497 1 file1.htm

Filed pursuant to Rule 497(c) under the
Securities Act of 1933, as amended
Registration File No.: 33-65632

[SCHRODERS GRAPHIC OMITTED]

PROSPECTUS

June 30, 2006

SCHRODER STRATEGIC BOND FUND

Investor Shares

This Prospectus describes one mutual fund offered by Schroder Series Trust (the
"Trust").

SCHRODER STRATEGIC BOND FUND seeks a high level of total return. The Fund
invests in a portfolio of debt securities of issuers across a spectrum of
sectors and markets around the world.

This Prospectus explains what you should know about the Fund before you invest.
Please read it carefully. You can call the Schroder Mutual Funds at (800)
464-3108 to find out more about the Fund and other funds in the Schroder family
of funds. From outside the United States, please call (617) 483-5000 and ask to
speak with a representative of the Schroder Mutual Funds.

NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

SCHRODER SERIES TRUST

TABLE OF CONTENTS

Page
-----
SUMMARY INFORMATION .................................................... 1
Schroder Strategic Bond Fund ......................................... 1
FEES AND EXPENSES ...................................................... 5
PRINCIPAL RISKS OF INVESTING IN THE FUND ............................... 7
NON-PRINCIPAL INVESTMENT STRATEGIES AND TECHNIQUES ..................... 13
MANAGEMENT OF THE FUND ................................................. 15
HOW THE FUND'S SHARES ARE PRICED ....................................... 16
HOW TO BUY SHARES ...................................................... 17
HOW TO SELL SHARES ..................................................... 21
EXCHANGES .............................................................. 24
DIVIDENDS AND DISTRIBUTIONS ............................................ 25
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES ...................... 26
PAYMENT OF FEES ........................................................ 27
TAXES .................................................................. 28
DISCLOSURES OF FUND PORTFOLIO INFORMATION .............................. 30
USA PATRIOT ACT ........................................................ 31

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SUMMARY INFORMATION

This summary identifies the investment objective, principal investment
strategies, and principal risks of Schroder Strategic Bond Fund (the "Fund").

SCHRODER STRATEGIC BOND FUND

INVESTMENT OBJECTIVE. To seek a high level of total return.

PRINCIPAL INVESTMENT STRATEGIES. The Fund seeks its objective by investing in
a portfolio of debt securities of issuers across a spectrum of sectors and
markets around the world. The Fund normally invests substantially all, and at
least 80%, of its net assets in debt securities. The Fund may use derivatives
for purposes of complying with this test. The Fund may, from time to time,
invest more than 25% of its net assets in any one country or group of
countries. The Fund's sub-adviser will normally (though it will not
necessarily) hedge a substantial portion of the Fund's foreign currency
exposure back into the U.S. dollar, in order to limit the effects of changes
in foreign currencies on the value of the Fund's portfolio. The Fund is a
non-diversified investment company.

The Fund may invest in any type of debt securities, including, for example,
corporate debt securities, securities issued or guaranteed by sovereign
governments, their agencies, or instrumentalities (including securities
issued by the U.S. Government, the Government National Mortgage Association,
Federal Home Loan Banks, Fannie Mae, and Freddie Mac) and mortgage-backed
securities (including collateralized mortgage obligations). The Fund may
invest in convertible securities and warrants. The Fund may invest in
securities of any maturity, but will normally seek to maintain a
dollar-weighted average portfolio duration of 10 years or less. The Fund may
invest a substantial portion of its assets in mortgage-backed and
mortgage-related securities, including collateralized mortgage obligations,
and other asset-backed securities. Asset-backed securities in which the Fund
invests may have underlying assets that include motor vehicle installment
sales or installment loan contracts, leases of various types of real and
personal property and receivables from credit card agreements.

The Fund will invest principally in securities of "investment grade" at the
time of purchase, meaning either that a nationally recognized statistical
rating organization (for example, Moody's Investor Service, Inc., Standard &
Poor's Rating Service, or Fitch Investors Service, Inc.) has rated the
securities Baa3 or BBB- (or the equivalent) or better, or the Fund's
sub-adviser has determined the securities to be of comparable quality. Up to
40% of the Fund's total assets may be invested in securities rated below
"investment grade", sometimes referred to as "junk bonds" (or, if unrated,
determined by the Fund's sub-adviser to be of comparable quality).

The Fund may (though it will not necessarily) purchase and sell interest rate
futures contracts and enter into swap transactions, foreign currency forwards
and swap transactions, and options, as a substitute for cash investments, for
hedging purposes, to take a net short position in certain markets, or to
adjust the interest rate sensitivity and duration of the Fund's portfolio.
The Fund may take long or short positions in so-called credit default swaps
or other credit derivatives as an alternative to buying or selling debt
securities themselves or otherwise to increase the Fund's total return. The
Fund may also invest in money market securities when the Fund's sub-adviser
expects the return on such securities to exceed the return on securities with
longer durations.

- 1 -

In managing the Fund, the Fund's sub-adviser will allocate the Fund's assets
among issuers, types of securities, industries, interest rates, and
geographical regions, including emerging markets. An investment team located
in London will make top-down investment allocation decisions. Subject to the
oversight of this investment team, other investment teams located in various
geographical regions or specializing in particular types of investments will
implement those asset allocation decisions by selecting the specific
securities in which the Fund will invest. In this way, the Fund's sub-adviser
attempts to construct a portfolio representing many of the firm's "best
ideas." The Fund's sub-adviser will change asset allocations and the Fund's
portfolio securities in response to changes in its assessment of market,
economic, political, and other factors. The sub-adviser may sell securities
when it believes that they no longer offer attractive potential future
returns compared to other investment opportunities or that they present
undesirable risks, or in order to limit losses on securities that have
declined in value. The Fund's sub-adviser may trade the Fund's portfolio
securities more frequently than many other mutual funds. Frequent trading of
the Fund's portfolio securities will result in relatively high transaction
costs and may result in taxable capital gains.

PRINCIPAL RISKS.

-- It is possible to lose money on an investment in the Fund.

-- FOREIGN INVESTMENT RISK. Adverse political, regulatory, market, or
economic developments in foreign countries can affect issuers located in
those countries. Investments in foreign countries may also be subject to
foreign withholding taxes.

-- FOREIGN CURRENCIES RISK. Investments in foreign securities are normally
denominated and traded in foreign currencies. The value of the Fund's
assets may be affected favorably or unfavorably by currency exchange
rates, currency exchange control regulations, and restrictions or
prohibitions on the repatriation of foreign currencies.

-- GEOGRAPHIC FOCUS RISK. There is no limit on the amount of the Fund's
assets that may be invested in securities of issuers domiciled in any one
country. The Fund may, from time to time, invest more than 25% of its net
assets in one or more developed countries. To the extent the Fund invests
a substantial amount of its assets in one country, its performance may at
times be worse than the performance of other mutual funds that invest
more broadly.

-- INTEREST RATE RISK. Interest rate increases can cause the price of a
debt security to decrease. In addition, if a security is prepaid in a
period of falling interest rates, the Fund may have to reinvest the
proceeds in lower-yielding investments. Interest rate risk is generally
greater in the case of securities with longer durations and in the case
of portfolios of securities with longer average durations.

-- CREDIT RISK. The ability, or perceived ability, of the issuer of a debt
security to make timely payments of interest and principal on the
security will affect the value of the security.

-- INFLATION/DEFLATION RISK. Inflation risk is the risk that the value of
the Fund's investments may decline as inflation reduces the value of
money. Deflation risk is the risk that prices throughout the economy may
decline over time, which may have an adverse effect on the
creditworthiness of issuers in whose securities the Fund invests.

-- EXTENSION RISK. During periods of rising interest rates, the average
life of certain types of securities may be extended because of slower
than expected principal

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payments. This may lock in a below-market interest rate, increase the
security's duration, and reduce the value of the security.

-- HIGH-YIELD/JUNK BONDS RISK. Securities rated below investment grade
("high-yield bonds" or "junk bonds") lack outstanding investment
characteristics and have speculative characteristics and are subject to
greater credit and market risks than higher-rated securities. The lower
ratings of junk bonds reflect a greater possibility that adverse changes
in the financial condition of the issuer or in general economic
conditions, or an unanticipated rise in interest rates, may impair the
ability of the issuer to make payments of interest and principal. If this
were to occur, the values of such securities held by the Fund may become
more volatile.

-- MORTGAGE AND ASSET-BACKED SECURITIES RISK. Mortgage-backed and
asset-backed investments tend to increase in value less than other debt
securities when interest rates decline, but are subject to similar risk
of decline in market value during periods of rising interest rates. The
values of mortgage-backed and asset-backed securities become more
volatile as interest rates rise. In a period of declining interest rates,
the Fund may be required to reinvest more frequent prepayments on
mortgage-backed and asset-backed investments in lower-yielding
investments. Asset-backed securities in which the Fund invests may have
underlying assets that include motor vehicle installment sales or
installment loan contracts, leases of various types of real and personal
property and receivables from credit card agreements. Like mortgages
underlying mortgage-backed securities, underlying automobile sales
contracts or credit card receivables are subject to prepayment, which may
reduce the overall return to certificate holders. Certificate holders may
also experience delays in payment on the certificates if the full amounts
due on underlying sales contracts or receivables are not realized by the
trust because of unanticipated legal or administrative costs of enforcing
the contracts or because of depreciation or damage to the collateral
(usually automobiles) securing certain contracts, or other factors.

-- U.S. GOVERNMENT SECURITIES RISK. Securities issued or guaranteed by
certain agencies and instrumentalities of the U.S. Government are not
supported by the full faith and credit of the United States. For example,
mortgage-backed bonds issued by Fannie Mae or Freddie Mac are backed only
by the credit of those issuers. Investments in these securities are also
subject to interest rate risk (as described above under "Interest Rate
Risk"), prepayment risk (as described above under "Mortgage and
Asset-Backed Securities Risk"), extension risk (as described above under
"Extension Risk"), and the risk that the value of the securities will
fluctuate in response to political, market, or economic developments.

-- LIQUIDITY RISK. The Fund may find it difficult to sell or to close out
certain investments at favorable prices or times. Illiquid securities may
be highly volatile and difficult to value.

-- DERIVATIVES RISK. Derivative transactions typically involve leverage
and may be highly volatile. It is possible that a derivative transaction
will result in a loss greater than the principal amount invested, and the
Fund may not be able to close-out a derivative transaction at a favorable
time or price.

- 3 -

-- WARRANTS RISK. The Fund may invest in bonds issued with warrants
attached to purchase equity securities. These instruments have many
characteristics of convertible bonds and their prices may, to some
degree, reflect the performance of the underlying stock.

-- EMERGING MARKET SECURITIES RISK. The Fund may invest in "emerging
market" countries whose securities markets may experience heightened
levels of volatility. The risks of investing in emerging markets include
greater political and economic uncertainties than in foreign developed
markets, currency transfer restrictions, a more limited number of
potential buyers, and an emerging market country's dependence on revenue
from particular commodities or international aid. Additionally, the
securities markets and legal systems in emerging market countries may
only be in a developmental stage and may provide few, or none, of the
advantages or protections of markets or legal systems available in more
developed countries. Emerging market countries may experience extremely
high levels of inflation, which may adversely affect those countries'
economies, currencies, and securities markets. Also, emerging market
issuers are often smaller and less well-known than larger, more widely
held companies, and involve certain special risks associated with smaller
capitalization companies.

-- MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its sub-adviser to manage its portfolio
successfully. The Fund's sub-adviser and the investment team will apply
investment techniques and risk analyses in making investment decisions
for the Fund, but there can be no guarantee that these will produce the
desired results.

-- FREQUENT TRADING/PORTFOLIO TURNOVER RISK. Frequent trading of the
Fund's portfolio securities will result in relatively high transaction
costs and may result in taxable capital gains. The Fund's sub-adviser
currently expects that the portfolio turnover rate for the Fund's current
fiscal year will be greater than 400%.

-- NON-DIVERSIFICATION RISK. The Fund is a non-diversified investment
company. It may invest a greater percentage of its assets in a particular
issuer or group of issuers than a diversified fund. To the extent the
Fund invests a significant portion of its assets in the securities of a
particular issuer, it will be subject to an increased risk of loss if the
market value of the issuer's securities declines.

------------

Changes in investment objective and policies. The policy described above
requiring the Fund to invest at least 80% of its net assets in certain
investments may be changed by the Trustees upon at least 60 days' prior written
notice to shareholders. Except for any policy described in this prospectus or in
the SAI as fundamental, the Fund's investment objective and policies may be
changed by the Trustees without a vote of the shareholders.

- 4 -

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FEES AND EXPENSES

THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
INVESTOR SHARES OF THE FUND.

SHAREHOLDER FEES (paid directly from your investment):

MAXIMUM SALES LOAD IMPOSED ON PURCHASES None
MAXIMUM DEFERRED SALES LOAD None
MAXIMUM SALES LOAD IMPOSED ON REINVESTED DIVIDENDS None
REDEMPTION FEE 2.00%(1)
EXCHANGE FEE None

(1) Shares of the Fund held for two months or less are subject to a
redemption fee of 2.00%.

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets):

SCHRODER
STRATEGIC
BOND
FUND

Management Fees (1) 0.75%
Distribution (12b-1) Fees None
Other Expenses (1)(2) 1.21%
Total Annual Fund Operating Expenses 1.96%
Less: Fee Waiver and Expense Limitation (3) (0.81%)
Net Expenses (3) 1.15%

(1) Management Fees for the Fund include all fees payable to the Fund's
adviser and its affiliates for investment advisory and fund administration
services. The Fund also pays administrative fees directly to SEI
Investments Global Fund Services, and those fees are included under "Other
Expenses."

(2) "Other Expenses" for the Fund are based on estimated amounts for the
Fund's current fiscal year.

(3) The "Net Expenses" shown for the Fund reflect the effect of
contractually imposed fee waivers and/or expense limitations, in effect
until June 30, 2007, on the Total Annual Fund Operating Expenses of the
Fund. In order to limit the expenses of the Fund's Investor Shares, the
Fund's adviser has contractually agreed to reduce its compensation (and,
if necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses, which may include typically non-recurring expenses
such as, for example, organizational expenses, litigation expenses, and
shareholder meeting expenses) until June 30, 2007 to the extent that the
Total Annual Fund Operating Expenses of the Fund allocable to its Investor
Shares exceed the annual rate of 1.15% (based on the average daily net
assets attributable to the Fund's Investor Shares). The fee waiver and/or
expense limitation for the Fund may only be terminated during its term by
the Board of Trustees.

- 5 -

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EXAMPLE

This Example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in Investor Shares of the Fund
for the time periods indicated and then redeem all of your Investor Shares at
the end of those periods. The Example also assumes that your investment earns
a 5% return each year and that the Fund's operating expenses for each year
are the same as the Fund's Total Annual Fund Operating Expenses shown above
(except that, in the first year, the operating expenses are the same as the
Fund's Net Expenses shown above). Your actual costs may be higher or lower.
Based on these assumptions, your costs would be:

1 YEAR 3 YEARS
------ -------
SCHRODER STRATEGIC BOND FUND $117 $537
---- ----

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PRINCIPAL RISKS OF INVESTING IN THE FUND

The Fund may not achieve its objective. The following provides more detail
about certain of the Fund's principal risks and the circumstances which could
adversely affect the value of the Fund's shares or its investment return.

-- INTEREST RATE RISK. The values of bonds and other debt instruments usually
rise and fall in response to changes in interest rates. Declining interest
rates generally increase the values of existing debt instruments, and rising
interest rates generally reduce the value of existing debt instruments.
Interest rate risk is generally greater for investments with longer durations
or maturities. Some investments give the issuer the option to call or redeem
an investment before its maturity date. If an issuer calls or redeems an
investment during a time of declining interest rates, the Fund might have to
reinvest the proceeds in an investment offering a lower yield, and therefore
might not benefit from any increase in value as a result of declining
interest rates.

-- CREDIT RISK. The ability, or perceived ability, of the issuer of a debt
security to make timely payments of interest and principal on the security
will affect the value of the security. It is possible that the ability of an
issuer to meet its obligations will decline substantially during the period
when the Fund owns securities of that issuer, or that the issuer will default
on its obligations. An actual or perceived deterioration in the ability of an
issuer to meet its obligations will likely have an adverse effect on the
value of the issuer's securities.

Up to 40% of the Fund's total assets may be invested in securities rated
below "investment grade", sometimes referred to as "junk bonds" (or, if
unrated, determined by the Fund's adviser to be of comparable quality). If a
security has been rated by more than one nationally recognized statistical
rating organization the Fund's adviser will consider the highest rating for
the purposes of determining whether the security is of "investment grade."
The Fund will not necessarily dispose of a security held by it if its rating
falls below investment grade, although the Fund's adviser will consider
whether the security continues to be an appropriate investment for the Fund.
The Fund considers whether a security is of "investment grade" only at the
time of purchase.

