<PAGE>
- --------------------------------------------------------------------------------
Fellow Shareholders
- --------------------------------------------------------------------------------
Returns for the second fiscal quarter were strong, although the entire
six-month period ended April 30 was more difficult for your fund. Results
were essentially in line with the unmanaged Morgan Stanley Capital
International Europe, Australia and Far East (EAFE) Index in the quarter, but
trailed for the longer period. The main reason for the difference was the
sharp correction in Latin American markets, where the fund has small
positions while the index excludes them. In addition, a number of smaller
Pacific markets where your fund was overweighted performed poorly. However,
sentiment improved significantly in international markets by February, and
the fund has done well since then.
- --------------------------------------------------------------------------------
Performance Comparison
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Periods Ended 4/30/95
3 Months 6 Months
---------------------
<S> <C> <C>
International Stock Fund 9.4% -3.3%
MSCI EAFE* 9.9 1.2
S&P 500 10.1 10.5
</TABLE>
- --------------------------------------------------------------------------------
*Net of withholding taxes
From the beginning of the calendar year, the U.S. has performed best among
established markets, fueled by a combination of strong earnings and increasing
optimism that interest rates might be peaking. In dollar terms, several European
markets were able to keep pace with the unmanaged S&P 500 Stock Index, primarily
because their currencies were appreciating rapidly against the dollar. In the
Far East, market results were more pedestrian with poor sentiment affecting the
smaller markets, which received little help from their U.S. dollar-linked
currencies. Japanese stocks have been quite weak this year in local currency
terms, but the exceptional strength of the yen was enough to put the market
solidly in positive territory measured in dollars.
Turning to economic conditions, the U.S. continued to lead the cycle, but
there are now clear signs of recovery in Europe. Southeast Asia has maintained
high rates of growth, but Latin America remains mixed with Mexico suffering the
consequences of the peso devaluation. The Brazilian economy has entered a period
of robust growth.
In the currency markets, the dollar fell to all-time lows against the yen
and the German mark, although it strengthened after the end of the quarter. It
has also been weak against most other European currencies but has proved more
stable on a trade-weighted basis given the weakness of the Canadian dollar and a
number of Latin American currencies. Reasons cited for the dollar's weakness are
perceptions that U.S. interest rates may have hit their highest levels, and also
that the trade and budget deficits remain uncomfortably large.
INVESTMENT ENVIRONMENT
FAR EAST
In the Pacific, the most important event in the quarter was the sharp
appreciation of the yen against the U.S. dollar, which declined in value to 85
yen from just under 100. JAPANESE institutions, perhaps including the
government, have been increasingly reluctant to hold dollars, and Japan's huge
trade surplus with the U.S. has also contributed to dollar weakness. Earlier in
the year, Japanese economy showed tentative signs of recovery, but the speed and
strength of this latest yen burst has put the recovery in doubt. In our view,
the recovery will not be aborted, but company profits will continue to be
disappointing.
- --------------------------------------------------------------------------------
Geographical Diversification
- --------------------------------------------------------------------------------
[GRAPH APPEARS HERE]
Shows Europe 49%; Japan 23%; Far East 14%; and Other and Reserves 8%.
Based on net assets as of April 30, 1995.
<PAGE>
Elsewhere in the region, stock markets recovered strongly from the
depressed levels of early March. In HONG KONG, inflation and growth are
decelerating and, with the local currency linked to the U.S. dollar, optimism
about lower U.S. interest rates has buoyed sentiment. Economic growth in
MALAYSIA remains very strong, led by exports and spending on infrastructure.
With signs of inflation picking up and a possible erosion of its current account
surplus, a period of lower growth would be welcome. The political and economic
backdrop to this market remains positive.
SINGAPORE'S economy has also been showing continuously high rates of
growth, yet inflation remains surprisingly low. A healthy current account
surplus and strong government finances are additional pluses for this superbly
managed economy. The stock market has been more subdued than its neighbors'
recently, but less affected by the difficult period for minor markets that
occurred at the turn of the year.
In AUSTRALIA, the economy has now passed its cyclical peak and should slow
to more sustainable levels. Unlike other Pacific Basin economies, Australia's is
very cyclical, and our moderate positions there focus where possible on
companies with the potential for steady growth. The star of the region was NEW
ZEALAND where stocks returned over 17% in U.S. dollar terms for the past three
months. A highly credible commitment to low inflation, a government surplus, and
a strong current account position have attracted international investors.
EUROPE
The story in Europe is of widening economic recovery, with the U.K. leading the
Continent. The U.K. is closer to the same point in the economic cycle as the
U.S. in that the economy has been growing steadily for some time and the
authorities have been inching interest rates higher to counter the threat of
inflation. The retail price index drifted up to above 3% from historically low
levels under 2% last year. However, there are signs that the economy may be
slowing. The stock market seems to be taking an optimistic view overall, with
prices well up from the end of February.
In GERMANY, a combination of higher than expected wage settlements and a
strong mark will probably benefit the consumer at the expense of the export
sector. This means that while
- --------------------------------------------------------------------------------
Market Performance
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3 Months Ended 4/30/95
------------------------------
Local Currency
Local vs. U.S. In U.S.
Currency Dollars Dollars
------------------------------
<S> <C> <C> <C>
Australia 13.7% -3.9% 9.3%
France 8.9 7.1 16.6
Germany 1.1 9.6 10.8
Hong Kong 14.9 0.0 14.9
Italy -0.6 -4.7 -5.3
Japan -7.4 17.8 9.0
Mexico -5.2 7.2 1.6
Netherlands 2.0 9.7 11.9
Norway -3.6 6.8 3.0
Singapore 3.4 4.3 7.8
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" utilizing MSCI Indices.
Germany's tentative economic recovery should continue, it is likely to be steady
and prolonged rather than spectacular. The picture is brighter in the former
East Germany as well as the countries of Eastern Europe, which are at various
stages of joining the European Union. These developments point to Germany
retaining its position as Europe's economic locomotive, well positioned to take
advantage of the economic renaissance in the East.
In FRANCE, Jacques Chirac won the presidency in the second round of voting.
