<PAGE>
- --------------------------------------------------------------------------------
Fellow Shareholders
- --------------------------------------------------------------------------------
European stock markets picked up in the fund's second quarter ended April 30.
When combined with the appreciation of most European currencies against the
dollar, the advance more than reversed the negative returns of the first
quarter for U.S. investors. Your fund's strong performance was virtually in
line with the unmanaged Morgan Stanley Capital International Europe Index for
three months and lagged the benchmark by a small margin for the six-month
period.
- --------------------------------------------------------------------------------
Performance Comparison
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Periods Ended 4/30/95
3 Months 6 Months
---------------------
<S> <C> <C>
European Stock Fund 10.5% 5.4%
MSCI European Index 10.6 6.2
- --------------------------------------------------------------------------------
</TABLE>
MARKET REVIEW
Most European economies entered their second year of growth. With companies
reporting good earnings gains and bond markets showing much more stability,
stock valuations continued to improve, thereby allowing markets to register
positive returns. Encouraging signs of further growth in Europe and indications
of a slowdown in the U.S. also helped European currencies appreciate against the
dollar.
The U.K. economy was the exception to the trend in that signs pointed to a
slowing of growth to a more sustainable rate. Over the last few years the Bank
of England has gained some ground in its efforts to implement a monetary policy
independent of politics. As a consequence, we have already seen three increases
in short-term rates to counter inflationary pressures before they become evident
in the economy. The rate increases had little effect on the stock market, which
performed well. Since the pound weakened slightly against the dollar during the
past six months (despite a small rise during the quarter), U.S. investors did
not receive an extra lift from currency translation. We have maintained our
weighting in the U.K., adding to our existing holding in publisher REED
INTERNATIONAL during the quarter and reducing several stocks that had risen
strongly, including paper and packaging company DAVID S. SMITH.
- --------------------------------------------------------------------------------
Market Performance
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3 Months Ended 4/30/95
-----------------------------------
Local Currency
Local vs. U.S. In U.S.
Currency Dollar Dollars
-----------------------------------
<S> <C> <C> <C>
Austria -3.7% 9.2% 5.1%
Belgium 6.4 9.7 16.7
Denmark -2.6 10.3 7.4
France 8.9 7.1 16.6
Germany 1.1 9.6 10.8
Italy -0.6 -4.7 -5.3
Netherlands 2.0 9.7 11.9
Norway -3.6 6.8 3.0
Spain 1.7 7.1 8.9
Sweden 6.4 2.7 9.2
Switzerland 3.0 11.7 15.1
United Kingdom 8.3 1.4 9.8
- --------------------------------------------------------------------------------
</TABLE>
Source: Wood MacKenzie "Quant" from MSCI indices.
Other major markets led performance within Europe during the fund's second
quarter. After a poor showing in the previous 12 months, the FRENCH stock market
revived. With more expansionary policies expected now that the election is over,
we continued to increase our exposure to consumer stocks in France by adding to
luxury goods manufacturer LVMH and the retailer CARREFOUR . In both the
NETHERLANDS and SWITZERLAND the combination of local market performance and
strong currencies produced excellent returns for U.S. investors. ROYAL DUTCH was
buoyed by higher petrochemical prices, and the insurer FORTIS AMEV
<PAGE>
recovered impressively from depressed levels after reporting good earnings.
In GERMANY, the currency's strength prompted cuts in interest rates despite
the worse-than-expected wage settlement. Although tax increases have restrained
consumer confidence, we believe high wages, the stronger deutschemark, and lower
interest rates may shift the economy's momentum from exports toward the consumer
sector. We maintained our low weighting in German stocks in view of their high
valuations. However, the earnings recovery under way in Germany as in other
European countries may bring valuations into more reasonable territory, and we
will be watching for appealing investment opportunities.
- --------------------------------------------------------------------------------
GEOGRAPHICAL DIVERSIFICATION
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Pie chart European Stock Fund report (Apr. 30, 1995) Entitled "Geographical
Diversification": Shows United Kingdom 28%; Netherlands 16%; France 13%; Germany
8%; Switzerland 7%; Sweden 5%; and Other and Reserves 23%. Based on net assets
as of April 30, 1995.
The Scandinavian markets were relatively dull during the quarter. SWEDISH
stocks performed best in local currency terms, but Sweden's currency continued
to be held back by the country's large budget deficit. Exporters are still
leading the sharp recovery in profitability, and we took advantage of a setback
in the market to increase exposure to the export area. We continue to focus on
well-managed companies that benefit from a strong competitive position, such as
capital goods manufacturer ATLAS COPCO and appliance manufacturer ELECTROLUX.
The markets in NORWAY and DENMARK declined as revenues of many of the larger
companies were hurt by the weak dollar. However, the dollar's plunge versus
these currencies resulted in gains for U.S. investors.
The smaller markets of Latin Europe, ITALY and SPAIN, trailed the European
average during the quarter. An unstable political environment and poor
government finances hindered Italian stocks. Attempts to address fiscal problems
have been limited, and, as a result, high interest rates added to the country's
continuing woes. This has been reflected in both the stock market and a very
weak currency. In Spain, a return to economic growth exposed structural
weaknesses in the economy. A potential change in government in 1996 may pave the
way for helpful reforms, but until then the investment landscape looks
unexciting. However, the stock market looks cheap, and we have maintained a
neutral weighting by switching out of TELEFONICA DE ESPANA, the telephone
utility, and into oil and gas company REPSOL.
INVESTMENT OUTLOOK
Our exposure to small companies has not helped the fund, but there are signs
that these stocks are beginning to gain momentum after underperforming for
the past 12 months. We remain committed to this area and think that over the
coming year small-cap stocks will add to your fund's returns.
