -----------
Total increase from Advisor Share transactions ............................ 25,343 49,295
----------- -----------
Net increase in net assets from share transactions ........................ 2,433,866 12,710,810
----------- -----------
Total increase in net assets .............................................. 2,499,385 12,703,775
NET ASSETS
Beginning of Period .......................................................... 22,854,562 10,150,787
----------- -----------
End of Period ................................................................ $25,353,947 $22,854,562
=========== ===========
Undistributed (distributions in excess of) net investment income ............. $ (31,804) $ (30,703)
=========== ===========
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares .............................................................. 249,509 409,708
Shares sold in-kind .......................................................... -- 897,182
Reinvestment of distributions ................................................ 56,278 100,810
Redemption of shares ......................................................... (61,100) (114,019)
----------- -----------
Net increase in Investor Shares ........................................... 244,687 1,293,681
=========== ===========
ADVISOR SHARES:
Sales of shares .............................................................. -- 2,115
Reinvestment of distributions ................................................ 2,576 5,036
Redemption of shares ......................................................... -- (2,132)
----------- -----------
Net increase in Advisor Shares ............................................ 2,576 5,019
=========== ===========
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,
2007 2006 2007 2006
------------ ------------ ------------ ------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ................................................ $ 5,864,584 $ 6,995,547 $ 3,802,678 $ 5,690,766
Net realized gain (loss) on investments sold and futures ............. 2,357 185,006 5,787 (143,998)
Change in unrealized appreciation (depreciation) on investments and
futures ........................................................... (975,903) 2,852,828 (254,607) 925,630
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations .............. 4,891,038 10,033,381 3,553,858 6,472,398
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ................................................... (5,377,926) (6,335,605) (3,607,463) (5,513,943)
Advisor Shares .................................................... (285,769) (459,672) (98,209) (119,076)
Net realized gains:
Investor Shares ................................................... -- -- -- --
Advisor Shares .................................................... -- -- -- --
------------ ------------ ------------ ------------
Total dividends and distributions ................................. (5,663,695) (6,795,277) (3,705,672) (5,633,019)
------------ ------------ ------------ ------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ...................................................... 86,254,815 165,291,635 37,736,963 104,290,661
Proceeds from shares sold in-kind .................................... -- -- -- --
Reinvestment of distributions ........................................ 5,051,638 6,028,471 2,754,409 4,722,331
Redemption of shares ................................................. (21,003,426) (25,578,689) (28,039,694) (53,629,074)
------------ ------------ ------------ ------------
Total increase from Investor Share transactions ................... 70,303,027 145,741,417 12,451,678 55,383,918
------------ ------------ ------------ ------------
ADVISOR SHARES:
Sales of shares ...................................................... 3,699,822 8,232,470 3,411,972 1,610,814
Reinvestment of distributions ........................................ 279,929 438,872 84,604 93,382
Redemption of shares ................................................. (2,351,985) (2,424,197) (1,168,610) (1,098,912)
------------ ------------ ------------ ------------
Total increase from Advisor Share transactions .................... 1,627,766 6,247,145 2,327,966 605,284
------------ ------------ ------------ ------------
Net increase in net assets from share transactions ................ 71,930,793 151,988,562 14,779,644 55,989,202
------------ ------------ ------------ ------------
Total increase in net assets ...................................... 71,158,136 155,226,666 14,627,830 56,828,581
NET ASSETS
Beginning of Period .................................................. 259,716,052 104,489,386 191,002,570 134,173,989
------------ ------------ ------------ ------------
End of Period ........................................................ $330,874,188 $259,716,052 $205,630,400 $191,002,570
============ ============ ============ ============
Undistributed (distributions in excess of) net investment income ..... $ 454,876 $ 253,987 $ 187,445 $ 90,439
============ ============ ============ ============
CHANGES IN FUND SHARES
INVESTOR SHARES:
Sales of shares ...................................................... 8,554,437 16,564,601 3,790,915 10,518,310
Shares sold in-kind .................................................. -- -- -- --
Reinvestment of distributions ........................................ 500,908 602,199 276,742 475,975
Redemption of shares ................................................. (2,083,170) (2,560,647) (2,816,494) (5,408,658)
------------ ------------ ------------ ------------
Net increase in Investor Shares ................................... 6,972,175 14,606,153 1,251,163 5,585,627
============ ============ ============ ============
ADVISOR SHARES:
Sales of shares ...................................................... 366,973 823,851 342,734 162,507
Reinvestment of distributions ........................................ 27,765 43,868 8,501 9,414
Redemption of shares ................................................. (233,264) (242,641) (117,494) (110,832)
------------ ------------ ------------ ------------
Net increase in Advisor Shares .................................... 161,474 625,078 233,741 61,089
============ ============ ============ ============
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 94 & 95
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET DIVIDENDS
