Item 1. Report to Shareholders
OCTOBER 31, 2004
INTERNATIONAL EQUITY INDEX FUND
Annual Report
T. ROWE PRICE
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The views and opinions in this report were current as of October 31, 2004. They
are not guarantees of performance or investment results and should not be taken
as investment advice. Investment decisions reflect a variety of factors, and the
managers reserve the right to change their views about individual stocks,
sectors, and the markets at any time. As a result, the views expressed should
not be relied upon as a forecast of the fund's future investment intent. The
report is certified under the Sarbanes-Oxley Act of 2002, which requires mutual
funds and other public companies to affirm that, to the best of their knowledge,
the information in their financial reports is fairly and accurately stated in
all material respects.
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REPORTS ON THE WEB
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T. Rowe Price International Equity Index Fund
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FELLOW SHAREHOLDERS
International stocks rose during the six and 12 months ended October 31, 2004.
Among the developed markets in which the fund invests, Japan was weakest,
posting a loss during the past six months but gaining over the year. European
stocks produced steady returns, bolstered by the strength of the euro versus the
sagging dollar, which enhanced results for U.S. investors.
PERFORMANCE COMPARISON
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Periods Ended 10/31/04 6 Months 12 Months
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International Equity Index Fund 6.23% 17.86%
FTSE Developed ex
North America Index 6.10 19.05
Please see the fund's quarter-end returns following this letter.
The fund returned 6.23% over the six months ended October 31, 2004, versus 6.10%
for its benchmark index. Fund results relative to the benchmark primarily
reflect the fund's operating and management expenses and technical factors as we
approached full replication of the underlying index. The fund seeks to match the
performance of the FTSE Developed ex North America Index, 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
performance reflects no operational costs or management fees). The index's major
markets include the U.K., Japan, and developed countries in Europe and the
Pacific Rim. It is constructed by selecting the countries it covers, sorting the
market in each country by industry groups, and targeting a significant portion
of the stocks in these groups for inclusion. The fund attempts to replicate the
index by investing in the stocks included in the index in proportion to their
weighting.
At the end of October, Europe represented 68.6% of net assets, with Japan and
the Pacific Rim representing the balance. The U.K. was the largest country
allocation at 24%, followed closely by Japan at 21%. Financial stocks were the
largest sector weighting at 27.5% of assets, followed by consumer discretionary
stocks (12.1%), industrials and business services (8.8%), energy (8.0%),
consumer staples and telecommunication services (7.8%), health care (7.5%),
materials (6.7%), information technology (5.7%), utilities (5.1%), and trusts
(3.1%).
MARKET AND PORTFOLIO REVIEW
Non-U.S. stocks fared well over the 12-month period, with a little over half of
the gain occurring in the first six months. The last six months were a bit
subdued in comparison. European markets performed reasonably well. However,
while stock valuations are attractive, economic growth in the region has been
lackluster. European stock market returns were less volatile during the period
compared with other markets, largely because they are less affected by China's
powerful economic growth. Among the markets in the region, Italy, Spain, and
Norway were particularly strong.
MARKET PERFORMANCE
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Six Months Local Local Currency U.S.
Ended 10/31/04 Currency vs. U.S. Dollars Dollars
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France 3.34% 6.11% 9.65%
Germany -0.36 6.11 5.73
Hong Kong 10.22 0.21 10.45
Italy 7.14 6.11 13.69
Japan -7.06 3.92 -3.42
Mexico 15.95 -1.12 14.66
Netherlands -0.37 6.12 5.72
Singapore 8.25 2.17 10.60
Sweden 3.75 7.40 11.43
Switzerland -6.81 7.92 0.57
United Kingdom 4.13 3.32 7.60
Source: RIMES Online, using MSCI indices.
Japan was the only market to register negative results over the past six months,
but the Japanese market was positive during the 12 months ended October 31.
Japan's fortunes were influenced by the progress of its economic recovery and
the transparency of banking sector reforms, but high oil prices had a negative
impact due to the country's heavy manufacturing bias. Stocks here are also
sensitive to developments in China, since exports to that vast market are
essential to Japan's recovery.
Over the year, all major market sectors, with the exception of information
technology, performed well. This positive sector performance was led by energy
and utilities. Information technology's poor performance can be attributed to
losses among semiconductor, IT services, and computer/peripheral companies.
U.S. investors continued to benefit from a strong euro, which rallied sharply
over the past six months. The Japanese yen was marginally stronger over both the
6- and 12-month periods, therefore reducing the impact of the lackluster
Japanese market.
Europe
Spanish stocks did well over the past six months, with Banco Bilbao Vizcaya
Argentaria (BBVA) and Telefonica, which is sensitive to Spain's high GDP growth
rate, both adding value. Altadis contributed to Spain's attractive returns as
well. Other major European holdings, which benefited portfolio returns, include
the U.K.'s GlaxoSmithKline and Vodafone, France's Total and Sanofi-Aventis, and
Switzerland's UBS and Nestle. The German market underperformed the majority of
European markets, but some individual holdings did well, such as Hypo Real
Estate, which sold a large amount of its nonperforming real estate loans,
thereby boosting the overall quality of its loan portfolio. (Please refer to our
detailed list of holdings and the amount each represents of the portfolio.)
GEOGRAPHIC DIVERSIFICATION
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Percent of Percent of
Net Assets Net Assets
Periods Ended 4/30/04 10/31/04
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Europe 66.6% 68.6%
Japan 22.5 20.8
Pacific Rim 8.7 9.3
Europe/Pacific Rim 2.0 1.4
Other and Reserves 0.2 -0.1
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Total 100.0% 100.0%
Japan
Soft economic data in Japan induced a round of profit-taking. Nomura Holdings
greatly detracted from performance over both periods. Sectors leading the
decline included financials, technology, and basic materials. UFJ Holdings
performed poorly after it unexpectedly announced $5 billion worth of bad loans,
inciting fears that reforms in the industry were not as transparent as investors
had hoped. Our largest holdings in Japan had a mixed performance during the
six-month period, with Toyota Motor outperforming while Canon and Mizuho Finance
underperformed. Both stocks posted positive returns over the 12-month period.
Asia ex-Japan and Pacific Rim
Australia was strong, mainly due to the country's bias toward commodities and
basic resources industries and its geographical proximity to Asia. Inflation
picked up across much of the region as commodity prices rose. A position in BHP
Billiton (mining and metals) helped results as second-half profits more than
doubled, thanks to Chinese
demand, which accounted for 9% of sales in the period. Within the region,
stocks from Singapore (Singapore Telecommunications, United Overseas Bank), and
Hong Kong (Hutchison Whampoa, Sun Hung Kai Properties) were also represented in
the portfolio and contributed to its favorable results.
Sectors
Financial stocks were good contributors to performance. Commercial banks led the
way, with BBVA, BNP Paribas, and HSBC among the highest contributors. Banks are
sensitive to interest rates, which affect net interest margin. The relatively
benign outlook for European interest rates, along with the attractive valuations
for financial stocks, has helped boost results in the sector during both the
6- and 12-month periods. Japanese financials, however, struggled recently after
performing well earlier in the year. Nomura Holdings did poorly compared with
other Japanese financials because of falling fixed-income revenue and potential
competition from new entrants in the securities business.
SECTOR DIVERSIFICATION
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Percent of Net Assets
4/30/04 10/31/04
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Financials 26.5 27.5%
Consumer Discretionary 12.1 12.1
Industrials and Business Services 8.1 8.8
Energy 7.3 8.0
Consumer Staples 8.1 7.8
Telecommunication Services 7.4 7.8
Health Care 7.6 7.5
Materials 6.0 6.7
Information Technology 6.3 5.7
Utilities 4.3 5.1
Trusts 6.1 3.1
Other and Reserves 0.2 -0.1
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Total 100.0% 100.0%
Energy stocks were among the best contributors to performance during both the 6-
and 12-month periods as rising oil prices drove share prices higher. The U.K.'s
BP, Shell T&T/Royal Dutch, and French oil giant Total are among our largest
positions in the sector, and all added much value. Additional top performers in
this sector include Italy's ENI, Norway's Norsk Hydro, and the U.K.'s BG Group.
Consumer discretionary stocks were a bright area over both periods, particularly
the auto makers, with strong contributions from Toyota and Honda. The hotel and
leisure industry had a mixed performance, with good returns from Carnival and
Intercontinental Hotels but poor returns from U.K. catering stock Compass, which
issued a profit warning following financial problems at a leading distributor.
Household durables were weak with Philips Electronics of the Netherlands
struggling in the face of a potential glut in LCDs and decelerating growth in
semiconductors. The results from media companies were mixed over the period.
Vivendi Universal posted a favorable contribution to performance, whereas
British Sky Broadcast was weighed down by speculation that its chairman Rupert
Murdoch might pursue growth at the expense of profitability.
Information technology stocks were among the worst performers during the past
year, reflecting a somewhat mundane economic outlook and cyclical weakness in
the semiconductor cycle. In addition, the rise in prices for thin steel sheet
and cobalt hurt electronics makers who could not pass on costs to consumers used
to prices falling over time. Japanese tech company NEC detracted from results
due to its exposure to China. Other holdings that performed poorly over both
periods include France's ST Microelectronics and Japan's Murata Manufacturing,
Rohm, and Sumisho Computer Systems.
INVESTMENT OUTLOOK
Valuation multiples have consolidated since 2000, and quality international
growth companies that have generated respectable results have been unduly
punished. The economic environment going forward should be more supportive for
quality growth stocks if global GDP levels off and earnings growth decelerates
in 2005, as we expect.
Europe is currently the most attractive region in terms of stock valuation as
investors await an upswing in domestic growth. Global interest rates are
expected to rise in 2005, but the environment in Europe is comparatively benign
as growth has been more tempered. The direction and pace of interest rates can
have a significant impact on the prospects for banks and capital market
companies.
Japan should continue to enjoy positive economic growth and is currently
experiencing its first sustained recovery in 15 years. Government deregulation,
accommodative monetary policy, corporate restructuring, a healthier financial
system, and the global (and Chinese) economic cycle have revived the Japanese
economy.
The diversification provided in a passive portfolio of international stocks is a
prudent, low-cost approach for investors seeking exposure to these developed
foreign equities markets.
