-----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, gLzUJm6Bc9CWZy/u618msl/VxVV3f0LFcmKKmXMMA8Xm7RnJsO+WEiXGB3hWGg/O RgJYatWyZzCnGEUt+uHWPw== 0000950109-95-002063.txt : 19950531 0000950109-95-002063.hdr.sgml : 19950531 ACCESSION NUMBER: 0000950109-95-002063 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950526 SROS: NONE 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: 95542609 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 EUROPEAN STOCK FUND - -------------------------------------------------------------------------------- Fellow Shareholders - -------------------------------------------------------------------------------- European stock markets picked up in the fund's second quarter ended April 30. When combined with the appreciation of most European currencies against the dollar, the advance more than reversed the negative returns of the first quarter for U.S. investors. Your fund's strong performance was virtually in line with the unmanaged Morgan Stanley Capital International Europe Index for three months and lagged the benchmark by a small margin for the six-month period. - -------------------------------------------------------------------------------- Performance Comparison - --------------------------------------------------------------------------------
Periods Ended 4/30/95 3 Months 6 Months --------------------- European Stock Fund 10.5% 5.4% MSCI European Index 10.6 6.2 - --------------------------------------------------------------------------------
MARKET REVIEW Most European economies entered their second year of growth. With companies reporting good earnings gains and bond markets showing much more stability, stock valuations continued to improve, thereby allowing markets to register positive returns. Encouraging signs of further growth in Europe and indications of a slowdown in the U.S. also helped European currencies appreciate against the dollar. The U.K. economy was the exception to the trend in that signs pointed to a slowing of growth to a more sustainable rate. Over the last few years the Bank of England has gained some ground in its efforts to implement a monetary policy independent of politics. As a consequence, we have already seen three increases in short-term rates to counter inflationary pressures before they become evident in the economy. The rate increases had little effect on the stock market, which performed well. Since the pound weakened slightly against the dollar during the past six months (despite a small rise during the quarter), U.S. investors did not receive an extra lift from currency translation. We have maintained our weighting in the U.K., adding to our existing holding in publisher REED INTERNATIONAL during the quarter and reducing several stocks that had risen strongly, including paper and packaging company DAVID S. SMITH. - -------------------------------------------------------------------------------- Market Performance - --------------------------------------------------------------------------------
3 Months Ended 4/30/95 ----------------------------------- Local Currency Local vs. U.S. In U.S. Currency Dollar Dollars ----------------------------------- Austria -3.7% 9.2% 5.1% Belgium 6.4 9.7 16.7 Denmark -2.6 10.3 7.4 France 8.9 7.1 16.6 Germany 1.1 9.6 10.8 Italy -0.6 -4.7 -5.3 Netherlands 2.0 9.7 11.9 Norway -3.6 6.8 3.0 Spain 1.7 7.1 8.9 Sweden 6.4 2.7 9.2 Switzerland 3.0 11.7 15.1 United Kingdom 8.3 1.4 9.8 - --------------------------------------------------------------------------------
Source: Wood MacKenzie "Quant" from MSCI indices. Other major markets led performance within Europe during the fund's second quarter. After a poor showing in the previous 12 months, the FRENCH stock market revived. With more expansionary policies expected now that the election is over, we continued to increase our exposure to consumer stocks in France by adding to luxury goods manufacturer LVMH and the retailer CARREFOUR . In both the NETHERLANDS and SWITZERLAND the combination of local market performance and strong currencies produced excellent returns for U.S. investors. ROYAL DUTCH was buoyed by higher petrochemical prices, and the insurer FORTIS AMEV recovered impressively from depressed levels after reporting good earnings. In GERMANY, the currency's strength prompted cuts in interest rates despite the worse-than-expected wage settlement. Although tax increases have restrained consumer confidence, we believe high wages, the stronger deutschemark, and lower interest rates may shift the economy's momentum from exports toward the consumer sector. We maintained our low weighting in German stocks in view of their high valuations. However, the earnings recovery under way in Germany as in other European countries may bring valuations into more reasonable territory, and we will be watching for appealing investment opportunities. - -------------------------------------------------------------------------------- GEOGRAPHICAL DIVERSIFICATION - -------------------------------------------------------------------------------- [PIE CHART APPEARS HERE] Pie chart European Stock Fund report (Apr. 30, 1995) Entitled "Geographical Diversification": Shows United Kingdom 28%; Netherlands 16%; France 13%; Germany 8%; Switzerland 7%; Sweden 5%; and Other and Reserves 23%. Based on net assets as of April 30, 1995. The Scandinavian markets were relatively dull during the quarter. SWEDISH stocks performed best in local currency terms, but Sweden's currency continued to be held back by the country's large budget deficit. Exporters are still leading the sharp recovery in profitability, and we took advantage of a setback in the market to increase exposure to the export area. We continue to focus on well-managed companies that benefit from a strong competitive position, such as capital goods manufacturer ATLAS COPCO and appliance manufacturer ELECTROLUX. The markets in NORWAY and DENMARK declined as revenues of many of the larger companies were hurt by the weak dollar. However, the dollar's plunge versus these currencies resulted in gains for U.S. investors. The smaller markets of Latin Europe, ITALY and SPAIN, trailed the European average during the quarter. An unstable political environment and poor government finances hindered Italian stocks. Attempts to address fiscal problems have been limited, and, as a result, high interest rates added to the country's continuing woes. This has been reflected in both the stock market and a very weak currency. In Spain, a return to economic growth exposed structural weaknesses in the economy. A potential change in government in 1996 may pave the way for helpful reforms, but until then the investment landscape looks unexciting. However, the stock market looks cheap, and we have maintained a neutral weighting by switching out of TELEFONICA DE ESPANA, the telephone utility, and into oil and gas company REPSOL. INVESTMENT OUTLOOK Our exposure to small companies has not helped the fund, but there are signs that these stocks are beginning to gain momentum after underperforming for the past 12 months. We remain committed to this area and think that over the coming year small-cap stocks will add to your fund's returns. A stable interest rate environment combined with attractive stock valuations and strong growth in company earnings should support continued positive returns. With economic growth expected to extend into 1997, the outlook for European stocks remains good. Respectfully submitted, /s/ Martin G. Wade Martin G. Wade President May 18, 1995 2 - -------------------------------------------------------------------------------- Average Annual Compound Total Returns - -------------------------------------------------------------------------------- Periods Ended April 30, 1995
