Semiannual Report
Financial
Services
Fund
June 30, 1997
T. Rowe Price
Report Highlights
Financial Services Fund
o Financial services stocks were strong during the first
half, propelled by continuing corporate earnings growth and
benign inflation.
o Your fund posted a solid return for the six months ended
June 30, surpassing the average return for similar funds
and almost matching the S&P 500.
o The two main areas of concentration continued to be
insurance and specialty financial services stocks, which
compose two-thirds of fund assets.
o EXEL, Travelers Group, and ADVANTA were the major
contributors to positive performance. Troubled Mercury
Finance, not a major holding, was a liability.
o While investors should temper their expectations for
near-term returns, several trends should benefit financial
services stocks over the long term.
Fellow Shareholders
Financial services stocks performed strongly in the first six
months of 1997, as continued corporate earnings growth and a
benign inflationary environment contributed to a rally in the
sector.
Performance Comparison
Since
Inception
Periods Ended 6/30/97 6 Months (9/30/96)
_________________________________________________________
Financial Services Fund 20.51% 36.66
%
S&P 500 20.61 30.66
Lipper Financial Services
Funds Average 19.89 33.22
Your fund responded to the favorable economic background by
gaining 20.51% in the first half, ahead of the Lipper Financial
Services Funds Average of 19.89% and basically in line with the
overall market's gain of 20.61%, as measured by the unmanaged
Standard & Poor's 500 Stock Index. Since the fund's inception
last September, it has generated a total return of 36.66%,
surpassing both the average return of 33.22% for the Lipper
benchmark and the S&P 500's 30.66% return.
INVESTMENT PHILOSOPHY
Since our first letter to shareholders for the period ended
December 31, 1996, many new investors have joined the fund.
Given the number of new investors, we would like to review our
investment philosophy so that all shareholders know where and
how their money is being put to work.
o Our investment approach will emphasize intensive,
fundamental research on each company. The research process
includes ongoing company visits, senior management
interviews, detailed financial analysis, and independent
confirmation of the company's business prospects through
customer, supplier, and competitor sources.
o While we strongly believe in portfolio diversification, we
will selectively and prudently concentrate fund holdings
when our conviction level is particularly high.
o We will seek out and maintain exposure to superior, well-
managed financial services companies that stand to benefit
from long-term investment themes operating in the sector.
o We will pay as much attention to downside risk as to upside
potential in our stock selection process. Reducing risk is
a key factor in producing superior returns over the entire
market cycle.
o We will strive to be as tax-efficient as possible in the
overall management of the fund. However, an important part
of our risk-reduction strategy is to invest in stocks that
pay dividends, providing an income cushion during market
downturns. Therefore, the fund is likely to pay income
dividends every year.
o We eat our own cooking. Your portfolio manager has a
significant stake in the fund.
We believe that consistent application of our six basic
investment principles will generate superior relative
performance over the long term.
STRATEGY
Our investment strategy has not changed substantively since our
last letter. However, we have slightly altered our weightings in
certain sectors in light of the changes we perceive in their
risk/reward characteristics. Our largest portfolio concentration
remains the insurance industry, which represented 41% of net
assets as of June 30, 1997, a six-percentage-point increase from
our allocation at the end of last year. We increased our
investment exposure to several Bermuda-based property/casualty
insurers because of their attractive valuations and fundamentals
relative to their U.S. counterparts. The strategy paid off in
June, when these stocks substantially outperformed the market.
We still believe this segment's valuation is quite attractive
relative to other financial services sectors and will most
likely continue to overweight it.
Our largest portfolio concentration remains the insurance
industry.
Our second-largest area of exposure is still the specialty
financial services sector, which was 26% of net assets as of
June 30, 1997, versus 23% at year-end. In April, we used
weakness in several of these stocks to establish positions that
significantly outperformed the market in May and June. While the
specialty financial area is typically more volatile than other
financial services sectors, we are likely to add selectively to
these holdings when opportunities arise. This is because their
prospects for growth and return on capital are generally greater
than those in other financial services sectors, in our view.
Sector Diversification
Insurance 41%
Reserves 9
Conglomerates 1
Bank and Trust 16
Miscellaneous Business Services 3
Specialty Financial Services 26
Computer Services and Software 3
Electrical Equipment 1
Based on net assets as of 6/30/97.
