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T. Rowe Price
- --------------------------------------------------------------------------------
Semiannual Report
European Stock Fund
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April 30, 1999
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REPORT HIGHLIGHTS
================================================================================
EUROPEAN STOCK FUND
* European markets rallied early in the six months ended April 30, but
slowed after January amid fragile economic growth and war in the
Balkans.
* The euro fell considerably after its January 1 introduction, lowering
fund returns for U.S. investors.
* The fund posted a strong, double-digit return during the six-month
period, which contributed to above-average 12-month results.
* Although holdings in steady-growing companies weakened recently, the
portfolio's country exposure helped support good short-term returns.
* We expect European companies to steadily improve their global
com-petitiveness through aggressive cost-cutting and mergers and
acquisitions.
================================================================================
FELLOW SHAREHOLDERS
- --------------------------------------------------------------------------------
After struggling through a Russian economic crisis last summer and autumn,
many European stock markets recovered nicely in the six months ended April 30.
Although weakness in the new euro currency detracted from returns for U.S.
shareholders, many core European markets produced double-digit gains in U.S.
dollar terms.
================================================================================
PERFORMANCE COMPARISON
- ----------------------
Periods Ended 4/30/99 6 Months 12 Months
- --------------------- -------- ---------
European Stock Fund 10.04% 6.06%
MSCI Europe Index 10.98 5.97
Lipper European Funds Average 8.95 -0.20
================================================================================
<PAGE>
Your fund posted a 10.04% return for the past six months -- slightly behind
the MSCI Europe Index but comfortably ahead of the Lipper European Funds
Average. These solid results helped the fund achieve a positive 6.06% 12-month
gain, exceeding both the index and the Lipper average. Our strategy of
purchasing solid companies with steady growth characteristics was an important
contributor to this longer-term outperformance despite weakness more recently,
as these core holdings generally held up very well during last year's volatile
market conditions.
In the European markets, the last six months can be broken down into two
distinct periods. The first was a strong recovery from last October's lows. A
combination of factors -- including falling interest rates, improved liquidity,
strong U.S. growth, enhanced prospects in the Far East, and anticipation
surrounding the launch of the euro -- culminated in a sharp rally, peaking in
early January. Since then, however, the market environment has weakened. Recent
economic growth throughout Europe has been anemic, and Germany caused
significant concern by trying to exert political influence on the European
Central Bank (ECB). These concerns, in addition to worries surrounding the
Balkans conflict, have led to a weaker euro and, therefore, flat market
performance in U.S. dollar terms.
================================================================================
MARKET PERFORMANCE
- ------------------
Six Months Local Local Currency U.S.
Ended 4/30/99 Currency vs. U.S. Dollars Dollars
- ------------- -------- ---------------- -------
Belgium 8.48% -10.41% -2.82%
France 24.33 -10.37 11.43
Germany 16.48 -10.41 4.35
Italy 25.70 -10.49 12.51
Netherlands 26.16 -10.34 13.12
Spain 15.08 -10.27 3.26
Sweden 29.52 -7.06 20.38
Switzerland 13.74 -11.06 1.16
United Kingdom 21.46 -3.86 16.77
Source: FAME Information Services, Inc.; based on MSCI indices.
================================================================================
<PAGE>
Economic growth continues to be uneven in the major economies of Europe. At
the top end, France and Spain are growing 2% to 3% per year, driven by strong
domestic demand. Germany and Italy, however, are only growing 1% to 1.5% per
year. These nations have suffered particularly from reduced global demand in the
manufacturing sector and slow consumer spending. In Germany, the recently
elected government lurched from policy blunder to policy blunder, resulting in
widespread criticism and unpopularity. The finance minister resigned in March
after numerous confrontations: first, over tax policy with domestic companies,
who responded by threat ening to relocate their operations; and second, over
monetary policy with the ECB, which was keen to establish its independent
credentials. His replacement favors a more pragmatic, noninterven-tionist
approach, and, as a result, the ECB was able to cut rates by more than expected,
from 3% to 2.5% during the period. Despite the recent sharp rise in oil prices,
inflationary pressures in Europe have been dampened by high unemployment,
increased corporate competition, and now the transparent pricing of the euro.
================================================================================
IMPACT OF THE EURO
================================================================================
The European Union's new single currency, the euro, began trading on
January 1, 1999. In the short term, contrary to popular expectations, the euro
has been weak for three main reasons. First, economic growth in Euroland has
been lower than forecast, prompting the European Central Bank to cut interest
rates. At the same time, the U.S. economy has grown faster than anticipated, and
therefore the interest rate differential favored the U.S. dollar. Second,
political fighting between the German finance minister and the ECB undermined
confidence in the euro. This has now been resolved in favor of the ECB. Third,
the Balkans conflict on Europe's doorstep led investors to prefer U.S. dollars,
typically considered a "safe haven" investment. These factors led to a fall of
9% in the currency's value.
In the longer term, the move to a single currency is expected to bring
several benefits to Europe's economy and markets, such as currency certainty,
low inflation, lower costs, and increased competition, and hence more efficient
capital markets. To survive in such an environment, companies must either have
the lowest cost base in their industry or a sustainable franchise. Many have
examined their competitive positions and how to improve them; the unprecedented
amount of mergers and acquisitions in the past six months, particularly among
banks, pharmaceuticals, and telecommunication firms, bears testimony to this. In
telecoms, Olivetti launched a highly leveraged hostile takeover for TELECOM
ITALIA, whose response was to try to merge with DEUTSCHE TELEKOM. Mannesmann
snapped up VEBA's fixed line assets in Germany (OtelO), and CABLE & WIRELESS put
their U.K. mobile-phone operation up for sale. The acquisition by Britain's
Vodafone of Airtouch in the U.S. will provide a powerful global operator of
mobile systems.
