Semiannual Report
Global
Stock Fund
April 30, 1997
T. Rowe Price
Report Highlights
o European, U.S., and Latin American stocks posted robust
returns during the past six months, but a strong dollar
dampened returns for U.S. investors in many foreign
markets.
o The fund's U.S. holdings, underweighting in Japan, and
exposure to Latin America enabled it to surpass its
benchmarks with a strong 8.3% return for the last six
months.
o Stock selection also contributed to positive performance,
with most major holdings concentrated in the U.S. and major
European markets.
o Signs are emerging that Japan has seen its worst, and we
have begun to increase our purchases of select Japanese
stocks.
o The fund is well diversified by country and stock exposure,
providing a balance between established markets and several
less-developed regions with growth potential.
Fellow Shareholders
Most global stock markets continued strong over the last six
months, with Japan and several Far East countries notable
exceptions. U.S. stocks posted significant returns and
constituted the best-performing large market. European markets
were powerful in local currency terms, but returns for U.S.
investors were curtailed by a robust dollar.
Performance Comparison
Periods Ended 4/30/97 6 Months 12 Months
_________________________________________________________
Global Stock Fund 8.26% 12.83%
MSCI World Index 7.79 10.83
Lipper Global Funds Average 6.83 8.81
For the six months ended April 30, 1997, your fund registered a
total return of 8.26%, exceeding the 7.79% of the MSCI World
Index and 6.83% of the Lipper Global Funds Average. Fund
performance was greatly helped versus the index by an
overweighting in Latin America, which is not included in the
index, and an underweighting in Japan. The fund's return would
have been stronger were it not for its relatively low exposure
to the powerful U.S. market. Over the 12-month period, the
fund's results were also well ahead of both the index and the
Lipper average.
INVESTMENT REVIEW
United States
The U.S. market continued to thread the eye of the needle as the
combination of a stronger-than-expected economy coupled with
benign inflation resulted in above-normal returns. For the six
months ended April 30, U.S. stocks returned 15.74% (see table on
page 2), although our U.S. holdings slightly surpassed this
figure.
The movement in U.S. equities continued to be driven by earnings
growth and an expansion of the price/earnings multiple investors
are willing to pay for a given level of earnings. This was
particularly true of larger stocks; in the first four months of
1997, the average stock return measured by the Value Line
Composite Index was virtually unchanged while the S&P 100 Index
was up 9.13%.
Your fund's portfolio favored larger-cap stocks, with Microsoft,
Intel, Freddie Mac, GE, Warner-Lambert, and Philip Morris making
strong contributions to performance. Inhibiting returns were
significant declines in Corporate Express, Ikon Office
Solutions, and 3Com. We added to these holdings as their stock
prices corrected, since we still believe they offer significant
growth potential.
We also initiated several new positions, emphasizing our desire
for growth stocks at what we consider to be reasonable
valuations. Additions included Mattel, Service Corp
International, Lucent Technologies, Synopsys, Parametric
Technology, and Citicorp. All are well-managed companies with,
in our view, great potential through the growth of their
respective markets, the introduction of new products, or the
intelligent use of cash flow.
Market Performance
Six Months Local Local Currency U.S.
Ended 4/30/97 Currency vs. U.S. Dollars Dollars
__________________________________________________________
France 23.74% -12.48% 8.30%
Germany 28.30 -12.62 12.11
Hong Kong -0.04 -0.18 -0.22
Italy 25.88 -11.42 11.50
Japan -3.19 -10.38 -13.23
Mexico 16.85 0.25 17.13
Netherlands 31.15 -12.95 14.17
Norway 25.56 -10.47 12.42
Switzerland 31.05 -14.57 11.95
United Kingdom 13.06 -0.36 12.66
United States 15.74 - 15.74
Source: FAME Information Services, Inc.; based on MSCI indices.
While the prices of U.S. stocks remain relatively high by many
measures, this fact has not tempered investor appetite for them.
However, we still believe the current valuations of large U.S.
growth stocks contain enough risk to more than offset the
potential earnings growth of most companies. In addition, we
expect the current pace of the economy to slow somewhat, putting
earnings at risk later in the year. For this reason, we are
likely to remain underweighted in the U.S. market in the months
ahead.
Europe
The stock markets of Europe were also in solid shape during the
past six months. Several got off to a strong start this year,
although returns to U.S. investors were moderated by the
strength of the dollar. The core Continental European economies
are struggling at the moment, but looser monetary policies and
weakening currencies should help them recover.
In Germany a combination of low growth and high labor costs
boosted unemployment to record levels. This in turn has raised
questions as to whether the fiscal deficit can meet the
Maastricht criteria, but Germany seems as committed as ever to
European Monetary Union and a single currency. Despite the dull
economy, the stock market has been strong, led by financials
such as Deutsche Bank and manufacturers such as Volkswagen; the
latter has been helped by a weaker deutschemark and the growing
focus on shareholder value.
In France the picture was similar with the economy subdued,
unemployment remaining stubbornly high, and consumer sentiment
depressed. Despite these difficulties, the government also
remains committed to a single currency but it will prove
difficult to stimulate the economy without breaching the
Maastricht guidelines for economic convergence. Looking for a
firmer political base as the country approaches this important
transition, President Chirac recently called a general election.
At present it looks as though a right-of-center government will
be returned, but the majority may not be as high as Mr. Chirac's
original expectations. Given these uncertainties, the stock
market has been dull but core holdings such as the supermarket
chain Carrefour and conglomerate Eaux Cie Generale have been
able to make further progress.
Chart 1 - Geographic Diversification
The picture looks somewhat brighter in Italy. Improvement in the
debt position is vital for the future of this economy, and the
outlook here is more encouraging following recent legislation
and public sector wage discipline. The lira has now returned to
the European exchange rate mechanism but it is still an open
question whether Italy will be in the first round of countries
to join the single currency.
In the U.K. the most important news was the General Election on
May 1 which brought the Labour Party under Mr. Blair to power
with a massive majority. Given the strength of the economy, it
was surprising to many observers that the electorate rejected
the Conservative Party so comprehensively. The explanation lies
in a deep desire for change after 17 years of Conservative rule,
a sense that Mr. Major's party was divided over Europe, and, in
contrast to previous elections, a much more professional and
disciplined campaign by the Labour Party.
