-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, SkvIwbxs6fv44LjSzFqV64N2EyBNDSN/q0RFRvjE7ZdnRyeypVO+JMvilYOhtGdH pfalc+XzV/yilRau7OevaQ== 0000950161-94-000018.txt : 19940825 0000950161-94-000018.hdr.sgml : 19940825 ACCESSION NUMBER: 0000950161-94-000018 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940824 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: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04358 FILM NUMBER: 94545869 BUSINESS ADDRESS: STREET 1: 100 E PRATT ST CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 3015472000 FORMER COMPANY: FORMER CONFORMED NAME: PRICE T ROWE COMMON STOCK FUND DATE OF NAME CHANGE: 19851003 N-30D 1 SEMI-ANNUAL; T. ROWE PRICE NEW AMERICA GROWTH FUND Fellow Shareholders Against a backdrop of declining stock prices, particularly in the small- and mid-cap growth sectors of the market, your Fund fell 4.7% in the second quarter and 10.0% in the first half of 1994. Investors have gravitated toward cyclical stocks this year, and have punished the higher growth, service sector stocks that form the heart of New America Growth Fund's investment program. The decline in net asset value is disappointing as the Fund, a strong performer over the long term, fared worse than the unmanaged indices and the Lipper Growth Fund Average, as shown below. Performance Comparison Periods Ended 6/30/94 3 Months 6 Months New America Growth Fund -4.7% -10.0 % S&P 500 Index 0.4 -3.4 Nasdaq Composite -5.0 -9.1 Lipper Growth Fund Average -2.6 -6.0 Principal only Market Environment The stock market began the year on a positive note, but the uptrend was short-lived. In February, the Federal Reserve, for the first time in five years, initiated a series of interest rate increases in an effort to restrain what appeared to be an overheating economy. Long-term interest rates rose nearly two percentage points, driven by investor fears of impending inflationary pressures as well as the unwinding of leveraged speculative positions by hedge funds and others. Several measures of commodity prices, often a harbinger of future trends in consumer prices, rose ominously, further unsettling investors. The rise in rates triggered a correction in the stock market, led by small-and mid-sized growth stocks. The Nasdaq Composite Index finished the first half 12.2% below its high set in March. While the economy still appears to be growing steadily, driven by business investment in capital equipment and consumer purchases of durable goods such as automobiles and furniture, investors became obsessed with a perceived currency crisis in the second quarter. Since the economic recovery in the United States has preceded significant growth in most other industrialized nations, the trade deficit has widened as U.S. consumers stepped up their purchases of foreign goods. This coupled with Americans' newfound appetite for foreign securities, which also necessitates the sale of U.S. dollars, caused the dollar to fall against several major currencies, notably the German mark and the Japanese yen. The weak dollar, in turn, further pressured U.S. interest rates. Lost in the talk of a "dollar crisis," however, is the fact that the American dollar actually appreciated significantly in the first half of 1994 against the currencies of our primary trading partners, Canada and Mexico. The current stock market correction has been driven by higher interest rates. In this environment, the stocks of many of the high-growth companies your Fund emphasizes have been especially hard hit as price/earnings ratios have contracted in spite of little evidence of a deterioration in either corporate fundamentals or earnings growth. The best performing sectors in the first half of 1994 were commodity cyclicals (such as steel and paper makers) and industrial companies, groups that your Fund's service company emphasis does not encompass. Among the hardest hit sectors were utilities, retailers, and gaming companies. Portfolio Review The top two contributors to the Fund in the first half were Foundation Health and United HealthCare, health maintenance organizations. Both companies continued to generate strong earnings gains and, although Wall Street still frets over pending health care legislation, HMOs are increasingly viewed as part of the solution to the nation's medical cost problem. Another top contributor for both the second quarter and the first half was Smith