Item 1. Report to Shareholders
T. Rowe Price Institutional Foreign Equity Fund
- --------------------------------------------------------------------------------
Certified Financials
Financial Highlights
T. Rowe Price Institutional Foreign Equity Fund
Certified Financials
(Unaudited)
For a share outstanding throughout each period
------------------------------------------------------------------
6 Months Year
Ended Ended
4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
NET ASSET VALUE
Beginning of
period $ 10.65 $ 12.70 $ 19.16 $ 20.08 $ 17.03 $ 16.51
Investment activities
Net investment
income (loss) 0.09 0.18 0.39 0.13 0.21 0.28
Net realized
and unrealized
gain (loss) 0.08 (1.81) (5.35) 0.46 3.26 0.93
Total from
investment
activities 0.17 (1.63) (4.96) 0.59 3.47 1.21
Distributions
Net investment
income (0.15) (0.42) (0.11) (0.17) (0.29) (0.21)
Net realized
gain (0.02) -- (1.39) (1.34) (0.13) (0.48)
Total
distributions (0.17) (0.42) (1.50) (1.51) (0.42) (0.69)
NET ASSET VALUE
End of
period $ 10.65 $ 10.65 $ 12.70 $ 19.16 $ 20.08 $ 17.03
- --------------------------------------------------------------------------------
Ratios/Supplemental Data
Total
return^ 1.63% (13.43)% (28.02)% 2.45% 20.79% 7.65%
Ratio of total
expenses to
average net
assets 0.76%! 0.75% 0.74% 0.74% 0.74% 0.74%
Ratio of net
investment
income (loss)
to average
net assets 1.66%! 1.06% 2.25% 0.57% 1.08% 1.58%
Portfolio
turnover
rate 22.0%! 20.0% 21.4% 39.7% 18.2% 18.6%
Net assets,
end of period
(in millions) $ 1,169 $ 1,168 $ 1,903 $ 3,138 $ 3,361 $ 3,204
^ 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.
Statement of Net Assets
T. Rowe Price Institutional Foreign Equity Fund
Certified Financials
April 30, 2003 (Unaudited)
Shares Value
- --------------------------------------------------------------------------------
In thousands
AUSTRALIA 1.1%
Common Stocks 0.6%
BHP Billiton 1,174,000 $ 6,646
6,646
Preferred Stocks 0.5%
News Corporation (misc. symbol) 995,779 5,887
5,887
Total Australia (Cost $11,523) 12,533
BELGIUM 0.7%
Common Stocks 0.7%
Dexia (misc. symbol) 350,210 4,021
Fortis (misc. symbol) 138,978 2,337
UCB (misc. symbol) 47,379 1,314
Total Belgium (Cost $5,973) 7,672
BRAZIL 0.6%
Common Stocks 0.6%
Grupo Pao de Acucar
ADR (USD) 103,100 1,495
Petroleo Brasileiro (Petrobras)
ADR (USD) 303,560 5,194
Total Brazil (Cost $7,361) 6,689
CANADA 0.4%
Common Stocks 0.4%
Alcan Aluminum (misc. symbol) 55,550 1,627
Celestica (USD) * 55,813 645
Royal Bank of Canada (misc. symbol) 69,190 2,885
Total Canada (Cost $3,745) 5,157
CHINA 0.2%
Common Stocks 0.2%
China Telecom
Limited (HKD) * 14,818,000 2,850
Total China (Cost $2,609) 2,850
DENMARK 0.6%
Common Stocks 0.6%
Novo Nordisk 197,800 7,177
Total Denmark (Cost $6,279) 7,177
FINLAND 1.8%
Common Stocks 1.8%
Nokia (misc. symbol) 1,246,744 $ 21,133
Total Finland (Cost $4,686) 21,133
FRANCE 15.9%
Common Stocks 15.9%
