UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-21364
SCHRODER GLOBAL SERIES TRUST
(Exact name of registrant as specified in charter)
---------
875 Third Avenue, 22nd Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
Schroder Global Series Trust
P.O. Box 8507
Boston, MA 02266
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-464-3108
DATE OF FISCAL YEAR END: APRIL 30, 2005
DATE OF REPORTING PERIOD: OCTOBER 31, 2004
ITEM 1.Reports to Shareholders.
SCHRODER NORTH AMERICAN
EQUITY FUND
Semi-Annual Report
October 31, 2004
(Unaudited)
INVESTMENT ADVISOR
Schroder Investment Management
North America Inc.
875 Third Avenue, 22nd Floor
New York, NY 10022
TRUSTEES
John I. Howell
Peter S. Knight
Catherine A. Mazza (Chairman)
Clarence F. Michalis
James D. Vaughn
DISTRIBUTOR
Schroder Fund Advisors Inc.
875 Third Avenue, 22nd Floor
New York, NY 10022
TRANSFER & SHAREHOLDER SERVICING AGENT
Boston Financial Data Services, Inc.
800-464-3108
617-483-5000
CUSTODIAN
JPMorgan Chase Bank
COUNSEL
Ropes & Gray LLP
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
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.
[SCHRODERS LOGO] [SCHRODERS LOGO]
SCHRODER NORTH AMERICAN EQUITY FUND
December 10, 2004
Dear Shareholder:
We are pleased to provide the Semi-Annual Report to shareholders of the Schroder
North American Equity Fund (the "Fund") that covers the six-month period ended
October 31, 2004. This report includes comments from the portfolio managers, a
schedule of investments and other relevant information regarding the Fund. We
encourage you to read the report and we thank you for making Schroders part of
your investment program.
The six-month period under review provided investors with positive financial
returns but was accompanied by volatility of returns, which continues to
underscore the importance of asset allocation. There was an ebb and flow of
sentiment about the outlook for corporate earnings, monetary policy and oil
prices, among other factors. Concerns over the direction of the war in Iraq and
terrorist activity, also factored in to market concerns.
Although inflation remains low from a historical perspective, many central
banks, including the U.S. Federal Reserve, want to be vigilant and keep it from
becoming a concern. With interest rates still at some of their lowest levels in
45 years and the economy growing again, the Fed is expected to continue to
reduce the level of monetary accommodation in a measured way. We have seen short
term interest rates inching higher since March and we believe they are likely to
continue to do so.
While the factors described above impacted stocks globally, international stocks
were able to produce far stronger returns for U.S. investors. This was largely
due to the weakening of the U.S. dollar as the U.S. struggles with sizeable
budget and current account deficits. As the U.S. dollar is not expected to gain
significant ground anytime soon, dollar returns from non-U.S. stocks are likely
to continue to benefit.
The complexity and variety of factors that play a role in domestic and
international equity and fixed income markets reinforces the need to develop and
maintain a diversified portfolio that incorporates both your individual
financial goals and your overall investment horizon.
We thank you for making Schroders part of your investment goals and for your
continued confidence.
Sincerely,
/s/ Mark A. Hemenetz
------------------------
Mark A. Hemenetz
President
The views expressed in the following report were those of the Fund's portfolio
managers as of the date specified, and may not reflect the views of the
portfolio manager on the date this semi-annual report is first published or any
time thereafter. These views are intended to assist shareholders of the Funds in
understanding their investment in the Funds and do not constitute investment
advice; investors should consult their own investment professionals as to their
individual investment programs. Certain securities described in the Management
Discussion and Analysis may no longer be held by the Funds and therefore no
longer appear in the Schedules of Investments as of October 31, 2004.
SCHRODER NORTH AMERICAN EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (As of November 12, 2004)
PERFORMANCE
The Schroder North American Equity Fund had a total return of 3.58% for the
six-month period ended October 31, 2004. This compares to the benchmark FTSE
North America Index return of 3.77% for the same period. The S&P 500 Index
returned 2.96% for the same six-month period.
While the Fund's fundamental value position contributed to performance during
the semi-annual period, its positioning in more defensive value stocks,
primarily in the utilities and materials sectors, contributed to its
underperformance versus the Index. Foreign exposure and high sales growth stocks
performed relatively well; the Fund tended to underweight these strategies as
they typically underperform in the longer-term, and this position was
detrimental during the six-month period.
MARKET BACKGROUND
During the period under review, the U.S. Federal Reserve raised interest rates
and leading economic indicators suggested that the rate of economic growth had
reached a peak. As a result, markets adjusted to the prospect of slower growth
in 2005.
As oil prices rose to record levels, there was a slowdown in U.S. activity that
caused investors to question the underlying resilience of the U.S. economy.
Companies also became more cautious as input costs started to rise and consumer
spending appeared to be weakening. However, towards the end of the six-month
period, investor sentiment began to improve on signs that the U.S. economy was
regaining strength and inflationary pressures remained moderate. This
underpinned stronger performance and North American equity markets produced
modest gains overall.
During the period, oil and gas companies continued to benefit from high prices
and concerns about global supply. Mining and steel companies were also among the
best performers as fears of a rapid slowdown in the Chinese economy eased. The
poorest performers included insurance and pharmaceutical companies. The former
fell as investigations began into industry practices while the latter struggled
amid fears of increased political scrutiny.
PORTFOLIO REVIEW
The Fund typically holds stocks with a value and quality bias and typically
avoids those that are high profile, and we believe often overpriced. During the
period, this strategy allowed us to sell holdings in the media and
pharmaceuticals sectors as well as banks, metals and mining companies that
became expensive relative to their history. Additions, including insurance and
healthcare providers and other service-related industries, were made as they
offered good value. Overall, the Fund's exposure to companies management deemed
as quality, particularly those based on profitability, increased in the period.
Of the style strategies the Fund employs, value, particularly fundamental value,
and a strategy of selling short term outperformers and buying short term
underperformers, were the most successful. Relative value did
1
SCHRODER NORTH AMERICAN EQUITY FUND
not perform as well but provided a good opportunity to diversify risk. Within
quality strategies, financial strength was a poor performer, which is not
uncommon while growth is positive.
OUTLOOK
The relative strength of U.S. economic growth should provide some support for
equity markets. However, with the prospect of more difficult business conditions
in 2005 coinciding with an environment of rising costs and low pricing power, we
anticipate that further market gains could be limited.
PERFORMANCE INFORMATION
ANNUALIZED
SIX MONTHS ONE YEAR SINCE
ENDED ENDED INCEPTION*
10/31/04 10/31/04 TO 10/31/04
-------- -------- -----------
Schroder North American Equity Fund 3.58% 10.39% 11.95%
FTSE North American Index** 3.77 10.25 13.31
S&P 500 Index** 2.96 9.42 12.28
* The Fund commenced operations on September 17, 2003.
** The FTSE North American Index is a market capitalization value weighted
composite index of over 700 U.S. and Canadian companies and reflects the
reinvestment of dividends. The S&P 500 Index is a market capitalization
value weighted composite index of 500 large capitalization U.S. companies
and reflects the reinvestment of dividends.
"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.
