<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price
- --------------------------------------------------------------------------------
Semiannual Report
Foreign Bond Funds
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
FOREIGN BOND FUNDS
- -------------------------
* After a strong 1998, developed country bonds fell sharply in the first half
of 1999 as U.S. growth remained strong and the euro was weak against the
dollar.
* Emerging market bonds rebounded strongly from last year's steep declines,
helped by indications of recovery in Asia and stability in Latin America.
* The International Bond and Global Bond funds posted negative returns for
the first half, while the Emerging Markets Bond Fund delivered a solid
gain.
* Despite this difficult period, the outlook for global bonds remains
positive, and the struggling euro is likely to firm in the second half.
================================================================================
FELLOW SHAREHOLDERS
================================================================================
The first six months of 1999 were difficult for investors in high-quality
bonds around the world, as rising interest rates and a weak euro produced
negative total returns. Whereas in 1998 investors enjoyed strong returns driven
by a flight to quality in U.S. and European government bonds, those trends
unraveled in the first half.
With the U.S. economy and, therefore, the dollar stronger than expected,
U.S. Treasuries and European government bonds -- especially those denominated in
euros -- lost their safe-haven appeal and fell sharply. Last year's villains,
emerging market bonds, became this year's heroes as the outlook for emerging
economies improved. Given this backdrop, the Global Bond Fund and the
International Bond Fund posted sharp declines in the period, while the Emerging
Markets Bond Fund delivered a solid gain.
================================================================================
<PAGE>
MARKET ENVIRONMENT
================================================================================
DEVELOPED MARKETS PERFORMANCE
-----------------------------
In Local In U.S.
6 Months ended 6/30/99 Currency Dollars
---------------------- -------- -------
Australia -2.37% 5.35%
France -1.27 -13.29
Germany -0.69 -12.79
Italy -1.17 -13.21
Japan 2.58 -4.41
Spain -1.20 -13.23
United Kingdom -1.94 -7.10
United States -2.77 -2.77
Source: J.P. Morgan.
================================================================================
Every developed market except Australia posted a negative total return in
U.S. dollar terms for the period, as shown in the table. (Australia benefited
from the strength of its dollar.) The rise of the U.S. dollar reflected the
dynamic performance of the U.S. economy, particularly compared with the
lackluster -- but improving -- economies elsewhere. While the rise in bond
yields was greatest in the U.S. -- where the 30-year Treasury yield rose from
about 5% to above 6% -- euro zone bonds were hit hardest (in dollar terms) due
to the surprising 13% decline of the euro against the dollar. (The Japanese yen
also fell more than 6.5%.) Fear of a reawakening of inflation also rattled fixed
income markets in the first half, but despite U.S. unemployment near 4% and
rising oil prices, we have yet to see statistical evidence of it.
The euro was greeted optimistically early on, but went into a steady slide
in mid-January, hurt by weak European economies, political turmoil, and war in
the Balkans. Euro zone economies showed signs of recovery in the second quarter,
and with inflation stable at about 1%, prospects for bonds were good. But
falling U.S. bonds dragged European government bonds lower, as higher U.S.
yields made Treasuries more attractive by comparison. The yield on 10-year euro
bonds rose more than 50 basis points in June (100 basis points equal one
percentage point).
An interesting feature of EMU has been the rapid development of the
European nongovernment markets, especially asset-backed and corporate bonds. The
latter was boosted by increased merger and acquisition activity spurred by the
advent of the single currency. Investor demand in these markets has been robust.
Japanese GDP grew at a surprising annualized rate of nearly 8% in the first
quarter. This was much heralded by investors, but in reality GDP was flat
compared with the year-earlier period. There are welcome signs that the Japanese
economy is bottoming, though it is too early to predict a decent recovery, and
also encouraging signs of corporate restructuring. The attendant job loss could
dampen consumer demand and pressure the government to keep borrowing to
stimulate the economy. Despite these concerns, Japan was one of the
better-performing bond markets.
<PAGE>
================================================================================
INFORMATION ON YEAR-END DISTRIBUTIONS
-------------------------------------
To help you with tax planning, we try to give you
a good idea of the per-share income and capital
gain amounts our funds may distribute near
year-end. In late October, we will provide
estimates of these amounts, which will be paid on
December 16, 1999, to shareholders of record on
December 14. These preliminary numbers will be
included in The Price Report mailing to
shareholders in late October and will also be
available on our Web siteNwww.troweprice.com. We
hope that these preliminary numbers will be useful
to you in approximating the income and capital
gains taxes you may pay on distributions to
taxable accounts. If your fund distributed any
capital gains earlier in 1999, you can find the
amounts on your statements and should include them
in your tax planning calculations. Please keep in
mind that the numbers are not final and are likely
to be revised before the December 14 declaration
and record date. As the fall progresses, you may
want to check our Web site for revisions. If you
would like information on tax matters relating to
mutual funds, please visit our Web site to
download our Insights report, Tax Information for
Mutual Fund Investors, or call 1-800-225-5132 to
request a copy.
============================================================
EMERGING MARKETS PERFORMANCE
----------------------------
In U.S.
6 Months Ended 6/30/99 Dollars
---------------------- -------
Emerging Markets Bond Index Plus 10.57%
Brady Indexes (by issuer): *
Argentina 0.18
Brazil 17.35
Mexico 3.35
Poland -3.36
Venezuela 20.86
* Brady bonds are restructured debt obligations of
many emerging market countries that enable these
nations to repay loans while they implement
economic reforms. The bonds are denominated in
U.S. dollars and have extended maturities and
lower interest rates.
Source: J.P. Morgan.
================================================================================
<PAGE>
Emerging markets again endured a roller coaster period. Despite Brazil's
currency devaluation in January, emerging market bonds posted a solid return,
helped by double-digit nominal yields and a recovery in prices. The ample
liquidity provided by central banks around the world in late 1998 and early 1999
contributed to a bounce in emerging market debt. Investors were also encouraged
by signs of economic recovery in Asia and by the so far limited impact of
Brazil's devaluation on inflation, interest rates, and regional economies.
Better funding conditions from the International Monetary Fund caused a nearly
100% rebound in Russian bonds, mostly in the second quarter.
================================================================================
GLOBAL BOND FUND
================================================================================
PERFORMANCE COMPARISON
----------------------
Periods Ended 6/30/99 6 Months 12 Months
--------------------- -------- ---------
Global Bond Fund -8.21% -0.56%
J.P. Morgan Global Government
Bond Index -7.19 3.63
================================================================================
Performance was disappointing for the past six and 12 months, weighed down
both by falling U.S. bond prices and the weak euro. Your fund's returns were
negative, as shown in the table, and were behind our benchmark, which was also
weak. Results versus the index were hurt early in the first half by our
overweighting in the euro and in long-duration bonds in the U.S. and Europe. We
subsequently scaled back to a neutral position in the euro versus the index and
reduced duration from 6.4 years six months ago to 5.9 years by selling
longer-term U.S. bonds. (Duration measures a bond fund's sensitivity to interest
rates. For example, the share price of a fund with a duration of six years will
rise about 6% in response to a one-percentage-point decline in rates, and fall
about 6% in response to an equivalent increase in rates.) Credit quality
remained very high at AA+. (See the Portfolio Highlights table on page 10.) At
the end of the period, the portfolio's total euro exposure stood at 35.7%
compared with 41% six months ago. We remain optimistic about the euro and
European bond markets, as discussed in the report's Outlook section. We took
advantage of the expansion of the European credit markets (a major benefit of
the new single currency) to build a position in nongovernment bonds,
particularly high-yield (below investment-grade) bonds. In contrast to the
investment-grade sector, new high-yield issues were priced attractively to
promote interest in this fledgling asset class.
[Global Bond Fund Geographic Diversification pie chart shown here with the
following wedges (in order): United States 36%; Germany, 13%; United Kingdom,
8%; Australia, 6%; France, 5%; Netherlands 4%; Sweden, 4%; and Other and
Reserves, 24%.]
Unflagging U.S. growth and signs of recovery in Japan and the emerging
markets hurt high-quality U.S. bonds, as investors worried that the Federal
Reserve would take back the three monetary easing moves it instituted last year
in a successful effort to restore confidence in the markets. The yield on
10-year Treasuries rose about 1.25 percentage points. Then on June 30 the Fed
raised its key federal funds rate by a quarter of a percentage point, but
announced a neutral stance on future increases. This was interpreted as a signal
that further rate increases are not inevitable but are still likely unless tight
conditions in the labor markets ease. We reduced our allocation to U.S. bonds to
36%, from about 42% at year-end.
<PAGE>
We retained our underweighting in both Japanese bonds and the yen. The
fund's total exposure to Japanese bonds stood at 1% on June 30, while exposure
to the yen was 10.6%. We increased exposure to Australian bonds (6% of net
assets) and the Australian dollar, to a slight overweight position, and this
also benefited shareholders. Australia seems to have come through the Asian
troubles of the past two years virtually unscathed, and its economy and currency
were helped by the recent revival in commodity prices. The fund also benefited
in the first half from its exposure to emerging market bonds (7.6% of net assets
on June 30), which are not represented in the index. The attractive nominal
yields available in emerging market debt offset its higher volatility.
================================================================================
INTERNATIONAL BOND FUND
================================================================================
PERFORMANCE COMPARISON
----------------------
Periods Ended 6/30/99 6 Months 12 Months
--------------------- -------- ---------
International Bond Fund -9.60% 1.18%
J.P. Morgan Non-U.S. Dollar
Government Bond Index -9.33 4.47
================================================================================
As with the Global Bond Fund, performance was also disappointing for the
periods under review. The two portfolios are run similarly, with the difference
that the International Bond Fund generally does not invest in the U.S., and does
not attempt, for the most part, to hedge against currency risk. (The U.S. bonds
shown in the chart on page 6 are not denominated in U.S. dollars.) Indeed, a key
reason for choosing the International Bond Fund over the Global Bond Fund is to
protect a portion of your assets from possible weakness in the U.S. dollar. This
strategy was not beneficial in the past six months.
The fund returned -9.60% in the six-month period, in line with the
benchmark, and managed a slight 1.18% gain for the past 12 months, which lagged
the benchmark. Early in the first half, we overweighted the euro and
longer-duration bonds in Europe, which were negatives for performance. We then
moved to a more neutral position in the euro versus the index, and reduced
duration. (Duration measures a bond fund's sensitivity to interest rates. For
example, the share price of a fund with a duration of six years will rise about
6% in response to a one-percentage-point decline in rates, and fall about 6% in
response to an equivalent increase in rates.) Last year, the fund had benefited
from our longer duration in Europe, as rates fell. Since then, we have trimmed
duration from 6.1 years to 5.9 years. Credit quality remained excellent at AA+.
(See the Portfolio Highlights table on page 10.)
Our total euro exposure as of June 30 stood at 54.3%, compared with 56% six
months ago. We remain positive about the euro and European bond markets, as we
discuss in the report's Outlook section. Last year's move to increase exposure
to bonds in Greece and duration in Sweden and Denmark was helpful, since they
performed well in relative terms (those three countries did not participate in
the first round of EMU). Subsequently, we reduced our positions.
<PAGE>
[International Bond Fund Geographic Diversification chart pie chart shown
here with the following wedges (in order): Germany, 19%; United Kingdom, 12%;
France, 7%; Supranational*, 8%; Sweden, 6%; Australia, 5%; United States, 7%;
and Other and Reserves, 36%.] * Bonds issued by multigovernment agencies such as
the World Bank.
