N-30D 1 0001.txt T. ROWE PRICE EQUITY INDEX 500 -------------------------------------------------------------------------------- Annual Report - Financial Statements -------------------------------------------------------------------------------- T. ROWE PRICE EQUITY INDEX 500 FUND ----------------- DECEMBER 31, 2000 ----------------- T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- --------------------- FINANCIAL HIGHLIGHTS For a share outstanding throughout each period --------------------------------------------------------------------------------
Year Ended 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 NET ASSET VALUE Beginning of period $ 39.56 $ 33.38 $ 26.38 $ 20.34 $ 17.21 Investment activities Net investment income (loss) 0.33* 0.34* 0.33* 0.35* 0.38* Net realized and unrealized gain (loss) (3.98) 6.49 7.10 6.28 3.47 Total from investment activities (3.65) 6.83 7.43 6.63 3.85 Distributions Net investment income (0.33) (0.34) (0.34) (0.34) (0.38) Net realized gain (0.08) (0.31) (0.09) (0.25) (0.34) Total distributions (0.41) (0.65) (0.43) (0.59) (0.72) NET ASSET VALUE End of period $ 35.50 $ 39.56 $ 33.38 $ 26.38 $ 20.34 ----------------------------------------------------------------- Ratios/Supplemental Data Total return+ (9.30%)* 20.64%* 28.31%* 32.87%* 22.65%* Ratio of total expenses to average net assets 0.35%* 0.40%* 0.40%* 0.40%* 0.40%* Ratio of net investment income (loss) to average net assets 0.85%* 0.98%* 1.17%* 1.49%* 2.05%* Portfolio turnover rate 9.1% 5.2% 4.7% 0.7% 1.3% Net assets, end of period (in millions) $ 4,045 $ 5,049 $ 3,347 $ 1,908 $ 808
+ Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions and payment of no redemption or account fees. * Excludes expenses in excess of a 0.40% voluntary expense limitation in effect through 12/31/99 and a 0.35% voluntary expense limitation in effect through 12/31/02 The accompanying notes are an integral part of these financial statements. 2 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- December 31, 2000 --------------------- PORTFOLIO INVESTMENTS Shares/Par Value -------------------------------------------------------------------------------- In thousands COMMON STOCKS 99.8% BASIC MATERIALS 3.2% Chemicals 1.8% DuPont 358,443 $ 17,317 3M 135,664 16,348 Dow Chemical(S) 233,207 8,541 Air Products and Chemicals 78,802 3,231 Rohm & Haas 75,328 2,735 PPG Industries(S) 57,598 2,668 Union Carbide 47,022 2,530 Praxair 56,047 2,487 Avery Dennison 38,524 2,114 Ecolab 44,107 1,905 Vulcan Materials 35,700 1,709 Sherwin-Williams 55,930 1,472 Eastman Chemical 26,431 1,289 Goodyear Tire & Rubber(S) 53,638 1,233 Sigma Aldrich 26,605 1,045 Ashland 24,942 895 Engelhard 43,776 892 Sealed Air *(S) 27,749 846 FMC * 10,454 750 Hercules(S) 37,886 722 Great Lakes Chemical(S) 18,231 678 71,407 ----------- Forest Products and Paper 0.8% Kimberly-Clark 183,438 12,967 International Paper 165,495 6,754 Weyerhaeuser 75,288 3,821 Georgia-Pacific(S) 78,090 2,431 Willamette Industries 38,255 1,796 Mead 34,517 1,083 Westvaco 33,932 990 Temple-Inland 16,430 881 Boise Cascade(S) 20,231 680 Pactiv * 54,881 679 3 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Bemis(S) 19,125 $ 642 Louisiana Pacific(S) 37,125 376 Potlatch 9,347 314 33,414 ----------- Gold 0.1% Barrick Gold 138,583 2,270 Placer Dome 110,939 1,068 Newmont Mining 56,105 957 Freeport McMoRan Copper Gold (Class B) * 49,777 426 Homestake Mining 92,316 387 5,108 ----------- Mining and Metals 0.5% Alcoa 297,478 9,966 Alcan Aluminum(S) 110,983 3,794 Phelps Dodge 26,580 1,483 Nucor 26,301 1,044 Inco * 61,367 1,029 USX-U.S. Steel Group(S) 30,743 553 Allegheny Technologies 29,961 476 Ball(S) 9,515 438 Worthington Industries 32,672 263 19,046 ----------- Total Basic Materials 128,975 ----------- BUSINESS SERVICES 0.8% Advertising 0.2% Omnicom 60,687 5,029 Interpublic Group 105,764 4,502 9,531 ----------- Business Services 0.3% Paychex 127,955 6,226 IMS Health 103,433 2,793 Moody's(S) 57,041 1,465 Ceridian * 48,632 969 Quintiles Transnational *(S) 38,900 816 12,269 ----------- 4 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Environmental Services 0.2% Waste Management 213,802 $ 5,933 Allied Waste Industries * 67,000 976 6,909 ----------- Industrial Services 0.1% Robert Half International *(S) 63,000 1,670 Ryder System 21,678 360 2,030 ----------- Total Business Services 30,739 ----------- CONSUMER DISCRETIONARY 4.0% Entertainment 1.3% Viacom (Class B) * 520,364 24,327 Disney 716,976 20,747 Carnival (Class A)(S) 201,058 6,195 51,269 ----------- Hotels 0.2% Marriott (Class A) 82,557 3,488 Starwood Hotels & Resorts Worldwide 66,200 2,333 Hilton 