<PAGE>
FELLOW SHAREHOLDERS
Asian stock markets led world equity markets down in the quarter ending April
1994. The accelerating, near-vertical rise in the fourth quarter of 1993
terminated with declines of 20% to 30% from the previous highs. As of April 30,
however, most markets were still above their levels when the buying madness took
hold last October. We believe momentum investors have now been shaken out of
Asia. Fundamental investors are returning, attracted by continued high earnings
growth and valuations which are again more reasonable.
PERFORMANCE COMPARISON
<TABLE>
<CAPTION>
Periods Ended 4/30/94
3 Months 6 Months
---------------------
<S> <C> <C>
New Asia Fund -11.4% -3.3%
MSCI Pacific Ex-Japan -11.0 1.4
</TABLE>
--------------------------------------------------------------------------------
MARKET REVIEW AND STRATEGY
THAILAND'S stock market fell 14% over the quarter but remained substantially
higher than when its rally began at the end of September. Economic developments
have been largely favorable. Export figures have picked up from the first half
of 1993, and the current account deficit is now significantly smaller than
previously expected. We took advantage of market weakness to add to SIAM
CEMENT, after having reduced the stock's weighting in the fourth quarter of last
year.
The MALAYSIAN market, a leader in the previous quarter, fell 2%. In
contrast to other governments, the Malaysian government authorities had taken an
active role in deflating the 1993 mini-bubble. Early in January, the current
and former finance ministers both warned against excessive speculation, stating
by way of example that they had sold most of their personal stockholdings and
that anyone who was still very active in the market was a fool! In a dramatic
policy move, the bank reserve requirement was raised to drain liquidity from the
system, measures were taken to freeze foreign inflows, and brokers faced
stricter limits on individual trading. The authorities' purpose was to prevent
speculation from getting out of hand and diverting corporate and individual
resources from the more important task of nation-building. The latter will
continue quite aggressively in 1994, with GDP growth expected again to top 8%
with relatively little inflation. However, the Malaysian recovery is well
advanced. Labour shortages are worsening, and last year's record trade surplus
is eroding. More worrisome are the huge financings planned by companies to pay
for ambitious infrastructure projects. This extra supply of equity, estimated
at three times last year's level, could cap the market's upside potential.
HONG KONG suffered less from official intervention than from a reversal of
foreign buying, primarily by American and Japanese investors. Last quarter's
euphoria turned to profit-taking and renewed awareness of Hong Kong's risks.
China's economy is definitely overheating. Dissident arrests have more to do
with forestalling another Tiananmen Square economic protest than with thumbing
Beijing's nose at the U.S. The U.S. will most likely renew China's most favored
nation trade status, but with some conditions and after greater debate than
GEOGRAPHICAL DIVERSIFICATION
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Malaysia 24.7%
New Zealand 6.1%
Singapore 1.2%
Thailand 7.3%
All Others 15.1%
Australia 12.2%
Hong Kong 22.6%
</TABLE>
<PAGE>
last year. Meanwhile, Hong Kong's democracy talks between China and the UK have
completely broken down, causing China to delay approval for the two major
infrastructure projects critical to Hong Kong's long-term growth -- the new
airport and the new container terminal. Finally, Hong Kong authorities have
awakened to the territory's property bubble, promising measures by mid-summer to
deflate it gradually. Investors remember Japan's property bubble and worry that
this one will end similarly.
Of the various risks, only Chinese economic overheating truly worries us.
A hard landing for that economy seems increasingly likely and would undoubtedly
keep further foreign buying of Hong Kong stocks at bay for 1994.
The PHILIPPINE and INDONESIAN markets also suffered from foreign profit-
taking. In Indonesia, the economy remains on a stable growth track although
concerns are emerging over a slowing of exports. We regard market weakness as a
buying opportunity and will be looking to add investments over the second
quarter. The Philippine economy is benefiting from a major improvement in the
electricity shortfall problem, which plagued the economy in 1993. The market
nervously awaits IMF approval of a three-year extended loan, which would improve
confidence considerably.
SINGAPORE stocks fell only a little, around 1%, but also rose less
dramatically last November and December. During the quarter, we cut our
holdings in the interest-sensitive banking sector, which had been our major
sector exposure, as rising rates and lower stockbroking profits may lead to
disappointing performance. The proceeds have been redeployed into commercial
property and hotels as Singapore is finally realising its promise as a regional
business center, midway between the emerging colossi of China and India. With
commercial rents only 20% of those in Hong Kong, we foresee a steady
convergence. Our overall weighting in Singapore has fallen, however, as we can
find better values elsewhere.
