-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, bTXLt1hwnqLu3KTXjr7XDSu2qQs/hJ+qmx1quYfUNweMl5RLWk1zxMLHNNBw0BVS vhzwzoCtccaeChjsuI4Zrg== 0000950161-94-000019.txt : 19940825 0000950161-94-000019.hdr.sgml : 19940825 ACCESSION NUMBER: 0000950161-94-000019 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940824 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICE T ROWE OTC FUND INC CENTRAL INDEX KEY: 0000075170 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 231622210 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-00696 FILM NUMBER: 94545871 BUSINESS ADDRESS: STREET 1: 100 EAST PRATT ST STREET 2: C/O T ROWE PRICE ASSOCIATES INC CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 2156432510 MAIL ADDRESS: STREET 1: 100 EAST PRATT STRE STREET 2: NULL CITY: BALTIMORE STATE: MD ZIP: 21202 FORMER COMPANY: FORMER CONFORMED NAME: OVER THE COUNTER SECURITIES GROUP INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: OVER THE COUNTER SECURITIES FUND INC DATE OF NAME CHANGE: 19890108 N-30D 1 SEMI-ANNUAL; T. ROWE PRICE OTC FUND Fellow Shareholders While the OTC Fund was off 0.9% for the three months ended June 30, its decline was far less than the 5% and nearly 4% suffered by the unmanaged Nasdaq Composite and Russell 2000, respectively. However, for the second quarter in a row, large-cap stocks as measured by the unmanaged S&P 500 outperformed their smaller-cap peers. Despite a poor six months for small-cap stocks, we still believe we remain in a bull market for this market sector. More on this is in our outlook section. Performance Comparison Periods Ended 6/30/94 3 Months 6 Months OTC Fund -0.9% -4.0% Nasdaq Composite -5.0 -9.1 Russell 2000 -3.9 -6.4 S&P 500 0.4 -3.4 Principal only The second quarter correction hit small-company growth investors particularly hard. During the quarter, the average small-company fund, as measured by Lipper, declined nearly 6%. Hardest hit was the technology sector, which fell nearly 9%. Severe damage, however, was not limited to technology; two other large components of the growth universe also experienced significant losses: health care stocks were off 7.9% and discretionary consumer stocks dropped 8.2%. Fortunately for your Fund, these sectors were substantially underweighted in the portfolio. And, the one Russell 2000 sector that posted a significant positive return, energy, rose 6.6% and was a major emphasis for your Fund. Given 1994's sharp correction, we are now finding small-cap growth stocks compellingly cheap. Indeed, the second quarter's major purchases and sales reflect our "cherry picking" of selected bargains in technology, health care, and consumer growth. Investment Review For the last two years, your portfolio has been significantly underweighted in technology. As these stocks moved into their traditional summer slowdown (i.e., in eight of the previous 10 years, tech stocks underperformed the general indices from May through August), we began purchasing a number of fine growth shares at what we believe were good prices. Additions include Synopsys, a maker of automated software design systems; Xilinx, a semiconductor manufacturer; 3Com, a vendor of hub and router networking products; Intuit, a software firm specializing in PC-based financial software products for the home; and MapInfo, a new software firm offering desktop mapping software used to analyze data in geographic form. Each of these stocks, despite strong company fundamentals, now sells at price/earnings ratios which are significantly discounted relative to their historic and projected growth rates. We also found value in consumer growth shares. For the past several quarters, we've been writing of the bounce in consumer confidence and our desire to invest in well-positioned retailers. The largest purchase in the quarter was Urban Outfitters, a highly successful retailer of fashion forward clothing for "Generation X." Earnings can grow in excess of 20% for several years, in our opinion, and the shares sell at 16 times estimated