Credit risk is generally greater for investments issued at less than their
face values and required to make interest payments only at maturity rather
than at intervals during the life of the investment. Credit rating agencies
base their ratings largely on the issuer's historical financial condition and
the rating agencies' investment analysis at the time of rating. The rating
assigned to any particular investment does not necessarily reflect the
issuer's current financial condition, and does not reflect an assessment of
an investment's volatility or liquidity. Although investment grade
investments generally have lower credit risk than investments rated below
investment grade, they may share some of the risks of lower-rated
investments, including the possibility that the issuers may be unable to make
timely payments of interest and principal and thus default.

-- HIGH-YIELD/JUNK BONDS RISK. The Fund may invest up to 40% of its total
assets in securities rated below "investment grade" (commonly known as "junk
bonds") (or, if unrated, determined by the Fund's adviser to be of comparable
quality) (see "Credit Risk", above), although normally the Fund will not
invest in securities unless a nationally recognized statistical rating
organization (for example, Moody's Investor Service, Inc., Standard & Poor's
Rating Service, or Fitch Investors Service, Inc.) has rated the securities
CC- (or the equivalent) or better, or the Fund's adviser has determined the
securities to

- 7 -

be of comparable quality. The lower ratings of certain securities held by the
Fund reflect a greater possibility that adverse changes in the financial
condition of the issuer or in general economic conditions, or both, or an
unanticipated rise in interest rates, may impair the ability of the issuer to
make payments of interest and principal. The inability (or perceived
inability) of issuers to make timely payment of interest and principal would
likely make the values of securities held by the Fund more volatile and could
limit the Fund's ability to sell its securities at prices approximating the
values the Fund has placed on such securities. In the absence of a liquid
trading market for securities held by them, the Fund at times may be unable
to establish the fair value of such securities. To the extent the Fund
invests in securities in the lower rating categories, the achievement of the
Fund's goals is more dependent on the Fund adviser's investment analysis than
would be the case if the Fund was investing in securities in the higher
rating categories.

-- EXTENSION RISK. During periods of rising interest rates, the average life
of certain types of securities may be extended because of slower than
expected principal payments. This may lock in a below-market interest rate,
increase the security's duration, and reduce the value of the security.

-- INFLATION/DEFLATION RISK. Inflation risk is the risk that the Fund's
assets or income from the Fund's investments may be worth less in the future
as inflation decreases the value of money. As inflation increases, the real
value of the Fund's portfolio could decline. Deflation risk is the risk that
prices throughout the economy may decline over time -- the opposite of
inflation. Deflation may have an adverse effect on the creditworthiness of
issuers and may make issuer default more likely, which may result in a
decline in the value of the Fund's portfolio.

-- MORTGAGE AND ASSET-BACKED SECURITIES RISK. Mortgage-backed securities,
including collateralized mortgage obligations and certain stripped
mortgage-backed securities, represent a participation in, or are secured by,
mortgage loans. Asset-backed securities are structured like mortgage-backed
securities, but instead of mortgage loans or interests in mortgage loans, the
underlying assets may include such items as motor vehicle installment sales
or installment loan contracts, leases of various types of real and personal
property and receivables from credit card agreements. The ability of an
issuer of asset-backed securities to enforce its security interest in the
underlying assets may be limited. Traditional debt investments typically pay
a fixed rate of interest until maturity, when the entire principal amount is
due. By contrast, payments on mortgage-backed and many asset-backed
investments typically include both interest and partial payment of principal.
Principal may also be prepaid voluntarily, or as a result of refinancing or
foreclosure. The Fund may have to invest the proceeds from prepaid
investments in other investments with less attractive terms and yields. As a
result, these securities may have less potential for capital appreciation
during periods of declining interest rates than other securities of
comparable maturities, although they may have a similar risk of decline in
market value during periods of rising interest rates. Because the prepayment
rate generally declines as interest rates rise, an increase in interest rates
will likely increase the duration, and thus the volatility, of
mortgage-backed and asset-backed securities. Duration is a measure of the
expected life of a fixed income security that is used to determine the
sensitivity of the security's price to changes in interest rates. Unlike the
maturity of a fixed income security, which measures only the time until final
payment is due, duration takes into account the time until all payments of
interest and principal on a security are expected to be made, including how
these payments are affected by prepayments and by changes in interest rates.
Some mortgage-backed and asset-backed investments receive only the interest
portion ("IOs") or the principal portion ("POs") of

- 8 -

payments on the underlying assets. The yields and values of these investments
are extremely sensitive to changes in interest rates and in the rate of
principal payments on the underlying assets. IOs tend to decrease in value if
interest rates decline and rates of repayment (including prepayment) on the
underlying mortgages or assets increase; it is possible that the Fund may
lose the entire amount of its investment in an IO due to a decrease in
interest rates. Conversely, POs tend to decrease in value if interest rates
rise and rates of repayment decrease. Moreover, the market for IOs and POs
may be volatile and limited, which may make them difficult for the Fund to
buy or sell. The Fund may gain investment exposure to mortgage-backed and
asset-backed investments by entering into agreements with financial
institutions to buy the investments at a fixed price at a future date. The
Fund may or may not take delivery of the investments at the termination date
of such an agreement, but will nonetheless be exposed to changes in value of
the underlying investments during the term of the agreement.

-- LIQUIDITY RISK. Liquidity risk exists when particular investments are
difficult to purchase or sell. The Fund's investments in illiquid securities
may reduce the returns of the Fund because it may be unable to sell the
illiquid securities at anadvantageous time or price. Investments in foreign
securities, derivatives, or securities with substantial market and/or credit
risk tend to have the greatest exposure to liquidity risk. Illiquid
securities may be highly volatile and difficult to value.

-- DERIVATIVES RISK. Derivatives are financial contracts whose value depends
on, or derives from, the value of an underlying asset, reference rate, or
index. The Fund's use of derivative instruments involves risks different
from, and possibly greater than, the risks associated with investing directly
in securities and other traditional investments. Derivatives are subject to a
number of risks described elsewhere in this section, such as liquidity risk,
interest rate risk, and credit risk, and the risk that a derivative
transaction may not have the effect the Fund's sub-adviser anticipated.
Derivatives also involve the risk of mispricing or improper valuation and the
risk that changes in the value of the derivative may not correlate perfectly
with the underlying asset, rate, or index. Derivative transactions typically
involve leverage and may be highly volatile. Use of derivatives other than
for hedging purposes may be considered speculative, and when the Fund invests
in a derivative instrument it could lose more than the principal amount
invested. Also, suitable derivative transactions may not be available in all
circumstances and there can be no assurance that the Fund will engage in
these transactions to reduce exposure to other risks when that would be
beneficial. Many derivative transactions are entered into "over the counter"
(not on an exchange or contract market); as a result, the value of such a
derivative transaction will depend on the ability and willingness of the
Fund's counterparty to perform its obligations under the transaction. The
Fund may be required to segregate certain of its assets on the books of its
custodian in respect of derivatives transactions entered into by the Fund.
See the Fund's SAI for more information.

-- CONVERTIBLE SECURITIES RISK. The Fund may invest in convertible
securities, which are corporate debt securities that may be converted at
either a stated price or stated rate into underlying shares of common stock,
and so subject to the risks of investments in both debt securities and equity
securities. The market value of convertible securities tends to decline as
interest rates increase and, conversely, tends to increase as interest rates
decline. In addition, because of the conversion feature, the market value of
convertible securities tends to vary with fluctuations in the market value of
the underlying common stocks and, therefore, also will react to variations in
the general market for equity securities.

- 9 -

-- WARRANTS RISK. The Fund may invest in bonds issued with warrants attached
to purchase equity securities. These instruments have many characteristics of
convertible bonds and their prices may, to some degree, reflect the
performance of the underlying stock.

-- FOREIGN INVESTMENT RISK. Investments in foreign securities entail certain
risks. There may be a possibility of nationalization or expropriation of
assets, confiscatory taxation, political or financial instability, and
diplomatic developments that could affect the value of the Fund's investments
in certain foreign countries. In addition, there may be less information
publicly available about a foreign issuer than about a U.S. issuer, and
foreign issuers are not generally subject to accounting, auditing, and
financial reporting standards and practices comparable to those in the United
States. The securities of some foreign issuers are less liquid and at times
more volatile than securities of comparable U.S. issuers. Foreign brokerage
commissions and other fees are also generally higher than in the United
States. Foreign settlement procedures and trade regulations may involve
certain risks (such as delay in payment or delivery of securities or in the
recovery of the Fund's assets held abroad) and expenses not present in the
settlement of domestic investments.

In addition, legal remedies available to investors in certain foreign
countries may be more limited than those available to investors in the United
States or in other foreign countries. The willingness and ability of foreign
governmental entities to pay principal and interest on government securities
depends on various economic factors, including the issuer's balance of
payments, overall debt level, and cash-flow considerations related to the
availability of tax or other revenues to satisfy the issuer's obligations. If
a foreign governmental entity defaults on its obligations on the securities,
the Fund may have limited recourse available to it. The laws of some foreign
countries may limit the Fund's ability to invest in securities of certain
issuers located in those countries.

Special tax considerations apply to the Fund's investments in foreign
securities. In determining whether to invest the Fund's assets in debt
securities of foreign issuers, the Fund's sub-adviser considers the likely
impact of foreign taxes on the net yield available to the Fund and its
shareholders. Income and/or gains received by the Fund from sources within
foreign countries may be reduced by withholding and other taxes imposed by
such countries. Tax conventions between certain countries and the United
States may reduce or eliminate such taxes. Any such taxes paid by the Fund
will reduce its income available for distribution to shareholders. In certain
circumstances, the Fund may be able to pass through to shareholders credits
for foreign taxes paid. Certain of these risks may also apply to some extent
to investments in U.S. companies that are traded in foreign markets, or
investments in U.S. companies that have significant foreign operations.

In addition, the Fund's investments in foreign securities or foreign
currencies may increase or accelerate the Fund's recognition of ordinary
income and may affect the timing or character of the Fund's distributions.

-- FOREIGN CURRENCIES RISK. Since foreign securities normally are denominated
and traded in foreign currencies, the value of the Fund's assets may be
affected favorably or unfavorably by currency exchange rates, currency
exchange control regulations, foreign withholding taxes, and restrictions or
prohibitions on the repatriation of foreign currencies. The Fund may, but is
not required to, buy or sell foreign currencies and options and futures
contracts on foreign currencies for hedging purposes in connection with its
foreign investments.

- 10 -

If the Fund purchases securities denominated in foreign currencies, a change
in the value of any such currency against the U.S. dollar will result in a
change in the U.S. dollar value of the Fund's assets and the Fund's income
available for distribution. Officials in foreign countries may from time to
time take actions in respect of their currencies which could significantly
affect the value of the Fund's assets denominated in those currencies or the
liquidity of such investments. For example, a foreign government may
unilaterally devalue its currency against other currencies, which would
typically have the effect of reducing the U.S. dollar value of investments
denominated in that currency. A foreign government may also limit the
convertibility or repatriation of its currency or assets denominated in its
currency, which would adversely affect the U.S. dollar value and liquidity of
investments denominated in that currency. In addition, although at times most
of the Fund's income may be received or realized in these currencies, the
Fund will be required to compute and distribute its income in U.S. dollars.
As a result, if the exchange rate for any such currency declines after the
Fund's income has been earned and translated into U.S. dollars but before
payment to shareholders, the Fund could be required to liquidate portfolio
securities to make such distributions. Similarly, if the Fund incurs an
expense in U.S. dollars and the exchange rate declines before the expense is
paid, the Fund would have to convert a greater amount of U.S. dollars to pay
for the expense at that time than it would have had to convert at the time
the Fund incurred the expense. The Fund may, but is not required to, buy or
sell foreign currencies and options and futures contracts on foreign
currencies for hedging purposes in connection with its foreign investments.

-- EMERGING MARKET SECURITIES RISK. Investing in emerging market securities
poses risks different from, and/or greater than, risks of investing in
domestic securities or in the securities of foreign, developed countries.
These risks include: smaller market capitalization of securities markets,
which may suffer periods of relative illiquidity; significant price
volatility; restrictions on foreign investment; and possible repatriation of
investment income and capital. In addition, foreign investors may be required
to register the proceeds of sales, and future economic or political crises
could lead to price controls, forced mergers, expropriation or confiscatory
taxation, seizure, nationalization or the creation of government monopolies.
The currencies of emerging market countries may experience significant
declines against the U.S. dollar, and devaluation may occur subsequent to
investments in these currencies by the Fund. Inflation and rapid fluctuations
in inflation rates have had, and may continue to have, negative effects on
the economies and securities markets of certain emerging market countries.
Although many of the emerging market securities in which the Fund may invest
are traded on securities exchanges, they may trade in limited volume, and the
exchanges may not provide all of the conveniences or protections provided by
securities exchanges in more developed markets.

Additional risks of emerging market securities may include: greater social,
economic and political uncertainty and instability; more substantial
governmental involvement in the economy; less governmental supervision and
regulation; unavailability of currency hedging techniques; companies that are
newly organized and small; differences in auditing and financial reporting
standards, which may result in unavailability of material information about
issuers; and less developed legal systems. In addition, emerging securities
markets may have different clearance and settlement procedures, which may be
unable to keep pace with the volume of securities transactions or otherwise
make it difficult to engage in such transactions. Settlement problems may
cause the Fund to miss attractive investment

- 11 -

opportunities, hold a portion of its assets in cash pending investment, or be
delayed in disposing of a portfolio security. Such a delay could result in
possible liability to a purchaser of the security.

-- GEOGRAPHIC FOCUS RISK. To the extent that the Fund invests a substantial
amount of its assets in one country, its performance may at times be worse
than the performance of other mutual funds that invest more broadly.

-- MANAGEMENT RISK. Because the Fund is actively managed, the Fund's
investment return depends on the ability of its sub-adviser to manage its
portfolio successfully. The Fund's sub-adviser and its investment team will
apply investment techniques and risk analyses in making investment decisions
for the Fund, but there can be no guarantee that these will produce the
desired results.

-- FREQUENT TRADING/PORTFOLIO TURNOVER RISK. The length of time the Fund
has held a particular security is not generally a consideration in investment
decisions. The investment policies of the Fund may lead to frequent changes
in the Fund's investments, particularly in periods of volatile market
movements, in order to take advantage of what the Fund's sub-adviser believes
to be temporary disparities in normal yield relationships between securities.
A change in the securities held by the Fund is known as "portfolio turnover."
Portfolio turnover generally involves some expense to the Fund, including
bid-asked spreads, dealer mark-ups and other transaction costs on the sale of
securities and reinvestments in other securities, and may result in the
realization of taxable capital gains (including short-term gains, which are
generally taxed to shareholders at ordinary income rates). The trading costs
and tax effects associated with portfolio turnover may adversely affect the
Fund's performance. During periods when the Fund experiences high portfolio
turnover rates, these effects are likely to be more pronounced. The Fund's
adviser currently expects that the portfolio turnover rate for the current
fiscal year will be greater than 400% for the Fund. Consult your tax advisor
regarding the Fund's portfolio turnover rate on your investments.

-- U.S. GOVERNMENT SECURITIES RISK. U.S. Government securities include a
variety of securities that differ in their interest rates, maturities, and
dates of issue. While securities issued or guaranteed by some agencies or
instrumentalities of the U.S. Government (such as the Government National
Mortgage Association) are supported by the full faith and credit of the
United States, securities issued or guaranteed by certain other agencies or
instrumentalities of the U.S. Government (such as Federal Home Loan Banks)
are supported by the right of the issuer to borrow from the U.S. Government,
and securities issued or guaranteed by certain other agencies and
instrumentalities of the U.S. Government (such as Fannie Mae and Freddie Mac)
are supported only by the credit of the issuer itself. Investments in these
securities are also subject to interest rate risk (as described above under
"Interest Rate Risk"), prepayment risk (as described above under "Mortgage
and Asset-Backed Securities Risk"), extension risk (as described above under
"Extension Risk"), and the risk that the value of the securities will
fluctuate in response to political, market, or economic developments.

-- NON-DIVERSIFICATION RISK. The Fund is a non-diversified investment
company. It therefore may invest a greater percentage of its assets in a
particular issuer or group of issuers than a diversified fund. To the extent
the Fund invests a significant portion of its assets in the securities of a
particular issuer, it will be subject to an increased risk of loss if the
market value of the issuer's securities declines.

- 12 -

--------------------------------------------------------------------------------
NON-PRINCIPAL INVESTMENT STRATEGIES AND TECHNIQUES

In addition to the principal investment strategies described in the Principal
Investment Strategies section above, the Fund may at times, but is not
required to, use the strategies and techniques described below, which involve
certain special risks. This Prospectus does not attempt to disclose all of
the various investment techniques and types of securities that the Fund's
sub-adviser might use in managing the Fund. As in any mutual fund, investors
must rely on the professional investment judgment and skill of the Fund's
adviser.

