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<TYPE>N-30D
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<FILENAME>nag50020.txt
<DESCRIPTION>T. ROWE PRICE NEW AMERICA GROWTH FUND
<TEXT>
Annual Report
NEW AMERICA GROWTH FUND
DECEMBER 31, 2002
T. ROWE PRICE(R)
<PAGE>
REPORT HIGHLIGHTS
NEW AMERICA GROWTH FUND
o The major stock indexes finished in negative territory for the third year
in a row amid concerns about the struggling economy, corporate accounting
scandals, and rising geopolitical concerns.
o The fund outperformed the S&P 500 and the Lipper index of similar funds
during the last six months.
o We added a number of new holdings as the market's gyrations during the
second half of the year offered many opportunities.
o We enter 2003 with a portfolio of companies that have exciting growth
prospects and the financial strength to flourish in good times, but also
weather the bad.
REPORTS ON THE WEB
SIGN UP FOR OUR E-MAIL PROGRAM, AND YOU CAN BEGIN TO RECEIVE UPDATED FUND
REPORTS AND PROSPECTUSES ONLINE RATHER THAN THROUGH THE MAIL. LOG ON TO YOUR
ACCOUNT AT WWW.TROWEPRICE.COM FOR MORE INFORMATION.
<PAGE>
FELLOW SHAREHOLDERS
Stocks fell for a third consecutive year as the bear market, which began in
2000, roared through 2002. Losses suffered in the past year placed investors at
the doorstep of history, as the Dow Jones Industrial Average posted its worst
loss since 1974. Last year's losses were not due to any single event. Instead,
numerous financial scandals, a sluggish economy, continued fears over terrorism,
and expectations of a war with Iraq left many investors fearful and skittish
about owning stocks.
PERFORMANCE COMPARISON
Periods Ended 12/31/02 6 Months 12 Months
New America Growth Fund -9.89% -28.54%
................................................................................
S&P 500 Stock Index -10.30 -22.10
................................................................................
Lipper Multi-Cap Growth
Funds Index -12.13 -29.82
................................................................................
The New America Growth Fund's -28.54% 12-month return was less severe than
similar growth-oriented funds, as measured by the Lipper Multi-Cap Growth Funds
Index, which posted a -29.82% result. However, we underperformed the Standard &
Poor's 500 Index's -22.10% result largely because of our focus on growth stocks.
The broad S&P benchmark has a higher weighting in value oriented stocks,
and value outpaced growth for the year. For the six-month period since June, New
America Growth's -9.89% was modestly better than the S&P 500 and Lipper index,
which returned -10.30% and -12.13%, respectively.
MARKET ENVIRONMENT
Stocks were volatile and lower in 2002, as the sluggish economy kept
earnings depressed. Valuations were impacted by high-profile scandals at
companies such as WorldCom and Enron and fear related to war and terrorism. The
second and third quarters were particularly difficult, with both periods posting
double-digit declines. Despite some weakness in December, stocks rebounded from
depressed levels in the fourth quarter. Several factors encouraged renewed
interest in equities, such as improving valuations, paltry bond and money market
yields, and signs of improving earnings at some corporations.
<PAGE>
GROWTH VS. VALUE
3 Years 3 Years
Periods Ended 12/31/02 1 Year Cumulative Annualized
--------------------------------------------------------------------------------
Russell 1000 Growth Index -27.88% -55.48% -23.64%
Russell 1000 Value Index -15.52 -14.65 -5.14
Russell Midcap Growth Index -27.41 -48.84 -20.02
Russell Midcap Value Index -9.64 10.19 3.29
Russell 2000 Growth Index -30.26 -50.90 -21.11
Russell 2000 Value Index -11.43 24.05 7.45
The past year brought more of the same trend that has prevailed for the
last three years--growth stocks underperformed value stocks. The returns
disparity is massive and apparent across all market caps for the past 12 and 36
months. Among large stocks, the Russell 1000 Growth Index fell nearly 28% in
2002 versus a 15.5% drop in the Russell 1000 Value Index; over three years, the
comparison is -23.6% annu-alized for large-cap growth versus -5.1% annualized
for large value. Similarly, the Russell Midcap Growth Index fell 27.4% in 2002
versus a 9.6% drop in the Russell Midcap Value Index; over three years, the
comparison is -20.0% annualized for growth versus a gain of 3.3% annualized for
value. Across small-caps, the disparity is cavernous with the Russell 2000
Growth Index plunging more than 30% while its value counterpart lost 11.4%; over
three years the disparity is magnified: the -21.1% annualized result for
small-growth shares pales next to value's 7.5% average annualized gain.
Granted, the outperformance of value stocks over the past three years was a
reversal of the late 1990s when growth significantly outperformed. It is fairly
common for one style to outperform the other over a multi-year period, only to
reverse in the following years, as noted in the chart on the next page. We are
optimistic that the future holds another period of outperformance for growth,
which should benefit your fund.
PORTFOLIO REVIEW
For the 12 months ended December 31, most sectors fell: consumer staples,
energy, and financials held up the best, while technology, telecom, and
utilities were hit the hardest. Your fund's focus on faster- growing companies
means that we had little or no exposure to slower growth
<PAGE>
The following table was depicted as a bar graph in the printed material.
