<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price
- --------------------------------------------------------------------------------
Annual Report
Emerging Markets Stock Fund
- --------------------------------------------------------------------------------
October 31, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
EMERGING MARKETS STOCK FUND
- ---------------------------
* Emerging market stocks continued to rally and posted solid results for the
fund's fiscal year.
* The fund's six-month return of 12.03% far surpassed the benchmarks, while
its 40.08% 12-month return was strong in absolute terms and mixed versus
the competition.
* Fund results benefited from stock selection, an underweighting in the slu
ggish Latin American markets, and heavy exposure to the powerful Indian
market.
* The fund remained diversified across a broad spectrum of industries.
* We are optimistic about prospects for 2000 because of broadening global
economic and corporate earnings growth.
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
- --------------------------------------------------------------------------------
Emerging markets continued to rally during the six months ended October 31,
1999, and recorded outstanding gains for the full year as the global economic
environment improved substantially. Stronger GDP numbers out of Japan and
Germany helped considerably. Commodity prices rose following the rally in oil,
erasing worries about global deflation, and current account deficits turned to
surpluses throughout many emerging economies.
<PAGE>
================================================================================
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/99 6 Months 12 Months
---------------------- -------- ---------
Emerging Markets Stock Fund 12.03% 40.08%
MSCI Emerging Markets
Free Index 7.23 44.63
Lipper Emerging Markets
Funds Average 6.87 35.76
================================================================================
For the six months ended October 31, your fund posted a return of 12.03%,
comfortably ahead of the MSCI Emerging Markets Free Index's 7.23% and the Lipper
Emerging Markets Funds Average of 6.87%. For the fiscal year, results were
strong but mixed versus the benchmarks -- surpassing the Lipper average but
lagging the index. A combination of market allocation and stock selection was
responsible for the favorable six-month result. At the country level, the
portfolio benefited from an underweighting in the relatively dull Latin American
markets, and an overweighting in India in particular, which performed strongly.
Regarding stock selection, our focus on technology and telecom shares worked
well, since these sectors advanced powerfully as they did in the developed
markets. PC demand remained strong, benefiting our holdings in South Korea,
Taiwan, India, and Israel, while the growing use of mobile phones exceeded
expectations.
================================================================================
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.
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.
<PAGE>
"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
------------------
(In U.S. Dollar Terms)
Periods Ended 10/31/99 6 Months 12 Months
---------------------- -------- ---------
Argentina -5.95% 20.31%
Brazil -3.34 14.50
Chile -6.87 22.23
China (Free) 12.76 18.28
Israel (Nondomestic) -1.87 14.53
Malaysia (Free) 35.53 189.92
Mexico -3.86 38.47
Poland -7.67 7.37
South Africa 4.08 15.70
Thailand -12.76 27.98
Source: RIMES Online, using MSCI indices.
================================================================================
<PAGE>
At the end of October, 43% of portfolio assets were invested in Asia (up
from 34% at the end of April). A good percentage of this amount was in India
where we continued to find many well-managed software and technology companies
with high returns on equity and strong comparative advantages against their
competitors in the West. Latin America represented 22% of assets, down from 30%
in April, but the sharp decline was largely a result of our accepting a cash
offer from the Spanish company Repsol for our significant holding in oil major
YPF Sociedad Anonima in Argentina. In Emerging Europe, where we had a 16%
allocation (down from 17%), we boosted our exposure to Turkey since the election
of a majority coalition government led to optimism about curing the twin curses
of hyperinflation and high fiscal deficits. We cut back significantly on our
holdings in Greece after investors pushed stocks to excessive valuation levels
compared with their Eastern European counterparts. We increased the fund's
exposure to the Middle East and South Africa, as the latter's economy is finally
recovering from a deep recession and stock valuations are at multiyear lows.
================================================================================
MARKET REVIEW
- --------------------------------------------------------------------------------
Asia
- ----
Asia started the period strongly, but many markets faded during the past
three months with some notable exceptions, including INDIA and Malaysia. In
general, economies continued to recover far faster than expected, interest rates
declined, and liquidity became ever more abundant as trade balances moved
sharply into surplus. News on structural reforms was also positive, with South
Korea allowing greater foreign involvement in corporate restructuring and
Thailand taking steps to recapitalize its weak banking system. SAMSUNG
ELECTRONICS in SOUTH KOREA was the portfolio's single largest holding at 3.8% of
assets, and KOREA TELECOM was another large position at 1.4%. In THAILAND, poor
demand for a new rights offering from Thai Farmers Bank cast a pall on many
Asian financial stocks during the past six months.
However, Indian stocks powered ahead, sparked by the results of the general
elections, which resulted in optimism about the rapid implementation of
market-friendly measures. Our technology and pharmaceutical stocks performed
particularly well, and not even the news of the military coup in neighboring
Pakistan slowed the advance. Major fund positions in the Indian market include
ZEE TELEFILMS and INDUSTRIAL CREDIT & INVESTMENT OF INDIA. In TAIWAN, GDP growth
accelerated to 4.3%. Despite a severe earthquake near Taipei, damage to key
technology industries was minimal. We continue to favor this market, given the
large number of firms earning returns on capital well in excess of cost and
benefiting from the trend toward outsourcing in the personal computer industry.