Respectfully submitted,
Richard T. Whitney
President and chairman of the Investment Advisory Committee
November 19, 2004
The committee chairman has day-to-day responsibility for managing the portfolio
and works with committee members in developing and executing the fund's
investment program.
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RISKS OF INTERNATIONAL INVESTING
Funds that invest overseas generally carry more risk than funds that invest
strictly in U.S. assets. Funds investing in a single country or in a limited
geographic region tend to be riskier than more diversified funds. Risks can
result from varying stages of economic and political development, differing
regulatory environments, trading days, and accounting standards, and higher
transaction costs of non-U.S. markets. Non-U.S. investments are also subject to
currency risk, or a decline in the value of a foreign currency versus the U.S.
dollar, which reduces the dollar value of securities denominated in that
currency.
GLOSSARY
FTSE Developed ex North America Index:
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.
T. Rowe Price International Equity Index Fund
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PORTFOLIO HIGHLIGHTS
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TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
10/31/04
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BP, United Kingdom 2.3%
Shell T&T/Royal Dutch, United Kingdom/Netherlands 2.1
HSBC, United Kingdom 2.0
Vodafone, United Kingdom 1.9
Total, France 1.5
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Novartis, Switzerland 1.5
iShares MSCI EAFE, Europe/Far East 1.4
GlaxoSmithKline, United Kingdom 1.4
Toyota Motor, Japan 1.1
Nestle, Switzerland 1.0
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Royal Bank of Scotland, United Kingdom 1.0
UBS, Switzerland 1.0
Telefonica, Spain 0.9
Sanofi-Aventis, France 0.8
Roche Holding, Switzerland 0.8
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Nokia, Finland 0.8
ENI S.p.A., Italy 0.7
AstraZeneca, United Kingdom 0.7
Siemens, Germany 0.7
BHP Billiton, United Kingdom/Australia 0.7
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Barclays, United Kingdom 0.7
Deutsche Telekom, Germany 0.7
BNP Paribas, France 0.6
ING Groep GDS, Netherlands 0.6
Unilever, United Kingdom/Netherlands 0.6
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Total 27.5%
Note: Table excludes investments in the T. Rowe Price Reserve Investment Fund
and securities lending collateral.
T. Rowe Price International Equity Index Fund
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GROWTH OF $10,000
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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 10/31/04
International Equity Index Fund $10,117
FTSE Developed ex North America Index $10,445
FTSE Developed ex International Equity
North America Index Index Fund
11/00 $10,000 $10,000
04/01 9,565 9,540
10/01 7,831 7,780
04/02 8,263 8,182
10/02 6,843 6,739
04/03 7,009 6,904
10/03 8,774 8,584
04/04 9,845 9,523
10/04 10,445 10,117
AVERAGE ANNUAL COMPOUND TOTAL RETURN
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This table shows how the fund and its benchmarks would have performed if their
actual (or cumulative) returns for the periods shown had been earned at a
constant rate.
Since
Inception
Periods Ended 10/31/04 1 Year 11/30/00
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International Equity Index Fund 17.86% 0.30%
FTSE Developed ex North America Index 19.05 1.12
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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FUND EXPENSE EXAMPLE
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As a mutual fund shareholder, you may incur two types of costs: (1) transaction
costs such as redemption fees or sales loads and (2) ongoing costs, including
management fees, distribution and service (12b-1) fees, and other fund expenses.
The following example is intended to help you understand your ongoing costs (in
dollars) of investing in the fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 invested at the beginning of the most recent six-month period and held
for the entire period.
Actual Expenses
The first line of the following table ("Actual") provides information about
actual account values and actual expenses. You may use the information in this
line, together with your account balance, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the first line under the heading "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information on the second line of the table ("Hypothetical") is based on
hypothetical account values and expenses derived from the fund's actual expense
ratio and an assumed 5% per year rate of return before expenses (not the fund's
actual return). You may compare the ongoing costs of investing in the fund with
other funds by contrasting this 5% hypothetical example and the 5% hypothetical
examples that appear in the shareholder reports of the other funds. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period.
Note:
T. Rowe Price charges an account maintenance fee that is not included in the
accompanying table. The account maintenance fee is charged on a quarterly basis,
usually during the last week of a calendar quarter, and applies to accounts with
balances below $10,000 on the day of the assessment. The fee is charged to
accounts that fall below $10,000 for any reason, including market fluctuations,
redemptions, or exchanges. When an account with less than $10,000 is closed
either through redemption or exchange, the fee is charged and deducted from the
proceeds. The fee applies to IRA accounts, but not to retirement plans directly
registered with T. Rowe Price Services, or accounts maintained by intermediaries
through NSCC(R) Networking. If you are subject to the fee, keep it in mind when
you are estimating the ongoing expenses of investing in the fund and when
comparing the expenses of this fund with other funds.
You should also be aware that the expenses shown in the table highlight only
your ongoing costs and do not reflect any transaction costs, such as redemption
fees or sales loads. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. To the extent a fund charges transaction costs,
however, the total cost of owning that fund is higher.
FUND EXPENSE EXAMPLE (CONTINUED)
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T. ROWE PRICE INTERNATIONAL EQUITY INDEX FUND
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Beginning Ending Expenses Paid
Account Value Account Value During Period*
5/1/04 10/31/04 5/1/04 to 10/31/04
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Actual $ 1,000 $ 1,062.30 $ 2.59
Hypothetical (assumes 5%
return before expenses) $ 1,000 $ 1,022.62 $ 2.54
*Expenses are equal to the fund's annualized expense ratio for the six-month
period (0.50%), multiplied by the average account value over the period,
multiplied by the number derived by dividing the number of days in the most
recent fiscal half year (184) by the days in the year (366) to reflect the
half-year period.
QUARTER-END RETURNS
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Since
Inception
Periods Ended 9/30/04 1 Year 11/30/00
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International Equity Index Fund 20.91% -0.57%
FTSE Developed ex North America Index 22.43 0.27
Current performance may be higher or lower than the quoted past performance,
which cannot guarantee future results. Share price, principal value, and return
will vary, and you may have a gain or loss when you sell your shares. For the
most recent month-end performance information, please visit our Web site
(troweprice.com) or contact a T. Rowe Price representative at 1-800-225-5132.
This table provides returns through the most recent calendar quarter-end rather
than through the end of the fund's fiscal period. It shows how the fund would
have performed each year if its actual (or cumulative) returns for the periods
shown had been earned at a constant rate. Average annual total return figures
include changes in principal value, reinvested dividends, and capital gain
distributions. Returns do not reflect taxes that the shareholder may pay on fund
distributions or the redemption of fund shares. When assessing performance,
investors should consider both short- and long-term returns.
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
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Year 11/30/00
Ended Through
10/31/04 10/31/03 10/31/02 10/31/01
NET ASSET VALUE
Beginning of period $ 8.38 $ 6.68 $ 7.78 $ 10.00
Investment activities
Net investment income (loss) 0.14 0.13 0.09 0.10
Net realized and
unrealized gain (loss) 1.34 1.67 (1.12) (2.32)
Total from investment activities 1.48 1.80 (1.03) (2.22)
Distributions
Net investment income (0.13) (0.10) (0.07) -
Net realized gain (0.01) - - -
Total distributions (0.14) (0.10) (0.07) -
NET ASSET VALUE
End of period $ 9.72 $ 8.38 $ 6.68 $ 7.78
------- -------- -------- ---------
Ratios/Supplemental Data
Total return^ 17.86% 27.37% (13.38)% (22.20)%
Ratio of total expenses to
average net assets 0.50% 0.50% 0.50% 0.50%!
Ratio of net investment
income (loss) to average
net assets 1.97% 2.09% 1.59% 1.51%!
Portfolio turnover rate 58.2% 39.4% 49.0% 63.1%!
Net assets, end of period
(in thousands) $ 48,340 $ 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 and payments of no redemption or account fees.
! Annualized
The accompanying notes are an integral part of these financial statements.
