<DOCUMENT>
<TYPE>N-30D
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<FILENAME>fef.txt
<DESCRIPTION>FOREIGN EQUITY FUND
<TEXT>
Semiannual Report
April 30, 2002
Foreign Equity Fund
T. Rowe Price
Invest with Confidence (registered trademark)
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Dear Investor
It is now just over two years since global markets peaked at the height of the
technology bubble. In this difficult phase for most equity investors, the
half-year ended April 30, 2002, has been the first six-month stretch since March
2000 that international stock markets overall have not fallen. During this more
settled period, the major markets of Europe and Japan witnessed modest
recoveries while some of the smaller emerging markets enjoyed a more robust
rebound.
Performance Comparison
--------------------------------------------------------------------------------
Periods Ended 4/30/02 6 Months 12 Months
Foreign Equity Fund 7.38% -14.07%
MSCI EAFE Index 5.66 -13.62
Lipper International
Funds Average 7.10 -12.91
--------------------------------------------------------------------------------
Your portfolio participated in the global recovery of the past six months,
performing somewhat better than the unmanaged MSCI EAFE Index and broadly in
line with the Lipper benchmark for similar funds. Within our peer group, funds
with a value bias fared best as sectors like autos and materials led the way
while funds with a growth bias, including yours, tended to lag. During the past
12-month period, your fund trailed the MSCI EAFE Index and Lipper. The primary
reasons for the trailing annual results were the portfolio's emphasis on growth
during a period when the market favored value stocks, and our underweight
position in Japan, which recovered sharply in recent months.
Geographic Diversification
--------------------------------------------------------------------------------
Europe Japan Far East Other and Latin America
--------------------------------------------------------------------------------
74 11 9 4 2
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MARKET REVIEW
After the trauma of last September and the subsequent stock market upturn,
investors have been focusing on the timing and likely shape of the economic
recovery. The fears of the fourth quarter of 2001 were replaced by growing
confidence during the first quarter of 2002, fueled by improving economic
figures around the world. The proponents of a stronger recovery could point
to the sharp declines in interest rates in most regions and the likely
rebuilding of inventories. First-quarter growth turned out to be stronger
than many had anticipated-but much of this seems to have been inventory
liquidation and rebuilding, backed by moderate growth in final sales. The
key issue now is whether final demand will kick in. Current signs are
mixed, and ever wary of uncertainty, investors have taken a cautious view.
Looking at various international markets, those most geared to economic
recovery fared best-with emerging markets at the forefront. The Japanese
economy has marched to a different and more subdued drummer than the rest
of the world for the last decade-yet even there, some data have suggested
some faint but visible signs of possible economic recovery on the horizon.
PORTFOLIO REVIEW
Media
Your portfolio continued its significantly overweight position in media
stocks, even as news affecting the sector was mixed. In advertising,
pressure on fees from large corporate clients has kept revenue growth in
check, although profitability remains robust. With some recovery in demand,
there should be a return to above-average growth. WPP Group, one of our
larger holdings, performed relatively well over the period. Resilient
earnings performance and the potential for upward revisions in earnings
growth, along with a fairly modest stock valuation, underpinned the share
price. Good performance from WPP and from our professional publishing
stocks Reed Elsevier and VNU helped propel relatively strong results in
this sector.
Services
Our stocks in the services sector also did well. The best performer was
Adecco in the temporary employment segment. The company is the global
leader in this area, with a strong position in the U.S. market following
its acquisitions (most notably of Olsten) of the past few years. Temporary
employment has been a growth area in Europe as companies exert increasing
control over costs. In some countries, legal restrictions constrained
growth in the past, but these restrictions are beginning to be relaxed.
Countries such as Italy, Spain, and Japan are relatively untapped sources
of growth for Adecco, which, when combined with the potential for economic
recovery in the more established markets of the U.S., U.K., and France,
have helped lift share prices.
Industry Diversification
--------------------------------------------------------------------------------
Percent of Percent of
Net Assets Net Assets
10/31/01 4/30/02
--------------------------------------------------------------------------------
Financials 22.3% 22.1%
Consumer Discretionary 17.1 17.4
Health Care 12.6 12.1
Information Technology 9.5 9.2
Energy 8.7 9.0
Consumer Staples 7.8 8.7
Industrials and Business Services 6.7 8.0
Telecommunication Services 8.9 7.7
Materials 2.2 2.7
All Other 1.0 0.9
Reserves 3.2 2.2
Total 100.0% 100.0%
--------------------------------------------------------------------------------
Technology
While the overall sector had a difficult time, your portfolio's tech
holdings delivered relatively good performance. However, there was a broad
disparity within the group, with key positive contributors Samsung
Electronics up 120%, Taiwan Semiconductor Manufacturing (TSMC) up 43%, and
Canon up 32%, while at the other end of the spectrum LM Ericsson was down
42% and Nokia was off 21%. Samsung's performance was driven by its ability
to manage its dominant position in dynamic random access memory chips
profitably and by the impressive improvement in its market position in
mobile handsets. Although the shares have risen strongly, they are still
selling for less than 10 times earnings-an extremely low price/earnings
multiple. TSMC benefited from the first glimmer of recovery in the
semiconductor cycle and from its success in attracting outsourced business
to its leading-edge semiconductor capacity. LM Ericsson and Nokia, on the
other hand, were hampered by the disappointing developments in the
telecommunications equipment market-the former by telecom operators
postponing capital expenditures on mobile networks and the latter by a
perception that the mobile handset industry is reaching a plateau in its
growth cycle.
Telecommunications
This sector has been under intense pressure for much of the last two years
as it continued to slip while other sectors recovered. In the wireline
area, previously steady revenues have begun to recede, partly because of
the encroachment of mobile on fixed-line service, and partly due to the
negative effects of overaggressive tariff policies. With many of the
players in this industry now in financial distress, the competitive
landscape should begin to improve once excess capacity is worked through.
Within the mobile area, penetration levels are reaching the saturation
point in several markets, so revenue growth depends more and more on
increased use by subscribers. The big hope had been for greater use of data
services, but this development continues to get pushed further into the
future. One of our holdings, Vodafone, was negatively affected as the
company's growth prospects were scaled back. The shares now trade at a
discount to the overall U.K. market by many measures of value. However, any
hint of increased revenues per user should boost share prices, so we have
added to our position. Telecoms in emerging markets have not been hurt as
much, since less of their growth was expected to come from data.