2
SCHRODER NORTH AMERICAN EQUITY FUND
DISTRIBUTION OF EQUITY INVESTMENTS BY SECTOR
As a Percentage of Net Assets (Unaudited)
Pharmaceuticals 5.9%
Integrated Oil & Gas 4.9
Diversified Banks 4.6
Industrial Conglomerates 4.0
Systems Software 3.7
Other Diversified Financial Services 3.2
Integrated Telecommunication Services 2.8
Computer Hardware 2.7
Communications Equipment 2.6
Semiconductors 2.5
Electric Utilities 2.3
Thrifts & Mortgage Finance 2.1
Regional Banks 2.0
Property & Casualty Insurance 2.0
Household Products 1.9
Aerospace & Defense 1.9
Multi-line Insurance 1.7
Oil & Gas Exploration & Production 1.7
Asset Management & Custody Banks 1.7
Soft Drinks 1.6
Movies & Entertainment 1.4
Health Care Equipment 1.4
Packaged Foods & Meats 1.3
Hypermarkets & Super Centers 1.3
Consumer Finance 1.2
Data Processing & Outsourced Services 1.1
Home Improvement Retail 1.1
Investment Banking & Brokerage 1.1
Restaurants 1.0
Managed Health Care 1.0
Other 27.0
----
Total 94.7%
====
3
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------ ----------
COMMON STOCKS (94.7%)
BERMUDA (1.0%)
INDUSTRIAL CONGLOMERATES (0.5%)
126,935 Tyco International $3,954,025
----------
INDUSTRIAL MACHINERY (0.0%)
4,900 Ingersoll Rand Co. 335,356
----------
PROPERTY & CASUALTY INSURANCE (0.1%)
13,400 ACE 510,004
9,049 XL Capital 656,053
----------
1,166,057
----------
REINSURANCE (0.4%)
14,598 Arch Capital Group (1) 548,447
9,200 Everest Real Estate Group 730,204
13,701 IPC Holdings 554,342
10,026 PartnerRe Holdings 583,012
10,400 Platinum Underwriters Holdings 304,200
13,300 Renaissancere Holdings 622,706
----------
3,342,911
----------
Total Bermuda 8,798,349
----------
CANADA (4.7%)
AIRLINES (0.0%)
7,400 Transat AT (1) 136,503
----------
ALUMINUM (0.2%)
37,309 Alcan 1,723,601
----------
APPLICATION SOFTWARE (0.1%)
18,700 Cognos (1) 741,255
30,200 GEAC Computer (1) 208,472
----------
949,727
----------
ASSET MANAGEMENT & CUSTODY BANKS (0.1%)
45,900 CI Fund Management 583,275
----------
AUTO PARTS & EQUIPMENT (0.1%)
14,000 Magna International 1,030,818
----------
BUILDING PRODUCTS (0.1%)
16,300 Masonite International (1) 455,024
----------
COMMODITY CHEMICALS (0.1%)
46,131 Methanex 724,254
----------
COMMUNICATIONS EQUIPMENT (0.2%)
255,506 Nortel Networks (1) 863,033
4,500 Research In Motion (1) 396,044
----------
1,259,077
----------
DEPARTMENT STORES (0.0%)
18,300 Hudson's Bay 207,193
----------
DIVERSIFIED BANKS (1.3%)
26,371 Bank of Nova Scotia 856,152
49,274 Canadian Imperial Bank of Commerce 2,985,324
26,915 National Bank of Canada 1,076,379
59,650 Royal Bank of Canada 3,100,480
66,048 Toronto-Dominion Bank 2,652,208
----------
10,670,543
----------
DIVERSIFIED METALS & MINING (0.2%)
25,000 AUR Resources (1) 125,026
16,200 Falconbridge 407,075
13,200 Inmet Mining (1) 226,406
52,400 Noranda 900,863
----------
1,659,370
----------
ELECTRIC UTILITIES (0.1%)
86,800 TransAlta 1,181,291
----------
The accompanying notes are an integral part of the financial statements.
4
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------ ---------
ELECTRONIC MANUFACTURING SERVICES (0.0%)
7,200 Onex $ 102,119
---------
FOREST PRODUCTS (0.1%)
52,600 Norbord 474,791
---------
GENERAL MERCHANDISE STORES (0.2%)
30,419 Canadian Tire 1,303,048
---------
GOLD (0.1%)
42,000 Goldcorp 580,889
15,700 Meridian Gold (1) 265,539
---------
846,428
---------
INDUSTRIAL CONGLOMERATES (0.0%)
6,700 CHC Helicopter 251,082
---------
INTEGRATED OIL & GAS (0.4%)
34,693 Husky Energy 910,167
42,421 Petro-Canada 2,312,070
---------
3,222,237
---------
INTEGRATED TELECOMMUNICATION SERVICES (0.3%)
70,613 BCE 1,637,747
6,400 PetroKazakhstan 236,114
35,800 TELUS 813,003
---------
2,686,864
---------
LIFE & HEALTH INSURANCE (0.2%)
13,300 Great West Lifeco 277,067
7,300 Power Finance 179,545
23,630 Sun Life Financial 725,706
---------
1,182,318
---------
MOVIES & ENTERTAINMENT (0.0%)
4,391 Astral Media 101,518
---------
MULTI-LINE INSURANCE (0.0%)
1,800 Fairfax Financial Holdings 265,613
---------
OIL & GAS DRILLING (0.1%)
9,800 Ensign Resource Service Group 181,980
9,700 Precision Drilling (1) 599,615
---------
781,595
---------
OIL & GAS EXPLORATION & PRODUCTION (0.5%)
45,431 EnCana 2,249,668
34,969 Nexen 1,484,767
8,627 Penn West Petroleum 523,384
---------
4,257,819
---------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.1%)
42,523 Power Corp. of Canada 1,022,156
---------
PHARMACEUTICALS (0.0%)
6,000 Axcan Pharma (1) 90,264
---------
PUBLISHING (0.1%)
25,916 Thomson 898,322
9,100 Torstar 163,908
---------
1,062,230
---------
REAL ESTATE FUND (0.0%)
279 Retirement Residences Real Estate Investment Trust 2,253
---------
REGIONAL BANKS (0.0%)
8,000 Laurentian Bank of Canada 185,260
---------
SEMICONDUCTORS (0.0%)
15,300 ATI Technologies (1) 275,958
---------
SOFT DRINKS (0.0%)
8,800 Cott (1) 230,867
---------
TOBACCO (0.0%)
7,600 Rothmans 211,909
---------
The accompanying notes are an integral part of the financial statements.
5
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- --------- --------------
WIRELESS TELECOMMUNICATION
SERVICES (0.1%)
13,567 Manitoba Telecom Services $ 468,825
------------
Total Canada 39,605,830
------------
CAYMAN ISLANDS (0.0%)
COMPUTER STORAGE & PERIPHERALS (0.0%)
18,900 Seagate Technology (1) 238,896
------------
ISRAEL (0.1%)
SYSTEMS SOFTWARE (0.1%)
29,300 Check Point Software
Technologies (1) 662,795
------------
SWEDEN (0.0%)
AUTO PARTS & EQUIPMENT (0.0%)
6,713 Autoliv 286,981
------------
SWITZERLAND (0.1%)
HEALTH CARE SUPPLIES (0.1%)
7,300 Alcon 519,760
------------
UNITED STATES (88.8%)
ADVERTISING (0.2%)
20,676 Omnicom Group 1,631,336
7,500 Valassis
Communications (1) 257,850
------------
1,889,186
------------
AEROSPACE & DEFENSE (1.9%)
14,000 Alliant Techsystems (1) 804,860
38,807 Boeing 1,936,469
18,435 General Dynamics 1,882,582
48,039 Honeywell International 1,617,954
13,400 L-3 Communications
Holdings 883,462
39,017 Lockheed Martin 2,149,447
12,070 Northrop Grumman 624,622
24,631 Raytheon 898,539
20,800 Rockwell Collins 737,776
10,200 United Defense
Industries (1) 409,428
40,949 United Technologies 3,800,886
------------
15,746,025
------------
AGRICULTURAL PRODUCTS (0.1%)
15,500 Corn Products
International 762,600
------------
AIR FREIGHT & LOGISTICS (0.5%)
15,429 FedEx 1,405,890
32,877 United Parcel Service 2,603,201
------------
4,009,091
------------
ALUMINUM (0.3%)
77,986 Alcoa 2,534,545
------------
APPAREL RETAIL (0.3%)
6,450 AnnTaylor Stores (1) 144,867
22,400 Ross Stores 588,448
13,300 Talbots 350,987
54,200 TJX 1,299,716
------------
2,384,018
------------
APPAREL, ACCESSORIES
& LUXURY GOODS (0.2%)
20,900 Jones Apparel Group 737,770
18,277 Liz Claiborne 747,164
------------
1,484,934
------------
APPLICATION SOFTWARE (0.4%)
11,300 Epicor Software (1) 173,681
19,700 InterVoice (1) 243,886
19,300 Intuit (1) 875,448
5,800 Kronos (1) 284,490
5,800 MicroStrategy (1) 347,884
12,800 RSA Security (1) 261,888
13,400 Sonic Solutions (1) 265,990
The accompanying notes are an integral part of the financial statements.
