- --------------------------------------------------------------------------------
T. Rowe Price
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Semiannual Report
Spectrum Funds
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June 30, 1996
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Report Highlights
* The stock market continued to advance in the first half, buoyed by
strong inflows into equity mutual funds, while bonds retreated in the
face of a strengthening economy and higher inflation.
* Spectrum Growth returned 9.79% for the six months ended June 30 and
24.94% for the 12-month period, outpacing its peer group in both
periods.
* Spectrum Income posted a small gain for the half, in contrast to many
bond funds, and outperformed its peer group. For the 12-month period,
the fund posted a respectable gain and again outpaced its peers.
* Spectrum Growth benefited from its exposure to small-cap and
inflation-resistant stocks. Spectrum Income was helped by holdings of
high-yield bonds and stocks.
* Domestic stocks and bonds could encounter further weakness in coming
months. International bonds may be hampered by a strong dollar. We
believe foreign stocks offer the best relative value.
Fellow Shareholders
The stock market advance kept rolling, but bonds hit a wall over the last
six months. A surprisingly resilient economy and inflation fears sparked a sharp
rise in interest rates, driving down bond prices. Stocks, shrugging off the
reversal in rates, were powered by sustained profit growth and robust inflows
into equity mutual funds.
The broad diversification of the Spectrum Funds helped minimize the impact
of volatility on both stock and bond market performance. Spectrum Growth Fund
produced a solid 9.79% gain for the first half, while Spectrum Income Fund eked
out a small gain, averting the losses suffered by most bond funds.
<PAGE>
Market Environment
After rising in tandem during 1995, the stock and bond markets veered in
different directions this year against a backdrop of confusing economic signals.
As the year got under way, GDP growth appeared to be weakening, inflation was
subdued, and interest rates were falling, inciting fears of a recession. The
picture reversed quickly, however, when the economy showed unexpected strength,
growing at an annualized rate of 2.3% in the first quarter and an estimated 4%
in the second. Meanwhile, signs of inflation surfaced in rising oil and grain
prices and, most troubling, wage costs. As a result, interest rates rose
sharply. The yield on the benchmark 30-year Treasury bond yield jumped more than
one percentage point during the half to above 7%.
The stock market ignored the rising rates, posting impressive gains, though
more modest than those of last year. The broad Standard & Poor's 500 Index
gained 10.10% in the first half, buoyed by sustained corporate earnings growth
(although slowing in some industries) and especially by the unprecedented flow
of money into equity mutual funds.
[Edgar description: A 3-line chart showing interest rates on the 30-year
treasury bond, 5-year treasury note, and 90-day Treasury bill from 12/31/95
through 6/30/96.]
Growth stocks outperformed their value-oriented counterparts, and
small-capitalization companies nosed out large-caps. Consumer-oriented stocks
did well, led by a rebound in the retailing industry, as consumer spending
increased. After peaking in May, stocks came under selling pressure in June and
into July when investors grew concerned about high valuations and some earnings
disappointments.
A number of foreign stocks posted strong gains, led by a robust recovery in
Latin America, where valuations were among the most attractive in the world. The
best returns in Europe came from smaller markets such as Italy and the
Scandinavian countries, while the U.K., the largest market, managed only a small
gain in U.S. dollar terms. In general, foreign equity returns to U.S. investors
were dampened by a strengthening of the dollar against most major currencies.
Most sectors of the bond market showed negative returns in the half as
interest rates rose sharply. Treasuries and other high-quality bonds, which are
the most vulnerable to interest rate movements, were hardest hit. Corporate and
mortgage-backed securities, which offer higher levels of income and are more
attractive in a strengthening economy, performed slightly better than
Treasuries. The best-performing sector was high-yield bonds, which tend to trade
more like stocks than bonds in a robust economic environment. The Lehman
Aggregate Bond Index declined 1.21%.
The strengthening dollar also dealt a blow to international bonds,
resulting in negative returns to U.S. investors. For the half, the Salomon World
Government Bond Index (excluding the U.S.) declined 1.30%.
<PAGE>
Performance and Strategy Review
Spectrum Growth Fund
Although the first half of 1996 was bumpier than last year, your well-
diversified fund posted a solid gain, outpacing its Lipper peer group average.
