UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSRS
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-07840
SCHRODER SERIES TRUST
(Exact name of registrant as specified in charter)
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875 Third Avenue, 22nd Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
Schroder 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, 2008
DATE OF REPORTING PERIOD: APRIL 30, 2008
ITEM 1. REPORTS TO STOCKHOLDERS.
SCHRODER MUTUAL FUNDS
APRIL 30, 2008 SEMI-ANNUAL REPORT
Schroder International Alpha Fund
Schroder International Diversified Value Fund
Schroder Emerging Market Equity Fund
Schroder U.S. Opportunities Fund
Schroder U.S. Small and Mid Cap Opportunities Fund
Schroder North American Equity Fund
Schroder Total Return Fixed Income Fund
Schroder Municipal Bond Fund
Schroder Short-Term Municipal Bond Fund
Schroder Strategic Bond Fund
Schroder Multi-Asset Growth Portfolio
(SCHRODERS LOGO)
SCHRODER MUTUAL FUNDS
May 19, 2008
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, 2008. The Report
includes information designed to help you understand the status of your
investment -- the Management Discussion and Analysis prepared by portfolio
managers explains how they put your money to work in various markets; the
Schedules of Investments give you a point-in-time picture of the holdings in
your fund; and additional information includes a detailed breakdown of other
financial information. We encourage you to read the Report and thank you for
making Schroders part of your financial plan. Please note that the Report
includes information covering the Schroder Multi-Asset Growth Portfolio, which
was launched on December 20, 2007.
The six months under review were extremely volatile for equity investors. U.S.
and international markets moved significantly lower, weighed down by increased
fears of a U.S.-led recession. Indeed, some forecasters believe the impact of
the credit crisis and the on-going problem with subprime loans has already
pushed the economy into a recession. The U.S. Federal Reserve (the "Fed") moved
aggressively to inject liquidity into financial markets and bolster confidence
in the financial system. However, the problems appear to have affected consumers
in the U.S. and the Fed's actions have not led to real economic stimulation.
This is evidenced by the fact that banks are still cautious in extending credit
to borrowers. Central banks elsewhere also stepped up liquidity operations, but
generally the banking sector stayed risk averse as judged from the spreads
between money market and official rates.
In the U.S., a recent survey revealed that consumer confidence is at its lowest
ebb since 2003. The world's financial markets, meanwhile, stabilized over March
and April, mainly as a result of the Fed's bailout of Bear Stearns. This, along
with the continued injection of liquidity into the financial system, has gone
some way to restoring confidence to the markets.
While the Fed's Open Market Committee cut the Fed Funds rate to 2.00% -- the
seventh cut in rates since September last year -- we believe it will likely be
forced to make further cuts later this year since it is doubtful that interest
rates are yet low enough to make a significant difference to the consumer or the
troubled housing market. As such Schroders now foresees U.S. interest rates
falling to 1.5% and remaining low throughout 2009 -- and possibly into 2010.
Once the time is right, we believe that Fed chairman Ben Bernanke will be as
decisive in raising rates as he has been in lowering them.
In Europe the picture was somewhat mixed as the gap between the northern and
southern countries widened. In the north, the French and German economies held
up relatively well as their key export businesses remained strong. However, in
the south, the Italian economy appears to be on the brink of recession while
Spain looks precipitously close to following suit. The release of the European
Central Bank's ("ECB") credit survey, published in early May, highlighted the
extent to which tight credit is affecting the Eurozone. An interest rate cut by
the ECB was expected to follow.
Among some of the key macro trends in the markets over the past six months --
the impact of the U.S. housing market and problems with subprime, 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. In the emerging market economies, growth moderated somewhat but, with
the culmination of momentum at the end of last year, the added income effect
from recent increases in commodity prices and liquidity in Asia suggests that
emerging markets should be less affected by the global slowdown. However,
because the region's monetary policy remains closely tied to the Fed,
overheating is a concern. In this environment, we believe monetary authorities
in Asia are likely to cool economic activity with measures such as significant
currency appreciation. Meanwhile, the latest surveys indicate that the emerging
region looks less attractive in terms of valuation, but continues to be popular
with international investors. Moreover, despite a downgrade in expected earnings
growth in recent months, emerging markets have the strongest prospective
earnings growth relative to other regions.
1
SCHRODER MUTUAL FUNDS
As the U.S. dollar reached new lows against the euro and the pound, there is, in
fact, evidence that now clearly shows a significant degree of de-coupling of the
global economy 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 year. 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. economy. 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.
Our overall outlook for the rest of 2008 remains cautiously optimistic. While we
expect a slowdown, both globally and in the U.S., we do not see the current
conditions as the start of a more significant downturn. Although one can never
predict with absolute certainty, we believe that the global economy will move
into a period of moderate but continued positive growth with controlled
inflation. Thus, we are CAUTIOUSLY optimistic that a full-blown and longer-term
recession will not materialize. We do not think recession, should it come, would
last more than two quarters.
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 MAY NO LONGER
APPEAR IN THE SCHEDULES OF INVESTMENTS AS OF APRIL 30, 2008.
2
SCHRODER INTERNATIONAL ALPHA FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder International Alpha Fund
(the "Fund") fell 10.72% (Investor Shares) and 10.85% (Advisor Shares) compared
to the Morgan Stanley Capital International EAFE Index (the "Index"), a
broad-based basket of international stocks, which fell 9.21%.
MARKET BACKGROUND
International equity markets moved significantly lower over the past six months,
weighed down by increasing fears of a U.S.-led recession, triggered by the
impact of the credit crisis. The U.S. Federal Reserve (the "Fed") moved
aggressively to inject liquidity into financial markets and support confidence
in the financial system. Meanwhile, economic growth in emerging markets
continued to be supported by long-term structural trends and helped balance the
global economy.
Marginal demand in commodities such as oil continued to be driven by emerging
market countries whose rapid economic growth is supported by industrialization
and infrastructure spending. Liquidity from commodity-related profits in
economies producing those goods continued to soar. This liquidity was welcomed
in the market as evidenced by stakes taken in various financial institutions
during this volatile period.
Key trends such as infrastructure growth and domestic demand have supported the
strength of commodity prices -- including soft commodities, energy and metals.
The materials and energy sectors were, therefore, the best performers in the
period.
PORTFOLIO REVIEW
From a regional perspective, pan-European holdings and the Pacific excluding
Japan contributed most to performance, but were overshadowed by weaker returns
in emerging markets and Japan. From a sector view on a global basis, our stock
selection and overweight stance in material companies (RIO TINTO, SYNGENTA,
LINDE) added most value. RIO TINTO benefited from rising demand for base metals,
especially from China and India on infrastructure projects. Shares in steel
producer ARCELORMITTAL -- a relatively recent addition -- also rose strongly.
One of the key developments in the period under review, which benefited the
positioning of the Fund, was the growing impact of climate change issues,
especially as they combined with high energy prices. In addition, acceptance
among governments of the importance of tackling global climate change has led a
sizeable portion of arable land to be dedicated to 'growing biofuels,' which in
turn has contributed to strong soft commodities prices. This had led to an
increase in spending on items such as fertilizer, tractors and irrigation
systems. This is reminiscent of what happened to spending in the oil and gas
industry when oil prices rose sharply. We believe this cycle is in its early
stages.
The consumer discretionary (ADIDAS, SEKISUI CHEMICAL) and healthcare (ROCHE
HOLDING, TEVA PHARMACEUTICAL INDUSTRIES) sectors also made meaningful
contributions to performance.
In contrast, energy, which has made a strong contribution in the past, did not
help during the period as some of our holdings (CAMECO, NIKO RESOURCES)
underperformed. Uranium producer (CAMECO) was held back by market concerns over
uranium spot prices. We nevertheless expect demand to be underpinned by a
long-term nuclear power cycle, a function of the global climate change theme.
Industrials (EBARA, DAEWOO SHIPBUILDING & MARINE ENGINEERING) also had a
negative impact. DAEWOO was largely subject to profit-taking, as we believe the
longer-term investment case remains. Our underweight to financials helped, but
stock selection detracted as holdings such as KEPPEL LAND and INDUSTRIAL &
COMMERCIAL BANK OF CHINA underperformed.
OUTLOOK
Emerging markets have shown relative strength and economic momentum of their
own, supporting the decoupling theme, and this has taken place despite the
economic slowdown witnessed in the U.S. and parts of Europe. Healthy financial
positions, as measured by strong current account balances and the positive
impact of commodity prices, have continued to help emerging markets generate
positive domestic trends. This is a key factor because, as the relative size of
emerging markets increases in the global economy, they have helped balance
weaknesses emanating from the developed world. We continue to have exposure to
strong trends in emerging market economies.
3
SCHRODER INTERNATIONAL ALPHA FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
On the other hand, however, we believe that the delicate balancing act that the
global economy is experiencing currently could lead to a strong global
deceleration. We nevertheless also expect it to avoid a global recession as the
combined action of global central banks together with powerful long-term
structural trends help mitigate the negative impact from the financial crisis.
We also believe that global growth deceleration will provide some relief to
inflationary pressures as capacity utilization comes down and pressure on
commodity prices is likely to ease.
In this environment, our goal is to find those attractively priced quality
growth companies with sustainable competitive advantages that are being unfairly
penalized by the market, possibly because of the lack of short-term visibility,
but where we see attractive long-term (three-to-five year) prospects. We
continue to believe that the unraveling of some key long-term trends -- such as
climate change, demographics and 'Chindia' -- will provide some companies the
opportunity to develop stronger, sustainable earnings growth above what the
market is expecting. In addition, we believe that the current financial crisis
is providing some opportunities to add to stocks that have been unfairly
punished by the markets.
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2008 April 30, 2008 (b) April 30, 2008 (b)
-------------- ------------------ ------------------
Schroder International Alpha Fund (a) --
Investor Shares ..................... 1.01% 20.41% 6.07%
Advisor Shares ...................... 0.64% 20.10%(c) 5.80%(c)
(a) Effective April 1, 2006, the advisory fee 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 above 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
- -------- ----------------
ArcelorMittal 2.8%
SBM Offshore 2.7
Roche Holding 2.7
Rio Tinto 2.6
Daewoo Shipbuilding &
Marine Engineering 2.5
GEOGRAPHIC ALLOCATION
(PIE CHART)
% of Investments
----------------
Continental Europe 34.7%
United Kingdom 18.1
Emerging Markets 14.8
Pacific ex-Japan 13.6
Japan 12.7
North America 4.0
Short-Term Investment 2.1
4
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder International Diversified
Value Fund (the "Fund") fell 11.09% (Investor Shares) and 11.25% (Advisor
Shares) compared to the Morgan Stanley Capital International EAFE Index (the
"Index"), a broad-based basket of international stocks, which fell 9.21% during
this same period.
MARKET BACKGROUND
The period under review was turbulent for equity markets as the subprime crisis
developed into a credit crunch, pushing the U.S. economy close to a recession
and giving rise to concerns over the outlook for global growth. The U.S. Federal
Reserve (the "Fed") took aggressive action in an attempt both to avert a
protracted slowdown in the U.S. economy (cutting interest rates by 250 basis
points to 2.00%) and to restore confidence in the financial system. The Fed
facilitated the rescue of Bear Stearns by JP Morgan Chase in March, which marked
a turning point in terms of sentiment, offering the hope that the Fed would
successfully protect other participants and not allow the credit crunch to
undermine the financial system.
Markets became very narrow towards the end of 2007 as the threat of a U.S.
recession increased. Defensive stocks were favored during the sixth-month
period, as investors became concerned about the possibility of recession and
sought the comparative safety of high quality, large cap stocks. Resource stocks
also outperformed, supported by rising commodity prices, takeover speculation in
the materials sector and continued growth in China. Value and small cap stocks
underperformed the broader market as risk aversion increased.
PORTFOLIO REVIEW
The Fund is managed using a bottom-up, unconstrained approach. The Fund aims to
capture as many different value themes as possible, and expects to benefit from
these in the long run as markets recognize this value. There was also some value
found in relatively less expensive real estate stocks, which had underperformed
the broader financials sector, and in Asian emerging market technology. These
additions were partly funded by a reduction to the materials sector, especially
metals and mining stocks, following strong outperformance.
For the six-month period under review, the Fund underperformed the Index.
Relative performance was weakest in the consumer discretionary sector, where the
Fund's holdings in household durables (particularly UK housebuilders) and
specialty retailers (again, predominantly in the UK) underperformed. Not owning
thematic chemicals stocks, particularly those benefiting from surging food and
agricultural commodity prices, detracted from performance within the materials
sector and the Fund's comparatively low exposure to the defensive consumer
staples sector and pharmaceuticals proved detrimental in relative terms.
Positive contributors to performance in the period included UK utilities,
telecommunications in continental Europe and emerging markets and the Fund's
technology holdings (particularly communications equipment stocks). The Fund
also outperformed the Index in the financial sector, with good relative returns
from consumer finance and diversified financial services stocks.
OUTLOOK
The outlook for value is typically discussed as a top-down decision, looking at
how extreme the valuation spread has become versus non-value stocks. While these
approaches have some merit, we believe they lack a real-world portfolio context.
Therefore, we prefer to look at the dividend yield of the Fund's portfolio to
see whether the Fund itself represents an attractive entry point. Currently the
Fund's yields 4.4%, which is cheaper by our calculation than it would have been
90% of the time over the last 20 years. Interestingly, in the middle of 2007 the
opposite was the case. We believe that the time to be negative on value has
passed and forward-looking investors should look to increase exposure to value
stocks at this attractive entry point.
5
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2008 Inception (a)
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Schroder International Diversified Value Fund --
Investor Shares ............................. (2.91)% 13.36%
Advisor Shares .............................. (3.22)% 13.05%
(a) From commencement of Fund operations on August 30, 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*
- -------- -----------------
TeliaSonera 0.5%
BP 0.5
Credit Agricole 0.5
TOTAL 0.5
Outokumpu 0.5
* Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
---------------------
(PIE CHART)
% of Investments
----------------
Continental Europe 43.4%
United Kingdom 13.0
Japan 12.8
Emerging Markets 11.7
Pacific ex-Japan 9.3
North America 7.4
Short-Term Investment 2.4
6
SCHRODER EMERGING MARKET EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ending April 30, 2008, the Schroder Emerging Market Equity
Fund (the "Fund") fell 11.25% (Investor Shares) and 11.27% (Advisor Shares),
compared to the Morgan Stanley Capital International Emerging Markets Index (the
"Index"), a broad-based basket of international stocks, which fell 10.28% during
the same period.
MARKET BACKGROUND
Global emerging equity markets delivered a negative return over the period.
Emerging markets experienced a sharp sell-off at the beginning of 2008 as
investors' appetite for risk declined. This occurred against a background of
continuing uncertainties about the prospects for the U.S. and global economies
and ongoing concerns about problems in global credit markets. Although markets
remained volatile as the year progressed, risk appetite improved somewhat in the
closing weeks of the period (with some investors taking the view that the worst
of the 'credit crunch' may have passed) and emerging equity markets rallied
strongly.
Turkey, China and the Philippines were the weakest performing markets over the
period. The Turkish market is particularly sensitive to changes in risk
appetite, while increased domestic political tensions were also a negative.
China underperformed significantly, following the strong performance delivered
by this market for much of 2007. The People's Bank of China continued with its
policy of monetary tightening, while data was released showing consumer price
inflation hitting 8.7% year-on-year (driven to a large extent by severe
weather-related supply disruptions). This was the highest level in over a
decade, and raised investor concerns about further monetary policy tightening.
The relatively small Philippines market fell sharply, with rising inflation a
concern for investors.
The Indian market also underperformed by a wide margin despite strong growth
data as inflation started to rise and valuations looked increasingly expensive
relative to other markets.
The relatively small Moroccan market delivered the best returns among emerging
markets, while Brazil also outperformed other emerging markets by a wide margin.
Evidence of the continuing strength of Brazil's economy included the release of
data showing fourth quarter GDP growing by 6.2% year-on-year, which was ahead of
consensus expectations. The Brazilian market was also boosted by strength in
commodity prices. Other emerging markets that performed well were the relatively
small Jordanian, Egyptian and Colombian markets. The Argentine market also
performed well, gaining from the strong performance of Index heavyweight oil
services and equipment company TENARIS.
PORTFOLIO REVIEW
Fund performance was behind the Index over the period. Although our relatively
high exposure to the outperforming Brazilian market added value this was
outweighed by the negative impact of stock selection. Overweights in the
underperforming Korean and Turkish markets also held back relative returns, as
did our choice of stocks in these markets. On the positive side, security
selection in China added value, as did our underweight in the underperforming
Indian market. An overweight in Thailand (which outperformed) added value as did
stock selection in this market. The Fund's cash holdings also boosted relative
returns, given the weak market conditions over the period.
The Fund's portfolio has remained consistently overweight Russia (robust
economic fundamentals), Brazil (valuations and earnings growth are reasonable)
and Korea (attractive valuations) over the past six months. We raised our
exposure to Israel, after valuations became more attractive. We reduced the size
of the Fund's underweight in India (valuations have improved although this
market is still not cheap and we have concerns about inflation). We reduced the
Fund's exposure to South Africa because of the deteriorating economic outlook
and the acute power shortages. The South African rand also appears to be
vulnerable. We also reduced exposure to Taiwan. Although relations with China
should improve following recent elections, this market is particularly
vulnerable to slowing growth in the developed economies.
7
SCHRODER EMERGING MARKET EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
OUTLOOK
Against an uncertain near-term background we are maintaining a cautious stance.
There is still a risk that the economic slowdown in the developed economies will
be worse than expected and that the recent market strength will prove to be a
false dawn. Although the emerging economies have decoupled from the U.S. to some
extent and the medium- to longer-term outlook for emerging markets remains
positive, they still remain vulnerable to short-term market volatility and a
global recession. Global emerging markets ("GEMs") are attractively valued and
earnings growth is likely to remain robust in 2008. However, with volatility
likely to remain high in the near term markets could see further weakness. Given
our positive medium- to long-term outlook for emerging markets we would view
further weakness as a buying opportunity for GEMs.
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2008 Inception (a)
-------------- -------------
Schroder Emerging Market Equity Fund --
Investor Shares ............................ 27.97% 25.17%
Advisor Shares ............................. 27.80% 24.90%
(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 5.7%
MSCI Daily Trust Net Brazil USD,
Expires 03/05/09 3.7
Petroleo Brasileiro ADR 3.7
China Mobile 3.6
MSCI Daily Total Return
Net Emerging Markets India,
Expires 10/25/08 2.6
* Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
---------------------
(PIE CHART)
% of Investments
----------------
Asia/Far East 53.3%
Latin America 21.0
Europe 15.7
Mid-East 4.0
Africa 2.6
Short-Term Investment 3.4
8
SCHRODER U.S. OPPORTUNITIES FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder U.S. Opportunities Fund
(the "Fund") fell 7.85% (Investor Shares) and 7.96% (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 fell 12.92%.
The Fund's outperformance of the Index was driven by strong stock selection. In
particular, stock selection in the technology, health care and consumer
discretionary sectors contributed to performance. Stock selection detracted in
only two sectors: utilities and autos and transportation.
MARKET BACKGROUND
The six months under review were turbulent for small cap stocks. Small companies
generally produced weak returns over this time as the Federal Reserve reduced
the Federal Funds rate from 4.50% on October 31, 2008 to 2.00% as of April 30,
2008 and held out the possibility of another rate cut in the future. In addition
to the market turmoil around the subprime mortgage crisis and housing market
correction, overall economic and market conditions -- such as sluggish growth
over the past two quarters in the U.S. economy -- were unfavorable for
investors.
PORTFOLIO REVIEW
During the six-month period under review the Fund performed well relative to its
Index, with stock selection adding value in six out of ten sectors. Strong
contributors to outperformance were GARTNER (an information technology research
company) and PERRIGO (a company which manufactures and markets over-the-counter
drugs); both announced strong Q1 2008 earnings due to record sales and profit
revenues. RENT-A-CENTER (offers household durable products for rent) also added
significant value to the Fund's portfolio. The company's profits doubled in the
first quarter as sales at existing stores boosted overall revenue.
Within the utilities sector, the Fund's holding in PAETEC HOLDINGS (provides
integrated communications services) hurt performance and shares of HORIZON LINES
(engages in container shipping and integrated logistics operations) fell as
well. HORIZON LINES missed first quarter earnings estimates and announced a dim
outlook for the year.
OUTLOOK
We believe that U.S. economic growth will continue at a slower rate well into
next year. The housing market continues to be a concern, with the number of new
starts declining and the inventory of unsold homes growing across America. The
impact of this slowdown, combined with high oil and gas prices, threatens
consumer spending, especially with savings rates already at historically low
levels. Although consumers have so far remained resilient, we believe that they
will eventually cut back on discretionary spending. Corporate balance sheets,
however, are on the whole quite healthy -- profits are good and companies are
increasingly focused on generating returns for shareholders.
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. OPPORTUNITIES FUND
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2008 April 30, 2008 (c) April 30, 2008 (c)
-------------- ------------------ ------------------
Schroder U.S. Opportunities Fund (a)(b) --
Investor Shares............................. (0.36)% 18.80% 9.96%
Advisor Shares.............................. (0.58)% 18.53%(d) 9.69%(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 above 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*
- ---------------------------- -----------------
St. Mary Land & Exploration 2.1%
Scientific Games Class A 2.0
Dresser-Rand Group 2.0
Reinsurance Group of America 1.7
Valueclick 1.5
* Excludes any Short-Term Investments.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ---------------------------- ----------------
Consumer Discretionary 17.1%
Technology 16.6
Financial Services 14.2
Health Care 12.1
Other Energy 9.8
Materials & Processing 7.1
Producer Durables 6.7
Utilities 3.6
Autos & Transportation 2.1
Consumer Staples 0.7
Short-Term Investment 10.0
10
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder U.S. Small and Mid Cap
Opportunities Fund (the "Fund") fell 7.06% (Investor Shares) and 7.24% (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 fell
10.90%.
The Fund's outperformance of the Index was driven by strong stock selection. In
particular, stock selection in the financial services, technology and consumer
discretionary sectors contributed to performance. Stock selection within the
materials and processing and the utilities sectors detracted from relative
performance during the six-month period.
MARKET BACKGROUND
Overall, U.S. small and mid cap stocks were in negative territory during the
six-month period under review. Volatility in the U.S. market continued during
the period from the sharp correction in August while the Federal Reserve reduced
the Federal Funds rate from 4.50% on October 31, 2007 to 2.00% on April 30,
2008. In addition to the market turmoil around the subprime mortgage crisis and
housing market correction, overall economic and market conditions -- such as
sluggish growth over the past two quarters in the U.S. economy -- were
unfavorable for investors.
PORTFOLIO REVIEW
During the six months under review, the Fund benefited from particularly good
stock selection in the financial services, technology and consumer discretionary
sectors. The Fund's holdings in the materials and processing and the utilities
sectors detracted the most from relative performance.
At the stock level, the most positive contributor was WESTAMERICA BANCORPORATION
(a provider of banking services in California), due to its "safe-haven" status
among the regional banks. ROSS STORES (a retail apparel and home accessories
store company) added significant value to the Fund's portfolio. The company
announced that it benefited from the weakening economic environment as consumers
are hunting for bargains.
PNM RESOURCES (engages in energy-related businesses) detracted the most from
performance. The company's shares fell 22% after it missed first quarter
earnings estimates. The company reported significant losses due to planned
outages, write-offs and losses due to current economic conditions.
OUTLOOK
We believe that U.S. economic growth will continue at a slower rate well into
next year. The housing market continues to be a concern, with the number of new
starts declining and the inventory of unsold homes growing. The impact of this
slowdown, combined with high oil and gas prices, threatens consumer spending,
especially with savings ratios already at historically low levels. Although
consumers have so far remained resilient, we believe that they will eventually
cut back on discretionary spending. Corporate balance sheets, however, are on
the whole quite healthy -- profits are good and companies are increasingly
focused on generating returns for shareholders.
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.
11
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2008 Inception (a)
-------------- -------------
Schroder U.S. Small and Mid Cap Opportunities Fund --
Investor Shares .................................. 2.76% 7.74%
Advisor Shares ................................... 2.41% 7.49%
(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
% OF
SECURITY INVESTMENTS*
- -------- ------------
Amdocs 3.1%
Scientific Games Class A 3.1
Barr Pharmaceuticals 2.8
DaVita 2.7
Reinsurance Group of America 2.4
* Excludes any Short-Term Investments.
SECTOR ALLOCATION
% OF
SECTOR INVESTMENTS
- ------ ------------
Technology 17.1%
Consumer Discretionary 16.7
Financial Services 13.2
Health Care 12.5
Materials & Processing 10.3
Other Energy 9.2
Utilities 6.1
Producer Durables 5.2
Consumer Staples 0.9
Autos & Transportation 0.7
Short-Term Investment 8.1
12
SCHRODER NORTH AMERICAN EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder North American Equity Fund
(the "Fund") fell 9.26% (Investor Shares) and 9.37% (Advisor Shares) compared to
the FTSE North American Index (the "Index"), a broad-based basket of North
American stocks, which fell 9.37%. For the same six-month period, the S&P 500
Index fell by 9.64%.
MARKET BACKGROUND
It was a volatile period for equity markets as the credit crisis pushed the U.S.
economy close to a recession. The U.S. Federal Reserve (the "Fed") took
aggressive action in an attempt both to avert a protracted slowdown in the U.S.
economy (cutting interest rates by 250 basis points to 2.00%) and to restore
confidence in the financial system. The Fed facilitated the rescue of Bear
Stearns by JP Morgan Chase in March which marked a turning point in terms of
sentiment, offering the hope that the Fed would successfully protect other
participants and not allow the credit crunch to undermine the financial system.
Markets became very narrow towards the end of 2007 as the threat of a U.S.
recession increased. Resources stocks outperformed, supported by rising oil and
other commodity prices and takeover speculation in the materials sector.
Defensive sectors like consumer staples and utilities also outperformed in the
risk-averse market environment, whereas the technology and telecommunications
sectors performed poorly. The financials sector was weakest and consumer
discretionary stocks also underperformed as high oil prices and falling U.S.
house prices undermined the outlook for U.S. consumer spending.
PORTFOLIO REVIEW
The Fund's portfolio consists of multiple small stock positions diversified
across sectors and industries. The Fund invests in stocks offering a favorable
combination of value, quality and momentum and top-down risk is tightly
controlled through narrow limits on sector weights versus the Index.
The Fund's exposure to the financials sector increased in the review period. We
introduced a new quality measure, based on leverage and liquidity risk, in an
attempt to identify higher quality banks and insurance stocks leading the Fund
to reposition its holding to emphasize these. Good relative performance from the
Fund's pharmaceuticals holdings prompted some changes within the healthcare
sector, switching from these to underperforming healthcare providers. Reductions
were made to the materials and utilities sectors following strong relative
performance, and to semiconductor and communications equipment stocks which had
outperformed within the technology sector.
For the six-month period under review performance was the result of small
positive contributions across a number of sectors. Within the consumer
discretionary sector the Fund benefited from being slightly underweight
underperforming media and retail companies as well as good relative returns from
its restaurants stocks. Good returns from road and rail and machinery stocks in
the industrials sector and semiconductors and communications equipment holdings
within technology added value, and the Fund successfully avoided underperforming
large cap telecommunications. The Fund underperformed the Index in the materials
sector as a result of being underweight thematic chemicals stocks, particularly
those benefiting from surging food and agricultural commodity prices.
OUTLOOK
The recent improvement in investors' sentiment has supported equity markets of
late, although there has been little sign of easing in the near-term outlook for
the U.S. economy while earnings momentum appears to be declining. 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 environments.
13
SCHRODER NORTH AMERICAN EQUITY FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2008 Inception
-------------- ----------
Schroder North American Equity Fund --
Investor Shares ................... (3.33)% 9.47%(a)
Advisor Shares .................... (3.65)% 9.13%(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 above 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
% OF
SECURITY INVESTMENTS
- ----------------------------------- -----------
Exxon Mobil 3.6%
General Electric 2.2
Microsoft 1.9
AT&T 1.9
Procter & Gamble 1.6
SECTOR ALLOCATION
% OF
SECTOR INVESTMENTS
- ----------------------------------- -----------
Manufacturing 44.5%
Finance, Insurance and Real Estate 20.8
Transportation, Communications,
Electric, Gas and Sanitary
Services 10.3
Services 8.4
Retail Trade 6.7
Mining 6.2
Agriculture, Forestry and Fishing 1.6
Wholesale Trade 0.9
Short-Term Investment 0.6
14
SCHRODER TOTAL RETURN FIXED INCOME FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
During the six months ended April 30, 2008, the Schroder Total Return Fixed
Income Fund (the "Fund") rose 4.08% (Investor Shares) and 4.05% (Advisor
Shares), compared to the Lehman U.S. Aggregate Bond Index (the "Index"), a
broad-based basket of U.S. debt securities, which rose 4.08%. The Fund remained
biased toward owning fewer corporate bonds and more Treasuries versus the
benchmark.
MARKET BACKGROUND
In the six months under review, the broad U.S. bond market (up 4.08%, as
measured by the Lehman U.S. Aggregate Bond Index) outperformed the stock market
(down 9.64%, as measured by the S&P 500 Index). The bond market performed well
over the six months under review as the Federal Reserve (the "Fed") reduced the
Fed Funds rate to 2.00% as of April 30, 2008. Oil rose 50% during the same
period in price, sparking inflation fears while economic data was generally
weak. Bond investors pulled back from riskier parts of the market and demanded
greater compensation via wider yield spreads, despite continued risk taking as
evident by higher mergers and acquisitions levels. The six months under review
were volatile for bond investors as the U.S. continued to be weighed down by
recession fears. Indeed, some forecasters believe the impact of the credit
crisis and the ongoing problem with sub-prime loans have already pushed the
economy into a recession. The Fed moved aggressively to inject liquidity into
financial markets and bolster confidence in the financial system. Financial
markets responded favorably to the Fed actions, though the overall response was
tepid and reversed just part of the year-to-date increase in risk premiums.
PORTFOLIO REVIEW
In the six months under consideration, the Fund performed in line with the
Index. The Fund's bias toward owning fewer corporate securities and more
Treasuries versus the benchmark contributed to performance at the beginning of
the review period as risk aversion in the markets spiked considerably. The
Fund's overexposure in both residential and commercial mortgage-backed
securities toward the latter half of the reporting period also contributed
positively to performance. Additionally, the Fund's exposure to the steepening
yield curve had positive impact on performance early in the reporting period.
Yield curve steepening and a slight underweight in corporate securities
contributed to negative performance towards the end of the reporting period.
OUTLOOK
Risk markets have rallied around the Fed's action to provide support to the
financial markets. While we believe the financial crisis does indeed appear to
have peaked, economic weakness is likely to persist as home prices continue to
decline nationally, job growth is negative and consumer savings remain low.
Credit also continues to tighten at banks, whose balance sheets are in need of
substantial repair even after the large capital injections that have occurred
since last fall. A period of prolonged below-trend growth, even if not outright
recession, makes a case for an eventual return to risk-averse markets.
The Fund intends to continue to overweight Treasuries and underweight corporates
as we expect the bear market for credit to be reasserted once short covering
ends and earnings expectations begin to reflect the weaker earnings environment.
The Fund is also positioned for a steeper yield curve. Elevated LIBOR spreads
demonstrated remaining problems with bank liquidity which will keep short-term
rates lower for longer than currently discounted, while commodity price
inflation is beginning to trickle into inflation expectations.
15
SCHRODER TOTAL RETURN FIXED INCOME FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2008 Inception (a)
-------------- -------------
Schroder Total Return Fixed Income Fund --
Investor Shares ............................ 6.17% 4.62%
Advisor Shares ............................. 5.91% 4.34%
(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
- -------- ----------------
General Electric Capital 2.434%,
6/27/08 9.3%
Toyota Motor Credit 2.422%,
6/10/08 8.4
U.S. Treasury Note 2.125%,
4/30/10 7.0
GNMA 5.000%, 05/15/34 5.1
Citigroup Funding 2.927%,
5/21/08 4.6
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ------ ----------------
U.S. Government Mortgage- Backed
Obligations 26.6%
Commercial Paper 25.3
U.S. Treasury Obligations 22.7
Corporate Obligations 12.0
Commercial Mortgage-Backed
Obligations 7.1
Collateralized Mortgage
Obligations 5.0
Asset-Backed Securities 0.1
Short-Term Investment 1.2
16
SCHRODER MUNICIPAL BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder Municipal Bond Fund (the
"Fund") fell 2.42% (Investor Shares) and 2.54% (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 3.38%.
The Fund underperformed the benchmark for the first five months of the period
and began to gain ground against the benchmark through the month of April. Both
the underperformance of the Fund relative to the benchmark as well as the more
recent outperformance in the month of April can be primarily attributed to the
downward pricing of Percent of LIBOR notes ("PLNs") which accounts for
approximately 15% of the Fund's portfolio. Since the credit crunch began last
August, these tax-exempt floating rate notes have been priced as fixed rate
long-term bonds with no recognition of the quarterly reset. Coupled with
distressed sales of PLNs from non-traditional holders such as hedge funds and
municipal arbitrages, prices on PLNs have fallen. Starting in April of this
year, PLN prices began to appreciate. We believe the market prices for these
securities will continue to improve over time assuming appropriate pricing of
their credit risk and market recognition of their superior yields to cash-like
or floating rate alternatives.
MARKET BACKGROUND
In the six-month period, the broad U.S. bond market (up 4.08%, as measured by
the Lehman U.S. Aggregate Bond Index) outperformed the stock market (down 9.64%,
as measured by the S&P 500 Index). The municipal bond market, meanwhile,
under-performed the taxable markets. The Lehman Municipal Bond Index (which
contains tax-exempt municipal bonds with maturities across the yield curve)
returned 1.48% for the six-month period while the Lehman U.S. Aggregate Bond
Index (comprised of taxable securities) returned 4.08% for the period.
The bond market continued its rocky ride over the six months under review. The
turmoil in the market spurred a global flight to safety which drove Treasury
yields to their lowest point since 2004. The performance of the bond market
shifted through the period as investors reassessed their view on the extent to
which interest rates would fall. The municipal market felt the effects of the
sub-prime mortgage crisis through the steady downgrades of the monoline insurers
and the failing auction rate market. The monoline insurers also back
mortgage-related debt in addition to insuring municipal credit. Due in part to
the uncertainty around the insurers and the lack of foreign investment in
municipals, the municipal market did not experience the same flight to quality.
The result of the diverging markets has been a yield ratio of Municipals to
Treasuries that has been over 100% for much of the last six months.
The long-term viability of the monoline insurers cast a shadow over the
municipal market as investors grappled with the steady stream of downgrades
starting in December with the downgrade of ACA Financial Guaranty. Over the next
several months, almost all of the insurers were either downgraded or placed on a
negative watch/outlook by Moody's, S&P or Fitch. At the end of April, only
Financial Security Assurance and Assured Guaranty carried AAA ratings from all
three rating agencies and had stable outlooks.
Problems afflicting the economy and financial systems also spread to the auction
rate market. Prior to the first quarter of 2008, the auction rate market had
generally been perceived as a liquid market. Starting in February, auction rates
began failing en masse. Banks were reluctant to take the assets back on their
books, and investors were left holding the bag with limited access to their
cash. The issuing municipalities saw the price of borrowing money rise to rates
reaching as high as 20%. For those investors able to hold a long bond, the
rising auction rates marked an opportunity to gain yield while maintaining the
same level of credit quality. Investors who had used auction rates as a cash
equivalent, however, were left with no access to cash. At the end of the period,
auction rates were still failing and many municipalities were reissuing their
auction rate debt as variable rate demand notes or fixed rate long-term bonds.
Over the six months, rates across the Treasury curve fell significantly on the
short end and fell slightly on the long end. The yield on the 2-year Treasury
fell by 1.69% -- from 3.94% to 2.25% during the reporting period. The yield on
the 10-year Treasury fell by 0.72% -- from 4.55% to 3.83%. On the long end of
the yield curve, the 30-year Treasury yield fell from 4.75% to 4.47%, or -0.28%,
during the same time period.
The yield on a 2-year AAA-rated municipal bond fell 1.11% -- from 3.38% to
2.27%. In contrast, the yield on a AAA-rated 30-year municipal bond rose 0.45%
- -- from 4.35% to 4.80%.
17
SCHRODER MUNICIPAL BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PORTFOLIO REVIEW
In the six months under consideration, the Fund underperformed the Index due to
price declines in its PLN holdings. Despite the defensive characteristic of
quarterly resets of their coupons linked to LIBOR, the PLNs have been priced
instead as long-term bonds, with no acknowledgement of their floating rate,
which provides interest rate protection.
A good example of our focus on credit enhancement by selecting issues we believe
to have high credit quality is the purchase of an escrowed to maturity
Minneapolis, Minnesota bond with an 8.875% coupon and a stated maturity of
November 2011. A portion of this bond's principal is retired annually through a
sinking fund -- creating an average life or effective maturity of April 2011.
The Fund purchased the bond at a yield of 3.48% to the 2011 effective maturity.
Because the bond is escrowed with U.S. Treasuries, we believe it is better than
any AAA-rated municipal bond -- since it cannot be downgraded. The tax-free
yield on an AAA-rated municipal bond available in the market on the same day as
the Minnesota purchase was 2.45%, according to the Bloomberg national municipal
scale. This is typical of the bonds the Fund holds -- most are secured by
third-party guarantees through insurance, a corporate guaranty, underlying
mortgages, a bank letter of credit, or secured by U.S. Treasuries or a federal
government agency.
One bond that underperformed during the period was Harris County, TX, a PLN. The
AAA-rated Harris County, TX bond is insured by AMBAC and carries an underlying
rating of AA- by S&P. The bond resets quarterly at 67% of the current
three-month LIBOR plus an additional 67 basis points. As PLNs are being priced
as long bonds, they have seen a corresponding decline in price. In addition, the
decline in price has also been driven by large trades by distressed sellers in
the market.
OUTLOOK
We intend to continue to stick to our discipline, which seeks to add value
through bottom-up security selection and diversification while seeking to
exploit the inefficiencies in the municipal bond market, which is highly
fragmented in nature and geographically dispersed. Due to these 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.
18
SCHRODER MUNICIPAL BOND FUND
PERFORMANCE INFORMATION
Annualized
One Year Ended Since
April 30, 2008 Inception (a)
-------------- -------------
Schroder Municipal Bond Fund --
Investor Shares ............................ (1.70)% 2.52%
Advisor Shares ............................. (1.95)% 2.26%
(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
- ----- ----------------
Pennsylvania 11.9%
Texas 8.3
Illinois 7.6
California 7.6
Florida 6.8
STATE % OF INVESTMENTS
- ----- ----------------
Arizona 5.2%
Ohio 5.1
Missouri 4.9
New Jersey 4.6
New York 4.3
19
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder Short-Term Municipal Bond
Fund (the "Fund") fell 1.50% (Investor Shares) and 1.73% (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 2.77%.
The Fund underperformed the Index for the first five months of the period and
began to gain ground against the Index through the month of April. Both the
underperformance of the Fund relative to the Index as well as the more recent
outperformance in the month of April can be primarily attributed to the Fund's
approximate 15% weighting in Percent of LIBOR notes ("PLNs"). Since the credit
crunch began in August, these tax-exempt floating rate notes have been priced as
fixed rate long-term bonds with no recognition of the quarterly reset. Coupled
with distressed sales of PLNs from non-traditional holders such as hedge funds
and municipal arbitrages, prices on PLNs have fallen. Starting in April of this
year, PLN prices began to appreciate. We believe the market prices for these
securities will continue to improve over time assuming appropriate pricing of
their credit risk and market recognition of their superior yields to cash-like
or floating rate alternatives.
MARKET BACKGROUND
In the six-month period, the broad U.S. bond market (up 4.08%, as measured by
the Lehman U.S. Aggregate Bond Index) outperformed the stock market (down 9.64%,
as measured by the S&P 500 Index). The municipal bond market, meanwhile,
under-performed the taxable markets. The Lehman Municipal Bond Index (which
contains tax-exempt municipal bonds with maturities across the yield curve)
returned 1.48% for the six-month period while the Lehman U.S. Aggregate Bond
Index (comprised of taxable securities) returned 4.08% for the period.
The bond market continued its rocky ride over the six months under review. The
turmoil in the market spurred a global flight to safety which drove Treasury
yields to their lowest point since 2004. The performance of the bond market
shifted through the period as investors reassessed their view on the extent to
which interest rates would fall. The municipal market felt the effects of the
subprime mortgage crisis through the steady downgrades of the monoline insurers
and the failing auction rate market. The monoline insurers also back mortgage
related debt in addition to insuring municipal credit. Due in part to the
uncertainty around the insurers and the lack of foreign investment in
municipals, the municipal market did not experience the same flight to quality.
The result of the diverging markets has been a yield ratio of Municipals to
Treasuries that has been over 100% for much of the last six months.
The long-term viability of the monoline insurers cast a shadow over the
municipal market as investors grappled with the steady stream of downgrades
starting in December with the downgrade of ACA Financial Guaranty. Over the next
several months, almost all of the insurers were either downgraded or placed on a
negative watch/outlook by Moody's, S&P or Fitch. At the end of April, only
Financial Security Assurance and Assured Guaranty carried AAA ratings from all
three rating agencies and had stable outlooks.
Problems afflicting the economy and financial systems also spread to the auction
rate market. Prior to the first quarter of 2008, the auction rate market had
generally been perceived as a liquid market. Starting in February, auction rates
began failing en masse. Banks were reluctant to take the assets back on their
books, and investors were left holding the bag with limited access to their
cash. The issuing municipalities saw the price of borrowing money rise to rates
reaching as high as 20%. For those investors able to hold a long bond, the
rising auction rates marked an opportunity to gain yield while maintaining the
same level of credit quality. Investors who had used auction rates as a cash
equivalent, however, were left with no access to cash. At the end of the period,
auction rates continued to fail, and many municipalities were reissuing their
auction rate debt as variable rate demand notes or fixed rate long-term bonds.
Over the six months, rates across the Treasury curve fell significantly on the
short end and fell slightly at the long end. The yield on the 2-year Treasury
fell by 1.69% -- from 3.94% to 2.25% during the reporting period. The yield on
the 10-year Treasury fell by 0.72% -- from 4.55% to 3.83%. On the long end of
the yield curve, the 30-year Treasury yield fell from 4.75% to 4.47%, or -0.28%,
during the same time period.
The yield on a 2-year AAA-rated municipal bond fell 1.11% -- from 3.38% to
2.27%. In contrast, the yield on a AAA-rated 30-year municipal bond rose 0.45%
- -- from 4.35% to 4.80%.
20
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PORTFOLIO REVIEW
In the six-month period ended April 30, 2008, the Fund underperformed the Index
primarily due to the downward pricing of PLNs. Despite the defensive
characteristic of quarterly resets of their coupons linked to LIBOR, PLNs have
been priced instead as long-term bonds, with no acknowledgement of their
floating rate, which provides interest rate protection. Escrowed to maturity and
prerefunded bonds generally held their value through the period.
A good example of our focus on credit enhancement by selecting issues we believe
to have high credit quality is the purchase of an escrowed to maturity Omaha
Power Electric bond with a 6.15% coupon and a stated maturity of February 2012.
A portion of the bond's principal is retired annually through a sinking fund --
creating an average life or effective maturity of August 2010. The Fund
purchased the bond at a yield of 3.55% to the 2010 effective maturity.
Because the bond is escrowed with US Treasuries, we believe it is better than
any AAA-rated municipal bond -- since it cannot be downgraded. The tax-free
yield on an AAA-rated municipal bond available in the market on the same day as
the Omaha Power purchase was 3.07%, according to the Bloomberg national
municipal scale. This is typical of the bonds the Fund holds -- most are secured
by third-party guarantees through insurance, a corporate guaranty, underlying
mortgages, a bank letter of credit, or secured by U.S. Treasuries or a federal
government agency.
One bond that underperformed during the period was Harris County, TX, a PLN. The
AAA-rated Harris County, TX bond is insured by AMBAC and carries an underlying
rating of AA- by S&P. The bond resets quarterly at 67% of the current
three-month LIBOR plus an additional 67 basis points. As PLNs are being priced
as long-term bonds, they have seen a corresponding decline in price. In
addition, the decline in price has also been driven by large trades by
distressed sellers in the market.
OUTLOOK
Our philosophy and discipline has been tested by the stressed environment that
permeates the municipal market. Throughout this credit crunch, we intend to
continue our discipline crafted over 30 years ago -- small cap relative value --
seeking superior levels of income in high levels of credit quality.
PERFORMANCE INFORMATION
One Year Ended Annualized
April 30, 2008 Since Inception (a)
-------------- -------------------
Schroder Short-Term Municipal Bond Fund --
Investor Shares ....................... (0.36)% 2.09%
Advisor Shares ........................ (0.71)% 1.82%
(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
- ----- ----------------
Pennsylvania 16.3%
Colorado 9.8
Illinois 9.6
California 8.3
Wisconsin 7.3
STATE % OF INVESTMENTS
- ----- ----------------
New York 5.9%
Texas 5.4
Missouri 4.0
Arkansas 3.4
Nevada 2.9
21
SCHRODER STRATEGIC BOND FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
In the six months ended April 30, 2008, the Schroder Strategic Bond Fund (the
"Fund") rose 1.90% (Investor Shares) and 1.87% (Advisor Shares) compared to the
Lehman U.S. Aggregate Bond Index (the "Index"), a broad-based basket of U.S.
debt securities, which rose 4.08%. As a further measure of comparison, the LIBOR
3-Month USD Fixed Index, a widely used measure of short-term debt returns, rose
1.77%.
