-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, HgDISYTg66m5aerUMZ9PaJNHPE8zWvlnDd5EeCJC8hLUpiYRCq1UCLGr+fAUXFmi 11iag0n4B00XhcKF3RiuzQ== 0000950109-94-000934.txt : 19940603 0000950109-94-000934.hdr.sgml : 19940603 ACCESSION NUMBER: 0000950109-94-000934 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940430 FILED AS OF DATE: 19940602 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICE T ROWE INTERNATIONAL FUNDS INC CENTRAL INDEX KEY: 0000313212 STANDARD INDUSTRIAL CLASSIFICATION: IRS NUMBER: 521175211 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02958 FILM NUMBER: 94532651 BUSINESS ADDRESS: STREET 1: 100 E PRATT ST CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 3015472000 FORMER COMPANY: FORMER CONFORMED NAME: PRICE T ROWE INTERNATIONAL TRUST DATE OF NAME CHANGE: 19900301 FORMER COMPANY: FORMER CONFORMED NAME: PRICE T ROWE INTERNATIONAL FUND INC DATE OF NAME CHANGE: 19890914 N-30D 1 T. ROWE PRICE EUROPEAN ST FELLOW SHAREHOLDERS Compared with the strong equity markets of last year, European stocks experienced a subdued but relatively resilient start in 1994. The positive effects in Europe of continued short-term interest rate declines and signs of economic recovery were counterbalanced by weaker bonds and global nervousness as U.S. interest rates increased. Firmer European currencies helped bolster returns.
PERFORMANCE COMPARISON - -------------------------------------------------------- Periods Ended 4/30/94 3 Months 6 Months --------------------- European Stock Fund -2.5% 8.6% MSCI European Index -2.3 8.1 - --------------------------------------------------------
MARKET REVIEW After a weak January, the GERMAN market rebounded strongly as economically sensitive stocks continued their 1993 rally. The economy is showing clear signs of bottoming. Export orders began to pick up in the second half of 1993, but were outweighed by weak domestic demand, which is now stabilising. Your Fund's emphasis remains on more economically sensitive stocks as well as a core of growth stocks, and financials continue to be underweighted. Our old friend GEHE, the pharmaceutical wholesaler and generics producer, had a good quarter as its strong strategic position is increasingly being recognised during this time of upheaval in the pharmaceutical industry. One of many interesting developments is the recent deal whereby Bristol Myers gave Gehe's generics arm the right to produce high-profile drugs when patents expire and took an equity stake in the Gehe's generics subsidiary as well. The rest of the Germanic bloc has also been somewhat mixed. Your Fund's overweighting in the NETHERLANDS has been dull after a strong 1993. A recent meeting with niche publisher WOLTERS KLUWER confirmed its strong long-term growth potential. Wolters continues to grow both internally, from increased productivity and profit margins, and through acquisition, primarily in legal, tax, and educational publishing. Intermediate-term growth of 20% per annum remains a realistic target, making the stock's prospective price/earnings ratio of 15 highly attractive.
MARKET PERFORMANCE - ------------------------------------------------------------------------------ 3 Months Ended 4/30/94 ------------------------------------------- Local Currency Local vs. U.S. In U.S. Currency Dollar Dollars ------------------------------------------- Austria -11.3% 5.6% -6.4% Belgium -1.4 5.2 3.6 Denmark -3.3 4.1 0.7 France -6.2 4.2 -2.2 Germany 2.2 5.3 7.6 Italy 19.0 6.9 27.2 Netherlands -4.7 5.1 0.1 Norway -7.9 4.2 -4.1 Spain -10.7 4.3 -6.9 Sweden -6.7 3.6 -3.3 Switzerland -12.0 4.2 -8.3 United Kingdom -9.1 1.2 -8.1 - ------------------------------------------------------------------------------
In SWITZERLAND, the poor performance of large bank and pharmaceutical stocks weighed on the market. We continued paring down the exposure to both sectors while building on our position in BBC BROWN BOVERI, the international industrial, transport, and power group. Continuing improvements to efficiency combined with strong market positions leave BBC well placed to meet its aggressive profit targets. Recovering demand for capital goods as well as sustained infrastructure-related demand should provide the company with a fertile area in which to operate in the years ahead. Within the Latin bloc, the star performer has been ITALY. The spectacular political success of new, pro-business Prime Minister Silvio Berlusconi caught investor imagination both domestically and internationally. Italian economic performance has been hamstrung for so long by corruption and bureaucracy that the new environment could produce significant benefits. The first evidence of increased confidence has been the repatriation of capital, which helped the lira recover and propelled the equity market higher. Prime Minister Berlusconi will not have an easy task governing with his separatist and neo-fascist allies, but there seems to be a national desire for change. The export sector continues to recover, helped by previous lira weakness, and the domestic sector is beginning to look more stable. We remain somewhat overweighted in the telecommunications sector, taking advantage of the extraordinary performance there over the last two years. The French and Spanish markets have been dull compared with Italy. In FRANCE, the economy is also beginning to recover, but a combination of increased supply from government-owned businesses going public and rights issues, as well as a mixed valuation picture, have held back stock prices. With relative valuations looking more attractive, we edged up the Fund's French exposure by adding the well-managed industrial group CIE DE ST. GOBAIN. In SPAIN, the widening corruption scandal in the ruling Socialist Party highlighted the contrasts between the Spanish political situation and the positive changes occurring in Italy. We reduced exposure to utility ENDESA after its good performance of the last few years and added to the construction and environmental group FOSCA. In the Scandinavian economies, the export-led recovery may be further augmented by recoveries in other European economies and by revived domestic demand this year. The Scandinavian markets have all benefited from these encouraging developments. Your Fund remains overweighted in NORWAY, and we added to its exposure in SWEDEN, buying more stock in ELECTROLUX. The UK market was another dull performer. The economy, as in the U.S., has been recovering for some time, and stock prices already reflect much of the likely earnings rebound. With bond yields moving higher and short-term rates having bottomed, we expect UK stock prices to continue to lag the rest of Europe, so we will remain underweighted. Prime Minister Major's political woes do nothing to increase the market's attractiveness. Good values do exist in the market, however, particularly among sustainable growth stocks such as GRAND METROPOLITAN and REED INTERNATIONAL. INVESTMENT POLICY AND OUTLOOK With economies beginning to recover and interest rates likely to fall further, many European markets are still in the "sweet spot" of the economic cycle. Valuations are still acceptable and Europe should remain an attractive home for long-term investment. Respectfully submitted, /s/ Martin G. Wade Martin G. Wade President May 25,1994 2
