<PAGE>
================================================================================
T. Rowe Price
- --------------------------------------------------------------------------------
Annual Report
New America Growth Fund
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
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NEW AMERICA GROWTH FUND
- -----------------------
* Stocks surged to new records in 1999, but market leadership remained
narrow, with technology and telecom stocks generating most of the
gains.
* While the fund's overall 1999 performance was respectable, results
lagged our benchmarks primarily due to a weak second half.
* Performance was hampered by our historic underweighting in pure-play
technology stocks, though a number of our media and telecom holdings
scored big gains.
* Our portfolio of solid growth companies with recurring revenues and
attractive valuations should perform better once market participation
broadens.
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UPDATES AVAILABLE
- -----------------
For updates on T. Rowe Price funds following the end of each calendar
quarter, please see our Web site at www.troweprice.com.
================================================================================
FELLOW SHAREHOLDERS
- -------------------
While 1999 will be recalled as the continuation of a strong bull market, it
should also be remembered as the year of the technology stock. We spoke in the
last report about the narrowness of the market in the first half of the year,
and this only intensified in the second half. While the Standard & Poor's 500
Stock Index gained 7.7% in the six months ended December 31, the
technology-laden Nasdaq Composite rose 51.5% in the same period, following a
gain of "only" 22.5% in the first half. Internet-related stocks rose
significantly more than the overall Nasdaq index. While this might suggest a
broadly exuberant market, in fact, about half of all stocks had negative returns
for the year.
================================================================================
PERFORMANCE COMPARISON
----------------------
Periods Ended 12/31/99 6 Months 12 Months
---------------------- -------- ---------
New America Growth Fund 1.63% 12.76%
-------------------------------------------------------
S&P 500 7.71 21.04
-------------------------------------------------------
Lipper Growth Funds Average 15.57 29.27
-------------------------------------------------------
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<PAGE>
The New America Growth Fund could not keep pace with the unmanaged S&P 500
Index and the average growth mutual fund in such a narrow market. While we had
hoped for a broadening of the market into mid-sized and non-technology
companies, this did not occur. The New America Growth Fund has always invested
in a broad range of mid- and large-capitalization growth stocks. As such, it
typically has had the advantage of a wider set of investment opportunities than
the average growth fund. In general, over the last 15 years, this has benefited
shareholders. More recently, the best gains have not been found in mid-cap
stocks but primarily in the largest, in spite of significantly more attractive
valuations in mid-caps. The S&P MidCap Index rose 14.72% in 1999, more in line
with your fund's return. We believe that the ability to invest across the
capitalization spectrum will benefit shareholders in the long run.
(Capitalization is a measure of the size of a company, and is defined by the
company's stock price multiplied by shares outstanding.)
The other primary reason the New America Growth Fund has underperformed
recently is that it has not historically invested heavily in technology stocks.
The fund was established in 1985 on the premise that the "new America" was
moving from a manufacturing to a service economy, and therefore the fund would
focus primarily on service companies. We still believe this premise is true, and
we will continue to look for companies with a high degree of recurring revenues
(as opposed to one-time revenues such as manufacturers typically rely on and
receive only when they make a new sale). However, we have spent significant time
attempting to redefine the new "new America" and how your fund should adapt. It
is hard to deny technology's impact on our economy: it is the primary enabler of
our strong economic growth without the inflation that generally accompanies such
long periods of prosperity. Technology is also the largest component of the S&P
500, at approximately 30%. Furthermore, the majority of growth funds have
technology weightings far higher than 30%. By comparison, the New America Growth
Fund has about 4% of its holdings in technology.
We no longer believe it is appropriate to exclude such a large portion of
the economy from the fund's investment program. Therefore, we have gradually
begun to increase the fund's holdings of technology stocks, and also plan to add
selected investments in pharmaceuticals and biotechnology, which are also major
growth drivers in the "new America." Our same core principles must apply to any
technology stock or any other growth stock added to the portfolio -- the company
should embody the "new America," should be a leader in its industry segment, and
must have fundamentals that justify its stock price and valuation.
YEAR-END DISTRIBUTION
- ---------------------
Your Board of Directors declared a long-term capital gain distribution of
$5.40. This was paid on December 16, 1999, to shareholders of record on December
14. You should have received your check or statement reflecting it as well as
Form 1099-DIV summarizing this information for 1999 tax purposes.
<PAGE>
MARKET ENVIRONMENT
- ------------------
In spite of concerns about inflation, interest rates, and the Y2K computer
glitch, the U.S. economy continued to perform very well in the second half. In
fact, 1999 represented the ninth consecutive year of economic growth. Consumer
confidence was also strong, and although it dipped in the third quarter, it
ended the year at an all-time high. In this environment, U.S. corporate profits
continued to grow strongly. But markets were extremely volatile in the second
half. Most of the fears discussed above manifested themselves in the third
quarter as the Federal Reserve raised short-term rates and Y2K anxiety peaked.
