PRICE T ROWE NEW ERA FUND INC
497K3B, 2000-10-16
Previous: NPC HOLDINGS INC, 10KSB, EX-27, 2000-10-16
Next: EPICEDGE INC, 8-K, 2000-10-16



<PAGE>


                                                             October 1, 2000
 FUND PROFILE
T. ROWE PRICE
New Era Fund

 A stock fund seeking capital appreciation through companies that own or develop
 natural resources and other basic commodities.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICELOGO
<PAGE>


<PAGE>



                                                                           1

FUND PROFILE
---------------------------------------------------------
 What is the fund's objective?

   The fund seeks to provide long-term capital growth primarily through the
   common stocks of companies that own or develop natural resources and other
   basic commodities, and also through the stocks of selected nonresource growth
   companies.


 What is the fund's principal investment strategy?

   We normally invest about two-thirds of fund assets in the common stocks of
   natural resource companies whose earnings and tangible assets could benefit
   from accelerating inflation. We also invest in other growth companies with
   strong potential for earnings growth that do not own or develop natural
   resources. The relative percentages invested in resource and nonresource
   companies can vary depending on economic and monetary conditions and our
   outlook for inflation. The natural resource companies held by the fund
   typically own, develop, refine, service, or transport resources, including
   energy, metals, forest products, real estate, and other basic commodities. In
   selecting natural resource stocks, we look for companies whose products can
   be produced and marketed profitably when both labor costs and prices are
   rising. In the mining area, for example, we might look for a company with the
   ability to expand production and maintain superior exploration programs and
   production facilities.

   At least half of fund assets will be invested in U.S. securities, but up to
   50% of total assets may be invested in foreign securities. We may also buy
   other types of securities, including futures and options, in keeping with the
   fund's objective.

   The fund may sell securities for a variety of reasons, such as to secure
   gains, limit losses, or redeploy assets into more promising opportunities.

   Further information about the fund's investments, including a review of
   market conditions and fund strategies and their impact on performance, is
   available in the annual and semiannual shareholder reports. To obtain free
   copies of either of these documents, call 1-800-638-5660.


 What are the main risks of investing in the fund?

   As with all equity funds, this fund's share price can fall because of
   weakness in the broad market, a particular industry, or specific holdings.
   The market as a whole can decline for many reasons, including adverse
   political or economic developments here or abroad, changes in investor
   psychology, or heavy institutional selling. The prospects for an industry or
   company may deteriorate because of a variety of factors, including
   disappointing earnings or changes in the competitive environment. In
   addition, our assessment of companies held in the fund may prove incorrect,
   resulting in losses or poor per-
<PAGE>



                                                                               2


                                                                           2

FUND PROFILE
---------------------------------------------------------
   formance even in a rising market. Finally, the fund's investment approach
   could fall out of favor with the investing public, resulting in lagging
   performance versus other types of stock funds.

   The fund is less diversified than most stock funds and could therefore
   experience sharp price declines when conditions are unfavorable to its
   sector. For instance, since the fund attempts to invest in companies that may
   benefit from accelerating inflation low inflation could lessen returns. The
   rate of earnings growth of natural resource companies may be irregular since
   these companies are strongly affected by natural forces, global economic
   cycles, and international politics. For example, stock prices of energy
   companies can fall sharply when oil prices fall. Real estate companies are
   influenced by interest rates and other factors.

   The fund's investments in foreign securities, or even in U.S. companies with
   significant overseas investments, are also subject to the risk that some
   holdings may lose value because of declining foreign currencies or adverse
   political or economic events overseas. While currency risk may be somewhat
   reduced because many commodities markets are dollar based, the fund's
   exposure to foreign political and economic risk will be heightened by
   investments in companies with operations in emerging markets.

   Investments in futures and options, if any, are subject to additional
   volatility and potential losses.

   As with any mutual fund, there can be no guarantee the fund will achieve its
   objective.

  . The fund's share price may decline, so when you sell your shares, you may
   lose money.


 How can I tell if the fund is appropriate for me?

   Consider your investment goals, your time horizon for achieving them, and
   your tolerance for risk. If you are willing to accept the risks of investing
   in U.S. and foreign companies whose earnings are especially influenced by
   worldwide economic and monetary conditions in pursuit of long-term capital
   growth, the fund could be appropriate for you. This fund should not represent
   your complete investment program or be used for short-term trading purposes.

   The fund can be used in both regular and tax-deferred accounts, such as IRAs.

  . Equity investors should have a long-term investment horizon and be willing
   to wait out bear markets.
<PAGE>



                                                                           3

FUND PROFILE
---------------------------------------------------------
 How has the fund performed in the past?

   The bar chart showing calendar year returns and the average annual total
   return table indicate risk by illustrating how much returns can differ from
   one year to the next and over time. Fund past performance is no guarantee of
   future returns.

