<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Annual Report
New Asia Fund
--------------------------------------------------------------------------------
October 31, 2000
================================================================================
REPORT HIGHLIGHTS
-----------------
NEW ASIA FUND
-------------
* Asian markets fell sharply during the past six months on concern about
a recession and slowing technology exports.
* The New Asia Fund's six-month loss was comparable to its benchmarks,
but its 12-month loss of just 0.68% was far superior to double-digit
declines in both the MSCI regional index and the Lipper peer group
average.
* We trimmed export-oriented technology companies, particularly in
Taiwan and South Korea, and added to holdings in Hong Kong, China, and
India.
* Valuations have reached historic lows, which, combined with the
likelihood of further corporate reforms, offers an excellent
opportunity for new investment.
================================================================================
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
-------------------
In the Chinese calendar, the year 2000 is the Year of the Dragon -- a year
traditionally characterized by upheaval. The performance of the Asian stock
markets this year has been very much in keeping with this prophecy. After
tremendous gains in late 1999 and early 2000, the Asian markets succumbed to the
steep decline in the tech-heavy Nasdaq Composite in the U.S. The New Asia Fund
fell sharply during the past six months and ended its fiscal year slightly in
the red.
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
New Asia Fund -23.03% -0.68%
MSCI All Country Far East Free
Ex-Japan Index -25.28 -21.38
Lipper Pacific Ex-Japan
Funds Average -22.35 -11.65
<PAGE>
Asian stocks and your fund declined significantly during the six months
ended October 31, as shown in the table, and fund performance was comparable to
that of our benchmarks. The MSCI All Country Far East Free Ex-Japan Index is an
unmanaged benchmark for Asian stocks from Korea to India. The Lipper Pacific
Ex-Japan Funds Average is a gauge of the performance of similar funds maintained
by the widely recognized mutual fund ranking firm Lipper Inc. Your fund's heavy
exposure to India and to the technology and wireless communications industries
aided results over the past 12 months but detracted in the more recent period.
Our emphasis on the relatively strong Hong Kong market also boosted performance.
With a slowing U.S. economy spelling reduced export growth for Asia, the
markets began pricing in the possibility of recession, particularly in those
nations badly hit by the Asian financial crisis. This is because much of the
economic recovery that we have seen in Asia over the past few years has been a
direct result of strong export growth, particularly in the electronics sector,
rather than broad-based economic and corporate restructuring that is still badly
needed. The brunt of the stock price declines have, therefore, been borne by the
electronics and other technology-related sectors. Telecommunications companies
across the region have also suffered severe declines in line with the weakness
in global telecom stocks, even though the fundamentals for this sector are quite
different in Asia.
PORTFOLIO REVIEW
----------------
MARKET PERFORMANCE
------------------
(In U.S. Dollar Terms)
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
China Free -9.07% -27.90%
Hong Kong -11.85 -1.28
India -26.00 -10.83
Malaysia -17.35 2.60
Philippines -34.76 -49.41
Singapore -12.63 -12.98
Korea -35.13 -33.75
Taiwan -36.59 -26.96
Thailand -42.00 -42.66
Source: RIMES Online, using MSCI indices.
We continued to focus on the best and most competitive companies in Asia --
businesses with solid franchises such as strong intellectual property, a
defensible niche, or clear market dominance.
<PAGE>
During the past six months, the fund's exposure was significantly reduced
in TAIWAN (to 12% from 22%) and SOUTH KOREA (to 12% from 20%). These changes
were due both to our decision to trim holdings in electronic components
companies, which are mainly located in Taiwan and Korea, and also to the sharp
decline in those markets. As shown in the table, Taiwan and Korea were among the
worst-performing markets in Asia during the past six and 12 months. Most
notably, we trimmed Korea's SAMSUNG ELECTRONICS, one of the world's largest
producers of DRAM chips. Although we still believe that the secular trend for
increased use of chips in consumer products remains intact, a shorter-term
cyclical slowdown in growth means lower prices and profits.
We added to our positions in HONG KONG (to 34% from 27%), CHINA (to 3% from
1%), and SINGAPORE (to 8% from 4%). Several years after the Asian crisis,
companies in Hong Kong and Singapore, having cut out corporate fat, have emerged
much leaner and more focused on competing in the global economy. With tremendous
growth potential for wireless communications in China, we initiated positions in
CHINA UNICOM, the country's second-largest mobile phone operator. The fund also
purchased PETROCHINA and CHINA PETROLEUM & CHEMICAL, two energy giants
undergoing major restructuring to release more value from their vast operations.
