N-30D 1 fef.txt SEMIANNUAL REPORT FOREIGN EQUITY FUND Semiannual Report April 30, 2002 Foreign Equity Fund T. Rowe Price Invest with Confidence (registered trademark) -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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%* -------------------------------------------------------------------------------- * 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 -------------------------------------------------------------------------------- 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.