SemiAnnual Report
T. Rowe Price
New York Tax-Free Funds
August 31, 1995
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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 3). 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.
Once again, the finances of New York State have come under pressure.
Governor Pataki must now address the $4 billion budget deficit by reducing
expenditures on welfare programs and other government services. Progress here
may be tempered by his campaign pledge to implement tax cuts over several
years. The state will also present a debt reform package to the voters in
November that would reorganize several public authorities. The slow
economy,the strain of funding Medicaid, and last year's high deficit may
dampen prospects for credit upgrades from the rating agencies.
Chart 1:- New York Yield Index
Source: T. Rowe Price Associates, Inc.
New York City's bonds were finally downgraded by Standard & Poor's to
BBB+ from single A in July. The city's economy is tied to the fortunes of Wall
Street and continues to be lackluster, as failure to resolve welfare and
health care issues with the state forced additional cuts of nearly $800
million for fiscal 1996.
New York Tax-Free Money Fund
Short-term municipal yields changed little during the quarter ended August 31,
despite the usual gyrations due to technical factors (large cash flows from
July 1 coupon and maturity payments and high seasonal note issuance). The
money market yield curve is currently rather flat, as the difference between
the daily and one-year yields averaged a meager one-quarter percentage point
during the second quarter, compared with nearly three-quarters of a percentage
point during the past 12 months.
Your fund began the quarter with a weighted average maturity 12 days
longer than its peer group average, a posture we believed was appropriate in
view of slower economic growth and the possibility of Fed easing. It remained
longer throughout the quarter-64 days versus 59 days at quarter-end.
As usual, the supply of high-quality New York issues has been sparse,
and the state, historically a major short-term borrower, was absent from the
note market for the second year in a row. We expect to remain neutral to
slightly aggressive on maturities going forward because we anticipate a stable
monetary policy near term and low new issuance through year-end.
Your fund's performance slightly exceeded its peer group average during
the second quarter and first half of the fiscal year.
Performance Comparison
Periods Ended 8/31/95
_____________________
3 Months 6 Months
_________ _________
New York Tax-Free
Money Fund 0.79% 1.68%
IBC/Donoghue Money
Fund Report Average* 0.77 1.64
* State Specific Stockbroker and General Purpose - New York
New York Tax-Free Bond Fund
The fund began its fiscal year on March 1 with a weighted average maturity of
18 years, which increased steadily to 19.2 years at the end of the second
quarter. Duration, a measure of share price sensitivity to changes in interest
rates, likewise lengthened to 7.9 years from 7.3 years during the six months
ended August 31.
We adopted this slightly aggressive posture to take advantage of the
rising bond prices and falling yields that have occurred throughout most of
the last two quarters. As the economy slowed early in 1995 and chances of Fed
easing increased, a longer average maturity and duration appeared to be the
best way to position the fund.
During the summer, we bought new issues to reduce exposure to callable
bonds, extend maturities, and capture relatively high long-term yields. Going
forward, however, we are likely to assume a more neutral posture in
anticipation of a fairly stable rate environment.
Your fund was not affected by New York City's recent rating downgrade,
since it held less than 2% of its total net assets in New York City issues. As
a result of our strategy, your fund's return exceeded that of the average for
its peers during the three- and six-month periods ended August 31.
Performance Comparison
Periods Ended 8/31/95
_____________________
3 Months 6 Months
_________ _________
New York Tax-Free
Bond Fund 0.62% 4.99%
Lipper New York
Municipal Debt Fund
Average 0.39 4.63
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.
In New York, the economy should expand modestly throughout the year,
with personal income and wage gains lagging the national average. Employment
gains are likely to occur in service and export industries, but they will be
partly offset by cutbacks in government employment at all levels, and the
state's unemployment rate should remain slightly higher than the national
average.
Ratings upgrades within the state appear unlikely for some time,
although steps are currently under way to correct the various fiscal problems.
Improving their financial well-being will be a major goal for both the state
and city governments for the rest of the year.
Respectfully submitted,
Patrice L. Berchtenbreiter
Chairman of the
Investment Advisory Committee,
New York Tax-Free Money Fund
William T. Reynolds
President and Chairman of the
Investment Advisory Committee,
New York Tax-Free Bond Fund
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
New York Tax-Free Money Fund
Key Statistics
Periods Ended
Dividend Yield 8/31/95
___________________________ _______________
7-Day Compound on 5/31/95 3.58%
7-Day Compound on 8/31/95 3.19
Dividend Per Share
___________________________
3 Months $0.008
6 Months 0.017
Weighted Average Quality* 1.9
Weighted Average Maturity 64 days
* On a T. Rowe Price scale of 1 to 10, with Grade 1 representing highest
quality.
Average Annual Compound Total Return
Periods ended August 31, 1995
Since
Inception
1 Year 5 Years (8/28/86)
_______ _______ ________
3.16% 2.83% 3.52%
Note: For the above periods ended 6/30/95, the fund's returns were 3.02%,
2.89%, and 3.53%, respectively.
Investment return represents past performance and may vary. While the fund is
managed to maintain a stable share price of $1.00, this is not guaranteed.
New York Tax-Free Bond Fund
Key Statistics
Periods Ended
Dividend Yield 8/31/95
___________________________ _______________
3 Months* 5.47%
6 Months* 5.57
SEC 30-Day Yield 5.21
Dividend Per Share
___________________________
3 Months $0.14
6 Months 0.29
Change in Price Per Share
___________________________
3 Months (From $10.67 to $10.59) $-0.08
6 Months (From $10.37 to $10.59) 0.22
Weighted Average Quality** 2.7
Weighted Average Maturity 19.2 years
Weighted Average Effective Duration 7.9 years
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the average daily net asset values per share for the same
period.