Accordingly, our positions in KT Corporation, South Korea Telecom, and
America Movil held up much better than the developed market telecoms.
Market Performance
---------------------------------------------------------------------------
Six Local
Months Currency
Ended Local vs. U.S. U.S.
4/30/02 Curre Dollars Dollars
---------------------------------------------------------------------------
France 4.04% 0.04% 4.09%
Germany 10.76 0.04 10.81
Hong Kong 25.83 0.01 25.84
Italy 6.36 0.04 6.41
Japan 6.32 -4.67 1.35
Mexico 31.10 -1.31 29.38
Netherlands 11.77 0.04 11.82
Singapore 30.18 0.69 31.08
Sweden -1.02 3.50 2.45
Switzerland 10.10 0.79 10.97
United Kingdom 4.44 0.21 4.66
Source: RIMES Online, using MSCI indices.
--------------------------------------------------------------------------------
Energy
With increasing tension in the Middle East and rumblings in the U.S. over
the future of Iraq's Saddam Hussein, oil prices have risen. The underlying
supply/demand balance has also been positive for oil prices, with economies
recovering and non-OPEC supply growing more slowly. We increased our
exposure in Russia, where oil companies have historically had a somewhat
patchy record of corporate governance and have struggled to escape the
management practices of the Soviet era. However, over the past year there
have been encouraging changes, and earlier this year we added YUKOS to the
portfolio. The company has been at the forefront of improved corporate
governance in the sector-bringing in a Canadian CFO-and at importing
foreign management techniques to the oil operation (for example, using
Schlumberger to significantly improve the oil recovery process). Valuations
remain low and, despite some risk, we see substantial upside potential in
this stock.
Pharmaceuticals
Patent expirations, disappointing new products, and pricing issues have
sapped confidence in what has historically been one of the more secure
growth sectors. The key question for investors in pharmaceutical stocks is
whether the productivity and value of the large sums sunk into research and
development will continue to fall. Many stocks are selling at valuations
that are as low as they have been since the early 1990s, when the stocks
were pummeled over earnings concerns related to Hillary Clinton's proposals
for health care reform. On balance, we find the risk/return trade-off
attractive and have added to positions in some pharmaceutical
stocks-notably Takeda Chemical Industries in Japan, which had been selling
for 19 times this year's projected earnings. Financials Banks have been one
of the better-performing sectors over the last six months as fears that bad
loans would rise significantly have so far proved overdone. As investors
factored in steady bad debt charges, valuations appeared increasingly
attractive with many European banks selling at 11 to 13 times earnings.
Historically, these companies have sold at low valuations because they are
highly leveraged and have a cyclical earnings pattern. However, the longer
the sector can avoid serious pain on the debt front, the higher the stock
valuations investors are likely to accord them. We continue to see upside
potential in retail banks such as Royal Bank of Scotland, but banks with
capital market exposure have fared worse. Japan is a different story as
concerns about the health of the financial system reached a crescendo
during the first quarter. We believe this sector in Japan will continue to
struggle for a few more years.
Cyclicals
More cyclical sectors of the markets had a very strong run. Materials
(including metals, construction, and chemicals), autos, and capital goods
stocks were among the best performers. As with the banks, management is
showing more discipline in allocating capital-such that the roller-coaster
cycles of overcapacity and falling demand should be less severe going
forward. Earnings growth in several of these sectors should be good this
year, but we do not believe these mature industries can maintain this rate
of growth long term. We have some exposure here but are underweight versus
the benchmark index.
INVESTMENT OUTLOOK
The broad economic background remains uncertain, but we expect a steady but
moderate recovery in the U.S. and Europe after the robust first quarter.
Growth is likely to be muted in the medium term, given the stretched
condition of the U.S. consumer, who remains an important driver of world
growth.
In Japan, we see stabilization rather than clear recovery because of the
magnitude of the problems still facing the country. There are signs that
the authorities are beginning to respond to the economic crisis with a
looser monetary policy and a bias toward a weaker yen. These measures
should allow the government to advance its so-called reform program to some
degree, but they are not sufficient to propel the country strongly out of
its decade-long recession. Latin America is having a tough time with
Argentina in disarray and Brazil facing political uncertainty. Mexico is a
relative paragon of virtue in the region, and we remain optimistic about
its eventual convergence with U.S. economic growth.
Stock valuations around the world are reasonable but not at bargain
basement levels, with some of the traditional growth sectors looking quite
depressed while cyclical and defensive sectors appear more stretched.
Interest rates are currently low in many countries, providing a favorable
backdrop for stocks, and we believe the portfolio is well positioned
geographically and by sector for the type of market performance we envision
through the rest of the year.
Respectfully submitted,
John R. Ford
President, T. Rowe Price International Funds, Inc.