TAIWAN SEMICONDUCTOR MANUFACTURING and HON HAI PRECISION were two of our top
holdings there.
Our weightings in Thailand, INDONESIA, and the PHILIPPINES have remained
low because of continuing trouble in the financial sectors and the highly
leveraged balance sheets that characterize many companies in these countries.
<PAGE>
Latin America
- -------------
[Pie chart shown here; Latin America 22%, Asia 29%, Europe 12%, Africa and
Middle East 31%, Other and Reserves 6%]
Latin America was the most disappointing region over the past six months,
with most markets down from 3% to 7% in U.S. dollar terms. After the strong
rally in BRAZIL following the January devaluation of the real, confidence faded
amid signs of backsliding on much needed fiscal retrenchment. The government
remains committed to spending cuts, but some of its recent moves to reduce
social security expenditures were deemed unconstitutional in court. Cardoso's
low standing in the polls is also restricting his options, and gridlock in these
critical areas has sent the real sliding back to its low point of the year,
around two to the dollar. Brazilian stock prices remain very low, but until real
interest rates can fall from their punitive 15% level, the stock market is
unlikely to rally. Our primary holding in this key regional market is
TELECOMUNICACOES BRASILEIRAS (TELEBRAS).
In contrast, the MEXICAN economy is in far better shape, benefiting from
Mexico's close trade ties with the U.S. Mexican GDP grew by 2.8% in the June
quarter, and exports continue to post double-digit gains. Despite this good
news, we remain underweighted in Mexican shares as valuations look full,
particularly in the retail and beverage sectors. Our largest position in Mexico
remains TELEFONOS DE MEXICO (TELMEX), which at 3.6% of portfolio assets is just
ahead of Telebras at 2.7%. As mentioned, we accepted an attractive offer for our
shares of YPF SOCIEDAD ANONIMA in ARGENTINA, which had represented about 3% of
portfolio assets at the end of April.
Europe
- ------
<PAGE>
================================================================================
INDUSTRY DIVERSIFICATION
------------------------
Percent of Net Assets
4/30/99 10/31/99
------- --------
Services 37.7% 36.8%
Finance 17.0 17.6
Consumer Goods 20.9 17.2
Capital Equipment 9.6 15.0
Energy 11.2 5.2
Materials 2.0 3.1
Multi-industry - 1.3
All Other 0.1 0.5
Reserves 1.5 3.3
Total 100.0% 100.0%
================================================================================
In Emerging Europe, the most significant action occurred in the
Mediterranean markets of TURKEY and GREECE, where stocks posted substantial
gains. The Greek market moved into "bubble" territory as investors drove stock
valuations to extraordinary heights, fueled mostly by falling interest rates in
anticipation of Greece's entry into the European Monetary Union. In Turkey, the
market pushed higher as parliamentary elections produced the first majority
government in many years, which quickly established a reformist agenda and
passed a new social security law to try to limit the size of the fiscal deficit.
An agreement with the IMF in November that could begin to attack the country's
nearly 100% inflation rate seems possible. YAPI KREDI BANKASI, HURRIYET GAZETTE,
and HACI OMER SABANCI are our largest positions in this market and among the
fund's top 25 holdings.
Elsewhere in the region, the markets were rather more subdued. The big
picture improved for many of these economies as growth picked up in Western
Europe, which buys most of their exports. However, trade deficits remained a
concern in HUNGARY and POLAND. We maintain substantial positions in MATAV in
Hungary and ELEKTRIM in Poland and are optimistic about the potential for these
stocks. The RUSSIAN market continued to be volatile. While resurgent oil prices
helped the trade balance, political uncertainty is high with parliamentary
elections coming at the end of the year. The conflict in Chechnya is also a
source of great concern.
<PAGE>
Africa and Middle East
- ----------------------
Stock markets in the Middle East were relatively unexciting overall, but
some of our telecom and technology stocks performed well, notably EGYPT MOBILE
PHONE, which has rallied over fourfold this year. The stock was a major
portfolio holding, accounting for 2.4% of assets at the end of our fiscal year.
SOUTH AFRICAN stocks rose 4% during the past six months and nearly 16% for the
year, as signs of economic improvement grew visible. Retail sales finally turned
positive, and the recent rise in the price of gold should also help the economy,
which appears to be undergoing a cyclical upswing. ABSA GROUP and SANLAM in this
market were among our largest portfolio holdings. ISRAEL is another important
market in the region, where we maintained several significant holdings. ORBOTECH
and TEVA PHARMACEUTICAL INDUSTRIES were our primary Israeli positions and were
also among the portfolio's largest holdings.