** On a T. Rowe Price scale of 1 to 10, with Grade 1 representing highest
quality.
Average Annual Compound Total Return
Periods ended August 31, 1995
Since
Inception
1 Year 5 Years (8/28/86)
_______ _______ ________
7.68% 8.68% 7.21%
Note: For the above periods ended 6/30/95, the fund's returns were 7.87%,
8.25%, and 7.12%, respectively.
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
New York Tax-Free Money Fund
Sector Diversification
Percent of Net Assets
8/31/95
_________________
General Obligation - Local 20%
Miscellaneous Revenue 17
Prerefunded Bonds 14
Ground Transportation Revenue 10
Industrial and Pollution
Control Revenue 8
Hospital Revenue 7
Dedicated Tax Revenue 5
Electric Revenue 5
Life Care Nursing Home Revenue 5
Educational Revenue 3
General Obligation - State 3
Water and Sewer Revenue 2
Escrowed to Maturity 1
New York Tax-Free Bond Fund
Sector Diversification
Percent of Net Assets
8/31/95
_________________
Dedicated Tax Revenue 17%
Water and Sewer Revenue 12
Lease Revenue 11
General Obligation - Local 10
Educational Revenue 7
Prerefunded Bonds 7
Hospital Revenue 7
Air and Sea Transportation Revenue 7
Ground Transportation Revenue 6
Housing Finance Revenue 5
Nuclear Revenue 4
General Obligation - State 3
Escrowed to Maturity 1
Electric Revenue 1
Miscellaneous Revenue 1
Other Assets Less Liabilities 1
Statement of Net Assets
T. Rowe Price New York Tax-Free Money Fund / August 31, 1995 (Unaudited)
(amounts in thousands)
Amount Value
_______ ______
NEW YORK - 99.7%
Copiague Union Free School Dist.,
GO, TAN, 4.50%, 6/28/96. . . . . . . . . . . . . .$ 1,000 $ 1,005
Dormitory Auth. of the State of New York, Cornell
Univ., VRDN (Currently 3.25%). . . . . . . . . . . 2,200 2,200
Masonic Hall Asylum,(AMBAC Insured),
VRDN (Currently 3.20%) . . . . . . . . . . . . . 3,200 3,200
Memorial Sloan-Kettering Cancer Center,
TECP, 3.55 - 3.85%, 9/12 - 11/9/95 . . . . . . . 3,900 3,900
Metropolitan Museum of Art, VRDN
(Currently 3.25%). . . . . . . . . . . . . . . . 2,900 2,900
Oxford Univ. Press Inc., VRDN
(Currently 3.45%). . . . . . . . . . . . . . . . 2,685 2,685
State Univ. Ed. Fac., 6.30%, 11/1/95
(Escrowed to Maturity) . . . . . . . . . . . . . 100 100
6.55%, 11/1/95 (Escrowed
to Maturity) . . . . . . . . . . . . . . . . 550 552
Guilderland Central School Dist., GO,TAN,
4.00%, 11/21/95. . . . . . . . . . . . . . . . . . 1,500 1,500
Mamaroneck Unified Free School Dist.,
GO, TAN, 4.00%, 2/6/96 . . . . . . . . . . . . . . 1,500 1,501
Metropolitan Transportation Auth., 8.00%,
7/1/01 (Pre-refunded 7/1/96!). . . . . . . . . . . 40 42
Monroe County, GO, 7.375%, 6/1/96. . . . . . . . . 1,000 1,025
GO,BAN, 4.50%, 6/7/96. . . . . . . . . . . . 1,000 1,005
Nassau County, GO, RAN,
4.25%, 12/28/95. . . . . . . . . . . . . . . . . . 2,500 2,503
Nassau County IDA, Cold Spring Harbor
Laboratory, VRDN (Currently 3.30%) . . . . . . . . 3,100 3,100
New York City, 9.20%, 10/1/98
(Pre-refunded 10/1/95!). . . . . . . . . . . . . . 25 26
9.375%, 10/1/01 Pre-refunded 10/1/95!) . . . . . 30 31
GO, RAN, 4.50%, 4/11/96. . . . . . . . . . . . . 2,000 2,008
New York City Municipal Water Fin. Auth.,
TECP, 3.20%, 10/12/95. . . . . . . . . . . . . . . 1,500 1,499
New York State, GO, TECP, 3.65%, 10/11/95. . . . . 900 899
New York State Energy Research & Dev.Auth.,
Orange & Rockland Utilities, (FGIC
Insured), VRDN (Currently 3.20%) . . . . . . . . . 3,200 3,200
New York State Environmental Fac. Corp.,PCR,
Solid Waste Disposal, General Electric,
TECP, 3.50 - 4.05%, 9/7 - 11/10/95 . . . . . . . . 5,200 5,200
New York State Housing Fin. Agency, Memorial
Sloan-Kettering Cancer Center,
VRDN (Currently 3.45%) . . . . . . . . . . . . . . 800 800
New York State Local Gov't. Assistance Corp.,
VRDN (Currently 3.40%) . . . . . . . . . . . . . . 3,400 3,400
New York State Medical Care Fac. Fin. Agency,
Mount Sinai Hosp., 8.875%, 1/15/26
(Pre-refunded 1/15/96!). . . . . . . . . . . . . . 2,300 2,388
New York State Power Auth., 4.40%, 9/1/95. . . . . 500 500
