<PAGE>
Annual Report
GLOBAL
STOCK
FUND
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OCTOBER 31, 2000
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[LOGO]
<PAGE>
REPORT HIGHLIGHTS
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Global Stock Fund
. Global stocks fell during the past six months as a rally in defensive
shares failed to compensate for a steep correction in technology stocks.
. The fund turned in negative results for the six-month period but posted
good results for the past 12 months, thanks to U.S. stocks.
. Performance was ahead of both the MSCI World Index and the average returns
for similar funds in both periods.
. Stocks in Europe and Japan suffered the worst damage while Latin America
fared better because of its lack of exposure to tech shares.
UPDATES AVAILABLE
For updates on T. Rowe Price funds following the end of each calendar quarter,
please see our Web site at www.troweprice.com.
<PAGE>
FELLOW SHAREHOLDERS
Global stocks declined during the six months ended October 31, 2000. During the
first half of your fund's fiscal year, Internet-related telecom, media, and
technology stocks rose sharply. Leadership changed in the second half as a
severe correction hit these sectors, while more defensive consumer staple,
pharmaceutical, and banking stocks found their footing. The recovery in
defensive issues, however, failed to compensate for the steep decline in tech
stocks.
Fund performance during the past 6- and 12-month periods was negative, but
surpassed both the MSCI World Index and the Lipper average for similar funds.
Diversification aided performance during the year: holdings in telecom, media,
and technology stocks boosted results over the year, while exposure to
recovering defensive shares helped during the recent period. Our individual
stock selection also lifted performance.
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PERFORMANCE COMPARISON
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Periods Ended 10/31/00 6 Months 12 Months
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Global Stock Fund -3.27% 10.98%
MSCI World Index -5.81 1.39
Lipper Global Funds Average -5.25 10.26
Investors had driven tele-com, media, and technology stocks higher in 1999 and
early 2000 on the expectation that their potential for powerful growth could be
sustained. However, signs of moderating demand, profit warnings, and abundant
new issuance finally weighed on these sectors and pushed share prices down to
more realistic levels. Investors began to focus on established companies whose
shares had been beaten down, including food producers, pharmaceuticals, and
banks.
Broader concerns weighing on the equities markets included slower economic
growth, high oil prices, and euro weakness. Economic growth eased in Europe,
while in Japan the consumer sector remained weak and rising bankruptcies failed
to alleviate concerns about unemployment. Economic growth in the rest of Asia
was strong, although recurring worries about financial stability plagued some
emerging markets.
1
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CAN THE EURO ALSO RISE?
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Understanding why the euro has been weak helps explain why it should recover.
Several factors have pushed the euro--the common currency for 11 countries in
Continental Europe--down 27% since its launch on January 1, 1999. Chris Rothery,
a portfolio manager at T. Rowe Price International (TRPI), thinks each of these
factors could moderate or reverse in the next year.
Capital flows into the U.S. have risen sharply in recent years as European
companies acquired an unprecedented number of U.S. businesses and as Europeans
invested in U.S. financial assets. Both trends are moderating, however. This
year's weakness in the U.S. stock market has made investment here less
attractive. "The Nasdaq bubble appears to have been pricked, which should also
take some steam out of the dollar," says Rothery.
The persistent strength of the U.S. economy has also hurt the euro, as it makes
the U.S. a more attractive place to invest. But U.S. growth has showed signs of
slowing recently, narrowing the advantage over European growth.
Higher-yielding U.S. government bonds also lured investors. Recently, however,
long-term U.S. rates have declined while those in the euro zone have remained
stable.
Since the euro's launch, oil prices have more than tripled, and Europe's
demand for the dollars needed to pay for oil has surged. But oil prices are
stabilizing and expected to trend lower.
While the Federal Reserve is respected and well established, the European
Central Bank (ECB) has less than two years' experience. ECB officials have
aggravated investors' uncertainty by making confusing remarks. Lately, ECB
officials have become more politically astute and are expected to make more
careful statements.
Though TRPI portfolio managers have been surprised by the extent of the euro's
decline, they point out that markets often overshoot. It would be a mistake for
U.S. investors to shun euro assets, says Rothery.
John Ford, TRPI's chief investment officer, sees Europe at an earlier stage of
the economic cycle than the U.S., with greater room for productivity
improvement. "If we can get into a virtuous cycle, then investors can benefit
from better economic performance, higher returns on capital, and a strong chance
of currency appreciation to boot," Ford says.
THE EURO VS. THE U.S. DOLLAR
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[GRAPH]
[PLOT POINT TO COME]
Chart shows the euro--the common currency of 11 countries in Continental
Europe--has declined steadily in value versus the U.S. dollar since its January
1, 1999, launch.
2
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PORTFOLIO REVIEW
At the end of October, the U.S. represented 45% of net assets, up slightly from
last April. Europe accounted for 29%, down from 31% in April. Within Europe, the
U.K. remained the largest country exposure at 10%. We had 9% invested in Japan,
down from 11% in April. In the Far East, the weighting fell from 6% to 3%, while
in Latin America 2% of the portfolio was split between Mexico and Brazil.
Purchases included banks with strong market positions and restructuring
potential, and stocks in commercial services.
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GEOGRAPHIC DIVERSIFICATION
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[PIE CHART]
United States 45%
Europe 29%
Other and Reserves 12%
Japan 9%
Far East 3%
Latin America 2%
United States
As in many recent periods, the overall performance of U.S. stocks during the
past six months did not adequately describe the dynamic trends in specific
sectors. While the general market was relatively flat, individual sectors
diverged wildly. Technology and telecom stocks, specifically larger-cap issues,
performed very poorly as actual and perceived earnings deterioration, coupled
with high price/earnings multiples, led to significant stock price declines.
