<PAGE>
- --------------------------------------------------------------------------------
Annual Report - Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price
Total Equity Market
Index Fund
-----------------
December 31, 1998
-----------------
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
- --------------------
Financial Highlights For a share outstanding throughout the period
- --------------------------------------------------------------------------------
1/30/98
Through
12/31/98
NET ASSET VALUE
Beginning of period $ 10.00
.............
Investment activities
Net investment income 0.11
Net realized and unrealized gain (loss) 2.20
.............
Total from investment activities 2.31
.............
Distributions
Net investment income (0.12)
.............
NET ASSET VALUE
End of period $ 12.19
-------------
Ratios/Supplemental Data
Total return* 23.19%
................................................................................
Ratio of expenses to average net assets 0.40%+
................................................................................
Ratio of net investment income to average net assets 1.33%+
................................................................................
Portfolio turnover rate 1.9%+
................................................................................
Net assets, end of period (in thousands) $ 61,210
................................................................................
* Total return reflects the rate that an investor would have earned on an
investment in the fund during the 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.
2
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- -----------------------------------------------------------------------------
December 31,1998
- -----------------------
Statement of Net Assets Shares/Par Value
- -----------------------------------------------------------------------------
In thousands
Common Stocks 95.6%
BASIC MATERIALS 0.5%
Aluminum 0.2%
Alcoa 900 $ 67
.............................................................................
Reynolds Metals 500 26
.............................................................................
93
..............
Iron & Steel 0.1%
USX-U.S. Steel 900 21
.............................................................................
Worthington Industries 1,600 20
.............................................................................
Carpenter Technology 400 13
.............................................................................
Titan International 700 7
.............................................................................
61
..............
Miscellaneous Mining, Metals 0.1%
General Cable 1,100 23
.............................................................................
Cyprus Amax Minerals 1,700 17
.............................................................................
Brush Wellman 900 16
.............................................................................
ASARCO 1,000 15
.............................................................................
Titanium Metals 500 4
.............................................................................
75
..............
Precious Metals 0.1%
Newmont Mining 1,700 31
.............................................................................
Homestake Mining 2,700 25
.............................................................................
Coeur d'Alene Mines * 500 2
.............................................................................
58
..............
Total Basic Materials 287
..............
BUSINESS SERVICES AND
TRANSPORTATION 3.6%
Advertising 0.3%
Omnicom 1,000 58
.............................................................................
Interpublic Group 700 56
.............................................................................
Harte-Hanks 1,200 34
.............................................................................
True North Communications 600 16
.............................................................................
164
..............
Airlines 0.5%
FDX * 900 80
.............................................................................
3
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
AMR * 900 $ 54
................................................................................
Delta 1,000 52
................................................................................
Southwest Airlines 2,150 48
................................................................................
Alaska Air Group * 700 31
................................................................................
Continental Airlines * 900 30
................................................................................
Mesaba Holdings * 750 16
................................................................................
TWA * 1,900 9
................................................................................
320
.................
Engineering Services 0.0%
EG&G 900 25
................................................................................
25
.................
Pollution Control 0.3%
Waste Management 2,960 138
................................................................................
Browning-Ferris 1,200 34
................................................................................
Allied Waste Industries * 1,060 25
................................................................................
Newpark Resources * 800 6
................................................................................
203
.................
Railroads 0.5%
Burlington Northern Santa Fe 2,400 81
................................................................................
Norfolk Southern 1,900 60
................................................................................
Union Pacific 1,300 59
................................................................................
CSX 1,300 54
................................................................................
Kansas City Southern Industries 800 39
................................................................................
MotivePower * 300 10
................................................................................
Wisconsin Central Transport * 500 8
................................................................................
311
.................
Service 1.8%
Cendant * 4,800 91
................................................................................
Marsh & McLennan 1,350 79
................................................................................
Paychex 1,050 54
................................................................................
Service Corp. International 1,400 53
................................................................................
ServiceMaster 2,200 49
................................................................................
H&R Block 1,000 45
................................................................................
Express Scripts * 600 40
................................................................................
Republic Industries * 2,700 40
................................................................................
Dun & Bradstreet 1,000 32
................................................................................
NOVA * 900 31
................................................................................
Ryder System 1,200 31
................................................................................
4
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Manpower 1,200 $ 30
................................................................................
Cintas 400 28
................................................................................
Equifax 800 27
................................................................................
ProBusiness Services * 600 27
................................................................................
Erie Indemnity 800 25
................................................................................
Sylvan Learning Systems * 800 24
................................................................................
UICI * 1,000 24
................................................................................
Hertz 500 23
................................................................................
Assisted Living Concepts * 1,700 22
................................................................................
Rollins 1,200 21
................................................................................
R.H. Donnelley 1,440 21
................................................................................
Olsten 2,800 21
................................................................................
Policy Management Systems * 400 20
................................................................................
Nielsen Media Research 1,100 20
................................................................................
Startek * 1,500 19
................................................................................
Miami Computer Supply * 750 19
................................................................................
Corrections Corp. of America * 1,000 18
................................................................................
Wackenhut Corrections * 600 17
................................................................................
Gartner Group (Class A) * 700 15
................................................................................
First Health Group * 800 13
................................................................................
Central Parking 400 13
................................................................................
Dollar Thrifty Auto Group * 1,000 13
................................................................................
Staff Leasing * 1,000 12
................................................................................
Energy Research * 800 11
................................................................................
Thomas Group * 1,100 11
................................................................................
BioReliance * 1,200 10
................................................................................
GP Strategies * 600 9
................................................................................
Group Maintenance America * 700 8
................................................................................
RemedyTemp (Class A) * 500 8
................................................................................
Coast Dental Services * 600 6
................................................................................
1,080
.................
Transport by Water 0.1%
Royal Caribbean Cruises 900 33
................................................................................
Overseas Shipholding Group 800 13
................................................................................
Avondale Industries * 400 12
................................................................................
58
.................
Trucking, Freight 0.1%
Werner Enterprises 1,325 23
................................................................................
5
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
M.S. Carriers * 700 $ 23
................................................................................
USA Truck * 1,100 13
................................................................................
C.H. Robinson Worldwide 300 8
................................................................................
67
.................
Total Business Services and Transportation 2,228
.................
CAPITAL EQUIPMENT 5.1%
Industrial Manufacturing 4.3%
GE 15,100 1,541
................................................................................
3M 2,000 142
................................................................................
United Technologies 1,200 130
................................................................................
AlliedSignal 2,500 111
................................................................................
Illinois Tool Works 1,300 75
................................................................................
Textron 900 68
................................................................................
Dover 1,500 55
................................................................................
Corning 1,100 49
................................................................................
TRW 800 45
................................................................................
ITT Industries 1,000 40
................................................................................
Cooper Industries 800 38
................................................................................
Danaher 600 33
................................................................................
Trinity Industries 700 27
................................................................................
Briggs & Stratton 500 25
................................................................................
Walter Industries * 1,600 24
................................................................................
U.S. Industries 1,300 24
................................................................................