(FGIC Insured), 7.30%, 1/1/10
(Pre-refunded 1/1/96!) . . . . . . . . . . . . . 1,000 1,031
TECP, 3.75%, 10/25/95. . . . . . . . . . . . . . 1,000 1,000
New York State Urban Dev. Corp., 7.75%,
1/1/12 (Pre-refunded 1/1/96!). . . . . . . . . . . 1,600 1,652
Correctional Fac., 8.00%, 1/1/15
(Pre-refunded 1/1/96!) . . . . . . . . . . . . . 1,000 1,033
9.20%, 1/1/16 (Pre-refunded 1/1/96!) . . . . 500 519
Onondaga County, GO, BAN, 4.50%, 10/27/95. . . . . 1,300 1,301
Port Auth. of New York & New Jersey, TECP,
3.55 - 3.80%, 9/13 - 10/16/95* . . . . . . . . . . 3,305 3,305
Rye School Dist., TAN, 3.75%, 9/21/95. . . . . . . 1,200 1,200
Triborough Bridge & Tunnel Auth., 7.00%,
1/1/97 (Pre-refunded 1/1/96!). . . . . . . . . . . 800 824
7.625%, 1/1/06 (Pre-refunded 1/1/96!). . . . . . 50 52
7.625%, 1/1/14 (Pre-refunded 1/1/96!). . . . . . 2,000 2,064
(FGIC Insured), VRDN (Currently 3.30%) . . . . . 3,400 3,400
Amount Value
_______ ______
Trust for Cultural Resources of New York City,
American Museum of National History,(MBIA Insured),
VRDN (Currently 3.20%) . . . . . . . . . . . . . .$ 3,300 $ 3,300
West Islip Union Free School Dist.,
GO, TAN, 4.75%, 6/27/96. . . . . . . . . . . . . . 1,000 1,007
Total Investments in Securities - 99.7%
of Net Assets (Cost $68,850) . . . . . . . . . . . 68,857
Other Assets Less Liabilities . . . . . . . . . . 173
_______
Net Assets Consist of: Value
______
Accumulated net investment income - net
of distributions . . . . . . . . . . . . . . . . . 3
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . . . . (1)
Net unrealized gain (loss) . . . . . . . . . . . . 7
Paid-in-capital applicable to 69,023,781 shares no par
value shares of beneficial interest outstanding;
unlimited number of shares authorized. . . . . . . 69,021
_________
NET ASSETS . . . . . . . . . . . . . . . . $ 69,030
________
________
NET ASSET VALUE PER SHARE. . . . . . . . . $ 1.00
_____
_____
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BAN Bond Anticipation Note
FGIC Financial Guaranty Insurance Company
GO General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price New York Tax-Free Bond Fund / August 31, 1995 (Unaudited)
(amounts in thousands)
Amount Value
_______ ______
NEW YORK - 86.0%
Dormitory Auth. of the State of New York, City Univ.,
5.75%, 7/1/11. . . . . . . . . . . . . . . . . . .$ 2,000 $ 1,941
8.20%, 7/1/13. . . . . . . . . . . . . . . . 350 392
Cornell Univ., 6.875%, 7/1/14. . . . . . . . . . 2,000 2,081
7.375%, 7/1/20 . . . . . . . . . . . . . . . . . 1,500 1,658
Dept. of Health of the State of New
York, 5.50%, 7/1/20. . . . . . . . . . . . . . . 3,000 2,711
Dept. of Health, Roswell Park Cancer
Institute, 6.50%, 7/1/09 . . . . . . . . . . . . 500 520
Judicial Fac. (Suffolk County),
9.50%, 4/15/14 . . . . . . . . . . . . . . . . . 1,000 1,172
Rockefeller Univ., 6.75%, 7/1/11 . . . . . . . . 1,365 1,472
State Univ. Ed. Fac., 7.50%,
5/15/11. . . . . . . . . . . . . . . . . . . . . 2,130 2,457
7.25%, 5/15/18
(Pre-refunded 5/15/02!) . . . . . . . . . . . 1,000 1,169
Vassar College, 7.25%, 7/1/15. . . . . . . . . . 500 547
Erie County, GO, 5.50%, 6/15/25. . . . . . . . . . 250 236
(FGIC Insured), 5.50%, 6/15/14 . . . . . . . . . 1,500 1,447
Erie County Water Auth., (AMBAC Insured),
Zero Coupon, 12/1/17 . . . . . . . . . . . . . . 665 134
Great Neck Water Auth., (FGIC Insured),
VRDN (Currently 3.30%) . . . . . . . . . . . . . . 500 500
Metropolitan Transportation Auth.,
5.75%, 7/1/13. . . . . . . . . . . . . . . . . . . 2,440 2,358
Mount Sinai Union Free School Dist., GO,
(AMBAC Insured), 6.20%, 2/15/17. . . . . . . . . . 1,025 1,083
6.20%, 2/15/18 . . . . . . . . . . . . . . . . . 515 543
Municipal Assistance Corp. for the City of
New York, 6.875%, 7/1/07 . . . . . . . . . . . . . 1,500 1,597
6.90%, 7/1/07. . . . . . . . . . . . . . . . . . 1,500 1,599
6.00%, 7/1/08. . . . . . . . . . . . . . . . . . 2,525 2,583
7.625%, 7/1/08 . . . . . . . . . . . . . . . . . 500 553
Nassau County, GO, (FGIC Insured),
6.50%, 11/1/13 . . . . . . . . . . . . . . . . . . 2,000 2,159
Nassau County IDA, Cold Spring Harbor Laboratory,
VRDN (Currently 3.30%) . . . . . . . . . . . . . . 300 300
Hofstra Univ., 6.75%, 1/1/10 . . . . . . . . . . 270 287
6.90%, 1/1/14. . . . . . . . . . . . . . . . 350 370
6.90%, 1/1/15. . . . . . . . . . . . . . . . 375 395
New Rochelle, GO, (MBIA Insured), 6.25%, 3/15/17 . 375 390
6.25%, 3/15/18 . . . . . . . . . . . . . . . . . 400 416
6.25%, 3/15/19 . . . . . . . . . . . . . . . . . 425 441
New York City, GO, 7.375%, 8/15/96 . . . . . . . . 175 178
7.375%, 8/15/96 (Escrowed to Maturity) . . . . . 825 850
7.50%, 2/1/04. . . . . . . . . . . . . . . . . . 1,000 1,097
7.625%, 2/1/14 . . . . . . . . . . . . . . . . . 500 545
7.75%, 8/15/15 . . . . . . . . . . . . . . . . . 1,000 1,094
VRDN (Currently 3.60%) . . . . . . . . . . . . . 1,300 1,300
(FGIC Insured), VRDN (Currently 3.60%) . . . . . 600 600
New York City IDA, Civic Fac., Rockefeller
Foundation, 5.375%, 7/1/23 . . . . . . . . . . . . 950 892
Terminal One Group Assoc., 6.00%, 1/1/15 * . . . 1,125 1,088
6.00%, 1/1/19 *. . . . . . . . . . . . . . . 3,750 3,591
USTA National Tennis Center, (FSA
Insured), 6.375%, 11/15/14 . . . . . . . . . . . 1,000 1,040
New York City Municipal Water Fin. Auth.,
Water & Sewer, 5.50%, 6/15/23. . . . . . . . . . . 4,000 3,675
(FGIC Insured), 5.00%, 6/15/17 . . . . . . . . . 3,380 3,013
New York State, GO, 7.125%, 11/15/16 . . . . . . . 500 551
Amount Value
_______ ______
New York State Energy Research & Dev.
Auth., Con Ed. Company, 6.75%, 1/15/27 * . . . . .$ 2,350 $ 2,428
(MBIA Insured), 5.25%, 8/15/20 . . . . . . . 3,100 2,823
Orange & Rockland Utilities, (FGIC Insured),
VRDN (Currently 3.20%) . . . . . . . . . . . . . 400 400
New York State Environmental Fac. Corp.,
PCR, 5.75%, 6/15/12. . . . . . . . . . . . . . . . 1,000 1,000
New York City Municipal Water, 7.25%, 6/15/10. . 500 555
7.50%, 6/15/12 . . . . . . . . . . . . . . . 500 558
6.50%, 6/15/14 . . . . . . . . . . . . . . . 1,500 1,590
State Water Revolving Fund, 6.90%, 5/15/15 . . . 985 1,086
6.90%, 11/15/15. . . . . . . . . . . . . . . 750 862
New York State Housing Fin. Agency, Service
Contract Obligations, 7.25%, 9/15/12 . . . . . . . 500 540
7.80%, 9/15/20 (Pre-refunded 3/15/01!) . . . 500 589
7.375%, 9/15/21 (Pre-refunded 3/15/02!). . . 150 176
State Univ. Construction, 7.90%, 11/1/06
(Pre-refunded 5/1/96!) . . . . . . . . . . . . . 160 167
8.00%, 5/1/11 (Escrowed to Maturity) . . . . 750 912
New York State Local Gov't. Assistance
Corp., 6.50%, 4/1/15 . . . . . . . . . . . . . . . 500 515
6.875%, 4/1/19 . . . . . . . . . . . . . . . 215 233
6.50%, 4/1/20. . . . . . . . . . . . . . . . 3,000 3,103
7.00%, 4/1/21 (Pre-refunded 4/1/01!) . . . . 900 1,026
5.00%, 4/1/23. . . . . . . . . . . . . . . . 4,250 3,665
Public Benefit Corp., 5.375%, 4/1/16 . . . . . . 2,500 2,314
New York State Medical Care Fac. Fin. Agency,
Catholic Medical Center and St. Francis Hosp.,
(FHA Guaranteed), 5.50%, 2/15/22 . . . . . . . . . 2,750 2,593
Columbia Presbyterian Hosp., (FHA
Guaranteed), 5.10%, 8/15/10. . . . . . . . . . . 1,000 970
Ellis Hosp., (FHA Guaranteed), 8.00%, 2/15/08. . 1,000 1,114
Mental Health Services, (FGIC Insured),
6.375%, 8/15/10. . . . . . . . . . . . . . . . . 450 472
New York Hosp., (AMBAC Insured), 6.50%,
8/15/29. . . . . . . . . . . . . . . . . . . . . 2,000 2,082
St. Luke's-Roosevelt Hosp. Center,
(FHA Guaranteed), 7.45%, 2/15/29 (Pre-refunded
2/15/00!). . . . . . . . . . . . . . . . . . . . 1,500 1,710
St. Vincent / Staten Island Hosp., (FHA
Guaranteed), 6.125%, 2/15/14 . . . . . . . . . . 465 477
New York State Mortgage Agency, Capital
Appreciation Home Ownership, Zero Coupon, 4/1/20 . 3,955 579
Homeowner Mortgage, 7.95%, 10/1/15 . . . . . . . 1,135 1,214
7.75%, 4/1/16. . . . . . . . . . . . . . . . 500 533
7.50%, 4/1/26 *. . . . . . . . . . . . . . . 3,250 3,467
