SemiAnnual Report
T. Rowe Price
Georgia Tax-Free Bond Fund
August 31, 1995
For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus of the T. Rowe Price Georgia
Tax-Free Bond Fund.
Invest With Confidence(registered trademark)
T. Rowe Price
GAB
Fellow Shareholders
While stocks have captured most of the headlines so far this year, bonds also
delivered strong returns for investors. Bond prices rose and yields fell
sharply, although long-term tax-exempt issues trailed their taxable
equivalents. Despite the Federal Reserve's ease in July, municipal and taxable
bonds gave back some of their gains after revised economic data indicated the
economy was not slowing to the extent originally believed.
Market Environment
Municipals turned in their strongest performance this year in January and
February, when the yield on 30-year AAA general obligation bonds fell to 5.95%
from 6.65%. However, during the six months covered in this report, that yield
declined by only another 10 basis points to 5.85% compared with an
80-basis-point drop in 30-year Treasury bonds.
The tax-exempt market's lagging performance relative to Treasuries can
be attributed largely to investor concerns about tax reform proposals in
Washington (see sidebar on page 2). One effect of this key issue was the
divergence between intermediate- and long-term tax-exempt bonds. During the
six months ended August 31, bonds maturing in 5 to 10 years provided higher
total returns than long-term bonds. The municipal yield curve steepened
significantly (short-term yields fell and long-term yields were steady),
because investors demonstrated their reluctance to assume the additional risk
of buying bonds with long maturities until tax uncertainties are cleared up.
Georgia municipal bonds followed national market trends in general, but
the new issue supply was lighter. Georgia issuers sold 42% less debt during
the first eight months of this year than in the same period last year,
compared with a 22% drop nationally. The summer's supply was dominated by two
state general obligation issues and a large borrowing by the Cobb County
School District. Because of this scarcity
Graph 1 - Georgia Bond Yield Index
Source: T. Rowe Price Associates, Inc.
of supply, Georgia bonds have traded at yields below national levels, and
there is little prospect of relief in the near term.
Georgia's economy remained one of the fastest growing in the nation, as
ripple effects from the upcoming 1996 Olympics create numerous jobs. The
strong economy has translated into healthy state and local finances. As
evidence, Moody's recently upgraded Cobb County's credit rating to Aaa, and
Standard & Poor's revised the outlook for Georgia's credit rating (now AA+) to
"positive."
Strategy and Performance Review
Faced with a choppy interest rate environment during the past six months as
well as a tight supply of Georgia bonds, we sought to maintain a neutral to
slightly aggressive duration posture through a combination of higher-coupon
bonds that provide steady income and lower-coupon, discount issues that offer
appreciation potential. Cash was held to a minimum. The fund's duration
fluctuated around 8 years, ending the period at 7.7 years. (A duration of 7.7
means that the fund's price could be expected to rise or fall approximately
7.7% for each one percentage point fall or rise in interest rate levels.)
One of our goals was to improve yield, but with most new issues either
insured or highly rated, opportunities were few. The option of purchasing some
lower-rated issues became less attractive during the period as their yield
advantage over high-quality issues narrowed - a typical development when
supply is light. We put new cash to work primarily in high-quality, long-term
bonds, improving your fund's diversification in the process.
Although the fund's return was modest for the quarter, results for
longer periods were solid. The 4.4% return for the past six months brought the
fund's year-to-date gain to 10.9%. Your fund performed slightly above its peer
group for the quarter and slightly below it for the six-month period, as shown
below.
Performance Comparison
Periods Ended 8/31/95
_____________________
3 Months 6 Months
_________ _________
Georgia Tax-Free Bond Fund 0.51% 4.40%
Lipper Georgia Municipal
Debt Fund Average 0.43 4.66
Outlook
For the past three months, the 30-year Treasury bond yield has hovered in a
range between 6.5% and 7%. While recent economic growth has slowed
significantly from last year's rapid pace, it may not have slowed to the
extent the Federal Reserve believed when it loosened monetary policy in July.