GROWTH VS. VALUE - RUSSELL 1000
Value 12/80 12/90 12/95 12/00 12/02
3.36 15.16 7.82 -1.18 -21.37 -12.36
6.69 4.42 15.17 -1.51 -42.99
8.41 -2.2 4.58 3.18 -46.51
16.96 -10.81 9.87 3.45 -36.73
-12.57 16.72 1.48 -14.83
-9.44 2.47 -0.6 -6.38
-4.07 -2.25 -1.85 -17.54
-1.5 -1.28 -6.02 -5.56
0.42 -8.59 -4.69
6.49 -13.66 2.29
9.1 -12.68 2.56
-2.07 -19.37 7.51
-12.3 -15.2 23.08
-17.98 -4.72 23.07
-14.7 -1.88 10.9
-13.76 6.51 16.13
-11.05 4.6 13.27
-2.36 6.32 27.79
-9.41 10.02 34.58
-4.64 4.44 14.51
sectors such as consumer staples, financials, telecom, and utilities than the
S&P 500's weighting. Instead, we favor companies in sectors that hold
higher-growth prospects found in business services, consumer discretionary
(including media and retail), health care, and technology.
The fund's three biggest contributors over the past 12 months were APOLLO
GROUP, WELLPOINT HEALTH NETWORKS, and EXPEDIA. Longtime holding Apollo Group is
the largest accredited private university in the United States, with a major
presence in both physical campuses and online. In 2002, the company consistently
expanded its enrollment the key metric underlying revenue growth) and earnings
beyond expectations. Well managed and boasting a strong balance sheet, Apollo
remains a core holding. WellPoint Health Networks is one of the country's
largest managed health care companies. Solid earnings growth, a reasonable
valuation, and the benefit of positive sector rotation earlier in the year
contributed to WellPoint's gains.
We are pleased by how quickly Expedia--a new stock in the fund this
year--has contributed to our results, as it was our third-best stock for the
past 12 months and our top contributor over the past six months. Expedia sells
plane tickets, hotel rooms, and vacation packages to consumers over the Internet
and is the largest online travel agent in the country. The purchase of
travel-related services is a huge market, and we believe the migration from
traditional travel agents to online agents is only in its infancy. The company's
<PAGE>
technology advantage has enabled it to seize the leadership spot and continue to
take market share. With its excellent profitability and cash-rich balance sheet,
it's the furthest thing from the popular conception of an Internet stock. We
continue to own Expedia on the basis of its reasonable valuation and its
prospects for above-average growth in both the leisure and corporate travel
markets over the next several years.
SECTOR DIVERSIFICATION
12/31/01 6/30/02 12/31/02
Consumer Discretionary 23% 23% 18%
Consumer Staples 1 2 2
Energy 3 4 4
Financials 11 13 14
Health Care 16 21 20
Industrials and
Business Services 12 15 18
Information Technology 23 18 20
Materials 0 0 0
Reserves 7 3 2
Telecommunication
Services 4 1 2
Utilities 0 0 0
Total 100% 100% 100%
In addition to Expedia, our top contributors since June were VODAFONE,
FOREST LABORATORIES, and SYSCO. Vodafone is one of the world's largest and most
diversified wireless telecom service providers. Following several tough years,
its shares bounced back in the second half. We think the market has begun to
recognize the company's solid assets (Vodafone is #1 or #2 in most of its
markets), strong balance sheet, and attractive valuation. Forest is a mid-size
pharmaceutical company with a strong anti-depressant franchise. Good sales of
its key drug Celexa helped the company post outstanding earnings and powered the
stock in 2002. Sysco is the largest foodservice distributor in North America.
Sysco has a 30-year history of producing outstanding financial results, and 2002
was no different.
The fund's largest performance detractor for the 12-month period was
WESTERN WIRELESS. The wireless service market in the U.S. proved to be more
challenging than we expected, as subscriber growth slowed materially, and
<PAGE>
vercapacity and competition ate away at profits. The firm's weakening balance
sheet was the last straw for us, and we eliminated the stock earlier in the
year. The fund's second-largest detractor over the past year was AOL TIME
WARNER. The shares were hurt by eroding fundamentals at AOL classic (the
Internet services division) and declining advertising revenues. We trimmed our
exposure to this stock in the second half and may continue to do so in 2003.
Longtime holding CONCORD EFS, the dominant provider of debit card and ATM
processing through its STAR and MAC Networks, was the portfolio's largest
detractor for the second half and third-biggest detractor for the year. The
shares fell after the company reported disappointing third-quarter earnings.
However, we like the fundamentals of the rapidly growing debit card market and
believe Concord is uniquely positioned to take advantage of this growth, given
its 50%-plus market share and its strong balance sheet. We viewed the sell-off
as an opportunity to add to our position at a more attractive valuation.
Similarly, investors punished the shares of LABORATORY CORPORATION OF
AMERICA, our second-biggest detractor since June, for missing its third-quarter
earnings forecast. Retailers HOME DEPOT and TARGET were the third- and
fourth-biggest detractors, respectively, for the six months. Although we were
reducing our Home Depot position in advance of the company's disappointing
fourth-quarter preannouncement, we did not sell the stock aggressively enough to
entirely avoid the sharp sell-off. Target, like most other retailers, posted
below-forecast holiday sales. Combined with concerns over its foray into
consumer credit, the stock was weak in the latter half of the year. We still
hold a significant position in Target because we like its growth potential and
believe the current valuation encompasses many of the risks inherent in owning
the stock.
Significant new purchases over the past year included FISERV, the country's
largest outsourced-data processor for credit unions and regional banks;
UNIVISION COMMUNICATIONS, the largest Hispanic-focused media company in the
U.S.; and Concord EFS, as mentioned above. Significant sales during the past
year included Apollo Group and WellPoint (both at significant gains) and FREDDIE
MAC.
<PAGE>
INVESTMENT STRATEGY
Given the extraordinary market conditions and losses experienced by
investors over the past three years, I'd like to review our investment strategy
in more detail and share some examples of how this strategy works in practice.