-- SHORT SALES. The Fund may sell a security short when the Fund's
sub-adviser anticipates that the price of the security will decline. The Fund
may make a profit or incur a loss depending on whether the market price of
the security decreases or increases between the date of the short sale and
the date on which the Fund "closes" the short position. A short position will
result in a loss if the market price of the security in question increases
between the date when the Fund enters into the short position and the date
when the Fund closes the short position. Such a loss could theoretically be
unlimited in a case where such Fund is unable, for whatever reason, to close
out its short position. In addition, short positions may result in a loss if
a portfolio strategy of which the short position is a part is otherwise
unsuccessful.

-- WHEN-ISSUED, DELAYED DELIVERY, AND FORWARD COMMITMENT TRANSACTIONS. The
Fund may purchase securities on a when-issued, delayed delivery, or forward
commitment basis. These transactions involve a commitment by the Fund to
purchase a security for a predetermined price or yield, with payments and
delivery taking place more than seven days in the future, or after a period
longer than the customary settlement period for that type of security. These
transactions may increase the overall investment exposure for the Fund and
involve a risk of loss if the value of the securities declines prior to the
settlement date.

-- SECURITIES LOANS AND REPURCHASE AGREEMENTS. The Fund may lend portfolio
securities to broker-dealers, and may enter into repurchase agreements. These
transactions must be fully collateralized at all times, but involve some risk
to the Fund if the other party should default on its obligation and the Fund
is delayed or prevented from recovering the collateral. The Fund may enter
into securities loans and repurchase agreements as a non-principal investment
strategy, as a way to recognize additional current income on securities that
it owns.

-- TEMPORARY DEFENSIVE STRATEGIES. At times, the Fund's sub-adviser may judge
that conditions in the securities markets make pursuing the Fund's investment
strategy inconsistent with the best interests of its shareholders. At such
times, the Fund's sub-adviser may, but is not required to, take temporary
"defensive" positions that are inconsistent with the Fund's principal
investment strategies in attempting to respond to adverse market, economic,
political, or other conditions. In implementing these defensive strategies,
the Fund would invest in investment grade fixed income securities, cash or
money market instruments to any extent the Fund's sub-adviser considers
consistent with such defensive strategies. It is impossible to predict when,
or for how long, the Fund would use these alternate strategies. One risk of
taking such temporary defensive positions is that the Fund may not achieve
its investment objective.

-- PRICING. At times market conditions might make it hard to value some
investments. If the Fund has valued securities it holds too high, you may end
up paying too much for the Fund's shares when you buy into the Fund. If the
Fund underestimates the price of its

- 13 -

portfolio securities, you may not receive the full market value for your Fund
shares when you sell. To the extent the Fund relies on a pricing service to
value some or all of its portfolio securities, it is possible that the
pricing information provided by the service will not reflect the actual price
the Fund would receive upon a sale of the security.

-- OTHER INVESTMENTS. The Fund may also invest in other types of securities
and utilize a variety of investment techniques and strategies that are not
described in this Prospectus. These securities and techniques may subject the
Fund to additional risks. Please see the SAI for additional information about
the securities and investment techniques described in this Prospectus and
about additional techniques and strategies that may be used by the Fund.

-- SECURITIES IN DEFAULT. The Fund may invest in securities that are in
default. Securities that are in default are subject generally to the risks
described above under "Principal Risks of Investing in the Fund --
High-Yield/Junk Bonds Risk", and which offer little or no prospect for the
payment of the full amount of unpaid principal and interest, although
normally the Fund will not invest in securities unless a nationally
recognized statistical rating organization (for example, Moody's Investor
Service, Inc., Standard & Poor's Rating Service, or Fitch Investors Service,
Inc.) has rated the securities CC- (or the equivalent) or better, or the
Fund's adviser has determined the securities to be of comparable quality.

-- PERCENTAGE INVESTMENT LIMITATIONS. Unless otherwise noted, all percentage
limitations on Fund investments will apply at the time of investment,
including the requirement that the Fund normally invest at least 80% of its
net assets in debt securities. An investment by the Fund would not be
considered to violate any percentage limitation unless an excess or
deficiency were to occur or exist immediately after and as a result of an
investment. References in the discussion of the Fund's investment policies
above to 80% of the Fund's net assets refer to that percentage of the
aggregate of the Fund's net assets and the amount, if any, of borrowings by
the Fund for investment purposes.

-- PRIVATE PLACEMENTS AND RESTRICTED SECURITIES. The Fund may invest in
securities that are purchased in private placements. Because there may be
relatively few potential purchasers for such investments, especially under
adverse market or economic conditions or in the event of adverse changes in
the financial condition of the issuer, the Fund could find it more difficult
to sell such securities when the Fund's adviser believes it advisable to do
so or may be able to sell such securities only at prices lower than if such
securities were more widely held. At times, it may also be more difficult to
determine the fair value of such securities for purposes of computing the
Fund's net asset value. The Fund's sale of such investments may also be
restricted under securities laws. In the event that the Trustees, or persons
designated by the Trustees, determine that a security is "readily marketable"
pursuant to these procedures, and the Fund is not able to sell such security
at the price that such persons anticipate, the Fund's net asset value will
decrease.

- 14 -

--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND

The Trust is governed by a Board of Trustees. The Board of Trustees of the
Trust has retained Schroder Investment Management North America Inc.
("Schroders") to serve as the Fund's adviser and to manage the investments of
the Fund. Subject to the control of the Board of Trustees, Schroders also
manages the Fund's other affairs and business.

Schroder Investment Management North America Limited ("SIMNA Ltd."), an
affiliate of Schroders, serves as sub-adviser responsible for portfolio
management of the Fund.

Schroders (itself and its predecessors) has been an investment manager since
1962, and serves as investment adviser to the Fund and as investment adviser
to other mutual funds and a broad range of institutional investors. Schroders
plc, Schroders' ultimate parent, is a global asset management company with
approximately $211 billion under management as of December 31, 2005.
Schroders and its affiliates have clients that are major financial
institutions including banks and insurance companies, public and private
pension funds, endowments and foundations, high net worth individuals,
financial intermediaries and retail investors. Schroders plc has one of the
largest networks of offices of any dedicated asset management company and
over 300 portfolio managers and analysts covering the world's investment
markets.

-- MANAGEMENT FEES. The Fund expects to pay management fees for investment
management services to Schroders at the annual rate (based on the Fund's
average daily net assets) of 0.75%. As compensation for SIMNA Ltd.'s
services as sub-adviser, Schroders pays to SIMNA Ltd. fifty percent of the
investment advisory fees Schroders receives from the Fund.

-- EXPENSE LIMITATIONS AND WAIVERS. In order to limit the expenses of the Fund,
Schroders has contractually agreed to reduce its compensation (and, if
necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses, which may include typically non-recurring expenses
such as, for example, organizational expenses, litigation expenses, and
shareholder meeting expenses) until June 30, 2007 to the extent that the
Total Annual Fund Operating Expenses of the Fund allocable to its Investor
Shares exceed the annual rate of 1.15% (based on the average daily net
assets attributable to the Fund's Investor Shares).

-- PORTFOLIO MANAGEMENT. The following portfolio managers at Schroders and
SIMNA Ltd. have primary responsibility for making investment decisions for
the Fund. Each portfolio manager's recent professional experience is also
shown. The Fund's SAI provides additional information about each portfolio
manager's compensation, other accounts managed by the portfolio managers,
and each portfolio manager's ownership of securities in the Fund.

RECENT PROFESSIONAL
FUND NAME TITLE SINCE EXPERIENCE

Schroder Strategic Bond Robert Michele, Global June 30, Mr. Michele is Global Head of
Fund CFA Head of 2006 Fixed Income of Schroders.
Fixed He has been an employee of
Income Schroders since 1998.
Schroder Strategic Bond Louise Davies Portfolio June 30, Ms. Davies is a Portfolio
Fund Manager 2006 Manager of Schroders.
She has been an employee of
Schroders since 1999.

- 15 -

--------------------------------------------------------------------------------
HOW THE FUND'S SHARES ARE PRICED

The Fund calculates the net asset value of its Investor Shares by dividing
the total value of its assets attributable to its Investor Shares, less its
liabilities attributable to those shares, by the number of Investor Shares
outstanding. The Fund values its Investor Shares as of the close of trading
on the New York Stock Exchange (the "Exchange") (normally 4:00 p.m., Eastern
Time) each day the Exchange is open. The Trust expects that days, other than
weekend days, when the Exchange will not be open are New Year's Day, Martin
Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Securities
for which market quotations are readily available are valued at prices which,
in the opinion of Schroders, most nearly represent the market values of such
securities. Securities for which market values are not readily available, or
for which the Fund's adviser believes the market value is unreliable
(including, for example, certain foreign securities, thinly traded
securities, initial public offerings, or when there is a particular event
that may affect the value of a security), are valued by Schroders at their
fair values pursuant to guidelines established by the Board of Trustees, and
under the ultimate supervision of the Board of Trustees, generally by
reference to other securities or indexes. For instance, a pricing service may
recommend a fair value based generally on prices of comparable securities.
Unlisted securities for which market quotations are readily available
generally are valued at the most recently reported sales prices on any day
or, in the absence of a reported sale price, at mid-market prices. Options
and futures contracts traded on a securities exchange or board of trade
generally are valued at the last reported sales price or, in the absence of a
sale, at the closing mid-market price on the principal exchange where they
are traded. Options and futures not traded on a securities exchange or board
of trade for which over-the-counter market quotations are readily available
are valued at the most recently reported mid-market price. If such prices are
not available, unlisted securities and derivatives are valued by Schroders at
their fair values based on quotations from dealers, and if such quotations
are not available based on factors in the market where such securities trade,
such as security and bond prices, interest rates, and currency exchange
rates. The Fund may invest in foreign securities that are primarily listed on
foreign exchanges that trade on weekends and other days when the Fund does
not price its shares. As a result, the value of the Fund's portfolio
securities may change on days when the price of the Fund's shares is not
calculated. The price of the Fund's shares will reflect any such changes when
the price of the Fund's shares is next calculated, which is the next day the
Exchange is open. The Fund may use fair value pricing more frequently for
securities primarily traded in non-U.S. markets because, among other things,
most foreign markets close well before the Fund values its securities. The
earlier close of these foreign markets gives rise to the possibility that
significant events, including broad market moves, may have occurred in the
interim. The Fund's investments may be priced based on fair values provided
by a third party fair valuation vendor, based on certain factors and
methodologies applied by such vendor, in the event that there is movement in
the U.S. market that exceeds a specific threshold established by the
Schroders' Fair Value Committee in consultation with the Board of Trustees,
pursuant to guidelines established by the Board of Trustees, and under the
ultimate supervision of the Board of Trustees. Short-term investments that
will mature within 60 days are valued by Schroders using amortized cost
pursuant to procedures adopted by the Board of Trustees. The net asset value
of the Fund's Investor Shares may differ from that of its Advisor Shares due
to differences in the expenses of Investor Shares and Advisor Shares.

- 16 -

--------------------------------------------------------------------------------
HOW TO BUY SHARES

The Trust, through its distributor, Schroder Fund Advisors Inc., sells
Investor Shares of the Fund at their net asset value without any sales
charges or loads, so that the full amount of your purchase payment is
invested in the Fund.

You may purchase Investor Shares of the Fund by completing the Account
Application that accompanies this Prospectus, and sending payment by check or
wire as described below. Acceptance of your order will be delayed pending
receipt of additional documentation, such as copies of corporate resolutions
and instruments of authority from corporations, administrators, executors,
personal representatives, directors, or custodians.

The Fund sells its Investor Shares at their net asset value next determined
after the Fund, its transfer agent, Boston Financial Data Services, Inc.
("BFDS"), or an authorized broker or financial institution (as described
below) receives your request in good order (meaning that the request meets
the requirements set out below and in the Account Application, and otherwise
meets the requirements implemented from time to time by the Fund's transfer
agent or the Fund). In order for you to receive the Fund's next determined
net asset value, the Fund, BFDS or the authorized broker or financial
institution must receive your order before the close of trading on the
Exchange (normally 4:00 p.m., Eastern Time). The Trust reserves the right to
reject any order to purchase Investor Shares of any of its Funds. The Trust
generally expects to inform any persons that their purchase has been rejected
within 24 hours.

The minimum investments for initial and additional purchases of Investor
Shares of the Fund are as follows:

INITIAL INVESTMENT ADDITIONAL INVESTMENTS
REGULAR ACCOUNTS $250,000 $1,000

The Trust may, in its sole discretion, waive these minimum initial or
subsequent investment amounts for share purchases by: an employee of
Schroders, any of its affiliates or a financial intermediary authorized to
sell shares of the Fund, or such employee's spouse or life partner, or
children or step-children age 21 or younger; investment advisory clients of
Schroders; and current or former Trustees. For share purchases made through
certain fund networks or other financial intermediaries, the investment
minimums associated with the policies and programs of the fund network or
financial intermediary will apply.

Investor Shares of the Fund are intended for purchase by investors making a
minimum initial investment of $250,000 and purchasing shares directly from
the Fund. Advisor Shares of the Fund are offered through another prospectus
and are intended for investors making a minimum initial investment of $2,500
through a regular account or a traditional or Roth IRA and purchasing shares
through a financial intermediary.

The Fund does not issue share certificates.

The Trust may suspend the offering of Investor Shares of the Fund for any
period of time. The Trust may change any investment minimum from time to
time.

Purchases by check. You may purchase Investor Shares of the Fund by mailing a
check (in U.S. dollars) payable to the Fund. If you wish to purchase Investor
Shares of two or more Funds, make your check payable to Schroder Mutual Funds
and include written instructions as to how the amount of your check should be
allocated among the Funds

- 17 -

whose shares you are purchasing. Schroder Mutual Funds will not accept
third-party checks or starter checks. You should direct your check and your
completed Account Application as follows:

REGULAR MAIL OVERNIGHT OR EXPRESS MAIL
Schroder Mutual Funds Boston Financial Data Services, Inc.
P.O. Box 8507 Attn: Schroder Mutual Funds
Boston, MA 02266 66 Brooks Drive
Braintree, MA 02184

For initial purchases, a completed Account Application must accompany your
check.

Purchases by bank wire. If you make your initial investment by wire, a
completed Account Application must precede your order. Upon receipt of the
Application, BFDS will assign you an account number. BFDS will process wire
orders received prior to the close of trading on the Exchange (normally 4:00
p.m., Eastern Time) on each day the Exchange is open for trading at the net
asset value next determined as of the end of that day. BFDS will process wire
orders received after that time at the net asset value next determined
thereafter.

Please call BFDS at (800) 464-3108 to give notice that you will send funds by
wire, and obtain a wire reference number. (From outside the United States,
please call (617) 483-5000 and ask to speak with a Schroder Mutual Funds
representative.) Please be sure to obtain a wire reference number. Instruct
your bank to wire funds with the assigned reference number as follows:

STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, Massachusetts 02110
ABA No.: 011000028
Attn: Schroder Mutual Funds
DDA No.: 9904-650-0
FBO: Account Registration
A/C: Mutual Fund Account Number
Name of Fund

BFDS will not process your purchase until it receives the wired funds.

Automatic purchases. You can make regular investments of $100 or more per
month or quarter in Investor Shares of the Fund through automatic deductions
from your bank account. Please complete the appropriate section of the
Account Application if you would like to utilize this option. For more
information, please call (800) 464-3108.

Brokers and other financial institutions. You may also buy and exchange
Investor Shares of the Fund through an authorized broker or other financial
institution that has an agreement with Schroders or Schroder Fund Advisors
Inc. The purchase and exchange policies and fees charged by such brokers and
other institutions may be different than those of the Fund. For instance,
banks, brokers, retirement plans and financial advisers may charge
transaction fees and may set different investment minimums or limitations on
buying or exchanging Investor Shares. Please consult a representative of your
financial institution for further information.

Certain brokers or other financial institutions may accept purchase orders
for Investor Shares on behalf of the Fund. Such brokers or financial
institutions may designate other

- 18 -

intermediaries to accept purchase orders on behalf of the Fund. For purposes
of pricing, the Fund will be deemed to have received a purchase order when an
authorized broker or financial institution or, if applicable, a broker or
financial institution's authorized designee, receives the order. Agreements
between such brokers or financial institutions and Schroder Fund Advisors
Inc., the Trust's distributor, provide that these orders will be priced at
the Fund's net asset value next determined after they are received by the
broker or financial institution or authorized designee. Orders received in
good order prior to the close of the Exchange on any day the Exchange is open
for trading will receive the net asset value next determined as of the end of
that day. Orders received after that time will receive the next day's net
asset value.