An important benefit of the euro has been the significant expansion of the
corporate bond sector of the European credit markets. To take advantage of this,
we built a position in nongovernment bonds, particularly high-yield (below
investment-grade) bonds. Debt offerings in this sector were attractively priced
(unlike many in the investment-grade sector) to promote interest in this
relatively new asset class.
We remained underweight in Japanese bonds and somewhat less so in the yen.
The fund's total holdings of Japanese bonds stood at 2.8% on June 30, while
exposure to the yen was 15.9%. Exposure to Australian bonds (5% of net assets)
and the Australian dollar was increased to a slight overweight position, and
this also benefited shareholders. The Australian dollar has been one of
strongest currencies in the world this year, and the country was relatively
unscathed by the Asian crisis. Our allocation to emerging market debt (8% of net
assets on June 30), which is not represented in the index, was a modest positive
for per-formance. These securities hurt us last year, but the attractive yields
available on emerging market bonds help offset their high volatility.
================================================================================
EMERGING MARKETS BOND FUND
================================================================================
PERFORMANCE COMPARISON
----------------------
Periods Ended 6/30/99 6 Months 12 Months
--------------------- -------- ---------
Emerging Markets Bond Fund 7.84% -14.98%
J.P Morgan Emerging Markets
Bond Index Plus 10.57 -4.27
================================================================================
Emerging market debt recovered strongly in the first half, helped by the
U.S. Fed's rate cuts last fall, improved global economic activity, recovering
oil prices, and some positive steps by the Brazilian government. Your fund
gained 7.84% for the period, which was solid in absolute terms but lagged the
benchmark. The improved outlook for emerging economies was not enough to make up
for last year's losses in the sector, and the fund's deeply negative return for
the past 12 months also trailed the index. Your fund's shortfall relative to the
index was due to our more defensive strategy of limiting holdings in the big
Latin debtor nations of Brazil, Argentina, and Mexico. These countries account
for a huge portion of the index -- partly by virtue of the sheer size of their
government debt. Brazil recovered strongly following its devaluation in January.
The Brazilian congress was finally persuaded to pass key fiscal reforms, a new
IMF aid package was agreed upon, and a new, credible central bank chief was
appointed. These steps helped interest rates come down to about 20%. Inflation
did not spiral out of control, and the Mexican economy remained strong thanks to
its ties to the U.S. As a result, Latin assets, particularly Brazilian debt,
rose sharply. Although we held a sizable 18% position, results would have
benefited from an even larger exposure.
<PAGE>
[Emerging Market Geographic Diversification pie chart shown here with the
following wedges (in order): Brazil, 18%; Argentina, 15%; Mexico, 12%; Bulgaria,
9%; Russia, 9%; Venezuela, 6%; Nigeria, 5%; and Other and Reserves, 26%.]
Performance for the six months was helped by our position in Russia, where
bonds nearly doubled after being virtually wiped out last year. Our Bulgarian
bonds also did well. Exposure to Nigeria and Peru hurt performance in the first
half.
Interest rate sensitivity was neutral for most of the period. We short-ened
duration to 4.6 years from 5.1 years at the end of 1998. (Duration measures a
bond fund's sensitivity to interest rates. For example, the share price of a
fund with a duration of five years will rise about 5% in response to a
one-percentage-point decline in rates, and fall about 5% in response to an
equivalent increase in rates.) Credit quality declined slightly to BB, from BB+
six months ago. (See the Portfolio Highlights table on page 11.)
The fund's overweighting in Russia, where we had 19% of net assets a year
ago, hurt performance for the 12-month period, since it was Russia's default and
devaluation that triggered a global financial crisis. We sharply cut exposure to
Russian debt to about 3.5% of net assets by the end of the year, but have since
increased it modestly to about 9% of net assets as of June 30, helped by the
dramatic rebound in Russian bond prices.
We reduced exposure to Nigeria, Poland, Peru, and Argentina in the first
half, but we maintained our diversified approach with 21 countries represented
in the portfolio, versus just 15 in the J.P. Morgan Emerging Markets Bond Index
Plus. We have tried to find values in a broader array of countries, especially
in emerging Europe and Africa, not because we are negative on Latin America, but
because we believe broader diversification in such a volatile investment area is
more beneficial for shareholders in the long run.
================================================================================
OUTLOOK
================================================================================
Somewhat battered but unbowed by the painful experience of the past six
months, we remain positive on bonds in general and on Europe and the euro, in
particular. The new currency has become undervalued, in our view, following its
steady decline toward parity with the U.S. dollar. However, a rising, record
trade deficit in the U.S. will likely constrain the economic expansion and sap
some of the dollar's strength. More effective political leadership in Germany
and the European Commission should enhance growth prospects in Europe, where
recent economic data have been encouraging. An improvement in the relative
economic strength of the EMU compared with the U.S., the U.K., and Japan should
also help the euro find its feet. Increasing price transparency on the Continent
as a result of the euro should hold down inflation, allowing the European
Central Bank to keep short-term rates low. We believe these developments will
provide a positive backdrop for European bond markets.
<PAGE>
Our outlook is cautious on the yen and skeptical on Japanese bonds, where
we expect a huge new supply of government bonds, as mentioned. We continue to
find emerging market bonds attractive due to their high yields and improved
global growth prospects, though renewed political opposition to fiscal reforms
in Latin America is cause for concern. Russia appears to be serious about
undertaking a level of reform sufficient to ensure continued aid from the West.
One wild card for the global bond markets is the approach of 2000. Whether
or not there is any actual economic impact, concern about potential Y2K computer
glitches is expected to hurt liquidity in the bond markets, especially for
lower-quality debt. Major investment banks will be pruning inventories of such
bonds in advance of the New Year to avoid potential problems. By the same token,
we anticipate a slowdown in business spending ahead of Y2K, which is positive
for inflation and interest rates.
All in all, our outlook is positive. Inflation is likely to stay contained
around the world, which is favorable for bonds. We expect cost pressures from
the long-running U.S. expansion to abate and do not anticipate significant
inflationary pressures from rising commodity prices. In addition, a good deal of
global excess manufacturing capacity remains, which suggests the disinflationary
trend of recent years could continue. At the same time, productivity remains
high in the U.S. economy, reflecting declining unit labor costs. After the
sell-off in high-quality bonds in the first half, bond yields look attractive in
both real (after inflation) and nominal terms.
Respectfully submitted,
/s/
Peter B. Askew
Executive Vice President
July 22, 1999
================================================================================
<PAGE>
T. Rowe Price Foreign Bond Funds
- --------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
KEY STATISTICS
--------------
12/31/98 6/30/99
-------- -------
GLOBAL BOND FUND
- ----------------
Price Per Share $10.51 $9.34
Dividends Per Share
For 6 months 0.25 0.21
For 12 months 0.53 0.47
Dividend Yield *
For 6 months 5.01% 4.48%
For 12 months 5.40 4.81
Weighted Average Maturity (years) 10.0 9.4
Weighted Average Effective Duration (years) 6.4 5.9
Weighted Average Quality ** AA+ AA+
International Bond Fund
Price Per Share $10.46 $9.17
Dividends Per Share
For 6 months 0.25 0.19
For 12 months 0.51 0.44
Dividend Yield *
For 6 months 4.91% 4.12%
For 12 months 5.31 4.57
Weighted Average Maturity (years) 9.0 8.5
Weighted Average Effective Duration (years) 6.1 5.9
Weighted Average Quality ** AA+ AA+
================================================================================
T. Rowe Price Foreign Bond Funds
- --------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
KEY STATISTICS
--------------
12/31/98 6/30/99
-------- -------
EMERGING MARKETS BOND FUND
- --------------------------
Price Per Share $9.23 $9.38
Dividends Per Share
For 6 months 0.65 0.55
For 12 months 1.31 1.20
Dividend Yield *
For 6 months 13.42% 12.55%
For 12 months 11.83 13.44
Weighted Average Maturity (years) 14.1 14.3
Weighted Average Effective Duration (years) 5.1 4.6
Weighted Average Quality ** BB+ BB
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the fund's net asset value per share at the end of the
period.
** Based on T. Rowe Price research.
================================================================================
<PAGE>
T. Rowe Price Foreign Bond Funds
- --------------------------------
PERFORMANCE COMPARISON
- ----------------------
These charts show the value of a hypothetical $10,000 investment in each
fund over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index. An
index return does not reflect expenses, which have been deducted from the fund's
return.
[Global Bond Fund SEC chart shown here]
[International Bond Fund SEC chart shown here]
[Emerging Markets Bond Fund SEC chart shown here]
AVERAGE ANNUAL COMPOUND TOTAL RETURN
------------------------------------
This table shows how each 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 6/30/99 1 Year 5 Years 10 Years Inception Date
- --------------------- ------ ------- -------- --------- ----
Global Bond Fund -0.56% 5.64% - 5.91% 12/31/90
International Bond Fund 1.18 5.45 8.67% 8.02 9/10/86
Emerging Markets Bond Fund -14.98 - - 12.04 12/30/94
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 Global Bond Fund
- ------------------------------
Unaudited
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
6 Months Year
Ended Ended
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
NET ASSET VALUE
Beginning of period $ 10.51 $ 9.90 $ 10.35 $ 10.26 $ 9.22 $ 10.08
- --------------------------------------------------------------------------------------------------------
Investment activities
Net investment income 0.20* 0.53* 0.54* 0.56* 0.59* 0.54*
Net realized and
unrealized gain (loss) (1.05) 0.61 (0.39) 0.09 1.04 (0.84)
- --------------------------------------------------------------------------------------------------------
Total from
investment activities (0.85) 1.14 0.15 0.65 1.63 (0.30)
- --------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.21) (0.53) (0.49) (0.56) (0.59) (0.51)
Net realized gain (0.11) - (0.11) - - (0.02)
Tax return of capital - - - - - (0.03)
- --------------------------------------------------------------------------------------------------------
Total distributions (0.32) (0.53) (0.60) (0.56) (0.59) (0.56)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 9.34 $ 10.51 $ 9.90 $ 10.35 $ 10.26 $ 9.22
==Ratios/Supplemental=Data==============================================================================
Total return= (8.21)%* 11.93%* 1.61%* 6.59%* 18.13%* (3.06)%*
- --------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.00%*++ 1.00%* 1.20%* 1.20%* 1.20%* 1.20%*
- --------------------------------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 4.23%*++ 5.29%* 5.38%* 5.48%* 6.08%* 5.57%*
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate 136.2%++ 136.2% 153.2% 262.6%+ 290.7% 254.1%
- --------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 35,207 $ 41,926 $ 44,069 $ 55,869 $ 28,207 $ 36,516
- --------------------------------------------------------------------------------------------------------
= 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.
* Excludes expenses in excess of a 1.20% voluntary expense limitation in
effect through 12/31/97 and a 1.00% voluntary expense limitation in effect
through 12/31/00.
+ Excludes the effect of the acquisition of the Short-Term Global Income
Fund's assets.