Our strategy is deeply rooted in bottom-up, fundamental analysis. We seek
to own the best growth companies in America's fastest-growing industries and
across the entire market-cap spectrum. Our investments focus on companies that
address large and growing market opportunities. We look for superior business
models and strong management teams that are able not only to grow with their
respective market but also to take market share and deliver growth rates above
their respective market rates. Additionally, we are laser focused on profitable
companies that have strong cash flows, which can help confirm the quality of
their reported profits. We also insist on owning companies that feature strong
balance sheets, as these companies have the best chance of seizing growth
opportunities in a better environment but also have staying power through
downturns. Finally, we constantly monitor our holdings' fundamentals and
valuations to ensure that we are taking a prudent, but not excessive, level of
risk.
New America Growth's second-largest holding is FIRST DATA (FDC), a $27
billion company and the nation's largest processor of credit and debit card
payments. Last year, U.S. consumers spent over $5 trillion on goods and
services, but only about 30% of these purchases were transacted with credit and
debit cards. The balance was purchased with cash and checks. This $5 trillion
"market" should grow in line with the economy, and we expect debit and credit
card use to grow at an even faster rate at the expense of cash and checkwriting.
First Data also owns Western Union, the world's largest money transfer company.
This business is growing faster than the card-payment business even though the
company has only scratched the surface in large potential markets for money
transfers such as China and India.
Because card processing is a "scale" business, and because worldwide money
transfers require a presence in almost every corner of the world, there is a
tremendous advantage to holding the number one market share in each business, as
unit costs are lower and entry barriers are higher. This enables FDC to maintain
<PAGE>
and incrementally grow its already large market share while maintaining well
above-average profitability. Importantly, the company also generates strong free
cash flow, which speaks to the quality of its profits, and enables FDC to
maintain a very strong balance sheet.
All told, we believe First Data's earnings can grow 15% per year over the
next few years, even without a pickup in the economy. In our view, FDC's shares
are undervalued by about 25%, and based on the company's aggressive stock
repurchases, First Data's top-flight management team agrees.
Another example of how our strategy works in practice is CHOICEPOINT. This
$3.5 billion company specializes in helping companies and individuals manage and
reduce risk. The business we are most excited about is called Workplace
Solutions, which sells background-check data to businesses, the government, and
consumers. Demand for background checks on potential or existing employees,
vendors, customers, and service providers--has risen substantially over the past
year-and-a-half. ChoicePoint has been a leader in providing this type of
information for years and is in prime position to benefit from rising demand.
The company has extremely high profit margins, generates strong cash flows, has
a terrific balance sheet, and is superbly managed. We expect profits to rise
roughly 20% per year over the next few years. When the stock trended lower this
summer, we added significantly to our position. As long as the fundamentals
remain solid and the valuation reasonable, we expect to hold this name in the
portfolio for quite some time.
OUTLOOK
While we are certainly glad to put 2002 behind us, the turn of the calendar
is not enough to lift several important uncertainties, including the potential
war with Iraq and the ongoing sluggishness in the economy. However, we are
optimistic on several fronts. First, the corporate shenanigans that plagued
markets last year should almost certainly lessen in 2003, as business leaders
understand that they are under the scrutiny not only of investors, but also
those who carry handcuffs. Second, sluggish as it is, the U.S. economy should
continue to benefit from low interest rates and low inflation, while President
Bush's proposed tax cuts could provide a further stimulus later this year.
Third, valuations have become more reasonable, especially for growth stocks.
<PAGE>
I am confident that our disciplined investment process will serve us well.
As portfolio manager of the New America Growth Fund, I'm extremely fortunate to
work with our talented group of in-house research analysts, who I believe are
the best in our business. We enter 2003 with a portfolio of companies that have
exciting growth prospects and the financial strength to flourish in good times,
but also weather the bad. I believe the prospects for your fund are promising,
and I look forward to updating you on our progress at midyear.
Respectfully submitted,
/s/
Joseph M. Milano
Executive vice president and chairman of the fund's Investment Advisory
Committee
January 14, 2003
The committee chairman has day-to-day responsibility for managing the portfolio
and works with committee members in developing and executing the fund's
investment program
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
PORTFOLIO HIGHLIGHTS
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
12/31/02
--------------------------------------------------------------------------------
Microsoft 3.5%
First Data 3.5
ChoicePoint 2.8
Omnicare 2.7
Cisco Systems 2.7
................................................................................
Concord EFS 2.5
Sysco 2.0
Pfizer 2.0
Fiserv 1.9
Liberty Media 1.9
................................................................................
Target 1.8
SunGard Data Systems 1.7
Apollo Group 1.7
Affiliated Computer Services 1.7
Citigroup 1.6
................................................................................
Vodafone 1.6
Viacom 1.5
Baker Hughes 1.4
UnitedHealth Group 1.4
American International Group 1.4
................................................................................
Kohl's 1.4
Freddie Mac 1.3
Pharmacia 1.3
Family Dollar Stores 1.3
Smith International 1.3
................................................................................
