<PAGE>
Semiannual Report
SMALL-CAP
VALUE FUND
JUNE 30, 1999
[LOGO OF T. ROWE PRICE APPEARS HERE]
<PAGE>
Report Highlights
- --------------------
Small-Cap Value Fund
. Stocks continued to advance, and, in the second quarter, small-cap stocks
finally returned to favor.
. Despite their recent surge, small-company issues lagged the broad market
for the half.
. The fund's six-month return was positive but trailed its benchmarks, which
had greater exposure to the strong technology sector.
. Small-cap companies continue to be taken over at a notable pace, reflecting
their unusually low absolute and relative valuations.
. Small-cap stocks remain inexpensive compared with the broad market, and we
are optimistic that their rebound will persist.
<PAGE>
FELLOW SHAREHOLDERS
The stock market enjoyed another positive six months during the first half of
1999. After a long time in the wilderness, small-cap stocks became market
leaders in the second quarter, but for the entire half, they lagged behind their
larger brethren. The technology sector remained strong, although the frenzied
rally in Internet-related stocks cooled somewhat in the second quarter.
PERFORMANCE COMPARISON
Periods Ended 6/30/99 6 Months 12 Months
------------------------------------------------
Small-Cap Value Fund 4.38% -10.93%
-----------------------------------------------
Russel 2000 Index 9.28 1.50
-----------------------------------------------
Lipper Small-Cap Fund Index 9.43 1.92
-----------------------------------------------
S&P 500 12.38 22.76
-----------------------------------------------
The Small-Cap Value Fund declined over 11% from year-end to its low in late
March even as the same stocks that had led the markets in 1998--large caps,
technology, Internet, and growth issues--continued their winning ways. This
slide in price is evident in the fund's negative 12-month return, and the
market's strong bias against value stocks during this period is evident both in
the absolute return and in the unfavorable benchmark comparisons.
However, just when it seemed that everyone in the country would open an on-line
account to trade Internet stocks, market sentiment changed in early April. Value
stocks, cyclicals, real estate investment trusts, and other out-of-favor issues
reversed direction. The fund rose nearly 18% from its March low to the end of
June as the small-cap sector finally turned positive. While the Russell 2000
Index of small-cap stocks still has not overtaken the S&P 500 Stock Index for
the year, the results of the past three months were sufficiently positive to
encourage long-suffering small stock investors about the future. Your fund
gained 16.68% in the second quarter but could not close the year-to-date gap
versus competitors with growth stock-oriented portfolios.
Small-cap stocks are always subject to swings in market leadership--sometimes
favorable, sometimes unfavorable--but over time their impact on performance is
muted. For the past 5- and 10-year periods ended June 30, the fund has provided
average annual returns of 13.64% and 13.26%, respectively.
1
<PAGE>
Portfolio Activity
As noted elsewhere in this report, the fund has experienced record takeover
activity in the past nine months. In fact, five of the 10 largest sales during
the first half of 1999 involved companies that were acquisition targets:
Meridian Industrial Trust, Unitog, Rival, American Safety Razor, and Juno
Lighting. Juno's exit was particularly noteworthy because it had been a
portfolio company since the fund's inception in 1988. During that time, the
company's earnings and stock price doubled and its dividend quadrupled. Unlike
some companies whose takeover is eagerly greeted, we were sorry to see Juno go.
On the purchase side, we initiated positions in Triad Guaranty, TriStar
Aerospace, Packaged Ice, and Resolute Limited. Triad is a mortgage insurer, one
of a handful of public companies whose business is to provide credit enhancement
to residential mortgages that would otherwise be considered too risky for
preferred rates. A modest slowdown in the industry's growth led the stock to
fall 70% from its high even though the company has yet to report a decline in
profits. We were only too happy to buy at a low valuation when others bailed
out.
Packaged Ice is one of the most intriguing companies we have seen in years. The
firm has developed a patented labor-free bagging device that, when combined with
- -------------------------------------------------------------------------------
INFORMATION ON YEAR-END DISTRIBUTIONS
- -------------------------------------------------------------------------------
To help you with tax planning, we try to give you a good idea of the per-share
income and capital gain amounts our funds may distribute near year-end. In late
October, we will provide estimates of these amounts, which will be paid on
December 16, 1999, to shareholders of record on December 14. These preliminary
numbers will be included in The Price Report mailing to shareholders in late
October and will also be available on our Web site--www.troweprice.com.
We hope that these preliminary numbers will be useful to you in approximating
the income and capital gains taxes you may pay on distributions to taxable
accounts. If your fund distributed any capital gains earlier in 1999, you can
find the amounts on your statements and should include them in your tax planning
calculations. Please keep in mind that the numbers are not final and are likely
to be revised before the December 14 declaration and record date. As the fall
progresses, you may want to check our Web site for revisions.