The new government will at least inherit an economy in good
shape with a strong currency, falling unemployment, and
inflation at low levels. The administration has already
surprised and pleased financial markets by giving more
independence to the Bank of England in setting monetary policy,
and its much more positive attitude toward Europe was well
received on the Continent.
The stock market greeted the incoming government with enthusiasm
. . .
The stock market greeted the incoming government with enthusiasm
and pushed on to new highs. International growth stocks such as
SmithKline Beecham and Glaxo Wellcome have performed well, and
the conversion and public offering of building societies
(mutually owned savings associations) stimulated interest in
financial stocks. The recently announced merger between the food
and drinks group Grand Metropolitan, which owns Burger King, and
the leading wines and spirits company Guinness was welcomed by
investors. Both stocks are in our portfolio and each moved
sharply ahead after the announcement.
Some of the best performance came from Europe's smaller bourses,
with Switzerland powering ahead as investors belatedly
appreciated that multinationals such as Novartis and Roche
Holdings-both major pharmaceutical groups-were well positioned
following an unprecedented period of Swiss franc weakness. In
Spain, where ambition to qualify for Monetary Union is driving
widespread reforms, the market also performed well. The sharp
rise in stock prices allowed us to take profits in some of our
positions, including oil company Repsol.
Far East
Stock market performance in the Pacific region was dragged down
by the continued poor performance of Japan. Perhaps
surprisingly, the economy in Japan is performing much better.
Fourth quarter GDP growth of 2.9% was one of the fastest among
the leading industrialized countries. Industrial production
continued strong into the first quarter of this year with
inventories declining and shipments improving significantly.
These broad statistics, however, mask a tale of two economies:
domestic consumption remains poor with the retail and service
sectors depressed, but exports are buoyant, aided by the recent
weakness of the yen. Indeed, the trade surplus has started to
expand again, which will be embarrassing for Tokyo, particularly
if the surplus with the U.S. expands too fast.
This contrast in the domestic economy was also reflected in the
stock market where the export and technology stocks have
performed well, but the financial sector, still struggling to
work out problem loans, has dragged the index down. The loan
problems facing Japanese banks have not been helped by several
real estate transactions in Tokyo at prices some 80% below the
peak of the bubble years. However, there are signs that
commercial property prices are stabilizing at this level, and
the stronger banks can survive provided that the valuation of
their loan collateral deteriorates no further.
Our strategy in the Tokyo market favored the export and
technology sectors, with stocks such as NEC (communications and
computers), Kyocera (ceramic packaging), and Canon (cameras and
office equipment) among our largest positions. In contrast, your
portfolio had no exposure to the bank stocks-the largest sector
in the index itself. This combination of positive stock
selection and underweighting in the market as a whole made a
major contribution to the fund's outperformance.
Industry Diversification
Percent of Percent of
Net Assets Net Assets
10/31/96 4/30/97
____________________________________________________
Services 22.7% 25.7%
Consumer Goods 20.6 19.9
Finance 16.8 15.4
Capital Equipment 15.5 14.5
Energy 8.0 7.9
Materials 6.7 6.9
Multi-industry 3.0 2.9
All Other 0.1 0.1
Reserves 6.6 6.7
____________________________________________________
Total100.0% 100.0%
Elsewhere in the Pacific, stock market sentiment was adversely affected by
a small rise in U.S. interest rates; many countries in the region link their
monetary policies to those of the Federal Reserve so that their currencies
will shadow the U.S. dollar. Export performance in the region was also
disappointing with countries such as Singapore and South Korea particularly
affected by the downturn in the electronic component cycle. The worst
performance came from Thailand where the stock market has halved over the
last 12 months. The problem here centered on a significant oversupply of
commercial property, and subsequent price declines have led to the virtual
bankruptcy of one of Thailand's largest finance companies.
Turning from economics to politics, the major news was unquestionably the
death of China's paramount leader Deng Xiaoping. Although he held no official
posts at the time of his death, his influence on Chinese history has been
immense. Inheriting a backward economy at the time of his succession from
Mao, Deng and his policy of rapid modernization has turned the economy into
a superpower. In sharp contrast to previous history, the transfer of power
has gone smoothly with Jiang Zemin, Deng's hand-picked successor, assuming
control. Continued political stability and an open door policy are essential
for confidence in Hong Kong, which reverts to Chinese sovereignty on June 30.
Although the Hong Kong stock market has been subdued since the beginning of
the year, we are confident that this transition will not affect Hong Kong's
position as the dynamic financial center of the region.
Latin America provided much of the excitement in recent months.
Latin America
As usual, Latin America provided much of the excitement in recent months.
Brazil led the way with an advance of over 30% despite fears that a
deteriorating trade deficit would put downward pressure on the currency. The
government should rise to these challenges, and investors have been impressed
by its commitment to reform in areas such as privatization and the
deregulation of public sector tariffs. Our positions in the Brazilian market
are built around the telecommunications company Telecomunicacoes Brasileiras,
which has outperformed handsomely. Although Brazil dominates our Latin
American holdings, other countries in the region have also moved along the
path of reform and their stock markets have made a useful contribution to
fund performance.
In Mexico the picture is rather more settled, although the banking system
remains fragile and consumer sentiment has been hurt by lower real wages.
Confidence is slowly returning and the market performed much better, led by
blue chips such as telecommunications company Telefonos de Mexico and
retailer Cifra.
The stock markets of Argentina and Chile produced double-digit returns this
year. Both countries have shown a mix of strong economic recovery, inflation
under much better control, and a commitment to economic reform that has
attracted the international investor.
INVESTMENT POLICY AND OUTLOOK
As usual, we have made no dramatic shifts in investment policy, but led
principally by our changing expectations for individual companies, we
implemented some gradual changes in direction. We have been modest net
investors in Japan and our new investments were in the domestic sector, which
has been neglected recently while the exporters and technology stocks enjoyed
the spotlight. Our underweighting in Japan is now at a low level, and there
are signs that this market has passed its worst. With the yen now stronger,
stocks more related to the domestic economy are likely to lead the way, hence
our push into this area. To complement this modest increase in Japan, we have
been shaving positions in the better performing markets of Southeast Asia
such as Malaysia and Hong Kong. Our holdings in Thailand and South Korea are
negligible but we are not yet convinced that the problems in each country
have been fully addressed.