VALUE, NET NET REALIZED AND TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT UNREALIZED GAINS INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD INCOME (LOSS) (LOSSES) OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ------------- ---------------- ---------- ---------- -------------- -------------
NORTH AMERICAN EQUITY FUND
Investor Shares
2007* ......... $12.63 $ 0.16 $ 0.81 $ 0.97 $(0.28) $(0.63) $(0.91)
2006 .......... 11.15 0.23 1.53 1.76 (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
2007* ......... $12.61 $ 0.09 $ 0.86 $ 0.95 $(0.25) $(0.63) $(0.88)
2006(e) ....... 11.84 0.22 0.55 0.77 -- -- --
INTERNATIONAL DIVERSIFIED VALUE FUND
Investor Shares
2007* ......... $10.54 $ 0.14 $ 1.99 $ 2.13 $(0.11) $(0.06) $(0.17)
2006(f) ....... 10.00 0.04 0.50 0.54 -- -- --
Advisor Shares
2007* ......... $10.53 $ 0.13 $ 2.00 $ 2.13 $(0.11) $(0.06) $(0.17)
2006(f) ....... 10.00 0.04 0.49 0.53 -- -- --
U.S. OPPORTUNITIES FUND
Investor Shares
2007* ......... $23.06 $ 0.01(1) $ 2.40+(1) $ 2.41 $ -- $(1.98) $(1.98)
2006 .......... 19.66 --(h) 4.15+ 4.15 -- (0.75) (0.75)
2005 .......... 19.58 --(h) 2.11+ 2.11 -- (2.03) (2.03)
2004 .......... 16.18 --(h) 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)
Advisor Shares
2007* ......... $23.04 $(0.02)(1) $ 2.40+(1) $ 2.38 $ -- $(1.98) $(1.98)
2006(g) ....... 22.21 --(h) 0.83 0.83 -- -- --
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2007* ......... $10.25 $(0.01) $ 1.13+ $ 1.12 $(0.01) $ -- $(0.01)
2006(e) ....... 10.00 --(h) 0.25 0.25 -- -- --
Advisor Shares
2007* ......... $10.23 $(0.02) $ 1.14+ $ 1.12 $ -- $ -- $ --
2006(e) ....... 10.00 --(h) 0.23 0.23 -- -- --
RATIO OF
EXPENSES TO
AVERAGE NET ASSETS
NET ASSET NET ASSETS, (INCLUDING WAIVERS AND
VALUE, END TOTAL END OF REIMBURSEMENTS,
OF PERIOD RETURN(a) PERIOD (000) EXCLUDING OFFSETS)
---------- --------- ------------ ----------------------
NORTH AMERICAN EQUITY FUND
Investor Shares
2007* ....... $12.69 8.01% $1,003,819 0.32%
2006 ........ 12.63 16.04 1,261,983 0.33
2005(b) ..... 11.15 6.35 1,303,276 0.35
2005(c) ..... 11.00 7.59 883,146 0.33
2004(c)(d) .. 10.88 9.56 890,929 0.37
Advisor Shares
2007* ....... $12.68 7.85% $ 117 0.68%
2006(e) ..... 12.61 6.50 107 0.68
INTERNATIONAL DIVERSIFIED VALUE FUND
Investor Shares
2007* ....... $12.50 20.47% $ 11,429 1.25%
2006(f) ..... 10.54 5.40 9,484 1.25
Advisor Shares
2007* ....... $12.49 20.42% $ 1,323 1.50%
2006(f) ..... 10.53 5.30 1,053 1.50
U.S. OPPORTUNITIES FUND
Investor Shares
2007* ....... $23.49 11.00% $ 292,939 1.25%
2006 ........ 23.06 21.67 231,009 1.21
2005 ........ 19.66 11.26 140,467 1.13
2004 ........ 19.58 21.01 73,679 1.62
2003 ........ 16.18 32.13 46,783 1.93
2002 ........ 12.57 (9.91) 41,857 1.49
Advisor Shares
2007* ....... $23.44 10.87% $ 5,833 1.50%
2006(g) ..... 23.04 3.74 667 1.68
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2007* ....... $11.36 10.89% $ 9,222 1.40%
2006(e) ..... 10.25 2.50 6,952 1.55**
Advisor Shares
2007* ....... $11.35 10.95% $ 1,433 1.65%
2006(e) ..... 10.23 2.30 512 1.79**
RATIO OF
RATIO OF NET INVESTMENT
EXPENSES TO INCOME (LOSS) TO
AVERAGE NET ASSETS AVERAGE NET ASSETS
(EXCLUDING WAIVERS, (INCLUDING WAIVERS, PORTFOLIO
REIMBURSEMENTS REIMBURSEMENTS TURNOVER
AND OFFSETS) AND OFFSETS) RATE
------------------- ------------------- ---------
NORTH AMERICAN EQUITY FUND
Investor Shares
2007* .............. 0.32% 1.98% 13%
2006 ............... 0.33 1.66 51
2005(b) ............ 0.35 1.39 30
2005(c) ............ 0.33 1.79 89
2004(c)(d) ......... 0.37 1.29 54
Advisor Shares
2007* .............. 0.68% 1.62% 13%
2006(e) ............ 0.68 1.17 51
INTERNATIONAL DIVERSIFIED VALUE FUND
Investor Shares
2007* .............. 3.63% 2.47% 29%
2006(f) ............ 8.61 2.30 7
Advisor Shares
2007* .............. 3.88% 2.24% 29%
2006(f) ............ 8.86 2.05 7
U.S. OPPORTUNITIES FUND
Investor Shares
2007* .............. 1.25% 0.08% 34%
2006 ............... 1.21 (0.11) 101
2005 ............... 1.13 (0.29) 107
2004 ............... 1.62 (0.83) 144
2003 ............... 2.25 (1.22) 162
2002 ............... 1.50 (0.75) 81
Advisor Shares
2007* .............. 1.50% (0.22)% 34%
2006(g) ............ 1.68 (0.31) 101
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2007* .............. 3.18% (0.46)% 50%
2006(e) ............ 6.14 (0.05) 46
Advisor Shares
2007* .............. 3.41% (0.66)% 50%
2006(e) ............ 6.89 (0.33) 46
* For the six months ended April 30, 2007 (unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.
** Had custody offsets been included the ratios would have been 1.40% and
1.64% for the Investor Shares and Advisor Shares, respectively.
+ Includes redemption fees. Amount was less than $0.01 per share.
(1) Per share net investment loss and net realized and unrealized gains
calculated using average shares.
(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 Total Return and 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 Total Return and the Portfolio Turnover
Rate.
(e) Commenced operations on March 31, 2006. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(f) Commenced operations on August 30, 2006. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(g) Commenced operations on May 15, 2006. All ratios for the period have been
annualized, except for the Total Return and the Portfolio Turnover Rate.
(h) Amount was less than $0.01 per share.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 96 & 97
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET DIVIDENDS
VALUE, NET NET REALIZED AND TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT UNREALIZED GAINS INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD INCOME (LOSS) (LOSSES) OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ------------- ---------------- ---------- ---------- -------------- -------------
INTERNATIONAL ALPHA FUND
Investor Shares
2007* .............. $10.64 $ 0.01 $ 1.32 $ 1.33 $(0.09) $ -- $(0.09)
2006 ............... 8.35 0.12 2.34 2.46 (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)
Advisor Shares
2007* .............. $10.64 $ --(f) $ 1.31+ $ 1.31 $(0.08) $ -- $(0.08)
2006(b) ............ 10.23 --(f) 0.41+ 0.41 -- -- --
EMERGING MARKET EQUITY FUND
Investor Shares
2007* .............. $10.55 $ --(f) $ 1.92 $ 1.92 $(0.05) $ -- $(0.05)
2006(c) ............ 10.00 0.04 0.51 0.55 -- -- --
Advisor Shares
2007* .............. $10.53 $(0.02) $ 1.92 $ 1.90 $(0.03) $ -- $(0.03)
2006(c) ............ 10.00 0.04 0.49 0.53 -- -- --
ENHANCED INCOME FUND
Investor Shares
2007* .............. $ 9.92 $ 0.27 $(0.06) $ 0.21 $(0.27) $ -- $(0.27)
2006 ............... 9.96 0.49 (0.03) 0.46 (0.50) -- (0.50)
2005(d) ............ 10.00 0.26 (0.04) 0.22 (0.26) -- (0.26)
Advisor Shares