earnings, reasonable for such high-growth prospects. We also purchased Cy- gne Designs, a private label design and apparel source for major retailers which will benefit the Fund if, as we project, we are on the verge of another favorable cycle for women's apparel. Selling at only 15 times estimated earnings and growing at an annual rate of 25%, we found the shares another good value. On the sale side, two mergers led to significant proceeds coming into the OTC Fund from existing holdings. We've previously written of the Cragin Financial merger with the Dutch financial firm ABN Holdings. This merger was consummated in June and led to our largest sale in the quarter. Moreover, Wheatley TXT, a recent purchase, also agreed to be acquired by another energy services firm, Dresser Industries. As Wheatley's shares reached its acquisition value, we decided to sell. Other significant sales include the HMO Pacificare, a stock which we believe reached full value over the near term at almost 21 times projected earnings, and Stewart Enterprises, the New Orleans-based funeral provider whose stock also appeared fully priced. Finally, we had investments that didn't work out too well. In an earlier report, we wrote of the major commitment made to the tobacco leaf merchant, Monk-Austin. While Monk remains a fine firm, we underestimated two major factors. First, the severe glut of tobacco on world markets continues. We had previously anticipated that leaf would come into closer demand and supply balance by the summer. It now appears this may not occur until at least late 1995. Second, the recent FDA and Congressional attacks on the tobacco industry put pressure on price/earnings (P/E) multiples in the group. While we could have suffered through one of these events and held a significant position, this "double whammy" proved too much for our patience. We believe Monk-Austin will prosper as the leaf glut ends. Moreover, Monk, as an international company, is far from dependent on the U.S. market. Consequently, we have retained a modest position and will look to rebuilding the holding as tobacco supply and demand reach equilibrium. Outlook Is the party over in small-company shares? We believe the answer is no. While small-cap stocks are now in their fourth year of market leadership, outperforming large-caps since October of 1990, this performance hasn't occurred in a straight line. Sharp corrections in small-cap growth stocks occurred in early 1992, 1993, and now in 1994. These mid-cycle corrections are common in the multiyear "up cycles" for small-cap shares. Consequently, we see no reason to declare an end to the current bull market. Despite the market's correction and rising interest rates, we see no signs of the next U.S. recession. Indeed, economic growth is now re-accelerating, and our "late cycle" capital goods stocks are seeing improving fundamentals. As we move toward the earnings-driven phase of this bull market, we believe small-cap stocks will once again outperform. As we've written previously, these stocks remain attractive on a relative basis versus larger-cap stocks. The P/E premium for small-caps, which typically peaks at about 2.0, remains much closer to 1.0. We believe these stocks trade in similar patterns from cycle to cycle. Greed still exists on Wall Street, and stocks typically peak when investors have bid up valuations in excess of existing levels. Keep the faith, and we appreciate your patience. Respectfully submitted, (signature) Greg McCrickard President and Chairman of the Investment Advisory Committee July 25, 1994 Twenty-Five Largest Holdings June 30, 1994 Percent of Company Net Assets Selective Insurance 2.3 % Collective Bancorp. 1.8 Enterra 1.7 Werner Enterprises 1.5 Pittston Minerals 1.5 Glacier Bancorp. 