Noteworthy examples were Microsoft, the fund's second-largest position, Intel,
Dell Computer, and WorldCom.
. Financial, Health Care, and Defensive Stocks
Financial stocks and selected health care issues were quite strong during the
past six months. The leveling of interest rates, coupled with reasonable stock
valuations and strong fundamentals, propelled stocks like the fund's largest
holding, Freddie Mac, Bank of New York, Citigroup (another major holding),
Waters, and UnitedHealth Group higher. In addition, several steady-earners
benefited as investors voiced concerns about the effects a slowing economy might
have on high-flying growth stocks. This trend was helpful to our positions in
Philip Morris, Safeway, and Automatic Data Processing.
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. Purchases and Sales
During the period, we took profits in several stocks that appreciated sharply
after we bought them, as their valuations became extreme. These sales included
Corning, Siebel Systems, and Ariba. We used the proceeds to buy more stable
growth companies like Johnson & Johnson, Disney, and food distributor Sysco.
As the third quarter unfolded, it became evident that the U.S. economy was
slowing, competition was heating up, and the strength of the dollar was having
an impact on both corporate earnings and European economic progress. It also
became evident that inventories were building along the technology chain, which
caused a severe correction in technology and telecom stocks. While we believe
this will cause earnings disruptions, we are beginning to see value in several
companies in these sectors. Although the ride may be bumpy, we began to build
positions in Exodus Communications, LSI Logic, and Crown Castle.
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MARKET PERFORMANCE
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Six Months Local Local Currency U.S.
Ended 10/31/00 Currency vs. U.S. Dollars Dollars
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France 0.66% -6.99% -6.37%
Germany -5.58 -6.98 -12.18
Hong Kong -11.74 -0.13 -11.85
Italy 9.53 -6.98 1.88
Japan -13.51 -1.02 -14.39
Mexico -0.67 -1.87 -2.53
Netherlands 6.37 -6.98 -1.06
Norway 17.46 -3.80 13.00
Switzerland 7.27 -4.32 2.65
United Kingdom 4.74 -7.20 -2.81
United States -3.28 - -3.28
Source: RIMES Online, using MSCI indices.
Europe
Sharp declines in major telecom, media, and technology stocks and the weakness
of the euro impeded stock market performance in Europe. The telecoms hurt
markets in Germany and France, while large telecom handset and equipment stocks
Nokia and LM Ericsson had a serious impact on Finnish and Swedish markets. On
the other hand, Switzerland held up better because telecom stocks are an
insignificant part of the Swiss market.
. Telecoms
European governments began to auction off the spectrum that telecom operators
need to provide third-generation, Internet-compatible mobile telephone services.
In the U.K., companies paid unexpectedly high
4
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prices, and more licenses than expected were sold in Germany at generally
steep prices. Telecom stocks such as British Telecom and Deutsche Telekom fell
as investors worried about the high costs for services that will not be rolled
out until 2002, with more players than expected in the important German market.
Diversified telecoms performed significantly worse than mobile telecoms because
earnings from traditional fixed-line services have fallen. Mobile telecoms,
including Vodafone Group and Telecom Italia Mobile, performed far better.
. Technology
The challenges to telecom company growth and profitability have direct
implications for technology hardware companies that have benefited from strong
demand. Mobile handset suppliers, component manufacturers, and equipment and
infrastructure producers declined after extended periods of extraordinary gains.
Despite increasing its market share, world leading handset manufacturer Nokia,
our seventh-largest holding, fell as investors worried about future growth
prospects. Results of the handset businesses at LM Ericsson and Philips
Electronics were disappointing, and news from other players in the market also
indicated that demand for handsets was healthy but softening. A weaker outlook
for handsets and reports of poor PC sales in Europe hurt businesses that produce
components, such as semiconductors. European semiconductor equipment
manufacturer ASM Lithography, specialized semiconductor producer
STMicroelectronics, and Philips (which has a major semiconductor business) all
fell. Despite excellent results and full order books, disappointments from
technology companies such as Intel in the U.S. adversely affected their
performance. Optical network equipment producers such as Alcatel performed
better, but as the broader sector fell they also slipped lower.
. Media
Signs that European economic growth was slowing, contributing to weaker
advertising spending, raised concerns. French broadcaster Societe Television
Francaise 1 declined after a sharp rise. Dutch directory giant VNU, which owns
Nielsen Research in the U.S., also gave back some earlier gains. WPP Group was
weak until the end of the period largely due to initial concerns about its
acquisition of U.S. advertising agency Y&R. U.K. publisher Reed International,
which had performed poorly six months ago due to its lack of Internet services,
rose strongly in the recent period.
5
<PAGE>
. Financials
Strong results lifted Royal Bank of Scotland Group, a major holding, which is
reaping the benefits of restructuring and cost-cutting after last year's
acquisition of U.K. bank NatWest. In Italy, banks Banca Intesa and UniCredito
Italiano, as well as insurer Alleanza Assicurazioni, performed well. Other
European banks also made acquisitions to strengthen their market positions and
leverage their expertise. Finnish/Swedish group Nordic Baltic Holding -- another
strong performer --acquired Christiania Bank of Norway. Dutch banking and
insurance group ING Groep acquired U.S. insurer Reliastar and Aetna's financial
services businesses, giving it an inside track in U.S. life and annuity
premiums. Fortis began to integrate its Dutch and Belgian businesses and
announced the acquisition of a Dutch insurer.