++ Annualized
</TABLE>
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price International Bond Fund
- -------------------------------------
Unaudited
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
6 Months Year
Ended Ended
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
NET ASSET VALUE
Beginning of period $ 10.46 $ 9.58 $ 10.46 $ 10.46 $ 9.34 $ 10.34
- ------------------------------------------------------------------------------------------------------
Investment activities
Net investment income 0.18 0.51 0.54 0.60 0.62 0.60
Net realized and
unrealized gain (loss) (1.17) 0.88 (0.87) 0.11 1.24 (0.79)
- ------------------------------------------------------------------------------------------------------
Total from
investment activities (0.99) 1.39 (0.33) 0.71 1.86 (0.19)
- ------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.19) (0.51) (0.46) (0.60) (0.62) (0.60)
Net realized gain (0.11) - (0.09) (0.11) (0.12) (0.21)
- ------------------------------------------------------------------------------------------------------
Total distributions (0.30) (0.51) (0.55) (0.71) (0.74) (0.81)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 9.17 $ 10.46 $ 9.58 $ 10.46 $ 10.46 $ 9.34
==Ratios/Supplemental=Data============================================================================
Total return* (9.60)% 15.03% (3.17)% 7.13% 20.30% (1.84)%
- ------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.91%+ 0.88% 0.86% 0.87% 0.90% 0.98%
- ------------------------------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 3.93%+ 5.19% 5.38% 5.86% 6.10% 6.07%
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate 95.1%+ 128.9% 155.9% 234.0% 237.1% 345.2%
- ------------------------------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 843 $ 926 $ 826 $ 969 $ 1,016 $ 738
- ------------------------------------------------------------------------------------------------------
* 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
</TABLE>
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Emerging Markets Bond Fund
- ----------------------------------------
Unaudited
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
6 Months Year 12/30/94
Ended Ended Through
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95
NET ASSET VALUE
Beginning of period $ 9.23 $ 13.71 $ 12.97 $ 10.67 $ 10.00
- --------------------------------------------------------------------------------
Investment activities
Net investment income 0.43 1.31* 1.16* 1.00* 1.03*
Net realized and unrealized
gain (loss) 0.27 (4.29) 0.97++ 2.72 1.38
- --------------------------------------------------------------------------------
Total from investment
activities 0.70 (2.98) 2.13 3.72 2.41
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.55) (1.31) (1.15) (1.01) (1.02)
Net realized gain - (0.19) (0.24) (0.41) (0.72)
- --------------------------------------------------------------------------------
Total distributions (0.55) (1.50) (1.39) (1.42) (1.74)
- --------------------------------------------------------------------------------
NET ASSET VALUE
================================================================================
End of period $ 9.38 $ 9.23 $ 13.71 $ 12.97 $ 10.67
================================================================================
Ratios/Supplemental=Data========================================================
Total return= 7.84% (23.09)%* 16.83%* 36.77%* 25.81%*
- --------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.25%+ 1.25%* 1.25%* 1.25%* 1.25%*
- --------------------------------------------------------------------------------
Ratio of net investment income
to average net assets 9.52%+ 11.52%* 8.61%* 8.37%* 10.20%*
- --------------------------------------------------------------------------------
Portfolio turnover rate 70.1%+ 78.4% 87.6% 168.7% 273.5%
- --------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 167,908 $ 148,111 $ 113,419 $ 39,862 $ 9,989
- --------------------------------------------------------------------------------
= 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.
* Excludes expenses in excess of a 1.25% voluntary expense limitation in
effect through 12/31/00.
++ The amount presented is calculated pursuant to a methodology prescribed by
the Securities and Exchange Commission for a share outstanding throughout
the period. This amount is inconsistent with the fund's aggregate gains and
losses because of the timing of sales and redemptions of fund shares in
relation to fluctuating market values for the investment portfolio.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Global Bond Fund
- ------------------------------
Unaudited June 30, 1999
PORTFOLIO OF INVESTMENTS
- ------------------------
Par/Shares Value
In thousands
ARGENTINA=0.7%=================================================================
Government Bonds 0.7%
Republic of Argentina
FRB, 5.938%, 3/31/05 USD 70 $ 60
- -------------------------------------------------------------------------------
Par, FRN, 6.00%, 3/31/23 275 176
- -------------------------------------------------------------------------------
Total Argentina (Cost $266) 236
- -------------------------------------------------------------------------------
AUSTRALIA=6.0%=================================================================
Government Bonds 6.0%
Commonwealth of Australia
9.00%, 9/15/04 AUD 2,030 1,524
- -------------------------------------------------------------------------------
8.75%, 8/15/08 780 603
- -------------------------------------------------------------------------------
Total Australia (Cost $2,188) 2,127
- -------------------------------------------------------------------------------
BRAZIL=0.6%====================================================================
Government Bonds 0.6%
Federative Republic of Brazil (Class C),
8.00%, 4/15/14 USD 299 195
- -------------------------------------------------------------------------------
Total Brazil (Cost $192) 195
- -------------------------------------------------------------------------------
BULGARIA=1.2%==================================================================
Government Bonds 1.2%
National Republic of Bulgaria
FLIRB, STEP, 2.50%, 7/28/12 660 403
- -------------------------------------------------------------------------------
Total Bulgaria (Cost $399) 403
- -------------------------------------------------------------------------------
<PAGE>
CANADA=2.4%====================================================================
Government Bonds 2.4%
Government of Canada, 5.00%, 9/1/04 CAD 780 521
- -------------------------------------------------------------------------------
Province of Alberta, 8.00%, 3/1/00 450 311
- -------------------------------------------------------------------------------
Total Canada (Cost $861) 832
- -------------------------------------------------------------------------------
CYPRUS=0.4%====================================================================
Government Bonds 0.4%
Republic of Cyprus, 5.375%, 7/28/08 EUR 150 152
- -------------------------------------------------------------------------------
Total Cyprus (Cost $158) 152
- -------------------------------------------------------------------------------
DENMARK=2.9%===================================================================
Government Bonds 2.9%
Kingdom of Denmark, 6.00%, 11/15/02 DKK 7,000 $ 1,032
- -------------------------------------------------------------------------------
Total Denmark (Cost $1,083) 1,032
- -------------------------------------------------------------------------------
FRANCE=4.7%====================================================================
Government Bonds 3.8%
Bons du Tresor Annuel
4.50%, 7/12/02 EUR 500 529
- -------------------------------------------------------------------------------
4.00%, 4/25/09 300 295
- -------------------------------------------------------------------------------
Caisse d'Amortissement de la Dette Sociale
6.50%, 3/11/02 USD 200 201
- -------------------------------------------------------------------------------
Caisse Nationale des Autoroutes, 5.85%, 3/24/13 EUR 290 321
- -------------------------------------------------------------------------------
1,346
- -------------------------------------------------------------------------------
Corporate Bonds 0.9%
Reseau Ferre de France, 5.25%, 4/14/10 300 317
- -------------------------------------------------------------------------------
317
- -------------------------------------------------------------------------------
Total France (Cost $1,766) 1,663
- -------------------------------------------------------------------------------
<PAGE>
GERMANY=13.2%==================================================================
Government Bonds 13.2%
Bundesrepublic
4.50%, 5/17/02 EUR 950 1,005
- -------------------------------------------------------------------------------
7.50%, 11/11/04 511 614
- -------------------------------------------------------------------------------
6.875%, 5/12/05 1,315 1,545
- -------------------------------------------------------------------------------
6.00%, 1/4/07 435 493
- -------------------------------------------------------------------------------
6.50%, 7/4/27 815 973
- -------------------------------------------------------------------------------
Total Germany (Cost $5,003) 4,630
- -------------------------------------------------------------------------------
GREECE=1.4%====================================================================
Government Bonds 0.8%
Republic of Greece, 6.60%, 1/15/04 GRD 90,000 287
- -------------------------------------------------------------------------------
287
- -------------------------------------------------------------------------------
Corporate Bonds 0.6%
Public Power, 4.50%, 3/12/09 EUR 200 190
- -------------------------------------------------------------------------------
190
- -------------------------------------------------------------------------------
Total Greece (Cost $489) 477
- -------------------------------------------------------------------------------
ITALY=3.0%=====================================================================
Government Bonds 3.0%
Buoni del Tesoro Poliennali
9.00%, 10/1/03 EUR 269 $ 329
- -------------------------------------------------------------------------------
7.25%, 11/1/26 573 727
- -------------------------------------------------------------------------------
Total Italy (Cost $1,093) 1,056
- -------------------------------------------------------------------------------
JAPAN=1.0%=====================================================================
Government Bonds 1.0%
Government of Japan, 0.90%, 12/22/08 JPY 46,000 344
- -------------------------------------------------------------------------------
Total Japan (Cost $348) 344
- -------------------------------------------------------------------------------
<PAGE>
MEXICO=0.8%====================================================================
Government Bonds 0.8%
United Mexican States
9.875%, 1/15/07 USD 90 91
- -------------------------------------------------------------------------------
11.50%, 5/15/26 175 196
- -------------------------------------------------------------------------------
Total Mexico (Cost $278) 287
- -------------------------------------------------------------------------------
NETHERLANDS=4.4%===============================================================
Government Bonds 4.2%
Government of Netherlands, 5.75%, 1/15/04 EUR 1,326 1,470
- -------------------------------------------------------------------------------
1,470
- -------------------------------------------------------------------------------
Corporate Bonds 0.2%
Hermes Europe Railtel, 10.375%, 1/15/06 80 87
- -------------------------------------------------------------------------------
87
- -------------------------------------------------------------------------------
Total Netherlands (Cost $1,730) 1,557
- -------------------------------------------------------------------------------
POLAND=1.4%====================================================================
Government Bonds 0.9%
Republic of Poland
Par, STEP, 3.00%, 10/27/24 USD 400 241
- -------------------------------------------------------------------------------
PDI, STEP, 5.00%, 10/27/14 100 89
- -------------------------------------------------------------------------------
330
- -------------------------------------------------------------------------------
Corporate Bonds 0.5%
Poland Communications Sr. Notes
(144a), 9.875%, 11/1/03 USD 180 $ 178
- -------------------------------------------------------------------------------
178
- -------------------------------------------------------------------------------
Total Poland (Cost $539) 508
- -------------------------------------------------------------------------------
RUSSIA=0.5%====================================================================
Government Bonds 0.5%
City of Moscow, 9.50%, 5/31/00 * 50 31
- -------------------------------------------------------------------------------
<PAGE>
Russian roubles and OFZs, STEP
0-30.00%, 12/15/01-1/21/04 * RUB 3,282 13
- -------------------------------------------------------------------------------
Russian Federation, 8.75%, 7/24/05 * USD 70 35
- -------------------------------------------------------------------------------
Vnesheconombank
IAN, FRN, 5.969%, 12/15/15 * 335 54
- -------------------------------------------------------------------------------
Principal Loans, FRN, 5.969%, 12/15/20 * 330 41
- -------------------------------------------------------------------------------
Total Russia (Cost $539) 174
- -------------------------------------------------------------------------------
SOUTH=AFRICA=0.0%==============================================================
Bond Options Purchased 0.0%
Republic of South Africa, 12.00%, 2/28/05
Call, 11/99 @ 14.75 * ZAR 2,500 10
- -------------------------------------------------------------------------------
Total South Africa (Cost $9) 10
