Prospectus
December 30, 2005
T. Rowe Price
New America Growth FundAdvisor Class
A stock fund seeking long-term capital appreciation through investments in companies believed by T. Rowe Price to be in the fast-growing sectors that define the "new America." This class of shares is sold only through financial intermediaries.
<R>The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
</R>Prospectus
®
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| About the Fund
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| Objective, Strategy, Risks, and Expenses
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| Other Information About the Fund
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| Information About Accounts in T. Rowe Price Funds
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| Pricing Shares and Receiving Sale Proceeds
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| Useful Information on Distributionsand Taxes
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| Transaction Procedures and Special Requirements
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| Distribution, Shareholder Servicing, and Recordkeeping Fees
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| More About the Fund
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| Organization and Management
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| Understanding Performance Information
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| Investment Policies and Practices
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| Disclosure of Fund Portfolio Information
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| Financial Highlights
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| Investing With T. Rowe Price
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| Account Requirements and Transaction Information
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| Purchasing Additional Shares
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| Exchanging and Redeeming Shares
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| Rights Reserved by the Funds
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| T. Rowe Price Privacy Policy
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Founded in 1937 by the late Thomas Rowe Price, Jr., T. Rowe Price Associates, Inc. (T. Rowe Price), and its affiliates managed $257.6 billion for more than nine million individual and institutional investor accounts as of September 30, 2005. T. Rowe Price is the fund`s investment manager.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve, or any other government agency, and are subject to investment risks, including possible loss of the principal amount invested.
T. Rowe Price New America Growth Fund
T.
;Rowe Price New America Growth FundAdvisor Class
1
About the Fund
About the Fund 1
objective, strategy, risks, and expenses
A word about the fund`s name and structure. The Advisor Class is a share class of its respective T. Rowe Price fund and is not a separate mutual fund. The Advisor Class shares are designed to be sold only through brokers, dealers, banks, insurance companies, and other financial intermediaries that provide various distribution and administrative services.
What is the fund`s objective?
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.
Wh
at is the fund`s principal investment strategy?
We invest primarily (at least 65% of total assets) in common stocks of U.S. companies operating in those sectors of the economy that, in the view of T. Rowe Price, are the fastest growing or have the greatest growth potential. In recent years, the U.S. economy has evolved rapidly, primarily because of the application of new technologies and scientific advances. Fast-growing companies can be found across an array of industries in today`s "new America." The choice of industry sectors will generally reflect such factors as the overall revenue growth of the component companies and the sector`s contribution to gross domestic product from year to year.
Holdings range from large-cap to small companies. In selecting stocks, we look for many characteristics, typically including but not limited to:
earnings growth rates that generally exceed that of the average company in the S&P 500 Stock Index;favorable company fundamentals, such as a strong balance sheet, sound business strategy, and promising
competitive positioning;effective management; orstock valuations, such as price/earnings or price/cash flow ratios, that seem reasonable relative to the company`s prospects.In pursuing its investment objective, the fund`s management has the discretion to purchase some securities that do not meet its normal investment criteria, as described above, when it perceives an unusual opportunity for gain. These special situations might arise when the fund`s management believes a security could increase in value for a variety of reasons, including a change in management, an
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extraordinary corporate event, or a temporary imbalance in the supply of or demand for the securities.
While most assets will be invested in U.S. common stocks, other securities may also be purchased, including foreign stocks, futures, and options, in keeping with fund objectives.
The fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities.
For details about the fund`s investment program, please see the Investment Policies and Practices section.
What are the main risks of investing in the fund?
The fund may entail above-average risk since growth companies pay few dividends and are typically more volatile than slower-growing companies with high dividends. Generally, stocks of companies in rapidly evolvingand often highly competitiveindustries are subject to significant price swings. Since
investors buy these stocks because of their expected superior earnings growth, earnings disappointments, even small ones, can result in sharp price declines. Changes in investor psychology from positive to negative can also cause growth stocks to lose value because of the high valuations they typically carry. The level of risk will be increased if the fund has significant exposure to small-company stocks, which tend to be more
volatile than large-company stocks because of their limited product lines, markets, or financial resources. In addition, picking long-term winners in the early stages of developing new industries is very difficult. Promising new fields tend to attract a great deal of competition and capital investment, and the increasingly fast pace of technological change can render an established company`s products and services obsolete virtually overnight.