. Food, Beverage, and Pharmaceuticals
Unilever, Nestle, and Diageo rose as investors sought their more predictable
defensive characteristics. Anglo/Dutch Unilever acquired U.S. Bestfoods for $20
billion to create the world's second-largest food manufacturer. U.K.'s Diageo
announced plans to merge its food business, Pillsbury, with General Mills in the
U.S. to form the largest listed U.S. food business and the world's
fourth-largest food company. Sanofi-Synthelabo, Aventis, AstraZeneca Group, and
biotech company Celltech Group were among your portfolio's leading performers.
Healthy sales growth and cost-cutting pushed Sanofi and Aventis higher, and
AstraZeneca climbed as new drugs with encouraging prospects were approved or
launched.
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INDUSTRY DIVERSIFICATION
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Percent of Net Assets
4/30/00 10/31/00
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Services 34.9% 27.1%
Finance 14.6 18.8
Capital Equipment 21.0 18.6
Consumer Goods 14.1 13.6
Energy 5.3 6.1
All Other 1.6 4.2
Materials 2.5 1.0
Reserves 6.0 10.6
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Total 100.0% 100.0%
Japan
International concerns about technology component demand, sales by foreign
investors and banks, and bankruptcies of major businesses hurt
6
<PAGE>
Japan's stock market. Weakness was broadly based and only a few cyclical and
defensive sectors rose. Banks, pharmaceuticals, and consumer goods declined
moderately, but telecom and technology stocks fell more sharply. As a result of
the controversy surrounding Bridgestone's Firestone tires, the stock and its
sector suffered. Your fund had only a small position in Bridgestone, which we
sold shortly after the initial allegations were revealed.
. Banks
The bankruptcies of major companies depressed bank stocks to multi-year lows.
The banks resisted some requests for debt forgiveness and the government refused
to rescue a major retailer. Despite these signs of progress, Japan needs to show
a greater willingness to let insolvent businesses collapse rather than prop them
up with subsidies. The announced merger of Daichi Kangyo, IBJ, and Fuji Bank
proceeded with the stock market listing of the newly formed holding company for
the merged group, Mizuho Holdings.
. Technology and Consumer Electronics
Suppliers including Kyocera, Murata Manufacturing, Toshiba, and NEC announced
better-than-expected results and raised their forecasts, but fears about future
earnings caused their stocks to fall over the six-month period. Canon,
benefiting from its success in gaining market share as its competitors
struggled, outperformed the general market during the recent six months and
turned in excellent results for the fiscal year. Consumer electronics giant
Matsushita Electric Industrial, known for its Panasonic brand, performed
strongly, but Sony fell sharply.
. Telecoms
Following increased pressure from the U.S., the government reduced the
interconnection rates that the government-controlled Nippon Telegraph &
Telephone (NTT) charges other companies. Concerns that this will increase
competition and reduce NTT's revenues spurred the company to expand its
international interests and acquire U.S. Web host Verio. NTT's mobile
subsidiary, NTT DoCoMo, outstripped forecasts as the number of its Internet
subscribers climbed to 12 million. NTT DoCoMo also expanded abroad, buying
stakes in Dutch and U.K. mobile telecom operators, signing a strategic alliance
with AOL, and acquiring control of AOL's Japanese subsidiary.
7
<PAGE>
Far East
Strong oil prices and slowing global growth hurt markets across the Pacific.
High levels of stock issuance planned for the coming quarters also dampened
regional performance. Local problems added to the pressure on South Korea,
Taiwan, and to a lesser extent India. Economic data and company results were
mostly equal to or above expectations. However, other negative factors prevented
telecom, media, and technology stocks from maintaining earlier peaks. Over the
six-month period, banks rose as concerns about U.S. interest rate hikes
subsided.
. Telecom and Media
Telecom stock China Mobile (Hong Kong) reported better-than-expected results,
and the company's subscriber numbers continued to climb sharply. The advent of
mobile telecom services, marketed in ways that are affordable to the Chinese
population, has opened vast markets. Hong Kong-based Internet company Pacific
Century CyberWorks acquired Hong Kong's largest telecom and formed a joint
venture with Australian telecom Telstra. Conglomerate Hutchison Whampoa and its
parent Cheung Kong Holdings reported robust earnings.
. Technology
Technology stocks including Samsung Electronics and Taiwan Semiconductor
Manufacturing (TSMC) struggled due to indications of slower demand for mobile
handset components, weak PC sales, and falling semiconductor prices. Following
earlier shortages, manufacturers over-ordered components, but demand failed to
meet expectations and prices fell. Despite strong results from Samsung and TSMC,
negative sentiment about the outlook drove share prices lower.
Latin America
Mexican and Brazilian markets performed better than most international markets,
largely because of the lack of technology stocks. Mexico's banks and Brazil's
energy companies performed strongly. The Mexican government promoted banking
reforms, and the acquisition of Mexican banks by foreign banks fostered
confidence in Mexico's banking system. Brazil's leading energy group, Petroleo
Brasileiro (Petrobras), capped off a buoyant six months by announcing a
significant oil discovery. Mexico's dominant telecom, Telefonos de Mexico
(Telmex), split its business into mobile and fixed-line divisions. The good news
was balanced by a government decision to cut
8
<PAGE>
fixed-line rates that Telmex can charge and to increase competition in the
industry.