Aventis (misc. symbol) 338,725 17,236
AXA (misc. symbol) 455,544 6,932
BNP Paribas (misc. symbol) 509,536 23,962
Cap Gemini * 18,809 586
Carrefour (misc. symbol) 38,130 1,661
Compagnie de Saint-Gobain (misc. symbol) 186,204 6,458
France Telecom (misc. symbol) 528,700 12,237
Groupe Danone (misc. symbol) 12,740 1,806
Hermes (misc. symbol) 51,510 7,176
L'Oreal (misc. symbol) 62,622 4,485
Lafarge (misc. symbol) 13,868 933
LVMH (misc. symbol) 165,300 7,227
Orange * 344,420 2,765
Pinault Printemps Redoute (misc. symbol) 24,975 1,748
Sanofi-Synthelabo (misc. symbol) 313,237 18,720
Schneider Electric * 162,575 7,711
Societe Generale (misc. symbol) 64,414 3,947
Sodexho Alliance (misc. symbol) 394,779 9,000
STMicroelectronics (misc. symbol) 202,374 4,191
Television Francaise (misc. symbol) 310,970 8,751
Thomson * 174,355 2,560
TotalFinaElf,
Series B (misc. symbol) 261,327 34,332
Vivendi Universal 114,897 1,876
Total France (Cost $154,508) 186,300
GERMANY 2.1%
Common Stocks 2.1%
Allianz (misc. symbol) 38,519 2,728
Bayer (misc. symbol) 70,274 1,285
Bayerische Hypo-und
Vereinsbank (misc. symbol) 54,318 725
Deutsche Bank (misc. symbol) 121,725 6,307
E.On (misc. symbol) 59,416 2,849
Gehe (misc. symbol) 114,783 4,561
Rhoen-Klinikum 47,284 1,771
SAP 25,090 2,575
Siemens 37,631 1,880
Total Germany (Cost $27,603) 24,681
HONG KONG 0.5%
Common Stocks 0.5%
Cheung Kong Holdings 376,000 $ 2,078
China Mobile (Hong Kong) 1,882,000 3,776
Total Hong Kong (Cost $5,686) 5,854
INDIA 0.6%
Common Stocks 0.6%
Hindustan Lever 2,234,600 6,824
Total India (Cost $11,193) 6,824
ISRAEL 0.1%
Common Stocks 0.1%
Check Point Software
Technologies (USD) * 77,916 1,226
Total Israel (Cost $1,513) 1,226
ITALY 6.1%
Common Stocks 6.1%
Alleanza Assicurazioni (misc. symbol) 827,970 7,758
Banca Intesa (misc. symbol) 2,128,633 5,522
ENI (misc. symbol) 1,079,631 15,415
Mediaset (misc. symbol) 579,712 4,965
Mediolanum (misc. symbol) 368,085 1,926
Olivetti *(misc. symbol) 1,485,987 1,690
Telecom Italia
(Ordinary shares) (misc. symbol) 734,944 6,015
Telecom Italia
(Savings shares) 852,900 4,206
Telecom Italia
Mobile (misc. symbol) 2,336,246 11,023
UniCredito
Italiano (misc. symbol) 2,978,439 13,054
Total Italy (Cost $58,254) 71,574
JAPAN 13.4%
Common Stocks 13.4%
Canon 364,000 14,734
Credit Saison (misc. symbol) 219,300 4,134
Daiichi Pharmaceutical 111,700 1,416
Denso 117,800 1,682
Fanuc 48,100 1,971
Fuji Television Network 639 2,259
Fujisawa Pharmaceutical (misc. symbol) 371,000 6,293
Hitachi Chemical (misc. symbol) 269,000 2,435
Honda Motor 287,400 9,533
Ito-Yokado 129,000 $ 3,039
Japan Telecom Holdings 674 1,845
KDDI (misc. symbol) 2,339 7,111
Keyence 16,600 2,672
Keyence (Bonus shares) * 1,660 267
Kyocera 41,100 2,009
Marui 386,000 3,219
Mitsubishi Estate 750,000 4,396
Mitsui Fudosan 1,197,000 6,453
Murata Manufacturing 16,500 589
Nomura Securities (misc. symbol) 495,000 4,909
NTT DoCoMo 5,372 11,098
