497 1 file1.htm

Filed pursuant to Rule 497(c)
as to Schroder International
Diversified Value Fund and Schroder
Total Return Fixed Income Fund
and pursuant to Rule 497(e)
as to all the other Funds
of Schroder Series Trust
under the Securities Act of 1933,
as amended
Registration File No.: 33-65632

[SCHRODERS LOGO]
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PROSPECTUS

August 30, 2006

EQUITY FUNDS
------------

SCHRODER EMERGING MARKET EQUITY FUND

SCHRODER INTERNATIONAL ALPHA FUND

SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND

SCHRODER NORTH AMERICAN EQUITY FUND

SCHRODER U.S. OPPORTUNITIES FUND

SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND

TAXABLE FIXED INCOME FUNDS
--------------------------

SCHRODER ENHANCED INCOME FUND

SCHRODER STRATEGIC BOND FUND

SCHRODER TOTAL RETURN FIXED INCOME FUND

TAX-EXEMPT FIXED INCOME FUNDS
-----------------------------

SCHRODER MUNICIPAL BOND FUND

SCHRODER SHORT-TERM MUNICIPAL BOND FUND

Investor Shares

This Prospectus describes eleven mutual funds (each, a "Fund" and collectively,
the "Funds") offered by Schroder Capital Funds (Delaware), Schroder Series
Trust, and Schroder Global Series Trust (each, a "Trust" and collectively, the
"Trusts").

SCHRODER EMERGING MARKET EQUITY FUND seeks capital appreciation through
investment principally in equity securities of companies in emerging market
countries in regions such as Asia, Latin America, Eastern Europe, the
Middle East, and Africa.

SCHRODER INTERNATIONAL ALPHA FUND seeks long-term capital appreciation
through investment in securities markets outside the United States.

SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND seeks long-term capital
appreciation by investing principally in a portfolio of equity securities
of companies located outside the United States that the Fund's investment
sub-adviser considers to offer attractive valuations.

SCHRODER NORTH AMERICAN EQUITY FUND seeks capital growth by investing
primarily in equity securities of companies in the United States.

SCHRODER U.S. OPPORTUNITIES FUND seeks capital appreciation by investing
primarily in equity securities of companies in the United States with
market capitalizations of $2.2 billion or less.

SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND seeks capital
appreciation by investing primarily in equity securities of small and mid
cap companies in the United States.

SCHRODER ENHANCED INCOME FUND seeks high current income, consistent with
the preservation of capital and reasonable liquidity. As a secondary
objective, the Fund seeks a high rate of total return. The Fund invests in
a diversified portfolio of U.S. dollar-denominated income-producing
obligations. The Fund's dollar weighted average portfolio duration will
typically be from three to six months.

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

SCHRODER TOTAL RETURN FIXED INCOME FUND seeks a high level of total return
by investing in a portfolio of fixed income obligations. The Fund intends
to maintain a dollar-weighted average portfolio duration of three to six
years.

SCHRODER MUNICIPAL BOND FUND seeks a high level of income exempt from
regular federal income tax, consistent with the preservation of capital by
investing in a portfolio of investment grade municipal bonds. The Fund
intends to maintain a dollar-weighted average portfolio maturity of five to
ten years.

SCHRODER SHORT-TERM MUNICIPAL BOND FUND seeks a high level of income exempt
from regular federal income tax, consistent with the preservation of
capital by investing in a portfolio of investment grade short-term
municipal bonds. The Fund intends to maintain a dollar-weighted average
portfolio maturity of not more than three years.

This Prospectus explains what you should know about the Funds before you invest.
Please read it carefully. You can call the Schroder Mutual Funds at (800)
464-3108 to find out more about these Funds 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 CAPITAL FUNDS (DELAWARE)
SCHRODER SERIES TRUST
SCHRODER GLOBAL SERIES TRUST

TABLE OF CONTENTS

PAGE
----

SUMMARY INFORMATION ..................................................... 1
SCHRODER EMERGING MARKET EQUITY FUND ................................. 1
SCHRODER INTERNATIONAL ALPHA FUND .................................... 5
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND ........................ 9
SCHRODER NORTH AMERICAN EQUITY FUND .................................. 13
SCHRODER U.S. OPPORTUNITIES FUND ..................................... 17
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND ................... 21
SCHRODER ENHANCED INCOME FUND ........................................ 24
SCHRODER STRATEGIC BOND FUND ......................................... 29
SCHRODER TOTAL RETURN FIXED INCOME FUND .............................. 33
SCHRODER MUNICIPAL BOND FUND ......................................... 38
SCHRODER SHORT-TERM MUNICIPAL BOND FUND .............................. 42
FEES AND EXPENSES ....................................................... 46
PRINCIPAL RISKS OF INVESTING IN THE FUNDS ............................... 49
NON-PRINCIPAL INVESTMENT STRATEGIES AND TECHNIQUES ...................... 63
MANAGEMENT OF THE FUNDS ................................................. 66
HOW THE FUNDS' SHARES ARE PRICED ........................................ 73
HOW TO BUY SHARES ....................................................... 74
HOW TO SELL SHARES ...................................................... 77
EXCHANGES ............................................................... 80
DIVIDENDS AND DISTRIBUTIONS ............................................. 81
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES ....................... 82
PAYMENT OF FEES ......................................................... 83
TAXES ................................................................... 84
DISCLOSURES OF FUND PORTFOLIO INFORMATION ............................... 86
FINANCIAL HIGHLIGHTS .................................................... 87
USA PATRIOT ACT ......................................................... 90

-i-

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SUMMARY INFORMATION

SCHRODER EMERGING MARKET EQUITY FUND

INVESTMENT OBJECTIVE. To seek capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES. The Fund normally invests at least 80% of
its net assets in equity securities of companies the Fund's sub-adviser
considers to be "emerging market" issuers. The Fund may invest the
remainder of its assets in securities of issuers located anywhere in the
world. The Fund may invest in common and preferred stocks, securities
convertible into common and preferred stocks, and warrants to purchase
common and preferred stocks. The Fund may also invest in sponsored or
unsponsored American Depositary Receipts ("ADRs"), Global Depository
Receipts ("GDRs"), European Depository Receipts ("EDRs") or other similar
securities representing ownership of foreign securities (collectively,
"Depositary Receipts"). The Fund may also invest in securities of
closed-end investment companies and exchange-traded funds ("ETFs"),
including securities of emerging market issuers. An investment in a
domestic closed-end fund or ETF that has a policy that it will normally
invest at least 80% of its net assets in equity securities of emerging
market issuers, and has "emerging market" or the equivalent in its name, or
foreign funds with similar investment policies, will be treated as an
investment in equity securities of emerging market issuers for purposes of
determining if the Fund has invested at least 80% of its net assets in such
securities.

The Fund invests principally in equity securities of issuers domiciled or
doing business in "emerging market" countries in regions such as Asia,
Latin America, Eastern Europe, the Middle East and Africa. The Fund's
sub-adviser currently considers "emerging market" issuers to be issuers
domiciled in or deriving a substantial portion of their revenues from
countries not included at the time of investment in the Morgan Stanley
International World Index of major world economies. Countries currently in
this Index include: Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Greece, Hong Kong SAR, Ireland, Italy, Japan, the
Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland, the United Kingdom, and the United States. The Fund's
sub-adviser may at times determine based on its own analysis that an
economy included in the Index should nonetheless be considered an emerging
market country, in which case that country would constitute an emerging
market country for purposes of the Fund's investments. The Fund's
sub-adviser has determined that Chinese companies listed in Hong Kong will
be considered emerging market issuers for this purpose. There is no limit
on the amount of the Fund's assets that may be invested in securities of
issuers domiciled in any one emerging market country, although the Fund
will typically seek to allocate its investments among a number of different
emerging market countries.

The Fund invests in issuers and countries that its sub-adviser believes
offer the potential for capital growth. In identifying investments for the
Fund, the Fund's sub-adviser considers a variety of factors, including the
issuer's likelihood of above average earnings growth, the securities'
attractive relative valuation, and whether the issuer enjoys proprietary
advantages. The Fund may invest in securities of companies of any size,
including companies with large, medium, and small market capitalizations,
including micro-cap companies. The Fund may also purchase securities issued
in initial public offerings. In addition, the Fund's sub-adviser considers
the risk of local political and/or economic instability associated with
particular countries and regions and the liquidity of

-1-

local markets. The Fund generally sells securities when the Fund's
sub-adviser believes they are fully priced or to take advantage of other
investments the Fund's sub-adviser considers more attractive.

The Fund may purchase or sell structured notes, or enter into swap
transactions, for hedging or as an alternative to purchasing or selling
securities. The Fund's sub-adviser may hedge some of the Fund's foreign
currency exposure back into the U.S. dollar, although it does not normally
expect to do so. The Fund may also purchase or sell futures on indices,
including country specific or overall emerging market indices. The Fund may
use derivatives to gain exposure to securities or market sectors as a
substitute for cash investments (not for leverage) or pending the sale of
securities by the Fund and reinvestment of the proceeds.

PRINCIPAL RISKS.

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

o 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 described below under "Small and Mid Cap Companies Risk."

o 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.

o 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.

o 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 emerging market country, although the Fund will typically seek to
allocate its investments among a number of different emerging market
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.

o SMALL AND MID CAP COMPANIES RISK. Many companies located in emerging
markets have smaller market capitalizations than those of comparable
companies located in developed markets. Small companies tend to be
more vulnerable to adverse developments than larger companies. The
Fund may invest in micro-cap companies, which tend to be particularly
sensitive to the risks associated with small

-2-

companies. Small companies may have limited product lines, markets, or
financial resources, or may depend on a limited management group.
Their securities may trade less frequently and in limited volumes. As
a result, the prices of these securities may fluctuate more than the
prices of securities of larger, more widely traded companies. Also,
there may be less publicly available information about small and mid
cap companies or less market interest in their securities as compared
to larger companies, and it may take longer for the price of the
securities to reflect the full value of their issuers' earnings
potential or assets.

o EQUITY SECURITIES RISK. Equity securities are securities that
represent an ownership interest (or the right to acquire such an
interest) in a company and include common and preferred stocks. In the
event an issuer is liquidated or declares bankruptcy, the claims of
owners of bonds take priority over holders of preferred stock, whose
claims take priority over the claims of those who own common stock.

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o WARRANTS RISK. The Fund may invest in warrants to purchase equity
securities. The price, performance and liquidity of such warrants are
typically linked to the underlying stock, less transaction costs. In
addition to the market risk related to the underlying holdings, the
Fund bears additional counterparty risk with respect to the issuing
broker. Moreover, there is currently no active trading market for
equity-linked warrants.

o INVESTMENTS IN POOLED VEHICLES RISK. The Fund may invest in shares of
closed-end investment companies (including single country funds) and
ETFs. Investing in another investment company exposes the Fund to all
the risks of that investment company, and, in general, subjects it to
a pro rata portion of the other investment company's fees and
expenses.

o DEPOSITARY RECEIPTS RISK. The Fund may invest in sponsored or
unsponsored Depositary Receipts. Investments in non-U.S. issuers
through Depositary Receipts and similar instruments may involve
certain risks not applicable to investing in U.S. issuers, including
changes in currency rates, application of local tax laws, changes in
governmental administration or economic or monetary policy or changed
circumstances in dealings between nations. Costs may be incurred in
connection with conversions between various currencies.

o EQUITY MARKETS RISK. The values of equity securities fluctuate in
response to issuer, political, market, and economic developments.
Equity prices can fluctuate dramatically over short time periods in
response to these developments. Different parts of the market and
different types of equity securities can react differently to these
developments. For example, large capitalization stocks can react
differently from small capitalization stocks, and "growth" stocks can
react differently from "value" stocks. Issuer, political, or economic
developments can affect a single issuer, issuers within an industry or
economic sector or geographic region, or the market as a whole.

limited periods. Under certain market conditions, very few companies,
if any, may determine to make initial public offerings of their
securities. At any particular time or from time to time the Fund may
not be able to invest in securities issued in IPOs or invest to the
extent desired. The investment performance of the Fund during periods
when it is unable to invest significantly or at all in initial public
offerings may be lower than during periods when the Fund is able to do
so. The prices of securities sold in initial public offerings can be
highly volatile.

o 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.

o 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.

o 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.

Performance Information. The Fund recently commenced operations and does not yet
have historical investment performance.

-4-

SCHRODER INTERNATIONAL ALPHA FUND

INVESTMENT OBJECTIVE. Long-term capital appreciation through investment in
securities markets outside the United States.

PRINCIPAL INVESTMENT STRATEGIES. The Schroder International Alpha Fund
(formerly, Schroder International Fund) will invest principally in
securities of companies located outside of the United States, and normally
invests at least 65% of its total assets in equity securities of companies
the Fund's adviser considers to be located outside of the United States.
The Fund will invest in a variety of countries throughout the world. 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 will consider an issuer located
in a country if it is organized under the laws of that country and is
principally traded in that country, or is domiciled and has its principal
place of business located in that country and is principally traded in that
country, or if the Fund's sub-adviser determines that the issuer has more
than 50% of its assets in or derives more than 50% of its revenues from
that country. The Fund invests in common and preferred stocks, securities
convertible into common and preferred stocks, and warrants to purchase
common and preferred stocks.

The Fund normally invests a substantial portion of its assets in countries
included in the Morgan Stanley Capital International EAFE Index, which is a
market weighted index of companies representative of the market structure
of certain developed market countries in Europe, Australia, Asia, and the
Far East. The Fund expects typically to invest in forty to sixty companies
located outside of the United States at any one time.

The Fund invests in issuers that the Fund's sub-adviser believes offer the
potential for capital growth. In identifying candidates for investment, the
Fund's sub-adviser may consider the issuer's likelihood of above average
earnings growth, the securities' attractive relative valuation, the quality
of the securities, and whether the issuer has any proprietary advantages.
The Fund generally sells securities when the Fund's sub-adviser believes
they are fully priced or when significantly more attractive investment
candidates become available. The Fund may invest in companies of any market
capitalization. The Fund may purchase or sell futures contracts and
options, in order to gain exposure to particular securities or markets, in
connection with hedging transactions, or otherwise to increase total
return. By employing these techniques the Fund's portfolio manager tries to
add incremental return over the Fund's benchmark index, which incremental
return is sometimes referred to as "alpha."

The Fund also may do the following:

o Invest in securities of issuers domiciled or doing business in
"emerging market" countries.

o Invest in securities of closed-end investment companies and ETFs
(open-end investment companies whose shares may be bought or sold by
investors in transactions on major stock exchanges) that invest
primarily in foreign securities.

PRINCIPAL RISKS.

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

-5-

o FOREIGN CURRENCY 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.

o EMERGING MARKETS 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.

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o EQUITY MARKETS RISK. A risk of investing in the Fund is the risk that
the value of the equity securities in the portfolio will fall, or will
not appreciate as anticipated by the Fund's sub-adviser, due to
factors that adversely affect markets generally or particular
companies in the portfolio. The values of equity securities fluctuate
in response to issuer, political, market, and economic developments.
Equity prices can fluctuate dramatically over short time periods in
response to these developments. Different parts of the market and
different types of equity securities can react differently to these
developments. For example, large capitalization stocks can react
differently from small capitalization stocks, and "growth" stocks can
react differently from "value" stocks. Issuer, political, or economic
developments can affect a single issuer, issuers within an industry or
economic sector or geographic region, or the market as a whole.

-6-

less frequently and in limited volumes. As a result, the prices of
these securities may fluctuate more than the prices of securities of
larger, more widely traded companies. Also, there may be less publicly
available information about small and mid cap companies or less market
interest in their securities as compared to larger companies, and it
may take longer for the price of the securities to reflect the full
value of their issuers' earnings potential or assets.

o 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.

o ISSUER FOCUS RISK. The Fund may invest in a smaller number of
companies than comprise the portfolios of other similar mutual funds.
The Fund expects typically to invest in forty to sixty companies at
any time. When the Fund invests in a relatively small number of
issuers, changes in the value of one or more portfolio securities may
have a greater effect on the Fund than if the Fund invested more
broadly.

o 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.

Performance Information.(+)(++)

Below is a bar chart that shows the investment returns of the Fund's
Investor Shares for each of its last ten full calendar years of operations.
The table following the bar chart shows how the Fund's average annual
returns for the last year, for the last five years, and for the last ten
years compare to a broad-based securities market index. The bar chart and
table provide some indication of the risks of investing in the Fund by
comparing the Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
---- ---- ----- ----- ----- ------ ------ ----- ----- -----

9.93% 3.34% 13.52% 30.99% -2.29% -25.81% -19.76% 32.93% 15.24% 18.32%

-7-

During the periods shown above, the highest quarterly return was 21.57% for
the quarter ended December 31, 1999, and the lowest was -22.38% for the
quarter ended September 30, 2002.

AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR FIVE YEARS TEN YEARS
------------------------------------------------------ -------- ---------- ---------

RETURN BEFORE TAXES 18.32% 1.53% 5.94%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 17.96% 0.46% 2.87%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND
SHARES (1) 12.30% 0.69% 3.68%
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 13.54% 4.55% 5.84%

(1) After tax returns are estimated using the highest historical
individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Actual after-tax returns depend on an
investor's tax situation and may differ from those shown. After-tax
returns are not relevant to investors who hold their shares in the
Fund through tax-deferred arrangements, such as 401(k) plans or
individual retirement accounts. In some cases, the return after taxes
may exceed the return before taxes due to an assumed tax benefit from
any losses on a sale of Fund shares at the end of the measurement
period.

(2) The Morgan Stanley Capital International EAFE Index is a market
weighted index composed of companies representative of the market
structure of certain developed market countries in Europe, Australia,
Asia, and the Far East, and reflects dividends net of non-recoverable
withholding tax.

(+) The current portfolio management team primarily responsible for making
investment decisions for the Fund assumed this responsibility
effective March 2005. The performance results shown in the bar chart
and table for periods prior to such date were achieved by the Fund
under different lead portfolio managers.

(++) Effective April 1, 2006, the combined advisory and administrative fees
of the Fund increased to 0.975% per annum. If the Fund had paid such
higher fees during the periods shown, the returns shown in the bar
chart and table would have been lower. See "Management of the Funds --
Management Fees."

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-8-

SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND

INVESTMENT OBJECTIVE. Long-term capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests principally in a
diversified portfolio of equity securities of companies located outside of
the United States that the Fund's sub-adviser considers to offer attractive
valuations. The Fund may invest in common and preferred stocks, securities
convertible into common and preferred stocks, and warrants to purchase
common and preferred stocks.

The Fund's sub-adviser applies a proprietary quantitative investment
analysis that seeks to develop a portfolio designed to capture the
historically high returns from value stocks but with lower risk than the
Morgan Stanley Capital International EAFE Index over the longer term and to
provide a dividend yield typically above that Index. The sub-adviser
expects that a substantial portion of the Fund's investments will normally
be in countries included in the Morgan Stanley Capital International EAFE
Index, which is a market-weighted index of companies representative of the
market structure of certain developed market countries in Europe,
Australia, Asia, and the Far East, although the Fund may invest in any
country in the world, including "emerging markets" countries. (The
sub-adviser currently expects to invest not more than 25% of the Fund's
assets in securities of companies domiciled in emerging markets countries.)

The main elements of the sub-adviser's portfolio construction process are
the identification of attractive value stocks within a broad universe of
companies around the world and careful management of portfolio risks. The
portfolio construction process is bottom-up. The sub-adviser seeks to
select stocks anywhere in the world with high dividends and strong
cash-flow. The sub-adviser does not generally specify "top-down" geographic
or sector allocations for the Fund's portfolio; rather, the Fund's
geographic and sector allocations are principally the result of the
sub-adviser's selection of individual companies that it believes offer the
greatest value. (The sub-adviser may adjust geographic or sector weights
resulting from this process in order to avoid extreme outcomes.)

The sub-adviser does not consider benchmark weights when it constructs the
Fund's portfolio. Individual stock weights are determined using a
disciplined stock weighting process. The Fund's sub-adviser believes that
indices weighted by market capitalization reflect a natural bias towards
expensive stocks and geographic regions, and that, by contrast, a
"bottom-up" approach to portfolio construction, not constrained by
reference to a specific benchmark or index, has the potential to provide
investment in less expensive stocks offering better investment value.

The Fund will normally invest at least 65% of its net assets in equity
securities of companies located in countries outside of the United States.
The Fund will invest in a variety of countries throughout the world. The
Fund may, from time to time, invest more than 25% of its assets in any one
country or group of countries. The Fund's sub-adviser will consider an
issuer to be located in a country if it is organized under the laws of and
its equity securities are principally traded in that country, or it is
domiciled or has its principal place of business located in and its equity
securities are principally traded in that country, or if the Fund's
sub-adviser determines that the issuer has more than 50% of its assets in
or derives more than 50% of its revenues from that country. The Fund may
invest in companies of any market capitalization, including large, well
known companies, as well as smaller, less closely followed companies,
including micro-cap companies.

-9-

The Fund may, but is not required to, enter into foreign currency exchange
transactions, for hedging purposes or to adjust the exposure of the Fund to
changes in the values of various foreign currencies.

The Fund generally sells securities when the Fund's sub-adviser believes
they are fully priced or when the sub-adviser considers more attractive
investment candidates are available.

The Fund may purchase or sell futures contracts and options and enter into
total return swaps, in order to gain exposure to particular securities or
markets in connection with hedging transactions or otherwise to increase
total return. The Fund may from time to time enter into other transactions
involving derivatives, including over-the-counter transactions, if the
sub-adviser considers it appropriate.

The Fund may also invest in closed-end investment companies, trusts, ETFs
(open-end investment companies whose shares may be bought or sold by
investors in transactions on major stock exchanges), and real estate
investment trusts ("REITs").

PRINCIPAL RISKS.

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

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

-10-

o SMALL AND MID CAP COMPANIES RISK. Small companies tend to be more
vulnerable to adverse developments than larger companies. The Fund may
invest in micro-cap companies, which tend to be particularly sensitive
to the risks associated with small companies. Small companies may have
limited product lines, markets, or financial resources, or may depend
on a limited management group. Their securities may trade less
frequently and in limited volumes. As a result, the prices of these
securities may fluctuate more than the prices of securities of larger,
more widely traded companies. Also, there may be less publicly
available information about small and mid cap companies or less market
interest in their securities as compared to larger companies, and it
may take longer for the price of the securities to reflect the full
value of their issuers' earnings potential or assets.

o INVESTMENTS IN POOLED VEHICLES RISK. The Fund may invest in shares of
closed-end investment companies (including single country funds),
trusts, and ETFs. Investing in another investment company or pooled
vehicle exposes the Fund to all the risks of that other investment
company or pooled vehicle, and, in general, subjects it to a pro rata
portion of the other investment company or pooled vehicle's fees and
expenses.

-11-

pass-through of income under the Internal Revenue Code of 1986, as
amended (the "Code"). In addition, some REITs have limited
diversification because they invest in a limited number of properties,
a narrow geographic area, or a single type of property. Also, the
organizational documents of a REIT may contain provisions that make
changes in control of the REIT difficult and time-consuming. As a
shareholder in a REIT a Fund, and indirectly the Fund's shareholders,
would bear its ratable share of the REIT's expenses and would at the
same time continue to pay its own fees and expenses.

o 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.

Performance Information. The Fund recently commenced operations and does not
yet have historical investment performance.

-12-

SCHRODER NORTH AMERICAN EQUITY FUND

INVESTMENT OBJECTIVE. The Fund seeks long-term capital growth.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests principally in equity
securities of companies in the United States. The Fund may invest in common
and preferred stocks, convertible preferred stocks, and warrants to
purchase common and preferred stocks.