International, an energy service company, which made a very profitable acquisition. On the negative side of the ledger, gaming and retailing stocks dominated the list for both the quarter and the half. President Riverboat Casinos and Autotote, along with the entire gaming sector, fell sharply when progress in opening new gaming jurisdictions stalled. Several retailers, including Phillips-Van Heusen and General Nutrition, were also among the worst contributors as comparable store sales gains began to moderate. The worst contributor in the first half was CUC International, the Fund's top contributor in 1993, which is the nation's largest purveyor of direct mail, discount shopping se rvices. While the company continues to meet earnings expectations, and we feel its prospects are undiminished, its valuation has contracted. We believe the stock's setback is temporary. Portfolio Strategy In the first six months of 1994, the major change in the portfolio was a substantial reduction in the proportion of consumer stocks, as shown below. Sector Diversification 12/31/93 6/30/94 Financial Services 15% 18% Consumer Services 49 39 Business Services 32 37 Reserves 4 6 Total 100% 100% While to some extent the reduction in the Fund's consumer exposure resulted from the poor performance of the sector, we also sold several large holdings such as King World Productions, TJX Companies, and McCaw Cellular Communications, which is in the process of being acquired by AT&T. Recent additions to the portfolio include two financial services companies, Franklin Resources, an investment management company, and MGIC Investment, a private mortgage insurer, as well as a business services company, SunGard Data Systems, a supplier of analytical support systems and computer disaster recovery services. As always, we emphasize companies that dominate their businesses, have outstanding managements, and develop well-conceived strategies that should enable them to maintain their above-average earnings growth for the next three to five years. We remain biased toward smaller and mid-sized growth companies and prefer those we can hold for a number of years. The portfolio's current earnings growth, profitability, and valuation characteristics are shown below. Financial Comparison New America Growth Fund S&P 500 Earnings Growth Rate Estimated Next Five Years 20.1% 7.0% Profitability - Return on Equity Latest 12 Months 18.2% 13.2% Dividend Yield on Stocks 0.6% 2.9% P/E Ratio (Based on next 12 months' estimated earnings) 15.4x 14.4x Outlook The financial markets have been weak even as the economic environment and corporate earnings outlook are stronger than at any time in recent years. Most of the speculative excesses that began to appear in 1993 _ such as an overheated initial public offering market and a stampede to invest in emerging markets overseas _ have dissipated. While the stock market is not cheap by historical standards, valuations appear more reasonable as stocks have declined and corporate earnings are rising. The growth stock universe, in particular, looks more attractive. While investors are currently enamored of cyclical stocks, these companies are unlikely to sustain their rates of growth. The market's performance in the second half of 1994 will depend in large measure on the direction of interest rates. We do not believe that long-term rates will rise significantly from current levels, but it will be difficult for the stock market to gain ground if they do. While 1994 has been difficult for the Fund thus far, we are confident that our philosophy of investing in companies with above-average, consistent earnings growth will provide our shareholders with favorable returns over the next several years. Respectfully submitted, (signature) John H. Laporte President and Chairman of the Investment Advisory Committee (signature) Brian W.H. Berghuis Executive Vice President July 10, 1994 Twenty-Five Largest Holdings June 30, 1994 Percent of Company Net Assets CUC International 3.7% Foundation Health 3.2 United HealthCare 3.0 BLOCKBUSTER Entertainment 2.6 First Financial Management 2.3 State Street Boston 2.2 Alco Standard 2.1 SunGard Data Systems 2.1 Sbarro 2.0 Wal-Mart 2.0 Franklin Resources 2.0 FIserv 1.8 Catalina Marketing 1.7 Autotote 1.7 Columbia/HCA Healthcare 1.7 Phillips-Van Heusen 1.7 MGIC Investment 1.6 Paychex 1.6 Toys R Us 1.6 Brinker 1.6 ADVO 1.6 Schlumberger 1.5 Countrywide Credit 