<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Semiannual Report
New Asia Fund
--------------------------------------------------------------------------------
April 30, 2000
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REPORT HIGHLIGHTS
================================================================================
NEW ASIA FUND
-------------
* Asian markets generally rose in the past six months, but gave up much
of their gains late in the period.
* The fund advanced strongly, well in excess of its benchmarks, aided by
a focus on New Economy stocks in larger Asian markets.
* We took profits in technology, media, and telecommunications stocks as
investor euphoria drove share prices to unsustainable levels.
* The recent market correction has made valuations more reasonable, and
prospects for Asia's consumer-related and New Economy stocks appear
excellent.
================================================================================
UPDATES AVAILABLE
-----------------
For updates on T. Rowe Price funds following the end of each calendar
quarter, please see our Web site at www.troweprice.com.
================================================================================
FELLOW SHAREHOLDERS
-------------------
Markets in Asia spent the first four months of 2000 retracing much of the
spectacular advance they enjoyed late last year. Stocks in the Far East ex-Japan
gained just 5% in the six months ended April 30, and market leadership was
concentrated in a few sectors. So-called New Economy stocks held onto robust
gains despite a severe correction late in the period. Larger markets such as
Hong Kong, Taiwan, and India were also notably stronger than most of the
Southeast Asian markets. These two trends benefited the New Asia Fund, which
rose 29.04% in the period.
*******************************************************
PERFORMANCE COMPARISON
----------------------
Periods Ended 4/30/00 6 Months 12 Months
--------------------- -------- ---------
New Asia Fund 29.04% 53.06%
MSCIAll Country Far East
Free Ex-Japan Index 5.22 11.14
Lipper Pacific Ex-Japan
Funds Average 13.76 27.50
*******************************************************
<PAGE>
Your fund's performance was exceptional in both absolute and relative terms
for the 6- and 12-month perio ds ended April 30. Results exceeded those of our
benchmarks by a wide margin, as shown in the table, aided by our emphasis on
technology, media, and telecommunications stocks in large markets. The Morgan
Stanley Capital International All Country Far East Free Ex-Japan Index rose
5.22%, held back by its relatively greater exposure to cyclical stocks,
including financial and property shares, and to weaker markets such as Thailand
and Singapore. Just as in the U.S., the performance of tech and telecom stocks
was quite strong in Asia for much of the period, while stocks in other
industries generally struggled. The euphoria for New Economy stocks peaked in
early 2000, and they have fallen sharply since late March, removing much of the
speculative excess that had built up late last year. Global worries about
technology stock valuations and U.S. interest rates contributed to this
correction. The trend of economic data in Asia, however, remained positive.
PORTFOLIO REVIEW
----------------
We continue to focus on the best and most competitive companies in Asia --
businesses with solid franchises such as strong intellectual property, a
defensible niche, or clear market dominance. This strategy can work particularly
well during periods of high volatility, such as over the past 6- and 12-month
periods, when financial and cyclical stocks generally fare poorly.
Our concentration in the portfolio's top four markets grew during the past
six months, a function both of superior performance in these markets and of the
higher caliber of their companies. The fund's position in HONG KONG grew to 27%
of net assets from 25%, though it bears repeating that 38% of net assets were in
Hong Kong a year ago, a holdover from our defensive posture during the Asian
financial crisis of 1998. Exposure to TAIWAN grew to 22% of net assets from 19%
six months ago and 13% in April 1999. The fund's investments in SOUTH KOREA grew
slightly to 20% of net assets, and exposure to INDIA rose to 18% from 15% six
months ago.
***************************************************
T. ROWE PRICE BECOMES SOLE OWNER OF INTERNATIONAL INVESTMENT MANAGER
As an international investor, you may be
aware that the T. Rowe Price international
and global stock and bond funds have always
been managed by Rowe Price-Fleming
International, Inc., a joint venture formed
in 1979 between T. Rowe Price Associates and
London-based Robert Fleming Holdings,
Limited.
On April 11, 2000, T. Rowe Price announced an
agreement to purchase the 50% of the joint
venture owned by Flemings, thus becoming the
sole owner of the management company. In due
course, the name of Rowe Price-Fleming
International will be changed to reflect its
new status.