Our weightings in KOREA remained steady. While the fundamentals look
better than at any time since the mid-1980s, restrictions on foreign investment
continue to make it difficult to increase our position.
We have been using profits from the markets just reviewed to increase our
weightings in AUSTRALIA and NEW ZEALAND, whose markets did not run up to
speculative peaks last year. Both economies are just starting to recover,
inflation rates are still falling, and, if the U.S. recovery is joined next year
by Europe and Asia, both should benefit from higher commodity prices.
Although results were negative, the AUSTRALIAN stock market was
encouragingly resilient considering the hammering taken by its bond market,
where long bond yields rose to over 8% during the quarter from a low of 6.4% in
February. We are increasingly enthusiastic about economic developments in
Australia and are forecasting a period of sustainable, low-inflation growth.
Renewed interest in commodities is providing good support for the currency.
Exports of manufactured goods are picking up, which will provide support for the
current account and thereby remove the main constraint on growth. We added ANZ
BANK, which is highly sensitive to the economic recovery.
Economic fundamentals in NEW ZEALAND go from strength to strength. Growth
forecasts were upgraded again during the quarter, inflation remained negligible,
and fiscal balance forecasts were substantially improved. As icing on the cake,
New Zealand as an agricultural exporter stands to gain more than virtually any
other nation from the recent GATT agreement.
INVESTMENT OUTLOOK
For the rest of 1994, Asian equity prices will be in a tug-of-war between
earnings growth and higher U.S. interest rates. Moreover, when stock prices do
recover, upside is likely to be limited by a large supply of new stock offerings
from government privatisations and corporations. Do not expect last year's 70+%
returns to be repeated. Nevertheless, we feel confident that Asian stocks
should outperform U.S. equities, which will be struggling with the same
valuation tug-of-war but with less dynamic and sustainable earnings growth than
in Asia.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
President
May 19, 1994
2
<PAGE>
TWENTY-FIVE LARGEST HOLDINGS
April 30, 1994
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
United Overseas Bank, Singapore 2.4%
Jurong Shipyard, Singapore 1.8
Aokam Perdana, Malaysia 1.8
Swire Pacific `A', Hong Kong 1.7
Technology Resources Industries, Malaysia 1.7
Sembawang Shipyard, Singapore 1.6
Bangkok Bank, Thailand 1.6
Keppel, Singapore 1.6
United Engineers, Malaysia 1.6
Carter Holt Harvey, New Zealand 1.5
Siam Cement, Thailand 1.4
Westmont, Malaysia 1.4
Fletcher Challenge, New Zealand 1.4
Western Mining, Australia 1.4
Hutchison Whampoa, Hong Kong 1.4
Hong Kong Telecommunications, Hong Kong 1.3
Mayne Nickless, Australia 1.3
Guoco Group, Hong Kong 1.3
Hong Kong Land Holdings, Hong Kong 1.2
Golden Plus Holdings, Malaysia 1.2
Air New Zealand'B', New Zealand 1.2
Granite Industries, Malaysia 1.1
Malaysian Helicopter, Malaysia 1.1
Wharf Holdings, Hong Kong 1.1
Land & General Berhad, Malaysia 1.1
--------------------------------------------------------------------
TOTAL 36.2%
====================================================================
</TABLE>
INDUSTRY DIVERSIFICATION
April 30, 1994
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Real Estate 16.3%
Banking 14.2
Transport & Storage 6.8
Multi-Industry 6.2
Machinery & Engineering 6.0
Forestry & Paper Products 5.3
Building Materials & Construction 4.7
Media 4.6
Metals 3.7
Textile 3.2
Financial Services 3.1
Business & Public Services 2.6
Food & Household Products 2.4
Entertainment/Leisure 2.3
Merchandising 2.0
Telecommunications 1.4
Electrical & Electronics 1.1
Other Industries 5.5
Short-Term Investments 8.3
Other Assets Less Liabilities 0.3
--------------------------------------------------------------------
NET ASSETS 100.0%
====================================================================
</TABLE>
SECURITY CLASSIFICATION
April 30, 1994
<TABLE>
<CAPTION>
Cost Market Value
Percent of Net Assets (000) (000)
----------------------------------------- ---------- ------------
<S> <C> <C>
Common Stocks, Rights & Warrants, 89.9% $1,690,402 $1,756,054
Bonds, 1.5% 29,355 29,488
Short-Term Investments, 8.3% 163,143 163,143
---------- ----------
Total Investments, 99.7% 1,882,900 1,948,685
Other Assets Less Liabilities, 0.3% 5,432 5,412
-----------------------------------------------------------------------------
NET ASSETS, 100.0% $1,888,332 $1,954,097
=============================================================================
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS (VALUE IN THOUSANDS)
T. ROWE PRICE NEW ASIA FUND / APRIL 30, 1994 (UNAUDITED)
AUSTRALIA -- 12.2%
<TABLE>
<CAPTION>
Value
--------
COMMON STOCKS
<C> <S> <C>
10,398,474 shs. ANI..............................................$ 15,671