Rohm 47,300 4,882
Secom (misc. symbol) 384,000 8,965
Seven-Eleven Japan (misc. symbol) 333,000 7,942
Shin-Etsu Chemical 94,500 2,833
Shiseido (misc. symbol) 564,000 5,158
SMC 36,400 2,745
Sony (misc. symbol) 238,380 5,805
Sumitomo (misc. symbol) 251,000 1,012
Suzuki Motor 349,000 4,138
Takeda Chemical Industries 110,000 4,037
Toppan Printing 34,000 216
Toyota Motor 369,600 8,380
Yamanouchi Pharmaceutical 274,000 6,926
Yamato Transport 131,000 1,468
Total Japan (Cost $192,164) 156,571
LUXEMBOURG 0.0%
Common Stocks 0.0%
SES Global
(1 FDR Represents
1 A share) 65,520 385
Total Luxembourg (Cost $1,047) 385
MALAYSIA 0.1%
Common Stocks 0.1%
Sime Darby 694,000 913
Total Malaysia (Cost $994) 913
MEXICO 1.5%
Common Stocks 1.5%
America Movil ADR
Series L (USD) 295,500 4,956
Femsa UBD Units
(Represents 1 Series B
and 4 Series D shares) 1,332,690 $ 5,027
Grupo Financiero BBVA
Bancomer, Series B *(misc. symbol) 4,513,400 3,917
Wal-Mart de Mexico (misc. symbol) 1,433,000 3,960
Total Mexico (Cost $15,509) 17,860
NETHERLANDS 5.0%
Common Stocks 5.0%
Akzo Nobel 23,031 513
ASML Holding * 486,140 4,207
Equant *(misc. symbol) 37,950 221
Fortis (misc. symbol) 285,884 4,769
ING Groep (misc. symbol) 753,620 12,260
Philips Electronics 579,174 10,795
Reed Elsevier 378,880 4,321
Royal Dutch Petroleum (misc. symbol) 154,478 6,330
Royal KPN * 914,800 6,096
VNU 178,163 5,180
Wolters Kluwer 247,120 3,225
Total Netherlands (Cost $61,545) 57,917
NORWAY 0.4%
Common Stocks 0.4%
Orkla, Series A (misc. symbol) 217,395 3,793
Statoil (misc. symbol) 183,070 1,453
Total Norway (Cost $3,602) 5,246
PORTUGAL 0.1%
Common Stocks 0.1%
Jeronimo Martins * 83,181 659
Total Portugal (Cost $673) 659
RUSSIA 0.7%
Common Stocks 0.7%
Lukoil ADR (USD) 144A + 39,090 2,702
YUKOS ADR (USD) 29,430 5,180
Total Russia (Cost $5,081) 7,882
SINGAPORE 0.9%
Common Stocks 0.9%
MobileOne Limited 3,207,000 2,278
United Overseas Bank 1,445,560 8,474
Total Singapore (Cost $11,626) 10,752
SOUTH AFRICA 0.1%
Common Stocks 0.1%
Nedcor 126,400 $ 1,706
Total South Africa (Cost $1,434) 1,706
SOUTH KOREA 2.4%
Common Stocks 2.4%
KT Corporation ADR (USD) 243,285 4,924
POSCO ADR (USD) 155,342 3,192
Samsung Electronics 40,493 10,165
Shinhan Financial 324,000 3,200
South Korea Telecom 45,260 6,296
Total South Korea (Cost $22,374) 27,777
SPAIN 3.9%
Common Stocks 3.9%
Banco Bilbao Vizcaya Argentaria 974,653 9,830
Banco Santander
Central Hispano 1,047,363 8,244
Endesa 334,379 4,752
Gas Natural (misc. symbol) 268,070 5,140
Inditex 287,600 5,743
Repsol 189,232 2,761
Telefonica 589,987 6,537
Telefonica ADR (USD) 94,007 3,126
Total Spain (Cost $42,124) 46,133
SWEDEN 3.2%
Common Stocks 3.2%
Electrolux, Series B (misc. symbol) 234,305 4,400
Hennes & Mauritz, Series B (misc. symbol) 412,450 9,184
LM Ericsson, Series B * 1,624,183 1,480
Nordea (misc. symbol) 662,445 3,518
Sandvik (misc. symbol) 47,170 1,200
Securitas, Series B (misc. symbol) 1,451,135 17,044
