Annual Report - Financial Statements
T. Rowe Price
Tax-free Short-Intermediate Fund
February 28, 1997
Portfolio Highlights
SECTOR Diversification
Percent of Percent of
Net Assets Net Assets
8/31/96 2/28/97
Tax-Free Short-Intermediate Fund
Prerefunded Bonds 29% 25%
Dedicated Tax Revenue 10 13
General Obligation - Local 10 12
General Obligation - State 16 10
Hospital Revenue 5 9
Air and Sea Transportation
Revenue 4 8
Industrial and Pollution
Control Revenue 3 5
Educational Revenue 4 5
Lease Revenue 5 4
Solid Waste Revenue 4 4
Nuclear Revenue 4 3
All Others 5 2
Other Assets Less Liabilities 1 -
______________________________________________________________
___
Total 100% 100%
T. Rowe Price Tax-Free Short-Intermediate Fund
For a share outstanding throughout each period
Financial Highlights
Year
Ended
2/28/972/29/96 2/28/95 2/28/942/28/93
NET ASSET VALUE
Beginning of
period $ 5.37 $ 5.25 $ 5.32 $ 5.36 $ 5.22
Investment
activities
Net investment
income 0.23 0.23 0.22 0.22 0.24
Net realized and
unrealized gain
(loss) (0.02) 0.12 (0.07 ) (0.04)0.14
Total from
investment
activities 0.21 0.35 0.15 0.18 0.38
Distributions
Net investment
income (0.23) (0.23 ) (0.22) (0.22)
(0.24 )
NET ASSET VALUE
End of period $ 5.35 $ 5.37 $ 5.25 $ 5.32 $ 5.36
______________________________________________________________
_________
Ratios/Supplemental Data
Total return 4.02% 6.87% 2.91% 3.49% 7.51%
Ratio of expenses to
average net assets 0.56% 0.57% 0.59% 0.60% 0.63%
Ratio of net investment
income to average
net assets 4.30% 4.39% 4.19% 4.18% 4.61%
Portfolio
turnover rate 84.3% 69.9% 93.1% 51.1% 38.5%
Net assets,
end of period
(in thousands) $443,631$445,228$454,084$540,728$454,162
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Tax-Free Short-Intermediate Fund
February 28, 1997
Statement of Net Assets
Par Value
In thousands
ALABAMA 1.7%
Jefferson County,
Capital Appreciation
Warrants, GO
Zero Coupon, 4/1/98
(MBIA Insured) $ 3,545 $ 3,402
Marshall County Health Care Auth.
Guntersville-Arab Medical Center
10.25%, 10/1/13
(Crossover Refunded) 3,920 4,326
Total Alabama (Cost $7,640) 7,728
ARIZONA 3.9%
Arizona, COP, 5.40%, 9/1/98
(AMBAC Insured) 1,000 1,022
Arizona Transportation Board
6.35%, 7/1/05
(Prerefunded 7/1/01!) 6,400 6,986
Maricopa County, Mesa Unified
School Dist. No. 4, GO
Zero Coupon, 7/1/98
(FGIC Insured) 2,675 2,543
Mesa, GO, 6.75%, 7/1/98
(AMBAC Insured) 5,800 6,021
Phoenix, Street and Highway User
7.30%, 7/1/98
(Escrowed to Maturity) 900 942
Total Arizona (Cost $16,948) 17,514
CALIFORNIA 7.0%
California, GO, 5.50%, 6/1/02 3,000 3,141
California Housing Fin.
Agency, 5.75%, 8/1/98 500 509
Central Coast Water Auth.,
State Water Project
Regional Fac.
6.60%, 10/1/22 (AMBAC Insured)
(Prerefunded 10/1/02!) 20,000 22,554
Orange County, Airport,
5.00%, 7/1/98 (MBIA Insured)*** 3,000 3,039
Upland, San Antonio Community Hosp.,
COP, 5.00%, 1/1/01 1,785 1,802
Total California (Cost $30,741) 31,045
COLORADO 3.0%
Denver City and County Airport
7.30%, 11/15/00 * 3,750 4,067
7.50%, 11/15/25 * 4,640 4,815
6.00%, 11/15/03
(MBIA Insured) * 3,965 4,228
Total Colorado (Cost $13,017) 13,110
CONNECTICUT 1.9%
Connecticut Special Assessment,
Unemployment Compensation
5.50%, 5/15/00 (AMBAC Insured) $ 8,300 $8,618
Total Connecticut (Cost $8,537) 8,618
DISTRICT OF COLUMBIA 0.6%
Metropolitan Washington
D.C. Airports Auth.
6.80%, 10/1/98
(FGIC Insured) * 875 912
6.00%, 10/1/00
MBIA Insured) * 1,500 1,579
Total District of Columbia
(Cost $2,459) 2,491
FLORIDA 6.2%
Dade County, Resource
Recovery Fac.
6.00%, 10/1/99
(AMBAC Insured) * 10,740 11,185
Dunedin Utility Systems
6.00%, 10/1/14
(FGIC Insured)
(Prerefunded 10/1/99!) 3,000 3,143
Hillsborough County
School Dist., GO
6.95%, 8/15/99
(MBIA Insured) 5,425 5,796
Jacksonville, Excise Tax,
6.90%, 10/1/98 (MBIA Insured) 3,610 3,784
Jacksonville HFA,
Genesis Rehabilitation Hosp.
VRDN (Currently 3.45%) 3,800 3,800
Total Florida (Cost $27,472) 27,708
GEORGIA 2.2%
Atlanta Airport Fac.,
5.50%, 1/1/01 (AMBAC Insured) 5,000 5,206
Metropolitan Atlanta
Rapid Transit Auth., Sales Tax
5.90%, 7/1/99 1,850 1,922
Municipal Electric Auth. of Georgia
6.80%, 1/1/98 1,000 1,025
7.40%, 1/1/98 1,500 1,520
Total Georgia (Cost $9,529) 9,673
ILLINOIS 2.1%
Chicago - O' Hare Int'l.
Airport, Int'l Terminal
7.25%, 1/1/00
(MBIA Insured) * $ 2,000 $ 2,148
Cook County, GO
7.375%, 11/1/08 (MBIA Insured)
(Prerefunded 11/1/99!) 5,500 6,045
Southwestern Illinois Dev. Auth.,
Environmental Improvement
VRDN (Currently 3.55%) * 1,200 1,200
Total Illinois (Cost $9,342) 9,393
INDIANA 2.6%
Indiana HFFA
Clarion Health Partners
6.00%, 2/15/00 5,330 5,555
6.00%, 2/15/01 5,600 5,882
Total Indiana (Cost $11,383) 11,437
LOUISIANA 5.3%
Lake Charles Harbor and
Terminal Dist., Port Fac.
DuPont (CONOCO),
VRDN (Currently 3.50%) 700 700
Louisiana, GO
6.00%, 8/1/00 (FGIC Insured) 6,000 6,327
8.00%, 5/1/98 (MBIA Insured) 2,000 2,095
Louisiana Offshore Terminal Auth.,
LOOP, 5.40%, 9/1/98 12,500 12,726
Louisiana PFA, Student Loan,
6.10%, 9/1/00 1,425 1,480
Total Louisiana (Cost $23,110) 23,328
MARYLAND 8.7%
Maryland, GO
5.00%, 3/1/02 7,285 7,489
6.75%, 10/15/99 3,000 3,206
Maryland DOT, 6.50%, 11/1/99 3,895 4,132
Maryland Energy Fin. Administration
Wheelabrator
5.30%, 12/1/00 * $ 825 $ 839
5.45%, 12/1/01 * 1,185 1,211
Maryland HHEFA
Francis Scott Key Medical Center
6.75%, 7/1/23 (FGIC Insured)
(Prerefunded 7/1/00!) 5,560 6,081
Howard County General Hosp.
8.25%, 7/1/18
(Prerefunded 7/1/98!) 2,600 2,801
Kennedy Kreiger Institute
VRDN (Currently 3.35%) 500 500
Loyola College
VRDN (Currently 3.30%)
(MBIA Insured) 1,100 1,100
Peninsula Regional Medical Center
4.50%, 7/1/01 1,200 1,191
4.60%, 7/1/02 1,175 1,166
4.70%, 7/1/03 650 644
Montgomery County, Consolidated
Public Improvement, GO
6.80%, 11/1/00
(Prerefunded 11/1/99!) 3,315 3,606
Northeast Maryland
Waste Disposal Auth.
Southwest Resource Recovery Fac.
7.00%, 1/1/01 (MBIA Insured) 1,000 1,089
7.05%, 1/1/02 (MBIA Insured) 2,430 2,683
Washington Suburban Sanitary
Dist., GO, 5.00%, 6/1/00 800 820
Total Maryland (Cost $37,929) 38,558
MASSACHUSETTS 9.1%
Boston, GO, 5.00%,
11/1/99 (FGIC Insured) 2,100 2,150
Massachusetts, GO
5.50%, 7/1/00 12,000 12,458
7.25%, 7/1/05
(Prerefunded 7/1/98!) 2,175 2,306
7.625%, 6/1/08
(Prerefunded 6/1/01!) 4,000 4,567
Massachusetts Bay
Transportation Auth.
7.00%, 3/1/22
(Prerefunded 3/1/01!) $ 5,000 $ 5,573
7.80%, 3/1/10
(Prerefunded 3/1/01!) 6,500 7,430
Massachusetts Turnpike Auth.,
GO, BAN, 5.00%, 6/1/99 6,000 6,120
Total Massachusetts (Cost $39,975) 40,604
MINNESOTA 0.5%
Minnesota PFA, Water Pollution
Control, 5.70%, 3/1/99 2,000 2,072
Total Minnesota (Cost $1,994) 2,072
MISSISSIPPI 2.3%
Mississippi Higher Ed.
Assistance Corp.
Student Loan
6.00%, 7/1/00 5,000 5,173
6.10%, 1/1/01 5,000 5,164
Total Mississippi (Cost $10,290) 10,337
MISSOURI 2.4%
Missouri HEFA, Washington Univ.,
VRDN (Currently 3.45%) 1,000 1,000
Missouri Higher Ed. Loan Auth.,
Student Loan
5.375%, 2/15/99 2,600 2,654
St. Louis
Lambert Int'l. Airport
6.00%, 7/1/02 (FGIC Insured) * 3,270 3,475
6.00%, 7/1/03 (FGIC Insured) * 3,465 3,694
Total Missouri (Cost $10,636) 10,823
NEW JERSEY 2.0%
New Jersey Transportation
Trust Fund Auth.
5.00%, 6/15/99 3,500 3,576
6.00%, 6/15/00 5,000 5,268
Total New Jersey (Cost $8,758) 8,844
NEW MEXICO 0.3%
Gallup, PCR, Plains Electric
Generation and Transmission Coop.