At present it is difficult to say what this means for economic policy; there may
be some moderation of the strong franc policy that led to stable prices but also
stubbornly high unemployment. The Paris bourse reacted well to the Chirac
victory as equities moved ahead on better prospects for growth within France and
a widening recovery in Europe.
In the other "hard currency" countries of Europe -- the NETHERLANDS,
SWITZERLAND, and BELGIUM -- the picture was similar. Uncertainties prevailed in
both the economy and the stock markets, but the exceptional strength of their
currencies led to double-digit returns for U.S. investors during the quarter. In
all these markets we can find quality growth companies that have performed well
even as currency strength put cyclical stocks in doubt.
2
<PAGE>
LATIN AMERICA
In Latin America, markets have delivered their usual seesaw performances with
Brazil and Mexico at the more volatile end of the spectrum. Sentiment is more
settled now in MEXICO, but it remains to be seen whether the Zedillo government
can tackle the longer-term problems. The peso stabilized at levels well above
the lows reached earlier in the year and this, combined with lower stock prices,
fueled a strong rally. BRAZIL'S economy is booming and stocks have performed
well as investors regained their confidence in President Cardoso's commitment to
economic reform. In ARGENTINA, Menem's reelection bodes well for stocks and a
continuation of necessary economic reforms there.
INVESTMENT POLICY & OUTLOOK
International stock markets have experienced a bumpy ride recently. A major
cause is the exceptional weakness of the U.S. dollar, which enhanced returns for
U.S. investors in foreign currency terms, but threatened economic recoveries
that have taken hold in Japan and Continental Europe.
As the quarter closed, the news was starting to look more encouraging.
First, there are distinct signs that U.S. economic growth is moderating, and
lower U.S. interest rates have quickly translated into better sentiment in
overseas capital markets. Second, currency exchange markets appear more settled,
which will be helpful for both governments and companies as they adjust their
dollar policies. Therefore, we remain confident in our outlook for moderating
international interest rates and for stronger corporate earnings abetted by
continuing economic recovery.
This combination bodes well for the established markets overseas, which
form the core of the fund's portfolio. However, the fund also holds small
positions in the less developed markets of the world, which have been buffeted
during a turbulent period. The outlook for these regions also seems brighter,
with continued high growth in the Pacific and economic reforms in Latin America
underpinning better prospects in coming months.
Your fund remains fully invested, further reinforcing our confident
outlook.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
President
May 19, 1995
3
<PAGE>
- --------------------------------------------------------------------------------
Industry Diversification
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Consumer Goods 31.4%
- --------------------------------------------------------------------------------
Capital Goods 15.5
- --------------------------------------------------------------------------------
Basic Industry 15.0
- --------------------------------------------------------------------------------
Financial/Insurance 14.8
- --------------------------------------------------------------------------------
Utilities 7.8
- --------------------------------------------------------------------------------
Energy 5.2
- --------------------------------------------------------------------------------
Transport/Storage 3.0
- --------------------------------------------------------------------------------
Short-Term Investments 8.9
- --------------------------------------------------------------------------------
Other Assets Less Liabilities -1.6
- --------------------------------------------------------------------------------
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 & Warrants 89.9% $4,955,709 $5,495,868
- --------------------------------------------------------------------------------
Preferred Stocks
& Warrants 2.7 154,586 166,090
- --------------------------------------------------------------------------------
Bonds 0.1 1,405 1,537
- --------------------------------------------------------------------------------
Short-Term
Investments 8.9 544,880 544,880
----- --------- ---------
Total Investments 101.6 5,656,580 6,208,375
- --------------------------------------------------------------------------------
Other Assets
Less Liabilities -1.6 -97,259 -96,326
- --------------------------------------------------------------------------------
Total Net Assets 100.0% $5,559,321 $6,112,049
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Average Annual Compound Total Returns
- --------------------------------------------------------------------------------
Periods Ended April 30, 1995
1 Year 5 Years 10 Years
------ ------- --------
1.9% 9.0% 17.8%
- --------------------------------------------------------------------------------
Note: For the calendar quarter ended 3/31/95, the fund's returns for the above
periods were 0.6%, 7.7%, and 17.3%, 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.
- --------------------------------------------------------------------------------
Twenty-Five Largest Holdings
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Wolters Kluwer, Netherlands 2.1%
- --------------------------------------------------------------------------------
Elsevier, Netherlands 1.8
- --------------------------------------------------------------------------------
Royal Dutch Petroleum, Netherlands 1.4
- --------------------------------------------------------------------------------
National Westminster Bank,
United Kingdom 1.2
- --------------------------------------------------------------------------------
Kyocera, Japan 1.1
- --------------------------------------------------------------------------------
Swire Pacific 'A', Hong Kong 1.0
- --------------------------------------------------------------------------------
Reed International, United Kingdom 1.0
- --------------------------------------------------------------------------------
Eaux Cie Generale, France 1.0
- --------------------------------------------------------------------------------
SmithKline Beecham, United Kingdom 1.0
- --------------------------------------------------------------------------------
BBC Brown Boveri & Cie, Switzerland 1.0
- --------------------------------------------------------------------------------
Telecomunicacoes Brasilias, Brazil 0.8
- --------------------------------------------------------------------------------
Telecom Italia, Italy 0.8
- --------------------------------------------------------------------------------
Nippon Denso, Japan 0.8
- --------------------------------------------------------------------------------
Roche Holdings, Switzerland 0.8
- --------------------------------------------------------------------------------
United Engineers, Malaysia 0.7
- --------------------------------------------------------------------------------
Sumitomo Electric, Japan 0.7
- --------------------------------------------------------------------------------
Polygram, Netherlands 0.7
- --------------------------------------------------------------------------------
Mitsubishi Heavy Industries, Japan 0.7
