UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSRS
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-21364
SCHRODER GLOBAL SERIES TRUST
(Exact name of registrant as specified in charter)
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875 Third Avenue, 22nd Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
Schroder Global Series Trust
P.O. Box 8507
Boston, MA 02266
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-464-3108
DATE OF FISCAL YEAR END: OCTOBER 31, 2009
DATE OF REPORTING PERIOD: APRIL 30, 2009
ITEM 1. REPORTS TO STOCKHOLDERS.
SCHRODER MUTUAL FUNDS
APRIL 30, 2009 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 Multi-Asset Growth Portfolio
(SCHRODERS LOGO)
SCHRODER MUTUAL FUNDS
June 9, 2009
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, 2009. 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.
The six months under review remained extremely volatile for investors. The
reporting period began on a very negative note with markets falling sharply
through November. Despite recovering some ground towards the end of November,
and trading sideways in December, the S&P 500 ended calendar year 2008 down
37.0%. The roller coaster ride for investors continued into 2009 as the S&P hit
its lowest closing level in 12 years on March 9, 2009. We witnessed a US economy
arguably in its worst condition since the Great Depression of the 1930s. The
problems have been broad-based and heavily reported, including the banking
crisis, massive job losses, and the collapse of the housing market and auto
industry. In the end, the US Government was forced to take unprecedented
monetary steps to ease the economic pain, including a $1 trillion stimulus
package, expansionary monetary policies, new programs to assist banks in
clearing bad debt off their balance sheets and partnering with Chrysler and
General Motors to keep those firms afloat.
Soon after entering office, President Obama announced a significant fiscal
stimulus package, removing any doubt that the US was, in fact, in a recession.
This was confirmed by the National Bureau of Economic Research, which pronounced
on December 1, 2008 that the US had been in recession since December 2007.
In response to this worsening data, central banks around the world were forced
to cut rates significantly in attempt to stimulate the economy. The Fed Funds
target rate started the period at 2.00% and ended in a "range" of 0-0.25%, its
lowest level in history.
In Europe, the economic environment continued to decline as it became clear that
the downturn in the world economy would be deeper than previously anticipated.
Central banks began cutting interest rates close to zero, announcing a series of
significant fiscal measures to support growth. Economic conditions deteriorated
further in the Eurozone, where manufacturing contracted at a record pace, retail
sales continued to fall, joblessness rose, and consumer and business confidence
dropped to record lows. The European Central Bank cut its key interest rate to
an historic low, and many countries expanded their national spending programs
similar to the US. Despite modest improvements posted in April, the economic
sentiment figures remain near record lows while key sectors continue to struggle
in the global economic downturn.
Asian regional economies, especially those dependent on exports, were under
pressure as global trade activity and manufacturing contracted sharply. Further
monetary and fiscal stimulus measures were announced to support economies and
prevent a sharp slowdown, again as seen throughout the global economy. However,
the latest economic data from leading economies in the region raised hopes of
stabilization. For example, data out of China in terms of manufacturing and
exports pointed to a mild recovery, aided by the government's stimulus efforts
emphasizing increased lending. China's trade surplus rebounded late in the
period, as export declines moderated and imports fell more than expected.
Our outlook for the remainder of 2009 is one of caution. We recently cut our
forecasts for global growth and expect global GDP to contract by 1.5% for the
rest of 2009, due to a sharper slowdown in both the Organization for Economic
Co-operation and Development and the emerging markets than we had previously
expected. Emerging markets are likely to be hit by the decline in trade, and we
expect them to experience a year of activity similar to that last seen during
the Asian crisis. However, we anticipate a modest global recovery in 2010 as
monetary and fiscal policy gains traction and as the banking system stabilizes.
However, there is still a great deal of uncertainty with regard to how and when
the latter will be achieved. We are also predicting a drop in inflation, helped
by lower commodity and energy prices. We believe that interest rates are likely
to stay at their current record low levels in the US, UK and Japan, falling
further in the Eurozone, and remaining so throughout 2010.
Although equities appear to offer value on several measures, we believe that a
sustained recovery in markets is still some way off. Clarity is needed on the
banking sector and the focus will be on the US Government's efforts to
recapitalize the banks. We also expect further write-offs and, while the market
will at some point look through this backdrop to recovery, right now there is
insufficient visibility as to when earnings will trough.
1
SCHRODER MUTUAL FUNDS
As we stated in the Funds' Annual Report, 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 or
regions. 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, 2009.
2
SCHRODER INTERNATIONAL ALPHA FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2009)
PERFORMANCE
In the six months ended April 30, 2009, the Schroder International Alpha Fund
(the "Fund") gained 1.31% (Investor Shares) and 1.32% (Advisor Shares) compared
to the Morgan Stanley Capital International EAFE Index (the "Index"), a
broad-based basket of international stocks, which fell 2.65%.
MARKET BACKGROUND
The modest decline in the Index masked what was another volatile period for
equity markets. Share prices fell sharply in the final quarter of 2008 and into
the next quarter, but staged a strong recovery in the final two months of the
period. Investors were faced with ongoing negative news on the one hand, but, on
the other hand, a few glimmers of hope that the worst might indeed be in the
past.
Economic data continued to deteriorate, especially on GDP growth, employment and
retail spending. The US, Europe and Japan experienced the most severe downturns,
while emerging markets also declined, but proved relatively resilient. Although
economic and, to some extent, corporate data continued deteriorating,
particularly in developed economies, the rate of decline seemed to slow
recently. Part of this improvement was on the back of companies reducing
inventories to meet weakened demand but also was a result of governments around
the world announcing sizable fiscal stimulus packages and easing monetary
policy, with interest rates in most developed economies now at record lows.
In equity markets, financial stocks underperformed over the period, but reached
a possible turning point in early March, as it became clear that US authorities
in particular would do whatever was necessary to support the banking system
without resorting to nationalization. This bolstered financial stocks around the
world, but the sector as a whole was not able to recover all the ground lost
earlier in the period.
In terms of overall sector performance, the relative improvement in data
mentioned above resulted in a notable shift in sentiment from early March
onward. Investors took this as a cue to rotate out of 'safe haven' defensive
areas, such as healthcare, utilities and consumer staples, into more cyclical
areas like the industrials, technology and consumer discretionary sectors.
Materials stocks, such as the mining sector, also rebounded as commodity prices
began to recover from the sharp falls in 2008, and this was the strongest
performing sector over the period.
PORTFOLIO REVIEW
From a regional perspective, our holdings in the Pacific ex Japan and emerging
markets contributed most to performance. Asian economies, in particular, have
been fairly resilient and have driven positive performance in stocks linked to
consumer and infrastructure spending, which has been boosted by fiscal stimuli,
especially that provided by the Chinese government. Examples include China-based
DENWAY MOTORS, luxury hotel group SHANGRI-LA, PING AN INSURANCE and DONGFANG
ELECTRIC, which supplies specialist components to the nuclear and wind energy
industries.
Climate change has remained in the public spotlight, and economic stimulus plans
announced recently in the US, Europe and China all include climate change
related initiatives. Companies involved in producing fuel efficient vehicles,
and particularly electric and hybrid powered ones, have been clear
beneficiaries. HONDA MOTOR was yet another of the Fund's strongly performing
consumer discretionary holdings. Consumer discretionary was one of the three
most significant contributors to overall Fund returns (the others being energy
and financials).
We were quite cautious on financials through most of the period, maintaining an
underweight allocation to the sector. This proved an advantageous strategy as a
number of banks continued to report problems with bad debt and needed to raise
further capital to shore up their balance sheets. The Fund was rewarded for not
holding many European banks. One of the few we held, CREDIT SUISSE, performed
relatively well, especially in comparison with other Switzerland banks. Most of
the Fund's exposure in financials has been focused on Asian companies, which
have stronger balance sheets and limited exposure to bad debts plaguing western
peers.
Another notable contributor to overall Fund returns was the energy sector. Oil
prices firmed following the incredible falls incurred since last May. Investors
are now looking through to a pick-up in activity in the latter half of 2009 and
beyond. This improved sentiment drove up shares in a number of the Fund's energy
sector holdings, including VENTURE PRODUCTION, NIKO RESOURCES and BG GROUP,
while the typically lower growth oil majors - which we do not hold -
underperformed.
3
SCHRODER INTERNATIONAL ALPHA FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 19, 2009)
Not every position worked as well as hoped for, however. CHINA UNICOM was forced
to write off some of its assets in the period due to the restructuring currently
taking place in the country's mobile phone networks. The anticipated regulatory
changes, which are a major driver for the stock, have been somewhat slow to
develop. The consumer staples sector was another source of disappointment.
Strong brand leaders such as UNILEVER and DANONE came under pressure as
investors feared that consumers would begin 'trading down' from higher priced
name brands to cheaper goods. We have seen limited evidence of any such trend so
far, and we maintain our confidence in these companies.
OUTLOOK
We believe the recent rally in equity markets has been driven by a sense that
the worst of the crisis is behind us and by high cash levels looking for a
re-entry point in the markets. Although we believe that progress has been made
in terms of dealing with the ongoing financial crisis globally and that the
steep degradation of macro economic news will level off, we are still relatively
cautious. We believe key long-term structural adjustments remain to unfold, and
end demand needs to show some sign of improvement to justify a market recovery.
We are likely to see markets remain volatile until there is sustained evidence
that demand has room to stabilize and resume. The current inventory cycle (after
the drastic moves from the last quarter of 2008) is now helping, but investors
need to be able to see an improvement beyond these adjustments. Key areas to
monitor include the US housing market, employment and credit conditions. We
still expect increases in company bankruptcies and unemployment, but on a more
positive note, there are signs that credit markets are improving and financing
is becoming easier for good quality companies to secure.
Three key long-term themes are likely to continue influencing not only the
global economy but also investment markets. One of these powerful trends is
global climate change, as mentioned earlier, while demographic shifts and the
'super cycle' will also play significant roles. Strong expected population
growth in emerging markets, with more people moving into the cities, will
necessitate greater spending on infrastructure. Demand for commodities should be
well supported as a result of this. Urbanization will also drive growth in other
key sectors, such as insurance and consumer discretionary.
Within the Fund, some of our most overweight positions currently are European
technology companies, consumer discretionary companies particularly in the
Pacific ex Japan, Canadian energy companies, and materials companies but with a
focus on those that should benefit from increased infrastructure spending
especially in emerging markets. At the same time, we remain underweight in
industrials and utilities as well as European and Japanese financials.
Overall, we continue to look for attractively priced quality growth companies,
focusing on those with globally competitive advantages. We define 'quality' in
terms of both a company's balance sheet and its management team. Companies that,
financially, are quite secure and have good access to credit should be sought
after in this environment, and highly experienced key personnel should help
their companies not only survive through the tough times but also ensure they
emerge as relative winners. We believe that investing in such companies should
continue to benefit the Fund.
4
SCHRODER INTERNATIONAL ALPHA FUND
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2009 April 30, 2009 (b) April 30, 2009 (b)
-------------- ------------------ ------------------
Schroder International Alpha Fund (a) --
Investor Shares ..................... (42.07)% 1.25% 0.08%
Advisor Shares ...................... (42.09)% 1.02%(c) (0.14)%(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
- --------- ----------------
Nestle 3.2%
Vodaphone Group 2.9
Credit Suisse 2.7
Nokia 2.4
BG Group 2.4
* Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
(PIE CHART)
% of Investments
----------------
Continental Europe 35.5%
Pacific ex-Japan 21.4
United Kingdom 18.7
Japan 11.7
Emerging Markets 6.6
North America 3.6
Short-Term Investment 2.5
5
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF JUNE 9, 2009)
PERFORMANCE
In the six months ended April 30, 2009, the Schroder International Diversified
Value Fund (the "Fund") gained 6.98% (Investor Shares) and 6.95% (Advisor
Shares) compared to the Morgan Stanley Capital International EAFE Index (the
"Index"), a broad-based basket of international stocks, which fell 2.65% during
this same period.
MARKET BACKGROUND
International equity markets remained volatile throughout the reporting period,
with the equity markets substantially lower in the beginning of the period, as
the acceleration of the credit crunch became increasingly noticeable on the
underlying economy and banks. Banks are under pressure to continue bolstering
their capital positions and have been looking to secure funding. Many major
financial institutions issued new shares, and some were rescued by governments
taking stakes in those companies. The sharp economic slowdown effectively curbed
inflationary pressures, leaving investors worried, instead, about mounting
evidence of a deep recession. Credit conditions remained tough, despite
aggressive interest rates cuts, and many firms cut costs by reducing activity
and/or headcount. Economic data generally has been weak but there are signs that
government efforts to alleviate the impact of the deleveraging of financial
systems are providing some support. In looking at different financial sectors,
materials and energy had the best returns supported by firmer oil and commodity
prices. Consumer discretionary also held up reasonably well, with investors
increasing exposure to cyclicality, apparently believing the worst of the crisis
is now behind us. Utilities were the weakest, followed closely by financials.
PORTFOLIO REVIEW
The International Diversified Value 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.
The Fund outperformed the Index during the reporting period. This outperformance
was well diversified with positive excess returns in eight of the ten global
sectors. The key contributors to performance came from the technology sector
with computers and peripherals (QUANTA COMPUTER) and electronic equipment (TDK)
adding value. The Fund had positive selection within the financials sector,
notably capital market stocks such as HENDERSON GROUP and CLOSE BROTHERS GROUP.
Exposure to electric utilities stocks and Japanese and continental European
telecommunications companies proved beneficial as did Japanese machinery and
auto-related exporters, which was mostly due to the decline in the value of the
yen. The Fund also benefited in relative terms from its low weight in the
consumer staples sector, particularly mega cap food products companies, as more
cyclical areas of the market began to outperform.
OUTLOOK
Recent market performance has been determined, to a large extent, by a
simplistic top-down cultural narrative; sectors traditionally viewed as being
defensive have outperformed, whereas financials and other cyclicals have been
largely shunned. Investors' prolonged preference for defensive sectors has
created opportunities among typically less well represented areas like
technology. As market sentiment has improved, albeit in a fragile and volatile
manner, this has started to reverse. We expect this to benefit more
discriminating bottom-up value investors.
6
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2009 Inception (a)
-------------- -------------
Schroder International Diversified Value Fund --
Investor Shares ............................. (40.58)% (11.00)%
Advisor Shares .............................. (40.69)% (11.22)%
(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
- --------- ----------------
CNP Assurances 0.5%
Schindler Holdings 0.5
Zurich Financial Services 0.5
Royal Dutch Shell, Class B 0.5
Man Group 0.5
* Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
(PIE CHART)
% of Investments
----------------
Continental Europe 41.1%
Pacific ex-Japan 15.1
Japan 13.1
Emerging Markets 9.7
United Kingdom 9.7
North America 9.6
Short-Term Investment 1.7
7
SCHRODER EMERGING MARKET EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 26, 2009)
PERFORMANCE
In the six months ending April 30, 2009, the Schroder Emerging Market Equity
Fund (the "Fund") rose 17.56% (Investor Shares) and 17.36% (Advisor Shares),
compared to the Morgan Stanley Capital International Emerging Markets Index (the
"Index"), a broad-based basket of international stocks, which rose 17.37% during
the same period.
MARKET BACKGROUND
Global emerging equity markets delivered strong returns, with these markets
experiencing a sharp rally in the latter part of the period as investor risk
appetite improved. Although ongoing uncertainties about the prospects for the
global economy and generally weak data weighed on sentiment for much of the
period, a number of developments in March and April led to an increase in
investor confidence. These included encouraging economic news in China and the
announcement of plans by the US Treasury to address the problem of toxic assets
in the banking sector. Further positives were the announcement from the G20
summit of an increase in the International Monetary Fund ("IMF") resources, a
number of upside surprises during the Q1 2009 earnings season and a slightly
more optimistic assessment of the global economy from the G7 and IMF (although
towards the end of the period news emerged of the outbreak of 'swine flu' in
Mexico and its spread to other countries).
The Indonesian market was the strongest performer, rallying sharply in the
latter part of the six-month period ended April 30, 2009, with positives
including receding external liquidity concerns, a relatively benign political
outlook following parliamentary elections and the central bank cutting interest
rates. The commodity-driven Peruvian market also outperformed, gaining from a
rally in copper prices in the latter part of the period, while the country's
central bank reduced interest rates. China, Brazil and Korea also outperformed.
The MSCI China Index benefited from interest rate cuts by the country's central
bank, while the Chinese authorities announced a significant fiscal package to
stimulate infrastructure and housing investment. Other positive developments
during the period included a sustained improvement in the Purchasing Managers
Index and an acceleration in loan growth. In Brazil, positives included strong
returns from local index heavyweights PETROLEO BRASILEIRO (energy) and CIA VALE
DO RIO DOCE (mining) and a reduction in interest rates by the country's central
bank. The Korean market was boosted by the strong performance of index
heavyweight SAMSUNG ELECTRONICS and a rally in the banking sector, while the
country's central bank reduced interest rates. Poland and Hungary were among the
weakest performing emerging markets. Concerns about the pace of economic
deterioration in these countries, given their close trading links with developed
Europe, and also about the level of external debt weighed on sentiment for much
of the period. However, these markets recovered some ground towards the end of
the period as investor risk appetite improved. The energy-dominated Russian
market underperformed, with oil prices falling very sharply in the early part of
the period (although it later trended upwards). In other developments, the
country's central bank reduced interest rates towards the end of the period.
Mexico also underperformed due to deteriorating economic data and its high
exposure to the US.
PORTFOLIO REVIEW
Fund performance was ahead of the benchmark index for Investor shares (and
broadly in line for Advisor shares) over the period. Overall both the Fund's
asset allocation policy and stock selection were beneficial. An underweight in
the underperforming Mexican market added value as did overweights in both the
Chinese and Indonesian markets, which outperformed. This was somewhat offset by
an overweight in the underperforming Russian market. The Fund's cash exposure
also had a negative impact, given the rise in markets over the period. Stock
selection in China (overweight CHINA NATIONAL BUILDING MATERIAL, PING AN
INSURANCE and DENWAY MOTORS), India (overweight RELIANCE INDUSTRIES, ICICI BANK
and MAHINDRA & MAHINDRA), Taiwan (overweight TAIWAN CEMENT and CHUNGHWA TELECOM)
and South Africa (overweight ANGLOGOLD) had a positive impact on performance,
outweighing the negative impact of stock selection in Korea (overweight KOREA
EXCHANGE BANK, SK TELECOM and LG TELECOM), Brazil (zero weight OGX and
overweight WEG) and Israel (overweight SHUFERSAL).
OUTLOOK
Economic activity, particularly in the US, Europe and Japan, is expected to be
very weak this year as banks remain unwilling to lend and consumer demand
continues to be lacklustre. This general deleveraging will likely result in
negative GDP growth in most developed markets this year. Moreover, any recovery
next year is likely to be modest. Given this scenario, GDP in the emerging world
will also slow, but remain 3%-4% above that of the developed economies. Although
recent data indicates that economic activity is no longer collapsing, it does
not signal that a meaningful recovery is around the corner. In fact, activity
continues to deteriorate, but at a slower rate. This improvement should not be
too surprising given the extent of the inventory reduction seen in recent
months.
8
SCHRODER EMERGING MARKET EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 26, 2009)
It is, however, likely that this pick-up in the inventory cycle will begin to
fade later this year and in our opinion the developed economies continue to face
substantial headwinds.
The level of uncertainty about the length and depth of the global economic
slowdown remains high, but, with recent data indicating that the global banking
system has probably been stabilised, investor sentiment has improved and markets
have seen a strong rally. Our base case is that economic activity in the US and
Europe will only begin to show signs of genuine improvement in early 2010. If
this outlook is correct, markets should begin to discount the recovery somewhat
earlier but in these regions the current rally may be premature. However this is
not necessarily true in emerging markets. We believe that economic fundamentals
for many emerging countries are much stronger than for the developed world and
there is more room for fiscal spending to be used to counteract any slowdown.
Debt levels in emerging markets are also generally modest and they are not
suffering from the deleveraging that continues to impact the developed
economies. We therefore expect the emerging economies to lead the global
recovery. Indeed, in China it is already clear that economic activity has
started to improve as government spending has turned consumer confidence upwards
and car and property sales have responded.
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2009 Inception (a)
-------------- -------------
Schroder Emerging Market Equity Fund --
Investor Shares .................... (40.62)% (1.72)%
Advisor Shares ..................... (40.81)% (1.97)%
(a) From commencement of Fund operations on March 31, 2006.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RETURNS FOR
CERTAIN PERIODS REFLECT FEE WAIVERS AND/OR REIMBURSEMENTS IN EFFECT FOR THAT
PERIOD; ABSENT FEE WAIVERS AND REIMBURSEMENTS, PERFORMANCE WOULD HAVE BEEN
LOWER. RESULTS REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS.
THE VALUE OF AN INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL
FLUCTUATE AND REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S
ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY* % OF INVESTMENTS
- --------- ----------------
OAO Gazprom ADR 3.1%
Petroleo Brasileiro ADR 3.0
Taiwan Semiconductor Manufacturing ADR 2.6
China Mobile 2.6
Reliance Industries GDR 2.2
* Excludes any Short-Term Investments.
GEOGRAPHIC ALLOCATION
(PIE CHART)
% of Investments
----------------
Asia/Far East 54.6%
Latin America 17.1
Europe 12.2
Africa 7.4
Mid-East 5.4
Short-Term Investment 3.3
9
SCHRODER U.S. OPPORTUNITIES FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF JUNE 10, 2009)
PERFORMANCE
In the six months ended April 30, 2009, the Schroder U.S. Opportunities Fund
(the "Fund") fell 2.41% (Investor Shares) and 2.48% (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 8.40%.
The Fund's outperformance of the Index was driven by strong stock selection. In
particular, stock picks in the consumer discretionary, financial services and
consumer staples sectors contributed the most to performance. Stock selection
detracted in only two sectors: health care and producer durables.
MARKET BACKGROUND
The US market declined significantly during the reporting period. News of the US
Government's initial economic recovery plans along with the flow of weak
economic data (unemployment, industrial production, home prices, consumer
confidence and GDP) caused the US small cap market to fall to levels not seen
since 2003. At the same time, headlines concerning the auto industry, AIG and
Merrill Lynch bailouts and bonuses and the failure of the financial sector in
general created a heightened state of uncertainty. Markets, however, rallied as
the government unveiled the Public-Private Investment Program ("PPIP") to clean
up toxic assets on US banks' balance sheets and a fiscal stimulus package.
PORTFOLIO REVIEW
The Fund outperformed the Index during the six months ending April 30, 2009 due
to significant stock selection in all sectors, except for health care and
producer durables.
Picks in consumer discretionary, financial services and consumer staples added
positively to Fund performance. Within the consumer sector, the Fund's positions
in the auto parts, foods and hotel/motels sectors contributed the most to
performance. From the financial services sector, holdings in EURONET WORLDWIDE
and stock picks from the real estate investment trust (REIT) industry added
strength.
At sector level, the Fund's underweight in financial services and overweight in
technology also had a positive impact on performance.
The main area of weakness came from stock selection in the health care and
producer durables sectors.
OUTLOOK
We believe the US equity market is likely to be volatile in the next couple of
months, as the economic downturn is expected to be longer in duration relative
to other recent recessions. However, given the magnitude of the sell-off we have
experienced (second only to the 1929-32 bear market in scale of decline), the
market is now selling at what we believe are attractive valuations.
From our perspective, in February the market reached the maximum point of
uncertainty - a lack of confidence in the ability of the US Government to manage
the crisis, a raft of very weak economic data and negative press. There has been
a significant rally after the US Treasury announced more concrete details of the
PPIP. While the plan is still a work in progress, it was a positive sign of
action which the US equity market had desperately been seeking and appears to
have stabilized the environment for the moment. While we do not expect the
market to go straight up from here, we believe we have probably seen signs of a
bottom.
We do not typically invest in themes within the Fund's portfolio, focusing
instead on identifying individual companies which have strong business models
and management teams and a durable competitive advantage. However, as valuations
have come down across the market, we believe there are compelling investment
opportunities in a number of areas.
An area of interest at the moment is the energy sector. We are re-visiting names
we have held in the past but sold last summer as stocks hit all-time highs and
valuations became excessive. On another note, we continue to apply an overriding
philosophy around our health care investments. We have been focusing on
companies which save the health care system money, reasoning that in an
environment of rising deficits, the system is increasingly likely to come under
pressure to reduce costs.
10
SCHRODER U.S. OPPORTUNITIES FUND
PERFORMANCE INFORMATION
One Year Ended Five Years Ended Ten Years Ended
April 30, 2009 April 30, 2009 (c) April 30, 2009 (c)
-------------- ------------------ ------------------
Schroder U.S. Opportunities Fund (a)(b) --
Investor Shares ....................... (27.00)% 3.31% 8.80%
Advisor Shares ........................ (27.19)% 3.07%(d) 8.54%(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
- --------- ----------------
Scientific Games Class A 2.5%
Reinsurance Group of America 2.3
Waste Connections 2.2
PSS World Medical 2.1
LKQ 1.8
* Excludes any Short-Term Investments.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ------ ----------------
Consumer Discretionary 18.6%
Financial Services 17.4
Technology 15.3
Health Care 13.3
Materials & Processing 7.5
Other Energy 4.7
Consumer Staples 4.2
Utilities 3.7
Producer Durables 3.3
Autos & Transportation 2.8
Short-Term Investment 9.2
11
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF JUNE 9, 2009)
PERFORMANCE
In the six months ended April 30, 2009, the Schroder U.S. Small and Mid Cap
Opportunities Fund (the "Fund") rose 0.63% (Investor Shares) and 0.51% (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
3.92%.
The Fund's outperformance of the Index was driven by both stock selection and
sector weights, which played an important role over the period. Stock picks in
the majority of sectors enhanced Fund performance, except for investments in the
consumer discretionary and financial services sectors, which detracted.
MARKET BACKGROUND
Overall, US small and mid cap stocks were in negative territory during the
six-month period under review. US equity markets declined significantly in
January and February. News of the US Government's initial economic recovery
plans along with the flow of weak economic data (unemployment, industrial
production, home prices, consumer confidence and GDP) caused the US small and
mid cap markets to fall to levels not seen since 2003. At the same time,
headlines concerning the auto industry, AIG and Merrill Lynch bonuses and the
failure of the financial sector in general led to a state of uncertainty.
Markets however rallied as the government unveiled the Public Private Investment
Program to clean up toxic assets on US banks' balance sheets.
PORTFOLIO REVIEW
During the six months under review, the Fund outperformed the Index. Both stock
selection (in producer durables, utilities and technology) and sector weights
played an important role over the period.
