-----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, CiOfOFXW11s8mPS1i06aPHLVt4gbbdV/CK/OJM4OBQpjuD4xZXsj0Ab6dab5CjWU MHXS8Bd2xZlQeLagfcn60w== 0000773485-99-000004.txt : 19990302 0000773485-99-000004.hdr.sgml : 19990302 ACCESSION NUMBER: 0000773485-99-000004 CONFORMED SUBMISSION TYPE: 497K1 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICE T ROWE NEW AMERICA GROWTH FUND CENTRAL INDEX KEY: 0000773485 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497K1 SEC ACT: SEC FILE NUMBER: 002-99122 FILM NUMBER: 99554343 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 497K1 1 FUND PROFILE May 1, 1999 T. Rowe Price New America Growth Fund A stock fund seeking long-term capital appreciation through investments primarily in growth companies operating in service industries. This profile summarizes key information about the fund that is included in the fund's prospectus. The fund's prospectus includes additional information about the fund, including a more detailed description of the risks associated with investing in the fund that you may want to consider before you invest. You may obtain the prospectus and other information about the fund at no cost by calling 1-800-638-5660, or by visiting our Web site at www.troweprice.com. 1. What is the fund's objective? The fund seeks to provide long-term growth of capital by investing primarily in the common stocks of U.S. growth companies operating in service industries. 2. What is the fund's principal investment strategy? We invest most of fund assets in service companies we believe are above-average performers in their fields. We focus on service companies, which represent more than half of the U.S. economy, because of their growth potential and because they may have advantages over manufacturing companies, including lower fixed costs, lower need for capital, and smaller inventories. Companies that derive a majority of their revenues or earnings from service-related activities include consumer services (retailing, entertainment, leisure, media and telecom- munications, etc.), business services (health care, computer services, etc.), and financial services (insurance, banking, investment management, etc.). Holdings range from large-cap to small companies. Stock selection reflects our attempt to identify companies we expect to have superior earnings growth, and also our judgment of each company's fundamentals and stock valuation. We also take advantage of our ability to invest up to 25% of the fund in nonservice growth companies as opportunities occur. While most of the fund's assets will be invested in U.S. common stocks, we may also invest in other securities, including foreign securities, futures, and options, in keeping with the fund's objective. The fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities. Further information about the fund's investments, including a review of market conditions and fund strategies and their impact on performance, is available in the annual and semiannual shareholder reports. To obtain free copies of any of these documents, call 1-800-638-5660. 3. What are the main risks of investing in the fund? 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. The fund may entail above-average risk since growth companies paying few dividends are generally more volatile than slower-growing companies with high dividends. The level of risk will be increased if the fund has significant exposure to smaller companies, which tend to be more volatile than those of large companies because of their limited product lines, markets, or financial resources. Finally, trends which we believe favor service companies may reverse, leading to falling share prices. To the extent that the fund invests in foreign securities, it is also subject to the risk that some holdings may lose value because of declining foreign currencies or adverse political or economic events overseas. To the extent the fund uses futures and options, it is exposed to additional volatility and potential losses. As with any mutual fund, there can be no guarantee the fund will achieve its objective. . The fund's share price may decline, so when you sell your shares, you may lose money. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. 4. How can I tell if the fund is appropriate for me? Consider your investment goals, your time horizon for achieving them, and your tolerance for risk. If you seek long-term appreciation and can accept the potentially higher volatility of growth stocks, the fund could be an appropriate part of your overall investment strategy. This fund should not represent your complete investment program or be used for short-term trading purposes. The fund can be used in both regular and tax-deferred accounts, such as IRAs. . Equity investors should have a long-term investment horizon and be willing to wait out bear markets. 5. How has the fund performed in the past? The bar chart and the average annual total return table indicate risk by illustrating how much returns can differ from one year to the next. The fund's past performance is no guarantee of its future returns. Calendar Year Total Returns
1989 38.40% 1990 -12.20 1991 61.90 1992 9.89 1993 17.44 1994 -7.43 1995 44.31 1996 20.01 1997 21.10 1998 17.89 -----------------------------------------
The fund can also experience short-term performance swings. The best calendar quarter return during the years depicted in the chart was 27.69% in the fourth quarter of 1998, and the worst was -25.21% in the third quarter of 1990. Average Annual Total Returns