Second quarter GDP, initially reported to have increased by a paltry 0.5%
annualized rate, was subsequently revised to 1.1%. Growth in the third and
fourth quarters should be closer to the long-term trend of 2.5%.
Until the economy shows clearer signs of veering from moderate to either
slower or more rapid growth, long bond yields are likely to remain close to
current levels. Despite the emerging picture of a rebound in growth, the
combination of benign inflation and the growing sense of fiscal responsibility
in Washington may reassure the bond market.
The municipal market is also likely to trade in its range of the past
six months, with long-term rates fluctuating between 5.5% and 6.0%. Unless tax
reform proposals disappear altogether, we do not expect municipal bonds to
outperform Treasuries, and investors may continue to prefer tax-exempt bonds
with short maturities. Overall, we anticipate that economic developments will
have a greater impact than tax reform proposals on the municipal market.
Given the strength of the Georgia economy, strong credit ratings for
many bonds, and the probability of sparse new issue supply, we believe the
fundamentals for Georgia municipal bonds remain sound. We will continue to
look for opportunities to strengthen yield and earn attractive overall
returns.
Respectfully submitted,
Mary J. Miller
Chairman of the Investment Advisory Committee
September 20, 1995
Municipal Bonds Hindered by Tax Reform Proposals
In recent months, proposals for tax reform in Washington have trimmed returns
on municipal bonds. Most of these proposals are still in rudimentary form, but
they center on the possibility of a flat tax with a low income tax rate and
the elimination of taxes on the income from taxable securities. As a result,
investors demanded higher yields on long-term tax-exempt issues relative to
Treasuries to compensate for the risk that new legislation might reduce the
tax advantages of municipals.Tax-exempt securities with short maturities have
performed better, because they are less vulnerable to any changes in the tax
laws.
Tax reform discussions could continue to affect the municipal market
adversely, but we believe the likelihood of a genuine flat tax is slim. In our
experience, the market often overreacts to proposed changes in the tax code,
creating periods of market weakness we view as buying opportunities.
Accordingly, we have taken advantage of the demand for short-term tax-exempt
bonds and have purchased long-term bonds when their yields have approached
those of long-term Treasury bonds.
Portfolio Highlights
Key Statistics
Periods Ended
Dividend Yield 8/31/95
___________________________ _______________
3 Months* 5.16%
6 Months* 5.24
SEC 30-Day Yield 5.15
Dividend Per Share
___________________________
3 Months $0.13
6 Months 0.26
Change in Price Per Share
___________________________
3 Months (From $10.18 to $10.10) $-0.08
6 Months (From $9.93 to $10.10) 0.17
Weighted Average Quality** 2.4
Weighted Average Maturity 17.7 years
Weighted Average Effective Duration 7.7 years
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the average daily net asset values per share for the same
period.
** On a T. Rowe Price scale of 1 to 10, with Grade 1 representing highest
quality.
Sector Diversification
Percent of Net Assets
8/31/95
_________________
Nuclear Revenue 16%
Water and Sewer Revenue 13
General Obligation - Local 12
Hospital Revenue 11
Housing Finance Revenue 11
Dedicated Tax Revenue 8
Lease Revenue 8
Air and Sea Transportation Revenue 7
Electric Revenue 6
Pooled Loan Revenue 4
Educational Revenue 3
General Obligation - State 3
Industrial and Pollution Control Revenue 2
Miscellaneous Revenue 2
Other Assets Less Liabilities -6
Average Annual Compound Total Return
Periods ended August 31, 1995
Since
Inception
1 Year (3/31/93)
_______ ________
8.05% 5.88%
Note: For the above periods ended 6/30/95, the fund's returns were 8.54% and
5.53%, respectively.