Total 47.9%
Note: Table excludes investments in the T. Rowe Price Reserve Investment Fund.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
PORTFOLIO HIGHLIGHTS
CONTRIBUTIONS TO THE CHANGE IN NET ASSET VALUE PER SHARE
6 Months Ended 12/31/02
TEN BEST CONTRIBUTORS TEN WORST CONTRIBUTORS
--------------------------------------------------------------------------------
Expedia * 10(cent) Concord EFS -32(cent)
Vodafone 8 Laboratory Corp. of America 21
Forest Laboratories * 5 Home Depot 14
Sysco 5 Target 14
Pharmacia 5 Brocade Communications Systems 11
Getty Images * 4 Baxter International 11
Adobe Systems * 4 Wyeth 10
Symantec * 3 BISYS Group 10
SLM Corporation * 3 Certegy 9
Wal-Mart * 3 Family Dollar Stores 9
Total 50(cent) Total -141(cent)
12 Months Ended 12/31/02
TEN BEST CONTRIBUTORS TEN WORST CONTRIBUTORS
--------------------------------------------------------------------------------
Apollo Group 22(cent) Western Wireless ** -40(cent)
WellPoint Health Networks 11 AOL Time Warner 39
Expedia * 10 Concord EFS 38
Smith International 7 Home Depot 35
Weight Watchers 6 Clear Channel Communications 26
Forest Laboratories * 5 TMP Worldwide ** 24
Adobe Systems 5 Flextronics ** 23
Sysco * 4 Tyco International ** 23
Getty Images * 4 SmartForce PLC ** 22
Anthem 4 Peregrine Systems ** 21
Total 78(cent) Total -291(cent)
* Position added
** Position eliminated
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH 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.
The following table was depicted as a graph in the printed material.
S&P Lipper New America
12/31/1992 10000 10000 10000
12/31/1993 11008 11436.1 11744
12/31/1994 11153 11113 10871.3
12/31/1995 15345 14860.2 15688.7
12/31/1996 18868 17512.9 18827.7
12/31/1997 25163 21532.2 22799.7
12/31/1998 32354 26871.5 26879.2
12/31/1999 39162 39327.6 30308.3
12/31/2000 35595 34587.3 7116.6
12/31/2001 31364 25884.9 3892.9
12/31/2002 24432 18165.1 17074.1
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 12/31/02 1 Year 3 Years 5 Years 10 Years
New America Growth Fund -28.54% -17.41% -5.62% 5.50%
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
Returns do not reflect taxes that the shareholder may pay on fund distributions
or the redemption of fund shares.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
Year
Ended
12/31/02 12/31/01 12/31/00 12/31/99 12/31/98
NET ASSET VALUE
Beginning of period $ 30.87 $ 35.77 $ 48.06 $ 47.79 $ 44.19
Investment activities
Net investment income (loss) (0.11) (0.12) (0.14) (0.20) (0.21)
Net realized and
unrealized gain (loss) (8.70) (4.14) (4.63) 5.87 7.65
Total from
investment activities (8.81) (4.26) (4.77) 5.67 7.44
Distributions
Net realized gain - (0.64) (7.52) (5.40) (3.84)
NET ASSET VALUE
END OF PERIOD $ 22.06 $ 30.87 $ 35.77 $ 48.06 $ 47.79
RATIOS/SUPPLEMENTAL DATA
TOTAL RETURN^ (28.54)% (11.89)% (10.53)% 12.76% 17.89%
Ratio of total expenses to
average net assets 0.99% 0.99% 0.93% 0.94% 0.95%
Ratio of net investment
income (loss) to average
net assets (0.42)% (0.36)% (0.33)% (0.43)% (0.49)%
Portfolio turnover rate 61.5% 52.1% 81.4% 39.7% 45.6%
Net assets, end of period
(in millions) $ 761 $ 1,183 $ 1,519 $ 2,064 $ 2,064
^ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
December 31, 2002
STATEMENT OF NET ASSETS Shares Value
In thousands
COMMON STOCKS 97.6%
CONSUMER DISCRETIONARY 17.0%
HOTELS, RESTAURANTS & LEISURE 0.8%
Starbucks * 300,000 $ 6,114
6,114
INTERNET & CATALOG RETAIL 1.0%
USA Interactive * 335,000 7,678
7,678
MEDIA 6.3%
AOL Time Warner * 375,000 4,913
Clear Channel Communications * 60,000 2,237
Comcast, Class A * 30,000 678
EchoStar Communications, Class A * 225,000 5,008
Getty Images * 116,000 3,544
Liberty Media, Class A * 1,600,000 14,304
Univision Communications, Class A * 230,000 5,635
Viacom, Class B * 280,000 11,413
47,732
MULTILINE RETAIL 7.0%
Costco Wholesale * 220,000 6,173
Dollar General 440,000 5,258
Family Dollar Stores 320,000 9,987
Kohl's * 185,000 10,351
Target 465,000 13,950
Wal-Mart 150,000 7,577
53,296
SPECIALTY RETAIL 1.9%
Home Depot 210,000 5,031
Weight Watchers * 200,000 9,194
14,225
Total Consumer Discretionary 129,045
CONSUMER STAPLES 2.3%
FOOD & DRUG RETAILING 2.3%
Sysco 515,000 15,342
Walgreen 60,000 1,751
Total Consumer Staples 17,093
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
Shares Value
In thousands
ENERGY 4.0%
ENERGY EQUIPMENT & SERVICES 4.0%
Baker Hughes 340,000 $ 10,945
Diamond Offshore Drilling 430,000 9,395
Smith International * 300,000 9,786
Total Energy 30,126
FINANCIALS 13.4%
BANKS 1.4%
Mellon Financial 200,000 5,222
Northern Trust 150,000 5,257
10,479
DIVERSIFIED FINANCIALS 7.2%
Charles Schwab 200,000 2,170
Citigroup 355,000 12,492
Freddie Mac 170,000 10,038
Goldman Sachs Group 135,000 9,194
SLM Corporation 65,000 6,751
State Street 200,000 7,800
Waddell & Reed Financial, Class A 306,900 6,037
54,482
INSURANCE 4.8%
AMBAC Financial Group 85,000 4,780
American International Group 185,000 10,702
Hartford Financial Services Group 85,000 3,862
Marsh & McLennan 195,000 9,011
Progressive Corporation 65,000 3,226
Prudential 62,000 1,968
Travelers Property Casualty, Class A * 213,837 3,133
36,682
Total Financials 101,643
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
Shares Value
In thousands
HEALTH CARE 19.8%
BIOTECHNOLOGY 3.0%
Amgen * 60,000 $ 2,900
Cephalon * 95,000 4,624
Genentech * 50,000 1,658