For the 12-month period ended June 30, the fund outperformed its competitors by
an even wider margin and provided an excellent absolute return.
================================================================================
Performance Comparison
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Periods Ended 6/30/96 6 Months 12 Months
Spectrum Growth Fund 9.79% 24.94%
Lipper Growth & Income
Fund Index 8.67 22.12
- --------------------------------------------------------------------------------
The fund benefited from small-cap outperformance through its 17.5% position
in the New Horizons Fund, which gained 12.88% in the half. (Our allocations to
each of the underlying funds is shown in the table following this letter.)
However, these stocks were among the hardest hit in the recent market pullback,
and we will be keeping a close eye on our small-cap exposure in coming months.
The New Era Fund (13% of net assets) also performed well with its focus on
stocks that offer a hedge against rising inflation.
[Edgar description: Pie charting showing Security Diversification on 6/30/96 for
the Spectrum Growth Fund: Money Market 8%, Domestic Stocks 60%, International
Stocks 31%, Bonds 1%]
We maintained a maximum 20% allocation to the International Stock Fund,
keeping our total foreign equity exposure at 31% of assets, as shown in the pie
chart. While continuing to lag U.S. stock returns partly because of the
strengthening dollar, foreign equities began to close the gap during the last
six months. Furthermore, our foreign holdings can offer protection against a
possible correction in U.S. stocks since overseas markets tend to move in
different directions from the domestic market. Many foreign economies are in
earlier stages of economic recovery than the U.S., and stocks are trading at
more attractive valuations. Overall, we see better value right now in foreign
stocks.
Performance and Strategy Review
Spectrum Income Fund
Spectrum Income's exposure to high-yield bonds and to stocks helped it
avoid the first half losses suffered by most bond funds. For the six months
ended June 30, your fund squeezed out a small gain and held an edge over its
peer group. For the 12-month period, fueled by last year's stock and bond rally,
the fund posted a respectable gain and again outpaced its competitor fund's
average.
<PAGE>
================================================================================
Performance Comparison
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Periods Ended 6/30/96 6 Months 12 Months
Spectrum Income Fund 1.02% 8.08%
Lipper General Bond
Funds Average 0.60 7.35
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In January, Spectrum Income's Board of Directors declared a long-term
capital gain distribution of $0.01 per share, which was paid January 30 to
shareholders of record on January 26. In January 1997, you will receive your
Form 1099-DIV reporting this distribution for tax purposes.
As shown in the table following this letter, our exposure to the High Yield
Fund remained near its upper limit at 19.5% of net assets, helping Spectrum
Income benefit from the outperformance of low-quality bonds as the economy
strengthened. The High Yield Fund gained 3.47% in the six months ended June 30.
(High-yield bonds are typically more sensitive to the economy than to changes in
interest rates). The Equity Income Fund, our main vehicle for diversification
away from strictly fixed income investments, also helped fund performance as its
stock holdings generally performed well. The fund gained 8.09% for the half.
[Edgar description: Pie charting showing Security Diversification on 6/30/96 for
the Spectrum Income Fund: Money markets 8%, High-Grade Bonds 50%, High-Yield
Bonds 18%, International Bonds 9%, Stocks 15%]
We increased our exposure to the GNMA Fund from 17.5% of assets in December
to the fund limit of 20% as of June 30. The mortgage-backed securities in this
fund generally outperformed Treasuries because they offer a higher level of
income and are slightly less vulnerable to rising interest rates. Given the
continued strength of the dollar, which dampens the return to U.S. investors on
foreign assets, we trimmed our exposure to international bonds to 9%, as shown
in the chart. Otherwise, we made few changes to Spectrum Income's overall
security diversification.
Outlook
The strength of the economy generally surprised the financial markets. The
concern now is whether the economy is growing too fast, raising the specter of a
pickup in inflation. As always, the bond market considered the prospect of
accelerating inflation daunting, as interest rates rose significantly since late
last year.
In our view, it is possible that the bond market may experience further
weakness in the months ahead, although the recent rise in yields may have
discounted much of the news on the inflation front. We believe bond returns for
the rest of the year will more likely come from income than from price
appreciation. As for stocks, the domestic market has continued to climb, but
with sharp volatility, especially after the end of the reporting period.