A stable interest rate environment combined with attractive stock
valuations and strong growth in company earnings should support continued
positive returns. With economic growth expected to extend into 1997, the outlook
for European stocks remains good.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
President
May 18, 1995
2
<PAGE>
- --------------------------------------------------------------------------------
Average Annual Compound Total Returns
- --------------------------------------------------------------------------------
Periods Ended April 30, 1995
<TABLE>
<CAPTION>
Since Inception
1 Year 5 Years 2/28/90
-------- --------- ---------
<S> <C> <C>
9.1% 7.2% 6.9%
</TABLE>
- --------------------------------------------------------------------------------
Note: For the calendar quarter ended 3/31/95, the fund's returns for the
above periods were 7.8%, 5.8%, and 6.2%, respectively.
Income return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
- --------------------------------------------------------------------------------
Industry Diversification
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Consumer Goods 41.9%
- --------------------------------------------------------------------------------
Financial/Insurance 13.8
- --------------------------------------------------------------------------------
Utilities 9.6
- --------------------------------------------------------------------------------
Capital Goods 9.3
- --------------------------------------------------------------------------------
Energy 8.9
- --------------------------------------------------------------------------------
Basic Industry 8.6
- --------------------------------------------------------------------------------
Transport/Storage 0.8
- --------------------------------------------------------------------------------
Reserves 7.1
- --------------------------------------------------------------------------------
Total Net Assets 100.0%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Security Classification
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent Market
of Net Cost Value
Assets (000) (000)
------- ------ ------
<S> <C> <C> <C>
Common Stocks,
Rights and Warrants 91.2% $338,417 $397,377
- --------------------------------------------------------------------------------
Preferred Stocks 1.6 5,861 6,755
- --------------------------------------------------------------------------------
Bonds 0.1 444 543
- --------------------------------------------------------------------------------
Short-Term
Investments 5.7 24,930 24,930
----- -------- --------
Total Investments 98.6 369,652 429,605
- --------------------------------------------------------------------------------
Other Assets Less
Liabilities 1.4 5,837 5,970
- --------------------------------------------------------------------------------
Total Net Assets 100.0% $375,489 $435,575
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Twenty-Five Largest Holdings
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Wolters Kluwer, Netherlands 3.4%
- --------------------------------------------------------------------------------
Elsevier, Netherlands 3.2
- --------------------------------------------------------------------------------
Royal Dutch Petroleum, Netherlands 2.5
- --------------------------------------------------------------------------------
National Westminster Bank, United Kingdom 2.1
- --------------------------------------------------------------------------------
Eaux Cie Generale, France 1.8
- --------------------------------------------------------------------------------
Reed International, United Kingdom 1.8
- --------------------------------------------------------------------------------
SmithKline Beecham, United Kingdom 1.6
- --------------------------------------------------------------------------------
Telecom Italia, Italy 1.5
- --------------------------------------------------------------------------------
BBC Brown Boveri & Cie, Switzerland 1.5
- --------------------------------------------------------------------------------
Polygram, Netherlands 1.4
- --------------------------------------------------------------------------------
Roche Holdings, Switzerland 1.4
- --------------------------------------------------------------------------------
Nestle, Switzerland 1.3
- --------------------------------------------------------------------------------
Astra 'B', Sweden 1.2
- --------------------------------------------------------------------------------
Rank Organisation, United Kingdom 1.2
- --------------------------------------------------------------------------------
Tomkins, United Kingdom 1.2
- --------------------------------------------------------------------------------
LVMH, France 1.1
- --------------------------------------------------------------------------------
Carrefour, France 1.1
- --------------------------------------------------------------------------------
Valeo, France 1.1
- --------------------------------------------------------------------------------
Shell Transport & Trading, United Kingdom 1.1
- --------------------------------------------------------------------------------
Guinness, United Kingdom 1.1
- --------------------------------------------------------------------------------
Cie de St. Gobain, France 1.0
- --------------------------------------------------------------------------------
Glaxo, United Kingdom 1.0
- --------------------------------------------------------------------------------
CSM, Netherlands 1.0
- --------------------------------------------------------------------------------
Internationale Nederlanden
Groep, Netherlands 1.0
- --------------------------------------------------------------------------------
Unilever, Netherlands 1.0
- --------------------------------------------------------------------------------
Total 37.6%
- --------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
- --------------------------------------------------------------------------------
Statement of Net Assets
T. Rowe Price European Stock Fund / April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
(value in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
AUSTRIA -- 0.1%
- --------------------------------------------------------------------------------
Value
--------
PREFERRED STOCKS
2,050 shs. Creditanstalt - Bankverein.................. $ 118
2,600 Maculan..................................... 107
TOTAL AUSTRIA 225
- --------------------------------------------------------------------------------
BELGIUM -- 2.4%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
233 Audiofina................................... 122
6,500 CMB......................................... 501
1,600 D'Ieteren Trading........................... 119
7,669 Fortis...................................... 790
5,930 Generale Banque............................. 1,867
14,120 Kredietbank................................. 3,504
11,000 wts. *National Portefeuille, 6/15/99.............. 34
4,070 shs. UCB......................................... 3,624
10,561
CORPORATE BOND
4,522,500 BEL Kredietbank, Cv., 5.75%,
11/30/03.................................. 152
TOTAL BELGIUM 10,713
- --------------------------------------------------------------------------------
