Semiannual Report
Global
Stock Fund
April 30, 1998
T. Rowe Price
Report Highlights
Global Stock Fund
o Global stocks were strong overall, and your fund performed
well over the six months ended April 30, 1998.
o Fund returns surpassed the Lipper peer group during the 6-
and 12-month periods and lagged the MSCI World Index due
largely to our focus on growth stocks and lower exposure to
strong European and U.S. markets.
o Nearly 80% of fund assets were invested equally between the
U.S. and Europe, 12% in Asia, and the balance in Latin
America and a small cash reserve.
o We believe our growth stock approach and broad regional
diversification will continue to reward investors over time.
Fellow Shareholders
Global stock markets were strong as a group, and your fund
performed well during the six months under review. European
bourses led the way, with returns in major markets there
surpassing S&P 500 stocks for the first time in several years. As
in the U.S., large-cap stocks continued to generate higher
returns than their smaller-cap counterparts.
Performance Comparison
Periods Ended 4/30/98 6 Months 12 Months
______________________________________________________________
Global Stock Fund 18.29% 27.81%
MSCI World Index 19.08 29.53
Lipper Global Funds Average 16.66 27.18
Results were strong for both the 6- and 12-month periods ended April 30, due
largely to the portfolio's exposure to the powerful European and U.S. markets.
Returns were slightly behind the unmanaged MSCI World Index for both periods,
reflecting our lower weightings in the U.S. and Europe, and ahead of the
Lipper Global Funds Average. We believe our strategy of broad regional
diversification will continue to benefit shareholders over time. We maintained
our preference for quality growth stocks, some of which underperformed other
equity sectors.
An important theme in world markets was the investor focus on recovering
cyclicals and restructuring situations, and against this backdrop a number of
our growth favorites were left behind. A typical example would be the
financial sector. This is not a natural home for the growth stock investor
but, just as in the U.S., the sector has led a number of European markets,
driven by a steady stream of mergers and acquisitions. The financial sector is
one of the largest in most European markets, and our underweighting, although
reduced significantly during the six months, has been uncomfortable. Another
factor in stock selection was our use of medium- and smaller-capitalized
companies, many of which are only a minor component of the index. We find
growth much more attractively valued in such stocks but, again, our choices
trailed local indices during a period where most of the action has been in
large companies.
Global stock markets recovered well following the Southeast Asian crisis of
late last year. As mentioned, European markets took the lead, driven by signs
of economic recovery on the Continent and continued corporate activity. Even
the Pacific markets rallied at the beginning of the calendar year, but
subsequently faded as Japan's economy failed to recover and the secondary
effects of the Southeast Asian crisis began to emerge. Major Latin American
stock markets were strong but others were weak as some of the economic reforms
stalled and the emerging market label impaired investor sentiment.
1999: The Year of the Euro
On the first business day of 1999, several major European countries will
officially inaugurate the European Economic and Monetary Union (EMU) and adopt
the euro as a single European currency backed by the European Central Bank.
The event could be one of the most significant financial developments of the
century, creating a vast economic and currency bloc equal to the U.S. in size
and power. Since the EMU has far-reaching implications for investors and funds
with exposure to European securities, it is important for you to understand
what is taking place.
The currencies of the original participating countries will become fixed rate
units of the euro, much the same as the nickel, dime, quarter, and half dollar
are denominations of the U.S. dollar. The exchange rates versus the euro were
set in May and will officially be determined by the end of 1998.
Country Currency Euro Rate
_________________________________________________________
Austria Schilling 13.91
Belgium Franc 40.78
Finland Mark 6.01
France Franc 6.63
Germany Mark 1.98
Ireland Punt 0.80
Italy Lira 1958.00
Luxembourg Franc 40.78
Netherlands Guilder 2.23
Portugal Escudo 202.70
Spain Peseta 168.20
Source: The Wall Street Journal, May 4, 1998
Beginning in January 1999, some European holdings will be redenominated in
euros, particularly government securities. The face value of other investments
might remain in the existing national currencies for a time, but they will be
priced, settled, and valued in euros by stock exchanges and other agencies.
Thus, some of the European holdings in your funds will be valued in euros.
This will not affect the investment value of your funds in U.S. dollar terms,
since the euro will be converted into the dollar in the same way
deutschemarks, francs, lire, and other European currencies are currently
converted at the prevailing exchange rates.
During the transition period, which lasts from January 1, 1999, until June 30,
2002, other countries that have moved to adopt \the economic terms of the
Maastricht Treaty of 1993 will be able to participate in the EMU. The primary
criteria for joining are:
o a sustainable budget deficit less than 3% of GDP;
o public debt less than 60% of GDP;
o low inflation and interest rates; and
o no currency devaluations within two years of application.
Some of the original participants are not totally compliant with these terms
but are expected to embrace them by 2002. Countries joining later may have to
be in strict accord before entering the EMU, or at least be well along the
path to achieving them. So far, the transition seems to be progressing
smoothly, but there has been resistance to some of the more stringent terms.
French Socialists, in particular, would prefer to maintain heavy government
subsidies for social programs. Therefore, the jury is still out on whether
complete economic and monetary convergence will be attained as planned.
Assuming all goes well, the national currencies of participating countries
will cease to exist and all accounting will be in euros following the
transition period. However, regardless of whether or not full convergence is
realized on the date specified, we do not expect pricing in euros to have any
special impact on the value of your investment. Of course, problems could
develop that might be unfavorable for the fund, but we do not anticipate them
at this time.
This supplements the prospectus dated March 1, 1998.
INVESTMENT REVIEW
United States
The U.S. market continued to move higher in the first six months of our fiscal
year. While the slowdown in the Far East hurt earnings of cyclical and
technology issues, lower interest rates helped the U.S. consumer and the
overall valuation of the market. The combined effect has been continued
earnings growth and higher stock valuations. Your portfolio of U.S. stocks
performed well over the six months, although our low weighting in the U.S.
relative to the index slightly impaired performance. As our concerns about the
Far East grew, we raised our weighting in U.S. stocks.
