October 1, 2000
FUND PROFILE
T. ROWE PRICE
Spectrum International Fund
A broadly diversified fund seeking long-term capital appreciation by investing
in other T. Rowe Price funds.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional
information about the fund, including a more detailed description of the risks
associated with investing in the fund that you may want to consider before you
invest. You may obtain the prospectus and other information about the fund at no
cost by calling
1-800-638-5660, or by
visiting our Web site at www.troweprice.com.
TROWEPRICELOGO
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FUND PROFILE
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What is the fund's objective?
The fund seeks long-term capital appreciation.
What is the fund's principal investment strategy?
The fund can diversify its assets widely among 10 T. Rowe Price funds: four
developed market equity funds, three emerging market equity funds, two
international bond funds, and a money market fund. Within the ranges shown in
the next table, managers decide how much of the fund's assets to allocate to
each underlying fund based on their outlook for, and on the relative
valuations of, the underlying funds and of the various markets in which they
invest.
The fund may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into more promising opportunities.
<TABLE>
<CAPTION>
Asset Allocation Ranges
Fund Percent of assets Fund Percent of assets
<S> <C> <S> <C>
Emerging Markets Bond 0-15% International Stock 35 - 65%
Emerging Markets
Stock 0-20 Japan 0-30
European Stock 0-30 Latin America 0-15
International Bond 0-20 New Asia 0-20
International 0-20 Summit Cash Reserves 0-25
Discovery
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</TABLE>
Further information about the fund's investments, including a review of
market conditions and fund strategies and their impact on performance, is
available in the annual and semiannual shareholder reports. To obtain free
copies of either of these documents, call 1-800-638-5660.
What are the main risks of investing in the fund?
The fund's performance will primarily be influenced by stock fund risks. As
with all stock funds, this fund's share price can fall because of weakness in
the broad market, a particular industry, or specific holdings. The market as
a whole can decline for many reasons, including adverse political or economic
developments here or abroad, changes in investor psychology, or heavy
institutional selling. The prospects for a particular underlying fund or the
industries or companies in which they invest may deteriorate because of a
variety of factors, including disappointing earnings or changes in the
competitive environment. In addition, our assessment of the underlying funds
held by the fund may prove incorrect, resulting in losses or poor performance
even in a rising market. Because the fund can invest up to 35% of assets in
foreign bond funds, it will also be affected by bond fund risks. These
include the decline in bond prices that accompanies a rise in the overall
level of interest rates and bond credit downgrades or defaults.
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FUND PROFILE
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Funds that invest overseas generally carry more risk than funds that invest
strictly in U.S. assets. These risks include fluctuations in foreign exchange
rates that can significantly increase or decrease the dollar value of a
foreign investment, boosting or offsetting its local market return. For
example, weakening foreign currencies versus the U.S. dollar would typically
lower returns for U.S. investors. Investing in foreign markets may also
involve higher costs and lower liquidity. Government interference in capital
markets, such as capital or currency controls, nationalization of companies
or industries, expropriation of assets, or imposition of punitive taxes would
have an adverse effect on the fund.
To the extent that the fund has investments in emerging market countries,
primarily through the Emerging Markets Stock, Latin America, New Asia, or
Emerging Markets Bond Funds, it will be more subject to abrupt and severe
price declines. Many of the economic and political structures of these
countries do not compare favorably with the U.S. in terms of wealth and
stability, and their financial markets lack liquidity. Therefore, investments
in these countries are much riskier than investments in mature markets.
As with any mutual fund, there can be no guarantee the fund will achieve its
objective.
. The fund's share price may decline, so when you sell your shares, you may
lose money. An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
How can I tell if the fund is appropriate for me?
Consider your investment goals, your time horizon for achieving them, and
your tolerance for risk. If you would like a one-stop approach to broad
international diversification and can accept the possibility of significant
share price declines in an effort to achieve long-term capital appreciation,
the fund could be an appropriate part of your overall investment strategy.
The fund should not represent your complete investment program or be used for
short-term trading purposes.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
. Equity investors should have a long-term investment horizon and be willing
to wait out bear markets.
How has the fund performed in the past?
The bar chart showing calendar year returns and the average annual total
return table indicate risk by illustrating how much returns can differ from
one year to the next and over time. Fund past performance is no guarantee of
future returns.