Corporate earnings have been strong, but if interest rates continue to rise and
wage inflation becomes an issue, profits could suffer.
<PAGE>
Foreign equity markets appear to offer good value at this time. The
European economic cycle is behind that of the U.S., allowing further sustainable
growth. We expect overall growth in foreign markets to continue. On the other
hand, foreign bond returns to U.S. investors may continue to be hampered by
rising U.S. rates and a strong dollar.
The Spectrum Funds were well served by their broad diversification this
year, especially in a difficult bond market. We believe this strategy will
continue to provide attractive long-term returns with less volatility than more
concentrated portfolios.
Respectfully submitted,
[Signature]
Peter Van Dyke
President and
Chairman of the Investment Advisory Committee
July 19, 1996
================================================================================
Portfolio Highlights
================================================================================
TARGET ALLOCATIONS FOR UNDERLYING FUND
Minimum- Target at
Maximum 6/30/96
Spectrum Growth Fund
Prime Reserve .................................. 0-25% 0.0%
Equity Income .................................. 5-20 14.0
Growth & Income ................................ 5-20 12.5
Growth Stock ................................... 15-30 23.0
New Era ........................................ 10-25 13.0
International Stock ............................ 5-20 20.0
New Horizons ................................... 10-25 17.5
Spectrum Income Fund
Prime Reserve Fund ............................. 5-30% 5.0%
Short-Term Bond Fund ........................... 0-15 0.0
GNMA Fund ...................................... 5-20 20.0
New Income Fund ................................ 15-30 30.0
High Yield Fund ................................ 10-25 19.5
International Bond Fund ........................ 5-20 9.0
Equity Income Fund ............................. 10-25 16.5
- --------------------------------------------------------------------------------
<PAGE>
================================================================================
Portfolio Highlights
================================================================================
TEN LARGEST HOLDINGS
Percent of
(Of the combined underlying funds at 6/30/96) Net Assets
6/30/96
Spectrum Growth Fund
Royal Dutch Petroleum .................................................. 1.1%
GE ..................................................................... 0.9
U.S. Treasury Issues ................................................... 0.7
Atlantic Richfield ..................................................... 0.7
Great Lakes Chemical ................................................... 0.7
Corning ................................................................ 0.6
Mobil .................................................................. 0.6
Freddie Mac ............................................................ 0.5
Newmont Mining ......................................................... 0.5
Elsevier ............................................................... 0.4
Total ................................................................... 6.7%
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KEY STATISTICS
12/31/95 6/30/96
Spectrum Income Fund
Price Per Share ........................................ $11.24 $10.99
Dividends Per Share
For 6 months ...................................... 0.36 0.35
For 12 months ..................................... 0.72 0.71
Dividend Yield *
For 6 months ...................................... 6.57% 6.49%
For 12 months ..................................... 6.86 6.64
Weighted Average Maturity (years) ** ................... 8.1 8.3
Weighted Average Effective Duration (years) ** ......... 4.3 3.9
Weighted Average Quality *** ........................... AA- AA-
================================================================================
* 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.
** Excludes Equity Income Fund.
*** Based on T. Rowe Price research; excludes Equity Income Fund.
- --------------------------------------------------------------------------------
<PAGE>
================================================================================
Performance Comparison
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These charts show the value of a hypothetical $10,000 investment in each
fund over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index.
The index return does not reflect expenses, which have been deducted from the
fund's return.
[SEC Charts for Spectrum Growth Fund and Spectrum Income Fund Shown Here]
================================================================================
Average Annual Compound Total Return
- --------------------------------------------------------------------------------
This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
================================================================================
Since Inception
Periods Ended 6/30/96 1 Year 5 Years Inception Date
Spectrum Growth Fund 24.94% 16.28% 13.97% 6/29/90
Spectrum Income Fund 8.08 9.71 9.88 6/29/90
- --------------------------------------------------------------------------------
Investment return represents past performance and will vary. Shares of the
funds may be worth more or less at redemption than at original purchase.