Precision Castparts 500 22
................................................................................
Carlisle Companies 400 21
................................................................................
Coltec Industries * 1,000 20
................................................................................
Essef * 1,000 19
................................................................................
Tecumseh Products 400 19
................................................................................
Commercial Metals 600 17
................................................................................
Stanley Works 600 17
................................................................................
Tokheim Corp * 1,600 16
................................................................................
Watts Industries (Class A) 800 13
................................................................................
Commercial Intertech 900 12
................................................................................
Wolverine Tube * 400 8
................................................................................
Easco 900 7
................................................................................
Zoltek * 300 3
................................................................................
2,621
.................
6
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Producers Goods 0.8%
Caterpillar 2,000 $ 92
................................................................................
Ingersoll-Rand 1,100 52
................................................................................
Deere 1,500 50
................................................................................
Eaton 600 42
................................................................................
Genuine Parts 1,200 40
................................................................................
American Power Conversion * 800 39
................................................................................
W. W. Grainger 800 33
................................................................................
Premark International 600 21
................................................................................
Aviation Sales * 500 20
................................................................................
Baldor Electric 1,000 20
................................................................................
AAON * 2,100 20
................................................................................
UCAR International * 900 16
................................................................................
Thomas Industries 800 16
................................................................................
Howmet International * 600 10
................................................................................
Bridgeport Machines * 1,200 7
................................................................................
Unique Mobility * 500 3
................................................................................
Waterlink * 300 1
................................................................................
482
.................
Total Capital Equipment 3,103
.................
CONSUMER CYCLICALS 3.3%
Consumer Durables 0.3%
Shaw Industries 1,500 36
................................................................................
WestPoint Stevens * 900 28
................................................................................
Linens `n Things * 700 28
................................................................................
Mohawk Industries * 600 25
................................................................................
HON Industries 1,000 24
................................................................................
O'Sullivan Industries * 1,600 17
................................................................................
Interface (Class A) 1,700 16
................................................................................
Rival 900 12
................................................................................
186
.................
Construction 0.5%
Masco 1,900 55
................................................................................
Centex 900 41
................................................................................
Sherwin-Williams 1,300 38
................................................................................
USG 500 26
................................................................................
7
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Jacobs Engineering Group * 600 $ 24
................................................................................
Armstrong World 400 24
................................................................................
Lafarge 500 20
................................................................................
Lennar 600 15
................................................................................
Genlyte Group * 800 15
................................................................................
Baltek Corp * 1,100 12
................................................................................
TJ International 400 10
................................................................................
280
................
Motor Vehicles 1.3%
Ford Motor 5,700 335
................................................................................
Harley-Davidson 1,000 47
................................................................................
Dana 900 37
................................................................................
Lear * 800 31
................................................................................
Modine Manufacturing 800 29
................................................................................
GM * 3,200 229
................................................................................
Polaris Industries 700 27
................................................................................
Shiloh Industries * 1,600 21
................................................................................
Navistar * 700 20
................................................................................
Arctic Cat 1,900 19
................................................................................
OEA 1,000 12
................................................................................
807
................
Real Estate 1.1%
Equity Office Properties, REIT 1,600 38
................................................................................
Equity Residential Properties Trust, REIT 800 32
................................................................................
Santa Anita Realty Enterprises, REIT 1,990 30
................................................................................
Catellus Development * 2,000 29
................................................................................
Avalonbay Communities, REIT 807 28
................................................................................
Prologis Trust, REIT 1,300 27
................................................................................
Chateau Communities, REIT 900 26
................................................................................
Archstone Communities Trust, REIT 1,300 26
................................................................................
D.R. Horton 1,100 25
................................................................................
Starwood Hotels & Resorts, REIT 1,100 25
................................................................................
AMB Property 1,100 24
................................................................................
Felcor Suite Hotels, REIT 1,048 24
................................................................................
Federal Realty Investment Trust, REIT 1,000 24
................................................................................
Vornado Realty Trust, REIT 700 24
................................................................................
CBL & Associates Properties, REIT 900 23
................................................................................
Simon DeBartolo Group, REIT 800 23
................................................................................
8
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Pulte 800 $ 22
................................................................................
Nationwide Health Properties, REIT 1,000 22
................................................................................
Boston Properties, REIT 700 21
................................................................................
Duke Realty Investments, REIT 900 21
................................................................................
Brandywine Realty Trust 1,100 20
................................................................................
Apartment Investment & Management, REIT 500 19
................................................................................
CCA Prison Realty Trust, REIT 900 18
................................................................................
Camden Property Trust, REIT 700 18
................................................................................
Trammell Crow * 600 17
................................................................................
Crescent Real Estate Equities, REIT 700 16
................................................................................
Parkway Properties, REIT 500 16
................................................................................
Manufactured Home Communities, REIT 600 15
................................................................................
Developers Diversified Realty, REIT 800 14
................................................................................
JP Realty, REIT 700 14
................................................................................
Patriot American Hospitality, REIT 1,668 10
................................................................................
691
................
Tire & Rubber 0.1%
Goodyear Tire & Rubber 1,100 55
................................................................................
Bandag 400 16
................................................................................
71
................
Total Consumer Cyclicals 2,035
................
CONSUMER NONDURABLES 8.9%
Agriculture 1.7%
Sara Lee 4,800 135
................................................................................
Campbell 2,100 116
................................................................................
Heinz 1,700 96
................................................................................
ConAgra 2,640 83
................................................................................
Kellogg 2,300 78
................................................................................
Bestfoods 1,400 75
................................................................................
Archer Daniels Midland 4,105 71
................................................................................
General Mills 900 70
................................................................................
Wrigley 700 63
................................................................................
RJR Nabisco 1,900 56
................................................................................
Hershey Foods 900 56
................................................................................
Pioneer Hi-Bred 1,800 49
................................................................................
Nabisco Holdings (Class A) 700 29
................................................................................
9
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Hormel Foods 700 $ 23
................................................................................
Vlasic Foods * 960 23
................................................................................
Fresh Del Monte Produce * 800 17
................................................................................
International Home Foods * 1,000 17
................................................................................
1,057
................
Beverages 1.9%
Coca-Cola 11,300 756
................................................................................
PepsiCo 6,800 278
................................................................................
Coca-Cola Enterprises 1,800 64
................................................................................
Quaker Oats 700 42
................................................................................
Whitman 1,300 33
................................................................................
TRIARC COMPANIES * 500 8
................................................................................
Pure World * 800 7
................................................................................
1,188
................
Container 0.3%
Sealed Air * 700 36
................................................................................
Tenneco 1,000 34
................................................................................
Crown Cork & Seal 900 27
................................................................................
US Can * 1,300 23
................................................................................
Ball 500 23
................................................................................
Sonoco Products 700 21
................................................................................
164
................
Cosmetics 1.1%
Procter & Gamble 6,000 548
................................................................................
Avon 1,700 75
................................................................................
Alberto Culver (Class B) 1,100 29
................................................................................
