<PAGE>
FELLOW SHAREHOLDERS
After a promising start in January, most world markets turned weaker during the
three months ended April 30. The trigger was a reversal in U.S. monetary policy
when the Federal Reserve started to increase the fed funds rate in February for
the first time in five years. Although the Fed described its move as a normal
adjustment following a long period of monetary ease, bond markets took fright
and pulled equities down with them. Not surprisingly, the sharpest reversals
came from the markets of Southeast Asia which looked overextended following
their phenomenal performance in 1993. Given their closer monetary and economic
ties with the U.S., the markets of Latin America also corrected sharply.
European markets held up a little better and there was a sharp rally in Italy.
The most important exception to the generally weak market trend was Japan, where
the rise was due entirely to the upward move of the yen against the U.S.
currency.
In the currency markets, the main feature was persistent weakness of the
dollar, which failed to react to an upward move in U.S. interest rates. The yen
was the star performer as it resumed its all time high against the U.S.
currency,
MARKET PERFORMANCE
<TABLE>
<CAPTION>
3 Months Ended 4/30/94
-------------------------------------
Local Currency
Local vs. U.S. In U.S.
Currency Dollars Dollars
-------------------------------------
<S> <C> <C> <C>
Australia -9.4% 0.6% -8.9%
France -6.2 4.2 -2.2
Germany 2.2 5.3 7.6
Hong Kong -19.8 0.0 -19.8
Italy 19.0 6.9 27.2
Japan -2.8 7.4 4.4
Netherlands -4.7 5.1 0.1
Norway -7.9 4.2 -4.1
Singapore -3.4 2.5 -1.1
Spain -10.7 4.3 -6.9
Sweden -6.7 3.6 -3.3
Switzerland -12.0 4.2 -8.3
United Kingdom -9.1 1.2 -8.1
================================================================
</TABLE>
but Continental European currencies were also generally firm.
Given this adverse background, it was difficult for the International Stock
Fund to make further progress. Its return was disappointing against the Morgan
Stanley Capital International Europe, Australia and Far East (EAFE) Index, which
benefited from its high weighting in Japan, but was marginally better than the
U.S. market's.
PERFORMANCE COMPARISON
<TABLE>
<CAPTION>
Periods Ended 4/30/94
3 Months 6 Months
---------------------
<S> <C> <C>
International Stock Fund - 4.6% 6.4%
MSCI EAFE* - 0.5 5.6
S&P 500 - 5.8 - 2.3
========================================================
</TABLE>
*Net of withholding taxes
MARKET REVIEW
In the Pacific, the most important feature of the quarter was the beginning of a
more stable JAPANESE economy after a long period of recession. Leading
indicators are more encouraging and, with a package of stimulatory measures now
passed, a modest recovery is likely as the year progresses. Although prospects
are brighter, any recovery will be less robust than usual.
The political scene continues to show rapid and unexpected change. Despite
his popularity with the electorate, former Prime Minister Hosokawa found the
pressure of holding his coalition government together too demanding and resigned
in April. His successor is finding the job equally difficult, especially when
the Socialist Party broke away from the coalition.
Despite this political uncertainty, an economic recovery should soon be
under way and our positions in Japan focus on more cyclical stocks. Our bias
also continues to be on smaller companies which are more reasonably valued and
typically outperform as industrial production picks up.
Elsewhere in the Pacific, the picture has been one of strong economic
performance but weak stock markets. Typical has been HONG KONG where the
economy is growing but the stock market
<PAGE>
fell sharply from its highs in January. With its currency linked directly to
the U.S. dollar, the interest rate hikes had a more direct impact on sentiment
in Hong Kong, particularly after the market's phenomenal rise at the end of
1993.
Hong Kong is still considered to be the best "play" on the economic
renaissance in China itself. We remain optimistic about the longer-term outlook
but, over the shorter term, there are signs of overheating in China's economy
and Hong Kong stocks will also remain sensitive to any further increases in U.S.
interest rates.
Turning further south, the stock markets of MALAYSIA and SINGAPORE settled
down after their January falls and were broadly unchanged over the three months
under review. Both economies are showing some of the highest economic growth
rates in the region and are less influenced by events in China itself. In
Malaysia, the authorities introduced a number of measures to drain liquidity
from the system and reduce speculative activity. The economic recovery is well
advanced but GDP growth is still expected to top 8% in 1994 and inflation
remains under control.
In AUSTRALIA, the stock market was surprisingly resilient given the
weakness of the local bond market. Improved commodity prices have helped
sentiment and there are signs the economy has stabilised. We have increased our
positions in Australia and continue to be optimistic about NEW ZEALAND where the
economy continues to strengthen. Economic growth forecasts were upgraded again
during the quarter, and inflation and government finance remain well under
control. In addition, as an exporter of agricultural products, New Zealand is
well placed to benefit from the GATT agreement signed in December 1993.
Turning to Europe, signs of economic recovery have started to appear, with
the UK staying ahead of the Continent. In line with the U.S. experience, the
bond markets have been savaged but, with inflation well under control, we feel
interest rates can fall much further. In GERMANY, signs of the economy
bottoming are now widespread although any recovery will be muted by recent tax
increases. German money supply growth remains very high but wage settlements
have moderated and Mr. Tietmeyer, the new head of the Bundesbank, has continued
a policy of modest but steady reductions in short-term interest rates. Helped
by this encouraging picture and the strength of the deutschemark, the German
market performed well in dollar terms during the quarter.
In FRANCE, the economy continues to reflect the virtues of low inflation,
government finances in reasonable order, and an improving trade position. Signs
of recovery are harder to find than in Germany which is perhaps why the French
stock market has been more subdued. Mr. Balladur's quest for the presidency has
prompted a small shift towards more stimulatory policies and we have added to
cyclical stocks in the portfolio.
In SWITZERLAND and in SCANDINAVIA, the focus has been on attractively
valued companies which will benefit from wider growth internationally as well as
a domestic recovery.
The star of the European scene during the quarter was ITALY where the
success of Silvio Berlusconi's alliance in the recent elections has been greeted
enthusiastically by the stock market. Perhaps it is too optimistic to hope that
the new government can break completely with Italy's bureaucratic and corrupt
past, but the prospect of tax cuts, privatisations and pro-business policies is
clearly encouraging.