<PAGE>
The change in ownership structure will not
affect the investment approach or operations
of our international funds. We expect Rowe
Price-Fleming's leadership and professional
staff to remain in place, together with the
substantial resources and expertise built up
over the past 20 years. Likewise, there will
be no change in the offices in London, Hong
Kong, Tokyo, Singapore, Buenos Aires, Paris,
and Baltimore.
Under the U.S. securities laws, the
assignment of the funds' investment
management contract to a new entity is
subject to shareholder approval. Accordingly,
after the purchase is concluded later this
year, we will set a date for a shareholder
meeting and send you a proxy with voting
information.
The formation of Rowe Price-Fleming 20 years
ago opened the way for T. Rowe Price to
expand the investment services offered to
shareholders and clients. As an integral part
of T. Rowe Price, this very successful
international investment manager will provide
significant opportunities to enhance those
services.
***************************************************
As shown in the table, these four markets were among the best performers in
Asia during the period. Not coincidentally, they are also home to some of the
best companies in Asia or anywhere, in our view. TAIWAN SEMICONDUCTOR and South
Korea's SAMSUNG ELECTRONICS are genuine world-beaters - that is, they are at or
near the top global position in their respective fields. Taiwan Semiconductor is
the leading contract manufacturer of logic chips, while Samsung is a leading
maker of memory chips and is strong in telecommunications equipment and consumer
electronics. Other portfolio holdings, such as ZEE TELEFILMS, HINDUSTAN LEVER,
and GLOBAL TELE-SYSTEMS, all of India, are the best companies in rapidly growing
industries in their home markets. Even before the past year's craze for tech,
media, and telecom stocks, our focus on the highest-quality companies with the
best managements in Asia naturally led us to a relatively high weighting in
those sectors. However, we have largely avoided companies whose businesses are
still conceptual and have little in the way of sales or profits.
<PAGE>
******************************************************
Market Performance
------------------
(In U.S. Dollar Terms)
Periods Ended 4/30/00 6 Months 12 Months
--------------------- -------- ---------
China Free -20.71% -10.59%
Hong Kong 11.99 11.38
India 20.50 67.76
Malaysia 24.13 68.62
Philippines -22.45 -36.59
Singapore -0.40 22.43
Korea 2.13 21.42
Taiwan 15.18 29.01
Thailand -1.13 -13.75
Source: RIMES Online, using MSCI indices.
******************************************************
Despite our faith in this approach, markets sometimes get ahead of real
prospects. In such times, even good companies become too expensive and share
prices reach unsustainable levels. This happened in late December, and we took
profits in some of our favorite companies even though, in many cases, they were
precisely the businesses we want to own over the long term. In Hong Kong, for
example, we trimmed CHINA TELECOM (HONG KONG), mainland China's number one
mobile phone operator. In India, we significantly reduced our holdings in
RANBAXY LABORATORIEs, the country's top maker of branded generic drugs, and Zee
Telefilms, India's leading broadcaster. We sold half of our position in TELECOM
ASIA, the leading private telecommunications company in THAILAND.
*******************************************************
[Geographic Diversification, A pie chart showing Hong Kong, 27%; Taiwan,
22%; South Korea, 20%; India, 18%; Singapore, 4%; United Kingdom(1), 2%1;
Thailand, 1%; Other and Reserves, 6%]
Based on net assets as of 4/30/00.
(1) HSBC Holdings, a banking conglomerate
formerly based in Hong Kong, recently moved
its domicile to the U.K.
*******************************************************
<PAGE>
Proceeds of our sales were reinvested in companies poised to benefit from
increasing consumer spending in Asia. We increased our holdings in India's top
four financial institutions: ICICI, ICICI BANK, HOUSING DEVELOPMENT FINANCE, and
HDFC BANK. These compan- ies are taking market share away from the
government-owned banking sector by providing the superior service that customers
want. We also have built significant positions in Asia's leading investor-owned
health care providers - APOLLO HOSPITALS in India and PARKWAY HOLDINGS in
Singapore - because health-related spending is rising quickly from a very low
base. We added to existing positions in retailers such as ESPRIT HOLDINGS in
Hong Kong, and basic consumer goods company Hindustan Lever and tobacco giant
ITC in India. We also bought CATHAY PACIFIC AIRWAYS of Hong Kong and KOREAN AIR,
where new management initiatives are showing positiv e results.