As with all equity funds, this fund`s share price can fall because of weakness in the broad market, a particular industry, or specific holdings. The market as a whole can decline for many reasons, including adverse political or economic developments here or abroad, changes in investor psychology, or heavy institutional selling. The prospects for an industry or company may deteriorate because of a variety of factors, including disappointing earnings or changes in the competitive environment. In addition, our assessment of companies held in the fund may prove incorrect, resulting in losses or poor performance even in a rising market. Finally, the fund`s investment approach could fall out of favor with the invest
ing public, resulting in lagging performance versus other types of stock funds.
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Foreign stock holdings are subject to the risk that some holdings may lose value because of declining foreign currencies or adverse political or economic events overseas. Investments in futures and options, if any, are subject to additional volatility and potential losses.
As with any mutual fund, there can be no guarantee the fund will achieve its objective.
The fund`s share price may decline, so when you sell your shares, you may lose money.
How can I tell if the fund is appropriate for me?
Con
sider your investment goals, your time horizon for achieving them, and your tolerance for risk. If you seek long-term appreciation and can accept the potentially higher volatility of growth stocks, the fund could be an appropriate part of your overall investment strategy. This fund should not represent your complete investment program or be used for short-term trading purposes.
The fund can be used in both regular and tax-deferred accounts, such as
IRAs.
Equity investors should have a long-term investment horizon and be willing to wait out bear markets.
How has the fund performed in the past?
New America Growth Fund
Advisor Class began operations on December 30, 2005, and does not have a full calendar year of performance history. As a point of comparison, however, the following bar chart and table show calendar year returns for the oldest existing class of the New America Growth Fund. Because the New America Growth FundAdvisor Class is expected to have higher expenses than the oldest existing class of the New America Growth Fund, its performance, had it existed over the periods shown, would have been lower. The oldest existing class of the New America Growth Fund and the New America Growth FundAdvisor Class share the same portfolio.
The bar chart showing calendar year returns and the average annual total returns table indicate risk by illustrating how much returns can differ from one year to the next and how fund performance compares with that of a comparable market index. Fund past
returns (before and after taxes) are not necessarily an indication of future performance.
The fund can also experience short-term performance swings, as shown by the best and worst calendar quarter returns during the years depicted.
In addition, the average annual total returns table shows hypothetical after-tax returns to suggest how taxes paid by the shareholder may influence returns. Actual after-tax returns depend on each investor`s situation and may differ from
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those shown. After-tax returns are not relevant if the shares are held in a tax-deferred account, such as a 401(k) or IRA. During periods of fund losses, the post-liquidation after-tax return may exceed the fund`s other returns because the loss generates a tax benefit that is factored into the result.
Table 1 Average Annual Total Returns
| Periods ended December 31, 2004
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| 1 year
| 5 years
| 10 years
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New America Growth Fund
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Returns before taxes
| 11.10%
| -3.28%
| 8.96%
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Returns after taxes on distributions
| 11.10
| -4.03
| 7.56
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Returns after taxes on distributions and sale of fund shares
| 7.21
| -2.92
| 7.44
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S&P 500 Index
| 10.88
| -2.30
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font>12.07
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Lipper Multi-Cap Growth Funds Index
| 11.26
| -7.00
| 9.43
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Returns are based on changes in principal value, reinvested dividends, and capital gain distribu
tions, if any. Returns before taxes do not reflect effects of any income or capital gains taxes. Taxes are computed using the highest federal income tax rate. The after-tax returns reflect the rates applicable to ordinary and qualified dividends and capital gains effective in 2003. The returns do not reflect the impact of state and local taxes. Returns after taxes on distributions reflect the taxed re
turn on the payment of dividends and capital gains. Returns after taxes on distributions and sale of fund shares assume the shares were sold at period-end and, therefore, are also adjusted for any capital gains or losses incurred by the shareholder. Market indexes do not include exp
enses, which are deducted from fund returns, or taxes.
S&P 500 Index tracks the stocks of 500 U.S. companies.
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What fees and expenses will I pay?
The numbers in the next table provide an estimate of how much it will cost to operate the Advisor Class for a year. These are costs you pay indirectly because they are deducted from net assets before the daily share price is calculated.