The Fund benefited by not owning any stocks in the air transportation industry
from the producer durables sector. In addition, holdings in utilities especially
in the electrical industry such as NV ENERGY and CONSTELLATION ENERGY performed
particularly well. Within the technology sector, the Fund's holdings in
MACROVISION SOLUTIONS contributed the most to performance.
At the sector level, the Fund's overweight in technology and underweight in
financial services contributed to performance. The Fund's average cash position
(9.95%) also had a positive impact on performance.
On the other hand, stock selection in consumer discretionary and financial
services detracted from Fund performance.
OUTLOOK
We believe the US equity market is likely to be volatile in the next couple of
months, as the economic downturn is expected to be longer in duration relative
to more recent recessions. However, given the magnitude of the sell off we have
experienced (second only to the 1929-32 bear market in scale of decline), the
market is now selling at attractive valuations.
From our perspective, in February the market reached the maximum point of
uncertainty - a lack of confidence in the ability of the US Government to manage
the crisis, a raft of very weak economic data and negative press in the media.
There has been a significant rally after the Treasury announced more concrete
details of the Public Private Investment Program. While the plan is still a work
in progress, it was a positive sign of action which the US equity market had
desperately been seeking and appears to have stabilized the environment for the
moment. While we do not expect the market to go straight up from here, we
believe we might have probably seen signs of a bottom.
Valuations have come down across the market and there are compelling investment
opportunities in a number of areas. We do not typically invest in themes within
the Fund, focusing instead on identifying individual companies which have strong
business models and management teams and a durable competitive advantage.
An area of interest at the moment is the energy sector. We are re-visiting names
we have held in the past but sold last summer as stocks hit all-time highs and
valuations became excessive. On another note, there has been an over-riding
philosophy around our health care investments for some time. We have been
focusing on companies which save the health care system money because, in an
environment of rising deficits, the system is increasingly likely to come under
pressure to reduce costs.
12
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2009 Inception (a)
-------------- -------------
Schroder U.S. Small and Mid Cap Opportunities Fund --
Investor Shares .................................. (26.72)% (4.92)%
Advisor Shares ................................... (26.93)% (5.16)%
(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
- --------- ----------------
Amdocs 3.5%
DaVita 3.3
Republic Service 3.0
Reinsurance Group of America 2.5
Scientific Games Class A 2.2
* Excludes any Short-Term Investments.
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ------ ----------------
Technology 18.7%
Consumer Discretionary 15.0
Financial Services 14.6
Health Care 13.1
Materials & Processing 9.9
Utilities 5.4
Other Energy 4.4
Producer Durables 3.0
Consumer Staples 2.0
Autos & Transportation 1.8
Short-Term Investment 12.1
13
SCHRODER NORTH AMERICAN EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF JUNE 9, 2009)
PERFORMANCE
In the six months ended April 30, 2009, the Schroder North American Equity Fund
(the "Fund") fell 8.27% (Investor Shares) and 8.31% (Advisor Shares). The FTSE
North American Index (the "Index"), a broad-based basket of North American
stocks, fell 7.32%. For the same six-month period, the S&P 500 Index fell by
8.53%.
MARKET BACKGROUND
North American equities fell during much of the early reporting period.
Financial conditions remained challenging despite ongoing efforts by the US
Government and Federal Reserve to support struggling institutions and encourage
lending. Economic data also added to the gloom, increasingly indicating that the
effects of the financial crisis on the real economy were becoming significant.
Sentiment began to pick up in response to aggressive interest rate cuts and
President Obama's significant fiscal package. Equity markets began to stabilize
in the final few weeks of the year, but the Index still recorded a loss of
nearly 23% in US dollar terms in the fourth quarter of 2008 and over 37% in 2008
as a whole.
Having had the chance to digest the detail of a multitude of government policy
responses, excessive pessimism gave way to an equity market rally towards the
end of the reporting period. The dispersion of sector returns was not as
defensive as it had been earlier in the period, suggesting a slight
strengthening of investors' appetite for riskier assets. The cyclical
technology, materials and consumer discretionary sectors outperformed more
defensive ones, particularly (but not exclusively) as markets began to rally.
PORTFOLIO REVIEW
The Fund's underperformance against the Index is largely attributable to its
exposure to small and mid cap US banks as excess pessimism towards financials
stocks resulted in indiscriminate weakness. The Fund's exposure to
pharmaceuticals also detracted from relative performance. Although the Fund is
slightly underweight in the health care sector, and pharmaceuticals in
particular, its holdings suffered amid concern over the potential impact of
President Obama's health care reform plans. Relative performance was strongest
within the consumer discretionary sector where the Fund was well positioned to
benefit from the rally among retailers (with holdings in stocks such as AUTOZONE
and BUCKLE) and its restaurant stocks outperformed (E.G., BRINKER
INTERNATIONAL). The Fund's underweighting of the industrials sector and
overweight position in telecoms also added value in the quarter.
OUTLOOK
Sentiment has strengthened in recent weeks, providing some stability to equity
markets. However, the process of restoring confidence can be a fragile one. The
Fund employs multiple investment strategies spread across a large number of
small stock positions with the intention to capture broad themes and limit
stock-specific risk, while top down risks (E.G., sector) are carefully managed.
The key features of the Fund's investment themes as of April 30, 2009 included:
- Increased exposure to smaller capitalization stocks, where we are
currently finding attractive investment opportunities.
- Maintained bias towards high quality insurance stocks within the
financials sector.
- Underweight utilities, with stocks in this sector still looking
expensive on a relative basis.
14
SCHRODER NORTH AMERICAN EQUITY FUND
PERFORMANCE INFORMATION
One Year Five Years Annualized
Ended Ended Since
April 30, 2009 April 30, 2009 (c) Inception
-------------- ------------------ ----------
Schroder North American Equity Fund --
Investor Shares ................... (34.10)% (1.79)%(a) 0.02%(a)
Advisor Shares .................... (34.32)% (2.11)%(b) (0.30)%(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.
(c) Average annual total return.
"TOTAL RETURN" IS CALCULATED INCLUDING REINVESTMENT OF ALL DIVIDENDS AND
DISTRIBUTIONS. RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. RESULTS
REPRESENT PAST PERFORMANCE AND DO NOT INDICATE FUTURE RESULTS. THE VALUE OF AN
INVESTMENT IN THE FUND AND THE RETURN ON INVESTMENT BOTH WILL FLUCTUATE AND
REDEMPTION PROCEEDS MAY BE HIGHER OR LOWER THAN AN INVESTOR'S ORIGINAL COST.
TOP 5 HOLDINGS
SECURITY* % OF INVESTMENTS
- --------- ----------------
Exxon Mobil 3.6%
Microsoft 1.8
International Business Machines 1.8
AT&T 1.7
Procter & Gamble 1.7
* Excludes any Short-Term Investments.
15
SCHRODER TOTAL RETURN FIXED INCOME FUND
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF JUNE 9, 2009)
PERFORMANCE
During the six months ended April 30, 2009, the Schroder Total Return Fixed
Income Fund (the "Fund") rose 8.26% (Investor Shares) and 8.23% (Advisor
Shares), compared to the Barclays U.S. Aggregate Bond Index (the "Index"), a
broad-based basket of U.S. debt securities, which rose 7.74%.
MARKET BACKGROUND
2009 remains a challenging year for investors. Economic data remains weak and
indicates only tentative signs of stabilization. Government intervention efforts
have accordingly accelerated. The most important stimulus/bank recapitalization
package during the reporting period was the Public-Private Investment Program
("PPIP") which innovatively combines both non-government monies and leverage to
purchase loan and securities from banks. This is another step in the right
direction to increase liquidity on bank balance sheets and equity markets
responded very positively, though it will take time for results to be clear.
Also, the Federal Reserve greatly enlarged its debt purchase program in order to
reduce consumer borrowing (mortgage refinance) costs, expanding targeted
mortgage backed security ("MBS") pass-through purchases from $500 to $1,250
billion and adding $100 billion in agency debentures and, importantly, $300
billion in US Treasury debt. The bond market's initial reaction was an immediate
decline of nearly half a percent across intermediate Treasury maturities, though
the impact was not lasting.
Notwithstanding the creative and aggressive Treasury and Federal Reserve plans,
corporate bond spreads widened and have given back most of the gains from a
rally that lasted from mid-December through mid-February. Financials led the
weakness. Mortgage spreads tightened 5-10 bps in response to enlarged Fed
purchases while commercial mortgage-backed securities rallied nearly 6 points in
anticipation of the PPIP stabilizing that market.
PORTFOLIO REVIEW
In the six months under consideration, the Fund outperformed the Index. Sector
strategy added to portfolio returns in January and February. Portfolio exposure
to Treasuries was cut to below that of the benchmark in December and we began
the year with an overweight to both agency-issued MBS and corporate bonds.
Further additions were made to corporates in January, though we retained a bias
for defensive industries and companies with stable cash flows. Overall corporate
exposure was reduced in late February in order to book profits after strong
performance. Throughout the quarter we added exposure in credit primarily
through new issues which were originated with large discounts to outstanding
bonds.
The Fund's overweight to mortgages was maintained throughout most of the
reporting period, with a reduction in exposure late in the period following
sharp spread tightening after the Fed's buying plans were announced. Yield curve
and duration strategies also contributed to returns.
OUTLOOK
The Fund is currently being invested with just a moderate amount of excess risk
relative to performance benchmarks. Duration and yield curve exposure is close
to neutral as both markets are likely to be confined to narrow ranges by Fed
policies. Sector allocation favors agency mortgage pass-throughs (mostly GNMA)
and corporate credit, and we retain our bias toward corporate sectors with
stable cash flows. We recognize that the risk premium for corporate bonds in
general is very attractive and that the move by many companies to reduce
leverage and improve credit ratios increases their appeal. However, we also see
sharp divergences continuing between credits within industries as economic
conditions take their toll on weaker issuers. As a result we are being
particularly cautious in which companies we extend credit to; our credit
analysts have identified many potential "fallen angel" downgrade candidates from
investment grade to high yield.
We expect more government stimulus programs for both the consumer and banking
system. Those announced in March reflect both the creativity and aggressiveness
required given the serious financial leverage they are seeking to offset and the
severity of the economic environment. These are positive steps in the right
direction, though they increase market uncertainty even as they seek to provide
support. We therefore expect market volatility to remain high. While we expect
investment grade corporate bonds can rally during the calendar quarter ending
June 30, we believe that during the following third calendar quarter there is
likely to be a period of increasing turbulence, with high yield defaults
increasing materially.
16
SCHRODER TOTAL RETURN FIXED INCOME FUND
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2009 Inception (a)
-------------- -------------
Schroder Total Return Fixed Income Fund --
Investor Shares ....................... 6.02% 4.94%
Advisor Shares ........................ 5.75% 4.66%
(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
- -------- ----------------
FNMA TBA, 6.500%, 06/25/39 6.2%
U.S. Treasury Note, 1.750%, 03/31/14 5.7
FNMA TBA, 5.000%, 11/01/35 5.7
FNMA TBA, 4.500%, 06/25/39 5.6
FNMA TBA, 5.500%, 10/01/35 5.1
SECTOR ALLOCATION
SECTOR % OF INVESTMENTS
- ------ ----------------
US Government Mortgage-Backed
Obligations 46.8%
Corporate Obligations 24.5
US Treasury Obligations 10.6
US Government Agency Obligations 5.5
Commercial Mortgage-Backed Obligations 1.5
Collateralized Mortgage Obligations 0.1
Asset-Backed Securities 0.0*
Short-Term Investment 11.0
* Represents less than 0.1% of total investments.
17
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 27, 2009)
PERFORMANCE
In the six months ended April 30, 2009, the Schroder Multi-Asset Growth
Portfolio (the "Fund") fell 1.33% (Investor Shares), 1.52% (Advisor Shares),
1,48% (Class A Shares) and 1.55% (Class R Shares), compared to the Consumer
Price Index ("CPI" or the "Index", specifically, the CPI for All Urban
Consumers) which fell 1.54%. For the same period, the MSCI World Index, a
market-weighted index designed to measure the equity market performance of
developed markets, declined by 5.44%.
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 the MSCI World Index and the S&P 500 Index, which
declined 8.53% during the period from October 31, 2008 to April 30, 2009. The
Fund also maintained significantly lower volatility than an equity portfolio, as
annualized volatility from inception to April 30, 2009 was 10.34% versus 18.81%
for the MSCI World Index and 22.38% for the S&P 500 Index. While the Fund has a
real return target and we examine performance against a benchmark of inflation
plus 5%, we have also compared the Fund against the MSCI World Index and have
highlighted our objective of delivering returns comparable to equities but with
less volatility.
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.
MARKET BACKGROUND
April saw a turning point in the year with three major events; the G20 meeting,
banks reporting first quarter results, which was stronger than expected and the
US bank stress tests. Over the period, the major central banks reduced interest
rates to close to zero and announced a series of significant fiscal measures to
support growth. We have sliced our forecasts for global growth and expect
worldwide GDP to contract by 1.5% in 2009, due to a sharper slowdown in both the
OECD and the emerging markets than we had previously expected. Towards the end
of the first quarter there was renewed optimism as the US Federal Reserve
announced it would follow the Bank of England in beginning a period of
quantitative easing. At the beginning of April equity markets enjoyed a sharp
bounce from the lows of the year with emerging markets leading the way.
Government bond yields ticked up and risk appetite improved. Economic data has
been improving, or at least the rate of decline has substantially slowed.
However, we believe the housing correction is far from over. The US banking
stress tests have produced surprising results. Initial reports have shown that
19 of the US big banks had passed the tests being carried out by the
administration to determine their future capital needs. For example, the IMF now
estimates total losses will peak at $4.1 trillion while Bloomberg records only
$1.3 trillion as written off. Not all of the IMF estimate is attributable to US
institutions, with some $1.2 trillion owned by European banks. Nonetheless, the
IMF figures imply that US banks need between $275 and $500bn of equity. This
seems at odds with statements from Treasury Secretary Geithner that the vast
majority of US banks are well capitalised. At the time of writing reports
suggest that at least six of the 19 require more capital, indicating further
turbulence could develop in the markets following the public release of the
stress test results. Details around the regulatory metrics for the stress tests
were published on April 24th with many economists suggesting the economic
scenarios being used were not nearly "stressful" enough. The green shoots of
recovery are appearing and could continue to develop through the summer as the
benefits of fiscal and monetary policy are felt.
PORTFOLIO REVIEW
Over the period we maintained our exposure to equities. Our efforts lay in
adding regional value, as opposed to trying to tactically take advantage of
changes in equity markets, which in a bear market environment can be susceptible
to sharp rallies, as well as falls. We reduced the Fund's weighting towards
Europe, a region which we believe will continue to be plagued by a mixture of
currency strength and financial sector weakness. In contrast we increased the
Fund's weighting towards the UK, encouraged by protracted currency weakness
which should make exports more competitive, hence helping the profitability of
local firms.
We increased the Fund's exposure to high yield debt, which we believe should
benefit the Fund in the near future given the anticipated contraction in
spreads. The Fund's exposure to emerging market debt ("EMD") has been increased
in accordance with our belief that EMD is well positioned to benefit from the
elevated spreads seen in the dollar-denominated sector of the market for these
bonds. With our economists expecting -1.5% global growth for 2009, asset classes
such as commodities are going to require some signs of stabilization in leading
economic indicators to present, once again, a significant opportunity. We do
expect 2009 to provide
18
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 27, 2009)
us with an opportunity to pick up cheap commodity exposure, and we increased the
Fund's exposure to Treasury Inflation Protected Securities ("TIPS"). With the
market pricing in sustained deflation, TIPS sold off, but with large scale money
supply growth, we expect that inflation will return faster than current market
prices reflect.
Given the unsettled economic environment, we have continued to hold our overall
defensive approach but have made some moderate changes to the Fund's portfolio
over the period. As in previous months, we have focused on investments that we
expect to deliver long-term value but have also implemented some shorter-term
tactical positions. Total equity exposure was reduced over the period finishing
at approximately 37% of the Fund's net assets as of April 30, 2009. We have made
more significant adjustments to our regional equity exposures, with the largest
increase being to over-weighting UK equities. We have become increasingly
negative on Europe due to its dependence on exports which are currently hampered
by the relative strength of the euro, and the slow reactions of the European
Central Bank. Although risk appetite did not increase as expected, emerging
market performance held up relatively well throughout the period. Currency
weakness across countries in the Asia Pacific region has led to increased
competitiveness of many companies in these markets. As a result, we increased
exposure to Pacific ex Japan equities. Given the low growth environment, we
believe it makes sense to prefer markets which can potentially benefit from a
boost to competitiveness from currency weakness. During the fourth quarter of
last year we built a significant allocation to investment grade credit on
valuation grounds. We have added European (German Bund futures) and UK (UK Gilt
futures) duration to the fixed income portfolio as we feel yields have further
to fall. In the UK the government continues to buy government bonds with
somewhat of an insensitivity to price due to their desire to pursue quantitative
easing monetary policies. In the case of Europe, we believe the bonds are
over-priced and, given a deteriorating economic outlook, should fall in value.
We've also added to our TIPS position to take advantage of the market pricing in
deflation/very mild inflation which we think is excessively pessimistic in the
medium term.
Elsewhere in the Fund, exposure to emerging market debt was marginally
increased. High yield debt also continues to offer opportunities with spreads
still at historically wide levels and, as such, exposure was gradually increased
to approximately 11% by the end of the reporting period. Our global equity
investments were able to add value above their respective benchmarks. Our fixed
income investments generated positive performance. Our EMD and high yield
investments also provided positive results.
OUTLOOK
The speed and magnitude of the current rally increases the likelihood of a
consolidation in the short term. The fact that it has occurred without any signs
of improvement in final demand, as well as against a continued weak earnings
outlook (despite some positive surprises), keeps us cautious on equities. That
said, we still like Pacific ex Japan equities given the region's relatively
strong structural fundamentals and are funding an overweight position out of the
US. Against a backdrop of subdued global growth and low inflation, policy rates
are likely to stay at their current record low levels in the major economies for
a considerable period. We see little prospect of any tightening this year as
central banks will need strong evidence of recovery to be certain of not pushing
the economy back into recession.
Although the current rally may still have some legs, we believe that it is
likely to disappoint in the absence of any improvement in final demand or
meaningful turn in corporate earnings. Markets have recovered from a heavily
oversold position to reflect the view that the likelihood of another Great
Depression has fallen. However, whilst policymakers may have succeeded in
reducing the tail risk for the world economy, we expect economies to struggle in
the face of the headwind from de-leveraging.
Property: Our outlook remains negative given the continuing lack of financing
for transactions. In the UK, property securities that managed to renew bank
financing are now burdened with higher financing costs and terms that are more
stringent. More positively, there may be an incentive for banks to raise or not
enforce the loan-to-value covenants in the financing contracts, provided loan
interest payments are made, as banks would prefer to avoid repossessing assets
that could only be liquidated at fire-sale prices. In 2008, property yields in
continental Europe rose an average of 100 bps. This upward trend in yields is
expected to continue given the deterioration in the economic outlook for the
region and lack of liquidity in the credit markets.
Private Equity: Investments have been hit hard by the current economic crisis.
The combination of collapsing equity valuations and a poor earnings outlook
means leveraged deals may have the value of equity significantly written down
through 2009. We believe there will be a number of restructurings to de-leverage
companies, leading to a rise in prominence of specialist funds buying distressed
companies. Those funds that have cash to invest should be well-positioned to
find attractive opportunities across a range
19
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
MANAGEMENT DISCUSSION AND ANALYSIS (AS OF MAY 27, 2009)
of companies in need of capital. Conversely, managers looking for debt to
finance acquisitions may find it increasingly hard to come by and that is likely
to remain the case.
Commodities: Developments on the global macro front (E.G., quantitative easing,
demand for real assets) will likely provide a more balanced supply/demand
environment for commodities. After the steep sell off in risk assets, prices in
sectors where supply has contracted may rebound in coming months. Base metals in
particular are well placed to benefit from the effects of the current round of
global macro policies. Overall, we believe supportive supply-demand dynamics
provide a basis for market to trade higher during the remainder of the year.
High Yield: High yield bonds continue to look attractive on valuation grounds
given that although spreads have been narrowing, they remain close to
historically high levels. According to our high yield fair value model, the
market continues to look extremely cheap. While there is the risk that high
yield could suffer over the short-term, with the prospect of a pick up in the
default rate, it could be argued that most of this has already been discounted
by the markets. However, the default rate for US speculative grade debt of 5.2%
has yet to reach levels seen in previous recession episodes.
Investment Grade: Investment grade debt continues to offer attractive yields
with spreads close to historically wide levels relative to conventional bonds.
We are finding it difficult to picture an environment where government bonds
will rally, given that yields are still low by historic standards and since
quantitative easing has, so far, also failed to have the impact we had expected.
PERFORMANCE INFORMATION
One Year Annualized
Ended Since
April 30, 2009 Inception (a)
-------------- -------------
Schroder Multi-Asset Growth Portfolio --
Investor Shares ..................... (31.45)% (23.70)%
A Shares ............................ (31.58) (23.86)
Advisor Shares ...................... (31.61) (23.88)
R Shares ............................ (31.83) (24.07)
(a) From commencement of Fund operations on December 20, 2007.
"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 21.0%
iShares iBoxx Investment Grade Corporate Bond Fund 15.8
Goldman Sachs High Yield Fund 11.6
Schroder International Diversified Value Fund 6.1
PIMCO Emerging Markets Bond Fund 6.0
20
SCHRODER INTERNATIONAL ALPHA FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
COMMON STOCK - 95.4%
AUSTRALIA - 2.2%
80,824 Orica 986,339
------------
BRAZIL - 1.1%
37,679 Redecard 474,931
------------
CANADA - 3.6%
16,056 Niko Resources 812,691
31,306 Suncor Energy 787,964
------------
1,600,655
CHINA - 5.6%
356,000 Dongfang Electric Class H (1) 937,144
1,558,000 Industrial & Commercial Bank of China Class H 896,662
107,500 Ping An Insurance Group of China Class H 672,785
------------
2,506,591
FINLAND - 2.4%
75,576 Nokia 1,092,364
------------
FRANCE - 6.3%
37,727 AXA 635,851
19,260 GDF Suez 695,316
16,412 Groupe Danone 784,247
16,706 Ipsen 686,621
------------
2,802,035
GERMANY - 9.2%
18,805 Bayerische Motoren Werke 652,779
6,783 Deutsche Boerse 502,312
26,207 E.ON 888,584
26,197 SAP 1,005,512
49,463 ThyssenKrupp 1,062,257
------------
4,111,444
HONG KONG - 11.2%
702,000 China Unicom Hong Kong 803,502
1,658,000 Denway Motors 699,614
131,000 Esprit Holdings 808,872
544,000 Shangri-La Asia 804,470
90,000 Sun Hung Kai Properties 937,802
119,500 Swire Pacific Class A 938,328
------------
4,992,588
ISRAEL - 3.6%
171,838 Makhteshim-Agan Industries 766,433
19,630 Teva Pharmaceutical Industries ADR 861,561
------------
1,627,994
ITALY - 1.9%
263,733 Intesa Sanpaolo 850,105
------------
JAPAN - 11.7%
28,000 Canon 837,643
23,500 Honda Motor 677,999
Shares Value $
- ---------- ------------
145 KDDI 649,934
50,700 Mitsubishi 776,362
141,200 Nomura Holdings 843,391
12,300 Unicharm 856,921
46,000 Ushio 595,700
------------
5,237,950
LUXEMBOURG - 2.2%
41,985 ArcelorMittal 999,378
------------
NETHERLANDS - 1.8%
40,755 Unilever 809,764
------------
SINGAPORE - 2.4%
90,784 Jardine Strategic Holdings 1,071,251
------------
SWITZERLAND - 11.6%
30,612 Credit Suisse Group 1,196,473
44,163 Nestle 1,445,912
24,009 Novartis 913,146
8,211 Roche Holding 1,039,777
3,078 Zurich Financial Services 577,782
------------
5,173,090
UNITED KINGDOM - 18.6%
64,129 Admiral Group 863,534
66,576 BG Group 1,075,584
30,403 Cairn Energy (1) 963,042
145,585 Rexam 681,078
22,640 Rio Tinto 928,302
292,276 Sage Group 801,390
172,173 Tesco 858,142
698,032 Vodafone Group 1,286,614
127,095 WPP 876,368
------------
8,334,054
------------
TOTAL COMMON STOCK
(Cost $48,417,493) 42,670,533
------------
EQUITY-LINKED
WARRANT (2)(3) - 1.9%
INDIA - 1.9%
190,442 Shriram Transport Finance
Expires 01/18/13
(Cost $1,418,653) 837,945
------------
SHORT-TERM INVESTMENT (4) - 2.5%
1,136,403 JPMorgan U.S. Government Money
Market Fund, 0.270%
(Cost $1,136,403) 1,136,403
------------
TOTAL INVESTMENTS - 99.8%
(Cost $50,972,549) 44,644,881
------------
The accompanying notes are an integral part of the financial statements.
21
SCHRODER INTERNATIONAL ALPHA FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Value $
------------
OTHER ASSETS LESS LIABILITIES - 0.2% 102,466
------------
NET ASSETS - 100.0% $ 44,747,347
============
(1) Denotes non-income producing security.
(2) Securities are not readily marketable.
(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, 2009, the value of this
security amounted to $837,945, representing 1.9% of the net assets of the
Fund.
(4) The rate shown represents the 7-day current yield as of April 30, 2009.