If you would like information on tax matters relating to mutual funds, please
visit our Web site to download our Insights report, Tax Information for Mutual
Fund Investors, or call 1-800-225-5132 to request a copy.
2
<PAGE>
that, when combined with a freezer unit, makes and also bags cubed ice for sale
in supermarkets. This mini ice factory is a boon to supermarkets, a hit with
consumers, a profitable machine for Packaged Ice, and a scourge to the company's
competitors. Packaged Ice faces the usual small-company issues of execution of
its business plan and access to inexpensive capital, but its growth potential
appears unusually large.
AN ACQUISITION BINGE
In our last report to you, we noted that year-end valuations for small companies
(as represented by the Russell 2000) had reached 20-year lows versus larger
companies (represented by the S&P 500). For example, the relative P/E ratio,
which had typically ranged between 1.0 and 1.5 from 1979 through 1997, had
fallen to 0.8 by the end of 1998. During the early part of 1999 the ratio
remained well below its historical average level even when considering the
rebound that small stocks enjoyed during the second quarter.
While the average investor fled from small-cap stocks in 1998 and the early part
of 1999, Corporate America went on an acquisition binge. We reported in January
that the fund had experienced 12 takeover announcements of portfolio companies
from October 28, 1998, to January 11, 1999. The pace has slowed a bit but has
remained well above average so far this year. Through July 2, 1999, 12 takeovers
for our companies have been announced, twice the pace from 1995 to 1997.
Most of the merger proposals have come from larger companies (including such
well-known firms as GE, Finova, Rohm & Haas, and Illinois Tool Works), but we
have also seen activity from leveraged buyout (LBO) firms. LBO partnerships
depend on high-yield debt to leverage their scarce equity in funding an
acquisition, and they cannot afford to overpay for deals. The fact that they
have been active in our sector means the companies they look to acquire are
inexpensive on their own merits, not just relative to larger firms.
I find it interesting that the takeovers that have been announced have involved
companies from a broad sweep of industries. They range from financial (Sirrom
Capital) to industrial (Haskel International), consumer product (American Safety
Razor) business services (Unitog), technology (Optek Technology), and energy
services (Newpark Resources). In most cases, the premiums offered over the
market
3
<PAGE>
price have exceeded 30%. And unlike the 1980s when hostile takeovers and
bidding wars were common, only one of our 12 announced deals this year has
sparked a rival bid.
I believe that, on balance, acquisitions are good for the fund. They generally
enhance results in the short term. They encourage other company managements to
work harder creating shareholder value to boost their company's stock price. And
they facilitate the movement of capital, labor, and creative ideas that has
proven so positive for the growth of our economy.
A VIEW ON THE YEAR 2000 ISSUE
By now, most of us have become thoroughly educated on the Year 2000 (Y2K)
problem--the potential for computers that identify years with two digits instead
of four to mistake 2000 for 1900, and, therefore, fail to perform necessary
functions unless modified. T. Rowe Price has been taking steps to assure that
its computer systems and processes will function in 2000 and has communicated
our progress to you. I want to address a different Y2K issue, what President
Franklin Roosevelt might have referred to as "the fear of Y2K."
It is my personal opinion that the U.S. will move into January 2000 with
relative ease. That opinion is based on discussions with company managements
about their Y2K preparations and on the behavior of individuals and companies
leading up to the event. I find it instructive that most companies we talk to
are well past their peak spending on Y2K remediation, the process of fixing
software code and testing systems. In fact, firms that specialize in information
technology consulting have seen their business drop precipitously over the past
six months from admittedly high levels in 1998. It seems that most of the heavy
work has been completed, and that companies are, on balance, well positioned to
finish their Y2K work on time.
Notwithstanding this positive position, many investors I talk to believe there
will be a Y2K problem in January, and that stocks will decline later this year
in anticipation of the event. Even those who don't believe our society will
suffer next year still fear the stock market will fall during the fourth quarter
because of how other investors will react. In essence, the fear of the problem
may be worse than the problem itself.
4
<PAGE>
If my view that Y2K will be a relative nonevent in the U.S. is correct, then any
drop in the stock market this fall triggered by fear of Y2K could lead to some
very attractive buying opportunities.
Outlook
We entered the year thinking it would be tough for the overall stock market to
approach its 1998 results. So far we've been surprised at the resilience of
large-cap stocks in the face of rising interest rates and sometimes uncertain
corporate profits. But the recent rebound in small-caps has been less
surprising: they are still very inexpensive relative to big companies and
consequently are being bought at a rapid rate.
With the caveat that Y2K is still ahead of us and may prove to be a short-term
market risk, we have a positive view of the opportunities in our small-cap value
sector. If investor attention in this area picks up, we see good potential for
favorable returns over the next 12 to 18 months.