Table 2 Fees and Expenses of the Advisor Class* Annual fund operating expenses (expenses that are deducted from fund assets)
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Management fee
| 0.66%
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Distribution and service (12b-1) fees
| 0.25%
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Other expenses
| 0.19%
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Total annual fund operating expenses
| 1.10%a
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*Redemption proceeds of less than $5,000 sent by wire are subject to a $5 fee paid to the fund.
aTo limit the class`s expenses during its initial period of operations, T. Rowe Price contractually obligated itself to bear any expenses and/or waive its fees through April 30, 2008, which would cause the class`s
ratio of expenses to average net assets to exceed 1.10%. Fees paid or assumed or fees waived under this agreement are subject to reimbursement to T. Rowe Price by the fund whenever the class`s expense ratio is below 1.10%; however, no reimbursement will be made more than three years after any waiver or payment, or if it would result in the expense ratio exceeding 1.10%. Any amounts reimbursed will have the effect of increasing fees otherwise paid by the class.
Example. The following table gives you an idea of how expense ratios may translate into dollars and helps you to compare the cost of investing in this class with that of other mutual funds. Although your actual costs may be higher or lower, the table shows how much you would pay if operating expenses remain the same, the expense limitation currently in place is not renewed, you invest $10,000, earn a 5% annual return, hold the investment for the following periods, and then redeem:
1 year
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| 10 years
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<
td style="text-indent:0.0";">$112
$350
| $606
| $1,340
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other INFORMATION about the fund
What are some of the fund`s potential rewards?
The fund offers the potential for significant, long-term growth of capital by seeking to participate in the growth of companies positioned to benefit from the dynamic technological, social, medical, economic, and business developments that are defining the "new America." The fund has the flexibility to seek investments in companies of any size in any sector believed by T. Rowe Price to offer the greatest growt
h potential.
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What is meant by a "growth" investment approach?
Thomas Rowe Price, Jr., pioneered the growth stock theory of investing over 60 years ago. It is based on the premise that inflation represents a more serious long-term threat to an investor`s portfolio than stock market fluctuations or recessions. Mr. Price believed that when a company`s earnings grow faster than both inflation and the economy in general, the market will eventually reward its long-term earnings growth with a higher stock price. However, investors should be aware that, during periods of adverse economic and market conditions, stock prices may fall despite favorable earnings trends.
Growth investors look for companies with above-average earnings gains.
Is there other information I can review before making a decision?
Investment Policies and Practices in Section 3 discusses various types of portfolio securities the fund may purchase as well as type
s of management practices the fund may use.
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Information About Accounts in T. Rowe Price Funds
Information About Accounts in T. Rowe Price Funds 2
As a T. Rowe Price share
holder, you will want to know about the following policies and procedures that apply to all Advisor Class accounts.
Pricing Shares and Receiving Sale Proceeds
How and when shares are priced
The share price (also called "net asset value" o
r NAV per share) for each class of shares is calculated at the close of the New York Stock Exchange, normally 4 p.m. ET, each day that the exchange is open for business. To calculate the NAV, the fund`s assets are valued and totaled, liabilities are subtracted, and each class`s
proportionate share of the balance, called net assets, is divided by the number of shares outstanding of that class. Market values are used to price stocks and bonds. Market values represent the prices at which securities actually trade or evaluations based on the judgment of the fund`s pricing services. If a market value for a security is not available, the fund will make a good faith effort to assign a fair value to the security. This value may differ from the value the fund receives upon sale of the securities. Investments in mutual funds are valued at the closing NAV per share of the mutual fund on the day of valuation.
Non-U.S. equity securities are valued on the basis of their most recent closing market prices at 4 p.m. ET except under the circumstances described below. Most foreign markets close before 4 p.m. For securities primarily traded in the Far East, for example, the most recent closing prices may be as much as 15 hours old at 4 p.m. If a fund determines that developments between the close of the foreign market and 4 p.m. ET will, in its judgment, materially affect the value of some or all of the fund`s securities,
the fund will adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of 4 p.m. ET. In deciding whether to make these adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.
S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. A fund may also fair value securities in other situations, for example, when a particular foreign market is closed but the fund is open. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day`s opening prices in the same markets, and adjusted prices.
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How your purchase, sale, or exchange price is determined
Advisor Class shares are intended for purchase, and may be held only, through various third-party intermediaries including brokers, dealers, banks, insurance companies, retirement plan recordkeepers, and others. Consult your intermediary to find out about how to purchase, sell, or exchange your shares, trade deadlines, and other applicable procedures for these transactions. The intermediary may charge a fee for its services.