<PAGE>
The pharmaceutical sector saw a flurry of announcements almost within a
week of one another. Sweden's ASTRA merged with Britain's Zeneca, SANOFI and
Synthelabo in France will unite, while HOECHST and Rhone-Poulenc want to create
a new drug company called Aventis. The banking sector has been particularly
active, but within national boundaries for now. The merger of BANCO SANTANDER
and BCH in Spain started the ball rolling; this was followed by hostile bids in
Italy for BCI by Unicredito and BANCA DI ROMA by SAN PAOLO IMI. The French
banking sector has been rocked by a hostile bid from BNP for both Paribas and
SOCIETE GENERALE, upsetting a previously agreed-on merger. The fund has
benefited from this activity.
================================================================================
MARKET AND PORTFOLIO REVIEW
================================================================================
In general, the stable growth companies that performed so well for the fund
last period produced a slight drag on fund performance during this most recent
six months. Fortunately, the positive impact of our country weightings helped
support solid returns. Our underweighted position in Germany worked well as that
market performed relatively poorly, while our overweighted position in the
Netherlands was also helpful.
Across Europe, cyclical sectors performed best as investors began to
anticipate a recovery in global economic growth. For example, according to MSCI
industry indexes, metals companies rose 30% to 40% on average, forestry products
24%, and oils 24% in dollar terms. A pickup in underlying demand for technology
products also helped the electronics sector rise strongly. The performance of
telecoms was good overall, but the sector was held back after January by high
valuations. The banking sector advanced as it recovered from fears of a global
liquidity crisis and emerging market debt problems, and as buoyant financial
markets generated large trading and commission income. By comparison,
conservative, steady-growing companies suffered in this environment: business
services, food, and health care companies all declined.
================================================================================
Industry Diversification
================================================================================
Percent of Net Assets
10/31/98 4/30/99
-------- -------
Services 28.7% 30.6%
Finance 21.1 24.3
Consumer Goods 23.7 21.5
Energy 10.6 10.4
Capital Equipment 6.9 8.4
Materials 2.9 2.7
Multi-industry 2.0 0.8
Reserves 4.1 1.3
Total 100.0% 100.0%
================================================================================
<PAGE>
The U.K. was a star performer among the major European countries, and your
fund benefited from a 28% position there. Fears that the domestic economy was
heading into recession were eased by successive cuts in interest rates from 7%
to 5.25% by the Bank of England. There was also growing evidence that consumer
demand had picked up once again. Better fundamentals together with strong
liquidity and low valuations by European standards led to attractive market
performance.
SHELL benefited from the rise in the price of oil from $10 to $16 per
barrel, as well as an increasing internal focus on improving returns and capital
allocation. NATIONAL WESTMINISTER BANK announced good final results with a 34%
rebound in profits from 1997 and return on equity above 17%. Management is
attacking the company's cost base and returning excess capital to shareholders
via share buybacks. KINGFISHER was an excellent performer following its agreed
upon deal with Castorama to establish Europe's largest do-it-yourself home
retailer (also called DIY). As fears of a U.K. recession increased, investors
also liked the company's focus on offering the customer value for money. In
April, it announced a merger with ASDA to create the U.K.'s largest retailer,
with opportunities to cross-sell products, benefit from purchasing synergies,
and establish a platform to compete internationally.
[Geographic Diversification pie chart showing; United Kingdom 28%;
Netherlands 14%; France 14%; Switzerland 9%; Germany 9%; Italy 8%; Sweden 5%;
Other and Reserves 13%.
The NETHERLANDS, in which we have a 14% stake, was also a good performer.
Our addition to stocks such as PHILIPS and ASM LITHOGRAPHY proved timely, as
they zoomed up along with a global recovery in demand for technology products.
Orders improved, as did prices, and profit estimates were revised up
significantly for 1999. Steady growth stocks with high valuations, such as
WOLTERS KLUWER, suffered as investors switched their attention to more cyclical
areas of the market.
The market in France rose in line with Europe's overall gains. There was
much merger and acquisition activity, including the hostile bid by BNP in the
banking sector (discussed in the previous section). Vivendi announced an $8
billion acquisition of US Filter as it saw good growth opportunities in the U.S.
water sector. Pinault Printemps intervened in the hostile bid by LVMH for Gucci
by buying a 40% stake in the latter. We raised our holding in Carrefour -- the
stock had been downgraded for its emerging market exposure but, in our view,
still retains good long-term growth potential. We had a 14% position in France.
<PAGE>
Although our 9% weighting in Germany was lower than the index's, our
holdings were disappointing and hurt relative performance. Rumors surfaced that
banking concern Bayerische Hypo-Und Vereinsbank would have additional trouble
with its property-lending operations in Germany. These statements were
categorically refuted by the bank, and it remains committed to reaching
established return targets and implementing a cost-cutting program. SAP suffered
from a profit warning in the wake of a slump in Japanese and Russian orders last
year, as well as fears that corporations would reduce their Y2K spending in
1999. GEHE, the pharmaceutical wholesaler and retailer, has fallen out of favor
with investors despite good revenue and profit growth across its European
markets. Deutsche Telekom was the top performer in the market after receiving a
boost from a favorable regulatory ruling.
The SWISS market, where we have 9% of net assets, suffered from weakness
among established, steady-growing companies, such as NESTLE and NOVARTIS. Both
posted results that were below expectations. ROCHE'S earnings, however, did not
disappoint. In fact, the company announced good news when the FDA approved its
potential blockbuster antiobesity drug.