1.4 Maxim Integrated Products 1.4 M.S. Carriers 1.4 Insituform Technologies 1.3 Shorewood Packaging 1.3 United Financial of South Carolina 1.3 SEI 1.3 Flair 1.2 Analogic 1.2 CSS Industries 1.2 Mercantile Bancorporation 1.2 Tuboscope Vetco 1.2 Holophone 1.1 Autodesk 1.1 Brookstone 1.0 Oceaneering International 1.0 AMTROL 1.0 Cellular 1.0 Intertrans 1.0 Isomedix 1.0 Total 32.4% Major Portfolio Changes Three Months Ended June 30, 1994 Ten Largest Purchases Cost (000) Urban Outfitters $1,288 Synopsys 1,157 Xilinx 1,131 Cygne Designs 1,015 3Com 1,007 Intuit 929 Lincare 884 DT Industries 743 MapInfo 531 Autodesk 514 Ten Largest Sales Proceeds (000) Cragin Financial $2,394 Swift Transportation 1,700 Pacificare Health System 1,437 Advantage Health 1,400 Watts Industries 1,190 Wheatley TXT 1,113 Monk-Austin 1,070 BGS Systems 975 Stewart Enterprises 956 Linear Technology 896 Position added Position eliminated Statement of Net Assets (Value in thousands) T. Rowe Price OTC Fund/June 30, 1994 (Unaudited) Common Stocks & Warrants _ 88.5% FINANCIAL _ 14.5% Value BANK & TRUST _ 8.3% 30,000 shs. Bell Bancorp $ 1,616 150,000 Collective Bancorp 3,281 50,000 First Security 1,456 146,410 Glacier Bancorp 2,672 61,500 Mercantile Bancorporation 2,160 55,000 Premier Bancorp 963 180,000 United Financial of South Carolina 2,363 52,500 ValliCorp Holdings 768 15,279 INSURANCE _ 6.2% 35,000 Foremost 1,098 70,000 Harleysville Group 1,417 103,000 Intercargo 1,043 156,200 Pac Rim Holding 381 171,400 Selective Insurance 4,328 60,400 Transnational Re 1,495 42,500 W. R. Berkley 1,652 11,414 Total Financial 26,693 CONSUMER NONDURABLES _ 9.9% BEVERAGES _ 0.2% 79,100 Chalone 455 FOOD PROCESSING _ 2.4% 290,000 Foodmaker 1,631 164 Makepeace 902 60,500 Seneca Foods 1,339 25,000 Thorn Apple Valley 587 4,459 HOSPITAL SUPPLIES/HOSPITAL MANAGEMENT _ 1.3% 40,000 Lincare 785 30,000 Quorum Health Group 529 35,000 St. Jude Medical 1,128 2,442 PHARMACEUTICALS _ 1.1% 45,000 Immunex 568 30,000 Life Technologies 559 25,000 Marsam Pharmaceuticals 266 47,500 Zenith Laboratories 647 2,040 HEALTH CARE SERVICES _ 1.3% 9,000 shs. Intergroup Healthcare $ 401 51,500 Mariner Health 991 58,700 Multicare 998 2,390 MISCELLANEOUS CONSUMER PRODUCTS _ 3.6% 91,500 Boston Acoustics 1,315 38,025 CIMCO 219 34,500 Crown City Plating 224 134,662 Culp 1,212 55,600 Cygne Designs 1,209 33,400 Liqui-Box 1,186 90,800 Monk-Austin 1,181 6,546 Total Consumer Nondurables 18,332 CONSUMER SERVICES _ 8.9% GENERAL MERCHANDISERS _ 1.9% 123,500 Brookstone 1,852 100,000 Carson Pirie Scott 1,744 3,596 SPECIALTY MERCHANDISERS _ 3.7% 50,000 Charming Shoppes 463 135,000 CSS Industries 2,177 51,200 Shoe Carnival 499 26,400 Tommy Hilfiger 1,049 60,000 Urban Outfitters 1,215 161,200 Vans 796 40,000 Wolohan Lumber 560 6,759 ENTERTAINMENT & LEISURE _ 1.8% 35,000 Carmike Cinemas (Class A) 639 100,000 CKE Restaurants 850 25,000 Hollywood Park 578 200,000 TPI Enterprises 1,187 3,254 MEDIA & COMMUNICATIONS _ 1.5% 48,978 Cowles Media 1,139 78,000 Gray Communications Systems 1,150 30,000 Mobile Telecommunication Technologies 544 2,833 Total Consumer Services 16,442 CONSUMER CYCLICALS _ 3.9% AUTOMOBILES & RELATED _ 0.7% 7,756 shs. Adrian Steel $ 1,346 BUILDING & REAL ESTATE _ 0.3% 13,384 First Republic of America 522 MISCELLANEOUS CONSUMER DURABLES _ 2.9% 20,970 wts. Craftmatic Contour, 12/31/02 0 55,000 shs. Juno Lighting 1,059 157,500 LADD Furniture 1,063 60,000 Scotts (Class A) 982 73,500 Vallen 854 150,000 Winston Furniture 1,294 5,252 Total Consumer Cyclicals 7,120 TECHNOLOGY _ 8.7% ELECTRONIC COMPONENTS _ 4.6% 138,213 Analogic 2,246 60,000 Lattice Semiconductor 1,125 40,000 Linear Technology 1,755 50,000 Maxim Integrated Products 2,594 25,000 Xilinx 856 8,576 INFORMATION PROCESSING _ 0.9% 80,000 DH Technology 1,610 TELECOMMUNICATIONS _ 2.4% 20,000 3Com 1,029 55,000 Cellular Communications of Puerto Rico 1,361 100,000 EIS International 994 30,000 LCI International 971 4,355 AEROSPACE & DEFENSE _ 0.8% 18,000 Woodward Governor 1,530 Total Technology' 16,071 CAPITAL EQUIPMENT _ 6.8% ELECTRICAL EQUIPMENT _ 1.1% 115,900 Holophane 2,072 MACHINERY _ 5.7% 101,000 AMTROL 1,818 13,000 Central Sprinkler 140 55,000 DT Industries 880 120,000 Flair 2,295 50,000 Greenfield Industries 962 37,290 Harding Brothers (Class A) 923 126,600 Hurco