Since Inception 1 Year 5 Years 2/28/90 -------- --------- --------- 9.1% 7.2% 6.9%
- -------------------------------------------------------------------------------- Note: For the calendar quarter ended 3/31/95, the fund's returns for the above periods were 7.8%, 5.8%, and 6.2%, respectively. Income return and principal value represent past performance and will vary. Shares may be worth more or less at redemption than at original purchase. - -------------------------------------------------------------------------------- Industry Diversification - -------------------------------------------------------------------------------- April 30, 1995
Percent of Net Assets ---------- Consumer Goods 41.9% - -------------------------------------------------------------------------------- Financial/Insurance 13.8 - -------------------------------------------------------------------------------- Utilities 9.6 - -------------------------------------------------------------------------------- Capital Goods 9.3 - -------------------------------------------------------------------------------- Energy 8.9 - -------------------------------------------------------------------------------- Basic Industry 8.6 - -------------------------------------------------------------------------------- Transport/Storage 0.8 - -------------------------------------------------------------------------------- Reserves 7.1 - -------------------------------------------------------------------------------- Total Net Assets 100.0% - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Security Classification - -------------------------------------------------------------------------------- April 30, 1995
Percent Market of Net Cost Value Assets (000) (000) ------- ------ ------ Common Stocks, Rights and Warrants 91.2% $338,417 $397,377 - -------------------------------------------------------------------------------- Preferred Stocks 1.6 5,861 6,755 - -------------------------------------------------------------------------------- Bonds 0.1 444 543 - -------------------------------------------------------------------------------- Short-Term Investments 5.7 24,930 24,930 ----- -------- -------- Total Investments 98.6 369,652 429,605 - -------------------------------------------------------------------------------- Other Assets Less Liabilities 1.4 5,837 5,970 - -------------------------------------------------------------------------------- Total Net Assets 100.0% $375,489 $435,575 - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Twenty-Five Largest Holdings - -------------------------------------------------------------------------------- April 30, 1995
Percent of Net Assets ---------- Wolters Kluwer, Netherlands 3.4% - -------------------------------------------------------------------------------- Elsevier, Netherlands 3.2 - -------------------------------------------------------------------------------- Royal Dutch Petroleum, Netherlands 2.5 - -------------------------------------------------------------------------------- National Westminster Bank, United Kingdom 2.1 - -------------------------------------------------------------------------------- Eaux Cie Generale, France 1.8 - -------------------------------------------------------------------------------- Reed International, United Kingdom 1.8 - -------------------------------------------------------------------------------- SmithKline Beecham, United Kingdom 1.6 - -------------------------------------------------------------------------------- Telecom Italia, Italy 1.5 - -------------------------------------------------------------------------------- BBC Brown Boveri & Cie, Switzerland 1.5 - -------------------------------------------------------------------------------- Polygram, Netherlands 1.4 - -------------------------------------------------------------------------------- Roche Holdings, Switzerland 1.4 - -------------------------------------------------------------------------------- Nestle, Switzerland 1.3 - -------------------------------------------------------------------------------- Astra 'B', Sweden 1.2 - -------------------------------------------------------------------------------- Rank Organisation, United Kingdom 1.2 - -------------------------------------------------------------------------------- Tomkins, United Kingdom 1.2 - -------------------------------------------------------------------------------- LVMH, France 1.1 - -------------------------------------------------------------------------------- Carrefour, France 1.1 - -------------------------------------------------------------------------------- Valeo, France 1.1 - -------------------------------------------------------------------------------- Shell Transport & Trading, United Kingdom 1.1 - -------------------------------------------------------------------------------- Guinness, United Kingdom 1.1 - -------------------------------------------------------------------------------- Cie de St. Gobain, France 1.0 - -------------------------------------------------------------------------------- Glaxo, United Kingdom 1.0 - -------------------------------------------------------------------------------- CSM, Netherlands 1.0 - -------------------------------------------------------------------------------- Internationale Nederlanden Groep, Netherlands 1.0 - -------------------------------------------------------------------------------- Unilever, Netherlands 1.0 - -------------------------------------------------------------------------------- Total 37.6% - --------------------------------------------------------------------------------
3 - -------------------------------------------------------------------------------- Statement of Net Assets T. Rowe Price European Stock Fund / April 30, 1995 (Unaudited) - -------------------------------------------------------------------------------- (value in thousands except capital stock information) - -------------------------------------------------------------------------------- AUSTRIA -- 0.1% - -------------------------------------------------------------------------------- Value -------- PREFERRED STOCKS 2,050 shs. Creditanstalt - Bankverein.................. $ 118 2,600 Maculan..................................... 107 TOTAL AUSTRIA 225 - -------------------------------------------------------------------------------- BELGIUM -- 2.4% - -------------------------------------------------------------------------------- COMMON STOCKS & WARRANTS 233 Audiofina................................... 122 6,500 CMB......................................... 501 1,600 D'Ieteren Trading........................... 119 7,669 Fortis...................................... 790 5,930 Generale Banque............................. 1,867 14,120 Kredietbank................................. 