INVESTMENT OUTLOOK
Going forward, we see a smooth economic landing for the U.S. in 2001. Earnings
could continue to disappoint investors, yet interest rates should decline
further, creating a positive environment for equities as companies with steady
earnings are likely to be rewarded. In Europe, increasing management focus on
returns and fiscal reforms should aid earnings growth. The backdrop for stocks
should also improve as interest rates and oil prices peak, and the undervalued
euro begins to recover.
In Japan, the economic environment is more challenging, but valuations are
moving toward the bottom of their recent ranges. Although it is difficult to see
a short-term catalyst for the Japanese stock market, the downside appears
limited. Elsewhere in Asia, further market liberalization, structural reforms,
and improved corporate governance are essential if the region's superior
long-term economic growth is to translate into strong stock market performance.
The recent period of greater political stability and economic health bode well
for Mexico and Brazil.
Internationally, economies have been slowing, but we expect them to improve by
the second half of 2001. Technology sector earnings growth is likely to ease
from recent peaks but should remain significantly above that of other sectors.
Due to the short-term uncertainty about economic growth, oil prices, technology
trends, and the direction of the euro, markets could continue to be weak or
volatile. However, we expect these factors to mitigate in coming months and
remain cautiously optimistic about the prospects for the fund in the year ahead.
Respectfully submitted,
/S/John R. Ford
John R. Ford
President, T. Rowe Price International Funds, Inc.
November 24, 2000
9
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T. ROWE PRICE GLOBAL STOCK FUND
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PORTFOLIO HIGHLIGHTS
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TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
10/31/00
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Freddie Mac, United States 1.6%
Microsoft, United States 1.6
Pfizer, United States 1.4
Cisco Systems, United States 1.4
Vodafone Group, United Kingdom 1.4
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GE, United States 1.3
Nokia, Finland 1.2
Citigroup, United States 1.1
Royal Bank of Scotland Group, United Kingdom 1.1
Glaxo Wellcome, United Kingdom 1.0
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First Data, United States 0.9
Exxon Mobil, United States 0.9
TotalFinaElf, France 0.9
Shell Transport & Trading, United Kingdom 0.8
USX-Marathon, United States 0.8
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Reed International, United Kingdom 0.7
Vivendi, France 0.7
Safeway, United States 0.7
America Online, United States 0.7
Fannie Mae, United States 0.7
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Banca Intesa, Italy 0.7
Bank of New York, United States 0.7
Philips Electronics, Netherlands 0.7
Canon, Japan 0.7
American Home Products, United States 0.7
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Total 24.4%
Note: Table excludes reserves.
10
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T. ROWE PRICE GLOBAL STOCK FUND
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PERFORMANCE COMPARISON
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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 benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
GLOBAL STOCK FUND
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[GRAPH]
[PLOT POINT TO COME]
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AVERAGE ANNUAL COMPOUND TOTAL RETURN
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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 10/31/00 1 Year 3 Years Inception Date
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Global Stock Fund 10.98% 15.87% 16.17% 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.
11
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
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FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 12/29/95
Ended Through
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 16.77 $ 14.03 $ 13.01 $ 11.35 $ 10.00
Investment activities
Net investment income (loss) 0.02* 0.05* 0.09* 0.06* 0.05*
Net realized and
unrealized gain (loss) 1.80 3.24 1.52 1.84 1.30
Total from
investment activities 1.82 3.29 1.61 1.90 1.35
Distributions
Net investment income (0.06) (0.10) (0.06) (0.06) -
Net realized gain (0.49) (0.45) (0.53) (0.18) -
Total distributions (0.55) (0.55) (0.59) (0.24) -
NET ASSET VALUE
End of period $ 18.04 $ 16.77 $ 14.03 $ 13.01 $ 11.35
=======================================================
Ratios/Supplemental Data
Total return /\ 10.98%* 24.17%* 12.89%* 16.98%* 13.50%*
Ratio of total expenses to
average net assets 1.20%* 1.20%* 1.20%* 1.30%* 1.30%*+
Ratio of net investment
income (loss) to average
net assets 0.15%* 0.40%* 0.76%* 0.68%* 0.88%*+
Portfolio turnover rate 71.5% 37.5% 47.1% 41.8% 50.0%+
Net assets, end of period
(in thousands) $ 107,459 $ 73,837 $ 44,116 $ 32,020 $ 14,916
</TABLE>
/\ 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.
* Excludes expenses in excess of a 1.30% voluntary expense limitation in
effect through 10/31/97 and a 1.20% voluntary expense limitation in effect
through 10/31/01.
+ Annualized
The accompanying notes are an integral part of these financial statements.