The portfolio's third-largest sector is banking, which
represented 16% of net assets on June 30 compared with 21% at
year-end. Bank stocks performed well in the first half of the
year, prompting us to reduce holdings when absolute valuation
levels for certain portfolio names appeared high relative to
their potential earnings growth. We continued to focus on money
center or super-regional banks, as we prefer to invest in
"consolidators" rather than speculate on highly valued possible
takeover candidates. We will selectively add to our regional
bank holdings when valuation and earnings fundamentals look
attractive and the potential for consolidation exists.
PORTFOLIO REVIEW
During the first half of the year, fund performance was
positively affected by EXEL, which contributed $0.14 to the net
asset value (NAV) per share. EXEL is an excess liability
insurance company based in Bermuda. Its core business generates
significant amounts of excess capital, which management is
redeploying to finance acquisitions, to enter new lines of
business, and to repurchase stock. We believe management's
enlightened capital management philosophy, along with the
company's relatively low valuation, continue to make the stock
attractive.
Other standouts in the first half included financial
conglomerate Travelers Group, credit card issuer ADVANTA, and
Erie Indemnity, one of the premier personal lines insurers in
the U.S.
The fund's NAV lost $0.11 after disclosures of financial
irregularities at Mercury Finance, a subprime auto lender. We
had originally spent a good deal of time reviewing financial
statements and prospects with company management and believed
the stock represented an attractive investment at the time we
made it. Our confidence in its potential was bolstered by the
Bank of Boston's willingness to take a 16% stake in the common
stock as payment for the sale of the bank's Fidelity Acceptance
subprime auto finance unit to Mercury Finance. Unfortunately, a
forced restatement of Mercury Finance's financial results for
the past few years was compelled by the fraudulent accounting
practices of management. We relied on those statements in our
analysis of the stock, and we are currently seeking redress in
a lawsuit. New management has now been hired at Mercury Finance,
and it appears that the situation has stabilized somewhat. We
believe Mercury Finance's franchise has some value and,
therefore, still have an investment in the shares. We continue
to monitor this situation closely and to review our options
frequently. Unfortunately, while we strive to limit downside
risk, situations such as this do occur, underscoring the risks
of equity investing. Other poor performers included specialty
financial lender Aames Financial, financial services software
provider Intuit, and PNC Bank.
We believe there are a number of positive long-term trends
affecting the financial services industry.
Tables following this letter contain a list of our top 25
holdings, as well as the major contributors to fund performance.
Overall, we were pleased with fund results during the first half
of the year and the nine months since inception.
OUTLOOK
As discussed in our year-end letter, we believe there are a
number of positive long-term trends affecting the financial
services industry. Perhaps the most significant one during the
next 10 to 15 years will be the need for aging baby boomers to
save for their retirement years. This group is the largest
consumer of financial services, and companies with the products
and distribution to meet boomer needs should benefit from this
trend. A second trend we see is the ongoing consolidation and
deregulation in the financial services area. Banks, insurance
companies, and securities firms, among others, are positioning
themselves to profit from a more relaxed regulatory environment
and to take advantage of the demographic trend mentioned. The
Financial Services Fund benefited from a number of takeovers
during its first nine months of operation.
Though our long-term outlook continues to be quite positive, we
are only cautiously optimistic about the near term. While the
current environment of subdued inflation, stable interest rates,
and moderate economic growth is very favorable for financial
services stocks, we are concerned about absolute levels of
valuation for stocks in this industry. Thus, we do not expect
the second half of 1997 to be as rewarding as the first half.
However, we do see attractive areas for investment, particularly
in smaller-capitalization financial stocks. We would consider
weighting the portfolio more in smaller-cap issues during the
next six months if large-cap financial stocks continue to
maintain their historically high absolute valuation levels. We
strongly believe that the dynamic nature of the financial
services sector, along with favorable secular trends, will
continue to reward investors with good results over the long
term. We will work diligently to provide investors with those
returns.