3,504 11,000 wts. *National Portefeuille, 6/15/99.............. 34 4,070 shs. UCB......................................... 3,624 10,561 CORPORATE BOND 4,522,500 BEL Kredietbank, Cv., 5.75%, 11/30/03.................................. 152 TOTAL BELGIUM 10,713 - -------------------------------------------------------------------------------- CZECH REPUBLIC -- 0.1% - -------------------------------------------------------------------------------- COMMON STOCK 3,900 shs. IPS Praha................................... 297 - -------------------------------------------------------------------------------- DENMARK -- 0.7% - -------------------------------------------------------------------------------- COMMON STOCKS 14,070 Den Danske Bank............................. 845 10,000 Incentive................................... 617 3,800 Silcon 'B'.................................. 187 8,030 Tele Danmark 'B'............................ 419 16,740 Unidanmark 'A'.............................. 766 2,834 CORPORATE BOND 900,000 DKK Danske Traelastkompagni, Cv., 5.25%,1/1/02......................... 218 TOTAL DENMARK 3,052 - -------------------------------------------------------------------------------- FINLAND -- 0.4% - -------------------------------------------------------------------------------- COMMON STOCK 11,000 shs. Huhtamaki Oy 'I'............................ 356 PREFERRED STOCK 38,800 shs. Nokia Oy 'A'................................ $ 1,585 TOTAL FINLAND 1,941 - -------------------------------------------------------------------------------- FRANCE -- 13.3% - -------------------------------------------------------------------------------- COMMON STOCKS, RIGHTS & WARRANTS 17,840 Accor....................................... 2,048 10,750 Assurances Generales de France.................................... 356 1,500 Banque Nationale de Paris Intercont................................. 78 1,965 But......................................... 370 1,100 C.E.E....................................... 110 21,200 CMB Packaging............................... 752 2,761 Cardif...................................... 308 9,740 Carrefour................................... 4,886 3,100 Centrale pour L'Industrie................... 183 6,645 Chargeurs................................... 1,325 6,645 rts. *Chargeurs................................... 131 1,000 shs. Christian Dalloz............................ 163 1,000 wts. *Christian Dalloz, 12/31/98.................. 26 34,889 shs. Cie de St. Gobain........................... 4,516 4,000 Cipe France................................. 554 3,600 Club Mediterranee........................... 363 1,527 Concorde.................................... 218 2,700 Dauphin..................................... 143 1,000 De Dietrich & Cie........................... 562 75,244 Eaux Cie Generale........................... 7,932 8,343 Ecco Travail Temporaire..................... 555 39,120 Elf Aquitaine............................... 3,126 3,111 Guilbert.................................... 282 3,682 L'Oreal..................................... 970 25,718 LVMH........................................ 4,893 27,045 Lafarge-Coppee.............................. 2,108 5,000 Legris...................................... 378 3,600 Manutan..................................... 366 3,030 MGI Coutier................................. 322 12,000 Moulinex.................................... 283 12,110 Peugeot..................................... 1,747 7,880 Pinault Printemps........................... 1,783 11,110 Poliet...................................... 983 450 Primagaz.................................... 84 8,600 Rochefortaise Communication............................. 322 2,450 SITA........................................ 346 1,400 Sidel....................................... 409 2,300 Societe Des Immeubles de France................................... 161 6,230 Societe Generale de France.................. 685
4 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4,733 shs. Spir Communication.......................... $ 459 45,918 Television Francaise........................ 4,196 44,650 Total 'B'................................... 2,791 84,150 Valeo....................................... 4,795 7,000 Vallourec................................... 350 1,866 Virbac...................................... 203 3,965 Vulcanic.................................... 140 7,879 Z Groupe Zannier............................ 205 57,966 CORPORATE BOND 174,410 FRF Virbac, Cv., 5.00%, 1/1/01.................. 35 TOTAL FRANCE 58,001 - -------------------------------------------------------------------------------- GERMANY -- 7.5% - -------------------------------------------------------------------------------- COMMON STOCKS 1,470 shs. Allianz Holdings............................ 2,705 800 Altana...................................... 425 1,300 Balcke Durr................................. 324 9,770 Bayer....................................... 2,403 2,071 Bayerische Motoren Werke.................... 1,059 4,882 Deutsche Bank............................... 2,389 2,000 Dorries Scharmann........................... 199 600 Duerr Beteiligungs.......................... 190 550 F.A. Gunther & Sohn......................... 152 9,344 Gehe........................................ 4,017 6,370 Hoechst..................................... 1,362 500 Klein, Schanzlin & Becker................... 106 687 Leffers..................................... 144 14,110 Mannesmann.................................. 3,827 325 Pfleiderer Bau und Verkehrssysteme.......... 128 4,800 Pittler Maschinenfabrik..................... 251 1,111 Plettac..................................... 689 648 Rhon Klinikum............................... 617 4,083 Schering.................................... 3,054 600 Sixt........................................ 151 100 Sixt, participating certificates............ 76 5,443 Veba........................................ 2,026 1,200 Vereinigte Baubeschlag Handel............... 377 140 Victoria Holdings........................... 108 5,434 Volkswagen.................................. 1,505 28,284 PREFERRED STOCKS 540 Edding...................................... 165 155 *Einhell Hans................................ 34 600 Hach........................................ 258 792 Hornbach.................................... 949 650 Klein, Schanzlin & Becker................... 108 875 Leffers..................................... 174 450 Marschollek Lautenschlaeger................. 263 1,000 Porsche..................................... 365 1,650 Signal Bau Huber............................ 220 1,000 Sixt........................................ 228 1,400 Spar Handells............................... 362 601 Sto......................................... 392 2,200 Villeroy & Boch............................. 428 1,828 Westag & Getalit............................ 464 4,410 TOTAL GERMANY 32,694 - -------------------------------------------------------------------------------- HUNGARY -- 0.1% - -------------------------------------------------------------------------------- COMMON STOCKS 310 *Chinoin..................................... 100 28,000 Fotex (ATS)................................. 49 6,800 Richter Gedeon (USD)........................ 