<PAGE>
================================================================================
T. Rowe Price
- --------------------------------------------------------------------------------
Annual Report
Foreign Bond Funds
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
FOREIGN BOND FUNDS
- ------------------
* Prices of high-quality developed country bonds fell in 1999 as
economic activity improved and central banks raised interest rates.
The euro fell against the dollar.
* Emerging market bonds posted strong returns, recovering from the
financial crises of 1998.
* The International Bond and Global Bond funds rose slightly in the
second half but declined for the year. The Emerging Markets Bond Fund
delivered solid gains.
* While the developed bond markets face further rate increases in the
near term, we believe the longer-term outlook remains positive because
of high after-inflation yields.
================================================================================
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
- -------------------
Investors in high-quality bonds in the U.S. and overseas may be anxious to
forget 1999 -- the most difficult year for bonds since 1994. Most of the damage
from rising interest rates and falling bond prices was done in the first half,
however, and investment-grade bonds managed positive total returns in the final
six months. The euro's decline against the U.S. dollar, especially in the first
half, added to the weakness in high-quality euro bonds.
The 1998 flight to quality in U.S. and European bonds became a flight away
from interest rate risk as U.S. growth powered ahead and foreign economies
recovered more quickly than expected. Central banks in both regions raised
short-term interest rates throughout the second half. The Global Bond Fund and
the International Bond Fund rose slightly over the past six months but still
declined on the year. In keeping with the theme of global economic strength, the
Emerging Markets Bond Fund posted strong results in both periods.
<PAGE>
MARKET ENVIRONMENT
- ------------------
************************************************************
DEVELOPED MARKETS PERFORMANCE
- -----------------------------
In Local In U.S.
6 Months Ended 12/31/99 Currency Dollars
----------------------- -------- -------
Australia -0.08% -1.22%
France -1.73 -4.49
Germany -1.48 -4.24
Italy -1.59 -4.35
Japan 2.37 21.06
Spain -1.69 -4.44
United Kingdom 0.63 2.89
United States -0.11 -0.11
Source: J.P. Morgan.
************************************************************
Of all the developed country bond markets in the world, the one with
perhaps the weakest fundamentals -- Japan -- performed the best in both U.S.
dollar and local currency terms over the past six months, as shown in the table.
Despite the expected massive issuance of government debt to stimulate the
economy, Japanese bonds posted modest gains in yen terms and outstanding gains
in dollar terms given the 18% rise of the yen in the second half. A record
influx of foreign equity investments boosted the yen, and surplus cash in the
banking system was reinvested in Japanese government bonds. Economic data
suggested more of a bottoming than a meaningful recovery, but signs that
Japanese companies were serious about restructuring attracted foreign investors.
************************************************************
EMERGING MARKETS PERFORMANCE
----------------------------
In U.S.
6 Months Ended 12/31/99 Dollars
----------------------- -------
Emerging Markets Bond Index Plus 13.93%
Brady Indexes (by issuer): *
Argentina 12.78
Brazil 19.88
Mexico 11.56
Poland 4.43
Venezuela 7.44
* Brady bonds are restructured debt obligations
of many emerging market countries that enable
these nations to repay loans while they implement
economic reforms. The bonds are denominated in U.S.
dollars and have extended maturities and lower
interest rates.
Source: J.P. Morgan.
************************************************************
<PAGE>
Though economies in Europe began to recover, the euro continued to
flounder. Financial markets remained uneasy about the credibility of euro zone
institutions and the durability of the Economic and Monetary Union (EMU). The
euro declined 3% in the second half, and 17% for the year. Nevertheless, one
benefit of a common currency did materialize -- the corporate bond market in the
euro zone sprang to life in 1999. Issuance surpassed that of the U.S. in the
euro's first year, spurred by merger-and-acquisition activity.
Bond returns were negative in most other developed markets in the second
half, as investors expected more short-term rate hikes to come in 2000. The U.S.
economy grew at a 5.5% annualized rate in the fourth quarter, and the Federal
Reserve increased the key federal funds rate by a quarter of a percentage point
in early February. Another ratehike was expected in March. Long-term U.S.
Treasury yields rose from about 5% at the start of 1999 to nearly 6.5% by the
end. U.K. bonds were an exception, managing modest returns despite rate
increases by the central bank. In contrast to the euro, the currencies of the
U.K. and Sweden, both of which remain outside the euro zone, were only slightly
weaker against the U.S. dollar for the year.
Lower-quality bonds were the bright spots in this environment. U.S.
high-yield ("junk") bonds managed an anemic gain for the year, but the fledgling
European high-yield sector turned in an impressive 11% return. Emerging market
bonds did not suffer long in the wake of Brazil's currency devaluation in
January, and gained 25% for the year, led by Russian and Brazilian debt. Russian
bonds, the basket case of 1998, returned a stunning 165% last year.
GLOBAL BOND FUND
- ----------------
************************************************************
PERFORMANCE COMPARISON
- ----------------------
Periods Ended 12/31/99 6 Months 12 Months
---------------------- -------- ---------
Global Bond Fund 1.66% -6.69%
--------------------------------------------------------
J.P. Morgan Global Government
Bond Index (unhedged) 2.28 -5.08
--------------------------------------------------------
************************************************************
Despite a modest total return in the six months ended December 31,
performance was negative for 1999, as it was for most other high-quality,
long-term bond funds. Rising interest rates and falling bond prices, especially
in the U.S. and Europe, and the decline of the euro hurt peformance. Results for
both periods lagged the benchmark, as shown in the table. Our overweighted
position in the euro and longer duration were primarily responsible for this
shortfall in the first half of the year. (Duration measures a bond fund's
sensitivity to interest rates. For example, the share price of a fund with a
duration of six years will rise about 6% in response to a one-percentage-point
decline in rates, and fall about 6% in response to an equivalent increase in
rates.) Late in the first half, we reduced duration to a neutral posture in our
U.S. and European holdings, and also trimmed euro exposure. We underperformed in
the second half principally because we were underweighted in Japanese bonds and
in the strong yen. Our cautious stance in Japan has yet to be rewarded. Overall,
we continued to reduce duration, from 5.9 years six months ago to 5.4 years at
the end of the period.
<PAGE>
************************************************************
GLOBAL BOND FUND PORTFOLIO DIVERSIFICATION
- ------------------------------------------
United States 43%
United Kingdom 7%
Supranational 6%
Germany 5%
Netherlands 5%
Denmark 5%
France 4%
Other and Reserves 25%
- -----------------------------------------
Total 100.0%
NET CURRENCY EXPOSURE:
- ----------------------
Euro 36.6%
U.S. dollar 26.1
Japanese yen 18.4
U.K. pound 5.8
Canadian dollar 5.4
Danish krone 4.7
Other 3.0
- -----------------------------------------
Total 100.0%
Based on net assets as of 12/31/99. Percentages reflect the
issuing country of the fund's securities.Excludes the effects
of forward currency contracts.
************************************************************
Total euro exposure -- our largest single currency position -- was up
slightly from June 30 at 36.6%, as shown in the chart on the previous page. This
represents a modest overweighting versus the index, and we intend to maintain
this posture because we expect the euro to strengthen, as we discuss in the
Outlook section. A supply-and-demand imbalance caused long-term U.K. bonds to
rally, pushing yields down toward 4% -- compared with nearly 6.5% for long-term
U.S. Treasuries. We consider U.K. long bonds extremely overvalued at this level.
Although government bonds outside Japan performed poorly all year, most of
the price erosion occurred in the first half before official rates were raised.
Nonetheless, nongovernment bonds, including investment-grade corporates and
especially high-yield bonds, fared better than government debt. Both these
sectors were eclipsed by emerging market bonds, which rallied along with the
global economy. Stronger world growth means higher revenues for emerging market
governments and corporations. Your fund's 13% exposure to high-yield and
emerging market debt combined (the rewarding European high-yield sector
included) partially offset the negative contributions discussed earlier. Average
credit quality remained high at AA+. (See the Portfolio Highlights table on page
10.)
<PAGE>
Australian bond allocations were cut back after the market outperformed.
However, we maintained a slight overweight position in the Canadian dollar. Your
fund also benefited from a trade in South African bonds. Markets in all three
countries were aided by the rebound in commodity prices. We also had a 2%
allocation to Greece that performed well as investors anticipated that country's
entry into the EMU in 2001.
INTERNATIONAL BOND FUND
- -----------------------
************************************************************
PERFORMANCE COMPARISON
----------------------
Periods Ended 12/31/99 6 Months 12 Months
---------------------- -------- ---------
International Bond Fund 1.92% -7.86%
--------------------------------------------------------
J.P. Morgan Non-U.S. Dollar
Government Bond Index 3.49 -6.17
--------------------------------------------------------
************************************************************
The poor performance of high-quality foreign bonds in 1999 was reflected in
fund performance. Though the fund posted a small positive return in the second
half -- thanks to coupon income -- total return for the year remained in the
red. Improving economies around the world drove interest rates up and bond
prices down. Bonds denominated in the new euro fell even more sharply for U.S.
investors because of the dollar's strength. Performance in both periods lagged
the benchmark. In the first half, our larger position in the euro compared with
the benchmark, along with the fund's longer duration, caused the shortfall.
(Duration measures a bond fund's sensitivity to interest rates. For example, the
share price of a fund with a duration of six years will rise about 6% in
response to a one-percentage-point decline in rates, and fall about 6% in
response to an equivalent increase in rates.) In the second quarter, we reduced
duration to a neutral posture for European bonds, and we also modestly trimmed
euro exposure. The fund's second half underperformance is attributable to our
underweighting in Japanese bonds and, especially, the yen, which was quite
strong. We have been cautious on Japan for some time, but this stance has not
benefited the fund to date. Duration was reduced even further in the second
half, from 5.9 years on June 30 to 5.2 years at the end of the year.
************************************************************
INTERNATIONAL BOND FUND PORTFOLIO DIVERSIFICATION
- -------------------------------------------------
United States 15%
Germany 15%
United Kingdom 11%
Supranational 9%
Netherlands 6%
Denmark 6%
Italy 5%
Other and Reserves 33%
- ------------------------------------------
Total 100.0%
<PAGE>
NET CURRENCY EXPOSURE:
- ----------------------
Euro 54.5%
Japanese yen 24.9
U.K. pound 8.9
Canadian dollar 6.5
Danish krone 5.2
- ------------------------------------------
Total 100.0%
Based on net assets as of 12/31/99. Percentages reflect the
issuing country of the fund's securities. Excludes the effects
of forward currency contracts.
************************************************************
The fund is run in similar fashion to the Global Bond Fund, with the
exception that the International Bond Fund does not invest in the U.S. and does
not attempt, for the most part, to hedge against currency risk. Indeed, one
reason for choosing the International Bond Fund over the Global Bond Fund is to
protect a portion of your assets from possible weakness in the U.S. dollar. This
strategy did not reward investors in 1999.
Exposure to the euro remained little changed from six months ago at 54.5%
as shown in the Portfolio Diversification chart. We will maintain this slightly
overweighted position versus the index because we consider the euro
significantly undervalued and expect it to rise from these levels, as we discuss
in the Outlook section. U.K. bonds rallied modestly in the second half, due
mainly to supply-and-demand factors, and yields fell toward 4%. Given yields of
nearly 6.5% on long-term U.S. Treasuries, we consider U.K. long bonds extremely
overvalued. However, our re duction of duration in the U.K. did not provide any
performance benefit in the second half.