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The fund can also experience short-term performance swings, as shown by the
best and worst calendar quarter returns during the years depicted in the
chart.
LOGO
<TABLE>
<CAPTION>
Calendar Year Total Returns
"97" "98"
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<S> <C>
2.42 12.28
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</TABLE>
Quarter ended Total return
Best quarter 12/31/98 18.22%
Worst quarter 9/30/98 -13.71%
<TABLE>
Table 1 Average Annual Total Returns
<CAPTION>
Periods ended 09/30/2000
Since inception
1 year (12/31/1996)
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<S> <C> <C> <S>
Spectrum International Fund 12.85% 10.37%
Combined Index Portfolio (90% MSCI
EAFE/ 10% J.P. Morgan Non-U.S.
Dollar Government Bond Index) 2.29 8.20
Lipper International Funds Average 10.77 10.49
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</TABLE>
These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
What fees or expenses will I pay?
The fund is 100% no load. There are no fees or charges to buy or sell fund
shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
are no 12b-1 fees. Redemption proceeds of less than $5,000 sent by wire are
subject to a $5 fee paid to the fund. While the fund itself imposes no fees
or
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charges, it will indirectly bear its pro-rata share of the expenses of the
underlying funds. The following table provides a range for the fund's average
weighted expense ratio. A range is given instead of a single number because
the pro-rata share of expenses fluctuates along with changes in the average
assets in each of the underlying funds.
<TABLE>
<CAPTION>
<S> <C>
Range of average weighted expense ratio as of 12/31/99 0.74% to 1.17%
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</TABLE>
Example. The following table gives you a rough idea of how expense ratios
may translate into dollars and helps you to compare the cost of investing in
this fund with that of other mutual funds. Although your actual costs may be
higher or lower, the table uses the midpoint of the range to show the
expenses you would pay if operating expenses remain the same, you invest
$10,000, earn a 5% annual return, and hold the investment for the following
periods and then redeem:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
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<S> <C> <C> <C>
$98 $306 $531 $1,178
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</TABLE>
Who manages the fund?
T. Rowe Price International is responsible for the selection and management
of the fund's portfolio investments. The company, a wholly owned subsidiary
of T. Rowe Price Associates, is the successor to Rowe Price-Fleming
International ("Price-Fleming"), a joint venture established in 1979 between
T. Rowe Price Associates and Robert Fleming Holdings ("Flemings"). In 2000,
T. Rowe Price became the sole owner of Rowe Price-Fleming and renamed the
company T. Rowe Price International. The U.S. office of T. Rowe Price
International is located at 100 East Pratt Street, Baltimore, Maryland 21202.
Offices are also located in London, Tokyo, Singapore, Hong Kong, Buenos
Aires, and Paris.
John R. Ford manages the fund day-to-day and has been chairman of its
Investment Advisory Committee since 1996. He joined Price-Fleming in 1982 and
has been a portfolio manager since 1984.
Note: The following questions and answers about buying and selling shares and
services do not apply to employer-sponsored retirement plans. If you are a
participant in one of these plans, please call your plan's toll-free number for
additional information.
How can I purchase shares?
Fill out the New Account Form and return it with your check in the postpaid
envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
or transfers to minors). The minimum subsequent investment is $100 ($50 for
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IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
open an account by bank wire, by exchanging from another T. Rowe Price fund,
or by transferring assets from another financial institution.
How can I sell shares?
You may redeem or sell any portion of your account on any business day.
Simply write to us or call. You can also access your account at any time via
Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
entire family of domestic and international funds. Restrictions may apply in
special circumstances, and some redemption requests need a signature
guarantee.
When will I receive income and capital gain distributions?
The fund distributes income and net capital gains, if any, at year-end. For
regular accounts, income and short-term gains are taxable at ordinary income
rates, and long-term gains are taxable at the capital gains rate.
Distributions are reinvested automatically in additional shares unless you
choose another option, such as receiving a check. Distributions paid to IRAs
and employer-sponsored retirement plans are automatically reinvested.
What services are available?
A wide range, including but not limited to:
. retirement plans for individuals and large and small businesses;
. automated information and transaction services by telephone or computer;
. electronic transfers between fund and bank accounts;
. automatic investing and automatic exchange;
. brokerage services; and
. asset manager accounts.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F118-035
T. Rowe Price Investment Services, Inc., Distributor
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