TWENTY-FIVE LARGEST HOLDINGS April 30, 1994 Percent of Net Assets ---------- Elsevier, Netherlands 2.9% Wolters Kluwer, Netherlands 2.6 Royal Dutch Petroleum, Netherlands 2.4 SIP, Italy 2.1 Generale des Eaux, France 1.9 Roche Holdings, Switzerland 1.7 Sandoz, Switzerland 1.5 Cable & Wireless, United Kingdom 1.5 Reed International, United Kingdom 1.4 Guinness, United Kingdom 1.3 Valeo, France 1.3 Tomkins, United Kingdom 1.3 National Westminster, United Kingdom 1.3 Caradon, United Kingdom 1.1 Grand Metropolitan, United Kingdom 1.1 Nestle, Switzerland 1.1 Shell Transport & Trading, United Kingdom 1.1 SmithKline Beecham, United Kingdom 1.1 BBC Brown Boveri, Switzerland 1.0 CSM, Netherlands 1.0 Television Francaise, France 1.0 Peugeot, France 1.0 Kingfisher, United Kingdom 1.0 Norsk Hydro, Norway 0.9 Astra B, Sweden 0.9 - -------------------------------------------------------------- Total 35.5% ==============================================================
INDUSTRY DIVERSIFICATION April 30, 1994 Percent of Net Assets ---------- Media 9.8% Health & Personal Care 7.8 Telecommunications 7.5 Banking 7.2 Energy Sources 7.1 Merchandising 5.5 Chemicals 5.2 Food & Household Products 5.0 Business & Public Services 4.4 Building Materials & Construction 4.2 Multi-Industry 2.9 Entertainment/Leisure 2.9 Machinery & Engineering 2.7 Automobiles 2.7 Beverage/Tobacco Manufacturing 2.7 Electrical & Electronics 2.4 Financial Services 1.6 Real Estate 0.6 Other Industries 9.1 Short-Term Investments 7.8 Other Assets Less Liabilities 0.9 - -------------------------------------------------------------- Net Assets 100.0% ==============================================================
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GEOGRAPHICAL DIVERSIFICATION April 30, 1994 Percent of Country Net Assets - ------------------------------------------------------- ---------- Austria 0.1% Belgium 3.0 Denmark 0.5 Finland 0.7 France 12.2 Germany 7.7 Hungary 0.1 Ireland 0.1 Italy 6.8 Netherlands 13.7 Norway 2.9 Poland 0.1 Portugal 0.3 Russia 0.1 Spain 3.7 Sweden 3.2 Switzerland 8.3 Turkey 0.0 United Kingdom 27.8 All other countries 8.7 - -------------------------------------------------------------------- Total Net Assets 100.0% ====================================================================
SECURITY CLASSIFICATION April 30, 1994 Cost Market Value Percent of Net Assets (000) (000) - -------------------------------------------------- ---------- ------------ Common Stocks, Rights & Warrants, 89.9% $258,909 $299,008 Preferred Stocks, 1.3% 2,844 4,411 Bonds, 0.1% 221 230 Short-Term Investments, 7.8% 26,123 26,123 ---------- ------------ Total Investments, 99.1% 288,097 329,772 Other Assets Less Liabilities, 0.9% 3,550 3,082 - ------------------------------------------------------------------------------ Net Assets, 100.0% $291,647 $332,854 ==============================================================================
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STATEMENT OF NET ASSETS (VALUE IN THOUSANDS) T. ROWE PRICE EUROPEAN STOCK FUND / APRIL 30, 1994 (UNAUDITED) ============================================================================================================== AUSTRIA -- 0.1% Value -------- WARRANTS 2,000 wts. *Kreditbank Bankverein Hungarian Equity Basket, 12/31/95............ $ 2 PREFERRED STOCKS 2,050 shs. Creditanstalt Bankverein........................................... 121 1,300 Maculan............................................................ 125 246 Total Austria 248 BELGIUM -- 2.9% COMMON STOCKS & RIGHTS 14,340 AG Finanz.......................................................... 1,112 233 Audiofina.......................................................... 117 233 rts. *Audiofina.......................................................... 1 1,000 shs. CMB Shipping....................................................... 73 45,000 Cockerill Sambre................................................... 251 1,000 Decevninck......................................................... 124 11,348 Delhaize Freres.................................................... 453 2,100 Desimpel........................................................... 87 4,890 Generale Banque.................................................... 1,239 9,910 Kredietbank........................................................ 2,029 6,070 Societe Generale de Belgique....................................... 479 2,190 Solvay............................................................. 1,063 1,100 Tessenderlo Chemie................................................. 327 3,550 UCB................................................................ 2,435 9,790 CORPORATE BOND 4,522,500 BEL Kredietbank, Cv., 5.75%, 11/30/03.................................. 128 Total Belgium 9,918 DENMARK -- 0.5% COMMON STOCKS 12,150 shs. Den Danske Bank.................................................... 670 6,500 *Olicom (USD)....................................................... 54 2,800 Silcon............................................................. 179 6,100 Teledanmark........................................................ 311 14,600 *Unidanmark......................................................... 513 Total Denmark 1,727 FINLAND -- 0.7% COMMON STOCKS 7,000 Huhtamaki Oy....................................................... 277 42,000 shs. Kansallis Osake Park............................................... $ 95 12,000 Kymmene Corporation................................................ 245 10,000 Okobank............................................................ 99 716 PREFERRED STOCK 18,350 Nokia.............................................................. 1,556 Total Finland 2,272 FRANCE -- 12.2% COMMON STOCKS 16,930 Accor.............................................................. 2,193 600 Bail-Investissement................................................ 102 3,558 Brioche Pasquier................................................... 461 3,200 Burelle............................................................ 255 1,165 But................................................................ 176 18,620 CMB Packaging...................................................... 600 1,051 Cardif............................................................. 203 3,370 Carrefour.......................................................... 2,442 2,750 Centrale pour L'Industrie.......................................... 177 7,375 Chargeurs.......................................................... 1,908 1,100 Cie Cont. d'Equipment Electricite.................................. 141 14,099 Cie de St. Gobain.................................................. 1,725 3,600 Cipe France........................................................ 406 27 Concorde........................................................... 5 5,300 Dauphin............................................................ 299 700 De Dietrich & Cie.................................................. 345 8,343 Ecco Travail Temporaire............................................ 520 440 France............................................................. 178 350 Galeries Lafayette................................................. 164 14,036 Generale des Eaux.................................................. 6,384 1,800 Guilbert........................................................... 180 400 Guyenne & Gascogne................................................. 113 1,000 Idia............................................................... 39 18,115 Idianova........................................................... 211 2,300 Immeubles de France................................................ 229 353 International Metal Service........................................ 23 1,732 L'Oreal............................................................ 377 26,455 Lafarge Coppee..................................................... 2,137 2,000 Legris............................................................. 95 1,500 Manutan............................................................ 261 20,960 Peugeot............................................................ 3,302 6,900 Poliet............................................................. 532 450 Primagaz........................................................... 79 6,180 Promodes........................................................... 1,185 1,150 Redoute............................................................ 186 2,200 Rochefortaise Communication........................................ 70 1,350 SITA............................................................... 193 4,340 Societe Generale de France......................................... 487