Government bonds outside Japan were poor performers all year, but most of
the price declines came in the first half, before central banks began raising
rates. Nongovernment bonds, particularly investment-grade corporates and
especially high-yield bonds, fared better than government securities. The
best-performing sector was emerging market debt, which surged as global
economies strengthened, improving the outlook for issuers' credit ratings. Your
fund's 14% exposure to high-yield and emerging market debt combined partially
offset the negative contributions discussed earlier. The European high-yield
market began to blossom this year thanks to EMU, and returns were strong.
Average credit quality remained high at AA+. (See the Portfolio Highlights table
on page 10.)
We reduced our holdings of Australian bonds following their
out-performance, but maintained a slightly overweight allocation to the Canadian
dollar. The fund also made a successful trade in South African bonds. All three
countries benefited from the recovery in commodity prices. Our 2% exposure to
Greece performed well as investors expect the country to join the euro zone next
year and adhere to the requisite fiscal standards.
<PAGE>
EMERGING MARKETS BOND FUND
- --------------------------
************************************************************
PERFORMANCE COMPARISON
- ----------------------
Periods Ended 12/31/99 6 Months 12 Months
---------------------- -------- ---------
Emerging Markets Bond Fund 14.03% 22.97%
--------------------------------------------------------
J.P. Morgan Emerging Markets
Bond Index Plus 13.93 25.97
--------------------------------------------------------
************************************************************
Your fund posted strong gains in both the second half of 1999 and the full
year, as shown in the table. Performance was slightly ahead of the index for the
past six months, and modestly behind for the year. The index is dominated by the
large Latin American markets of Argentina, Brazil, and Mexico, which together
make up two-thirds of the benchmark. We continue to favor a more broadly
diversified approach, which can cause the fund to lag the index when one or more
of the "big three" are leading performers (as Brazil was in 1999). The fund is
underweight in Brazil relative to the index, even though fully a fifth of the
portfolio is invested there. Positive contributions to performance came from our
reduced emphasis on Argentina, modest overweighting in Russia, and from our
longstanding overweighted position in Bulgaria.
************************************************************
EMERGING MARKET GEOGRAPHIC DIVERSIFICATION
- ------------------------------------------
Brazil 20%
Mexico 13%
Argentina 12%
Bulgaria 9%
Russia 7%
United States 6%
Venezuela 6%
Other and Reserves 27%
- ------------------------------------------
Total 100.0%
Based on net assets as of 12/31/99. Percentages reflect the
issuing country of the fund's securities. Excludes the effects
of forward currency contracts.
************************************************************
The spread of the global recovery into Asia and the emerging markets was
the main impetus for the surge in emerging market debt. As always, there was a
bump along the way -- in this case, the devaluation of the Brazilian real in
January -- but this proved to be a short-lived setback. In the second half,
higher U.S. interest rates and the forecast of further increases failed to halt
the rally in emerging market bonds. Oil prices more than doubled during the
year, boosting oil exporters such as Venezuela, Mexico, and Nigeria. Though the
latter should have gained due to its apparent return to democracy, it was a
laggard.
<PAGE>
In a reversal from 1998, Russia emerged as the best-performing emerging
debt market. The market benefited from improved fiscal performance, signs of
economic recovery, and a relatively more stable political scene (culminating
with President Yeltsin's handover of power to Vladimir Putin on the final day of
the year). Of the 165% gain in Russian debtlast year, 57% came in the fourth
quarter.
Brazil's congress passed key fiscal reforms, dealt firmly with inflation,
and beat IMF targets, while Argentina coped with a change of president. Mexico
benefited from its proximity to the strong U.S. economy and has detached itself
to a certain extent from the other Latin American markets. In the past six
months, the fund's exposure to Brazil and Mexico increased modestly, while we
reduced holdings in Argentina and Russia, where we took profits. Average credit
quality rose slightly to BB+, from BB six months ago. (See the Portfolio
Highlights table on page 11.)
OUTLOOK
- -------
We expect inflation to remain subdued in the major industrialized nations
- -- Japan may even continue to experience deflation. At these levels, real
interest rates (bond yields minus inflation) remain attractive compared with
recent history. Real rates are currently above 4% in both the U.S. and Europe,
which should provide support for the bond markets in the intermediate term.
However, concern about central bank rate increases may cause the negative tone
in developed country bond markets to linger through the first quarter. The U.S.
Federal Reserve is intent on reining in economic growth and the markets
currently anticipate the Fed will follow its February 2 rate hike with another
in March. Though mortgage rates have been driven higher, which could crimp U.S.
growth, wages and the wealth effect from a booming stock market have also
increased. A real slowdown may depend on lower stock prices and a drop in
consumer confidence.
*****************************
The euro's inauspicious
start has left it sharply
undervalued . . .
*****************************
There is less of a need for rate increases overseas. The euro's
inauspicious start has left it sharply undervalued, in our view. With Europe's
economies showing widespread improvement, the euro should be able to recoup some
of its losses. Growth should approach 3% in the euro zone, spurred by the
increased competitiveness of European exports and greater domestic consumption
fueled by higher consumer confidence. However, there should be few inflationary
pressures. Wage demands by European workers are a key factor; the European
Central Bank will be watching wage settlements closely to determine the
appropriate course on interest rates.
Though the Japanese economy appears to have turned a corner, growth will
likely be restrained by job losses associated with corporate restructuring. In
addition, the banking system is still not healthy enough to finance a real
recovery. We remain cautious on Japanese bonds. The government will continue to
attempt to stimulate the economy with spending. As long-term postal savings
accounts come up for renewal at sharply lower interest rates, savers are likely
to pull some deposits out of that system. Therefore, Japan faces the prospect of
significantly higher bond yields, excessive monetization of the debt, or both.
<PAGE>
Emerging market economies should continue to benefit from more balanced
global growth. Absent a pickup in inflation, which we do not expect, and a
greater-than-anticipated monetary tightening in the U.S., emerging market bonds
should continue to prove rewarding but volatile.
Respectfully submitted,
Peter B. Askew
/s/
Executive Vice President
February 2, 2000
================================================================================
T. Rowe Price Foreign Bond Funds
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
KEY STATISTICS
- --------------
6/30/99 12/31/99
------- --------
GLOBAL BOND FUND
- ----------------
Price Per Share $ 9.34 $ 9.29
- --------------------------------------------------------------------------------
Dividends Per Share
- --------------------------------------------------------------------------------
For 6 months 0.21 0.21
----------------------------------------------------------------------------
For 12 months + 0.47 0.42
----------------------------------------------------------------------------
Dividend Yield *
- --------------------------------------------------------------------------------
For 6 months 4.48% 4.33%
----------------------------------------------------------------------------
For 12 months 4.81 4.45
----------------------------------------------------------------------------
Weighted Average Maturity (years) 9.4 8.4
- --------------------------------------------------------------------------------
Weighted Average Effective Duration (years) 5.9 5.4
- --------------------------------------------------------------------------------
Weighted Average Quality ** AA+ AA+
- --------------------------------------------------------------------------------
INTERNATIONAL BOND FUND
- -----------------------
Price Per Share $ 9.17 $ 9.16
- --------------------------------------------------------------------------------
Dividends Per Share
- --------------------------------------------------------------------------------
For 6 months 0.19 0.19
----------------------------------------------------------------------------
<PAGE>
For 12 months + 0.44 0.38
----------------------------------------------------------------------------
Dividend Yield *
- --------------------------------------------------------------------------------
For 6 months 4.12% 4.01%
----------------------------------------------------------------------------
For 12 months 4.57 4.10
----------------------------------------------------------------------------
Weighted Average Maturity (years) 8.5 7.2
- --------------------------------------------------------------------------------
Weighted Average Effective Duration (years) 5.9 5.2
- --------------------------------------------------------------------------------
Weighted Average Quality ** AA+ AA+
- --------------------------------------------------------------------------------
EMERGING MARKETS BOND FUND
- --------------------------
Price Per Share $ 9.38 $ 10.11
- --------------------------------------------------------------------------------
Dividends Per Share
- --------------------------------------------------------------------------------
For 6 months 0.55 0.53
----------------------------------------------------------------------------
For 12 months + 1.20 1.08
----------------------------------------------------------------------------
Dividend Yield *
- --------------------------------------------------------------------------------
For 6 months 12.55% 11.45%
----------------------------------------------------------------------------
For 12 months 13.44 12.34
----------------------------------------------------------------------------
Weighted Average Maturity (years) 14.3 13.3
- --------------------------------------------------------------------------------
Weighted Average Effective Duration (years) 4.6 4.6
- --------------------------------------------------------------------------------
Weighted Average Quality ** BB BB+
- --------------------------------------------------------------------------------
* Dividends earned and reinvested for the periods indicated are
annualized and divided by the fund's net asset value per share at the
end of the period.
** Based on T. Rowe Price research.
+ Includes return-of-capital distributions of $0.10, $0.05, and $0.35
for Global Bond Fund, International Bond Fund, and Emerging Markets
Bond Fund, respectively.
================================================================================
<PAGE>
T. Rowe Price Foreign Bond Funds
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- ----------------------
These charts show the value of a hypothetical $10,000 investment in each
fund over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with 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.
GLOBAL BOND FUND
- ----------------
J.P. Morgan Global
Governmant Bond Global
Date Index (unhedged) Bond Fund
- ---- ------------------ ---------
12/31/90 10,000 10,000
12/91 11,545 11.131
12/92 12,071 16,493
12/93 13,551 12,775
12/94 13,724 12,384
12/95 16,375 14,360
12/96 17,096 15,595
12/97 17,335 15,846
12/98 19,990 17,737
12/99 18,974 16,550
INTERNATIONAL BOND FUND
- -----------------------
J.P. Morgan Non-U.S.