12
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T. ROWE PRICE GLOBAL STOCK FUND
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October 31, 2000
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STATEMENT OF NET ASSETS Shares Value
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In thousands
AUSTRALIA 0.6%
Common Stocks 0.3%
Brambles Industries 5,000 $ 130
Telstra 46,375 151
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281
---------
Preferred Stocks 0.3%
News Corporation 36,173 324
324
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Total Australia (Cost $637) 605
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BELGIUM 0.2%
Common Stocks 0.2%
Fortis B (EUR) 6,774 208
---------
Total Belgium (Cost $177) 208
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BERMUDA 1.2%
Common Stocks 1.2%
ACE Limited 18,000 706
Tyco 10,300 584
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Total Bermuda (Cost $573) 1,290
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BRAZIL 0.7%
Common Stocks 0.3%
Petroleo Brasileiro (Petrobras) ADR (USD) * 2,100 61
Telebras ADR (USD) 3,950 289
---------
350
---------
Preferred Stocks 0.4%
Petroleo Brasileiro (Petrobras) 13,707 364
---------
364
---------
Total Brazil (Cost $627) 714
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CANADA 1.0%
Common Stocks 1.0%
Celestica (USD) * 5,808 417
Nortel Networks (USD) 11,500 523
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T. ROWE PRICE GLOBAL STOCK FUND
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Shares Value
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In thousands
Nortel Networks 3,240 $ 147
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Total Canada (Cost $1,002) 1,087
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FINLAND 1.2%
Common Stocks 1.2%
Nokia (EUR) 31,151 1,282
--------
Total Finland (Cost $729) 1,282
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FRANCE 5.0%
Common Stocks 5.0%
Alcatel (EUR) 7,705 470
Altran Technologies (EUR) 380 78
Aventis (EUR) 7,255 523
Aventis (DAX Exchange) (EUR) 1,125 81
AXA (EUR) 4,424 586
BNP Paribas (EUR) 5,700 491
Bouygues (EUR) 1,950 99
Canal Plus (EUR) 280 41
Legrand (EUR) 970 156
Sanofi-Synthelabo (EUR) 7,510 395
Societe Generale (EUR) 1,532 87
Societe Television Francaise 1 (EUR) 7,770 424
STMicroelectronics (EUR) 5,010 253
TotalFinaElf (Class B) (EUR) 6,442 922
Vivendi (EUR) 10,898 783
--------
Total France (Cost 4,241) 5,389
--------
GERMANY 1.6%
Common Stocks 1.6%
Allianz (EUR) 1,000 339
Bayerische Hypo-und Vereinsbank (EUR) 6,167 339
Deutsche Bank (EUR) 5,220 427
E.On (EUR) 4,070 207
SAP (EUR) 2,420 398
--------
Total Germany (Cost $1,654) 1,710
--------
14
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
HONG KONG 1.1%
Common Stocks 1.1%
Cheung Kong Holdings 27,000 $ 299
China Mobile (Hong Kong) * 57,000 365
Hutchison Whampoa 33,200 413
Pacific Century CyberWorks * 113,595 87
--------
Total Hong Kong (Cost $816) 1,164
--------
INDIA 0.3%
Common Stocks 0.3%
Global Tele-Systems * 6,000 135
Hindustan Lever 30,000 114
ICICI Limited 25,000 40
ICICI Limited ADR (USD) 6,952 66
--------
Total India (Cost $557) 355
--------
IRELAND 0.1% 2,084 105
--------
Common Stocks 0.1% 105
--------
SmartForce ADR (USD) *
Total Ireland (Cost $59)
ITALY 2.8%
Common Stocks 2.8%
Alleanza Assicurazioni (EUR) 18,000 239
Assicurazioni Generali (EUR) 2,000 66
Banca Intesa (EUR) 180,497 749
Bipop-Carire (EUR) 26,000 205
ENI (EUR) 55,609 301
Mediolanum (EUR) 13,230 194
Olivetti (EUR) 97,657 296
Telecom Italia (EUR) 14,271 165
Telecom Italia Mobile (EUR) 49,000 417
UniCredito Italiano (EUR) 69,825 355
--------
Total Italy (Cost $2,449) 2,987
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15
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
JAPAN 8.9%
Common Stocks 8.9%
Canon 18,000 $ 714
Fanuc 6,500 584
Fuji Television Network 20 220
Fujitsu 10,000 178
Furukawa Electric * 7,000 184
Kyocera 4,100 534
Marui 10,000 148
Matsushita Communication Industrial 700 92
Matsushita Electric Industrial 19,000 552
Mitsui Fudosan 29,000 351
Mizuho Holdings * 66 508
Murata Manufacturing 3,900 467
NEC 23,000 438
Nippon Telegraph & Telephone 57 519
Nomura Securities 29,000 615
NTT DoCoMo 15 370
Seven-Eleven Japan 7,000 455
Shin-Etsu Chemical 4,000 164
Shiseido 8,000 103
Softbank 1,500 90
Sony 8,600 687
Sumitomo 13,000 114
Sumitomo Bank 30,000 364
Tokyo Electron 2,600 204
Toshiba 53,000 379
Yamanouchi Pharmaceutical 11,000 498
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Total Japan (Cost $8,505) 9,532
--------
MEXICO 0.9%
Common Stocks 0.9%
Femsa UBD Units
(Represents 1 Series B and 4 Series D shares) 31,460 120
Grupo Televisa GDR (USD) * 8,023 434
Telefonos de Mexico (Telmex) (Class L) ADR (USD) 7,470 403
--------
Total Mexico (Cost $780) 957
--------
16
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
NETHERLANDS 2.9%
Common Stocks 2.9%
ASM Lithography (EUR) * 9,600 $ 262
Fortis (EUR) 10,580 323
ING Groep (EUR) 9,610 660
KPN (EUR) 26 1
Philips Electronics (EUR) 18,758 737
Royal Dutch Petroleum (EUR) 6,280 373
VNU (EUR) 12,540 591
Wolters Kluwer (EUR) 7,396 166
--------
Total Netherlands (Cost $2,700) 3,113
--------
SINGAPORE 0.9%
Common Stocks 0.9%
DSB Group Holdings 5,000 59
Flextronics (USD) * 18,200 691
United Overseas Bank 31,232 231
--------
Total Singapore (Cost $662) 981
--------
SOUTH KOREA 0.3%
Common Stocks 0.3%
Korea Telecom ADR (USD) 5,100 188
Samsung Electronics 1,301 163
--------
Total South Korea (Cost $387) 351
--------
SPAIN 1.2%
Common Stocks 1.2%
Banco Bilbao Vizcaya Argentaria (EUR) 27,389 365