Block Drug 412 18
................................................................................
Revlon (Class A) * 400 7
................................................................................
Carson * 800 3
................................................................................
680
................
Leisure, Luxury 0.6%
Carnival (Class A) 3,200 154
................................................................................
Hilton 1,900 36
................................................................................
Hasbro 1,000 36
................................................................................
Mattel 1,500 34
................................................................................
Rio Hotel & Casino * 1,700 27
................................................................................
Cedar Fair 900 24
................................................................................
Action Performance * 600 21
................................................................................
10
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Callaway Golf 1,600 $ 16
................................................................................
WMS Industries 600 5
................................................................................
353
.................
Liquor 0.4%
Anheuser-Busch 2,500 164
................................................................................
Fortune Brands 1,200 38
................................................................................
Todhunter * 1,500 12
................................................................................
214
.................
Photographic, Optical 0.2%
Eastman Kodak 1,800 130
................................................................................
X-Rite 1,600 12
................................................................................
142
.................
Soaps, Housewares 1.3%
Gillette 5,300 256
................................................................................
Kimberly-Clark 2,700 147
................................................................................
Colgate-Palmolive 1,200 112
................................................................................
Clorox 600 70
................................................................................
Ralston Purina 1,500 49
................................................................................
Newell 1,000 41
................................................................................
Rubbermaid 1,000 31
................................................................................
NACCO Industries (Class A) 300 28
................................................................................
Dial Corp 800 23
................................................................................
Tupperware 1,000 16
................................................................................
Dixon Ticonderoga Company * 700 8
................................................................................
781
.................
Textiles and Apparel 0.3%
NIKE (Class B) 1,400 57
................................................................................
V.F. 800 37
................................................................................
Jones Apparel Group * 1,500 33
................................................................................
Polo Ralph Lauren * 1,100 21
................................................................................
K-Swiss (Class A) 700 19
................................................................................
Kellwood 600 15
................................................................................
Worldtex * 3,100 11
................................................................................
Rocky Shoes & Boots * 1,200 7
................................................................................
Gymboree * 900 6
................................................................................
206
.................
Tobacco 1.1%
Philip Morris 11,000 589
................................................................................
11
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
UST 900 $ 31
................................................................................
Brooke Group 1,000 24
................................................................................
644
................
Total Consumer Nondurables 5,429
................
CONSUMER SERVICES 11.0%
Hotels & Restaurant 0.8%
McDonald's 3,300 253
................................................................................
Marriott (Class A) 1,700 49
................................................................................
Tricon Global Restaurants * 800 40
................................................................................
Wendys 1,400 31
................................................................................
Papa Johns * 600 26
................................................................................
Brinker * 900 26
................................................................................
Applebee's 1,100 23
................................................................................
Bob Evans Farms 800 21
................................................................................
Sodexho Marriott Services * 450 12
................................................................................
John Q. Hammons Hotels (Class A) * 1,600 6
................................................................................
487
................
Media 3.0%
Time Warner 5,900 366
................................................................................
Disney 9,300 279
................................................................................
Tele-Communications (Class A) * 2,400 133
................................................................................
US WEST Media 2,800 132
................................................................................
Viacom (Class B) * 1,700 126
................................................................................
CBS 3,700 121
................................................................................
Comcast (Class A Special) 1,800 106
................................................................................
Cox Communications (Class A) * 1,400 97
................................................................................
Clear Channel Communications * 1,400 76
................................................................................
Tribune 800 53
................................................................................
Chancellor Media * 1,100 53
................................................................................
Tele-Communications TCI Ventures * 2,100 50
................................................................................
E. W. Scripps 700 35
................................................................................
Jacor Communications * 500 32
................................................................................
A. H. Belo (Class A) 1,400 28
................................................................................
GC Companies * 600 25
................................................................................
King World Productions * 800 24
................................................................................
Century Communications (Class A) * 700 22
................................................................................
12
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
USA Networks * 600 $ 20
................................................................................
Univision Communications * 500 18
................................................................................
SFX Entertainment (Class A) * 300 16
................................................................................
Electromagnetic Sciences * 900 13
................................................................................
BHC Communications (Class A) 100 12
................................................................................
Metro Goldwyn Mayer * 600 8
................................................................................
Granite Broadcasting 400 2
................................................................................
1,847
.................
Publishing 0.7%
Gannett 1,500 97
................................................................................
McGraw-Hill 600 61
................................................................................
R.R. Donnelley 1,200 53
................................................................................
Scholastic * 600 32
................................................................................
Valassis Communications * 600 31
................................................................................
New York Times (Class A) 800 28
................................................................................
Hollinger International 1,800 25
................................................................................
PRIMEDIA * 1,900 22
................................................................................
Central Newspapers (Class A) 300 21
................................................................................
American Greetings (Class A) 500 21
................................................................................
Franklin Covey * 1,200 20
................................................................................
John H. Harland 1,100 17
................................................................................
TST/ Impreso * 300 1
................................................................................
429
.................
Retail- Clothing 0.7%
The Gap 2,900 163
................................................................................
TJX 2,200 64
................................................................................
Intimate Brands 1,800 54
................................................................................
The Limited 1,500 44
................................................................................
Abercrombie & Fitch (Class A) * 408 29
................................................................................
Nordstrom 700 24
................................................................................
Venator Group * 2,500 16
................................................................................
Goody's Family Clothing * 600 6
................................................................................
Gadzooks * 300 2
................................................................................
402
.................
Retail- Computer/Electric 0.2%
Tandy 900 37
................................................................................
Best Buy * 600 37
................................................................................
Ingram Micro * 500 17
................................................................................
13
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Safeguard Scientifics * 600 $ 17
................................................................................
Tech Data * 400 16
................................................................................
CHS Electronics * 700 12
................................................................................
136
................
Retail- Food 0.9%
Safeway * 2,600 158
................................................................................
Albertson's 1,300 83
................................................................................
Kroger * 1,300 79
................................................................................
American Stores 1,900 70
................................................................................
Sysco 2,000 55
................................................................................
Winn-Dixie 1,100 49
................................................................................
Starbucks * 400 22
................................................................................
Whole Foods Market * 300 15
................................................................................
DiMon 1,500 11
................................................................................
Western Beef * 1,500 11
................................................................................
United Natural Foods * 300 7
................................................................................
560
................
Retail- General Department 2.6%
Wal-Mart 10,200 831
................................................................................
Dayton Hudson 1,800 98
................................................................................
Costco Companies * 1,200 87
................................................................................
Sears 1,900 81
................................................................................
May Department Stores 1,100 66
................................................................................
J.C. Penney 1,400 66
................................................................................
Kohl's * 800 49
................................................................................
Kmart * 2,900 44
................................................................................
Fred Meyer * 600 36
................................................................................
Saks * 1,075 34
................................................................................
Federated Department Stores * 700 30
................................................................................
Dillards 1,000 28
................................................................................
BJ's Wholesale Club * 600 28
................................................................................
Family Dollar Stores 1,000 22
................................................................................
