<PAGE>
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T. Rowe Price
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Annual Report
International Growth & Income Fund
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October 31, 1999
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REPORT HIGHLIGHTS
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INTERNATIONAL GROWTH & INCOME FUND
- ----------------------------------
* International stocks provided respectable returns over the past six
months, but performance was skewed toward high-priced growth and
technology stocks.
* The fund's returns trailed its benchmark primarily because we do not,
as a matter of policy, invest in the types of momentum stocks that led
the index.
* Overseas markets were driven largely by strong global demand and by
corporate restructuring and merger activity.
* We continued to emphasize Europe, where nearly two-thirds of fund
assets are invested.
* Prospects for international stocks, particularly in Europe, are
favorable, though the rally in Japan is likely to moderate in the
months ahead.
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UPDATES AVAILABLE
- --------------------------------------------------------------------------------
For updates on each fund following the end of every calendar quarter,
please see our Web site at www.troweprice.com.
================================================================================
FELLOW SHAREHOLDERS
================================================================================
Although international stocks posted good returns in the six months ended
October 31, 1999, value-oriented and cyclical stocks turned in a mixed
performance. When your fund commenced operations 10 months ago, coordinated
interest rate cuts by central banks around the world, and by the U.S. Federal
Reserve in particular, had succeeded in restoring confidence and liquidity to
global markets. The global economy also began to recover to the point that by
June 30, the Fed and other central banks were raising interest rates again. As
the liquidity-fueled rallies of early 1999 gave way to a more narrow advance,
fund performance was lackluster.
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<PAGE>
PERFORMANCE COMPARISON
----------------------
Since Inception
Periods Ended 10/31/99 6 Months 12/21/98
---------------------- -------- --------
International
Growth & Income Fund 2.33% 10.00%
MSCI EAFE Index 6.87 12.85*
* From 12/31/98
================================================================================
The International Growth & Income Fund's 2.33% gain over the past six
months lagged the 6.87% advance of the Morgan Stanley Capital International EAFE
(Europe, Australasia, and Far East) Index. Since inception performance was also
behind the benchmark. Most of the EAFE index returns during both periods came
from resurgent Asian markets, but the lower-valued and higher-yielding stocks
favored by the fund lagged, especially in Japan. Such stocks had fared well
earlier in the year, but were hurt recently by higher interest rates and
investors' focus on momentum and high-priced growth stocks, technology issues in
particular.
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MARKET ENVIRONMENT
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Global recovery, the technology and telecommunications boom, economic
reforms in major Asian countries, and a heavy pace of mergers, acquisitions, and
corporate restructuring drove international markets during the past six months.
Industry consolidation and restructuring accelerated in Europe, where merger
activity year-to-date totaled $1 trillion, compared with a record of $870
billion in 1998.
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THE SECTOR FACTOR IN INTERNATIONAL INVESTING
- --------------------------------------------
Computer chips made in Ireland. Hollywood animation--from India. Internet
venture capitalists from Japan. Companies today have growth opportunities, labor
pools, competitive threats, acquisition targets, and potential suitors all over
the world.
International investing is no longer just a matter of having local
expertise in global markets. Today's investor needs to be aware of global
industry trends in addition to local realities. For the past 20 years, T. Rowe
Price and its international investing arm, Rowe Price-Fleming International,
have participated in the evolution of this new global marketplace and have
evolved with it. Rowe Price-Fleming's international sector team works in concert
with our regional portfolio managers, looking at cross-border trends that can
create opportunities and risks in industries such as technology,
pharmaceuticals, and financial services.
<PAGE>
Nowhere is this global sector imperative more evident than in
telecommunications. Telecom firms need global scale to compete, and their
fortunes are no longer exclusively tied to local or even regional factors. Hence
Deutsche Telekom's unsuccessful bid for Telecom Italia, and the bid by Germany's
Mannesmann for U.K. wireless phone company Orange.
The chart below shows that global sector factors are growing increasingly
important to the direction of stock prices. In the case of Telecom Italia, the
chart shows that the correlation of its stock price to the global telecom sector
(blue bar) rose significantly in 1997-98. (Data from the two years is averaged
together.) The gray bar shows that during this period the stock's correlation to
the Italian market declined. The examples of ING Groep and Societe Generale show
that while their stock prices became modestly more correlated to their local
markets, they became even more correlated to other global financial concerns.
"We have sharpened our understanding of global trends that drive stock
prices in the longer term, because we've got to be totally on top of the
competitive forces affecting returns at different companies," said John Ford,
chief investment officer at Rowe Price-Fleming. "For example, what is the
relative attractiveness of a Denso in Japan compared with another auto
components company such as Valeo in France? We've got to be aware of
cross-border valuations and industry trends." Of course, local factors still
dominate the outlook for some companies. The task for the informed international
investor is to appreciate both the global and the local influences. Rowe
Price-Fleming International, with its experienced team of investment
professionals worldwide, is as well positioned as ever to find the best
investment opportunities for you.
Influence of Globalaztion on Stocks Chart is shown here.
================================================================================
MARKET PERFORMANCE
------------------
Six Months Local Local Currency U.S.
Ended 10/31/99 Currency vs. U.S. Dollars Dollars
-------------- ------------ ------------ -------
France 12.67% -0.65% 11.94%
Germany 4.10 -0.65 3.42
Hong Kong -0.30 -0.25 -0.54
Italy -8.74 -0.65 -9.34
Japan 9.18 14.38 24.88
Mexico -0.84 -3.05 -3.86
Netherlands 0.47 -0.65 -0.19
Norway -1.14 -0.74 -1.87
Sweden 20.80 2.10 23.33
Switzerland -1.21 -0.08 -1.28
United Kingdom -4.84 1.92 -3.02
Source: RIMESOnline, using MSCI indices.
