- --------------------------------------------------------------------------------
T. Rowe Price
- --------------------------------------------------------------------------------
Semiannual Report
Spectrum Funds
- --------------------------------------------------------------------------------
June 30, 1998
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
Spectrum Funds
* Large-cap U.S. growth stocks and European stocks posted outstanding gains,
while domestic bond returns were average. U.S. small-caps and value stocks
trailed, and stocks and bonds elsewhere in the world fared poorly.
* Spectrum Growth delivered double-digit 6- and 12-month returns but lagged
its more narrowly focused peers.
* Spectrum Income continued to enjoy the benefits of diversification,
notching solid returns and maintaining a lead in 12-month performance over
its Lipper benchmark.
* Spectrum International was hurt by exposure to Japanese stocks and to
emerging markets. The fund's 6- and 12-month returns fell short of its peer
group.
* Given the high stock valuations here and in Europe, and uncertain economic
outlooks elsewhere, we believe shareholders will be well served by the
funds' broad diversification.
<PAGE>
FELLOW SHAREHOLDERS
After enjoying strong gains in the first three months of 1998, many global
markets faltered in the second quarter as the Asian economic crisis reared its
head again. However, growth-oriented U.S. blue chips and most European markets
posted solid returns for the quarter and ended the first half with blistering
gains, leaving Asian and emerging markets, and U.S. small-caps and value stocks,
far behind. The domestic bond market provided average returns, with investor
enthusiasm refocused on U.S. Treasuries.
Because each is designed to provide investors with exposure to diverse
sectors of the market, all three Spectrum Funds participated in both the leading
and lagging sectors of their markets. The funds delivered solid returns in an
absolute sense over the past six months, and Spectrum Income Fund led its peer
group over the past 12 months. Both Spectrum Growth Fund and Spectrum
International Fund, however, lagged their Lipper benchmarks over the 6- and
12-month periods.
MARKET ENVIRONMENT
Confounding the skeptics, U.S. stocks as measured by the unmanaged S&P 500
Stock Index continued their breathtaking run in the first half, pausing for
brief corrections in January and in April and May. The positive backdrop of
declining interest rates, strong domestic growth, low unemployment, negligible
inflation, and strong corporate profitability spurred stocks to new records by
early spring, with autumn's Asian economic crisis fading into memory. The crisis
entered a second phase in April, however, and in response many U.S. stocks came
well off their highs for the year. The handful of premier, large-cap growth
companies that dominate the market averages outperformed all others, with the
exception of some technology stocks that surged in late June. Growth generally
outperformed value, and high-dividend stocks lagged. The S&P 500 gained 17.71%
in the first half.
[Edgar Description: chart showing 30-year Treasury Bond, 5-year Treasury
Note, 90-Day Treasury Bill for 12 months ended 6/30/98.]
The resurfacing of the Asian crisis caused a flight to safety in U.S.
Treasuries. Economic weakness abroad convinced investors that the Federal
Reserve would not raise interest rates to cool robust domestic growth. By April,
the 30-year Treasury yield had begun yet another leg downward, falling to a
multi-decade low of 5.65% by the end of June. The domestic bond market, as
measured by the Lehman Brothers Aggregate Bond Index, returned 3.93% in the
first half. Most sectors of the bond market provided decent returns in the
period, though mortgage bonds lagged somewhat as prepayments increased.
High-quality international bonds fared relatively well in the first half in
the face of a stronger U.S. dollar, but emerging market debt fell sharply, more
than erasing first quarter gains and continuing the slide that began late last
year. The J.P. Morgan Non-U.S. Dollar Government Bond Index gained 2.66% in the
first half.
<PAGE>
International stock markets diverged widely in the first six months of the
year, with European stocks outpacing even the strong U.S. market with a 26.67%
gain, as measured by the MSCI Europe Index. The Japanese market fell 2.52%,
other Asian markets fell 16.81%, and Latin America fared the worst, falling
19.80%, according to their respective MSCI regional indices. Overall, the
international markets rose 16.08%, as measured by the MSCI EAFE Index.
SPECTRUM GROWTH FUND
================================================================================
Performance Comparison
- --------------------------------------------------------------------------------
Periods Ended 6/30/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Spectrum Growth Fund ......................... 10.67% 16.94%
Lipper Growth & Income
Fund Index ................................... 11.62 22.14
================================================================================
Your fund returned 10.67% in the first half and 16.94% for the past 12
months. Only large-cap U.S. growth stocks and European stocks have been strong
in the past six months, and your fund's exposure to other segments of the market
necessarily detracted from its comparative performance. Your fund's charter is
to pursue a broadly diversified strategy including investments in small-caps,
large-cap growth and value stocks, international stocks, and natural resource
stocks. As a result, Spectrum Growth Fund lagged the Lipper Growth & Income Fund
Index, which mainly follows the performance of large-cap domestic-oriented funds
(see table on page 2).
The best performers over the 6- and 12-month periods were the Blue Chip
Growth and Growth Stock funds, since investors have continued to favor large-cap
growth stocks. In the first half, the fund's exposure to high-dividend, value
stocks through the Equity Income and Growth & Income funds, ownership of
small-cap growth stocks through the New Horizons Fund, and modest allocation to
the Mid-Cap Value and New Era funds, the latter of which focuses on natural
resource stocks, limited its return. The fund's allocation to the International
Stock Fund, which restrained 12-month performance, provided a modest benefit in
the first half of the year.