5 T.ROWE PRICE EUROPEAN STOCK FUND / STATEMENT OF NET ASSETS
FRANCE (Cont'd) 29,920 shs. Societe Nationale Elf Aquitaine.................................... $ 2,184 1,100 Spir Communication................................................. 167 39,598 Television Francaise............................................... 3,304 23,450 Total.............................................................. 1,358 18,300 Valeo.............................................................. 4,478 1,500 Vallourec.......................................................... 87 1,400 Virbac............................................................. 215 3,965 Vulcanic........................................................... 120 1,100 Z Groupe Zannier................................................... 236 217 *Z Groupe Zannier, new.............................................. 45 40,577 CORPORATE BOND 174,410 FRF Virbac, Cv., 5.00%, 1/1/01......................................... 32 Total France 40,609 GERMANY -- 7.7% COMMON STOCKS & WARRANTS 1,050 shs. Allianz Holdings................................................... 1,650 700 Balcke Duerr....................................................... 220 8,180 Bayer.............................................................. 1,941 1,395 Bayerische Motoren Werke........................................... 762 3,300 Bremer Vulkan Verbund.............................................. 199 850 DLW................................................................ 305 4,473 Deutsche Bank...................................................... 2,113 650 FA Gunther & Sohn.................................................. 243 7,537 Gehe............................................................... 2,661 1,405 *Gehe, new.......................................................... 483 5,590 Hoechst............................................................ 1,229 400 Jean Pascale....................................................... 117 410 Kampa Hause........................................................ 235 2,400 Kaufhof Holdings................................................... 793 250 Klein, Schanzlin & Becker.......................................... 82 550 Leffers............................................................ 166 10,270 Mannesmann......................................................... 2,924 1,315 *Mannesmann, new.................................................... 369 325 Pfleiderer Bau und Verkehrssysteme................................. 119 1,200 Pittler............................................................ 116 680 Plettac............................................................ 286 448 Rhon Klinikum...................................................... 281 2,472 Schering........................................................... 1,653 100 Sixt, profit sharing units......................................... 64 520 VBH Vereinigte Baubeschlag Handel.................................. 256 4,520 Veba............................................................... 1,400 180 Victoria Holdings.................................................. 154 36 *Victoria Holding, new.............................................. 30 6,863 Volkswagon......................................................... 2,171 2,200 wts. *Volkswagen International Finance, 10/27/98......................... 275 400 shs. Vossloh............................................................ 148 23,445 PREFERRED STOCKS 540 shs. Edding............................................................. $ 176 200 Hach............................................................... 82 630 Hans Einhell....................................................... 122 650 Klein, Schanzlin & Becker.......................................... 169 450 Leffers............................................................ 107 450 Marschollek Lautenschlaeger........................................ 271 260 SAP................................................................ 495 300 Signal Bau Huber................................................... 61 200 Sixt............................................................... 59 439 Sto................................................................ 258 1,600 Westag & Getaut.................................................... 429 2,229 Total Germany 25,674 HUNGARY -- 0.1% COMMON STOCKS 75 *Chinion (USD)...................................................... 35 28,000 Fotex (ATS)........................................................ 137 Total Hungary 172 IRELAND -- 0.1% COMMON STOCKS 96,000 Abbey.............................................................. 247 300,000 Kenmare Resources (GBP)............................................ 59 64,000 Kingspan Group..................................................... 132 Total Ireland 438 ITALY -- 6.8% COMMON STOCKS & WARRANTS 525 Alleanza Assicurazioni, savings shares............................. 5 103,778 Assicurazioni Generali............................................. 3,018 34,000 Danieli & Company, savings shares.................................. 150 200,000 Editoriale la Republica............................................ 566 31,500 *Fila Holdings ADS (USD)............................................ 437 46,273 *Imi................................................................ 381 9,000 *Industrie Natuzzi ADS (USD)........................................ 243 90,650 Italcable.......................................................... 649 278,352 Italcable, savings shares.......................................... 1,660 276,120 Italgas............................................................ 1,053 23,000 Lloyd Adriatico.................................................... 238 27,624 Merloni Elettrodomestici........................................... 119 132,624 Merloni Elettrodomestici, savings shares........................... 267 1,469,352 Montedison......................................................... 1,451 611,176 wts. *Montedison, 12/31/95............................................... 83 611,176 *Montedison, 1/19/97................................................ 168 54,400 shs. RAS, savings shares................................................ 612 1,993,327 SIP................................................................ 5,965 416,190 SIP, savings shares................................................ 1,032 36,000 Standa, savings shares............................................. 365
