International Funds: Q2

These are the top-performing international mutual funds of the 2nd
quarter:
1. T. Rowe Price Latin America Fund (PRLAX) , which gained 12%.
2. Scudder Latin America Fund (SLANX), Gain 10.7%
2. Eaton Vance Greater India Fund (ETGIX) , Gain 10.7%
3. T. Rowe Price International Emerging Europe Fund (TREMX) ,
Gain 10.6%

Latin America performed quite well during this quarter. The average
Latin American fund gained 10% in the period. Continued upbeat
corporate earnings, notably from Brazil, and a weaker dollar versus Latin
American currencies helped the funds to boost over the past 3 months.
However, there is caution on Latin America, though, as most countries
are facing major elections next year and many fund managers have
started taking profits now.

The average emerging market portfolio has only about 7% of assets
dedicated to India' stocks, which have been hitting new records due to
upbeat corporate results and inflows of foreign funds. In addition, the
quarterly gross domestic product surged a higher-than-expected 7% in
the 1st quarter. Some analysts are expecting that level of overall growth
for both 2005 and '06. That compares to 2006 growth expectations of
8% for China. Indian companies have better corporate governance and
liquidity than China stocks. The Indian market is one of the more richly
valued markets. Corporate earnings in most Indian companies have been
consistently turning in impressive results.

Among developing countries, Russia has been attracting buyers in the
past few months for its relative stability. Investors are slowly gaining
confidence again in Russia markets.