Item 1. Report to Shareholders
T. Rowe Price International Equity Index Fund
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Certified
Annual
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.
T. Rowe Price International Equity Index Fund
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Certified Annual Report
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.
[Graphic Omitted]
INTERNATIONAL EQUITY INDEX FUND
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As of 10/31/03
International Equity Index Fund $8,584
FTSE Developed ex North America Index $8,774
FTSE IXF
11/30/00 10 10
10/31/01 7.831 7.78
10/31/02 6.843 6.739
10/31/03 8.774 8.584
Average Annual Compound Total Return
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Since
Inception
Periods Ended 10/31/03 1 Year 11/30/00
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International Equity Index Fund 27.37% -5.10%
FTSE Developed ex North America Index 28.22 -4.38
Returns do not reflect taxes that the shareholder may pay on fund distributions
or the redemption of fund shares. Past performance cannot guarantee future
results.
T. Rowe Price International Equity Index Fund
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Certified Annual Report
Dear Shareholder,
We are pleased that international stocks soared and the fund posted a powerful
return of 27.37% during the 12 months ended October 31, 2003. As would be
expected in an index fund, results were in line with the performance of the FTSE
Developed ex North America Index, the fund's benchmark.
Major International Index Returns
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12-Month
Period Ended 10/31/03 Return
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MSCI EMF Latin America Index 59.75%
MSCI EAFE Index 27.57
MSCI Europe Index 24.71
MSCI Japan Index 33.18
MSCI Pacific Ex-Japan 37.19
S&P 500 Index 20.80
The fund seeks to match the performance of its benchmark, a broadly diversified
stock market index based on the investable market capitalization of more than
1,000 predominantly larger companies listed in 21 countries. The index's major
markets include the U.K., Japan, and developed countries in Europe and the
Pacific Rim.
The Major International Index Returns table shows how various international
markets performed over the fund's fiscal year. As you can see, Latin American
and other emerging markets outpaced the developed markets of Europe and Japan
over the 12-month period, and all international stocks surpassed U.S. shares
measured by the S&P 500 Index.
Top 5 Sectors
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Percent of Percent of
Net Assets Net Assets
10/31/03 10/31/02
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Financials 26.6% 25.5%
Consumer Discretionary 12.2 12.5
Industrials and Business Services 8.4 7.7
Consumer Staples 8.2 9.6
Health Care 7.8 9.6
The Top 5 Sectors table reflects the portfolio's allocation to various sectors
during the same period. Since the portfolio mirrors the composition of the
benchmark, financials, consumer discretionary, industrials and business
services, consumer staples, and health care stocks represented the five largest
areas of investment. Necessary adjustments were made over the past 12 months to
match changes in the index.
The Geographic Diversification table shows the fund's geographic profile as of
October 31, 2003. In accordance with the benchmark's focus on established
larger-cap companies in major international markets, our highest regional
exposure was to European markets and Japan, where most of these companies are
located. The index, and therefore the portfolio, normally invests only a small
portion of its assets in Asian markets outside Japan and other developing
regions. Please see the Statement of Net Assets section following this letter
for a breakdown by individual country.
[Graphic Omitted]
Geographic Diversification
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Other 2%
Japan 22%
Europe 67%
Pacific Rim 9%
Based on net assets as of 10/31/03.
Finally, I'm sure you are aware that mutual fund companies have recently come
under scrutiny for their trading policies. The investigations have led to
allegations that executives of several mutual fund companies permitted or
engaged in improper mutual fund trading. In addition, certain intermediaries
that process fund transactions are alleged to have assisted some investors in
executing improper mutual fund trades. I want T. Rowe Price shareholders to know
that we emphatically condemn the abuses that have been revealed or alleged
against other firms in our industry. Our firm has not entered and will not enter
into any agreements with any investors or intermediaries that authorize
after-hours trading or excessive short-term trading in any of our funds. T. Rowe
Price investors can be assured that our firm unequivocally opposes illegal or
inappropriate trading of any nature and has policies and procedures in place
designed to protect the best interests of our long-term shareholders. No T. Rowe
Price executives or portfolio managers or investment personnel of the T. Rowe
Price mutual funds have engaged in any inappropriate trading of T. Rowe Price
mutual funds. You may find out more about our trading policies and the steps we
take to protect your interests by visiting our Web site (www.troweprice.com).
These policies are also spelled out in your fund's prospectus.
We thank you for your continued support.
Respectfully submitted,
James S. Riepe
Chairman
November 21, 2003
T. Rowe Price International Equity Index Fund
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Certified Annual Report
Financial Highlights For a share outstanding throughout each period
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Year 11/30/00
Ended Through
10/31/03 10/31/02 10/31/01
NET ASSET VALUE
Beginning of period $ 6.68 $ 7.78 $ 10.00
Investment activities
Net investment income (loss) 0.13 0.09 0.10
Net realized and unrealized
gain (loss) 1.67 (1.12) (2.32)
Total from investment
activities 1.80 (1.03) (2.22)
Distributions
Net investment income (0.10) (0.07) --
NET ASSET VALUE
End of period $ 8.38 $ 6.68 $ 7.78
----------------------------------------------
Ratios/Supplemental Data
Total return^ 27.37% (13.38)% (22.20)%
Ratio of total
expenses to average
net assets 0.50% 0.50% 0.50%!
Ratio of net
investment income
(loss) to average
net assets 2.09% 1.59% 1.51%!
Portfolio
turnover rate 39.4% 49.0% 63.1%!
Net assets,
end of period
(in thousands) $ 20,622 $ 12,031 $ 7,502
^ 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.