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599,300 Stet............................................................... $ 2,319 319,935 Stet, savings shares............................................... 1,048 155,000 Tecnost............................................................ 391 20,000 Telecocavi, savings shares......................................... 76 22,296 PREFERRED STOCK 23,000 Saes Getters....................................................... 207 Total Italy 22,503 NETHERLANDS -- 13.7% COMMON STOCKS 45,258 ABN Amro........................................................... 1,496 11,660 AMEV............................................................... 453 32,282 Ahold.............................................................. 823 23,543 Akzo............................................................... 2,826 1,000 Atag............................................................... 83 14,000 Boskalis Westminster............................................... 331 94,798 CSM................................................................ 3,307 26,891 Ehco KLM........................................................... 508 107,462 Elsevier........................................................... 9,642 4,500 Hagemeyer.......................................................... 350 700 Hollandsche Beton Groep............................................ 126 5,750 International Mueller.............................................. 269 65,710 International Nederlanden Groep.................................... 2,736 2,400 Nedcon Groep....................................................... 49 70,473 Polygram........................................................... 2,901 4,000 Randstad Holdings.................................................. 164 74,280 Royal Dutch Petroleum.............................................. 8,144 25,800 Unilever........................................................... 2,867 147,576 Wolters Kluwer..................................................... 8,593 45,668 PREFERRED STOCK 10,947 International Nederlanden Groep.................................... 48 Total Netherlands 45,716 NORWAY -- 2.9% COMMON STOCKS 14,000 Aker............................................................... 181 12,000 *Awilco Shipping.................................................... 126 22,980 Bergesen `A'....................................................... 508 11,100 *Bona Ship Holdings................................................. 111 7,000 Bonheur............................................................ 137 6,500 *Braathens Safe..................................................... 215 15,000 Helikopter Service................................................. 192 24,910 Kvaerner Industier `A'............................................. 1,253 10,175 *Liva Bil........................................................... 172 92,975 Norsk Hydro........................................................ 3,139 55,944 Orkla `A'.......................................................... 1,826 24,260 shs. Saga Petroleum `B'................................................. 266 4,000 Schibsted.......................................................... $ 258 13,000 Sensonor........................................................... 70 23,000 Smedvig Tankships.................................................. 214 35,000 Sysdeco Group...................................................... 195 40,000 Uni Storebrand..................................................... 95 4,500 Unitor............................................................. 89 11,000 Veidekke........................................................... 290 30,000 *Western Bulk Shipping.............................................. 167 Total Norway 9,504 POLAND -- 0.1% COMMON STOCKS 1,000 Elektrim........................................................... 61 186,843 *International UNP Holdings (CAD)................................... 169 1,500 *Mostostal.......................................................... 90 Total Poland 320 PORTUGAL -- 0.3% COMMON STOCKS & RIGHTS 5,700 Banco Totta e Acores............................................... 121 1,070 *Banco Totta e Acores, new.......................................... 21 7,200 Companhia de Seguros Imperio....................................... 55 6,016 Jeronimo Martins................................................... 487 12,000 *Jornalgeste........................................................ 204 12,000 rts. *Jornalgeste........................................................ 1 Total Portugal 889 RUSSIA -- 0.1% COMMON STOCK 29,000 shs. *Petersburg Long Distance (USD)..................................... 257 Total Russia 257 SPAIN -- 3.7% COMMON STOCKS 6,800 Argentaria Corporation Bancaria de Espana.......................... 294 5,000 Azkoyen............................................................ 290 4,715 Banco Popular Espanol.............................................. 546 16,900 Banco Santander.................................................... 740 55,520 Centros Commerciales Pryca......................................... 793 75,000 Corporation Financiaera Reunida.................................... 255 56,426 ENDESA............................................................. 2,789 7,000 Espanol de Carburos Metalicos...................................... 207 10,000 Europistas......................................................... 121 2,500 Europistas, new.................................................... 30 10,800 FOSCA.............................................................. 1,195 25,000 shs. Filo............................................................... 263
7 T. ROWE PRICE EUROPEAN STOCK FUND/STATEMENT OF NET ASSETS
SPAIN (Cont'd) 10,721 Gas Natural........................................................ $ 888 9,000 Grupo Anaya........................................................ 205 9,750 Hidroelectrica del Cantabrico...................................... 302 5,500 Inmobiliaria Metropolitana Vasco................................... 216 9,500 Prosegur Compania Securidad........................................ 204 64,190 Repsol............................................................. 2,132 68,378 Telefonica de Espana............................................... 926 12,396 CORPORATE BOND 4,500,000 ESP Grupo Anaya, Cv., 7.00%, 3/18/98................................... 33 Total Spain 12,429 SWEDEN -- 3.2% COMMON STOCKS 6,550 shs. Asea `A'........................................................... 544 155,140 Astra `B'.......................................................... 3,099 16,850 Atlas Copco `B'.................................................... 1,166 50,000 Bilspedition `B'................................................... 202 21,650 Electrolux `B'..................................................... 1,147 23,810 Esselte `B'........................................................ 373 100,000 Frontline.......................................................... 268 3,026 Gambro `B'......................................................... 145 7,000 Getinge Industrial................................................. 196 18,270 Hennes & Mauritz `B'............................................... 902 12,000 *Hoganas............................................................ 161 31,700 ICB Shipping `B'................................................... 381 32,880 Sandvik `B'........................................................ 528 17,470 Scribona `B'....................................................... 114 6,000 Securitas.......................................................... 204 25,000 Stena Line `B'..................................................... 