- --------------------------------------------------------------------------------
Nippon Steel, Japan 0.7
- --------------------------------------------------------------------------------
Nestle, Switzerland 0.7
- --------------------------------------------------------------------------------
Sharp, Japan 0.7
- --------------------------------------------------------------------------------
Norsk Hydro, Norway 0.7
- --------------------------------------------------------------------------------
Mitsui Fudosan, Japan 0.7
- --------------------------------------------------------------------------------
Matsushita Electric Industrial, Japan 0.6
- --------------------------------------------------------------------------------
Wharf Holdings, Hong Kong 0.6
- --------------------------------------------------------------------------------
Total 23.3%
- --------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
Statement of Net Assets
T. Rowe Price International Stock Fund / April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
- --------------------------------------------------------------------------------
ARGENTINA -- 0.8%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
---------
COMMON STOCKS
<C> <S> <C>
251,663 shs. Banco de Galicia Buenos
Aires 'B' ADR (USD)............................ $ 4,058
128,860 Banco Frances del Rio
de la Plata ADR (USD).......................... 2,368
227,020 Buenos Aires Embotelladora
'B' ADR (USD).................................. 6,243
79,819 Enron Global Power
& Pipeline (USD)............................... 1,926
1,208,284 Naviera Perez 'B'................................ 4,929
823,360 Sociedad Comercial del
Plata.......................................... 1,852
76,408 Sociedad Comercial del
Plata ADR (USD)................................ 1,757
496,000 Telecom Argentina Stet 'B'....................... 2,153
5,819 Telecom Argentina Stet 'B'
ADR (USD)...................................... 255
411,530 Telefonica de Argentina 'B'
ADR (USD)...................................... 9,671
117,840 Telefonica de Argentina 'B'
ADS (USD)...................................... 2,769
185,858 Transportadora de Gas del
Sur 'B' ADS (USD).............................. 1,835
507,163 YPF Sociedad Anonima
'D' ADR (USD).................................. 10,270
TOTAL ARGENTINA 50,086
<CAPTION>
- --------------------------------------------------------------------------------
AUSTRALIA -- 2.5%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
3,990,804 Australia Gas & Light............................ 13,062
6,730,630 Australian National
Industries..................................... 6,951
931,839 Broken Hill Proprietary.......................... 13,582
3,013,489 Burns Philp & Company............................ 7,627
970,079 Coca Cola Amatil................................. 5,927
478,000 Lend Lease Corporation........................... 6,105
1,747,357 MIM.............................................. 2,554
3,453,056 Mayne Nickless................................... 16,274
2,589,445 News Corporation................................. 12,581
2,431,850 Publishing & Broadcasting........................ 6,987
8,827,703 TNT.............................................. 12,649
3,015,000 Tabcorp Holdings................................. 6,908
2,541,057 Western Mining................................... 14,379
2,330,000 Woodside Petroleum............................... 9,541
2,475,991 Woolworths....................................... 5,385
140,512
<CAPTION>
PREFERRED STOCKS
<C> <S> <C>
1,303,722 shs. News Corporation................................. $ 5,756
4,617,000 TNT, Cum. Cv., 8.00%............................. 7,085
12,841
TOTAL AUSTRALIA 153,353
<CAPTION>
- --------------------------------------------------------------------------------
AUSTRIA -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
57,126 Flughafen Wien................................... 2,544
59,660 Oesterreichische
Elektrizitats.................................. 3,937
6,481
PREFERRED STOCK
43,844 Creditanstalt - Bankverein....................... 2,511
TOTAL AUSTRIA 8,992
<CAPTION>
- --------------------------------------------------------------------------------
BELGIUM -- 1.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
54,151 Fortis........................................... 5,580
39,531 Generale Banque.................................. 12,443
122,562 Kredietbank...................................... 30,415
1,221 Obourg Financiere................................ 1,331
36,265 UCB.............................................. 32,286
82,055
<CAPTION>
CORPORATE BOND
<C> <S> <C>
37,035,000 BEL Kredietbank, Cv.,
5.75%, 11/30/03............................... 1,246
TOTAL BELGIUM 83,301
<CAPTION>
- --------------------------------------------------------------------------------
BRAZIL -- 2.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
254,600 shs. Brazil Fund (USD)................................ 6,683
78,000 *Cia Energetica Minas
Gerais ADR (USD)............................... 1,833
171,890,000 Companhia Siderurgica
Nacional....................................... 4,370
37,089,553 Eletrobras....................................... 10,243
166,493,000 Telecomunicacoes
Brasilias...................................... 4,983
64,253 Usiminas ADR (USD)............................... 771
28,883
<CAPTION>
PREFERRED STOCKS & WARRANTS
<C> <S> <C>
1,495,415,701 Banco Bradesco................................... 11,488
11,295,000 Banco Itau....................................... 3,033
21,066,000 Brahma........................................... 6,118
1,827,222 wts.*Brahma, 9/30/96.................................. 60
19,947,000 shs. Brasmotor........................................ 5,399
</TABLE>
5
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Stock Fund / Statement of Net Assets Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
BRAZIL (cont'd)
- -------------------------------------------------------------------------------
<C> <S> <C>
17,859,000 shs. Cia Cimento Portland Itau........................ $ 5,676
156,300 *Cia Energetica de
Sao Paulo ADS (USD)............................ 1,836
250,937,500 Cia Energetica Minas
Gerais......................................... 5,882
13,940,000 Cia Tecidos Norte de
Minas.......................................... 3,682
196,273,000 Lojas Americanas................................. 4,302
40,258,000 Petrol Brasileiros............................... 3,750
236,993,267 Telecomunicacoes
Brasilias...................................... 8,493
1,044,272 Telecomunicacoes Brasilias
ADR (USD)...................................... 37,333
49,729,458 Telecomunicacoes de
Sao Paulo...................................... 6,268
10,623,600,000 Usiminas......................................... 12,923
116,243
TOTAL BRAZIL 145,126
<CAPTION>
- --------------------------------------------------------------------------------
CANADA -- 0.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
505,440 Alcan Aluminium.................................. 14,313
310,220 MacMillan Bloedel................................ 4,050
227,590 Royal Bank of Canada............................. 5,001
TOTAL CANADA 23,364
<CAPTION>
- --------------------------------------------------------------------------------
CHILE -- 0.5%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
319,638 Chile Fund (USD)................................. 15,143
120,356 Chilectra ADR (USD).............................. 6,108
140,239 Compania Cervecerias