Brokers or other agents may charge investors a fee for effecting transactions
in shares of the Fund, in addition to any fees the Fund charges.

Purchases in kind. Investors may purchase Investor Shares of the Fund for
cash or in exchange for securities, subject to the determination by Schroders
in its discretion that the securities are acceptable. (For purposes of
determining whether securities will be acceptable, Schroders will consider,
among other things, whether they are liquid securities of a type consistent
with the investment objective and policies of the Fund and have a readily
ascertainable value.) If the Fund receives securities from an investor in
exchange for Investor Shares of the Fund, the Fund will under some
circumstances have the same tax basis in the securities as the investor had
prior to the exchange (and the Fund's gain for tax purposes would be
calculated with regard to the investor's tax basis), and in such cases the
Fund's holding period in those securities would include the investor's
holding period. Any gain on the sale of securities received in exchange for
Investor Shares of the Fund would be subject to distribution as capital gain
to all of the Fund's shareholders. (In some circumstances, receipt of
securities from an investor in exchange for Investor Shares of the Fund may
be a taxable transaction to the investor, in which case the Fund's tax basis
in the securities would reflect the fair market value of the securities on
the date of the exchange, and its holding period in the securities would
begin on that date.) The Fund values securities accepted by Schroders in the
same manner as are the Fund's portfolio securities as of the time of the next
determination of the Fund's net asset value. Although the Fund seeks to
determine the fair value of securities contributed to the Fund, any valuation
that does not reflect fair value may dilute the interests of the purchasing
shareholder or the other shareholders of the Fund. All rights reflected in
the market price of accepted securities at the time of valuation become the
property of the Fund and must be delivered to the Fund upon receipt by the
investor. Investors may realize a taxable gain or loss upon the exchange.
Investors interested in purchases through exchange should telephone Schroders
at (800) 464-3108, their Schroders client representative, or other financial
intermediary.

Certain payments by Schroders or its affiliates. Schroder Fund Advisors Inc.,
Schroders, or their affiliates may, at their own expense and out of their own
assets, provide compensation to financial intermediaries in connection with
sales of Fund shares or shareholder servicing. In some instances, they may
make this compensation available only to certain intermediaries who have sold
or are expected to sell significant amounts of shares of the Fund. If you
purchase or sell shares through an intermediary, the intermediary may charge
a separate fee for its services. Consult your intermediary for information.

- 19 -

If correspondence to the shareholder's address of record is returned, then,
unless BFDS determines the shareholder's new address, BFDS will reinvest
dividends and other distributions returned to it in the Fund, and if the
correspondence included checks, the checks will be canceled and re-deposited
to the shareholder's account at then-current net asset value.

- 20 -

--------------------------------------------------------------------------------
HOW TO SELL SHARES

When you may redeem. You may sell your Investor Shares back to the Fund on
any day the Exchange is open by sending a letter of instruction or stock
power form to Schroder Mutual Funds, or by calling BFDS at (800) 464-3108.
Redemption requests received in good order by Schroder Mutual Funds, BFDS, or
an authorized broker or financial institution (as described below) prior to
the close of the Exchange on any day the Exchange is open for trading will be
priced at the net asset value next determined as of the end of that day.
Orders received after that time will receive the next day's net asset value.
A redemption request is in good order if it includes the exact name in which
the shares are registered, the investor's account number, and the number of
shares or the dollar amount of shares to be redeemed, and, for written
requests, if it is signed in accordance with the account registration. A
bank, broker-dealer, or certain other financial institutions must guarantee
the signature(s) of all account holders for any redemption request in excess
of $50,000, or for any amount being sent to an address or bank account that
is not registered on the account. The Stamp 2000 Medallion Guarantee is the
only acceptable form of guarantee. An investor can obtain this signature
guarantee from a commercial bank, savings bank, credit union, or
broker-dealer that participates in one of the Medallion signature guarantee
programs. You may redeem your shares by telephone only if you elected the
telephone redemption privilege option on your Account Application or
otherwise in writing. Telephone redemption proceeds will be sent only to you
at an address on record with the Fund for at least 30 days. Unless otherwise
agreed, you may only exercise the telephone redemption privilege to redeem
shares worth not more than $50,000. The Trust may require additional
documentation from shareholders that are corporations, partnerships, agents,
fiduciaries, surviving joint owners, those acting through powers of attorney,
or similar delegation.

The Trust will pay you for your redemptions as promptly as possible and in
any event within seven days after the request for redemption is received in
good order. The Trust generally sends payment for shares on the business day
after a request is received. In case of emergencies, the Trust may suspend
redemptions or postpone payment for more than seven days, as permitted by
law. If you paid for your Investor Shares by check, the Trust will not send
you your redemption proceeds until the check you used to pay for the shares
has cleared, which may take up to 15 calendar days from the purchase date.

Brokers and other financial institutions. You may also redeem and exchange
Investor Shares of the Fund through an authorized broker or other financial
institution that has an agreement with Schroders or Schroder Fund Advisors
Inc. The redemption and exchange policies and fees charged by such brokers
and other institutions may be different than those of the Fund. For instance,
banks, brokers, retirement plans and financial advisers may charge
transaction fees and may set different investment minimums or limitations on
exchanging or redeeming Investor Shares. Please consult a representative of
your financial institution for further information.

Certain brokers or other financial institutions may accept redemption orders
for Investor Shares on behalf of the Fund. Such brokers or financial
institutions may designate other intermediaries to accept redemption orders
on behalf of the Fund. For purposes of pricing, the Fund will be deemed to
have received a redemption order when an authorized broker or financial
institution or, if applicable, a broker or financial institution's authorized
designee, receives the order. Agreements between such brokers or financial
institutions and Schroder Fund Advisors Inc., the Trust's distributor,
provide that these orders will be priced at the Fund's net asset value next
determined after they are received by the broker

- 21 -

or financial institution or authorized designee. Orders received in good
order prior to the close of the Exchange on any day the Exchange is open for
trading will receive the net asset value next determined as of the end of
that day. Orders received after that time will receive the next day's net
asset value.

Brokers or other agents may charge investors a fee for effecting transactions
in shares of the Fund, in addition to any fees the Fund charges.

Involuntary redemptions. If, because of your redemptions, your account
balance for the Fund falls below a minimum amount set by the Trustees
(presently $2,000), a Trust may choose to redeem your Investor Shares in the
Fund and pay you for them. You will receive at least 30 days' written notice
before the Trust redeems your Investor Shares, and you may purchase
additional Investor Shares at any time to avoid a redemption. The Trust may
also redeem Investor Shares if you own shares of the Fund above a maximum
amount set by the Trustees. There is currently no maximum, but the Trustees
may establish one at any time, which could apply to both present and future
shareholders.

Suspension. The Trust may suspend the right of redemption of the Fund or
postpone payment by the Fund during any period when: (1) trading on the
Exchange is restricted, as determined by the Securities and Exchange
Commission ("SEC"), or the Exchange is closed; (2) the SEC has by order
permitted such suspension; or (3) an emergency (as defined by rules of the
SEC) exists, making disposal of portfolio investments or determination of the
Fund's net asset value not reasonably practicable.

Redemptions in kind. The Trust does not expect to redeem Investor Shares in
kind under normal circumstances. If the Trust redeems your Investor Shares in
kind, you should expect to incur brokerage expenses and other transaction
costs upon the disposition of the securities you receive from the Fund. In
addition, the price of those securities may change between the time when you
receive the securities and the time when you are able to dispose of them. The
Trust may pay redemption proceeds in any amount with respect to the Fund in
whole or in part by a distribution in kind of securities held by the Fund in
lieu of cash.

General. If you request that your redemption proceeds be sent to you at an
address other than your address of record, or to another party, you must
include a signature guarantee for each signature, by an eligible signature
guarantor, such as a member firm of a national securities exchange or a
commercial bank or trust company located in the United States. If you are a
resident of a foreign country, another type of certification may be required.
For more details, please contact BFDS at (800) 464-3108, your Schroders
client representative or your financial intermediary. The Trust may require
corporations, fiduciaries, and other types of shareholders to supply
additional documents which support their authority to effect a redemption. In
an effort to prevent unauthorized or fraudulent redemption requests by
telephone, BFDS will follow reasonable procedures to confirm that telephone
instructions are genuine. BFDS and the Trust generally will not be liable for
any losses due to unauthorized or fraudulent purchase or redemption requests,
but the applicable party or parties may be liable if they do not follow these
procedures.

Redemption fee. The Fund imposes a 2.00% redemption fee on shares redeemed
(including in connection with an exchange) two months or less from their date
of purchase. The fee is not a sales charge (load); it is paid directly to the
Fund. The purpose of the redemption fee is principally to discourage market
timing, and also to help defray costs incurred by the Fund in connection with
short-term trading by investors in its shares.

To the extent that the redemption fee applies, the price you will receive
when you redeem your shares of the Fund is the net asset value next
determined after receipt of your

- 22 -

redemption request in good order, minus the redemption fee. The redemption
fee is not assessed on shares acquired through the reinvestment of dividends
or distributions paid by the Fund, or shares redeemed through designated
systematic withdrawal plans. The redemption fee does apply to IRAs, and may
also apply to shares held in employer-sponsored retirement accounts (such as
401(k), 403(b), Keogh, profit sharing, SIMPLE IRA, SEP-IRA and money purchase
pension accounts) and shares in retirement plans held in broker omnibus
accounts.

For purposes of computing the redemption fee, redemptions by a shareholder to
which the fee applies will be deemed to have been made on a first-purchased,
first-redeemed basis.

- 23 -

--------------------------------------------------------------------------------
EXCHANGES

You can exchange your Investor Shares of the Fund for Investor Shares of
other funds in the Schroder family of funds at any time at their respective
net asset values. An exchange of shares of the Fund may be subject to a
redemption fee of 2.00% as described above under "Redemption Fee" (such that
the exchange would be made at net asset value minus any redemption fee). The
Trust would treat the exchange as a sale of your Investor Shares, and any
gain on the exchange will generally be subject to tax. For a listing of the
Schroder funds available for exchange and to exchange Investor Shares, please
call (800) 464-3108. (From outside the United States, please call (617)
483-5000 and ask to speak with a representative of the Schroder Mutual
Funds.) In order to exchange shares by telephone, you must complete the
appropriate section of the Account Application. The Trust and Schroders
reserve the right to change or suspend the exchange privilege at any time.
Schroders would notify shareholders of any such change or suspension.

- 24 -

--------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS

The Fund declares dividends from net investment income and distributes these
dividends quarterly. The Fund distributes any net realized capital gain at
least annually. The Fund makes distributions from net capital gain after
applying any available capital loss carryovers.

YOU CAN CHOOSE FROM FOUR DISTRIBUTION OPTIONS:

-- Reinvest all distributions in additional Investor Shares of your Fund;

-- Receive distributions from net investment income in cash while
reinvesting capital gains distributions in additional Investor Shares of
your Fund;

-- Receive distributions from net investment income in additional Investor
Shares of your Fund while receiving capital gain distributions in cash;
or

-- Receive all distributions in cash.

You can change your distribution option by notifying BFDS in writing. If you
do not select an option when you open your account, all distributions by the
Fund will be reinvested in Investor Shares of the Fund. You will receive a
statement confirming reinvestment of distributions in additional Fund shares
promptly following the period in which the reinvestment occurs.

- 25 -

--------------------------------------------------------------------------------
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

Excessive trading can hurt Fund performance, operations, and shareholders.
The Board of Trustees of the Trust has adopted policies and procedures with
respect to frequent purchases and redemptions of Fund shares by Fund
shareholders. The Fund discourages, and does not accommodate, frequent
purchases and redemption of the Fund's shares to the extent Schroders
believes that such trading is harmful to the Fund's shareholders, although
the Fund will not necessarily prevent all frequent trading in its shares. The
Fund reserves the right, in its discretion, to reject any purchase, in whole
or in part (including, without limitation, purchases by persons whose trading
activity Schroders believes could be harmful to the Fund). The Trust or
Schroders may also limit the amount or number of exchanges or reject any
purchase by exchange if the Trust or Schroders believes that the investor in
question is engaged in "market timing activities" or similar activities that
may be harmful to the Fund or its shareholders, although the Trust and
Schroders have not established any maximum amount or number of such exchanges
that may occur in any period. The Trust generally expects to inform any
persons that their purchase has been rejected within 24 hours. In addition,
the Board of Trustees of the Trust has established a 2.00% redemption fee for
shares of the Fund held for two months or less from their date of purchase.
See "How to Sell Shares -- Redemption Fee" for further information. The
ability of Schroders to monitor trades that are placed through omnibus or
other nominee accounts is limited in those instances in which the broker,
retirement plan administrator, or fee-based program sponsor does not provide
complete information to Schroders regarding underlying beneficial owners of
Fund shares. The Trust or its distributor may enter into written agreements
with financial intermediaries who hold omnibus accounts that require the
intermediaries to provide certain information to the Trust regarding
shareholders who hold shares through such accounts and to restrict or
prohibit trading in Fund shares by shareholders identified by the Trust as
having engaged in trades that violate the Trust's "market timing" policies.
The Trust or Schroders may take any steps they consider appropriate in
respect of frequent trading in omnibus accounts, including seeking additional
information from the holder of the omnibus account or potentially closing the
omnibus account (although there can be no assurance that the Trust or
Schroders would do so). Please see the SAI for additional information on
frequent purchases and redemptions of Fund shares. There can be no assurance
that the Fund or Schroders will identify all harmful purchase or redemption
activity, or market timing or similar activities, affecting the Fund, or that
the Fund or Schroders will be successful in limiting or eliminating such
activities.

- 26 -

--------------------------------------------------------------------------------
PAYMENT OF FEES

Subject to general review by the Board of Trustees, the Fund may pay
Schroders or its affiliates, banks, broker-dealers, financial advisors, or
other financial institutions fees for sub-administration, sub-transfer
agency, and other shareholder services associated with shareholders whose
shares are held of record in omnibus or other group accounts. In addition,
the Fund's service providers, including Schroders, or any of their
affiliates, may, from time to time, make these types of payment or payments
for other shareholder services or distribution, out of their own resources
and without additional cost to the Fund or its shareholders.

- 27 -

--------------------------------------------------------------------------------
TAXES

TAXES ON DIVIDENDS AND DISTRIBUTIONS. For federal income tax purposes,
distributions of investment income are taxed as ordinary income. Taxes on
distributions of capital gains are determined by how long the Fund owned the
investments that generated the gains, rather than how long you have owned
your shares. Distributions of net capital gains from the sale of investments
that the Fund has held for more than one year and that are properly
designated by the Fund as capital gain dividends will be taxable as long-term
capital gains. Distributions of gains from the sale of investments that the
Fund owned for one year or less and gains on the sale of bonds characterized
as a market discount sale will be taxable as ordinary income. For taxable
years beginning before January 1, 2011, distributions of investment income
designated by the Fund as derived from "qualified dividend income" will be
taxed in the hands of individuals at rates applicable to long-term capital
gains, provided holding period and other requirements are met at both the
shareholder and Fund level. The Fund does not expect a significant portion of
its distributions to be derived from qualified dividend income.

Distributions are taxable to shareholders even if they are paid from income
or gains earned by the Fund before a shareholder's investment (and thus were
included in the price the shareholder paid). Distributions are taxable
whether shareholders receive them in cash or reinvest them in additional
shares.

Distributions by the Fund to retirement plans that qualify for tax-exempt
treatment under federal income tax laws will not be taxable. Special tax
rules apply to investments through such plans. You should consult your tax
advisor to determine the suitability of the Fund as an investment through
such a plan and the tax treatment of distributions (including distributions
of amounts attributable to an investment in the Fund) from such a plan.

The Fund's investment in certain debt obligations may cause the Fund to
recognize taxable income in excess of the cash generated by such obligations.
Thus, the Fund could be required at times to liquidate other investments in
order to satisfy its distribution requirements.

In general, dividends (other than capital gain dividends) paid to a
shareholder that is not a "U.S. person" within the meaning of the Internal
Revenue Code (a "foreign person"), are subject to withholding of U.S. federal
income tax at a rate of 30% (or lower applicable treaty rate). However, under
the American Jobs Creation Act of 2004, effective for taxable years of the
Fund beginning after December 31, 2004 and before January 1, 2008, the Fund
generally will not be required to withhold any amounts with respect to
distributions of (i) U.S. source interest income that would not be subject to
U.S. federal income tax if earned directly by an individual foreign person,
and (ii) net short-term capital gains in excess of net long-term capital
losses, in each case to the extent such distributions are properly designated
by the Fund.

Long-term capital gain rates applicable to individuals have been temporarily
reduced -- in general, to 15% with lower rates applying to taxpayers in the
10% and 15% rate brackets -- for taxable years beginning before January 1,
2011.