New York State Urban Dev. Corp., Correctional Capital
Fac., 7.00%, 1/1/21 (Pre-refunded 1/1/02!) . . . . 500 574
Newburgh, GO, 5.00%, 9/15/95 . . . . . . . . . . . 200 200
5.625%, 9/15/96. . . . . . . . . . . . . . . 215 218
5.875%, 9/15/97. . . . . . . . . . . . . . . 215 220
Niagara Frontier Transportation Airport Auth.,
Greater Buffalo Int'l. Airport, (AMBAC Insured),
6.125%, 4/1/14 * . . . . . . . . . . . . . . . . . 1,385 1,400
Port Auth. of New York & New Jersey, (FGIC
Insured), 6.50%, 7/15/19 * . . . . . . . . . . . . 2,000 2,113
Rensselaer County, GO, (FGIC Insured),
Zero Coupon, 5/1/12. . . . . . . . . . . . . . . . 1,000 389
Zero Coupon, 5/1/13. . . . . . . . . . . . . 1,500 547
Suffolk County Water Auth., Water System,
(MBIA Insured), 5.00%, 6/1/15. . . . . . . . . . . 1,000 909
Amount Value
_______ ______
Syracuse IDA, St. Joseph's Hosp.
Health Center, 7.50%, 6/1/18 . . . . . . . . . . .$ 1,000 $ 1,045
Triborough Bridge & Tunnel Auth., 6.625%, 1/1/12 . 500 553
8.125%, 1/1/12 . . . . . . . . . . . . . . . 400 444
5.00%, 1/1/17. . . . . . . . . . . . . . . . 7,395 6,560
_________________________________________________________________
PUERTO RICO - 13.0%
Puerto Rico Aqueduct & Sewer Auth., 7.875%, 7/1/17 1,250 1,392
Puerto Rico Commonwealth, GO, 8.00%, 7/1/07. . . . 330 367
8.00%, 7/1/07 (Pre-refunded 7/1/98!) . . . . 1,170 1,310
7.25%, 7/1/10 (Pre-refunded 7/1/00!) . . . . 500 567
7.625%, 7/1/10 (Pre-refunded 7/1/00!). . . . 500 578
7.30%, 7/1/20 (Pre-refunded 7/1/00!) . . . . 250 286
(MBIA Insured), 5.375%, 7/1/22 . . . . . . . 3,045 2,846
Puerto Rico Electric Power Auth., 8.00%,
7/1/08 (Pre-refunded 7/1/98!). . . . . . . . . . . 100 112
7.125%, 7/1/14 . . . . . . . . . . . . . . . 1,000 1,079
Puerto Rico Highway & Transportation Auth.,
6.375%, 7/1/08 . . . . . . . . . . . . . . . . . . 1,000 1,074
6.625%, 7/1/18 . . . . . . . . . . . . . . . 500 521
(FSA Insured), 5.25%, 7/1/21 . . . . . . . . 1,000 919
Puerto Rico Housing Bank & Fin. Agency,
5.125%, 12/1/05. . . . . . . . . . . . . . . . . . 740 711
Puerto Rico Infrastructure Fin. Auth.,
7.75%, 7/1/08. . . . . . . . . . . . . . . . . . . 2,750 3,044
Puerto Rico Public Buildings Auth., GO,
7.875%, 7/1/16 (Pre-refunded 7/1/97!). . . . . . . 110 120
Univ. of Puerto Rico, (MBIA Insured), 5.25%, 6/1/25 1,500 1,372
_________________________________________________________________
OPTIONS PURCHASED - 0.0%
Put Options expiring 11/18/95 on
December 1995 U.S. Treasury Note futures contracts with
a strike price of $110.00 and a current market
price of $112.75!! . . . . . . . . . . . . . . . . 20 21
Value
_____
Total Investments in Securities - 99.0% of
Net Assets (Cost $117,787). . . . . . . . . . . . 124,269
Futures Contracts
Contract Unrealized
Expiration Value Gain (Loss)
________ _______ _________
Short, 13 U.S. Treasury
thirty-year contracts,
$1,550,000 of Municipal Bonds
pledged as initial margin 12/95 $ (1,466) $ (10)
Net payments (receipts)
of variation margin to date. . . . . . . . . . . . 2
________
Variation margin receivable
(payable) on open futures contracts. . . . . . . . (8)
Other Assets Less Liabilities . . . . . . . . . . 1,321
_______
Net Assets Consist of: Value
_______
Accumulated net investment income -
net of distributions. . . . . . . . . . . . . . 4
Accumulated net realized gain/loss -
net of distributions. . . . . . . . . . . . . . (2,522)
Net unrealized gain (loss) . . . . . . . . . . . . 6,472
Paid-in-capital applicable to 11,861,277
no par value shares of beneficial
interest outstanding; unlimited number
of shares authorized. . . . . . . . . . . . . . 121,628
. . . . . . . . . . . . . . . . . . . . . . . . _________
NET ASSETS . . . . . . . . . . . . . . . . . . . . $125,582
_________
_________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . $10.59
______
______
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
!! Non-income producing
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FSA Financial Security Assurance Corp.