OUTLOOK
-------
The recent market correction has brought share prices back to much more
attractive levels after a period of excessive speculation. In due course, this
volatility may present an opportunity to buy our favorite companies back again.
Unless higher interest rates cause a severe slowdown in the U.S. economy, Asian
economies should continue to recover. Export-oriented companies and countries
are the most vulnerable to a potential slackening of U.S. demand. The economic
recoveries of Thailand, Malaysia, Singapore, Korea, and Taiwan have been powered
overwhelmingly by exports. Other sectors have lagged. As a result, even with
signs of overheating in Korea, authorities have been reluctant to raise rates
because of continued proble ms in the banking sector.
******************************************************
INDUSTRY DIVERSIFICATION
------------------------
Percent of Net Assets
10/31/99 4/30/00
-------- -------
Services 25.3% 28.2%
Capital Equipment 16.9 27.5
Finance 22.7 21.3
Multi-industry 5.8 7.7
Consumer Goods 17.8 7.4
Energy 3.1 1.7
All Other 1.2 1.1
Reserves 7.2 5.1
Total 100.0% 100.0%
******************************************************
The companies with the best prospects, especially in an uncertain world
environment, are those that benefit from Asian consumer spending on housing,
health care, food, leisure, and communications. Even if the global economy
slows, consumers in Asia and around the world will continue to demand the latest
technology in mobile phones, home appliances, and cars (though perhaps at a less
frenetic pace). This bodes well for companies that make the basic building
blocks of these products, from semiconductors to plas-tic cases. The New Asia
Fund continues to own the best-in-class manufacturers of these components, as
most of them are located in Asia.
<PAGE>
*****************************
The companies with the best
prospects ... are those that
benefit from Asian consumer
spending ...
*****************************
We remain skeptical about reinvesting more in smaller Southeast Asian
economies such as Indonesia, Thailand, the Philippines, and Malaysia.
Unaddressed structural problems in their banking sectors are holding back their
economies. In addition, globalization and more open markets will bring fierce
and unwelcome competition to companies that have grown used to having their home
markets to themselves. We will continue to look for opportunities in companies
where management is better preparing for a more competitive environment.
Overall, we believe the outlook for investing in Asia is exciting. Trends
such as global economic growth, deregulation, competition, technological
advancement, and rising consumer incomes have created enormous opportunities for
Asian corporations to boost revenues, profits, and shareholder value.
Respectfully submitted,
/s/
Martin G. Wade
Chairmann R. Ford
/s/
John R. Ford
President
May 22, 2000
***************************************************
NEW PRESIDENT OF T. ROWE PRICE INTERNATIONAL FUNDS
After more than 20 years as president of T. Rowe
Price International Funds, Inc., Martin G. Wade
has passed the baton to his colleague, John R.
Ford. John Ford has been associated with T. Rowe
Price's international investment management arm
since 1984. He currently serves on the Investment
Advisory Committees of all the T. Rowe Price
international equity funds.
Mr. Wade was instrumental in the launching of T.
Rowe Price's first foreign stock offering, the
International Stock Fund, in 1980, and played a
key role thereafter in the company's increasing
presence as an international asset manager. He
remains associated with the International Funds as
chairman and is also a member of the Board of
Directors of T. Rowe Price Associates.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
4/30/00
----------
Samsung Electronics, South Korea 9.4%
Hutchison Whampoa, Hong Kong 7.0
Cheung Kong Holdings, Hong Kong 6.4
Taiwan Semiconductor Manufacturing, Taiwan 4.8
China Telecom (Hong Kong), Hong Kong 3.1
United Micro Electronics, Taiwan 2.8
Zee Telefilms, India 2.4
Korea Telecom, South Korea 2.3
Global Tele-Systems, India 2.3
South Korea Telecom, South Korea 2.2
ICICI, India 2.1
Hon Hai Precision Industry, Taiwan 2.0
Housing Development Finance, India 1.8
Cable & Wireless Hong Kong Telecom, Hong Kong 1.8
ICICI Bank, India 1.8
Powerchip Semiconductors, Taiwan 1.8
HSBC Holdings,United Kingdom 1.5
Li & Fung, Hong Kong 1.4
Far East Textile, Taiwan 1.3
Parkway Holdings, Singapore 1.2
Hyundai Electric Industries, South Korea 1.2
Dao Heng Bank Group, Hong Kong 1.1
Yageo, Taiwan 1.1
Korea Electric Power, South Korea 1.1
Asustek Computer, Traiwan 1.1
Total 65.0%
Note: Table excludes reserves.