CZECH REPUBLIC -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCK
3,900 shs. IPS Praha................................... 297
- --------------------------------------------------------------------------------
DENMARK -- 0.7%
- --------------------------------------------------------------------------------
COMMON STOCKS
14,070 Den Danske Bank............................. 845
10,000 Incentive................................... 617
3,800 Silcon 'B'.................................. 187
8,030 Tele Danmark 'B'............................ 419
16,740 Unidanmark 'A'.............................. 766
2,834
CORPORATE BOND
900,000 DKK Danske Traelastkompagni,
Cv., 5.25%,1/1/02......................... 218
TOTAL DENMARK 3,052
- --------------------------------------------------------------------------------
FINLAND -- 0.4%
- --------------------------------------------------------------------------------
COMMON STOCK
11,000 shs. Huhtamaki Oy 'I'............................ 356
PREFERRED STOCK
38,800 shs. Nokia Oy 'A'................................ $ 1,585
TOTAL FINLAND 1,941
- --------------------------------------------------------------------------------
FRANCE -- 13.3%
- --------------------------------------------------------------------------------
COMMON STOCKS, RIGHTS & WARRANTS
17,840 Accor....................................... 2,048
10,750 Assurances Generales de
France.................................... 356
1,500 Banque Nationale de Paris
Intercont................................. 78
1,965 But......................................... 370
1,100 C.E.E....................................... 110
21,200 CMB Packaging............................... 752
2,761 Cardif...................................... 308
9,740 Carrefour................................... 4,886
3,100 Centrale pour L'Industrie................... 183
6,645 Chargeurs................................... 1,325
6,645 rts. *Chargeurs................................... 131
1,000 shs. Christian Dalloz............................ 163
1,000 wts. *Christian Dalloz, 12/31/98.................. 26
34,889 shs. Cie de St. Gobain........................... 4,516
4,000 Cipe France................................. 554
3,600 Club Mediterranee........................... 363
1,527 Concorde.................................... 218
2,700 Dauphin..................................... 143
1,000 De Dietrich & Cie........................... 562
75,244 Eaux Cie Generale........................... 7,932
8,343 Ecco Travail Temporaire..................... 555
39,120 Elf Aquitaine............................... 3,126
3,111 Guilbert.................................... 282
3,682 L'Oreal..................................... 970
25,718 LVMH........................................ 4,893
27,045 Lafarge-Coppee.............................. 2,108
5,000 Legris...................................... 378
3,600 Manutan..................................... 366
3,030 MGI Coutier................................. 322
12,000 Moulinex.................................... 283
12,110 Peugeot..................................... 1,747
7,880 Pinault Printemps........................... 1,783
11,110 Poliet...................................... 983
450 Primagaz.................................... 84
8,600 Rochefortaise
Communication............................. 322
2,450 SITA........................................ 346
1,400 Sidel....................................... 409
2,300 Societe Des Immeubles
de France................................... 161
6,230 Societe Generale de France.................. 685
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
4,733 shs. Spir Communication.......................... $ 459
45,918 Television Francaise........................ 4,196
44,650 Total 'B'................................... 2,791
84,150 Valeo....................................... 4,795
7,000 Vallourec................................... 350
1,866 Virbac...................................... 203
3,965 Vulcanic.................................... 140
7,879 Z Groupe Zannier............................ 205
57,966
CORPORATE BOND
174,410 FRF Virbac, Cv., 5.00%, 1/1/01.................. 35
TOTAL FRANCE 58,001
- --------------------------------------------------------------------------------
GERMANY -- 7.5%
- --------------------------------------------------------------------------------
COMMON STOCKS
1,470 shs. Allianz Holdings............................ 2,705
800 Altana...................................... 425
1,300 Balcke Durr................................. 324
9,770 Bayer....................................... 2,403
2,071 Bayerische Motoren Werke.................... 1,059
4,882 Deutsche Bank............................... 2,389
2,000 Dorries Scharmann........................... 199
600 Duerr Beteiligungs.......................... 190
550 F.A. Gunther & Sohn......................... 152
9,344 Gehe........................................ 4,017
6,370 Hoechst..................................... 1,362
500 Klein, Schanzlin & Becker................... 106
687 Leffers..................................... 144
14,110 Mannesmann.................................. 3,827
325 Pfleiderer Bau und Verkehrssysteme.......... 128
4,800 Pittler Maschinenfabrik..................... 251
1,111 Plettac..................................... 689
648 Rhon Klinikum............................... 617
4,083 Schering.................................... 3,054
600 Sixt........................................ 151
100 Sixt, participating certificates............ 76
5,443 Veba........................................ 2,026
1,200 Vereinigte Baubeschlag Handel............... 377
140 Victoria Holdings........................... 108
5,434 Volkswagen.................................. 1,505
28,284
PREFERRED STOCKS
540 Edding...................................... 165
155 *Einhell Hans................................ 34
600 Hach........................................ 258
792 Hornbach.................................... 949
650 Klein, Schanzlin & Becker................... 108
875 Leffers..................................... 174
450 Marschollek Lautenschlaeger................. 263
1,000 Porsche..................................... 365
1,650 Signal Bau Huber............................ 220
1,000 Sixt........................................ 228
1,400 Spar Handells............................... 362
601 Sto......................................... 392
2,200 Villeroy & Boch............................. 428
1,828 Westag & Getalit............................ 464
4,410
TOTAL GERMANY 32,694
- --------------------------------------------------------------------------------
HUNGARY -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
310 *Chinoin..................................... 100
28,000 Fotex (ATS)................................. 49
6,800 Richter Gedeon (USD)........................ 115
TOTAL HUNGARY 264
- --------------------------------------------------------------------------------
IRELAND -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
96,000 Abbey....................................... 196
350,000 Barlo Group................................. 229
24,000 Grafton Group............................... 146
600,000 *Kenmare Resources (GBP)..................... 125
181,900 Kingspan Group.............................. 440
TOTAL IRELAND 1,136