1.4 Jones Apparel Group 1.4 Vodafone 1.4 Total 49.5% Contributions to the Net Asset Value Per Share Three Months Ended June 30, 1994 Ten Best Contributors United HealthCare 5 cents Freddie Mac 5 Pittston Services 5 Smith International 5 Alco Standard 5 Sanifill 4 State Street Boston 4 Schlumberger 4 Hollywood Park 3 Viking Office Products 3 Total 43 cents TEN WORST CONTRIBUTORS President Riverboat Casinos - 17 cents CUC International 16 Phillips-Van Heusen 15 General Nutrition Companies 13 Autotote 10 Paychex 9 Sotheby's 9 SEI 9 ADVO 8 Consolidated Stores 7 Total - 113 cents Position added Position eliminated Six Months Ended June 30, 1994 Ten Best Contributors Foundation Health 18 cents United HealthCare 14 Smith International 7 Columbia/HCA Healthcare 6 Freddie Mac 6 Sanifill 4 FIserv 3 Hollywood Park 3 BISYS Group 3 BJ Services 3 Total 67 cents Ten Worst Contributors CUC International - 32 cents President Riverboat Casinos 27 Phillips-Van Heusen 19 General Nutrition Companies 19 Turner Broadcasting Systems 18 Autotote 17 Viacom 16 BLOCKBUSTER Entertainment 13 Consolidated Stores 13 SEI 13 Total - 187 cents Statement of Net Assets (Value in thousands) T. Rowe Price New America Growth Fund / June 30, 1994 (Unaudited) Common Stocks _ 94.0% FINANCIAL SERVICES _ 17.6% Value BANK & TRUST _ 3.5% 220,000 shs. BANC ONE $ 7,535 350,000 State Street Boston 13,519 21,054 INSURANCE _ 3.0% 37,500 MBIA 2,152 375,000 MGIC Investment 9,938 103,289 Mutual Assurance 2,117 81,000 Transatlantic Holdings 4,232 18,439 INVESTMENT SERVICES _ 6.0% 160,000 Alex. Brown 3,960 200,000 Charles Schwab 4,950 367,000 Duff & Phelps 7,294 325,000 Franklin Resources 12,066 100,000 Morgan Stanley Group 5,687 150,000 Raymond James Financial 2,175 36,132 OTHER FINANCIAL SERVICES _ 5.1% 600,000 Countrywide Credit 8,625 75,000 Fannie Mae. 6,262 120,000 Freddie Mac 7,260 333,333 Mercury Finance 5,500 150,000 North American Mortgage 3,600 31,247 Total Financial Services 106,872 CONSUMER SERVICES _ 38.6% RETAILING/GENERAL MERCHANDISERS _ 2.0% 500,000 Wal-Mart 12,125 RETAILING/SPECIALTY RETAILERS _ 12.9% 254,000 Cole National 3,429 347,000 Consolidated Stores 4,251 150,000 Fred Meyer 5,456 400,000 General Nutrition Companies 6,900 161,000 Hanover Direct 725 300,000 Jones Apparel Group 8,475 175,000 Kohl's 8,225 185,000 Little Switzerland 1,156 195,000 Nautica Enterprises 4,705 100,000 Nine West 2,600 372,011 Office Depot 7,440 400,000 Phillips-Van Heusen 10,050 200,000 Software Etc. 1,400 127,500 shs. Talbots $ 3,825 300,000 Toys R Us 9,825 78,462 ENTERTAINMENT & LEISURE _ 9.3% 650,000 Autotote (Class A) 10,237 600,000 BLOCKBUSTER Entertainment 15,525 148,500 Hollywood Park 3,490 348,700 International Family Entertainment (Class B) 5,754 105,000 Marvel Entertainment 1,916 150,000 Mirage Resorts 2,812 423,750 President Riverboat Casinos 3,072 150,000 Promus Companies 4,444 130,000 Savoy Pictures 1,723 446,386 Turner Broadcasting Systems (Class B) 7,756 56,729 MEDIA/COMMUNICATION SERVICES _ 3.9% 241,000 ALC Communications 7,411 240,000 CellStar 2,670 300,000 Mobile Telecommunication Technologies 5,400 110,000 Vodafone, ADR 8,332 23,813 RESTAURANTS/FOOD DISTRIBUTION _ 5.4% 462,500 Brinker 9,712 119,790 Consolidated Products 1,228 86,600 Morrison Restaurants 1,970 300,000 Outback Steakhouse 7,238 333,500 Sbarro 12,423 32,571 PERSONAL SERVICES _ 5.1% 841,531 CUC International 22,511 200,000 Home Shopping Network 2,350 483,500 Sotheby's 5,983 30,844 Total Consumer Services 234,544 BUSINESS SERVICES _ 37.1% HEALTH CARE SERVICES _ 10.7% 269,500 Columbia/HCA Healthcare 10,106 500,000 Foundation Health 19,437 121,600 Genesis Health Ventures 3,086 100,043 HEALTHSOUTH Rehabilitation 2,614 385,000 NovaCare 6,160 216,450 Owens & Minor 3,220 95,000 Physician Corporation 2,137 400,000 United HealthCare 18,350 65,110 DISTRIBUTION SERVICES _ 3.9% 225,000 shs. Alco Standard $ 12,853 100,000 Cardinal Health 4,900 150,000 Danka Business Systems 5,981 23,734 COMPUTER SERVICES _ 8.2% 246,000 BISYS Group 5,043 250,000 First Financial Management 13,875 546,500 FIserv 11,203 375,000 SEI 6,844 351,000 SunGard Data Systems 12,724 49,689 ENVIRONMENTAL SERVICES _ 1.1% 260,000 Sanifill 6,565 ENERGY SERVICES _ 4.2% 250,000 BJ Services 5,156 145,400 Camco International 2,962 240,000 Enterra 5,040 150,000 Schlumberger 8,869 241,100 Smith International 3,677 25,704 OTHER BUSINESS SERVICES _ 9.0% 625,000 ADVO 9,531 21,900 