================================================================================
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
PERFORMANCE COMPARISON
----------------------
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
<PAGE>
MSCI AC Far East Lipper Pacific
Free Ex-Japan Ex-Japan New Asia
Date Index Funds Average Fund
---- ---------------- -------------- --------
9/28/90 $10,000 $10,000 $10,000
4/91 13,203 12,256 12,246
4/92 16,066 13,071 13,076
4/93 20,422 15,632 15,378
4/94 28,582 19,748 20,314
4/95 28,155 19,131 18,856
4/96 35,312 23,288 22,728
4/97 32,656 22,090 21,117
4/98 19,102 14,234 14,027
4/99 24,009 16,158 15,539
4/00 26,682 21,578 23,784
AVERAGE ANNUAL COMPOUND TOTAL RETURN
------------------------------------
This table shows how the fund would have performed each year if its actual
(or cumulative)returns for the periods shown had been earned at a constant rate.
Since Inception
Periods Ended 4/30/00 1 Year 3 Year 5 Years Inception Date
--------------------- ------ ------ ------- --------- ---------
New Asia Fund 53.06% 4.04% 4.75% 9.46% 9/28/90
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
-------------------- 6 Months Year
Ended Ended
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
------- -------- -------- -------- -------- --------
NET ASSET VALUE
---------------
Beginning of period $ 7.20 $ 4.93 $ 5.95 $ 8.64 $ 8.12 $ 10.07
--------------------------------------------------------------------------------
Investment activities
Net investment
income (loss) 0.02 0.05 0.13 0.09 0.06 0.08
Net realized and
unrealized gain (loss) 2.07 2.31 (1.07) (2.71) 0.55 (1.07)
--------------------------------------------------------------------------------
Total from
investment activities 2.09 2.36 (0.94) (2.62) 0.61 (0.99)
--------------------------------------------------------------------------------
<PAGE>
Distributions
Net investment income (0.04) (0.09) (0.08) (0.06) (0.09) (0.07)
Net realized gain -- -- -- (0.01) -- (0.89)
--------------------------------------------------------------------------------
Total distributions (0.04) (0.09) (0.08) (0.07) (0.09) (0.96)
--------------------------------------------------------------------------------
NET ASSET VALUE
---------------
END OF PERIOD $ 9.25 $ 7.20 $ 4.93 $ 5.95 $ 8.64 $ 8.12
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
------------------------
Total return* 29.04% 48.73% (15.97)% (30.61)% 7.58% (9.70)%
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.07%+ 1.21% 1.29% 1.10% 1.11% 1.15%
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.34%+ 0.87% 2.33% 0.76% 0.66% 0.97%
--------------------------------------------------------------------------------
Portfolio turnover rate 57.7%+ 69.9% 68.1% 41.8% 42.0% 63.7%
--------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 1,214 $ 996 $ 633 $ 877 $ 2,041 $ 1,909
--------------------------------------------------------------------------------
* 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
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
Unaudited April 30, 2000
STATEMENT OF NET ASSETS Shares Value
----------------------- ------ -----
In thousands
CHINA 0.6%
----------
COMMON STOCKS 0.6%
PetroChina 48,340,000 $ 7,509
--------------------------------------------------------------------------------
Total China (Cost $7,947) 7,509
----------
<PAGE>
HONG KONG 27.0%
----------------
COMMON STOCKS 27.0%
Cable & Wireless Hong Kong Telecom 9,063,177 21,409
--------------------------------------------------------------------------------
Cathay Pacific Airways 3,018,000 5,366
--------------------------------------------------------------------------------
Cheung Kong Holdings 6,493,000 77,524
--------------------------------------------------------------------------------
China Telecom (Hong Kong) 5,240,000 37,504
--------------------------------------------------------------------------------
Citic Pacific 1,780,000 8,181
--------------------------------------------------------------------------------
Dah Sing Financial 1,303,400 5,104
--------------------------------------------------------------------------------
Dao Heng Bank Group 2,987,760 13,809
--------------------------------------------------------------------------------
DVB Holdings 3,072,000 1,390
--------------------------------------------------------------------------------
Esprit Holdings 9,089,988 9,686
--------------------------------------------------------------------------------
Great Eagle Holdings 3,885,000 6,634
--------------------------------------------------------------------------------
Henderson Land Development 2,210,000 9,675
--------------------------------------------------------------------------------
Hutchison Whampoa 5,849,000 84,853
--------------------------------------------------------------------------------
Legend Holdings 4,060,000 4,691
--------------------------------------------------------------------------------
Li & Fung 4,406,000 17,196
--------------------------------------------------------------------------------
New World China Land 3,290,830 841