MARKET BACKGROUND
Prevailing market conditions remain highly volatile as the investor base remains
divided on the likely path for global economic activity. The division of opinion
exists not only in the developed markets, where central banks have one eye
focused on economic growth and the other on rising inflationary pressures, but
also in the developed versus emerging markets. Investors continue the debate
over whether the strength in emerging markets will serve to support global
activity in spite of a slowdown in the developed economies.
A further major factor that is dominating market sentiment is the ongoing impact
of the credit crunch and its impact on the wider real economy coupled with the
sharp reduction in liquidity in the global credit marketplace. Perhaps the most
profound impact from the credit crunch has been seen in the banking and
brokerage sectors of the economy, with the collapse of Bear Stearns a stark
example of how profound the crisis has become.
The impact on global fixed income markets so far this year has been significant.
In line with changing views on macro economics, government markets performed
strongly in Q1 and poorly so far in Q2. 10-year U.S. yields moved from 4% to
3.30% by mid-March before rising back above 4% (at the time of writing).
However, credit markets performed in reverse to government markets, in Q1 and
strongly in Q2, as pessimism over economic conditions dissipated over the recent
weeks.
PORTFOLIO REVIEW
Central banks are in a difficult position amid slower growth and higher
inflation pressures. Whilst in the U.S. we do not expect the Fed to tighten
monetary policy given the ongoing weakness of the economy, towards the end of
last week, European Central Bank ("ECB") President Trichet made the surprise
announcement that rates were likely to be raised in the coming months in Europe.
His proclamation came despite the anticipated slower growth profile that we
expect within Europe, and despite the fragility of the financial system that
currently prevails.
Therefore, given the recent ECB announcement, our view on European fixed income
markets has lower conviction. As a result we took action to reduce the Fund's
exposure to European government short dated bonds. We remain concerned over the
extent to which the market will discount higher rates and see the potential that
the market might overreact and factor in more than a single rise in official
interest rates. We lessened the Fund's duration given the risk that markets will
begin to price in too-aggressive rate hikes.
Elsewhere, value remains in short dated government fixed income assets. In the
U.S. and the UK the level of yields and the greater degree of clarity over
central bank policy supports our strategy for a long position in short dated
bonds. In addition, the valuation levels of U.S. agency mortgages (which we
believe have a strong, implicit, guarantee from the U.S. Treasury) offer in
excess of 2% more yield than that of a U.S. Treasury, and therefore represent a
significant investment opportunity. We have recently increased the Fund's
allocation from 30% to 35% to this sector.
OUTLOOK
Economic data is expected to decline from current levels both in the U.S. and
Europe as consumption weakens and exports slow. The housing sector remains a key
focus and here we have already seen a sharp decline in values.
Furthermore, employment levels are expected to fall as companies' margins are
squeezed by slower consumption and higher prices, primarily from higher energy
costs.
We expect yields to decline significantly in the developed markets particularly
in shorter-dated bonds. We expect yield curves to steepen as rate cuts are
discounted as data weakens and 2-year and 5-year bonds attract significant
flows. We believe credit markets will remain under pressure in the near-term,
particularly in Europe. However, as we move through the year, we anticipate a
significant opportunity to buy credit, given the significant underperformance of
this major sector.
22
SCHRODER STRATEGIC BOND FUND
PERFORMANCE INFORMATION
One Year Ended Annualized
April 30, 2008 Since Inception (a)
-------------- -------------------
Schroder Strategic Bond Fund --
Investor Shares ....................... 2.85% 4.00%
Advisor Shares ........................ 2.70% 3.82%
(a) From commencement of Fund operations on June 30, 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
- -------- ----------------
U.S. Treasury Note 5.125%, 5/15/16 13.3%
Government of France 4.750%, 10/25/12 11.7
Bundesrepublik Deutschland 4.500%, 1/04/13 11.2
Swedish Government 5.500%, 10/08/12 6.6
FHLMC Gold 5.000%, 5/01/37 5.9
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ------ ----------------
Foreign Bonds 42.1%
U.S. Government Mortgage-Backed Obligations 26.6
U.S. Treasury Obligations 14.9
Corporate Obligations 7.2
Commercial Paper 2.5
Collateralized Mortgage Obligation 1.8
Mortgage-Backed Obligations 0.8
Short-Term Investment 4.1
23
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
PERFORMANCE
The Schroder Multi-Asset Growth Portfolio (the "Fund") commenced investment
operations on December 20, 2007. In the period from inception through April 30,
2008, the Fund returned 0.90% (Investor Shares) and 0.80% (Advisor, Class A, and
Class R Shares) compared to the Consumer Price Index ("CPI" or "the Index",
specifically, the CPI for All Urban Consumers) which rose by 2.26%. For the same
period, the MSCI World Index, a market-weighted index designed to measure the
equity market performance of developed markets, declined by 2.28%.
The Fund's real return shortfall was primarily due to its positions in equity
investments during an exceptionally weak first quarter for equity markets
worldwide. However, the Fund's relatively underweight position in equities
helped it outperform both equity markets (as measured by the S&P 500 Index,
which declined 5.38% during the same period from December 20, 2007 to April 30,
2008) and a peer-group average during this period. The Fund also met its risk
objective of maintaining significantly lower volatility than an equity
portfolio, as annualized volatility from inception to April 30 was 10.34% versus
18.81% for the MSCI World Index and 22.38% for the S&P 500 Index. While we
target real returns and examine performance against a benchmark of inflation,
comparing the Fund against the MSCI World index highlights our objective of
delivering returns comparable to equities but with less volatility.
MARKET BACKGROUND
Increasing concerns over the slowing global economy and the ongoing problems in
credit markets have created significant amounts of volatility, making the last
six months a difficult period for most global equity and credit markets.
Following the collapse of the U.S. subprime mortgage market in 2007, lack of
liquidity in credit markets reflected fears of further bank losses, prompting
banks to retain cash rather than lend it on the wholesale money markets. As the
months went on, investor concerns were further fuelled by several major U.S.
banks announcing write-downs to the tune of billions of dollars. Central banks
acted together in an attempt to ease financial market stress, with the U.S.
Federal Reserve cutting rates aggressively during the last six months. Not
surprisingly, risk aversion remained high and consequently, most risk assets
underperformed, whilst government bonds outperformed over the period.
We believe these recent market falls demonstrate the importance of including
alternative assets within the growth-orientated portfolio. For instance,
commodities prices continued to climb higher, with crude oil pushing well over
$100 per barrel. Increasing food prices regularly made the headlines as
demand/supply pressures mounted. Elsewhere, select emerging market currencies
performed well, strengthening against the U.S. dollar.
PORTFOLIO REVIEW
We expect a long period of fairly loose monetary and fiscal policy in
Organization for Economic Cooperation and Development ("OECD") countries facing
diminishing growth prospects, and rather tighter policy in developing nations
more challenged by inflation. However, the two could come into conflict as
Federal Reserve policy exacerbates pressures in emerging markets and
commodities. Furthermore, most emerging economies have not yet sufficiently
addressed their inflation problems and as a result are offering negative real
interest rates.
As a result, we remain underweight risk assets such as equities; although
valuations are attractive versus cash and bonds, this will provide little
defense as the economic slowdown increasingly weighs upon corporate earnings.
The Fund intends to begin to increase equity weightings when economic stability
brings more earnings visibility and a truer picture of valuation multiples
highlights attractive value opportunities ahead of a broader economic
turnaround.
Among the Fund's investments in alternative asset classes, positions in
commodities proved very beneficial during this period as energy and food
commodity prices rose sharply. Global bonds, emerging market debt, and
infrastructure investments added modest real returns, while property and private
equity investments were mild detractors from performance.
Since the inception of the Fund, we have gradually reduced our allocation to
equities to a low of 38%. Within U.S. equities, passive exposures to the Dow
Jones Industrials Index, the S&P 500 Index and the Russell 1000 Growth Index
were trimmed and European and Asian equity exposure increased. Assets were also
reduced in Japanese and EAFE equity passive vehicles and added to the
ALLIANCEBERNSTEIN GLOBAL RESEARCH GROWTH FUND.
24
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2008)
Assets allocated to fixed income were steadily increased early in 2008, as we
built positions in SCHRODER STRATEGIC BOND FUND, PIMCO DEVELOPING LOCAL MARKETS
DEBT FUND and GOLDMAN SACHS GLOBAL HIGH YIELD FUND to take advantage of more
attractive risk-adjusted yields and emerging markets currencies.
The Fund's commodities exposure was trimmed to take profits from continued price
strength and then topped up again after short-term weakness, and more funds were
allocated to commercial real estate (especially outside the United States) and
absolute return funds. The private equity position was also reduced as private
equity funds will find leverage terms increasingly onerous in a weak global
environment for credit.
OUTLOOK
The macro backdrop deteriorated further over the reporting period, leading us to
cut our global economic growth forecast, while at the same time increasing our
inflation predictions. We believe that uncertainties over the extent of this
slowdown -- as well as further tensions in the credit markets -- will continue
to weigh on markets and be reflected through continued high levels of volatility
in the shorter term. However, the turbulence has already presented some
interesting opportunities for long-term investors. Sub-investment grade bond
yields are now looking attractive while select equity markets are also offering
value at current levels. Elsewhere, we remain positive on select emerging market
currencies -- particularly those of southeast Asia -- as we anticipate that
policies aimed at curbing inflationary pressures may result in currency
appreciation.
PERFORMANCE INFORMATION
Inception to
April 30, 2008 (a)
------------------
Schroder Multi-Asset Growth Portfolio --
Investor Shares ..................... 0.90%
A Shares ............................ 0.80%
Advisor Shares ...................... 0.80%
R Shares ............................ 0.80%
(a) Cumulative total return from commencement of Fund operations (December 20,
2007). 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*
- -------- -----------------
Schroder U.S. Small and Mid Cap
Opportunities Fund 11.4%
Goldman Sachs High Yield Fund 10.5
PIMCO Developing Local Markets Fund 9.0
PIMCO Commodity RealReturn Strategy Fund 8.6
iShares S&P World ex-U.S. Property
Index Fund 6.1
* Excludes any Short-Term Investments.
25
SCHRODER INTERNATIONAL ALPHA FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
COMMON STOCK - 94.6%
BRAZIL - 2.1%
7,613 Unibanco - Uniao de Bancos Brasileiros GDR 1,107,006
-------------
CANADA - 4.1%
28,438 Cameco 988,791
12,454 Niko Resources 1,125,548
-------------
2,114,339
CHINA - 2.8%
7,500 Ctrip.com International ADR 465,450
1,256,000 Industrial & Commercial Bank of China Class H 994,408
-------------
1,459,858
DENMARK - 1.7%
25,896 Danske Bank 898,508
-------------
FRANCE - 3.9%
27,398 AXA 1,022,511
14,019 Suez 995,839
-------------
2,018,350
GERMANY - 7.0%
11,345 Adidas 726,011
3,943 E.ON 804,630
6,975 Linde 1,024,694
9,249 Siemens 1,091,201
-------------
3,646,536
GREECE - 2.3%
37,898 EFG Eurobank Ergasias 1,176,232
-------------
HONG KONG - 7.1%
422,000 China Unicom 914,060
1,874,000 Denway Motors 954,662
338,000 Shangri-La Asia 936,829
78,000 Swire Pacific Class A 912,307
-------------
3,717,858
ISRAEL - 4.7%
130,894 Makhteshim-Agan Industries 1,205,985
26,125 Teva Pharmaceutical Industries ADR 1,222,128
-------------
2,428,113
ITALY - 2.0%
137,760 Intesa Sanpaolo 1,032,883
-------------
JAPAN - 12.8%
111 Central Japan Railway 1,088,863
31,100 Honda Motor 987,017
34,400 Mitsubishi 1,104,982
114,000 Sekisui Chemical 829,948
23,700 Square Enix 772,677
162,000 Toray Industries 1,009,579
44,900 Ushio 849,810
-------------
6,642,876
Shares Value $
- --------- -------------
LUXEMBOURG - 2.8%
16,429 ArcelorMittal 1,456,867
-------------
MEXICO - 1.8%
314,009 America Movil 908,418
-------------
NETHERLANDS - 4.3%
22,116 Koninklijke Philips Electronics 833,843
37,000 SBM Offshore 1,418,700
-------------
2,252,543
NORWAY - 2.1%
53,495 Telenor 1,082,937
-------------
SINGAPORE - 3.7%
60,784 Jardine Strategic Holdings 1,053,995
195,000 Keppel Land 871,460
-------------
1,925,455
SOUTH KOREA - 2.5%
29,869 Daewoo Shipbuilding & Marine Engineering 1,299,882
-------------
SWITZERLAND - 8.7%
2,333 Nestle 1,119,101
8,338 Roche Holding 1,390,606
66,644 STMicroelectronics 783,460
4,204 Syngenta 1,255,803
-------------
4,548,970
UNITED KINGDOM - 18.2%
57,655 Admiral Group 998,320
83,223 Barclays 755,264
141,878 Rexam 1,262,890
11,633 Rio Tinto 1,366,997
92,891 Rolls-Royce Group 810,686
238,492 Sage Group 937,810
129,251 Tesco 1,102,316
84,737 Venture Production 1,249,947
81,745 WPP Group 1,005,115
-------------
9,489,345
-------------
TOTAL COMMON STOCK
(Cost $48,207,611) 49,206,976
-------------
EQUITY-LINKED WARRANTS (1) (2) - 3.8%
INDIA - 3.8%
204,163 Infrastructure Development
Finance Company,
Expires 08/04/08 896,275
136,608 Shriram Transport Finance,
Expires 01/18/13 1,088,766
-------------
TOTAL EQUITY-LINKED WARRANTS
(Cost $2,140,102) 1,985,041
-------------
The accompanying notes are an integral part of the financial statements.
26
SCHRODER INTERNATIONAL ALPHA FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
SHORT-TERM INVESTMENT - 2.1%
1,080,004 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $1,080,004) 1,080,004
-------------
TOTAL INVESTMENTS - 100.5%
(Cost $51,427,717) 52,272,021
-------------
OTHER ASSETS LESS LIABILITIES - (0.5)% (239,555)
-------------
NET ASSETS - 100.0% $ 52,032,466
=============
(1) Securities are not readily marketable.
(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, 2008, the value of these
securities amounted to $1,985,041, representing 3.8% of the net assets of
the Fund.
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
27
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
COMMON STOCK - 95.8%
AUSTRALIA - 4.7%
17,316 Abacus Property Group 22,539
1,505 Allco Finance Group 1,490
6,605 Aspen Group 9,345
3,670 Ausdrill 6,629
4,387 Boral 25,737
2,169 Caltex Australia 24,591
10,757 Centro Retail Group 4,870
2,895 Challenger Financial Services Group 5,680
1,973 City Pacific 1,507
28,723 Commonwealth Property Office Fund 38,199
8,799 CSR 26,226
20,282 Goodman Fielder 34,243
6,051 Hastings Diversified Utilities Fund 14,839
16,808 ING Industrial Fund 33,133
19,042 ING Office Fund 25,055
15,567 Macquarie CountryWide Trust 20,336
14,897 Macquarie DDR Trust 8,150
36,636 Macquarie Office Trust 35,592
2,959 McPherson's 7,033
5,535 Mirvac Group 21,927
4,452 Mirvac Real Estate Investment Trust 4,136
11,656 Pacific Brands 21,713
2,095 PaperlinX 4,999
1,841 Port Bouvard 1,389
7,963 Qantas Airways 25,536
7,064 Ridley 7,262
10,664 Rubicon America Trust 2,012
1,124 Santos 16,846
20,070 SP Telemedia 6,531
992 Spotless Group 2,947
128 Stockland 871
11,231 Telstra 48,304
6,945 Thakral Holdings Group 5,535
1,554 Timbercorp 1,583
7,449 Tishman Speyer Office Fund 11,382
15,487 Valad Property Group 13,950
2,028 Westfield Group 34,890
3,245 Zinifex 30,913
-------------
607,920
AUSTRIA - 0.9%
159 Agrana Beteiligungs 16,977
46 A-TEC Industries 3,842
309 Austria Technologie & Systemtechnik 4,921
587 OMV 44,401
2,101 Telekom Austria 51,989
-------------
122,130
Shares Value $
- --------- -------------
BELGIUM - 3.1%
1,221 Belgacom 56,529
70 Cofinimmo REIT 15,044
545 Delhaize Group 47,512
1,843 Dexia 51,446
1,113 Euronav 45,873
1,212 Fortis 33,113
136 Intervest Offices REIT 5,782
298 KBC Groep 40,541
615 Mobistar 55,045
46 Retail Estates 2,980
205 Solvay 30,219
321 Tessenderlo Chemie 15,130
66 Wereldhave Belgium 5,474
-------------
404,688
BERMUDA - 0.9%
2,610 Catlin Group 20,365
950 Frontline 52,933
4,920 Hiscox 25,015
3,533 Lancashire Holdings 21,422
-------------
119,735
BRAZIL - 1.3%
600 Banco Nossa Caixa 9,170
500 Brasil Telecom Participacoes ADR 37,805
1,100 Braskem ADR 18,414
800 CPFL Energia 19,808
1,000 EDP - Energias do Brasil 16,943
1,100 Telecomunicacoes de Sao Paulo ADR 29,172
1,400 Telegraph Norte Leste Participacoes ADR 32,074
-------------
163,386
BRITISH VIRGIN ISLANDS - 0.0%
5,357 Livermore Investments Group 3,195
-------------
CANADA - 6.6%
300 AltaGas Income Trust 7,210
3,400 Amerigo Resources 7,294
400 Atco Class I 18,838
981 Baytex Energy Trust 24,672
1,400 BCE 51,167
1,600 Bell Aliant Regional Communications 47,830
1,700 Biovail 19,450
900 Bonavista Energy Trust 27,637
1,100 Emera 23,433
900 Empire Class A 33,322
1,233 Enerplus Resources Fund 55,335
1,442 GAZ Metro LP 21,482
2,040 Gerdau Ameristeel 31,844
1,000 InnVest REIT 9,554
600 Laurentian Bank of Canada 25,153
The accompanying notes are an integral part of the financial statements.
28
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
300 Magna International Class A 22,122
600 Manitoba Telecom Services 23,776
1,700 Methanex 39,676
1,500 Mullen Group Income Fund 29,437
800 Northbridge Financial 27,610
718 Parkland Income Fund 8,906
1,000 Power Corp. of Canada 35,078
1,300 Precision Drilling Trust 32,536
1,900 Progress Energy Trust 26,512
1,400 Provident Energy Trust 15,155
600 Quebecor World (1) 125
1,100 Rothmans 27,170
2,200 Superior Plus Income Fund 29,540
1,100 TELUS 50,603
1,600 Total Energy Services Trust 14,460
1,400 TransForce Income Fund 10,609
1,200 Trinidad Drilling 15,279
700 Vermilion Energy Trust 27,579
700 Vicwest Income Fund 6,952
900 Yellow Pages Income Fund 9,805
-------------
857,151
CHILE - 0.1%
200 Administradora de Fondos de
Pensiones Provida ADR 7,502
-------------
CHINA - 0.4%
24,000 People's Food Holdings 19,469
16,000 PetroChina Class H 23,816
4,500 Weiqiao Textile Class H 5,382
-------------
48,667
DENMARK - 0.5%
150 Amagerbanken 6,233
1,050 D/S Torm 34,508
300 TrygVesta 25,811
-------------
66,552
FINLAND - 1.8%
435 Atria Group 9,515
1,430 Huhtamaki 15,538
400 Kesko B Shares 15,194
38 Lemminkainen 2,056
1,514 Neste Oil 45,973
1,254 Outokumpu 60,005
1,242 PKC Group 15,105
600 Rautaruukki 28,626
2,248 Stora Enso Class R Shares 27,936
905 UPM Kymmene 17,548
-------------
237,496
FRANCE - 7.2%
1,300 Air France-KLM 40,531
1,241 AXA 46,315
486 BNP Paribas 52,543
588 Bouygues 44,082
Shares Value $
- --------- -------------
462 CNP Assurances 54,961
138 Compagnie Plastic Omnium 4,912
1,815 Credit Agricole 61,347
201 Esso Ste Anonyme Francaise 50,626
139 Euler Hermes 16,091
200 Fonciere Des Regions (1) 30,506
1,617 France Telecom 50,893
361 Groupe Steria SCA 12,495
2,836 Natixis 47,862
133 Nexans 17,716
463 Nexity 20,782
479 Peugeot 33,637
254 Pierre & Vacances 27,917
478 Rallye 36,365
403 Renault 41,557
1,864 Rexel (1) 30,352
677 Sanofi-Aventis 53,005
1 Societe Generale 117
169 Ste Industrielle d'Aviation Latecoere 3,681
659 Thomson 4,218
719 TOTAL 60,548
39 Total Gabon 27,027
949 Valeo 38,566
824 Vivendi 33,537
-------------
942,189
GERMANY - 7.0%
187 Allianz 38,224
48 Allianz (France) 9,554
220 AMB Generali Holding 40,347
365 BASF 52,226
765 Bayerische Motoren Werke 42,100
61 Boewe Systec 2,319
612 Commerzbank 22,262
525 DaimlerChrysler 40,924
440 Deutsche Bank 52,873
269 Deutsche Beteiligungs 6,682
2,001 Deutsche Lufthansa 52,701
1,416 Deutsche Post 44,280
2,495 Deutsche Telekom 44,951
287 E.ON 58,567
926 Hannover Rueckversicherung 50,541
268 HCI Capital 5,912
566 Heidelberger Druckmaschinen 13,520
1,253 Hypo Real Estate Holding 46,988
906 IKB Deutsche Industriebank 6,266
455 Indus Holding 16,160
286 Kloeckner 15,820
285 Koenig & Bauer 9,357
848 Leoni 45,436
130 MPC Muenchmeyer Petersen Capital 8,930
269 Muenchener Rueckversicherungs 52,185
573 Norddeutsche Affinerie 24,261
The accompanying notes are an integral part of the financial statements.
29
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
383 RWE 44,212
125 Schlott Gruppe 2,997
256 Sixt 12,486
691 ThyssenKrupp 43,400
-------------
906,481
GREECE - 0.4%
1,253 Hellenic Petroleum 19,014
3,489 Marfin Investment Group (1) 30,939
-------------
49,953
GUERNSEY - 0.2%
5,219 ISIS Property Trust 2 10,375
393 Mapeley 9,946
-------------
20,321
HONG KONG - 2.3%
18,000 Asia Financial Holdings 8,638
14,000 CCT Telecom Holdings 2,066
23,000 Champion REIT 11,805
66,822 Champion Technology Holdings (1) 10,547
3,000 CLP Holdings 23,790
30,000 Cnpc Hong Kong 14,436
16,000 Fountain SET Holdings 2,525
4,000 Guoco Group 42,884
30,000 Hung Hing Printing Group (2) (3) 9,527
22,000 Lerado Group Holdings 2,033
5,500 Orient Overseas International 30,242
58,000 Pacific Andes International Holdings 10,196
29,000 Pacific Century Premium
Developments 10,903
2,781 Prosperity Minerals Holdings 7,602
18,000 Public Financial Holdings 16,492
43,000 Samson Holding 6,897
24,000 Silver Grant International 4,435
30,000 SIM Technology Group 3,426
48,000 Sinolink Worldwide Holdings 8,438
90,000 Solomon Systech International (1) 5,197
21,000 Sunlight Real Estate Investment Trust 5,982
14,000 TPV Technology 9,737
4,400 Transport International Holdings 23,713
5,000 Varitronix International 3,362
18,000 Victory City International Holdings 5,289
3,000 VTech Holdings 16,457
16,000 Xiwang Sugar Holdings 6,426
-------------
303,045
HUNGARY - 0.3%
5,413 Magyar Telekom
Telecommunications 28,948
38 MOL Hungarian Oil & Gas 5,440
-------------
34,388
IRELAND - 0.8%
1,501 Bank of Ireland 20,973
2,733 C&C Group 18,774
Shares Value $
- --------- -------------
753 FBD Holdings 29,989
1,959 Irish Life & Permanent 31,456
5,133 McInerney Holdings 7,052
-------------
108,244
ISRAEL - 1.2%
3,959 Bank Hapoalim 16,785
4,582 Bank Leumi Le-Israel 22,789
15,580 Bezeq Israeli Telecommunication 28,905
573 Blue Square-Israel 5,556
80 Delek Group 13,846
413 IDB Development 11,732
361 IDB Holding 9,636
5,619 Migdal Insurance & Financial Holding 8,593
1,840 Mizrahi Tefahot Bank 15,398
743 Partner Communications 17,460
-------------
150,700
ITALY - 4.9%
3,453 Banca Popolare di Milano 42,722
291 Banco di Sardegna 6,810
1,667 Banco Popolare (1) 33,234
2,182 Caltagirone 17,697
8,978 Cofide 9,812
5,016 Enel 54,739
1,487 ENI 57,434
1,754 ERGO Previdenza 11,392
1,078 Fondiaria 43,556
3,269 GreenergyCapital (1) 54
802 Indesit 9,704
7,679 Intesa Sanpaolo 57,575
204 Italmobiliare 19,463
3,269 KME Group 5,318
1,516 Mediolanum 9,165
1,746 Milano Assicurazioni 11,455
9,553 Pirelli & C 7,830
171 Pirelli & C Real Estate 5,185
6,859 Premuda 14,135
51,939 Seat Pagine Gialle 10,079
23,910 Telecom Italia 50,468
8,195 Terna Rete Elettrica Nazionale 36,335
3,277 UniCredit 24,966
1,861 Unione di Banche Italiane 49,334
13,810 Unipol 45,331
-------------
633,793
JAPAN - 12.7%
3,000 Ando 4,559
700 AOC Holdings 7,479
3,000 Arnest One 9,954
9 Asset Managers 5,410
700 Belluna 6,490
1,000 Central Finance 2,866
500 Century Leasing System 4,140
The accompanying notes are an integral part of the financial statements.
30
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
4,000 Chuo Mitsui Trust Holdings 28,429
2,000 Commuture 9,829
700 Computer Engineering & Consulting 6,281
4 Creed Office Investment 9,502
12 C's Create 1,685
1 DA Office Investment 3,933
1,000 Daiki Aluminium Industry 3,703
8,000 Daikyo 18,157
4,000 Dainippon Screen Manufacturing 17,388
1,000 Daio Paper 6,915
1,000 Denki Kogyo 6,097
44 Dynacity 1,039
1,400 Eisai 49,548
500 Excel 5,972
13 Fintech Global 1,875
600 Fuji 1,921
9,000 Fuji Heavy Industries 38,604
1,200 Fujikura Rubber 4,916
4,000 Furukawa-Sky Aluminum 8,579
600 Furusato Industries 5,672
500 Fuyo General Lease 15,484
8 Geo 6,678
2,000 Godo Steel 7,213
2 Grandy House 496
360 Gulliver International 12,949
600 Hakuto 6,128
2,000 Hanwa 10,329
1,000 Harima Chemicals 4,972
1,500 Hitachi Capital 22,173
1,600 Honda Motor 50,779
12 Hoosiers 4,282
4,000 Ichiken 8,617
5 ITC Networks 9,665
2,400 Itochu Enex 14,334
900 Japan Electronic Materials 7,600
800 Japan General Estate 7,555
3 Japan Hotel and Resort 10,012
800 Japan Securities Finance 6,647
700 JBCC Holdings 5,116
700 Joint 5,264
4 Joint REIT Investment 10,656
600 Kaga Electronics 7,871
2,000 Kanamoto 12,214
2,000 Kasai Kogyo 6,501
1,000 Keihanshin Real Estate 5,116
700 Koa 6,160
700 Kojima 3,528
5,000 Kyodo Shiryo 6,251
200 Kyoshin Technosonic 1,337
600 Marubun 3,526
1,100 Marusan Securities 7,098
1,000 Meiwa Estate 7,463
1,000 Mikuni 2,751
9,000 Mitsubishi Rayon 29,256
44 Mitsui Knowledge Industry 8,209
Shares Value $
- --------- -------------
600 Muto Seiko 4,403
1,100 NAC 8,315
300 Nafco 4,602
3,000 Nakayama Steel Works 6,318
700 NEC Leasing 8,772
600 NEC Mobiling 8,713
1,000 New Japan Radio 3,712
3,000 Nihon Yamamura Glass 6,261
4,000 Nippon Chemi Con 15,849
1,000 Nippon Denwa Shisetsu 2,577
3,000 Nippon Formula Feed Manufacturing 3,520
3,000 Nippon Light Metal 4,559
6,000 Nippon Mining Holdings 37,103
15 Nippon Paper Group 37,363
5 Nippon Residential Investment 16,157
3,000 Nippon Steel Trading 8,338
12 Nippon Telegraph & Telephone 51,702
5,000 Nissan Motor 44,335
2,000 Nissan Shatai 14,791
1,300 Nissho Electronics 7,351
6,000 Nissin Sugar Manufacturing 13,387
700 Nittan Valve 3,501
30 NTT DoCoMo 44,143
2,000 Okamoto Machine Tool Works 4,866
5 Okinawa Cellular Telephone 8,655
3,000 OKK 6,319
1,000 Oriental Yeast 5,155
400 Osaka Steel 5,474
600 Otsuka Kagu 8,050
2,000 Pacific Industrial 7,828
1,000 Pacific Metals 9,771
400 Plenus 4,855
500 Ricoh Leasing 9,954
5,000 Ryobi 18,850
2,000 Ryoden Trading 12,868
3,000 San-Ai Oil 11,973
100 Sanei-International 1,733
1,200 Sanoh Industrial 7,224
4,000 Sanwa Holdings 16,619
900 Sato Shoji 6,405
500 SES 1,596
13 Shidax 6,964
600 Shinhokoku Steel 2,481
900 Shinko Shoji (1) 9,703
3,000 Shonai Bank 7,271
3,400 Showa Shell Sekiyu 35,838
500 Shuei Yobiko 2,558
3,300 Sojitz 12,695
6,000 Sumikin Bussan 22,735
8,000 Sumitomo Light Metal Industries 10,156
8 Tact Home 3,316
4,000 Taihei Kogyo 14,887
1,100 Taiho Kogyo 14,017
13,000 Taisei 34,382
The accompanying notes are an integral part of the financial statements.
31
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
400 Takachiho Electric 4,543
11 Take & Give Needs 1,191
700 Takeda Pharmaceutical 36,959
4,000 Takisawa Machine Tool 6,040
2,000 TBK 8,790
400 Tohoku Electric Power 9,079
2,000 Tokai 9,021
1,000 Tokai Lease 1,625
5,000 Tokai Tokyo Securities 20,292
1,100 Tokyo Electric Power 27,981
7,000 Tokyo Gas 26,794
4,000 Tomoku 7,001
5,000 Tonichi Carlife Group 5,578
1,000 Toppan Printing 11,118
3,000 Toshiba TEC 20,946
3,000 Tosho Printing 7,386
1,400 Toyo Machinery & Metal 5,251
1,700 Toyota Auto Body 34,007
400 Toyota Motor 20,273
1,000 Trinity Industrial 5,607
1,700 Unipres 17,069
200 USC 2,654
1,000 Yachiyo Industry 12,695
1,800 Yamaha Motor 34,709
4,000 Yokohama Rubber 20,465
300 Yorozu 4,334
14 Zephyr 6,436
-------------
1,653,987
LIECHTENSTEIN - 0.1%
225 Liechtenstein Landesbank 19,642
-------------
MALAYSIA - 0.7%
8,400 Hong Leong Financial Group 13,246
5,300 Lingui Development 2,870
3,100 MNRB Holdings 4,790
7,800 OSK Holdings 5,113
9,700 Padiberas Nasional 6,573
6,200 Petronas Dagangan 16,197
4,000 Shell Refining 14,693
2,000 Telekom Malaysia 2,293
14,000 Titan Chemicals 5,630
2,000 TM International (1) 4,528
4,400 WTK Holdings 3,678
15,080 YTL Power International 12,368
-------------
91,979
MEXICO - 0.6%
1,600 Alfa Class A 11,213
9,700 Embotelladoras Arca 36,997
3,800 Gruma, Class B 10,468
7,500 Grupo Continental 18,422
-------------
77,100
Shares Value $
- --------- -------------
NETHERLANDS - 4.5%
2,705 Aegon 43,603
1,247 Corporate Express 14,387
863 Grontmij 33,077
1,040 Heineken Holding 53,581
325 Hunter Douglas 20,296
1,502 ING Groep 57,474
253 KAS Bank 10,704
447 Koninklijke 24,167
461 Nieuwe Steen Investments Funds 13,394
2,430 OCE 36,686
1,363 Royal Dutch Shell A Shares 54,951
1,419 Royal Dutch Shell B Shares 56,842
2,886 Royal KPN 53,099
2,249 SNS Reaal 47,576
521 USG People 12,103
446 Vastned Offices/Industrial 14,699
235 Vastned Retail REIT 23,855
447 Wavin 5,534
105 Wereldhave 13,370
-------------
589,398
NEW ZEALAND - 0.4%
13,439 Air New Zealand 13,125
2,955 Fisher & Paykel Appliances
Holdings 5,587
1,497 Fletcher Building 10,024
7,801 ING Property Trust 5,607
1,239 New Zealand Refining 7,647
1,780 Steel & Tube Holdings 4,242
2,607 Telecom Corp. of New Zealand 7,699
-------------
53,931
NORWAY - 2.6%
9,000 ABG Sundal Collier 14,310
800 Acta Holding 2,893
640 Aker A Shares 35,472
1,900 BW Gas (1) 16,431
1,500 Cermaq 17,320
1,900 DnB NOR 28,492
900 Leroy Seafood Group 19,104
2,066 Sparebank 1 SR Bank 20,506
2,400 Sparebanken Midt-Norge 24,410
350 Sparebanken More 15,753
500 Sparebanken Nord-Norge 9,237
1,607 Statoil 58,273
1,600 Storebrand 15,236
2,000 Telenor 40,487
2,200 Veidekke 19,890
-------------
337,814
PHILIPPINES - 0.4%
10,700 First Gen 9,001
6,500 First Philippine Holdings 6,238
400 Globe Telecom 12,891
The accompanying notes are an integral part of the financial statements.
32
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- --------- -------------
200 Philippine Long Distance
Telephone ADR 12,220
24,400 Universal Robina 8,095
-------------
48,445
POLAND - 0.6%
214 Bank BPH 8,637
510 KGHM Polska Miedz 23,702
4,052 Telekomunikacja Polska 40,929
-------------
73,268
PORTUGAL - 0.6%
3,581 Portugal Telecom 42,629
2,026 Redes Energeticas Nacionais (1) 10,833
1,886 Semapa-Sociedade de Investimento
e Gestao 26,500
-------------
79,962
RUSSIA - 0.0%
48 LUKOIL ADR 4,301
-------------
SINGAPORE - 1.4%
9,000 Allco Commercial REIT 5,376
17,000 Beyonics Technology 3,134
28,000 Fortune Real Estate Investment
Trust 17,893
8,000 HTL International Holdings 2,124
18,000 Jurong Technologies Industrial 4,115
52,000 K1 Ventures 7,861
8,000 Kim Eng Holdings 12,979
26,800 MobileOne 38,540
3,733 Singapore Airlines 44,047
6,000 Singapore Petroleum 31,858
8,000 Suntec Real Estate Investment Trust 8,909
2,000 Wing Tai Holdings 2,965
-------------
179,801
SOUTH AFRICA - 0.6%
481 Astral Foods 6,503
1,003 JD Group 4,700
1,227 Liberty Group 11,636
449 Liberty Holdings 10,950
6,245 Metropolitan Holdings 10,926
4,750 Nampak 10,388
219 Nedbank Group 3,323
1,129 Telkom 19,236
-------------
77,662
SOUTH KOREA - 2.3%
160 Cambridge Members 2,616
660 Chokwang Paint 1,849
200 Dae Won Kang Up (2)(3) 4,112
121 GS Home Shopping 7,878
1,120 Hanil E Wha 2,535
210 Husteel 4,041
190 Hyundai Motor 16,026
Shares Value $
- --------- -------------
160 INTOPS 4,116
190 Kolon Engineering & Construction 2,160
112 Kookmin Bank 7,805
160 Korea Development 2,576
810 Korea Electric Power 27,256
700 Korea Exchange Bank 10,643
90 Korean Petrochemical Industries 4,159
1,200 KT ADR 27,744
1,010 KT Freetel (1) 27,893
650 LG Dacom 12,313
820 LG Telecom 7,301
86 Nong Shim Holdings 6,062
270 Poongsan 4,832
210 Pusan City Gas 4,774
240 Samwhan 5,360
49 SeAH Holdings 4,934
2,500 Seowon 2,817
220 SK Energy 26,979
109 SK Gas 6,955
1,200 SK Telecom ADR 27,084
580 SL 4,510
399 S-Oil 26,931
1,020 Tae Kyung Industrial 4,373
250 Woori Finance Holdings 4,910
-------------
303,544
SPAIN - 1.3%
1,900 Banco Santander Central Hispano 41,083
4,100 Mapfre 20,931
1,285 Repsol 52,240
1,801 Telefonica 52,214
-------------
166,468
SWEDEN - 3.6%
750 Axfood 24,251
1,800 BE Group 20,378
600 Bilia A Shares 6,367
1,950 Boliden (1) 21,262
2,300 Brostrom B Shares 15,873
1,000 D Carnegie 12,909
2,000 Electrolux Series B 30,747
1,700 Fabege 15,979
600 Haldex 11,380
300 Holmen B Shares 9,625
900 KappAhl Holding 7,820
2,500 Klovern 9,775
2,200 Kungsleden 22,057
1,300 NCC B Shares 25,036
1,400 Ratos B Shares 49,011
900 Svenska Cellulosa B Shares 15,189
23,000 Telefonaktiebolaget LM Ericsson 58,726
7,000 TeliaSonera 62,579
800 Trelleborg B Shares 15,306
2,500 Volvo A Shares 37,702
-------------
471,972
The accompanying notes are an integral part of the financial statements.
33
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
SWITZERLAND - 2.3%
119 Baloise Holding 13,059
190 Basler Kantonalbank 21,125
144 Bellevue Group 9,034
554 Ciba Specialty Chemicals 18,490
391 Credit Suisse Group 21,774
32 Georg Fischer 17,543
32 Helvetia Holding 13,435
15 Schweizerische National-
Versicherungs-Gesellschaft 12,081
120 Swiss Life Holding 35,962
524 Swiss Reinsurance 43,696
138 Swisscom 49,281
70 Valora Holding 17,566
102 Zurich Financial Services 31,232
-------------
304,278
TAIWAN - 2.7%
750 China Steel 1,232
600 Chunghwa Telecom ADR 15,306
2,000 Compal Communications 3,600
30,150 Compal Electronics 33,726
9,100 Coretronic 11,749
7,000 Dah San Electric Wire & Cable 3,564
880 Eclat Textile 503
18,582 Far EasTone Telecommunications 31,743
11,000 First Insurance 6,324
12,000 Hung Sheng Construction 12,832
14,000 Inotera Memories 12,349
20,000 Inventec 12,582
10,000 Lite-On Technology 11,761
7,000 Marketech International 4,438
3,000 Mirle Automation 4,041
15,109 Mitac International 13,501
34,599 Nanya Technology 22,164
11,218 POU Chen 11,756
45,040 Powerchip Semiconductor 18,495
3,000 Promate Electronic 3,075
32,000 ProMOS Technologies 8,568
16,000 Quanta Computer 26,649
9,000 Sheng Yu Steel 8,752
16,000 Sinon 9,461
5,000 Sunplus Technology 6,685
4,000 Unitech Printed Circuit Board 3,666
16,000 Universal Scientific Industrial 10,092
25,000 Walsin Lihwa 12,648
8,000 Walsin Technology 6,058
11,000 Weikeng Industrial 7,553
7,000 WT Microelectronics 8,348
20,000 Yieh Phui Enterprise (1) 9,395
-------------
352,616
THAILAND - 1.0%
36,800 CalComp Electronics Thailand 6,792
8,000 Hana Microelectronics 4,417
Shares Value $
- ------------ -------------
96,400 IRPC 17,641
20,900 MCS Steel 2,413
3,800 Padaeng Industry 3,747
5,100 Precious Shipping 3,926
2,600 PTT 27,399
4,400 Regional Container Lines 3,276
1,600 Siam Cement 10,904
3,600 Thai Airways International 3,124
10,900 Thai Oil 24,417
11,800 Thai Plastic & Chemical 8,861
16,500 Thai Union Frozen Products 10,099
5,900 Thanachart Capital 3,146
-------------
130,162
TURKEY - 0.5%
1,700 Aksa Akrilik Kimya 2,894
2,011 Bolu Cimento 2,540
1,120 Componenta Doktas Dokumculuk
Ticaret ve Sanayi A.S. (1) 3,146
1,178 Ford Otomotiv 11,091
922 Mardin Cimento Sanayii 4,521
218 Mardin Cimento Sanayii (1) 898
1,695 Sarkuysan Elektrolitik Bakir 3,670
794 Tupras Turkiye Petrol Rafine 21,492
6,500 Turkiye Vakiflar Bankasi Tao 13,259
-------------
63,511
UNITED KINGDOM - 12.3%
950 Acal 3,078
3,046 Acertec 2,059
2,246 Alliance & Leicester 23,084
2,359 Antofagasta 37,635
2,273 Armor Group International 3,547
1,192 AstraZeneca 50,427
3,710 Aviva 46,428
4,290 Barclays 38,933
1,384 Barratt Developments 7,601
6,061 Beazley Group 17,592
712 Bellway 9,943
5,139 BP 62,422
5,557 Brit Insurance Holdings 27,093
3,846 British Energy Group 58,108
1,388 British Land 23,206
920 British Polythene Industries 4,792
10,525 BT Group 46,607
1,162 Capital & Regional 10,008
9,886 Chaucer Holdings 17,590
2,439 Chesnara 8,097
6,947 Clinton Cards 7,665
1,081 Close Brothers Group 15,000
3,848 Dart Group 2,008
3,788 Davis Service Group 35,826
1,586 Dawson Holdings 2,901
6,055 Debenhams 7,734
3,792 Drax Group 45,382
The accompanying notes are an integral part of the financial statements.
34
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
5,794 DS Smith 15,032
16,747 DSG International 21,807
11,520 Ennstone 6,928
11,047 FKI 19,161
11,188 Friends Provident 26,423
2,255 GlaxoSmithKline 50,254
3,443 HBOS 32,204
6,340 Highway Insurance Holdings 7,562
6,218 Home Retail Group 32,634
2,718 HSBC Holdings 47,523
1,029 Investec 7,364
5,329 Jessops (1) 747
1,666 Johnson Service Group 828
3,183 Johnston Press 7,862
11,027 Kcom Group 10,522
7,722 Kesa Electricals 31,969
81 Kier Group 1,905
9,586 Kingfisher 25,308
2,822 Ladbrokes 18,373
18,146 Legal & General Group 45,778
4,730 Lloyds TSB Group 40,669
5,484 London Scottish Bank 1,145
2,706 Marston's 10,719
4,759 McBride 9,934
4,741 Melrose 15,646
3,467 Millennium & Copthorne Hotels 27,569
238 Mondi 1,900
191 Northgate 2,255
1,338 office2office 4,728
15,332 Old Mutual 39,075
274 Paragon Group 549
10,545 Pendragon 8,228
1,994 Persimmon 22,972
10,473 Premier Foods 26,858
1,335 Redrow 6,847
4,395 Rexam 39,121
7,032 Royal Bank of Scotland Group 48,229
1,536 RPC Group 6,031
1,973 ScS Upholstery 2,304
1,366 Segro 12,526
965 Severn Trent 28,028
11,304 Signet Group 15,450
400 Stolt-Nielsen 8,962
11,098 Taylor Wimpey 28,406
1,931 TDG 8,820
11,659 Tomkins 42,300
665 Travis Perkins 12,817
3,038 TT electronics 7,051
946 United Utilities 13,494
11,512 Vodafone Group 36,686
Shares Value $
- ------------ -------------
2,171 Wolseley 21,903
24,233 Woolworths Group 5,540
4,296 Yell Group 14,177
-------------
1,595,889
-------------
TOTAL COMMON STOCK
(Cost $12,865,768) 12,463,266
-------------
PREFERRED STOCK - 0.9%
BRAZIL - 0.8%
200 Centrais Eletricas de Santa Catarina 5,497
300 Cia Energetica do Ceara 3,610
720 Eletropaulo Metropolitana
Eletricidade de Sao Paulo 16,129
700 Metalurgica Gerdau 36,895
700 Telemar Norte Leste ADR 40,319
-------------
102,450
CHILE - 0.0%
1,269 Embotelladora Andina 3,984
-------------
GERMANY - 0.1%
918 ProSiebenSat.1 Media 14,389
-------------
TOTAL PREFERRED STOCK
(Cost $77,006) 120,823
-------------
RIGHTS - 0.0%
MEXICO - 0.0%
3,800 Gruma, Class B
Expires 05/08/08 (1) 208
-------------
UNITED KINGDOM - 0.0%
3,556 Melrose
Expires 05/16/08 (1) 1,485
-------------
TOTAL RIGHTS
(Cost $--) 1,693
-------------
WARRANTS - 0.0%
HONG KONG - 0.0%
7,509 Champion Technology Holdings
Expires 04/16/09 (1)
(Cost $--) 43
-------------
The accompanying notes are an integral part of the financial statements.