127,415 1,338 Harrah's Entertainment * 41,104 1,084 8,243 ----------- Leisure 0.3% Harley-Davidson(S) 105,600 4,198 Eastman Kodak 105,179 4,141 Mattel 144,817 2,091 Hasbro 62,116 660 Brunswick 29,717 489 11,579 ----------- Media 1.4% Time Warner Telecom 456,453 23,845 Comcast (Class A Special) * 310,646 12,960 Clear Channel Communications * 201,207 9,746 Gannett 90,525 5,709 Tribune 103,827 4,386 Meredith(S) 17,986 579 57,225 ----------- 5 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Publishing 0.3% McGraw-Hill 67,262 $ 3,943 New York Times (Class A) 55,448 2,221 Dow Jones 30,128 1,706 Knight-Ridder(S) 25,715 1,463 Harcourt General 25,192 1,441 R.R. Donnelley * 41,377 1,117 Deluxe 24,762 626 American Greetings (Class A) 24,007 227 12,744 ----------- Restaurants 0.5% McDonald's 451,129 15,339 Starbucks * 64,200 2,843 Tricon Global Restaurants * 50,447 1,665 Wendys 38,944 1,022 Darden Restaurants 40,103 917 21,786 ----------- Total Consumer Discretionary 162,846 ----------- CONSUMER NONDURABLES 6.9% Alcohol 0.4% Anheuser-Busch 316,456 14,399 Brown-Forman (Class B) 23,864 1,587 Adolph Coors (Class B) 12,774 1,026 17,012 ----------- Apparel and Textiles 0.3% Sara Lee 286,541 7,038 NIKE (Class B)(S) 92,608 5,169 V.F. 39,582 1,434 Liz Claiborne 17,694 737 Reebok * 18,887 516 14,894 ----------- Beverages 1.9% Coca-Cola(S) 853,062 51,984 PepsiCo 496,490 24,607 76,591 ----------- 6 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Food 1.5% Unilever(S) 196,612 $ 12,374 Sysco 229,672 6,890 Heinz 122,210 5,797 Campbell 144,659 5,009 ConAgra 183,223 4,764 Quaker Oats 44,979 4,380 General Mills 97,178 4,331 Wrigley 38,585 3,697 Kellogg 139,099 3,651 Archer-Daniels-Midland 216,465 3,247 Hershey Foods 46,698 3,006 Coca-Cola Enterprises 143,698 2,730 Supervalu 46,570 646 60,522 ----------- Home Products 1.9% Procter & Gamble 448,435 35,174 Gillette 362,445 13,094 Colgate-Palmolive 196,890 12,709 Avon 81,838 3,918 Clorox 81,008 2,876 Ralston Purina 105,572 2,758 Newell Rubbermaid 90,779 2,065 Fortune Brands 52,936 1,588 Alberto Culver (Class B)(S) 19,101 818 International Flavors & Fragrances 32,257 655 Tupperware 19,778 404 National Service Industries 14,514 373 76,432 ----------- Tobacco 0.9% Philip Morris 764,861 33,654 UST 55,592 1,560 35,214 ----------- Total Consumer Nondurables 280,665 ----------- 7 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands DURABLE GOODS 1.7% Construction & Real Property 0.1% Masco 153,554 $ 3,944 Centex 21,028 790 Pulte 13,509 570 Kaufman & Broad 14,657 494 ----------- 5,798 ----------- Consumer Durables 0.8% Pharmacia 443,428 27,049 Leggett & Platt 66,800 1,265 Black & Decker 28,490 1,118 Whirlpool 22,447 1,071 Maytag 25,876 836 ----------- 31,339 ----------- Motor Vehicles & Parts 0.8% Ford Motor 644,702 15,110 GM 193,980 9,881 Delphi Automotive Systems 192,325 2,164 Johnson Controls 29,164 1,517 PACCAR(S) 26,806 1,321 Dana(S) 50,449 772 Navistar * 21,414 561 Visteon 46,826 538 Cooper Tire 25,617 272 ----------- 32,136 ----------- Total Durable Goods 69,273 ----------- ENERGY 7.3% Energy Reserves & Production 5.8% Exxon Mobil 1,195,782 103,958 Royal Dutch Petroleum ADR 737,478 44,664 Enron 259,702 21,588 Chevron 220,734 18,638 Anadarko Petroleum 85,537 6,080 Williams Companies 151,091 6,034 El Paso Energy 79,852 5,719 8 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Phillips Petroleum 87,640 $ 4,985 Burlington Resources 74,061 3,740 Unocal 83,353 3,225 Occidental Petroleum 127,095 3,082 Apache 42,931 3,008 Devon Energy 43,658 2,662 Kerr-McGee 33,576 2,247 Amerada Hess 30,274 2,212 EOG Resources(S) 39,700 2,171 Tosco 50,000 1,697 ----------- 235,710 ----------- Oil Refining 0.7% Texaco 189,270 11,758 Coastal 73,798 6,517 Conoco (Class B) 214,451 6,206 USX-Marathon 106,650 2,959 Sunoco 30,095 1,014 ----------- 28,454 ----------- Oil Services 0.8% Schlumberger 196,758 15,728 Halliburton 152,049 5,512 Baker Hughes 113,777 4,729 Nabors Industries * 50,800 3,005 Rowan * 31,396 848 McDermott International 21,611 232 ----------- 30,054 ----------- Total Energy 294,218 ----------- FINANCIAL 17.6% Banks 8.0% Citigroup 1,729,375 88,306 Wells Fargo 587,880 32,738 Bank of America 559,820 25,682 Chase Manhattan 450,548 20,472 Bank One 397,775 14,569 Bank of New York 254,637 14,053 FleetBoston Financial 317,406 11,923 9 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Fifth Third Bancorp 158,848 $ 9,496 First Union(S) 337,035 9,374 J.P. Morgan 55,912 9,253 Mellon Financial 167,868 8,257 Firstar 333,397 7,752 U.S. Bancorp 259,092 7,562 PNC Financial Services Group 99,154 7,244 State Street 55,475 6,891 SunTrust(S) 101,950 6,423 Northern