================================================================================
<PAGE>
Stronger-than-expected economic data from Japan pushed the yen up 14%
against the dollar over the past six months, enhancing the Japanese market's
gains for U.S. investors. Japan also experienced an unprecedented level of
company restructuring. But the yen's sharp rise threatened to hurt Japan's
important export sector and stall the nascent economic recovery. Elsewhere in
Asia, growth was strongest where significant steps toward structural reform were
taken. Latin American markets were weak due to concerns about the region's large
fiscal deficits, rising U.S. interest rates, political uncertainty, and growing
resistance to necessary reforms in some countries, particularly in Brazil.
================================================================================
PORTFOLIO REVIEW
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Europe
- ------
Europe remained our largest regional exposure at 64% of net assets, and
European stocks were little changed, on average, over the past six months.
Rising U.S. interest rates, weaker U.S. consumer demand, and a flurry of initial
public offerings held back the equity markets. However economic recovery took
hold as exports, industrial production, and business confidence picked up, while
consumer confidence remained strong. The decline of the euro (the single
European currency introduced in January) against the dollar through early 1999
moderated early in the period as local economies strengthened. Inflation in the
Eurozone and the U.K. was restrained.
European governments are attempting to enact structural reforms to improve
labor market flexibility and reduce social security and tax burdens on
corporations. Germany, for example, instituted important tax reforms that will
include a corporate tax cut of 15% in 2001. The use of a common currency has
made cost comparisons across Europe easier, introducing competitive pressure
among countries anxious to attract business investment.
Deregulation and the need to boost shareholder value drove companies to
restructure internally, divest non-core businesses, and merge with or acquire
other companies. European corporations are now taking the kinds of bold steps
once seen only among U.S. companies. Industry consolidation also increased and
was greatest in the banking sector but also touched energy, telecom, and
retailing. Telecommunications and electricity prices declined significantly as
price supports and barriers to competition fell. Among our holdings, strength in
financial services and telecom was offset by weakness in cyclical stocks.
With recovery strengthening in the U.K., the central bank reversed its June
interest rate cut by increasing rates a quarter percentage point in September,
even though inflation was below the target. The nearly 30% rise in oil prices
over the six months, and progress in raising shareholder returns, boosted the
performance of oil major SHELL TRANSPORT & TRADING. Another top U.K. holding,
integrated oil giant BP AMOCO, did not gain much ground during the period. BP's
$29 billion bid for its number two rival, Atlantic Richfield, encountered tough
scrutiny from the U.S. Federal Trade Commission and the state of Alaska. Banks
in the U.K. took a step toward consolidation as BANK OF SCOTLAND made a hostile
bid for its larger rival National Westminster Bank. Cyclical and manufacturing
stocks were generally weak, such as aircraft engine maker ROLLS ROYCE (which
sold its luxury auto business) and building products supplier BLUE CIRCLE
INDUSTRIES. IMPERIAL CHEMICAL INDUSTRIES (ICI) fell slightly despite announcing
several positive steps to increase shareholder value, including the sale of
non-core businesses as the company seeks to focus on specialty chemicals and
paints. Relatively slow-growing ICI, with its 6% dividend yield, reasonable
valuation, and improving earnings estimates, is a good example of the type of
stock we like to own, where we think company restructuring and a reassessment by
the marketplace can eventually boost its valuation.
<PAGE>
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[Geographic Diversification pie chart, with the following wedges: Europe 64%,
Japan 21%, Far East 6%, Latin America 3%, Other and Reserves 6%]
================================================================================
FRANCE was the strongest market within the Eurozone during the six-month
period. Its economic recovery, robust consumer sector, relative absence of
political tension, and a large amount of merger and acquisition activity
stimulated a 12% rise. In the banking sector, BANQUE NATIONAL DE PARIS (BNP) won
control of Paribas although it failed to acquire SOCIETE GENERALE as well. Also
in the strong financial sector, global insurer and asset manager AXA, with
diverse holdings such as Equitable and Donaldson, Lufkin & Jenrette in the U.S.,
was a solid performer. In energy, TOTAL FINA (product of a recent merger between
French Total and Belgian Petrofina) is to acquire competitor ELF AQUITAINE.
FRANCE TELECOM was a good performer in the strong telecom group. Pharmaceutical
and chemical giant RHONE POULENC plans to merge with HOECHST of Germany.
The GERMAN economy continued to recover during the past six months,
boosting prospects for the entire region since Germany accounts for 30% of
Eurozone GDP. The proposed budget reflects the government's determination to
reduce fiscal spending and relieve the corporate sector of tax and social
security costs. Despite resistance from trade unions, opposition parties, and
liberal members of the governing party, it appears that compromises will be
reached. Strong holdings here included DEUTSCHE TELEKOM, which bid
unsuccessfully for TELECOM ITALIA but is likely to be a major player in future
telecom mergers. On the weak side was BAYER, which has interests in chemicals as
well as human and animal health care.
In ITALY, weaker economic growth, higher inflation, and political conflict
about cutting fiscal spending resulted in poor stock market results. Financial
services companies have been consolidating. After insurer Assicurazioni Generali
made a hostile bid for banking and insurance company ISTITUTO NAZIONALE DELLE
ASSICURAZIONI (INA) (which had agreed to merge with bank SANPAOLO IMI), the two
companies agreed to split INA's businesses between them.
================================================================================
INDUSTRY DIVERSIFICATION
------------------------
Percent of Net Assets
4/30/99 10/31/99
Finance 22.7% 24.3%
Consumer Goods 19.5 21.5
Services 16.4 15.6
Capital Equipment 11.1 14.5
Energy 10.4 10.6
Materials 8.1 7.9
Multi-industry 2.1 2.0
All Other 1.0 0.9
Reserves 8.7 2.7
Total 100.0% 100.0%
================================================================================
<PAGE>
SWEDEN, not part of the Eurozone, was Europe's strongest market overall
with a better than 20% gain for the six months. Here SCANIA, a truck maker,
agreed to be acquired by Volvo in a deal expected to close sometime this year.
Reflecting the widespread bank consolidation trend, Swedish and FINNISH concern
MERITANORDBANKEN, itself the product of a merger, bid for Norway's
second-largest bank CHRISTIANIA BANK.