Respectfully submitted,
Daniel M. Theriault
President and Chairman of the Investment Advisory Committee
July 18, 1997
T. Rowe Price Financial Services Fund
Portfolio Highlights
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
6/30/97
_______________________________________________________
Mid Ocean Limited 3.7%
ACE Limited 3.2
EXEL 3.2
Travelers Group 2.9
Mutual Risk Management 2.8
______________________________________________________
Transamerica 2.6
Aames Financial 2.4
Chase Manhattan 2.4
Delta Financial 2.3
CWM Mortgage Holdings 2.2
______________________________________________________
St. Paul Companies 2.0
Wells Fargo 2.0
NationsBank 1.8
Nationwide Financial Services 1.8
UICI 1.7
______________________________________________________
PartnerRe Holdings 1.7
Citicorp 1.7
ADVANTA 1.6
Mellon Bank 1.6
Erie Indemnity 1.4
______________________________________________________
Intuit 1.4
W. R. Berkley 1.4
Fannie Mae 1.4
Freddie Mac 1.3
American Express 1.3
Total 51.8%
T. Rowe Price Financial Services Fund
Portfolio Highlights
CONTRIBUTIONS TO THE CHANGE IN NET ASSET VALUE PER SHARE
6 Months Ended 6/30/97
Ten Best Contributors
_______________________________________________________
EXEL 14(cents)
Travelers Group 11
ADVANTA * 10
Erie Indemnity * 9
Mutual Risk Management 8
ACE Limited 8
AmerUs Life * 8
GE 7
Mercury General * 6
Money Store * 6
_______________________________________________________
Total 87(cents)
6 Months Ended 6/30/97
Ten Worst Contributors
_______________________________________________________
Mercury Finance - 11(cents)
Aames Financial 8
Intuit 5
PNC Bank ** 3
SABRE Group Holdings ** 1
ACC Consumer Finance ** 1
Transamerica * 1
Willis-Corroon ADR 1
First Mariner Bancorp -
UICI -
_______________________________________________________
Total - 31(cents)
9 Months Ended 6/30/97
Ten Best Contributors
_______________________________________________________
Mutual Risk Management * 18(cents)
EXEL * 16
Travelers Group * 14
ACE Limited * 11
ADVANTA * 10
Mellon Bank * 9
Mid Ocean Limited * 9
Erie Indemnity * 9
NationsBank * 8
AmerUs Life * 8
_______________________________________________________
Total 112(cents)
9 Months Ended 6/30/97
Ten Worst Contributors
_______________________________________________________
Aames Financial * - 9(cents)
Mercury Finance * 8
Intuit * 5
First Investors Financial * 4
PNC Bank ** 3
H&R Block ** 2
ACC Consumer Finance ** 1
Transamerica * -
AmeriCredit ** -
Onyx Acceptance * -
_______________________________________________________
Total - 32(cents)
* Position added
** Position eliminated
T. Rowe Price Financial Services Fund
Performance Comparison
This chart shows the value of a hypothetical $10,000 investment
in the fund over the past 10 fiscal year periods or since
inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The index return
does not reflect expenses, which have been deducted from the
fund's return.
Performance Comparison
Financial Services Fund
As of 6/30/97
<TABLE>
<CAPTION>
Financial
S&P 500 Services Fund
_______________________________________________
<S> <C> <C>
9/30/96 $ 10,000 $ 10,000
6/97 13,066 13,666
</TABLE>
Total Return
Since Inception
Periods Ended 6/30/97 6 Months Inception Date
_________________________________________________________
Financial Services
Fund 20.51% 36.66% 9/30/96
Investment return and principal value represent past performance
and will vary. Shares may be worth more or less at redemption
than at original purchase.
T. Rowe Price Financial Services Fund
Unaudited
Financial Highlights
For a share outstanding throughout each period
6 Months 9/30/96
Ended Through
6/30/97 12/31/96
NET ASSET VALUE
Beginning of period $ 11.31 $ 10.00
Investment activities
Net investment income 0.06* 0.04*
Net realized and
unrealized gain (loss) 2.26 1.30
Total from
investment activities 2.32 1.34
Distributions
Net investment income - (.03)
NET ASSET VALUE
End of period $ 13.63 $ 11.31
____________________
Ratios/Supplemental Data
Total return 20.51%* 13.40%*
Ratio of expenses to
average net assets 1.25%*! 1.25%*!
Ratio of net investment
income to average
net assets 1.13%*! 1.71%*!
Portfolio turnover rate 83.7%! 5.6%!
Average commission rate paid $ 0.0521 $ 0.0389
Net assets, end of period
(in thousands) $ 88,923 $ 30,047
* Excludes expenses in excess of a 1.25% voluntary expense
limitation in effect through 12/31/98.