- -------------------------------------------------------------------------------
SOUTH=KOREA=1.0%===============================================================
Government Bonds 1.0%
Korea Development Bank
1.875%, 2/13/02 JPY 15,000 123
- -------------------------------------------------------------------------------
7.125%, 4/22/04 USD 250 243
- -------------------------------------------------------------------------------
Total South Korea (Cost $372) 366
- -------------------------------------------------------------------------------
SPAIN=3.0%=====================================================================
Government Bonds 3.0%
Bonos del Estado
6.15%, 1/31/13 EUR 781 892
- -------------------------------------------------------------------------------
6.00% 1/31/29 150 165
- -------------------------------------------------------------------------------
Total Spain (Cost $1,242) 1,057
- -------------------------------------------------------------------------------
SUPRANATIONAL=3.5%=============================================================
Government Bonds 3.5%
Asian Development Bank, 3.125%, 6/29/05 JPY 25,000 $ 227
- -------------------------------------------------------------------------------
European Investment Bank
5.25%, 3/23/02 EUR 65,000 345
<PAGE>
- -------------------------------------------------------------------------------
4.00%, 4/15/09 690 668
- -------------------------------------------------------------------------------
Total Supranational (Cost $1,279) 1,240
- -------------------------------------------------------------------------------
SWEDEN=4.0%====================================================================
Government Bonds 4.0%
Kingdom of Sweden
5.50%, 4/12/02 SEK 6,000 731
- -------------------------------------------------------------------------------
6.50%, 10/25/06 2,500 323
- -------------------------------------------------------------------------------
5.00%, 1/28/09 3,000 360
- -------------------------------------------------------------------------------
Total Sweden (Cost $1,490) 1,414
- -------------------------------------------------------------------------------
TUNISIA=0.5%===================================================================
Government Bonds 0.5%
Central Bank of Tunisia, 4.95%, 9/27/11 JPY 20,000 163
- -------------------------------------------------------------------------------
Total Tunisia (Cost $167) 163
- -------------------------------------------------------------------------------
UNITED=KINGDOM=8.0%============================================================
Government Bonds 4.5%
United Kingdom Treasury
6.50%, 12/7/03 GBP 230 378
- -------------------------------------------------------------------------------
7.50%, 12/7/06 675 1,197
- -------------------------------------------------------------------------------
1,575
- -------------------------------------------------------------------------------
Corporate Bonds 3.5%
Abbey National Treasury, 5.25%, 1/21/04 155 234
- -------------------------------------------------------------------------------
Colt Telecom, 8.875%, 11/30/07 EUR 160 88
- -------------------------------------------------------------------------------
Coral Group, 10.00%, 2/15/09 GBP 35 55
- -------------------------------------------------------------------------------
Doncasters, 8.125%, 5/1/09 50 78
- -------------------------------------------------------------------------------
Energis, 9.50%, 6/15/09 25 40
- -------------------------------------------------------------------------------
LCR Finance, 4.75%, 12/31/10 380 561
- -------------------------------------------------------------------------------
Orange, 7.625%, 8/1/08 EUR 100 106
- -------------------------------------------------------------------------------
<PAGE>
Telewest Communications, STEP, 0%, 4/15/09 GBP 67 68
- -------------------------------------------------------------------------------
1,230
- -------------------------------------------------------------------------------
Total United Kingdom (Cost $3,049) 2,805
- -------------------------------------------------------------------------------
UNITED=STATES=36.4%============================================================
Government Bonds 23.9%
Federal National Mortgage Assn.,
6.375%, 8/15/07 AUD 500 $ 324
- -------------------------------------------------------------------------------
Tennessee Valley Authority, 6.375%, 9/18/06 EUR 400 234
- -------------------------------------------------------------------------------
U.S. Treasury Bonds
7.125%, 2/15/23 USD 810 896
- -------------------------------------------------------------------------------
6.375%, 8/15/27 910 930
- -------------------------------------------------------------------------------
5.25%, 11/15/28 1,460 1,293
- -------------------------------------------------------------------------------
U.S. Treasury Notes
6.00%, 8/15/00 2,550 2,567
- -------------------------------------------------------------------------------
5.375%, 2/15/01 480 479
- -------------------------------------------------------------------------------
4.25%, 11/15/03 750 708
- -------------------------------------------------------------------------------
4.75%, 11/15/08 700 643
- -------------------------------------------------------------------------------
Inflation Indexed, 3.875%, 1/15/09 355 354
- -------------------------------------------------------------------------------
8,428
- -------------------------------------------------------------------------------
Corporate Bonds 9.9%
3M, 5.00%, 10/15/01 EUR 500 270
- -------------------------------------------------------------------------------
American Standard, 7.125%, 6/1/06 80 83
- -------------------------------------------------------------------------------
Aramark Services, 6.75%, 8/1/04 USD 250 245
- -------------------------------------------------------------------------------
Capital One Financial, 7.125%, 8/1/08 150 142
- -------------------------------------------------------------------------------
Chancellor Media, 8.00%, 11/1/08 100 97
- -------------------------------------------------------------------------------
Comcast Cable Communications, 6.20%, 11/15/08 400 372
- -------------------------------------------------------------------------------
Duraoperating, 9.00%, 5/1/09 EUR 75 76
- -------------------------------------------------------------------------------
Huntsman ICI Chemicals, 10.125%, 7/1/09 60 62
- -------------------------------------------------------------------------------
NTL, STEP, 0%, 4/1/08 GBP 80 84
- -------------------------------------------------------------------------------
<PAGE>
Newell, 6.35%, 7/15/08 USD 500 476
- -------------------------------------------------------------------------------
Norfolk Southern, 7.35%, 5/15/07 500 510
- -------------------------------------------------------------------------------
R&B Falcon, 6.75%, 4/15/05 500 415
- -------------------------------------------------------------------------------
SunAmerica Institutional Funding
5.125%, 4/15/08 EUR 750 402
- -------------------------------------------------------------------------------
5.25%, 5/20/09 1,500 238
- -------------------------------------------------------------------------------
3,472
- -------------------------------------------------------------------------------
Money Market Funds 2.6%
Reserve Investment Fund, 5.05% # USD 929 929
- -------------------------------------------------------------------------------
929
- -------------------------------------------------------------------------------
Total United States (Cost $13,144) 12,829
- -------------------------------------------------------------------------------
=Total=Investments=in=Securities===============================================
101.0% of Net Assets (Cost $37,684) $ 35,557
<PAGE>
=Forward=Currency=Exchange=Contracts===========================================
In thousands
Unrealized
Counterparty Settlement Receive Deliver Gain (Loss)
----------------- --------------------------- ---------------------------
Chase Manhattan 7/6/99 USD 1,643 AUD 2,540 $ (36)
Chase Manhattan 7/12/99 EUR 298 SEK 2,611 -
Chase Manhattan 7/12/99 EUR 483 USD 500 (2)
Chase Manhattan 7/12/99 USD 1,213 EUR 1,160 16
Chase Manhattan 7/16/99 DKK 2,491 USD 348 (2)
Chase Manhattan 7/16/99 USD 743 DKK 5,200 21
Chase Manhattan 7/16/99 USD 501 GBP 311 11
Morgan Stanley 7/26/99 JPY 406,530 USD 3,365 8
Chase Manhattan 7/26/99 USD 383 SEK 3,206 5
-----------
Net unrealized gain (loss) on open forward
currency exchange contracts 21
===============================================================================
Other Assets Less Liabilities (371)
===============================================================================
===============================================================================
NET ASSETS $ 35,207
===============================================================================
# Seven-day yield
* Non-income producing
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
0.5% of net assets.
AUD Australian dollar
CAD Canadian dollar
DKK Danish krone
EUR Euro
GBP British sterling
GRD Greek drachma
JPY Japanese yen
RUB Russian rouble
SEK Swedish krona
USD U.S. dollar
ZAR South African rand
FLIRB Front loaded interest reduction bond
FRB Floating rate bond
FRN Floating rate note
IAN Interest arrears note
PDI Past due interest bond
STEP Stepped coupon note for which interest rate will adjust on specified future
date(s)
The accompanying notes are an integral part of these financial statements.
<PAGE>
================================================================================
T. Rowe Price Global Bond Fund
- ------------------------------
Unaudited June 30, 1999
STATEMENT OF ASSETS AND LIABILITIES
-----------------------------------
In thousands
Assets
Investments in securities, at value (cost $37,684) $ 35,557
Securities lending collateral 3,570
Other assets 1,758
Total assets 40,885
Liabilities
Obligation to return securities lending collateral 3,570
Other liabilities 2,108
Total liabilities 5,678
NET ASSETS $ 35,207
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (41)
Accumulated net realized gain/loss - net of distributions (840)
Net unrealized gain (loss) (2,128)
Paid-in-capital applicable to 3,770,564 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 38,216
NET ASSETS $ 35,207
NET ASSET VALUE PER SHARE $ 9.34
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price International Bond Fund
- -------------------------------------
Unaudited June 30, 1999
PORTFOLIO OF INVESTMENTS
------------------------
Par/Shares Value
In thousands
=ARGENTINA=0.6%===============================================================
Government Bonds 0.6%
Republic of Argentina
11.375%, 1/30/17 USD 1,500 $ 1,305
- ------------------------------------------------------------------------------
FRB, 5.938%, 3/31/05 1,628 1,392
- ------------------------------------------------------------------------------
Par, FRN, 6.00%, 3/31/23 3,250 2,082
- ------------------------------------------------------------------------------
Total Argentina (Cost $5,266) 4,779
- ------------------------------------------------------------------------------
<PAGE>
=AUSTRALIA=5.2%===============================================================
Government Bonds 5.2%
Commonwealth of Australia
9.00%, 9/15/04 AUD 23,500 17,637
- ------------------------------------------------------------------------------
8.75%, 8/15/08 34,300 26,521
- ------------------------------------------------------------------------------
Total Australia (Cost $45,026) 44,158
- ------------------------------------------------------------------------------
=AUSTRIA=3.3%=================================================================
Government Bonds 3.3%
Republic of Austria
4.50%, 9/28/05 EUR 600,000 5,855
- ------------------------------------------------------------------------------
5.00%, 1/15/08 21,061 22,277
- ------------------------------------------------------------------------------
Total Austria (Cost $31,964) 28,132
- ------------------------------------------------------------------------------
=BRAZIL=0.5%==================================================================
Government Bonds 0.5%
Federative Republic of Brazil (Class C),
8.00%, 4/15/14 USD 6,634 4,327
- ------------------------------------------------------------------------------
Total Brazil (Cost $4,273) 4,327
- ------------------------------------------------------------------------------
=BULGARIA=0.7%================================================================
Government Bonds 0.7%
National Republic of Bulgaria
FLIRB, STEP, 2.50%, 7/28/12 6,630 4,048
- ------------------------------------------------------------------------------
IAB, FRN, 5.875%, 7/28/11 3,000 2,072
- ------------------------------------------------------------------------------
Total Bulgaria (Cost $6,062) 6,120
- ------------------------------------------------------------------------------
=CANADA=2.5%==================================================================
Government Bonds 2.5%
Government of Canada, 5.00%, 9/1/04 CAD 31,000 $ 20,688
- ------------------------------------------------------------------------------
Total Canada (Cost $20,334) 20,688
- ------------------------------------------------------------------------------
<PAGE>
=CYPRUS=0.5%==================================================================
Government Bonds 0.5%
Republic of Cyprus, 5.375%, 7/28/08 EUR 4,000 4,048
- ------------------------------------------------------------------------------
Total Cyprus (Cost $4,218) 4,048
- ------------------------------------------------------------------------------
=DENMARK=2.9%=================================================================
Government Bonds 2.9%
Kingdom of Denmark, 6.00%, 11/15/02 DKK 164,000 24,174
- ------------------------------------------------------------------------------
Total Denmark (Cost $25,377) 24,174