The fu
nd may have an agreement with your intermediary that permits the intermediary to accept orders on behalf of the fund until 4 p.m. ET. In such cases, if your order is received by the intermediary in correct form by 4 p.m. ET, transmitted to the fund, and paid for in accordance with the agreement, it will be priced at the next NAV computed after the intermediary received your order.
Note: The time at which transactions and shares are priced and the time until which orders are accepted by the fund or an intermediary may be changed in case of an emergency or if the New York Sto
ck Exchange closes at a time other than 4 p.m. ET.
How proceeds are received
Normally, the fund transmits proceeds to intermediaries for redemption orders received in correct form on either the next or third business day after receipt, d
epending on the arrangement with the intermediary. Under certain circumstances and when deemed to be in the fund`s best interests, proceeds may not be sent to intermediaries for up to seven calendar days after receipt of the redemption order. You must contact your intermediary about procedures for receiving your redemption proceeds.
Contingent Redemption Fee
Short-term trading can disrupt a fund`s investment program and create additional costs for long-term shareholders. For these reasons, certain T. Rowe Price funds, listed below, assess a fee on redemptions (including exchanges) of fund shares held for less than the period shown, which reduces the proceeds from such redemptions by the amounts indicated:
T. Rowe Price Funds With Redemption Fees
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Fund name
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High YieldAdvisor Class
| 1%
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| 90 days/3 months
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International BondAdvisor Class
| 2%
| 90 days/3 months
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International Growth & IncomeAdvisor Class
| 2%
| 90 days/3 months
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International StockAdvisor Class
| 2%
| 90 days/3 months
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Real EstateAdvisor Class
| 1%
| 90 days/3 months
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Small-Cap ValueAdvisor Class
| 1%
| 90 days/3 months
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Redemption fees are paid to a fund to deter short-term trading, offset costs, and protect the fund`s long-term shareholders. All persons holding shares of a T. Rowe Price fund that imposes a redemption fee are subject to the fee, whether the person is holding shares directly with a T. Rowe Price fund, through a retirement plan for which T. Rowe Price serves as recordkeeper, or indirectly through an intermediary, such as a broker, bank, investment adviser, recordkeeper for retirement plan participants, or any other third party.
*Computation of holding period
When an investor sells shares of a fund that assesses a redemption fee, T. Rowe Price will use the "first-in, first-out" (FIFO) method to determine the holding period for the shares sold. Under this method, the date of redemption or exchange will be compared with the earliest purchase date of shares held in the account. A redemption fee will be charged on shares sold before the end of the required holding period.
If you purchase shares through an intermediary, consult your intermediary to determine how the holding period (for example, 90 days versus three months) will be applied.
Transactions not subject to redemption fees
The T. Rowe Price funds will not assess a redemption fee with respect to certain transactions. As of the date of this prospectus, the following shares of T. Rowe Price funds will not be subject to redemption fees:
1.Shares redeemed via an automated systematic withdrawal plan;
2.Shares redeemed through or used to establish an automated, nondiscretionary rebalancing or asset allocation program, if approved in writing by T. Rowe Price;
3.Shares purchased by the reinvestment of dividends or capital gain distributions;*
4.Shares converted from one share class to another share class of the same fund;*
5.Shares redeemed by a fund (e.g., for failure to meet account minimums or to cover various fees such as fiduciary fees);
6.Shares purchased by rollover and changes of account registration within the same fund;*
7.Shares redeemed to return an excess contribution in an IRA account;
8.Shares purchased by a fund-of-fund product, if approved in writing by T. Rowe Price;
9.Shares transferred to T. Rowe Price or a third party intermediary acting as a service provider when the age of the shares cannot be determined systematically;*
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10.Shares redeemed in retirement plans or other products that restrict trading to no more frequently than once per quarter, if approved in writing by T. Rowe Price.
*Subsequent exchanges of these shares into funds that assess redemption fees will subject such shares to the fee.
Redemption fees on shares held in retirement plans
If shares are held in a retirement plan, generally redemption fees will be assessed only on shares redeemed by exchange that were originally purchased by exchange. However, redemption fees may apply to transactions other than exchanges depending on how shares of the plan are held at T. Rowe Price or how the fees are applied by your plan`s recordkeeper. To determine which of your transactions are subject to redemption fees, you should contact T. Rowe Price or your plan recordkeeper.