! Annualized.
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Financial Services Fund
Unaudited
June 30, 1997
Statement of Net Assets
Shares/Par Value
In thousands
Common Stocks 91.4%
FINANCIAL 83.6%
Bank and Trust 15.9%
BankBoston 11,850 $ 854
Chase Manhattan 21,880 2,124
Citicorp 12,610
1,520
First Chicago NBD 17,200 1,041
First Commerce 19,000 835
First Mariner Bancorp * 18,000 229
Fleet Financial Group 14,620 925
KeyCorp 17,000 950
Mellon Bank 31,330 1,414
NationsBank 24,800 1,599
Signet Banking 25,060 902
Wells Fargo 6,435 1,734
14,127
Insurance 41.1%
ACE Limited 38,600 2,852
American General 20,130 961
AmerUs Life 41,500 1,154
Chubb 10,000 669
Citizens Corp. 5,000 138
Erie Indemnity 32,800 1,279
EXEL 53,215 2,807
Harleysville Group 20,260 771
Hartford Life * 20,000 750
Hilb, Rogal and Hamilton 50,000 850
LaSalle Re Holdings 39,000 1,150
Mercury General 10,000 728
Mid Ocean Limited 62,110 3,257
NAC Re 15,000 726
Nationwide Financial
Services (Class A) 59,000 1,567
PartnerRe Holdings 39,960 1,523
PennCorp Financial Group 20,640 795
Protective Life 21,000 1,055
Provident 19,000 1,017
PXRE 26,863 $ 826
Sphere Drake Holdings 50,750 435
St. Paul Companies 23,000 1,754
Transamerica 25,000 2,339
Travelers Property Casualty
(Class A) 24,010 957
Trenwick Group 15,000 568
UICI * 51,940 1,529
Unionamerica Holdings PLC 50,000 1,031
UNUM 24,830 1,043
W. R. Berkley 21,250 1,243
Willis-Corroon ADR 68,620 768
36,542
Financial Services 26.6%
Aames Financial 115,250 2,132
ADVANTA (Class B) 40,000 1,422
Alleghany * 1,836 399
American Express 15,550 1,158
Capital Re 4,000 214
Countrywide Credit 36,000 1,123
CWM Mortgage Holdings 80,000 1,915
Delta Financial * 108,000 2,065
Fairfax Financial (144a)
(CAD) * 3,600 1,043
Fannie Mae 27,620 1,205
First Investors Financial * 63,265 467
First Sierra Financial * 100,000 1,087
Franklin Resources 11,835 859
Freddie Mac 34,440 1,184
Fund American Enterprises 5,600 588
John Nuveen 21,175 662
Leucadia National 4,500 139
Liberty Financial Companies 10,800 539
Mercury Finance 87,000 212
Money Store 30,000 858
Onyx Acceptance * 100,000 769
Travelers Group 41,133 2,594
Zurich Reinsurance 25,000 988
23,622
Total Financial 74,291
MISCELLANEOUS 0.5%
Conglomerates 0.5%
Berkshire Hathaway * 9 $ 425
Total Miscellaneous 425
CAPITAL EQUIPMENT 1.1%
Electrical Equipment 1.1%
GE 15,000 980
Total Capital Equipment 980
BUSINESS SERVICES AND
TRANSPORTATION 6.2%
Miscellaneous Business Services 2.8%
Mutual Risk Management 54,150 2,484
2,484
Computer Service and Software 3.4%
DST Systems * 26,000 866
First Data 21,000 923
Intuit * 54,700 1,253
3,042
Total Business Services and
Transportation 5,526
Total Common Stocks (Cost $71,237) 81,222
Short-Term Investments 10.7%
Certificates of Deposit 3.4%
Deutsche Bank AG, 6.00%,
7/29/97 1,000,000 1,000
Union Bank of California,
5.55%, 7/11/97 1,000,000 1,000
World Savings Bank, 5.57%,
7/8/97 1,000,000 1,000
3,000
Commercial Paper 7.3%
Banque Nationale de Paris,
5.55%, 7/14/97 1,000,000 998
BMW U.S. Capital, 5.56%,
8/25/97 1,000,000 991
Golden Managers Acceptance,
5.56%, 7/10/97 1,000,000 $ 999
Market Street Funding, 5.60%,
8/13/97 1,000,000 993
Investments in Commercial
Paper through a Joint Account
6.05 - 6.20%, 7/1/97 2,547,588 2,548
6,529
Total Short-Term Investments
(Cost $9,529) 9,529
Total Investments in Securities
102.1% of Net Assets
(Cost $80,766) $ 90,751
Other Assets Less Liabilities (1,828)
NET ASSETS $ 88,923
_________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 359
Accumulated net realized gain/loss -
net of distributions 2,007
Net unrealized gain (loss) 9,985
Paid-in-capital applicable to
6,522,422 shares of $0.0001 par
value capital stock outstanding;
1,000,000,000 shares authorized 76,572
NET ASSETS $ 88,923
_________
NET ASSET VALUE PER SHARE $ 13.63
_________
* Non-income producing
CAD Canadian dollar
144a Security was purchased pursuant to Rule 144a under the
Securities Act of 1933 and may not be resold subject
to that rule except to qualified institutional
buyers-total of such securities at period-end amounts
to 1.17% of net assets.
