N-Q 1 poi_fef.txt N-Q ~ INTSTITUTIONAL INTERNATIONAL FUNDS Item 1: Schedule of Investments T. Rowe Price Institutional Foreign Equity Fund (Unaudited) January 31, 2005 PORTFOLIO OF INVESTMENTS (1) ++ (Cost and value in $ 000s) Share Value AUSTRALIA 2.0% Common Stocks 2.0% BHP Billiton * 408,377 5,207 Brambles Industries *ss. 292,600 1,665 Macquarie Bank 56,241 2,133 News Corp. GDR, Class A * 234,339 3,953 Total Australia (Cost $7,814) 12,958 BELGIUM 0.4% Common Stocks 0.4% Fortis * 34,184 924 UCB * 35,106 1,719 Total Belgium (Cost $1,398) 2,643 BRAZIL 1.3% Common Stocks 1.3% Petroleo Brasileiro (Petrobras) ADR (USD) * 145,360 5,211 Tele Norte Leste ADR (USD) * 231,500 3,336 Total Brazil (Cost $5,581) 8,547 CANADA 0.7% Common Stocks 0.7% Research In Motion (USD) * 29,100 2,074 Telus 37,900 1,103 Telus (Non-voting shares) (USD) 55,600 1,557 Total Canada (Cost $4,375) 4,734 CHINA 0.4% Common Stocks 0.4% China Telecom (HKD) * 1,864,000 696 China Telecom, 144A (HKD) ** 5,132,000 1,915 Total China (Cost $2,066) 2,611 DENMARK 0.5% Common Stocks 0.5% Novo Nordisk, Series B * 63,451 3,391 Total Denmark (Cost $1,806) 3,391 FINLAND 1.0% Common Stocks 1.0% Nokia * 401,599 6,149 Total Finland (Cost $691) 6,149 FRANCE 13.8% Common Stocks 13.8% AXA * 160,478 3,903 BNP Paribas *ss. 98,444 7,119 Compagnie de Saint-Gobain * 66,504 4,122 Credit Agricole ss. 200,124 5,975 France Telecom * 219,213 6,895 Groupe Danone *ss. 32,260 3,013 Hermes International * 20,287 3,986 L'Oreal *ss. 20,061 1,506 Lafarge * 7,497 775 LVMH ss. 54,309 3,770 Sanofi-Aventis * 180,190 13,449 Schneider Electric, Series A * 48,842 3,738 Societe Generale * 30,109 3,005 Societe Television Francaise 1 *ss. 105,942 3,453 Sodexho Alliance *ss. 92,179 2,760 STMicroelectronics * 80,307 1,342 Thomson *ss. 74,555 1,896 Total 73,051 15,712 Vivendi Universal * 48,597 1,536 Total France (Cost $44,155) 87,955 GERMANY 2.9% Common Stocks 2.9% Allianz * 15,489 1,841 Bayer * 31,934 1,045 DEPFA Bank * 36,894 650 Deutsche Bank * 27,055 2,306 E.On * 21,310 1,912 Hypo Real Estate * 124,404 4,935 Lanxess * 3,193 62 Rhoen-Klinikum * 11,411 756 SAP * 16,120 2,510 Siemens ss. 29,833 2,371 Total Germany (Cost $11,213) 18,388 GREECE 0.5% Common Stocks 0.5% National Bank of Greece * 94,910 3,206 Total Greece (Cost $2,882) 3,206 HONG KONG 1.4% Common Stocks 1.4% Cheung Kong Holdings * 347,000 3,185 Esprit Holdings 227,000 1,317 Li & Fung * 1,116,000 1,841 Sun Hung Kai Properties 280,000 2,606 Total Hong Kong (Cost $6,677) 8,949 INDIA 0.9% Common Stocks 0.9% I-Flex Solutions * 163,600 2,307 National Thermal Power * 224,200 445 Oil & Natural Gas 4,000 75 Zee Telefilms * 883,000 3,120 Total India (Cost $4,958) 5,947 INDONESIA 0.3% Common Stocks 0.3% Telekomunikasi 3,139,500 1,640 Total Indonesia (Cost $1,716) 1,640 ITALY 4.4% Common Stocks 4.4% Alleanza Assicurazioni * 280,750 3,806 Banca Intesa * 375,760 1,748 Banco Popolare di Verona e Novara * 79,700 1,533 ENI S.p.A. * 347,390 8,470 Mediaset 117,914 1,646 Mediolanum *ss. 165,285 1,226 Telecom Italia Mobile *ss. 31,424 219 Telecom Italia-RNC * 964,764 3,099 UniCredito Italiano * 1,093,793 6,027 Total Italy (Cost $12,434) 27,774 JAPAN 20.7% Common Stocks 20.7% AIFUL * 15,650 1,773 Benesse * 