ADR - American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
22
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
COMMON STOCK - 97.5%
AUSTRALIA - 4.1%
39,418 Abacus Property Group REIT 9,019
6,960 Aditya Birla Minerals 1,820
7,417 Aspen Group REIT 2,101
8,402 BlueScope Steel 14,282
10,757 Centro Retail Group REIT 344
14,362 Commonwealth Property Office Fund REIT 8,503
11,208 GPT Group REIT 3,826
8,170 Incitec Pivot 12,522
18,014 ING Industrial Fund REIT 2,224
19,856 ING Office Fund REIT 6,274
798 Lend Lease 4,185
3,862 Macquarie Airports Management 5,078
32,610 Macquarie CountryWide Trust REIT 7,462
774 Macquarie Group (1)(2) 18,716
25,045 Macquarie Office Trust REIT 3,548
2,959 McPherson's 2,407
5,471 Metcash 16,532
5,945 Mirvac Group REIT 4,513
4,452 Mirvac REIT 1,229
1,340 National Australia Bank 20,081
6,333 Nomad Building Solutions 2,346
11,656 Pacific Brands 5,927
6,188 Platinum Asset Management 18,205
15,922 Qantas Airways 22,900
10,664 Rubicon America Trust REIT (1)(2)(3) --
1,026 Sims Group 14,906
273 Stockland (3) 575
5,754 Stockland REIT 13,124
6,150 Suncorp-Metway 26,357
13,158 Telstra 31,828
960 Wesfarmers 15,788
876 Westfield Group REIT 6,828
------------
303,450
AUSTRIA - 2.1%
309 Austria Technologie & Systemtechnik 1,410
1,040 Erste Group Bank 22,005
769 OMV 24,132
578 Raiffeisen International Bank Holding 20,248
2,101 Telekom Austria 27,811
717 Verbund - Oesterreichische Elektrizitaetswirtschafts 29,677
1,286 Voestalpine 24,914
514 Wienerberger 6,117
------------
156,314
BELGIUM - 1.4%
931 Belgacom 27,190
551 Econocom Group 4,372
340 Euronav 4,946
2,067 Fortis 5,139
136 Intervest Offices REIT 3,507
Shares Value $
- ---------- ------------
1,477 KBC Ancora 22,657
341 Mobistar 20,482
321 Tessenderlo Chemie 9,593
66 Wereldhave Belgium REIT 4,451
------------
102,337
BERMUDA - 0.6%
5,548 Catlin Group 28,866
800 Frontline 16,085
------------
44,951
BRAZIL - 2.0%
2,600 Banco do Brasil 22,304
400 Cia de Transmissao de Energia Eletrica Paulista 8,601
1,600 Cia Energetica de Minas Gerais ADR 24,080
500 Cia Paranaense de Energia ADR 6,270
400 CPFL Energia 6,076
2,200 Gerdau ADR 15,620
1,200 Light 13,078
1,400 Tele Norte Leste Participacoes ADR 21,770
1,400 Telecomunicacoes de Sao Paulo ADR 30,366
------------
148,165
BRITISH VIRGIN ISLANDS - 0.0%
5,357 Livermore Investments Group 1,307
------------
CANADA - 9.0%
1,400 AGF Management Class B 13,494
1,600 Alimentation Couche Tard Class B 17,501
900 AltaGas Income Trust 11,127
2,100 ARC Energy Trust 27,282
800 Atco Class I 23,032
700 Bank of Montreal 23,175
400 Bank of Nova Scotia 11,379
981 Baytex Energy Trust 13,665
300 Baytex Energy Trust 4,149
1,400 Bonavista Energy Trust 21,239
700 Canadian Oil Sands Trust 14,457
1,000 Canadian Utilities Class A 28,916
300 Canadian Utilities Class B 8,750
600 Empire Class A 25,064
1,100 Enerflex Systems Income Fund 9,330
682 Enerplus Resources Fund 12,876
340 Enerplus Resources Fund (Canada) 6,486
1,200 Freehold Royalty Trust 11,778
1,442 GAZ Metro LP 17,380
600 George Weston 29,786
1,600 Great-West Lifeco 27,478
1,200 Husky Energy 29,077
1,000 InnVest REIT 3,101
600 Major Drilling Group International 6,804
600 Manitoba Telecom Services 16,847
2,000 NAL Oil & Gas Trust 14,752
1,500 Northland Power Income Fund 11,944
1,300 Pengrowth Energy Trust 8,444
The accompanying notes are an integral part of the financial statements.
23
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
1,600 Penn West Energy Trust 17,554
1,200 Power Corp. of Canada 22,439
1,100 Power Financial 22,007
2,600 Provident Energy Trust 11,397
1,300 Reitmans Canada Class A 13,239
1,800 Teck Cominco (United States) Class B 18,972
1,100 TELUS 26,875
700 Toronto-Dominion Bank 27,634
1,600 Total Energy Services Trust 5,472
1,400 TransForce 5,386
2,000 Trilogy Energy Trust 9,753
1,200 Trinidad Drilling 4,848
700 Vermilion Energy Trust 15,841
300 Wajax Income Fund 3,930
2,300 Yellow Pages Income Fund 10,950
------------
665,610
CHILE - 0.2%
39,222 Enersis 11,736
------------
CHINA - 2.6%
59,000 Bank of China 22,079
27,000 Bank of Communications 21,985
7,900 Bengang Steel Plates 3,007
11,000 China Citic Bank 5,067
9,500 China COSCO Holdings Class H 7,833
21,000 China Molybdenum 10,677
12,000 China Shineway Pharmaceutical Group 7,340
30,000 China Telecom Class H 14,904
14,000 Datang International Power Generation 6,793
15,000 Industrial & Commercial Bank of China Class H 8,633
10,000 Jiangxi Copper Class H 11,898
3,000 Lianhua Supermarket Holdings 3,569
24,000 People's Food Holdings 8,026
24,000 PetroChina Class H 21,245
8,700 Shandong Chenming Paper Holdings 4,289
40,500 Sinotrans Shipping 12,647
4,500 Weiqiao Textile Class H 1,800
10,000 Yanzhou Coal Mining 9,459
10,000 Zhejiang Expressway 8,607
------------
189,858
CZECH REPUBLIC - 0.5%
83 Komercni Banka 11,252
1,215 Telefonica O2 Czech Republic 26,209
------------
37,461
DENMARK - 0.3%
150 Amagerbanken 1,236
582 D/S Nordern 19,844
------------
21,080
Shares Value $
- ---------- ------------
FINLAND - 2.8%
1,726 Elisa 23,007
809 Kesko Class B Shares 21,204
978 Konecranes 20,111
906 Metso (3) 14,042
1,706 Neste Oil 22,267
1,543 Orion 22,445
1,242 PKC Group 5,929
1,295 Rautaruukki 24,352
667 Sampo 12,552
875 Wartsila 29,205
962 YIT 9,261
------------
204,375
FRANCE - 8.1%
1,300 Air France-KLM 14,564
1,609 AXA 27,118
588 Bouygues 25,287
714 Carrefour 29,166
202 Cegid Group 2,725
550 Cie de Saint-Gobain 19,947
243 Ciments Francais 22,173
462 CNP Assurances 36,590
138 Compagnie Plastic-Omnium 1,706
607 Credit Agricole 8,990
26 Credit Industriel et Commercial 4,178
201 Esso Ste Anonyme Francaise 21,557
74 Fonciere Des Regions REIT 4,076
1,183 France Telecom 26,391
374 Gecina REIT 20,614
844 Generale de Sante 14,721
394 Lafarge 22,519
180 Lafarge (3) 9,640
182 LISI 6,980
6,515 Natixis 14,982
323 Nexity 10,546
479 Peugeot 11,180
130 Pierre & Vacances 8,351
246 PPR 19,014
280 Rallye 5,750
1,864 Rexel 15,569
505 Sanofi-Aventis 29,230
331 Schneider Electric 25,348
1,353 SCOR 28,574
126 Societe de la Tour Eiffel REIT 4,111
169 Ste Industrielle d'Aviation Latecoere 945
544 Total 27,585
39 Total Gabon 12,378
481 Valeo 9,996
228 Vallourec 25,143
824 Vivendi 22,305
243 Wendel 9,012
------------
598,961
The accompanying notes are an integral part of the financial statements.
24
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
GERMANY - 4.1%
36 Allianz 3,320
48 Allianz (France) 4,461
730 BASF 27,580
300 Bechtle 4,527
61 Boewe Systec 356
612 Commerzbank 4,176
447 Demag Cranes 9,399
1,067 Deutsche Lufthansa 13,637
2,063 Deutsche Telekom 24,935
174 EnBW Energie Baden-Wuerttemberg 8,300
288 Generali Deutschland Holding 23,613
452 HeidelbergCement 19,067
455 Indus Holding 6,468
285 Koenig & Bauer 3,053
380 Metro 16,181
224 Muenchener Rueckversicherungs 30,993
573 Norddeutsche Affinerie 16,253
257 RWE 18,553
297 Salzgitter 21,185
125 Schlott Gruppe 992
256 Sixt 3,998
1,197 SQS Software Quality Systems 4,229
691 ThyssenKrupp 14,840
493 Wincor Nixdorf 24,774
------------
304,890
GREECE - 1.1%
147 Bank of Greece 8,413
1,114 Hellenic Exchanges Holding Clearing Settlement and
Registry 9,811
1,767 Hellenic Petroleum 17,222
1,878 Hellenic Telecommunications Organization 28,808
992 Motor Oil Hellas Corinth Refineries 10,534
2,596 Proton Bank 3,330
------------
78,118
GUERNSEY - 0.0%
3,969 IRP Property Investments Limited 3,373
------------
HONG KONG - 3.7%
11,500 BOC Hong Kong Holdings 16,413
28,000 Champion REIT 6,467
66,822 Champion Technology Holdings 2,199
4,000 Chow Sang Sang Holding 2,416
30,000 Cnpc Hong Kong 15,020
9,000 Great Eagle Holdings 12,519
7,000 Hongkong Land Holdings 17,500
30,000 Hung Hing Printing Group 4,452
3,000 Hutchison Whampoa 17,808
5,000 Hysan Development 9,136
8,500 Kingboard Chemical Holdings 20,840
15,000 Kowloon Development 7,259
Shares Value $
- ---------- ------------
72,000 Lenovo Group 19,790
22,000 Lerado Group Holdings 1,590
28,000 Norstar Founders Group (1)(2) --
5,500 Orient Overseas International 15,933
58,000 Pacific Andes International Holdings 6,137
11,000 Pacific Basin Shipping 5,522
2,781 Prosperity Minerals Holdings 1,932
18,000 Public Financial Holdings 6,318
24,000 Silver Grant International 3,004
30,000 SIM Technology Group 2,400
48,000 Sinolink Worldwide Holdings 4,026
21,000 Sunlight REIT 3,550
3,000 Swire Pacific Class A 23,556
9,000 TAI Cheung Holdings 3,414
7,200 Transport International Holdings 19,511
27,000 Victory City International Holdings 1,812
4,000 VTech Holdings 20,130
16,000 Xiwang Sugar Holdings 2,457
------------
273,111
HUNGARY - 0.1%
231 MOL Hungarian Oil & Gas 11,148
------------
INDONESIA - 0.1%
65,000 Aneka Tambang 8,794
------------
IRELAND - 0.6%
5,409 Allied Irish Banks 6,866
3,548 Anglo Irish Bank (1)(2) --
2,733 C&C Group 6,361
1,582 DCC 28,638
1,959 Irish Life & Permanent 5,000
------------
46,865
ISRAEL - 0.9%
15,580 Bezeq Israeli Telecommunication 24,612
1,094 Cellcom Israel 24,994
1,213 Partner Communications 20,256
------------
69,862
ITALY - 5.2%
582 Banca Intermobiliare 2,159
15,636 Banca Monte dei Paschi di Siena 25,267
1,765 Banca Popolare dell'Emilia Romagna 21,590
291 Banco di Sardegna 4,068
1,667 Banco Popolare 11,088
1,551 Buzzi Unicem 22,972
2,182 Caltagirone 7,646
1,884 Cementir Holding 6,858
5,016 Enel 27,412
1,487 ENI 32,347
1,475 ERG 22,938
1,078 Fondiaria-Sai 18,076
802 Indesit 4,051
7,162 Intek 3,627
The accompanying notes are an integral part of the financial statements.
25
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
2,366 Intesa Sanpaolo 7,626
1,689 Italcementi 20,560
204 Italmobiliare 7,794
3,269 KME Group 2,825
1,668 Maire Tecnimont 3,439
1,425 Mediaset 8,061
2,381 Milano Assicurazioni 7,352
1,256 Piccolo Credito Valtellinese Scarl 9,891
3,897 Recordati 22,559
9,025 Saras 26,614
2,457 Sogefi (3) 3,516
19,714 Telecom Italia 25,105
935 Unione di Banche Italiane 12,983
13,810 Unipol Gruppo Finanziario 17,340
------------
385,764
JAPAN - 13.1%
2,300 ADEKA 14,578
1,300 Aichi 5,221
1,500 Aisin Seiki 30,575
900 Astellas Pharma 29,297
700 Belluna 2,179
2,600 Brother Industries 21,014
1,000 Canon Electronics 11,368
4 Creed Office Investment REIT 3,756
3 DA Office Investment REIT 5,303
1,000 Daifuku 5,963
2,000 Daiichi Jitsugyo 4,827
400 Daiichikosho 3,205
9,000 DIC 14,694
500 Excel 4,067
600 Fuji 1,698
600 Fuji Electronics 4,235
600 Fuji Machine Manufacturing 5,385
1,200 Fujikura Rubber 3,626
2,000 Furukawa-Sky Aluminum 3,367
600 Furusato Industries 4,290
2 Grandy House 487
1,000 Hitachi High-Technologies 13,954
200 Hitachi Systems & Services 2,079
5,000 Isuzu Motors 8,265
5 ITC Networks 7,677
4,000 ITOCHU 21,337
1,300 Itoki 3,322
3 Japan Hotel and Resort REIT 4,104
5 Japan Prime Realty Investment Class A 8,594
3 Japan Retail Fund Investment REIT 10,526
700 JBCC Holdings 3,734
600 JFE Holdings 16,276
4 Joint REIT Investment 6,470
1,000 Kanamoto 3,630
1,400 Kanto Auto Works 15,191
2,000 Kasai Kogyo 4,097
2,000 Kasumi 8,174
Shares Value $
- ---------- ------------
500 Kintetsu World Express 10,070
2,000 Kitz 6,227
2,000 Konica Minolta Holdings 16,266
600 Kuroda Electric 4,095
200 Kyoshin Technosonic 629
4 LaSalle Japan REIT 4,697
5,000 Marubeni 18,051
2,000 Mazda Motor 4,928
1,000 Meiwa Estate 3,367
4 MID REIT 7,829
1,000 Mikuni 1,146
4,000 Mitsubishi Steel Manufacturing 8,356
44 Mitsui Knowledge Industry 6,260
5,000 Mitsui OSK Lines 28,445
600 Muto Seiko 2,537
300 Nafco 2,893
1,000 Namura Shipbuilding 4,097
600 NEC Mobiling 9,346
3,000 NHK Spring 13,721
800 Nihon Eslead 2,791
1,000 Nihon Parkerizing 8,326
3,000 Nihon Yamamura Glass 5,841
7,500 Nippin Coke & Engineering 7,986
2,000 Nippon Denko 8,498
5 Nippon Residential Investment REIT 5,552
1,000 Nippon Seiki 8,975
2,000 Nippon Soda 6,531
7,000 Nippon Steel 23,426
3,000 Nippon Steel Trading 4,046
600 Nippon Telegraph & Telephone 22,391
2,000 Nissan Shatai 12,554
3,000 Nissin 5,415
500 Nitta 5,694
700 Nittan Valve 1,973
1,200 NS Solutions 13,909
5,000 NSK 22,158
7 Okinawa Cellular Telephone 11,202
2,000 OKUMA 8,701
400 Osaka Steel 6,409
600 Otsuka 22,209
600 Otsuka Kagu 4,430
22 Pacific Golf Group International Holdings 9,114
2,000 Pacific Industrial 5,801
7 Pasona Group 3,177
2,000 Riken 5,253
2,000 Ryoden Trading 8,032
1,100 Ryosan 23,202
600 Sanei-International 3,760
1,200 Sanoh Industrial 4,855
700 Sanshin Electronics 4,323
900 Sato Shoji 4,691
1,000 Sekisui Jushi 6,602
1,000 Shinko Plantech 6,592
400 Shinko Shoji 2,580
The accompanying notes are an integral part of the financial statements.
26
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
4,000 Shinsho 6,166
1,100 Sorun 4,384
700 Star Micronics 5,672
6,000 Sumikin Bussan 12,291
8 Tact Home 1,541
4,000 Taihei Kogyo 13,021
1,100 Taiho Kogyo 7,675
400 Takachiho Electric 2,998
700 Takeda Pharmaceutical 24,845
1,000 Takefuji 5,344
300 Takeuchi Manufacturing 2,099
4,000 Takisawa Machine Tool 3,123
2,000 TBK 2,900
1,000 Tokai Lease 1,318
100 Token 2,337
4,000 Tomoku 7,180
7,000 Topy Industries 10,790
2,000 Toshiba Machine 5,922
1,400 Toyo Machinery & Metal 1,888
2,500 Toyota Tsusho 29,257
1,700 Unipres 12,378
200 USC 1,629
1,000 Yachiyo Industry 6,571
100 Yamato Kogyo 2,266
1,700 Yamazen 4,879
300 Yorozu 2,632
600 Yusen Air & Sea Service 6,936
------------
964,566
LIECHTENSTEIN - 0.1%
225 Liechtenstein Landesbank 11,042
------------
LUXEMBOURG - 0.2%
579 ArcelorMittal 13,782
------------
MALAYSIA - 0.2%
16,100 DRB-Hicom 4,502
5,300 Lingui Development 1,207
7,800 OSK Holdings 2,675
1,418 OSK Property Holdings 185
14,000 Titan Chemicals 3,226
11,300 Unisem M 2,636
------------
14,431
MEXICO - 0.8%
700 America Movil ADR, Series L 22,995
1,800 Cemex ADR (3) 13,464
38 Gruma Class B (3) 23
2,500 Grupo Modelo 7,293
900 Telefonos de Mexico ADR 14,400
------------
58,175
NETHERLANDS - 3.4%
2,705 Aegon 13,951
85 Corio 3,797
313 Draka Holding 3,368
Shares Value $
- ---------- ------------
1,291 European Aeronautic Defence and Space 18,779
695 Heineken Holding 16,516
1,662 ING Groep 15,574
253 KAS Bank 3,138
779 Koninklijke DSM 24,327
461 Nieuwe Steen Investments Funds REIT 7,023
1,063 OCE 6,761
1,363 Royal Dutch Shell Class A Shares 31,691
1,507 Royal Dutch Shell Class B Shares 34,682
2,175 Royal KPN 26,200
2,249 SNS Reaal 12,848
565 USG People 5,355
446 Vastned Offices/Industrial REIT 5,148
235 Vastned Retail REIT 10,380
447 Wavin 1,267
105 Wereldhave REIT 7,233
------------
248,038
NEW ZEALAND - 1.0%
13,956 Air New Zealand 8,282
11,425 AMP NZ Office Trust REIT 5,166
3,227 Fisher & Paykel Appliances Holdings 839
7,611 Fletcher Building 28,822
8,052 ING Property Trust REIT 2,549
13,558 Telecom Corp. of New Zealand 21,609
5,580 Vector 6,812
------------
74,079
NORWAY - 1.1%
8,800 Acta Holding 2,976
2,000 Norwegian Property 2,419
2,880 SpareBank 1 SMN 13,161
1,039 Sparebank 1 SR Bank 3,767
800 Sparebanken 1 Nord-Norge 7,311
350 Sparebanken More 8,503
1,607 StatoilHydro 30,549
2,200 Veidekke 10,589
------------
79,275
PHILIPPINES - 0.2%
1,000 Globe Telecom 17,066
------------
POLAND - 0.3%
4,052 Telekomunikacja Polska 21,419
------------
PORTUGAL - 0.5%
1,784 Portugal Telecom 13,707
5,163 Redes Energeticas Nacionais 21,411
------------
35,118
RUSSIA - 0.5%
600 Mobile Telesystems ADR 19,884
1,500 Vimpel-Communications ADR 14,130
------------
34,014
The accompanying notes are an integral part of the financial statements.
27
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
SINGAPORE - 3.7%
17,000 Beyonics Technology 1,493
8,000 CapitaCommercial Trust REIT 4,621
14,000 Cosco Singapore 9,648
2,500 DBS Group Holdings 16,046
9,000 Frasers Commercial Trust 1,034
18,000 Hi-P International 6,324
3,000 Jardine Cycle & Carriage 28,944
18,000 Jurong Technologies Industrial (1)(2) --
26,000 K1 Ventures 2,108
7,000 Keppel 28,282
5,473 Kim Eng Holdings 5,509
18,800 MobileOne 18,672
10,000 SembCorp Industries 18,445
3,733 Singapore Airlines 26,987
6,000 Singapore Petroleum 13,621
16,000 Singapore Telecommunications 27,674
24,000 StarHub 29,673
11,000 UOL Group 16,499
4,000 Venture 16,107
2,000 Wing Tai Holdings 1,189
------------
272,876
SOUTH AFRICA - 0.2%
1,598 Remgro 13,703
------------
SOUTH KOREA - 0.8%
160 Cambridge Members 1,195
2,000 Dae Won Kang Up 2,678
310 Global & Yuasa Battery 7,234
210 Husteel 3,174
160 INTOPS 3,120
190 Kolon Engineering & Construction 1,250
160 Korea Development 902
86 Nong Shim Holdings 3,906
210 Pusan City Gas 3,453
2,500 Seowon 1,214
1,100 SK Telecom ADR 17,237
580 SL (3) 1,640
273 S-Oil 12,806
------------
59,809
SPAIN - 3.2%
1,806 Banco Bilbao Vizcaya Argentaria 19,775
3,310 Banco Santander Central Hispano 31,822
265 Bolsas y Mercados Espanoles 7,464
247 Cementos Portland Valderrivas 7,470
5,153 Criteria Caixacorp 19,421
1,831 Gas Natural SDG 29,298
2,146 Gestevision Telecinco 20,348
1,827 Laboratorios Almirall 16,646
9,049 Mapfre 25,967
1,285 Repsol 24,589
1,528 Telefonica 29,117
1,350 Tubos Reunidos 3,481
------------
235,398
Shares Value $
- ---------- ------------
SWEDEN - 1.9%
400 AddTech 4,277
750 Axfood 15,714
1,800 BE Group 6,155
1,000 D Carnegie (1)(2)(3) --
1,700 Fabege 7,250
1,300 NCC Class B Shares 11,557
600 Ratos Class B Shares 10,407
2,832 Ssab Svenskt Stal 27,378
1,900 Svenska Cellulosa Class B Shares 18,545
1,700 Swedbank 9,766
6,000 TeliaSonera 28,424
------------
139,473
SWITZERLAND - 3.1%
159 Baloise Holding 11,802
144 Bellevue Group 5,111
7,509 Ferrexpo 16,316
541 Gottex Fund Management Holdings (3) 2,930
82 Helvetia Holding 21,396
200 Partners Group Holding 17,527
193 Roche Holding 24,440
658 Schindler Holding 34,800
15 Schweizerische National-Versicherungs Gesellschaft 6,520
257 Swiss Life Holding 20,123
107 Swisscom 28,037
36 Valora Holding 6,310
185 Zurich Financial Services 34,727
------------
230,039
TAIWAN - 3.2%
12,000 Asustek Computer 15,916
1,254 AU Optronics ADR 13,606
47,000 Chunghwa Picture Tubes 7,848
104 Chunghwa Telecom ADR 1,966
2,100 Compal Communications 1,617
30,300 Compal Electronics 25,754
7,000 Dah San Electric Wire & Cable 1,853
10,000 Evergreen Marine Taiwan 4,991
18,582 Far EasTone Telecommunications 21,162
9,000 First Financial Holding 4,764
715 First Insurance 231
4,000 Formosa Chemicals & Fibre 6,364
7,000 Formosa Petrochemical 16,282
53,000 HannStar Display 12,264
19,550 Inventec 9,816
18,050 Lite-On Technology 14,468
7,000 Marketech International 2,393
3,150 Mirle Automation 2,139
15,713 Mitac International 7,272
12,339 POU Chen 7,334
3,150 Promate Electronic 1,682
15,780 Quanta Computer 23,579
5,249 Sunplus Technology 2,628
The accompanying notes are an integral part of the financial statements.
28
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
9,000 Taiwan Mobile 14,183
6,000 U-Ming Marine Transport 10,853
16,575 Universal Scientific Industrial 5,314
1,000 Yieh Phui Enterprise 324
------------
236,603
THAILAND - 0.6%
4,700 Bangkok Bank 11,440
2,600 Electricity Generating 5,037
8,000 Hana Microelectronics 2,748
20,900 MCS Steel 1,436
3,800 Padaeng Industry 1,445
5,100 Precious Shipping 1,838
1,900 PTT 10,220
4,400 Regional Container Lines 862
11,800 Thai Plastic & Chemical 5,660
5,900 Thanachart Capital 1,876
------------
42,562
TURKEY - 0.3%
6,916 Turk Telekomunikasyon (3) 19,035
------------
UNITED KINGDOM - 9.6%
6,557 Ashmore Group 21,928
840 AstraZeneca 29,612
3,387 Aviva 15,795
1,384 Barratt Developments 2,864
6,061 Beazley Group 9,093
1,306 BHP Billiton 27,489
11,973 Booker Group 5,265
4,623 BP 32,971
4,137 Brit Insurance Holdings 11,328
920 British Polythene Industries 1,785
14,319 BT Group 19,895
1,162 Capital & Regional 593
869 Carnival 24,084
13,212 Charlemagne Capital 2,295
15,076 Chaucer Holdings 9,192
6,947 Clinton Cards 1,746
1,805 Close Brothers Group 16,782
1,586 Dawson Holdings 264
3,775 Drax Group 28,792
5,794 DS Smith 6,659
10,514 Electrocomponents 24,671
11,520 Ennstone (1)(2) --
3,174 Eurasian Natural Resources 27,914
2,304 Euromoney Institutional Investor 8,582
7,196 Filtrona 12,764
1,862 GlaxoSmithKline 28,871
19,903 Hays 26,550
4,207 Home Retail Group 15,655
2,800 HSBC Holdings 19,782
1,649 Interior Services Group 3,193
2,985 Investec 14,450
6,366 Johnston Press 1,153
Shares Value $
- ---------- ------------
3,355 Kazakhmys 26,531
11,027 Kcom Group 4,401
1,407 Keller Group 12,374
9,716 Kesa Electricals 19,136
1,481 Land Securities Group 12,314
19,526 Legal & General Group 16,826
4,730 Lloyds TSB Group 7,830
9,172 Man Group 34,367
2,706 Marston's 6,850
2,271 McBride 4,229
238 Mondi 623
191 Northgate 414
10,545 Pendragon 2,182
3,473 Raymarine 860
2,270 Renishaw 12,977
10,947 RSA Insurance Group 21,229
936 Segro 332
3,427 Severfield-Rowen 11,195
2,786 Sthree 9,451
665 Travis Perkins 6,925
3,038 TT electronics 1,280
876 Unilever 17,169
930 UTV Media 955
11,512 Vodafone Group 21,219
24,233 Woolworths Group (1)(2) --
1,140 WSP Group 4,583
4,296 Yell Group 2,524
------------
710,793
------------
TOTAL COMMON STOCK
(Cost $9,852,886) 7,198,826
------------
PREFERRED STOCK - 0.6%
BRAZIL - 0.4%
900 AES Tiete 7,461
200 Centrais Eletricas de Santa Catarina Class B 2,877
300 Cia Energetica do Ceara Class A 3,418
320 Eletropaulo Metropolitana
Eletricidade de Sao Paulo Class B 4,180
900 Telegraph Norte Leste Participacoes 14,132
------------
32,068
GERMANY - 0.2%
206 Dyckerhoff 11,237
918 ProSiebenSat.1 Media 2,671
------------
13,908
------------
TOTAL PREFERRED STOCK
(Cost $69,387) 45,976
------------
RIGHTS - 0.0%
BELGIUM - 0.0%
1,604 Fortis (1)(2)
(Cost $ --) --
------------
The accompanying notes are an integral part of the financial statements.