T. Rowe Price International Equity Index Fund
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Certified Annual Report October 31, 2003
Statement of Net Assets (ss.) Shares Value
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In thousands
EUROPE/FAR EAST 1.6%
Common Stocks 1.6%
iShares MSCI EAFE (USD) 2,600 $ 324
Total Europe/Far East (Cost $325) 324
FOREIGN/EUROPE 0.7%
Common Stocks 0.7%
iShares MSCI EMU (USD) 2,900 157
Total Foreign/Europe (Cost $155) 157
AUSTRALIA 5.1%
Common Stocks 4.9%
Adelaide Bank 211 1
Adelaide Brighton 521 0
Alinta 302 1
Alumina 2,613 11
Amcor 2,761 17
AMP 3,985 19
AMP, Rights, 12/9/03 * 3,985 0
Ansell Limited 518 2
APN News & Media 315 1
Aristocrat Leisure 1,096 2
Austereo Group 505 0
Australand Holdings 629 1
Australia & New Zealand Banking 4,061 51
Australia & New Zealand Banking,
Rights, 11/24/03 * 638 2
Australian Foundation Investment 3,248 8
Australian Gas Light 1,085 8
Australian Pharmaceutical Industries 407 1
Australian Stock Exchange 248 3
AWB 656 2
AXA Asia Pacific 3,304 7
Bendigo Bank 292 2
BHP Billiton 10,093 84
BHP Steel 1,846 7
Billabong International 360 2
Boral 1,319 $ 5
Brambles Industries 3,279 11
Brickworks 237 1
Burns, Philip & Company * 4,265 2
Caltex Australia 324 1
Centro Properties Group, REIT 1,347 4
CFS Gandel Retail Trust 2,722 2
Coca Cola Amatil 1,282 5
Cochlear Limited 130 3
Coles Myer 3,075 17
Commonwealth Bank of Australia 3,217 63
Computershare 1,158 3
Corporate Express Australia 228 1
CSL 452 5
CSR 2,259 3
Downer EDI 1,731 1
Envestra 1,305 1
Flight Centre 167 3
Foodland Associated 646 9
Foster's Group 5,233 17
Futuris 1,569 2
General Property Trust 4,766 9
Gunns 195 2
GWA International 667 1
Harvey Norman 2,608 6
Hills Motorway Group 443 2
Iluka Resources 547 2
Insurance Australia Group 4,451 14
iShares MSCI Australia (USD) 2,400 30
James Hardie Industries 470 2
John Fairfax 671 2
Jupiters Limited 483 2
Leighton Holdings 325 3
Lend Lease 773 6
Lion Nathan 914 4
Macquarie Airports 905 1
Macquarie Bank 526 13
Macquarie Infrastructure Group 4,796 $ 11
Mayne Group 3,154 8
Metcash Trading 604 1
Mirvac 1,753 5
National Australia Bank 3,964 86
National Foods 1,643 5
Newcrest Mining 980 8
News Corporation 4,017 36
Nufarm 373 1
OneSteel 1,304 2
Orica 1,359 13
Origin Energy 2,350 7
Pacifica Group 329 1
Paperlinx 1,249 4
Patrick Corporation 376 4
Perpetual Trust Australia 90 2
Publishing & Broadcasting 326 3
Qantas Airways 2,226 6
QBE Insurance 1,638 12
Rinker Group 2,259 10
Rio Tinto 986 25
Rural Press 140 1
Santos 4,060 17
Seven Network 80 0
Sigma Company 337 2
Simsmetal Group 220 2
Smorgon Steel Group 2,081 2
Sonic Healthcare 622 3
Southcorp 2,581 6
Southern Cross Broadcasting 139 1
Spotless Group 493 2
St. George Bank 1,316 19
Stockland 2,896 10
Suncorp Metway 1,544 14
TAB 1,080 3
Tabcorp 989 8
Telstra 6,131 21
Ten Network Holdings 923 $ 2
Toll Holdings 738 4
Transurban 1,098 3
UNiTAB 317 2
Washington H. Soul Pattinson & Company 503 2
Wesfarmers 931 19
West Australian Newspapers 151 1
Westfield Holdings 1,407 14
Westfield Trust 6,602 16
Westpac Banking 4,502 51
WMC Resources * 2,928 11
Woodside Petroleum 937 9
Woolworths 2,194 17
1,002
Preferred Stocks 0.2%
News Corporation 6,315 46
Rural Press 297 2
48
Total Australia (Cost $827) 1,050
AUSTRIA 0.2%
Common Stocks 0.2%
Erste Bank 138 15
EVN 7 0
Immofinanz Immobilien Anlagen * 887 7
OMV 41 5
Sparkassen Immobilien 40 0
Telekom Austria * 522 6
Wienerberger 205 4
Total Austria (Cost $24) 37
BELGIUM 1.1%
Common Stocks 1.1%
Agfa Gevaert 485 12
Almanij 215 10
CNP 17 2
Colruyt 32 3
Delhaize Group 175 $ 8
Dexia 2,256 36
Electrabel 107 30
Fortis 1,889 34
Fortis (Unified shares) 1,877 33
Groupe Bruxelles Lambert 141 7
Interbrew 507 12
KBC Bank 245 10
Mobistar * 120 6
Solvay 99 7
UCB 299 9
Umicore 17 1
Total Belgium (Cost $213) 220
BERMUDA 0.1%
Common Stocks 0.1%
Asia Satellite Telecommunications (HKD) 500 1
CNPC Hong Kong (HKD) 10,000 1
COFCO International (HKD) 2,000 1
Hutchison Harbour Ring (HKD) 6,000 1
Kowloon Motor Bus Holdings (HKD) 800 4
Mandarin Oriental International (USD) * 6,000 3
Shenzhen International, REIT (HKD) * 22,500 1
Smartone Telecommunications (HKD) 1,000 2
Texwinca Holdings (HKD) 2,000 1
TPV Technology (HKD) 2,000 1
Yue Yuen Industrial (HKD) 5,000 14
Total Bermuda (Cost $22) 30
CAYMAN ISLAND 0.0%
Common Stocks 0.0%
ASM Pacific Technology (HKD) 1,500 6
Chaoda Modern Agriculture (HKD) * 2,000 1
TCL International Holdings (HKD) 4,000 1
Tingyi Holding (HKD) 6,000 1
Total Cayman Island (Cost $8) 9
DENMARK 0.7%
Common Stocks 0.7%
A P Moller-Maersk, Series B 2 $ 16
Carlsberg, Series B 54 2
Coloplast 58 5
Danisco 176 7
Danske Bank 1,918 39
Group 4 Falck 120 3
H. Lundbeck 328 6
ISS 92 4
Jyske * 168 8
Novo Nordisk 630 22
Novozymes, Series B 195 6
TDC A/S 395 13
Vestas Wind Systems 186 4
William Demant * 84 3
Total Denmark (Cost $124) 138
FINLAND 1.4%
Common Stocks 1.4%
Fortum 1,610 15
Kone 97 5
Metso 322 3
Nokia 11,811 200
Sampo, Series A 1,404 12
Stora Enso 1,817 25
TietoEnator 212 6
UPM- Kymmene 1,205 22
Total Finland (Cost $361) 288
FRANCE 9.1%
Common Stocks 9.1%
Accor 522 21
Air France 451 7
Alcatel * 3,253 43
Assurances Generales de France 187 10
Autoroutes du Sud de la France 166 $ 5
Aventis 1,934 102
AXA 4,714 89
BNP Paribas 2,346 123
Bouygues 699 19
Canal Plus 69 0
Cap Gemini * 347 17
Carrefour 1,904 100
Casino Guichard-Perrachon 51 5
Christian Dior 200 11
Ciments Francais 27 2
CNP Assurances 99 5
Compagnie de Saint-Gobain 892 38
Credit Agricole 2,599 55
Credit Agricole, Rights, 11/7/03 * 2,599 1
Dassault Systemes 161 7
Essilor International 281 14
Eurazeo 50 3
France Telecom * 3,191 77
Gecina 40 5
Groupe Danone 368 55
Imerys 19 4
JC Decaux * 159 2
Klepierre 43 2
L'Air Liquide 265 39
L'Oreal 959 71
Lafarge 442 32
Lagardere S.C.A. 354 18
LVMH 922 64
Michelin 274 11
Natexis Banques Populaires 22 2
Pechiney 217 12
Pernod-Ricard 178 17
Peugeot 501 21
Pinault Printemps Redoute 210 21