In the UK, the economy shows a picture of modest recovery, improving
government finances and inflation down to modest levels. A range of small but
widespread tax increases came into force in April and there is hope that this
package will prevent the economy from racing away without extinguishing the
moderate recovery. Given this background, it is difficult to understand why the
government bond market behaved so badly, but rising yields were quick to
undermine equities. Our weighting in the UK is relatively low, and this market
has been a source of cash to finance ideas in other areas.
Stock markets in Latin America were quick to feel the impact of a rise in
U.S. interest rates. MEXICO weakened first and sentiment worsened with the
assassination of Mr. Colosio -- the preferred successor to President Salinas.
The replacement candidate, Mr. Zedillo, is expected to continue to advocate
Salinas-style policies, but the situation will remain volatile until the August
elections.
In BRAZIL, attention has focused on the imminent introduction of the Unit
of Real Value (URV), which is the latest initiative to stem inflation by pegging
the exchange rate to the U.S. dollar. Politics have affected sentiment here too
with socialist candidate Mr. Lula showing strongly in opinion polls. We remain
confident that
2
<PAGE>
Mr. Cardoso will win the elections in the autumn and be able to continue his
stabilisation plans.
INVESTMENT POLICY & OUTLOOK
For some time now the main thrust of our policy has been to have a little under
half the portfolio in Europe, a low relative weighting in Japan, countered by
significant positions in Southeast Asia. From the beginning of this year, we
have begun a modest retreat from the Southeast Asian markets in order to rebuild
our weighting in Japan. This shift in policy needs careful timing and, after
the steady performance in Tokyo and Southeast Asia's sharp correction, looks
less compelling at the moment. In Europe, we have reduced our UK positions in
favour of Continental Europe and, following sharp declines, we are adding to our
holdings in Latin America.
Given the exceptional performance of international equities last year, the
current pause is not surprising and we remain optimistic about the prospects for
investing overseas. Despite the trend of rising U.S. interest rates, the German
central bank has continued to cut rates and this has been rapidly mirrored in
other European economies. Both Japan and Europe are well behind the U.S. in the
economic cycle and can look forward to recovering economies and stable or
falling interest rates. In Southeast Asia, the stock markets will remain
volatile but the economies will still provide the highest rates of economic
growth in the world and the stocks will continue to play their part in a well -
diversified international portfolio.
World markets may back and fill for a little longer, but the International
Stock Fund remains fully invested, reflecting our confidence that the next major
move will be upward.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
President
May 24, 1994
TWENTY-FIVE LARGEST HOLDINGS
April 30, 1994
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Swire Pacific `A', Hong Kong 1.6%
TMX ADS, Mexico 1.5
Elsevier, Netherlands 1.4
United Engineers, Malaysia 1.4
Wolters Kluwer, Netherlands 1.4
Royal Dutch Petroleum, Netherlands 1.2
SIP, Italy 1.0
Technology Resources Industries, Malaysia 1.0
United Overseas Bank, Singapore 1.0
Generale des Eaux, France 1.0
Sandoz, Switzerland 0.9
Kyocera, Japan 0.9
National Westminster Bank,
United Kingdom 0.9
Roche Holdings, Switzerland 0.8
Wharf Holdings, Hong Kong 0.8
Cable & Wireless, United Kingdom 0.8
Fletcher Challenge, New Zealand 0.8
Sumitomo Electric, Japan 0.7
Caradon, United Kingdom 0.7
Nippon Denso, Japan 0.7
Nestle, Switzerland 0.7
Valeo, France 0.7
Reed International, United Kingdom 0.7
Gehe, Germany 0.7
Resorts World, Malaysia 0.7
- ----------------------------------------------------------
Total 24.0%
==========================================================
</TABLE>
3
<PAGE>
INDUSTRY DIVERSIFICATION
April 30, 1994
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Banking 7.4%
Building Materials and Components 6.3
Merchandising 6.1
Media 6.0
Telecommunications 5.7
Health and Personal Care 5.2
Electrical and Electronics 5.1
Food and Household Products 5.1
Machinery and Engineering 4.9
Multi Industry 4.5
Energy Sources 4.1
Chemicals 4.0
Business and Public Services 3.8
Real Estate 3.5
Mining 3.0
Transport and Storage 2.7
Entertainment/Leisure 2.5
Forestry/Paper Products 2.3
Automobiles 1.7
Financial Services 1.7
Beverage/Tobacco Manufacturing 1.6
Investment Trusts 0.5
Other Industries 5.7
Short-Term Investments 8.2
Other Assets Less Liabilities (1.6)
- -----------------------------------------------------------
Net Assets 100.0%
===========================================================
</TABLE>
SECURITY CLASSIFICATION
April 30, 1994
<TABLE>
<CAPTION>
Cost Market Value
Percent of Net Assets (000) (000)
- ------------------------------------------ ------------- --------------
<S> <C> <C>
Common Stocks, Rights, & Warrants, 92.5% $4,072,259 $4,749,400
Preferred Stocks, 0.8% 28,165 44,507
Bonds, 0.1% 1,022 1,063
Short-Term Investments, 8.2% 420,280 420,280
------------- --------------
Total Investments, 101.6% 4,521,726 5,215,250
Other Assets Less Liabilities, (1.6)% (85,201) (83,685)
- -------------------------------------------------------------------------------
Net Assets, 100.0% $4,436,525 $5,131,565
===============================================================================
</TABLE>
4
<PAGE>
STATEMENT OF NET ASSETS (VALUE IN THOUSANDS)
T. ROWE PRICE INTERNATIONAL STOCK FUND / APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S>
ARGENTINA -- 0.7%
<CAPTION>
Value
----------
<S> <C> <C>
COMMON STOCKS
45,500 shs. Banco de Galicia Buenos Aires ADR (USD)................. $ 1,411
193,620 Buenos Aires Embotelladora ADR (USD).................... 6,752
842,340 Perez `B'............................................... 4,215
411,680 *Sociedad Comercial del Plata............................ 2,225
23,664 *Sociedad Comercial del Plata ADS (USD).................. 1,278
182,700 Telefonica de Argentina ADR (USD)....................... 11,693
279,000 YPF Sociedad Anonima ADR (USD).......................... 6,940
TOTAL ARGENTINA 34,514
AUSTRALIA -- 2.8%
COMMON STOCKS
5,669,000 ANI..................................................... 8,544
2,307,000 Australia & New Zealand Bank Group...................... 7,761
728,982 Broken Hill Property.................................... 8,851
868,000 Commonwealth Bank of Australia.......................... 5,096
2,287,449 Email................................................... 8,104
4,717,000 John Fairfax Holdings................................... 9,231
1,747,357 MIM..................................................... 3,607
2,961,056 Mayne Nickless.......................................... 17,554
1,669,381 National Australia Bank................................. 14,165
1,800,180 News Corporation........................................ 12,446
2,907,400 Nine Network............................................ 11,006
1,356,605 Philip Burns............................................ 3,876
658,600 TNT..................................................... 1,007