================================================================================
OUTLOOK
- --------------------------------------------------------------------------------
Global growth is broadening, commodity prices are firmer, stock valuations
are generally low, and the difference between emerging market bond yields and
U.S. Treasury bond yields is above average -- increasing the appeal of emerging
market securities. While several emerging stock markets may take a breather near
year-end, we maintain a positive outlook for their prospects in 2000. We are
encouraged that, despite the strong performance of many of these markets during
the past 12 months, stock valuations are still not excessive by historical
standards, and earnings growth should continue to recover briskly during the
year ahead.
Respectfully submitted,
/s/
Martin G. Wade
President
November 19, 1999
================================================================================
<PAGE>
T. Rowe Price Emerging Markets Stock 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
- ------------------------------------------------------------------------------
Samsung Electronics, South Korea 3.8%
- ------------------------------------------------------------------------------
Telefonos de Mexico (Telmex), Mexico 3.6
- ------------------------------------------------------------------------------
Telecomunicacoes Brasileiras (Telebras), Brazil 2.7
- ------------------------------------------------------------------------------
Zee Telefilms, India 2.5
- ------------------------------------------------------------------------------
Egypt Mobile Phone, Egypt 2.4
- ------------------------------------------------------------------------------
China Telecom, China 2.4
- ------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing, Taiwan 2.4
- ------------------------------------------------------------------------------
Korea Telecom, South Korea 1.9
- ------------------------------------------------------------------------------
Matav, Hungary 1.8
- ------------------------------------------------------------------------------
Hon Hai Precision, Taiwan 1.6
- ------------------------------------------------------------------------------
Orbotech, Israel 1.6
- ------------------------------------------------------------------------------
Yapi Kredi Bankasi, Turkey 1.5
- ------------------------------------------------------------------------------
Teva Pharmaceutical Industries, Israel 1.5
- ------------------------------------------------------------------------------
United Micro Electric, Taiwan 1.3
- ------------------------------------------------------------------------------
Industrial Credit & Investment Corp. of India, India 1.2
- ------------------------------------------------------------------------------
<PAGE>
Cipla, India 1.2
- ------------------------------------------------------------------------------
Elektrim, Poland 1.2
- ------------------------------------------------------------------------------
ABSA Group, South Africa 1.2
- ------------------------------------------------------------------------------
Ranbaxy Laboratories, India 1.2
- ------------------------------------------------------------------------------
OTPBank, Hungary 1.1
- ------------------------------------------------------------------------------
Hurriyet Gazette, Turkey 1.1
- ------------------------------------------------------------------------------
Haci Omer Sabanci, Turkey 1.0
- ------------------------------------------------------------------------------
Mahanagar Telephone, India 1.0
- ------------------------------------------------------------------------------
Sanlam, South Africa 1.0
- ------------------------------------------------------------------------------
Ceske Radiokomunikace, Czech Republic 1.0
- ------------------------------------------------------------------------------
Total 43.2%
Note: Table excludes reserves.
================================================================================
T. Rowe Price Emerging Markets Stock 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
------------------------------------
<PAGE>
This table shows how the fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Since Inception
Periods Ended 10/31/99 1 Year 3 Years Inception Date
- ---------------------- ------ ------- --------- ----
Emerging Markets Stock Fund 40.08% 0.06% 3.33% 3/31/95
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
- -----------------------------------------
For a share outstanding throughout each period
Financial Highlights
- --------------------
Year 3/31/95
Ended Through
10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 7.95 $ 11.08 $ 11.59 $ 10.48 $ 10.00
- --------------------------------------------------------------------------------
Investment activities
Net investment income (0.01) 0.05* 0.02* 0.02* 0.02*
Net realized and
unrealized gain (loss) 3.18 (3.06) (0.23) 1.08 0.44
- --------------------------------------------------------------------------------
Total from
investment activities 3.17 (3.01) (0.21) 1.10 0.46
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.04) - (0.04) (0.01) -
Net realized gain - (0.15) (0.30) - -
- --------------------------------------------------------------------------------
Total distributions (0.04) (0.15) (0.34) (0.01) -
- --------------------------------------------------------------------------------
Redemption fees added
to paid-in-capital - 0.03 0.04 0.02 0.02
- --------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 11.08 $ 7.95 $ 11.08 $ 11.59 $ 10.48
Ratios/Supplemental Data
Total return** 40.08%* (27.31)%* (1.60)%* 10.69%* 4.80%*
<PAGE>
- --------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.75%* 1.75%* 1.75%* 1.75%* 1.75%+*
- --------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets (0.14)%* 0.46%* 0.21%* 0.44%* 0.54%+*
- --------------------------------------------------------------------------------
Portfolio turnover rate 59.0% 54.5% 84.3% 41.7% 28.8%+
- --------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 108,418 $ 69,752 $119,285 $ 67,896 $ 14,399
- -------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions and payment of no redemption or account fees.