May 17, 2002
Portfolio Highlights
Twenty-Five Largest Holdings
Percent of
Net Assets
Company Country 4/30/02
--------------------------------------------------------------------------------
GlaxoSmithKline United Kingdom 4.2%
Reed Elsevier United Kingdom/
Netherlands 2.9
TotalFinaElf France 2.9
Royal Bank of Scotland United Kingdom 2.7
Shell Transport & Trading/ United Kingdom/
Royal Dutch Petroleum Netherlands 2.5
Nestle Switzerland 2.2
BNP Paribas France 1.8
Vodafone United Kingdom 1.8
Aventis France 1.7
ING Groep Netherlands 1.7
Adecco Switzerland 1.6
Philips Electronics Netherlands 1.6
Securitas Sweden 1.5
WPP Group United Kingdom 1.4
Compass United Kingdom 1.4
Canon Japan 1.4
Sanofi-Synthelabo France 1.4
Intesa BCI Italy 1.4
AstraZeneca United Kingdom 1.3
ENI Italy 1.3
Samsung Electronics South Korea 1.2
Nokia Finland 1.2
Sony Japan 1.2
UBS Switzerland 1.2
Brambles Industries United Kingdom/
Australia 1.1
Total 44.6%
--------------------------------------------------------------------------------
Portfolio Highlights
--------------------------------------------------------------------------------
Security Classification
--------------------------------------------------------------------------------
Percent Market
As of of Net Cost Value
4/30/02 Assets (000) (000)
--------------------------------------------------------------------------------
Common Stocks 96.7% 1,441,114 1,661,096
Preferred Stocks 1.1 18,167 18,373
Short-Term
Investments 9,054 9,054
Total Investments 98.3 1,468,335 1,688,523
Other Assets Less
Liabilities 29,478 29,509
Net Assets 100% 1,497,813 1,718,032
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Summary of Investments and Cash
April 30, 2002
--------------------------------------------------------------------------------
Percent of
Equities Cash Total MSCI EAFE
Europe
Austria -- -- -- 0.2%
Belgium 0.8% -- 0.8% 1.1%
Denmark 0.4% -- 0.4% 0.8%
Finland 1.2% -- 1.2% 1.7%
France 13.9% -- 13.9% 10.3%
Germany 3.4% -- 3.4% 7.7%
Greece 0.1% -- 0.1% 0.3%
Ireland 0.0% -- 0.0% 0.7%
Italy 6.3% -- 6.3% 4.2%
Luxembourg 0.0% -- 0.0% --
Netherlands 7.5% -- 7.5% 5.9%
Norway 0.4% -- 0.4% 0.6%
Portugal 0.4% -- 0.4% 0.4%
Russia 0.5% -- 0.5% --
Spain 3.0% -- 3.0% 3.2%
Sweden 3.0% -- 3.0% 2.0%
Switzerland 5.8% -- 5.8% 7.8%
United Kingdom 27.7% -- 27.7% 24.9%
Total Europe 74.4% 0.0% 74.4% 71.8%
Pacific Basin
Australia 1.5% -- 1.5% 3.7%
Hong Kong 1.6% -- 1.6% 2.0%
India 1.0% -- 1.0% --
Japan 11.2% -- 11.2% 21.4%
Malaysia 0.2% -- 0.2% --
New Zealand -- -- -- 0.1%
Singapore 1.3% -- 1.3% 1.0%
South Korea 2.4% -- 2.4% --
Taiwan 1.2% -- 1.2% --
Thailand 0.2% -- 0.2% --
Total Pacific Bas 20.6% 0.0% 20.6% 28.2%
Middle East
Egypt -- -- -- --
Israel 0.1% -- 0.1% --
Turkey -- -- -- --
Total Middle East 0.1% 0.0% 0.1% 0.0%
Americas
Argentina -- -- -- --
Brazil 0.7% -- 0.7% --
Canada 0.7% -- 0.7% --
Chile -- -- -- --
Mexico 1.3% -- 1.3% --
Panama -- -- -- --
Peru -- -- -- --
United States -- 0.5% 0.5% --
Venezuela -- -- -- --
Total Americas 2.7% 0.5% 3.2% 0.0%
Other Assets Less 1.7% -- 1.7% --
TOTAL* 99.5% 0.5% 100.0% 100.0%*
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* Total may not add to 100.0% due to rounding.
--------------------------------------------------------------------------------
Foreign Equity Fund
4/30/02
Performance Comparison
--------------------------------------------------------------------------------
This chart shows the value of a hypothetical $10,000 investment in the fund over
the past 10 fiscal year periods or since inception (for funds lacking 10-year
records). The result is compared with a broad-based average or index. The index
return does not reflect expenses, which have been deducted from the fund's
return.
Foreign Equity Fund
--------------------------------------------------------------------------------
MSCI Lipper Foreign
EAFE International Equity
--------------------------------------------------------------------------------
4/92 10,000 10,000 10,000
4/93 12,206 11,006 10,878
4/94 14,274 13,392 13,538
4/95 15,114 13,483 13,779
4/96 16,889 15,732 16,227
4/97 16,788 16,870 17,401
4/98 20,017 20,683 20,394
4/99 21,980 21,275 21,754
4/00 25,095 26,062 26,345
4/01 21,066 21,413 21,275
4/02 18,197 18,860 18,281
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Total Return Performance
--------------------------------------------------------------------------------
Calendar
Periods Year-
Ended to-
4/30/02 1 Month 3 Months Date 1 Year 3 Years* 5 Years* 10 Years*
--------------------------------------------------------------------------------
Foreign
Equity Fund -0.75% 5.76% 0.61% -14.07% -5.63% 0.99% 6.22%
S&P 500
Index -6.06 -4.41 -5.81 -12.63 -5.74 7.55 12.22
MSCI EAFE
Index 0.72 6.97 1.30 -13.62 -6.10 1.62 6.17
Lipper
International
Funds Average 0.29 6.06 1.53 -12.91 -3.94 2.02 6.31
FT-A Euro
Pacific
Index 0.71 7.00 1.82 -12.71 -5.46 1.80 6.11
--------------------------------------------------------------------------------
* Average annual compound total return. This table shows how the fund would
have performed each year if its actual (or cumulative) returns for the
periods shown had been earned at a constant rate. Investment return and
principal value represent past performance and will vary. Shares may be
worth more or less at redemption than at original purchase. Returns do not
reflect taxes that the shareholder may pay on fund distributions or the
redemption of fund shares.
Financial Highlights
--------------------------------------------------------------------------------
Foreign Equity Fund
(Unaudited)
For a share outstanding throughout each period
6 Months Year
Ended Ended
4/30/02 10/31/01 10/31/00 10/31/99 10/31/98 10/31/97
--------------------------------------------------------------------------------
NET ASSET VALUE
Beginning
of period $12.70 $19.16 $20.08 $17.03 $16.51 $15.62
Investment activities
Net investment
income (loss) 0.08 0.39 0.13 0.21 0.28 0.21
Net realized and
unrealized
gain (loss) 0.85 (5.35) 0.46 3.26 0.93 1.07
Total from
investment
activities 0.93 (4.96) 0.59 3.47 1.21 1.28
Distributions
Net investment
income (0.42) (0.11) (0.17) (0.29) (0.21) (0.22)
Net realized
gain -- (1.39) (1.34) (0.13) (0.48) (0.17)
Total
distributions (0.42) (1.50) (1.51) (0.42) (0.69) (0.39)
NET ASSET VALUE
End of period $13.21 $12.70 $19.16 $20.08 $17.03 $16.51
---------------------------------------------------------------
Ratios/Supplemental Data
Total
return(diamond) 7.38% (28.02)% 2.45% 20.79% 7.65% 8.30%
Ratio of total
expenses to
average net
assets 0.75%! 0.74% 0.74% 0.74% 0.74% 0.75%
Ratio of net
investment
income (loss)
to average
net assets 0.72%! 2.25% 0.57% 1.08% 1.58% 1.40%
Portfolio
turnover
rate 19.7%! 21.4% 39.7% 18.2% 18.6% 15.9%
Net assets, end
of period
(in millions) $1,718 $1,903 $3,138 $3,361 $3,204 $3,160
--------------------------------------------------------------------------------
(diamond) Total return reflects the rate that an investor would have earned on
an investment in the fund during each period, assuming reinvestment
of all distributions.