Periods ended December 31, 1998 ---------------------------- 1 year 5 years 10 years New America Growth Fund 17.89% 18.01% 19.24% ----------------------------------- S&P 500 Stock Index 28.57 24.06 19.21 --------------------------------------------------------------------
These figures include changes in principal value, reinvested dividends, and capital gain distributions, if any. 6. What fees or expenses will I pay? The fund is 100% no load. There are no fees or charges to buy or sell fund shares, reinvest dividends, or exchange into other T. Rowe Price funds. There are no 12b-1 fees. Fees and Expenses of the Fund
Annual fund operating expenses (expenses that are deducted from fund assets) --------------------------------------------------------------------------------- Management fee 0.67% Other expenses 0.28% Total annual fund 0.95% operating expenses ---------------------------------------------------------------------------------
Example. The following table gives you a rough idea of how expense ratios may translate into dollars and helps you to compare the cost of investing in this fund with that of other funds. Although your actual costs may be higher or lower, the table shows how much you would pay if operating expenses remain the same, you invest $10,000, you earn a 5% annual return, and you hold the investment for the following periods:
1 year 3 years 5 years 10 years $97 $303 $525 $1,166 ----------------------------------------------------
7. Who manages the fund? The fund is managed by T. Rowe Price Associates, Inc. (T. Rowe Price). Founded in 1937, T. Rowe Price and its affiliates manage investments for individual and institutional accounts. The company offers a comprehensive array of stock, bond, and money market funds directly to the investing public. John H. Laporte manages the fund day-to-day and has been chairman of its Investment Advisory Committee since its inception in 1985. He joined T. Rowe Price in 1976 and has been managing investments since 1984. The following questions and answers about buying and selling shares and services do not apply to employer-sponsored retirement plans. If you are a participant in one of these plans, please call your plan's toll-free number for additional information. 8. How can I purchase shares? Fill out and return a New Account Form in the postpaid envelope, along with your check. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts or transfers to minors) or $50 if investing through Automatic Asset Builder. The minimum subsequent investment is $100 ($50 for IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also open an account by bank wire, by exchanging from another T. Rowe Price fund, or by transferring assets from another financial institution. 9. How can I sell shares? You may redeem or sell any portion of your regular or IRA account on any business day. Simply write to us or call. You can also access your account at any time via Tele*Access /(R)/ or our Web site. We offer free exchange among our entire family of domestic and international funds. Restrictions may apply in special circumstances, and some redemption requests need a signature guarantee. A $5 fee is charged for wire redemptions under $5,000. 10. When will I receive income and capital gain distributions? The fund distributes income annually and net capital gains, if any, at year-end. For regular accounts, income and short-term gains are taxable at ordinary income rates, and long-term gains are taxable at the capital gains rate. Distributions are reinvested automatically in additional shares unless you choose another option, such as receiving a check. Distributions paid to IRAs and employer-sponsored retirement plans are automatically reinvested. 11. What services are available? A wide range, including but not limited to: . retirement plans for individuals and large and small businesses; . automated information and transaction services by telephone or computer; . electronic transfers between fund and bank accounts; . automatic investing and automatic exchange; . brokerage services; . asset manager accounts. To Open a Mutual Fund, Asset Manager, or Brokerage Account Investor Services 1-800-638-5660 For Information on Existing Accounts Shareholder Services 1-800-225-5132 For Yields and Prices and Account Transactions Tele*Access/(R)/ 1-800-638-2587 24 hours, 7 days For Fund Information and Account Transactions on the Internet www.troweprice.com Investor Centers 101 East Lombard St. Baltimore, MD 21202 T. Rowe Price Financial Center 10090 Red Run Blvd. Owings Mills, MD 21117 Farragut Square 900 17th Street, N.W. Washington, D.C. 20006 ARCO Tower 31st Floor 515 South Flower St. Los Angeles, CA 90071 4200 West Cypress St. 10th Floor Tampa, FL 33607 Headquarters 100 East Pratt Street Baltimore, MD 21202 NEW ACCOUNT FORM (LOGO) You may purchase shares of a T. Rowe Price fund after reviewing the information in the profile or after requesting and reviewing the fund's prospectus (and other information). Please note: an IRA will not be established using this form. If you want to open an IRA, call 1-800-638-5660 to request an IRA New Account Form. Mail this form to: T. Rowe Price P.O. Box 17300, Baltimore, MD 21298-9353 For help with this form, call toll free 1-800-638-5660. Please do not remove the mailing label from this form. 1 PROVIDE YOUR TAX IDENTIFICATION NUMBER Owner's or Minor's Social Security or Tax ID Number (Use Minor's Social Security Number for Custodial Account) _ _ _ _ _ _ _ _ _ Joint Owner's or Custodian's Social Security or Tax ID Number _ _ _ _ _ _ _ _ _ 2 DESIGNATE TYPE OF ACCOUNT AND OWNER NAME(S) Please print in CAPITAL LETTERS. Choose one: __ Individual or Joint Account.