Stock valuations in the U.S., as mentioned, are not as attractive as in other
regions. Since we expect returns there to moderate from their powerful
performance of the past two years, we are likely to maintain our U.S.
holdings at no higher than current levels.
Slightly more than one-third of the portfolio is in Europe where we can find
an attractive combination of economies that are beginning to recover, a
benign interest rate environment, and an increasing focus on shareholder
value. We have been reducing holdings in the U.K. where the economic recovery
is mature and the stock market is beginning to look overextended. Valuations
look more reasonable in Continental Europe where the potential for company
earnings is greater.
Latin America will probably continue to provide the excitement going forward,
but it must be remembered that these are still developing economies with
volatile capital markets. There will always be room for them in an
international portfolio but prudence will govern our exposure.
Pulling all this together, the fund's portfolio is well diversified by
country and individual stock exposure. It gives the investor a reasonable
balance between the established economies overseas where we can find quality
companies at reasonable valuations and the less-developed markets where there
is perhaps more potential but higher risk. This broad strategy has served the
fund well, so far, and should continue to do so in the future.
Respectfully submitted,
Martin G. Wade
President
May 22, 1997
T. Rowe Price Global Stock Fund
Why Japan Remains Pivotal to International Investing
The Japanese stock market has disappointed investors for most of this decade.
Since Japanese stocks make up a significant portion of many diversified
international portfolios (they represented 29% of the Morgan Stanley Europe
Australasia Far East Index as of March 31), their troubles are a major reason
why foreign stocks as a group have lagged behind their U.S. counterparts in
recent years. So far, your fund has maintained a relatively low exposure to
Japanese stocks compared with the EAFE Index. As of April 30, 14% of net
assets were invested in Japan.
Diversification Is Key
Some experts think that after its long slide, the Japanese market is poised
for a strong recovery. We believe the overall market is likely to provide
moderate returns in coming years as the economy recovers from a protracted
recession. More important, we firmly believe that investors should maintain
exposure to Japanese stocks for several reasons:
o The Japanese stock market offers excellent diversification away from
the U.S. market. Over the 15 years through 1996, the two markets moved
in the same direction only 7% of the time. Therefore, adding Japanese
stocks to an all-U.S. portfolio can reduce risk by smoothing out a
portfolio's overall volatility.
o Though certainly not cheap by international standards, the valuations
of Japanese stocks are becoming more reasonable. The overall market was
recently trading at 40 times earnings, down from a high of more than
100 times earnings but still significantly above the U.S. level of
about 18 times projected profits on the Standard & Poor's 500 Stock
Index.
o While some sectors of the Japanese economy, particularly the banks,
still face enormous hurdles, the country is home to many
internationally competitive companies trading at fair valuations. Given
their global orientation, these companies are becoming increasingly
committed to enhancing shareholder value, a concept that has proven
successful in the U.S. but has been traditionally downplayed by
Japanese corporations.
o Japan's economy, second only to that of the U.S., has been in recession
for more than five years and is now experiencing a moderate recovery.
Gross domestic product grew at an estimated 2.8% for the fiscal year
ended in March, among the highest of the industrialized countries.
o The Japanese economy is undergoing significant structural changes.
Banks are increasingly aggressive in writing off their nonperforming
loans. Over the next few years, the financial markets will be
deregulated in Japan's "Big Bang." More companies are recognizing the
importance of shareholder value. These changes should result in
attractive potential investments.
Your fund will continue to target the more attractive areas of the Japanese
market. As of April 30, our holdings were concentrated in globally
competitive and export-oriented industries, such as consumer and industrial
electronics, that had benefited from the weak yen. Recently, we bought some
domestic-oriented companies at attractive prices. In sum, while Japanese
stocks have had their problems and will continue to be volatile, we feel they
provide effective diversification and will bolster the performance of
international portfolios over the long haul.
T. Rowe Price Global Stock Fund
Portfolio Highlights
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
4/30/97
_____________________________________________________
Royal Dutch Petroleum, Netherlands 1.2%
SmithKline Beecham, United Kingdom 1.2
Wolters Kluwer, Netherlands 1.0
Novartis, Switzerland 1.0
Elsevier, Netherlands 1.0
____________________________________________________
Telecomunicacoes Brasileiras, Brazil 1.0
National Westminster Bank, United Kingdom 1.0
Eaux Cie Generale, France 0.9
GE, United States 0.8
Reed International, United Kingdom 0.7
____________________________________________________
Danaher, United States 0.7
Canon, Japan 0.6
Shell Transport & Trading, United Kingdom 0.6
Glaxo Wellcome, United Kingdom 0.6
NEC, Japan 0.6
____________________________________________________
ING Groep, Netherlands 0.6
Nestle, Switzerland 0.6
Roche Holdings, Switzerland 0.6
First Data, United States 0.6
Atlantic Richfield, United States 0.6
____________________________________________________
ABB, Sweden/Switzerland 0.6
Astra, Sweden 0.5
Orkla, Norway 0.5
Kyocera, Japan 0.5
Wal-Mart, United States 0.5
____________________________________________________
Total18.5%
T. Rowe Price Global Stock Fund
Performance Comparison
Chart 2 - SEC Graph
Average Annual Compound Total Return
This table shows how the fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Since Inception
Periods Ended 4/30/97 1 Year Inception Date
________________________________________________________
Global Stock Fund 12.83% 16.70% 12/29/95
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
T. Rowe Price Global Stock Fund
Unaudited
Financial Highlights
For a share outstanding
throughout each period
6 Months 12/29/95
Ended to
4/30/97 10/31/96
NET ASSET VALUE
Beginning of period $ 11.35 $ 10.00
Investment activities
Net investment income 0.03* 0.05*
Net realized and
unrealized gain (loss) 0.90 1.30
Total from
investment activities 0.93 1.35
Distributions
Net investment income (0.06) -
Net realized gain (0.18) -
Total distributions (0.24) -
NET ASSET VALUE
End of period $ 12.04 $ 11.35
Ratios/Supplemental Data
Total return 8.26%* 13.50%*
Ratio of expenses to
average net assets 1.30%!* 1.30%*!
