0000950109-94-000925.txt : 19940602 0000950109-94-000925.hdr.sgml : 19940602 ACCESSION NUMBER: 0000950109-94-000925 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940430 FILED AS OF DATE: 19940601 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICE T ROWE INTERNATIONAL FUNDS INC CENTRAL INDEX KEY: 0000313212 STANDARD INDUSTRIAL CLASSIFICATION: IRS NUMBER: 521175211 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02958 FILM NUMBER: 94532509 BUSINESS ADDRESS: STREET 1: 100 E PRATT ST CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 3015472000 FORMER COMPANY: FORMER CONFORMED NAME: PRICE T ROWE INTERNATIONAL TRUST DATE OF NAME CHANGE: 19900301 FORMER COMPANY: FORMER CONFORMED NAME: PRICE T ROWE INTERNATIONAL FUND INC DATE OF NAME CHANGE: 19890914 N-30D 1 T ROWE PRICE NEW ASIA FELLOW SHAREHOLDERS Asian stock markets led world equity markets down in the quarter ending April 1994. The accelerating, near-vertical rise in the fourth quarter of 1993 terminated with declines of 20% to 30% from the previous highs. As of April 30, however, most markets were still above their levels when the buying madness took hold last October. We believe momentum investors have now been shaken out of Asia. Fundamental investors are returning, attracted by continued high earnings growth and valuations which are again more reasonable. PERFORMANCE COMPARISON
Periods Ended 4/30/94 3 Months 6 Months --------------------- New Asia Fund -11.4% -3.3% MSCI Pacific Ex-Japan -11.0 1.4
-------------------------------------------------------------------------------- MARKET REVIEW AND STRATEGY THAILAND'S stock market fell 14% over the quarter but remained substantially higher than when its rally began at the end of September. Economic developments have been largely favorable. Export figures have picked up from the first half of 1993, and the current account deficit is now significantly smaller than previously expected. We took advantage of market weakness to add to SIAM CEMENT, after having reduced the stock's weighting in the fourth quarter of last year. The MALAYSIAN market, a leader in the previous quarter, fell 2%. In contrast to other governments, the Malaysian government authorities had taken an active role in deflating the 1993 mini-bubble. Early in January, the current and former finance ministers both warned against excessive speculation, stating by way of example that they had sold most of their personal stockholdings and that anyone who was still very active in the market was a fool! In a dramatic policy move, the bank reserve requirement was raised to drain liquidity from the system, measures were taken to freeze foreign inflows, and brokers faced stricter limits on individual trading. The authorities' purpose was to prevent speculation from getting out of hand and diverting corporate and individual resources from the more important task of nation-building. The latter will continue quite aggressively in 1994, with GDP growth expected again to top 8% with relatively little inflation. However, the Malaysian recovery is well advanced. Labour shortages are worsening, and last year's record trade surplus is eroding. More worrisome are the huge financings planned by companies to pay for ambitious infrastructure projects. This extra supply of equity, estimated at three times last year's level, could cap the market's upside potential. HONG KONG suffered less from official intervention than from a reversal of foreign buying, primarily by American and Japanese investors. Last quarter's euphoria turned to profit-taking and renewed awareness of Hong Kong's risks. China's economy is definitely overheating. Dissident arrests have more to do with forestalling another Tiananmen Square economic protest than with thumbing Beijing's nose at the U.S. The U.S. will most likely renew China's most favored nation trade status, but with some conditions and after greater debate than GEOGRAPHICAL DIVERSIFICATION [PIE CHART APPEARS HERE] Malaysia 24.7% New Zealand 6.1% Singapore 1.2% Thailand 7.3% All Others 15.1% Australia 12.2% Hong Kong 22.6%
last year. Meanwhile, Hong Kong's democracy talks between China and the UK have completely broken down, causing China to delay approval for the two major infrastructure projects critical to Hong Kong's long-term growth -- the new airport and the new container terminal. Finally, Hong Kong authorities have awakened to the territory's property bubble, promising measures by mid-summer to deflate it gradually. Investors remember Japan's property bubble and worry that this one will end similarly. Of the various risks, only Chinese economic overheating truly worries us. A hard landing for that economy seems increasingly likely and would undoubtedly keep further foreign buying of Hong Kong stocks at bay for 1994. The PHILIPPINE and INDONESIAN markets also suffered from foreign profit- taking. In Indonesia, the economy remains on a stable growth track although concerns are emerging over a slowing of exports. We