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July 1, 2000
FUND PROFILE
T. ROWE PRICE
International Growth & Income Fund
A fund seeking long-term capital growth and reasonable income through
investments primarily in the common stocks of well-established, dividend-paying
companies outside the U.S.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICELOGO
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What is the fund's objective?
The fund seeks long-term growth of capital and reasonable income through
investments primarily in the common stocks of well-established,
dividend-paying non-U.S. companies.
What is the fund's principal investment strategy?
We expect to invest substantially all of the fund's assets outside the U.S.
and to diversify broadly, primarily among the world's developed countries.
The fund will invest primarily (at least 65% of total assets) in the stocks
of dividend-paying large, well-established companies that have favorable
prospects for capital appreciation, as determined by Rowe Price-Fleming
International, Inc. ("Price-Fleming"). Investments in emerging markets will
be modest and limited to more mature developing countries.
In selecting common stocks, we combine proprietary quantitative analysis with
bottom-up research and a global, regional, and country outlook. Our investing
style reflects both a growth and a value orientation, although in general we
place less emphasis on above-average earnings growth and more on "value"
characteristics such as above-average dividend yields or below-average
price/earnings or price/book value ratios. Valuation factors often influence
our allocations among large-, mid-, or small-cap shares. Country allocation
is driven largely by stock selection, though we may limit investments in
markets that appear to have poor overall prospects.
Normally, the fund invests primarily (at least 65% of total assets) in common
stocks. To a lesser extent, the fund may also purchase other securities,
including futures and options, in keeping with the fund's objective.
The fund may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into more promising opportunities.
Further information about the fund's investments, including a review of
market conditions and fund strategies and their impact on performance, is
available in the annual and semiannual shareholder reports. To obtain free
copies of any of these documents, call 1-800-638-5660.
What are the main risks of investing in the fund?
As with all stock funds, this fund's share price can fall because of weakness
in one or more of its primary equity markets, a particular industry, or
specific holdings. Stock markets can decline for many reasons, including
adverse political or economic developments, changes in investor psychology,
or heavy institutional selling. The prospects for an industry or company may
deteriorate because of a variety of factors, including disappointing earnings
or changes in the competitive environment. In addition, our assessment of
companies held in the fund may prove incorrect, resulting in losses or poor
performance even in rising markets.
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FUND PROFILE
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Funds that invest overseas generally carry more risk than funds that invest
strictly in U.S. assets. Even investments in countries with highly developed
economies are subject to significant risks. Some particular risks affecting
this fund include the following:
. Currency risk This refers to a decline in the value of a foreign currency
versus the U.S. dollar, which reduces the dollar value of securities
denominated in that currency. The overall impact on a fund's holdings can be
significant and long-lasting depending on the currencies represented in the
portfolio, how each one appreciates or depreciates in relation to the U.S.
dollar, and whether currency positions are hedged. Under normal conditions,
the fund does not engage in extensive foreign currency hedging programs.
Further, exchange rate movements are unpredictable and it is not possible to
effectively hedge the currency risks of many developing countries.
. Emerging market risk To the extent the fund invests in emerging markets, it
is subject to greater risk than a fund investing only in developed markets.
The economic and political structures of developing nations, in most cases,
do not compare favorably with the U.S. or other developed countries in terms
of wealth and stability, and their financial markets often lack liquidity.
Fund performance will likely be negatively affected by portfolio exposure to
nations in the midst of hyperinflation, currency devaluation, trade
disagreements, sudden political upheaval, or interventionist government
policies. Significant buying or selling actions by a few major investors may
also heighten the volatility of emerging markets. These factors make
investing in such countries significantly riskier than in other countries and
any one of them could cause the fund's share price to decline.
. Other risks of foreign investing Other risks result from the varying stages
of economic and political development, the differing regulatory environments,
trading days, and accounting standards, and higher transaction costs of
non-U.S. markets. Investments outside the United States could be subject to
actions such as capital or currency controls, nationalizing a company or
industry, expropriating assets, or imposing punitive taxes which would have
an adverse effect on the fund.
. While certain countries have made progress in economic growth,
liberalization, fiscal discipline, and political and social stability, there
is no assurance these trends will continue.
. Futures/options risk To the extent the fund uses futures and options, it is
exposed to additional volatility and potential losses.
As with any mutual fund, there can be no guarantee the fund will achieve its
objective.
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. The fund's share price may decline, so when you sell your shares, you may
lose money. An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
How can I tell if the fund is appropriate for me?
Consider your investment goals, your time horizon for achieving them, and
your tolerance for the inherent risk of common stock and international
investments. If you want to diversify your domestic stock portfolio by adding
foreign investments, seek the long-term capital appreciation potential of
growth stocks, and are comfortable with the risks that accompany foreign
investments, the fund could be an appropriate part of your overall investment
strategy.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
. The fund should not represent your complete investment program or be used
for short-term trading purposes.
How has the fund performed in the past?
The bar chart showing calendar year returns and the average annual total
return table indicate risk by illustrating how much returns can differ from
one year to the next and over time. Fund past performance is no guarantee of
future returns.