Consolidated Stores * 1,000 20
................................................................................
Value City Department Stores * 1,200 17
................................................................................
ShopKo Stores * 500 17
................................................................................
Ames Department Stores * 300 8
................................................................................
1,562
................
14
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Retail-Other 2.1%
Home Depot 7,000 $ 428
................................................................................
Walgreen 2,700 158
................................................................................
CVS 2,200 121
................................................................................
Amazon.com * 300 96
................................................................................
Lowes 1,700 87
................................................................................
Staples * 1,900 83
................................................................................
Rite Aid 1,400 69
................................................................................
Office Depot * 1,400 52
................................................................................
AutoZone * 1,300 43
................................................................................
CDW Computer Centers * 400 39
................................................................................
Bed Bath & Beyond * 1,000 34
................................................................................
Lands' End * 1,100 30
................................................................................
Toys "R" Us * 1,500 25
................................................................................
OfficeMax * 1,400 17
................................................................................
Corporate Express * 2,800 15
................................................................................
Jo Ann Stores (Class A) * 500 8
................................................................................
1,305
.................
Total Consumer Services 6,728
.................
ENERGY 5.2%
Coal & Uranium 0.0%
Arch Coal 200 3
................................................................................
3
.................
Domestic Petroleum Reserve 0.5%
Atlantic Richfield 1,600 104
................................................................................
Phillips Petroleum 1,500 64
................................................................................
Burlington Resources 1,300 47
................................................................................
Anadarko Petroleum 1,100 34
................................................................................
Southwestern Energy 3,100 23
................................................................................
Devon Energy 600 18
................................................................................
Union Pacific Resources 1,800 16
................................................................................
EEX * 2,133 15
................................................................................
Pennzenergy 700 12
................................................................................
Nuevo Energy * 800 9
................................................................................
Belco Oil & Gas 1,000 6
................................................................................
Forcenergy * 1,600 4
................................................................................
15
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Harken Energy * 1,800 $ 4
................................................................................
Chesapeake Energy 308 0
................................................................................
356
.................
Gas Utilities 0.7%
Williams Companies 2,700 84
................................................................................
Enron 1,300 74
................................................................................
Sempra Energy 1,851 47
................................................................................
Consolidated Natural Gas 800 43
................................................................................
Columbia Gas System 650 38
................................................................................
LG&E Energy 1,201 34
................................................................................
Southern Union * 997 24
................................................................................
National Fuel Gas 500 23
................................................................................
WICOR 800 17
................................................................................
Western Gas Resources 2,700 16
................................................................................
Laclede Gas 500 13
................................................................................
MCN 400 8
................................................................................
421
.................
International Oil 2.6%
Exxon 11,500 841
................................................................................
Mobil 3,700 322
................................................................................
Chevron 3,000 249
................................................................................
Texaco 2,300 122
................................................................................
Unocal 1,200 35
................................................................................
Oryx Energy * 1,300 17
................................................................................
1,586
.................
Oil Refining Distribution 0.8%
Amoco 3,700 218
................................................................................
USX-Marathon 2,000 60
................................................................................
Coastal 1,200 42
................................................................................
Sunoco 1,000 36
................................................................................
Tosco 1,300 34
................................................................................
Amerada Hess 600 30
................................................................................
Murphy Oil 500 21
................................................................................
Ashland 400 19
................................................................................
Aquila Gas Pipeline 1,700 15
................................................................................
Pennzoil 700 10
................................................................................
485
.................
16
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Oil Service 0.6%
Schlumberger 2,472 $ 114
................................................................................
Halliburton 2,400 71
................................................................................
Baker Hughes 2,000 35
................................................................................
Diamond Offshore Drilling 1,300 31
................................................................................
Oceaneering International * 1,700 25
................................................................................
Santa Fe International 1,500 22
................................................................................
Teppco Partners 900 22
................................................................................
ENSCO International 1,100 12
................................................................................
Weatherford International * 500 10
................................................................................
Tidewater 400 9
................................................................................
Key Energy * 1,700 8
................................................................................
Varco International * 500 4
................................................................................
Superior Energy * 600 2
................................................................................
365
.................
Total Energy 3,216
.................
FINANCIAL 15.9%
Bank and Trust 6.7%
BankAmerica 7,929 477
................................................................................
Wells Fargo 7,800 312
................................................................................
Chase Manhattan 4,100 279
................................................................................
Bank One 5,436 278
................................................................................
First Union 4,548 277
................................................................................
Bank of New York 3,600 145
................................................................................
U.S. Bancorp 3,800 135
................................................................................
Fleet Financial Group 3,000 134
................................................................................
National City 1,720 125
................................................................................
Fifth Third Bancorp 1,451 104
................................................................................
J. P. Morgan 900 95
................................................................................
PNC Bank 1,700 92
................................................................................
Mellon Bank 1,300 89
................................................................................
Wachovia 1,000 87
................................................................................
SunTrust 1,100 84
................................................................................
Firstar 900 84
................................................................................
KeyCorp 2,400 77
................................................................................
BB&T 1,900 77
................................................................................
17
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Comerica 1,050 $ 72
................................................................................
BankBoston 1,700 66
................................................................................
State Street 900 63
................................................................................
Northern Trust 700 61
................................................................................
Crestar Financial 800 58
................................................................................
Regions Financial 1,400 56
................................................................................
Mercantile Bancorporation 1,200 55
................................................................................
Summit Bancorp 1,200 52
................................................................................
Huntington Bancshares 1,500 45
................................................................................
Bankers Trust New York 500 43
................................................................................
Synovus Financial 1,700 41
................................................................................
First American 900 40
................................................................................
SouthTrust 1,000 37
................................................................................
Republic New York 800 36
................................................................................
Marshall & Ilsley 600 35
................................................................................
CCB Financial 600 34
................................................................................
Union Planters 600 27
................................................................................
Charter One Financial 930 26
................................................................................
First Virginia Banks 500 23
................................................................................
Imperial Bancorp * 1,400 23
................................................................................
National City Bancshares * 620 23
................................................................................
UMB Financial 500 23
................................................................................
Old National Bancorp 400 22
................................................................................
WestAmerica 600 22
................................................................................
Cullen/Frost Bankers 400 22
................................................................................
National Commerce Bancorporation 1,100 20
................................................................................
One Valley Bancorp 600 20
................................................................................
BOK Financial * 412 19
................................................................................
Reliance Bancshares * 1,800 18
................................................................................
Wesbanco 600 18
................................................................................
Silicon Valley Bancshares * 900 15
................................................................................
Omega Financial 500 15
................................................................................
National City Bancorporation * 500 13
................................................................................
Community Bankshares of Indiana 200 3
................................................................................
4,097
.................
Life Insurance 1.0%
American General 1,000 78
................................................................................
CIGNA 1,000 77
................................................................................
18
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Sunamerica 900 $ 73
................................................................................
Aetna 900 71
................................................................................
Jefferson Pilot 700 52
................................................................................
Conseco 1,600 49
................................................................................