115 TOTAL HUNGARY 264 - -------------------------------------------------------------------------------- IRELAND -- 0.3% - -------------------------------------------------------------------------------- COMMON STOCKS 96,000 Abbey....................................... 196 350,000 Barlo Group................................. 229 24,000 Grafton Group............................... 146 600,000 *Kenmare Resources (GBP)..................... 125 181,900 Kingspan Group.............................. 440 TOTAL IRELAND 1,136 - -------------------------------------------------------------------------------- ISRAEL -- 0.1% - -------------------------------------------------------------------------------- COMMON STOCKS 4,000 Discount Investment......................... 265 10,000 Teva Pharmaceutical ADR (USD)................................... 347 TOTAL ISRAEL 612 - -------------------------------------------------------------------------------- ITALY -- 4.0% - -------------------------------------------------------------------------------- COMMON STOCKS & WARRANTS 525 Alleanza Assicurazioni, savings shares...... 5 126,155 Assicurazioni Generali...................... 3,039 84,000 Cementeria di Augusta....................... 118 180,000 Danieli & Company, savings shares........... 580 22,750 wts. *Danieli & Company, 11/30/99................. 18 300,000 shs. Editoriale la Republica..................... 382 33,000 Fila Holdings ADR (USD)..................... 738 59,273 Imi......................................... 362 7,000 Industrie Natuzzi ADR (USD)................. 257 143,281 Italgas..................................... 378 27,624 Merloni Electrodomestici.................... 93
5 - -------------------------------------------------------------------------------- T. Rowe Price European Stock Fund / Statement of Net Assets (Unaudited) - -------------------------------------------------------------------------------- (value in thousands except capital stock information) - -------------------------------------------------------------------------------- ITALY (Cont'd) - -------------------------------------------------------------------------------- 212,624 shs. Merloni Electrodomestici, savings shares............................ $ 340 33,800 Saes Getters................................ 411 32,200 Saes Getters, savings shares................ 178 743,300 Stet........................................ 2,119 319,935 Stet, savings shares........................ 735 309,000 Tecnost..................................... 700 20,000 Telecocavi, savings shares.................. 47 1,538,205 Telecom Italia.............................. 4,105 1,191,230 Telecom Italia, savings shares............................ 2,486 120,000 Vianini Lavori.............................. 194 17,285 CORPORATE BOND 136,500,000 ITL Danieli & Company, 7.25%, 1/1/00............................. 65 TOTAL ITALY 17,350 - -------------------------------------------------------------------------------- NETHERLANDS -- 16.4% - -------------------------------------------------------------------------------- COMMON STOCKS 51,508 shs. ABN Amro Holdings........................... 1,981 3,500 Aalberts Industries......................... 187 1,860 Ahrend Groep................................ 231 24,460 Akzo Nobel.................................. 2,837 3,500 Atag........................................ 266 97,055 CSM......................................... 4,446 1,910 Crown van Gelder............................ 209 4,000 Draka Holdings.............................. 101 1,256,990 Elsevier.................................... 13,768 59,154 Fortis Amev................................. 3,125 7,000 Frans Maas Groep Koninklijke............................... 194 4,500 Hagemeyer................................... 389 7,750 International - Muller...................... 494 82,230 Internationale Nederlanden Groep..................................... 4,334 48,038 Koninklijke PTT Nederland................... 1,674 1,950 Otra........................................ 394 105,146 Polygram.................................... 5,934 3,200 Polynorm.................................... 336 6,500 Randstad Holdings........................... 390 86,990 Royal Dutch Petroleum....................... 10,733 7,200 Sphinx Gustavsberg.......................... 239 31,770 Unilever.................................... 4,251 183,404 Wolters Kluwer.............................. 14,924 71,437 PREFERRED STOCK 10,947 Internationale Nederlanden Groep..................................... 54 TOTAL NETHERLANDS 71,491 - -------------------------------------------------------------------------------- NORWAY -- 2.7% - -------------------------------------------------------------------------------- COMMON STOCKS 19,500 shs. Awilco 'B'.................................. $ 211 22,980 Bergesen 'A'................................ 502 7,480 Det Norske Luftfartselskap 'B'....................... 301 24,910 Kvaerner 'A'................................ 1,140 19,600 Kverneland Gruppen.......................... 291 15,175 Liva Bil 'A'................................ 287 176,051 Moelven Industrier.......................... 247 13,000 Nera........................................ 288 92,975 Norsk Hydro................................. 3,791 11,000 Norske Skogsindustrier 'A'.................. 376 66,844 Orkla 'A'................................... 2,870 20,000 Schibsted................................... 241 26,100 Sensonor.................................... 237 23,000 Smedvig Tankships........................... 162 35,000 Sysdeco Group............................... 258 94,000 Tomra Systems............................... 346 38,500 Wilrig...................................... 300 TOTAL NORWAY 11,848 - -------------------------------------------------------------------------------- POLAND -- 0.2% - -------------------------------------------------------------------------------- COMMON STOCKS 5,040 Bank Slaski................................. 329 40,000 Elektrim.................................... 153 186,843 *International UNP Holdings (CAD)..................................... 75 24,750 Mostostal Export............................ 139 TOTAL POLAND 696 - -------------------------------------------------------------------------------- PORTUGAL -- 0.3% - -------------------------------------------------------------------------------- COMMON STOCKS 16,662 Jeronimo Martins............................ 850 12,000 *Jornalgeste................................. 203 6,000 Lusotur Sociedad Financeira de Tur.................................... 112 4,000 Salvador Caetano............................ 77 14,000 Sumolis Industria de Frutas Bebidas................................... 149 TOTAL PORTUGAL 1,391 - -------------------------------------------------------------------------------- RUSSIA -- 0.1% - -------------------------------------------------------------------------------- COMMON STOCK 52,200 *Petersburg Long Distance (USD)..................................... 255 - -------------------------------------------------------------------------------- SPAIN -- 4.1% - -------------------------------------------------------------------------------- COMMON STOCKS 7,000 Azkoyen..................................... 445 8,114 Banco Popular Espanol....................... 1,108