[Spectrum Growth Fund Pie chart based on net assets as of 6/30/98, with the
following segments: domestic stocks, 67%; international stocks, 28%; money
markets, 4%; bonds, 1%]
<PAGE>
Your fund's sector allocations changed slightly from the beginning of the
year. We shifted some assets from the Equity Income and Growth & Income funds to
the Blue Chip Growth and Growth Stock funds, which benefited performance. The
portfolio is now more evenly distributed among our core large-cap domestic stock
funds than in the past. We also reduced our allocation to natural resource
stocks. As in 1997, we continued to slightly increase exposure to the New
Horizons Fund, as weak performance by faster-growing small companies and
technology stocks created lower valuations and buying opportunities. Your fund
continued to increase its foreign exposure to take advantage of lower valuations
and now has 28% of net assets in international stocks. Market leadership
worldwide inevitably rotates from one region or group of nations to another, and
from one style of investing to another. We continue to believe that a
diversified strategy including growth and value stocks, large-caps and
small-caps, and foreign and domestic equities will provide long-term benefits to
the patient investor.
SPECTRUM INCOME FUND
================================================================================
Performance Comparison
- --------------------------------------------------------------------------------
Periods Ended 6/30/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Spectrum Income Fund ........................ 4.13% 11.22%
Lipper General Bond
Funds Average ............................... 4.26 9.76
================================================================================
A generally positive bond market in the first half helped the fund achieve
a 4.13% total return, slightly lagging the Lipper General Bond Funds Average
(see table). For the past 12 months, your fund's solid 11.22% total return
continued to outpace its peers. The fund's approximately 15% weighting in the
Equity Income Fund (which focuses on high-dividend stocks) was again positive
for the fund's return, as was its 19% weighting in the High Yield Fund and a
smaller allocation to the U.S. Treasury Long-Term Fund.
The Treasury market, despite declining yields, continued to appeal to
global investors seeking stability and liquidity in dollar-denominated assets.
As the Asian crisis seemed likely to slow U.S. economic growth, investors drove
down long-term Treasury yields, resulting in attractive capital gains for
holders of Treasury bonds. Our position in long-term Treasuries, initiated in
the latter half of last year, continued to prove timely.
High-yield bonds got off to the strongest start in the first quarter, but
added only fractionally to their gains in the second quarter as investors began
to worry about the sustainability of corporate earnings. Still, the High Yield
Fund was our third-best performer in the first half and boosted fund returns.
Earnings worries kept gains in high-quality corporate bonds modest, as
represented by your fund's 30% weighting in the New Income Fund. Rising mortgage
prepayments also limited gains in mortgage bonds, represented by our holding in
the GNMA Fund.
<PAGE>
International bonds were disappointing, and your fund's small position in
the Emerging Markets Bond Fund was a negative contributor in the first half.
Higher-quality international bonds recovered only somewhat from last year's
losses.
[Spectrum Income Fund pie chart, based on net assets as of 6/30/98, with
the following segments: high-grade bonds, 54%; high-yield bonds, 19%; stocks,
14%; international bonds, 10%; money markets, 3%]
We have shifted our asset allocation target slightly since year-end,
reducing exposure to the GNMA Fund to 18.5% from 19.5%, because further declines
in interest rates will spur increased mortgage prepayments, or refinancings. We
also slightly reduced our weighting in the Equity Income Fund to 14%. We are in
the process of shifting all the assets in Summit Cash Reserves, a money market
fund, to the International Bond and Emerging Markets Bond funds to capitalize on
buying opportunities created by lower valuations. Our allocation to long-term
Treasuries, where we now have a 7% weighting, has been increased to take
advantage of declining rates.
SPECTRUM INTERNATIONAL FUND
================================================================================
Performance Comparison
- --------------------------------------------------------------------------------
Periods Ended 6/30/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Spectrum International Fund ................... 10.06% 1.37%
Lipper International
Funds Average ................................. 15.50 8.19
================================================================================
Our 10.06% return for the first six months of the year lagged the 15.50%
gain of the Lipper International Funds Average. Over the past 12 months,
international markets and the Spectrum International Fund have been weak in both
absolute and relative terms. Your fund gained just 1.37% in the past year,
compared with 8.19% for its peers, many of which do not share our 10% weighting
in bonds. Many competing funds also have somewhat less exposure to stocks in
Japan and the rest of Asia.
Though the fund has a healthy 62% allocation to European stocks-the
best-performing equities in the world in the first half-our modest exposure to
declining non-European stocks and to struggling international bonds was enough
to hold down performance. Except for the International Stock and European Stock
funds, our investments in other T. Rowe Price international funds are all near
the lower end of their established ranges.
[Spectrum International Fund pie chart, based on net assets as of 6/30/98,
with the following segments: Europe, 62%; Japan, 17%%; Latin America, 7%, Far
East, 5%; Other and Reserves, 9%]
<PAGE>
The fund's most significant investment remains in the International Stock
Fund, at 50% of assets- a neutral weighting given the fund's established range.
(See table on page 10.) That fund gained 13.71% in the past six months and 4.38%
in the past year. The European Stock Fund, at 22.6%, is our second-largest
investment and is in the high end of its permitted range. Its gains of 24.23%
year-to-date and 30.80% over the past 12 months could not completely offset the
weakness in virtually every other world market.
Our fund allocations remain unchanged from the beginning of the year. While
European stocks are a bit rich after their recent gains, long-term fundamentals
there are solid, especially when compared with the uncertain outlook for the
rest of the world outside the U.S. In addition, a sharpened focus by corporate
management on shareholder value should be positive for European equities down
the road. We continue to underweight Japan slightly, with an overall 17%
weighting versus 21% for the MSCI EAFE Index. The ruling party's latest plans to
restructure Japan's financial system and support the economy sound encouraging,
but we will wait to assess their actual implementation. Meanwhile, Japan faces
greater political uncertainty than ever in recent history, as evidenced by the
recent resignation of Prime Minister Ryutaro Hashimoto. We don't know when
Japan's fortunes will improve, but all bear markets end, and it is necessary to
remain invested to benefit from the inevitable rebound.