Dollar Governmant International
Date Bond Index Bond Fund
- ---- ------------------ -------------
12/89 10,000 10,000
12/90 11,561 11.605
12/91 13,400 13,664
12/92 13,613 13,992
12/93 15,591 16,790
12/94 16,359 16,481
12/95 19,814 19,827
12/96 20,858 21,241
12/97 20,071 20,568
12/98 23,740 23,658
12/99 22,275 21,799
<PAGE>
EMERGING MARKETS BOND FUND
- --------------------------
J.P. Morgan
Emerging Markets Emerging Markets
Date Bond Index Plus Bond Fund
- ---- ----------------- ----------------
12/30/94 10,000 10,000
12/95 12,677 12,581
12/96 17,660 17,207
12/97 19,959 20,103
12/98 17,095 15,461
12/99 21,535 19,013
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- ------------------------------------
This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Since Inception
Periods Ended 12/31/99 1 Year 5 Years 10 Years Inception Date
- ---------------------- ------ ------- -------- --------- ---------
Global Bond Fund -6.69% 5.97% - 5.76% 12/31/90
International Bond Fund -7.86 5.75 8.10% 7.86 9/10/86
Emerging Markets Bond Fund 22.97 13.71 - 13.71 12/30/94
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
T. Rowe Price Global Bond Fund
- --------------------------------------------------------------------------------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
Year
Ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 10.51 $ 9.90 $ 10.35 $ 10.26 $ 9.22
- --------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.41* 0.53* 0.54* 0.56* 0.59*
Net realized and
unrealized gain (loss) (1.10) 0.61 (0.39) 0.09 1.04
- --------------------------------------------------------------------------------
Total from
investment activities (0.69) 1.14 0.15 0.65 1.63
- --------------------------------------------------------------------------------
<PAGE>
Distributions
Net investment income (0.32) (0.53) (0.49) (0.56) (0.59)
Net realized gain (0.11) - (0.11) - -
Tax return of capital (0.10) - - - -
- --------------------------------------------------------------------------------
Total distributions (0.53) (0.53) (0.60) (0.56) (0.59)
- --------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 9.29 $ 10.51 $ 9.90 $ 10.35 $ 10.26
================================================================================
RATIOS/SUPPLEMENTAL=DATA========================================================
Total return** (6.69)%* 11.93%* 1.61%* 6.59%* 18.13%*
- --------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.00%* 1.00%* 1.20%* 1.20%* 1.20%*
- --------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 4.23%* 5.29%* 5.38%* 5.48%* 6.08%*
- --------------------------------------------------------------------------------
Portfolio turnover rate 123.1% 136.2% 153.2% 262.6%+ 290.7%
- --------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 32,336 $ 41,926 $ 44,069 $ 55,869 $ 28,207
- --------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on
an investment in the fund during each period, assuming reinvestment of
all distributions.
* Excludes expenses in excess of a 1.20% voluntary expense limitation in
effect through 12/31/97 and a 1.00% voluntary expense limitation in
effect through 12/31/00
+ Excludes the effect of the acquisition of the Short-Term Global Income
Fund's assets
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price International Bond Fund
- --------------------------------------------------------------------------------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
Year
Ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 10.46 $ 9.58 $ 10.46 $ 10.46 $ 9.34
- --------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.37 0.51 0.54 0.60 0.62
Net realized and
unrealized gain (loss) (1.18) 0.88 (0.87) 0.11 1.24
- --------------------------------------------------------------------------------
<PAGE>
Total from
investment activities (0.81) 1.39 (0.33) 0.71 1.86
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.33) (0.51) (0.46) (0.60) (0.62)
Net realized gain (0.11) - (0.09) (0.11) (0.12)
Tax return of capital (0.05) - - - -
- --------------------------------------------------------------------------------
Total distributions (0.49) (0.51) (0.55) (0.71) (0.74)
- --------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 9.16 $ 10.46 $ 9.58 $ 10.46 $ 10.46
================================================================================
RATIOS/SUPPLEMENTAL=DATA========================================================
Total return* (7.86)% 15.03% (3.17)% 7.13% 20.30%
- --------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.90% 0.88% 0.86% 0.87% 0.90%
- --------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 3.93% 5.19% 5.38% 5.86% 6.10%
- --------------------------------------------------------------------------------
Portfolio turnover rate 94.9% 128.9% 155.9% 234.0% 237.1%
- --------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 779 $ 926 $ 826 $ 969 $ 1,016
- --------------------------------------------------------------------------------
* 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.
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Emerging Markets Bond Fund
- --------------------------------------------------------------------------------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
Year 12/30/94
Ended Through
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 9.23 $ 13.71 $ 12.97 $ 10.67 $ 10.00
- --------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.97 1.31* 1.16* 1.00* 1.03*
Net realized and unrealized
gain (loss) 0.99 (4.29) 0.97++ 2.72 1.38
- --------------------------------------------------------------------------------
<PAGE>
Total from
investment activities 1.96 (2.98) 2.13 3.72 2.41
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.73) (1.31) (1.15) (1.01) (1.02)
Net realized gain - (0.19) (0.24) (0.41) (0.72)
Tax return of capital (0.35) - - - -
- --------------------------------------------------------------------------------
Total distributions (1.08) (1.50) (1.39) (1.42) (1.74)
- --------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 10.11 $ 9.23 $ 13.71 $ 12.97 $ 10.67
================================================================================
RATIOS/SUPPLEMENTAL=DATA========================================================
Total retur* 22.97% (23.09)%* 16.83%* 36.77%* 25.81%*
- --------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.25% 1.25%* 1.25%* 1.25%* 1.25%*
- --------------------------------------------------------------------------------
Ratio of net investment
income (loss) to
average net assets 10.56% 11.52%* 8.61%* 8.37%* 10.20%*
- --------------------------------------------------------------------------------
Portfolio turnover rate 54.0% 78.4% 87.6% 168.7% 273.5%
- --------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $173,078 $148,111 $113,419 $39,862 $9,989
- --------------------------------------------------------------------------------
* Total return reflects the rate that an investor would have earned on
an investment in the fund during each period, assuming reinvestment of
all distributions.
* Excludes expenses in excess of a 1.25% voluntary expense limitation in
effect through 12/31/00
++ The amount presented is calculated pursuant to a methodology
prescribed by the Securities and Exchange Commission for a share
outstanding throughout the period. This amount is inconsistent with
the fund's aggregate gains and losses because of the timing of sales
and redemptions of fund shares in relation to fluctuating market
values for the investment portfolio.
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Global Bond Fund
- --------------------------------------------------------------------------------
December 31, 1999
PORTFOLIO OF INVESTMENTS
- ------------------------
Par/Shares Value
In thousands
ARGENTINA 0.7%
Government Bonds 0.7%
Republic of Argentina
FRB, 6.813%, 3/31/05 USD 66 $ 60
- -------------------------------------------------------------------------
Par, FRN, 6.00%, 3/31/23 275 182
- -------------------------------------------------------------------------
Total Argentina (Cost $265) 242
AUSTRIA=1.3%=============================================================
Government Bonds 1.3%
Republic of Austria, 4.75%, 12/20/04 JPY 35,000 405
- -------------------------------------------------------------------------
Total Austria (Cost $379) 405
BRAZIL=0.7%==============================================================
Government Bonds 0.7%
Republic of Brazil (Class C)
8.00%, 4/15/14 USD 303 228
- -------------------------------------------------------------------------
Total Brazil (Cost $200) 228
BULGARIA=0.9%============================================================
Government Bonds 0.9%
National Republic of Bulgaria, FLIRB
STEP, 2.75%, 7/28/12 410 296
- -------------------------------------------------------------------------
Total Bulgaria (Cost $274) 296
CANADA=1.0%==============================================================
Government Bonds 1.0%
Province of Alberta, 8.00%, 3/1/00 CAD 450 313
- -------------------------------------------------------------------------
Total Canada (Cost $339) 313
- -------------------------------------------------------------------------
COLOMBIA=0.0%============================================================
Government Bonds 0.0%
Republic of Colombia, 9.75%, 4/23/09 USD 15 14
- -------------------------------------------------------------------------
Total Colombia (Cost $13) 14
- -------------------------------------------------------------------------
<PAGE>
CYPRUS=0.4%==============================================================
Government Bonds 0.4%
Republic of Cyprus, 5.375%, 7/28/08 EUR 150 $ 142
- -------------------------------------------------------------------------
Total Cyprus (Cost $158) 142
- -------------------------------------------------------------------------
DENMARK=4.6%=============================================================
Government Bonds 4.6%
Kingdom of Denmark
6.00%, 11/15/02 DKK 4,000 556
- -------------------------------------------------------------------------
8.00%, 3/15/06 6,000 918
- -------------------------------------------------------------------------
Total Denmark (Cost $1,566) 1,474
FRANCE=4.0%==============================================================
Government Bonds 3.1%
Bons du Tresor Annuel, 4.50%, 7/12/02 EUR 500 504
- -------------------------------------------------------------------------
Caisse d'Amort Dette Sociale, 6.50%, 3/11/02 USD 200 199
- -------------------------------------------------------------------------
Caisse Nationale des Autoroutes, 5.85%, 3/24/13 EUR 290 290
- -------------------------------------------------------------------------
993
- -------------------------------------------------------------------------
Corporate Bonds 0.9%
Reseau Ferre de France, 5.25%, 4/14/10 300 291
- -------------------------------------------------------------------------
291
- -------------------------------------------------------------------------
Total France (Cost $1,444) 1,284
GERMANY=5.3%=============================================================
Government Bonds 5.3%
Bundesrepublic
6.875%, 5/12/05 1,315 1,436
- -------------------------------------------------------------------------
7.50%, 11/11/04 259 289
- -------------------------------------------------------------------------
Total Germany (Cost $1,938) 1,725
GREECE=1.4%==============================================================
Government Bonds 0.8%
Republic of Greece, 6.50%, 1/11/14 GRD 90,000 272
- -------------------------------------------------------------------------
272
- -------------------------------------------------------------------------
Corporate Bonds 0.6%
Public Power, 4.50%, 3/12/09 EUR 200 $ 176
- -------------------------------------------------------------------------
176
- -------------------------------------------------------------------------
Total Greece (Cost $470) 448
<PAGE>
ITALY=2.3%===============================================================
Government Bonds 2.3%
Buoni del Tesoro Poliennali
7.25%, 11/1/26 373 427
- -------------------------------------------------------------------------
9.00%, 10/1/03 269 305
- -------------------------------------------------------------------------
Total Italy (Cost $851) 732
JAPAN=2.8%===============================================================
Government Bonds 2.8%
Government of Japan
0.90%, 12/22/08 JPY 46,000 417
- -------------------------------------------------------------------------
3.00%, 9/20/05 45,000 487
- -------------------------------------------------------------------------
Total Japan (Cost $817) 904
MEXICO=0.9%==============================================================
Government Bonds 0.9%
United Mexican States
9.875%, 1/15/07 USD 90 94
- -------------------------------------------------------------------------
11.50%, 5/15/26 175 209
- -------------------------------------------------------------------------
Total Mexico (Cost $278) 303
NETHERLANDS=5.2%=========================================================