184 6,250 *Stena Line `B', new................................................ 45 12,940 Stora Kopparberg `B'............................................... 696 12,000 *TV 4............................................................... 238 10,593 CORPORATE BOND 281,250 SEK Stena Line, Cv., 7.00%, 4/30/01.................................... 37 Total Sweden 10,630 SWITZERLAND -- 8.3% COMMON STOCKS & WARRANTS 680 shs. Affichage.......................................................... 180 3,790 BBC Brown Boveri................................................... 3,467 1,000 wts. *Baloise Holdings, 11/14/95......................................... 129 170 shs. Bobst.............................................................. 221 300 Bossard Holdings................................................... 362 40 Bucherer........................................................... 135 800 wts. *Bucherer, 7/21/95.................................................. $ 102 2,765 shs. CS Holdings........................................................ 1,184 1,736 Ciba Geigy......................................................... 1,030 125 Gurit Heberlien.................................................... 230 300 Intershop Holdings................................................. 134 400 wts. *Intershop Holdings, 6/20/94........................................ 2 625 shs. Kardex............................................................. 179 170 Landis & Gyr....................................................... 107 170 wts. *Landis & Gyr, 2/15/95.............................................. 1 4,486 shs. Nestle............................................................. 3,732 800 Porst Holdings..................................................... 244 2,000 wts. *Porst Holdings, 6/15/94............................................ 11 700 shs. Prodega............................................................ 204 1,208 Roche Holdings..................................................... 5,757 1,918 Sandoz............................................................. 5,047 6,000 wts. *Sandoz Overseas Finance, 1/11/95................................... 247 110 shs. Saurer GH/GI....................................................... 230 100 Sig Schweiz Industries............................................. 209 861 Sika Finanz........................................................ 226 1,330 Suter & Suter...................................................... 255 5,540 *Swiss Bank......................................................... 1,540 2,787 Union Bank of Switzerland.......................................... 2,324 1,400 *Von Moos Holdings.................................................. 164 Total Switzerland 27,653 TURKEY -- 0.1% COMMON STOCKS 10,000 Guney Biracilik.................................................... 7 31,500 *Turkiye Garanti Bankasi ADR (USD).................................. 43 Total Turkey 50 UNITED KINGDOM -- 27.8% COMMON STOCKS, RIGHTS & WARRANTS 274,000 Abbey National..................................................... 1,808 27,000 wts. *Abtrust Lloyds Insurance, 2008..................................... 17 25,000 shs. Anglian Group...................................................... 97 40,000 *Applied Distribution Group......................................... 80 209,000 Argos.............................................................. 1,155 351,000 Argyll Group....................................................... 1,217 1,283,430 Asda Group......................................................... 1,068 66,666 Ashtead Group...................................................... 400 28,250 Avon Rubber........................................................ 257 85,000 BAA................................................................ 1,258 50,000 Baggeridge Brick................................................... 95 69,000 Berisford International............................................ 243 467,616 Birkdale Group..................................................... 74 65,000 Bradford Property Trust............................................ 243 50,000 British Biotechnology Group........................................ 316 4,166 British Biotechnology Group, new................................... 13
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359,250 shs. British Gas........................................................ $ 1,555 141,000 British Petroleum.................................................. 826 190,000 Britton Group...................................................... 469 1,126,614 Brown & Jackson.................................................... 94 311,750 Bruntcliffe Aggregates............................................. 165 75,600 CALA............................................................... 149 170,000 CRT Group.......................................................... 280 712,530 Cable & Wireless................................................... 4,874 299,116 Cadbury Schweppes.................................................. 2,173 711,300 Caradon............................................................ 3,822 95,000 Carpetright........................................................ 391 182,829 Casket............................................................. 154 49,723 Claremont Garments................................................. 268 245,000 Coats Viyella...................................................... 886 40,000 Control Techniques................................................. 299 307,578 Crestacare......................................................... 172 110,000 Cupid.............................................................. 29 35,000 *DFS Furniture...................................................... 159 180,000 David S. Smith..................................................... 1,498 62,500 Devro International................................................ 246 10,000 Druck.............................................................. 219 86,510 East Midlands Electricity.......................................... 721 119,730 Eastern Electricity................................................ 1,051 171,042 *Enviromed.......................................................... 347 262,570 First National Finance............................................. 294 37,000 First Technology................................................... 172 66,000 Frost Group........................................................ 245 3,947 GWR Group.......................................................... 60 321,540 Glaxo Holdings..................................................... 2,808 11,000 *Graham Group....................................................... 35 533,940 Grand Metropolitan................................................. 3,814 2,062,500 Graystone.......................................................... 421 5,000 Greenalls.......................................................... 35 380,000 Greycoat........................................................... 105 619,040 Guinness........................................................... 4,478 180,000 HTV Group.......................................................... 362 125,000 *Halkin Holdings.................................................... 115 48,000 Hall Engineering................................................... 177 74,000 Heath.............................................................. 429 40,000 Helical Bar........................................................ 223 13,000 Henderson Administration Group..................................... 