During the remainder of 1998, we expect earnings growth to accelerate from
first quarter levels and U.S. economic growth to slightly decelerate. This
comment appears somewhat inconsistent, but we believe corporate earnings will
be helped by events overseas, such as an eventual leveling in oil prices,
reduced fallout from the Asian crisis, and stronger European economic
recovery. As always, we will continue to focus mainly on the performance of
individual companies. We are pleased at the prospects for our top holdings,
including GE, Freddie Mac, Danaher, Bristol-Myers Squibb, and Tyco
International, which appear well positioned for continued growth.
Market Performance
Six Months Local Local Currency U.S.
Ended 4/30/98 Currency vs. U.S. Dollars Dollars
_________________________________________________________________________
France 42.66% -4.35% 36.45%
Germany 36.45 -4.09 30.87
Hong Kong -9.43 -0.21 -9.62
Italy 54.01 -4.62 46.90
Japan -1.11 -8.98 -9.99
Mexico 15.25 -0.98 14.12
Netherlands 25.96 -3.95 20.99
Norway 5.91 -6.13 -0.59
Switzerland 35.37 -6.90 26.03
United Kingdom 23.74 -0.29 23.38
United States 22.85 - 22.85
Source: FAME Information Services, Inc., based on MSCI indices.
During the past six months, we benefited from strong performances from
Warner-Lambert, Pfizer, and United HealthCare in the health care segment. In
technology, core holdings such as Microsoft, BMC Software, and Parametric
Technology appreciated sharply. Other major contributors were Disney, Warnaco
Group, and Wal-Mart.
On the negative side of the ledger, we were hurt by Compaq Computer and Oracle
and added to the latter on the weakness. In addition, we were hurt by
Cendant's disclosure of accounting problems. Oil stocks were also weak,
victims of a warm winter and excess supply, which drove prices down.
Although U.S. stock valuations are high, we took advantage of opportunities to
buy great companies at reasonable prices. We added Halliburton following oil
sector weakness, and Tellabs, Nokia, and AirTouch Communications after the
technology sell-off late last year. We also took a position in Wellpoint
Health Networks in the HMO sector, and most of these stocks have performed
well so far.
Europe
The goal of European monetary union took a step closer to reality with 11 of
the member states achieving Maastricht economic convergence criteria, thereby
agreeing to link their currencies as a precursor to the introduction of the
euro in 1999. Only Greece failed the Maastricht test, and the remaining three
states-U.K., Sweden, and Denmark-have opted out of European Monetary Union
(EMU) for the time being. Perhaps more important than the symbolism,
preparation for monetary union has required key European economies to adopt
far stronger fiscal measures than would otherwise have been the case. Equally
important, these economies are at about the same point of their economic
cycles, which means that a common monetary policy stands a better chance of
success. Aside from the rising optimism about EMU, the combination
of moderate inflation, steadily improving economic activity, and the
realization that Europe is relatively immune from the Asian crisis all
contributed to the strengths of European bourses.
Turning to individual countries, the U.K. economy continues to be ahead of the
cycle in Continental Europe. In fact, it has remarkable similarities to the
U.S. in the sense that steady growth has not yet triggered inflation despite
some signs of overheating. This is partly due to the strength of sterling,
which in turn has dampened exports, but consumer spending has been remarkably
buoyant. This has left the Bank of England, now independently responsible for
monetary policy, with something of a dilemma. If it raises interest rates to
moderate the domestic economy, sterling will rise further, putting exports
under even more pressure. Conversely, any decline in interest rates will help
manufacturers but run the risk of further stimulating the buoyant consumer
sector. Faced with this dilemma, the Bank's policy committee remains split,
but it is probably right to do nothing until the outlook clears a little more.
Geographic Diversification
United States 40%
Europe 39%
Japan 9%
Latin America 4%
Far East 3%
Other and Reserves 5%
Based on net assets as of 4/30/98.
The stock market performed well with attention focused on the service sector.
The financial sector led the way and our position in National Westminster
Bank, currently the portfolio's largest holding, recovered lost ground against
its peers. Although not part of the merger and acquisition activity, a heavy
cost-cutting program at this bank caught investor attention. Two other large
U.K. holdings, Glaxo Wellcome and SmithKline Beecham, made headlines when they
announced a merger that would have created the largest pharmaceutical company
outside the U.S. Unfortunately, the merger aborted over the inability of
management to agree on key executive positions in the new combine and it was
frustrating to see stock prices slide away.
In Germany the economy continued to recover steadily led by exports.
Unemployment has started to edge down but is still high compared with
historical levels, and this has undermined consumer confidence. Interest rates
remained stable despite the weakness of the deutschemark. Politics have
attracted increased attention in Germany with the Social Democratic Party
electing Gerhard Schroeder as its candidate for Chancellor, whereas Chancellor
Kohl's Christian Democrats performed very poorly in recent provincial
elections. There are general elections in September and it looks as though Mr.
Kohl's long tenure as Chancellor might end. Buoyed by signs of recovery and
stable interest rates, the German market did well. Although the portfolio is
underweight in Germany (3.4% of net assets), a number of our larger holdings
such as business software supplier SAP aided results.
In the Netherlands, our overweighting has not worked well. Publishing
companies Wolters Kluwer and Elsevier, two important holdings, have
underperformed since abandoning their merger earlier this year. Both companies
pursued a successful strategy of acquiring smaller publishers; together they
would have been a formidable force, but separately they are likely to compete
with each other as smaller publishers are bought out by their larger rivals.
At least ING Groep, a financial holding company, participated in Europe's
booming financial sector, and the musical publisher Polygram powered ahead as
parent Philips Electronics announced it was considering a spinoff.