35
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
SHORT-TERM INVESTMENT - 2.4%
305,930 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $305,930) 305,930
-------------
TOTAL INVESTMENTS - 99.1%
(Cost $13,248,704) 12,891,755
-------------
OTHER ASSETS LESS LIABILITIES - 0.9% 112,777
-------------
NET ASSETS - 100.0% $ 13,004,532
=============
(1) Denotes non-income producing security.
(2) Security considered illiquid. On April 30, 2008 the value of these
securities amounted to $13,639 representing 0.1% of the net assets of the
Fund.
(3) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
ADR - American Depositary Receipt
LP - Limited Partnership
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
36
SCHRODER EMERGING MARKET EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
COMMON STOCK - 80.6%
ARGENTINA - 0.5%
8,675 Telecom Argentina ADR (1) 152,333
-------------
BRAZIL - 10.8%
6,900 Banco Bradesco ADR 155,802
2,800 Cia de Bebidas das Americas 182,910
11,625 Cia de Concessoes Rodoviarias 224,176
22,000 Cia Vale do Rio Doce ADR 720,752
11,500 Petroleo Brasileiro ADR 1,162,650
1,400 Telegraph Norte Leste Participacoes 42,202
4,500 Telegraph Norte Leste Participacoes ADR 103,095
3,450 Unibanco - Uniao de Bancos Brasileiros GDR 501,664
3,220 Usinas Siderurgicas de Minas Gerais 159,373
13,500 Weg 161,643
-------------
3,414,267
CHINA - 7.9%
34,000 Angang Steel 84,901
111,000 China Communications Construction 263,787
118,000 China Communications Services (1) 90,850
348,000 China Construction Bank Class H 314,370
56,000 China National Building Material 138,112
36,000 China Shipping Development 120,799
54,000 Dongfeng Motor Group Class H 29,241
129,000 Golden Eagle Retail Group 130,770
116,000 Hidili Industry International
Development (1) 177,131
649,000 Industrial & Commercial Bank of China
Class H 513,830
16,500 Parkson Retail Group 155,513
900 PetroChina ADR 136,026
37,000 Ping An Insurance Group Class H 351,099
-------------
2,506,429
COLOMBIA - 1.1%
21,300 Almacenes Exito GDR (3) 165,181
4,438 BanColombia ADR 177,165
-------------
342,346
HONG KONG - 7.0%
24,000 Beijing Enterprises Holdings 98,703
34,000 China Mengniu Dairy 102,090
66,000 China Mobile 1,135,697
322,000 CNOOC 568,544
372,000 Denway Motors 189,506
252,000 Franshion Properties China (1) 106,710
-------------
2,201,250
HUNGARY - 0.7%
479 MOL Hungarian Oil & Gas 68,569
765 Richter Gedeon 158,812
-------------
227,381
Shares Value $
- ------------ -------------
INDIA - 0.6%
2,239 Infosys Technologies ADR 97,822
700 Reliance Industries GDR (3) 91,700
-------------
189,522
INDONESIA - 1.5%
280,000 Bumi Resources 202,018
743,000 Indofood Sukses Makmur 183,392
85,000 Telekomunikasi Indonesia 81,616
-------------
467,026
ISRAEL - 2.2%
24,302 Israel Discount Bank Class A (1) 58,978
18,026 Makhteshim-Agan Industries 166,082
26,199 Super-Sol 130,229
7,478 Teva Pharmaceutical Industries ADR 349,821
-------------
705,110
MALAYSIA - 2.3%
52,500 Genting 106,397
36,600 Kuala Lumpur Kepong 193,547
246,700 Resorts World 264,042
52,100 Telekom Malaysia 59,722
52,100 TM International (1) 117,959
-------------
741,667
MEXICO - 1.0%
4,202 America Movil ADR, Series L 243,548
20,500 Megacable Holdings (1) 60,400
-------------
303,948
PERU - 0.7%
800 Cia de Minas Buenaventura ADR 50,056
1,200 Credicorp 96,432
600 Southern Copper 68,856
-------------
215,344
PHILIPPINES - 0.4%
2,330 Globe Telecom 75,090
175,200 Robinsons Land 44,630
-------------
119,720
RUSSIA - 12.9%
21 Comstar United
Telesystems GDR (1) 208
6,200 LUKOIL ADR 555,520
1,000 Mechel ADR 145,800
9,900 MMC Norilsk Nickel ADR 267,300
6,000 Mobile Telesystems ADR 465,480
33,993 OAO Gazprom ADR 1,808,428
9,950 Rosneft Oil GDR 97,510
1,272 Sberbank GDR 478,194
6,745 Severstal GDR 165,994
10,710 Surgutneftegaz ADR 50,337
850 Uralkali GDR (1) 45,305
-------------
4,080,076
The accompanying notes are an integral part of the financial statements.
37
SCHRODER EMERGING MARKET EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
SOUTH AFRICA - 2.6%
6,865 Gold Fields 90,989
6,907 Impala Platinum Holdings 281,960
5,113 MTN Group 97,924
5,665 Naspers, N Shares 123,333
17,220 Raubex Group 89,011
11,701 Standard Bank Group 139,576
-------------
822,793
SOUTH KOREA - 17.0%
2,028 Daelim Industrial 273,972
4,266 Daewoo Shipbuilding &
Marine Engineering 185,654
1,379 GS Engineering & Construction 202,794
5,610 Hana Financial Group 253,653
19,220 Hankook Tire 295,103
3,173 Kookmin Bank 221,129
529 Kookmin Bank ADR 36,898
19,170 Korea Exchange Bank 291,468
3,696 KT&G 305,850
2,651 LG Chem 264,307
2,889 LG Electronics 450,776
296 MegaStudy 97,683
1,418 Modetour Network 50,188
927 POSCO 453,334
691 Samsung Electronics 489,832
1,408 Samsung Electronics GDR (3) 501,248
1,094 Samsung Fire & Marine Insurance 238,869
524 Shinsegae 339,581
1,329 SK Energy 162,978
1,216 SK Telecom 246,110
-------------
5,361,427
TAIWAN - 5.8%
9,219 Cathay Financial Holding GDR 258,880
10,014 Chunghwa Telecom ADR 255,457
42,056 HON HAI Precision Industry GDR 487,584
22,600 Siliconware Precision Industries ADR 183,964
58,417 Taiwan Semiconductor
Manufacturing ADR 656,607
-------------
1,842,492
THAILAND - 4.3%
63,000 Advanced Info Service 183,862
2,300 Banpu 31,929
7,600 Banpu NVDR 104,547
716,400 Land & Houses 234,455
65,900 PTT Exploration & Production 345,146
153,100 Siam Commercial Bank 446,813
-------------
1,346,752
TURKEY - 1.3%
6,012 Eregli Demir ve Celik Fabrikalari 53,299
16,783 Hurriyet Gazetecilik (1) 29,890
2,067 Otokar Otobus Karoseri Sanayi 25,460
Shares Value $
- ------------ -------------
4,266 Turkcell Iletisim Hizmet 34,139
4,400 Turkcell Iletisim Hizmet ADR 88,660
11,962 Turkiye Halk Bankasi (1) 68,979
23,105 Turkiye Is Bankasi 106,951
-------------
407,378
-------------
TOTAL COMMON STOCK
(Cost $22,188,616) 25,447,261
-------------
INDEX-LINKED
WARRANTS (1) (3) (4) - 8.7%
BRAZIL - 3.7%
1,555 MSCI Daily Trust Net Brazil USD
Expires 03/05/09 (2) (5) 1,165,458
-------------
INDIA - 4.2%
2,385 MSCI Daily Total Return Net
Emerging Markets India Local
Expires 08/17/08 27,366
125 MSCI Daily Total Return Net
Emerging Markets India USD,
Expires 10/25/08 67,012
119 MSCI Daily Total Return Net
Emerging Markets India USD,
Expires 01/07/09 (2) (5) 63,795
195 MSCI Daily Total Return Net
Emerging Markets India USD,
Expires 01/09/09 (2) (5) 104,538
70,643 MSCI Daily Total Return Net
Emerging Markets India
Expires 10/25/08 (2) (5) 809,781
492 MSCI Daily Trust Net Emerging
Markets India USD
Expires 04/24/09 (2) (5) 263,758
-------------
1,336,250
TURKEY - 0.8%
253 MSCI Daily Total Return Net
Emerging Markets Turkey USD
Expires 05/05/08 61,593
322 MSCI Daily Total Return Net
Emerging Markets Turkey USD
Expires 06/16/08 81,945
360 MSCI Daily Total Return Net
Emerging Markets Turkey USD
Expires 10/08/08 89,435
-------------
232,973
-------------
TOTAL INDEX-LINKED
WARRANTS
(Cost $2,709,174) 2,734,681
-------------
The accompanying notes are an integral part of the financial statements.
38
SCHRODER EMERGING MARKET EQUITY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
EQUITY-LINKED
WARRANTS (3) (4) - 4.1%
TAIWAN - 2.3%
169,522 Chinatrust Financial Holding
Expires 01/21/09 176,812
100,264 Far Eastern Textile
Expires 03/10/10 168,602
173,354 SinoPac Financial Holdings
Expires 09/06/11 85,637
99,478 Taiwan Cement
Expires 01/20/09 160,955
85,082 TSRC
Expires 11/01/10 136,769
-------------
728,775
UNITED ARAB EMIRATES - 1.8%
289,213 Air Arabia
Expires 08/13/10 158,200
99,367 Aldar Properties
Expires 08/13/10 313,602
30,000 Emaar Properties
Expires 01/12/10 93,450
-------------
565,252
-------------
TOTAL EQUITY-LINKED
WARRANTS
(Cost $1,094,509) 1,294,027
-------------
PREFERRED STOCK - 3.3%
BRAZIL - 3.3%
10,300 Bradespar 303,856
8,058 Cia Energetica de Minas Gerais 167,516
9,440 Eletropaulo Metropolitana
Eletricidade de Sao Paulo 211,463
5,100 Suzano Papel e Celulose 88,682
3,300 Ultrapar Participacoes 118,399
3,300 Usinas Siderurgicas de Minas
Gerais Class A 158,646
-------------
TOTAL PREFERRED STOCK
(Cost $783,503) 1,048,562
-------------
RIGHTS - 0.0%
BRAZIL - 0.0%
20 Cia de Bebidas das Americas (1)
(Cost $--) --
-------------
Principal
Amount $ Value $
- ------------ -------------
SHORT-TERM INVESTMENT - 3.4%
1,065,228 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $1,065,228) 1,065,228
-------------
TOTAL INVESTMENTS - 100.1%
(Cost $27,841,030) 31,589,759
-------------
OTHER ASSETS LESS
LIABILITIES - (0.1)% (21,089)
-------------
NET ASSETS - 100.0% $ 31,568,670
=============
(1) Denotes non-income producing security.
(2) Security considered illiquid. On April 30, 2008 the value of these
securities amounted to $2,407,330 representing 7.6% of the net assets of
the Fund.
(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, 2008, the value of these
securities amounted to $4,786,837, representing 15.2% of the net assets of
the Fund.
(4) Securities are not readily marketable.
(5) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
NVDR - New Vehicle Delivery Receipt
USD - United States Dollar
The accompanying notes are an integral part of the financial statements.
39
SCHRODER U.S. OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
COMMON STOCK - 89.3%
AUTOS & TRANSPORTATION - 2.0%
72,500 Horizon Lines Class A 764,875
31,100 Kansas City Southern (1) 1,401,988
58,200 Republic Airways Holdings (1) 981,252
78,500 Seaspan 2,086,530
-------------
5,234,645
CONSUMER DISCRETIONARY - 17.0%
140,100 Ambassadors Group 2,726,346
52,500 Bright Horizons Family Solutions (1) 2,489,025
175,700 Casual Male Retail Group (1) 759,024
281,300 Central Garden & Pet (1) 1,448,695
83,800 Central Garden & Pet Class A (1) 420,676
105,900 Children's Place (1) 2,462,175
107,200 Clear Channel Outdoor Holdings Class A (1) 2,038,944
23,800 Diamond Management & Technology Consultants 146,370
131,000 Geo Group (1) 3,464,950
62,200 Home Inns & Hotels Management ADR (1) 1,393,902
58,500 Knology (1) 749,970
92,000 LKQ (1) 2,001,920
80,700 Pinnacle Entertainment (1) 1,252,464
48,700 Regis 1,422,040
39,800 Rent-A-Center (1) 856,894
180,900 Scientific Games Class A (1) 5,094,144
76,500 Sonic (1) 1,682,235
69,800 Standard Parking (1) 1,495,814
111,000 THQ (1) 2,362,080
191,500 Valueclick (1) 3,820,425
15,900 Viad 500,214
103,500 Waste Connections (1) 3,319,245
29,900 Watson Wyatt Worldwide Class A 1,752,738
-------------
43,660,290
CONSUMER STAPLES - 0.7%
21,000 Flowers Foods 543,690
63,600 United Natural Foods (1) 1,259,280
-------------
1,802,970
FINANCIAL SERVICES - 14.1%
73,550 Annaly Capital Management REIT 1,232,698
39,191 Apollo Investment (2) 634,110
78,863 Argo Group International Holdings (1) 2,824,873
68,700 Bank of Hawaii 3,766,821
26,900 Berkshire Hills Bancorp 688,371
100,500 Chimera Investment 1,393,935
178,500 Conseco (1) 2,079,525
26,943 Cullen/Frost Brothers 1,503,958
84,520 CVB Financial 970,290
56,800 Digital Realty Trust 2,201,000
Shares Value $
- --------- -------------
170,900 Euronet Worldwide (1) 3,021,512
91,350 H&E Equipment Services (1) 1,197,598
30,908 Health Care REIT 1,497,493
14,000 Investment Technology Group (1) 675,640
74,400 Investors Real Estate Trust REIT 758,880
70,500 National Retail Properties REIT 1,615,155
146,300 Online Resources (1) 1,479,093
84,500 Reinsurance Group of America 4,392,310
19,800 SVB Financial Group (1) 963,468
58,800 Westamerica Bancorporation 3,436,272
-------------
36,333,002
HEALTH CARE - 12.0%
57,800 Advanced Medical Optics (1) 1,213,800
50,000 Amsurg (1) 1,277,000
15,300 Animal Health International (1) 134,487
34,200 athenahealth (1) 855,000
231,300 Bruker BioSciences (1) 2,803,356
65,300 Cepheid (1) 1,277,921
82,500 Cooper 2,887,500
39,000 Dialysis Corp. of America (1) 298,350
3,000 Ensign Group 28,830
35,500 Haemonetics (1) 2,031,665
14,100 Integra LifeSciences Holdings (1) 597,417
109,800 KV Pharmaceutical (1) 2,683,512
192,800 Lexicon Pharmaceuticals (1) 397,168
52,000 Luminex (1) 1,014,520
50,600 Perrigo 2,074,094
168,500 PSS World Medical (1) 2,775,195
43,500 Psychiatric Solutions (1) 1,509,885
61,600 Sirtris Pharmaceuticals (1) 1,376,760
113,700 Skilled Healthcare Group (1) 1,375,770
91,300 Sun Healthcare Group Class A (1) 1,200,595
54,900 Volcano (1) 649,467
49,500 West Pharmaceutical Services 2,322,045
-------------
30,784,337
MATERIALS & PROCESSING - 7.0%
50,600 Airgas 2,435,378
33,100 Albany International Class A 1,201,530
103,900 Brush Engineered Materials (1) 3,221,939
113,800 Cabot 3,318,408
30,400 Clean Harbors (1) 2,005,488
10,000 FMC 627,800
40,000 Interface Class A 513,600
51,500 Pan American Silver (1) 1,725,250
69,409 ShawCor 2,068,001
79,051 Yamana Gold 1,013,434
-------------
18,130,828
OTHER ENERGY - 9.8%
23,100 Approach Resources (1) 437,745
75,500 CARBO Ceramics 3,588,515
41,700 Concho Resources (1) 1,149,669
137,100 Dresser-Rand Group (1) 5,013,747
The accompanying notes are an integral part of the financial statements.
40
SCHRODER U.S. OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
7,700 FMC Technologies (1) 517,440
207,430 Galleon Energy Class A (1) 3,652,531
58,500 Goodrich Petroleum (1) 1,976,130
21,000 Ormat Technologies 1,035,300
108,500 Parallel Petroleum (1) 2,299,115
123,900 St. Mary Land & Exploration 5,416,908
-------------
25,087,100
PRODUCER DURABLES - 6.6%
66,400 Actuant Class A 2,248,968
27,400 CommScope (1) 1,302,870
48,600 ESCO Technologies (1) 2,262,816
140,400 FEI (1) 3,070,548
54,050 IDEX 1,983,094
20,600 Manitowoc 779,092
116,000 MTC Technologies (1) 2,767,760
19,600 Rofin-Sinar Technologies (1) 746,368
95,600 Veeco Instruments (1) 1,800,148
-------------
16,961,664
TECHNOLOGY - 16.5%
130,800 Anadigics (1) 1,459,728
164,200 Aspen Technology (1) 2,256,108
73,000 Cbeyond (1) 1,441,020
37,900 Constant Contact (1) 676,515
20,500 DRS Technologies 1,280,020
225,500 Emulex (1) 2,951,795
112,900 F5 Networks (1) 2,554,927
144,300 Gartner (1) 3,307,356
49,400 GeoEye (1) 1,137,682
154,600 Informatica (1) 2,467,416
116,300 Interwoven (1) 1,309,538
38,400 IPG Photonics (1) 642,432
37,000 Mantech International Class A (1) 1,767,490
99,700 MEMSIC (1) 790,621
52,200 Microsemi (1) 1,278,900
117,660 Parametric Technology (1) 2,050,814
214,000 QLogic (1) 3,415,440
83,100 RightNow Technologies (1) 994,707
117,500 Semtech (1) 1,908,200
220,800 SonicWALL (1) 1,697,952
45,900 Standard Microsystems (1) 1,360,935
106,500 Syniverse Holdings (1) 1,673,115
217,900 Vishay Intertechnology (1) 2,059,155
119,600 Volterra Semiconductor (1) 1,801,176
-------------
42,283,042
UTILITIES - 3.6%
52,300 Consolidated Communications Holdings 747,890
18,300 Mediacom Communications Class A (1) 78,507
70,200 NorthWestern 1,742,364
127,000 Paetec Holding (1) 979,170
55,600 Portland General Electric 1,334,400
Shares Value $
- ------------ -------------
35,800 Time Warner Telecom Class A (1) 701,680
31,900 UIL Holdings 998,470
83,600 Unisource Energy 2,611,664
-------------
9,194,145
TOTAL COMMON STOCK
(Cost $ 212,521,469) 229,472,023
-------------
Principal
Amount $
- ------------
SHORT-TERM INVESTMENT - 9.9%
25,371,332 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $25,371,332) 25,371,332
-------------
TOTAL INVESTMENTS - 99.2%
(Cost $237,892,801) 254,843,355
-------------
OTHER ASSETS LESS
LIABILITIES - 0.8% 1,927,801
-------------
NET ASSETS - 100.0% $ 256,771,156
=============
(1) Denotes non-income producing security.
(2) Business development company.
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
41
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
COMMON STOCK - 90.6%
AUTOS & TRANSPORTATION - 0.7%
2,100 Wabtec 90,048
-------------
CONSUMER DISCRETIONARY - 16.6%
6,500 Cheesecake Factory (1) 147,095
9,000 Corrections Corp. of America (1) 229,500
7,300 Interpublic Group of Cos. (1) 66,065
4,100 Lamar Advertising Class A (1) 162,114
3,100 Meredith 100,471
4,000 Regis 116,800
5,600 Republic Services 178,024
1,200 Ritchie Brothers Auctioneers 29,940
5,500 Ross Stores 184,195
14,600 Scientific Games Class A (1) 411,136
13,200 Valueclick (1) 263,340
7,200 VeriSign (1) 259,560
1,600 Watson Wyatt Worldwide Class A 93,792
-------------
2,242,032
CONSUMER STAPLES - 0.9%
3,100 Ruddick 119,970
-------------
FINANCIAL SERVICES - 12.2%
2,300 AllianceBernstein Holding LP 142,646
2,000 Annaly Capital Management REIT 33,520
3,400 Bank of Hawaii 186,422
3,500 Cullen/Frost Brothers 195,370
1,000 Dun & Bradstreet 84,300
3,700 Genpact (1) 52,910
4,400 Global Payments 194,744
2,200 Health Care REIT 106,590
6,300 Reinsurance Group of America 327,474
2,800 Westamerica Bancorporation 163,632
5,900 WR Berkley 151,571
-------------
1,639,179
HEALTH CARE - 12.5%
6,100 Advanced Medical Optics (1) 128,100
7,400 Barr Pharmaceuticals (1) 371,702
7,000 DaVita (1) 366,870
2,000 Gen-Probe (1) 112,720
1,900 Health Net (1) 55,651
4,300 IMS Health 106,425
4,400 Inverness Medical Innovations (1) 162,800
4,400 Patterson (1) 150,480
2,100 Perrigo 86,079
3,100 West Pharmaceutical Services 145,421
-------------
1,686,248
MATERIALS & PROCESSING - 10.3%
7,500 Albemarle 280,575
6,200 Cabot 180,792
1,100 Commercial Metals 34,254
8,500 Crown Holdings (1) 228,140
Shares Value $
- --------- -------------
1,200 Jacobs Engineering Group (1) 103,596
12,200 Pactiv (1) 290,238
1,900 Pan American Silver (1) 63,650
4,600 ShawCor 137,054
5,270 Yamana Gold 67,562
-------------
1,385,861
OTHER ENERGY - 9.1%
3,200 Concho Resources (1) 88,224
2,600 Denbury Resources (1) 79,456
8,500 Dresser-Rand Group (1) 310,845
2,800 Exterran Holdings (1) 187,012
1,800 Forest Oil (1) 106,074
9,100 Galleon Energy Class A (1) 160,237
4,500 Range Resources 298,710
-------------
1,230,558
PRODUCER DURABLES - 5.2%
1,600 CommScope (1) 76,080
2,400 Curtiss-Wright 113,976
5,500 Dover 272,085
6,550 IDEX 240,319
-------------
702,460
TECHNOLOGY - 17.0%
6,300 Adtran 149,058
13,200 Amdocs (1) 414,216
1,900 Amphenol Class A 87,742
26,100 Brocade Communications
Systems (1) 186,876
1,100 DRS Technologies 68,684
18,000 Emulex (1) 235,620
10,500 F5 Networks (1) 237,615
11,700 Integrated Device Technology (1) 125,073
5,800 Intersil Class A 154,976
10,800 ON Semiconductor (1) 80,676
7,900 Parametric Technology (1) 137,697
17,100 QLogic (1) 272,916
6,000 SAIC (1) 114,000
3,700 Skyworks Solutions (1) 32,153
-------------
2,297,302
UTILITIES - 6.1%
4,900 Citizens Communications 52,528
3,600 NeuStar (1) 99,036
3,900 NII Holdings (1) 178,386
5,900 Portland General Electric 141,600
4,900 Sierra Pacific Resources 66,787
10,600 Time Warner Telecom Class A (1) 207,760
1,300 US Cellular (1) 71,695
-------------
817,792
-------------
TOTAL COMMON STOCK
(Cost $11,673,902) 12,211,450
-------------
The accompanying notes are an integral part of the financial statements.
42
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
INVESTMENT COMPANY - 1.0%
1,300 iShares Russell Midcap Index Fund
(Cost $121,789) 129,350
-------------
Principal
Amount $
- ------------
SHORT-TERM INVESTMENT - 8.1%
1,091,291 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $1,091,291) 1,091,291
-------------
TOTAL INVESTMENTS - 99.7%
(Cost $12,886,982) 13,432,091
-------------
OTHER ASSETS LESS LIABILITIES - 0.3% 39,561
-------------
NET ASSETS - 100.0% $ 13,471,652
=============
(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.
43
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
COMMON STOCK - 99.3%
BARBADOS - 0.2%
11,600 Everest Re Group 1,048,060
-------------
BERMUDA - 1.4%
60,376 Accenture Class A 2,267,119
28,138 ACE 1,696,440
5,400 Allied World Assurance Holdings 222,642
7,934 Arch Capital Group (1) 560,537
10,300 Aspen Insurance Holdings 267,697
24,767 Axis Capital Holdings 839,849
7,400 Endurance Specialty Holdings 274,762
10,800 Max Re Capital 252,828
31,744 Nabors Industries (1) 1,191,670
8,800 PartnerRe 651,024
5,890 Platinum Underwriters Holdings 211,274
12,700 RenaissanceRe Holdings 653,288
18,800 XL Capital Class A 655,932
-------------
Total Bermuda 9,745,062
-------------
CANADA - 6.8%
18,000 Addax Petroleum 802,304
16,500 AltaGas Income Trust 396,564
19,197 ARC Energy Trust 496,464
13,300 Bank of Montreal 661,764
33,325 Bank of Nova Scotia 1,582,681
35,200 Barrick Gold 1,353,255
51,400 BCE 1,878,558
5,550 Bell Aliant Regional Communications
(1) (2) (3) (4) 165,910
22,000 Canaccord Capital 226,140
45,169 Canadian National Railway 2,365,888
19,000 Canadian Oil Sands Trust 853,481
23,500 Canadian Pacific Railway 1,619,257
10,700 Davis & Henderson 181,397
24,200 Dundee (1) 332,152
52,366 EnCana 4,225,581
12,615 Enerplus Resources Fund 566,413
9,000 First Quantum Minerals 790,416
4,800 Fording Canadian Coal Trust 295,847
48,654 Gerdau Ameristeel 759,489
14,700 Gildan Activewear (1) 376,807
15,400 Goldcorp 547,695
45,400 Husky Energy 2,050,643
5,400 MacDonald Dettwiler & Associates (1) 219,883
32,052 Manulife Financial 1,253,240
19,200 Methanex 448,108
6,600 Mullen Group Income Fund 129,522
21,700 National Bank of Canada 1,157,951
13,800 Nexen 478,320
11,800 Northbridge Financial 407,240
47,206 Penn West Energy Trust 1,423,117
22,600 Peyto Energy Trust 440,598
Shares Value $
- ------------ -------------
5,800 Potash Corp. of Saskatchewan 1,067,894
28,994 Power Corp. of Canada 1,017,050
17,900 Progress Energy Trust 249,772
25,384 Research In Motion (1) 3,090,500
57,386 Royal Bank of Canada 2,736,792
72,058 Shaw Communications Class B 1,508,573
24,100 Shoppers Drug Mart 1,273,095
21,100 Sun Life Financial 1,020,319
2,079 Teck Cominco Class B 90,477
33,709 Teck Cominco Class B (United States) 1,472,072
44,044 Toronto-Dominion Bank 2,891,795
24,700 TransCanada 905,184
29,900 Trinidad Drilling 380,691
11,500 Vermilion Energy Trust 453,079
59,600 Yellow Pages Income Fund 649,332
-------------
Total Canada 47,293,310
-------------
CAYMAN ISLANDS - 0.3%
8,100 Garmin 331,290
4,900 Herbalife 214,522
71,311 Seagate Technology 1,345,638
7,900 United America Indemnity (1) 122,134
-------------
Total Cayman Islands 2,013,584
-------------
PUERTO RICO - 0.0%
31,700 W Holding 33,602
-------------
UNITED STATES - 90.6%
ALLIANCE DATA SYSTEMS - 0.2%
10,500 Arbitron 502,320
14,900 CSG Systems International (1) 180,290
20,200 Fiserv (1) 1,021,110
-------------
1,703,720
APPAREL & ACCESSORY STORES - 0.6%
18,841 Abercrombie & Fitch Class A 1,400,075
42,500 Nordstrom 1,498,550
29,000 Ross Stores 971,210
-------------
3,869,835
AUTO & TRANSPORTATION - 0.0%
6,100 Forward Air 207,949
-------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE
STATIONS - 0.3%
20,500 Advance Auto Parts 710,940
11,773 Autozone (1) 1,421,590
-------------
2,132,530
AUTOMOTIVE REPAIR, SERVICES & PARKING - 0.1%
7,476 Ryder System 511,882
8,300 Standard Parking (1) 177,869
4,200 Wright Express (1) 138,600
-------------
828,351
The accompanying notes are an integral part of the financial statements.
44
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
BUILDING CONSTRUCTION GENERAL CONTRACTORS - 0.2%
13,800 DR Horton 213,762
1,500 NVR (1) 920,250
-------------
1,134,012
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 0.8%
80,346 Home Depot 2,313,965
98,647 Lowe's 2,484,918
14,372 Sherwin-Williams 795,059
-------------
5,593,942
BUSINESS SERVICES - 5.5%
20,886 Adobe Systems (1) 778,839
22,226 Affiliated Computer Services Class A (1) 1,177,311
9,400 Asset Acceptance Capital 113,270
12,800 Automatic Data Processing 565,760
57,100 Check Point Software Technologies (1) 1,348,702
16,900 Clear Channel Outdoor Holding Class A (1) 321,438
53,900 CNET Networks (1) 417,725
11,837 Equifax 453,002
9,700 Fair Isaac 240,269
36,900 Fidelity National Information Services 1,330,614
12,540 Google Class A (1) 7,201,597
7,065 Imergent 80,612
7,600 infoUSA 43,092
3,500 Mastercard Class A 973,560
452,751 Microsoft 12,912,458
1,600 MicroStrategy Class A (1) 141,968
30,300 MoneyGram International 46,965
2,000 NAVTEQ (1) 148,420
7,900 NetFlix (1) 252,642
30,566 Omnicom Group 1,459,221
287,440 Oracle (1) 5,993,124
7,900 Sotheby's 218,830
8,400 Sybase (1) 247,128
40,700 Total System Services 968,660
15,920 United Online 170,025
-------------
37,605,232
CHEMICALS & ALLIED PRODUCTS - 9.9%
99,040 Abbott Laboratories 5,224,360
10,500 Air Products & Chemicals 1,033,515
60,783 Amgen (1) 2,544,984
10,400 Arch Chemicals 354,328
11,100 Church & Dwight 630,702
42,058 Colgate-Palmolive 2,973,501
12,500 Eastman Chemical 918,750
17,500 Ecolab 804,300
28,900 EI Du Pont de Nemours 1,413,499
Shares Value $
- ------------ -------------
82,796 Eli Lilly 3,985,799
37,806 Genentech (1) 2,578,369
32,300 Genzyme (1) 2,272,305
71,731 Gilead Sciences (1) 3,712,797
10,700 Huntsman 240,643
17,700 ImClone Systems (1) 825,705
159,706 Johnson & Johnson 10,714,676
107,728 Merck 4,097,973
14,400 Monsanto 1,641,888
16,200 Olin 326,754
352,321 Pfizer 7,085,175
14,836 Praxair 1,354,675
168,959 Procter & Gamble 11,328,701
23,100 Rohm & Haas 1,234,695
2,700 Stepan 106,218
30,431 Wyeth 1,353,267
-------------
68,757,579
COAL MINING - 0.1%
11,900 Alliance Resource Partners LP 493,493
17,000 Natural Resource Partners LP 550,120
-------------
1,043,613
COMMUNICATIONS - 4.5%
32,300 American Tower (1) 1,402,466
331,786 AT&T 12,843,436
9,100 Atlantic Telegraph Network 283,283
26,796 CenturyTel 869,530
68,729 Citizens Communications 736,775
57,970 Comcast Class A 1,191,284
17,759 Comcast Class Special Class A 359,442
27,100 CTC Media (1) 701,077
55,700 DIRECTV Group (1) 1,372,448
45,500 DISH Network (1) 1,357,720
3,015 Fairpoint Communications 27,768
22,000 Soapstone Networks 154,000
21,763 Sprint Nextel 173,886
27,200 Syniverse Holdings (1) 427,312
19,700 USA Mobility 140,658
178,978 Verizon Communications 6,887,074
53,896 Viacom Class B (1) 2,071,762
-------------
30,999,921
DEPOSITORY INSTITUTIONS - 8.4%
242,875 Bank of America 9,117,528
80,924 Bank of New York Mellon 3,522,622
47,600 BB&T 1,632,204
32,100 Capital One Financial 1,701,300
4,000 Capital Bancorp 68,760
14,000 Central Pacific Financial 257,040
260,972 Citigroup 6,594,762
10,200 City Bank 184,824
3,300 Community Trust Bancorp 99,198
24,300 Corus Bankshares 178,119
26,100 First Niagara Financial Group 376,623
The accompanying notes are an integral part of the financial statements.
45
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
9,700 First State Bancorporation 90,210
15,500 FNB 239,630
14,300 Frontier Financial 228,800
4,600 IBERIABANK 221,720
189,363 JPMorgan Chase 9,023,147
32,900 Keycorp 793,877
5,500 M&T Bank 512,765
4,400 Midwest Banc Holdings 45,232
32,436 National City 204,347
11,600 Pacific Capital Bancorp 236,408
68,918 Regions Financial 1,510,683
12,200 Renasant 282,674
20,900 South Financial Group 126,236
34,400 State Street 2,481,616
12,100 Sterling Financial 147,741
26,900 SunTrust Banks 1,499,675
20,800 TCF Financial 361,920
25,600 Trustco Bank NY 223,488
115,364 U.S. Bancorp 3,909,686
12,000 Umpqua Holdings 177,000
17,281 UnionBanCal 907,425
135,876 Wachovia 3,960,785
199,399 Wells Fargo 5,932,120
10,600 WesBanco 228,006
12,000 Whitney Holding 280,920
13,900 Zions Bancorporation 644,265
-------------
58,003,356
EATING & DRINKING PLACES - 1.1%
25,644 Darden Restaurants 912,413
78,710 McDonald's 4,689,542
43,853 Yum! Brands 1,783,940
-------------
7,385,895
EDUCATIONAL SERVICES - 0.2%
27,968 Apollo Group Class A (1) 1,423,571
1,200 Strayer Education 222,828
-------------
1,646,399
ELECTRIC & OTHER ELECTRICAL EQUIPMENT - 6.1%
8,700 Acuity Brands 416,208
178,487 Cisco Systems (1) 4,576,407
60,854 Emerson Electric 3,180,230
461,527 General Electric 15,091,933
18,304 Harris 988,965
333,685 Intel 7,427,828
16,486 Maxim Integrated Products 346,700
14,000 MEMC Electronic Materials (1) 881,580
25,331 Microchip Technology 930,914
46,721 National Semiconductor 952,641
106,815 Qualcomm 4,613,340
33,800 Smart Modular Technologies WWH (1) 203,814
Shares Value $
- ------------ -------------
95,686 Texas Instruments 2,790,204
5,749 Verigy (1) 122,856
-------------
42,523,620
ELECTRIC, GAS & SANITARY SERVICES - 2.9%
31,651 Alliant Energy 1,192,293
25,100 Ameren 1,138,536
7,200 American Ecology 191,376
76,000 Centerpoint Energy 1,156,720
26,100 Cleco 626,661
12,600 Constellation Energy Group 1,066,590
16,465 DTE Energy 663,704
39,902 Exelon 3,410,823
22,800 FPL Group 1,511,412
34,600 Mirant (1) 1,422,406
21,400 PPL 1,027,628
19,600 Public Service Enterprise Group 860,636
30,222 Republic Services 960,758
55,740 Southern 2,075,200
50,000 TECO Energy 800,500
40,490 Waste Management 1,461,689
33,900 Xcel Energy 705,120
-------------
20,272,052
ENGINEERING, ACCOUNTING & RESEARCH
MANAGEMENT - 0.1%
15,900 Pharmaceutical Product Development 658,578
-------------
FABRICATED METAL PRODUCTS - 0.5%
6,458 Alliant Techsystems (1) 710,251
21,089 Commercial Metals 656,711
45,200 Illinois Tool Works 2,363,508
-------------
3,730,470
FOOD & KINDRED PRODUCTS - 4.2%
84,165 Altria Group 1,683,300
28,214 Anheuser-Busch 1,388,129
62,973 Archer-Daniels Midland 2,774,590
134,974 Coca-Cola 7,945,919
18,500 Coca-Cola Enterprises 416,250
26,100 General Mills 1,576,440
36,344 Hormel Foods 1,432,317
31,400 Kellogg 1,606,738
97,780 Kraft Foods Class A 3,092,782
15,174 Pepsi Bottling Group 511,516
97,791 PepsiCo 6,701,617
-------------
29,129,598
FOOD STORES - 0.4%
43,800 Kroger 1,193,550
43,200 Safeway 1,365,120
-------------
2,558,670
The accompanying notes are an integral part of the financial statements.
46
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ ------------
FORESTRY - 0.2%
28,000 Plum Creek Timber REIT 1,143,520
------------
FURNITURE & FIXTURES - 0.0%
6,100 Herman Miller 142,313
------------
GENERAL MERCHANDISE STORES - 2.1%
31,538 Costco Wholesale 2,247,083
14,500 Target 770,385
53,520 TJX 1,724,414
171,089 Wal-Mart Stores 9,919,740
------------
14,661,622
HEALTH SERVICES - 0.8%
6,100 Amedisys (1) 315,980
8,500 Covance (1) 712,215
20,123 Coventry Health Care (1) 900,102
20,300 Express Scripts (1) 1,421,406
23,300 Laboratory Corp of America
Holdings (1) 1,761,946
6,200 Nighthawk Radiology Holdings (1) 46,500
4,600 Pediatrix Medical Group (1) 312,892
------------
5,471,041
HOLDING & OTHER INVESTMENT OFFICES - 1.5%
36,100 Anthracite Capital REIT 281,580
15,000 Arbor Realty Trust REIT 259,050
37 Berkshire Hathaway Class A (1) 4,952,450
13,829 Boston Properties REIT 1,389,676
874 Brookfield Infrastructure Partners LP 17,367
8,600 Capital Trust REIT 230,050
23,500 Colonial Properties Trust REIT 569,405
18,500 Getty Realty REIT 335,035
16,500 Gramercy Capital REIT 313,500
25,100 JER Investors Trust REIT 193,270
8,900 National Health Investors REIT 272,251
29,800 NorthStar Realty Finance REIT 309,026
13,700 Omega Healthcare Investors REIT 239,750
20,000 Resource Capital REIT 173,800
16,400 Ventas REIT 796,384
50,100 Winthrop Realty Trust REIT 217,935
------------
10,550,529
HOME FURNITURE, FURNISHINGS &
EQUIPMENT STORES - 0.3%
45,765 Best Buy 1,968,810
------------
HOTELS, ROOMING HOUSES, CAMPS - 0.2%
12,000 Wynn Resorts 1,264,080
------------
INDUSTRIAL & COMMERCIAL MACHINERY/COMPUTER
EQUIPMENT - 6.6%
49,235 3M 3,786,172
37,087 Apple (1) 6,451,284
Shares Value $
- ------------ ------------
123,437 Applied Materials 2,303,334
43,083 Caterpillar 3,527,636
9,500 Cymer (1) 246,905
28,694 Deere 2,412,305
128,980 Dell (1) 2,402,897
147,426 Hewlett-Packard 6,833,195
76,116 International Business Machines 9,187,201
11,500 Lam Research (1) 469,660
12,077 Lexmark International Class A (1) 379,097
28,500 Manitowoc 1,077,870
7,700 Rockwell Automation 417,571
8,720 Smith International 667,167
18,000 Stanley Works 868,320
21,200 Terex (1) 1,477,216
24,763 Trane 1,151,727
31,400 Varian Medical Systems (1) 1,472,032
32,639 Western Digital (1) 946,205
------------
46,077,794
INSURANCE AGENTS, BROKERS & SERVICE - 0.3%
25,000 Hartford Financial Services Group 1,781,750
------------
INSURANCE CARRIERS - 4.8%
51,400 Aetna 2,241,040
39,000 Aflac 2,600,130
41,449 Allstate 2,087,372
16,717 American Financial Group 458,380
93,223 American International Group 4,306,902
19,500 Amerisafe (1) 278,070
19,000 Assurant 1,235,000
32,300 Chubb 1,710,931
25,600 Cincinnati Financial 919,040
31,700 CNA Financial 849,877
11,000 Employers Holdings 209,880
7,400 First Mercury Financial (1) 116,920
49,700 Genworth Financial Class A 1,146,082
3,700 Harleysville Group 134,865
16,929 HCC Insurance Holdings 417,808
11,800 Horace Mann Educators 199,656
19,700 Lincoln National 1,059,072
16,800 Meadowbrook Insurance Group 121,632
35,200 MetLife 2,141,920
8,900 Odyssey Re Holdings 318,442
14,300 Protective Life 609,466
5,000 Prudential Financial 378,550
5,900 RLI 283,200
5,600 Safety Insurance Group 201,040
10,720 Selective Insurance Group 228,550
3,700 State Auto Financial 101,935
8,100 Transatlantic Holdings 525,285
50,419 Travelers 2,541,118
79,012 UnitedHealth Group 2,578,161
46,748 WellPoint (1) 2,325,713
28,485 WR Berkley 731,780
The accompanying notes are an integral part of the financial statements.
47
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ ------------
4,200 Zenith National Insurance 155,988
------------
33,213,805
MEASURING, ANALYZING & CONTROLLING
INSTRUMENTS - 2.9%
12,900 Alcon (1) 2,038,200
28,012 Becton Dickinson 2,504,273
18,800 CR Bard 1,770,396
5,500 Haemonetics (1) 314,765
6,300 Intuitive Surgical (1) 1,822,338
82,900 Medtronic 4,035,572
9,800 MTS Systems 336,924
47,839 St. Jude Medical (1) 2,094,391
25,300 Stryker 1,640,199
4,700 Techne (1) 340,844
14,100 Waters (1) 866,586
28,553 Zimmer Holdings (1) 2,117,491
------------
19,881,979
METAL MINING - 0.6%
16,492 Freeport-McMoRan
Copper & Gold 1,875,965
27,551 Newmont Mining 1,218,030
11,788 Southern Copper 1,352,791
------------
4,446,786
MISCELLANEOUS MANUFACTURING
INDUSTRIES - 0.4%
38,100 Hasbro 1,354,836
68,900 Mattel 1,291,875
------------
2,646,711
MISCELLANEOUS RETAIL - 1.2%
16,572 Amazon.com (1) 1,303,056
104,500 CVS Caremark 4,218,665
11,200 Suburban Propane Partners LP 457,520
61,359 Walgreen 2,138,361
------------
8,117,602
MOTION PICTURES - 0.3%
130,297 Time Warner 1,934,911
9,540 Walt Disney 309,382
------------
2,244,293
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.3%
24,537 JB Hunt Transport Services 833,522
15,104 United Parcel Service Class B 1,093,681
------------
1,927,203
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.7%
31,300 Advance America Cash
Advance Centers 275,753
23,452 American Capital Strategies 744,601
15,500 AmeriCredit (1) 216,380
21,300 Ares Capital 239,838
Shares Value $
- ------------ ------------
7,600 Asta Funding 108,452
39,300 CapitalSource REIT 552,165
73,697 Fannie Mae 2,085,625
6,500 Financial Federal 151,775
29,000 MCG Capital 222,140
37,700 Ocwen Financial (1) 186,238
------------
4,782,967
OIL & GAS EXTRACTION - 4.6%
34,167 Anadarko Petroleum 2,274,155
11,300 Apache 1,521,884
25,300 Baker Hughes 2,046,264
6,400 Basic Energy Services (1) 148,480
30,586 BJ Services 864,666
11,900 Bronco Drilling (1) 204,680
13,200 Chesapeake Energy 682,440
10,600 Cimarex Energy 660,380
21,100 Complete Production Services (1) 569,911
18,204 Devon Energy 2,064,334
8,900 Diamond Offshore Drilling 1,116,149
18,700 ENSCO International 1,191,751
79,300 Grey Wolf (1) 497,211
15,911 Noble Energy 1,384,257
48,205 Occidental Petroleum 4,011,138
13,164 Patterson-UTI Energy 367,802
26,800 Rowan 1,044,932
52,069 Schlumberger 5,235,538
6,400 SEACOR Holdings (1) 544,704
4,500 St. Mary Land & Exploration 196,740
7,697 Transocean 1,135,000
12,600 Union Drilling (1) 213,066
8,000 W&T Offshore 327,200
20,081 Weatherford International (1) 1,619,934
31,250 XTO Energy 1,933,125
------------
31,855,741
PAPER & ALLIED PRODUCTS - 0.2%
21,200 Kimberly-Clark 1,356,588
------------
PETROLEUM REFINING - 7.4%
117,621 Chevron 11,309,259
94,053 ConocoPhillips 8,102,666
271,504 Exxon Mobil 25,268,877
17,838 Hess 1,894,396
47,919 Marathon Oil 2,183,669
28,000 Sunoco 1,299,480
28,884 Valero Energy 1,410,983
------------
51,469,330
PRIMARY METAL INDUSTRIES - 1.1%
62,000 Alcoa 2,156,360
115,591 Corning 3,087,436
7,900 General Cable (1) 529,300
26,400 Nucor 1,993,200
------------
7,766,296
The accompanying notes are an integral part of the financial statements.