ITALY was a hive of activity as hostile bids were launched for Telecom
Italia (by Olivetti) and Gucci (by LVMH). At the moment, the outcome of both
remains very uncertain. We have an 8% stake in Italy.
=============================
After three years of
excellent equity returns,
Europe has taken a breather.
=============================
Among the nations in which we have smaller positions, SPAIN struggled due
to its close links with Latin America and lack of cyclical industry. The
surprise news in January that Santander and BCH were to merge to become one of
the 10 largest companies in Europe proved extremely positive for their
respective share prices. The companies expect profits at the combined entity to
grow by 25% this year and next, and to reach a return on equity of 18% to 20% by
eliminating many duplicated costs.
SWEDEN was a strong performer in Europe. Astra's merger with Zeneca in the
U.K. was well received. The combination now has the scale to compete with the
largest companies in research and development as well as maximize the selling
potential of the U.S. sales force. New compounds and significant cost-cutting
should also help offset revenue losses when the patent on top-selling drug Losec
expires in 2001. The significant rise in ELECTROLUX was driven by a successful
program to improve operating margins, as well as a low valuation and a buoyant
U.S. consumer market for household appliances.
<PAGE>
Finally, Russia experienced a dramatic rally from last summer's turmoil.
Although we retained only a very small holding in the energy sector, its gains
had a positive impact on performance.
================================================================================
OUTLOOK
================================================================================
After three years of excellent equity returns, Europe has taken a breather.
The economy is weaker than anticipated but the recent cut in interest rates and
fall in the value of the euro should ensure some improvement in growth. However,
the need for further supply side reform remains. Many nations in Europe need to
lower taxes, deregulate labor practices, and reduce the obligations of the
state. The recent birth of the euro will intensify the pressure for these
changes.
We expect the wave of mergers and acquisitions sweeping Europe to gather
momentum as companies strive to improve their competitive positions. The past
six months have seen a sharp acceleration of corporate activity by European
companies, both within Europe and overseas. An increasing amount of cross-border
activity within Europe is likely to take place as the advantages of a single
market are realized. In such an environment, we remain committed to favoring
companies that can grow their earnings as a result of their long-term
sustainable business models and stringent cost controls.
Respectfully submitted,
/s/
Martin G. Wade
President
May 21, 1999
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Portfolio Highlights
- --------------------
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
4/30/99
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National Westminster Bank, United Kingdom 4.1%
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Wolters Kluwer, Netherlands 2.6
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INGGroep, Netherlands 2.5
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Kingfisher, United Kingdom 2.4
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Nestle, Switzerland 2.4
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Shell Transport & Trading, United Kingdom 2.3
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Diageo, United Kingdom 2.2
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Telecom Italia, Italy 2.2
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Glaxo Wellcome, United Kingdom 2.2
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SmithKline Beecham, United Kingdom 2.1
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Novartis, Switzerland 1.7
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Nokia, Finland 1.7
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Roche Holdings, Switzerland 1.6
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UBS, Switzerland 1.5
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Fortis, Netherlands 1.5
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Mannesmann, Germany 1.4
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Total, France 1.4
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Reed International, United Kingdom 1.4
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Cable & Wireless, United Kingdom 1.4
<PAGE>
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Hennes and Mauritz, Sweden 1.3
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Vivendi, France 1.3
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Pinault Printemps Redoute, France 1.3
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AstraZeneca Group, Sweden 1.3
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Telecom Italia Mobile, Italy 1.2
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Telefonica de Espana, Spain 1.2
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Total 46.2%
================================================================================
T. Rowe Price European 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.
[SEC Chart shown here]
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 4/30/99 1 Year 3 Years 5 Years Inception Date
- --------------------- ------ ------- ------- --------- ----
European Stock Fund 6.06% 19.90% 18.05% 12.59% 2/28/90
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Unaudited
For a share outstanding throughout each period
Financial Highlights
- --------------------
6 Months Year
Ended Ended
4/30/99 10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 22.38 $ 19.84 $ 16.93 $ 14.35 $ 12.72 $ 11.37
- --------------------------------------------------------------------------------
Investment activities
Net investment income 0.06 0.28 0.25 0.25 0.20 0.14
Net realized and
unrealized gain (loss) 2.03 3.52 3.12 2.79 1.60 1.26
- --------------------------------------------------------------------------------
Total from
investment activities 2.09 3.80 3.37 3.04 1.80 1.40
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.28) (0.25) (0.26) (0.21) (0.12) (0.04)
Net realized gain (2.18) (1.01) (0.20) (0.25) (0.05) (0.01)
- --------------------------------------------------------------------------------
Total distributions (2.46) (1.26) (0.46) (0.46) (0.17) (0.05)
- --------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 22.01 $ 22.38 $ 19.84 $ 16.93 $ 14.35 $ 12.72
Ratios/Supplemental=Data========================================================
Total return* 10.04% 20.12% 20.30% 21.76% 14.41% 12.35%
- --------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.05%+ 1.05% 1.06% 1.12% 1.20% 1.25%
- --------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 0.55%+ 1.39% 1.41% 1.81% 1.75% 1.19%
- --------------------------------------------------------------------------------
Portfolio turnover rate 20.8%+ 26.8% 17.5% 14.1% 17.2% 24.5%
- --------------------------------------------------------------------------------
Net assets, end of
period (in millions) $ 1,507 $ 1,412 $ 984 $ 705 $ 491 $ 337
