<PAGE>
FELLOW SHAREHOLDERS
The stock market continued to struggle in the second quarter, reacting to
investors' worries about a variety of issues. Chief among them were rising
interest rates, the possibility of renewed inflationary pressures, and a
declining dollar. Performance varied widely from sector to sector with some
industry groups that are important to your portfolio, including energy, acting
well. The New Era Fund had a positive quarter and outperformed the broad
market, as measured by the unmanaged Standard & Poor's 500 Stock Index, in
both the second quarter and the first half (see below).
PERFORMANCE COMPARISON
Periods Ended 6/30/94
3 Months 6 Months
---------------------
New Era Fund 1.9% 0.5%
S&P 500 0.4 -3.4
- ----------------------------------
ECONOMIC REVIEW
The domestic economy grew strongly during the first quarter, based upon
revised numbers for the period, and continued to grow throughout the second
quarter. Growth in personal income was also impressive, and the unemploy- ment
rate remained stable at approximately 6%. The economy has been adding jobs at
a healthy pace so far this year.
Foreign economies generally seem to be improving as well. Europe shows signs
of life after stagnating during the last few years. Both the Japanese economy
and stock market also appear resilient following a difficult time in 1993.
Higher interest rates have hurt the stock market, and they are a powerful
offsetting force to the positive economic backdrop. The Federal Reserve raised
short-term interest rates four times during the first half, and could continue
to tighten during the second half.
Political uncertainties in the U.S. and abroad are also affecting the
financial markets. The Clinton Administration is struggling to reform the
health care system, and several foreign governments appear weak or unstable.
Japan, in particular, which has enjoyed a long period of stability, has
undergone changes in political leadership several times this year.
Despite these problems, the broad economic climate is improving, and this
should benefit cyclical companies that produce products serving international
markets. The overall outlook remains good.
MARKET ENVIRONMENT
There was substantial disparity in the performance of various industry groups
in the second quarter. The price of oil rose sharply in the period, leading to
advances among energy-related stocks. The more leveraged companies in the
industry-the energy service stocks and exploration and production
companies-responded best to rising oil prices. However, virtually all
energy-related stocks were helped by the improved outlook for oil.
On a negative note, precious metals producers were among the weakest stocks
in the portfolio despite a falling dollar and the prospect of rising
inflation; the price of gold actually declined during the second quarter amid
the uncertainty. Both gold prices and gold shares did well in 1993, and we
believe they are in a period of consolidation.
Other groups were mixed. Shares of companies in many cyclical groups, such
as chemicals and paper, held up in both the first quarter and first half of
the year. Companies with earnings shortfalls (or with anticipated shortfalls),
including a number of non-resource companies, had a relatively difficult time
during the last quarter. The critical question for all companies is whether
they can deliver satisfactory earnings in an uncertain environment. Shares of
companies that do so outperform the overall stock market.
<PAGE>
PORTFOLIO MANAGEMENT
We were net buyers of stocks during the second quarter and increased our
holdings in several industries that we feel have good prospects. The biggest
single industry purchase was forest products and paper.
A number of new companies appear in the portfolio for the first time. In the
forest products industry, we purchased JAMES RIVER, JEFFERSON SMURFIT, and
GEORGIA-PACIFIC. The first two companies are paper producers, which should
benefit from worldwide economic improvement. Georgia-Pacific is a diversified
forest products company that we owned previously. We sold the stock at higher
prices, and then repurchased it when it offered better value.
We added two platinum producers, IMPALA PLATINUM and RUSTENBURG PLATINUM, in
the precious metals area. These companies should do well because of healthier
economies as well as increased emphasis on pollution control in Europe and
other foreign countries.
In the energy-related industry, we purchased AMOCO, HELMERICH & PAYNE, and
UNITED MERIDIAN-the latter two are oil and gas production companies. Amoco, an
integrated petroleum producer with a strong domestic oil and gas position, is
currently undergoing a significant cost-reduction program.
Finally, we purchased FMC, a diversified chemical company that should profit
from a rising economy.
OUTLOOK
The economic outlook is mixed. Positive indicators include strengthening
economies in the U.S. and abroad. Your portfolio should be assisted by rising
commodity prices, which could adversely affect other types of companies and
industries. Natural resource stocks could also be helped by the falling
dollar.
The major cloud on the economic horizon is the prospect of higher interest
rates-a negative environment for financial assets. However, we believe
economic growth is strong enough to provide a positive framework for
investment in natural resource producers-a plus for the New Era Fund.