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
Statement of Net Assets
T. Rowe Price Georgia Tax-Free Bond Fund / August 31, 1995 (Unaudited)
(amounts in thousands)
Amount Value
___________ ___________
GEORGIA - 100.4%
Albany Dougherty County Hosp., Phoebe
Putney Memorial Hosp.,(AMBAC Insured),
5.00%, 9/1/20. . . . . . . . . . . . . . . . . . . .$ 1,000 $ 878
Atlanta, Airport Fac., 6.30%, 1/1/07 . . . . . . . . 1,270 1,279
(FGIC Insured), 6.50%, 1/1/13 *. . . . . . . . . . . 500 521
Burke County PCR, Georgia Power,
VRDN (Currently 3.50%) . . . . . . . . . . . . . . . 300 300
Oglethorpe Power, (MBIA Insured),
7.80%, 1/1/08 . . . . . . . . . . . . . . . . . . 560 659
Chatham County School Dist., GO, 6.25%,
8/1/16 . . . . . . . . . . . . . . . . . . . . . . . 625 643
(MBIA Insured), 6.75%, 8/1/18. . . . . . . . . 750 809
DeKalb County, Association of County
Commissioners of Georgia Leasing Program,
COP, (FGIC Insured), 6.80%, 12/1/15. . . . . . . . . 1,000 1,090
Fulton County Hosp. Auth., Northside Hosp.,
RAC, (MBIA Insured), 5.375%, 10/1/12 . . . . . . . . 1,000 954
Fulton County Housing Auth., Single Family,
(GNMA Guaranteed), 6.55%, 3/1/18 * . . . . . . . . . 1,000 1,012
Fulton County Water & Sewage, (FGIC
Insured), 6.25%, 1/1/09. . . . . . . . . . . . . . . 1,000 1,082
6.375%, 1/1/14 . . . . . . . . . . . . . . . . 500 537
Gainesville & Hall Counties Hosp. Auth.,
Northeast Georgia Healthcare, RAC,
(MBIA Insured), 5.75%, 10/1/17 . . . . . . . . . . . 1,200 1,176
Gainesville Water & Sewage, (FGIC Insured),
6.00%, 11/15/12. . . . . . . . . . . . . . . . . . . 1,000 1,040
Georgia, GO, 3.25%, 7/1/14 . . . . . . . . . . . . . 1,000 722
Georgia Hosp. Equipment Fin. Auth., Pooled
Hosp. Loan, VRDN (Currently 3.55%) . . . . . . . . . 1,058 1,058
Pooled Hosp. Loan, (MBIA Insured),
VRDN (Currently 3.55%) . . . . . . . . . . . . 100 100
Georgia Housing & Fin. Auth., Single
Family Mortgage, 6.65%, 12/1/20 *. . . . . . . . . . 500 509
(FHA Guaranteed), 6.50%, 12/1/17 * . . . . . . 1,000 1,011
6.60%, 12/1/23 * . . . . . . . . . . . . . . . 450 456
Georgia Municipal Gas Auth., 6.00%, 7/1/04 . . . . . 500 519
Gwinnett County Water & Sewage,
Zero Coupon, 8/1/10. . . . . . . . . . . . . . . . . 1,000 435
Metropolitan Atlanta Rapid Transit Auth.,
Sales Tax, (MBIA Insured), 6.90%, 7/1/20 . . . . . . 1,000 1,092
Monroe County, PCR, Gulf Power,
VRDN (Currently 3.60%) . . . . . . . . . . . . . . . 1,000 1,000
Municipal Electric Auth. of Georgia,
6.40%, 1/1/09. . . . . . . . . . . . . . . . . . . . 1,000 1,068
(AMBAC Insured), 7.25%, 1/1/24 . . . . . . . . 1,000 1,197
Paulding County School Dist., GO,
(MBIA Insured), 6.00%, 2/1/13. . . . . . . . . . . . 1,000 1,035
Peach County School Dist., GO,
(MBIA Insured), 6.50%, 2/1/07. . . . . . . . . . . . 300 335
Putnam County Dev. Auth., PCR, Georgia Power,
(FGIC Insured), 7.25%, 7/1/21. . . . . . . . . . . . 1,000 1,048
Rockdale County School Dist., GO,
6.50%, 1/1/09. . . . . . . . . . . . . . . . . . . . 1,000 1,077
Rockdale IDA, Solid Waste Disposal,
7.40%, 1/1/16 *. . . . . . . . . . . . . . . . . . . 500 502
Savannah Economic Dev. Auth., Union Camp Corp.,
6.15%, 3/1/17. . . . . . . . . . . . . . . . . . . . 500 511
Smyrna Downtown Dev. Auth., (MBIA Insured),
6.70%, 2/1/20. . . . . . . . . . . . . . . . . . . . 1,000 1,068
PUERTO RICO - 5.9%
Puerto Rico Electric Power Auth.,
6.00%, 7/1/15. . . . . . . . . . . . . . . . . . . . 500 495
Puerto Rico Highway & Transportation Auth.,
(FSA Insured), 6.625%, 7/1/12. . . . . . . . . . . . 1,000 1,069
Value
______
Total Investments in Securities -
106.3% of Net Assets (Cost $27,313) . . . . . . . . $28,287
Other Assets Less Liabilities . . . . . . . . . . . (1,676)
Net Assets Consist of: Value
_________
Accumulated net investment income -
net of distributions . . . . . . . . . . . . . . . . $ 1