Unidas ADS (USD)............................... 3,331
66,834 Compania de Telefonos
de Chile 'A' ADR (USD)......................... 4,620
102,796 Empresa Nacional de
Electricidad ADS (USD)......................... 2,544
TOTAL CHILE 31,746
<CAPTION>
- --------------------------------------------------------------------------------
CHINA -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
17,506,000 Shanghai Petrochemical
'H' (HKD)...................................... 5,032
31,441,000 Yizheng Chemical Fibre
'H' (HKD)...................................... 10,458
TOTAL CHINA 15,490
<CAPTION>
- --------------------------------------------------------------------------------
DENMARK -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
118,240 shs. Den Danske Bank.................................. $ 7,104
60,017 Tele Danmark 'B'................................. 3,132
146,749 Unidanmark 'A'................................... 6,713
TOTAL DENMARK 16,949
<CAPTION>
- --------------------------------------------------------------------------------
FINLAND -- 0.2%
- --------------------------------------------------------------------------------
PREFERRED STOCK
<C> <S> <C>
268,112 Nokia Oy 'A'..................................... 10,949
<CAPTION>
- --------------------------------------------------------------------------------
FRANCE -- 7.8%
- --------------------------------------------------------------------------------
COMMON STOCKS, RIGHTS & WARRANTS
<C> <S> <C>
163,018 Accor............................................ 18,710
87,700 Assurances Generales
de France...................................... 2,902
326 Burelle.......................................... 24
181,220 CMB Packaging.................................... 6,432
74,050 Carrefour........................................ 37,146
67,715 Chargeurs........................................ 13,504
52,230 rts.*Chargeurs........................................ 1,029
299,868 shs. Cie de St. Gobain................................ 38,811
584,122 Eaux Cie Generale................................ 61,574
149,442 Ecco............................................. 20,437
1,010 Ecco Travail Temporaire.......................... 67
297,425 Elf Aquitaine.................................... 23,769
93,050 GTM Entrepose.................................... 7,801
31,371 L'Oreal.......................................... 8,261
160,762 LVMH............................................. 30,589
231,198 Lafarge-Coppee................................... 18,020
212,150 Lapeyre.......................................... 13,927
11,410 Legrand.......................................... 16,532
88,660 Peugeot.......................................... 12,792
85,668 Pinault Printemps................................ 19,386
190,110 Poliet........................................... 16,829
21,397 Primagaz......................................... 4,015
5,837 wts.*Primagaz, 6/30/95................................ 56
22,850 shs. Rexel............................................ 3,766
53,330 Societe Generale de
France......................................... 5,860
19,490 Sodexho.......................................... 3,677
371,766 Television Francaise............................. 33,969
339,780 Total 'B'........................................ 21,241
648,880 Valeo............................................ 36,973
TOTAL FRANCE 478,099
<CAPTION>
- --------------------------------------------------------------------------------
GERMANY -- 4.2%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
<C> <S> <C>
15,178 Allianz Holdings................................. 27,930
3,000 wts.*Allianz Holdings, 3/29/96........................ 2,646
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
14,228 shs. Ava Allgemeine Handels -
Der Verbr...................................... $ 5,337
84,593 Bayer............................................ 20,808
14,131 Bayerische Motoren
Werke.......................................... 7,227
25,925 Bilfinger & Berger............................... 12,081
11,140 Buderus.......................................... 6,003
37,050 Deutsche Bank.................................... 18,131
72,038 Gehe............................................. 30,971
56,733 Hoechst.......................................... 12,134
6,389 Hornbach......................................... 4,037
107,306 Mannesmann....................................... 29,104
18,212 Rhon Klinikum.................................... 17,341
33,021 Schering......................................... 24,701
58,698 wts.*Veba, 4/6/98..................................... 6,944
39,756 shs. Volkswagen....................................... 11,012
236,407
<CAPTION>
PREFERRED STOCKS
<C> <S> <C>
112,893 *Fielmann......................................... 74,617
10,183 Hornbach......................................... 12,201
11,627 Krones........................................... 5,535
22,353
TOTAL GERMANY 258,760
<CAPTION>
- --------------------------------------------------------------------------------
HONG KONG -- 2.9%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
8,300,200 Great Eagle Holdings............................. 14,904
10,401,870 Hong Kong Land
Holdings (USD)................................. 19,556
9,690,965 Hopewell Holdings................................ 6,885
7,244,000 Hutchison Whampoa................................ 31,443
9,571,500 Swire Pacific 'A'................................ 63,987
13,100,000 Wharf Holdings................................... 39,261
TOTAL HONG KONG 176,036
<CAPTION>
- --------------------------------------------------------------------------------
ITALY -- 2.2%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
<C> <S> <C>
3,797 Alleanza Assicurazioni........................... 34
1,078,739 Assicurazioni Generali........................... 25,990
6,986,087 Banca Fideuram................................... 8,478
655,800 Danieli & Company,
savings shares................................. 2,112
101,700 wts.*Danieli & Company,
11/30/99....................................... 82
406,527 shs. Imi.............................................. 2,484
2,564,000 Istituto Naz Delle
Assicurazioni.................................. 3,456
1,278,270 Italgas.......................................... 3,369
170,230 RAS.............................................. 1,797
745,400 Rinascente....................................... 4,127
1,975,200 SME.............................................. 4,718
1,764,605 Sasib, savings shares............................ 3,994
5,970,680 Stet............................................. 17,020
2,243,805 Stet, savings shares............................. 5,152
11,084,592 Telecom Italia................................... 29,582
8,972,194 Telecom Italia, savings
shares......................................... 18,727
131,122
<CAPTION>
- --------------------------------------------------------------------------------
CORPORATE BOND
<C> <S> <C>
610,200,000 ITL Danieli & Company,
7.50%, 1/1/00.................................. 291
TOTAL ITALY 131,413
<CAPTION>
- --------------------------------------------------------------------------------
JAPAN -- 23.2%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
372,000 shs. Advantest........................................... 12,041
1,212,000 Alps Electric....................................... 13,990
2,354,000 Amada............................................... 25,155
100,000 Aoyama Trading...................................... 1,940
