497K3B 1 inteq-fndprofile.txt TRP INTERNATIONAL EQUITY FUNDS January 1, 2002 FUND PROFILE T. ROWE PRICE International Funds--Equity Portfolios A choice of global, international, and regional stock funds for investors seeking long-term capital growth by diversifying beyond U.S. borders. This profile summarizes key information about the funds that is included in the funds' prospectus. The funds' prospectus includes additional information about the funds, including a more detailed description of the risks associated with investing in each fund that you may want to consider before you invest. You may obtain the prospectus and other information about the funds at no cost by calling 1-800-638-5660, or by visiting our Web site at www.troweprice.com. TROWEPRICELOGO 1 1 FUND PROFILE --------------------------------------------------------- What are each fund's objectives and principal investment strategies? All funds (excluding International Growth & Income Fund): The funds use a growth investing approach in their individual investment strategies. Growth Investing T. Rowe Price International, Inc. ("T. Rowe Price International") employs in-depth fundamental research in an effort to identify companies capable of achieving and sustaining above-average, long-term earnings growth. We seek to purchase such stocks at reasonable prices in relation to present or anticipated earnings, cash flow, or book value, and valuation factors often influence our allocations among large-, mid-, or small-cap shares. While we invest with an awareness of the global economic backdrop and our outlook for industry sectors and individual countries, bottom-up stock selection is the focus of our decision-making. Country allocation is driven largely by stock selection, though we may limit investments in markets that appear to have poor overall prospects. In selecting stocks, we generally favor companies with one or more of the following characteristics: . leading market position; . attractive business niche; . strong franchise or monopoly; . technological leadership or proprietary advantages; . seasoned management; . earnings growth and cash flow sufficient to support growing dividends; and . healthy balance sheet with relatively low debt. Worldwide funds: Emerging Markets Stock Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of companies located (or with primary operations) in emerging markets. Strategy: Normally, the fund expects to invest substantially all of its assets across emerging markets in Latin America, Asia, Europe, Africa, and the Middle East. Stock selection reflects a growth style. (See Growth Investing above.) An emerging market includes any country defined as emerging or developing by the International Bank for Reconstruction and Development (World Bank), the International Finance Corporation, or the United Nations. Countries in which the fund may invest are listed below and others will be added as opportunities develop: 2 FUND PROFILE --------------------------------------------------------- .Asia: China, Hong Kong, India, Indonesia, South Korea, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam. . Latin America: Argentina, Belize, Brazil, Chile, Colombia, Mexico, Panama, Peru, and Venezuela. . Europe: Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovakia, Slovenia, and Turkey. . Africa and the Middle East: Botswana, Egypt, Israel, Jordan, Mauritius, Morocco, Nigeria, South Africa, Tunisia, and Zimbabwe. Global Stock Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of established companies throughout the world, including the U.S. Strategy: We will diversify broadly by investing in a variety of industries in developed and, to a lesser extent, emerging markets. Normally, the fund will invest in at least five countries, one of which will be the U.S. Stock selection reflects a growth style. (See Growth Investing on page 1.) While we can purchase stocks without regard to a company's market capitalization (shares outstanding multiplied by share price), investments will generally be in large and, to a lesser extent, medium-sized companies. The percentage of assets invested in U.S. and foreign stocks will vary over time according to the manager's outlook. International Discovery Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of rapidly growing, small to medium-sized companies outside the U.S. Strategy: We expect to invest substantially all of the fund's assets outside the U.S. and to diversify broadly among developed and emerging countries throughout the world. Stock selection reflects a growth style. (See Growth Investing on page 1.) The fund will emphasize small to medium-sized