Most major indexes were down in the third quarter, with the S&P 500 falling
6.2%. However, stocks surged in the fourth quarter as growth and inflation news
continued to be benign and Y2K fears abated. The New America Growth Fund
outperformed the S&P 500 in the fourth quarter, rising 15.7% compared with 14.9%
for the index.
In the fourth quarter, the tech-laden Nasdaq Composite beat the S&P 500 for
the eighth time in 10 quarters. Over this period, the Nasdaq gained 182% versus
a 72% total return for the S&P 500. The top 20 companies in the S&P 500 account
for about 34% of the market capitalization of the index but represented nearly
55% of the appreciation in 1999. Both of these trends have hurt your fund's
recent returns as we invest not only in many mid-capitalization names but also
in services stocks due to the fund's historical focus. A huge fourth quarter
surge enabled the Russell 2000 Index of smaller companies to outperform the S&P
500 last year for the first time since 1993. This advance was led again by
technology stocks.
International markets continued to stabilize and advance. Stock markets
around the world hit new highs, including those in Germany, Mexico, and Brazil.
Although the Nikkei did not reach a record, the Japanese market is at its
highest level since early 1997. These strong equity performances will likely add
further to the global growth momentum.
PORTFOLIO REVIEW
- ----------------
The New America Growth Fund's performance mirrored the narrowness in the
general market during 1999. Communications services and media services were by
far the largest contributors in both the second half and full year. Although
they are not pure technology sectors, these industries are participating
directly in the movement toward wireless technologies, broadband, and new forms
of entertainment on different mediums. The top performer in the fund during the
second half and full year was VOICESTREAM WIRELESS, the PCS company that was
spun out of WESTERN WIRELESS earlier in the year. VoiceStream is benefiting from
increasing penetration of cellular phones in the U.S. as well as rising usage,
which increases the customers' monthly bill. VoiceStream's former parent was
also a strong performer for the second half and full year. Whereas VoiceStream
focuses on major metropolitan m arkets with its PCS service, Western Wireless
focuses on rural markets with its cellular service. The next-best contributor in
the second half and the full year was AT&T LIBERTY MEDIA, our largest holding.
Liberty Media, only nominally a subsidiary of AT&T, is a portfolio of companies
positioned to capitalize on the continuing growth of cable networks. The
majority of the company's portfolio is centered around ownership interests in
over a hundred cable networks, such as The Learning Channel and The Discovery
Channel. In addition, the company has several investments in interactive TV and
Internet infrastructure.
<PAGE>
Among our other top holdings, HOME DEPOT, AMFM CORPORATION, OUTDOOR
SYSTEMS, and INFINITY BROADCASTING all performed well in the second half.
Infinity Broadcasting recently closed its acquisition of Outdoor Systems to
become one of the largest providers of out-of-home media companies with a stable
of radio stations and outdoor displays. Home Depot has benefited from a robust
economy and, specifically, strong housing turnover in the last several quarters.
Additionally, the company has increased its focus on the professional market,
which is significantly increasing the available market for the company and could
serve as a buffer if the consumer market slows because of higher interest rates.
Another top holding, though not a top performer in the latest period, is
CATALINA MARKETING, the nation's leading supplier of in-store electronic
scanner-activated consumer promotions. The company is taking its expertise in
the grocery market and applying it to the pharmaceutical market.
The worst performing industry for the second half was environmental
services, and two of the worst-performing stocks were WASTE MANAGEMENT and
REPUBLIC SERVICES. Waste Management was significantly more problematic, as there
were accounting, management, and earnings issues. We have since eliminated the
position. Unfortunately, when the industry leader takes it on the chin, it
causes repercussions for the rest of the industry. Republic Services and others
fell precipitously after the Waste Management news came out, and thus Republic's
ability to use its stock as acquisition currency was hampered. As a result,
earnings estimates had to be brought down, which put yet more pressure on the
stock. We have maintained our position in Republic as the company's internal
growth potential does not appear to be tarnished.
Another trend we saw in the fund and the market in general was fear that
certain companies would not be successful in the new on-line environment. OFFICE
DEPOT performed poorly as its growth slowed due primarily to the lower average
selling prices of computers, but also due to fears that it has not prepared
adequately for an on-line environment. GALILEO INTERNATIONAL, which has met all
of its earnings targets, is another example of a company that performed poorly
due to a perception that it is an old-line company, though the company also
experienced a slowdown in domestic bookings because of a reorganization of its
sales force.