GO General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price New York Tax-Free Funds / Six Months Ended August 31, 1995
(Unaudited)
(in thousands)
Money Fund Bond Fund
_________ ________
INVESTMENT INCOME
Interest income. . . . . . . . . . . . . . . . . . $ 1,344 $ 3,777
_______ _______
Expenses
Investment management. . . . . . . . . . . . . . 80 263
Custodian and accounting . . . . . . . . . . . . 50 62
Shareholder servicing. . . . . . . . . . . . . . 43 57
Legal and audit. . . . . . . . . . . . . . . . . 6 8
Registration . . . . . . . . . . . . . . . . . . 5 -
Trustees . . . . . . . . . . . . . . . . . . . . 3 3
Prospectus and shareholder reports . . . . . . . 1 2
Miscellaneous. . . . . . . . . . . . . . . . . . 3 3
______ _______
Total expenses . . . . . . . . . . . . . . . . . 191 398
_______ _______
Net investment income. . . . . . . . . . . . . . . 1,153 3,379
_______ _______
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities . . . . . . . . . . . . . . . . . . . - 2,136
Futures. . . . . . . . . . . . . . . . . . . . . - (86)
Options. . . . . . . . . . . . . . . . . . . . . - (24)
_______ _______
Net realized gain (loss) . . . . . . . . . . . . - 2,026
_______ _______
Change in net unrealized gain or loss on:
Securities . . . . . . . . . . . . . . . . . . . 5 429
Futures. . . . . . . . . . . . . . . . . . . . . - (10)
_______ ________
Change in net unrealized gain or
loss. . . . . . . . . . . . . . . . . . . . . . 5 419
_______ _______
Net realized and unrealized gain
(loss) . . . . . . . . . . . . . . . . . . . . . 5 2,445
_______ _______
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS. . . . . . . . . . . . . . . . .$ 1,158 $ 5,824
_______ _______
_______ _______
Statement of Changes in Net Assets
T. Rowe Price New York Tax-Free Funds (Unaudited)
(in thousands)
Money Fund
_______________________
Six Months
Ended
Aug. 31, Year Ended
1995 Feb. 28, 1995
______________________
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income. . . . . . . . . . . . . $ 1,153 $ 1,565
Net realized gain (loss) . . . . . . . . . . . . - -
Change in net unrealized gain or
loss . . . . . . . . . . . . . . . . . . . . 5 9
__________ __________
Increase (decrease) in net assets
from operations. . . . . . . . . . . . . . . 1,158 1,574
__________ __________
Distributions to shareholders
Net investment income. . . . . . . . . . . . . . (1,153) (1,565)
Net realized gain on investments . . . . . . . . - -
__________ __________
Decrease in net assets from
distributions. . . . . . . . . . . . . . . . (1,153) (1,565)
__________ __________
Capital share transactions*
Shares sold. . . . . . . . . . . . . . . . . . . 31,118 66,703
Distributions reinvested . . . . . . . . . . . . 1,107 1,498
Shares redeemed. . . . . . . . . . . . . . . . . (29,354) (59,792)
__________ __________
Increase (decrease) in net assets from
capital share transactions . . . . . . . . . 2,871 8,409
__________ __________
Increase (decrease) in net assets. . . . . . . . . 2,876 8,418
NET ASSETS
Beginning of period. . . . . . . . . . . . . . . . 66,154 57,736
__________ __________
End of period. . . . . . . . . . . . . . . . . . $ 69,030 $ 66,154
__________ __________
__________ __________
________________________________________________________________
*Share information
Shares sold. . . . . . . . . . . . . . . . . . . 31,118 66,703
Distributions reinvested . . . . . . . . . . . . 1,107 1,498
Shares redeemed. . . . . . . . . . . . . . . . . (29,354) (59,792)
__________ __________
Increase (decrease) in shares
outstanding. . . . . . . . . . . . . . . . . . . 2,871 8,409
__________ __________
__________ __________
_________________________________________________________________
Bond Fund
_______________________
Six Months
Ended
Aug. 31, Year Ended
1995 Feb. 28, 1995
______________________
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income. . . . . . . . . . . . . $ 3,379 $ 6,736
Net realized gain (loss) . . . . . . . . . . . . 2,026 (4,418)
Change in net unrealized gain or
loss . . . . . . . . . . . . . . . . . . . . 419 (2,118)
__________ __________
Increase (decrease) in net assets
from operations. . . . . . . . . . . . . . . 5,824 200
__________ __________
Distributions to shareholders
Net investment income. . . . . . . . . . . . . . (3,379) (6,736)
Net realized gain on investments . . . . . . . . - (932)
__________ __________
Decrease in net assets from
distributions. . . . . . . . . . . . . . . . (3,379) (6,736)
__________ __________
Capital share transactions*
Shares sold. . . . . . . . . . . . . . . . . . . 15,239 31,799
Distributions reinvested . . . . . . . . . . . . 2,573 5,980
Shares redeemed. . . . . . . . . . . . . . . . . (12,522) (42,811)
__________ __________
Increase (decrease) in net assets from
capital share transactions . . . . . . . . . 5,290 (5,032)
__________ __________
Increase (decrease) in net assets. . . . . . . . . 7,735 (12,500)
NET ASSETS
Beginning of period. . . . . . . . . . . . . . . . 117,847 130,347
__________ __________
End of period. . . . . . . . . . . . . . . . . . $ 125,582 $ 117,847
__________ __________
__________ __________
________________________________________________________________
*Share information
Shares sold. . . . . . . . . . . . . . . . . . . 1,452 3,123
Distributions reinvested . . . . . . . . . . . . 245 584
Shares redeemed. . . . . . . . . . . . . . . . . (1,195) (4,222)
__________ __________
Increase (decrease) in shares
outstanding. . . . . . . . . . . . . . . . . . . 502 (515)
__________ __________
__________ __________
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price New York Tax-Free Funds / 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 New York Tax-Free Money Fund (the Money
Fund ) and the New York Tax-Free Bond Fund (the Bond Fund), non-diversified,
open-end management investment companies, are two 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. Except with
respect to certain securities held by the Money Fund, 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. Securities held by the Money Fund with
remaining maturities of 60 days or less are valued at amortized cost.