- --------------------------------------------------------------------------------
ISRAEL -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
4,000 Discount Investment......................... 265
10,000 Teva Pharmaceutical
ADR (USD)................................... 347
TOTAL ISRAEL 612
- --------------------------------------------------------------------------------
ITALY -- 4.0%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
525 Alleanza Assicurazioni, savings shares...... 5
126,155 Assicurazioni Generali...................... 3,039
84,000 Cementeria di Augusta....................... 118
180,000 Danieli & Company, savings shares........... 580
22,750 wts. *Danieli & Company, 11/30/99................. 18
300,000 shs. Editoriale la Republica..................... 382
33,000 Fila Holdings ADR (USD)..................... 738
59,273 Imi......................................... 362
7,000 Industrie Natuzzi ADR (USD)................. 257
143,281 Italgas..................................... 378
27,624 Merloni Electrodomestici.................... 93
</TABLE>
5
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price European Stock Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(value in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
ITALY (Cont'd)
- --------------------------------------------------------------------------------
212,624 shs. Merloni Electrodomestici,
savings shares............................ $ 340
33,800 Saes Getters................................ 411
32,200 Saes Getters, savings shares................ 178
743,300 Stet........................................ 2,119
319,935 Stet, savings shares........................ 735
309,000 Tecnost..................................... 700
20,000 Telecocavi, savings shares.................. 47
1,538,205 Telecom Italia.............................. 4,105
1,191,230 Telecom Italia,
savings shares............................ 2,486
120,000 Vianini Lavori.............................. 194
17,285
CORPORATE BOND
136,500,000 ITL Danieli & Company,
7.25%, 1/1/00............................. 65
TOTAL ITALY 17,350
- --------------------------------------------------------------------------------
NETHERLANDS -- 16.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
51,508 shs. ABN Amro Holdings........................... 1,981
3,500 Aalberts Industries......................... 187
1,860 Ahrend Groep................................ 231
24,460 Akzo Nobel.................................. 2,837
3,500 Atag........................................ 266
97,055 CSM......................................... 4,446
1,910 Crown van Gelder............................ 209
4,000 Draka Holdings.............................. 101
1,256,990 Elsevier.................................... 13,768
59,154 Fortis Amev................................. 3,125
7,000 Frans Maas Groep
Koninklijke............................... 194
4,500 Hagemeyer................................... 389
7,750 International - Muller...................... 494
82,230 Internationale Nederlanden
Groep..................................... 4,334
48,038 Koninklijke PTT Nederland................... 1,674
1,950 Otra........................................ 394
105,146 Polygram.................................... 5,934
3,200 Polynorm.................................... 336
6,500 Randstad Holdings........................... 390
86,990 Royal Dutch Petroleum....................... 10,733
7,200 Sphinx Gustavsberg.......................... 239
31,770 Unilever.................................... 4,251
183,404 Wolters Kluwer.............................. 14,924
71,437
PREFERRED STOCK
10,947 Internationale Nederlanden
Groep..................................... 54
TOTAL NETHERLANDS 71,491
- --------------------------------------------------------------------------------
NORWAY -- 2.7%
- --------------------------------------------------------------------------------
COMMON STOCKS
19,500 shs. Awilco 'B'.................................. $ 211
22,980 Bergesen 'A'................................ 502
7,480 Det Norske
Luftfartselskap 'B'....................... 301
24,910 Kvaerner 'A'................................ 1,140
19,600 Kverneland Gruppen.......................... 291
15,175 Liva Bil 'A'................................ 287
176,051 Moelven Industrier.......................... 247
13,000 Nera........................................ 288
92,975 Norsk Hydro................................. 3,791
11,000 Norske Skogsindustrier 'A'.................. 376
66,844 Orkla 'A'................................... 2,870
20,000 Schibsted................................... 241
26,100 Sensonor.................................... 237
23,000 Smedvig Tankships........................... 162
35,000 Sysdeco Group............................... 258
94,000 Tomra Systems............................... 346
38,500 Wilrig...................................... 300
TOTAL NORWAY 11,848
- --------------------------------------------------------------------------------
POLAND -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCKS
5,040 Bank Slaski................................. 329
40,000 Elektrim.................................... 153
186,843 *International UNP Holdings
(CAD)..................................... 75
24,750 Mostostal Export............................ 139
TOTAL POLAND 696
- --------------------------------------------------------------------------------
PORTUGAL -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
16,662 Jeronimo Martins............................ 850
12,000 *Jornalgeste................................. 203
6,000 Lusotur Sociedad Financeira
de Tur.................................... 112
4,000 Salvador Caetano............................ 77
14,000 Sumolis Industria de Frutas
Bebidas................................... 149
TOTAL PORTUGAL 1,391
- --------------------------------------------------------------------------------
RUSSIA -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCK
52,200 *Petersburg Long Distance
(USD)..................................... 255
- --------------------------------------------------------------------------------
SPAIN -- 4.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
7,000 Azkoyen..................................... 445
8,114 Banco Popular Espanol....................... 1,108
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
23,550 shs. Banco Santander............................. $ 860
131,612 Centros Comerciales Pryca................... 2,330
75,000 Corporacion Financiaera
Reunida................................... 243
86,214 Empresa Nacional de
Electricidad.............................. 4,075
30,000 Energia e Industrias
Aragonesas................................ 154
1,826 Europistas.................................. 16
35,000 Filo........................................ 256
17,500 *Filo, new................................... 126
13,410 Fomento de Construcciones
y Contra.................................. 1,231
20,072 Gas Natural................................. 2,005
16,000 Grupo Anaya................................. 421
51,000 Grupo Duro Felguera......................... 194
5,500 Inmobiliaria Metropolitana
Vasco..................................... 162
38,820 Marco Iberica Distribucion
de Edic................................... 410
12,500 Prosegur Compania
Securidad................................. 260