4,012,050 Western Mining.......................................... 20,059
3,147,022 Woolworths.............................................. 6,991
138,298
PREFERRED STOCK
4,652,000 *TNT, Cum. Cv., 8.00%.................................... 7,576
TOTAL AUSTRALIA 145,874
AUSTRIA -- 0.1%
COMMON STOCK
60,110 Oesterreische Elektrik Wirtsch.......................... 3,203
PREFERRED STOCK
44,194 Creditanstalt-Bankverein................................ 2,598
TOTAL AUSTRIA 5,801
BELGIUM -- 1.7%
COMMON STOCKS
123,422 shs. AG Finanz............................................... 9,566
102,859 Delhaize Freres......................................... 4,110
39,800 Generale Banque......................................... 10,081
107,660 Kredietbank............................................. 22,042
1,221 Obourg Financiere....................................... 946
55,860 Societe Generale de Belgique............................ 4,403
20,800 Solvay.................................................. 10,099
29,130 UCB..................................................... 19,979
56,400 Union Miniere........................................... 4,281
85,507
CORPORATE BOND
37,597,500 BEL Kredietbank, Cv., 5.75%, 11/30/03....................... 1,063
TOTAL BELGIUM 86,570
BRAZIL -- 0.9%
COMMON STOCKS
287,100 shs. Brazil Fund (USD)....................................... 6,711
156,300 *Cia Energetica de Sao Paulo GDS (USD)................... 1,875
170,440,000 Companhia Siderurgica Nacional.......................... 4,515
363,880 *Telebras ADR (USD)...................................... 12,645
25,746
PREFERRED STOCKS & WARRANTS
8,722,328 Banco Bradesco.......................................... 108
1,827,222 wts. *Brahma, 9/30/96........................................ 83
200,000,000 shs. Paranapanema Mineracao.................................. 3,607
228,000,000 Telebras................................................ 8,227
6,200,000 Usiminas................................................ 6,094
18,119
TOTAL BRAZIL 43,865
CANADA -- 0.3%
COMMON STOCKS
423,710 Alcan Aluminium......................................... 8,971
312,340 MacMillan Bloedel....................................... 4,607
166,860 Royal Bank of Canada.................................... 3,307
TOTAL CANADA 16,885
CHILE -- 0.6%
COMMON STOCKS
443,180 Chile Fund (USD)........................................ 20,386
132,550 Chilectra ADR (USD)..................................... 5,766
67,290 Compania de Telefonos de Chile ADR (USD)................ 6,426
TOTAL CHILE 32,578
</TABLE>
5
<PAGE>
T. ROWE PRICE INTERNATIONAL STOCK FUND / STATEMENT OF NET ASSETS
<TABLE>
<S> <C> <C>
DENMARK -- 0.2%
COMMON STOCKS
98,160 shs. Den Danske Bank......................................... $ 5,413
36,167 Teledanmark............................................. 1,712
112,400 *Unidanmark.............................................. 3,954
TOTAL DENMARK 11,079
FINLAND -- 0.2%
PREFERRED STOCK
144,550 Nokia................................................... 12,257
FRANCE -- 6.2%
COMMON STOCKS & WARRANTS
160,443 Accor................................................... 20,786
326 Burelle................................................. 26
132,030 CMB Packaging........................................... 4,253
26,520 Carrefour............................................... 19,219
47,080 Chargeurs............................................... 12,182
143,618 Cie de St. Gobain....................................... 17,570
114,870 Ecco.................................................... 14,922
111,397 Generale des Eaux....................................... 50,669
19,441 L'Oreal................................................. 4,226
251,338 Lafarge Coppee.......................................... 20,307
92,340 Lapeyre................................................. 5,429
2,675 Legrand................................................. 3,047
166,560 Peugeot................................................. 26,240
76,190 Poliet.................................................. 5,874
31,037 Primagaz................................................ 5,425
5,837 wts. *Primagaz, 6/30/95....................................... 139
56,310 shs. Promodes................................................ 10,794
39,550 Societe Generale de France.............................. 4,442
248,020 Societe Nationale Elf Aquitaine......................... 18,101
296,846 Television Francaise.................................... 24,768
200,000 Total................................................... 11,582
144,500 Valeo................................................... 35,356
TOTAL FRANCE 315,357
GERMANY -- 4.2%
COMMON STOCKS & WARRANTS
11,359 Allianz Holdings........................................ 17,851
3,000 wts. *Allianz Holdings, 3/29/96.............................. 2,278
26,100 shs. Ava Allgemeine Handels - Der Verbr...................... 12,629
72,690 Bayer................................................... 17,245
10,970 Bayerische Motoren Werke................................ 5,989
36,399 Deutsche Bank........................................... 17,196
87,169 Gehe.................................................... 30,781
12,547 *Gehe, new............................................... 4,317
48,590 Hoechst................................................. 10,678
17,030 Kaufhof Holdings........................................ 5,624
97,550 Mannesmann.............................................. 27,775
8,763 shs. *Mannesmann, new......................................... 2,461
12,826 Rhon Klinikum........................................... 8,038
21,963 Schering................................................ 14,688
38,240 Veba.................................................... 11,842
54,037 Volkswagen.............................................. 17,095
38,000 wts. *Volkswagen International Finance, 10/27/98.............. 4,752
211,239
PREFERRED STOCK
1,874 shs. Krones Finance.......................................... 3,218
TOTAL GERMANY 214,457
HONG KONG -- 4.9%
COMMON STOCKS
2,836,000 Citic Pacific........................................... 7,894
113,323 Consolidated Electric Power Asia........................ 169
32,130,000 Great Eagle Holdings.................................... 18,926
8,629,000 Hong Kong Land Holdings................................. 24,241
12,619,400 Hong Kong Telecommunications............................ 24,179
16,897,000 Hopewell Holdings....................................... 15,093
6,232,000 Hutchison Whampoa....................................... 25,615
3,690,983 New World Development................................... 11,324
11,460,500 Swire Pacific `A'....................................... 82,343
11,063,000 Wharf Holdings.......................................... 42,679
TOTAL HONG KONG 252,463
ITALY -- 3.4%
COMMON STOCKS & WARRANTS
3,797 Alleanza Assicurazioni, savings shares.................. 37
783,008 Assicurazioni Generali.................................. 22,773
819,217 Autostrade.............................................. 1,218
5,255,407 Banca Fideuram.......................................... 7,317
406,800 Danieli & Company, savings shares....................... 1,790
406,527 *Imi..................................................... 3,351