   The fund can also experience short-term performance swings, as shown by the
   best and worst calendar quarter returns during the years depicted in the
   chart.

LOGO

<TABLE>
<CAPTION>
                                 Calendar Year Total Returns
          "89"   "90"   "91"   "92"  "93"   "94"  "95"   "96"   "97"   "98"   "99"
 -----------------------------------------------------------------------------------------
 <S>      <C>    <C>    <C>    <C>   <C>    <C>   <C>    <C>    <C>    <C>    <C>    <S>
          24.29  -8.76  14.74  2.08  15.33  5.17  20.76  24.25  10.96  -9.88  21.22
 -----------------------------------------------------------------------------------------
</TABLE>


          Quarter ended              Total return

 Best quarter                            6/30/99 11.34%

 Worst quarter                           9/30/98 -12.41%


<TABLE>
 Table 1  Average Annual Total Returns
<CAPTION>
                                         Periods ended 09/30/2000
                                     1 year      5 years       10 years
 -------------------------------------------------------------------------
 <S>                               <C>          <C>          <C>
  New Era Fund                          12.03%       11.81%        11.09%

  S&P 500 Stock Index                   13.28        21.69         19.44
  Lipper Natural Resources Funds        20.90        10.49          8.52
  Average
 -------------------------------------------------------------------------
</TABLE>



 These figures include changes in principal value, reinvested dividends, and
 capital gain distributions, if any.
<PAGE>



                                                                               4


                                                                           4

FUND PROFILE
---------------------------------------------------------
 What fees or expenses will I pay?

   The fund is 100% no load. There are no fees or charges to buy or sell fund
   shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
   are no 12b-1 fees.


<TABLE>
 Table 2  Fees and Expenses of the Fund
<CAPTION>
                                               Annual fund operating expenses
                                        (expenses that are deducted from fund assets)
 -------------------------------------------------------------------------------------
 <S>                                   <C>
  Management fee                                           0.57%/ // /
  Other expenses                                           0.17%
  Total annual fund operating                              0.74%/ // /
  expenses
 -------------------------------------------------------------------------------------
</TABLE>


   Example.  The following table gives you a rough idea of how expense ratios
   may translate into dollars and helps you to compare the cost of investing in
   this fund with that of other funds. Although your actual costs may be higher
   or lower, the table shows how much you would pay if operating expenses remain
   the same, you invest $10,000, earn a 5% annual return, and hold the
   investment for the following periods:

<TABLE>
<CAPTION>
   1 year       3 years       5 years        10 years
 -------------------------------------------------------
 <S>          <C>           <C>           <C>
     $76          $237          $411           $918
 -------------------------------------------------------
</TABLE>



 Who manages the fund?

   The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
   Rowe Price and its affiliates manage investments for individual and
   institutional accounts. The company offers a comprehensive array of stock,
   bond, and money market funds directly to the investing public.

   Charles M. Ober manages the fund day-to-day and has been chairman of its
   Investment Advisory Committee since 1997. He joined T. Rowe Price in 1980 and
   has been managing investments since 1987.


 Note: The following questions and answers about buying and selling shares and
 services do not apply to employer-sponsored retirement plans. If you are a
 participant in one of these plans, please call your plan's toll-free number for
 additional information.


 How can I purchase shares?

   Fill out the New Account Form and return it with your check in the postpaid
   envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
   or transfers to minors). The minimum subsequent investment is $100 ($50
<PAGE>



                                                                           5

FUND PROFILE
---------------------------------------------------------
   for IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can
   also open an account by bank wire, by exchanging from another T. Rowe Price
   fund, or by transferring assets from another financial institution.


 How can I sell shares?

   You may redeem or sell any portion of your account on any business day.
   Simply write to us or call. You can also access your account at any time via
   Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
   entire family of domestic and international funds. Restrictions may apply in
   special circumstances, and some redemption requests need a signature
   guarantee. A $5 fee is charged for wire redemptions under $5,000.


 When will I receive income and capital gain distributions?

   The fund distributes income and net capital gains, if any, at year-end. For
   regular accounts, income and short-term gains are taxable at ordinary income
   rates, and long-term gains are taxable at the capital gains rate.
   Distributions are reinvested automatically in additional shares unless you
   choose another option, such as receiving a check. Distributions paid to IRAs
   and employer-sponsored retirement plans are automatically reinvested.


 What services are available?

   A wide range, including but not limited to:

  . retirement plans for individuals and large and small businesses;

  . automated information and transaction services by telephone or computer;

  . electronic transfers between fund and bank accounts;

  . automatic investing and automatic exchange;

  . brokerage services; and

  . asset manager accounts.
<PAGE>

FUND PROFILE
---------------------------------------------------------
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
 RPS F41-035
 T. Rowe Price Investment Services, Inc., Distributor
<PAGE>



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission