Item 1. Report to Shareholders
T. Rowe Price International Stock Portfolio
- --------------------------------------------------------------------------------
June 30, 2004
Certified Semiannual Report
This report is certified under the Sarbanes-Oxley Act of 2002, which requires
that public companies, including mutual funds, affirm that the information
provided in their annual and semiannual shareholder reports fully and fairly
represents their financial position.
Financial Highlights
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
(Unaudited)
For a share outstanding throughout each period
- --------------------------------------------------------------------------------
6 Months Year
Ended Ended
6/30/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99
NET ASSET
VALUE
Beginning
of period $ 11.94 $ 9.26 $ 11.47 $ 15.07 $ 19.04 $ 14.52
Investment
activities
Net investment
income (loss) 0.12 0.13 0.10 0.24 0.07 0.12
Net realized
and unrealized
gain (loss) 0.06 2.69 (2.20) (3.59) (3.46) 4.69
Total from
investment
activities 0.18 2.82 (2.10) (3.35) (3.39) 4.81
Distributions
Net investment
income -- (0.13) (0.10) (0.25) (0.10) (0.07)
Net realized
gain -- (0.01) (0.01) -- (0.48) (0.22)
Total
distributions -- (0.14) (0.11) (0.25) (0.58) (0.29)
NET ASSET VALUE
End of period $ 12.12 $ 11.94 $ 9.26 $ 11.47 $ 15.07 $ 19.04
---------------------------------------------------------------
Ratios/Supplemental Data
Total return^ 1.51% 30.52% (18.29)% (22.21)% (17.84)% 33.32%
Ratio of total
expenses to
average net
assets 1.05%! 1.05% 1.05% 1.05% 1.05% 1.05%
Ratio of net
investment
income (loss)
to average
net assets 1.87%! 1.22% 0.93% 1.90% 0.43% 0.83%
Portfolio
turnover
rate 39.4%! 26.9% 28.8% 27.7% 41.7% 25.4%
Net assets,
end of period
(in thousands) $ 493,568 $ 508,876 $ 439,350 $ 550,329 $ 662,159 $ 707,330
^ 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.
Portfolio of Investments (1)
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
June 30, 2004 (Unaudited)
Shares Value
- --------------------------------------------------------------------------------
(Cost and value in $ 000s)
AUSTRALIA 1.3%
Common Stocks 0.8%
BHP Billiton 348,561 3,036
Coles Myer 179,000 1,069
4,105
Preferred Stocks 0.5%
News Corporation 270,569 2,210
2,210
Total Australia
(Cost $4,903) 6,315
BELGIUM 0.3%
Common Stocks 0.3%
Fortis ss. 24,822 551
UCB 14,909 695
Total Belgium
(Cost $806) 1,246
BRAZIL 0.9%
Common Stocks 0.9%
Petroleo Brasileiro
(Petrobras)
ADR (USD) 73,820 1,860
Tele Norte Leste
Participacoes
ADR (USD) ss. 198,100 2,522
Total Brazil
(Cost $3,778) 4,382
CANADA 0.4%
Common Stocks 0.4%
Research In Motion (USD) * 26,400 1,807
Total Canada
(Cost $1,030) 1,807
CHINA 0.4%
Common Stocks 0.4%
China Telecom (HKD) ss. 1,318,000 461
China Telecom, 144A (HKD) * 3,596,000 1,256
Total China
(Cost $1,451) 1,717
DENMARK 0.7%
Common Stocks 0.7%
Novo Nordisk, Series B 68,105 3,510
Total Denmark
(Cost $2,119) 3,510
FINLAND 1.0%
Common Stocks 1.0%
Nokia 353,597 5,108
Total Finland
(Cost $2,829) 5,108
FRANCE 13.7%
Common Stocks 13.7%
Aventis ss. 53,720 4,060
AXA ss. 136,344 3,006
BNP Paribas ss. 85,826 5,285
Compagnie de Saint-Gobain ss. 57,980 2,894
Credit Agricole ss. 175,129 4,266
France Telecom * 186,300 4,861
Groupe Danone ss. 28,360 2,477
Hermes 17,697 3,537
L'Oreal 23,722 1,897
Lafarge ss. 5,634 503
LVMH 47,375 3,431
Sanofi-Synthelabo ss. 85,165 5,405
Schneider Electric 51,089 3,491
Societe Generale 26,518 2,256
Societe Television
Francaise 1ss. 124,044 3,912
Sodexho Alliance 79,879 2,108
Thomson ss. 60,400 1,193
Total, Series B ss. 62,878 12,002
Vivendi Universal * 37,736 1,048
Total France
(Cost $45,286) 67,632
GERMANY 2.6%
Common Stocks 2.6%
Allianz 12,203 1,323
Bayer 23,082 666
Bayerische Hypo-und
Vereinsbank * 28,731 512
Celesio 12,072 722
Deutsche Bank ss. 23,474 1,847
E.On 16,780 1,212
Hypo Real Estate * 77,260 2,269
Rhoen-Klinikum ss. 18,139 996
SAP 14,060 2,334
Siemens 11,428 823
Total Germany
(Cost $10,532) 12,704
HONG KONG 1.0%
Common Stocks 1.0%
Cheung Kong Holdings 228,000 1,681
Li & Fung 956,000 1,397
Sun Hung Kai Properties 225,000 1,846
Total Hong Kong
(Cost $4,771) 4,924
INDIA 0.9%
Common Stocks 0.9%
Infosys Technologies 11,700 1,405
Oil & Natural Gas * 34,000 465
Oil & Natural Gas
(Regulation S shares) * 21,900 300
Zee Telefilms 748,300 2,060
Total India
(Cost $4,109) 4,230
ISRAEL 0.2%
Common Stocks 0.2%
Check Point Software
Technologies (USD) * 39,326 1,061
Total Israel
(Cost $743) 1,061
ITALY 4.6%
Common Stocks 4.6%
Alleanza Assicurazioni ss. 238,900 2,730
Banca Intesa 291,647 1,140
Banco Popolare di
Verona e Novara 61,800 1,063
ENI ss. 305,958 6,082
Mediaset 91,519 1,044
Mediolanum ss. 121,295 773
Telecom Italia ss. 123,985 386
Telecom Italia Mobile 525,894 2,985
Telecom Italia-RNC 855,747 1,892
UniCredito Italiano ss. 963,051 4,763
Total Italy
(Cost $14,908) 22,858
JAPAN 22.5%
Common Stocks 22.5%
Canon 114,800 6,037
Credit Saison 34,000 1,020
Dai Nippon Printing ss. 200,000 3,188
Daikin Industries 64,000 1,715
Daito Trust Construction 67,400 2,589
Daiwa Securities ss. 337,000 2,416
Denso 64,100 1,489
Fanuc 49,300 2,935
Fujisawa Pharmaceutical 70,200 1,660
Funai Electric 16,600 2,496
Hoya 20,500 2,141
JSR 98,900 1,854
KDDI 819 4,674
Keyence ss. 7,200 1,639
Kirin Brewery ss. 129,000 1,273
Kyocera 26,000 2,202
Marui 107,100 1,440
Matsui Securities 34,300 1,164
Mitsubishi 403,000 3,907
Mitsubishi Estate 140,000 1,734
Mitsui Fudosan 409,000 4,892
Mitsui Trust 238,000 1,741
NEC 389,000 2,732
Nidec 9,700 992
Nissan Motor 276,500 3,067
Nomura 371,000 5,480
Oji Paper ss. 193,000 1,236
Orix ss. 11,400 1,303
Rohm 20,500 2,448
Secom 114,000 4,827
Seven-Eleven Japan 110,000 3,581
Shin-Etsu Chemical 78,000 2,782
SMC 11,100 1,198
Softbank 23,300 1,023
Sumitomo Metal Industries 1,274,000 1,503
Sumitomo Mitsui Financial ss. 763 5,219
Suzuki Motor 108,000 1,898
Takefuji ss. 17,600 1,273
Teijin 335,000 1,250
Toyota Motor 99,000 4,002
Trend Micro 29,000 1,284
UFJ *ss. 734 3,235
Uniden 70,000 1,514
USS ss. 9,440 811
Yamanouchi Pharmaceutical 78,300 2,628
Yamato Transport 83,000 1,352
Total Japan
(Cost $94,717) 110,844
KAZAKHSTAN 0.3%
Common Stocks 0.3%
PetroKazakhstan (USD) 63,000 1,715
Total Kazakhstan
(Cost $1,732) 1,715
MALAYSIA 0.2%
Common Stocks 0.2%
Astro All Asia * 412,000 496
Astro All Asia
(Regulation S shares) * 345,000 416
Total Malaysia
(Cost $861) 912
MEXICO 1.6%
Common Stocks 1.6%
America Movil ADR,
Series L (USD) 57,600 2,095
Grupo Modelo, Series C 692,000 1,734
Grupo Televisa ADR (USD) 36,400 1,648
Wal-Mart de Mexico ss. 832,226 2,467
Total Mexico
(Cost $6,369) 7,944
NETHERLANDS 4.6%
Common Stocks 4.6%
Akzo Nobel 7,184 264
ASML Holding * ss. 139,980 2,372
Fortis (Unified shares) 40,160 887
ING Groep GDS 198,900 4,700
Koninklijke Numico GDS *ss. 90,227 2,903
Philips Electronics ss. 143,105 3,858
Reed Elsevier 52,800 742
Royal Dutch Petroleum 27,790 1,428
Royal KPN 290,900 2,218
Royal KPN 144A 78,500 599
STMicroelectronics ss. 61,110 1,342
Wolters Kluwer GDS 71,842 1,306
Total Netherlands
(Cost $17,066) 22,619
NORWAY 0.2%