Banco Santander Central Hispano (EUR) 30,339 294
Empresa Nacional de Electricidad (EUR) 15,296 249
Telefonica (EUR) * 13,553 258
Telefonica ADR (USD) * 2,115 123
--------
Total Spain (Cost $1,233) 1,289
--------
17
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
SWEDEN 1.7%
Common Stocks 1.7%
Hennes & Mauritz (Class B) 8,420 $ 158
LM Ericsson (Class B) * 52,880 704
Nordic Baltic Holding * 35,103 263
Nordic Baltic Holding (DKK) 3,557 27
Securitas (Class B) 31,490 671
--------
Total Sweden (Cost $1,818) 1,823
--------
SWITZERLAND 1.8%
Common Stocks 1.8%
ABB 1,588 141
ABB (SEK) 1,248 111
Adecco 346 239
Credit Suisse Group 1,320 248
Nestle 300 622
Roche Holdings 23 210
UBS 2,782 385
--------
Total Switzerland (Cost $1,640) 1,956
--------
TAIWAN 0.3%
Common Stocks 0.3%
Hon Hai Precision 21,600 113
Taiwan Semiconductor Manufacturing * 61,129 185
--------
Total Taiwan (Cost $333) 298
--------
UNITED KINGDOM 10.1%
Common Stocks 10.1%
AstraZeneca Group 10,196 480
Autonomy Corporation * 1,000 51
Baltimore Technologies * 5,000 38
BP Amoco 29,000 246
British Telecom 17,000 200
Cable & Wireless 48,800 692
Celltech Group * 7,000 141
18
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Diageo 30,426 $ 287
Electrocomponents 7,000 70
Glaxo Wellcome 38,700 1,115
Granada Compass * 67,370 584
Hays 24,000 131
HSBC Holdings (HKD) 14,400 200
Kingfisher 23,800 143
Marconi 23,400 296
Reckitt Benckiser 5,000 66
Reed International 86,000 791
Rio Tinto 18,000 291
Royal Bank of Scotland Group 51,536 1,157
Shell Transport & Trading 110,000 886
SmithKline Beecham 46,300 598
Standard Chartered 18,000 260
Tomkins 48,372 116
Vodafone Group 359,523 1,502
WPP Group 43,000 579
--------
Total United Kingdom (Cost $10,520) 10,920
--------
UNITED STATES 44.6%
Common Stocks 44.6%
Affiliated Computer Services (Class 8,000 445
A) *
Altera * 10,400 425
ALZA * 5,000 405
America Online * 15,400 777
American Home Products 11,200 711
Analog Devices * 3,900 253
Applied Materials * 8,300 441
Applied Micro Circuits * 2,000 153
Ariba * 1,800 227
AT&T Liberty Media (ClassA) * 32,100 578
Automatic Data Processing 10,000 653
AXA Financial 9,000 487
Baker Hughes 19,000 653
Bank of New York 12,900 743
Baxter International 6,000 493
19
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Bristol-Myers Squibb 5,400 $ 329
Capital One Financial 5,700 360
Circuit City Stores 5,000 66
Cisco Systems * 28,000 1,508
Citigroup 22,964 1,208
Clear Channel Communications * 6,200 372
Coca-Cola 9,000 543
Comcast (Class A Special) * 12,100 493
Comverse Technology * 1,062 119
Concord EFS * 17,000 702
Corning 4,100 314
Crown Castle * 11,200 340
Danaher 5,000 316
Dell Computer * 23,600 695
Disney 17,000 609
El Paso Energy 4,000 251
Electronic Arts * 5,800 290
EMC 3,000 267
Exodus Communications * 9,000 302
Exxon Mobil 10,704 955
Fannie Mae 9,900 762
First Data 20,000 1,003
Firstar 10,600 209
Freddie Mac 28,600 1,716
GE 25,800 1,414
Gillette 7,300 255
Goldman Sachs Group 2,000 200
Hartford Financial Services Group 5,500 409
Hewlett-Packard 8,800 409
Home Depot 11,750 505
Intel 13,400 602
JDS Uniphase * 3,500 285
Johnson & Johnson 6,000 553
Juniper Networks * 700 137
Kimberly-Clark 2,500 165
KLA-Tencor * 5,000 169
Kroger * 23,400 528
20
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Loew's Companies 5,000 $ 228
Loews Corporation 3,000 273
LSI Logic * 14,500 477
Macromedia * 4,000 309
Maxim Integrated Products * 3,000 199
Mellon Financial 11,700 564
Merck 6,300 567
Microsoft * 24,700 1,702
Morgan Stanley Dean Witter 6,700 538
Nextel Communications * 10,200 390
Omnicom Group 4,600 424
Oracle * 15,000 495
PepsiCo 10,900 528
Pfizer 35,650 1,540
Pharmacia 7,000 385
Philip Morris 15,200 557
PMC-Sierra * 1,000 170
Providian Financial 4,000 416
Safeway * 14,300 782
Schering-Plough 6,900 357
Siebel Systems * 2,700 283
Silicon Storage Technology * 11,000 251
Solectron * 14,200 625
Sprint PCS * 9,700 370
State Street 2,000 249
Sun Microsystems * 3,000 333
Sysco 11,000 574
Target 16,000 442
Texas Instruments 4,500 221
United Technologies 5,500 384
UnitedHealth Group 6,500 711
USX-Marathon 30,900 840
VERITAS Software * 2,000 282
Verizon Communications 6,954 402
Viacom (Class B) * 11,497 654
Waddell & Reed Financial (Class A) 10,000 319
Wal-Mart 12,000 544
21
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Waters * 3,300 $ 239
Wellpoint Health 4,500 526
Networks *
Wells Fargo 15,000 695
Western Wireless * 13,000 617
WorldCom * 13,150 312
XO Communications * 10,000 339
-----------
Total United States (Cost $37,945) 47,917
-----------
SHORT-TERM INVESTMENTS 9.2%
Money Market Funds 9.2%
Reserve Investment Fund, 6.68%# 9,934,424 9,934
-----------
Total Short-Term Investments (Cost $9,934) 9,934
-----------
Total Investments in Securities
98.6% of Net Assets (Cost $89,978) $ 105,967
Futures Contracts
In thousands
Contract Unrealized
Expiration Value Gain (Loss)
---------- -------- ----------
Long, 12 FTSE 100 Index contracts,
$52,276 of cash pledged as initial margin 12/00 $ 1,130 $ (13)
Long, 7 DAX Index contracts,
$53,399 of cash pledged as initial margin 12/00 1,058 4
Long, 15 Nikkei 225 Index contracts,
$68,688 of cash pledged as initial margin 12/00 997 (127)
Net payments (receipts) of variation
margin to date 169
---------
Variation margin receivable
(payable) on open futures contracts 33
Other Assets Less Liabilities 1,459
---------
NET ASSETS $ 107,459
-----------
22
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Value
--------------------------------------------------------------------------------
In thousands
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 98
Accumulated net realized gain/loss - net of distributions 4,609