2,351,000 Canon............................................... 38,887
1,295,000 Citizen Watch....................................... 9,292
1,623 DDI................................................. 14,292
1,862,000 Dai Nippon Screen
Manufacturing..................................... 12,076
512,000 Daifuku............................................. 6,702
2,157,000 Daiichi Pharmaceutical.............................. 34,908
2,107,000 Daiwa House......................................... 35,102
5,752 East Japan Railway.................................. 29,912
494,000 Fanuc............................................... 22,338
3,626,000 Hitachi............................................. 36,892
2,264,000 Hitachi Zosen....................................... 10,857
883,000 Honda Motor......................................... 14,290
1,209,000 Inax................................................ 12,934
1,347,000 Ishihara Sangyo Kaisha.............................. 5,338
686,000 Ito-Yokado.......................................... 36,980
435,000 Kawada Industries................................... 4,167
903,000 Kokuyo.............................................. 23,210
3,432,000 Komatsu............................................. 27,281
837,000 Komori.............................................. 20,817
2,315,000 Kumagai Gumi........................................ 12,892
2,260,000 Kuraray............................................. 26,867
882,000 Kyocera............................................. 68,222
1,566,000 Makita.............................................. 24,226
1,503,000 Marui............................................... 23,072
2,353,000 Matsushita Electric Industrial...................... 39,480
1,372,000 Mitsubishi.......................................... 17,306
6,174,000 Mitsubishi Heavy Industries......................... 44,816
1,676,000 Mitsubishi Paper Mills.............................. 12,106
3,432,000 Mitsui Fudosan...................................... 39,942
1,123,000 Mitsui Petrochemical Industries..................... 10,637
</TABLE>
7
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Stock Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
JAPAN (cont'd)
- --------------------------------------------------------------------------------
<C> <S> <C>
647,000 shs. Murata Manufacturing............................. $ 26,023
2,726,000 NEC.............................................. 30,168
480,000 National House................................... 9,824
2,351,000 Nippon Denso..................................... 47,280
642,000 Nippon Hodo...................................... 11,154
10,843,000 Nippon Steel..................................... 43,096
287,000 Nomura Securities................................ 5,806
1,275,000 Pioneer Electronic............................... 26,855
272,000 Sangetsu......................................... 8,027
1,039,500 Sankyo........................................... 24,987
213,250 Sega Enterprises................................. 9,795
2,692,000 Sekisui Chemical................................. 33,636
1,909,000 Sekisui House.................................... 25,216
265,100 Seven-Eleven Japan............................... 19,086
2,546,000 Sharp............................................ 41,810
835,000 Shinetsu Chemical................................ 16,196
667,300 Sony............................................. 33,669
3,920,000 Sumitomo......................................... 38,950
3,331,000 Sumitomo Electric................................ 45,188
1,179,000 Sumitomo Forestry................................ 20,905
627,000 TDK.............................................. 28,651
242,000 Taisho Pharmaceutical............................ 4,521
4,030,000 Teijin........................................... 22,731
1,246,000 Tokio Marine & Fire
Insurance...................................... 14,827
643,000 Tokyo Electronics................................ 20,047
748,000 Tokyo Steel Manufacturing........................ 15,666
832,000 Toppan Printing.................................. 12,079
517,000 Yurtec........................................... 11,443
TOTAL JAPAN 1,416,603
<CAPTION>
MALAYSIA -- 2.7%
COMMON STOCKS & WARRANTS
<C> <S> <C>
17,651,000 Affin Holdings...................................... 24,706
3,530,200 wts.*Affin Holdings, 8/22/99............................. 1,775
3,755,400 shs. Aokam Perdana....................................... 16,863
6,879,000 Berjaya Sports Toto................................. 9,294
1,510,666 wts.*Commerce Asset Holdings, 6/27/98.................... 2,811
14,385,000 shs. Renong.............................................. 21,997
1,685,000 Resorts World....................................... 8,861
13,935,000 Technology Resources Industries..................... 35,514
7,898,000 United Engineers.................................... 45,369
TOTAL MALAYSIA 167,190
<CAPTION>
- --------------------------------------------------------------------------------
MEXICO -- 1.8%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
1,514,044 shs. Cemex 'B'........................................ $ 4,820
14,621,781 Cifra 'B' ADR (USD).............................. 21,640
1,494,875 Cifra 'C'........................................ 2,064
1,129,159 Gruma 'B'........................................ 3,786
1,451,730 *Grupo Embotellador
de Mexico PC................................... 7,759
755,256 Grupo Financiero
Banamex 'C'.................................... 1,253
72,250 Grupo Financiero Bancomer
'C' GDS (USD).................................. 433
6,373,007 Grupo Industrial
Maseca 'B'..................................... 5,141
1,987,979 *Grupo Sidek 'B'.................................. 1,940
530,215 Grupo Televisa PC GDS
(USD).......................................... 10,604
261,854 Panamerican Beverages
'A' (USD)...................................... 6,841
1,186,343 Telefonos de Mexico
'L' ADS (USD).................................. 35,887
2,711,488 Tolmex 'B2'...................................... 9,001
TOTAL MEXICO 111,169
<CAPTION>
- --------------------------------------------------------------------------------
NETHERLANDS -- 9.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
455,451 ABN Amro Holdings................................ 17,519
357,952 Ahold............................................ 12,315
186,019 Akzo Nobel....................................... 21,573
758,521 CSM.............................................. 34,747
9,931,447 Elsevier......................................... 108,778
302,985 Fortis AMEV...................................... 16,007
76,850 Hagemeyer........................................ 6,635
673,314 Internationale Nederlanden
Groep.......................................... 35,486
370,534 Koninklijke PTT
Nederland...................................... 12,915
114,718 Nutricia......................................... 7,007
799,649 Polygram......................................... 45,132
683,013 Royal Dutch Petroleum............................ 84,271
259,854 Unilever......................................... 34,773
1,608,688 Wolters Kluwer................................... 130,905
568,063
<CAPTION>
PREFERRED STOCK
<C> <S> <C>
70,540 Internationale Nederlanden
Groep.......................................... 350
TOTAL NETHERLANDS 568,413
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
NEW ZEALAND -- 1.5%
COMMON STOCKS
<C> <S> <C>
5,021,864 shs. Air New Zealand 'B'.............................. $ 16,870