Lincoln National 500 41
................................................................................
ReliaStar Financial 800 37
................................................................................
Transamerica 300 35
................................................................................
Torchmark 900 32
................................................................................
American National Insurance 300 25
................................................................................
American Annuity Group 700 16
................................................................................
Presidential Life 400 8
................................................................................
Guarantee Life 300 5
................................................................................
InterContinental Life * 200 4
................................................................................
603
.................
Miscellaneous Finance 3.3%
Citigroup 10,450 517
................................................................................
American Express 2,100 215
................................................................................
Morgan Stanley Dean Witter 2,900 206
................................................................................
Associates First Capital (Class A) 3,342 142
................................................................................
Charles Schwab 1,950 110
................................................................................
Merrill Lynch 1,600 107
................................................................................
MBNA 3,850 96
................................................................................
Household International 2,413 96
................................................................................
Providian Financial 950 71
................................................................................
Equitable Companies 1,200 69
................................................................................
Franklin Resources 1,500 48
................................................................................
Capital One Financial 400 46
................................................................................
SLM Holding 900 43
................................................................................
Paine Webber 1,100 42
................................................................................
Lehman Brothers 900 40
................................................................................
The CIT Group (Class A) 1,200 38
................................................................................
Bear Stearns 900 34
................................................................................
Alliance Capital 1,300 33
................................................................................
FINOVA Group 500 27
................................................................................
Eaton Vance 800 17
................................................................................
Pioneer Group 800 16
................................................................................
Waddell & Reed Financial (Class A) 434 10
................................................................................
B & L Financial 700 8
................................................................................
19
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Waddell & Reed Financial (Class B) * 146 $ 3
..............................................................................
FIRSTPLUS Financial * 700 2
..............................................................................
ADVANTA 55 1
..............................................................................
2,037
...........
Mortgage Financing 1.0%
Fannie Mae 4,500 333
..............................................................................
Freddie Mac 3,400 219
..............................................................................
Countrywide Credit 800 40
..............................................................................
Fund American Enterprises 200 28
..............................................................................
AMRESCO * 300 3
..............................................................................
623
...........
Other Insurance 3.3%
Berkshire Hathaway (Class A) * 7 490
..............................................................................
American International Group 4,750 459
..............................................................................
Allstate 4,100 158
..............................................................................
Hartford Financial Services Group 1,300 71
..............................................................................
Loews 700 69
..............................................................................
Progressive 400 68
..............................................................................
AFLAC 1,500 66
..............................................................................
Aon 1,000 56
..............................................................................
St. Paul Companies 1,500 52
..............................................................................
Chubb 800 52
..............................................................................
CNA Financial * 1,200 48
..............................................................................
MBIA 700 46
..............................................................................
SAFECO 1,000 43
..............................................................................
AMBAC 700 42
..............................................................................
Cincinnati Financial 1,100 40
..............................................................................
MGIC Investment 900 36
..............................................................................
UNUM 600 35
..............................................................................
Medical Assurance * 880 29
..............................................................................
Unitrin 400 29
..............................................................................
Berkshire Hathaway (Class B) * 12 28
..............................................................................
Horace Mann Educators 900 26
..............................................................................
Travelers Property Casualty (Class A) 800 25
..............................................................................
Professionals Group * 550 17
..............................................................................
Medallion Financial 1,000 14
..............................................................................
Symons International Group * 1,000 7
..............................................................................
Acceptance Insurance * 300 6
..............................................................................
20
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Baldwin & Lyons (Class B) 200 $ 5
..............................................................................
2,017
..............
Thrift Institutions 0.6%
Washington Mutual 3,226 123
..............................................................................
Golden West Financial 400 37
..............................................................................
Dime Bancorp 1,300 34
..............................................................................
Astoria Financial 575 27
..............................................................................
Washington Federal 900 24
..............................................................................
Sovereign Bancorp 1,620 23
..............................................................................
FSF Financial 1,500 22
..............................................................................
Staten Island Bancorp 1,000 20
..............................................................................
ISB Financial 800 18
..............................................................................
Abington Bancorp 1,000 14
..............................................................................
Harris Financial 1,000 13
..............................................................................
355
..............
Total Financial 9,732
..............
HEALTH CARE 10.9%
Drugs 8.9%
Merck 5,600 827
..............................................................................
Pfizer 5,900 740
..............................................................................
Bristol-Myers Squibb 4,600 616
..............................................................................
Johnson & Johnson 6,400 537
..............................................................................
Eli Lilly 5,200 462
..............................................................................
Schering-Plough 6,700 370
..............................................................................
American Home Products 6,200 349
..............................................................................
Abbott Laboratories 7,100 348
..............................................................................
Warner-Lambert 4,000 301
..............................................................................
Monsanto 3,100 147
..............................................................................
Amgen * 1,300 136
..............................................................................
Cardinal Health 1,100 83
..............................................................................
Genentech * 800 64
..............................................................................
McKesson 600 47
..............................................................................
Forest Laboratories * 800 43
..............................................................................
MedImmune * 400 40
..............................................................................
Watson Pharmaceuticals * 600 38
..............................................................................
Biogen * 400 33
..............................................................................
21
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Mallinkrodt 1,000 $ 31
..............................................................................
Techne * 1,200 25
..............................................................................
Allou Health & Beauty * 2,300 25
..............................................................................
ICOS * 800 24
..............................................................................
Aviron * 900 23
..............................................................................
Serologicals * 750 22
..............................................................................
Patterson Dental * 500 22
..............................................................................
Transkaryotic Therapies * 800 20
..............................................................................
AmeriSource Health * 300 19
..............................................................................
Rexall Sundown * 1,200 17
..............................................................................
Nexstar Pharmaceuticals * 1,600 15
..............................................................................
Immune Response * 1,300 14
..............................................................................
Nutramax Products * 1,000 5
..............................................................................
Creative Biomolecules * 1,300 5
..............................................................................
5,448
..............
Health-Care (non-drug) 1.2%
Medtronic 2,400 178
..............................................................................
Guidant 800 88
..............................................................................
Baxter International 1,300 84
..............................................................................
Boston Scientific * 2,400 64
..............................................................................
Becton, Dickinson 1,300 55
..............................................................................
Allegiance 1,000 47
..............................................................................
Biomet 1,000 40
..............................................................................
C. R. Bard 700 35
..............................................................................
Arterial Vascular Engineering * 600 31
..............................................................................
Steris * 900 26
..............................................................................
Affymetrix * 800 19
..............................................................................
Circon Corp * 1,200 18
..............................................................................
ThermoSpectra Corp * 1,300 15
..............................................................................
Arrow International 400 13
..............................................................................
Nitinol Medical Technologies * 700 3
..............................................................................
Cardima * 800 2
..............................................................................
718
..............
HMO/Hospital Management 0.8%
Columbia/HCA Healthcare 3,200 79
..............................................................................
IMS Health 800 60
..............................................................................
Wellpoint Health Networks * 600 52
..............................................................................
United HealthCare 1,100 47
..............................................................................