TAXES WHEN YOU SELL, REDEEM OR EXCHANGE YOUR SHARES. Any gain resulting from
a redemption, sale or exchange (including an exchange for shares of another
fund) of your shares in the Fund will also generally be subject to federal
income tax at either short-term or long-term capital gain rates depending on
how long you have owned your shares.

FOREIGN TAXES. The Fund's investments in foreign securities may be subject to
foreign withholding or other taxes. In that case, the Fund's return on those
securities would be

- 28 -

decreased. Shareholders of Schroders funds that invest more than 50% of their
assets in foreign securities may be entitled to claim a credit or deduction
with respect to foreign taxes. Shareholders of other Schroders funds
generally will not be entitled to claim a credit or deduction with respect to
foreign taxes. In addition, investments in foreign securities may increase or
accelerate the Fund's recognition of ordinary income and may affect the
timing or amount of the Fund's distributions.

DERIVATIVES. The Fund's use of derivatives may affect the amount, timing, and
character of distributions to shareholders and, therefore, may increase the
amount of taxes payable by shareholders.

CONSULT YOUR TAX ADVISOR ABOUT OTHER POSSIBLE TAX CONSEQUENCES. This is a
summary of certain U.S. federal income tax consequences of investing in the
Fund. You should consult your tax advisor for more information on your own
tax situation, including possible other federal, state, local and foreign tax
consequences of investing in the Fund.

- 29 -

--------------------------------------------------------------------------------
DISCLOSURES OF FUND PORTFOLIO INFORMATION

Please see the Fund's SAI for a description of the Fund's policies and
procedures regarding the persons to whom the Fund or Schroders may disclose
the Fund's portfolio securities positions, and under which circumstances.

- 30 -

--------------------------------------------------------------------------------
USA PATRIOT ACT

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain,
verify, and record information that identifies each person who opens an
account. What this means to you: When you open an account directly with the
Fund, you will be asked your name, address, date of birth, and other
information that will allow you to be identified. You may also be asked for
other identifying documentation. If the Trust is unable to verify the
information shortly after your account is opened, your account may be closed
and your shares redeemed at their net asset values at the time of the
redemption.

- 31 -

INVESTMENT MANAGER
Schroder Investment Management North America Inc.
875 Third Avenue
New York, New York 10022

INVESTMENT SUB-ADVISER
Schroder Investment Management North America Limited
31 Gresham Street
London EC2V 7QA

ADMINISTRATOR
SEI Investments Global Funds Services
1 Freedom Valley Drive
Oaks, Pennsylvania 19456

CUSTODIAN
J.P. Morgan Chase Bank
270 Park Avenue
New York, New York 10017

DISTRIBUTOR
Schroder Fund Advisors Inc.
875 Third Avenue
New York, New York 10022

TRANSFER AND DIVIDEND DISBURSING AGENT
Boston Financial Data Services, Inc.
Two Heritage Drive
North Quincy, Massachusetts 02171

COUNSEL
Ropes & Gray LLP
One International Place
Boston, Massachusetts 02110

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1700
2001 Market Street
Philadelphia, Pennsylvania 19103

SCHRODER SERIES TRUST
Schroder Strategic Bond Fund

The Fund has an SAI which includes additional information about the Fund. The
SAI is incorporated by reference into this Prospectus, which means it is part
of this Prospectus for legal purposes. You may get free copies of the SAI,
request other information about the Fund, or make shareholder inquiries by
calling (800) 464-3108. From outside the United States, please call (617)
483-5000 and ask to speak with a representative of the Schroder Mutual Funds.
The Fund's SAI is also available on the following website:
WWW.SCHRODERFUNDS.COM.

You may review and copy information about the Fund, including its SAI, at the
Securities and Exchange Commission's public reference room in Washington, D.C.
You may call the SEC at 1-800-SEC-0330 for information about the operation of
the public reference room. You may also access reports and other information
about the Fund on the SEC Internet site at WWW.SEC.GOV. You may get copies of
this information, with payment of a duplication fee, by electronic request to
the following e-mail address: publicinfo@sec.gov or by writing the Public
Reference Section of the Commission, Washington, D.C. 20549-0102. You may need
to refer to the Trust's file number under the Investment Company Act, which is:
Schroder Series Trust: 811-7840.

SCHRODER SERIES TRUST
875 Third Avenue
New York, New York 10022
(800) 464-3108

File No. 811-7840 -- Schroder Series Trust

Filed pursuant to Rule 497(c) under the
Securities Act of 1933, as amended
Registration File No.: 33-65632

[GRAPHIC OMITTED]

PROSPECTUS

June 30, 2006

SCHRODER STRATEGIC BOND FUND

Advisor Shares

This Prospectus describes one mutual fund offered by Schroder Series Trust (the
"Trust").

SCHRODER STRATEGIC BOND FUND seeks a high level of total return. The Fund
invests in a portfolio of debt securities of issuers across a spectrum of
sectors and markets around the world.

NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF
THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.

SCHRODER SERIES TRUST

TABLE OF CONTENTS

PAGE
---
SUMMARY INFORMATION ..................................................... 1
Schroder Strategic Bond Fund .......................................... 1
FEES AND EXPENSES ....................................................... 5
PRINCIPAL RISKS OF INVESTING IN THE FUND ................................ 7
NON-PRINCIPAL INVESTMENT STRATEGIES AND TECHNIQUES ...................... 14
MANAGEMENT OF THE FUND .................................................. 16
HOW THE FUND'S SHARES ARE PRICED ........................................ 18
HOW TO BUY SHARES ....................................................... 19
HOW TO SELL SHARES ...................................................... 23
EXCHANGES ............................................................... 26
ADDITIONAL INFORMATION ABOUT ADVISOR SHARES; DISTRIBUTION PLAN .......... 27
DIVIDENDS AND DISTRIBUTIONS ............................................. 28
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES ....................... 29
PAYMENT OF FEES ......................................................... 30
TAXES ................................................................... 31
DISCLOSURES OF FUND PORTFOLIO INFORMATION ............................... 33
USA PATRIOT ACT ......................................................... 34

- i -

--------------------------------------------------------------------------------
SUMMARY INFORMATION

This summary identifies the investment objective, principal investment
strategies, and principal risks of Schroder Strategic Bond Fund (the
"Fund").

SCHRODER STRATEGIC BOND FUND

INVESTMENT OBJECTIVE. To seek a high level of total return.

PRINCIPAL INVESTMENT STRATEGIES. The Fund seeks its objective by investing
in a portfolio of debt securities of issuers across a spectrum of sectors
and markets around the world. The Fund normally invests substantially all,
and at least 80%, of its net assets in debt securities. The Fund may use
derivatives for purposes of complying with this test. The Fund may, from
time to time, invest more than 25% of its net assets in any one country or
group of countries. The Fund's sub-adviser will normally (though it will
not necessarily) hedge a substantial portion of the Fund's foreign currency
exposure back into the U.S. dollar, in order to limit the effects of
changes in foreign currencies on the value of the Fund's portfolio. The
Fund is a non-diversified investment company.

The Fund may invest in any type of debt securities, including, for example,
corporate debt securities, securities issued or guaranteed by sovereign
governments, their agencies, or instrumentalities (including securities
issued by the U.S. Government, the Government National Mortgage
Association, Federal Home Loan Banks, Fannie Mae, and Freddie Mac) and
mortgage-backed securities (including collateralized mortgage obligations).
The Fund may invest in convertible securities and warrants. The Fund may
invest in securities of any maturity, but will normally seek to maintain a
dollar-weighted average portfolio duration of 10 years or less. The Fund
may invest a substantial portion of its assets in mortgage-backed and
mortgage-related securities, including collateralized mortgage obligations,
and other asset-backed securities. Asset-backed securities in which the
Fund invests may have underlying assets that include motor vehicle
installment sales or installment loan contracts, leases of various types of
real and personal property and receivables from credit card agreements.

The Fund will invest principally in securities of "investment grade" at the
time of purchase, meaning either that a nationally recognized statistical
rating organization (for example, Moody's Investor Service, Inc., Standard
& Poor's Rating Service, or Fitch Investors Service, Inc.) has rated the
securities Baa3 or BBB- (or the equivalent) or better, or the Fund's
sub-adviser has determined the securities to be of comparable quality. Up
to 40% of the Fund's total assets may be invested in securities rated below
"investment grade", sometimes referred to as "junk bonds" (or, if unrated,
determined by the Fund's sub-adviser to be of comparable quality).

In managing the Fund, the Fund's sub-adviser will allocate the Fund's
assets among issuers, types of securities, industries, interest rates, and
geographical regions, including

- 1 -

emerging markets. An investment team located in London will make top-down
investment allocation decisions. Subject to the oversight of this
investment team, other investment teams located in various geographical
regions or specializing in particular types of investments will implement
those asset allocation decisions by selecting the specific securities in
which the Fund will invest. In this way, the Fund's sub-adviser attempts to
construct a portfolio representing many of the firm's "best ideas." The
Fund's sub-adviser will change asset allocations and the Fund's portfolio
securities in response to changes in its assessment of market, economic,
political, and other factors. The sub-adviser may sell securities when it
believes that they no longer offer attractive potential future returns
compared to other investment opportunities or that they present undesirable
risks, or in order to limit losses on securities that have declined in
value. The Fund's sub-adviser may trade the Fund's portfolio securities
more frequently than many other mutual funds. Frequent trading of the
Fund's portfolio securities will result in relatively high transaction
costs and may result in taxable capital gains.

PRINCIPAL RISKS.

-- It is possible to lose money on an investment in the Fund.

-- CREDIT RISK. The ability, or perceived ability, of the issuer of a debt
security to make timely payments of interest and principal on the
security will affect the value of the security.

-- EXTENSION RISK. During periods of rising interest rates, the average
life of certain types of securities may be extended because of slower
than expected principal payments. This may lock in a below-market
interest rate, increase the security's duration, and reduce the value of
the security.

- 2 -

-- LIQUIDITY RISK. The Fund may find it difficult to sell or to close out
certain investments at favorable prices or times. Illiquid securities may
be highly volatile and difficult to value.

-- DERIVATIVES RISK. Derivative transactions typically involve leverage and
may be highly volatile. It is possible that a derivative transaction will
result in a loss greater than the principal amount invested, and the Fund
may not be able to close-out a derivative transaction at a favorable time
or price.

- 3 -

-- FREQUENT TRADING/PORTFOLIO TURNOVER RISK. Frequent trading of the Fund's
portfolio securities will result in relatively high transaction costs and
may result in taxable capital gains. The Fund's sub-adviser currently
expects that the portfolio turnover rate for the Fund's current fiscal
year will be greater than 400%.

Performance Information. The Fund recently commenced operations and does not
yet have historical investment performance. For performance information with
respect to other investment accounts managed by the Fund's adviser, see the
Statement of Additional Information ("SAI").
------------
Changes in investment objective and policies. The policy described above
requiring the Fund to invest at least 80% of its net assets in certain
investments may be changed by the Trustees upon at least 60 days' prior written
notice to shareholders. Except for any policy described in this prospectus or
in the SAI as fundamental, the Fund's investment objective and policies may be
changed by the Trustees without a vote of the shareholders.

- 4 -

--------------------------------------------------------------------------------
FEES AND EXPENSES

THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
ADVISOR SHARES OF THE FUND.

SHAREHOLDER FEES (paid directly from your investment):

MAXIMUM SALES LOAD IMPOSED ON PURCHASES None
MAXIMUM DEFERRED SALES LOAD None
MAXIMUM SALES LOAD IMPOSED ON REINVESTED DIVIDENDS None
REDEMPTION FEE 2.00%(1)
EXCHANGE FEE None

(1) Shares of the Fund held for two months or less are subject to a
redemption fee of 2.00%.

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets):

SCHRODER STRATEGIC BOND FUND
----------------------------

MANAGEMENT FEES (1) 0.75%
-----
DISTRIBUTION (12B-1) FEES 0.25%
-----
OTHER EXPENSES (1)(2) 1.21%
-----
TOTAL ANNUAL FUND OPERATING EXPENSES 2.21%
-----
LESS: FEE WAIVER AND EXPENSE LIMITATION (3) (0.81%)
-----
NET EXPENSES (3) 1.40%
-----

(2) "Other Expenses" for the Fund are based on estimated amounts for the
Fund's current fiscal year.

(3) The "Net Expenses" shown for the Fund reflect the effect of
contractually imposed fee waivers and/or expense limitations, in effect
until June 30, 2007, on the Total Annual Fund Operating Expenses of the
Fund. In order to limit the expenses of the Fund's Advisor Shares, the
Fund's adviser has contractually agreed to reduce its compensation (and,
if necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses, which may include typically non-recurring expenses
such as, for example, organizational expenses, litigation expenses, and
shareholder meeting expenses) until June 30, 2007 to the extent that the
Total Annual Fund Operating Expenses of the Fund allocable to its Advisor
Shares exceed the annual rate of 1.40% (based on the average daily net
assets attributable to the Fund's Advisor Shares). The fee waiver and/or
expense limitation for the Fund may only be terminated during its term by
the Board of Trustees.

- 5 -

--------------------------------------------------------------------------------
EXAMPLE

This Example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in Advisor Shares of the Fund
for the time periods indicated and then redeem all of your Advisor Shares
at the end of those periods. The Example also assumes that your investment
earns a 5% return each year and that the Fund's operating expenses for each
year are the same as the Fund's Total Annual Fund Operating Expenses shown
above (except that, in the first year, the operating expenses are the same
as the Fund's Net Expenses shown above). Your actual costs may be higher or
lower. Based on these assumptions, your costs would be:

1 YEAR 3 YEARS
------ -------

SCHRODER STRATEGIC BOND FUND $143 $613
---- ----

Because of Rule 12b-1 fees paid by the Fund, long-term shareholders may pay
more than the economic equivalent of the maximum front-end sales load
permitted under the applicable broker-dealer sales rules.

- 6 -

--------------------------------------------------------------------------------
PRINCIPAL RISKS OF INVESTING IN THE FUND

The Fund may not achieve its objective. The following provides more detail
about certain of the Fund's principal risks and the circumstances which
could adversely affect the value of the Fund's shares or its investment
return.

-- INTEREST RATE RISK. The values of bonds and other debt instruments
usually rise and fall in response to changes in interest rates. Declining
interest rates generally increase the values of existing debt
instruments, and rising interest rates generally reduce the value of
existing debt instruments. Interest rate risk is generally greater for
investments with longer durations or maturities. Some investments give
the issuer the option to call or redeem an investment before its maturity
date. If an issuer calls or redeems an investment during a time of
declining interest rates, the Fund might have to reinvest the proceeds in
an investment offering a lower yield, and therefore might not benefit
from any increase in value as a result of declining interest rates.

-- CREDIT RISK. The ability, or perceived ability, of the issuer of a debt
security to make timely payments of interest and principal on the
security will affect the value of the security. It is possible that the
ability of an issuer to meet its obligations will decline substantially
during the period when the Fund owns securities of that issuer, or that
the issuer will default on its obligations. An actual or perceived
deterioration in the ability of an issuer to meet its obligations will
likely have an adverse effect on the value of the issuer's securities.

Up to 40% of the Fund's total assets may be invested in securities rated
below "investment grade", sometimes referred to as "junk bonds" (or, if
unrated, determined by the Fund's adviser to be of comparable quality).
If a security has been rated by more than one nationally recognized
statistical rating organization the Fund's adviser will consider the
highest rating for the purposes of determining whether the security is of
"investment grade." The Fund will not necessarily dispose of a security
held by it if its rating falls below investment grade, although the
Fund's adviser will consider whether the security continues to be an
appropriate investment for the Fund. The Fund considers whether a
security is of "investment grade" only at the time of purchase.

Credit risk is generally greater for investments issued at less than
their face values and required to make interest payments only at maturity
rather than at intervals during the life of the investment. Credit rating
agencies base their ratings largely on the issuer's historical financial
condition and the rating agencies' investment analysis at the time of
rating. The rating assigned to any particular investment does not
necessarily reflect the issuer's current financial condition, and does
not reflect an assessment of an investment's volatility or liquidity.
Although investment grade investments generally have lower credit risk
than investments rated below investment grade, they may share some of the
risks of lower-rated investments, including the possibility that the
issuers may be unable to make timely payments of interest and principal
and thus default.

- 7 -

Service, Inc., Standard & Poor's Rating Service, or Fitch Investors
Service, Inc.) has rated the securities CC- (or the equivalent) or
better, or the Fund's adviser has determined the securities to be of
comparable quality. The lower ratings of certain securities held by the
Fund reflect a greater possibility that adverse changes in the financial
condition of the issuer or in general economic conditions, or both, or an
unanticipated rise in interest rates, may impair the ability of the
issuer to make payments of interest and principal. The inability (or
perceived inability) of issuers to make timely payment of interest and
principal would likely make the values of securities held by the Fund
more volatile and could limit the Fund's ability to sell its securities
at prices approximating the values the Fund has placed on such
securities. In the absence of a liquid trading market for securities held
by them, the Fund at times may be unable to establish the fair value of
such securities. To the extent the Fund invests in securities in the
lower rating categories, the achievement of the Fund's goals is more
dependent on the Fund adviser's investment analysis than would be the
case if the Fund was investing in securities in the higher rating
categories.