companies. Depending on conditions, the fund's portfolio should be composed of at least 10 countries and 100 different companies. International Growth & Income Fund Objective: The fund seeks long-term growth of capital and reasonable income through investments primarily in the common stocks of well-established, dividend-paying non-U.S. companies. Strategy: We expect to invest substantially all of the fund's assets outside the U.S. and to diversify broadly, primarily among the world's developed countries. The fund will invest primarily (at least 65% of total assets) in the stocks of dividend-paying, large, well-established companies that have favorable prospects for capital appreciation, as determined by T. Rowe Price International. Investments in emerging markets will be modest and limited to more mature developing countries. 3 3 FUND PROFILE --------------------------------------------------------- In selecting common stocks, we combine proprietary quantitative analysis with bottom-up research and a global, regional, and country outlook. Our investing style reflects both a growth and a value orientation, although in general we place less emphasis on above-average earnings growth and more on "value" characteristics such as above-average dividend yields or below-average price/earnings or price/book value ratios. Valuation factors often influence our allocations among large-, mid-, or small-cap shares. Country allocation is driven largely by stock selection, though we may limit investments in markets that appear to have poor overall prospects. International Stock Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of established, non-U.S. companies. Strategy: We expect to invest substantially all of the fund's assets outside the U.S. and to diversify broadly among developed and emerging countries throughout the world. Stock selection reflects a growth style. (See Growth Investing on page 1.) We may purchase the stocks of companies of any size, but our focus will typically be on large and, to a lesser extent, medium-sized companies. Regional or country funds: Emerging Europe & Mediterranean Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of companies in the emerging market countries of Europe and the Mediterranean region. Strategy: Normally, we expect to invest substantially all of the fund's assets in the emerging markets of Europe, including Eastern Europe and the former Soviet Union, and the Mediterranean region, including the Middle East and North Africa. Normally, seven to 12 countries will be represented in the portfolio. The fund may invest in common stocks in the countries listed below, as well as others as their markets develop: . Primary Emphasis: Croatia, Czech Republic, Egypt, Estonia, Greece, Hungary, Israel, Poland, Russia, and Turkey. . Others: Bulgaria, Jordan, Latvia, Lebanon, Lithuania, Morocco, Romania, Slovakia, Slovenia, and Tunisia. We may purchase the stocks of companies of any size, but our focus will typically be on large and, to a lesser extent, medium-sized companies. The fund seeks to take advantage of opportunities arising from such trends as privatization, the reduction of trade barriers, and progress toward Economic and Monetary Union in Europe. The fund is registered as "nondiversified," meaning it may invest a greater portion of assets in a single company and own more of the company's 4 FUND PROFILE --------------------------------------------------------- voting securities than is permissible for a "diversified" fund. Depending on conditions, the fund's portfolio should be composed of at least 30 to 50 different companies. (See Growth Investing on page 1.) European Stock Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of European companies. Current income is a secondary objective. Strategy: Normally, at least five countries will be represented in the portfolio. The fund expects to invest substantially all of its assets in the countries listed below, as well as others as their markets develop: . Primary Emphasis: Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and United Kingdom. . Others: Belgium, Czech Republic, Greece, Hungary, Israel, Poland, and Turkey. Stock selection reflects a growth style. (See Growth Investing on page 1.) We also seek to take advantage of opportunities arising from such trends as privatization, the reduction of trade barriers, progress toward economic and monetary union, and the potential growth of the emerging economies of Eastern Europe. Japan Fund Objective: The fund seeks long-term growth of capital through investments in common stocks of companies located (or with primary operations) in Japan. Strategy: Normally, the