T. Rowe Price International Equity Index Fund
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October 31, 2004
PORTFOLIO OF INVESTMENTS (1) Shares Value
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(Cost and value in $ 000s)
EUROPE/FAR EAST 1.4%
Common Stocks 1.4%
iShares MSCI EAFE (USD) 4,756 696
Total Europe/Far East (Cost $652) 696
EUROPE/FOREIGN 0.5%
Common Stocks 0.5%
iShares MSCI EMU (USD) 3,800 250
Total Europe/Foreign (Cost $224) 250
AUSTRALIA 5.5%
Common Stocks 5.2%
Adelaide Bank 482 3
Adelaide Brighton 521 1
Alinta (ss.) 1,708 10
Alumina 6,484 27
Amcor 4,755 27
AMP Limited 9,474 45
Ansell Limited 1,118 7
APN News & Media 664 2
Aristocrat Leisure 2,446 16
Austereo Group 1,422 2
Australand Property Group 3,157 4
Australia & New Zealand Banking 9,553 146
Australian Foundation Investment 4,818 12
Australian Gas Light 2,414 24
Australian Leisure and Hospitality Group 1,367 4
Australian Pharmaceutical Industries 883 2
Australian Stock Exchange 544 8
AWB 1,817 6
AXA Asia Pacific (ss.) 7,189 21
Bank of Queensland 353 3
Bendigo Bank 742 6
BHP Billiton 19,910 206
Billabong International 664 5
Bluescope Steel 3,926 23
Boral 3,012 15
Brambles Industries LTD (ss.) 5,038 27
Brickworks 406 3
Burns, Philip & Company * 5,903 4
Caltex Australia 618 4
Centro Properties Group * 3,690 13
CFS Gandel Retail Trust, Equity Units 7,589 9
Challenger Financial Services Group * 7,175 3
Coca Cola Amatil 2,691 15
Cochlear Limited 278 5
Coles Myer 6,542 47
Commonwealth Bank of Australia 6,688 160
Computershare 2,861 11
Corporate Express Australia 886 4
CSL Limited 1,005 22
CSR 4,729 10
Downer EDI 1,133 4
Envestra 2,638 2
Flight Centre 467 7
Foodland Associated 777 11
Foster's Group 10,318 39
Futuris 3,462 5
General Property Trust, Equity Units (ss.) 10,724 30
Gunns 450 1
Gunns (Stock split shares) * 903 3
GWA International 1,182 3
Harvey Norman 4,066 9
Hills Motorway Group 1,043 6
Iluka Resources (ss.) 1,120 4
Incitec Pivot 68 1
Insurance Australia Group (ss.) 8,394 34
iShares MSCI Australia (USD) 2,900 45
James Hardie Industries 2,570 12
John Fairfax (ss.) 1,397 4
Leighton Holdings (ss.) 696 6
Lend Lease (ss.) 2,061 18
Lion Nathan (ss.) 2,059 12
Macquarie Airports 2,548 5
Macquarie Bank 1,128 33
Macquarie Goodman Management 527 1
Macquarie Infrastructure Group (ss.) 9,892 27
Mayne Group 3,986 13
Metcash Trading 1,101 2
Minara Resources * 1,346 2
Mirvac (ss.) 3,681 12
National Australia Bank 8,049 170
National Foods 1,928 8
Newcrest Mining 1,674 21
News Corporation 6,536 53
Novogen Limited * 374 1
Nufarm 890 5
OneSteel (ss.) 2,950 6
Orica 1,451 18
Origin Energy (ss.) 3,750 19
Oxiana Limited * 4,625 3
Pacifica Group 329 1
Paperlinx 2,360 9
Patrick Corporation 3,565 15
Perpetual Trust Australia (ss.) 196 8
Promina Group 5,427 18
Publishing & Broadcasting 699 8
Qantas Airways 4,642 12
QBE Insurance (ss.) 3,541 36
Rinker Group 4,976 32
Rio Tinto 1,979 54
Rural Press 140 1
Santos 4,453 28
SFE Corporation (ss.) 514 3
Sigma 529 3
Simsmetal Group 486 6
Smorgon Steel Group 2,081 2
Sonic Healthcare 1,669 13
Southcorp *B176(ss.) 3,821 10
Southern Cross Broadcasting 318 3
Spotless Group 1,074 4
St. George Bank 2,685 47
Stockland 6,654 29
Suncorp Metway 2,738 35
Tabcorp 2,734 31
Telstra 11,258 39
Ten Network Holdings 2,623 8
Toll Holdings (ss.) 1,703 15
Transurban 2,735 13
UNiTAB 527 4
Virgin Blue Holdings * 1,194 2
Washington H. Soul Pattinson & Company 503 3
Wesfarmers 1,995 52
West Australian Newspapers 151 1
Westfield Group 8,929 100
Westpac Banking 9,478 134
WMC Resorces 5,768 29
Woodside Petroleum 2,672 39
Woolworths 5,512 55
2,519
Preferred Stocks 0.3%
News Corporation 16,504 130
Rural Press 297 2
132
Total Australia (Cost $2,091) 2,651
AUSTRIA 0.3%
Common Stocks 0.3%
Bank Austria Creditanstalt 227 17
Dest Electrizitas, Class A * 23 5
Erste Bank 946 42
EVN 58 3
Immofinanz Immobilien Anlagen * 1,321 11
OMV 71 17
Telekom Austria 1,981 30
Wienerberger 407 16
Total Austria (Cost $97) 141
BELGIUM 1.2%
Common Stocks 1.2%
Agfa Gevaert 520 16
Almancora * 52 3
Almanij 285 21
Belgacom * 1,024 38
CNP 17 3
Colruyt 62 9
Colruyt, Rights * 62 0
Delhaize Group 487 31
Dexia 4,402 88
Electrabel 214 80
Fortis 3,727 95
Groupe Bruxelles Lambert 340 26
Interbrew 899 32
KBC Bank 465 34
Mobistar * 170 13
RTL Group 161 11
SES Global GDR 893 9
Solvay 194 20
UCB 562 30
Umicore 122 9
Total Belgium (Cost $437) 568
CHINA 0.4%
Common Stocks 0.4%
Brilliance China Automotive (HKD) (ss.) 6,000 1
China Insurance (HKD) 2,000 1
China Mobile (Hong Kong) (HKD) 28,000 81
China Overseas Land (HKD) 6,000 1
China Resources Enterprise (HKD) 10,000 14
China Unicom (HKD) 12,000 9
Citic Pacific (HKD) 4,000 10
Cnooc (HKD) 50,000 26
Global Bio-chem Technology (HKD) 6,000 5
Guangzhou Investment Company (HKD) 10,000 1
Semiconductor Manufacturing International (HKD) *(ss.) 21,000 4
Shanghai Industrial Holdings (HKD) (ss.) 14,000 27
TCL (HKD) 4,000 1
TPV Technology (HKD) 2,000 1
Total China (Cost $195) 182
DENMARK 0.8%
Common Stocks 0.8%
A P Moller-Maersk, Series B 7 52
A P Moller-Maersk * 5 36
Carlsberg, Series B 203 9
Coloplast, Series B 58 6
Danisco 267 15
Danske Bank 3,470 97
Falck A/S * 187 2
H. Lundbeck 553 10
ISS 209 11
Jyske Bank A/S * 406 13
Novo Nordisk, Series B 1,183 59
Novozymes, Series B 320 14
TDC 1,120 41
Vestas Wind Systems * 973 12
William Demant * 113 5
Total Denmark (Cost $325) 382
FINLAND 1.2%
Common Stocks 1.2%
Fortum 2,018 31
Kone, Class B 208 13
Metso 490 7
Nokia 24,456 377
Outokumpu Oyj 717 13
Sampo, Series A (ss.) 2,195 26
SanomaWSOY Oyj, Series B * 183 4
Stora Enso, Series R 3,459 49
TietoEnator 429 12
UPM-Kymmene 2,739 54
Total Finland (Cost $677) 586
FRANCE 9.3%
Common Stocks 9.3%
Accor 1,045 43
Air France 709 12
Alcatel *(ss.) 6,596 96
Arcelor 2,501 47
Assurances Generales de France 298 20
Atos Origin * 176 11
Autoroutes du Sud de la France 364 17
AXA 9,911 213
BNP Paribas 4,603 313
Bouygues 1,320 52
Cap Gemini * 688 17
Carrefour 3,747 164
Casino Guichard-Perrachon (ss.) 197 14
Christian Dior 384 23
Ciments Francais 64 6
CNP Assurances 218 15
Compagnie de Saint-Gobain (ss.) 1,828 100
Credit Agricole (ss.) 3,101 91
Dassault Systemes 298 15
Essilor International 542 37
Eurazeo 123 9
France Telecom * 9,728 278
Gecina (ss.) 182 16
Groupe Danone 1,410 118
Imerys 168 12
JC Decaux * 350 9
Klepierre 108 8
L'Air Liquide 576 93
L'Oreal (ss.) 1,771 121
Lafarge 898 82
Lagardere S.C.A. 739 48
LVMH (ss.) 1,933 132
Michelin 560 30
Natexis Banques Populaires 51 6
Pernod-Ricard 381 53
Peugeot 960 59
Pinault Printemps Redoute 483 45
Publicis (ss.) 775 23
Renault 1,125 94
Rexel 107 5
Sagem (ss.) 86 8
Sanofi-Aventis 5,403 395
Schneider Electric, Series A 1,238 82
Snecma * 570 12
Societe BIC (ss.) 214 10
Societe Generale 2,339 217
Societe Television Francaise 1 (ss.) 848 26
Sodexho Alliance (ss.) 628 16
Suez 5,284 123
Technip 104 16
Thales 416 15
Thomson (ss.) 1,476 33
Total (ss.) 3,435 714
Unibail 237 31
Valeo 437 16
Veolia Environnement 1,597 48
Vinci 455 54
Vivendi Universal * 5,593 153
Total France (Cost $4,047) 4,516
GERMANY 6.9%
Common Stocks 6.7%
Adidas-Salomon 239 33
Allianz 1,971 209
Altana 398 20
AMB 53 4
BASF 3,076 192
Bayer 3,803 108
Bayerische Hypo-und Vereinsbank * 2,851 56
Beiersdorf, Series A 89 8
BMW 1,553 66
Celesio 208 15
Commerzbank * 2,361 43
Continental 695 38
DaimlerChrysler 5,285 218
Degussa (ss.) 182 7
Depfa Bank 1,815 27
Deutsche Bank 2,987 227
Deutsche Boerse 606 30
Deutsche Lufthansa * 1,417 19
Deutsche Post 2,348 46
Deutsche Postbank * 346 14
Deutsche Telekom * 16,589 318
E.On 3,654 297
Fresenius 38 3
Fresenius Medical Care 180 14
Hannover Rueckversicherung (ss.) 291 9
Heidelberger Druckmaschinen * 446 13
Heidelberger Zement 245 12
Henkel 213 15
Hypo Real Estate * 669 25
Infineon Technologies * 3,940 43
Karstadt (ss.) 344 4
Linde 471 28
MAN 543 19
Merck 70 4
METRO 854 41
MLP 436 7
Munich Re 1,198 117
Puma 64 16
RWE 2,102 111
SAP 1,216 207
Schering 1,056 68
Siemens 4,701 350
Suedzucker 435 8