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . . . . . (1,391)
Net unrealized gain (loss) . . . . . . . . . . . . . 974
Paid-in-capital applicable to 2,634,183
no par value shares of beneficial interest
outstanding; unlimited number of
shares authorized. . . . . . . . . . . . . . . . . . 27,027
_________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . $26,611
. . . . . . . . . . . . . . . . . . . . . . . __________
. . . . . . . . . . . . . . . . . . . . . . . __________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . $10.10
______
______
* Interest subject to alternative minimum tax
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FSA Financial Security Assurance Corp.
GNMA Government National Mortgage Association
GO General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
RAC Revenue Anticipation Certificate
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price Georgia Tax-Free Bond Fund / Six Months Ended August 31, 1995
(Unaudited)
(in thousands)
INVESTMENT INCOME
Interest Income . . . . . . . . . . . . . . . . .$ 741
___________
Expenses
Custody and accounting. . . . . . . . . . . . . . 43
Shareholder servicing . . . . . . . . . . . . . . 28
Legal and audit . . . . . . . . . . . . . . . . . 6
Trustees. . . . . . . . . . . . . . . . . . . . . 3
Prospectus and shareholder reports. . . . . . . . 2
Miscellaneous . . . . . . . . . . . . . . . . . . 1
___________
Total expenses. . . . . . . . . . . . . . . . . . 83
___________
Net investment income. . . . . . . . . . . . . . . . 658
___________
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities. . . . . . . . . . . . . . . . . . . . 87
Futures . . . . . . . . . . . . . . . . . . . . . (54)
Options . . . . . . . . . . . . . . . . . . . . . (6)
___________
Net realized gain (loss). . . . . . . . . . . . . 27
Change in net unrealized gain or
loss on securities. . . . . . . . . . . . . . . . 387
___________
Net realized and unrealized gain (loss). . . . . . . 414
___________
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS. . . . . . . . . . . . . . . . . . .$ 1,072
___________
___________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price Georgia Tax-Free Bond Fund (Unaudited)
(in thousands)
Six Months Year Ended
Ended Aug. Feb.28,
31, 1995 1995
__________ __________
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income . . . . . . . . . . $ 658 $ 1,109
Net realized gain (loss) . . . . . . . . . 27 (1,415)
Change in net unrealized
gain or loss . . . . . . . . . . . . . . . 387 599
________ _________
Increase (decrease) in
net assets from operations . . . . . . . . . . 1,072 293
_________ _________
Distributions to shareholders
Net investment income. . . . . . . . . . . (658) (1,109)
Net realized gain. . . . . . . . . . . . . - (102)
_________ _________
Decrease in net assets from
distributions. . . . . . . . . . . . . . . (658) (1,211)
_________ _________
Capital share transactions*
Shares sold. . . . . . . . . . . . . . . . 5,064 10,668
Distributions reinvested . . . . . . . . . 496 1,002
Shares redeemed. . . . . . . . . . . . . . (2,701) (10,028)
_________ _________
Increase (decrease) in net assets
from capital share transactions. . . . . . 2,859 1,642
_________ _________
Increase (decrease) in net assets. . . . . . . 3,273 724
NET ASSETS
Beginning of period. . . . . . . . . . . . . . 23,338 22,614
_________ _________
End of period. . . . . . . . . . . . . . . . . $ 26,611 $ 23,338
_________ _________
_________ _________
*Share information
Shares sold. . . . . . . . . . . . . . . . 504 1,099
Distributions reinvested . . . . . . . . . 50 103
Shares redeemed. . . . . . . . . . . . . . (270) (1,032)
_________ _________
Increase (decrease) in
shares outstanding . . . . . . . . . . . . 284 170
_________ _________
_________ _________
The accompanying notes are an integral part of these financial statements.