Respectfully submitted,
/s/ Preston G. Athey
Preston G. Athey
President and Chairman of the Investment Advisory Committee
July 21, 1999
5
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
MAJOR PORTFOLIO CHANGES
(Listed in descending order of size)
6 Months Ended 6/30/99
Ten Largest Purchases Ten Largest Sales
- --------------------------------------------------------------------------------
Triad Guaranty * Meridian Industrial Trust **
TriStar Aerospace * Unitog **
Packaged Ice * Grey Advertising **
Resolute Limited * Rival **
Richardson Electronics Cvt.Bd. Optical Coating Laboratory
Kilroy Realty American Safety Razor **
Goody's Family Clothing UICI **
Prime Retail Cum. Pfd. Juno Lighting **
First Financial Fund Madison Gas and Electric **
Liqui-Box First National Bank of Anchorage
* Position added
**Position eliminated
6
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
6/30/99
- --------------------------------------------------------------------------------
Insituform Technologies 2.4%
Brown and Brown 2.2
Allied Capital 2.1
Holophane 1.8
McGrath RentCorp 1.8
- --------------------------------------------------------------------------------
Medical Assurance 1.7
Silicon Valley Bancshares 1.7
Community First Bankshares 1.6
Electro Rent 1.5
Analogic 1.5
- --------------------------------------------------------------------------------
Cross Timbers Oil 1.4
Consolidated Products 1.4
Furon 1.3
Aaron Rents 1.3
Saga Communications 1.3
- --------------------------------------------------------------------------------
Landauer 1.2
First Republic Bank 1.2
IT Group Pfd. 1.2
Giant Cement 1.2
CSS Industries 1.2
- --------------------------------------------------------------------------------
CORT Business Services 1.1
Sun Communities 1.1
Markel 1.0
Puerto Rican Cement 1.0
HS Resources 1.0
- --------------------------------------------------------------------------------
Total 36.2%
Note: Table excludes reserves.
7
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
- -------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
This chart shows the value of a hypothetical $10,000 investment in the 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.
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
As of 6/30/99
Small-Cap Value Fund $34,722
Russell 2000 Index $32,160
[LINE GRAPH APPEARS HERE]
Russell Small-Cap
2000 Value
Index Fund
6/89 10000 10000
6/90 10296 11016
6/91 10433 11480
6/92 11949 13287
6/93 15057 16946
6/94 15711 18319
6/95 18871 21444
6/96 23379 26802
6/97 27195 33054
6/98 31685 38982
6/99 32160 34722
- ---------------------------------------
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- --------------------------------------------------------------------------------
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Periods Ended 6/30/99 1 Year 3 Years 5 Years 10 Years
- ----------------------------------------------------------------
Small-Cap Value Fund -10.93% 9.01% 13.64% 13.26%
- ----------------------------------------------------------------
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
8
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Unaudited
For a share outstanding throughout each period
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 18.97 $ 23.40 $ 19.56 $ 16.53 $ 13.40 $ 14.68
Investment activities
Net investment income 0.05 0.25 0.21 0.22 0.18 0.13
Net realized and
unrealized gain (loss) 0.78 (3.23) 5.22 3.84 3.74 (0.35)
Total from
investment activities 0.83 (2.98) 5.43 4.06 3.92 (0.22)
Distributions
Net investment income - (0.25) (0.20) (0.23) (0.18) (0.14)
Net realized gain - (1.20) (1.39) (0.80) (0.61) (0.92)
Total distributions - (1.45) (1.59) (1.03) (0.79) (1.06)
NET ASSET VALUE
End of period $ 19.80 $ 18.97 $ 23.40 $ 19.56 $ 16.53 $ 13.40
Ratios/Supplemental Data
Total return* 4.38% (12.47)% 27.92% 24.61% 29.29% (1.38)%
Ratio of total expenses to
average net assets 0.94%+ 0.87% 0.87% 0.94% 0.98% 0.97%