The fund can also experience short-term performance swings, as shown by the
best and worst calendar quarter returns during the year depicted in the
chart.
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LOGO
<TABLE>
<CAPTION>
Calendar Year Total Returns
"99"
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<S> <C>
19.62
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</TABLE>
Quarter ended Total return
Best quarter 12/31/99 11.81%
Worst quarter 3/31/99 1.18%
<TABLE>
Table 1 Average Annual Total Returns
<CAPTION>
Periods ended 06/30/2000
Since inception
1 year (12/21/1998)
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<S> <C> <C>
International Growth & Income Fund 12.20% 12.18%
MSCI EAFE Index 17.44 14.40
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</TABLE>
These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
What fees or expenses will I pay?
The fund is 100% no load. There are no fees or charges to buy or sell fund
shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
are no 12b-1 fees.
<TABLE>
Table 2 Fees and Expenses of the Fund
<CAPTION>
Annual fund operating expenses
(expenses that are deducted from fund assets)
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<S> <C>
Management fee 0.67%/a/
Other expenses 2.77%
Total annual fund operating
expenses 3.44%/a/
Fee waiver/reimbursement 2.19%
Net expenses 1.25%
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</TABLE>
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/a/Price-Fleming is contractually obligated to waive its fees and bear any
expenses through October 31, 2000, that would cause the fund's ratio of
expenses to average net assets to exceed 1.25%. Fees waived or expenses paid
or assumed under this agreement are subject to reimbursement to Price-Fleming
by the fund whenever the fund's expense ratio is below 1.25%; however, no
reimbursement will be made after October 31, 2002, or if it would result in
the expense ratio exceeding 1.25%. Any amounts reimbursed have the effect of
increasing fees otherwise paid by the fund.
Example. The following table gives you a rough idea of how expense ratios
may translate into dollars and helps you to compare the cost of investing in
this fund with that of other funds. Although your actual costs may be higher
or lower, the table shows how much you would pay if operating expenses remain
the same, the expense limitation currently in place is not renewed, you
invest $10,000, you earn a 5% annual return, and you hold the investment for
the following periods:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
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<S> <C> <C> <C>
$127 $633 $1,397 $3,413
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</TABLE>
Who manages the fund?
The fund is managed by Rowe Price-Fleming International, Inc., a joint
venture between T. Rowe Price Associates, Inc. ("T. Rowe Price") and the
London-based Robert Fleming Holdings, Ltd. ("Flemings"). Flemings
includes Robert Fleming and Jardine Fleming. Established in 1979,
Price-Fleming manages investments for individual and institutional accounts,
including 12 no-load mutual funds sold directly to the public. On April 11,
2000, T. Rowe Price entered into an agreement with Flemings and certain of
its subsidiaries (collectively "Fleming Companies") to purchase the Fleming
Companies' 50% interest in Price-Fleming. As a result of this purchase,
shareholders will be asked to approve a new investment management agreement
for the fund.
The fund has an Investment Advisory Group that has day-to-day responsibility
for managing the portfolio and developing and executing its investment
program. The advisory group consists of Richard T. Whitney, who joined
Price-Fleming in 1998, has been with T. Rowe Price since 1985, and has 17
years of experience in equity research and portfolio management; John R.
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Ford, who joined Price-Fleming in 1982 and has worked in research and
portfolio management since that time; James B.M. Seddon, who joined
Price-Fleming in 1987 and has 13 years of experience in portfolio management;
and Robert W. Smith, who joined Price-Fleming in 1996, has been with T. Rowe
Price since 1992, and has 13 years of experience in financial analysis.
Note: The following questions and answers about buying and selling shares and
services do not apply to employer-sponsored retirement plans. If you are a
participant in one of these plans, please call your plan's toll-free number for
additional information.
How can I purchase shares?
Fill out the New Account Form and return it with your check in the postpaid
envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
or transfers to minors). The minimum subsequent investment is $100 ($50 for
IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
open an account by bank wire, by exchanging from another T. Rowe Price fund,
or by transferring assets from another financial institution.
How can I sell shares?
You may redeem or sell any portion of your account on any business day.
Simply write to us or call. You can also access your account at any time via
Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
entire family of domestic and international funds. Restrictions may apply in
special circumstances, and some redemption requests need a signature
guarantee. A $5 fee is charged for wire redemptions under $5,000.
When will I receive income and capital gain distributions?
The fund distributes income and net capital gains, if any, at year-end. For
regular accounts, income and short-term gains are taxable at ordinary income
rates, and long-term gains are taxable at the capital gains rate.
Distributions are reinvested automatically in additional shares unless you
choose another option, such as receiving a check. Distributions paid to IRAs
and employer-sponsored retirement plans are automatically reinvested.
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What services are available?
A wide range, including but not limited to:
. retirement plans for individuals and large and small businesses;
. automated information and transaction services by telephone or computer;
. electronic transfers between fund and bank accounts;
. automatic investing and automatic exchange;
. brokerage services; and
. asset manager accounts.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F127-035
T. Rowe Price Investment Services, Inc., Distributor
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