Gilead Sciences * 180,000 6,120
MedImmune * 290,000 7,879
23,181
HEALTH CARE EQUIPMENT & SUPPLIES 2.5%
Baxter International 235,000 6,580
Biomet 120,000 3,439
Dentsply International 240,000 8,928
18,947
HEALTH CARE PROVIDERS & SERVICES 6.9%
Anthem * 130,000 8,177
HCA 35,000 1,453
Laboratory Corporation of America * 260,000 6,043
Omnicare 875,000 20,851
UnitedHealth Group 130,000 10,855
WellPoint Health Networks * 70,000 4,981
52,360
PHARMACEUTICALS 7.4%
Abbott Laboratories 230,000 9,200
Allergan 82,000 4,725
Eli Lilly 90,000 5,715
Forest Laboratories * 55,000 5,402
Pfizer 500,000 15,285
Pharmacia 240,000 10,032
Wyeth 165,000 6,171
56,530
Total Health Care 151,018
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
Shares Value
In thousands
INDUSTRIALS & BUSINESS SERVICES 18.0%
AEROSPACE & DEFENSE 0.6%
Honeywell International 200,000 $ 4,800
4,800
AIR FREIGHT & LOGISTICS 1.0%
UPS, Class B 125,000 7,885
7,885
COMMERCIAL SERVICES & SUPPLIES 14.4%
Apollo Group, Class A * 290,000 12,760
BISYS Group * 200,000 3,180
Certegy * 359,900 8,836
ChoicePoint * 540,000 21,325
Concord EFS * 1,207,000 18,998
First Data 750,000 26,557
Fiserv * 430,000 14,598
Robert Half International * 180,000 2,900
109,154
INDUSTRIAL CONGLOMERATES 1.0%
GE 311,000 7,573
7,573
MACHINERY 1.0%
Danaher 120,000 7,884
7,884
Total Industrials & Business Services 137,296
INFORMATION TECHNOLOGY 19.9%
COMMUNICATIONS EQUIPMENT 3.5%
Brocade Communications Systems * 100,000 414
Cisco Systems * 1,550,000 20,305
Nokia ADR 185,000 2,868
QUALCOMM * 80,000 2,911
26,498
COMPUTER PERIPHERALS 0.4%
Lexmark International, Class A * 60,000 3,630
3,630
INTERNET SOFTWARE & SERVICES 0.7%
Expedia, Class A * 80,000 5,354
5,354
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
Shares Value
In thousands
IT CONSULTING & SERVICES 4.6%
Accenture, Class A * 517,000 $ 9,301
Affiliated Computer Services, Class A * 240,000 12,636
SunGard Data Systems * 550,000 12,958
34,895
SEMICONDUCTOR EQUIPMENT & PRODUCTS 4.7%
Analog Devices * 325,000 7,758
Applied Materials * 400,000 5,212
Intersil Holding, Class A * 365,000 5,088
KLA-Tencor * 125,000 4,421
Maxim Integrated Products 230,000 7,599
Texas Instruments 375,000 5,629
35,707
SOFTWARE 6.0%
Adobe Systems 185,000 4,588
Mercury Interactive * 145,000 4,300
Microsoft * 520,000 26,884
Siebel Systems * 215,000 1,608
Symantec * 100,000 4,051
VERITAS Software * 260,000 4,061
45,492
Total Information Technology 151,576
TELECOMMUNICATION SERVICES 1.6%
WIRELESS TELECOMMUNICATION SERVICES 1.6%
Vodafone ADR 665,000 12,050
Total Telecommunication Services 12,050
Total Miscellaneous Common Stocks 1.6% 12,488
Total Common Stocks (Cost $748,106) 742,335
SHORT-TERM INVESTMENTS 2.6%
MONEY MARKET FUNDS 2.6%
T. Rowe Price Reserve Investment Fund, 1.53% # 19,866,540 19,867
Total Short-Term Investments (Cost $19,867) 19,867
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
Value
In thousands
Total Investments in Securities
100.2% of Net Assets (Cost $767,973) $ 762,202
Other Assets Less Liabilities (1,159)
NET ASSETS $ 761,043
Net Assets Consist of:
Undistributed net realized gain (loss) $(151,524)
Net unrealized gain (loss) (5,771)
Paid-in-capital applicable to 34,498,288 shares
of no par value capital stock outstanding;
unlimited shares authorized 918,338
NET ASSETS $ 761,043
NET ASSET VALUE PER SHARE $ 22.06
# Seven-day yield
* Non-income producing
ADR American Depository Receipts
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
STATEMENT OF OPERATIONS
In thousands Year
Ended
12/31/02
INVESTMENT INCOME (LOSS)
Income
Dividend $ 4,316
Interest 813
Total income 5,129
Expenses
Investment management 6,113
Shareholder servicing 2,606
Custody and accounting 122
Prospectus and shareholder reports 86
Registration 27
Proxy and annual meeting 24
Legal and audit 16
Trustees 10
Miscellaneous 8
Total expenses 9,012
Expenses paid indirectly (85)
Net expenses 8,927
Net investment income (loss) (3,798)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain or loss on securities (73,887)
Change in net unrealized gain or loss on
securities (246,955)
Net realized and unrealized gain (loss) (320,842)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $(324,640)
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
STATEMENT OF CHANGES IN NET ASSETS
In thousands Year
Ended
12/31/02 12/31/01
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss) $ (3,798) $ (4,658)
Net realized gain (loss) (73,887) (77,344)
Change in net unrealized gain (loss) (246,955) (104,718)
Increase (decrease) in net
assets from operations (324,640) (186,720)
Distributions to shareholders
Net realized gain - (24,211)
Capital share transactions *
Shares sold 107,979 165,212
Distributions reinvested - 23,540
Shares redeemed (205,579) (313,336)
Increase (decrease) in net assets
from capital share transactions (97,600) (124,584)
NET ASSETS
Increase (decrease) during period (422,240) (335,515)
Beginning of period 1,183,283 1,518,798
END OF PERIOD $ 761,043 $ 1,183,283
*Share information
Shares sold 4,244 5,149
Distributions reinvested - 771
Shares redeemed (8,074) (10,054)
Increase (decrease) in shares outstanding (3,830) (4,134)
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
December 31, 2002
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price New American Growth Fund, Inc. (the fund) is registered under