France is showing signs of recovery from its awkward mix of high unemployment,
low growth, but a steady trade surplus. Some moderate reflation looks like the
obvious answer but labor rigidities remain a formidable obstacle. With France
one of the largest of the new EMU countries, monetary policy will now lie in
the hands of the new European Central Bank, and this will ensure that an
external discipline pushes domestic reform. Despite this dull economic
background, the stock market was one of the leaders in Europe and our
overweighting here (5.3% of net assets) was helpful. Strong performance was
seen in financial conglomerate AXA, retailer Pinault Printemps, and caterer
Sodexho Alliance, which has recently announced a tie-in with Marriott to gain
access to the U.S. market and improve economies of scale.
In Switzerland, the trend was similar to other markets with pharmaceuticals
such as Novartis and Roche Holdings lagging the market. Employment services
company Adecco is a good example of a European niche service company doing
well, and our holding here contributed strongly.
Far East
In contrast with the brighter picture in Europe, the economies of the Pacific
Basin continued in poor shape. In Japan a range of problems plagued the
economy-some external, some self-induced. A large proportion of Japanese
exports go to the Pacific region and the collapse in demand has been
unhelpful. However, the most important factor is probably poor consumer
sentiment with rising unemployment becoming a real source of concern, and
corporate bankruptcies at unprecedented levels simply add to the gloom.
Foreign governments, particularly the U.S., have tried to persuade Japan to
ease fiscal policy, but Prime Minister Hashimoto, the author of the ill-fated
hike in the consumption tax last year, has found it politically difficult to
reverse his position.
To see the real extent of Japan's problems, one need look no further than the
banking sector. Following the bubble years of the late 1980s, Japan's banks
became overextended and are now saddled with substantial bad loans,
particularly in the real estate sector. For a long time the Japanese
authorities seemed to deny the problems facing the banks, whereas resolute
action earlier might have avoided the trauma now engulfing the financial
sector. Last November there was a series of unprecedented bankruptcies of
which Hokkaido Takushoku (Japan's tenth-largest bank) and Yamaichi Securities
(one of Japan's "big four" brokers) were the most prominent. Japanese bond
yields recently reached an all-time low of 1.3% but, although the economy is
awash with money, there is a worsening credit crunch as banks rein in their
lending. As bank lending declined, the scarcity of long-term capital led to
lower capital equipment orders, and corporate expenditure programs have been
put on hold.
Our strategy has been to underweight the Japanese market in general . . .
The stock market started the year well with investors optimistic that the
worst of the banking crisis was over and that the economy should improve. More
recently, however, prices slipped as economic news remained unremittingly
poor. Our strategy has been to underweight the Japanese market in general and
bias our selections toward the international blue chips such as Sony, NEC, and
Canon, which remain well managed and internationally competitive and offer
reasonable valuations compared with the Japanese market.
Turning to Southeast Asia, stock markets seem to have shrugged off the crisis
and performed better in February and March. However, we know from the Mexican
experience that the secondary effects of a massive currency devaluation may be
slow to emerge but are very traumatic when they eventually arrive. IMF-led
reforms are slow to take effect whereas rapidly rising inflation-which we are
now seeing in the worst-hit Asian economies-is socially and financially
disruptive. Capturing the headlines at the moment is the social unrest in
Indonesia, but countries such as South Korea, Malaysia, and Thailand are also
struggling to bring their economies under control.
Asia's financial crisis was certainly damaging, but not all the economies were
affected equally by a mix of currency devaluation and financial collapse.
There has been a slowdown in China, but the Chinese renminbi and the Hong Kong
dollar have been stable as the authorities managed to avoid a competitive
devaluation with the rest of the region. Singapore saw its dollar drift a
little against the U.S. dollar but continued to show the economic and
political stability that makes it such an important regional financial center.
Our investment strategy for the region has been to avoid almost completely the
worst-hit economies, but we still have small positions in Hong Kong,
Singapore, and Australia that we believe have good long-term potential.
Industry Diversification
Percent of Percent of
Net Assets Net Assets
10/31/97 4/30/98
________________________________________________________________________
Services 27.5% 27.2%
Consumer Goods 20.5 21.3
Finance 16.7 19.6
Capital Equipment 13.9 13.7
Energy 9.1 8.4
Materials 4.0 3.0
Multi-industry 2.5 2.3
All Other 0.1 -
Reserves 5.7 4.5
_________________________________________________________________________
Total 100.0% 100.0%
Latin America
The stock markets of Latin America have been mixed this year. To some degree,
they still carry the emerging market label and are therefore affected when
such markets generally perform poorly. Fiscal reform in Brazil seemed to slow
down earlier in the year, although recent signs have been more encouraging.
Indeed, the abolition of lifetime employment for civil servants was a
significant achievement. The other key issue in Brazil was the large
privatization program where Telebras, the national telecommunications company
and a core holding, is playing a central role. We believe this program will
provide more evidence that telecommunications is a growth business in Brazil
and confirm that Telebras looks inexpensive compared with similar companies
throughout the world.
In Mexico, the market was unexciting, but the economy itself made progress and
inflation is in slow but steady decline. The immediate problem was a
deterioration in the trade balance, partly caused by a weak oil price, but a
lower peso should help matters here.
INVESTMENT POLICY AND OUTLOOK
Our investment strategy has been based on a geographical allocation of about
two-fifths of assets in Europe and the same in the U.S., slightly more than
10% in the Pacific, and the balance in Latin America with a small cash
reserve. While some competitors have higher European and U.S. exposure, we
believe our strategy makes more sense given recent frothiness in both areas
and the depressed conditions of the Pacific markets, Japan in particular.
We are maintaining our bias toward quality growth stocks even though a number
of them trailed the index during this strong bull run in Europe. We believe
that the virtues of steady growth will be more apparent particularly if the
prospects for worldwide economic growth moderate from here. We still have
great confidence in the long-term future of Latin America and believe that
other emerging markets, such as those in Eastern Europe, should be
increasingly represented in the portfolio.
Looking back, there was a remarkable divergence in performance between the
stock markets of the U.S. and Europe on one hand and those of the Pacific and
Latin America on the other. This divergence looks unsustainable over the
longer term, and Europe and the U.S. could be due for some form of correction.