6 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 23,550 shs. Banco Santander............................. $ 860 131,612 Centros Comerciales Pryca................... 2,330 75,000 Corporacion Financiaera Reunida................................... 243 86,214 Empresa Nacional de Electricidad.............................. 4,075 30,000 Energia e Industrias Aragonesas................................ 154 1,826 Europistas.................................. 16 35,000 Filo........................................ 256 17,500 *Filo, new................................... 126 13,410 Fomento de Construcciones y Contra.................................. 1,231 20,072 Gas Natural................................. 2,005 16,000 Grupo Anaya................................. 421 51,000 Grupo Duro Felguera......................... 194 5,500 Inmobiliaria Metropolitana Vasco..................................... 162 38,820 Marco Iberica Distribucion de Edic................................... 410 12,500 Prosegur Compania Securidad................................. 260 108,138 Repsol...................................... 3,443 50,000 Sotogrande.................................. 120 17,859 CORPORATE BOND 4,500,000 ESP Grupo Anaya, Cv., 7.00%, 3/18/98................................... 37 TOTAL SPAIN 17,896 - -------------------------------------------------------------------------------- SWEDEN -- 5.3% - -------------------------------------------------------------------------------- COMMON STOCKS 35,000 shs. Angpanne Foreningen 'B'..................... 554 24,000 Arjo........................................ 373 13,330 Asea 'A'.................................... 1,125 188,550 Astra 'B'................................... 5,372 189,640 Atlas Copco 'B'............................. 2,610 380,000 BPA 'A'..................................... 654 46,000 Catena 'A'.................................. 329 51,800 Electrolux 'B'.............................. 2,645 23,810 Esselte 'B'................................. 311 21,000 Euroc Industriab 'A'........................ 422 529,000 Finnveden 'B'............................... 513 177,000 Frontline................................... 487 12,104 Gambro 'B'.................................. 158 18,550 Getinge Industrier 'B'...................... 570 21,910 Hennes & Mauritz 'B'........................ 1,481 26,000 *Hoganas 'B'................................. 440 46,700 ICB Shipping 'B'............................ 357 28,000 Kalmar Industries........................... 384 21,000 Linjebuss 'A'............................... 289 81,590 Sandvik 'B'................................. 1,516 52,470 Scribona 'B'................................ 394 6,000 Securitas 'B'............................... 180 55,250 Stena Line 'B'.............................. 279 15,130 Stora Kopparberg 'B'........................ 1,016 24,000 TV 4 'A'.................................... 459 22,918 CORPORATE BOND 281,250 SEK Stena Line, Cv., 7.00%, 4/30/01................................... 36 TOTAL SWEDEN 22,954 - -------------------------------------------------------------------------------- SWITZERLAND -- 7.2% - -------------------------------------------------------------------------------- COMMON STOCKS & WARRANTS 6,520 shs. BBC Brown Boveri & Cie...................... 6,432 135 Bil GT Gruppe, participating certificates.............................. 67 220 Bobst....................................... 299 450 Bossard Holdings............................ 648 200 Bucher Holding.............................. 115 800 wts. *Bucher Holding, 7/21/95..................... 20 200 *Bucher Holding, 10/27/95.................... 0 3,347 shs. CS Holdings................................. 1,398 2,556 Ciba Geigy.................................. 1,748 1,600 Generale D'Affichage........................ 530 165 Gurit Heberlien............................. 338 500 Hilti....................................... 386 450 Magazine Zum Globus......................... 298 1,000 Mikron Holding.............................. 79 3,000 *Mikron Holding, new......................... 236 5,635 Nestle...................................... 5,500 1,400 Porst Holdings.............................. 278 981 Roche Holdings.............................. 5,892 3,499 Sandoz...................................... 2,286 475 *Saurer...................................... 171 1,695 Schweizerische Bankgesellschaft.......................... 1,558 6,660 Schweizerischer Bankverein.................. 2,190 150 Sig Schweiz................................. 338 1,261 Sika Finanz................................. 371 1,800 Suter & Suter............................... 78 3,100 Von Moos.................................... 325 TOTAL SWITZERLAND 31,581 - -------------------------------------------------------------------------------- UNITED KINGDOM -- 27.6% - -------------------------------------------------------------------------------- COMMON STOCKS & WARRANTS 488,080 Abbey National.............................. 3,644 27,000 wts. *Abtrust Lloyds Insurance Trust..................................... 12 256,000 shs. Argos....................................... 1,673 426,000 Argyll Group................................ 1,963
7 - -------------------------------------------------------------------------------- T. Rowe Price European Stock Fund / Statement of Net Assets (Unaudited) - -------------------------------------------------------------------------------- (value in thousands except capital stock information) - -------------------------------------------------------------------------------- UNITED KINGDOM (Cont'd) - -------------------------------------------------------------------------------- 1,463,430 shs. Asda Group.................................. $ 1,919 76,666 Ashtead Group............................... 534 28,250 Avon Rubber................................. 214 89,000 BAA......................................... 680 1,150,000 *BCE Holdings................................ 254 75,000 Baggeridge Brick............................ 158 94,000 Berisford International..................... 369 467,616 Birkdale Group.............................. 40 26,664 *British Biotechnology....................... 213 5,500 wts. *British Biotechnology....................... 4 414,250 shs. British Gas................................. 2,007 177,000 British Petroleum........................... 1,276 315,630 Britton Group............................... 731 611,750 Bruntcliffe Aggregates...................... 285 155,600 CALA........................................ 285 257,777 CRT Group................................... 375 475,110 Cable & Wireless............................ 3,058 440,753 Cadbury Schweppes........................... 3,178 871,810 Caradon..................................... 3,465 125,000 Carpetright................................. 510 427,829 Casket...................................... 107 140,000 Chamberlain Phipps.......................... 393 296,000 Coats Viyella............................... 969 185,000 Corporate Services Group.................... 232 307,578 Crestacare.................................. 158 182,510 David S. Smith.............................. 1,630 62,500 Devro International......................... 