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Financial Services Fund
Unaudited
Statement of Operations
In thousands
6 Months
Ended
6/30/97
Investment Income
Income
Dividend $ 615
Interest 141
Total income 756
Expenses
Shareholder servicing 159
Investment management 146
Custody and accounting 44
Registration 23
Prospectus and shareholder reports 9
Legal and audit 8
Directors 3
Miscellaneous 5
Total expenses 397
Net investment income 359
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
on securities 2,007
Change in net unrealized gain or
loss on securities 8,800
Net realized and unrealized gain (loss) 10,807
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 11,166
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Financial Services Fund
Unaudited
Statement of Changes in Net Assets
In thousands
6 Months 9/30/96
Ended Through
6/30/97 12/31/96
Increase (Decrease) in Net Assets
Operations
Net investment income $ 359 $ 63
Net realized gain (loss) 2,007 6
Change in net unrealized
gain or loss 8,800 1,185
Increase (decrease) in net
assets from operations 11,166 1,254
Distributions to shareholders
Net investment income - (74)
Capital share transactions*
Shares sold 72,679 31,393
Distributions reinvested - 71
Shares redeemed (24,969) (2,744)
Increase (decrease) in net
assets from capital
share transactions 47,710 28,720
Net equalization - 47
Net Assets
Increase (decrease) during period 58,876 29,947
Beginning of period 30,047 100
End of period $ 88,923 $ 30,047
*Share information
Shares sold 5,950 2,889
Distributions reinvested - 6
Shares redeemed (2,084) (248)
Increase (decrease) in shares
outstanding 3,866 2,647
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Financial Services Fund
Unaudited June 30, 1997
Notes to Financial Statements
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Financial Services Fund, Inc. (the fund) is
registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company and
commenced operations on September 30, 1996.
Valuation Equity securities 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. 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.
For purposes of determining the fund's net asset value per
share, the U.S. dollar value of all assets and liabilities
initially expressed in foreign currencies is determined by using
the mean of the bid and offer prices of such currencies against
U.S. dollars quoted by a major bank.
Short-term debt securities are valued at amortized 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 Directors.
Currency Translation Assets and liabilities are translated into
U.S. dollars at the prevailing exchange rate at the end of the
reporting period. Purchases and sales of securities and income
and expenses are translated into U.S. dollars at the prevailing
exchange rate on the dates of such transactions. The effect of
changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such
gains and losses.
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 regulations and may differ from those determined in
accordance with generally accepted accounting principles.
Effective January 1, 1997, the fund discontinued its practice of
equalization. The results of operations and net assets were not
affected by this change.
NOTE 2 - INVESTMENT TRANSACTIONS
Commercial Paper Joint Account The fund, and other affiliated
funds, may transfer uninvested cash into a commercial paper
joint account, the daily aggregate balance of which is invested
in high-grade commercial paper. All securities purchased by the
joint account satisfy the fund's criteria as to quality, yield,
and liquidity.
Other Purchases and sales of portfolio securities, other than
short-term securities, aggregated $67,912,000 and $24,785,000,
respectively, for the period ended June 30, 1997.
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, 1997, the aggregate cost of investments for federal
income tax and financial reporting purposes was $80,766,000, and
net unrealized gain aggregated $9,985,000, of which $11,259,000
related to appreciated investments and $1,274,000 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, of which $46,000 was payable at June
30, 1997. The fee is computed daily and paid monthly, and
consists 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
0.30% for assets in excess of $80 billion.
At June 30, 1997, and for the six months then ended, the
effective annual group fee rate was 0.33%. The fund pays a pro
rata share of the group fee based on the ratio of its net assets
to those of the group.
Under the terms of the investment management agreement, the
manager is required to bear any expenses through December 31,
1998, which would cause the fund's ratio of expenses to average
net assets to exceed 1.25%. Thereafter, through December 31,
2000, the fund is required to reimburse the manager for these
expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement
without causing the fund's ratio of expenses to average net
assets to exceed 1.25%. Pursuant to this agreement, $68,000 of
management fees were not accrued by the fund for the six months
ended June 30, 1997. Additionally, $26,000 of unaccrued 1996
fees and expenses are subject to reimbursement through December
31, 2000.
In addition, the fund has entered into agreements with the
manager and two wholly owned subsidiaries of the manager,
pursuant to which the fund receives certain other services. The
manager 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 $151,000 for the
six months ended June 30, 1997, of which $28,000 was payable at
period-end.
T. Rowe Price Shareholder Services
Investment Services And Information
Knowledgeable Service Representatives
By Phone 1-800-225-5132 Available Monday through Friday from 8
a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
Account Services
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
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Distribution Options Reinvest all, some, or none of your
distributions.
Automated 24-Hour Services Including Tele*Access(registered
trademark) and T. Rowe Price OnLine.
Discount Brokerage*
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates.
Investment Information
Combined Statement Overview of your T. Rowe Price accounts.
Shareholder Reports Fund managers' reviews of their strategies
and results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund
results.
Insights Educational reports on investment strategies and
financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing,
Personal Strategy Planner, Retirees Financial Guide, and
Retirement Planning Kit.
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U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Global Government Bond
Emerging Markets Bond
International Bond
Money Market Funds
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
Blended Asset Funds
Balanced
Personal Strategy Income
Personal Strategy Balanced
Personal Strategy Growth
Tax-Efficient Balanced
T. Rowe Price No-Load
Variable Annuity
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
** Formerly the OTC Fund.
Please call for a prospectus. Read it carefully before you
invest or send money.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by
Security Benefit Life Insurance Company. In New York, it
[#FSB201(11-96)] is issued by First Security Benefit Life
Insurance Company of New York, White Plains, NY. T. Rowe Price
refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe
Price Insurance Agency, Inc.; and T. Rowe Price Insurance Agency
of Texas, Inc. The Security Benefit Group of Companies and the
T. Rowe Price companies are not affiliated. The variable annuity
may not be available in all states. The contract has
limitations. Call a representative for costs and complete
details of the coverage.
T. Rowe Price Discount Brokerage
Discount Brokerage
A Division of T. Rowe Price Investment Services, Inc., Member
NASD/SIPC
This low-cost service gives you the opportunity to easily
consolidate all your investments with one company. Through T.
Rowe Price Discount Brokerage, you can buy and sell individual
securities-stocks, bonds, options, and others-at considerable
commission savings over full-service brokers.* We also provide
a wide range of services, including:
Automated Telephone and Computer Services You can enter trades,
access quotes, and review account information 24 hours a day,
seven days a week. Any trades executed through these programs
save you an additional 10% on commissions.**
Investor Information A variety of informative reports, such as
our Brokerage Insights series, S&P Market Month newsletter, and
select stock reports, can help you better evaluate economic
trends and investment opportunities.
Dividend Reinvestment Service Virtually all stocks held in
customer accounts are eligible for this service, free of charge.
* Based on a February 1997 telephone survey that compared
our commission rates on stock transactions of various
sizes with those of other full-service and discount
brokerages. Commission rates will vary based on size and
nature of trades. Services vary by firm. For additional
information concerning our commission rates and services,
call 1-800-638-5660.
** Discount applies to our current commission schedule;
subject to our $35 minimum commission.
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(registered trademark):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
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 of the
T. Rowe Price Financial Services Fund.
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
Invest With Confidence(registered trademark)
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor.
F17-051 6/30/97