--------------------------------------------------------------------------------
Pacific Century CyberWorks 966,000 1,798
--------------------------------------------------------------------------------
Sa Sa International Holdings 21,505,000 3,755
--------------------------------------------------------------------------------
Sino Land 10,598,000 3,980
--------------------------------------------------------------------------------
South China Morning Post 7,946,000 8,467
--------------------------------------------------------------------------------
Varitronix International 2,453,000 5,590
--------------------------------------------------------------------------------
Total Hong Kong (Cost $193,298) 327,453
----------
INDIA 18.1%
------------
COMMON STOCKS 18.1%
Apollo Hospitals 803,000 4,691
--------------------------------------------------------------------------------
Britannia Industries 491,500 5,731
--------------------------------------------------------------------------------
Cipla 415,000 8,485
--------------------------------------------------------------------------------
Global E-Com * 984,000 $ 5,954
--------------------------------------------------------------------------------
Global Tele-Systems 1,028,000 28,141
--------------------------------------------------------------------------------
<PAGE>
HCL Infosystems 354,000 2,919
--------------------------------------------------------------------------------
HCL Technologies * 59,000 2,102
--------------------------------------------------------------------------------
HDFC Bank 1,094,000 6,177
--------------------------------------------------------------------------------
Hindustan Lever 213,700 11,725
--------------------------------------------------------------------------------
Housing Development Finance 2,070,800 22,297
--------------------------------------------------------------------------------
ICICI Bank Limited ADR (USD) * 453,800 7,828
--------------------------------------------------------------------------------
ICICI Bank Limited 1,791,842 9,717
--------------------------------------------------------------------------------
ICICI Limited ADR (USD) 149,304 3,789
--------------------------------------------------------------------------------
ICICI Limited 8,316,000 25,669
--------------------------------------------------------------------------------
ITC 902,500 11,783
--------------------------------------------------------------------------------
Mahanagar Telephone 2,195,000 11,317
--------------------------------------------------------------------------------
McDowell 1,960,800 4,492
--------------------------------------------------------------------------------
Pentafour Software 542,000 7,940
--------------------------------------------------------------------------------
Ranbaxy Laboratories 703,500 9,831
--------------------------------------------------------------------------------
Zee Telefilms 1,817,800 29,568
--------------------------------------------------------------------------------
Total India (Cost $152,829) 220,156
----------
PHILIPPINES 0.6%
-----------------
COMMON STOCKS 0.6%
La Tondena Distillers 4,084,800 2,721
--------------------------------------------------------------------------------
San Miguel (Class B) 3,545,405 4,465
--------------------------------------------------------------------------------
Total Philippines (Cost $12,856) 7,186
----------
SINGAPORE 4.2%
---------------
COMMON STOCKS 4.2%
DBS Group Holdings 722,443 9,949
--------------------------------------------------------------------------------
Delgro 1,518,000 3,736
--------------------------------------------------------------------------------
GES International 8,079,000 9,942
--------------------------------------------------------------------------------
Parkway Holdings 5,107,000 14,664
--------------------------------------------------------------------------------
Singapore Press 262,719 5,142
--------------------------------------------------------------------------------
Singapore Telecommunications 5,101,000 7,353
--------------------------------------------------------------------------------
Total Singapore (Cost $49,499) 50,786
----------
<PAGE>
SOUTH KOREA 19.5%
------------------
COMMON STOCKS 19.5%
Housing & Commercial Bank 453,100 $ 7,758
--------------------------------------------------------------------------------
Hyundai Electric Industries 891,000 14,131
--------------------------------------------------------------------------------
Korea Electric Power 451,540 13,224
--------------------------------------------------------------------------------
Korea Telecom 282,600 19,303
--------------------------------------------------------------------------------
Korea Telecom ADR (USD) 267,000 9,211
--------------------------------------------------------------------------------
Korean Air 391,650 3,600
--------------------------------------------------------------------------------
LG Chemicals 283,000 6,503
--------------------------------------------------------------------------------
LG Information & Communications 115,305 8,884