3,216,149 Carter Holt Harvey............................... 8,168
1,418,577 Fernz............................................ 5,242
9,943,921 Fletcher Challenge............................... 26,724
5,827,939 Fletcher Challenge,
Forests Division............................... 8,144
1,035,375 Independent Newspapers........................... 3,756
5,892,628 Telecom Corporation
of New Zealand................................. 24,744
TOTAL NEW ZEALAND 93,648
<CAPTION>
- --------------------------------------------------------------------------------
NORWAY -- 1.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
198,750 Bergesen 'A'..................................... 4,339
231,631 Kvaerner 'A'..................................... 10,596
995,586 Norsk Hydro...................................... 40,591
666,506 Orkla 'A'........................................ 28,618
219,720 Saga Petroleum 'B'............................... 3,015
TOTAL NORWAY 87,159
<CAPTION>
- --------------------------------------------------------------------------------
PERU -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCK
<C> <S> <C>
1,033,003 Telefonica de Peru 'B'........................... 1,731
<CAPTION>
- --------------------------------------------------------------------------------
PORTUGAL -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
<C> <S> <C>
317,668 Jeronimo Martins................................. 16,204
25,000 Portugal Fund IDR (USD).......................... 109
TOTAL PORTUGAL 16,313
<CAPTION>
- --------------------------------------------------------------------------------
SINGAPORE -- 2.3%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
<C> <S> <C>
3,932,000 DBS Land......................................... 10,835
1,355,000 Far East Levingston
Shipbuilding................................... 5,931
1,578,000 Jurong Shipyard.................................. 12,117
803,000 Keppel........................................... 6,512
3,831,000 Neptune Orient Lines............................. 4,399
1,005,000 Overseas Union Bank.............................. 5,806
1,800,000 Overseas Union
Enterprises.................................... 10,463
1,823,000 Sembawang........................................ 12,493
1,511,000 Singapore Airlines............................... 14,530
2,512,000 Singapore Land................................... 16,224
682,200 Singapore Press.................................. 11,749
6,777,000 United Industrial................................ 6,322
2,218,462 United Overseas Bank............................. 23,084
697,623 wts.*United Overseas Bank,
6/17/97........................................ 3,655
TOTAL SINGAPORE 144,120
<CAPTION>
- --------------------------------------------------------------------------------
SOUTH KOREA -- 0.8%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS
84,804 shs. Hanil Securities................................. 1,046
134,000 Korea Electric Power............................. 5,051
151,600 Pohang Iron & Steel.............................. 15,654
8,214 Samsung Electronics.............................. 1,452
394,510 Samsung Electronics
GDS (USD)...................................... 19,627
75,880 Yukong........................................... 3,499
TOTAL SOUTH KOREA 46,329
<CAPTION>
- --------------------------------------------------------------------------------
SPAIN -- 2.0%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS
64,333 Banco Popular Espanol............................ 8,789
330,830 Banco Santander.................................. 12,078
1,000,253 Centros Comerciales
Pryca.......................................... 17,710
611,422 Empresa Nacional de
Electricidad................................... 28,901
104,785 Fomento de Construcciones
y Contra....................................... 9,617
156,662 Gas Natural...................................... 15,650
827,615 Repsol........................................... 26,349
38,000 Repsol ADR (USD)................................. 1,211
TOTAL SPAIN 120,305
<CAPTION>
- --------------------------------------------------------------------------------
SWEDEN -- 2.1%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS
145,220 Asea 'A'......................................... 12,253
1,333,648 Astra 'B'........................................ 37,998
831,988 Atlas Copco 'B'.................................. 11,451
460,713 Electrolux 'B'................................... 23,526
173,520 Esselte 'B'...................................... 2,269
186,399 Hennes & Mauritz 'B'............................. 12,597
175,000 Sandvik 'A'...................................... 3,264
851,190 Sandvik 'B'...................................... 15,816
91,820 Scribona 'B'..................................... 689
120,160 Stora Kopparberg 'B'............................. 8,071
TOTAL SWEDEN 127,934
<CAPTION>
- --------------------------------------------------------------------------------
SWITZERLAND -- 3.7%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS
59,649 BBC Brown Boveri & Cie........................... 58,848
29,557 CS Holdings...................................... 12,350
18,842 Ciba Geigy....................................... 12,885
42,856 Nestle........................................... 41,832
7,835 Roche Holdings................................... 47,055
</TABLE>
9
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Stock Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SWITZERLAND (cont'd)
- --------------------------------------------------------------------------------
<C> <S> <C>
36,085 shs. Sandoz........................................... $ 23,576
12,393 Schweizerische
Bankgesellschaft............................... 11,394
59,713 Schweizerischer
Bankverein..................................... 19,637
TOTAL SWITZERLAND 227,577
<CAPTION>
- --------------------------------------------------------------------------------
THAILAND -- 1.2%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS
399,576 Advanced Information
Service Public................................. 5,881
1,214,103 Bangkok Bank Public.............................. 11,749
2,600,273 Bank of Ayudhya.................................. 11,630
224,000 Land & House..................................... 3,953
185,000 Shinawatra Computer
& Communication................................ 4,137
222,285 Siam Cement...................................... 12,779
876,733 Siam Commercial Bank............................. 7,415
1,306,094 Thai Farmers Bank................................ 11,470
422,996 United Communications
Industry....................................... 6,191
TOTAL THAILAND 75,205
<CAPTION>
- --------------------------------------------------------------------------------
UNITED KINGDOM -- 14.3%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS
5,010,700 Abbey National................................... 37,415
3,065,980 Argos............................................ 20,032
4,358,920 Argyll Group..................................... 20,088
12,907,000 Asda Group....................................... 16,928
823,180 BAA.............................................. 6,286
3,295,040 British Gas...................................... 15,961
1,954,500 British Petroleum................................ 14,091
5,027,050 Cable & Wireless................................. 32,359
4,149,553 Cadbury Schweppes................................ 29,916
8,342,821 Caradon.......................................... 33,162