Developments in the rest of Asia are even more discouraging, and our
exposure outside Japan is a mere 5%. Smaller economies in Asia seem unable to
trade their way out of difficulty, and increasingly those governments seem to
favor inflating their way out of their debt crises.
Economic fundamentals and corporate attitudes toward shareholders are more
constructive in Latin America, and we retain a 7% exposure to the region.
Valuations in Latin America are compelling, in our view. We are hopeful that
these markets can decouple themselves from events in Asia and perform well over
the balance of the year.
<PAGE>
OUTLOOK
Though the U.S. and European economies remain strong, the Asian crisis is
now clearly slowing overseas demand for American products and restraining
earnings growth for multinational companies. Given that backdrop, we continue to
feel the Federal Reserve is unlikely to raise interest rates any time soon,
especially with the situation in Asia as uncertain as ever. While reduced
earnings expectations may crimp the U.S. stock market's gains, the interest rate
environment should continue to be supportive. There's no telling when market
sentiment will shift back in favor of small-caps and high-dividend value stocks,
but these shifts can happen unexpectedly. Given that small-caps are at their
lowest valuations relative to large-caps since 1990, and that the S&P 500 is at
historically high valuations in terms of price/earnings ratio and low dividend
yield, we think our policy of retaining exposure to each market segment is wise.
Our small-cap growth and large-cap value approaches have produced superior
returns historically, and should continue to do so over the long-term.
Overseas, we are likely to see continued volatility and sharp variations in
performance from one country to the next. We remain positive on the long-term
outlook for European markets. Declines in Asia and Latin America have created
attractive buying opportunities, which the Spectrum Funds are well positioned to
capitalize on.
The financial markets, as always, are unpredictable, and we continue to
believe that a well-diversified strategy can help cushion the impact of
significant declines in particular market segments. We will invest the Spectrum
Funds broadly to seek solid long-term growth with reduced variability of returns
from year to year.
Respectfully submitted,
/s/
Peter Van Dyke
President and Chairman of the Investment Advisory Committee
July 27, 1998
<PAGE>
T. Rowe Price Spectrum Funds
- --------------------------------------------------------------------------------
================================================================================
Portfolio Highlights
- --------------------------------------------------------------------------------
Key statistics
12/31/97 6/30/98
Spectrum Income Fund
- --------------------------------------------------------------------------------
Price Per Share ...................................... $11.66 $11.77
Capital Gain Distribution Per Share
Short-Term ...................................... 0.01 --
Long-Term ....................................... 0.14 0.01
Dividends Per Share
For 6 months .................................... 0.36 0.36
For 12 months ................................... 0.71 0.71
Dividend Yield *
For 6 months .................................... 6.13% 6.22%
For 12 months ................................... 6.39 6.27
30-Day Standardized Yield ............................ 6.05% 6.08%
Weighted Average Maturity (years)** .................. 9.5 10.0
Weighted Average Effective Duration (years)** ........ 4.1 4.2
Weighted Average Quality *** ......................... AA- A
* 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>
T. Rowe Price Spectrum Funds
- --------------------------------------------------------------------------------
================================================================================
Portfolio Highlights
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
Percent of
(Of the combined underlying funds at 6/30/98) Net Assets
6/30/98
Spectrum Growth Fund
- --------------------------------------------------------------------------------
Royal Dutch Petroleum ................................................... 0.8%
National Westminster Bank ............................................... 0.5
Paychex 0.5
SmithKline Beecham ...................................................... 0.4
Nestle .................................................................. 0.4
- --------------------------------------------------------------------------------
ING Groep ............................................................... 0.4
Wolters Kluwer .......................................................... 0.4
GE ...................................................................... 0.3
Diageo .................................................................. 0.3
Glaxo Wellcome .......................................................... 0.3
- --------------------------------------------------------------------------------
Total ................................................................... 4.3%
TEN LARGEST HOLDINGS
Percent of
(Of the combined underlying funds at 6/30/98) Net Assets
6/30/98
Spectrum International Fund
- --------------------------------------------------------------------------------
National Westminster Bank ............................................... 1.8%
Royal Dutch Petroleum ................................................... 1.7
SmithKline Beecham ...................................................... 1.5
ING Groep ............................................................... 1.4
Nestle .................................................................. 1.3
- --------------------------------------------------------------------------------
Diageo .................................................................. 1.2
Glaxo Wellcome .......................................................... 1.2
KBC Bankverzekerin ...................................................... 1.1
Telebras ................................................................ 1.0
SAP ..................................................................... 1.0
- --------------------------------------------------------------------------------
Total ................................................................... 13.2%
================================================================================
<PAGE>
T. Rowe Price Spectrum Funds
- --------------------------------------------------------------------------------
================================================================================
Portfolio Highlights
- --------------------------------------------------------------------------------
TARGET ALLOCATIONS for Underlying fundS
Minimum- Target at
Maximum 6/30/98
Spectrum Growth Fund
- --------------------------------------------------------------------------------
New Horizons .................................. 10-25% 19.0%
New Era 0-15 .................................. 5.0
Growth Stock .................................. 5-20 12.5
Growth & Income 7.5-22.5 ...................... 12.0
Equity Income ................................. 7.5-22.5 12.0
International Stock ........................... 10-25 22.5
Mid-Cap Value ................................. 0-15 4.0
Blue Chip Growth .............................. 5-20 13.0
Summit Cash Reserves .......................... 0-25 0.0
Spectrum Income Fund
- --------------------------------------------------------------------------------
Summit Cash Reserves .......................... 0-25 0.0
Short-Term Bond 0-15 .......................... 0.0
GNMA .......................................... 5-20 18.5
New Income .................................... 15-30 30.0
High Yield .................................... 10-25 19.0
International Bond ............................ 5-20 8.5
U.S. Treasury Long-Term 0-15 .................. 7.0
Equity Income ................................. 10-25 14.0
Emerging Markets Bond ......................... 0-10 3.0
Spectrum International Fund
- --------------------------------------------------------------------------------
International Stock ........................... 35-65 50.0
European Stock ................................ 0-30 22.5
Japan ......................................... 0-30 9.5
New Asia ...................................... 0-20 3.5
Latin America ................................. 0-15 1.5
Emerging Markets Stock ........................ 0-20 3.0
International Bond ............................ 0-20 5.0
Emerging Markets Bond ......................... 0-15 5.0
International Discovery 0-20 .................. 0.0
Summit Cash Reserves .......................... 0-25 0.0
================================================================================
<PAGE>
T. Rowe Price Spectrum Funds
- --------------------------------------------------------------------------------
================================================================================
Performance Comparison
- --------------------------------------------------------------------------------
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.
