Annual Report
High Yield
Fund -
Advisor Class
May 31, 2000
T. Rowe Price
T. Rowe Price High Yield Fund
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Financial Highlights For a share outstanding throughout each period
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High Yield Advisor shares
3/31/00
Through
5/31/00
NET ASSET VALUE
Beginning of period $ 7.70
Investment activities
Net investment income (loss) 0.12
Net realized and
unrealized gain (loss) (0.19)
Total from
investment activities (0.07)
Distributions
Net investment income (0.13)
NET ASSET VALUE
End of period $ 7.50
Ratios/Supplemental Data
Total return(diamond) (0.90)%
Ratio of total expenses
to average net assets 0.68%!
Ratio of net investment
income (loss) to average
net assets 10.01%!
Portfolio turnover rate 75.9%!
Net assets, end of period
(in thousands) $ 10
(diamond) Total return reflects the rate that an investor would have
earned on an investment in the fund during each period, assuming
reinvestment of all distributions and payment of no redemption or
account fees.
! Annualized
The accompanying notes are an integral part of these financial statements.
T. Rowe Price High Yield Fund
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May 31, 2000
Statement of Net Assets Par/Shares Value
--------------------------------------------------------------------------------
In Thousands
CORPORATE BONDS AND NOTES 80.8%
Aerospace and Defense 1.7%
Anteon, Sr. Sub. Notes, 12.00%, 5/15/09 $ 4,300 $ 3,913
BE Aerospace, Sr. Sub. Notes, 8.00%, 3/1/08 4,875 3,857
Communications & Power, Sr. Sub. Notes,
12.00%, 8/1/05 9,550 7,163
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 6,750 5,400
L3 Communications, Sr. Sub. Notes,
10.375%, 5/1/07 !@ 4,780 4,792
25,125
Automobiles and Related 1.6%
Advance Stores, Sr. Sub. Notes, 10.25%, 4/15/08 4,100 3,280
Aftermarket Technology, Sr. Sub. Notes, 12.00%, 8/1/04 3,810 3,838
Hayes Lemmerz International, Sr. Sub. Notes,
8.25%, 12/15/08 4,300 3,612
Hayes Wheels International, Sr. Sub. Notes,
9.125%, 7/15/07 2,725 2,439
Lear Sr. Notes
7.96%, 5/15/05 1,725 1,594
8.11%, 5/15/09 4,050 3,628
MSX International, Sr. Sub. Notes, 11.375%, 1/15/08 6,550 6,157
24,548
Broadcasting 3.7%
Acme Television, Sr. Disc. Notes, Zero Coupon,
9/30/04 6,100 5,673
Benedek Communications, Sr. Sub. Disc. Notes
Zero Coupon, 5/15/06 4,750 4,037
Capstar Broadcasting, Sub. Deb. Exch., 12.00%, 7/1/09 10,743 12,300
Chancellor Media
Sr. Notes, 8.00%, 11/1/08 6,700 6,700
Sr. Sub. Notes
8.125%, 12/15/07 1,750 1,750
8.75%, 6/15/07 2,850 2,850
9.00%, 10/1/08 2,950 2,998
Paxson Communications, Sr. Sub. Notes, 11.625%,
10/1/02 3,000 3,060
Radio Unica, Sr. Notes, STEP, 0% , 8/1/06 12,000 7,380
Sinclair Broadcasting, Sr. Sub. Notes,
10.00%, 9/30/05 4,800 4,440
Spanish Broadcasting System, Sr. Sub. Notes,
9.625%, 11/1/09 6,325 6,088
57,276
Building Products 2.0%
American Builders & Contractors Supply, Sr. Sub. Notes
10.625%, 5/15/07 10,250 8,405
Associated Materials, Sr. Sub. Notes, 9.25%, 3/1/08 $2,650 $2,465
ISG Resources, Sr. Sub. Notes, 10.00%, 4/15/08 15,500 13,795
Nortek, Sr. Sub. Notes, 9.875%, 3/1/04 6,300 5,906
30,571
Building and Real Estate 0.8%
Lennar, Sr. Notes, (144a), 9.95%, 5/1/10 7,775 7,406
LNR Property, Sr. Sub. Notes, 9.375%, 3/15/08 5,000 4,350
11,756
Cable Operators 5.4%
Charter Communications, Sr. Disc. Notes, STEP,
0%, 4/1/11 5,875 3,040
Coaxial Commerce Central Ohio, Sr. Notes,
10.00%, 8/15/06 2,600 2,483
Coaxial LLC, Sr. Notes, STEP, 0%, 8/15/08 7,700 4,909
Frontiervision
Sr. Disc. Notes, STEP, 0%, 9/15/07 10,850 9,168
Sr. Notes, 11.00%, 10/15/06 4,200 4,169
International Cabletel, Sr. Notes, STEP,
0%, 2/1/06 12,000 10,980
Northland Cable Television, Sr. Sub. Notes,
10.25%, 11/15/07 6,000 5,340
NTL Communications
Sr. Notes, STEP
0%, 4/1/08 2,250 1,401
0%, 10/1/08 1,000 642
Telewest PLC
Sr. Disc. Deb., STEP, 0%, 10/1/07 6,300 5,922
Sr. Notes, (144a), 9.875%, 2/1/10 !@ 4,750 4,560
United International Holdings, Sr. Disc. Notes, STEP
0%, 2/15/08 26,200 15,720
United Pan Europe
Sr. Disc. Notes, (144a), Zero Coupon, 2/1/10 19,850 8,436
Sr. Notes, 10.875%, 8/1/09 6,000 4,920
81,690
Consumer Products 2.7%
Ballys Total Fitness, Sr. Sub. Notes,
9.875%, 10/15/07 9,075 8,349
Chattem
Sr. Sub. Notes
8.875%, 4/1/08 4,500 3,825
12.75%, 6/15/04 2,000 2,060
Corning Consumer, Sr. Sub. Notes, 9.625%, 5/1/08 2,650 1,802
Hedstrom Holdings, Sr. Disc. Notes, STEP, 0%, 6/1/09* 2,100 21
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 $5,000 $5,150
Holmes Products
Gtd. Notes, 9.875%, 11/15/07 650 426
Sr. Sub. Notes, 9.875%, 11/15/07 2,150 1,408
Jostens, Units
(Each unit consists of a $1,000 par Sr. Sub.