415,200 Ampolex.......................................... 1,305
4,568,000 Australia & New Zealand Bank Group............... 15,367
1,507,097 Broken Hill Property............................. 18,300
15,828 CSR.............................................. 54
342,125 Coca Cola Amatil................................. 2,077
1,679,200 Commonwealth Bank of Australia................... 9,859
2,407,438 Email............................................ 8,529
6,016,900 John Fairfax Holdings............................ 11,775
4,742,390 MIM.............................................. 9,789
4,169,954 Mayne Nickless................................... 24,721
1,956,643 National Australia Bank.......................... 16,603
2,357,366 News Corporation................................. 16,299
4,551,450 Nine Network..................................... 17,230
2,675,218 Philip Burns..................................... 7,643
12,987,400 TNT.............................................. 19,851
5,318,949 Western Mining................................... 26,593
7,175,052 Woolworths....................................... 15,938
Total Australia 237,604
</TABLE>
HONG KONG -- 22.6%
<TABLE>
<CAPTION>
COMMON STOCKS & WARRANTS
<C> <S> <C>
12,405,200 Amoy Properties.................................. 16,381
6,007,220 wts. *Amoy Properties, 3/31/95......................... 2,858
36,069,000 shs. +Applied International Holdings................... 11,674
2,266,000 B & B Asia....................................... 807
1,852,000 Champion Technology.............................. 689
3,971,000 China Light & Power.............................. 20,692
7,850,000 China Strategic Investment....................... 4,167
1,034,000 wts. *China Strategic Investment, 8/30/97.............. 482
4,409,000 shs. Citic Pacific.................................... 12,272
3,721,000 wts. *Citic Telecommunications, 2/10/95................ 4,673
584,293 shs. *Consolidated Electric Power Asia................. 870
6,723,260 *Dao Heng Bank Group.............................. 20,367
16,672,000 +Fairyoung Holdings............................... 7,878
5,171,000 Giordano Holdings................................ 2,326
31,611,000 Great Eagle Holdings............................. 18,620
8,256,000 wts. *Guangdong Investment, 12/31/94................... 3,153
5,308,000 shs. Guoco Group...................................... 24,566
17,999,000 Hon Kwok Land Investment......................... 7,107
8,000,000 Hong Kong China.................................. 3,936
8,467,000 Hong Kong Land Holdings.......................... 23,786
13,576,000 Hong Kong Telecommunications..................... 26,011
22,638,000 Hopewell Holdings................................ 20,222
6,449,000 Hutchison Whampoa................................ 26,507
6,275,000 Hysan Development................................ 18,359
4,920,000 JCG Holdings..................................... 3,137
3,530,000 Lai Sun Garment International.................... 6,626
21,381,881 Luks Industries.................................. 4,623
3,036,776 wts. *Luks Industries, 6/30/96......................... 169
32,296,000 shs. Manhattan Card Company........................... 11,602
15,800,000 Ming Pao Enterprise.............................. 11,045
6,698,000 wts. *National Mutual Asia, 3/31/95.................... 1,387
4,704,546 shs. New World Development............................ 14,434
13,524,000 *Paliburg Development............................. 2,031
15,950,098 Paliburg International........................... 12,699
2,935,000 Pioneer Industries International................. 1,681
17,100,000 S. Megga International........................... 4,981
1,000,000 wts. *S. Megga International, 12/29/96................. 177
4,678,891 shs. Sing Tao Holdings................................ 6,421
18,207,090 South Sea Development............................ 1,626
9,110,000 Swank International Manufacturing................ 2,347
2,518,000 wts. *Swank International Manufacturing, 6/30/95....... 209
4,755,000 shs. Swire Pacific `A'................................ 34,164
8,603,730 Tai Cheung Holdings.............................. 12,363
12,688,000 Techtronic Industries............................ 2,250
5,375,000 Tian An China Investment......................... 1,287
1,125,000 wts. *Tian An China Investment, 1/25/96................ 67
407,000 *Tomei International, 5/31/94..................... 1
609,000 *Tomei International, 6/30/95..................... 16
3,000,000 shs. *Ultronics International Holdings................. 796
5,660,000 Wharf Holdings................................... 21,835
900,000 Wing Hang Bank................................... 2,086
4,900,000 *Yizheng Chemical Fibre........................... 1,522
Total Hong Kong 439,985
</TABLE>
INDIA -- 0.2%
<TABLE>
<C> <S> <C>
COMMON STOCK
203,000 Reliance Industries GDS (USD).................... 3,603
</TABLE>
4