Japan
- -----
In JAPAN, stronger-than-expected economic data and increased evidence of
corporate restructuring stimulated heavy foreign buying and pushed the yen up
sharply. The Bank of Japan's quarterly surveys and industrial production figures
reflected a healthier, but still weak, economy. Private consumption improved
slightly, as did private sector capital expenditure. However, unemployment
remained well above historic levels. The government announced plans for more
fiscal stimulation later this autumn, although there are limits to how much more
it can do since the budget deficit is already well above 10% of GDP.
Investors were encouraged by positive corporate developments, such as
increasing investment by foreign telecom firms. Our telecom holdings in Japan
were very slight, however. The brightest light in our Japanese portfolio was
semiconductor maker KYOCERA. But major positions, particularly in "old economy"
manufacturers such as HONDA and BRIDGESTONE, and copier and office equipment
companies such as RICOH and CANON, performed poorly. We started the period only
slightly underweight in Japan, but as the dramatic rally in the Japanese market
boosted its representation in EAFE, and as our own holdings lagged, a larger
underweighting developed that hurt our performance. The Japanese market, not
unlike its U.S. counterpart, was characterized by an extreme divergence between
momentum and high-growth stocks and all others.
Far East
- --------
Concerns about rising U.S. interest rates weighed on Asian markets outside
of Japan. Despite stock market weakness, HONG KONG'S recovery took hold while
CHINA also reported improved economic data. With these markets subdued, both
government and private companies felt the pressure to continue with their
reforms and restructuring. Our Hong Kong investments include CHEUNG KONG
HOLDINGS, a major property development and investment group, and HUTCHISON
WHAMPOA, which began mainly as a property holding company but has successfully
built major regional franchises in mobile telecommunications and in the
operation of vast commercial ports.
================================================================================
OUTLOOK
- --------------------------------------------------------------------------------
We expect further economic recovery to boost European markets, and believe
the euro should strengthen against the dollar as we enter 2000. The accelerated
pace of corporate restructuring and consolidation is likely to continue given
the renewed focus on increasing shareholder value and the need to remain
competitive in the global economy.
<PAGE>
=============================
We expect further
economic recovery to
boost European markets . . .
=============================
Though there may be more good news on the economic front in Japan, the yen
is now strong enough to impede export growth, which could dampen the recovery.
The government's ability to provide further fiscal stimulus may be restrained by
growing budget deficits. Further gains in the Japanese stock market are likely
to be more moderate until investors are convinced that corporations have
restructured enough to boost profitability.
Elsewhere in Asia we see economies improving further, although at less
spectacular rates than in the past. Recent market setbacks should encourage
governments in South Korea, Singapore, and elsewhere to push ahead with
much-needed reforms. The steps taken so far have enhanced prospects for economic
and corporate earnings growth throughout the region, but more are needed.
Though results have been mixed in our first 10 months of operation, we
remain confident that international markets will eventually broaden, allowing a
more diverse group of companies to participate in future rallies. The
well-established global trends of restructuring, cross-border competition and
consolidation, and focusing on shareholder interests should benefit those
companies we have identified as reasonably priced or undervalued based on their
earnings potential or underlying assets.
Respectfully submitted,
/s/
Martin G. Wade
President
November 23, 1999
================================================================================
<PAGE>
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
10/31/99
--------
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
10/31/99
- --------------------------------------------------------------------------------
Shell Transport & Trading, United Kingdom 1.4%
- --------------------------------------------------------------------------------
Takeda Chemical Industries, Japan 1.2
- --------------------------------------------------------------------------------
ABB, Switzerland 1.2
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Canon, Japan 1.2
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Bridgestone, Japan 1.1
- --------------------------------------------------------------------------------
Sumitomo Chemicals, Japan 1.1
- --------------------------------------------------------------------------------
Imperial Chemical Industries, United Kingdom 1.0
- --------------------------------------------------------------------------------
Kyocera, Japan 1.0
- --------------------------------------------------------------------------------
Honda, Japan 1.0
- --------------------------------------------------------------------------------
Kao, Japan 0.9
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Terumo, Japan 0.9
- --------------------------------------------------------------------------------
British Telecommunications, United Kingdom 0.9
- --------------------------------------------------------------------------------
Tokyo Electric Power, Japan 0.9
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Scania, Sweden 0.9
- --------------------------------------------------------------------------------
AstraZeneca Group, United Kingdom 0.9
- --------------------------------------------------------------------------------
<PAGE>
BPAmoco, United Kingdom 0.9
- --------------------------------------------------------------------------------
Holderbank Financiere Glarus, Switzerland 0.9
- --------------------------------------------------------------------------------
Vontobel Holdings, Switzerland 0.9
- --------------------------------------------------------------------------------
Sumitomo Marine & Fire Insurance, Japan 0.9
- --------------------------------------------------------------------------------
Epcos, Germany 0.8
- --------------------------------------------------------------------------------
Mitsui, Japan 0.8
- --------------------------------------------------------------------------------
Hutchison Whampoa, HongKong 0.8
- --------------------------------------------------------------------------------
Electrolux, Sweden 0.8
- --------------------------------------------------------------------------------
Svenska Handelsbanken, Sweden 0.8
- --------------------------------------------------------------------------------
Akzo Nobel, Netherlands 0.8
- --------------------------------------------------------------------------------
Total 24.0%
Note: Table excludes reserves.
================================================================================
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
PERFORMANCE COMPARISON
----------------------
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.
[SEC chart shown here]
AVERAGE ANNUAL COMPOUND TOTAL RETURN
This table shows how the fund would have performed each year if its actual
(or cumulative) return for the period shown had been earned at a constant rate.