regard market weakness as a buying opportunity and will be looking to add investments over the second quarter. The Philippine economy is benefiting from a major improvement in the electricity shortfall problem, which plagued the economy in 1993. The market nervously awaits IMF approval of a three-year extended loan, which would improve confidence considerably. SINGAPORE stocks fell only a little, around 1%, but also rose less dramatically last November and December. During the quarter, we cut our holdings in the interest-sensitive banking sector, which had been our major sector exposure, as rising rates and lower stockbroking profits may lead to disappointing performance. The proceeds have been redeployed into commercial property and hotels as Singapore is finally realising its promise as a regional business center, midway between the emerging colossi of China and India. With commercial rents only 20% of those in Hong Kong, we foresee a steady convergence. Our overall weighting in Singapore has fallen, however, as we can find better values elsewhere. Our weightings in KOREA remained steady. While the fundamentals look better than at any time since the mid-1980s, restrictions on foreign investment continue to make it difficult to increase our position. We have been using profits from the markets just reviewed to increase our weightings in AUSTRALIA and NEW ZEALAND, whose markets did not run up to speculative peaks last year. Both economies are just starting to recover, inflation rates are still falling, and, if the U.S. recovery is joined next year by Europe and Asia, both should benefit from higher commodity prices. Although results were negative, the AUSTRALIAN stock market was encouragingly resilient considering the hammering taken by its bond market, where long bond yields rose to over 8% during the quarter from a low of 6.4% in February. We are increasingly enthusiastic about economic developments in Australia and are forecasting a period of sustainable, low-inflation growth. Renewed interest in commodities is providing good support for the currency. Exports of manufactured goods are picking up, which will provide support for the current account and thereby remove the main constraint on growth. We added ANZ BANK, which is highly sensitive to the economic recovery. Economic fundamentals in NEW ZEALAND go from strength to strength. Growth forecasts were upgraded again during the quarter, inflation remained negligible, and fiscal balance forecasts were substantially improved. As icing on the cake, New Zealand as an agricultural exporter stands to gain more than virtually any other nation from the recent GATT agreement. INVESTMENT OUTLOOK For the rest of 1994, Asian equity prices will be in a tug-of-war between earnings growth and higher U.S. interest rates. Moreover, when stock prices do recover, upside is likely to be limited by a large supply of new stock offerings from government privatisations and corporations. Do not expect last year's 70+% returns to be repeated. Nevertheless, we feel confident that Asian stocks should outperform U.S. equities, which will be struggling with the same valuation tug-of-war but with less dynamic and sustainable earnings growth than in Asia. Respectfully submitted, /s/ Martin G. Wade Martin G. Wade President May 19, 1994 2 TWENTY-FIVE LARGEST HOLDINGS April 30, 1994
Percent of Net Assets ---------- United Overseas Bank, Singapore 2.4% Jurong Shipyard, Singapore 1.8 Aokam Perdana, Malaysia 1.8 Swire Pacific `A', Hong Kong 1.7 Technology Resources Industries, Malaysia 1.7 Sembawang Shipyard, Singapore 1.6 Bangkok Bank, Thailand 1.6 Keppel, Singapore 1.6 United Engineers, Malaysia 1.6 Carter Holt Harvey, New Zealand 1.5 Siam Cement, Thailand 1.4 Westmont, Malaysia 1.4 Fletcher Challenge, New Zealand 1.4 Western Mining, Australia 1.4 Hutchison Whampoa, Hong Kong 1.4 Hong Kong Telecommunications, Hong Kong 1.3 Mayne Nickless, Australia 1.3 Guoco Group, Hong Kong 1.3 Hong Kong Land Holdings, Hong Kong 1.2 Golden Plus Holdings, Malaysia 1.2 Air New Zealand'B', New Zealand 1.2 Granite Industries, Malaysia 1.1 Malaysian Helicopter, Malaysia 1.1 Wharf Holdings, Hong Kong 1.1 Land & General Berhad, Malaysia 1.1 -------------------------------------------------------------------- TOTAL 36.2% ====================================================================
INDUSTRY DIVERSIFICATION April 30, 1994
Percent of Net Assets ---------- Real Estate 16.3% Banking 14.2 Transport & Storage 6.8 Multi-Industry 6.2 Machinery & Engineering 6.0 Forestry & Paper Products 5.3 Building Materials & Construction 4.7 Media 4.6 Metals 3.7 Textile 3.2 Financial Services 3.1 Business & Public Services 2.6 Food & Household Products 2.4 Entertainment/Leisure 2.3 Merchandising 2.0 Telecommunications 1.4 Electrical & Electronics 1.1 Other Industries 5.5 Short-Term Investments 8.3 Other Assets Less Liabilities 0.3 -------------------------------------------------------------------- NET ASSETS 100.0% ====================================================================