5.50%, 8/15/98 (MBIA Insured) $ 1,390 $1,422
Total New Mexico (Cost $1,389) 1,422
NEW YORK 12.9%
Dormitory Auth. of the
State of New York
City Univ., 9.25%, 7/1/00 5,180 5,898
State Ed. Fac.
7.20%, 5/15/99 3,000 3,182
7.25%, 5/15/99 3,580 3,801
Metropolitan Transportation Auth.
Service Contract,
Transportation Fac.
7.50%, 7/1/16
(Prerefunded 7/1/00!) 8,480 9,488
7.875%, 7/1/17
(Prerefunded 7/1/00!) 5,750 6,472
Municipal Assistance Corp.
of New York City
5.00%, 7/1/99 6,000 6,130
5.00%, 7/1/03 4,000 4,089
Nassau County, GO
5.125%, 3/1/02 5,000 5,131
6.30%, 11/1/02 (FGIC Insured) 3,295 3,596
6.30%, 11/1/03 (FGIC Insured) 2,800 3,076
New York City, GO, 5.30%, 8/1/03 4,785 4,818
Port Auth. of New York and
New Jersey, 4.90%, 9/1/97 * 1,500 1,502
Total New York (Cost $56,079) 57,183
NORTH CAROLINA 0.3%
North Carolina Eastern
Municipal Power Agency
5.00%, 1/1/98 (MBIA Insured) 1,500 1,514
Total North Carolina (Cost $1,505) 1,514
OHIO 1.8%
Cuyahoga County
Univ. Hosp.
6.00%, 1/15/01 (MBIA Insured) 2,120 2,245
6.00%, 1/15/02 (MBIA Insured) 2,340 2,494
Ohio Building Auth.,
Adult Correctional Fac.
5.75%, 4/1/01 (AMBAC Insured) $ 2,920 $3,066
Total Ohio (Cost $7,705) 7,805
PENNSYLVANIA 6.0%
Coatesville Area School Dist.
6.70%, 1/15/12
(Prerefunded 3/1/01!) 5,200 5,638
New Castle Area Hosp. Auth.,
St. Frances Hosp.
Zero Coupon, 11/15/97 2,535 2,465
Pennsylvania Intergovernmental
Cooperative Auth.
Philadelphia Funding Program
5.75%, 6/15/99 (FGIC Insured) 5,000 5,185
5.75%, 6/15/00 (FGIC Insured) 5,000 5,222
6.00%, 6/15/02 (FGIC Insured) 5,000 5,341
Pittsburgh, Water and Sewer
6.50%, 9/1/14 (FGIC Insured)
(Prerefunded 9/1/01!) 2,500 2,756
Total Pennsylvania (Cost $26,148) 26,607
RHODE ISLAND 0.5%
Rhode Island Student Loan,
6.20%, 12/1/98 2,000 2,051
Total Rhode Island (Cost $2,000) 2,051
SOUTH CAROLINA 3.1%
Orangeburg County,
South Carolina Electric and Gas
VRDN (Currently 3.60%) * 400 400
South Carolina, Capital Improvement,
GO, 5.70%, 2/1/98 2,400 2,445
South Carolina Public Service Auth.
Santee Cooper
6.25%, 1/1/00 (AMBAC Insured) 3,000 3,158
6.25%, 1/1/01 (AMBAC Insured) 2,000 2,129
6.50%, 7/1/24 (AMBAC Insured)
(Prerefunded 7/1/02!) 5,000 5,564
Total South Carolina (Cost $13,094) 13,696
TENNESSEE 1.3%
Shelby County, GO, 5.25%, 4/1/99 $ 5,500 $5,645
Total Tennessee (Cost $5,570) 5,645
TEXAS 5.1%
Anderson County,
Coffield State Prison
6.50%, 3/15/98 (AMBAC Insured) 2,000 2,056
Dallas-Fort Worth Regional Airport,
5.50%, 11/1/98 2,000 2,051
Fort Worth, GO, 6.00%, 3/1/01 5,000 5,302
Goose Creek Independent
School Dist., GO
Zero Coupon, 2/15/98 1,200 1,156
Zero Coupon, 2/15/99 1,200 1,105
Gulf Coast IDA, Amoco Oil,
VRDN (Currently 3.55%) * 1,200 1,200
Gulf Coast Waste Disposal Auth.,
PCR, Amoco Oil
VRDN (Currently 3.55%) * 1,600 1,600
Harris County Health Fac. Dev. Corp.
Methodist Hosp., VRDN
(Currently 3.45%) 1,000 1,000
St. Luke's Episcopal Hosp.,
6.20%, 2/15/98 1,420 1,452
Hays Consolidated
Independent School Dist., GO
Zero Coupon, 2/15/98 1,050 1,012
Lubbock, Waterworks, GO,
8.75%, 2/15/98 510 534
Port of Houston Auth.,
Zero Coupon, 10/1/97 2,660 2,603
Texas Housing Agency
6.15%, 3/1/97 1,000 1,000
6.25%, 3/1/98 310 315
6.25%, 9/1/98 260 266
6.80%, 7/1/97 120 121
Total Texas (Cost $22,439) 22,773
UTAH 0.1%
Utah Housing Fin. Agency,
6.00%, 1/1/99 275 281
Total Utah (Cost $275) 281
VIRGINIA 2.3%
Chesapeake, Public Improvement,
GO, 6.75%, 7/1/98 1,000 1,039
Hampton Roads Medical College,
6.30%, 11/15/02 $ 1,000 $ 1,065
Roanoke IDA, Roanoke Memorial Hosp.,
Carilion Health System
VRDN (Currently 3.25%) 2,000 2,000
Virginia, Higher Ed.