The Fund's sub-adviser is responsible for day-to-day portfolio management.
It uses a proprietary quantitative investment analysis that evaluates
market and economic sectors, companies, and stocks on the basis of
long-term historical data. The Fund's sub-adviser uses that analysis to
construct a highly diversified portfolio of stocks. In addition, the Fund's
sub-adviser attempts to identify anticipated short-term deviations from
longer-term historical trends and cycles, and may adjust the Fund's
portfolio to take advantage of those deviations.

The Fund's investment portfolio, including the number of companies
represented in the portfolio and the sector weightings of the portfolio,
will change as the Fund's sub-adviser's evaluation of economic and market
factors, as well as factors affecting individual companies, changes.

The Fund will invest in a well diversified portfolio of companies of any
size that its sub-adviser judges to be attractive compared to the overall
market. The Fund's portfolio may include large, well known companies, as
well as smaller, less closely followed companies, including micro-cap
companies. The Fund generally sells securities when the Fund's sub-adviser
believes they are fully priced or when significantly more attractive
investment candidates become available.

The Fund may purchase or sell futures contracts and options, in order to
gain exposure to particular securities or markets, in connection with
hedging transactions, or otherwise to increase total return. The Fund may
also invest in closed-end investment companies and in ETFs (open-end
investment companies whose shares may be bought or sold by investors in
transactions on major stock exchanges).

The Fund normally invests at least 80% of its net assets in equity
securities of companies organized and principally traded in, or with their
principal places of business and principally traded in, North America. The
Fund may use derivatives for purposes of complying with this test. An
investment in a U.S. closed-end fund or ETF that has a policy that it will
normally invest at least 80% of its net assets in equity securities of
North American companies, and has "North America" or the equivalent in its
name, or foreign funds with similar investment policies, will be treated as
an investment in equity securities of North American companies for purposes
of determining if the Fund has invested at least 80% of its net assets in
such securities. The Fund considers North America to consist of the United
States and Canada.

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.

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

o EQUITY SECURITIES RISK. Equity securities are securities that
represent an ownership interest (or the right to acquire such an
interest) in a company and include common

-13-

and preferred stocks. In the event an issuer is liquidated or declares
bankruptcy, the claims of owners of bonds take priority over holders
of preferred stock, whose claims take priority over the claims of
those who own common stock.

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o EQUITY MARKETS RISK. A risk of investing in the Fund is the risk that
the value of the equity securities in the portfolio will fall, or will
not appreciate as anticipated by the Fund's sub-adviser, due to
factors that adversely affect North American equities markets
generally or particular companies in the portfolio. The values of
equity securities fluctuate in response to issuer, political, market,
and economic developments. Equity prices can fluctuate dramatically
over short time periods in response to these developments. Different
parts of the market and different types of equity securities can react
differently to these developments. For example, large capitalization
stocks can react differently from small capitalization stocks, and
"growth" stocks can react differently from "value" stocks. Issuer,
political, or economic developments can affect a single issuer,
issuers within an industry or economic sector or geographic region, or
the market as a whole.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its sub-adviser to manage its
portfolio successfully. There can be no assurance that the
sub-adviser's use of the quantitative analysis described above will
produce a portfolio that will achieve long-term capital growth or that
the Fund's sub-adviser will interpret or implement the results of any
quantitative analysis in a manner that will result in long-term
capital growth. In addition, to the extent that the sub-adviser
adjusts the Fund's portfolio to take advantage of short-term
deviations from longer-term historical trends and cycles, there can be
no assurance that such deviations will in fact occur or that the
Fund's portfolio will be positioned optimally to take advantage of
them.

o SMALL AND MID CAP COMPANIES RISK. Small and mid cap companies tend to
be more vulnerable to adverse developments than larger companies. The
Fund may invest in micro-cap companies, which tend to be particularly
sensitive to the risks associated with small companies. Small and mid
cap companies may have limited product lines, markets, or financial
resources, or may depend on a limited management group. Their
securities may trade less frequently and in limited volumes. As a
result, the prices of these securities may fluctuate more than the
prices of securities of larger, more widely traded companies. Also,
there may be less publicly available information about small and mid
cap companies or less market interest in their securities as compared
to larger companies, and it may take longer for the price of the
securities to reflect the full value of their issuers' earnings
potential or assets.

o GEOGRAPHIC FOCUS RISK. Because the Fund invests principally in equity
securities of North American companies, its performance may at times
be worse than the performance of other mutual funds that invest more
broadly.

-14-

o 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.

o 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 approximately 160%.

Performance Information.

Below is a bar chart that shows the investment returns of the Fund's
Investor Shares for each of its full calendar years since the Fund
commenced operations. The table following the bar chart shows how the
Fund's average annual returns for the last year and life of the Fund
compare to a broad-based securities market index. The bar chart and table
provide some indication of the risks of investing in the Fund by comparing
the Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2004 2005
----- ----
11.61% 7.01%

During the periods shown above, the highest quarterly return was 9.30% for
the quarter ended December 31, 2004, and the lowest was -1.40% for the
quarter ended March 31, 2005.

-15-

AVERAGE ANNUAL TOTAL RETURNS LIFE OF FUND
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR (SINCE SEPTEMBER 17, 2003)
----------------------------------------------- -------- --------------------------

RETURN BEFORE TAXES 7.01% 12.43%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 5.36% 10.59%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF
FUND SHARES (1) 5.49% 9.79%
FTSE NORTH AMERICAN INDEX (2) (REFLECTS NO
DEDUCTION FOR FEES, EXPENSES OR TAXES) 7.45% 12.48%
S&P 500 INDEX (3) 4.91% 10.90%

(1) After tax returns are estimated using the highest historical
individual federal margin income tax rates and do not reflect the
impact of state and local taxes. Actual after-tax returns depend on an
investor's tax situation and may differ from those shown. After-tax
returns are not relevant to investors who hold their shares in the
Fund through tax-deferred arrangements, such as 401(k) plans or
individual retirement accounts. In some cases, the return after taxes
may exceed the return before taxes due to an assumed tax benefit from
any losses on a sale of Fund shares at the end of the measurement
period.

(2) The FTSE North American Index is a market capitalization value
weighted composite index of over 700 U.S. and Canadian companies and
reflects the reinvestment of dividends.

(3) The S&P 500 Index is a market capitalization value weighted composite
index of 500 large capitalization U.S. companies and reflects the
reinvestment of dividends.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-16-

SCHRODER U.S. OPPORTUNITIES FUND

INVESTMENT OBJECTIVE. To seek capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES. In selecting investments for the Fund, the
Fund's adviser seeks to identify securities of companies that it believes
offer the potential for capital appreciation, based on novel, superior or
niche products or services, operating characteristics, quality of
management, an entrepreneurial management team, their having gone public in
recent years, opportunities provided by mergers, divestitures or new
management, or other factors.

The Fund may invest in common and preferred stocks, securities convertible
into common and preferred stocks and REITs. Under current market
conditions, the Fund expects to invest primarily in equity securities of
small and micro capitalization companies in the United States. The Fund's
adviser considers small capitalization companies to be companies that have
market capitalizations of $2.2 billion or less, and micro-capitalization
companies to be companies with market capitalizations of $500 million or
less, measured at the time of investment. However, the Fund may invest any
portion of its assets in equity securities of larger companies. The Fund
may also invest in securities of companies outside the United States,
although the Fund will normally invest at least 80% of its net assets in
securities of companies the Fund's adviser considers to be located in the
United States. The Fund will consider an issuer located in the United
States if it is organized under the laws of the United States or any state
of the United States and is principally traded in the United States, or is
domiciled and has its principal place of business located in the United
States and is principally traded in the United States, or if the Fund's
adviser determines that the issuer has more than 50% of its assets in or
derives more than 50% of its revenues from the United States. The Fund
generally sells securities when the Fund's adviser believes they are fully
priced or when more attractive investment candidates become available. The
Fund may purchase securities offered in initial public offerings.

The Fund may use options (puts and calls) for hedging purposes, or to gain
exposure to securities or market sectors as a substitute for cash
investments (not for leverage) or pending the sale of securities by the
Fund and reinvestment of the proceeds. Any use of derivatives strategies
entails the risks of investing directly in the securities or instruments
underlying the derivatives strategies, as well as the risks of using
derivatives generally, described in this Prospectus and in the Fund's
Statement of Additional Information ("SAI").

PRINCIPAL RISKS.

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

o SMALL COMPANIES RISK. Small companies tend to be more vulnerable to
adverse developments than larger companies. The Fund may invest in
micro-cap companies, which tend to be particularly sensitive to the
risks associated with small companies. Small companies may have
limited product lines, markets, or financial resources, or may depend
on a limited management group. Their securities may trade less
frequently and in limited volumes. As a result, the prices of these
securities may fluctuate more than the prices of securities of larger,
more widely traded companies. Also, there may be less publicly
available information about small companies or less market interest in
their securities as compared to larger companies, and it may take
longer for the price of the securities to reflect the full value of
their issuers' earnings potential or assets.

-17-

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o REAL ESTATE INVESTMENT TRUST RISK. An investment in a REIT may be
subject to risks similar to those associated with direct ownership of
real estate, including losses from casualty or condemnation, and
changes in local and general economic conditions, supply and demand,
interest rates, zoning laws, regulatory limitations on rents, property
taxes and operating expenses. In addition, an investment in a REIT is
subject to additional risks, such as poor performance by the manager
of the REIT, adverse changes to the tax laws or failure by the REIT to
qualify for tax-free pass-through of income under the Code. In
addition, some REITs have limited diversification because they invest
in a limited number of properties, a narrow geographic area, or a
single type of property. Also, the organizational documents of a REIT
may contain provisions that make changes in control of the REIT
difficult and time-consuming. As a shareholder in a REIT a Fund, and
indirectly the Fund's shareholders, would bear its ratable share of
the REIT's expenses and would at the same time continue to pay its own
fees and expenses.

o INITIAL PUBLIC OFFERINGS (IPOS) RISK. The Fund may purchase securities
of companies in initial public offerings of their securities, either
in the initial offering itself or shortly after the initial offering.
Such investments are subject generally to the risks described above
under "Small Companies Risk." Such securities have no trading history,
and information about such companies may be available for very limited
periods. Under certain market conditions, very few companies, if any,
may determine to make initial public offerings of their securities. At
any particular time or from time to time the Fund may not be able to
invest in securities issued in IPOs or invest to the extent desired.
The investment performance of the Fund during periods when it is
unable to invest significantly or at all in initial public offerings
may be lower than during periods when the Fund is able to do so. The
prices of securities sold in initial public offerings can be highly
volatile.

o ISSUER FOCUS RISK. The Fund may invest in a smaller number of
companies than comprise the portfolios of other similar mutual funds.
When the Fund invests in a relatively small number of issuers, changes
in the value of one or more portfolio securities may have a greater
effect on the Fund than if the Fund invested more broadly.

-18-

o GEOGRAPHIC FOCUS RISK. Because the Fund invests principally in equity
securities of U.S. companies, its performance may at times be worse
than performance of other mutual funds that invest more broadly.

o 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.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's adviser and the portfolio manager 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.

o OVER-THE-COUNTER RISK. Securities traded in over-the-counter markets
may trade in smaller volumes, and their prices may be more volatile,
than securities principally traded on securities exchanges. Such
securities may be less liquid than more widely traded securities. In
addition, the prices of such securities may include an undisclosed
dealer markup, which the Fund pays as part of the purchase price.

Performance Information.(+)(++)

Below is a bar chart that shows the investment returns of the Fund's
Investor Shares for each of its last ten full calendar years of operations.
The table following the bar chart shows how the Fund's average annual
returns for the last year, the last five years, and for the last ten years
compare to a broad-based securities market index. The bar chart and table
provide some indication of the risks of investing in the Fund by comparing
the Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
----- ----- ----- ----- ----- ----- ------ ----- ----- -----
22.29% 26.86% -9.23% 13.10% 31.22% 11.56% -18.87% 37.14% 25.29% 6.42%

During the periods shown above, the highest quarterly return was 18.60% for
the quarter ended June 30, 1997, and the lowest was -23.27% for the quarter
ended September 30, 1998.

-19-

AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR FIVE YEARS TEN YEARS
-------------------------------------------- -------- ---------- ---------

RETURN BEFORE TAXES 6.42% 10.60% 13.21%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 5.85% 9.49% 10.46%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE
OF FUND SHARES (1) 4.96% 8.80% 10.02%
RUSSELL 2000 INDEX (2) (REFLECTS NO
DEDUCTION FOR FEES, EXPENSES OR TAXES) 4.55% 8.22% 9.26%

(2) The Russell 2000 Index is a market capitalization weighted broad based
index of 2000 small capitalization U.S. companies.

(+) The current portfolio manager primarily responsible for making
investment decisions for the Fund assumed this responsibility
effective January 1, 2003. The performance results shown in the bar
chart and table for periods prior to January 1, 2003 were achieved by
the Fund under a different portfolio manager.

(++) Effective May 1, 2006, the combined advisory and administrative fees
of the Fund increased to 1.00% per annum. If the Fund had paid such
higher fees during the periods shown, the returns shown in the bar
chart and table would have been lower. See "Management of the Funds --
Management Fees."

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-20-

SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND

INVESTMENT OBJECTIVE. To seek capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests primarily in companies in
the United States (determined as described below) that the Fund's adviser
considers to be small or mid cap companies. In selecting investments for
the Fund, the Fund's adviser seeks to identify securities of companies that
it believes offer the potential for capital appreciation, based on novel,
superior, or niche products or services, operating characteristics, quality
of management, an entrepreneurial management team, their having gone public
in recent years, opportunities provided by mergers, divestitures, new
management, or other factors. These factors generally apply to all
investments made by the Fund, including initial public offerings, although
the Fund may also invest in certain initial public offerings that the
portfolio manager believes will be in high demand. The Fund may sell a
security when the Fund's adviser believes it is fully priced or when
investments become available that it believes are more attractive.

The Fund normally invests at least 80% of its net assets in companies
considered by the Fund's adviser at the time to be small or mid cap
companies located in the United States. The Fund's adviser currently
considers a company to be a small or mid cap company if the company has a
market capitalization (at the time of purchase) of between $1 billion and
$7 billion. The Fund may also invest in equity securities of micro-cap
companies or larger companies, if the Fund's adviser believes they offer
the potential for capital appreciation. The Fund invests in common and
preferred stocks, convertible preferred stocks, warrants to purchase common
and preferred stocks, and REITs. The Fund may purchase securities on
securities exchanges as well as over-the-counter, and may also purchase
securities offered in initial public offerings. The Fund may use options
for hedging purposes, or to gain exposure to securities or market sectors
as a substitute for cash investments (not for leverage) or pending the sale
of securities by the Fund and reinvestment of the proceeds. Any use of
derivatives strategies entails the risks of investing directly in the
securities or instruments underlying the derivatives strategies, as well as
the risks of using derivatives generally, described in this Prospectus and
in the Fund's SAI.

The Fund's adviser will consider an issuer located in the United States if
it is organized under the laws of the United States or any state of the
United States and is principally traded in the United States, or is
domiciled or has its principal place of business located in the United
States and is principally traded in the United States, or if the Fund's
adviser determines that the issuer has more than 50% of its assets in or
derives more than 50% of its revenues from the United States.

PRINCIPAL RISKS.

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

-21-

their securities as compared to larger companies, and it may take
longer for the price of the securities to reflect the full value of
their issuers' earnings potential or assets.

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o INITIAL PUBLIC OFFERINGS (IPOS) RISK. The Fund may purchase securities
of companies in initial public offerings of their securities, either
in the initial offering itself or shortly after the initial offering.
Such investments are subject generally to the risks described above
under "Small and Mid Cap Companies Risk." Such securities have no
trading history, and information about such companies may be available
for very limited periods. Under certain market conditions, very few
companies, if any, may determine to make initial public offerings of
their securities. At any particular time or from time to time the Fund
may not be able to invest in securities issued in IPOs or invest to
the extent desired. The investment performance of the Fund during
periods when it is unable to invest significantly or at all in initial
public offerings may be lower than during periods when the Fund is
able to do so. The prices of securities sold in initial public
offerings can be highly volatile.

-22-

Issuer, political, or economic developments can affect a single
issuer, issuers within an industry or economic sector or geographic
region, or the market as a whole.

o 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.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's 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.

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 Fund's SAI.

-23-

SCHRODER ENHANCED INCOME FUND

INVESTMENT OBJECTIVES. Principally, to seek high current income, consistent
with the preservation of capital and reasonable liquidity; secondarily, to
seek a high rate of total return.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests in a diversified
portfolio of U.S. dollar-denominated income-producing obligations.

The Fund will normally invest at least 80% of its net assets in
income-producing obligations, which may include, for example:

o securities issued or guaranteed by the U.S. Government or its agencies
or instrumentalities;

o debt securities of domestic or foreign corporations;

o mortgage-backed and other asset-backed securities;

o obligations of non-U.S. governments or their subdivisions, agencies,
and government-sponsored enterprises;

o obligations of international agencies or supranational entities;

o commercial paper and master demand notes;

o preferred securities; and

o short-term investments, such as repurchase agreements, money market
securities, bank certificates of deposit, fixed time deposits, and
bankers' acceptances.

The Fund's adviser currently expects that a substantial portion of the
Fund's assets will be invested in mortgage-backed and other asset-backed
securities.

Foreign securities in which the Fund invests will be denominated in the
U.S. dollar.

The Fund's dollar weighted average portfolio duration will typically be
from three to six months, although the adviser may extend the Fund's dollar
weighted average portfolio duration to as long as 1.5 years, in response to
economic, market, or other conditions. 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.

The Fund is not a money market fund and is not subject to the portfolio
quality, maturity, and other requirements applicable to money market funds.

The Fund's investment adviser will trade the Fund's portfolio securities
actively. The adviser may sell certain investments it believes are fully
priced and purchase securities it believes may be undervalued, or it may
trade securities to take advantage of what it believes to be temporary
disparities in normal yield relationships between securities. The Fund's
adviser uses quantitative analysis to understand the structures and risks
of fixed income securities available for investment, and to identify market
sectors offering favorable investment opportunities.

-24-

The Fund may enter into interest rate futures and options, interest rate
swap agreements, and credit default swaps. (A derivative instrument will be
considered to be an income-producing obligation if it is itself an
income-producing obligation or, in the adviser's judgment, it may provide
an investment return comparable to the return that might be provided by an
income-producing obligation.) The Fund may use these "derivatives" for
hedging purposes. The Fund may also use derivatives to gain exposure to
securities or market sectors as a substitute for cash investments (not for
leverage) or pending the sale of securities by the Fund and reinvestment of
the proceeds. For example, the Fund may enter into a so-called credit
default swap with respect to one or more fixed income securities to take
advantage of increases or decreases in the values of those securities
without actually purchasing or selling the securities. The Fund may also
seek to obtain market exposure to the securities in which it may invest by
entering into forward contracts or similar arrangements to purchase those
securities in the future. Any use of derivatives strategies entails the
risks of investing directly in the securities or instruments underlying the
derivatives strategies, as well as the risks of using derivatives
generally, described in this Prospectus and in the Fund's SAI.

The Fund will normally maintain a dollar weighted average rating of the
securities owned by the Fund of at least Aa2 (or the equivalent),
considering unrated securities backed by the full faith and credit of the
U.S. Government to be rated AAA, by following the guidelines listed below:

o The Fund will normally invest only in securities issued or guaranteed
by the U.S. Government or its agencies or instrumentalities and in
securities of "investment grade," which means 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 adviser has determined the securities to
be of comparable quality.

o The Fund will normally invest more than 50% of its total assets in
securities which a nationally recognized statistical rating
organization has rated Aaa or AAA (or the equivalent).

o The Fund will normally invest no more than 25% of its total assets in
securities that are rated below Aa3 (or the equivalent) by a
nationally recognized statistical rating organization.

o The Fund will normally invest no more than 10% of its total assets in
securities that are rated below A3 (or the equivalent) by a nationally
recognized statistical rating organization.

o The Fund expects not to invest in money market securities that have a
short-term rating lower than A2 (or the equivalent) by a nationally
recognized statistical rating organization.

In the event that different nationally recognized statistical rating
organizations have given different ratings to securities owned by the Fund,
the higher rating will be used for purposes of determining whether the Fund
has complied with these limitations. If a security is not rated by a
nationally recognized statistical rating organization but the Fund's
adviser believes that it is of comparable quality to a security that is so
rated, that security will be considered to have been rated at that level.

-25-

PRINCIPAL RISKS.

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

o 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.

o 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.

o 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.

o 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.

o 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.

o 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.

-26-

o 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 adviser
currently expects that the portfolio turnover rate for the Fund's
current fiscal year will be approximately 400%.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's 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.

Performance Information.

Below is a bar chart that shows the investment returns of the Fund's
Investor Shares for each of its full calendar years since the Fund
commenced operations. The table following the bar chart shows how the
Fund's average annual returns for the last year (life of the Fund) compare
to a broad-based securities market index. The bar chart and table provide
some indication of the risks of investing in the Fund by comparing the
Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2005
----
2.92%

During the period shown above, the highest quarterly return was 0.95% for
the quarter ended June 30, 2005, and the lowest was 0.47% for the quarter
ended March 31, 2005.

AVERAGE ANNUAL TOTAL RETURNS ONE YEAR
(FOR THE PERIOD ENDED DECEMBER 31, 2005) (LIFE OF FUND)
------------------------------------------------------ --------------
RETURN BEFORE TAXES 2.92%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 1.75%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND
SHARES (1) 1.89%
LIBOR 3 MONTH USD FIXED INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 3.64%

-27-

return before taxes due to an assumed tax benefit from any losses on a
sale of Fund shares at the end of the measurement period.

(2) The LIBOR 3 Month USD Fixed Index is a broad-based basket of U.S. debt
securities.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-28-

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 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.

-29-

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.

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

o 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. 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.

o 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.

o HIGH-YIELD/JUNK BONDS RISK. Securities rated below investment grade
("high-yield bonds" or "junk bonds") lack outstanding investment
characteristics and have

-30-

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.

o 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.

o 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.

o 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.

-31-

o 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.

-32-

SCHRODER TOTAL RETURN FIXED INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES. The Schroder Total Return Fixed Income
Fund (formerly, Schroder U.S. Core Fixed Income Fund) normally invests at
least 80% of its net assets in fixed income obligations. (This policy is
non-fundamental and may be changed by the Trustees, without a vote of the
shareholders of the Fund, upon at least 60 days' prior written notice to
shareholders). In making investments for the Fund, the adviser seeks to
invest the Fund's assets in a portfolio of securities that offer high total
return -- from current income, increases in market values of the Fund's
investments, or both. The adviser currently considers fixed income
obligations to include:

o securities issued or guaranteed by the U.S. Government or its agencies
or instrumentalities;

o debt securities of domestic or foreign corporations;

o mortgage-backed and other asset-backed securities;

o taxable and tax-exempt municipal bonds;

o obligations of international agencies or supranational entities;

o debt securities convertible into equity securities;

o inflation-indexed bonds;

o structured notes, including hybrid or "indexed" securities,
event-linked bonds, and loan participations;

o delayed funding loans and revolving credit facilities; and

o short-term investments, such as repurchase agreements, bank
certificates of deposit, fixed time deposits, and bankers'
acceptances.

The Fund may invest in securities of companies located in a variety of
countries outside the United States, including obligations of non-U.S.
governmental issuers or of private issuers located in any country outside
the United States, including emerging market countries. The Fund will
normally invest no more than 20% of its total assets in securities that are
not denominated in the U.S. dollar.

The Fund's adviser currently expects that a substantial portion of the
Fund's assets will be invested in mortgage-backed and asset-backed
securities.

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 adviser has
determined the securities to be of comparable quality. The Fund may invest
up to 20% of the Fund's total assets in securities rated below "investment
grade" (or, if unrated, determined by the Fund's adviser to be of
comparable quality), sometimes referred to as "junk bonds," 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

-33-

securities to be of comparable quality. If more than one nationally
recognized statistical rating organization has rated a security, the
adviser will consider the highest rating for the purposes of determining
whether the security is "investment grade."