================================================================================
SECTOR DIVERSIFICATION
----------------------
12/31/98 6/30/99 12/31/99
-------- ------- --------
Financial Services 15.4% 14.5% 10.0%
-------------------------------------------------------
Consumer Services 31.7 27.8 24.0
-------------------------------------------------------
Business Services 25.7 29.0 25.1
-------------------------------------------------------
Health Care 4.0 2.7 2.0
-------------------------------------------------------
Technology 1.3 1.2 4.1
-------------------------------------------------------
Media Services 21.7 23.0 26.4
-------------------------------------------------------
Reserves 0.2 1.8 8.4
-------------------------------------------------------
Total 100.0% 100.0% 100.0%
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<PAGE>
While we are very cognizant of the threat the Internet poses to incumbents
and believe e stablished firms must prepare for attacks on their traditional
markets, we do not believe that all incumbents will be losers. Although some h
ave gotten off to a slow start, many have the advantage of customer
relationships, internally developed earnings and cash flow, and years of
expertise in their respective markets. While it may look bleak in an environment
where any business model that involves the Internet seems to attract capital at
virtually zero cost, we do not believe this can continue forever.
We have amended our industry categories to place technology, health care,
and media services under separate headings. This will give you a clearer picture
of how the fund is invested. Changes in sector weightings in the last six months
were relatively modest but important. We lowered our weighting in health care,
primarily due to fears that the political environment will make the sector
volatile in the near term. Given the current valuations for most technology
stocks, we have taken a very gradual approach to adding new names. Many of the
companies we have added are market leaders, such as DELL COMPUTER, MICROSOFT,
and AMERICA ONLINE. We will continue to look for opportunities to add selected
technology stocks and strongly believe that selected technology stocks will
continue to lead growth in the years ahead.
Significant other new holdings include TJX, the leader in off-price apparel
with its TJ Maxx and Marshalls stores. The company has some new store concepts
that look promising as well. We took advantage of some warm weather fears during
the Thanksgiving holiday period to initiate our position. Two media names, COX
COMMUNICATIONS and CHARTER COMMUNICATIONS, were also added. Both are cable
companies that are benefiting from several new services (high speed data,
digital cable, telephony) that are being offered over cable lines. Major
eliminations were Waste Management, TOTAL RENAL CARE, and ACXIOM.
OUTLOOK
- -------
Given the Fed's strong desire to slow the economy, it appears likely that
economic growth in 2000 will not be as robust as in 1999. That said, employment
growth is still strong, interest rates -- although higher -- are still at
relatively low levels, and there are no signs of significantly higher inflation.
These are all generally very positive signs for the market.
***************************************************
. . . A BROADENING OF
PARTICIPATION WOULD BE A BIG
POSITIVE FOR THE OVERALL
MARKET . . .
***************************************************
<PAGE>
A bigger issue is the continued narrowness of the market. Although all
major indexes were up during the second half of 1999, about 50% of all U.S.
stocks (with prices greater than $5) were down. Additionally, the largest
companies in the S&P 500 continued to significantly outperform the smaller ones.
We still believe a broadening of participation would be a big positive for the
overall market, but fear that the broadening might occur in the context of a
market correction. To put this in perspective, over the last year, companies
with price/earnings ratios greater than 37 gained more than 35%, whereas stocks
that had P/E ratios from 15 to 25 rose less than 5% overall. The disparity
between the top-tier companies and second- and third-tier companies is as wide
as it has been in recent memor y. Certainly market leaders deserve to trade at a
premium, but we question the degree of that premium at current valuations.
Against this backdrop, we remain excited about the fund's holdings. We
believe that New America Growth Fund is well positioned with a mix of
attractively valued companies as well as some market leaders that trade at high
valuations. While we certainly wouldn't be immune to a market decline, the fund
is not positioned as aggressively as many other growth funds. We always look to
opportunistically increase the quality and growth rate of fund holdings, and
would certainly attempt to do so in any market decline in which the valuation
gap between certain companies narrowed. We still expect most of the companies in
the fund to grow faster than the typical S&P 500 stock, even though they trade
at lower multiples.
Respectfully submitted,
/s/
John H. Laporte
President
/s/
Marc L. Baylin
Executive Vice President
January 27, 2000
********************************************************************************
EFFECTIVE MARCH 31, 2000, MARC L. BAYLIN
ASSUMES DAY-TO-DAY RESPONSIBILITY FOR
MANAGEMENT OF THE NEW AMERICA GROWTH FUND AS
CHAIRMAN OF THE FUND'S INVESTMENT ADVISORY
COMMITTEE. MR. BAYLIN JOINED T. ROWE PRICE IN
1993 AS AN INVESTMENT ANALYST AND HAS BEEN A
MEMBER OF THE FUND'S ADVISORY COMMITTEE FOR
SEVERAL YEARS. IN HIS NEW ROLE, MR. BAYLIN
SUCCEEDS JOHN H. LAPORTE, A DIRECTOR OF T.