* Excludes expenses in excess of a 1.75% voluntary expense limitation in
effect through 10/31/99.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
- ----------------------------------------- October 31, 1999
PORTFOLIO OF INVESTMENTS
------------------------
Shares Value
In thousands
ARGENTINA 1.8%
Common Stocks 1.8%
Banco Frances del Rio de la Plata ADR (USD) 16,060 $ 351
- ----------------------------------------------------------------------------
Banco Rio de la Plata (Class B) ADR (USD) 32,630 420
- ----------------------------------------------------------------------------
Perez Companc (Class B) 65,982 397
- ----------------------------------------------------------------------------
Telecom Argentina (Class B) ADR (USD) 15,240 419
- ----------------------------------------------------------------------------
Telefonica de Argentina (Class B) ADR (USD) 15,860 407
- ----------------------------------------------------------------------------
Total Argentina (Cost $2,493) 1,994
- ----------------------------------------------------------------------------
BRAZIL==7.6%
Common Stocks 5.0%
Companhia Vale do Rio Doce ADR (USD) 32,000 637
- ----------------------------------------------------------------------------
Electricidade de Rio de Janeiro 1,235,672,000 247
<PAGE>
- ----------------------------------------------------------------------------
Pao de Acucar GDR (USD) 41,418 906
- ----------------------------------------------------------------------------
Tele Centro Sul Participacoes ADR (USD) 2,302 138
- ----------------------------------------------------------------------------
Tele Norte Leste Participacoes ADR (USD) 7,700 130
- ----------------------------------------------------------------------------
Telecomunicacoes Brasileiras ADR (USD) * 38,080 2,965
- ----------------------------------------------------------------------------
Telesp Participacpoes ADR (USD) 7,379 119
- ----------------------------------------------------------------------------
Unibanco GDR (USD) 12,000 278
- ----------------------------------------------------------------------------
5,420
- ----------------------------------------------------------------------------
Preferred Stocks 2.6%
Banco Itau 13,829,600 793
- ----------------------------------------------------------------------------
Brahma 675,141 431
- ----------------------------------------------------------------------------
Cia Energetica Minas Gerais 35,116,123 500
- ----------------------------------------------------------------------------
Petrol Brasileiros 6,662,000 1,060
- ----------------------------------------------------------------------------
Telecomunicacoes Brasileiras ADR (USD) * 39,922 2
- ----------------------------------------------------------------------------
Telecomunicacoes de Minas Gerais (Class B) 54,464 1
- ----------------------------------------------------------------------------
Telecomunicacoes do Rio de Janeiro * 1,287,988 18
- ----------------------------------------------------------------------------
2,805
- ----------------------------------------------------------------------------
Total Brazil (Cost $11,253) 8,225
- ----------------------------------------------------------------------------
CHILE==1.5%
Common Stocks 1.5%
Banco Santiago ADR (USD) 6,500 130
- ----------------------------------------------------------------------------
Chilectra ADR (144a) (USD) 24,241 424
- ----------------------------------------------------------------------------
Compania Cervecerias Unidas ADS (USD) 7,277 159
- ----------------------------------------------------------------------------
Compania de Telecomunicaciones de Chile
(Class A) ADR (USD) 13,955 $ 233
- ----------------------------------------------------------------------------
Embotelladora Andina ADR (USD) 16,358 266
- ----------------------------------------------------------------------------
Enersis ADS (USD) 19,847 446
<PAGE>
- ----------------------------------------------------------------------------
Total Chile (Cost $1,959) 1,658
- ----------------------------------------------------------------------------
CHINA==2.4%
Common Stocks 2.4%
China Telecom (HKD) 759,000 2,594
- ----------------------------------------------------------------------------
Total China (Cost $1,543) 2,594
- ----------------------------------------------------------------------------
CROATIA==0.5%
Common Stocks 0.5%
Pliva D D GDR (USD) 52,680 574
- ----------------------------------------------------------------------------
Total Croatia (Cost $875) 574
- ----------------------------------------------------------------------------
CZECH=REPUBLIC==1.4%
Common Stocks 1.4%
Ceske Radiokomunikace 33,228 1,073
- ----------------------------------------------------------------------------
SPT Telecom 31,841 481
- ----------------------------------------------------------------------------
Total Czech Republic (Cost $1,390) 1,554
- ----------------------------------------------------------------------------
EGYPT==3.8%
Common Stocks 3.8%
Al Ahram Beverage S A E (USD) * 14,453 426
- ----------------------------------------------------------------------------
Commercial International Bank (USD) * 39,270 485
- ----------------------------------------------------------------------------
Eesti Telekom GDR (USD) 34,200 542
- ----------------------------------------------------------------------------
Egypt Mobile Phone * 102,572 2,646
- ----------------------------------------------------------------------------
Total Egypt (Cost $2,497) 4,099
- ----------------------------------------------------------------------------
GREECE==2.7%
Common Stocks 2.7%
Alpha Credit Bank 6,323 484
- ----------------------------------------------------------------------------
Antenna TV ADR (USD) * 53,015 477
- ----------------------------------------------------------------------------
Hellenic Telecommunication 49,746 1,054
- ----------------------------------------------------------------------------
National Bank of Greece 8,024 575
- ----------------------------------------------------------------------------
Stet Hellas Telecommunications ADR (USD) * 15,730 $ 338
- ----------------------------------------------------------------------------
Total Greece (Cost $2,979) 2,928
- ----------------------------------------------------------------------------
<PAGE>
HONG=KONG==1.0%
Common Stocks 1.0%
Legend Holdings 164,000 176