108,138 Repsol...................................... 3,443
50,000 Sotogrande.................................. 120
17,859
CORPORATE BOND
4,500,000 ESP Grupo Anaya, Cv., 7.00%,
3/18/98................................... 37
TOTAL SPAIN 17,896
- --------------------------------------------------------------------------------
SWEDEN -- 5.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
35,000 shs. Angpanne Foreningen 'B'..................... 554
24,000 Arjo........................................ 373
13,330 Asea 'A'.................................... 1,125
188,550 Astra 'B'................................... 5,372
189,640 Atlas Copco 'B'............................. 2,610
380,000 BPA 'A'..................................... 654
46,000 Catena 'A'.................................. 329
51,800 Electrolux 'B'.............................. 2,645
23,810 Esselte 'B'................................. 311
21,000 Euroc Industriab 'A'........................ 422
529,000 Finnveden 'B'............................... 513
177,000 Frontline................................... 487
12,104 Gambro 'B'.................................. 158
18,550 Getinge Industrier 'B'...................... 570
21,910 Hennes & Mauritz 'B'........................ 1,481
26,000 *Hoganas 'B'................................. 440
46,700 ICB Shipping 'B'............................ 357
28,000 Kalmar Industries........................... 384
21,000 Linjebuss 'A'............................... 289
81,590 Sandvik 'B'................................. 1,516
52,470 Scribona 'B'................................ 394
6,000 Securitas 'B'............................... 180
55,250 Stena Line 'B'.............................. 279
15,130 Stora Kopparberg 'B'........................ 1,016
24,000 TV 4 'A'.................................... 459
22,918
CORPORATE BOND
281,250 SEK Stena Line, Cv., 7.00%,
4/30/01................................... 36
TOTAL SWEDEN 22,954
- --------------------------------------------------------------------------------
SWITZERLAND -- 7.2%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
6,520 shs. BBC Brown Boveri & Cie...................... 6,432
135 Bil GT Gruppe, participating
certificates.............................. 67
220 Bobst....................................... 299
450 Bossard Holdings............................ 648
200 Bucher Holding.............................. 115
800 wts. *Bucher Holding, 7/21/95..................... 20
200 *Bucher Holding, 10/27/95.................... 0
3,347 shs. CS Holdings................................. 1,398
2,556 Ciba Geigy.................................. 1,748
1,600 Generale D'Affichage........................ 530
165 Gurit Heberlien............................. 338
500 Hilti....................................... 386
450 Magazine Zum Globus......................... 298
1,000 Mikron Holding.............................. 79
3,000 *Mikron Holding, new......................... 236
5,635 Nestle...................................... 5,500
1,400 Porst Holdings.............................. 278
981 Roche Holdings.............................. 5,892
3,499 Sandoz...................................... 2,286
475 *Saurer...................................... 171
1,695 Schweizerische
Bankgesellschaft.......................... 1,558
6,660 Schweizerischer Bankverein.................. 2,190
150 Sig Schweiz................................. 338
1,261 Sika Finanz................................. 371
1,800 Suter & Suter............................... 78
3,100 Von Moos.................................... 325
TOTAL SWITZERLAND 31,581
- --------------------------------------------------------------------------------
UNITED KINGDOM -- 27.6%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
488,080 Abbey National.............................. 3,644
27,000 wts. *Abtrust Lloyds Insurance
Trust..................................... 12
256,000 shs. Argos....................................... 1,673
426,000 Argyll Group................................ 1,963
</TABLE>
7
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price European Stock Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(value in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
UNITED KINGDOM (Cont'd)
- --------------------------------------------------------------------------------
1,463,430 shs. Asda Group.................................. $ 1,919
76,666 Ashtead Group............................... 534
28,250 Avon Rubber................................. 214
89,000 BAA......................................... 680
1,150,000 *BCE Holdings................................ 254
75,000 Baggeridge Brick............................ 158
94,000 Berisford International..................... 369
467,616 Birkdale Group.............................. 40
26,664 *British Biotechnology....................... 213
5,500 wts. *British Biotechnology....................... 4
414,250 shs. British Gas................................. 2,007
177,000 British Petroleum........................... 1,276
315,630 Britton Group............................... 731
611,750 Bruntcliffe Aggregates...................... 285
155,600 CALA........................................ 285
257,777 CRT Group................................... 375
475,110 Cable & Wireless............................ 3,058
440,753 Cadbury Schweppes........................... 3,178
871,810 Caradon..................................... 3,465
125,000 Carpetright................................. 510
427,829 Casket...................................... 107
140,000 Chamberlain Phipps.......................... 393
296,000 Coats Viyella............................... 969
185,000 Corporate Services Group.................... 232
307,578 Crestacare.................................. 158
182,510 David S. Smith.............................. 1,630
62,500 Devro International......................... 236
13,500 Druck Holdings.............................. 320
91,128 East Midlands Electricity................... 961
88,730 Eastern Group............................... 905
171,042 Enviromed................................... 228
90,000 Eurodollar Holdings......................... 314
125,000 Ferraris Group.............................. 155
100,000 Finelist Group.............................. 352
182,570 First National Finance...................... 220
30,000 First Technology............................ 199
86,000 Frost Group................................. 374
379,540 Glaxo....................................... 4,489
639,420 Grand Metropolitan.......................... 4,106
2,062,500 Graystone................................... 423
619,040 Guinness.................................... 4,682
230,000 HTV Group................................... 696
160,000 Halkin Holdings............................. 178
140,580 Heath....................................... 543
55,000 Helical Bar................................. 277
13,000 Henderson Administration
Group....................................... 233
100,000 Hi-Tech Sports.............................. 29
675,000 Hobson...................................... 304
110,000 Ibstock..................................... 140
90,000 Ingham...................................... 77
155,000 JBA Holdings................................ 392
202,690 shs. John Laing 'A'.............................. $ 659