Respectfully submitted,
Signature
George A. Roche
President and Chairman of the
Investment Advisory Committee
July 20, 1994
<PAGE>
CONTRIBUTIONS TO THE NET ASSET VALUE PER SHARE
Three Months Ended June 30, 1994
- ------------------------------------------------------------------------------
TEN BEST CONTRIBUTORS
DuPont 9[cent]
Mobil 8
Scott Paper 6
Atlantic Richfield 5
Camco International 5
Schlumberger 5
American Cyanamid* 5
British Petroleum 3
Eli Lilly 3
Halliburton 3
- ------------------------------------------------------------------------------
Total 52[cent]
TEN WORST CONTRIBUTORS
Newmont Mining -9[cent]
Wal-Mart 8
TVX Gold 6
Placer Dome 4
American Barrick Resources 4
Great Lakes Chemical 4
Freeport-McMoRan Copper & Gold 3
IMC Fertilizer Group 3
Homestake Mining 1
GE 1
- ------------------------------------------------------------------------------
Total -43[cent]
- ------------------------------------------------------------------------------
*Position added
Six Months Ended June 30, 1994
- ------------------------------------------------------------------------------
TEN BEST CONTRIBUTORS
DuPont 18[cent]
Scott Paper 7
Camco International 7
Cyprus Amax Minerals 5
American Cyanamid* 5
Dow Chemical 4
Reuters 4
Alumax 3
Impala Platinum* 3
Smith International 3
- ------------------------------------------------------------------------------
Total 59[cent]
- ------------------------------------------------------------------------------
TEN WORST CONTRIBUTORS
American Barrick Resources -12[cent]
Newmont Mining 10
IMC Fertilizer Group 7
TVX Gold 6
Union Pacific 6
Pittston Minerals 5
Great Lakes Chemical 4
Petrie Stores 4
Placer Dome 4
Gannett 4
- ------------------------------------------------------------------------------
Total -62[cent]
- ------------------------------------------------------------------------------
<PAGE>
TWENTY-FIVE LARGEST HOLDINGS
June 30, 1994
Percent of
Company Net Assets
- ------------------------------------------------------------------------------
Wal-Mart 5.8%
Mobil 4.2
DuPont 3.8
Atlantic Richfield 3.7
Newmont Mining 3.2
Union Pacific 2.8
American Barrick Resources 2.8
Schlumberger 2.2
Royal Dutch Petroleum 2.1
Rouse 2.1
TVX Gold 2.0
Murphy Oil 1.7
Camco International 1.7
Kimberly-Clark 1.4
Northern Telecom 1.4
Pennzoil 1.3
Texaco 1.3
American Cyanamid 1.3
Halliburton 1.3
Amerada Hess 1.3
Placer Dome 1.3
Bristol-Myers Squibb 1.3
Scott Paper 1.2
Rustenburg Platinum 1.2
Eli Lilly 1.1
- ------------------------------------------------------------------------------
Total 53.5%
- ------------------------------------------------------------------------------
PERFORMANCE CONTRIBUTIONS
Six Months Ended June 30, 1994
Per-Share Percent of
Sector Contribution Net Assets
- ------------------------------------------------------ ------------ ----------
NATURAL RESOURCE-RELATED
Building & Real Estate 3[cent] 3%
Forest Products 10 6
Integrated Petroleum 0 14
Petroleum Exploration & Production 4 5
Energy Services 12 6
Precious Metals -29 13
Diversified Metals 7 4
Chemicals 24 9
Diversified Resources -19 7
TOTAL 12 67
CONSUMER & SERVICE
Merchandising -7 7
Consumer Durables 0 0
Miscellaneous -4 6
TOTAL -11 13
SCIENCE & TECHNOLOGY -3 2
MISCELLANEOUS -4 4
SUBTOTAL -6 86
RESERVES & INCOME 17 14
- ------------------------------------------------------------------------------
TOTAL PORTFOLIO 11[cent] 100%
- ------------------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS (VALUE IN THOUSANDS)
T. Rowe Price New Era Fund / June 30, 1994 (Unaudited)
COMMON STOCKS-86.6%
NATURAL RESOURCE-RELATED-67.3%
Value
--------
BUILDING & REAL ESTATE-3.2%
220,000 shs. General Growth Properties $4,977
30,000 Hilton..................................... 1,590
790,000 * Rouse...................................... 14,812
150,000 *[double Rouse ..................................... 2,813
dagger]
243,000 Taubman Centers............................ 2,795
26,987
FOREST PRODUCTS-5.8%
210,000 Albany International (Class A)............. 3,964
130,000 Georgia-Pacific............................ 7,784
100,000 International Paper........................ 6,625
317,000 * Jefferson Smurfit.......................... 5,032
230,000 Kimberly-Clark............................. 12,161
100,000 Mead....................................... 4,413
190,000 Scott Paper................................ 9,927
49,906
INTEGRATED PETROLEUM-13.9%
123,000 Amoco...................................... 7,011
308,300 Atlantic Richfield......................... 31,485
120,000 British Petroleum, ADR..................... 8,610
160,000 Chevron.................................... 6,700
440,000 Mobil...................................... 35,915
169,600 Royal Dutch Petroleum, ADR................. 17,744
190,000 Texaco..................................... 11,471
118,936
PETROLEUM EXPLORATION & PRODUCTION-5.1%
220,000 Amerada Hess............................... 10,835
2,000,000 * Gulf Canada Resources...................... 6,500
340,000 Murphy Oil................................. 14,535
300,000 Union Texas Petroleum...................... 5,362