- ----------------------------------------------------------------------------
New World China Land 618,400 287
- ----------------------------------------------------------------------------
Yanzhou Coal Mining 1,792,000 594
- ----------------------------------------------------------------------------
Total Hong Kong (Cost $1,417) 1,057
- ----------------------------------------------------------------------------
HUNGARY==3.2%
Common Stocks 2.1%
Fotex 135,301 46
- ----------------------------------------------------------------------------
Matav 333,333 1,940
- ----------------------------------------------------------------------------
Richter Gedeon GDS (USD) * 4,910 220
- ----------------------------------------------------------------------------
2,206
- ----------------------------------------------------------------------------
Preferred Stocks 1.1%
OTP Bank 26,969 1,225
- ----------------------------------------------------------------------------
1,225
- ----------------------------------------------------------------------------
Total Hungary (Cost $3,025) 3,431
- ----------------------------------------------------------------------------
INDIA==13.3%
Common Stocks 13.3%
Britannia Industries 51,000 976
- ----------------------------------------------------------------------------
Cipla 45,000 1,341
- ----------------------------------------------------------------------------
Global Telephone Systems 69,000 852
- ----------------------------------------------------------------------------
HCL Infosystems 38,000 381
- ----------------------------------------------------------------------------
Hindustan Lever 18,400 985
- ----------------------------------------------------------------------------
Housing Development Finance * 120,500 733
- ----------------------------------------------------------------------------
ICICI Limited ADR (USD) * 7,428 82
- ----------------------------------------------------------------------------
Industrial Credit & Investment Corp. of India 738,550 1,344
- ----------------------------------------------------------------------------
ITC 63,800 1,036
- ----------------------------------------------------------------------------
Mahanagar Telephone 279,000 1,102
<PAGE>
- ----------------------------------------------------------------------------
McDowell 259,000 859
- ----------------------------------------------------------------------------
Pentafour Software 50,000 699
- ----------------------------------------------------------------------------
Ranbaxy Laboratories 62,000 1,251
- ----------------------------------------------------------------------------
Zee Telefilms 26,600 $ 2,722
- ----------------------------------------------------------------------------
Total India (Cost $11,083) 14,363
- ----------------------------------------------------------------------------
ISRAEL==5.2%
Common Stocks 5.2%
ECI Telecom (USD) 17,440 508
- ----------------------------------------------------------------------------
Elbit * 19,082 250
- ----------------------------------------------------------------------------
Formula Systems * 12,130 304
- ----------------------------------------------------------------------------
Matav Cable System 32,640 753
- ----------------------------------------------------------------------------
Orbotech (USD) * 22,007 1,719
- ----------------------------------------------------------------------------
Partner Communication ADR (USD) * 33,650 530
- ----------------------------------------------------------------------------
Teva Pharmaceutical Industries ADR (USD) 32,890 1,591
- ----------------------------------------------------------------------------
Total Israel (Cost $4,600) 5,655
- ----------------------------------------------------------------------------
MEXICO==10.2%
Common Stocks 10.2%
Cemex (Represents 2 Class A and 1 Class B shares) * 208,540 944
- ----------------------------------------------------------------------------
Cifra (Class V) ADR (USD) * 22,113 348
- ----------------------------------------------------------------------------
Coca-Cola Femsa (Class L) ADR (USD) * 25,000 347
- ----------------------------------------------------------------------------
Femsa UBD
(Represents 1 Class B and 4 Series D shares) 298,040 967
- ----------------------------------------------------------------------------
Grupo Financiero Banamex * 313,000 783
- ----------------------------------------------------------------------------
Grupo Sanborns * 94,200 137
- ----------------------------------------------------------------------------
Gruma (Class B) * 64,888 85
- ----------------------------------------------------------------------------
Grupo Elektra, Participating Certificates
(Represents 1 Class L and 2 Class B shares) 706,000 338
- ----------------------------------------------------------------------------
<PAGE>
Grupo Industrial Maseca (Class B) 311,000 155
- ----------------------------------------------------------------------------
Grupo Iusacell ADR (USD) * 42,000 499
- ----------------------------------------------------------------------------
Grupo Modelo (Class C) 252,000 616
- ----------------------------------------------------------------------------
Grupo Televisa GDR (USD) * 17,000 723
- ----------------------------------------------------------------------------
Kimberly-Clark de Mexico (Class A) 150,000 481
- ----------------------------------------------------------------------------
Organizacion Soriana 70,000 259
- ----------------------------------------------------------------------------
Panamerican Beverages (Class A) (USD) 15,822 254
- ----------------------------------------------------------------------------
Telefonos de Mexico (Class L) ADR (USD) 45,995 3,933
- ----------------------------------------------------------------------------
TV Azteca ADR (USD) 37,500 152
- ----------------------------------------------------------------------------
Total Mexico (Cost $9,651) 11,021
- ----------------------------------------------------------------------------
PERU==0.4%
Common Stocks 0.4%
Credicorp (USD) 10,560 $ 112
- ----------------------------------------------------------------------------
Telefonica del Peru (Class B) ADR (USD) 28,160 326
- ----------------------------------------------------------------------------
Total Peru (Cost $804) 438
- ----------------------------------------------------------------------------