Institution, GO
6.40%, 6/1/04
(Prerefunded 6/1/99!) 1,170 1,251
Virginia HDA, 5.90%, 1/1/00 * 1,865 1,914
Virginia Polytechnic Institute
and State Univ.
5.00%, 6/1/99 1,000 1,021
5.375%, 6/1/00 1,000 1,034
5.375%, 6/1/01 750 778
Total Virginia (Cost $10,005) 10,102
WASHINGTON 2.2%
Washington HFA, Virginia Mason
Medical Center
7.20%, 7/1/98 (MBIA Insured) 1,000 1,032
Washington Public Power Supply
7.25%, 7/1/00 2,000 2,164
7.625%, 7/1/10
(Prerefunded 1/1/01!) 4,000 4,525
6.30%, 7/1/01 (FSA Insured) 2,000 2,136
Total Washington (Cost $9,751) 9,857
WISCONSIN 1.2%
Wisconsin Public Power Systems,
Power Supply
7.50%, 7/1/10 (AMBAC Insured)
(Prerefunded 7/1/00!) 4,800 5,361
Total Wisconsin (Cost $5,292) 5,361
WYOMING 1.2%
Lincoln County, PCR,
Exxon, VRDN (Currently 3.50%) * 4,000 4,000
Sublette County, PCR, Exxon,
VRDN (Currently 3.50%) * 1,200 1,200
Total Wyoming (Cost $5,200) 5,200
Total Investments in Securities
99.8% of Net Assets (Cost $436,212) $442,780
Other Assets Less Liabilities $ 851
NET ASSETS $443,631
_________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 17
Accumulated net realized gain/loss -
net of distributions 1,170
Net unrealized gain (loss) 6,568
Paid-in-capital applicable to 82,882,837
shares of $0.01 par value capital stock
outstanding; 1,000,000,000 shares authorized 435,876
NET ASSETS $443,631
_________
NET ASSET VALUE PER SHARE $ 5.35
_________
* Interest subject to alternative minimum tax
** When issued security
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BAN Bond Anticipation Note
COP Certificates of Participation
DOT Department of Transportation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
GO General Obligation
HDA Housing Development Authority
HEFA Health & Educational Facility Authority
HFA Health Facility Authority
HFFA Health Facility Financing Authority
HHEFA Health & Higher Educational Facility Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
PFA Public Facility Authority
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Tax-Free Short-Intermediate Fund
Statement of Operations
In thousands
Year
Ended
2/28/97
Investment Income
Interest income $21,334
Expenses
Investment management 1,884
Shareholder servicing 302
Custody and accounting 164
Registration 55
Legal and audit 13
Prospectus and shareholder reports 13
Directors 8
Miscellaneous 14
Total expenses 2,453
Net investment income 18,881
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 2,196
Futures 277
Net realized gain (loss) 2,473
Change in net unrealized gain
or loss on securities (3,995)
Net realized and unrealized gain (loss) (1,522)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $17,359
_________
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Tax-Free Short-Intermediate Fund
Statement of Changes in Net Assets
In thousands
Year
Ended
2/28/97 2/29/96
Increase (Decrease) in Net Assets
Operations
Net investment income $18,881 $19,759
Net realized gain (loss) 2,473 4,008
Change in net unrealized gain or loss (3,995 )6,603
Increase (decrease) in net assets
from operations 17,359 30,370
Distributions to shareholders
Net investment income (18,881) (19,759)
Capital share transactions*
Shares sold 82,162 85,130
Distributions reinvested 15,046 15,624
Shares redeemed (97,283) (120,221)
Increase (decrease) in net
assets from capital
share transactions (75) (19,467)
Net Assets
Increase (decrease) during period (1,597) (8,856)
Beginning of period 445,228 454,084
End of period $443,631 $445,228
________ ________
*Share information
Shares sold 15,440 15,992
Distributions reinvested 2,826 2,933
Shares redeemed (18,288) (22,579)
Increase (decrease) in
shares outstanding (22) (3,654)
The accompanying notes are an integral part of these financial
statements.
T. Rowe Price Tax-Free Short-Intermediate Fund
February 28, 1997
Notes to Financial Statements
Note 1 - Significant Accounting Policies
T. Rowe Price Tax-Free Short-Intermediate 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 December 23, 1983.
Valuation Debt securities are generally traded in the
over-the-counter market. Investments in securities are stated
at fair value as furnished by dealers who make markets in such
securities or by an independent pricing service, which
considers yield or price of bonds of comparable quality,
coupon, maturity, and type, as well as prices quoted by
dealers who make markets in such securities.
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 original issue discounts
on municipal securities are amortized for both financial
reporting and tax purposes. Market discounts are recognized
upon disposition of the security as gain or loss for financial
reporting purposes and as ordinary income for 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. 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.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities, other than
short-term securities, aggregated $357,078,000 and
$355,666,000, respectively, for the year ended February 28,
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 income. Capital loss
carryforwards utilized in fiscal 1997 amounted to $1,106,000.
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 February 28, 1997. The results of operations
and net assets were not affected by the reclassifications.
___________________________________________________________
___________
Undistributed net investment income $ 4,000
Undistributed net realized gain (28,000)
Paid-in-capital 24,000
At February 28, 1997, the aggregate cost of investments for
federal income tax and financial reporting purposes was
$436,212,000, and net unrealized gain aggregated $6,568,000,
of which $6,589,000 related to appreciated investments and
$21,000 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 $145,000 was
payable at February 28, 1997. The fee is computed daily and
paid monthly and consists of an individual fund fee equal to
0.10% 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 0.305% for assets in excess of
$50 billion. At February 28, 1997, and for the year 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.
