SemiAnnual Report
T. Rowe Price
California Tax-Free Funds
August 31, 1995
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Tax-Free Funds.
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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,
Graph: California Yield Indexes
Source: T. Rowe Price Associates, Inc.
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.
While Orange County's problems have resonated throughout the California
bond market, the worst may be over. Concerns about a default by the county
weakened investor confidence statewide. For example, many issuers of
short-term paper were forced to rely on credit enhancements such as letters of
credit to access the nervous market. Investors' worst fears were finally
allayed in July when the county struck an agreement with noteholders to defer
some payments while it developed a recovery plan. Since then, California note
and bond prices have improved relative to national municipals.
This recent stronger performance was aided in part by light supply in
the state. California issuers have sold 37% less debt so far in 1995 than
during the comparable year-ago period, whereas new issuance nationally is only
22% lower for the period. As a result, the California market has performed
well overall, and investors have shown a particularly strong appetite for
stable and improving credits, such as the cities of San Francisco and Los
Angeles, which have maintained AA ratings, and Santa Monica, upgraded by
Moody's to Aaa.
California 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
difference between the daily and one-year security yields averaged a meager
one-quarter percentage point during the quarter, compared with nearly
three-quarters of a percentage point during the past 12 months. While
California 12-month yields were as much as 15 basis points higher than
comparable out-of-state securities, daily and weekly yields were lower than
national levels, reflecting a flight to safety within the state.
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. Early in the
quarter, we shortened maturities substantially to take advantage of seasonal
issuance, which usually puts upward pressure on yields. After having been
significantly shorter than the average at midquarter, we lengthened to 46 days
by August 31 compared with the competition's average of 52 days.
This strategy allowed us to lock in securities with higher yields. We
expect to remain neutral to slightly aggressive going forward because we
believe the Fed will maintain a stable monetary policy near term. Also, new
short-term issuance is running about 20% below year-ago levels. The state, the
largest issuer of notes in recent years, is not expected to sell any in 1995.
Your fund's performance was in line with the average for comparable
funds over the first half of the fiscal year.
Performance Comparison
Periods Ended 8/31/95
_____________________
3 Months 6 Months
_________ _________
California Tax-Free
Money Fund 0.79% 1.68%
IBC/Donoghue Money Fund
Report Average* 0.79 1.67
* State Specific Stockbroker and General Purpose - California
California Tax-Free Bond Fund
Your fund began its fiscal year with a duration of 7.6 years, a conservative
posture reflecting lingering concerns about Orange County and low investor
demand for bonds within the state. In March we lengthened the duration to a
more neutral 8.0 years as interest rates headed lower.
The entire California market came under pressure in June because of a
combination of high new issuance, the imminent maturity of Orange County's
short-term debt in July, and state budget uncertainty. We viewed this
situation as temporary and lengthened duration further. In July and August,
the market stabilized as supply dropped sharply and Orange County reached an
agreement with its creditors. As a result, California yields, which had
matched national averages, once again fell to their normally lower levels and
prices rose.
We weathered much of the last year with a higher than usual exposure to
insured bonds for extra credit protection. As the state continues its modest
recovery, we will look for opportunities to broaden exposure to improving
credit ratings within the state.
Our progressively bolder strategy enabled your fund to outstrip its peer
group average over the three months ended August 31, while performing in line
with the group during the first six months of the fiscal year.
Performance Comparison
Periods Ended 8/31/95
_____________________
3 Months 6 Months
_________ _________
California Tax-Free
Bond Fund 0.40% 4.43%
Lipper California
Municipal Debt Fund
Average 0.12 4.49
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.
California continues to experience modest economic growth, although
below the national average, and the state has made real progress in reducing
its budget deficits. We are cautiously optimistic about California's prospects
for further improvement.
Respectfully submitted,
Patrice L. Berchtenbreiter
Chairman of the Investment Advisory Committee,
California Tax-Free Money Fund
Mary J. Miller
Chairman of the Investment Advisory Committee,
California Tax-Free Bond Fund
September 15, 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
California Tax-Free Money Fund
Key Statistics
Periods Ended
Dividend Yield 8/31/95
___________________________ _______________
7-Day Compound on 5/31/95 3.55%
7-Day Compound on 8/31/95 3.10
Dividend Per Share
___________________________
3 Months $0.008
6 Months 0.017
Weighted Average Quality* 2.0
Weighted Average Maturity 46 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 (9/15/86)
_______ _______ ________
3.19% 2.85% 3.63%
Note: For the above periods ended 6/30/95, the fund's returns were 3.06%,
2.90%, and 3.65%, 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.