Common Stocks 0.2%
Orkla, Series A ss. 45,020 1,127
Total Norway
(Cost $572) 1,127
RUSSIA 1.2%
Common Stocks 1.2%
Lukoil ADR (USD) 4,500 471
Lukoil ADR, 144A (USD) 14,220 1,490
Norilsk Nickel ADR (USD) ss. 30,600 1,687
YUKOS ADR (USD) ss. 64,754 2,064
Total Russia
(Cost $5,489) 5,712
SINGAPORE 0.9%
Common Stocks 0.9%
MobileOne Limited 1,156,000 1,007
United Overseas Bank 435,424 3,390
Total Singapore
(Cost $3,471) 4,397
SOUTH KOREA 1.5%
Common Stocks 1.5%
Kookmin Bank * 67,940 2,111
Samsung Electronics 8,056 3,326
South Korea Telecom 12,130 1,994
Total South Korea
(Cost $5,102) 7,431
SPAIN 4.0%
Common Stocks 4.0%
Banco Bilbao Vizcaya
Argentaria ss. 347,106 4,643
Banco Santander Central
Hispano ss. 300,135 3,119
Endesa ss. 96,548 1,863
Gas Natural ss. 78,820 1,890
Gestevision Telecino * 23,300 348
Inditex ss. 92,200 2,118
Repsol ss. 50,942 1,117
Telefonica 226,709 3,355
Telefonica ADR (USD) 30,881 1,378
Total Spain
(Cost $15,528) 19,831
SWEDEN 2.8%
Common Stocks 2.8%
Electrolux, Series B 60,981 1,171
Hennes & Mauritz, Series B 114,810 2,967
LM Ericsson, Series B * 476,309 1,405
Sandvik ss. 16,720 571
Securitas, Series B 409,852 5,119
Tele2 AB, Series B ss. 54,900 2,407
Total Sweden
(Cost $12,828) 13,640
SWITZERLAND 6.3%
Common Stocks 6.3%
Adecco *ss. 119,620 5,962
Credit Suisse Group * 141,800 5,041
Nestle 35,803 9,552
Roche Holding 26,400 2,615
UBS 111,988 7,894
Total Switzerland
(Cost $20,841) 31,064
TAIWAN 0.8%
Common Stocks 0.8%
China Trust Finance 892,600 996
Taiwan Semiconductor
Manufacturing * 2,193,111 3,157
Total Taiwan
(Cost $4,176) 4,153
UNITED KINGDOM 23.1%
Common Stocks 23.1%
Abbey National 90,481 842
AstraZeneca 116,380 5,220
Autonomy * 54,904 249
British Sky Broadcast 186,572 2,104
Cadbury Schweppes 180,840 1,560
Capita 104,700 605
Carnival 21,437 1,041
Centrica 447,800 1,823
Compass 1,159,180 7,071
David S. Smith 192,000 564
Diageo 231,289 3,117
Electrocomponents 278,440 1,802
GlaxoSmithKline 754,198 15,259
Hays 1,011,512 2,251
Hilton Group 155,000 776
Kesa Electricals 163,781 859
Kingfisher 1,275,044 6,617
MFI Furniture Group 576,100 1,580
Reed Elsevier 534,808 5,197
Rio Tinto 186,135 4,474
Royal Bank of Scotland Group 427,530 12,308
Shell Transport & Trading 1,091,209 8,002
Standard Chartered 83,500 1,359
Tesco 827,500 3,994
Tomkins 450,572 2,242
Unilever 347,075 3,404
United Business Media 180,663 1,661
Vodafone Group 5,202,754 11,389
William Morrison Supermarkets 526,100 2,210
WPP Group 459,350 4,663
Total United Kingdom
(Cost $100,604) 114,243
SHORT-TERM INVESTMENTS 1.8%
Money Market Funds 1.8%
T. Rowe Price Reserve
Investment Fund,
1.16% # 9,043,745 9,044
Total Short-Term Investments
(Cost $9,044) 9,044
SECURITIES LENDING COLLATERAL 18.8%
Money Market Pooled Account 18.8%
Investment in money market
pooled account managed by
JP Morgan Chase Bank
London 1.153% # 93,010,061 93,010
Total Securities Lending Collateral
(Cost $93,010) 93,010
Total Investments in Securities
118.6% of Net Assets
(Cost $488,675) $ 585,180
--------------------
(1) Denominated in currency of country of incorporation unless otherwise noted
# Seven-day yield
* Non-income producing
ss. All or a portion of this security is on loan at June 30, 2004--See Note 2
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 value of such securities at
period-end amounts to $3,345 and represents 0.7% of net assets
ADR American Depository Receipts
GDS Global Depository Shares
HKD Hong Kong dollar
USD United States dollar
The accompanying notes are an integral part of these financial statements.