[Spectrum Growth Fund SEC graph shown here]
[Spectrum Inocme Fund SEC graph shown here]
T. Rowe Price Spectrum Funds
- --------------------------------------------------------------------------------
================================================================================
Performance Comparison
- --------------------------------------------------------------------------------
[Spectrum International Fund SEC graph 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 6/30/98 1 Year 5 Years Inception Date
Spectrum Growth Fund ............. 16.94% 18.38% 15.31% 6/29/90
Spectrum Income Fund ............. 11.22 8.98 10.30 6/29/90
Spectrum International Fund ...... 1.37 -- 8.35 12/31/96
Investment return represents past performance and will vary. Shares may be
worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
<TABLE>
T. Rowe Price Spectrum Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
For a share outstanding throughout each period
====================================================================================================================================
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
6 Months Year
Ended Ended
6/30/98 12/31/97 12/31/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period .................... $ 15.93 $ 15.13 $ 13.49 $ 11.13 $ 11.87 $ 10.54
Investment activities
Net investment income .......... 0.04 0.20 0.20 0.21 0.17 0.16
Net realized and
unrealized gain (loss) ......... 1.66 2.40 2.57 3.12 (0.01) 2.05
Total from
investment activities .......... 1.70 2.60 2.77 3.33 0.16 2.21
Distributions
Net investment income .......... -- (0.20) (0.20) (0.21) (0.17) (0.16)
Net realized gain .............. -- (1.60) (0.93) (0.76) (0.73) (0.72)
Total distributions ............ -- (1.80) (1.13) (0.97) (0.90) (0.88)
NET ASSET VALUE
End of period .......................... $ 17.63 $ 15.93 $ 15.13 $ 13.49 $ 11.13 $ 11.87
Ratios/Supplemental Data
Total return^ .......................... 10.67% 17.40% 20.53% 29.96% 1.40% 20.98%
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 ............................. 0.61%+ 1.26% 1.58% 1.81% 1.60% 1.57%
Portfolio turnover rate ................ 19.3%+ 20.4% 2.9% 7.4% 20.7% 7.0%
Net assets, end of period
(in millions) .......................... $ 2,859 $ 2,605 $ 2,104 $ 1,358 $ 879 $ 585
<FN>
^ Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming
reinvestment of all distributions [and payment of no redemption or account fees].
+ Annualized.
* See Note 3. The annualized weighted average expense ratio of the underlying funds was 0.84% for the six months ended June 30,
1998.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
T. Rowe Price Spectrum Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
For a share outstanding throughout each period
====================================================================================================================================
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
6 Months Year
Ended Ended
6/30/98 12/31/97 12/31/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period ..................... $ 11.66 $ 11.20 $ 11.24 $ 10.11 $ 11.11 $ 10.70
Investment activities
Net investment income ........... 0.36 0.71 0.71 0. 72 0.69 0.69
Net realized and
unrealized gain (loss) .......... 0.12 0.61 0.11 1.16 (0.90) 0.60
Total from
investment activities ........... 0.48 1.32 0.82 1.88 (0.21) 1.29
Distributions
Net investment income ........... (0.36) (0.71) (0.71) (0.72) (0.69) (0.69)
Net realized gain ............... (0.01) (0.15) (0.15) (0.03) (0.10) (0.19)
Total distributions ............. (0.37) (0.86) (0.86) (0.75) (0.79) (0.88)
NET ASSET VALUE
End of period ........................... $ 11.77 $ 11.66 $ 11.20 $ 11.24 $ 10.11 $ 11.11
Ratios/Supplemental Data
Total return^ ........................... 4.13% 12.18% 7.64% 19.41% (1.94)% 12.36%
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 .............................. 6.12%+ 6.21% 6.46% 6.43% 6.48% 6.19%
Portfolio turnover rate ................. 9.8%+ 14.1% 17.6% 20.2% 23.1% 14.4%
Net assets, end of period
(in millions) ........................... $ 2,446 $ 2,022 $ 1,356 $ 987 $ 625 $ 588
<FN>
^ Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming
reinvestment of all distributions [and payment of no redemption or account fees].
+ Annualized.