- --------------------------------------------------------------------------------
<PAGE>
Unaudited For a share outstanding throughout each period
<TABLE>
================================================================================================================
Financial Highlights
Spectrum Growth Fund
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
6 Months Year
Ended Ended
6/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
NET ASSET VALUE
Beginning of period ....... $ 13.49 $ 11.13 $ 11.87 $ 10.54 $ 10.53 $ 8.52
Investment activities
Income distributions
received ............. 0.05 0.21 0.17 0.16 0.20 0.21
Net realized and
unrealized gain (loss) 1.27 3.12 (0.01) 2.05 0.56 2.33
Total from
investment activities 1.32 3.33 0.16 2.21 0.76 2.54
Distributions
Income ............... -- (0.21) (0.17) (0.16) (0.20) (0.21)
Net realized gain .... -- (0.76) (0.73) (0.72) (0.55) (0.32)
Total distributions .. -- (0.97) (0.90) (0.88) (0.75) (0.53)
NET ASSET VALUE
End of period ........... $ 14.81 $ 13.49 $ 11.13 $ 11.87 $ 10.54 $ 10.53
Ratios/Supplemental Data
Total return ............ 9.79% 29.96% 1.40% 20.98% 7.24% 29.87%
Ratio of expenses to
average net assets ...... 0.00%* 0.00% 0.00% 0.00% 0.00% 0.00%
Ratio of net investment
income to average
net assets .............. 0.74%+ 1.81% 1.60% 1.57% 2.15% 2.77%
Portfolio turnover rate . 1.7%+ 7.4% 20.7% 7.0% 7.9% 14.6%
Net assets, end of period
(in millions) ........... $ 1,804 $ 1,358 $ 879 $ 585 $ 355 $ 149
- ----------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
* See Note 4: The annualized weighted average expense ratio of the
underlying funds was 0.83% for the six months ended June 30, 1996.
- ----------------------------------------------------------------------------------------------------------------
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Unaudited For a share outstanding throughout each period
<TABLE>
================================================================================================================
Financial Highlights
Spectrum Income Fund
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
6 Months Year
Ended Ended
6/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
NET ASSET VALUE
Beginning of period .......... $ 11.24 $ 10.11 $ 11.11 $ 10.70 $ 10.73 $ 9.77
Investment activities
Income distributions
received ................ 0.35 0.72 0.69 0.69 0.76 0.82
Net realized and
unrealized gain (loss) .. (0.24) 1.16 (0.90) 0.60 0.05 1.03
Total from
investment activities ... 0.11 1.88 (0.21) 1.29 0.81 1.85
Distributions
Income .................. (0.35) (0.72) (0.69) (0.69) (0.76) (0.83)
Net realized gain ....... (0.01) (0.03) (0.10) (0.19) (0.08) (0.06)
Total distributions(0.36) (0.75) (0.79) (0.88) (0.84) (0.89)
NET ASSET VALUE
End of period ................. $ 10.99 $ 11.24 $ 10.11 $ 11.11 $ 10.70 $ 10.73
Ratios/Supplemental Data
Total return .................. 1.02% 19.41% (1.94)% 12.36% 7.84% 19.64%
Ratio of expenses to
average net assets ............ 0.00%* 0.00% 0.00% 0.00% 0.00% 0.00%
Ratio of net investment
income to average
net assets .................... 6.40%+ 6.43% 6.48% 6.19% 7.10% 8.03%
Portfolio turnover rate ....... 21.0%+ 20.2% 23.1% 14.4% 14.2% 18.8%
Net assets, end of period
(in millions) ................. $ 1,195 $ 987 $ 625 $ 588 $ 376 $ 148
- ----------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
* See Note 4. The annualized weighted average expense ratio of the
underlying funds was 0.79% for the six months ended June 30, 1996.