Note, (144a), 12.75%, 5/1/10 and 1 warrant) !@ 4,325 4,238
Mattress Discounters, Sr. Notes, 12.625%, 7/15/07 4,000 3,600
Sleepmaster LLC, Sr. Sub. Notes, 11.00%, 5/15/09 10,000 9,650
40,529
Container 1.7%
Applied Extrusion Technology, Sr. Notes,
11.50%, 4/1/02 5,575 5,603
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 12,500 11,750
U.S. Can, Sr. Sub. Notes, (Series B),
10.125%, 10/15/06 8,000 8,310
25,663
Electric Utilities 0.6%
Orion Power Holdings, Sr. Notes, (144a),
12.00%, 5/1/10 8,820 8,864
8,864
Electronic Components 1.3%
Amkor Technology, Sr. Notes, 9.25%, 5/1/06 8,900 8,588
Asat Finance LLC, Gtd., Sr. Notes, (144a),
12.50%, 11/1/06 4,775 5,014
Chippac International Limited, Sr. Sub. Notes, (144a),
12.75%, 8/1/09 1,925 2,021
Intersil, Sr. Sub. Notes, 13.25%, 8/15/09 553 625
SCG Holding & Semiconductor, 12.00%, 8/1/09 2,763 2,929
19,177
Energy 7.3%
Bellwether Exploration, Sr. Sub. Notes,
10.875%, 4/1/07 7,900 7,031
Canadian Forest Oil, Sr. Sub. Notes, 8.75%, 9/15/07 7,200 6,660
Comstock Resources, Sr. Notes, 11.25%, 5/1/07 11,525 11,525
Continental Resources, Sr. Sub. Notes, 10.25%, 8/1/08 7,075 6,297
Denbury Management, Sr. Sub. Notes, 9.00%, 3/1/08 6,060 5,303
Energy Corp. of America, Sr. Sub. Notes,
9.50%, 5/15/07 13,375 8,827
EOTT Energy Partners, Sr. Notes, 11.00%, 10/1/09 3,900 3,900
Forest Oil, Sr. Sub. Notes, 10.50%, 1/15/06 4,800 4,752
Frontier Oil, Sr. Notes, 11.75%, 11/15/09 7,000 6,737
Nuevo Energy, Sr. Sub. Notes, 9.50%, 6/1/08 2,500 2,375
PDVSA Finance, 6.80%, 11/15/08 8,700 6,899
Plains Resources, Sr. Sub. Notes, 10.25%, 3/15/06 3,210 3,146
R&B Falcon, 6.75%, 4/15/05 $2,500 $2,200
RBF Finance, 11.00%, 3/15/06 4,800 5,136
Stone Energy, Sr. Sub. Notes, 8.75%, 9/15/07 4,250 4,016
Swift Energy, Sr. Sub. Notes, 10.25%, 8/1/09 6,000 5,955
Universal Compression, Sr. Disc. Notes, STEP,
0%, 2/15/08 15,615 10,150
YPF Sociedad Anonima, 10.00%, 11/2/28 10,000 10,688
111,597
Entertainment and Leisure 1.0%
AMC Entertainment, Sr. Sub. Notes, 9.50%, 2/1/11 3,825 1,759
Cinemark USA, Sr. Sub. Notes, 8.50%, 8/1/08 4,100 2,255
Premier Parks
Sr. Disc. Notes, STEP, 0%, 4/1/08 5,000 3,288
Sr. Notes
9.25%, 4/1/06 3,250 3,047
9.75%, 6/15/07 5,000 4,787
15,136
Financial 0.6%
Bank United, 10.25%, 12/31/26 7,500 6,300
Euronet Services, STEP, 0%, 7/1/06 (EUR) 10,500 3,206
9,506
Food and Tobacco 2.2%
Archibald Candy, Sr. Secured Notes, 10.25%, 7/1/04 4,000 3,240
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 12,000 8,160
Doane Pet Care, Sr. Sub. Notes, 9.75%, 5/15/07 15,353 13,357
International Home Foods, Gtd. Sr. Sub. Notes
10.375%, 11/1/06 6,500 6,386
Luigino's, Sr. Sub. Notes, 10.00%, 2/1/06 3,675 2,867
34,010
Gaming 5.3%
Agrosy Gaming, Sr. Sub. Notes, 10.75%, 6/1/09 6,875 7,047
Capital Gaming International, Sr. Sub. Notes,
12.00%, 5/28/01 !*+@ 2 0
Eldorado Resorts, Sr. Sub. Notes, 10.50%, 8/15/06 6,000 5,820
Hollywood Casino Shreveport, 1st Mortgage Notes, (144a),
13.00%, 8/1/06 8,000 8,480
Hollywood Park
Sr. Sub. Notes
9.25%, 2/15/07 3,925 3,915
9.50%, 8/1/07 2,325 2,314
Horseshoe Gaming Holdings, Sr. Sub. Notes
8.625%, 5/15/09 (Series B) $ 7,125 $ 6,502
Horseshoe Gaming LLC, Sr. Sub. Notes
9.375%, 6/15/07 (Series B) 5,150 4,957
International Game Technology, Sr. Notes,
8.375%, 5/15/09 10,000 9,250
Isle of Capri Casinos, Sr. Sub. Notes,
8.75%, 4/15/09 13,000 11,635
Mohegan Tribal Gaming, Sr. Notes, 8.125%, 1/1/06 5,000 4,656
Players International, Sr. Notes, 10.875%, 4/15/05 3,850 3,994
Station Casinos, Sr. Sub. Notes, 10.125%, 3/15/06 6,100 6,161
Venetian Casino, Sr. Sub. Notes, 14.25%, 11/15/05 6,700 5,996
80,727
Health Care 3.2%
Bio-Rad Labs, Sr. Sub. Notes, (144a), 11.625%, 2/15/07 6,000 6,090
Dade International, Sr. Sub. Notes, 11.125%, 5/1/06 2,125 1,381
Fresenius Medical Care Capital Trust
I 9.00%, 12/1/06 6,500 6,077
II 7.875%, 2/1/08 2,400 2,106
King Pharmaceuticals, Sr. Sub. Notes, 10.75%, 2/15/09 3,300 3,366
Lifepoint Hospitals, Sr. Sub. Notes, 10.75%, 5/15/09 8,000 8,160
Mariner Post Acute Network
Sr. Sub. Notes, 9.50%, 11/1/07* 3,000 60