* See Note 3. The annualized weighted average expense ratio of the underlying funds was 0.78% for the six months ended June 30,
1998.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
T. Rowe Price Spectrum International Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
For a share outstanding throughout each period
====================================================================================================================================
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
6 Months 12/31/96
Ended Through
6/30/98 12/31/97
<S> <C> <C>
NET ASSET VALUE
Beginning of period .............................................................. $ 9.74 $ 10.00
Investment activities
Net investment income .................................................... 0.04 0.15
Net realized and unrealized gain (loss) .................................. 0.94 0.09#
Total from investment activities ......................................... 0.98 0.24
Distributions
Net investment income .................................................... -- (0.15)
Net realized gain ........................................................ -- (0.35)
Total distributions ...................................................... -- (0.50)
NET ASSET VALUE
End of period .................................................................... $ 10.72 $ 9.74
Ratios/Supplemental Data
Total return^ .................................................................... 10.06% 2.42%
Ratio of expenses to average net assets .......................................... 0.00%* 0.00%
Ratio of net investment income to average net assets ............................. 0.94%+ 2.23%
Portfolio turnover rate .......................................................... 15.7%+ 20.0%
Net assets, end of period (in thousands) ......................................... $ 57,415 $ 51,050
<FN>
^ Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming
reinvestment of all distributions [and payment of no redemption or account fees].
+ Annualized.
* See Note 3. The annualized weighted average expense ratio of the underlying funds was 1.01% for the six months ended June 30,
1998.
# The amount presented is calculated pursuant to a methodology prescribed by the Securities and Exchange Commission for a share
outstanding throughout the period. This amount is inconsistent with the Fund's aggregate gains and losses because of the timing
of sales and redemptions of Fund shares in relation to fluctuating market values for the investment portfolio.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. Rowe Price Spectrum Growth Fund
- --------------------------------------------------------------------------------
Unaudited June 30, 1998
Percent of
Net Assets Shares Value
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
In thousands
T. Rowe Price International Stock Fund ...... 22.3% 41,735,825 $636,889
T. Rowe Price New Horizons Fund ............. 19.2 21,844,527 549,171
T. Rowe Price Blue Chip Growth Fund ......... 13.3 13,363,116 379,379
T. Rowe Price Growth Stock Fund ............. 12.7 10,705,108 362,475
T. Rowe Price Growth & Income Fund .......... 11.9 12,119,047 340,667
T. Rowe Price Equity Income Fund ............ 11.8 12,396,705 338,182
T. Rowe Price New Era Fund .................. 4.8 5,163,243 137,755
T. Rowe Price Mid-Cap Value Fund ............ 4.1 7,591,419 116,528
Total Investments
100.1% of Net Assets (Cost $2,144,877) ...... $ 2,861,046
Other Assets Less Liabilities ............... (2,189)
NET ASSETS .................................. $ 2,858,857
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 7,775
Accumulated net realized gain/loss - net of distributions 56,913
Net unrealized gain (loss) .................. 716,169
Paid-in-capital applicable to 162,122,924 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
Spectrum authorized ......................... 2,078,000
NET ASSETS .................................. $ 2,858,857
NET ASSET VALUE PER SHARE ................... $ 17.63
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. Rowe Price Spectrum Income Fund
- --------------------------------------------------------------------------------
Unaudited June 30, 1998
Percent of
Net Assets Shares Value
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
In thousands
T. Rowe Price New Income Fund .................. 29.6% 79,733,721 $725,577
T. Rowe Price High Yield Fund ................. 19.0 52,662,113 464,480
T. Rowe Price GNMA Fund ........................ 18.4 46,941,493 449,230
T. Rowe Price Equity Income Fund ............... 13.9 12,499,492 340,986
T. Rowe Price International Bond Fund .......... 7.7 19,667,433 188,414
T. Rowe Price U.S. Treasury Long-Term Fund ..... 7.1 14,857,279 172,642
T. Rowe Price Emerging Markets Bond Fund ....... 2.9 5,588,077 70,130
T. Rowe Price Summit Cash Reserves Fund ........ 1.5 36,231,495 36,231
Total Investments
100.1% of Net Assets (Cost $2,324,510) ......... $ 2,447,690
Other Assets Less Liabilities .................. (2,020)
NET ASSETS ..................................... $ 2,445,670
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 111
Accumulated net realized gain/loss - net of distributions 6,851
Net unrealized gain (loss) ...................... 123,180
Paid-in-capital applicable to 207,766,199 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
Spectrum authorized ............................. 2,315,528
NET ASSETS ...................................... $ 2,445,670
NET ASSET VALUE PER SHARE ....................... $ 11.77
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. Rowe Price Spectrum International Fund
- --------------------------------------------------------------------------------
Unaudited June 30, 1998
Percent of
Net Assets Shares Value
================================================================================
Statement of Net Assets
- --------------------------------------------------------------------------------
In thousands
T. Rowe Price International Stock Fund ... 50.2% 1,889,044 $ 28,827
T. Rowe Price European Stock Fund ........ 22.6 538,820 12,959
T. Rowe Price Japan Fund ................. 9.7 841,607 5,588
T. Rowe Price International Bond Fund .... 5.1 304,125 2,913
T. Rowe Price Emerging Markets Bond Fund . 4.9 222,138 2,788
T. Rowe Price New Asia Fund .............. 3.3 426,888 1,921
T. Rowe Price Emerging Markets Stock Fund 2.8 164,086 1,608
T. Rowe Price Latin America Fund ......... 1.5 92,232 842
Total Investments
100.1% of Net Assets (Cost $56,187) ...... $ 57,446
Other Assets Less Liabilities ............ (31)
NET ASSETS ............................... $ 57,415
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 245
Accumulated net realized gain/loss - net of distributions 589
Net unrealized gain (loss) ............... 1,259
Paid-in-capital applicable to 5,353,776 shares of $0.01
par value capital stock outstanding; 1,000,000,000 shares of
Spectrum authorized ...................... 55,322
NET ASSETS ............................... $ 57,415
NET ASSET VALUE PER SHARE ................ $ 10.72
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
T. Rowe Price Spectrum Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
====================================================================================================================================
Statement of Operations
- ------------------------------------------------------------------------------------------------------------------------------------
In thousands Growth Income International
Fund Fund Fund
6 Months 6 Months 6 Months
Ended Ended Ended
6/30/98 6/30/98 6/30/98
<S> <C> <C> <C>
Investment Income
Income distributions from underlying funds ........................ $ 6,953 $68,767 $ 212
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Sale of underlying funds .......................................... 45,109 5,485 350
Capital gain distributions