Publicis 385 12
Renault 581 38
Rexel 44 2
Sagem 33 $ 3
Sanofi-Synthelabo 1,015 63
Schneider Electric 569 33
Societe BIC 99 4
Societe Generale 1,153 86
Societe Television Francaise 1 392 12
Sodexho Alliance 283 7
STMicroelectronics 1,819 48
Suez 2,624 42
Thales 269 8
Thomson 638 13
Total, Series B 1,686 262
Unibail 121 10
Valeo 137 5
Veolia Environnement 891 20
Vinci 220 16
Vivendi Universal * 2,766 58
Wanadoo * 1,073 8
Total France (Cost $1,919) 1,880
GERMANY 6.5%
Common Stocks 6.4%
Adidas-Salomon 121 11
Allianz 765 82
Altana 191 12
AMB 39 2
BASF 1,602 73
Bayer 1,946 47
Bayerische Hypo-und Vereinsbank 813 18
Beiersdorf, Series A 106 12
BMW 863 34
Celesio 98 4
Commerzbank 849 17
Continental 370 13
DaimlerChrysler 2,643 98
Degussa 69 2
Deutsche Bank 1,590 105
Deutsche Boerse 268 15
Deutsche Lufthansa 595 $ 9
Deutsche Post 1,085 21
Deutsche Telekom * 8,326 131
E.On 1,830 92
Fresenius Medical Care 95 5
Hannover Reckversicherungs 70 2
Heidelberger Druckmaschinen * 92 3
Heidelberger Zement 114 5
Henkel 160 11
HVB Group 84 2
Hypo Real Estate, (Spin Off Shares) * 263 5
Hypo Real Estate * 21 0
Infineon Technologies * 1,428 21
Karstadt 179 4
Linde 245 11
MAN 309 9
METRO 412 17
MLP * 352 7
Munich Re, Rights, 11/10/03 * 312 3
Munich Re 350 42
RWE 1,054 29
SAP 631 92
Schering 447 21
Siemens 2,373 160
Suedzucker 126 2
T-Online International * 587 8
ThyssenKrupp 983 16
TUI 367 6
Volkswagen 627 32
1,311
Preferred Stocks 0.1%
Fresenius Medical Care 47 2
Henkel (Non-voting shares) 153 11
Porsche 23 12
25
Total Germany (Cost $1,368) 1,336
GREECE 0.4%
Common Stocks 0.4%
Alpha Bank 477 $ 11
Alpha Investment * 1 0
Altec Information & Communications Systems * 4 0
Athens Water Supply & Sewage 4 0
Attica Enterprises 4 0
Bank of Piraeus 132 1
Coca-Cola Hellenic Bottling 239 5
Commercial Bank of Greece 127 3
Cosmote 300 3
Delta 3 0
EFG Eurobank Ergasias 597 10
ETBA 2 0
Greek Organization of Football Prognostics 400 5
Hellenic Petroleum 322 2
Hellenic Telecommunications Organization 983 11
Iaso 4 0
Intracom 4 0
National Bank of Greece 607 13
Pouliades Associates 1 0
Public Power 400 9
Tiletipos 1 0
Titan Cement 30 1
Unisystems 3 0
Vodafone Panafon 541 4
Total Greece (Cost $74) 78
HONG KONG 2.6%
Common Stocks 2.6%
Bank of East Asia 2,400 7
BOC Hong Kong 8,000 14
Brilliance China Automotive 6,000 3
Cathay Pacific Airways 4,000 8
Cheung Kong Holdings 7,000 58
Cheung Kong Infrastructure Holdings 2,000 4
China Everbright 2,000 $ 1
China Insurance 2,000 1
China Merchants Holdings 2,000 3
China Mobile (Hong Kong) 16,000 45
China National Aviation 4,000 1
China Overseas Land 2,000 0
China Resources Cement * 400 0
China Resources Enterprise 4,000 5
China Travel International Investment 6,000 1
China Unicom 6,000 6
CITIC International Financial 4,000 2
Citic Pacific 2,000 5
CLP 4,700 21
CNOOC 10,000 19
Cosco Pacific 4,000 5
Dah Sing Financial 400 3
Dairy Farm International (USD) 4,500 6
Denway Motors 6,000 5
Esprit Holdings 1,500 5
First Pacific * 6,000 1
Fountain Set Holdings 2,000 1
Giordano International 4,000 2
Global Bio-chem Technology 4,000 2
Guangdong Investment * 4,000 1
Hang Lung Development 1,000 1
Hang Lung Properties 3,000 4
Hang Seng Bank 1,800 22
Henderson Investor 2,000 2
Henderson Land Development 1,000 4
Hong Kong & China Gas 11,930 16
Hong Kong & Shanghai Hotels 5,000 3
Hong Kong Aircraft Engineering 400 2
Hong Kong Electric 3,000 12
Hong Kong Exchanges & Clearing 2,000 4
Hong Kong Land (USD) 5,000 8
Hopewell Holdings 2,000 3
Hung Hing Printing Group 2,000 2
Hutchison Whampoa 8,000 62
Hysan Development 1,000 1
i-Cable Communication 2,200 $ 1
Industrial & Commercial Bank of China 1,000 1
Interchina Holdings * 10,000 1
iShares MSCI Hong Kong (USD) 2,000 20
Jardine Matheson (USD) 800 6
Johnson Electric 4,500 6
Kerry Properties 1,500 2
Kingboard Chemical Holdings 2,000 3
Legend 16,000 8
Li & Fung 6,000 10
MTR 4,500 6
New World Development 2,000 1
Oriental Press Group 2,000 1
PCCW Limited * 9,200 7
SCMP Group 6,000 3
Shanghai Industrial Holdings 2,000 4
Shangri-La Asia 2,000 2
Shenzhen Investment, REIT 2,000 0
Shun Tak Holdings 4,000 1
Sino Land 4,000 2
Sun Hung Kai Properties 4,000 34
Swire Pacific, Series A 1,500 9
Swire Pacific, Series B 5,000 5
Techtronic Industries 2,000 6
Wharf 2,000 5
Wheelock 1,000 1
Wing Hang Bank 500 3
Wing Lung Bank 300 2
Total Hong Kong (Cost $515) 531
IRELAND 0.6%
Common Stocks 0.6%
Allied Irish Banks 2,095 31
Anglo Irish Bank 867 10
Bank of Ireland 2,027 25
Bank of Ireland 401 5
CRH 1,224 22
CRH (Dublin listing) 215 4
DEPFA Bank 23 $ 3
Irish Life & Permanent 1,007 14
Kerry 703 12
Ryanair * 726 6
Total Ireland (Cost $109) 132
ITALY 3.9%
Common Stocks 3.9%
AEM 1,720 3
Alleanza Assicurazioni 1,181 12
Assicurazioni Generali 3,372 78
Autogrill * 305 4
Banca Antonveneta 558 10
Banca Carige 1,053 3
Banca Fideuram 1,290 8
Banca Intesa 11,735 40
Banca Lombarda 776 9
Banca Monte dei Paschi di Siena 2,965 9
Banca Popolare di Lodi 577 6
Banche Poplari Unite * 650 10
Banco Popolare di Verona e Novara 927 14
Benetton 254 3
BNL 3,193 7
Bulgari 228 2
Capitalia * 4,217 12
Edison * 3,587 6
Enel 6,642 41
ENI 7,915 126
Fiat * 1,589 12
Fineco * 3,285 2
Finmeccanica 21,354 15
Fondiaria-Sai 239 4
Gruppo Editoriale L'Espresso 521 3
Ifil (Ordinary shares) * 365 1
Italcementi 187 2
Italcementi-RNC 253 2
Luxottica Group 443 7
Mediaset 1,573 16
Mediobanca 1,291 $ 13
Mediolanum 709 5
Parmalat Finanz 1,126 4
Pirelli 5,888 5
RAS 852 13
RCS MediaGroup * 1,491 5
Saipem 1,497 11
San Paolo IMI 2,535 28
Seat Pagine Gialle * 10,442 10
Snam Rete Gas 2,197 8
Telecom Italia * 31,027 81
Telecom Italia Media * 7,293 3
Telecom Italia Mobile 11,820 54
Telecom Italia-RNC * 16,411 28
UniCredito Italiano 12,375 61
Total Italy (Cost $813) 796
JAPAN 22.3%
Common Stocks 22.3%
77 Bank 1,000 5
ACOM 400 18
Advantest 100 7
AEON 600 20
AEON Credit Service 100 5
AIFUL 50 3
Aioi Insurance 2,000 7
Aisin Seiki 1,000 14
Ajinomoto 3,000 30