6
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- --------- ------------
4,700 SS&C Technologies $ 111,108
38,700 Synopsys (1) 628,488
------------
3,192,863
------------
ASSET MANAGEMENT
& CUSTODY BANKS (1.6%)
532 Affiliated Managers
Group (1) 29,707
74,544 Bank of New York 2,419,698
3,811 Blackrock 280,109
19,574 Federated Investors 567,450
7,000 Investors Financial Services 269,430
58,512 Mellon Financial 1,690,997
89,279 Morgan Stanley 4,561,264
28,000 Northern Trust 1,191,120
11,600 SEI Investments 417,484
47,906 State Street 2,158,165
------------
13,585,424
------------
AUTO PARTS & EQUIPMENT (0.2%)
7,400 American Axle &
Manufacturing Holdings 212,380
22,436 Johnson Controls 1,286,705
8,700 Lear 469,104
5,600 TRW Automotive
Holdings (1) 102,816
------------
2,071,005
------------
AUTOMOBILE MANUFACTURERS (0.5%)
155,641 Ford Motor 2,028,002
50,912 General Motors 1,962,658
------------
3,990,660
------------
BIOTECHNOLOGY (0.9%)
65,423 Amgen (1) 3,716,026
19,200 Biogen Idec (1) 1,116,672
7,500 Cephalon (1) 357,525
2,928 Charles River Laboratories
International (1) 137,001
26,584 Genentech (1) 1,210,370
38,000 Gilead Sciences (1) 1,315,940
------------
7,853,534
------------
BREWERS (0.5%)
76,686 Anheuser Busch 3,830,466
7,200 Coors (Adolph), Class B 480,240
------------
4,310,706
------------
BROADCASTING & CABLE TV (0.6%)
50,507 Clear Channel
Communications 1,686,934
22,577 Comcast (Non-Voting) (1) 655,636
36,471 Comcast, Class A (1) 1,075,895
8,100 Hearst-Argyle Television 211,086
138,823 Liberty Media, Class A (1) 1,238,301
------------
4,867,852
------------
BUILDING PRODUCTS (0.3%)
27,900 American Standard (1) 1,020,303
39,100 Masco 1,339,566
10,600 USG (1) 237,334
------------
2,597,203
------------
CASINOS & GAMING (0.4%)
7,200 Ameristar Casinos 250,020
17,500 GTech Holdings 414,225
16,500 Harrah's Entertainment 965,580
11,610 International Game Technology 383,594
11,200 Mandalay Resort Group 770,560
7,000 Penn National Gaming (1) 290,710
14,400 Scientific Games, Class A 304,992
------------
3,379,681
------------
COMMERCIAL PRINTING (0.0%)
3,600 John H. Harland 116,028
------------
The accompanying notes are an integral part of the financial statements.
7
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- --------- ------------
COMMUNICATIONS EQUIPMENT (2.4%)
25,600 Aspect
Communications (1) $ 243,584
15,600 Avaya (1) 224,640
438,415 Cisco Systems (1) 8,421,952
56,964 Corning (1) 652,238
14,300 Ditech
Communications (1) 328,042
24,800 Foundry Networks (1) 300,824
7,100 Inter-Tel 191,700
13,200 Interdigital
Communications (1) 209,880
52,400 JDS Uniphase (1) 166,108
28,108 Juniper Networks (1) 747,954
258,180 Lucent Technologies (1) 916,539
134,796 Motorola 2,326,579
6,300 Plantronics (1) 274,050
119,950 Qualcomm 5,015,109
19,300 Scientific - Atlanta. 528,627
15,300 Utstarcom (1) 261,936
------------
20,809,762
------------
COMPUTER & ELECTRONICS RETAIL (0.3%)
31,330 Best Buy 1,855,362
28,620 Radioshack 856,597
------------
2,711,959
------------
COMPUTER HARDWARE (2.7%)
19,245 Apple Computer (1) 1,010,940
181,738 Dell (1) 6,371,734
226,042 Hewlett Packard 4,217,944
122,416 IBM 10,986,836
82,060 Sun Microsystems (1) 371,732
------------
22,959,186
------------
COMPUTER STORAGE
& PERIPHERALS (0.6%)
5,100 Avid Technology (1) 270,198
141,309 EMC (1) 1,818,647
9,400 Hutchinson Technology (1) 315,934
13,100 Lexmark International (1) 1,088,741
79,200 Maxtor (1) 234,432
14,900 QLogic (1) 484,250
9,800 Sandisk (1) 204,526
33,100 Western Digital (1) 275,723
------------
4,692,451
------------
CONSTRUCTION &
ENGINEERING (0.1%)
10,500 Jacobs Engineering
Group (1) 427,665
------------
CONSTRUCTION & FARM MACHINERY
& HEAVY TRUCKS (0.5%)
17,000 AGCO (1) 330,140
29,912 Caterpillar 2,409,113
32,236 John Deere 1,927,068
------------
4,666,321
------------
CONSTRUCTION MATERIALS (0.0%)
5,100 Texas Industries 259,743
341 Vulcan Materials 16,975
------------
276,718
------------
CONSUMER FINANCE (1.2%)
75,301 American Express 3,996,224
26,500 Americredit (1) 514,100
21,900 Capital One Financial 1,615,344
9,200 CompuCredit 175,076
114,659 MBNA 2,938,710
7,100 Nelnet (1) 137,811
15,200 SLM 687,952
2,200 WFS Financial (1) 96,932
------------
10,162,149
------------
The accompanying notes are an integral part of the financial statements.
8
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------- -------------
DATA PROCESSING &
OUTSOURCED SERVICES (1.1%)
16,148 Affiliated Computer
Services (1) $ 880,873
28,638 Automatic Data Processing 1,242,603
15,000 Certegy 530,250
25,432 Computer Sciences (1) 1,263,207
27,200 Convergys (1) 353,872
17,200 DST Systems (1) 771,420
7,900 Euronet Worldwide (1) 181,068
71,384 First Data 2,946,732
22,899 FISERV (1) 813,830
29,381 SunGard Data Systems (1) 778,303
-------------
9,762,158
-------------
DEPARTMENT STORES (0.5%)
27,800 Federated Department Stores 1,402,510
31,700 Kohl's (1) 1,609,092
33,277 May Department Stores 867,199
5,100 Neiman Marcus Group 310,233
4,571 Sears Roebuck 159,985
-------------
4,349,019
-------------
DISTRIBUTORS (0.0%)
19,200 Adesa (1) 386,880
-------------
DIVERSIFIED BANKS (3.3%)
239,415 Bank of America 10,723,398
26,500 Comerica 1,630,015
155,518 U.S. Bancorp 4,449,370
112,140 Wachovia 5,518,409
99,093 Wells Fargo 5,917,834
-------------
28,239,026
-------------
DIVERSIFIED CHEMICALS(0.9%)
75,203 Dow Chemical 3,379,623
91,217 DuPont (E.I.) de Nemours 3,910,473
-------------
7,290,096
-------------
DIVERSIFIED COMMERCIAL
SERVICES (0.8%)
34,600 Aramark 780,230
19,600 Career Education (1) 614,852
100,402 Cendant 2,067,277
37,400 Corinthian Colleges (1) 537,064
12,700 Deluxe 483,743
8,432 Dun & Bradstreet 476,914
21,289 Equifax 556,707
24,300 H&R Block 1,155,465
3,200 Prepaid Legal Services (1) 89,248
3,200 Rollins 84,320
-------------
6,845,820
-------------
DIVERSIFIED METALS & MINING (0.0%)
2,800 Alliance Resource Partners L.P. 162,120
-------------
DRUG RETAIL (0.2%)
9,217 CVS 400,571
38,136 Walgreen 1,368,701
-------------
1,769,272
-------------
ELECTRIC UTILITIES (2.2%)
6,400 Allete 217,472
37,643 Alliant Energy 993,022
18,300 Black Hills 539,118
51,300 CenterPoint Energy 539,163
7,900 Cleco 143,938
24,002 DTE Energy 1,025,126
37,100 Duquesne Light Holdings 636,636
45,005 Edison International 1,372,653
4,947 Entergy 323,336
65,000 Excel Energy 1,111,500
19,702 Exelon 780,593
23,700 FPL Group 1,632,930
38,371 Great Plains Energy 1,093,190
The accompanying notes are an integral part of the financial statements.