60,000 Keller Group................................ 98
71,250 Kenwood Appliances.......................... 323
90,000 Kewill Systems.............................. 406
325,731 Kingfisher.................................. 2,338
377,250 Ladbroke Group.............................. 1,081
167,000 London & Overseas
Freighters.................................. 183
323,910 London Electricity.......................... 3,310
44,000 Mackie International Group.................. 168
92,000 Matthew Clark............................... 882
595,000 Mayflower................................... 594
150,000 Millgate.................................... 27
313,000 Mirror Group................................ 677
171,000 Monument Oil & Gas.......................... 175
1,137,500 My Kinda Town............................... 192
230,000 NSM......................................... 378
1,066,410 National Westminster Bank................... 9,301
247,035 Northern Leisure............................ 318
175,000 Oliver Group................................ 259
358,333 Pentos...................................... 0
57,000 Peter Black Holdings........................ 214
70,000 *Pillar Property Investments................. 182
115,000 Pizza Express............................... 254
260,000 *Polly Peck International.................... 0
72,000 Powerscreen International................... 322
78,000 *Precoat International....................... 158
260,000 Princedale Group............................ 105
1,911,369 Prospect Industries......................... 338
119,701 Prowting.................................... 218
104,561 Quadramatic................................. 343
64,000 RJB Mining.................................. 438
178,060 RTZ......................................... 2,258
50,000 Ramco Energy................................ 269
745,625 Rank Organisation........................... 5,100
603,940 Reed International.......................... 7,775
8,645,760 *Regal Hotel Group........................... 209
312,201 Rolls Royce................................. 857
50,000 Rosebys..................................... 93
691,399 *Roxspur..................................... 172
82,500 Serco Group................................. 325
255,000 Shandwick................................... 140
399,310 Shell Transport & Trading................... 4,723
904,100 Smithkline Beecham,
equity units................................ 6,955
88,500 South Western Electricity................... 943
269,388 Spring Ram.................................. 173
188,750 Stakis...................................... 257
110,000 Sterling Publishing......................... 57
315,000 Stirling Group.............................. 279
2,917,396 Sunleigh.................................... 164
173,554 Symonds Engineering......................... 84
533,000 T & N....................................... 1,287
337,380 Taylor Nelson............................... 190
</TABLE>
8
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
295,500 shs. Tesco....................................... $ 1,327
1,336,770 Tomkins..................................... 5,012
830,000 Tomorrow's Leisure.......................... 127
438,500 Transtec.................................... 515
44,000 Trifast..................................... 184
197,774 UK Estates.................................. 61
165,000 Ugland International........................ 279
311,390 United Newspapers........................... 2,491
120,000 VCI......................................... 319
1,403,892 Verity Group................................ 181
120,000 Vibroplant.................................. 199
225,000 *Videologic Group............................ 152
270,000 WPP Group................................... 474
605,547 Wellman..................................... 390
201,111 Wickes...................................... 353
2,600,000 Wiggins Group............................... 146
830,000 Wills Group................................. 167
119,797
PREFERRED STOCKS
206,800 Berisford International, 5.00%
Cv. Loan Stock, 2015....................... 344
27,428 First National Finance,
Cum. Cv., 7.00%............................ 58
35,000 Iceland Group, Cum. Cv...................... 79
481
TOTAL UNITED KINGDOM 120,278
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.7%
- --------------------------------------------------------------------------------
COMMERCIAL PAPER
$5,000,000 ANZ (Delaware), 6.00%,
8/1/95..................................... 4,920
5,000,000 Commerzbank, 6.00%,
7/17/95.................................... 4,931
55,000 President & Fellows Harvard
College, 5.93%, 5/1/95..................... 55
5,000,000 U.S. Bancorp, 6.05%, 6/12/95................ 4,927
5,100,000 UBS Finance (Delaware),
5.93%, 5/1/95.............................. 5,097
19,930
OTHER
5,000,000 Avco Financial Services,
Floating Rate Medium-
Term Note, 6.08168%,
12/21/95.................................... 5,000
TOTAL SHORT-TERM INVESTMENTS 24,930
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 98.6% OF NET
ASSETS (COST $369,652) $429,605
- --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES........................................ 5,970
--------
NET ASSETS CONSIST OF: Value
--------
Accumulated net investment
income - net of distributions.................... $ 2,053
Accumulated net realized gain/loss -
net of distributions............................. 2,977
Net unrealized gain (loss)......................... 60,086
Paid-in-capital applicable to
32,950,003 shares of $0.01 par
value capital stock outstanding;
2,000,000,000 shares of the
Corporation authorized.......................... 370,459
--------
NET ASSETS........................................................... $435,575
========
NET ASSET VALUE PER SHARE............................................ $13.22
======
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing
(ATS) Austrian schilling
(BEL) Belgian franc
(CAD) Canadian dollar
(DKK) Danish krone
(ESP) Spanish peseta
(FRF) French franc
(GBP) British sterling
(ITL) Italian lira
(SEK) Swedish krona
(USD) U.S. dollar
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
T. Rowe Price European Stock Fund / Six Months Ended April 30, 1995 (Unaudited)
(in thousands)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividend (net of foreign taxes of $601).......................... $ 3,665
Interest......................................................... 666
-------
Total income..................................................... 4,331
-------
Expenses
Investment management............................................ 1,564
Shareholder servicing............................................ 456
Custody and accounting........................................... 134
Prospectus & shareholder reports................................. 50
Registration..................................................... 47
Legal and audit.................................................. 18
Proxy and annual meeting......................................... 16
Directors........................................................ 6
Miscellaneous.................................................... 12
-------
Total expenses................................................... 2,303
-------
Net investment income.............................................. 2,028