ROWE PRICE ASSOCIATES, WHO REMAINS PRESIDENT
OF THE FUND AND A MEMBER OF ITS ADVISORY
COMMITTEE.
This supplements the New America Growth Fund
prospectus dated May 1, 1999.
********************************************************************************
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
TWENTY-FIVE LARGEST HOLDINGS
- ----------------------------
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
12/31/99
- ----------------------------------------------------------
AT&TLiberty Media 4.1%
- ----------------------------------------------------------
AMFM 3.8
- ----------------------------------------------------------
Infinity Broadcasting 3.5
- ----------------------------------------------------------
Home Depot 3.2
- ----------------------------------------------------------
VoiceStream Wireless 3.1
- ----------------------------------------------------------
Western Wireless 2.7
- ----------------------------------------------------------
Circuit City Stores 2.6
- ----------------------------------------------------------
Catalina Marketing 2.6
- ----------------------------------------------------------
MCIWorldCom 2.3
- ----------------------------------------------------------
Affiliated Computer Services 2.2
- ----------------------------------------------------------
Ceridian 2.1
- ----------------------------------------------------------
First Data 2.1
- ----------------------------------------------------------
Morgan Stanley Dean Witter 2.1
- ----------------------------------------------------------
Costco Wholesale 2.0
- ----------------------------------------------------------
NOVA 1.9
- ----------------------------------------------------------
Freddie Mac 1.8
- ----------------------------------------------------------
Comcast 1.7
- ----------------------------------------------------------
Waddell & Reed Financial 1.6
- ----------------------------------------------------------
U.S. Foodservice 1.6
- ----------------------------------------------------------
Outback Steakhouse 1.6
- ----------------------------------------------------------
Premier Parks 1.6
- ----------------------------------------------------------
Apollo Group 1.6
- ----------------------------------------------------------
Family Dollar Stores 1.4
- ----------------------------------------------------------
Fox Entertainment Group 1.4
- ----------------------------------------------------------
Cox Communications 1.4
- ----------------------------------------------------------
Total 56.0%
Note: Table excludes reserves.
================================================================================
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
CONTRIBUTIONS TO THE CHANGE IN NET ASSET VALUE PER SHARE
- --------------------------------------------------------
6 Months Ended 12/31/99
TEN BEST CONTRIBUTORS
- ---------------------
VoiceStream Wireless 205(cent)
- -------------------------------------------
Western Wireless 100
- -------------------------------------------
AT&T Liberty Media 79
- -------------------------------------------
Home Depot 64
- -------------------------------------------
AMFM 57
- -------------------------------------------
Outdoor Systems *** 49
- -------------------------------------------
Morgan Stanley Dean Witter 28
- -------------------------------------------
Catalina Marketing 27
- -------------------------------------------
Cox Communications * 23
- -------------------------------------------
Cendant 22
- -------------------------------------------
Total 654(cent)
TEN WORST CONTRIBUTORS
- ----------------------
Waste Management ** -93(cent)
- -------------------------------------------
Office Depot 59
- -------------------------------------------
Galileo International 52
- -------------------------------------------
Sylvan Learning Systems 41
- -------------------------------------------
Associates First Capital 38
- -------------------------------------------
Republic Services 37
- -------------------------------------------
Outback Steakhouse 34
- -------------------------------------------
Kroger 30
- -------------------------------------------
Total Renal Care Holdings ** 29
- -------------------------------------------
SunGard Data Systems 26
- -------------------------------------------
Total -439(cent)
12 Months Ended 12/31/99
<PAGE>
TEN BEST CONTRIBUTORS
- ---------------------
VoiceStream Wireless 226(cent)
- -----------------------------------------
Western Wireless 168
- -----------------------------------------
AT&TLiberty Media 144
- -----------------------------------------
AMFM 75
- -----------------------------------------
Outdoor Systems *** 74
- -----------------------------------------
Home Depot 70
- -----------------------------------------
Circuit City Stores 69
- -----------------------------------------
Morgan Stanley Dean Witter 58
- -----------------------------------------
AirTouch Communications ** 57
- -----------------------------------------
Comcast 54
- -----------------------------------------
Total 995(cent)
TEN WORST CONTRIBUTORS
- ----------------------
Waste Management ** -76(cent)
- -----------------------------------------
Office Depot 74
- -----------------------------------------
Total Renal Care Holdings ** 68
- -----------------------------------------
Sylvan Learning Systems 49
- -----------------------------------------
Acxiom ** 43
- -----------------------------------------
Apollo Group 38
- -----------------------------------------
SunGard Data Systems 38
- -----------------------------------------
Freddie Mac 34
- -----------------------------------------
Associates First Capital 33
- -----------------------------------------
Galileo International 30
- -----------------------------------------
Total -483(cent)
* Position added
** Position eliminated
*** Acquired by another company
================================================================================