T-Online International * 1,443 17
ThyssenKrupp 1,982 37
TUI (ss.) 703 15
Volkswagen 1,262 56
3,234
Preferred Stocks 0.2%
Fresenius 114 10
Fresenius Medical Care 122 7
Henkel (Non-voting shares) 327 24
Porsche 46 29
Wella AG 82 9
79
Total Germany (Cost $3,094) 3,313
GREECE 0.5%
Common Stocks 0.5%
Alpha Bank 1,204 34
Bank of Piraeus 1,292 17
Coca-Cola Hellenic Bottling 419 9
Commercial Bank of Greece 367 10
Cosmote 680 12
EFG Eurobank Ergasias 1,203 33
Greek Organization of Football Prognostics 820 17
Hellenic Petroleum 522 5
Hellenic Telecommunications Organization 1,943 30
National Bank of Greece 1,406 39
Public Power 560 14
Titan Cement * 300 8
Total Greece (Cost $175) 28
HONG KONG 2.3%
Common Stocks 2.3%
Asia Aluminum Holdings 8,000 1
Asia Satellite Telecommunications 500 1
ASM Pacific Technology 1,500 5
Bank of East Asia 7,600 22
Beijing Enterprises Holdings 2,000 2
BOC Hong Kong 22,500 41
Cafe De Coral 2,000 2
Cathay Pacific Airways 7,000 12
Chaoda Modern Agriculture (ss.) 2,100 1
Cheung Kong Holdings 9,000 75
Cheung Kong Infrastructure Holdings 4,000 11
China Everbright (ss.) 2,000 1
China Merchants Holdings 6,000 9
China National Aviation 4,000 1
China Resources Power Holdings 4,000 2
China Travel International Investment 10,000 3
CITIC International Financial 12,000 5
CLP 9,700 56
CNPC Hong Kong 10,000 2
COFCO International 2,000 1
Cosco Pacific 6,000 10
Dah Sing Financial 400 3
Dairy Farm International (USD) 4,500 11
Denway Motors 22,000 7
Esprit Holdings 4,500 24
First Pacific * 12,000 3
Fountain Set Holdings 2,000 1
Giordano 8,000 4
Great Eagle 1,000 2
Guangdong Investment 4,000 1
Guoco Group 1,000 8
Hang Lung Development (ss.) 5,000 8
Hang Lung Properties 7,000 10
Hang Seng Bank 4,000 53
Henderson Investor 5,000 7
Henderson Land Development 4,000 19
Hengan International Group 4,000 2
Hong Kong & China Gas 21,930 42
Hong Kong & Shanghai Hotels 5,000 4
Hong Kong Aircraft Engineering 400 2
Hong Kong Electric 8,500 38
Hong Kong Exchanges & Clearing 6,000 14
Hong Kong Land (USD) 10,000 21
Hopewell Highway Infrastructure 3,500 2
Hopewell Holdings 4,000 9
Hung Hing Printing Group 2,000 2
Hutchison Harbour Ring 6,000 1
Hutchison Whampoa 17,000 131
Hysan Development 4,000 7
i-Cable Communication 2,200 1
Industrial & Commercial Bank of China 3,000 4
Interchina Holdings * 10,000 0
International Bank of Asia 2,000 1
iShares MSCI Hong Kong (USD) 2,100 23
Jardine Matheson (USD) 2,000 30
Jardine Strategic (USD) 1,500 10
JCG Holdings 2,000 2
Johnson Electric 10,500 10
Kerry Properties 1,500 3
Kingboard Chemical Holdings, Warrants, 12/31/06 * 200 0
Kingboard Chemical Holdings (ss.) 2,000 4
Kowloon Motor Bus Holdings 2,000 9
Lee & Man Paper Manufacturing 2,000 1
Legend 16,000 6
Li & Fung 10,000 15
Liu Chong Hing Bank 1,000 1
Mandarin Oriental International (USD) * 6,000 4
MTR 9,000 13
New World Development 12,000 10
Next Media * 2,000 1
NWS Holdings 5,000 7
Oriental Press Group 2,000 1
PCCW Limited * 21,200 13
SCMP Group 6,000 2
Shangri-La Asia (ss.) 6,000 7
Shenzhen International 22,500 1
Shenzhen Investment 2,000 0
Shun Tak Holdings (ss.) 8,000 5
Sino Land (ss.) 12,000 10
Skyworth Digital Holdings 6,000 2
Smartone Telecommunications 1,000 1
Sun Hung Kai Properties 10,000 92
Swire Pacific, Series A 4,500 32
Swire Pacific, Series B 7,500 9
TCL Communication Technology * 1,600 0
Techtronic Industries (ss.) 6,000 12
Television Broadcast 2,000 9
Texwinca Holdings 2,000 2
Tingyi Holding 6,000 1
Wharf 6,000 20
Wheelock 4,000 6
Wing Hang Bank 1,500 10
Wing Lung Bank 600 5
Yue Yuen Industrial 5,500 14
Total Hong Kong (Cost $1,003) 1,108
IRELAND 0.7%
Common Stocks 0.7%
Allied Irish Banks 4,755 83
Anglo Irish Bank 1,783 34
Bank of Ireland (Dublin Listing) 5,289 72
CRH 2,826 68
Elan * 2,026 52
Irish Life & Permanent 1,441 24
Kerry Group 811 18
Total Ireland (Cost $290) 351
ITALY 4.4%
Common Stocks 4.4%
AEM 3,698 8
Alleanza Assicurazioni 2,303 27
Assicurazioni Generali 6,723 199
Autogrill * 653 10
Autostrade * 1,510 33
Banca Antonveneta * 1,486 31
Banca Carige 2,465 10
Banca Fideuram (ss.) 1,594 8
Banca Intesa 23,390 96
Banca Lombarda 1,670 21
Banca Monte dei Paschi di Siena 6,414 19
Banca Nazionale Lavoro (ss.) 8,289 19
Banca Popol Emilia Romagna * 389 17
Banca Popolare di Lodi 1,476 16
Banche Poplari Unite 1,766 31
Banco Popolare di Verona e Novara 1,954 35
Benetton 429 5
Bulgari 760 8
Capitalia 8,460 32
Edison * 6,357 13
Enel (ss.) 23,845 216
ENI S.p.A. 15,826 359
Fiat * 3,089 22
FinecoGroup * 1,548 11
Finmeccanica 33,135 26
Fondiaria-Sai 509 12
Gruppo Editoriale L'Espresso 1,134 6
Ifil 2,665 10
Italcementi 561 9
Italcementi-RNC 382 4
Luxottica Group 698 13
Mediaset 3,113 35
Mediobanca 2,153 30
Mediolanum (ss.) 1,145 7
Pirelli (ss.) 13,151 15
RAS 1,768 37
RCS MediaGroup 2,890 14
Saipem 2,550 29
San Paolo IMI 5,535 70
Seat Pagine Gialle 21,372 7
Snam Rete Gas 5,020 25
Telecom Italia 56,997 190
TIM SpA 21,702 128
Telecom Italia-RNC 25,539 64
Terna 5,290 13
UniCredito Italiano 24,028 129
Unipol 811 3
2,122
Preferred Stocks 0.0%
Unipol * 1,920 5
5
Total Italy (Cost $1,871) 2,127
JAPAN 20.8%
Common Stocks 20.8%
ABC-Mart 100 2
ACOM 400 25
Advantest 400 28
AEON 2,600 42
AEON Credit Service (ss.) 100 7
AIFUL 200 20
Aioi Insurance 2,000 8
Aisin Seiki 1,000 22
Ajinomoto 4,000 44
Alfresa Holdings (ss.) 100 4
All Nippon Airways (ss.) 9,000 28
Alps Electric 1,000 12
Amada 1,000 5
Aoyama Trading 200 4
Arisawa Manufacturing 100 4
Asahi Breweries 2,000 21
Asahi Glass 5,000 46
Asahi Kasei 6,000 26
Asatsu-DK (ss.) 100 3
Awa Bank 2,000 12
Bandai 400 9
Bank of Fukuoka (ss.) 2,000 11
Bank of Kyoto (ss.) 1,000 7
Bank of Nagoya 2,000 10
Bank of Yokohama 5,000 30
Benesse (ss.) 300 8
Bosch Automotives 1,000 5
Bridgestone 3,000 54
Brother Industries 1,000 9
Canon 5,000 247
Casio Computer 1,000 12
Central Glass (ss.) 1,000 7
Central Japan Railway (ss.) 5 40
Chiba Bank (ss.) 3,000 19
Chiyoda * 1,000 8
Chubu Electric (ss.) 2,900 63
Chugai Pharmaceutical 1,900 30
Chugoku Electric Power 1,500 26
Circle K Sunkus * 100 2
Citizen Watch 1,000 9
Coca-Cola West Japan 100 2
Cosmo Oil (ss.) 2,000 6
Credit Saison 800 26
CSK (ss.) 300 12
Dai Nippon Printing 3,000 41
Daicel Chemical Industries 1,000 5
Daido Steel 1,000 3
Daiei * 1,500 3
Daihatsu Motor (ss.) 1,000 7
Daiichi Pharmaceutical 1,200 23
Daikin Industries 1,000 24
Daimaru (ss.) 1,000 7
Dainippon Ink & Chemicals 9,000 20
Dainippon Pharmaceutical (ss.) 1,000 9
Dainippon Screen 1,000 5
Daishi Bank 1,000 3
Daito Trust Construction (ss.) 600 25
Daiwa House Industry 2,000 20
Daiwa Securities 7,000 43
Denki Kagaku Kogyo Kabushiki Kaisha 3,000 9
Denso 2,300 55
Dentsu 7 19
Don Quijote 100 6
Dowa Mining (ss.) 1,000 6
East Japan Railway 16 84
Ebara Section 1,000 5
Eisai 1,200 35
FamilyMart 400 11
Fanuc (ss.) 900 54
Fast Retailing 300 19
Fuji Electric 5,000 13
Fuji Heavy Industries 4,000 19
Fuji Photo Film 2,000 68
Fuji Soft ABC 200 6
Fuji Television Network 2 5
Fujikura (ss.) 2,000 9
Fujisawa Pharmaceutical 1,000 26
Fujitsu 8,000 48
Fukuyama Transporting 1,000 4
Funai Electric 100 13
Furukawa Electric (ss.) 2,000 8
Futaba (ss.) 100 2
Global Media Online * 100 2
Goodwill Group 2 4
Gunma Bank 2,000 10
Gunze Limited 1,000 5
Hachijuni Bank 2,000 12
Hamamatsu Photonics (ss.) 100 2
Hankyu *(ss.) 4,000 14
Hankyu Department Stores 1,000 7
Hanshin Electric Railway 1,000 3
Heiwa 700 11
Hikari Tsushin 100 6
Hino Motors 1,000 7
Hirose Electric (ss.) 200 20
Hiroshima Bank (ss.) 2,000 9
Hitachi 13,000 82
Hitachi Cable 1,000 4
Hitachi Capital (ss.) 100 2
Hitachi Chemical 300 5
Hitachi Construction Machinery 400 5
Hokkaido Electric Power 800 15
Hokkoku Bank 1,000 4
Hokugin Financial Group 15,000 34
Hokuriku Electric Power 800 14
Honda 3,700 179
Hoya 400 41
Hyakujushi Bank 1,000 6
Ibiden 500 8
Invoice * 19 3
Invoice, Warrants, 9/30/05 * 19 0
Isetan (ss.) 700 7
iShares MSCI Japan (USD) 16,800 167
Ishikawajima Harima Heavy Industries (ss.) 6,000 8
Isuzu Motors *B692 (ss.) 4,000 11
Ito (ss.) 100 5
Ito-Yokado 2,000 72