181 625 Heywood Williams Group............................................. 4 100,000 Hi-Tech Sports..................................................... 135 47,000 Highland Distilleries.............................................. 291 200,810 Hillsdown Holdings................................................. 514 90,000 Holliday Chemical Holding.......................................... 301 22,500 Holliday Chemical Holding, new..................................... 14 55,000 Hunterprint Group.................................................. 22 60,000 Ibstock Johnsen.................................................... 72 90,000 Ingham............................................................. 159 31,250 JD Wetherspoon..................................................... 175 202,690 John Laing......................................................... 1,052 28,000 shs. Jupiter Tyndall Group.............................................. $ 120 42,000 Kenwood Appliances................................................. 231 90,000 Kewill Systems..................................................... 368 373,921 Kingfisher......................................................... 3,265 312,250 Ladbroke Group..................................................... 874 110,000 Laura Ashley Holdings.............................................. 147 92,000 London & Overseas Freighters....................................... 131 273,950 London Electricity................................................. 2,338 445,000 Mayflower.......................................................... 377 138,125 Medeva............................................................. 295 120,000 Mirror Group Newspapers............................................ 309 131,000 Monument Oil & Gas................................................. 138 625,900 National Westminster Bank.......................................... 4,272 46,000 Nestor............................................................. 49 100,000 *Northern Leisure................................................... 65 100,000 Owners Abroad...................................................... 187 25,000 Pentos............................................................. 10 33,333 Pentos, new........................................................ 1 42,000 Peter Black Holdings............................................... 158 48,000 Pict Petroleum..................................................... 118 125,000 Pizza Express...................................................... 235 260,000 *Polly Peck International........................................... 12 61,250 Porvair............................................................ 323 57,000 Powerscreen International.......................................... 207 260,000 Princedale Group................................................... 85 76,701 Prowting........................................................... 196 49,561 Quadramatic........................................................ 137 125,060 RTZ................................................................ 1,592 135,000 Raine Industries................................................... 178 375,625 Rank Organisation.................................................. 2,446 355,940 Reed International................................................. 4,549 5,000,000 Regal Hotel Group.................................................. 151 224,420 Rolls Royce........................................................ 686 50,000 Rosebys............................................................ 143 20,000 Sage Group......................................................... 180 82,500 Serco Group........................................................ 355 170,000 Shandwick.......................................................... 129 85,000 rts. *Shandwick.......................................................... 6 335,790 shs. Shell Transport & Trading.......................................... 3,674 657,100 SmithKline Beecham, equity units................................... 3,511 171,500 South Western Electricity.......................................... 1,507 269,388 Spring Ram......................................................... 247 35,000 Stagecoach Holdings................................................ 101 111,000 Stakis............................................................. 151 27,750 Stakis, new........................................................ 38 85,000 Sterling Publshing................................................. 234 240,000 Stirling Group..................................................... 203 473,000 T & N.............................................................. 1,743 47,748 T. Cowie........................................................... 238 243,500 Tesco.............................................................. 770 30,000 The Telegraph...................................................... 277 4,350,000 Ticketing Group.................................................... 132
9 T. ROWE PRICE EUROPEAN STOCK FUND/STATEMENT OF NET ASSETS
UNITED KINGDOM (Cont'd) 1,112,580 shs. Tomkins............................................................ $ 4,294 243,500 Transfer Technology Group.......................................... 306 17,000 *Trifast............................................................ 54 58,000 Trinity Holdings................................................... 272 197,774 *UK Estates......................................................... 78 125,000 *Ugland International............................................... 235 254,420 United Newspapers.................................................. 2,411 874,806 Verity Group....................................................... 154 85,000 Vibroplant......................................................... 125 170,000 WPP Group.......................................................... 314 151,111 Wickes............................................................. 246 2,600,000 Wiggins Group...................................................... 256 92,515 PREFERRED STOCK 56,714 First National Finance, Cum. Cv., 7.00%............................ 125 Total United Kingdom 92,640 SHORT-TERM INVESTMENTS -- 7.8% COMMERCIAL PAPER $2,000,000 Abbey National, 3.42%, 5/9/94...................................... 1,999 300,000 Air Products & Chemicals, 3.65%, 5/9/94............................ 299 2,100,000 Asset Securitization Cooperative, 3.95%, 6/14/94................... 2,089 1,000,000 Bell South Telecommunication, 3.75%, 5/24/94....................... 997 5,000,000 Caisse des Depots et Consignations, 3.63%, 5/12/94................. 4,985 3,000,000 Ciba-Geigy, 3.12%, 5/13/94......................................... 2,969 6,840,000 Federal Home Loan Bank, 3.55%, 5/2/94.............................. 6,838 5,000,000 New South Wales Treasury, 3.18%, 5/9/94............................ 4,947 25,123 OTHER 1,000,000 Corporate Asset Funding, Floating Rate Medium-Term Note, 3.71%, 12/12/94............................................ 1,000 Total Short-Term Investments 26,123 ============================================================================================================== Total Investments in Securities -- 99.1% (Cost--$288,097) 329,772 ============================================================================================================== Other Assets Less Liabilities -- 0.9% 3,082 Net Assets Consisting of: Accumulated net investment income -- net of distributions $ 217 Accumulated realized gains/losses -- net of distributions (5,667) Unrealized appreciation of investments 41,207 Paid-in-capital applicable to 27,092,784 shares of $0.01 par value capital stock outstanding; 1,000,000,000 shares of the Corporation authorized 297,097 ------- Net Assets -- 100.0% $332,854 ======== Net Asset Value Per Share $12.29 ====== ==============================================================================================================