48
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ ------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.3%
11,884 EW Scripps Class A 533,711
22,344 Gannett 639,485
26,297 McGraw-Hill 1,077,914
------------
2,251,110
RAILROAD TRANSPORTATION - 1.0%
28,916 Burlington Northern Santa Fe 2,965,336
31,400 CSX 1,976,630
30,900 Norfolk Southern 1,841,022
------------
6,782,988
REAL ESTATE - 0.1%
16,500 WP Carey LP 493,020
------------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 0.1%
2,000 Deckers Outdoor (1) 276,140
8,800 Tupperware Brands 346,720
------------
622,860
RUBBER & PLASTIC - 0.0%
18,600 Schulman A 394,320
------------
SECURITY & COMMODITY BROKER, DEALERS EXCHANGES &
SERVICES - 2.6%
3,700 BlackRock 746,623
31,600 Broadridge Financial Solutions 588,392
71,600 Charles Schwab 1,546,560
6,900 Federated Investors 231,012
12,000 GFI Group 141,000
23,876 Goldman Sachs Group 4,569,150
5,200 IntercontinentalExchange (1) 806,780
43,560 Lehman Brothers Holdings 1,927,094
10,600 Nasdaq OMX Group (1) 386,370
84,165 Philip Morris International (1) 4,294,940
27,400 SEI Investments 637,598
9,300 SWS Group 122,016
21,009 T Rowe Price Group 1,230,287
44,200 TD Ameritrade Holding (1) 800,020
------------
18,027,842
TOBACCO PRODUCTS - 0.3%
22,100 Reynolds American 1,190,085
13,700 UST 713,359
------------
1,903,444
Shares Value $
- ------------ ------------
TRANSPORTATION BY AIR - 0.1%
11,100 Republic Airways Holdings (1) 187,146
14,800 Skywest 281,644
------------
468,790
TRANSPORTATION EQUIPMENT - 2.4%
24,342 Goodrich 1,658,907
5,914 Harley-Davidson 226,211
9,500 Harsco 563,635
56,460 Honeywell International 3,353,724
30,801 Lockheed Martin 3,266,138
37,618 Paccar 1,780,084
23,800 Textron 1,452,038
63,177 United Technologies 4,578,437
------------
16,879,174
TRANSPORTATION SERVICES - 0.2%
10,600 Ambassadors Group 206,276
19,800 Expeditors International of Washington 922,482
------------
1,128,758
WATER TRANSPORTATION - 0.1%
11,200 Tidewater 730,464
------------
WHOLESALE TRADE NON-DURABLE GOODS - 0.7%
14,729 AmerisourceBergen 597,261
4,400 Henry Schein (1) 243,628
45,000 Medco Health Solutions (1) 2,229,300
30,688 Nike Class B 2,049,958
------------
5,120,147
WHOLESALE TRADE-DURABLE
GOODS - 0.1%
8,082 Anixter International (1) 460,431
19,266 Arrow Electronics (1) 524,228
------------
984,659
------------
Total United States 628,343,658
------------
TOTAL COMMON STOCK
(Cost $660,565,339) 688,477,276
------------
RIGHTS - 0.0%
UNITED STATES - 0.0%
5,010 Winthrop Realty Trust, Expires 05/12/08 (1)
(Cost $--) 401
------------
The accompanying notes are an integral part of the financial statements.
49
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
SHORT-TERM INVESTMENT - 0.6%
3,932,903 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $3,932,903) 3,932,903
------------
TOTAL INVESTMENTS - 99.9%
(Cost $664,498,242) 692,410,580
------------
OTHER ASSETS LESS LIABILITIES - 0.1% 690,960
------------
NET ASSETS - 100.0% $693,101,540
============
(1) Denotes non-income producing security.
(2) Security considered illiquid. On April 30, 2008 the value of this security
amounted to $165,910 representing less than 0.1% of the net assets of the
Fund.
(3) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
(4) 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, 2008, the value of this
security amounted to $165,910, representing less than 0.1% of the net
assets of the Fund.
LP - Limited Partnership
REIT - Real Estate Investment Trust
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2008:
NUMBER NET
OF EXPIRATION UNREALIZED
CONTRACTS VALUE DATE APPRECIATION
--------- ---------- ---------- ------------
LONG:
S&P 500
Index 6 $2,079,000 Jun-08 $61,205
=======
The accompanying notes are an integral part of the financial statements.
50
SCHRODER TOTAL RETURN FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS - 28.4%
FHLMC Gold
384,373 6.500%, 07/01/32 400,539
29,568 6.000%, 12/01/28 30,483
637,426 5.000%, 07/01/33 628,579
2,131,801 5.000%, 08/01/33 2,102,213
288,481 4.500%, 03/01/19 286,134
2,510,000 FHLMC TBA
5.500%, 05/15/37 2,525,688
57 FHLMC IO (1)
859.107%, 01/15/22 949
FNMA
133,243 7.500%, 12/01/29 143,922
9,531 7.000%, 12/01/10 9,666
196,425 6.000%, 12/01/28 202,511
303,804 6.000%, 10/01/29 313,121
299,342 5.500%, 10/01/32 302,203
345,931 5.500%, 01/01/33 349,237
2,748,804 5.500%, 07/01/33 2,773,360
695,285 4.500%, 10/01/33 663,615
125,000 4.250%, 05/15/09 126,973
GNMA
31,155 8.000%, 11/15/17 33,765
18,585 8.000%, 06/15/26 20,348
147,273 7.000%, 09/15/23 158,035
3,590,689 6.000%, 09/20/37 3,691,215
518,159 5.500%, 01/15/34 526,282
246,665 5.500%, 09/20/34 250,038
1,121,478 5.500%, 10/15/34 1,138,757
649,281 5.500%, 01/15/35 659,195
4,133,742 5.000%, 05/15/34 4,102,067
-------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $21,107,678) 21,438,895
-------------
COMMERCIAL PAPER (2) - 27.1%
2,500,000 Barclays Capital
3.048%, 05/19/08 2,496,219
3,700,000 Citigroup Funding
2.927%, 05/21/08 3,693,998
7,500,000 General Electric Capital
2.434%, 06/27/08 7,471,262
6,800,000 Toyota Motor Credit
2.422%, 06/10/08 6,781,767
-------------
TOTAL COMMERCIAL PAPER
(Cost $20,443,246) 20,443,246
-------------
U.S. TREASURY
OBLIGATIONS (3) - 24.3%
2,582,090 U.S. Treasury Inflation
Indexed Bond
2.375%, 01/15/27 2,716,038
Principal
Amount $ Value $
- ------------ -------------
U.S. Treasury Notes
530,000 5.000%, 05/15/37 574,553
1,030,000 4.750%, 08/15/17 1,109,987
1,425,000 4.500%, 11/30/11 1,515,066
3,005,000 3.500%, 02/15/18 2,942,084
3,630,000 3.125%, 04/30/13 3,644,179
170,000 2.500%, 03/31/13 165,936
5,685,000 2.125%, 04/30/10 5,670,344
-------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $18,181,249) 18,338,187
-------------
CORPORATE
OBLIGATIONS (3) - 12.8%
165,000 Assured Guaranty, Series A (1) (4) (5)
6.400%, 12/15/66 113,850
285,000 AT&T
5.500%, 02/01/18 285,485
250,000 Bank of America
6.100%, 06/15/17 262,767
205,000 Barclays Bank
5.450%, 09/12/12 209,160
285,000 BellSouth
4.750%, 11/15/12 284,824
160,000 Cisco Systems
5.500%, 02/22/16 165,990
115,000 Colorado Interstate Gas
6.800%, 11/15/15 121,356
280,000 Credit Suisse USA
5.500%, 08/16/11 287,479
125,000 CSX
7.450%, 04/01/38 130,622
60,000 FTI Consulting
7.625%, 06/15/13 62,550
125,000 Gaz Capital (6)
6.212%, 11/22/16 118,438
165,000 General Electric Capital MTN, Series A
5.875%, 02/15/12 172,908
400,000 General Electric Capital
5.625%, 05/01/18 404,857
75,000 Gerdau Ameristeel
10.375%, 07/15/11 78,469
570,000 Goldman Sachs Group
6.150%, 04/01/18 577,647
300,000 GTL Trade Finance (6)
7.250%, 10/20/17 309,060
135,000 HSBC Holdings
6.500%, 09/15/37 132,814
105,000 Industrial Bank of Korea (4) (6)
4.000%, 05/19/14 103,685
275,000 ING Bank (6)
5.125%, 05/01/15 268,998
215,000 ITC Holdings (6)
5.875%, 09/30/16 209,284
The accompanying notes are an integral part of the financial statements.
51
SCHRODER TOTAL RETURN FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
360,000 JPMorgan Chase
4.750%, 05/01/13 359,596
445,000 Merrill Lynch
6.875%, 04/25/18 449,434
505,000 Midamerican Energy Holdings (6)
5.750%, 04/01/18 513,896
330,000 Monsanto
5.875%, 04/15/38 326,773
380,000 Morgan Stanley
6.625%, 04/01/18 380,000
125,000 Nevada Power
5.875%, 01/15/15 124,686
245,000 ONEOK Partners LP
6.150%, 10/01/16 245,683
100,000 Petroplus Finance (6)
6.750%, 05/01/14 94,500
250,000 PNC Bank
6.875%, 04/01/18 258,886
250,000 Ras Laffan Liquefied Natural Gas II (6)
5.298%, 09/30/20 231,899
Reynolds American
195,000 7.625%, 06/01/16 207,552
260,000 7.250%, 06/15/37 261,868
200,000 UBS AG Stamford Connecticut
5.875%, 07/15/16 202,829
220,000 Unicredit Luxembourg Finance (4) (6)
5.584%, 01/13/17 203,179
200,000 Verizon Communications
6.400%, 02/15/38 204,391
325,000 Viacom
6.750%, 10/05/37 323,903
250,000 Wachovia Bank
6.600%, 01/15/38 242,517
495,000 Wachovia
5.500%, 05/01/13 496,811
270,000 Xerox
5.500%, 05/15/12 270,332
-------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $9,687,389) 9,698,978
-------------
COMMERCIAL MORTGAGE-
BACKED OBLIGATIONS - 7.6%
1,410,000 Merrill Lynch Mortgage Trust,
Series 2002-MW1, Class A4
5.619%, 07/12/34 1,428,430
1,330,000 Merrill Lynch Mortgage Trust,
Series 2004-BPC1, Class A3 (4)
4.467%, 10/12/41 1,302,847
1,255,000 Morgan Stanley Capital I,
Series 2003-T11, Class A3
4.850%, 06/13/41 1,251,926
Principal
Amount $ Value $
- ------------ -------------
1,780,000 Wachovia Bank Commercial Mortgage
Trust, Series 2005-C19, Class A5
4.661%, 05/15/44 1,733,175
-------------
TOTAL COMMERCIAL
MORTGAGE-BACKED
OBLIGATIONS
(Cost $5,666,013) 5,716,378
-------------
COLLATERALIZED
MORTGAGE OBLIGATIONS - 5.4%
236,280 Citigroup Mortgage Loan Trust,
Class WA2
6.500%, 06/25/31 235,349
416,947 Citigroup Mortgage Loan Trust,
Series 2003-UP3, Class A2
7.000%, 09/25/33 421,892
1,825,702 Countrywide Alternative Loan Trust,
Series 2005-65CB, Class 1A7
5.500%, 01/25/36 1,721,980
1,836,204 Countrywide Alternative Loan Trust,
Series 2007-25, Class 1A2
6.500%, 11/25/37 1,569,954
77,157 Residential Accredit Loans,
Series 1999-QS4, Class A1
6.250%, 03/25/14 78,368
21,056 Salomon Brothers Mortgage Securities
II, Series 2001-CPB1, Class A (4)
7.035%, 12/25/30 20,145
-------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $4,399,495) 4,047,688
-------------
ASSET-BACKED SECURITIES - 0.1%
68,247 Hedged Mutual Fund Fee Trust,
Series 2003-2, Class 2 (1) (4) (6) (7)
4.840%, 03/02/11 66,200
21,117 Home Equity Asset Trust,
Series 2003-1, Class B2 (1) (4)
7.349%, 06/25/33 570
18,934 Option One Mortgage Loan Trust,
Series 2002-3, Class M2 (4)
4.590%, 08/25/32 11,498
51,973 Structured Asset Investment Loan
Trust, Series 2003-BC11,
Class M4 (1) (4)
5.895%, 10/25/33 24,953
26,824 Structured Asset Investment Loan
Trust, Series 2004-1,
Class M4 (1) (4)
7.020%, 02/25/34 7,014
-------------
TOTAL ASSET-BACKED
SECURITIES
(Cost $143,327) 110,235
-------------
The accompanying notes are an integral part of the financial statements.
52
SCHRODER TOTAL RETURN FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
SHORT-TERM INVESTMENT - 1.3%
961,266 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $961,266) 961,266
-------------
TOTAL INVESTMENTS - 107.0%
(Cost $80,589,663) 80,754,873
-------------
OTHER ASSETS LESS
LIABILITIES - (7.0)% (5,302,004)
-------------
NET ASSETS - 100.0% $ 75,452,869
=============
(1) Security considered illiquid. On April 30, 2008 the value of these
securities amounted to $213,536 representing 0.3% of the net assets of the
Fund.
(2) The rate shown represents the security's effective yield at time of
purchase.
(3) Security, or portion of the security, has been pledged as collateral on
open derivative positions and mortgage dollar rolls.
(4) Variable Rate Security - Rate disclosed is as of April 30, 2008.
(5) Security is fair valued. (See Note 2 in Notes to Financial Statements.)
(6) 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, 2008, the value of these
securities amounted to $2,119,139, representing 2.8% of the net assets of
the Fund.
(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
IO - Interest Only Security
LP - Limited Partnership
MTN - Medium Term Note
TBA - To Be Announced
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2008:
NET
NUMBER UNREALIZED
OF EXPIRATION APPRECIATION
CONTRACTS VALUE DATE (DEPRECIATION)
--------- ----------- ---------- --------------
LONG:
Euro-Schatz 234 $37,935,085 Jun-08 $(488,066)
U.S. Treasury
5 Year Note 219 24,524,578 Jun-08 (183,070)
---------
(671,136)
---------
SHORT:
Euro-Bund 57 10,150,953 Jun-08 255,229
U.S. Long Bond 49 5,727,641 Jun-08 (64,832)
---------
190,397
---------
$(480,739)
=========
The accompanying notes are an integral part of the financial statements.
53
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
MUNICIPAL BONDS - 93.8%
ALABAMA - 1.1%
Alabama Private Colleges &
Universities Facilities RB,
Tuskegee University Project,
Assured Guaranty
2,000,000 4.750%, 09/01/26 2,014,200
470,000 4.000%, 09/01/13 485,331
425,000 3.950%, 09/01/12 438,145
East Alabama Health Care
Authority RB, Series B
800,000 4.500%, 09/01/11 802,488
490,000 4.250%, 09/01/10 491,490
500,000 4.000%, 09/01/09 500,475
775,000 Jefferson County, Limited Obligation
School RB Warrants, Series A
5.250%, 01/01/15 720,750
630,000 Jefferson County, Multi-Family
Housing Authority RB Warrants,
Mitchell Investments, Series A,
(LOC: Regions Bank)
5.400%, 09/01/12 643,438
1,300,000 Montgomery, Educational Building
Authority RB, Faulkner University
Project, RADIAN
5.250%, 10/01/32 1,256,554
-------------
7,352,871
ARIZONA - 4.8%
12,000,000 Arizona Health Facilities, Banner
Health RB, Series B (1)
2.677%, 01/01/37 8,940,600
260,000 Phoenix, Industrial Development
Authority RB, Hacienda Sunnyslope
Project, Series A, AMT, GNMA
4.350%, 07/20/15 259,030
19,814,119 Phoenix, Industrial Development
Authority RB, Series 2007-3, AMT,
GNMA, FNMA, FHLMC
5.625%, 05/01/39 19,546,430
180,000 Pinal County Industrial Development
Authority RB, Florence West Prison,
Series B, ACA (2)
5.250%, 10/01/08 180,059
1,175,000 Scottsdale Industrial Authority
Memorial Hospitals RB, AMBAC,
ETM
5.500%, 09/01/12 1,247,580
1,170,000 State Health Facilities Authority RB,
Phoenix Baptist Hospital & Medical
Center, MBIA, ETM
6.250%, 09/01/11 1,217,198
Principal
Amount $ Value $
- ------------ -------------
760,000 Tucson & Pima Counties Industrial
Development Authorities RB,
Series B, AMT, GNMA, FNMA,
FHLMC
4.600%, 12/01/30 769,804
-------------
32,160,701
ARKANSAS - 3.6%
570,000 Baxter County, Hospital Revenue
Authority RB, Refunding &
Improvement Project, Series A
5.375%, 09/01/14 576,213
3,565,000 Cabot, Sales & Use Tax RB, XLCA
4.300%, 12/01/31 3,436,838
340,000 Centerton, Sales & Use Tax RB
4.500%, 03/01/35 335,288
1,000,000 Drew County, Industrial
Development RB, JP Price Lumbar
Project, Series B, AMT, ADFA
5.000%, 02/01/16 1,022,890
2,730,000 Fayetteville, Sales & Use Tax RB,
Capital Improvement, Series A, FSA
3.000%, 11/01/20 2,391,671
Heber Springs, Sales & Use Tax RB,
CIFG
1,240,000 4.700%, 06/01/30 1,136,237
1,205,000 4.650%, 06/01/27 1,112,986
1,000,000 Howard County, Sales & Use Tax RB,
RADIAN
4.250%, 06/01/47 841,780
1,300,000 Little Rock, Library Construction GO,
Series A
4.250%, 03/01/23 1,306,266
10,015,000 Magnolia, Sales & Use Tax RB, CIFG
4.500%, 08/01/37 8,762,724
345,000 Scott County, Sales & Use Tax RB,
Correctional Facility Improvements
5.000%, 08/01/36 346,308
640,000 Springdale, Sales & Use Tax RB,
MBIA
4.000%, 07/01/16 661,229
1,535,000 Stuttgart, Sales & Use Tax RB,
AMBAC
4.200%, 10/01/31 1,536,090
-------------
23,466,520
CALIFORNIA - 7.1%
680,000 Benicia, Unified School District GO,
Series B, MBIA (3)
5.384%, 08/01/18 410,564
The accompanying notes are an integral part of the financial statements.
54
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
California Health Facilities Funding
Authority RB, California-
Nevada-Methodist Project
360,000 5.000%, 07/01/14 382,118
375,000 5.000%, 07/01/15 397,432
395,000 5.000%, 07/01/16 417,760
825,000 4.250%, 07/01/11 834,834
85,000 California Statewide Communities
Development Authority COP,
Kaiser Remarket, FSA, ETM
5.300%, 12/01/15 89,380
8,710,000 Contra Costa Home Mortgage
Finance RB, Multi-Family Housing,
MBIA, ETM (3)
5.852%, 09/01/17 4,693,122
50,000 Delta Counties Home Mortgage
Finance RB, Single-Family
Mortgage-Backed Securities,
Series A, AMT, MBIA, GNMA,
FNMA
5.350%, 06/01/24 50,921
575,000 Folsom, Public Financing Authority,
Special Tax Revenue, Sub-Series B
3.850%, 09/01/08 577,007
8,000,000 Gardena COP, Series B, RADIAN (2)
6.800%, 07/01/36 8,055,840
Long Beach, Financial Authority RB,
Natural Gas Purification, Series B (1)
3,940,000 3.504%, 11/15/27 2,871,472
5,750,000 3.484%, 11/15/26 4,190,600
3,000,000 3.464%, 11/15/25 2,186,400
3,045,000 Los Angeles, Community
Redevelopment Agency RB, Pooled
Financing, Series M, RADIAN (2)
6.100%, 09/01/16 3,152,397
445,000 Los Angeles, Multi-Family
Housing RB, Colorado Terrace
Project, Series H, AMT, GNMA
4.350%, 11/20/12 455,008
2,975,000 Manteca, Financing Authority
Sewer RB, Series B, MBIA
5.000%, 12/01/33 3,015,311
474,608 Mountain Valley Unified School
District RB, Flexfund Program
4.250%, 05/01/22 473,004
2,544,967 Oak Grove Union School District RB,
Flexfund Program
4.750%, 08/01/27 2,529,875
442,625 Orland Unified School District COP,
Flexfund Program
5.000%, 08/01/27 428,762
1,577,266 Palo Verde Unified School
District COP, Flexfund Program
4.800%, 09/01/27 1,588,133
Principal
Amount $ Value $
- ------------ -------------
1,484,854 Paso Robles Joint Unified School
District RB, Flexfund Program
4.300%, 05/01/22 1,484,676
25,000 Placer County, Water Agency RB,
Middle Fork Project
3.750%, 07/01/12 24,751
699,701 Rohnerville School District COP,
Flexfund Program
4.500%, 02/01/23 685,616
45,000 Sacramento County, Sacramento Main
Detention Center COP, MBIA, ETM
5.500%, 06/01/10 46,493
10,000 Sacramento County, Sanitation
Authority RB, ETM
5.125%, 12/01/10 10,018
103,000 San Bernardino County, Transportation
Authority RB, Series A, FGIC, ETM
6.000%, 03/01/10 107,850
175,000 Southern California, Public Power
Authority RB, Palo Verde Project,
Series A, ETM
5.000%, 07/01/17 175,333
3,900,000 State of California GO, Series M
4.900%, 10/01/13 3,904,329
3,430,000 Stockton, United Christian
Schools COP, Mandatory Put,
(LOC: Pacific Capital Bank) (4)
4.300%, 04/03/17 3,430,000
520,000 Valley Center, Unified School
District GO, Capital Appreciation,
Series A, MBIA (3)
4.847%, 09/01/17 317,876
-------------
46,986,882
COLORADO - 3.7%
3,865,000 Adonea, Metropolitan District
No. 2 RB, Series B,
(LOC: Compass Bank)
4.375%, 12/01/15 3,912,192
Aspen Grove Business Improvement
District GO, RADIAN
410,000 5.500%, 12/01/12 433,235
450,000 5.500%, 12/01/14 479,074
505,000 5.000%, 12/01/16 518,453
1,115,000 4.750%, 12/01/21 1,082,353
1,390,000 4.625%, 12/01/25 1,296,272
590,000 Beacon Point, Metropolitan
District RB, Series B,
(LOC: Compass Bank)
4.375%, 12/01/15 595,398
1,000,000 Colorado Educational & Cultural
Facilities Authority RB, Avenue
Maria School Project, RADIAN
4.850%, 12/01/25 963,280
The accompanying notes are an integral part of the financial statements.
55
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
5,000,000 Denver Health & Hospital
Authority RB, Series B (1)
3.161%, 12/01/33 3,475,250
25,000 Denver, City & County Airport RB,
Series D, AMT
7.750%, 11/15/13 27,828
Fort Lewis, College Board RB,
Series D, FGIC (2) (6)
920,000 5.100%, 10/01/11 949,900
885,000 5.100%, 10/01/12 912,346
1,450,000 High Plains, Metropolitan District RB,
(LOC: Compass Bank)
4.375%, 12/01/15 1,477,144
500,000 Interlocken Metropolitan District GO,
Series A, RADIAN
5.750%, 12/15/11 524,005
1,450,000 Maher Ranch, Metropolitan District
No. 4 GO, RADIAN
4.625%, 12/01/17 1,438,545
600,000 State Educational & Cultural Facilities
Authority RB, Charter School,
Littleton, CIFG
4.300%, 01/15/26 551,262
415,000 State Educational & Cultural Facilities
Authority RB, Charter School, Peak
to Peak, XLCA
3.000%, 08/15/09 413,884
365,000 State Educational & Cultural Facilities
Authority RB, Parker Core Charter
School, XLCA
3.500%, 11/01/14 358,744
2,000,000 State Health Facilities Authority RB,
Catholic Health, Series A, ETM
5.500%, 03/01/22 2,124,600
1,590,000 State Health Facilities Authority RB,
Poudre Valley Health Care, Series F
5.000%, 03/01/25 1,508,338
30,000 State Health Facilities Authority RB,
Series A, ETM
5.350%, 11/01/16 30,516
Teller County COP, Assured Guaranty
400,000 5.000%, 12/01/24 418,448
120,000 4.550%, 12/01/18 123,481
310,000 4.500%, 12/01/17 320,645
300,000 4.400%, 12/01/16 311,139
150,000 4.150%, 12/01/13 155,279
190,000 3.500%, 12/01/09 192,909
-------------
24,594,520
CONNECTICUT - 0.5%
50,000 Greenwich, New Public Housing
Authority RB
5.250%, 05/01/08 50,005
Principal
Amount $ Value $
- ------------ -------------
70,000 State Health & Educational
Facility RB, Danbury Hospital, ETM
7.875%, 07/01/09 72,348
2,000,000 State Health & Educational
Facility RB, Saint Francis Hospital
Medical Center, Series D, RADIAN
5.500%, 07/01/17 2,085,580
1,100,000 State Resources Recovery
Authority RB, Middle Connecticut
System, Series A,
Pre-Refunded @ 100, MBIA (7)
5.500%, 11/15/08 1,114,080
-------------
3,322,013
DELAWARE - 0.8%
New Castle County, Newark Charter
School Income Project RB
365,000 5.000%, 09/01/17 354,638
1,000,000 5.000%, 09/01/22 920,020
255,000 4.750%, 09/01/13 254,271
150,000 4.750%, 09/01/15 146,631
825,000 State Economic Development
Authority RB, Delmarva Power &
Light, Series D, AMT
5.650%, 07/01/28 867,355
State Housing Authority RB,
Single-Family Mortgage,
Series D-2 (2)
90,000 5.000%, 01/01/09 91,024
510,000 5.000%, 07/01/09 518,272
560,000 5.000%, 07/01/10 573,546
1,870,000 Wilmington, Multi-Family
Housing RB, Market Street Mews,
AMT, GNMA
5.450%, 09/20/22 1,892,908
-------------
5,618,665
DISTRICT OF COLUMBIA - 0.2%
585,000 District of Columbia RB,
Enterprise Zone-819 7th Street,
Mandatory Put, AMT,
(LOC: Branch Banking & Trust) (4)
3.600%, 10/01/09 593,740
500,000 District of Columbia GO, Series B,
FSA, ETM
5.500%, 06/01/14 520,200
Hospital RB, Medlantic Healthcare
Group, Series A, MBIA, ETM
100,000 5.750%, 08/15/14 100,918
410,000 5.750%, 08/15/26 412,419
-------------
1,627,277
The accompanying notes are an integral part of the financial statements.
56
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
FLORIDA - 6.4%
1,000,000 Brevard County School Board COP,
Series B, FGIC
5.000%, 07/01/20 1,016,080
6,235,000 Capital Projects Finance Authority RB,
Genridge on Palmer Ranch, Series A,
Pre-Refunded @ 102 (7)
8.000%, 06/01/12 7,495,967
1,300,000 Collier County, Industrial Development
Authority RB, Naples Community
Hospital Project, Mandatory Put,
(LOC: Bank of America NA) (4)
4.650%, 09/30/19 1,306,071
500,000 County of Seminole RB, MBIA
6.000%, 10/01/09 513,770
387,566 Dade County, Single-Family Housing
Finance Authority RB, Series B-1,
AMT, GNMA, FNMA
6.100%, 04/01/27 404,235
475,000 Florida State, Jacksonville
Transportation Authority GO, ETM
9.200%, 01/01/15 588,140
1,735,000 Gulf Breeze, Local Government RB,
FGIC, Mandatory Put (1) (4)
4.000%, 12/01/15 1,716,758
2,275,000 Highlands County, Health Facilities
Authority RB, Adventist Health
Systems, Series D,
Pre-Refunded @ 100 (7)
5.375%, 11/15/13 2,522,338
500,000 Hillsborough County School
Board COP, Series B, MBIA
5.000%, 07/01/18 524,420
575,000 Hollywood Community
Redevelopment Agency RB,
Beach CRA
5.125%, 03/01/14 590,721
140,000 Jacksonville, Electric Authority RB,
ETM
5.375%, 07/01/12 147,497
10,000 Jacksonville, Electric Authority RB,
Third Installment, ETM
6.800%, 07/01/12 10,846
300,000 Jacksonville, Health Facilities RB,
Daughters of Charity, MBIA,
ETM (5)
5.000%, 11/15/15 300,537
1,950,000 Lake County School Board COP,
Series B, AMBAC
5.000%, 06/01/19 2,043,542
1,255,000 Manatee County, Housing Finance
Authority RB, Series A, AMT,
GNMA, FNMA, FHLMC
4.550%, 09/01/17 1,270,562
Principal
Amount $ Value $
- ------------ -------------
485,000 Miami Special RB, MBIA (3)
4.964%, 01/01/15 324,451
Miami-Dade County, Public
Service RB, Unincorporated
Municipal Service Area, Public
Improvements, Series A, XLCA
280,000 4.750%, 04/01/27 272,826
1,115,000 4.700%, 04/01/26 1,089,087
1,110,000 4.625%, 04/01/24 1,088,510
675,000 4.600%, 04/01/23 665,375
8,045,000 Orange County Health Facilities
Authority RB,
Adventist Health Systems,
Pre-Refunded @ 101 (7)
5.625%, 11/15/12 8,972,910
60,000 Orange County, Tourist Division RB,
AMBAC, ETM
6.000%, 10/01/16 60,437
1,060,000 Orange County, Tourist Division RB,
Series A, AMBAC, ETM
6.250%, 10/01/13 1,131,115
1,260,000 Orlando & Orange County,
Expressway Authority RB, Sr. Lien,
AMBAC, ETM
7.625%, 07/01/18 1,588,482
1,300,000 Osceola County, School Board
COP, Series A,
Pre-Refunded @ 101, AMBAC (7)
5.250%, 06/01/12 1,418,547
600,000 Palm Beach County Solid Waste
Authority RB, Series A, AMBAC
6.000%, 10/01/08 610,164
280,000 Pinellas County, Housing Finance
Authority RB, Multi-County
Program, Series A-3, AMT,
GNMA, FNMA
4.000%, 03/01/25 280,179
2,615,000 Port Everglades Authority RB, ETM
7.125%, 11/01/16 3,021,136
120,000 Tampa, Allegany Health System RB,
Saint Anthony, MBIA, ETM
5.125%, 12/01/15 121,603
65,000 Tampa, Allegany Health System RB,
Saint Joseph, MBIA, ETM
5.125%, 12/01/23 65,868
340,000 Tampa, Allegany Health System RB,
Saint Mary's, MBIA, ETM
5.125%, 12/01/23 344,627
850,000 Volusia County, Educational
Facilities
Authority RB, Embry Riddle,
RADIAN (1)
5.000%, 10/15/25 839,265
----------
42,346,066
The accompanying notes are an integral part of the financial statements.
57
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
GEORGIA - 0.5%
1,890,000 Cobb County, Kennestone Hospital
Authority RB, Capital Appreciation
Certificates, Series 86A, MBIA,
ETM (3)
4.501%, 08/01/15 1,242,807
75,000 Crisp County Cordele Industrial
Development Authority RB, Cavelier
Industries Project, AMT,
(LOC: First Commercial Bank)
5.250%, 04/01/09 75,067
45,000 Fulco, Hospital Authority RB,
Saint Joseph Hospital, ETM
5.375%, 10/01/09 45,115
1,650,000 Kennesaw, Urban Redevelopment
Agency RB, City Hall Expansion
Project
3.950%, 01/01/19 1,655,330
360,000 Municipal Electric Authority
Power RB, Capital Appreciation,
Series Q, MBIA (3)
3.688%, 01/01/12 285,563
---------
3,303,882
IDAHO - 0.3%
2,405,000 State Housing & Finance
Association RB, Series H,
Class III, AMT
5.000%, 01/01/28 2,246,799
130,000 State Housing & Finance
Association RB, Single-Family
Mortgage, Series D, Class III, AMT
5.400%, 07/01/21 131,129
---------
2,377,928
ILLINOIS - 7.2%
3,000,000 Bartlett, Quarry Redevelopment TA,
Employment Project (2)
5.600%, 01/01/23 2,875,290
4,460,000 Bolingbrook, Sales Tax RB (3)
5.750%, 01/01/15 4,472,310
1,178,000 Bolingbrook, Special Services Areas
Special Tax, Reference 2001-1-2-3 &
2002-1, MBIA
4.000%, 03/01/18 1,161,178
510,000 Calhoun & Greene Counties,
Community School District
No. 40 GO
4.700%, 01/01/16 523,219
912,000 Cary, Special Tax, Special Service
Area No. 2, RADIAN
4.400%, 03/01/16 917,600
Principal
Amount $ Value $
- ------------ -------------
1,750,000 Chicago, Increment Allocation
Revenue, Diversey Narragansett
Project COP
7.460%, 02/15/26 1,779,435
2,000,000 Chicago, Kingsbury Redevelopment
Project TAN, Series A
6.570%, 02/15/13 2,010,760
1,000,000 Chicago, Lake Shore East SA
6.750%, 12/01/32 1,009,950
Cook County School District
No. 159 GO, FSA (3)
315,000 4.645%, 12/01/12 269,180
525,000 4.453%, 12/01/11 468,557
350,000 4.063%, 12/01/09 335,755
3,500,000 Cortland, Special Tax, Sheaffer
Systems Project (5)
5.500%, 03/01/17 3,299,940
825,000 Granite City Industrial Development
Authority RB, Carron Industry
Project, AMT, (LOC: First Bank)
4.875%, 04/01/17 778,049
1,000,000 Huntley, Special Tax, Special Service
Area No. 7, Assured Guaranty
5.100%, 03/01/28 1,025,680
1,143,000 Huntley, Special Tax, Special Service
Area No. 8, Assured Guaranty
4.600%, 03/01/17 1,185,131
1,880,000 Huntley, Special Tax, Special Service
Area No. 9, Assured Guaranty
5.100%, 03/01/28 1,928,278
1,205,000 Huntley, Special Tax, Special Service
Area No. 10, Assured Guaranty
5.100%, 03/01/29 1,232,450
1,156,000 Lakemoor Village, Special Tax,
RADIAN
4.550%, 03/01/16 1,151,411
2,264,000 Pingree Grove, Special Services Area,
Cambridge Lakes Project,
Series 05-1
5.250%, 03/01/15 2,191,869
590,000 Round Lake, Special Tax, Lakewood
Grove, Assured Guaranty
4.150%, 03/01/17 601,529
850,000 State Educational Facilities
Authority RB, Capital Appreciation,
ETM (3)
5.190%, 07/01/14 572,781
740,000 State Educational Facilities
Authority RB, Capital Appreciation,
Pre-Refunded @ 57.17 (3) (7)
6.611%, 07/01/09 392,592
1,120,000 State Financial Authority RB, Medical
District Common Project, Series A,
CIFG
4.125%, 09/01/18 1,091,586
The accompanying notes are an integral part of the financial statements.
58
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
850,000 State Financial Authority RB,
Metropolis Project
5.000%, 12/01/24 812,116
3,750,000 State Financial Authority RB,
Multi-Family Housing Authority,
Liberty Project, Series A,
(LOC: Harris NA) (2)
5.530%, 10/01/22 3,824,100
230,000 State Financial Authority RB,
Multi-Family Housing Authority,
Liberty Project, Series B,
(LOC: Harris NA) (2)
5.570%, 10/01/11 238,160
2,925,000 State Health Facilities Authority, RB,
Hinsdale Hospital, Series A, ETM
6.950%, 11/15/13 3,282,932
2,750,000 State of Illinois GO, FGIC
5.500%, 02/01/16 2,941,400
800,000 State GO, 1st Series, MBIA
5.500%, 08/01/19 851,280
535,000 Will County, Community Consolidated
School District GO, Alternative
Revenue Source Larway
5.625%, 12/01/23 566,110
Yorkville United City Sales Tax RB,
Kendall Marketplace Project
420,000 6.000%, 01/01/27 377,769
3,755,000 6.000%, 01/01/26 3,387,723
----------
47,556,120
INDIANA - 3.0%
Avon Community School Building RB,
First Mortgage, AMBAC
1,305,000 4.750%, 07/15/23 1,319,472
5,815,000 4.625%, 07/15/22 5,860,183
Brownsburg 1999 School Building RB,
First Mortgage, Series B, FSA
60,000 4.250%, 07/15/09 61,483
1,050,000 4.750%, 07/15/24 1,071,137
1,100,000 4.750%, 07/15/25 1,121,307
Gary, Sanitation District, Special
Taxing District, RADIAN
250,000 5.000%, 02/01/12 257,738
270,000 5.000%, 02/01/13 279,061
25,000 Indianapolis, Industrial Utilities
District RB, ETM
7.000%, 06/01/08 25,102
1,685,000 Indianapolis, Local Public
Improvements RB, Glendale Mall
Project, Series G (2)
5.640%, 08/01/17 1,715,953
500,000 Jasper, Hospital Authority RB,
Memorial Hospital Center Project,
RADIAN
5.500%, 11/01/17 520,445
Principal
Amount $ Value $
- ------------ -------------
Maconaquah, School District RB,
Energy Management Financing
Project
286,756 5.000%, 01/01/12 297,983
301,093 5.000%, 01/01/13 313,624
316,148 5.000%, 01/01/14 329,410
261,339 4.750%, 01/01/10 267,311
273,752 4.750%, 01/01/11 281,789
251,287 4.000%, 01/01/09 253,006
Munster, Municipal Center RB,
First Mortgage
400,000 5.000%, 07/15/24 405,920
700,000 4.875%, 07/15/21 709,345
445,000 4.700%, 07/15/17 453,424
95,000 State Health Facility Financing
Authority RB, Ancilla Systems,
MBIA, ETM
5.250%, 07/01/22 96,072
State Health Facility Financing
Authority RB, Methodist Hospital,
Series A, AMBAC, ETM
80,000 5.750%, 09/01/11 81,385
360,000 5.750%, 09/01/15 366,361
3,980,000 University of Southern Indiana RB,
Auxiliary Systems, Series A,
AMBAC
5.000%, 10/01/11 4,115,479
10,000 Wells County, Hospital Authority RB,
ETM
7.250%, 04/01/09 10,309
----------
20,213,299
IOWA - 0.7%
Coralville COP, Series D
500,000 5.250%, 06/01/15 528,480
300,000 5.000%, 06/01/12 311,883
200,000 5.000%, 06/01/13 208,572
275,000 5.000%, 06/01/14 286,698
75,000 State Financial Authority RB, Mercy
Health System, Series V, FSA, ETM
5.250%, 08/15/27 75,839
1,345,000 Tobacco Settlement Authority RB,
Asset-Backed, Series B,
Pre-Refunded @ 101 (7)
5.300%, 06/01/11 1,435,371
Xenia Rural Water Distribution RB,
CIFG
1,100,000 4.500%, 12/01/31 923,615
1,000,000 4.500%, 12/01/41 800,610
----------
4,571,068
The accompanying notes are an integral part of the financial statements.
59
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- --------------- -------------
KANSAS - 0.5%
175,000 Fredonia, Temporary Notes GO,
Series 1
4.375%, 08/01/10 175,579
2,750,000 Junction City GO, Temporary Notes,
Series B (2)
6.000%, 06/01/08 2,756,683
175,000 Shawnee, Multi-Family Housing
Authority RB, Thomasbrook
Apartments, Series A, AMT, FNMA
5.250%, 10/01/14 176,892
-------------
3,109,154
KENTUCKY - 0.3%
1,725,000 Marshall County, Public Property
Corporation RB, Courthouse
Facility Project
5.250%, 03/01/23 1,845,198
-------------
LOUISIANA - 3.5%
180,000 Calcasieu Parish, Public Transportation
Authority RB, Single-Family
Mortgage, Series A, AMT, GNMA,
FNMA
5.850%, 10/01/32 182,117
4,954,488 Denham Springs-Livingston, Housing
& Mortgage Financial Authority RB,
Mortgage-Backed Securities
Program, GNMA, FNMA, FHLMC
5.000%, 11/01/40 4,873,086
4,499,000 Houma-Terrebonne, Public Financing
Authority RB, Mortgage-Backed
Securities Program, GNMA, FNMA,
FHLMC
5.150%, 12/01/40 4,430,390
425,000 Local Government RB, Environmental
Facilities & Community Development
Authority, Series 2003-D,
Pre-Refunded @ 102 (7)
8.500%, 06/01/13 535,334
2,535,000 State Housing Financial Agency RB,
Multi-Family Housing Revenue,
Plantation Apartment Project,
Series A, FNMA, Mandatory Put (4)
4.100%, 04/15/17 2,502,222
2,250,000 State Housing Financial Agency RB,
Section 8-202 Project, Series A
4.750%, 12/01/31 2,223,158
1,135,000 State Housing Financial Agency RB,
Single-Family Home Ownership,
Program, Series A2, AMT,
GNMA, FNMA
5.800%, 06/01/36 1,164,124
Principal
Amount $ Value $
- --------------- -------------
1,890,000 State Housing Financial Agency RB,
Single-Family Housing Revenue,
Home Ownership Program,
Series B-2, AMT, GNMA, FNMA,
FHLMC
4.600%, 12/01/14 1,919,560
1,050,000 State Public Facilities Authority RB,
FHA Insured Mortgage, Baton Rouge
General Medical Center, MBIA
5.250%, 07/01/24 1,078,854
980,000 State Public Facilities Authority RB,
Pennington Medical Foundation
Project
4.000%, 07/01/11 993,955
4,800,000 State Public Facilities Authority RB,
Tulane University Project,
Series A-2, MBIA (1)
2.753%, 02/15/36 3,600,240
-------------
23,503,040
MARYLAND - 0.2%
Annapolis, Economic Development
RB, Saint Johns College Facilities,
Series A
115,000 4.375%, 10/01/16 111,877
100,000 4.250%, 10/01/13 99,710
525,000 4.500%, 10/01/21 485,961
Annapolis, Economic Development
RB, Saint Johns College Facilities,
Series B
225,000 4.375%, 10/01/15 222,048
255,000 4.375%, 10/01/17 244,522
210,000 4.300%, 10/01/14 208,020
165,000 4.250%, 10/01/11 166,828
180,000 4.250%, 10/01/12 180,498
-------------
1,719,464
MASSACHUSETTS - 1.8%
230,000 State Development Finance
Agency RB, Curry College,
Series A, ACA
3.875%, 03/01/15 217,782
465,000 State Development Finance
Agency RB, Dexter School Project
4.500%, 05/01/27 439,420
545,000 State Development Finance
Agency RB, Seven Hills Foundation
& Affiliates, RADIAN
4.500%, 09/01/16 540,117
515,000 State Health & Educational Facilities
Authority RB, Cape Cod Healthcare,
Series C, RADIAN
5.250%, 11/15/17 528,550
The accompanying notes are an integral part of the financial statements.
60
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- --------------- -------------
760,000 State Health & Educational Facilities
Authority RB, Mass General
Hospital, Series F, AMBAC
6.250%, 07/01/12 810,426
932,000 State Health & Educational
Facilities Authority RB, Nichols
College Issue, Series C
6.000%, 10/01/17 959,149
1,610,000 State Housing Financial Agency GO,
HUD, ETM (3)
6.930%, 02/01/23 580,131
480,000 State Housing Financial Authority RB,
Series D
4.200%, 12/01/10 493,253
1,500,000 State Water Resources Authority RB,
Series C, FGIC
5.250%, 12/01/15 1,618,725
5,250,000 State GO, Consolidation Loan,
Series A,
Pre-Refunded @ 100 (7)
5.125%, 01/01/13 5,654,198
-------------
11,841,751
MICHIGAN - 1.4%
2,710,000 Kalamazoo, Hospital Finance
Authority RB, Borgess Medical
Center, Series A, AMBAC, ETM
5.625%, 06/01/14 2,890,025
10,000 State Hospital Finance Authority RB,
Charity Obligatory Group,
Series A, ETM
5.000%, 11/01/19 10,257
45,000 State Hospital Finance Authority RB,
Daughters of Charity Hospital, ETM
5.250%, 11/01/10 45,096
10,000 State Hospital Finance Authority RB,
Mercy Health Services, MBIA, ETM
5.750%, 08/15/26 10,117
45,000 State Hospital Finance Authority RB,
Mercy Health Services, Series Q,
AMBAC, ETM
5.375%, 08/15/26 45,211
70,000 State Hospital Finance Authority RB,
Saint John Hospital, AMBAC, ETM
5.250%, 05/15/26 70,082
State Hospital Finance Authority RB,
Saint Johns Hospital, Series A,
AMBAC, ETM
450,000 6.000%, 05/15/13 456,489
25,000 5.750%, 05/15/16 25,140
865,000 State Strategic Fund, Solid Waste
Disposal RB, Limited Obligatory
Waste Management, AMT
4.500%, 12/01/13 829,457
Principal
Amount $ Value $
- --------------- -------------
5,700,000 State University RB, Series B,
AMBAC (1)
2.684%, 02/15/37 4,560,285
-------------
8,942,159
MINNESOTA - 0.4%
795,000 Burnsville, Hospital System RB,
Fairview Community Hospitals,
ETM (3)
4.832%, 05/01/12 625,259
15,000 Coon Rapids, Hospital RB,
Health Central, ETM
7.625%, 08/01/08 15,172
1,930,790 Minneapolis Saint Paul, Housing
Financial Board RB, Single-Family
Mortgage, Mortgage-Backed City
Living, Series A-5,
GNMA, FNMA, FHLMC
5.450%, 04/01/27 1,996,553
46,000 Minneapolis, Community
Development Agency RB,
BIG, ETM
8.875%, 11/01/11 51,474
-------------
2,688,458
MISSISSIPPI - 0.5%
310,000 Horn Lake SA, Desoto Commons,
AMBAC
5.000%, 04/15/17 328,039
Meridian, Housing Authority RB,
Series A, AMT (5)
1,200,000 5.000%, 09/01/15 1,238,460
655,000 5.000%, 09/01/25 632,127
1,000,000 Perry County, Pollution Control
RB, ETM
5.200%, 10/01/12 1,090,830
-------------
3,289,456
MISSOURI - 4.6%
1,000,000 Andrew County, Region III School
District Lease COP, Refinance &
Improvement, FSA
4.375%, 03/01/20 1,014,090
690,000 Boone County, Industrial Development
Authority RB, Otscon Project,
Mandatory Put, AMT, (LOC: Boone
County National Bank) (1) (4)
4.750%, 05/01/12 657,121
825,000 Brentwood, Tax Increment TA,
Brentwood Pointe Project
4.500%, 05/01/23 775,186
715,000 Brentwood, Tax Increment TA,
Brentwood Square Project
4.500%, 05/01/22 727,734
The accompanying notes are an integral part of the financial statements.