- --------------------------------------------------------------------------------
* Total return reflects the rate that an investor would have earned on
an investment in the fund during each period, assuming reinvestment of
all distributions.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Unaudited
April 30, 1999
Portfolio of Investments
Shares Value
In thousands
BELGIUM 2.1%
Common Stocks 2.1%
Dexia (EUR) * 18,994 $ 2,921
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Fortis B (EUR) 277,829 9,319
- ----------------------------------------------------------------------------
KBC Bancassurance Holding (EUR) 228,050 14,142
- ----------------------------------------------------------------------------
Societe Europeenne des Satellites
(Class A) (EUR) * 8,000 1,224
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UCB (EUR) * 101,870 4,735
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Total Belgium (Cost $18,444) 32,341
- ----------------------------------------------------------------------------
CZECH=REPUBLIC==0.0%========================================================
Common Stocks 0.0%
SPT Telecom * 11,040 160
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Total Czech Republic (Cost $137) 160
- ----------------------------------------------------------------------------
DENMARK==0.5%===============================================================
Common Stocks 0.5%
Den Danske Bank 29,130 3,354
- ----------------------------------------------------------------------------
Tele Danmark (Class B) 26,500 2,731
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Unidanmark (Class A) 32,380 2,223
- ----------------------------------------------------------------------------
Total Denmark (Cost $5,607) 8,308
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<PAGE>
FINLAND==1.7%===============================================================
Common Stocks 1.7%
Nokia (Class A) (EUR) 323,020 24,944
- ----------------------------------------------------------------------------
Total Finland (Cost $4,955) 24,944
- ----------------------------------------------------------------------------
FRANCE==14.0%===============================================================
Common Stocks 14.0%
AXA (EUR) 109,758 14,169
- ----------------------------------------------------------------------------
Accor (EUR) 6,556 1,728
- ----------------------------------------------------------------------------
Alcatel Alsthom (EUR) 58,078 7,129
- ----------------------------------------------------------------------------
Altran Technologies (EUR) 16,632 3,953
- ----------------------------------------------------------------------------
Carbone Lorraine (EUR) 117,280 6,405
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Carrefour (EUR) 12,680 10,046
- ----------------------------------------------------------------------------
Cie de St. Gobain (EUR) 57,319 9,840
- ----------------------------------------------------------------------------
Credit Commercial de France (EUR) 65,744 $ 6,945
- ----------------------------------------------------------------------------
Danone (EUR) 37,615 10,053
- ----------------------------------------------------------------------------
Dexia France (EUR) 23,420 3,278
- ----------------------------------------------------------------------------
Dexia France, Bearer (EUR) 16,099 2,253
- ----------------------------------------------------------------------------
Elf Aquitaine (EUR) 58,900 9,147
- ----------------------------------------------------------------------------
L'Oreal (EUR) 6,312 4,041
- ----------------------------------------------------------------------------
Lafarge (EUR) 22,776 2,214
- ----------------------------------------------------------------------------
Lapeyre (EUR) 15,300 1,164
- ----------------------------------------------------------------------------
Legrand (EUR) 13,100 3,128
- ----------------------------------------------------------------------------
Pathe (EUR) 2,547 640
<PAGE>
- ----------------------------------------------------------------------------
Pinault Printemps Redoute (EUR) 120,190 19,934
- ----------------------------------------------------------------------------
Sanofi (EUR) 87,154 13,654
- ----------------------------------------------------------------------------
Schneider (EUR) 198,501 12,949
- ----------------------------------------------------------------------------
Societe Generale (EUR) 36,992 6,620
- ----------------------------------------------------------------------------
Sodexho Alliance (EUR) 62,258 10,214
- ----------------------------------------------------------------------------
Television Francaise (EUR) 50,940 9,955
- ----------------------------------------------------------------------------
Total (Class B) (EUR) 154,964 21,216
- ----------------------------------------------------------------------------
Vivendi (EUR) 85,395 19,946
- ----------------------------------------------------------------------------
Total France (Cost $157,038) 210,621
- ----------------------------------------------------------------------------
GERMANY==8.7%===============================================================
Common Stocks 8.1%
Allianz (EUR) 30,830 9,820
- ----------------------------------------------------------------------------
Bayer (EUR) 178,202 7,568
- ----------------------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank (EUR) 221,298 14,424
- ----------------------------------------------------------------------------
Buderus (EUR) 1,150 390
- ----------------------------------------------------------------------------
Deutsche Bank (EUR) 167,845 9,752
- ----------------------------------------------------------------------------
Deutsche Bank, New (EUR) 18,649 1,044
- ----------------------------------------------------------------------------
Deutsche Telekom (EUR) 215,123 8,477
- ----------------------------------------------------------------------------
Dresdner Bank (EUR) 195,344 8,420
- ----------------------------------------------------------------------------
Gehe (EUR) 238,723 10,970
- ----------------------------------------------------------------------------
Hoechst (EUR) 58,510 2,772
- ----------------------------------------------------------------------------
Hornbach Baumarkt (EUR) 14,003 355
- ----------------------------------------------------------------------------
Mannesmann (EUR) 163,570 21,530
<PAGE>
- ----------------------------------------------------------------------------
Rhoen Klinikum (EUR) 31,261 3,137
- ----------------------------------------------------------------------------
SAP (EUR) 27,630 8,844
- ----------------------------------------------------------------------------
Siemens (EUR) 47,952 3,546
- ----------------------------------------------------------------------------
Sixt (EUR) 21,010 $ 1,520
- ----------------------------------------------------------------------------
Veba (EUR) 121,503 6,662
- ----------------------------------------------------------------------------
Volkswagen (EUR) 42,110 2,985
- ----------------------------------------------------------------------------
122,216
- ----------------------------------------------------------------------------
Preferred Stocks 0.6%