Ratio of net investment
income to average
net assets 0.68%!* 0.88%*!
Portfolio turnover rate 45.2%! 50.0%!
Average commission rate paid $0.0008 $0.0026
Net assets, end of period
(in thousands) $22,224 $14,916
* Excludes expenses in excess of a 1.30% voluntary expense limitation in
effect through 10/31/97.
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Global Stock Fund
Unaudited April 30, 1997
Statement of Net Assets
Shares/Par Value
In thousands
ARGENTINA 0.5%
Common Stocks 0.5%
Banco de Galicia Buenos
Aires (Class B)
ADR (USD) 409 $ 10
Banco Frances del Rio ADR (USD) 495 15
Perez Companc (Class B) 3,160 26
Telefonica de Argentina
(Class B) ADR (USD) 760 25
YPF Sociedad Anonima (Class D)
ADR (USD) 1,020 28
Total Argentina (Cost $89) 104
AUSTRALIA 1.4%
Common Stocks 1.3%
Australia & New Zealand
Bank Group 2,000 13
Australian Gas Light Company 5,052 29
Boral Limited 4,000 12
Broken Hill Proprietary 1,900 27
Coca Cola Amatil 1,000 11
Commonwealth Bank of Australia,
Installment Receipts,
11/14/97 2,600 20
Fosters Brewing Group 4,000 8
Lend Lease 600 12
National Australia Bank 1,037 14
National Mutual Holdings 5,000 7
News Corporation 5,904 27
Publishing & Broadcasting 4,400 23
St. George Bank 3,000 19
Tabcorp Holdings 2,500 12
Westpac Bank 3,200 17
WMC 3,500 21
Woodside Petroleum 3,000 24
296
Preferred Stocks 0.1%
Sydney Harbour Casino
Holdings * 9,000 15
15
Total Australia (Cost $291) 311
AUSTRIA 0.0%
Common Stocks 0.0%
EVN Energie Versorgung Nieder 20 $ 2
Flughafen Wien 70 3
Total Austria (Cost $7) 5
BELGIUM 0.7%
Common Stocks 0.7%
CLF-Dexia * 100 10
Generale de Banque 77 32
Generale de Banque, VVPR Strip 7 -
Kredietbank 235 91
UCB 9 25
Total Belgium (Cost $119) 158
BRAZIL 2.6%
Common Stocks 0.3%
Companhia Siderurgica Nacional 279,000 10
Eletrobras 46,910 21
Telecomunicacoes Brasileiras 205,000 22
Usiminas ADR (USD) 290 4
White Martins 3,921 13
70
Preferred Stocks 2.3%
Banco Bradesco 2,350,426 19
Banco Itau 23,000 12
Brahma 29,000 20
Brasmotor 23,775 6
Cia Cimento Portland Itau 28,000 10
Cia Energetica Minas Gerais * 315,000 14
Cia Energetica Minas
Gerais ADR (144a) (USD) * 150 7
Cia Energetica Minas Gerais
ADR,
Sponsored,
Nonvoting (USD) * 392 18
Cia Tecidos Norte de Minas 23,000 10
Pao de Acucar GDS (USD) 1,190 24
Petrol Brasileiros 87,000 18
Telecomunicacoes Brasileiras 331,000 $ 38
Telecomunicacoes Brasileiras
ADR (USD) 1,555 178
Telecomunicacoes de
Minas Gerais 73,000 12
Telecomunicacoes de
Sao Paulo 145,545 41
Telecomunicacoes do Rio de
Janeiro 73,000 12
Unibanco 693,702 26
Usiminas 19,368,275 23
Usiminas ADR (USD) 1,257 15
503
Total Brazil (Cost $411) 573
CANADA 0.2%
Common Stocks 0.2%
Alcan Aluminium 730 25
Royal Bank of Canada 290 11
Total Canada (Cost $31) 36
CHILE 0.3%
Common Stocks 0.3%
Chile Fund (USD) 230 6
Chilectra ADR (144a) (USD) 150 9
Chilgener ADS (USD) 431 12
Compania Cervecerias Unidas
ADS (USD) 200 5
Compania de Telecomunicaciones
de Chile ADR (USD) 361 12
Empresa Nacional de
Electricidad ADS (USD) 570 11
Enersis ADS (USD) 350 11
Santa Isabel ADR (USD) 339 8
Total Chile (Cost $70) 74
CHINA 0.3%
Common Stocks 0.3%
Huaneng Power International
(Class N) ADR (USD) * 2,100 51
Shanghai Petrochemical
(Class H) (HKD) 54,000 13
Yizheng Chemical Fibre
(Class H) (HKD) 40,000 8
Total China (Cost $59) 72
CZECH REPUBLIC 0.0%
Common Stocks 0.0%
SPT Telecom * 40 $ 4
Total Czech Republic (Cost $5) 4
DENMARK 0.1%
Common Stocks 0.1%
Den Danske Bank 180 16
Tele Danmark (Class B) 80 4
Unidanmark (Class A) 170 8
Total Denmark (Cost $24) 28
FINLAND 0.1%
Common Stocks 0.1%
Nokia (Class A) 520 32
Total Finland (Cost $24) 32
FRANCE 5.1%
Common Stocks 5.1%
Accor 96 14
Alcatel Alsthom 370 41