Fixed income securities in which the Fund invests may include securities
that pay interest at fixed rates or at floating or variable rates; payments
of principal or interest may be made at fixed intervals or only at maturity
or upon the occurrence of stated events or contingencies. The Fund may also
invest in zero-coupon securities.

The Fund may enter into interest rate futures and options, interest rate
swap agreements and credit default swaps. (A derivative instrument will be
considered to be a fixed income security if it is itself a fixed income
security or, in the adviser's judgment, it may provide an investment return
comparable to the return that might be provided by a fixed income
security.) The Fund may use these "derivatives" strategies for hedging
purposes. The Fund may also use derivatives to gain exposure to securities
or market sectors as a substitute for cash investments (not for leverage)
or pending the sale of securities by the Fund and reinvestment of the
proceeds. For example, the Fund may enter into a so-called credit default
swap with respect to one or more fixed income securities to take advantage
of increases or decreases in the values of those securities without
actually purchasing or selling the securities. The Fund may also seek to
obtain market exposure to the securities in which it may invest by entering
into forward contracts or similar arrangements to purchase those securities
in the future. Any use of derivatives strategies entails the risks of
investing directly in the securities or instruments underlying the
derivatives strategies, as well as the risks of using derivatives
generally, described in this Prospectus and in the Fund's SAI.

The Fund intends to maintain a dollar weighted average portfolio duration
of three to six years. 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.

In managing the Fund, the Fund's adviser generally relies on detailed
proprietary research. The adviser focuses on the sectors and securities it
believes are undervalued relative to the market.

The Fund's adviser will trade the Fund's portfolio securities actively. In
selecting individual securities for investment, the Fund's adviser
typically:

o uses in-depth fundamental research to identify sectors and securities
for investment by the Fund and to analyze risk;

o exploits inefficiencies in the valuation of risk and reward;

o looks to capitalize on rapidly shifting market risks and dynamics
caused by economic and technical factors; and

o considers the liquidity of securities and the portfolio overall as an
important factor in portfolio construction.

-34-

The Fund generally sells securities in order to take advantage of
investments in other securities offering what the adviser believes is the
potential for more attractive current income or capital gain or both.

PRINCIPAL RISKS.

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

o 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.

-35-

o 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 adviser
currently expects that the portfolio turnover rate for the Fund's
current fiscal year will be approximately 400%.

o 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.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's 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.

-36-

Performance Information.

Below is a bar chart that shows the investment returns of the Fund's
Investor Shares for each of its full calendar years since the Fund
commenced operations. The table following the bar chart shows how the
Fund's average annual returns for the last year (life of the Fund) compare
to a broad-based securities market index. The bar chart and table provide
some indication of the risks of investing in the Fund by comparing the
Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2005
----
3.08%

During the period shown above, the highest quarterly return was 3.20% for
the quarter ended June 30, 2005, and the lowest was -0.82% for the quarter
ended September 30, 2005.

AVERAGE ANNUAL TOTAL RETURNS ONE YEAR
(FOR THE PERIOD ENDED DECEMBER 31, 2005) (LIFE OF FUND)
---------------------------------------------------- --------------
RETURN BEFORE TAXES 3.08%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 1.60%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND
SHARES (1) 1.99%
LEHMAN US AGGREGATE BOND INDEX (2) (REFLECTS NO
DEDUCTION FOR FEES, EXPENSES OR TAXES) 2.43%

(2) The Lehman US Aggregate Bond Index is a widely used measure of
short-term debt returns. It is not managed.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-37-

SCHRODER MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE. To seek a high level of current income exempt from
federal income tax, consistent with the preservation of capital.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests primarily in municipal
bonds that:

o pay interest that is exempt from federal income tax (but which may be
subject to federal alternative minimum tax ("AMT"));

o are investment grade in quality; and

o have intermediate to long-term effective maturities (three years or
longer) (a bond's effective maturity is generally shorter than its
stated maturity due to several factors, including, for example,
prepayment patterns, call dates, and put features).

"Municipal bonds" are debt obligations of any maturity issued by a state,
its political subdivisions (for example, counties, cities, towns, villages,
districts, and authorities), and their agencies, instrumentalities, or
other governmental units, the interest from which is, in the opinion of
bond counsel, exempt from federal income tax.

The Fund's adviser considers a security "investment grade" if either 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 adviser has determined the securities to be
of comparable quality. In the event that different nationally recognized
statistical ratings organizations have given different ratings to
securities owned by the Fund, the higher rating will be used. The Fund's
adviser expects that a significant portion of the securities in which the
Fund invests will not be rated by a nationally recognized statistical
rating organization, but the credit quality will be determined by the
adviser.

The Fund intends to maintain a dollar weighted average effective portfolio
maturity of five to ten years, although it may invest in securities of any
maturity. Under normal circumstances, the Fund invests at least 80% of its
net assets in municipal bonds. As a matter of fundamental policy, under
normal circumstances, the Fund invests at least 80% of its net assets in
investments the income from which is exempt from federal income tax, but
which may be subject to federal AMT. The Fund may invest the remainder of
its assets in taxable municipal bonds, securities issued by the U.S.
Treasury, or in taxable money market obligations. The Fund may purchase
securities on a delayed delivery or when-issued basis.

Debt securities in which the Fund invests may include securities that pay
interest at fixed rates or at floating or variable rates; payments of
principal or interest may be made at fixed intervals or only at maturity or
upon the occurrence of stated events or contingencies.

The Fund's adviser allocates the Fund's assets among different issuers,
states, market sectors (for example, general obligation securities of
specific states or securities financing specific projects), and maturities
based on its view of their relative values.

The Fund may invest more than 25% of its assets in one or more sectors of
the municipal bond market -- that is, in a group of issuers that finance
similar projects -- including education, health care, housing,
transportation, and utilities sectors or in obligations of issuers in any
state. In managing the Fund, the Fund's adviser generally relies on
detailed proprietary research. The Fund's adviser focuses on the securities
and sectors it believes are undervalued relative to the market, rather than
relying on interest rate forecasts.

-38-

In selecting individual securities for investment, the Fund's adviser
typically:

o assigns a relative value, based on creditworthiness, cash flow,
liquidity, and price, to each bond;

o uses in-depth credit analysis to determine the issuer's ability to
fulfill its obligations;

o compares each bond with a pre-refunded or escrowed to maturity
municipal bond to develop a theoretical intrinsic value;

o looks to exploit any inefficiencies between intrinsic value and market
trading price; and

o subordinates sector weightings to individual securities that may be
undervalued.

The Fund's adviser may sell a security for the Fund if the security reaches
the adviser's target price or if the adviser's credit outlook for the
security has deteriorated. The Fund's adviser may also sell a security to
facilitate the purchase of a security it believes is more attractive for
the Fund. Because the Fund's adviser devotes substantial independent
research to the selection of the Fund's investments, the Fund will likely
hold a number of investments that are not generally held by other mutual
funds.

PRINCIPAL RISKS.

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

o VOLATILITY OF THE MUNICIPAL BOND MARKET RISK. The municipal bond
market is volatile and can be significantly affected by adverse tax,
legislative, or political changes and the financial condition of the
issuers of municipal bonds.

o 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 maturities and
in the case of portfolios of securities with longer average
maturities.

o 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.

o INFLATION/DEFLATION RISK. Inflation risk is the risk that the value of
the Fund's investments may decline as inflation decreases 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.

o STATE AND ISSUER RISK. Investing in bonds issued by a state or by
state agencies or political subdivisions in the same state may make
the Fund more vulnerable to that state's economy and to issues
affecting its municipal bond issuers. Geographic or sector
concentration may cause the value of the Fund's shares to change more
than the value of shares of funds that invest in a greater variety of
investments. The Fund may also invest a substantial portion of its
assets in a particular issue, and to that extent the Fund's investment
performance and net asset value will be adversely affected by a
decrease in the value of that issue more than if such Fund invested in
a greater number of securities.

-39-

o 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"), 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.

o MANAGEMENT RISK. Because the Fund is an actively managed, its
investment return depends on the ability of its adviser to manage its
portfolio successfully. The adviser and the Fund's portfolio managers
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.

Performance Information.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2004 2005
---- ----
3.70% 3.07%

During the periods shown above, the highest quarterly return was 3.12% for
the quarter ended September 30, 2004, and the lowest was -1.70% for the
quarter ended June 30, 2004.

AVERAGE ANNUAL TOTAL RETURNS LIFE OF THE FUND
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR (SINCE DECEMBER 31, 2003)
-------------------------------------------- -------- -------------------------

RETURN BEFORE TAXES 3.07% 3.39%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 2.83% 3.24%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE
OF FUND SHARES (1) 3.08% 3.23%
LEHMAN 5-YEAR MUNICIPAL BOND INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES
OR TAXES) 0.95% 1.82%

-40-

(2) The Lehman 5-Year Municipal Bond Index is a rules-based,
market-value-weighted unmanaged index of debt obligations issued by
municipalities with an approximate maturity of five years.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-41-

SCHRODER SHORT-TERM MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE. To seek a high level of income exempt from federal
income tax, consistent with the preservation of capital.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests primarily in municipal
bonds that:

o pay interest that is exempt from federal income tax (but which may be
subject to federal AMT);

o are investment grade in quality; and

o have effective maturities of no more than three years (a bond's
effective maturity is generally shorter than its stated maturity due
to several factors, including, for example, prepayment patterns, call
dates, and put features).

The Fund intends to maintain a dollar weighted average effective portfolio
maturity of not more than three years, although it may invest in securities
of any maturity. Under normal circumstances, the Fund invests at least 80%
of its net assets in municipal bonds. As a matter of fundamental policy,
under normal circumstances, the Fund invests at least 80% of its net assets
in investments the income from which is exempt from federal income tax, but
which may be subject to federal AMT. The Fund may invest the remainder of
its assets in taxable municipal bonds, securities issued by the U.S.
Treasury, or in taxable money market obligations. The Fund may purchase
securities on a delayed delivery or when issued basis.

-42-

In selecting individual securities for investment, the Fund's adviser
typically:

o assigns a relative value, based on creditworthiness, cash flow,
liquidity, and price, to each bond;

o uses in-depth credit analysis to determine the issuer's ability to
fulfill its obligations;

o compares each bond with a pre-refunded or escrowed to maturity
municipal bond to develop a theoretical intrinsic value;

o looks to exploit any inefficiencies between intrinsic value and market
trading price; and

o subordinates sector weightings to individual securities that may be
undervalued.

The Fund's adviser may sell a security for the Fund if the security reaches
the adviser's target price or if the adviser's credit outlook for the
security has deteriorated. The Fund's adviser may also sell a security to
facilitate the purchase of a security it believes is more attractive for
the Fund. Because the Fund's adviser devotes substantial independent
research to the selection of the Funds' investments, the Fund will likely
hold a number of investments that are not generally held by other mutual
funds.

PRINCIPAL RISKS.

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

o VOLATILITY OF THE MUNICIPAL BOND MARKET. The municipal bond market is
volatile and can be significantly affected by adverse tax,
legislative, or political changes and the financial condition of the
issuers of municipal bonds.

o 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.

o STATE AND ISSUER RISK. Investing in bonds issued by a state or by
state agencies or political subdivisions in the same state may make a
Fund more vulnerable to that state's economy and to issues affecting
its municipal bond issuers. Geographic or sector concentration may
cause the value of the Fund's shares to change more than the value of
shares of funds that invest in a greater variety of investments. The
Fund may also invest a substantial portion of its assets in a
particular issue, and to that extent the Fund's investment performance
and net asset value will be adversely affected by a decrease in the
value of such issue more than if such Fund invested in a greater
number of securities.

-43-

o 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"), 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.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The adviser and the Fund's portfolio managers 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.

Performance Information.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2004 2005
---- ----
1.79% 2.52%

During the periods shown above, the highest quarterly return was 1.36% for
the quarter ended September 30, 2004, and the lowest was -0.84% for the
quarter ended June 30, 2004.

RETURN BEFORE TAXES 2.52% 2.15%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 2.31% 2.02%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE
OF FUND SHARES (1) 2.52% 2.08%
LEHMAN 1-YEAR MUNICIPAL BOND INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES
OR TAXES) 1.49% 1.28%

-44-

return before taxes due to an assumed tax benefit from any losses on a
sale of Fund shares at the end of the measurement period.

(2) The Lehman 1-Year Municipal Bond Index is a rules-based,
market-value-weighted index of debt obligations issued by
municipalities with short term maturities.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

----------

Changes in investment objective and policies. The policies described above
requiring the Funds to invest at least 80% of their 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 applicable Fund's SAI as fundamental, the Funds' investment objectives and
policies may be changed by the Trustees without a vote of the shareholders.

-45-

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

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

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
Schroder Emerging Market Equity Fund 2.00%(1)
Schroder International Alpha Fund 2.00%(1)
Schroder International Diversified Value Fund 2.00%(1)
Schroder North American Equity Fund None
Schroder U.S. Opportunities Fund 2.00%(1)
Schroder U.S. Small and Mid Cap Opportunities Fund 2.00%(1)
Schroder Enhanced Income Fund None
Schroder Strategic Bond Fund 2.00%(1)
Schroder Total Return Fixed Income Fund None
Schroder Municipal Bond Fund None
Schroder Short-Term Municipal Bond Fund None

(1) Shares of this 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
U.S.
SCHRODER SCHRODER SCHRODER SMALL AND
EMERGING SCHRODER SCHRODER NORTH U.S. MID CAP
MARKET INTERNATIONAL INTERNATIONAL AMERICAN OPPORT- OPPORT-
EQUITY ALPHA FUND DIVERSIFIED EQUITY UNITIES UNITIES
FUND (1) VALUE FUND FUND FUND (1) FUND
-------- ------------- ------------- -------- -------- ---------

MANAGEMENT
FEES (2) 1.00% 0.975% 1.00% 0.25% 1.00% 1.00%
DISTRIBUTION
(12b-1) FEES None None None None None None
OTHER EXPENSES
(2)(3)(4) 2.14% 3.152% 2.18% 0.10% 0.40% 1.53%
TOTAL ANNUAL
FUND OPERATING
EXPENSES 3.14% 4.127% 3.18% 0.35% 1.40% 2.53%
LESS: FEE WAIVER
AND EXPENSE
LIMITATION (5) (1.39)% (2.877)% (1.93)% None None (1.13)%
NET EXPENSES (5) 1.75% 1.25% 1.25% 0.35% 1.40% 1.40%

SCHRODER SCHRODER
TOTAL SHORT-
SCHRODER SCHRODER RETURN SCHRODER TERM
ENHANCED STRATEGIC FIXED MUNICIPAL MUNICIPAL
INCOME BOND INCOME BOND BOND
FUND FUND FUND FUND FUND
-------- --------- -------- --------- ---------

MANAGEMENT
FEES (2) 0.25% 0.75% 0.25% 0.40% 0.40%
DISTRIBUTION
(12b-1) FEES None None None None None
OTHER EXPENSES
(2)(3)(4) 0.57% 1.21% 2.80% 0.53% 0.45%
TOTAL ANNUAL
FUND OPERATING
EXPENSES 0.82% 1.96% 3.05% 0.93% 0.85%
LESS: FEE WAIVER
AND EXPENSE
LIMITATION (5) (0.42)% (0.81%) (2.65)% (0.38)% (0.30)%
NET EXPENSES (5) 0.40% 1.15% 0.40% 0.55% 0.55%

-46-

(1) Restated to reflect current fees.

(2) Management Fees for each Fund include all fees payable to the Funds'
adviser and its affiliates for investment advisory and fund
administration services. The Funds also pay administrative or
sub-administrative fees directly to SEI Investments Global Fund
Services, and those fees are included under "Other Expenses."

(3) "Other Expenses" for Schroder Emerging Market Equity Fund, Schroder
International Diversified Value Fund, Schroder U.S. Small and Mid Cap
Opportunities Fund, and Schroder Strategic Bond Fund are based on
estimated amounts for each Fund's current fiscal year.

(4) Each Fund may at times invest excess cash in money market funds. Each
Fund does not currently expect the fees and expenses incurred by such
Fund as a result of these investments to exceed 0.01% of the average
net assets of such Fund. In the last fiscal year, the Funds did not
make any such investments and, as a result, no such fees and expenses
are reflected in the table. If a Fund does make such investments, its
fees and expenses may be higher than shown in the table.

(5) The "Net Expenses" shown for certain Funds reflect the effect of
contractually imposed fee waivers and/or expense limitations on the
Total Annual Fund Operating Expenses of each such Fund. In order to
limit the expenses of these Funds' Investor Shares, the Funds' adviser
has contractually agreed to reduce its compensation (and, if
necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses, which may include typically non-recurring
expenses such as, for example, organizational expenses, litigation
expenses, and shareholder meeting expenses) until February 28, 2007
for Schroder Enhanced Income Fund, Schroder Municipal Bond Fund, and
Schroder Short-Term Municipal Bond Fund, March 31, 2007 for
Schroder Emerging Market Equity Fund, Schroder International Alpha
Fund, Schroder U.S. Opportunities Fund, and Schroder U.S. Small and
Mid Cap Opportunities Fund, and June 30, 2007 for Schroder Strategic
Bond Fund, to the extent that the Total Annual Fund Operating Expenses
of a Fund allocable to its Investor Shares exceed the following annual
rates (based on the average daily net assets attributable to each
Fund's Investor Shares): Schroder Emerging Market Equity Fund --
1.75%; Schroder International Alpha Fund -- 1.25%; Schroder U.S.
Opportunities Fund -- 1.70%; Schroder U.S. Small and Mid Cap
Opportunities Fund -- 1.40%; Schroder Enhanced Income Fund -- 0.40%;
Schroder Strategic Bond Fund -- 1.15%; Schroder Municipal Bond Fund --
0.55%; and Schroder Short-Term Municipal Bond Fund -- 0.55%. In order
to limit the expenses of each of the Schroder International
Diversified Value Fund's and the Schroder Total Return Fixed Income
Fund's Investor Shares, the Funds' adviser has contractually agreed to
reduce its compensation (and, if necessary, to pay other Fund
expenses) until August 30, 2007 to the extent that the Total Annual
Operating Expenses of a Fund (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) allocable to each Fund's
Investor Shares exceed the following annual rates (based on the
average daily net assets attributable to each Fund's Investor Shares):
Schroder International Diversified Value Fund -- 1.25%; and Schroder
Total Return Fixed Income Fund -- 0.40%. Net Expenses of the Funds'
Investor Shares may be higher than the Net Expenses shown in the table
above to the extent the Fund has such interest, taxes, or
extraordinary expenses. The Schroder International Diversified Value
Fund and the Schroder Strategic Bond Fund do not anticipate any such
expenses in each such Fund's first fiscal year. In the last fiscal
year, Schroder International Alpha Fund, Schroder North American
Equity Fund, Schroder U.S. Opportunities Fund, Schroder Enhanced
Income Fund, Schroder Total Return Fixed Income Fund, Schroder
Municipal Bond Fund, and Schroder Short-Term Municipal Bond Fund had
no such expenses, and these Funds do not expect to incur such expenses
in the next fiscal year. The fee waiver and/or expense limitations for
the Funds may only be terminated during their term by the Board of
Trustees.

-47-

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

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

The Example assumes that you invest $10,000 in Investor Shares of a 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 5 YEARS 10 YEARS
------ ------- ------- --------

SCHRODER EMERGING MARKET EQUITY FUND(1) $178 $838 N/A N/A
SCHRODER INTERNATIONAL ALPHA FUND(1) $127 $992 $1,871 $4,138
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND(2) $127 $799 N/A N/A
SCHRODER NORTH AMERICAN EQUITY FUND $ 36 $113 $ 197 $ 443
SCHRODER U.S. OPPORTUNITIES FUND(1) $143 $443 $ 766 $1,680
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND(1) $143 $680 N/A N/A
SCHRODER ENHANCED INCOME FUND(3) $ 41 $220 $ 414 $ 974
SCHRODER STRATEGIC BOND FUND(4) $117 $537 N/A N/A
SCHRODER TOTAL RETURN FIXED INCOME FUND(2) $ 41 $691 $1,368 $3,177
SCHRODER MUNICIPAL BOND FUND(3) $ 56 $258 $ 478 $1,108
SCHRODER SHORT-TERM MUNICIPAL BOND FUND(3) $ 56 $241 $ 442 $1,021

(1) The Example assumes that you invest on March 31, 2006 for Schroder
Emerging Market Equity Fund, Schroder International Alpha Fund,
Schroder U.S. Opportunities Fund, and Schroder U.S. Small and Mid Cap
Opportunities Fund. If you invest after this date your expenses may be
higher due to fee waivers for these funds expiring one year after such
date.

(2) The Example assumes that you invest on August 30, 2006 for Schroder
International Diversified Value Fund and Schroder Total Return Fixed
Income Fund. If you invest after this date your expenses may be higher
due to fee waivers for these funds expiring one year after such date.

(3) The Example assumes that you invest on February 28, 2006 for Schroder
Enhanced Income Fund, Schroder Municipal Bond Fund and Schroder
Short-Term Municipal Bond Fund. If you invest after this date your
expenses may be higher due to fee waivers for these funds expiring one
year after such date.

(4) The Example assumes that you invest on June 30, 2006 for Schroder
Strategic Bond Fund. If you invest after this date your expenses may
be higher due to a fee waiver for this fund expiring one year after
such date.

-48-

PRINCIPAL RISKS OF INVESTING IN THE FUNDS

A Fund may not achieve its objective. The following provides more detail
about certain of the Funds' principal risks and the circumstances which
could adversely affect the value of a Fund's shares or its investment
return. Unless a strategy or policy described below is specifically
prohibited by a Fund's investment restrictions as set forth in this
Prospectus or under "Investment Restrictions" in the Fund's SAI, or by
applicable law, a Fund may engage in each of the practices described below,
although only the Funds specifically indicated below use the applicable
strategy as a principal investment strategy.

o INTEREST RATE RISK. (SCHRODER ENHANCED INCOME FUND, SCHRODER STRATEGIC
BOND FUND, SCHRODER TOTAL RETURN FIXED INCOME FUND, SCHRODER MUNICIPAL
BOND FUND, AND SCHRODER SHORT-TERM MUNICIPAL BOND FUND). 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, a
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.

o CREDIT RISK. (SCHRODER ENHANCED INCOME FUND, SCHRODER STRATEGIC BOND
FUND, SCHRODER TOTAL RETURN FIXED INCOME FUND, SCHRODER MUNICIPAL BOND
FUND, AND SCHRODER SHORT-TERM MUNICIPAL BOND FUND). 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
a 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.

Schroder Enhanced Income Fund invests in securities of "investment
grade" at the time of purchase, meaning either that a nationally
recognized statistical rating organization (for example, Moody's
Investors 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 Funds' investment adviser has determined
the securities to be of comparable quality. Schroder Strategic Bond
Fund, Schroder Total Return Fixed Income Fund, Schroder Municipal Bond
Fund and Schroder Short-Term Municipal Bond Fund each invests
principally in securities of "investment grade" at the time of
purchase. If a security has been rated by more than one nationally
recognized statistical rating organization the Funds' adviser will
consider the highest rating for the purposes of determining whether
the security is of "investment grade." A 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. A Fund
considers whether a security is of "investment grade" only at the time
of purchase.

Schroder Municipal Bond Fund and Schroder Short-Term Municipal Bond
Fund's adviser expects that a significant portion of the securities in
which these Funds invest will not be rated by a nationally recognized
statistical rating organization, but the credit quality will be
determined by the adviser.

-49-

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.