SECURITY CLASSIFICATION April 30, 1994
Cost Market Value Percent of Net Assets (000) (000) ----------------------------------------- ---------- ------------ Common Stocks, Rights & Warrants, 89.9% $1,690,402 $1,756,054 Bonds, 1.5% 29,355 29,488 Short-Term Investments, 8.3% 163,143 163,143 ---------- ---------- Total Investments, 99.7% 1,882,900 1,948,685 Other Assets Less Liabilities, 0.3% 5,432 5,412 ----------------------------------------------------------------------------- NET ASSETS, 100.0% $1,888,332 $1,954,097 =============================================================================
3 PORTFOLIO OF INVESTMENTS (VALUE IN THOUSANDS) T. ROWE PRICE NEW ASIA FUND / APRIL 30, 1994 (UNAUDITED) AUSTRALIA -- 12.2%
Value -------- COMMON STOCKS 10,398,474 shs. ANI..............................................$ 15,671 415,200 Ampolex.......................................... 1,305 4,568,000 Australia & New Zealand Bank Group............... 15,367 1,507,097 Broken Hill Property............................. 18,300 15,828 CSR.............................................. 54 342,125 Coca Cola Amatil................................. 2,077 1,679,200 Commonwealth Bank of Australia................... 9,859 2,407,438 Email............................................ 8,529 6,016,900 John Fairfax Holdings............................ 11,775 4,742,390 MIM.............................................. 9,789 4,169,954 Mayne Nickless................................... 24,721 1,956,643 National Australia Bank.......................... 16,603 2,357,366 News Corporation................................. 16,299 4,551,450 Nine Network..................................... 17,230 2,675,218 Philip Burns..................................... 7,643 12,987,400 TNT.............................................. 19,851 5,318,949 Western Mining................................... 26,593 7,175,052 Woolworths....................................... 15,938 Total Australia 237,604
HONG KONG -- 22.6%
COMMON STOCKS & WARRANTS 12,405,200 Amoy Properties.................................. 16,381 6,007,220 wts. *Amoy Properties, 3/31/95......................... 2,858 36,069,000 shs. +Applied International Holdings................... 11,674 2,266,000 B & B Asia....................................... 807 1,852,000 Champion Technology.............................. 689 3,971,000 China Light & Power.............................. 20,692 7,850,000 China Strategic Investment....................... 4,167 1,034,000 wts. *China Strategic Investment, 8/30/97.............. 482 4,409,000 shs. Citic Pacific.................................... 12,272 3,721,000 wts. *Citic Telecommunications, 2/10/95................ 4,673 584,293 shs. *Consolidated Electric Power Asia................. 870 6,723,260 *Dao Heng Bank Group.............................. 20,367 16,672,000 +Fairyoung Holdings............................... 7,878 5,171,000 Giordano Holdings................................ 2,326 31,611,000 Great Eagle Holdings............................. 18,620 8,256,000 wts. *Guangdong Investment, 12/31/94................... 3,153 5,308,000 shs. Guoco Group...................................... 24,566 17,999,000 Hon Kwok Land Investment......................... 7,107 8,000,000 Hong Kong China.................................. 3,936 8,467,000 Hong Kong Land Holdings.......................... 23,786 13,576,000 Hong Kong Telecommunications..................... 26,011 22,638,000 Hopewell Holdings................................ 20,222 6,449,000 Hutchison Whampoa................................ 26,507 6,275,000 Hysan Development................................ 18,359 4,920,000 JCG Holdings..................................... 3,137 3,530,000 Lai Sun Garment International.................... 6,626 21,381,881 Luks Industries.................................. 4,623 3,036,776 wts. *Luks Industries, 6/30/96......................... 169 32,296,000 shs. Manhattan Card Company........................... 11,602 15,800,000 Ming Pao Enterprise.............................. 11,045 6,698,000 wts. *National Mutual Asia, 3/31/95.................... 1,387 4,704,546 shs. New World Development............................ 14,434 13,524,000 *Paliburg Development............................. 2,031 15,950,098 Paliburg International........................... 12,699 2,935,000 Pioneer Industries International................. 1,681 17,100,000 S. Megga International........................... 4,981 1,000,000 wts. *S. Megga International, 12/29/96................. 177 4,678,891 shs. Sing Tao Holdings................................ 6,421 18,207,090 South Sea Development............................ 1,626 9,110,000 Swank International Manufacturing................ 2,347 2,518,000 wts. *Swank International Manufacturing, 6/30/95....... 209 4,755,000 shs. Swire Pacific `A'................................ 34,164 8,603,730 Tai Cheung Holdings.............................. 12,363 12,688,000 Techtronic Industries............................ 2,250 5,375,000 Tian An China Investment......................... 1,287 1,125,000 wts. *Tian An China Investment, 1/25/96................ 67 407,000 *Tomei International, 5/31/94..................... 1 609,000 *Tomei International, 6/30/95..................... 16 3,000,000 shs. *Ultronics International Holdings................. 796 5,660,000 Wharf Holdings................................... 21,835 900,000 Wing Hang Bank................................... 2,086 4,900,000 *Yizheng Chemical Fibre........................... 1,522 Total Hong Kong 439,985
