PAGE 1
o Hypothetical example: Assume you
invest $1,000, the fund returns 5%
annually, expense ratios remain as
previously listed, and you close your
account at the end of the time periods
shown. Your expenses would be:
_________________________
The table at right is
just an example; actual
expenses can be higher or
lower than those shown. __________________________________________
1 3 5 10
Year Years Years Years
__________________________________________
$11 $35 $61 $135
________________________________________
Table 2
Financial Highlights
The following table provides information
about the fund's financial history. It is
based on a single share outstanding
throughout each fiscal year. The table is
part of the fund's financial statements
which are included in the fund's annual
report and incorporated by reference into
the Statement of Additional Information.
This document is available to shareholders
upon request. The financial highlights for
the years ended December 31, 1992 and 1993,
presented below, is included in financial
statements audited by the Fund's
independent accountants, Coopers & Lybrand
L.L.P., whose reports thereon were
unqualified. The information presented
below for the years 1985-1991 has been
examined by Sanville & Company, independent
accountants, whose respective reports
thereon were unqualified.
PAGE 2
Investment Activities Distributions
Net Real-
ized and
Net Unreal- Total
Asset ized Gain from
Value, Net (Loss) Invest- Net Net
Begin- Invest- on ment Invest-Real- Total
Year Ended, ning of ment Invest- Activi- ment ized Distri-
December 31 Period Income ments ties Income Gain butions
_________________________________________________________________
1985 $14.93 $0.14 $4.895 $5.035$(0.15)$(1.135)$(1.285)
1986 18.68 0.20 0.79 0.99 (0.06) (2.57) (2.63)
1987 17.04 0.15 (2.17) (2.02) (0.32) (1.51) (1.83)
1988 13.19 0.11 3.47 3.58 (0.13) (2.50)a (2.63)
1989 14.14 0.09 2.61 2.70 (0.13) (0.48) (0.61)
1990 16.23 0.11 (3.43) (3.32) (0.09) (0.10) (0.19)
1991 12.72 0.07 4.84 4.91 (0.09) (0.68) (0.77)
1992 16.86 0.02 2.20 2.22 (0.07) (4.64) (4.71)
1993 14.37 -- 2.60 2.60 -- (1.58) (1.58)
1994 15.39 0.04 (0.04) -- (0.03) (1.56) (1.59)
End of Period
Ratio
of
Total Ratio Net
Return of Invest-
Net (Includes Expenses ment Port-
Asset Rein- to Income folio
Value, vested Net Average to Aver- Turn-
Year Ended, End of Divi- Assets ($ Net age Net over
December 31 Period dends) Thousands) Assets Assets Rate
_________________________________________________________________
1985 $18.68 35.4% 147,535 1.25% 0.75% 31.2%
1986 17.04 4.7% 247,676 0.85% 0.95% 30.7%
1987 13.19 (12.5)% 212,319 1.00% 0.80% 49.0%
1988 14.14 (27.2)% 292,104 1.55% 0.69% 27.2%
1989 16.23 19.1% 315,939 1.45% 0.63% 33.1%
1990 12.72 (20.5)% 215,299 1.47% 0.73% 34.8%
1991 16.86 38.6% 266,584 1.34% 0.48% 31.2%
1992b 14.37 13.9% 186,838 1.32% 0.03% 30.7%
1993 15.39 18.4% 204,609 1.20% (0.01)% 40.8%
1994 13.80 0.1% 196,726 1.11% 0.24% 41.9%
_________________________________________________________________
a Return of capital distribution.
b T. Rowe Price became the Fund's investment manager on August
31, 1992.
_________________________________________________________________
Table 3