from underlying funds ............................................. 5,382 2,153 36
Net realized gain (loss) .......................................... 50,491 7,638 386
Change in net unrealized gain or loss ..................................... 219,682 13,310 4,528
Net realized and unrealized gain (loss) ................................... 270,173 20,948 4,914
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS .................................................... $277,126 $89,715 $5,126
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
T. Rowe Price Spectrum Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
====================================================================================================================================
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
In thousands
<CAPTION>
6 Months Year
Ended Ended
6/30/98 12/31/97
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Investment income ........................................................ $ 6,953 $ 30,195
Net realized gain (loss) ................................................. 50,491 241,513
Change in net unrealized gain or loss .................................... 219,682 107,050
Increase (decrease) in net assets from operations ........................ 277,126 378,758
Distributions to shareholders
Investment income ........................................................ (14) (29,390)
Net realized gain ........................................................ -- (235,060)
Decrease in net assets from distributions ................................ (14) (264,450)
Capital share transactions *
Shares sold .............................................................. 300,855 581,730
Distributions reinvested ................................................. -- 260,813
Shares redeemed .......................................................... (324,375) (455,680)
Increase (decrease) in net assets from capital
share transactions ....................................................... (23,520) 386,863
Net Assets
Increase (decrease) during period ................................................ 253,592 501,171
Beginning of period .............................................................. 2,605,265 2,104,094
End of period .................................................................... $ 2,858,857 $ 2,605,265
*Share information
Shares sold .............................................................. 17,670 35,829
Distributions reinvested ................................................. -- 16,665
Shares redeemed .......................................................... (19,135) (27,933)
Increase (decrease) in shares outstanding ................................ (1,465) 24,561
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
T. Rowe Price Spectrum Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
====================================================================================================================================
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
In thousands
<CAPTION>
6 Months Year
Ended Ended
6/30/98 12/31/97
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Investment income ........................................................ $ 68,767 $ 101,589
Net realized gain (loss) ................................................. 7,638 26,871
Change in net unrealized gain or loss .................................... 13,310 63,392
Increase (decrease) in net assets from operations ........................ 89,715 191,852
Distributions to shareholders
Investment income ........................................................ (68,767) (101,589)
Net realized gain ........................................................ (1,814) (25,467)
Decrease in net assets from distributions ................................ (70,581) (127,056)
Capital share transactions *
Shares sold .............................................................. 649,319 847,820
Distributions reinvested ................................................. 65,174 117,122
Shares redeemed .......................................................... (310,184) (363,481)
Increase (decrease) in net assets from capital
share transactions ....................................................... 404,309 601,461
Net Assets
Increase (decrease) during period ................................................ 423,443 666,257
Beginning of period .............................................................. 2,022,227 1,355,970
End of period .................................................................... $ 2,445,670 $ 2,022,227
*Share information
Shares sold .............................................................. 55,095 74,079
Distributions reinvested ................................................. 5,529 10,200
Shares redeemed .......................................................... (26,297) (31,887)
Increase (decrease) in shares outstanding ................................ 34,327 52,392
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
T. Rowe Price Spectrum International Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Unaudited
====================================================================================================================================
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
In thousands
<CAPTION>
6 Months 12/31/96
Ended Through
6/30/98 12/31/97
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Investment income ............................................................ $ 212 $ 784
Net realized gain (loss) ..................................................... 386 1,955
Change in net unrealized gain or loss ........................................ 4,528 (3,269)
Increase (decrease) in net assets from operations ............................ 5,126 (530)
Distributions to shareholders
Investment income ............................................................ -- (751)
Net realized gain ............................................................ -- (1,752)
Decrease in net assets from distributions .................................... -- (2,503)
Capital share transactions *
Shares sold .................................................................. 11,803 69,234
Distributions reinvested ..................................................... -- 2,414
Shares redeemed .............................................................. (10,564) (17,565)
Increase (decrease) in net assets from capital
share transactions ........................................................... 1,239 54,083
Net Assets
Increase (decrease) during period .................................................... 6,365 51,050
Beginning of period .................................................................. 51,050 --
End of period ........................................................................ $ 57,415 $ 51,050
*Share information
Shares sold .................................................................. 1,118 6,668
Distributions reinvested ..................................................... -- 248
Shares redeemed .............................................................. (1,007) (1,673)
Increase (decrease) in shares outstanding .................................... 111 5,243
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
T. Rowe Price Spectrum Funds
- --------------------------------------------------------------------------------
Unaudited June 30, 1998
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
T. Rowe Price Spectrum Fund, Inc. (the corporation) is registered under the
Investment Company Act of 1940 (the Act) as a nondiversified, open-end
management investment company. Spectrum Growth Fund, Spectrum Income Fund, and
Spectrum International Fund (collectively, the Spectrum Funds), are the three
portfolios established by the corporation. Operations commenced on June 29, 1990
for Spectrum Growth and Spectrum Income Funds, and on December 31, 1996 for
Spectrum International Fund.