Net unrealized gain (loss) 15,836
Paid-in-capital applicable to 5,958,073 shares of $0.01 par
value capital stock outstanding; 2,000,000,000 shares
of the Corporation authorized 86,916
----------
NET ASSETS $ 107,459
==========
NET ASSET VALUE PER SHARE $ 18.04
==========
* Non-income producing
# Seven-day yield
ADR American depository receipt
EUR Euro
DKK Danish krone
GDR Global depository receipt
HKD Hong Kong dollar
SEK Swedish krona
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
-----------------------
Statement of Operations
--------------------------------------------------------------------------------
In thousands
Year
Ended
10/31/00
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $76) $ 901
Interest 443
Securities lending 13
---------
Total income 1,357
---------
Expenses
Investment management 660
Shareholder servicing 285
Custody and accounting 164
Registration 40
Legal and audit 28
Prospectus and shareholder reports 21
Directors 7
Miscellaneous 4
---------
Total expenses 1,209
---------
Net investment income (loss) 148
---------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 6,057
Futures (41)
Foreign currency transactions (86)
---------
Net realized gain (loss) 5,930
---------
Change in net unrealized gain or loss
Securities 2,051
Futures (136)
Other assets and liabilities
denominated in foreign currencies (17)
---------
Change in net unrealized gain or loss 1,898
---------
Net realized and unrealized gain (loss) 7,828
---------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 7,976
---------
The accompanying notes are an integral these financial part of statements.
24
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
----------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
In thousands
Year
Ended
10/31/00 10/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 148 $ 233
Net realized gain (loss) 5,930 2,327
Change in net unrealized gain or loss 1,898 9,348
------------------------
Increase (decrease) in net assets from operations 7,976 11,908
------------------------
Distributions to shareholders
Net investment income (282) (317)
Net realized gain (2,300) (1,428)
------------------------
Decrease in net assets from distributions (2,582) (1,745)
------------------------
Capital share transactions *
Shares sold 82,378 36,916
Distributions reinvested 2,529 1,702
Shares redeemed (56,679) (19,060)
------------------------
Increase (decrease) in net assets from capital
share transactions 28,228 19,558
------------------------
Net Assets
Increase (decrease) during period 33,622 29,721
Beginning of period 73,837 44,116
End of period $ 107,459 $ 73,837
=========================
* Share information
Shares sold 4,464 2,373
Distributions reinvested 146 120
Shares redeemed (3,056) (1,233)
------------------------
Increase (decrease) in shares outstanding 1,554 1,260
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
October 31, 2000
-----------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the corporation) is registered under
the Investment Company Act of 1940. The Global Stock Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation, and commenced operations on December 29, 1995.
The fund seeks long-term growth of capital through investments primarily in the
common stocks of established companies throughout the world, including the U.S.
The accompanying financial statements were prepared in accordance with generally
accepted accounting principles, which require the use of estimates made by fund
management.
Valuation Equity securities are valued at the last quoted sales price at the
time the valuations are made. A security that 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. Financial futures contracts are
valued at closing settlement prices.
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 denominated in foreign currencies
are translated into U.S. dollar values each day at the prevailing exchange rate,
using the mean of the bid and offer prices of such currencies against U.S.
dollars quoted by a major bank. Purchases and sales of securities and income and
expenses are translated into U.S. dollars at the prevailing exchange rate on the
dates of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains and losses is reflected as a component of
such gains and losses.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
26
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from net investment income and realized gains
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. Payments ("variation margin") made or received by the
fund to settle the daily fluctuations in the value of futures contracts are
recorded as unrealized gains or losses until the contracts are closed.
Unrealized gains and losses on futures contracts are included in Change in net
unrealized gain or loss in the accompanying financial statements.
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.
Futures Contracts At October 31, 2000, the fund was a party to futures
contracts, which provide for the future sale by one party and purchase by
another of a specified amount of a specific financial instrument at an agreed
upon price, date, time, and place. Risks arise from possible illiquidity of the
futures market and from movements in security values and currency values.
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 October 31, 2000, the value of loaned
securities was $1,801,000; aggregate collateral consisted of $1,832,000 in the
securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $84,961,000 and $66,326,000, respectively, for the year
ended October 31, 2000.