Career Horizons 416 250,000 Catalina Marketing 10,500 309,700 Hospitality Franchise 7,588 337,500 Paychex 9,872 215,000 Payco American 2,043 250,000 Pittston Services 6,687 313,000 Viking Office Products 7,825 54,462 Total Business Services 225,264 Miscellaneous Stocks - 0.7% 4,041 Total Common Stocks (Cost _ $465,589) 570,721 Convertible Bonds _ 0.2% $ 270,000 Consolidated Products, Sub. Deb., 10.00%, 11/30/02 850 Total Convertible Bonds (Cost _ $270) 850 Short-Term Investments _ 7.4% COMMERCIAL PAPER _ 7.4% 5,000,000 ANZ Delaware, 4.50%, 8/18/94 4,944 5,000,000 Asset Securitization Cooperative, 4(2), 4.42%, 9/9/94 4,948 5,000,000 BMW US Capital, 4.48%, 8/23/94 4,944 5,000,000 Countrywide Funding, 4.27%, 7/8/94 4,986 5,000,000 Dover, 4(2), 4.28%, 7/19/94 4,983 $ 369,000 Harvard University, 4.30%, 7/1/94 369 5,000,000 Preferred Receivables Funding,4.50%,9/1/94 4,943 5,000,000 Unilever Capital, 4(2), 4.53%, 7/5/94 4,966 10,000,000 Western Australian Treasury, 4.43 - 4.50%, 7/13 - 8/18/94 9,906 Total Short-Term Investments (Cost _ $44,989) 44,989 Total Investments in Securities _ 101.6% (Cost _ $510,848) 616,560 Other Assets Less Liabilities _ (1.6)% (9,524) Net Assets Consisting of: Accumulated net investment income - net of distributions $ (1,133) Accumulated realized gains/ losses - net of distributions 10,315 Net unrealized appreciation of investments 105,712 Paid-in-capital applicable to 24,044,613 no par value shares of beneficial interest outstanding; unlimited number of shares authorized 492,142 Net Assets - 100.0% $ 607,036 Net Asset Value Per Share $ 25.25 Non-income producing 4(2) Commercial Paper sold within terms of a private placement memorandum, exempt from registration under section 4.2 of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." The accompanying notes are an integral part of these financial statements. Statement of Operations T. Rowe Price New America Growth Fund / Six Months Ended June 30, 1994 (Unaudited) Amounts in Thousands INVESTMENT INCOME Income Dividends $1,834 Interest 698 Total income $ 2,532 Expenses Investment management fees 2,136 Shareholder servicing fees & expenses 1,280 Prospectus & shareholder reports 85 Custodian and accounting fees & expenses 78 Registration fees & expenses 42 Legal & auditing fees 17 Proxy & annual meeting 10 Trustees' fees & expenses 9 Miscellaneous expenses 8 Total expenses 3,665 Net investment income (1,133) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain 8,813 Change in net unrealized appreciation or depreciation (73,392) Net loss on investments (64,579) DECREASE IN NET ASSETS FROM OPERATIONS $(65,712) Statement of Changes in Net Assets T. Rowe Price New America Growth Fund (Unaudited) Six Months Ended Year Ended June 30, 1994 Dec. 31, 1993 Amounts in Thousands INCREASE (DECREASE) IN NET ASSETS Operations Net investment income $(1,133) $(2,063) Net realized gain on investments 8,813 27,571 Change in net unrealized appreciation or depreciation of investments (73,392) 61,725 Increase (decrease) in net assets from operations (65,712) 87,233 Distributions to shareholders Net realized gain on investments _ (23,859) Capital share transactions Sold 5,118 and 8,619 shares 138,828 223,466 Distributions reinvested of 0 and 839 shares _ 23,019 Redeemed 3,156 and 6,689 shares (85,198) (170,970) Increase in net assets from capital share transactions 53,630 75,515 Total increase (decrease) (12,082) 138,889 NET ASSETS Beginning of period 619,118 480,229 End of period $607,036 $619,118 The accompanying notes are an integral part of these financial statements. Notes to Financial Statements T. Rowe Price New America Growth Fund / June 30, 1994 (Unaudited) Note 1 - Significant Accounting Policies T. Rowe Price New America Growth Fund (the Fund) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. A) Valuation - Equity securities listed or regularly traded on a securities exchange (including Nasdaq) are valued at the last quoted sales price on the day the valuations are made. A security which 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. Other equity securities and those listed securities that are not traded on a particular day are valued at a price within the limits of the latest bid and asked prices deemed by the Board of Trustees, or by persons delegated by the Board, best to reflect fair value. Debt securities are generally traded in the over-the-counter market and are