--------------------------------------------------------------------------------
Mirae 881,900 4,561
--------------------------------------------------------------------------------
Opicom 127,500 3,883
--------------------------------------------------------------------------------
Samsung Electronics 421,492 113,942
--------------------------------------------------------------------------------
Serome Technology 13,483 397
--------------------------------------------------------------------------------
Shinhan Bank 543,000 5,211
--------------------------------------------------------------------------------
South Korea Telecom 98,240 26,115
--------------------------------------------------------------------------------
Total South Korea (Cost $120,477) 236,723
----------
TAIWAN 22.0%
-------------
COMMON STOCKS 22.0%
Acer Peripherals 1,955,000 8,083
--------------------------------------------------------------------------------
Acer Sertec 1,898,000 10,422
--------------------------------------------------------------------------------
Asustek Computer 1,183,677 13,115
--------------------------------------------------------------------------------
Far East Textile 10,339,502 15,884
--------------------------------------------------------------------------------
Hitron Technology 1,184,000 7,585
--------------------------------------------------------------------------------
Hon Hai Precision Industry 1,966,800 18,964
--------------------------------------------------------------------------------
Hon Hai Precision Industry GDR (144a) (USD)* 209,051 5,854
--------------------------------------------------------------------------------
Powerchip Semiconductor GDR (USD)* 792,000 18,216
--------------------------------------------------------------------------------
<PAGE>
Powerchip Semiconductor 1,341,000 3,090
--------------------------------------------------------------------------------
President Chain Store 3,064,824 10,919
--------------------------------------------------------------------------------
Siliconware Precision Industries 5,070,120 11,517
--------------------------------------------------------------------------------
Synnex Tech 1,171,000 $ 7,923
--------------------------------------------------------------------------------
Systex 2,648,800 11,558
--------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing 9,066,519 58,379
--------------------------------------------------------------------------------
United Microelectronics 10,056,200 34,019
--------------------------------------------------------------------------------
Winbond Electronics GDR (144a) (USD)* 368,300 11,657
--------------------------------------------------------------------------------
WYSE Technology Taiwan 3,007,000 6,487
--------------------------------------------------------------------------------
Yageo 7,009,740 11,410
--------------------------------------------------------------------------------
Yageo GDS (USD) 243,000 1,974
--------------------------------------------------------------------------------
Total Taiwan (Cost $163,183) 267,056
----------
THAILAND 1.4%
--------------
COMMON STOCKS 1.4%
Bangkok Bank * 5,173,800 8,767
--------------------------------------------------------------------------------
TelecomAsia 5,060,000 6,780
--------------------------------------------------------------------------------
TelecomAsia * 1,597,894 1,161
--------------------------------------------------------------------------------
Total Thailand (Cost $18,768) 16,708
----------
UNITED KINGDOM 1.5%
--------------------
COMMON STOCKS 1.5%
HSBC Holdings (HKD) 1,621,634 18,165
--------------------------------------------------------------------------------
Total United Kingdom (Cost $14,666) 18,165
----------
VIETNAM 0.0%
------------
Common Stocks 0.0%
Lazard Vietnam Fund (USD) * 152,800 159
--------------------------------------------------------------------------------
Total Vietnam (Cost $309) 159
----------
SHORT-TERM INVESTMENTS 4.5%
----------------------------
MONEY MARKET FUNDS 4.5%
Reserve Investment Fund, 6.18% # 54,824,185 54,824
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $54,824) 54,824
----------
<PAGE>
TOTAL INVESTMENTS IN SECURITIES
99.4% of Net Assets (Cost $788,656) $ 1,206,725
Other Assets Less Liabilities 6,921
----------
NET ASSETS $ 1,213,646
----------
NET ASSETS CONSIST OF:
Accumulated net investment income - net of distributions $ 1,669
Accumulated net realized gain/loss - net of distributions (240,193)
Net unrealized gain (loss) 411,634
Paid-in-capital applicable to 131,188,173 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 1,040,536
----------
NET ASSETS $ 1,213,646
----------
NET ASSET VALUE PER SHARE $ 9.25
----------
* Non-income producing
# Seven-day yield
ADR American depository receipt
GDR Global depository receipt
GDS Global depository share
144a Security was purchased pursuant to Rule
144a under the Securities Act of 1933 and
may not be resold subject to that rule
except to qualified institutional buyers -
total of such securities at period-end
amounts to 1.4% of net assets.