the Investment Company Act of 1940 the 1940 Act) as a diversified, open-end
management investment company and commenced operations on September 30,
1985. The fund seeks 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.
The accompanying financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America,
which require the use of estimates made by fund management.
VALUATION Equity securities listed or regularly traded on a securities
exchange or in the over-the-counter market are valued at the last quoted
sale price, or official closing price for certain markets, 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. Listed securities not traded on a
particular day are valued at the mean of the latest bid and ask prices for
domestic securities and the last quoted sale price for international
securities. Other equity securities are valued at a price within the limits
of the latest bid and ask prices deemed by the Board of Trustees, or by
persons delegated by the Board, best to reflect fair value.
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 Trustees.
EXPENSES PAID INDIRECTLY Certain security trades are directed to brokers
who have agreed to rebate a portion of the related commission to the fund
to pay fund expenses. Additionally, credits earned on temporarily
uninvested cash balances at the custodian are used to reduce the fund's
custody charges. Total expenses in the accompanying statement of operations
are presented before reduction for rebates and credits, which totaled
$84,000 and $1,000, respectively, for the year ended December 31, 2002.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
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.
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term
securities, aggregated $539,720,000 and $577,289,000, respectively, for the
year ended December 31, 2002.
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 to
shareholders all of its taxable income and gains. Federal income tax
regulations differ from generally accepted accounting principles;
therefore, distributions determined in accordance with tax regulations may
differ significantly in amount or character from net investment income and
realized gains for financial reporting purposes. Financial reporting
records are adjusted for permanent book/tax differences to reflect tax
character. Temporary differences are not adjusted.
There were no distributions in the year ended December 31. At December 31,
2002, the tax-basis components of net assets were as follows:
Unrealized appreciation $ 134,674,000
Unrealized depreciation (152,036,000)
Net unrealized appreciation (depreciation) (17,362,000)
Capital loss carryforwards (139,933,000)
Paid-in capital 918,338,000
Net assets $ 761,043,000
Pursuant to federal income tax regulations applicable to investment
companies, the fund has elected to treat net capital losses realized
between November 1 and December 31 of each year as occurring on the first
day of the following tax year. Consequently, $11,591,000 of realized losses
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
reflected in the accompanying financial statements will not be recognized
for tax purposes until 2003. The fund intends to retain realized gains to
the extent of available capital loss carryforwards for federal income tax
purposes. As of December 31, 2002, the fund had $63,480,000 of capital loss
carryforwards that expire in 2009, and $76,453,000 that expire in 2010.
For the year ended December 31, 2002, the fund recorded the following
permanent reclassifications, which relate primarily to the current net
operating loss. Results of operations and net assets were not affected by
these reclassifications.
Undistributed net investment income $ 3,798,000
Paid-in capital (3,798,000)
At December 31, 2002, the cost of investments for federal income tax
purposes was $779,564,000.
NOTE 4- RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price
Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The
investment management agreement between the fund and the manager provides
for an annual investment management fee, which is computed daily and paid
monthly. The fee consists of an individual fund fee, equal to 0.35 % of the
fund's average daily net assets, and the fund's pro-rata share of a group
fee. The group fee is calculated based on the combined net assets of
certain mutual funds sponsored by Price Associates (the group) applied to a
graduated fee schedule, with rates ranging from 0.48% for the first $1
billion of assets to 0.295% for assets in excess of $120 billion. The
fund's portion of the group fee is determined by the ratio of its net
assets to those of the group. At December 31, 2002, the effective annual
group fee rate was 0.32%, and investment management fee payable totaled
$445,000.
In addition, the fund has entered into service agreements with Price
Associates and two wholly owned subsidiaries of Price Associates
collectively, Price). Price Associates computes the daily share price and
maintains the financial records of the fund. T. Rowe Price Services, Inc.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
provides shareholder and administrative services in its capacity as the
fund's transfer and dividend disbursing agent. T. Rowe Price Retirement
Plan Services, Inc. provides subaccounting and recordkeeping services for
certain retirement accounts invested in the fund. Expenses incurred
pursuant to these service agreements totaled $2,116,000 for the year ended
December 31, 2002, of which $211,000 was payable at period end.
The fund may invest in the T. Rowe Price Reserve Investment Fund and T.
