<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Semiannual Report
Emerging Markets Stock Fund
--------------------------------------------------------------------------------
April 30, 2000
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REPORT HIGHLIGHTS
================================================================================
EMERGING MARKETS STOCK FUND
---------------------------
* The past six months and year were rewarding for investors as emerging
market stocks posted solid returns.
* The fund's performance over the 6- and 12-month periods ended April 30,
2000, far surpassed the benchmark index and Lipper average.
* Outstanding relative results were due to both stock selection and the
fund's heavier exposure to robust markets.
* We shifted part of the portfolio out of high-growth stocks into
steady-growth areas expected to benefit from accelerating regional
economies.
* A combination of strong economic growth and reasonable stock valuations in
emerging markets makes us optimistic about prospects for the rest of 2000.
================================================================================
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
-------------------
The six months ended April 30, 2000, were extremely rewarding for investors
in emerging markets as most developing regions posted robust returns. The
economic backdrop continued to improve almost universally, and economies that
were in crisis just a short time ago rebounded impressively.
******************************************************************
PERFORMANCE COMPARISON
----------------------
Periods Ended 4/30/00 6 Months 12 Months
--------------------- -------- ---------
Emerging Markets Stock Fund 33.75% 49.85%
MSCI Emerging Markets
Free Index 13.87 22.11
Lipper Emerging Markets
Funds Average 21.35 29.84
******************************************************************
Your fund's returns for the 6- and 12-month periods shown in the table far
outpaced the performance of the MSCI Emerging Markets Free Index and the Lipper
Emerging Markets Funds Avera ge. The fund's outstanding relative results were
due primarily to stock selection in high-growth sectors that led the way. The
major regional contributions to positive performance came from India, Israel,
and Poland where we were overweighted versus the competition; our minimal
exposure to the weak markets of South Africa and Greece also helped performance
versus the benchmarks. Technology and software stocks propelled the Indian
market higher, as did nonbank financial stocks.
Poland enjoyed healthy economic growth and leadership from the information
technology sector where we have significant positions. In South Africa, the weak
rand and anemic economic growth were a drag on share prices. Our stock
highlights were ICICI, an Indian financial stock, which more than doubled in
price during the past six months, and Israeli pharmaceutical producer Teva
Pharmaceutical Industries, whose earnings growth continues to accelerate. In
Poland, Elektrim, the diversified telecom operator, rose strongly as cellular
phone subscribers continued to exceed expectations.
Russian industrial production rebounded more than 10% over 12 months,
Brazil's fiscal situation is again manageable, and even Indonesia is once again
experiencing growth. Commodity prices, led by oil, have risen and helped boost
exports in many emerging countries. In line with trends in the developed world,
stocks in the telecom, media, and technology sectors led emerging equity
markets. However, some of the excitement in these areas started to fade in late
March and early April as the U.S. Nasdaq Composite Index suffered a sharp
correction. Over the period, we shifted about 6% of the portfolio out of these
higher-growth areas into sectors offering steadier growth with reasonable
valuations -- beverages, pharmaceuticals, and nonbank financials. We will remain
vigilant on stock selection as emerging markets have become increasingly focused
on a select group of winners, and bad news surrounding these companies is
greeted savagely by investors.
***************************************************
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.
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.
***************************************************
MARKET REVIEW
-------------
FAR EAST
Asian markets were mixed. Stocks in India, Malaysia, and Taiwan were
strongest, while weakness prevailed in Thailand, Indonesia, and the Philippines.
In India the story remains largely defined by the thriving New Economy, led by
the technology sectors based in Bangalore. Following sharp appreciation in tech
stocks, we trimmed our positions in Zee Telefilms, the multimedia company with
domi- nant Hindi language programming, as valuations looked stretched. Taiwan
shares endured a roller-coaster ride thanks to the election in that country.
Chen's election prompted concerns that tension with China would rise because of
his stance favoring independence. However, he softened his position to some
extent afterward, and the strong, liquidity-driven rally continued, primarily in
technology stocks. Taiwan retains a leadership position in the semiconductor
industry, a nd the firming of spot prices in this area certainly helped. In
contrast, the Southeast Asian markets were generally sluggish. While economic
growth is slowly picking up there, the regulatory environment has been slow to
improve, and the level of bad debts in the banking system remains a significant
problem. We remain underweighted in this area.
**********************************************************
MARKET PERFORMANCE
------------------
(In U.S. Dollar Terms)
Periods Ended 4/30/00 6 Months 12 Months
--------------------- -------- --------
Argentina 1.88% -4.18%
Brazil 37.98 33.37
Chile 12.01 4.31
China (Free) -20.71 -10.59
Israel (Nondomestic) 89.22 85.69
Malaysia (Free) 24.04 68.11
Mexico 21.04 16.37
Poland 24.23 14.69
South Africa -2.21 1.78
Thailand -1.13 -13.75
Source: RIMES Online, using MSCI indices.