PHILIPPINES==0.6%
Common Stocks 0.6%
La Tondena Distillers 318,000 293
- ----------------------------------------------------------------------------
San Miguel (Class B) 268,070 388
- ----------------------------------------------------------------------------
Total Philippines (Cost $955) 681
- ----------------------------------------------------------------------------
POLAND==2.6%
Common Stocks 2.6%
Bank Rozwoju Eksportu 30,871 841
- ----------------------------------------------------------------------------
Computerland 15,397 205
- ----------------------------------------------------------------------------
Elektrim 154,685 1,338
- ----------------------------------------------------------------------------
Softbank 16,415 463
- ----------------------------------------------------------------------------
Total Poland (Cost $3,484) 2,847
- ---------------------------------------------------------------------------
<PAGE>
RUSSIA==1.0%
Common Stocks 1.0%
LUKoil (USD) 24,351 193
- ----------------------------------------------------------------------------
LUKoil ADR (USD) 30,350 941
- ----------------------------------------------------------------------------
Total Russia (Cost $3,208) 1,134
- ----------------------------------------------------------------------------
SOUTH=AFRICA==6.9%
Common Stocks 6.9%
ABSA Group 309,200 1,261
- ----------------------------------------------------------------------------
De Beers Centenary 29,600 808
- ----------------------------------------------------------------------------
JD Group 50,300 319
- ----------------------------------------------------------------------------
M Cell 555,300 1,062
- ----------------------------------------------------------------------------
Metropolitan Life 467,800 571
- ----------------------------------------------------------------------------
Rembrandt Group 37,000 277
- ----------------------------------------------------------------------------
Richemont Securities 27,800 $ 537
- ----------------------------------------------------------------------------
Sanlam 955,500 1,097
- ----------------------------------------------------------------------------
South African Breweries ADS (USD) * 55,491 488
- ----------------------------------------------------------------------------
Standard Bank Investment 308,600 1,055
- ----------------------------------------------------------------------------
Total South Africa (Cost $7,860) 7,475
- ----------------------------------------------------------------------------
SOUTH=KOREA==11.6%
Common Stocks 11.6%
Hana Bank 54,502 500
- ----------------------------------------------------------------------------
Housing & Commercial Bank 32,000 846
- ----------------------------------------------------------------------------
Korea Electric Power 33,000 966
- ----------------------------------------------------------------------------
Korea Electric Power ADR (USD) 40,000 630
- ----------------------------------------------------------------------------
Korea Telecom 22,800 1,534
- ----------------------------------------------------------------------------
Korea Telecom ADR (USD) * 16,000 564
- ----------------------------------------------------------------------------
Korean Air Lines 21,000 275
- ----------------------------------------------------------------------------
<PAGE>
LG Chemicals 25,000 756
- ----------------------------------------------------------------------------
LG Information & Communications 14,035 1,030
- ----------------------------------------------------------------------------
Samsung 25,000 396
- ----------------------------------------------------------------------------
Samsung Electronics 24,885 4,149
- ----------------------------------------------------------------------------
Shinhan Bank 47,000 498
- ----------------------------------------------------------------------------
South Korea Telecom 385 444
- ----------------------------------------------------------------------------
Total South Korea (Cost $7,810) 12,588
- ----------------------------------------------------------------------------
TAIWAN==12.9%
Common Stocks 12.9%
Acer Peripherals * 101,000 269
- ----------------------------------------------------------------------------
Asustek Computer GDR (USD) * 65,167 920
- ----------------------------------------------------------------------------
Asustek Computer GDR (144a) (USD) 127 2
- ----------------------------------------------------------------------------
Compal Electronics 219,892 738
- ----------------------------------------------------------------------------
D-Link 15,230 25
- ----------------------------------------------------------------------------
Far East Textile 318,774 436
- ----------------------------------------------------------------------------
Hon Hai Precision Industry * 210,800 1,442
- ----------------------------------------------------------------------------
Hon Hai Precision Industry GDR, (144a) (USD) * 19,936 324
- ----------------------------------------------------------------------------
Mosel Vitelic GDR (USD) * 68,000 736
- ----------------------------------------------------------------------------
Pacific Electric Wire * 413,000 199
- ----------------------------------------------------------------------------
Powerchip semiconductors GDR (USD) * 59,000 705
- ----------------------------------------------------------------------------
Powerchip semiconductors * 237,000 344
- ----------------------------------------------------------------------------
President Chain Stores 273,514 772
- ----------------------------------------------------------------------------
Ritek GDR (USD) * 36,000 $ 482
- ----------------------------------------------------------------------------
Siliconware Precision Industries 372,590 670
- ----------------------------------------------------------------------------
Systex * 142,000 450
- ----------------------------------------------------------------------------
<PAGE>
Taiwan Semiconductor Manufacturing * 579,540 2,576
- ----------------------------------------------------------------------------
United Micro Electric * 553,650 1,440
- ----------------------------------------------------------------------------
Winbond Electronics * 161,000 294
- ----------------------------------------------------------------------------