Trust 76,034 6,204 National City 209,370 6,019 BB&T 135,963 5,073 KeyCorp 150,572 4,216 Wachovia 69,871 4,061 Comerica 53,951 3,203 Synovus Financial 97,779 2,634 SouthTrust 58,571 2,385 Summit Bancorp 59,586 2,275 Old Kent Financial 47,795 2,091 Regions Financial 76,128 2,084 Charter One Financial 70,759 2,043 AmSouth 128,416 1,958 Union Planters 45,624 1,631 Huntington Bancshares 87,248 1,415 ----------- 327,287 ----------- Financial Services 3.2% Fannie Mae 346,587 30,066 American Express 457,318 25,124 Freddie Mac 238,937 16,457 Marsh & McLennan 94,734 11,084 MBNA 293,007 10,823 Household International 161,842 8,901 Providian Financial 98,316 5,653 Capital One Financial 67,689 4,455 USA Education 54,671 3,718 Aon 87,369 2,992 Cendant * 248,146 2,388 10 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Countrywide Credit 39,025 $ 1,961 The CIT Group (Class A)(S) 90,700 1,825 Equifax 48,890 1,403 H&R Block 32,316 1,337 ----------- 128,187 ----------- Life & Health Insurance 1.1% MetLife(S) 263,000 9,205 American General 86,347 7,037 CIGNA 52,667 6,968 UnitedHealth Group 109,484 6,720 AFLAC 91,300 6,591 Lincoln National 65,702 3,108 UnumProvident(S) 83,637 2,248 Torchmark 44,025 1,692 Conseco(S) 113,044 1,491 ----------- 45,060 ----------- Property & Casualty Insurance 3.1% American International Group 800,931 78,942 Allstate 251,482 10,955 Hartford Financial Services Group 77,864 5,499 Chubb 61,660 5,334 St. Paul Companies 74,631 4,053 Loews 34,503 3,573 Jefferson Pilot 35,156 2,628 Progressive 25,045 2,595 MBIA 34,214 2,536 MGIC Investment 36,888 2,488 Cincinnati Financial 54,935 2,175 AMBAC 36,750 2,143 SAFECO 43,445 1,430 ----------- 124,351 ----------- Securities & Asset Management 1.9% Morgan Stanley Dean Witter 385,344 30,539 Merrill Lynch 278,504 18,990 Charles Schwab(S) 475,959 13,505 Lehman Brothers 81,732 5,527 Franklin Resources 83,478 3,181 11 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Stilwell Financial 76,400 $ 3,013 Bear Stearns 36,747 1,863 T. Rowe Price Group 42,300 1,788 ----------- 78,406 ----------- Thrifts 0.3% Washington Mutual 185,179 9,826 Golden West Financial 54,354 3,669 ----------- 13,495 ----------- Total Financial 716,786 ----------- HEALTH CARE 14.1% Drugs 9.6% Pfizer 2,170,614 99,848 Merck 793,438 74,285 Bristol-Myers Squibb 672,776 49,743 Eli Lilly 387,801 36,090 American Home Products 450,853 28,652 Schering-Plough 502,710 28,529 Amgen * 355,186 22,721 Cardinal Health 95,886 9,553 Applera-Applied Biosystems Group 73,384 6,903 Allergan 45,528 4,408 Forest Laboratories * 30,250 4,019 McKesson HBOC 99,778 3,581 MedImmune * 72,700 3,469 ALZA * 81,552 3,466 Biogen * 51,900 3,119 King Pharmaceuticals * 58,506 3,024 Chiron * 64,300 2,861 Watson Pharmaceuticals * 33,700 1,725 ----------- 385,996 ----------- Medical Products 4.0% Johnson & Johnson 478,090 50,229 Tyco International 601,814 33,401 Abbott Laboratories 532,035 25,770 Medtronic 413,058 24,938 12 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Baxter International 101,011 $ 8,921 Guidant * 105,481 5,689 Stryker(S) 67,000 3,390 Becton, Dickinson 87,945 3,045 Biomet 61,338 2,438 Boston Scientific * 138,363 1,894 St. Jude Medical * 28,967 1,780 C. R. Bard 16,826 784 Bausch & Lomb 17,559 710 162,989 ----------- Medical Providers & Services 0.5% HCA-Healthcare 189,938 8,359 Tenet Healthcare 109,889 4,883 Wellpoint Health Networks * 21,300 2,455 HealthSouth * 133,779 2,182 Humana * 57,615 879 Manor Care * 33,357 688 19,446 ----------- Total Health Care 568,431 ----------- INDUSTRIAL 6.7% Defense and Aerospace 1.2% Boeing 305,530 20,165 Honeywell International 274,406 12,983 Lockheed Martin 147,975 5,024 Raytheon (Class B) 116,848 3,630 Northrop Grumman 24,513 2,034 TRW 43,471 1,684 B.F. Goodrich 35,184 1,280 46,800 ----------- Heavy Electrical Equipment 4.5% GE 3,408,916 163,415 Emerson Electric 146,859 11,574 Rockwell International 62,525 2,978 Molex(S) 67,025 2,377 Cooper Industries 31,520 1,448 13 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands American Power Conversion * 69,200 $ 857 Cummins Engine(S) 13,869 526 Thomas & Betts 20,691 335 183,510 ----------- Heavy Machinery 0.1% Deere 80,540 3,690 3,690 ----------- Industrial Parts 0.9% United Technologies 164,324 12,920 Illinois Tool Works 103,883 6,187 Caterpillar 118,189 5,592 Ingersoll-Rand 54,479 2,281 Textron 48,279 2,245 Parker Hannifin 39,251 1,732 Genuine Parts 60,662 1,589 ITT Industries 30,248 1,172 Stanley Works 29,841 931 Pall 43,607 929 Snap-On 20,289 565 Timken 21,367 323 Briggs & Stratton 6,707 298 36,764 ----------- Total Industrial 270,764 ----------- MISCELLANEOUS 0.2% Transocean