fund expects to invest substantially all of its assets across a wide range of Japanese industries and companies. Stock selection reflects a growth style. (See Growth Investing on page 1.) Latin America Fund Objective: The fund seeks long-term growth of capital through investments primarily in the common stocks of companies located (or with primary operations) in Latin America. Strategy: Normally, we expect to invest substantially all of the fund's assets in Latin American companies. At least four countries should be represented at any time. Investments may be made in the countries below, as well as others as their markets develop: . Primary Emphasis: Argentina, Brazil, Chile, Mexico, Peru, and Venezuela. . Others: Belize, Colombia, Ecuador, and Guatemala. Stock selection reflects a growth style. (See Growth Investing on page 1.) We may make substantial investments (at times more than 25% of total assets) in the telephone companies of various Latin American countries. These utilities play a critical role in a country's economic development. The fund is registered as "nondiversified," meaning it may invest a greater portion of assets in a single 5 5 FUND PROFILE --------------------------------------------------------- company and own more of the company's voting securities than is permissible for a "diversified" fund. In some markets, such as Brazil, the fund may purchase preferred stock because of its liquidity advantage over common stock. New Asia Fund Objective: The fund seeks long-term growth of capital through investments in companies located (or with primary operations) in Asia (excluding Japan). Strategy: Normally, the fund expects to invest substantially all of its assets in the countries listed below, as well as others as their markets develop: . Primary Emphasis: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, and Thailand. . Others: Pakistan and Vietnam. Stock selection reflects a growth style. (See Growth Investing on page 1.) The fund is registered as "nondiversified," meaning it may invest a greater portion of assets in a single company and own more of the company's voting securities than is permissible for a "diversified" fund. Table 1 International Funds Comparison Guide
Expected risk Geographic Company relative to Fund focus emphasis one another ----- Emerging Europe & Europe and the All sizes Mediterranean Mediterranean region -------------------------------------------------------------- Emerging Markets Worldwide All sizes Stock (excluding U.S.) -------------------------------------------------------------- European Stock Europe All sizes (including Eastern Europe) -------------------------------------------------------------- Global Stock Worldwide Large, (including U.S.) well established -------------------------------------------------------------- International Worldwide Small to Discovery (excluding U.S.) medium-sized -------------------------------------------------------------- International Growth Worldwide Large, Moderate & Income (excluding U.S.) well established -------------------------------------------------------------- International Stock Worldwide Large, (excluding U.S.) well established -------------------------------------------------------------- Japan Japan All sizes -------------------------------------------------------------- Latin America Latin America All sizes -------------------------------------------------------------- New Asia Far East and Pacific Basin All sizes (excluding Japan) -------------------------------------------------------------------------------------------
Normally, each fund (other than Latin America) invests primarily (at least 65% of total assets) in common stocks. Normally, the Latin America Fund will invest at least 65% of its total assets in equity securities, with a majority in common stocks. The funds may also purchase other securities, including futures and options, in keeping with each fund's objectives. 6 FUND PROFILE --------------------------------------------------------- Each fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities. Further information about each fund's investments, including a review of market conditions and fund strategies and their impact on performance, is available in the annual and semiannual shareholder reports. To obtain free copies of these documents, call 1-800-638-5660. What are the main risks of investing in the funds? As with all stock funds, each fund's share price can fall because of weakness in one or more of its primary equity markets, a particular industry, or specific holdings. Stock markets can decline for many reasons, including adverse political or