22
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- -----------------------------------------------------------------------------
Shares/Par Value
- -----------------------------------------------------------------------------
In thousands
Tenet Healthcare * 1,800 $ 47
.............................................................................
HealthSouth * 2,438 38
.............................................................................
Lincare * 800 32
.............................................................................
Total Renal Care Holdings * 1,033 31
.............................................................................
Universal Health Services * 500 26
.............................................................................
PacifiCare Health Systems (Class B) * 300 24
.............................................................................
Curative Technologies * 500 16
.............................................................................
Apria Healthcare * 1,400 13
.............................................................................
PhyCor * 1,200 8
.............................................................................
Ventas 400 5
.............................................................................
Vencor * 400 2
.............................................................................
American HomePatient * 500 1
.............................................................................
481
..............
Total Health Care 6,647
..............
PROCESS INDUSTRIES 2.2%
Chemicals 1.5%
DuPont 5,300 281
.............................................................................
Dow Chemical 1,100 100
.............................................................................
Air Products and Chemicals 1,500 60
.............................................................................
PPG Industries 900 53
.............................................................................
Union Carbide 1,100 47
.............................................................................
Praxair 1,200 42
.............................................................................
Occidental Petroleum 2,200 37
.............................................................................
Sybron International * 1,300 35
.............................................................................
Great Lakes Chemical 800 32
.............................................................................
Hercules 1,100 30
.............................................................................
Crompton & Knowles 1,300 27
.............................................................................
Rohm & Haas 800 24
.............................................................................
RPM 1,500 24
.............................................................................
International Specialty Products * 1,700 23
.............................................................................
Cabot 800 22
.............................................................................
Ivex Packaging * 800 19
.............................................................................
A. Schulman 800 18
.............................................................................
Airgas * 1,800 16
.............................................................................
Millennium Chemicals 800 16
.............................................................................
NL Industries 900 13
.............................................................................
23
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Terra Nitrogen 900 $ 9
.............................................................................
TETRA Technologies * 800 9
.............................................................................
Hawkins Chemical 600 6
.............................................................................
943
..............
Forest Products 0.1%
Playtex Products * 1,300 21
.............................................................................
Louisiana Pacific 1,100 20
.............................................................................
Universal Forest Products 300 6
.............................................................................
FiberMark * 400 6
.............................................................................
53
..............
Paper 0.6%
International Paper 1,600 72
.............................................................................
Weyerhaeuser 1,400 71
.............................................................................
Fort James 1,300 52
.............................................................................
Union Camp 700 47
.............................................................................
Willamette Industries 900 30
.............................................................................
Jefferson Smurfit * 1,590 25
.............................................................................
Westvaco 900 24
.............................................................................
Chesapeake 500 19
.............................................................................
Boise Cascade 500 16
.............................................................................
Schweitzer-Mauduit 800 12
.............................................................................
Badger Paper Mills * 500 4
.............................................................................
372
..............
Total Process Industries 1,368
..............
TECHNOLOGY 19.5%
Aerospace 0.6%
Boeing 4,800 157
.............................................................................
Lockheed Martin 900 76
.............................................................................
Gulfstream Aerospace * 700 37
.............................................................................
Sundstrand 600 31
.............................................................................
General Dynamics 500 29
.............................................................................
United Industrial 1,300 13
.............................................................................
343
..............
Analytical Equipment 0.8%
Emerson Electric 2,300 139
.............................................................................
Raytheon (Class B) 1,800 96
.............................................................................
24
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Honeywell 800 $ 60
..............................................................................
Perkin-Elmer 400 39
..............................................................................
KLA-Tencor * 800 35
..............................................................................
Northrop Gruman 400 29
..............................................................................
Thermo Electron * 1,200 20
..............................................................................
Cognex * 800 16
..............................................................................
Stimsonite * 2,200 15
..............................................................................
Meade Instruments * 600 8
..............................................................................
Bioanalytical systems * 1,400 6
..............................................................................
Robotic Vision Systems * 400 1
..............................................................................
464
..............
Business Machines 4.0%
IBM 4,400 813
..............................................................................
Dell Computer * 5,700 417
..............................................................................
Hewlett-Packard 4,800 328
..............................................................................
COMPAQ Computer 7,678 322
..............................................................................
Xerox 1,500 177
..............................................................................
Sun Microsystems * 1,700 145
..............................................................................
Pitney Bowes 1,500 99
..............................................................................
Gateway 2000 * 900 46
..............................................................................
NCR * 1,100 46
..............................................................................
Apple Computer * 800 33
..............................................................................
Silicon Graphics * 1,700 22
..............................................................................
Sequent Computer Systems * 1,400 17
..............................................................................
Ikon Office Solutions 1,300 11
..............................................................................
2,476
..............
Communication Equipment 1.7%
Lucent Technologies 5,900 649
..............................................................................
Motorola 3,000 183
..............................................................................
Tellabs * 1,100 75
..............................................................................
General Instrument * 1,100 37
..............................................................................
Plantronics * 400 34
..............................................................................
Sensormatic Electronics * 3,400 24
..............................................................................
Aspect Telecommunications * 1,300 23
..............................................................................
Brite Voice Systems * 2,300 19
..............................................................................
CMC Industries * 1,400 8
..............................................................................
Napco Security Systems * 1,800 8
..............................................................................
PairGain Technologies * 700 5
..............................................................................
25
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
P-COM * 700 $ 3
................................................................................
1,068
..............
Computer Communications 1.5%
Cisco Systems * 7,100 659
................................................................................
3Com * 1,800 81
................................................................................
Ascend Communications * 1,100 72
................................................................................
Intermedia Communications * 1,400 24
................................................................................
Mylex * 2,000 24
................................................................................
Adaptec * 1,300 23
................................................................................
Emulux * 400 16
................................................................................
Digital Link * 600 3
................................................................................
902
..............
Computer Peripherals 0.7%
EMC * 2,300 195
................................................................................
Seagate Technology * 1,200 36
................................................................................
Symbol Technologies 500 32
................................................................................
Lexmark International Group (Class A) * 300 30
................................................................................
Advanced Digital Info * 1,700 27
................................................................................
Bell & Howell * 600 23
................................................................................
Western Digital * 1,400 21
................................................................................
Rainbow Technologies * 1,000 19
................................................................................
Security Dynamics Technologies * 600 14
................................................................................
Zebra Technologies (Class A) * 400 12
................................................................................
C-Cube Microsystems * 300 8
................................................................................
417
..............
Computer Services 2.4%
America Online 2,300 354
................................................................................
Automatic Data Processing 1,600 128
................................................................................
Electronic Data Systems 2,400 121
................................................................................
Yahoo! * 500 118
................................................................................
First Data 2,200 70
................................................................................
HBO 2,300 66
................................................................................
Computer Sciences 1,000 64
................................................................................
At Home * 800 59
................................................................................
Unisys * 1,700 59
................................................................................
EBAY * 200 48
................................................................................
Galileo International 1,000 44
................................................................................