INDIA -- 0.2% COMMON STOCK 203,000 Reliance Industries GDS (USD).................... 3,603
4 INDONESIA -- 2.7%
COMMON STOCKS 475,000 shs. Astra International..............................$ 3,612 3,460,000 *Bank Dagang Nasional Indonesia................... 5,054 3,200,000 Dharmala International........................... 5,565 818,500 Duta Anggada Realty.............................. 1,831 149,600 Gadjah Tunggal (L)............................... 241 1,355,000 Indorama Synthetics.............................. 3,959 921,000 Inti Indorayon Utama............................. 2,349 411,000 Modernland Realty................................ 1,334 3,561,000 Panin Bank....................................... 5,449 1,548,500 Semen Cibinong................................... 8,617 874,000 United Tractors.................................. 1,945 39,956 CORPORATE BOND 12,900,000 USD Indofood, Cv., 3.50%, 6/4/97..................... 12,835 Total Indonesia 52,791
MALAYSIA -- 24.7%
COMMON STOCKS, RIGHTS & WARRANTS 7,204,000 shs. Affin Holdings................................... 11,778 3,150,000 Aokam Perdana.................................... 30,571 427,000 wts. *Aokam Perdana, 4/16/97........................... 3,730 4,390,000 shs. Arab Malaysian Finance........................... 16,223 2,200,000 Berjaya Group.................................... 2,373 900,000 Berjaya Industrial............................... 840 15,500,000 Berjaya Leisure.................................. 17,473 6,521,250 rts. *Berjaya Leisure.................................. 2,422 9,000,666 shs. Berjaya Sports Toto.............................. 16,127 2,054,000 Berjaya Sports Toto, loan stock.................. 2,990 2,000,000 +CHG Industries................................... 6,607 4,000,000 Commerce Asset Holdings.......................... 14,184 1,333,333 wts. *Commerce Asset Holdings, 6/27/98................. 1,782 5,285,000 shs. Development & Commercial Bank.................... 11,146 2,000,000 Dunlop Estates................................... 5,972 5,000,000 Faber Group...................................... 6,868 3,584,000 Golden Plus Holdings............................. 16,455 1,457,666 Golden Plus Holdings, new........................ 6,665 8,115,000 +Granite Industries............................... 21,961 1,806,000 Hong Leong Properties............................ 2,535 9,985,000 *KL Industries Holdings........................... 15,729 2,343,400 Kelanamas........................................ 5,205 1,163,200 wts. *Kelanamas, 2/7/99................................ 1,138 6,135,000 shs. Land & General Berhad............................ 20,839 19,848,000 MBF Capital...................................... 20,152 6,201,000 Magnum........................................... 14,582 4,637,000 Malaysian Helicopter............................. 20,424 3,878,000 Metacorp......................................... 18,673 18,000 shs. Multi-Purpose Holding............................ 31 6,000,000 Mycom............................................$ 13,998 5,000,000 Olympia Industries............................... 6,868 1,985,000 Perusahaan Sadur................................. 5,335 6,015,000 Public Bank...................................... 12,237 1,000,000 Public Finance Berhad............................ 1,568 14,908,000 Renong........................................... 20,256 1,700,000 Resorts World.................................... 9,518 1,700,000 Southern Bank.................................... 4,283 7,861,000 Technology Resources Industries.................. 33,744 6,946,000 United Engineers................................. 30,335 3,973,000 rts. *United Engineers................................. 82 3,633,000 shs. Westmont......................................... 27,122 480,821 CORPORATE BOND 6,521,250 MYR Berjaya Leisure, 5.00%, 3/22/99.................. 1,960 Total Malaysia 482,781
NEW ZEALAND -- 6.1%