economic developments, changes in investor psychology, or heavy institutional selling. The prospects for an industry or company may deteriorate because of a variety of factors, including disappointing earnings or changes in the competitive environment. In addition, our assessment of companies held in a fund may prove incorrect, resulting in losses or poor performance even in rising markets. The risk profile of the funds varies with the investment style they pursue, their geographic focus, and whether they invest in developed markets, emerging markets, or both. Even investments in countries with highly developed economies are subject to significant risks. For example, Japanese stocks were in a steep decline for much of the 1990s. Funds that invest overseas generally carry more risk than funds that invest strictly in U.S. assets. Some particular risks affecting these funds include the following: .Currency risk This refers to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency. The overall impact on a fund's holdings can be significant, unpredictable, and long-lasting depending on the currencies represented in the portfolio and how each one appreciates or depreciates in relation to the U.S. dollar, and whether currency positions are hedged. Under normal conditions, the funds do not engage in extensive foreign currency hedging programs. Further, exchange rate movements are volatile and it is not possible to effectively hedge the currency risks of many developing countries. .Geographic risk (Japan and regional funds) Funds that are less diversified across geographic regions, countries, industries, or individual companies are generally riskier than more diversified funds. Thus, for example, investors in the Japan Fund are fully exposed to that country's economic cycles, stock market valuations, and currency exchange rates, which could increase its risks compared with a more diversified fund. In addition, investors in Japan should be aware of specific problems, including tax laws that discourage consumer spending and dampen growth, deflation, a banking system burdened with bad loans, and the government's unsatisfactory progress on effecting credible solutions to these 7 7 FUND PROFILE --------------------------------------------------------- problems. The economies and financial markets of certain regions - such as Latin America, Asia, and Europe and the Mediterranean region-can be interdependent and may decline all at the same time. . Emerging market risk (Emerging Europe & Mediterranean, Emerging Markets Stock, Latin America, New Asia; other funds to a lesser degree, except Japan) Investments in emerging markets are subject to abrupt and severe price declines. The economic and political structures of developing nations, in most cases, do not compare favorably with the U.S. or other developed countries in terms of wealth and stability, and their financial markets often lack liquidity. These economies are less well developed and can be overly reliant on particular industries and more vulnerable to the ebb and flow of international trade, trade barriers, and other protectionist or retaliatory measures. Certain countries have legacies of hyperinflation and currency devaluations, particularly Russia and many Latin American nations, and more recently many Asian countries. Governments in many emerging market countries participate to a significant degree in their economies and securities markets. Investments in countries or regions that have recently begun moving away from central planning and state-owned industries toward free markets should be regarded as speculative. While some countries have made progress in economic growth, liberalization, fiscal discipline, and political and social stability, there is no assurance these trends will continue. Some countries have histories of instability and upheaval that could cause their governments to act in a detrimental or hostile manner toward private enterprise or foreign investment. Significant external risks currently affect some emerging countries. The volatility of emerging markets may be heightened by the actions of a few major investors. For example, substantial increases or decreases in cash flows of mutual funds investing in these markets could significantly affect local stock prices and, therefore, fund share prices. These factors make investing in such countries significantly riskier than in other countries and any one of them could cause a fund's share price to decline. .Other risks of foreign investing Risks can result from varying stages of economic and political development, differing regulatory environments, trading days, and