61
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- --------------- -------------
1,430,000 Hannibal, Industrial Development
Authority Tax, Stardust-
Munger Project
4.700%, 04/15/23 1,410,323
Ozark Centre, Transportation
Development District RB
175,000 5.375%, 09/01/32 154,376
200,000 4.875%, 09/01/24 175,152
Raytown Annual, Appropriation-
Supported Tax RB, Live
Redevelopment Plan Project 1
1,750,000 5.125%, 12/01/25 1,778,525
250,000 5.000%, 12/01/13 262,933
1,055,000 5.000%, 12/01/14 1,109,280
765,000 5.000%, 12/01/16 799,723
1,675,000 5.000%, 12/01/21 1,706,775
1,000,000 5.000%, 12/01/22 1,016,020
5,050,000 4.750%, 12/01/27 4,868,806
Ritenhour School District Educational
Facilities Authority RB
400,000 5.000%, 03/01/22 386,028
135,000 4.750%, 03/01/16 133,861
140,000 4.750%, 03/01/17 137,320
130,000 4.625%, 03/01/15 129,466
110,000 4.500%, 03/01/12 110,076
115,000 4.500%, 03/01/13 115,030
80,000 4.375%, 03/01/10 80,168
110,000 4.375%, 03/01/11 110,119
50,000 4.250%, 03/01/09 50,127
State Development Finance Board
Infrastructure Facilities RB, Branson
Landing Project, Series A
180,000 4.250%, 06/01/13 177,889
100,000 4.125%, 06/01/12 98,923
125,000 State Development Finance Board
Infrastructure Facilities RB, Branson,
Series A
5.375%, 12/01/22 121,730
310,000 State Development Finance Board
Infrastructure Facilities TA, Drumm
Farm Project, Series D
4.250%, 04/01/17 302,014
430,000 State Development Finance Board
Infrastructure Facilities RB, Drumm
Farm Project
4.625%, 03/01/20 421,907
500,000 State Development Finance Board
Infrastructure Facilities TA, Triumph
Foods Project, Series A
5.250%, 03/01/25 506,890
Principal
Amount $ Value $
- --------------- -------------
State Development Finance Board TA,
Eastland Center Project, Series A
455,000 5.000%, 04/01/11 469,938
825,000 5.000%, 04/01/12 856,144
395,000 5.000%, 04/01/17 408,043
550,000 5.000%, 04/01/20 558,679
State Development Finance Board TA,
Hartman Heritage Project, Series B
510,000 5.000%, 04/01/18 522,893
360,000 5.000%, 04/01/20 365,681
State Development Finance Board TA,
Santa Fe Project, Series C (2)
2,000,000 6.096%, 04/01/23 2,109,840
560,000 5.746%, 04/01/16 580,166
530,000 5.696%, 04/01/15 549,605
500,000 5.646%, 04/01/14 518,685
475,000 5.515%, 04/01/13 491,112
325,000 State Health & Educational Facilities
Authority RB, Maryville University
of Saint Louis Project,
Pre-Refunded @ 100 (7)
6.750%, 06/15/10 352,872
1,455,000 State Health & Educational Facilities
Authority RB, Park Lane Medical
Center, Series A, MBIA, ETM
5.600%, 01/01/15 1,551,452
170,000 State Housing Development
Community RB, Single-Family
Homeowner Loan Program,
Series A-1, GNMA
5.000%, 03/01/17 173,408
1,725,000 State Transportation Sales Tax RB,
Transportation Development District,
Interstates 470 & 350, Refinancing &
Improvement, RADIAN
4.600%, 06/01/29 1,699,159
-------------
30,545,269
MONTANA - 1.0%
6,995,000 Forsyth, Pollution Control RB,
Northwestern Colstrip, AMBAC
4.650%, 08/01/23 6,635,107
165,000 State Board of Investment RB, Payroll
Tax Workers Compensation Project,
MBIA, ETM
6.875%, 06/01/11 171,950
-------------
6,807,057
NEBRASKA - 0.2%
125,000 Nebhelp RB, Jr-Sub-Series A-6, AMT,
MBIA
6.400%, 06/01/13 125,775
The accompanying notes are an integral part of the financial statements.
62
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
5,000 Scotts Bluff County, Hospital
Authority No. 1 RB, Regional
West Medical Center
6.375%, 12/15/08 5,014
State Educational Finance Authority
RB, Dana College, Series A
200,000 4.500%, 03/15/13 186,188
195,000 4.500%, 03/15/14 178,600
180,000 4.350%, 03/15/12 169,558
State Educational Finance Authority
RB, Dana College, Series D
170,000 5.400%, 03/15/25 144,944
240,000 5.200%, 03/15/20 212,076
50,000 4.950%, 03/15/16 45,508
50,000 4.850%, 03/15/15 45,923
45,000 4.700%, 03/15/13 42,266
50,000 4.700%, 03/15/14 46,281
45,000 4.550%, 03/15/12 42,696
40,000 4.450%, 03/15/11 38,433
------------
1,283,262
NEVADA - 0.2%
1,394,430 Rural Housing Authority RB,
Single-Family Housing, Series A,
AMT, GNMA, FNMA
5.250%, 08/01/38 1,431,369
------------
NEW HAMPSHIRE - 0.4%
2,245,000 Claremont GO
6.000%, 08/15/17 2,370,855
185,000 State Health & Education
Facilities Authority RB,
Speare Memorial Hospital
5.000%, 07/01/12 188,752
------------
2,559,607
NEW JERSEY - 4.4%
150,000 Burlington County Bridge
Commission RB, Government
Leasing Program,
Pre-Refunded @ 100 (7)
5.250%, 08/15/12 163,932
Health Care Facilities RB, Allegany
Health, Our Lady of Lourdes,
MBIA, ETM
30,000 5.200%, 07/01/18 31,351
170,000 5.125%, 07/01/13 177,114
80,000 Health Care Facilities RB, Community
Memorial Hospital Toms River, ETM
6.750%, 07/01/09 82,355
Principal
Amount $ Value $
- ------------ ------------
20,000 Health Care Facilities RB,
Mercer Medical Center, ETM
7.000%, 07/01/08 20,163
Lake Como Boro GO
20,000 4.400%, 07/15/08 20,076
38,000 4.400%, 07/15/09 38,735
40,000 4.400%, 07/15/10 41,191
40,000 4.400%, 07/15/11 41,399
40,000 4.400%, 07/15/12 41,400
40,000 4.400%, 07/15/13 41,408
40,000 4.400%, 07/15/14 41,312
40,000 4.400%, 07/15/15 41,125
40,000 4.400%, 07/15/16 40,948
4,000,000 State Economic Development
Authority RB, First Mortgage
Far Hills Country
5.500%, 09/01/24 3,765,440
855,000 State Economic Development
Authority RB, Wanaque
Convalescent Center Project,
Series A, (LOC: Sovereign Bank)
3.750%, 02/15/12 856,069
1,120,000 State Health Care Facilities Authority
RB, Catholic Health East Issue,
Series E (1)
2.854%, 11/15/33 823,256
State Higher Education Assistance
Authority RB, Series A, AMT,
AMBAC
990,000 5.200%, 06/01/13 991,782
1,055,000 4.950%, 06/01/10 1,056,677
16,270,000 Tobacco Settlement Authority RB
6.375%, 06/01/32 18,249,896
1,500,000 Unified County, Industrial Pollution
Control RB, American Cyanamid
(GA: Wyeth)
5.800%, 09/01/09 1,535,625
Woodlynne GO
40,000 4.625%, 08/01/08 40,230
50,000 4.625%, 08/01/09 51,276
50,000 4.625%, 08/01/10 52,010
50,000 4.625%, 08/01/11 52,364
60,000 4.625%, 08/01/12 63,033
60,000 4.625%, 08/01/13 63,260
60,000 4.625%, 08/01/14 62,719
70,000 4.625%, 08/01/15 72,955
70,000 4.625%, 08/01/16 72,751
70,000 4.625%, 08/01/17 72,295
72,000 4.625%, 08/01/18 74,118
------------
28,778,265
The accompanying notes are an integral part of the financial statements.
63
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
NEW MEXICO - 0.0%
45,000 State Mortgage Finance Authority RB,
Single-Family Mortgage,
Series B-2, AMT, GNMA, FNMA, FHLMC
5.550%, 01/01/30 45,815
------------
NEW YORK - 4.0%
3,600,000 Amherst, Industrial Development
Agency RB, Civic Facilities, Daemen
College Project, Series A,
Pre-Refunded @ 102 (7)
6.125%, 10/01/11 4,061,952
Freeport GO
100,000 4.500%, 08/01/09 102,674
100,000 4.500%, 08/01/10 104,056
100,000 4.500%, 08/01/11 104,855
100,000 4.500%, 08/01/12 104,911
125,000 4.500%, 08/01/13 131,662
125,000 4.500%, 08/01/14 131,636
125,000 4.500%, 08/01/15 130,939
125,000 4.500%, 08/01/16 130,376
150,000 Hempstead Town, Industrial
Development Agency RB, Adelphi
University Civic Facilities
5.250%, 02/01/13 154,899
500,000 Highland Hospital RB, Rochester, GO
5.150%, 08/01/08 (2) 501,635
115,000 Metropolitan Transportation
Authority RB, Commuter Facilities,
Series B, AMBAC, ETM
5.125%, 07/01/24 117,052
Metropolitan Transportation
Authority RB, Commuter Facilities,
Series D, MBIA, ETM
45,000 5.125%, 07/01/22 47,765
470,000 5.000%, 07/01/12 488,184
25,000 4.900%, 07/01/10 25,296
75,000 Metropolitan Transportation
Authority RB, Dedicated Tax Fund,
Series A, FGIC, ETM
5.250%, 04/01/14 75,896
Metropolitan Transportation
Authority RB, Grand Central
Terminal - 2, AMT, FSA, ETM
50,000 5.500%, 07/01/12 50,126
55,000 5.400%, 07/01/11 55,133
100,000 Metropolitan Transportation
Authority RB, Service Contract,
Series Q, AMBAC, ETM
5.125%, 07/01/12 101,185
375,000 Metropolitan Transportation
Authority RB, Service Contract,
Series R, ETM
5.500%, 07/01/11 380,629
Principal
Amount $ Value $
- ------------ ------------
State Dormitory Authority RB,
Concord College Nursing Home,
GNMA
810,000 4.150%, 08/15/17 803,115
3,605,000 5.500%, 02/15/30 3,718,449
State Dormitory Authority RB, Non
State Supported Debt, Cabrini College
Westchester, GNMA
4,800,000 4.800%, 08/15/25 4,869,264
4,500,000 5.200%, 02/15/41 4,659,480
1,550,000 State Dormitory Authority RB, School
District Financing Program,
Series D, MBIA
5.500%, 10/01/17 1,663,848
200,000 State Environmental Facilities RB,
Corporate Pollution Control, Water
Revolving Fund, Series D, ETM
5.000%, 06/15/12 208,484
State Housing Finance Agency RB,
Capital Green Apartments,
Series B, FNMA
500,000 4.375%, 11/15/17 489,075
1,000,000 4.200%, 11/15/14 995,970
960,000 State Housing Finance Agency RB,
Multi-Family Housing, Highland
Avenue Apartments, Series A,
AMT, SONYMA
4.700%, 02/15/17 981,158
40,000 State Urban Development RB,
Capital Appreciation, MBIA (3)
2.261%, 01/01/11 34,818
55,000 State Urban Development RB, Capital
Appreciation, Series O, FSA (3)
2.814%, 01/01/11 47,967
150,000 State Urban Development RB,
Capital Appreciation (3)
3.005%, 01/01/11 131,592
500,000 Triborough Bridge & Tunnel
Authority RB, General Purpose,
Series A, MBIA, ETM
5.000%, 01/01/24 502,205
590,000 Triborough Bridge & Tunnel
Authority RB, General Purpose,
Series A, ETM
5.000%, 01/01/24 590,720
50,000 Triborough Bridge & Tunnel
Authority RB, General Purpose,
Series B, ETM
5.100%, 01/01/10 50,603
------------
26,747,609
The accompanying notes are an integral part of the financial statements.
64
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
NORTH CAROLINA - 0.1%
235,000 Mecklenburg County, Multi-Family
Housing RB, Little Rock
Apartments, AMT, FNMA
3.500%, 01/01/12 235,000
235,000 State Medical Care Community
Hospital RB, Saint Joseph Hospital
Project, AMBAC, ETM
5.100%, 10/01/14 235,402
------------
470,402
NORTH DAKOTA - 0.1%
State Housing Finance Agency RB,
Housing Finance Program Home
Mortgage, Series B, AMT,
SPA-FHLB
250,000 4.125%, 07/01/11 251,008
210,000 4.000%, 07/01/10 210,695
------------
461,703
OHIO - 4.8%
Buckeye, Tobacco Settlement RB,
Asset-Backed Senior Turbo,
Series A-2
9,050,000 6.000%, 06/01/42 8,259,935
2,000,000 5.875%, 06/01/30 1,854,380
496,093 City of Columbus SA (5)
4.250%, 12/06/17 492,199
261,386 Columbus, Independent
Assessment SA (5)
4.250%, 12/06/17 259,334
150,000 Columbus, Sewer Improvement
Bonds GO, ETM
6.000%, 09/15/11 150,982
2,080,000 Cuyahoga County GO, MBIA
5.600%, 05/15/13 2,205,778
270,000 Germantown, Public Infrastructure
GO, Hickory Point
4.600%, 12/01/15 270,008
Higher Education Facilities RB,
Kenyon College Project
2,500,000 4.850%, 07/01/37 2,633,200
1,000,000 4.700%, 07/01/37 1,046,610
2,335,000 State Economic Development RB,
Health Gains Bakery (2) (5) (8) (9)
5.840%, 12/01/25 2,435,732
1,080,000 State Housing Finance Agency
Mortgage RB, Residential
Mortgage-Backed Securities, AMT,
GNMA, FNMA
4.625%, 09/01/16 1,083,596
1,150,000 State Housing Finance Agency RB,
Residential Mortgage-Backed Securities,
Series F, GNMA, FNMA (2)
5.437%, 03/01/09 1,165,663
Principal
Amount $ Value $
- ------------ ------------
11,150,000 Steubenville Hospital RB,
Trinity Health (1)
2.777%, 10/01/30 8,084,308
1,915,000 Summit County, Port Authority
Board RB, Cavaliers Practice,
Series D (2)
6.250%, 05/15/26 1,865,191
100,000 Wood County, Industrial
Development RB, Schutz Container
Systems Project, Series B,
(LOC: Bayerische Hypo-und
Vereinsbank) (1)
7.125%, 06/01/13 103,820
------------
31,910,736
OKLAHOMA - 1.9%
2,365,000 Comanche County, Hospital
Authority RB, RADIAN
5.250%, 07/01/20 2,408,634
McAlester Public Works Authority RB,
Series B (2)
1,195,000 7.100%, 09/01/18 1,209,316
515,000 7.000%, 09/01/17 521,036
485,000 6.900%, 09/01/16 490,767
455,000 6.800%, 09/01/15 460,355
460,000 State Housing Finance Authority RB,
Single-Family Mortgage,
Series B, AMT, GNMA, FNMA, FHLMC
4.250%, 09/01/25 460,874
145,000 Tulsa County, Home Finance
Authority RB, Single-Family
Mortgage, FGIC, ETM
6.900%, 08/01/10 151,887
Tulsa, Industrial Authority TA,
Series A (2)
1,500,000 7.020%, 01/01/12 1,571,145
2,500,000 7.350%, 01/01/17 2,607,550
Tulsa, Industrial Authority TA,
Series B (2)
175,000 6.970%, 07/01/11 184,349
2,500,000 7.300%, 07/01/16 2,562,950
------------
12,628,863
OREGON - 0.2%
710,000 Portland Housing Authority RB, New
Columbia Development, Capital
Funding Program, AMT
4.300%, 10/01/15 706,088
475,000 State Facilities Authority RB, College
Inn Student Housing, Series B
6.250%, 07/01/11 474,007
------------
1,180,095
The accompanying notes are an integral part of the financial statements.
65
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
PENNSYLVANIA - 11.2%
Abington Township, Municipal
Authority RB, Marywood University
Project, RADIAN
705,000 4.450%, 06/01/20 672,084
730,000 4.450%, 06/01/21 687,733
675,000 4.400%, 06/01/19 645,145
650,000 4.250%, 06/01/18 619,658
195,000 Allegheny County, Hospital
Development Authority RB,
Childrens Hospital of Pittsburgh,
MBIA, ETM
5.300%, 07/01/26 205,263
725,000 Allegheny County, Hospital
Development Authority RB,
Jefferson Regional Medical Center,
Series B
5.000%, 05/01/18 725,000
60,000 Allegheny County, Hospital
Development Authority RB,
Pittsburgh Mercy Health Systems,
AMBAC, ETM
5.625%, 08/15/26 60,539
165,000 Allegheny County, Redevelopment
Authority TA, Waterfront Project,
Series B
4.000%, 12/15/11 166,660
Allegheny County, Redevelopment
Authority TA, Waterfront Project,
Series B, FNMA
125,000 4.250%, 12/15/12 127,042
160,000 4.000%, 12/15/10 161,912
Allegheny County, Residential Finance
Authority RB, Series VV, AMT,
GNMA, FNMA
1,295,000 4.900%, 11/01/27 1,221,975
2,330,000 4.800%, 11/01/22 2,241,180
10,000 Berks County GO, Second Series,
MBIA
3.300%, 11/15/09 10,110
400,000 Chester, Upland School District GO
4.200%, 05/15/13 405,352
970,000 Chester, Upland School District GO,
XLCA
4.850%, 09/15/16 1,020,585
100,000 Dauphin County, General Authority
RB, AMBAC, Mandatory Put (4)
4.550%, 06/01/08 100,187
80,000 Dauphin County, General
Authority RB, Hapsco-Western
Pennsylvania Hospital Project,
Series A-1, MBIA, ETM
5.500%, 07/01/13 85,434
Principal
Amount $ Value $
- ------------ ------------
1,660,000 Delaware County, Hospital Revenue
Authority RB, Crozer Keystone
Obligation Group
5.000%, 12/15/19 1,562,093
17,000,000 Delaware Valley Regional Financial
Authority RB, Series C (1)
2.811%, 06/01/37 12,665,850
35,000 Erie, Higher Education Building
Authority RB, Gannon University
Project, AMBAC, ETM
7.375%, 06/01/08 35,158
1,525,000 Harrisburg, Parking Authority RB,
Series R, XLCA
4.250%, 05/15/21 1,430,130
40,000 Hempfield, School District GO, ETM
7.200%, 10/15/09 41,738
845,000 Lancaster County, School District
GO, FSA
4.250%, 06/01/25 818,011
185,000 Lancaster County, School District
GO, Series A, FSA
4.000%, 06/01/20 182,136
2,650,000 Lehigh County, General Purpose
Authority RB, St. Lukes Hospital
Bethlehem (1)
3.074%, 08/15/42 1,762,382
Monroe County Hospital Authority
RB, Pocono Medical Center
620,000 5.000%, 01/01/14 633,144
310,000 5.000%, 01/01/17 309,330
1,675,000 Monroe County Hospital Authority
RB, Pocono Medical Center,
Pre-Refunded @ 100 (7)
6.000%, 01/01/14 1,907,942
4,005,000 Montgomery County Industrial
Development Authority RB,
Monetary Project, Series A, MBIA
5.250%, 11/01/13 4,368,133
1,500,000 Philadelphia, Authority for Industrial
Development RB, Commercial
Development, Red Lion, AMT,
Mandatory Put, (LOC: PNC
Bank, NA) (4)
4.500%, 12/01/11 1,500,510
200,000 Philadelphia, Authority for Industrial
Development RB, Russell Byers
School, Series B (2)
6.625%, 05/01/09 203,504
585,000 Philadelphia, Authority for Industrial
Development RB, Series A, Russell
Byers Charter School
4.900%, 05/01/17 565,818
The accompanying notes are an integral part of the financial statements.
66
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
930,000 Philadelphia, Multi-Family Housing
Redevelopment Authority RB,
Pavilion Apartments Project,
Series A, AMT, HUD Section 236
4.250%, 10/01/16 929,479
500,000 Philadelphia, School District GO,
Series D, FSA
5.000%, 06/01/15 547,845
6,150,000 Saint Mary Hospital Authority RB,
Series F, Catholic Health East
Issue (1)
2.884%, 11/15/34 4,459,058
4,785,000 Scranton, Redevelopment
Authority RB, RADIAN (2)
6.100%, 11/01/24 4,306,979
900,000 State Economic Development
Financing Authority RB, York Water
Project, Series A, AMT, XLCA
5.000%, 04/01/16 903,069
755,000 State Higher Educational Facilities
Authority RB, Allegheny Delaware
Valley Obligation, Series A, MBIA
5.700%, 11/15/11 754,977
State Higher Educational Facilities
Authority RB, Assigned Independent
Colleges & Universities, RADIAN
405,000 4.125%, 05/01/12 405,369
375,000 4.000%, 05/01/10 377,081
390,000 4.000%, 05/01/11 390,655
State Higher Educational Facilities
Authority RB, Indiana University,
Series A, XLCA (1)
14,250,000 2.457%, 07/01/39 10,474,463
8,155,000 2.407%, 07/01/27 6,238,983
310,000 State Higher Educational Facilities
Authority RB, St. Francis
Independent Colleges-Universities
5.000%, 11/01/11 318,894
5,090,000 State Turnpike Common Oil RB,
Series A, AMBAC, ETM
5.000%, 12/01/15 5,210,328
1,610,000 State University RB, GO of University
5.000%, 09/01/24 1,669,908
------------
74,128,826
RHODE ISLAND - 0.4%
1,575,000 Providence Housing Authority RB,
New Canonchet Project, Series A,
AMT, GNMA
5.000%, 07/01/38 1,438,006
55,000 State Depositors Economic Protection
RB, Series B, MBIA, ETM
6.000%, 08/01/17 60,654
Principal
Amount $ Value $
- ------------ ------------
180,000 State Health & Educational Building
Authority RB, Capital Appreciation,
BIG (3)
3.335%, 11/01/12 141,044
Woonsocket, Housing Authority RB,
Capital Funds Housing Project
385,000 4.500%, 09/01/10 401,286
400,000 4.500%, 09/01/11 419,548
420,000 4.500%, 09/01/12 441,580
------------
2,902,118
SOUTH CAROLINA - 1.0%
385,000 Greenville County, Airport RB,
Donaldson Industrial Air Park
Project, AMT
6.125%, 10/01/17 388,180
Lee County School Facilities RB,
Series 2006, RADIAN
1,000,000 6.000%, 12/01/21 1,072,220
1,650,000 6.000%, 12/01/22 1,765,286
180,000 Piedmont, Municipal Power
Agency RB, Capital Appreciation,
Series A, AMBAC (3)
4.823%, 01/01/15 123,674
State Educational Facilities Authority
RB, Non-Profit Institutions,
Wofford College, Series A
360,000 4.500%, 04/01/20 354,118
375,000 4.500%, 04/01/21 365,306
750,000 4.500%, 04/01/30 680,865
330,000 4.250%, 04/01/18 321,898
345,000 4.250%, 04/01/19 332,991
1,160,000 State Jobs-Economic Development
Authority RB, Palmetto Health,
Series C,
Pre-Refunded @ 100 (7)
6.875%, 08/01/13 1,366,561
------------
6,771,099
SOUTH DAKOTA - 0.2%
980,000 Heartland Consumers Power
District RB, ETM
7.000%, 01/01/16 1,104,774
------------
TENNESSEE - 0.6%
455,000 Nashville & Davidson Counties,
Metropolitan Government Cab
Converter RB, FGIC
7.700%, 01/01/12 500,636
500,000 Nashville & Davidson Counties,
Metropolitan Government Health
& Educational Facilities
Board RB, RADIAN
5.100%, 08/01/16 500,525
The accompanying notes are an integral part of the financial statements.
67
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
1,500,000 Nashville & Davidson Counties,
Multi-Family Housing RB, River
Retreat, Series A, FNMA
4.750%, 11/01/26 1,395,105
State School Board Authority RB,
Series B (10)
40,000 5.250%, 05/01/10 40,286
1,275,000 5.000%, 05/01/09 1,284,308
50,000 Wilson County Health & Educational
Facilities Board RB, University
Medical Center, ETM
8.375%, 08/01/08 50,650
------------
3,771,510
TEXAS - 7.8%
2,020,000 Allen, Independent School District GO,
Capital Appreciation, PSF,
Pre-Refunded @ 40.017 (3) (7)
6.827%, 02/15/10 771,579
2,025,000 Allen, Independent School District GO,
Capital Appreciation, PSF,
Pre-Refunded @ 42.722 (3) (7)
6.778%, 02/15/10 825,775
110,000 Brownsville GO, Capital Appreciation,
AMBAC (3)
3.389%, 02/15/11 94,888
Canton Independent School
District GO, School Building
Authority, PSF
625,000 4.600%, 02/15/23 633,450
375,000 4.500%, 02/15/21 382,046
4,956,850 Central Texas, Single-Family Housing
Financial Corporation RB,
Mortgage-Backed Securities
Program, Series A-1,
AMT, GNMA, FNMA
5.150%, 12/01/39 4,696,764
Commerce Independent School
District GO, Capital Appreciation
School District, PSF (3)
565,000 4.037%, 08/15/09 546,355
740,000 4.175%, 08/15/10 693,765
Commerce Independent School
District GO, School Building
Authority, PSF
1,075,000 4.600%, 08/15/23 1,090,200
1,130,000 4.600%, 08/15/24 1,139,119
985,000 4.500%, 08/15/21 1,003,991
1,035,000 4.500%, 08/15/22 1,048,279
De Soto GO, CIFG
390,000 4.375%, 02/15/24 371,354
330,000 4.250%, 02/15/23 312,926
340,000 4.200%, 02/15/22 323,932
345,000 4.125%, 02/15/21 329,137
330,000 4.100%, 02/15/20 318,417
Principal
Amount $ Value $
- ------------ ------------
20,000 Denison, Hospital Authority RB,
Texoma Medical Center, ETM
7.125%, 07/01/08 20,168
Fort Bend County, Municipal Utility
District No. 23 GO, FGIC
45,000 6.500%, 09/01/08 45,588
65,000 6.500%, 09/01/09 67,977
70,000 6.500%, 09/01/10 75,205
45,000 6.500%, 09/01/11 49,292
95,000 5.000%, 09/01/16 98,120
250,000 Greater Greenspoint, Redevelopment
Authority RB, Tax Increment
Contract, RADIAN
5.250%, 09/01/10 258,242
155,000 Harris County, Health Facilities
Development RB, St. Lukes
Episcopal Hospital Project, ETM
6.625%, 02/15/12 161,746
7,475,000 Harris County RB, Series B,
AMBAC (1)
2.724%, 08/15/35 5,606,624
100,000 Houston Apartment Systems RB,
Series A, AMT, FGIC
5.000%, 07/01/19 97,859
135,000 Houston, Airport System RB, ETM
7.600%, 07/01/10 142,397
10,000 Houston, Sewer System RB,
FGIC, ETM
6.375%, 10/01/08 10,161
Howard County GO, RADIAN
335,000 4.000%, 02/15/14 329,372
375,000 4.000%, 02/15/17 355,939
200,000 4.000%, 02/15/18 186,862
Lewisville, Combination Contract GO,
Special Assessment Capital District 2,
ACA (5)
3,545,000 5.625%, 09/01/17 3,547,411
2,000,000 5.875%, 09/01/22 1,923,980
7,030,000 Matagorda County Hospital
District RB, FHA
4.450%, 08/15/27 6,464,577
Retama, Development Corporate
Special Facilities RB, Retama
Racetrack, ETM (2)
2,000,000 10.000%, 12/15/17 2,826,740
500,000 8.750%, 12/15/11 584,220
San Leanna, Educational Facilities Higher
RB, Saint Edwards University Project
1,165,000 5.000%, 06/01/16 1,191,783
500,000 5.000%, 06/01/17 509,930
500,000 San Leanna Educational Facilities RB
5.000%, 06/01/19 502,880
The accompanying notes are an integral part of the financial statements.
68
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
50,000 Sendero, Public Facilities RB, Crown
Meadows Project, Series A, FHLMC
4.250%, 06/01/13 51,299
Sienna, Plantation Levee Improvement
District GO, FSA
430,000 4.750%, 09/01/23 439,327
450,000 4.750%, 09/01/24 457,502
1,335,000 4.500%, 09/01/31 1,289,984
1,500,000 South Lake GO,
Pre-Refunded @ 26.765,
AMBAC (3) (7)
7.212%, 02/15/09 395,190
3,145,000 South Lake GO,
Pre-Refunded @ 32.616,
AMBAC (3) (7)
7.130%, 02/15/09 1,009,702
1,155,000 State Department of Housing &
Community RB, Summit Point
Apartments, GNMA
4.800%, 06/20/18 1,150,807
7,400,000 State Municipal Gas Acquisition &
Supply RB (1)
2.746%, 09/15/27 5,920,370
745,000 Travis County, Health Facility
Development RB, Daughters of
Charity, MBIA, ETM
5.000%, 11/01/20 745,924
445,951 West Central, Regulation Housing
Financial RB, Mortgage-Backed
Securities Program, Series A, AMT,
GNMA, FNMA, FHLMC
5.350%, 12/01/39 425,486
------------
51,524,641
UTAH - 0.5%
30,000 Intermountain Power Agency RB,
Marathon Oil Project, Series A, ETM
5.000%, 07/01/21 30,056
1,000,000 State Environmental RB, Marathon
Oil Project (1)
5.050%, 11/01/17 1,031,130
1,315,000 State Housing Corporation,
Single-Family Mortgage RB,
Series C-1, Class III, AMT
4.850%, 07/01/27 1,309,372
980,000 State Housing Corporation,
Single-Family Mortgage RB,
Series G, Class III, AMT
4.700%, 07/01/28 966,946
------------
3,337,504
VIRGINIA - 0.5%
2,300,000 Louisa, Industrial Development
Authority RB, Pollution Control
5.250%, 12/01/08 2,317,089
Principal
Amount $ Value $
- ------------ ------------
710,000 Norfolk, Packaging Systems RB,
Series A, MBIA
4.000%, 02/01/19 692,136
------------
3,009,225
WASHINGTON - 0.0%
309,539 Nooksack, Indian Tribe RB
5.500%, 02/23/11 309,511
------------
WEST VIRGINIA - 0.3%
360,000 State Economic Development
Authority, Industrial Development,
Central Supply Project, AMT,
(LOC: BB&T)
5.500%, 05/15/10 366,235
2,000,000 State Jobs Investment Trust Board RB,
Promissory Notes, Series D (2) (3)
7.413%, 07/31/13 1,525,640
------------
1,891,875
WISCONSIN - 0.9%
2,985,000 Franklin, Solid Waste Disposal RB,
Waste Management Conversion,
AMT (1)
4.950%, 04/01/16 2,855,481
800,000 Kronenwetter, Anticipation Notes
4.750%, 03/01/11 807,296
1,365,000 Oshkosh, Industrial Development
Authority RB, Don Evans Project,
Mandatory Put, AMT,
(LOC: Marshall & Ilslay) (4)
5.500%, 12/01/11 1,369,682
10,000 State Transportation RB, Series A
5.500%, 07/01/11 10,816
60,000 Winnebago County,
Promissory Notes GO
4.375%, 04/01/12 61,526
1,000,000 Wisconsin Housing & Economic
Development Authority RB,
Series C
4.750%, 09/01/12 1,015,510
------------
6,120,311
------------
TOTAL MUNICIPAL BONDS
(Cost $657,962,893) 622,157,938
------------
CORPORATE OBLIGATIONS (2) (5) - 0.4%
102,081 IIS/Syska Holdings Energy (8) (9)
3.900%, 08/15/08 101,650
250,000 Kidspeace National Centers of
Georgia, USDA (1) (8) (9)
6.300%, 12/01/28 269,145
The accompanying notes are an integral part of the financial statements.
69
SCHRODER MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
761,541 Landmark Leasing (8) (9)
6.200%, 10/01/22 814,287
1,787,992 Niagara Elmwood
6.120%, 12/15/11 1,835,087
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $2,901,365) 3,020,169
------------
Shares
- ------------
SHORT-TERM INVESTMENTS - 3.7%
24,264,113 BlackRock Institutional Muni Fund
Portfolio, 2.450% (11) 24,264,113
3,810 JPMorgan Tax Free Money Market
Fund, 2.280% (11) 3,810
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $24,267,923) 24,267,923
------------
TOTAL INVESTMENTS - 97.9%
(Cost $685,132,181) 649,446,030
------------
OTHER ASSETS LESS LIABILITIES - 2.1% 13,565,720
------------
NET ASSETS - 100.0% $663,011,750
============
(1) Variable Rate Security - Rate disclosed is as of April 30, 2008.
(2) Security is taxable.
(3) Zero Coupon Security - Rate disclosed is the effective yield at time of
purchase.
(4) Mandatory Put Security - The mandatory put date is shown as the maturity
date on the Schedule of Investments.
(5) Private Placement Security.
(6) Step Bond - Coupon rate increases in increments to maturity. Rate disclosed
is as of April 30, 2008.
(7) Pre-Refunded Security - The maturity date shown is the pre-refunded date.
(8) Security considered restricted. (See Note 2 in Notes to Financial
Statements.)
(9) 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, 2008, the value of these
securities amounted to $3,620,814, representing 0.5% of the net assets of
the Fund.
(10) Economically Defeased Security.
(11) The rate shown represents the 7-day effective yield as of April 30, 2008.
AMT - Income from security may be subject to alternative minimum tax.
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 - ACA Financial Guaranty Corporation
ADFA - ADFA Guaranty
AMBAC - American Municipal Bond Assurance Corporation
BIG - BIG Guaranty
FGIC - Financial Guarantee Insurance Company
FHA - Federal Housing Administration
FSA - Financial Security Assurance
MBIA - Municipal Bond Investors Assurance
PSF - PSF Guaranty
RADIAN - RADIAN Guaranty
SONYMA - SONYMA Guaranty
SPA - SPA Guaranty
USDA - USDA Guaranty
XLCA - XL Capital Assurance
The accompanying notes are an integral part of the financial statements.
70
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
MUNICIPAL BONDS - 96.9%
ALABAMA - 0.3%
565,000 Montgomery Medical Clinic Board
RB, Jackson Hospital & Clinic
5.000%, 03/01/11 580,131
------------
ARIZONA - 2.2%
4,000,000 Arizona Health Facilities, Banner
Health RB, Series B (1)
2.677%, 01/01/37 2,980,200
35,000 Maricopa County, Hospital RB,
Intermediate Community-Sun
City, ETM
8.625%, 01/01/10 37,263
44,000 Maricopa County, Hospital RB,
St. Lukes Hospital Medical
Center Project, ETM
8.750%, 02/01/10 47,212
600,000 Maricopa County, Industrial
Development Authority RB,
Bal-Catholic West,
Unrefunded, Series A
5.000%, 07/01/16 604,632
100,000 Pima County Industrial Development
Authority RB, Tuscan County Day
School Project
4.000%, 06/01/08 100,014
140,000 Pinal County Industrial Development
Authority, Correctional Facilities RB,
Florence West Prison, Series A, ACA
3.875%, 10/01/09 139,183
------------
3,908,504
ARKANSAS - 3.3%
200,000 Fayetteville, Sales & Use Tax RB, FSA
4.125%, 11/01/26 201,974
1,210,000 Fayetteville, Sales & Use Tax RB,
Series A, FSA
4.000%, 11/01/21 1,235,858
100,000 Little Rock, Library Construction
Improvement GO, Series A
4.350%, 03/01/24 100,002
1,060,000 Marion, Sales & Use Tax RB,
Capital Improvement
4.850%, 09/01/32 1,065,862
95,000 Rogers, Sales & Use Tax RB,
Series A, FGIC
4.125%, 09/01/23 95,105
1,800,000 Rogers GO, XLCA
4.250%, 03/01/31 1,820,304
Principal
Amount $ Value $
- ------------ ------------
1,405,000 Springdale, Sales & Use Tax
RB, MBIA
4.000%, 07/01/16 1,451,604
------------
5,970,709
CALIFORNIA - 8.0%
481,060 Alexander Valley, School District
Lease Certificates RB,
Flexfund Program
4.250%, 07/01/14 486,852
2,200,000 California Health Facilities Funding
Authority RB, California-
Nevada-Methodist Project
4.250%, 07/01/11 2,226,224
4,750,000 Long Beach Financial Authority RB,
Natural Gas Purification, Series B (1)
3.464%, 11/15/25 3,461,800
3,860,000 Manteca, Financing Authority
Sewer RB, Series B, MBIA
5.000%, 12/01/33 3,912,303
305,000 Placer County, Water Agency RB,
Middle Fork Project
3.750%, 07/01/12 301,959
55,000 Sacramento County, Sanitation
District RB, ETM
5.000%, 12/01/08 55,106
3,500,000 State of California GO, Series M
4.875%, 10/01/10 3,506,230
235,000 Statewide Communities, Development
Authority RB, Warwick Terrace
Apartments, Series H,
(LOC: City National Bank)
4.800%, 04/15/19 227,962
160,235 Temple City, School District RB,
Flexfund Program
4.000%, 12/01/14 160,762
------------
14,339,198
COLORADO - 9.5%
7,205,000 Adonea, Metropolitan District
No. 2 RB, Series B,
(LOC: Compass Bank)
4.375%, 12/01/15 7,292,973
2,320,000 Beacon Point, Metropolitan
District RB, Series B,
(LOC: Compass Bank)
4.375%, 12/01/15 2,341,228
1,000,000 Denver Health & Hospital
Authority RB, Series B (1)
3.161%, 12/01/33 695,050
Fort Lewis, College Board RB,
Series D, FGIC (5) (10)
425,000 5.100%, 10/01/09 435,234
440,000 5.100%, 10/01/10 454,032
The accompanying notes are an integral part of the financial statements.
71
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
1,440,000 High Plains, Metropolitan District RB,
Series B, (LOC: Compass Bank)
4.375%, 12/01/15 1,466,957
1,110,000 Maher Ranch, Metropolitan District
No. 4 GO, RADIAN
4.375%, 12/01/13 1,125,673
2,245,000 State Health Facilities Authority RB,
Catholic Health, Series A, ETM
5.500%, 03/01/22 2,384,863
345,000 State Health Facilities Authority RB,
Volunteers of America Care,
Series A
5.000%, 07/01/08 344,652
150,000 State Housing & Finance Authority
RB, Single-Family Program,
Series C-2, AMT
8.400%, 10/01/21 159,759
235,000 State Housing & Finance Authority
RB, Single-Family Project,
Series D2, AMT
6.350%, 11/01/29 246,134
------------
16,946,555
DELAWARE - 0.1%
90,000 State Housing Authority RB,
Single-Family Mortgage,
Series A-1, AMT, MBIA
5.300%, 07/01/11 91,566
------------
DISTRICT OF COLUMBIA - 0.1%
175,000 Housing Finance Agency RB,
1330 7th Street Apartments,
Series A, AMT, FHA
3.000%, 12/01/09 175,145
------------
FLORIDA - 0.7%
5,000 Dunedin, Health Facility Authority RB,
Mease Hospital, ETM
7.600%, 10/01/08 5,098
310,000 Florida State Board of Education GO,
Public Education Improvements,
Series C, ETM
6.000%, 05/01/08 310,031
400,000 Florida State Department of
Management Services COP,
Series A, MBIA
3.750%, 08/01/08 401,620
425,000 Florida State, Board of Registered
Parking System RB, University of
Florida, MBIA
5.000%, 08/01/10 425,773
5,000 Florida State GO, ETM
5.900%, 07/01/08 5,032
Principal
Amount $ Value $
- ------------ ------------
100,000 Jacksonville, Electric Authority RB,
Third Installment, ETM
6.800%, 07/01/12 108,457
------------
1,256,011
GEORGIA - 1.4%
840,000 Cobb County, Kennestone Hospital
Authority RB, Capital Appreciation
Certificates, Series 86A, MBIA,
ETM (2)
4.713%, 08/01/15 552,359
490,000 Hapeville, Development Authority RB,
Intergovernmental (5)(9)
6.500%, 08/01/09 503,152
1,040,000 Randolph County, Sales Tax GO (9)
3.210%, 04/01/12 1,043,525
385,000 State Housing & Finance
Authority RB, Single-Family
Mortgage Program, Sub-Series D-3 (1)
4.850%, 06/01/17 389,974
------------
2,489,010
IDAHO - 0.0%
25,000 State Housing & Finance Association
RB, Single-Family Mortgage
Program, Sub-Series G-2, AMT
5.750%, 01/01/14 25,288
15,000 State Housing & Finance
Association RB, Single-Family
Mortgage Program, Sub-Series H-2,
AMT, FHA
5.850%, 01/01/14 15,369
------------
40,657
ILLINOIS - 9.3%
5,000,000 Bartlett, Quarry Redevelopment
Project TA (5)
5.350%, 01/01/17 4,948,400
5,000,000 Bolingbrook, Sales Tax RB (10)
6.000%, 01/01/26 4,782,000
639,000 Cary, Special Tax, Special Service
Area No. 1, RADIAN
4.400%, 03/01/16 625,779
15,000 Chicago, Single-Family Mortgage RB,
Series B, AMT, GNMA, FNMA,
FHLMC
6.950%, 09/01/28 15,493
2,000,000 Illinois Finance Authority RB,
Series B, XLCA, Mandatory Put
(1) (6)
3.500%, 04/01/11 1,978,620
685,000 McCook, British Home Project RB,
(LOC: LaSalle Bank NA) (1)
4.250%, 12/01/14 685,891
The accompanying notes are an integral part of the financial statements.