Itochu *(ss.) 6,000 26
Itochu Techno-Science (ss.) 100 4
Iyo Bank 1,000 7
Izumi 100 2
Jafco (ss.) 200 10
Japan Airlines System * 4,000 11
Japan Petroleum Exploration 100 4
Japan Tobacco 5 44
JFE Holdings 2,200 59
JGC (ss.) 1,000 11
Joyo Bank 3,000 13
JSAT 1 3
JSR 1,000 18
Juroku Bank 1,000 4
Kagoshima Bank 1,000 6
Kajima 11,000 42
Kamigumi 1,000 7
Kaneka 1,000 10
Kansai Electric Power 3,800 71
Kansai Paint (ss.) 1,000 6
Kao (ss.) 3,000 69
Katokichi 100 2
Kawasaki Heavy Industries 6,000 10
Kawasaki Kisen Kaisha 5,000 33
KDDI 17 82
Keihin Electric Express Railway (ss.) 2,000 12
Keio Electric Railway 2,000 11
Keyence 200 45
Kikkoman (ss.) 1,000 9
Kinden (ss.) 1,000 7
Kinki Nippon Railways (ss.) 7,000 22
Kirin Beverage * 100 2
Kirin Brewery 4,000 36
Kobe Steel 10,000 14
Koei 1,300 30
Kokuyo (ss.) 500 5
Komatsu 5,000 33
Komeri (ss.) 100 2
Konami 500 11
Konica Minolta Holdings 2,000 27
Kose 100 4
Kubota 3,000 14
Kuraray 2,000 16
Kuraya Sanseido (ss.) 500 5
Kurita Water Industries 500 7
Kyocera 1,000 73
Kyowa Hakko Kogyo 2,000 14
Kyushu Electric Power 1,700 34
Lawson 400 13
Leopalace21 500 9
Lion Corp (ss.) 1,000 5
Mabuchi Motor 200 15
Makita (ss.) 1,000 14
Marubeni 6,000 16
Marui 2,000 25
Maruichi Steel Tube (ss.) 2,000 32
Matsui Securities 200 5
Matsumotokiyoshi 200 5
Matsushita Electric Industrial 13,000 188
Matsushita Electric Works (ss.) 671 6
Mazda Motor 3,000 9
Meiji Dairies 1,000 6
Meiji Seika Kaisha (ss.) 1,000 4
Meitec (ss.) 200 8
Millea 7 92
Minebea 2,000 8
Misumi (ss.) 100 3
Mitsubishi 6,000 66
Mitsubishi Chemical 9,000 26
Mitsubishi Electric 8,000 37
Mitsubishi Estate (ss.) 5,000 53
Mitsubishi Gas Chemical (ss.) 1,000 4
Mitsubishi Heavy Industries 17,000 48
Mitsubishi Logistics 1,000 9
Mitsubishi Materials 4,000 8
Mitsubishi Rayon 2,000 6
Mitsubishi Securities (ss.) 1,000 9
Mitsubishi Tokyo Financial 17 144
Mitsui 6,000 50
Mitsui Chemical 3,000 15
Mitsui Engineering & Shipbuilding (ss.) 3,000 5
Mitsui Fudosan (ss.) 4,000 42
Mitsui Mining & Smelting 4,000 16
Mitsui O.S.K. Lines 5,000 30
Mitsui Sumitomo Insurance 8,000 66
Mitsui Trust 3,000 21
Mitsukoshi 2,000 9
Mitsumi Electric 400 5
Mizuho Financial Group 46 177
Mizuho Investors Securities * 2,000 4
Mizuho Trust & Banking (ss.) 14,000 23
Murata Manufacturing 1,200 57
Musashino Bank 100 4
Nagoya Railroad (ss.) 3,000 10
Namco 200 2
Namco, Warrants, 11/23/04 * 200 2
NEC 7,000 39
NEC Electronics 100 5
Net One Systems 2 8
NGK Insulators 1,000 8
NGK Spark Plug (ss.) 1,000 10
NHK Spring 1,000 7
Nichicon 200 2
Nichirei Corp. 1,000 3
Nidec 100 11
Nikko Cordial 8,000 36
Nikon 1,000 10
Nintendo 500 56
Nippon Broadcasting System 30 1
Nippon Express 4,000 19
Nippon Light Metal 2,000 5
Nippon Meat Packer 1,000 12
Nippon Mining Holdings 3,500 17
Nippon Oil 6,000 38
Nippon Paint 1,000 4
Nippon Sheet Glass 1,000 3
Nippon Shokubai 1,000 7
Nippon Steel 27,000 63
Nippon Telegraph & Telephone 27 115
Nippon Television Network 10 1
Nippon Unipac (ss.) 4 18
Nippon Yusen 4,000 20
Nipponkoa Insurance 3,000 17
Nishi-Nippon Bank 3,000 13
Nishi-Nippon Railroad 1,000 3
Nissan Chemical Industries 1,000 8
Nissan Motor 11,700 132
Nissay Dowa General Insurance 1,000 5
Nisshin Seifun Group 1,000 10
Nisshin Steel 5,000 11
Nisshinbo Industries 1,000 7
Nissin Food Products 400 10
Nitori (ss.) 50 3
Nitto Denko 700 33
NOK (ss.) 1,000 30
Nomura 10,000 123
Nomura Research Institute 200 17
NSK (ss.) 2,000 9
NTN (ss.) 2,000 11
NTT Data 6 16
NTT DoCoMo 104 183
Obayashi 3,000 16
Odakyu Electric Railway (ss.) 3,000 16
Ogaki Kyoritsu Bank 1,000 5
Oji Paper (ss.) 5,000 29
Oki Electric Industry *(ss.) 3,000 10
Olympus Optical (ss.) 1,000 19
Omron 1,000 23
Ono Pharmaceutical 300 14
Onward Kashiyama 1,000 13
Oracle Japan (ss.) 100 5
Orient * 2,000 5
Oriental Land (ss.) 300 18
Orix (ss.) 400 47
Osaka Gas 9,000 26
Otsuka * 100 5
Park24 (ss.) 100 1
Park24, Warrants, 12/22/04 * 100 2
Pasona * 1 3
Pioneer 700 13
Promise 550 35
Q.P. Corporation (ss.) 300 3
Resona Holdings * 22,000 36
Ricoh 3,000 56
Rinnai (ss.) 100 3
Rohm 600 62
Ryohin Keikaku 100 4
Sagami Railway 1,000 3
San In Godo Bank 1,000 8
Sanken Electric (ss.) 1,000 12
Sankyo 1,600 33
Sankyo/Gunma 300 12
Sankyo Seiki Manufacturer * 1,000 10
Santen Pharmaceutical 300 5
Sanyo Electric (ss.) 7,000 22
Sanyo Shinpan Finance 100 6
Sapporo Breweries 1,000 4
Sapporo Hokuyo 1 7
Secom 1,000 36
Sega Sammy Holdings *(ss.) 312 14
Seibu Railway (ss.) 1,000 5
Seiko Epson 800 33
Seino Transportation (ss.) 1,000 9
Seiyu *(ss.) 1,000 2
Sekisui Chemical 2,000 13
Sekisui House 3,000 31
Seven-Eleven Japan 2,000 58
SFCG 30 6
Sharp (ss.) 4,000 55
Shiga Bank 1,000 5
Shikoku Bank 1,000 6
Shikoku Electric Power (ss.) 1,000 18
Shima Seiki Manufacturing (ss.) 100 3
Shimachu 100 2
Shimadzu 1,000 6
Shimamura (ss.) 100 7
Shimano 1,500 37
Shimizu (ss.) 3,000 13
Shin-Etsu Chemical 1,800 68
Shinko Electric Industries (ss.) 100 3
Shinko Securities (ss.) 4,000 11
Shinsei Bank (ss.) 4,000 26
Shionogi & Co. 1,000 16
Shiseido (ss.) 2,000 26
Shizuoka Bank 3,000 25
Showa Denko 5,000 12
Showa Shell Sekiyu 600 5
Sky Perfect Communications 2 2
Skylark (ss.) 400 7
SMBS Friend Securities * 500 3
SMC 300 32
Softbank 900 41
Softbank Investment 9 3
Sohgo Security Services (ss.) 2,100 29
Sompo Japan Insurance 4,000 35
Sony 4,800 167
Square Enix (ss.) 100 3
Stanley Electric 300 5
Sumisho Computer Systems (ss.) 1,100 23
Sumisho Lease 100 4
Sumitomo 5,000 37
Sumitomo Bakelite (ss.) 2,000 12
Sumitomo Chemicals 6,000 29
Sumitomo Electric Industries (ss.) 3,000 28
Sumitomo Forestry 1,000 9
Sumitomo Heavy Industries *(ss.) 2,000 6
Sumitomo Metal Industries 18,000 22
Sumitomo Metal Mining 3,000 20
Sumitomo Mitsui Financial 23 149
Sumitomo Osaka Cement 3,000 7
Sumitomo Realty & Development 2,000 22
Sumitomo Rubber Industries 2,000 17
Sumitomo Trust & Banking (ss.) 6,000 35
Suruga Bank 1,000 8
Suzuken 100 2
Suzuki Motor 2,000 35
T&D Holdings * 950 42
Taiheiyo Cement 6,000 14
Taisei 3,000 11
Taisho Pharmaceutical 1,000 18
Taiyo Nippon Sanso (ss.) 1,000 5
Taiyo Yuden 1,000 10
Takara Holdings (ss.) 1,000 6
Takashimaya 1,000 9
Takeda Chemical Industries 3,500 169
Takefuji (ss.) 300 19
Tanabe Seiyaku 1,000 9
TDK 500 35
Teijin 3,000 12
Teikoku Oil (ss.) 1,000 6
TEPCO 5,400 122
Terumo 700 17
The 77 Bank 1,000 6
The Chugoku Bank 1,000 10
The Higo Bank 1,000 6
The Hyakugo Bank 2,000 11
The Yokohama Rubber Company 1,000 4
THK (ss.) 600 10
Tobu Railway 3,000 11
Toda Corp. 1,000 4
Toho 600 9
Toho Gas 2,000 6
Tohoku Electric Power 1,900 32
Tokuyama Corp. 1,000 5
Tokyo Electron 700 38
Tokyo Gas 11,000 41
Tokyo Steel Manufacturing 500 8
Tokyo Style 1,000 11
Tokyo Tatemono * 1,000 6
Tokyu 4,000 18
Tokyu Land 1,000 3
Tomen *(ss.) 3,000 4
Tonen General Sekiyu (ss.) 2,000 17
Toppan Forms (ss.) 100 1
Toppan Printing (ss.) 3,000 29
Toray Industries 5,000 23
Toshiba (ss.) 12,000 48
Tosoh 2,000 8
Tostem Inax Holding (ss.) 1,000 18
Toto (ss.) 1,000 9
Toyo Information 200 7
Toyo Seikan Kaisha 1,000 16
Toyobo 3,000 7
Toyoda Gosei 1,100 21
Toyota Industries 600 14
Toyota Motor (ss.) 14,200 553
Toyota Tsusho (ss.) 1,000 13
Trend Micro (ss.) 500 24
TV Asahi 1 2
Ube Industries 3,000 4
UFJ *(ss.) 20 93
UFJ Tsubasa Securities 2,000 8
ULVAC * 100 2
Uni-Charm (ss.) 200 10
UNY 1,000 10
Ushio 1,000 17
USS (ss.) 120 10
Wacoal 1,000 11
West Japan Railway 8 32
World Company 100 3
Yahoo Japan * 7 32
Yahoo Japan (Bonus shares) * 5 22
Yakult Honsha (ss.) 1,000 16
Yamada Denki (ss.) 400 14
Yamaguchi Bank 1,000 10
Yamaha 700 11
Yamaha Motor 1,000 15
Yamanouchi Pharmaceutical 1,900 70
Yamato Transport 2,000 27
Yamazaki Baking 2,000 18
Yaskawa Electric 1,000 5
Yokogawa Electric (ss.) 1,000 13
Yoshinoya D&C 1 2
Zeon 1,000 8
Total Japan (Cost $9,554) 10,072
NETHERLANDS 4.9%
Common Stocks 4.9%
ABN Amro Holdings 8,641 207
Aegon 8,021 88
Akzo Nobel 1,508 57
ASML Holding * 2,547 36
Corio 274 14
DSM 429 23
Euronext 657 19
European Aeronautic Defense & Space (ss.) 1,704 49
Fortis (Unified shares) 2,916 74
Heineken 1,440 45