accounting standards, and higher transaction costs of non-U.S. markets. Investments outside the United States could be subject to governmental actions such as capital or currency controls, nationalization of a company or industry, expropriation of assets, or imposition of high taxes. .Small and medium-sized company risk (International Discovery; others to a lesser degree) To the extent each fund invests in small- and mid-capitalization stocks, it is likely to be more volatile than a fund that invests only in large companies. Small and medium-sized companies are generally riskier because they may have 8 FUND PROFILE --------------------------------------------------------- limited product lines, capital, and managerial resources. Their securities may trade less frequently and with greater price swings. .Nondiversified status (Emerging Europe & Mediterranean, Latin America, and New Asia) There is additional risk with each fund because it is nondiversified and thus can invest more of its assets in a smaller number of companies. Thus, for example, poor performance by a single large holding of a fund would adversely affect fund performance more than if the fund held a larger number of companies. .Futures/options risk To the extent each fund uses futures and options, it is exposed to additional volatility and potential losses. As with any mutual fund, there can be no guarantee the funds will achieve their objectives. .Each fund's share price may decline, so when you sell your shares, you may lose money. How can I tell which fund is most appropriate for me? Consider your investment goals, your time horizon for achieving them, and your tolerance for the inherent risk of common stock and international investments. Your decision should take into account whether you have any other foreign stock investments. If not, you may wish to invest in a widely diversified fund to gain the broadest exposure to global opportunities. A diversified emerging markets fund may be an appropriate part of your portfolio if you are supplementing existing holdings primarily in developed foreign markets. If you seek to supplement a diversified portfolio with a concentrated investment, a regional or single-country fund may be appropriate. Each fund can be used in both regular and tax-deferred accounts, such as IRAs. .The fund or funds you select should not represent your complete investment program or be used for short-term trading purposes. How has each fund performed in the past? The bar charts showing calendar year returns and the average annual total return table indicate risk by illustrating how much returns can differ from one year to the next and over time. Fund past performance is no guarantee of future returns. The funds can also experience short-term performance swings, as shown by the best and worst calendar quarter returns during the years depicted in the charts. 9 9 FUND PROFILE ---------------------------------------------------------
Calendar Year Total Returns Fund "92" "93" "94" "95" "96" "97" "98" "99" "00" "01" ------------------------------------------------------------------------------------------------ Emerging Europe & Mediterranean -- -- -- -- -- -- -- -- -- -7.67 Emerging Markets Stock -- -- -- -- 11.82 1.23 -28.75 87.44 -26.35 -5.69 European Stock -5.56 27.24 4.06 21.86 25.87 17.01 25.82 19.70 -6.66 -20.65 Global Stock -- -- -- -- 20.01 13.23 22.50 28.76 -7.99 -15.39 International Discovery -9.08 49.85 -7.63 -4.36 13.87 -5.67 6.12 155.03 -15.60 -24.64 International Growth & Income -- -- -- -- -- -- -- 19.62 -4.31 -17.57 International Stock -3.47 40.11 -0.76 11.39 15.99 2.70 16.14 34.60 -17.09 -22.02 Japan -13.40 20.61 15.09 -3.12 -10.99 -22.08 9.16 112.71 -37.22 -32.25 Latin America -- -- -15.92 -18.70 23.35 31.88 -35.43 59.38 -11.20 -0.23 New Asia 11.24 78.76 -19.15 3.75 13.51 -37.13 -11.11 99.88 -30.79 -10.00 ------------------------------------------------------------------------------------------------
10 FUND PROFILE --------------------------------------------------------- Emerging Europe & Mediterranean Fund Quarter ended Total return Best quarter 12/31/01 36.33% Worst quarter 9/30/01 -22.66% Emerging Markets Stock Fund Quarter ended Total return Best quarter 12/31/99 44.10% Worst quarter 9/30/98 -25.20% European Stock Fund Quarter ended Total return Best quarter 12/31/99 20.48% Worst quarter 3/31/01 -17.05% Global Stock Fund Quarter ended Total return Best quarter 12/31/98 21.36% Worst quarter 9/30/01 -14.54% International Discovery Fund Quarter ended Total return Best quarter 12/31/99 57.19% Worst quarter 9/30/01 -19.26% 11 11 FUND PROFILE --------------------------------------------------------- International Growth & Income Fund Quarter ended Total return Best quarter 12/31/99 11.81% Worst quarter 9/30/01 -12.83% International Stock Fund Quarter ended Total return Best quarter 12/31/99 24.70% Worst quarter 3/31/01 -15.50% Japan Fund Quarter ended Total return Best quarter 12/31/98 25.17% Worst quarter 12/31/00 -22.58% Latin America Fund Quarter ended Total return Best quarter 12/31/99 41.32% Worst quarter 9/30/98 -29.13% New Asia Fund Quarter ended Total return Best quarter 12/31/99 42.04% Worst quarter 12/31/97 -27.05% Table 2 Average Annual Total Returns