46,700 1,669 Canon 52,400 2,723 Credit Saison *ss. 46,400 1,571 Dai Nippon Printing * 231,000 3,634 Daikin Industries *ss. 79,100 2,124 Daito Trust Construction * 49,700 2,299 Daiwa Securities * 382,000 2,580 Fanuc * 56,400 3,796 Fujisawa Pharmaceutical * 42,100 1,082 Funai Electric *ss. 18,900 2,166 Hoya * 23,600 2,425 JSR *ss. 119,800 2,546 KDDI * 1,197 6,097 Keyence * 9,400 2,152 Kyocera * 29,700 2,132 Leopalace21 * 137,200 2,495 Marui *ss. 129,300 1,723 Matsui Securities *ss. 41,200 1,469 Mitsubishi * 361,000 4,241 Mitsubishi Estate * 169,000 2,129 Mitsubishi Tokyo Financial * 213 2,021 Mitsui Fudosan * 465,000 5,785 Mitsui Trust *ss. 267,000 2,833 NEC * 439,000 2,508 Nidec * 12,700 1,427 Nissan Motor * 317,000 3,367 Nomura * 420,200 5,559 NTT DoCoMo * 692 1,204 Oji Paper * 254,000 1,429 Orix *ss. 24,200 3,190 Resona Holdings * 1,018,000 2,075 Rohm * 23,200 2,114 Secom * 129,500 5,163 Sega Sammy Holdings *ss. 24,600 1,585 Seven-Eleven Japan *ss. 125,900 3,807 Shin-Etsu Chemical * 89,100 3,520 SMC * 13,500 1,573 Sumitomo Mitsui Financial *ss. 872 6,119 Suzuki Motor * 144,000 2,633 T&D Holdings *ss. 41,850 1,963 Takefuji * 5,270 369 Teijin *ss. 405,000 1,678 Toray Industries * 335,000 1,558 Toyota Motor * 167,200 6,532 UFJ * 340 2,035 Uniden * 60,000 1,148 USS * 19,530 1,613 Yamanouchi Pharmaceutical * 89,600 3,251 Yamato Transport *ss. 98,000 1,464 Total Japan (Cost $108,262) 132,349 KAZAKHSTAN 0.4% Common Stocks 0.4% PetroKazakhstan (USD) 71,363 2,568 Total Kazakhstan (Cost $1,919) 2,568 MALAYSIA 0.3% Common Stocks 0.3% Astro All Asia (Ordinary shares) * 1,487,100 2,153 Total Malaysia (Cost $1,678) 2,153 MEXICO 2.5% Common Stocks 2.5% America Movil ADR, Series L (USD) 88,900 4,717 Grupo Financiero Banorte * 233,400 1,499 Grupo Modelo, Series C 846,000 2,280 Grupo Televisa ADR (USD) * 43,600 2,565 Wal-Mart de Mexico, Series V * 1,401,773 4,833 Total Mexico (Cost $9,906) 15,894 NETHERLANDS 3.7% Common Stocks 3.7% ASML Holding *ss. 203,390 3,326 Fortis (Unified shares) * 47,307 1,278 ING Groep GDS * 231,020 6,675 Koninklijke Numico * 82,836 3,178 Philips Electronics * 166,990 4,361 Reed Elsevier * 69,300 937 Royal Dutch Petroleum *ss. 33,359 1,941 Royal KPN * 166,800 1,603 Total Netherlands (Cost $11,524) 23,299 NORWAY 0.3% Common Stocks 0.3% Orkla, Series A * 54,395 1,780 Total Norway (Cost $466) 1,780 RUSSIA 1.2% Common Stocks 1.2% AO VimpelCom ADR (USD) * 57,200 2,071 JSC MMC Norilsk Nickel ADR (USD) * 37,500 2,128 Lukoil ADR, 144A (USD) * 17,390 2,146 Mobile Telesystems ADR (USD) * 37,600 1,353 Total Russia (Cost $6,065) 7,698 SINGAPORE 0.9% Common Stocks 0.9% United Overseas Bank * 496,060 4,215 Venture Manufacturing * 149,000 1,430 Total Singapore (Cost $4,497) 5,645 SOUTH AFRICA 0.2% Common Stocks 0.2% Standard Bank Investment * 134,400 1,463 Total South Africa (Cost $1,264) 1,463 SOUTH KOREA 0.9% Common Stocks 0.9% Hyundai Motor GDR, 144A (USD) 68,200 1,929 Samsung Electronics 8,293 4,000 Total South Korea (Cost $3,107) 5,929 SPAIN 4.3% Common Stocks 4.3% Banco Bilbao Vizcaya Argentaria ss. 394,183 6,653 Banco Santander Central Hispano 344,023 4,086 Endesa 111,189 2,536 Gas Natural ss. 90,840 2,631 Inditex *ss. 83,400 2,366 Repsol ss. 101,668 2,603 Telefonica * 259,885 4,740 Telefonica ADR (USD) * 37,207 2,028 Total Spain (Cost $14,595) 27,643 SWEDEN 2.5% Common Stocks 2.5% Hennes & Mauritz, Series B * 115,050 3,803 LM Ericsson *ss. 559,803 1,647 Securitas, Series B * 467,535 7,393 Tele2, Series B *ss. 85,100 2,918 Total Sweden (Cost $12,898) 15,761 SWITZERLAND 6.0% Common Stocks 6.0% Adecco * 120,521 6,293 Credit Suisse Group * 160,820 6,497 Nestle * 41,016 10,768 Roche Holding (Participation certificates) * 30,327 3,237 UBS * 139,305 11,306 Total Switzerland (Cost $16,097) 38,101 TAIWAN 1.0% Common Stocks 1.0% E.Sun Financial * 2,251,000 1,802 Far Eastone Telecom GDR (USD) * 100,400 1,727 Taiwan Semiconductor Manufacturing * 1,548,456 2,539 Total Taiwan (Cost $5,510) 6,068 THAILAND 0.6% Common Stocks 0.6% Bangkok Bank NVDR 653,300 1,813 Kasikornbank Public NVDR * 1,188,700 1,696 True Corp. * 918,600 245 Total Thailand (Cost $3,501) 3,754 TURKEY 0.7% Common Stocks 0.7% Turkiye Garanti Bankasi * 459,400 1,836 Turkiye Is Bankasi * 469,000 2,750 Total Turkey (Cost $3,727) 4,586 UNITED KINGDOM 21.4% Common Stocks 21.4% AstraZeneca * 165,399 6,220 Autonomy * 83,834 272 British Sky Broadcasting * 214,631 2,286 Cadbury Schweppes * 148,462 1,331 Capita * 143,200 967 Carnival 26,989 1,628 Centrica * 464,189 2,040 Compass * 1,328,850 6,040 David S. Smith * 267,464 805 Diageo * 322,700 4,400 Electrocomponents 327,230 1,862 GlaxoSmithKline 884,155 19,639 Hays * 1,645,806 3,855 Hilton Group * 214,940 1,196 Kesa Electricals 213,315 1,285 Kingfisher * 1,448,103 8,324 MFI Furniture Group * 669,400 1,687 Reed Elsevier (Ordinary shares) * 607,413 5,515 Rio Tinto (Ordinary shares) * 143,257 4,478 Royal Bank of Scotland * 480,122 15,910 Shell Transport & Trading * 1,239,348 10,828 Standard Chartered * 100,100 1,840 Tesco * 728,944 4,228 Tomkins * 508,086 2,587 Unilever N.V. 397,846 3,778 United Business Media * 213,189 2,174 Vodafone 5,207,407 13,485 William Morrison Supermarkets 630,000 2,390 WPP Group * 524,000 5,707 Total United Kingdom (Cost $94,437) 136,757 SHORT-TERM INVESTMENTS 0.1% Money Market Funds 0.1% T. Rowe Price Reserve Investment Fund, 2.39% #+ 514,961 515 Total Short-Term Investments (Cost $515) 515 SECURITIES LENDING COLLATERAL 11.6% Money Market Pooled Account 11.6% Investment in money market pooled account managed by JP Morgan Chase Bank, London, 2.386% # 74,128,973 74,129 Total Securities Lending Collateral (Cost $74,129) 74,129 Total Investments in Securities 109.8% of Net Assets (Cost $481,863) $ 700,984 (1) Denominated in currency of country of incorporation unless otherwise noted ++ At January 31, 2005, a substantial number of the fund's international securities were valued by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. See Note 1 # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at January 31, 2005 - See Note 2 + Affiliated company - See Note 4 * Valued by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers - - total value of such securities at period-end amounts to $5,990 and represents 0.9% of net assets ADR American Depository Receipts GDR Global Depository Receipts GDS Global Depository Shares HKD Hong Kong dollar NVDR Non Voting Depository Receipt USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Institutional Foreign Equity Fund Un-audited January 31, 2005 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price Institutional International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Institutional Foreign Equity Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of established, non-U.S. companies. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. 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. Listed securities not traded on a particular day are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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 The fund may invest in securities of companies located in emerging markets or denominated in or linked to the currencies of emerging market countries. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Restricted Securities The fund may invest in securities that are subject to legal or contractual restrictions on resale. Although certain of these securities may be readily sold, for example, under Rule 144A, others may be illiquid, and their sale may involve substantial delays and additional costs, and prompt sale at an acceptable price may be difficult. 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 managed by the fund's lending agent in accordance with investment guidelines approved by fund management. 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 January 31, 2005, the value of loaned securities was $71,249,000; aggregate collateral consisted of $74,129,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At January 31, 2005, the cost of investments for federal income tax purposes was $481,863,000. Net unrealized gain aggregated $219,169,000 at period-end, of which $228,751,000 related to appreciated investments and $9,582,000 related to depreciated investments. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of January 31, 2005. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates and affiliates of the fund. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. The Reserve Funds pay no investment management fees. During the three months ended January 31, 2005, dividend income from the Reserve Funds totaled $56,000, and the value of shares of the Reserve Funds held at January 31, 2005 and October 31, 2004 was $515,000 and $12,633,000, respectively. T. Rowe Price Institutional Emerging Markets Equity Fund Unaudited January 31, 2005 PORTFOLIO OF INVESTMENTS (1) ++ (Cost and value in $ 000s) Shares Value ARGENTINA 0.8% Common Stocks 0.8% Tenaris ADR (USD) 7,700 380 Total Argentina (Cost $279) 380 BRAZIL 9.7% Common Stocks 8.4% Cia Energetica Minas Gerais (Cemig) 8,524,000 188 Companhia Siderurgica Nacional 14,415 289 Companhia Vale do Rio Doce ADR (USD) 12,700 320 Companhia Vale do Rio Doce ADR (1 ADR represents 1 common share) (USD) 18,230 551 Grendene 3,100 35 Natura Cosmeticos 8,800 215 Petroleo Brasileiro (Petrobras) ADR (USD) 31,500 1,129 Petroleo Brasileiro (Petrobras) ADR (1 ADR represents 1 common share) (USD) 12,600 512 Tele Norte Leste ADR (USD) 14,300 206 Tele Norte Leste Participaco 16,799 291 Telesp Celular Participacoes ADR (USD) * 31,400 195 Votorantim Celulose ADR (USD) 21,250 311 4,242 Preferred Stocks 1.3% Banco Itau Holdings Financiera 3,731 