Total Sweden (Cost $35,156) 36,826
SWITZERLAND 5.8%
Common Stocks 5.8%
Adecco (misc. symbol) 379,120 14,552
Credit Suisse Group * 80,720 1,930
Nestle (misc. symbol) 142,752 29,135
Roche (Participation certificates) 92,000 5,861
UBS (misc. symbol) 340,832 16,189
Total Switzerland (Cost $47,832) 67,667
TAIWAN 0.7%
Common Stocks 0.7%
Chinatrust Financial Holdings * 1,424,000 $ 1,113
Taiwan Semiconductor
Manufacturing 4,721,101 6,487
Total Taiwan (Cost $9,515) 7,600
THAILAND 0.3%
Common Stocks 0.3%
Bangkok Bank (Local shares) * 2,823,000 3,460
Total Thailand (Cost $3,552) 3,460
UNITED KINGDOM 28.2%
Common Stocks 28.2%
Abbey National 259,068 1,842
AstraZeneca 369,577 14,513
Autonomy * 168,944 438
BG Group 625,047 2,502
BP 1,528,304 9,693
Brambles 1,109,460 3,301
Cadbury Schweppes 816,717 4,553
Carnival 95,466 2,385
Celltech * 412,881 1,687
Centrica 1,437,110 3,822
Compass 3,399,450 15,660
David S. Smith 413,685 1,069
Diageo 846,260 9,394
Electrocomponents 1,088,510 5,441
Friends Provident (misc. symbol) 458,630 721
GKN 94,050 310
GlaxoSmithKline 2,531,021 50,768
Granada 952,933 1,040
Hays 2,431,666 3,248
Hilton Group 456,940 1,118
HSBC (HKD) (misc. symbol) 248,800 2,720
Kingfisher 2,445,376 9,564
Reckitt Benckiser 120,000 2,118
Reed Elsevier 3,518,472 28,084
Rio Tinto 861,906 16,489
Royal Bank of Scotland 1,326,066 34,807
Shell Transport & Trading 3,619,190 21,695
Standard Chartered 271,600 3,032
Tesco 3,455,984 10,945
Tomkins 1,806,866 6,127
Unilever 1,242,176 $ 12,220
United Business Media 258,689 1,034
Vodafone 17,103,757 33,787
Woolworths 977,477 547
WPP Group 1,843,170 13,127
Total United Kingdom (Cost $358,840) 329,801
Short-Term investments 1.3%
Money Market Funds 1.3%
T. Rowe Price Reserve
Investment Fund
1.30% # 15,207,403 15,207
Total Short-Term
Investments (Cost $15,207) 15,207
SECURITIES LENDING COLLATERAL 26.6%
Money Market Pooled Account 26.6%
Investment in money market
pooled account managed by
JP Morgan
Chase Bank, London 310,520,676 310,521
Total Securities
Lending Collateral (Cost $310,521) 310,521
T. Rowe Price Institutional Foreign Equity Fund
Certified Financials
April 30, 2003 (Unaudited)
Value
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In thousands
Total Investments in Securities
125.3% of Net Assets (Cost $1,439,729) $ 1,464,553
Other Assets Less
Liabilities Including
$310,521 obligation to
return securities
lending collateral (295,403)
NET ASSETS $ 1,169,150
---------------
Net Assets Consist of:
Undistributed net
investment income (loss) $ 8,891
Undistributed net
realized gain (loss) (462,123)
Net unrealized gain (loss) 25,304
Paid-in-capital applicable
to 109,767,212 shares of
$0.01 par value capital
stock outstanding;
1,000,000,000 shares
authorized 1,597,078
NET ASSETS $ 1,169,150
---------------
NET ASSET VALUE PER SHARE $ 10.65
---------------
# Seven-day yield
* Non-income producing
(misc.