Periods ended 12/31/2001 Shorter of 10 years 1 year 5 years or since inception Inception date ------------------------ Emerging Europe & Mediterranean Fund -7.67% -- -23.11% 8/31/00 MSCI Emerging Markets Europe and Middle East Index -16.06 -- -23.39 Emerging Markets Stock Fund -5.69% -1.25% 1.84% 3/31/95 MSCI Emerging Markets Free Index -2.37 -5.74 -2.32 Lipper Emerging Markets Funds Average -2.94 -4.67 -0.96 European Stock Fund -20.65% 5.47% 9.61% 2/28/90 MSCI Europe Index -19.64 6.56 10.04 Lipper European Region Funds Average -22.34 5.50 8.73 Global Stock Fund -15.39% 6.81% 8.90% 12/29/95 MSCI World Index -16.52 5.74 7.07 Lipper Global Funds -17.37 5.73 7.51 Average ------------------------------------------------------------------------------- International Discovery Fund -24.64% 10.18% 8.33% 12/30/88 MSCI EAFE Index -21.21 1.17 4.76 MSCI EAFE Small-Cap Index -14.29 -6.17 0.44 Salomon Smith Barney Non-U.S. Extended Market Index -15.70 -0.01 0.03 Lipper International Small-Cap Funds Average -21.82 6.52 7.44 International Growth & Income Fund -17.57% -- -1.38% 12/21/98 MSCI EAFE Index -21.21 -- -4.79 Lipper International Funds Average -21.71 -- -2.37/a/ International Stock Fund -22.02% 0.75% 6.05% 5/9/80 MSCI EAFE Index -21.21 1.17 4.76 Lipper International Funds Average -21.71 1.94 6.17 Japan Fund -32.25% -5.10% -2.23% 12/30/91 TSE First Section Index -19.59 -6.84 -4.95 TSE Second Section Index -23.37 -3.74 -3.99 MSCI Japan Index -29.28 -7.91 -3.78 Lipper Japanese Funds Average -30.35 -3.73 -2.59 Latin America Fund -0.23% 3.75% 0.23% 12/29/93 MSCI EMF Latin American Index -0.39 2.44 2.40 Lipper Latin America Funds Average -4.70 1.42 -0.36 New Asia Fund -10.00% -7.00% 2.79% 9/28/90 MSCI All Country Far East Free Ex-Japan Index -2.08 -11.86 2.78 Lipper Pacific Ex-Japan Funds -1.79 -8.19 2.65 Average -------------------------------------------------------------------------------
12 FUND PROFILE --------------------------------------------------------- These figures include changes in principal value, reinvested dividends, and capital gain distributions, if any. /a/ Since 12/31/98 What fees or expenses will I pay? The funds are 100% no load. The Emerging Europe & Mediterranean, Emerging Markets Stock, International Discovery, and Latin America Funds impose a 2% redemption fee, payable to the funds, on shares purchased and held less than one year. There are no other fees or charges to buy or sell fund shares, reinvest dividends, or exchange into other T. Rowe Price funds. There are no 12b-1 fees. Redemption proceeds of less than $5,000 sent by wire are subject to a $5 fee paid to the fund. 13 13 FUND PROFILE --------------------------------------------------------- Table 3 Fees and Expenses of the Funds
Shareholder fees (fees paid directly from your Annual fund operating expenses/a/ investment) (expenses that are deducted from fund assets) Total annual Fee waiver/ Fund Redemption Management Other fund operating expense Net fees fee expenses expenses reimbursement expenses ----- ----------------------------- Emerging Europe & 2% 1.07% 1.81%/c/ 2.88% 1.13% 1.75% Mediterranean ------------------------------------------------------------------------------ Emerging Markets Stock /b/ 2% 1.07 0.43 1.50 -- 1.50 ------------------------------------------------------------------------------ European Stock -- 0.82 0.20 1.02 -- 1.02 ------------------------------------------------------------------------------ Global Stock /b/ -- 0.67 0.54 1.21 0.01 1.20 ------------------------------------------------------------------------------ International Discovery 2% 1.07 0.20 1.27 -- 1.27 ------------------------------------------------------------------------------ International -- 0.67 2.43 3.10 1.85 1.25 Growth & Income/b/ ------------------------------------------------------------------------------ International Stock -- 0.67 0.17 0.84 -- 0.84 ------------------------------------------------------------------------------ Japan -- 0.82 0.27 1.09 -- 1.09 ------------------------------------------------------------------------------ Latin America 2% 1.07 0.39 1.46 -- 1.46 ------------------------------------------------------------------------------ New Asia -- 0.82 0.26 1.08 -- 1.08 ----------------------------------------------------------------------------------------------------------------