72
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
75,000 Pekin, Single-Family Mortgage RB, ETM
7.400%, 12/01/08 77,025
3,619,000 Pingree Grove, Special Services Area, Cambridge
Lakes Project, Series 05-1
5.250%, 03/01/15 3,503,699
------------
16,616,907
INDIANA - 1.3%
1,095,000 Carmel, Industrial Redevelopment RB, BAN,
District Golf
5.250%, 02/01/09 1,096,139
350,000 Hamilton County, Industrial Redevelopment TA,
District Tax Increment Revenue
3.850%, 01/10/10 350,542
105,000 State Health Facility Financing Authority RB,
Unrefunded, Series A, MBIA
5.000%, 11/01/09 107,293
270,000 State Housing Finance Authority RB, Single-Family
Mortgage, Series A-3, AMT, GNMA, FNMA
5.375%, 01/01/23 270,683
550,000 Upland, Economic Development RB, Taylor University
Project
4.000%, 09/01/08 551,854
------------
2,376,511
IOWA - 0.0%
5,000 Sioux City, Hospital RB, Series O, MBIA, ETM
5.250%, 08/15/10 5,011
------------
KANSAS - 2.7%
1,585,000 Sedgwick & Shawnee Counties, Single-Family
Mortgage RB, Series A, AMT, GNMA, FNMA (10)
5.600%, 06/01/27 1,613,292
1,400,000 Sedgwick & Shawnee Counties, Single-Family
Mortgage RB, Series A-2, AMT, GNMA, FNMA
5.600%, 06/01/29 1,431,598
440,000 Wyandotte County, Sales Tax RB, 1st Lien, Area B,
(LOC: Citibank NA)
3.750%, 12/01/12 438,803
1,400,000 Wyandotte County, Sales Tax RB, 1st Lien, Area C,
(LOC: Citibank NA)
3.850%, 12/01/13 1,419,628
------------
4,903,321
KENTUCKY - 0.2%
35,000 State Turnpike Authority Toll Road RB, ETM
6.125%, 07/01/08 35,239
Principal
Amount $ Value $
- ------------ ------------
290,000 State Turnpike Authority RB, Resource Recovery
Redevelopment, Series A, ETM
5.000%, 07/01/08 291,337
25,000 State Turnpike Authority RB, ETM (1)
6.625%, 07/01/08 25,191
------------
351,767
LOUISIANA - 0.9%
105,000 Calcasieu Parish, Public Transportation Authority
RB, Single-Family Mortgage, Series A, AMT,
GNMA, FNMA
5.850%, 10/01/32 106,235
20,000 Jefferson Parish, Hospital Service District No. 1
RB, ETM
7.250%, 01/01/09 20,590
1,065,000 Louisiana Local Government, Environmental
Facilities RB, Southeastern Louisiana
University, Series B, MBIA
4.375%, 02/01/37 1,060,942
40,000 Monroe-West Monroe, Single-Family Mortgage RB, ETM
7.200%, 08/01/10 41,852
420,000 State Multi-Family Housing Finance Agency RB,
Section 8-202 Project, Series A
3.950%, 12/01/09 426,460
15,000 State Public Facilities Authority Hospital RB,
Pendleton Memorial Methodist Hospital, ETM
5.000%, 06/01/08 15,037
------------
1,671,116
MARYLAND - 1.8%
Annapolis, Economic Development RB, Saint Johns
College Facilities, Series A
80,000 4.500%, 10/01/08 80,390
85,000 4.500%, 10/01/09 86,188
90,000 4.250%, 10/01/10 91,300
Annapolis, Economic Development RB, Saint Johns
College Facilities, Series B
45,000 4.500%, 10/01/08 45,219
60,000 4.250%, 10/01/10 60,866
2,180,000 Baltimore, Unrefunded Capital Appreciation GO,
Series A, FGIC (2)
4.474%, 10/15/09 2,003,398
880,000 State Health & Higher Education RB, Howard County
General Hospital, ETM
5.500%, 07/01/13 914,347
------------
3,281,708
The accompanying notes are an integral part of the financial statements.
73
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
MICHIGAN - 0.8%
700,000 Detroit/Wayne County, Stadium Authority RB, FGIC
5.250%, 02/01/09 708,750
280,000 Grand Valley, State University RB, AMBAC
5.150%, 10/01/09 282,903
360,000 Kalamazoo, Hospital Finance Authority RB, Bronson
Methodist, MBIA
5.500%, 05/15/08 360,281
------------
1,351,934
MINNESOTA - 0.7%
165,000 Alexandria, Industrial Development RB, Seluemed
Limited LLP Project, AMT,
(LOC: First Trust NA) (9)
5.300%, 03/01/10 165,470
740,000 Burnsville, Hospital System RB, Fairview Community
Hospitals, ETM (2)
6.001%, 05/01/12 582,003
570,000 State Housing Finance Agency RB, Residential
Housing Financing, Series B, AMT
4.800%, 07/01/23 572,166
------------
1,319,639
MISSISSIPPI - 0.7%
1,235,000 Mississippi Business Finance RB, TT&W Farm
Products Project, AMT, (LOC: National Bank)
6.900%, 07/01/10 1,237,890
------------
MISSOURI - 3.9%
955,000 Boone County, Industrial Development Authority RB,
Otscon Project, AMT, Mandatory Put,
(LOC: Boone County National Bank) (1) (6)
4.750%, 05/01/12 909,494
Pacific, Industrial Development Authority RB,
Clayton Project, AMT, (LOC: Commerce Bank NA)
720,000 6.450%, 05/01/17 722,117
540,000 6.200%, 05/01/12 541,469
2,750,000 Riverside, Industrial Development Authority RB,
Riverside Horizons Project, Series B, ACA
4.500%, 05/01/27 2,381,665
100,000 St. Charles County, Industrial Development
Authority RB, Garden View Care Center Project,
AMT, (LOC: U.S. Bank NA)
5.400%, 11/15/16 100,614
Principal
Amount $ Value $
- ------------ ------------
1,125,000 State Development Finance Board RB, Arnold
Infrastructure Project, Series B
5.000%, 11/01/27 1,112,569
1,150,000 Waynesville COP, RADIAN
4.200%, 04/01/17 1,145,906
------------
6,913,834
MONTANA - 0.0%
20,000 State Board of Investment RB, Payroll Tax Workers
Compensation Project, MBIA, ETM
6.875%, 06/01/11 20,842
------------
NEBRASKA - 0.4%
100,000 Madison County, Hospital Authority RB, Faith
Regional Healthcare Services Project, RADIAN
4.850%, 07/01/09 101,195
560,000 Omaha, Public Power District RB, Series B, ETM
6.150%, 02/01/12 599,497
------------
700,692
NEVADA - 2.8%
5,200,000 Clark County, Pollution Control RB, Nevada Power
Company Project, ACA
5.300%, 10/01/11 5,021,900
35,000 State Municipal Bond GO, Project No. 28-31-C, ETM
7.200%, 01/01/09 35,270
------------
5,057,170
NEW JERSEY - 2.1%
5,000 Hudson County GO
5.125%, 08/01/08 5,038
150,000 State Economic Development Authority RB,
Newark Downtown District Management
4.500%, 06/15/08 150,180
1,990,000 State Health Care Facilities Authority RB,
Catholic Health East Issue, Series E (1)
2.854%, 11/15/33 1,462,749
125,000 State Health Care Facilities Financing Authority
RB, Allegany Health, Our Lady of Lourdes,
MBIA, ETM
5.000%, 07/01/08 125,285
State Higher Education Assistance Authority RB,
Series A, AMT, AMBAC
885,000 5.150%, 06/01/12 898,399
845,000 5.050%, 06/01/11 846,411
The accompanying notes are an integral part of the financial statements.
74
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ ------------
300,000 State Housing & Mortgage Finance Agency RB,
Multi-Family Housing, Series A, AMT, FSA
5.050%, 11/01/18 301,266
------------
3,789,328
NEW MEXICO - 0.2%
260,000 State, Mortgage Financial Authority RB,
Single-Family Housing, Series A2, Class I, AMT,
GNMA, FNMA, FHLMC
3.900%, 01/01/19 260,237
------------
NEW YORK - 5.7%
100,000 Freeport GO
4.500%, 08/01/08 100,641
4,510,000 New York Mortgage Agency RB
5.150%, 04/01/17 4,609,400
2,150,000 New York State Housing Finance Agency RB,
Multi-Family Housing, Series B, AMT, SONYMA
4.750%, 08/15/37 2,164,018
1,835,000 State Dormitory Authority RB, Concord Nursing
Home, GNMA
3.875%, 08/15/12 1,864,544
95,000 State Dormitory Authority RB, State Supported
Debt, Unrefunded, Series B
5.700%, 02/15/09 96,218
370,000 State Urban Development RB, Capital Appreciation,
Series O, FSA (2)
3.071%, 01/01/11 322,688
750,000 Tobacco Settlement Financing RB, Series B-1C
5.250%, 06/01/13 751,088
335,000 Tobacco Settlement Financing RB, Series C-1
5.250%, 06/01/12 335,529
------------
10,244,126
NORTH CAROLINA - 0.2%
25,000 Pasquotank County, Public Schools Project COP,
MBIA
5.000%, 06/01/15 25,042
30,000 State Medical Care Community Hospital RB,
Memorial Mission Hospital Project, ETM
7.625%, 10/01/08 30,622
100,000 State Medical Care Community RB, North Carolina
Housing Foundation Project, ACA
6.000%, 08/15/10 100,638
Principal
Amount $ Value $
- ------------ ------------
125,000 State Medical Care Community RB, Saint Joseph
Hospital Project, AMBAC, ETM
5.000%, 10/01/08 125,284
------------
281,586
NORTH DAKOTA - 0.2%
275,000 State Housing Finance Agency RB, Home Mortgage
Program, Series A, AMT
5.200%, 07/01/19 277,065
------------
OHIO - 0.9%
50,000 Cuyahoga County, Deaconess Hospital Project RB,
ETM
6.750%, 11/01/09 51,861
130,000 Franklin County, First Mortgage RB, OCLC Project,
ETM
7.500%, 06/01/09 133,912
500,000 Montgomery County, Health Facilities Authority RB,
Franciscan at Saint Leonard,
Pre-Refunded @ 100 (7)
5.500%, 01/01/10 519,165
875,000 Summit County, Port Authority RB, Multi-Family
Housing, Englewood Apartments Project, AMT
(LOC: Transamerica Life)
4.250%, 05/01/10 874,282
------------
1,579,220
OKLAHOMA - 0.5%
930,000 Pottawatomie County, Shawnee Public Schools
Project RB
5.000%, 09/01/09 950,702
------------
OREGON - 1.2%
405,000 State Housing & Community Services Department RB,
Single-Family Mortgage Program, Series F,
AMT, MBIA
5.650%, 07/01/28 405,996
1,270,000 State Housing & Community Services Department RB,
Single-Family Mortgage Program, Series J,
AMT, FNMA
5.750%, 07/01/29 1,273,581
550,000 State Housing & Community Services Department RB,
Single-Family Mortgage Program, Series R, AMT
4.200%, 07/01/27 550,688
------------
2,230,265
The accompanying notes are an integral part of the financial statements.
75
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
PENNSYLVANIA - 15.8%
10,000 Berks County GO,
Second Series, MBIA
3.100%, 11/15/08 10,057
1,775,000 Bucks County, Industrial Development
Authority RB, School Lane Charter
School, Series A (3) (8)
4.600%, 03/15/17 1,690,244
1,000,000 Chester County, Health & Education
Facilities Authority RB, Chester
County Hospital, MBIA
5.625%, 07/01/08 1,004,600
2,800,000 Cumberland County, Municipal
Authority RB, Presbyterian Homes
Project, Series B, RADIAN (1) (6)
4.250%, 12/01/08 2,815,904
6,300,000 Delaware Valley, Regional Financial
Authority RB, Series C (1)
2.711%, 06/01/27 4,622,940
130,000 Lakeland, School District GO, ETM
8.875%, 08/15/10 140,189
1,215,000 Lawrence County Industrial
Development Authority RB,
Shenango Presbyterian, Series B,
Pre-Refunded @ 102 (7)
7.500%, 11/15/11 1,412,316
975,000 Lehigh County, General Purpose
Authority RB, St. Lukes Hospital
Bethlehem (1)
3.074%, 08/15/42 648,424
3,670,000 Lycoming County, Hospitals
Authority RB, Devine Providence
Hospital, Connie Lee
5.375%, 11/15/10 3,677,744
515,000 Monroe County, Hospital Authority
RB, Pocono Medical Center
5.000%, 01/01/10 525,635
40,000 Philadelphia, Hospitals Authority RB,
Thomas Jefferson University
Hospital, ETM
7.000%, 07/01/08 40,327
665,000 Pittsburgh, Urban Redevelopment
Authority TA, Center Triangle,
Series B (5)
5.420%, 05/01/15 684,657
1,250,000 Sayre, Health Care Facilities
Authority RB, Guthrie
Health Issue, Series B,
Pre-Refunded @ 107.5 (7)
7.125%, 12/01/11 1,510,962
State Higher Educational Facilities
Authority RB, Indiana University,
Series A, XLCA (1)
4,550,000 2.457%, 07/01/39 3,344,477
4,940,000 2.407%, 07/01/27 3,779,347
Principal
Amount $ Value $
- ------------ -------------
1,120,000 State Higher Educational Facilities
Authority RB, St. Francis
Independent Colleges-Universities
5.000%, 11/01/11 1,152,133
1,300,000 State Turnpike Commission BAN,
Series B, AMBAC (5)
5.290%, 10/15/09 1,309,360
-------------
28,369,316
SOUTH CAROLINA - 0.0%
50,000 Piedmont, Municipal Power
Agency RB, Series A, ACA-CBI
5.250%, 01/01/15 50,677
-------------
SOUTH DAKOTA - 1.3%
2,075,000 Lower Brule Sioux Tribe,
Pre-Refunded @ 100 (7)
6.500%, 02/01/11 2,258,928
95,000 State Lease Revenue Trust COP,
Series B, FSA
6.500%, 09/01/08 96,391
-------------
2,355,319
TENNESSEE - 0.8%
1,135,000 Knox County, Health Educational &
Housing Facilities Board RB,
University Health Systems
4.125%, 04/01/11 1,136,056
195,000 State Housing Development
Agency RB, Homeownership
Program, Series 1D
4.700%, 07/01/15 198,927
-------------
1,334,983
TEXAS - 5.2%
275,000 Brownsville GO, Capital Appreciation,
AMBAC (2)
12.711%, 02/15/11 237,220
400,000 Galveston County, Single-Family
Housing Mortgage RB,
Mortgaged-Backed Securities Project,
Series A, AMT, GNMA, FNMA
6.200%, 12/01/32 405,344
2,000,000 Harris County RB, Series B,
AMBAC (1)
2.724%, 08/15/35 1,500,100
285,000 Howard County GO, RADIAN
4.000%, 02/15/10 286,505
2,885,000 Retama, Development Special Facilities
RB, Retama Racetrack, ETM (5)
8.750%, 12/15/10 3,268,907
State Municipal Gas Acquisition &
Supply RB (1)
2,600,000 2.746%, 09/15/27 2,080,130
250,000 2.576%, 09/15/17 228,763
The accompanying notes are an integral part of the financial statements.
76
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount $ Value $
- ------------ -------------
1,275,000 State Municipal Gas Acquisition &
Supply RB, Series B (1)
2.206%, 12/15/09 1,214,501
90,000 Valley Community Hospital RB, ETM
7.500%, 04/01/09 94,459
-------------
9,315,929
UTAH - 0.7%
Salt Lake City RB, Westminister
College Project
200,000 4.500%, 10/01/09 201,664
230,000 4.500%, 10/01/10 232,461
550,000 4.500%, 10/01/11 553,273
265,000 Utah County, Charter School RB,
Lincoln Academy, Series B (5)
6.900%, 06/15/09 270,451
-------------
1,257,849
VIRGINIA - 2.0%
445,000 Louisa, Industrial Development
Authority RB, Pollution Control
5.250%, 12/01/08 448,306
1,500,000 Poplar Hill, Community Development
Authority COP, Series A (4) (5)
5.500%, 09/01/34 1,118,475
Richmond Metropolitan Authority RB,
ETM
490,000 5.600%, 01/15/13 519,699
405,000 5.400%, 01/15/13 410,115
950,000 Rockbridge County, Industrial
Development Authority RB,
Horse Center, Series C,
Pre-Refunded @ 100 (7)
6.850%, 07/15/11 1,064,162
-------------
3,560,757
WASHINGTON - 2.0%
3,400,000 King County, Housing Authority RB,
Series A, RADIAN
5.050%, 07/01/13 3,405,780
150,000 Northshore, Park & Recreation
Services GO
5.000%, 12/01/08 150,336
-------------
3,556,116
WEST VIRGINIA - 0.0%
30,000 Cabell, Putnam & Wayne Counties,
Single-Family Residential
Mortgage RB, FGIC, ETM
7.375%, 04/01/10 31,455
-------------
WISCONSIN - 7.0%
500,000 Antigo, Taxable-Bond Anticipation
Notes RB (5)
6.375%, 08/01/09 503,380
Principal
Amount $ Value $
- ------------ -------------
2,005,000 Ashland BAN, Series A
4.500%, 06/01/09 2,008,128
1,250,000 Cedarburg GO (5)
5.875%, 12/01/09 1,264,550
1,000,000 Fond Du Lac,
Water Works RB, BAN
4.000%, 03/01/10 1,000,480
3,325,000 Kewaskum RB, Water
Works & Sewer
System, BAN
4.250%, 05/01/10 3,371,293
1,250,000 Kronenwetter, Anticipation Notes
4.750%, 03/01/11 1,261,400
900,000 Oshkosh, Industrial Development
Authority RB, Don Evans Project,
AMT, Mandatory Put,
(LOC: Marshall & Ilslay) (6)
5.500%, 12/01/11 903,087
1,500,000 State Health & Educational Facilities
RB, Aurora Health Care, MBIA
5.000%, 08/15/09 1,530,600
745,000 State Housing & Economic
Development Authority RB,
Series E, AMT
5.800%, 09/01/17 753,620
-------------
12,596,538
-------------
TOTAL MUNICIPAL BONDS
(Cost $182,624,772) 173,647,296
-------------
CORPORATE
OBLIGATIONS (5) (9) - 1.6%
239,381 IIS/Syska Holdings Energy (3) (8)
3.900%, 08/15/08 238,369
250,000 Kidspeace National Centers of Georgia,
USDA (1) (3) (8)
6.300%, 12/01/28 269,145
2,278,795 Niagara Elmwood
6.120%, 12/15/11 2,338,819
-------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $2,767,592) 2,846,333
-------------
The accompanying notes are an integral part of the financial statements.
77
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
SHORT-TERM INVESTMENTS - 0.1%
103,908 BlackRock Institutional Muni Fund
Portfolio, 2.450% (11) 103,908
43,536 JPMorgan Tax Free Money Market
Fund, 2.280% (11) 43,536
-------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $147,444) 147,444
-------------
TOTAL INVESTMENTS - 98.6%
(Cost $185,539,808) 176,641,073
-------------
OTHER ASSETS LESS
LIABILITIES - 1.4% 2,536,151
-------------
NET ASSETS - 100.0% $ 179,177,224
=============
(1) Variable Rate Security - Rate disclosed is as of April 30, 2008.
(2) Zero Coupon Security - Rate disclosed is the effective yield at time of
purchase.
(3) Security considered restricted. (See Note 2 in Notes to Financial
Statements.)
(4) Security considered illiquid. On April 30, 2008 the value of this security
amounted to $1,118,475 representing 0.6% of the net assets of the Fund.
(5) Security is taxable.
(6) Mandatory Put Security - The mandatory put date is shown as the maturity
date on the Schedule of Investments.
(7) Pre-Refunded Security - The maturity date shown is the pre-refunded date.
(8) 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, 2008, the value of these
securities amounted to $2,197,758, representing 1.2% of the net assets of
the Fund.
(9) Private Placement Security.
(10) Step Bond - Coupon rate increases in increments to maturity. Rate disclosed
is as of April 30, 2008.
(11) The rate shown represents the 7-day simple yield as of April 30, 2008.
AMT -- Income from security may be subject to alternative minimum tax.
BAN -- Bond Anticipation Note
CBI -- Community-Based Initiatives
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
RB -- Revenue Bond
TA -- Tax Allocation
Guaranteed as to principal and interest by the organization identified below:
ACA -- ACA Financial Guaranty Corporation
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guarantee 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.
78
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Principal
Amount (a) Value $
- ----------------- ----------
FOREIGN BONDS - 43.4%
EUR 2,490,000 Bundesrepublik Deutschland
4.500%, 01/04/13 3,981,209
EGP 975,000 Egyptian Treasury Bill (1)
5.081%, 07/15/08 179,309
EUR 1,155,000 French Treasury Note
2.500%, 07/12/10 1,751,695
EUR 140,000 German Treasury Bill (1)
3.849%, 05/21/08 218,184
EUR 2,580,000 Government of France
4.750%, 10/25/12 4,143,415
MYR 2,350,000 Government of Malaysia
3.869%, 04/13/10 751,010
EUR 310,000 Kingdom of Morocco
5.000%, 07/08/08 484,216
100,000 Majapahit Holding
7.250%, 10/17/11 99,793
NOK 1,905,000 Norwegian Treasury Bill (1)
5.194%, 06/18/08 371,921
EUR 200,000 RSHB Capital
6.875%, 11/29/10 203,564
75,000 Scotland International Finance
No. 2 BV(2)
4.250%, 05/23/13 67,936
SEK 13,205,000 Swedish Government
5.500%, 10/08/12 2,336,317
EUR 70,000 VTB Capital, Series E
4.250%, 02/15/16 101,686
EUR 170,000 VTB Capital, Series E (3)
5.197%, 03/13/09 261,756
-----------
TOTAL FOREIGN BONDS
(Cost $14,502,218) 14,952,011
-----------
U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS - 27.4%
1,000,000 FFCB (1)
1.841%, 05/08/08 999,591
2,000,000 FHLB (1)
1.921%, 05/06/08 1,999,467
2,112,240 FHLMC Gold
5.000%, 05/01/37 2,078,606
1,020,000 FHLMC Gold TBA
5.500%, 05/15/37 1,026,375
1,873,390 GNMA
5.000%, 05/15/34 1,859,035
1,470,000 GNMA TBA
5.500%, 02/15/38 1,488,834
-----------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED
OBLIGATIONS
(Cost $9,356,539) 9,451,908
-----------
Principal
Amount (a) Value $
- ----------------- ----------
U.S. TREASURY
OBLIGATIONS (4) - 15.3%
U.S. Treasury Bonds
4,270,000 5.125%, 05/15/16 4,727,355
120,000 5.000%, 05/15/37 130,088
195,000 3.875%, 10/31/12 202,252
U.S. Treasury Notes
110,000 3.500%, 02/15/18 107,662
110,000 2.500%, 03/31/13 107,370
-----------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $ 4,926,137) 5,274,727
-----------
CORPORATE
OBLIGATIONS (4) - 7.4%
25,000 AGY Holding (2)
11.000%, 11/15/14 22,750
250,000 Bank of America
6.100%, 06/15/17 262,767
150,000 Barclays Bank
5.450%, 09/12/12 153,044
100,000 BNP Paribas
4.750%, 04/04/11 154,709
73,842 Elwood Energy LLC
8.159%, 07/05/26 71,408
100,000 Fortis Finance
5.500%, 04/15/11 156,837
Goldman Sachs Group
31,000 6.375%, 05/02/18 48,335
115,000 6.150%, 04/01/18 116,543
JPMorgan Chase
50,000 5.250%, 05/08/13 77,886
150,000 4.750%, 05/01/13 149,832
150,000 Merrill Lynch
6.875%, 04/25/18 151,495
Morgan Stanley
150,000 6.625%, 04/01/18 150,000
100,000 6.500%, 04/15/11 157,444
25,000 Nevada Power, Series O
6.500%, 05/15/18 25,751
75,000 Petroplus Finance (2)
7.000%, 05/01/17 70,125
250,000 PNC Bank
6.875%, 04/01/18 258,886
10,000 Reynolds American
7.625%, 06/01/16 10,644
100,000 Societe Generale (2)
5.750%, 04/20/16 96,984
116,000 UBS
5.375%, 04/11/11 181,381
The accompanying notes are an integral part of the financial statements.
79
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Principal
Amount (a) Value $
- ----------------- ----------
250,000 Wachovia Bank
6.600%, 01/15/38 242,517
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $2,565,970) 2,559,338
-----------
COMMERCIAL PAPER - 2.6%
900,000 General Electric Capital (1)
2.434%, 06/27/08
(Cost $896,552) 896,551
-----------
COLLATERALIZED MORTGAGE OBLIGATION - 1.8%
728,803 Countrywide Alternative Loan Trust,
Series 2007-25, Class 1A2
6.500%, 11/25/37
(Cost $718,280) 623,126
-----------
MORTGAGE-BACKED OBLIGATIONS - 0.8%
EUR 62,589 Gracechurch Card PLC, Series 2006-A,
Class A1 (3)
6.815%, 10/15/12 90,083
56,261 Master Asset-Backed Securities NIM
Trust, Series 2006-CI23,
Class N1 (2) (5) (6)
7.250%, 08/25/36 141
160,000 Morgan Stanley Capital I,
Series 2003-T11, Class A3
4.850%, 06/13/41 159,608
11,014 New Century Home Equity Loan Trust,
Series 2003-3, Class M5 (3) (6)
8.224%, 07/25/33 1,238
25,829 Park Place Securities,
Series 2004-WCW1, Class M8 (3)
6.395%, 09/25/34 12,507
47,865 Sharp SP I LLC NIM Trust,
Series 2006-HE3N,
Class NA (2) (5) (6)
6.400%, 06/25/36 517
-----------
TOTAL MORTGAGE-BACKED OBLIGATIONS
(Cost $375,968) 264,094
-----------
Principal
Amount (a) Value $
- ----------------- -----------
SHORT-TERM INVESTMENT - 4.2%
1,457,269 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $1,457,269) 1,457,269
-----------
TOTAL INVESTMENTS - 102.9%
(Cost $34,798,933) 35,479,024
-----------
OTHER ASSETS LESS LIABILITIES - (2.9)% (987,107)
-----------
NET ASSETS - 100.0% $34,491,917
===========
(a) Principal amount denominated in U.S. dollars unless otherwise indicated.
(1) Zero Coupon Security - Rate disclosed is the effective yield at time of
purchase.
(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, 2008, the value of these
securities amounted to $258,453, representing 0.7% of the net assets of the
Fund.
(3) Variable Rate Security - Rate disclosed is as of April 30, 2008.
(4) Security, or portion of security, has been pledged as collateral on open
derivative positions and mortgage dollar rolls.
(5) Security considered restricted. (See Note 2 in Notes to Financial
Statements.)
(6) Security considered illiquid. On April 30, 2008, the value of these
securities amounted to $1,896 representing less than 0.1% of the net assets
of the Fund.
EGP -- Egyptian Pound
EUR -- Euro
Euribor -- Euro InterBank Offered Rate
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
GBP -- British Pound Sterling
GNMA -- Government National Mortgage Association
JPY -- Japanese Yen
LIBOR -- London InterBank Offered Rate
LLC -- Limited Liability Company
MXP -- Mexican New Peso
MYR -- Malaysian Ringgit
NIM -- Net Interest Margin
NOK -- Norwegian Krone
PLC -- Public Limited Company
SEK -- Swedish Krona
STIBOR -- Stockholm InterBank Offered Rate
TBA -- To Be Announced
USD -- United States Dollar
The accompanying notes are an integral part of the financial statements.
80
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2008:
NUMBER NET UNREALIZED
OF EXPIRATION APPRECIATION
CONTRACTS VALUE DATE (DEPRECIATION)
--------- ---------- ---------- --------------
LONG:
Japan 10 Year Bond 2 $2,618,773 Jun-08 $ (59,003)
U.S. 10 Year Treasury Note 3 347,438 Jun-08 3,909
U.S. 5 Year Treasury Note 38 4,255,406 Jun-08 (31,164)
---------
(86,258)
SHORT:
Euro-Bobl 1 169,937 Jun-08 3,347
Euro-Schatz 6 972,694 Jun-08 5,752
U.S. 10 Year Treasury Note 58 6,717,125 Jun-08 (39,886)
U.S. 5 Year Treasury Note 7 783,891 Jun-08 2,380
U.S. Long Bond 9 1,052,016 Jun-08 (11,644)
---------
(40,051)
---------
$(126,309)
=========
FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund had the following forward foreign currency contracts outstanding at
April 30, 2008:
NET UNREALIZED
SETTLEMENT APPRECIATION
DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE (DEPRECIATION)
- ---------- ------------------- ------------------- ---------------
06/13/08 USD 422,000 EUR 269,476 $ (2,101)
06/13/08 USD 240,000 EUR 151,067 (4,607)
06/13/08 USD 170,000 GBP 85,989 441
06/13/08 USD 1,024,324 MXP 11,065,257 25,000
06/13/08 EUR 183,040 USD 280,000 (5,213)
06/13/08 EUR 7,857,647 USD 12,020,000 (223,795)
06/13/08 MXP 11,065,257 USD 1,010,000 (39,323)
06/13/08 SEK 14,681,292 USD 2,390,000 (57,831)
06/13/08 EUR 100,000 USD 157,071 1,251
06/13/08 EUR 100,000 USD 156,482 662
06/13/08 EUR 116,000 USD 181,912 1,161
06/13/08 EUR 100,000 USD 158,231 2,411
06/18/08 NOK 1,905,000 USD 378,577 5,905
06/13/08 EUR 31,000 USD 48,172 (133)
06/13/08 EUR 50,000 USD 77,682 (229)
---------
$(296,401)
=========
The accompanying notes are an integral part of the financial statements.
81
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
A summary of the outstanding Credit Default Swap agreements held by the fund at
April 30, 2008 is as follows:
NET UNREALIZED
EXPIRATION NOTIONAL APPRECIATION
DESCRIPTION DATE AMOUNT (DEPRECIATION)
- ----------- ---------- ---------- --------------
Fund pays quarterly 0.12% (0.48% per annum) times notional amount of ACE INA Holdings
8.875% 8/15/29. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Credit Suisse
Group) 6/20/13 $ 100,000 $ (415)
Fund receives quarterly 0.275% (1.10% per annum) times notional amount of Aviva PLC
9.50% 6/20/16. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 669
Fund receives quarterly 0.20% (0.80% per annum) times notional amount of Banco Bilbao
Vizcaya Argentaria S.A. 4.00% 4/22/13. Upon a defined credit event the Fund pays
notional amount and takes receipt of a defined deliverable obligation. (Counterparty:
Lehman Brothers) 6/20/13 EUR 30,000 415
Fund receives quarterly 0.15% (0.60% per annum) times notional amount of Banco Santander
S.A. 5.927% 8/9/13. Upon a defined credit event the Fund pays notional amount and
takes receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (21)
Fund receives quarterly 0.40% (1.60% per annum) times notional amount of Casino
Guichard Perrach 6.00% 2/27/12. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty:
JP Morgan) 6/20/13 EUR 30,000 1,537
Fund pays quarterly 0.4375% (1.75% per annum) times notional amount of CDX EM
Index Series 8. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 12/20/12 $ 370,000 126
Fund pays quarterly 0.4375% (1.75% per annum) times notional amount of CDX EM Index
Series 8. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 12/20/12 $ 730,000 (9,569)
Fund pays quarterly 0.4375% (1.75% per annum) times notional amount of CDX EM
Index Series 8. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 12/20/12 $ 740,000 (6,716)
Fund pays quarterly 0.6625% (2.65% per annum) times notional amount of CDX EM Index
Series 9. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/13 $ 160,000 (2,257)
Fund pays quarterly 0.0875% (0.35% per annum) times notional amount of CDX IG
Index Series 8. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/12 $ 100,000 1,075
Fund pays quarterly 0.13% (0.52% per annum) times notional amount of CenturyTel Inc.
7.875% 8/15/12. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Royal Bank of
Scotland) 9/20/12 $ 115,000 1,312
Fund pays quarterly 0.39% (1.56% per annum) times notional amount of Ciba Specialty
Chemicals Holdings 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) 6/20/13 EUR 30,000 1,088
Fund pays quarterly 0.20% (0.80% per annum) times notional amount of Deutsche Bank AG
5.50% 5/18/11. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (528)
Fund pays quarterly 0.60% (2.40% per annum) times notional amount of DSG International
PLC 6.125% 11/15/12. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 2,178
Fund pays quarterly 0.11% (0.44% per annum) times notional amount of Electricite de
France 5.625% 2/21/33. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (151)
Fund pays quarterly 0.315% (1.26% per annum) times notional amount of Electrolux AB
6.00% 4/7/16. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/13 EUR 30,000 (441)
Fund pays semi-annually 0.87% (1.74% per annum) times notional amount of Federal
Republic of Brazil 12.25% 3/6/30. Upon a defined credit event the Fund receives
notional amount and makes delivery of a defined deliverable obligation.
(Counterparty: Morgan Stanley) 3/20/13 $ 370,000 (11,497)
Fund pays semi-annually 0.725% (1.45% per annum) times notional amount of
Federal Republic of Brazil 12.25% 3/6/30. Upon a defined credit event the Fund
receives notional amount and makes delivery of a defined deliverable obligation.
(Counterparty: Morgan Stanley) 4/20/13 $ 90,000 (1,495)
Fund receives quarterly payment of 1.5625% (6.25% per annum) times notional amount of
Ford Motor Company 6.50% 8/1/18. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: JP
Morgan) 9/20/08 $ 100,000 1,165
The accompanying notes are an integral part of the financial statements.
82
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
NET UNREALIZED
EXPIRATION NOTIONAL APPRECIATION
DESCRIPTION DATE AMOUNT (DEPRECIATION)
- ----------- ---------- ---------- --------------
Fund receives quarterly 1.0375% (4.15% per annum) times notional amount of General
Motors Corp. 7.125% 7/15/13. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty:
Lehman Brothers) 9/20/08 $ 150,000 $ (995)
Fund receives quarterly 0.325% (1.30% per annum) times notional amount of Imperial
Tobacco Group PLC 6.25% 12/4/18. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty:
JP Morgan) 6/20/13 EUR 30,000 (131)
Fund receives quarterly 0.155% (0.62% per annum) times notional amount of Linde AG
5.875% 4/24/23. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 524
Fund pays quarterly 1.045% (4.18% per annum) times notional amount of Liz Claiborne, Inc.
5.00% 7/8/13. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: UBS) 12/20/13 $ 100,000 (4,788)
Fund pays quarterly 0.7575% (3.03% per annum) times notional amount of Macy's Retail
Holdings Inc. 6.625% 4/1/11. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation. (Counterparty: UBS) 12/20/13 $ 100,000 (2,769)
Fund pays quarterly 0.4925% (1.97% per annum) times notional amount of Marks & Spencer
PLC 6.375% 11/7/11. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (1,098)
Fund pays quarterly 0.515% (2.06% per annum) times notional amount of MeadWestvaco
Corp. 6.85% 4/1/12. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Goldman Sachs) 12/20/13 $ 100,000 (1,738)
Fund receives quarterly 0.175% (0.70% per annum) times notional amount of Munich Re
1% 11/1/11. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (323)
Fund receives quarterly 0.7875% (3.15% per annum) times notional amount of Nordic
Telephone Company Holdings 8.25% 5/1/16. Upon a defined credit event the Fund pays
notional amount and takes receipt of a defined deliverable obligation. (Counterparty:
Lehman Brothers) 9/20/12 EUR 35,000 (352)
Fund receives quarterly 1.2625% (5.05% per annum) times notional amount of Nordic
Telephone Company Holdings 8.25% 5/1/16. Upon a defined credit event the Fund pays
notional amount and takes receipt of a defined deliverable obligation. (Counterparty:
JP Morgan) 6/20/13 EUR 30,000 2,810
Fund pays quarterly 0.275% (1.10% per annum) times notional amount of Portugal
Telecom 3.75% 3/26/12. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (306)
Fund pays quarterly 0.30% (1.20% per annum) times notional amount of Renault 4.625%
5/28/10. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (246)
Fund pays quarterly 0.63% (2.52% per annum) times notional amount of Republic of
Indonesia 6.75% 3/10/14. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation.
(Counterparty: JP Morgan) 6/20/13 $ 70,000 (796)
Fund pays semi-annually 0.81% (1.62% per annum) times notional amount of Republic of
Panama 8.875% 9/30/27. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 4/20/13 $ 90,000 (1,248)
Fund pays semi-annually 0.64% (1.28% per annum) times notional amount of Republic of
Peru 8.75% 11/21/33. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 4/20/13 $ 90,000 (909)
Fund pays semi-annually 0.77% (1.54% per annum) times notional amount of Republic of
Peru 8.75% 11/21/33. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 4/20/13 $ 180,000 (4,020)
Fund pays quarterly 0.5625% (2.25% per annum) times notional amount of Republic of
Philippines 10.625% 3/16/25. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation. (Counterparty:
JP Morgan) 6/20/13 $ 70,000 (965)
Fund receives semi-annually 0.835% (1.67% per annum) times notional amount of Republic
of South Africa 6.50% 6/2/14. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: Morgan
Stanley) 4/20/13 $ 350,000 5,389
Fund pays semi-annually 1.43% (2.86% per annum) times notional amount of Republic of
Turkey 11.875% 1/15/30. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 4/20/13 $ 70,000 (1,522)
The accompanying notes are an integral part of the financial statements.
83
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
NET UNREALIZED
EXPIRATION NOTIONAL APPRECIATION
DESCRIPTION DATE AMOUNT (DEPRECIATION)
- ----------- ---------- ---------- --------------
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 $ (208)
Fund receives semi-annually 0.64% (1.28% per annum) times notional amount of Russian
Federation 7.50% 3/31/30. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: Morgan Stanley) 4/20/13 $ 350,000 4,505
Fund pays quarterly 0.1225% (0.49% per annum) times notional amount of RWE AG
6.125% 10/26/12. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (30)
Fund pays quarterly 0.6825% (2.73% per annum) times notional amount of Starwood
Hotels & Resorts Worldwide, Inc. 7.875% 5/1/12. Upon a defined credit event the
Fund receives notional amount and makes delivery of a defined deliverable obligation.
(Counterparty: UBS) 12/20/13 $ 100,000 (6,310)
Fund pays quarterly 0.22% (0.88% per annum) times notional amount of STMicroelectronics
5.006% 3/17/13. Upon a defined credit event the Fund receives notional amount and
makes delivery of a defined deliverable obligation. (Counterparty: Morgan Stanley) 6/20/13 EUR 30,000 (214)
Fund receives quarterly 0.2475% (0.99% per annum) times notional amount of Telecom
Italia SpA 5.375% 1/29/19. Upon a defined credit event the Fund pays notional amount
and takes receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (1,138)
Fund pays quarterly 0.8325% (3.33% per annum) times notional amount of Temple-Inland
Inc. 5.875% 5/1/12. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation. (Counterparty:
Goldman Sachs) 12/20/13 $ 100,000 (1,546)
Fund pays semi-annually 1.435% (2.87% per annum) times notional amount of Ukraine
Government 7.65% 6/11/13. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation. (Counterparty: Morgan
Stanley) 2/20/13 $ 740,000 (10,544)
Fund pays semi-annually 1.375% (2.75% per annum) times notional amount of Ukraine
Government 7.65% 6/11/13. Upon a defined credit event the Fund receives notional
amount and makes delivery of a defined deliverable obligation. (Counterparty: JP
Morgan) 4/20/13 $ 70,000 (264)
Fund receives semi-annually 0.7275% (1.455% per annum) times notional amount of United
Mexican States 7.50% 4/8/33. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: Morgan
Stanley) 3/20/13 $ 370,000 11,170
Fund receives semi-annually 0.62% (1.24% per annum) times notional amount of United
Mexican States 7.50% 4/8/33. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: Morgan
Stanley) 4/20/13 $ 180,000 3,501
Fund receives semi-annually 0.52% (1.04% per annum) times notional amount of United
Mexican States 7.50% 4/8/33. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: JP
Morgan) 4/20/13 $ 350,000 3,489
Fund receives quarterly 0.9375% (3.75% per annum) times notional amount of Univision
Communications Inc. 7.85% 7/15/11. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: Lehman
Brothers) 9/20/08 $ 150,000 (4,053)
Fund pays quarterly 0.4225% (1.69% per annum) times notional amount of Valeo 2.375%
1/1/11. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 309
Fund receives quarterly 0.10% (0.40% per annum) times notional amount of Vattenfall AB
6.00% 3/31/10. Upon a defined credit event the Fund pays notional amount and takes
receipt of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 110
Fund pays quarterly 0.2125% (0.85% per annum) times notional amount of Veolia
Environnement 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) 6/20/13 EUR 30,000 (723)
Fund pays quarterly 0.175% (0.70% per annum) times notional amount of Volvo AB 5.375%
1/26/10. Upon a defined credit event the Fund receives notional amount and makes
delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 6/20/13 EUR 30,000 (187)
Fund pays quarterly 0.125% (0.50% per annum) times notional amount of Walt Disney
Company 5.625% 9/15/16. Upon a defined credit event the Fund receives notional amount
and makes delivery of a defined deliverable obligation. (Counterparty: JP Morgan) 9/20/13 $ 100,000 (962)
Fund receives quarterly 0.225% (0.90% per annum) times notional amount of Zurich
Insurance Co. 4.50% 9/17/14. Upon a defined credit event the Fund pays notional
amount and takes receipt of a defined deliverable obligation. (Counterparty: JP
Morgan) 6/20/13 EUR 30,000 470
--------
$(39,633)
========
The accompanying notes are an integral part of the financial statements.
84
SCHRODER STRATEGIC BOND FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
A summary of the outstanding Interest Rate Swap agreements held by the fund at
April 30, 2008 is as follows:
NET UNREALIZED
EXPIRATION NOTIONAL APPRECIATION
DESCRIPTION DATE AMOUNT (DEPRECIATION)
- ----------- ---------- -------------- --------------
Receive fixed rate of 4.3425% and pay floating rate based on 6-month EUR EURIBOR.
(Counterparty: Lehman Brothers) 11/29/09 EUR 17,160,000 $(135,992)
Receive fixed rate of 4.241% and pay floating rate based on 6-moth EUR EURIBOR.
(Counterparty: Lehman Brothers) 4/16/10 EUR 4,055,000 (29,552)
Receive fixed rate of 4.545% and pay floating rate based on 6-moth EUR EURIBOR.
(Counterparty: Lehman Brothers) 4/23/10 EUR 17,280,000 22,111
Receive fixed rate of 4.4375% and pay floating rate based on 6-moth EUR EURIBOR.
(Counterparty: Lehman Brothers) 4/25/13 EUR 201,000 370
Receive floating rate based on 6-month EUR EURIBOR and pay fixed rate of 4.527%.
(Counterparty: Lehman Brothers) 11/29/17 EUR 3,180,000 23,420
Receive floating rate based on 6-moth EUR EURIBOR and pay fixed rate of 4.611%.
(Counterparty: Lehman Brothers) 4/23/18 EUR 1,050,000 (1,894)
Receive fixed rate of 5.065% and pay floating rate based on 6-month GBP LIBOR.
(Counterparty: Royal Bank of Scotland) 2/26/10 GBP 6,680,000 (66,243)
Receive fixed rate of 5.065% and pay floating rate based on 6-month GBP LIBOR.
(Counterparty: JP Morgan) 3/20/10 GBP 6,430,000 (83,075)
Receive floating rate based on 6-month GBP LIBOR and pay fixed rate of 5.30%.
(Counterparty: Lehman Brothers) 4/23/13 GBP 324,000 649
Receive floating rate based on 6-month JPY LIBOR and pay fixed rate of 1.22%.
(Counterparty: Lehman Brothers) 4/25/13 JPY150,000,000 5,971
Receive fixed rate of 4.65% and pay floating rate based on 3-month SEK STIBOR.
(Counterparty: JP Morgan) 11/06/09 SEK 34,140,000 53,613
Receive fixed rate of 4.53% and pay floating rate based on 3-month SEK STIBOR.
(Counterparty: JP Morgan) 1/14/10 SEK 44,320,000 48,527
Receive floating rate based on 3-month SEK STIBOR and pay fixed rate of 4.8225%.
(Counterparty: JP Morgan) 11/06/17 SEK 7,330,000 (17,580)
Receive floating rate based on 3-month SEK STIBOR and pay fixed rate of 4.77%.
(Counterparty: JP Morgan) 1/14/18 SEK 7,950,000 (11,711)
Receive fixed rate of 2.585% and pay floating rate based on 3-month USD LIBOR.
(Counterparty: Lehman Brothers) 1/25/10 $ 32,930,000 (81,530)
Receive fixed rate of 2.34% and pay floating rate based on 3-month USD LIBOR.
(Counterparty: Lehman Brothers) 3/26/10 $ 620,000 (9,178)
Receive fixed rate of 3.7725% and pay floating rate based on 3-month USD LIBOR.
(Counterparty: Lehman Brothers) 4/25/13 $ 1,780,000 (2,970)
Receive floating rate based on 3-month USD LIBOR and pay fixed rate of 4.00%.
(Counterparty: Lehman Brothers) 1/25/18 $ 7,000,000 129,554
---------
$(155,510)
=========
The accompanying notes are an integral part of the financial statements.
85
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
Shares Value $
- ------------ -------------
EQUITIES - 24.5%
DOMESTIC EQUITY - 11.3%
310,225 Schroder U.S. Small and Mid Cap Opportunities
Fund + 3,390,762
-------------
INTERNATIONAL EQUITIES - 13.2%
49,689 AllianceBernstein Global Research Growth Fund 829,317
2,048 iShares MSCI EAFE Index Fund 155,259
2,161 iShares MSCI Pacific ex-Japan Index Fund 315,722
64,549 Schroder Emerging Market Equity Fund + 893,355
74,562 Schroder International Alpha Fund + 877,596
89,579 Schroder International Diversified Value Fund + 904,749
-------------
3,975,998
TOTAL EQUITIES
(Cost $7,437,904) 7,366,760
-------------
FIXED INCOME - 26.8%
HIGH YIELD BONDS - 13.7%
417,661 Goldman Sachs High Yield Fund 3,111,575
98,985 Schroder Strategic Bond Fund + 999,748
-------------
4,111,323
-------------
EMERGING MARKET BONDS - 13.1%
243,943 PIMCO Developing Local Markets Fund 2,663,861
81,172 PIMCO Emerging Markets Bond Fund 875,849
15,469 PowerShares Emerging Markets
Sovereign Debt Portfolio 398,172
-------------
3,937,882
-------------
TOTAL FIXED INCOME
(Cost $8,033,203) 8,049,205
-------------
COMMODITIES - 10.3%
8,310 iPath Dow Jones-AIG Commodity Index Total Return
ETN (1) 532,920
137,361 PIMCO Commodity RealReturn Strategy Fund 2,561,792
-------------
TOTAL COMMODITIES
(Cost $2,814,609) 3,094,712
-------------
REAL ESTATE - 8.9%
12,414 iShares Dow Jones U.S. Real Estate Index Fund 855,076
38,592 iShares S&P World ex-U.S. Property Index Fund 1,808,807
-------------
TOTAL REAL ESTATE
(Cost $2,549,100) 2,663,883
-------------
Shares Value $
- ------------ -------------
ABSOLUTE RETURN - 6.4%
39,753 Highbridge Statistical Market Neutral Class A
622,536
101,657 Janus Advisor Long/Short Fund 1,293,075
-------------
TOTAL ABSOLUTE RETURN
(Cost $1,927,961) 1,915,611
-------------
INFRASTRUCTURE - 2.1%
260,710 HSBC Infrastructure 645,270
-------------
TOTAL INFRASTRUCTURE
(Cost $590,776) 645,270
-------------
PRIVATE EQUITY -- 1.8%
10,737 PowerShares International Listed Private Equity
Portfolio 242,227
14,724 PowerShares Listed Private Equity Portfolio 298,750
-------------
TOTAL PRIVATE EQUITY
(Cost $561,457) 540,977
-------------
Principal
Amount $
- ------------
SHORT-TERM
INVESTMENT - 18.2%
5,476,963 JPMorgan Chase Bank, N.A.