Fielmann (EUR) 28,660 1,120
- ----------------------------------------------------------------------------
Fresenius (EUR) 13,210 2,303
- ----------------------------------------------------------------------------
SAP (EUR) 12,680 4,755
- ----------------------------------------------------------------------------
8,178
- ----------------------------------------------------------------------------
Total Germany (Cost $109,339) 130,394
- ----------------------------------------------------------------------------
GREECE==0.4%================================================================
Common Stocks 0.4%
Alpha Credit Bank 7,520 537
- ----------------------------------------------------------------------------
Ergo Bank 13,286 1,160
- ----------------------------------------------------------------------------
Hellenic Telecommunication 93,808 2,176
- ----------------------------------------------------------------------------
Panafon Hellenic Telecom 86,970 2,317
- ----------------------------------------------------------------------------
Total Greece (Cost $4,290) 6,190
- ----------------------------------------------------------------------------
HUNGARY==0.0%===============================================================
Common Stocks 0.0%
EGIS 7,048 143
- ----------------------------------------------------------------------------
Total Hungary (Cost $362) 143
- ----------------------------------------------------------------------------
<PAGE>
IRELAND==0.2%===============================================================
Common Stocks 0.2%
CBT Group ADR (USD) * 131,589 2,040
- ----------------------------------------------------------------------------
Irish Permanent (EUR) 23,668 343
- ----------------------------------------------------------------------------
Total Ireland (Cost $4,536) 2,383
- ----------------------------------------------------------------------------
ITALY==8.1%=================================================================
Common Stocks 8.1%
Assicurazioni Generali (EUR) 221,880 8,637
- ----------------------------------------------------------------------------
Banca Commerciale Italiana (EUR) 467,000 3,843
- ----------------------------------------------------------------------------
Banca di Roma (EUR) 2,005,000 3,304
- ----------------------------------------------------------------------------
Banca Popolare di Brescia (EUR) 83,000 2,854
- ----------------------------------------------------------------------------
Credito Italiano (EUR) 2,590,231 $ 13,134
- ----------------------------------------------------------------------------
ENI (EUR) 2,061,376 13,567
- ----------------------------------------------------------------------------
Gucci Group (USD) 66,103 4,987
- ----------------------------------------------------------------------------
Istituto Nazionale delle Assicurazioni (EUR) 2,345,000 6,193
- ----------------------------------------------------------------------------
Italgas (EUR) 754,943 3,358
- ----------------------------------------------------------------------------
Mediolanum (EUR) 410,000 2,707
- ----------------------------------------------------------------------------
Sao Paolo IMI (EUR) 547,844 8,218
- ----------------------------------------------------------------------------
Telecom Italia (EUR) 3,150,080 33,510
- ----------------------------------------------------------------------------
Telecom Italia Mobile (EUR) 2,933,435 17,478
- ----------------------------------------------------------------------------
Total Italy (Cost $88,276) 121,790
- ----------------------------------------------------------------------------
<PAGE>
NETHERLANDS==14.1%==========================================================
Common Stocks 14.1%
ABN Amro (EUR) 401,662 9,568
- ----------------------------------------------------------------------------
ASM Lithography (EUR) 172,160 7,257
- ----------------------------------------------------------------------------
Ahold (EUR) 338,313 12,562
- ----------------------------------------------------------------------------
Ahrend (EUR) 20,218 393
- ----------------------------------------------------------------------------
Akzo Nobel (EUR) 64,968 2,934
- ----------------------------------------------------------------------------
CSM (EUR) 158,613 8,478
- ----------------------------------------------------------------------------
Elsevier (EUR) 868,081 12,976
- ----------------------------------------------------------------------------
Equant (EUR) 98,720 8,958
- ----------------------------------------------------------------------------
Fortis Nl (EUR) 378,750 13,484
- ----------------------------------------------------------------------------
Getronics (EUR) 19,360 795
- ----------------------------------------------------------------------------
ING Groep (EUR) 605,435 37,288
- ----------------------------------------------------------------------------
KPN (EUR) 70,257 2,932
- ----------------------------------------------------------------------------
Numico (EUR) 74,610 2,806
- ----------------------------------------------------------------------------
Philips Electronics (EUR) 150,940 12,995
- ----------------------------------------------------------------------------
Royal Dutch Petroleum (EUR) 267,486 15,570
- ----------------------------------------------------------------------------
STMicroelectronics (EUR) * 44,660 4,652
- ----------------------------------------------------------------------------
TNT Post Groep (EUR) 41,078 1,107
- ----------------------------------------------------------------------------
Unilever (EUR) 161,010 11,022
- ----------------------------------------------------------------------------
United Pan-Europe Communications (EUR) 154,522 7,990
- ----------------------------------------------------------------------------
Wolters Kluwer (EUR) 881,960 38,386
- ----------------------------------------------------------------------------
Total Netherlands (Cost $159,265) 212,153
- ----------------------------------------------------------------------------
<PAGE>
NORWAY==1.6%================================================================
Common Stocks 1.6%
Bergesen (Class A) 38,320 $ 574
- ----------------------------------------------------------------------------
Merkantildata 95,000 949
- ----------------------------------------------------------------------------
Norsk Hydro 219,096 9,804
- ----------------------------------------------------------------------------
Orkla (Class A) 680,326 11,410
- ----------------------------------------------------------------------------
Saga Petroleum 64,670 716
- ----------------------------------------------------------------------------
Tomra Systems 19,800 786
- ----------------------------------------------------------------------------
Total Norway (Cost $24,883) 24,239
- ----------------------------------------------------------------------------
PORTUGAL==0.5%==============================================================
Common Stocks 0.5%
Jeronimo Martins (EUR) 187,420 6,167
- ----------------------------------------------------------------------------
Jeronimo Martins , New (EUR) 62,473 2,056
- ----------------------------------------------------------------------------
Total Portugal (Cost $4,577) 8,223