Heineken Holding 513 14
ING Groep GDS 11,406 302
Koninklijke Numico * 877 29
Philips Electronics 6,911 163
Randstad Holding * 470 16
Reed Elsevier 3,935 52
Rodamco Europe 396 27
Royal Ahold * 8,369 58
Royal Dutch Petroleum 11,075 601
Royal KPN 13,393 107
STMicroelectronics 3,625 67
TPG 2,450 59
Unilever GDS (ss.) 3,015 175
VNU 1,332 36
Wolters Kluwer GDS 1,579 29
Total Netherlands (Cost $2,367) 2,347
NEW ZEALAND 0.2%
Common Stocks 0.2%
Air New Zealand * 395 0
Auckland International Airport 892 4
Briscoe Group 95 0
Carter Holt Harvey 3,779 6
Contact Energy 1,048 4
Fisher & Paykel Appliances 1,226 3
Fisher & Paykel Healthcare 985 2
Fletcher Building 1,900 7
Independent Newspapers 3,598 13
Infratil Limited 1,016 2
Infratil Limited, Warrants, 7/10/09 * 203 0
Kiwi Income Property Trust, Equity Units 6,039 5
NGC Holdings 1,302 3
Port of Tauranga 94 0
Ports of Auckland 30 0
Sanford 733 2
Sky City 2,054 6
Sky Network Television * 136 1
Telecom Corporation of New Zealand 9,865 39
Tower * 2,200 4
Warehouse Group 1,391 4
Westpac Trust Investments 165 2
107
Preferred Stocks 0.0%
Tenon Limited * 877 1
1
Total New Zealand (Cost $81) 108
NORWAY 0.5%
Common Stocks 0.5%
DNB Holding 5,147 44
Norsk Hydro 1,050 77
Norske Skogsindustrier 684 12
Orkla, Series A 1,095 31
Statoil ASA 2,297 33
Storebrand ASA 1,817 14
Telenor 4,601 37
Yara International * 1,152 12
Total Norway (Cost $191) 260
PORTUGAL 0.4%
Common Stocks 0.4%
Banco BPI (ss.) 2,741 11
Banco Comercial Portugues 12,766 30
Banco Espirito Santo 374 6
Brisa-Auto Estradas de Portugal 2,239 18
CIMPOR 907 5
Electricidade de Portugal (ss.) 11,555 34
Portugal Telecom 6,621 75
PT Multimedia-Servicos de Telecomunicacoes e Multimedia 255 6
Total Portugal (Cost $157) 185
SINGAPORE 0.9%
Common Stocks 0.9%
Allgreen Properties 1,000 1
BIL International * 9,500 6
Capitacommercial, REIT * 400 0
CapitaLand 4,000 4
Capitamall Trust, REIT 4,000 4
Chartered Semiconductor Manufacturing * 3,000 2
China Aviation Oil Singapore Corporation 1,400 1
City Developments 3,000 11
ComfortDelGro Corporation 10,012 9
Creative Technology 350 4
Cycle & Carriage 1,000 5
Datacraft Asia (USD) * 3,000 2
DBS Group 6,000 56
Elec & Eltek (USD) 1,400 4
Fortune, REIT (HKD) 2,000 2
Fraser & Neave 1,000 8
Haw Par 1,103 3
Hong Leong Finance 1,000 2
iShares MSCI Singapore (USD) 1,100 8
Keppel 4,000 19
MobileOne Limited 5,000 5
NatSteel 4,000 5
Neptune Orient Lines 3,000 5
Noble Group 4,000 3
Overseas Chinese Banking 5,000 41
Pacific Century Regional Developments * 3,600 1
Parkway 2,000 2
People's Food Holdings 2,000 1
Sembcorp 3,000 3
Sembcorp Logistics 2,000 3
Sembcorp Marine 7,000 4
Singapore Airlines 3,000 19
Singapore Exchange 4,000 4
Singapore Land 1,000 3
Singapore Post 6,000 3
Singapore Press 8,500 24
Singapore Technologies Engineering 6,000 7
Singapore Telecommunications 33,642 49
Singapore Telecommunications CUFS GDR (AUD) 1,237 2
SMRT 2,000 1
ST Assembly Test Services * 4,000 2
United Industrial 5,000 3
United Overseas Bank 6,520 53
United Overseas Land * 2,000 3
Venture Manufacturing 1,000 9
Want Want Holdings (USD) 8,000 8
Wing Tai Holdings * 1,000 1
Total Singapore (Cost $372) 415
SPAIN 3.9%
Common Stocks 3.9%
Abertis Infraestructuras (ss.) 1,951 36
Abertis Infraestructuras, Series A * 85 2
Acciona (ss.) 136 10
Acerinox (ss.) 1,387 19
ACS Actividades 1,876 36
Alba (ss.) 159 5
Altadis, Series A 1,533 56
Amadeus Global Travel Distribution (ss.) 1,866 15
Antena 3 Television * 104 7
Banco Bilbao Vizcaya Argentaria (ss.) 17,806 279
Banco de Sabadell (ss.) 1,617 35
Banco Popular Espanol 1,062 60
Banco Santander Central Hispano (ss.) 24,657 275
Bankinter (ss.) 397 18
Cia Espanola de Petroleos 347 13
Corporacion Mapfre (ss.) 560 7
Endesa (ss.) 5,572 113
FCC 281 11
Gamesa 570 8
Gas Natural (ss.) 1,168 32
Gestevision Telecino * 520 10
Grupo Ferrovial (ss.) 360 16
Iberdrola 4,756 104
Inditex (ss.) 1,280 32
Promotora de Informaciones 410 8
Repsol 6,436 139
Sacyr Vallehermoso (ss.) 703 11
Sogecable * 497 20
Telefonica 26,022 429
Terra Networks *(ss.) 1,811 7
Union Electrica Fenosa 1,608 39
Zardoya Otis 460 10
Total Spain (Cost $1,533) 1,862
SWEDEN 2.4%
Common Stocks 2.4%
Ainax AB *(ss.) 122 4
Assa Abloy (ss.) 1,788 24
Atlas Copco, Series A (ss.) 671 28
Atlas Copco, Series B 244 9
Electrolux, Series B 1,493 28
ForeningsSparbanken, Series A 2,088 44
Gambro, Series A 1,314 15
Gambro, Series B (ss.) 455 5
Hennes & Mauritz, Series B 1,539 45
Holmen, Series B (ss.) 302 9
Industrivarden, Series A 834 18
Industrivarden, Series C 174 3
Investor, Series A 915 10
Investor, Series B 3,103 34
iShares MSCI Sweden (USD) 800 15
LM Ericsson, Series B * 81,005 235
NORDEA 15,369 133
Sandvik, Series A 1,388 52
Scania, Series B 527 19
SEB, Series A 3,556 59
Securitas, Series B 1,787 24
Skandia Forsakrings 5,377 20
Skanska 2,045 22
SKF, Series A 101 4
SKF, Series B 496 19
SSAB Svenskt Stal, Series A 292 6
SSAB Svenskt Stal, Series B 203 4
Svenska Cellulosa, Series B 1,027 38
Svenska Handelsbanken, Series A 3,427 74
Swedish Match 1,791 20
Tele2, Series B (ss.) 710 24
TeliaSonera (ss.) 6,066 33
TeliaSonera (EUR) 1,303 7
Volvo, Series A 645 24
Volvo, Series B 1,676 63
Total Sweden (Cost $971) 1,171
SWITZERLAND 6.6%
Common Stocks 6.6%
ABB * 10,745 62
Adecco 731 35
Baloise 291 12
Ciba Specialty Chemicals * 380 26
Clariant 1,209 16
Compagnie Financiere Richemont, Equity Units, Class A 2,747 78
Converium Holding 751 6
Credit Suisse Group * 6,154 210
Givaudan 44 27
Holcim 909 49
iShares MSCI Switzerland (USD) 3,900 60
Julius Baer 41 11
Keuhne & Nagel * 34 6
Lonza Group 250 12
Nestle 2,078 491
Nobel Biocare Holding 133 22
Novartis 14,883 709
Pargesa Holdings 11 35
Roche Holding (Bearer shares) 115 14
Roche Holding (Participation certificates) 3,668 375
Schindler Holding 16 6
Schindler Holding (Participation certificates) 20 6
Serono 30 19
Societe Generale de Surveillance 31 20
Straumann * 36 7
Swatch (Bearer shares) 194 26
Swatch (Registered shares) 455 13
Swiss Life Holding * 141 18
Swiss Re 1,692 104
Swisscom 136 49
Syngenta * 578 55
Synthes 220 23
UBS 6,606 476
Zurich Financial Services * 755 107
Total Switzerland (Cost $2,964) 3,185
THAILAND 0.0%
Common Stocks 0.0%
Total Access Communications (USD) * 400 1
Total Thailand (Cost $1) 1
UNITED KINGDOM 24.1%
Common Stocks 24.1%
3i Group 3,226 34
Abbey National 7,787 90
Aegis 6,766 13
Alliance & Leicester 2,412 38
Alliance Trust 186 9
Alliance UniChem 1,408 17
Allied Domecq 5,830 52
Amvescap 4,254 23
Anglo American 7,614 167
Antofagasta 442 8
Associated British Foods 2,097 27
Associated British Ports 1,742 15
AstraZeneca 8,755 359
Aviva 11,550 115
AWG * 776 10
BAA 5,593 59
BAE Systems 16,008 70
Barclays 34,074 333
BBA 2,423 12
BG Group 18,001 117
BHP Billiton PLC 12,997 132
BOC 2,619 42
Boots Group 4,018 49
BP 114,587 1,109
BPB 2,610 20
Bradford & Bingley 3,409 17
Brambles Industries PLC 3,817 18
British Airways * 2,898 11
British America Tobacco 8,547 129
British Land 2,592 35
British Sky Broadcasting 7,651 71
BT Group 45,155 154
Bunzl 2,398 18
Burberry Group 810 6
Cable & Wireless 12,528 24
Cadbury Schweppes 10,851 90
Cairn Energy * 841 23
Capita 3,510 23
Carnival 1,108 59
Centrica 20,303 90
Cobham 586 15
Compass 11,334 47
Corus * 23,353 21
Daily Mail & General Trust 1,511 20
Diageo 15,732 210
Dixons 10,223 32
Electrocomponents 2,335 12
EMAP 1,352 19
EMI 4,207 16
Enterprise Inns 1,844 21
Exel 1,690 22
Foreign and Colonial Investment Trust 5,403 18
Friends Provident 10,301 26
Gallaher 3,435 43
GKN 3,961 16
GlaxoSmithKline 31,027 653
Group 4 Securicor * 7,533 16
GUS 5,297 87
Hammerson 1,534 21
Hanson 3,876 29
Hays 9,577 23
HBOS 20,474 274
HHG * 14,619 12
Hilton Group 8,305 39
HSBC 58,634 946
ICAP 2,429 10
Imperial Chemical 6,262 24
Imperial Tobacco Group 3,844 90
InterContinental Hotels 3,726 46
International Power * 7,830 23
Invensys * 33,576 9
iShares MSCI United Kingdom (USD) 11,300 190
ITV 21,450 42
J Sainsbury 6,689 32
Jardine Lloyd Thomson Group 813 7