556 Caemi Mineracao e Metalurgica * 139,700 129 685 Total Brazil (Cost $3,492) 4,927 CHINA 4.7% Common Stocks 4.7% China Insurance (HKD) 448,000 187 China Netcom (HKD) * 138,000 198 China Resources Enterprise (HKD) 130,000 191 China Telecom (HKD) 590,000 220 Cnooc (HKD) 544,500 291 Gome Electrical Appliances (HKD) * 309,000 298 Luen Thai Holdings (HKD) * 297,000 152 Panva Gas Holdings (HKD) * 381,000 170 Shanghai Forte Land Company (HKD) 472,000 155 Silver Grant (HKD) * 310,000 154 tom.com (HKD) * 700,000 121 ZTE (HKD) * 67,200 217 Total China (Cost $2,153) 2,354 CZECH REPUBLIC 0.5% Common Stocks 0.5% Komercni Banka 1,806 271 Total Czech Republic (Cost $192) 271 EGYPT 4.5% Common Stocks 4.5% Commercial International Bank 66,335 532 Egyptian Company for Mobile Services 15,696 453 Orascom Construction Industries 22,100 377 Orascom Telecom * 7,970 512 Orascom Telecom GDR (USD) * 5,400 169 Vodafone Egypt * 18,600 226 Total Egypt (Cost $1,348) 2,269 ESTONIA 0.5% Common Stocks 0.5% Hansabank (EUR) 20,500 268 Total Estonia (Cost $227) 268 EUROPE/FAR EAST 1.9% Common Stocks 1.9% iShares MSCI Emerging Markets Index Fund (USD) 4,900 984 Total Europe/Far East (Cost $939) 984 HONG KONG 0.3% Common Stocks 0.3% Kingboard Chemical Holdings 72,500 161 Total Hong Kong (Cost $141) 161 HUNGARY 0.8% Common Stocks 0.8% OTP Bank 12,300 398 Total Hungary (Cost $333) 398 INDIA 8.6% Common Stocks 8.6% Arvind Mills * 130,736 367 Ballarpur Industries 28,050 55 Ballarpur Industries (Regulation S shares) 3,600 7 Bharti Tele-Ventures * 63,000 333 HDFC Bank 19,000 248 HDFC Bank ADR (1 ADR represents 3 ordinary shares) 3,300 147 (USD) I-Flex Solutions 20,000 282 ITC 8,950 281 Kotak Mahindra Finance 33,000 216 LIC Housing Finance * 38,704 188 National Thermal Power * 194,400 386 Petronet LNG * 281,700 285 Power Trading 92,700 114 Tata Tea 20,300 227 UTI Bank 63,700 303 Videsh Sanchar Nigam ADR (USD) 39,000 392 Zee Telefilms 142,500 503 Total India (Cost $3,120) 4,334 INDONESIA 0.9% Common Stocks 0.9% Indosat 456,800 284 Telekomunikasi 336,000 176 Total Indonesia (Cost $330) 460 ISRAEL 4.2% Common Stocks 4.2% Bank Hapoalim 153,700 555 Bank Leumi 173,800 537 Lipman Electronic Engineering (USD) 2,600 76 Makhteshim-Agan Industries 120,300 649 Partner Communications ADR (USD) * 36,940 307 Total Israel (Cost $1,605) 2,124 KAZAKHSTAN 1.0% Common Stocks 1.0% PetroKazakhstan (USD) 13,471 485 Total Kazakhstan (Cost $400) 485 MALAYSIA 4.2% Common Stocks 4.2% Astro All Asia (Ordinary shares) * 306,700 444 CIMB Berhad 211,800 318 Hong Leong Bank 130,500 189 IJM 125,800 162 Malayan Banking Berhad 110,800 359 Malaysian Industrial Development Finance Berhad 325,300 122 MK Land Holdings 246,300 118 Sime Darby 90,000 152 Symphony House 287,850 61 Symphony House, Warrants, 4/28/09 * 32,250 2 Tenaga Nasional 67,000 189 Total Malaysia (Cost $2,038) 2,116 MEXICO 7.3% Common Stocks 7.3% America Movil ADR, Series L (USD) 24,900 1,321 Consorcio ARA * 44,100 160 Grupo Aeroportuario del Sureste ADR (USD) 5,900 157 Grupo Financiero Banorte 61,000 392 Grupo Modelo, Series C 64,000 172 Grupo Televisa ADR (USD) 7,624 449 Organizacion Soriana, Series B 41,500 147 Telmex ADR (USD) 139 5 Urbi Desarrollos Urbanos * 41,900 227 Wal-Mart