In addition, the fund has entered into agreements with the
manager and a wholly owned subsidiary 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. The fund
incurred expenses pursuant to these related party agreements
totaling approximately $314,000 for the year ended February
28, 1997, of which $30,000 was payable at period-end.
During fiscal year 1996, Coopers & Lybrand L.L.P. succeeded
Price Waterhouse LLP as independent accountants for the
Tax-Free Short-Intermediate Fund, a decision that was approved
by the fund's Board of Directors. During the two fiscal years
preceding the change, the fund received unqualified opinions
and had no disagreements with Price Waterhouse LLP or
reportable events that caused the change.
T. Rowe Price Tax-Free Short-Intermediate Fund
Report of Independent Accountants
To the Shareholders and Board of Directors of T. Rowe Price
Tax-Free Short-Intermediate Fund, Inc.
We have audited the accompanying statement of net assets of
T.Rowe Price Tax-Free Short-Intermediate Fund, Inc., as of
February 28, 1997, and the related statement of operations for
the year then ended, statement of changes in net assets and
financial highlights for each of the two years in the period
then ended. These financial statements and financial
highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The
financial highlights for each of the preceding years presented
were audited by other auditors, whose report, dated March 17,
1995, expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
investments owned as of February 28, 1997, by correspondence
with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of T. Rowe Price Tax-Free
Short-Intermediate Fund, Inc., as of February 28, 1997, the
results of its operations, the changes in its net assets, and
financial highlights for each of the respective periods stated
in the first paragraph, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
March 19, 1997
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.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your
distributions.
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and
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T. Rowe Price Mutual Funds
STOCK FUNDS
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Balanced
Blue Chip Growth
Capital Appreciation
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BOND FUNDS
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Corporate Income
GNMA
High Yield
New Income
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Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
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Tax-Free High Yield
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Tax-Free Short-Intermediate
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Virginia Tax-Free Bond
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MONEY MARKET FUNDS
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Tax-Exempt Money
BLENDED ASSET FUNDS
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T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
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International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
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Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
*Closed to new investors.
**Effective May 1, 1997, the fund's name will change to
Small-Cap Stock.
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.
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
625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
http://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 Tax-Free Short-Intermediate Fund(registered
trademark).
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
T. Rowe Price Investment Services, Inc., Distributor.
RPRTTFS 2/28/97
THE SHAREHOLDER LETTER AND REPORT FOR THE COMBINED TAX-FREE
FUNDS IS ATTACHED HERE BY ACCESSING THE FOLLOWING:
Annual Report
Tax-Free
Funds
February 28, 1997
T. Rowe Price
Report Highlights
o Interest rates ended the fiscal year slightly higher than a year ago,
resulting in moderate returns for municipal bond investors.
o Municipal bonds outperformed Treasuries during most of the year.
o All five funds generated greater returns than their peer group averages
during the year ended February 28.
o Your funds relied to a great extent on credit research and sector
selection to enhance returns. Tax-exempt high-yield securities were
particularly good performers.
o With the economy showing ongoing strength and the Federal Reserve
indicating a bias toward tighter monetary policy, our outlook is
somewhat cautious for the coming months.
Fellow Shareholders
The municipal bond market and your funds generated moderate returns during
the fiscal year ended February 28, 1997. Interest rates fluctuated during the
year and ended slightly higher than where they started at the end of last
February. The U.S. economy was characterized by modest wage inflation with
low unemployment, prompting the Federal Reserve to leave monetary policy
unchanged since January 1996.
MARKET ENVIRONMENT
Much of the movement in interest rates reflected the market's anticipation
of action or inaction by the Federal Reserve. The fiscal year began with
interest rates rising due to signs of both stronger growth and the
realization that balanced budget legislation would not be passed in 1996. As
market expectations for a tightening in monetary policy grew throughout the
first half, rates continued to increase. The long-term Treasury bond yield
remained in a trading range between 6.75% and 7.20% during the third quarter.
Intermediate and long-term rates then reversed course and fell through
November as it became evident that the economy was slowing in the third
quarter and the Federal Reserve was not going to raise rates. Another uptick
in rates took place late in 1996 as investors once again perceived strength
in the economy and anticipated possible tightening by the Federal Reserve.
Chart 1 - Municipal Bond and Yield Notes line chart
In the municipal market, rates came full circle over the year, rising about
45 basis points (100 basis points equal one percent) during the first six
months before settling slightly above year-ago levels. Long-term high-grade
general obligation bonds yielded 5.50% on February 28, 1997, versus 5.75% on
August 31, 1996, and 5.45% a year ago. Five-year high-grade bonds were 20
basis points higher in yield than in February 1996. One-year note rates
traded within a 70-basis-point range during the year, ending at 3.70%
compared with 3.25% a year ago.
Municipals provided higher returns than long-term Treasuries throughout most
of the fiscal year, as concerns regarding tax reform and flat tax legislation
diminished. As a result, long-term municipal yields were 81% of the yield on
comparable Treasuries on February 28, a level that benefits investors in
brackets above 19%, whereas a year ago with the ratio at 87%, investors in
brackets upwards of 13% benefited from municipals.
Lower-quality bonds performed well as the spread between their yields and
those of higher-rated bonds narrowed, resulting in good price appreciation.