The Singapore government's efforts to push shareholder-friendly reforms at
companies largely government-owned encouraged us about prospects there. As a
result, we increased our stakes in SINGAPORE TELECOM, DBS GROUP, and SINGAPORE
PRESS HOLDINGS.
Geographic Diversification pie chart shown here. Hong Kong 34%, India 20%,
South Korea 12%, Taiwan 12%, Other and Reserves 9%, Singapore 8%, China 3%
and United Kingdom * 2%. Based on net assets as of 10/31/00. * HSBC
Holdings, a global banking conglomerate formerly based in Hong Kong,
has moved its domicile to the U.K.
INDIA is now our second-largest country exposure, and our holdings there
have risen to 20% from 18% six months ago. We reduced our stake in ITC, the
dominant domestic tobacco company, into strength as its volume growth improved
and its market value reached a significant premium to other international
tobacco companies. MAHANGAR TELECOM, the state-owned telecom provider, was also
eliminated, and we greatly reduced our exposure to ZEE TELEFILMS, India's
largest private media company. Both companies are experiencing rising
competition, which is squeezing profit margins. We added to HDFC BANK and ICICI,
as we are generally very positive on investor-owned financial institutions in
India. We also took a position in RELIANCE INDUSTRIES, which is building India's
first privately owned broadband network in a telecommunications market that is
severely underserved.
The fund is focused on:
* domestic infrastructure (Reliance Industries and KOREA
TELECOM);
* wireless telecommunications (HUTCHISON WHAMPOA of Hong Kong,
SOUTH KOREA TELECOM, CHINA MOBILE, China Unicom, and TOTAL
ACCESS COMMUNICATIONS OF THAILAND);
* trade and finance (HSBC Holdings, domiciled in the U.K.,
ICICI, DBS Group, and HDFC Bank);
* property development (CHEUNG KONG HOLDINGS, GREAT EAGLE
HOLDINGS, and HENDERSON LAND DEVELOPMENT, all of Hong Kong);
* and retail and consumer products (BRITANNIA INDUSTRIES and
HINDUSTAN LEVER, both of India, and PRESIDENT CHAIN STORE of
Taiwan).
<PAGE>
However, we do continue to own globally competitive exporters such as
TAIWAN SEMICONDUCTOR MANUFACTURING in the technology area.
We continue to shy away from investing in some of Asia's former economic
superstars, which are becoming quite insular markets, dominated by local retail
activity. We would place Indonesia, the Philippines, and Malaysia in this
category. In these countries, we are still uncomfortable with political
transitions and the general level of political stability and how this impacts
the ability of the economies to move ahead with reforms and liberalization. It
concerns us that major multinational foreign investors as well as local
investors in these economies seem to be taking a wait and see attitude rather
than committing to expand their existing facilities.
OUTLOOK
-------
INDUSTRY DIVERSIFICATION
------------------------ Percent of Net Assets
4/30/00 10/31/00
------- --------
Finance 21.3% 29.9%
Services 28.2 27.4
Capital Equipment 27.5 13.6
Multi-industry 7.7 8.2
Consumer Goods 7.4 8.0
Materials - 3.5
Energy 1.7 2.9
All Other 1.1 -
Reserves 5.1 6.5
Total 100.0% 100.0%
We are generally more optimistic about the bigger emerging economies in
Asia, and in particular China and India. In both countries, the role of the
private sector and of entrepreneurs in the economy is expanding, particularly in
areas like telecommunications and services. The private sector is far more
dynamic than the state-owned companies that have dominated these economies so
far, and we expect that there will be more private sector com-panies coming to
the market next year, which will broaden the number of companies and industries
that we can invest in.
In Korea and Taiwan, we will be watching with great interest how well local
regulators and companies use the opportunity presented by this economic downturn
to restructure their troubled banking systems. This requires a lot of political
will because the adjustment will necessarily involve some bankruptcies of high
profile business groups and higher unemployment. There have been some positive
early signs in Korea -- for instance, the huge Daewoo Motors company was finally
declared bankrupt, which increases the likelihood that its assets will be
liquidated at a much more realistic valuation.
<PAGE>
With markets essentially reflecting the possibility of a recession in Asia,
valuations have dropped to historic lows, as they did during the Asian crisis.