Assurances Generales de France 320 10
AXA 190 12
Canal Plus 120 22
Carrefour 184 115
Chargeurs International * 77 5
Cie de St. Gobain 402 54
CLF-Dexia 110 10
Eaux Cie Generale 1,357 189
Elf Aquitaine 552 54
GTM Entrepose 130 8
Guilbert 110 17
Havas 140 10
L'Oreal 44 16
Lapeyre 284 17
Legrand 110 $ 19
LVMH 320 78
Pathe * 77 18
Pinault Printemps 191 80
Primagaz 130 13
Promodes 30 10
Rexel 37 10
Sanofi 400 37
Schneider 780 44
Societe Generale 100 11
Sodexho 150 69
Television Francaise 523 50
Total (Class B) 1,103 91
Total France (Cost $1,012) 1,124
GERMANY 2.7%
Common Stocks 2.6%
Allianz * 280 54
Altana 8 6
Bayer * 1,901 74
Bayerische Hypotheken und
Wechsel Bank 919 29
Bilfinger & Berger * 300 11
Buderus 30 14
Commerzbank 520 14
Deutsche Bank 724 38
Deutsche Telekom 663 14
Gehe 1,400 93
Hoechst 330 13
Mannesmann 55 22
Rhoen Klinikum 217 28
SAP 70 13
Schering 214 21
Siemens 390 21
Veba 1,400 72
Veba, Warrants, 4/6/98 * 37 11
Volkswagen 57 36
584
Preferred Stocks 0.1%
Fielmann 120 $ 3
Hornbach Holdings 140 9
SAP 60 11
23
Total Germany (Cost $567) 607
HONG KONG 2.3%
Common Stocks 2.3%
Cathay Pacific Airways 12,000 19
Dao Heng Bank Group 6,000 28
First Pacific 28,231 34
Guoco Group 8,000 38
Hong Kong Land Holdings (USD) 34,575 72
Hopewell Holdings 60,000 31
Hutchison Whampoa 11,000 82
New World Development 14,207 82
Swire Pacific (Class A) 9,000 69
Wharf Holdings 17,000 64
Total Hong Kong (Cost $541) 519
ITALY 1.7%
Common Stocks 1.7%
Banca Commerciale Italiana 3,000 6
Banca Fideuram 10,000 25
Credito Italiano 8,796 12
ENI 6,000 31
Gucci Group (USD) 1,071 74
IMI 2,000 17
Industrie Natuzzi ADR (USD) 1,000 22
Italgas 2,600 9
Mediolanum 1,000 10
Rinascente 1,000 5
Seat * 8,000 3
Seat, Savings Shares * 4,000 1
Stet 11,000 52
Stet, Savings Shares 4,000 $ 15
Telecom Italia 8,000 21
Telecom Italia Mobile 23,000 72
Total Italy (Cost $316) 375
JAPAN 13.6%
Common Stocks 13.6%
Advantest 330 18
Alps Electric 2,000 23
Amada 5,000 37
Canon 6,000 142
Citizen Watch 4,000 29
Daifuku 1,000 12
Daiichi Pharmaceutical 4,000 64
DaiNippon Screen Manufacturing 3,000 24
Daiwa House 5,000 56
DDI 7 47
Denso 5,000 114
East Japan Railway 13 56
Fanuc 1,000 34
Hitachi 7,000 63
Hitachi Zosen 7,000 24
Inax 3,000 19
Ito-Yokado 2,000 96
Kao 3,000 35
Kokuyo 2,000 44
Komatsu 5,000 37
Komori 2,000 43
Kumagai Gumi 3,000 4
Kuraray 4,000 35
Kyocera 2,000 120
Makita 3,000 41
Marui 4,000 66
Matsushita Electric Industrial 6,000 96
Mitsubishi 3,000 28
Mitsubishi Heavy Industries 16,000 106
Mitsubishi Paper Mills 2,000 6
Mitsui Fudosan 8,000 $ 91
Mitsui Petrochemical Industries 3,000 14
Murata Manufacturing 2,000 74
National House Industrial 1,000 12
NEC 11,000 134
Nippon Hodo 1,000 7
Nippon Steel 22,000 63
Nippon Telephone & Telecom 6 42
Nomura Securities 5,000 56
Pioneer Electronic 2,000 36
Sankyo 4,000 107
Sega Enterprises 1,000 26
Sekisui Chemical 6,000 58
Sekisui House 3,000 27
Seven Eleven Japan 1,000 63
Sharp 5,000 65
Shin-Etsu Chemical 3,000 61
Shiseido 1,000 14
Sony 1,400 102
Sumitomo 7,000 47
Sumitomo Electric Industries 8,000 108
Sumitomo Forestry 2,000 20
TDK 1,000 72
Teijin 9,000 36
Tokio Marine & Fire Insurance 3,000 29
Tokyo Electronics 1,100 43
Tokyo Steel Manufacturing 1,500 16
Toppan Printing 3,000 39
Uny 2,000 35
Yurtec 1,000 10
Total Japan (Cost $3,261) 3,026
MALAYSIA 1.5%
Common Stocks 1.5%
Affin Holdings 13,200 $ 32
Berjaya Sports Toto 7,000 33
Commerce Asset Holdings 3,000 18
MBF Capital 14,000 21
Multi-Purpose Holdings 18,000 29
Renong 24,000 33
Resorts World 4,000 15
Tanjong 10,000 36
Technology Resources
Industries * 7,000 13
Time Engineering 8,000 15
United Engineers 11,000 78
323
Preferred Stocks 0.0%
Multi-Purpose Holdings, Cv.