symbol) All or a portion of this security is on loan at April 30,
2003-See Note 2
+ Security contains restrictions as to public resale pursuant to the
Securities Act of 1933 and related rules-total of such securities at
period-end amounts to $2,702,000 and represents 0.2% of net assets
144A Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be resold in transactions exempt from registration only to
qualified institutional buyers-total of such securities at period-end
amounts to $2,702,000 and represents 0.2% of net assets
ADR American Depository Receipts
FDR Fiduciary Depository Receipt
HKD Hong Kong dollar
USD United States dollar
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price Institutional Foreign Equity Fund
Certified Financials
(Unaudited)
In thousands
6 Months
Ended
4/30/03
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $1,829) $ 13,083
Securities lending 375
Interest (net of foreign taxes of $2) 179
Total income 13,637
Expenses
Investment management 3,950
Custody and accounting 258
Registration 28
Legal and audit 20
Shareholder servicing 6
Directors 5
Prospectus and shareholder reports 2
Total expenses 4,269
Net investment income (loss) 9,368
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (42,216)
Foreign currency transactions 841
Net realized gain (loss) (41,375)
Change in net unrealized gain (loss)
Securities 50,065
Other assets and
liabilities denominated
in foreign currencies 385
Change in net
unrealized gain (loss) 50,450
Net realized and
unrealized gain (loss) 9,075
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 18,443
----------
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price Institutional Foreign Equity Fund
Certified Financials
(Unaudited)
In thousands
6 Months Year
Ended Ended
4/30/03 10/31/02
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 9,368 $ 16,774
Net realized gain (loss) (41,375) (211,536)
Change in net unrealized gain (loss) 50,450 28,378
Increase (decrease) in net assets
from operations 18,443 (166,384)
Distributions to shareholders
Net investment income (16,128) (58,733)
Net realized gain (2,150) --
Decrease in net assets
from distributions (18,278) (58,733)
Capital share transactions *
Shares sold 143,457 208,478
Distributions reinvested 14,774 43,452
Shares redeemed (157,376) (762,108)
Increase (decrease) in net assets
from capital share transactions 855 (510,178)
Net Assets
Increase (decrease) during period 1,020 (735,295)
Beginning of period 1,168,130 1,903,425
End of period $ 1,169,150 $ 1,168,130
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*Share information
Shares sold 13,723 17,245
Distributions reinvested 1,413 3,342
Shares redeemed (15,090) (60,713)
Increase (decrease) in shares outstanding 46 (40,126)
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price Institutional Foreign Equity Fund
Certified Financials
April 30, 2003 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Institutional International Funds, Inc. (the corporation) is
registered under the Investment Company Act of 1940 (the 1940 Act). The
Institutional Foreign Equity Fund (the fund), a diversified, open-end management
investment company, is one of the portfolios established by the corporation and
commenced operations on September 7, 1989. The fund seeks long-term growth of
capital through investments primarily in the common stocks of established,
non-U.S. companies.
The accompanying financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America, which
require the use of estimates made by fund management.
Valuation
Investments are valued at the close of the New York Stock Exchange (NYSE),
normally 4 p.m. ET, each day that the NYSE is open for business. Equity
securities listed or regularly traded on a securities exchange or in the
over-the-counter market are valued at the last quoted sale price, or official
closing price for certain markets, 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.
Listed securities not traded on a particular day are valued at the mean of the
latest bid and ask prices for domestic securities and the last quoted sale price
for international securities.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation.
Other investments and those 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.
Most foreign markets close before the NYSE. Developments that could affect the
values of securities that occur between the close of a foreign market and the
close of the NYSE normally will not be reflected in security valuations.
However, if such developments are so significant that they will, in the judgment
of the officers of the fund, clearly and materially affect the value of
securities, the previous closing prices may be adjusted to reflect the fair
value of the securities as of the close of the NYSE, 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, including investments, 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 ask prices of such currencies against U.S. dollars
as quoted by a major bank. Purchases and sales of securities, income, and
expenses are translated into U.S. dollars at the prevailing exchange rate on the
date of the transaction. The effect of changes in foreign currency exchange
rates on realized and unrealized security gains and losses is reflected as a
component of such gains and losses.