All Nippon Airways * 6,000 15
Asahi Breweries 2,000 17
Asahi Glass 3,000 24
Asahi Kasei 2,000 10
Asatsu-DK 100 2
Ashikaga Financial Group * 7,000 7
Bandai 100 2
Bandai (Bonus shares) * 100 3
Bank of Fukuoka 1,000 4
Bank of Kyoto 1,000 5
Bank of Yokohama 1,000 $ 4
Benesse 300 7
Bridgestone 1,000 13
Brother Industries 1,000 9
C&S 100 2
Canon 2,000 97
Central Japan Railway 2 17
Chiba Bank 2,000 9
Chubu Electric 1,500 30
Chugai Pharmaceutical 1,900 27
Chugoku Electric Power 800 13
Citizen Watch 1,000 8
Coca-Cola West Japan 100 2
Credit Saison 300 6
CSK 100 4
Dai Nippon Printing 2,000 31
Daido Life Insurance * 4 12
Daido Steel 1,000 2
Daihatsu Motor 1,000 4
Daimaru 1,000 6
Dainippon Ink & Chemicals 9,000 18
Daishi Bank 1,000 4
Daito Trust Construction 600 19
Daiwa House Industry 1,000 11
Daiwa Securities 3,000 22
Denki Kagaku Kogyo Kabushiki Kaisha 1,000 3
Denso 1,400 27
Dentsu 2 9
Dowa Mining 1,000 5
East Japan Railway 8 36
Eisai 400 9
FamilyMart 200 4
Fanuc 400 24
Fast Retailing 200 12
Fuji Electric 5,000 12
Fuji Heavy Industries 2,000 9
Fuji Photo Film 1,000 29
Fujikura 1,000 6
Fujisawa Pharmaceutical 1,000 21
Fujitsu 3,000 $ 19
Furukawa Electric 1,000 4
Futaba 100 3
Gunma Bank 1,000 4
Hachijuni Bank 1,000 5
Hamamatsu Photonics 100 2
Hankyu * 2,000 6
Hanshin Electric Railway 1,000 3
Heiwa 700 10
Hiroshima Bank 1,000 3
Hitachi 11,000 65
Hitachi Capital 100 1
Hitachi Chemical 300 5
Hokkaido Electric Power 500 8
Hokkoku Bank 1,000 5
Hokugin Financial Group * 15,000 24
Hokuriku Electric Power 500 8
Honda 1,700 67
Hoya 300 27
Hyakujushi Bank 1,000 7
Ibiden 200 3
iShares MSCI Japan (USD) * 14,700 136
Ishikawajima Harima Heavy Industries 6,000 8
Isuzu Motors * 1,000 2
Ito 100 4
Ito-Yokado 1,000 37
ITOCHU 100 3
Itochu 2,000 7
Iyo Bank 1,000 6
Japan Airlines System 1,000 3
Japan Telecom Holdings 2 6
Japan Tobacco 2 13
JFE Holdings 900 23
Joyo Bank 1,000 3
Juroku Bank 1,000 5
Kajima 6,000 22
Kamigumi 1,000 7
Kanebo * 1,000 1
Kansai Electric Power 1,900 33
Kansai Paint 1,000 $ 4
Kao 2,000 41
Katokichi 100 2
Kawasaki Heavy Industries 6,000 8
Kawasaki Kisen Kaisha 5,000 20
KDDI 7 38
Keihin Electric Express Railway 1,000 6
Keio Electric Railway 1,000 5
Keyence 100 22
Kinki Nippon Railways * 3,000 9
Kirin Brewery 2,000 16
Kobe Steel * 4,000 5
Koei Co 1,000 34
Komatsu 2,000 11
Komeri 100 2
Konami 200 6
Konica Minolta Holdings 2,000 26
Kubota 2,000 7
Kuraray 1,000 8
Kuraya Sanseido 300 2
Kyocera 400 24
Kyowa Hakko Kogyo 1,000 6
Kyushu Electric Power 1,000 17
Lawson 200 8
Makita 1,000 10
Marubeni 6,000 11
Marui 2,000 25
Matsushita Electric Industrial 6,000 79
Matsushita Electric Works 2,000 15
Mazda Motor 2,000 5
Meitec 100 4
Millea 3 36
Mitsubishi 3,000 31
Mitsubishi Chemical 4,000 10
Mitsubishi Electric 5,000 22
Mitsubishi Estate 3,000 29
Mitsubishi Heavy Industries 9,000 25
Mitsubishi Materials * 2,000 3
Mitsubishi Securities 1,000 11
Mitsubishi Tokyo Financial 10 $ 72
Mitsui 4,000 29
Mitsui Chemical 1,000 6
Mitsui Engineering & Shipbuilding 3,000 5
Mitsui Fudosan 2,000 19
Mitsui Mining & Smelting 1,000 4
Mitsui O.S.K. Lines 2,000 8
Mitsui Sumitomo Insurance 3,000 25
Mitsui Trust Holdings * 2,000 11
Mitsukoshi * 1,000 4
Mitsumi Electric 400 4
Mizuho Financial Group * 18 44
Mizuho Investors Securities * 2,000 5
Mizuho Trust & Banking * 14,000 24
Murata Manufacturing 600 34
Musashino Bank 100 4
Nagoya Railroad * 1,000 3
NEC 3,000 26
Net One Systems 1 8
Nichicon 200 2
Nidec 100 10
Nikko Cordial 3,000 16
Nikon * 1,000 15
Nintendo 200 15
Nippon Express 2,000 9
Nippon Mining Holdings 3,500 13
Nippon Oil 2,000 10
Nippon Sheet Glass 1,000 3
Nippon Steel 18,000 37
Nippon Telegraph & Telephone 15 67
Nippon Unipac 2 9
Nippon Yusen 2,000 9
Nipponkoa Insurance 1,000 5
Nishi-Nippon Bank 1,000 2
Nishi-Nippon Railroad 1,000 3
Nissan Motor 5,000 56
Nisshin Steel 2,000 4
Nissin Food Products 400 9
Nitori 50 3
Nitto Denko 400 $ 21
Nomura Research Institute 100 10
Nomura Holdings 5,000 86
NTT Data 5 22
NTT DoCoMo 51 110
Obayashi 1,000 5
Odakyu Electric Railway 2,000 9
Ogaki Kyoritsu Bank 1,000 6
Oji Paper 4,000 21
Oki Electric Industry * 3,000 13
Omron 1,000 22
Oracle Japan 100 6
Oriental Land 300 16
Orix 200 17
Osaka Gas 4,000 11
Pioneer 300 7
Promise 100 5
Q.P. Corporation 300 2
Resona Holdings * 12,000 18
Ricoh 2,000 38
Rinnai 100 2
Rohm 300 40
Sagami Railway * 1,000 3
Sammy Corporation 100 3
Sankyo 1,000 16
Sankyo * 100 3
Sanyo Electric 3,000 14
Sapporo Breweries 1,000 3
Secom 500 20
Sega * 400 4
Seibu Railway 1,000 13
Seiko Epson 400 14
Seiyu * 1,000 3
Sekisui House 1,000 10
Seven-Eleven Japan 1,000 32
SFCG 30 4
Sharp 2,000 31
Shikoku Bank 1,000 6
Shikoku Electric Power 500 8
Shima Seiki Manufacturing 100 $ 4
Shimachu 100 2
Shimano 1,500 29
Shimizu 1,000 4
Shin-Etsu Chemical 1,800 67
Shionogi & Co. 1,000 17
Shiseido 1,000 11
Shizuoka Bank 1,000 7
Showa Denko * 5,000 10
SMC 100 12
Softbank 600 31
Softbank Investment * 1 3
Sohgo Security Services 100 1
Sompo Japan Insurance 1,000 8
Sony 2,300 80
Square Enix 100 3
Sumisho Computer Systems 100 3
Sumitomo 2,000 14
Sumitomo Chemicals 3,000 11
Sumitomo Electric Industries 1,000 9
Sumitomo Metal Industries 8,000 7
Sumitomo Metal Mining 1,000 7
Sumitomo Mitsui Financial 10 50
Sumitomo Osaka Cement 3,000 6
Sumitomo Realty & Development 1,000 9
Sumitomo Trust & Banking 3,000 17
Suzuken 100 3
Suzuki Motor 2,000 29
Taiheiyo Cement 5,000 12
Taisei 1,000 3
Taisho Pharmaceutical 1,000 17
Taiyo Life Insurance * 4 6
Takara Holdings 1,000 8
Takeda Chemical Industries 1,700 60
Takefuji 160 9
TDK 200 13
Teijin 1,000 3
Terumo 700 13
THK 300 6
Tobu Railway 1,000 $ 4
Toho 600 7
Toho Gas 1,000 3
Tohoku Electric Power 1,000 16
Tokyo Electric Power 2,400 51
Tokyo Electron 300 21
Tokyo Gas 5,000 17
Tokyu 2,000 10
Tonen General Sekiyu 1,000 8
Toppan Forms 100 1
Toppan Printing 3,000 27
Toray Industries 2,000 8
Toshiba 8,000 32
Tosoh 1,000 3
Tostem Inax Holding 1,000 18
Toto 1,000 8
Toyo Seikan Kaisha 1,000 12