! Annualized
The accompanying notes are an integral part of these financial statements.
--------------------------------------------------------------------------------
Portfolio of Investments
Foreign Equity Fund
April 30, 2002 (Unaudited)
Shares Value
--------------------------------------------------------------------------------
In thousands
AUSTRALIA 1.5%
Common Stocks 0.9%
BHP 722,000 $ 4,190
Brambles
Industries (miscelleaneous footnote symbo 1,216,219 6,575
National Australia Bank 234,900 4,387
15,152
Preferred Stocks 0.6%
News Corporation 1,822,265 10,048
10,048
Total Australia (Cost $27,140) 25,200
BELGIUM 0.8%
Common Stocks 0.8%
Dexia (miscelleaneous footnote symbol) 431,510 7,110
Fortis (miscelleaneous footnote symbol) 170,278 3,907
UCB 60,630 2,211
Total Belgium (Cost $7,920) 13,228
BRAZIL 0.7%
Common Stocks 0.2%
Brasileira de Distribuicao Grupo
Pao de Acucar ADR (USD) 129,000 3,031
Companhia Vale do Rio Doce ADR
(1 ADR represents 1 common
stock) (USD) * 27,300 745
3,776
Preferred Stocks 0.5%
Petroleo
Brasileiro (Petrobras) 357,960 8,325
8,325
Total Brazil (Cost $9,750) 12,101
CANADA 0.7%
Common Stocks 0.7%
Alcan Aluminum 75,930 2,804
Celestica (USD) * 234,662 6,500
Royal Bank of Canada 88,190 3,092
Total Canada (Cost $10,172) 12,396
DENMARK 0.4%
Common Stocks 0.4%
Novo
Nordisk (miscelleaneous footnote symbol) 100,300 2,939
TDC A/S (miscelleaneous footnote symbol) 117,026 3,373
Total Denmark (Cost $7,230) 6,312
FINLAND 1.2%
Common Stocks 1.2%
Nokia (miscelleaneous footnote symbol) 1,275,741 $ 20,631
Total Finland (Cost $3,005) 20,631
FRANCE 13.9%
Common Stocks 13.9%
Altran Technologies 62,670 3,273
Aventis (miscelleaneous footnote symbol) 416,462 29,569
AXA 604,044 12,809
BNP
Paribas (miscelleaneous footnote symbol) 602,936 31,489
Cap
Gemini (miscelleaneous footnote symbol) 19,409 1,132
Compagnie de
Saint-Gobain (miscelleaneous footnote symbol) 57,513 9,840
Groupe
Danone (miscelleaneous footnote symbol) 18,280 2,420
Hermes 36,408 5,616
L'Oreal 16,482 1,290
Lafarge (miscelleaneous footnote symbol) 16,127 1,529
LVMH (miscelleaneous footnote symbol) 43,096 2,253
Orange * 433,720 2,499
Pinault Printemps
Redoute (miscelleaneous footnote symbol) 31,771 3,605
Sanofi-Synthelabo
(miscelleaneous footnote symbol) 373,000 23,863
Schneider Electric 209,142 10,085
Societe
Generale (miscelleaneous footnote symbol) 89,414 6,119
Societe Television
Francaise 1
(miscelleaneous footnote symbol) 504,482 14,355
Sodexho
Alliance (miscelleaneous footnote symbol) 359,879 13,934
STMicroelectronics
(miscelleaneous footnote symbol) 234,153 7,274
Thomson
Multimedia *
(miscelleaneous footnote symbol) 52,700 1,440
TotalFinaElf
(Class B) (miscelleaneous footnote symbol) 323,322 48,969
Vivendi
Universal (miscelleaneous footnote symbol) 176,434 5,622
Total France (Cost $166,281) 238,985
GERMANY 3.4%
Common Stocks 3.4%
Allianz (miscelleaneous footnote symbol) 69,589 16,383
Bayer (miscelleaneous footnote symbol) 91,604 3,000
Bayerische Hypo-und
Vereinsbank
(miscelleaneous footnote symbol) 61,163 2,145
Deutsche
Bank (miscelleaneous footnote symbol) 162,425 10,765
Deutsche
Telekom (miscelleaneous footnote symbol) 71,712 952
E.On (miscelleaneous footnote symbol) 111,098 5,783
Gehe (miscelleaneous footnote symbol) 139,652 5,847
Gehe (New Shares)
*(miscelleaneous footnote symbol) 24,942 1,018
Rhoen-Klinikum 54,002 3,161
SAP 45,580 5,935
Siemens 47,127 $ 2,865
Total Germany (Cost $49,574) 57,854
GREECE 0.1%
Common Stocks 0.1%
Hellenic Telecommunications
Organization 103,270 1,596
Total Greece (Cost $1,383) 1,596
HONG KONG 1.6%
Common Stocks 1.6%
Cheung Kong
Holdings (miscelleaneous footnote symbol) 934,670 8,899
CNOOC 1,576,500 2,092
Henderson Land Development 1,387,050 6,758
Hutchison Whampoa 1,015,626 8,888
Total Hong Kong (Cost $19,915) 26,637
INDIA 1.0%
Common Stocks 1.0%
Hindustan Lever 2,543,450 10,539
ICICI 1,676,000 1,917
ICICI ADR (USD) 260,570 1,657
Reliance Industries * 686,000 3,908
Total India (Cost $25,028) 18,021
IRELAND 0.0%
Common Stocks 0.0%
SmartForce ADR (USD) * 133,598 855
Total Ireland (Cost $2,204) 855
ISRAEL 0.1%
Common Stocks 0.1%
Check Point Software
Technologies (USD) * 91,285 1,656
Total Israel (Cost $1,781) 1,656
ITALY 6.3%
Common Stocks 6.3%
Alleanza
Assicurazioni
(miscelleaneous footnote symbol) 976,630 9,454
Assicurazioni Generali 136,217 3,290
Bipop-Carire
(miscelleaneous footnote symbol) 803,160 1,436
ENI (miscelleaneous footnote symbol) 1,436,031 22,047
Intesa
BCI *(miscelleaneous footnote symbol) 7,200,058 23,275
Mediaset (miscelleaneous footnote symbol) 137,511 $ 1,151
Mediolanum (miscelleaneous footnote symbol) 448,735 3,839
Olivetti (miscelleaneous footnote symbol) 1,836,687 2,109
San Paolo
IMI (miscelleaneous footnote symbol) 111,476 1,242
Telecom Italia
(Ordinary shares)
(miscelleaneous footnote symbol) 1,210,614
9,625
Telecom Italia