<PAGE>
INDONESIA -- 2.7%
<TABLE>
<CAPTION>
COMMON STOCKS
<C> <S> <C>
475,000 shs. Astra International..............................$ 3,612
3,460,000 *Bank Dagang Nasional Indonesia................... 5,054
3,200,000 Dharmala International........................... 5,565
818,500 Duta Anggada Realty.............................. 1,831
149,600 Gadjah Tunggal (L)............................... 241
1,355,000 Indorama Synthetics.............................. 3,959
921,000 Inti Indorayon Utama............................. 2,349
411,000 Modernland Realty................................ 1,334
3,561,000 Panin Bank....................................... 5,449
1,548,500 Semen Cibinong................................... 8,617
874,000 United Tractors.................................. 1,945
39,956
CORPORATE BOND
12,900,000 USD Indofood, Cv., 3.50%, 6/4/97..................... 12,835
Total Indonesia 52,791
</TABLE>
MALAYSIA -- 24.7%
<TABLE>
<CAPTION>
COMMON STOCKS, RIGHTS & WARRANTS
<C> <S> <C>
7,204,000 shs. Affin Holdings................................... 11,778
3,150,000 Aokam Perdana.................................... 30,571
427,000 wts. *Aokam Perdana, 4/16/97........................... 3,730
4,390,000 shs. Arab Malaysian Finance........................... 16,223
2,200,000 Berjaya Group.................................... 2,373
900,000 Berjaya Industrial............................... 840
15,500,000 Berjaya Leisure.................................. 17,473
6,521,250 rts. *Berjaya Leisure.................................. 2,422
9,000,666 shs. Berjaya Sports Toto.............................. 16,127
2,054,000 Berjaya Sports Toto, loan stock.................. 2,990
2,000,000 +CHG Industries................................... 6,607
4,000,000 Commerce Asset Holdings.......................... 14,184
1,333,333 wts. *Commerce Asset Holdings, 6/27/98................. 1,782
5,285,000 shs. Development & Commercial Bank.................... 11,146
2,000,000 Dunlop Estates................................... 5,972
5,000,000 Faber Group...................................... 6,868
3,584,000 Golden Plus Holdings............................. 16,455
1,457,666 Golden Plus Holdings, new........................ 6,665
8,115,000 +Granite Industries............................... 21,961
1,806,000 Hong Leong Properties............................ 2,535
9,985,000 *KL Industries Holdings........................... 15,729
2,343,400 Kelanamas........................................ 5,205
1,163,200 wts. *Kelanamas, 2/7/99................................ 1,138
6,135,000 shs. Land & General Berhad............................ 20,839
19,848,000 MBF Capital...................................... 20,152
6,201,000 Magnum........................................... 14,582
4,637,000 Malaysian Helicopter............................. 20,424
3,878,000 Metacorp......................................... 18,673
18,000 shs. Multi-Purpose Holding............................ 31
6,000,000 Mycom............................................$ 13,998
5,000,000 Olympia Industries............................... 6,868
1,985,000 Perusahaan Sadur................................. 5,335
6,015,000 Public Bank...................................... 12,237
1,000,000 Public Finance Berhad............................ 1,568
14,908,000 Renong........................................... 20,256
1,700,000 Resorts World.................................... 9,518
1,700,000 Southern Bank.................................... 4,283
7,861,000 Technology Resources Industries.................. 33,744
6,946,000 United Engineers................................. 30,335
3,973,000 rts. *United Engineers................................. 82
3,633,000 shs. Westmont......................................... 27,122
480,821
CORPORATE BOND
6,521,250 MYR Berjaya Leisure, 5.00%, 3/22/99.................. 1,960
Total Malaysia 482,781
</TABLE>
NEW ZEALAND -- 6.1%
<TABLE>
<CAPTION>
COMMON STOCKS & RIGHTS
<C> <S> <C>
7,959,484 shs. +Air New Zealand `B'.............................. 22,518
826,673 Brierley Investments............................. 625
13,441,322 Carter Holt Harvey............................... 28,636
2,243,200 Fernz............................................ 10,167
224,320 rts. *Fernz............................................ 558
3,516,786 shs. Fisher & Paykel.................................. 8,934
11,084,300 Fletcher Challenge............................... 21,566
3,499,075 Fletcher Challenge, Forests Division............. 5,050
1,572,050 Independent Newspapers........................... 5,128
6,701,500 +Shortland Properties............................. 3,947
2,167,062 Wilson & Horton.................................. 10,822
117,951
CORPORATE BOND
3,721,666 NZD Shortland Properties, 7.50%, 12/31/98............ 2,149
Total New Zealand 120,100
</TABLE>
PHILIPPINES -- 1.0%
<TABLE>
<CAPTION>
COMMON STOCKS
<C> <S> <C>