- ----------------------------------------------------------------------------------------------------------------
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Unaudited June 30, 1996
================================================================================
Statement of Net Assets
Spectrum Growth Fund
Shares/Par Value
In thousands
T. Rowe Price Growth Stock Fund .................. 16,510,000 $415,061
T. Rowe Price International Stock Fund ........... 27,019,939 363,148
T. Rowe Price New Horizons Fund .................. 13,541,039 313,340
T. Rowe Price Equity Income Fund ................. 11,953,346 253,052
T. Rowe Price New Era Fund ....................... 9,392,339 234,527
T. Rowe Price Growth & Income Fund ............... 10,899,538 226,166
T. Rowe Price Prime Reserve Fund ................. 1,310,327 1,310
Total Investments
100.2% of Net Assets (Cost $1,469,832) 1,806,604
Other Assets Less Liabilities .......................... (2,839)
NET ASSETS ............................................. $ 1,803,765
Net Assets Consist of:
Accumulated net investment income - net of distributions ......... $ 6,383
Accumulated net realized gain/loss - net of distributions ........ 7,043
Net unrealized gain (loss) ....................................... 336,772
Paid-in-capital applicable to 121,790,341 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
Spectrum authorized .............................................. 1,453,567
NET ASSETS ....................................................... $1,803,765
NET ASSET VALUE PER SHARE ........................................ $ 14.81
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
Unaudited June 30, 1996
================================================================================
Statement of Net Assets
Spectrum Income Fund
Shares/Par Value
In thousands
T. Rowe Price New Income Fund .................. 40,997,391 $359,137
T. Rowe Price GNMA Fund ........................ 25,814,371 238,783
T. Rowe Price High Yield Fund .................. 28,914,396 234,207
T. Rowe Price Equity Income Fund ............... 9,327,256 197,458
T. Rowe Price International Bond Fund .......... 10,728,988 108,577
T. Rowe Price Prime Reserve Fund ............... 63,561,621 63,562
T. Rowe Price Short-Term Bond Fund ............. 4,489 21
Total Investments
100.6% of Net Assets (Cost $1,180,310) 1,201,745
Other Assets Less Liabilities .................................. (6,610)
NET ASSETS ..................................................... $ 1,195,135
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions ...... $ 1,856
Net unrealized gain (loss) ..................................... 21,435
Paid-in-capital applicable to 108,718,237 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
Spectrum authorized ............................................ 1,171,844
NET ASSETS ..................................................... $ 1,195,135
NET ASSET VALUE PER SHARE ...................................... $ 10.99
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
Unaudited
================================================================================
Statement of Operations
Spectrum Funds
- --------------------------------------------------------------------------------
In thousands Growth Fund Income Fund
6 Months 6 Months
Ended Ended
6/30/96 6/30/96
Investment Income
Income distributions from Underlying Funds .... $ 5,951 $ 36,773
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Sale of Underlying Funds ...................... 2,691 420
Capital gain distributions
from Underlying Funds ......................... 2,211 1,250
Net realized gain (loss) ...................... 4,902 1,670
Change in net unrealized gain or loss ......... 133,320 (26,792)
Net realized and unrealized gain (loss) ............. 138,222 (25,122)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS .............................. $144,173 $ 11,651
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
Unaudited
=======================================================================================================
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------------------------------
In thousands Growth Fund Income Fund
<CAPTION>
<S> <C> <C> <C> <C>
6 Months Year 6 Months Year
Ended Ended Ended Ended
6/30/96 12/31/95 6/30/96 12/31/95
Increase (Decrease) in Net Assets
Operations
Income distributions ............ $ 5,951 $ 20,218 $ 36,773 $ 55,762
Net realized gain (loss) ........ 4,902 69,661 1,670 4,798
Change in net unrealized
gain or loss .................... 133,320 201,914 (26,792) 86,560
Increase (decrease) in
net assets from operations ...... 144,173 291,793 11,651 147,120
Distributions to shareholders
Net investment income ........... -- (19,785) (36,773) (56,016)
Net realized gain ............... -- (71,595) (993) (4,681)
Decrease in net assets
from distributions .............. -- (91,380) (37,766) (60,697)
Capital share transactions *
Shares sold ..................... 415,683 361,400 393,843 396,188
Distributions reinvested ........ -- 88,268 34,468 54,428
Shares redeemed ................. (114,435) (171,103) (193,762) (175,278)
Increase (decrease) in
net assets from capital
share transactions .............. 301,248 278,565 234,549 275,338
Net Assets
Increase (decrease)
during period ......................... 445,421 478,978 208,434 361,761
Beginning of period ................... 1,358,344 879,366 986,701 624,940
End of period ......................... $1,803,765 $1,358,344 $1,195,135 $986,701
*Share information
Shares sold ..................... 29,121 28,680 35,342 37,162
Distributions reinvested ........ -- 6,614 3,117 5,021
Shares redeeemed ................ (8,018) (13,597) (17,501) (16,229)
Increase (decrease)
in shares outstanding ........... 21,103 21,697 20,958 25,954
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Unaudited June 30, 1996
================================================================================
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Spectrum Fund, Inc. (Spectrum) is registered under the
Investment Company Act of 1940. Spectrum Growth Fund (the Growth Fund) and
Spectrum Income Fund (the Income Fund), nondiversified, open-end management
investment companies, are the two portfolios established by Spectrum and
commenced operations on June 29, 1990. The Growth and Income funds invest in
other mutual funds (the underlying funds) sponsored and managed by T. Rowe Price
Associates, Inc.