* *Joint tenancy with right of survivorship unless you instruct otherwise. Owner's Name (First, Middle Initial, Last) ________________________________ Title: Mr. Ms. Mrs. Dr. Joint Owner's Name (First, Middle Initial, Last) ________________________________ Title: Mr. Ms. Mrs. Dr. __ Custodial Account. Uniform Gift or Transfer to Minors Act (UGMA or UTMA) Custodian's Name (First, Middle Initial, Last) ________________________________ Minor's Name (First, Middle Initial, Last) ________________________________ State of Residence (Minor's or Custodian's) ________________________________ __ Trust, Corporation, Business, or Other Entity Account.* *Please attach the first and last pages of the trust agreement or a copy of the corporate resolution. Name of Trust, Corporation, or Other Entity _________________________________________________________ Trustee Names or Type of Entity ________________________________________________________ Name of Trust Beneficiary (Optional) Date of Trust Agreement ________________ __-__-__ month day year __ Check this box if your organization is incorporated or tax-exempt under Section 501(a) of the Internal Revenue Code, a qualified retirement plan under Section 401(a), or a custodial account under Section 403(b)(7), and you DO NOT want us to file information returns on your behalf. 3 PROVIDE YOUR ADDRESS Street Address or P.O. Box __________________________________________________ __________________________________________________ City State ____________________ __ ZIP Code _ _ _ _ _ - _ _ _ _ 4 PROVIDE OTHER ACCOUNT DATA Daytime Phone Ext. _ _ _ _ _ _ - _ _ _ _ _ _ _ _ Evening Phone Ext. _ _ _ _ _ _ - _ _ _ _ _ _ _ _ Date of Birth (Owner/Minor) Date of Birth (Joint Owner/Custodian) _ _ - _ _ - _ _ _ _ - _ _ - _ _ month day year month day year __ U.S. Citizen __ Resident Alien __ Nonresident Alien. My permanent foreign address for tax purposes is: _____________________________________ _____________________________________ Owner's Occupation / Employer Name (Optional) _____________________________________ Employer Address (Optional) __________________________________________________________________________ 5 SELECT YOUR FUND(S) Please print the fund name(s) exactly as listed inside the Investment Kit you received with this form. Fill in the amount of your investment for each fund. The minimum initial investment is $2,500 per fund ($1,000 for UGMAs/UTMAs) but is waived if you use Automatic Asset Builder (see Sections 6 and 7E). Fund Name Amount __________________________________ $________ Fund Name Amount __________________________________ $________ Fund Name Amount __________________________________ $________ Fund Name Amount __________________________________ $________ Total Investment$________ 6 CHOOSE YOUR INVESTMENT METHOD A. __ By check. Make payable to T. Rowe Price Funds. (Otherwise it may be returned.) B. __ By Automatic Asset Builder. See Section 7E for instructions. C. __ By wire. Please call 1-800-225-5132 for the following information and wiring instructions: Account Number _ _ _ _ _ _ _ _ _ _ - _ Date of Wire _ _ - _ _ - _ _ month day year (over, please) 7 SELECT YOUR ACCOUNT SERVICE OPTIONS A. TO RECEIVE YOUR DISTRIBUTIONS Your dividends and capital gains will be reinvested unless you indicate ------ otherwise. __ Pay dividends and capital gains to me by check. __ Transfer dividends and capital gains to my bank account. (Please complete Section 7C if you elect this option.) __ Pay dividends to me by check and reinvest capital gains. B. TO EXCHANGE AND REDEEM FUND SHARES You can use the telephone or your personal computer to check your account balance, redeem shares, or make exchanges among any identically registered accounts unless you check the boxes below. ------ __ I do NOT want telephone/computer exchange. __ I do NOT want telephone/computer redemption. C. TO MAKE TRANSFERS BETWEEN YOUR BANK AND T. ROWE PRICE This service makes purchasing or redeeming fund shares even more convenient. Simply call a T. Rowe Price representative or Tele*Access (R) and your transaction will be processed by electronically moving money between your bank account and your mutual fund accounts. Transfers occur only when you initiate them ($100 minimum) and are made through the Automated Clearing House (ACH) network or by wire.* This service becomes available approximately 20 days after your application is processed. Since you initiate transfers by phone or computer, be sure that you did not decline the phone/computer redemption service above. __ Check this box to set up this service. YOU MUST ALSO ATTACH A BLANK, VOIDED CHECK (other than your investment check) from your bank account to this form. Any co-owner of your bank account who is not a co-owner of --- your mutual fund account must sign below. X___________________________________________ Bank Account Co-owner's Signature *There is a $5 fee for wire redemptions under $5,000 but no fee for ACH transactions. ATTACH VOIDED CHECK HERE D. TO SET UP CHECKWRITING You can write checks for $500 or more on all T. Rowe Price money market and bond fund accounts (except the High Yield and Emerging Markets Bond funds). Those authorized to write checks should read the checking agreement and sign below. By signing this form, I agree to all of State Street Bank's checking account rules, and to any conditions and limitations on redeeming checks