The narrowing yield spread between different quality bonds reflected a solid
economy with no immediate concern about recession and also the growing number
of insured bonds in the market, which shrunk the supply of higher-yielding
bonds.
New issuance in both the long- and short-term markets increased in 1996 for
the first time since 1993, reflecting healthier state and local economies,
a backlog of borrowing needs, and less resistance from the voters to new
bond-financed projects. The increased supply was well received by investors
after two years of declining issuance.
TAX-EXEMPT MONEY FUND
Our longer maturity strategy resulted in attractive returns, helping your
fund outperform its peer group during both the 6- and 12-month periods ended
February 28, 1997.
Chart 2- Performance Comparison
Periods Ended 2/28/976 Months 12 Months
____________________________________________________________
Tax-Exempt Money Fund1.51% 3.05%
Lipper Tax-Exempt Money
Market Funds Average1.45 2.91
Despite last year's stable monetary policy, the yields of 6- and 12-month
municipal notes managed to vacillate in a range of 70 basis points. At the
end of the fiscal year, yields of 1- to 30-day maturities were little changed
from a year ago, but yields on 60-day to 1-year maturities were 20 to 50
basis points higher.
Your fund ended the fiscal year with a weighted average maturity of 58 days,
shorter than the 65 days of a year earlier and 66 days at the end of August.
By comparison, the weighted average maturity for our peer group at the end
of February was only 46 days. Lending support to our modestly longer maturity
posture was the robust demand generated by cash inflows to tax-exempt money
funds, which expanded to a record $147 billion. An additional $12 billion in
new cash inflows more than offset a $5 billion increase in the supply of new
issues.
We emphasized longer maturities throughout the year, since we felt reasonably
confident that the Federal Reserve would wait for more concrete evidence of
rising inflation before raising the federal funds rate. We took advantage of
the upwardly sloping yield curve by concentrating more on 6- and 12-month
municipal notes, which provided an average of 40 basis points more yield than
shorter maturities. We also reduced the percentage of variable rate
securities in the portfolio. We will carefully consider recent remarks by
Chairman Greenspan about a possible preemptive move against inflation (see
the Outlook section) as we set our maturity strategy in coming months.
TAX-FREE SHORT-INTERMEDIATE FUND
Duration management and credit research helped your fund outperform the
average for similar funds during both the 6- and 12- month periods ended
February 28.
Chart 3- Performance Comparison
Periods Ended 2/28/97 6 Months 12 Months
_____________________________________________________
Tax-Free Short-
Intermediate Fund 3.13% 4.02%
Lipper Short-Intermediate
Debt Funds Average 3.07 3.72
The threat of higher short-term interest rates early in the year prompted us
to keep duration (a measure of a fund's sensitivity to changes in interest
rates) around 2.6 years, near the short end of our usual range. However, as
we moved into the third quarter, signs of slower growth began to emerge,
causing yields on five-year maturities to fall from 4.65% in early September
to 4.15% in early December. We extended the fund's duration to about 3.0
years, gaining some but not all of the price appreciation in the rally.
Recently, we reduced duration to 2.8 years because of the decreasing
likelihood of further increases in bond prices.
While our timing on duration was modestly successful, we were able to enhance
performance with credit research and sector selection. The prolonged strength
of the economy improved the financial condition of many municipal issuers.
Last year, Standard & Poor's upgraded credit ratings on more than three times
as many issues as it downgraded. As a result, lower-rated securities
outperformed higher-rated AAA issues, narrowing the yield differential
between them. We had positioned the fund to take advantage of this phenomenon
in both 1995 and 1996 by increasing fund exposure to lower-rated states such
as Massachusetts, Louisiana, New York, and Pennsylvania. We also purchased
financially sound hospital revenue bonds, which we think will benefit from
demographic changes.
Two sectors we continued to underweight are municipally owned electric
utilities and housing bonds. In many cases, municipal utilities sell
high-cost nuclear power, and deregulation of the industry should allow
low-cost providers to compete more effectively. As a result, many local
utilities were downgraded last year by Moody's and Standard & Poor's.
We avoided short-term housing bonds primarily because of their structure, not
because of creditworthiness. Housing bonds are issued at par, while we prefer
higher-yielding bonds at premium prices. If interest rates should rise, the
prices of short-term par bonds tend to fall faster than bonds trading at a
premium with the same duration.
TAX-FREE INSURED INTERMEDIATE BOND FUND
A combination of higher yield, credit management, and a lower fund expense
ratio enabled your fund to match the average return of similar funds over the
six-month period and slightly surpass it over 12 months.
Chart 4- Performance Comparison
Periods Ended 2/28/97 6 Months 12 Months
_____________________________________________________
Tax-Free Insured
Intermediate Bond Fund 4.00% 4.19%
Lipper Intermediate
Municipal Debt Funds Average 3.98 4.14
Interest rates over the past 12 months have been confined to a relatively
tighter trading range than in recent years. Yields on 10-year AAA-rated
securities ranged between 4.65% and 5.30% since early March, a 65-basis-point
range compared with 100 basis points a year ago and 155 two years earlier.
The recent tighter range limited returns that could be reaped from duration
management, which generated mixed results over the 6- and 12-month periods.
In the first half, our short posture contributed positively to performance
as interest rates moved higher. We gave back some of these gains in the
second half, as rates turned lower in September while we remained slightly
cautious.