Sedco Forex(S) 72,342 3,328 Aetna * 49,468 2,031 Fluor *(S) 27,026 893 Total Miscellaneous 6,252 ----------- RETAIL 5.9% Clothing Stores 0.4% Gap 292,364 7,455 TJX 96,382 2,675 The Limited 146,242 2,495 Nordstrom(S) 43,734 796 13,421 ----------- 14 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Department Stores 2.7% Wal-Mart 1,536,850 $ 81,645 Target 308,116 9,937 Kohl's * 114,022 6,955 Sears 114,685 3,985 May Department Stores 102,181 3,346 Federated Department Stores * 68,717 2,405 J.C. Penney 92,028 1,001 Kmart * 170,356 905 Dillards 32,643 386 ----------- 110,565 ----------- Grocery Stores 0.6% Safeway * 172,115 10,757 Kroger * 283,178 7,664 Albertson's 144,879 3,839 Winn-Dixie(S) 48,900 947 ----------- 23,207 ----------- Specialty Retail 2.2% Home Depot 796,625 36,396 Walgreen 348,589 14,575 CVS 134,661 8,071 Costco Wholesale * 153,844 6,149 Lowe's 131,597 5,856 Radio Shack 63,820 2,732 Bed Bath & Beyond * 98,100 2,198 Dollar General 113,836 2,149 Best Buy * 72,000 2,129 Staples * 154,353 1,828 Tiffany(S) 50,640 1,602 AutoZone * 44,625 1,272 Toys "R" Us *(S) 71,750 1,197 W. W. Grainger 31,929 1,165 Circuit City Stores(S) 70,602 812 Office Depot *(S) 99,600 710 Consolidated Stores * 36,735 390 Longs Drug Stores 13,499 326 ----------- 89,557 ----------- Total Retail 236,750 ----------- 15 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands TECHNOLOGY 22.4% Communications Equipment 2.6% Nortel Networks(S) 1,065,412 $ 34,160 QUALCOMM * 257,100 21,122 Lucent Technologies 1,148,451 15,504 Motorola 751,502 15,218 Tellabs * 141,242 7,976 Comverse Technology * 56,500 6,139 ADC Telecommunications * 265,400 4,819 Scientific-Atlanta 56,522 1,840 ----------- 106,778 ----------- Computer Communications Equipment 2.4% Cisco Systems * 2,476,196 94,715 Cabletron Systems * 64,552 972 Adaptec * 35,200 360 ----------- 96,047 ----------- Computer Makers 2.1% Sun Microsystems * 1,107,788 30,845 Hewlett-Packard 680,380 21,474 Dell Computer * 890,097 15,549 COMPAQ Computer 584,797 8,801 Palm * 194,605 5,504 Gateway 2000 * 112,892 2,031 Apple Computer * 110,730 1,644 ----------- 85,848 ----------- Computer Software 5.9% Microsoft * 1,834,654 79,635 Oracle * 1,925,664 55,965 IBM 603,364 51,286 VERITAS Software * 134,200 11,747 Siebel Systems * 147,800 9,990 Adobe Systems 82,592 4,806 Computer Associates 199,736 3,895 PeopleSoft * 98,627 3,661 Intuit * 71,500 2,818 Mercury Interactive *(S) 27,900 2,517 16 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Sabre Holdings *(S) 44,150 $ 1,904 NCR * 33,500 1,646 Unisys * 108,862 1,592 Citrix Systems * 64,400 1,451 Parametric Technology * 95,888 1,291 BMC Software * 85,381 1,195 Compuware * 128,570 806 Novell * 113,146 589 Autodesk 19,308 519 Sapient *(S) 42,000 500 ----------- 237,813 ----------- Electronic Equipment 1.8% Corning 316,096 16,694 JDS Uniphase * 330,700 13,765 Agilent Technologies * 155,665 8,523 Solectron *(S) 218,926 7,422 General Dynamics 68,379 5,333 Sanmina *(S) 52,100 3,994 Danaher 48,439 3,312 Dover 70,943 2,878 Teradyne * 60,600 2,257 Eaton 24,527 1,844 PerkinElmer(S) 16,992 1,784 Thermo Electron * 55,988 1,666 Tektronix(S) 34,078 1,148 Power-One * 25,900 1,019 Millipore 15,827 997 Andrew * 28,852 628 Crane 21,132 601 ----------- 73,865 ----------- Information Services 0.9% Automatic Data Processing 217,126 13,747 Electronic Data Systems 160,659 9,278 First Data 135,798 7,155 Computer Sciences * 57,819 3,476 Convergys * 53,700 2,433 ----------- 36,089 ----------- 17 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands Internet 0.9% America Online * 803,180 $ 27,951 Yahoo! *(S) 192,800 5,790 Broadvision *(S) 94,061 1,111 ----------- 34,852 ----------- Miscellaneous Computer Hardware 1.6% EMC * 752,480 50,040 Network Appliance * 108,300 6,951 Pitney Bowes 86,285 2,858 Lexmark International (Class A) * 44,200 1,959 Symbol Technologies 49,550 1,784 Xerox(S) 233,199 1,078 Avaya * 98,012 1,011 ----------- 65,681 ----------- Semiconductor Capital Equipment 0.3% Applied Materials * 278,938 10,652 Novellus Systems *(S) 45,200 1,620 ----------- 12,272 ----------- Semiconductors 3.9% Intel 2,315,332 69,605 Texas Instruments 595,084 28,192 Micron Technology * 197,464 7,010 Broadcom *(S) 80,850 6,794 Applied Micro Circuits * 85,352 6,405 Analog Devices * 122,700 6,281 Xilinx * 113,200 5,243 Linear Technology 109,800 5,075 Maxim Integrated Products * 97,800 4,673 Altera * 136,000 3,583 Vitesse Semiconductor * 61,800 3,420 QLogic * 31,522 2,434 KLA-Tencor * 63,402 2,138 LSI Logic *(S) 108,154 1,848 Advanced Micro Devices * 108,390 1,497 National Semiconductor * 60,911 1,226 Conexant Systems * 80,200 1,218 ----------- 