Companies 301 17,450 shs. Laser Alignment $ 366 55,000 Lindsay Manufacturing 1,616 50,000 Watts Industries (Class A) 1,175 10,476 Total Capital Equipment 12,548 BUSINESS SERVICES & TRANSPORTATION _ 21.6% COMPUTER SERVICE & SOFTWARE _ 4.8% 40,000 Autodesk 1,975 50,000 HBO 1,269 30,000 Intuit 1,001 50,000 MapInfo 1,006 53,000 Ross Systems 189 127,400 SEI 2,325 30,400 Synopsys 1,144 8,909 ENVIRONMENTAL _ 2.8% 164,250 EMCON 1,242 88,608 Heidemij 897 135,000 Mid-American Waste Systems 760 130,000 TRC 1,300 50,000 United Waste Systems 925 5,124 TRANSPORTATION SERVICES _ 7.0% 60,000 Expeditors International of Washington 1,050 59,800 FRP Properties 912 50,000 Heartland Express 1,500 62,250 International Shipholding 1,245 140,000 Intertrans 1,785 130,000 M.S. Carriers 2,584 20,000 Swift Transportation 645 31,400 TRISM 459 101,000 Werner Enterprises 2,841 13,021 MISCELLANEOUS BUSINESS SERVICES _ 6.3% 40,000 Gilbert Associates (Class A) 605 184,200 Insituform Technologies 2,475 105,000 Isomedix 1,772 100,000 McGrath RentCorp 1,662 110,000 MFRI 839 126,000 Shorewood Packaging 2,378 40,000 Unitog 1,120 140,000 UTILX 744 11,595 RAILROADS _ 0.7% 33,400 North Carolina Railroad 1,294 Total Business Services & Transportation 39,943 ENERGY _ 7.5% ENERGY SERVICES _ 6.8% 115,000 shs. Atwood Oceanics $ 1,495 151,500 Enterra 3,181 50,000 Garnet Resources 206 10,000 Geophysique (FRF) 1,076 101,200 Moorco International 1,607 130,000 Oceaneering International 1,820 61,500 Petroleum Helicopters 676 33,500 Petroleum Helicopters (non-voting) 369 310,000 Tuboscope Vetco 2,151 12,581 INTEGRATED PETROLEUM-DOMESTIC _ 0.7% 166,000 Benton Oil and Gas 1,224 Total Energy 13,805 PROCESS INDUSTRIES _ 1.6% DIVERSIFIED CHEMICALS _ 0.9% 103,616 Aceto 1,606 SPECIALTY CHEMICALS _ 0.7% 50,000 A. Schulman 1,287 Total Process Industries 2,893 BASIC MATERIALS _ 3.3% METALS _ 0.4% 50,400 Webco Industries 762 MINING _ 2.9% 9,295 Coal Creek 1,046 150,000 Pittston Minerals 2,775 15,728 Rochester & Pittsburgh 570 164,000 TVX Gold 943 5,334 Total Basic Materials 6,096 Miscellaneous _ 1.8% 3,260 Total Common Stocks (Cost _ $133,177) 163,203 Miscellaneous Convertible Preferred _ 0.4% (Cost _ $812) 815 Convertible Bonds _ 1.8% $ 1,500,000 American City Business Journals, 6.00%, 12/31/11 1,538 2,000,000 Cellular, 6.75%, 7/15/09 1,810 Total Convertible Bonds (Cost _ $2,525) 3,348 Short-Term Investments _ 9.5% COMMERCIAL PAPER _ 8.4% $ 2,352,000 ABN AMRO Bank N.V., 4.45%, 9/16/94 $ 2,326 3,000,000 Daimler-Benz North America,4.30%,7/19/94 2,990 5,184,000 Harvard University, 4.30%, 7/1/94 5,183 5,000,000 National Australia Funding (Delaware), 4.27 - 4.41%, 7/25 - 8/1/94 4,968 15,467 MEDIUM-TERM NOTES _ 1.1% 1,000,000 Citicorp, VR, 4.675%, 12/7/94 999 1,000,000 Morgan Stanley Group, VR,4.713%,7/13/95 1,001 2,000 Total Short-Term Investments (Cost _ $17,467) 17,467 Total Investments in Securities _ 100.2% (Cost _ $153,981) 184,833 Other Assets Less Liabilities _ (0.2)% (297) Net Assets Consisting of: Accumulated net investment income - net of distributions $ 96 Accumulated realized gains/losses - net of distributions 20,910 Net unrealized appreciation of investments 30,852 Paid-in-capital applicable to 12,482,721 shares of $0.50 par value capital stock outstanding; 200,000,000 shares authorized 132,678 Net Assets - 100.0% $ 184,536 Net Asset Value Per Share $ 14.78 Non-income producing Affiliated company VR Variable rate (FRF) French franc denominated The accompanying notes are an integral part of these financial statements. Statement of Operations T. Rowe Price OTC Fund / Six Months Ended June 30, 1994 (Unaudited) Amounts in Thousands INVESTMENT INCOME Income Dividends (including $87,000 from affiliated issues) $ 865 Interest 358 Total income $ 1,223 Expenses Investment management fees 776 Shareholder servicing fees & expenses 207 Custodian and accounting fees & expenses 74 Prospectus & shareholder reports 24 Registration fees & expenses 17 Legal & auditing fees 17 Directors' fees & expenses 6 Proxy & annual meeting 5 