valued at a price deemed best to reflect fair value as quoted by dealers who make markets in these securities or by an independent pricing service. Short-term debt securities are valued at their cost which, when combined with accrued interest, approximates fair value. Assets and liabilities for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by, or under the supervision of, the officers of the Fund, as authorized by the Board of Trustees. B) Other - Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on an identified cost basis. Dividend income and distributions to shareholders are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. Note 2 - Portfolio Transactions Purchases and sales of portfolio securities, other than short-term and U.S. Government securities, aggregated $144,693,000 and $103,804,000, respectively, for the six months ended June 30, 1994. Note 3 - Federal Income Taxes No provision for federal income taxes is required since the Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. At June 30, 1994, the aggregate cost of investments for federal income tax and financial reporting purposes was $510,848,000 and net unrealized appreciation aggregated $105,712,000, of which $128,316,000 related to appreciated investments and $22,604,000 to depreciated investments. Note 4 - Related Party Transactions The investment management agreement between the Fund and T. Rowe Price Associates, Inc. (the Manager) provides for an annual investment management fee, computed daily and paid monthly, consisting of an Individual Fund Fee equal to 0.35% of average daily net assets and a Group Fee. The Group Fee is based on the combined assets of certain mutual funds sponsored by the Manager or Rowe Price-Fleming International, Inc. (the Group). The Group Fee rate ranges from 0.48% for the first $1 billion of assets to 0.31% for assets in excess of $34 billion. The effective annual Group Fee rate at June 30, 1994 and for the six months then ended was 0.34%. The Fund pays a pro rata portion of the Group Fee based on the ratio of the Fund's net assets to those of the Group. T. Rowe Price Services, Inc. (TRPS) and Retirement Plan Services, Inc. (RPS) are wholly owned subsidiaries of the Manager. TRPS provides transfer and dividend disbursing agent functions and shareholder services for all accounts. RPS provides subaccounting and recordkeeping services for certain retirement accounts invested in the Fund. The Manager, under a separate agreement, calculates the daily share price and maintains the financial records of the Fund. For the six months ended June 30, 1994 the Fund i- ncurred fees totalling approximately $1,136,000 for these services provided by related parties. At June 30, 1994, these investment management and service fees payable were $600,000.
Financial Highlights T. Rowe Price New America Growth Fund (Unaudited) For a share outstanding throughout each period Six Months ended Year ended December 31, June 30, 1994 1993 1992 1991 1990 1989 NET ASSET VALUE, BEGINNING OF PERIOD $28.04 $24.86 $22.79 $14.66 $16.90 $12.38 Investment Activities Net investment income (0.05) (0.08) (0.04) (0.02) 0.13 _ Net realized and unrealized gain (loss) (2.74) 4.39 2.29 9.02 (2.20) 4.75 Total from Investment Activities (2.79) 4.31 2.25 9.00 (2.07) 4.75 Distributions Net investment income _ _ _ _ (0.17) _ Net realized gain _ (1.13) (0.18) (0.87) _ (0.23) Total Distributions _ (1.13) (0.18) (0.87) (0.17) (0.23) NET ASSET VALUE, END OF PERIOD $25.25 $28.04 $24.86 $22.79 $14.66 $16.90 RATIOS/SUPPLEMENTAL DATA Total Return (10.0)% 17.4% 9.9% 61.9% (12.2)% 38.4% Ratio of Expenses to Average Net Assets 1.19% 1.23% 1.25% 1.25% 1.25% 1.50% Ratio of Net Investment Income to Average Net Assets (0.37)% (0.39)% (0.44)% (0.12)% 0.81% (0.02)% Portfolio Turnover Rate 35.3% 43.7% 26.4% 42.3% 41.7% 39.6% Net Assets, End of Period (in thousands) $607,036 $619,118 $480,229 $231,729 $95,697 $134,065 Annualized. Excludes expenses in excess of a 1.25% voluntary expense limitation in effect through December 31, 1993.