Although the export sector is likely to slow due to decelerating economies in
the U.S. and Europe, we believe that inter-regional trade and consumption
growth, driven by emerging Asia's two giant economies (China and India), will
provide support to the region's economies. We also believe that slower growth
will present another opportunity to push real corporate reforms. Asian companies
failed to seize a similar chance immediately after the crisis of two years ago.
For this reason, we believe that the present market weakness offers a golden
opportunity to invest in Asia not seen since 1997. Our cash position is now
minimal, and the fund is fully invested as we think Asian markets are close to a
bottom.
Respectfully submitted,
/s/
John R. Ford
President, T. Rowe Price International Funds, Inc.
November 21, 2000
================================================================================
T. Rowe Price New Asia Fund
---------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
10/31/00
--------------------------------------------------------------------------------
Cheung Kong Holdings, Hong Kong 8.7%
--------------------------------------------------------------------------------
Hutchison Whampoa, Hong Kong 7.7
--------------------------------------------------------------------------------
China Mobile, Hong Kong 4.8
--------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing, Taiwan 3.8
--------------------------------------------------------------------------------
Reliance Industries, India 3.0
--------------------------------------------------------------------------------
Korea Telecom, South Korea 3.0
--------------------------------------------------------------------------------
South Korea Telecom, South Korea 3.0
--------------------------------------------------------------------------------
Samsung Electronics, South Korea 2.9
--------------------------------------------------------------------------------
<PAGE>
DBS Group Holdings, Singapore 2.9
--------------------------------------------------------------------------------
ICICI Limited, India 2.7
--------------------------------------------------------------------------------
Global Tele-Systems, India 2.6
--------------------------------------------------------------------------------
Housing Development Finance, India 2.4
--------------------------------------------------------------------------------
United Microelectronics, Taiwan 2.1
--------------------------------------------------------------------------------
HSBC Holdings, United Kingdom 2.1
--------------------------------------------------------------------------------
Singapore Telecommunications, Singapore 1.7
--------------------------------------------------------------------------------
Dao Heng Bank Group, Hong Kong 1.7
--------------------------------------------------------------------------------
Hon Hai Precision Industry, Taiwan 1.7
--------------------------------------------------------------------------------
Parkway Holdings, Singapore 1.6
--------------------------------------------------------------------------------
China Unicom, Hong Kong 1.5
--------------------------------------------------------------------------------
Ranbaxy Laboratories, India 1.4
--------------------------------------------------------------------------------
Singapore Press, Singapore 1.4
--------------------------------------------------------------------------------
HDFC Bank, India 1.3
--------------------------------------------------------------------------------
Housing & Commercial Bank, South Korea 1.2
--------------------------------------------------------------------------------
Pacific Century CyberWorks, Hong Kong 1.2
--------------------------------------------------------------------------------
President Chain Store, Taiwan 1.2
--------------------------------------------------------------------------------
Total 67.6%
Note: Table excludes reserves.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
---------------------------
PERFORMANCE COMPARISON
----------------------
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
MSCI AC Far East Lipper Pacific Ex-Japan
Free Ex-Japan Index Funds Average New Asia Fund
------------------- ------------- -------------
10/90 10000 10000 10000
10/91 12218 11445 11372
10/92 17236 14461 13465
10/93 26557 21305 20422
10/94 30664 23296 21261
10/95 28353 22447 19199
10/96 31156 24513 20654
10/97 20379 17417 14332
10/98 15681 14326 12043
10/99 23844 20599 17912
10/00 18746 22008 17791
AVERAGE ANNUAL COMPOUND TOTAL RETURN
------------------------------------
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Periods Ended 10/31/00 1 Year 3 Years 5 Years 10 Years
---------------------- ------ ------- ------- --------
New Asia Fund -0.68% 7.47% -1.51% 5.93%
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
--------------------------- For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
--------------------
Year
Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
NET ASSET VALUE
Beginning of period $ 7.20 $ 4.93 $ 5.95 $ 8.64 $ 8.12
-------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.04 0.05 0.13 0.09 0.06
Net realized and
unrealized gain (loss) (0.08)** 2.31 (1.07) (2.71) 0.55
-------------------------------------------------------------------------------
Total from
investment activities (0.04) 2.36 (0.94) (2.62) 0.61
-------------------------------------------------------------------------------
Distributions
Net investment income (0.04) (0.09) (0.08) (0.06) (0.09)
Net realized gain - - - (0.01) -
-------------------------------------------------------------------------------
Total distributions (0.04) (0.09) (0.08) (0.07) (0.09)
-------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 7.12 $ 7.20 $ 4.93 $ 5.95 $ 8.64