Therefore, we believe our more broadly diversified regional diversification
and accent on growth stocks will continue to reward investors over time.
Respectfully submitted,
Martin G. Wade
President
May 22, 1998
T. Rowe Price Global Stock Fund
Portfolio Highlights
Twenty-Five Largest Holdings
Percent of
Net Assets
4/30/98
________________________________________________________________________
National Westminster Bank, United Kingdom 1.5%
Royal Dutch Petroleum, Netherlands 1.2
SmithKline Beecham, United Kingdom 1.2
Novartis, Switzerland 1.1
ING Groep, Netherlands 1.0
________________________________________________________________________
Wolters Kluwer, Netherlands 1.0
Nestle, Switzerland 0.9
Diageo, United Kingdom 0.9
Roche Holdings, Switzerland 0.8
Travelers Group, United States 0.8
________________________________________________________________________
GE, United States 0.8
Glaxo Wellcome, United Kingdom 0.8
Shell Transport & Trading, United Kingdom 0.8
Kingfisher, United Kingdom 0.8
Mobil, United States 0.8
________________________________________________________________________
Telecomunicacoes Brasileiras (Telebras), Brazil 0.7
Bristol-Myers Squibb, United States 0.7
Eaux Cie Generale, France 0.7
AlliedSignal, United States 0.7
Freddie Mac, United States 0.7
_________________________________________________________________________
Reed International, United Kingdom 0.7
Orkla, Norway 0.7
Warnaco Group, United States 0.6
Danaher, United States 0.6
Tyco International, United States 0.6
________________________________________________________________________
Total 21.1%
T. Rowe Price Global Stock Fund
Performance Comparison
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index.
The index return does not reflect expenses, which have been deducted from the
fund's return.
Global Stock Fund
As of 4/30/98
Lipper Global Global
MSCI World Index Funds Average Stock Fund
10/29/93 $ 10,000 $10,000 $10,000
12/29/95 10,000 10,000 10,000
4/96 10,666 10,942 10,890
4/97 11,821 11,964 12,287
4/98 15,311 15,193 15,705
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.
Periods Ended Since Inception
4/30/98 1 Year Inception Date
_____________________________________________________________________
Global Stock Fund 27.81% 21.34% 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
For a share outstanding throughout each period
Financial Highlights
6 Months Year 12/29/95
Ended Ended Through
4/30/98 10/31/97 10/31/96
NET ASSET VALUE
Beginning of period $ 13.01 $ 11.35 $ 10.00
Investment activities
Net investment income 0.04* 0.06** 0.05**
Net realized and
unrealized gain (loss) 2.24 1.84 1.30
Total from
investment activities 2.28 1.90 1.35
Distributions
Net investment income (0.06) (0.06) -
Net realized gain (0.53) (0.18) -
Total distributions (0.59) (0.24) -
NET ASSET VALUE
End of period $ 14.70 $ 13.01 $ 11.35
_________________________________________+
Ratios/Supplemental Data
Total return 18.29%* 16.98%** 13.50%**
Ratio of expenses to
average net assets 1.20%*! 1.30%** 1.30%**!
Ratio of net investment
income to average
net assets 0.69%*! 0.68%** 0.88%**!
Portfolio turnover rate 24.3% 41.8% 50.0%!
Average commission
rate paid $ 0.0146 $ 0.0015 $ 0.0026
Net assets, end of period
(in thousands) $ 42,125 $ 32,020 $ 14,916
* Excludes expenses in excess of a 1.20% voluntary expense limitation in
effect through 10/31/99.
**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, 1998
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) 774 $ 19
Banco Frances del Rio de la Plata
ADR (USD) * 675 20
Perez Companc (Class B) 4,934 30
Telefonica de Argentina (Class B) ADR (USD)1,380 53
YPF Sociedad Anonima (Class D) ADR (USD) 2,878 100
Total Argentina (Cost $196) 222
AUSTRALIA 1.2%
Common Stocks 1.1%
Australian Gas Light Company 5,135 38
Brambles Industries 1,000 21
Broken Hill Proprietary 4,392 43
Colonial Limited 4,000 14
Commonwealth Bank of Australia 3,836 46
Fosters Brewing Group 6,000 13
Goodman Fielder 9,000 14
John Fairfax Holdings 12,000 22
Lend Lease 1,633 37
National Australia Bank 2,088 30
News Corporation 7,919 53
Publishing & Broadcasting 4,400 21
Tabcorp Holdings 4,500 25
Telstra, Installment Receipts, 11/17/98 12,375 29
Westpac Bank 6,200 42
Woodside Petroleum 4,000 26
474
Preferred Stocks 0.1%
News Corporation 3,130 17
Sydney Harbour Casino Holdings 18,000 13
30
Total Australia (Cost $476) 504
BELGIUM 0.8%
Common Stocks 0.8%
Dexia 139 $ 19
Generale de Banque 137 79