2007* .............. $ 9.92 $ 0.26 $(0.06) $ 0.20 $(0.26) $ -- $(0.26)
2006 ............... 9.96 0.47 (0.04) 0.43 (0.47) -- (0.47)
2005(d) ............ 10.00 0.23 (0.04) 0.19 (0.23) -- (0.23)
STRATEGIC BOND FUND
Investor Shares
2007* .............. $10.05 $ 0.20 $ 0.11 $ 0.31 $(0.19) $ -- $(0.19)
2006(e) ............ 10.00 0.10 0.03 0.13 (0.08) -- (0.08)
Advisor Shares
2007* .............. $10.04 $ 0.19 $ 0.12+ $ 0.31 $(0.18) $ -- $(0.18)
2006(e) ............ 10.00 0.10 0.01 0.11 (0.07) -- (0.07)
RATIO OF
EXPENSES TO
AVERAGE NET ASSETS
NET ASSET NET ASSETS, (INCLUDING WAIVERS AND
VALUE, END TOTAL END OF REIMBURSEMENTS,
OF PERIOD RETURN(a) PERIOD (000) EXCLUDING OFFSETS)
---------- --------- ------------ ----------------------
INTERNATIONAL ALPHA FUND
Investor Shares
2007* ............... $11.88 12.60% $ 37,963 1.25%
2006 ................ 10.64 29.86 22,962 1.25
2005 ................ 8.35 19.45 6,545 1.25
2004 ................ 7.08 13.31 5,233 1.25
2003 ................ 6.37 22.66 6,242 1.25
2002 ................ 5.37 (17.20) 6,427 1.14
Advisor Shares
2007* ............... $11.87 12.43% $ 19,111 1.50%
2006(b) ............. 10.64 4.01 21,481 1.50
EMERGING MARKET EQUITY FUND
Investor Shares
2007* ............... $12.42 18.23% $ 14,939 1.75%
2006(c) ............. 10.55 5.50 12,767 1.87**
Advisor Shares
2007* ............... $12.40 18.09% $ 1,262 2.00%
2006(c) ............. 10.53 5.30 1,053 2.12**
ENHANCED INCOME FUND
Investor Shares
2007* ............... $ 9.86 2.18% $111,230 0.40%
2006 ................ 9.92 4.68 108,435 0.40
2005(d) ............. 9.96 2.17 101,106 0.40
Advisor Shares
2007* ............... $ 9.86 2.05% $ 1,169 0.65%
2006 ................ 9.92 4.40 1,105 0.65
2005(d) ............. 9.96 1.96 1,029 0.65
STRATEGIC BOND FUND
Investor Shares
2007* ............... $10.17 3.16% $ 29,272 1.15%
2006(e) ............. 10.05 1.28 19,236 1.23***
Advisor Shares
2007* ............... $10.17 3.14% $ 4,164 1.40%
2006(e) ............. 10.04 1.12 1,012 1.48***
RATIO OF
RATIO OF NET INVESTMENT
EXPENSES TO INCOME (LOSS) TO
AVERAGE NET ASSETS AVERAGE NET ASSETS
(EXCLUDING WAIVERS, (INCLUDING WAIVERS, PORTFOLIO
REIMBURSEMENTS REIMBURSEMENTS TURNOVER
AND OFFSETS) AND OFFSETS) RATE
------------------- ------------------- ---------
INTERNATIONAL ALPHA FUND
Investor Shares
2007* ................. 1.55% 0.46% 53%
2006 .................. 2.45 1.68 76
2005 .................. 3.88 1.85 126
2004 .................. 3.36 1.16 136
2003 .................. 3.27 2.09 50
2002 .................. 1.94 0.60 111
Advisor Shares
2007* ................. 1.80% 0.16% 53%
2006(b) ............... 2.43 (0.03) 76
EMERGING MARKET EQUITY FUND
Investor Shares
2007* ................. 3.11% (0.01)% 47%
2006(c) ............... 4.88 0.88 49
Advisor Shares
2007* ................. 3.35% (0.25)% 47%
2006(c) ............... 5.10 0.71 49
ENHANCED INCOME FUND
Investor Shares
2007* ................. 0.63% 5.50% 7%
2006 .................. 0.72 4.78 78
2005(d) ............... 0.82 3.08 61
Advisor Shares
2007* ................. 0.88% 5.25% 7%
2006 .................. 0.97 4.53 78
2005(d) ............... 1.07 2.69 61
STRATEGIC BOND FUND
Investor Shares
2007* ................. 2.16% 4.27% 311%
2006(e) ............... 4.67 3.56 321
Advisor Shares
2007* ................. 2.49% 4.04% 311%
2006(e) ............... 4.92 3.31 321
* For the six months ended April 30, 2007 (unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.
** Had custody offsets been included the ratios would have been 1.75% and
2.00% for the Investor Shares and Advisor Shares, respectively.
*** Had custody offsets been included the ratios would have been 1.15% and
1.40% for the Investor Shares and Advisor Shares, respectively.
+ Includes redemption fees. Amount was 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) Commenced operations on May 15, 2006. All ratios for the period have been
annualized, except for the Total Return and the Portfolio Turnover Rate.
(c) Commenced operations on March 31, 2006. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(d) Commenced operations on December 31, 2004. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(e) Commenced operations on June 30, 2006. All ratios for the period have been
annualized, except for the Total Return and the Portfolio Turnover Rate.
(f) Amount was less than $0.01 per share.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. 98 & 99
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2007 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET DIVIDENDS
VALUE, NET NET REALIZED AND TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT UNREALIZED GAINS INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD INCOME (LOSSES) OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ---------- ---------------- ---------- ---------- ------------- -------------
TOTAL RETURN FIXED INCOME FUND
Investor Shares
2007* ..................... $ 9.81 $0.25 $ 0.02 $0.27 $(0.24) $ -- $(0.24)
2006 ...................... 9.85 0.48 (0.01) 0.47 (0.49) (0.02) (0.51)
2005(b) ................... 10.00 0.30 (0.15) 0.15 (0.30) -- (0.30)
Advisor Shares
2007* ..................... $ 9.82 $0.23 $ 0.03 $0.26 $(0.23) $ -- $(0.23)
2006 ...................... 9.85 0.44 -- 0.44 (0.45) (0.02) (0.47)
2005(b) ................... 10.00 0.28 (0.15) 0.13 (0.28) -- (0.28)
MUNICIPAL BOND FUND
Investor Shares
2007* ..................... $10.10 $0.20 $(0.03) $0.17 $(0.20) $ -- $(0.20)
2006 ...................... 9.97 0.40 0.12 0.52 (0.39) -- (0.39)
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
2007* ..................... $10.10 $0.19 $(0.03) $0.16 $(0.19) $ -- $(0.19)
2006 ...................... 9.97 0.37 0.13 0.50 (0.37) -- (0.37)
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
2007* ..................... $ 9.96 $0.19 $(0.01) $0.18 $(0.19) $ -- $(0.19)
2006 ...................... 9.92 0.35 0.04 0.39 (0.35) -- (0.35)
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
2007* ..................... $ 9.96 $0.18 $(0.02) $0.16 $(0.17) $ -- $(0.17)
2006 ...................... 9.92 0.32 0.04 0.36 (0.32) -- (0.32)
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
EXPENSES TO
AVERAGE NET ASSETS
NET ASSET NET ASSETS, (INCLUDING WAIVERS AND
VALUE, END TOTAL END OF REIMBURSEMENTS,
OF PERIOD RETURN(a) PERIOD (000) EXCLUDING OFFSETS)
---------- --------- ------------ ----------------------
TOTAL RETURN FIXED INCOME FUND
Investor Shares
2007* ................... $ 9.84 2.83% $ 24,266 0.40%
2006 .................... 9.81 4.90 21,795 0.40
2005(b) ................. 9.85 1.51 9,138 0.40
Advisor Shares