- ------------------------------------------------------------------------------
=FRANCE=6.8%==================================================================
Government Bonds 5.5%
Bons du Tresor Annuel
4.50%, 7/12/02 EUR 29,977 31,742
- ------------------------------------------------------------------------------
4.00%, 4/25/09 8,000 7,872
- ------------------------------------------------------------------------------
Caisse Nationale des Autoroutes, 5.85%, 3/24/13 6,067 6,719
- ------------------------------------------------------------------------------
46,333
- ------------------------------------------------------------------------------
Corporate Bonds 1.3%
Reseau Ferre de France, 5.25%, 4/14/10 10,000 10,563
- ------------------------------------------------------------------------------
10,563
- ------------------------------------------------------------------------------
Total France (Cost $61,197) 56,896
- ------------------------------------------------------------------------------
=GERMANY=19.2%================================================================
Government Bonds 14.5%
Bundesobligation, 4.50%, 5/17/02 22,990 24,332
- ------------------------------------------------------------------------------
Bundesrepublic
7.50%, 11/11/04 7,158 8,591
- ------------------------------------------------------------------------------
6.875%, 5/12/05 21,867 25,704
- ------------------------------------------------------------------------------
6.00%, 1/4/07 27,642 31,332
- ------------------------------------------------------------------------------
6.50%, 7/4/27 27,202 32,480
- ------------------------------------------------------------------------------
122,439
<PAGE>
- ------------------------------------------------------------------------------
Corporate Bonds 4.7%
Bank Nederlandse Gemeenten
6.25%, 8/10/00 EUR 6,000 $ 3,268
- ------------------------------------------------------------------------------
5.25%, 10/1/01 14,300 7,811
- ------------------------------------------------------------------------------
Hypothekenbank in Essen, 4.25%, 7/6/09 11,900 11,673
- ------------------------------------------------------------------------------
KFW International Finance, 6.75%, 6/20/05 14,316 16,631
- ------------------------------------------------------------------------------
39,383
- ------------------------------------------------------------------------------
Total Germany (Cost $171,736) 161,822
- ------------------------------------------------------------------------------
=GREECE=2.2%==================================================================
Government Bonds 1.7%
Republic of Greece, 6.60%, 1/15/04 GRD 4,500,000 14,379
- ------------------------------------------------------------------------------
14,379
- ------------------------------------------------------------------------------
Corporate Bonds 0.5%
Public Power, 4.50%, 3/12/09 EUR 4,200 3,986
- ------------------------------------------------------------------------------
3,986
- ------------------------------------------------------------------------------
Total Greece (Cost $18,770) 18,365
- ------------------------------------------------------------------------------
=ITALY=5.8%===================================================================
Government Bonds 5.8%
Buoni del Tesoro Poliennali
9.00%, 10/1/03 26,923 32,992
- ------------------------------------------------------------------------------
7.25%, 11/1/26 12,330 15,637
- ------------------------------------------------------------------------------
Total Italy (Cost $53,633) 48,629
- ------------------------------------------------------------------------------
=JAPAN=2.8%===================================================================
Government Bonds 2.8%
Government of Japan, 0.90%, 12/22/08 JPY 3,200,000 23,953
- ------------------------------------------------------------------------------
Total Japan (Cost $24,130) 23,953
- ------------------------------------------------------------------------------
<PAGE>
=MEXICO=0.6%==================================================================
Government Bonds 0.6%
United Mexican States
3.85%, 12/31/19 USD 200,000 1,364
- ------------------------------------------------------------------------------
6.25%, 12/31/19 500 373
- ------------------------------------------------------------------------------
11.50%, 5/15/26 3,100 3,464
- ------------------------------------------------------------------------------
Par (Series W-A), 6.25%, 12/31/19
(with attached value recovery rights) USD 250 $ 186
- ------------------------------------------------------------------------------
Total Mexico (Cost $5,358) 5,387
- ------------------------------------------------------------------------------
=NETHERLANDS=4.8%=============================================================
Government Bonds 4.6%
Government of Netherlands, 5.75%, 1/15/04 EUR 34,630 38,383
- ------------------------------------------------------------------------------
38,383
- ------------------------------------------------------------------------------
Corporate Bonds 0.2%
Hermes Europe Railtel, 10.375%, 1/15/06 1,910 2,087
- ------------------------------------------------------------------------------
2,087
- ------------------------------------------------------------------------------
Total Netherlands (Cost $46,124) 40,470
- ------------------------------------------------------------------------------
=NIGERIA=0.1%=================================================================
Government Bonds 0.1%
Central Bank of Nigeria Par (Series WW),
STEP, 6.25%, 11/15/20
(with attached value recovery warrants) USD 2,000 1,235
- ------------------------------------------------------------------------------
Total Nigeria (Cost $1,226) 1,235
- ------------------------------------------------------------------------------
=POLAND=1.6%==================================================================
Government Bonds 1.1%
Republic of Poland
Par, STEP, 3.00%, 10/27/24 10,000 6,025
- ------------------------------------------------------------------------------
PDI, STEP, 5.00%, 10/27/14 3,575 3,182
- ------------------------------------------------------------------------------
9,207
- ------------------------------------------------------------------------------
<PAGE>
Corporate Bonds 0.5%
Poland Communications, Sr. Notes
(144a), 9.875%, 11/1/03 3,930 3,890
- ------------------------------------------------------------------------------
3,890
- ------------------------------------------------------------------------------
Total Poland (Cost $13,833) 13,097
- ------------------------------------------------------------------------------
=RUSSIA=0.4%==================================================================
Government Bonds 0.4%
City of Moscow, 9.50%, 5/31/00 * 650 400
- ------------------------------------------------------------------------------
Russian roubles and OFZs, STEP
0-30.00%, 12/15/01-1/21/04 * RUB 44,276 314
- ------------------------------------------------------------------------------
Russian Federation
8.75%, 7/24/05 * USD 975 $ 489
- ------------------------------------------------------------------------------
11.00%, 7/24/18 * 550 274
- ------------------------------------------------------------------------------
Vnesheconombank
IAN, FRN, 5.969%, 12/15/15 * 8,720 1,401
- ------------------------------------------------------------------------------
Principal Loans, FRN, 5.969%, 12/15/20 * 4,780 588
- ------------------------------------------------------------------------------
Total Russia (Cost $10,832) 3,466
- ------------------------------------------------------------------------------
=SLOVENIA=0.3%================================================================
Government Bonds 0.3%
Republic of Slovenia, 5.375%, 5/27/05 EUR 2,200 2,325
- ------------------------------------------------------------------------------
Total Slovenia (Cost $2,496) 2,325
- ------------------------------------------------------------------------------
=SOUTH=AFRICA=0.0%============================================================
Bond Options Purchased 0.0%
Republic of South Africa, 12.00%, 2/28/05
Call, 11/99 @ 14.75 * ZAR 60,000 234
- ------------------------------------------------------------------------------
Total South Africa (Cost $208) 234
- ------------------------------------------------------------------------------
<PAGE>
=SOUTH=KOREA=1.1%=============================================================
Government Bonds 0.8%
Korea Development Bank
2.56%, 6/26/01 JPY 400,000 3,338
- ------------------------------------------------------------------------------
1.875%, 2/13/02 410,000 3,359
- ------------------------------------------------------------------------------
6,697
- ------------------------------------------------------------------------------
Corporate Bonds 0.3%
Korea Industrial Leasing, 2.20%, 8/7/02 330,000 2,721
- ------------------------------------------------------------------------------
2,721
- ------------------------------------------------------------------------------
Total South Korea (Cost $9,133) 9,418
- ------------------------------------------------------------------------------
=SPAIN=4.3%===================================================================
Government Bonds 4.3%
Bonos del Estado
6.15%, 1/31/13 EUR 24,641 28,132
- ------------------------------------------------------------------------------
6.00% 1/31/29 7,513 8,280
- ------------------------------------------------------------------------------
Total Spain (Cost $42,902) 36,412
- ------------------------------------------------------------------------------
=SUPRANATIONAL=8.0%===========================================================
Government Bonds 8.0%
Asian Development Bank, 3.125%, 6/29/05 JPY 1,215,000 $ 11,005
- ------------------------------------------------------------------------------
European Investment Bank
5.25%, 3/23/02 EUR 700,000 3,722
- ------------------------------------------------------------------------------
3.00%, 9/20/06 JPY 250,000 2,257
- ------------------------------------------------------------------------------
4.00%, 4/15/09 EUR 6,200 6,000
- ------------------------------------------------------------------------------
Export Import Bank, 4.375%, 10/1/03 JPY 2,500,000 23,498
- ------------------------------------------------------------------------------
Inter-American Development Bank
7.00%, 6/8/05 EUR 25,000 14,958
- ------------------------------------------------------------------------------
1.90%, 7/8/09 JPY 700,000 5,724
- ------------------------------------------------------------------------------
Total Supranational (Cost $71,427) 67,164
- ------------------------------------------------------------------------------
<PAGE>
=SWEDEN=6.3%==================================================================
Government Bonds 6.3%
Kingdom of Sweden
5.50%, 4/12/02 SEK 204,000 24,840
- ------------------------------------------------------------------------------
6.50%, 10/25/06 125,000 16,157
- ------------------------------------------------------------------------------
5.00%, 1/28/09 100,000 12,009
- ------------------------------------------------------------------------------
Total Sweden (Cost $55,736) 53,006
- ------------------------------------------------------------------------------
=TUNISIA=0.4%=================================================================
Government Bonds 0.4%
Central Bank of Tunisia, 4.95%, 9/27/11 JPY 400,000 3,257
- ------------------------------------------------------------------------------
Total Tunisia (Cost $3,334) 3,257
- ------------------------------------------------------------------------------
=UNITED=KINGDOM=11.5%=========================================================
Government Bonds 6.2%
United Kingdom Treasury
6.50%, 12/7/03 GBP 4,400 7,230
- ------------------------------------------------------------------------------
7.50%, 12/7/06 20,300 36,017
- ------------------------------------------------------------------------------
7.25%, 12/7/07 5,330 9,486
- ------------------------------------------------------------------------------
52,733
- ------------------------------------------------------------------------------
Corporate Bonds 5.3%
Abbey National Treasury, 5.25%, 1/21/04 4,780 7,229
- ------------------------------------------------------------------------------
Alliance & Leicester Building Society,
8.75%, 12/7/06 GBP 8,500 $ 14,912
- ------------------------------------------------------------------------------
Colt Telecom, 8.875%, 11/30/07 EUR 2,890 1,592
- ------------------------------------------------------------------------------
Coral Group, 10.00%, 2/15/09 GBP 805 1,253
- ------------------------------------------------------------------------------
Doncasters, 8.125%, 5/1/09 1,110 1,721
- ------------------------------------------------------------------------------
Energis, 9.50%, 6/15/09 555 888
- ------------------------------------------------------------------------------
Gallaher Group, 5.875%, 8/6/08 EUR 3,600 1,886
- ------------------------------------------------------------------------------
Halifax Building Society, 8.75%, 7/10/06 GBP 4,000 7,087
- ------------------------------------------------------------------------------
LCR Finance, 4.75%, 12/31/10 2,700 3,989
<PAGE>
- ------------------------------------------------------------------------------
Orange, 7.625%, 8/1/08 EUR 2,000 2,118
- ------------------------------------------------------------------------------
Telewest Communications, STEP, 0%, 4/15/09 GBP 1,610 1,631
- ------------------------------------------------------------------------------
44,306
- ------------------------------------------------------------------------------
Total United Kingdom (Cost $101,969) 97,039
- ------------------------------------------------------------------------------
=UNITED=STATES=7.0%===========================================================
Government Bonds 3.3%
Federal National Mortage Assn.