COMMON STOCKS & RIGHTS 7,959,484 shs. +Air New Zealand `B'.............................. 22,518 826,673 Brierley Investments............................. 625 13,441,322 Carter Holt Harvey............................... 28,636 2,243,200 Fernz............................................ 10,167 224,320 rts. *Fernz............................................ 558 3,516,786 shs. Fisher & Paykel.................................. 8,934 11,084,300 Fletcher Challenge............................... 21,566 3,499,075 Fletcher Challenge, Forests Division............. 5,050 1,572,050 Independent Newspapers........................... 5,128 6,701,500 +Shortland Properties............................. 3,947 2,167,062 Wilson & Horton.................................. 10,822 117,951 CORPORATE BOND 3,721,666 NZD Shortland Properties, 7.50%, 12/31/98............ 2,149 Total New Zealand 120,100
PHILIPPINES -- 1.0%
COMMON STOCKS 17,113,500 shs. *JG Summit Holdings............................... 6,836 50,000 *JG Summit Holdings GDS (USD)..................... 1,875 69,220 Philippine Long Distance Telephone............... 4,349 90,000 Philippine Long Distance Telephone (USD)......... 5,839 Total Philippines 18,899
5 T. Rowe Price New Asia Fund/Portfolio of Investments SINGAPORE -- 12.0%
COMMON STOCKS & WARRANTS 500,000 shs. Causeway Investment..............................$ 830 500,000 wts. *Causeway Investment, 10/20/94.................... 582 2,854,000 shs. DBS Land......................................... 8,773 2,866,000 Far East Levingston Shipbuilding................. 12,072 4,350,000 GK Goh Holdings.................................. 6,014 2,400,000 Intraco.......................................... 3,859 3,678,000 Jurong Shipyard.................................. 35,243 4,331,000 Keppel........................................... 31,751 133,000 Keppel, loan stock............................... 146 2,000,000 Neptune Orient Lines............................. 2,920 714,000 Overseas Union Enterprises....................... 3,444 7,650,000 Pacific Carriers................................. 7,921 1,321,000 Sembawang Maritime, loan stock................... 1,954 4,000,000 Sembawang Shipyard............................... 32,154 1,092,300 Singapore Press.................................. 17,912 2,578,000 Tiger Balm....................................... 3,896 5,081,500 United Overseas Bank............................. 44,116 143,000 wts. *United Overseas Bank, 11/23/94................... 680 680,968 *United Overseas Bank, 6/17/97.................... 2,781 10,450,000 shs. Wing Tai Holdings................................ 18,010 Total Singapore 235,058
SOUTH KOREA -- 1.9% COMMON STOCKS 390,999 Daewoo........................................... 7,721 440,000 Korea Electric Power............................. 15,253 80 *Korea Growth Trust IDR (USD)..................... 2,920 120,000 Kun Young Construction........................... 2,095 71,400 Pohang Iron & Steel.............................. 7,194 53,637 Samsung Construction............................. 2,739 Total South Korea 37,922
TAIWAN -- 0.7% COMMON STOCK 50,700 Taiwan Fund (USD)................................ 1,394 CORPORATE BONDS 4,720,000 USD Microtek International, Cv., 3.50%, 6/26/01...... 5,298 2,710,000 Sincere Navigation, Cv., 3.75%, 5/26/03.......... 2,819 3,800,000 Tung Ho Steel, Cv., 4.00%, 7/26/01............... 4,427 12,544 Total Taiwan 13,938
THAILAND -- 7.3% COMMON STOCKS 439,600 shs. Advanced Information Service.....................$ 16,341 4,240,400 Bangkok Bank..................................... 31,997 1,752,000 Bangkok Land..................................... 6,262 2,481,100 Bank of Ayudhya.................................. 7,439 296,000 Land & House..................................... 6,748 71,000 Loxley........................................... 1,404 345,000 Loxley (L)....................................... 6,823 2,500,000 NTS Steel Group.................................. 6,950 75,000 Robinson Department Stores....................... 118 644,200 Siam Cement...................................... 28,040 1,576,800 Siam Commercial Bank............................. 9,832 3,388,720 Thai Farmers Bank................................ 17,495 1,210,000 Thai Military Bank............................... 3,412 Total Thailand 142,861
SHORT-TERM INVESTMENTS -- 8.3% COMMERCIAL PAPER $6,900,000 Asset Securitization Cooperative, 3.95%, 6/15/94. 6,858 13,850,000 BMW US Capital, 3.85%, 5/24/94................... 13,798 13,500,000 CS First Boston Group, 3.625%, 5/2/94............ 13,476 30,000,000 Caisse des Depots, 3.63 - 3.637%, 5/11 - 5/18/94. 29,912 2,000,000 Finnish Export Credit, 3.65%, 5/16/94............ 1,994 139,000 Harvard University, 3.55%, 5/2/94................ 139 10,000,000 Hoechst, 3.82%, 5/25/94.......................... 9,971 9,000,000 New South Wales Treasury, 3.67%, 5/23/94......... 8,962 5,000,000 Nynex, 3.75%, 5/19/94............................ 4,974 10,000,000 Panasonic Finance, 3.64%, 5/11/94................ 9,971 10,780,000 Preferred Receivables Funding, 3.65 - 3.70%, 5/9 - 5/16/94.................................. 10,741 15,000,000 Prudential Funding, 3.58%, 5/2/94................ 14,996 7,465,000 RTZ America, 3.65%, 5/13/94...................... 7,441 10,000,000 SBNSW, 3.65%, 5/25/94............................ 9,956 10,000,000 Treasury Corporation of Victoria, 3.65%, 5/27/94. 9,956 153,145