**********************************************************
LATIN AMERICA
-------------
We increased our exposure to Latin America by 5% of the portfolio during
the past six months. Markets in the region were generally strong, with BRAZILIAN
stocks rising 38% and MEXICAN equities 21%. ARGENTINA was an exception as the
market there was up less than 2%. Brazil was the main catalyst in the region as
its fiscal position continued to improve and interest rates are falling. It is
now hoped that the primary budget surplus will exceed 3% of GDP. Given Brazil's
close trade ties to Argentina, where deflation seems to be end ing, the latter
should also benefit. The Argentine stock market was given a boost when
Telefonica de Espana offered to buy out minority holdings in its subsidiary
TELEFONICA DE ARGENTINA.
In Mexico, the picture remained positive. GDP continues to grow at more
than 4% a year, helped by Mexico's strong trade ties to the U.S. An election is
slated for June. Although past elections have prompted financial crises, that
seems unlikely to happen this time with strong foreign investments flowing into
the country and cash reserves in excess of $30 billion on hand. Consumer
confidence is rising, which has triggered a sharp pickup in sales for beverage
companies and in retail sales.
We have a significant position in Grupo Sanborns. In the telecom area,
Telefonos de Mexico, the largest holding in the portfolio, continues to enjoy
dominant positions across all areas of the telecom market and yet still sells at
only seven times cash flow.
EUROPE
------
***************************************
[Pie chart showing Latin America 27%, Far East 37%, Europe 16%, Africa and
Middle East 14%, Other and Reserves 6%]
***************************************
The markets of Emerging Europe did well overall, with Russian stocks up
sharply and the market in Poland advancing 24% despite a weak currency dragged
down by the falling euro. In Russia the market rallied ahead of the March
election of Vladimir Putin as president. While Putin has consolidated his power
base and imposed some authoritarian measures, he has also taken some early steps
to appoint well-known market reformers to his Cabinet. In addition, the economy
is recovering with industrial production up more than 10% in a year, helped
largely by strong oil prices. We have kept our position in LUKoil at more than
1% of the portfolio, but we are not inclined to raise it until clearer
structural improvements are made in the economy. Telecom stocks look expensive
relative to their peers in other markets, and financial reporting is poor across
all sectors. In Poland, GDP growth exceeded 5% and consumer confidence is
buoyant. One of our best-performing stocks here was Elektrim, the diversified
telecom operator whose mobile phone penetration is now over 10% of the market.
One concern we have is the current account deficit, now more than 7.5% of GDP.
For now we are relaxed about it as foreign investments help finance this
deficit, and much of the growth in imports is in capital equipment rather than
consumer goods.
The markets were mixed in the Mediterranean region, as the market in Turkey
exploded late in 1999 before fading this year, and stocks in Greece were weak.
In Turkey, an IMF stabilization policy drove bond prices higher and yields down
from over 80% to 40%. We eliminated our positions in Akbank and Sabanci. We
remained underweighted in Greece, since stock valuations were too high following
a rally. However, we retained our holdings in Hellenic Telecommunications and
Antenna TV. Antenna looks attractive compared with other global TV operators,
and we believe the low valuation of its share price is unjustified given the
company's unrivaled library of Greek language programs and advertising
leadership.
AFRICA AND MIDDLE EAST
----------------------
************************************************************************
INDUSTRY DIVERSIFICATION
------------------------
Percent of Net Assets
10/31/99 4/30/00
-------- -------
Services 36.8% 37.3%
Capital Equipment 15.0 17.7
Finance 17.6 16.6
Consumer Goods 17.2 11.9
Energy 5.2 5.1
Multi-industry 1.3 2.0
All Other 3.6 3.6
Reserves 2.5 5.1
Other Assets Less Liabilities 0.8 0.7
Total 100.0% 100.0%
************************************************************************
Israeli stocks powered ahead, rising 89% during the six-month period.
Inflation fell to very low levels and the technology and pharmaceutical sectors
were solid performers. Orbotech, the global leader in the testing of printed
circuit boards and flat panel displays, delivered robust results. South Africa,
however, was a disappointment as the stock market fell 2% in U.S. dollar terms,
reflecting a 10% drop in the value of the rand versus the greenback. The economy
moved out of recession, but recovery has been slow given the high level of
consumer debt. The government made good strides in its fight to constrain
inflation and also stood its ground against the unions when strikes were
threatened. However, more structural reforms are needed to improve the poor
level of worker productivity, and racial violence in nearby Zimbabwe has had a
further dampening effect on the climate for stocks. We remain underweighted in
this market, eliminated our position in Standard Bank, and trimmed back on
M-Cell because of its high stock valuation.
OUTLOOK
-------
Overall, the outlook for emerging markets remains extremely positive.