6.875%, 6/7/02 GBP 6,400 10,340
- ------------------------------------------------------------------------------
6.375%, 8/15/07 AUD 12,000 7,770
- ------------------------------------------------------------------------------
Tennessee Valley Authority, 6.375%, 9/18/06 EUR 17,000 9,946
- ------------------------------------------------------------------------------
28,056
- ------------------------------------------------------------------------------
Corporate Bonds 3.2%
3M, 5.00%, 10/15/01 EUR 8,350 4,509
- ------------------------------------------------------------------------------
American Standard, 7.125%, 6/1/06 2,000 2,072
- ------------------------------------------------------------------------------
Carrier1, 13.25%, 2/15/09 780 860
- ------------------------------------------------------------------------------
Duraoperating, 9.00%, 5/1/09 2,000 2,031
- ------------------------------------------------------------------------------
Huntsman ICI Chemicals, 10.125%, 7/1/09 1,600 1,666
- ------------------------------------------------------------------------------
NTL, STEP, 0%, 4/1/08 GBP 1,930 2,034
- ------------------------------------------------------------------------------
SunAmerica Institutional Funding
- ------------------------------------------------------------------------------
5.125%, 4/15/08 EUR 15,800 8,464
- ------------------------------------------------------------------------------
5.25%, 5/20/09 32,600 5,173
- ------------------------------------------------------------------------------
26,809
- ------------------------------------------------------------------------------
Money Market Funds 0.5%
Reserve Investment Fund, 5.05% # USD 4,389 4,389
- ------------------------------------------------------------------------------
4,389
- ------------------------------------------------------------------------------
<PAGE>
Total United States (Cost $68,988) 59,254
==============================================================================
99.4% of Net Assets (Cost $905,552) $ 837
=Forward=Currency=Exchange=Contracts==========================================
In thousands
Unrealized
Counterparty Settlement Receive Deliver Gain (Loss)
----------------- --------------------------- ---------------------------
Chase Manhattan 7/6/99 CAD 27,038 JPY 2,249,553 $ (248)
Chase Manhattan 7/6/99 JPY 3,651,676 AUD 46,850 (760)
Chase Manhattan 7/12/99 EUR 12,426 SEK 108,808 (6)
Chase Manhattan 7/16/99 JPY 3,186,593 GBP 16,494 401
Citibank 7/26/99 DKK 29,939 JPY 506,481 (44)
Chase Manhattan 7/26/99 JPY 1,020,806 DKK 60,403 81
Chase Manhattan 7/26/99 JPY 1,223,996 SEK 84,414 196
-----------
Net unrealized gain (loss) on open forward
currency exchange contracts (380)
==============================================================================
Other Assets Less Liabilities 5,195
==============================================================================
==============================================================================
NET ASSETS $ 842,670
==============================================================================
# Seven-day yield
* Non-income producing
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 0.5% of net assets.
AUD Australian dollar
CAD Canadian dollar
DKK Danish krone
EUR Euro
GBP British sterling
GRD Greek drachma
JPY Japanese yen
RUB Russian rouble
SEK Swedish krona
USD U.S. dollar
ZAR South African rand
FLIRB Front loaded interest reduction bond
FRB Floating rate bond
FRN Floating rate note
IAB Interest arrears bond
IAN Interest arrears note
PDI Past due interest bond
STEP Stepped coupon note for which interest rate
will adjust on specified future date(s)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price International Bond Fund
- -------------------------------------
Unaudited June 30, 1999
STATEMENT OF ASSETS AND LIABILITIES
- ----------------------------------- In thousands
Assets
Investments in securities, at value (cost $905,552) $ 837,855
Securities lending collateral 87,932
Other assets 21,988
Total assets 947,775
Liabilities
Obligation to return securities lending collateral 87,932
Other liabilities 17,173
Total liabilities 105,105
NET ASSETS $ 842,670
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (705)
Accumulated net realized gain/loss - net of distributions (16,454)
Net unrealized gain (loss) (68,811)
Paid-in-capital applicable to 91,885,254 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 928,640
NET ASSETS $ 842,670
NET ASSET VALUE PER SHARE $ 9.17
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Bond Fund
- ----------------------------------------
Unaudited June 30, 1999
PORTFOLIO OF INVESTMENTS
------------------------
Par/Shares Value
In thousands
ARGENTINA=14.5%================================================================
Government Bonds 13.6%
Republic of Argentina
11.75%, 4/7/09 USD 4,800 $ 4,344
- -------------------------------------------------------------------------------
11.375%, 1/30/17 1,000 870
- -------------------------------------------------------------------------------
BOCON PRE 4, FRN, 5.217%, 9/1/02 2,000 1,943
- -------------------------------------------------------------------------------
BOCONPRO 1, FRN, 2.88%, 4/1/07 ARS 1,000 702
- -------------------------------------------------------------------------------
FRB, 5.938%, 3/31/05 USD 9,951 8,508
<PAGE>
- -------------------------------------------------------------------------------
Par, FRN, 6.00%, 3/31/23 10,100 6,470
- -------------------------------------------------------------------------------
22,837
- -------------------------------------------------------------------------------
Corporate Bonds 0.9%
CEI Citicorp, 11.25%, 2/14/07 ARS 1,000 650
- -------------------------------------------------------------------------------
CIA International Telecommunications,
10.375%, 8/1/04 1,000 785
- -------------------------------------------------------------------------------
1,435
- -------------------------------------------------------------------------------
Total Argentina (Cost $25,668) 24,272
- -------------------------------------------------------------------------------
BRAZIL=18.1%===================================================================
Government Bonds 17.3%
Federative Republic of Brazil
11.625%, 4/15/04 USD 4,750 4,483
- -------------------------------------------------------------------------------
10.125%, 5/15/27 3,495 2,647
- -------------------------------------------------------------------------------
(Class C), 8.00%, 4/15/14 15,001 9,784
- -------------------------------------------------------------------------------
DCB, FRN, 5.938%, 4/15/12 2,000 1,243
- -------------------------------------------------------------------------------
Discount FRN, 5.875%, 4/15/24 4,000 2,550
- -------------------------------------------------------------------------------
EI, FRN, 5.875%, 4/15/06 5,320 4,203
- -------------------------------------------------------------------------------
NMB, FRN, 5.938%, 4/15/09 1,600 1,124
- -------------------------------------------------------------------------------
Par, FRN, 5.75%, 4/15/24 5,100 2,945
- -------------------------------------------------------------------------------
28,979
- -------------------------------------------------------------------------------
Corporate Bonds 0.8%
Petrol Brasileiros, 4.10%, 9/11/03 JPY 200,000 1,372
- -------------------------------------------------------------------------------
1,372
- -------------------------------------------------------------------------------
Total Brazil (Cost $32,970) 30,351
- -------------------------------------------------------------------------------
BULGARIA=9.1%==================================================================
Government Bonds 9.1%
National Republic of Bulgaria
Discount (Series A), FRN, 5.875%, 7/28/24 USD 4,325 2,957
- -------------------------------------------------------------------------------
FLIRB, STEP, 2.50%, 7/28/12 USD 10,020 $ 6,118
<PAGE>
- -------------------------------------------------------------------------------
IAB, FRN, 5.875%, 7/28/11 8,900 6,147
- -------------------------------------------------------------------------------
Total Bulgaria (Cost $15,846) 15,222
- -------------------------------------------------------------------------------
COLOMBIA=1.0%==================================================================
Government Bonds 1.0%
Republic of Colombia, 9.75%, 4/23/09 2,000 1,653
- -------------------------------------------------------------------------------
Total Colombia (Cost $1,711) 1,653
- -------------------------------------------------------------------------------
ECUADOR=1.5%===================================================================
Government Bonds 1.5%
Republic of Ecuador Discount, FRN, 6.00%, 2/28/25 5,250 2,458
- -------------------------------------------------------------------------------
Total Ecuador (Cost $2,776) 2,458
- -------------------------------------------------------------------------------
GABON=1.4%=====================================================================
Government Bonds 1.4%
Republic of Gabon, Loan Participation
FRN, 6.688%, 1/4/04 * 6,022 2,318
- -------------------------------------------------------------------------------
Total Gabon (Cost $4,563) 2,318
- -------------------------------------------------------------------------------
INDONESIA=1.4%=================================================================
Corporate Bonds 1.0%
Indah Kiat, 11.875%, 6/15/02 2,000 1,640
- -------------------------------------------------------------------------------
1,640
- -------------------------------------------------------------------------------
Convertible Bonds 0.4%
APP Finance (VII) Mauritius, (144a),
3.50%, 4/30/03 1,000 754
- -------------------------------------------------------------------------------
754
- -------------------------------------------------------------------------------
Total Indonesia (Cost $2,450) 2,394
- -------------------------------------------------------------------------------
<PAGE>
IVORY=COAST=2.0%===============================================================
Government Bonds 2.0%
Republic of Ivory Coast
FLIRB, STEP, 2.00%, 3/31/18 EUR 18,595 716
- -------------------------------------------------------------------------------
PDI, STEP, 1.90%, 3/30/18 55,931 2,593
- -------------------------------------------------------------------------------
Total Ivory Coast (Cost $3,998) 3,309
- -------------------------------------------------------------------------------
MALAYSIA=0.5%==================================================================
Government Bonds 0.5%
Government of Malaysia, 8.75%, 6/1/09 USD 750 $ 763
- -------------------------------------------------------------------------------
Total Malaysia (Cost $745) 763
- -------------------------------------------------------------------------------
MEXICO=11.8%===================================================================
Government Bonds 11.8%
United Mexican States
11.50%, 5/15/26 USD 10,124 11,314
- -------------------------------------------------------------------------------
Par (Series W-A), 6.25%, 12/31/19
(with attached value recovery rights) 6,750 5,028
- -------------------------------------------------------------------------------
Par (Series W-B), 6.25%, 12/31/19
(with attached value recovery rights) 4,750 3,539
- -------------------------------------------------------------------------------
Total Mexico (Cost $19,459) 19,881
- -------------------------------------------------------------------------------
MOROCCO=3.7%===================================================================
Government Bonds 3.7%
Kingdom of Morrocco Restructured Loan (Tranche A)
Loan Participation, FRN, 5.906%, 1/1/09 7,619 6,152
- -------------------------------------------------------------------------------
Total Morocco (Cost $6,296) 6,152
- -------------------------------------------------------------------------------
<PAGE>
NIGERIA=5.0%===================================================================
Government Bonds 5.0%
Central Bank of Nigeria
Par (Series WW), STEP, 6.25%, 11/15/20
(with attached value recovery rights) 6,250 3,860
- -------------------------------------------------------------------------------
Promissory Notes, 3.357%, 1/5/10 11,300 4,518
- -------------------------------------------------------------------------------
Total Nigeria (Cost $8,924) 8,378
- -------------------------------------------------------------------------------
PANAMA=3.5%====================================================================
Government Bonds 3.5%
Republic of Panama
FRN, 6.087%, 5/10/02 1,154 1,125
- -------------------------------------------------------------------------------
IRB, STEP, 4.00%, 7/17/14 6,250 4,695
- -------------------------------------------------------------------------------
Total Panama (Cost $5,944) 5,820
- -------------------------------------------------------------------------------
PERU=2.8%======================================================================
Government Bonds 2.8%
Republic of Peru IRB (US Series), STEP,
3.75%, 3/7/17 USD 8,645 $ 4,787
- -------------------------------------------------------------------------------
Total Peru (Cost $4,470) 4,787
- -------------------------------------------------------------------------------
PHILIPPINES=0.9%===============================================================
Government Bonds 0.9%
Republic of Philippines
8.875%, 4/15/08 1,000 984
- -------------------------------------------------------------------------------
FLIRB (Series B), STEP, 6.00%, 6/1/08 500 464
- -------------------------------------------------------------------------------
Total Philippines (Cost $1,467) 1,448
- -------------------------------------------------------------------------------
POLAND=2.1%====================================================================
Government Bonds 1.2%
Republic of Poland Par, STEP, 3.00%, 10/27/24 3,500 2,109
- -------------------------------------------------------------------------------
2,109