Toyobo 3,000 6
Toyoda Gosei 1,100 32
Toyota Industries 500 9
Toyota Motor 7,200 205
TV Asahi 1 2
Ube Industries 3,000 6
UFJ Holdings * 11 47
UFJ Tsubasa Securities 1,000 5
Uni-Charm 100 5
USS 50 4
West Japan Railway 3 11
World Company 100 3
Yahoo Japan * 2 30
Yamada Denki 200 6
Yamanouchi Pharmaceutical 1,000 25
Yamato Transport 1,000 13
YASKAWA Electric * 1,000 7
Yoshinoya D&C 1 2
Total Japan (Cost $4,456) 4,596
LUXEMBOURG 0.1%
Common Stocks 0.1%
Arcelor 972 $ 14
RTL Group 130 7
SES Global (1 FDR Represents 1 A share) 594 5
Total Luxembourg (Cost $24) 26
NETHERLANDS 4.7%
Common Stocks 4.7%
ABN Amro Holdings 4,271 90
Aegon 3,970 52
Akzo Nobel 759 24
ASML Holding * 1,443 25
DSM 172 8
Euronext 293 7
European Aeronautic Defense & Space 947 19
Gucci Group 85 7
Heineken Holding, Series A 263 8
Heineken 565 20
ING Groep 5,201 108
Koninklijke Numico * 457 10
Philips Electronics 3,509 95
Reed Elsevier 2,002 22
Rodamco Europe, REIT 199 10
Royal Ahold * 2,462 21
Royal Dutch Petroleum 5,554 246
Royal KPN * 6,863 52
TPG 990 22
Unilever 1,513 88
VNU 661 20
Wolters Kluwer 772 11
Total Netherlands (Cost $1,092) 965
NEW GUINEA 0.0%
Common Stocks 0.0%
Oil Search (AUD) 2,678 2
Total New Guinea (Cost $2) 2
NEW ZEALAND 0.3%
Common Stocks 0.3%
Air New Zealand * 1,979 $ 1
Auckland International Airport 120 1
Briscoe Group 95 0
Carter Holt Harvey 5,039 6
Contact Energy 764 2
Fisher & Paykel Appliances 34 0
Fisher & Paykel Healthcare 197 1
Fletcher Building 1,065 3
Independent Newspapers 137 0
Infratil Limited 464 1
Kiwi Income Property Trust 4,590 3
NGC Holdings 1,081 1
Port of Tauranga 94 0
Ports of Auckland 30 0
Sanford 434 1
Sky City 1,027 6
Sky Network Television * 136 0
Telecom Corp. of New Zealand 5,954 18
Tower * 950 1
Warehouse Group 1,391 5
Westpac Trust Investments 74 1
51
Preferred Stocks 0.0%
Fletcher Challenge Forests * 1,754 1
1
Total New Zealand (Cost $40) 52
NORWAY 0.4%
Common Stocks 0.4%
DnB Holding 884 5
Gjensidige NOR ASA 161 7
Norsk Hydro 462 26
Norske Skogsindustrier 432 8
Orkla, Series A 529 11
Statoil ASA 1,324 12
Storebrand ASA * 673 $ 4
Telenor 1,925 11
Total Norway (Cost $67) 84
PORTUGAL 0.4%
Common Stocks 0.4%
Banco BPI 1,512 5
Banco Comercial Portugues 6,296 12
Banco Espirito Santo 253 4
Brisa-Auto Estradas de Portugal 1,289 8
CIMPOR 494 2
Electricidade de Portugal 6,181 14
Portugal Telecom 3,263 27
PT Multimedia-Servicos de Telecomunicacoes
e Multimedia * 255 4
Total Portugal (Cost $76) 76
SINGAPORE 0.8%
Common Stocks 0.8%
Allgreen Properties 1,000 1
BIL International * 9,500 4
CapitaLand 1,000 1
Capitamall Trust 2,000 2
Chartered Semiconductor Manufacturing * 3,000 3
City Developments 3,000 10
ComfortDelGro Corporation 5,012 2
Creative Technology 350 4
Datacraft Asia (USD) * 3,000 4
DBS 2,000 16
Elec & Eltek (USD) 1,400 4
Haw Par 103 0
iShares MSCI Singapore (USD) 700 4
Jardine Strategic (USD) 500 2
Keppel 1,000 3
MobileOne Limited 3,000 2
NatSteel 4,000 5
Neptune Orient Lines * 4,000 5
Overseas Chinese Banking 2,000 14
Pacific Century Regional Developments * 7,000 1
Sembcorp 2,000 $ 2
Sembcorp Logistics 2,000 2
Sembcorp Marine 5,000 3
Singapore Airlines 1,000 7
Singapore Exchange 2,000 2
Singapore Press 1,000 11
Singapore Technologies Engineering 4,000 4
Singapore Telecommunications 12,000 12
Singapore Telecommunications CUFS
(1 CDR represents 1 ordinary share) (AUD) 1,333 1
SMRT Corporation 2,000 1
ST Assembly Test Services * 4,000 5
United Industrial 1,000 0
United Overseas Bank 2,520 20
Venture Manufacturing 1,000 11
Want Want Holdings (USD) 8,000 7
Total Singapore (Cost $162) 175
SPAIN 3.4%
Common Stocks 3.4%
Acciona 78 4
Acerinox 183 8
ACS 137 6
Alba 124 3
Albertis Infraestructuras 856 12
Altadis, Series A 758 18
Amadeus Global Travel Distribution 920 6
Antena 3 Television * 42 1
Banco Bilbao Vizcaya Argentaria 8,403 96
Banco de Sabadell 489 10
Banco Popular Espanol 511 27
Banco Santander Central Hispano 12,549 120
Bankinter 179 7
Cia Espanola de Petroleos 262 8
Endesa 2,863 45
FCC 198 7
Gas Natural 662 13
Grupo Dragados 387 8
Grupo Ferrovial 168 5
Iberdrola 2,204 $ 37
Inditex 807 17
NH Hoteles * 287 3
Repsol 3,172 55
Telefonica 13,375 166
Terra Networks * 1,346 8
Union Electrica Fenosa 635 10
Zardoya Otis 190 3
Total Spain (Cost $638) 703
SWEDEN 2.3%
Common Stocks 2.3%
Assa Abloy 990 10
Atlas Copco, Series A 247 9
Atlas Copco, Series B 177 6
Electrolux, Series B 899 19
Eniro 347 3
ForeningsSparbanken, Series A 1,001 17
Gambro, Series A 621 5
Gambro, Series B 337 2
Hennes & Mauritz, Series B 722 15
Holmen, Series B 189 6
Industrivarden, Series A 382 6
Industrivarden, Series C 107 1
Investor, Series A 628 5
Investor, Series B 971 9
iShares MSCI Sweden (USD) 2,500 35
LM Ericsson, Series B * 39,975 69
NORDEA 7,755 48
Sandvik 696 21
SAS (DKK) * 14 0
Scania, Series B 83 2
SEB, Series A 1,631 20
Securitas, Series B 673 8
Skandia Forsakrings 2,724 10
Skanska 994 7
SKF, Series B 216 8
SKF, Series A 72 2
SSAB Svenskt Stal, Series B 138 2
SSAB Svenskt Stal, Series A 146 $ 2
Svenska Cellulosa 525 20
Svenska Handelsbanken, Series A 1,767 31
Swedish Match 869 7
Tele2 AB, Series B * 247 12
TeliaSonera 2,437 10
TeliaSonera (EUR) 1,303 6
Volvo, Series A 485 13
Volvo, Series B 886 25
Total Sweden (Cost $461) 471
SWITZERLAND 6.7%
Common Stocks 6.7%
ABB * 2,969 17
Adecco 368 22
Baloise 193 8
Ciba Specialty Chemicals * 183 12
Clariant * 316 4
Compagnie Financiere Richemont 1,426 32
Converium Holding 118 6
Credit Suisse Group 3,168 111
Givaudan 22 10
Holcim 328 14
iShares MSCI Switzerland (USD) 2,600 34
Julius Baer 27 9
Lonza Group 139 7
Nestle 1,025 225
Nobel Biocare Holding 90 8
Novartis 7,396 281
Pargesa Holdings 7 16
Roche Holding (Bearer shares) 108 13
Roche Holding (Participation certificates) 1,821 150
Schindler Holding * 7 2
Serono 16 11
Societe Generale de Surveillance 16 9
Swatch (Bearer shares) 81 9
Swatch (Registered shares) 331 7
Swiss Life Holding * 76 13
Swiss Re 852 $ 54
Swisscom 73 21