Ratios/Supplemental Data
Total return* (0.68)% 48.73% (15.97)% (30.61)% 7.58%
-------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.08% 1.21% 1.29% 1.10% 1.11%
-------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.41% 0.87% 2.33% 0.76% 0.66%
-------------------------------------------------------------------------------
Portfolio turnover rate 52.2% 69.9% 68.1% 41.8% 42.0%
-------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 875 $ 996 $ 633 $ 877 $ 2,041
-------------------------------------------------------------------------------
* 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 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 New Asia Fund
--------------------------- October 31, 2000
PORTFOLIO OF INVESTMENTS
------------------------ Shares Value
------ -----
In thousands
CHINA 2.6%
Common Stocks 2.6%
China Petroleum & Chemical (Class H) (HKD) * 29,798,000 $ 5,846
-------------------------------------------------------------------------------
Huaneng Power International (HKD) 6,082,000 2,379
-------------------------------------------------------------------------------
PetroChina (HKD) 48,340,000 10,165
-------------------------------------------------------------------------------
Shanghai Industrial Holdings (HKD) 2,445,000 4,608
-------------------------------------------------------------------------------
Total China (Cost $22,076) 22,998
-------------------------------------------------------------------------------
HONG KONG 34.3%
Common Stocks 34.3%
Brilliance China Automotive Holdings 358,000 116
-------------------------------------------------------------------------------
Cathay Pacific Airways 2,165,000 3,928
-------------------------------------------------------------------------------
Cheung Kong Holdings 6,917,000 76,496
-------------------------------------------------------------------------------
China Mobile (Hong Kong) * 6,493,000 41,627
-------------------------------------------------------------------------------
China Resources Beijing 14,742,000 2,987
-------------------------------------------------------------------------------
China Unicom * 6,530,000 13,104
-------------------------------------------------------------------------------
Citic Pacific 1,060,000 4,254
-------------------------------------------------------------------------------
Dah Sing Financial 1,303,400 5,599
-------------------------------------------------------------------------------
Dao Heng Bank Group 2,987,760 15,094
-------------------------------------------------------------------------------
Esprit Holdings 9,089,988 7,809
-------------------------------------------------------------------------------
Great Eagle Holdings 5,743,000 8,247
-------------------------------------------------------------------------------
Hang Seng Bank 389,000 4,589
-------------------------------------------------------------------------------
Henderson Land Development 2,210,000 9,521
-------------------------------------------------------------------------------
<PAGE>
Hutchison Whampoa 5,413,900 67,335
-------------------------------------------------------------------------------
Li & Fung * 4,484,000 8,337
-------------------------------------------------------------------------------
MTR * 1,450,000 2,147
-------------------------------------------------------------------------------
New World China Land * 4,152,800 1,331
-------------------------------------------------------------------------------
Pacific Century CyberWorks * 14,019,427 10,786
-------------------------------------------------------------------------------
Phoenix Satellite Television Holdings * 22,854,000 5,333
-------------------------------------------------------------------------------
Sa Sa International Holdings 6,549,000 773
-------------------------------------------------------------------------------
Sino Land 4,500,000 2,005
-------------------------------------------------------------------------------
South China Morning Post 7,946,000 5,451
-------------------------------------------------------------------------------
Varitronix International 2,931,000 3,382
-------------------------------------------------------------------------------
Total Hong Kong (Cost $215,174) 300,251
-------------------------------------------------------------------------------
INDIA 20.0%
Common Stocks 20.0%
Apollo Hospitals 827,000 $ 3,707
-------------------------------------------------------------------------------
Britannia Industries 491,500 7,995
-------------------------------------------------------------------------------
Cipla 494,400 9,333
-------------------------------------------------------------------------------
Global E-Com * 984,000 4,960
-------------------------------------------------------------------------------
Global Tele-Systems * 1,028,000 23,135
-------------------------------------------------------------------------------
HCL Infosystems * 354,000 1,691
-------------------------------------------------------------------------------
HCL Technologies 59,000 1,487
-------------------------------------------------------------------------------
HDFC Bank 2,181,000 11,686
-------------------------------------------------------------------------------
Hindustan Lever 2,603,000 9,907
-------------------------------------------------------------------------------
Housing Development Finance 2,070,800 20,737
-------------------------------------------------------------------------------
ICICI Bank ADR (USD) * 453,800 2,156
-------------------------------------------------------------------------------
ICICI Bank 1,791,842 4,227
-------------------------------------------------------------------------------
<PAGE>
ICICI 8,457,722 13,521