2007* ................... $ 9.85 2.70% $ 1,088 0.65%
2006 .................... 9.82 4.56 1,060 0.65
2005(b) ................. 9.85 1.30 1,013 0.65
MUNICIPAL BOND FUND
Investor Shares
2007* ................... $10.07 1.70% $314,492 0.55%
2006 .................... 10.10 5.36 244,919 0.55
2005 .................... 9.97 2.14 96,114 0.55
2004(c) ................. 10.12 3.53 45,781 0.56**
Advisor Shares
2007* ................... $10.07 1.58% $ 16,382 0.80%
2006 .................... 10.10 5.10 14,797 0.80
2005 .................... 9.97 1.99 8,375 0.80
2004(c) ................. 10.11 3.21 1,888 0.81**
SHORT-TERM MUNICIPAL BOND FUND
Investor Shares
2007* ................... $ 9.95 1.77% $199,573 0.55%
2006 .................... 9.96 3.97 187,268 0.55
2005 .................... 9.92 2.47 131,062 0.55
2004(c) ................. 9.97 1.26 74,031 0.56**
Advisor Shares
2007* ................... $ 9.95 1.65% $ 6,058 0.80%
2006 .................... 9.96 3.71 3,735 0.80
2005 .................... 9.92 2.21 3,112 0.80
2004(c) ................. 9.97 1.05 1,320 0.81**
RATIO OF
RATIO OF NET INVESTMENT
EXPENSES TO INCOME TO
AVERAGE NET ASSETS AVERAGE NET ASSETS
(EXCLUDING WAIVERS, (INCLUDING WAIVERS, PORTFOLIO
REIMBURSEMENTS REIMBURSEMENTS TURNOVER
AND OFFSETS) AND OFFSETS) RATE
------------------ ------------------- ----------
TOTAL RETURN FIXED INCOME FUND
Investor Shares
2007* ................... 1.39% 5.01% 235%
2006 .................... 2.05 4.86 295
2005(b) ................. 3.05 3.61 571
Advisor Shares
2007* ................... 1.64% 4.76% 235%
2006 .................... 2.37 4.59 295
2005(b) ................. 3.30 3.35 571
MUNICIPAL BOND FUND
Investor Shares
2007* ................... 0.66% 4.14% 5%
2006 .................... 0.77 4.06 15
2005 .................... 0.93 3.70 27
2004(c) ................. 1.41 2.82 46
Advisor Shares
2007* ................... 0.91% 3.89% 5%
2006 .................... 1.01 3.79 15
2005 .................... 1.18 3.52 27
2004(c) ................. 1.64 2.49 46
SHORT-TERM MUNICIPAL BOND FUND
Investor Shares
2007* ................... 0.68% 3.85% 14%
2006 .................... 0.77 3.55 24
2005 .................... 0.85 3.03 36
2004(c) ................. 1.30 1.95 17
Advisor Shares
2007* ................... 0.93% 3.60% 14%
2006 .................... 1.01 3.29 24
2005 .................... 1.10 2.80 36
2004(c) ................. 1.44 1.68 17
* For the six months ended April 30, 2007 (unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.
** Had custody offsets been included the ratios would have been 0.55% and
0.80% for the Investor Shares and Advisor Shares, respectively.
(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 Total Return and the Portfolio Turnover
Rate.
(c) Commenced operations on December 31, 2003. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
100 & 101
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2007 (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. SGST has an unlimited number of
authorized shares. Schroder North American Equity Fund (the "SGST Fund") is the
only series of shares currently comprising the Trust. Advisor Shares of the SGST
Fund were offered beginning on March 31, 2006.
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 (collectively, the "SCFD Funds"). Advisor Shares of
Schroder U.S. Opportunities and Schroder International Alpha Funds were offered
beginning on May 15, 2006. A third portfolio of SCFD, Schroder U.S. Large Cap
Equity Fund, was liquidated following its close of business on April 27, 2006.
On April 18, 2007, the Schroder U.S. Opportunities Fund closed to new investors.
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 eight separate investment portfolios: Schroder
International Diversified Value Fund, Schroder U.S. Small and Mid Cap
Opportunities Fund, Schroder Emerging Market Equity Fund, Schroder Enhanced
Income Fund, Schroder Strategic Bond Fund, Schroder Total Return Fixed Income
Fund, Schroder Municipal Bond Fund and Schroder Short-Term Municipal Bond Fund
(collectively, the "SST Funds," and together with the SCFD Funds and the SGST
Funds, the "Funds"). Schroder U.S. Small and Mid Cap Opportunities Fund and
Schroder Emerging Market Equity Fund commenced operations on March 31, 2006.
Schroder International Diversified Value Fund and Schroder Strategic Bond Fund
commenced operations as of August 30, 2006 and June 30, 2006, respectively.
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. Credit default
and interest rate swaps are valued at the estimate of the mid-market price,
together with other supporting information. Options on indices or
exchange-traded fund (ETF) shares are valued at the closing mid-market price.
Prices used for valuations generally are provided by independent pricing
services. 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 national
exchange; the security's
- --------------------------------------------------------------------------------
102
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
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 Diversified Value, 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 the Schroder
International Diversified Value, 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 Diversified Value, 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 are due when
realized.
INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date. Dividend
income is recorded net of unrecover-able 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. Many 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 pro-rated 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.
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 International Diversified Value, Schroder U.S.
Opportunities, Schroder U.S. Small and Mid Cap Opportunities, Schroder
- --------------------------------------------------------------------------------
103
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
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. Dividends and distributions to shareholders
from net investment income are declared and distributed quarterly and
distributions to shareholders from net realized capital gains, if any, are
declared and distributed at least annually for the Schroder Strategic Bond Fund.
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 enter into 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, to
adjust the interest rate sensitivity and duration of a Fund's portfolio 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 to 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.