-------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities....................................................... 4,140
Foreign currency transactions.................................... (324)
-------
Net realized gain (loss)......................................... 3,816
-------
Change in net unrealized gain or loss on:
Securities....................................................... 17,215
Other assets and liabilities denominated in
foreign currencies............................................. 44
Change in net unrealized gain or loss............................ 17,259
-------
Net realized and unrealized gain (loss)............................ 21,075
-------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.................. $23,103
=======
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
T. Rowe Price European Stock Fund (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income....................................................... $ 2,028 $ 3,815
Net realized gain (loss).................................................... 3,816 13,484
Change in net unrealized gain or loss....................................... 17,259 16,451
-------- ---------
Increase (decrease) in net assets from operations........................... 23,103 33,750
-------- ---------
Distributions to shareholders
Net investment income....................................................... (3,554) (936)
Net realized gain........................................................... (1,481) (234)
-------- ---------
Decrease in net assets from distributions................................... (5,035) (1,170)
-------- ---------
Capital share transactions*
Shares sold................................................................. 137,543 207,976
Distributions reinvested.................................................... 4,733 1,043
Shares redeemed............................................................. (62,267) (169,885)
-------- ---------
Increase (decrease) in net assets from capital share transactions........... 80,009 39,134
-------- ---------
Increase (decrease) in net assets............................................. 98,077 71,714
NET ASSETS
Beginning of period........................................................... 337,498 265,784
-------- ---------
End of period................................................................. $435,575 $ 337,498
======== =========
- --------------------------------------------------------------------------------------------------------------------
*Share information
Shares sold................................................................. 11,090 17,242
Distributions reinvested.................................................... 393 88
Shares redeemed............................................................. (5,066) (14,183)
-------- ---------
Increase (decrease) in shares outstanding................................... 6,417 3,147
======== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price European Stock Fund / April 30, 1995 (Unaudited)
NOTE 1- SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the Corporation) is registered under
the Investment Company Act of 1940. The European Stock Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the Corporation.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange (including NASDAQ) are valued at the last quoted sales price at the
time the valuations are made. A security which is listed or traded on more
than one exchange is valued at the quotation on the exchange determined to be
the primary market for such security. Other equity securities and those
listed securities that are not traded on a particular day are valued at a
price within the limits of the latest bid and asked prices deemed by the
Board of Directors, or by persons delegated by the Board, best to reflect
fair value.
Debt securities are generally traded in the over-the-counter market and
are valued at a price deemed best to reflect fair value as quoted by dealers
who make markets in these securities or by an independent pricing service.
Short-term debt securities are valued at their cost which, when combined with
accrued interest, approximates fair value.
For purposes of determining the fund's net asset value per share, the
U.S. dollar value of all assets and liabilities initially expressed in
foreign currencies is determined by using the mean of the bid and offer
prices of such currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the officers
of the fund, as authorized by the Board of Directors.
B) Currency Translation - Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized and
unrealized security gains and losses is reflected as a component of such
gains and losses.
C) Other - Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on an identified cost basis. Dividend income and distributions
to shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles.
NOTE 2- INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term and U.S.
government securities, aggregated $82,585,000 and $31,618,000, respectively,
for the six months ended April 30, 1995.
NOTE 3- FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income.
At April 30, 1995, the aggregate cost of investments for federal income
tax and financial reporting purposes was $369,652,000 and net unrealized gain
aggregated $59,953,000, of
12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
which $72,490,000 related to appreciated investments and $12,537,000 to
depreciated investments.
NOTE 4- RELATED PARTY TRANSACTIONS
The fund is managed by Rowe Price-Fleming International, Inc. (Price-Fleming),
which is owned by T. Rowe Price Associates, Inc. (Price Associates), Robert
Fleming Holdings Limited, and Jardine Fleming Holdings Limited under a joint
venture agreement.
The investment management agreement between the fund and Price-Fleming
(the Manager) provides for an annual investment management fee, of which
$288,000 was payable at April 30, 1995. The fee is computed daily and paid
monthly, and consists of an Individual Fund Fee equal to 0.50% of average
daily net assets and a Group Fee. The Group Fee is based on the combined
assets of certain mutual funds sponsored by the Manager or Price Associates
(the Group). The Group Fee rate ranges from 0.48% for the first $1 billion of
assets to 0.31% for assets in excess of $34 billion. At April 30, 1995, and
for the six months then ended, the effective annual Group Fee rate was 0.34%.
The fund pays a pro rata share of the Group Fee based on the ratio of its net
assets to those of the Group.
In addition, the fund has entered into agreements with Price Associates
and two wholly owned subsidiaries of Price Associates, pursuant to which the
fund receives certain other services. Price Associates computes the daily
share price and maintains the financial records of the fund. T. Rowe Price
Services, Inc. (TRPS) is the fund's transfer and dividend disbursing agent
and provides shareholder and administrative services to the fund. T. Rowe
Price Retirement Plan Services, Inc. provides subaccounting and recordkeeping
services for certain retirement accounts invested in the fund. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $411,000 for the six months ended April 30, 1995, of which $91,000
was payable at period-end.