Loan Stock, 3.00%, 1/13/02 18,000 7
Renong, Cv. Loan Stock, 4.00%,
5/21/01 600 -
7
Total Malaysia (Cost $362) 330
MEXICO 1.3%
Common Stocks 1.3%
Cemex (Class B) 3,000 11
Cemex ADS (USD) 8,000 53
Cifra (Class B) ADR (USD) 20,090 30
Fomentos Economico Mexicano
(Class B) 3,230 15
Gruma (Class B) * 2,771 13
Gruma (Class B) ADS (USD) * 728 14
Grupo Financiero Banamex
(Class B) * 4,490 10
Grupo Industrial Maseca
(Class B) * 8,000 8
Grupo Modelo (Class C) 2,000 12
Grupo Televisa GDR (USD) * 323 8
Kimberly-Clark Mexico (Class A) 7,721 28
Panamerican Beverages
(Class A) (USD) 670 19
Telefonos de Mexico (Class L)
ADR (USD) 1,680 69
Total Mexico (Cost $279) 290
NETHERLANDS 6.4%
Common Stocks 6.4%
ABN Amro Holdings 1,100 $ 76
Ahold 778 53
Akzo Nobel 430 55
Baan Company (USD) 290 16
CSM 1,088 63
Elsevier 13,671 219
Fortis Amev 1,040 39
Hagemeyer 230 20
ING Groep 3,420 134
ING Groep, Warrants, 3/15/01 * 1,169 11
Koninklijke PTT Nederland 438 16
Nutricia 180 27
Polygram 1,695 83
Royal Dutch Petroleum 1,530 273
Unilever 521 101
Wolters Kluwer 1,948 231
Total Netherlands (Cost $1,275) 1,417
NEW ZEALAND 0.4%
Common Stocks 0.4%
Air New Zealand (Class B) 8,000 23
Carter Holt Harvey 3,300 7
Fernz 2,400 8
Fletcher Challenge Building 5,450 15
Fletcher Challenge Energy 250 1
Fletcher Challenge Forests
Division 7,097 10
Fletcher Challenge Paper 3,500 8
Telecom Corporation of New
Zealand 4,800 22
Total New Zealand (Cost $92) 94
NORWAY 1.1%
Common Stocks 1.1%
Norsk Hydro 2,220 $ 108
Orkla (Class A) 1,433 120
Saga Petroleum (Class B) 400 7
Total Norway (Cost $191) 235
PERU 0.0%
Common Stocks 0.0%
Telefonica del Peru (Class B)
ADS (USD) 419 10
Total Peru (Cost $10) 10
PHILIPPINES 0.2%
Common Stocks 0.2%
Philippine Long Distance
Telephone 500 29
Philippine National Bank * 4,125 27
Total Philippines (Cost $67) 56
PORTUGAL 0.3%
Common Stocks 0.3%
Jeronimo Martins * 926 55
Jeronimo Martins, Warrants,
9/15/03 * 77 2
Total Portugal (Cost $32) 57
SINGAPORE 1.5%
Common Stocks 1.5%
City Developments 3,000 24
DBS Land 4,500 15
Development Bank of Singapore 2,000 24
Fraser & Neave 3,000 22
Keppel 1,000 4
Keppel (Class A), New * 250 1
Overseas Chinese Bank 1,000 12
Overseas Union Bank 7,000 46
Singapore Land 6,000 28
Singapore Press 2,600 $ 48
United Industrial 8,000 6
United Overseas Bank 8,000 75
Wing Tai Holdings 7,000 18
Total Singapore (Cost $385) 323
SOUTH KOREA 0.1%
Common Stocks 0.1%
Korea Electric Power 700 21
Total South Korea (Cost $25) 21
SPAIN 1.3%
Common Stocks 1.3%
Argentaria Banca de Espana 320 14
Banco Bilbao Vizcaya 220 15
Banco Popular Espanol 147 31
Banco Santander 560 42
Centros Comerciales Pryca 460 8
Empresa Nacional de Electricidad 544 38
Gas Natural 217 46
Iberdrola 2,352 27
Repsol 823 34
Telefonica de Espana 1,121 29
Total Spain (Cost $244) 284
SWEDEN 1.4%
Common Stocks 1.4%
ABB (Class A) 1,800 22
Astra (Class B) 3,060 121
Atlas Copco (Class B) 1,260 31
Electrolux (Class B) 700 40
Hennes & Mauritz (Class B) 370 54
Sandvik (Class B) 1,415 35
Total Sweden (Cost $266) 303
SWITZERLAND 3.3%
Common Stocks 3.3%
ABB 90 $ 109
Adecco 196 65
Ciba Specialty Chemicals * 141 12
Credit Suisse Group 190 21
Nestle 110 134
Novartis 171 225
Roche Holdings 15 127
Schweizerischer Bankverein 160 35
Total Switzerland (Cost $622) 728
THAILAND 0.1%
Common Stocks 0.1%
Advanced Information Service 300 2
Bangkok Bank 1,300 12
Siam Cement 100 3
Thai Farmers Bank 1,000 6
Total Thailand (Cost $39) 23
UNITED KINGDOM 10.0%
Common Stocks 10.0%
Abbey National 6,000 83
Argos 5,480 57
Asda Group 19,000 35
BAA 1,000 8
BG * 4,000 12
British Petroleum 4,000 46
Cable & Wireless 10,000 77
Cadbury Schweppes 7,000 58
Caradon 13,000 52
Centrica * 4,000 4
Coats Viyella 3,000 6
Compass Group 4,000 44
David S. Smith 5,000 18
Electrocomponents 4,000 26
GKN 1,000 $ 15
Glaxo Wellcome 7,000 138
Grand Metropolitan 12,000 100
Guinness 9,100 75
Heywood Williams Group 1,000 4
Hillsdown Holdings 3,000 9
John Laing (Class A) 3,000 18
Kingfisher 9,400 102
Ladbroke Group 5,000 19
National Westminster Bank 18,000 213
Rank Group 8,000 55
Reed International 9,000 166
Rolls Royce 3,000 12
RTZ 5,000 79
Safeway 8,000 44
Sears 3,000 4
Shell Transport & Trading 8,000 142
SmithKline Beecham 17,000 272
T & N 6,000 13
Tesco 7,000 40
Tomkins 19,000 82
United News & Media 8,400 103
Total United Kingdom (Cost $1,961) 2,231
VENEZUELA 0.0%
Common Stocks 0.0%
Compania Anonima Nacional
Telefonos de Venezuela
(Class D) ADR (USD) * 280 8
Total Venezuela (Cost $9) 8
UNITED STATES 32.8%
Common Stocks 32.8%
3Com * 1,400 41
Aames Financial 2,700 42
ACE Limited 1,400 84
ADT * 2,500 68
AlliedSignal 1,500 $ 108
Altera * 1,500 74
American Stores 800 36
Apria Healthcare * 1,300 22
Atlantic Richfield 900 123
B. F. Goodrich 2,100 84
BankBoston * 1,300 95
Baxter International 1,300 62
BellSouth 1,600 71
BMC Software * 2,100 91
Boeing 800 79
Boston Scientific * 1,200 58
Bristol-Myers Squibb 800 52
Carnival (Class A) 2,200 81
Cellular Communications
International * 2,000 50
Chase Manhattan 1,200 111
Cisco Systems * 1,000 52
Citicorp 900 101
Colgate-Palmolive 900 100
Columbia/HCA Healthcare 2,700 94
Cooper Cameron * 300 21
Corning 1,500 72
Corporate Express * 4,650 47
CUC International * 4,750 100
Danaher 3,300 149
Dell Computer 200 17
Disney 1,200 98
Electronic Data Systems 900 30
Emerson Electric 1,000 51
EXEL 1,500 58
Fannie Mae 1,000 41
Federated Department Stores * 1,200 41
First Data 3,600 124
Fleet Financial Group 600 37