156,642 ----------- Total Technology 905,887 ----------- 18 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands TELECOMMUNICATIONS 5.4% Telephones 5.0% SBC Communications 1,164,419 $ 55,601 Verizon Communications 928,411 46,536 BellSouth 642,617 26,307 Qwest Communications International * 569,610 23,354 AT&T 1,291,198 22,354 WorldCom * 990,324 13,926 Sprint (S) 304,196 6,179 Global Crossing * 304,760 4,362 Centurytel 47,850 1,711 ----------- 200,330 ----------- Wireless Telecommunications 0.4% ALLTEL 107,327 6,701 Sprint PCS * 320,712 6,555 Nextel Communications * 262,026 6,477 ----------- 19,733 ----------- Total Telecommunications 220,063 ----------- TRANSPORTATION 0.7% Airlines 0.3% Southwest Airlines 172,580 5,787 Delta 42,839 2,150 AMR * 51,297 2,010 USAir * 23,619 958 ----------- 10,905 ----------- Railroads 0.3% Union Pacific 85,284 4,328 Burlington Northern Santa Fe 135,705 3,842 CSX 74,478 1,932 Norfolk Southern 133,601 1,779 ----------- 11,881 ----------- Trucking, Shipping, Air Freight0.1% FedEx * 97,886 3,911 ----------- 3,911 ----------- Total Transportation 26,697 ----------- 19 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands UTILITIES 2.9% Electrical Utilities 2.8% Duke Energy 126,662 $ 10,798 AES * 161,202 8,927 Exelon 111,740 7,845 Southern 232,522 7,731 Dynegy (Class A) 109,760 6,154 Dominion Resources 81,926 5,489 American Electric Power(S) 110,517 5,139 Reliant Energy 101,243 4,385 Calpine * 97,100 4,376 FPL Group 60,536 4,344 TXU(S) 88,861 3,938 Public Service Enterprise(S) 73,632 3,580 Progress Energy 70,516 3,469 XCEL Energy(S) 117,682 3,420 Entergy(S) 76,361 3,231 Consolidated Edison(S) 72,400 2,787 PG&E 132,964 2,659 FirstEnergy 77,580 2,449 Constellation Energy Group 52,045 2,345 PPL 49,409 2,233 Ameren(S) 47,652 2,207 CINergy 54,153 1,902 DTE Energy(S) 48,488 1,888 Allegheny Energy 37,500 1,807 Edison International 112,068 1,751 Sempra Energy 69,780 1,622 GPU 42,567 1,567 Pinnacle West Capital 29,000 1,381 CMS Energy(S) 39,300 1,245 Niagara Mohawk * 55,033 918 111,587 ----------- Gas Utilities 0.1% NiSource 69,075 2,124 KeySpan *(S) 45,840 1,942 Kinder Morgan(S) 24,250 1,266 20 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- Shares/Par Value -------------------------------------------------------------------------------- In thousands NICOR 15,455 $ 667 Peoples Energy(S) 11,923 534 ONEOK 10,775 519 ----------- 7,052 ----------- Total Utilities 118,639 ----------- Total Common Stocks (Cost $2,833,160) 4,036,985 ----------- SHORT-TERM INVESTMENTS 0.7% U.S. Treasury Obligations 0.1% U.S. Treasury Bills, 5.8775% - 6.10%, 3/1/01 $ 4,450,000 4,406 ----------- 4,406 ----------- Money Market Funds 0.6% Reserve Investment Fund, 6.69%# 22,744,955 22,745 ----------- 22,745 ----------- Total Short-Term Investments (Cost $27,151) 27,151 ----------- 21 T. ROWE PRICE EQUITY INDEX 500 FUND --------------------------------------------------------------------------------
Value --------------------------------------------------------------------------------------------------- In thousands Total Investments in Securities 100.5% of Net Assets (Cost $2,860,311) $ 4,064,136 Futures Contracts In thousands Contract Unrealized Expiration Value Gain (Loss) ---------- --------- ----------- Long, 63 S&P 500 Stock Index contracts, $1,780,000 par of 6.10% U.S. Treasury Bills pledged as initial margin 3/01 $ 21,026 $ 190 Net payments (receipts) of variation margin to date (622) ---------- Variation margin receivable (payable) on open futures contracts (432) Other Assets Less Liabilities (18,854) ---------- NET ASSETS $4,044,850 ----------
# Seven-day yield * Non-income producing (S) All or a portion of this security is on loan at December 31, 2000 - See Note 2. ADR American Depository Receipt REIT Real Estate Investment Trust The accompanying notes are an integral part of these financial statements. 22 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- December 31, 2000 ----------------------------------- STATEMENT OF ASSETS AND LIABILITIES -------------------------------------------------------------------------------- In thousands Assets Investments in securities, at value (cost $2,860,311) $ 4,064,136 Securities lending collateral 130,080 Other assets 86,450 ---------------- Total assets 4,280,666 ---------------- Liabilities Obligation to return securities lending collateral 130,080 Other liabilities 105,736 ---------------- Total liabilities 235,816 ---------------- NET ASSETS $ 4,044,850 ---------------- Net Assets Consist of: Accumulated net investment income - net of $ 214 distributions Accumulated net realized gain/loss - net of (13,866) distributions Net unrealized gain (loss) 1,204,015 Paid-in-capital applicable to 113,933,824 shares of $0.01 par value capital stock outstanding; 1,000,000,000 shares of the Corporation authorized 2,854,487 ---------------- NET ASSETS $ 4,044,850 ---------------- NET ASSET VALUE PER SHARE $ 35.50 ---------------- The accompanying notes are an integral part of these financial statements. 