Each Spectrum Fund diversifies its assets within set limits among specific
underlying T. Rowe Price funds (underlying funds). Spectrum Growth Fund
principally seeks long-term capital appreciation and growth of income by
allocating its assets to underlying funds that invest primarily in stocks.
Spectrum Income Fund strives to provide a high level of current income with
moderate share price fluctuation, by investing in underlying funds that invest
primarily in fixed income securities. The objective of Spectrum International
Fund is to provide long-term capital appreciation through allocations to
underlying funds that invest primarily in international stocks and, to a lesser
degree, international bonds.
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION The financial statements are prepared in accordance
with generally accepted accounting principles for the investment company
industry; these principles may require the use of estimates by fund management.
VALUATION Investments in the underlying funds are valued at the closing net
asset value per share of each underlying fund on the day of valuation.
Assets for which the above valuation procedures are inappropriate or are
deemed not to reflect fair value are stated at fair value as determined in good
faith by or under the supervision of the officers of the fund, as authorized by
the Board of Directors.
DISTRIBUTIONS Income and capital gain distributions from the underlying
funds and distributions to the Spectrum Funds' shareholders are recorded on the
ex-dividend date.
Income and capital gain distributions to the Spectrum Funds' shareholders
are determined in accordance with federal income tax regulations, which may
differ from generally accepted accounting principles.
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.
OTHER Income is 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.
<PAGE>
NOTE 2 - INVESTMENTS IN UNDERLYING FUNDS
Purchases and sales of the underlying funds for the six months ended June
30, 1998, were as follows:
================================================================================
Growth Income International
Fund Fund Fund
Purchases $261,143,000 $517,823,000 $5,179,000
Sales 274,842,000 112,643,000 3,778,000
At June 30, 1998, the net unrealized gain (loss) on investments in the
underlying funds for both federal income tax and financial reporting purposes
were as follows:
================================================================================
Growth Income International
Fund Fund Fund
Appreciated investments $716,169,000 $ 135,048,000 $ 4,733,000
Depreciated investments -- (11,868,000) (3,474,000)
Net unrealized gain (loss) $716,169,000 $ 123,180,000 $ 1,259,000
NOTE 3 - RELATED PARTIES
T. Rowe Price Associates, Inc. (T. Rowe Price) is the investment manager
for Spectrum Growth and Spectrum Income Funds, and also serves as manager for
the domestic underlying funds. Rowe Price-Fleming International, Inc.
(Price-Fleming) is the investment manager for Spectrum International Fund, and
also serves as manager for the international underlying funds. T. Rowe Price and
its wholly-owned subsidiaries provide transfer and dividend disbursing agent,
accounting, shareholder, administrative, marketing, and certain other services
to the Spectrum Funds. Certain officers and directors of the Spectrum Funds are
also officers and directors of T. Rowe Price, Price-Fleming, and the underlying
funds.
The Spectrum Funds pay no management fees; however, T. Rowe Price and
Price-Fleming receive management fees from managing the underlying funds. In
addition, expenses associated with the operation of the Spectrum Funds are borne
by each underlying fund in proportion to the average daily value of its shares
owned by the Spectrum Funds, pursuant to special servicing agreements between
and among the corporation, the underlying funds, T. Rowe Price, and, in the case
of Spectrum International, Rowe Price-Fleming. Therefore, the Spectrum Funds
each operate at a zero expense ratio, although the valuations of the underlying
funds reflect the impact of Spectrum investments on management fees and other
expenses of the underlying funds.
The Spectrum Funds do not invest in underlying funds for the purpose of
exercising management or control; however, investments by Spectrum within the
set limits may represent a significant portion of an underlying fund's net
assets. At June 30, 1998, Spectrum International Fund held less than 25% of the
outstanding shares of any underlying fund; Spectrum Growth Fund held
approximately 45% of the outstanding shares of the T. Rowe Price Mid-Cap Value
Fund, and Spectrum Income Fund held approximately 61% of the outstanding shares
of the T. Rowe Price U.S. Treasury Long-Term Fund, 47% of the T. Rowe Price
Emerging Markets Bond Fund, 40% of the T. Rowe Price GNMA Fund, 35% of the T.
Rowe Price New Income Fund, and 27% of the T. Rowe Price High Yield Fund.
<PAGE>
T. Rowe Price Shareholder Services
- --------------------------------------------------------------------------------
Investment Services And Information
KNOWLEDGEABLE SERVICE REPRESENTATIVES
BY PHONE Shareholder service representatives are available from 8 a.m.
to 10 p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on
weekends. Call 1-800-225-5132 to speak directly with a representative
who will be able to assist you with your accounts.
IN PERSON Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. You
can also drop off applications or obtain prospectuses and other
literature at these centers.
AUTOMATED 24-HOUR SERVICES
TELE*ACCESS [REGISTRATION MARK] Call 1-800-638-2587 to obtain
information such as account balance, date and amount of your last
transaction, latest dividend payment, fund prices, and yields.
Additionally, you have the ability to request prospectuses,
statements, and account and tax forms; to reorder checks; and to
initiate purchase, redemption, and exchange orders for identically
registered accounts.
INTERNET. T. Rowe Price Web site: www.troweprice.com All the
information and services available on Tele*Access are available on our
Web site, including transactions in your fund and Discount Brokerage
accounts (with preauthorized access).