Expenses Paid Indirectly
Credits earned on temporarily uninvested cash balances at the custodian are used
to reduce the fund's custody charges.
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.
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.
It receives as collateral cash and U.S. government securities valued at 102% to
105% of the value of the securities on loan. Cash collateral is invested in a
money market pooled account managed by the fund's lending agent in accordance
with investment guidelines approved by fund management. Collateral is maintained
over the life of the loan in an amount not less than the value of loaned
securities, as determined at the close of fund business each day; any additional
collateral required due to changes in security values is delivered to the fund
the next business day. 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 the securities. Securities
lending revenue recognized by the fund consists of earnings on invested
collateral and borrowing fees, net of any rebates to the borrower and
compensation to the lending agent. At April 30, 2003, the value of loaned
securities was $299,667,000; aggregate collateral consisted of $310,521,000 in
the money market pooled account.
Other
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $123,123,000 and $131,777,000, respectively, for the six months ended
April 30, 2003.
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 to
shareholders all of its taxable income and gains. Federal income tax regulations
differ from generally accepted accounting principles; therefore, distributions
determined in accordance with tax regulations may differ in amount or character
from net investment income and realized gains for financial reporting purposes.
Financial reporting records are adjusted for permanent book/tax differences to
reflect tax character. Temporary differences are not adjusted. The amount and
character of tax-basis distributions and composition of net assets are finalized
at fiscal year-end; accordingly, tax-basis balances have not been determined as
of April 30, 2003.
The fund intends to retain realized gains to the extent of available capital
loss carryforwards. As of October 31, 2002, the fund had $420,480,000 of unused
capital loss carryforwards, of which $206,390,000 expire in 2009, and
$214,090,000 expire in 2010.
At April 30, 2003, the cost of investments for federal income tax purposes was
substantially the same as for financial reporting and totaled $1,439,729,000.
Net unrealized gain aggregated $25,304,000 at period-end, of which $229,300,000
related to appreciated investments and $203,996,000 related 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
income.
Gains realized upon disposition of Indian securities held by the fund are
subject to capital gains tax in India, payable prior to repatriation of sale
proceeds. The tax is computed on net realized gains, and realized losses in
excess of gains may be carried forward eight years to offset future gains. In
addition, the fund accrues a deferred tax liability for net unrealized gains on
Indian securities.
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),
which is wholly owned by T. Rowe Price Group, Inc. The investment management
agreement between the fund and the manager provides for an annual investment
management fee equal to 0.70% of the fund's average daily net assets. The fee
is computed daily and paid monthly. At April 30, 2003, investment management
fee payable totaled $648,000.
In addition, the fund has entered into service agreements with Price Associates
and a wholly owned subsidiary of Price Associates (collectively, Price). Price
Associates computes the daily share price and maintains the financial records of
the fund. T. Rowe Price Services, Inc. provides shareholder and administrative
services in its capacity as the fund(Y)s transfer and dividend disbursing agent.
Expenses incurred pursuant to these service agreements totaled $60,000 for the
six months ended April 30, 2003, of which $9,000 was payable at period-end.
The fund may invest in the T. Rowe Price Reserve Investment Fund and T. Rowe
Price 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,
trusts, and other accounts managed by Price Associates and/or 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, 2003, totaled $102,000 and are reflected as interest
income in the accompanying Statement of Operations.
Item 9. Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial Officer
have evaluated the registrant's disclosure controls and procedures within 90
days of this filing and have concluded that the registrant's disclosure controls
and procedures were effective, as of that date, in ensuring that information
required to be disclosed by the registrant in this Form N-CSR was recorded,
processed, summarized, and reported timely.
(b) At the date of filing this Form N-CSR, the registrant's Principal Executive
Officer and Principal Financial Officer are aware of no significant changes in
the registrant's internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
T. Rowe Price Institutional International Funds, Inc.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date June 12, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date June 12, 2003
By /s/ Joseph A. Carrier
Joseph A. Carrier
Principal Financial Officer
Date June 12, 2003