29
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
SHORT-TERM INVESTMENT (4) - 1.7%
123,376 JPMorgan U.S. Government Money
Market Fund, 0.270%
(Cost $123,376) 123,376
------------
TOTAL INVESTMENTS - 99.8%
(Cost $10,045,649) 7,368,178
------------
OTHER ASSETS LESS LIABILITIES - 0.2% 12,122
------------
NET ASSETS - 100.0% $7,380,300
============
(1) Security is fair valued.
(2) Security considered illiquid. On April 30, 2009 the value of these
securities amounted to $18,716 representing 0.3% of the net assets of the
Fund.
(3) Denotes non-income producing security.
(4) The rate shown represents the 7-day current yield as of April 30, 2009.
ADR - American Depositary Receipt
LP - Limited Partnership
REIT - Real Estate Investment Trust
Amounts designated as "--" are $0 or rounded to $0.
The accompanying notes are an integral part of the financial statements.
30
SCHRODER EMERGING MARKET EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
COMMON STOCK - 92.7%
BRAZIL - 11.3%
21,300 Banco Bradesco ADR 261,564
1,265 Banco Itau Holding Financeira ADR 17,594
3,100 Brasil Telecom Participacoes 89,283
1,800 Cia Brasileira de Distribuicao Grupo Pao de Acucar
ADR 58,122
8,425 Cia de Concessoes Rodoviarias 100,991
3,400 Cia Siderurgica Nacional ADR 62,968
1,800 Cia Vale do Rio Doce 29,977
6,300 Cia Vale do Rio Doce ADR 104,013
26,100 Cia Vale do Rio Doce Special ADR 358,353
24,691 Itau Unibanco Banco Multiplo ADR 339,004
6,000 Petroleo Brasileiro 101,157
23,100 Petroleo Brasileiro ADR 623,238
6,200 Tele Norte Leste Participacoes ADR 96,410
13,200 Weg 84,489
------------
2,327,163
CHILE - 1.4%
1,500 Banco Santander Chile ADR 53,115
9,200 Enersis ADR 137,908
2,800 Sociedad Quimica y Minera de Chile ADR 88,228
------------
279,251
CHINA - 13.7%
1,056,000 Bank of China 395,174
134,000 China Communications Construction Class H 161,502
240,000 China Communications Services Class H 142,461
366,000 China Construction Bank Class H 213,474
74,000 China Life Insurance Class H 261,165
148,000 China National Building Material Class H 313,971
324,000 China Petroleum & Chemical Class H 254,200
75,000 China Shanshui Cement Group (1) 42,100
78,000 Golden Eagle Retail Group 63,008
647,000 Industrial & Commercial Bank of China Class H 372,362
63,000 Parkson Retail Group 80,076
49,000 Ping An Insurance Group of China Class H 306,665
203,500 Sino- Ocean Land Holdings 151,256
121,000 Uni-President China Holdings (1) 61,050
------------
2,818,464
CZECH REPUBLIC - 0.6%
1,924 CEZ 79,485
2,174 Telefonica O2 Czech Republic 46,896
------------
126,381
EGYPT - 2.5%
6,414 Commercial International Bank 45,304
Shares Value $
- ---------- ------------
20,670 Egyptian Financial Group-Hermes Holding 74,980
6,465 Orascom Construction Industries 183,160
500 Orascom Construction Industries GDR 29,150
12,262 Orascom Telecom Holding 69,779
38,961 Telecom Egypt 110,961
------------
513,334
HONG KONG - 7.2%
42,000 Beijing Enterprises Holdings 185,625
73,000 China Mengniu Dairy 130,937
61,500 China Mobile 534,093
380,000 CNOOC 426,118
206,000 Denway Motors 86,924
441,140 Franshion Properties China 119,542
------------
1,483,239
HUNGARY - 0.4%
677 Richter Gedeon 88,876
------------
INDIA - 6.8%
14,400 ICICI Bank ADR 297,072
10,400 Infosys Technologies ADR 320,424
48,803 ITC GDR 184,251
16,450 Mahindra & Mahindra GDR 160,424
5,800 Reliance Industries GDR (2) 441,960
------------
1,404,131
INDONESIA - 3.8%
43,500 Astra International 74,078
303,500 Bank Rakyat Indonesia 166,537
204,500 Indosat 108,344
551,500 Perusahaan Gas Negara 135,658
122,500 Tambang Batubara Bukit Asam 110,099
237,000 Telekomunikasi Indonesia 176,012
------------
770,728
ISRAEL - 2.9%
13,009 Bank Hapoalim (1) 30,091
6,169 Bezeq Israeli Telecommunication 9,745
4,217 Israel Chemicals 35,488
4,738 Makhteshim-Agan Industries 21,132
20,745 Shufersal 68,635
9,700 Teva Pharmaceutical Industries ADR 425,733
------------
590,824
MALAYSIA - 1.9%
52,500 Bumiputra-Commerce Holdings 118,782
31,900 IJM 44,828
16,000 Kuala Lumpur Kepong 52,164
97,200 PLUS Expressways 90,152
35,400 Telekom Malaysia 38,007
26,300 Tenaga Nasional 54,330
------------
398,263
The accompanying notes are an integral part of the financial statements.
31
SCHRODER EMERGING MARKET EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
MEXICO - 1.3%
4,639 America Movil ADR, Series L 152,391
2,900 Cemex ADR (1) 21,692
6,500 Grupo Televisa ADR 100,620
------------
274,703
PHILIPPINES - 0.4%
1,910 Philippine Long Distance Telephone 86,854
------------
RUSSIA - 7.2%
7,150 LUKOIL ADR 315,458
11,866 MMC Norilsk Nickel ADR 98,844
7,800 Mobile Telesystems ADR 258,492
850 NovaTek OAO GDR 30,175
35,443 OAO Gazprom ADR 633,721
25,200 Rosneft Oil GDR 132,300
138 Sberbank GDR 18,933
------------
1,487,923
SOUTH AFRICA - 7.4%
7,505 AngloGold Ashanti 232,384
130,564 FirstRand 201,521
9,003 Impala Platinum Holdings 174,470
23,235 MTN Group 305,037
9,733 Naspers Class N Shares 200,093
28,089 Raubex Group 73,088
6,018 Sasol 183,636
14,889 Standard Bank Group 145,280
------------
1,515,509
SOUTH KOREA - 10.2%
9,300 Daegu Bank 64,161
2,710 Hyundai Development 84,886
1,482 Hyundai Engineering & Construction 70,212
2,050 Hyundai Mobis 157,643
2,123 Hyundai Motor 113,881
2,673 KB Financial Group 83,204
2,017 KT&G 111,512
1,194 LG Chem 132,303
3,750 LG Display 91,915
14,050 LG Telecom 99,131
476 POSCO 147,981
892 Samsung Electronics 413,519
508 Samsung Electronics GDR (2) 115,316
2,530 Samsung Heavy Industries 60,229
6,850 Shinhan Financial Group 170,043
161 Shinsegae 57,554
769 SK Telecom 110,502
------------
2,083,992
TAIWAN - 8.8%
76,000 AU Optronics 78,736
41,000 Cathay Financial Holding 45,948
14,350 Cathay Financial Holding GDR 160,753
265,000 Chinatrust Financial Holding 121,438
8,568 Chunghwa Telecom ADR 161,935
70,713 HON HAI Precision Industry GDR 427,814
Shares Value $
- ---------- ------------
14,596 Siliconware Precision Industries ADR 109,032
162,000 Taiwan Cement 154,846
50,831 Taiwan Semiconductor Manufacturing ADR 537,284
------------
1,797,786
THAILAND - 1.3%
24,900 Advanced Info Service 55,836
20,100 Bangkok Bank 48,924
26,200 PTT Exploration & Production (1) 76,971
46,700 Siam Commercial Bank 77,546
------------
259,277
TURKEY - 3.6%
2,685 BIM Birlesik Magazalar 73,897
5,973 Tupras Turkiye Petrol Rafine 59,778
42,182 Turk Telekomunikasyon (1) 116,095
7,909 Turkcell Iletisim Hizmet 40,567
84,377 Turkiye Garanti Bankasi 177,336
36,448 Turkiye Halk Bankasi 127,672
47,068 Turkiye Is Bankasi Class C 136,019
------------
731,364
TOTAL COMMON STOCK
(Cost $20,327,292) 19,038,062
------------
PREFERRED STOCK - 3.1%
BRAZIL - 3.1%
2,000 Banco Bradesco 24,889
6,979 Bradespar 87,297
1,500 Cia de Bebidas das Americas 84,447
7,449 Cia Energetica de Minas Gerais 90,140
2,400 Cia Vale do Rio Doce Class A 33,754
4,943 Eletropaulo Metropolitana Eletricidade de Sao Paulo
Class B 64,566
4,100 Petroleo Brasileiro 55,562
700 Telegraph Norte Leste Participacoes 10,992
5,500 Ultrapar Participacoes 153,926
1,787 Usinas Siderurgicas de Minas Gerais Class A 26,547
------------
TOTAL PREFERRED STOCK
(Cost $706,795) 632,120
------------
INVESTMENT COMPANY - 0.6%
12,142 iShares MSCI Taiwan Index Fund
(Cost $119,688) 124,091
------------
EQUITY-LINKED
WARRANT (2)(3) - 0.4%
RUSSIA - 0.4%
102,220 Sberbank Savings Bank of the Russian Federation
Expires 02/28/18
(Cost $214,649) 84,843
------------
RIGHTS - 0.0%
BRAZIL - 0.0%
5 Ambev
(Cost $--) 65
------------
The accompanying notes are an integral part of the financial statements.
32
SCHRODER EMERGING MARKET EQUITY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
SHORT-TERM INVESTMENT (4) - 3.3%
677,942 JPMorgan U.S. Government Money Market Fund, 0.270%
(Cost $677,942) 677,942
------------
TOTAL INVESTMENTS - 100.1%
(Cost $22,046,366) 20,557,123
------------
OTHER ASSETS LESS LIABILITIES - (0.1)% (25,059)
------------
NET ASSETS - 100.0% $ 20,532,064
============
(1) Non-income producing security.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration
normally to qualified institutions. On April 30, 2009, the value of these
securities amounted to $642,119, representing 3.1% of the net assets of the
Fund.
(3) Securities are not readily marketable.
(4) The rate shown represents the 7-day current yield as of April 30, 2009.
ADR - American Depositary Receipt
GDR - Global Depositary Reciept
MSCI - Morgan Stanley Capital International
The accompanying notes are an integral part of the financial statements.
33
SCHRODER U.S. OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
COMMON STOCK - 90.1%
AUTO & TRANSPORTATION - 2.8%
37,900 BorgWarner 1,097,205
68,900 Kansas City Southern (1) 1,050,725
18,500 Republic Airways Holdings (1) 132,460
78,900 Thor Industries 1,813,911
------------
4,094,301
CONSUMER DISCRETIONARY - 18.4%
128,700 Ambassadors Group 1,570,140
19,200 Capella Education (1) 986,496
79,300 Central Garden & Pet (1) 762,866
65,900 Central Garden & Pet Class A (1) 597,713
50,800 Children's Place (1) 1,444,752
160,300 Clear Channel Outdoor Holdings Class A (1) 615,552
110,900 Geo Group (1) 1,844,267
67,000 Healthcare Services Group 1,197,960
128,200 Home Inns & Hotels Management ADR (1) 1,766,596
239,000 Internap Network Services (1) 664,420
40,400 Lamar Advertising Class A (1) 682,760
156,700 LKQ (1) 2,660,766
19,400 Men's Wearhouse 361,616
56,500 Pinnacle Entertainment (1) 705,120
45,300 Regis 867,042
53,100 Rent-A-Center (1) 1,022,175
210,700 Scientific Games Class A (1) 3,685,143
100,900 Shuffle Master (1) 384,429
32,100 Sonic (1) 350,532
55,000 Standard Parking (1) 838,200
123,500 Waste Connections (1) 3,183,830
16,100 Watson Wyatt Worldwide Class A 854,105
------------
27,046,480
CONSUMER STAPLES - 4.2%
19,600 Boston Beer Class A (1) 521,360
16,900 Diamond Foods 442,611
66,000 NBTY (1) 1,710,060
47,400 Sanderson Farms 1,891,260
69,400 United Natural Foods (1) 1,580,932
------------
6,146,223
FINANCIAL SERVICES - 17.3%
75,073 Argo Group International Holdings (1) 2,101,293
20,600 Bank of Hawaii 723,884
23,100 Berkshire Hills Bancorp 521,136
84,000 Brookline Bancorp 833,280
281,000 Chimera Investment REIT 991,930
176,200 Conseco (1) 281,920
20,143 Cullen/Frost Bankers 948,534
85,520 CVB Financial 513,975
14,000 Digital Realty Trust REIT 504,140
146,600 Euronet Worldwide (1) 2,371,988
106,800 Genpact (1) 956,928
Shares Value $
- ---------- ------------
31,250 H&E Equipment Services (1) 235,312
28,408 Health Care REIT 967,861
48,500 Huron Consulting Group (1) 2,325,575
47,400 Investment Technology Group (1) 1,079,772
68,800 Investors Real Estate Trust REIT 636,400
52,800 Lazard LP 1,441,440
62,600 National Retail Properties REIT 1,110,524
141,800 Online Resources (1) 608,322
103,100 Reinsurance Group of America Class A 3,277,549
22,100 SVB Financial Group (1) 458,796
45,000 Westamerica Bancorporation 2,413,350
------------
25,303,909
HEALTH CARE - 13.3%
36,700 AMERIGROUP (1) 1,096,229
75,200 Amsurg (1) 1,544,608
22,800 athenahealth (1) 725,040
224,000 Bruker (1) 1,473,920
28,700 Centene (1) 527,219
73,600 Cepheid (1) 713,920
42,100 Cooper 1,210,375
6,900 Dendreon (1) 146,280
16,600 Haemonetics (1) 857,058
100,200 Health Management Associates (1) 467,934
31,600 HMS Holdings (1) 947,368
13,000 Immucor (1) 211,770
47,000 Luminex (1) 771,270
31,800 Perrigo 824,256
211,200 PSS World Medical (1) 3,066,624
38,000 Seattle Genetics (1) 350,740
132,000 Skilled Healthcare Group Class A (1) 1,152,360
33,000 Sun Healthcare Group (1) 279,510
17,200 Techne 984,184
80,000 Vivus (1) 320,800
28,400 Volcano (1) 374,596
42,300 West Pharmaceutical Services 1,381,095
------------
19,427,156
MATERIALS & PROCESSING - 7.4%
26,900 Airgas 1,159,928
31,400 Brush Engineered Materials (1) 531,288
143,500 Cabot 2,095,100
29,200 Clean Harbors (1) 1,462,920
113,300 Nova Chemicals 653,741
37,600 PAN American Silver (1) 619,648
41,700 Perini (1) 721,410
16,400 Royal Gold 593,024
10,900 Schnitzer Steel Industries Class A 540,204
44,000 ShawCor Class A 803,956
50,700 Sonoco Products 1,237,587
51,400 Wausau Paper 448,722
------------
10,867,528
The accompanying notes are an integral part of the financial statements.
34
SCHRODER U.S. OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
OTHER ENERGY - 4.7%
26,600 CARBO Ceramics 816,886
16,200 Dresser-Rand Group (1) 399,006
103,342 Galleon Energy Class A (1) 410,562
57,800 Goodrich Petroleum (1) 1,325,354
135,000 Key Energy Services (1) 592,650
84,200 Plains Exploration & Production (1) 1,588,854
98,300 St. Mary Land & Exploration 1,756,621
------------
6,889,933
PRODUCER DURABLES - 3.2%
25,500 Actuant Class A 312,630
62,900 FEI (1) 1,080,622
57,450 IDEX 1,450,613
56,400 Rofin-Sinar Technologies (1) 1,201,884
95,600 Veeco Instruments (1) 692,144
------------
4,737,893
TECHNOLOGY - 15.2%
344,000 Anadigics (1) 1,038,880
122,200 Ariba (1) 1,174,342
143,000 Aspen Technology (1) 1,109,680
171,400 Atmel (1) 658,176
80,100 comScore (1) 1,022,076
61,400 F5 Networks (1) 1,674,378
185,200 Gartner (1) 2,502,052
126,700 Harmonic (1) 928,711
130,300 Informatica (1) 2,071,770
127,300 Intermec (1) 1,537,784
136,860 Parametric Technology (1) 1,525,989
100,600 PMC - Sierra (1) 796,752
26,200 QLogic (1) 371,516
17,200 Scansource (1) 425,012
67,800 Semtech (1) 977,676
252,700 SonicWALL (1) 1,372,161
23,100 Standard Microsystems (1) 366,366
29,100 Syniverse Holdings (1) 366,660
184,800 Vishay Intertechnology (1) 1,084,776
113,700 Volterra Semiconductor (1) 1,306,413
------------
22,311,170
UTILITIES - 3.6%
36,700 Cleco 774,003
70,200 NorthWestern 1,468,584
73,000 Portland General Electric 1,333,710
31,900 UIL Holdings 736,571
39,100 Unisource Energy 1,029,112
------------
5,341,980
TOTAL COMMON STOCK
(Cost $143,903,238) 132,166,573
------------
Shares Value $
- ---------- ------------
SHORT-TERM INVESTMENT (2) - 9.1%
13,415,201 JPMorgan U.S. Government Money
Market Fund, 0.270% (Cost $13,415,201) 13,415,201
------------
TOTAL INVESTMENTS - 99.2%
(Cost $157,318,439) 145,581,774
------------
OTHER ASSETS LESS
LIABILITIES - 0.8% 1,130,790
------------
NET ASSETS 100.0% $146,712,564
============
(1) Denotes non-income producing security.
(2) The rate shown represents the 7-day current yield as of April 30, 2009.
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
35
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
COMMON STOCK - 88.2%
AUTO & TRANSPORTATION - 1.8%
3,300 Genuine Parts 112,068
6,700 Wabtec 255,538
------------
367,606
CONSUMER DISCRETIONARY - 15.0%
5,500 Copart (1) 172,645
14,000 Corrections Corp. of America (1) 197,820
4,800 DeVry 204,288
10,700 Dick's Sporting Goods (1) 203,300
12,700 Interpublic Group of Cos. (1) 79,502
4,700 Lamar Advertising Class A (1) 79,430
1,900 Magna International Class A 64,524
20,600 Monster Worldwide (1) 284,280
4,200 Regis 80,388
28,800 Republic Services 604,800
8,300 Ross Stores 314,902
25,500 Scientific Games Class A (1) 445,995
8,000 VeriSign (1) 164,640
2,500 Watson Wyatt Worldwide Class A 132,625
------------
3,029,139
CONSUMER STAPLES - 2.0%
7,400 NBTY (1) 191,734
8,000 Ruddick 205,280
------------
397,014
FINANCIAL SERVICES - 14.6%
4,700 Annaly Capital Management REIT 66,129
3,300 Bank of Hawaii 115,962
5,700 Cullen/Frost Bankers 268,413
2,000 Dun & Bradstreet 162,800
5,600 Federated Investors 128,128
2,600 Global Payments 83,356
7,000 HCC Insurance Holdings 167,440
6,100 Health Care REIT 207,827
4,800 Huron Consulting Group (1) 230,160
7,200 Lazard LP 196,560
4,200 M&T Bank 220,290
7,000 People's United Financial 109,340
15,700 Reinsurance Group of America Class A 499,103
15,000 SLM (1) 72,450
3,200 Westamerica Bancorporation 171,616
10,400 WR Berkley 248,664
------------
2,948,238
HEALTH CARE - 13.2%
1,600 Alexion Pharmaceuticals (1) 53,472
14,500 DaVita (1) 672,365
10,400 Dentsply International 297,648
7,000 Endo Pharmaceuticals Holdings (1) 115,780
2,900 Gen-Probe (1) 139,664
3,400 Hospira (1) 111,758
1,400 Inverness Medical Innovations (1) 45,206
8,100 Life Technologies (1) 302,130
16,800 Mylan (1) 222,600
Shares Value $
- ---------- ------------
10,000 Omnicare 257,100
3,900 Perrigo 101,088
5,500 Pharmaceutical Product Development 107,855
1,200 Techne 68,664
4,800 West Pharmaceutical Services 156,720
------------
2,652,050
MATERIALS & PROCESSING - 10.0%
2,700 Airgas 116,424
14,200 Albemarle 380,844
18,400 Cabot 268,640
5,300 Celanese 110,452
3,400 Commercial Metals 50,592
9,600 Crown Holdings (1) 211,680
1,400 Jacobs Engineering Group (1) 53,256
20,100 Pactiv (1) 439,386
3,000 PAN American Silver (1) 49,440
1,200 Royal Gold 43,392
1,900 Schnitzer Steel Industries Class A 94,164
5,600 ShawCor Class A 102,321
10,770 Yamana Gold 85,191
------------
2,005,782
OTHER ENERGY - 4.4%
7,900 Concho Resources (1) 216,618
2,400 Dresser-Rand Group (1) 59,112
11,300 Exterran Holdings (1) 233,345
2,100 FMC Technologies (1) 71,883
14,300 Galleon Energy Class A (1) 56,812
13,200 Plains Exploration & Production (1) 249,084
------------
886,854
PRODUCER DURABLES - 3.0%
2,600 Dover 80,028
11,650 IDEX 294,163
11,200 Zebra Technologies (1) 238,000
------------
612,191
TECHNOLOGY - 18.7%
8,000 Adtran 169,200
33,700 Amdocs (1) 705,341
48,600 Brocade Communications Systems (1) 280,908
9,900 Citrix Systems (1) 282,447
4,100 Concur Technologies (1) 110,987
7,900 Data Domain (1) 130,982
10,700 F5 Networks (1) 291,789
28,400 Integrated Device Technology (1) 154,212
11,800 Intersil Class A 136,880
20,700 Macrovision Solutions (1) 418,554
8,200 Microchip Technology 188,600
11,900 NetApp (1) 217,770
13,500 Parametric Technology (1) 150,525
19,800 SAIC (1) 358,380
13,454 Seagate Technology 109,785
7,900 Skyworks Solutions (1) 69,836
------------
3,776,196
The accompanying notes are an integral part of the financial statements.
36
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
UTILITIES - 5.5%
6,200 Cleco 130,758
8,600 NV Energy 88,150
13,100 NeuStar (1) 249,031
11,100 NII Holdings (1) 179,376
6,400 Northeast Utilities 134,528
11,000 Portland General Electric 200,970
12,900 tw telecom (1) 118,551
------------
1,101,364
------------
TOTAL COMMON STOCK
(Cost $17,697,586) 17,776,434
------------
SHORT-TERM INVESTMENT (2) - 12.1%
2,445,357 JPMorgan U.S. Government Money
Market Fund, 0.270% (Cost $2,445,357) 2,445,357
------------
TOTAL INVESTMENTS - 100.3%
(Cost $20,142,943) 20,221,791
------------
OTHER ASSETS LESS
LIABILITIES - (0.3)% (65,028)
------------
NET ASSETS - 100.0% $ 20,156,763
============
(1) Denotes non-income producing security.
(2) The rate shown represents the 7-day current yield as of April 30, 2009.
REIT -- Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
37
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
COMMON STOCK - 99.5%
BERMUDA - 1.4%
43,952 Accenture Class A 1,293,507
17,353 ACE 803,791
9,300 Allied World Assurance Holdings 345,402
7,800 Aspen Insurance Holdings 183,924
20,700 Axis Capital Holdings 510,048
9,504 Endurance Specialty Holdings 248,625
19,800 Invesco 291,456
26,604 Nabors Industries (1) 404,647
12,800 Nordic American Tanker Shipping 415,616
12,700 Platinum Underwriters Holdings 365,379
------------
Total Bermuda 4,862,395
------------
CANADA - 7.8%
25,278 AGF Management Class B 243,648
6,500 Agnico-Eagle Mines 287,382
15,016 Agrium 644,388
31,442 Bank of Montreal 1,040,951
43,433 Bank of Nova Scotia 1,235,534
32,307 Barrick Gold 935,552
18,900 Baytex Energy Trust 261,378
5,550 Bell Aliant Regional Communications Income Fund
(1)(2)(3)(4) 110,944
33,800 CAE 215,305
4,200 Canadian Imperial Bank of Commerce 188,579
28,121 Canadian National Railway 1,137,002
23,698 Canadian Natural Resources 1,092,639
20,102 Canadian Oil Sands Trust 415,148
7,800 Cogeco Cable 191,225
8,658 Davis & Henderson Income Fund 99,780
7,826 Empire Class A 326,920
7,000 Enbridge 216,202
11,830 EnCana 542,270
600 Fairfax Financial Holdings 158,713
11,054 George Weston 548,762
40,910 Goldcorp 1,118,502
31,656 Great-West Lifeco 543,652
15,188 Harry Winston Diamond 63,777
20,551 Husky Energy 497,971
10,700 IGM Financial 319,000
9,935 Industrial Alliance Insurance and Financial Services 199,183
29,000 Loblaw 781,452
28,637 Manulife Financial 487,724
21,105 Methanex 243,050
11,600 Metro 359,735
7,900 National Bank of Canada 289,024
55,541 Nexen 1,057,658
11,500 Pembina Pipeline Income Fund 129,641
18,345 Penn West Energy Trust 201,271
22,510 Petro-Canada 710,524
3,800 Potash Corp. of Saskatchewan 326,460
19,000 Power Corp. of Canada 355,285
21,500 Power Financial 430,144
13,796 Research In Motion (1) 953,151
Shares Value $
- ---------- ------------
39,864 Rogers Communications Class B 979,643
60,941 Royal Bank of Canada 2,160,594
4,203 Saputo 76,796
32,683 Shaw Communications Class B 506,777
4,768 Shoppers Drug Mart 172,441
22,280 Suncor Energy 560,781
94,400 Talisman Energy 1,182,868
50,280 Teck Cominco (United States) Class B 529,951
16,959 TELUS Class A 394,445
9,000 TMX Group 242,067
42,907 Toronto-Dominion Bank 1,693,839
9,279 Vermilion Energy Trust 209,985
------------
Total Canada 27,669,713
------------
CAYMAN ISLANDS - 0.2%
13,388 Garmin 337,243
64,006 Seagate Technology 522,289
------------
Total Cayman Islands 859,532
------------
ISRAEL - 0.1%
5,700 Teva Pharmaceutical Industries ADR 250,173
------------
Total Israel 250,173
------------
PANAMA - 0.0%
3,400 Copa Holdings 104,210
------------
Total Panama 104,210
------------
UNITED STATES - 90.0%
ALLIANCE DATA SYSTEMS - 0.1%
19,800 Perot Systems Class A (1) 278,388
19,200 S1 (1) 119,040
------------
397,428
AMUSEMENT AND RECREATION SERVICES - 0.1%
6,600 Penn National Gaming (1) 224,532
------------
APPAREL & ACCESSORY STORES - 1.2%
14,000 Abercrombie & Fitch Class A 378,840
37,135 American Eagle Outfitters 550,341
9,398 Buckle 351,203
5,715 Dress Barn (1) 86,525
22,224 Kohl's (1) 1,007,858
38,239 Limited Brands 436,689
28,978 Nordstrom 655,772
14,126 Ross Stores 535,941
34,800 Wet Seal (1) 132,588
------------
4,135,757
APPAREL & OTHER FINISHED PRODUCTS - 0.3%
5,582 PhillipsVan Heusen 162,045
4,278 Polo Ralph Lauren 230,328
10,085 VF 597,738
------------
990,111
The accompanying notes are an integral part of the financial statements.