Sr. Sub. Disc. Notes, Zero Coupon, 11/1/07* 8,100 81
Quest Diagnostics, Gtd. Sr. Sub. Notes,
10.75%, 12/15/06 8,050 8,452
Tenet Healthcare, Sub. Exch. Notes, 6.00%, 12/1/05 5,000 4,101
Triad Hospitals, Sr. Sub. Notes, 11.00%, 5/15/09 8,605 8,799
48,673
Internet Service Providers 2.6%
Cybernet Internet Services, Sr. Notes, 14.00%, 7/1/09 3,350 2,345
Exodus Communications
Sr. Notes
10.75%, 12/15/09 6,150 6,058
11.25%, 7/1/08 3,850 3,888
Globix, Sr. Notes, (144a), 12.50%, 2/1/10 6,000 5,040
PSINet, Sr. Notes, 11.50%, 11/1/08 7,525 6,829
Verio
Sr. Notes
11.25%, 12/1/08 7,700 8,547
13.50%, 6/15/04 3,000 3,390
(144a), 10.625%, 11/15/09 3,100 3,410
39,507
Lodging 1.5%
Courtyard by Marriott II, Sr. Notes, 10.75%, 2/1/08 $14,700 $14,406
HMH Properties, Sr. Notes, 7.875%, 8/1/08 6,100 5,200
Lodgian Financing, Sr. Sub. Notes, 12.25%, 7/15/09 4,050 3,240
22,846
Long Distance 2.6%
Energis, Sr. Notes, 9.75%, 6/15/09 4,400 4,268
Esprit Telecom, Sr. Notes, 10.875%, 6/15/08 2,000 1,560
Hermes Europe Railtel
Sr. Notes
10.375%, 1/15/09 950 732
11.50%, 8/15/07 1,200 966
Level 3 Communications, Sr. Notes, 9.125%, 5/1/08 2,650 2,282
Metromedia Fiber Network, Sr. Notes, 10.00%, 11/15/08 7,000 6,650
Primus Telecommunications, Sr. Notes, 12.75%, 10/15/09 4,750 4,038
RSL Communications
Sr. Notes
9.125%, 3/1/08 2,000 1,340
12.00%, 11/1/08 2,450 1,813
Viatel
Sr. Disc. Notes, STEP, 0%, 4/15/08 2,650 1,272
Sr. Notes, 11.50%, 3/15/09 4,900 3,822
Williams Communications Group, Sr. Notes,
10.875%, 10/1/09 6,600 6,616
Worldwide Fiber, Sr. Notes, 12.00%, 8/1/09 4,750 4,394
39,753
Manufacturing 1.7%
Hawk, Sr. Notes, 10.25%, 12/1/03 10,629 9,672
HCC Industries, Sr. Sub. Notes, 10.75%, 5/15/07 9,025 3,881
International Wire
Sr. Sub. Notes, 11.75%, 6/1/05 12,302 12,548
26,101
Metals and Mining 1.7%
Bethlehem Steel, Sr. Notes, 10.375%, 9/1/03 4,850 4,753
Better Minerals & Aggregates, Sr. Sub. Notes,
13.00%, 9/15/09 5,750 5,664
Golden Northwest Aluminum, 1st Mortgage Notes
12.00%, 12/15/06 5,350 5,577
Kaiser Aluminum & Chemical, Sr. Sub. Notes,
12.75%, 2/1/03 4,850 4,438
Russel Metals, Sr. Notes, 10.00%, 6/1/09 6,000 5,760
26,192
Paper and Paper Products 3.2%
Ainsworth Lumber, Sr. Notes, 12.50%, 7/15/07 $3,400 $3,502
Doman Industries, Sr. Sub. Notes, 12.00%, 7/1/04 4,000 4,050
Four M, Sr. Notes, 12.00%, 6/1/06 4,750 4,560
Kappa Beheer, Sr. Sub. Notes, 10.625%, 7/15/09 7,000 7,105
Millar Western, Sr. Notes, 9.875%, 5/15/08 3,400 3,230
Norampac, Sr. Notes, 9.50%, 2/1/08 875 851
Paperboard International, Sr. Notes, 8.375%, 9/15/07 6,750 5,603
Repap New Brunswick, Sr. Sec. Notes, 11.50%, 6/1/04 7,550 7,550
Riverwood International, Sr. Sub. Notes,
10.875%, 4/1/08 8,700 8,134
U.S. Timberland Klamath Falls, Sr. Notes,
9.625%, 11/15/07 5,360 4,663
49,248
Printing and Publishing 2.2%
Hollinger International Publishing, Gtd. Notes,
9.25%, 3/15/07 9,900 9,603
Sun Media
Sr. Sub. Notes
9.50%, 2/15/07 4,275 4,083
9.50%, 5/15/07 2,925 2,793
TDL Infomedia Group, Sr. Sub. Notes
12.125%, 10/15/09 (GBP) 3,000 4,580
Transwestern Holdings, Sr. Disc. Notes, STEP,
0%, 11/15/08 4,600 3,335
Transwestern Publishing, Sr. Sub. Notes,
9.625%, 11/15/07 3,900 3,744
Yankeenets Capital, Sr. Notes, 12.75%, 3/1/07 5,750 5,405
33,543
Restaurants 0.9%
AFC Enterprises, Sr. Sub. Notes, 10.25%, 5/15/07 5,000 4,700
Avado Brands, Sr. Notes, 9.75%, 6/1/06 2,000 1,580
Foodmaker, Sr. Sub. Notes, 8.375%, 4/15/08 2,750 2,558
Sbarro, Sr. Notes, 11.00%, 9/15/09 5,000 5,025
13,863
Retail 0.0%
Safelite Glass
Sr. Sub. Notes
9.875%, 12/15/06 (Series B) * 4,600 34
9.875%, 12/15/06 (Series D) * 2,100 16
50
Satellites 0.6%
Orbital Imaging, Sr. Notes, 11.625%, 3/1/05 3,400 2,219
Pegasus Communications
Sr. Notes
9.625%, 10/15/05 $ 2,950 $ 2,832
9.75%, 12/1/06 4,900 4,704
9,755
Service 3.0%
AP Holdings, Sr. Disc. Notes, STEP, 0%, 3/15/08 4,300 430
Avis Rent A Car, Sr. Sub. Notes, 11.00%, 5/1/09 8,000 8,120
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 11,475 10,901
Global Imaging, Sr. Sub. Notes, 10.75%, 2/15/07 6,300 5,481