236 13,500 Druck Holdings.............................. 320 91,128 East Midlands Electricity................... 961 88,730 Eastern Group............................... 905 171,042 Enviromed................................... 228 90,000 Eurodollar Holdings......................... 314 125,000 Ferraris Group.............................. 155 100,000 Finelist Group.............................. 352 182,570 First National Finance...................... 220 30,000 First Technology............................ 199 86,000 Frost Group................................. 374 379,540 Glaxo....................................... 4,489 639,420 Grand Metropolitan.......................... 4,106 2,062,500 Graystone................................... 423 619,040 Guinness.................................... 4,682 230,000 HTV Group................................... 696 160,000 Halkin Holdings............................. 178 140,580 Heath....................................... 543 55,000 Helical Bar................................. 277 13,000 Henderson Administration Group....................................... 233 100,000 Hi-Tech Sports.............................. 29 675,000 Hobson...................................... 304 110,000 Ibstock..................................... 140 90,000 Ingham...................................... 77 155,000 JBA Holdings................................ 392 202,690 shs. John Laing 'A'.............................. $ 659 60,000 Keller Group................................ 98 71,250 Kenwood Appliances.......................... 323 90,000 Kewill Systems.............................. 406 325,731 Kingfisher.................................. 2,338 377,250 Ladbroke Group.............................. 1,081 167,000 London & Overseas Freighters.................................. 183 323,910 London Electricity.......................... 3,310 44,000 Mackie International Group.................. 168 92,000 Matthew Clark............................... 882 595,000 Mayflower................................... 594 150,000 Millgate.................................... 27 313,000 Mirror Group................................ 677 171,000 Monument Oil & Gas.......................... 175 1,137,500 My Kinda Town............................... 192 230,000 NSM......................................... 378 1,066,410 National Westminster Bank................... 9,301 247,035 Northern Leisure............................ 318 175,000 Oliver Group................................ 259 358,333 Pentos...................................... 0 57,000 Peter Black Holdings........................ 214 70,000 *Pillar Property Investments................. 182 115,000 Pizza Express............................... 254 260,000 *Polly Peck International.................... 0 72,000 Powerscreen International................... 322 78,000 *Precoat International....................... 158 260,000 Princedale Group............................ 105 1,911,369 Prospect Industries......................... 338 119,701 Prowting.................................... 218 104,561 Quadramatic................................. 343 64,000 RJB Mining.................................. 438 178,060 RTZ......................................... 2,258 50,000 Ramco Energy................................ 269 745,625 Rank Organisation........................... 5,100 603,940 Reed International.......................... 7,775 8,645,760 *Regal Hotel Group........................... 209 312,201 Rolls Royce................................. 857 50,000 Rosebys..................................... 93 691,399 *Roxspur..................................... 172 82,500 Serco Group................................. 325 255,000 Shandwick................................... 140 399,310 Shell Transport & Trading................... 4,723 904,100 Smithkline Beecham, equity units................................ 6,955 88,500 South Western Electricity................... 943 269,388 Spring Ram.................................. 173 188,750 Stakis...................................... 257 110,000 Sterling Publishing......................... 57 315,000 Stirling Group.............................. 279 2,917,396 Sunleigh.................................... 164 173,554 Symonds Engineering......................... 84 533,000 T & N....................................... 1,287 337,380 Taylor Nelson............................... 190
8 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 295,500 shs. Tesco....................................... $ 1,327 1,336,770 Tomkins..................................... 5,012 830,000 Tomorrow's Leisure.......................... 127 438,500 Transtec.................................... 515 44,000 Trifast..................................... 184 197,774 UK Estates.................................. 61 165,000 Ugland International........................ 279 311,390 United Newspapers........................... 2,491 120,000 VCI......................................... 319 1,403,892 Verity Group................................ 181 120,000 Vibroplant.................................. 199 225,000 *Videologic Group............................ 152 270,000 WPP Group................................... 474 605,547 Wellman..................................... 390 201,111 Wickes...................................... 353 2,600,000 Wiggins Group............................... 146 830,000 Wills Group................................. 167 119,797 PREFERRED STOCKS 206,800 Berisford International, 5.00% Cv. Loan Stock, 2015....................... 344 27,428 First National Finance, Cum. Cv., 7.00%............................ 58 35,000 Iceland Group, Cum. Cv...................... 79 481 TOTAL UNITED KINGDOM 120,278 - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 5.7% - -------------------------------------------------------------------------------- COMMERCIAL PAPER $5,000,000 ANZ (Delaware), 6.00%, 8/1/95..................................... 4,920 5,000,000 Commerzbank, 6.00%, 7/17/95.................................... 4,931 55,000 President & Fellows Harvard College, 5.93%, 5/1/95..................... 55 5,000,000 U.S. Bancorp, 6.05%, 6/12/95................ 4,927 5,100,000 UBS Finance (Delaware), 5.93%, 5/1/95.............................. 5,097 19,930 OTHER 5,000,000 Avco Financial Services, Floating Rate Medium- Term Note, 6.08168%, 12/21/95.................................... 5,000 TOTAL SHORT-TERM INVESTMENTS 24,930
- -------------------------------------------------------------------------------- TOTAL INVESTMENTS IN SECURITIES -- 98.6% OF NET ASSETS (COST $369,652) $429,605 - -------------------------------------------------------------------------------- OTHER ASSETS LESS LIABILITIES........................................ 5,970 -------- NET ASSETS CONSIST OF: Value -------- Accumulated net investment income - net of distributions.................... $ 2,053 Accumulated net realized gain/loss - net of distributions............................. 2,977 Net unrealized gain (loss)......................... 60,086 Paid-in-capital applicable to 32,950,003 shares of $0.01 par value capital stock outstanding; 2,000,000,000 shares of the Corporation authorized.......................... 370,459 -------- NET ASSETS........................................................... $435,575 ======== NET ASSET VALUE PER SHARE............................................ $13.22 ====== - --------------------------------------------------------------------------------
