-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Lyj5V4MffY9+dSN1Cw9iRcZPaprLDLv9T8JMQ7CxNtwk4neI6fUFJ0ZN0lRK5e6Q WSgzjj5yPZz+2u8ClT+Abg== 0000773485-04-000010.txt : 20040819 0000773485-04-000010.hdr.sgml : 20040819 20040819105915 ACCESSION NUMBER: 0000773485-04-000010 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040630 FILED AS OF DATE: 20040819 EFFECTIVENESS DATE: 20040819 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICE T ROWE NEW AMERICA GROWTH FUND CENTRAL INDEX KEY: 0000773485 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04358 FILM NUMBER: 04985441 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 N-CSRS 1 nag.txt T. ROWE PRICE NEW AMERICA GROWTH FUND Item 1. Report to Shareholders T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- June 30, 2004 Certified Semiannual Report This report is certified under the Sarbanes-Oxley Act of 2002, which requires that public companies, including mutual funds, affirm that the information provided in their annual and semiannual shareholder reports fully and fairly represents their financial position. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report (Unaudited) FINANCIAL HIGHLIGHTS For a share outstanding throughout each period - -------------------------------------------------------------------------------- 6 Months Year Ended Ended 6/30/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 NET ASSET VALUE Beginning of period $ 29.83 $ 22.06 $ 30.87 $ 35.77 $ 48.06 $ 47.79 Investment activities Net investment income (loss) (0.05) (0.09) (0.11) (0.12) (0.14) (0.20) Net realized and unrealized gain (loss) 1.62 7.86 (8.70) (4.14) (4.63) 5.87 Total from investment activities 1.57 7.77 (8.81) (4.26) (4.77) 5.67 Distributions Net realized gain - - - (0.64) (7.52) (5.40) NET ASSET VALUE End of period $ 31.40 $ 29.83 $ 22.06 $ 30.87 $ 35.77 $ 48.06 --------------------------------------------------------------- Ratios/ Supplemental Data Total return^ 5.26% 35.22% (28.54)% (11.89)% (10.53)% 12.76% Ratio of total expenses to average net assets 0.93%! 0.98% 0.99% 0.99% 0.93% 0.94% Ratio of net investment income (loss) to average net assets (0.32)%! (0.34)% (0.42)% (0.36)% (0.33)% (0.43)% Portfolio turnover rate 47.7%! 61.6% 61.5% 52.1% 81.4% 39.7% Net assets, end of period (in millions) $ 932 $ 915 $ 761 $ 1,183 $ 1,519 $ 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. ! Annualized The accompanying notes are an integral part of these financial statements. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report (Unaudited) June 30, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value - -------------------------------------------------------------------------------- (Cost and value in $ 000s) COMMON STOCKS 97.7% CONSUMER DISCRETIONARY 15.5% Automobiles 2.0% Harley-Davidson 300,000 18,582 18,582 Hotels, Restaurants & Leisure 2.3% International Game Technology 435,000 16,791 PF Chang's China Bistro * 120,000 4,938 21,729 Media 6.1% EchoStar Communications, Class A * 272,000 8,364 Getty Images * 266,000 15,960 Liberty Media, Class A * 950,000 8,540 Scripps, Class A 125,000 13,125 Viacom, Class B 300,000 10,716 56,705 Multiline Retail 1.7% Family Dollar Stores 514,300 15,645 15,645 Specialty Retail 3.4% PETsMART 455,000 14,765 Ross Stores 200,000 5,352 Staples 388,700 11,393 31,510 Total Consumer Discretionary 144,171 CONSUMER STAPLES 2.9% Food & Staples Retailing 2.9% Sysco 350,000 12,554 Wal-Mart 247,000 13,032 Whole Foods Market 15,000 1,432 Total Consumer Staples 27,018 ENERGY 5.2% Energy Equipment & Services 5.2% Baker Hughes 320,000 12,048 Cooper Cameron * 170,000 8,279 Diamond Offshore Drilling 425,000 10,128 Smith International * 320,000 17,843 Total Energy 48,298 FINANCIALS 11.1% Capital Markets 5.4% Eaton Vance 120,000 4,585 Franklin Resources 115,100 5,764 Goldman Sachs Group 115,000 10,829 Investor's Financial Services 90,000 3,922 Lehman Brothers 80,000 6,020 Morgan Stanley 100,000 5,277 State Street 200,000 9,808 Waddell & Reed Financial, Class A 200,000 4,422 50,627 Consumer Finance 0.7% SLM Corporation 165,000 6,674 6,674 Diversified Financial Services 1.8% Citigroup 200,000 9,300 Principal Financial Group 210,000 7,304 16,604 Insurance 2.1% American International Group 190,000 13,543 Saint Paul Companies 140,000 5,676 19,219 Real Estate 0.2% St. Joe 60,000 2,382 2,382 Thrifts & Mortgage