891,070 Italcable............................................... 6,383
2,080,512 Italcable, savings shares............................... 12,410
2,178,270 Italgas................................................. 8,304
121,210 Lloyd Adriatico......................................... 1,252
14,850,546 Montedison.............................................. 14,664
5,721,108 wts. *Montedison, 12/31/95.................................... 781
5,721,108 *Montedison, 1/19/97..................................... 1,574
96,610 shs. RAS..................................................... 1,902
516,750 RAS, savings shares..................................... 5,816
500,000 wts. *RAS, 12/31/95........................................... 1,200
688,605 shs. Sasib, savings shares................................... 2,590
15,216,289 SIP..................................................... 45,535
3,046,000 SIP, savings shares..................................... 7,557
</TABLE>
6
<PAGE>
<TABLE>
<S> <C> <C>
5,129,640 shs. Stet.................................................... $ 19,845
2,243,805 Stet, savings shares.................................... 7,353
55,000 wts. *Stet, 9/30/96........................................... 1,403
TOTAL ITALY 175,055
JAPAN -- 20.4%
COMMON STOCKS
319,000 shs. Advantest............................................... 10,784
1,047,000 Alps Electric........................................... 14,569
1,827,000 Amada................................................... 20,051
477,000 Aoyama Trading.......................................... 21,969
1,915,000 Canon................................................... 30,963
1,195,000 Citizen Watch Company................................... 10,715
1,254,000 Dai Nippon Screen Manufacturing......................... 9,032
408,000 Daifuku Company......................................... 4,958
1,756,000 Daiichi Pharmaceutical.................................. 27,015
2,077,000 Daiwa House............................................. 31,140
380,000 Dowa Fire & Marine Insurance............................ 2,495
2,461 East Japan Railway...................................... 11,624
2,956,000 Hitachi................................................. 27,807
2,279,000 Hitachi Zosen........................................... 11,970
718,000 Honda Motor Company..................................... 11,820
1,048,000 Inax.................................................... 11,091
559,000 Ito-Yokado.............................................. 29,306
435,000 Kawada Industries....................................... 4,902
909,000 Kokuyo.................................................. 20,932
3,751,000 Komatsu................................................. 33,375
719,000 Komori.................................................. 19,305
1,604,000 Kuraray................................................. 17,447
718,000 Kyocera................................................. 45,029
1,276,000 Makita Electric Works................................... 25,757
426,000 Marui................................................... 7,013
1,915,000 Matsushita Electric Industries.......................... 31,338
1,119,000 Mitsubishi.............................................. 13,049
5,031,000 Mitsubishi Heavy Industries............................. 33,277
2,795,000 Mitsui Fudosan.......................................... 33,688
960,000 Mitsui Petrochemical Industries......................... 7,667
479,000 Murata Manufacturing.................................... 20,653
1,212,000 NEC..................................................... 13,420
719,000 National House.......................................... 13,105
1,917,000 Nippon Denso............................................ 36,255
858,000 Nippon Hodo............................................. 15,554
7,580,000 Nippon Steel............................................ 25,774
1,039,000 Pioneer Electronic...................................... 26,573
272,000 Sangetsu................................................ 9,915
520,000 Sankyo.................................................. 11,771
2,556,000 Sekisui Chemical........................................ 26,048
1,997,000 Sekisui House........................................... 24,852
142,600 Seven-Eleven Japan...................................... 10,578
2,076,000 shs. Sharp................................................... 33,769
1,199,000 Shinetsu Chemical....................................... 24,556
255,800 Sony.................................................... 14,438
2,697,000 Sumitomo................................................ 26,085
2,715,000 Sumitomo Electric....................................... 38,311
1,000,000 Sumitomo Forestry....................................... 20,382
320,000 TDK..................................................... 14,362
482,000 Taisho Pharmaceutical................................... 9,588
3,071,000 Teijin.................................................. 15,347
1,915,000 Tokio Marine & Fire Insurance........................... 24,395
497,000 Yurtec.................................................. 12,321
TOTAL JAPAN 1,048,140
MALAYSIA -- 6.3%
COMMON STOCKS, RIGHTS & WARRANTS
15,158,000 Affin Holdings.......................................... 24,782
2,396,000 Aokam Perdana........................................... 23,253
11,810,000 Berjaya Sports Toto..................................... 21,160
5,104,000 Commerce Asset Holdings................................. 18,099
1,510,666 wts. *Commerce Asset Holdings, 6/27/98........................ 2,019
6,339,000 shs. Development & Commercial Bank........................... 13,369
8,056,000 Magnum.................................................. 18,945
20,763,000 MBF Capital............................................. 21,081
16,037,000 Renong.................................................. 21,790
6,229,000 Resorts World........................................... 34,877
12,011,000 Technology Resources Industries......................... 51,559
16,257,000 United Engineers........................................ 70,999
8,394,000 rts. *United Engineers........................................ 172
TOTAL MALAYSIA 322,105
MEXICO -- 4.6%
COMMON STOCKS
348,315 shs. Cemex `A'............................................... 7,541
348,790 Cemex `B'............................................... 7,615
12,455,820 Cifra `C'............................................... 33,241
3,372,670 Cifra ADR (USD)......................................... 9,646
1,166,780 Desc `B'................................................ 7,410
924,129 Fomentos Economico Mexicano `B'......................... 4,447
1,011,902 Grupo Embotellador de Mexico............................ 13,997
3,866,489 Grupo Financiero Bancomer `C'........................... 5,006
412,879 Grupo Financiero Bancomer ADS (USD)..................... 11,251
3,496,818 *Grupo Industrial Maseca................................. 6,043
310,683 *Grupo Televisa GDS (USD)................................ 16,311
263,639 Panamerican Beverages ADR (USD)......................... 9,128
</TABLE>
7
<PAGE>
T. ROWE PRICE INTERNATIONAL STOCK FUND / STATEMENT OF NET ASSETS
<TABLE>
<S> <C> <C>
MEXICO (cont'd)
1,307,128 shs. TMX ADS (USD).......................................... $ 77,120