Financial futures contracts and options on futures contracts are valued at
closing settlement prices.
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
each 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. Payments ("variation margin") made or received by the
fund to settle the daily fluctuations in the value of futures contracts, are
recorded as unrealized gain or loss until the contracts are closed. Unrealized
gains and losses on futures contracts are included in Change in net unrealized
gain or loss in the accompanying financial statements.
Note 2 - Investment Transactions
Consistent with their investment objectives, the funds engage in the following
practices to manage exposure to certain risks and enhance performance. The
investment objective, policies, program, risk factors, and following practices
of each fund are described more fully in each fund's Prospectus and Statement
of Additional Information.
A) Futures Contracts - At August 31, 1995, the Bond Fund was a party to
futures contracts, which provide for the future sale by one party and purchase
by another of a specified amount of a specific financial instrument at an
agreed upon price, date, time and place. Risks arise from possible illiquidity
of the futures market and from movements in security values.
B) Options - Call and put options on futures contracts give the holder the
right to purchase or sell, respectively, a particular futures contract at a
specified price on a certain date. Risks arise from possible illiquidity of
the options market and from movements in underlying futures prices. Options
are reflected in the Bond Fund's accompanying Statement of Net Assets at
market value.
C) Purchases and sales of portfolio securities for the Bond Fund, other than
short-term securities, aggregated $81,292,000 and $76,288,000, respectively,
for the six months ended August 31, 1995.
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since each fund intends to
continue to qualify as a regulated investment company and distribute all of
its income. The Bond Fund has unused realized capital loss carryforwards for
federal income tax purposes of $3,594,000 which expire in 2003. Each 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 the Money and
Bond funds for federal income tax and financial reporting purposes was
$68,850,000 and $117,787,000, respectively. Net unrealized gain on investments
was as follows:
Money Fund Bond Fund
_____________ _____________
Appreciated Investments $ 16,000 $ 6,540,000
Depreciated Investments (9,000) (58,000)
____________ ____________
Net Unrealized Gain (Loss) $ 7,000 $ 6,482,000
____________ ____________
____________ ____________
Note 4 - Related Party Transactions
The investment management agreement between each fund and T. Rowe Price
Associates, Inc. (the Manager) provides for an annual investment management
fee, of which $15,000 and $44,000 was payable at August 31, 1995, by the Money
Fund and Bond Fund, respectively. 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%. Each 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, for the Money and
Bond funds which would cause each fund's ratio of expenses to average net
assets to exceed 0.55% and 0.65%, respectively. Pursuant to this agreement,
$73,000 and $6,000 of management fees were not accrued by the Money and the
Bond funds, respectively, for the six months ended August 31, 1995. Pursuant
to a prior agreement, $535,000 and $359,000 of management fees remain
unaccrued for the Money and Bond funds, respectively, as a result of each
fund's ratio of expenses to average net assets exceeding 0.55% and 0.60%,
respectively, in prior periods. Subject to shareholder approval, each fund may
reimburse the Manager for these expenses, provided that average net assets
have grown or expenses have declined sufficiently to allow reimbursement
without causing each fund's ratio of expenses to average net assets to exceed
0.55% and 0.65%, respectively, for the current limitation period and 0.55% and
0.60%, respectively, for the prior periods.
In addition, each fund has entered into agreements with the Manager and a
wholly owned subsidiary of the Manager, pursuant to which each fund receives
certain other services. The Manager computes the daily share price and
maintains the financial records of each fund. T. Rowe Price Services, Inc. is
each fund's transfer and dividend disbursing agent and provides shareholder
and administrative services to each fund. The Money and Bond funds incurred
expenses pursuant to these related party agreements totaling approximately
$69,000 and $85,000, respectively, for the six months ended August 31, 1995,
of which $14,000 and $18,000, respectively, were payable at period-end.
Financial Highlights
T. Rowe Price New York Tax-Free Money Fund (Unaudited)
<TABLE>
For a share outstanding throughout each period
_________________________________________________________
Year Ended
Six Months _______________________________________________
Ended Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
August 31,
1995 1995 1994 1993 1992 1991
__________________________________________________________________
<S> <C> <C> <C> <C> <C> <C.