Time Deposit (Nassau), 1.820%
(Cost $5,476,963) 5,476,963
-------------
TOTAL INVESTMENTS - 99.0%
(Cost $29,391,973) 29,753,381
-------------
OTHER ASSETS LESS
LIABILITIES - 1.0% 299,675
-------------
NET ASSETS - 100.0% $ 30,053,056
=============
+ Investment in affiliated security. (See Note 2 in Notes to Financial
Statements.)
(1) Non-income producing security.
ETN -- Exchange Traded Notes
EUR -- Euro
GBP -- British Pound Sterling
LIBOR -- London InterBank Offered Rate
USD -- United States Dollar
The accompanying notes are an integral part of the financial statements.
86
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
FUTURES CONTRACTS:
The Fund had the following futures contracts outstanding as of April 30, 2008:
NUMBER
OF EXPIRATION NET UNREALIZED
CONTRACTS VALUE DATE APPRECIATION
--------- ---------- ---------- --------------
LONG:
DJ Euro Stoxx 41 $2,407,397 June-08 $22,915
Hang Seng 2 330,228 May-08 1,877
S&P 500 Index 3 1,039,500 June-08 23,465
Topix Index 3 390,364 June-08 5,994
-------
$54,251
=======
FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund had the following forward foreign currency contracts outstanding at
April 30, 2008:
NET UNREALIZED
SETTLEMENT APPRECIATION
DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE (DEPRECIATION)
- ---------- ------------------- ------------------- --------------
7/25/08 EUR 300,000 USD 466,503 $ 67
7/25/08 GBP 625,000 USD 1,231,869 (2,840)
-------
$(2,773)
=======
A summary of the outstanding Total Return Swap agreements held by the Fund at
April 30, 2008 is as follows:
NET UNREALIZED
EXPIRATION NOTIONAL APPRECIATION
DESCRIPTION DATE AMOUNT (DEPRECIATION)
- -------------------------------------------------------- ---------- ---------- --------------
Fund receives semi-annually the return of the S&P 500
Total Return Index based on notional amount. The Fund
pays quarterly USD LIBOR times notional amount.
(Counterparty: JP Morgan). 12/26/08 $3,000,534 $(141,591)
Fund pays semi-annually the return of the Russell 2000
Total Return Index based on notional amount. The Fund
receives quarterly USD LIBOR less 140 basis points
times notional amount. (Counterparty: JP Morgan). 12/26/08 $3,001,608 190,746
---------
$ 49,155
=========
The accompanying notes are an integral part of the financial statements.
87
SCHRODER MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2008 (UNAUDITED)
INTERNATIONAL EMERGING
INTERNATIONAL DIVERSIFIED MARKET U.S.
ALPHA VALUE EQUITY OPPORTUNITIES
FUND FUND FUND FUND
------------- ------------- ----------- -------------
ASSETS
Investments in securities, at value -- Note 2 ....... $52,272,021 $12,891,755 $31,589,759 $254,843,355
Foreign Currency .................................... -- 76,756 2,484 --
Receivable for Fund shares sold ..................... 3,600 -- -- 289,480
Initial margin for futures contracts ................ -- -- -- --
Variation margin receivable ......................... -- -- -- --
Dividends and tax reclaims receivable ............... 265,173 106,839 44,045 129,468
Interest receivable ................................. 1,411 1,233 2,446 34,091
Receivable for securities sold ...................... -- 119,612 450,047 2,297,672
Appreciated swap contracts, at value -- Note 2 ...... -- -- -- --
Unrealized appreciation on spot contracts ........... 1,535 217 87 --
Unrealized appreciation on forward contracts ........ -- -- -- --
Prepaid expenses .................................... 54,850 29,763 16,217 --
Due from Investment Advisor -- Note 3 ............... -- 11,802 -- --
----------- ----------- ----------- ------------
TOTAL ASSETS .................................. 52,598,590 13,237,977 32,105,085 257,594,066
LIABILITIES
Foreign taxes payable ............................... -- 785 51,307 --
Variation margin payable ............................ -- -- -- --
Income distributions payable ........................ -- -- -- --
Depreciated swap contracts, at value -- Note 2 ...... -- -- -- --
Unrealized depreciation on spot contracts ........... -- 282 22 --
Unrealized depreciation on forward contracts ........ -- -- -- --
Payable for securities purchased .................... 459,251 130,314 369,704 511,682
Payable for Fund shares redeemed .................... -- -- -- 73,604
Investment Advisory fees payable -- Note 3 .......... 25,331 -- 17,725 205,687
Sub-administration fees payable -- Note 3 ........... 4,427 1,113 2,604 21,796
Trustees' fees payable -- Note 5 .................... 1,698 1,440 1,552 3,062
Distribution fees payable -- Note 3 ................. 5,132 282 507 1,042
Accrued expenses and other liabilities .............. 70,285 99,229 92,994 6,037
----------- ----------- ----------- ------------
TOTAL LIABILITIES ............................. 566,124 233,445 536,415 822,910
----------- ----------- ----------- ------------
NET ASSETS ....................................... $52,032,466 $13,004,532 $31,568,670 $256,771,156
=========== =========== =========== ============
NET ASSETS
Capital paid-in ..................................... $54,756,733 $13,013,220 $25,927,679 $231,406,808
Undistributed (accumulated net investment loss/
distributions in excess of) net investment
income ........................................... (222,977) 8,061 (184,522) (218,483)
Accumulated net realized gain (loss) on investments,
futures, swap contracts and foreign
currency transactions ............................ (3,349,392) 340,102 2,127,963 8,632,277
Accumulated foreign capital gains tax on
appreciated securities ........................... -- (785) (51,307) --
Net unrealized appreciation (depreciation)
on investments ................................... 844,304 (356,949) 3,748,729 16,950,554
Net unrealized appreciation (depreciation) on futures -- -- -- --
Net unrealized depreciation on swap contracts ....... -- -- -- --
Net unrealized appreciation (depreciation) on
foreign currency translations .................... 3,798 883 128 --
----------- ----------- ----------- ------------
NET ASSETS ....................................... $52,032,466 $13,004,532 $31,568,670 $256,771,156
=========== =========== =========== ============
Investor Shares:
Net assets .......................................... $25,638,269 $11,640,142 $28,554,301 $251,949,572
Total shares outstanding at end of period ........... 2,179,113 1,152,828 2,062,648 11,933,752
Net asset value, offering and redemption price
per share (net assets / shares outstanding) ...... $ 11.77 $ 10.10 $ 13.84 $ 21.11
Advisor Shares:
Net assets .......................................... $26,394,197 $ 1,364,390 $ 3,014,369 $ 4,821,584
Total shares outstanding at end of period ........... 2,247,558 135,302 218,183 229,190
Net asset value, offering and redemption price
per share (net assets / shares outstanding) ...... $ 11.74 $ 10.08 $ 13.82 $ 21.04
Cost of securities ..................................... $51,427,717 $13,248,704 $27,841,030 $237,892,801
Cost of foreign currency ............................... $ -- $ 76,015 $ 2,283 $ --
Proceeds received for swap contracts ................... $ -- $ -- $ -- $ --
The accompanying notes are an integral part of the financial statements.
88
U.S. SMALL NORTH SHORT-TERM
AND MID CAP AMERICAN TOTAL RETURN MUNICIPAL MUNICIPAL STRATEGIC
OPPORTUNITIES EQUITY FIXED INCOME BOND BOND BOND
FUND FUND FUND FUND FUND FUND
- ------------- ------------ ------------ ------------ ------------ -----------
$13,432,091 $692,410,580 $80,754,873 $649,446,030 $176,641,073 $35,479,024
-- -- -- -- -- 790,337
-- -- 231,637 3,680,851 1,028,691 --
-- 108,000 379,469 -- -- 105,865
-- -- 33,394 -- -- --
2,626 709,630 -- -- -- --
1,629 4,324 326,935 8,431,580 2,491,981 461,176
55,400 13,188,554 6,318,003 7,038,250 447,544 1,933,500
-- -- -- -- -- 16,860,870
-- -- -- -- -- 390
-- -- -- -- -- 36,831
34,969 85,020 53,683 135,346 84,015 43,202
2,369 -- 4,727 -- -- --
----------- ------------ ----------- ------------ ------------ -----------
13,529,084 706,506,108 88,102,721 668,732,057 180,693,304 55,711,195
-- -- -- -- -- --
-- 7,950 -- -- -- 8,822
-- -- 231,545 2,182,160 574,553 --
-- -- -- -- -- 17,009,044
-- 129 -- -- -- 15
-- -- -- -- -- 333,232
-- 11,410,626 12,339,824 1,016,680 -- 3,767,789
-- 1,680,936 -- 2,128,948 800,781 --
-- 140,998 -- 188,162 34,145 1,401
1,132 7,332 6,540 57,434 15,712 3,048
1,439 5,848 1,924 5,824 2,946 1,582
80 37 202 4,310 1,397 268
54,781 150,712 69,817 136,789 86,546 94,077
----------- ------------ ----------- ------------ ------------ -----------
57,432 13,404,568 12,649,852 5,720,307 1,516,080 21,219,278
----------- ------------ ----------- ------------ ------------ -----------
$13,471,652 $693,101,540 $75,452,869 $663,011,750 $179,177,224 $34,491,917
=========== ============ =========== ============ ============ ===========
$12,720,813 $657,404,333 $73,969,822 $698,212,809 $189,019,003 $34,329,409
(35,633) 3,542,053 (23,999) 649,333 469,946 221,039
241,363 4,182,317 1,820,751 (164,241) (1,412,990) (126,951)
-- -- -- -- -- --
545,109 27,912,338 165,210 (35,686,151) (8,898,735) 680,091
-- 61,205 (480,739) -- -- (126,309)
-- -- -- -- -- (195,143)
-- (706) 1,824 -- -- (290,219)
----------- ------------ ----------- ------------ ------------ -----------
$13,471,652 $693,101,540 $75,452,869 $663,011,750 $179,177,224 $34,491,917
=========== ============ =========== ============ ============ ===========
$13,053,135 $692,966,388 $74,497,368 $646,561,867 $172,902,009 $33,234,082
1,193,984 65,680,582 7,469,190 68,033,687 18,152,060 3,289,013
$ 10.93 $ 10.55 $ 9.97 $ 9.50 $ 9.53 $ 10.10
$ 418,517 $ 135,152 $ 955,501 $ 16,449,883 $ 6,275,215 $ 1,257,835
38,451 12,827 95,782 1,731,734 658,857 124,471
$ 10.88 $ 10.54 $ 9.98 $ 9.50 $ 9.52 $ 10.11
$12,886,982 $664,498,242 $80,589,663 $685,132,181 $185,539,808 $34,798,933
$ -- $ -- $ -- $ -- $ -- $ 794,865
$ -- $ -- $ -- $ -- $ -- $ 46,969
The accompanying notes are an integral part of the financial statements.
89
SCHRODER MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2008 (UNAUDITED)
MULTI-ASSET
GROWTH
PORTFOLIO
-----------
ASSETS
Investments in securities, at value -- Note 2 ................. $22,687,171
Investments in affiliated securities, at value -- Note 2 ...... 7,066,210
Initial margin for futures contracts .......................... 285,806
Appreciated swap contracts, at value - Note 2 ................. 190,746
Dividends receivable .......................................... 48,499
Deferred offering costs -- Note 2 ............................. 25,305
Variation margin receivable ................................... 12,599
Interest receivable ........................................... 7,133
Unrealized appreciation on forward contracts .................. 67
-----------
TOTAL ASSETS ............................................ 30,323,536
-----------
LIABILITIES
Depreciated swap contracts, at value - Note 2 ................. 141,591
Payable for securities purchased .............................. 39,618
Investment Advisory fees payable -- Note 3 .................... 205
Distribution fees payable, A Shares ........................... 4,944
Distribution fees payable, Advisor Shares ..................... 728
Distribution fees payable, R Shares ........................... 198
Unrealized depreciation on forward contracts .................. 2,840
Sub-administration fees payable -- Note 3 ..................... 2,582
Trustees' fees payable -- Note 5 .............................. 2,132
Accrued expenses and other liabilities ........................ 75,642
-----------
TOTAL LIABILITIES ....................................... 270,480
-----------
NET ASSETS ................................................. $30,053,056
===========
NET ASSETS
Capital paid-in ............................................... $29,800,000
Undistributed net investment income ........................... 224,578
Accumulated net realized loss on investments .................. (436,560)
Net unrealized appreciation on investments .................... 361,408
Net unrealized appreciation on futures ........................ 54,251
Net unrealized appreciation on swap contracts ................. 49,155
Net unrealized appreciation on foreign currency translations .. 224
-----------
NET ASSETS ................................................. $30,053,056
===========
Investor Shares:
Net assets .................................................... $ 504,701
Total shares outstanding at end of period ..................... 50,000
Net asset value, offering and redemption price per share
(net assets / shares outstanding) .......................... $ 10.09
A Shares:
Net assets .................................................... $25,212,275
Total shares outstanding at end of period ..................... 2,500,000
Net asset value, offering and redemption price per share
(net assets / shares outstanding) .......................... $ 10.08
Maximum offering price per share
(A Shares NAV / 95.5%) ..................................... $ 10.55
Advisor Shares:
Net assets .................................................... $ 3,832,289
Total shares outstanding at end of period ..................... 380,000
Net asset value, offering and redemption price per share
(net assets / shares outstanding) .......................... $ 10.08
R Shares:
Net assets .................................................... $ 503,791
Total shares outstanding at end of period ..................... 50,000
Net asset value, offering and redemption price per share
(net assets / shares outstanding) .......................... $ 10.08
Cost of securities ............................................... $22,225,937
Cost of affiliated securities .................................... $ 7,166,036
The accompanying notes are an integral part of the financial statements.
90
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SCHRODER MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED)
INTERNATIONAL EMERGING
INTERNATIONAL DIVERSIFIED MARKET
ALPHA VALUE EQUITY
FUND FUND FUND
------------- ------------- -----------
INVESTMENT INCOME
Dividend income ........................................ $ 594,277 $ 308,655 $ 237,073
Interest income ........................................ 12,552 3,254 11,682
Foreign taxes withheld ................................. (51,182) (29,083) (17,884)
----------- ----------- -----------
TOTAL INCOME ..................................... 555,647 282,826 230,871
----------- ----------- -----------
EXPENSES
Investment Advisory fees -- Note 3 ..................... 248,106 62,637 133,447
Distribution fees, A Shares ............................ -- -- --
Distribution fees, Advisor Shares -- Note 3 ............ 31,670 1,771 2,697
Distribution fees, R Shares ............................ -- -- --
Sub-administration fees -- Note 3 ...................... 26,822 6,603 14,068
Trustees fees -- Note 5 ................................ 6,305 5,321 5,658
Transfer agent fees .................................... 41,263 40,251 40,496
Audit fees ............................................. 16,101 18,347 17,246
Legal fees ............................................. 10,479 11,425 12,094
Custodian fees ......................................... 8,745 25,605 48,517
Printing expenses ...................................... 7,460 7,924 8,485
Insurance .............................................. 5,712 5,161 7,985
Pricing fees ........................................... 3,505 16,855 5,167
Registration fees ...................................... 1,219 14,355 27,500
Amortization of deferred offering costs -- Note 2 ...... -- -- --
Other .................................................. 1,582 4,881 5,133
----------- ----------- -----------
TOTAL EXPENSES ................................... 408,969 221,136 328,493
Expenses waived by Investment Advisor -- Note 3 ........ (59,199) (62,637) (92,245)
Reimbursement from Investment Advisor .................. -- (78,428) --
----------- ----------- -----------
NET EXPENSES ..................................... 349,770 80,071 236,248
----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) ..................... 205,877 202,755 (5,377)
----------- ----------- -----------
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 ........... 199,773 336,843 2,193,953
Net realized gain (loss) on futures .................... -- -- --
Net realized loss on swap contracts .................... -- -- --
Net realized gain (loss) on foreign currency
transactions ........................................ (16,611) 3,343 (29,673)
----------- ----------- -----------
Net realized gain (loss) on investments,
futures, swap contracts and foreign currency
transactions ............................... 183,162 340,186 2,164,280
----------- ----------- -----------
Change in unrealized appreciation (depreciation) on
investments ......................................... (6,488,228) (2,109,848) (5,212,831)
Change in unrealized appreciation (depreciation) on
futures ............................................. -- -- --
Change in unrealized appreciation (depreciation) on swap
contracts ........................................... -- -- --
Change in unrealized on foreign capital gains tax on
appreciated securities .............................. -- 83 3,542
Change in unrealized appreciation (depreciation) on
foreign currency translations ....................... (2,389) (939) (1,287)
----------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on investments, futures, swap
contracts, foreign capital gains tax on
appreciated securities and foreign currency
translations .............................. (6,490,617) (2,110,704) (5,210,576)
----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ......................................... (6,307,455) (1,770,518) (3,046,296)
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ........................... $(6,101,578) $(1,567,763) $(3,051,673)
=========== =========== ===========
(a) Fund commenced investment activities on December 20, 2007.
(1) Includes affiliated income of $7,820.
The accompanying notes are an integral part of the financial statements.
92
U.S. SMALL NORTH SHORT-TERM
U.S. AND MID CAP AMERICAN TOTAL RETURN MUNICIPAL MUNICIPAL STRATEGIC MULTI-ASSET
OPPORTUNITIES OPPORTUNITIES EQUITY FIXED INCOME BOND BOND BOND GROWTH
FUND FUND FUND FUND FUND FUND FUND PORTFOLIO(A)
- ------------- ------------- ------------ ------------ ------------ ----------- --------- ------------
$ 994,055 $ 46,580 $ 8,168,538 $ -- $ -- $ -- $ -- $ 329,951(1)
392,839 20,010 79,873 1,672,336 15,567,524 5,178,055 744,237 53,831
(2,228) (175) (124,481) -- -- -- -- --
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
1,384,666 66,415 8,123,930 1,672,336 15,567,524 5,178,055 744,237 383,782
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
1,308,307 61,036 886,199 92,331 1,324,274 440,020 133,233 79,591
-- -- -- -- -- -- -- 22,276
6,185 1,038 217 1,106 21,612 10,667 2,104 3,363
-- -- -- -- -- -- -- 891
137,889 6,435 46,084 38,933 348,979 115,917 18,727 11,203
11,963 5,299 24,034 6,816 21,689 11,096 5,905 4,737
48,741 40,313 54,139 41,388 52,876 44,806 40,688 61,625
14,389 14,389 14,772 15,528 14,981 14,981 17,465 12,574
25,518 11,371 51,032 14,642 46,671 23,798 13,779 10,122
14,253 2,047 35,334 7,115 20,378 12,609 8,307 1,677
15,597 7,919 36,091 8,361 33,357 16,938 8,920 9,881
13,647 7,603 44,498 6,862 23,054 14,925 8,289 --
515 300 1,561 6,525 45,049 18,082 9,175 1,324
1,064 5,716 1,021 1,382 9,976 1,210 6,980 9,033
-- -- -- -- -- -- -- 29,041
4,202 2,924 8,324 1,602 11,644 2,027 3,697 7,638
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
1,602,270 166,390 1,203,306 242,591 1,974,540 727,076 277,269 264,976
-- (61,036) -- (92,331) (132,006) (111,332) (92,926) (79,591)
-- (18,861) -- (1,421) -- -- -- (26,181)
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
1,602,270 86,493 1,203,306 148,839 1,842,534 615,744 184,343 159,204
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
(217,604) (20,078) 6,920,624 1,523,497 13,724,990 4,562,311 559,894 224,578
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
8,796,665 295,981 7,128,836 675,237 115,436 (825,117) 424,120 (405,673)
-- -- (1,112,898) 1,235,607 -- -- 84,495 (30,196)
-- -- -- -- -- -- (81,594) --
10,839 4 1,888 (1,794) -- -- (246,945) (691)
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
8,807,504 295,985 6,017,826 1,909,050 115,436 (825,117) 180,076 (436,560)
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
(33,251,414) (1,134,139) (87,494,265) 43,409 (30,301,798) (7,302,501) 588,364 361,408
-- -- 61,205 (528,933) -- -- (153,066) 54,251
-- -- -- -- -- -- (223,812) 49,155
-- -- -- -- -- -- -- --
-- -- 7,407 1,824 -- -- (258,694) 224
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
(33,251,414) (1,134,139) (87,425,653) (483,700) (30,301,798) (7,302,501) (47,208) 465,038
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
(24,443,910) (838,154) (81,407,827) 1,425,350 (30,186,362) (8,127,618) 132,868 28,478
- ------------ ----------- ------------ ---------- ------------ ----------- --------- ---------
$(24,661,514) $ (858,232) $(74,487,203) $2,948,847 $(16,461,372) $(3,565,307) $ 692,762 $ 253,056
============ =========== ============ ========== ============ =========== ========= =========
The accompanying notes are an integral part of the financial statements.
93
SCHRODER MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED) AND THE YEAR ENDED OCTOBER 31,
2007
INTERNATIONAL INTERNATIONAL DIVERSIFIED
ALPHA FUND VALUE FUND
-------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007
----------- ------------ ----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............................................. $ 205,877 $ 451,404 $ 202,755 $ 369,674
Net realized gain on investments sold and foreign currency transactions .. 183,162 8,182,229 340,186 1,657,302
Change in unrealized appreciation (depreciation) on investments, foreign
capital gains tax on appreciated securities and foreign currency
translations .......................................................... (6,490,617) 4,455,335 (2,110,704) 1,311,989
----------- ------------ ----------- -----------
Net increase (decrease) in net assets resulting
from operations .................................................... (6,101,578) 13,088,968 (1,567,763) 3,338,965
----------- ------------ ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ....................................................... (508,093) (283,664) (537,490) (101,970)
Advisor Shares ........................................................ (450,753) (178,023) (68,816) (10,713)
Net realized gains:
Investor Shares ....................................................... -- -- (1,356,021) (53,820)
Advisor Shares ........................................................ -- -- (182,135) (6,027)
----------- ------------ ----------- -----------
Total dividends and distributions ..................................... (958,846) (461,687) (2,144,462) (172,530)
----------- ------------ ----------- -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares .......................................................... 1,154,896 11,133,510 1,133,605 336,678
Reinvestment of distributions ............................................ 487,919 282,490 1,893,510 155,790
Redemption of shares ..................................................... (878,404) (13,524,072) (600,000) (334,837)
Redemption fees -- Note 4 ................................................ 279 65 -- --
----------- ------------ ----------- -----------
Total increase (decrease) from Investor Share transactions ............ 764,690 (2,108,007) 2,427,115 157,631
----------- ------------ ----------- -----------
ADVISOR SHARES:
Sales of shares .......................................................... 2,330,745 17,526,815 563,930 441,159
Reinvestment of distributions ............................................ 443,180 175,168 250,952 16,740
Redemption of shares ..................................................... (1,245,317) (15,872,841) (664,010) (180,613)
Redemption fees -- Note 4 ................................................ 8,118 486 -- 316
----------- ------------ ----------- -----------
Total increase (decrease) from Advisor Share transactions ............. 1,536,726 1,829,628 150,872 277,602
----------- ------------ ----------- -----------
Net increase (decrease) in net assets from share transactions ......... 2,301,416 (278,379) 2,577,987 435,233
----------- ------------ ----------- -----------
Total increase (decrease) in net assets ............................... (4,759,008) 12,348,902 (1,134,238) 3,601,668
NET ASSETS
Beginning of Period ...................................................... 56,791,474 44,442,572 14,138,770 10,537,102
----------- ------------ ----------- -----------
End of Period ............................................................ $52,032,466 $ 56,791,474 $13,004,532 $14,138,770
=========== ============ =========== ===========
Undistributed (accumulated net investment loss/ distributions in excess
of) net investment income ............................................. $ (222,977) $ 529,992 $ 8,061 $ 411,612
=========== ============ =========== ===========
The accompanying notes are an integral part of the financial statements.
94
EMERGING MARKET U.S. OPPORTUNITIES U.S. SMALL AND MID CAP
EQUITY FUND FUND OPPORTUNITIES FUND
- ------------------------- --------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007 2008 2007
- ----------- ----------- ------------ ------------ ----------- -----------
$ (5,377) $ 66,570 $ (217,604) $ 259,980 $ (20,078) $ (26,202)
2,164,280 3,450,635 8,807,504 27,722,406 295,985 737,801
(5,210,576) 7,924,344 (33,251,414) 23,437,453 (1,134,139) 1,373,595
- ----------- ----------- ------------ ------------ ----------- -----------
(3,051,673) 11,441,549 (24,661,514) 51,419,839 (858,232) 2,085,194
- ----------- ----------- ------------ ------------ ----------- -----------
(213,132) (59,930) (355,955) -- -- (3,936)
(14,585) (3,237) -- -- -- --
(3,019,681) -- (26,787,647) (20,939,518) (612,596) --
(258,346) -- (527,482) (103,868) (85,590) --
- ----------- ----------- ------------ ------------ ----------- -----------
(3,505,744) (63,167) (27,671,084) (21,043,386) (698,186) (3,936)
- ----------- ----------- ------------ ------------ ----------- -----------
4,768,884 4,555,976 8,103,564 67,551,529 4,280,782 2,090,576
3,232,813 59,930 26,496,365 20,495,365 612,596 3,936
(1,200,000) (150,000) (33,683,465) (46,481,850) (686,790) (700,051)
-- -- 2,995 8,024 2,000 1
- ----------- ----------- ------------ ------------ ----------- -----------
6,801,697 4,465,906 919,459 41,573,068 4,208,588 1,394,462
- ----------- ----------- ------------ ------------ ----------- -----------
3,507,811 783,982 525,581 6,029,859 38,248 897,166
258,744 3,237 512,281 60,689 85,590 --
(2,810,618) (83,180) (1,114,737) (1,457,593) (921,913) (219,536)
92 -- -- 2,390 -- 194
- ----------- ----------- ------------ ------------ ----------- -----------
956,029 704,039 (76,875) 4,635,345 (798,075) 677,824
- ----------- ----------- ------------ ------------ ----------- -----------
7,757,726 5,169,945 842,584 46,208,413 3,410,513 2,072,286
- ----------- ----------- ------------ ------------ ----------- -----------
1,200,309 16,548,327 (51,490,014) 76,584,866 1,854,095 4,153,544
30,368,361 13,820,034 308,261,170 231,676,304 11,617,557 7,464,013
- ----------- ----------- ------------ ------------ ----------- -----------
$31,568,670 $30,368,361 $256,771,156 $308,261,170 $13,471,652 $11,617,557
=========== =========== ============ ============ =========== ===========
$ (184,522) $ 48,572 $ (218,483) $ 355,076 $ (35,633) $ (15,555)
=========== =========== ============ ============ =========== ===========
The accompanying notes are an integral part of the financial statements.
95
SCHRODER MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED) AND THE YEAR ENDED OCTOBER 31,
2007
NORTH AMERICAN TOTAL RETURN FIXED
EQUITY FUND INCOME FUND
------------------------------ --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007
------------- -------------- ----------- ------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ............................................... $ 6,920,624 $ 17,900,409 $ 1,523,497 $ 1,971,368
Net realized gain (loss) on investments sold, futures,
swap contracts and foreign currency transactions ................. 6,017,826 151,080,379+ 1,909,050 209,640
Change in unrealized appreciation (depreciation) on
investments, futures, swap contracts and foreign
currency translations ............................................ (87,425,653) (26,490,841) (483,700) 117,455
------------- -------------- ----------- ------------
Net increase (decrease) in net assets resulting
from operations ............................................... (74,487,203) 142,489,947 2,948,847 2,298,463
------------- -------------- ----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income:
Investor Shares .................................................. (16,785,204) (23,398,287) (1,500,031) (1,948,060)
Advisor Shares ................................................... (2,383) (2,080) (17,064) (38,536)
Net realized gains:
Investor Shares .................................................. (89,455,958) (53,303,193) (99,066) --
Advisor Shares ................................................... (14,868) (5,293) (1,187) --
------------- -------------- ----------- ------------
Total dividends .................................................. (106,258,413) (76,708,853) (1,617,348) (1,986,596)
------------- -------------- ----------- ------------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ..................................................... 2,726,591 132,568,048 1,013,496 12,479,152
Proceeds from shares sold in-kind ................................... -- -- -- 46,437,681
Reinvestment of distributions ....................................... 92,825,863 18,112,110 1,599,097 1,938,673
Redemption of shares ................................................ (31,867,426) (372,052,319) (690,366) (11,710,334)
Redemption of shares in-kind ........................................ -- (296,385,601) -- --
------------- -------------- ----------- ------------
Total increase (decrease) from
Investor Share transactions ................................... 63,685,028 (517,757,762) 1,922,227 49,145,172
------------- -------------- ----------- ------------
ADVISOR SHARES:
Sales of shares ..................................................... 14,513 10,000 71,000 682,413
Reinvestment of distributions ....................................... 17,252 7,373 18,251 38,536
Redemption of shares ................................................ -- -- (607) (922,051)
Redemption fees -- Note 4 ........................................... -- -- -- --
------------- -------------- ----------- ------------
Total increase (decrease) from Advisor Share
transactions .................................................. 31,765 17,373 88,644 (201,102)
------------- -------------- ----------- ------------
Net increase (decrease) in net assets
from share transactions ....................................... 63,716,793 (517,740,389) 2,010,871 48,944,070
------------- -------------- ----------- ------------
Total increase (decrease) in net assets .......................... (117,028,823) (451,959,295) 3,342,370 49,255,937
NET ASSETS
Beginning of Period ................................................. 810,130,363 1,262,089,658 72,110,499 22,854,562
------------- -------------- ----------- ------------
End of Period ....................................................... $ 693,101,540 $ 810,130,363 $75,452,869 $ 72,110,499
============= ============== =========== ============
Undistributed (distributions in excess of)
net investment income ............................................ $ 3,542,053 $ 13,409,016 $ (23,999) $ (30,401)
============= ============== =========== ============
+ 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.
96
MUNICIPAL SHORT-TERM MUNICIPAL STRATEGIC
BOND FUND BOND FUND BOND FUND
- ---------------------------- ---------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007 2008 2007
- ------------- ------------ ------------- ------------ ----------- -----------
$ 13,724,990 $ 17,861,413 $ 4,562,311 $ 8,284,067 $ 559,894 $ 1,370,104
115,436 (24,123) (825,117) (111,799) 180,076 (109,483)
(30,301,798) (7,535,301) (7,302,501) (1,921,515) (47,208) (37,345)
- ------------- ------------ ------------- ------------ ----------- -----------
(16,461,372) 10,301,989 (3,565,307) 6,250,753 692,762 1,223,276
- ------------- ------------ ------------- ------------ ----------- -----------
(13,370,360) (16,860,382) (4,206,463) (7,844,919) (457,002) (1,252,858)
(336,887) (623,428) (158,718) (256,771) (25,749) (112,241)
-- -- -- -- -- --
-- -- -- -- -- --
- ------------- ------------ ------------- ------------ ----------- -----------
(13,707,247) (17,483,810) (4,365,181) (8,101,690) (482,751) (1,365,099)
- ------------- ------------ ------------- ------------ ----------- -----------
143,979,151 477,445,946 46,836,762 98,233,317 2,000,000 14,848,074
-- -- -- -- -- --
12,865,288 16,096,849 3,527,236 6,126,048 289,817 846,358
(136,904,754) (75,530,675) (103,360,641) (56,312,635) (1,258,402) (2,781,714)
-- -- -- -- -- --
- ------------- ------------ ------------- ------------ ----------- -----------
19,939,685 418,012,120 (52,996,643) 48,046,730 1,031,415 12,912,718
- ------------- ------------ ------------- ------------ ----------- -----------
2,568,703 8,651,293 1,226,982 9,091,232 23,000 3,128,166
331,183 613,823 130,549 223,571 25,484 112,241
(3,848,122) (5,622,547) (5,709,207) (2,057,135) (1,119,703) (1,937,828)
-- -- -- -- -- 126
- ------------- ------------ ------------- ------------ ----------- -----------
(948,236) 3,642,569 (4,351,676) 7,257,668 (1,071,219) 1,302,705
- ------------- ------------ ------------- ------------ ----------- -----------
18,991,449 421,654,689 (57,348,319) 55,304,398 (39,804) 14,215,423
- ------------- ------------ ------------- ------------ ----------- -----------
(11,177,170) 414,472,868 (65,278,807) 53,453,461 170,207 14,073,600
674,188,920 259,716,052 244,456,031 191,002,570 34,321,710 20,248,110
- ------------- ------------ ------------- ------------ ----------- -----------
$ 663,011,750 $674,188,920 $ 179,177,224 $244,456,031 $34,491,917 $34,321,710
============= ============ ============= ============ =========== ===========
$ 649,333 $ 631,590 $ 469,946 $ 272,816 $ 221,039 $ 143,896
============= ============ ============= ============ =========== ===========
The accompanying notes are an integral part of the financial statements.
97
SCHRODER MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED)
MULTI-ASSET
GROWTH PORTFOLIO
----------------
PERIOD ENDED
APRIL 30,
2008(a)
----------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ....................................... $ 224,578
Net realized loss on investments sold, futures and foreign
currency transactions .................................... (436,560)
Change in unrealized appreciation on investments, futures,
swap contracts and foreign currency translations ......... 465,038
-----------
Net increase in net assets resulting from operations ..... 253,056
-----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ............................................. 500,000
-----------
Total increase from Investor Share transactions .......... 500,000
-----------
A SHARES:
Sales of shares ............................................. 25,000,000
-----------
Total increase from A Share transactions ................. 25,000,000
-----------
ADVISOR SHARES:
Sales of shares ............................................. 3,800,000
-----------
Net increase in Advisor Share transactions ............... 3,800,000
-----------
R SHARES:
Sales of shares ............................................. 500,000
-----------
Net increase in R Share transactions ..................... 500,000
-----------
Net increase in net assets from share transactions........ 29,800,000
-----------
Total increase in net assets ............................. 30,053,056
NET ASSETS
Beginning of Period ......................................... --
-----------
End of Period ............................................... $30,053,056
===========
Undistributed net investment income ......................... $ 224,578
===========
(a) Fund commenced investment activities on December 20, 2007.
The accompanying notes are an integral part of the financial statements.
98
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SCHRODER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET
NET ASSET REALIZED DIVIDENDS
VALUE, NET AND TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD INCOME (LOSS) GAINS OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ------------- ---------- ---------- ---------- ------------- -------------
INTERNATIONAL ALPHA FUND
Investor Shares
2008* ............... $13.44 $ 0.05(1) $(1.48)+ $(1.43) $(0.24) $ -- $(0.24)
2007 ................ 10.64 0.11(1) 2.78+ 2.89 (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)
Advisor Shares
2008* ............... $13.40 $ 0.04(1) $(1.49)+ $(1.45) $(0.21) $ -- $(0.21)
2007 ................ 10.64 0.07(1) 2.77+ 2.84 (0.08) -- (0.08)
2006(b) ............. 10.23 0.00(e) 0.41+ 0.41 -- -- --
INTERNATIONAL DIVERSIFIED VALUE FUND
Investor Shares
2008* ............... $13.65 $ 0.19 $(1.67) $(1.48) $(0.59) $(1.48) $(2.07)
2007 ................ 10.54 0.48 2.80 3.28 (0.11) (0.06) (0.17)
2006(c) ............. 10.00 0.04 0.50 0.54 -- -- --
Advisor Shares
2008* ............... $13.62 $ 0.21 $(1.71) $(1.50) $(0.56) $(1.48) $(2.04)
2007 ................ 10.53 0.43 2.83+ 3.26 (0.11) (0.06) (0.17)
2006(c) ............. 10.00 0.04 0.49 0.53 -- -- --
EMERGING MARKET EQUITY FUND
Investor Shares
2008* ............... $17.91 $(0.00)(1)(e) $(1.98) $(1.98) $(0.14) $(1.95) $(2.09)
2007 ................ 10.55 0.04 7.37 7.41 (0.05) -- (0.05)
2006(d) ............. 10.00 0.04 0.51 0.55 -- -- --
Advisor Shares
2008* ............... $17.86 $(0.02)(1) $(1.96)+ $(1.98) $(0.11) $(1.95) $(2.06)
2007 ................ 10.53 0.02 7.34 7.36 (0.03) -- (0.03)
2006(d) ............. 10.00 0.04 0.49 0.53 -- -- --
U.S. OPPORTUNITIES FUND
Investor Shares
2008* ............... $25.40 $(0.01)(1) $(1.95)+ $(1.96) $(0.03) $(2.30) $(2.33)
2007 ................ 23.06 0.02(1) 4.30+ 4.32 -- (1.98) (1.98)
2006 ................ 19.66 --(e) 4.15+ 4.15 -- (0.75) (0.75)
2005 ................ 19.58 --(e) 2.11+ 2.11 -- (2.03) (2.03)
2004 ................ 16.18 --(e) 3.40+ 3.40 -- -- --
2003 ................ 12.57 (0.16) 4.11 3.95 -- (0.34) (0.34)
Advisor Shares
2008* ............... $25.32 $(0.04)(1) $(1.94) $(1.98) $ -- $(2.30) $(2.30)
2007 ................ 23.04 (0.04)(1) 4.30++ 4.26 -- (1.98) (1.98)
2006(b) ............. 22.21 --(e) 0.83 0.83 -- -- --
* For the six months ended April 30, 2008 (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.
+ Includes redemption fees. Amount was less than $0.01 per share.
++ Includes redemption fees of $0.01 per share.
(1) Per share net investment loss 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) 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 August 30, 2006. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(d) Commenced operations on March 31, 2006. All ratios for the period have been
annualized, except for the Total Return and the Portfolio Turnover Rate.
(e) Amount was less than $0.01 per share.
The accompanying notes are an integral part of the financial statements.
100
RATIO OF
RATIO OF NET INVESTMENT
EXPENSES TO RATIO OF INCOME (LOSS)
AVERAGE NET EXPENSES TO TO
ASSETS AVERAGE NET AVERAGE NET
(INCLUDING ASSETS ASSETS
WAIVERS AND (EXCLUDING (INCLUDING
NET ASSET NET ASSETS, REIMBURSEMENTS, WAIVERS, WAIVERS, PORTFOLIO
VALUE, END TOTAL END OF EXCLUDING REIMBURSEMENTS REIMBURSEMENTS TURNOVER
OF PERIOD RETURN(a) PERIOD (000) OFFSETS) AND OFFSETS) AND OFFSETS) RATE
- ---------- --------- ------------ --------------- -------------- -------------- ---------
$11.77 (10.72)% $ 25,638 1.25% 1.48% 0.92% 45%
13.44 27.38 28,483 1.25 1.54 0.92 112
10.64 29.86 22,962 1.25 2.45 1.68 76
8.35 19.45 6,545 1.25 3.88 1.85 126
7.08 13.31 5,233 1.25 3.36 1.16 136
6.37 22.66 6,242 1.25 3.27 2.09 50
$11.74 (10.85)% $ 26,394 1.50% 1.74% 0.70% 45%
13.40 26.92 28,308 1.50 1.77 0.60 112
10.64 4.01 21,481 1.50 2.43 (0.03) 76
$10.10 (11.09)% $ 11,640 1.25% 3.50% 3.30% 26%
13.65 31.56 12,479 1.25 3.85 2.97 58
10.54 5.40 9,484 1.25 8.61 2.30 7
$10.08 (11.25)% $ 1,365 1.50% 3.76% 2.94% 26%
13.62 31.31 1,660 1.50 4.12 2.76 58
10.53 5.30 1,053 1.50 8.86 2.05 7
$13.84 (11.25)% $ 28,554 1.75% 2.44% (0.02)% 64%
17.91 70.50 27,774 1.75 2.68 0.37 107
10.55 5.50 12,767 1.87** 4.88 0.88 49
$13.82 (11.27)% $ 3,015 2.00% 2.69% (0.32)% 64%
17.86 70.09 2,594 2.00 2.95 0.08 107
10.53 5.30 1,053 2.12** 5.10 0.71 49
$21.11 (7.85)% $251,949 1.22% 1.22% (0.13)% 34%
25.40 20.02 302,351 1.25 1.25 0.10 77
23.06 21.67 231,009 1.21 1.21 (0.11) 101
19.66 11.26 140,467 1.13 1.13 (0.29) 107
19.58 21.01 73,679 1.62 1.62 (0.83) 144
16.18 32.13 46,783 1.93 2.25 (1.22) 162
$21.04 (7.96)% $ 4,822 1.47% 1.47% (0.38)% 34%
25.32 19.76 5,910 1.50 1.50 (0.17) 77
23.04 3.74 667 1.68 1.68 (0.31) 101
The accompanying notes are an integral part of the financial statements.
101
SCHRODER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET
REALIZED
NET ASSET NET AND DIVIDENDS
VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING INCOME GAINS INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD (LOSS) (LOSSES) OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ------------- ---------- ---------- ---------- ------------- -------------
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2008* ............... $12.56 $(0.02)(1) $(0.86)+ $(0.88) $ -- $(0.75) $(0.75)
2007 ................ 10.25 (0.03)(1) 2.35+ 2.32 (0.01) -- (0.01)
2006(b) ............. 10.00 --(h) 0.25 0.25 -- -- --
Advisor Shares
2008* ............... $12.53 $(0.03)(1) $(0.87) $(0.90) $ -- $(0.75) $(0.75)
2007 ................ 10.23 (0.05)(1) 2.35+ 2.30 -- -- --
2006(b) ............. 10.00 --(h) 0.23 0.23 -- -- --
NORTH AMERICAN EQUITY FUND
Investor Shares
2008* ............... $13.52 $ 0.11 $(1.29) $(1.18) $(0.28) $(1.51) $(1.79)
2007 ................ 12.63 0.31 1.49 1.80 (0.28) (0.63) (0.91)
2006 ................ 11.15 0.23 1.53 1.76 (0.10) (0.18) (0.28)
2005(c) ............. 11.00 0.06 0.63 0.69 (0.05) (0.49) (0.54)
2005(d) ............. 10.88 0.22 0.62 0.84 (0.20) (0.52) (0.72)
2004(d)(e) .......... 10.00 0.09 0.86 0.95 (0.04) (0.03) (0.07)
Advisor Shares
2008* ............... $13.48 $ 0.12 $(1.31) $(1.19) $(0.24) $(1.51) $(1.75)
2007 ................ 12.61 0.19 1.56 1.75 (0.25) (0.63) (0.88)
2006(b) ............. 11.84 0.22 0.55 0.77 -- -- --
TOTAL RETURN FIXED INCOME FUND
Investor Shares
2008* ............... $ 9.79 $ 0.20 $ 0.19 $ 0.39 $(0.20) $(0.01) $(0.21)
2007 ................ 9.81 0.50 (0.03) 0.47 (0.49) -- (0.49)
2006 ................ 9.85 0.48 (0.01) 0.47 (0.49) (0.02) (0.51)
2005(f) ............. 10.00 0.30 (0.15) 0.15 (0.30) -- (0.30)
Advisor Shares
2008* ............... $ 9.79 $ 0.19 $ 0.20 $ 0.39 $(0.19) $(0.01) $(0.20)
2007 ................ 9.82 0.47 (0.04) 0.43 (0.46) -- (0.46)
2006 ................ 9.85 0.44 -- 0.44 (0.45) (0.02) (0.47)
2005(f) ............. 10.00 0.28 (0.15) 0.13 (0.28) -- (0.28)
MUNICIPAL BOND FUND
Investor Shares
2008* ............... $ 9.94 $ 0.20 $(0.44) $(0.24) $(0.20) $ -- $(0.20)
2007 ................ 10.10 0.40 (0.16) 0.24 (0.40) -- (0.40)
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(g) ............. 10.00 0.24 0.11 0.35 (0.23) -- (0.23)
Advisor Shares
2008* ............... $ 9.94 $ 0.19 $(0.44) $(0.25) $(0.19) $ -- $(0.19)
2007 ................ 10.10 0.38 (0.16) 0.22 (0.38) -- (0.38)
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(g) ............. 10.00 0.21 0.11 0.32 (0.21) -- (0.21)
* For the six months ended April 30, 2008 (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.