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
PERFORMANCE COMPARISON
- ----------------------
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
*********************************************************************
SEC Chart for New America Growth Fund
showing: New America Growth Fund
$47,336; S&P 500 Index $53,278 and Lipper
Growth Funds Average $48,078
*********************************************************************
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- ------------------------------------
This table shows how the 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 12/31/99 1 Year 3 Years 5 Years 10 Years
- ---------------------- ------ ------- ------- --------
New America Growth Fund 12.76% 17.20% 22.76% 16.82%
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
Year
Ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
-------- -------- -------- -------- --------
NET ASSET VALUE
Beginning of period $ 47.79 $ 44.19 $ 38.37 $ 34.91 $ 25.42
- -------------------------------------------------------------------------------
Investment activities
Net investment income (loss) (0.20) (0.21) (0.13) (0.13) (0.12)
Net realized and
unrealized gain (loss) 5.87 7.65 8.15 7.08 11.36
- -------------------------------------------------------------------------------
Total from
investment activities 5.67 7.44 8.02 6.95 11.24
- -------------------------------------------------------------------------------
Distributions
Net realized gain (5.40) (3.84) (2.20) (3.49) (1.75)
- -------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 48.06 $ 47.79 $ 44.19 $ 38.37 $ 34.91
Ratios/Supplemental=Data=======================================================
Total return* 12.76% 17.89% 21.10% 20.01% 44.31%
- -------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.94% 0.95% 0.96% 1.01% 1.07%
- -------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (0.43)% (0.49)% (0.34)% (0.39)% (0.46)%
- -------------------------------------------------------------------------------
Portfolio turnover rate 39.7% 45.6% 43.2% 36.7% 56.2%
- -------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 2,064 $ 2,064 $ 1,758 $ 1,440 $ 1,028
- -------------------------------------------------------------------------------
* 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.
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
- ------------------------------------- December 31, 1999
STATEMENT OF NET ASSETS
- -----------------------
Shares Value
In thousands
COMMON STOCKS 91.5%
FINANCIAL==10.0%=========================================================
Bank and Trust 1.4%
FirStar 600,000 $ 12,675
- -------------------------------------------------------------------------
Wells Fargo 400,000 16,175
- -------------------------------------------------------------------------
28,850
- -------------------------------------------------------------------------
Investment Services 4.9%
Franklin Resources 467,900 15,002
- -------------------------------------------------------------------------
Goldman Sachs Group 100,000 9,419
- -------------------------------------------------------------------------
Morgan Stanley Dean Witter 300,000 42,825
- -------------------------------------------------------------------------
Waddell & Reed Financial (Class A) 325,000 8,816
- -------------------------------------------------------------------------
Waddell & Reed Financial (Class B) 1,000,000 25,125
- -------------------------------------------------------------------------
101,187
- -------------------------------------------------------------------------
Other Financial Services 3.7%
Associates First Capital (Class A) 714,900 19,615
- -------------------------------------------------------------------------
Fannie Mae 300,000 18,731
- -------------------------------------------------------------------------
Freddie Mac 800,000 37,650
- -------------------------------------------------------------------------
75,996
- -------------------------------------------------------------------------
Total Financial 206,033
- -------------------------------------------------------------------------
<PAGE>
CONSUMER=SERVICES==24.0%=================================================
Retailing/General Merchandisers 6.4%
Costco Wholesale * 450,000 41,048
- -------------------------------------------------------------------------
Family Dollar Stores 1,800,000 29,363
- -------------------------------------------------------------------------
Kroger * 750,000 14,156
- -------------------------------------------------------------------------
Safeway * 700,000 24,894
- -------------------------------------------------------------------------
TJX 1,100,000 22,481
- -------------------------------------------------------------------------
131,942
- -------------------------------------------------------------------------
Entertainment and Leisure 3.6%
Extended Stay America * 2,000,000 15,250
- -------------------------------------------------------------------------
Premier Parks * 1,125,000 32,484
- -------------------------------------------------------------------------
SFX Entertainment (Class A) * 750,000 27,141
- -------------------------------------------------------------------------
74,875
- -------------------------------------------------------------------------
Personal Services 4.4%
Apollo Group (Class A) * 1,607,100 $ 32,192
- -------------------------------------------------------------------------
Avis Rent A Car * 1,000,000 25,562
- -------------------------------------------------------------------------
Cendant * 600,000 15,938
- -------------------------------------------------------------------------
Sylvan Learning Systems * 1,250,000 16,406
- -------------------------------------------------------------------------
90,098
- -------------------------------------------------------------------------
Restaurants 1.6%
Outback Steakhouse * 1,250,000 32,500
- -------------------------------------------------------------------------