The value of a municipal bond depends on the ability and willingness
of its issuer to meet its obligations on the security. Changes in the
financial condition of an issuer, changes in specific economic or
political conditions that affect a particular type of security or
issuer, and changes in general economic or political conditions can
affect the credit quality or value of an issuer's securities. The
discontinuance of the taxation supporting a specific project or
specific assets or the inability to collect revenues from the project
or from the assets can negatively affect the municipal bonds backed by
current or anticipated revenues from the project or assets. If the
Internal Revenue Service or a state tax authority determines an issuer
of a municipal security has not complied with applicable tax
requirements, interest from the security could become taxable for
federal or state law purposes and the security's market value could
decline significantly.

o EXTENSION RISK. (SCHRODER ENHANCED INCOME FUND, SCHRODER STRATEGIC
BOND FUND, SCHRODER TOTAL RETURN FIXED INCOME FUND, SCHRODER MUNICIPAL
BOND FUND, AND SCHRODER SHORT-TERM MUNICIPAL BOND FUND). 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.

o HIGH-YIELD/JUNK BONDS RISK. (SCHRODER STRATEGIC BOND FUND AND SCHRODER
TOTAL RETURN FIXED INCOME FUND). Schroder Strategic Bond Fund may
invest up to 40% of its total assets and Schroder Total Return Fixed
Income Fund may invest up to 20% of its total assets in lower-rated
fixed-income securities (commonly known as "junk bonds"), although
normally the Schroder Strategic Bond Fund and the Schroder Total
Return Fixed Income 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 Funds' adviser has determined the
securities to be of comparable quality. The lower ratings of certain
securities held by a 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 a 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, a
Fund at times may be unable to establish the fair value of such
securities. To the extent a Fund invests in securities in the lower
rating categories, the achievement of the Fund's goals is more
dependent on the Fund

-50-

adviser's investment analysis than would be the case if the Fund was
investing in securities in the higher rating categories.

o INFLATION/DEFLATION RISK. (SCHRODER ENHANCED INCOME FUND, SCHRODER
STRATEGIC BOND FUND, SCHRODER TOTAL RETURN FIXED INCOME FUND, SCHRODER
MUNICIPAL BOND FUND, AND SCHRODER SHORT-TERM MUNICIPAL BOND FUND).
Inflation risk is the risk that a Fund's assets or income from a
Fund's investments may be worth less in the future as inflation
decreases the value of money. As inflation increases, the real value
of a 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 a Fund's portfolio.

o MORTGAGE AND ASSET-BACKED SECURITIES RISK. (SCHRODER ENHANCED INCOME
FUND, SCHRODER STRATEGIC BOND FUND, AND SCHRODER TOTAL RETURN FIXED
INCOME FUND). 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. A 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 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 a 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 a Fund to buy or sell. A Fund may gain investment
exposure to mortgage-backed and asset-backed investments by entering

-51-

into agreements with financial institutions to buy the investments at
a fixed price at a future date. A 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.

o LIQUIDITY RISK. (SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER
INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED VALUE
FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S. OPPORTUNITIES
FUND, SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND, AND SCHRODER
STRATEGIC BOND FUND). Liquidity risk exists when particular
investments are difficult to purchase or sell. A Fund's investments in
illiquid securities may reduce the returns of the Fund because it may
be unable to sell the illiquid securities at an advantageous 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.

o DERIVATIVES RISK. (SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER
INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED VALUE
FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S. OPPORTUNITIES
FUND, SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND, SCHRODER
ENHANCED INCOME FUND, SCHRODER STRATEGIC BOND FUND, AND SCHRODER TOTAL
RETURN FIXED INCOME FUND). Derivatives are financial contracts whose
value depends on, or derives from, the value of an underlying asset,
reference rate, or index. A 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 Funds' adviser or 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 a 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 a 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 a Fund's counterparty to perform its obligations under
the transaction. A 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 applicable Fund's SAI
for more information.

o SMALL AND MID CAP COMPANIES RISK. (SCHRODER EMERGING MARKET EQUITY
FUND, SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL
DIVERSIFIED VALUE FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER
U.S. OPPORTUNITIES FUND, AND SCHRODER U.S. SMALL AND MID CAP
OPPORTUNITIES FUND). The Funds may invest in companies that are
smaller and less well-known than larger, more widely held companies.
Micro, small and mid cap companies may offer greater opportunities for
capital appreciation than larger companies, but may also involve
certain special risks. They are more likely than larger companies to
have limited product lines, markets or financial resources, or to
depend on a small, inexperienced management

-52-

group. Securities of smaller companies may trade less frequently and
in lesser volume than more widely held securities and their values may
fluctuate more sharply than other securities. They may also trade in
the over-the-counter market or on a regional exchange, or may
otherwise have limited liquidity. These securities may therefore be
more vulnerable to adverse developments than securities of larger
companies, and the Funds may have difficulty establishing or closing
out their securities positions in smaller companies at prevailing
market prices. Also, there may be less publicly available information
about smaller companies or less market interest in their securities as
compared to larger companies, and it may take longer for the prices of
the securities to reflect the full value of their issuers' earnings
potential or assets.

o EQUITY SECURITIES RISK. (SCHRODER EMERGING MARKET EQUITY FUND,
SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED
VALUE FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S.
OPPORTUNITIES FUND, AND SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES
FUND). The principal risks of investing in the Funds include the risk
that the value of the equity securities in the portfolio will fall, or
will not appreciate as anticipated by the Funds' adviser or
sub-adviser, due to factors that adversely affect equities markets
generally or particular companies in the portfolio. Common stocks
represent an equity or ownership interest in an issuer and are subject
to issuer and market risks that may cause their prices to fluctuate
over time. Preferred stocks represent an equity or ownership interest
in an issuer that typically pays dividends at a specified rate and
that has priority over common stock in the payment of dividends and in
liquidation. If interest rates rise, the fixed dividend on preferred
stocks may be less attractive, causing the price of preferred stocks
to decline. Different types of investments tend to shift into and out
of favor with investors depending on changes in market and economic
conditions.

o CONVERTIBLE SECURITIES RISK. (SCHRODER EMERGING MARKET EQUITY FUND,
SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED
VALUE FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S.
OPPORTUNITIES FUND, SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES
FUND, SCHRODER STRATEGIC BOND FUND, AND SCHRODER TOTAL RETURN FIXED
INCOME FUND). Schroder Strategic Bond Fund and Schroder Total Return
Fixed Income 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. Schroder Emerging Market Equity Fund, Schroder
International Alpha Fund, Schroder International Diversified Value
Fund, Schroder North American Equity Fund, Schroder U.S. Opportunities
Fund, and Schroder U.S. Small and Mid Cap Opportunities Fund may
invest in preferred stocks that are convertible into common stocks,
and so subject to the risks of investments in both preferred and
common stocks. 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.

-53-

purchase equity securities. The price, performance and liquidity of
such warrants are typically linked to the underlying stock. Schroder
Strategic Bond 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.

o INITIAL PUBLIC OFFERINGS (IPOS) RISK. (SCHRODER EMERGING MARKET EQUITY
FUND, SCHRODER U.S. OPPORTUNITIES FUND, AND SCHRODER U.S. SMALL AND
MID CAP OPPORTUNITIES FUND). The Funds may also purchase securities of
companies in initial public offerings (IPOs), which frequently are
smaller companies. Such securities have no trading history, and
information about these companies may be available for very limited
periods. The prices of securities sold in IPOs also can be highly
volatile. Under certain market conditions, very few companies, if any,
may determine to make initial public offerings of their securities. At
any particular time or from time to time the Funds may not be able to
invest in securities issued in IPOs or invest to the extent desired,
because, for example, only a small portion (if any) of the securities
being offered in an IPO may be made available to the Funds. The
investment performance of the Funds during periods when they are
unable to invest significantly or at all in initial public offerings
may be lower than during periods when the Funds are able to do so.

o FOREIGN INVESTMENT RISK. (SCHRODER EMERGING MARKET EQUITY FUND,
SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED
VALUE FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER ENHANCED
INCOME FUND, SCHRODER STRATEGIC BOND FUND, AND SCHRODER TOTAL RETURN
FIXED INCOME FUND). Schroder Emerging Market Equity Fund, Schroder
International Alpha Fund, Schroder International Diversified Value
Fund, Schroder Enhanced Income Fund, Schroder Strategic Bond Fund, and
Schroder Total Return Fixed Income Fund may invest in foreign
securities. Schroder North American Equity Fund may invest in
securities of Canadian companies and in companies located in other
countries in North America. 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 a 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 a Fund's assets held abroad) and expenses not
present in the settlement of domestic investments.

Schroder Emerging Market Equity Fund may invest in Chinese companies.
While companies in China may be subject to limitations on their
business relationships under Chinese law, these laws may not be
consistent with certain political and security concerns of the United
States. As a result, Chinese companies may have material direct or
indirect business relationships with governments that are considered
state sponsors of terrorism by the United States government, or
governments that otherwise have policies in conflict with the U.S.
government. Investments in such companies

-54-

may subject the Schroder Emerging Market Equity Fund to the risk that
these companies' reputation and price in the market will be adversely
affected.

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, a
Fund may have limited recourse available to it. The laws of some
foreign countries may limit a Fund's ability to invest in securities
of certain issuers located in those countries.

Special tax considerations apply to a Fund's investments in foreign
securities. In determining whether to invest a Fund's assets in debt
securities of foreign issuers, the Fund's adviser or 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 a 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 a Fund will reduce its
income available for distribution to shareholders. In certain
circumstances, a 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, a 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.

o FOREIGN CURRENCIES RISK. (SCHRODER EMERGING MARKET EQUITY FUND,
SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED
VALUE FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER STRATEGIC
BOND FUND, AND SCHRODER TOTAL RETURN FIXED INCOME FUND). Since foreign
securities normally are denominated and traded in foreign currencies,
the value of a 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. A Fund may, but is not required
to, buy or sell foreign securities and options and futures contracts
on foreign securities for hedging purposes in connection with its
foreign investments.

If a 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 a 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 a Fund's income may be received or

-55-

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 a 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. A 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.

o EMERGING MARKET SECURITIES RISK. (SCHRODER EMERGING MARKET EQUITY
FUND, SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL
DIVERSIFIED VALUE FUND, SCHRODER STRATEGIC BOND FUND, AND SCHRODER
TOTAL RETURN FIXED INCOME FUND). 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 a 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 a 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 a 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.

-56-

Fund invests principally in equity securities of North American
companies, and the Schroder U.S. Opportunities Fund and Schroder U.S.
Small and Mid Cap Opportunities Fund invest principally in equity
securities of U.S. companies, their performance may at times be worse
than the performance of other mutual funds that invest more broadly.

o ISSUER FOCUS RISK. (SCHRODER INTERNATIONAL ALPHA FUND AND SCHRODER
U.S. OPPORTUNITIES FUND). The Funds, and in particular the Schroder
International Alpha Fund, may invest in a smaller number of companies
than comprise the portfolios of other similar mutual funds. When a
Fund invests in a relatively small number of issuers, changes in the
value of one or more portfolio securities may have a greater effect on
the Fund than if the Fund invested more broadly.

o DEPOSITARY RECEIPTS RISK. (SCHRODER EMERGING MARKET EQUITY FUND). A
Fund may invest in ADRs, as well as GDRs, EDRs or other similar
securities representing ownership of foreign securities. Depositary
Receipts generally evidence an ownership interest in a corresponding
foreign security on deposit with a financial institution. Investments
in non-U.S. issuers through Depository Receipts and similar
instruments may involve certain risks not applicable to investing in
U.S. issuers, including changes in currency rates, application of
local tax laws, changes in governmental administration or economic or
monetary policy or changed circumstances in dealings between nations.
Costs may be incurred in connection with conversions between various
currencies. A Fund may invest in both sponsored and unsponsored
Depositary Receipts. Unsponsored Depositary Receipts are organized
independently and without the cooperation of the issuer of the
underlying securities. As a result, available information concerning
the issuers may not be as current for sponsored Depositary Receipts
and the prices of unsponsored Depositary Receipts may be more volatile
than if such instruments were sponsored by the issuer.

o INVESTMENTS IN POOLED VEHICLES RISK. (SCHRODER EMERGING MARKET EQUITY
FUND, SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL
DIVERSIFIED VALUE FUND, AND SCHRODER NORTH AMERICAN EQUITY FUND). A
Fund may invest in other investment companies or pooled vehicles,
including closed-end funds, trusts, and ETFs, that are advised by the
Fund's sub-adviser or its affiliates or by unaffiliated parties, to
the extent permitted by applicable law. When investing in a closed-end
investment company, a Fund may pay a premium above such investment
company's net asset value per share and when the shares are sold, the
price received by the Fund may be at a discount to net asset value. As
a shareholder in an investment company or pooled vehicle, a Fund, and
indirectly that Fund's shareholders, would bear its ratable share of
the investment company's expenses, including advisory and
administrative fees, and would at the same time continue to pay its
own fees and expenses. ETFs issue redeemable securities, but because
these securities may only be redeemed in kind in significant amounts
investors generally buy and sell shares in transactions on securities
exchanges.

-57-

such as poor performance by the manager of the REIT, adverse changes
to the tax laws or failure by the REIT to qualify for tax-free
pass-through of income under the Code. In addition, some REITs have
limited diversification because they invest in a limited number of
properties, a narrow geographic area, or a single type of property.
Also, the organizational documents of a REIT may contain provisions
that make changes in control of the REIT difficult and time-consuming.
As a shareholder in a REIT a Fund, and indirectly the Fund's
shareholders, would bear its ratable share of the REIT's expenses and
would at the same time continue to pay its own fees and expenses.

o OVER-THE-COUNTER RISK. (SCHRODER U.S. OPPORTUNITIES FUND AND SCHRODER
U.S. SMALL AND MID CAP OPPORTUNITIES FUND). Securities traded in
over-the-counter markets may trade in smaller volumes, and their
prices may be more volatile, than securities principally traded on
securities exchanges. Such securities may be less liquid than more
widely traded securities. In addition, the prices of such securities
may include an undisclosed dealer markup, which a Fund pays as part of
the purchase price.

o EQUITY MARKETS RISK. (SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER
INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED VALUE
FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S. OPPORTUNITIES
FUND, AND SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND).
Although stocks may outperform other asset classes over the long term,
their prices tend to fluctuate more dramatically over the shorter
term. These movements may result from factors affecting individual
companies, or from broader influences like changes in interest rates,
market conditions, investor confidence or announcements of economic,
political or financial information. While potentially offering greater
opportunities for capital growth than larger, more established
companies, the stocks of smaller companies may be particularly
volatile, especially during periods of economic uncertainty. These
companies may face less certain growth prospects, or depend heavily on
a limited line of products and services or the efforts of a small
number of key management personnel.

o MANAGEMENT RISK. (ALL FUNDS). Because the Funds are actively managed,
each Fund's investment return depends on the ability of its adviser or
sub-adviser to manage its portfolio successfully. A Fund's adviser or
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.

-58-

are generally taxed to shareholders at ordinary income rates). The
trading costs and tax effects associated with portfolio turnover may
adversely affect a Fund's performance. During periods when a Fund
experiences high portfolio turnover rates, these effects are likely to
be more pronounced. The Funds' adviser currently expects that the
portfolio turnover rate for the current fiscal year will be greater
than 400% for Schroder Strategic Bond Fund, will be approximately 400%
for each of Schroder Enhanced Income Fund and Schroder Total Return
Fixed Income Fund, will be approximately 160% for Schroder North
American Equity Fund, will be approximately 100% for Schroder Emerging
Market Equity Fund, and will not exceed 100% for each of Schroder
International Alpha Fund, Schroder U.S. Opportunities Fund, Schroder
U.S. Small and Mid Cap Opportunities Fund, Schroder Municipal Bond
Fund and Schroder Short-Term Municipal Bond Fund. Consult your tax
advisor regarding a Fund's portfolio turnover rate on your
investments.

o MUNICIPAL BONDS RISK. (SCHRODER MUNICIPAL BOND FUND AND SCHRODER
SHORT-TERM MUNICIPAL BOND FUND). Municipal bonds are investments of
any maturity issued by states, public authorities or political
subdivisions to raise money for public purposes; they include, for
example, general obligations of a state or other government entity
supported by its taxing powers to acquire and construct public
facilities or to provide temporary financing in anticipation of the
receipt of taxes and other revenue. They also include obligations of
states, public authorities or political subdivisions to finance
privately owned or operated facilities or public facilities financed
solely by enterprise revenues. Changes in law or adverse
determinations by the Internal Revenue Service or a state tax
authority could make the income from some of these obligations
taxable.

General obligations. These are backed by the issuer's authority to
levy taxes and are considered an obligation of the issuer. They are
payable from the issuer's general unrestricted revenues, although
payment may depend upon government appropriation or aid from other
governments. These investments may be vulnerable to legal limits on a
government's power to raise revenue or increase taxes, as well as
economic or other developments that can reduce revenues.

Special revenue obligations. These are payable from revenue earned by
a particular project or other revenue source. They include private
activity bonds for manufacturing facilities, certain transportation
facilities, and publicly-owned utilities, and non-profit organizations
such as private colleges, hospitals and museums, and other facilities.
Investors can look only to the revenue generated by the project or the
private company owning or operating the project rather than the credit
of the state or local government authority issuing the bonds. Revenue
obligations are often subject to greater credit risk than general
obligations debt because they do not rely on broad taxing powers.

Municipal bonds may be insured or guaranteed by public or private
guarantors or insurers. The credit standing of such a bond would
likely depend to a substantial extent on the ability and willingness
of the guarantor or insurer to meet its obligations.

The amount of public information available about the municipal bonds
in a Fund's portfolio is generally less than that available for
corporate equities or bonds, and the investment performance of a Fund
holding such securities may therefore be more dependent on the
analytical abilities of the Fund's adviser.

Interest income from private activity bonds may be subject to federal
AMT for individuals. Corporate shareholders will be required to
include all tax-exempt interest

-59-

dividends in determining their federal AMT. The Funds may each invest
as much as 100% of their net assets in investments, the income from
which may result in liability for federal AMT both for individual and
corporate shareholders. For more information, including possible
state, local and other taxes, contact your tax advisor.

At times, a portion of a Fund's assets may be invested in an issue of
which the Fund, by itself or together with other funds and accounts
managed by the Funds' adviser or its affiliates, holds all or a major
portion. It is possible that, under adverse market or economic
conditions or in the event of adverse changes in the financial
condition of the issuer, a Fund could find it more difficult to sell
these securities when the Funds' adviser believes it advisable to do
so or may be able to sell the securities only at prices lower than if
they were more widely held. Under these circumstances, it may also be
more difficult to determine the fair value of such securities for
purposes of computing a Fund's net asset value. In the event of a
default by an issuer of such securities, a Fund may be required to
incur expenses in enforcing its rights, and any income received by the
Fund in respect of its investment might not be tax-exempt.

o TAXABLE MUNICIPAL SECURITIES RISK. (SCHRODER MUNICIPAL BOND FUND AND
SCHRODER SHORT-TERM MUNICIPAL BOND FUND). The Funds may invest in
taxable municipal securities. These would typically include securities
issued by states, public authorities, or political subdivisions but
which fail to meet the requirements of the federal tax code necessary
so that interest payments made on the securities will be exempt from
federal income tax. These may include, for example, securities issued
to finance unfunded pension liabilities or issued to finance
governmental facilities where the nature or management of the facility
is such that the securities may not be issued on a tax-exempt basis.
The Funds may also hold a portion of their assets in securities issued
by the U.S. Treasury and they may hold taxable money market securities
or cash equivalents for liquidity or pending investment in tax-exempt
securities.

o VOLATILITY OF THE MUNICIPAL BOND MARKET RISK. (SCHRODER MUNICIPAL BOND
FUND AND SCHRODER SHORT-TERM MUNICIPAL BOND FUND). The values of
municipal bonds may rise or fall in response to a number of factors
affecting their issuers specifically or the municipal bond market
generally. For example, political or fiscal events affecting the
issuers of municipal bonds, as well as uncertainties in the municipal
bond market generally related to taxation, legislative changes, or the
enforceability of rights of municipal bond holders, can significantly
affect the values of municipal bonds. Because many municipal bonds are
issued to finance similar projects, such as those relating to
education, health care, housing, transportation, and utilities,
conditions in those sectors can affect the overall municipal bond
market.

o STATE AND ISSUER RISK. (SCHRODER MUNICIPAL BOND FUND AND SCHRODER
SHORT-TERM MUNICIPAL BOND FUND). A Fund may invest without limitation
in the debt of issuers, including conduit issuers, located in the same
state. Investing in bonds issued by a state, state agencies, or
political subdivisions in the same state may make a Fund more
vulnerable to that state's economy and to issues affecting its
municipal bond issuers, such as possible restrictions on additional
borrowings by issuers in that state or economic or legal limitations
on an issuer's ability to meet payment obligations. A Fund may also
invest more than 25% of its assets in a sector of the municipal bond
market, including education, health care, housing, transportation or
utilities sectors. Geographic or sector concentration may cause the
value of a Fund's shares to change more than the values of shares of
funds that invest in a greater variety of investments.

-60-

Municipal bonds backed by revenues from facilities in a particular
sector are subject to the risks of investment in that sector
generally. For example, investments in many of the sectors in which a
Fund may invest are subject to the risks of changes in government
regulation, fluctuations in revenues, including federal or state
assistance, competition, changes in labor relations and costs, and
difficulties in raising additional capital under a variety of
circumstances. Revenue bonds issued in the education sector can be
significantly affected also by levels of endowment, charitable giving,
costs of attendance, increases or decreases in governmental assistance
or other revenues, and, in the case of public schools, limits on the
ability of governmental entities to increase taxes or generate other
revenues, including fees, to pay for educational expenses. Investments
in a health care sector are subject to changes in patient income, the
availability of public or private insurance reimbursement for
procedures and drug costs, the timing of such payments, the quality of
management and the availability of qualified professional staff, and
demographics. The housing sector can be significantly affected by
changes in interest rates for single-family home buyers, governmental
regulations imposed on developers of low and moderate cost
multi-family units, as well as costs of land, construction and
maintenance costs, neighborhood opposition to mixed-income
developments, and the level of government incentives, including
subsidies and tax credits. Investments in a transportation sector can
be affected significantly by the cost of developing, maintaining,
updating and replacing infrastructure and other hard assets, levels of
federal and state assistance, quality of service, and the ability to
raise fees without losing ridership. Investments in a utilities sector
can be significantly affected by the ability to locate a reliable and
reasonable source of the resource to be provided, infrastructure
development and maintenance, the ability to pass on costs of services
and resources to customers, mandatory or voluntary natural resource
conservation efforts, alternatives by customers to the use of public
utilities, and the effects of deregulation by many states. The
foregoing factors are illustrative in nature. This discussion of the
risk of concentration in sectors is not, and is not intended to be,
comprehensive or exhaustive.

A Fund may at times invest a substantial portion of its assets in
securities of a particular issue, and to that extent, the Fund's
investment performance and net asset value will be adversely affected
by decreases in the value of such issue more than if such Fund
invested in a larger range of securities.

o U.S. GOVERNMENT SECURITIES RISK. (SCHRODER ENHANCED INCOME FUND,
SCHRODER STRATEGIC BOND FUND, SCHRODER TOTAL RETURN FIXED INCOME FUND,
SCHRODER MUNICIPAL BOND FUND, AND SCHRODER SHORT-TERM MUNICIPAL BOND
FUND). 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

-61-

above under "Extension Risk"), and the risk that the value of the
securities will fluctuate in response to political, market, or
economic developments.

o NON-DIVERSIFICATION RISK. (SCHRODER STRATEGIC BOND FUND). Schroder
Strategic Bond 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.

-62-

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

In addition to the principal investment strategies described in the
Principal Investment Strategies section above, each 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 Funds' adviser or sub-adviser might use in managing the Funds. As
in any mutual fund, investors must rely on the professional investment
judgment and skill of the Funds' adviser and sub-adviser.

o SHORT SALES. A Fund may sell a security short when the Fund's adviser
or sub-adviser anticipates that the price of the security will
decline. A 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.