Miscellaneous 1 Total expenses 1,127 Net investment income 96 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain 15,249 Change in net unrealized appreciation or depreciation (23,057) Net loss on investments (7,808) DECREASE IN NET ASSETS FROM OPERATIONS $ (7,712) The accompanying notes are an integral part of these financial statements. Statement of Changes in Net Assets T. Rowe Price OTC Fund (Unaudited) Six Months Ended Year Ended June 30,1994 Dec. 31, 1993 Amounts in Thousands INCREASE (DECREASE) IN NET ASSETS Operations Net investment income $ 96 $ (16) Net realized gain on investments 15,249 24,877 Change in net unrealized appreciation or depreciation of investments (23,057) 7,769 Increase (decrease) in net assets from operations (7,712) 32,630 Distributions to shareholders Net realized gain on investments _ (19,192) Capital share transactions Sold 822 and 2,717 shares 12,553 41,461 Distributions reinvested of 0 and 1,166 shares _ 17,461 Redeemed 1,636 and 3,589 shares (24,914) (54,589) Increase (decrease) in net assets from capital share transactions (12,361) 4,333 Total increase (decrease) (20,073) 17,771 NET ASSETS Beginning of period 204,609 186,838 End of period $184,536 $204,609 The accompanying notes are an integral part of these financial statements. Notes to Financial Statements T. Rowe Price OTC Fund / June 30, 1994 (Unaudited) Note 1 - Significant Accounting Policies T. Rowe Price OTC Fund (the Fund) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. A) Valuation - Equity securities listed or regularly traded on a securities exchange are valued at the last quoted sales price on the day 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. Listed securities that are not traded on a particular day and securities regularly traded in the over-the-counter market are valued at the mean of the latest bid and asked prices. 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. 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. Note 2 - Portfolio Transactions Purchases and sales of portfolio securities, other than short-term and U.S. Government securities, aggregated $31,697,000 and $49,977,000, respectively, for the six months ended June 30, 1994. 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 June 30, 1994, the aggregate cost of investments for federal income tax and financial reporting purposes was $153,981,000 and net unrealized appreciation aggregated $30,852,000, of which $41,936,000 related to appreciated investments and $11,084,000 to depreciated investments. Note 4 - Related Party Transactions The investment management agreement between the Fund and T. Rowe Price Associates, Inc. (the Manager) provides for an annual investment management fee, computed daily and paid monthly, consisting of an Individual Fund Fee equal to 0.45% 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 Rowe Price-Fleming International, Inc. (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 June 30, 1994 and for the six months then ended was 0.34%. The Fund pays a pro rata portion of the Group Fee based on the ratio of the Fund's net assets to those of the Group. T. Rowe Price Services, Inc. (TRPS) and Retirement Plan Services, Inc. (RPS) are wholly owned subsidiaries of the Manager. 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. The Manager, under a separate agreement, calculates the daily share price and maintains the financial records of the Fund. For the six months ended June 30, 1994, the Fund incurred fees totalling approximately $202,000 for these services provided by related parties. At June 30, 1994, these investment management and service fees payable were $182,000.