HKD Hong Kong dollar
USD U.S. dollar
================================================================================
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
Unaudited
STATEMENT OF OPERATIONS
-----------------------
In thousands
6 Months
Ended
4/30/00
--------
INVESTMENT INCOME (LOSS)
------------------------
INCOME
Dividend (net of foreign taxes of $628) $ 7,489
Interest (net of foreign taxes of $10) 1,624
Securities lending 203
Total income 9,316
--------
<PAGE>
EXPENSES
Investment management 5,415
Shareholder servicing 1,234
Custody and accounting 287
Prospectus and shareholder reports 73
Legal and audit 27
Registration 20
Directors 3
Miscellaneous 4
--------
Total expenses 7,063
Expenses paid indirectly (1)
--------
Net expenses 7,062
--------
Net investment income (loss) 2,254
--------
REALIZED AND UNREALIZED GAIN (LOSS)
-----------------------------------
Net realized gain (loss)
Securities (net of foreign taxes of $10,078) 117,085
Foreign currency transactions (244)
--------
Net realized gain (loss) 116,841
--------
Change in net unrealized gain or loss
Securities (net of deferred foreign taxes of $1,284) 181,610
Other assets and liabilities
denominated in foreign currencies (106)
--------
Change in net unrealized gain or loss 181,504
--------
Net realized and unrealized gain (loss) 298,345
--------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 300,599
--------
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
In thousands 6 Months Year
Ended Ended
4/30/00 10/31/99
------- --------
INCREASE (DECREASE) IN NET ASSETS
---------------------------------
Operations
Net investment income (loss) $ 2,254 $ 6,847
Net realized gain (loss) 116,841 17,705
Change in net unrealized gain or loss 181,504 285,186
-----------------------
Increase (decrease) in net assets from operations 300,599 309,738
-----------------------
Distributions to shareholders
Net investment income (5,468) (11,370)
-----------------------
Capital share transactions *
Shares sold 814,612 934,309
Distributions reinvested 5,226 10,841
Shares redeemed (897,152) (880,525)
-----------------------
Increase (decrease) in net assets from capital
share transactions (77,314) 64,625
-----------------------
NET ASSETS
----------
Increase (decrease) during period 217,817 362,993
Beginning of period 995,829 632,836
-----------------------
END OF PERIOD $ 1,213,646 $ 995,829
-----------------------
*Share information
Shares sold 83,968 150,881
Distributions reinvested 574 2,217
Shares redeemed (91,585) (143,305)
-----------------------
Increase (decrease) in shares outstanding (7,043) 9,793
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
--------------------------------------------------------------------------------
Unaudited April 30, 2000
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 New Asia Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation and commenced operations on September 28, 1990.
The fund seeks long-term growth of capital through investments in large and
small companies located, or with primary operations, in Asia (excluding Japan).
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
VALUATION Equity securities are valued at the last quoted sales price at
the time the valuations are made. A security which is listed or traded on more
than one exchange is valued at the quotation on the exchange determined to be
the primary market for such security.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
CURRENCY TRANSLATION Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such gains and losses.