Omnibus accounts
If your shares are held through an intermediary in an omnibus account,
T. Rowe Price relies on the intermediary to assess the redemption fee on
underlying shareholder accounts. T. Rowe Price seeks to identify intermediaries
establishing omnibus accounts and to enter into agreements requiring the inter
mediary to assess the redemption fees. There are no assurances that T. Rowe Price will be successful in identifying all intermediaries or that the intermediaries will properly assess the fees.
Certain intermediaries may not apply the exemptions listed above to the redemption fee policy; all redemptions by pers
ons trading through such intermediaries may be subject to the fee. Persons redeeming shares through an intermediary should check with their respective intermediary to determine which transactions are subject to the fees.
Implementation
Recordkeepers for retirement plan participants who are unable to implement redemption fees due to system limitations must either (1) implement short-term trading restrictions approved by T. Rowe Price until they have the system capabilities to assess the fees or (2) set forth an imple
mentation plan acceptable to T. Rowe Price. Any person purchasing shares through a retirement plan recordkeeper should check with their recordkeeper to determine when purchases will be subject to redemption fees.
Shares held or purchased prior to January 1, 2005, are subject to the terms for holding periods and early redemption as set forth in the prospectus in effect when the shares were originally purchased. For example, shares of the T. Rowe Price International Stock FundAdvisor Class purchased on December 31, 2004, would be subject to a one-year holding period and
2% redemption fee if sold within one year; shares of the fund purchased on January
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3, 2005, would be subject to the new 90-day/three-month holding period and a 2% redemption fee if sold within the 90-day/three-month holding period.
Useful Information on Distributions and Taxes
All net investment income and realized capital gains are distributed to shareholders.
Dividends and Other Distributions
Dividend and capital gain distributions are reinvested in additional fund shares in your account unless you select another option on your New Account Form. Reinvesting distributions results in compounding, that is, receiving income dividends and capital
gain distributions on a rising number of shares.
Interest will not accrue on amounts represented by uncashed distributions or redemption checks.
The following table provides details on dividend payments:
Table 3 Dividend Payment Schedule Fund
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Bond funds
| Shares normally begin to earn dividends on the business day after payment is received by T. Rowe Price.Declared daily and paid on the first business day of each month.
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These stock funds only:Equity Income Fund Advisor ClassReal Estate Fund Advisor Class
| Declared quarterly, if any, in March, June, September, and December.Must be a shareholder on the record date.
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Retirement Funds:Retirement Income Fund Advisor ClassAll others
| Shares normally begin
to earn dividends on the business day after payment is received by T. Rowe Price.Paid on the first business day of each month.Declared annually, if any, generally in December.Must be a shareholder on the record date.
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Other stock funds
| Declared annually, if any, generally in December.Must be a shareholder on the record date.
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If you purchase and sell your shares through an intermediary, consult your intermediary to determine when your shares begin and stop accruing dividends; the information described above may vary.
Capital gain payments
A capital gain or loss is the difference between the purchase and sale price
of a security.If a fund has net capital gains for the year (after subtracting any capital losses), they are usually declared and paid in December to shareholders of record on a specified date that month. If a second distribution is necessary, it is paid the follow
ing year.Tax Information
You should contact your intermediary for the tax information that will be sent to you and reported to the IRS.
If you invest in the fund through a tax-deferred retirement account, you will not be subject to tax on dividends and distr
ibutions from the fund or the sale of fund shares if those amounts remain in the tax-deferred account.
If you invest in the fund through a taxable account, you will generally be subject to tax when:
You sell fund shares, including an exchange from
one fund to another.The fund makes a distribution to your account.For individual shareholders, a portion of ordinary dividends representing "qualified dividend
income" received by the fund may be subject to tax at the lower rate applicable to long-term capital gains, rather than ordinary income. You may report it as "qualified dividend income" in computing your taxes provided you have held the fund shares on which the dividend was paid for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date. Ordinary dividends that do not qualify for this lower rate are generally taxable at the investor`s marginal income tax rate. This includes the portion of ordinary dividends derived from interest, short-term capital gains, distributions from
certain nonqualified foreign corporations, and dividends received by the fund from stocks that were on loan. Little, if any, of the ordinary dividends paid by the Real Estate FundAdvisor Class or the bond fund Advisor Classes is expected to qualify for this lower rate.