Generale de Banque, VVPR Strip * 7 0
Kredietbank 375 212
UCB 9 43
Total Belgium (Cost $205) 353
BRAZIL 1.8%
Common Stocks 0.3%
Eletrobras 699,100 29
Pao de Acucar GDS (USD) 1,000 27
Unibanco GDR (USD) 693 27
Usiminas ADR (USD) 2,290 16
White Martins 3,921 6
105
Preferred Stocks 1.5%
Banco Bradesco 3,059,426 28
Banco Itau 31,000 21
Brahma 32,654 21
Brasmotor 23,775 3
Cia Cimento Portland Itau 28,000 6
Cia Energetica Minas Gerais 501,000 24
Cia Energetica Minas Gerais ADR (144a) (USD)150 7
Cia Energetica Minas Gerais ADR,
Sponsored, Nonvoting (USD) 392 19
Cia Tecidos Norte de Minas 23,000 6
Encorpar * 23,000 0
Pao de Acucar GDS (USD) 190 5
Petrol Brasileiros 209,720 53
Telecomunicacoes Brasileiras ADR (USD) 2,555 311
Telecomunicacoes de Minas Gerais (Class B)73,905 12
Telecomunicacoes de Sao Paulo 225,887 77
Telecomunicacoes do Rio de Janeiro 81,654 13
Unibanco, Units (Each unit consists
of 1 preferred share and
1 Unibanco Holdings (Class B) share) 351 $ 0
Usiminas 2,936 19
Usiminas ADR (USD) 1,257 9
634
Total Brazil (Cost $642) 739
CANADA 0.8%
Common Stocks 0.8%
Alcan Aluminum 1,080 35
Fairfax Financial * 500 188
Royal Bank of Canada 430 25
Royal Bank of Canada (USD) 1,300 78
Total Canada (Cost $235) 326
CHILE 0.1%
Common Stocks 0.1%
Chilectra ADR (144a) (USD) 584 16
Compania Cervecerias Unidas ADS (USD) 200 5
Enersis ADS (USD) 496 15
Santa Isabel ADR (USD) * 113 2
Total Chile (Cost $37) 38
CHINA 0.2%
Common Stocks 0.2%
Huaneng Power International (Class N)
ADR (USD) * 3,100 68
Total China (Cost $57) 68
CZECH REPUBLIC 0.0%
Common Stocks 0.0%
SPT Telecom * 40 6
Total Czech Republic (Cost $5) 6
DENMARK 0.2%
Common Stocks 0.2%
Den Danske Bank 260 $ 32
Tele Danmark (Class B) 80 7
Unidanmark (Class A) 280 23
Total Denmark (Cost $39) 62
FINLAND 0.3%
Common Stocks 0.3%
Nokia (Class A) 1,240 83
Nokia ADR (USD) 800 54
Total Finland (Cost $62) 137
FRANCE 5.3%
Common Stocks 5.3%
AXA 1,113 131
Accor 126 34
Alcatel Alsthom 655 122
Canal Plus 180 31
Carrefour 112 64
Cie de St. Gobain 602 100
Credit Commercial de France 387 31
Danone 380 90
Dexia France, Bearer 110 13
Eaux Cie Generale 1,607 299
Elf Aquitaine 612 80
GTM Entrepose 210 17
LVMH 79 16
L'Oreal 64 31
Lafarge 330 31
Lafarge, New * 27 2
Lapeyre 404 31
Legrand 150 40
Pathe 117 25
Pinault Printemps 321 239
Primagaz 130 11
Promodes 30 14
Sanofi 955 $ 116
Schneider 1,705 128
Societe Generale 373 78
Sodexho Alliance 780 143
Television Francaise 523 74
Total (Class B) 2,013 239
Total France (Cost $1,583) 2,230
GERMANY 3.4%
Common Stocks and Warrants 3.2%
Allianz 370 114
Bayer 1,972 88
Bayerische Hypotheken und Wechsel Bank 1,489 85
Bayerische Vereinsbank 1,073 82
Bilfinger & Berger 490 16
Buderus 30 14
Commerzbank 680 26
Deutsche Bank 1,668 128
Deutsche Telekom 3,156 80
Dresdner Bank 1,587 86
Dresdner Bank, Warrants, 4/30/02 * 1,201 30
Gehe 2,160 112
Hoechst 610 25
Hornbach Baumarkt 120 5
Mannesmann 67 53
Rhoen Klinikum 317 33
SAP 290 137
Siemens 703 41
Veba 2,160 143
Volkswagen 61 49
1,347
Preferred Stocks 0.2%
Fielmann 120 4
Fresenius 100 24
Hornbach Holdings 230 22
SAP 80 40
90
Total Germany (Cost $1,125) 1,437
HONG KONG 1.1%
Common Stocks and Warrants 1.1%
CLP Holdings 9,000 $ 43
Cheung Kong Holdings 4,000 27
Dao Heng Bank Group 10,000 30
HSBC Holdings 800 23
Hang Seng Bank 4,000 34
Henderson Land Development 8,000 36
Hong Kong and China Gas 18,700 25
Hong Kong and China Gas, Warrants,
9/30/99 * 850 0
Hong Kong Land Holdings (USD) 13,575 19
Hutchison Whampoa 18,000 111
New World Development 15,286 43
Sun Hung Kai Properties 7,000 42
Swire Pacific (Class A) 9,000 45
Total Hong Kong (Cost $623) 478
ITALY 2.9%
Common Stocks 2.9%
Assicurazioni Generali 3,480 105
Banca Commerciale Italiana 5,000 25
Banca di Roma * 46,000 85
Credito Italiano 30,825 162
ENI 20,609 138
Gucci Group (USD) 635 30
IMI 4,000 65
Industrie Natuzzi ADR (USD) 1,000 26
Istituto Nazionale delle Assicurazioni 9,000 27
Italgas 4,600 21
Mediolanum 1,846 55
Rinascente 2,000 20
Telecom Italia * 32,440 243
Telecom Italia Mobile 38,000 217
Total Italy (Cost $781) 1,219
JAPAN 9.2%
Common Stocks 9.2%
Advantest 330 $ 22
Alps Electric 3,000 31
Amada 5,000 20
Canon 11,000 260
Citizen Watch 4,000 27
DDI 10 25
Daifuku 1,000 4
Daiichi Pharmaceutical 7,000 100
DaiNippon Screen Manufacturing 4,000 19
Daiwa House 5,000 40
Denso 9,000 155
East Japan Railway 14 70
Fanuc 1,200 44
Hitachi 11,000 79
Hitachi Zosen 7,000 11
Honda Motor 1,000 36
Inax 3,000 11
Ito-Yokado 3,000 155
Kao 5,000 73