Economic growth is accelerating, trade balances are far healthier following
significant structural change in response to the recent crises, and stock
valuations look reasonable in historical terms. As always, much depends on stock
performance in developed markets, particularly the U.S.
While the backdrop remains healthy, the more interesting question is which
sectors will perform best. With growth reviving, we have shifted back somewhat
into steady growth rather than high growth areas. We believe that in the
emerging markets many of the telecom and media stocks still offer good growth at
attractive prices. They will not be immune from further volatility in the U.S.,
particularly in the technology sphere, but a combination of steady growth and
reasonable stock valuat ions for fundamentally sound companies makes us
optimistic about prospects for the rest of the year.
Respectfully submitted,
/s/
Martin G. Wade
Chairman
/s/
John R. Ford
President
May 26, 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.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
-----------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
4/30/00
-------------------------------------------------------------------
Telefonos de Mexico, Mexico 4.9%
-------------------------------------------------------------------
Samsung Electronics, South Korea 4.3
-------------------------------------------------------------------
Telebras, Brazil 3.6
-------------------------------------------------------------------
China Telecom, Hong Kong 2.6
-------------------------------------------------------------------
Taiwan Semiconductor Manufacturing, Taiwan 2.6
-------------------------------------------------------------------
Yapi Kredi Bankasi, Turkey 2.2
-------------------------------------------------------------------
Petrol Brasileiros, Brazil 2.1
-------------------------------------------------------------------
Teva Pharmaceutical Industries, Israel 1.9
-------------------------------------------------------------------
Egypt Mobile Phone, Egypt 1.8
-------------------------------------------------------------------
Grupo Televisa, Mexico 1.7
-------------------------------------------------------------------
Dogan Yayin Holding, Turkey 1.7
-------------------------------------------------------------------
South Korea Telecom, South Korea 1.7
-------------------------------------------------------------------
Matav-Cable Systems Media, Hungary 1.5
-------------------------------------------------------------------
Orbotech, Israel 1.5
-------------------------------------------------------------------
ICICI, India 1.5
-------------------------------------------------------------------
United Micro Electric, Taiwan 1.5
-------------------------------------------------------------------
Antenna TV, Greece 1.5
-------------------------------------------------------------------
Elektrim, Poland 1.4
-------------------------------------------------------------------
Housing Development Finance, India 1.3
-------------------------------------------------------------------
HonHai Precision, Taiwan 1.2
-------------------------------------------------------------------
LUKoil, Russia 1.2
-------------------------------------------------------------------
Powerchip Semiconductors, Taiwan 1.2
-------------------------------------------------------------------
Korea Telecom, South Korea 1.2
-------------------------------------------------------------------
Global Tele-Systems, India 1.1
-------------------------------------------------------------------
Zee Telefilms, India 1.1
-------------------------------------------------------------------
Total 48.3%
Note: Table excludes reserves.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
-----------------------------------------
PERFORMANCE COMPARISON
----------------------
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
MSCI Emerging Markets Lipper Emerging Markets Emerging Markets
Date Free Index Funds Average Stock Fund
---- --------------------- ----------------------- ----------------
3/31/95 10,000 10,000 10,000
4/95 10,449 10,389 10,460
4/96 11,951 12,109 12,131
4/97 12,464 13,171 12,888
4/98 10,652 12,311 12,828
4/99 9,567 10,165 10,375
4/00 11,682 12,932 15,547
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 Years 5 Years Inception Date
--------------------- ------ ------- ------- --------- ----
Emerging Markets Stock Fund 49.85% 6.45% 8.25% 9.07% 3/31/95
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
----------------------------------------- Unaudited
For a share outstanding throughout each period
Financial Highlights
6 Months Year 3/31/95
Ended Ended Through
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
NET ASSET VALUE
Beginning of period $ 11.08 $ 7.95 $ 11.08 $ 11.59 $ 10.48 $ 10.00
--------------------------------------------------------------------------------
Investment activities
Net investment
income (loss) 0.01 (0.01)* 0.05* 0.02* 0.02* 0.02*
Net realized and
unrealized gain (loss) 3.72 3.18 (3.06) (0.23) 1.08 0.44
--------------------------------------------------------------------------------
Total from
investment activities 3.73 3.17 (3.01) (0.21) 1.10 0.46
--------------------------------------------------------------------------------
Distributions
Net investment income - (0.04) - (0.04) (0.01) -
Net realized gain - - (0.15) (0.30) - -
--------------------------------------------------------------------------------
Total distributions - (0.04) (0.15) (0.34) (0.01) -
--------------------------------------------------------------------------------
Redemption fees added
to paid-in-capital 0.01 - 0.03 0.04 0.02 0.02
--------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 14.82 $ 11.08 $ 7.95 $ 11.08 $ 11.59 $ 10.48
Ratios/Supplemental Data
Total return** 33.75% 40.08%* (27.31)%* (1.60)%* 10.69%* 4.80%*
--------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.49%+ 1.75%* 1.75%* 1.75%* 1.75%* 1.75%+*
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.14%+ (0.14)%* 0.46%* 0.21%* 0.44%* 0.54%+*
--------------------------------------------------------------------------------
Portfolio turnover rate 50.6%+ 59.0% 54.5% 84.3% 41.7% 28.8%+
--------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $182,832 $108,418 $69,752 $119,285 $67,896 $14,399
--------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions and payment of no redemption or account fees.