Since Inception
Period Ended 10/31/99 Inception Date
- --------------------- --------- ----
International Growth & Income Fund 10.00% 12/21/98
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
<PAGE>
================================================================================
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
12/21/98
Through
10/31/99
--------
NET ASSET VALUE
Beginning of period $ 10.00
- -------------------------------------------------------------------------------
Investment activities
Net investment income 0.16*
Net realized and unrealized gain(loss) 0.84
- -------------------------------------------------------------------------------
Total from investment activities 1.00
- -------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 11.00
Ratios/Supplemental Data
Total return** 10.00%*
- -------------------------------------------------------------------------------
Ratio of total expenses to average net assets 1.25%+*
- -------------------------------------------------------------------------------
Ratio of net investment income to average net assets 1.87%+*
- -------------------------------------------------------------------------------
Portfolio turnover rate 35.8%+
- -------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 9,776
- -------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
+ Annualized
* Excludes expenses in excess of a 1.25% voluntary expense limitation in
effect through 10/31/00.
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
October 31, 1999
Statement of Net Assets
Shares Value
In thousands
ARGENTINA 0.5%
Common Stocks 0.5%
Banco de Galicia y Buenos Aires (Class B) ADR (USD) 800 $ 17
- -------------------------------------------------------------------------------
Telecom Argentina Stet France (Class B) ADR (USD) 800 22
- -------------------------------------------------------------------------------
Telefonica de Argentina (Class B) ADR (USD) 500 13
- -------------------------------------------------------------------------------
Total Argentina (Cost $52) 52
- -------------------------------------------------------------------------------
AUSTRALIA 3.3%
Common Stocks 3.3%
AMP Limited 4,500 46
- -------------------------------------------------------------------------------
Australia & New Zealand Bank Group 5,900 39
- -------------------------------------------------------------------------------
Coles Myer Limited 7,500 37
- -------------------------------------------------------------------------------
Normandy Mining 39,000 30
- -------------------------------------------------------------------------------
Pacific Dunlop 16,600 24
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Publishing & Broadcasting 5,800 35
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Rio Tinto 2,000 32
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Santos 11,400 29
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Westfield Trust 13,700 26
- -------------------------------------------------------------------------------
Westpac Banking 3,800 24
- -------------------------------------------------------------------------------
Total Australia (Cost $337) 322
- -------------------------------------------------------------------------------
AUSTRIA 0.6%
Common Stocks 0.6%
Brau-Union (EUR) 600 28
- -------------------------------------------------------------------------------
EVN Energie Versorgung Nieder (EUR) 200 29
- -------------------------------------------------------------------------------
Total Austria (Cost $61) 57
- -------------------------------------------------------------------------------
<PAGE>
BELGIUM 1.4%
Common Stocks 1.4%
Dexia (EUR) 300 44
- -------------------------------------------------------------------------------
Electrabel (EUR) 130 43
- -------------------------------------------------------------------------------
Solvay (EUR) 700 54
- -------------------------------------------------------------------------------
Total Belgium (Cost $147) 141
- -------------------------------------------------------------------------------
BRAZIL 0.5%
Common Stocks 0.5%
Companhia Vale do Rio Doce ADR (USD) 1,300 $ 26
- -------------------------------------------------------------------------------
Telebras ADR (USD) 300 23
- -------------------------------------------------------------------------------
49
- -------------------------------------------------------------------------------
Preferred Stocks 0.0%
Telebras ADR (USD) * 300 0
- -------------------------------------------------------------------------------
0
- -------------------------------------------------------------------------------
Total Brazil (Cost $49) 49
- -------------------------------------------------------------------------------
CHILE 0.1%
Common Stocks 0.1%
Compania de Telecomunicaciones de Chile (Class A) ADR (USD) 400 6
- -------------------------------------------------------------------------------
Enersis ADS (USD) 302 7
- -------------------------------------------------------------------------------
Total Chile (Cost $16) 13
- -------------------------------------------------------------------------------
DENMARK 1.4%
Common Stocks 1.4%
Danisco 840 35
- -------------------------------------------------------------------------------
Tele Danmark A/S 600 37
- -------------------------------------------------------------------------------
Unidanmark (Class A) 800 62
- -------------------------------------------------------------------------------
Total Denmark (Cost $139) 134
- -------------------------------------------------------------------------------
FINLAND 0.9%
Common Stocks 0.9%
Kesko (EUR) 3,550 40
- -------------------------------------------------------------------------------
MeritaNordbanken (EUR) 7,610 44
- -------------------------------------------------------------------------------
Total Finland (Cost $96) 84
- -------------------------------------------------------------------------------
FRANCE 8.6%
Common Stocks 8.6%
Accor (EUR) 200 45
<PAGE>
- -------------------------------------------------------------------------------
Assurances Generales de France (EUR) 940 52
- -------------------------------------------------------------------------------
Axa ADR (USD) 1,000 70
- -------------------------------------------------------------------------------
B.U.S. Berzelius Umwelt-Service (EUR) 2,000 26
- -------------------------------------------------------------------------------
Banque National de Paris (EUR) 400 35
- -------------------------------------------------------------------------------
Cie de St. Gobain (EUR) 310 $ 54
- -------------------------------------------------------------------------------
France Telecom ADR (USD) 500 48
- -------------------------------------------------------------------------------
Fromageries (EUR) 40 32
- -------------------------------------------------------------------------------
Labinal (EUR) * 200 26
- -------------------------------------------------------------------------------
LVMH (EUR) 80 24
- -------------------------------------------------------------------------------
Pernod Ricard (EUR) 800 54
- -------------------------------------------------------------------------------
Pinault Printemps Redoute (EUR) 240 46
- -------------------------------------------------------------------------------
Renault (EUR) 1,000 52
- -------------------------------------------------------------------------------
Rhone Poulenc (EUR) 1,080 61
- -------------------------------------------------------------------------------
Schneider Electric (EUR) 700 48
- -------------------------------------------------------------------------------
Societe Generale (EUR) 300 65
- -------------------------------------------------------------------------------
Technip (EUR) 460 47
- -------------------------------------------------------------------------------
Total Fina (Class B) (EUR) 399 54
- -------------------------------------------------------------------------------
Total France (Cost $734) 839
- -------------------------------------------------------------------------------