*** Had custody offsets been included the ratios would have been 0.55% and
0.80% for the Investor Shares and Advisor Shares, respectively.
+ Includes redemption fees. Amount was less than $0.01 per share.
(1) Per share net investment income 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) Commenced operations on March 31, 2006. 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.
102
RATIO OF RATIO OF
EXPENSES TO RATIO OF NET INVESTMENT
AVERAGE NET EXPENSES TO INCOME (LOSS) TO
ASSETS AVERAGE NET AVERAGE NET
(INCLUDING ASSETS ASSETS
WAIVERS AND (EXCLUDING (INCLUDING
NET ASSET NET ASSETS, REIMBURSEMENTS, WAIVERS, WAIVERS, PORTFOLIO
VALUE, END TOTAL END OF EXCLUDING REIMBURSEMENTS REIMBURSEMENTS TURNOVER
OF PERIOD RETURN(a) PERIOD (000) OFFSETS) AND OFFSETS) AND OFFSETS) RATE
- ---------- --------- ------------ --------------- -------------- -------------- ---------
$10.93 (7.06)% $ 13,053 1.40% 2.71% (0.30)% 48%
12.56 22.60 10,197 1.40 3.13 (0.23) 93
10.25 2.50 6,952 1.55** 6.14 (0.05) 46
$10.88 (7.24)% $ 419 1.65% 3.00% (0.47)% 48%
12.53 22.48 1,420 1.65 3.37 (0.45) 93
10.23 2.30 512 1.79** 6.89 (0.33) 46
$10.55 (9.26)% $ 692,967 0.34% 0.34% 1.97% 64%
13.52 15.08 809,998 0.33 0.33 1.82 38
12.63 16.04 1,261,983 0.33 0.33 1.66 51
11.15 6.35 1,303,276 0.35 0.35 1.39 30
11.00 7.59 883,146 0.33 0.33 1.79 89
10.88 9.56 890,929 0.37 0.37 1.29 54
$10.54 (9.37)% $ 135 0.69% 0.69% 1.60% 64%
13.48 14.66 133 0.68 0.68 1.41 38
12.61 6.50 107 0.68 0.68 1.17 51
$ 9.97 4.08% $ 74,497 0.40% 0.65% 4.13% 222%
9.79 4.90 71,259 0.40 0.96 4.97 464
9.81 4.90 21,795 0.40 2.05 4.86 295
9.85 1.51 9,138 0.40 3.05 3.61 571
$ 9.98 4.05% $ 956 0.65% 0.91% 3.88% 222%
9.79 4.53 852 0.65 1.48 4.73 464
9.82 4.56 1,060 0.65 2.37 4.59 295
9.85 1.30 1,013 0.65 3.30 3.35 571
$ 9.50 (2.42)% $ 646,562 0.55% 0.59% 4.16% 9%
9.94 2.45 656,027 0.55 0.63 4.09 6
10.10 5.36 244,919 0.55 0.77 4.06 15
9.97 2.14 96,114 0.55 0.93 3.70 27
10.12 3.53 45,781 0.56*** 1.41 2.82 46
$ 9.50 (2.54)% $ 16,450 0.80% 0.84% 3.90% 9%
9.94 2.19 18,162 0.80 0.88 3.83 6
10.10 5.10 14,797 0.80 1.01 3.79 15
9.97 1.99 8,375 0.80 1.18 3.52 27
10.11 3.21 1,888 0.81*** 1.64 2.49 46
(c) For the six months ended October 31, 2005. The North American Equity Fund's
fiscal year 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.
(d) For the year or period ended April 30.
(e) Commenced operations on September 17, 2003. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(f) Commenced operations on December 31, 2004. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(g) Commenced operations on December 31, 2003. 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.
103
SCHRODER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2008 (UNAUDITED) AND THE PERIODS ENDED OCTOBER
31, (UNLESS OTHERWISE INDICATED) SELECTED PER SHARE DATA AND RATIOS FOR A SHARE
OUTSTANDING THROUGHOUT EACH PERIOD
NET
REALIZED
NET ASSET AND DIVIDENDS
VALUE, NET UNREALIZED TOTAL FROM FROM NET DISTRIBUTIONS
BEGINNING INVESTMENT GAINS INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD INCOME (LOSSES) OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ------------- ---------- ---------- ---------- ------------- -------------
SHORT-TERM MUNICIPAL BOND FUND
Investor Shares
2008* ............... $ 9.87 $0.20 $(0.35) $(0.15) $(0.19) $-- $(0.19)
2007 ................ 9.96 0.39 (0.10) 0.29 (0.38) -- (0.38)
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(b) ............. 10.00 0.15 (0.03) 0.12 (0.15) -- (0.15)
Advisor Shares
2008* ............... $ 9.87 $0.20 $(0.37) $(0.17) $(0.18) $-- $(0.18)
2007 ................ 9.96 0.36 (0.09) 0.27 (0.36) -- (0.36)
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(b) ............. 10.00 0.13 (0.03) 0.10 (0.13) -- (0.13)
STRATEGIC BOND FUND
Investor Shares
2008* ............... $10.05 $0.16(1) $ 0.03 $ 0.19 $(0.14) $-- $(0.14)
2007 ................ 10.05 0.42(1) (0.01) 0.41 (0.41) -- (0.41)
2006(c) ............. 10.00 0.10 0.03 0.13 (0.08) -- (0.08)
Advisor Shares
2008* ............... $10.05 $0.16(1) $ 0.03 $ 0.19 $(0.13) $-- $(0.13)
2007 ................ 10.04 0.39(1) (0.00)+(e) 0.39 (0.38) -- (0.38)
2006(c) ............. 10.00 0.10 0.01 0.11 (0.07) -- (0.07)
MULTI-ASSET GROWTH PORTFOLIO
Investor Shares
2008(d) ............. $10.00 $0.08(1) $ 0.01 $ 0.09 $ -- $-- $ --
A Shares
2008(d) ............. $10.00 $0.08(1) $ --(e) $ 0.08 $ -- $-- $ --
Advisor Shares
2008(d) ............. $10.00 $0.08(1) $ --(e) $ 0.08 $ -- $-- $ --
R Shares
2008(d) ............. $10.00 $0.07(1) $ 0.01 $ 0.08 $ -- $-- $ --
* For the six months ended April 30, 2008 (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.
*** 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.
(1) Per share net investment income 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) Commenced operations on December 31, 2003. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(c) Commenced operations on June 30, 2006. All ratios for the period have been
annualized, except for the Total Return and the Portfolio Turnover Rate.
(d) Commenced operations on December 20, 2007. All ratios for the period have
been annualized, except for the Total Return and the Portfolio Turnover
Rate.
(e) Amount was less than $0.01 per share.
The accompanying notes are an integral part of the financial statements.
104
RATIO OF RATIO OF
EXPENSES TO RATIO OF NET INVESTMENT
AVERAGE NET EXPENSES TO INCOME TO
ASSETS AVERAGE NET AVERAGE NET
(INCLUDING ASSETS ASSETS
WAIVERS AND (EXCLUDING (INCLUDING
NET ASSET NET ASSETS, REIMBURSEMENTS, WAIVERS, WAIVERS, PORTFOLIO
VALUE, END TOTAL END OF EXCLUDING REIMBURSEMENTS REIMBURSEMENTS TURNOVER
OF PERIOD RETURN(a) PERIOD (000) OFFSETS) AND OFFSETS) AND OFFSETS) RATE
- ---------- --------- ------------ --------------- -------------- -------------- ---------
$ 9.53 (1.50)% $172,902 0.55% 0.65% 4.16% 14%
9.87 22.96 233,532 0.55 0.67 3.92 21
9.96 13.97 187,268 0.55 0.77 3.55 24
9.92 12.47 131,062 0.55 0.85 3.03 36
9.97 1.26 74,031 0.56** 1.30 1.95 17
$ 9.52 (1.73)% $ 6,275 0.80% 0.90% 3.91% 14%
9.87 2.70 10,924 0.80 0.92 3.69 21
9.96 3.71 3,735 0.80 1.01 3.29 24
9.92 2.21 3,112 0.80 1.10 2.80 36
9.97 1.05 1,320 0.81** 1.44 1.68 17
$10.10 1.90% $ 33,234 1.03% 1.55% 3.15% 221%
10.05 4.13 32,023 1.15 1.77 4.17 725
10.05 1.28 19,236 1.23*** 4.67 3.56 321
$10.11 1.87% $ 1,258 1.31% 1.82% 3.20% 221%
10.05 3.98 2,299 1.40 2.15 3.89 725
10.04 1.12 1,012 1.48*** 4.92 3.31 321
$10.09 0.90% $ 505 1.25% 2.25% 2.36% 73%
$10.08 0.80% $ 25,212 1.50% 2.50% 2.11% 73%
$10.08 0.80% $ 3,832 1.50% 2.50% 2.13% 73%
$10.08 0.80% $ 504 1.75% 2.75% 1.86% 73%
The accompanying notes are an integral part of the financial statements.
105
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2008 (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 (the "Investment Company Act"). 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
series: Schroder International Alpha Fund and Schroder U.S. Opportunities Fund
(collectively, the "SCFD Funds"). Advisor Shares of Schroder International Alpha
and Schroder U.S. Opportunities Funds were offered beginning on May 15, 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 series: Schroder International Diversified
Value Fund, Schroder Emerging Market Equity Fund, Schroder U.S. Small and Mid
Cap Opportunities Fund, Schroder Total Return Fixed Income Fund, Schroder
Municipal Bond Fund, Schroder Short-Term Municipal Bond Fund, Schroder Strategic
Bond Fund and Schroder Multi-Asset Growth Portfolio (collectively, the "SST
Funds," and together with the SCFD Funds and the SGST Fund, the "Funds").
Schroder Emerging Market Equity Fund and Schroder U.S. Small and Mid Cap
Opportunities Fund commenced operations on March 31, 2006. Schroder
International Diversified Value Fund, Schroder Strategic Bond Fund and Schroder
Multi-Asset Growth Portfolio commenced operations as of August 30, 2006, June
30, 2006 and December 20, 2007, respectively. An additional series of SST,
Schroder Enhanced Income Fund, was liquidated following its close of business on
April 29, 2008.
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 sales price or, if none,
mid-market price for unlisted securities with readily available market
quotations. 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
106
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
national exchange; the security's primary trading market is temporarily closed
at a time when under normal conditions it would be open; or the security's
primary pricing source is not able or willing to provide a price. When a
security is valued in accordance with the Fair Value Procedures, the Committee
will determine the value after taking into consideration relevant information
reasonably available to the Committee.
Investments in registered investment companies are priced at each fund's daily
net asset value. The assets of Multi-Asset Growth Portfolio consist of the
investments in underlying affiliated registered investment companies, which are
valued at their respective daily net asset values in accordance with the above,
Board-approved, pricing procedures.
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular security's
last trade and the time at which a Fund calculates its net asset value. The
closing prices of such securities may no longer reflect their market values at
the time the Fund calculates its net asset value if an event that could
materially affect the value of those securities (a "Significant Event") has
occurred between the time of the security's last trade and the time that the
Fund calculates its net asset value. A Significant Event may relate to a single
issuer or to an entire market sector. If a Fund becomes aware of a Significant
Event that has occurred with respect to a security or group of securities after
the closing of the exchange or market on which the security or securities
principally trade, but before the time at which the Fund calculates its net
asset value, a Committee meeting may be called.
Schroder International Alpha, Schroder International Diversified Value and
Schroder Emerging Market Equity Funds use a third party fair valuation vendor
which provides a fair value for securities of companies located in countries
outside the Western Hemisphere held by the 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. 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 Funds will typically value such
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 unrecoverable withholding tax. Interest income is
recorded on an accrual basis. Discounts and premiums on fixed income securities
are accreted and amortized using the effective interest method. Foreign dividend
and interest income amounts and realized capital gains or losses are converted
to U.S. dollar equivalents using foreign exchange rates in effect at the date of
the transactions. Distributions received on securities that represent a return
of capital or capital gain are recorded as a reduction of costs of investments
and/or as a realized gain. The Funds estimate the components of distributions
received that may be considered non-taxable distributions or capital gain
distributions.
EXPENSES: Expenses are recorded on an accrual basis. 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 OF SHARES: Income, realized and unrealized gains and losses of a Fund
are prorated to the respective classes of shares based on relative net assets.
107
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends and distributions to
shareholders from net investment income and from net realized capital gains, if
any, are declared and distributed at least annually for the Schroder
International Alpha Fund, Schroder International Diversified Value Fund,
Schroder Emerging Market Equity Fund, Schroder U.S. Opportunities Fund, Schroder
U.S. Small and Mid Cap Opportunities Fund, Schroder North American Equity Fund
and Schroder Multi-Asset Growth Portfolio. 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 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 or unwilling to perform its
obligations, or that the fund 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
108
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
investments, instruments or indices including a particular interest rate,
foreign currency, or "basket" of securities representing a particular index. The
Schroder Total Return Fixed Income Fund, Schroder Strategic Bond Fund and
Schroder Multi-Asset Growth Portfolio may enter into "credit default" swap
transactions. In a credit default swap, one party pays what is, in effect, an
insurance premium through a 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' Statements 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 or other rates or values. Risks also arise from potential losses
from adverse market movements.
EQUITY-LINKED AND INDEX-LINKED WARRANTS: The Schroder International Alpha,
Schroder International Diversified Value and Schroder Emerging Market Funds may
invest in equity-linked and index-linked warrants. A 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 counterparty risk with respect to
the issuing broker. Moreover, there is currently no active trading market for
either equity-linked or index-linked warrants. A Fund may also purchase
warrants, issued by banks and other financial institutions, whose values are
based on the values from time to time of one or more securities indices.
RESTRICTED SECURITIES: As of April 30, 2008, 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, as amended, 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, 2008, were as follows:
PRINCIPAL ACQUISITION % OF NET
AMOUNT DATE COST MARKET VALUE ASSETS
--------- ----------- ------- ------------ --------
SCHRODER TOTAL RETURN FIXED INCOME FUND
Hedged Mutual Fund Fee Trust
4.840%, 3/02/11 $68,247 1/7/05 $67,960 $66,200 0.1%
109
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
PRINCIPAL ACQUISITION % OF NET
AMOUNT DATE COST MARKET VALUE ASSETS
---------- ----------- ---------- ------------ --------
SCHRODER MUNICIPAL BOND FUND
IIS/Syska Holdings Energy
3.900%, 8/15/08 $ 102,081 3/4/04 $ 101,832 $ 101,650 0.0%
Kidspeace National Centers of
Georgia, USDA
6.300%, 12/01/28 250,000 1/5/04 250,000 269,145 0.0
Landmark Leasing
6.200%, 10/01/22 761,541 12/9/04 761,541 814,287 0.1
State Economic Development RB, Health
Gains Bakery
5.840%, 12/01/25 2,335,000 7/31/06 2,258,529 2,435,732 0.4
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
Bucks County, Industrial Development
Authority RB
4.600%, 3/15/17 1,775,000 4/9/07 1,775,000 1,690,244 1.0
IIS/Syska Holdings Energy
3.900%, 8/15/08 239,381 3/4/04 238,797 238,369 0.1
Kidspeace National Centers of
Georgia, USDA
6.300%, 12/01/28 250,000 1/5/04 250,000 269,145 0.2
SCHRODER STRATEGIC BOND FUND
Master Asset-Backed Securities NIM
Trust
7.250%, 8/25/36 56,261 11/23/06 56,225 141 0.0
Sharps SP I LLC NIM Trust
6.400%, 6/25/36 47,865 10/15/06 47,613 517 0.0
MORTGAGE DOLLAR ROLLS: The Schroder Total Return Fixed Income and Schroder
Strategic Bond 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 purchase 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: During the period ended April 30, 2008, the Schroder Multi-Asset
Growth Portfolio commenced operations and incurred offering costs of $211,531.
Schroder Investment Management North America, Inc. ("SIMNA") absorbed $157,185
of the offering costs for Schroder Multi-Asset Growth Portfolio. The amortized
portion of the offering costs and the amount absorbed by SIMNA are included in
amortization of deferred offering costs and reimbursement from Investment
Adviser on the Statements of Operations. The remaining offering costs are being
amortized over a twelve-month period from Schroder Multi-Asset Growth
Portfolio's inception date and are reflected as deferred offering costs in the
Statements Assets and Liabilities.
NOTE 3 -- INVESTMENT ADVISORY FEES, ADMINISTRATION AGREEMENTS AND DISTRIBUTIONS
PLANS
The Funds have entered into investment advisory agreements with Schroder
Investment Management North America, Inc. ("SIMNA"). Under these agreements,
SIMNA provides investment management services and is entitled to receive for its
services compensation, payable monthly, at the following annual rates based on
average daily net assets of each Fund taken separately: 0.975% for the Schroder
International Alpha Fund; 1.00% for each of Schroder International Diversified
Value Fund, Schroder Emerging Market Equity Fund, Schroder U.S. Opportunities
Fund and Schroder U.S. Small and Mid Cap Opportunities Fund; 0.25% for each of
the Schroder North American Equity Fund and Schroder Total Return Fixed Income
Fund; 0.40% for each
110
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
of Schroder Municipal Bond Fund and Schroder Short-Term Municipal Bond Fund;
0.75% for the Schroder Strategic Bond Fund (waived from March 1, 2008 to March
7, 2009 to 0.55%) and Schroder Multi-Asset Growth Portfolio (waived until
February 28, 2009 to 0.60%).
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 International Alpha Fund, the Schroder International
Diversified Value Fund, the Schroder Emerging Market Equity Fund, the Schroder
Strategic Bond Fund and the Schroder Multi-Asset Growth Portfolio. 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 International Alpha Fund and the Schroder U.S.
Opportunities Fund. SIMNA's compensation for its services as administrator is
included in the Schroder International Alpha and the Schroder U.S. Opportunities
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) until February 28, 2009 (and until March
7, 2009, with respect to the Strategic Bond Fund) to the extent that the total
annual fund operating expenses of a Fund (other than acquired fund fees and
expenses, interest, taxes, and extraordinary expenses) 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
Alpha Fund, 1.25%, Schroder International Diversified Value Fund, 1.25%,
Schroder Emerging Market Equity Fund, 1.75%, Schroder U.S. Opportunities Fund
(effective May 1, 2006), 1.70%, Schroder U.S. Small and Mid Cap Opportunities
Fund, 1.40%, Schroder Total Return Fixed Income Fund, 0.40%, Schroder Municipal
Bond Fund, 0.55%, Schroder Short-Term Municipal Bond Fund, 0.55%, Schroder
Strategic Bond Fund, 0.74% (effective March 1, 2008) and Schroder Multi-Asset
Growth Portfolio, 1.25%. 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) until February 28,
2009 (and until March 7, 2009, with respect to the Strategic Bond Fund) to the
extent that the total annual fund operating expenses of a Fund (other than
acquired fund fees and expenses, interest, taxes, and extraordinary expenses)
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 Alpha Fund, 1.50%, Schroder International Diversified
Value Fund, 1.50%, Schroder Emerging Market Equity Fund, 2.00%, Schroder U.S.
Opportunities Fund, 1.95%, Schroder U.S. Small and Mid Cap Opportunities Fund,
1.65%, Schroder Total Return Fixed Income Fund, 0.65%, Schroder Municipal Bond
Fund, 0.80%, and Schroder Short-Term Municipal Bond Fund, 0.80%, Schroder
Strategic Bond Fund, 0.99% (effective March 1, 2008) and Schroder Multi-Asset
Growth Portfolio, 1.50%. In addition, in order to limit the expenses of the A
Shares and R Shares of the Schroder Multi-Asset Growth Portfolio, the adviser
has contractually agreed to reduce its compensation (and, if necessary, to pay
other Fund expenses) until February 28, 2009 to the extent that the total annual
fund operating expenses of the Schroder Multi-Asset Growth Portfolio (other than
acquired fund fees and expenses, interest, taxes, and extraordinary expenses)
allocable to the A Shares and the R Shares exceed the following annual rates
(based on average daily net assets attributable to the Schroder Multi-Asset
Growth Portfolio's A Shares and R Shares), A Shares, 1.50%, R Shares, 1.75%.
The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act that allows each Fund to pay distribution and
other fees with respect to its A Shares, Advisor Shares and R Shares. Under the
Plan, a Fund may make payments at the following annual rates: A Shares and
Advisor Shares: 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%; R Shares: up to 0.50%,
of the daily net assets attributable to the A Shares, Advisor Shares and R
Shares, as applicable, to compensate Schroder Advisors for distribution services
and certain shareholder services with respect to the Funds' A Shares, Advisor
Shares and R Shares.
111
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
NOTE 4 -- REDEMPTION FEE
The Schroder International Alpha Fund, Schroder International Diversified Value
Fund, Schroder Emerging Market Equity Fund, Schroder U.S. Opportunities Fund,
Schroder U.S. Small and Mid Cap Opportunities Fund, Schroder Strategic Bond Fund
and Schroder Multi-Asset Growth Portfolio generally 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 Alpha Fund, Schroder International Diversified Value Fund,
Schroder Emerging Market Equity Fund, Schroder U.S. Opportunities Fund, Schroder
U.S. Small and Mid Cap Opportunities Fund, Schroder Strategic Bond Fund and
Schroder Multi-Asset Growth Portfolio for the six months ended April 30, 2008
totaled $8,397, $0, $92, $2,995, $2,000, $0 and $0, respectively.
NOTE 5 -- TRANSACTIONS WITH AFFILIATES
TRUSTEES' FEES: The Funds pay no compensation to Trustees who are interested
persons of the Trusts, SIMNA or Schroder Advisors. For their services as
Trustees of all open-end investment companies distributed by Schroder Advisors
for the six months ended April 30, 2008, 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, with the Audit Committee chair receiving a $5,000
retainer. 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 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.
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, 2008
(except for Schroder Multi-Asset Growth Portfolio, for which data is presented
for the period December 20, 2007 (commencement of investment operations) until
April 30, 2008) were as follows:
PURCHASES SALES AND MATURITIES
------------ --------------------
Schroder International Alpha Fund ............................ $ 24,198,733 $ 23,067,679
Schroder International Diversified Value Fund ................ 3,633,715 3,330,448
Schroder Emerging Market Equity Fund ......................... 21,244,999 17,295,391
Schroder U.S. Opportunities Fund ............................. 81,669,777 99,270,125
Schroder U.S. Small and Mid Cap Opportunities Fund ........... 8,021,155 5,479,914
Schroder North American Equity Fund .......................... 460,857,674 499,644,290
Schroder Total Return Fixed Income Fund ...................... 13,716,080 19,418,631
Schroder Municipal Bond Fund ................................. 49,781,683 49,897,444
Schroder Short-Term Municipal Bond Fund ...................... 21,220,254 54,758,576
Schroder Strategic Bond Fund ................................. 16,419,686 9,382,312
Schroder Multi-Asset Growth Portfolio ........................ 43,409,276 19,088,637
Purchases and proceeds from sales and maturities of U.S. Government securities
for the six months ended April 30, 2008 were as follows:
PURCHASES SALES AND MATURITIES
------------ --------------------
Schroder Total Return Fixed Income Fund ...................... $119,848,870 $116,698,922
Schroder Strategic Bond Fund ................................. 45,627,680 49,018,005
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 years ended
October 31, 2007 and October 31, 2006 the Schroder North American Equity Fund
realized gains from in-kind redemptions of $60,232,563 and $29,225,391,
respectively.
112
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
Investments made by the Schroder Multi-Asset Growth Portfolio in other Schroder
Funds are considered to be investments in Affiliated Companies as defined under
section 2(a)(3) of the 1940 Act. A summary of the investment and income activity
in each Affiliated Company's Shares for Schroder Multi-Asset Growth Portfolio is
as follows:
INCOME
REALIZED FROM
AFFILIATED REGISTERED GAINS AFFILIATED
INVESTMENT COMPANY CONTRIBUTIONS WITHDRAWALS (LOSSES) INVESTMENTS
- ------------------------------------------------------------- ------------- ----------- -------- -----------
Schroder U.S. Small and Mid Cap Opportunities Fund .......... $3,576,000 $ 100,000 $(4,580) $ --
Schroder Emerging Market Equity Fund ........................ 894,000 -- -- --
Schroder InternationalAlpha Fund ............................ 894,000 -- -- --
Schroder Intentional Diversified Value Fund ................. 894,000 -- -- --
Schroder Strategic Bond Fund ................................ 2,007,820 1,000,000 4,796 7,820
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, 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.
The tax character of dividends and distributions declared during the years or
periods ended October 31, 2007 and October 31, 2006 was as follows:
ORDINARY TAX-EXEMPT LONG-TERM
INCOME INCOME CAPITAL GAIN TOTAL
----------- ---------- ------------ ------------
Schroder International Alpha Fund
2007 ..................................................... $ 461,687 $-- $ -- $ 461,687
2006 ..................................................... 128,898 -- -- 128,898
Schroder International Diversified Value Fund
2007 ..................................................... 172,530 -- -- 172,530
Schroder Emerging Market Equity Fund
2007 ..................................................... 63,167 -- -- 63,167
Schroder U.S. Opportunities Fund
2007 ..................................................... 7,344,179 -- 13,699,207 21,043,386
2006 ..................................................... -- -- 5,427,542 5,427,542
Schroder U.S. Small and Mid Cap Opportunities Fund
2007 ..................................................... 3,936 -- -- 3,936
Schroder North American Equity Fund
2007 ..................................................... 42,947,662 -- 33,761,191 76,708,853
2006 ..................................................... 20,622,879 -- 12,682,712 33,305,591
Schroder Total Return Fixed Income Fund
2007 ..................................................... 1,986,596 -- -- 1,986,596
2006 ..................................................... 1,032,110 -- -- 1,032,110
113
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
ORDINARY TAX-EXEMPT LONG-TERM
INCOME INCOME CAPITAL GAIN TOTAL
----------- ---------- ------------ ------------
Schroder Municipal Bond Fund
2007 ..................................................... $1,819,534 $15,664,276 $-- $17,483,810
2006 ..................................................... 877,054 5,918,223 -- 6,795,277
Schroder Short-Term Municipal Bond Fund
2007 ..................................................... 824,747 7,276,943 -- 8,101,690
2006 ..................................................... 937,871 4,695,148 -- 5,633,019
Schroder Strategic Bond Fund
2007 ..................................................... 1,365,099 -- -- 1,365,099
2006* .................................................... 153,790 -- -- 153,790
* Fund commenced investment activities on June 30, 2006.
As of October 31, 2007, 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 International
Alpha Fund ................. $ 958,594 $ -- $ -- $(3,532,551) $ 6,910,114 $ -- $ 4,336,157
Schroder International
Diversified Value Fund ..... 1,776,785 -- 347,610 -- 1,613,821 (34,679) 3,703,537
Schroder Emerging Market
Equity Fund ................ 2,275,244 -- 1,230,054 -- 8,712,143 (19,033) 12,198,408
Schroder U.S. Opportunities
Fund ....................... 5,038,645 -- 22,629,488 -- 50,028,813 -- 77,696,946
Schroder U.S. Small and Mid Cap
Opportunities Fund ......... 311,837 -- 386,237 -- 1,624,738 (15,555) 2,307,257
Schroder North American
Equity Fund ................ 25,590,182 -- 77,583,253 -- 113,287,297 (17,909) 216,442,823
Schroder Total Return
Fixed Income Fund .......... 356,622 -- 35,076 -- 130,821 (370,971) 151,548
Schroder Municipal Bond Fund .. 277,970 2,068,419 -- (275,052) (4,791,917) (2,311,860) (5,032,440)
Schroder Short-Term
Municipal Bond Fund ........ 113,954 735,051 -- (586,332) (1,347,161) (826,803) (1,911,291)
Schroder Strategic Bond Fund .. 147,966 -- -- (162,490) 110,152 (143,131) (47,503)
As of October 31, 2007, the Funds listed below had net tax basis capital loss
carryforwards, for Federal income tax purposes, that may be applied against
future taxable gains until their expiration date as follows:
EXPIRATION
DATES
AMOUNT OCTOBER 31,
---------- -----------
Schroder International Alpha Fund ........... $2,618,789 2010
913,762 2011
Schroder Municipal Bond Fund ................ 152,837 2012
99,808 2013
22,407 2015
Schroder Short-Term Municipal Bond Fund ..... 96,239 2012
234,915 2013
143,997 2014
111,181 2015
Schroder Strategic Bond Fund ................ 142,853 2014
19,637 2015
114
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
During the year ended October 31, 2007, capital loss carryforwards that were
utilized to offset gains were as follows:
AMOUNT
----------
Schroder International Alpha Fund ................................. $7,820,234
Schroder Emerging Market Equity Fund .............................. 159,885
Schroder U.S. Small and Mid Cap Opportunities Fund ................ 49,147
Schroder Total Return Fixed Income Fund ........................... 162,689
At April 30, 2008, 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 International Alpha Fund ................... $ 51,427,717 $ 4,327,252 $ (3,482,948) $ 844,304
Schroder International Diversified Value Fund ....... 13,248,704 1,155,198 (1,512,147) (356,949)
Schroder Emerging Market Equity Fund ................ 27,841,030 4,516,332 (767,603) 3,748,729
Schroder U.S. Opportunities Fund .................... 238,588,366 33,886,304 (17,631,315) 16,254,989
Schroder U.S. Small and Mid Cap Opportunities Fund .. 12,886,982 1,059,661 (514,552) 545,109
Schroder North American Equity Fund ................. 669,781,588 73,631,653 (51,002,661) 22,628,992
Schroder Total Return Fixed Income Fund ............. 80,589,663 720,829 (555,619) 165,210
Schroder Municipal Bond Fund ........................ 684,497,901 5,808,885 (40,860,756) (35,051,871)
Schroder Short-Term Municipal Bond Fund ............. 185,088,213 1,432,726 (9,879,866) (8,447,140)
Schroder Strategic Bond Fund ........................ 34,798,933 1,025,729 (345,638) 680,091
Schroder Multi-Asset Growth Portfolio ............... 29,391,973 580,676 (219,268) 361,408
NOTE 8 -- PORTFOLIO INVESTMENT RISKS
Schroder International Alpha, Schroder International Diversified Value 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 Alpha, Schroder International Diversified Value,
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.
Each of Schroder Total Return Fixed Income and Schroder Strategic Bond Funds
invests a portion of their assets in securities of issuers that hold mortgage
securities, including subprime mortgage securities. The value of these
securities is sensitive to changes in economic conditions, including
delinquencies and/or defaults, and may be adversely affected by shifts in the
market's perception of the issuers and changes in interest rates.
Each of the Schroder Municipal Bond Fund and Schroder Short-Term Municipal Bond
Fund (together the "Municipal Bond Funds") invests a portion of its assets in
bonds that are insured by private insurers. The credit standing of such a bond
and/or its price will likely be affected by the credit standing of its insurer
and its ability to meet its obligations. Furthermore, the Municipal Bond Funds
may at times be invested in an issue of which the Funds by themselves or
together with other funds and accounts managed by the Funds' adviser or its
affiliates, holds all or a major portion. It is possible that, under adverse
market or economic conditions or in the event of adverse changes in the
financial condition of the issuer or its insurer, a Fund could find it more
difficult to sell these securities when the Funds' adviser believes it advisable
to do so or may be able to sell the securities only at prices lower than if they
were more widely held. Under these circumstances, it may also be more difficult
to determine the fair value of such securities for purposes of computing a
Fund's net asset value.
115
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (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, 2008 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 International Alpha Fund ................... 1 86.20
Schroder International Diversified Value Fund ....... 2 97.85
Schroder Emerging Market Equity Fund ................ 3 90.31
Schroder U.S. Opportunities Fund .................... 3 74.22
Schroder U.S. Small and Mid Cap Opportunities Fund .. 4 98.27
Schroder North American Equity Fund ................. 6 76.78
Schroder Total Return Fixed Income Fund ............. 2 94.28
Schroder Municipal Bond Fund ........................ 4 94.95
Schroder Short-Term Municipal Bond Fund ............. 3 89.75
Schroder Strategic Bond Fund ........................ 2 96.99
Schroder Multi-Asset Growth Portfolio ............... 1 100.00
Some of the accounts shown above for Schroder International Alpha Fund, Schroder
International Diversified Value Fund, Schroder Emerging Market Equity Fund,
Schroder U.S. Small and Mid Cap Opportunities Fund, Schroder Strategic Bond Fund
and Schroder Multi-Asset Growth Portfolio are owned by an affiliate of SIMNA.
NOTE 10 -- CAPITAL SHARE TRANSACTIONS
Capital share transactions for the Funds were as follows:
INTERNATIONAL INTERNATIONAL DIVERSIFIED EMERGING MARKET
ALPHA FUND VALUE FUND EQUITY FUND
------------------------ ------------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007 2008 2007
---------- ----------- ----------- ----------- ---------- -----------
INVESTOR SHARES:
Sales of shares ................. 94,792 1,029,716 114,322 26,303 367,854 348,015
Reinvestment of distributions ... 40,026 25,941 184,373 14,253 230,257 5,239
Redemption of shares ............ (74,773) (1,093,754) (60,120) (26,303) (86,642) (12,788)
-------- ---------- ------- ------- -------- -------
Net increase (decrease) in
Investor Shares .............. 60,045 (38,097) 238,575 14,253 511,469 340,466
======== ========== ======= ======= ======== =======
ADVISOR SHARES:
Sales of shares ................. 206,089 1,446,287 45,647 34,528 252,241 50,217
Reinvestment of distributions ... 36,416 16,085 24,459 1,531 18,455 283
Redemption of shares ............ (107,037) (1,370,058) (56,637) (14,226) (197,733) (5,280)
-------- ---------- ------- ------- -------- -------
Net increase in Advisor Shares .. 135,468 92,314 13,469 21,833 72,963 45,220
======== ========== ======= ======= ======== =======
116
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
U.S. OPPORTUNITIES U.S. SMALL AND MID NORTH AMERICAN
FUND CAP OPPORTUNITIES FUND EQUITY FUND
------------------------ ------------------------ ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007 2008 2007
---------- ----------- ---------- ----------- ---------- -----------
INVESTOR SHARES:
Sales of shares ................. 387,359 2,945,901 389,571 195,225 262,179 10,660,078
Reinvestment of distributions ... 1,238,727 925,653 55,239 364 8,423,400 1,506,831
Redemption of shares ............ (1,595,105) (1,987,960) (62,624) (62,338) (2,915,985) (29,037,394)
Redemption of shares in-kind .... -- -- -- -- -- (23,138,873)
---------- ---------- ------- ------- ---------- -----------
Net increase (decrease) in
Investor Shares .............. 30,981 1,883,594 382,186 133,251 5,769,594 (40,009,358)
========== ========== ======= ======= ========== ===========
ADVISOR SHARES:
Sales of shares ................. 24,511 263,597 3,700 81,615 1,421 782
Reinvestment of distributions ... 24,017 2,754 7,745 -- 1,565 613
Redemption of shares ............ (52,767) (61,888) (86,376) (18,233) -- --
---------- ---------- ------- ------- ---------- -----------
Net increase (decrease) in
Advisor Shares ............... (4,239) 204,463 (74,931) 63,382 2,986 1,395
========== ========== ======= ======= ========== ===========
TOTAL RETURN FIXED MUNICIPAL SHORT-TERM MUNICIPAL
INCOME FUND BOND FUND BOND FUND
------------------------ ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2008 2007 2008 2007 2008 2007
---------- ----------- ----------- ----------- ----------- -----------
INVESTOR SHARES:
Sales of shares 99,190 1,279,192 14,794,599 47,697,954 4,804,882 9,909,536
Sales sold in-kind -- 4,787,713 -- -- -- --
Reinvestment of distributions 159,869 198,870 1,330,194 1,609,812 364,525 617,541
Redemption of shares (69,070) (1,207,763) (14,065,771) (7,577,096) (10,667,663) (5,673,919)
------- ---------- ----------- ---------- ----------- ----------
Net increase (decrease) in
Investor Shares 189,989 5,058,012 2,059,822 41,730,670 (5,498,256) 4,853,158
======= ========== =========== ========== =========== ==========
ADVISOR SHARES:
Sales of shares 7,070 70,155 265,202 863,739 125,581 916,457
Reinvestment of distributions 1,824 3,931 34,250 61,293 13,467 22,552
Redemption of shares (60) (95,000) (395,034) (562,763) (586,668) (207,470)
------- ---------- ----------- ---------- ----------- ----------
Net increase (decrease) in
Advisor Shares 8,834 (20,914) (95,582) 362,269 (447,620) 731,539
======= ========== =========== ========== =========== ==========
117
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
MULTI-ASSET
GROWTH
STRATEGIC BOND FUND PORTFOLIO
----------------------- -----------
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
APRIL 30, OCTOBER 31, APRIL 30,
2008 2007 2008
--------- ----------- -----------
INVESTOR SHARES:
Sales of shares 195,504 1,464,142 50,000
Reinvestment of distributions 28,508 84,253 --
Redemption of shares (122,063) (276,058) --
-------- --------- ---------
Net increase in Investor Shares 101,949 1,272,337 50,000
======== ========= =========
A SHARES:
Sales of shares -- -- 2,500,000
-------- --------- ---------
Net increase in A Shares -- -- 2,500,000
======== ========= =========
ADVISOR SHARES:
Sales of shares 2,231 308,834 380,000
Reinvestment of distributions 2,514 11,166 --
Redemption of shares (109,110) (191,878) --
-------- --------- ---------
Net increase (decrease) in
Advisor Shares (104,365) 128,122 380,000
======== ========= =========
R SHARES:
Sales of shares -- -- 50,000
-------- --------- ---------
Net increase in R Shares -- -- 50,000
======== ========= =========
NOTE 11 -- RECENT 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. Based on its
analysis, management has determined that the adoption of FIN 48 did not have a
material impact to the Fund's financial statements upon adoption. However,
management's conclusions regarding FIN 48 may be subject to review and
adjustment at a later date based on factors including, but not limited to,
further implementation guidance expected from the FASB, and on-going analyses of
and changes to tax laws, regulations and interpretations thereof.
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, 2008, 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.
In March 2008, the FASB issued SFAS No. 161, DISCLOSURES ABOUT DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES. SFAS No. 161 is
118
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
APRIL 30, 2008 (UNAUDITED)
effective for fiscal years and interim periods beginning after November 15,
2008. SFAS No. 161 requires enhanced disclosures about the Funds' derivative and
hedging activities, including how such activities are accounted for and their
effect on the Funds' financial position, performance, and cash flows. Management
is currently evaluating the impact the adoption of SFAS No. 161 will have on the
Funds' financial statements and related disclosures.
119
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 website at
http://www.sec.gov, or by calling 1-800-464-3108 and requesting a copy of the
applicable Fund's Statement of Additional Information 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.
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.
120
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, A and R 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
11/1/07 4/30/08 Ratios Period*
--------- --------- ---------- --------
SCHRODER INTERNATIONAL ALPHA FUND
Actual Expenses
Investor Shares $1,000.00 $ 892.80 1.25% $5.88
Advisor Shares 1,000.00 891.50 1.50 7.05
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.65 1.25% $6.27
Advisor Shares 1,000.00 1,017.40 1.50 7.52
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
Actual Expenses
Investor Shares $1,000.00 $ 889.10 1.25% $5.87
Advisor Shares 1,000.00 887.50 1.50 7.04
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.65 1.25% $6.27
Advisor Shares 1,000.00 1,017.40 1.50 7.52
121
SCHRODER MUTUAL FUNDS
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/1/07 4/30/08 Ratios Period*
--------- --------- ---------- --------
SCHRODER EMERGING MARKET EQUITY FUND
Actual Expenses
Investor Shares $1,000.00 $ 887.50 1.75% $ 8.21
Advisor Shares 1,000.00 887.30 2.00 9.38
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,016.16 1.75% $ 8.77
Advisor Shares 1,000.00 1,014.92 2.00 10.02
SCHRODER U.S. OPPORTUNITIES FUND
Actual Expenses
Investor Shares $1,000.00 $ 921.50 1.22% $ 5.83
Advisor Shares 1,000.00 920.40 1.47 7.02
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.80 1.22% $ 6.12
Advisor Shares 1,000.00 1,017.55 1.47 7.37
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Actual Expenses
Investor Shares $1,000.00 $ 929.40 1.40% $ 6.72
Advisor Shares 1,000.00 927.60 1.65 7.91
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,017.90 1.40% $ 7.02
Advisor Shares 1,000.00 1,016.66 1.65 8.27
SCHRODER NORTH AMERICAN EQUITY FUND
Actual Expenses
Investor Shares $1,000.00 $ 907.40 0.34% $ 1.61
Advisor Shares 1,000.00 906.30 0.69 3.27
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,023.17 0.34% $ 1.71
Advisor Shares 1,000.00 1,021.43 0.69 3.47
SCHRODER TOTAL RETURN FIXED INCOME FUND
Actual Expenses
Investor Shares $1,000.00 $1,040.80 0.40% $ 2.03
Advisor Shares 1,000.00 1,040.50 0.65 3.30
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.87 0.40% $ 2.01
Advisor Shares 1,000.00 1,021.63 0.65 3.27
122
SCHRODER MUTUAL FUNDS
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/1/07 4/30/08 Ratios Period*
--------- --------- ---------- --------
SCHRODER MUNICIPAL BOND FUND
Actual Expenses
Investor Shares $1,000.00 $ 975.80 0.55% $2.70
Advisor Shares 1,000.00 974.60 0.80 3.93
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.13 0.55% $2.77
Advisor Shares 1,000.00 1,020.89 0.80 4.02
SCHRODER SHORT-TERM MUNICIPAL BOND FUND
Actual Expenses
Investor Shares $1,000.00 $ 985.00 0.55% $2.71
Advisor Shares 1,000.00 982.70 0.80 3.94
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.13 0.55% $2.77
Advisor Shares 1,000.00 1,020.89 0.80 4.02
SCHRODER STRATEGIC BOND FUND
Actual Expenses
Investor Shares $1,000.00 $1,019.00 1.03% $5.17
Advisor Shares 1,000.00 1,018.70 1.31 6.58
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,019.74 1.03% $5.17
Advisor Shares 1,000.00 1,018.35 1.31 6.57
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
Actual Expenses
Investor Shares** $1,000.00 $1,009.00 1.25% $4.53
A Shares** 1,000.00 1,008.00 1.50 5.43
Advisor Shares** 1,000.00 1,008.00 1.50 5.43
R Shares** 1,000.00 1,008.00 1.75 6.34
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.65 1.25% $6.27
A Shares 1,000.00 1,017.40 1.50 7.52
Advisor Shares 1,000.00 1,017.40 1.50 7.52
R Shares 1,000.00 1,016.16 1.75 8.77
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the account period, multiplied by 182/366 (to
reflect the one-half year period).
** Fund commenced operations on December 20, 2007. Expenses are equal to the
Fund's annualized expense ratio multiplied by the average account value
over the account period, multiplied by 132/366.
123
SCHRODER MUTUAL FUNDS
NOTICE TO SHAREHOLDERS (UNAUDITED)
For shareholders that do not have an October 31, 2007 tax year end, this notice
is for informational purposes only. For shareholders with an October 31, 2007
tax year end, please consult your tax advisor as to the pertinence of this
notice. For the fiscal year ended October 31, 2007, each Fund has designated the
following items with regard to distributions paid during the year.
ORDINARY U.S. QUALIFYING
INCOME TOTAL GOVERNMENT INTEREST
FUND DISTRIBUTIONS DISTRIBUTIONS INTEREST (1) INCOME (2)
- ---- ------------- ------------- ------------ ----------
Schroder Total Return
Fixed Income Fund ..... 100.00% 100.00% 2.81% 100.00%
(1) "U.S. Government Interest" represents the amount of interest that was
derived from direct U.S. Government Obligations and distributed during the
fiscal year. This amount is reflected as a percentage of total ordinary
income distributions (the total of short-term capital gain and net
investment income distributions). Generally, interest from direct U.S.
Government Obligations is exempt from state income tax.
(2) The percentage in this column represents the amount of "Qualifying Interest
Income" as created by the American Jobs Creation Act of 2004 and is
reflected as a percentage of net investment income distributions that are
exempt from U.S. withholding tax when paid by foreign investors.
124
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:
- - Applications or forms completed by you; and
- - 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:
- - 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.
- - 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.
- - 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 Schroder Mutual Funds.
If you identify any inaccuracy in your personal information or you need to make
a change to that information, please contact us in writing so that we may
promptly update our records.
This Privacy Policy applies to the Schroder Mutual Funds, Schroder Fund Advisors
Inc. and Schroder Investment Management North America Inc.
(SCHRODERS LOGO)
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*
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
50416
(SCHRODERS LOGO)
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, 2008 through April 30,
2008 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 Series Trust
By (Signature and Title)* /s/ Mark A. Hemenetz
-------------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date June 30, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Mark A. Hemenetz
-------------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date June 30, 2008
By (Signature and Title)* /s/ Alan M. Mandel
-------------------------------------
Alan M. Mandel,
Treasurer and Chief Financial Officer
Date June 30, 2008
* Print the name and title of each signing officer under his or her signature.