* Excludes expenses in excess of a 1.75% voluntary expense limitation in
effect through 10/31/01.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
-----------------------------------------
Unaudited April 30, 2000
In thousands
PORTFOLIO OF INVESTMENTS Shares Value
ARGENTINA 1.4%
Common Stocks 1.4%
Banco Frances del Rio de la Plata ADR (USD) 22,960 $ 453
---------------------------------------------------------------------------
Banco Rio de la Plata (Class B) ADR (USD) 32,630 453
---------------------------------------------------------------------------
PC Holdings 245,065 373
---------------------------------------------------------------------------
Telecom Argentina (Class B) ADR (USD) 41,240 1,152
---------------------------------------------------------------------------
Telefonica de Argentina (Class B) ADR (USD) 2,220 78
---------------------------------------------------------------------------
Total Argentina (Cost $3,271) 2,509
---------------------------------------------------------------------------
BRAZIL 10.3%
Common Stocks 6.5%
Companhia Vale do Rio Doce ADR (USD) 40,000 998
---------------------------------------------------------------------------
Embratel Participacoes ADR (USD) 53,700 1,208
---------------------------------------------------------------------------
Pao de Acucar GDR (USD) 53,418 1,523
---------------------------------------------------------------------------
Tele Centro Sul Participacoes ADR (USD) 2,302 147
---------------------------------------------------------------------------
Tele Norte Leste Participacoes ADR (USD) 8,601 153
---------------------------------------------------------------------------
Telebras ADR (USD) 55,380 6,545
---------------------------------------------------------------------------
Telecomunicacoes de Sao Paulo ADR (USD) 7,379 186
---------------------------------------------------------------------------
Telesp Celular 10,000 441
---------------------------------------------------------------------------
Unibanco GDR (USD) 26,000 648
---------------------------------------------------------------------------
11,849
---------------------------------------------------------------------------
Preferred Stocks 3.8%
Banco Itau 24,054,600 1,798
---------------------------------------------------------------------------
Brahma 916,141 665
---------------------------------------------------------------------------
Cia Energetica Minas Gerais 35,116,123 535
---------------------------------------------------------------------------
Petrol Brasileiros 16,409,000 3,909
---------------------------------------------------------------------------
6,907
---------------------------------------------------------------------------
Total Brazil (Cost $18,996) 18,756
---------------------------------------------------------------------------
CHILE==1.0%================================================================
Common Stocks 1.0%
Banco Santiago ADR (USD) 24,400 482
---------------------------------------------------------------------------
Compania de Telecomunicaciones de
Chile (Class A) ADR (USD) 13,955 258
---------------------------------------------------------------------------
Embotelladora Andina ADR (USD) 16,358 190
---------------------------------------------------------------------------
Enersis ADS (USD) 48,147 897
---------------------------------------------------------------------------
Total Chile (Cost $2,253) 1,827
---------------------------------------------------------------------------
CHINA==0.5%================================================================
Common Stocks 0.5%
PetroChina (HKD) 5,610,000 $ 872
---------------------------------------------------------------------------
Total China (Cost $922) 872
---------------------------------------------------------------------------
CROATIA==0.5%==============================================================
Common Stocks 0.5%
Pliva d.d. GDR (USD) 81,441 1,018
---------------------------------------------------------------------------
Total Croatia (Cost $1,329) 1,018
---------------------------------------------------------------------------
CZECH=REPUBLIC==1.1%=======================================================
Common Stocks 1.1%
Ceske Radiokomunikace 18,942 858
---------------------------------------------------------------------------
Komercni Banka 53,072 1,222
---------------------------------------------------------------------------
Total Czech Republic (Cost $1,638) 2,080
---------------------------------------------------------------------------
EGYPT==3.4%================================================================
Common Stocks 3.4%
Al Ahram Beverages S.A.E. (USD) * 104,298 1,835
---------------------------------------------------------------------------
Egypt Mobile Phone * 86,274 3,289
---------------------------------------------------------------------------
Lakah Group (USD) * 163,678 1,142
---------------------------------------------------------------------------
Total Egypt (Cost $4,884) 6,266
---------------------------------------------------------------------------
ESTONIA==0.9%==============================================================
Common Stocks 0.9%
Eesti Telekom GDR (USD) 69,455 1,597
---------------------------------------------------------------------------
Total Estonia (Cost $1,539) 1,597
---------------------------------------------------------------------------
GREECE==2.2%===============================================================
Common Stocks 2.2%
Antenna TV ADR (USD) * 139,225 2,676
---------------------------------------------------------------------------
Hellenic Telecommunication 63,476 1,429
---------------------------------------------------------------------------
Total Greece (Cost $3,904) 4,105
---------------------------------------------------------------------------
HONG=KONG==2.9%============================================================
Common Stocks 2.9%
China Telecom (Hong Kong) 657,000 $ 4,703
---------------------------------------------------------------------------
Legend Holdings 586,000 677
---------------------------------------------------------------------------
Total Hong Kong (Cost $1,578) 5,380
---------------------------------------------------------------------------
HUNGARY==2.9%==============================================================
Common Stocks 2.3%
EGIS * 33,121 1,454
---------------------------------------------------------------------------
Magyar Tavkozlesi Rt. 413,621 2,833
---------------------------------------------------------------------------
4,287