-- EXTENSION RISK. During periods of rising interest rates, the average
life of certain types of securities may be extended because of slower
than expected principal payments. This may lock in a below-market
interest rate, increase the security's duration, and reduce the value of
the security.

-- INFLATION/DEFLATION RISK. Inflation risk is the risk that the Fund's
assets or income from the Fund's investments may be worth less in the
future as inflation decreases the value of money. As inflation increases,
the real value of the Fund's portfolio could decline. Deflation risk is
the risk that prices throughout the economy may decline over time -- the
opposite of inflation. Deflation may have an adverse effect on the
creditworthiness of issuers and may make issuer default more likely,
which may result in a decline in the value of the Fund's portfolio.

-- MORTGAGE AND ASSET-BACKED SECURITIES RISK. Mortgage-backed securities,
including collateralized mortgage obligations and certain stripped
mortgage-backed securities, represent a participation in, or are secured
by, mortgage loans. Asset-backed securities are structured like
mortgage-backed securities, but instead of mortgage loans or interests in
mortgage loans, the underlying assets may include such items as motor
vehicle installment sales or installment loan contracts, leases of
various types of real and personal property and receivables from credit
card agreements. The ability of an issuer of asset-backed securities to
enforce its security interest in the underlying assets may be limited.
Traditional debt investments typically pay a fixed rate of interest until
maturity, when the entire principal amount is due. By contrast, payments
on mortgage-backed and many asset-backed investments typically include
both interest and partial payment of principal. Principal may also be
prepaid voluntarily, or as a result of refinancing or foreclosure. The
Fund may have to invest the proceeds from prepaid investments in other
investments with less attractive terms and yields. As a result, these
securities may have less potential for capital appreciation during
periods of declining interest rates than other securities of comparable
maturities, although they may have a similar risk of decline in market
value during periods of rising interest rates. Because the prepayment
rate generally declines as interest rates rise, an increase in interest
rates will likely increase the duration, and thus the volatility, of
mortgage-backed and asset-backed securities. Duration is a measure of the
expected life of a fixed income security that is used to determine the
sensitivity of the security's price to changes in interest rates. Unlike
the maturity of a fixed income security, which measures only the time
until final payment is due, duration takes into account the time

- 8 -

until all payments of interest and principal on a security are expected
to be made, including how these payments are affected by prepayments and
by changes in interest rates. Some mortgage-backed and asset-backed
investments receive only the interest portion ("IOs") or the principal
portion ("POs") of payments on the underlying assets. The yields and
values of these investments are extremely sensitive to changes in
interest rates and in the rate of principal payments on the underlying
assets. IOs tend to decrease in value if interest rates decline and rates
of repayment (including prepayment) on the underlying mortgages or assets
increase; it is possible that the Fund may lose the entire amount of its
investment in an IO due to a decrease in interest rates. Conversely, POs
tend to decrease in value if interest rates rise and rates of repayment
decrease. Moreover, the market for IOs and POs may be volatile and
limited, which may make them difficult for the Fund to buy or sell. The
Fund may gain investment exposure to mortgage-backed and asset-backed
investments by entering into agreements with financial institutions to
buy the investments at a fixed price at a future date. The Fund may or
may not take delivery of the investments at the termination date of such
an agreement, but will nonetheless be exposed to changes in value of the
underlying investments during the term of the agreement.

-- LIQUIDITY RISK. Liquidity risk exists when particular investments are
difficult to purchase or sell. The Fund's investments in illiquid
securities may reduce the returns of the Fund because it may be unable to
sell the illiquid securities at anadvantageous time or price. Investments
in foreign securities, derivatives, or securities with substantial market
and/or credit risk tend to have the greatest exposure to liquidity risk.
Illiquid securities may be highly volatile and difficult to value.

-- DERIVATIVES RISK. Derivatives are financial contracts whose value
depends on, or derives from, the value of an underlying asset, reference
rate, or index. The Fund's use of derivative instruments involves risks
different from, and possibly greater than, the risks associated with
investing directly in securities and other traditional investments.
Derivatives are subject to a number of risks described elsewhere in this
section, such as liquidity risk, interest rate risk, and credit risk, and
the risk that a derivative transaction may not have the effect the Fund's
sub-adviser anticipated. Derivatives also involve the risk of mispricing
or improper valuation and the risk that changes in the value of the
derivative may not correlate perfectly with the underlying asset, rate,
or index. Derivative transactions typically involve leverage and may be
highly volatile. Use of derivatives other than for hedging purposes may
be considered speculative, and when the Fund invests in a derivative
instrument it could lose more than the principal amount invested. Also,
suitable derivative transactions may not be available in all
circumstances and there can be no assurance that the Fund will engage in
these transactions to reduce exposure to other risks when that would be
beneficial. Many derivative transactions are entered into "over the
counter" (not on an exchange or contract market); as a result, the value
of such a derivative transaction will depend on the ability and
willingness of the Fund's counterparty to perform its obligations under
the transaction. The Fund may be required to segregate certain of its
assets on the books of its custodian in respect of derivatives
transactions entered into by the Fund. See the Fund's SAI for more
information.

- 9 -

to increase as interest rates decline. In addition, because of the
conversion feature, the market value of convertible securities tends to
vary with fluctuations in the market value of the underlying common
stocks and, therefore, also will react to variations in the general
market for equity securities.

-- FOREIGN INVESTMENT RISK. Investments in foreign securities entail
certain risks. There may be a possibility of nationalization or
expropriation of assets, confiscatory taxation, political or financial
instability, and diplomatic developments that could affect the value of
the Fund's investments in certain foreign countries. In addition, there
may be less information publicly available about a foreign issuer than
about a U.S. issuer, and foreign issuers are not generally subject to
accounting, auditing, and financial reporting standards and practices
comparable to those in the United States. The securities of some foreign
issuers are less liquid and at times more volatile than securities of
comparable U.S. issuers. Foreign brokerage commissions and other fees are
also generally higher than in the United States. Foreign settlement
procedures and trade regulations may involve certain risks (such as delay
in payment or delivery of securities or in the recovery of the Fund's
assets held abroad) and expenses not present in the settlement of
domestic investments.

In addition, legal remedies available to investors in certain foreign
countries may be more limited than those available to investors in the
United States or in other foreign countries. The willingness and ability
of foreign governmental entities to pay principal and interest on
government securities depends on various economic factors, including the
issuer's balance of payments, overall debt level, and cash-flow
considerations related to the availability of tax or other revenues to
satisfy the issuer's obligations. If a foreign governmental entity
defaults on its obligations on the securities, the Fund may have limited
recourse available to it. The laws of some foreign countries may limit
the Fund's ability to invest in securities of certain issuers located in
those countries.

Special tax considerations apply to the Fund's investments in foreign
securities. In determining whether to invest the Fund's assets in debt
securities of foreign issuers, the Fund's sub-adviser considers the
likely impact of foreign taxes on the net yield available to the Fund and
its shareholders. Income and/or gains received by the Fund from sources
within foreign countries may be reduced by withholding and other taxes
imposed by such countries. Tax conventions between certain countries and
the United States may reduce or eliminate such taxes. Any such taxes paid
by the Fund will reduce its income available for distribution to
shareholders. In certain circumstances, the Fund may be able to pass
through to shareholders credits for foreign taxes paid. Certain of these
risks may also apply to some extent to investments in U.S. companies that
are traded in foreign markets, or investments in U.S. companies that have
significant foreign operations.

-- FOREIGN CURRENCIES RISK. Since foreign securities normally are
denominated and traded in foreign currencies, the value of the Fund's
assets may be affected favorably

- 10 -

or unfavorably by currency exchange rates, currency exchange control
regulations, foreign withholding taxes, and restrictions or prohibitions
on the repatriation of foreign currencies. The Fund may, but is not
required to, buy or sell foreign currencies and options and futures
contracts on foreign currencies for hedging purposes in connection with
its foreign investments.

If the Fund purchases securities denominated in foreign currencies, a
change in the value of any such currency against the U.S. dollar will
result in a change in the U.S. dollar value of the Fund's assets and the
Fund's income available for distribution. Officials in foreign countries
may from time to time take actions in respect of their currencies which
could significantly affect the value of the Fund's assets denominated in
those currencies or the liquidity of such investments. For example, a
foreign government may unilaterally devalue its currency against other
currencies, which would typically have the effect of reducing the U.S.
dollar value of investments denominated in that currency. A foreign
government may also limit the convertibility or repatriation of its
currency or assets denominated in its currency, which would adversely
affect the U.S. dollar value and liquidity of investments denominated in
that currency. In addition, although at times most of the Fund's income
may be received or realized in these currencies, the Fund will be
required to compute and distribute its income in U.S. dollars. As a
result, if the exchange rate for any such currency declines after the
Fund's income has been earned and translated into U.S. dollars but before
payment to shareholders, the Fund could be required to liquidate
portfolio securities to make such distributions. Similarly, if the Fund
incurs an expense in U.S. dollars and the exchange rate declines before
the expense is paid, the Fund would have to convert a greater amount of
U.S. dollars to pay for the expense at that time than it would have had
to convert at the time the Fund incurred the expense. The Fund may, but
is not required to, buy or sell foreign currencies and options and
futures contracts on foreign currencies for hedging purposes in
connection with its foreign investments.

-- EMERGING MARKET SECURITIES RISK. Investing in emerging market securities
poses risks different from, and/or greater than, risks of investing in
domestic securities or in the securities of foreign, developed countries.
These risks include: smaller market capitalization of securities markets,
which may suffer periods of relative illiquidity; significant price
volatility; restrictions on foreign investment; and possible repatriation
of investment income and capital. In addition, foreign investors may be
required to register the proceeds of sales, and future economic or
political crises could lead to price controls, forced mergers,
expropriation or confiscatory taxation, seizure, nationalization or the
creation of government monopolies. The currencies of emerging market
countries may experience significant declines against the U.S. dollar,
and devaluation may occur subsequent to investments in these currencies
by the Fund. Inflation and rapid fluctuations in inflation rates have
had, and may continue to have, negative effects on the economies and
securities markets of certain emerging market countries. Although many of
the emerging market securities in which the Fund may invest are traded on
securities exchanges, they may trade in limited volume, and the exchanges
may not provide all of the conveniences or protections provided by
securities exchanges in more developed markets.

- 11 -

information about issuers; and less developed legal systems. In addition,
emerging securities markets may have different clearance and settlement
procedures, which may be unable to keep pace with the volume of
securities transactions or otherwise make it difficult to engage in such
transactions. Settlement problems may cause the Fund to miss attractive
investment opportunities, hold a portion of its assets in cash pending
investment, or be delayed in disposing of a portfolio security. Such a
delay could result in possible liability to a purchaser of the security.

-- GEOGRAPHIC FOCUS RISK. To the extent that the Fund invests a substantial
amount of its assets in one country, its performance may at times be
worse than the performance of other mutual funds that invest more
broadly.

-- MANAGEMENT RISK. Because the Fund is actively managed, the Fund's
investment return depends on the ability of its sub-adviser to manage its
portfolio successfully. The Fund's sub-adviser and its investment team
will apply investment techniques and risk analyses in making investment
decisions for the Fund, but there can be no guarantee that these will
produce the desired results.

-- FREQUENT TRADING / PORTFOLIO TURNOVER RISK. The length of time the Fund
has held a particular security is not generally a consideration in
investment decisions. The investment policies of the Fund may lead to
frequent changes in the Fund's investments, particularly in periods of
volatile market movements, in order to take advantage of what the Fund's
sub-adviser believes to be temporary disparities in normal yield
relationships between securities. A change in the securities held by the
Fund is known as "portfolio turnover." Portfolio turnover generally
involves some expense to the Fund, including bid-asked spreads, dealer
mark-ups and other transaction costs on the sale of securities and
reinvestments in other securities, and may result in the realization of
taxable capital gains (including short-term gains, which are generally
taxed to shareholders at ordinary income rates). The trading costs and
tax effects associated with portfolio turnover may adversely affect the
Fund's performance. During periods when the Fund experiences high
portfolio turnover rates, these effects are likely to be more pronounced.
The Fund's adviser currently expects that the portfolio turnover rate for
the current fiscal year will be greater than 400% for the Fund. Consult
your tax advisor regarding the Fund's portfolio turnover rate on your
investments.

-- U.S. GOVERNMENT SECURITIES RISK. U.S. Government securities include a
variety of securities that differ in their interest rates, maturities,
and dates of issue. While securities issued or guaranteed by some
agencies or instrumentalities of the U.S. Government (such as the
Government National Mortgage Association) are supported by the full faith
and credit of the United States, securities issued or guaranteed by
certain other agencies or instrumentalities of the U.S. Government (such
as Federal Home Loan Banks) are supported by the right of the issuer to
borrow from the U.S. Government, and securities issued or guaranteed by
certain other agencies and instrumentalities of the U.S. Government (such
as Fannie Mae and Freddie Mac) are supported only by the credit of the
issuer itself. Investments in these securities are also subject to
interest rate risk (as described above under "Interest Rate Risk"),
prepayment risk (as described above under "Mortgage and Asset-Backed
Securities Risk"), extension risk (as described above under "Extension
Risk"), and the risk that the value of the securities will fluctuate in
response to political, market, or economic developments.

- 12 -

-- NON-DIVERSIFICATION RISK. The Fund is a non-diversified investment
company. It therefore may invest a greater percentage of its assets in a
particular issuer or group of issuers than a diversified fund. To the
extent the Fund invests a significant portion of its assets in the
securities of a particular issuer, it will be subject to an increased
risk of loss if the market value of the issuer's securities declines.

- 13 -

--------------------------------------------------------------------------------
NON-PRINCIPAL INVESTMENT STRATEGIES AND TECHNIQUES

In addition to the principal investment strategies described in the
Principal Investment Strategies section above, the Fund may at times, but
is not required to, use the strategies and techniques described below,
which involve certain special risks. This Prospectus does not attempt to
disclose all of the various investment techniques and types of securities
that the Fund's sub-adviser might use in managing the Fund. As in any
mutual fund, investors must rely on the professional investment judgment
and skill of the Fund's adviser.

-- SHORT SALES. The Fund may sell a security short when the Fund's
sub-adviser anticipates that the price of the security will decline. The
Fund may make a profit or incur a loss depending on whether the market
price of the security decreases or increases between the date of the
short sale and the date on which the Fund "closes" the short position. A
short position will result in a loss if the market price of the security
in question increases between the date when the Fund enters into the
short position and the date when the Fund closes the short position. Such
a loss could theoretically be unlimited in a case where such Fund is
unable, for whatever reason, to close out its short position. In
addition, short positions may result in a loss if a portfolio strategy of
which the short position is a part is otherwise unsuccessful.

-- WHEN-ISSUED, DELAYED DELIVERY, AND FORWARD COMMITMENT TRANSACTIONS. The
Fund may purchase securities on a when-issued, delayed delivery, or
forward commitment basis. These transactions involve a commitment by the
Fund to purchase a security for a predetermined price or yield, with
payments and delivery taking place more than seven days in the future, or
after a period longer than the customary settlement period for that type
of security. These transactions may increase the overall investment
exposure for the Fund and involve a risk of loss if the value of the
securities declines prior to the settlement date.

-- SECURITIES LOANS AND REPURCHASE AGREEMENTS. The Fund may lend portfolio
securities to broker-dealers, and may enter into repurchase agreements.
These transactions must be fully collateralized at all times, but involve
some risk to the Fund if the other party should default on its obligation
and the Fund is delayed or prevented from recovering the collateral. The
Fund may enter into securities loans and repurchase agreements as a
non-principal investment strategy, as a way to recognize additional
current income on securities that it owns.

-- TEMPORARY DEFENSIVE STRATEGIES. At times, the Fund's sub-adviser may
judge that conditions in the securities markets make pursuing the Fund's
investment strategy inconsistent with the best interests of its
shareholders. At such times, the Fund's sub-adviser may, but is not
required to, take temporary "defensive" positions that are inconsistent
with the Fund's principal investment strategies in attempting to respond
to adverse market, economic, political, or other conditions. In
implementing these defensive strategies, the Fund would invest in
investment grade fixed income securities, cash or money market
instruments to any extent the Fund's sub-adviser considers consistent
with such defensive strategies. It is impossible to predict when, or for
how long, the Fund would use these alternate strategies. One risk of
taking such temporary defensive positions is that the Fund may not
achieve its investment objective.