2,179,573 Tolmex `B'.............................................. 26,521
TOTAL MEXICO 235,277
NETHERLANDS -- 6.7%
COMMON STOCKS
370,820 ABN Amro................................................ 12,258
102,530 AMEV.................................................... 3,984
306,382 Ahold................................................... 7,810
187,826 Akzo.................................................... 22,548
586,879 CSM..................................................... 20,472
809,371 Elsevier................................................ 72,624
548,640 International Nederlanden Groep......................... 22,848
79,008 Nutricia................................................ 3,413
588,391 Polygram................................................ 24,219
549,500 Royal Dutch Petroleum................................... 60,246
203,005 Unilever................................................ 22,562
1,206,869 Wolters Kluwer.......................................... 70,272
343,256
PREFERRED STOCK
70,540 International Nederlanden Groep......................... 306
TOTAL NETHERLANDS 343,562
NEW ZEALAND -- 2.4%
COMMON STOCKS & RIGHTS
7,970,100 +Air New Zealand `B'..................................... 22,548
326,260 Brierley Investments.................................... 247
9,646,445 Carter Holt Harvey...................................... 20,551
1,878,625 Fernz................................................... 8,514
210,052 rts. *Fernz................................................... 523
15,771,100 shs. Fletcher Challenge...................................... 30,685
8,072,600 Fletcher Challenge, Forests Division.................... 11,652
1,035,375 Independent Newspapers.................................. 3,377
3,833,800 Telecom Corporation of New Zealand...................... 11,134
2,036,000 *Trust Bank.............................................. 2,468
2,430,650 Wilson & Horton......................................... 12,139
TOTAL NEW ZEALAND 123,838
NORWAY -- 1.1%
COMMON STOCKS
198,750 Bergesen `A'............................................ 4,390
176,590 Kvaerner Industier `A'.................................. 8,880
697,840 Norsk Hydro............................................. 23,557
578,820 Orkla `A'............................................... 18,896
219,720 Saga Petroleum `B'...................................... 2,411
TOTAL NORWAY 58,134
PORTUGAL -- 0.3%
COMMON STOCKS
158,834 shs. Jeronimo Martins........................................ 12,863
25,000 Portugal Fund IDR (USD)................................. 147
TOTAL PORTUGAL 13,010
SINGAPORE -- 2.3%
COMMON STOCKS & WARRANTS
1,193,000 DBS Land................................................ 3,667
4,278,000 Far East Levingston Shipbuilding........................ 18,020
150,000 Jurong Shipyard......................................... 1,437
2,713,000 Keppel.................................................. 19,890
697,500 Keppel, loan stock...................................... 767
1,348,500 wts. *Keppel, 6/30/97......................................... 4,510
1,356,000 shs. Sembawang Shipyard...................................... 10,900
609,200 Singapore Press......................................... 9,990
5,534,875 United Overseas Bank.................................... 48,052
657,515 wts. *United Overseas Bank, 6/17/97........................... 2,685
TOTAL SINGAPORE 119,918
SOUTH KOREA -- 0.7%
COMMON STOCKS
82,334 shs. *Hanil Securities........................................ 1,448
134,000 Korea Electric Power.................................... 4,645
118,600 Pohang Iron & Steel..................................... 11,949
258,500 *Samsung Electronics GDS (USD)........................... 16,738
TOTAL SOUTH KOREA 34,780
SPAIN -- 1.9%
COMMON STOCKS
50,100 Argentaria Corporation Bancaria de Espana............... 2,169
40,782 Banco Popular Espanol................................... 4,725
176,850 Banco Santander......................................... 7,747
656,020 Centros Commerciales Pryca.............................. 9,368
482,890 ENDESA.................................................. 23,868
104,785 FOSCA................................................... 11,591
135,067 Gas Natural............................................. 11,183
505,660 Repsol.................................................. 16,799
38,000 Repsol ADR (USD)........................................ 1,264
623,639 Telefonica de Espana.................................... 8,444
TOTAL SPAIN 97,158
SWEDEN -- 1.3%
COMMON STOCKS
64,000 Asea `A'................................................ 5,314
1,258,950 Astra `B'............................................... 25,147
136,320 Atlas Copco `B'......................................... 9,432
166,850 Electrolux `B'.......................................... 8,844
</TABLE>
8
<PAGE>
<TABLE>
<S> <C> <C>
173,520 shs. Esselte `B'............................................. $ 2,718
143,160 Hennes & Mauritz `B'.................................... 7,065
206,170 Sandvik `B'............................................. 3,311
91,820 Scribona `B'............................................ 599
120,160 Stora Kopparberg `B'.................................... 6,463
TOTAL SWEDEN 68,893
SWITZERLAND -- 4.3%
COMMON STOCKS & WARRANTS
36,235 BBC Brown Boveri........................................ 33,151
18,490 CS Holdings............................................. 7,921
15,992 Ciba Geigy.............................................. 9,493
4,750 Landis & Gyr............................................ 2,981
9,750 wts. *Landis & Gyr, 2/15/95................................... 23
43,365 shs. Nestle.................................................. 36,076
9,111 Roche Holdings.......................................... 43,423
18,194 Sandoz.................................................. 47,872
7,083 Sulzer Winterthur....................................... 5,018
44,800 Swiss Bank.............................................. 12,455
26,409 Union Bank of Switzerland............................... 22,026
TOTAL SWITZERLAND 220,439
THAILAND -- 1.6%
COMMON STOCKS
399,000 Advanced Information Service............................ 14,832
1,757,000 Bangkok Bank............................................ 13,258
630,000 Bangkok Land............................................ 2,252
2,237,000 Bank of Ayudhya......................................... 6,707
158,000 Land & House............................................ 3,602
231,000 Loxley.................................................. 4,568
300,600 Siam Cement............................................. 13,084
882,710 Siam Commercial Bank.................................... 5,504
850,000 Siam Pulp & Paper....................................... 2,363
1,643,220 Thai Farmers Bank....................................... 8,484
221,000 United Communications Industry.......................... 5,143
TOTAL THAILAND 79,797
UNITED KINGDOM -- 13.3%
COMMON STOCKS
3,502,700 Abbey National.......................................... 23,114
1,966,980 Argos................................................... 10,866
3,517,920 Argyll Group............................................ 12,193
11,078,000 Asda Group.............................................. 9,222
549,590 BAA..................................................... 8,135