---------------------------------------------------------------------------
Preferred Stocks 0.6%
OTP Bank 22,704 1,006
---------------------------------------------------------------------------
1,006
---------------------------------------------------------------------------
Total Hungary (Cost $4,304) 5,293
---------------------------------------------------------------------------
INDIA==11.0%===============================================================
Common Stocks 11.0%
Apollo Hospitals 97,450 569
---------------------------------------------------------------------------
Britannia Industries 61,000 711
---------------------------------------------------------------------------
Cipla 52,000 1,063
---------------------------------------------------------------------------
Global E-Com * 87,000 526
---------------------------------------------------------------------------
Global Tele-Systems 76,000 2,080
---------------------------------------------------------------------------
HCL Infosystems 48,000 396
---------------------------------------------------------------------------
HCL Technologies * 6,400 228
---------------------------------------------------------------------------
HDFC Bank * 134,000 757
---------------------------------------------------------------------------
Hindustan Lever 27,500 1,509
---------------------------------------------------------------------------
Housing Development Finance 227,500 2,450
---------------------------------------------------------------------------
ICICI Limited 893,550 2,758
---------------------------------------------------------------------------
ICICI Bank Limited 180,520 979
---------------------------------------------------------------------------
ICICI Limited ADR(USD) 7,428 189
---------------------------------------------------------------------------
ITC 92,800 1,212
---------------------------------------------------------------------------
Mahanagar Telephone 116,000 598
---------------------------------------------------------------------------
McDowell 292,000 669
---------------------------------------------------------------------------
Pentafour Software 50,000 732
---------------------------------------------------------------------------
Ranbaxy Laboratories 43,000 $ 601
---------------------------------------------------------------------------
Zee Telefilms 127,900 2,080
---------------------------------------------------------------------------
Total India (Cost $15,230) 20,107
---------------------------------------------------------------------------
ISRAEL==6.0%===============================================================
Common Stocks 6.0%
Bank Leumi 412,270 896
---------------------------------------------------------------------------
Check Point Software Technologies (USD) 7,710 1,336
---------------------------------------------------------------------------
ECI Telecom (USD) 26,280 728
---------------------------------------------------------------------------
Elbit 19,082 177
---------------------------------------------------------------------------
Formula Systems * 12,130 615
---------------------------------------------------------------------------
Matav Cable System 41,820 903
---------------------------------------------------------------------------
Orbotech (USD) 33,010 2,815
---------------------------------------------------------------------------
Teva Pharmaceutical Industries ADR (USD) 78,750 3,460
---------------------------------------------------------------------------
Total Israel (Cost $7,800) 10,930
---------------------------------------------------------------------------
MEXICO==13.0%==============================================================
Common Stocks 13.0%
Cemex (Represents 2 Class A and 1 Class B shares) 242,540 1,050
---------------------------------------------------------------------------
Coca-Cola Femsa (Class L) ADR (USD) 62,000 1,151
---------------------------------------------------------------------------
Femsa UBD
(Represents 1 Class B and 4 Series D shares) 442,040 1,750
---------------------------------------------------------------------------
Gruma (Class B) 64,888 85
---------------------------------------------------------------------------
Grupo Elektra, Participating Certificates
(Represents 1 Class L and 2 Class B shares) 706,000 690
---------------------------------------------------------------------------
Grupo Financiero Banamex * 516,000 1,864
---------------------------------------------------------------------------
Grupo Financiero Bancomer * 2,859,000 1,276
---------------------------------------------------------------------------
Grupo Industrial Maseca (Class B) 311,000 144
---------------------------------------------------------------------------
Grupo Iusacell ADR (USD) * 95,500 1,522
---------------------------------------------------------------------------
Grupo Modelo (Class C) 252,000 536
---------------------------------------------------------------------------
Grupo Sanborns * 94,200 162
---------------------------------------------------------------------------
Grupo Televisa GDR (USD) * 50,000 3,172
---------------------------------------------------------------------------
Kimberly-Clark de Mexico (Class A) 150,000 483
---------------------------------------------------------------------------
Organizacion Soriana 70,000 279
---------------------------------------------------------------------------
Telefonos de Mexico (Class L) ADR (USD) 152,690 8,980
---------------------------------------------------------------------------
Wal-Mart de Mexico ADR (USD) 30,113 705
---------------------------------------------------------------------------
Total Mexico (Cost $18,800) 23,849
---------------------------------------------------------------------------
PERU==0.2%=================================================================
Common Stocks 0.2%
Credicorp (USD) 10,560 $ 112
---------------------------------------------------------------------------
Telefonica del Peru (Class B) ADR (USD) 14,160 214
---------------------------------------------------------------------------
Total Peru (Cost $478) 326
---------------------------------------------------------------------------
PHILIPPINES==0.3%==========================================================
Common Stocks 0.3%
La Tondena Distillers 318,000 212
---------------------------------------------------------------------------
San Miguel (Class B) 268,070 337
---------------------------------------------------------------------------
Total Philippines (Cost $955) 549