23 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- ------------------------ STATEMENT OF OPERATIONS -------------------------------------------------------------------------------- In thousands Year Ended 12/31/00 Investment Income (Loss) Income Dividend $ 51,968 Interest 3,147 Securities lending 313 ------------ Total income 55,428 ------------ Expenses Shareholder servicing 8,749 Investment management 6,234 Prospectus and shareholder reports 411 Custody and accounting 243 Registration 95 Legal and audit 35 Directors 15 Miscellaneous 344 ------------ Total expenses 16,126 Expenses paid indirectly (12) ------------ Net expenses 16,114 ------------ Net investment income (loss) 39,314 ------------ Realized and Unrealized Gain (Loss) Net realized gain (loss) Securities 138,458 Futures (7,810) ------------ Net realized gain (loss) 130,648 ------------ Change in net unrealized gain or loss Securities (609,202) Futures (2,075) ------------ Change in net unrealized gain or loss (611,277) ------------ Net realized and unrealized gain (loss) (480,629) ------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (441,315) ------------ The accompanying notes are an integral part of these financial statements. 24 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- ---------------------------------- STATEMENT OF CHANGES IN NET ASSETS -------------------------------------------------------------------------------- In thousands Year Ended 12/31/00 12/31/99 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ 39,314 $ 42,265 Net realized gain (loss) 130,648 38,883 Change in net unrealized gain or loss (611,277) 734,191 --------------------------- Increase (decrease) in net assets from operations (441,315) 815,339 --------------------------- Distributions to shareholders Net investment income (39,254) (41,749) Net realized gain (9,469) (37,895) --------------------------- Decrease in net assets from distributions (48,723) (79,644) --------------------------- Capital share transactions * Shares sold 1,638,056 2,286,358 Distributions reinvested 47,595 77,944 Shares redeemed (2,199,966) (1,398,640) Redemption fees received 112 241 --------------------------- Increase (decrease) in net assets from capital share transactions (514,203) 965,903 --------------------------- Net Assets Increase (decrease) during period (1,004,241) 1,701,598 Beginning of period 5,049,091 3,347,493 --------------------------- End of period $ 4,044,850 $ 5,049,091 --------------------------- *Share information Shares sold 42,426 64,085 Distributions reinvested 1,236 2,133 Shares redeemed (57,355) (38,868) --------------------------- Increase (decrease) in shares outstanding (13,693) 27,350 The accompanying notes are an integral part of these financial statements. 25 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- December 31, 2000 ------------------------------- NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price Index Trust, Inc. (the trust) is registered under the Investment Company Act of 1940. The Equity Index 500 Fund (the fund), a diversified, open-end management investment company, is one of the portfolios established by the trust and commenced operations on March 30, 1990. The fund seeks to match the performance of the Standard & Poor's 500 Stock Index. The accompanying financial statements were prepared in accordance with generally accepted accounting principles, which require the use of estimates made by fund management. Valuation Equity securities listed or regularly traded on a securities exchange are valued at the last quoted sales price at the time the valuations are made. 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 and securities regularly traded in the over-the-counter market are valued at the mean of the latest bid and asked prices. Other equity securities are valued at a price within the limits of the latest bid and asked prices deemed by the Board of Directors, or by persons delegated by the Board, best to reflect fair value. Short-term debt securities are valued at amortized cost in local currency which, when combined with accrued interest, approximates fair value. Investments in mutual funds are valued at the closing net asset value per share of the mutual fund on the day of valuation. Financial futures contracts are valued at closing settlement prices. 