32,500
- -------------------------------------------------------------------------
Retailing/Specialty Merchandisers 8.0%
Circuit City Stores 1,200,000 54,075
- -------------------------------------------------------------------------
CVS 550,000 21,966
- -------------------------------------------------------------------------
Home Depot 975,000 66,848
- -------------------------------------------------------------------------
Office Depot * 2,112,500 23,106
- -------------------------------------------------------------------------
165,995
- -------------------------------------------------------------------------
Total Consumer Services 495,410
- -------------------------------------------------------------------------
<PAGE>
BUSINESS=SERVICES==24.6%=================================================
Distribution Services 1.6%
U.S. Foodservice * 2,000,000 33,500
- -------------------------------------------------------------------------
33,500
- -------------------------------------------------------------------------
Computer Services 13.6%
Affiliated Computer Services (Class A) * 1,000,000 46,000
- -------------------------------------------------------------------------
BISYS Group * 350,000 22,816
- -------------------------------------------------------------------------
Ceridian * 2,013,000 43,405
- -------------------------------------------------------------------------
Concord EFS * 417,100 10,727
- -------------------------------------------------------------------------
First Data 875,000 43,149
- -------------------------------------------------------------------------
Galileo International 900,000 26,944
- -------------------------------------------------------------------------
NOVA * 1,250,000 39,453
- -------------------------------------------------------------------------
Paychex 562,500 22,482
- -------------------------------------------------------------------------
SunGard Data Systems * 1,098,400 26,087
- -------------------------------------------------------------------------
281,063
- -------------------------------------------------------------------------
Energy Services 1.9%
Schlumberger 400,000 22,500
- -------------------------------------------------------------------------
Smith International * 300,000 14,906
- -------------------------------------------------------------------------
Transocean Sedco Forex 77,440 2,609
- -------------------------------------------------------------------------
40,015
- -------------------------------------------------------------------------
Marketing Services 4.2%
ADVO * 775,000 $ 18,406
- -------------------------------------------------------------------------
Catalina Marketing * 460,000 53,245
- -------------------------------------------------------------------------
IMS Health 525,000 14,273
- -------------------------------------------------------------------------
85,924
- -------------------------------------------------------------------------
Other Business Services 3.3%
Modis Professional Services * 1,500,000 21,375
- -------------------------------------------------------------------------
Republic Services (Class A) * 1,600,000 23,000
- -------------------------------------------------------------------------
Viad 850,000 23,694
- -------------------------------------------------------------------------
68,069
- -------------------------------------------------------------------------
Total Business Services 508,571
- -------------------------------------------------------------------------
<PAGE>
HEALTH=CARE==1.9%========================================================
Health Care Services 1.6%
Omnicare 1,750,000 21,000
- -------------------------------------------------------------------------
Wellpoint Health Networks * 200,000 13,188
- -------------------------------------------------------------------------
34,188
- -------------------------------------------------------------------------
Pharmaceuticals 0.3%
Warner-Lambert 75,000 6,171
- -------------------------------------------------------------------------
6,171
- -------------------------------------------------------------------------
Total Health Care 40,359
- -------------------------------------------------------------------------
MEDIA=SERVICES==26.4%====================================================
Broadcasting 16.9%
AMFM * 1,000,000 78,250
- -------------------------------------------------------------------------
AT&T Liberty Media Group * 1,500,000 85,125
- -------------------------------------------------------------------------
Charter Communications (Class A) * 1,000,000 21,875
- -------------------------------------------------------------------------
Comcast (Class A Special) 680,000 34,361
- -------------------------------------------------------------------------
Cox Communications (Class A) * 550,000 28,325
- -------------------------------------------------------------------------
Fox Entertainment Group (Class A) * 1,150,000 28,678
- -------------------------------------------------------------------------
Infinity Broadcasting (Class A) * 2,000,000 72,375
- -------------------------------------------------------------------------
348,989
- -------------------------------------------------------------------------
Telecommunication Services 9.5%
MCI WorldCom * 900,000 47,728
- -------------------------------------------------------------------------
Vodafone Airtouch ADR 550,000 27,225
- -------------------------------------------------------------------------
VoiceStream Wireless * 450,000 $ 63,942
- -------------------------------------------------------------------------
Western Wireless * 850,000 56,685
- -------------------------------------------------------------------------
195,580
- -------------------------------------------------------------------------
Total Media Services 544,569
- -------------------------------------------------------------------------
<PAGE>