Finance 0.9% Radian Group 175,000 8,382 8,382 Total Financials 103,888 HEALTH CARE 17.0% Biotechnology 3.8% Amgen * 235,000 12,824 Biogen Idec * 40,000 2,530 Cephalon * 117,600 6,350 Genentech * 15,000 843 Genzyme * 30,000 1,420 Gilead Sciences * 125,000 8,375 Neurocrine Biosciences * 40,000 2,074 OSI Pharmaceuticals * 20,000 1,409 35,825 Health Care Equipment & Supplies 3.8% Biomet 140,000 6,222 Boston Scientific * 160,000 6,848 Dentsply International 70,000 3,647 Guidant 40,000 2,235 Medtronic 310,000 15,103 Stryker 20,000 1,100 35,155 Health Care Providers & Services 4.9% Anthem * 65,000 5,821 Laboratory Corporation of America * 325,000 12,902 Omnicare 225,000 9,632 Quest Diagnostics 70,000 5,947 UnitedHealth Group 175,000 10,894 45,196 Pharmaceuticals 4.5% Eli Lilly 55,000 3,845 Forest Laboratories * 205,000 11,609 IVAX * 255,000 6,117 Johnson & Johnson 125,000 6,963 Pfizer 395,000 13,541 42,075 Total Health Care 158,251 INDUSTRIALS & BUSINESS SERVICES 13.3% Aerospace & Defense 1.7% Lockheed Martin 300,000 15,624 15,624 Air Freight & Logistics 4.0% C.H. Robinson Worldwide 50,000 2,292 Expeditors International of Washington 185,000 9,141 UPS, Class B 340,000 25,558 36,991 Airlines 0.2% Southwest Airlines 125,000 2,096 2,096 Commercial Services & Supplies 5.7% Apollo Group, Class A * 82,500 7,284 ChoicePoint * 610,000 27,853 Consolidated Graphics * 100,000 4,405 Education Management * 420,000 13,801 53,343 Industrial Conglomerates 1.7% GE 480,000 15,552 15,552 Total Industrials & Business Services 123,606 INFORMATION TECHNOLOGY 27.4% Communications Equipment 2.8% Cisco Systems * 750,000 17,775 Juniper Networks * 110,000 2,703 QLogic * 110,000 2,925 Research In Motion * 35,000 2,395 25,798 Computers & Peripherals 2.8% Dell * 725,000 25,970 25,970 Electronic Equipment & Instruments 1.3% CDW 190,000 12,114 12,114 Internet Software & Services 0.8% InterActiveCorp * 250,000 7,535 7,535 IT Services 5.9% Affiliated Computer Services, Class A * 240,000 12,706 Certegy 290,000 11,252 First Data 195,000 8,681 Fiserv * 245,000 9,528 SunGard Data Systems * 500,000 13,000 55,167 Semiconductor & Semiconductor Equipment 4.7% Intel 300,000 8,280 Intersil Holding, Class A 550,000 11,913 Maxim Integrated Products 115,000 6,028 Microchip Technology 215,000 6,781 Novellus Systems * 190,000 5,974 Xilinx 154,000 5,130 44,106 Software 9.1% Adobe Systems 160,000 7,440 Cadence Design Systems * 300,000 4,389 Intuit * 375,000 14,467 Jack Henry & Associates 410,000 8,241 Mercury Interactive * 215,000 10,713 Microsoft 825,000 23,562 Red Hat * 90,000 2,067 SAP ADR 260,000 10,871 Symantec * 70,000 3,065 84,815 Total Information Technology 255,505 MATERIALS 0.4% Metals & Mining 0.4% Nucor 55,000 4,222 Total Materials 4,222 TELECOMMUNICATION SERVICES 2.7% Wireless Telecommunication Services 2.7% Nextel Communications, Class A * 375,000 9,997 Vodafone ADR 365,000 8,066 Western Wireless, Class A * 260,000 7,517 Total Telecommunication Services 25,580 Total Miscellaneous Common Stocks 2.2% 20,362 Total Common Stocks (Cost $714,201) 910,901 SHORT-TERM INVESTMENTS 2.3% Money Market Fund 2.3% T. Rowe Price Reserve Investment Fund, 1.16% # 20,948,802 20,949 Total Short-Term Investments (Cost $20,949) 20,949 Total Investments in Securities 100.0% of Net Assets (Cost $735,150) $931,850 -------- (1) Denominated in U.S. dollars unless otherwise noted # Seven-day yield * Non-income producing ADR American Depository Receipts The accompanying notes are an integral part of these financial statements. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report (Unaudited) June 30, 2004 STATEMENT OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- (In thousands except shares and per share amounts) Assets Investments in securities, at value (cost $735,150) $ 931,850 Other assets 4,721 Total assets 936,571 Liabilities Total liabilities 4,332 NET ASSETS $ 932,239 ------------ Net Assets Consist of: Undistributed net investment income (loss) $ (1,447) Undistributed net realized gain (loss) (44,292) Net unrealized gain (loss) 196,700 Paid-in-capital applicable to 29,693,002 shares of no par value capital stock outstanding; unlimited shares authorized 781,278 NET ASSETS $ 932,239 ------------ NET ASSET VALUE PER SHARE $ 31.40 ------------ The accompanying notes are an integral part of these financial statements. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report (Unaudited) STATEMENT OF OPERATIONS - -------------------------------------------------------------------------------- ($ 000s) 6 Months Ended 6/30/04 Investment Income (Loss) Dividend income $ 2,798 Expenses Investment management 3,048 Shareholder servicing 1,080 Custody and accounting 67 Prospectus and shareholder reports 24 Registration 15 Legal and audit 7 Trustees 3 Miscellaneous 1 Total expenses 4,245 Net investment income (loss) (1,447) Realized and Unrealized Gain (Loss) Net realized gain (loss) on securities 74,832 Change in net unrealized gain (loss) on securities (26,169) Net realized and unrealized gain (loss) 48,663 INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 47,216 ------------ The accompanying notes are an integral part of these financial statements. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report (Unaudited) STATEMENT OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- ($ 000s) 6 Months Year Ended Ended 6/30/04 12/31/03 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ (1,447) $ (2,861) Net realized gain (loss) 74,832 32,400 Change in net unrealized gain (loss) (26,169) 228,640 Increase (decrease) in net assets from operations 47,216 258,179 Capital share transactions * Shares sold 47,162 110,234 Shares redeemed (77,171) (214,424) Increase (decrease) in net assets from capital share transactions (30,009) (104,190) Net Assets Increase (decrease) during period 17,207 153,989 Beginning of period 915,032 761,043 End of period $ 932,239 $ 915,032 ----------- ----------- (Including undistributed net investment income (loss) of $(1,447) at 6/30/04 and $0 at 12/31/03) *Share information Shares sold 1,536 4,380 Shares redeemed (2,513) (8,208) Increase (decrease) in shares outstanding (977) (3,828) The accompanying notes are an integral part of these financial statements. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report (Unaudited) June 30, 2004 Notes to Financial Statements NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price New America Growth Fund (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 provide 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 The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. 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, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. 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 asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Trustees. Rebates and Credits Subject to best execution, the fund may direct certain security trades to brokers who have agreed to rebate a portion of the related brokerage commission to the fund in cash. Commission rebates are included in realized gain on securities in the accompanying financial statements and totaled $50,000 for the six months ended June 30, 2004. Additionally, the fund earns credits on temporarily uninvested cash balances at the custodian that reduce the fund's custody charges. Custody expense in the accompanying financial statements is presented before reduction for credits. Investment Transactions, Investment Income, and Distributions Income and expenses are recorded on the accrual basis. Dividends received from mutual fund investments are reflected as dividend income; capital gain distributions are reflected as realized gain/loss. Dividend income and capital gain distributions are recorded on the ex-dividend date. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the identified cost basis. Distributions to shareholders are recorded on the ex-dividend date. Income distributions are declared and paid on an annual basis. Capital gain distributions, if any, are declared and paid by the fund, typically on an annual basis. Other In the normal course of business, the fund enters into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is dependent on claims that may be made against the fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote. NOTE 2 - INVESTMENT TRANSACTIONS Purchases and sales of portfolio securities, other than short-term securities, aggregated $217,152,000 and $262,870,000, respectively, for the six months ended June 30, 2004. 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 under Subchapter M of the Internal Revenue Code 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 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. Financial records are not adjusted for temporary differences. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of June 30, 2004. The fund intends to retain realized gains to the extent of available capital loss carryforwards. As of December 31, 2003, the fund had $119,124,000 of unused capital loss carryforwards, of which $42,671,000 expire in 2009, and $76,453,000 expire in 2010. At June 30, 2004, the cost of investments for federal income tax purposes was $735,150,000. Net unrealized gain aggregated $196,700,000 at period-end, of which $212,009,000 related to appreciated investments and $15,309,000 related to depreciated investments. 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 average daily net assets to those of the group. At June 30, 2004, the effective annual group fee rate was 0.31%, and investment management fee payable totaled $504,000. 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., 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 $845,000 for the six months ended June 30, 2004, of which $162,000 was payable at period-end. The fund may invest in the T. Rowe Price Reserve Investment Fund and the 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 to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. The Reserve Funds pay no investment management fees. During the six months ended June 30, 2004, dividend income from the Reserve Funds totaled $47,000. T. Rowe Price New America Growth Fund - -------------------------------------------------------------------------------- Certified Semiannual Report INFORMATION ON PROXY VOTING - -------------------------------------------------------------------------------- A description of the policies and procedures that the T. Rowe Price New America Growth Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request by calling 1-800-225-5132. It also appears in the fund's Statement of Additional Information (Form 485B), which can be found on the SEC's Web site, www.sec.gov. Item 2. Code of Ethics. A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant's annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant's most recent fiscal half-year. Item 3. Audit Committee Financial Expert. Disclosure required in registrant's annual Form N-CSR. Item 4. Principal Accountant Fees and Services. Disclosure required in registrant's annual Form N-CSR. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 9. Submission of Matters to a Vote of Security Holders. Not applicable. Item 10. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely. (b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 11. Exhibits. (a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant's annual Form N-CSR. (2) Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. (3) Written solicitation to repurchase securities issued by closed-end companies: not applicable. (b) A certification by the registrant's principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. T. Rowe Price New America Growth Fund By: /s/ James S. Riepe James S. Riepe Principal Executive Officer Date: August 16, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James S. Riepe James S. Riepe Principal Executive Officer Date: August 16, 2004 By: /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer Date: August 16, 2004 EX-99.CERT 2 ex-99cert.txt 302 CERTIFICATIONS Item 11(a)(2). CERTIFICATIONS I, James S. Riepe, certify that: 1. I have reviewed this report on Form N-CSR of T. Rowe Price New America Growth Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 16, 2004 /s/ James S. Riepe James S. Riepe Principal Executive Officer CERTIFICATIONS I, Joseph A. Carrier, certify that: 1. I have reviewed this report on Form N-CSR of T. Rowe Price New America Growth Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 16, 2004 /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer EX-99.906 3 ex-99_906cert.txt 906 CERTIFICATIONS Item 11(b). CERTIFICATION UNDER SECTION 906 OF SARBANES-OXLEY ACT OF 2002 Name of Issuer: T. Rowe Price New America Growth Fund In connection with the Report on Form N-CSR for the above named issuer, the undersigned hereby certifies, to the best of his knowledge, that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: August 16, 2004 /s/ James S. Riepe James S. Riepe Principal Executive Officer Date: August 16, 2004 /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----