Financial Highlights T. Rowe Price OTC Fund (Unaudited) For a share outstanding throughout each period Six Months Ended Year Ended December 31, June 30, 1994 1993 1992 1991 1990 1989 NET ASSET VALUE, BEGINNING OF PERIOD $15.39 $14.37 $16.86 $12.72 $16.23 $14.14 Investment Activities Net investment income 0.01 _ 0.02 0.07 0.11 0.09 Net realized and unrealized gain (loss) (0.62) 2.60 2.20 4.84 (3.43) 2.61 Total from Investment Activities (0.61) 2.60 2.22 4.91 (3.32) 2.70 Distributions Net investment income _ _ (0.07) (0.09) (0.09) (0.13) Net realized gain _ (1.58) (4.64) (0.68) (0.10) (0.48) Total Distributions _ (1.58) (4.71) (0.77) (0.19) (0.61) NET ASSET VALUE, END OF PERIOD $14.78 $15.39 $14.37 $16.86 $12.72 $16.23 RATIOS / SUPPLEMENTAL DATA Total Return (4.0)% 18.4% 13.9% 38.6% (20.5)% 19.1% Ratio of Expenses to Average Net Assets 1.15% 1.20% 1.32% 1.34% 1.47% 1.45% Ratio of Net Investment Income to Average Net Assets 0.10% (0.01)% 0.03% 0.48% 0.73% 0.63% Portfolio Turnover Rate 34.7% 40.8% 30.7% 31.2% 34.8% 33.10% Net Assets, End of Period (in thousands) $184,536 $204,609 $186,838 $266,584 $215,299 $315,939 Annualized.
Shareholder Services To help shareholders monitor their current investments and make decisions that accurately reflect their financial goals, T. Rowe Price offers a wide variety of information and services _ at no extra cost. Knowledgeable Service Representatives By Phone _ Shareholder Service Representatives are available from 8:00 a.m. to 10:00 p.m., Monday - Friday, and weekends from 9:00 a.m. to 5:00 p.m E.T. Call 1-800-225-5132 to speak directly with a representative who will be able to assist you with your accounts. In Person _ Visit one of our investor center locations to meet with a representative who can help you with your accounts. While there, you can drop off applications or obtain prospec - tuses and other literature. Automated 24-Hour Services Tele*Access(R) (1-800-638-2587) provides information such as account balance, date and amount of your last transaction, latest dividend payment, and fund prices and yields. Additionally, you have the ability to request prospectuses, statements, account and tax forms, reorder checks, and initiate purchase, redemption, and exchange orders for identically registered accounts. PC*Access(R) provides the same information as Tele*Access, but on a personal computer via dial-up modem. Account Services Checking _ Write checks for $500 or more on any money market and most bond fund accounts. Automatic Investing _ Build your account over time by investing directly from your bank account or paycheck with Automatic Asset Builder. Additionally, Automatic Exchange enables you to set up systematic investments from one fund account into another, such as from a money fund into a stock fund. A low, $50 minimum makes it easy to get started. Automatic Withdrawal _ If you need money from your fund account on a regular basis, you can establish scheduled, automatic redemptions. Dividend and Capital Gains Payment Options _ Reinvest all or some of your distributions, or take them in cash. We give you maximum flexibility and convenience. Investment Information Combined Statement _ A comprehensive overview of your T. Rowe Price accounts. The summary page gives your earnings by tax category, provides total portfolio value, and lists your investments by type _ stock, bond, and money market. Detail pages itemize account transactions by fund. Quarterly Shareholder Reports _ Portfolio managers review the performance of the funds in plain language and discuss T. Rowe Price's economic outlook. The T. Rowe Price Report _ A quarterly newsletter with relevant articles on market trends, personal financial planning, and T. Rowe Price's economic perspective. Insights _ A library of information that includes reports on mutual fund tax issues, investment strategies, and financial markets. Detailed Investment Guides _ Our widely acclaimed Asset Mix Worksheet, College Planning Kit, Retirees Financial Guide, Retirement Planning Kit (also available on disk for PC use), and Guide to Risk-Adjusted Performance can help you determine and reach your investment goals. Discount Brokerage You can trade stocks, bonds, options, precious metals, and other securities at a substantial savings over regular commission rates. Call a Shareholder Service Representative for more information. -----END PRIVACY-ENHANCED MESSAGE-----