During the six months ended April 30, 1995, the fund, in the ordinary
course of business, paid commissions of $10,000 to, and placed security
purchase and sale orders aggregating $4,423,000 with, certain affiliates of
the Manager in connection with the execution of various portfolio
transactions.
13
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
T. Rowe Price European Stock Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
-------------------------------------------------------------------------------
From
February 28,
1990
Six Months Year Ten Months Year ended (Commencement
Ended Ended Ended December 31, of Operations) to
April 30, October 31, October 31, ------------------ December 31,
1995 1994 1993++ 1992 1991 1990
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................ $12.72 $11.37 $9.36 $10.09 $9.48 $10.00
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income.......................... 0.05 0.14 0.12 0.14 0.10 0.24*
Net realized and unrealized
gain (loss)................................. 0.62 1.26 1.89 (0.70) 0.59 (0.56)
------ ------ ------ ------ ------ ------
Total from Investment Activities............... 0.67 1.40 2.01 (0.56) 0.69 (0.32)
------ ------ ------ ------ ------ ------
Distributions
Net investment income.......................... (0.12) (0.04) -- (0.17) (0.08) (0.20)
Net realized gain.............................. (0.05) (0.01) -- -- -- --
------ ------ ------ ------ ------ ------
Total Distributions............................ (0.17) (0.05) -- (0.17) (0.08) (0.20)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.................... $13.22 $12.72 $11.37 $9.36 $10.09 $9.48
====== ====== ====== ====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Total Return...................................... 5.4% 12.4% 21.5% (5.6)% 7.3% (3.2)%*
Ratio of Expenses to Average
Net Assets..................................... 1.24%+ 1.25% 1.35%+ 1.48% 1.71% 1.75%+*
Ratio of Net Investment Income to
Average Net Assets............................. 1.09%+ 1.19% 1.79%+ 1.23% 1.04% 2.30%+*
Portfolio Turnover Rate........................... 17.8%+ 24.5% 21.3%+ 52.0% 57.7% 34.9%+
Net Assets, End of Period
(in thousands)................................. $435,575 $337,498 $265,784 $173,798 $103,977 $99,447
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
++ The Fund's fiscal year-end was changed to October 31.
* Excludes expenses in excess of a 1.75% voluntary expense limitation in
effect through December 31, 1991.
+ Annualized
14
<PAGE>
- --------------------------------------------------------------------------------
Shareholder Services
- --------------------------------------------------------------------------------
To help shareholders monitor their current investments and make decisions
that accurately reflect their financial goals, T. Rowe Price offers a wide
variety of information and services--at no extra cost.
KNOWLEDGEABLE SERVICE REPRESENTATIVES
BY PHONE--Shareholder service representatives are available from 8:00 a.m. to
10:00 p.m., Monday - Friday, and weekends from 9:00 a.m. to 5:00 p.m ET. Call
1-800-225-5132 to speak directly with a representative who will be able to
assist you with your accounts.
IN PERSON--Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. While
there, you can drop off applications or obtain prospectuses and other
literature.
AUTOMATED 24-HOUR SERVICES
Tele*Access(R) (1-800-638-2587) provides information such as account
balance, date and amount of your last transaction, latest dividend payment,
and fund prices and yields. Additionally, you have the ability to request
prospectuses, statements, account and tax forms; reorder checks; and initiate
purchase, redemption, and exchange orders for identically registered
accounts.
PC*Access(R) provides the same information as Tele*Access, but on a
personal computer via dial-up modem.
ACCOUNT SERVICES
Checking--Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield Fund and Emerging Markets Bond
Fund).
Automatic Investing--Build your account over time by investing directly
from your bank account or paycheck with Automatic Asset Builder.
Additionally, Automatic Exchange enables you to set up systematic investments
from one fund account into another, such as from a money fund into a stock
fund. A low, $50 minimum makes it easy to get started.
Automatic Withdrawal--If you need money from your fund account on a
regular basis, you can establish scheduled, automatic redemptions.
Dividend and Capital Gains Payment Options--Reinvest all or some of your
distributions, or take them in cash. We give you maximum flexibility and
convenience.
INVESTMENT INFORMATION
Combined Statement--A comprehensive overview of your T. Rowe Price
accounts. The summary page gives your earnings by tax category, provides
total portfolio value, and lists your investments by type--stock, bond, and
money market. Detail pages itemize account transactions by fund.
Quarterly Shareholder Reports--Portfolio managers review the performance
of the funds in plain language and discuss T. Rowe Price's economic outlook.
The T. Rowe Price Report--A quarterly newsletter with relevant articles
on market trends, personal financial planning, and T. Rowe Price's economic
perspective.
Insights--A library of information that includes reports on mutual fund
tax issues, investment strategies, and financial markets.
Detailed Investment Guides--Our widely acclaimed Asset Mix Worksheet,
College Planning Kit, Retirees Financial Guide, Retirement Planning Kit (also
available on disk for PC use), and Guide to Risk-Adjusted Performance can
help you determine and reach your investment goals.
DISCOUNT BROKERAGE
You can trade stocks, bonds, options, precious metals, and other securities
at a substantial savings over regular commission rates. Call a shareholder
service representative for more information.
15
<PAGE>
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
T. Rowe Price
- -------------
EUROPEAN STOCK FUND
APRIL 30, 1995
FOR YIELD, PRICE, LAST TRANSACTION, AND
CURRENT BALANCE, 24 HOURS,
7 DAYS A WEEK, CALL:
1-800-638-2587 toll free
625-7676 Baltimore area
FOR ASSISTANCE WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. ROWE PRICE
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distri-
bution only to shareholders and to
others who have received a copy of
the prospectus of the T. Rowe Price
European Stock Fund.
T. Rowe Price
Invest With Confidence/(R)/
ESF