9
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------- -------------
20,100 Idacorp $ 622,698
63,480 Northeast Utilities 1,227,068
22,283 NSTAR 1,102,340
21,732 OGE Energy 551,341
16,000 PG&E (1) 512,640
30,592 Pinnacle West Capital 1,303,831
34,700 Progress Energy 1,433,110
30,097 Southern 950,764
20,900 Unisource Energy 513,931
-------------
18,626,400
-------------
ELECTRICAL COMPONENTS
& EQUIPMENT (0.2%)
29,568 American Power Conversion 570,071
8,200 Ametek 269,944
11,815 Emerson Electric 756,751
-------------
1,596,766
-------------
ELECTRONIC EQUIPMENT
MANUFACTURERS (0.2%)
14,890 Agilent Technologies (1) 373,143
8,400 Amphenol (1) 288,372
9,700 BEI Technologies 289,933
4,000 Flir Systems (1) 212,840
37,600 Lexar Media (1) 254,176
-------------
1,418,464
-------------
ELECTRONIC MANUFACTURING
SERVICES (0.0%)
6,700 Taser International (1) 274,030
-------------
ENVIRONMENTAL SERVICES (0.2%)
60,893 Waste Management 1,734,233
-------------
FOOD RETAIL (0.1%)
4,100 Ruddick 82,533
10,600 Whole Foods Market 863,158
-------------
945,691
-------------
FOOTWEAR (0.1%)
4,500 Brown Shoe 122,850
3,641 Nike 296,050
5,700 Timberland (1) 349,980
-------------
768,880
-------------
FOREST PRODUCTS (0.3%)
28,200 Louisiana Pacific 691,182
24,643 Weyerhaeuser 1,543,638
-------------
2,234,820
-------------
GAS UTILITIES (0.4%)
10,954 Atmos Energy 282,723
5,963 Enterprise Products Partners L.P. 137,507
27,800 KeySpan 1,110,610
15,962 Nicor 598,894
50,000 Nisource Finance 1,072,500
3,600 WGL Holdings 102,420
-------------
3,304,654
-------------
GENERAL MERCHANDISE STORES (0.6%)
39,200 Dollar General 754,600
26,700 Family Dollar Stores 788,985
71,893 Target 3,596,088
-------------
5,139,673
-------------
GOLD (0.1%)
17,600 Newmont Mining 836,352
-------------
HEALTH CARE SERVICES (0.7%)
15,500 Apria Healthcare Group (1) 424,080
6,900 Caremark Rx (1) 206,793
11,100 Covance (1) 440,892
18,000 DaVita (1) 533,160
48,000 IMS Health 1,016,640
32,500 Lincare Holdings (1) 1,194,700
The accompanying notes are an integral part of the financial statements.
10
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------- -------------
7,900 Pediatrix Medical Group (1) $ 444,375
11,000 Quest Diagnostic 962,940
10,350 Renal Care Group (1) 326,646
-------------
5,550,226
-------------
HEALTH CARE DISTRIBUTORS (0.3%)
15,900 Cardinal Health 743,325
51,100 McKesson 1,362,326
25,300 Omnicare 698,027
-------------
2,803,678
-------------
HEALTH CARE EQUIPMENT (1.4%)
26,300 Baxter International 808,988
14,100 Beckman Coulter 838,950
26,800 Becton Dickinson 1,407,000
4,900 Bio Rad Laboratories (1) 254,898
32,000 Biomet 1,493,760
20,791 Boston Scientific (1) 733,922
6,700 Fisher Scientific
International (1) 384,312
8,551 Guidant 569,668
64,774 Medtronic 3,310,599
9,400 Mentor 327,120
6,700 Respironics (1) 342,303
20,300 Steris (1) 420,819
19,062 Waters (1) 787,070
-------------
11,679,409
-------------
HEALTH CARE FACILITIES (0.5%)
52,800 HCA 1,939,344
14,500 Select Medical 249,255
10,800 Universal Health Services 448,848
15,100 Wellpoint Health Networks (1) 1,474,666
-------------
4,112,113
-------------
HEALTH CARE SUPPLIES (0.1%)
9,900 Bausch & Lomb 603,504
-------------
HOME ENTERTAINMENT SOFTWARE (0.2%)
17,600 Activision (1) 254,848
29,395 Electronic Art (1) 1,320,423
-------------
1,575,271
-------------
HOME FURNISHINGS (0.0%)
16,700 Furniture Brands International 364,227
-------------
HOME IMPROVEMENT RETAIL (1.1%)
32,726 Lowes 1,841,819
173,581 The Home Depot 7,130,708
-------------
8,972,527
-------------
HOMEBUILDING (0.4%)
5,000 Beazer Homes USA 548,900
20,700 Centex 1,075,158
21,500 Lennar 967,070
6,500 Ryland Group 620,035
-------------
3,211,163
-------------
HOTELS, RESORTS & CRUISE
LINES (0.1%)
22,536 Carnival 1,139,420
-------------
HOUSEHOLD APPLIANCES (0.2%)
4,600 Helen of Troy (1) 122,130
29,619 Maytag 515,371
16,600 Whirlpool 975,250
-------------
1,612,751
-------------
HOUSEHOLD PRODUCTS (1.9%)
22,741 Church & Dwight 619,010
24,200 Clorox 1,321,320
22,751 Colgate Palmolive 1,015,150
53,716 Kimberly Clark 3,205,234
191,164 Proctor & Gamble 9,783,773
-------------
15,944,487
-------------
HOUSEWARES & SPECIALTIES (0.2%)
3,900 Jarden (1) 136,968
The accompanying notes are an integral part of the financial statements.
11
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------- -------------
61,100 Newell Rubbermaid $ 1,317,316
10,100 Yankee Candle (1) 279,770
-------------
1,734,054
-------------
HYPERMARKETS & SUPER CENTERS (1.3%)
21,091 BJ'S Wholesale Club (1) 612,272
191,980 Wal-Mart Stores 10,351,561
-------------
10,963,833
-------------
INDUSTRIAL CONGLOMERATES (3.5%)
47,792 3M 3,707,226
4,200 Carlisle 244,146
754,803 General Electric 25,753,878
5,900 Teleflex 258,361
-------------
29,963,611
-------------
INDUSTRIAL GASES (0.2%)
31,400 Praxair 1,325,080
-------------
INDUSTRIAL MACHINERY (0.5%)
3,100 Briggs & Stratton 222,611
5,946 Danaher 327,803
15,423 Eaton 986,301
8,000 IDEX 295,200
10,337 Illinois Tool Works 953,898
12,200 ITT Industries 989,908
18,200 SPX 697,970
-------------
4,473,691
-------------
INSURANCE BROKERS (0.2%)
52,235 Marsh & McClennan 1,444,820
-------------
INTEGRATED OIL & GAS (4.5%)
19,300 Amerada Hess 1,557,703
123,242 ChevronTexaco 6,539,221
56,494 ConocoPhillips 4,763,009
469,673 Exxon Mobil 23,117,305
6,000 Ferrellgas Partners L.P. 126,480
52,890 Marathon Oil 2,015,638
-------------
38,119,356
-------------
INTEGRATED TELECOMMUNICATION
SERVICES (2.5%)
26,330 Alltel 1,446,307
139,510 BellSouth 3,720,732
20,256 CenturyTel 650,015
43,600 Citizens Communications (1) 584,240
9,100 Commonwealth Telephone
Enterprises (1) 415,233
195,522 SBC Communications 4,938,886
77,021 Sprint - FON Group 1,613,590
202,074 Verizon Communications 7,901,093
-------------
21,270,096
-------------
INTERNET RETAIL (0.4%)
15,900 Amazon.Com (1) 542,667
30,513 eBay (1) 2,978,374
-------------
3,521,041
-------------
INTERNET SOFTWARE & SERVICES (0.5%)
7,200 ASK Jeeves (1) 185,616
14,700 Digatas (1) 132,300
8,400 Digital River (1) 279,720
14,100 FindWhat.com (1) 282,705
25,900 United Online (1) 243,201
12,300 WebEx Communications (1) 270,600
7,300 Websense (1) 296,161
60,420 Yahoo! (1) 2,186,600
-------------
3,876,903
-------------
INVESTMENT BANKING & BROKERAGE (1.1%)
51,400 Ameritrade Holding (1) 669,228
13,033 Bear Stearns 1,234,877
43,401 Charles Schwab 397,119
19,100 E*Trade Financial (1) 246,390
The accompanying notes are an integral part of the financial statements.