Inktomi * 300 39
................................................................................
26
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
SunGard Data Systems * 900 $ 36
................................................................................
Affiliated Computer Services (Class A) * 700 32
................................................................................
FIserv * 600 31
................................................................................
Keane * 700 28
................................................................................
Network Solutions (Class A) * 200 26
................................................................................
Lycos * 400 22
................................................................................
Cerner * 800 21
................................................................................
GTECH * 700 18
................................................................................
CIBER * 600 17
................................................................................
Mentor Graphics * 1,900 16
................................................................................
Sykes Enterprises * 500 15
................................................................................
Telescan * 1,700 15
................................................................................
THINK New Ideas * 600 6
................................................................................
H.T.E. * 1,000 5
................................................................................
Data Dimensions * 300 3
................................................................................
1,461
..............
Computer Software 4.3%
Microsoft * 11,300 1,565
................................................................................
Oracle * 4,600 199
................................................................................
Computer Associates 2,600 111
................................................................................
Compuware * 1,000 78
................................................................................
Network Associates * 1,000 66
................................................................................
BMC Software * 1,200 54
................................................................................
Electronic Arts * 800 45
................................................................................
Parametric Technology * 2,700 44
................................................................................
Intuit * 600 43
................................................................................
Sterling Commerce * 900 41
................................................................................
Cadence Design Systems * 1,300 39
................................................................................
Synopsys * 700 38
................................................................................
PeopleSoft * 1,700 32
................................................................................
Ardent Software * 1,300 30
................................................................................
Novell * 1,500 27
................................................................................
Legato Systems * 400 26
................................................................................
J. D. Edwards * 900 26
................................................................................
Integrated Systems * 1,600 24
................................................................................
Great Plains Software * 400 19
................................................................................
PLATINUM technology * 1,000 19
................................................................................
Phoenix International * 1,200 18
................................................................................
27
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Concord Communications * 300 $ 17
..............................................................................
CFI Proservices * 1,400 16
..............................................................................
Midway Games * 1,439 16
..............................................................................
LHS Group * 300 15
..............................................................................
Visio * 400 15
..............................................................................
The Learning Company * 500 13
..............................................................................
Hyperion Solutions * 570 10
..............................................................................
Orcad * 1,100 9
..............................................................................
Bea Systems * 700 9
..............................................................................
Ansoft * 400 2
..............................................................................
2,666
............
Electronic Manufacturing Equipment 0.2%
Applied Materials * 1,900 81
..............................................................................
Varian Associates 600 23
..............................................................................
Novellus Systems * 400 20
..............................................................................
Quipp * 600 11
..............................................................................
135
............
Electronics 3.3%
Intel 7,500 889
..............................................................................
GM (Class H) 700 28
..............................................................................
Texas Instruments 1,800 154
..............................................................................
Qwest Communications International * 1,800 90
..............................................................................
Solectron * 800 74
..............................................................................
Level 3 Communications * 1,700 73
..............................................................................
Micron Technology * 1,300 66
..............................................................................
Rockwell International 1,200 58
..............................................................................
Xilinx * 800 52
..............................................................................
AMP 959 50
..............................................................................
Analog Devices * 1,500 47
..............................................................................
Maxim Integrated Products * 1,000 44
..............................................................................
Linear Technology 400 36
..............................................................................
Arrow Electronics * 1,300 35
..............................................................................
LSI Logic * 1,900 30
..............................................................................
Jabil Circuit * 400 30
..............................................................................
Molex 700 27
..............................................................................
DuPont Photomasks * 600 25
..............................................................................
Thomas & Betts 500 22
..............................................................................
Amphenol * 700 21
..............................................................................
28
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- ------------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Kimball International 1,100 $ 21
..............................................................................
Vishay Intertechnology * 1,430 21
..............................................................................
Supertex * 1,800 18
..............................................................................
Andrew * 1,000 16
..............................................................................
KEMET * 1,400 16
..............................................................................
Level One * 450 16
..............................................................................
SMART Modular Technologies * 500 14
..............................................................................
International Rectifier * 1,000 10
..............................................................................
Micro Linear * 2,000 8
..............................................................................
Integrated Silicon Solution * 900 3
..............................................................................
1,994
..............
Total Technology 11,926
..............
UTILITIES 9.4%
Electric Utilities 2.6%
Duke Energy 1,900 122
..............................................................................
Southern Company 3,200 93
..............................................................................
FPL Group 1,100 68
..............................................................................
Consolidated Edison 1,200 63
..............................................................................
PG&E 2,000 63
..............................................................................
Texas Utilities 1,300 61
..............................................................................
Public Service Enterprise 1,500 60
..............................................................................
AES * 1,200 57
..............................................................................
American Electric Power 1,200 57
..............................................................................
Dominion Resources 1,200 56
..............................................................................
Edison International 1,900 53
..............................................................................
Houston Industries 1,600 51
..............................................................................
Unicom 1,100 42
..............................................................................
Carolina Power & Light 900 42
..............................................................................
Central and South West 1,500 41
..............................................................................
Entergy 1,300 41
..............................................................................
CMS Energy 800 39
..............................................................................
PacifiCorp 1,800 38
..............................................................................
NIPSCO 1,200 37
..............................................................................
PP&L Resources 1,300 36
..............................................................................
Northern States Power 1,300 36
..............................................................................
FirstEnergy 1,100 36
..............................................................................
29
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
DTE Energy 800 $ 34
................................................................................
BGE 1,100 34
................................................................................
PECO Energy 800 33
................................................................................
IPALCO Enterprises 500 28
................................................................................
Niagara Mohawk * 1,700 27
................................................................................
DQE 600 26
................................................................................
Illinova 1,000 25
................................................................................
Rochester Gas & Electric 800 25
................................................................................
WPS Resources 700 25
................................................................................
Cilcorp 400 25
................................................................................
CalEnergy * 700 24
................................................................................
MidAmerican Energy Holdings 900 24
................................................................................
Western Resources 700 23
................................................................................
Northeast Utilities * 1,400 22
................................................................................
Unisource Energy * 1,600 22
................................................................................
UNITIL Corp 700 18
................................................................................
1,607
................
Telephone and Telegraph 6.7%
AT&T 8,277 623
................................................................................
MCI WorldCom * 8,560 614
................................................................................
SBC Communications 9,000 483
................................................................................
BellSouth 8,800 439
................................................................................
Bell Atlantic 6,800 360
................................................................................
Ameritech 4,800 304
................................................................................
GTE 4,600 299
................................................................................
AirTouch Communications * 2,500 180
................................................................................
U S West 2,638 171
................................................................................
Sprint 1,900 160
................................................................................
ALLTEL 1,600 96
................................................................................
Sprint * 2,300 53
................................................................................
Frontier 1,300 44
................................................................................
Century Telephone Enterprises 650 44
................................................................................
Price Communications * 3,124 40
................................................................................
Nextel Communications * 1,400 33
................................................................................
Telephone and Data Systems 700 32
................................................................................