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

o SECURITIES LOANS AND REPURCHASE AGREEMENTS. A 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 a Fund if the other party should
default on its obligation and the Fund is delayed or prevented from
recovering the collateral. A 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.

o TEMPORARY DEFENSIVE STRATEGIES. At times, the Funds' adviser or
sub-adviser may judge that conditions in the securities markets make
pursuing a Fund's investment strategy inconsistent with the best
interests of its shareholders. At such times, the Fund's adviser or
sub-adviser may, but is not required to, take temporary "defensive"
positions that are inconsistent with a 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
adviser or sub-adviser considers consistent with such defensive
strategies. It is impossible to predict when, or for how long, a Fund
would use these alternate strategies. One risk of taking such
temporary defensive positions is that the Fund may not achieve its
investment objective.

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

o OTHER INVESTMENTS. A 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 Funds.

o SECURITIES IN DEFAULT. Schroder Strategic Bond 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 Schroder Strategic
Bond 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.

o PERCENTAGE INVESTMENT LIMITATIONS. Unless otherwise noted, all
percentage limitations on Fund investments will apply at the time of
investment, including the requirements that: Schroder Emerging Market
Equity Fund normally invest at least 80% of its net assets in equity
securities of companies the Fund's sub-adviser considers to be
"emerging market" issuers; Schroder International Alpha Fund normally
invest at least 65% of its total assets in equity securities of
companies the Fund's adviser considers to be located outside of the
United States; Schroder International Diversified Value Fund normally
invest at least 65% of its assets in equity securities of companies
located in countries outside of the United States; Schroder North
American Equity Fund normally invest at least 80% of its net assets in
equity securities of companies organized and principally traded in, or
with their principal places of business and principally traded in,
North America; Schroder U.S. Opportunities Fund normally invest at
least 80% of its net assets in securities of companies the Fund's
adviser considers to be located in the United States; Schroder U.S.
Small and Mid Cap Opportunities Fund normally invest at least 80% of
its net assets in companies considered by the Fund's adviser at the
time to be small or mid cap companies located in the United States;
Schroder Enhanced Income Fund normally invest at least 80% of its net
assets in income-producing obligations; Schroder Strategic Bond Fund
normally invest at least 80% of its net assets in debt securities;
Schroder Total Return Fixed Income Fund normally invest at least 80%
of its net assets in fixed income obligations; Schroder Municipal Bond
Fund normally invest at least 80% of its net assets in municipal
bonds; and Schroder Short-Term Municipal Bond Fund normally invest at
least 80% of its net assets in municipal bonds and at least 80% of its
net assets in investments the income from which is exempt from federal
income tax, but which may be subject to federal alternative minimum
tax. An investment by a Fund would not be considered to violate these
limitations unless an excess or deficiency were to occur or exist
immediately after and as a result of an

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investment. References in the discussion of the Funds' investment
policies above to 80% of a 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 a Fund for investment purposes.

o PRIVATE PLACEMENTS AND RESTRICTED SECURITIES. A 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, a 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 a Fund's net
asset value. A 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 a Fund is not able to
sell such security at the price that such persons anticipate, the
Fund's net asset value will decrease.

-65-

--------------------------------------------------------------------------------
MANAGEMENT OF THE FUNDS

Each Trust is governed by a Board of Trustees. The Board of Trustees of
each Trust has retained Schroders to serve as each Fund's adviser and to
manage the investments of each Fund. Subject to the control of the
applicable Board of Trustees, Schroders also manages each 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 Schroder Emerging Market Equity Fund, Schroder International
Alpha Fund, Schroder International Diversified Value Fund, Schroder North
American Equity Fund, and Schroder Strategic Bond Fund.

Schroders (itself and its predecessors) has been an investment manager
since 1962, and serves as investment adviser to the Funds 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 $223.2 billion under management as of March 31,
2006. 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.

o MANAGEMENT FEES. For the fiscal year ended October 31, 2005, each of
the following Funds paid aggregate management fees, net of applicable
expense limitations and/or fee waivers, for investment management and
administration services to Schroders at the following annual rates
(based on each Fund's average daily net assets): Schroder North
American Equity Fund: 0.25%; Schroder U.S. Opportunities Fund: 0.73%
(effective May 1, 2006 the Fund's management fee is 1.00%); Schroder
Municipal Bond Fund: 0.02%; and Schroder Short-Term Municipal Bond
Fund: 0.10%. Schroder International Alpha Fund did not pay fees during
the fiscal year ended October 31, 2005 due to an expense limitation
and/or fee waiver in effect during that period (effective April 1,
2006 the Fund's management fee is 0.975% of the Fund's average daily
net assets). Each of the following Funds expect to pay management fees
for investment management services to Schroders at the following
annual rates (based on each Fund's average daily net assets): Schroder
Emerging Market Equity Fund: 1.00%; Schroder International
Diversified Value Fund: 1.00%; Schroder U.S. Small and Mid Cap
Opportunities Fund: 1.00%; Schroder Enhanced Income Fund: 0.25%;
Schroder Strategic Bond Fund: 0.75%; and Schroder Total Return Fixed
Income Fund: 0.25%. 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 each of Schroder
Emerging Market Equity Fund, Schroder International Alpha Fund,
Schroder International Diversified Value Fund, Schroder North American
Equity Fund, and Schroder Strategic Bond Fund. A discussion regarding
the basis for the Trustees' approval of the investment management
agreements for Schroder International Alpha Fund, Schroder North
American Equity Fund, Schroder U.S. Opportunities Fund, Schroder Total
Return Fixed Income Fund, Schroder Municipal Bond Fund, and Schroder
Short-Term Municipal Bond Fund is available in the Funds' annual
report to shareholders for the fiscal year ended October 31, 2005.

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o EXPENSE LIMITATIONS AND WAIVERS. In order to limit the expenses of
certain Funds' Investor Shares, 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 February 28, 2007 for Schroder Enhanced Income
Fund, Schroder Municipal Bond Fund, and Schroder Short-Term Municipal
Bond Fund, March 31, 2007 for Schroder International Alpha Fund,
Schroder Emerging Market Equity Fund, Schroder U.S. Opportunities
Fund, and Schroder U.S. Small and Mid Cap Opportunities Fund, and June
30, 2007 for the Schroder Strategic Bond Fund, to the extent that the
Total Annual Fund Operating Expenses of each Fund allocable to its
Investor Shares exceed the following annual rates (based on the
average daily net assets attributable to the Fund's Investor Shares):
Schroder Emerging Market Equity Fund -- 1.75%; Schroder International
Alpha Fund -- 1.25%; Schroder U.S. Opportunities Fund -- 1.70%;
Schroder U.S. Small and Mid Cap Opportunities Fund -- 1.40%; Schroder
Enhanced Income Fund -- 0.40%; Schroder Strategic Bond Fund -- 1.15%;
Schroder Municipal Bond Fund -- 0.55%; and Schroder Short-Term
Municipal Bond Fund -- 0.55%. In order to limit the expenses of each
of Schroder International Diversified Value Fund's and Schroder Total
Return Fixed Income Fund's Investor Shares, Schroders has
contractually agreed to reduce its compensation (and, if necessary, to
pay other Fund expenses) until August 30, 2007 to the extent that the
Total Annual Fund Operating Expenses of a Fund (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) allocable to
its Investor Shares exceed the following annual rates (based on the
average daily net assets attributable to each Fund's Investor shares):
Schroder International Diversified Value Fund -- 1.25%; and Schroder
Total Return Fixed Income Fund -- 0.40%.

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o PORTFOLIO MANAGEMENT. The following portfolio managers at Schroders
and SIMNA Ltd. have primary responsibility for making investment
decisions for the respective Funds. For each of Schroder International
Diversified Value Fund and Schroder North American Equity Fund, all
investment decisions are made by a team of investment professionals at
SIMNA Ltd. with the portfolio managers listed in the table below for
that Fund having primary responsibility for making investment
decisions for the Fund. Each portfolio manager's recent professional
experience is also shown. Each Fund's respective 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 Emerging James Gotto Portfolio Manager Inception Mr. Gotto is a Portfolio
Market Equity Fund (March 31, 2006) Manager of SIMNA Ltd. He
has been an employee of
SIMNA Ltd. since 1991.

Schroder Emerging Waj Hashmi, CFA Portfolio Manager Inception Mr. Hashmi is a Portfolio
Market Equity Fund (March 31, 2006) Manager of SIMNA Ltd. He
has been an employee of
SIMNA Ltd. since 2000.

Schroder Emerging Robert Davy Portfolio Manager Inception Mr. Davy is a Portfolio
Market Equity Fund (March 31, 2006) Manager of SIMNA Ltd. He
has been an employee of
SIMNA Ltd. since 1986.

Schroder Emerging Allan Conway Head of Inception Mr. Conway is Head of
Market Equity Fund Emerging (March 31, 2006) Emerging Markets Equities at
Markets Equities SIMNA Ltd. He has been an
employee of SIMNA Ltd.
since 2004. Formerly, Head
of Global Emerging Markets,
West LB Asset Management
and Chief Executive Officer
of WestAM (UK) Ltd.

Schroder International Virginie Lead Portfolio March 2005 Ms. Maisonneuve is a
Alpha Fund Maisonneuve, Manager Director of Schroders. She
CFA has been an employee of
SIMNA Ltd. since 2004. She
is head of Schroders'
Europe, Australasia, Far East
(EAFE) Team. Formerly,
Co-Chief Investment Officer
and Director, Clay Finlay.

Schroder International Matthew Dobbs Portfolio Manager 2004 Mr. Dobbs manages Pacific
Alpha Fund Basin and EAFE equities and
is responsible for
MultiRegional Small Cap. He
has been an employee of
Schroders since 1981.

-68-

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

Schroder International Justin Lead Portfolio Inception (August Mr. Abercrombie is the Lead
Diversified Value Fund Abercrombie Manager and 30, 2006) Portfolio Manager and Head
and Schroder North Head of (Schroder of QEP, SIMNA Ltd. He has
American Equity Fund Quantitative International been an employee of
Equity Products Diversified Value Schroders since 1996.
("QEP") Fund) Formerly, founding member
of QEP, SIMNA Ltd.
Inception
(September
2003) (Schroder
North American
Equity Fund)

Schroder International John Marsland, Senior Portfolio Inception (August Mr. Marsland is a Senior
Diversified Value Fund CFA Manager and 30, 2006) Portfolio Manager and
and Schroder North Quantitative (Schroder Quantitative Analyst, SIMNA
American Equity Fund Analyst International Ltd. He has been an
Diversified Value employee of SIMNA Ltd.
Fund) since May 2006. Formerly,
Quantitative Fund Manager,
May 2006 WMG Advisors LLP from
(Schroder North January 2005 to April 2006,
American Equity Head of Risk Advisory,
Fund) Commerzbank Securities
from 2000 to November
2004.

Schroder International David Philpotts Senior Inception (August Mr. Philpotts is Senior
Diversified Value Fund Quantitative 30, 2006) Quantitative Analyst and
and Schroder North Analyst and (Schroder Portfolio Manager, SIMNA
American Equity Fund Portfolio Manager International Ltd. He has been an
Diversified Value employee of SIMNA Ltd.
Fund) since 1999. Formerly, Chief
Investment Officer, Quaestor
March 2004 Investment Management
(Schroder North from 2001 to March 2004,
American Equity Deputy Head of QEP, SIMNA
Fund) Ltd. from 1999 to 2004.

Schroder International Stephen Senior Inception (August Mr. Langford is Senior
Diversified Value Fund Langford Quantitative 30, 2006) Quantitative Analyst and
and Schroder North Analyst and (Schroder Portfolio Manager, SIMNA
American Equity Fund Portfolio Manager International Ltd. He has been an
Diversified Value employee of SIMNA Ltd.
Fund) since 2003. Formerly, Senior
Research Manager, Quaestor
November 2003 Investment Management
(Schroder North from August 1999 to
American Equity October 2003.
Fund)

-69-

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

Schroder International Arnaud Amsellem Senior Inception (August Mr. Amsellem is Senior
Diversified Value Fund Quantitative 30, 2006) Quantitative Analyst and
and Schroder North Analyst and (Schroder Portfolio Manager, SIMNA
American Equity Fund Portfolio Manager International Ltd. He has been an
Diversified Value employee of SIMNA Ltd.
Fund) since 2005. Formerly, Senior
Portfolio Manager, State
July 2005 Street Hedge Fund Group,
(Schroder North Portfolio Manager, State
American Equity Street Active Team from
Fund) June 2000 to June 2005.

Schroder International Kristian Brock Quantitative Inception (August Mr. Brock is a Quantitative
Diversified Value Fund Analyst and 30, 2006) Analyst and Portfolio
and Schroder North Portfolio Manager (Schroder Manager, SIMNA Ltd. He has
American Equity Fund International been an employee of
Diversified Value Schroders since 2001.
Fund)

Inception
(September
2003) (Schroder
North American
Equity Fund)

Schroder International James Larkman Quantitative Inception (August Mr. Larkman is a Quantitative
Diversified Value Fund Analyst and 30, 2006) Analyst and Portfolio
and Schroder North Portfolio Manager (Schroder Manager, SIMNA Ltd. He has
American Equity Fund International been an employee of
Diversified Value Schroders since 2003. Prior
Fund) to joining Schroders he was
a student attending the
October 2005 Master's program at the
(Schroder North University of Reading from
American Equity July 2003 to July 2004. Prior
Fund) to July 2003, he attended the
University of Bath and
participated in an internship
with Schroders.

Schroder U.S. Jenny B. Jones Lead Portfolio 2003 (Schroder Ms. Jones is an Executive
Opportunities Fund and Manager U.S. Vice President of Schroders.
Schroder U.S. Small Opportunities She has been an employee
and Mid Cap Fund) of Schroders since 2003.
Opportunities Fund Inception Formerly, portfolio manager
and Executive Director,
(March 31, 2006) Morgan Stanley Investment
(Schroder U.S. Advisors Inc.
Small and Mid
Cap
Opportunities
Fund)

Schroder Enhanced Steven S. Lear, Lead Portfolio Inception Mr. Lear is an Executive Vice
Income Fund and CFA Manager (December 2004) President of Schroders. He
Schroder Total Return for each Fund has been an employee of
Fixed Income Fund Schroders since June 1998.

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

Schroder Enhanced Wesley A. Portfolio Manager Inception Mr. Sparks is a Senior Vice
Income Fund and Sparks, CFA (December 2004) President of Schroders. He
Schroder Total Return for each Fund has been an employee of
Fixed Income Fund Schroders since
December 2000. Formerly,
portfolio manager at Aeltus
Investment Management.

Schroder Enhanced Gregg T. Moore, Portfolio Manager Inception Mr. Moore is a Vice President
Income Fund and CFA (December 2004) of Schroders and has been
Schroder Total Return for each Fund an employee of Schroders
Fixed Income Fund since June 2001. Formerly,
quantitative analyst at Aeltus
Investment Management.

Schroder Enhanced Matthew J. Portfolio Manager Inception Mr. Murphy is a Vice
Income Fund and Murphy (December 2004) President of Schroders. He
Schroder Total Return for each Fund has been an employee of
Fixed Income Fund Schroders since July 2004.
Formerly, Managing Director
at MONY Capital Management
from February 2002 to
July 2004.

Schroder Strategic Robert Michele, Global Head of Inception (June Mr. Michele is Global Head of
Bond Fund CFA Fixed Income 30, 2006) Fixed Income of Schroders.
He has been an employee of
Schroders since 1998.

Schroder Strategic Louise Davies Portfolio Manager Inception (June Ms. Davies is a Portfolio
Bond Fund 30, 2006) Manager of Schroders. She
has been an employee of
Schroders since 1999.

Schroder Municipal David Baldt, CFA Portfolio Manager Inception Mr. Baldt is an Executive
Bond Fund and (December 2003) Vice President of Schroders.
Schroder Short-Term for each Fund He has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly, Managing Director
of Deutsche Asset
Management (formerly
Morgan Grenfell).

Schroder Municipal Daniel Scholl Portfolio Manager Inception Mr. Scholl is a Senior Vice
Bond Fund and (December 2003) President of Schroders. He
Schroder Short-Term for each Fund has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly a Director and
Portfolio Manager of
Deutsche Asset Management
(formerly Morgan Grenfell).

-71-

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

Schroder Municipal Ted Manges Portfolio Manager Inception Mr. Manges is a First Vice
Bond Fund and (December 2003) President of Schroders. He
Schroder Short-Term for each Fund has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly, Vice President of
Deutsche Asset Management
from 1999 to 2003, and
Manager of Trading and
Sales, Commerce Capital
Markets from 1995 to 1999.

-72-

--------------------------------------------------------------------------------
HOW THE FUNDS' SHARES ARE PRICED

Each 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. Each 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 Trusts expect 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 Funds' 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 sale 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 shall be 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. Certain Funds 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 Funds 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. Schroder Emerging Market
Equity Fund, Schroder International Alpha Fund, Schroder International
Diversified Value Fund, Schroder Strategic Bond Fund, and Schroder Total
Return Fixed Income 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. 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 a Fund's Investor Shares may
differ from that of its Advisor Shares due to differences in the expenses
of Investor Shares and Advisor Shares.

-73-

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

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

You may purchase Investor Shares of each 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.

Each Fund sells its Investor Shares at their net asset value next
determined after the applicable 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 applicable Fund's transfer agent or the Fund). In order
for you to receive a 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). Each Trust reserves the right to reject any order to purchase
Investor Shares of any of its Funds. Each 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 a Fund are as follows:

INITIAL INVESTMENT ADDITIONAL INVESTMENTS
------------------ ----------------------
$250,000 $1,000

The applicable 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.

Investor Shares of the Funds 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 Funds 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 Funds do not issue share certificates.

Each Trust may suspend the offering of Investor Shares of its Funds for any
period of time. Each Trust may change any investment minimum from time to
time.

-74-

Purchases by check. You may purchase Investor Shares of a 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 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 30 Dan Road
Canton, MA 02021

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 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.

Brokers and other financial institutions. You may also buy and exchange
Investor Shares of the Funds 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 Funds.
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 Funds. Such brokers or financial
institutions may designate other

-75-

intermediaries to accept purchase orders on behalf of the Funds. For
purposes of pricing, a 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 Trusts' 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 a Fund, in addition to any fees the Fund charges.

Purchases in kind. Investors may purchase Investor Shares of a 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 a 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 Funds value securities accepted
by Schroders in the same manner as are the Funds' portfolio securities as
of the time of the next determination of a Fund's net asset value. Although
the Funds seek to determine the fair value of securities contributed to a
Fund, any valuation that does not reflect fair value may dilute the
interests of the purchasing shareholder or the other shareholders of the
Funds. All rights reflected in the market price of accepted securities at
the time of valuation become the property of the Funds and must be
delivered to the Funds 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 a 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 applicable Fund(s),
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 Investor Shares back to a 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. Each 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.

Each 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. Each Trust generally sends payment for shares on the business
day after a request is received. In case of emergencies, each 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, each 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 Funds 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 Funds.
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 Funds. Such brokers or
financial institutions may designate other intermediaries to accept
redemption orders on behalf of the Funds. For purposes of pricing, a 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
Trusts' distributor, provide that these orders will be priced at the Fund's
net asset value next determined after they are received by the broker

-77-

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 a Fund, in addition to any fees a Fund charges.

Involuntary redemptions. If, because of your redemptions, your account
balance for any of the Funds falls below a minimum amount set by the
Trustees (presently $2,000), a Trust may choose to redeem your Investor
Shares in the Funds 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.
Each Trust may also redeem Investor Shares if you own shares of the Funds
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. Each Trust may suspend the right of redemption of a Fund or
postpone payment by a 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 a
Fund's net asset value not reasonably practicable.

Redemptions in kind. The Trusts do not expect to redeem Investor Shares in
kind under normal circumstances. If a 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. Schroder Capital Funds (Delaware) has agreed to redeem Investor
Shares of Schroder International Alpha Fund and Schroder U.S. Opportunities
Fund solely in cash up to the lesser of $250,000 or 1% of the Fund's net
assets attributable to Investor Shares during any 90-day period for any one
shareholder. In consideration of the best interests of the remaining
shareholders, Schroder Capital Funds (Delaware) may pay any redemption
proceeds exceeding this amount for any of these Funds in whole or in part
by a distribution in kind of securities held by the applicable Fund in lieu
of cash. Schroder Global Series Trust and Schroder Series Trust may pay
redemption proceeds in any amount with respect to Schroder Emerging Market
Equity Fund, Schroder International Diversified Value Fund, Schroder North
American Equity Fund, Schroder U.S. Small and Mid Cap Opportunities Fund,
Schroder Enhanced Income Fund, Schroder Strategic Bond Fund, Schroder Total
Return Fixed Income Fund, Schroder Municipal Bond Fund, or Schroder
Short-Term Municipal Bond Fund in whole or in part by a distribution in
kind of liquid securities held by the applicable 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. Each 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

-78-

redemption requests by telephone, BFDS will follow reasonable procedures to
confirm that telephone instructions are genuine. BFDS and the Trusts
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. Schroder Emerging Market Equity Fund, Schroder
International Alpha Fund, Schroder International Diversified Value Fund,
Schroder U.S. Opportunities Fund, Schroder U.S. Small and Mid Cap
Opportunities Fund, and Schroder Strategic Bond Fund each 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 a 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 a 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 Funds
reserve the right to make other exceptions to the application of the
redemption fee in the future provided those exceptions are not inconsistent
with the overall purpose of the redemption fee policy. 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 Investor Shares of a 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 Schroder Emerging Market Equity
Fund, Schroder International Alpha Fund, Schroder International Diversified
Value Fund, Schroder U.S. Opportunities Fund, Schroder U.S. Small and Mid
Cap Opportunities Fund, and Schroder Strategic Bond 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 Trusts 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
Trusts 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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DIVIDENDS AND DISTRIBUTIONS

Schroder Enhanced Income Fund, Schroder Total Return Fixed Income Fund,
Schroder Municipal Bond Fund, and Schroder Short-Term Municipal Bond Fund
each declare dividends from net investment income daily and distribute
these dividends monthly. Schroder Strategic Bond Fund declares dividends
from net investment income and distributes these dividends quarterly.
Schroder Emerging Market Equity Fund, Schroder International Alpha Fund,
Schroder International Diversified Value Fund, Schroder North American
Equity Fund, Schroder U.S. Opportunities Fund, and Schroder U.S. Small and
Mid Cap Opportunities Fund each declare dividends from net investment
income and distribute these dividends annually. All Funds distribute any
net investment income and any net realized capital gain at least annually.
All Funds make distributions from net capital gain after applying any
available capital loss carryovers.

Shares begin to earn dividends on the first business day following the day
of purchase. Shares earn dividends through the date of redemption.

YOU CAN CHOOSE FROM FOUR DISTRIBUTION OPTIONS:

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

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

o For each Fund except Schroder North American Equity Fund, receive
distributions from net investment income in additional Investor Shares
of your Fund while receiving capital gain distributions in cash; or

o 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 a Fund will be reinvested in Investor Shares of that 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 each of the Funds has adopted policies and
procedures with respect to frequent purchases and redemptions of Fund
shares by Fund shareholders. Each 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 a Fund's
shareholders, although a Fund will not necessarily prevent all frequent
trading in its shares. Each 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). Each 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 a Fund or
its shareholders, although the Trusts and Schroders have not established
any maximum amount or number of such exchanges that may occur in any
period. Each Trust generally expects to inform any persons that their
purchase has been rejected within 24 hours. In addition, the Boards of
Trustees of Schroder Emerging Market Equity Fund, Schroder International
Alpha Fund, Schroder International Diversified Value Fund, Schroder U.S.
Opportunities Fund, Schroder U.S. Small and Mid Cap Opportunities Fund, and
Schroder Strategic Bond Fund have established a 2.00% redemption fee for
shares of these Funds 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. Each 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 Trusts' "market timing" policies. Each 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 applicable SAI for additional information on frequent purchases and
redemptions of Fund shares. There can be no assurance that the Funds or
Schroders will identify all harmful purchase or redemption activity, or
market timing or similar activities, affecting the Funds, or that the Funds
or Schroders will be successful in limiting or eliminating such activities.