de Mexico, Series V 190,334 656 Total Mexico (Cost $2,546) 3,686 RUSSIA 3.4% Common Stocks 3.4% AO VimpelCom ADR (USD) * 15,800 572 Gazprom ADR (USD) 4,300 150 Lukoil (USD) 5,010 156 Lukoil ADR (USD) 2,830 349 MMC Norilsk Nickel (USD) 3,900 224 Mobile Telesystems ADR (USD) 7,600 273 Total Russia (Cost $1,178) 1,724 SOUTH AFRICA 11.7% Common Stocks 11.7% ABSA Group 47,600 611 African Bank Investments 143,700 405 Edgars Consolidated Stores 5,800 292 Impala Platinum Holdings 3,980 334 Investec 7,000 204 JD Group 23,790 259 Massmart Holdings * 30,600 215 MTN Group Limited 98,000 740 Naspers (N shares) 71,900 903 Pick 'N Pay Stores 49,900 200 SABMiller 18,400 283 Sanlam 265,690 563 Standard Bank Investment 39,596 431 Sun International * 18,400 210 Truworths * 96,200 275 Total South Africa (Cost $4,343) 5,925 SOUTH KOREA 14.3% Common Stocks 12.8% Amorepacific 1,715 372 Cheil Communications 1,140 170 CJ Internet * 7,395 79 Daewoo Shipbuilding & Marine Engineering 9,970 179 Hanaro Telecom * 50,664 179 Hyundai Department Store 3,370 124 Hyundai Motor 1,060 60 Hyundai Motor GDR, 144A (USD) 5,100 144 Kookmin Bank 9,510 410 Kookmin Bank ADR (USD) * 1,400 61 Kumgang Korea Chemical 2,630 391 LG Electronics 7,180 494 Lotte Chilsung Beverage * 360 315 NCsoft * 2,630 193 S-Oil 7,000 450 Samsung Electronics 3,150 1,519 Shinhan Financial 10,600 266 Shinsegae 1,510 424 SK Corporation 4,180 223 Woori Finance Holdings 48,950 441 6,494 Preferred Stocks 1.5% Hyundai Motor 15,900 520 Samsung Electronics 770 240 760 Total South Korea (Cost $5,468) 7,254 TAIWAN 7.8% Common Stocks 7.8% Advantech 142,795 331 Basso Industry 82,000 182 Cathay Financial Holdings 314,000 619 Cheng Shin Rubber Industry 111,488 135 Chinatrust Financial 487,733 549 E.Sun Financial * 476,000 381 E.Sun Financial GDR, 144A (USD) * 1,800 36 Far Eastern Department Stores 222,000 122 Far Eastern Textile 348,505 253 Formosa Petrochemical * 94,000 176 Polaris Securities 210,000 106 Quanta Computer 157,226 263 Taishin Financial Holdings 490,887 443 Taiwan Cellular 143,000 149 Via Technologies * 187,000 95 Yuanta Core Pacific 166,063 122 Total Taiwan (Cost $3,685) 3,962 THAILAND 2.8% Common Stocks 2.8% Bangkok Bank NVDR 120,000 333 C.P. 7-Eleven 69,800 103 Kasikornbank Public NVDR * 231,800 331 Land & Houses NVDR 989,200 254 Ratchaburi Electricity Generating Holding * 163,300 169 Siam Commercial Bank 110,500 143 Siam Commercial Bank NVDR 66,000 85 Total Thailand (Cost $1,177) 1,418 TURKEY 5.9% Common Stocks 5.9% Akbank * 35,000 218 Anadolou Efes Biracilik Ve Malt Sanayii * 8,000 161 Arcelik * 31,000 200 Denizbank * 123,649 369 Dogus Otomotiv * 6,000 20 Finansbank * 171,600 385 Hurriyet * 193,000 498 Turkcell Iletisim Hizmet * 33,000 242 Turkcell Iletisim Hizmet ADR (USD) 2,469 44 Turkiye Garanti Bankasi * 74,000 296 Turkiye Is Bankasi * 97,000 569 Total Turkey (Cost $2,108) 3,002 SHORT-TERM INVESTMENTS 1.2% Money Market Funds 1.2% T. Rowe Price Reserve Investment Fund, 2.39% #+ 579,717 580 Total Short-Term Investments (Cost $580) 580 Total Investments in Securities 97.0% of Net Assets (Cost $37,682) $ 49,082 (1) Denominated in currency of country of incorporation unless otherwise noted ++ At January 31, 2005, a substantial