<PAGE>
- --------------------------------------------------------------------------------
Annual Report - Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price
Equity
Index 500
Fund
-------------------
December 31, 1998
-------------------
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
- --------------------
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year
Ended
12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 26.38 $ 20.34 $ 17.21 $ 13.09 $ 13.48
....................................................................
Investment activities
Net investment income 0.33* 0.35* 0.38* 0.39* 0.36*
Net realized and
unrealized gain (loss) 7.10 6.28 3.47 4.43 (0.23)
....................................................................
Total from
investment activities 7.43 6.63 3.85 4.82 0.13
....................................................................
Distributions
Net investment income (0.34) (0.34) (0.38) (0.40) (0.36)
Net realized gain (0.09) (0.25) (0.34) (0.30) (0.09)
In excess of net
realized gain - - - - (0.07)
....................................................................
Total distributions (0.43) (0.59) (0.72) (0.70) (0.52)
....................................................................
NET ASSET VALUE
End of period $ 33.38 $ 26.38 $ 20.34 $ 17.21 $ 13.09
--------------------------------------------------------------------
Ratios/Supplemental Data
Total return+ 28.31%* 32.87%* 22.65%* 37.16%* 1.01%*
....................................................................
Ratio of expenses to
average net assets 0.40%* 0.40%* 0.40%* 0.45%* 0.45%*
....................................................................
Ratio of net investment
income to average
net assets 1.17%* 1.49%* 2.05%* 2.54%* 2.73%*
....................................................................
Portfolio turnover rate 4.7% 0.7% 1.3% 1.3% 1.3%
....................................................................
Net assets, end of period
(in millions) $ 3,347 $ 1,908 $ 808 $ 457 $ 270
....................................................................
</TABLE>
+ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions and payment of no redemption or account fees.
* Excludes expenses in excess of a 0.45% voluntary expense limitation in
effect through 12/31/95 and a 0.40% voluntary expense limitation in effect
through 12/31/99.
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
December 31, 1998
- -----------------------
Statement of Net Assets Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Common Stocks 99.3%
BASIC MATERIALS 0.5%
Aluminum 0.2%
Alcoa 60,637 $ 4,521
................................................................................
Alcan Aluminum 76,896 2,081
................................................................................
Reynolds Metals 22,959 1,210
................................................................................
7,812
............
Iron and Steel 0.1%
Nucor 29,198 1,263
................................................................................
USX-U.S. Steel 27,438 631
................................................................................
Worthington Industries 32,952 413
................................................................................
Bethlehem Steel * 41,247 345
................................................................................
2,652
............
Miscellaneous Mining, Metals 0.0%
Phelps Dodge 19,230 978
................................................................................
Inco 56,993 602
................................................................................
Cyprus Amax Minerals 27,081 271
................................................................................
ASARCO 11,443 172
................................................................................
2,023
............
Precious Metals 0.2%
Barrick Gold 127,194 2,480
................................................................................
Newmont Mining 54,527 985
................................................................................
Placer Dome 80,175 922
................................................................................
Homestake Mining 79,390 730
................................................................................
Freeport McMoRan Copper & Gold (Class B) 55,005 574
................................................................................
Battle Mountain Gold 65,910 272
................................................................................
5,963
............
Total Basic Materials 18,450
............
BUSINESS SERVICES AND
TRANSPORTATION 2.2%
Advertising 0.2%
Interpublic Group 46,352 3,697
................................................................................
Omnicom 54,904 3,184
................................................................................
6,881
............
3
<PAGE>
T. Rowe Price Equity Index 500 Fund
- -------------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------------
In thousands
Air Transport 0.4%
FDX * 48,133 $ 4,284
...............................................................................
AMR * 61,367 3,644
...............................................................................
Delta 48,545 2,524
...............................................................................
Southwest Airlines 110,957 2,489
...............................................................................
USAir * 32,517 1,691
...............................................................................
14,632
............
Engineering Services 0.0%
EG&G 15,537 432
...............................................................................
432
............
Pollution Control 0.4%
Waste Management 191,917 8,948
...............................................................................
Browning-Ferris 57,897 1,647
...............................................................................
Laidlaw 107,435 1,081
...............................................................................
11,676
............
Railroads 0.5%
Burlington Northern Santa Fe 156,984 5,298
...............................................................................
Norfolk Southern 124,690 3,951
...............................................................................
Union Pacific 81,829 3,688
...............................................................................
CSX 71,224 2,956
...............................................................................
15,893
............
Services 0.7%
Cendant * 284,600 5,425
...............................................................................
Marsh & McLennan 86,445 5,052
...............................................................................
Service Corp. International 85,524 3,255
...............................................................................
Paychex 55,082 2,835
...............................................................................
Dun & Bradstreet 55,263 1,744
...............................................................................
Ceridian * 24,669 1,722
...............................................................................
Equifax 48,680 1,664
...............................................................................
H&R Block 33,369 1,502
...............................................................................
Deluxe Corp. 25,584 936
...............................................................................
Ryder System 25,430 661
...............................................................................
24,796
.............
Total Business Services and Transportation 74,310
.............
CAPITAL EQUIPMENT 6.0%
Industrial Manufacturing 5.5%
GE 1,090,346 111,283
...............................................................................
4
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Tyco International 213,241 $ 16,086
................................................................................
3M 133,177 9,472
................................................................................
United Technologies 75,281 8,187
................................................................................
AlliedSignal 183,574 8,135
................................................................................
Illinois Tool Works 83,819 4,861
................................................................................
Textron 54,331 4,126
................................................................................
Corning 77,733 3,498
................................................................................
Dover 74,472 2,728
................................................................................
Danaher 43,477 2,361
................................................................................