Rowe Price 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 and/or its
affiliates, 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 December 31, 2002, totaled $813,000 and are
reflected as interest income in the accompanying Statement of Operations.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
T. ROWE PRICE NEW AMERICA GROWTH FUND
In our opinion, the accompanying statement of net assets 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 T. Rowe Price New America Growth Fund (the "Fund") at December 31, 2002,
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 December 31, 2002 by correspondence
with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 21, 2003
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
Your fund is governed by a Board of Trustees that meets regularly to review
investments, performance, expenses, and other business matters, and is
responsible for protecting the interests of shareholders. The majority of the
fund's trustees are independent of T. Rowe Price Associates, Inc. (OT. Rowe
PriceO); OinsideO trustees are officers of T. Rowe Price. The Board of Trustees
elects the fund's officers, who are listed in the final table. The business
address of each trustee and officer is 100 East Pratt Street, Baltimore, MD
21202.
INDEPENDENT TRUSTEES
NAME (DATE OF BIRTH) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
YEAR ELECTED* AND DIRECTORSHIPS OF OTHER PUBLIC COMPANIES
Anthony W. Deering Director, Chairman of the Board, President, and
(1/28/45) Chief Executive Officer, The Rouse Company, real
2001 estate developers
Donald W. Dick, Jr. Principal, EuroCapital Advisors, LLC, an
(1/27/43) acquisition and management advisory firm
1985
David K. Fagin Director, Dayton Mining Corp. (6/98 to present),
(4/9/38) Golden Star Resources Ltd., and Canyon Resources
1994 Corp. (5/00 to present); Chairman and President,
Nye Corp.
F. Pierce Linaweaver President, F. Pierce Linaweaver & Associates,Inc.,
(8/22/34) consulting environmental and civil engineers
2001
Hanne M. Merriman Retail Business Consultant; Director, Ann Taylor
(11/16/41) Stores Corp., Ameren Corp., Finlay Enterprises,
1994 Inc., The Rouse Company, and US Airways Group,Inc.
John G. Schreiber Owner/President, Centaur Capital Partners, Inc., a
(10/21/46) real estate investment company; Senior Advisor and
2001 Partner, Blackstone Real Estate Advisors, L.P.;
Director, AMLI Residential Properties Trust, Host
Marriott Corp., and The Rouse Company
Hubert D. Vos Owner/President, Stonington Capital Corp., a
(8/2/33) private investment company
1994
Paul M. Wythes Founding Partner, Sutter Hill Ventures, a venture
(6/23/33) capital limited partnership, providing equity
1985 capital to young high technology companies
throughout the United States; Director, Teltone
Corp.
*Each independent trustee oversees 105 T. Rowe Price portfolios and serves until
the election of a successor.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
INSIDE TRUSTEES
NAME
(DATE OF BIRTH)
YEAR ELECTED*
[NUMBER OF T. ROWE PRICE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND
PORTFOLIOS OVERSEEN] DIRECTORSHIPS OF OTHER PUBLIC COMPANIES
John H. Laporte Director and Vice President, T. Rowe Price Group,
(7/26/45) Inc.; Vice President, T. Rowe Price; Vice
1985 President, New America Growth Fund
[15]
James S. Riepe Director and Vice President, T. Rowe Price; Vice
(6/25/43) Chairman of the Board, Director, and Vice
1985 President, T. Rowe Price Group, Inc.; Chairman of
[105] the Board and Director, T. Rowe Price Global Asset
Management Limited, T. Rowe Price Investment
Services, Inc., T. Rowe Price Retirement Plan
Services, Inc., and T. Rowe Price Services, Inc.;
Chairman of the Board, Director, President, and
Trust Officer, T. Rowe Price Trust Company;
Director, T. Rowe Price International, Inc., and
T. Rowe Price Global Investment Services Limited;
Chairman of the Board, New America Growth Fund
M. David Testa Chief Investment Officer, Director, and Vice
(4/22/44) President, T. Rowe Price; Vice Chairman of the
1997 Board, Chief Investment Officer, Director, and
[105] Vice President, T. Rowe Price Group, Inc.;
Director, T. Rowe Price Global Asset Management
Limited, T. Rowe Price Global Investment Services
Limited, and T. Rowe Price International, Inc.;
Director and Vice President, T. Rowe Price Trust
Company
*Each inside trustee serves until the election of a successor.
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
................................................................................
OFFICERS
NAME (DATE OF BIRTH)
TITLE AND FUND(S) SERVED PRINCIPAL OCCUPATION(S)
Joseph A. Carrier (12/30/60) Vice President, T. Rowe Price, T. Rowe Price
Treasurer, Group, Inc., and T. Rowe Price Investment
New America Growth Fund Services, Inc.
Giri Devulapally (11/18/67) Vice President, T. Rowe Price and T. Rowe
Vice President, Price Group, Inc.
New America Growth Fund
Eric M. Gerster (3/23/71) Vice President, T. Rowe Price and T. Rowe
Vice President, Price Group, Inc.
New America Growth Fund
Henry H. Hopkins (12/23/42) Director and Vice President, T. Rowe Price
Vice President, Group, Inc., T. Rowe Price Investment
New America Growth Fund Services, Inc., T. Rowe Price Services, Inc.,
and T. Rowe Price Trust Company; Vice
President, T. Rowe Price, T. Rowe Price
International, Inc., and T. Rowe Price
Retirement Plan Services, Inc.
J. Jeffrey Lang (1/10/62) Vice President, T. Rowe Price and T. Rowe
Vice President, Price Trust Company
New America Growth Fund
Christopher R. Leonard (1/11/73) Vice President, T. Rowe Price and T. Rowe
Vice President, Price Group, Inc.
New America Growth Fund
Patricia B. Lippert (1/12/53) Assistant Vice President, T. Rowe Price and
Secretary, T. Rowe Price Investment Services, Inc.
New America Growth Fund
Robert J. Marcotte (3/6/62) Vice President, T. Rowe Price and T. Rowe
Vice President, Price Group, Inc.