Government Bonds 4.7%
Government of Netherlands
5.50%, 1/15/28 EUR 170 159
- -------------------------------------------------------------------------
5.75%, 1/15/04 1,326 1,379
- -------------------------------------------------------------------------
1,538
- -------------------------------------------------------------------------
Corporate Bonds 0.5%
Hermes Europe Railtel, 10.375%, 1/15/06 80 81
- -------------------------------------------------------------------------
United Pan-Europe Communications, 10.875%, 8/1/0 75 77
- -------------------------------------------------------------------------
158
- -------------------------------------------------------------------------
Total Netherlands (Cost $1,963) 1,696
POLAND=1.0%==============================================================
Government Bonds 1.0%
Republic of Poland
Par, STEP, 3.50%, 10/27/24 USD 400 $ 246
- -------------------------------------------------------------------------
PDI, STEP, 6.00%, 10/27/14 100 89
- -------------------------------------------------------------------------
Total Poland (Cost $363) 335
<PAGE>
RUSSIA=0.4%==============================================================
Government Bonds 0.4%
Government of Russia
Participation Agreement, Russian roubles and OF
0.00% - 25.00%, 12/15/01 - 1/21/04 RUB 1,463 17
- -------------------------------------------------------------------------
Russian Treasury Bill, Zero Coupon, 5/17/00 437 11
- -------------------------------------------------------------------------
Vnesheconombank
IAN, FRN, 6.906%, 12/15/15 * USD 220 40
- -------------------------------------------------------------------------
Principal Loans, FRN, 6.906%, 12/15/20 * 330 54
- -------------------------------------------------------------------------
Total Russia (Cost $379) 122
SOUTH=KOREA=1.2%=========================================================
Corporate Bonds 1.2%
Korea Development Bank
1.875%, 2/13/02 JPY 15,000 148
- -------------------------------------------------------------------------
7.125%, 4/22/04 USD 250 244
- -------------------------------------------------------------------------
Total South Korea (Cost $372) 392
SPAIN=2.0%===============================================================
Government Bonds 2.0%
Bonos del Estado
6.00%, 1/31/29 EUR 150 149
- -------------------------------------------------------------------------
6.15%, 1/31/13 486 505
- -------------------------------------------------------------------------
Total Spain (Cost $846) 654
- -------------------------------------------------------------------------
SUPRANATIONAL=5.6%=======================================================
Government Bonds 5.6%
Asian Development Bank, 3.125%, 6/29/05 JPY 25,000 271
- -------------------------------------------------------------------------
European Investment Bank
4.00%, 4/15/09 EUR 690 $ 616
- -------------------------------------------------------------------------
5.25%, 3/23/02 65,000 330
- -------------------------------------------------------------------------
Inter-American Development Bank, 1.90%, 7/8/09 JPY 60,000 602
- -------------------------------------------------------------------------
Total Supranational (Cost $1,801) 1,819
- -------------------------------------------------------------------------
SWEDEN=3.1%==============================================================
Government Bonds 3.1%
Kingdom of Sweden, 5.50%, 4/12/02 SEK 8,500 1,008
- -------------------------------------------------------------------------
Total Sweden (Cost $1,046) 1,008
- -------------------------------------------------------------------------
<PAGE>
TUNISIA=0.7%=============================================================
Government Bonds 0.7%
Central Bank of Tunisia, 4.95%, 9/27/11 JPY 20,000 210
- -------------------------------------------------------------------------
Total Tunisia (Cost $166) 210
- -------------------------------------------------------------------------
UNITED=KINGDOM=4.9%======================================================
Government Bonds 0.7%
United Kingdom Treasury, 6.50%, 12/7/03 GBP 142 232
- -------------------------------------------------------------------------
232
- -------------------------------------------------------------------------
Corporate Bonds 4.2%
Abbey National Treasury, 5.25%, 1/21/04 155 236
- -------------------------------------------------------------------------
Colt Telecom, 8.875%, 11/30/07 EUR 160 86
- -------------------------------------------------------------------------
Doncasters, 8.125%, 5/1/09 GBP 50 79
- -------------------------------------------------------------------------
Energis, 9.50%, 6/15/09 25 43
- -------------------------------------------------------------------------
LCR Finance, 4.75%, 12/31/10 380 550
- -------------------------------------------------------------------------
Lloyds Bank, 5.625%, 7/15/49 EUR 200 186
- -------------------------------------------------------------------------
Orange, 7.625%, 8/1/08 100 106
- -------------------------------------------------------------------------
Telewest Communications, STEP, 0%, 4/15/09 GBP 67 67
- -------------------------------------------------------------------------
1,353
- -------------------------------------------------------------------------
Total United Kingdom (Cost $1,704) 1,585
- -------------------------------------------------------------------------
UNITED=STATES=44.4%======================================================
Government Bonds 24.2%
Federal National Mortgage Assn., 6.25%, 11/15/02USD 350 346
- -------------------------------------------------------------------------
Tennessee Valley Authority, 6.375%, 9/18/06 EUR 400 216
- -------------------------------------------------------------------------
U.S. Treasury Bonds
5.25%, 11/15/28 USD 1,000 $ 824
- -------------------------------------------------------------------------
6.375%, 8/15/27 1,260 1,210
- -------------------------------------------------------------------------
7.125%, 2/15/23 810 843
- -------------------------------------------------------------------------
U.S. Treasury Inflation-Indexed, 3.875%, 1/15/09 359 347
- -------------------------------------------------------------------------
<PAGE>
U.S. Treasury Notes
4.25%, 11/15/03 750 696
- -------------------------------------------------------------------------
5.25%, 5/15/04 1,410 1,350
- -------------------------------------------------------------------------
6.00%, 8/15/00 2,000 2,001
- -------------------------------------------------------------------------
7,833
- -------------------------------------------------------------------------
Corporate Bonds 18.0%
3M, 5.00%, 10/15/01 EUR 500 259
- -------------------------------------------------------------------------
American Standard, 7.125%, 6/1/06 80 81
- -------------------------------------------------------------------------
Aramark Services, 6.75%, 8/1/04 USD 250 236
- -------------------------------------------------------------------------
Capital One Financial, 7.125%, 8/1/08 150 136
- -------------------------------------------------------------------------
Chancellor Media, 8.00%, 11/1/08 100 100
- -------------------------------------------------------------------------
Comcast Cable Communications, 6.20%, 11/15/08 400 362
- -------------------------------------------------------------------------
Dura Operating, 9.00%, 5/1/09 EUR 75 72
- -------------------------------------------------------------------------
Huntsman ICI Chemicals, 10.125%, 7/1/09 60 64
- -------------------------------------------------------------------------
KFW International Finance
1.00%, 12/20/04 JPY 137,000 1,345
- -------------------------------------------------------------------------
5.50%, 6/18/04 GBP 360 553
- -------------------------------------------------------------------------
Metromedia Fiber Network, 10.00%, 12/15/09 EUR 43 45
- -------------------------------------------------------------------------
Newell, 6.35%, 7/15/08 USD 500 457
- -------------------------------------------------------------------------
Norfolk Southern, 7.35%, 5/15/07 500 488
- -------------------------------------------------------------------------
NTL, STEP, 10.75%, 4/1/08 GBP 80 87
- -------------------------------------------------------------------------
Proctor & Gamble, 1.50%, 12/7/05 JPY 50,000 494
- -------------------------------------------------------------------------
R&B Falcon, 6.75%, 4/15/05 USD 500 445
- -------------------------------------------------------------------------
SunAmerica Institutional Funding
5.125%, 4/15/08 EUR 750 367
- -------------------------------------------------------------------------
5.25%, 5/20/09 1,500 218
- -------------------------------------------------------------------------
5,809
- -------------------------------------------------------------------------
<PAGE>
Money Market Funds 2.2%
Reserve Investment Fund, 6.16% # 696 696
- -------------------------------------------------------------------------
696
- -------------------------------------------------------------------------
Total United States (Cost $14,907) 14,338
- -------------------------------------------------------------------------
Total=Investments=in=Securities==========================================
94.8% of Net Assets (Cost $32,539) $ 30,669
Forward=Currency=Exchange=Contracts======================================
In thousands
Counter- Unrealized
party Settlement Receive Deliver Gain (Loss)
_______________ __________ _______________ _______________ ____________
Chase Manhattan 1/18/00 AUD 260 USD 165 $ 6
Chase Manhattan 1/18/00 EUR 570 SEK 4,895 (1)
Chase Manhattan 1/18/00 EUR 646 JPY 67,167 (8)
Chase Manhattan 1/18/00 JPY 330,670 USD 3,181 69
Chase Manhattan 1/26/00 USD 490 JPY 49,789 1
Chase Manhattan 2/8/00 CAD 2,110 USD 1,428 35
Net unrealized gain (loss) on open forward
currency exchange contracts 102
Other Assets Less Liabilities 1,565
NET ASSETS $ 32,336
# Seven-day yield
* Non-income producing
FLIRB Front loaded interest reduction bond
FRB Floating rate bond
FRN Floating rate note
IAN Interest arrears note
PDI Past due interest bond
STEP Stepped coupon note for which the interest rate
will adjust on specified future date(s)
CAD Canadian dollar
DKK Danish krone
EUR Euro
GBP British sterling
GRD Greek drachma
JPY Japanese yen
RUB Russian rouble
SEK Swedish krona
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE GLOBAL BOND FUND
- --------------------------------------------------------------------------------
December 31, 1999
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------
In thousands
ASSETS
Investments in securities, at value (cost $32,539) $ 30,669
Other assets 3,078
- ---------------------------------------------------------------------------
Total assets 33,747
LIABILITIES
Total liabilities 1,411
- ---------------------------------------------------------------------------
NET ASSETS $ 32,336
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (112)
Accumulated net realized gain/loss - net of distributions (898)
Net unrealized gain (loss) (1,814)
Paid-in-capital applicable to 3,481,973 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the corporation authorized 35,160
NET ASSETS $ 32,336
NET ASSET VALUE PER SHARE $ 9.29
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE INTERNATIONAL BOND FUND
- --------------------------------------------------------------------------------
December 31, 1999
PORTFOLIO OF INVESTMENTS
- ------------------------
Par/Shares Value
In thousands
ARGENTINA 0.5%
Government Bonds 0.5%
Republic of Argentina
FRB, 6.813%, 3/31/05 USD 1,540 $ 1,405
- -------------------------------------------------------------------------
Par, FRN, 6.00%, 3/31/23 3,250 2,149
- -------------------------------------------------------------------------
Total Argentina (Cost $3,703) 3,554
AUSTRALIA=1.5%===========================================================
Government Bonds 1.5%
Commonwealth of Australia, 8.75%, 8/15/08 AUD 9,000 6,592
- -------------------------------------------------------------------------
Queensland Treasury, 6.50%, 6/14/05 8,500 5,421
- -------------------------------------------------------------------------
Total Australia (Cost $12,241) 12,013
<PAGE>
AUSTRIA=4.7%=============================================================
Government Bonds 4.7%
Republic of Austria
4.50%, 9/28/05 JPY 600,000 6,985
- -------------------------------------------------------------------------
4.75%, 12/20/04 750,000 8,690
- -------------------------------------------------------------------------
5.00%, 1/15/08 EUR 21,061 20,610
- -------------------------------------------------------------------------
Total Austria (Cost $39,992) 36,285
BRAZIL=0.7%==============================================================
Government Bonds 0.7%
Republic of Brazil (Class C), 8.00%, 4/15/1 USD 6,733 5,067
- -------------------------------------------------------------------------
Total Brazil (Cost $4,431) 5,067
BULGARIA=0.9%============================================================