6 OTHER $10,000,000 Corporate Asset Funding, Floating Rate Medium-Term Notes, 3.72%, 12/12/94...............$ 9,998 Total Short-Term Investments 163,143 ============================================================================== Total Investments in Securities -- 99.7% of Net Assets (Cost-$1,882,900) $1,948,685 ==============================================================================
* Non-income producing + Affiliated company (MYR) Malaysian ringgit denominated (NZD) New Zealand dollar denominated (USD) U.S. dollar denominated (L) Local registered shares STATEMENT OF ASSETS AND LIABILITIES T. Rowe Price New Asia Fund / April 30, 1994 (Unaudited)
Amounts in Thousands ------------------------------- ASSETS Investments in securities at value (Cost - $1,882,900)....................... $1,948,685 Other assets................................................................. 65,475 ---------- Total assets.............................................................. $2,014,160 LIABILITIES Payable for investment securities purchased.................................. 25,565 Other liabilities............................................................ 34,498 ---------- Total liabilities......................................................... 60,063 ---------- Net Assets Consisting of: Accumulated net investment income - net of distributions........................ 3,311 Accumulated realized gains/losses - net of distributions........................ 187,254 Unrealized appreciation of investments.......................................... 65,765 Paid-in-capital applicable to 104,491,854 shares of $0.01 par value capital stock outstanding; 1,000,000,000 shares of the Corporation authorized........................... 1,697,767 ---------- NET ASSETS...................................................................... $1,954,097 ========== NET ASSET VALUE PER SHARE....................................................... $18.70 ====== ==================================================================================================================
The accompanying notes are an integral part of these financial statements. 7 STATEMENT OF OPERATIONS T. Rowe Price New Asia Fund / Six Months Ended April 30, 1994 (Unaudited)
Amounts in Thousands ---------------------------- INVESTMENT INCOME Income Dividends (net of foreign taxes of $1,750)........................... $ 15,265 Interest............................................................. 2,737 --------- Total income......................................................... $ 18,002 Expenses Investment management fees........................................... 8,341 Shareholder servicing fees & expenses................................ 3,561 Custodian and accounting fees & expenses............................. 668 Registration fees & expenses......................................... 218 Prospectus & shareholder reports..................................... 168 Directors' fees & expenses........................................... 18 Legal & auditing fees................................................ 12 Proxy & annual meeting expenses...................................... 12 Miscellaneous expenses............................................... 11 --------- Total expenses....................................................... 13,009 --------- Net investment income................................................... 4,993 --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) Securities........................................................... 193,224 Foreign currency transactions........................................ (1,111) --------- Net realized gain....................................................... 192,113 Change in unrealized appreciation or depreciation Securities........................................................... (308,332) Other assets and liabilities denominated in foreign currencies................................................ (24) --------- Change in unrealized appreciation or depreciation....................... (308,356) --------- Net loss on investments................................................. (116,243) --------- DECREASE IN NET ASSETS FROM OPERATIONS.................................. $(111,250) ========= =========================================================================================================
The accompanying notes are an integral part of these financial statements. 8 STATEMENT OF CHANGES IN NET ASSETS T. Rowe Price New Asia Fund (Unaudited)