Intertek Finance, Sr. Sub. Notes, 10.25%, 11/1/06 9,875 8,196
Iron Mountain, Sr. Notes, 8.125%, 5/15/08 6,000 5,213
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 8,250 7,590
45,931
Specialty Chemicals 1.6%
American Pacific, Sr. Notes, 9.25%, 3/1/05 5,750 5,693
Ineos Acryl, Sr. Notes, (144a),
10.25%, 5/15/10 (EUR) !@ 1,950 1,869
Koppers, Sr. Sub. Notes, 9.875%, 12/1/07 8,850 8,142
Octel, Sr. Notes, 10.00%, 5/1/06 9,255 8,561
24,265
Supermarkets 0.6%
Jitney-Jungle Stores
Sr. Sub. Notes
10.375%, 9/15/07 * 8,000 60
12.00%, 3/1/06 * 3,100 465
Pathmark Stores, Sr. Sub. Notes, 10.75%, 11/1/03 * 6,100 427
The Pantry, Sr. Sub. Notes, 10.25%, 10/15/07 8,750 8,138
9,090
Textiles and Apparel 1.4%
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 6,250 6,000
Delta Mills, Sr. Notes, 9.625%, 9/1/07 8,400 6,741
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 10,150 2,538
Westpoint Stevens, Sr. Notes, 7.875%, 6/15/05 7,825 6,573
21,852
Transportation (excluding Railroad) 1.3%
Greyhound Lines, Sr. Notes, 11.50%, 4/15/07 1,100 759
Petro Stopping, Sr. Notes, 10.50%, 2/1/07 5,700 5,044
TravelCenters of America, Sr. Sub. Notes,
10.25%, 4/1/07 15,150 14,317
20,120
Wireless Communications 6.8%
Airgate PCS, Sr. Sub. Notes, STEP, 0%, 10/1/09 $12,800 $7,200
Centennial Cellular, Sr. Sub. Notes,
10.75%, 12/15/08 4,600 4,508
DLJ Secured Loan Trust, 10.125%, 7/7/07 4,500 4,455
Leap Wireless, Units
(Each unit consists of a $1,000 par Sr. Note, (144a)
12.50%, 4/15/10, and 1 warrant) !@ 6,700 6,298
(Each unit consists of a $1,000 par Sr. Disc. Note
(144a), 14.50%, 4/15/10, and 1 warrant) !@ 3,750 1,612
McCaw International, Sr. Disc. Notes,
Zero Coupon, 4/15/07 7,900 5,771
Microcell Telecommunications, Sr. Disc. Notes
STEP, 0%, 6/1/06 (Series B) 3,900 3,569
Millicom International Cellular, Sr. Sub. Disc. Notes
Zero Coupon, 6/1/06 12,000 9,960
Nextel Communications, Sr. Notes, 12.00%, 11/1/08 1,950 2,028
Nextel International, Sr. Disc. Notes, Zero Coupon,
4/15/08 950 584
Nextel Partners, Sr. Disc. Notes, STEP, 0%, 2/1/09 4,550 2,912
Omnipoint, Sr. Notes, (144a), 11.50%, 9/15/09 4,100 4,428
Price Communications Wireless
Sr. Notes, 9.125%, 12/15/06 8,675 8,697
Sr. Sub. Notes, 11.75%, 7/15/07 2,650 2,855
Rogers Cantel, Sr. Deb., 9.75%, 6/1/16 6,625 6,956
Telecorp PCS, Sr. Sub. Disc. Notes, Zero Coupon,
4/15/09 7,550 4,945
Triton PCS, Sr. Sub. Disc. Notes, STEP, 0%, 5/1/08 11,775 8,537
Ubiquitel Operating, Units
(Each unit consists of a $1,000 par Sr. Disc. Note
(144a), STEP, 0%, 4/15/10, and 1 warrant) !@ 12,750 7,013
VoiceStream Wireless
Sr. Disc. Notes, Zero Coupon, 11/15/09 10,850 6,727
Sr. Notes, 10.375%, 11/15/09 3,850 3,898
102,953
Wireline Communications 8.0%
Alaska Communications, Sr. Sub. Notes, 9.375%, 5/15/09 8,630 7,767
Allegiance Telecom, Sr. Notes, Zero Coupon, 2/15/08 10,625 7,491
Colt Telecom, Sr. Disc. Notes, STEP, 0%, 12/15/06 20,000 17,000
Completel Europe, Sr. Notes, (144a),
14.00%, 4/15/10 (EUR) 4,850 4,389
Covad Commerce Group, Sr. Notes, (144a),
12.00%, 2/15/10 4,350 4,013
Covad Communications, Sr. Disc. Notes, 13.50%, 3/15/08 7,850 4,730
Focal Communications, Sr. Notes, (144a),
11.875%, 1/15/10 $ 6,000 $ 5,760
Hyperion Telecommunications, Sr. Disc. Notes, STEP
0%, 4/15/03 4,825 4,318
ICG Services, Sr. Disc. Notes, STEP, 0%, 9/15/05 10,300 9,563
Intermedia Communications
Sr. Disc. Notes, STEP, 0%, 5/15/06 1,000 893
Sr. Notes, STEP, 0%, 3/1/09 4,750 2,648
Jazztel, Sr. Notes, 14.00%, 4/1/09 8,650 8,001
KMC Telecom
Sr. Notes
STEP, 0%, 2/15/08 9,650 4,728
13.50%, 5/15/09 2,000 1,820
McLeod USA, Sr. Notes, STEP, 0%, 3/1/07 8,150 6,418
Netia Holdings, Sr. Notes, 10.25%, 11/1/07 3,800 3,192
Nextlink Communications
Sr. Disc. Notes, STEP, 0%, 6/1/09 6,700 3,819
Sr. Notes, 12.50%, 4/15/06 5,000 5,000
Rhythms Netconnections, Sr. Notes, 12.75%, 4/15/09 4,400 3,476
Tele1 Europe, Sr. Notes, 13.00%, 5/15/09 8,000 7,760
Versatel Telecom, Sr. Notes, 13.25%, 5/15/08 9,200 8,924
121,710
Total Corporate Bonds and Notes (Cost $1,361,957) 1,231,627
EQUITY AND CONVERTIBLE SECURITIES 11.6%