(Savings shares)
(miscelleaneous footnote symbol) 201,400 1,079
Telecom Italia
Mobile (miscelleaneous footnote symbol) 3,087,926 13,485
UniCredito
Italiano (miscelleaneous footnote symbol) 3,459,169 16,041
Total Italy (Cost $95,522) 108,073
JAPAN 11.2%
Common Stocks 11.2%
Canon 627,000 24,015
Daiichi Pharmaceutical 181,000 3,530
Fanuc 79,900 4,429
Fuji Television Network 744 4,286
Fujisawa
Pharmaceutical
(miscelleaneous footnote symbol) 453,000 11,073
Hitachi Chemical 168,900 2,135
Ito-Yokado 91,000 4,484
Kyocera 76,000 5,171
Marui 517,000 6,367
Matsushita Electric Industrial 205,000 2,745
Mitsui Fudosan 714,000 5,603
Murata Manufacturing 113,500 7,184
NEC 403,000 3,106
Nippon Telegraph & Telephone 927 3,644
Nomura Securities 555,000 7,734
NTT
DoCoMo (miscelleaneous footnote symbol) 786 1,989
NTT DoCoMo
(Bonus shares)
*(miscelleaneous footnote symbol) 5,764 14,673
Sankyo 133,000 2,024
Seven-Eleven Japan 295,000 11,046
Shin-Etsu Chemical 121,800 5,016
Shiseido 331,000 3,672
Sony 377,080 20,255
Sumitomo 764,000 4,663
Takeda Chemical Industries 132,000 5,775
Takefuji 26,690 1,928
Toshiba * 914,000 4,262
Toyota Motor 462,500 12,602
Yamanouchi Pharmaceutical 317,000 8,736
Total Japan (Cost $179,667) 192,147
LUXEMBOURG 0.0%
Common Stocks 0.0%
Societe Europeenne des Satellites 65,520 $ 661
Total Luxembourg (Cost $1,047) 661
MALAYSIA 0.2%
Common Stocks 0.2%
Malayan Banking Berhad 1,451,600 3,514
Total Malaysia (Cost $3,371) 3,514
MEXICO 1.3%
Common Stocks 1.3%
America Movil (Series L)
ADR (USD) 350,400 6,535
Femsa UBD Units
(Represents 1 Series B and
4 Series D shares) 1,948,690 9,357
Grupo Televisa ADR (USD) * 110,164 4,979
Telmex (Series L) ADR (USD) 52,604 1,990
Total Mexico (Cost $16,212) 22,861
NETHERLANDS 7.5%
Common Stocks 7.5%
Akzo Nobel 26,831 1,153
ASM
Lithography
*(miscelleaneous footnote symbol) 589,240 13,371
Equant 50,950 461
Fortis (miscelleaneous footnote symbol) 373,084 8,563
ING Groep 1,102,260 29,081
Koninklijke Ahold 198,800 4,967
Philips Electronics 888,550 27,419
Reed Elsevier 458,890 6,363
Royal Dutch Petroleum 186,108 9,854
Royal KPN 923,900 4,185
VNU (miscelleaneous footnote symbol) 585,964 17,676
Wolters
Kluwer (miscelleaneous footnote symbol) 322,670 6,537
Total Netherlands (Cost $109,451) 129,630
NORWAY 0.4%
Common Stocks 0.4%
Orkla
(Class A) (miscelleaneous footnote symbol) 317,395 5,778
Statoil *(miscelleaneous footnote symbol) 107,370 913
Total Norway (Cost $4,245) 6,691
PORTUGAL 0.4%
Common Stocks 0.4%
Jeronimo Martins * 212,981 $ 1,774
Portugal Telecom * 610,127 4,450
Total Portugal (Cost $6,441) 6,224
RUSSIA 0.5%
Common Stocks 0.5%
YUKOS ADR (USD) 52,650 7,766
Total Russia (Cost $5,335) 7,766
SINGAPORE 1.3%
Common Stocks 1.3%
DBS 315,000 2,433
Flextronics (USD) * 338,331 4,701
United Overseas Bank 1,873,560 14,886
Total Singapore (Cost $23,275) 22,020
SOUTH KOREA 2.4%
Common Stocks 2.4%
KT Corporation ADR (USD) 279,787 6,337
POSCO ADR (USD) 140,884 3,445
Samsung Electronics 70,583 20,918
Shinhan Financial 406,600 5,520
South Korea Telecom 26,900 5,248
Total South Korea (Cost $25,400) 41,468
SPAIN 3.0%
Common Stocks 3.0%
Banco Bilbao Vizcaya
Argentaria
(miscelleaneous footnote symbol) 1,197,853 13,957
Banco Santander Central
Hispano (miscelleaneous footnote symbol) 1,277,173 11,822
Endesa 413,755 6,334
Inditex * 57,661 1,189
Repsol 240,432 2,951
Telefonica 1,079,461 11,547
Telefonica ADR (USD) 113,931 3,681
Total Spain (Cost $44,994) 51,481
SWEDEN 3.0%
Common Stocks 3.0%
Electrolux
(Class B) (miscelleaneous footnote symbol) 303,305 5,040
Hennes & Mauritz
(Class B) (miscelleaneous footnote symbol) 466,550 $ 9,249
LM Ericsson
(Class B)
*(miscelleaneous footnote symbol) 2,214,070 5,551
Nordea (miscelleaneous footnote symbol) 827,945 4,707
Sandvik (miscelleaneous footnote symbol) 52,170 1,207
Securitas
(Class B) (miscelleaneous footnote symbol) 1,423,135 26,416
Total Sweden (Cost $51,569) 52,170
SWITZERLAND 5.8%
Common Stocks 5.8%
Adecco (miscelleaneous footnote symbol) 439,020 27,749
Credit Suisse 108,420 3,861
Nestle 163,030 38,504
Roche (Participation
certificates)
(miscelleaneous footnote symbol) 119,900 9,076
UBS 416,132 20,041
Total Switzerland (Cost $62,318) 99,231
TAIWAN 1.2%
Common Stocks 1.2%
Taiwan Semiconductor
Manufacturing 6,511,183 16,433
United Microelectronics 2,474,000 3,782
Total Taiwan (Cost $17,113) 20,215
THAILAND 0.2%
Common Stocks 0.2%
Bangkok Bank (Local Shares)* 3,486,000 4,151
Total Thailand (Cost $4,420) 4,151
UNITED KINGDOM 27.7%
Common Stocks 27.7%
Abbey National 317,554 5,046
AstraZeneca 488,643 22,883
Autonomy * 43,000 227
BG Group 374,951 1,674
BP 1,863,304 15,891
Brambles Industries 2,525,960 12,510
Cable & Wireless 965,740 2,546
Cadbury Schweppes 1,257,318 9,533
Celltech * 465,496 3,851
Centrica 774,810 2,384
Compass 3,895,950 24,232
David S. Smith 458,325 1,095
Diageo 1,095,803 $ 14,541
Dimension Data * 303,000 268