GERMANY 8.1%
Common Stocks 8.1%
Altana (EUR) 560 40
- -------------------------------------------------------------------------------
AMB Aachener & Muenchener Beteiligungs (EUR) 400 34
- -------------------------------------------------------------------------------
AXA Colonia Konzern (EUR) 420 43
- -------------------------------------------------------------------------------
BASF (EUR) 1,010 45
- -------------------------------------------------------------------------------
Bayer (EUR) 1,300 53
- -------------------------------------------------------------------------------
Bayerische Vereinsbank (EUR) 500 33
- -------------------------------------------------------------------------------
Celanese (EUR) * 55 1
- -------------------------------------------------------------------------------
Daimler Chrysler (USD) 600 47
<PAGE>
- -------------------------------------------------------------------------------
Deutsche Bank (EUR) * 710 51
- -------------------------------------------------------------------------------
Deutsche Telekom ADR (USD) 1,000 46
- -------------------------------------------------------------------------------
Dresdner Bank (EUR) 740 38
- -------------------------------------------------------------------------------
Epcos (EUR) * 2,000 82
- -------------------------------------------------------------------------------
Heidelberg Zement (EUR) 600 46
- -------------------------------------------------------------------------------
HEW-Hamburgische Electricitaets- Werke (EUR) 2,100 42
- -------------------------------------------------------------------------------
Hoechst (EUR) 550 24
- -------------------------------------------------------------------------------
Lufthansa (EUR) 1,210 25
- -------------------------------------------------------------------------------
Man (EUR) 1,600 53
- -------------------------------------------------------------------------------
RWE (EUR) 1,200 48
- -------------------------------------------------------------------------------
Veba (EUR) 800 43
- -------------------------------------------------------------------------------
Total Germany (Cost $758) 794
- -------------------------------------------------------------------------------
HONG=KONG3.2%
Common Stocks 3.2%
Cheung Kong Holdings 6,000 $ 55
- -------------------------------------------------------------------------------
Hang Seng Bank 4,000 44
- -------------------------------------------------------------------------------
Hong Kong Electric 21,000 64
- -------------------------------------------------------------------------------
Hutchison Whampoa 8,000 80
- -------------------------------------------------------------------------------
Yue Yuen Industrial 26,000 66
- -------------------------------------------------------------------------------
Total Hong Kong (Cost $249) 309
- -------------------------------------------------------------------------------
ITALY4.1%
Common Stocks 4.1%
Banca Commerciale Italiana (EUR) 5,900 36
- -------------------------------------------------------------------------------
Benetton Group (EUR) 26,200 58
- -------------------------------------------------------------------------------
ENI SPA ADR (USD) 700 41
- -------------------------------------------------------------------------------
Falck Acciaierie & Ferriere Lombarde (EUR) 7,000 51
- -------------------------------------------------------------------------------
Istituto Nazionale delle Assicurazioni (EUR) 20,000 61
- -------------------------------------------------------------------------------
Parmalat Finanz (EUR) 39,000 51
<PAGE>
- -------------------------------------------------------------------------------
Sanpaolo IMI ADR (USD) * 1,400 37
- -------------------------------------------------------------------------------
Telecom Italia (EUR) 4,100 35
- -------------------------------------------------------------------------------
Toro Assicurazioni (EUR) 2,700 33
- -------------------------------------------------------------------------------
Total Italy (Cost $422) 403
- -------------------------------------------------------------------------------
JAPAN 20.7%
Common Stocks 20.7%
Bridgestone 4,000 110
- -------------------------------------------------------------------------------
Canon 4,000 113
- -------------------------------------------------------------------------------
Dai Nippon Printing 4,000 73
- -------------------------------------------------------------------------------
Daiichi Pharmaceutical 3,000 43
- -------------------------------------------------------------------------------
Denso 3,000 64
- -------------------------------------------------------------------------------
Fuji Photo Film ADR (USD) 1,500 48
- -------------------------------------------------------------------------------
Honda ADR (USD) 1,100 93
- -------------------------------------------------------------------------------
Japan Tobacco 6 66
- -------------------------------------------------------------------------------
JUSCO 3,000 70
- -------------------------------------------------------------------------------
Kao 3,000 92
- -------------------------------------------------------------------------------
Kuraray 4,000 54
- -------------------------------------------------------------------------------
Kyocera 1,000 96
- -------------------------------------------------------------------------------
Makita 4,000 38
- -------------------------------------------------------------------------------
Marui 3,000 57
- -------------------------------------------------------------------------------
Matsushita Electric Industrial 3,000 $ 63
- -------------------------------------------------------------------------------
Mitsubishi Heavy Industries 12,000 47
- -------------------------------------------------------------------------------
Mitsui 11,000 81
- -------------------------------------------------------------------------------
Nippon Express 10,000 71
- -------------------------------------------------------------------------------
Ricoh 3,000 49
- -------------------------------------------------------------------------------
Sekisui House 6,000 65
- -------------------------------------------------------------------------------
Sumitomo Bank 4,000 64
- -------------------------------------------------------------------------------
Sumitomo Chemicals 16,000 103
<PAGE>
- -------------------------------------------------------------------------------
Sumitomo Marine & Fire Insurance 11,000 85
- -------------------------------------------------------------------------------
Takeda Chemical Industries 2,000 115
- -------------------------------------------------------------------------------
TDK ADR(USD) 500 48
- -------------------------------------------------------------------------------
Terumo 3,000 91
- -------------------------------------------------------------------------------
Tokyo Electric Power 4,000 89
- -------------------------------------------------------------------------------
Wacoal 4,000 41
- -------------------------------------------------------------------------------
Total Japan (Cost $1,713) 2,029
- -------------------------------------------------------------------------------
MEXICO 1.4%
Common Stocks 1.4%
Cemex (Represents 2 Class A and 1 Class B shares) * 6,000 27
- -------------------------------------------------------------------------------
Femsa UBD (Represents 1 Class B and 4 Series D shares) 8,000 26
- -------------------------------------------------------------------------------
Grupo Financiero Banamex * 13,000 33
- -------------------------------------------------------------------------------
Kimberly-Clark de Mexico (Class A) 7,000 22
- -------------------------------------------------------------------------------
Telefonos de Mexico (Class L) ADR (USD) 300 26
- -------------------------------------------------------------------------------
Total Mexico (Cost $120) 134
- -------------------------------------------------------------------------------
NETHERLAND S5.0%
Common Stocks 5.0%