Automobiles and Related 0.0%
Hayes Wheels International, Warrants, 7/15/07 * 18 264
264
Beverages 0.7%
Dr. Pepper Bottling Holdings, Common Stock
(Class A) *!+@ 397 9,914
9,914
Broadcasting 1.3%
Citadel Broadcasting, Pfd. Stock PIK (Series B) * 66 7,262
Cumulus Media, Exch. Pfd. Stock (Series A) 3 2,666
Sinclair Capital, Pfd. Stock (Series B) 87 8,218
Spanish Broadcasting System, Common Stock, (144a) *!+@ 64 980
19,126
Cable Operators 1.9%
Classic Communications, Common Stock, (144a) *+ $9 $64
CSC Holdings
PIK, Pfd. Stock (Series H) 45 4,848
PIK, Pfd. Stock (Series M) 222 23,992
Peachtree Cable Associates, Common Stock * 10 0
Time Warner, Common Stock 2 121
UIH Australia Pacific, Warrants, 5/15/06 * 5 148
29,173
Consumer Products 0.0%
Hedstrom Holdings, Common Stock, (144a) * 246 2
2
Electronic Components 0.0%
Asat Finance, Warrants, (144a) * 2 210
210
Energy 0.1%
Clark USA, Cum. Sr. Exch. Pfd. PIK, Stock * 63 1,382
1,382
Entertainment and Leisure 0.1%
Premier Parks, Common Stock * 60 1,429
1,429
Gaming 0.0%
Becker Gaming, Warrants, 11/15/00 * 425 4
Capital Gaming International, Common Stock *+ 1 0
Hollywood Casino, Common Stock (Class A) * 93 469
473
Health Care 0.0%
Wright Medical Technology, Warrants, 6/30/03 * 38 0
0
Internet Service Providers 0.0%
Cybernet Internet Services, Warrants, 7/1/09 * 3 201
Splitrock Services, Warrants, 7/15/08 *+ 2 366
567
Lodging 0.1%
Lodgian Capital Trust I, Exch. Pfd. Stock * 125 2,000
2,000
Long Distance 0.7%
Global Crossing Holdings, Sr. Pfd. Exch. Stock 101 9,874
RSL Communications, Warrants, (144a), 11/15/06 3 144
10,018
Metals and Mining 0.3%
International Utility Structures
Common Stock (CAD) * $ 25 $ 30
Exch. Pfd. PIK, Stock (144a) * 1 1,175
Pfd. Stock (144a) * 5 3,681
4,886
Paper and Paper Products 0.4%
Packaging Corp. of America, Common Stock * 100 1,150
Smurfit-Stone Container, Common Stock * 300 4,266
5,416
Retail 0.0%
Lamonts Apparel
Common Stock * 3 0
Warrants, 1/31/08 *+ 1 0
0
Satellites 0.5%
Pegasus Communications, Exch. Pfd. PIK, Stock * 6 6,837
6,837
Service 0.0%
Efficient Market Services, Common Stock *!+@ 558 0
0
Textiles and Apparel 0.2%
Anvil Holdings, PIK, Sr. Exch. Pfd. Stock (Series B) * 304 3,042
3,042
Wireless Communications 3.3%
Clearnet Communications, Common Stock (Class A) * 66 1,910
Dobson Communications, PIK, Pfd. Stock * 14 13,640
Microcell Telecommunications, Common Stock (Class B) * 71 2,617
Nextel Communications
Common Stock (Class A)* 12 1,126
Exch. Pfd. PIK, Stock (Series E) * 10 9,193
Exch. Pfd. PIK, Stock (Series D) * 121 12,326
Rural Cellular, PIK, Sr. Exch. Pfd. Stock * 11 9,963
50,775
Wireline Communications 2.0%
Allegiance Telecom, Warrants, 2/3/08* 8 1,163
AT&T Canada, Common Stock, (Class B) *!+@ 28 991
E. Spire Communications, PIK, Jr. Red. Pfd. Stock * 75 2,638
Intermedia Communications
Exch. Pfd. PIK, Stock (Series B)* $82 $7,589
(144a), Warrants, 6/1/00 * 2 312
ITC Deltacom, Common Stock * 70 1,271
KMC Telecom, (144a), Warrants, 4/15/08 * 5 12
Nextlink Communications, Sr. Exch. Pfd. Stock * 252 12,621
Rhythms Netconnections, Pfd. Conv., (144a) * 30 1,687
Tele1 Europe Holding ADR, Common Stock * 148 1,721
30,005
Total Equity and Convertible Securities (Cost $188,790) 175,519
MONEY MARKET FUNDS 5.6%
Reserve Investment Fund, 6.48% # 86,163 86,163
Total Money Market Funds (Cost $86,163) 86,163
Total Investments in Securities
98.0% of Net Assets (Cost $1,636,910) $1,493,309
Other Assets Less Liabilities 30,536
NET ASSETS $1,523,845
----------
Net Assets Consist of:
Accumulated net investment income - net of distributions $898
Accumulated net realized gain/loss - net of distributions (183,105)
Net unrealized gain (loss) (143,601)
Paid-in-capital applicable to 203,209,843 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares authorized 1,849,653
NET ASSETS $1,523,845
----------
NET ASSET VALUE PER SHARE
High Yield shares
($1,523,834,662/203,208,522 shares outstanding) $7.50
High Yield Advisor shares
($9,910/1,321 shares outstanding) $7.50
! Private Placement