* Non-income producing (ATS) Austrian schilling (BEL) Belgian franc (CAD) Canadian dollar (DKK) Danish krone (ESP) Spanish peseta (FRF) French franc (GBP) British sterling (ITL) Italian lira (SEK) Swedish krona (USD) U.S. dollar The accompanying notes are an integral part of these financial statements. 9 - -------------------------------------------------------------------------------- Statement of Operations - -------------------------------------------------------------------------------- T. Rowe Price European Stock Fund / Six Months Ended April 30, 1995 (Unaudited) (in thousands) INVESTMENT INCOME Income Dividend (net of foreign taxes of $601).......................... $ 3,665 Interest......................................................... 666 ------- Total income..................................................... 4,331 ------- Expenses Investment management............................................ 1,564 Shareholder servicing............................................ 456 Custody and accounting........................................... 134 Prospectus & shareholder reports................................. 50 Registration..................................................... 47 Legal and audit.................................................. 18 Proxy and annual meeting......................................... 16 Directors........................................................ 6 Miscellaneous.................................................... 12 ------- Total expenses................................................... 2,303 ------- Net investment income.............................................. 2,028 ------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Securities....................................................... 4,140 Foreign currency transactions.................................... (324) ------- Net realized gain (loss)......................................... 3,816 ------- Change in net unrealized gain or loss on: Securities....................................................... 17,215 Other assets and liabilities denominated in foreign currencies............................................. 44 Change in net unrealized gain or loss............................ 17,259 ------- Net realized and unrealized gain (loss)............................ 21,075 ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.................. $23,103 =======
- -------------------------------------------------------------------------------- The accompanying notes are an integral part of these financial statements. 10 - -------------------------------------------------------------------------------- Statement of Changes in Net Assets - -------------------------------------------------------------------------------- T. Rowe Price European Stock Fund (Unaudited) (in thousands)
Six Months Ended Year Ended April 30, 1995 October 31, 1994 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS FROM Operations Net investment income....................................................... $ 2,028 $ 3,815 Net realized gain (loss).................................................... 3,816 13,484 Change in net unrealized gain or loss....................................... 17,259 16,451 -------- --------- Increase (decrease) in net assets from operations........................... 23,103 33,750 -------- --------- Distributions to shareholders Net investment income....................................................... (3,554) (936) Net realized gain........................................................... (1,481) (234) -------- --------- Decrease in net assets from distributions................................... (5,035) (1,170) -------- --------- Capital share transactions* Shares sold................................................................. 137,543 207,976 Distributions reinvested.................................................... 4,733 1,043 Shares redeemed............................................................. (62,267) (169,885) -------- --------- Increase (decrease) in net assets from capital share transactions........... 80,009 39,134 -------- --------- Increase (decrease) in net assets............................................. 98,077 71,714 NET ASSETS Beginning of period........................................................... 337,498 265,784 -------- --------- End of period................................................................. $435,575 $ 337,498 ======== ========= - -------------------------------------------------------------------------------------------------------------------- *Share information Shares sold................................................................. 11,090 17,242 Distributions reinvested.................................................... 393 88 Shares redeemed............................................................. (5,066) (14,183) -------- --------- Increase (decrease) in shares outstanding................................... 6,417 3,147 ======== =========
The accompanying notes are an integral part of these financial statements. 11 - -------------------------------------------------------------------------------- Notes to Financial Statements - -------------------------------------------------------------------------------- T. Rowe Price European Stock Fund / April 30, 1995 (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, the U.S. dollar value of all assets and liabilities initially expressed in foreign currencies is determined by using 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 - Assets and liabilities are translated into U.S. dollars at the prevailing exchange rate at the end of the reporting period. Purchases and sales of securities and income and expenses are translated into U.S. dollars at the prevailing exchange rate on the dates of such transactions. The effect of changes in foreign exchange rates on realized and unrealized security gains and losses is reflected as a component of such gains and 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 and may differ from those determined in accordance with generally accepted accounting principles. NOTE 2- INVESTMENT TRANSACTIONS Purchases and sales of portfolio securities, other than short-term and U.S. government securities, aggregated $82,585,000 and $31,618,000, respectively, for the six months ended April 30, 1995. 