Lower volatility rendered credit research and sector selection increasingly
important in our effort to outperform our peer group. We focused on
undervalued securities within the insured market. Even though two different
issues may carry insurance from the same company, the marketplace sometimes
values them differently. For instance, Denver International Airport is rated
BBB by Moody's and Standard & Poor's. While insurance earns the bonds a AAA
rating from both agencies, the marketplace usually values bonds lower,
according to their underlying rating. Early in the year we increased the
fund's exposure to the Denver Airport bonds because we believed they
represented good value versus other insured bonds.
TAX-FREE INCOME FUND
Overall, it was a year of modest returns for long-term bonds. In this
environment, your fund matched the average performance of its peer group
during the past six months and exceeded it over the year.
Chart 5- Performance Comparison
Periods Ended 2/28/97 6 Months 12 Months
_____________________________________________________
Tax-Free Income Fund 4.80% 4.81%
Lipper General Municipal
Debt Funds Average 4.79 4.51
During much of the year, we kept the fund's duration within a narrow range.
We felt that interest rates were likely to fluctuate more modestly than
during the two prior years, providing few opportunities for aggressive shifts
in strategy. As a result, the fund's duration remained close to 7.5 years for
most of 1996. We increased it slightly in the third quarter but then returned
to a more conservative position near the end of the fiscal year.
With municipal yields flirting with their lows of the past two decades, we
felt there was little chance of a strong rise in bond prices and further rate
declines. Therefore, we focused more on enhancing the portfolio's yield where
we could. This strategy included holding on to older, higher-yielding bonds
and identifying suitable high-yield securities, which performed well in 1996.
Going forward, the opportunity for further price appreciation from
lower-quality bonds seems limited, leading us to be more selective in
considering them.
Bonds insured by third parties began to look more attractive as the amount
of insured new issues rose during the year. Twelve months ago, the yields of
insured municipal bonds were only 10 to 15 basis points higher than those of
high-quality general obligation bonds; by year-end this spread was closer to
25 basis points, making the yields on insured bonds relatively appealing.
We will continue to focus on income enhancement, maintain duration closer to
the low end of our neutral range, and wait for opportunities to extend
maturities. The municipal market's stronger performance relative to taxable
securities during the first two months of the year, combined with a growing
new issues calendar for March, suggests that we will be able to invest at
higher yield levels in coming months.
TAX-FREE HIGH YIELD FUND
The Tax-Free High Yield Fund outperformed its peer group over both the fiscal
year and the most recent six-month period. It has exceeded the average
performance of similar funds for the past nine fiscal years.
Chart 6- Performance Comparison
Periods Ended 2/28/97 6 Months 12 Months
_____________________________________________________
Tax-Free High Yield Fund 5.37% 6.22%
Lipper High Yield Municipal
Debt Funds Average 4.98 5.27
Opportunistic credit selection dominated fund performance last year,
enhancing returns in three important ways. First, several individual holdings
boosted fund returns by outperforming the market because of improved credit
standing and refinancings. Key issues in this category included
investor-owned utility and hospital revenue bonds. Second, the selective sale
of securities and avoidance of certain sectors, such as specialized solid
waste and paper recycling bonds, meant we were able to avoid significant
credit problems. Finally, the fund was a beneficiary of yet another year of
narrowing yield spreads, with lower-quality bonds significantly outperforming
many higher-quality issues.
Your fund's concentration in below-investment-grade holdings fell steadily
last year, from 28% to 23% of net assets. This move reflected a combination
of factors, including ratings upgrades, refinancings, and a continuing
selective approach when considering new issues. However, positions in the BBB
category rose slightly to 34% of net assets. Absent a recession or a large
market sell-off, we expect yield differences between securities of different
credit ratings to remain tight. Another factor contributing to the narrow
yield spreads was the increasing market share of bond insurance, shrinking
the supply of uninsured lower-rated bonds. As a result, we are being
selective in our purchases of lower-quality bonds and do not expect a
material change in your fund's average credit quality, which was BBB+ at the
end of February.
Chart 7- Quality Diversification pie
We managed duration and the weighted average maturity within a narrow range,
with duration remaining between 7.0 and 7.4 years. Your fund was slightly
defensive versus its peer group early in the year, which was a plus in a down
market. We lengthened maturities modestly during much of the second half,
maintaining a weighted average maturity of 19 years and a cash level of about
3%. At the end of February, your fund could be characterized as being fairly
neutral versus its peer group.
OUTLOOK
The economy is in its sixth year of expansion, and while it has exhibited few
signs of inflationary pressure, the Federal Reserve remains on alert. Fed
chairman Alan Greenspan stated in recent testimony to the Senate Banking
Committee that the Fed cannot rule out a preemptive tightening in monetary
policy before signs of actual higher inflation become evident.
We expect economic growth and inflation to remain moderate throughout the
rest of 1997, with no evidence of recession visible to date. Consumer and
business sentiment remain high, inventories are not excessive, and
availability of credit is ample. The Federal Reserve, as indicated, could
push the fed funds rate higher to keep prices in check, but we believe any
increase will be small since short-term rates are well above the recent trend
rate of inflation. This was not the case in 1994, when the Fed was forced to
move aggressively.
The supply of municipal bonds should increase over the near term, possibly
exerting some downward pressure on bond prices if demand does not increase
commensurately. Given our expectation that interest rates will move in a
relatively narrow channel, we would regard higher rates as an opportunity to
provide additional yield in the funds. Overall, however, we do not expect to
see a significant move in bond prices in the months ahead. As in the past
year, the returns from municipal securities should come primarily from
income.