Notes To Financial Statements
T. Rowe Price Georgia Tax-Free Bond Fund / August 31, 1995 (Unaudited)
Note 1 - Significant Accounting Policies
T. Rowe Price State Tax-Free Income Trust (the Trust) is registered under the
Investment Company Act of 1940. The Georgia Tax-Free Bond Fund (the fund), a
non-diversified , open-end management investment company, is one of the
portfolios established by the Trust.
A) Valuation - Debt securities are generally traded in the over-the-counter
market. Investments in securities with remaining 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
remaining 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.
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.
B) Premiums and Discounts - Premiums and original issue discounts on municipal
securities are amortized for both financial reporting and tax purposes. Market
discounts are recognized upon disposition of the security as gain or loss for
financial reporting purposes and as ordinary income for tax purposes.
C) 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 an identified cost basis. Distributions to shareholders are
recorded by the fund on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
federal income tax regulations and may differ from those determined in
accordance with generally accepted accounting principles.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $14,187,000 and $11,091,000, respectively, for the six months ended
August 31, 1995.
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of
its income. The fund has unused realized capital loss carryforwards for
federal income tax purposes of $1,120,000, which expire in 2003. The fund
intends to retain gains realized in future periods that may be offset by
available capital loss carryforwards.
At August 31, 1995, the aggregate cost of investments for federal income
tax and financial reporting purposes was $27,313,000 and net unrealized gain
aggregated $974,000, of which $983,000 related to appreciated investments and
$9,000 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. The fee is computed daily and paid monthly, and consists of an Individual
Fund Fee equal to 0.10% of average daily net assets and a Group Fee. The Group
Fee is based on the combined assets of certain mutual funds sponsored by the
Manager or Rowe-Price Fleming International, Inc. (the Group). The Group Fee
rate ranges from 0.48% for the first $1 billion of assets to 0.31% for assets
in excess of $34 billion. At August 31, 1995, and for the six months then
ended, the effective annual Group Fee rate was 0.34%. The fund pays a pro rata
share of the Group Fee based on the ratio of its net assets to those of the
Group.
Under the terms of the investment management agreement, the Manager is
required to bear any expenses through February 28, 1997, which would cause the
fund's ratio of expenses to average net assets to exceed 0.65%. Thereafter,
through February 28, 1999, the fund is required to reimburse the Manager for
these expenses, provided that average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing the fund's ratio
of expenses to average net assets to exceed 0.65%. Pursuant to this agreement,
$56,000 of management fees were not accrued by the fund for the six months
ended August 31, 1995. Additionally, $285,000 of unaccrued management fees and
expenses related to a previous expense limitation are subject to reimbursement
through February 28, 1997.
In addition, the fund has entered into agreements with the Manager and a
wholly owned subsidiary of the Manager, pursuant to which the fund receives
certain other services. The Manager computes the daily share price and
maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. The fund incurred expenses pursuant to
these related party agreements totaling approximately $54,000 for the six
months ended August 31, 1995, of which $11,000 was payable at period-end.