Government Bonds 0.9%
National Republic of Bulgaria
FLIRB, STEP, 2.75%, 7/28/12 6,630 4,790
- -------------------------------------------------------------------------
IAB, FRN, 6.50%, 7/28/11 3,000 2,374
- -------------------------------------------------------------------------
Total Bulgaria (Cost $6,281) 7,164
CANADA=1.1%==============================================================
Government Bonds 1.1%
Government of Canada, 9.00%, 6/1/25 CAD 8,900 8,199
- -------------------------------------------------------------------------
Total Canada (Cost $7,978) 8,199
COLOMBIA=0.0%============================================================
Government Bonds 0.0%
Republic of Colombia, 9.75%, 4/23/09 USD 165 $ 154
- -------------------------------------------------------------------------
Total Colombia (Cost $148) 154
CYPRUS=0.5%==============================================================
Government Bonds 0.5%
Republic of Cyprus, 5.375%, 7/28/08 EUR 4,000 3,778
- -------------------------------------------------------------------------
Total Cyprus (Cost $4,217) 3,778
DENMARK=6.0%=============================================================
Government Bonds 6.0%
Kingdom of Denmark
6.00%, 11/15/02 DKK 270,000 37,522
- -------------------------------------------------------------------------
8.00%, 3/15/06 57,800 8,847
- -------------------------------------------------------------------------
Total Denmark (Cost $49,834) 46,369
<PAGE>
FRANCE=4.3%==============================================================
Government Bonds 3.0%
Bons du Tresor Annuel, 4.50%, 7/12/02 EUR 17,137 17,276
- -------------------------------------------------------------------------
Caisse Nationale des Autoroutes,
5.85%, 3/24/13 6,067 6,087
- -------------------------------------------------------------------------
23,363
- -------------------------------------------------------------------------
Corporate Bonds 1.3%
Reseau Ferre de France, 5.25%, 4/14/10 10,000 9,686
- -------------------------------------------------------------------------
9,686
- -------------------------------------------------------------------------
Total France (Cost $38,298) 33,049
GERMANY=12.7%============================================================
Government Bonds 10.0%
Bundesrepublic
4.50%, 5/17/02 EUR 22,990 23,240
- -------------------------------------------------------------------------
5.25%, 1/4/08 18,000 18,029
- -------------------------------------------------------------------------
6.00%, 1/4/07 13,642 14,359
- -------------------------------------------------------------------------
6.875%, 5/12/05 19,897 21,730
- -------------------------------------------------------------------------
77,358
- -------------------------------------------------------------------------
Corporate Bonds 2.7%
Bank Nederlandse Gemeenten
5.25%, 10/1/01 14,300 $ 7,467
- -------------------------------------------------------------------------
6.25%, 8/10/00 6,000 3,132
- -------------------------------------------------------------------------
Hypothekenbank In Essen, 4.25%, 7/6/09 11,900 10,708
- -------------------------------------------------------------------------
21,307
- -------------------------------------------------------------------------
Total Germany (Cost $109,678) 98,665
- -------------------------------------------------------------------------
GREECE=2.3%==============================================================
Government Bonds 1.8%
Republic of Greece, 6.50%, 1/11/14 GRD 4,725,000 14,306
- -------------------------------------------------------------------------
14,306
- -------------------------------------------------------------------------
Corporate Bonds 0.5%
Public Power, 4.50%, 3/12/09 EUR 4,200 3,694
- -------------------------------------------------------------------------
3,694
- -------------------------------------------------------------------------
Total Greece (Cost $18,472) 18,000
<PAGE>
ITALY=4.9%===============================================================
Government Bonds 4.9%
Buoni del Tesoro Poliennali
7.25%, 11/1/26 EUR 6,780 7,757
- -------------------------------------------------------------------------
9.00%, 10/1/03 26,923 30,545
- -------------------------------------------------------------------------
Total Italy (Cost $46,335) 38,302
JAPAN=3.7%===============================================================
Government Bonds 3.7%
Government of Japan, 0.90%, 12/22/08 JPY 3,200,000 29,001
- -------------------------------------------------------------------------
Total Japan (Cost $24,264) 29,001
luxembourg=0.1%==========================================================
Corporate Bonds 0.1%
Carrier1, 13.25%, 2/15/09 EUR 780 837
- -------------------------------------------------------------------------
837
- -------------------------------------------------------------------------
Warrants 0.0%
Carrier1, 2/9/15 * 780 86
- -------------------------------------------------------------------------
86
- -------------------------------------------------------------------------
Total Luxembourg (Cost $879) 923
MEXICO=0.8%==============================================================
Government Bonds 0.8%
United Mexican States
11.50%, 5/15/26 USD 3,100 $ 3,708
- -------------------------------------------------------------------------
Par, 3.85%, 12/31/19
(with attached value recovery rights) JPY 200,000 1,801
- -------------------------------------------------------------------------
Par (Series W-A), 6.25%, 12/31/19
(with attached value recovery rights) USD 250 197
- -------------------------------------------------------------------------
Par (Series W-B), 6.25%, 12/31/19
(with attached value recovery rights) 500 394
- -------------------------------------------------------------------------
Total Mexico (Cost $5,363) 6,100
NETHERLANDS=6.1%=========================================================
Government Bonds 4.6%
Government of Netherlands, 5.75%, 1/15/04 EUR 34,630 36,008
- -------------------------------------------------------------------------
36,008
- ------------------------------------------------------------------------
Corporate Bonds 1.5%
Hermes Europe Railtel, 10.375%, 1/15/06 1,910 1,943
- -------------------------------------------------------------------------
<PAGE>
Tecnost International, 5.375%, 7/30/04 7,400 7,296
- -------------------------------------------------------------------------
United Pan-Europe Communications,
10.875%, 8/1/09 2,000 2,050
- -------------------------------------------------------------------------
11,289
- -------------------------------------------------------------------------
Total Netherlands (Cost $55,703) 47,297
POLAND=1.2%==============================================================
Government Bonds 1.2%
Republic of Poland, STEP
3.50%, 10/27/24 USD 10,000 6,162
- -------------------------------------------------------------------------
PDI, 6.00%, 10/27/14 3,575 3,173
- -------------------------------------------------------------------------
Total Poland (Cost $10,019) 9,335
RUSSIA=0.3%==============================================================
Government Bonds 0.3%
Government of Russia
Participation Agreement, Russian roubles aP
0.00% - 25.00%, 12/15/01 - 1/21/04 RUB 35,321 394
- -------------------------------------------------------------------------
Russian Treasury Bill, Zero Coupon, 5/17/0 10,582 268
- -------------------------------------------------------------------------
Vnesheconombank
IAN, FRN, 6.906%, 12/15/15 * USD 5,721 $ 1,030
- -------------------------------------------------------------------------
Principal Loans, FRN, 6.906%, 12/15/20 4,780 788
- -------------------------------------------------------------------------
Total Russia (Cost $7,396) 2,480
- -------------------------------------------------------------------------
SLOVENIA=0.3%============================================================
Government Bonds 0.3%
Republic of Slovenia, 5.375%, 5/27/05 EUR 2,200 2,194
- -------------------------------------------------------------------------
Total Slovenia (Cost $2,489) 2,194
- -------------------------------------------------------------------------
SOUTH=KOREA=1.4%=========================================================
Government Bonds 1.0%
Korea Development Bank
1.875%, 2/13/02 JPY 410,000 4,043
- -------------------------------------------------------------------------
2.56%, 6/26/01 400,000 3,982
- -------------------------------------------------------------------------
8,025
- -------------------------------------------------------------------------
<PAGE>
Corporate Bonds 0.4%
Korea Industrial Leasing, 2.20%, 8/7/02 330,000 3,230
- -------------------------------------------------------------------------
3,230
- -------------------------------------------------------------------------
Total South Korea (Cost $9,191) 11,255
- -------------------------------------------------------------------------
SPAIN=4.2%===============================================================
Government Bonds 4.2%
Bonos del Estado
6.00%, 1/31/29 EUR 7,513 7,460
- -------------------------------------------------------------------------
6.15%, 1/31/13 24,641 25,558
- -------------------------------------------------------------------------
Total Spain (Cost $42,814) 33,018
- -------------------------------------------------------------------------
SUPRANATIONAL=9.1%=======================================================
Government Bonds 9.1%
Asian Development Bank, 3.125%, 6/29/05 JPY 1,215,000 13,188
- -------------------------------------------------------------------------
European Investment Bank
2.125%, 9/20/07 500,000 5,109
- -------------------------------------------------------------------------
3.00%, 9/20/06 250,000 2,729
- -------------------------------------------------------------------------
4.00%, 4/15/09 EUR 6,200 5,532
- -------------------------------------------------------------------------
5.25%, 3/23/02 700,000 3,553
- -------------------------------------------------------------------------
Inter-American Development Bank
1.90%, 7/8/09 JPY 2,700,000 $ 27,100
- -------------------------------------------------------------------------
7.00%, 6/8/05 EUR 25,000 13,895
- -------------------------------------------------------------------------
Total Supranational (Cost $66,930) 71,106
- -------------------------------------------------------------------------
SWEDEN=2.7%==============================================================
Government Bonds 2.7%
Kingdom of Sweden,
5.50%, 4/12/02 SEK 110,000 13,043
- -------------------------------------------------------------------------
6.50%, 10/25/06 64,000 7,896
- -------------------------------------------------------------------------
Total Sweden (Cost $22,031) 20,939
- -------------------------------------------------------------------------
TUNISIA=0.5%=============================================================
Government Bonds 0.5%
Central Bank of Tunisia, 4.95%, 9/27/11 JPY 400,000 4,204
- -------------------------------------------------------------------------
Total Tunisia (Cost $3,322) 4,204
- -------------------------------------------------------------------------
<PAGE>
UNITED=KINGDOM=6.1%======================================================
Corporate Bonds 6.1%
Abbey National, 5.25%, 1/21/04 GBP 4,780 7,269
- -------------------------------------------------------------------------
Alliance & Leicester Building Society,
8.75%, 12/7/06 8,500 14,722
- -------------------------------------------------------------------------
Colt Telecom, 8.875%, 11/30/07 EUR 2,890 1,548
- -------------------------------------------------------------------------
Doncasters, 8.125%, 5/1/09 GBP 1,110 1,753
- -------------------------------------------------------------------------
Energis, 9.50%, 6/15/09 555 953
- -------------------------------------------------------------------------
Gallaher Group, 5.875%, 8/6/08 EUR 3,600 1,731
- -------------------------------------------------------------------------
Halifax Building Society, 8.75%, 7/10/06 GBP 4,000 6,986
- -------------------------------------------------------------------------
LCR Finance, 4.75%, 12/31/10 GBP 2,700 3,909
- -------------------------------------------------------------------------
Lloyds Bank, 5.625%, 7/15/49 EUR 3,900 3,640
- -------------------------------------------------------------------------
Orange, 7.625%, 8/1/08 2,000 2,115
- -------------------------------------------------------------------------
TDL Infomedia Group, 12.125%, 10/15/09 GBP 820 1,323
- -------------------------------------------------------------------------
Telewest Communications, STEP, 0%, 4/15/09 1,610 1,612
- -------------------------------------------------------------------------
Total United Kingdom (Cost $47,491) 47,561
- -------------------------------------------------------------------------
UNITED=STATES=20.9%======================================================
Government Bonds 4.8%
Federal National Mortgage Assn.