2,752,040 British Gas............................................. 11,913
1,673,500 British Petroleum....................................... 9,802
30,000 CALA.................................................... 59
6,226,760 Cable & Wireless........................................ 42,597
2,364,064 Cadbury Schweppes....................................... 17,174
6,892,911 Caradon................................................. 37,035
3,578,410 shs. Clyde Petroleum......................................... 2,275
2,321,210 Coats Viyella........................................... 8,396
1,594,560 David S. Smith.......................................... 13,274
2,343,710 East Midlands Electricity............................... 19,545
1,034,210 Eastern Electricity..................................... 9,079
1,345,000 First National Finance.................................. 1,506
2,551,710 Glaxo Holdings.......................................... 22,284
4,551,260 Grand Metropolitan...................................... 32,513
3,754,000 Guinness................................................ 27,158
642,000 Heath................................................... 3,721
1,034,875 Heywood Williams Group.................................. 6,328
1,828,000 Hillsdown Holdings...................................... 4,679
2,112,000 John Laing.............................................. 10,964
3,067,098 Kingfisher.............................................. 26,785
3,365,940 Ladbroke Group.......................................... 9,425
2,270,640 London Electricity...................................... 19,382
6,430,780 National Westminster Bank............................... 43,896
2,097,000 *Polly Peck International................................ 95
1,718,900 RTZ..................................................... 21,879
3,329,825 Rank Organisation....................................... 21,683
2,746,570 Reed International...................................... 35,105
1,716,750 Rolls Royce............................................. 5,249
2,390,000 Sears................................................... 4,341
2,697,780 Shell Transport & Trading............................... 29,521
5,433,550 Smithkline Beecham, equity units........................ 29,030
796,630 South Western Electricity............................... 6,999
817,666 Spring Ram.............................................. 749
4,199,000 T & N................................................... 15,475
2,880,395 Tesco................................................... 9,111
8,903,930 Tomkins................................................. 34,364
2,715,430 United Newspapers....................................... 25,727
682,648
PREFERRED STOCK
233,428 First National Finance, Cum. Cv., 7.00%................. 516
TOTAL UNITED KINGDOM 683,164
SHORT-TERM INVESTMENTS -- 8.2%
CERTIFICATE OF DEPOSIT
$12,000,000 Commerzbank, 3.56%, 8/29/94............................. 12,008
COMMERCIAL PAPER
10,000,000 Abbey National, 3.42%, 5/9/94........................... 9,996
20,000,000 Abbey National North America, 3.22%, 7/21/94............ 19,676
20,000,000 Asset Securitization Cooperative, 3.95%, 6/15/94........ 19,877
8,013,000 BMW US Capital, 3.67%, 5/10/94.......................... 7,987
10,000,000 Bank of New York, 3.60%, 6/30/94........................ 10,012
</TABLE>
9
<PAGE>
T. ROWE PRICE INTERNATIONAL STOCK FUND / STATEMENT OF NET ASSETS
<TABLE>
<S> <C> <C>
SHORT-TERM INVESTMENTS (cont'd)
$ 6,000,000 Ciba-Geigy, 3.12%, 5/13/94.............................. $ 5,938
10,000,000 Export Finance & Insurance, 3.21%, 7/1/94............... 9,856
35,785,000 Federal Home Loan Bank, 3.55%, 5/2/94................... 35,774
72,751,250 General Electric Capital, 3.65 - 3.95%, 5/2/94 -
6/20/94............................................... 72,584
4,000 Harvard University, 3.55%, 5/2/94....................... 4
20,000,000 KFW International Finance, 3.33 - 3.36%, 7/8/94 -
7/27/94............................................... 19,666
10,000,000 New Center Asset Trust, 3.65%, 5/12/94.................. 9,970
5,000,000 New South Wales Treasury, 3.55%, 5/9/94................. 4,977
14,100,000 Preferred Receivables Funding, 3.65%, 5/16/94........... 14,056
19,000,000 Province of Quebec, 3.22 - 3.90%, 7/6/94 - 7/18/94...... 18,728
1,000,000 Repsol International, 3.90%, 6/24/94.................... 989
20,000,000 SBNSW, 3.65%, 5/25/94................................... 19,913
15,000,000 Societe Generale, 3.38%, 5/10/94........................ 15,001
13,405,000 Societe Generale Canada, 3.17 - 3.95%, 5/11/94 -
7/11/94............................................... 13,263
5,000,000 US Bancorp, 3.82%, 6/16/94.............................. 4,963
9,000,000 Western Australia Treasury Corporation, 3.22%,
7/27/94............................................... 8,854
5,000,000 Wool International Discount, 3.65%, 5/25/94............. 4,979
17,000,000 Yale University, 3.80%, 6/6/94.......................... 16,892
343,955
OTHER
21,000,000 Commercial Bank of Illinois, Floating Rate Medium-Term
Note, 4.09%, 3/14/95.................................. 21,000
10,000,000 Corporate Asset Funding, Floating Rate Medium-Term
Note, 3.71%, 12/12/94................................. 9,998
$13,295,000 Morgan Stanley Group, Floating Rate Medium-Term Note,
4.00%, 7/29/94........................................ 13,319
20,000,000 SBNSW, Floating Rate Medium-Term Note, 3.53%, 1/3/95.... 20,000
64,317
TOTAL SHORT-TERM INVESTMENTS 420,280
====================================================================================================
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES -- 101.6% (Cost--$4,521,726) 5,215,250
Other Assets Less Liabilities -- (1.6)% (83,685)
NET ASSETS CONSISTING OF:
Accumulated net investment income -- net of distributions............ $ 9,769
Accumulated realized gains/losses -- net of distributions............ 152,673
Unrealized appreciation of investments............................... 694,969
Paid-in-capital applicable to 421,128,746 shares of
$0.01 par value capital stock outstanding; 1,000,000,000
shares of the Corporation authorized............................... 4,274,154
----------
NET ASSETS -- 100.0% $5,131,565
==========
NET ASSET VALUE PER SHARE $12.19
======
====================================================================================================
</TABLE>
* Non-Income Producing
+ Affiliated company
(BEL) - Belgian franc denominated
(DEM) - German deutschemark denominated
(FRF) - French franc denominated
(GBP) - British Sterling Denominated
(JPY) - Japanese yen denominated
(NLG) - Dutch guilder denominated
(USD) - U.S. dollar denominated
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
STATEMENT OF OPERATIONS
T. Rowe Price International Stock Fund / Six Months Ended April 30, 1994
(Unaudited)
<TABLE>
<CAPTION>
Amounts in Thousands
--------------------
<S> <C> <C>
INVESTMENT INCOME
Income
Dividends (net of foreign taxes of $4,190)......................... $ 29,205
Interest........................................................... 6,965
--------
Total income....................................................... $ 36,170
Expenses
Investment management fees......................................... 15,593
Shareholder servicing fees & expenses.............................. 4,091