Electrocomponents 955,010 6,051
Friends Provident 557,580 1,494
GKN 94,050 440
GlaxoSmithKline 2,989,321 72,281
Granada 3,585,123 6,723
Hays 2,800,587 7,027
Hilton 569,940 2,127
HSBC
(HKD) (miscelleaneous footnote symbol) 632,000 7,516
J. Sainsbury 1,058,530 6,167
Kingfisher 1,002,688 5,601
Lattice 547,400 1,479
Reckitt Benckiser 120,000 2,124
Reed Elsevier 4,423,164 43,296
Rio Tinto 1,025,496 19,045
Royal Bank of Scotland 1,634,602 46,857
Shell Transport & Trading 4,770,603 33,945
Standard Chartered 325,100 4,001
Tesco 3,631,264 13,911
Tomkins 2,284,616 8,785
Unilever 1,260,666 11,532
United Business Media 303,789 2,319
Vodafone 19,188,627 30,955
Woolworths 1,204,977 922
WPP Group 2,302,400 24,415
Total United Kingdom (Cost $477,518) 475,694
SHORT-TERM INVESTMENTS 0.5%
Money Market Funds 0.5%
T. Rowe Price Reserve
Investment Fund, 2.07% # 9,053,782 9,054
Total Short-Term
Investments (Cost $9,054) 9,054
Total Investments in Securities
98.3% of Net Assets
(Cost $1,468,335) 1,688,523
Other Assets Less Liabilities 29,509
NET ASSETS $1,718,032
----------
--------------------------------------------------------------------------------
# Seven-day yield
* Non-income producing
(miscelleaneous footnote symbol) All or a portion of this security is on
loan at April 30, 2002. See Note 2
ADR American Depository Receipts
HKD Hong Kong dollar
USD United States dollar
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign Equity Fund
April 30, 2002 (Unaudited)
In thousands
Assets
Investments in securities,
at value (cost $1,468,335) $1,688,523
Securities lending collateral 362,912
Other assets 38,294
Total assets 2,089,729
Liabilities
Obligation to return
securities lending collateral 362,912
Other liabilities 8,785
Total liabilities 371,697
NET ASSETS $1,718,032
----------
Net Assets Consist of:
Undistributed net
investment income (loss) 5,295
Undistributed net
realized gain (loss) (353,046)
Net unrealized gain
(loss) 220,218
Paid-in-capital applicable
to 130,022,308 shares
of $0.01 par value capital
stock outstanding;
1,000,000,000 shares
authorized 1,845,565
NET ASSETS $1,718,032
----------
NET ASSET VALUE PER SHARE $ 13.21
-----------
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Statement of Operations
Foreign Equity Fund
(Unaudited)
In thousands
6 Months
Ended
4/30/02
Investment Income (Loss)
Income
Dividend (net of foreign
taxes of $1,592) 12,067
Securities lending 666
Interest (net of foreign
taxes of $15) 369
Total income 13,102
Expenses
Investment management 6,247
Custody and accounting 348
Registration 29
Legal and audit 18
Shareholder servicing 9
Directors 8
Prospectus and shareholder reports 6
Proxy and annual meeting 2
Miscellaneous 17
Total expenses 6,684
Net investment income (loss) 6,418
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (146,493)
Foreign currency transactions 509
Net realized gain (loss) (145,984)
Change in net unrealized gain (loss)
Securities 273,390
Other assets and liabilities
denominated in foreign currencies 352
Change in net unrealized gain (loss) 273,742
Net realized and unrealized gain (loss) 127,758
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $134,176
--------
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
Foreign Equity Fund
(Unaudited)
In thousands
x 6 Months Year
x Ended Ended
x 4/30/02 10/31/01
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 6,418 $ 58,702
Net realized gain (loss) (145,984) (205,527)
Change in net
unrealized gain (loss) 273,742 (706,219)
Increase (decrease) in net
assets from operations 134,176 (853,044)
Distributions to shareholders
Net investment income (58,733) (18,177)
Net realized gain -- (229,687)
Decrease in net assets
from distributions (58,733) (247,864)
Capital share transactions *
Shares sold 111,619 470,105
Distributions reinvested 43,451 195,976
Shares redeemed (415,906) (799,534)
Increase (decrease) in
net assets from capital
share transactions (260,836) (133,453)
Net Assets
Increase (decrease)
during period (185,393) (1,234,361)
Beginning of period 1,903,425 3,137,786
End of period 1,718,032 1,903,425
*Share information
Shares sold 8,620 29,947
Distributions reinvested 3,342 11,218
Shares redeemed (31,787) (55,065)
Increase (decrease) in
shares outstanding (19,825) (13,900)
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
Foreign Equity Fund
April 30, 2002 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Institutional International Funds, Inc. (the corporation) is
registered under the Investment Company Act of 1940. The Foreign Equity
Fund (the fund), a diversified, open-end management investment company, is
the sole portfolio established by the corporation and commenced operations
on September 7, 1989. The fund seeks long-term growth of capital through
investments primarily in the common stocks of established, non-U.S.
companies.