For corporate shareholders, a portion of ordinary dividends may be eligible for the 70% deduction for dividends received by corporations to the extent the fund`s income consists of dividends paid by U.S. corporations. Little, if any, of th
e ordinary dividends paid by the international or bond fund Advisor Classes is expected to qualify for this deduction.
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Note: Regular monthly dividends from the Tax-Free Income FundAdvisor Class are expected to be exempt from federal income taxes. Exemption is not guaranteed since the fund has the right under certain conditions to invest in nonexempt securities. You must report your total tax-free income on IRS Form 1040. The IRS uses this information to help determine the tax status of any Social Security payments you may have received during the year. Tax-e
xempt dividends paid to Social Security recipients may increase the portion of benefits that is subject to tax.
If the Tax-Free Income Fund invests in certa
in "private activity" bonds, shareholders who are subject to the alternative minimum tax (AMT) must include income generated by these bonds in their AMT calculation. The portion of this fund`s income dividend that should be included in your AMT calculation, if any, will be reported to you in January.
Taxes on fund redemptions
When you sell shares in any fund, you may realize a gain or loss. An exchange from one fund to another is a sale for tax purposes.
Taxes on fund distributions
The tax treatment of a capital gain distribution is determined by how long the fund held the portfolio securities, not how long you held the shares in the fund. Short-term (one year or less) capital gain distributions are taxable at the same rate as ordinary income, and gains on securities held more than one year are taxed at the lower rates applicable to long-term capital gains. If you realized a loss on the sale or exchange of fund shares that you held six months or less, your short-term capital loss must be reclassified as a long-term capital loss to the extent of any long-term capital gain distributions received during the period you held the shares. If you realize a loss on the sale or exchange of Tax-Free Income FundAdvisor Class shares held six months or less, your capital loss is reduced by the tax-exempt dividends received on those shares. For funds investing in foreign securities, distributions resulting from the sale of certain foreign currencies, currency contracts, and the currency portion of gains on debt securities are taxed as ordinary income. Net foreign currency losses may cause monthly or quarterly dividends to be reclassified as a return of capital.
If the fund qualifies and elects to pass through nonrefundable foreign taxes paid to foreign governments during the year, your portion of such taxes will be reported to you as taxable income. However, you may be able to claim an
offsetting credit or deduction on your tax return for those amounts. There can be no assurance that a fund will meet the requirements to pass through foreign income taxes paid. For the Tax-Free Income FundAdvisor Class, gains realized on the sale of market discount bonds with maturities beyond one year may be treated as ordinary income and canno
t be offset by other capital losses. To the
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extent the fund invests in these securities, the likelihood of a taxable gain distribution will be increased.
Retirement Funds
Distributions by the underlying funds and changes in asset allocations may result
in taxable distributions of ordinary income or capital gains.
Tax consequences of hedging
Entering into certain options, futures, swaps, and forward foreign exchange contracts and transactions may result in the application of the mark-to-market and straddle provisions of the Internal Revenue Code. These provisions could result in a fund being required to distribute gains on such transactions even though it did not close the contracts during the year or receive cash to pay such distributions. The fund may not be able to reduce its distributions for losses on such transactions to the extent of unrealized gains in offsetting positions.
Distributions are taxable whether reinveste
d in additional shares or received in cash.
Tax effect of buying shares before an income dividend or capital gain distribution
If you buy shares shortly before or on the "record date" the date that establishes you as the person to receive the upcoming distribution you may receive a portion of the money you just invested in the form of a taxable distribution. Therefore, you may wish to find out a fund`s record date before investing. Of course, a fund`s share price may, at any time, reflect undistributed capital gains or income and unrealized appreciation, which may result in future taxable distributions. Such distributions can occur even in a year when the fund has a negative return.
Transaction Procedures and Special Requirements
Purchase Conditions for Intermediaries
Nonpayment
If the fund receives a check or ACH transfer that does not clear or the payment is not received in a timely manner, your purchase may be canceled. The intermediary will be responsible for any losses or expenses incurred by the fund or transfer agent. The fund and its agents have the right to reject or cancel any purchase, exchange,
or redemption due to nonpayment.
U.S. dollars
All purchases must be paid for in U.S. dollars; checks must be drawn on U.S. banks.
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