TECHNOLOGY=SERVICES==4.1%================================================
Software & Service 2.4%
Computer Associates 100,000 6,994
- -------------------------------------------------------------------------
Metamor Worldwide * 500,000 14,594
- -------------------------------------------------------------------------
Microsoft * 75,000 8,754
- -------------------------------------------------------------------------
Unisys * 600,000 19,162
- -------------------------------------------------------------------------
49,504
- -------------------------------------------------------------------------
E-Commerce 0.8%
America Online * 45,000 3,395
- -------------------------------------------------------------------------
CMGI * 15,000 4,153
- -------------------------------------------------------------------------
e-Bay * 15,000 1,878
- -------------------------------------------------------------------------
Yahoo! * 15,000 6,491
- -------------------------------------------------------------------------
15,917
- -------------------------------------------------------------------------
Computer 0.4%
Dell Computer * 150,000 7,645
- -------------------------------------------------------------------------
7,645
- -------------------------------------------------------------------------
Communication Equipment 0.5%
3Com * 250,000 11,742
- -------------------------------------------------------------------------
11,742
- -------------------------------------------------------------------------
Total Technology Services 84,808
- -------------------------------------------------------------------------
Total Miscellaneous Common Stocks 0.5% 9,659
- -------------------------------------------------------------------------
Total Common Stocks (Cost $1,142,441) 1,889,409
=========================================================================
<PAGE>
SHORT-TERM=INVESTMENTS==8.7%=============================================
Money Market Funds 8.7%
Reserve Investment Fund, 6.16% # 179,035,356 179,035
- -------------------------------------------------------------------------
Total Short-Term Investments (Cost $179,035) 179,035
=Total=Investments=in=Securities=========================================
100.2% of Net Assets (Cost $1,321,476) $ 2,068,444
Other Assets Less Liabilities (4,934)
NET ASSETS $ 2,063,510
Net Assets Consist of:
Accumulated net realized gain/loss -
net of distributions $ 125,259
Net unrealized gain (loss) 746,967
Paid-in-capital applicable to 42,936,685
shares of no par value capital stock
outstanding; unlimited shares authorized 1,191,284
NET ASSETS $ 2,063,510
NET ASSET VALUE PER SHARE $ 48.06
# Seven-day yield
* Non-income producing
ADR American Depository Receipt
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
STATEMENT OF OPERATIONS
- ----------------------- In thousands
Year
Ended
12/31/99
--------
Investment Income (Loss)
Income
Dividend $ 6,511
Interest 3,823
- ----------------------------------------------------------------------
Total income 10,334
- ----------------------------------------------------------------------
Expenses
Investment management 13,511
Shareholder servicing 5,007
Prospectus and shareholder reports 257
Custody and accounting 164
Registration 72
Legal and audit 15
Trustees 10
Miscellaneous 13
<PAGE>
- ----------------------------------------------------------------------
Total expenses 19,049
Expenses paid indirectly (23)
- ----------------------------------------------------------------------
Net expenses 19,026
- ----------------------------------------------------------------------
Net investment income (loss) (8,692)
- ----------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on securities 306,896
Change in net unrealized gain or loss on securities (58,606)
- ----------------------------------------------------------------------
Net realized and unrealized gain (loss) 248,290
- ----------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 239,598
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------
In thousands
Year
Ended
12/31/99 12/31/98
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ (8,692) $ (9,205)
Net realized gain (loss) 306,896 146,088
Change in net unrealized gain or loss (58,606) 169,824
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 239,598 306,707
- -------------------------------------------------------------------------------
Distributions to shareholders
Net realized gain (210,030) (153,725)
- -------------------------------------------------------------------------------
Capital share transactions *
Shares sold 343,462 553,381
Distributions reinvested 204,229 149,481
Shares redeemed (578,197) (549,281)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (30,506) 153,581
- -------------------------------------------------------------------------------
<PAGE>
Net Assets
Increase (decrease) during period (938) 306,563
Beginning of period 2,064,448 1,757,885
- -------------------------------------------------------------------------------
End of period $2,063,510 $2,064,448
===============================================================================
*Share information
Shares sold 7,061 11,747
Distributions reinvested 4,585 3,508
Shares redeemed (11,908) (11,832)
- -------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (262) 3,423
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE NEW AMERICA GROWTH FUND
- ------------------------------------- December 31, 1999
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
- ----------------------------------------
T. Rowe Price New America Growth Fund (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company and commenced operations on September 30, 1985.
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 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
Trustees, 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.
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 Trustees.
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.