Freddie Mac 3,600 115
Gannett 500 44
GE 1,600 177
General Nutrition * 5,200 $ 112
Great Lakes Chemical 800 34
Gulfstream Aerospace * 3,700 94
H&R Block 1,900 61
HealthSouth * 3,000 59
Hewlett-Packard 1,300 68
Hubbell (Class B) 2,300 100
Ikon Office Solutions 2,500 67
Intel 600 92
Johnson & Johnson 1,500 92
Kimberly-Clark 1,000 51
La Quinta Inns 2,400 53
Lucent Technologies 800 47
Mattel 2,200 61
Maxim Integrated Products * 1,000 53
McDonald's 1,000 54
MCI 700 27
Medtronic 700 48
Merck 1,100 100
Microsoft * 900 109
Mid Ocean Limited 1,200 55
Mobil 900 117
Money Store 1,600 35
Nabisco Holdings (Class A) 800 31
Nationwide Financial Services
(Class A) * 1,500 40
Newell 1,800 63
Newmont Mining 1,300 45
Norwest 2,200 110
Oracle * 2,000 79
PacifiCare Health Systems
(Class B) * 800 64
Parametric Technology * 1,100 50
Partnerre 2,100 71
Patriot American Hospitality 1,400 30
PepsiCo 2,600 91
Pfizer 1,000 96
Pharmacia & Upjohn 700 21
Philip Morris 1,700 67
PLATINUM Technology * 2,400 $ 29
Procter & Gamble 400 50
Quorum Health Group * 2,600 81
Revco 500 22
Richfood Holdings 2,400 49
Sallie Mae 400 47
Sara Lee 2,100 88
SBC Communications 900 50
Service Corp International 2,600 89
St. John Knits 1,700 65
Synopsys * 3,300 105
Teleflex 1,600 92
Time Warner 1,300 58
Tommy Hilfiger * 1,000 40
Travelers Group 1,233 68
Travelers Property Casualty
(Class A) * 2,300 78
Tribune 1,900 83
TriMas 3,400 84
Tyco International 1,300 79
USA Waste Services 1,000 33
USX-Marathon 3,500 97
V. F. 300 22
Vencor * 2,300 96
Wal-Mart 4,200 119
Warnaco Group (Class A) 2,500 71
Warner-Lambert 700 69
World Com 2,600 62
Total United States (Cost $6,476) 7,274
SHORT-TERM INVESTMENTS 3.8%
Commercial Paper 3.8%
Delaware Funding, 4(2), 5.55%,
6/2/97 $500,000 498
Investments in Commercial
Paper through a Joint
Account,
5.60%, 5/1/97 349,267 349
Total Short-Term Investments
(Cost $847) 847
Total Investments in Securities
97.1% of Net Assets
(Cost $20,009) $21,579
Other Assets Less Liabilities 645
NET ASSETS $22,224
________
Net Assets Consist of:
Accumulated net investment
income - net of
distributions $ 55
Accumulated net realized
gain/loss - net of
distributions 423
Net unrealized gain (loss) 1,570
Paid-in-capital applicable to
1,846,368 shares of $ 0.01
par value capital stock
outstanding; 2,000,000,000
shares of the Corporation
authorized 20,176
NET ASSETS $22,224
________
NET ASSET VALUE PER SHARE $ 12.04
________
* Non-income producing
4(2) Commercial paper sold within terms of a private placement
memorandum, exempt from registration under section 4.2 of the
Securities Act of 1933, as amended, and may be sold only to
dealers in that program or other "accredited investors."
144a Security was purchased pursuant to Rule 144a under the Securities
Act of 1933 and may not be resold subject to that rule except to
qualified institutional buyers-total of such securities at
year-end amounts to .07% of net assets.
HKD Hong Kong dollar
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Global Stock Fund
Unaudited
Statement of Operations
In thousands
6 Months
Ended
4/30/97
Investment Income
Income
Dividend (net of foreign
taxes of $ 15) $ 146
Interest 38
Total income 184
Expenses
Custody and accounting 69
Shareholder servicing 38
Registration 13
Legal and audit 5
Directors 4
Prospectus and shareholder reports 3
Miscellaneous 6
Reimbursed by manager (17)
Total expenses 121
Net investment income 63
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 436
Foreign currency transactions (5)
Net realized gain (loss) 431
Change in net unrealized gain or loss
Securities 850
Other assets and liabilities
denominated in foreign currencies (2)
Change in net unrealized gain or loss 848
Net realized and unrealized gain (loss) 1,279
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,342
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Global Stock Fund
Unaudited
Statement of Changes in Net Assets
In thousands
6 Months 12/29/95
Ended to
4/30/97 10/31/96
Increase (Decrease) in Net Assets
Operations
Net investment income $ 63 $ 70
Net realized gain (loss) 431 246
Change in net unrealized
gain or loss 848 722
Increase (decrease) in net
assets from operations 1,342 1,038
Distributions to shareholders
Net investment income (84) -
Net realized gain (254) -
Decrease in net assets from
distributions (338) -
Capital share transactions*
Shares sold 8,990 16,948
Distributions reinvested 329 -
Shares redeemed (3,015) (3,070)
Increase (decrease) in net
assets from capital
share transactions 6,304 13,878
Net Assets
Increase (decrease) during
period 7,308 14,916
Beginning of period 14,916 -
End of period $ 22,224 $14,916
_________ ________
*Share information
Shares sold 759 1,596
Distributions reinvested 28 -
Shares redeemed (255) (282)
Increase (decrease) in
shares outstanding 532 1,314
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Global Stock Fund
Unaudited
April 30, 1997
T. Rowe Price Global Stock Fund
Notes to Financial Statements
Note 1 - Significant Accounting Policies
T. Rowe Price International Funds, Inc. (the corporation) is registered under
the Investment Company Act of 1940. The Global Stock Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation and commenced operations on December 29, 1995.
Valuation Equity securities 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.
Short-term debt securities are valued at amortized cost which 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.