* Non-income producing
+ Securities valued by the Fund's Board of Directors
@ Securities contain some restrictions as to public resale - total of such
securities at period-end amounts to 2.8% of net assets
# Seven-day yield
STEP Stepped coupon note for which the interest rate will adjust on
specified future date(s). 144a Security was purchased pursuant to Rule
144a under the Securities Act of 1933 and may not be resold subject to that
rule except to qualified institutional buyers - total of such securities
at period-end amounts to 7.0% of net assets.
ADR American depository receipt
CAD Canadian dollar
EUR Euro
GBP Pound sterling
PIK Payment-in-Kind
The accompanying notes are an integral part of these financial statements.
T. Rowe Price High Yield Fund
--------------------------------------------------------------------------------
Statement of Operations
--------------------------------------------------------------------------------
In thousands
Year
Ended
5/31/00
Investment Income (Loss)
Income
Interest $ 153,245
Dividend 18,532
Total income 171,777
Expenses
Investment management 10,209
Shareholder servicing
High Yield shares 2,840
High Yield Advisor shares --
Custody and accounting 251
Prospectus and shareholder reports
High Yield shares 141
High Yield Advisor shares --
Legal and audit 93
Registration 23
Directors 11
Miscellaneous 36
Total expenses 13,604
Expenses paid indirectly (72)
Net expenses 13,532
Net investment income (loss) 158,245
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (43,798)
Foreign currency transactions (592)
Net realized gain (loss) (44,390)
Change in net unrealized gain or loss on securities (123,759)
Net realized and unrealized gain (loss) (168,149)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $(9,904)
----------
The accompanying notes are an integral part of these financial statements.
T. Rowe Price High Yield Fund
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
In thousands
Year
Ended
5/31/00 5/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 158,245 $ 152,300
Net realized gain (loss) (44,390) (42,476)
Change in net unrealized gain or loss (123,759) (64,310)
Increase (decrease) in net assets from operations (9,904) 45,514
Distributions to shareholders
Net investment income
High Yield shares (160,242) (151,465)
Capital share transactions*
Shares sold
High Yield shares 263,358 397,369
High Yield Advisor shares 10 -
Distributions reinvested
High Yield shares 130,969 125,023
Shares redeemed
High Yield shares (476,197) (365,860)
Redemption fees received
High Yield shares 297 398
Increase (decrease) in net assets from capital
share transactions (81,563) 156,930
Net Assets
Increase (decrease) during period (251,709) 50,979
Beginning of period 1,775,554 1,724,575
End of period $1,523,845 $1,775,554
-------------------------
*Share information
Shares sold
High Yield shares 33,110 47,202
High Yield Advisor shares 1 -
Distributions reinvested
High Yield shares 16,610 14,826
Shares redeemed
High Yield shares (59,930) (43,431)
Increase (decrease) in shares outstanding (10,209) 18,597
The accompanying notes are an integral part of these financial statements.
T. Rowe Price High Yield Fund
--------------------------------------------------------------------------------
May 31, 2000
Notes to Financial Statements
--------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price High Yield Fund, Inc. (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company. The fund seeks high current income and, secondarily,
capital appreciation by investing principally in a widely diversified
portfolio of high-yield corporate bonds, income-producing convertible
securities, and preferred stocks. The fund has two classes of shares-High
Yield, offered since December 31, 1984, and High Yield Advisor Class, first
offered on March 31, 2000. High Yield Advisor Class sells its shares only
through financial intermediaries, which it compensates for distribution and
certain administrative services under a Board-approved Rule 12b-1 plan.