<PAGE>
NOTE 2 - INVESTMENT TRANSACTIONS
- --------------------------------
Purchases and sales of portfolio securities, other than short-term
securities, aggregated $777,241,000 and $1,196,458,000, respectively, for the
year ended December 31, 1999.
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.
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 December 31, 1999. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
********************************************************************************
Undistributed net investment income $ 8,692,000
Undistributed net realized gain (8,692,000)
********************************************************************************
At December 31, 1999, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$1,321,476,000. Net unrealized gain aggregated $746,968,000 at period-end, of
which $835,488,000 related to appreciate d investments and $88,520,000 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 $1,126,000 was payable at December 31, 1999. The fee is computed daily
and paid monthly, and consists of an individual fund fee equal to 0.35% 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
December 31, 1999, 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.
<PAGE>
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 $4,337,000 for the year ended
December 31, 1999, of which $470,000 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 December 31, 1999, totaled
$3,822,000 and are reflected as interest income in the accompanying State ment
of Operations.
================================================================================
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- ---------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
T. ROWE PRICE NEW AMERICA GROWTH FUND
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 New America Growth Fund (the "Fund") at December 31, 1999, 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
December 31, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 20, 2000
================================================================================
<PAGE>
T. ROWE PRICE NEW AMERICA GROWTH FUND
- -------------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 12/31/99
- -----------------------------------------------------------
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.
The fund's distributions to shareholders included $210,030,000 from
long-term capital gains, subject to the 20% rate gains category.
For corporate shareholders, $4,914,000 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 Shareholder service representatives are available from 8 a.m.
to 10 p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on
weekends. Call 1-800-225-5132 to speak directly with a representative
who will be able to assist you with your accounts.
IN PERSON Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. You
can also drop off applications or obtain prospectuses and other
literature at these centers.
AUTOMATED 24-HOUR SERVICES
TELE*ACCESS (Registration Mark) Call 1-800-638-2587 to obtain
information such as account balance, date and amount of your last
transaction, latest dividend payment, fund prices, and yields.
Additionally, you have the ability to request prospectuses,
statements, and account and tax forms; to reorder checks; and to
initiate purchase, redemption, and exchange orders for identically
registered accounts.
INTERNET. T. ROWE PRICE WEB SITE: WWW.TROWEPRICE.COM All the
information and services available on Tele*Access are available on our
Web site, including transactions in your fund and brokerage accounts
(with preauthorized access).
<PAGE>
ACCOUNT SERVICES
CHECKING Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield and Emerging Markets Bond
Funds).
AUTOMATIC INVESTING Build your account over time by investing directly
from your bank account or paycheck with Automatic Asset Builder.
Additionally, Automatic Exchange enables you to set up systematic
investments from one fund account into another, such as from a money
fund into a stock fund. A $50 minimum makes it easy to get started.
AUTOMATIC WITHDRAWAL If you need money from your fund account on a
regular basis, you can establish scheduled, automatic redemptions.
DIVIDEND AND CAPITAL GAINS PAYMENT OPTIONS Reinvest all or some of
your distributions, or take them in cash. We give you maximum
flexibility and convenience.
BROKERAGE SERVICES*
INVESTMENTS AVAILABLE You can trade stocks, bonds, options, precious
metals, and other securities at a savings over full-service commission
rates.**
TO OPEN AN ACCOUNT Call a shareholder service representative for more
information.
INVESTMENT INFORMATION
COMBINED STATEMENT A comprehensive overview of your T. Rowe Price
accounts is provided. The summary page gives you earnings by tax
category, provides total portfolio value, and lists your investments
by type. Detail pages itemize account transactions.
SHAREHOLDER REPORTS Portfolio managers review the performance of the
funds in plain language and discuss T. Rowe Price's economic outlook.
T. ROWE PRICE REPORT This is a quarterly newsletter with relevant
articles on market trends, personal financial planning, and T. Rowe
Price's economic perspective.
<PAGE>
PERFORMANCE UPDATE This quarterly report reviews recent market
developments and provides comprehensive performance information for
every T. Rowe Price fund.
INSIGHTS These are reports on mutual fund tax issues, investment
strategies, investment fundamentals, and financial markets.
DETAILED INVESTMENT GUIDES Our Asset Mix Worksheet, College Planning
Kit, Diversifying Overseas: A Guide to International Investing,
Retirees Financial Guide, and Retirement Planning Kit (also available
on disk or CD-ROM for PC use) can help you determine and reach your
investment goals.
* 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
<PAGE>
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
<PAGE>
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.
================================================================================
<PAGE>
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 MANAGER [SM] 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
<PAGE>
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.
<PAGE>
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.
================================================================================
<PAGE>
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
<PAGE>
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 Investment Services, Inc., Distributor. F60-050 12/31/99