38
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
AUTOMOTIVE DEALERS & GASOLINE SERVICE
STATIONS - 0.3%
6,871 Advance Auto Parts 300,606
3,884 Autozone (1) 646,259
------------
946,865
BUILDING CONSTRUCTION GENERAL CONTRACTORS - 0.0%
323 NVR (1) 163,235
------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY &
MOBILE HOME DEALERS - 1.2%
78,893 Home Depot 2,076,464
71,883 Lowe's 1,545,484
11,879 Sherwin-Williams 672,827
------------
4,294,775
BUSINESS SERVICES - 6.7%
12,600 Actuate (1) 46,620
17,529 Adobe Systems (1) 479,418
9,777 Affiliated Computer Services Class A (1) 473,011
7,897 Alliance Data Systems (1) 330,647
34,167 Automatic Data Processing 1,202,678
5,100 Brink's 144,585
50,700 CA 874,575
20,792 Check Point Software Technologies (1) 481,751
22,412 Computer Sciences (1) 828,348
31,000 Compuware (1) 231,880
12,017 CSG Systems International (1) 174,246
24,800 Earthlink (1) 187,984
8,087 Fair Isaac 136,023
21,301 Fidelity National Information Services 380,223
14,800 Fiserv (1) 552,336
7,749 Google Class A (1) 3,068,372
7,200 H&E Equipment Services (1) 54,216
9,760 Heartland Payment Systems 78,470
3,900 Interactive Data 87,672
19,544 Intuit (1) 452,053
16,862 Lender Processing Services 483,265
2,100 Mantech International Class A (1) 75,999
322,050 Microsoft 6,524,733
2,991 MicroStrategy Class A (1) 116,380
27,423 Omnicom Group 863,002
210,081 Oracle 4,062,967
18,000 Rent-A-Center (1) 346,500
8,345 Robert Half International 200,447
1,936 Sohu.com (1) 100,962
32,832 Total System Services 409,415
12,840 United Online 68,052
12,000 VMware (1) 312,960
------------
23,829,790
CHEMICALS & ALLIED PRODUCTS - 10.1%
76,233 Abbott Laboratories 3,190,351
Shares Value $
- ---------- ------------
11,600 Albemarle 311,112
52,926 Amgen (1) 2,565,323
39,367 Avon Products 895,993
21,471 Bristol-Myers Squibb 412,243
2,582 CF Industries Holdings 186,033
3,391 Colgate-Palmolive 200,069
49,734 Dow Chemical 795,744
44,807 EI Du Pont de Nemours 1,250,115
49,061 Eli Lilly 1,615,088
12,512 Estee Lauder Class A 374,109
19,994 Genzyme (1) 1,066,280
33,902 Gilead Sciences (1) 1,552,712
110,384 Johnson & Johnson 5,779,706
5,414 Lubrizol 233,993
58,874 Merck 1,427,106
7,440 Monsanto 631,582
278,887 Pfizer 3,725,930
119,911 Procter & Gamble 5,928,400
13,700 Schering-Plough 315,374
7,672 Terra Industries 203,308
7,030 USANA Health Sciences (1) 168,087
9,800 Valspar 235,200
66,990 Wyeth 2,840,376
------------
35,904,234
COAL MINING - 0.2%
13,600 Arch Coal 189,992
13,832 Natural Resource Partners LP 316,891
------------
506,883
COMMUNICATIONS - 4.2%
5,600 Adtran 118,440
235,839 AT&T 6,042,195
7,336 Atlantic Tele-Network 161,979
16,720 CenturyTel 453,948
26,000 Comcast Class A 401,960
44,556 DIRECTV Group (1) 1,101,870
11,703 Embarq 427,862
34,267 Frontier Communications 243,638
39,900 MetroPCS Communications (1) 681,891
11,624 NII Holdings (1) 187,844
20,124 Novatel Wireless (1) 137,849
8,149 NTELOS Holdings 130,221
25,500 Syniverse Holdings (1) 321,300
5,300 Telephone & Data Systems 151,951
12,059 Time Warner Cable 388,662
17,000 TiVo (1) 127,500
130,130 Verizon Communications 3,948,144
------------
15,027,254
CONSTRUCTION SPECIAL TRADE CONTRACTORS - 0.1%
5,300 Comfort Systems USA 57,187
20,500 EMCOR Group (1) 426,195
------------
483,382
The accompanying notes are an integral part of the financial statements.
39
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
DEPOSITORY INSTITUTIONS - 5.1%
14,814 Associated Banc-Corp 229,173
226,450 Bank of America 2,022,198
17,520 Bank of New York Mellon 446,410
29,298 BB&T 683,815
25,102 Capital One Financial 420,207
116,822 Citigroup 356,307
8,234 City Bank 25,772
9,300 City National 340,380
12,733 Comerica 267,138
1,600 First Citizens BancShares 191,472
9,800 First Midwest Bancorp 86,828
9,800 FirstMerit 190,218
8,600 FNB 64,672
69,200 Huntington Bancshares 193,068
144,363 JPMorgan Chase 4,763,979
6,870 M&T Bank 360,332
11,297 Northern Trust 614,105
22,541 PNC Financial Services Group 894,878
12,300 Prosperity Bancshares 341,571
6,777 State Street 231,299
16,868 Sterling Bancshares 112,172
28,688 SunTrust Banks 414,255
85,251 U.S. Bancorp 1,553,273
16,000 Valley National Bancorp 231,520
142,772 Wells Fargo 2,856,868
16,400 Zions Bancorporation 179,252
------------
18,071,162
EATING & DRINKING PLACES - 1.3%
9,121 Brinker International 161,624
2,900 Chipotle Mexican Grill (1) 235,161
11,609 CKE Restaurants 111,098
6,849 Darden Restaurants 253,208
52,881 McDonald's 2,818,028
30,200 Yum! Brands 1,007,170
------------
4,586,289
ELECTRIC & OTHER ELECTRICAL EQUIPMENT - 0.2%
14,200 Harmonic (1) 104,086
27,600 NetApp (1) 505,080
16,000 QLogic (1) 226,880
------------
836,046
ELECTRIC, GAS & SANITARY SERVICES - 3.5%
24,088 American Electric Power 635,441
31,341 Centerpoint Energy 333,468
29,700 CMS Energy 356,994
13,960 Consolidated Edison 518,335
44 Dominion Resources 1,327
11,547 Edison International 329,205
Shares Value $
- ---------- ------------
37,900 Energy 388,475
6,800 Energy Transfer Partners LP 268,940
11,400 Entergy 738,378
3,900 Exelon 179,907
23,600 FPL Group 1,269,444
12,600 Kinder Morgan Energy Partners LP 601,776
26,138 MDU Resources Group 459,245
8,300 ONEOK Partners LP 390,100
27,937 PG&E 1,037,021
16,946 Pinnacle West Capital 463,982
10,296 Questar 305,997
11,104 SCANA 335,563
34,208 Southern 987,927
8,600 Southern Union 136,826
24,153 TECO Energy 255,780
4,900 UGI 112,406
19,600 Vectren 434,532
42,600 Waste Management 1,136,142
46,800 Xcel Energy 862,992
------------
12,540,203
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT - 6.2%
27,827 Altera 453,858
11,583 Amphenol Class A 391,969
20,017 Analog Devices 425,962
4,436 Ceradyne (1) 76,477
177,385 Cisco Systems (1) 3,427,078
14,517 Cooper Industries Class A 476,012
45,571 Emerson Electric 1,551,237
365,089 General Electric 4,618,376
13,867 Harris 424,053
244,774 Intel 3,862,534
3,350 Lincoln Electric Holdings 149,175
27,698 Micrel 207,735
11,539 Multi-Fineline Electronix (1) 231,588
37,720 National Semiconductor 466,596
8,003 Plantronics 101,958
73,477 Qualcomm 3,109,547
79,322 Texas Instruments 1,432,555
10,000 Thomas & Betts (1) 311,200
14,455 Xilinx 295,460
------------
22,013,370
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT, AND
RELATED SERVICES - 0.5%
15,500 Fluor 586,985
8,700 Hewitt Associates (1) 272,832
10,800 Quest Diagnostics 554,364
5,900 SAIC (1) 106,790
3,443 Watson Wyatt Worldwide Class A 182,651
------------
1,703,622
The accompanying notes are an integral part of the financial statements.
40
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
FABRICATED METAL PRODUCTS - 0.5%
4,254 Ball 160,461
40,997 Illinois Tool Works 1,344,702
4,000 Snap-On 135,680
5,100 Sun Hydraulics 92,310
------------
1,733,153
FOOD & KINDRED PRODUCTS - 4.0%
45,800 Archer-Daniels-Midland 1,127,596
10,409 Cal-Maine Foods 275,526
90,658 Coca-Cola 3,902,827
18,007 General Mills 912,775
4,100 Hershey 148,174
18,165 HJ Heinz 625,239
10,313 Hormel Foods 322,694
11,220 J&J Snack Foods 434,887
18,937 Kellogg 797,437
67,217 Kraft Foods Class A 1,572,878
10,612 McCormick 312,524
16,862 Pepsi Bottling Group 527,275
68,124 PepsiCo 3,389,850
------------
14,349,682
FOOD STORES - 0.3%
25,581 Kroger 553,061
30,643 Safeway 605,199
------------
1,158,260
FURNITURE & FIXTURES - 0.2%
31,552 Johnson Controls 599,804
13,961 Tempur-Pedic International 179,538
------------
779,342
GENERAL MERCHANDISE STORES - 2.3%
10,700 Casey's General Stores 284,727
17,273 Costco Wholesale 839,468
15,426 Family Dollar Stores 511,989
9,900 Target 408,474
36,398 TJX 1,018,052
104,423 Wal-Mart Stores 5,262,919
------------
8,325,629
HEALTH SERVICES - 0.5%
11,362 DaVita (1) 526,856
8,962 Express Scripts (1) 573,299
10,980 Laboratory Corp. of America Holdings (1) 704,367
3,718 Mednax (1) 133,476
------------
1,937,998
HOLDING & OTHER INVESTMENT OFFICES - 2.3%
4,500 Alexandria Real Estate Equities REIT 164,160
5,494 AvalonBay Communities REIT 312,114
29 Berkshire Hathaway Class A (1) 2,726,000
290 Berkshire Hathaway Class B (1) 888,850
4,500 Corporate Office Properties Trust SBI MD REIT 137,520
14,900 Equity Residential REIT 341,061
Shares Value $
- ---------- ------------
18,300 HCP REIT 401,685
4,600 Health Care REIT 156,722
27,250 Kimco Realty REIT 327,545
9,346 Liberty Property Trust REIT 227,482
5,000 Mack-Cali Realty REIT 134,300
6,371 National Health Investors REIT 170,870
5,500 National Retail Properties REIT 97,570
6,600 Nationwide Health Properties REIT 162,954
11,300 Omega Healthcare Investors REIT 177,636
16,401 Prologis REIT 149,413
4,841 Public Storage REIT 323,670
9,500 Realty Income REIT 212,135
9,000 Regency Centers REIT 337,050
7,600 Senior Housing Properties Trust REIT 124,564
227 Simon Property Group REIT 11,713
18,400 UDR REIT 185,288
4,033 Ventas REIT 115,505
3,700 Vornado Realty Trust REIT 180,893
12,700 Weingarten Realty Investors REIT 197,358
------------
8,264,058
HOME FURNITURE, FURNISHINGS & EQUIPMENT
STORES - 0.1%
16,381 Bed Bath & Beyond (1) 498,310
------------
INDUSTRIAL & COMMERCIAL MACHINERY/COMPUTER
EQUIPMENT - 7.3%
8,735 3M 503,136
2,812 AAON 54,778
27,239 Apple (1) 3,427,483
2,340 Black & Decker 94,302
27,508 Caterpillar 978,735
29,313 Cummins 996,642
6,600 Deere 272,316
124,599 Dell (1) 1,447,841
27,900 Dover 858,762
3,710 Eaton 162,498
42,600 EMC (1) 533,778
6,179 Flowserve 419,554
14,773 Graco 348,495
10,300 Graham 128,750
108,233 Hewlett-Packard 3,894,223
61,094 International Business Machines 6,305,512
22,400 ITT 918,624
4,676 Joy Global 119,238
19,528 Lam Research (1) 544,441
19,199 Lexmark International Class A (1) 376,684
22,900 Parker Hannifin 1,038,515
11,300 Sigma Designs (1) 145,996
22,267 Smith International 575,602
6,941 Stanley Works 263,966
10,900 Toro 331,142
19,776 Varian Medical Systems (1) 659,925
26,348 Western Digital (1) 619,705
------------
26,020,643
The accompanying notes are an integral part of the financial statements.
41
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
INSURANCE CARRIERS - 3.2%
26,213 Aetna 576,948
31,043 Aflac 896,832
7,400 Allstate 172,642
12,500 American Financial Group 219,750
4,042 Amerisafe (1) 62,085
18,166 Assurant 443,977
18,144 Chubb 706,709
8,159 CNA Surety (1) 157,061
10,404 Delphi Financial Group Class A 179,677
7,000 HCC Insurance Holdings 167,440
9,100 Lincoln National 102,284
13,568 Meadowbrook Insurance Group 80,730
42,053 MetLife 1,251,077
6,800 Odyssey Re Holdings 260,372
17,119 Principal Financial Group 279,724
23,130 Prudential Financial 667,994
5,101 Safety Insurance Group 168,588
8,659 Selective Insurance Group 127,807
7,300 StanCorp Financial Group 200,239
10,700 Torchmark 313,831
27,781 Travelers 1,142,910
77,750 UnitedHealth Group 1,828,680
21,200 Unitrin 360,400
26,834 Unum Group 438,468
14,584 WellPoint (1) 623,612
------------
11,429,837
LEATHER & LEATHER PRODUCTS - 0.1%
7,900 Genesco (1) 179,962
------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS - 2.8%
7,512 Alcon 691,179
14,800 Allergan 690,568
29,472 Baxter International 1,429,392
4,361 Becton Dickinson 263,753
7,073 CR Bard 506,639
52,503 Medtronic 1,680,096
7,909 MTS Systems 167,117
5,677 Neogen (1) 128,698
4,000 ResMed (1) 153,800
14,065 Rockwell Collins 539,393
4,600 Roper Industries 209,714
32,135 St. Jude Medical (1) 1,077,165
14,146 STERIS 340,919
17,599 Stryker 681,257
6,700 Teledyne Technologies (1) 213,931
10,008 Waters (1) 442,053
15,951 Zimmer Holdings (1) 701,685
------------
9,917,359
METAL MINING - 0.3%
17,011 FreeportMcMoRan Copper & Gold 725,519
9,195 Newmont Mining 370,007
------------
1,095,526
Shares Value $
- ---------- ------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 0.2%
10,603 Hasbro 282,676
25,427 Mattel 380,388
------------
663,064
MISCELLANEOUS RETAIL - 1.9%
10,006 Amazon.com (1) 805,683
4,200 Amerigas Partners LP 128,982
54,917 CVS/Caremark 1,745,262
14,800 Inergy LP 341,880
6,300 MSC Industrial Direct 257,355
7,445 NutriSystem 102,294
21,317 PetSmart 487,733
48,600 Staples 1,002,132
50,241 Walgreen 1,579,075
5,303 World Fuel Services 202,204
------------
6,652,600
MOTION PICTURES - 0.9%
48,045 Time Warner 1,048,822
90,772 Walt Disney 1,987,907
------------
3,036,729
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING - 0.5%
7,538 Forward Air 125,658
28,864 United Parcel Service Class B 1,510,742
------------
1,636,400
NON-DEPOSITORY CREDIT INSTITUTIONS - 0.5%
19,405 Advanta Class B 22,704
42,627 American Express 1,075,053
6,084 Asta Funding 17,522
68,818 Discover Financial Services 559,490
------------
1,674,769
OIL & GAS EXTRACTION - 3.7%
17,187 Apache 1,252,245
20,988 Baker Hughes 746,753
11,278 BJ Services 156,651
19,910 Chesapeake Energy 392,426
26,281 Devon Energy 1,362,670
6,014 Diamond Offshore Drilling 435,474
15,652 ENSCO International 442,638
50,037 Halliburton 1,011,748
7,671 Helmerich & Payne 236,420
23,984 Noble 655,483
16,500 Noble Energy 936,375
39,433 Occidental Petroleum 2,219,684
28,962 Patterson-UTI Energy 368,107
6,304 Rowan 98,405
27,572 Schlumberger 1,350,752
5,891 Ultra Petroleum (1) 252,135
18,671 Weatherford International (1) 310,499
30,318 XTO Energy 1,050,822
------------
13,279,287
The accompanying notes are an integral part of the financial statements.
42
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
PAPER & ALLIED PRODUCTS - 0.0%
3,865 Bemis 92,915
1,700 Rock-Tenn Class A 64,192
------------
157,107
PERSONAL SERVICES - 0.0%
15,559 Jackson Hewitt Tax Service 76,084
2,200 Unifirst 82,038
------------
158,122
PETROLEUM REFINING - 6.6%
89,420 Chevron 5,910,662
48,159 ConocoPhillips 1,974,519
17,347 Enterprise Products Partners LP 409,216
193,674 Exxon Mobil 12,912,246
13,565 Hess 743,226
6,600 Marathon Oil 196,020
18,520 Murphy Oil 883,589
10,085 Sunoco 267,353
19,369 Valero Energy 384,281
------------
23,681,112
PIPELINES, EXCEPT NATURAL GAS - 0.2%
10,700 Buckeye Partners LP 411,522
4,000 Sunoco Logistics Partners LP 208,360
5,800 TEPPCO Partners LP 157,934
------------
777,816
PRIMARY METAL INDUSTRIES - 1.2%
10,911 Allegheny Technologies 357,117
7,500 Brush Engineered Materials (1) 126,900
95,637 Corning 1,398,213
8,400 Hubbell 278,880
26,942 Nucor 1,096,270
13,100 Precision Castparts 980,666
------------
4,238,046
PRINTING, PUBLISHING & ALLIED INDUSTRIES - 0.6%
5,461 John Wiley & Sons Class A 185,128
30,693 McGraw-Hill 925,394
9,800 Meredith 245,784
27,500 Thomson Reuters 772,148
------------
2,128,454
RAILROAD TRANSPORTATION - 0.5%
19,034 Burlington Northern Santa Fe 1,284,415
4,366 CSX 129,190
14,693 Norfolk Southern 524,246
------------
1,937,851
REAL ESTATE - 0.1%
5,700 Jones Lang LaSalle 183,939
------------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS - 0.0%
11,200 Schulman A 175,728
------------
Shares Value $
- ---------- ------------
SECURITY & COMMODITY BROKERS, DEALERS,
EXCHANGES & SERVICES - 2.0%
11,400 AllianceBernstein Holding LP 199,728
19,800 Ameriprise Financial 521,730
2,262 BlackRock 331,428
23,497 Broadridge Financial Solutions 454,667
21,786 Charles Schwab 402,605
800 CME Group 177,080
21,300 Federated Investors 487,344
62,800 GFI Group 256,224
10,923 Goldman Sachs Group 1,403,606
58,600 Morgan Stanley 1,385,304
18,015 Raymond James Financial 282,655
9,100 SWS Group 116,389
18,500 T Rowe Price Group 712,620
22,100 Waddell & Reed Financial 495,261
------------
7,226,641
STONE, CLAY, GLASS, AND CONCRETE PRODUCTS - 0.1%
20,500 Apogee Enterprises 274,700
------------
TOBACCO PRODUCTS - 1.1%
50,112 Altria Group 818,329
900 Lorillard 56,817
80,691 Philip Morris International 2,921,014
------------
3,796,160
TRANSPORTATION BY AIR - 0.0%
10,800 Republic Airways Holdings (1) 77,328
------------
TRANSPORTATION EQUIPMENT - 2.2%
7,476 Boeing 299,414
27,447 General Dynamics 1,418,187
20,000 Goodrich 885,600
12,059 Harsco 332,225
52,691 Honeywell International 1,644,486
24,556 Lockheed Martin 1,928,383
24,195 United Technologies 1,181,684
2,568 WABCO Holdings 41,062
------------
7,731,041
TRANSPORTATION SERVICES - 0.2%
8,555 Ambassadors Group 104,371
11,818 CH Robinson Worldwide 628,245
------------
732,616
WATER TRANSPORTATION - 0.3%
35,833 Carnival 963,191
3,797 Overseas Shipholding Group 109,012
------------
1,072,203
WHOLESALE TRADE NON-DURABLE GOODS - 1.4%
18,651 AmerisourceBergen 627,420
7,200 Brown-Forman Class B 334,800
14,994 Cardinal Health 506,647
The accompanying notes are in integral part of the financial statements.
43
SCHRODER NORTH AMERICAN EQUITY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
5,816 Endo Pharmaceuticals Holdings (1) 96,197
27,703 McKesson 1,025,011
19,683 Nike Class B 1,032,767
11,100 Spartan Stores 180,597
51,374 SYSCO 1,198,555
6,735 United Natural Foods (1) 153,423
------------
5,155,417
WHOLESALE TRADE-DURABLE GOODS - 0.7%
19,128 Fastenal 733,750
13,733 Ingram Micro Class A (1) 199,403
6,210 Pool 110,911
10,800 PSS World Medical (1) 156,816
13,881 Reliance Steel & Aluminum 489,028
9,632 WW Grainger 807,932
------------
2,497,840
------------
Total United States 321,289,667
------------
TOTAL COMMON STOCK
(Cost $454,239,940) 355,035,690
------------
RIGHTS - 0.0%
UNITED STATES - 0.0%
7,363 Fresenius Kabi Pharmaceuticals
Holding Expires 06/11 (1)
(Cost $7,363) 2,577
------------
Shares Value $
- ---------- ------------
SHORT-TERM INVESTMENT (5) - 0.3%
1,236,930 JPMorgan U.S. Government Money Market Fund, 0.270%
(Cost $1,236,930) 1,236,930
------------
TOTAL INVESTMENTS - 99.8%
(Cost $455,484,233) 356,275,197
------------
OTHER ASSETS LESS LIABILITIES - 0.2% 621,172
------------
NET ASSETS 100.0% $356,896,369
============
(1) Denotes non-income producing security.
(2) Security considered illiquid. On April 30, 2009, the value of this security
amounted to $110,944 representing less than 0.1% 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, 2009, the value of this
security amounted to $110,944, representing less than 0.1% of the net
assets of the Fund.
(4) Security is fair valued.
(5) The rate shown represents the 7-day current yield as of April 30, 2009.
ADR - American Depositary Receipt
CAD - Canadian Dollar
LP - Limited Partnership
REIT - Real Estate Investment Trust
USD - United States Dollar
FORWARD FOREIGN CURRENCY CONTRACTS -- The Portfolio had the following forward
foreign currency contracts outstanding as of April 30, 2009:
SETTLEMENT NET UNREALIZED
DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE DEPRECIATION
- ---------- ------------------- ------------------- --------------
06/05/2009 CAD 3,856,232 USD 3,119,146 $(112,965)
=========
The accompanying notes are in integral part of the financial statements.