12
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------- -------------
21,795 Goldman Sachs Group $ 2,144,192
25,943 Lehman Brothers Holdings 2,131,217
39,352 Merrill Lynch 2,122,647
-------------
8,945,670
-------------
IT CONSULTING & OTHER
SERVICES (0.0%)
9,200 Cognizant Technology
Solutions (1) 312,800
-------------
LEISURE FACILITIES (0.0%)
556 Cedar Fair L.P 16,202
-------------
LEISURE PRODUCTS (0.0%)
5,200 RC2 (1) 144,872
-------------
LIFE & HEALTH INSURANCE (0.8%)
10,200 Amerus Group 426,156
18,200 Conseco (1) 305,032
23,000 Jefferson Pilot 1,110,670
5,293 Landamerica Financial Group 259,093
22,000 Lincoln National 963,600
76,198 Metlife 2,922,193
16,700 Nationwide Financial Services 577,820
-------------
6,564,564
-------------
MANAGED HEALTH CARE (1.0%)
14,100 Aetna 1,339,500
13,900 Anthem Insurance (1) 1,117,560
17,013 Cigna 1,079,645
8,200 Coventry Health Care (1) 335,380
18,200 First Health Group (1) 289,744
54,012 Unitedhealth Group 3,910,469
-------------
8,072,298
-------------
METAL & GLASS CONTAINERS (0.1%)
25,600 Ball 1,020,160
2,700 Silgan Holdings 128,128
-------------
1,148,288
-------------
MOTORCYCLE MANUFACTURERS (0.2%)
27,611 Harley Davidson 1,589,565
-------------
MOVIES & ENTERTAINMENT (1.4%)
4,800 Carmike Cinemas 171,840
317,666 Time Warner (1) 5,285,963
94,176 Viacom 3,436,482
122,732 Walt Disney 3,095,301
-------------
11,989,586
-------------
MULTI-LINE INSURANCE (1.7%)
5,100 American Financial Group 150,960
197,484 American International Group 11,989,254
8,600 HCC Insurance Holdings 255,420
30,200 The Hartford Financial
Services Group 1,766,096
11,592 Unitrin 500,542
-------------
14,662,272
-------------
MULTI-UTILITIES & UNREGULATED
POWER (0.8%)
4,800 Avista 85,344
95,524 Duke Energy 2,343,204
50,500 Energy East 1,272,600
657 MDU Resources Group 16,852
22,710 National Fuel & Natural Gas 636,334
42,921 Public Service Enterprise Group 1,828,005
30,900 Sempra Energy 1,036,386
-------------
7,218,725
-------------
OFFICE ELECTRONICS (0.2%)
88,952 Xerox (1) 1,313,821
-------------
OFFICE SERVICES & SUPPLIES (0.1%)
27,656 Pitney Bowes 1,209,950
-------------
The accompanying notes are an integral part of the financial statements.
13
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
- ------- -------------
OIL & GAS DRILLING (0.4%)
25,004 GlobalSantaFe $ 737,618
13,600 Helmerich & Payne 388,280
21,619 Noble (1) 987,556
18,174 Schlumberger 1,143,871
-------------
3,257,325
-------------
OIL & GAS EQUIPMENT
& SERVICES (0.3%)
14,000 FMC Technologies (1) 423,220
40,800 Halliburton 1,511,232
12,100 Maverick Tube (1) 319,077
-------------
2,253,529
-------------
OIL & GAS EXPLORATION
& PRODUCTION (1.2%)
27,073 Anadarko Petroleum 1,826,074
8,200 Apache 415,740
25,330 Devon Energy 1,873,660
17,600 Forest Oil 536,800
24,932 Kerr-McGee 1,476,473
30,100 Pioneer Natural Resources 975,240
17,100 Pogo Producing 784,035
16,300 Stone Energy (1) 671,071
46,896 Unocal 1,957,908
-------------
10,517,001
-------------
OIL & GAS REFINING & MARKETING
& TRANSPORTATION (0.3%)
8,500 General Maritime (1) 323,000
7,300 Overseas Shipholding Group 415,735
21,600 Sunoco 1,606,176
14,800 Western Gas Resources 433,492
-------------
2,778,403
-------------
OTHER DIVERSIFIED FINANCIAL
SERVICES (3.1%)
368,939 Citigroup 16,369,824
264,912 JPMorgan Chase 10,225,603
-------------
26,595,427
-------------
PACKAGED FOODS & MEATS (1.3%)
44,900 Dean Foods (1) 1,340,265
43,415 H.J. Heinz 1,578,135
30,128 Hershey Foods 1,527,188
36,700 Kellogg 1,578,100
31,400 McCormick 1,112,502
7,300 Sanderson Farms 237,177
76,086 Sara Lee 1,771,282
65,553 Tyson Foods 950,519
14,670 Wrigley (WM) Jr. 959,418
-------------
11,054,586
-------------
PAPER PACKAGING (0.1%)
16,800 Bemis 444,696
11,600 Temple-Inland 685,792
-------------
1,130,488
-------------
PAPER PRODUCTS (0.2%)
30,500 Georgia Pacific 1,054,995
3,607 International Paper 138,906
8,200 Schweitzer-Mauduit
International 258,792
-------------
1,452,693
-------------
PERSONAL PRODUCTS (0.8%)
9,983 Alberto-Culver 447,837
44,600 Avon Products 1,763,930
91,472 Gillette 3,794,259
13,400 NBTY (1) 369,036
-------------
6,375,062
-------------
The accompanying notes are an integral part of the financial statements.
14
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
------ -----
PHARMACEUTICALS (5.9%)
72,220 Abbott Laboratories $ 3,078,738
164,028 Bristol-Myers Squibb 3,843,176
90,912 Eli Lilly 4,991,978
227,282 Johnson & Johnson 13,268,723
5,800 Kos Pharmaceuticals (1) 207,060
176,013 Merck 5,510,967
558,102 Pfizer 16,157,053
35,818 Schering Plough 648,664
70,458 Wyeth 2,793,660
-------------
50,500,019
-------------
PROPERTY & CASUALTY INSURANCE (1.9%)
68,031 Allstate 3,271,611
19,110 Berkley (WR) 816,761
31 Berkshire Hathaway (1) 2,611,750
28,200 Chubb 2,034,066
35,490 Cincinnati Financial 1,481,707
29,168 Fidelity National Financial 1,100,800
27,061 First American 844,033
23,458 MBIA 1,357,280
4,100 Mercury General 210,863
23,800 Safeco 1,100,512
10,700 Selective Insurance Group 418,156
5,700 Stewart Information Services 241,794
8,500 Zenith National Insurance 349,095
-------------
15,838,428
-------------
PUBLISHING (0.5%)
22,212 Gannett 1,842,485
4,600 Getty Images (1) 271,998
1,705 Lee Enterprises 78,976
17,451 McGraw-Hill 1,505,149
4,700 Meredith 230,300
10,178 Tribune 439,689
-------------
4,368,597
-------------
RAILROADS (0.3%)
36,300 Union Pacific 2,285,811
-------------
REAL ESTATE INVESTMENT TRUSTS (0.8%)
51,100 Annaly Mortgag Management 918,778
52,500 Anworth Mortgage Asset 537,075
13,900 Boston Properties 830,108
17,700 Brandywine Realty Trust 520,734
7,600 CarrAmerica Realty 244,948
47,747 Equity Office Properties Trust 1,342,646
20,000 Friedman Billings Ramsey Group 342,800
26,400 IMPAC Mortgage Holdings 596,904
12,400 Liberty Property Trust 502,820
27,600 MFA Mortgage Investments 232,944
9,100 New Century Financial 501,865
17,800 Thornburg Mortgage 508,546
-------------
7,080,168
-------------
REGIONAL BANKS (2.0%)
60,200 AmSouth Bancorp 1,588,678
10,359 BB&T Financial 425,858
16,300 City National 1,123,070
1,302 Community First Bankshares 41,950
23,100 Compass Bancshares 1,103,487
59,147 Fifth Third Bancorp 2,909,441
4,800 First Financial Bancorp 83,712
31,900 First Horizon National 1,380,632
51,400 Huntington Bancshares 1,231,030
69,537 National City 2,709,857
4,400 Oriental Financial Group 124,652
8,992 PNC Financial Services Group 470,282
14,200 South Financial Group 426,284
29,871 SunTrust Banks 2,102,321
The accompanying notes are an integral part of the financial statements.