27
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
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.
In order for the fund's capital accounts and distributions to shareholders to
reflect the tax character of certain transactions, the following
reclassifications were made during the year ended October 31, 2000. The
reclassifications relate primarily to a tax practice that treats a portion of
the proceeds from each redemption of capital shares as a distribution of taxable
net investment income and/or realized capital gain. The results of operations
and net assets were not affected by the increases/(decreases) to these accounts.
--------------------------------------------------------------------------------
Undistributed net investment income $ (14,000)
Undistributed net realized gain (1,207,000)
Paid-in-capital 1,221,000
At October 31, 2000, the cost of investments for federal income tax purposes was
substantially the same as for financial reporting and totaled $89,978,000. Net
unrealized gain aggregated $15,989,000 at period-end, of which $20,159,000
related to appreciated investments and $4,170,000 to depreciated investments.
NOTE 4 - FOREIGN TAXES
The fund is subject to foreign income taxes imposed by certain countries in
which it invests. Foreign income taxes are accrued by the fund as a reduction of
dividend and interest income.
NOTE 5 - RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price International, Inc. (the manager), a wholly
owned subsidiary of T. Rowe Price Associates, Inc. (Price Associates). The
investment management agreement between the fund and the manager provides for an
annual investment management fee, of which $61,000 was payable at October 31,
2000. 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
28
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
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 0.295% for assets
in excess of $120 billion. At October 31, 2000, and for the year 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, 2001, which would cause the fund's
ratio of total expenses to average net assets to exceed 1.20%. Thereafter,
through October 31, 2003, 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
total expenses to average net assets to exceed 1.20%. Pursuant to this
agreement, $12,000 of management fees were not accrued by the fund for the year
ended October 31, 2000. Additionally, $305,000 of unaccrued management fees
related to a previous expense limitation are subject to reimbursement through
October 31, 2001.
In addition, the fund has entered into agreements with Price Associates and two
wholly owned subsidiaries of Price Associates, pursuant to which the fund
receives certain other services. Price Associates computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $342,000 for the year ended
October 31, 2000, of which $31,000 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 Price Associates. The Reserve Funds are offered
as cash management options only to mutual funds and other accounts managed by
Price Associates or T. Rowe Price International, 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 year ended October 31, 2000, totaled
$436,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the year ended October 31, 2000, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $1,670,000 with
certain affiliates of the manager and paid commissions of $2,000 related
thereto.
29
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Directors of T. Rowe Price International Funds, Inc. and
Shareholders of Global Stock Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Global Stock Fund (one of the portfolios comprising T. Rowe Price International
Funds, Inc., hereafter referred to as the "Fund") at October 31, 2000, and the
results of its operations, the changes in its net assets and the financial
highlights for each of the fiscal periods presented, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian and broker, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 2000
30
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
-----------------------------------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 10/31/00
--------------------------------------------------------------------------------
We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included:
. $644,000 from short-term capital gains,
. $2,869,000 from long-term capital gains subject to the 20% rate gains
category.
For corporate shareholders, $282,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
The fund will pass through foreign source income of $608,000 and foreign taxes
paid of $71,000
31
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
----------------------
ANNUAL MEETING RESULTS
--------------------------------------------------------------------------------
The T. Rowe Price Global Stock Fund held an annual meeting on October 25, 2000,
to approve a new investment management agreement, to elect directors, and to
ratify the appointment of PricewaterhouseCoopers LLP as the fund's independent
accountants. The results of voting were as follows, by number of shares:
For approval of a new investment
management agreement:
In favor: 3,223,639.503
Withheld: 45,212.284
Abstained: 116,138.415
Total: 3,384,990.202
For nominees to the Board of
Directors of the Global Stock
Fund:
M. David Testa
In favor: 3,276,667.161
Withheld: 108,323.041
Total: 3,384,990.202
Martin G. Wade
In favor: 3,275,720.942
Withheld: 109,269.260
Total: 3,384,990.202
Anthony W. Deering
In favor: 3,723,012.641
Withheld: 111,977.561
Total: 3,384,990.202
Donald W. Dick Jr.
In favor: 3,274,706.095
Withheld: 110,284.107
Total: 3,384,990.202
Paul M. Wythes
In favor: 3,270,050.345
Withheld: 114,939.857
Total: 3,384,990.202
To ratify the appointment of
PricewaterhouseCoopers LLP as
Independent accountants:
In favor: 3,251,865.727
Withheld: 22,843.725
Abstained: 110,280.750
Total: 3,384,990.202
32
<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.**
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 Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
** Based on a July 2000 survey for representative-assisted stock trades.
Services vary by firm, and commissions may vary depending on size of order.
33
<PAGE>
For fund and account information
or to conduct transactions,
24 hours, 7 days a week
By touch-tone telephone
Tele*Access 1-800-638-2587
By Account Access on the Internet
www.troweprice.com/access
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132
To open a brokerage account
or obtain information, call:
1-800-638-5660
For the hearing impaired, call:
1-800-367-0763
Internet address: www.troweprice.com
Plan Account Lines for retirement
plan participants:
The appropriate 800 number appears
on your retirement account statement.
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.
Walk-In Investor Centers:
For directions, call 1-800-225-5132
or visit our Web site.
Baltimore Area
Downtown - new address
105 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street Wellesley
Colorado Springs
2260 Briargate Parkway
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
San Francisco Area
1990 North California Boulevard
Suite 100
Walnut Creek
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor. F04-050 10/31/00