44
SCHRODER TOTAL RETURN FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Principal
Amount $ Value $
- ---------- ------------
U.S. GOVERNMENT MORTGAGE BACKED OBLIGATIONS - 45.3%
1,786,522 FHLMC
5.000%, 11/01/36 1,839,732
FHLMC Gold
326,161 6.500%, 07/01/32 349,151
24,553 6.000%, 12/01/28 25,910
565,498 5.000%, 07/01/33 583,225
1,909,295 5.000%, 08/01/33 1,969,145
243,066 4.500%, 03/01/19 250,775
43 FHLMC IO (1)
1,138.011%, 01/15/22 752
FNMA
117,518 7.500%, 12/01/29 128,288
847 7.000%, 12/01/10 851
665,050 6.648%, 01/01/37 (2) 697,061
4,545,499 6.000%, 05/01/38 4,756,880
168,119 6.000%, 12/01/28 177,802
260,077 6.000%, 10/01/29 274,732
248,728 5.500%, 10/01/32 258,935
282,942 5.500%, 01/01/33 294,553
2,400,113 5.500%, 07/01/33 2,497,100
4,864,427 5.500%, 10/01/35 5,057,196
3,050,679 5.500%, 12/01/35 3,171,572
3,773,121 5.000%, 06/01/35 3,891,396
5,476,857 5.000%, 11/01/35 5,645,117
640,117 4.500%, 10/01/33 653,865
FNMA TBA
5,880,000 6.500%, 06/25/39 6,207,998
5,470,000 4.500%, 06/25/39 5,548,631
GNMA
24,728 8.000%, 11/15/17 26,256
17,135 8.000%, 06/15/26 18,666
124,854 7.000%, 09/15/23 133,510
1,120,283 5.500%, 11/15/38 1,165,940
4,610,820 GNMA IO (2)
5.853%, 12/20/34 395,659
650,000 GNMA TBA
4.500%, 05/15/39 662,797
------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $45,678,560) 46,683,495
------------
CORPORATE OBLIGATIONS - 23.7%
325,000 Abbott Laboratories
5.125%, 04/01/19 333,339
185,000 Amgen
6.400%, 02/01/39 186,819
560,000 Anheuser-Busch InBev Worldwide (3)
7.750%, 01/15/19 587,304
290,000 ArcelorMittal
6.125%, 06/01/18 234,080
Principal
Amount $ Value $
- ---------- ------------
AT&T
340,000 6.550%, 02/15/39 328,028
450,000 5.800%, 02/15/19 458,392
255,000 Atmos Energy
8.500%, 03/15/19 270,703
Bank of America
1,185,000 6.100%, 06/15/17 927,265
575,000 2.100%, 04/30/12 579,070
205,000 Barclays Bank
5.450%, 09/12/12 208,392
250,000 BAT International Finance (3)
9.500%, 11/15/18 284,532
175,000 Bombardier (3)
8.000%, 11/15/14 154,000
650,000 Chubb
6.500%, 05/15/38 596,733
215,000 Cisco Systems
4.950%, 02/15/19 219,245
665,000 Comcast
6.400%, 05/15/38 625,333
185,000 Connecticut Light & Power
5.500%, 02/01/19 187,784
90,000 ConocoPhillips
5.750%, 02/01/19 92,045
355,000 Consumers Energy
6.700%, 09/15/19 375,366
450,000 COX Communications
5.450%, 12/15/14 420,342
230,000 Credit Suisse NY
5.500%, 05/01/14 230,839
CVS/Caremark
375,000 6.600%, 03/15/19 397,397
450,000 5.750%, 06/01/17 453,007
135,000 El Paso
8.250%, 02/15/16 132,300
135,000 Eli Lilly
5.950%, 11/15/37 132,271
440,000 EnCana
6.500%, 05/15/19 452,716
310,000 Energy Transfer Partners
9.000%, 04/15/19 338,843
1,970,000 General Electric Capital
2.200%, 06/08/12 1,983,806
265,000 General Mills
5.650%, 02/15/19 271,062
140,000 Goodyear Tire & Rubber (2)
6.317%, 12/01/09 138,775
190,000 HCA
9.250%, 11/15/16 188,575
380,000 HSBC Holdings
6.800%, 06/01/38 335,537
275,000 ING Bank (3)
5.125%, 05/01/15 242,302
150,000 Intelsat (3)
9.250%, 06/15/16 145,500
The accompanying notes are an integral part of the financial statements.
45
SCHRODER TOTAL RETURN FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
Principal
Amount $ Value $
- ---------- ------------
1,210,000 JPMorgan Chase Bank
5.875%, 06/13/16 1,122,496
285,000 Kimberly-Clark
7.500%, 11/01/18 333,722
Kraft Foods
260,000 6.500%, 11/01/31 243,014
80,000 6.125%, 08/23/18 81,409
340,000 Marathon Oil
7.500%, 02/15/19 356,872
135,000 Massey Energy
6.875%, 12/15/13 115,762
390,000 McDonald's
6.300%, 03/01/38 393,853
80,000 McKesson
7.500%, 02/15/19 86,341
505,000 Midamerican Energy Holdings
5.750%, 04/01/18 503,266
125,000 Nevada Power, Series L
5.875%, 01/15/15 121,035
325,000 News America
6.650%, 11/15/37 258,679
550,000 ONEOK Partners
8.625%, 03/01/19 559,929
105,000 Oracle
5.750%, 04/15/18 111,437
150,000 Pemex Project Funding Master Trust
5.750%, 03/01/18 136,500
Pfizer
250,000 7.200%, 03/15/39 275,575
225,000 6.200%, 03/15/19 242,267
315,000 Plains All American Pipeline
8.750%, 05/01/19 323,493
270,000 PNC Bank
6.875%, 04/01/18 257,556
165,000 Qwest
7.625%, 06/15/15 157,162
Rio Tinto Finance USA
190,000 9.000%, 05/01/19 195,676
125,000 8.950%, 05/01/14 129,515
340,000 Rogers Communications
6.800%, 08/15/18 356,901
120,000 Sprint Capital
8.375%, 03/15/12 115,650
265,000 Staples
9.750%, 01/15/14 291,078
330,000 Sysco
5.375%, 03/17/19 338,393
160,000 Telecom Italia Capital
7.721%, 06/04/38 140,072
550,000 Time Warner Cable
5.850%, 05/01/17 529,676
440,000 US Bank
4.950%, 10/30/14 437,699
260,000 Verizon Communications
5.250%, 04/15/13 273,042
Principal
Amount $ Value $
- ---------- ------------
430,000 Verizon Wireless Capital LLC (3)
8.500%, 11/15/18 515,844
160,000 Viacom
6.250%, 04/30/16 148,462
310,000 Virginia Electric and Power
8.875%, 11/15/38 402,276
665,000 Wells Fargo
5.625%, 12/11/17 621,022
200,000 Whirlpool
8.600%, 05/01/14 205,258
335,000 Williams (3)
8.750%, 01/15/20 344,809
600,000 Xerox
6.350%, 05/15/18 486,783
695,000 XTO Energy
6.500%, 12/15/18 707,604
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $24,049,690) 24,431,830
------------
U.S. TREASURY OBLIGATIONS (4) - 10.2%
1,310,000 U.S. Treasury Bond
4.500%, 05/15/38 1,410,093
U.S. Treasury Notes
160,000 4.375%, 02/15/38 168,200
465,000 2.750%, 02/15/19 450,540
2,120,000 1.875%, 04/30/14 2,105,584
5,795,000 1.750%, 03/31/14 5,731,620
690,000 0.875%, 04/30/11 689,623
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $10,674,265) 10,555,660
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 5.4%
2,235,000 FHLB
1.375%, 05/16/11 2,237,586
FHLMC
355,000 3.750%, 03/27/19 356,463
2,800,000 0.703%, 09/29/09 (5) 2,797,648
125,000 FNMA
4.250%, 05/15/09 125,190
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,504,877) 5,516,887
------------
COMMERCIAL MORTGAGE-BACKED OBLIGATION - 1.5%
1,780,000 Wachovia Bank Commercial Mortgage Trust,
Series 2005-C19, Class A5
4.661%, 05/15/44
(Cost $1,535,446) 1,561,985
------------
The accompanying notes are an integral part of the financial statements.
46
SCHRODER TOTAL RETURN FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
Principal
Amount $ Value $
- ---------- ------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.1%
50,893 Residential Accredit Loans, Series 1999-QS4,
Class A1
6.250%, 03/25/14 51,289
18,390 Salomon Brothers Mortgage Securities VII,
Series 2001-CPB1, Class A (2)
5.107%, 12/25/30 16,180
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $69,830) 67,469
------------
ASSET-BACKED SECURITY - 0.0%
16,109 Hedged Mutual Fund Fee Trust, Series 2003-2,
Class 2 (1)(2)(3)(6) 4.840%, 03/02/11
(Cost $16,086) 15,625
------------
Shares
- ----------
SHORT-TERM INVESTMENT (7) - 10.7%
10,999,591 JPMorgan U.S. Government Money
Market Fund, 0.270%
(Cost $10,999,591) 10,999,591
------------
TOTAL INVESTMENTS - 96.9%
(Cost $98,528,345) 99,832,542
------------
OTHER ASSETS LESS LIABILITIES - 3.1% 3,164,967
------------
NET ASSETS - 100.0% $102,997,509
============
(1) Security considered illiquid. On April 30, 2009 the value of these
securities amounted to $16,377 representing less than 0.1% of the net
assets of the Fund.
(2) Variable Rate Security - Rate disclosed is as of April 30, 2009.
(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, 2009, the value of these
securities amounted to $2,289,916, representing 2.2% of the net assets of
the Fund.
(4) Security, or portion of the security, has been pledged as collateral on
open derivative positions and mortgage dollar rolls.
(5) Zero Coupon Security Rate - disclosed is the effective yield at time of
purchase.
(6) Security is considered restricted.
(7) The rate shown represents the 7-day current yield as of April 30, 2009.
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
IO - Interest Only Security
LLC - Limited Liability Company
TBA - To Be Announced
FUTURES CONTRACTS -- The Portfolio had the following futures contracts
outstanding as of April 30, 2009:
NET
NUMBER UNREALIZED
OF EXPIRATION APPRECIATION/
CONTRACTS VALUE DATE (DEPRECIATION)
--------- --------- ---------- --------------
LONG:
Long Gilt 10 Year 9 1,604,340 Jun-09 $(39,494)
U.S. Long Bond 2 245,125 Jun-09 (8,222)
--------
$(47,716)
--------
SHORT:
U.S. Treasury 2 Year Note 4 (870,188) Jun-09 $ 1,305
U.S. Treasury 5 Year Note 6 (702,844) Jun-09 1,724
U.S. Treasury 10 Year Note 5 (604,688) Jun-09 15,616
--------
$ 18,645
--------
$(29,071)
========
The accompanying notes are an integral part of the financial statements.
47
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
Shares Value $
- ---------- ------------
FIXED INCOME - 37.4%
CORPORATE BOND - 15.4%
8,948 iShares iBoxx Investment Grade
Corporate Bond Fund 860,798
------------
EMERGING MARKET BONDS - 7.9%
36,604 PIMCO Emerging Markets Bond Fund 325,778
5,087 PowerShares Emerging Markets Sovereign Debt
Portfolio 116,289
------------
442,067
HIGH YIELD BOND - 11.2%
111,392 Goldman Sachs High Yield Fund 628,248
------------
U.S. GOVERNMENT - 2.9%
1,639 iShares Barclays TIPS Bond Fund 164,621
------------
TOTAL FIXED INCOME
(Cost $2,158,644) 2,095,734
------------
EQUITIES - 36.9%
DOMESTIC EQUITY - 20.4%
142,346 Schroder U.S. Small and Mid Cap Opportunities
Fund + 1,140,192
------------
INTERNATIONAL EQUITIES - 16.5%
8,285 iShares MSCI Pacific ex-Japan Index Fund 230,074
31,064 Schroder Emerging Market Equity Fund+ 255,036
16,543 Schroder International Alpha Fund+ 111,497
57,855 Schroder International Diversified Value Fund + 329,774
------------
926,381
------------
TOTAL EQUITIES
(Cost $2,028,286) 2,066,573
------------
ABSOLUTE RETURN - 4.9%
17,035 Highbridge Statistical Market Neutral Select Fund,
Class A
(Cost $272,394) 272,735
------------
INFRASTRUCTURE - 4.1%
132,338 HSBC Infrastructure
(Cost $225,791) 230,331
------------
REAL ESTATE - 4.1%
3,035 iShares Dow Jones U.S. Real Estate Index Fund 100,216
5,865 iShares S&P World ex-U.S. Property Index Fund 127,915
------------
TOTAL REAL ESTATE
(Cost $379,849) 228,131
------------
Shares Value $
- ---------- ------------
COMMODITY - 3.5%
31,052 PIMCO Commodity RealReturn Strategy Fund
(Cost $199,958) 198,114
------------
PRIVATE EQUITY - 1.3%
4,036 PowerShares International Listed Private Equity
Portfolio 36,647
5,534 PowerShares Listed Private Equity Portfolio 36,967
------------
TOTAL PRIVATE EQUITY
(Cost $109,057) 73,614
------------
SHORT-TERM INVESTMENT (1) - 4.8%
270,031 JPMorgan U.S. Government Money Market Fund, 0.270%
(Cost $270,031) 270,031
------------
TOTAL INVESTMENTS - 97.0%
(Cost $5,644,010) 5,435,263
------------
OTHER ASSETS LESS LIABILITIES - 3.0% 168,356
------------
NET ASSETS - 100.0% $ 5,603,619
============
+ Investment in affiliated security.
(1) The rate shown represents the 7-day current yield as of April 30, 2009.
MSCI - Morgan Stanley Capital International
S&P - Standard & Poor's
AUD - Australian Dollar
EUR - Euro
JPY - Japanese Yen
NOK - Norwegian Krone
USD - United States Dollar
The accompanying notes are an integral part of the financial statements.
48
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONCLUDED)
APRIL 30, 2009 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS -- The Portfolio had the following forward
foreign currency contracts outstanding as of April 30, 2009:
NET UNREALIZED
SETTLEMENT APPRECIATION/
DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE (DEPRECIATION)
- ---------- ------------------- ------------------- --------------
06/19/2009 USD 112,996 AUD 160,841 $ 3,839
06/19/2009 USD 109,820 NOK 738,981 2,743
05/22/2009 JPY 41,254,081 USD 439,420 21,064
06/19/2009 EUR 95,288 USD 125,649 (360)
-------
$27,286
=======
FUTURES CONTRACTS -- The Portfolio had the following futures contracts
outstanding as of April 30, 2009:
NUMBER NET UNREALIZED
OF EXPIRATION APPRECIATION/
CONTRACTS VALUE DATE (DEPRECIATION)
--------- ----------- ---------- --------------
LONG:
FTSE 100 Index 6 $ 373,104 Jun-09 $ 53,700
Euro Bund 1 162,034 Jun-09 1,562
S&P 500 E-Mini 19 826,500 Jun-09 85,038
---------
$ 140,300
---------
SHORT:
Russell Mini 21 $(1,022,070) Jun-09 $(199,910)
U.S. Treasury 10 Year Note 5 (604,688) Jun-09 6,030
---------
$(193,880)
---------
$ (53,580)
=========
The accompanying notes are an integral part of the financial statements.
49
SCHRODER MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2009 (UNAUDITED)
INTERNATIONAL EMERGING
INTERNATIONAL DIVERSIFIED MARKET
ALPHA VALUE EQUITY
FUND FUND FUND
------------- ------------- -----------
ASSETS
Investments in securities, at value -- Note 2 .............. $ 44,644,881 $ 7,368,178 $20,557,123
Foreign Currency ........................................... 7 72,275 53,057
Receivable for securities sold ............................. 31,305 211,341 210,026
Receivable for Fund shares sold ............................ 91,500 -- 251,058
Dividends and tax reclaims receivable ...................... 232,219 54,075 70,272
Prepaid expenses ........................................... 40,335 32,482 36,130
Due from Investment Advisor -- Note 3 ...................... 28,024 27,989 13,644
Unrealized appreciation on spot contracts .................. -- 318 1,400
Initial margin for futures contracts ....................... -- -- --
Interest receivable ........................................ -- -- --
Variation margin receivable ................................ -- -- --
------------ ----------- -----------
TOTAL ASSETS ............................................ 45,068,271 7,766,658 21,192,710
LIABILITIES
Payable for securities purchased ........................... 165,389 304,376 546,018
Unrealized depreciation on spot foreign currency
contracts ............................................... 2 721 69
Variation margin payable ................................... -- -- --
Income distributions payable ............................... -- -- --
Unrealized depreciation on forward foreign currency
contracts ............................................... -- -- --
Payable for Fund shares redeemed ........................... 39,388 -- --
Investment Advisory fees payable -- Note 3 ................. -- -- --
Sub-administration fees payable -- Note 3 .................. 4,529 744 1,987
Trustees' fees payable -- Note 5 ........................... 3,891 2,727 2,956
Distribution fees payable, Advisor Shares -- Note 3 ........ 5,753 163 243
Accrued expenses and other liabilities ..................... 101,972 77,627 109,373
------------ ----------- -----------
TOTAL LIABILITIES ....................................... 320,924 386,358 660,646
------------ ----------- -----------
NET ASSETS ................................................. $ 44,747,347 $ 7,380,300 $20,532,064
============ =========== ===========
NET ASSETS
Capital paid-in ............................................ $ 69,523,634 $13,501,349 $28,377,776
Undistributed (distributions in excess of) net
investment income ....................................... 249,610 37,728 69,368
Accumulated net realized gain (loss) on investments,
futures and foreign currency transactions ............... (18,695,465) (3,481,749) (6,427,768)
Net unrealized appreciation (deprecation) on
investments ............................................. (6,327,668) (2,677,471) (1,489,243)
Net unrealized depreciation on futures ..................... -- -- --
Net unrealized appreciation (deprecation) on
forward foreign currency contracts and foreign
currency translations ................................... (2,764) 443 1,931
------------ ----------- -----------
NET ASSETS ................................................. $ 44,747,347 $ 7,380,300 $20,532,064
============ =========== ===========
Investor Shares:
Net assets ................................................. $ 14,523,067 $ 6,584,798 $19,825,068
Total shares outstanding at end of period .................. 2,153,617 1,155,972 2,415,906
Net asset value, offering and redemption price per share
(net assets / shares outstanding) ....................... $ 6.74 $ 5.70 $ 8.21
Advisor Shares:
Net assets ................................................. $ 30,224,280 $ 795,502 $ 706,996
Total shares outstanding at end of period .................. 4,486,465 139,655 86,385
Net asset value, offering and redemption price per share
(net assets / shares outstanding) ....................... $ 6.74 $ 5.70 $ 8.18
Cost of securities ............................................ $ 50,972,549 $10,045,649 $22,046,366
Cost of foreign currency ...................................... $ 7 $ 70,763 $ 51,235
The accompanying notes are an integral part of the financial statements.
50
U.S. SMALL NORTH
U.S. AND MID CAP AMERICAN TOTAL RETURN
OPPORTUNITIES OPPORTUNITIES EQUITY FIXED INCOME
FUND FUND FUND FUND
- ------------- ------------- ------------- ------------
$145,581,774 $20,221,791 $ 356,275,197 $ 99,832,542
-- -- -- --
2,173,279 -- 9,294,003 32,007,052
124,458 259,831 -- 9,022,259
87,040 5,530 539,039 --
65,106 38,183 100,956 53,870
-- 8,284 -- 13,847
-- -- 118,425 --
-- -- -- 70,812
-- -- -- 690,381
-- -- -- 1,031
- ------------ ----------- ------------- ------------
148,031,657 20,533,619 366,327,620 141,691,794
1,020,715 298,399 2,777,117 38,283,176
853 -- 124,089 --
-- -- -- 7,260
-- -- -- 285,862
-- -- 112,965 --
62,701 4,369 6,177,715 26,131
115,380 -- 72,894 --
14,879 1,964 3,791 10,055
6,642 3,033 12,191 4,863
650 115 29 1,396
97,273 68,976 150,460 75,542
- ------------ ----------- ------------- ------------
1,319,093 376,856 9,431,251 38,694,285
- ------------ ----------- ------------- ------------
$146,712,564 $20,156,763 $ 356,896,369 $102,997,509
============ =========== ============= ============
$190,410,877 $22,767,306 $ 573,496,868 $101,752,582
(209,066) (4,647) 1,955,988 (38,876)
(31,753,138) (2,684,744) (119,232,222) 6,798
(11,736,665) 78,848 (99,209,036) 1,304,197
-- -- -- (29,071)
556 -- (115,229) 1,879
- ------------ ----------- ------------- ------------
$146,712,564 $20,156,763 $ 356,896,369 $102,997,509
============ =========== ============= ============
$144,513,392 $19,419,151 $ 356,802,652 $ 97,291,014
9,376,160 2,423,693 53,160,584 9,804,477
$ 15.41 $ 8.01 $ 6.71 $ 9.92
$ 2,199,172 $ 737,612 $ 93,717 $ 5,706,495
143,550 92,756 13,970 574,558
$ 15.32 $ 7.95 $ 6.71 $ 9.93
$157,318,439 $20,142,943 $ 455,484,233 $ 98,528,345
$ -- $ -- $ -- $ --
The accompanying notes are an integral part of the financial statements.
51
SCHRODER MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2009 (UNAUDITED)
MULTI-ASSET
GROWTH
PORTFOLIO
------------
ASSETS
Investments in securities, at value -- Note 2 ........................................ $ 3,598,764
Investments in affiliated securities, at value -- Note 2 ............................. 1,836,499
Cash ................................................................................. 167
Foreign currency ..................................................................... 163
Initial margin for futures contracts ................................................. 160,077
Unrealized appreciation on forward foreign currency contracts ........................ 27,646
Dividends and tax reclaims receivable ................................................ 7,485
Prepaid expenses ..................................................................... 42,497
Due from Investment Advisor -- Note 3 ................................................ 20,379
Variation margin receivable .......................................................... 10,477
------------
TOTAL ASSETS ...................................................................... 5,704,154
LIABILITIES
Unrealized depreciation on forward foreign currency contracts ........................ 360
Variation margin payable ............................................................. 727
Payable for Fund shares redeemed ..................................................... 357
Trustees' fees payable -- Note 5 ..................................................... 2,828
Sub-administration fees payable -- Note 3 ............................................ 607
Distribution fees payable, A Shares -- Note 3 ........................................ 723
Distribution fees payable, Advisor Shares -- Note 3 .................................. 488
Distribution fees payable, R Shares -- Note 3 ........................................ 132
Accrued expenses and other liabilities ............................................... 94,313
------------
TOTAL LIABILITIES ................................................................. 100,535
------------
NET ASSETS ........................................................................... $ 5,603,619
============
NET ASSETS
Capital paid-in ...................................................................... $ 17,191,734
Distributions in excess of net investment income ..................................... (158,343)
Accumulated net realized loss on investments, futures, swap contracts and
foreign currency transactions ..................................................... (11,194,731)
Net unrealized depreciation on investments ........................................... (208,747)
Net unrealized deprecation on futures ................................................ (53,580)
Net unrealized appreciation on forward foreign currency contracts and foreign
currency translations ............................................................. 27,286
------------
NET ASSETS ........................................................................... $ 5,603,619
============
Investor Shares:
Net assets ........................................................................... $ 415,093
Total shares outstanding at end of period ............................................ 63,427
Net asset value, offering and redemption price per share (net assets / shares
outstanding) ...................................................................... $ 6.54
A Shares:
Net assets ........................................................................... $ 2,217,931
Total shares outstanding at end of period ............................................ 338,624
Net asset value and redemption price per share (net assets / shares outstanding) ..... $ 6.55
Maximum offering price per share (A Shares NAV/95.5%) ................................ $ 6.86
Advisor Shares:
Net assets ........................................................................... $ 2,626,890
Total shares outstanding at end of period ............................................ 401,450
Net asset value, offering and redemption price per share (net assets / shares
outstanding) ...................................................................... $ 6.54
R Class Shares:
Net assets ........................................................................... $ 343,705
Total shares outstanding at end of period ............................................ 52,535
Net asset value, offering and redemption price per share (net assets / shares
outstanding) ...................................................................... $ 6.54
Cost of securities ...................................................................... $ 3,862,487
Cost of affiliated securities ........................................................... $ 1,781,523
Cost of foreign currency ................................................................ $ 163
The accompanying notes are an integral part of the financial statements.
52
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SCHRODER MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED)
INTERNATIONAL
INTERNATIONAL DIVERSIFIED
ALPHA VALUE
FUND FUND
------------- -------------
INVESTMENT INCOME
Dividend income .................................................................... $ 665,761 $ 175,302
Interest income .................................................................... 4,068 96
Foreign taxes withheld ............................................................. (74,536) (20,813)
------------ -----------
TOTAL INCOME .................................................................... 595,293 154,585
------------ -----------
EXPENSES
Investment Advisory fees -- Note 3 ................................................. 187,264 35,911
Distribution fees, Advisor Shares -- Note 3 ........................................ 30,484 883
Distribution fees, A Shares -- Note 3 .............................................. -- --
Distribution fees, R Shares -- Note 3 .............................................. -- --
Sub-administration fees -- Note 3 .................................................. 20,539 3,790
Trustees fees -- Note 5 ............................................................ 9,592 7,760
Transfer agent fees ................................................................ 45,645 43,134
Registration fees .................................................................. 8,667 8,560
Audit fees ......................................................................... 18,825 11,931
Legal fees ......................................................................... 19,604 16,773
Custodian fees ..................................................................... 12,538 22,850
Insurance .......................................................................... 5,969 8,424
Printing expenses .................................................................. 7,886 8,700
Pricing fees ....................................................................... 5,881 29,005
Amortization of deferred offering costs -- Note 2 .................................. -- --
Other .............................................................................. 6,602 6,352
------------ -----------
TOTAL EXPENSES .................................................................. 379,496 204,073
Expenses waived by Investment Advisor -- Note 3 .................................... (128,160) (35,911)
Reimbursement from Investment Advisor .............................................. -- (125,987)
------------ -----------
NET EXPENSES .................................................................... 251,336 42,175
------------ -----------
NET INVESTMENT INCOME (LOSS) .................................................... 343,957 112,410
------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES,
SWAP CONTRACTS, FOREIGN CAPITAL GAINS TAX ON APPRECIATED
SECURITIES AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investments sold .............................................. (12,170,254) (3,360,125)
Net realized gain (loss) on futures ................................................ -- --
Net realized gain on swap contracts ................................................ -- --
Net realized gain (loss) on foreign currency transactions .......................... 30,625 601
------------ -----------
Net realized gain (loss) on investments, futures, swap contracts and
foreign currency transactions ................................................ (12,139,629) (3,359,524)
------------ -----------
Change in unrealized appreciation on investments ................................... 12,706,365 3,604,915
Change in unrealized appreciation (depreciation) on futures ........................ -- --
Change in unrealized appreciation on swap contracts ................................ -- --
Change in unrealized appreciation (depreciation) on foreign currency translations .. 5,888 1,548
------------ -----------
Net change in unrealized appreciation on investments, futures, swap contracts,
foreign capital gains tax on appreciated securities and foreign
currency translations ........................................................ 12,712,253 3,606,463
------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ............................................ 572,624 246,939
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................... $ 916,581 $ 359,349
============ ===========
(1) Includes affiliated income of $91,456.
+ Includes realized losses from in-kind transactions (see Note 6 in Notes to
Financial Statements).
The accompanying notes are an integral part of the financial statements.