The accompanying financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America,
which require the use of estimates made by fund management.
Valuation Equity securities are valued at the last quoted sale price, or
official closing price for certain markets, at the time the valuations are
made. A security that 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.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
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.
Currency Translation Assets and liabilities denominated in foreign
currencies are translated into U.S. dollar values each day at the
prevailing exchange rate, using the mean of the bid and ask prices of such
currencies against U.S. dollars quoted by a major bank. Purchases and sales
of securities, 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.
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 the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend
date. Credits earned on daily uninvested cash balances at the custodian are
used to reduce the fund's custody charges.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Emerging Markets At April 30, 2002, approximately 11% of the fund's net
assets were invested 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.
Securities Lending The fund lends its securities to approved brokers to
earn additional income. It receives as collateral cash and U.S. government
securities valued at 102% to 105% of the value of the securities on loan.
Cash collateral is invested in a money market pooled account by the fund's
lending agent. Collateral is maintained over the life of the loan in an
amount not less than the value of loaned securities, as determined at the
close of fund business each day; any additional collateral required due to
changes in security values is delivered to the fund the next business day.
Although risk is mitigated by the collateral, the fund could experience a
delay in recovering its securities and a possible loss of income or value
if the borrower fails to return the securities. At April 30, 2002, the
value of loaned securities was $345,937,000; aggregate collateral consisted
of $362,912,000 in the securities lending collateral pool and U.S.
government securities valued at $393,000.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $172,450,000 and $462,761,000, respectively, for the
six months ended April 30, 2002.
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 to
shareholders all of its taxable income and capital gains. Income and
capital gain distributions determined in accordance with federal income tax
regulations differ from net investment income and realized gains recognized
for financial reporting purposes and, accordingly, the character of
distributions and composition of net assets for tax purposes differ from
those reflected in the accompanying financial statements.
The fund intends to retain realized gains that may be offset by available
capital loss carryforwards for tax purposes. As of October 31, 2001, the
fund's most recent tax year-end, the fund had $206,390,000 of capital loss
carryforwards available to offset future realized gains, all which expire
in 2009.
At April 30, 2002, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$1,468,335,000. Net unrealized gain aggregated $220,188,000 at period-end,
of which $429,638,000 related to appreciated investments and $209,450,000
related to depreciated investments.
Note 4 - FOREIGN TAXES
The fund is subject to foreign income taxes imposed by certain countries in
which it invests. Foreign income taxes are accrued by the fund as a
reduction of income.
NOTE 5 - RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price International, Inc. (the manager), a
wholly owned subsidiary of T. Rowe Price Associates, Inc. (Price
Associates), which is wholly owned by T. Rowe Price Group. The investment
management agreement between the fund and the manager provides for an
annual investment management fee, of which $1,008,000 was payable at April
30, 2002. The fee is computed daily and paid monthly, and is equal to 0.70%
of average daily net assets.
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. 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. Expenses
incurred pursuant to these related party agreements totaled approximately
$63,000 for the six months ended April 30, 2002, of which $10,000 was
payable at period-end.
The fund may invest in the T. Rowe Price Reserve Investment Fund and T.
Rowe Price Government Reserve Investment Fund (collectively, the Reserve
Funds), open-end management investment companies managed by Price
Associates. The Reserve Funds are offered as cash management options only
to mutual funds and other accounts managed by Price Associates and/or its
affiliates, and are not available to the public. The Reserve Funds pay no
investment management fees. Distributions from the Reserve Funds to the
fund for the six months ended April 30, 2002, totaled $147,000 and are
reflected as interest income in the accompanying Statement of Operations.
NOTE 6 - INTERFUND BORROWING
Pursuant to the fund's prospectus, the fund may borrow up to 331_3% of its
total assets. The fund is party to an interfund borrowing agreement between
the fund and other T. Rowe Price-sponsored mutual funds, which permits it
to borrow or lend cash at rates beneficial to both the borrowing and
lending funds. Loans totaling 10% or more of a borrowing fund's total
assets are collateralized at 102% of the value of the loan; loans of less
than 10% are unsecured. During the six months ended April 30, 2002, the
fund borrowed amounts ranging from $16,600,000 to $21,600,000, on 7 days,
at a weighted average rate of 2.19%. There were no borrowings outstanding
at April 30, 2002.
Foreign Equity Fund
About the Fund's Directors and Officers
--------------------------------------------------------------------------------
Your fund is governed by a Board of Directors that meets regularly to review
investments, performance, expenses, and other business matters, and is
responsible for protecting the interests of shareholders. The majority of the
fund's directors are independent of T. Rowe Price Associates, Inc.; "inside"
directors are officers of T. Rowe Price. The Board of Directors elects the
fund's officers, who are listed in the final table. The business address of each
director and officer is 100 East Pratt Street, Baltimore, MD 21202.
Independent Directors
Name
(Date of Birth)
Year Elected**
[Number of T. Rowe Price Principal Occupation(s) During Past 5 Years and
Portfolios Overseen] Other Directorships of Public Companies
--------------------------------------------------------------------------------
Calvin W. Burnett, Ph.D. President, Coppin State College; Director,
(3/16/32) Provident Bank of Maryland
2001
--------------------------------------------------------------------------------
Anthony W. Deering Director, Chairman of the Board, President, and
(1/28/45) Chief Executive Officer, The Rouse Company,
1991 real estate developers
--------------------------------------------------------------------------------
Donald W. Dick, Jr. Principal, EuroCapital Advisors, LLC, an
(1/27/43) acquisition and management advisory firm
1989
--------------------------------------------------------------------------------
David K. Fagin Director, Dayton Mining Corp. (6/98 to
(4/9/38) present), Golden Star Resources Ltd., and
2001 Canyon Resources Corp.
--------------------------------------------------------------------------------
F. Pierce Linaweaver President, F. Pierce Linaweaver & Associates,
(8/22/34) Inc., consulting environmental and civil
2001 engineers
--------------------------------------------------------------------------------
Hanne M. Merriman Retail Business Consultant; Director, Ann
(11/16/41) Taylor Stores Corp., Ameren Corp., Finlay
2001 Enterprises, Inc., The Rouse Company, and US
Airways Group, Inc.