17,113,500 shs. *JG Summit Holdings............................... 6,836
50,000 *JG Summit Holdings GDS (USD)..................... 1,875
69,220 Philippine Long Distance Telephone............... 4,349
90,000 Philippine Long Distance Telephone (USD)......... 5,839
Total Philippines 18,899
</TABLE>
5
<PAGE>
T. Rowe Price New Asia Fund/Portfolio of Investments
SINGAPORE -- 12.0%
<TABLE>
<CAPTION>
COMMON STOCKS & WARRANTS
<C> <S> <C>
500,000 shs. Causeway Investment..............................$ 830
500,000 wts. *Causeway Investment, 10/20/94.................... 582
2,854,000 shs. DBS Land......................................... 8,773
2,866,000 Far East Levingston Shipbuilding................. 12,072
4,350,000 GK Goh Holdings.................................. 6,014
2,400,000 Intraco.......................................... 3,859
3,678,000 Jurong Shipyard.................................. 35,243
4,331,000 Keppel........................................... 31,751
133,000 Keppel, loan stock............................... 146
2,000,000 Neptune Orient Lines............................. 2,920
714,000 Overseas Union Enterprises....................... 3,444
7,650,000 Pacific Carriers................................. 7,921
1,321,000 Sembawang Maritime, loan stock................... 1,954
4,000,000 Sembawang Shipyard............................... 32,154
1,092,300 Singapore Press.................................. 17,912
2,578,000 Tiger Balm....................................... 3,896
5,081,500 United Overseas Bank............................. 44,116
143,000 wts. *United Overseas Bank, 11/23/94................... 680
680,968 *United Overseas Bank, 6/17/97.................... 2,781
10,450,000 shs. Wing Tai Holdings................................ 18,010
Total Singapore 235,058
</TABLE>
SOUTH KOREA -- 1.9%
<TABLE>
<C> <S> <C>
COMMON STOCKS
390,999 Daewoo........................................... 7,721
440,000 Korea Electric Power............................. 15,253
80 *Korea Growth Trust IDR (USD)..................... 2,920
120,000 Kun Young Construction........................... 2,095
71,400 Pohang Iron & Steel.............................. 7,194
53,637 Samsung Construction............................. 2,739
Total South Korea 37,922
</TABLE>
TAIWAN -- 0.7%
<TABLE>
<C> <S> <C>
COMMON STOCK
50,700 Taiwan Fund (USD)................................ 1,394
CORPORATE BONDS
4,720,000 USD Microtek International, Cv., 3.50%, 6/26/01...... 5,298
2,710,000 Sincere Navigation, Cv., 3.75%, 5/26/03.......... 2,819
3,800,000 Tung Ho Steel, Cv., 4.00%, 7/26/01............... 4,427
12,544
Total Taiwan 13,938
</TABLE>
THAILAND -- 7.3%
<TABLE>
<C> <S> <C>
COMMON STOCKS
439,600 shs. Advanced Information Service.....................$ 16,341
4,240,400 Bangkok Bank..................................... 31,997
1,752,000 Bangkok Land..................................... 6,262
2,481,100 Bank of Ayudhya.................................. 7,439
296,000 Land & House..................................... 6,748
71,000 Loxley........................................... 1,404
345,000 Loxley (L)....................................... 6,823
2,500,000 NTS Steel Group.................................. 6,950
75,000 Robinson Department Stores....................... 118
644,200 Siam Cement...................................... 28,040
1,576,800 Siam Commercial Bank............................. 9,832
3,388,720 Thai Farmers Bank................................ 17,495
1,210,000 Thai Military Bank............................... 3,412
Total Thailand 142,861
</TABLE>
SHORT-TERM INVESTMENTS -- 8.3%
<TABLE>
<C> <S> <C>
COMMERCIAL PAPER
$6,900,000 Asset Securitization Cooperative, 3.95%, 6/15/94. 6,858
13,850,000 BMW US Capital, 3.85%, 5/24/94................... 13,798
13,500,000 CS First Boston Group, 3.625%, 5/2/94............ 13,476
30,000,000 Caisse des Depots, 3.63 - 3.637%, 5/11 - 5/18/94. 29,912
2,000,000 Finnish Export Credit, 3.65%, 5/16/94............ 1,994
139,000 Harvard University, 3.55%, 5/2/94................ 139
10,000,000 Hoechst, 3.82%, 5/25/94.......................... 9,971
9,000,000 New South Wales Treasury, 3.67%, 5/23/94......... 8,962
5,000,000 Nynex, 3.75%, 5/19/94............................ 4,974
10,000,000 Panasonic Finance, 3.64%, 5/11/94................ 9,971
10,780,000 Preferred Receivables Funding, 3.65 - 3.70%,
5/9 - 5/16/94.................................. 10,741
15,000,000 Prudential Funding, 3.58%, 5/2/94................ 14,996
7,465,000 RTZ America, 3.65%, 5/13/94...................... 7,441
10,000,000 SBNSW, 3.65%, 5/25/94............................ 9,956
10,000,000 Treasury Corporation of Victoria, 3.65%, 5/27/94. 9,956
153,145
</TABLE>
6
<PAGE>
<TABLE>
<C> <S> <C>
OTHER
$10,000,000 Corporate Asset Funding, Floating Rate
Medium-Term Notes, 3.72%, 12/12/94...............$ 9,998
Total Short-Term Investments 163,143
==============================================================================
Total Investments in Securities -- 99.7%