Six Months Ended Ten Months Ended Year Ended April 30, 1994 October 31, 1993* December 31, 1992 ---------------- ----------------- ----------------- Amounts in Thousands --------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS Operations Net investment income..................................... $ 4,993 $ 5,979 $ 3,240 Net realized gain on investments.......................... 192,113 32,534 5,830 Change in unrealized appreciation or depreciation of investments.............................................. (308,356) 366,692 4,396 ---------- ---------- -------- Increase (decrease) in net assets from operations......... (111,250) 405,205 13,466 ---------- ---------- -------- Distributions to shareholders Net investment income..................................... (6,625) -- (4,716) Net realized gain on investments.......................... (35,966) -- (6,130) Decrease in net assets from distributions to ---------- ---------- -------- shareholders............................................. (42,591) -- (10,846) ---------- ---------- -------- Capital share transactions Sold 64,606, 65,534, and 21,532 shares.................... 1,315,621 1,033,146 276,494 Distributions reinvested of 1,929, 0, and 820 shares...... 40,413 -- 10,205 Redeemed 45,579, 6,793, and 6,266 shares.................. (898,546) (102,405) (79,353) ---------- ---------- -------- Increase in net assets from capital share transactions.... 457,488 930,741 207,346 ---------- ---------- -------- Net equalization............................................. -- -- 1,616 ---------- ---------- -------- Total increase............................................... 303,647 1,335,946 211,582 NET ASSETS Beginning of period....................................... 1,650,450 314,504 102,922 ---------- ---------- -------- End of period............................................. $1,954,097 $1,650,450 $314,504 ========== ========== ======== ===============================================================================================================================
*The Fund's fiscal year-end was changed to October 31. The accompanying notes are an integral part of these financial statements. NOTES TO FINANCIAL STATEMENTS T. Rowe Price New Asia Fund / April 30, 1994 (Unaudited) 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. A) Valuation - Equity securities listed or regularly traded on a securities exchange (including NASDAQ) are valued at the last quoted sales price at the time the valuations are made. A security which is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Other equity securities and those listed securities that are not traded on a particular day are valued at a price within the limits of the latest bid and asked prices deemed by the Board of Directors, or by persons delegated by the Board, best to reflect fair value. 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. Short- term debt securities are valued at their cost which, when combined with accrued interest, approximates fair value. 9 NOTES TO FINANCIAL STATEMENTS (CONT'D) For purposes of determining the Fund's net asset value per share, all assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at the mean of the bid and offer prices of such currencies against U.S. dollars quoted by a major bank. Assets and liabilities for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by or under the supervision of the officers of the Fund, as authorized by the Board of Directors. B) Affiliated Companies - Investments in companies 5% or more of whose outstanding voting securities are held by the Fund are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940. C) Currency translation - Foreign currency amounts are translated into U.S. dollars at prevailing exchange rates as follows: assets and liabilities at the rate of exchange at the end of the respective period, purchases and sales of securities and income and expenses at the rate of exchange prevailing on the dates of such transactions. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. D) 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 an 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 which may differ from generally accepted accounting principles. Effective January 1, 1993, the Fund discontinued its practice of equalization. NOTE 2 - FINANCIAL INSTRUMENTS As a part of its investment program, the Fund engages in the following activities, the nature and risk of which are set forth more fully in the Fund's Prospectus and Statement of Additional Information. A) Emerging Markets - The Fund has investments in securities of companies located in emerging markets. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. B) Other - Purchases and sales of portfolio securities, other than short-term and U.S. Government securities, aggregated $1,079,206,000 and $723,343,000. 