3,578,410 Clyde Petroleum.................................. 2,707
2,707,210 Coats Viyella.................................... 8,866
1,861,560 David S. Smith................................... 16,626
1,980,864 East Midlands Electricity........................ 20,880
673,210 Eastern Group.................................... 6,869
1,345,000 First National Finance........................... 1,623
3,091,710 Glaxo............................................ 36,569
5,511,480 Grand Metropolitan............................... 35,389
4,543,000 Guinness......................................... 34,361
642,000 Heath............................................ 2,480
1,034,875 Heywood Williams Group........................... 4,122
2,471,000 Hillsdown Holdings............................... 7,317
2,112,000 John Laing 'A'................................... 6,865
3,765,098 Kingfisher....................................... 27,023
3,929,940 Ladbroke Group................................... 11,257
2,641,640 London Electricity............................... 26,995
8,126,780 National Westminster
Bank........................................... 70,884
2,097,000 * Polly Peck International......................... 0
2,216,900 RTZ.............................................. 28,113
4,095,825 Rank Organisation................................ 28,013
4,870,430 Reed International............................... 62,703
2,034,666 Rolls Royce...................................... 5,583
2,390,000 Sears............................................ 4,000
3,265,500 Shell Transport & Trading........................ 38,625
7,742,740 Smithkline Beecham,
equity units................................... 59,559
652,630 South Western Electricity........................ 6,953
817,666 Spring Ram....................................... 526
5,116,000 T & N............................................ 12,349
3,693,395 Tesco............................................ 16,583
10,275,430 Tomkins.......................................... 38,529
3,336,430 United Newspapers................................ 26,685
875,292
PREFERRED STOCK
400,000 First National Finance,
Cum. Cv., 7.00%................................ 843
TOTAL UNITED KINGDOM 876,135
<CAPTION>
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.9%
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER
$20,000,000 ANZ (Delaware),
6.00%, 8/1/95.................................. 19,680
4,200,000 AON, 6.02%, 5/22/95.............................. 4,156
15,000,000 American Home
Products Corporation,
6.02%, 7/24/95................................. 14,777
21,200,000 Asset Securitization
Cooperative,
6.02%, 6/19/95................................. 20,977
37,914,000 Associates Corporation,
5.92%, 5/1/95.................................. 37,782
20,000,000 B.B.V. Finance Delaware,
6.05%, 5/9/95.................................. 19,792
37,750,000 BHF Finance (Delaware),
6.00% - 6.01% , 5/31/95 -
7/18/95........................................ 37,319
17,000,000 BMW U.S. Capital, 6.00% -
6.03%, 5/22/95 - 7/24/95....................... 16,768
5,000,000 Bank of Nova Scotia
(London Branch),
6.12%, 5/8/95.................................. 5,000
10,500,000 Barnett Banks Incorporated,
6.03%, 5/10/95................................. 10,449
25,000,000 Bayerische Hypotheken-Und
Wechsel Bank,
6.05%, 5/5/95.................................. 25,001
</TABLE>
10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
$24,835,000 Cheltenham & Glouster
Building, 6.05%, 6/27/95....................... $ 24,464
7,800,000 Ciba-Geigy, 6.00% - 6.02%,
5/22/95 - 7/24/95.............................. 7,696
10,000,000 Citizens Utility Company,
6.05%, 5/19/95................................. 9,876
25,000,000 Commonwealth Bank of
Australia, 6.02%, 5/15/95...................... 24,749
15,000,000 Du Pont (EI) De Nemours,
6.02%, 5/25/95................................. 14,822
8,000,000 Dun & Bradstreet,
6.20%, 5/2/95.................................. 7,858
25,000,000 First National Bank
Chicago, 6.18%, 6/15/95........................ 25,002
15,000,000 First Union Corporation,
6.08%, 5/10/95................................. 14,769
10,000,000 Hanson Finance (U.K.),
6.125%, 5/15/95................................ 9,845
10,000,000 Kredietbank North America,
6.01%, 7/10/95................................. 9,863
20,000,000 New South Wales Treasury,
6.00%, 5/8/95.................................. 19,890
4,725,000 Preferred Receivables
Funding, 6.00%, 5/16/95........................ 4,699
108,000 President & Fellows Harvard College,
5.93%, 5/1/95.................................. 108
11,000,000 RTZ America, 6.00%,
7/26/95........................................ 10,833
17,000,000 Societe Generale New York,
6.06%, 6/5/95.................................. 17,000
34,000,000 Southwestern Bell Capital
Corporation, 6.08% - 6.09%,
5/4/95......................................... 33,515
10,000,000 U.S. Bancorp, 6.05%,
6/12/95........................................ 9,854
32,300,000 UBS Finance (Delaware),
5.93%, 5/1/95.................................. 32,284
7,043,000 Yale University, 6.05%,
6/19/95........................................ 6,935
495,763
OTHER
2,201,000 AT&T, Floating Rate
Medium-Term Note,
6.3125%, 5/4/95................................ 2,201
25,000,000 Avco Financial Services,
Floating Rate Medium-
Term Note, 6.08168%,
12/21/95....................................... 25,000
7,000,000 Commerzbank, AG,
Floating Rate Medium-
Term Note, 6.20%,
6/7/95......................................... 7,001
15,000,000 SBNSW (Delaware), Floating
Rate Medium-Term
Note, 6.00%, 5/9/95............................ 14,915
49,117
TOTAL SHORT-TERM INVESTMENTS 544,880
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 101.6%
OF NET ASSETS (COST $5,656,580) $6,208,375
OTHER ASSETS LESS LIABILITIES.................... (96,326)
----------
</TABLE>
<TABLE>
<CAPTION>
NET ASSETS CONSIST OF: Value
-----
<S> <C> <C>
Accumulated net investment
income - net of distributions.................. $ 32,562
Accumulated net realized gain/loss -
net of distributions........................... 14,692
Net unrealized gain (loss)....................... 552,728
Paid-in-capital applicable to
524,584,027 shares of $0.01 par
value capital stock outstanding;
2,000,000,000 shares of the
Corporation authorized......................... 5,512,067
---------
NET ASSETS....................................... $6,112,049
==========
NET ASSET VALUE PER SHARE........................ $11.65
======
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing
(BEL) Belgian franc
(HKD) Hong Kong dollar
(ITL) Italian lira
(USD) U.S. dollar
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
T. Rowe Price International Stock Fund / Six Months Ended April 30, 1995
(Unaudited)
(in thousands)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividend (net of foreign taxes of $7,607)....................... $ 49,922
Interest........................................................ 12,426
---------
Total income.................................................... 62,348
---------
Expenses
Investment management........................................... 19,810
Shareholder servicing........................................... 4,526
Custody and accounting.......................................... 1,343
Prospectus and shareholder reports.............................. 322
Proxy and annual meeting........................................ 234
Registration.................................................... 229
