0000773485-01-500045.txt : 20011019
0000773485-01-500045.hdr.sgml : 20011019
ACCESSION NUMBER: 0000773485-01-500045
CONFORMED SUBMISSION TYPE: 497K3B
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20011015
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: PRICE T ROWE NEW AMERICA GROWTH FUND
CENTRAL INDEX KEY: 0000773485
STANDARD INDUSTRIAL CLASSIFICATION: []
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 497K3B
SEC ACT: 1933 Act
SEC FILE NUMBER: 002-99122
FILM NUMBER: 1758737
BUSINESS ADDRESS:
STREET 1: 100 E PRATT ST
CITY: BALTIMORE
STATE: MD
ZIP: 21202
BUSINESS PHONE: 4105472000
FORMER COMPANY:
FORMER CONFORMED NAME: PRICE T ROWE COMMON STOCK FUND
DATE OF NAME CHANGE: 19851003
497K3B
1
nag-fundprofile.txt
NEW AMERICA GROWTH FUND, 10/1/01
October 1, 2001
FUND PROFILE
T. ROWE PRICE
New America Growth Fund
A stock fund seeking long-term capital appreciation through investments in
companies believed by T. Rowe Price to be in the fast-growing sectors that
define the "new America."
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICELOGO
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FUND PROFILE
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What is the fund's objective?
To achieve long-term growth of capital by investing primarily in the common
stocks of companies operating in sectors T. Rowe Price believes will be the
fastest growing in the United States.
What is the fund's principal investment strategy?
We invest primarily (at least 65% of total assets) in common stocks of U.S.
companies that operate in those sectors of the economy identified at any
given time by T. Rowe Price as the fastest growing or having the greatest
growth potential. In recent years, the U.S. economy has evolved rapidly,
primarily because of the application of new technologies and scientific
advances. Fast-growing companies can be found across an array of industries
in today's "new America." The choice of industry sectors would reflect such
factors as the overall revenue growth of the component companies and the
sector's contribution to gross domestic product from year to year. In recent
years, for example, such sectors have included technology and
telecommunications, but others may supplement or replace these at any time.
Holdings range from large-cap to small companies. In selecting stocks, we
look for many characteristics, including but not limited to:
. earnings growth rates that generally exceed that of the average company in
the S&P 500 Stock Index;
. favorable company fundamentals, such as a strong balance sheet, sound
business strategy, and promising competitive positioning;
. effective management; and
. stock valuations, such as price/earnings or price/cash flow ratios, that
seem reasonable relative to the company's prospects.
While most assets will be invested in U.S. common stocks, other securities
may also be purchased, including foreign stocks, futures, and options, in
keeping with fund objectives.
The fund may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into more promising opportunities.
Further information about the fund's investments, including a review of
market conditions and fund strategies and their impact on performance, is
available in the annual and semiannual shareholder reports. To obtain free
copies of these documents, call 1-800-638-5660.
What are the main risks of investing in the fund?
The fund may entail above-average risk since growth companies pay few
dividends and are typically more volatile than slower-growing companies with
high dividends. Generally, stocks of companies in rapidly evolving - and
often highly
2
FUND PROFILE
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competitive - industries are subject to significant price swings. Since
investors buy these stocks because of their expected superior earnings
growth, earnings disappointments, even small ones, can result in sharp price
declines. Changes in investor psychology from positive to negative can also
cause growth stocks to lose value because of the high valuations they
typically carry. The level of risk will be increased if the fund has
significant exposure to small-company stocks, which tend to be more volatile
than large-company stocks because of their limited product lines, markets, or
financial resources. In addition, picking long-term winners in the early
stages of developing new industries is very difficult. Promising new fields
tend to attract a great deal of competition and capital investment, and the
increasingly fast pace of technological change can render an established
company's products and services obsolete virtually overnight.
As with all equity funds, this fund's share price can fall because of
weakness in the broad market, a particular industry, or specific holdings.
The market as a whole can decline for many reasons, including adverse
political or economic developments here or abroad, changes in investor
psychology, or heavy institutional selling. The prospects for an industry or
company may deteriorate because of a variety of factors, including
disappointing earnings or changes in the competitive environment. In
addition, our assessment of companies held in the fund may prove incorrect,
resulting in losses or poor performance even in a rising market. Finally, the
fund's investment approach could fall out of favor with the investing public,
resulting in lagging performance versus other types of stock funds.
Foreign stock holdings are subject to the risk that some holdings may lose
value because of declining foreign currencies or adverse political or
economic events overseas. Investments in futures and options, if any, are
subject to additional volatility and potential losses.