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PAYMENT OF FEES

Subject to general review by the Board of Trustees, the Funds 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 Funds' 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 a Fund or its shareholders.

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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 a 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 a 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 a 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 a 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. Schroder
Enhanced Income Fund, Schroder Strategic Bond Fund, Schroder Total Return
Fixed Income Fund, Schroder Municipal Bond Fund, and Schroder Short-Term
Municipal Bond Fund do not expect a significant portion of their
distributions to be derived from qualified dividend income.

Distributions are taxable to shareholders even if they are paid from income
or gains earned by a 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.

For Schroder Municipal Bond Fund and Schroder Short-Term Municipal Bond
Fund, distributions designated as "exempt-interest dividends" will
generally not be subject to federal income tax. Gains realized by a Fund on
the sale or exchange of investments the income from which is tax-exempt
will be taxable to shareholders. Shareholders of the Funds who receive
social security or railroad retirement benefits should consult their tax
advisor to determine what effect, if any, an investment in the Funds may
have on the federal taxation of their benefits. In addition, an investment
in the Funds may result in liability for federal alternative minimum tax,
both for individual and corporate shareholders.

Distributions by a 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 a Fund as an investment through
such a plan and the tax treatment of distributions (including distributions
of amounts attributable to an investment in a Fund) from such a plan.

A Fund's investment in certain debt obligations and derivative contracts
may cause the Fund to recognize taxable income in excess of the cash
generated by such obligations or contracts. Thus, a 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 Funds beginning after December 31, 2004 and before
January 1, 2008, the Funds 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

-84-

excess of net long-term capital losses, in each case to the extent such
distributions are properly designated by the Funds.

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 a 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. A 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 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 a Fund's recognition of
ordinary income and may affect the timing or amount of a Fund's
distributions.

DERIVATIVES. A 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
Funds. 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 Funds.

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DISCLOSURES OF FUND PORTFOLIO INFORMATION

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

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FINANCIAL HIGHLIGHTS

The financial highlights below are intended to help you understand
financial performance of each of the Schroder International Alpha Fund,
Schroder North American Equity Fund, Schroder U.S. Opportunities Fund,
Schroder Enhanced Income Fund, Schroder Total Return Fixed Income Fund,
Schroder Municipal Bond Fund, and Schroder Short-Term Municipal Bond Fund
for the past five years or, if more recent, since their inception. Certain
information reflects financial results for a single Fund share. The total
returns represent the total return for an investment in Investor Shares of
a Fund, assuming reinvestment of all dividends and distributions.

Financial highlights for the Schroder Total Return Fixed Income Fund for
the six months ended April 30, 2006 are unaudited. For all periods through
the fiscal year ended October 31, 2005, the financial highlights have been
audited by PricewaterhouseCoopers LLP, independent registered public
accountant to the Funds. The audited financial statements for the Funds and
the related independent registered public accountant's report are contained
in the Funds' combined Annual Report and are incorporated by reference into
each Fund's SAI. The unaudited financial statements for the Schroder Total
Return Fixed Income Fund are contained in its Semi-Annual Report, and are
incorporated by reference into its SAI. Copies of the Annual Report and the
Schroder Total Return Fixed Income Fund's Semi-Annual Report may be
obtained without charge by writing the Funds at P.O. Box 8507, Boston,
Massachusetts 02266, or by calling (800) 464-3108. The Funds' Annual Report
and the Schroder Total Return Fixed Income Fund's Semi-Annual Report are
also available on the following website: www.schroderfunds.com.

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FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGH THE PERIOD ENDED OCTOBER 31 (AND THE PERIOD ENDED APRIL 30, 2006
(UNAUDITED) WITH RESPECT TO THE SCHRODER TOTAL RETURN FIXED INCOME FUND)

NET REALIZED
AND UNREALIZED DISTRIBUTIONS
GAINS FROM NET
(LOSSES) ON DIVIDENDS GAIN ON
NET ASSET NET INVESTMENTS FROM INVESTMENTS
VALUE, INVESTMENT AND FOREIGN TOTAL FROM NET AND FOREIGN DISTRIBUTIONS
BEGINNING INCOME CURRENCY INVESTMENT INVESTMENT CURRENCY FROM RETURN
OF PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME TRANSACTIONS OF CAPITAL
--------- ---------- -------------- ---------- ---------- ------------- -------------

INTERNATIONAL ALPHA FUND
2005 $ 7.08 $ 0.14 $ 1.22 $ 1.36 $(0.09) $ -- $--
2004 6.37 0.09 0.75 0.84 (0.13) -- --
2003 5.37 0.10 1.08 1.18 (0.12) (0.06) --
2002 7.26 0.04 (1.13) (1.09) -- (0.80) --
2001 16.74 0.09 (2.38) (2.29) (0.31) (6.88) --
NORTH AMERICAN EQUITY FUND
2005(b) $11.00 $ 0.06 $ 0.63 $ 0.69 $(0.05) $(0.49) $--
2005(c) 10.88 0.22 0.62 0.84 (0.20) (0.52) --
2004(c)(d) 10.00 0.09 0.86 0.95 (0.04) (0.03) --
U.S. OPPORTUNITIES FUND
2005 $19.58 --(e) $ 2.11* $ 2.11 $ -- $(2.03) $--
2004 16.18 --(e) 3.40* 3.40 -- -- --
2003 12.57 (0.16) 4.11 3.95 -- (0.34) --
2002 15.17 (0.10) (1.15) (1.25) -- (1.35) --
2001 18.01 (0.13) 0.59 0.46 -- (3.30) --
ENHANCED INCOME FUND
2005(f) $10.00 $ 0.26 $(0.04) $ 0.22 $(0.26) $ -- $--
TOTAL RETURN FIXED INCOME FUND**
2006(g) $ 9.85 $ 0.23 $(0.15) $ 0.08 $(0.25) $(0.02) $--
2005(f) 10.00 0.30 (0.15) 0.15 (0.30) -- --
MUNICIPAL BOND FUND
2005 $10.12 $ 0.36 $(0.15) $ 0.21 $(0.36) $ -- $--
2004(h) 10.00 0.24 0.11 0.35 (0.23) -- --
SHORT-TERM MUNICIPAL BOND FUND
2005 $ 9.97 $ 0.29 $(0.05) $ 0.24 $(0.29) $ -- $--
2004(h) 10.00 0.15 (0.03) 0.12 (0.15) -- --

* Includes redemption fees. Amount was less than $0.01 per share.

** Schroder U.S. Core Fixed Income Fund was renamed Schroder Total Return
Fixed Income Fund effective May 15, 2006.

(a) Total returns would have been lower had certain Fund expenses not been
waived or reimbursed during the periods shown. Total return calculations
for a period of less than one year are not annualized.

(b) For the six months ended October 31, 2005, the North American Equity Fund's
fiscal year end changed from April 30 to October 31. All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.

(d) Commenced operations on September 17, 2003. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.

(e) Amount was less than $(0.01) per share.

(f) Commenced operations on December 31, 2004. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.

(g) For the six months ended April 30, 2006 (unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.

(h) Commenced operations on December 31, 2003. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.

-88-

RATIO OF
EXPENSES TO
AVERAGE NET RATIO OF EXPENSES
ASSETS TO AVERAGE NET
(INCLUDING ASSETS (EXCLUDING
NET ASSET WAIVERS, WAIVERS,
TOTAL VALUE, END TOTAL NET ASSETS, END REIMBURSEMENTS REIMBURSEMENTS
DISTRIBUTIONS OF PERIOD RETURN(A) OF PERIOD (000) AND OFFSETS) AND OFFSETS)
------------- ---------- --------- --------------- -------------- -----------------

INTERNATIONAL ALPHA FUND
2005 $(0.09) $ 8.35 19.45% $ 6,545 1.25% 3.88%
2004 (0.13) 7.08 13.31 5,233 1.25 3.36
2003 (0.18) 6.37 22.66 6,242 1.25 3.27
2002 (0.80) 5.37 (17.20) 6,427 1.14 1.94
2001 (7.19) 7.26 (24.96) 20,850 0.99 1.41
NORTH AMERICAN EQUITY FUND
2005(b) $(0.54) $11.15 6.35% $1,303,276 0.35% 0.35%
2005(c) (0.72) 11.00 7.59 883,146 0.33 0.33
2004(c)(d) (0.07) 10.88 9.56 890,929 0.37 0.37
U.S. OPPORTUNITIES FUND
2005 $(2.03) $19.66 11.26% $ 140,467 1.13% 1.13%
2004 -- 19.58 21.01 73,679 1.62 1.62
2003 (0.34) 16.18 32.13 46,783 1.93 2.25
2002 (1.35) 12.57 (9.91) 41,857 1.49 1.50
2001 (3.30) 15.17 3.25 28,096 1.49 1.83
ENHANCED INCOME FUND
2005(f) $(0.26) $ 9.96 2.17% $ 101,106 0.40% 0.82%
TOTAL RETURN FIXED INCOME FUND**
2006(g) $(0.27) $ 9.66 0.79% $ 20,519 0.40% 1.92%
2005(f) (0.30) 9.85 1.51 9,138 0.40 3.05
MUNICIPAL BOND FUND
2005 $(0.36) $ 9.97 2.14% $ 96,114 0.55% 0.93%
2004(h) (0.23) 10.12 3.53 45,781 0.55 1.41
SHORT-TERM MUNICIPAL BOND FUND
2005 $(0.29) $ 9.92 2.47% $ 131,062 0.55% 0.85%
2004(h) (0.15) 9.97 1.26 74,031 0.55 1.30

RATIO OF NET
INVESTMENT
INCOME (LOSS) TO
AVERAGE NET
ASSETS (INCLUDING
WAIVERS,
REIMBURSEMENTS PORTFOLIO
AND OFFSETS) TURNOVER RATE
----------------- -------------

INTERNATIONAL ALPHA FUND
2005 1.85% 126%
2004 1.16 136
2003 2.09 50
2002 0.60 111
2001 0.57 146
NORTH AMERICAN EQUITY FUND
2005(b) 1.39% 30%
2005(c) 1.79 89
2004(c)(d) 1.29 54
U.S. OPPORTUNITIES FUND
2005 (0.29)% 107%
2004 (0.83) 144
2003 (1.22) 162
2002 (0.75) 81
2001 (0.79) 105
ENHANCED INCOME FUND
2005(f) 3.08% 61%
TOTAL RETURN FIXED INCOME FUND**
2006(g) 4.80% 97%
2005(f) 3.61 571
MUNICIPAL BOND FUND
2005 3.70% 27%
2004(h) 2.82 46
SHORT-TERM MUNICIPAL BOND FUND
2005 3.03% 36%
2004(h) 1.95 17

-89-

--------------------------------------------------------------------------------
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 a
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 a 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.

-90-

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

INVESTMENT SUB-ADVISER
SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER INTERNATIONAL ALPHA FUND,
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND, SCHRODER NORTH AMERICAN EQUITY
FUND, AND SCHRODER STRATEGIC BOND FUND
Schroder Investment Management North America Limited
31 Gresham Street
London EC2V 7QA

ADMINISTRATOR
SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER INTERNATIONAL DIVERSIFIED VALUE
FUND, SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND, SCHRODER ENHANCED
INCOME FUND, SCHRODER STRATEGIC BOND FUND, SCHRODER TOTAL RETURN FIXED INCOME
FUND, SCHRODER MUNICIPAL BOND FUND, AND SCHRODER SHORT-TERM MUNICIPAL BOND FUND
SEI Investments Global Funds Services
1 Freedom Valley Drive
Oaks, Pennsylvania 19456

ADMINISTRATOR
SCHRODER NORTH AMERICAN EQUITY FUND
Schroder Fund Advisors, Inc.
875 Third Avenue
New York, New York 10022

SUB-ADMINISTRATOR
SCHRODER INTERNATIONAL ALPHA FUND, SCHRODER NORTH AMERICAN EQUITY FUND, AND
SCHRODER U.S. OPPORTUNITIES FUND
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 CAPITAL FUNDS (DELAWARE)
Schroder International Alpha Fund
Schroder U.S. Opportunities Fund

SCHRODER SERIES TRUST
Schroder Emerging Market Equity Fund
Schroder International Diversified Value Fund
Schroder U.S. Small and Mid Cap Opportunities Fund
Schroder Enhanced Income Fund
Schroder Strategic Bond Fund
Schroder Total Return Fixed Income Fund
Schroder Municipal Bond Fund
Schroder Short-Term Municipal Bond Fund

SCHRODER GLOBAL SERIES TRUST
Schroder North American Equity Fund

Schroder Emerging Market Equity Fund, Schroder International Diversified Value
Fund, Schroder U.S. Small and Mid Cap Opportunities Fund, and Schroder Strategic
Bond Fund have a combined SAI which includes additional information about the
Funds. Each of Schroder International Alpha Fund, Schroder North American Equity
Fund, Schroder U.S. Opportunities Fund, Schroder Enhanced Income Fund, Schroder
Total Return Fixed Income Fund, Schroder Municipal Bond Fund, and Schroder
Short-Term Municipal Bond Fund has a separate SAI and annual and semi-annual
reports to shareholders which contain additional information about the
applicable Funds. In the Funds' annual report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Funds' performance during their last fiscal year. The SAIs, the financial
statements included in the Funds' most recent annual reports to shareholders,
and the unaudited financial statements included in the Schroder Total Return
Fixed Income Fund's most recent semi-annual report to shareholders, are
incorporated by reference into this Prospectus, which means they are part of
this Prospectus for legal purposes. You may get free copies of these materials,
request other information about the Funds, 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 Funds' SAIs and annual and semi-annual reports are also available on the
following website: www.schroderfunds.com.

You may review and copy information about each Fund, including its SAI, at the
Securities and Exchange Commission's public reference room in Washington, D.C.
You may call the Commission at 1-800-SEC-0330 for information about the
operation of the public reference room. You may also access reports and other
information about each Fund on the Commission's 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 Trusts' file number under the
Investment Company Act, which are: Schroder Capital Funds (Delaware): 811-1911;
Schroder Series Trust: 811-7840; and Schroder Global Series Trust: 811-21364.

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

File No. 811-1911 -- Schroder Capital Funds (Delaware)
File No. 811-7840 -- Schroder Series Trust
File No. 811-21364 -- Schroder Global Series Trust

[SCHRODERS LOGO]

PROSPECTUS

August 30, 2006

EQUITY FUNDS
------------

SCHRODER EMERGING MARKET EQUITY FUND

SCHRODER INTERNATIONAL ALPHA FUND

SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND

SCHRODER NORTH AMERICAN EQUITY FUND

SCHRODER U.S. OPPORTUNITIES FUND

SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND

TAXABLE FIXED INCOME FUNDS
--------------------------

SCHRODER ENHANCED INCOME FUND

SCHRODER STRATEGIC BOND FUND

SCHRODER TOTAL RETURN FIXED INCOME FUND

TAX-EXEMPT FIXED INCOME FUNDS
-----------------------------

SCHRODER MUNICIPAL BOND FUND

SCHRODER SHORT-TERM MUNICIPAL BOND FUND

Advisor Shares

SCHRODER INTERNATIONAL ALPHA FUND seeks long-term capital appreciation
through investment in securities markets outside the United States.

SCHRODER NORTH AMERICAN EQUITY FUND seeks capital growth by investing
primarily in equity securities of companies in the United States.

SCHRODER U.S. OPPORTUNITIES FUND seeks capital appreciation by investing
primarily in equity securities of companies in the United States with
market capitalizations of $2.2 billion or less.

SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND seeks capital
appreciation by investing primarily in equity securities of small and mid
cap companies in the United States.

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

SCHRODER CAPITAL FUNDS (DELAWARE)
SCHRODER SERIES TRUST
SCHRODER GLOBAL SERIES TRUST

TABLE OF CONTENTS

PAGE
----
SUMMARY INFORMATION ............................................... 1
SCHRODER EMERGING MARKET EQUITY FUND ........................... 1
SCHRODER INTERNATIONAL ALPHA FUND .............................. 5
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND .................. 9
SCHRODER NORTH AMERICAN EQUITY FUND ............................ 13
SCHRODER U.S. OPPORTUNITIES FUND ............................... 17
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND ............. 21
SCHRODER ENHANCED INCOME FUND .................................. 24
SCHRODER STRATEGIC BOND FUND ................................... 29
SCHRODER TOTAL RETURN FIXED INCOME FUND ........................ 33
SCHRODER MUNICIPAL BOND FUND ................................... 38
SCHRODER SHORT-TERM MUNICIPAL BOND FUND ........................ 42
FEES AND EXPENSES ................................................. 46
PRINCIPAL RISKS OF INVESTING IN THE FUNDS ......................... 49
NON-PRINCIPAL INVESTMENT STRATEGIES AND TECHNIQUES ................ 63
MANAGEMENT OF THE FUNDS ........................................... 66
HOW THE FUNDS' SHARES ARE PRICED .................................. 73
HOW TO BUY SHARES ................................................. 74
HOW TO SELL SHARES ................................................ 78
EXCHANGES ......................................................... 81
ADDITIONAL INFORMATION ABOUT ADVISOR SHARES; DISTRIBUTION PLANS ... 82
DIVIDENDS AND DISTRIBUTIONS ....................................... 83
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES ................. 84
PAYMENT OF FEES ................................................... 85
TAXES ............................................................. 86
DISCLOSURES OF FUND PORTFOLIO INFORMATION ......................... 88
FINANCIAL HIGHLIGHTS .............................................. 89
USA PATRIOT ACT ................................................... 92

-i-

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

SCHRODER EMERGING MARKET EQUITY FUND

INVESTMENT OBJECTIVE. To seek capital appreciation.

-1-

PRINCIPAL RISKS.

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

-2-

Small companies may have limited product lines, markets, or financial
resources, or may depend on a limited management group. Their
securities may trade less frequently and in limited volumes. As a
result, the prices of these securities may fluctuate more than the
prices of securities of larger, more widely traded companies. Also,
there may be less publicly available information about small and mid
cap companies or less market interest in their securities as compared
to larger companies, and it may take longer for the price of the
securities to reflect the full value of their issuers' earnings
potential or assets.

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

-3-

o 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.

Performance Information. The Fund recently commenced operations and does not yet
have historical investment performance.

-4-

SCHRODER INTERNATIONAL ALPHA FUND

INVESTMENT OBJECTIVE. Long-term capital appreciation through investment in
securities markets outside the United States.

The Fund also may do the following:

o Invest in securities of issuers domiciled or doing business in
"emerging market" countries.

PRINCIPAL RISKS.

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

-5-

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

-6-

o 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.

Performance Information.(+)(++)(+++)

Below is a bar chart that shows the investment returns of the Fund's
Advisor Shares for each of its last ten full calendar years of operations.
The table following the bar chart shows how the Fund's average annual
returns for the last year, for the last five years, and for the last ten
years compare to a broad-based securities market index. The bar chart and
table provide some indication of the risks of investing in the Fund by
comparing the Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
---- ----- ----- ----- ----- ------ ------ ----- ----- -----

9.65% 3.08% 13.24% 30.66% -2.54% -25.96% -20.00% 32.53% 15.08% 18.00%

-7-

During the periods shown above, the highest quarterly return was 21.49% for
the quarter ended December 31, 1999, and the lowest was -22.35% for the
quarter ended September 30, 2002.

AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR FIVE YEARS TEN YEARS
---------------------------------------------------- -------- ---------- ---------

RETURN BEFORE TAXES 18.00% 1.29% 5.68%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 17.22% -0.18% 2.39%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND
SHARES (1) 11.68% 0.11% 3.26%
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 13.54% 4.55% 5.84%

+ The current portfolio management team primarily responsible for making
investment decisions for the Fund assumed this responsibility
effective March 2005. The performance results shown in the bar chart
and table for periods prior to such date were achieved by the Fund
under different lead portfolio managers.

(++) Advisor Shares of the Fund are offered commencing May 15, 2006. The
performance information provided in the bar chart and table for
periods prior to May 15, 2006 reflects the performance of the
Investor Shares of the Fund, offered through a separate prospectus,
adjusted to reflect the 12b-1 fees paid by Advisor Shares.

(+++) Effective April 1, 2006, the combined advisory and administrative
fees of the Fund increased to 0.975% per annum. If the Fund had paid
such higher fees during the periods shown, the returns shown in the
bar chart and table would have been lower. See "Management of the
Funds -- Management Fees."

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-8-

SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND

INVESTMENT OBJECTIVE. Long-term capital appreciation.

-9-

The Fund generally sells securities when the Fund's sub-adviser believes
they are fully priced or when the sub-adviser considers more attractive
investment candidates are available.

PRINCIPAL RISKS.

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

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

-10-

-11-

o 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.

Performance Information. The Fund recently commenced operations and does not
yet have historical investment performance.

-12-

SCHRODER NORTH AMERICAN EQUITY FUND

INVESTMENT OBJECTIVE. The Fund seeks long-term capital growth.

PRINCIPAL RISKS.

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

o EQUITY SECURITIES RISK. Equity securities are securities that
represent an ownership interest (or the right to acquire such an
interest) in a company and include common

-13-

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o EQUITY MARKETS RISK. A risk of investing in the Fund is the risk that
the value of the equity securities in the portfolio will fall, or will
not appreciate as anticipated by the Fund's sub-adviser, due to
factors that adversely affect North American equities markets
generally or particular companies in the portfolio. The values of
equity securities fluctuate in response to issuer, political, market,
and economic developments. Equity prices can fluctuate dramatically
over short time periods in response to these developments. Different
parts of the market and different types of equity securities can react
differently to these developments. For example, large capitalization
stocks can react differently from small capitalization stocks, and
"growth" stocks can react differently from "value" stocks. Issuer,
political, or economic developments can affect a single issuer,
issuers within an industry or economic sector or geographic region, or
the market as a whole.

-14-

o 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.

Performance Information.(+)

Below is a bar chart that shows the investment returns of the Fund's
Advisor Shares for each of its full calendar years since the Fund commenced
operations. The table following the bar chart shows how the Fund's average
annual returns for the last year and life of the Fund compare to a
broad-based securities market index. The bar chart and table provide some
indication of the risks of investing in the Fund by comparing the Fund's
performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2004 2005
----- ----
11.22% 6.64%

During the periods shown above, the highest quarterly return was 9.20% for
the quarter ended December 31, 2004, and the lowest was -1.49% for the
quarter ended March 31, 2005.

-15-

AVERAGE ANNUAL TOTAL RETURNS LIFE OF FUND
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR (SINCE SEPTEMBER 17, 2003)
-------------------------------------------- -------- --------------------------

RETURN BEFORE TAXES 6.64% 12.04%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 5.07% 10.25%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE
OF FUND SHARES (1) 5.20% 9.48%
FTSE NORTH AMERICAN INDEX (2) (REFLECTS NO
DEDUCTION FOR FEES, EXPENSES OR TAXES) 7.45% 12.48%
S&P 500 INDEX (3) 4.91% 10.90%

(2) The FTSE North American Index is a market capitalization value
weighted composite index of over 700 U.S. and Canadian companies and
reflects the reinvestment of dividends.

(3) The S&P 500 Index is a market capitalization value weighted composite
index of 500 large capitalization U.S. companies and reflects the
reinvestment of dividends.