Ratio of net investment
income to average
net assets 0.54%+ 1.02% 1.01% 1.28% 1.59% 0.93%
Portfolio turnover rate 4.7%+ 17.3% 14.6% 15.2% 18.1% 21.4%
Net assets, end of period
(in millions) $ 1,444 $ 1,632 $ 2,088 $ 1,410 $ 936 $ 408
</TABLE>
* 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
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Unaudited June 30, 1999
PORTFOLIO OF INVESTMENTS Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
COMMON STOCKS 93.5%
FINANCIAL 14.6%
Bank and Trust 5.6%
Columbia Bancorp 26,700 $ 357
Community First Bankshares 1,000,000 23,812
First International Bancorp + 475,000 6,205
First National Bank of Anchorage 2,800 2,888
First Republic Bank * + 600,000 17,363
Glacier Bancorp * 260,150 6,130
Silicon Valley Bancshares * 975,000 24,192
80,947
-----------
Insurance 6.2%
Brown and Brown + 825,000 31,350
Markel * 80,000 14,960
Medical Assurance * 870,000 24,577
NYMAGIC + 500,000 7,813
Presidential Life 200,000 3,906
PXRE 150,000 2,719
Triad Guaranty * 255,500 4,583
89,908
-----------
Financial Services 2.8%
Allied Capital 1,250,000 29,961
American Capital Strategies 212,000 3,849
Delta Financial * 450,000 2,869
Medallion Financial 200,000 3,806
40,485
-----------
Total Financial 211,340
-----------
UTILITIES 4.2%
Telephone 1.3%
Commnet Cellular * 500,000 13,234
Rural Cellular (Class A) * 270,000 5,400
18,634
-----------
Electric Utilities 2.9%
Black Hills 400,000 9,250
10
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Cleco 300,000 $ 9,113
Northwestern Public Service 300,000 7,256
Otter Tail Power 250,000 9,633
SIGCORP 253,100 7,166
42,418
-----------
Total Utilities 61,052
-----------
CONSUMER NONDURABLES 9.2%
Beverages 0.2%
Chalone Wine Group * 250,000 2,465
2,465
-----------
Food Processing 0.4%
Sylvan * + 520,000 6,094
6,094
-----------
Hospital Supplies/Hospital Management 2.7%
Allied Healthcare Products * + 400,000 694
Atrion * + 275,000 2,587
Intelligent Medical Imaging * + 890,000 612
IRIDEX * + 350,000 1,684
Landauer + 596,200 17,588
Lunar * 100,000 794
Minntech + 650,000 9,628
Owens & Minor 553,100 6,084
39,671
-----------
Pharmaceuticals 1.0%
Bone Care International * + 900,000 8,775
NPS Pharmaceuticals * 300,000 1,987
Quidel * 1,000,000 3,125
13,887
-----------
Biotechnology 0.6%
Cell Genesys * 700,000 2,997
Coulter Pharmaceutical * 150,000 3,379
Neurocrine Biosciences * 500,000 2,625
9,001
-----------
Miscellaneous Consumer Products 4.3%
Applied Extrusion Technologies * + 750,000 5,672
BWAY * + 750,000 10,687
11
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CSS Industries * + 600,000 $ 16,875
Culp 600,000 6,300
Dan River * 400,000 2,950
Fab Industries 241,800 3,733
Home Products International * 350,000 2,953
Liqui-Box 125,000 6,730
Martin Industries 400,000 888
Superior Uniform + 401,000 5,013
61,801
-----------
Total Consumer Nondurables 132,919
-----------
CONSUMER SERVICES 9.4%
Restaurants 3.9%
Consolidated Products * 1,100,000 19,800
Fresh Choice * + 540,000 1,063
Garden Fresh Restaurant * + 425,000 8,022
PJ America * 110,000 2,334
Rare Hospitality International * 400,000 10,238
Ruby Tuesday 600,000 11,400
Uno Restaurant * 400,000 3,750
56,607
-----------
General Merchandisers 0.3%
Bon-Ton Stores * 350,000 2,286
Fred's (Class A) 150,000 2,353
4,639
-----------
Specialty Merchandisers 3.1%
Building Materials * 450,000 5,175
Compucom Systems * 618,100 2,540
Goody's Family Clothing * 300,000 3,422
Hancock Fabrics + 1,500,000 6,562
Haverty Furniture 250,000 8,812
Jo Ann Stores (Class B) * 625,000 8,125
S & K Famous Brands * + 425,000 4,051
Stein Mart * 620,000 5,716
44,403
-----------
Entertainment and Leisure 0.3%
Seattle Filmworks * + 1,400,000 4,331
4,331
-----------
12
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Media and Communications 1.8%
Big City Radio * 450,000 $ 1,632
Courier + 225,000 5,217
Saga Communications (Class A) * 1,000,000 18,625
25,474
-----------