California Tax-Free Bond Fund
Key Statistics
Periods Ended
Dividend Yield 8/31/95
___________________________ _______________
3 Months* 5.48%
6 Months* 5.53
SEC 30-Day Yield 5.32
Dividend Per Share
___________________________
3 Months $0.14
6 Months 0.28
Change in Price Per Share
___________________________
3 Months (From $10.26 to $10.16) $-0.10
6 Months (From $10.00 to $10.16) 0.16
Weighted Average Quality** 2.4
Weighted Average Maturity 18.9 years
Weighted Average Effective Duration 7.8 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 (9/15/86)
_______ _______ ________
7.79% 8.36% 6.55%
Note: For the above periods ended 6/30/95, the fund's returns were 7.74%,
7.73%, and 6.42%, 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.
California Tax-Free Money Fund
Sector Diversification
Percent of Net Assets
8/31/95
_________________
Hospital Revenue 19%
Water and Sewer Revenue 17
Lease Revenue 13
Dedicated Tax Revenue 11
Prerefunded Bonds 9
Nuclear Revenue 7
General Obligation - Local 6
Air and Sea Transportation Revenue 5
Pooled Loan Revenue 5
Educational Revenue 2
Escrowed to Maturity 1
Other Assets Less Liabilities 5
California Tax-Free Bond Fund
Sector Diversification
Percent of Net Assets
8/31/95
_________________
Dedicated Tax Revenue 14%
Lease Revenue 12
Water and Sewer Revenue 10
Housing Finance Revenue 9
Air and Sea Transportation Revenue 9
Nuclear Revenue 8
Prerefunded Bonds 7
General Obligation - Local 6
Hospital Revenue 6
Electric Revenue 6
Educational Revenue 3
Solid Waste Revenue 3
Escrowed to Maturity 2
General Obligation - State 2
Ground Transportation Revenue 1
Miscellaneous Revenue 1
Other Assets Less Liabilities 1
Portfolio of Investments
T. Rowe Price California Tax-Free Money Fund / August 31, 1995 (Unaudited)
(amounts in thousands)
Amount Value
_______ _______
CALIFORNIA - 93.5%
Alameda County Transportation Auth.,Sales
Tax, TRAN,(FGIC Insured), 4.50%, 5/1/96. . . . . . . $ 1,000 $ 1,004
California Dept. of Water Resources, TECP,
3.75%, 9/22/95 . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Central Valley, 7.50%, 12/1/22
(Pre-refunded 12/1/95!). . . . . . . . . . . . . . . 15 15
Water Systems, VRDN (Currently 3.35%). . . . . . . . 2,400 2,400
California EFA, California Institute Of Technology,
VRDN (Currently 3.20%) . . . . . . . . . . . . . . . . 1,100 1,100
Stanford Univ., 8.50%, 9/1/15
(Pre-refunded 9/1/95!) . . . . . . . . . . . . . . . 60 61
California HFFA, Catholic Healthcare West,
(MBIA Insured), VRDN (Currently 3.40%) . . . . . . . . 200 200
Kaiser Permanente, VRDN (Currently 3.35%). . . . . . 3,400 3,400
Pooled Loan Program, (FGIC Insured), VRDN
(Currently 3.35%). . . . . . . . . . . . . . . . . . 3,200 3,200
Santa Barbara Cottage Hosp.,
VRDN (Currently 3.30%) . . . . . . . . . . . . . . . 3,400 3,400
California Pollution Control Fin. Auth.,
Pacific Gas & Electric, TECP,
3.60 - 3.75%, 10/12 - 11/17/95 * . . . . . . . . . . . 3,000 2,999
California Statewide CDA, St. Joseph Health
Systems, VRDN (Currently 3.40%). . . . . . . . . . . . 3,400 3,400
Contra Costa Trans. Auth., Sales Tax, (FGIC
Insured), VRDN (Currently 3.40%) . . . . . . . . . . . 3,400 3,400
East Bay Municipal Utility Dist., TECP, 3.70 -
3.75%, 9/21 - 11/29/95 . . . . . . . . . . . . . . . . 1,300 1,300