(+) Advisor Shares of the Fund are offered commencing March 31, 2006. The
performance information provided in the bar chart and the table for
periods prior to March 31, 2006 reflects the performance of the
Investor Shares of the Fund, offered through a separate prospectus,
adjusted to reflect the 12b-1 fees paid by Advisor Shares.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-16-

SCHRODER U.S. OPPORTUNITIES FUND

INVESTMENT OBJECTIVE. To seek capital appreciation.

PRINCIPAL RISKS.

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

-17-

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

-18-

o 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.

Performance Information.(+) (++) (+++)

Below is a bar chart that shows the investment returns of the Fund's
Advisor Shares for each of its last ten full calendar years of operations.
The table following the bar chart shows how the Fund's average annual
returns for the last year, the last five years, and for the last ten years
compare to a broad-based securities market index. The bar chart and table
provide some indication of the risks of investing in the Fund by comparing
the Fund's performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
----- ----- ----- ----- ----- ----- ------ ----- ----- ----

21.98% 26.54% -9.45% 12.82% 30.90% 11.31% -19.07% 36.78% 25.00% 6.11%

During the periods shown above, the highest quarterly return was 18.52% for
the quarter ended June 30, 1997, and the lowest was -23.32% for the quarter
ended September 30, 1998.

-19-

AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR FIVE YEARS TEN YEARS
------------------------------------------------------- -------- ---------- ---------

RETURN BEFORE TAXES 6.11% 10.33% 12.93%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 5.54% 9.20% 10.18%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND
SHARES (1) 4.75% 8.54% 9.76%
RUSSELL 2000 INDEX (2) (REFLECTS NO DEDUCTION FOR FEES,
EXPENSES OR TAXES) 4.55% 8.22% 9.26%

(1) After tax returns are estimated using the highest historical
individual federal marginal income tax rates and do not reflect the
impact of state and local taxes. Actual after-tax returns depend on
an investor's tax situation and may differ from those shown.
After-tax returns are not relevant to investors who hold their
shares in the Fund through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts. In some cases, the return
after taxes may exceed the return before taxes due to an assumed tax
benefit from any losses on a sale of Fund shares at the end of the
measurement period.

(2) The Russell 2000 Index is a market capitalization weighted broad
based index of 2000 small capitalization U.S. companies.

(++) Advisor Shares of the Fund are offered commencing May 15, 2006. The
performance information provided in the bar chart and the table for
periods prior to May 15, 2006 reflects the performance of the
Investor Shares of the Fund, offered through a separate prospectus,
adjusted to reflect the 12b-1 fees paid by Advisor Shares.

(+++) Effective May 1, 2006, the combined advisory and administrative fees
of the Fund increased to 1.00% per annum. If the Fund had paid such
higher fees during the periods shown, the returns shown in the bar
chart and table would have been lower. See "Management of the Funds
-- Management Fees."

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-20-

SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND

INVESTMENT OBJECTIVE. To seek capital appreciation.

PRINCIPAL RISKS.

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

-21-

their securities as compared to larger companies, and it may take
longer for the price of the securities to reflect the full value of
their issuers' earnings potential or assets.

o CONVERTIBLE SECURITIES RISK. The Fund may invest in preferred stocks
that are convertible into common stocks, and so subject to the risks
of investments in both preferred and common stocks.

o INITIAL PUBLIC OFFERINGS (IPOS) RISK. The Fund may purchase securities
of companies in initial public offerings of their securities, either
in the initial offering itself or shortly after the initial offering.
Such investments are subject generally to the risks described above
under "Small and Mid Cap Companies Risk." Such securities have no
trading history, and information about such companies may be available
for very limited periods. Under certain market conditions, very few
companies, if any, may determine to make initial public offerings of
their securities. At any particular time or from time to time the Fund
may not be able to invest in securities issued in IPOs or invest to
the extent desired. The investment performance of the Fund during
periods when it is unable to invest significantly or at all in initial
public offerings may be lower than during periods when the Fund is
able to do so. The prices of securities sold in initial public
offerings can be highly volatile.

-22-

Issuer, political, or economic developments can affect a single
issuer, issuers within an industry or economic sector or geographic
region, or the market as a whole.

o 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.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's 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.

-23-

SCHRODER ENHANCED INCOME FUND

INVESTMENT OBJECTIVES. Principally, to seek high current income, consistent
with the preservation of capital and reasonable liquidity; secondarily, to
seek a high rate of total return.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests in a diversified
portfolio of U.S. dollar-denominated income-producing obligations.

The Fund will normally invest at least 80% of its net assets in
income-producing obligations, which may include, for example:

o securities issued or guaranteed by the U.S. Government or its agencies
or instrumentalities;

o debt securities of domestic or foreign corporations;

o mortgage-backed and other asset-backed securities;

o obligations of non-U.S. governments or their subdivisions, agencies,
and government-sponsored enterprises;

o obligations of international agencies or supranational entities;

o commercial paper and master demand notes;

o preferred securities; and

o short-term investments, such as repurchase agreements, money market
securities, bank certificates of deposit, fixed time deposits, and
bankers' acceptances.

The Fund's adviser currently expects that a substantial portion of the
Fund's assets will be invested in mortgage-backed and other asset-backed
securities.

Foreign securities in which the Fund invests will be denominated in the
U.S. dollar.

-24-

o The Fund will normally invest more than 50% of its total assets in
securities which a nationally recognized statistical rating
organization has rated Aaa or AAA (or the equivalent).

o The Fund will normally invest no more than 25% of its total assets in
securities that are rated below Aa3 (or the equivalent) by a
nationally recognized statistical rating organization.

o The Fund will normally invest no more than 10% of its total assets in
securities that are rated below A3 (or the equivalent) by a nationally
recognized statistical rating organization.

o The Fund expects not to invest in money market securities that have a
short-term rating lower than A2 (or the equivalent) by a nationally
recognized statistical rating organization.

-25-

PRINCIPAL RISKS.

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

o 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.

-26-

o 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 adviser
currently expects that the portfolio turnover rate for the Fund's
current fiscal year will be approximately 400%.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's 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.

Performance Information.

Below is a bar chart that shows the investment returns of the Fund's
Advisor Shares for each of its full calendar years since the Fund commenced
operations. The table following the bar chart shows how the Fund's average
annual returns for the last year (life of the Fund) compare to a
broad-based securities market index. The bar chart and table provide some
indication of the risks of investing in the Fund by comparing the Fund's
performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2005
----
2.64%

During the period shown above, the highest quarterly return was 0.89% for
the quarter ended June 30, 2005, and the lowest was 0.41% for the quarter
ended March 31, 2005.

AVERAGE ANNUAL TOTAL RETURNS ONE YEAR
(FOR THE PERIOD ENDED DECEMBER 31, 2005) (LIFE OF FUND)
---------------------------------------------------------- --------------
RETURN BEFORE TAXES 2.64%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 1.57%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND
SHARES (1) 1.71%
LIBOR 3 MONTH USD FIXED INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES OR TAXES) 3.64%

-27-

(2) The LIBOR 3 Month USD Fixed Index is a broad-based basket of U.S. debt
securities.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-28-

SCHRODER STRATEGIC BOND FUND

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

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

-29-

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.

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

o 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.

-30-

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.

o 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.

o EMERGING MARKET SECURITIES RISK. The Fund may invest in "emerging
market" countries whose securities markets may experience heightened
levels of volatility. The

-31-

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.

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 Fund's SAI.

-32-

SCHRODER TOTAL RETURN FIXED INCOME FUND

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

o securities issued or guaranteed by the U.S. Government or its agencies
or instrumentalities;

o debt securities of domestic or foreign corporations;

o mortgage-backed and other asset-backed securities;

o taxable and tax-exempt municipal bonds;

o obligations of international agencies or supranational entities;

o debt securities convertible into equity securities;

o inflation-indexed bonds;

o structured notes, including hybrid or "indexed" securities,
event-linked bonds, and loan participations;

o delayed funding loans and revolving credit facilities; and

o short-term investments, such as repurchase agreements, bank
certificates of deposit, fixed time deposits, and bankers'
acceptances.

The Fund's adviser currently expects that a substantial portion of the
Fund's assets will be invested in mortgage-backed and asset-backed
securities.

-33-

In managing the Fund, the Fund's adviser generally relies on detailed
proprietary research. The adviser focuses on the sectors and securities it
believes are undervalued relative to the market.

The Fund's adviser will trade the Fund's portfolio securities actively. In
selecting individual securities for investment, the Fund's adviser
typically:

o uses in-depth fundamental research to identify sectors and securities
for investment by the Fund and to analyze risk;

o exploits inefficiencies in the valuation of risk and reward;

o looks to capitalize on rapidly shifting market risks and dynamics
caused by economic and technical factors; and

o considers the liquidity of securities and the portfolio overall as an
important factor in portfolio construction.

-34-

PRINCIPAL RISKS.

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

o 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.

-35-

o 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 adviser
currently expects that the portfolio turnover rate for the Fund's
current fiscal year will be approximately 400%.

o MANAGEMENT RISK. Because the Fund is actively managed, its investment
return depends on the ability of its adviser to manage its portfolio
successfully. The Fund's 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.

-36-

Performance Information.

Below is a bar chart that shows the investment returns of the Fund's
Advisor Shares for each of its full calendar years since the Fund commenced
operations. The table following the bar chart shows how the Fund's average
annual returns for the last year (life of the Fund) compare to a
broad-based securities market index. The bar chart and table provide some
indication of the risks of investing in the Fund by comparing the Fund's
performance to a broad measure of market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2005
----
2.85%

During the period shown above, the highest quarterly return was 3.14% for
the quarter ended June 30, 2005, and the lowest was -0.88% for the quarter
ended September 30, 2005.

AVERAGE ANNUAL TOTAL RETURNS ONE YEAR
(FOR THE PERIOD ENDED DECEMBER 31, 2005) (LIFE OF FUND)
--------------------------------------------------------------- --------------

RETURN BEFORE TAXES 2.85%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 1.52%
RETURN AFTER TAXES ON DISTRIBUTIONS AND SALE OF FUND SHARES (1) 1.84%
LEHMAN US AGGREGATE BOND INDEX (2) (REFLECTS NO DEDUCTION FOR
FEES, EXPENSES OR TAXES) 2.43%

(2) The Lehman US Aggregate Bond Index is a widely used measure of
short-term debt returns. It is not managed.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-37-

SCHRODER MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE. To seek a high level of current income exempt from
federal income tax, consistent with the preservation of capital.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests primarily in municipal
bonds that:

o pay interest that is exempt from federal income tax (but which may be
subject to federal alternative minimum tax ("AMT"));

o are investment grade in quality; and

-38-

In selecting individual securities for investment, the Fund's adviser
typically:

o assigns a relative value, based on creditworthiness, cash flow,
liquidity, and price, to each bond;

o uses in-depth credit analysis to determine the issuer's ability to
fulfill its obligations;

o compares each bond with a pre-refunded or escrowed to maturity
municipal bond to develop a theoretical intrinsic value;

o looks to exploit any inefficiencies between intrinsic value and market
trading price; and

o subordinates sector weightings to individual securities that may be
undervalued.

PRINCIPAL RISKS.

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

o 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 maturities and
in the case of portfolios of securities with longer average
maturities.

o 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.

-39-

o 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"), 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.

Performance Information.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2004 2005
---- ----
3.44% 2.82%

During the periods shown above, the highest quarterly return was 3.06% for
the quarter ended September 30, 2004, and the lowest was -1.86% for the
quarter ended June 30, 2004.

AVERAGE ANNUAL TOTAL RETURNS LIFE OF THE FUND
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR (SINCE DECEMBER 31, 2003)
----------------------------------------- -------- -------------------------

RETURN BEFORE TAXES 2.82% 3.13%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 2.59% 2.99%
RETURN AFTER TAXES ON DISTRIBUTIONS AND
SALE OF FUND SHARES (1) 2.84% 2.98%
LEHMAN 5-YEAR MUNICIPAL BOND INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES, EXPENSES
OR TAXES) 0.95% 1.82%

-40-

return before taxes due to an assumed tax benefit from any losses on a
sale of Fund shares at the end of the measurement period.

(2) The Lehman 5-Year Municipal Bond Index is a rules-based,
market-value-weighted unmanaged index of debt obligations issued by
municipalities with an approximate maturity of five years.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

-41-

SCHRODER SHORT-TERM MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE. To seek a high level of income exempt from federal
income tax, consistent with the preservation of capital.

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests primarily in municipal
bonds that:

o pay interest that is exempt from federal income tax (but which may be
subject to federal AMT);

o are investment grade in quality; and

-42-

In selecting individual securities for investment, the Fund's adviser
typically:

o assigns a relative value, based on creditworthiness, cash flow,
liquidity, and price, to each bond;

o uses in-depth credit analysis to determine the issuer's ability to
fulfill its obligations;

o compares each bond with a pre-refunded or escrowed to maturity
municipal bond to develop a theoretical intrinsic value;

o looks to exploit any inefficiencies between intrinsic value and market
trading price; and

o subordinates sector weightings to individual securities that may be
undervalued.

The Fund's adviser may sell a security for the Fund if the security reaches
the adviser's target price or if the adviser's credit outlook for the
security has deteriorated. The Fund's adviser may also sell a security to
facilitate the purchase of a security it believes is more attractive for
the Fund. Because the Fund's adviser devotes substantial independent
research to the selection of the Funds' investments, the Fund will likely
hold a number of investments that are not generally held by other mutual
funds.

PRINCIPAL RISKS.

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

o 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.

-43-

o 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"), 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.

Performance Information.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

2004 2005
---- ----
1.53% 2.26%

During the periods shown above, the highest quarterly return was 1.32% for
the quarter ended June 30, 2005, and the lowest was -0.90% for the quarter
ended June 30, 2004.

LIFE OF THE FUND
AVERAGE ANNUAL TOTAL RETURNS (SINCE DECEMBER 31,
(FOR THE PERIOD ENDED DECEMBER 31, 2005) ONE YEAR 2003)
----------------------------------------- -------- -------------------
RETURN BEFORE TAXES 2.26% 1.90%
RETURN AFTER TAXES ON DISTRIBUTIONS (1) 2.07% 1.77%
RETURN AFTER TAXES ON DISTRIBUTIONS AND
SALE OF FUND SHARES (1) 2.28% 1.83%
LEHMAN 1-YEAR MUNICIPAL BOND INDEX (2)
(REFLECTS NO DEDUCTION FOR FEES,
EXPENSES OR TAXES) 1.49% 1.28%

-44-

(2) The Lehman 1-Year Municipal Bond Index is a rules-based,
market-value-weighted index of debt obligations issued by
municipalities with short term maturities.

PAST PERFORMANCE (BEFORE AND AFTER TAXES) IS NOT NECESSARILY AN INDICATION OF
FUTURE PERFORMANCE. It is possible to lose money on an investment in a Fund.

----------

-45-

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

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

SHAREHOLDER FEES (paid directly from your investment):

(1) Shares of this 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
SCHRODER SCHRODER INTER- SCHRODER SCHRODER
EMERGING INTER- NATIONAL NORTH U.S.
MARKET NATIONAL DIVERSIFIED AMERICAN OPPORT-
EQUITY ALPHA VALUE EQUITY UNITIES
FUND FUND(1) FUND FUND FUND(1)
-------- -------- ----------- -------- ---------

MANAGEMENT
FEES (2) 1.00% 0.975% 1.00% 0.25% 1.00%
DISTRIBUTION
(12b-1) FEES 0.25% 0.25% 0.25% 0.35% 0.25%
OTHER
EXPENSES
(2)(3)(4) 2.14% 3.152% 2.18% 0.08% 0.40%
TOTAL ANNUAL
FUND
OPERATING
EXPENSES 3.39% 4.377% 3.43% 0.68% 1.65%
LESS: FEE
WAIVER AND
EXPENSE
LIMITATION(5) (1.39)% (2.877)% (1.93)% None None
NET EXPENSES
(5) 2.00% 1.50% 1.50% 0.68% 1.65%

SCHRODER
U.S.
SMALL SCHRODER SCHRODER
AND TOTAL SHORT-
MID CAP SCHRODER SCHRODER RETURN SCHRODER TERM
OPPORT- ENHANCED STRATEGIC FIXED MUNICIPAL MUNICIPAL
UNITIES INCOME BOND INCOME BOND BOND
FUND FUND FUND FUND FUND FUND
-------- -------- --------- -------- --------- ---------

MANAGEMENT
FEES (2) 1.00% 0.25% 0.75% 0.25% 0.40% 0.40%
DISTRIBUTION
(12b-1) FEES 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
OTHER
EXPENSES
(2)(3)(4) 1.53% 0.57% 1.21% 2.80% 0.53% 0.45%
TOTAL ANNUAL
FUND
OPERATING
EXPENSES 2.78% 1.07% 2.21% 3.30% 1.18% 1.10%
LESS: FEE
WAIVER AND
EXPENSE
LIMITATION(5) (1.13)% (0.42)% (0.81%) (2.65)% (0.38)% (0.30)%
NET EXPENSES
(5) 1.65% 0.65% 1.40% 0.65% 0.80% 0.80%

(1) Restated to reflect current fees.

-46-

(3) "Other Expenses" for Schroder Emerging Market Equity Fund, Schroder
International Diversified Value Fund, Schroder U.S. Small and Mid Cap
Opportunities Fund and Schroder Strategic Bond Fund are based on
estimated amounts for each Fund's current fiscal year.

(5) The "Net Expenses" shown for certain Funds reflect the effect of
contractually imposed fee waivers and/or expense limitations on the
Total Annual Fund Operating Expenses of each such Fund. In order to
limit the expenses of these Funds' Advisor Shares, the Funds' adviser
has contractually agreed to reduce its compensation (and, if
necessary, to pay other Fund expenses, other than interest, taxes, and
extraordinary expenses, which may include typically non-recurring
expenses such as, for example, organizational expenses, litigation
expenses, and shareholder meeting expenses) until February 28, 2007
for Schroder Enhanced Income Fund, Schroder Municipal Bond Fund, and
Schroder Short-Term Municipal Bond Fund, March 31, 2007 for the
Schroder Emerging Market Equity Fund and Schroder U.S. Small and Mid
Cap Opportunities Fund, May 9, 2007 for the Schroder International
Alpha Fund and the Schroder U.S. Opportunities Fund, and June 30, 2007
for Schroder Strategic Bond Fund, to the extent that the Total Annual
Fund Operating Expenses of a Fund allocable to its Advisor Shares
exceed the following annual rates (based on the average daily net
assets attributable to each Fund's Advisor Shares): Schroder Emerging
Market Equity Fund -- 2.00%; Schroder International Alpha Fund --
1.50%; Schroder U.S. Opportunities Fund -- 1.95%; Schroder U.S. Small
and Mid Cap Opportunities Fund -- 1.65%; Schroder Enhanced Income Fund
-- 0.65%; Schroder Strategic Bond Fund -- 1.40%; Schroder Municipal
Bond Fund -- 0.80%; and Schroder Short-Term Municipal Bond Fund --
0.80%. In order to limit the expenses of each of the Schroder
International Diversified Value Fund's Advisor Shares and the Schroder
Total Return Fixed Income Fund's Advisor Shares, the Funds' adviser
has contractually agree to reduce its compensation (and, if necessary,
to pay other Fund expenses) until August 30, 2007 to the extent that
the Total Annual Operating Expenses of a Fund (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) allocable to
each Fund's Advisor Shares exceed the following annual rates (based on
the average daily net assets attributable to each Fund's Advisor
Shares): Schroder International Diversified Value Fund -- 1.50%; and
Schroder Total Return Fixed Income Fund -- 0.65%. Net Expenses of the
Funds' Advisor Shares may be higher than the Net Expenses shown in the
table above to the extent the Fund has such interest, taxes, or
extraordinary expenses. The Schroder International Diversified Value
Fund and the Schroder Strategic Bond Fund do not anticipate any such
expenses in each such Fund's first fiscal year. In the last fiscal
year, Schroder International Alpha Fund, Schroder North American
Equity Fund, Schroder U.S. Opportunities Fund, Schroder Enhanced
Income Fund, Schroder Total Return Fixed Income Fund, Schroder
Municipal Bond Fund, and Schroder Short-Term Municipal Bond Fund had
no such expenses, and these Funds do not expect to incur such expenses
in the next fiscal year. The fee waiver and/or expense limitations for
the Funds may only be terminated during their term by the Board of
Trustees.

-47-

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

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

The Example assumes that you invest $10,000 in Advisor Shares of a 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 5 YEARS 10 YEARS
------ ------- ------- --------

SCHRODER EMERGING MARKET EQUITY FUND(1) $203 $ 913 N/A N/A
SCHRODER INTERNATIONAL ALPHA FUND(2) $153 $1,065 $1,989 $4,348
SCHRODER INTERNATIONAL DIVERSIFIED VALUE FUND(3) $153 $ 874 N/A N/A
SCHRODER NORTH AMERICAN EQUITY FUND $ 69 $ 218 $ 379 $ 847
SCHRODER U.S. OPPORTUNITIES FUND(2) $168 $ 520 $ 897 $1,955
SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES
FUND(1) $168 $ 755 N/A N/A
SCHRODER ENHANCED INCOME FUND(4) $ 66 $ 299 $ 549 $1,268
SCHRODER STRATEGIC BOND FUND(5) $143 $ 613 N/A N/A
SCHRODER TOTAL RETURN FIXED INCOME FUND(3) $ 66 $ 767 $1,491 $3,413
SCHRODER MUNICIPAL BOND FUND(4) $ 82 $ 337 $ 612 $1,398
SCHRODER SHORT-TERM MUNICIPAL BOND FUND(4) $ 82 $ 320 $ 577 $1,313

(1) The Example assumes that you invest on March 31, 2006 for Schroder
Emerging Market Equity Fund, and Schroder U.S. Small and Mid Cap
Opportunities Fund. If you invest after this date your expenses may be
higher due to fee waivers for these funds expiring one year after such
date.

(2) The Example assumes that you invest on May 9, 2006 for Schroder
International Alpha Fund and Schroder U.S. Opportunities Fund. If you
invest after these dates your expenses may be higher due to fee
waivers for these funds expiring one year after such date.

(3) The Example assumes that you invest on August 30, 2006 for Schroder
International Diversified Value Fund and Schroder Total Return Fixed
Income Fund. If you invest after this date your expenses may be higher
due to fee waivers for these funds expiring one year after such date.

(4) The Example assumes that you invest on February 28, 2006 for Schroder
Enhanced Income Fund, Schroder Municipal Bond Fund and Schroder
Short-Term Municipal Bond Fund. If you invest after this date your
expenses may be higher due to fee waivers for these funds expiring one
year after such date.

(5) The Example assumes that you invest on June 30, 2006 for Schroder
Strategic Bond Fund. If you invest after this date your expenses may
be higher due to a fee waiver for this fund expiring one year after
such date.

Because of Rule 12b-1 fees paid by the Funds, 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.

-48-

--------------------------------------------------------------------------------
PRINCIPAL RISKS OF INVESTING IN THE FUNDS

-49-

-50-

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.

-51-

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. A 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.

-52-

markets or financial resources, or to depend on a small, inexperienced
management group. Securities of smaller companies may trade less
frequently and in lesser volume than more widely held securities and
their values may fluctuate more sharply than other securities. They
may also trade in the over-the-counter market or on a regional
exchange, or may otherwise have limited liquidity. These securities
may therefore be more vulnerable to adverse developments than
securities of larger companies, and the Funds may have difficulty
establishing or closing out their securities positions in smaller
companies at prevailing market prices. Also, there may be less
publicly available information about smaller companies or less market
interest in their securities as compared to larger companies, and it
may take longer for the prices of the securities to reflect the full
value of their issuers' earnings potential or assets.

-53-

o WARRANTS RISK. (SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER
INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED VALUE
FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S. SMALL AND MID
CAP OPPORTUNITIES FUND, AND SCHRODER STRATEGIC BOND FUND). The Funds
may invest in warrants to purchase equity securities. The price,
performance and liquidity of such warrants are typically linked to the
underlying stock. Schroder Strategic Bond 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.