U. S. Cellular * 700 27
................................................................................
Winstar Communications * 600 23
................................................................................
Commonwealth Telephone Enterprises * 700 23
................................................................................
30
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Citizens Utilities * 2,740 $ 22
................................................................................
Tel-Save Holdings * 1,200 20
................................................................................
Teleglobe Inc 442 16
................................................................................
MetroCal * 2,400 11
................................................................................
General Communication * 1,500 6
................................................................................
American Communications 700 5
................................................................................
Omnipoint * 300 3
................................................................................
USCI * 2,300 0
................................................................................
4,131
................
Water Utilities 0.1%
American Water Works 800 27
................................................................................
Aquarion Company 400 16
................................................................................
43
................
Total Utilities 5,781
................
MISCELLANEOUS 0.1%
Miscellaneous 0.1%
Aurora Foods * 1,600 32
................................................................................
Peekskill Financial 1,000 16
................................................................................
Bristol Hotels * 2,000 12
................................................................................
Bayard Drilling * 682 3
................................................................................
Vornado Operating Company * 35 0
................................................................................
Total Miscellaneous 63
................
Total Common Stocks (Cost $52,377) 58,543
................
Short-Term Investments 4.4%
U.S. Government Obligations 0.2%
U.S. Treasury Bills, 4.36 - 4.92%, 1/21 - 7/22/99 $ 115,000 114
................................................................................
114
................
Money Market Fund 4.2%
Reserve Investment Fund, 5.42% # 2,559,801 2,560
................................................................................
Total Short-Term Investments (Cost $2,674) 2,674
................
31
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- --------------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
100.0% of Net Assets (Cost $55,051) $ 61,217
Futures Contracts
In thousands
<CAPTION>
Contract Unrealized
Expiration Value Gain (Loss)
.......... ........ ...........
<S> <C> <C> <C>
Long, 5 Standard & Poor's 500 Stock Index
contracts, $70,000 of U.S. Treasury Bills
pledged as initial margin 3/99 $ 1,557 $ 66
Long, 2 Midcap 400 Stock Index contracts
$20,000 of U.S. Treasury Bills pledged as
initial margin 3/99 392 19
Long, 2 Russell 2000 Stock Index contracts
$25,000 of U.S. Treasury Bills pledged as
initial margin 3/99 425 27
Net payments (receipts) of variation
margin to date (95)
...........
Variation margin receivable
(payable) on open futures contracts 17
Other Assets Less Liabilities (24)
...........
NET ASSETS $ 61,210
-----------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (33)
Accumulated net realized gain/loss - net of distributions 110
Net unrealized gain (loss) 6,278
Paid-in-capital applicable to 5,022,868 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares of the
Corporation authorized 54,855
...........
NET ASSETS $ 61,210
-----------
NET ASSET VALUE PER SHARE $ 12.19
-----------
</TABLE>
# Seven-day yield
* Non-income producing
REIT Real Estate Investment Trust
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
- -----------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
1/30/98
Through
12/31/98
Investment Income
Income
Dividend $ 391
Interest 95
............
Total income 486
............
Expenses
Investment management and administrative 111
............
Net investment income 375
............
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 70
Futures 40
............
Net realized gain (loss) 110
............
Change in net unrealized gain or loss
Securities 6,166
Futures 112
............
Change in net unrealized gain or loss 6,278
............
Net realized and unrealized gain (loss) 6,388
............
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 6,763
------------
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
- ----------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
1/30/98
Through
12/31/98
Increase (Decrease) in Net Assets
Operations
Net investment income $ 375
Net realized gain (loss) 110
Change in net unrealized gain or loss 6,278
.........
Increase (decrease) in net assets from operations 6,763
.........
Distributions to shareholders
Net investment income (408)
.........
Capital share transactions *
Shares sold 62,656
Distributions reinvested 395
Shares redeemed (8,207)
Redemption fees received 11
.........
Increase (decrease) in net assets from capital
share transactions 54,855
.........
Net Assets
Increase (decrease) during period 61,210
Beginning of period --
.........
End of period $ 61,210
---------
* Share information
Shares sold 5,742
Distributions reinvested 34
Shares redeemed (753)
.........
Increase (decrease) in shares outstanding 5,023
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
December 31, 1998
- -----------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Equity Market Index Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The Total Equity Market Index Fund
(the fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on January
30, 1998.
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.
Short-term debt securities are valued at amortized cost which, when combined
with accrued interest, approximates fair value.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation. Financial futures contracts are
valued at closing settlement prices.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
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
35
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. Payments ("variation margin") made or received
by the fund to settle the daily fluctuations in the value of futures contracts
are recorded as unrealized gains or losses until the contracts are closed.
Unrealized gains and losses on futures contracts are included in change in net
unrealized gain or loss in the accompanying financial statements.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Futures Contracts At December 31, 1998, the fund was a party to futures
contracts, which provide for the future sale by one party and purchase by
another of a specified amount of a specific financial instrument at an agreed
upon price, date, time, and place. Risks arise from possible illiquidity of the
futures market and from movements in security values.
Other Purchases and sales of portfolio securities, other than short-term and
U.S. government securities, aggregated $52,807,000 and $512,000, respectively,
for the period ended December 31, 1998.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
qualify as a regulated investment company and distribute all of its taxable
income.
At December 31, 1998, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled $55,051,000.
Net unrealized gain aggregated $6,166,000 at period-end, of which $8,768,000
related to appreciated investments and $2,602,000 to depreciated investments.
36
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
NOTE 4 - RELATED PARTY TRANSACTIONS
The investment management and administrative agreement between the fund and T.
Rowe Price Associates, Inc. (the manager) provides for an all-inclusive annual
fee. The fee, computed daily and paid monthly, is equal to 0.40% of the fund's
average daily net assets. Pursuant to the agreement, investment management,
shareholder servicing, transfer agency, accounting, and custody services are
provided to the fund, and interest, taxes, brokerage commissions, and
extraordinary expenses are paid directly by the fund.
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 period ended December 31, 1998, totaled
$92,000 and are reflected as interest income in the accompanying Statement of
Operations.
37
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
- ---------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors of T. Rowe Price Equity Market Index Funds, Inc. and
Shareholders of T. Rowe Price Total Equity Market Index Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
T. Rowe Price Total Equity Market Index Fund (one of the portfolios comprising
T. Rowe Price Equity Market Index Funds, Inc., hereafter referred to as the
"Fund") at December 31, 1998, and the results of its operations, the changes in
its net assets and the financial highlights for the fiscal period presented
through December 31, 1998, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at December 31, 1998, by correspondence with
custodians, provides a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 21, 1999
38
<PAGE>
T. Rowe Price Total Equity Market Index Fund
- --------------------------------------------------------------------------------
- -----------------------------------------------------------
Tax Information (Unaudited) for the Tax Year Ended 12/31/98
- --------------------------------------------------------------------------------
We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
For corporate shareholders, $362,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
39
<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 of the T. Rowe Price Equity Market
Index 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
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. F23-050 12/31/98