Statement of Assets and Liabilities
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
June 30, 2004 (Unaudited)
(In thousands except shares and per share amounts)
Assets
Investments in securities, at value
(cost $488,675) $ 585,180
Other assets 3,176
Total assets 588,356
Liabilities
Obligation to return securities
lending collateral 93,010
Other liabilities 1,778
Total liabilities 94,788
NET ASSETS $ 493,568
--------------------
Net Assets Consist of:
Undistributed net investment income (loss) $ 4,721
Undistributed net realized gain (loss) (162,662)
Net unrealized gain (loss) 96,497
Paid-in-capital applicable to
40,708,372 shares of $0.0001
par value capital stock
outstanding; 1,000,000,000
shares of the Corporation
authorized 555,012
NET ASSETS $ 493,568
--------------------
NET ASSET VALUE PER SHARE $ 12.12
--------------------
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
(Unaudited)
($ 000s)
6 Months
Ended
6/30/04
Investment Income (Loss)
Income
Dividend (net of foreign
taxes of $1,022) $ 7,048
Securities lending 317
Interest 4
Other 1
Total income 7,370
Investment management and
administrative expense 2,649
Net investment income (loss) 4,721
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 12,788
Foreign currency transactions (83)
Net realized gain (loss) 12,705
Change in net unrealized gain (loss)
Securities (9,537)
Other assets and liabilities
denominated in foreign currencies (54)
Change in net unrealized gain (loss) (9,591)
Net realized and unrealized gain (loss) 3,114
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 7,835
--------------------
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
(Unaudited)
($ 000s)
6 Months Year
Ended Ended
6/30/04 12/31/03
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 4,721 $ 5,353
Net realized gain (loss) 12,705 (34,710)
Change in net unrealized gain (loss) (9,591) 151,565
Increase (decrease) in net
assets from operations 7,835 122,208
Distributions to shareholders
Net investment income -- (5,454)
Net realized gain -- (419)
Decrease in net assets
from distributions -- (5,873)
Capital share transactions *
Shares sold 29,546 182,589
Distributions reinvested -- 5,873
Shares redeemed (52,689) (235,271)
Increase (decrease) in net
assets from capital
share transactions (23,143) (46,809)
Net Assets
Increase (decrease) during period (15,308) 69,526
Beginning of period 508,876 439,350
End of period $ 493,568 $ 508,876
--------------- ---------------
(Including undistributed net
investment income of $4,721
at 6/30/04 and $0 at 12/31/03)
*Share information
Shares sold 2,417 19,072
Distributions reinvested -- 515
Shares redeemed (4,317) (24,418)
Increase (decrease) in
shares outstanding (1,900) (4,831)
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
June 30, 2004 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Series, Inc. (the corporation) is registered under
the Investment Company Act of 1940 (the 1940 Act). The International Stock
Portfolio (the fund), a diversified, open-end management investment company, is
one portfolio established by the corporation and commenced operations on March
31, 1994. The fund seeks long-term growth of capital through investments
primarily in the common stocks of established, non-U.S. companies. Shares of the
fund are currently offered only through certain insurance companies as an
investment medium for both variable annuity contracts and variable life
insurance policies.
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
The fund values its investments and computes its net asset value per share 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 at the time the valuations are made, except for OTC
Bulletin Board securities, which are valued at the mean of the latest bid and
asked prices. 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 quoted sale price for international securities.
Investments in mutual funds are valued at the mutual fund's closing net asset
value per share 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 the T. Rowe Price Valuation Committee,
established by the fund's Board of Directors.
Most foreign markets close before the close of trading on the NYSE. If the fund
determines that developments between the close of a foreign market and the close
of the NYSE will, in its judgment, materially affect the value of some or all of
its portfolio securities, which in turn will affect the fund's share price, the
fund will adjust the previous closing prices to reflect the fair value of the
securities as of the close of the NYSE, as determined in good faith by the T.