15
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
------ -----
12,900 Westcorp $ 514,968
13,900 Zions Bancorp 919,763
------------
17,155,985
------------
REINSURANCE (0.0%)
2,800 Reinsurance Group of America 120,624
------------
RESTAURANTS (1.0%)
6,700 Applebees International 153,229
20,300 Brinker International (1) 655,690
21,000 CBRL Group 761,460
41,100 Darden Restaurants 1,006,950
6,100 Landry's Restaurants 165,188
111,650 McDonald's 3,254,597
5,869 Outback Steakhouse 232,354
12,700 Starbucks (1) 671,576
19,564 Wendy's International 652,851
26,062 Yum! Brands 1,133,697
------------
8,687,592
------------
SEMICONDUCTOR EQUIPMENT (0.3%)
49,200 Amkor Technology (1) 245,016
91,805 Applied Material (1) 1,478,060
7,600 Cabot Microelectronics (1) 273,828
25,400 MEMC Electronic Materials (1) 238,760
------------
2,235,664
------------
SEMICONDUCTORS (2.5%)
52,100 Altera (1) 1,184,233
33,387 Analog Devices 1,344,161
12,000 DSP Group (1) 237,960
11,300 Integrated Circuit Systems (1) 254,815
473,037 Intel 10,529,803
35,426 Linear Technology 1,341,937
35,735 Maxim Integrated Products 1,571,983
25,800 Microchip Technology 780,450
45,300 National Semiconductor (1) 756,510
20,600 Omnivision Technologies (1) 327,540
9,300 Silicon Laboratories (1) 278,721
98,760 Texas Instruments 2,414,682
15,400 Xilinx 471,240
------------
21,494,035
------------
SOFT DRINKS (1.6%)
146,039 Coca-Cola 5,937,946
60,800 Coca-Cola Enterprises 1,271,328
29,800 Pepsi Bottling Group 835,592
35,800 Pepsiamericas 724,950
89,444 Pepsico 4,434,633
------------
13,204,449
------------
SPECIALIZED FINANCE (0.2%)
35,300 CIT Group 1,426,120
12,100 eSpeed, Class A (1) 119,185
7,900 GATX 215,512
------------
1,760,817
------------
SPECIALTY CHEMICALS (0.3%)
29,543 Ecolab 1,000,031
25,400 Rohm and Hass 1,076,706
19,800 RPM International 349,074
9,300 Sigma Aldrich 517,452
------------
2,943,263
------------
SPECIALTY STORES (0.7%)
13,600 Advance Auto Parts (1) 532,032
9,300 Autozone (1) 760,833
9,800 Barnes & Noble (1) 326,046
16,700 Borders Group 380,593
12,700 Hollywood Entertainment (1) 123,444
3,100 Jo-Ann Stores (1) 76,446
13,781 Linens 'N Things (1) 331,846
The accompanying notes are an integral part of the financial statements.
16
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
SHARES VALUE
------ -------------
40,000 Office Depot (1) $ 647,600
6,200 Regis 265,360
11,500 Rent-A-Center (1) 275,885
55,800 Staples 1,659,492
7,500 United Auto Group 202,500
14,800 Weight Watchers International (1) 531,616
9,000 Zale (1) 256,680
-------------
6,370,373
-------------
SYSTEMS SOFTWARE (3.6%)
27,500 Adobe Systems 1,540,825
17,100 Computer Associates International 473,841
760,574 Microsoft 21,288,466
390,595 Oracle (1) 4,944,933
17,900 Symantec (1) 1,019,226
6,600 Transaction Systems Architects 108,207
46,100 Veritas Software (1) 1,008,668
-------------
30,384,166
-------------
THRIFTS & MORTGAGE FINANCE (2.1%)
56,394 Countrywide Financial 1,800,660
13,200 Doral Financial 554,136
82,292 Fannie Mae 5,772,784
56,460 Freddie Mac 3,760,236
13,200 Freemont General 283,800
13,400 Independence Community Bank 504,242
11,800 IndyMac Bancorp 380,668
25,627 Netbank 237,819
15,900 Radian Group 762,087
24,400 The PMI Group 947,208
73,289 Washington Mutual 2,837,017
-------------
17,840,657
-------------
TOBACCO (0.9%)
158,399 Altria Group 7,676,016
3,100 Universal 141,918
-------------
7,817,934
-------------
TRADING COMPANIES & DISTRIBUTORS (0.0%)
11,700 Watsco 332,982
-------------
TRUCKING (0.1%)
4,800 Overnite 155,328
20,436 Swift Transportation (1) 386,240
12,900 Werner Enterprises 273,480
-------------
815,048
-------------
WIRELESS TELECOMMUNICATION SERVICES (0.4%)
96,699 Nextel Communications (1) 2,561,556
8,780 Telephone & Data Systems 657,622
7,300 US Cellular (1) 304,045
-------------
3,523,223
-------------
Total United States 754,790,143
-------------
TOTAL COMMON STOCKS
(Cost $757,643,693) 804,902,754
-------------
The accompanying notes are an integral part of the financial statements.
17
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
OCTOBER 31, 2004 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
------ -----
SHORT-TERM INVESTMENTS (5.0%)
TIME DEPOSIT (2.4%)
$ 20,266,750 J.P. Morgan Chase
Time Deposit
1.44%, due 10/01/04 $ 20,266,750
U.S. TREASURY BILL (2.6%)
22,655,000 U.S. Treasury Bill
1.47%, 12/09/04 22,618,947
--------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $42,884,086) 42,885,697
--------------
TOTAL INVESTMENTS
(Cost $800,527,779)
(99.7%) 847,788,451
Other Assets
Less Liabilities (0.3%) 2,521,605
--------------
TOTAL NET ASSETS
(100.0%) $ 850,310,056
==============
- -------------------
(1)--Non-income producing security.
FUTURES CONTRACTS:
The Portfolio had the following futures contract(s) open at period end
NET
NUMBER UNREALIZED
OF VALUE EXPIRATION APPRECIATION
CONTRACTS (000) DATE (000)
--------- ----- ---------- ------------
LONG:
S&P 500
Index 131 $37,017 Dec-04 $122
The accompanying notes are an integral part of the financial statements.
18
SCHRODER NORTH AMERICAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2004 (UNAUDITED)
ASSETS:
Investments in securities, at value - Note 2................................................ $ 847,788,451
Foreign currency, at value.................................................................. 22,434
Initial margin for futures contracts........................................................ 2,096,000
Dividends receivable........................................................................ 959,896
Cash........................................................................................ 538,090
Interest receivable......................................................................... 22,607
Other assets................................................................................ 14,273
-------------
TOTAL ASSETS....................................................................... 851,441,751
-------------
LIABILITIES:
Payable for securities purchased............................................................ 755,958
Investment advisory fees.................................................................... 178,981
Administration fee payable.................................................................. 29,901
Custody fee payable......................................................................... 26,392
Sub-administration and accounting fees payable.............................................. 18,134
Accrued expenses and other liabilities...................................................... 122,329
-------------
TOTAL LIABILITIES.................................................................. 1,131,695
-------------
NET ASSETS......................................................................... $ 850,310,056
=============
NET ASSETS CONSIST OF:
Capital paid-in............................................................................. $ 754,385,929
Undistributed net investment income......................................................... 9,696,057
Accumulated net realized gain on investments, futures and foreign currency transactions..... 38,844,356
Net unrealized appreciation on investments, futures and foreign currency translations....... 47,383,714
-------------
NET ASSETS......................................................................... $ 850,310,056
=============
Net asset value, offering and redemption price per share.................................... $ 11.27
Total shares outstanding at end of period................................................... 75,444,072
Cost of securities.......................................................................... $ 800,527,779
Cost of foreign currency.................................................................... 22,434
The accompanying notes are an integral part of the financial statements.
19
SCHRODER NORTH AMERICAN EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2004 (UNAUDITED)
INVESTMENT INCOME:
Dividend income (net of $54,595 of non-recoverable withholding taxes)........ $ 7,304,458
Interest income.............................................................. 346,071
-----------
TOTAL INCOME........................................................ 7,650,529
-----------
EXPENSES:
Investment advisory fees - Note 3............................................ 1,092,331
Legal fees................................................................... 65,851
Sub-administration and accounting fees - Note 3.............................. 64,685
Insurance.................................................................... 61,084
Custodian fees............................................................... 39,926
Transfer agent fees.......................................................... 23,706
Trustees fees - Note 4....................................................... 20,183
Audit fees................................................................... 19,677
Registration fees............................................................ 15,929
Printing expense............................................................. 11,315
Other........................................................................ 8,650
-----------
TOTAL EXPENSES...................................................... 1,423,337
-----------
NET INVESTMENT INCOME............................................... 6,227,192
-----------
NET REALIZED GAIN ON:
Investments sold............................................................. 14,049,214
Futures contracts............................................................ 555,182
Foreign currency transactions................................................ 6,597
-----------
Net realized gain................................................... 14,610,993
-----------
CHANGE IN NET UNREALIZED APPRECIATION OR DEPRECIATION ON:
Investments and foreign currency............................................. 7,332,609
Futures contracts............................................................ 389,072
Translation of other assets and liabilities denominated in foreign currency.. 1,042
-----------
Change in net unrealized appreciation or depreciation............... 7,722,723
-----------
REALIZED AND UNREALIZED GAIN........................................ 22,333,716
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $28,560,908
===========
The accompanying notes are an integral part of the financial statements.