Total Consumer Services 135,454
-----------
CONSUMER CYCLICALS 10.0%
Automobiles and Related 2.5%
Keystone Automotive * 240,400 4,162
Littelfuse * 350,000 6,639
Myers Industries 150,000 3,000
R & B * 400,000 3,375
Strattec Security * 275,000 9,402
TBC * + 1,400,000 9,887
36,465
-----------
Building and Real Estate 5.5%
First Washington Realty Trust, REIT 400,000 9,350
Glenborough Realty Trust, REIT 500,000 8,750
Innkeepers USA, REIT 850,000 8,500
Kilroy Realty, REIT 100,000 2,438
National Health Investors, REIT 39,500 901
National Health Realty, REIT + 550,000 6,119
Pacific Gulf Properties, REIT 620,000 14,027
Skyline, REIT 418,500 12,267
Sun Communities, REIT 450,000 15,975
Western Water 350,000 1,181
79,508
-----------
Miscellaneous Consumer Durables 2.0%
Chromcraft Revington * + 1,000,000 14,437
CompX * 250,000 4,469
Juno Lighting * 20,898 513
Stanley Furniture * + 375,000 8,391
27,810
-----------
Total Consumer Cyclicals 143,783
-----------
13
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
TECHNOLOGY 5.8%
Electronic Components 2.2%
Analogic + 698,000 $ 21,703
Badger Meter 100,000 3,475
PCD * 350,000 3,916
Planar Systems * 400,000 3,075
32,169
-----------
Electronic Systems 0.5%
CEM * + 300,000 2,213
EDO 200,000 1,450
Perceptron * + 650,000 2,945
6,608
-----------
Telecommunications 0.0%
Syntellect * + 700,000 831
831
-----------
Aerospace and Defense 3.1%
COMARCO * + 400,000 7,900
DONCASTERS ADR * 100,000 1,750
Nichols Research * 400,000 8,725
OEA 900,000 7,987
Raven Industries + 350,000 5,622
TransTechnology 299,000 5,887
Woodward Governor 250,000 6,555
44,426
-----------
Total Technology 84,034
-----------
CAPITAL EQUIPMENT 4.7%
Electrical Equipment 3.5%
Franklin Electric 100,000 6,625
Holophane * + 700,000 26,687
LSI Industries 400,000 9,700
Thomas Industries 350,000 7,175
50,187
-----------
Machinery 1.0%
Alamo Group + 588,400 5,149
K-Tron * + 250,000 4,430
NN Ball & Roller 150,000 872
14
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------
In thousands
Scotsman Industries 175,000 $ 3,773
14,224
-----------
Capital Equipment 0.2%
Omniquip International 370,000 2,937
2,937
-----------
Total Capital Equipment 67,348
-----------
BUSINESS SERVICES AND
TRANSPORTATION 17.7%
Computer Service and Software 1.9%
Analysts International 620,000 8,893
Ardent Software * 500,000 10,610
SPSS * 310,400 7,983
27,486
-----------
Distribution Services 1.0%
Richardson Electronics + 700,000 4,747
Sunsource 325,000 4,205
TriStar Aerospace * 300,000 2,475
Valley National Gases * + 682,200 2,942
14,369
-----------
Environmental 1.5%
BHA Group (Class A) + 605,000 5,142
IT Group * + 850,000 13,653
TETRA Technologies * 150,000 1,378
Waterlink * 500,000 1,438
21,611
-----------
Transportation Services 2.4%
Frozen Food Express 400,000 3,062
Hub Group (Class A) * 121,900 2,743
International Shipholding + 664,000 9,545
Landstar Systems * 250,000 9,023
M.S. Carriers * 100,000 2,966
Transport Corp. of America * + 581,400 7,340
34,679
-----------
Miscellaneous Business Services 10.3%
Aaron Rents (Class A) 60,500 1,089
Aaron Rents (Class B) 790,000 17,577
Business Resource Group * + 360,000 1,159
15
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------
In thousands
Children's Comprehensive Services * 200,000 $ 1,369
CORT Business Services * + 670,000 16,038
Electro Rent * + 2,000,000 21,750
Hunt 91,500 755
Insituform Technologies
(Class A) * + 1,590,200 34,239
Ivex Packaging * 250,000 5,500
McGrath Rent + 1,298,000 25,473
MYR Group + 433,333 7,610
Packaged Ice * 280,000 1,671
Rainbow Rentals * 250,000 2,875
Right Management Consultants * + 500,000 7,813
Tab Products + 325,000 2,397
UniFirst 65,300 1,200
148,515
-----------
Airlines 0.6%
Midwest Express Holdings * 280,025 9,521
9,521
-----------
Total Business Services and
Transportation 256,181
-----------
ENERGY 3.3%
Energy Services 1.5%
Carbo Ceramics 200,000 6,031
Newpark Resources * 380,000 3,373
Pitt-DesMoines 190,000 11,875