of Net Assets (Cost-$1,882,900) $1,948,685
==============================================================================
</TABLE>
* Non-income producing
+ Affiliated company
(MYR) Malaysian ringgit denominated
(NZD) New Zealand dollar denominated
(USD) U.S. dollar denominated
(L) Local registered shares
STATEMENT OF ASSETS AND LIABILITIES
T. Rowe Price New Asia Fund / April 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
Amounts in Thousands
-------------------------------
<S> <C> <C>
ASSETS
Investments in securities at value (Cost - $1,882,900)....................... $1,948,685
Other assets................................................................. 65,475
----------
Total assets.............................................................. $2,014,160
LIABILITIES
Payable for investment securities purchased.................................. 25,565
Other liabilities............................................................ 34,498
----------
Total liabilities......................................................... 60,063
----------
Net Assets Consisting of:
Accumulated net investment income - net of distributions........................ 3,311
Accumulated realized gains/losses - net of distributions........................ 187,254
Unrealized appreciation of investments.......................................... 65,765
Paid-in-capital applicable to 104,491,854 shares
of $0.01 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized........................... 1,697,767
----------
NET ASSETS...................................................................... $1,954,097
==========
NET ASSET VALUE PER SHARE....................................................... $18.70
======
==================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
STATEMENT OF OPERATIONS
T. Rowe Price New Asia Fund / Six Months Ended April 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
Amounts in Thousands
----------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends (net of foreign taxes of $1,750)........................... $ 15,265
Interest............................................................. 2,737
---------
Total income......................................................... $ 18,002
Expenses
Investment management fees........................................... 8,341
Shareholder servicing fees & expenses................................ 3,561
Custodian and accounting fees & expenses............................. 668
Registration fees & expenses......................................... 218
Prospectus & shareholder reports..................................... 168
Directors' fees & expenses........................................... 18
Legal & auditing fees................................................ 12
Proxy & annual meeting expenses...................................... 12
Miscellaneous expenses............................................... 11
---------
Total expenses....................................................... 13,009
---------
Net investment income................................................... 4,993
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss)
Securities........................................................... 193,224
Foreign currency transactions........................................ (1,111)
---------
Net realized gain....................................................... 192,113
Change in unrealized appreciation or depreciation
Securities........................................................... (308,332)
Other assets and liabilities denominated in
foreign currencies................................................ (24)
---------
Change in unrealized appreciation or depreciation....................... (308,356)
---------
Net loss on investments................................................. (116,243)
---------
DECREASE IN NET ASSETS FROM OPERATIONS.................................. $(111,250)
=========
=========================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
T. Rowe Price New Asia Fund (Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Ten Months Ended Year Ended
April 30, 1994 October 31, 1993* December 31, 1992
---------------- ----------------- -----------------
Amounts in Thousands
---------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income..................................... $ 4,993 $ 5,979 $ 3,240
Net realized gain on investments.......................... 192,113 32,534 5,830
Change in unrealized appreciation or depreciation of
investments.............................................. (308,356) 366,692 4,396
---------- ---------- --------
Increase (decrease) in net assets from operations......... (111,250) 405,205 13,466
---------- ---------- --------
Distributions to shareholders
Net investment income..................................... (6,625) -- (4,716)
Net realized gain on investments.......................... (35,966) -- (6,130)