20
SCHRODER NORTH AMERICAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX
MONTHS ENDED FOR THE
OCTOBER 31, 2004 PERIOD ENDED
(UNAUDITED) APRIL 30, 2004*
---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income..................................................................... $ 6,227,192 $ 6,886,316
Net realized gain......................................................................... 14,610,993 28,722,933
Change in net unrealized appreciation..................................................... 7,722,723 39,660,991
------------- -------------
Net increase in net assets from operations....................................... 28,560,908 75,270,240
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income.................................................. -- (3,318,066)
Distributions from net realized gains..................................................... -- (2,416,556)
------------- -------------
Total distributions.............................................................. -- (5,734,622)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold................................................................. 33,028,612 912,481,565
Reinvestment of distributions............................................................. -- 2,388,426
Cost of shares redeemed................................................................... (52,104,477) (49,332,846)
Cost of shares redeemed in-kind........................................................... (50,104,077) (44,243,673)
------------- -------------
Net increase (decrease) in net assets resulting from capital share transactions.. (69,179,942) 821,293,472
------------- -------------
Total Increase (Decrease) in Net Assets.......................................... (40,619,034) 890,829,090
Net Assets, Beginning of Period.................................................. 890,929,090 100,000
------------- -------------
Net Assets, End of Period........................................................ $ 850,310,056 $ 890,929,090
============= =============
Net assets include accumulated undistributed net investment income............... $ 9,696,057 $ 3,468,865
============= =============
SHARE TRANSACTIONS:
Shares sold............................................................................... 2,987,981 90,339,017
Shares issued on reinvestment of distributions............................................ -- 227,465
Shares redeemed........................................................................... (4,772,005) (4,540,908)
Shares redeemed in-kind................................................................... (4,637,282) (4,170,196)
------------- -------------
Net increase (decrease) in shares outstanding.................................... (6,421,306) 81,855,378
============= =============
* The Fund commenced operations on September 17, 2003.
The accompanying notes are an integral part of the financial statements.
21
SCHRODER NORTH AMERICAN EQUITY FUND
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
FOR THE SIX
MONTHS ENDED FOR THE
OCTOBER 31, 2004 PERIOD ENDED
(UNAUDITED) APRIL 30, 2004*
---------------- ---------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.88 $ 10.00
---------------- ---------------
INVESTMENT OPERATIONS:
Net Investment Income................................... 0.08 0.09
Net Realized and Unrealized Gain on Investments......... 0.31 0.86
---------------- ---------------
Total from Investment Operations............... 0.39 0.95
---------------- ---------------
DISTRIBUTIONS FROM:
Net Investment Income................................... -- (0.04)
Net Realized Gain on Investments........................ -- (0.03)
---------------- ---------------
Total Distributions............................ -- (0.07)
---------------- ---------------
Net Asset Value, End of Period................. $ 11.27 $ 10.88
================ ===============
Total Return (a)............................... 3.58% 9.56%
================ ===============
RATIOS AND SUPPLEMENTAL DATA
Net Assets at End of Period (000's)..................... $ 850,310 $ 890,929
Ratio of Expenses to Average Net Assets (b)............. 0.33% 0.37%
Net investment income (loss) to Average Net Assets (b).. 1.42% 1.29%
Portfolio Turnover Rate (c)............................. 36% 54%
- -------------------
(a) Total return calculation is not annualized.
(b) Annualized.
(c) Not annualized.
* Fund commenced operations on September 17, 2003.
The accompanying notes are an integral part of the financial statements.
22
SCHRODER NORTH AMERICAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2004 (UNAUDITED)
NOTE 1 -- ORGANIZATION
Schroder Global Series Trust (the "Trust") is an open-end series management
investment company registered under the Investment Company Act of 1940, as
amended. The Trust is a Massachusetts business trust organized under the laws of
The Commonwealth of Massachusetts on May 27, 2003. Schroder North American
Equity Fund (the "Fund") is the only series of shares currently comprising the
Trust and commenced operations on September 17, 2003.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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 income and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
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 ask prices ("mid-market price") or, if none, the last sale price on the
preceding trading day. Securities traded in over-the-counter markets are valued
at the most recent reported mid-market price. Prices used for valuations
generally are provided by independent pricing services. Options on indices or
exchange-traded fund (ETF) shares are valued at the closing mid-market price;
certain options and futures contracts held by the Fund may be valued as of a
time that is up to 15 minutes after the close of trading on the New York Stock
Exchange. Short-term investments that will mature in 60 days or less are valued
using amortized cost, a form of fair valuation, pursuant to procedures adopted
by the Board of Trustees. All assets and liabilities of the Fund denominated in
foreign currencies are translated into U.S. dollars based on the mid-market
price of such currencies against the U.S. dollar at the time when last quoted.
Other securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith using methods
approved by the Fund's Board of Trustees ("Trustees"). Some of the more common
reasons that may necessitate that a security be valued using Fair Value
Procedures include: the security's trading has been halted or suspended; the
security has been de-listed from a national exchange; the security's 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 Valued
Procedures, the Committee will deter-
23
SCHRODER NORTH AMERICAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
mine the value after taking into consideration relevant information reasonably
available to the Committee.
REPURCHASE AGREEMENTS: When entering into repurchase agreements, it is the
Fund's policy that it take into 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, if required by
certain countries, are accrued on realized gains and unrealized appreciation. No
capital gains taxes have been accrued during the period ended October 31, 2004.
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 on 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.
EXPENSES: Expenses are recorded on an accrual basis.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders from net investment
income and from net realized capital gains, if any, are declared and distributed
at least annually. 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.
The Fund 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 values 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 Fund
entering into offsetting commit-
24
SCHRODER NORTH AMERICAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
ments.
WHEN-ISSUED SECURITIES: The 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: The Fund may purchase and sell a variety of "derivative"
instruments (for example options or futures) in order to gain exposure to
particular securities or markets, in connection with hedging transactions, and
to increase total return. The Fund's use of derivative instruments involves the
risk the instrument may not work as intended due to unanticipated developments
in market conditions or other causes. Derivatives often involve the risk that
the other party to the transaction will be unable to close out the position at
any particular time or at an acceptable price. When the 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 the Fund will engage in these transactions when
that would be beneficial.
FUTURES: Financial futures contracts (secured by cash and/or securities
deposited with brokers as "initial margin") 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 Statement 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 from the value of the
related securities. Futures contracts involve market risk that may exceed the
amounts recognized in the Statement of Net Assets. Risks arise from the possible
movements in the prices of securities relating to these instruments. The change
in value of futures contracts primarily corresponds with the value of their
related securities, but may not precisely correlate with the change in value of
such securities. In addition, there is the risk that a Portfolio may not be able
to enter into a closing transaction because of an illiquid secondary market.
ORGANIZATIONAL AND OFFERING COSTS: The Trust incurred organizational costs of
$102,355 which were borne by Schroder Investment Management North America Inc.
(the Fund's "Investment Adviser"). During the period ended April 30, 2004 and
pursuant to the Organizational Expense Reimburse-
25
SCHRODER NORTH AMERICAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
ment Agreement between the Investment Adviser and the Trust, the Trust
reimbursed such organizational costs to the Investment Adviser when the net
assets of the Trust exceeded $900 million in value.
In addition, the Trust incurred $21,155 in offering costs in connection with its
initial offering. These costs were amortized on a straight-line basis over a
one-year period, starting with the commencement of the Trust's operations.
NOTE 3 -- INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS
Under an Investment Advisory Agreement (the "Advisory Agreement") between the
Fund and Schroder Investment Management North America Inc. ("Schroder"), which
was approved by the Board of Trustees of the Trust and the shareholder of the
Fund in July 2003, Schroder, at its expense, provides the Fund with investment
advisory services. Schroder also manages the Fund's other affairs and business.
Schroder has retained its affiliate, Schroder Investment Management North
America Ltd. ("SIMNA Ltd."), to serve as sub-adviser responsible for day-to-day
investment decisions for the Fund.