21,279
-----------
Exploration and Production 1.8%
Brigham Exploration * 550,000 1,117
Chieftain International * 250,000 4,375
Cross Timbers Oil 300,000 4,462
HS Resources * + 1,000,000 14,750
Key Energy * 350,000 1,247
25,951
-----------
Total Energy 47,230
-----------
PROCESS INDUSTRIES 7.1%
Diversified Chemicals 0.5%
Aceto + 580,000 6,598
6,598
-----------
16
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
in thousands
Specialty Chemicals 2.4%
Eco Soil Systems * 350,000 $ 1,903
Furon + 1,000,000 19,000
Hauser * 150,000 834
Synalloy + 500,000 3,891
Tuscarora + 700,000 9,428
35,056
-----------
Paper and Paper Products 1.3%
Republic Group 451,400 8,125
Wausau-Mosinee Paper 600,000 10,800
18,925
-----------
Building and Construction 2.9%
Cameron Ashley * 400,000 4,175
CorrPro Companies * 300,000 2,588
Giant Cement * + 750,000 17,039
Layne Christensen * + 600,000 3,900
Puerto Rican Cement + 450,000 14,934
42,636
-----------
Total Process Industries 103,215
-----------
BASIC MATERIALS 6.2%
Metals 2.2%
Cold Metal Products * + 350,000 940
Gibraltar Steel * 448,800 11,052
Lone Star Technologies * 300,000 5,325
Material Sciences * 620,000 9,300
Shiloh Industries * 290,000 4,187
30,804
-----------
Mining 0.5%
Agnico Eagle Mines 410,000 2,537
Gold Fields (ZAR) 736,922 2,528
Golden Star Resources (CAD) * 1,000,000 813
Resolute Limited (AUD) 3,000,000 1,507
7,385
-----------
Miscellaneous Materials 3.5%
Ameron International + 202,900 8,953
Oil-Dri + 500,000 8,000
17
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
in thousands
Optical Coating Laboratory 161,800 $ 13,525
Penn Virginia + 500,000 9,875
Synthetic Industries * 345,200 10,270
50,623
-----------
Total Basic Materials 88,812
-----------
EDUCATION 0.0%
Childtime Learning Centers * 2,000 31
Total Education 31
-----------
INVESTMENT COMPANIES 0.3%
First Financial Fund 550,000 4,812
Total Investment Companies 4,812
-----------
MISCELLANEOUS 1.0%
Integrated Water Technology * +++ 200,000 231
Natrol * 400,000 3,075
Other Miscellaneous Common Stocks 11,191
-----------
Total Miscellaneous 14,497
-----------
Total Common Stocks (Cost $1,063,680) 1,350,708
-----------
PREFERRED STOCKS 0.3%
Prime Retail, (Series A) Cum.,10.50%, REI
200,000 4,088
Total Preferred Stocks (Cost $3,766) 4,088
-----------
CONVERTIBLE PREFERRED STOCKS 1.8%
Chieftain Intl., $1.8125 42,800 1,118
Cross Timbers Oil (Series A) 480,390 15,372
IT Group, 7.00% + 155,000 3,449
Prime Retail, (Series B) 8.50% 350,000 5,600
Western Water (Series C) * 2,259 459
Total Convertible Preferred Stocks
(Cost $23,430) 25,998
-----------
18
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS 0.5%
Builders Transport, Deb., 6.50%,
5/1/11 $ 1,158,000 $ 17
Builders Transport, Deb., 8.00%,
8/15/05 1,700,000 26
Glycomed, Sub. Deb., 7.50%,
1/1/03 4,000,000 3,260
Leasing Solutions, Conv. Sub.
Notes, 6.875%, 10/1/03 4,000,000 240
Offshore Logistics, Sub. Notes,
(144a) 6.00%, 12/15/03 2,000,000 1,685
OHM, 8.00%, 10/1/06 30,000 28
Richardson Electronics, Sr. Sub.
Notes, 7.25%, 12/15/06 + 3,516,000 2,725
Total Convertible Bonds (Cost
$12,526) 7,981
-----------
CORPORATE BONDS 0.2%
Delta Financial, 9.50%, 8/1/04 3,000,000 2,580
Total Corporate Bonds
(Cost $2,988) 2,580
-----------
SHORT-TERM INVESTMENTS 3.4%
Money Market Fund 3.4%
Reserve Investment Fund, 5.05% # 48,718,525 48,719
Total Short-Term Investments
(Cost $48,719) 48,719
-----------
Total Investments in Securities
99.7% of Net Assets (Cost $1,155,110) $1,440,074
Other Assets Less Liabilities 3,926
-----------
NET ASSETS $1,444,000
-----------
+ Affiliated company
++ Securities contain some restrictions as to public resale -- total of
such securities at period-end amounts to 0.02% of net assets.
* Non-income producing
# Seven-day yield
144a Security was purchased pursuant to Rule 144a under the Securities Act
of 1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at period-end amounts
to 0.1% of net assets.