Kokuyo 3,000 51
Komatsu 5,000 23
Komori 2,000 34
Kuraray 5,000 42
Kyocera 2,000 105
Makita 4,000 44
Marui 7,000 111
Matsushita Electric Industrial 9,000 144
Mitsubishi 7,000 53
Mitsubishi Heavy Industries 28,000 104
Mitsui Fudosan 14,000 128
Murata Manufacturing 3,000 88
NEC 19,000 214
National House Industrial 1,000 8
Nippon Telephone & Telecom 7 61
Nomura Securities 10,000 122
Pioneer Electronic 3,000 $ 49
Sangetsu 1,000 13
Sankyo 7,000 174
Sega Enterprises 1,000 17
Sekisui Chemical 8,000 44
Sekisui House 5,000 39
Seven Eleven Japan 1,000 67
Sharp 3,000 24
Shin-Etsu Chemical 5,000 97
Shiseido 3,000 40
Sony 2,400 200
Sumitomo 11,000 63
Sumitomo Electric Industries 13,000 155
Sumitomo Forestry 3,000 18
TDK 2,000 158
Teijin 4,000 11
Tokio Marine & Fire Insurance 3,000 33
Tokyo Electronics 1,000 39
Tokyo Steel Manufacturing 2,300 10
Toppan Printing 5,000 59
Uny 3,000 48
Total Japan (Cost $4,636) 3,872
MALAYSIA 0.0%
Common Stocks 0.0%
Berjaya Sports Toto 4,000 9
Total Malaysia (Cost $18) 9
MEXICO 1.0%
Common Stocks 1.0%
Cemex (Class B) * 3,000 18
Cemex ADS (USD) * 5,000 49
Cifra (Class V) ADR (USD) 250 4
Fomentos Economico Mexicano (Class B) * 4,230 31
Gruma (Class B) * 4,826 11
Gruma (Class B) ADS (144a) (USD) * 1,028 10
Grupo Financiero Banamex (Class B) * 6,490 $ 20
Grupo Industrial Maseca (Class B) 12,000 9
Grupo Modelo (Class C) 3,000 28
Grupo Televisa ADR (USD) * 323 13
Kimberly-Clark Mexico (Class A) 7,721 38
Panamerican Beverages (Class A) (USD) 1,670 67
TV Azteca ADR (USD) 1,100 21
Telefonos de Mexico (Class L) ADR (USD) 1,680 95
Total Mexico (Cost $332) 414
NETHERLANDS 6.0%
Common Stocks and Warrants 6.0%
ABN Amro Holdings 4,766 116
ASM Lithography * 250 23
Ahold 2,031 63
Akzo Nobel 130 27
Baan Company * 1,258 55
Baan Company (USD) * 760 34
CSM 1,778 96
Elsevier 11,737 177
Fortis Amev 2,270 133
ING Groep 6,280 408
ING Groep, Warrants, 3/15/01 * 1,526 28
Koninklijke PTT Nederland 588 30
Numico 1,250 42
Otra 340 6
Philips Electronics 670 59
Polygram 2,655 110
Royal Dutch Petroleum 9,480 523
Unilever 2,934 209
Wolters Kluwer * 3,078 402
Total Netherlands (Cost $2,071) 2,541
NEW ZEALAND 0.1%
Common Stocks 0.1%
Fletcher Challenge Building 5,535 11
Fletcher Challenge Energy 4,330 15
Telecom Corporation of New Zealand 5,800 $ 28
Telecom Corporation of New Zealand,
Installment Receipts, 3/31/99 * 2,000 5
Total New Zealand (Cost $67) 59
NORWAY 1.1%
Common Stocks 1.1%
Bergesen (Class A) 380 8
Norsk Hydro 3,250 162
Orkla (Class A) 2,333 277
Saga Petroleum (Class B) 400 7
Total Norway (Cost $350) 454
PANAMA 0.0%
Common Stocks 0.0%
Banco Latinoamericano de Exportaciones
(Class E) (USD) 182 7
Total Panama (Cost $8) 7
PERU 0.0%
Common Stocks 0.0%
Credicorp (USD) 473 8
Telefonica del Peru (Class B) ADR (USD) 419 9
Total Peru (Cost $18) 17
PORTUGAL 0.2%
Common Stocks 0.2%
Jeronimo Martins 2,135 100
Total Portugal (Cost $29) 100
RUSSIA 0.1%
Common Stocks 0.1%
Lukoil ADR (USD) 120 8
Rao Gazprom ADS (USD) * 868 16
Total Russia (Cost $25) 24
SINGAPORE 0.2%
Common Stocks 0.2%
Overseas Union Bank 3,400 $ 13
Singapore Press 4,593 51
Singapore Telecommunications 10,000 17
United Overseas Bank 4,000 19
Total Singapore (Cost $156) 100
SOUTH KOREA 0.1%
Common Stocks and Rights 0.1%
Samsung Electronic 518 28
Samsung Electronic, Rights, 6/2/98 * 41 1
Total South Korea (Cost $37) 29
SPAIN 1.5%
Common Stocks and Rights 1.5%
Argentaria Banca de Espana 510 43
Banco Bilbao Vizcaya 900 46
Banco Popular Espanol 663 54
Banco Santander 2,792 148
Empresa Nacional de Electricidad 3,466 84
Gas Natural 685 44
Iberdrola 3,402 55
Repsol 933 51
Telefonica de Espana 2,773 116
Telefonica de Espana, Rights, 5/7/98 * 2,773 2
Total Spain (Cost $397) 643
SWEDEN 2.1%
Common Stocks 2.1%
ABB (Class A) 4,330 70
Astra (Class B) 10,940 218
Atlas Copco (Class B) 2,180 64
Electrolux (Class B) 1,370 127
Esselte (Class B) 500 12
Granges 350 $ 6
Hennes and Mauritz 2,690 140
Nordbanken Holding 19,523 144
Sandvik (Class A) 560 16
Sandvik (Class B) 2,165 62
Scribona (Class B) 440 6
Total Sweden (Cost $615) 865
SWITZERLAND 4.4%
Common Stocks 4.4%
ABB 70 115
Adecco 326 142
Credit Suisse Group 600 132
Nestle 200 388
Novartis 271 448
Roche Holdings * 35 355
Schweizerischer Bankverein 350 121
Union Bank of Switzerland 80 129
Total Switzerland (Cost $1,405) 1,830
THAILAND 0.1%
Common Stocks 0.1%
Thai Farmers Bank * 16,000 37
Total Thailand (Cost $37) 37
UNITED KINGDOM 11.0%
Common Stocks 11.0%
Abbey National 8,000 150
Asda Group 24,000 80