6.375%, 8/15/07 AUD 12,000 7,435
- -------------------------------------------------------------------------
6.875%, 6/7/02 GBP 12,900 20,858
- -------------------------------------------------------------------------
Tennessee Valley Authority, 6.375%, 9/18/06 EUR 17,000 9,165
- -------------------------------------------------------------------------
37,458
- -------------------------------------------------------------------------
Corporate Bonds 14.5%
3M, 5.00%, 10/15/01 8,350 4,325
- -------------------------------------------------------------------------
American Standard, 7.125%, 6/1/06 2,000 2,020
- -------------------------------------------------------------------------
Dura Operating, 9.00%, 5/1/09 2,000 1,904
- -------------------------------------------------------------------------
Huntsman ICI Chemicals, 10.125%, 7/1/09 1,600 1,704
- -------------------------------------------------------------------------
KFW International Finance
1.00%, 12/20/04 JPY 3,340,000 32,807
- -------------------------------------------------------------------------
5.50%, 6/18/04 GBP 19,780 30,404
- -------------------------------------------------------------------------
6.75%, 6/20/05 EUR 14,316 15,433
- -------------------------------------------------------------------------
<PAGE>
Metromedia Fiber Network, 10.00%, 12/15/09 1,047 1,097
- -------------------------------------------------------------------------
NTL, STEP, 10.75%, 4/1/08 GBP 1,930 2,104
- -------------------------------------------------------------------------
SunAmerica Institutional Funding
5.125%, 4/15/08 EUR 15,800 7,733
- -------------------------------------------------------------------------
5.25%, 5/20/09 32,600 4,736
- -------------------------------------------------------------------------
Toyota Motor Credit, 1.00%, 12/20/04 JPY 850,000 8,299
- -------------------------------------------------------------------------
112,566
- -------------------------------------------------------------------------
Money Market Funds 1.6%
Reserve Investment Fund, 6.16% # 12,817 12,817
- -------------------------------------------------------------------------
12,817
- -------------------------------------------------------------------------
Total United States (Cost $170,776) 162,841
- -------------------------------------------------------------------------
Total=Investments=in=Securities==========================================
97.5% of Net Assets (Cost $810,276) $ 758,853
Forward=Currency=Exchange=Contracts======================================
In thousands
Counter- Unrealized
party Settlement Receive Deliver Gain (Loss)
- --------------- ---------- ---------------- --------------- --------
Chase Manhattan 1/14/00 CAD 29,986 USD 20,288 $ 492
Chase Manhattan 1/14/00 EUR 40,349 USD 40,676 11
Chase Manhattan 1/14/00 USD 3,653 DKK 27,012 (6)
Chase Manhattan 1/18/00 JPY 426,489 DKK 30,464 59
Chase Manhattan 1/18/00 JPY 2,527,145 GBP 15,196 261
Chase Manhattan 1/18/00 JPY 590,140 SEK 48,772 55
Chase Manhattan 1/18/00 JPY 722,238 USD 7,039 51
Chase Manhattan 2/8/00 CAD 33,208 USD 22,468 558
Chase Manhattan 2/8/00 EUR 8,035 AUD 13,017 (433)
Net unrealized gain (loss) on open forward
currency exchange contracts 1,048
Other Assets Less Liabilities 18,771
NET ASSETS $ 778,672
# Seven-day yield
* Non-income producing
FLIRB Front loaded interest reduction bond
FRB Floating rate bond
FRN Floating rate note
IAB Interest arrears bond
IAN Interest arrears note
PDI Past due interest bond
STEP Stepped coupon note for which the interest rate will adjust on
specified future date(s)
<PAGE>
AUD Australian dollar
CAD Canadian dollar
DKK Danish krone
EUR Euro
GBP British sterling
GRD Greek drachma
JPY Japanese yen
RUB Russian rouble
SEK Swedish krona
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE INTERNATIONAL BOND FUND
- --------------------------------------------------------------------------------
December 31, 1999
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------
In thousands
ASSETS
Investments in securities, at value (cost $810,276) $ 758,853
Securities lending collateral 62,516
Other assets 22,969
- ------------------------------------------------------------------------------
Total assets 844,338
- ------------------------------------------------------------------------------
LIABILITIES
Obligation to return securities lending collateral 62,516
Other liabilities 3,150
- ------------------------------------------------------------------------------
Total liabilities 65,666
- ------------------------------------------------------------------------------
NET ASSETS $ 778,672
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (2,621)
Accumulated net realized gain/loss - net of distributions (13,720)
Net unrealized gain (loss) (51,050)
Paid-in-capital applicable to 85,011,184 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 846,063
NET ASSETS $ 778,672
NET ASSET VALUE PER SHARE $ 9.16
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE EMERGING MARKETS BOND FUND
- ----------------------------------------
December 31, 1999
PORTFOLIO OF INVESTMENTS
- ------------------------
Par/Shares Value
In thousands
ARGENTINA 12.4%
Government Bonds 11.5%
Republic of Argentina
11.375%, 1/30/17 USD 2,325 $ 2,317
- -------------------------------------------------------------------------------
11.75%, 4/7/09 1,800 1,814
- -------------------------------------------------------------------------------
BOCON PRE 4, FRN, 5.185%, 9/1/02 2,000 1,742
- -------------------------------------------------------------------------------
FRB, 6.813%, 3/31/05 8,536 7,789
- -------------------------------------------------------------------------------
Par, FRN, 6.00%, 3/31/23 9,350 6,183
- -------------------------------------------------------------------------------
19,845
- -------------------------------------------------------------------------------
Corporate Bonds 0.9%
CEI Citicorp, 11.25%, 2/14/07 ARS 1,000 833
- -------------------------------------------------------------------------------
CIA International Telecommunications, 10.375%, 8/1/04 1,000 830
- -------------------------------------------------------------------------------
1,663
- -------------------------------------------------------------------------------
Total Argentina (Cost $21,207) 21,508
- -------------------------------------------------------------------------------
BRAZIL=19.7%===================================================================
Government Bonds 19.7%
Republic of Brazil
10.125%, 5/15/27 USD 3,495 3,016
- -------------------------------------------------------------------------------
11.625%, 4/15/04 4,550 4,561
- -------------------------------------------------------------------------------
14.50%, 10/15/09 2,628 2,918
- -------------------------------------------------------------------------------
(Class C), 8.00%, 4/15/14 14,316 10,773
- -------------------------------------------------------------------------------
DCB, FRN, 7.00%, 4/15/12 4,500 3,364
- -------------------------------------------------------------------------------
Discount, FRN, 6.938%, 4/15/24 2,000 1,535
- -------------------------------------------------------------------------------
EI, FRN, 6.938%, 4/15/06 5,264 4,639
- -------------------------------------------------------------------------------
NMB, FRN, 7.00%, 4/15/09 1,600 1,304
- -------------------------------------------------------------------------------
Par, FRN, 5.75%, 4/15/24 3,000 1,943
- -------------------------------------------------------------------------------
Total Brazil (Cost $32,825) 34,053
- -------------------------------------------------------------------------------
<PAGE>
BULGARIA=9.2%==================================================================
Government Bonds 9.2%
National Republic of Bulgaria
Discount (Series A), FRN, 6.50%, 7/28/24 3,325 2,664
- -------------------------------------------------------------------------------
FLIRB, STEP, 2.75%, 7/28/12 8,520 6,156
- -------------------------------------------------------------------------------
IAB, FRN, 6.50%, 7/28/11 8,900 7,042
- -------------------------------------------------------------------------------
Total Bulgaria (Cost $14,417) 15,862
- -------------------------------------------------------------------------------
COLOMBIA=1.2%==================================================================
Government Bonds 1.2%
Republic of Colombia, 9.75%, 4/23/09 USD 2,270 $ 2,122
- -------------------------------------------------------------------------------
Total Colombia (Cost $2,036) 2,122
- -------------------------------------------------------------------------------
ECUADOR=1.6%===================================================================
Government Bonds 1.6%
Republic of Ecuador, Discount, FRN, 6.75%, 2/28/25 7,250 2,791
- -------------------------------------------------------------------------------
Total Ecuador (Cost $3,631) 2,791
- -------------------------------------------------------------------------------
GABON=1.7%=====================================================================
Government Bonds 1.7%
Republic of Gabon, Loan Participation
FRN, 6.688%, 1/4/04 * 6,022 3,011
- -------------------------------------------------------------------------------
Total Gabon (Cost $4,563) 3,011
- -------------------------------------------------------------------------------
INDONESIA=1.5%=================================================================
Corporate Bonds 1.1%
Indah Kiat, 11.875%, 6/15/02 2,000 1,780
- -------------------------------------------------------------------------------
1,780
- -------------------------------------------------------------------------------
Convertible Bonds 0.4%
APP Finance (VII) Mauritius, (144a), 3.50%, 4/30/03 1,000 737
- -------------------------------------------------------------------------------
737
- -------------------------------------------------------------------------------
Total Indonesia (Cost $2,519) 2,517
- -------------------------------------------------------------------------------
<PAGE>
IVORY=COAST=1.7%===============================================================
Government Bonds 1.7%
Republic of Ivory Coast
FLIRB, STEP, 2.00%, 3/31/18 EUR 33,595 980
- -------------------------------------------------------------------------------
PDI, STEP, 1.90%, 3/30/18 55,214 1,993
- -------------------------------------------------------------------------------
Total Ivory Coast (Cost $4,570) 2,973
- -------------------------------------------------------------------------------
MALAYSIA=0.5%==================================================================
Government Bonds 0.5%
Government of Malaysia, 8.75%, 6/1/09 USD 750 791
- -------------------------------------------------------------------------------
Total Malaysia (Cost $745) 791
- -------------------------------------------------------------------------------
MEXICO=13.4%===================================================================
Government Bonds 13.4%
United Mexican States
11.50%, 5/15/26 USD 9,724 $ 11,632
- -------------------------------------------------------------------------------
Discount, 6.943%, 12/31/19
(with attached value recovery rights) 1,000 939
- -------------------------------------------------------------------------------
Par (Series W-A), 6.25%, 12/31/19
(with attached value recovery rights) 6,750 5,320
- -------------------------------------------------------------------------------
Par (Series W-B), 6.25%, 12/31/19
(with attached value recovery rights) 6,750 5,320
- -------------------------------------------------------------------------------
Total Mexico (Cost $21,415) 23,211
- -------------------------------------------------------------------------------
MOROCCO=1.6%===================================================================
Government Bonds 1.6%
Kingdom of Morrocco Restructured Loan (Tranche A)
Loan Participation, FRN, 6.844%, 1/1/09 3,119 2,846
- -------------------------------------------------------------------------------
Total Morocco (Cost $2,531) 2,846
- -------------------------------------------------------------------------------
NIGERIA=4.7%===================================================================
Government Bonds 4.7%
Central Bank of Nigeria
Par (Series WW), 6.25%, 11/15/20
(with attached payment adjustment warrants) 6,250 3,672
- -------------------------------------------------------------------------------
Promissory Notes, 5.092%, 1/5/10 11,300 4,410
- -------------------------------------------------------------------------------
Total Nigeria (Cost $8,829) 8,082
- -------------------------------------------------------------------------------
<PAGE>
PANAMA=2.8%====================================================================
Government Bonds 2.8%
Republic of Panama, IRB, STEP, 4.25%, 7/17/14 6,250 4,906
- -------------------------------------------------------------------------------
Total Panama (Cost $4,981) 4,906
- -------------------------------------------------------------------------------
PERU=3.6%======================================================================
Government Bonds 3.6%
Republic of Peru, IRB (US Series), STEP, 3.75%, 3/7/17 10,145 6,303
- -------------------------------------------------------------------------------
Total Peru (Cost $5,403) 6,303
- -------------------------------------------------------------------------------
PHILIPPINES=1.1%===============================================================
Government Bonds 0.6%
Republic of Philippines, 8.875%, 4/15/08 USD 1,000 $ 980
- -------------------------------------------------------------------------------
980
- -------------------------------------------------------------------------------
Corporate Bonds 0.5%
Bayan Telecommunications, 144a, 13.50%, 7/15/06 1,000 885
- -------------------------------------------------------------------------------
885
- -------------------------------------------------------------------------------
Total Philippines (Cost $1,924) 1,865