SWAP AGREEMENTS: Certain Funds may enter into swap agreements, including total
return swaps, credit default swaps and interest rate swaps. A swap agreement is
a two-party contract under which an agreement is made to exchange returns from
predetermined investments, instruments or indices including a particular
interest rate, foreign currency, or "basket" of securities representing a
particular index. The Schroder Enhanced Income, Schroder Strategic Bond and
Schroder Total Return Fixed Income Funds may enter into "credit default" swap
transactions. In a credit default swap, one party pays what is, in effect, an
insurance premium through a
- --------------------------------------------------------------------------------
104
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
stream of payments to another party in exchange for the right to receive a
specified return in the event of a default (or similar events) by a third party
on its obligations. Therefore, in a credit default swap, the Funds may pay a
premium and, in return, have the right to put certain bonds or loans to the
counterparty upon default by the issuer of such bonds or loans (or similar
events) and to receive in return the par value of such bonds or loans (or
another agreed upon amount). The Funds would generally enter into this type of
transaction to limit or reduce risk with respect to bonds or loans that it owns
in its portfolio or otherwise in connection with transactions intended to reduce
one or more risks in the Funds' portfolio. In addition, the Funds could also
receive the premium referenced above, and be obligated to pay a counterparty the
par value of certain bonds or loans upon a default (or similar event) by the
issuer. The Funds would generally enter into this type of transaction as a
substitute for investment in the securities of the issuer, or otherwise to
increase the Funds' investment return. The Funds may also enter into "interest
rate" swap transactions. Interest rate swaps involve the exchange by the Funds
with another party of their respective commitments to pay or receive interest
(e.g., an exchange of floating rate payments for fixed rate payments) with
respect to a notional amount of principal. The Funds could be exposed to credit
or market risk due to unfavorable changes in the fluctuation of interest rates
or if the counterparty defaults on its obligation to perform. Risk of loss may
exceed amounts recognized on the Funds' Statement of Assets and Liabilities.
Depending on their structures, swap agreements may increase or decrease the
Funds' exposure to long-or short-term interest rates (in the United States or
abroad), foreign currency values, mortgage securities, corporate borrowing
rates, or other factors such as security prices or inflation rates. The values
of the Funds' swap positions would increase or decrease depending on the changes
in value of the underlying rates, currency values, or other indices or measures.
The Funds' ability to engage in certain swap transactions may be limited by tax
considerations.
Swaps are marked-to-market daily and the resulting changes in market values, if
any, are recorded as an unrealized gain or loss.
Entering into swap agreements involves certain other risks. Such risks include
for example, the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreement may default on its obligation
to perform and that there may be unfavorable changes in the fluctuation of
interest rates. Risks also arise from potential losses from adverse market
movements.
EQUITY-LINKED AND INDEX-LINKED WARRANTS: The Schroder North American Equity,
Schroder International Diversified Value, Schroder U.S. Small and Mid Cap
Opportunities, 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 generally 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 counter-party 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, 2007, 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, 2007, were as follows:
PRINCIPAL ACQUISITION % OF NET
AMOUNT DATE COST MARKET VALUE ASSETS
- ----------------------------------------------------------------------------------------------------------------------
ENHANCED INCOME FUND
Countrywide Asset-Backed Certificates
4.500%, 8/25/36 $ 12,092 4/27/05 $ 12,003 $11,352 0.0%
Countrywide Asset-Backed Certificates
5.500%, 10/25/36 112,351 10/28/05 111,529 74,151 0.1
Countrywide Asset-Backed Certificates
6.000%, 12/29/36 89,212 12/16/05 87,879 86,285 0.1
- --------------------------------------------------------------------------------
105
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
PRINCIPAL ACQUISITION % OF NET
AMOUNT DATE COST MARKET VALUE ASSETS
- ----------------------------------------------------------------------------------------------------------------------
ENHANCED INCOME FUND -- CONTINUED
Fremont NIM Trust
5.500%, 4/25/35 $ 54,733 5/17/05 $ 54,533 $ 32,840 0.0%
GSAMP Trust
5.000%, 10/25/34 13,192 12/9/05 13,031 12,796 0.0
Lehman Brothers Small Balance Commercial IO
0.850%, 2/25/30 24,186,094 4/8/05 585,528 396,803 0.4
Master Alternative NIM
7.500%, 12/25/35 88,726 2/23/06 88,174 87,927 0.1
Sharps SP I LLC NIM Trust
7.380%, 9/25/35 184,349 2/16/06 184,204 156,697 0.1
Sharps SP I LLC NIM Trust
7.250%, 10/25/35 43,184 1/10/06 43,149 30,229 0.0
Sharps SP I LLC NIM Trust
6.400%, 6/25/36 182,660 10/13/06 181,691 91,330 0.1
STRATEGIC BOND FUND
GSAA Home Equity Trust
5.750%, 7/26/36 38,440 8/22/06 38,392 37,672 0.1
Master Asset-Backed Securities NIM Trust
7.250%, 8/25/36 59,188 11/23/06 59,150 47,350 0.1
Sharps SP I LLC NIM Trust
6.400%, 6/25/36 53,030 10/15/06 52,749 26,515 0.1
TOTAL RETURN FIXED INCOME FUND
Fremont NIM Trust
5.500%, 4/25/35 5,366 5/17/05 5,346 3,220 0.0
Hedged Mutual Fund Fee Trust
5.220%, 11/30/10 100,495 1/7/05 100,761 100,118 0.4
Hedged Mutual Fund Fee Trust
4.840%, 3/02/11 155,214 1/7/05 154,784 152,595 0.6
MUNICIPAL BOND FUND
Crenshaw County,
Industrial Development Board RB
5.600%, 3/01/08 250,000 2/26/04 254,262 251,535 0.1
Denver City & County Multi-Family Housing RB
3.930%, 4/15/14 700,000 4/17/06 700,000 700,000 0.2
Jacksonville, Health Facilities RB
5.000%, 11/15/15 125,000 8/25/05 129,462 125,124 0.0
Kidspeace National Centers of Georgia, USDA
6.300%, 12/01/28 250,000 1/05/04 250,000 254,320 0.1
SHORT-TERM MUNICIPAL BOND FUND
Atlantic City, Municipal Utilities Authority RB
5.000%, 1/01/08 3,895,000 6/09/05 3,937,383 3,910,541 1.9
Denver City & County Multi-Family Housing RB
3.930%, 4/15/14 3,000,000 10/19/05 3,000,000 3,000,000 1.5
Hapeville, Development Authority RB
6.500%, 8/01/09 490,000 7/12/06 490,000 496,164 0.2
Kidspeace National Centers of Georgia, USDA
6.300%, 12/01/28 250,000 1/05/04 250,000 254,320 0.1
- --------------------------------------------------------------------------------
106
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
MORTGAGE DOLLAR ROLLS: The Schroder Enhanced Income, Schroder Strategic Bond and
the Schroder Total Return Fixed Income Funds may enter into mortgage dollar
rolls (principally using TBAs) in which each Fund sells mortgage securities for
delivery in the current month and simultaneously contracts to repurchase
substantially similar securities in a subsequent month at an agreed-upon price
on a fixed date. Each Fund accounts for such dollar rolls under the purchases
and sales method and receives compensation as consideration for entering into
the commitment to repurchase. Each Fund must maintain liquid securities having a
value not less than the repurchase price (including accrued interest) for such
dollar rolls. The market value of the securities that each Fund is required to
purchase may decline below the agreed upon repurchase price of those securities.
The counterparty receives all principal and interest payments, including
repayments, made in respect of a security subject to such a contract while it is
the holder. Mortgage dollar rolls may be renewed with a new purchase and
repurchase price and a cash settlement made on settlement date without physical
delivery of the securities subject to the contract.