* Non-income producing (ATS) - Austrian schilling denominated (BEL) - Belgian franc denominated (CAD) - Canadian dollar denominated (DEM) - German deutschemark denominated (ESP) - Spanish peseta denominated (FRF) - French franc denominated (GBP) - British sterling denominated (SEK) - Swedish krona denominated (USD) - U.S. dollar denominated 10 STATEMENT OF OPERATIONS T. Rowe Price European Stock Fund / Six Months Ended April 30, 1994 (Unaudited)
Amounts in Thousands -------------------- INVESTMENT INCOME Income Dividends (net of foreign taxes of $316)........................................... $ 1,993 Interest........................................................................... 397 ------- Total income....................................................................... $ 2,390 Expenses Investment management fees......................................................... 1,272 Shareholder servicing fees & expenses.............................................. 412 Custodian and accounting fees & expenses........................................... 171 Registration fees & expenses....................................................... 41 Prospectus & shareholder reports................................................... 36 Legal & auditing fees.............................................................. 21 Directors' fees & expenses......................................................... 5 Miscellaneous expenses............................................................. 5 Proxy & annual meeting expenses.................................................... 3 ------- Total expenses..................................................................... 1,966 ------- Net investment income................................................................. 424 ------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain Securities......................................................................... 7,024 Foreign currency transactions...................................................... 151 ------- Net realized gain..................................................................... 7,175 Change in unrealized appreciation or depreciation Securities......................................................................... 15,484 Other assets and liabilities denominated in foreign currencies..................... (653) ------- Change in unrealized appreciation or depreciation..................................... 14,831 ------- Net gain on investments............................................................... 22,006 ------- INCREASE IN NET ASSETS FROM OPERATIONS................................................ $22,430 ======= ===============================================================================================================
The accompanying notes are an integral part of these financial statements. 11 STATEMENT OF CHANGES IN NET ASSETS T. Rowe Price European Stock Fund (Unaudited)
Six Months Ended Ten Months Ended Year Ended April 30, 1994 October 31, 1993* December 31, 1992 ---------------- ----------------- ----------------- Amounts in Thousands ------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS Operations Net investment income...................................................... $ 424 $ 3,010 $ 1,722 Net realized gain (loss) on investments.................................... 7,175 (1,857) (4,771) Change in unrealized appreciation or depreciation of investments........... 14,831 39,328 (9,966) -------- -------- -------- Increase (decrease) in net assets from operations.......................... 22,430 40,481 (13,015) -------- -------- -------- Distributions to shareholders Net investment income...................................................... (936) -- (3,145) Net realized gain on investments........................................... (234) -- -- -------- -------- -------- Decrease in net assets from distributions to shareholders.................. (1,170) -- (3,145) -------- -------- -------- Capital share transactions Sold 11,348, 12,987 and 14,862 shares...................................... 135,393 134,071 149,322 Distributions reinvested of 88, 0 and 266 shares........................... 1,043 -- 2,496 Redeemed 7,729, 8,161 and 6,868 shares..................................... (90,626) (82,566) (67,230) -------- -------- -------- Increase in net assets from capital share transactions..................... 45,810 51,505 84,588 -------- -------- -------- Net equalization.............................................................. -- -- 1,393 -------- -------- -------- Total increase................................................................ 67,070 91,986 69,821 NET ASSETS Beginning of period........................................................ 265,784 173,798 103,977 -------- -------- -------- End of period.............................................................. $332,854 $265,784 $173,798 ======== ======== ======== ===========================================================================================================================
*The Fund's fiscal year-end was changed to October 31. The accompanying notes are an integral part of these financial statements. 12 NOTES TO FINANCIAL STATEMENTS T. Rowe Price European Stock Fund / April 30, 1994 (Unaudited) NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the Corporation) is registered under the Investment Company Act of 1940. The European Stock Fund (the Fund), a diversified, open-end management investment company, is one of the portfolios established by the Corporation. A) Valuation - Equity securities listed or regularly traded on a securities exchange (including NASDAQ) are valued at the last quoted sales price at the time the valuations are made. A security which is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Other equity securities and those listed securities that are not traded on a particular day are valued at a price within the limits of the latest bid and asked prices deemed by the Board of Directors, or by persons delegated by the Board, best to reflect fair value. Debt securities are generally traded in the over-the-counter market and are valued at a price deemed best to reflect fair value as quoted by dealers who make markets in these securities or by an independent pricing service. Short- term debt securities are valued at their cost which, when combined with accrued interest, approximates fair value. For purposes of determining the Fund's net asset value per share, all assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at the mean of the bid and offer prices of such currencies against U.S. dollars quoted by a major bank. Assets and liabilities for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by or under the supervision of the officers of the Fund, as authorized by the Board of Directors. B) Currency translation - Foreign currency amounts are translated into U.S. dollars at prevailing exchange rates as follows: assets and liabilities at the rate of exchange at the end of the respective period, purchases and sales of securities and income and expenses at the rate of exchange prevailing on the dates of such transactions. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. C) Other - Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on an identified cost basis. Dividend income and distributions to shareholders are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. Effective January 1, 1993, the Fund discontinued its practice of equalization. NOTE 2 - FINANCIAL INSTRUMENTS As a part of its investment program, the Fund engages in the following activities, the nature and risk of which are set forth more fully in the Fund's Prospectus and Statement of Additional Information. A) Emerging Markets - The Fund has investments in securities of companies located in emerging markets. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. B) Forward Currency Exchange Contracts - At April 30, 1994, the Fund was a party to various forward currency exchange contracts under which it is obligated to exchange currencies at specified future dates. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movements in currency values. Outstanding contracts at April 30, 1994, are as follows: 13 NOTES TO FINANCIAL STATEMENTS (CONT'D)
Unrealized Contract to Apprec. Value ------------------------------ (Deprec.) Date Receive Deliver in USD Counterparty - ----- ------- ------- ---------- ------------ Amounts in Thousands -------------------------------------------------------- 6/94 USD 2,524 FRF 15,000 (110) Chase Manhattan Bank 6/94 USD 3,971 DEM 6,900 (181) Chase Manhattan Bank 6/94 USD 5,827 GBP 3,961 (160) Chase Manhattan Bank
Net unrealized depreciation of $451,000 on these contracts at April 30, 1994, is included in the accompanying financial statements, all of which relates to depreciated contracts. C) Other - Purchases and sales of portfolio securities, other than short-term and U.S. Government securities, aggregated $70,486,000 and $39,376,000. NOTE 3 - FEDERAL INCOME TAXES No provision for federal income taxes is required since the Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. The Fund has unused realized capital loss carryforwards for federal income tax purposes of $12,282,000 at October 31, 1993, which expire in 1998 through 2001. At April 30, 1994, the aggregate cost of investments for federal income tax and financial reporting purposes was $288,097,000 and net unrealized appreciation aggregated $41,675,000, of which $50,580,000 related to appreciated investments and $8,905,000 to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The Fund is managed by Rowe Price-Fleming International, Inc. (Price-Fleming) which is owned by T. Rowe Price Associates, Inc. (Price Associates), Robert Fleming Holdings Limited, and Jardine Fleming Holdings Limited under a joint venture agreement. The investment management agreement between the Fund and Price-Fleming (the Manager) provides for an annual investment management fee, computed daily and paid monthly, consisting of an Individual Fund Fee equal to 0.50% of average daily net assets and a Group Fee. The Group Fee is based on the combined assets of certain mutual funds sponsored by the Manager or Price Associates (the Group). The Group Fee rate ranges from 0.48% for the first $1 billion of assets to 0.31% for assets in excess of $34 billion. The effective annual Group Fee rate at April 30, 1994, and for the six months then ended was 0.34%. The Fund pays a pro rata portion of the Group Fee based on the ratio of the Fund's net assets to those of the Group. During the six months ended April 30, 1994, the Fund, in the ordinary course of business, paid commissions of $3,000 to, and placed security purchase and sale orders aggregating $1,057,000 with, certain affiliates of the Manager in connection with the execution of various portfolio transactions at the direction of Price-Fleming. T. Rowe Price Services, Inc. (TRPS) and Retirement Plan Services, Inc. (RPS) are wholly owned subsidiaries of Price Associates. TRPS provides transfer and dividend disbursing agent functions and shareholder services for all accounts. RPS provides subaccounting and recordkeeping services for certain retirement accounts invested in the Fund. Price Associates, under a separate agreement, calculates the daily share price and maintains the financial records of the Fund. For the six months ended April 30, 1994, the Fund incurred fees totalling approximately $355,000 for these services provided by related parties. At April 30, 1994, these investment management and service fees payable were $305,000. 14 FINANCIAL HIGHLIGHTS T. Rowe Price European Stock Fund (Unaudited)
For a share outstanding throughout each period ---------------------------------------------------------------------- From February 28, 1990 Six Months Ten Months Year Ended (Commencement Ended Ended December 31, of Operations) to April 30, October 31, -------------------------- December 31, 1994 1993++ 1992 1991 1990 -------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD................... $ 11.37 $ 9.36 $ 10.09 $ 9.48 $ 10.00 -------- -------- -------- -------- -------- Investment Activities Net investment income................................ (.02) 0.12 0.14 0.10 0.24* Net realized and unrealized gain (loss).............. .95 1.89 (0.70) 0.59 (0.56) -------- -------- -------- -------- -------- Total from Investment Activities....................... 0.97 2.01 (0.56) 0.69 (0.32) -------- -------- -------- -------- -------- Distributions Net investment income................................ (0.04) -- (0.17) (0.08) (0.20) Net realized gain.................................... (0.01) -- -- -- -- -------- -------- -------- -------- -------- Total Distributions.................................... (0.05) -- (0.17) (0.08) (0.20) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD......................... $ 12.29 $ 11.37 $ 9.36 $ 10.09 $ 9.48 ======== ======== ======== ======== ======== ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA Total Return........................................... 8.6% 21.5% (5.6)% 7.3% (3.2)% Ratio of Expenses to Average Net Assets................ 1.30%+ 1.35%+ 1.48% 1.71% 1.75%+* Ratio of Net Investment Income to Average Net Assets................................................ 0.28%+ 1.79%+ 1.23% 1.04% 2.30%+ Portfolio Turnover Rate................................ 27.9%+ 21.3%+ 52.0% 57.7% 34.9%+ Net Assets, End of Period (in thousands)............... $332,854 $265,784 $173,798 $103,977 $ 99,447 Number of Shareholder Accounts, End of Period.......... 32,000 27,000 24,000 15,000 16,000 ==================================================================================================================================
++ The Fund's fiscal year-end was changed to October 31. * Excludes expenses in excess of a 1.75% voluntary expense limitation in effect through December 31, 1991. + Annualized. 15 SemiAnnual Report - ------------------------------------------------------------------------------ For yield, price, last transaction, and current balance, 24 hours, 7 days a week, call: 1-800-638-2587 toll free 625-7676 Baltimore area For assistance with your existing fund account, call: Shareholder Service Center 1-800-225-5132 toll free 625-6500 Baltimore area T. Rowe Price 100 East Pratt Street Baltimore, Maryland 21202 This report is authorized for distri- bution only to shareholders and to others who have received a copy of the prospectus of the T. Rowe Price European Stock Fund. T. ROWE PRICE Invest With Confidence(R) ESF T.Rowe Price - ------------ European Stock Fund April 30, 1994 (ART APPEARS HERE) -----END PRIVACY-ENHANCED MESSAGE-----