100,000 * United Meridian............................ 1,500
181,000 Unocal..................................... 5,181
43,913
ENERGY SERVICES-6.4%
700,000 Camco International........................ 14,263
324,600 Halliburton................................ 10,955
270,000 Helmerich & Payne.......................... 7,155
320,000 Schlumberger............................... 18,920
200,000 * Smith International........................ 3,050
54,343
PRECIOUS METALS-12.6%
130,115 * Amax Gold.................................. 1,025
1,000,000 American Barrick Resources................. 23,875
101,200 shs. * Golden Star Resources $1,050
168,250 Homestake Mining........................... 3,155
300,000 Impala Platinum, ADR....................... 5,370
971,200 LAC Minerals............................... 8,255
686,455 Newmont Mining............................. 27,630
500,000 Placer Dome................................ 10,750
500,000 Rustenburg Platinum, ADR................... 9,850
3,000,000 *[double TVX Gold................................... 16,875
dagger]
107,835
DIVERSIFIED METALS-4.2%
100,000 Alcoa...................................... 7,313
175,000 * Alumax..................................... 4,484
20,100 Brush Wellman.............................. 319
270,000 Cyprus Amax Minerals....................... 8,032
370,000 Freeport-McMoRan Copper & Gold (Class A)... 8,232
300,000 Inco....................................... 7,313
35,693
CHEMICALS-9.0%
200,000 American Cyanamid.......................... 11,200
100,000 Dow Chemical............................... 6,537
559,000 DuPont..................................... 32,632
100,000 * FMC........................................ 5,413
175,000 Geon....................................... 4,550
115,000 Great Lakes Chemical....................... 6,224
70,000 Monsanto................................... 5,294
350,000 Pall....................................... 5,250
77,100
DIVERSIFIED RESOURCES-7.1%
255,000 * Dundee Bancorp (Class A)................... 1,799
130,000 GATX....................................... 5,265
250,000 * IMC Fertilizer Group....................... 8,656
140,000 Overseas Shipholding Group................. 2,555
225,000 Pennzoil................................... 11,531
371,300 Pittston Minerals.......................... 6,869
430,000 Union Pacific.............................. 24,349
61,024
TOTAL NATURAL RESOURCE-RELATED 575,737
CONSUMER & SERVICE-12.8%
MERCHANDISING-6.9%
360,000 Petrie Stores.............................. 8,865
2,052,640 Wal-Mart................................... 49,777
58,642
CONSUMER DURABLES-0.3%
120,000 * Coltec Industries.......................... 2,235
MISCELLANEOUS-5.6%
200,000 Bristol-Myers Squibb....................... 10,725
150,000 Corning.................................... 4,894
170,000 shs. Eli Lilly.................................. $9,669
195,000 Gannett.................................... 9,652
200,000 GE......................................... 9,325
100,000 Reuters, ADR............................... 3,900
48,165
TOTAL CONSUMER & SERVICE 109,042
SCIENCE & TECHNOLOGY-2.4%
340,000 * Amdahl..................................... 1,870
110,000 IBM........................................ 6,462
430,000 Northern Telecom........................... 11,879
TOTAL SCIENCE & TECHNOLOGY 20,211
MISCELLANEOUS --4.1% 35,153
TOTAL COMMON STOCKS (COST-$559,318) 740,143
CONVERTIBLE PREFERRED STOCKS-0.8%
370,000 James River Dep. Rep. 1/100 share.......... 6,521
TOTAL CONVERTIBLE PREFERRED STOCKS (COST-$6,383) 6,521
SHORT-TERM INVESTMENTS-13.5%
COMMERCIAL PAPER-9.4%
$5,000,000 ANZ Delaware, 4.48%, 8/24/94............... 4,943
7,000,000 Arco Coal Australia, 4(2), 4.42%, 9/6/94... 6,924
10,000,000 BNP U.S. Finance, 3.24 - 3.87%, 7/8 -
7/22/94.................................. 9,856
5,000,000 Caisse des Depots et Consignations, 4(2),
4.50%, 9/6/94............................ 4,940
5,000,000 Canadian Imperial Holding, 4.30%, 7/6/94... 4,974
6,042,000 Daimler-Benz North America, 4.30%, 7/19/94. 6,022
5,000,000 Dover, 4(2), 4.28%, 7/19/94................ 4,983
5,000,000 Fleet Financial Group, 4.32%, 7/22/94...... 4,977
5,600,000 John Hancock Capital, 4(2), 4.50%, 8/26/94. 5,540
5,000,000 National Australia Funding (Delaware),
4.41%, 8/1/94............................ 4,963
5,500,000 Preferred Receivables Funding, 4.50%,
9/1/94................................... 5,437
6,000,000 Statoil (Den Norske Stats Oljeselskap),
4.28%, 7/20/94........................... 5,979
5,500,000 U.S. Borax & Chemical, 4.50%, 8/30/94...... 5,438
6,000,000 US Bancorp, 4.43%, 8/15/94................. 5,938
80,914
MEDIUM-TERM NOTES-4.1%
$6,000,000 Ciesco L.P., VR, 3.970%, 10/25/94 $5,999
5,000,000 Citicorp, VR, 4.675%, 12/7/94.............. 4,998
4,000,000 Corporate Asset Fund (144a), VR, 4.316%,
12/12/94................................. 3,999
5,000,000 Goldman Sachs, VR, 4.386%, 12/2/94......... 5,000
5,000,000 Merrill Lynch, VR, 4.357%, 9/16/94......... 5,000
5,000,000 Morgan Stanley Group, VR, 4.663%, 3/15/95.. 5,000
5,000,000 Wells Fargo & Company, VR, 4.963%, 2/24/95. 5,012