Johnson Matthey 1,157 20
Johnston Press 1,500 15
Kelda Group 1,996 20
Kesa Electricals 2,920 15
Kingfisher 12,192 68
Land Securities 2,448 54
Legal & General Group 34,136 62
Liberty International 1,700 27
Lloyds TSB 29,324 232
Logica CMG 4,189 14
Lonmin 746 14
Man Group 1,621 39
Marks & Spencer 10,094 66
Matalan 1,523 6
Misys 2,863 11
Mitchells & Butlers 2,797 15
mmO2 * 45,658 88
National Grid Group 15,876 138
Next Group 1,392 43
Northern Rock 2,219 30
Old Mutual 20,203 43
Pearson 4,197 46
Peninsular & Oriental Steam Navigation 3,889 19
Persimmon 1,516 17
Premier Farnell 1,971 7
Provident Financial 1,412 15
Prudential 12,073 88
Prudential, Rights * 1,613 3
Rank 3,206 17
Reckitt Benckiser 3,667 101
Reed Elsevier 6,648 59
Rentokil Initial 9,549 27
Reuters 7,509 51
Rexam 2,884 23
Rio Tinto 5,466 143
RMC 1,407 22
Rolls-Royce Group * 8,879 42
Rolls-Royce Group, Class B * 273,193 1
Royal & Sun Alliance 15,987 22
Royal Bank of Scotland 16,464 485
SABMiller 5,268 76
Sage Group 6,749 23
Schroders 868 10
Schroders (Non-Voting Shares) 434 5
Scottish & Newcastle 4,692 35
Scottish & Southern Energy 4,507 69
Scottish Mortgage Investment Trust 2,117 12
Scottish Power 9,748 79
Severn Trent 1,805 30
Shell Transport & Trading 50,773 399
Shire Pharmaceuticals 2,510 24
Signet Group 9,213 18
Slough Estates 2,200 18
Smith & Nephew 4,881 41
Smiths 2,958 40
Standard Chartered 6,160 110
Tate & Lyle 2,542 20
Tesco 40,484 213
TI Automotive *@ 270 0
Tomkins 4,127 19
Travis Perkins 680 17
Trinity Mirror 1,547 18
Unilever N.V. 14,637 123
United Business Media 2,023 18
United Utilities 3,382 36
United Utilities, Class A 984 7
Vodafone 352,165 902
WH Smith 1,003 6
Whitbread 1,558 23
William Hill 2,144 19
William Morrison Supermarkets 13,993 58
Witan Investment Trust 1,844 10
Wolseley 3,060 53
WPP Group 6,214 62
Xstrata 2,497 39
Yell Group 3,657 25
11,664
Preferred Stocks 0.0%
ITV (Convertible shares) * 370 0
0
Total United Kingdom (Cost $10,634) 11,664
SHORT-TERM INVESTMENTS 2.7%
Money Market Funds 2.7%
T. Rowe Price Reserve Investment Fund, 1.81% # ! 1,288,308 1,288
Total Short-Term Investments (Cost $1,288) 1,288
SECURITIES LENDING COLLATERAL 8.2%
Money Market Pooled Account 8.2%
Investment in money market pooled account managed
by JP Morgan Chase Bank, London, 1.788% # 3,967,482 3,967
Total Securities Lending Collateral (Cost $3,967) 3,967
Total Investments in Securities
111% of Net Assets (Cost $49,258) $53,624
-------
(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 October 31, 2004 - See
Note 2
! Affiliated company - See Note 5.
@ Valued by the T. Rowe Price Valuation Committee, established by the fund's
Board of Directors
AUD Australian dollar
EUR Euro
GDR Global Depository Receipts
GDS Global Depository Shares
HKD Hong Kong dollar
REIT Real Estate Investment Trust
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
October 31, 2004
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
(Amounts in $000s except shares and per share amounts)
Assets
Investments in securities, at value
Affiliated companies (cost $1,288) $ 1,288
Other companies (cost $47,970) 52,336
Total investments in securities 53,624
Other assets 3,029
Total assets 56,653
Liabilities
Obligation to return securities lending collateral 3,967
Other liabilities 4,346
Total liabilities 8,313
NET ASSETS $ 48,340
------------
Net Assets Consist of:
Undistributed net investment income (loss) $ 630
Undistributed net realized gain (loss) (479)
Net unrealized gain (loss) 4,367
Paid-in-capital applicable to 4,972,493 shares of
$0.01 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 43,822
NET ASSETS $ 48,340
------------
NET ASSET VALUE PER SHARE $ 9.72
------------
The accompanying notes are an integral part of these financial statements.
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
($ 000s)
Year
Ended
10/31/04
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $80) $ 829
Securities lending 16
Total income 845
Investment management and administrative expense 171
Net investment income (loss) 674
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 57
Foreign currency transactions (15)
Net realized gain (loss) 42
Change in net unrealized gain (loss)
Securities 4,063
Other assets and liabilities
denominated in foreign currencies (1)
Change in net unrealized gain (loss) 4,062
Net realized and unrealized gain (loss) 4,104
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 4,778
-----------
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
($ 000s)
Year
Ended
10/31/04 10/31/03
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 674 $ 306
Net realized gain (loss) 42 (79)
Change in net unrealized gain (loss) 4,062 3,692
Increase (decrease) in net assets from operations 4,778 3,919
Distributions to shareholders
Net investment income (338) (174)
Net realized gain (26) -
Decrease in net assets from distributions (364) (174)
Capital share transactions *
Shares sold 28,624 7,951
Distributions reinvested 310 133
Shares redeemed (5,635) (3,239)
Redemption fees 5 1
Increase (decrease) in net assets from capital
share transactions 23,304 4,846
Net Assets
Increase (decrease) during period 27,718 8,591
Beginning of period 20,622 12,031
End of period $ 48,340 $ 20,622
--------- ----------
(Including undistributed net investment income of
$630 at 10/31/04 and $294 at 10/31/03)
*Share information
Shares sold 3,090 1,104
Distributions reinvested 36 20
Shares redeemed (616) (462)
Increase (decrease) in shares outstanding 2,510 662
The accompanying notes are an integral part of these financial statements.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
October 31, 2004
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Index Fund, Inc. (the corporation) is registered
under the Investment Company Act of 1940 (the 1940 Act). The International
Equity Index Fund, a diversified, open-end management investment company is one
portfolio established by the Corporation. The fund 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, for certain markets, the official closing 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
bid and asked 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 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.
Redemption Fees
A 2% fee is assessed on redemptions of fund shares held less than 90 days to
deter short-term trading and protect the interests of long-term shareholders.
Redemption fees are withheld from proceeds that shareholders receive from the
sale or exchange of fund shares. The fees are paid to the fund, and have the
primary effect of increasing paid-in capital. The fees may cause the redemption
price per share to differ from the net asset value per share.
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 October 31, 2004, the value of loaned
securities was $3,767,000; aggregate collateral consisted of $3,967,000 in the
money market pooled account.
Other
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $43,590,000 and $19,918,000, respectively, for the year ended October
31, 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 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, 2004 totaled $364,000 and were
characterized as ordinary income for tax purposes. At October 31, 2004, the
tax-basis components of net assets were as follows:
- --------------------------------------------------------------------------------
Unrealized appreciation $ 5,985,000
Unrealized depreciation (1,679,000)
Net unrealized appreciation (depreciation) 4,306,000
Undistributed ordinary income 661,000
Capital loss carryforwards (449,000)
Paid-in capital 43,822,000
Net assets $ 48,340,000
------------------
Federal income tax regulations require the fund to treat the gain/loss on
passive foreign investment companies as realized on the last day of the tax
year; accordingly, $61,000 of unrealized gains reflected in the accompanying
financial statements were realized for tax purposes as of October 31, 2004.