Respectfully submitted,
Mary J. Miller
Director
Municipal Bond Department
March 21, 1997
T. Rowe Price Tax-Free Funds
Portfolio Highlights
KEY STATISTICS
8/31/96 2/28/97
Tax-Exempt Money Fund
_____________________________________________________
Price Per Share $ 1.00 $ 1.00
Dividends Per Share!
For 6 months 0.015 0.015
For 12 months 0.031 0.030
Dividend Yield
(7-Day Compound) * 3.06% 3.02%
Weighted Average
Maturity (days) 66 58
Weighted Average Quality ** First Tier First Tier
Tax-Free Short-Intermediate Fund
_____________________________________________________
Price Per Share $ 5.30 $ 5.35
Dividends Per Share!
For 6 months 0.12 0.11
For 12 months 0.23 0.23
Dividend Yield *
For 6 months 4.32% 4.37%
For 12 months 4.40 4.39
Weighted Average Maturity
(years) 3.2 3.6
Weighted Average Effective
Duration (years) 2.6 2.8
Weighted Average Quality *** AA AA
(continued on next page)
T. Rowe Price Tax-Free Funds
Portfolio Highlights
Key statistics
8/31/96 2/28/97
Tax-Free Insured Intermediate Bond Fund
_____________________________________________________
Price Per Share $ 10.62$ 10.80
Dividends Per Share!
For 6 months 0.24 0.24
For 12 months 0.48 0.48
Dividend Yield *
For 6 months 4.44% 4.58%
For 12 months 4.51 4.56
Weighted Average
Maturity (years) 7.7 7.4
Weighted Average Effective
Duration (years) 5.6 5.3
Weighted Average Quality *** AA AA
Tax-Free Income Fund
Price Per Share $ 9.40 $ 9.59
Dividends Per Share!
For 6 months 0.26 0.26
For 12 months 0.52 0.52
Dividend Yield *
For 6 months 5.44% 5.48%
For 12 months 5.52 5.54
Weighted Average
Maturity (years) 17.0 17.0
Weighted Average Effective
Duration (years) 7.5 7.7
Weighted Average Quality *** AA- AA-
Key statistics
8/31/962/28/97
Tax-Free High Yield Fund
_____________________________________________________
Price Per Share $ 11.84 $ 12.12
Dividends Per Share!
For 6 months 0.35 0.35
For 12 months 0.71 0.70
Dividend Yield *
For 6 months 5.92% 5.94%
For 12 months 6.05 6.02
Weighted Average
Maturity (years) 19.4 19.1
Weighted Average Effective
Duration (years) 7.1 7.2
Weighted Average Quality *** BBB+ BBB+
! Taxability of dividends: 100% of the dividends paid for the 12 months
ended 2/28/97 were exempt from federal income tax.
* Dividends earned and reinvested for the periods indicated are
annualized and divided by the average daily net asset values per share
for the same period.
** All securities purchased in the money fund are rated in the two highest
categories (tiers) as established by national rating agencies or, if
unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
T. Rowe Price Tax-Free Funds
Performance Comparison
These charts show the value of a hypothetical $10,000 investment in each 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.
Chart 8 - Tax Exempt Money Fund line chart
Chart 9 - Tax-Free Short-Intermediate Fund line chart
Chart 10 - Tax-Free Insured Intermediate Bond Fund line chart
Chart 11 - Tax-Free Income Fund line chart
Chart 12 - Tax-Free High Yield Fund line chart
Average Annual Compound Total Return
This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Periods Ended Since Incep-
2/28/97 1 5 10 Incep- tion
Year Years Years tion Date
_________________________________________________________
Tax-Exempt Money 3.05% 2.70% 3.77% - 4/8/81
Tax-Free Short-
Intermediate 4.02 4.94 5.13 - 12/23/83
Tax-Free Insured
Intermediate Bond 4.19 - - 6.76% 11/30/92
Tax-Free Income 4.81 7.38 6.40 - 10/26/76
Tax-Free High Yield 6.22 7.82 7.60 - 3/1/85
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
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
625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
http://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 Tax-Free Funds.
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
T. Rowe Price Investment Services, Inc., Distributor.
RPRTTFF 2/28/97
Chart 1- yield line chart showing 30-year AAA GO, 5-year AAA GO, and 1-year
MIG1 note from 2/29/96 through 2/28/97
Chart 7 - quality diversification pie chart showing AAA 4%, AA 26%, A 13%,
BBB 34%, and BB and Below 23% on 2/28/97
Chart 8 - Tax Exempt Money Fund line chart showing the cumulative growth of
$10,000 invested in the TEM Fund over the past 10 years (or from inception
for funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.
Chart 9 - Tax-Free Short-Intermediate Fund line chart showing the cumulative
growth of $10,000 invested in the TEM Fund over the past 10 years (or from
inception for funds lacking 10-year histories) compared with $10,000 invested
in a broad-based index or average over the same period.
Chart 10 - Tax-Free Insured Intermediate Bond Fund line chart showing the
cumulative growth of $10,000 invested in the TEM Fund over the past 10 years
(or from inception for funds lacking 10-year histories) compared with $10,000
invested in a broad-based index or average over the same period.
Chart 11 - Tax-Free Income Fund line chart showing the cumulative growth of
$10,000 invested in the TEM Fund over the past 10 years (or from inception
for funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.
Chart 12 - Tax-Free High Yield Fund line chart showing the cumulative growth
of $10,000 invested in the TEM Fund over the past 10 years (or from inception
for funds lacking 10-year histories) compared with $10,000 invested in a
broad-based index or average over the same period.