35,008
TOTAL SHORT-TERM INVESTMENTS
(COST-$115,922) 115,922
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES-100.9%
(COST-$681,623) 862,586
- ------------------------------------------------------------------------------
Other Assets Less Liabilities-(0.9)% ................................ (7,711)
Net Assets Consisting of:
Accumulated net investment income - net of distributions.... $7,928
Accumulated realized gains/losses - net of distributions.... 22,580
Net unrealized appreciation of investment................... 180,963
Paid-in-capital applicable to 41,774,271 shares of $1.00 par
value capital stock outstanding; 200,000,000 shares
authorized................................................ 643,404
--------
NET ASSETS - 100.0% $854,875
--------
--------
NET ASSET VALUE PER SHARE $20.46
--------
--------
- ------------------------------------------------------------------------------
* Non-income producing
[double dagger] Securities contain some restriction as to public resale -
total of such securites at period-end amounts to 2.3% of net
assets.
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."
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 amount to 0.5% of net assets.
VR Variable rate
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF OPERATIONS
T. Rowe Price New Era Fund / Six Months Ended June 30, 1994 (Unaudited)
Amounts in
Thousands
------------------
INVESTMENT INCOME
Income
Dividends ............................................... $8,361
Interest ................................................ 2,074
---------
Total income ............................................ $10,435
Expenses
Investment management fees............................... 2,426
Shareholder servicing fees & expenses.................... 713
Custodian and accounting fees & expenses................. 82
Prospectus & shareholder reports......................... 39
Registration fees & expenses............................. 26
Legal & auditing fees.................................... 17
Directors' fees & expenses............................... 12
Proxy & annual meeting................................... 11
Miscellaneous............................................ 3
---------
Total expenses........................................... 3,329
--------
Net investment income...................................... 7,106
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss)
Securities............................................... 15,107
Foreign currency transactions............................ (31)
---------
Net realized gain.......................................... 15,076
Change in net unrealized appreciation or depreciation...... (20,554)
---------
Net loss on investments.................................... (5,478)
--------
INCREASE IN NET ASSETS FROM OPERATIONS..................... $1,628
--------
--------
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
T. Rowe Price New Era Fund (Unaudited)
Six
Months
Ended Year Ended
June 30, Dec. 31,
1994 1993
--------- ----------
Amounts in Thousands
--------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income.................................. $7,106 $14,024
Net realized gain on investments....................... 15,076 43,284
Change in net unrealized appreciation or depreciation
of investments....................................... (20,554) 46,387
--------- ----------
Increase in net assets from operations................. 1,628 103,695
--------- ----------
Distributions to shareholders
Net investment income.................................. - (13,203)
Net realized gain on investments....................... - (35,786)
--------- ----------
Decrease in net assets from distributions to
shareholders......................................... - (48,989)
--------- ----------
Capital share transactions
Sold 8,163 and 4,573 shares............................ 169,950 92,115
Distributions reinvested of 0 and 2,204 shares......... - 44,398
Redeemed 3,361 and 6,865 shares........................ (69,235) (138,286)
--------- ----------
Increase (decrease) in net assets from capital share
transactions......................................... 100,715 (1,773)
--------- ----------
Total increase .......................................... 102,343 52,933
NET ASSETS
Beginning of period.................................... 752,532 699,599
--------- ----------
End of period.......................................... $854,875 $752,532
--------- ----------
--------- ----------
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
T. Rowe Price New Era Fund / June 30, 1994 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price New Era 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 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 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 Directors, or by persons delegated by the Board, best
to reflect fair value. Securities regularly traded in the over-the-counter
market are valued at the latest bid price. Short-term debt securities are
valued at their cost which, when combined with accrued interest, approximates
fair value.