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 Directors. Premiums and Discounts Premiums and discounts on debt securities are amortized for both financial reporting and tax purposes. 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 the 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 26 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- regulations and may differ from net investment income and realized gains determined in accordance with generally accepted accounting principles. Expenses paid indirectly reflect credits earned on daily uninvested cash balances at the custodian and are used to reduce the fund's custody charges. Payments ("variation margin") made or received by the fund to settle the daily fluctuations in the value of futures contracts are recorded as unrealized gains or losses until the contracts are closed. Unrealized gains and losses on futures contracts are included in Other assets and Other liabilities respectively, and in Change in net unrealized gain or loss in the accompanying financial statements. NOTE 2 - INVESTMENT TRANSACTIONS Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks or enhance performance. The investment objective, policies, program, and risk factors of the fund are described more fully in the fund's prospectus and Statement of Additional Information. Futures Contracts During the year ended December 31, 2000, the fund was a party to futures contracts, which provide for the future sale by one party and purchase by another of a specified amount of a specific financial instrument at an agreed upon price, date, time, and place. Risks arise from possible illiquidity of the futures market and from movements in security values. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102%-105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account by the fund's lending agent. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At December 31, 2000, the value of loaned securities was $112,136,000; aggregate collateral consisted of $130,080,000 in the securities lending collateral pool. Other Purchases and sales of portfolio securities, other than short-term securities, aggregated $411,981,000 and $896,387,000, respectively, for the year ended December 31, 2000. 27 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- 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. In order for the fund's capital accounts and distributions to shareholders to reflect the tax character of certain transactions, the following reclassifications were made during the year ended December 31, 2000. The reclassifications relate primarily to redemptions in-kind and a tax practice that treats a portion of the proceeds from each redemption of capital shares as a distribution of taxable net investment income and/or realized capital gain. The results of operations and net assets were not affected by the increases/(decreases) to these accounts. -------------------------------------------------------------------------------- Undistributed net realized gain $(136,708,000) Paid-in-capital 136,708,000 At December 31, 2000, the cost of investments for federal income tax purposes was substantially the same as for financial reporting and totaled $2,860,311,000. Net unrealized gain aggregated $1,203,825,000 at period-end, of which $1,485,501,000 related to appreciated investments and $281,676,000 to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price Associates), a wholly owned subsidiary of T. Rowe Price Group (Price Group). The investment management agreement between the fund and the manager provides for an annual investment management fee, of which $524,000 was payable at December 31, 2000. The fee is computed daily and paid monthly, and consists of an individual fund fee equal to 0.15% of average daily net assets. Under the terms of the investment management agreement, the manager is required to bear any expenses, excluding interest, taxes, brokerage, and extraordinary expenses, through December 31, 2002, which would cause the fund's ratio of total expenses to average net assets to exceed 0.35%. Thereafter, through December 31, 2004, the fund is required to reimburse the manager for 28 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- these expenses, provided that average net assets have grown or expenses have declined sufficiently to allow reimbursement without causing the fund's ratio of total expenses to average net assets to exceed 0.35%. Pursuant to prior agreements, $681,000 of management fees were not accrued by the fund for the year