Legal and audit................................................. 23
Directors....................................................... 23
Miscellaneous................................................... 16
---------
Total expenses.................................................. 26,526
---------
Net investment income............................................. 35,822
---------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities...................................................... 20,393
Foreign currency transactions................................... (4,527)
---------
Net realized gain (loss)........................................ 15,866
---------
Change in net unrealized gain or loss on:
Securities...................................................... (258,508)
Other assets and liabilities denominated in foreign currencies.. 4,619
---------
Change in net unrealized gain or loss........................... (253,889)
---------
Net realized and unrealized gain (loss)........................... (238,023)
---------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS................. $(202,201)
---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
T. Rowe Price International 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................................... $ 35,822 $ 56,402
Net realized gain (loss)................................ 15,866 302,445
Change in net unrealized gain or loss................... (253,889) 180,097
---------- ----------
Increase (decrease) in net assets from operations....... (202,201) 538,944
---------- ----------
Distributions to shareholders
Net investment income................................... (57,810) (31,352)
Net realized gain....................................... (298,432) (67,269)
---------- ----------
Decrease in net assets from distributions............... (356,242) (98,621)
---------- ----------
Capital share transactions*
Shares sold............................................. 901,557 2,767,911
Distributions reinvested................................ 331,094 90,880
Shares redeemed......................................... (767,872) (839,456)
---------- ----------
Increase (decrease) in net assets from capital share
transactions........................................... 464,779 2,019,335
---------- ----------
Increase (decrease) in net assets......................... (93,664) 2,459,658
NET ASSETS
Beginning of period....................................... 6,205,713 3,746,055
---------- ----------
End of period............................................. $6,112,049 $6,205,713
========== ==========
- --------------------------------------------------------------------------------------------
*Share information
Shares sold............................................. 79,273 225,584
Distributions reinvested................................ 29,562 7,630
Shares redeemed......................................... (67,561) (68,902)
---------- ----------
Increase (decrease) in shares outstanding............... 41,274 164,312
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price International 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 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.
13
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
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
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks and enhance performance. The
investment objective, policies, program, risk factors, and following
practices of the fund are described more fully in the fund's Prospectus and
Statement of Additional Information.
A) Emerging Markets - At April 30, 1995, the fund held 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) Securities Lending - To earn additional income, the fund lends its
securities to approved brokers. At April 30, 1995, the market value of
securities on loan was $35,494,000, for which the fund had received cash
collateral of $37,782,000. Although the risk is mitigated by the collateral,
the fund could experience a delay in recovering its securities and a possible
loss of income or value if the borrower fails to return them.
C) Other - Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $585,588,000 and $502,222,000,
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 $5,656,580,000 and net unrealized
gain aggregated $551,795,000, of which $830,386,000 related to appreciated
investments and $278,591,000 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
$3,396,000 was payable at April 30, 1995. The fee is computed daily and paid
monthly, and consists of an Individual Fund Fee equal to 0.35% 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. 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.
14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. Additionally, 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 among 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. The
fund incurred expenses pursuant to these related party agreements totaling
approximately $3,836,000 for the six months ended April 30, 1995, of which
$813,000 was payable at period-end.
During the six months ended April 30, 1995, the fund, in the ordinary
course of business, paid commissions of $395,000 to, and placed security
purchase and sale orders aggregating $128,108,000 with, certain affiliates of
the Manager in connection with the execution of various portfolio
transactions.
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
T. Rowe Price International Stock Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
----------------------------------------------------------------------
Six Months Year Ten Months Year ended December 31,
Ended Ended Ended -------------------------------
April 30, October 31, October 31,
1995 1994 1993* 1992 1991 1990
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............ $12.84 $11.74 $ 8.89 $ 9.54 $ 8.81 $10.24
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income.......... 0.07 0.09 0.10 0.14 0.15 0.22
Net realized and unrealized
gain (loss).................. (0.52) 1.30 2.75 (0.47) 1.22 (1.13)
------ ------ ------ ------ ------ ------
Total from Investment Activities. (0.45) 1.39 2.85 (0.33) 1.37 (0.91)
------ ------ ------ ------ ------ ------
Distributions
Net investment income.......... (0.12) (0.09) -- (0.16) (0.15) (0.16)
Net realized gain.............. (0.62) (0.20) -- (0.16) (0.49) (0.36)
------ ------ ------ ------ ------ ------
Total Distributions.............. (0.74) (0.29) -- (0.32) (0.64) (0.52)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD... $11.65 $12.84 $11.74 $ 8.89 $ 9.54 $ 8.81
====== ====== ====== ====== ====== ======
- -----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Total Return..................... (3.3)% 12.0% 32.1% (3.5)% 15.9% (8.9)%
Ratio of Expenses to Average
Net Assets..................... 0.93%+ 0.96% 1.01%+ 1.05% 1.10% 1.09%
Ratio of Net Investment Income to
Average Net Assets............. 1.25%+ 1.11% 1.52%+ 1.49% 1.51% 2.16%
Portfolio Turnover Rate.......... 18.5%+ 22.9% 29.8%+ 37.8% 45.0% 47.1%
Net Assets, End of Period
(in thousands)................. $6,112,049 $6,205,713 $3,746,055 $1,949,631 $1,476,309 $1,030,848
- -----------------------------------------------------------------------------------------------------------
</TABLE>
* The fund's fiscal year-end was changed to October 31.
+ Annualized.
15
<PAGE>
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
T. ROWE PRICE
- -------------
INTERNATIONAL 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
International Stock Fund/(R)/.
T. ROWE PRICE
Invest With Confidence/(R)/
ISF