Each class has exclusive voting rights on matters related solely to that
class, separate voting rights on matters that relate to both classes, and,
in all other respects, the same rights and obligations as the other class.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company
industry; these principles may require the use of estimates by fund
management.
Valuation Debt securities are generally traded in the over-the-counter
market. Investments in securities with original maturities of one year or
more 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.
Securities with original maturities of less than one year are stated at
fair value, which is determined by using a matrix system that establishes a
value for each security based on money market yields.
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 not traded on a particular day and securities
regularly traded in the over-the-counter market are valued at the mean of
the latest bid and asked prices. Other equity securities 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.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of
such currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of the fund, as authorized by the Board of Directors.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated
into U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized
and unrealized security gains and losses is reflected as a component of
such gains and losses.
Premiums and Discounts Premiums on high-yield debt securities, other than
PIK and STEP bonds, are recognized upon disposition of the security as gain
or loss 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. Original issue
discounts, and all premiums and discounts on PIK and STEP bonds, are
amortized for both financial reporting and tax purposes.
Class Accounting The High Yield Advisor Class pays distribution and
administrative expenses, in the form of Rule 12b-1 fees, in an amount not
exceeding 0.25% of the class's average net assets. Shareholder servicing,
prospectus, and shareholder report expenses are charged directly to the
class to which they relate. Expenses common to both classes, investment
income, and realized and unrealized gains and losses are allocated to the
classes based upon the relative daily net assets of each class. Income
distributions are declared by each class on a daily basis, and paid
monthly. Capital gain distributions are declared and paid by the fund on an
annual basis.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with federal income tax regulations and may differ from those determined in
accordance with generally accepted accounting principles. Expenses paid
indirectly reflect credits earned on daily uninvested cash balances at the
custodian and are used to reduce the fund's custody charges.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Noninvestment-Grade Debt Securities At May 31, 2000, the fund held
investments in noninvestment-grade debt securities, commonly referred to as
"high-yield" or "junk" bonds. A real or perceived economic downturn or
higher interest rates could adversely affect the liquidity or value, or
both, of such securities because such events could lessen the ability of
issuers to make principal and interest payments.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $1,147,532,000 and $1,276,976,000, respectively, for
the year ended May 31, 2000.
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. As of May 31, 2000, the fund has capital loss
carryforwards for federal income tax purposes of $164,272,000, of which
$6,571,000 expires in 2002, $40,450,000 in 2003, and $117,251,000
thereafter through 2008. The fund intends to retain gains realized in
future periods that may be offset by available capital loss carryforwards.
At May 31, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$1,636,910,000. Net unrealized loss aggregated $143,601,000 at period-end,
of which $25,075,000 related to appreciated investments and $168,676,000 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 $808,000 was payable at May 31, 2000. The fee is computed
daily and paid monthly, and consists of an individual fund fee equal to
0.30% 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 0.295% for assets
in excess of $120 billion. At May 31, 2000, and for the year then ended,
the effective annual group fee rate was 0.32%. The fund pays a pro-rata
share of the group fee based on the ratio of its net assets to those of the
group.
The manager has agreed to bear any expenses through December 31, 2001,
which would cause High Yield Advisor shares' ratio of expenses to average
net assets to exceed 1.05%. Thereafter, through December 31, 2003, High
Yield Advisor shares are required to reimburse the manager for these
expenses, provided that its average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing its ratio of
expenses to average net assets to exceed 1.05%.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund
receives certain other services. The manager computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services,
Inc. is the fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the fund. T. Rowe Price
Retirement Plan Services Inc. provides subaccounting and recordkeeping
services for certain retirement accounts invested in the fund. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $1,527,000 for the year ended May 31, 2000, of which $164,000
was payable at period-end.
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds
(Spectrum) may invest. Spectrum does not invest in the underlying funds for
the purpose of exercising management or control. Expenses associated with
the operation of Spectrum are borne by each underlying fund to the extent
of estimated savings to it and in proportion to the average daily value of
its shares owned by Spectrum, pursuant to special servicing agreements
between and among Spectrum, the underlying funds, T. Rowe Price, and, in
the case of T. Rowe Price Spectrum International, Rowe Price-Fleming
International. Spectrum Income Fund held approximately 32.2% of the
outstanding shares of the fund at May 31, 2000. For the year then ended,
the fund was allocated $1,217,000 of Spectrum expenses, $120,000 of which
was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and other
accounts managed by T. Rowe Price and its affiliates and are not available
to the public. The Reserve Funds pay no investment management fees.
Distributions from the Reserve Funds to the fund for the year ended May 31,
2000, totaled $6,217,000 and are reflected as interest income in the
accompanying Statement of Operations.
T. Rowe Price High Yield Fund
--------------------------------------------------------------------------------
Report of Independent Accountants
--------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
T. Rowe Price High Yield Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position
of T. Rowe Price High Yield Fund, Inc. (the "Fund") at May 31, 2000, and
the results of its operations, the changes in its net assets and the
financial highlights for each of the fiscal periods presented, in
conformity with accounting principles generally accepted in the United
States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at May 31, 2000 by correspondence with
custodians, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
June 19, 2000
T. Rowe Price High Yield Fund
--------------------------------------------------------------------------------
Tax Information (Unaudited) for the Tax Year Ended 5/31/00
--------------------------------------------------------------------------------
We are providing this information as required by the Internal Revenue Code.
The amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
For corporate shareholders, $18,532,000 of the fund's distributed income
and short-term capital gains qualified for the dividends-received
deduction.
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.
Automated 24-Hour Services Including Tele*Access(registered trademark) and
the T. Rowe Price Web site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service commission rates.**
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing markets and
financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial
markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a September 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending on
size of order.
T. Rowe Price Mutual Funds
STOCK FUNDS
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery*
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Bond
International Bond
MONEY MARKET FUNDS!