ADR American depository receipt
REIT Real Estate Investment Trust
AUD Australian dollar
CAD Canadian dollar
ZAR South African rand
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Unaudited June 30, 1999
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value
Affiliated companies (cost $454,800) $ 554,563
Other companies (cost $700,310) 885,511
--------------
Total investments in securities 1,440,074
Other assets 17,538
--------------
Total assets 1,457,612
Liabilities
Total liabilities 13,612
--------------
NET ASSETS $ 1,444,000
--------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 4,121
Accumulated net realized gain/loss - net of distributions 38,777
Net unrealized gain (loss) 284,964
Paid-in-capital applicable to 72,929,389 shares of
$0.01 par value capital stock outstanding;
1,000,000,000 shares authorized 1,116,138
--------------
NET ASSETS $ 1,444,000
--------------
NET ASSET VALUE PER SHARE $ 19.80
--------------
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Unaudited
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
In thousands
6 Months
Ended
6/30/99
Investment Income
Income
Dividend (including $3,328 from affiliated companies) $ 8,934
Interest (including $155 from affiliated companies) 1,410
--------------
Total income 10,344
--------------
Expenses
Investment management 4,700
Shareholder servicing 1,666
Prospectus and shareholder reports 113
Custody and accounting 73
Registration 28
Legal and audit 9
Directors 5
Miscellaneous 6
--------------
Total expenses 6,600
Expenses paid indirectly (5)
--------------
Net expenses 6,594
--------------
Net investment income 3,750
--------------
Realized and Unrealized Gain (Loss) on securities
Net realized gain (loss)
Securities (including ($10,999) from affiliated companies) 24,457
Foreign currency transactions (8)
--------------
Net realized gain (loss) 24,449
--------------
Change in net unrealized gain or loss on securities
(including ($12,431) from affiliated companies) 18,176
--------------
Net realized and unrealized gain (loss) 42,625
--------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 46,375
--------------
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
6/30/99 12/31/98
Increase (Decrease) in Net Assets
Operations
Net investment income $ 3,750 $ 19,695
Net realized gain (loss) 24,449 97,920
Change in net unrealized gain or loss 18,176 (369,820)
---------------------------
Increase (decrease) in net assets from operations 46,375 (252,205)
---------------------------
Distributions to shareholders
Net investment income - (20,063)
Net realized gain - (96,286)
Decrease in net assets from distributions - (116,349)
---------------------------
Capital share transactions *
Shares sold 207,422 456,561
Distributions reinvested - 109,998
Shares redeemed (441,796) (654,433)
Redemption fees received 59 151
---------------------------
Increase (decrease) in net assets from capital
share transactions (234,315) (87,723)
---------------------------
Net Assets
Increase (decrease) during period (187,940) (456,277)
Beginning of period 1,631,940 2,088,217
---------------------------
End of period $1,444,000 $ 1,631,940
---------------------------
* Share information
Shares sold 11,355 20,522
Distributions reinvested - 6,044
Shares redeemed (24,442) (29,793)
---------------------------
Increase (decrease) in shares outstanding (13,087) (3,227)
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Unaudited June 30, 1999
- -----------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Small-Cap Value Fund, Inc. (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company and commenced operations on June 30, 1988.
The accompanying 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 Equity securities listed or regularly traded on a securities
exchange are valued at the last quoted sales price on the day the
valuations are made. A security which is listed or traded on more than one
exchange is valued at the quotation on the exchange determined to be the
primary market for such security. Listed securities not traded on a
particular day and securities regularly traded in the over-the-counter
market are valued at the mean of the latest bid and asked prices. Other
equity securities are valued at a price within the limits of the latest bid
and asked prices deemed by the Board of Directors, or by persons delegated
by the Board, best to reflect fair value.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers
who make markets in these securities or by an independent pricing service.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of
such currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of the fund, as authorized by the Board of Directors.
Affiliated Companies As defined by the Investment Company Act of 1940, an
affiliated company is one in which the fund owns at least 5% of the
outstanding voting securities.
23
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated
into U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized
and unrealized security gains and losses is reflected as a component of
such gains and losses.
Premiums and Discounts Premiums and discounts on debt securities are
amortized for both financial reporting and tax purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with federal income tax regulations and may differ from those determined in
accordance with generally accepted accounting principles. Expenses paid
indirectly reflect credits earned on daily, uninvested cash balances at the
custodian, used to reduce the fund's custody charges.
NOTE 2 - INVESTMENT TRANSACTIONS
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $32,856,000 and $272,733,000, respectively, for the
six months ended June 30, 1999.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income.
At June 30, 1999, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$1,155,110,000. Net unrealized gain aggregated $284,964,000 at period-end,
of which $450,390,000 related to appreciated investments and $165,426,000
to depreciated investments.