number of the fund's international securities were valued by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. See Note 1 # Seven-day yield * Non-income producing + Affiliated company - See Note 4 * Valued by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers - - total value of such securities at period-end amounts to $180 and represents 0.4% of net assets ADR American Depository Receipts EUR Euro GDR Global Depository Receipts HKD Hong Kong dollar NVDR Non Voting Depository Receipt USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Institutional Emerging Markets Equity Fund Unaudited January 31, 2005 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price Institutional International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Institutional Emerging Markets Equity Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of companies located (or with primary operations) in emerging markets. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. 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. Listed securities not traded on a particular day are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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 The fund may invest in securities of companies located in emerging markets or denominated in or linked to the currencies of emerging market countries. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Restricted Securities The fund may invest in securities that are subject to legal or contractual restrictions on resale. Although certain of these securities may be readily sold, for example, under Rule 144A, others may be illiquid, and their sale may involve substantial delays and additional costs, and prompt sale at an acceptable price may be difficult. NOTE 3 - FEDERAL INCOME TAXES At January 31, 2005, the cost of investments for federal income tax purposes was $37,682,000. Net unrealized gain aggregated $11,404,000 at period-end, of which $11,794,000 related to appreciated investments and $390,000 related to depreciated investments. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of January 31, 2005. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates and affiliates of the fund. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. The Reserve Funds pay no investment management fees. During the three months ended January 31, 2005, dividend income from the Reserve Funds totaled $8,000, and the value of shares of the Reserve Funds held at January 31, 2005 and October 31, 2004 was $580,000 and $2,093,000, respectively. Item 2. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely. (b) The registrant's principal executive officer and principal financial officer are aware of no change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. T. Rowe Price Institutional International Funds, Inc. By /s/ James S. Riepe ----------------------------------- James S. Riepe Principal Executive Officer Date March 22, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ James S. Riepe ----------------------------------- James S. Riepe Principal Executive Officer Date March 22, 2005 By /s/ Joseph A. Carrier ----------------------------------- Joseph A. Carrier Principal Financial Officer Date March 22, 2005