Rowe Price Valuation Committee, established by the fund's Board of Directors. A
fund may also fair value securities in other situations, such as when a
particular foreign market is closed but the fund is open. In deciding whether to
make fair value adjustments, the fund reviews a variety of factors, including
developments in foreign markets, the performance of U.S. securities markets, and
the performance of instruments trading in U.S. markets that represent foreign
securities and baskets of foreign securities. The fund uses outside pricing
services to provide it with closing market prices and information used for
adjusting those prices. The fund cannot predict how often it will use closing
prices and how often it will adjust those prices. As a means of evaluating its
fair value process, the fund routinely compares closing market prices, the next
day's opening prices in the same markets, and adjusted prices.
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 asked 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 security gains and losses.
Investment Transactions, Investment Income, and Distributions
Income and expenses are recorded on the accrual basis. Dividends received from
mutual fund investments are reflected as dividend income; capital gain
distributions are reflected as realized gain/loss. Dividend income and capital
gain distributions are recorded on the ex-dividend date. Investment transactions
are accounted for on the trade date. Realized gains and losses are reported on
the identified cost basis. Distributions to shareholders are recorded on the
ex-dividend date. Income distributions are declared and paid on an annual basis.
Capital gain distributions, if any, are declared and paid by the fund, typically
on an annual basis.
Other
In the normal course of business, the fund enters into contracts that provide
general indemnifications. The fund's maximum exposure under these arrangements
is dependent on claims that may be made against the fund in the future and,
therefore, cannot be estimated; however, based on experience, the risk of
material loss from such claims is considered remote.
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 June 30, 2004, the value of loaned
securities was $88,220,000; aggregate collateral consisted of $93,010,000 in the
money market pooled account.
Other
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $96,972,000 and $114,550,000, respectively, for the six months ended
June 30, 2004.
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 under Subchapter M of the
Internal Revenue Code 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. Financial
records are not adjusted for temporary differences. 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 June
30, 2004.
The fund intends to retain realized gains to the extent of available capital
loss carryforwards. As of December 31, 2003, the fund had $175,063,000 of unused
capital loss forwards, of which $54,322,000 expire in 2009, $70,854,000 expire
in 2010, and $49,887,000 expire in 2011.
At June 30, 2004, the cost of investments for federal income tax purposes was
$488,675,000. Net unrealized gain aggregated $96,497,000 at period-end, of which
$110,235,000 related to appreciated investments and $13,738,000 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 and
administrative agreement between the fund and the manager provides for an
all-inclusive annual fee equal to 1.05% of the fund's average daily net assets.
The fee is computed daily and paid monthly. The agreement provides that
investment management, shareholder servicing, transfer agency, accounting, and
custody services are provided to the fund, and interest, taxes, brokerage
commissions, directors' fees and expenses, and extraordinary expenses are paid
directly by the fund. At June 30, 2004, $506,000 was payable under the
agreement.
The fund may invest in the T. Rowe Price Reserve Investment Fund and the 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 to mutual funds, trusts, and other accounts managed
by Price Associates and/or its affiliates, and are not available for direct
purchase by members of the public. The Reserve Funds pay no investment
management fees. During the six months ended June 30, 2004, dividend income from
the Reserve Funds totaled $51,000.
T. Rowe Price International Stock Portfolio
Certified Semiannual Report
Information on Proxy Voting
- --------------------------------------------------------------------------------
A description of the policies and procedures that the T. Rowe Price
International Stock Portfolio uses to determine how to vote proxies relating to
portfolio securities is available, without charge, upon request by calling
1-800-225-5132. It also appears in the fund's Statement of Additional
Information (Form 485B), which can be found on the SEC's Web site, www.sec.gov.
Item 2. Code of Ethics.
A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions is filed as an
exhibit to the registrant's annual Form N-CSR. No substantive amendments were
approved or waivers were granted to this code of ethics during the registrant's
most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant's annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant's annual Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Not applicable. The complete schedule of investments is included in Item 1 of
this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 10. 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) The registrant's principal executive officer and principal financial officer
are aware of no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 11. Exhibits.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is filed
with the registrant's annual Form N-CSR.
(2) Separate certifications by the registrant's principal executive officer
and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of
1940, are attached.
(3) Written solicitation to repurchase securities issued by closed-end
companies: not applicable.
(b) A certification by the registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940,
is attached.
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 International Series, Inc.
By: /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date: August 16, 2004
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: August 16, 2004
By: /s/ Joseph A. Carrier
Joseph A. Carrier
Principal Financial Officer
Date: August 16, 2004