ABN Amro Holdings (USD) 2,900 70
- -------------------------------------------------------------------------------
Akzo Nobel (EUR) 1,700 73
- -------------------------------------------------------------------------------
CSM (EUR) 1,100 51
- -------------------------------------------------------------------------------
Fortis NI (EUR) 1,700 58
- -------------------------------------------------------------------------------
Hagemeyer (EUR) 1,600 33
- -------------------------------------------------------------------------------
ING Groep (EUR) 1,200 71
- -------------------------------------------------------------------------------
OCE (EUR) 1,300 22
- -------------------------------------------------------------------------------
Telegraaf Holdings (EUR) 3,000 55
- -------------------------------------------------------------------------------
Vendex KBB (EUR) 2,000 58
- -------------------------------------------------------------------------------
Total Netherlands (Cost $537) 491
- -------------------------------------------------------------------------------
NEW ZEALAND 0.5%
Common Stocks 0.5%
Fernz 10,000 $ 23
<PAGE>
- -------------------------------------------------------------------------------
Lion Nathan 6,400 14
- -------------------------------------------------------------------------------
Telecom Corp. of New Zealand ADR (USD) 500 16
- -------------------------------------------------------------------------------
Total New Zealand (Cost $64) 53
- -------------------------------------------------------------------------------
NORWAY 1.8%
Common Stocks and Rights 1.8%
Christiania Bank 10,600 51
- -------------------------------------------------------------------------------
Norsk Hydro 1,200 48
- -------------------------------------------------------------------------------
Orkla (Class A) 2,700 38
- -------------------------------------------------------------------------------
Orkla Asa, Rights, 11/22/99 * 2,700 5
- -------------------------------------------------------------------------------
Storebrand Asa 4,900 34
- -------------------------------------------------------------------------------
Total Norway (Cost $163) 176
- -------------------------------------------------------------------------------
SINGAPORE 2.8%
Common Stocks 2.8%
DBSGroup Holdings 5,815 66
- -------------------------------------------------------------------------------
Singapore Airlines 5,000 53
- -------------------------------------------------------------------------------
Singapore Land 16,000 36
- -------------------------------------------------------------------------------
Singapore Press 4,000 68
- -------------------------------------------------------------------------------
United Overseas Bank 6,000 45
- -------------------------------------------------------------------------------
Total Singapore (Cost $203) 268
- -------------------------------------------------------------------------------
SPAIN 3.7%
Common Stocks 3.7%
Argentaria Banca de Espana (EUR) 1,500 33
- -------------------------------------------------------------------------------
Banco Santander Central Hispanos ADR (USD) 4,000 41
- -------------------------------------------------------------------------------
Cristaleria Espanola (EUR) 740 35
- -------------------------------------------------------------------------------
Endesa ADR (USD) 1,900 38
- -------------------------------------------------------------------------------
Grupo Dragados (EUR) 5,100 54
- -------------------------------------------------------------------------------
Iberdrola (EUR) 3,000 44
- -------------------------------------------------------------------------------
Repsol ADR (USD) 2,500 51
- -------------------------------------------------------------------------------
Telefonica de Espana ADR (USD) * 1,230 61
- -------------------------------------------------------------------------------
Total Spain (Cost $376) 357
<PAGE>
- -------------------------------------------------------------------------------
SWEDEN 3.4%
Common Stocks 3.4%
AstraZeneca Group 908 $ 41
- -------------------------------------------------------------------------------
Autoliv 1,500 48
- -------------------------------------------------------------------------------
Electrolux (Class B) 4,000 80
- -------------------------------------------------------------------------------
Scania 2,400 87
- -------------------------------------------------------------------------------
Svenska Handelsbanken * 5,400 75
- -------------------------------------------------------------------------------
Total Sweden (Cost $302) 331
- -------------------------------------------------------------------------------
SWITZERLAND 5.6%
Common Stocks 5.6%
ABB * 1,134 114
- -------------------------------------------------------------------------------
Hero * 300 37
- -------------------------------------------------------------------------------
Holderbank Financiere Glarus 70 86
- -------------------------------------------------------------------------------
Novartis 30 45
- -------------------------------------------------------------------------------
Schindler Holdings 40 64
- -------------------------------------------------------------------------------
Schweizerische Rueckversicherungs 35 73
- -------------------------------------------------------------------------------
UBS 160 46
- -------------------------------------------------------------------------------
Vontobel Holdings 50 85
- -------------------------------------------------------------------------------
Total Switzerland (Cost $549) 550
- -------------------------------------------------------------------------------
UNITED KINGDOM 19.1%
Common Stocks 19.1%
Abbey National 3,100 61
- -------------------------------------------------------------------------------
Allied Zurich 4,000 48
- -------------------------------------------------------------------------------
Associated British Foods 8,008 50
- -------------------------------------------------------------------------------
AstraZeneca Group ADR (USD) 1,000 46
- -------------------------------------------------------------------------------
Bank of Scotland 3,800 47
- -------------------------------------------------------------------------------
Bass 4,200 46
- -------------------------------------------------------------------------------
BG 6,800 38
- -------------------------------------------------------------------------------
Blue Circle Industries 9,900 46
- -------------------------------------------------------------------------------
Bowthorpe 4,500 45
<PAGE>
- -------------------------------------------------------------------------------
BP Amoco ADR (USD) 1,500 87
- -------------------------------------------------------------------------------
British Telecommunications ADR (USD) 500 90
- -------------------------------------------------------------------------------
Cadbury Schweppes ADR (USD) 2,100 55
- -------------------------------------------------------------------------------
Diageo ADR (USD) 1,500 61
- -------------------------------------------------------------------------------
FKI 20,000 $ 53
- -------------------------------------------------------------------------------
GKN 3,700 60
- -------------------------------------------------------------------------------
Halifax Group 3,700 47
- -------------------------------------------------------------------------------
HSBC Holdings (HKD) 4,800 59
- -------------------------------------------------------------------------------
Imperial Chemical Industries ADR (USD) 2,500 100
- -------------------------------------------------------------------------------
Hilton Group 8,000 25
- -------------------------------------------------------------------------------
Pearson 2,500 55
- -------------------------------------------------------------------------------
Powergen 6,400 56
- -------------------------------------------------------------------------------
Railtrack Group 2,500 51
- -------------------------------------------------------------------------------
Rolls Royce 18,000 64