Financial Highlights
T. Rowe Price Georgia Tax-Free Bond Fund (Unaudited)
For a share outstanding throughout each period
_______________________________________________
March 31, 1993
Six Months (Commencement of
Ended Year Ended Operations)
August 31, February 28, to February 28,
1995 1995 1994
________________________________________________
NET ASSET VALUE,
BEGINNING OF PERIOD. . . . . . . . .$9.93 $10.37 $10.00
______ ______ ______
Investment Activities
Net investment income. . . . . . .0.26* 0.51* 0.43*
Net realized and
unrealized gain (loss) . . . . . .0.17 (0.39) 0.41
______ ______ ______
Total from
Investment Activities. . . . . . . .0.43 0.12 0.84
______ ______ ______
Distributions
Net investment income. . . . . . .(0.26) (0.51) (0.43)
Net realized gain. . . . . . . . . - (0.05) (0.04)
______ ______ ______
Total Distributions. . . . . . . . .(0.26) (0.56) (0.47)
______ ______ ______
NET ASSET VALUE,
END OF PERIOD. . . . . . . . . . . .$10.10 $9.93 $10.37
______ ______ ______
______ ______ ______
RATIOS / SUPPLEMENTAL DATA
Total Return . . . . . . . . . . . .4.40% 1.42% 8.45%
Ratio of Expenses to
Average Net Assets . . . . . . . . .0.65%!* 0.65%* 0.65%!*
Ratio of Net Investment
Income to Average
Net Assets . . . . . . . . . . . . .5.19%! 5.26% 4.48%!
Portfolio Turnover Rate. . . . . . .92.5%! 170.2% 154.8%!
Net Assets, End of
Period (in thousands). . . . . . . .$26,611 $23,338 $22,614
! Annualized.
* Excludes expenses in excess of a 0.65% voluntary expense limitation in
effect through February 28, 1997.
Shareholder Services
To help shareholders monitor their current investments and make decisions that
accurately reflect their financial goals, T. Rowe Price offers a wide variety
of information and services -- at no extra cost.
Knowledgeable Service Representatives
By Phone -- Shareholder service representatives are available from 8:00 a.m.
to 10:00 p.m., Monday - Friday, and weekends from 9:00 a.m. to 5:00 p.m ET.
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. While there,
you can drop off applications or obtain prospectuses and other literature.
Automated 24-Hour Services
Tele*Access(Registered Trademark) (1-800-638-2587) provides information
such as account balance, date and amount of your last transaction, latest
dividend payment, and fund prices and yields. Additionally, you have the
ability to request prospectuses, statements, account and tax forms; reorder
checks; and initiate purchase, redemption, and exchange orders for identically
registered accounts.
PC*Access(Registered Trademark) provides the same information as
Tele*Access, but on a personal computer via dial-up modem.
Account Services
Checking -- Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield Fund and Emerging Markets Bond
Fund).
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 low, $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.
Investment Information
Combined Statement -- A comprehensive overview of your T. Rowe Price
accounts. The summary page gives your earnings by tax category, provides total
portfolio value, and lists your investments by type -- stock, bond, and money
market. Detail pages itemize account transactions by fund.
Shareholder Reports -- Portfolio managers review the performance of the
funds in plain language and discuss T. Rowe Price's economic outlook.
The T. Rowe Price Report -- A quarterly newsletter with relevant
articles on market trends, personal financial planning, and T. Rowe Price's
economic perspective.
Insights -- A library of information that includes reports on mutual
fund tax issues, investment strategies, and financial markets.
Detailed Investment Guides -- Our widely acclaimed Asset Mix Worksheet,
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available on disk for PC use), and Guide to Risk-Adjusted Performance can help
you determine and reach your investment goals.
Discount Brokerage
You can trade stocks, bonds, options, precious metals, and other securities at
a substantial savings over regular commission rates. Call a shareholder
service representative for more information.
Chart 1: Georgia Bond Yield Index - A single line chart showing the T. Rowe
Price Georgia Bond Yield Index for 12 months ended 8/31/95.