ended December 31, 2000. At December 31, 2000, unaccrued fees in the amount of $1,272,000 remain subject to reimbursement by the fund through December 31, 2001, and $681,000 through December 31, 2002. In addition, the fund has entered into agreements with Price Associates and two wholly owned subsidiaries of Price Associates, pursuant to which the fund receives certain other services. Price Associates computes the daily share price and maintains the financial records of the fund. T. Rowe Price Services, Inc. is the fund's transfer and dividend disbursing agent and provides shareholder and administrative services to the fund. T. Rowe Price Retirement Plan Services, Inc. provides subaccounting and recordkeeping services for certain retirement accounts invested in the fund. The fund incurred expenses pursuant to these related party agreements totaling approximately $8,034,000 for the year ended December 31, 2000, of which $727,000 was payable at period-end. The fund may invest in the Reserve Investment Fund and Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options only to mutual funds and other accounts sponsored by Price Group, and are not available to the public. The Reserve Funds pay no investment management fees. Distributions from the Reserve Funds to the fund for the year ended December 31, 2000, totaled $2,886,000 and are reflected as interest income in the accompanying Statement of Operations. 29 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- --------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS -------------------------------------------------------------------------------- To the Board of Directors of T. Rowe Price Index Trust, Inc. and Shareholders of T. Rowe Price Equity Index 500 Fund In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of T. Rowe Price Equity Index 500 Fund (one of the portfolios comprising T. Rowe Price Index Trust, Inc., hereafter referred to as the "Fund") at December 31, 2000, and the results of its operations, the changes in its net assets and the financial highlights for each of the fiscal periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2000 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Baltimore, Maryland January 19, 2001 30 T. ROWE PRICE EQUITY INDEX 500 FUND -------------------------------------------------------------------------------- ----------------------------------------------------------- TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 12/31/00 -------------------------------------------------------------------------------- We are providing this information as required by the Internal Revenue Code. The amounts shown may differ from those elsewhere in this report because of differences between tax and financial reporting requirements. The fund's distributions to shareholders included: . $1,220,000 from short-term capital gains, . $8,493,000 from long-term capital gains, subject to the 20% rate gains category. For corporate shareholders, $31,314,000 of the fund's distributed income and short-term capital gains qualified for the dividends-received deduction. -------------------------------------------------------------------------------- 31 For fund and account information or to conduct transactions, 24 hours, 7 days a week By touch-tone telephone Tele*Access 1-800-638-2587 By Account Access on the Internet www.troweprice.com/access For assistance with your existing fund account, call: Shareholder Service Center 1-800-225-5132 To open a brokerage account or obtain information, call: 1-800-638-5660 For the hearing impaired, call: 1-800-367-0763 Internet address: www.troweprice.com Plan Account Lines for retirement plan participants: The appropriate 800 number appears on your retirement account statement. T. Rowe Price Associates 100 East Pratt Street Baltimore, Maryland 21202 This report is authorized for distribution only to shareholders and to others who have received a copy of the prospectus appropriate to the fund or funds covered in this report. Walk-In Investor Centers: For directions, call 1-800-225-5132 or visit our Web site at www.troweprice.com/investorcenters Baltimore Area Downtown 105 East Lombard Street Owings Mills Three Financial Center 4515 Painters Mill Road Boston Area 386 Washington Street Wellesley Colorado Springs 2260 Briargate Parkway Los Angeles Area Warner Center 21800 Oxnard Street, Suite 270 Woodland Hills San Francisco Area 1990 North California Boulevard Suite 100 Walnut Creek Tampa 4200 West Cypress Street 10th Floor Washington, D.C. 900 17th Street N.W. Farragut Square [LOGO OF T. ROWE PRICE] T. Rowe Price Investment Services, Inc., Distributor.