- -------------------------------------------------------------------------------
Royal & Sun Alliance 6,181 42
- -------------------------------------------------------------------------------
Shell Transport & Trading ADR (USD) 3,000 138
- -------------------------------------------------------------------------------
Slough Estates 9,000 52
- -------------------------------------------------------------------------------
Smith & Nephew 20,000 64
- -------------------------------------------------------------------------------
Tesco 21,000 62
- -------------------------------------------------------------------------------
Thames Water 4,200 61
- -------------------------------------------------------------------------------
Tomkins ADR (USD) 3,500 49
- -------------------------------------------------------------------------------
United Utilities 5,700 56
- -------------------------------------------------------------------------------
Woolwich 9,300 55
<PAGE>
- -------------------------------------------------------------------------------
Total United Kingdom (Cost $1,921) 1,869
- -------------------------------------------------------------------------------
UNITED STATE S0.6%
Common Stocks 0.6%
Pharmacia & Upjohn 1,000 54
- -------------------------------------------------------------------------------
Total United States (Cost $58) 54
- -------------------------------------------------------------------------------
Short-term Investment s1.3%
Money Market Funds 1.3%
Reserve Investment Fund, 5.51% # 131,923 132
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $132) 132
98.6% of Net Assets (Cost $9,198) $ 9,641
Other Assets Less Liabilities 135
NET ASSETS $ 9,776
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 172
Accumulated net realized gain/loss - net of distributions 199
Net unrealized gain (loss) 443
Paid-in-capital applicable to 888,742 shares of $0.01 par
value capital stock outstanding; 2,000,000,000 shares
of the Corporation authorized 8,962
- --------------------------------------------------------------------------------
NET ASSETS $ 9,776
NET ASSET VALUE PER SHARE $ 11.00
* Non-income producing
# Seven-day yield
ADR American depository receipt
ADS American depository share
EUR Euro
HKD Hong Kong dollar
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
STATEMENT OF OPERATIONS
----------------------- In thousands
12/21/98
Through
10/31/99
12/21/98
Through
10/31/99
==Investment=Income======================================================
Income
Dividend (net of foreign taxes of $26) $ 200
Interest 30
- -------------------------------------------------------------------------
Total income 230
- -------------------------------------------------------------------------
Expenses
Custody and accounting 117
Organization and initial registration 34
Shareholder servicing 32
Prospectus and shareholder reports 10
Legal and audit 6
Registration 4
Directors 4
Miscellaneous 2
Reimbursed by manager (117)
- -------------------------------------------------------------------------
Total expenses 92
- -------------------------------------------------------------------------
Net investment income 138
- -------------------------------------------------------------------------
==Realized=and=Unrealized=Gain=(Loss)====================================
Net realized gain (loss)
Securities 212
Foreign currency transactions (13)
- -------------------------------------------------------------------------
Net realized gain (loss) 199
Change in net unrealized gain or loss on securities 443
- -------------------------------------------------------------------------
Net realized and unrealized gain (loss) 642
- -------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
=========================================================================
ASSETS FROM OPERATIONS $ 780
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
12/21/98
Through
10/31/99
==Increase=(Decrease)=in=Net=Assets==========================================
Operations
Net investment income $ 138
Net realized gain (loss) 199
Change in net unrealized gain or loss 443
- -----------------------------------------------------------------------------
Increase (decrease) in net assets from operations 780
- -----------------------------------------------------------------------------
Capital share transactions *
Shares sold 13,689
Shares redeemed (4,693)
- -----------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 8,996
- -----------------------------------------------------------------------------
==Net=Assets=================================================================
Increase (decrease) during period 9,776
Beginning of period -
- -----------------------------------------------------------------------------
=============================================================================
End of period $ 9,776
=============================================================================
*Share information
Shares sold 1,331
Shares redeemed (442)
- -----------------------------------------------------------------------------
Increase (decrease) in shares outstanding 889
The accompanying notes are an integral part of these financial statements.
===============================================================================
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------ October 31, 1999
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
<PAGE>
================================================================================
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
================================================================================
T. Rowe Price International Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The International Growth & Income Fund
(the fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on December
21, 1998. Its goals are long-term growth of capital and reasonable current
income through investments, primarily in common stocks of mature, dividend
paying, non-U.S. companies.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
Valuation Equity securities 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.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using 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.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such gains and losses.
Premiums and Discounts Premiums and discounts on debt securities are
amortized for both financial reporting and tax purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. Credits earned on daily uninvested cash balances
at the custodian are used to reduce the fund's custody charges.
<PAGE>
================================================================================
NOTE 2 - INVESTMENT TRANSACTIONS
================================================================================
Purchases and sales of portfolio securities, other than short-term
securities, aggregated $11,310,000 and $2,451,000, respectively, for the period
ended October 31, 1999.
================================================================================
NOTE 3 - FEDERAL INCOME TAXES
================================================================================
No provision for federal income taxes is required since the fund intends to
qualify as a regulated investment company and distribute all of its taxable
income.
In order for the fund's capital accounts and distributions to shareholders
to reflect the tax character of certain transactions, the following
reclassifications were made during the period ended October 31, 1999. The
results of operations and net assest were not affected by the
increases/(decreases) to these accounts.
================================================================================
Undistributed net investment income $ 34,000
Paid-in-capital (34,000)
================================================================================
At October 31, 1999, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$9,198,000. Net unrealized gain aggregated $443,000 at period-end, of which
$1,021,000 related to appreciated investments and $578,000 to depreciated
investments.