Syngenta 277 15
UBS 3,319 204
Zurich Financial Services 381 49
1,373
Preferred Stocks 0.0%
Schindler Holding * 5 1
1
Total Switzerland (Cost $1,377) 1,374
UNITED KINGDOM 24.5%
Common Stocks 24.5%
3i Group 1,748 18
Abbey National 3,841 37
Aegis 2,116 4
Alliance & Leicester 1,220 18
Alliance Trust 165 8
Alliance UniChem 738 7
Allied Domecq 2,818 19
Amvescap 2,158 17
Anglo American 3,880 79
Antofagasta 193 3
Associated British Foods 1,175 11
Associated British Ports 797 6
AstraZeneca 4,420 207
Aviva 5,848 48
AWG 538 5
Barclays 17,350 146
BBA 1,118 5
BG Group 9,261 42
BHP Billiton 6,410 50
BOC 1,234 17
Boots Group 1,958 24
BP 58,460 406
BPB 995 6
Bradford & Bingley 1,755 9
Brambles 1,673 5
British Aerospace 8,823 27
British Airport Authorities 2,703 $ 21
British Airways * 1,615 6
British America Tobacco 4,447 54
British Land 1,375 12
British Sky Broadcast * 3,843 42
BT Group 22,930 72
Bunzl 1,478 12
Cable & Wireless 6,670 15
Cadbury Schweppes 5,541 35
Canary Wharf Group 1,433 6
Capita 1,552 7
Carlton Communications 1,470 5
Carnival 483 17
Centrica 10,758 34
Compass 5,403 31
Daily Mail & General Trust 737 7
Diageo 7,985 94
Dixons 4,398 10
Electrocomponents 1,595 9
EMAP 630 9
EMI 1,846 5
Enterprise Inns 413 6
Exel 900 12
Foreign and Colonial Investment Trust 3,089 10
Friends Provident 4,181 10
Gallaher 1,775 18
GKN 2,009 9
GlaxoSmithKline 15,806 338
Granada 7,309 15
GUS 3,181 39
Hammerson 696 7
Hanson 1,859 13
Hays 4,075 8
HBOS 10,145 118
Hilton Group 3,695 12
HSBC 28,510 428
Imperial Chemical 3,032 10
Imperial Tobacco Group 1,999 33
InterContinental Hotels 1,895 17
International Power * 3,241 $ 7
Invesys 8,908 5
iShares MSCI United Kingdom (USD) 9,900 143
J Sainsbury 3,435 17
Jardine Lloyd Thomson Group 368 4
Johnson Matthey 524 9
Kelda Group 960 7
Kesa Electricals * 1,313 5
Kingfisher 5,746 28
Land Securities 1,523 23
Legal & General Group 17,149 30
Liberty International 666 7
Lloyds TSB 14,716 102
Logica 2,100 11
Lonmin 364 6
Man Group 815 20
Marks & Spencer 5,937 29
Matalan 423 2
Misys 1,379 7
Mitchells & Butler * 1,895 7
mm02 * 22,854 25
National Grid Group 8,181 52
Next 681 14
Northern Rock 1,297 16
Nycomed Amersham 2,037 25
Old Mutual 16,286 28
Pearson 2,026 21
Peninsular & Oriental Steam Navigation 2,273 11
Persimmon 683 5
Premier Farnell 1,888 8
Provident Financial 672 7
Prudential 5,295 41
Rank 1,222 6
Reckitt Benckiser 1,691 36
Reed Elsevier (Ordinary shares) 3,210 25
Rentokil Initial 4,792 18
Reuters 3,414 15
Rexam 1,795 13
Rio Tinto 2,814 68
RMC 624 $ 7
Rolls-Royce Group 4,674 15
Royal & Sun Alliance 6,522 10
Royal Bank of Scotland 7,781 208
SABMiller 2,543 21
Safeway 2,517 12
Sage Group 3,116 10
Schroders 475 6
Schroders (Non-Voting Shares) 261 3
Scottish & Newcastle 2,201 13
Scottish & Southern Energy 2,210 23
Scottish Mortgage Investment Trust 831 4
Scottish Power 4,888 29
Severn Trent 879 11
Shell Transport & Trading 25,700 160
Shire Pharmaceuticals * 1,358 10
Signet Group 4,152 7
Slough Estates 1,503 10
Smith & Nephew 2,356 19
Smiths 1,589 19
Standard Chartered 3,064 49
Tate & Lyle 1,338 7
Tesco 18,870 76
TI Automotive * 270 0
Tomkins 2,678 13
Travis Perkins 274 5
Trinity Mirror 708 6
Unilever 7,699 66
United Business Media 1,909 15
United Utilities 1,562 12
United Utilities, A Shares * 798 4
Vodafone 173,545 364
Vodafone ADR (USD) 700 15
WH Smith 663 4
Whitbread 611 8
William Morrison Supermarkets 4,087 16
Witan Investment Trust 1,452 7
Wolseley 1,604 $ 20
WPP Group 2,930 28
Xstrata 1,158 12
Total United Kingdom (Cost $5,032) 5,057
UNITED STATES 0.0%
Common Stocks 0.0%
Synthes-Stratec (CHF) 11 10
Total United States (Cost $10) 10
SHORT-TERM INVESTMENTS 0.3%
Money Market Funds 0.3%
T. Rowe Price Reserve Investment
Fund 1.10% # 65,982 66
Total Short-term Investments (Cost $66) 66
SECURITIES LENDING COLLATERAL 3.6%
Money Market Pooled Account 3.6%
Investment in money market pooled account
managed by JP Morgan Chase Bank, London 744,965 745
Total Securities Lending Collateral (Cost $745) 745
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Value
- --------------------------------------------------------------------------------
In thousands
Total Investments in Securities
103.8% of Net Assets (Cost $21,105) $ 21,408
Other Assets Less Liabilities (786)
NET ASSETS $ 20,622
---------------
Net Assets Consist of:
Undistributed net investment income (loss) $ 294
Undistributed net realized gain (loss) (495)
Net unrealized gain (loss) 305
Paid-in-capital applicable to
2,462,199 shares of $0.01 par
value capital stock outstanding;
1,000,000,000 shares of
the Corporation authorized 20,518
NET ASSETS $ 20,622
---------------
NET ASSET VALUE PER SHARE $ 8.38
---------------
# Seven-day yield
* Non-income producing
(ss.) Denominated in currency of the country of
incorporation unless otherwise noted
ADR American Depository Receipts
AUD Australian dollar
CHF Swiss franc
DKK Danish krone
EUR Euro
FDR Fiduciary Depository Receipts
HKD Hong Kong dollar
REIT Real Estate Investment Trust
USD United States dollar
The accompanying notes are an integral part of these financial statements.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
Year
Ended
10/31/03
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $46) $ 373
Securities lending 6
Total income 379
Investment management and administrative expense 73
Net investment income (loss) 306
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (80)
Foreign currency transactions 1
Net realized gain (loss) (79)
Change in net unrealized gain (loss)
Securities 3,691
Other assets and liabilities
denominated in foreign currencies 1
Change in net unrealized gain (loss) 3,692
Net realized and unrealized gain (loss) 3,613
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 3,919
----------
The accompanying notes are an integral part of these financial statements.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
Year
Ended
10/31/03 10/31/02