-- PRICING. At times market conditions might make it hard to value some
investments. If the Fund has valued securities it holds too high, you may
end up paying too much for

- 14 -

the Fund's shares when you buy into the Fund. If the Fund underestimates
the price of its portfolio securities, you may not receive the full
market value for your Fund shares when you sell. To the extent the Fund
relies on a pricing service to value some or all of its portfolio
securities, it is possible that the pricing information provided by the
service will not reflect the actual price the Fund would receive upon a
sale of the security.

-- OTHER INVESTMENTS. The Fund may also invest in other types of securities
and utilize a variety of investment techniques and strategies that are
not described in this Prospectus. These securities and techniques may
subject the Fund to additional risks. Please see the SAI for additional
information about the securities and investment techniques described in
this Prospectus and about additional techniques and strategies that may
be used by the Fund.

-- SECURITIES IN DEFAULT. The Fund may invest in securities that are in
default. Securities that are in default are subject generally to the
risks described above under "Principal Risks of Investing in the Fund --
High-Yield/Junk Bonds Risk", and which offer little or no prospect for
the payment of the full amount of unpaid principal and interest, although
normally the Fund will not invest in securities unless a nationally
recognized statistical rating organization (for example, Moody's Investor
Service, Inc., Standard & Poor's Rating Service, or Fitch Investors
Service, Inc.) has rated the securities CC-- (or the equivalent) or
better, or the Fund's adviser has determined the securities to be of
comparable quality.

-- PERCENTAGE INVESTMENT LIMITATIONS. Unless otherwise noted, all
percentage limitations on Fund investments will apply at the time of
investment, including the requirement that the Fund normally invest at
least 80% of its net assets in debt securities. An investment by the Fund
would not be considered to violate any percentage limitation unless an
excess or deficiency were to occur or exist immediately after and as a
result of an investment. References in the discussion of the Fund's
investment policies above to 80% of the Fund's net assets refer to that
percentage of the aggregate of the Fund's net assets and the amount, if
any, of borrowings by the Fund for investment purposes.

-- PRIVATE PLACEMENTS AND RESTRICTED SECURITIES. The Fund may invest in
securities that are purchased in private placements. Because there may be
relatively few potential purchasers for such investments, especially
under adverse market or economic conditions or in the event of adverse
changes in the financial condition of the issuer, the Fund could find it
more difficult to sell such securities when the Fund's adviser believes
it advisable to do so or may be able to sell such securities only at
prices lower than if such securities were more widely held. At times, it
may also be more difficult to determine the fair value of such securities
for purposes of computing the Fund's net asset value. The Fund's sale of
such investments may also be restricted under securities laws. In the
event that the Trustees, or persons designated by the Trustees, determine
that a security is "readily marketable" pursuant to these procedures, and
the Fund is not able to sell such security at the price that such persons
anticipate, the Fund's net asset value will decrease.

- 15 -

--------------------------------------------------------------------------------
MANAGEMENT OF THE FUND

The Trust is governed by a Board of Trustees. The Board of Trustees of the
Trust has retained Schroder Investment Management North America Inc.
("Schroders") to serve as the Fund's adviser and to manage the investments
of the Fund. Subject to the control of the Board of Trustees, Schroders
also manages the Fund's other affairs and business.

Schroder Investment Management North America Limited ("SIMNA Ltd."), an
affiliate of Schroders, serves as sub-adviser responsible for portfolio
management of the Fund.

Schroders (itself and its predecessors) has been an investment manager
since 1962, and serves as investment adviser to the Fund and as investment
adviser to other mutual funds and a broad range of institutional investors.
Schroders plc, Schroders' ultimate parent, is a global asset management
company with approximately $211 billion under management as of December 31,
2005. Schroders and its affiliates have clients that are major financial
institutions including banks and insurance companies, public and private
pension funds, endowments and foundations, high net worth individuals,
financial intermediaries and retail investors. Schroders plc has one of the
largest networks of offices of any dedicated asset management company and
over 300 portfolio managers and analysts covering the world's investment
markets.

-- MANAGEMENT FEES. The Fund expects to pay management fees for investment
management services to Schroders at the annual rate (based on the Fund's
average daily net assets) of 0.75%. As compensation for SIMNA Ltd.'s
services as sub-adviser, Schroders pays to SIMNA Ltd. fifty percent of
the investment advisory fees Schroders receives from the Fund.

-- EXPENSE LIMITATIONS AND WAIVERS. In order to limit the expenses of the
Fund, Schroders has contractually agreed to reduce its compensation (and,
if necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses, which may include typically non-recurring
expenses such as, for example, organizational expenses, litigation
expenses, and shareholder meeting expenses) until June 30, 2007 to the
extent that the Total Annual Fund Operating Expenses of the Fund
allocable to its Advisor Shares exceed the annual rate of 1.40% (based on
the average daily net assets attributable to the Fund's Advisor Shares).

- 16 -

-- PORTFOLIO MANAGEMENT. The following portfolio managers at Schroders and
SIMNA Ltd. have primary responsibility for making investment decisions
for the Fund. Each portfolio manager's recent professional experience is
also shown. The Fund's SAI provides additional information about each
portfolio manager's compensation, other accounts managed by the portfolio
managers, and each portfolio manager's ownership of securities in the
Fund.

RECENT PROFESSIONAL
FUND NAME TITLE SINCE EXPERIENCE
---- ---- ----- ----- ----------

Schroder Strategic Bond Robert Michele, Global Head of June 30, 2006 Mr. Michele is Global
Fund CFA Fixed Income Head of Fixed Income of
Schroders. He has been
an employee of Schroders
since 1998.
Schroder Strategic Bond Louise Davies Portfolio Manager June 30, 2006 Ms. Davies is a Portfolio
Fund Manager of Schroders.
She has been an
employee of Schroders
since 1999.

- 17 -

--------------------------------------------------------------------------------
HOW THE FUND'S SHARES ARE PRICED

The Fund calculates the net asset value of its Advisor Shares by dividing
the total value of its assets attributable to its Advisor Shares, less its
liabilities attributable to those shares, by the number of Advisor Shares
outstanding. The Fund values its Advisor Shares as of the close of trading
on the New York Stock Exchange (the "Exchange") (normally 4:00 p.m.,
Eastern Time) each day the Exchange is open. The Trust expects that days,
other than weekend days, when the Exchange will not be open are New Year's
Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Securities for which market quotations are readily available are valued at
prices which, in the opinion of Schroders, most nearly represent the market
values of such securities. Securities for which market values are not
readily available, or for which the Fund's adviser believes the market
value is unreliable (including, for example, certain foreign securities,
thinly traded securities, initial public offerings, or when there is a
particular event that may affect the value of a security), are valued by
Schroders at their fair values pursuant to guidelines established by the
Board of Trustees, and under the ultimate supervision of the Board of
Trustees, generally by reference to other securities or indexes. For
instance, a pricing service may recommend a fair value based generally on
prices of comparable securities. Unlisted securities for which market
quotations are readily available generally are valued at the most recently
reported sales prices on any day or, in the absence of a reported sale
price, at mid-market prices. Options and futures contracts traded on a
securities exchange or board of trade generally are valued at the last
reported sales price or, in the absence of a sale, at the closing
mid-market price on the principal exchange where they are traded. Options
and futures not traded on a securities exchange or board of trade for which
over-the-counter market quotations are readily available are valued at the
most recently reported mid-market price. If such prices are not available,
unlisted securities and derivatives are valued by Schroders at their fair
values based on quotations from dealers, and if such quotations are not
available, based on factors in the market where such securities trade, such
as security and bond prices, interest rates, and currency exchange rates.
The Fund may invest in foreign securities that are primarily listed on
foreign exchanges that trade on weekends and other days when the Fund does
not price its shares. As a result, the value of the Fund's portfolio
securities may change on days when the price of the Fund's shares is not
calculated. The price of the Fund's shares will reflect any such changes
when the price of the Fund's shares is next calculated, which is the next
day the Exchange is open. The Fund may use fair value pricing more
frequently for securities primarily traded in non-U.S. markets because,
among other things, most foreign markets close well before the Fund values
its securities. The earlier close of these foreign markets gives rise to
the possibility that significant events, including broad market moves, may
have occurred in the interim. The Fund's investments may be priced based on
fair values provided by a third party fair valuation vendor, based on
certain factors and methodologies applied by such vendor, in the event that
there is movement in the U.S. market that exceeds a specific threshold
established by the Schroders' Fair Value Committee in consultation with the
Board of Trustees, pursuant to guidelines established by the Board of
Trustees, and under the ultimate supervision of the Board of Trustees.
Short-term investments that will mature within 60 days are valued by
Schroders using amortized cost pursuant to procedures adopted by the Board
of Trustees. The net asset value of the Fund's Investor Shares may differ
from that of its Advisor Shares due to differences in the expenses of
Investor Shares and Advisor Shares.

- 18 -

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HOW TO BUY SHARES

You may purchase Advisor Shares of the Fund directly from the Trust
(through Schroder Fund Advisors Inc., the distributor of the Trust's
shares) or through the Fund's transfer agent, Boston Financial Data
Services, Inc. ("BFDS"), or through a service organization such as a bank,
trust company, broker-dealer, or other financial organization (a "Service
Organization") having an arrangement with Schroder Fund Advisors Inc. If
you do not have a Service Organization, Schroder Fund Advisors Inc. can
provide you with a list of available firms. Your Service Organization is
responsible for forwarding all of the necessary documentation to the Trust,
and may charge you separately for its services.

The purchase, redemption and exchange policies and fees charged by such
Service Organizations may be different than those of the Fund. For
instance, banks, brokers, retirement plans and financial advisers may
charge transaction fees in addition to any fees charged by the Fund, and
may set different minimums or limitations on buying, exchanging, or
redeeming Advisor Shares. Please consult a representative of your Service
Organization for further information.

If the Advisor Shares you purchase will be held in your own name (rather
than the name of your Service Organization), your payment for the shares
must be accompanied by a completed Account Application and payment by check
or wire as described below. Account Applications for Advisor Shares may be
obtained from BFDS at the address provided below under "Purchases by
Check," from your Service Organization, or by calling the Schroder Mutual
Funds at (800) 464-3108 (from outside the United States, please call (617)
483-5000 and ask to speak with a Schroder Mutual Funds representative).
Acceptance of your order will be delayed pending receipt of additional
documentation, such as copies of corporate resolutions and instruments of
authority, from corporations, administrators, executors, personal
representatives, directors, or custodians.

The Fund sells its Advisor Shares at their net asset value next determined
after the Fund, its transfer agent, BFDS, or another authorized broker or
financial institution (as described below) receives your request in good
order (meaning that the request meets the requirements set out below and in
the Account Application, and otherwise meets the requirements implemented
from time to time by the Fund's transfer agent or the Fund). In order for
you to receive the Fund's next determined net asset value, the Fund, BFDS,
the Service Organization, or the authorized broker or financial institution
must receive your order before the close of trading on the Exchange
(normally 4:00 p.m., Eastern Time). The Trust reserves the right to reject
any order to purchase Advisor Shares of the Fund. The Trust generally
expects to inform any persons that their purchase has been rejected within
24 hours.

Certain brokers or other financial institutions may accept purchase orders
for Advisor Shares on behalf of the Fund. Such brokers or financial
institutions may designate other intermediaries to accept purchase orders
on behalf of the Fund. For purposes of pricing, the Fund will be deemed to
have received a purchase order when an authorized broker or financial
institution or, if applicable, a broker or financial institution's
authorized designee, receives the order. Agreements between such brokers or
financial institutions and Schroder Fund Advisors Inc., the Trust's
distributor, provide that these orders will be priced at the Fund's net
asset value next determined after they are received by the broker or
financial institution or authorized designee. Orders received in good order
prior to the close of the Exchange on any day the Exchange is open for
trading will receive the net asset value next determined as of the end of
that day. Orders received after that time will receive the next day's net
asset value.

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The minimum investments for initial and additional purchases of Advisor
Shares of the Fund are as follows:

INITIAL INVESTMENT ADDITIONAL INVESTMENTS
------------------ ----------------------

REGULAR ACCOUNTS $2,500 $1,000
------ ------
TRADITIONAL AND ROTH IRAS $2,500 $1,000
------ ------

The Trust may, in its sole discretion, waive these minimum initial or
subsequent investment amounts for share purchases by: an employee of
Schroders, any of its affiliates or a financial intermediary authorized to
sell shares of a Fund, or such employee's spouse or life partner, or
children or step-children age 21 or younger; investment advisory clients of
Schroders; and current or former Trustees. For share purchases made through
certain fund networks or other financial intermediaries, the investment
minimums associated with the policies and programs of the fund network or
financial intermediary will apply.

Advisor Shares of the Fund are intended for purchase by investors making a
minimum initial investment of $2,500 through a regular account or a
traditional or Roth IRA account and purchasing through an investment
intermediary. Investor Shares of the Fund are offered through another
prospectus and are intended for investors making a minimum initial
investment of $250,000 and purchasing directly from the Fund.

The Fund does not issue share certificates.

The Trust may suspend the offering of Advisor Shares of the Fund for any
period of time. The Trust may change any investment minimum from time to
time.

Purchases by check. You may purchase Advisor Shares of the Fund by mailing
a check (in U.S. dollars) payable to the Fund. If you wish to purchase
Advisor Shares of two or more Funds, make your check payable to Schroder
Mutual Funds and include written instructions as to how the amount of your
check should be allocated among the Funds whose shares you are purchasing.
Schroder Mutual Funds will not accept third-party checks or starter checks.
You should direct your check and your completed Account Application as
follows:

REGULAR MAIL OVERNIGHT OR EXPRESS MAIL
Schroder Mutual Funds Boston Financial Data Services, Inc.
P.O. Box 8507 Attn: Schroder Mutual Funds
Boston, MA 02266 66 Brooks Drive
Braintree, MA 02184

For initial purchases, a completed Account Application must accompany your
check.

Purchases by bank wire. If you make your initial investment by wire, a
completed Account Application must precede your order. Upon receipt of the
Application, BFDS will assign you an account number. BFDS will process wire
orders received prior to the close of trading on the Exchange (normally
4:00 p.m., Eastern Time) on each day the Exchange is open for trading at
the net asset value next determined as of the end of that day. BFDS will
process wire orders received after that time at the net asset value next
determined thereafter.

Once you have an account number, you may purchase Advisor Shares through
your Service Organization or directly from the Fund by calling BFDS at
(800) 464-3108 to give notice that you will send funds by wire, and obtain
a wire reference number. (From outside

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the United States, please call (617) 483-5000 and ask to speak with a
Schroder Mutual Funds representative.) Please be sure to obtain a wire
reference number. Instruct your bank to wire funds with the assigned
reference number as follows:

BFDS will not process your purchase until it receives the wired funds.

Automatic purchases. If you purchase Advisor Shares directly from the Trust
and the shares are held in your own name, you can make regular investments
of $100 or more per month or quarter in Advisor Shares of a Fund through
automatic deductions from your bank account. Please complete the
appropriate section of the Account Application if you would like to utilize
this option. For more information, please call (800) 464-3108. If you
purchase Advisor Shares through a Service Organization, your firm may also
provide automatic purchase options. Please contact your Service
Organization for details.

Purchases in kind. Investors may purchase Advisor Shares of the Fund for
cash or in exchange for securities, subject to the determination by
Schroders in its discretion that the securities are acceptable. (For
purposes of determining whether securities will be acceptable, Schroders
will consider, among other things, whether they are liquid securities of a
type consistent with the investment objective and policies of the Fund and
have a readily ascertainable value.) If the Fund receives securities from
an investor in exchange for Advisor Shares of the Fund, the Fund will under
some circumstances have the same tax basis in the securities as the
investor had prior to the exchange (and the Fund's gain for tax purposes
would be calculated with regard to the investor's tax basis), and in such
cases the Fund's holding period in those securities would include the
investor's holding period. Any gain on the sale of securities received in
exchange for Advisor Shares of the Fund would be subject to distribution as
capital gain to all of the Fund's shareholders. (In some circumstances,
receipt of securities from an investor in exchange for Advisor Shares of
the Fund may be a taxable transaction to the investor, in which case the
Fund's tax basis in the securities would reflect the fair market value of
the securities on the date of the exchange, and its holding period in the
securities would begin on that date.) The Fund values securities accepted
by Schroders in the same manner as are the Fund's portfolio securities as
of the time of the next determination of the Fund's net asset value.
Although the Fund seeks to determine the fair value of securities
contributed to the Fund, any valuation that does not reflect fair value may
dilute the interests of the purchasing shareholder or the other
shareholders of the Fund. All rights reflected in the market price of
accepted securities at the time of valuation become the property of the
Fund and must be delivered to the Fund upon receipt by the investor.
Investors may realize a taxable gain or loss upon the exchange. Investors
interested in purchases through exchange should telephone Schroders at
(800) 464-3108, their Schroders client representative, or other financial
intermediary.