OTHER Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. Expenses paid indirectly reflect credits earned
on daily uninvested cash balances at the custodian and are used to reduce the
fund's custody charges.
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NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
EMERGING MARKETS At April 30, 2000, the fund held investments in securities
of companies located in emerging markets. Future economic or political
developments could adversely affect the liquidity or value, or both, of such
securities.
SECURITIES LENDING The fund lends its securities to approved brokers to
earn additional income and receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a money
market pooled account by the fund's lending agent. Collateral is maintained over
the life of the loan in an amount not less than 100% of the value of loaned
securities. Although risk is mitigated by the collateral, the fund could
experience a delay in recovering its securities and a possible loss of income or
value if the borrower fails to return them. At April 30, 2000, the value of
loaned securities was $30,109,000; aggregate collateral consisted of $31,833,000
in the securities lending collateral pool.
OTHER Purchases and sales of portfolio securities, other than short-term
securities, aggregated $359,971,000 and $442,023,000, respectively, for the six
months ended April 30, 2000.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income. As of October 31, 1999, the fund has capital loss carryforwards
for federal income tax purposes of $355,216,000, all of which expires in 2006.
The fund intends to retain gains realized in future periods that may be offset
by available capital loss carryforwards.
At April 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled $788,656,000.
Net unrealized gain aggregated $418,069,000 at period-end, of which $465,922,000
related to appreciated investments and $47,853,000 to depreciated investments.
NOTE 4 - FOREIGN TAXES
The fund is subject to foreign income taxes imposed by certain countries in
which it invests. Foreign income taxes are accrued by the fund and withheld from
dividend and interest income.
Gains realized upon disposition of Indian securities held by the fund are
subject to capital gains tax in India. The tax on realized gains is paid prior
to repatriation of sales proceeds. A deferred tax liability is accrued on net
unrealized gains and totaled $6,328,000 at April 30, 2000.
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NOTE 5 - RELATED PARTY TRANSACTIONS
The fund is managed by Rowe Price-Fleming International, Inc. (the
manager), which is owned by subsidiaries of T. Rowe Price Associates, Inc.
(Price Associates) and Robert Fleming Holdings Limited (Fleming). Price
Associates has entered into an agreement with Fleming to purchase Fleming's
interest in the manager.
The investment management agreement between the fund and the manager
provides for an annual investment management fee, of which $881,000 was payable
at April 30, 2000. The fee is computed daily and paid monthly, and consists of
an individual fund fee equal to 0.50% of average daily net assets and a group
fee. The group fee is based on the combined assets of certain mutual funds
sponsored by the manager or Price Associates (the group). The group fee rate
ranges from 0.48% for the first $1 billion of assets to 0.295% for assets in
excess of $120 billion. At April 30, 2000, and for the six-months then ended,
the effective annual group fee rate was 0.32%. The fund pays a pro-rata share of
the group fee based on the ratio of its net assets to those of the group.
In addition, the fund has entered into agreements with Price Associates and
two wholly owned subsidiaries of Price Associates, pursuant to which the fund
receives certain other services. Price Associates computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $1,017,000 for the six months
ended April 30, 2000, of which $235,000 was payable at period-end.
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum)
may invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum International Fund
held approximately 0.1% of the outstanding shares of the fund at April 30, 2000.
For the six months then ended, the fund was allocated $3,000 of Spectrum
expenses.
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The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the six months ended April 30, 2000, totaled
$1,574,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the six months ended April 30, 2000, the fund, in the ordinary
course of business, placed security purchase and sale orders aggregating
$42,569,000 with certain affiliates of the manager and paid commissions of
$110,000 related thereto.
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FOR FUND AND ACCOUNT INFORMATION
OR TO CONDUCT TRANSACTIONS,
24 HOURS, 7 DAYS A WEEK
By touch-tone telephone
TELE*ACCESS 1-800-638-2587
By Account Access on the Internet
WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears
on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus appropriate
to the fund or funds covered in this
report.
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WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
DOWNTOWN
101 East Lombard Street
OWINGS MILLS
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F39-051 4/30/00