Elk Grove Unified School District, TRAN, 4.50%,
7/31/96. . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,004
Irvine Public Fac. & Infrastructure Auth.,
VRDN (Currently 3.75%) . . . . . . . . . . . . . . . . 2,500 2,500
Irvine Ranch Water Dist., Capital Improvement,
VRDN (Currently 3.35%) . . . . . . . . . . . . . . . . 3,100 3,100
Kern County Union High School Dist., Golden Empire
Schools, VRDN (Currently 3.40%). . . . . . . . . . . . 1,100 1,100
Long Beach, Harbor Dept., TECP, 3.65 - 3.85%,
9/8 - 12/8/95 *. . . . . . . . . . . . . . . . . . . . 3,500 3,500
Los Angeles Community Redev. Agency, Bunker Hill
Project, 8.20%, 12/1/95
(Escrowed to Maturity) . . . . . . . . . . . . . . . . 1,000 1,011
Los Angeles County, COP, (MBIA Insured) 10.50%,
4/1/05 (Pre-refunded 10/1/95!) . . . . . . . . . . . . 990 1,010
Los Angeles County Metropolitan Trans. Auth.,
Union Station Gateway, (FSA Insured), VRDN
(Currently 3.50%). . . . . . . . . . . . . . . . . . . 3,400 3,400
Los Angeles Dept. Water & Electric Power, TECP,
3.70 - 3.75%, 9/20 - 9/28/95 . . . . . . . . . . . . . 2,200 2,200
Los Angeles Unified School Dist., GO, TRAN, 4.50%,
7/3/96 . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,005
Los Angeles Waste Water Systems, TECP, 3.65 - 3.85%,
9/12 - 11/16/95. . . . . . . . . . . . . . . . . . . . 3,400 3,400
Metropolitan Water Dist. of Southern California,
TECP, 3.70%, 10/26/95. . . . . . . . . . . . . . . . . 800 800
Modesto Irrigation Dist., Geysers Geothermal,
COP, (MBIA Insured), 8.875%, 10/1/17
(Pre-refunded 10/1/95!). . . . . . . . . . . . . . . . 25 26
Monterey County, COP, 9.00%, 12/1/17
(Pre-refunded 12/1/95!). . . . . . . . . . . . . . . . 1,000 1,037
Newport Beach, Hoag Memorial Hosp. Presbyterian,
VRDN (Currently 3.45%) . . . . . . . . . . . . . . . . 2,815 2,815
Oakland, COP, VRDN (Currently 3.75%) . . . . . . . . . 2,400 2,400
GO, TRAN, 4.50%, 7/31/96 . . . . . . . . . . . . . . . 1,000 1,005
Riverside County, COP, VRDN (Currently 3.45%). . . . . 1,800 1,800
Sacramento County, Telecommunications Systems,
COP, VRDN (Currently 3.35%). . . . . . . . . . . . . . 100 100
Amount Value
_______ _______
San Mateo County, COP, VRDN (Currently 3.30%). . . . $ 785 $ 785
Santa Clara - El Camino Hosp. Dist., Valley
Medical Center, VRDN (Currently 3.40%) . . . . . . . . 500 500
Santa Cruz County Redev. Agency, Live Oak/Soquel
Community, 8.20%, 11/1/13
(Pre-refunded 11/1/95!). . . . . . . . . . . . . . . . 745 769
South Poway Community Fac., 9.75%, 3/2/11
(Pre-refunded 3/2/96!) . . . . . . . . . . . . . . . . 1,600 1,694
Stanislaus County, CSAC Fin. Corp., 8.00%, 4/1/18
(Pre-Refunded 10/1/95!). . . . . . . . . . . . . . . . 2,000 2,027
NEW YORK - 1.4%
New York City, GO, RAN, 4.50%, 4/11/96 . . . . . . . . 1,000 1,004
Total Investments in Securities - 94.9% of Net Assets
(Cost $66,871). . . . . . . . . . . . . . . . . . . . 66,871
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
CDA Community Development Administration
COP Certificates of Participation
EFA Educational Facility Authority
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
GO General Obligation
HFFA Health Facility Financing Authority
MBIA Municipal Bond Investors Assurance Corp.