NET ASSET VALUE, BEGINNING
OF PERIOD . . . . . . . . . . . $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
______ ______ ______ ______ ______ ______
Investment Activities
Net investment
income. . . . . . . . . . . . . 0.017* 0.025* 0.018* 0.022* 0.035* 0.047*
Distributions
Net investment
income. . . . . . . . . . . . . (0.017) (0.025) (0.018) (0.022) (0.035) (0.047)
______ ______ ______ ______ ______ ______
NET ASSET VALUE, END
OF PERIOD . . . . . . . . . . . $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
RATIOS / SUPPLEMENTAL DATA
Total Return . . . . . . . . . . . 1.68% 2.49% 1.84% 2.22% 3.60% 4.79%
Ratio of Expenses to Average
Net Assets. . . . . . . . . . . 0.55%!* 0.55%* 0.55%* 0.55%* 0.55%* 0.72%*
Ratio of Net Investment
Income to Average
Net Assets. . . . . . . . . . . 3.33%! 2.48% 1.82% 2.21% 3.54% 4.69%
Net Assets, End of Period
(in thousands). . . . . . . . . $69,030 $66,154 $57,736 $53,904 $53,429 $54,529
<FN>
! Annualized.
* Excludes expenses in excess of a 0.55% voluntary expense limitation in effect November 7, 1990 through
February 28, 1997, and a 0.80% voluntary expense limitation in effect through November 6, 1990.
</FN>
</TABLE>
Financial Highlights
T. Rowe Price New York Tax-Free Bond Fund (Unaudited)
<TABLE>
For a share outstanding throughout each period
_________________________________________________________
Year Ended
Six Months _______________________________________________
Ended Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
August 31,
1995 1995 1994 1993 1992 1991
__________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD . . . . . . . . . . . $10.37 $10.98 $11.05 $10.12 $ 9.74 $ 9.64
____________ ______ ______ ______ ______
Investment Activities
Net investment
income. . . . . . . . . . . . . 0.29* 0.58* 0.59* 0.62* 0.63* 0.62*
Net realized and
unrealized gain
(loss). . . . . . . . . . . . . 0.22 (0.53) 0.09 0.93 0.38 0.10
______ ______ ______ ______ ______
Total from Investment Activities . 0.51 0.05 0.68 1.55 1.01 0.72
______ ______ ______ ______ ______ ______
Distributions
Net investment
income. . . . . . . . . . . . . (0.29) (0.58) (0.59) (0.62) (0.63) (0.62)
Net realized gain . . . . . . . - (0.08) (0.16) - - -
______ ______ ______ ______ ______ ______
Total
Distributions . . . . . . . . . (0.29) (0.66) (0.75) (0.62) (0.63) (0.62)
______ ______ ______ ______ ______
NET ASSET VALUE,
END OF PERIOD . . . . . . . . . $10.59 $10.37 $10.98 $11.05 $10.12 $ 9.74
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______
RATIOS / SUPPLEMENTAL DATA
Total Return . . . . . . . . . . . 4.99% 0.74% 6.31% 15.79% 10.67% 7.73%
Ratio of Expenses to Average
Net Assets. . . . . . . . . . . 0.65%!* 0.60%* 0.60%* 0.60%* 0.60%* 0.73%*
Ratio of Net Investment
Income to Average
Net Assets. . . . . . . . . . . 5.52%! 5.71% 5.31% 5.91% 6.33% 6.43%
Portfolio Turnover
Rate. . . . . . . . . . . . . . 130.5%! 134.3% 84.9% 41.5% 48.7% 61.5%
Net Assets, End of Period
(in thousands). . . . . . . . . $125,582 $117,847 $130,347 $112,026 $74,243 $54,834
<FN>
! Annualized.
* Excludes expenses in excess of a 0.65% voluntary expense limitation in effect March 1, 1995 through
February 28, 1997, a 0.60% voluntary expense limitation in effect November 7, 1990 through February 28,
1995 and a 0.80% voluntary expenses limitation in effect November 1, 1989 through November 6, 1990.
</FN>
</TABLE>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,
College Planning Kit, Retirees Financial Guide, Retirement Planning Kit (also
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.
T. Rowe Price No-Load Mutual Funds
STABILITY
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
CONSERVATIVE INCOME
Short-Term Bond
Short-Term Global Income
Short-Term U.S. Government
Summit Limited-Term Bond
U.S. Treasury Intermediate
Florida Insured Intermediate Tax-Free
Maryland Short-Term Tax-Free Bond
Summit Municipal Intermediate
Tax-Free Insured Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
INCOME
Global Government Bond
GNMA
New Income
Spectrum Income
Summit GNMA
U.S. Treasury Long-Term
California Tax-Free Bond
Georgia Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Tax-Free Income
Virginia Tax-Free Bond
AGGRESSIVE INCOME
Emerging Markets Bond
High Yield
International Bond
Tax-Free High Yield
CONSERVATIVE GROWTH
Balanced
Capital Appreciation
Dividend Growth
Equity Income
Equity Index
Growth & Income
Spectrum Growth
Value
GROWTH
Blue Chip Growth
European Stock
Growth Stock
International Stock
Japan
Mid-Cap Growth
New Era
Small-Cap Value
AGGRESSIVE GROWTH
Capital Opportunity
Emerging Markets Stock
International Discovery
Latin America
New America Growth
New Asia
New Horizons
OTC
Science & Technology
PERSONAL STRATEGY FUNDS
Personal Strategy Income
Personal Strategy Balanced
Personal Strategy Growth
Call if you want to know about any T. Rowe Price fund. We'll send you a
prospectus with more complete information, including management fees and other
expenses. Read it carefully before you invest or send money.
T. Rowe Price Investment Services, Inc., Distributor.
Chart 1 - municipal yield chart showing New York Bond Index and New York Money
Index from 8/31/94 through 8/31/95.