================================================================================
NOTE 4 - RELATED PARTY TRANSACTIONS
================================================================================
The fund is managed by Rowe Price-Fleming International, Inc. (the
manager), 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 the manager
provides for an annual investment management fee. The fee is computed daily and
paid monthly, and consists of an individual fund fee equal to 0.35% 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 0.295% for assets in excess of $120 billion. At October 31, 1999, and for the
period then ended, the effective annual group fee rate was 0.32%. The fund pays
a pro-rata share of the group fee based on the ratio of its net assets to those
of the group.
<PAGE>
Under the terms of the investment management agreement, the manager is
required to bear any expenses through October 31, 2000, which would cause the
fund's ratio of total expenses to average net assets to exceed 1.25%.
Thereafter, through October 31, 2002, the fund is required to reimburse the
manager for these expenses, provided that average net assets have grown or total
expenses have declined sufficiently to allow reimbursement without causing the
fund's ratio of total expenses to average net assets to exceed 1.25%. Pursuant
to this agreement, $49,000 of management fees were not accrued by the fund for
the period ended October 31, 1999, and $117,000 of other expenses were borne by
the manager.
In addition, the fund has entered into agreements with Price Associates and
two wholly owned subsidiaries of Price Associates, pursuant to which the fund
receives certain other services. Price Associates computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $122,000 for the period ended
October 31, 1999, of which $13,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the period ended October 31, 1999, totaled $25,000
and are reflected as interest income in the accompanying Statement of
Operations.
<PAGE>
================================================================================
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- ---------------------------------
TO THE BOARD OF DIRECTORS OF T. ROWE PRICE INTERNATIONAL FUNDS, INC. AND
SHAREHOLDERS OF INTERNATIONAL GROWTH & INCOME FUND
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
International Growth & Income Fund (one of the portfolios comprising T. Rowe
Price International Funds, Inc., hereafter referred to as the "Fund") at October
31, 1999, and the results of its operations, the changes in its net assets and
the financial highlights for the period December 21, 1998 (commencement of
operations) through October 31, 1999, in conformity with generally accepted
accounting principles. 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 audit. We conducted our audit of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian, provides a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 1999
================================================================================
T. Rowe Price International Growth & Income Fund
- ------------------------------------------------
Tax Information (Unaudited) for the Tax Year Ended 10/31/99
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 will pass through foreign source income of $195,000 and foreign
taxes paid of $26,000.
For corporate shareholders, $1,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
================================================================================
<PAGE>
T. Rowe Price Shareholder Services
- ----------------------------------
INVESTMENT SERVICES AND INFORMATION
- -----------------------------------
KNOWLEDGEABLE SERVICE REPRESENTATIVES
-------------------------------------
BY PHONE 1-800-225-5132 Available Monday
through Friday from 8 a.m. to 10 p.m. ET and
weekends from 8:30 a.m. to 5 p.m. ET.
IN PERSON Available in T. Rowe Price
Investor Centers.
ACCOUNT SERVICES
----------------
CHECKING AVAILABLE on most fixed income
funds ($500 minimum).
AUTOMATIC INVESTING From your bank
account or paycheck.
AUTOMATIC WITHDRAWAL Scheduled,
automatic redemptions.
DISTRIBUTION OPTIONS Reinvest all, some,
or none of your distributions.
AUTOMATED 24-HOUR SERVICES Including
Tele*AccessRegistration Mark and the T. Rowe
Price Web site on the Internet. Address:
www.troweprice.com
BROKERAGE SERVICES*
-------------------
INDIVIDUAL INVESTMENTS Stocks, bonds,
options, precious metals, and other
securities at a savings over full-service
commission rates. **
INVESTMENT INFORMATION
----------------------
COMBINED STATEMENT Overview of all your
accounts with T. Rowe Price.
SHAREHOLDER REPORTS Fund managers'
reviews of their strategies and results.
T. ROWE PRICE REPORT Quarterly
investment newsletter discussing markets and
financial strategies.
<PAGE>
PERFORMANCE UPDATE Quarterly review of
all T. Rowe Price fund results.
INSIGHTS Educational reports on
investment strategies and financial markets.
INVESTMENT GUIDES Asset Mix Worksheet,
College Planning Kit, Diversifying Overseas:
A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide,
and Retirement Planning Kit.
* T. Rowe Price Brokerage is a
division of T. Rowe Price
Investment Services, Inc., Member
NASD/SIPC.
** Based on a September 1999 survey
for representative-assisted stock
trades. Services vary by firm, and
commissions may vary depending on
size of order.
================================================================================
T. Rowe Price Mutual Funds
- --------------------------
STOCK FUNDS
- -----------
DOMESTIC
- --------
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
<PAGE>
INTERNATIONAL/GLOBAL
- --------------------
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
- ----------
DOMESTIC TAXABLE
- ----------------
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
DOMESTIC TAX-FREE
- -----------------
California Tax-Free Bond
Florida Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
Virginia Tax-Free Bond
INTERNATIONAL/GLOBAL
- --------------------
Emerging Markets Bond
Global Bond
International Bond
<PAGE>
MONEY MARKET FUNDS
- ------------------
TAXABLE
- -------
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
TAX-FREE
- --------
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
- -------------------
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
- ---------------------
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
funds.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by SECURITY
BENEFIT LIFE INSURANCE COMPANY. In New York, it [#FSB201(11-96)] is issued by
FIRST SECURITY BENEFIT LIFE INSURANCE COMPANY of New York, White Plains, NY. T.
Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
================================================================================
<PAGE>
FOR FUND AND ACCOUNT INFORMATION
OR TO CONDUCT TRANSACTIONS,
24 HOURS, 7 DAYS A WEEK
By touch-tone telephone
TELE*ACCESS 1-800-638-2587
By Account Access on the Internet
WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears
on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus appropriate
to the fund or funds covered in this
report.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
Downtown
101 East Lombard Street
<PAGE>
Owings Mills
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F127-050 10/31/99