OFFERING COSTS: Offering costs, which include prospectus typesetting and
printing and other fees incurred for the preparation of the initial registration
statement of the Schroder International Diversified Value, Schroder U.S. Small
and Mid Cap Opportunities, Schroder Emerging Market Equity, and Schroder
Strategic Bond Funds are being amortized over a twelve-month period from each
Fund's inception date and are reflected as deferred offering costs in the
Statements of Assets and Liabilities.
NOTE 3 -- INVESTMENT ADVISORY FEES, ADMINISTRATION AGREEMENTS AND
DISTRIBUTIONS PLANS
The Funds have entered into investment advisory agreements with 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; 1.00% for each of Schroder
International Diversified Value Fund, Schroder U.S. Opportunities Fund, Schroder
U.S. Small and Mid Cap Opportunities Fund and Schroder Emerging Market Equity
Fund; 0.975% for the Schroder International Alpha Fund; 0.25% for each of
Schroder Enhanced Income Fund and Schroder Total Return Fixed Income Fund; 0.75%
for the Schroder Strategic Bond Fund; and 0.40% for each of Schroder Municipal
Bond Fund and Schroder Short-Term Municipal Bond Fund.
SIMNA has 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 Diversified Value Fund, the Schroder International Alpha Fund, the
Schroder Emerging Market Equity Fund and the Schroder Strategic Bond Fund. SIMNA
pays SIMNA Ltd. 50% of the investment advisory fees it receives from these
Funds.
The administrator of SGST is Schroder Fund Advisors, Inc. ("Schroder Advisors"),
a wholly owned subsidiary of SIMNA. Schroder Advisors receives no compensation
for its services for the Schroder North American Equity Fund. SIMNA acts as
administrator to the Schroder U.S. Opportunities Fund and the Schroder
International Alpha Fund. SIMNA's compensation for its services as administrator
is included in the Schroder U.S. Opportunities and 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 expenses of the Investor Shares of certain Funds, the
Funds' adviser has contractually agreed to reduce its compensation (and, if
necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses) for the period ended April 30, 2007 to the extent that
the total annual fund operating expenses of a Fund allocable to each Fund's
Investor Shares exceed the following annual rates (based on the average daily
net assets attributable to each Fund's Investor Shares): Schroder International
Diversified Value Fund: 1.25%; Schroder U.S. Opportunities Fund: 1.70%; Schroder
U.S. Small and Mid Cap Opportunities Fund:
- --------------------------------------------------------------------------------
107
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
1.40%; Schroder International Alpha Fund: 1.25%; Schroder Emerging Market Equity
Fund: 1.75%; Schroder Enhanced Income Fund: 0.40%; Schroder Strategic Bond Fund:
1.15%; Schroder Total Return Fixed Income Fund: 0.40%; Schroder Municipal Bond
Fund: 0.55%; and Schroder Short-Term Municipal Bond Fund: 0.55%. In addition, in
order to limit the expenses of the Advisor Shares of certain Funds, the Funds'
adviser has contractually agreed to reduce its compensation (and, if necessary,
to pay other Fund expenses, other than interest, taxes, and extraordinary
expenses) for the period ended April 30, 2007 to the extent that the total
annual fund operating expenses of a Fund allocable to each Fund's Advisor Shares
exceed the following annual rates (based on the average daily net assets
attributable to each Fund's Advisor Shares): Schroder International Diversified
Value Fund: 1.50%; Schroder U.S. Opportunities Fund: 1.95%; Schroder U.S. Small
and Mid Cap Opportunities Fund: 1.65%; Schroder International Alpha Fund: 1.50%;
Schroder Emerging Market Equity Fund: 2.00%; Schroder Enhanced Income Fund:
0.65%; Schroder Strategic Bond Fund: 1.40%; Schroder Total Return Fixed Income
Fund: 0.65%; Schroder Municipal Bond Fund: 0.80%; and Schroder Short-Term
Municipal Bond Fund: 0.80%. These fee waivers have been extended until February
28, 2008.
The Funds have adopted a Distribution Plan (the "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 which may make 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 International Diversified Value, Schroder U.S. Opportunities,
Schroder U.S. Small and Mid Cap Opportunities, Schroder International Alpha,
Schroder Emerging Market Equity and Schroder Strategic Bond 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 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 International Diversified Value, Schroder U.S. Opportunities, Schroder
U.S. Small and Mid Cap Opportunities, Schroder International Alpha, Schroder
Emerging Market Equity and Schroder Strategic Bond Funds for the six months
ended April 30, 2007 totaled $0, $4,210, $1, $380, $0 and $126, 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
for the six months ended April 30, 2007, Trustees who are not interested persons
of the Funds, SIMNA or Schroder Advisors received an annual retainer of $25,000
and $2,500 per meeting attended in person or $1,000 per meeting attended by
telephone. Members of an Audit Committee for one or more of such Funds received
an additional $1,000 per year. Payment of meeting fees were allocated only among
those Funds to which the meeting related. Effective November 1, 2006, several
Trustees became Trustee Emeritus. For their services, the Emeritus trustees will
instead receive an annual retainer of $15,000, for a period of two years.
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.
- --------------------------------------------------------------------------------
108
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
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, 2007
were as follows:
PURCHASES SALES AND MATURITIES
------------ --------------------
Schroder North American Equity Fund ............................ $137,216,301 $234,755,486
Schroder International Diversified Value Fund .................. 3,373,046 3,241,548
Schroder U.S. Opportunities Fund ............................... 115,166,464 80,007,121
Schroder U.S. Small and Mid Cap Opportunities Fund ............. 6,036,697 4,330,147
Schroder International Alpha Fund .............................. 34,864,151 28,990,281
Schroder Emerging Market Equity Fund ........................... 7,043,798 7,434,667
Schroder Enhanced Income Fund .................................. 6,000,578 21,469,807
Schroder Strategic Bond Fund ................................... 20,363,376 11,378,153
Schroder Total Return Fixed Income Fund ........................ 10,444,092 10,637,275
Schroder Municipal Bond Fund ................................... 66,211,524 12,051,445
Schroder Short-Term Municipal Bond Fund ........................ 35,356,675 17,657,721
Purchases and proceeds from sales and maturities of U.S. Government securities
for the six months ended April 30, 2007 were as follows:
PURCHASES SALES AND MATURITIES
------------ --------------------
Schroder Enhanced Income Fund .................................. $ 217,476 $ 2,355,024
Schroder Strategic Bond Fund ................................... 69,140,551 63,935,103
Schroder Total Return Fixed Income Fund ........................ 39,703,223 40,347,265
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, 2007 and October 31, 2006 the Schroder North American Equity Fund
realized gains from in-kind redemptions of $54,389,384 and $29,225,391,
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 temporary
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,
reclassifications of long-term capital gain distributions on Real Estate
Investment Trust securities, partnership and swap investments, 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.