RAN Revenue Anticipation Note
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Assets and Liabilities
T. Rowe Price California Tax-Free Money Fund / August 31, 1995 (Unaudited)
(in thousands)
ASSETS
Investments in securities, at value (cost $66,871) . . . . .$ 66,871
Other assets . . . . . . . . . . . . . . . . . . . . . . . . 3,752
___________
Total assets 70,623
___________
LIABILITIES
Total liabilities. . . . . . . . . . . . . . . . . . . . . . 178
___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . .$ 70,445
___________
___________
Net Assets Consist of:
Accumulated net investment income -
net of distributions . . . . . . . . . . . . . . . . . .$ 4
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . . . . . . . (128)
Paid-in-capital applicable to 70,573,467 shares of
no par value shares of beneficial interest
outstanding; unlimited number of
shares authorized. . . . . . . . . . . . . . . . . . . . 70,569
___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . .$ 70,445
___________
___________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . .$ 1.00
___________
___________
Statement of Net Assets
T. Rowe Price California Tax-Free Bond Fund/August 31, 1995 (Unaudited)
(amounts in thousands)
Amount Value
_______ _______
CALIFORNIA - 97.4%
Brea Public Fin. Auth., Tax Allocation Redev.,
(MBIA Insured), 6.75%, 8/1/22. . . . . . . . . . . . $ 1,435 $ 1,512
California, GO, 6.40%, 2/1/20 *. . . . . . . . . . . . 2,200 2,207
California Dept. of Water Resources, Central
Valley, 7.00%, 12/1/11 . . . . . . . . . . . . . . . . 1,730 1,978
7.00%, 12/1/12. . . . . . . . . . . . . . . . . . 1,000 1,145
Water Systems, VRDN (Currently 3.35%). . . . . . . . 600 600
California EFA, Pomona College, 6.00%, 2/15/17 . . . . 2,850 2,850
St. Mary's College of California, 7.50%,
10/1/20 (Pre-refunded 10/1/00!). . . . . . . . . . . 2,000 2,305
California HFA, Catholic Healthcare West,
(AMBAC Insured), 5.75%, 7/1/15 . . . . . . . . . . . . 1,050 1,015
California Housing Fin. Agency, 8.10%, 8/1/07. . . . . 300 322
7.20%, 8/1/09 . . . . . . . . . . . . . . . . . . 330 351
7.625%, 8/1/09. . . . . . . . . . . . . . . . . . 2,305 2,454
7.25%, 8/1/10 . . . . . . . . . . . . . . . . . . 230 244
6.70%, 8/1/15 . . . . . . . . . . . . . . . . . . 1,100 1,133
6.85%, 8/1/17 . . . . . . . . . . . . . . . . . . 3,115 3,242
7.25%, 8/1/17 . . . . . . . . . . . . . . . . . . 1,000 1,085
8.20%, 8/1/17 . . . . . . . . . . . . . . . . . . 1,425 1,518
7.875%, 8/1/19. . . . . . . . . . . . . . . . . . 485 517
8.00%, 8/1/19 . . . . . . . . . . . . . . . . . . 230 246
6.70%, 8/1/25 * . . . . . . . . . . . . . . . . . 1,000 1,019
California Pollution Control Fin. Auth.,
Pacific Gas & Electric, 8.20%, 12/1/18 . . . . . . . . 2,000 2,166
(MBIA Insured), 5.85%, 12/1/23 *. . . . . . . . . 2,000 1,917
Southern California Edison, VRDN
(Currently 3.45%). . . . . . . . . . . . . . . . . . 100 100
(AMBAC Insured), 6.85%, 12/1/08 . . . . . . . . . 1,000 1,074
California Public Works Board, Dept. of Corrections,
6.875%, 11/1/14. . . . . . . . . . . . . . . . . . . . 1,000 1,064
(MBIA Insured), 5.375%, 12/1/19 . . . . . . . . . 1,000 915
Univ. of California, 5.50%, 6/1/14 . . . . . . . . . 3,800 3,515
(AMBAC Insured), 6.40%, 12/1/16 . . . . . . . . . 1,000 1,035
Univ. of California, Berkley Life Sciences, 7.60%,
3/1/09 (Pre-refunded 3/1/98!). . . . . . . . . . . . 1,250 1,378
California Statewide Communities Dev. Auth.,
Sutter Health, COP,(MBIA Insured),
5.50%, 8/15/23 . . . . . . . . . . . . . . . . . . . . 2,000 1,847
Castaic Lake Water Agency, Water System Improvement,
COP, (MBIA Insured), 7.00%, 8/1/12 . . . . . . . . . . 1,000 1,153
7.00%, 8/1/13 . . . . . . . . . . . . . . . . . . 1,700 1,962
Castaic Union School Dist., GO, (FGIC Insured),
Zero Coupon, 5/1/18. . . . . . . . . . . . . . . . . . 6,675 1,665
Central Coast Water Auth., State Water Project
Regional Fac., (AMBAC Insured),
6.60%, 10/1/22 . . . . . . . . . . . . . . . . . . . . 1,000 1,050
Contra Costa Water Dist., 7.625%, 10/1/08
(Pre-refunded 10/1/98!). . . . . . . . . . . . . . . . 500 561
