THE MSCI EAFE outperformed the PIPER median international equity funds for the quarter and year ended Dec. 31. Of the 195 accounts, the median international equity account returned 17.5% for the quarter and 16.6% for the year, compared with the index returns of 20.7% for the quarter and 20.3% for the year. Japanese equity led returns for the quarter, with a median return of 26.2%, while the median European equity account returned only 17.8%. European equity topped returns for the year ended Dec. 31, with the median account returning 27.4%. The Pacific Basin excluding Japan median account fared the worst for the year, falling to negative 7.4%. In 1997, however, the median manager for this category fell to negative 34.6%.