Custodian and accounting fees & expenses........................... 1,507
Registration fees & expenses....................................... 328
Prospectus & shareholder reports................................... 217
Directors' fees & expenses......................................... 23
Legal & auditing fees.............................................. 22
Proxy & annual meeting expenses.................................... 16
Miscellaneous expenses............................................. 28
--------
Total expenses..................................................... 21,825
--------
Net investment income................................................ 14,345
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain
Securities......................................................... 154,850
Foreign currency transactions...................................... 3,750
--------
Net realized gain.................................................... 158,600
Change in unrealized appreciation or depreciation
Securities......................................................... 73,017
Other assets and liabilities denominated in foreign currencies..... (4,498)
--------
Change in unrealized appreciation or depreciation.................... 68,519
--------
Net gain on investments.............................................. 227,119
--------
INCREASE IN NET ASSETS FROM OPERATIONS............................... $241,464
========
==============================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
T. Rowe Price International Stock Fund (Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Ten Months Ended Year Ended
April 30, 1994 Oct. 31, 1993* Dec. 31, 1992
---------------- ---------------- -------------
Amounts in Thousands
------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income......................................................... $ 14,345 $ 32,527 $ 26,428
Net realized gain on investments.............................................. 158,600 78,593 26,983
Change in unrealized appreciation or depreciation of investments.............. 68,519 632,374 (125,939)
---------- ---------- ----------
Increase (decrease) in net assets from operations............................. 241,464 743,494 (72,528)
---------- ---------- ----------
Distributions to shareholders
Net investment income......................................................... (30,603) -- (33,997)
Net realized gain on investments.............................................. (68,008) -- (34,010)
---------- ---------- ----------
Decrease in net assets from distributions to shareholders..................... (98,611) -- (68,007)
---------- ---------- ----------
Capital share transactions
Sold 134,321, 138,616 and 97,917 shares....................................... 1,631,413 1,439,918 916,511
Distributions reinvested of 7,631, 0 and 6,852 shares......................... 90,880 -- 60,907
Redeemed 39,821, 38,992 and 40,072 shares..................................... (479,636) (386,988) (370,046)
---------- ---------- ----------
Increase in net assets from capital share transactions........................ 1,242,657 1,052,930 607,372
---------- ---------- ----------
Net equalization................................................................ -- -- 6,485
---------- ---------- ----------
Total increase.................................................................. 1,385,510 1,796,424 473,322
NET ASSETS
Beginning of period........................................................... 3,746,055 1,949,631 1,476,309
---------- ---------- ----------
End of period................................................................. $5,131,565 $3,746,055 $1,949,631
========== ========== ==========
==================================================================================================================================
</TABLE>
*The Fund's fiscal year-end was changed to October 31.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
T. Rowe Price International Stock Fund / April 30, 1994 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the Corporation) is registered under
the Investment Company Act of 1940. The International Stock Fund (the Fund), a
diversified, open-end management investment company, is one of the portfolios
established by the Corporation.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange (including NASDAQ) are valued at the last quoted sales price at the
time the valuations are made. A security which is listed or traded on more than
one exchange is valued at the quotation on the exchange determined to be the
primary market for such security. Other equity securities and those listed
securities that are not traded on a particular day are valued at a price within
the limits of the latest bid and asked prices deemed by the Board of Directors,
or by persons delegated by the Board, best to reflect fair value.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service. Short-
term debt securities are valued at their cost which, when combined with accrued
interest, approximates fair value.
For purposes of determining the Fund's net asset value per share, all
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at the mean of the bid and offer prices of such currencies
against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
Fund, as authorized by the Board of Directors.
B) Affiliated Companies - Investments in companies 5% or more of whose
outstanding voting securities are held by the Fund are defined as "Affiliated
Companies" in Section 2(a)(3) of the Investment Company Act of 1940.
C) Currency translation - Foreign currency amounts are translated into U.S.
dollars at prevailing exchange rates as follows: assets and liabilities at the
rate of exchange at the end of the respective period, purchases and sales of
securities and income and expenses at the rate of exchange prevailing on the
dates of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains or losses is reflected as a component of
such gains or losses.
D) Other - Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on an identified cost basis. Dividend income and distributions to
shareholders are recorded by the Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
Effective January 1, 1993, the Fund discontinued its practice of equalization.
NOTE 2 - FINANCIAL INSTRUMENTS
As a part of its investment program, the Fund engages in the following
activities, the nature and risk of which are set forth more fully in the Fund's
Prospectus and Statement of Additional Information.
A) Emerging Markets - The Fund has investments in securities of companies
located in emerging markets. Future economic or political developments could
adversely affect the liquidity or value, or both, of such securities.
B) Forward Currency Exchange Contracts - At April 30, 1994, the Fund was a
party to various forward currency exchange contracts under which it is obligated
to exchange currencies at specified future dates. Risks arise from the possible
inability of counterparties to meet the terms of their contracts and from
movements in currency values. Outstanding contracts at April 30, 1994, are as
follows:
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONT'D)
<TABLE>
<CAPTION>
Unrealized
Contract to Apprec.
Value ------------------------ (Deprec.)