Corona Redev. Agency, Tax Allocation, (FGIC Insured),
6.25%, 9/1/13. . . . . . . . . . . . . . . . . . . . . 1,000 1,030
Cupertino, COP, 5.75%, 1/1/16. . . . . . . . . . . . . 4,000 3,767
East Bay Municipal Utility Dist., Water System,
6.00%, 6/1/12. . . . . . . . . . . . . . . . . . . . . 2,000 2,002
Foothill / Eastern Transportation Corridor Agency,
California Toll Road, Zero Coupon, 1/1/17. . . . . . . 4,000 897
Amount Value
_______ _______
Fresno HFA, Holy Cross Health Systems, (MBIA
Insured), 5.625%, 12/1/15. . . . . . . . . . . . . . $ 1,000 $ 957
Fresno Joint Powers Fin. Auth, 5.75%, 9/2/98 . . . . . 1,000 1,011
Inglewood Redev. Agency, Century Redev., 6.125%,
7/1/23 . . . . . . . . . . . . . . . . . . . . . . . . 2,200 2,036
Irvine Public Fac. & Infrastructure Auth., VRDN
(Currently 3.75%). . . . . . . . . . . . . . . . . . . 800 800
Irvine Ranch Water Dist., Capital Improvement,
VRDN (Currently 3.35%) . . . . . . . . . . . . . . . . 200 200
Kern County Union High School Dist., GO,
(MBIA Insured), 7.00%, 8/1/10. . . . . . . . . . . . . 1,000 1,153
Long Beach Harbor, 7.25%, 5/15/19 *. . . . . . . . . . 2,500 2,651
Los Angeles, Wastewater System, 7.10%, 6/1/18. . . . . 1,000 1,093
Los Angeles County, Civic Center Heating &
Refrigerating Plant, COP, 8.00%,
6/1/10 (Pre-refunded 6/1/98!). . . . . . . . . . . . . 500 558
Marina del Rey, COP, 6.50%, 7/1/08 . . . . . . . . . 1,000 1,000
Los Angeles County Metropolitan Trans. Auth.,
Sales Tax, 7.40%, 7/1/15 . . . . . . . . . . . . . . . 515 567
(AMBAC Insured), 5.00%, 7/1/25. . . . . . . . . . 2,500 2,170
Los Angeles County Sanitation Dist. Fin. Auth.,
5.375%, 10/1/13. . . . . . . . . . . . . . . . . . . . 2,750 2,576
5.25%, 10/1/19. . . . . . . . . . . . . . . . . . 1,000 902
Los Angeles Dept. of Water & Power,
(MBIA Insured), 5.375%, 9/1/23 . . . . . . . . . . . . 1,000 913
Los Angeles Harbor Dept., 7.60%, 10/1/18
(Escrowed to Maturity) . . . . . . . . . . . . . . . . 3,000 3,380
6.625%, 8/1/19 *. . . . . . . . . . . . . . . . . 2,500 2,584
Los Angeles Municipal Improvement Corp., Central
Library, 6.35%, 6/1/20 . . . . . . . . . . . . . . . . 1,500 1,467
Mt. Diablo Hosp. Dist., (AMBAC Insured), 8.00%,
12/1/11 (Pre-refunded 12/1/00!). . . . . . . . . . . . 1,250 1,480
Newport Beach, Hoag Memorial Hosp. Presbyterian,
VRDN (Currently 3.45%) . . . . . . . . . . . . . . . . 1,100 1,100
Northern California Transmission Agency,
California-Oregon Transmission,
(MBIA Insured), 5.50%, 5/1/14. . . . . . . . . . . . . 1,220 1,162
6.00%, 5/1/24 . . . . . . . . . . . . . . . . . . 1,405 1,405
Oakland, COP, VRDN (Currently 3.75%) . . . . . . . . . 1,000 1,000
Special Refunding (Pension Financing), GO,
(FGIC Insured), 7.60%, 8/1/21. . . . . . . . . . . . 3,500 3,885
Orange County, COP, 7.625%, 6/1/19
(Pre-refunded 6/1/99!) . . . . . . . . . . . . . . . . 1,750 1,974
Orange County Local Trans. Auth., Sales Tax,
(AMBAC Insured), 6.00%, 2/15/09. . . . . . . . . . . . 750 761
Pittsburg PFA, Wastewater, (FGIC Insured),
5.375%, 6/1/22 . . . . . . . . . . . . . . . . . . . . 1,000 915
Port of Oakland, (BIGI Insured), 7.25%,
11/1/16. . . . . . . . . . . . . . . . . . . . . . . . 1,600 1,709
Riverside County, Desert Justice Fac., COP,
(MBIA Insured), 6.00%, 12/1/12 . . . . . . . . . . . . 1,000 1,007
Sacramento County, Public Fac., Coroner Crime
Laboratory, COP, (AMBAC Insured),
6.375%, 10/1/14. . . . . . . . . . . . . . . . . . . . 1,000 1,035
Telecommunications Systems, COP, VRDN
(Currently 3.35%). . . . . . . . . . . . . . . . . . 200 200
Sacramento Municipal Utility Dist., Electric,
(FGIC Insured), 5.25%, 11/15/12. . . . . . . . . . . . 785 738
(MBIA Insured), 6.25%, 8/15/10. . . . . . . . . . 2,300 2,469
San Bernardino County, West Valley Detention
Center, 7.70%, 11/1/18
Pre-refunded 11/1/98!). . . . . . . . . . . . . . 500 563
San Diego IDR, San Diego Gas & Electric,
(MBIA Insured), 6.40%, 9/1/18. . . . . . . . . . . . . 1,175 1,211
Amount Value
_______ _______
San Diego PFA, Sewer, (AMBAC Insured),
5.25%, 5/15/20 . . . . . . . . . . . . . . . . . . . $ 675 $ 608
San Francisco Bay Area Rapid Transit, Dist.