- --------------------------------------------------------------------------------
109
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
The tax character of dividends and distributions declared during the years or
periods ended October 31, 2006 and October 31, 2005 (unless otherwise indicated)
was as follows:
ORDINARY TAX-EXEMPT LONG-TERM
INCOME INCOME CAPITAL GAIN TOTAL
----------- ---------- ------------ -----------
Schroder North American Equity Fund
2006 ........................................... $20,622,880 $ -- $12,682,711 $33,305,591
2005* .......................................... 26,204,109 -- 22,269,052 48,473,161
2005** ......................................... 45,862,771 -- 5,815,931 51,678,702
Schroder U.S. Opportunities Fund
2006 ........................................... -- -- 5,427,542 5,427,542
2005 ........................................... 1,951,101 -- 7,228,034 9,179,135
Schroder International Alpha Fund
2006 ........................................... 128,898 -- -- 128,898
2005 ........................................... 71,012 -- -- 71,012
Schroder Enhanced Income Fund
2006 ........................................... 5,270,351 -- -- 5,270,351
2005+ .......................................... 2,343,082 -- -- 2,343,082
Schroder Strategic Bond Fund
2006++ ......................................... 153,790 -- -- 153,790
Schroder Total Return Fixed Income Fund
2006 ........................................... 1,032,110 -- -- 1,032,110
2005+ .......................................... 304,071 -- -- 304,071
Schroder Municipal Bond Fund
2006 ........................................... 877,054 5,918,223 -- 6,795,277
2005 ........................................... 478,251 2,331,139 -- 2,809,390
Schroder Short-Term Municipal Bond Fund
2006 ........................................... 937,871 4,695,148 -- 5,633,019
2005 ........................................... 550,043 2,562,209 -- 3,112,252
* For the six months ended October 31, 2005. The Fund's fiscal year end
changed from April 30 to October 31.
** For the year ended April 30,
+ Fund commenced investment activities on December 31, 2004.
++ Fund commenced investment activities on June 30, 2006.
- --------------------------------------------------------------------------------
110
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
As of October 31, 2006, 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 ............. $38,832,645 $ -- $33,757,513 $ -- $138,342,515 $ (38,382) $210,894,291
Schroder International
Diversified Value Fund .. 140,442 -- -- -- 398,127 (1,467) 537,102
Schroder U.S. Opportunities
Fund .................... 7,334,635 -- 13,698,498 -- 26,287,360 -- 47,320,493
Schroder U.S. Small and Mid
Cap Opportunities Fund .. 3,892 -- -- (49,147) 278,701 (7,447) 225,999
Schroder International
Alpha Fund .............. 430,323 -- -- (11,352,785) 2,636,591 (5,253) (8,291,124)
Schroder Emerging Market
Equity Fund ............. 61,444 -- -- (159,884) 927,931 (9,465) 820,026
Schroder Enhanced Income
Fund .................... 552,462 -- -- (368,466) (382,636) (578,266) (776,906)
Schroder Strategic
Bond Fund ............... 45,223 -- -- (142,853) 183,683 8,267 94,320
Schroder Total Return
Fixed Income Fund ....... 95,481 -- -- (162,689) 33,072 (126,183) (160,319)
Schroder Municipal Bond
Fund .................... 127,595 773,849 -- (252,645) 2,370,415 (869,833) 2,149,381
Schroder Short-Term
Municipal Bond Fund ..... 93,131 551,326 -- (475,151) 392,859 (622,519) (60,354)
As of October 31, 2006, 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 U.S. Small and Mid Cap Opportunities Fund .......... $ 49,147 2014
Schroder International Alpha Fund ........................... 6,998,663 2009
3,440,360 2010
913,762 2011
Schroder Emerging Market Equity Fund ........................ 159,884 2014
Schroder Enhanced Income Fund ............................... 7,778 2013
360,688 2014
Schroder Strategic Bond Fund ................................ 142,853 2014
Schroder Total Return Fixed Income Fund ..................... 162,689 2014
Schroder Municipal Bond Fund ................................ 152,837 2012
99,808 2013
Schroder Short-Term Municipal Bond Fund ..................... 96,239 2012
234,915 2013
143,997 2014
- --------------------------------------------------------------------------------
111
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2007 (UNAUDITED)
During the year ended October 31, 2006, capital loss carryforwards that were
utilized to offset gains were as follows:
AMOUNT
----------
Schroder International Alpha Fund ........................... $1,140,498
Schroder Municipal Bond Fund ................................ 185,541
At April 30, 2007, 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 .................... $880,883,138 $144,171,479 $(21,978,972) $122,192,507
Schroder International Diversified Value Fund .......... 10,947,443 1,951,577 (221,355) 1,730,222
Schroder U.S. Opportunities Fund ....................... 255,459,454 45,538,029 (3,040,454) 42,497,575
Schroder U.S. Small and Mid Cap Opportunities Fund ..... 9,825,651 1,070,362 (126,704) 943,658
Schroder International Alpha Fund ...................... 51,507,934 6,704,119 (623,684) 6,080,435
Schroder Emerging Market Equity Fund ................... 13,865,275 2,885,621 (177,079) 2,708,542
Schroder Enhanced Income Fund .......................... 118,025,885 142,913 (768,241) (625,328)
Schroder Strategic Bond Fund ........................... 47,243,676 397,233 (84,839) 312,394
Schroder Total Return Fixed Income Fund ................ 29,436,551 130,827 (85,640) 45,187
Schroder Municipal Bond Fund ........................... 323,872,464 3,042,328 (1,441,790) 1,600,538
Schroder Short-Term Municipal Bond Fund ................ 208,000,948 1,132,953 (898,640) 234,313
NOTE 8 -- PORTFOLIO INVESTMENT RISKS
Schroder International Diversified Value, Schroder International Alpha, and
Schroder Emerging Market Equity Funds have a relatively large portion of their
assets invested in companies domiciled in particular foreign countries,
including emerging markets. The Funds may be more susceptible to political,
social and economic events adversely affecting those countries and such issuers.
Each of Schroder International Diversified Value, Schroder International Alpha,
Schroder Emerging Market Equity and Schroder Strategic Bond Funds may invest
more than 25% of its total assets in issuers located in any one country or group
of countries. To the extent that it does so, a 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 Funds
may invest in countries with limited or developing capital markets. Investments
in these markets may involve greater risk than investments in more developed
markets.
