N-Q 1 poi_nag.txt N-Q~NEW AMERICA GROWTH FUND Item 1. Schedule of Investments T. Rowe Price New America Growth Fund Unaudited March 31, 2005 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) COMMON STOCKS 98.5% CONSUMER DISCRETIONARY 18.3% Automobiles 0.8% Harley-Davidson 125,000 7,220 7,220 Hotels, Restaurants & Leisure 3.9% International Game Technology 500,000 13,330 Outback Steakhouse 95,000 4,350 PF Chang's China Bistro * 115,000 6,877 Royal Caribbean Cruises 210,000 9,385 33,942 Household Durables 0.8% Harman International 85,000 7,519 7,519 Internet & Catalog Retail 0.6% Amazon.com * 20,000 685 eBay * 130,000 4,844 5,529 Leisure Equipment & Products 1.5% Brunswick 275,000 12,884 12,884 Media 6.0% Getty Images * 215,000 15,289 Liberty Media, Class A * 1,000,000 10,370 News Corporation, Class A 270,000 4,568 Scripps, Class A 242,500 11,822 Viacom, Class B 300,000 10,449 52,498 Multiline Retail 2.1% Family Dollar Stores 340,000 10,322 Kohl's * 150,000 7,745 18,067 Specialty Retail 2.6% Home Depot 75,000 2,868 PETsMART 410,000 11,787 Staples 255,000 8,015 22,670 Total Consumer Discretionary 160,329 CONSUMER STAPLES 3.4% Food & Staples Retailing 3.4% Sysco 480,000 17,184 Wal-Mart 250,000 12,527 Total Consumer Staples 29,711 ENERGY 4.4% Energy Equipment & Services 3.9% Baker Hughes 165,000 7,341 Cooper Cameron * 115,000 6,579 Diamond Offshore Drilling 100,000 4,990 Smith International 245,000 15,369 34,279 Oil & Gas 0.5% Murphy Oil 45,000 4,443 4,443 Total Energy 38,722 FINANCIALS 10.4% Capital Markets 5.0% Eaton Vance 145,000 3,399 Franklin Resources 100,000 6,865 Goldman Sachs 55,000 6,049 Investors Financial Services 90,000 4,402 Legg Mason 75,000 5,860 Lehman Brothers 70,000 6,591 Morgan Stanley 50,000 2,863 State Street 180,000 7,870 43,899 Diversified Financial Services 1.0% Citigroup 200,000 8,988 8,988 Insurance 4.4% AFLAC 125,000 4,658 American International Group 145,000 8,034 Assurant 210,000 7,077 Genworth Financial, Class A 162,700 4,478 Hartford Financial Services 100,000 6,856 Progressive Corporation 77,500 7,111 38,214 Total Financials 91,101 HEALTH CARE 15.2% Biotechnology 5.0% Amgen * 242,500 14,116 Amylin Pharmaceuticals * 135,000 2,361 Celgene * 55,000 1,873 Cephalon * 130,000 6,088 Genentech * 117,000 6,623 Gilead Sciences * 170,000 6,086 Martek Biosciences * 25,000 1,455 Neurocrine Biosciences * 60,000 2,284 OSI Pharmaceuticals * 60,000 2,480 43,366 Health Care Equipment & Supplies 3.6% Boston Scientific * 175,000 5,126 Medtronic 295,000 15,030 ResMed * 107,600 6,068 Stryker 127,500 5,688 31,912 Health Care Providers & Services 3.9% Henry Schein * 150,000 5,376 Laboratory Corporation of America * 120,000 5,784 Quest Diagnostics 96,000 10,092 UnitedHealth Group 137,500 13,115 34,367 Pharmaceuticals 2.7% Atherogenics * 75,000 982 Elan ADR * 175,000 567 Johnson & Johnson 160,000 10,746 Pfizer 375,000 9,851 Sepracor * 30,000 1,722 23,868 Total Health Care 133,513 INDUSTRIALS & BUSINESS SERVICES 13.2% Aerospace & Defense 1.3% Lockheed Martin 185,000 11,296 11,296 Air Freight & Logistics 1.9% Expeditors International of Washington 77,500 4,150 UPS, Class B 175,000 12,730 16,880 Airlines 0.8% Southwest Airlines 470,000 6,693 6,693 Commercial Services & Supplies 4.7% Apollo Group, Class A * 80,000 5,925 ChoicePoint * 385,000 15,442 Cintas 130,000 5,370 Consolidated Graphics * 110,000 5,786 Education Management * 300,000 8,385 40,908 Industrial Conglomerates 3.2% GE 430,000 15,506 Roper Industries 190,000 12,445 27,951 Machinery 1.3% Deere 175,000 11,748 11,748 Total Industrials & Business Services 115,476 INFORMATION TECHNOLOGY 31.6% Communications Equipment 3.0% Cisco Systems * 925,000 16,548 Juniper Networks * 250,000 5,515 Research In Motion * 50,000 3,821 25,884 Computers & Peripherals 3.0% Dell * 695,000 26,702 26,702 Electronic Equipment & Instruments 1.9% CDW 245,000 13,887 Dolby Laboratories, Class A * 100,000 2,350 16,237 Internet Software & Services 0.5% IAC/InterActiveCorp * 200,000 4,454 4,454 IT Services 7.7% Affiliated Computer Services, Class A * 210,000 11,180 Automatic Data Processing 140,000 6,293 Certegy 305,000 10,559 First Data 322,500 12,677 Fiserv * 87,500 3,483 Iron Mountain * 325,000 9,373 Paychex 200,000 6,564 SunGard Data Systems * 225,000 7,763 67,892 Semiconductor & Semiconductor Equipment 7.3% Altera * 225,000 4,450 Analog Devices 260,900 9,429 Intel 555,000 12,893 Linear Technology 175,800 6,735 Maxim Integrated Products 110,000 4,496 Microchip Technology 325,000 8,453 Texas Instruments 250,000 6,372 Xilinx 382,000 11,166 63,994 Software 8.2% Adobe Systems 90,000 6,045 Intuit * 305,000 13,350 Jack Henry & Associates 560,000 10,074 Mercury Interactive * 170,000 8,055 Microsoft 715,000 17,282 Red Hat * 175,000 1,909 SAP ADR 125,000 5,010 Symantec * 485,000 10,345 72,070 Total Information Technology 277,233 MATERIALS 0.4% Metals & Mining 0.4% Nucor 65,000 3,741 Total Materials 3,741 TELECOMMUNICATION SERVICES 1.6% Diversified Telecommunication Services 0.6% Sprint 215,000 4,891 4,891 Wireless Telecommunication Services 1.0% Nextel Communications, Class A * 250,000 7,105 Nextel Partners, Class A * 85,000 1,867 8,972 Total Telecommunication Services 13,863 Total Common Stocks (Cost $720,949) 863,689 SHORT-TERM INVESTMENTS 0.7% Money Market Fund 0.7% T. Rowe Price Reserve Investment Fund, 2.67% #+ 5,842,316 5,842 Total Short-Term Investments (Cost $5,842) 5,842 Total Investments in Securities 99.2% of Net Assets (Cost $726,791) $ 869,531 (1) Denominated in U.S. dollars unless otherwise noted # Seven-day yield * Non-income producing + Affiliated company - See Note 3 ADR American Depository Receipts The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price New America Growth Fund Unaudited March 31, 2005 Notes To Portfolio of Investments 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. 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. 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. Investment Transactions Investment transactions are accounted for on the trade date. NOTE 2 - FEDERAL INCOME TAXES At March 31, 2005, the cost of investments for federal income tax purposes was $726,791,000. Net unrealized gain aggregated $142,740,000 at period-end, of which $164,846,000 related to appreciated investments and $22,106,000 related to depreciated investments. 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 March 31, 2005. NOTE 3 - RELATED PARTY TRANSACTIONS 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 and affiliates of the fund. 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 three months ended March 31, 2005, dividend income from the Reserve Funds totaled $28,000, and the value of shares of the Reserve Funds held at March 31, 2005 and December 31, 2004 was $5,842,000 and $23,279,000, respectively. Item 2. 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-Q was recorded, processed, summarized, and reported timely. (b) The registrant's principal executive officer and principal financial officer are aware of no change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. 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. 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 May 18, 2005 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 May 18, 2005 By /s/ Joseph A. Carrier ----------------------------------- Joseph A. Carrier Principal Financial Officer Date May 18, 2005