Sales Tax, (FGIC Insured), 5.50%, 7/1/20 . . . . . . . 3,500 3,305
San Francisco City & County, Airport Revenue,
(AMBAC Insured), 6.50%, 5/1/18 * . . . . . . . . . . . 3,000 3,121
(FGIC Insured), 6.30%, 5/1/25 * . . . . . . . . . 2,000 2,016
Public Utility Commission, 8.00%, 11/1/11. . . . . . 1,000 1,097
San Joaquin Hills Trans. Corridor Agency, Toll
Road, Zero Coupon, 1/1/00. . . . . . . . . . . . . . . 1,500 1,127
Santa Clara County Fin. Auth., VMC Fac.,
(AMBAC Insured), 7.75%, 11/15/11 . . . . . . . . . . . 1,000 1,226
Santa Clara Redev. Agency, Bayshore North,
(AMBAC Insured), 7.00%, 7/1/10 . . . . . . . . . . . . 3,000 3,469
Santa Margarita/Dana Point Auth., (MBIA Insured),
7.25%, 8/1/10. . . . . . . . . . . . . . . . . . . . . 1,000 1,173
Santa Monica Unified School Dist., GO, 5.50%,
8/1/15 . . . . . . . . . . . . . . . . . . . . . . . . 2,000 1,898
South Orange County PFA, (MBIA Insured), 7.00%,
9/1/07 . . . . . . . . . . . . . . . . . . . . . . . . 2,000 2,301
Southern California Public Power Auth., 6.75%,
7/1/10 . . . . . . . . . . . . . . . . . . . . . . . . 2,100 2,242
6.00%, 7/1/12 . . . . . . . . . . . . . . . . . . 1,000 970
6.75%, 7/1/12 . . . . . . . . . . . . . . . . . . 1,700 1,817
Torrance, Little Company of Mary Hosp., 6.875%,
7/1/15 . . . . . . . . . . . . . . . . . . . . . . . . 1,330 1,384
Tri City Hosp. Dist., Oceanside Hosp., (MBIA Insured),
7.50%, 2/1/17. . . . . . . . . . . . . . . . . . . . . 2,000 2,263
Univ. of California, Parking System., 7.75%, 11/1/16
(Pre-refunded 11/1/96!). . . . . . . . . . . . . . . . 250 266
_____________________________________________________________________________
PUERTO RICO - 1.5%
Puerto Rico Electric Power Auth., 7.00%,
7/1/21 . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,095
Puerto Rico Ind., Med., Higher Ed. & Environmental
Pollution Control Fac. Fin. Auth., Catholic Univ.
of Puerto Rico, 5.60%, 12/1/07 . . . . . . . . . . . . 1,000 1,010
Total Investments in Securities -
98.9% of Net Assets (Cost $129,837) . . . . . . . . . $ 135,861
Futures Contracts
Contract Unrealized
Expiration Value Gain (Loss)
________ _______ _________
Short, 30 U.S.
Treasury thirty-year
contracts, $3,000,000
of Municipal Bonds
pledged as initial
margin . . . . . . . . . . .12/95 $ (3,401) $ (21)
Net payments (receipts) of variation
margin to date. . . . . . . . 7
_________
Variation margin receivable (payable) on open
futures contracts . . . . . . (14)
Other Assets Less Liabilities . 1,537
_____
Net Assets Consist of: Value Value
_______ _______
Accumulated net investment income -
net of distributions. . . . . . . . . . . . . . . . .$ 4
Accumulated net realized gain/loss -
net of distributions. . . . . . . . . . . . . . . . . (2,603)
Net unrealized gain (loss) . . . . . . . . . . . . . . . 6,003
Paid-in-capital applicable to 13,517,248 shares of
no par value shares of beneficial interest
outstanding; unlimited number of
shares authorized . . . . . . . . . . . . . . . . . . 133,980
________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $ 137,384
_______
_______
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . $ 10.16
______
______
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BIGI Bond Investors Guaranty Insurance
COP Certificates of Participation
EFA Educational Facility Authority
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Health Facility Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance Corp.