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 306 $ 166
Net realized gain (loss) (79) (286)
Change in net unrealized gain (loss) 3,692 (1,672)
Increase (decrease) in net
assets from operations 3,919 (1,792)
Distributions to shareholders
Net investment income (174) (70)
Capital share transactions *
Shares sold 7,951 8,473
Distributions reinvested 133 39
Shares redeemed (3,239) (2,122)
Redemption fees 1 1
Increase (decrease) in net assets
from capital share transactions 4,846 6,391
Net Assets
Increase (decrease) during period 8,591 4,529
Beginning of period 12,031 7,502
End of period $ 20,622 $ 12,031
-------------------------------------
*Share information
Shares sold 1,104 1,113
Distributions reinvested 20 5
Shares redeemed (462) (282)
Increase (decrease) in shares outstanding 662 836
The accompanying notes are an integral part of these financial statements.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
Certified Annual Report October 31, 2003
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Equity Index Fund, Inc. (the fund) is registered
under the Investment Company Act of 1940 (the 1940 Act) as a diversified,
open-end management investment company and commenced operations on November 30,
2000. The fund seeks to provide long-term capital growth, using the FTSE(TM)
International Limited Developed ex North America Index.
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, 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 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 NYSE. Normally, developments that could
affect the values of securities that occur between the close of a foreign market
and the close of the NYSE will not be reflected in security valuations used by
the fund to compute its share price. However, if developments are so significant
that they will, in the judgment of the fund, clearly and materially affect
security values, such valuations may be adjusted to reflect the estimated 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.
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 security gains and losses.
Redemption Fees
A 1% fee is assessed on redemptions of fund shares held less than 6 months. Such
fees are withheld from redemption proceeds and retained by the fund, and have
the primary effect of increasing paid-in capital.
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. Dividends from mutual fund
investments are reflected as dividend income; capital gain distributions from
mutual fund investments are reflected as realized gain/loss. 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 October 31, 2003, the value of loaned
securities was $706,000; aggregate collateral consisted of $745,000 in the money
market pooled account and U.S. government securities valued at $4,000.
Other
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $10,741,000 and $5,776,000, respectively, for the year ended October
31, 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 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 significantly 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.
Distributions during the year ended October 31, 2003 totaled $174,000 and were
characterized as ordinary income for tax purposes. At October 31, 2003, the
tax-basis components of net assets were as follows:
- --------------------------------------------------------------------------------
Unrealized appreciation $ 1,939,000
Unrealized depreciation (1,649,000)
Net unrealized appreciation (depreciation) 290,000
Undistributed ordinary income 309,000
Capital loss carryforwards (495,000)
Paid-in capital 20,518,000
Net assets $ 20,622,000
------------
The fund intends to retain realized gains to the extent of available capital
loss carryforwards for federal income tax purposes. As of October 31, 2003, the
fund had $125,000 of capital loss carryforwards that expire in 2009, $285,000
that expire in 2010, and $85,000 that expire in 2011.
For the year ended October 31, 2003, the fund recorded the following permanent
reclassifications to reflect tax character. Reclassifications to paid-in capital
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. Results of operations and net assets were
not affected by these reclassifications.
- --------------------------------------------------------------------------------
Undistributed net realized gain $ (1,000)
Paid-in capital 1,000
At October 31, 2003, the cost of investments for federal income tax purposes was
$21,120,000.
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.
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 0.50% 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.
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 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. During the year ended October 31, 2003, dividend income from
the Reserve Funds totaled $1,000.
T. Rowe Price International Equity Index Fund
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Certified Annual Report
Report of Independent Auditors
- --------------------------------------------------------------------------------
To the Board of Directors of T. Rowe Price International Index Fund, Inc. and
Shareholders of T. Rowe Price International Equity Index 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
T. Rowe Price International Equity Index Fund (the portfolio comprising T. Rowe
Price International Index Fund, Inc., hereafter referred to as the "Fund") at
October 31, 2003, 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, 2003 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 24, 2003
T. Rowe Price International Equity Index Fund
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Certified Annual Report
Tax Information (Unaudited) for the Tax Year Ended 10/31/03
- --------------------------------------------------------------------------------
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 $1,000 from short-term capital
gains.