- -------------------------------------------------------------------------------
POLAND=1.3%====================================================================
Government Bonds 1.3%
Republic of Poland, Par, STEP, 3.50%, 10/27/24 3,500 2,157
- -------------------------------------------------------------------------------
Total Poland (Cost $2,384) 2,157
- -------------------------------------------------------------------------------
RUSSIA=6.8%====================================================================
Government Bonds 6.2%
Government of Russia
Participation Agreement, Russian roubles
and OFZs, STEP
0.00% - 25.00%, 12/15/01 - 1/21/04 RUB 33,897 378
- -------------------------------------------------------------------------------
Russian Federation
10.00%, 6/26/07 USD 5,750 3,658
- -------------------------------------------------------------------------------
11.75%, 6/10/03 1,000 767
- -------------------------------------------------------------------------------
Russian Treasury Bill, Zero Coupon, 5/17/00 RUB 10,155 257
- -------------------------------------------------------------------------------
Vnesheconombank
IAN, FRN, 6.906%, 12/15/15 * USD 9,449 1,701
- -------------------------------------------------------------------------------
Principal Loans, FRN, 6.906%, 12/15/20 * 24,370 4,021
- -------------------------------------------------------------------------------
10,782
- -------------------------------------------------------------------------------
<PAGE>
Corporate Bonds 0.0%
Rossiyskiy Kredit Bank, 10.25%, 9/29/00 * 1,000 70
- -------------------------------------------------------------------------------
70
- -------------------------------------------------------------------------------
Convertible Bonds 0.6%
Lukinter Finance, 3.50%, 5/6/02 USD 1,000 950
- -------------------------------------------------------------------------------
950
- -------------------------------------------------------------------------------
Total Russia (Cost $14,126) 11,802
- -------------------------------------------------------------------------------
THAILAND=0.0%==================================================================
Warrants 0.0%
NSM Steel, 2/1/08 * USD 633 $ 1
- -------------------------------------------------------------------------------
1
- -------------------------------------------------------------------------------
Corporate Bonds 0.0%
NSM Steel, (144a), 12.25%, 2/1/08 * 1,000 10
- -------------------------------------------------------------------------------
10
- -------------------------------------------------------------------------------
Total Thailand (Cost $948) 11
- -------------------------------------------------------------------------------
TURKEY=2.1%====================================================================
Government Bonds 0.9%
Republic of Turkey, Treasury Bill,
Zero Coupon, 3/15/00 TRL7,000,000 1,487
- -------------------------------------------------------------------------------
1,487
- -------------------------------------------------------------------------------
Corporate Bonds 1.2%
Cellco Finance, 15.00%, 8/1/05 USD 2,000 2,160
- -------------------------------------------------------------------------------
2,160
- -------------------------------------------------------------------------------
Total Turkey (Cost $3,686) 3,647
- -------------------------------------------------------------------------------
VENEZUELA=5.6%=================================================================
Government Bonds 5.6%
Republic of Venezuela
DCB, FRN, 7.00%, 12/18/07 8,952 7,072
- -------------------------------------------------------------------------------
Discount, FRN, (Series X-B), 6.875%, 3/31/20 1,000 710
- -------------------------------------------------------------------------------
FLIRB (Series A), 6.875%, 3/31/07 714 564
- -------------------------------------------------------------------------------
Par (Series W-A), 6.75%, 3/31/20
(with attached oil-linked certificates) 1,950 1,330
- -------------------------------------------------------------------------------
Total Venezuela (Cost $8,980) 9,676
- -------------------------------------------------------------------------------
<PAGE>
UNITED=STATES=5.7%=============================================================
Government Bonds 0.4%
U.S. Treasury Bond, Principal Only, 2/15/19 2,500 683
- -------------------------------------------------------------------------------
683
- -------------------------------------------------------------------------------
Money Market Funds 5.3%
Reserve Investment Fund, 6.16% # 9,131 9,131
- -------------------------------------------------------------------------------
9,131
- -------------------------------------------------------------------------------
Total United States (Cost $9,833) 9,814
Total=Investments=in=Securities================================================
98.2% of Net Assets (Cost $171,553) $ 169,948
Other Assets Less Liabilities 3,130
NET ASSETS $ 173,078
# Seven-day yield
* Non-income producing
144a Security was purchased pursuant to Rule 144a under the Securities Act
of 1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at period-end amounts
to 0.9% of net assets.
DCB Debt conversion bond
EI Eligible interest bond
FLIRB Front loaded interest reduction bond
FRB Floating rate bond
FRN Floating rate note
IAB Interest arrears bond
IAN Interest arrears note
IRB Interest reduction bond
NMB New money bond
PDI Past due interest bond
STEP Stepped coupon note for which the interest rate will adjust on
specified future date(s)
ARS Argentinean peso
EUR Euro
RUB Russian rouble
TRL Turkish lira
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE EMERGING MARKETS BOND FUND
- ----------------------------------------
December 31, 1999
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------
In thousands
ASSETS
Investments in securities, at value (cost $171,553) $ 169,948
Securities lending collateral 11,321
Other assets 3,825
- ------------------------------------------------------------------------------
Total assets 185,094
LIABILITIES
Obligation to return securities lending collateral 11,321
Other liabilities 695
- ------------------------------------------------------------------------------
Total liabilities 12,016
NET ASSETS $ 173,078
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (1,528)
Accumulated net realized gain/loss - net of distributions (23,182)
Net unrealized gain (loss) (1,626)
Paid-in-capital applicable to 17,115,245 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares authorized 199,414
NET ASSETS $ 173,078
NET ASSET VALUE PER SHARE $ 10.11
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE FOREIGN BOND FUNDS
- --------------------------------
STATEMENT OF OPERATIONS
- ----------------------- In thousands
Emerging
Global Markets International
Bond Fund Bond Fund Bond Fund
Year
Ended
12/31/99 12/31/99 12/31/99
Investment Income (Loss)
Interest $ 1,892 $ 41,581 $ 18,676
Securities lending 6 378 192
- -----------------------------------------------------------------------------
Total income 1,898 41,959 18,868
- -----------------------------------------------------------------------------
Expenses
Custody and accounting 135 404 173
Shareholder servicing 107 1,396 411
Investment management 54 5,822 1,329
<PAGE>
Legal and audit 22 24 22
Registration 20 25 23
Prospectus and shareholder reports 14 112 29
Directors 6 6 6
Miscellaneous 5 6 3
- -----------------------------------------------------------------------------
Total expenses 363 7,795 1,996
- -----------------------------------------------------------------------------
Net investment income (loss) 1,535 34,164 16,872
- -----------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (1,407) (32,459) (19,727)
Foreign currency transactions (64) 3,629 127
- -----------------------------------------------------------------------------
Net realized gain (loss) (1,471) (28,830) (19,600)
- -----------------------------------------------------------------------------
Change in net unrealized gain or loss
Securities (2,637) (75,002) 36,135
Other assets and liabilities
denominated in foreign currencies (217) (5,567) 426
- -----------------------------------------------------------------------------
Change in net unrealized gain or loss (2,854) (80,569) 36,561
- -----------------------------------------------------------------------------
Net realized and unrealized gain (loss) (4,325) (109,399) 16,961
- -----------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ (2,790) $ (75,235) $ 33,833
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE GLOBAL BOND FUND
- ------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------
In thousands
Year
Ended
12/31/99 12/31/98
-------- --------
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 1,535 $ 2,213
Net realized gain (loss) (1,471) 1,260
Change in net unrealized gain or loss (2,854) 1,228
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (2,790) 4,701
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (loss) (1,219) (2,213)
Net realized gain (437) -
Tax return of capital (368) -
- -------------------------------------------------------------------------------
<PAGE>
Decrease in net assets from distributions (2,024) (2,213)
- -------------------------------------------------------------------------------
Capital share transactions *
Shares sold 5,173 6,146
Distributions reinvested 1,576 1,701
Shares redeemed (11,525) (12,478)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (4,776) (4,631)
Net Assets
Increase (decrease) during period (9,590) (2,143)
Beginning of period 41,926 44,069
- -------------------------------------------------------------------------------
End of period $ 32,336 $ 41,926
*Share information
Shares sold 539 609
Distributions reinvested 161 169
Shares redeemed (1,206) (1,243)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (506) (465)
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE INTERNATIONAL BOND FUND
- -------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------- In thousands
Year
Ended
12/31/99 12/31/98
-------- --------
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 34,164 $ 43,748
Net realized gain (loss) (28,830) 23,657
Change in net unrealized gain or loss (80,569) 52,216
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (75,235) 119,621
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (31,573) (43,748)
Net realized gain (9,113) -
Tax return of capital (4,316) -
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (45,002) (43,748)
- -------------------------------------------------------------------------------
Capital share transactions *
Shares sold 200,275 242,652
Distributions reinvested 41,591 38,637
Shares redeemed (269,428) (256,522)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (27,562) 24,767
- -------------------------------------------------------------------------------
<PAGE>
Net Assets
Increase (decrease) during period (147,799) 100,640
Beginning of period 926,471 825,831
- -------------------------------------------------------------------------------
End of period $ 778,672 $ 926,471
*Share information
Shares sold 20,529 24,641
Distributions reinvested 4,306 3,943
Shares redeemed (28,365) (26,213)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (3,530) 2,371
The accompanying notes are an integral part of these financial statements.
===============================================================================
T. ROWE PRICE EMERGING MARKETS BOND FUND
- ----------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------- In thousand
Year
Ended
12/31/99 12/31/98
-------- --------
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 16,872 $ 15,034
Net realized gain (loss) (19,600) (9,925)
Change in net unrealized gain or loss 36,561 (39,787)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 33,833 (34,678)
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (12,647) (15,034)
Net realized gain - (1,606)
Tax return of capital (6,021) -
- -------------------------------------------------------------------------------
Decrease in net assets from distributions (18,668) (16,640)
- -------------------------------------------------------------------------------
Capital share transactions *
Shares sold 37,157 130,192
Distributions reinvested 17,017 15,078
Shares redeemed (44,372) (59,260)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 9,802 86,010
- -------------------------------------------------------------------------------
<PAGE>
Net Assets
Increase (decrease) during period 24,967 34,692
Beginning of period 148,111 113,419
- -------------------------------------------------------------------------------
End of period $ 173,078 $ 148,111
*Share information
Shares sold 3,989 11,727
Distributions reinvested 1,827 1,389
Shares redeemed (4,756) (5,335)
Increase (decrease) in shares outstanding 1,060 7,781
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE FOREIGN BOND FUNDS
- --------------------------------
December 31, 1999
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
- ----------------------------------------
T. Rowe Price International Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The Global Bond Fund (the Global
Fund), the International Bond Fund (the International Fund), and the Emerging
Markets Bond Fund (the Emerging Markets Fund), nondiversified, open-end
management investment companies, are three of the portfolios established by the
corporation and commenced operations on December 31, 1990, September 10, 1986,
and December 30, 1994, respectively.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
VALUATION Debt securities are generally traded in the over-the-counter
market and are valued at a price deemed best to reflect fair value as quoted by
dealers who make markets in these securities or by an independent pricing
service.
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 each fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of that
fund, as authorized by the Board of Directors.