Valuation Investments in the underlying funds are valued at the closing net
asset value per share of each underlying fund on the day of valuation.
Other Income and expenses are recorded on the accrual basis. Purchases and
sales of the underlying funds are accounted for on the trade date. Realized
gains and losses are reported on the identified cost basis. Distributions from
the underlying funds and distributions to Spectrum's shareholders are recorded
on the ex-dividend date. Capital gain distributions are determined in accordance
with federal income tax regulations and may differ from those determined in
accordance with generally accepted accounting principles.
NOTE 2 - UNDERLYING FUNDS TRANSACTIONS
Purchases and sales of the underlying funds for the six months ended June
30, 1996, were as follows:
================================================================================
Growth Fund Income Fund
Purchases $323,707,000 $362,589,000
Sales 13,708,000 119,504,000
- --------------------------------------------------------------------------------
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 taxable income.
At June 30, 1996, the aggregate cost of the underlying funds held by the
Growth and Income funds for federal income tax and financial reporting purposes
was $1,469,832,000 and $1,180,310,000, respectively. Net unrealized gain (loss)
of the underlying funds was as follows:
<PAGE>
================================================================================
Growth Fund Income Fund
Appreciated investments $336,772,000 $38,117,000
Depreciated investments - (16,682,000)
Net unrealized gain (loss) $336,772,000 $21,435,000
- --------------------------------------------------------------------------------
NOTE 4 - INVESTMENT MANAGER
The Growth and Income funds are managed by T. Rowe Price Associates, Inc.
(the manager). Each fund operates under a special servicing agreement (the
agreement) between and among Spectrum, the underlying funds, the manager and T.
Rowe Price Services, Inc. The agreement provides that each underlying fund will
bear expenses associated with the operation of Spectrum in proportion to the
average daily value of its shares owned by Spectrum; there are no direct charges
to the Spectrum Funds.
================================================================================
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 Monday through
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T. Rowe Price OnLine Through a personal computer via dial-up modem, you can
replicate all the services available on Tele*Access.
<PAGE>
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* T. Rowe Price Discount Brokerage is a division of T. Rowe Price Investment
Services, Inc. Member NASD/SIPC.
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T. Rowe Price Mutual Funds
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Stock Funds
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Domestic
Balanced
Blue Chip Growth
Capital Appreciation Capital
Opportunity Dividend Growth
Equity Income
Equity Index
Growth & Income
Growth Stock
Health Sciences
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
OTC
Science & Technology
Small-Cap Value*
Spectrum Growth Value
International/Global
Emerging Markets
Stock European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Bond Funds
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Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
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Domestic Tax-Free
California Tax-Free Bond
Florida Insured Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Government Bond
International Bond
Short-Term Global Income
Money Market
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Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
Blended Asset
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
T. Rowe Price No-Load
Variable Annuity
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
*Closed to new investors.
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For yield, price, last transaction,
and current balance, 24 hours,
7 days a week, call:
1-800-638-2587 toll free
For assistance with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution
only to shareholders and to others who have
received a copy of the prospectus of the
T. Rowe Price Spectrum Funds.
T. Rowe Price Investment Services, Inc., Distributor
RPRTSPC 6/30/96