54
EMERGING U.S. SMALL NORTH
MARKET U.S. AND MID CAP AMERICAN TOTAL RETURN MULTI-ASSET
EQUITY OPPORTUNITIES OPPORTUNITIES EQUITY FIXED INCOME GROWTH
FUND FUND FUND FUND FUND PORTFOLIO
- ----------- ------------- ------------- ------------ ------------ -----------
$ 222,889 $ 772,514 $ 77,092 $ 4,989,970 $ -- $ 333,756(1)
1,008 26,174 3,577 61,600 1,804,121 --
(22,207) (2,329) (169) (66,603) -- --
- ----------- ------------ ----------- ------------ ----------- -----------
201,690 796,359 80,500 4,984,967 1,804,121 333,756
- ----------- ------------ ----------- ------------ ----------- -----------
82,593 722,872 67,019 447,679 104,517 50,843
1,268 2,818 387 154 5,274 3,121
-- -- -- -- -- 12,984
-- -- -- -- -- 818
8,818 76,191 7,337 23,279 44,928 6,907
8,332 17,041 8,178 31,817 12,546 8,282
44,613 58,296 44,174 65,046 48,124 96,851
9,890 8,065 6,378 6,371 12,623 18,507
13,063 22,305 12,152 24,103 12,770 11,245
17,822 38,389 17,916 63,202 28,698 23,718
58,103 12,103 10,913 36,320 6,323 2,181
8,991 10,614 8,484 19,536 7,105 4,345
9,553 23,677 9,155 21,607 16,409 13,571
10,425 1,269 866 4,248 9,033 368
-- -- -- -- -- 7,342
6,729 11,785 8,867 20,932 8,860 6,308
- ----------- ------------ ----------- ------------ ----------- -----------
280,200 1,005,425 201,826 764,294 317,210 267,391
(82,593) -- (67,019) -- (104,517) (50,843)
(93,108) -- (64,054) -- (40,206) (114,900)
- ----------- ------------ ----------- ------------ ----------- -----------
104,499 1,005,425 70,753 764,294 172,487 101,648
- ----------- ------------ ----------- ------------ ----------- -----------
97,191 (209,066) 9,747 4,220,673 1,631,634 232,108
- ----------- ------------ ----------- ------------ ----------- -----------
(5,104,069) (24,088,041) (1,694,802) (63,031,708)+ (337,924) (7,085,989)
-- -- -- (13,375,039) 580,302 (863,812)
-- -- -- -- -- 23,109
(6,710) (1,963) (156) 512,369 (12,704) 137,161
- ----------- ------------ ----------- ------------ ----------- -----------
(5,110,779) (24,090,004) (1,694,958) (75,894,378) 229,674 (7,789,531)
- ----------- ------------ ----------- ------------ ----------- -----------
7,897,286 16,644,669 2,501,663 23,277,552 4,701,374 6,165,307
-- -- -- 6,229,374 (232,296) 330,399
-- -- -- -- -- 7,568
4,335 556 -- (440,170) 1,879 (169,032)
- ----------- ------------ ----------- ------------ ----------- -----------
7,901,621 16,645,225 2,501,663 29,066,756 4,470,957 6,334,242
- ----------- ------------ ----------- ------------ ----------- -----------
2,790,842 (7,444,779) 806,705 (46,827,622) 4,700,631 (1,455,289)
- ----------- ------------ ----------- ------------ ----------- -----------
$ 2,888,033 $ (7,653,845) $ 816,452 $(42,606,949) $ 6,332,265 $(1,223,181)
=========== ============ =========== ============ =========== ===========
The accompanying notes are an integral part of the financial statements.
55
SCHRODER MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED) AND THE YEAR ENDED
OCTOBER 31, 2008
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,
2009 2008 2009 2008
------------ ------------ ----------- -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............................... $ 343,957 $ 550,564 $ 112,410 $ 463,003
Net realized loss on investments sold, futures and
foreign currency transactions ........................... (12,139,629) (2,905,968) (3,359,524) (77,479)
Change in unrealized appreciation (depreciation) on
investments, foreign capital gains tax on appreciated
securities, futures and foreign currency translations ... 12,712,253 (26,381,404) 3,606,463 (8,037,344)
------------ ------------ ----------- -----------
Net increase (decrease) in net assets resulting
from operations ...................................... 916,581 (28,736,808) 359,349 (7,651,820)
------------ ------------ ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares ......................................... (172,598) (508,093) (353,167) (537,490)
Advisor Shares .......................................... (160,773) (450,753) (34,486) (68,816)
Net realized gains:
Investor Shares ......................................... -- -- -- (1,356,021)
Advisor Shares .......................................... -- -- -- (182,135)
------------ ------------ ----------- -----------
Total dividends and distributions ....................... (333,371) (958,846) (387,653) (2,144,462)
------------ ------------ ----------- -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ............................................ 419,825 3,434,641 12,597 2,456,897
Reinvestment of distributions .............................. 167,480 487,919 353,167 1,893,510
Redemption of shares ....................................... (1,810,946) (1,647,090) (1,013,946) (840,680)
Redemption fees -- Note 4 .................................. 2,697 456 -- 9,220
------------ ------------ ----------- -----------
Total increase (decrease) from Investor
Share transactions ................................... (1,220,944) 2,275,926 (648,182) 3,518,947
------------ ------------ ----------- -----------
ADVISOR SHARES:
Sales of shares ............................................ 18,223,410 4,787,976 1,106 617,410
Reinvestment of distributions .............................. 157,487 443,181 33,380 250,951
Redemption of shares ....................................... (4,315,143) (3,304,583) (22,934) (685,649)
Redemption fees -- Note 4 .................................. 12,889 8,118 8 1,079
------------ ------------ ----------- -----------
Total increase (decrease)
from Advisor Share transactions ...................... 14,078,643 1,934,692 11,560 183,791
------------ ------------ ----------- -----------
Net increase (decrease) in net assets
from share transactions .............................. 12,857,699 4,210,618 (636,622) 3,702,738
------------ ------------ ----------- -----------
Total increase (decrease) in net assets ................. 13,440,909 (25,485,036) (664,926) (6,093,544)
NET ASSETS
Beginning of Period ........................................ 31,306,438 56,791,474 8,045,226 14,138,770
------------ ------------ ----------- -----------
End of Period .............................................. $ 44,747,347 $ 31,306,438 $ 7,380,300 $ 8,045,226
============ ============ =========== ===========
Undistributed (accumulated net investment loss/
distributions in excess of ) net investment income ...... $ 249,610 $ 239,024 $ 37,728 $ 312,971
============ ============ =========== ===========
The accompanying notes are an integral part of the financial statements.
56
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,
2009 2008 2009 2008 2009 2008
- ----------- ------------ ------------ ------------- ----------- -----------
$ 97,191 $ 134,177 $ (209,066) $ (752,852) $ 9,747 $ (51,319)
(5,110,779) (1,248,748) (24,090,004) (7,389,086) (1,694,958) (939,808)
7,901,621 (18,297,059) 16,645,225 (78,583,302) 2,501,663 (4,102,063)
- ----------- ------------ ------------ ------------- ----------- -----------
2,888,033 (19,411,630) (7,653,845) (86,725,240) 816,452 (5,093,190)
- ----------- ------------ ------------ ------------- ----------- -----------
(14,779) (213,132) -- (355,955) -- --
-- (14,585) -- -- -- --
-- (3,019,681) -- (26,787,647) -- (612,596)
-- (258,346) -- (527,482) -- (85,590)
- ----------- ------------ ------------ ------------- ----------- -----------
(14,779) (3,505,744) -- (27,671,084) -- (698,186)
- ----------- ------------ ------------ ------------- ----------- -----------
9,372,257 7,851,055 5,754,680 19,012,384 9,751,716 7,480,540
14,779 3,232,813 -- 26,496,365 -- 612,596
(8,594,949) (1,250,000) (32,536,815) (56,895,681) (3,106,521) (789,624)
17,109 2 2,387 7,423 678 2,918
- ----------- ------------ ------------ ------------- ----------- -----------
809,196 9,833,870 (26,779,748) (11,379,509) 6,645,873 7,306,430
- ----------- ------------ ------------ ------------- ----------- -----------
435,349 4,579,468 82,589 604,435 617,209 126,537
-- 258,744 -- 512,281 -- 85,590
(959,974) (4,750,120) (1,045,911) (1,492,574) (151,537) (1,116,008)
1,154 136 -- -- 19 17
- ----------- ------------ ------------ ------------- ----------- -----------
(523,471) 88,228 (963,322) (375,858) 465,691 (903,864)
- ----------- ------------ ------------ ------------- ----------- -----------
285,725 9,922,098 (27,743,070) (11,755,367) 7,111,564 6,402,566
- ----------- ------------ ------------ ------------- ----------- -----------
3,158,979 (12,995,276) (35,396,915) (126,151,691) 7,928,016 611,190
17,373,085 30,368,361 182,109,479 308,261,170 12,228,747 11,617,557
- ----------- ------------ ------------ ------------- ----------- -----------
$20,532,064 $ 17,373,085 $146,712,564 $ 182,109,479 $20,156,763 $12,228,747
=========== ============ ============ ============= =========== ===========
$ 69,368 $ (13,044) $ (209,066) $ -- $ (4,647) $ (14,394)
=========== ============ ============ ============= =========== ===========
The accompanying notes are an integral part of the financial statements.
57
SCHRODER MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED) AND THE YEAR ENDED
OCTOBER 31, 2008
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,
2009 2008 2009 2008
------------- ------------- ------------ -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ...................................... $ 4,220,673 $ 12,999,196 $ 1,631,634 $ 2,990,052
Net realized gain (loss) on investments sold, futures
and foreign currency transactions ....................... (75,894,378)+ (35,386,078)+ 229,674 1,752,996
Change in unrealized appreciation (depreciation) on
investments, futures and foreign currency translations .. 29,066,756 (243,789,511) 4,470,957 (3,363,947)
------------- ------------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations ...................................... (42,606,949) (266,176,393) 6,332,265 1,379,101
------------- ------------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income:
Investor Shares ......................................... (12,818,379) (16,785,204) (1,605,312) (2,971,942)
Advisor Shares .......................................... (2,845) (2,383) (74,994) (33,034)
Net realized gains:
Investor Shares ......................................... -- (89,455,959) (1,793,854) (99,066)
Advisor Shares .......................................... -- (14,868) (38,598) (1,187)
------------- ------------- ------------ -----------
Total dividends and distributions ....................... (12,821,224) (106,258,414) (3,512,758) (3,105,229)
------------- ------------- ------------ -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ............................................ 16,077,117 38,329,322 30,732,836 1,104,079
Proceeds from shares sold in-kind .......................... -- -- -- --
Reinvestment of distributions .............................. 7,983,706 92,825,863 3,360,639 3,065,135
Redemption of shares ....................................... (14,210,695) (38,965,899) (11,867,231) (1,414,329)
Redemption of shares in-kind ............................... (84,561,824) (42,889,159) -- --
------------- ------------- ------------ -----------
Total increase (decrease) from
Investor Share transactions ............................. (74,711,696) 49,300,127 22,226,244 2,754,885
------------- ------------- ------------ -----------
ADVISOR SHARES:
Sales of shares ............................................ 2,000 20,513 6,913,470 298,999
Reinvestment of distributions .............................. 2,785 17,252 99,340 34,100
Redemption of shares ....................................... (1,995) -- (2,367,316) (166,091)
------------- ------------- ------------ -----------
Total increase from Advisor Share transactions .......... 2,790 37,765 4,645,494 167,008
------------- ------------- ------------ -----------
Net increase (decrease) in net assets
from share transactions ................................. (74,708,906) 49,337,892 26,871,738 2,921,893
------------- ------------- ------------ -----------
Total increase (decrease) in net assets .................... (130,137,079) (323,096,915) 29,691,245 1,195,765
NET ASSETS
Beginning of Period ........................................ 487,033,448 810,130,363 73,306,264 72,110,499
------------- ------------- ------------ -----------
End of Period .............................................. $ 356,896,369 $ 487,033,448 $102,997,509 $73,306,264
============= ============= ============ ===========
Undistributed (distributions in excess of)
net investment income ................................... $ 1,955,988 $ 10,556,539 $ (38,876) $ 9,796
============= ============= ============ ===========
+ Includes realized gains or losses from in-kind transactions (see Note 6 in
Notes to Financial Statements).
The accompanying notes are an integral part of the financial statements.
58
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED) AND THE PERIOD ENDED
OCTOBER 31, 2008
MULTI-ASSET
GROWTH PORTFOLIO
--------------------------
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31,
2009 2008(a)
------------ -----------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income ....................................................... $ 232,108 $ 407,589
Net realized loss on investments sold, futures, swap contracts and foreign
currency transactions .................................................... (7,789,531) (3,078,808)
Change in unrealized appreciation (depreciation) on investments, futures,
swap contracts, forward foreign currency contracts and foreign currency
translations ............................................................. 6,334,242 (6,569,283)
------------ -----------
Net decrease in net assets resulting from operations ..................... (1,223,181) (9,240,502)
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Investor Shares: ......................................................... (18,542) --
A Class Shares ........................................................... (130,497) --
Advisor Shares ........................................................... (624,442) --
R Class Shares ........................................................... (16,070) --
------------ -----------
Total dividends and distributions ........................................ (789,551) --
------------ -----------
SHARE TRANSACTIONS:
INVESTOR SHARES:
Sales of shares ............................................................. 61,037 503,269
Reinvestment of distributions ............................................... 18,542 --
------------ -----------
Total increase from Investor Share transactions .......................... 79,579 503,269
------------ -----------
A SHARES:
Sales of shares ............................................................. 94,510 26,439,738
Reinvestment of distributions ............................................... 585,002 --
Redemption of shares ........................................................ (14,977,180) (330,699)
Redemption fees -- Note 4 ................................................... 344 9,623
------------ -----------
Total increase (decrease) from A Share transactions ...................... (14,297,324) 26,118,662
------------ -----------
ADVISOR SHARES:
Sales of shares ............................................................. 4,250 3,801,850
Reinvestment of distributions ............................................... 130,497 --
Redemption of shares ........................................................ -- --
------------ -----------
Total increase in Advisor Share transactions ............................. 134,747 3,801,850
------------ -----------
R SHARES:
Sales of shares ............................................................. -- 500,000
Reinvestment of distributions ............................................... 16,070 --
Total increase in R Share transactions ................................... 16,070 500,000
Net increase (decrease) in net assets from share transactions ............ (14,066,928) 30,923,781
------------ -----------
Total increase (decrease) in net assets .................................. (16,079,660) 21,683,279
------------ -----------
NET ASSETS
Beginning of Period ......................................................... 21,683,279 --
------------ -----------
End of Period ............................................................... $ 5,603,619 $21,683,279
============ ===========
Undistributed (distributions in excess of ) net investment income ........... $ (158,343) $ 399,100
============ ===========
(a) Fund commenced investment activities on December 20, 2007.
The accompanying notes are an integral part of the financial statements.
59
SCHRODER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED) AND THE YEARS OR 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 TOTAL DIVIDENDS
VALUE, INVESTMENT UNREALIZED FROM FROM NET DISTRIBUTIONS
BEGINNING INCOME GAINS INVESTMENT INVESTMENT FROM NET TOTAL
OF PERIOD (LOSS) (LOSSES) OPERATIONS INCOME REALIZED GAIN DISTRIBUTIONS
--------- ---------- ---------- ---------- ---------- ------------- -------------
INTERNATIONAL ALPHA FUND
Investor Shares
2009* ...... $ 6.73 $ 0.06(1) $ 0.02+ $ 0.08 $(0.07) $ -- $(0.07)
2008 ....... 13.44 0.14(1) (6.61)+ (6.47) (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)
Advisor Shares
2009* ...... $ 6.71 $ 0.05(1) $ 0.03+ $ 0.08 $(0.05) $ -- $(0.05)
2008 ....... 13.40 0.11(1) (6.59)+ (6.48) (0.21) -- (0.21)
2007 ....... 10.64 0.07(1) 2.77+ 2.84 (0.08) -- (0.08)
2006(b) .... 10.23 --(e) 0.41+ 0.41 -- -- --
INTERNATIONAL DIVERSIFIED VALUE FUND
Investor Shares
2009* ...... $ 5.61 $ 0.08(1) $ 0.28 $ 0.36 $(0.27) $ -- $(0.27)
2008 ....... 13.65 0.37(1) (6.34)+ (5.97) (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
2009* ...... $ 5.59 $ 0.08(1) $ 0.28+ $ 0.36 $(0.25) $ -- $(0.25)
2008 ....... 13.62 0.34(1) (6.33)+ (5.99) (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
2009* ...... $ 6.99 $ 0.04(1) $ 1.19++ $ 1.23 $(0.01) $ -- $(0.01)
2008 ....... 17.91 0.11 (8.94)+ (8.83) (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
2009* ...... $ 6.97 $ 0.03(1) $ 1.18+ $ 1.21 $ -- $ -- $ --
2008 ....... 17.86 0.08 (8.91)+ (8.83) (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
2009* ...... $15.79 $(0.02)(1) $(0.36)+ $(0.38) $ -- $ -- $ --
2008 ....... 25.40 (0.06)(1) (7.22)+ (7.28) (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 -- -- --
Advisor Shares
2009* ...... $15.71 $(0.04)(1) $(0.35) $(0.39) $ -- $ -- $ --
2008 ....... 25.32 (0.11)(1) (7.20) (7.31) -- (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, 2009 (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 income (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.
60
RATIO OF NET
RATIO OF INVESTMENT
EXPENSES TO RATIO OF INCOME
AVERAGE EXPENSES TO (LOSS) TO
NET NET ASSETS AVERAGE AVERAGE
ASSET NET (INCLUDING NET ASSETS NET ASSETS
VALUE, ASSETS, WAIVERS AND (EXCLUDING (INCLUDING
END END OF REIMBURSEMENTS, WAIVERS, WAIVERS, PORTFOLIO
OF TOTAL PERIOD EXCLUDING REIMBURSEMENTS REIMBURSEMENTS TURNOVER
PERIOD RETURN(A) (000) OFFSETS) AND OFFSETS) AND OFFSETS) RATE
- ------ --------- -------- --------------- -------------- -------------- ---------
$ 6.74 1.31% $ 14,523 1.15% 1.83% 1.98% 44%
6.73 (48.95) 15,876 1.25 1.61 1.26 88
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
$ 6.74 1.32% $ 30,224 1.40% 2.06% 1.68% 44%
6.71 (49.04) 15,430 1.50 1.86 1.04 88
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
$ 5.70 6.98% $ 6,585 1.15% 5.65% 3.13% 58%
5.61 (50.61) 7,274 1.25 3.65 3.92 50
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
$ 5.70 6.95% $ 795 1.40% 5.95% 3.05% 58%
5.59 (50.78) 771 1.50 3.89 3.58 50
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
$ 8.21 17.56% $ 19,825 1.25% 3.37% 1.20% 49%
6.99 (55.18) 16,312 1.72 2.51 0.53 123
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
$ 8.18 17.36% $ 707 1.50% 3.63% 0.87% 49%
6.97 (55.25) 1,061 1.98 2.73 0.20 123
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
$15.41 (2.41)% $144,513 1.38% 1.38% (0.28)% 29%
15.79 (31.08) 178,772 1.25 1.25 (0.29) 74
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
$15.32 (2.48)% $ 2,199 1.64% 1.64% (0.55)% 29%
15.71 (31.28) 3,337 1.50 1.50 (0.54) 74
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.
61
SCHRODER MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED) AND THE YEARS OR 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 DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM NET
BEGINNING INCOME GAINS INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS) (LOSSES) OPERATIONS INCOME GAIN DISTRIBUTIONS
--------- ---------- ---------- ---------- ---------- ------------- -------------
U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Investor Shares
2009* ......... $ 7.96 $ 0.01(1) $ 0.04+ $ 0.05 $ -- $ -- $ --
2008 .......... 12.56 (0.04)(1) (3.81)+ (3.85) -- (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
2009* ......... $ 7.91 $(0.01)(1) $ 0.05+ $ 0.04 $ -- $ -- $ --
2008 .......... 12.53 (0.06)(1) (3.81)+ (3.87) -- (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
2009* ......... $ 7.58 $ 0.11 $(0.74) $(0.63) $(0.24) $ -- $(0.24)
2008 .......... 13.52 0.22 (4.37) (4.15) (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
2009* ......... $ 7.55 $ 0.10 $(0.73) $(0.63) $(0.21) $ -- $(0.21)
2008 .......... 13.48 0.22 (4.40) (4.18) (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
2009* ......... $ 9.57 $ 0.19 $ 0.60 $ 0.79 $(0.20) $(0.24) $(0.44)
2008 .......... 9.79 0.41 (0.22) 0.19 (0.40) (0.01) (0.41)
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
2009* ......... $ 9.57 $ 0.19 $ 0.60 $ 0.79 $(0.19) $(0.24) $(0.43)
2008 .......... 9.79 0.39 (0.22) 0.17 (0.38) (0.01) (0.39)
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)
MULTI-ASSET GROWTH PORTFOLIO
Investor Shares
2009* ......... $ 7.01 $ 0.11(1) $(0.22) $(0.11) $(0.36) $-- $(0.36)
2008(g) ....... 10.00 0.16(1) (3.15) (2.99) -- -- --
A Shares
2009* ......... $ 7.00 $ 0.11(1) $(0.22)+ $(0.11) $(0.34) $-- $(0.34)
2008(g) ....... 10.00 0.14(1) (3.14)+ (3.00) -- -- --
Advisor Shares
2009* ......... $ 7.00 $ 0.10(1) $(0.22) $(0.12) $(0.34) $-- $(0.34)
2008(g) ....... 10.00 0.14(1) (3.14) (3.00) -- -- --
R Shares
2009* ......... $ 6.98 $ 0.09(1) $(0.21) $(0.12) $(0.32) $-- $(0.32)
2008(g) ....... 10.00 0.12(1) (3.14) (3.02) -- -- --
* For the six months ended April 30, 2009 (Unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.
** Had custody offsets been included the ratios would have been 1.40% and
1.64% for the Investor Shares and Advisor Shares, respectively.
+ Includes redemption fees. Amount was less than $0.01 per share.
(1) Per share net investment 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.
(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.
The accompanying notes are an integral part of the financial statements.
62
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
- ---------- --------- ------------ --------------- -------------- -------------- ---------
$ 8.01 0.63% $ 19,419 1.05% 3.00% 0.15% 45%
7.96 (32.31) 11,999 1.37 2.74 (0.38) 92
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
$7.95 0.51% $ 738 1.30% 3.22% (0.19)% 45%
7.91 (32.56) 230 1.64 3.01 (0.55) 92
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
$ 6.71 (8.27)% $ 356,802 0.43% 0.43% 2.35% 41%
7.58 (34.81) 486,931 0.35 0.35 1.94 131
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
$ 6.71 (8.31)% $ 94 0.78% 0.78% 1.97% 41%
7.55 (35.08) 102 0.70 0.70 1.57 131
13.48 14.66 133 0.68 0.68 1.41 38
12.61 6.50 107 0.68 0.68 1.17 51
$ 9.92 8.26% $ 97,291 0.40% 0.74% 3.92% 337%
9.57 1.93 72,310 0.40 0.70 4.03 555
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
$ 9.93 8.23% $ 5,707 0.65% 1.01% 3.56% 337%
9.57 1.67 996 0.65 0.95 3.78 555
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
$ 6.54 (1.33)% $ 415 1.25% 3.79% 3.37% 22%
7.01 (29.90) 354 1.25 3.80(i) 1.91 151
$ 6.55 (1.48)% $ 2,218 1.50% 3.92% 3.49% 22%
7.00 (30.00) 18,320 1.50 4.06(i) 1.65 151
$ 6.54 (1.52)% $ 2,627 1.50% 3.99% 3.18% 22%
7.00 (30.00) 2,660 1.50 4.06(i) 1.66 151
$ 6.54 (1.55)% $ 344 1.75% 4.24% 2.93% 22%
6.98 (30.20) 349 1.75 4.30(i) 1.41 151
(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 20, 2007. 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.
(i) If tax expense was not included, the Ratio of Expenses to Average Net
Assets (Excluding Waivers, Reimbursements and Offsets) would have been
3.20%, 3.46%, 3.46%, and 3.71% for the Investor Shares, A Shares, Advisor
Shares and R Shares, respectively.
The accompanying notes are an integral part of the financial statements.
63
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2009 (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 SGST. 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. 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. SST was organized as a
business trust under the laws of The Commonwealth of Massachusetts on May 6,
1993. SST has an unlimited number of authorized shares, which are divided into
seven separate 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 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 and Schroder Multi-Asset Growth Portfolio
commenced operations as of August 30, 2006 and December 20, 2007, respectively.
The Financial Statements for Schroder Municipal Bond Fund and Schroder
Short-Term Municipal Bond Fund are presented separately.
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
64
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
(the "Committee") designated by the Funds' Trustees. Some of the more common
reasons that may necessitate that a security be valued using Fair Value
Procedures include: the security's trading has been halted or suspended; the
security has been de-listed from a national exchange; the security's 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 include investments
in underlying affiliated registered investment companies, which are valued at
their respective daily net asset values.
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.
As of November 1, 2008, the Funds adopted Statement of Financial Accounting
Standards No. 157 -- Fair Value Measurements ("SFAS 157"). SFAS 157 defines fair
value, establishes a framework for measuring fair value and expands disclosures
about fair value measurements. SFAS 157 requires disclosure surrounding the
various inputs that are used in determining the fair value of the Funds'
investments. These inputs are summarized into the three broad levels listed
below.
- Level 1 -- quoted prices in active markets for identical securities
- Level 2 -- other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.)
- Level 3 -- significant unobservable inputs (including the Funds' own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of April 30, 2009 in valuing
the Funds' assets and liabilities carried at fair value:
APPRECIATION IN DEPRECIATION IN
INVESTMENTS IN OTHER FINANCIAL OTHER FINANCIAL
VALUATION INPUTS SECURITIES INSTRUMENTS* INSTRUMENTS*
- ---------------- -------------- --------------- ---------------
SCHRODER INTERNATIONAL ALPHA FUND
Level 1 -- Quoted Prices $43,806,936 $-- $--
Level 2 -- Other Significant Observable Inputs 837,945 -- --
Level 3 -- Significant Unobservable Inputs -- -- --
----------- --- ---
TOTAL $44,644,881 $-- $--
=========== === ===
65
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
APPRECIATION IN DEPRECIATION IN
INVESTMENTS IN OTHER FINANCIAL OTHER FINANCIAL
VALUATION INPUTS SECURITIES INSTRUMENTS* INSTRUMENTS*
- ---------------- -------------- --------------- ---------------
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND
Level 1 -- Quoted Prices $ 7,349,462 $ -- $ --
Level 2 -- Other Significant Observable Inputs -- -- --
Level 3 -- Significant Unobservable Inputs 18,716 -- --
------------ -------- ---------
TOTAL $ 7,368,178 $ -- $ --
============ ======== =========
SCHRODER EMERGING MARKET EQUITY FUND
Level 1 -- Quoted Prices $ 20,472,280 $ -- $ --
Level 2 -- Other Significant Observable Inputs 84,843 -- --
Level 3 -- Significant Unobservable Inputs -- -- --
------------ -------- ---------
TOTAL $ 20,557,123 $ -- $ --
============ ======== =========
SCHRODER U.S. OPPORTUNITIES FUND
Level 1 -- Quoted Prices $145,581,774 $ -- $ --
Level 2 -- Other Significant Observable Inputs -- -- --
Level 3 -- Significant Unobservable Inputs -- -- --
------------ -------- ---------
TOTAL $145,581,774 $ -- $ --
============ ======== =========
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND
Level 1 -- Quoted Prices $ 20,221,791 $ -- $ --
Level 2 -- Other Significant Observable Inputs -- -- --
Level 3 -- Significant Unobservable Inputs -- -- --
------------ -------- ---------
TOTAL $ 20,221,791 $ -- $ --
============ ======== =========
SCHRODER NORTH AMERICAN EQUITY FUND
Level 1 -- Quoted Prices $356,164,253 $ -- $(112,965)
Level 2 -- Other Significant Observable Inputs 110,944 -- --
Level 3 -- Significant Unobservable Inputs -- -- --
------------ -------- ---------
TOTAL $356,275,197 $ -- $(112,965)
============ ======== =========
SCHRODER TOTAL RETURN FIXED INCOME FUND
Level 1 -- Quoted Prices $ 10,999,591 $ 18,645 $ (47,716)
Level 2 -- Other Significant Observable Inputs 88,832,951 -- --
Level 3 -- Significant Unobservable Inputs -- -- --
------------ -------- ---------
TOTAL $ 99,832,542 $ 18,645 $ (47,716)
============ ======== =========
SCHRODER MULTI-ASSET GROWTH PORTFOLIO
Level 1 -- Quoted Prices $ 5,435,263 $173,976 $(200,270)
Level 2 -- Other Significant Observable Inputs -- -- --
Level 3 -- Significant Unobservable Inputs -- -- --
------------ -------- ---------
TOTAL $ 5,435,263 $173,976 $(200,270)
============ ======== =========
* Other financial instruments may include futures, forwards and swap
contracts.