---------------------------------------------------------------------------
POLAND==3.0%===============================================================
Common Stocks 3.0%
Bank Slaski 9,654 583
---------------------------------------------------------------------------
Browary Zywiec 5,030 377
---------------------------------------------------------------------------
Computerland 32,288 672
---------------------------------------------------------------------------
Elektrim 201,005 2,563
---------------------------------------------------------------------------
Europejski Fundusz Leasingowy GDR (USD) * 44,279 844
---------------------------------------------------------------------------
Softbank 9,018 383
---------------------------------------------------------------------------
Total Poland (Cost $5,533) 5,422
---------------------------------------------------------------------------
RUSSIA==1.2%===============================================================
Common Stocks 1.2%
LUKoil (USD) 24,351 367
---------------------------------------------------------------------------
LUKoil ADR (USD) 30,350 1,829
---------------------------------------------------------------------------
Total Russia (Cost $3,208) 2,196
---------------------------------------------------------------------------
SOUTH=AFRICA==4.6%=========================================================
Common Stocks 4.6%
ABSA Group 345,100 1,221
---------------------------------------------------------------------------
De Beers 40,200 824
---------------------------------------------------------------------------
JD Group 50,300 339
---------------------------------------------------------------------------
M-Cell 253,400 1,357
---------------------------------------------------------------------------
Metropolitan Life 1,003,300 1,139
---------------------------------------------------------------------------
Rembrandt Group 37,000 287
---------------------------------------------------------------------------
Richemont Securities 37,530 $ 919
---------------------------------------------------------------------------
Sanlam 1,485,500 1,764
---------------------------------------------------------------------------
South African Breweries ADS (USD) * 69,491 511
---------------------------------------------------------------------------
Total South Africa (Cost $8,912) 8,361
---------------------------------------------------------------------------
SOUTH=KOREA==10.4%=========================================================
Common Stocks 10.4%
Housing & Commercial Bank 42,380 726
---------------------------------------------------------------------------
Hyundai Electric Industries 79,000 1,253
---------------------------------------------------------------------------
Korea Electric Power 33,000 966
---------------------------------------------------------------------------
Korea Telecom 22,800 1,557
---------------------------------------------------------------------------
Korea Telecom ADR (USD) 16,000 552
---------------------------------------------------------------------------
Korean Airlines 35,154 323
---------------------------------------------------------------------------
LG Chemicals 31,000 712
---------------------------------------------------------------------------
LG Information & Communications 16,035 1,235
---------------------------------------------------------------------------
Opicom 11,900 363
---------------------------------------------------------------------------
Samsung Electronics 29,405 7,949
---------------------------------------------------------------------------
Shinhan Bank 47,000 451
---------------------------------------------------------------------------
South Korea Telecom 11,390 3,028
---------------------------------------------------------------------------
Total South Korea (Cost $12,161) 19,115
---------------------------------------------------------------------------
TAIWAN==11.2%==============================================================
Common Stocks 11.2%
Acer Peripherals 101,000 418
---------------------------------------------------------------------------
Asustek Computer 92,000 1,019
---------------------------------------------------------------------------
Far East Textile 489,774 752
---------------------------------------------------------------------------
Hon Hai Precision * 232,800 2,245
---------------------------------------------------------------------------
Hon Hai Precision Industry (USD) 5,936 166
---------------------------------------------------------------------------
Powerchip Semiconductors GDR (USD) * 77,000 1,771
---------------------------------------------------------------------------
Powerchip Semiconductors 151,000 348
---------------------------------------------------------------------------
President Chain Store 317,514 1,131
---------------------------------------------------------------------------
Siliconware Precision Industries 372,590 846
---------------------------------------------------------------------------
Synnex Technology International 93,000 629
---------------------------------------------------------------------------
Systex 226,800 990
---------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing 728,540 4,691
---------------------------------------------------------------------------
United Microelectronics 801,650 2,712
---------------------------------------------------------------------------
Winbond Electronics GDR (144a) (USD) 37,400 1,184
---------------------------------------------------------------------------
WYSE Technology Taiwan 331,000 714
---------------------------------------------------------------------------
Yageo 243,000 $ 396
---------------------------------------------------------------------------
Yageo GDS (USD) 49,000 398
---------------------------------------------------------------------------
Total Taiwan (Cost $12,990) 20,410
---------------------------------------------------------------------------
THAILAND==1.0%=============================================================
Common Stocks and Rights 1.0%
Bangkok Bank * 494,500 838
---------------------------------------------------------------------------
TelecomAsia 593,300 795
---------------------------------------------------------------------------
TelecomAsia, Rights * 187,357 136
---------------------------------------------------------------------------
Total Thailand (Cost $1,864) 1,769
---------------------------------------------------------------------------
TURKEY==4.4%===============================================================
Common Stocks 4.4%