- -------------------------------------------------------------------------------
<PAGE>
Corporate Bonds 0.9%
Poland Communications Sr. Notes
(144a), 9.875%, 11/1/03 1,500 1,485
- -------------------------------------------------------------------------------
1,485
- -------------------------------------------------------------------------------
Total Poland (Cost $3,855) 3,594
- -------------------------------------------------------------------------------
RUSSIA=8.9%====================================================================
Government Bonds 8.4%
City of Moscow, 9.50%, 5/31/00 * 700 430
- -------------------------------------------------------------------------------
Russian roubles and OFZs, STEP
0-30%, 12/15/01-1/21/04 * RUB 42,495 302
- -------------------------------------------------------------------------------
Russian Federation
11.75%, 6/10/03 * USD 1,000 608
- -------------------------------------------------------------------------------
8.75%, 7/24/05 * 3,600 1,804
- -------------------------------------------------------------------------------
10.00%, 6/26/07 * 9,000 4,534
- -------------------------------------------------------------------------------
11.00%, 7/24/18 * 2,575 1,284
- -------------------------------------------------------------------------------
12.75%, 6/24/28 * 1,500 853
- -------------------------------------------------------------------------------
Vnesheconombank
IAN, FRN, 5.969%, 12/15/15 * 14,449 2,321
- -------------------------------------------------------------------------------
Principal Loans, FRN, 5.969%, 12/15/20 * 17,370 2,139
- -------------------------------------------------------------------------------
14,275
- -------------------------------------------------------------------------------
Corporate Bonds 0.1%
Rossiyskiy Kredit Bank, 10.25%, 9/29/00 * USD 1,000 $ 100
- -------------------------------------------------------------------------------
100
- -------------------------------------------------------------------------------
Convertible Bonds 0.4%
Lukinter Finance, 3.50%, 5/6/02 1,000 721
- -------------------------------------------------------------------------------
721
- -------------------------------------------------------------------------------
Total Russia (Cost $22,233) 15,096
- -------------------------------------------------------------------------------
<PAGE>
SOUTH=AFRICA=0.0%==============================================================
Bond Options Purchased 0.0%
Republic of South Africa, 12.00%, 2/28/05
Call, 11/99 @ $14.75 * ZAR 10,000 39
- -------------------------------------------------------------------------------
Total South Africa (Cost $35) 39
- -------------------------------------------------------------------------------
THAILAND=0.0%==================================================================
Warrants 0.0%
NSM Steel, Warrants, 2/1/08 * USD 633 1
- -------------------------------------------------------------------------------
1
- -------------------------------------------------------------------------------
Corporate Bonds 0.0%
NSM Steel, (144a), 12.25%, 2/1/08 * 1,000 50
- -------------------------------------------------------------------------------
50
- -------------------------------------------------------------------------------
Total Thailand (Cost $948) 51
- -------------------------------------------------------------------------------
TURKEY=1.2%====================================================================
Corporate Bonds 1.2%
Cellco Finance, 15.00%, 8/1/05 2,000 2,070
- -------------------------------------------------------------------------------
Total Turkey (Cost $2,000) 2,070
- -------------------------------------------------------------------------------
VENEZUELA=5.7%=================================================================
Government Bonds 5.7%
Republic of Venezuela
9.25%, 9/15/27 4,000 2,690
- -------------------------------------------------------------------------------
DCB, FRN, 6.313%, 12/18/07 6,476 5,021
- -------------------------------------------------------------------------------
Discount, FRN, (Series X-B), 6.00%, 3/31/20 1,000 660
- -------------------------------------------------------------------------------
FLIRB, (Series A), 6.00%, 3/31/07 762 586
- -------------------------------------------------------------------------------
Par (Series W-A), (with attached
value recovery rights), 6.75%, 3/31/20 USD 950 $ 666
- -------------------------------------------------------------------------------
Total Venezuela (Cost $8,563) 9,623
- -------------------------------------------------------------------------------
<PAGE>
UNITED=STATES=2.2%=============================================================
Government Bonds 0.5%
U.S. Treasury Bond, Principal Only, 8/15/27 5,000 917
- -------------------------------------------------------------------------------
917
- -------------------------------------------------------------------------------
Money Market Funds 1.7%
Reserve Investment Fund, 5.05% # 2,792 2,792
- -------------------------------------------------------------------------------
2,792
- -------------------------------------------------------------------------------
Total United States (Cost $3,700) 3,709
- -------------------------------------------------------------------------------
=Total=Investments=in=Securities===============================================
97.3% of Net Assets (Cost $178,621) $ 163,388
=Forward=Currency=Exchange=Contracts===========================================
In thousands
Unrealized
Counterparty Settlement Receive Deliver Gain (Loss)
_________________ ___________________________ ___________________________
Chase Manhattan 7/26/99 USD 1,322 JPY 160,784 $ (12)
Net unrealized gain (loss) on open forward
currency exchange contracts (12)
Other Assets Less Liabilities 4,532
NET ASSETS $ 167,908
# Seven-day yield
* Non-income producing
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 0.9% of net assets.
ARS Argentinean peso
EUR Euro
JPY Japanese yen
RUB Russian rouble
USD U.S. dollar
ZAR South African rand
EI Eligible interest bond
FLIRB Front loaded interest reduction bond
FRB Floating rate bond
FRN Floating rate note
DCB Debt conversion bond
IAB Interest arrears bond
IAN Interest arrears note
IRB Interest reduction bond
NMB New money bond
PDI Past due interest bond
STEP Stepped coupon note for which interest rate
will adjust on specified future date(s)
The accompanying notes are an integral part of these financial statements.
<PAGE>
================================================================================
T. Rowe Price Emerging Markets Bond Fund
- ----------------------------------------
Unaudited June 30, 1999
STATEMENT OF ASSETS AND LIABILITIES
In thousands
Assets
Investments in securities, at value (cost $178,621) $ 163,388
Securities lending collateral 38,045
Other assets 5,653
Total assets 207,086
Liabilities
Obligation to return securities lending collateral 38,045
Other liabilities 1,133
Total liabilities 39,178
NET ASSETS $ 167,908
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (1,882)
Accumulated net realized gain/loss - net of distributions (27,591)
Net unrealized gain (loss) (15,283)
Paid-in-capital applicable to 17,892,487 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 212,664
NET ASSETS $ 167,908
NET ASSET VALUE PER SHARE $ 9.38
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Foreign Bond Funds
- -------------------------------- Unaudited
STATEMENT OF OPERATIONS
- -----------------------
Emerging
Global International Markets
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
In thousands
6 Months 6 Months 6 Months
Ended Ended Ended
6/30/99 6/30/99 6/30/99
------- ------- -------
Investment Income
Interest income $ 1,003 $ 21,715 $ 8,269
Expenses,
Custody and accounting 67 204 85
Shareholder servicing 56 767 217
Investment management 36 3,014 617
Registration 12 16 12
Prospectus and shareholder reports 8 55 16
Legal and audit 8 9 8
Directors 3 3 3
Miscellaneous 2 3 1
Total expenses 192 4,071 959
Net investment income 811 17,644 7,310
Realized and Unrealized Gain(Loss)
Net realized gain (loss)
Securities (616) (9,019) (18,157)
Foreign currency transactions (369) (1,648) 95
Net realized gain (loss) (985) (10,667) (18,062)
Change in net unrealized gain or loss
Securities (2,894) (91,276) 22,507
Other assets and liabilities
denominated in foreign currencies (274) (7,054) 397
Change in net unrealized
gain or loss (3,168) (98,330) 22,904
Net realized and unrealized gain (loss) (4,153) (108,997) 4,842
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $(3,342) $ (91,353) $ 12,152
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Global Bond Fund
- ------------------------------ Unaudited
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------- In thousands
6 Months Year
Ended Ended
6/30/99 12/31/98
==Increase=(Decrease)=in=Net=Assets============================================
Operations
Net investment income $ 811 $ 2,213
Net realized gain (loss) (985) 1,260
Change in net unrealized gain or loss (3,168) 1,228
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (3,342) 4,701
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (852) (2,213)
Net realized gain (437) -
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (1,289) (2,213)
- -------------------------------------------------------------------------------
Capital share transactions*
Shares sold 3,168 6,146
Distributions reinvested 1,014 1,701
Shares redeemed (6,270) (12,478)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (2,088) (4,631)
- -------------------------------------------------------------------------------
==Net=Assets===================================================================
Increase (decrease) during period (6,719) (2,143)
Beginning of period 41,926 44,069
- -------------------------------------------------------------------------------
===============================================================================
End of period $ 35,207 $ 41,926
===============================================================================
*Share information
Shares sold 326 609
Distributions reinvested 102 169
Shares redeemed (645) (1,243)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (217) (465)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price International Bond Fund
- ------------------------------------- Unaudited
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
6 Months Year
Ended Ended
6/30/99 12/31/98
==Increase=(Decrease)=in=Net=Assets============================================
Operations
Net investment income $ 17,644 $ 43,748
Net realized gain (loss) (10,667) 23,657
Change in net unrealized gain or loss (98,330) 52,216
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (91,353) 119,621
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (18,349) (43,748)
Net realized gain (9,976) -
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (28,325) (43,748)
- -------------------------------------------------------------------------------
Capital share transactions*
Shares sold 131,206 242,652
Distributions reinvested 25,969 38,637
Shares redeemed (121,298) (256,522)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 35,877 24,767
- -------------------------------------------------------------------------------
==Net=Assets===================================================================
Increase (decrease) during period (83,801) 100,640
Beginning of period 926,471 825,831
- -------------------------------------------------------------------------------
===============================================================================
End of period $ 842,670 $ 926,471
===============================================================================
*Share information
Shares sold 13,082 24,641
Distributions reinvested 2,625 3,943
Shares redeemed (12,363) (26,213)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 3,344 2,371
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Emerging Markets Bond Fund
- ---------------------------------------- Unaudited
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
6 Months Year
Ended Ended
6/30/99 12/31/98
==Increase=(Decrease)=in=Net=Assets============================================
Operations
Net investment income $ 7,310 $ 15,034
Net realized gain (loss) (18,062) (9,925)
Change in net unrealized gain or loss 22,904 (39,787)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 12,152 (34,678)
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (9,386) (15,034)
Net realized gain - (1,606)
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (9,386) (16,640)
- -------------------------------------------------------------------------------
Capital share transactions*
Shares sold 21,838 130,192
Distributions reinvested 8,481 15,078
Shares redeemed (13,288) (59,260)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 17,031 86,010
- -------------------------------------------------------------------------------
==Net=Assets===================================================================
Increase (decrease) during period 19,797 34,692
Beginning of period 148,111 113,419
- -------------------------------------------------------------------------------
===============================================================================
End of period $ 167,908 $ 148,111
===============================================================================
*Share information
Shares sold 2,372 11,727
Distributions reinvested 922 1,389
Shares redeemed (1,457) (5,335)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 1,837 7,781
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Foreign Bond Funds
- --------------------------------
Unaudited June 30, 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 Global Bond Fund (the Global
Fund), the International Bond Fund (the International Fund), and the Emerging
Markets Bond Fund (the Emerging Markets Fund), nondiversified, open-end
management investment companies, are three of the portfolios established by the
corporation and commenced operations on December 31, 1990, September 10, 1986,
and December 30, 1994, respectively.