Schroder Emerging Market Equity Fund may invest in Chinese companies.
While companies in China may be subject to limitations on their
business relationships under

-54-

Chinese law, these laws may not be consistent with certain political
and security concerns of the United States. As a result, Chinese
companies may have material direct or indirect business relationships
with governments that are considered state sponsors of terrorism by
the United States government, or governments that otherwise have
policies in conflict with the U.S. government. Investments in such
companies may subject the Schroder Emerging Market Equity Fund to the
risk that these companies' reputation and price in the market will be
adversely affected.

-55-

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 a 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 a 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. A
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.

-56-

o GEOGRAPHIC FOCUS RISK. (SCHRODER EMERGING MARKET EQUITY FUND, SCHRODER
INTERNATIONAL ALPHA FUND, SCHRODER INTERNATIONAL DIVERSIFIED VALUE
FUND, SCHRODER NORTH AMERICAN EQUITY FUND, SCHRODER U.S. OPPORTUNITIES
FUND, SCHRODER U.S. SMALL AND MID CAP OPPORTUNITIES FUND, AND SCHRODER
STRATEGIC BOND FUND). To the extent that a 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. Because the Schroder North American Equity Fund invests
principally in equity securities of North American companies, and the
Schroder U.S. Opportunities Fund and Schroder U.S. Small and Mid Cap
Opportunities Fund invest principally in equity securities of U.S.
companies, their performance may at times be worse than the
performance of other mutual funds that invest more broadly.

-57-

o REAL ESTATE INVESTMENT TRUST RISK. (SCHRODER INTERNATIONAL DIVERSIFIED
VALUE FUND, SCHRODER U.S. OPPORTUNITIES FUND, AND SCHRODER U.S. SMALL
AND MID CAP OPPORTUNITIES FUND). An investment in a REIT may be
subject to risks similar to those associated with direct ownership of
real estate, including losses from casualty or condemnation, and
changes in local and general economic conditions, supply and demand,
interest rates, zoning laws, regulatory limitations on rents, property
taxes and operating expenses. In addition, an investment in a REIT is
subject to additional risks, such as poor performance by the manager
of the REIT, adverse changes to the tax laws or failure by the REIT to
qualify for tax-free pass-through of income under the Code. In
addition, some REITs have limited diversification because they invest
in a limited number of properties, a narrow geographic area, or a
single type of property. Also, the organizational documents of a REIT
may contain provisions that make changes in control of the REIT
difficult and time-consuming. As a shareholder in a REIT a Fund, and
indirectly the Fund's shareholders, would bear its ratable share of
the REIT's expenses and would at the same time continue to pay its own
fees and expenses.

-58-

o FREQUENT TRADING / PORTFOLIO TURNOVER RISK (SCHRODER NORTH AMERICAN
EQUITY FUND, SCHRODER ENHANCED INCOME FUND, SCHRODER STRATEGIC BOND
FUND, AND SCHRODER TOTAL RETURN FIXED INCOME FUND). The length of time
a Fund has held a particular security is not generally a consideration
in investment decisions. The investment policies of a 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 adviser or sub-adviser believes to be temporary disparities in
normal yield relationships between securities. A change in the
securities held by a Fund is known as "portfolio turnover." Portfolio
turnover generally involves some expense to a 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 a Fund's performance.
During periods when a Fund experiences high portfolio turnover rates,
these effects are likely to be more pronounced. The Funds' adviser
currently expects that the portfolio turnover rate for the current
fiscal year will be greater than 400% for Schroder Strategic Bond
Fund, will be approximately 400% for each of Schroder Enhanced Income
Fund and Schroder Total Return Fixed Income Fund, will be
approximately 160% for Schroder North American Equity Fund, will be
approximately 100% for Schroder Emerging Market Equity Fund, and will
not exceed 100% for each of Schroder International Alpha Fund,
Schroder U.S. Opportunities Fund, Schroder U.S. Small and Mid Cap
Opportunities Fund, Schroder Municipal Bond Fund and Schroder
Short-Term Municipal Bond Fund. Consult your tax advisor regarding a
Fund's portfolio turnover rate on your investments.

General obligations. These are backed by the issuer's authority
to levy taxes and are considered an obligation of the issuer.
They are payable from the issuer's general unrestricted revenues,
although payment may depend upon government appropriation or aid
from other governments. These investments may be vulnerable to
legal limits on a government's power to raise revenue or increase
taxes, as well as economic or other developments that can reduce
revenues.

-59-

credit of the state or local government authority issuing the
bonds. Revenue obligations are often subject to greater credit
risk than general obligations debt because they do not rely on
broad taxing powers.

Interest income from private activity bonds may be subject to federal
AMT for individuals. Corporate shareholders will be required to
include all tax-exempt interest dividends in determining their federal
AMT. The Funds may each invest as much as 100% of their net assets in
investments, the income from which may result in liability for federal
AMT both for individual and corporate shareholders. For more
information, including possible state, local and other taxes, contact
your tax advisor.

-60-

-61-

-62-

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

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

-63-

the Fund's shares when you buy into a Fund. If a 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 a 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.

-64-

80% of a 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 a
Fund for investment purposes.

-65-

--------------------------------------------------------------------------------
MANAGEMENT OF THE FUNDS

o MANAGEMENT FEES. For the fiscal year ended October 31, 2005, each of
the following Funds paid aggregate management fees, net of applicable
expense limitations and/or fee waivers, for investment management and
administration services to Schroders at the following annual rates
(based on each Fund's average daily net assets): Schroder North
American Equity Fund: 0.25%; Schroder U.S. Opportunities Fund: 0.73%
(effective May 1, 2006 the Fund's management fee is 1.00%); Schroder
Municipal Bond Fund: 0.02%; and Schroder Short-Term Municipal Bond
Fund: 0.10%. Schroder International Alpha Fund did not pay fees during
the fiscal year ended October 31, 2005 due to an expense limitation
and/or fee waiver in effect during that period (effective April 1,
2006 the Fund's management fee is 0.975% of the Fund's average daily
net assets). Each of the following Funds expects to pay management
fees for investment management services to Schroders at the following
annual rates (based on each Fund's average daily net assets): Schroder
Emerging Market Equity Fund: 1.00%; Schroder International Diversified
Value Fund: 1.00%; Schroder U.S. Small and Mid Cap Opportunities Fund:
1.00%; Schroder Enhanced Income Fund: 0.25%; Schroder Strategic Bond
Fund: 0.75%; and Schroder Total Return Fixed Income Fund: 0.25%. 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 each of Schroder Emerging Market Equity Fund, Schroder
International Alpha Fund, Schroder International Diversified Value
Fund, Schroder North American Equity Fund, and Schroder Strategic Bond
Fund. A discussion regarding the basis for the Trustees' approval of
the investment management agreements for Schroder International Alpha
Fund, Schroder North American Equity Fund, Schroder U.S. Opportunities
Fund, Schroder Total Return Fixed Income Fund, Schroder Municipal Bond
Fund, and Schroder Short-Term Municipal Bond Fund is available in the
Funds' annual report to shareholders for the fiscal year ended October
31, 2005.

-66-

o EXPENSE LIMITATIONS AND WAIVERS. In order to limit the expenses of
certain Funds' Advisor Shares, 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 February 28, 2007 for Schroder Enhanced Income
Fund, Schroder Municipal Bond Fund, and Schroder Short-Term Municipal
Bond Fund, March 31, 2007 for Schroder Emerging Market Equity Fund and
Schroder U.S. Small and Mid Cap Opportunities Fund, May 9, 2007 for
Schroder International Alpha Fund and Schroder U.S. Opportunities
Fund, and June 30, 2007 for the Schroder Strategic Bond Fund, to the
extent that the Total Annual Fund Operating Expenses of each Fund
allocable to its Advisor Shares exceed the following annual rates
(based on the average daily net assets attributable to the Fund's
Advisor Shares): Schroder Emerging Market Equity Fund -- 2.00%;
Schroder International Alpha Fund -- 1.50%; Schroder U.S.
Opportunities Fund -- 1.95%; Schroder U.S. Small and Mid Cap
Opportunities Fund -- 1.65%; Schroder Enhanced Income Fund -- 0.65%;
Schroder Strategic Bond Fund -- 1.40%; Schroder Municipal Bond Fund --
0.80%; and Schroder Short-Term Municipal Bond Fund -- 0.80%. In order
to limit the expenses of each of Schroder International Diversified
Value Fund's and Schroder Total Return Fixed Income Fund's Advisor
Shares, Schroders has contractually agreed to reduce its compensation
(and, if necessary, to pay other Fund expenses) until August 30, 2007
to the extent that the Total Annual Fund Operating Expenses of a Fund
(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) allocable to its Advisor Shares exceed the following annual
rates (based on the average daily net assets attributable to each
Fund's Investor shares): Schroder International Diversified Value Fund
-- 1.50%; and Schroder Total Return Fixed Income Fund -- 0.65%.

-67-

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

Schroder Emerging James Gotto Portfolio Manager Inception Mr. Gotto is a Portfolio
Market Equity Fund (March 31, 2006) Manager of SIMNA Ltd. He
has been an employee of
SIMNA Ltd. since 1991.

Schroder Emerging Waj Hashmi, CFA Portfolio Manager Inception Mr. Hashmi is a Portfolio
Market Equity Fund (March 31, 2006) Manager of SIMNA Ltd. He
has been an employee of
SIMNA Ltd. since 2000.

Schroder Emerging Robert Davy Portfolio Manager Inception Mr. Davy is a Portfolio
Market Equity Fund (March 31, 2006) Manager of SIMNA Ltd. He
has been an employee of
SIMNA Ltd. since 1986.

-68-

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

-69-

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

Inception
(September
2003) (Schroder
North American
Equity Fund)

Schroder U.S. Jenny B. Jones Lead Portfolio 2003 (Schroder Ms. Jones is an Executive
Opportunities Fund and Manager U.S. Vice President of Schroders.
Schroder U.S. Small Opportunities She has been an employee
and Mid Cap Fund) of Schroders since 2003.
Opportunities Fund Formerly, portfolio manager
Inception and Executive Director,
(March 31, 2006) Morgan Stanley Investment
(Schroder U.S. Advisors Inc.
Small and Mid
Cap
Opportunities
Fund)

-70-

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

Schroder Enhanced David Harris Portfolio Manager Inception Mr. Harris is a Senior Vice
Income Fund and (December 2004) President of Schroders. He
Schroder Total Return for each Fund has been an employee of
Fixed Income Fund Schroders since
November 1992.
Schroder Enhanced Wesley A. Portfolio Manager Inception Mr. Sparks is a Senior Vice
Income Fund and Sparks, CFA (December 2004) President of Schroders. He
Schroder Total Return for each Fund has been an employee of
Fixed Income Fund Schroders since
December 2000. Formerly,
portfolio manager at Aeltus
Investment Management.
Schroder Enhanced Gregg T. Moore, Portfolio Manager Inception Mr. Moore is a Vice President
Income Fund and CFA (December 2004) of Schroders and has been
Schroder Total Return for each Fund an employee of Schroders
Fixed Income Fund since June 2001. Formerly,
quantitative analyst at Aeltus
Investment Management.
Schroder Enhanced Matthew J. Portfolio Manager Inception Mr. Murphy is a Vice
Income Fund and Murphy (December 2004) President of Schroders. He
Schroder Total Return for each Fund has been an employee of
Fixed Income Fund Schroders since July 2004.
Formerly, Managing Director
at MONY Capital
Management from
February 2002 to July 2004.
Schroder Strategic Robert Michele, Global Head of Inception (June Mr. Michele is Global Head of
Bond Fund CFA Fixed Income 30, 2006) Fixed Income of Schroders.
He has been an employee of
Schroders since 1998.
Schroder Strategic Louise Davies Portfolio Manager Inception (June Ms. Davies is a Portfolio
Bond Fund 30, 2006) Manager of Schroders. She
has been an employee of
Schroders since 1999.
Schroder Municipal David Baldt, CFA Portfolio Manager Inception Mr. Baldt is an Executive
Bond Fund and (December 2003) Vice President of Schroders.
Schroder Short-Term for each Fund He has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly, Managing Director
of Deutsche Asset
Management (formerly
Morgan Grenfell).
Schroder Municipal Daniel Scholl Portfolio Manager Inception Mr. Scholl is a Senior Vice
Bond Fund and (December 2003) President of Schroders. He
Schroder Short-Term for each Fund has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly a Director and
Portfolio Manager of
Deutsche Asset Management
(formerly Morgan Grenfell).

-71-

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

Schroder Municipal Susan Beck Portfolio Manager Inception Ms. Beck is a First Vice
Bond Fund and (December 2003) President of Schroders. She
Schroder Short-Term for each Fund has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly, a Vice President
and Portfolio Manager of
Deutsche Asset Management
(formerly Morgan Grenfell).
Schroder Municipal Ted Manges Portfolio Manager Inception Mr. Manges is a First Vice
Bond Fund and (December 2003) President of Schroders. He
Schroder Short-Term for each Fund has been an employee of
Municipal Bond Fund Schroders since fall 2003.
Formerly, Vice President of
Deutsche Asset Management
from 1999 to 2003, and
Manager of Trading and
Sales, Commerce Capital
Markets from 1995 to 1999.

-72-

--------------------------------------------------------------------------------
HOW THE FUNDS' SHARES ARE PRICED

Each 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. Each 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 Trusts expect 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 Funds' 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 sale 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 shall be 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. Certain Funds 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 Funds 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. Schroder Emerging Market
Equity Fund, Schroder International Alpha Fund, Schroder International
Diversified Value Fund, Schroder Strategic Bond Fund, and Schroder Total
Return Fixed Income 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. 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 a Fund's Investor Shares may
differ from that of its Advisor Shares due to differences in the expenses
of Investor Shares and Advisor Shares.

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

You may purchase Advisor Shares of each Fund directly from the applicable
Trust (through Schroder Fund Advisors Inc., the distributor of the Trusts'
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
applicable 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 Funds. 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.

Each Fund sells its Advisor Shares at their net asset value next determined
after the applicable 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 applicable Fund's transfer agent or
the Fund). In order for you to receive a 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). Each Trust
reserves the right to reject any order to purchase Advisor Shares of any of
its Funds. Each 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 Funds. Such brokers or financial
institutions may designate other intermediaries to accept purchase orders
on behalf of the Funds. For purposes of pricing, a 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 Trusts'
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.

-74-

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

INITIAL INVESTMENT ADDITIONAL INVESTMENTS
------------------ ----------------------
REGULAR ACCOUNTS $2,500 $1,000
TRADITIONAL AND ROTH IRAS $2,500 $1,000

Each 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 Funds 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 Funds 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 Funds do not issue share certificates.

Each Trust may suspend the offering of Advisor Shares of its Funds for any
period of time. Each Trust may change any investment minimum from time to
time.

Purchases by check. You may purchase Advisor Shares of a 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 30 Dan Road
Canton, MA 02021

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

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

-75-

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 a 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 a 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 Funds value securities accepted
by Schroders in the same manner as are the Funds' portfolio securities as
of the time of the next determination of a Fund's net asset value. Although
the Funds seek to determine the fair value of securities contributed to a
Fund, any valuation that does not reflect fair value may dilute the
interests of the purchasing shareholder or the other shareholders of the
Funds. All rights reflected in the market price of accepted securities at
the time of valuation become the property of the Funds and must be
delivered to the Funds 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

-76-

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 a 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.

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HOW TO SELL SHARES

When you may redeem. You may sell your Advisor Shares back to a 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. Each 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 BFDS 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 Funds. Such brokers or financial
institutions may designate other intermediaries to accept redemption orders
on behalf of the Funds. For purposes of pricing, a 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 Trusts'
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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Each 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. Each Trust generally sends payment for shares on the business
day after a request is received. In case of emergencies, each 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 a Fund charges.

Involuntary redemptions. If, because of your redemptions, your account
balance for any of the Funds falls below a minimum amount set by the
Trustees (presently $2,000), a Trust may choose to redeem your Advisor
Shares in the Funds 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.
Each Trust may also redeem Advisor Shares if you own shares of the Funds
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.

Redemptions in kind. The Trusts do not expect to redeem Advisor Shares in
kind under normal circumstances. If a 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. Schroder Capital Funds (Delaware) has agreed to redeem Advisor Shares
of Schroder International Alpha Fund and Schroder U.S. Opportunities Fund
solely in cash up to the lesser of $250,000 or 1% of the Fund's net assets
attributable to Advisor Shares during any 90-day period for any one
shareholder. In consideration of the best interests of the remaining
shareholders, Schroder Capital Funds (Delaware) may pay any redemption
proceeds exceeding this amount for any of these Funds in whole or in part
by a distribution in kind of securities held by the applicable Fund in lieu
of cash. Schroder Global Series Trust and Schroder Series Trust may pay
redemption proceeds in any amount with respect to Schroder Emerging Market
Equity Fund, Schroder International Diversified Value Fund, Schroder North
American Equity Fund, Schroder U.S. Small and Mid Cap Opportunities Fund,
Schroder Enhanced Income Fund, Schroder Strategic Bond Fund, Schroder Total
Return Fixed Income Fund, Schroder Municipal Bond Fund, or Schroder
Short-Term Municipal Bond Fund in whole or in part by a distribution in
kind of liquid securities held by the applicable Fund in lieu of cash.

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client representative or your financial intermediary. Each 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 Trusts 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.

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 a 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 Schroder Emerging Market Equity
Fund, Schroder International Diversified Value Fund, Schroder International
Alpha Fund, Schroder U.S. Opportunities Fund, Schroder U.S. Small and Mid
Cap Opportunities Fund, and Schroder Strategic Bond 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 Trusts 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
Trusts 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 PLANS

Each 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 applicable 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. Each 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, a Fund may make payments at an
annual rate of up to 0.25% (0.35% for Schroder North American Equity Fund)
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 a Fund's assets on an ongoing basis, over
time these fees will increase the cost of an investment in Advisor Shares
of a Fund and may cost you more than paying other types of sales charges.

In addition, a 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, a 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

Shares begin to earn dividends on the first business day following the day
of purchase. Shares earn dividends through the date of redemption.

YOU CAN CHOOSE FROM FOUR DISTRIBUTION OPTIONS:

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

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

o For each Fund except Schroder North American Equity Fund, receive
distributions from net investment income in additional Advisor Shares
of your Fund while receiving capital gain distributions in cash; or

o 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 a Fund will be reinvested in Advisor Shares of that 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

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PAYMENT OF FEES

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TAXES

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excess of net long-term capital losses, in each case to the extent such
distributions are properly designated by the Funds.

DERIVATIVES. A 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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FINANCIAL HIGHLIGHTS

The financial highlights below are intended to help you understand
financial performance of each of the Schroder Enhanced Income Fund,
Schroder Total Return Fixed Income Fund, Schroder Municipal Bond Fund, and
Schroder Short-Term Municipal Bond Fund for the past five years or, if more
recent, since their inception. Certain information reflects financial
results for a single Fund share. The total returns represent the total
return for an investment in Advisor Shares of a Fund, assuming reinvestment
of all dividends and distributions.

Financial highlights for the Schroder Total Return Fixed income Fund for
the six months ended April 30, 2006 are unaudited. For all periods through
the fiscal year ended October 31, 2005, the financial highlights have been
audited by PricewaterhouseCoopers LLP, independent registered public
accountant to the Funds. The audited financial statements for the Funds and
the related independent registered public accountant's report are contained
in the Funds' combined Annual Report and are incorporated by reference into
each Fund's SAI. The unaudited financial statements for the Schroder Total
Return Fixed Income Fund are contained in its Semi-Annual Report, and are
incorporated by reference into its SAI. Copies of the Annual and
Semi-Annual Reports may be obtained without charge by writing the Funds at
P.O. Box 8507, Boston, Massachusetts 02266, or by calling (800) 464-3108.
The Funds' Annual and Schroder Total Return Income Fund's Semi-Annual
Reports are also available on the following website: www.schroderfunds.com.

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FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGH THE PERIOD ENDED OCTOBER 31 (AND THE PERIOD ENDED APRIL 30, 2006
(UNAUDITED) WITH RESPECT TO THE SCHRODER TOTAL RETURN FIXED INCOME FUND)

NET REALIZED
AND DISTRIBUTIONS
UNREALIZED FROM NET
GAINS GAIN
(LOSSES)ON ON
NET ASSET NET INVESTMENTS DIVIDENDS INVESTMENTS
VALUE, INVESTMENT AND FOREIGN TOTAL FROM FROM NET AND FOREIGN DISTRIBUTIONS
BEGINNING OF INCOME CURRENCY INVESTMENT INVESTMENT CURRENCY FROM RETURN
PERIOD (LOSS) TRANSACTIONS OPERATIONS INCOME TRANSACTIONS OF CAPITAL
------------ ---------- ------------- ---------- ---------- -------------- -------------

ENHANCED
INCOME FUND
2005(b) $10.00 $ 0.23 $(0.04) $0.19 $(0.23) $ -- $--
TOTAL RETURN
FIXED INCOME
FUND*
2006(c) $ 9.85 $ 0.22 $(0.16) $0.06 $(0.22) $(0.02) $--
2005(b) 10.00 0.28 (0.15) 0.13 (0.28) -- --
MUNICIPAL
BOND FUND
2005 $10.11 $ 0.34 $(0.14) $0.20 $(0.34) $ -- $--
2004(d) 10.00 0.21 0.11 0.32 (0.21) -- --
SHORT-TERM
MUNICIPAL
BOND FUND
2005 $ 9.97 $ 0.27 $(0.05) $0.22 $(0.27) $ -- $--
2004(d) 10.00 0.13 (0.03) 0.10 (0.13) -- --

* Schroder U.S. Core Fixed Income Fund was renamed Schroder Total Return
Fixed Income Fund effective May 15, 2006.

(b) Commenced operations on December 31, 2004. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.

(c) For the six months ended April 30, 2006 (unaudited). All ratios for the
period have been annualized, except for the Portfolio Turnover Rate.

(d) Commenced operations on December 31, 2003. All ratios for the period have
been annualized, except for the Portfolio Turnover Rate.

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RATIO OF NET
INVESTMENT
RATIO OF RATIO OF INCOME
EXPENSES TO EXPENSES TO (LOSS)
AVERAGE NET AVERAGE NET TO AVERAGE
ASSETS ASSETS NET ASSETS
(INCLUDING (EXCLUDING (INCLUDING
NET ASSETS, WAIVERS, WAIVERS, WAIVERS,
NET ASSET END OF REIMBURSE- REIMBURSE- REIMBURSE- PORTFOLIO
TOTAL VALUE, END TOTAL PERIOD MENTS AND MENTS AND MENTS AND TURNOVER
DISTRIBUTIONS OF PERIOD RETURN(a) (000) OFFSETS) OFFSETS) OFFSETS) RATE
------------- ---------- --------- ----------- ----------- ------------ ------------ ---------

ENHANCED
INCOME FUND
2005(b) $(0.23) $ 9.96 1.96% $1,029 0.65% 1.07% 2.69% 61%
TOTAL RETURN
FIXED INCOME
FUND*
2006(c) $(0.24) $ 9.67 0.59% $1,109 0.65% 2.35% 4.52% 97%
2005(b) (0.28) 9.85 1.30 1,013 0.65 3.30 3.35 571
MUNICIPAL
BOND FUND
2005 $(0.34) $ 9.97 1.99% $8,375 0.80% 1.18% 3.52% 27%
2004(d) (0.21) 10.11 3.21 1,888 0.80 1.64 2.49 46
SHORT-TERM
MUNICIPAL
BOND FUND
2005 $(0.27) $ 9.92 2.21% $3,112 0.80% 1.10% 2.80% 36%
2004(d) (0.13) 9.97 1.05 1,320 0.80 1.44 1.68 17

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USA PATRIOT ACT

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