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. At April 30, 1995, the aggregate cost of investments for federal income tax and financial reporting purposes was $369,652,000 and net unrealized gain aggregated $59,953,000, of 12 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- which $72,490,000 related to appreciated investments and $12,537,000 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, of which $288,000 was payable at April 30, 1995. The fee is computed daily and paid monthly, and consists 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. At April 30, 1995, and for the six months then ended, the effective annual Group Fee rate was 0.34%. The fund pays a pro rata share of the Group Fee based on the ratio of its net assets to those of the Group. In addition, the fund has entered into agreements with Price Associates and two wholly owned subsidiaries of Price Associates, pursuant to which the fund receives certain other services. Price Associates computes the daily share price and maintains the financial records of the fund. T. Rowe Price Services, Inc. (TRPS) is the fund's transfer and dividend disbursing agent and provides shareholder and administrative services to the fund. T. Rowe Price Retirement Plan Services, Inc. provides subaccounting and recordkeeping services for certain retirement accounts invested in the fund. The fund incurred expenses pursuant to these related party agreements totaling approximately $411,000 for the six months ended April 30, 1995, of which $91,000 was payable at period-end. During the six months ended April 30, 1995, the fund, in the ordinary course of business, paid commissions of $10,000 to, and placed security purchase and sale orders aggregating $4,423,000 with, certain affiliates of the Manager in connection with the execution of various portfolio transactions. 13 - -------------------------------------------------------------------------------- Financial Highlights - -------------------------------------------------------------------------------- T. Rowe Price European Stock Fund (Unaudited)
For a share outstanding throughout each period ------------------------------------------------------------------------------- From February 28, 1990 Six Months Year Ten Months Year ended (Commencement Ended Ended Ended December 31, of Operations) to April 30, October 31, October 31, ------------------ December 31, 1995 1994 1993++ 1992 1991 1990 ------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD............................ $12.72 $11.37 $9.36 $10.09 $9.48 $10.00 ------ ------ ------ ------ ------ ------ Investment Activities Net investment income.......................... 0.05 0.14 0.12 0.14 0.10 0.24* Net realized and unrealized gain (loss)................................. 0.62 1.26 1.89 (0.70) 0.59 (0.56) ------ ------ ------ ------ ------ ------ Total from Investment Activities............... 0.67 1.40 2.01 (0.56) 0.69 (0.32) ------ ------ ------ ------ ------ ------ Distributions Net investment income.......................... (0.12) (0.04) -- (0.17) (0.08) (0.20) Net realized gain.............................. (0.05) (0.01) -- -- -- -- ------ ------ ------ ------ ------ ------ Total Distributions............................ (0.17) (0.05) -- (0.17) (0.08) (0.20) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD.................... $13.22 $12.72 $11.37 $9.36 $10.09 $9.48 ====== ====== ====== ====== ====== ====== - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA Total Return...................................... 5.4% 12.4% 21.5% (5.6)% 7.3% (3.2)%* Ratio of Expenses to Average Net Assets..................................... 1.24%+ 1.25% 1.35%+ 1.48% 1.71% 1.75%+* Ratio of Net Investment Income to Average Net Assets............................. 1.09%+ 1.19% 1.79%+ 1.23% 1.04% 2.30%+* Portfolio Turnover Rate........................... 17.8%+ 24.5% 21.3%+ 52.0% 57.7% 34.9%+ Net Assets, End of Period (in thousands)................................. $435,575 $337,498 $265,784 $173,798 $103,977 $99,447 - ------------------------------------------------------------------------------------------------------------------------------------
++ 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 14 - -------------------------------------------------------------------------------- Shareholder Services - -------------------------------------------------------------------------------- To help shareholders monitor their current investments and make decisions that accurately reflect their financial goals, T. Rowe Price offers a wide variety of information and services--at no extra cost. KNOWLEDGEABLE SERVICE REPRESENTATIVES BY PHONE--Shareholder service representatives are available from 8:00 a.m. to 10:00 p.m., Monday - Friday, and weekends from 9:00 a.m. to 5:00 p.m ET. Call 1-800-225-5132 to speak directly with a representative who will be able to assist you with your accounts. IN PERSON--Visit one of our investor center locations to meet with a representative who will be able to assist you with your accounts. While there, you can drop off applications or obtain prospectuses and other literature. AUTOMATED 24-HOUR SERVICES Tele*Access(R) (1-800-638-2587) provides information such as account balance, date and amount of your last transaction, latest dividend payment, and fund prices and yields. Additionally, you have the ability to request prospectuses, statements, account and tax forms; reorder checks; and initiate purchase, redemption, and exchange orders for identically registered accounts. PC*Access(R) provides the same information as Tele*Access, but on a personal computer via dial-up modem. ACCOUNT SERVICES Checking--Write checks for $500 or more on any money market and most bond fund accounts (except the High Yield Fund and Emerging Markets Bond Fund). Automatic Investing--Build your account over time by investing directly from your bank account or paycheck with Automatic Asset Builder. Additionally, Automatic Exchange enables you to set up systematic investments from one fund account into another, such as from a money fund into a stock fund. A low, $50 minimum makes it easy to get started. Automatic Withdrawal--If you need money from your fund account on a regular basis, you can establish scheduled, automatic redemptions. Dividend and Capital Gains Payment Options--Reinvest all or some of your distributions, or take them in cash. We give you maximum flexibility and convenience. INVESTMENT INFORMATION Combined Statement--A comprehensive overview of your T. Rowe Price accounts. The summary page gives your earnings by tax category, provides total portfolio value, and lists your investments by type--stock, bond, and money market. Detail pages itemize account transactions by fund. Quarterly Shareholder Reports--Portfolio managers review the performance of the funds in plain language and discuss T. Rowe Price's economic outlook. The T. Rowe Price Report--A quarterly newsletter with relevant articles on market trends, personal financial planning, and T. Rowe Price's economic perspective. Insights--A library of information that includes reports on mutual fund tax issues, investment strategies, and financial markets. Detailed Investment Guides--Our widely acclaimed Asset Mix Worksheet, College Planning Kit, Retirees Financial Guide, Retirement Planning Kit (also available on disk for PC use), and Guide to Risk-Adjusted Performance can help you determine and reach your investment goals. DISCOUNT BROKERAGE You can trade stocks, bonds, options, precious metals, and other securities at a substantial savings over regular commission rates. Call a shareholder service representative for more information. 15 - -------------------------------------------------------------------------------- SEMIANNUAL REPORT - -------------------------------------------------------------------------------- T. Rowe Price - ------------- EUROPEAN STOCK FUND APRIL 30, 1995 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 -----END PRIVACY-ENHANCED MESSAGE-----