- --------------------------------------------------------------------------------
112
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
APRIL 30, 2007 (UNAUDITED)
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, 2007 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 ...................... 6 57.65%
Schroder International Diversified Value Fund ............ 1 100.00
Schroder U.S. Opportunities Fund ......................... 3 74.27
Schroder U.S. Small and Mid Cap Opportunities Fund ....... 3 97.67
Schroder International Alpha Fund ........................ 1 92.05
Schroder Emerging Market Equity Fund ..................... 3 100.00
Schroder Enhanced Income Fund ............................ 1 97.08
Schroder Strategic Bond Fund ............................. 2 93.60
Schroder Total Return Fixed Income Fund .................. 4 99.85
Schroder Municipal Bond Fund ............................. 4 90.54
Schroder Short-Term Municipal Bond Fund .................. 3 90.14
Some of the accounts shown above for Schroder International Diversified Value,
Schroder U.S. Small and Mid Cap Opportunities, Schroder International Alpha,
Schroder Emerging Market Equity, Schroder Enhanced Income, Schroder Strategic
Bond and Schroder Total Return Fixed Income Funds are owned by an affiliate of
SIMNA.
NOTE 10 -- NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
interpretation 48 ("FIN 48"), "ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES." This
standard defines the threshold for recognizing the benefits of tax-return
positions in the financial statements as "more-likely-than-not" to be sustained
by the taxing authority and requires measurement of a tax position meeting the
more-likely-than-not criterion, based on the largest benefit that is more than
50 percent likely to be realized. FIN 48 is effective as of the beginning of the
first fiscal year beginning after December 15, 2006. At adoption, companies must
adjust their financial statements to reflect only those tax positions that are
more-likely-than-not to be sustained as of the adoption date. The Funds will not
be required to adopt FIN 48 until April 30, 2008. The Funds are currently
evaluating the impact that will result from adopting FIN 48.
In September 2006, the FASB issued STATEMENT ON FINANCIAL ACCOUNTING STANDARDS
(SFAS) NO. 157, "FAIR VALUE MEASUREMENTS." This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. The changes to current generally accepted accounting
principles from the application of this Statement relate to the definition of
fair value, the methods used to measure fair value, and the expanded disclosures
about fair value measurements. As of April 30, 2007, the Funds do not believe
the adoption of SFAS No. 157 will impact the amounts reported in the financial
statements; however, additional disclosures may be required about the inputs
used to develop the measurements and the effect of certain of the measurements
reported on the statement of changes in net assets for a fiscal period.
- --------------------------------------------------------------------------------
113
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
PROXY VOTING (UNAUDITED)
A description of the Funds' proxy voting policies and procedures is available
upon request, without charge, by visiting the SEC's web-site 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 or on the Schroder Funds
website at http://www.schroderfunds.com, by downloading the Funds' Statement of
Additional Information. 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 calling 1-800-464-3108 and
on the SEC's website at http://www.sec.gov.
FORM N-Q (UNAUDITED)
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 is 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.
- --------------------------------------------------------------------------------
114
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
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, among others, costs for
portfolio management, administrative services, and shareholder reports (like
this one), and in the case of Advisor Shares, distribution (12b-1) fees.
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 below 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.
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/01/06 4/30/07 Ratios Period*
- --------------------------------------------------------------------------------------------------
Schroder North American Equity Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,080.10 0.32% $1.65
Advisor Shares 1,000.00 1,078.50 0.68% 3.50
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,023.21 0.32% $1.61
Advisor Shares 1,000.00 1,021.42 0.68% 3.41
- --------------------------------------------------------------------------------------------------
Schroder International Diversified Value Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,204.70 1.25% $6.83
Advisor Shares 1,000.00 1,204.20 1.50% 8.20
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.60 1.25% $6.26
Advisor Shares 1,000.00 1,017.36 1.50% 7.50
- --------------------------------------------------------------------------------
115
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/01/06 4/30/07 Ratios Period*
- --------------------------------------------------------------------------------------------------
Schroder U.S. Opportunities Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,110.00 1.25% $6.54
Advisor Shares 1,000.00 1,108.70 1.50% 7.84
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.60 1.25% $6.26
Advisor Shares 1,000.00 1,017.36 1.50% 7.50
- --------------------------------------------------------------------------------------------------
Schroder U.S. Small and Mid Cap Opportunities Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,108.90 1.40% $7.32
Advisor Shares 1,000.00 1,109.50 1.65% 8.63
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,017.85 1.40% $7.00
Advisor Shares 1,000.00 1,016.61 1.65% 8.25
- --------------------------------------------------------------------------------------------------
Schroder International Alpha Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,126.00 1.25% $6.59
Advisor Shares 1,000.00 1,124.30 1.50% 7.90
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.60 1.25% $6.26
Advisor Shares 1,000.00 1,017.36 1.50% 7.50
- --------------------------------------------------------------------------------------------------
Schroder Emerging Market Equity Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,182.30 1.75% $9.47
Advisor Shares 1,000.00 1,180.90 2.00% 10.81
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 $1,021.80 0.40% $2.01
Advisor Shares 1,000.00 1,020.50 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
- --------------------------------------------------------------------------------
116
- --------------------------------------------------------------------------------
SCHRODER MUTUAL FUNDS
- --------------------------------------------------------------------------------
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/01/06 4/30/07 Ratios Period*
- --------------------------------------------------------------------------------------------------
Schroder Strategic Bond Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,031.60 1.15% $5.79
Advisor Shares 1,000.00 1,031.40 1.40% 7.05
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,019.09 1.15% $5.76
Advisor Shares 1,000.00 1,017.85 1.40% 7.00
- --------------------------------------------------------------------------------------------------
Schroder Total Return Fixed Income Fund
- --------------------------------------------------------------------------------------------------
Actual Expenses
Investor Shares $1,000.00 $1,028.30 0.40% $2.01
Advisor Shares 1,000.00 1,027.00 0.65% 3.27
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 $1,017.00 0.55% $2.75
Advisor Shares 1,000.00 1,015.80 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 $1,017.70 0.55% $2.75
Advisor Shares 1,000.00 1,016.50 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
* 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).
- --------------------------------------------------------------------------------
117
- --------------------------------------------------------------------------------
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRIVACY STATEMENT
- --------------------------------------------------------------------------------
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 nonpublic 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 SchroderMutual 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.
- --------------------------------------------------------------------------------
[LOGO] SCHRODERS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR Schroder Investment Management North America Inc.
875 Third Avenue, 22nd Floor
New York, NY 10022
TRUSTEES Catherine A. Mazza (CHAIRMAN)
David N. Dinkins*
Peter E. Guernsey
John I. Howell*
Peter S. Knight
William L. Means
Clarence F. Michalis*
Hermann C. Schwab*
James D. Vaughn
*TRUSTEE EMERITUS
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
48429
[LOGO] 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, 2007 through April 30,
2007 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.
- --------------------------------------------------------------------------------
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
/s/ Mark A. Hemenetz
By (Signature and Title)* ----------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date June 27, 2007
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.
(Registrant) Schroder Global Series Trust
/s/ Mark A. Hemenetz
By (Signature and Title)* ----------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date June 27, 2007
/s/ Alan M. Mandel
By (Signature and Title)* ----------------------------------
Alan M. Mandel,
Treasurer and Chief Financial Officer
Date June 27, 2007
* Print the name and title of each signing officer under his or her signature.