Date Receive Deliver in USD Counterparty
- ----- -------- --------- --------- ------------
Amounts in Thousands
-------------------------------
<S> <C> <C> <C> <C> <C>
5/94 JPY 8,854,981 DEM 141,975 1,465 Chase Manhattan Bank
5/94 JPY 4,419,842 FRF 246,368 89 Chase Manhattan Bank
5/94 JPY 8,429,027 NLG 151,465 1,544 Chase Manhattan Bank
6/94 USD 55,876 GBP 37,980 (1,533) Chase Manhattan Bank
</TABLE>
Net unrealized appreciation of $1,565,000 on these contracts at April 30, 1994,
is included in the accompanying financial statements, of which $3,098,000
relates to appreciated contracts and $1,533,000 to depreciated contracts.
C) Securities Lending - To earn additional income, the Fund lends its
securities to approved brokers. At April 30, 1994, the market value of
securities on loan was $46,434,000, for which the Fund has received collateral
of $48,877,000, consisting of cash and U.S. Treasury securities. Although the
risk is mitigated by the collateral, the Fund could experience a delay in
recovering its securities and possibly experience a capital loss if the borrower
fails to return them.
D) Other - Purchases and sales of portfolio securities, other than short-term
and U.S. Government securities, aggregated $1,621,200,000 and $509,361,000.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the Fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income.
At April 30, 1994, the aggregate cost of investments for federal income tax
and financial reporting purposes was $4,521,726,000 and net unrealized
appreciation aggregated $693,524,000, of which $774,534,000 related to
appreciated investments and $81,010,000 to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The Fund is managed by Rowe Price-Fleming International, Inc. (Price-Fleming)
which is owned by T. Rowe Price Associates, Inc. (Price Associates), Robert
Fleming Holdings Limited, and Jardine Fleming Holdings Limited under a joint
venture agreement.
The investment management agreement between the Fund and Price-Fleming (the
Manager) provides for an annual investment management fee, computed daily and
paid monthly, consisting of an Individual Fund Fee equal to 0.35% of average
daily net assets and a Group Fee. The Group Fee is based on the combined assets
of certain mutual funds sponsored by the Manager or Price Associates (the
Group). The Group Fee rate ranges from 0.48% for the first $1 billion of assets
to 0.31% for assets in excess of $34 billion. The effective annual Group Fee
rate at April 30, 1994, and for the six months then ended was 0.34%. The Fund
pays a pro rata portion of the Group Fee based on the ratio of the Fund's net
assets to those of the Group.
During the six months ended April 30, 1994, the Fund, in the ordinary
course of business, paid commissions of $915,000 to, and placed security
purchase and sale orders aggregating $212,244,000 with, certain affiliates of
the Manager in connection with the execution of various portfolio transactions
at the direction of Price-Fleming.
T. Rowe Price Services, Inc. (TRPS) and Retirement Plan Services, Inc.
(RPS) are wholly owned subsidiaries of Price Associates. TRPS provides transfer
and dividend disbursing agent functions and shareholder services for all
accounts. RPS provides subaccounting and recordkeeping services for certain
retirement accounts invested in the Fund. Price Associates, under a separate
agreement, calculates the daily share price and maintains the financial records
of the Fund. The Fund is one of several T. Rowe Price mutual funds (the
Underlying Funds) in which the T. Rowe Price Spectrum Growth Fund (Spectrum)
invests. In accordance with an Agreement between
14
<PAGE>
Spectrum, the Underlying Funds, Price Associates and TRPS, expenses from the
operation of Spectrum are borne by the Underlying Funds based on each Underlying
Fund's proportionate share of assets owned by Spectrum. For the six months
ended April 30, 1994, the Fund incurred fees totalling approximately $3,465,000
for these services provided by related parties. At April 30, 1994, these
investment management and service fees payable were $3,434,000.
FINANCIAL HIGHLIGHTS
T. Rowe Price International Stock Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
---------------------------------------------------------------------------------------
Six Months Ten Months Year ended December 31,
Ended Ended -------------------------------------------------------
April 30, October 31,
1994 1993* 1992 1991 1990 1989
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....... $11.74 $ 8.89 $9.54 $8.81 $10.24 $ 8.97
------ ------ ----- ----- ------ ------
Investment Activities
Net investment income................... 0.02 0.10 0.14 0.15 0.22 0.16
Net realized and unrealized gain
(loss)................................. 0.72 2.75 (0.47) 1.22 (1.13) 1.94
------ ------ ----- ----- ------ ------
Total from Investment Activities........... 0.74 2.85 (0.33) 1.37 (0.91) 2.10
------ ------ ----- ----- ------ ------
Distributions
Net investment income................... (0.09) -- (0.16) (0.15) (0.16) (0.16)
Net realized gain....................... (0.20) -- (0.16) (0.49) (0.36) (0.67)
------ ------ ----- ----- ------ ------
Total Distributions........................ (0.29) -- (0.32) (0.64) (0.52) (0.83)
------ ------ ----- ----- ------ ------
NET ASSET VALUE, END OF PERIOD............. $12.19 $11.74 $8.89 $9.54 $ 8.81 $10.24
====== ====== ===== ===== ====== ======
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Total Return............................... 6.4% 32.1% (3.5)% 15.9% (8.9)% 23.7%
Ratio of Expenses to Average
Net Assets.............................. 0.97%+ 1.01%+ 1.05% 1.10% 1.09% 1.10%
Ratio of Net Investment Income to
Average Net Assets........................ 0.64%+ 1.52%+ 1.49% 1.51% 2.16% 1.63%
Portfolio Turnover Rate.................... 24.5%+ 29.8%+ 37.8% 45.0% 47.1% 47.8%
Net Assets, End of Period
(in thousands).......................... $5,131,565 $3,746,055 $1,949,631 $1,476,309 $1,030,848 $970,214
Number of Shareholder Accounts,
End of Period........................... 244,000 189,000 149,000 122,000 101,000 81,000
====================================================================================================================================
</TABLE>
* The Fund's fiscal year-end was changed to October 31.
+ Annualized.
15
<PAGE>
SemiAnnual Report
- --------------------------------------------------------------------------
For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T.Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution
only to shareholders and to
others who have received a copy of
the prospectus of the T.Rowe Price
International Stock Fund.(R)
T.Rowe Price
Invest With Confidence(R)
ISF
T.Rowe Price
- ------------
International Stock
Fund
April 30, 1994
[ART APPEARS HERE]