-------------------------------------------------------------------------------
ICICI ADR (USD) 349,962 3,303
-------------------------------------------------------------------------------
ITC 326,500 5,309
-------------------------------------------------------------------------------
McDowell 1,960,800 2,606
-------------------------------------------------------------------------------
Pentamedia Graphics 542,000 4,037
-------------------------------------------------------------------------------
Ranbaxy Laboratories 842,500 12,539
-------------------------------------------------------------------------------
Reliance Industries * 4,108,000 26,584
-------------------------------------------------------------------------------
Zee Telefilms * 908,800 5,604
-------------------------------------------------------------------------------
Total India (Cost $173,936) 174,524
-------------------------------------------------------------------------------
PHILIPPINES 0.1%
Common Stocks 0.1%
La Tondena Distillers 1,449,300 822
-------------------------------------------------------------------------------
Total Philippines (Cost $653) 822
-------------------------------------------------------------------------------
SINGAPORE 8.0%
Common Stocks 8.0%
DBS Group Holdings 2,119,443 24,980
-------------------------------------------------------------------------------
Parkway Holdings 6,729,000 13,793
-------------------------------------------------------------------------------
Singapore Airlines 420,000 4,209
-------------------------------------------------------------------------------
Singapore Press Holdings 835,719 11,944
-------------------------------------------------------------------------------
Singapore Telecommunications 9,116,000 15,104
-------------------------------------------------------------------------------
Total Singapore (Cost $78,201) 70,030
-------------------------------------------------------------------------------
<PAGE>
SOUTH KOREA 12.5%
Common Stocks 12.5%
Housing & Commercial Bank 453,100 $ 10,894
-------------------------------------------------------------------------------
Hyundai Electronics Industries * 339,000 2,083
-------------------------------------------------------------------------------
Korea Electric Power 309,540 6,912
-------------------------------------------------------------------------------
Korea Telecom 282,600 16,645
-------------------------------------------------------------------------------
Korea Telecom ADR (USD) 267,000 9,846
-------------------------------------------------------------------------------
Korean Air Lines 501,650 2,620
-------------------------------------------------------------------------------
Mirae 881,900 1,419
-------------------------------------------------------------------------------
Opicom * 127,500 655
-------------------------------------------------------------------------------
Samsung Electronics 203,892 25,542
-------------------------------------------------------------------------------
Shinhan Bank 636,000 6,374
-------------------------------------------------------------------------------
South Korea Telecom 121,340 25,868
-------------------------------------------------------------------------------
Total South Korea (Cost $91,216) 108,858
-------------------------------------------------------------------------------
TAIWAN 12.0%
Common Stocks 12.0%
Acer Communication & Multimedia 391,000 466
-------------------------------------------------------------------------------
Ambit Microsystems 537,000 2,494
-------------------------------------------------------------------------------
Asustek Computer 1,173,800 5,851
-------------------------------------------------------------------------------
Elan Microelectronics * 1,276,000 3,773
-------------------------------------------------------------------------------
Far Eastern Textile 1,240,740 1,022
-------------------------------------------------------------------------------
Hon Hai Precision Industry 2,702,340 14,139
-------------------------------------------------------------------------------
Hon Hai Precision Industry GDR (144a) (USD) 32,115 369
-------------------------------------------------------------------------------
Powerchip Semiconductors GDR (USD) * 428,845 2,830
-------------------------------------------------------------------------------
President Chain Store 3,579,714 10,196
-------------------------------------------------------------------------------
<PAGE>
Siliconware Precision Industries * 6,453,676 4,915
-------------------------------------------------------------------------------
Taiwan Cellular * 2,351,000 4,913
-------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing * 10,827,144 32,850
-------------------------------------------------------------------------------
United Microelectronics * 10,573,440 18,659
-------------------------------------------------------------------------------
WYSE Technology Taiwan 297,800 160
-------------------------------------------------------------------------------
Yageo * 3,091,101 2,373
-------------------------------------------------------------------------------
Total Taiwan (Cost $94,083) 105,010
-------------------------------------------------------------------------------
THAILAND 1.8%
Common Stocks and Rights 1.8%
TelecomAsia * 14,757,000 8,886
-------------------------------------------------------------------------------
TelecomAsia, Rights * 1,597,894 363
-------------------------------------------------------------------------------
Total Access Communications (USD) * 2,029,000 $ 6,452
-------------------------------------------------------------------------------
Total Thailand (Cost $17,949) 15,701
-------------------------------------------------------------------------------
UNITED KINGDOM 2.1%