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. At April 30, 1994, the aggregate cost of investments for federal income tax and financial reporting purposes was $1,882,900,000 and net unrealized appreciation aggregated $65,785,000, of which $175,054,000 related to appreciated investments and $109,269,000 to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The Fund is managed by Rowe Price-Fleming International, Inc. (Price-Fleming) which is owned by T. Rowe Price Associates, Inc. (Price Associates), Robert Fleming Holdings Limited, and Jardine Fleming Holdings Limited under a joint venture agreement. The investment management agreement between the Fund and Price-Fleming (the Manager) provides for an annual investment management fee, computed daily and paid monthly, consisting 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 0.31% for assets in excess of $34 billion. The effective annual Group Fee rate at April 30, 1994, and for the six months then ended was 0.34%. The Fund pays a pro rata portion of the Group Fee 10 based on the ratio of the Fund's net assets to those of the Group. During the six months ended April 30, 1994, the Fund, in the ordinary course of business, paid commissions of $1,685,000 to, and placed security purchase and sale orders aggregating $383,710,000 with, certain affiliates of the Manager in connection with the execution of various portfolio transactions at the direction of Price-Fleming. T. Rowe Price Services, Inc. (TRPS) and Retirement Plan Services, Inc. (RPS) are wholly owned subsidiaries of Price Associates. TRPS provides transfer and dividend disbursing agent functions and shareholder services for all accounts. RPS provides subaccounting and recordkeeping services for certain retirement accounts invested in the Fund. Price Associates, under a separate agreement, calculates the daily share price and maintains the financial records of the Fund. For the six months ended April 30, 1994, the Fund incurred fees totalling approximately $2,760,000 for these services provided by related parties. At April 30, 1994, these investment management and service fees payable were $1,786,000. FINANCIAL HIGHLIGHTS T. Rowe Price New Asia Fund (Unaudited)
For a share outstanding throughout each period ------------------------------------------------------------------------------- From September 28, 1990 Six Months Ten Months Year Ended (Commencement Ended Ended December 31, of Operations) to April 30, October 31, ---------------------- December 31, 1994 1993++ 1992 1991 1990 ------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD............................ $ 19.76 $ 12.68 $ 11.82 $ 10.08 $ 10.00 ---------- ---------- -------- -------- -------- Investment Activities Net investment income.......................... 0.04 0.07 0.20 0.21* 0.09* Net realized and unrealized gain (loss)........ (0.65) 7.01 1.12 1.73 0.07 ---------- ---------- -------- -------- -------- Total from Investment Activities.................. (0.61) 7.08 1.32 1.94 0.16 ---------- ---------- -------- -------- -------- Distributions Net investment income.......................... (0.07) -- (0.20) (0.20) (0.08) Net realized gain.............................. (0.38) -- (0.26) -- -- ---------- ---------- -------- -------- -------- Total Distributions............................... (0.45) -- (0.46) (0.20) (0.08) ---------- ---------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD.................... $ 18.70 $ 19.76 $ 12.68 $ 11.82 $ 10.08 ========== ========== ======== ======== ======== =================================================================================================================================== RATIOS/SUPPLEMENTAL DATA Total Return...................................... (3.3)% 55.8% 11.2% 19.3% 1.6% Ratio of Expenses to Average Net Assets........... 1.32%+ 1.29%+ 1.51% 1.75%* 1.75%+* Ratio of Net Investment Income to Average Net Assets............................. 0.51%+ 1.02%+ 1.64% 1.75% 2.10%+ Portfolio Turnover Rate........................... 78.2%+ 40.4%+ 36.3% 49.0% 3.2%+ Net Assets, End of Period (in thousands).......... $1,954,097 $1,650,450 $314,504 $102,922 $ 10,986 Number of Shareholder Accounts, End of Period..... 172,000 106,000 37,000 14,000 2,000 ===================================================================================================================================
++ The Fund's fiscal year-end was changed to October 31. * Excludes expenses in excess of a 1.75% voluntary expense limitation in effect through December 31, 1992. + Annualized. Note: This table does not reflect the Fund's 2 for 1 split, which occurred on May 27, 1994, after the close of the period covered by this report. 11 GRAPHICS APPENDIX LIST ---------------------- New Asia Fund ------------- Geographical Comparison A pie chart breaks out the percentages of New Asia Fund holdings held in individual countries throughout Asia. SemiAnnual Report ------------------------------------------------------------------------------ For yield, price, last transaction, and current balance, 24 hours, 7 days a week, call: 1-800-638-2587 toll free 625-7676 Baltimore area For assistance with your existing fund account, call: Shareholder Service Center 1-800-225-5132 toll free 625-6500 Baltimore area T. Rowe Price 100 East Pratt Street Baltimore, Maryland 21202 This report is authorized for distri- bution only to shareholders and to others who have received a copy of the prospectus of the T. Rowe Price New Asia Fund. T. Rowe Price Invest With Confidence (R) NAS T. Rowe Price ------------- New Asia Fund April 30, 1994 [ART APPEARS HERE]