Under the Advisory Agreement, Schroder is required to continuously furnish the
Fund investment programs consistent with the investment objective and policies
of the Fund, and to determine, for the Fund, what securities shall be purchased,
what securities shall be held or sold, and what portion of the Fund's assets
shall be held uninvested, subject always to the provisions of the Trust's
Declaration of Trust and By-laws, and of the Investment Company Act, and to the
Fund's investment objective, policies, and restrictions, and subject further to
such policies and instructions as the Trustees may from time to time establish.
As compensation for services provided to the Fund pursuant to the Advisory
Agreement, Schroder is entitled to receive from the Fund a fee, computed and
paid monthly, at the annual rate of 0.25% of the Fund's average daily net
assets. As compensation for SIMNA Ltd.'s services as sub-adviser to the Fund,
Schroder pays SIMNA Ltd. 25% of the investment adviser fees Schroder receives
from the Fund.
On behalf of the Fund, the Trust has entered into an administration agreement
with Schroder Fund Advisors Inc. ("Schroder Advisors"), under which Schroder
Advisors provides management and administrative services necessary for the
operation of the Fund, including: (1) preparation of shareholder reports and
communications; (2) regulatory compliance, such as reports to and filings with
the Securities and Exchange Commission ("SEC") and state securities commissions;
and (3) general supervision of the operation of the Fund, including coordination
of the services performed by its investment adviser, transfer agent, custodian,
independent accountants, legal counsel and others. Schroder Advisors is a wholly
owned subsidiary of Schro-der and is a registered broker-dealer organized to act
as administrator and distributor of mutual funds. The administration agreement
is terminable with respect to the Fund without penalty, at any time, by the
Trustees upon 60 days' written notice to Schroder Advisors or by Schroder
Advisors upon 60 days' written notice to the Trust. For its services, Schroder
Advisors receives no compensation. J.P. Morgan Investor Services Co.
26
SCHRODER NORTH AMERICAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004 (UNAUDITED)
("Morgan") serves as sub-administrator to the Fund and receives a fee from the
Fund for its services as follows: For Fund Administration services, Morgan will
be paid a monthly fee based on an annual rate of $24,000 plus 0.0035 of 1% of
the Fund's first $1 billion in average daily net assets, plus 0.0020 of 1% of
the Fund's average daily net assets in excess of $1 billion. For Fund Accounting
services, Morgan will be paid a monthly fee based on an annual rate of $30,000
plus 0.0040 of 1% of the Fund's first $1 billion in average daily net assets,
plus 0.0030 of 1% of the Fund's average daily net assets in excess of $1
billion.
NOTE 4 -- TRUSTEES' FEES:
The Fund pays no compensation to Trustees who are interested persons of the
Trust, SIMNA or Schroder Advisors. For their services as Trustees of all
open-end investment companies distributed by Schroder Advisors, Trustees who are
not interested persons of the Fund, Schroder, SIMNA Ltd. or Schroder Advisors
receive an annual retainer of $11,000 and $1,250 per meeting attended in person
or $500 per meeting attended by telephone. Members of an Audit Committee for one
or more of such Funds receive an additional $1,000 per year. Trustees' fees are
allocated among the various Funds. Payment of meeting fees will be allocated
only among those Funds to which the meeting relates.
NOTE 5 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities, for the period ended October 31, 2004 were $291,403,321
and $321,679,356, respectively.
Redemptions in-kind reflect the valuation of the underlying securities in
accordance with the Funds' valuation policy. The asset price used to effect the
redemption is the respective asset price used to calculate the net asset value
of the shares redeemed. For the period ended October 31, 2004 the Fund realized
gains from in-kind redemptions of $2,283,392.
NOTE 6 -- FEDERAL INCOME TAXES
It is the intention of the Fund to qualify as a "regulated investment company"
by complying with the requirements of Subchapter M of the Internal Revenue Code
of 1986, as amended. By so qualifying, the Fund would not be subject to Federal
income taxes to the extent that, among other things, it distributes
substantially all of its taxable income, including realized capital gains, for
the fiscal year. In addition, as a result of distributing substantially all of
its net investment income during each calendar year, capital gains and certain
other amounts, if any, the Fund 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 differences, which may result in
distribution reclassifications, are primarily due to differing treatments for
transactions in
27
SCHRODER NORTH AMERICAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
OCTOBER 31, 2004 (UNAUDITED)
certain futures and options, foreign currency transactions, non-taxable
dividends, investments in passive foreign investment companies, gains resulting
from distributions in-kind and losses deferred due to wash sales. The Fund may
also utilize earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
Distributions from short term gains and from gains on foreign currency
transactions are treated as distributions from ordinary income for tax purposes.
At October 31, 2004, the identified cost for Federal income tax purposes of
investments owned by the Fund and their respective gross unrealized appreciation
and depreciation were as follows:
NET UNREALIZED
IDENTIFIED GROSS GROSS APPRECIATION
TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
- ------------ ------------ -------------- --------------
$800,527,779 $ 70,315,234 $ 23,054,562 $ 47,260,672
NOTE 7 -- BENEFICIAL INTEREST
As of October 31, 2004, shareholders of the Fund with ownership of 5% or greater
included 3 shareholders, comprising ownership of 40.44% of the aggregate shares
outstanding.
PROXY VOTING: A description of the Fund's proxy voting policies and procedures
and information regarding how the Fund voted proxies related to portfolio
securities during the most recent 12-month period ended June 30 is available,
without charge, upon request, by visiting the SEC's website at http://
www.sec.gov, or by calling 1-800-464-3108 and requesting a copy of the Fund's
Statement of Additional Information.
FORM N-Q: The Fund files its schedule of portfolio holdings with the Commission
for the first and third quarters of each fiscal year on Form N-Q. The Fund's
Form N-Q is available on the Commission's website at http://www.sec.gov, and may
be reviewed and copied at the Commission'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.
DISCLOSURE OF FUND EXPENSES: We believe it is important for you to understand
the impact of fees regarding your investment. All mutual funds have operating
expenses. As a shareholder of the fund, you incur ongoing costs, which include
costs for portfolio management, administrative services, and shareholder reports
(like this one), among others. Operating expenses, which are deducted from a
fund's gross income, directly reduce the investment return of the fund. A fund's
expenses are expressed as a percentage of its average net assets. This figure is
known as the expense ratio. The following example is intended to help you
understand the ongoing costs (in dollars) on investing in your fund and to
compare these costs with those of
28
SCHRODER NORTH AMERICAN EQUITY FUND
other mutual funds. The example is based on an investment of $1,000 made at the
beginning of the period shown and held for the entire period.
The following table illustrates your fund's cost in two ways:
- - ACTUAL EXPENSES. This section of the table helps you to estimate the
actual expenses 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 divided by $1,000 = 8.6), then multiply the result by the
number given for the fund under the heading "Expenses Paid During the
Period."
- - 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 at which it in fact 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 which
are described in the Prospectus. If any such fees were applied to your account,
your costs would be higher.
EXPENSES PAID
BEGINNING ENDING NET DURING THE PERIOD*
ACCOUNT VALUE ACCOUNT VALUE ANNUALIZED MAY 1, 2004 --
MAY 1, 2004 OCTOBER 31, 2004 EXPENSE RATIOS OCTOBER 31, 2004
------------- ---------------- -------------- ------------------
Actual $ 1,000.00 $ 1,035.80 0.33% $ 1.69
Hypothetical
(5% average annual
return before expenses) 1,000.00 1,023.48 0.33 1.68
* Expenses are equal to the Fund's annualized expense ratio, multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period).
29
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 investment management 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 investment management companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
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 August 1, 2004 through October 31,
2004 that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
3
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(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.
(a)(3) Not applicable.
(b) Officer certifications as required by Section 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)), and Section 906 of the
Sarbanes Oxley Act of 2002, also accompany this filing as an Exhibit.
4
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.
SCHRODER GLOBAL SERIES TRUST
By: /s/ Mark A. Hemenetz
--------------------------------------------
Name: Mark A. Hemenetz
Title: Principal Executive Officer
Date: January 6, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Mark A. Hemenetz
--------------------------------------------
Name: Mark A. Hemenetz
Title: Principal Executive Officer
Date: January 6, 2005
By: /s/ Alan M. Mandel
--------------------------------------------
Name: Alan M. Mandel
Title: Principal Financial Officer
Date: January 6, 2005
5