The fund intends to retain realized gains to the extent of available capital
loss carryforwards for federal income tax purposes. During the fiscal year ended
October 31, 2004, the fund utilized $45,000 of capital loss carryforwards. As
of October 31, 2004, the fund had $80,000 of capital loss carryforwards that
expire in fiscal 2009, $285,000 that expire in fiscal 2010, and $84,000 that
expire in fiscal 2011.
At October 31, 2004, the cost of investments for federal income tax purposes was
$49,319,000.
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. At October 31, 2004, $36,000 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 and
affiliates of the fund. 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 year
ended October 31, 2004, dividend income from the Reserve Funds totaled $2,000,
and the value of shares of the Reserve Funds held at October 31, 2004 and
October 31, 2003 was $1,288,000 and $66,000, respectively.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
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 assets and liabilities, including
the portfolio of investments, 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, 2004, 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 the
auditing standards of the Public Company Accounting Oversight Board (United
States). Those standards 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, 2004 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 22, 2004
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 10/31/04
- --------------------------------------------------------------------------------
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 $26,000 from short-term
capital gains.
For taxable non-corporate shareholders, $650,000 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 $743,000 and foreign taxes
paid of $55,000.
INFORMATION ON PROXY VOTING POLICIES, PROCEDURES, AND RECORDS
- --------------------------------------------------------------------------------
A description of the policies and procedures used by T. Rowe Price funds and
portfolios to determine how to vote proxies relating to portfolio securities is
available in each fund's Statement of Additional Information, which you may
request by calling 1-800-225-5132 or by accessing the SEC's Web site,
www.sec.gov. The description of our proxy voting policies and procedures is also
available on our Web site, www.troweprice.com. To access it, click on the words
"Company Info" at the top of our homepage for individual investors. Then, in
the window that appears, click on the "Proxy Voting Policy" navigation button in
the top left corner.
Each fund's most recent annual proxy voting record is available on our Web site
and through the SEC's Web site. To access it through our Web site, follow the
directions above, then click on the words "Proxy Voting Record" at the bottom
of the Proxy Voting Policy page.
HOW TO OBTAIN QUARTERLY PORTFOLIO HOLDINGS
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The fund files a complete schedule of portfolio holdings with the Securities and
Exchange Commission for the first and third quarters of each fiscal year on Form
N-Q. The fund's Form N-Q is available electronically on the SEC's Web site
(www.sec.gov); hard copies may be reviewed and copied at the SEC's Public
Reference Room, 450 Fifth St. N.W., Washington, DC 20549. For more information
on the Public Reference Room, call 1-800-SEC-0330.
T. Rowe Price International Equity Index Fund
- --------------------------------------------------------------------------------
ABOUT THE FUND'S DIRECTORS AND OFFICERS
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Your fund is governed by a Board of Directors that meets regularly to review
investments, performance, compliance matters, advisory fees and expenses, and
other business affairs, 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
(Year of Birth) Principal Occupation(s) During Past 5 Years
Year Elected * and Directorships of Other Public Companies
Anthony W. Deering Director, Chairman of the Board, and Chief
(1945) Executive Officer, The Rouse Company, real estate
2000 developers; Director, Mercantile Bank
(4/03 to present)
Donald W. Dick, Jr. Principal, EuroCapital Advisors, LLC, an
(1943) acquisition and management advisory firm
2000
David K. Fagin Director, Golden Star Resources Ltd., Canyon
(1938) Resources Corp. (5/00 to present), and Pacific
2001 Rim Mining Corp. (2/02 to present); Chairman and
President, Nye Corporation
Karen N. Horn Managing Director and President, Global Private
(1943) Client Services, Marsh, Inc. (1999-2003);
2003 Managing Director and Head of International
Private Banking, Bankers Trust (1996-1999)
F. Pierce Linaweaver President, F. Pierce Linaweaver & Associates,
(1934) Inc., consulting environmental and civil engineers
2001
John G. Schreiber Owner/President, Centaur Capital Partners, Inc.,
(1946) a real estate investment company; Partner,
2001 Blackstone Real Estate Advisors, L.P.
*Each independent director oversees 111 T. Rowe Price portfolios and serves
until retirement, resignation, or election of a successor.
INSIDE DIRECTORS
Name
(Year of Birth)
Year Elected *
[Number of T. Rowe Price Principal Occupation(s) During Past 5 Years
Portfolios Overseen] and Directorships of Other Public Companies
James S. Riepe Director and Vice President, T. Rowe Price;
(1943) Vice Chairman of the Board, Director, and
2002 Vice President, T. Rowe Price Group, Inc.;
[111] Chairman of the Board and Director, T. Rowe
Price Global Asset Management Limited, T.
Rowe Price Global Investment Services
Limited, T. Rowe Price Investment Services,
Inc., 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
*Each inside director serves until retirement, resignation, or election of a
successor.
OFFICERS
Name (Year of Birth)
Title and Fund(s) Served Principal Occupation(s)
Regina M. Aldave (1971) Assistant Vice President, T. Rowe
Vice President, International Index Fund Price
E. Frederick Bair, CPA, CFA (1969) Vice President, T. Rowe Price and
Vice President, International Index Fund T. Rowe Price Trust Company
Stephen V. Booth, CPA (1961) Vice President, T. Rowe Price, T.
Vice President, International Index Fund Rowe Price Group, Inc., and T. Rowe
Price Trust Company
Joseph A. Carrier (1960) Vice President, T. Rowe Price, T.
Treasurer, International Index Fund Rowe Price Group, Inc., T. Rowe
Price Investment Services, Inc.,
and T. Rowe Price Trust Company
Stephanie C. Clancy (1964) Vice President, T. Rowe Price and
Vice President, International Index Fund T. Rowe Price Group, Inc.
Wendy R. Diffenbaugh (1953) Vice President, T. Rowe Price
Assistant Vice President,
International Index Fund
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
Roger L. Fiery III, CPA (1959) Vice President, T. Rowe Price, T.
Vice President, International Index Fund Rowe Price Group, Inc., T. Rowe
Price International, Inc., and T.
Rowe Price Trust Company
Gregory S. Golczewski (1966) Vice President, T. Rowe Price
Vice President, International Index Fund and T. Rowe Price Trust Company
Henry H. Hopkins (1942) Director and Vice President, T.
Vice President, International Index Fund Rowe Price Investment Services,
Inc., T. Rowe Price Services, Inc.,
and T. Rowe Price Trust Company;
Vice President, T. Rowe Price, T.
Rowe Price Group, Inc., T. Rowe
Price International, Inc., and T.
Rowe Price Retirement Plan
Services, Inc.
Patricia B. Lippert (1953) Assistant Vice President, T. Rowe
Secretary, International Index Fund Price and T. Rowe Price Investment
Services, Inc.
Neil Smith (1972) Vice President, T. Rowe Price
Vice President, International Index Fund International, Inc.
Ken D. Uematsu, CFA (1966) Employee, T. Rowe Price
Assistant Vice President,
International Index Fund
Julie L. Waples (1970) Vice President, T. Rowe Price
Vice President, International Index Fund
Richard T. Whitney, CFA (1958) Vice President, T. Rowe Price, T.
President, International Index Fund Rowe Price Group, Inc., T. Rowe
Price International, Inc., and T.
Rowe Price Trust Company
Mary C. Wojciechowski, CFA (1962) Vice President, T. Rowe Price and
Vice President, International Index Fund 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.
The registrant has 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.
(a) - (d) Aggregate fees billed to the registrant for the last two fiscal years
for professional services rendered by the registrant's principal accountant were
as follows:
2004 2003
Audit Fees $10,003 $9,551
Audit-Related Fees 965 672
Tax Fees 2,753 2,510
All Other Fees 124 --
Audit fees include amounts related to the audit of the registrant's annual
financial statements and services normally provided by the accountant in
connection with statutory and regulatory filings. Audit-related fees include
amounts reasonably related to the performance of the audit of the registrant's
financial statements, specifically the issuance of a report on internal
controls. Tax fees include amounts related to tax compliance, tax planning, and
tax advice. Other fees include the registrant's pro-rata share of amounts for
agreed-upon procedures in conjunction with service contract approvals by the
registrant's Board of Directors/Trustees.
(e)(1) The registrant's audit committee has adopted a policy whereby audit and
non-audit services performed by the registrant's principal accountant for the
registrant, its investment adviser, and any entity controlling, controlled by,
or under common control with the investment adviser that provides ongoing
services to the registrant require pre-approval in advance at regularly
scheduled audit committee meetings. If such a service is required between
regularly scheduled audit committee meetings, pre-approval may be authorized by
one audit committee member with ratification at the next scheduled audit
committee meeting. Waiver of pre-approval for audit or non-audit services
requiring fees of a de minimis amount is not permitted.
(2) No services included in (b) - (d) above were approved pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Less than 50 percent of the hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most recent
fiscal year were attributed to work performed by persons other than the
principal accountant's full-time, permanent employees.
(g) The aggregate fees billed for the most recent fiscal year and the preceding
fiscal year by the registrant's principal accountant for non-audit services
rendered to the registrant, its investment adviser, and any entity controlling,
controlled by, or under common control with the investment adviser that provides
ongoing services to the registrant were $849,000 and $819,000, respectively, and
were less than the aggregate fees billed for those same periods by the
registrant's principal accountant for audit services rendered to the T. Rowe
Price Funds.
(h) All non-audit services rendered in (g) above were pre-approved by the
registrant's audit committee. Accordingly, these services were considered by the
registrant's audit committee in maintaining the principal accountant's
independence.
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. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. 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 change in the registrant's internal control over financial
reporting that occurred during the registrant's second fiscal quarter covered by
this report that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is
attached.
(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 Index Fund, Inc.
By /s/ James S. Riepe
-----------------------------------
James S. Riepe
Principal Executive Officer
Date December 17, 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 December 17, 2004
By /s/ Joseph A. Carrier
-----------------------------------
Joseph A. Carrier
Principal Financial Officer
Date December 17, 2004