For taxable non-corporate shareholders, $356,000 of the fund's income and
short-term capital gains represents qualified dividend income subject to the 15%
rate category.
The fund will pass through foreign source income of $354,000 and foreign taxes
paid of $44,000.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
Certified Annual Report
About the Fund's Directors and Officers
Your fund is governed by a Board of Directors that meets regularly to review
investments, performance, expenses, and other business matters, and is
responsible for protecting the interests of shareholders. The majority of the
fund's directors are independent of T. Rowe Price Associates, Inc. (T. Rowe
Price); "inside" directors are officers of T. Rowe Price. The Board of Directors
elects the fund's officers, who are listed in the final table. The business
address of each director and officer is 100 East Pratt Street, Baltimore, MD
21202. The Statement of Additional Information includes additional information
about the fund directors and is available without charge by calling a T. Rowe
Price representative at 1-800-225-5132.
Independent Directors
Name
(Date of Birth)
Year Elected*
Principal Occupation(s) During Past 5 Years and Directorships
of Other Public Companies
Anthony W. Deering
(1/28/45)
2000
Director, Chairman of the Board, President, and Chief Executive Officer, The
Rouse Company, real estate developers; Director, Mercantile Bank (4/03 to
present)
Donald W. Dick, Jr.
(1/27/43)
2000
Principal, EuroCapital Advisors, LLC, an acquisition and management advisory
firm
David K. Fagin
(4/9/38)
2001
Director, Golden Star Resources Ltd., Canyon Resources Corp. (5/00 to
present), and Pacific Rim Mining Corp. (2/02 to present); Chairman and
President, Nye Corp.
F. Pierce Linaweaver
(8/22/34)
2001
President, F. Pierce Linaweaver & Associates, Inc., consulting environmental
and civil engineers
John G. Schreiber
(10/21/46)
2001
Owner/President, Centaur Capital Partners, Inc., a real estate investment
company; Senior Advisor and Partner, Blackstone Real Estate Advisors, L.P.;
Director, AMLI Residential Properties Trust, Host Marriott Corp., and The
Rouse Company
Hubert D. Vos
(8/2/33)
2001
Owner/President, Stonington Capital Corp., a private investment company
Paul M. Wythes
(6/23/33)
2000
Founding Partner, Sutter Hill Ventures, a venture capital limited partnership,
providing equity capital to young high-technology companies throughout the
United States; Director, Teltone Corp.
*Each independent director oversees 106 T. Rowe Price portfolios and serves
until retirement, resignation, or election of a successor.
Inside Directors
Name
(Date of Birth)
Year Elected*
[Number of T. Rowe Price
Portfolios Overseen]
Principal Occupation(s) During Past 5 Years and Directorships
of Other Public Companies
James S. Riepe
(6/25/43)
2002
[106]
Director and Vice President, T. Rowe Price; Vice Chairman of the Board,
Director, and Vice President, T. Rowe Price Group, Inc.; Chairman of the Board
and Director, T. Rowe Price Global Asset Management Limited, T. Rowe Price
Investment Services, Inc., T. Rowe Price Global Investment Services Limited,
T. Rowe Price Retirement Plan Services, Inc., and T. Rowe Price Services,
Inc.; Chairman of the Board, Director, President, and Trust Officer, T. Rowe
Price Trust Company; Director, T. Rowe Price International, Inc.; Chairman of
the Board, International Index Fund
M. David Testa
(4/22/44)
2000
[106]
Chief Investment Officer, Director, and Vice President, T. Rowe Price; Vice
Chairman of the Board, Chief Investment Officer, Director, and Vice President,
T. Rowe Price Group, Inc.; Director, T. Rowe Price Global Asset Management
Limited and T. Rowe Price Global Investment Services Limited; Chairman of the
Board and Director, T. Rowe Price International, Inc.; Director and Vice
President, T. Rowe Price Trust Company
*Each inside director serves until retirement, resignation, or election of a
successor.
Officers
Name (Date of Birth)
Title and Fund(s) Served
Principal Occupation(s)
Regina M. Aldave (11/19/71)
Vice President, International Index Fund
Assistant Vice President, T. Rowe Price
Mark C.J. Bickford-Smith (4/30/62)
Vice President, International Index Fund
Vice President, T. Rowe Price Group, Inc., and T. Rowe Price International,
Inc.
Stephen V. Booth (6/21/61)
Vice President, International Index Fund
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price
Trust Company
Joseph A. Carrier (12/30/60)
Treasurer, International Index Fund
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price
Investment Services, Inc.
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
Officers (continued)
Name (Date of Birth)
Title and Fund(s) Served
Principal Occupation(s)
Stephanie C. Clancy (12/19/64)
Vice President, International Index Fund
Vice President, T. Rowe Price and T. Rowe Price Group, Inc.
Wendy R. Diffenbaugh (10/2/53)
Assistant Vice President, International Index Fund
Assistant Vice President, T. Rowe Price
Roger L. Fiery III, CPA (2/10/59)
Vice President, International Index Fund
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price
International, Inc.
Henry H. Hopkins (12/23/42)
Vice President, International Index Fund
Director and Vice President, T. Rowe Price Group, Inc., T. Rowe Price
Investment Services, Inc., T. Rowe Price Services, Inc., and T. Rowe Price
Trust Company; Vice President, T. Rowe Price, T. Rowe Price International,
Inc., and T. Rowe Price Retirement Plan Services, Inc.
Patricia B. Lippert (1/12/53)
Secretary, International Index Fund
Assistant Vice President, T. Rowe Price and T. Rowe Price Investment Services,
Inc.
Raymond A. Mills, Ph.D., CFA (12/3/60)
President, International Index Fund
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., and T. Rowe Price
International, Inc.
M. Christine Munoz, CFA (12/2/62)
Vice President, International Index Fund
Vice President, T. Rowe Price
James B.M. Seddon (6/17/64)
Vice President, International Index Fund
Vice President, T. Rowe Price Group, Inc., and T. Rowe Price International,
Inc.
Julie L. Waples (6/12/70)
Vice President, International Index Fund
Vice President, T. Rowe Price
Richard T. Whitney, CFA (5/7/58)
Executive Vice President, International Index Fund
Vice President, T. Rowe Price, T. Rowe Price Group, Inc., T. Rowe Price
International, Inc., and T. Rowe Price Trust Company
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
Item 2. Code of Ethics.
As of the end of the period covered by this report, the registrant had adopted 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. A copy of this code of
ethics is filed as an exhibit to this Form N-CSR. No substantive amendments were
approved or waivers were granted to this code of ethics during the period
covered by this report.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors/Trustees has determined that Mr. David K.
Fagin qualifies as an audit committee financial expert, as defined in Item 3 of
Form N-CSR. Mr. Fagin is considered independent for purposes of Item 3 of Form
N-CSR.
Item 4. Principal Accountant Fees and Services.
Not required at this time.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. [Reserved]
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) 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 10. Exhibits.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is
attached.
(a)(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.
(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 Index Fund, Inc.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date December 19, 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 December 19, 2003
By /s/ Joseph A. Carrier
Joseph A. Carrier
Principal Financial Officer
Date December 19, 2003