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 Debt securities are generally traded in the over-the-counter
market and are valued at a price deemed best to reflect fair value as quoted by
dealers who make markets in these securities or by an independent pricing
service. Equity securities are valued at the last quoted sales price at the time
the valuations are made. A security which is listed of 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. In the absence of a last sale
price, purchased options are valued at the latest bid price.
For purposes of determining each 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 each
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.
<PAGE>
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. Distributions to shareholders are
recorded by each 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. Unrealized gains and losses on forward currency exchange
contracts are included in Other assets and other liabilities, respectively, and
in Change in net unrealized gain or loss in the accompanying financial
statements. Credits earned on daily, uninvested cash balances at the custodian
are used to reduce each fund's custody charges.
================================================================================
NOTE 2 - INVESTMENT TRANSACTIONS
================================================================================
Consistent with their investment objectives, the funds engage in the
following practices to manage exposure to certain risks or enhance performance.
The investment objective, policies, program, and risk factors of each fund are
described more fully in each fund's prospectus and Statement of Additional
Information.
Emerging Markets At June 30, 1999, each fund held investments in securities
of companies located in emerging markets or issued by governments of emerging
market countries. Future economic or political developments could adversely
affect the liquidity or value, or both, of such securities.
Noninvestment-Grade Debt Securities At June 30, 1999, each fund held
investments in noninvestment-grade debt securities, commonly referred to as
"high-yield" or "junk" bonds. A real or perceived economic downturn or higher
interest rates could adversely affect the liquidity or value, or both, of such
securities because such events could lessen the ability of issuers to make
principal and interest payments.
Forward Currency Exchange Contracts At June 30, 1999, each fund was a party
to forward currency exchange contracts under which it is obligated to exchange
currencies at specified future dates and exchange rates. Risks arise from the
possible inability of counterparties to meet the terms of their agreements and
from movements in currency values.
Options Call and put options give the holder the right to purchase or sell,
respectively, a security at a specified price on a certain date. Risks arise
from possible illiquidity of the options market and from movement in security
values. Options are reflected in the accompanying Portfolio of Investments at
market value.
Securities Lending Each 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
<PAGE>
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 June 30, 1999, the value of
loaned securities and aggregate collateral in the securities lending collateral
pool were as follows:
Emerging
Global International Markets
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
Loaned securities $ 3,060,000 $ 72,355,000 $ 37,138,000
Collateral 3,570,000 87,932,000 38,045,000
Other Purchases and sales of portfolio securities, other than short-term
securities, for the six months ended June 30, 1999, were as follows:
Emerging
Global International Markets
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
U.S. government securities
Purchases $ 4,864,000 $ - $ 3,711,000
Sales 9,134,000 - 2,608,000
Other securities
Purchases 20,218,000 472,483,000 60,635,000
Sales 17,988,000 403,234,000 50,239,000
================================================================================
NOTE 3 - FEDERAL INCOME TAXES
================================================================================
No provision for federal income taxes is required since each fund intends
to continue to qualify as a regulated investment company and distribute all of
its taxable income. As of December 31, 1998, the Emerging Markets Fund had
capital loss carryforwards for federal income tax purposes of $6,491,000, all of
which expires in 2006. The Emerging Markets Fund intends to retain gains
realized in future periods that may be offset by available capital loss carry
forwards.
At June 30, 1999, the costs of investments for the Global, International,
and Emerging Markets Funds were substantially the same for federal income tax
purposes as for financial reporting and totaled $37,684,000, $905,552,000, and
$178,621,000, respectively. Net unrealized gain (loss) on investments was as
follows:
Emerging
Global International Markets
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
Appreciated investments $ 104,000 $ 3,687,000 $ 5,050,000
Depreciated investments (2,231,000) (71,384,000) (20,283,000)
Net unrealized gain (loss) $(2,127,000) $ (67,697,000) $(15,233,000)
<PAGE>
================================================================================
NOTE 4 - RELATED PARTY TRANSACTIONS
================================================================================
Each 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 each fund and the manager
provides for an annual investment management fee, of which $4,000, $475,000, and
$110,000 were payable at June 30, 1999, by the Global, International, and
Emerging Markets Funds, respectively. The fee is computed daily and paid
monthly, and consists of an individual fund fee equal to 0.35% of average daily
net assets for the Global Fund, 0.35% of average daily net assets for the
International Fund, and 0.45% of average daily net assets for the Emerging
Markets Fund, 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 0.30%
for assets in excess of $80 billion. At June 30, 1999 and for the six months
then ended, the effective annual group fee rate was 0.32%. Each fund pays a
pro-rata share of the group fee based on the ratio of its net assets to those of
the group.
Under the terms of the investment management agreement, the manager is
required to bear any expenses of the Global and Emerging Markets Funds, which
would cause each fund's ratio of total expenses to average net assets to exceed
1.00% for the Global Fund and 1.25% for the Emerging Markets Fund. Through
December 31, 2002, Global and Emerging Markets Funds are 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 each
fund's ratio of total expenses to average net assets to exceed 1.00% and 1.25%,
respectively. Pursuant to the Global Fund's agreement, $93,000 of management
fees were not accrued for the six months ended June 30, 1999; an additional
$248,000 of unaccrued management fees from a previous agreement remains subject
to reimbursement through December 31, 2000. Pursuant to the Emerging Markets
Fund's previous agreement, $26,000 of unaccrued 1997-1998 fees were repaid
during the six months ended June 30, 1999, and $166,000 remains subject to
reimbursement through December 31, 2000.
In addition, each fund has entered into agreements with Price Associates
and two wholly owned subsidiaries of Price Associates, pursuant to which each
fund receives certain other services. Price Associates computes the daily share
price and maintains the financial records of each fund. T. Rowe Price Services,
Inc. is each fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the funds. T. Rowe Price Retirement
Plan Services, Inc. provides subaccounting and recordkeeping services for
certain retirement accounts invested in each fund. The Global, International,
and Emerging Markets Funds incurred expenses pursuant to these related party
agreements totaling approximately $100,000, $398,000 and $136,000, respectively,
for the six months ended June 30, 1999, of which $20,000, $121,000 and $28,000,
respectively, were payable at period-end.
<PAGE>
Additionally, each 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 Income Fund held
approximately 36.8% of the outstanding shares of the International Fund and
59.0% of the outstanding shares of the Emerging Markets Fund at June 30, 1999.
Spectrum International Fund held 1.9% of the outstanding shares of the Emerging
Markets Fund at June 30, 1999. For the six months then ended, the International
Fund was allocated $361,000 of Spectrum expenses, $52,000 of which was payable
at period-end, and the Emerging Markets Fund was allocated $116,000 of Spectrum
expenses, of which $21,000 was payable at period-end.
The funds 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 Global, International, and Emerging Markets Funds for the
six months ended June 30, 1999, totaled $26,000, $861,000 and $24,000,
respectively, and are reflected as interest income in the accompanying Statement
of Operations.
================================================================================
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*Access (Registration Mark)
and the T. Rowe Price Web site on the Internet. Address:
www.troweprice.com
<PAGE>
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.
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 January 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
<PAGE>
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
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
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***
<PAGE>
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.
** Formerly named Florida Insured Intermediate Tax-Free.
*** Formerly named Tax-Free Insured Intermediate Bond.
+ 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.
===========================================================================
T. Rowe Price Retirement Plans and Resources
RETIREMENT PLANS AND RESOURCES
We recognize that saving for retirement is the number one
investment goal for most Americans. We can help you meet your
retirement needs, whether you are starting an IRA or designing a
retirement program for your employees. T. Rowe Price offers an
assortment of retirement plans for individuals, the
self-employed, small businesses, corporations, and nonprofit
organizations. We provide recordkeeping, communications, and
investment management services, as well as a variety of
educational materials, self-help planning guides, and software
tools to help you choose and implement a retirement plan
appropriate for you. For information or to request literature,
call us at 1-800-638-5660.
<PAGE>
IRAs AND QUALIFIED PLANS
------------------------
Traditional IRA
Roth IRA
Rollover IRA
SEP-IRA
SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase Pension and Profit Sharing Plans)
401(k)
403(b)
457 Deferred Compensation
RETIREMENT RESOURCES AT T. ROWE PRICE
-------------------------------------
PLANNING AND INFORMATIONAL GUIDES
---------------------------------
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
INVESTMENT KITS
---------------
The IRA Investing Kit
Roth IRA Conversion Kit
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh Plan [Registration Mark] From T. Rowe Price
The T. Rowe Price 401(k) Century Plan [Registration Mark] (for small
businesses)
Money Purchase Pension/Profit Sharing Plan Kit
Investing for Retirement in Your 403(b) Account
The T. Rowe Price No-Load Variable Annuity Information Kit
INSIGHTS REPORTS
----------------
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
<PAGE>
SOFTWARE PACKAGES
-----------------
T. ROWE PRICE RETIREMENT PLANNING ANALYZER [TM] CD-ROM or
diskette $19.95. To order, please call
1-800-541-5760. Also available
on the Internet for $9.95.
T. ROWE PRICE VARIABLE ANNUITY ANALYZER [TM] CD-ROM or diskette,
free. To order, please call 1-800-469-5304.
Many of these resources are also available for viewing or
ordering on the Internet at www.troweprice.com.
===========================================================================
FOR YIELD, PRICE, LAST
TRANSACTION, CURRENT BALANCE,
OR TO CONDUCT TRANSACTIONS, 24
HOURS, 7 DAYS A WEEK, CALL
TELE*ACCESS [REGISTRATION
MARK:] 1-800-638-2587 toll
free
FOR ASSISTANCE WITH YOUR
EXISTING FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
TO OPEN A BROKERAGE ACCOUNT OR
OBTAIN INFORMATION, CALL:
1-800-638-5660 toll free
<PAGE>
INTERNET ADDRESS:
www.troweprice.com
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.
INVESTOR CENTERS:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
4200 West Cypress St.
10th Floor
Tampa, FL 33607
4410 ArrowsWest Drive
Colorado Springs, CO 80907
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills, CA 91367
T. Rowe Price Investment Services, Inc., Distributor. C15-051 6/30/99