from the T. Rowe Price Funds. I also agree that: (1) This form applies to any other identically registered T. Rowe Price fund checking account I establish later; (2) If I am subject to IRS backup withholding, I may write checks only on money fund accounts; (3) State Street Bank and the Fund reserve the right to change, revoke, or close any checking account; (4) The signatures are authentic, and, for organizations, I have submitted an original or certified resolution authorizing the individuals with legal capacity to sign and act on behalf of the organization. (Do not detach this section from the rest of the form.) _____________________________________________________ Fund Name Fund Name _____________________________________________________ Print Name of Owner, Custodian, or Trustee X___________________________________________________ Signature Date _____________________________________________________ Print Name of Joint Owner, Co-trustee, Corporate Officer, etc. X___________________________________________________ Signature Date How many signatures do you require on checks? __ Only one owner __ All owners G00-008 6/30/98 E. TO SET UP AUTOMATIC ASSET BUILDER This service allows you to automatically invest in your fund account through your bank account and/or payroll deduction each month (minimum $50 per fund). ___ Check this box to invest from your bank account. Be sure to complete Section 7C and fill in the information below. Fund Name __________________________________________________________________________ Amount Day of Month You Would Like to Invest __________________________________ ____ Fund Name __________________________________________________________________________ Amount Day of Month You Would Like to Invest _____________________ ___ Fund Name __________________________________________________________________________ Amount Day of Month You Would Like to Invest _____________________ ___ Fund Name __________________________________________________________________________ Amount Day of Month You Would Like to Invest _____________________ ___ ____ Check this box to invest through payroll deduction. T. Rowe Price will mail you instructions for this service. 8 SIGN YOUR NEW ACCOUNT FORM By signing this form, I certify that: - - I agree to be bound by the terms of the prospectus for each fund in which I am investing. If I am purchasing shares after reviewing a fund profile, I understand that I will receive the prospectus after I purchase shares in the fund. I have the authority and legal capacity to purchase mutual fund shares, am of legal age in my state, and believe each investment is suitable for me. - - I authorize T. Rowe Price, the Funds, their affiliates and agents to act on any instructions believed to be genuine for any service authorized on this form, including telephone/computer services. The Funds use reasonable procedures (including shareholder identity verification) to confirm that instructions given by telephone/computer are genuine, and the Funds are not liable for acting on these instructions. (If these procedures are not followed, it is the opinion of certain regulatory agencies that the Funds may be liable for any loss that may result from acting on instructions given.) I understand that anyone who can properly identify my account(s) can make phone/computer transactions on my behalf. - - The Funds can redeem shares from my account(s) to reimburse a fund for any loss due to nonpayment or other indebtedness. - - By selecting the electronic transfer service in Section 7C, I hereby authorize T. Rowe Price to initiate credit and debit entries to my (our) account at the Financial Institution indicated and for the Financial Institution to credit or debit the same to such account through the Automated Clearing House (ACH) system, subject to the rules of the Financial Institution, ACH, and the Fund. T. Rowe Price may correct any transaction error with a debit or credit to my Financial Institution account and/or Fund account. THIS AUTHORIZATION, including any credit or debit entries initiated thereunder, is in full force and effect until I notify T. Rowe Price of its revocation by telephone or in writing and T. Rowe Price has had sufficient time to act on it. - - Under penalties of perjury, the tax identification number(s) shown on this form is correct. If I fail to give the correct number or fail to sign this form, T. Rowe Price may reject, restrict, or redeem my investment. I may also be subject to IRS backup withholding (currently 31%) on all distributions and redemptions, and I may be subject to a $50 IRS penalty. - - Under penalties of perjury, I am NOT subject to IRS backup withholding because 1) I have not been notified, or 2) notification has been revoked (cross out "NOT" if you are currently subject to withholding), or 3) I have indicated in Section 4 that I am a nonresident alien and certify that for dividends I am not a U.S. citizen or resident (or I am filing for a foreign corporation, partnership, estate, or trust). - - For clarification on any of these certification issues, please contact us for assistance. - - The IRS does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. PLEASE SIGN HERE X__________________________________________________ Signature of Owner, Custodian, or Trustee Date X__________________________________________________ Signature of Joint Owner, Co-trustee, Corporate Officer, etc. Date Thank you for your investment. You will receive a confirmation shortly. 8 0142 -----END PRIVACY-ENHANCED MESSAGE-----