Winbond Electronics GDR (144a) (USD) * 37,400 682
- ----------------------------------------------------------------------------
Yageo 243,000 261
- ----------------------------------------------------------------------------
Yageo GDS (USD) * 38,000 204
- ----------------------------------------------------------------------------
Total Taiwan (Cost $9,831) 13,971
- ----------------------------------------------------------------------------
THAILAND==1.5%
Common Stocks 1.5%
Bangkok Bank * 291,500 680
- ----------------------------------------------------------------------------
Telecomasia 1,177,000 907
- ----------------------------------------------------------------------------
Total Thailand (Cost $1,644) 1,587
- ----------------------------------------------------------------------------
TURKEY==4.1%
Common Stocks 4.1%
Akbank 32,700,000 510
- ----------------------------------------------------------------------------
Haci Omer Sabanci 37,605,000 1,115
- ----------------------------------------------------------------------------
Hurriyet Gazete 155,921,278 1,184
- ----------------------------------------------------------------------------
Yapi Kredi Bankasi 114,386,200 1,665
- ----------------------------------------------------------------------------
Total Turkey (Cost $4,272) 4,474
- ----------------------------------------------------------------------------
VENEZUELA==0.5%
Common Stocks 0.5%
Compania Anonima Nacional Telefonos de Venezuela
(Class D) ADR (USD) 18,935 489
- ----------------------------------------------------------------------------
Total Venezuela (Cost $690) 489
- ----------------------------------------------------------------------------
SHORT-TERMINVESTMENTS==2.5%
Money Market Funds 2.5%
Reserve Investment Fund, 5.51% # 2,698,092 2,698
- ----------------------------------------------------------------------------
<PAGE>
Total Short-Term Investments (Cost $2,698) 2,698
- ----------------------------------------------------------------------------
=Total=Investments=in=Securities
99.2% of Net Assets (Cost $98,021) $ 107,535
Other Assets Less Liabilities 883
NET ASSETS $ 108,418
* Non-income producing
# Seven-day yield
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers - total of such securities at period-end amounts
to 1.32% of net assets.
ADR American depository receipt
ADS American depository share
GDR Global depository receipt
GDS Global depository share
HKD Hong Kong dollar
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
- ----------------------------------------- October 31, 1999
STATEMENT OF ASSETS AND LIABILITIES
-----------------------------------
In thousands
Assets
Investments in securities, at value (cost $98,021) $ 107,535
Other assets 9,600
Total assets 117,135
Liabilities
Total liabilities 8,717
NET ASSETS $ 108,418
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (23,240)
Net unrealized gain (loss) 9,042
Paid-in-capital applicable to 9,784,954 shares of $0.01 par
value capital stock outstanding; 2,000,000,000 shares of
the Corporation authorized 122,616
NET ASSETS $ 108,418
NET ASSET VALUE PER SHARE $ 11.08
The accompanying notes are an integral part of these financial statements.
<PAGE>
================================================================================
T. Rowe Price Emerging Markets Stock Fund
- -----------------------------------------
STATEMENT OF OPERATIONS
-----------------------
In thousands
Year
Ended
10/31/99
==Investment=Income
Dividend (net of foreign taxes of $117) $ 1,245
Interest 186
- ----------------------------------------------------------------------------
Total income 1,431
- ----------------------------------------------------------------------------
Expenses
Investment management 962
Shareholder servicing 341
Custody and accounting 146
Prospectus and shareholder reports 47
Legal and audit 24
Registration 18
Directors 5
Miscellaneous 12
- ----------------------------------------------------------------------------
Total expenses 1,555
- ----------------------------------------------------------------------------
Net investment income (124)
- ----------------------------------------------------------------------------
Realized=and=Unrealized=Gain=(Loss)
Net realized gain (loss)
Securities (net of foreign taxes of $34) (348)
Foreign currency transactions (244)
Net realized gain (loss) (592)
Change in net unrealized gain or loss on securities
(net of deferred foreign taxes of $462) 29,048
Net realized and unrealized gain (loss) 28,456
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 28,332
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Emerging Markets Stock Fund
- -----------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
In thousands
Year
Ended
10/31/99 10/31/98
Increase (Decrease) in Net Assets
Operations
Net investment income $ (124) $ 473
Net realized gain (loss) (592) (23,172)
Change in net unrealized gain or loss 29,048 (6,088)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 28,332 (28,787)
- --------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (352) -
Net realized gain - (1,562)
- --------------------------------------------------------------------------------
Decrease in net assets from distributions (352) (1,562)
- --------------------------------------------------------------------------------
Capital share transactions *
Shares sold 44,491 33,862
Distributions reinvested 332 1,518
Shares redeemed (34,186) (54,808)
Redemption fees received 49 244
- --------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 10,686 (19,184)
- --------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period 38,666 (49,533)
Beginning of period 69,752 119,285
End of period $ 108,418 $ 69,752
================================================================================
*Share information
Shares sold 4,500 3,277
Distributions reinvested 42 133
Shares redeemed (3,529) (5,401)
- --------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 1,013 (1,991)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Emerging Markets Stock Fund
- ----------------------------------------- October 31, 1999
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
================================================================================
T. Rowe Price International Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The Emerging Markets Stock Fund (the
fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on March 31,
1995.