Common Stocks 2.1%
HSBC Holdings (HKD) 1,314,434 18,286
-------------------------------------------------------------------------------
Total United Kingdom (Cost $11,135) 18,286
-------------------------------------------------------------------------------
<PAGE>
UNITED STATES 4.4%
Common Stocks 0.2%
Asia Global Crossing (Class A) * 200,000 1,413
-------------------------------------------------------------------------------
1,413
-------------------------------------------------------------------------------
Money Market Funds 4.2%
Reserve Investment Fund, 6.68% # 37,143,189 37,143
-------------------------------------------------------------------------------
37,143
-------------------------------------------------------------------------------
Total United States (Cost $38,542) 38,556
-------------------------------------------------------------------------------
Total Investments in Securities
97.8% of Net Assets (Cost $742,965) $ 855,036
Other Assets Less Liabilities 19,649
NET ASSETS $ 874,685
* Non-income producing
# Seven-day yield
144a Security was purchased pursuant to Rule 144a under the Securities Act
of 1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at period-end amounts
to 0.04% of net assets.
ADR American depository receipt
GDR Global depository receipt
HKD Hong Kong dollar
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
--------------------------- October 31, 2000
STATEMENT OF ASSETS AND LIABILITIES
----------------------------------- In thousands
ASSETS
Investments in securities, at value (cost $742,965) $ 855,036
Securities lending collateral 64,534
Other assets 50,027
-----------------------------------------------------------------------------
Total assets 969,597
-----------------------------------------------------------------------------
LIABILITIES
Obligation to return securities lending collateral 64,534
Other liabilities 30,378
-----------------------------------------------------------------------------
Total liabilities 94,912
-----------------------------------------------------------------------------
NET ASSETS $ 874,685
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions (185,904)
Net unrealized gain (loss) 111,126
Paid-in-capital applicable to 122,763,033 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 949,463
-----------------------------------------------------------------------------
NET ASSETS $ 874,685
NET ASSET VALUE PER SHARE $ 7.12
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
---------------------------
STATEMENT OF OPERATIONS
----------------------- In thousands
Year
Ended
10/31/00
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $981) $ 14,207
Interest (net of foreign taxes of $40) 3,469
Securities lending 314
-------------------------------------------------------------------------------
Total Income 17,990
-------------------------------------------------------------------------------
Expenses
Investment management 9,914
Shareholder servicing 2,374
Custody and accounting 527
Prospectus and shareholder reports 165
Legal and audit 44
Registration 35
Directors 8
Miscellaneous 9
-------------------------------------------------------------------------------
Total expenses 13,076
Expenses paid indirectly (1)
-------------------------------------------------------------------------------
Net expenses 13,075
-------------------------------------------------------------------------------
Net investment income (loss) 4,915
-------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (net of foreign taxes of $10,269) 159,978
Foreign currency transactions (1,606)
-------------------------------------------------------------------------------
Net realized gain (loss) 158,372
-------------------------------------------------------------------------------
Change in net unrealized gain or loss
Securities (net of deferred foreign taxes of $4,274) (118,830)
Other assets and liabilities
denominated in foreign currencies (174)
-------------------------------------------------------------------------------
Change in net unrealized gain or loss (119,004)
-------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 39,368
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 44,283
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
---------------------------
Statement of Changes in Net Assets
In thousands
Year
Ended
10/31/00 10/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 4,915 $ 6,847
Net realized gain (loss) 158,372 17,705
Change in net unrealized gain or loss (119,004) 285,186
-------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 44,283 309,738
-------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (5,468) (11,370)
-------------------------------------------------------------------------------
Capital share transactions *
Shares sold 1,436,534 934,309
Distributions reinvested 5,282 10,841
Shares redeemed (1,601,775) (880,525)
-------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (159,959) 64,625
-------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period (121,144) 362,993
Beginning of period 995,829 632,836
-------------------------------------------------------------------------------
End of period $ 874,685 $ 995,829
*Share information
Shares sold 157,387 150,881
Distributions reinvested 580 2,217
Shares redeemed (173,435) (143,305)
-------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (15,468) 9,793
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
--------------------------- October 31, 2000
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
----------------------------------------
T. Rowe Price International Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The New Asia Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation, and commenced operations on September 28, 1990.