New America Growth Fund
David S. Middleton (1/18/56) Vice President, T. Rowe Price, T. Rowe Price
Controller, Group, Inc., and T. Rowe Price Trust Company
New America Growth Fund
Joseph M. Milano (9/14/72) Vice President, T. Rowe Price and T. Rowe
Executive Vice President, Price Group, Inc.
New America Growth Fund
Robert W. Smith (4/11/61) Vice President, T. Rowe Price, T. Rowe Price
President, Group, Inc., and T. Rowe Price International,
New America Growth Fund Inc.
R. Candler Young (9/28/71) Vice President, T. Rowe Price and T. Rowe
Vice President, Price Group, Inc; formerly Investment Banking
New America Growth Fund Summer Associate, Goldman Sachs & Company
(to 1999)
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
<PAGE>
T. ROWE PRICE INVESTMENT SERVICES AND INFORMATION
................................................................................
INVESTMENT SERVICES AND INFORMATION
KNOWLEDGEABLE SERVICE REPRESENTATIVES
BY PHONE 1-800-225-5132. Available Monday through Friday from 7 a.m. until
midnight ET and weekends from 8:30 a.m. until 5 p.m. ET.
IN PERSON. Available in T. Rowe Price Investor Centers. Please call a
service representative at 1-800-225-5132 or visit the Web at
www.troweprice.com/investorcenter to locate a center near you.
ACCOUNT SERVICES
AUTOMATED 24-HOUR SERVICES INCLUDING TELE*ACCESS(R)and Account Access
through the T. Rowe Price Web site on the Internet. Address:
www.troweprice.com.
AUTOMATIC INVESTING. From your bank account or paycheck.
AUTOMATIC WITHDRAWAL. Scheduled, automatic redemptions.
IRA REBALANCING. Ensuring that your accounts reflect your desired asset
allocation.
BROKERAGE SERVICES *
INDIVIDUAL INVESTMENTS. Stocks, bonds, options, precious metals, and other
securities at a savings over full-service commission rates.
INVESTMENTINFORMATION
CONSOLIDATED STATEMENT. Overview of all of your accounts.
SHAREHOLDER REPORTS. Manager reviews of their strategies and results.
T. ROWE PRICE REPORT. Quarterly investment newsletter.
PERFORMANCE UPDATE. Quarterly review of all T. Rowe Price fund results.
INSIGHTS. Educational reports on investment strategies and markets.
INVESTMENT GUIDES. Asset Mix Worksheet, Diversifying Overseas: A Guide to
International Investing, Retirement Planning Kit, Retirement Readiness
Guide, and Tax Considerations Guide.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
<PAGE>
T. ROWE PRICE MUTUAL FUNDS
................................................................................
STOCK FUNDS BLENDED ASSET FUNDS MONEYMARKET FUNDS
DOMESTIC (CONTINUED) TAXABLE
Blue Chip Growth* Retirement 2020 Prime Reserve
Capital Appreciation Retirement 2030 Summit Cash Reserves
Capital Opportunity Retirement 2040 U.S. Treasury Money
Developing Technologies Retirement Income TAX-FREE
Diversified Small-Cap Tax-Efficient Balanced California Tax-Free Money
Growth Maryland Tax-Free Money
Dividend Growth BOND FUNDS New York Tax-Free Money
Equity Income* DOMESTIC TAXABLE Summit Municipal Money
Equity Index 500 Corporate Income Market
Extended Equity Market GNMA Tax-Exempt Money
Index High Yield*
Financial Services Inflation Protected Bond INTERNATIONAL/
Growth & Income New Income* GLOBAL FUNDS
Growth Stock* Short-Term Bond STOCK
Health Sciences Spectrum Income Emerging Europe &
Media & Telecommuni- Summit GNMA Mediterranean
cations U.S. Bond Index Emerging Markets Stock
Mid-Cap Growth* U.S. Treasury Intermediate European Stock
Mid-Cap Value* U.S. Treasury Long-Term Global Stock
New America Growth DOMESTIC TAX-FREE Global Technology
New Era California Tax-Free Bond International Discovery
New Horizons Florida Intermediate International Equity
Real Estate Tax-Free Index
Science & Technology* Georgia Tax-Free Bond International Growth
Small-Cap Stock* Maryland Short-Term & Income*
Small-Cap Value* Tax-Free Bond International Stock*
Spectrum Growth Maryland Tax-Free Bond Japan
Tax-Efficient Growth New Jersey Tax-Free Bond Latin America
Tax-Efficient Multi-Cap New York Tax-Free Bond New Asia
Growth Summit Municipal Income Spectrum International
Total Equity Market Index Summit Municipal BOND
Value* Intermediate Emerging Markets Bond
Tax-Free High Yield International Bond*
BLENDED ASSET FUNDS Tax-Free Income*
Balanced Tax-Free Intermediate
Personal Strategy Balanced Bond
Personal Strategy Growth Tax-Free Short-
Personal Strategy Income Intermediate
Retirement 2010 Virginia Tax-Free Bond
For more information about T. Rowe Price funds or services, please contact us
directly at 1-800-225-5132.
* T. Rowe Price Advisor Class available for these funds. The T. Rowe Price
Advisor Class is offered only through financial intermediaries. For more
information about T. Rowe Price Advisor Class funds, contact your financial
professional or T. Rowe Price at 1-877-804-2315.
+ Closed to new investors.
++ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
Please call for a prospectus, which contains complete information, including
risks, fees, and expenses. Read it carefully before investing.
T. Rowe Price Investment Services, Inc.
100 East Pratt Street Baltimore, MD 21202
29240 F60-050 12/31/02
</TEXT>
</DOCUMENT>