<PAGE>
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 lo sses is reflected as a component of such gains and losses.
PREMIUMS AND DISCOUNTS Premiums and discounts on debt securities are
amortized for both financial reporting and tax purposes.
OTHER Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Distributions to shareholders are
recorded by each fund on the ex-dividend date. Income and capital gain
distributions are determined in accordance with federal income tax regulations
and may differ from those determined in accordance with generally accepted
accounting principles. Credits earned on daily uninvested cash balances at the
custodian are used to reduce each fund's custody charges. Unrealized gains and
losses on forward currency exchange contracts are included in Other as sets and
Other liabilities, respectively, and in Change in net unrealized gain or loss in
the accompanying financial statements.
NOTE 2 - INVESTMENT TRANSACTIONS
- --------------------------------
Consistent with their investment objectives, the funds engage in the
following practices to manage exposure to certain risks or enhance performance.
The investment objective, policies, program, and risk factors of each fund are
described more fully in each fund's prospectus and Statement of Additional
Information.
EMERGING MARKETS At December 31, 1999, each fund held investments in
securities of companies located in emerging markets or issued by governments of
emerging market countries. Future economic or political developments could
adversely affect the liquidity or value, or both, of such securities.
NONINVESTMENT-GRADE DEBT SECURITIES At December 31, 1999, each fund held
investments in noninvestment-grade debt securities, commonly referred to as
"high-yield" or "junk" bonds. A real or perceived economic downturn or higher
interest rates could adversely affect the liquidity or value, or both, of such
securities because such events could lessen the ability of issuers to make
principal and interest payments.
FORWARD CURRENCY EXCHANGE CONTRACTS At December 31, 1999, the Global and
International Funds were a party to forward currency exchange contracts under
which they are obligated to exchange currencies at specified future dates and
exchange rates. Risks arise from the possible inability of counterparties to
meet the terms of their agreements and from movements in currency values.
<PAGE>
SECURITIES LENDING Each fund lends its securities to approved brokers to
earn additional income and receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a money
market pooled account by the fund's lending agent. Collateral is maintained over
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 December 31, 1999, the value of
loaned securities and aggregate collateral in the securities lending collateral
pool were as follows:
*******************************************************************************
Emerging
Global Markets International
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
Loaned securities $ 182,000 $ 56,839,000 $ 10,928,000
Collateral 236,000 62,516,000 11,321,000
*******************************************************************************
OTHER Purchases and sales of portfolio securities, other than short-term
securities, for the year ended December 31, 1999, were as follows:
*******************************************************************************
Emerging
Global Markets International
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
U.S. government securities
Purchases $ 8,897,000 $ - $ 5,096,000
Sales 13,556,000 - 4,223,000
Other securities
Purchases 33,747,000 783,501,000 78,059,000
Sales 35,177,000 792,143,000 83,308,000
*******************************************************************************
NOTE 3 - FEDERAL INCOME TAXES
- -----------------------------
No provision for federal income taxes is required since each fund intends
to continue to qualify as a regulated investment company and distribute all of
its taxable income. As of December 31, 1999, the Global Fund has capital loss
carryforwards for federal income tax purposes of $384,000, all of which expires
in 2007. The International Fund has capital loss carryforwards for federal
income tax purposes of $5,681,000, all of which expires in 2007. The Emerging
Markets Fund has capital loss carryforwards for federal income tax purposes of
$22,163,000, of which $6,492,000 expires in 2006 and $15,671,000 expires in
2007. Each fund intends to retain gains realized in future periods that may be
offset by available capital loss carryforwards.
<PAGE>
In order for each fund's capital accounts and distributions to shareholders
to reflect the tax character of certain transactions, the following
reclassifications were made during the year ended December 31, 1999. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
*******************************************************************************
Emerging
Global Markets International
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
Undistributed net investment income $ (428,000) $(5,212,000) $ (5,947,000)
Undistributed net realized gain 428,000 20,034,000 5,947,000
Paid-in-capital - (14,822,000) -
*******************************************************************************
At December 31, 1999, the costs of investments for the Global,
International, and Emerging Markets Funds for federal income tax purposes was
substantially the same as for financial reporting and totaled $32,539,000,
$810,276,000, and $171,553,000, respectively. Net unrealized gain (loss) on
investments was as follows:
*******************************************************************************
Emerging
Global Markets International
Bond Fund Bond Fund Bond Fund
--------- --------- ---------
Appreciated investments $ 445,000 $ 22,204,000 $ 11,107,000
Depreciated investments (2,315,000) (73,627,000) (12,712,000)
Net unrealized gain (loss) $ (1,870,000)$(51,423,000) $ (1,605,000)
*******************************************************************************
NOTE 4 - RELATED PARTY TRANSACTIONS
- -----------------------------------
Each 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. The investment
management agreement between each fund and the manager provides for an annual
investment management fee, of which $6,000, $451,000, and $137,000 were payable
at December 31, 1999, by the Global, International, and Emerging Markets Funds,
respectively. The fee is computed daily and paid monthly, and consists of an
individual fund fee equal to 0.35% of average daily net assets for the Global
Fund, 0.35% of average daily net assets for the International Fund, and 0.45% of
average daily net assets for the Emerging Markets Fund, and a group fee. The
group fee is based on the combined assets of certain mutual funds sponsored by
the manager or Price Associates (the group). The group fee rate ranges from
0.48% for the first $1 billion of assets to 0.295% for assets in excess of $120
billion. At December 31, 1999, and for the year then ended, the effective annual
group fee rate was 0.32%. Each fund pays a pro-rata share of the group fee based
on the ratio of its net assets to those of the group.
<PAGE>
Under the terms of the investment management agreement, the manager is
required to bear any expenses through December 31, 2000, for the Global and
Emerging Markets Funds, which would cause each fund's ratio of total expenses to
average net assets to exceed 1.00% and 1.25%, respectively. Thereafter through
December 31, 2002, the Global and Emerging Markets Funds are required to
reimburse the manager for these expenses, provided that average net assets have
grown or expenses have declined sufficiently to allow reimbursement without
causing each fund's ratio of total expenses to average net assets to exceed
1.00% and 1.25%, respectively. Pursuant to the Global Fund's agreement, $190,000
of management fees were not accrued by the Global Fund for the year ended
December 31, 1999; an additional $248,000 of unaccrued management fees from
prior years remains subject to reimbursement through December 31, 2000. Pursuant
to the Emerging Markets Fund's agreement, $100,000 of unaccrued fees were repaid
during the year ended December 31, 1999, and $92,000 of unaccrued management
fees from prior years remains subject to reimbursement through December 31,
2000.
In addition, each fund has entered into agreements with Price Associates
and two wholly owned subsidiaries of Price Associates, pursuant to which each
fund receives certain other services. Price Associates computes the daily share
price and maintains the financial records of each fund. T. Rowe Price Services,
Inc. is each fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the funds. T. Rowe Price Retirement
Plan Services, Inc. provides subaccounting and recordkeeping services for
certain retirement accounts invested in each fund. The Global, International,
and Emerging Markets Funds incurred expenses pursuant to these related party
agreements totaling approximately $196,000, $689,000, and $257,000,
respectively, for the year ended December 31, 1999, of which $22,000, $94,000,
and $26,000, respectively, were payable at period-end.
Additionally, the International and Emerging Markets Funds are two of
several T. Rowe Price-sponsored mutual funds (underlying funds) in which the T.
Rowe Price Spectrum Funds (Spectrum) may invest. Spectrum does not invest in the
underlying funds for the purpose of exercising management or control. Expenses
associated with the operation of Spectrum are borne by each underlying fund to
the extent of estimated savings to it and in proportion to the average daily
value of its shares owned by Spectrum, pursuant to special servicing agreements
between and among Spectrum, the underlying funds, T. Rowe Price, and, in the
case of T. Rowe Price Spectrum International, Rowe Price-Fleming International.
Spectrum Income Fund held approximately 40.3% of the outstanding shares of the
International Fund and 56.1% of the outstanding shares of the Emerging Markets
Fund at December 31, 1999. Spectrum International Fund held approximately 2.3%
of the outstanding shares of the Emerging Markets Fund at December 31, 1999. For
the year then ended, the International Fund was allocated $716,000 of Spectrum
expenses, $48,000 of which was payable at period-end, and the Emerging Markets
Fund was allocated $227,000 of Spectrum expenses, $20,000 of which was payable
at period-end.
<PAGE>
The funds may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the Global, International, and the Emerging Markets Funds for
the year ended December 31, 1999, totaled $51,000, $1,138,000 and $85,000,
respectively, and are reflected as interest income in the accompanying Statement
of Operations.
================================================================================
T. ROWE PRICE FOREIGN BOND FUNDS
- --------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- ---------------------------------
TO THE BOARD OF DIRECTORS OF T. ROWE PRICE INTERNATIONAL FUNDS, INC. AND
SHAREHOLDERS OF GLOBAL BOND FUND, INTERNATIONAL BOND FUND, AND
EMERGING MARKETS BOND FUND
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Global Bond Fund,
International Bond Fund, and Emerging Markets Bond Fund (comprising T. Rowe
Price International Fund s, Inc., hereafter referred to as the "Funds") at
December 31, 1999, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for each of the fiscal
periods presented, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securitie s at December 31, 1999 by
correspondence with the custodian and the broker, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 20, 2000
================================================================================
<PAGE>
T. ROWE PRICE FOREIGN BOND FUNDS
- --------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 12/31/99
- -----------------------------------------------------------
We are providing this information as required by the Internal Revenue Code.
The amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The Global Bond and International Bond Funds' distributions to shareholders
included $437,000 and $9,113,000, respectively, from long-term capital gains
subject to the 20% rate gains category.
================================================================================
T. ROWE PRICE SHAREHOLDER SERVICES
- ----------------------------------
INVESTMENT SERVICES AND INFORMATION
- -----------------------------------
KNOWLEDGEABLE SERVICE REPRESENTATIVES
---------------------------------------
BY PHONE 1-800-225-5132 Available Monday through Friday from 8 a.m. to 10
p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
IN PERSON Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
----------------
CHECKING Available on most fixed income funds ($500 minimum).
AUTOMATIC INVESTING From your bank account or paycheck.
AUTOMATIC WITHDRAWAL Scheduled, automatic redemptions.
DISTRIBUTION OPTIONS Reinvest all, some, or none of your distributions.
AUTOMATED 24-HOUR SERVICES Including Tele*Access [RegistrationMark] and the
T. Rowe Price Web site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
-------------------
INDIVIDUAL INVESTMENTS Stocks, bonds, options, precious metals, and other
securities at a savings -over full-service commission rates. **
INVESTMENT INFORMATION
----------------------
COMBINED STATEMENT Overview of all your accounts with T. Rowe Price.
<PAGE>
SHAREHOLDER REPORTS Fund managers' reviews of their strategies and results.
T. ROWE PRICE REPORT Quarterly investment newsletter discussing markets and
financial strategies.
PERFORMANCE UPDATE Quarterly review of all T. Rowe Price fund results.
INSIGHTS Educational reports on investment strategies and financial
markets.
INVESTMENT GUIDES Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a September 1999 survey for representative-assisted
stock trades. Services vary by firm, and commissions may vary
depending on size of order.
================================================================================
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
<PAGE>
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. C15-050 12/31/99