Dogan Yayin Holding 129,247,581 3,118
---------------------------------------------------------------------------
Hurriyet Gazete 35,231,964 893
---------------------------------------------------------------------------
Yapi ve Kredi Bankasi 126,957,187 4,049
---------------------------------------------------------------------------
Total Turkey (Cost $5,056) 8,060
---------------------------------------------------------------------------
VENEZUELA==0.6%============================================================
Common Stocks 0.6%
Compania Anonima Nacional Telefonos de Venezuela
(Class D) ADR (USD) 40,935 1,187
---------------------------------------------------------------------------
Total Venezuela (Cost $1,393) 1,187
---------------------------------------------------------------------------
UNITED=STATES==0.2%========================================================
Common Stocks 0.2%
IMPSAT Fiber Networks * 2,900 46
---------------------------------------------------------------------------
StarMedia Network * 14,000 305
---------------------------------------------------------------------------
Total United States (Cost $460) 351
---------------------------------------------------------------------------
SHORT-TERM=INVESTMENTS==5.1%===============================================
Money Market Funds 5.1%
Reserve Investment Fund, 6.18% # 9,295,352 9,295
---------------------------------------------------------------------------
Total Short-Term Investments (Cost $9,295) 9,295
=Total=Investments=in=Securities
99.3% of Net Assets (Cost $148,753) $181,630
Other Assets Less Liabilities 1,202
NET ASSETS $182,832
* Non-income producing
# Seven-day yield
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers - total of such securities at period-end amounts
to 0.65% of net assets.
ADR American depository receipt
ADS American depository share
GDR Global depository receipt
GDS Global depository share
HKD Hong Kong dollar
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
-----------------------------------------
Unaudited April 30, 2000
STATEMENT OF ASSETS AND LIABILITIES
----------------------------------- In thousands
ASSETS
------
Investments in securities, at value (cost $148,753) $ 181,630
Securities lending collateral 21,034
Other assets 2,841
--------------------------------------------------------------------------------
Total assets 205,505
--------------------------------------------------------------------------------
LIABILITIES
-----------
Obligation to return securities lending collateral 21,034
Other liabilities 1,639
--------------------------------------------------------------------------------
Total liabilities 22,673
--------------------------------------------------------------------------------
NET ASSETS $ 182,832
================================================================================
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 123
Accumulated net realized gain/loss - net of distributions (12,628)
Net unrealized gain (loss) 32,288
Paid-in-capital applicable to 12,333,707 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 163,049
--------------------------------------------------------------------------------
NET ASSETS $ 182,832
================================================================================
NET ASSET VALUE PER SHARE $ 14.82
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock Fund
----------------------------------------- Unaudited
STATEMENT OF OPERATIONS
----------------------- In thousands
6 Months
Ended
4/30/00
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $108) $ 1,017
Interest (net of foreign taxes of $1) 325
Securities lending 60
-------------------------------------------------------------------------------
Total income 1,402
-------------------------------------------------------------------------------
Expenses
Investment management 917
Shareholder servicing 221
Custody and accounting 91
Legal and audit 21
Prospectus and shareholder reports 13
Registration 11
Directors 3
Miscellaneous 2
-------------------------------------------------------------------------------
Total expenses 1,279
-------------------------------------------------------------------------------
Net investment income (loss) 123
-------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (net of foreign taxes of $1,046) 10,723
Foreign currency transactions (111)
-------------------------------------------------------------------------------
Net realized gain (loss) 10,612
-------------------------------------------------------------------------------
Change in net unrealized gain or loss
Securities (net of deferred foreign taxes of $121) 23,242
Other assets and liabilities
denominated in foreign currencies 4
-------------------------------------------------------------------------------
Change in net unrealized gain or loss 23,246
-------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 33,858
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 33,981
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock 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) $ 123 $ (124)
Net realized gain (loss) 10,612 (592)
Change in net unrealized gain or loss 23,246 29,048
-------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 33,981 28,332
-------------------------------------------------------------------------------
Distributions to shareholders
Net investment income - (352)
-------------------------------------------------------------------------------
Capital share transactions *
Shares sold 85,724 44,491
Distributions reinvested - 332
Shares redeemed (45,432) (34,186)
Redemption fees received 141 49
-------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 40,433 10,686
-------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period 74,414 38,666
Beginning of period 108,418 69,752
-------------------------------------------------------------------------------
End of period $ 182,832 $ 108,418
===============================================================================
*Share information
Shares sold 5,442 4,500
Distributions reinvested - 42
Shares redeemed (2,893) (3,529)
-------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 2,549 1,013
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Stock 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 Emerging Markets Stock Fund (the
fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on March 31,
1995. The fund seeks long-term growth of capital by investing primarily in the
common stocks of large and small companies located, or with primary operations,
in emerging markets.