Shareholder Services To help shareholders monitor their current investments and make decisions that accurately reflect their financial goals, T. Rowe Price offers a wide variety of information and services _ at no extra cost. Knowledgeable Service Representatives By Phone _ Shareholder Service Representatives are available from 8:00 a.m. to 10:00 p.m., Monday - Friday, and weekends from 9:00 a.m. to 5:00 p.m E.T. Call 1-800-225-5132 to speak directly with a representative who will be able to assist you with your accounts. In Person _ Visit one of our investor center locations to meet with a representative who can help you with your accounts. While there, you can drop off applications or obtain prospec- tuses and other literature. Automated 24-Hour Services Tele*Access(R) (1-800-638-2587) provides information such as account balance, date and amount of your last transaction, latest dividend payment, and fund prices and yields. Additionally, you have the ability to request prospectuses, statements, account and tax forms, reorder checks, and initiate purchase, redemption, and exchange orders for identically registered accounts. PC*Access(R) provides the same information as Tele*Access, but on a personal computer via dial-up modem. Account Services Checking _ Write checks for $500 or more on any money market and most bond fund accounts. Automatic Investing _ Build your account over time by investing directly from your bank account or paycheck with Automatic Asset Builder. Additionally, Automatic Exchange enables you to set up systematic investments from one fund account into another, such as from a money fund into a stock fund. A low, $50 minimum makes it easy to get started. Automatic Withdrawal _ If you need money from your fund account on a regular basis, you can establish scheduled, automatic redemptions. Dividend and Capital Gains Payment Options _ Reinvest all or some of your distributions, or take them in cash. We give you maximum flexibility and convenience. Investment Information Combined Statement _ A comprehensive overview of your T. Rowe Price accounts. The summary page gives your earnings by tax category, provides total portfolio value, and lists your investments by type _ stock, bond, and money market. Detail pages itemize account transactions by fund. Quarterly Shareholder Reports _ Portfolio managers review the performance of the funds in plain language and discuss T. Rowe Price's economic outlook. The T. Rowe Price Report _ A quarterly newsletter with relevant articles on market trends, personal financial planning, and T. Rowe Price's economic perspective. Insights _ A library of information that includes reports on mutual fund tax issues, investment strategies, and financial markets. Detailed Investment Guides _ Our widely acclaimed Asset Mix Worksheet, College Planning Kit, Retirees Financial Guide, Retirement Planning Kit (also available on disk for PC use), and Guide to Risk-Adjusted Performance can help you determine and reach your investment goals. Discount Brokerage You can trade stocks, bonds, options, precious metals, and other securities at a substantial savings over regular commission rates. Call a Shareholder Service Representative for more information. T. Rowe Price No-Load Mutual Funds Stability Prime Reserve Summit Cash Reserves U.S. Treasury Money California Tax-Free Money New York Tax-Free Money Summit Municipal Money Market Tax-Exempt Money Conservative Income Adjustable Rate U.S. Government Short-Term Bond Short-Term Global Income Summit Limited-Term Bond U.S. Treasury Intermediate Florida Insured Intermediate Tax-Free Maryland Short-Term Tax-Free Bond Summit Municipal Intermediate Tax-Free Insured Intermediate Bond Tax-Free Short-Intermediate Income Global Government Bond GNMA New Income Spectrum Income Summit GNMA U.S. Treasury Long-Term California Tax-Free Bond Georgia Tax-Free Bond Maryland Tax-Free Bond New Jersey Tax-Free Bond New York Tax-Free Bond Summit Municipal Income Tax-Free Income Virginia Tax-Free Bond Aggressive Income High Yield International Bond Tax-Free High Yield CONSERVATIVE Growth Balanced Capital Appreciation Dividend Growth Equity Income Equity Index Growth & Income Spectrum Growth Growth Blue Chip Growth European Stock Growth Stock International Stock Japan Mid-Cap Growth New Era Small-Cap Value Aggressive Growth International Discovery Latin America New America Growth New Asia New Horizons OTC Science & Technology PERSONAL STRATEGY FUNDS Personal Strategy Income Personal Strategy Balanced Personal Strategy Growth Call if you want to know about any T. Rowe Price fund. We'll send you a prospectus with more complete information, including management fees and other expenses. Read it carefully before you invest or send money. -----END PRIVACY-ENHANCED MESSAGE-----