- ----------------------------------------------------------------------------
RUSSIA==0.1%================================================================
Common Stocks 0.1%
Lukoil (USD) 13,576 126
- ----------------------------------------------------------------------------
Lukoil ADR (USD) 8,001 302
- ----------------------------------------------------------------------------
Rao Gazprom ADS (USD) * 85,479 908
- ----------------------------------------------------------------------------
Total Russia (Cost $1,922) 1,336
- ----------------------------------------------------------------------------
<PAGE>
SPAIN==4.2%=================================================================
Common Stocks and Rights 4.2%
Argentaria Banca de Espana (EUR) 226,554 5,328
- ----------------------------------------------------------------------------
Azkoyen (EUR) 13,750 382
- ----------------------------------------------------------------------------
Banco Bilbao Vizcaya (EUR) 263,640 3,944
- ----------------------------------------------------------------------------
Banco Popular Espanol (EUR) 34,945 2,473
- ----------------------------------------------------------------------------
Banco Santander (EUR) 556,233 12,081
- ----------------------------------------------------------------------------
Empresa Nacional de Electricidad (EUR) 263,446 5,856
- ----------------------------------------------------------------------------
Gas Natural (EUR) 45,671 3,688
- ----------------------------------------------------------------------------
Iberdrola (EUR) 554,275 7,758
- ----------------------------------------------------------------------------
Prosegur Seguridad (EUR) 32,500 376
- ----------------------------------------------------------------------------
Repsol (EUR) 268,557 4,369
- ----------------------------------------------------------------------------
Telefonica de Espana (EUR) 370,683 $ 17,367
- ----------------------------------------------------------------------------
Telefonica, Rights, 5/20/99 (EUR) * 375,183 349
- ----------------------------------------------------------------------------
Total Spain (Cost $41,488) 63,971
- ----------------------------------------------------------------------------
SWEDEN==5.4%================================================================
Common Stocks 5.4%
ABB (Class A) 307,690 4,285
- ----------------------------------------------------------------------------
Assa-Abloy (Class B) 32,172 1,403
- ----------------------------------------------------------------------------
AstraZeneca Group ADR 504,368 19,668
- ----------------------------------------------------------------------------
Atlas Copco (Class B) 198,790 5,231
- ----------------------------------------------------------------------------
Electrolux (Class B) 526,780 10,677
- ----------------------------------------------------------------------------
Esselte (Class B) 36,976 576
- ----------------------------------------------------------------------------
<PAGE>
Granges 30,544 518
- ----------------------------------------------------------------------------
Hennes and Mauritz (Class B) 233,910 20,155
- ----------------------------------------------------------------------------
Nordbanken Holding 1,913,405 12,020
- ----------------------------------------------------------------------------
Sandvik (Class B) 194,990 4,403
- ----------------------------------------------------------------------------
Securitas (Class B) 132,164 1,958
- ----------------------------------------------------------------------------
Total Sweden (Cost $50,597) 80,894
- ----------------------------------------------------------------------------
SWITZERLAND==9.4%===========================================================
Common Stocks 9.4%
ABB 5,385 7,853
- ----------------------------------------------------------------------------
Adecco 26,304 13,258
- ----------------------------------------------------------------------------
Credit Suisse Group 47,055 9,330
- ----------------------------------------------------------------------------
Nestle 19,375 35,849
- ----------------------------------------------------------------------------
Novartis 17,228 25,215
- ----------------------------------------------------------------------------
Roche Holdings 2,068 24,317
- ----------------------------------------------------------------------------
Swatch Group 325 232
- ----------------------------------------------------------------------------
Swisscom * 6,812 2,500
- ----------------------------------------------------------------------------
UBS 67,594 22,949
- ----------------------------------------------------------------------------
Valora Holdings 1,070 250
- ----------------------------------------------------------------------------
Total Switzerland (Cost $117,646) 141,753
- ----------------------------------------------------------------------------
UNITED=KINGDOM==27.7%=======================================================
Common Stocks 27.7%
Abbey National 626,080 $ 14,108
- ----------------------------------------------------------------------------
Asda Group 2,071,430 6,881
- ----------------------------------------------------------------------------
<PAGE>
Ashtead Group 142,999 523
- ----------------------------------------------------------------------------
BG 541,176 3,047
- ----------------------------------------------------------------------------
British Petroleum 497,000 9,426
- ----------------------------------------------------------------------------
Cable & Wireless 1,458,110 20,900
- ----------------------------------------------------------------------------
Cadbury Schweppes 1,024,753 13,666
- ----------------------------------------------------------------------------
Caradon 1,103,223 2,804
- ----------------------------------------------------------------------------
Centrica * 492,600 1,001
- ----------------------------------------------------------------------------
Compass Group 1,250,000 12,729
- ----------------------------------------------------------------------------
David S. Smith 593,416 1,279
- ----------------------------------------------------------------------------
Diageo 2,918,997 33,622
- ----------------------------------------------------------------------------
EMAP 79,000 1,661
- ----------------------------------------------------------------------------
Electrocomponents 599,000 5,107
- ----------------------------------------------------------------------------
GKN 256,000 4,370
- ----------------------------------------------------------------------------
Glaxo Wellcome 1,126,540 33,346
- ----------------------------------------------------------------------------
John Laing (Class A) 302,152 1,551
- ----------------------------------------------------------------------------
Kingfisher 2,427,462 36,321
- ----------------------------------------------------------------------------
Ladbroke Group 820,250 3,942
- ----------------------------------------------------------------------------
National Westminster Bank 2,560,328 61,288
- ----------------------------------------------------------------------------
Rank Group 620,625 2,581
- ----------------------------------------------------------------------------
Reed International 2,312,880 21,059