--------------------------------------------------------------------------------
John G. Schreiber Owner/President, Centaur Capital Partners, Inc.,
(10/21/46) a real estate investment company; Senior
2001 Advisor and Partner, Blackstone Real Estate
Advisors, L.P.; Director, AMLI Residential
Properties Trust, Host Marriott Corp., and The
Rouse Company
--------------------------------------------------------------------------------
Hubert D. Vos Owner/President, Stonington Capital Corp., a
(8/2/33) private investment company
2001
--------------------------------------------------------------------------------
Paul M. Wythes Founding Partner, Sutter Hill Ventures, a
(6/23/33) venture capital limited partnership, providing
1996 equity capital to young high-technology
companies throughout the United States;
Director, Teltone Corp.
--------------------------------------------------------------------------------
James S. Riepe Director and Managing Director, T. Rowe Price;
(6/25/43) Vice Chairman of the Board, Director, and
2002 [98] Managing Director, T. Rowe Price Group, Inc.;
Chairman of the Board and Director, T. Rowe
Price Investment Services, Inc., T. Rowe Price
Retirement Plan Services, Inc., and T. Rowe
Price Services, Inc.; Chairman of the Board,
Director, President, and Trust Officer, T. Rowe
Price Trust Company; Director, T. Rowe Price
International, Inc., and T. Rowe Price Global
Investment Services Limited; Vice President,
Institutional International Funds
--------------------------------------------------------------------------------
M. David Testa Chief Investment Officer, Director, and
Managing Director, T.Rowe Price; Vice Chairman
1989 [98] of the Board, Chief Investment Officer,
Director, and Managing Director, T. Rowe Price
Group, Inc.; Director and Chairman of the
Board, T. Rowe Price Global Asset Management
Limited; Vice President and Director, T. Rowe
Price Trust Company; Director, T. Rowe Price
Global Investment Services Limited and T. Rowe
Price International, Inc.; Vice President,
Institutional International Funds
--------------------------------------------------------------------------------
Martin G. Wade Managing Director, T. Rowe Price; Director and
(2/16/43) Managing Director, T. Rowe Price Group, Inc.;
1989 [15] Chairman of the Board and Director, T. Rowe
Price Global Investment Services Limited and
T. Rowe Price International, Inc.; Director,
T. Rowe Price Global Asset Management Limited;
Chairman of the Board, Institutional
International funds
--------------------------------------------------------------------------------
Mark C.J. Bickford-Smith Vice President, Institutional International
(4/30/62) Funds, Vice President, T. Rowe Price Group,
Inc. and T. Rowe Price International, Inc.
--------------------------------------------------------------------------------
Joseph A. Carrier Treasurer, Institutional International Funds,
(12/30/60) Vice President, T. Rowe Price, T. Rowe Price
Group, Inc., and T. Rowe Price Investment
Services, Inc.
--------------------------------------------------------------------------------
John R. Ford President, Institutional International Funds,
(11/25/57) Managing Director, T. Rowe Price and T. Rowe
Price Group, Inc.; Director, Chief Investment
Officer, and Vice President, T. Rowe Price
International, Inc.
--------------------------------------------------------------------------------
Henry H. Hopkins Vice President, Institutional International
(12/23/42) Funds, Managing Director, T. Rowe Price;
Director and Managing Director, T. Rowe Price
Group, Inc.; Vice President, T. Rowe Price
International, Inc. and T. Rowe Price
Retirement Plan Services, Inc.; Vice President
and Director Investment Services, Inc., T. Rowe
Inc., T. Rowe Price Services, Inc., and T. Rowe
Price Trust Company
--------------------------------------------------------------------------------
Patricia B. Lippert Secretary, Institutional International Funds
(1/12/53) Assistant Vice President, T. Rowe Price and
T. Rowe Price Investment Services, Inc.
--------------------------------------------------------------------------------
David S. Middleton Controller, Institutional International Funds,
(1/18/56) Vice President, T. Rowe Price, T. Rowe Price
Group, Inc., and T. Rowe Price Trust Company
--------------------------------------------------------------------------------
George A. Murnaghan Vice President, Institutional International
(5/1/56) Funds, Managing Director, T. Rowe Price and
T. Rowe Price Group, Inc.; Vice President,
T. Rowe Price International, Inc., T. Rowe
Price Investment Services, Inc., and T. Rowe
rice Trust Company
--------------------------------------------------------------------------------
R. Todd Ruppert Vice President, Institutional International
(5/7/56) Funds, Managing Director, T. Rowe Price and
T. Rowe Price Group, Inc.; Director, Chief
Investment Officer, and President, T. Rowe
Price Global Asset Management Limited and
T. Rowe Price Global Investment Services
Limited; Vice President, T. Rowe Price
Retirement Plan Services and T. Rowe Price
Trust Company
--------------------------------------------------------------------------------
James B.M. Seddon Vice President, Institutional International
6/17/64) Funds, Vice President, T. Rowe Price Group, Inc.
and T. Rowe Price International, Inc.
--------------------------------------------------------------------------------
David J.L. Warren Vice President, Institutional International
(4/14/57) Funds, Managing Director, T. Rowe Price and
T. Rowe Price Group, Inc.; Director, Chief
Executive Officer, and President, T. Rowe Price
International, Inc.; Director, T. Rowe Price
Global Asset Management Limited
--------------------------------------------------------------------------------
William F. Wendler II Vice President, Institutional International
(3/14/62) Funds, Vice President, T. Rowe Price, T. Rowe
Price Group, Inc., and T. Rowe Price
International, Inc.
--------------------------------------------------------------------------------
Edward A. Wiese, CFA Vice President, Institutional International
(4/12/59) Funds, Vice President, T. Rowe Price, T. Rowe
Price Group, Inc., and T. Rowe Price Trust
Company; Director, Chief Investment Officer,
and Vice President, T. Rowe Price Savings Bank
--------------------------------------------------------------------------------
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
</TEXT>
</DOCUMENT>