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
! Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by
Security Benefit Life Insurance Company. In New York, it[#FSB201(11-96)]
is issued by First Security Benefit Life Insurance Company
of New York, White Plains, NY. T. Rowe Price refers to the underlying
portfolios' investment managers and the distributors, T. Rowe Price
Investment Services, Inc.; T. Rowe Price Insurance Agency, Inc.; and T.
Rowe Price Insurance Agency of Texas, Inc. The Security Benefit Group of
Companies and the T. Rowe Price companies are not affiliated. The variable
annuity may not be available in all states. The contract has limitations.
Call a representative for costs and complete details of the coverage.
T. Rowe Price Advisory Services and Retirement Resources
--------------------------------------------------------------------------------
Advisory Services, Retirement Resources
T. Rowe Price is your full-service retirement specialist. We have developed
unique advisory services that can help you meet the most difficult
retirement challenges. Our broad array of retirement plans is suitable for
individuals, the self-employed, small businesses, corporations, and
nonprofit organizations. We also provide recordkeeping, communications, and
investment management services, and our educational materials, self-help
planning guides, and software tools are recognized as among the industry's
best. For information or to request literature, call us at 1-800-638-5660,
or visit our Web site at www.troweprice.com.
ADVISORY SERVICES
T. Rowe Price Retirement Income ManagerSM helps retirees or those within
two years of retirement determine how much income they can take in
retirement. The program uses extensive statistical analysis and the input
of financial planning professionals to suggest an income plan that best
meets your objectives.
T. Rowe Price Rollover Investment Service offers asset allocation advice to
those planning a major change in their qualified retirement plans, such as
a 401(k) rollover from a previous employer or an IRA transfer.
RETIREMENT RESOURCES AT T. ROWE PRICE
Traditional, Roth, and Rollover IRAs
SEP-IRA and SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase
Pension and Profit Sharing Plans)
401(k) and 403(b)
457 Deferred Compensation
Planning and Informational Guides
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
Insights Reports
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
Software Packages
T. Rowe Price Retirement Planning AnalyzerTM CD-ROM or diskette $19.95. To
order, please call 1-800-541-5760. Also available on the Internet for
$9.95.
T. Rowe Price Variable Annuity AnalyzerTM CD-ROM or diskette, free. To
order, please call 1-800-469-5304.
T. ROWE PRICE IMMEDIATE VARIABLE ANNUITY (INCOME ACCOUNT)
Investment Kits
We will be happy to send you one of our easy-to-follow investment kits when
you are ready to invest in any T. Rowe Price retirement vehicle, including
IRAs, qualified plans, small-business plans, or our no-load variable
annuities.
T. Rowe Price Insights Reports
--------------------------------------------------------------------------------
The Fundamentals of Investing
Whether you are unsure how to get started or are saving for a specific
goal, such as retirement or college, the T. Rowe Price Insights series can
help you make informed investment decisions. These reports, written in
plain English about fundamental investment topics, can be useful at every
stage of your investment journey. They cover a range of topics, from the
basic, such as getting started with mutual funds, to the more advanced,
such as managing risk through diversification or buying individual
securities through a broker. To request one or more Insights, call us at
1-800-638-5660.
INSIGHTS REPORTS
General Information
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
Investment Strategies
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
Types of Securities
The Basics of International Stock Investing
The Basics of Tax-Free Investing
The Fundamentals of Fixed Income Investing
Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks
Understanding Derivatives
Understanding High-Yield "Junk" Bonds
Brokerage Insights
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
T. Rowe Price Brokerage
--------------------------------------------------------------------------------
Brokerage Services
T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
T. Rowe Price Brokerage provides high-quality services and financial tools you
can use to manage your investments effectively and conveniently. We also offer
significant commission savings over full-service brokerages on a wide range of
individual securities and other investments.*
Internet and Automated Services You can enter trades, access quotes, and
review account information 24 hours a day, seven days a week, by telephone
or computer. We offer a flat-rate commission of $24.95 on stock trades
placed through our Internet-Trader service.**
Research Services To help you make informed investment decisions, we offer
access to several sources of data. You can research your investments using
our Online Research & News Service, provided by Thomson Investors Network,
which includes company profiles, intra-day and 12-month interactive
charting, and analysts' ratings and earnings estimates. Using our Research
On Call service, you can request reports from Standard & Poor's, Vicker's,
Lipper, and other well-known research providers to be delivered by fax or
by mail.
Dividend Reinvestment Service This service helps keep more of your money
working for you. Cash dividends (of $10 or greater) from your eligible
securities will be invested automatically in additional shares of the same
company, free of charge. Most stocks listed on national securities
exchanges or Nasdaq are eligible for this service.
* Based on a September 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending on
size of order.
** $24.95 per trade for up to 1,000 shares plus an
additional $.02 for each share over 1,000 shares. Visit our Web site
for a complete commission schedule or call for rates on
representative-assisted and other non-Internet trades.
For fund and account information
or to conduct transactions,
24 hours, 7 days a week
By touch-tone telephone
Tele*Access 1-800-638-2587
By Account Access on the Internet
www.troweprice.com/access
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132
To open a brokerage account
or obtain information, call:
1-800-638-5660
Internet address:
www.troweprice.com
Plan Account Lines for retirement
plan participants:
The appropriate 800 number appears
on your retirement account statement.
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 appropriate
to the fund or funds covered in this
report.
Walk-In Investor Centers:
For directions, call 1-800-225-5132
or visit our Web site
Baltimore Area
Downtown
101 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
Colorado Springs
4410 ArrowsWest Drive
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price, Invest With Confidence(registered trademark)
T. Rowe Price Investment Services, Inc., Distributor. F57-050 5/31/00