- ----------------------------------------------------------------------------
Rio Tinto 505,848 8,821
- ----------------------------------------------------------------------------
Rolls Royce 469,761 2,178
- ----------------------------------------------------------------------------
Safeway 1,071,000 4,462
- ----------------------------------------------------------------------------
Select Appointment 52,600 670
- ----------------------------------------------------------------------------
<PAGE>
Serco Group 117,500 2,609
- ----------------------------------------------------------------------------
Shell Transport & Trading 4,619,000 34,701
- ----------------------------------------------------------------------------
SmithKline Beecham 2,442,160 32,215
- ----------------------------------------------------------------------------
Tesco 2,742,500 8,151
- ----------------------------------------------------------------------------
Tomkins 2,902,426 12,420
- ----------------------------------------------------------------------------
Unilever 629,000 5,606
- ----------------------------------------------------------------------------
United News & Media 1,157,390 14,076
- ----------------------------------------------------------------------------
Total United Kingdom (Cost $302,089) 417,121
- ----------------------------------------------------------------------------
SHORT-TERM=INVESTMENTS==0.9%================================================
Money Market Funds 0.9%
Reserve Investment Fund, 5.01% # 13,182,747 $ 13,183
- ----------------------------------------------------------------------------
Total Short-Term Investments (Cost $13,183) 13,183
=Total=Investments=in=Securities============================================
99.6% of Net Assets (Cost $1,108,634) $ 1,500,147
Other Assets Less Liabilities 6,770
NET ASSETS $ 1,506,917
* Non-income producing
# Seven-day yield
ADR American depository receipt
ADS American depository share
EUR European Currency Unit
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Unaudited
April 30, 1999
Statement of Assets and Liabilities
- -----------------------------------
In thousands
Assets
- ------
Investments in securities, at value (cost $1,108,634) $ 1,500,147
Securities lending collateral 436,414
Other assets 14,737
Total assets 1,951,298
Liabilities
Obligation to return securities lending collateral 436,414
Other liabilities 7,967
Total liabilities 444,381
NET ASSETS $ 1,506,917
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 4,117
Accumulated net realized gain/loss - net of distributions 49,765
Net unrealized gain (loss) 391,462
Paid-in-capital applicable to 68,472,094 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 1,061,573
NET ASSETS $ 1,506,917
NET ASSET VALUE PER SHARE $ 22.01
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Unaudited
STATEMENT OF OPERATIONS
In thousands
6 Months
Ended
4/30/99
Investment=Income==================================================
Income
Dividend (net of foreign taxes of $1,506) $ 10,534
Interest 1,445
- -------------------------------------------------------------------
Total income 11,979
- -------------------------------------------------------------------
Expenses
Investment management 6,147
Shareholder servicing 1,234
Custody and accounting 277
Prospectus and shareholder reports 109
Registration 57
Legal and audit 11
Directors 4
Miscellaneous 3
- -------------------------------------------------------------------
Total expenses 7,842
- -------------------------------------------------------------------
Net investment income 4,137
- -------------------------------------------------------------------
Realized=and=Unrealized=Gain=(Loss)
Net realized gain (loss)
Securities 58,540
Futures 1,149
Foreign currency transactions (384)
- -------------------------------------------------------------------
Net realized gain (loss) 59,305
- -------------------------------------------------------------------
Change in net unrealized gain or loss
Securities 75,242
Other assets and liabilities
denominated in foreign currencies (142)
- -------------------------------------------------------------------
Change in net unrealized gain or loss 75,100
- -------------------------------------------------------------------
Net realized and unrealized gain (loss) 134,405
- -------------------------------------------------------------------
INCREASE (DECREASE) IN NET
===================================================================
ASSETS FROM OPERATIONS $ 138,542
===================================================================
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Unaudited
Statement of Changes in Net Assets
- ----------------------------------
In thousands
6 Months Year
Ended Ended
4/30/99 10/31/98
==Increase=(Decrease)=in=Net=Assets============================================
Operations
Net investment income $ 4,137 $ 17,744
Net realized gain (loss) 59,305 132,809
Change in net unrealized gain or loss 75,100 33,315
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 138,542 183,868
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (17,725) (12,319)
Net realized gain (138,004) (49,758)
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (155,729) (62,077)
- -------------------------------------------------------------------------------
Capital share transactions*
Shares sold 324,721 852,885
Distributions reinvested 149,017 59,319
Shares redeemed (361,642) (606,070)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 112,096 306,134
- -------------------------------------------------------------------------------
==Net=Assets
Increase (decrease) during period 94,909 427,925
Beginning of period 1,412,008 984,083
- -------------------------------------------------------------------------------
===============================================================================
End of period $1,506,917 $ 1,412,008
===============================================================================
*Share information
Shares sold 14,829 38,105
Distributions reinvested 7,202 3,056
Shares redeemed (16,639) (27,678)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 5,392 13,483
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
- ---------------------------------
Unaudited
April 30, 1999
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 European Stock Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation and commenced operations on February 28, 1990.
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.
Investments in 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.
<PAGE>
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. Credits earned on daily, uninvested cash
balances at the custodian are used to reduce the fund's custody charges.
================================================================================
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. government 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, 1999, the value of
loaned securities was $423,472,000; aggregate collateral consisted of
$436,414,000 in the securities lending collateral pool and U.S. government
securities valued at $11,127,000.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $152,169,000 and $153,717,000, respectively, for the six
months ended April 30, 1999.