As with any mutual fund, there can be no guarantee the fund will achieve its
objective.
. The fund's share price may decline, so when you sell your shares, you may
lose money. An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
How can I tell if the fund is appropriate for me?
Consider your investment goals, your time horizon for achieving them, and
your tolerance for risk. If you seek long-term appreciation and can accept
the potentially higher volatility of growth stocks, the fund could be an
appropriate part of your overall investment strategy. This fund should not
represent your complete investment program or be used for short-term trading
purposes.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
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FUND PROFILE
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. Equity investors should have a long-term investment horizon and be willing
to wait out bear markets.
How has the fund performed in the past?
The bar chart showing calendar year returns and the average annual total
return table indicate risk by illustrating how much returns can differ from
one year to the next and over time. Fund past performance is no guarantee of
future returns.
The fund can also experience short-term performance swings, as shown by the
best and worst calendar quarter returns during the years depicted in the
chart.
LOGO
Calendar Year Total Returns
"91" "92" "93" "94" "95" "96" "97" "98" "99" "00"
-----------------------------------------------------------------------
61.95 9.89 17.44 -7.43 44.31 20.01 21.10 17.89 12.76 -10.53
-----------------------------------------------------------------------
Quarter ended Total return
Best quarter 12/31/98 27.69%
Worst quarter 9/30/98 -21.27%
Table 1 Average Annual Total Returns
Periods ended 09/30/2001
1 year 5 years 10 years
-----------------------------------------------------------------------------
New America Growth Fund -33.86% 1.41% 9.16%
S&P 500 Stock Index -26.62 10.22 12.70
Lipper Multi-Cap Growth Funds -50.15 4.36 9.73
Average
-----------------------------------------------------------------------------
These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
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FUND PROFILE
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What fees or expenses will I pay?
The fund is 100% no load. There are no fees or charges to buy or sell fund
shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
are no 12b-1 fees.
Table 2 Fees and Expenses of the Fund*
Annual fund operating expenses
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------------
Management fee 0.67%/ // /
Other expenses 0.26%
Total annual fund operating expenses 0.93%/ // /
--------------------------------------------------------------------------------------
* Redemption proceeds of less than $5,000 sent by wire are subject to a $5 fee
paid to the fund. Accounts with less than a $2,000 balance (with certain
exceptions) are subject to a $10 fee.
Example. The following table gives you a rough idea of how expense ratios may
translate into dollars and helps you to compare the cost of investing in this
fund with that of other mutual funds. Although your actual costs may be
higher or lower, the table shows how much you would pay if operating expenses
remain the same, you invest $10,000, earn a 5% annual return, and hold the
investment for the following periods and then redeem:
1 year 3 years 5 years 10 years
----------------------------------------------------
$95 $296 $515 $1,143
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Who manages the fund?
The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
Rowe Price and its affiliates manage investments for individual and
institutional accounts. The company offers a comprehensive array of stock,
bond, and money market funds directly to the investing public.
Marc L. Baylin manages the fund day to day and has been chairman of its
Investment Advisory Committee since 2000. He has been a member of the
committee since 1997. He joined T. Rowe Price in 1993 as a research analyst
and has been managing investments since 1997.
Note: The following questions and answers about buying and selling shares and
services do not apply to employer-sponsored retirement plans. If you are a
participant in one of these plans, please call your plan's toll-free number for
additional information.
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FUND PROFILE
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How can I purchase shares?
Fill out the New Account Form and return it with your check in the postpaid
envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
or transfers to minors). The minimum subsequent investment is $100 ($50 for
IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
open an account by bank wire, by exchanging from another T. Rowe Price fund,
or by transferring assets from another financial institution.
How can I sell shares?
You may redeem or sell any portion of your account on any business day.
Simply write to us or call. You can also access your account at any time via
Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
entire family of domestic and international funds. Restrictions may apply in
special circumstances, and some redemption requests need a signature
guarantee.
When will I receive income and capital gain distributions?
The fund distributes income and net capital gains, if any, at year-end. For
regular accounts, income and short-term gains are taxable at ordinary income
rates, and long-term gains are taxable at the capital gains rate.
Distributions are reinvested automatically in additional shares unless you
choose another option, such as receiving a check. Distributions paid to IRAs
and employer-sponsored retirement plans are automatically reinvested.
What services are available?
A wide range, including but not limited to:
. retirement plans for individuals and large and small businesses;
. automated information and transaction services by telephone or computer;
. electronic transfers between fund and bank accounts;
. automatic investing and automatic exchange;
. brokerage services; and
. asset manager accounts.
FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F60-035
T. Rowe Price Investment Services, Inc., Distributor