Certain payments by Schroders or its affiliates. Schroder Fund Advisors
Inc., Schroders, or their affiliates may, at their own expense and out of
their own assets, provide

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compensation to financial intermediaries in connection with sales of Fund
shares or shareholder servicing. In some instances, they may make this
compensation available only to certain intermediaries who have sold or are
expected to sell significant amounts of shares of the Fund. If you purchase
or sell shares through an intermediary, the intermediary may charge a
separate fee for its services. Consult your intermediary for information.

If correspondence to the shareholder's address of record is returned, then,
unless BFDS determines the shareholder's new address, BFDS will reinvest
dividends and other distributions returned to it in the Fund, and if the
correspondence included checks, the checks will be canceled and
re-deposited to the shareholder's account at then-current net asset value.

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HOW TO SELL SHARES

When you may redeem. You may sell your Advisor Shares back to the Fund on
any day the Exchange is open either through your Service Organization or
directly to the Fund. If your shares are held in the name of a Service
Organization, you may only sell the shares through that Service
Organization. The Service Organization may charge you a fee for its
services. If you choose to sell your shares directly to the Fund, you may
do so by sending a letter of instruction or stock power form to Schroder
Mutual Funds, or by calling BFDS at (800) 464-3108. Redemption requests
received in good order by Schroder Mutual Funds, BFDS, your Service
Organization or another authorized broker or financial institution (as
described below) prior to the close of the Exchange on any day the Exchange
is open for trading will be priced at the net asset value next determined
as of the end of that day. Orders received after that time will receive the
next day's net asset value. A redemption request is in good order if it
includes the exact name in which the shares are registered, the investor's
account number, and the number of shares or the dollar amount of shares to
be redeemed, and, for written requests, if it is signed in accordance with
the account registration. A bank, broker-dealer, or certain other financial
institutions must guarantee the signature(s) of all account holders for any
redemption request in excess of $50,000, or for any amount being sent to an
address or bank account that is not registered on the account. The Stamp
2000 Medallion Guarantee is the only acceptable form of guarantee. An
investor can obtain this signature guarantee from a commercial bank,
savings bank, credit union, or broker-dealer that participates in one of
the Medallion signature guarantee programs. You may redeem your shares by
telephone only if you elected the telephone redemption privilege option on
your Account Application or otherwise in writing. Telephone redemption
proceeds will be sent only to you at an address on record with the Fund for
at least 30 days. Unless otherwise agreed, you may only exercise the
telephone redemption privilege to redeem shares worth not more than
$50,000. The Trust may require additional documentation from shareholders
that are corporations, partnerships, agents, fiduciaries, surviving joint
owners, those acting through powers of attorney, or similar delegation.

If you redeem shares through your Service Organization, your Service
Organization is responsible for ensuring that the Transfer Agent receives
your redemption request in proper form. If your Service Organization
receives Federal Reserve wires, you may instruct that your redemption
proceeds be forwarded by wire to your account with your Service
Organization; you may also instruct that your redemption proceeds be
forwarded to you by a wire transfer. Please indicate your Service
Organization's or your own complete wiring instructions. Your Service
Organization may charge you separately for this service.

Certain brokers or other financial institutions may accept redemption
orders for Advisor Shares on behalf of the Fund. Such brokers or financial
institutions may designate other intermediaries to accept redemption orders
on behalf of the Fund. For purposes of pricing, the Fund will be deemed to
have received a redemption order when an authorized broker or financial
institution or, if applicable, a broker or financial institution's
authorized designee, receives the order. Agreements between such brokers or
financial institutions and Schroder Fund Advisors Inc., the Trust's
distributor, provide that these orders will be priced at the Fund's net
asset value next determined after they are received by the broker or
financial institution or authorized designee. Orders received in good order
prior to the close of the Exchange on any day the Exchange is open for
trading will receive the net asset value next determined as of the end of
that day. Orders received after that time will receive the next day's net
asset value.

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The Trust will pay you for your redemptions as promptly as possible and in
any event within seven days after the request for redemption is received in
good order. The Trust generally sends payment for shares on the business
day after a request is received. In case of emergencies, the Trust may
suspend redemptions or postpone payment for more than seven days, as
permitted by law. If you paid for your Advisor Shares by check, the Trust
will not send you your redemption proceeds until the check you used to pay
for the shares has cleared, which may take up to 15 calendar days from the
purchase date.

Brokers or other agents may charge investors a fee for effecting
transactions in shares of a Fund, in addition to any fees the Fund charges.

Involuntary redemptions. If, because of your redemptions, your account
balance for the Fund falls below a minimum amount set by the Trustees
(presently $2,000), the Trust may choose to redeem your Advisor Shares in
the Fund and pay you for them. You will receive at least 30 days' written
notice before the Trust redeems your Advisor Shares, and you may purchase
additional Advisor Shares at any time to avoid a redemption. The Trust may
also redeem Advisor Shares if you own shares of the Fund above a maximum
amount set by the Trustees. There is currently no maximum, but the Trustees
may establish one at any time, which could apply to both present and future
shareholders.

Suspension. The Trust may suspend the right of redemption of the Fund or
postpone payment by the Fund during any period when: (1) trading on the
Exchange is restricted, as determined by the Securities and Exchange
Commission ("SEC"), or the Exchange is closed; (2) the SEC has by order
permitted such suspension; or (3) an emergency (as defined by rules of the
SEC) exists, making disposal of portfolio investments or determination of
the Fund's net asset value not reasonably practicable.

Redemptions in kind. The Trust does not expect to redeem Advisor Shares in
kind under normal circumstances. If the Trust redeems your Advisor Shares
in kind, you should expect to incur brokerage expenses and other
transaction costs upon the disposition of the securities you receive from
the Fund. In addition, the price of those securities may change between the
time when you receive the securities and the time when you are able to
dispose of them. The Trust may pay redemption proceeds in any amount with
respect to the Fund in whole or in part by a distribution in kind of
securities held by the Fund in lieu of cash.

General. If you request that your redemption proceeds be sent to you at an
address other than your address of record, or to another party, you must
include a signature guarantee for each signature, by an eligible signature
guarantor, such as a member firm of a national securities exchange or a
commercial bank or trust company located in the United States. If you are a
resident of a foreign country, another type of certification may be
required. For more details, please contact BFDS at (800) 464-3108, your
Schroders client representative or your financial intermediary. The Trust
may require corporations, fiduciaries, and other types of shareholders to
supply additional documents which support their authority to effect a
redemption. In an effort to prevent unauthorized or fraudulent redemption
requests by telephone, BFDS will follow reasonable procedures to confirm
that telephone instructions are genuine. BFDS and the Trust generally will
not be liable for any losses due to unauthorized or fraudulent purchase or
redemption requests, but the applicable party or parties may be liable if
they do not follow these procedures.

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redemption fee is principally to discourage market timing, and also to help
defray costs incurred by the Fund in connection with short-term trading by
investors in its shares.

To the extent that the redemption fee applies, the price you will receive
when you redeem your shares of the Fund is the net asset value next
determined after receipt of your redemption request in good order, minus
the redemption fee. The redemption fee is not assessed on shares acquired
through the reinvestment of dividends or distributions paid by the Fund, or
shares redeemed through designated systematic withdrawal plans. The
redemption fee does apply to IRAs, and may also apply to shares held in
employer- sponsored retirement accounts (such as 401(k), 403(b), Keogh,
profit sharing, SIMPLE IRA, SEP-IRA and money purchase pension accounts)
and shares in retirement plans held in broker omnibus accounts.

For purposes of computing the redemption fee, redemptions by a shareholder
to which the fee applies will be deemed to have been made on a
first-purchased, first-redeemed basis.

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EXCHANGES

You can exchange your Advisor Shares of the Fund for Advisor Shares of
other funds in the Schroder family of funds at any time at their respective
net asset values. An exchange of shares of the Fund may be subject to a
redemption fee of 2.00% as described above under "Redemption Fee" (such
that the exchange would be made at net asset value minus any redemption
fee). The Trust would treat the exchange as a sale of your Advisor Shares,
and any gain on the exchange will generally be subject to tax. For a
listing of the Schroder funds available for exchange and to exchange
Advisor Shares, please call (800) 464-3108. (From outside the United
States, please call (617) 483-5000 and ask to speak with a representative
of the Schroder Mutual Funds.) In order to exchange shares by telephone,
you must complete the appropriate section of the Account Application. The
Trust and Schroders reserve the right to change or suspend the exchange
privilege at any time. Schroders would notify shareholders of any such
change or suspension.

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ADDITIONAL INFORMATION ABOUT ADVISOR SHARES; DISTRIBUTION PLAN

The Trust sells Advisor Shares of the Fund at their net asset value without
any sales charges or loads, so that the full amount of your purchase
payment is invested in the Fund. You also receive the full value of your
Advisor Shares when you sell them back to the Fund, without any deferred
sales charge.

Distribution plans. The Fund has adopted a Distribution Plan pursuant to
Rule 12b-1 under the Investment Company Act of 1940, as amended, that
allows the Fund to pay distribution and other fees with respect to its
Advisor Shares. Under the Distribution Plan, the Fund may make payments at
an annual rate of up to 0.25% of the average daily net assets attributable
to its Advisor Shares to compensate the distributor for distribution
services and certain shareholder services with respect to the Fund's
Advisor Shares.

Because the fees are paid out of the Fund's assets on an ongoing basis,
over time these fees will increase the cost of an investment in Advisor
Shares of the Fund and may cost you more than paying other types of sales
charges.

In addition, the Fund may pay Schroders or its affiliates, banks,
broker-dealers, financial advisors, or other financial institutions fees
for sub-administration, sub-transfer agency, and other shareholder services
associated with shareholders whose shares are held of record in omnibus or
other group accounts. In addition, the Fund's service providers, including
Schroders, or any of their affiliates, may from time to time, make these
types of payment or payments for other shareholder services or
distribution, out of their own resources and without additional cost to the
Fund or its shareholders.

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DIVIDENDS AND DISTRIBUTIONS

The Fund declares dividends from net investment income and distributes
these dividends quarterly. The Fund distributes any net realized capital
gain at least annually. The Fund makes distributions from net capital gain
after applying any available capital loss carryovers.

YOU CAN CHOOSE FROM FOUR DISTRIBUTION OPTIONS:

-- Reinvest all distributions in additional Advisor Shares of your Fund;

-- Receive distributions from net investment income in cash while
reinvesting capital gains distributions in additional Advisor Shares of
your Fund;

-- Receive distributions from net investment income in additional Advisor
Shares of your Fund while receiving capital gain distributions in cash;
or

-- Receive all distributions in cash.

You can change your distribution option by notifying BFDS in writing. If
you do not select an option when you open your account, all distributions
by the Fund will be reinvested in Advisor Shares of the Fund. You will
receive a statement confirming reinvestment of distributions in additional
Fund shares promptly following the period in which the reinvestment occurs.

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FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

Excessive trading can hurt Fund performance, operations, and shareholders.
The Board of Trustees of the Trust has adopted policies and procedures with
respect to frequent purchases and redemptions of Fund shares by Fund
shareholders. The Fund discourages, and does not accommodate, frequent
purchases and redemption of the Fund's shares to the extent Schroders
believes that such trading is harmful to the Fund's shareholders, although
the Fund will not necessarily prevent all frequent trading in its shares.
The Fund reserves the right, in its discretion, to reject any purchase, in
whole or in part (including, without limitation, purchases by persons whose
trading activity Schroders believes could be harmful to the Fund). The
Trust or Schroders may also limit the amount or number of exchanges or
reject any purchase by exchange if the Trust or Schroders believes that the
investor in question is engaged in "market timing activities" or similar
activities that may be harmful to the Fund or its shareholders, although
the Trust and Schroders have not established any maximum amount or number
of such exchanges that may occur in any period. The Trust generally expects
to inform any persons that their purchase has been rejected within 24
hours. In addition, the Board of Trustees of the Trust has established a
2.00% redemption fee for shares of the Fund held for two months or less
from their date of purchase. See "How to Sell Shares -- Redemption Fee" for
further information. The ability of Schroders to monitor trades that are
placed through omnibus or other nominee accounts is limited in those
instances in which the broker, retirement plan administrator, or fee-based
program sponsor does not provide complete information to Schroders
regarding underlying beneficial owners of Fund shares. The Trust or its
distributor may enter into written agreements with financial intermediaries
who hold omnibus accounts that require the intermediaries to provide
certain information to the Trust regarding shareholders who hold shares
through such accounts and to restrict or prohibit trading in Fund shares by
shareholders identified by the Trust as having engaged in trades that
violate the Trust's "market timing" policies. The Trust or Schroders may
take any steps they consider appropriate in respect of frequent trading in
omnibus accounts, including seeking additional information from the holder
of the omnibus account or potentially closing the omnibus account (although
there can be no assurance that the Trust or Schroders would do so). Please
see the SAI for additional information on frequent purchases and
redemptions of Fund shares. There can be no assurance that the Fund or
Schroders will identify all harmful purchase or redemption activity, or
market timing or similar activities, affecting the Fund, or that the Fund
or Schroders will be successful in limiting or eliminating such activities.

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PAYMENT OF FEES

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TAXES

TAXES ON DIVIDENDS AND DISTRIBUTIONS. For federal income tax purposes,
distributions of investment income are taxed as ordinary income. Taxes on
distributions of capital gains are determined by how long the Fund owned
the investments that generated the gains, rather than how long you have
owned your shares. Distributions of net capital gains from the sale of
investments that the Fund has held for more than one year and that are
properly designated by the Fund as capital gain dividends will be taxable
as long-term capital gains. Distributions of gains from the sale of
investments that the Fund owned for one year or less and gains on the sale
of bonds characterized as a market discount sale will be taxable as
ordinary income. For taxable years beginning before January 1, 2011,
distributions of investment income designated by the Fund as derived from
"qualified dividend income" will be taxed in the hands of individuals at
rates applicable to long-term capital gains, provided holding period and
other requirements are met at both the shareholder and Fund level. The Fund
does not expect a significant portion of its distributions to be derived
from qualified dividend income.

Distributions are taxable to shareholders even if they are paid from income
or gains earned by the Fund before a shareholder's investment (and thus
were included in the price the shareholder paid). Distributions are taxable
whether shareholders receive them in cash or reinvest them in additional
shares.

The Fund's investment in certain debt obligations may cause the Fund to
recognize taxable income in excess of the cash generated by such
obligations. Thus, the Fund could be required at times to liquidate other
investments in order to satisfy its distribution requirements.

In general, dividends (other than capital gain dividends) paid to a
shareholder that is not a "U.S. person" within the meaning of the Internal
Revenue Code (a "foreign person"), are subject to withholding of U.S.
federal income tax at a rate of 30% (or lower applicable treaty rate).
However, under the American Jobs Creation Act of 2004, effective for
taxable years of the Fund beginning after December 31, 2004 and before
January 1, 2008, the Fund generally will not be required to withhold any
amounts with respect to distributions of (i) U.S. source interest income
that would not be subject to U.S. federal income tax if earned directly by
an individual foreign person, and (ii) net short-term capital gains in
excess of net long-term capital losses, in each case to the extent such
distributions are properly designated by the Fund.

Long-term capital gain rates applicable to individuals have been
temporarily reduced -- in general, to 15% with lower rates applying to
taxpayers in the 10% and 15% rate brackets -- for taxable years beginning
before January 1, 2011.

TAXES WHEN YOU SELL, REDEEM OR EXCHANGE YOUR SHARES. Any gain resulting
from a redemption, sale or exchange (including an exchange for shares of
another fund) of your shares in the Fund will also generally be subject to
federal income tax at either short-term or long-term capital gain rates
depending on how long you have owned your shares.

FOREIGN TAXES. The Fund's investments in foreign securities may be subject
to foreign withholding or other taxes. In that case, the Fund's return on
those securities would be

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decreased. Shareholders of Schroders funds that invest more than 50% of
their assets in foreign securities may be entitled to claim a credit or
deduction with respect to foreign taxes. Shareholders of other Schroders
funds generally will not be entitled to claim a credit or deduction with
respect to foreign taxes. In addition, investments in foreign securities
may increase or accelerate the Fund's recognition of ordinary income and
may affect the timing or amount of the Fund's distributions.

DERIVATIVES. The Fund's use of derivatives may affect the amount, timing,
and character of distributions to shareholders and, therefore, may increase
the amount of taxes payable by shareholders.

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DISCLOSURES OF FUND PORTFOLIO INFORMATION

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USA PATRIOT ACT

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain,
verify, and record information that identifies each person who opens an
account. What this means to you: When you open an account directly with the
Fund, you will be asked your name, address, date of birth, and other
information that will allow you to be identified. You may also be asked for
other identifying documentation. If the Trust is unable to verify the
information shortly after your account is opened, your account may be
closed and your shares redeemed at their net asset values at the time of
the redemption.

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