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.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and distributions
to shareholders are recorded by the fund on the ex-dividend date. 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 or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Commercial Paper Joint Account The fund, and other affiliated funds, may
transfer uninvested cash into a commercial paper joint account, the daily
aggregate balance of which is invested in high-grade commercial paper. All
securities purchased by the joint account satisfy the fund's criteria as to
quality, yield, and liquidity.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $9,478,000 and $3,966,000, respectively, for the six
months ended April 30, 1997.
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, 1997, the aggregate cost of investments for federal income tax
and financial reporting purposes was $20,009,000, and net unrealized gain
aggregated $1,570,000, of which $2,418,000 related to appreciated investments
and $848,000 to depreciated investments.
Note 4 - Related Party Transactions
The fund is managed by Rowe Price-Fleming International, Inc. (the manager),
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 the manager provides
for an annual investment management fee. 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 0.30% for assets in excess of $80 billion. At April 30, 1997,
and for the six months then ended, the effective annual group fee rate was
0.33%. The fund pays a pro-rata share of the group fee based on the ratio of
its net assets to those of the group.
Under the terms of the investment management agreement, the manager is
required to bear any expenses through October 31, 1997, which would cause the
fund's ratio of expenses to average net assets to exceed 1.30%. Thereafter,
through October 31, 1999, the fund is required to reimburse the manager for
these expenses, provided that average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing the fund's ratio
of expenses to average net assets to exceed 1.30%. Pursuant to this
agreement, $63,000 of management fees were not accrued by the fund for the
six months ended April 30, 1997, and $17,000 of other expenses were borne by
the manager. Also pursuant to this agreement, $165,000 of unaccrued fees and
expenses from the prior year remain subject to reimbursement through October
31, 1999.
In addition, the fund has entered into agreements with Price Associates and
two wholly owned subsidiaries of Price Associates, pursuant to which the fund
receives certain other services. Price Associates computes the daily share
price and maintains the financial records of the fund. T. Rowe Price
Services, Inc., is the fund's transfer and dividend disbursing agent and
provides shareholder and administrative services to the fund. T. Rowe Price
Retirement Plan Services, Inc., provides subaccounting and recordkeeping
services for certain retirement accounts invested in the fund. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $78,000 for the six months ended April 30, 1997, of which
$14,000 was payable at period-end.
During the six months ended April 30, 1997, the fund, in the ordinary course
of business, placed security purchase and sale orders aggregating $114,000
with certain affiliates of the manager and paid commissions of $1,000 related
thereto.
T. Rowe Price Discount Brokerage
Discount Brokerage
A Division of T. Rowe Price Investment Services, Inc., Member NASD/SIPC
This low-cost service gives you the opportunity to easily consolidate all
your investments with one company. Through T. Rowe Price Discount Brokerage,
you can buy and sell individual securities-stocks, bonds, options, and
others-at considerable commission savings over full-service brokers.* We also
provide a wide range of services, including:
Automated Telephone and Computer Services You can enter trades, access
quotes, and review account information 24 hours a day, seven days a week. Any
trades executed through these programs save you an additional 10% on
commissions.**
Investor Information A variety of informative reports, such as our Brokerage
Insights series, S&P Market Month newsletter, and select stock reports, can
help you better evaluate economic trends and investment opportunities.
Dividend Reinvestment Service Virtually all stocks held in customer accounts
are eligible for this service, free of charge.
* Based on a February 1997 telephone survey that compared our commission
rates on stock transactions of various sizes with those of other
full-service and discount brokerages. Commission rates will vary based
on size and nature of trades. Services vary by firm. For additional
information concerning our commission rates and services, call
1-800-638-5660.
** Discount applies to our current commission schedule; subject to our $35
minimum commission.
T. Rowe Price Shareholder Services
Investment Services And Information
Knowledgeable Service Representatives
By Phone Shareholder service representatives are available from 8 a.m. to
10 p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on weekends.
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. You can
also drop off applications or obtain prospectuses and other literature at
these centers.
Automated 24-Hour Services
Tele*Access(registered trademark) Call 1-800-638-2587 to obtain information
such as account balance, date and amount of your last transaction, latest
dividend payment, fund prices, and yields. Additionally, you have the ability
to request prospectuses, statements, and account and tax forms; to reorder
checks; and to initiate purchase, redemption, and exchange orders for
identically registered accounts.
T. Rowe Price OnLine Through a personal computer via dial-up modem, you can
replicate all the services available on Tele*Access plus conduct transactions
in your Discount Brokerage and Variable Annuity accounts.
Account Services
Checking Write checks for $500 or more on any money market and most bond
fund accounts (except the High Yield and Emerging Markets Bond Funds).
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 $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.
DISCOUNT BROKERAGE*
Investments Available You can trade stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates.
To Open an Account Call a shareholder service representative for more
information.
Investment Information
Combined Statement A comprehensive overview of your T. Rowe Price accounts
is provided. The summary page gives you 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.
Shareholder Reports Portfolio managers review the performance of the funds
in plain language and discuss T. Rowe Price's economic outlook.
T. Rowe Price Report This is a quarterly newsletter with relevant articles
on market trends, personal financial planning, and T. Rowe Price's economic
perspective.
Performance Update This quarterly report reviews recent market developments
and provides comprehensive performance information for every T. Rowe Price
fund.
Insights This library of information includes reports on mutual fund tax
issues, investment strategies, and financial markets.
Detailed Investment Guides Our widely acclaimed Asset Mix Worksheet, College
Planning Kit, Diversifying Overseas: A Guide to International Investing,
Retirees Financial Guide, and Retirement Planning Kit (also available on disk
for PC use) can help you determine and reach your investment goals.
* A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(registered trademark):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus of the
T. Rowe Price Global Stock Fund.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
Invest With Confidence(registered trademark)
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor.
F04-051 4/30/97
Chart 1 - Geographic Diversification - pie chart showing Europe 34%, United
States 33%, Japan 14%, Far East 8%, Latin America 5%, and Other and Reserves
6%.
Chart 2 - SEC Graph: a line chart showing the cumulative growth of $10,000
invested in the Global Stock Fund from inception compared with $10,000
invested in a broad-based index and average over the same period.