<PAGE>
================================================================================
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, 1999, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$1,108,634,000. Net unrealized gain aggregated $391,513,000 at period-end, of
which $411,957,000 related to appreciated investments and $20,444,000 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 $1,017,000 was
payable at April 30, 1999. The fee is computed daily and paid monthly, and
consists of an individual fund fee equal to 0.50% of average daily net assets
and a group fee. The group fee is based on the combined assets of certain mutual
funds sponsored by the manager or Price Associates (the group). The group fee
rate ranges from 0.48% for the first $1 billion of assets to 0.30% for assets in
excess of $80 billion. At April 30, 1999, 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.
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 $995,000 for
the six months ended April 30, 1999, of which $220,000 was payable at
period-end.
<PAGE>
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum)
may invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum International Fund
held approximately 0.9% of the outstanding shares of the fund at April 30, 1999.
For the six months then ended, the fund was allocated $46,000 of Spectrum
expenses, $23,000 of which 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, 1999, totaled
$942,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the six months ended April 30, 1999, the fund, in the ordinary
course of business, placed security purchase and sale orders aggregating
$17,134,000 with certain affiliates of the manager and paid commissions of
$29,000 related thereto.
================================================================================
<PAGE>
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(R) and the
T. Rowe Price Web site on the Internet. Address:
www.troweprice.com
BROKERAGE SERVICES*
-------------------
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over full-service commission
rates.**
<PAGE>
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.
================================================================================
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
<PAGE>
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 Growth & Income
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 Intermediate Tax-Free**
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
<PAGE>
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 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
- ----------------------------------------
<PAGE>
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
* Closed to new investors.
** Formerly named Florida Insured Intermediate Tax-Free.
*** Formerly named Tax-Free Insured Intermediate Bond.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
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.
================================================================================
T. Rowe Price Retirement Plans and Resources
Retirement Plans and Resources
We recognize that saving for retirement is the number one investment goal
for most Americans. We can help you meet your retirement needs, whether you are
starting an IRA or designing a retirement program for your employees. T. Rowe
Price offers an assortment of retirement plans for individuals, the
self-employed, small businesses, corporations, and nonprofit organizations. We
provide recordkeeping, communications, and investment management services, as
well as a variety of educational materials, self-help planning guides, and
software tools to help you choose and implement a retirement plan appropriate
for you. For information or to request literature, call us at 1-800-638-5660.
<PAGE>
Traditional IRA
Roth IRA
Rollover IRA
SEP-IRA
SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase Pension and Profit Sharing Plans)
401(k)
403(b)
457 Deferred Compensation
RETIREMENT RESOURCES AT T. ROWE PRICE
Planning and Informational Guides
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
Investment Kits
The IRA Investing Kit
Roth IRA Conversion Kit
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh PlanRegistration Mark From
T. Rowe Price
The T. Rowe Price 401(k) Century PlanRegistration Mark (for small
businesses)
Money Purchase Pension/Profit Sharing Plan Kit
Investing for Retirement in Your 403(b) Account
The T. Rowe Price No-Load Variable Annuity Information Kit
Insights Reports
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
<PAGE>
Software Packages
T. Rowe Price Retirement Planning AnalyzerTM CD-ROM or diskette $19.95. To
order, please call 1-800-541-5760. Also available on the Internet for $9.95.
T. Rowe Price Variable Annuity Analyzer(TM) CD-ROM or diskette, free. To
order, please call 1-800-469-5304.
Many of these resources are also available for viewing or ordering on the
Internet at www.troweprice.com.
IRAs AND QUALIFIED PLANS
================================================================================
T. Rowe Price Insights Reports
- ------------------------------
The Fundamentals of Investing
- -----------------------------
Whether you are unsure how to get started or are saving for a specific
goal, such as retirement or college, the T. Rowe Price Insights series can help
you make informed investment decisions. These reports, written in plain English
about fundamental investment topics, can be useful at every stage of your
investment journey. They cover a range of topics, from the basic, such as
getting started with mutual funds, to the more advanced, such as managing risk
through diversification or buying individual securities through a broker. To
request one or more Insights, call us at 1-800-638-5660.
INSIGHTS REPORTS
- ----------------
General Information
- -------------------
The ABCs of Giving
------------------
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
Investment Strategies
- ---------------------
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
<PAGE>
Managing Risk Through Diversification
The Power of Compounding
Value Investing
Types of Securities
- -------------------
The Basics of International Stock Investing The Basics of Tax-Free Investing
The Fundamentals of Fixed Income Investing Global Bond Investing Investing in
Common Stocks Investing in Emerging Growth Stocks Investing in Financial
Services Stocks Investing in Health Care Stocks Investing in High-Yield
Municipal Bonds Investing in Money Market Securities Investing in
Mortgage-Backed Securities Investing in Natural Resource Stocks Investing in
Science and Technology Stocks Investing in Small-Company Stocks Understanding
Derivatives Understanding High-Yield "Junk" Bonds
Brokerage Insights
- ------------------
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
================================================================================
FOR YIELD, PRICE, LAST
TRANSACTION, CURRENT BALANCE,
OR TO CONDUCT TRANSACTIONS, 24
HOURS, 7 DAYS A WEEK, CALL
TELE*ACCESS [REGISTRATION
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 BROKERAGE ACCOUNT OR
OBTAIN INFORMATION, CALL:
1-800-638-5660 toll free
<PAGE>
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
appropriate to the fund or
funds covered in this report.
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
4200 West Cypress St.
10th Floor
Tampa, FL 33607
4410 ArrowsWest Drive
Colorado Springs, CO 80907
Warner Center Plaza 5
Mezzanine Level 21800 Oxnard
Street, Suite 270 Woodland
Hills, CA 91367
(OPENS MID-JUNE)
T. Rowe Price Investment Services, Inc., Distributor. F79-051 4/30/99