PFA Public Facility Authority
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price California Tax-Free Income Trust/ Six Months Ended August 31,
1995 (Unaudited)
(in thousands)
Money Fund Bond Fund
___________ ___________
INVESTMENT INCOME
Interest income. . . . . . . . . . . $ 1,408 $ 4,148
___________ ___________
Expenses
Investment management. . . . . . 84 299
Custody and accounting . . . . . 52 59
Shareholder servicing. . . . . . 45 56
Legal and audit. . . . . . . . . 7 7
Registration . . . . . . . . . . 4 1
Trustees . . . . . . . . . . . . 3 3
Prospectus and shareholder reports 2 2
Miscellaneous. . . . . . . . . . 2 3
___________ ___________
Total expenses . . . . . . . . . . . 199 430
___________ ___________
Net investment income. . . . . . . . 1,209 3,718
___________ ___________
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities . . . . . . . . . . . 15 937
Futures. . . . . . . . . . . . . - 46
___________ ___________
Net realized gain (loss) . . . . . . 15 983
___________ ___________
Change in net unrealized gain or
loss on:
Securities . . . . . . . . . . . 24 1,260
Futures. . . . . . . . . . . . . - (21)
___________ ___________
Change in net unrealized gain
or loss. . . . . . . . . . . 24 1,239
___________ ___________
Net realized and unrealized
gain (loss). . . . . . . . . . . 39 2,222
___________ ___________
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS. . . . . . . . . $ 1,248 $ 5,940
___________ ___________
___________ ___________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price California Tax-Free Income Trust (Unaudited)
<TABLE>
<CAPTION>
(in thousands)
Money Fund Bond Fund
____________________________________________
Six Months
Ended Year Ended
Aug. 31, 1995 Feb. 28, 1995
___________ ___________
INCREASE (DECREASE) IN NET ASSETS FROM
<S> <C> <C> <C> <C>
Operations
Net investment income. . . . . . . . . . . .$ 1,209 $ 1,966 $ 3,718 $ 7,507
Net realized gain (loss) . . . . . . . . . . 14 (97) 983 (3,509)
Change in net unrealized gain or loss. . . . 25 (20) 1,239 (3,009)
_______ _______ _______ _______
Increase (decrease) in net assets
from operations. . . . . . . . . . . . . . . 1,248 1,849 5,940 989
_______ _______ _______ _______
Distributions to shareholders
Net investment income. . . . . . . . . . . . (1,209) (1,966) (3,718) (7,507)
Net realized gain on investments . . . . . . - - - (284)
_______ _______ _______ _______
Decrease in net assets
from distributions . . . . . . . . . . . . (1,209) (1,966) (3,718) (7,791)
Capital share transactions*
Shares sold. . . . . . . . . . . . . . . . . 26,616 94,040 12,140 25,265
Distributions reinvested . . . . . . . . . . 1,103 1,810 2,557 5,456
Shares redeemed. . . . . . . . . . . . . . .(33,602) (93,460) (11,488) (43,902)
_______ _______ _______ _______
Increase (decrease) in net assets from
capital share transactions . . . . . . . . (5,883) 2,390 3,209 (13,181)
_______ _______ _______ _______
Increase (decrease) in net assets. . . . . . . . (5,844) 2,273 5,431 (19,983)
NET ASSETS
Beginning of period. . . . . . . . . . . . . . . 76,289 74,016 131,953 151,936
_______ _______ _______ _______
End of period. . . . . . . . . . . . . . . . . .$ 70,445 $76,289 $137,384 $131,953
_______ _______ _______ _______
_______ _______ _______ _______
*Share information
Shares sold. . . . . . . . . . . . . . . . . 26,616 94,040 1,205 2,578
Distributions reinvested . . . . . . . . . . 1,103 1,810 254 556
Shares redeemed. . . . . . . . . . . . . . . (33,602) (93,460) (1,141) (4,498)
_______ _______ _______ _______
Increase (decrease) in shares
outstanding. . . . . . . . . . . . . . . . (5,883) 2,390 318 (1,364)
_______ _______ _______ ________
_______ _______ _______ ________
The accompanying notes are an integral part of these financial statements.