BG 7,058 38
British Petroleum 7,000 111
Cable & Wireless 16,000 183
Cadbury Schweppes 11,000 161
Caradon 17,700 58
Centrica * 4,000 7
Compass Group 5,000 86
David S. Smith 9,000 $ 34
Diageo 30,326 363
Electrocomponents 5,000 49
GKN 1,000 29
Glaxo Wellcome 12,000 339
Heywood Williams Group 1,000 4
Hillsdown Holdings 5,000 15
John Laing (Class A) 4,000 24
Kingfisher 17,400 316
Ladbroke Group 12,000 66
National Westminster Bank 31,000 620
Rank Group 13,000 84
Reed International 32,000 286
Rio Tinto 8,000 115
Rolls Royce 5,000 23
Safeway 14,000 84
Shell Transport & Trading 44,000 328
SmithKline Beecham 41,200 492
Tesco 13,000 123
Tomkins 34,000 200
United News & Media 12,400 168
Total United Kingdom (Cost $3,496) 4,636
VENEZUELA 0.0%
Common Stocks 0.0%
Compania Anonima Nacional Telefonos de
Venezuela (Class D) ADR (USD) 581 19
Total Venezuela (Cost $21) 19
UNITED STATES 39.8%
Common Stocks 39.8%
ACE Limited 4,400 167
Adobe Systems 1,900 95
Aetna 800 65
AirTouch Communications * 2,800 149
AlliedSignal 6,800 298
American Home Products 1,100 $ 102
Analog Devices * 4,000 156
Ascend Communications * 1,700 74
Atlantic Richfield 2,700 211
AutoZone * 3,000 91
BMC Software * 1,600 150
BANC ONE 1,460 86
BankBoston 1,100 119
Biogen * 2,700 120
Bristol-Myers Squibb 2,900 307
CBS 5,300 189
CVS 1,842 136
Cadence Design Systems * 3,800 138
Carnival ADR (Class A) 2,000 139
Cellular Communications International * 3,150 139
Cendant * 4,500 113
Centocor * 2,400 101
Chase Manhattan 1,100 152
Cisco Systems * 1,350 99
Citicorp 900 135
Colgate-Palmolive 1,500 135
Cooper Industries 1,500 100
Crescent Real Estate Equities, REIT 5,800 198
Danaher 3,700 266
Disney 1,500 186
EMC * 2,400 111
Eli Lilly 1,300 90
Emerson Electric 2,200 140
Fannie Mae 3,300 198
First Data 4,500 152
First Union 3,000 181
Freddie Mac 6,200 287
GE 4,000 340
GTE 2,400 140
Galileo International 4,200 170
General Nutrition * 1,500 54
Gillette 900 104
Great Lakes Chemical 2,000 $ 101
Guidant 1,200 80
H&R Block 2,000 90
Halliburton 1,900 105
Hasbro 3,500 129
HealthSouth * 7,300 220
Hewlett-Packard 1,500 113
Hilton 4,500 144
Honeywell 2,600 242
Hubbell (Class B) 2,700 133
Ikon Office Solutions 3,100 75
Intel 2,600 210
Johnson & Johnson 2,900 207
Kimberly-Clark 2,500 127
MCI 3,600 181
Mattel 1,500 57
Maxim Integrated Products * 2,000 81
McDonald's 800 50
Mellon Bank 700 50
Merck 1,800 217
Meredith 2,800 120
Microsoft * 2,400 216
Mirage Resorts * 2,000 44
Mobil 4,000 316
NationsBank 2,437 185
Network Associates * 900 62
Newell 2,700 130
Newmont Mining 3,400 109
Norwest 5,300 210
Omnicom 4,100 194
Oracle * 5,300 137
PacifiCare Health Systems (Class B) * 200 14
Parametric Technology * 5,200 166
Partnerre 3,400 170
PepsiCo 4,200 167
Pfizer 1,600 182
Philip Morris 6,500 243
Procter & Gamble 800 $ 66
Quorum Health Group * 4,400 141
Raytheon (Class B) 1,900 108
Rite Aid 5,000 161
SBC Communications 4,400 182
SLM Holding 3,000 128
Safeway * 6,300 241
Sara Lee 1,800 107
Service Corporation International 1,400 58
Sprint 1,500 102
St. John Knits 3,400 152
Starwood Hotels & Resorts, REIT 3,697 186
Synopsys * 2,400 103
Teleflex 3,400 144
Tellabs * 2,000 142
Tenet Healthcare * 4,200 157
Teradyne * 1,300 47
Time Warner 2,500 196
Total Renal Care * 3,200 106
Travelers Group 3,449 211
Travelers Property Casualty (Class A) 3,300 139
Tribune 3,100 205
Tyco International 4,832 263
UNUM 3,100 167
USA Waste Services * 4,800 235
USX-Marathon 4,600 165
United HealthCare 3,000 211
Wal-Mart 3,900 197
Warnaco Group (Class A) 6,300 266
Warner-Lambert 1,200 227
Wellpoint Health Networks * 2,000 144
WorldCom * 3,400 145
Total United States (Cost $13,135) 16,762
SHORT-TERM INVESTMENTS 4.8%
Money Market Funds 4.8%
Reserve Investment Fund, 5.65% 2,003,611 $ 2,004
Total Short-Term Investments (Cost $2,004) 2,004
Total Investments in Securities
100.3% of Net Assets (Cost $34,923) $ 42,241
Other Assets Less Liabilities (116)
NET ASSETS $ 42,125
____________
Net Assets Consist of:
Accumulated net investment income - net
of distributions $ 134
Accumulated net realized gain/loss - net
of distributions 707
Net unrealized gain (loss) 7,319
Paid-in-capital applicable to 2,865,145
shares of $0.01 par value capital stock
outstanding; 2,000,000,000 shares
of the Corporation authorized 33,965
NET ASSETS $ 42,125
____________
NET ASSET VALUE PER SHARE $ 14.70
____________
* Non-income producing
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 0.08% of net assets.