The fund seeks long-term growth of capital through investments in companies
located, or with primary operations, in Asia (excluding Japan).
The accompanying financial statements were prepared in accordance with
generally accepted accounting principles, which require the use of estimates
made by fund management.
Valuation Equity securities are valued at the last quoted sales price at
the time the valuations are made. A security that is listed or traded on more
than one exchange is valued at the quotation on the exchange determined to be
the primary market for such security.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Currency Translation Assets and liabilities denominated in foreign
currencies are translated into U.S. dollar values each day at the prevailing
exchange rate, using the mean of the bid and offer prices of such currencies
against U.S. dollars quoted by a major bank. Purchases and sales of securities
and income and expenses are translated into U.S. dollars at the prevailing
exchange rate on the dates of such transactions. The effect of changes in
foreign exchange rates on realized and unrealized security gains and losses is
reflected as a component of such gains and losses.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from net investment income and realized gains
determined in accordance with generally accepted accounting principles. Expenses
paid indirectly reflect credits earned on daily uninvested cash balances at the
custodian and are used to reduce the fund's custody charges.
<PAGE>
NOTE 2 - INVESTMENT TRANSACTIONS
--------------------------------
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Emerging Markets At October 31, 2000, approximately 58% of the fund's net
assets were invested in securities of companies located in emerging markets.
Future economic or political developments could adversely affect the liquidity
or value, or both, of such securities.
Securities Lending The fund lends its securities to approved brokers to
earn additional income and receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a money
market pooled account by the fund's lending agent. Collateral is maintained over
the life of the loan in an amount not less than 100% of the value of loaned
securities. Although risk is mitigated by the collateral, the fund could
experience a delay in recovering its securities and a possible loss of income or
value if the borrower fails to return them. At October 31, 2000, the value of
loaned securities was $60,158,000; aggregate collateral consisted of $64,534,000
in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $589,921,000 and $743,277,000, respectively, for the year
ended October 31, 2000.
NOTE 3 - FEDERAL INCOME TAXES
-----------------------------
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income. In 2000, the fund utilized $170,244,000 of capital loss
carryforwards for federal income tax purposes. As of October 31, 2000, the fund
has $184,969,000 of capital loss carryforwards, all of which expires in 2006.
The fund intends to retain gains realized in future periods that may be offset
by available capital loss carryforwards.
In order for the fund's capital accounts and distributions to shareholders
to reflect the tax character of certain transactions, the following
reclassifications were made during the year ended October 31, 2000. The
reclassifications relate primarily to foreign taxes and net operating losses.
The results of operations and net assets were not affected by the
increases/(decreases) to these accounts.
<PAGE>
Undistributed net investment income $ (4,330,000)
Undistributed net realized gain 12,758,000
Paid-in-capital (8,428,000)
At October 31, 2000, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$742,965,000. Net unrealized gain aggregated $112,071,000 at period-end, of
which $196,916,000 related to appreciated investments and $84,845,000 to
depreciated investments.
NOTE 4 - FOREIGN TAXES
----------------------
The fund is subject to foreign income taxes imposed by certain countries in
which it invests. Foreign income taxes are accrued by the fund as a reduction of
dividend and interest income.
Gains realized upon disposition of Indian securities held by the fund are
subject to capital gains tax in India, payable prior to repatriation of sales
proceeds. The fund accrues a deferred tax liability for net unrealized gains,
which totaled $770,000 at October 31, 2000.
NOTE 5 - RELATED PARTY TRANSACTIONS
-----------------------------------
The fund is managed by T. Rowe Price International, Inc. (the manager), a
wholly owned subsidiary of T. Rowe Price Associates, Inc. (Price Associates).
The investment management agreement between the fund and the manager provides
for an annual investment management fee, of which $612,000 was payable at
October 31, 2000. The fee is computed daily and paid monthly, and consists of an
individual fund fee equal to 0.50% of average daily net assets and a group fee.