Decrease in net assets from distributions to ---------- ---------- --------
shareholders............................................. (42,591) -- (10,846)
---------- ---------- --------
Capital share transactions
Sold 64,606, 65,534, and 21,532 shares.................... 1,315,621 1,033,146 276,494
Distributions reinvested of 1,929, 0, and 820 shares...... 40,413 -- 10,205
Redeemed 45,579, 6,793, and 6,266 shares.................. (898,546) (102,405) (79,353)
---------- ---------- --------
Increase in net assets from capital share transactions.... 457,488 930,741 207,346
---------- ---------- --------
Net equalization............................................. -- -- 1,616
---------- ---------- --------
Total increase............................................... 303,647 1,335,946 211,582
NET ASSETS
Beginning of period....................................... 1,650,450 314,504 102,922
---------- ---------- --------
End of period............................................. $1,954,097 $1,650,450 $314,504
========== ========== ========
===============================================================================================================================
</TABLE>
*The Fund's fiscal year-end was changed to October 31.
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
T. Rowe Price New Asia Fund / April 30, 1994 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the Corporation) is registered under
the Investment Company Act of 1940. The New Asia Fund (the Fund), a
diversified, open-end management investment company, is one of the portfolios
established by the Corporation.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange (including NASDAQ) are valued at the last quoted sales price at the
time the valuations are made. A security which 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. Other equity securities and those listed
securities that are not traded on a particular day are valued at a price within
the limits of the latest bid and asked prices deemed by the Board of Directors,
or by persons delegated by the Board, best to reflect fair value.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service. Short-
term debt securities are valued at their cost which, when combined with accrued
interest, approximates fair value.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONT'D)
For purposes of determining the Fund's net asset value per share, all
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at the mean of the bid and offer prices of such currencies
against U.S. dollars quoted by a major bank.
Assets and liabilities 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 or under the supervision of the officers of the
Fund, as authorized by the Board of Directors.
B) Affiliated Companies - Investments in companies 5% or more of whose
outstanding voting securities are held by the Fund are defined as "Affiliated
Companies" in Section 2(a)(3) of the Investment Company Act of 1940.
C) Currency translation - Foreign currency amounts are translated into U.S.
dollars at prevailing exchange rates as follows: assets and liabilities at the
rate of exchange at the end of the respective period, purchases and sales of
securities and income and expenses at the rate of exchange prevailing on the
dates of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains or losses is reflected as a component of
such gains or losses.
D) 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 an identified cost basis. Dividend income and distributions to
shareholders are recorded by the Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
Effective January 1, 1993, the Fund discontinued its practice of equalization.
NOTE 2 - FINANCIAL INSTRUMENTS
As a part of its investment program, the Fund engages in the following
activities, the nature and risk of which are set forth more fully in the Fund's
Prospectus and Statement of Additional Information.
A) Emerging Markets - The Fund has investments in securities of companies
located in emerging markets. Future economic or political developments could
adversely affect the liquidity or value, or both, of such securities.
B) Other - Purchases and sales of portfolio securities, other than short-term
and U.S. Government securities, aggregated $1,079,206,000 and $723,343,000.
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 and distribute all of its
taxable income.
At April 30, 1994, the aggregate cost of investments for federal income tax
and financial reporting purposes was $1,882,900,000 and net unrealized
appreciation aggregated $65,785,000, of which $175,054,000 related to
appreciated investments and $109,269,000 to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The Fund is managed by Rowe Price-Fleming International, Inc. (Price-Fleming)
which is owned by T. Rowe Price Associates, Inc. (Price Associates), Robert
Fleming Holdings Limited, and Jardine Fleming Holdings Limited under a joint
venture agreement.