24
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
NOTE 4 - RELATED PARTY TRANSACTIONS
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management
fee, of which $771,000 was payable at June 30, 1999. The fee is computed
daily and paid monthly, and consists of an individual fund fee equal to
0.35% of average daily net assets and a group fee. The group fee is based
on the combined assets of certain mutual funds sponsored by the manager or
Rowe Price-Fleming International, Inc. (the group). The group fee rate
ranges from 0.48% for the first $1 billion of assets to 0.30% for assets in
excess of $80 billion. At June 30, 1999, and for the six months then ended,
the effective annual group fee rate was 0.32%. The fund pays a pro-rata
share of the group fee based on the ratio of its net assets to those of the
group.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund
receives certain other services. The manager computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services,
Inc. is the fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the fund. T. Rowe Price
Retirement Plan Services, Inc. provides subaccounting and recordkeeping
services for certain retirement accounts invested in the fund. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $1,443,000 for the six months ended June 30, 1999, of which
$286,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and other
accounts managed by T. Rowe Price and its affiliates and are not available
to the public. The Reserve Funds pay no investment management fees.
Distributions from the Reserve Funds to the fund for the six months ended
June 30, 1999, totaled $732,000 and are reflected as interest income in the
accompanying Statement of Operations.
25
<PAGE>
T. ROWE PRICE SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------
INVESTMENT SERVICES AND INFORMATION
Knowledgeable Service Representatives
By Phone 1-800-225-5132 Available Monday through Friday from 8 a.m. to
10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
Account Services
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your
distributions.
Automated 24-Hour Services Including Tele*Access(R) and the T. Rowe
Price Web site on the Internet. Address: www.troweprice.com
Brokerage Services*
Individual Investments Stocks, bonds, options, precious metals, and
other securities at a savings over full-service commission rates.**
Investment Information
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and
results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial
markets.
Investment Guides Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning
Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a January 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending
on size of order.
26
<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 Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
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 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 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
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
* Closed to new investors. ** Formerly named Florida Insured Intermediate
Tax-Free. *** Formerly named Tax-Free Insured Intermediate Bond.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
funds.
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.
27
<PAGE>
T. ROWE PRICE RETIREMENT PLANS AND RESOURCES
- --------------------------------------------------------------------------------
RETIREMENT PLANS AND RESOURCES
We recognize that saving for retirement is the number one investment
goal for most Americans. We can help you meet your retirement needs,
whether you are starting an IRA or designing a retirement program for
your employees. T. Rowe Price offers an assortment of retirement plans
for individuals, the self-employed, small businesses, corporations,
and nonprofit organizations. We provide recordkeeping, communications,
and investment management services, as well as a variety of
educational materials, self-help planning guides, and software tools
to help you choose and implement a retirement plan appropriate for
you. For information or to request literature, call us at
1-800-638-5660.
IRAs AND QUALIFIED PLANS
Traditional IRA
Roth IRA
Rollover IRA
SEP-IRA
SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase Pension and Profit Sharing Plans)
401(k)
403(b)
457 Deferred Compensation
RETIREMENT RESOURCES AT T. ROWE PRICE
Planning and Informational Guides
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
Investment Kits
The IRA Investing Kit
Roth IRA Conversion Kit
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh Plan(R) From
T. Rowe Price
The T. Rowe Price 401(k) Century Plan(R) (for small businesses)
Money Purchase Pension/Profit Sharing
Plan Kit
Investing for Retirement in Your 403(b)
Account
The T. Rowe Price No-Load Variable
Annuity Information Kit
Insights Reports
The Challenge of Preparing for
Retirement
Financial Planning After Retirement
The Roth IRA: A Review
Software Packages
T. Rowe Price Retirement Planning Analyzer(TM) CD-ROM or diskette $19.95. To
order, please call 1-800-541-5760. Also available on the Internet for
$9.95.
T. Rowe Price Variable Annuity Analyzer(TM) CD-ROM or diskette, free. To order,
please call 1-800-469-5304.
Many of these resources are also available for viewing or ordering on the
Internet at www.troweprice.com.
28
<PAGE>
T. ROWE PRICE INSIGHTS REPORTS
THE FUNDAMENTALS OF INVESTING
Whether you are unsure how to get started or are saving for a specific
goal, such as retirement or college, the T. Rowe Price Insights series
can help you make informed investment decisions. These reports,
written in plain English about fundamental investment topics, can be
useful at every stage of your investment journey. They cover a range
of topics, from the basic, such as getting started with mutual funds,
to the more advanced, such as managing risk through diversification or
buying individual securities through a broker. To request one or more
Insights, call us at 1-800-638-5660.
INSIGHTS REPORTS
- -------------------------------------------------------------------------------
General Information
The ABCs of Y2K
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
Investment Strategies
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
Types of Securities
The Basics of International Stock Investing
The Basics of Tax-Free Investing
The Fundamentals of Fixed Income Investing
Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks
Understanding Derivatives
Understanding High-Yield "Junk" Bonds
Brokerage Insights
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
29
<PAGE>
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(R):
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 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 appropriate
to the fund or funds covered in this
report.
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
4200 West Cypress St.
10th Floor
Tampa, FL 33607
4410 ArrowsWest Drive
Colorado Springs, CO 80907
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills, CA 91367
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. F46-051 6/30/99