The group fee is based on the combined assets of certain mutual funds sponsored
by the manager or Price Associates (the group). The group fee rate ranges from
0.48% for the first $1 billion of assets to 0.295% for assets in excess of $120
billion. At October 31, 2000, and for the year then ended, the effective annual
group fee rate was 0.32%. The fund pays a pro-rata share of the group fee based
on the ratio of its net assets to those of the group.
In addition, the fund has entered into agreements with Price Associates and
two wholly owned subsidiaries of Price Associates, pursuant to which the fund
receives certain other services. Price Associates computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $1,984,000 for the year ended
October 31, 2000, of which $190,000 was payable at period-end.
<PAGE>
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum)
may invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, Price Associates, and, in the case of T. Rowe Price Spectrum
International, T. Rowe Price International. Spectrum International Fund held
approximately 0.3% of the outstanding shares of the New Asia Fund at October 31,
2000. For the year then ended, the fund was allocated $7,000 of Spectrum
expenses.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by Price Associates. The Reserve Funds are offered
as cash management options only to mutual funds and other accounts managed by
Price Associates or T. Rowe Price International, and are not available to the
public. The Reserve Funds pay no investment management fees. Distributions from
the Reserve Funds to the fund for the year ended October 31, 2000, totaled
$3,289,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the year ended October 31, 2000, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $74,280,000 with
certain affiliates of the manager and paid commissions of $195,000 related
thereto.
================================================================================
<PAGE>
T. Rowe Price New Asia Fund
---------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
To the Board of Directors of T. Rowe Price International Funds, Inc. and
Shareholders of New Asia Fund
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of New Asia Fund (one of the
portfolios comprising T. Rowe Price International Funds, Inc., hereafter
referred to as the "Fund") at October 31, 2000, and the results of its
operations, the changes in its net assets and the financial highlights for each
of the fiscal periods presented, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 2000 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 2000
================================================================================
T. Rowe Price New Asia Fund
---------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 10/31/00
We are providing this information as required by the Internal Revenue Code.
The amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund will pass through foreign source income of $2,861,000 and foreign
taxes paid of $11,290,000.
<PAGE>
ANNUAL MEETING RESULTS
----------------------
The T. Rowe Price New Asia Fund held an annual meeting on October 25, 2000,
to approve a new investment management agreement, to amend the fund's
fundamental policy to permit the fund to change its status from diversified to
nondiversified, to elect fund directors, and to ratify the Board of Directors'
selection of PricewaterhouseCoopers LLP as the fund's independent accountants.
The results of voting were as follows (by number of shares):
To approve a new investment management agreement:
Affirmative: 72,172,126.698
Against: 1,426,796.632
Abstain: 1,929,738.928
Total: 75,528,662.258
To amend the fund's fundamental policy to permit it to change its status from
diversified to nondiversified:
Affirmative: 53,449,664.912
Against: 7,211,629.463
Abstain: 1,789,121.883
Broker Non-votes: 13,078,246.000
Total: 75,528,662.258
To elect the directors listed below:
M. David Testa
Affirmative: 73,469,056.332
Withhold: 2,059,605.926
Total: 75,528,662.258
Martin G. Wade
Affirmative: 73,464,230.815
Withhold: 2,064,431.443
Total: 75,528,662.258
Anthony W. Deering
Affirmative: 73,470,786.305
Withhold: 2,057,875.953
Total: 75,528,662.258
Donald W. Dick, Jr.
Affirmative: 73,537,388.140
Withhold: 1,991,274.118
Total: 75,528,662.258
Paul M. Wythes
Affirmative: 73,460,534.044
Withhold: 2,068,128.214
Total: 75,528,662.258
To ratify the appointment of PricewaterhouseCoopers LLP as independent
accountants:
Affirmative: 73,522,328.005
Against: 788,703.777
Abstain: 1,217,630.476
Total: 75,528,662.258
================================================================================
<PAGE>
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
FOR THE HEARING IMPAIRED, CALL:
1-800-367-0763
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears
on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution
only to shareholders and to others who
have received a copy of the prospectus
appropriate to the fund or funds
covered in this report.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site.
BALTIMORE AREA
Downtown - new address
105 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
<PAGE>
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
2260 Briargate Parkway
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
SAN FRANCISCO AREA
1990 North California Boulevard
Suite 100
Walnut Creek
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F39-050 10/31/00