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.
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
================================================================================
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Emerging Markets At October 31, 1999, the fund held 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.
Securities Lending The fund lends its securities to approved brokers to
earn additional income and receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a money
market pooled account by the fund's lending agent. Collateral is maintained over
the life of the loan in an amount not less than 100% of the value of loaned
securities. Although risk is mitigated by the collateral, the fund could
experience a delay in recovering its securities and a possible loss of income or
value if the borrower fails to return them. At October 31, 1999, the value of
loaned securities was $4,596,000; aggregate collateral consisted of $4,621,000
in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $58,078,000 and $50,352,000, respectively, for the year
ended October 31, 1999.
================================================================================
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. As of October 31, 1999, the fund has capital loss carryforwards
for federal income tax purposes of $23,125,000, of which $22,811,000 expires in
2006 and $314,000 expires in 2007. The fund intends to retain gains realized in
future periods that may be offset by available capital loss carryforwards.
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 year ended October 31, 1999. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
<PAGE>
================================================================================
Undistributed net investment income $ 168,000
Undistributed net realized gain 431,000
Paid-in-capital (599,000)
================================================================================
At October 31, 1999, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$98,021,000. Net unrealized gain aggregated $9,514,000 at period-end, of which
$23,290,000 related to appreciated investments and $13,776,000 to depreciated
investments.
================================================================================
NOTE 4 - FOREIGN TAXES
================================================================================
The fund is subject to foreign income taxes imposed by certain countries in
which it invests. Foreign income taxes are accured by the fund and withheld from
dividend and interest income.
Gains realized upon disposition of Indian securities held by the fund are
subject to capital gains tax in India. The tax on realized gains is paid prior
to repratriation of sales proceeds. A deferred tax liability is accrued on net
unrealized gains, which totaled $462,000 at October 31, 1999.
================================================================================
NOTE 5 - 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, of which $107,000 was payable
at October 31, 1999. The fee is computed daily and paid monthly, and consists of
an individual fund fee equal to 0.75% 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 year 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 was
required to bear any expenses through October 31, 1999, which would cause the
fund's ratio of total expenses to average net assets to exceed 1.75%.
Thereafter, through October 31, 2001, the fund is required to reimburse the
manager for these expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement without causing the
fund's ratio of total expenses to average net assets to exceed 1.75%. Pursuant
to this agreement, $57,000 of unaccrued 1998-1999 fees were repaid during the
year ended October 31, 1999.
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 $385,000 for the year ended
October 31, 1999, of which $42,000 was payable at period-end.
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum)
may invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum International Fund
held approximately 2.6% of the outstanding shares of the fund at October 31,
1999. For the year then ended, the fund was allocated $12,000 of Spectrum
expenses, $2,000 of which 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 year ended October 31, 1999, totaled $123,000
and are reflected as interest income in the accompanying Statement of
Operations.
During the year ended October 31, 1999, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $10,023,000 with
certain affiliates of the manager and paid commissions of $37,000 related
thereto.
================================================================================
<PAGE>
T. Rowe Price Emerging Markets Stock Fund
- -----------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
TO THE BOARD OF DIRECTORS T. ROWE PRICE INTERNATIONAL FUNDS, INC. AND
SHAREHOLDERS OF EMERGING MARKETS STOCK FUND
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Emerging Markets Stock 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 each
of the fiscal periods presented, 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 audits. We conducted our audits 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 audits, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 1999
================================================================================
T. Rowe Price Emerging Markets Stock 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 $153,000 and foreign
taxes paid of $153,000.
================================================================================
<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.
<PAGE>
T. ROWE PRICE REPORT Quarterly
investment newsletter discussing markets and
financial strategies.
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
<PAGE>
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
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
<PAGE>
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
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
<PAGE>
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.
================================================================================
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
<PAGE>
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
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. F05-050 10/31/99