The investment management agreement between the Fund and Price-Fleming (the
Manager) provides for an annual investment management fee, computed daily and
paid monthly, consisting of an Individual Fund Fee equal to 0.50% of average
daily net assets and a Group Fee. The Group Fee is based on the combined assets
of certain mutual funds sponsored by the Manager or Price Associates (the
Group). The Group Fee rate ranges from 0.48% for the first $1 billion of assets
to 0.31% for assets in excess of $34 billion. The effective annual Group Fee
rate at April 30, 1994, and for the six months then ended was 0.34%. The Fund
pays a pro rata portion of the Group Fee
10
<PAGE>
based on the ratio of the Fund's net assets to those of the Group.
During the six months ended April 30, 1994, the Fund, in the ordinary
course of business, paid commissions of $1,685,000 to, and placed security
purchase and sale orders aggregating $383,710,000 with, certain affiliates of
the Manager in connection with the execution of various portfolio transactions
at the direction of Price-Fleming.
T. Rowe Price Services, Inc. (TRPS) and Retirement Plan Services, Inc.
(RPS) are wholly owned subsidiaries of Price Associates. TRPS provides transfer
and dividend disbursing agent functions and shareholder services for all
accounts. RPS provides subaccounting and recordkeeping services for certain
retirement accounts invested in the Fund. Price Associates, under a separate
agreement, calculates the daily share price and maintains the financial records
of the Fund. For the six months ended April 30, 1994, the Fund incurred fees
totalling approximately $2,760,000 for these services provided by related
parties. At April 30, 1994, these investment management and service fees
payable were $1,786,000.
FINANCIAL HIGHLIGHTS
T. Rowe Price New Asia Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
-------------------------------------------------------------------------------
From
September 28, 1990
Six Months Ten Months Year Ended (Commencement
Ended Ended December 31, of Operations) to
April 30, October 31, ---------------------- December 31,
1994 1993++ 1992 1991 1990
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD............................ $ 19.76 $ 12.68 $ 11.82 $ 10.08 $ 10.00
---------- ---------- -------- -------- --------
Investment Activities
Net investment income.......................... 0.04 0.07 0.20 0.21* 0.09*
Net realized and unrealized gain (loss)........ (0.65) 7.01 1.12 1.73 0.07
---------- ---------- -------- -------- --------
Total from Investment Activities.................. (0.61) 7.08 1.32 1.94 0.16
---------- ---------- -------- -------- --------
Distributions
Net investment income.......................... (0.07) -- (0.20) (0.20) (0.08)
Net realized gain.............................. (0.38) -- (0.26) -- --
---------- ---------- -------- -------- --------
Total Distributions............................... (0.45) -- (0.46) (0.20) (0.08)
---------- ---------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.................... $ 18.70 $ 19.76 $ 12.68 $ 11.82 $ 10.08
========== ========== ======== ======== ========
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Total Return...................................... (3.3)% 55.8% 11.2% 19.3% 1.6%
Ratio of Expenses to Average Net Assets........... 1.32%+ 1.29%+ 1.51% 1.75%* 1.75%+*
Ratio of Net Investment Income to
Average Net Assets............................. 0.51%+ 1.02%+ 1.64% 1.75% 2.10%+
Portfolio Turnover Rate........................... 78.2%+ 40.4%+ 36.3% 49.0% 3.2%+
Net Assets, End of Period (in thousands).......... $1,954,097 $1,650,450 $314,504 $102,922 $ 10,986
Number of Shareholder Accounts, End of Period..... 172,000 106,000 37,000 14,000 2,000
===================================================================================================================================
</TABLE>
++ The Fund's fiscal year-end was changed to October 31.
* Excludes expenses in excess of a 1.75% voluntary expense limitation in
effect through December 31, 1992.
+ Annualized.
Note: This table does not reflect the Fund's 2 for 1 split, which occurred
on May 27, 1994, after the close of the period covered by this report.
11
<PAGE>
GRAPHICS APPENDIX LIST
----------------------
New Asia Fund
-------------
Geographical Comparison
A pie chart breaks out the percentages of New Asia Fund holdings held in
individual countries throughout Asia.
<PAGE>
SemiAnnual Report
------------------------------------------------------------------------------
For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distri-
bution only to shareholders and to
others who have received a copy of
the prospectus of the T. Rowe Price
New Asia Fund.
T. Rowe Price
Invest With Confidence (R)
NAS
T. Rowe Price
-------------
New Asia Fund
April 30, 1994
[ART APPEARS HERE]