ADR American depository receipt
ADS American depository share
GDR Global depository receipt
GDS Global depository share
REIT Real Estate Investment Trust
USD U.S. dollar
VVPR Entitles holders to a reduced rate of foreign withholding tax.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Global Stock Fund
Unaudited
Statement of Operations
In thousands
Unaudited
6 Months
Ended
4/30/98
Investment Income
Income
Dividend (net of foreign taxes of $26) $ 290
Interest 52
Total income 342
Expenses
Custody and accounting 67
Shareholder servicing 63
Investment management 41
Registration 16
Prospectus and shareholder reports 12
Legal and audit 9
Directors 3
Miscellaneous 6
Total expenses 217
Net investment income 125
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 762
Foreign currency transactions (7)
Net realized gain (loss) 755
Change in net unrealized gain or loss
Securities 5,256
Other assets and liabilities
denominated in foreign currencies (1)
Change in net unrealized gain or loss 5,255
Net realized and unrealized gain (loss) 6,010
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 6,135
____________
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 Year
Ended Ended
4/30/98 10/31/97
Increase (Decrease) in Net Assets
Operations
Net investment income $ 125 $ 164
Net realized gain (loss) 755 1,315
Change in net unrealized gain or loss 5,255 1,342
Increase (decrease) in net assets
from operations 6,135 2,821
Distributions to shareholders
Net investment income (153) (85)
Net realized gain (1,355) (254)
Decrease in net assets from distributions(1,508) (339)
Capital share transactions*
Shares sold 12,889 23,635
Distributions reinvested 1,466 329
Shares redeemed (8,877) (9,342)
Increase (decrease) in net assets
from capital share transactions 5,478 14,622
Net Assets
Increase (decrease) during period 10,105 17,104
Beginning of period 32,020 14,916
End of period $ 42,125 $ 32,020
___________________________
*Share information
Shares sold 933 1,846
Distributions reinvested 117 28
Shares redeemed (647) (726)
Increase (decrease) in shares outstanding 403 1,148
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Global Stock Fund
Unaudited
April 30, 1998
Notes to Financial Statements
T. Rowe Price Global Stock Fund
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.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
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.
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.
Investments in open-end mutual funds are valued at the closing net asset value
per share of the mutual fund on the day of valuation.
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.
Premiums and Discounts Premiums and discounts on debt securities are
amortized for both financial reporting and tax purposes.
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.
Securities Lending The fund lends its securities to approved brokers to earn
additional income and receives cash and U.S. Treasury securities as collateral
against the loans. Cash collateral received is invested in a money market
pooled account by the fund's lending agent. Collateral is maintained over the
life of the loan in an amount not less than 100% of the value of loaned
securities. Although risk is mitigated by the collateral, the fund could
experience a delay in recovering its securities and a possible loss of income
or value if the borrower fails to return them. At April 30, 1998, the value of
loaned securities was $1,019,000; aggregate collateral consisted of $1,059,000
in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $12,446,000 and $8,466,000, respectively, for the six
months ended April 30, 1998.
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, 1998, the aggregate cost of investments for federal income tax
and financial reporting purposes was $34,923,000 and net unrealized gain
aggregated $7,318,000 of which $8,822,000 related to appreciated investments
and $1,504,000 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, of which $11,000 was payable at April
30, 1998. 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, 1998, and for the six months then ended,
the effective annual group fee rate was 0.32%. 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, 1999, which would cause the
fund's ratio of expenses to average net assets to exceed 1.20%. Thereafter,
through October 31, 2001, 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 1.20%. Pursuant to this agreement,
$80,000 of management fees were not accrued by the fund for the six months
ended April 30, 1998. Additionally, $212,000 of unaccrued management fees and
$111,000 of other expenses borne by the manager, related to a previous expense
limitation agreement, are 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. (TRPS) is the fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the fund. T. Rowe Price Retirement
Plan Services, Inc., provides subaccounting and recordkeeping services for
certain retirement accounts invested in the fund. The fund incurred expenses
pursuant to these related party agreements totaling approximately $100,000 for
the six months ended April 30, 1998, of which $18,000 was payable at
period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and other
accounts managed by T. Rowe Price and its affiliates and are not available to
the public. The Reserve Funds pay no investment management fees. Distributions
from the Reserve Funds to the fund for the six months ended April 30, 1998,
totaled $50,000 and are reflected as interest income in the accompanying
Statement of Operations.
During the six months ended April 30, 1998, the fund, in the ordinary course
of business, placed security purchase and sale orders aggregating $260,000
with certain affiliates of the manager and paid commissions of $1,000 related
thereto.
T. Rowe Price Shareholder Services
Investment Services And Information
Knowledgeable Service Representatives
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
Account Services
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access(registered mark) and the T.
Rowe Price Web site on the Internet. Address: www.troweprice.com
Discount Brokerage*
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates.
Investment Information
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning Kit.
*A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
T. Rowe Price Mutual Funds
Stock Funds
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500*
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications**
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons***
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value***
Spectrum Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
Bond Funds
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Bond!
International Bond
Money Market FUNDS!!
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
Blended Asset Funds
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. Rowe Price No-Load
Variable Annuity
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Formerly named Equity Index.
** Formerly the closed-end New Age Media Fund. Converted to open-end status
on 7/28/97.
*** Closed to new investors.
! Formerly named Global Government Bond.
!! Neither the funds nor their share prices are insured or guaranteed by
the U.S. government.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY.
T. Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(registered mark):
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 4/30/98