/a/ T. Rowe Price International is contractually obligated to waive any fees and bear any expenses to the extent such fees or expenses would cause the funds' ratios of expenses to average net assets to exceed the indicated percentage limitations. Fees waived or expenses paid or assumed are subject to reimbursement to T. Rowe Price International by each fund through the indicated reimbursement date, but no reimbursement will be made if it would result in a fund's expense ratio exceeding its specified limit. A summary of the funds' expense limitations and the periods for which they are effective is set forth below:
Expense Ratio Fund Limitation Period Limitation Reimbursement Date Emerging Europe & 9/1/00-10/31/02 1.75% 10/31/04 Mediterranean --------------------------------------------------------------- Emerging Markets 11/1/99-10/31/01 1.75% 10/31/03 Stock --------------------------------------------------------------- Global Stock 11/1/01-10/31/03 1.20% 10/31/05 --------------------------------------------------------------- International Growth & Income 11/1/00-10/31/02 1.25% 10/31/04
/b/ The fund operated under a previous expense limitation for which T. Rowe Price International may be reimbursed. /c/ Other expenses are estimated. Example. The following table gives you a rough idea of how expense ratios may translate into dollars and helps you to compare the cost of investing in these funds with that of other mutual funds. Although your actual costs may be higher or lower, the table shows how much you would pay if operating expenses remain the same, the expense limitations currently in place are not renewed (if applicable), you invest $10,000, earn a 5% annual return, and hold the investment for the following periods and then redeem: 14 FUND PROFILE ---------------------------------------------------------
Fund 1 year 3 years 5 years 10 years --------------------------------------------------------------------------- Emerging Europe & Mediterranean $178 $672 $1,312 $3,036 ------------------------------------ Emerging Markets Stock 178 524 867 1,834 ------------------------------------ European Stock 104 325 563 1,248 ------------------------------------ Global Stock 122 382 663 1,464 ------------------------------------ International Discovery 129 403 697 1,534 ------------------------------------ International Growth & Income 127 596 1,289 3,141 ------------------------------------ International Stock 86 268 466 1,037 ------------------------------------ Japan 111 347 601 1,329 ------------------------------------ Latin America 149 462 797 1,746 ------------------------------------ New Asia 110 343 595 1,317 ---------------------------------------------------------------------------
Who manages the funds? T. Rowe Price International is responsible for the selection and management of each fund's portfolio investments. The company, a wholly owned subsidiary of T. Rowe Price Associates, is the successor to Rowe Price-Fleming International ("Price-Fleming"), a joint venture established in 1979 between T. Rowe Price Associates and Robert Fleming Holdings ("Flemings"). In 2000, T. Rowe Price became the sole owner of Price-Fleming and renamed the company T. Rowe Price International. The U.S. office of T. Rowe Price International is located at 100 East Pratt Street, Baltimore, Maryland 21202. Offices are also located in London, Tokyo, Singapore, Hong Kong, Buenos Aires, and Paris. Each fund has an Investment Advisory Group that has day-to-day responsibility for managing the portfolio and developing and executing each fund's investment program. The members of each advisory group are listed below. Emerging Europe & Mediterranean Fund Christopher D. Alderson, John R. Ford, and Dale West. Emerging Markets Stock Fund Christopher D. Alderson, Frances Dydasco, Mark J.T. Edwards, John R. Ford, and Benedict R.F. Thomas. European Stock Fund John R. Ford, Robert A. Revel-Chion, and James B.M. Seddon. Global Stock Fund Mark C.J. Bickford-Smith, John R. Ford, James B.M. Seddon, Robert W. Smith, and David J.L. Warren. International Discovery Fund Frances Dydasco, Mark J.T. Edwards, John R. Ford, Ian J. Macdonald, and Justin Thomson. International Growth & Income Fund John R. Ford, James B.M. Seddon, Robert W. Smith, and Richard T. Whitney. International Stock Fund Mark C.J. Bickford-Smith, John R. Ford, James B.M. Seddon, and David J.L. Warren. 