66
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
The following is a reconciliation of the investments in which significant
unobservable inputs (Level 3) were used in determining value:
SCHRODER
INTERNATIONAL
DIVERSIFIED VALUE
INVESTMENTS IN SECURITIES FUND
- ------------------------- -----------------
Balance as of October 31, 2008 $ --
Realized gain (loss) --
Change in unrealized appreciation (depreciation) --
Net purchases (sales) --
Net transfers in and/or out of Level 3 18,716
-------
Balance as of April 30, 2009 $18,716
=======
FEDERAL INCOME TAXES: It is the intention of the Funds for each Fund to qualify
or 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.
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 Funds' financial statements upon adoption. If the Funds
were to record a tax expense as a result of the adoption of FIN 48, the tax
expense would include any interest and penalties. The Funds file U.S. federal
income tax returns and, if applicable, returns in various foreign jurisdictions
in which it invests. While the statute of limitations remains open to examine
the Funds' U.S. federal income tax returns filed for the fiscal years 2005 to
2008, no examinations are in progress or anticipated at this time. 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. The Funds are
not aware of any tax positions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will significantly change in the next
twelve months.
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.
67
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
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.
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 each of the Funds,
except Schroder Total Return Fixed Income Fund, which declares dividends to
shareholders from net investment income daily and distributes these dividends
monthly and for which distributions to shareholders from net realized capital
gains, if any, are declared and distributed at least annually.
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 investments, instruments or indices including a particular
interest rate, foreign currency, or "basket" of securities representing a
particular index. The Funds, in particular Schroder Total Return Fixed Income
Fund and Schroder Multi-Asset Growth Portfolio may
68
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
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, Schroder Emerging Market, Schroder
U.S. Small and Mid Cap Opportunities, and Schroder North American Equity 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, 2009, 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, 2009, 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 $16,109 1/7/05 $16,086 $15,625 0.0%
69
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
MORTGAGE DOLLAR ROLLS: The Schroder Total Return Fixed Income Fund may enter
into mortgage dollar rolls (principally using TBAs) in which the 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. The Fund accounts for such dollar rolls
under the purchases and sales method and receives compensation as consideration
for entering into the commitment to repurchase. The 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 the
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, 2009, the Schroder Multi-Asset
Growth Portfolio incurred offering costs of $7,342 and as of April 30, 2009, the
Fund has fully amortized its offering costs.
NOTE 3 -- INVESTMENT ADVISORY FEES, ADMINISTRATION AGREEMENTS AND DISTRIBUTION
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 and 0.75% for the Schroder Multi-Asset Growth Portfolio (waived until
February 28, 2009 to 0.60%, and until February 28, 2010 to 0.54%).
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
North American Equity Fund and the Schroder Multi-Asset Growth Portfolio. SIMNA
pays SIMNA Ltd. 50% of the investment advisory fees it receives from these
Funds, after waivers.
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 provides
certain administration services to the Schroder International Alpha Fund and the
Schroder U.S. Opportunities Fund. SIMNA's compensation for these services 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 June 1, 2008, the SCFD Funds and SST Funds pay fees to SEI based on
the combined average daily net assets of all the SST and SCFD Funds according to
the following annual rates: 0.095% on the first $1 billion of such assets;
0.085% on the next $1 billion of such assets, 0.07% on the next $1 billion of
such assets, 0.06% on the next $2 billion of such assets, and 0.05% on assets in
excess of $5 billion. Effective January 28, 2005, and 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 pay or reimburse the applicable Fund
for expenses through February 28, 2010 for Schroder U.S. Opportunities Fund and
Schroder Total Return Fixed Income Fund, Schroder International Alpha Fund,
Schroder International Diversified Value Fund, Schroder Emerging Market Fund and
Schroder U.S. Small and Mid Cap Opportunities Fund to the extent that the total
annual fund operating expenses of a Fund
70
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
(other than acquired fund fees and expenses, other indirect acquired fund
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, 1.15%, Schroder International Diversified Value Fund, 1.15%,
Schroder Emerging Market Equity Fund, 1.25%, Schroder U.S. Opportunities Fund,
1.70%, Schroder U.S. Small and Mid Cap Opportunities Fund, 1.05%, Schroder Total
Return Fixed Income Fund, 0.40% 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 pay or reimburse the applicable
Fund for other Fund expenses through February 28, 2010 for Schroder U.S.
Opportunities Fund, Schroder Total Return Fixed Income Fund, Schroder
International Alpha Fund, Schroder International Diversified Value Fund,
Schroder Emerging Market Equity Fund and Schroder U.S. Small and Mid Cap
Opportunities Fund to the extent that the total annual fund operating expenses
of a Fund (other than acquired fund fees and expenses, other indirect acquired
fund 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, 1.40%, Schroder International Diversified Value Fund,
1.40%, Schroder Emerging Market Equity Fund, 1.50%, Schroder U.S. Opportunities
Fund, 1.95%, Schroder U.S. Small and Mid Cap Opportunities Fund, 1.30%, Schroder
Total Return Fixed Income Fund, 0.65% 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, 2010 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.
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 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 and Schroder Multi-Asset Growth Portfolio for the six months
ended April 30, 2009 totaled $15,586, $8, $18,263, $2,387, $697 and $344,
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, 2009, 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 meeting, with the Audit Committee chair receiving a
$5,000 retainer. Payment of Trustee fees is allocated 50% equally to each Trust
and the remaining 50% to the Funds based on their respective amount of assets.
If a meeting relates to a single Fund or group of Funds, payments of such
meeting fees are allocated only among those Funds to which the meeting relates.
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.
71
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
NOTE 6 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund, for the six months ended April 30, 2009
were as follows:
PURCHASES SALES AND MATURITIES
------------ --------------------
Schroder International Alpha Fund ................... $ 29,048,605 $ 16,606,856
Schroder International Diversified Value Fund ....... 4,223,909 5,239,618
Schroder Emerging Market Equity Fund ................ 8,407,225 8,146,481
Schroder U.S. Opportunities Fund .................... 40,570,311 65,348,657
Schroder U.S. Small and Mid Cap Opportunities Fund .. 11,515,883 5,614,753
Schroder North American Equity Fund ................. 140,999,798 182,610,456
Schroder Total Return Fixed Income Fund ............. 37,745,296 31,068,203
Schroder Multi-Asset Growth Portfolio ............... 2,592,919 14,252,701
Purchases and proceeds from sales and maturities of U.S. Government securities
for the six months ended April 30, 2009 were as follows:
PURCHASES SALES AND MATURITIES
----------- --------------------
Schroder Total Return Fixed Income Fund .... 214,306,857 220,438,231
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 effect the redemption is the respective asset price used to
calculate the net asset value of the shares redeemed. For the year ended October
31, 2008, the Schroder North American Equity Fund realized gains from in-kind
redemptions of $5,180,341. For the six months ended April 30, 2009, the Schroder
North American Equity Fund realized losses from in-kind redemptions of
$18,461,226.
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)(2) of the Investment Company 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 ........................................ $598,847 $2,205,378 $(1,288,826) $ --
Schroder Emerging Market Equity Fund ........... 58,389 575,650 (642,217) 557
Schroder International Alpha Fund .............. 21,273 1,666,877 (963,692) 21,273
Schroder International Diversified Value Fund .. 69,626 1,010,817 (905,382) 69,626
NOTE 7 -- FEDERAL INCOME TAXES
The Schroder Multi-Asset Growth Portfolio elected to be taxed as a regulated
investment company ("RIC") under Subchapter M of the Internal Revenue Code
effective May 23, 2008. All earnings prior to May 23, 2008, both realized and
unrealized, are excluded from the taxable income of the Fund. The prior earnings
have been reclassified to "Capital Paid-in." The undistributed balances and the
tax character of dividends and distributions declared only reflect income earned
and distributions declared after May 23, 2008. Taxable income prior to May 23,
2008 was included in the income tax return of Schroder U.S. Holdings, Inc., an
affiliated company of SIMNA, which was the Fund's sole shareholder until May 23,
2008. The Fund's portion of taxes for the fiscal year ended October 31, 2008 was
estimated as if the Fund filed on a separate return basis. The estimated taxes
for this period were $147,660.
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.
72
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
The tax character of dividends and distributions declared during the years or
periods ended October 31, 2008 and October 31, 2007 was as follows:
ORDINARY LONG-TERM
INCOME CAPITAL GAIN TOTAL
---------- ------------ ------------
Schroder International Alpha Fund
2008 .......................................... $ 958,846 $ -- $ 958,846
2007 .......................................... 461,687 -- 461,687
Schroder International Diversified Value Fund
2008 .......................................... 1,796,852 347,610 2,144,462
2007 .......................................... 172,530 -- 172,530
Schroder Emerging Market Equity Fund
2008 .......................................... 2,275,689 1,230,055 3,505,744
2007 .......................................... 63,167 -- 63,167
Schroder U.S. Opportunities Fund
2008 .......................................... 5,039,977 22,631,107 27,671,084
2007 .......................................... 7,344,179 13,699,207 21,043,386
Schroder U.S. Small and Mid Cap Opportunities Fund
2008 .......................................... 311,839 386,347 698,186
2007 .......................................... 3,936 -- 3,936
Schroder North American Equity Fund
2008 .......................................... 28,675,160 77,583,254 106,258,414
2007 .......................................... 42,947,662 33,761,191 76,708,853
Schroder Total Return Fixed Income Fund
2008 .......................................... 3,069,846 35,383 3,105,229
2007 .......................................... 1,986,596 -- 1,986,596
As of October 31, 2008, the components of accumulated losses on a tax basis were
as follows:
UNDISTRIBUTED UNDISTRIBUTED CAPITAL OTHER TOTAL
ORDINARY LONG-TERM LOSS UNREALIZED TEMPORARY ACCUMULATED
INCOME CAPITAL GAIN CARRYFORWARD DEPRECIATION DIFFERENCES LOSSES
------------- ------------- ------------ ------------- ----------- ---------------
Schroder International
Alpha Fund ............. $ 235,783 $ -- $(6,497,617) $(19,100,900) $ 3,237 $ (25,359,497)
Schroder International
Diversified Value Fund.. 346,388 -- (109,889) (6,297,279) (31,965) (6,092,745)
Schroder Emerging Market
Equity Fund ............ 4,686 -- (949,933) (9,755,988) (17,731) (10,718,966)
Schroder U.S. Opportunities
Fund ................... -- -- (6,743,035) (29,301,433) -- (36,044,468)
Schroder U.S. Small and
Mid Cap Opportunities
Fund ................... -- -- (819,300) (2,593,297) (14,398) (3,426,995)
Schroder North American
Equity Fund ............ 10,882,828 -- (41,328,784) (136,635,513) 5,909,143 (161,172,326)
Schroder Total Return
Fixed Income Fund ...... 1,694,829 476,922 -- (3,212,308) (534,023) (1,574,580)
Schroder Multi-Asset
Growth Portfolio ....... 595,835 -- (3,192,418) (6,781,264) (197,536) (9,575,383)
73
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
As of October 31, 2008, 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
2,965,066 2016
Schroder International Diversified Value Fund .......... 109,889 2016
Schroder Emerging Market Equity Fund ................... 949,933 2016
Schroder U.S. Opportunities Fund ....................... 6,743,035 2016
Schroder U.S. Small and Mid Cap Opportunities Fund ..... 819,300 2016
Schroder North American Equity Fund .................... 41,328,784 2016
Schroder Multi-Asset Growth Portfolio .................. 3,192,418 2016
At April 30, 2009, 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 ............... $ 50,972,549 $ 2,823,146 (9,150,814) (6,327,668)
Schroder International Diversified Value Fund ... 10,045,649 398,453 (3,075,924) (2,677,471)
Schroder Emerging Market Equity Fund ............ 22,046,366 1,722,300 (3,211,543) (1,489,243)
Schroder U.S. Opportunities Fund ................ 157,318,439 12,740,745 (24,477,410) (11,736,665)
Schroder U.S. Small and Mid Cap Opportunities
Fund ......................................... 20,142,943 1,523,726 (1,444,878) 78,848
Schroder North American Equity Fund ............. 455,484,233 11,487,140 (110,696,176) (99,209,036)
Schroder Total Return Fixed Income Fund ......... 98,528,345 1,857,208 (553,011) 1,304,197
Schroder Multi-Asset Growth Portfolio ........... 5,644,010 191,761 (400,508) (208,747)
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 and Schroder International Diversified
Value 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.
The Schroder Total Return Fixed Income Fund invests a portion of its 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.
74
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (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, 2009 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
--------------------------
% OF
NUMBER FUND HELD
------- ---------
Schroder International Alpha Fund ..................... 3 90.31%
Schroder International Diversified Value Fund ......... 3 98.71
Schroder Emerging Market Equity Fund .................. 3 82.53
Schroder U.S. Opportunities Fund ...................... 3 76.77
Schroder U.S. Small and Mid Cap Opportunities Fund .... 6 86.67
Schroder North American Equity Fund ................... 4 83.41
Schroder Total Return Fixed Income Fund ............... 4 90.28
Schroder Multi-Asset Growth Portfolio ................. 5 98.64
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 and Schroder Multi-Asset
Growth Portfolio are owned by an affiliate of SIMNA.
NOTE 10 -- LINE OF CREDIT
The Funds, along with other related open-end series management investment
companies managed by SIMNA, entered into a credit agreement on October 6, 2008
which enables them to participate in a $25 million committed revolving line of
credit with JPMorgan Chase Bank, N.A. Any advance under the line of credit is
contemplated primarily for temporary or emergency purposes consistent with the
investment objectives and fundamental investment restrictions of the borrower,
or to finance the redemption of the shares of a shareholder of the borrower.
Interest is charged to the Funds based on its borrowings at the current
reference rate. The Funds pay their pro rata portion of an annual commitment fee
of 0.15% on the total amount of the credit facility. The Funds did not have any
borrowings under the credit agreement during the period from November 1, 2008
through April 30, 2009.
NOTE 11 -- 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,
2009 2008 2009 2008 2009 2008
---------- ----------- ---------- ------------ ----------- -----------
INVESTOR SHARES:
Sales of shares .......... 66,629 351,750 2,512 282,628 1,187,291 642,134
Reinvestment of
distributions ......... 26,500 40,026 68,576 184,373 2,155 230,257
Redemption of shares ..... (299,820) (150,536) (211,969) (84,401) (1,106,894) (90,216)
--------- -------- -------- ------- ---------- --------
Net increase (decrease) in
Investor Shares ....... (206,691) 241,240 (140,881) 382,600 82,552 782,175
========= ======== ======== ======= ========== ========
ADVISOR SHARES:
Sales of shares .......... 2,887,859 469,751 215 50,881 57,425 329,402
Reinvestment of
distributions ......... 24,919 36,416 6,481 24,459 -- 18,455
Redemption of shares ..... (727,427) (317,143) (4,850) (59,364) (123,336) (340,781)
--------- -------- -------- ------- ---------- --------
Net increase in Advisor
Shares ................ 2,185,351 189,024 1,846 15,976 (65,911) 7,076
========= ======== ======== ======= ========== ========
75
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
U.S. OPPORTUNITIES U.S. SMALL AND MID CAP NORTH AMERICAN
FUND 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,
2009 2008 2009 2008 2009 2008
---------- ----------- ---------- ----------- ----------- -----------
INVESTOR SHARES:
Sales of shares ..................... 415,612 984,467 1,358,564 712,839 2,391,212 3,916,897
Reinvestment of distributions ....... -- 1,238,726 -- 55,239 1,200,557 8,423,399
Redemption of shares ................ (2,363,222) (2,802,194) (443,030) (71,717) (2,191,910) (3,625,013)
Redemption of shares in-kind ........ -- -- -- -- (12,491,720) (4,373,826)
---------- ---------- --------- ------- ----------- ----------
Net increase (decrease) in
Investor Shares .................. (1,947,610) (579,001) 915,534 696,361 (11,091,861) 4,341,457
========== ========== ========= ======= =========== ==========
ADVISOR SHARES:
Sales of shares ..................... 5,957 28,434 86,964 12,224 339 2,088
Reinvestment of distributions ....... -- 24,017 -- 7,746 419 1,565
Redemption of shares ................ (74,799) (73,488) (23,215) (104,345) (282) --
---------- ---------- --------- ------- ----------- ----------
Net increase (decrease) in
Advisor Shares ................... (68,842) (21,037) 63,749 (84,375) 476 3,653
========== ========== ========= ======= =========== ==========
TOTAL RETURN FIXED
INCOME FUND
------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
2009 2008
---------- -----------
INVESTOR SHARES:
Sales of shares ..................... 3,111,309 108,534
Reinvestment of distributions ....... 339,124 309,996
Redemption of shares ................ (1,200,879) (142,808)
---------- --------
Net increase in Investor Shares ..... 2,249,554 275,722
========== ========
ADVISOR SHARES:
Sales of shares ..................... 698,241 30,531
Reinvestment of distributions ....... 10,036 3,447
Redemption of shares ................ (237,817) (16,828)
---------- --------
Net increase (decrease) in
Advisor Shares ................... 470,460 17,150
========== ========
MULTI-ASSET
GROWTH PORTFOLIO
------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
2009 2008(a)
---------- -----------
INVESTOR SHARES:
Sales of shares ..................... 10,018 50,480
Reinvestment of distributions ....... 2,929 --
Redemption of shares ................ -- --
---------- ---------
Net increase in Investor Shares ..... 12,947 50,480
========== =========
A SHARES:
Sales of shares ..................... 666 2,654,639
Reinvestment of distributions ....... 20,583 --
Redemption of shares ................ -- (37,504)
---------- ---------
Net increase in A Shares ............ 21,249 2,617,135
========== =========
ADVISOR SHARES:
Sales of shares ..................... 14,813 380,201
Reinvestment of distributions ....... 92,271 --
Redemption of shares ................ (2,385,595) --
---------- ---------
Net increase in Advisor Shares ...... (2,278,511) 380,201
========== =========
R SHARES:
Sales of shares ..................... -- 50,000
Reinvestment of distributions ....... 2,535 --
Redemption of shares ................ -- --
---------- ---------
Net increase in R Shares ............ 2,535 50,000
========== =========
(a) Fund commenced investment activities on December 20, 2007.
76
SCHRODER MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
NOTE 12 -- ACCOUNTING PRONOUNCEMENTS
In March 2008, the FASB issued SFAS No. 161, DISCLOSURES ABOUT DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES. SFAS No. 161 is 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.
In October 2008, the FASB issued Staff Position 157-3, DETERMINING THE FAIR
VALUE OF A FINANCIAL ASSET IN A MARKET THAT IS NOT ACTIVE ("FSP 157-3"), which
clarifies the application of SFAS 157 in an inactive market and provides an
illustrative example to demonstrate how the fair value of a financial asset is
determined when the market for that financial asset is not active. The guidance
provided by FSP 157-3 did not have an impact on the Fund's approach to valuing
financial assets.
In April 2009, FASB Staff Position No. 157-4 -- DETERMINING FAIR VALUE WHEN THE
VOLUME AND LEVEL OF ACTIVITY FOR THE ASSET OR LIABILITY HAVE SIGNIFICANTLY
DECREASED AND IDENTIFYING TRANSACTIONS THAT ARE NOT ORDERLY ("FSP 157-4") was
issued. FSP 157-4 clarifies the process for measuring the fair value of
financial instruments when the markets become inactive and quoted prices may
reflect distressed transactions. FSP 157-4 provides a non-exclusive list of
factors a reporting entity should consider when determining whether there has
been a significant decrease in the volume and level of activity for an asset or
liability when compared with normal market activity. Under FSP 157-4, if a
reporting entity concludes there has been a significant decrease in volume and
level of activity for the asset or liability (or similar assets or liabilities),
transactions or quoted prices may not be determinative of fair value. Further
analysis of the transactions or quoted prices is needed, and a significant
adjustment to the transactions or quoted prices may be necessary to estimate
fair value in accordance with FASB Statement No. 157 -- FAIR VALUE MEASUREMENT.
FSP 157-4 is effective for interim and annual reporting periods ending after
June 15, 2009, and shall be applied prospectively. At this time, management is
evaluating the impact of FSP 157-4 on the Fund's financial statements.
77
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 Securities and Exchange
Commission's ("SEC") 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 web-site 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' Forms
N-Q are available on the SEC's website at http://www.sec.gov, and may be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
78
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.
- - 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."
- - 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 incurred
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 SEC 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
11/1/08 4/30/09 Ratios Period*
--------- --------- ---------- --------
Schroder International Alpha Fund
Actual Return
Investor Shares $1,000.00 $1,013.10 1.15% $5.74
Advisor Shares 1,000.00 1,013.20 1.40% $6.99
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,019.09 1.15% $5.76
Advisor Shares 1,000.00 1,017.85 1.40% $7.00
Schroder International Diversified Value Fund
Actual Return
Investor Shares $1,000.00 $1,069.80 1.15% $5.90
Advisor Shares 1,000.00 1,069.50 1.40% $7.18
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,019.09 1.15% $5.76
Advisor Shares 1,000.00 1,017.85 1.40% $7.00
79
SCHRODER MUTUAL FUNDS
DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONTINUED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/1/08 4/30/09 Ratios Period*
--------- --------- ---------- --------
Schroder Emerging Market Equity Fund
Actual Return
Investor Shares $1,000.00 $1,175.60 1.25% $6.74
Advisor Shares 1,000.00 1,173.60 1.50% $8.08
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.60 1.25% $6.26
Advisor Shares 1,000.00 1,017.36 1.50% $7.50
Schroder U.S. Opportunities Fund
Actual Return
Investor Shares $1,000.00 $ 975.90 1.38% $6.76
Advisor Shares 1,000.00 975.20 1.64% $8.03
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,017.95 1.38% $6.90
Advisor Shares 1,000.00 1,016.66 1.64% $8.20
Schroder U.S. Small and Mid Cap Opportunities Fund
Actual Return
Investor Shares $1,000.00 $1,006.30 1.05% $5.22
Advisor Shares 1,000.00 1,005.10 1.30% $6.46
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,019.59 1.05% $5.26
Advisor Shares 1,000.00 1,018.35 1.30% $6.51
Schroder North American Equity Fund
Actual Return
Investor Shares $1,000.00 $ 917.30 0.43% $2.04
Advisor Shares 1,000.00 916.90 0.78% $3.71
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.66 0.43% $2.16
Advisor Shares 1,000.00 1,020.93 0.78% $3.91
Schroder Total Return Fixed Income Fund
Actual Return
Investor Shares $1,000.00 $1,082.60 0.40% $2.07
Advisor Shares 1,000.00 1,082.30 0.65% $3.36
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,022.81 0.40% $2.01
Advisor Shares 1,000.00 1,021.57 0.65% $3.26
80
SCHRODER MUTUAL FUNDS
DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONCLUDED)
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
11/1/08 4/30/09 Ratios Period*
--------- --------- ---------- --------
Schroder Multi-Asset Growth Portfolio
Actual Return
Investor Shares $1,000.00 $ 986.70 1.25% $6.16
A Shares 1,000.00 985.20 1.50% $7.38
Advisor Shares 1,000.00 984.80 1.50% $7.38
R Shares 1,000.00 984.50 1.75% $8.61
Hypothetical Example for
Comparison Purposes
Investor Shares $1,000.00 $1,018.60 1.25% $6.26
A Shares 1,000.00 1,017.36 1.50% $7.50
Advisor Shares 1,000.00 1,017.36 1.50% $7.50
R Shares 1,000.00 1,016.12 1.75% $8.75
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the account period, multiplied by 181/365 (to
reflect the one-half year period).
81
NOTES
NOTES
NOTES
PRIVACY STATEMENT
In the course of doing business with Schroders and the Schroder Mutual Funds,
you share nonpublic personal and financial information ("nonpublic personal
information") with us. Schroders respects your right to privacy. We understand
that you have entrusted us with this private information and we recognize the
importance of protecting unnecessary or unauthorized access to it.
I. INFORMATION THAT WE COLLECT
We may collect nonpublic personal information about you when you communicate or
transact business with us or with our service providers in writing,
electronically, or by telephone. For example, we collect nonpublic personal
information (such as name, address, account and other investment information)
about you from the following sources:
- - 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)
Peter S. Knight
William L. Means
James D. Vaughn
DISTRIBUTOR Schroder Fund Advisors Inc.
875 Third Avenue, 22nd Floor
New York, NY 10022
TRANSFER & SHAREHOLDER Boston Financial Data Services, Inc.
SERVICING AGENT
CUSTODIAN JPMorgan 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
52027
(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, 2009 through April 30,
2009 that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schroder Global Series Trust
By (Signature and Title)* /s/ Mark A. Hemenetz
----------------------------------------
Mark A. Hemenetz,
Principal Executive Officer
Date: July 7, 2009
----------------------
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: July 7, 2009
----------------------
By (Signature and Title)* /s/ Alan M. Mandel
----------------------------------------
Alan M. Mandel,
Treasurer and Chief Financial Officer
Date: July 7, 2009
----------------------
* Print the name and title of each signing officer under his or her
signature.