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 foreig n exchange rates on realized and unrealized
security gains and losses is refle cted as a component of such gains and losses.
OTHER Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. Credits earned on daily uninvested cash balances
at the custodian are used to reduce the fund's custody charges.
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 $20,499,000; aggregate collateral consisted of $21,034,000
in the securities lending collateral pool and U.S. government securities valued
at $173,000.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $72,040,000 and $39,684,000, 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 had capital loss carryforwards
for federal income tax purposes of $23,125,000, of which $22,811,000 expires in
2006 and $314,000 expires in 2007. The fund intends to retain gains realized in
future periods that may be offset by available capital loss carryforwards.
At April 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled $148,753,000.
Net unrealized gain aggregated $32,877,000 at period-end, of which $44,570,000
related to appreciated investments and $11,693,000 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 withheld
from sales proceeds. A deferred tax liability is accrued on net unrealized
gains, which totaled $583,000 at April 30, 2000.
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
$168,000 was payable at April 30, 2000. The fee is computed daily and paid
monthly, and consists of an individual fund fee equal to 0.75% of average daily
net assets and a group fee. The group fee is based on the combined assets of
certain mutual funds sponsored by the manager or Price Associates (the group).
The group fee rate ranges from 0.48% for the first $1 billion of assets to
0.295% for assets in excess of $120 billion. At 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.
Under the terms of the investment management agreement, the manager was
required to bear any expenses through October 31, 2001, which would cause the
fund's ratio of total expenses to average net assets to exceed 1.75%.
Thereafter, through October 31, 2003, the fund is required to reimburse the
manager for these expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement without causing the
fund's ratio of total expenses to average net assets to exceed 1.75%.
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 retiremen t
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $237,000 for the six months
ended April 30, 2000, of which $44,000 was payable at period-end. Additionally,
the fund is one of several T. Rowe Price-sponsored mutual funds (underlying
funds) in which the T. Rowe Price Spectrum Funds (Spectrum) may invest. Spectrum
does not invest in the underlying funds for the purpose of exercising management
or control. Expenses associated with the operation of Spectrum are borne by each
underlying fund to the extent of estimated savings to it and in proportion to
the average daily value of its shares owned by Spectrum, pursuant to special
servicing agreements between and among Spectrum, the underlying funds, T. Rowe
Price, and, in the case of T. Rowe Price Spectrum International , Rowe
Price-Fleming International. Spectrum International Fund held approximately 2.2%
of the outstanding shares of the fund at April 30, 2 000. For the six months
then ended, the fund was allocated $7,000 of Spectrum expenses, $1,000 of which
was payable at period-end. The fund may invest in the Reserve Investment Fund
and Government Reserve Investment Fund (collectively, the Reserve Funds),
open-end management investment companies managed by T. Rowe Price Associates,
Inc. The Reserve Funds are offered as cash management options only to mutual
funds and other accounts managed by T. Rowe Price and its affiliates and are not
available to the public. The Reserve Funds pay no investment management fees.
Distributions from the Reserve Funds to the fund for the six months ended April
30, 2000, totaled $317,000 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
$5,126,000 with certain affiliates of the manager and paid commissions of
$17,000 related thereto.
================================================================================
FOR FUND AND ACCOUNT INFORMATION
OR TO CONDUCT TRANSACTIONS,
24 HOURS, 7 DAYS A WEEK
By touch-tone telephone
TELE*ACCESS 1-800-638-2587
By Account Access on the Internet
WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
<PAGE>
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears
on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus appropriate
to the fund or funds covered in this
report.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
DOWNTOWN
101 East Lombard Street
OWINGS MILLS
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F05-051 4/30/00