</TABLE>Notes To Financial Statements
T. Rowe Price California Tax-Free Income Trust / August 31, 1995 (Unaudited)
Note 1 - Significant Accounting Policies
T. Rowe Price California Tax-Free Income Trust (the Trust) is registered under
the Investment Company Act of 1940. The California Tax-Free Money Fund (the
Money Fund) and the California Tax-Free Bond Fund (the Bond Fund),
non-diversified, open-end management investment companies, are the two
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 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) Other - Purchases and sales of portfolio securities for the Bond Fund,
other than short-term securities, aggregated $46,328,000 and $42,122,000,
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 Money Fund has unused realized capital loss carryforwards for
federal income tax purposes of $45,000; $19,000 of which expire in 1997, and
$26,000 in 1998. The Bond Fund has unused realized capital loss carryforwards
for federal income tax purposes of $3,204,000 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
$66,871,000 and $129,837,000, respectively. Net unrealized gain (loss) on
investments was as follows:
Money Fund Bond Fund
___________ ___________
Appreciated Investments $ 5,000 $ 6,190,000
Depreciated Investments (5,000) (166,000)
____________ ____________
Net Unrealized Gain (Loss) $ - $ 6,024,000
____________ ____________
____________ ____________
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 $50,000 was payable at August 31, 1995 by the Money
and Bond funds, 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,
$76,000 of management fees were not accrued by the Money Fund for the six
months ended August 31, 1995. Pursuant to a prior agreement, $404,000 and
$256,000 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 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 Money and Bond funds incurred
expenses pursuant to these related party agreements totaling approximately
$71,000 and $81,000, respectively, for the six months ended August 31, 1995,
of which $14,000 and $16,000, respectively, were payable at period-end.
Financial Highlights
T. Rowe Price California Tax-Free Money Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
__________________________________________________________
Year Ended
Six Months _________________________________________________
Ended Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
August 31,
1995 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD. . . .$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
______ ______ ______ ______ ______ ______
Investment Activities
Net investment income. . . 0.017* 0.025* 0.019* 0.023* 0.035* 0.046*
Distributions
Net investment income. . . (0.017) (0.025) (0.019) (0.023) (0.035) (0.046)
_____ _____ _____ _____ _____ _____
_____ _____ _____ _____ _____ _____
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% 2.55% 1.92% 2.31% 3.55% 4.73%
Ratio of Expenses
to Average Net Assets. . . 0.55%!* 0.55%* 0.55%* 0.55%* 0.55%* 0.71%*
Ratio of Net
Investment Income to
Average Net Assets . . . . 3.33%! 2.51% 1.90% 2.29% 3.50% 4.64%
Net Assets,
End of Period
(in thousands) . . . . . .$ 70,445 $76,289 $74,016 $66,617 $70,302 $82,408
<FN>
! Annualized.
* Excludes expenses in excess of a 0.55% voluntary expense limitation in effect November 7, 1990
through February 28, 1995.
</FN>
</TABLE>
Financial Highlights
T. Rowe Price California Tax-Free Bond Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
______________________________________________________________
Year Ended
Six Months _________________________________________________
Ended Feb. 28, Feb. 28, Feb. 28, Feb. 29, Feb. 28,
August 31,
1995 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD. . . .$ 10.00 $ 10.43 $ 10.65 $ 9.85 $ 9.51 $ 9.39
______ ______ ______ ______ ______ ______
Investment Activities
Net investment income. . . 0.28* 0.55* 0.56* 0.57* 0.59* 0.58*
Net realized and
unrealized gain
(loss) . . . . . . . . . 0.16 (0.41) 0.01 0.80 0.34 0.12
______ ______ ______ ______ ______ ______
Total from Investment
Activities . . . . . . . . 0.44 0.14 0.57 1.37 0.93 0.70
Distributions
Net investment
income . . . . . . . . . (0.28) (0.55) (0.56) (0.57) (0.59) (0.58)
Net realized gain. . . . . - (0.02) (0.23) - - -
______ ______ ______ ______ ______ ______
Total Distributions. . . . . (0.28) (0.57) (0.79) (0.57) (0.59) (0.58)
______ ______ ______ ______ ______ ______
NET ASSET VALUE,
END OF PERIOD. . . . . . .$ 10.16 $ 10.00 $ 10.43 $ 10.65 $ 9.85 $ 9.51
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
RATIOS / SUPPLEMENTAL DATA
Total Return . . . . . . . . 4.43% 1.60% 5.37% 14.41% 10.05% 7.84%
Ratio of Expenses to Average
Net Assets . . . . . . . . 0.63%! 0.60%* 0.60%* 0.60%* 0.60%* 0.73%*
Ratio of Net Investment
Income to Average
Net Assets . . . . . . . . 5.48%! 5.60% 5.19% 5.69% 6.07% 6.29%
Portfolio Turnover
Rate . . . . . . . . . . . 66.3%! 78.0% 73.4% 57.5% 80.3% 192.7%
Net Assets,
End of Period
(in thousands) . . . . . .$ 137,384 $ 131,953 $ 151,936 $ 143,973 $ 108,494 $ 84,375
<FN>
! Annualized.
* Excludes expenses in excess of 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.
Graph: California Yield Indexes. A graph which shows the performance of the
California Bond Index and the California Money Index for the period from
8/31/94 to 8/31/95.