For purposes of determining the Fund's net asset value per share, all assets
and liabilities initially expressed in foreign currencies are converted into
U.S. dollars at the mean of the bid and offer prices of such currencies
against U.S. dollars quoted by a major bank.
<PAGE>
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.
B) Currency translation - Foreign currency amounts are translated into U.S.
dollars at prevailing exchange rates as follows: assets and liabilities at the
rate of exchange at the end of the respective period, purchases and sales of
securities, and income and expenses at the rate of exchange prevailing on the
dates of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains or losses is reflected as a component
of such gains or losses.
C) 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 $131,497,000 and $75,102,000, 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 $681,623,000 and net unrealized
appreciation aggregated $180,963,000, of which $210,052,000 related to
appreciated investments and $29,089,000 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 0.25% 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. The Fund is one of several T. Rowe Price mutual funds (the Underlying
Funds) in which the T. Rowe Price Spectrum Growth Fund (Spectrum) invests. In
accordance with an Agreement between Spectrum, the Underlying Funds, the
Manager and TRPS, expenses from the operation of Spectrum are borne by the
Underlying Funds based on each Underlying Fund's proportionate share of assets
owned by Spectrum. For the six months ended June 30, 1994, the Fund incurred
fees totalling approximately $643,000 for these services provided by related
parties. At June 30, 1994, these investment management and service fees
payable were $573,000.
<PAGE>
FINANCIAL HIGHLIGHTS
T. Rowe Price New Era Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
-------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, --------------------------------------------
1994 1993 1992 1991 1990 1989
-------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD....................... $20.35 $18.88 $19.86 $18.48 $21.73 $18.79
---------- -------- -------- -------- -------- --------
Investment Activities
Net investment income..................... 0.17 0.40 0.45 0.54 0.60 0.56
Net realized and unrealized gain (loss)... (0.06) 2.48 (0.04) 2.12 (2.52) 3.99
---------- -------- -------- -------- -------- --------
Total from Investment Activities............ 0.11 2.88 0.41 2.66 (1.92) 4.55
---------- -------- -------- -------- -------- --------
Distributions
Net investment income..................... - (0.38) (0.45) (0.55) (0.62) (0.56)
Net realized gain......................... - (1.03) (0.94) (0.73) (0.71) (1.05)
---------- -------- -------- -------- -------- --------
Total Distributions......................... - (1.41) (1.39) (1.28) (1.33) (1.61)
---------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD.............. $20.46 $20.35 $18.88 $19.86 $18.48 $21.73
---------- -------- -------- -------- -------- --------
---------- -------- -------- -------- -------- --------
- ----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Total Return................................ 0.5% 15.3% 2.1% 14.7% (8.8)% 24.3%
Ratio of Expenses to
Average Net Assets........................ 0.82% 0.80% 0.81% 0.85% 0.83% 0.83%
[dagger]
Ratio of Net Investment Income to
Average Net Assets........................ 1.74% 1.92% 2.22% 2.56% 2.81% 2.52%
[dagger]
Portfolio Turnover Rate..................... 21.1% 24.7% 16.9% 9.0% 9.0% 18.6%
[dagger]
Net Assets, End of Period
(in thousands)............................ $854,875 $752,532 $699,599 $756,817 $707,548 $826,582
- ----------------------------------------------------------------------------------------------------
<FN>
[dagger] Annualized.
</TABLE>
<PAGE>
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.