15 15 FUND PROFILE --------------------------------------------------------- Japan Fund John R. Ford, Ian J. Macdonald, and David J.L. Warren. Latin America Fund John R. Ford, Gonzalo Pangaro, and Benedict R.F. Thomas. New Asia Fund Frances Dydasco, Mark J.T. Edwards, and John R. Ford. Christopher Alderson joined T. Rowe Price International in 1988 and has 14 years of experience in research and portfolio management. Mark Bickford-Smith joined T. Rowe Price International in 1995 and has 15 years of experience in research and financial analysis. Frances Dydasco joined T. Rowe Price International in 1996 and has 11 years of experience in research and financial analysis. Mark Edwards joined T. Rowe Price International in 1987 and has 18 years of experience in financial analysis. John Ford joined T. Rowe Price International in 1982 and has 20 years of experience in research and portfolio management. Ian Macdonald joined T. Rowe Price International in 1998 and has 15 years of experience in equity research and portfolio management. Gonzalo Pangaro joined T. Rowe Price International in 1998 and has nine years of experience in financial analysis and portfolio management. Robert Revel-Chion joined T. Rowe Price International in 1998 and has 11 years of experience in investment management. James Seddon joined T. Rowe Price International in 1987 and has 13 years of experience in portfolio management. Robert Smith joined T. Rowe Price International in 1996, has been with T. Rowe Price since 1992, and has 13 years of experience in financial analysis. Benedict Thomas joined T. Rowe Price International in 1988 and has 11 years of portfolio management experience. Justin Thomson joined T. Rowe Price International in 1998 and has eight years of experience in portfolio management. David Warren joined T. Rowe Price International in 1983 and has 19 years of experience in equity research, fixed-income research, and portfolio management. Dale West joined T. Rowe Price International in 1998 as a research analyst. He received his M.B.A. from Stanford University in 1998 and from 1992 through 1996 was in the U.S. Foreign Service. Richard Whitney joined T. Rowe Price International in 1998, has been with T. Rowe Price since 1985, and has 17 years of experience in equity research and portfolio management. To participants in employer-sponsored retirement plans: The following questions and answers about buying and selling shares and services do not apply to your plan. Please call your plan's toll-free number for additional information. Also note that this profile may include funds not available through your plan. How can I purchase shares? Fill out the New Account Form and return it with your check in the postpaid envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts or transfers to minors). The minimum subsequent investment is $100 ($50 for IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also open an account by bank wire, by exchanging from another T. Rowe Price fund, or by transferring assets from another financial institution. 16 FUND PROFILE --------------------------------------------------------- How can I sell shares? You may redeem or sell any portion of your account on any business day. Simply write to us or call. You can also access your account at any time via Tele*Access /(R)/ or our Web site. We offer convenient exchange among our entire family of domestic and international funds. Restrictions may apply in special circumstances, and some redemption requests need a signature guarantee. When will I receive income and capital gain distributions? Each fund distributes income annually and net capital gains, if any, at year-end. For regular accounts, income and short-term gains are taxable at ordinary income rates, and long-term gains are taxable at the capital gains rate. Distributions are reinvested automatically in additional shares unless you choose another option, such as receiving a check. Distributions paid to IRAs and employer-sponsored retirement plans are automatically reinvested. What services are available? A wide range, including but not limited to: . retirement plans for individuals and large and small businesses; . automated information and transaction services by telephone or computer; . electronic transfers between fund and bank accounts; . automatic investing and automatic exchange; . brokerage services; and . asset manager accounts. FUND PROFILE --------------------------------------------------------- T. Rowe Price Associates, Inc. 100 East Pratt Street Baltimore, MD 21202 www.troweprice.com LOGO RPS C01-035 T. Rowe Price Investment Services, Inc., Distributor