ACCOUNT SERVICES
CHECKING Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield and Emerging Markets Bond
Funds).
AUTOMATIC INVESTING Build your account over time by investing directly
from your bank account or paycheck with Automatic Asset Builder.
Additionally, Automatic Exchange enables you to set up systematic
investments from one fund account into another, such as from a money
fund into a stock fund. A $50 minimum makes it easy to get started.
AUTOMATIC WITHDRAWAL If you need money from your fund account on a
regular basis, you can establish scheduled, automatic redemptions.
DIVIDEND AND CAPITAL GAINS PAYMENT OPTIONS Reinvest all or some of
your distributions, or take them in cash. We give you maximum
flexibility and convenience.
<PAGE>
DISCOUNT BROKERAGE*
INVESTMENTS AVAILABLE You can trade stocks, bonds, options, precious
metals, mutual funds, and other securities at a savings over regular
commission rates.
TO OPEN AN ACCOUNT Call a shareholder service representative for more
information.
Investment Information
COMBINED STATEMENT A comprehensive overview of your T. Rowe Price
accounts is provided. The summary page gives you earnings by tax
category, provides total portfolio value, and lists your investments
by type. Detail pages itemize account transactions.
SHAREHOLDER REPORTS Portfolio managers review the performance of the
funds in plain language and discuss T. Rowe Price's economic outlook.
T. ROWE PRICE REPORT This is a quarterly newsletter with relevant
articles on market trends, personal financial planning, and T. Rowe
Price's economic perspective.
PERFORMANCE UPDATE This quarterly report reviews recent market
developments and provides comprehensive performance information for
every T. Rowe Price fund.
INSIGHTS This library of information includes reports on mutual fund
tax issues, investment strategies, and financial markets.
DETAILED INVESTMENT GUIDES Our widely acclaimed Asset Mix Worksheet,
College Planning Kit, Diversifying Overseas: A Guide to International
Investing, Retirees Financial Guide, and Retirement Planning Kit (also
available on disk or CD-ROM for PC use) can help you determine and
reach your investment goals.
*A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
<PAGE>
T. Rowe Price Mutual Funds
- --------------------------------------------------------------------------------
STOCK FUNDS
- --------------------------------------------------------------------------------
DOMESTIC
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500*
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications**
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era New Horizons***
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value***
Spectrum Growth
Total Equity Market Index
Value
INTERNATIONAL/GLOBAL
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
<PAGE>
BOND FUNDS
- --------------------------------------------------------------------------------
DOMESTIC TAXABLE
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
DOMESTIC TAX-FREE
California Tax-Free Bond
Florida 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 Bond +
International Bond
MONEY MARKET FUNDS ++
- --------------------------------------------------------------------------------
TAXABLE
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
TAX-FREE
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
<PAGE>
BLENDED ASSET FUNDS
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD VARIABLE ANNUITY
- --------------------------------------------------------------------------------
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Formerly named Equity Index.
** Formerly the closed-end New Age Media Fund. Converted to open-end status on
7/28/97.
*** Closed to new investors.
+ Formerly named Global Government Bond.
++ Neither the funds nor their share prices are insured or guaranteed by the
U.S. government.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued
by First Security Benefit Life Insurance Company of New York, White Plains,
NY. T. Rowe Price refers to the underlying portfolios' investment managers
and the distributors, T. Rowe Price Investment Services, Inc.; T. Rowe
Price Insurance Agency, Inc.; and T. Rowe Price Insurance Agency of Texas,
Inc. The Security Benefit Group of Companies and the T. Rowe Price
companies are not affiliated. The variable annuity may not be available in
all states. The contract has limitations. Call a representative for costs
and complete details of the coverage.
<PAGE>
T. Rowe Price Discount Brokerage
- --------------------------------------------------------------------------------
DISCOUNT BROKERAGE
A Division of T. Rowe Price Investment Services, Inc., Member NASD/SIPC
This low-cost service gives you the opportunity to easily consolidate all
your investments with one company. Through T. Rowe Price Discount
Brokerage, you can buy and sell individual securities-stocks, bonds,
options, and others-as well as mutual funds at considerable commission
savings over full-service brokers.* We also provide a wide range of
services, including:
AUTOMATED TELEPHONE and Internet Services You can enter trades, access
quotes, and review account information 24 hours a day, seven days a week.
Any trades executed through these programs provide additional savings on
commissions.**
INVESTOR INFORMATION A variety of informative reports, such as our
Brokerage Insights series, S&P Market Month newsletter, and select stock
reports, can help you better evaluate economic trends and investment
opportunities.
DIVIDEND REINVESTMENT Service Virtually all stocks held in customer
accounts are eligible for this service, free of charge.
* Based on an April 1998 survey for representative-assisted stock trades.
Services vary by firm, and commissions may vary by size of order.
** Discount applies to our current commission schedule. All trades subject to
a $35 minimum commission except equity trades placed through
Internet-Trader, which are subject to a $29.95 minimum commission.
<PAGE>
FOR YIELD, PRICE, LAST TRANSACTION,
CURRENT BALANCE, OR TO CONDUCT
TRANSACTIONS, 24 HOURS, 7 DAYS
A WEEK, CALL TELE*ACCESS [REGISTRATION MARK]:
1-800-638-2587 toll free
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
TO OPEN A DISCOUNT BROKERAGE
ACCOUNT OR OBTAIN INFORMATION,
CALL: 1-800-638-5660 toll free
INTERNET ADDRESS:
www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus of the
T. Rowe Price Spectrum Funds.
INVESTOR CENTERS:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
T. Rowe Price Investment Services, Inc., Distributor. C08-051 6/30/98