TRW 39,457 2,217
................................................................................
Cooper Industries 37,062 1,767
................................................................................
ITT Industries 39,889 1,586
................................................................................
Allegheny Teledyne 66,644 1,362
................................................................................
Parker Hannifin 35,075 1,149
................................................................................
Pall 43,879 1,111
................................................................................
Stanley Works 28,534 792
................................................................................
FMC * 10,940 613
................................................................................
Cummins Engine 15,024 533
................................................................................
National Service Industries 12,871 489
................................................................................
Briggs & Stratton 8,227 410
................................................................................
Timken 21,352 403
................................................................................
Aeroquip-Vickers 8,615 258
................................................................................
Milacron 10,864 209
................................................................................
183,636
..............
Producers Goods 0.5%
Caterpillar 118,849 5,467
................................................................................
Deere 79,216 2,624
................................................................................
Ingersoll-Rand 54,411 2,554
................................................................................
Genuine Parts 60,240 2,014
................................................................................
Eaton 24,680 1,745
................................................................................
W. W. Grainger 32,101 1,336
................................................................................
Crane 23,895 721
................................................................................
Case 23,284 508
................................................................................
McDermott International 18,307 452
................................................................................
Harnischfeger 12,907 132
................................................................................
17,553
..............
Total Capital Equipment 201,189
..............
5
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
- ------------------------
CONSUMER CYCLICALS 1.9%
- ------------------------
Construction 0.3%
Masco 114,082 $ 3,280
................................................................................
Sherwin-Williams 56,336 1,655
................................................................................
Fluor 26,764 1,139
................................................................................
Centex 19,323 871
................................................................................
Armstrong World 13,488 813
................................................................................
Owens Corning 17,782 630
................................................................................
Kaufman & Broad 12,092 348
................................................................................
Foster Wheeler 16,356 216
................................................................................
8,952
............
Consumer Durables 0.2%
Maytag 30,865 1,921
................................................................................
Black & Decker 31,286 1,754
................................................................................
Whirlpool 25,684 1,422
................................................................................
5,097
............
Motor Vehicles 1.3%
Ford Motor 400,355 23,496
................................................................................
GM 216,651 15,504
................................................................................
Dana 56,377 2,304
................................................................................
Johnson Controls 28,471 1,680
................................................................................
PACCAR 26,536 1,088
................................................................................
Navistar* 23,482 669
................................................................................
Fleetwood 11,682 406
................................................................................
45,147
............
Real Estate 0.0%
Pulte 14,160 394
................................................................................
394
............
Tire & Rubber 0.1%
Goodyear Tire & Rubber 51,999 2,623
................................................................................
Cooper Tire 23,655 483
................................................................................
3,106
............
Total Consumer Cyclicals 62,696
............
- --------------------------
CONSUMER NONDURABLES 10.7%
- --------------------------
Agriculture, Food 2.2%
Unilever N.V. ADR 211,298 17,524
................................................................................
Sara Lee 305,284 8,605
................................................................................
6
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Campbell 149,411 $ 8,218
................................................................................
Heinz 120,259 6,810
................................................................................
ConAgra 164,032 5,167
................................................................................
Bestfoods 96,300 5,128
................................................................................
Kellogg 136,698 4,665
................................................................................
General Mills 50,410 3,919
................................................................................
Wrigley 38,183 3,420
................................................................................
Archer Daniels Midland 197,475 3,394
................................................................................
RJR Nabisco 107,259 3,184
................................................................................
Hershey Foods 48,003 2,985
................................................................................
Pioneer Hi-Bred 79,256 2,140
................................................................................
75,159
............
Beverages 2.5%
Coca-Cola 817,142 54,646
................................................................................
PepsiCo 485,519 19,876
................................................................................
Coca-Cola Enterprises 131,543 4,703
................................................................................
Quaker Oats 45,208 2,690
................................................................................
81,915
............
Containers 0.3%
Tenneco 55,593 1,894
................................................................................
Owens-Illinois* 52,604 1,611
................................................................................
Sealed Air* 27,461 1,402
................................................................................
Crown Cork & Seal 40,206 1,239
................................................................................
Temple-Inland 18,538 1,100
................................................................................
Bemis 17,644 669
................................................................................
Ball 10,808 494
................................................................................
8,409
............
Cosmetics 1.3%
Procter & Gamble 439,049 40,090
................................................................................
Avon 86,230 3,816
................................................................................
Alberto Culver (Class B) 20,610 550
................................................................................
44,456
............
Leisure, Luxury 0.5%
Carnival (Class A) 198,700 9,537
................................................................................
Mattel 93,923 2,143
................................................................................
Hilton 87,614 1,676
................................................................................
Hasbro 42,159 1,523
................................................................................
Brunswick 31,185 772
................................................................................
15,651
............
7
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Liquor 0.6%
Anheuser-Busch 159,176 $ 10,446
................................................................................
Seagram 131,619 5,002
................................................................................
Fortune Brands 57,845 1,829
................................................................................
Brown-Forman (Class B) 23,227 1,758
................................................................................
Coors (Class B) 11,848 669
................................................................................
19,704
............
Photographic, Optical 0.2%
Eastman Kodak 107,259 7,723
................................................................................
Polaroid 13,067 244
................................................................................
7,967
............
Soaps, Houseware 1.5%
Gillette 368,911 17,823
................................................................................
Kimberly-Clark 180,765 9,852
................................................................................
Colgate-Palmolive 97,183 9,026
................................................................................
Clorox 34,249 4,001
................................................................................
Ralston Purina 102,393 3,315
................................................................................
Newell 53,141 2,192
................................................................................
Rubbermaid 50,086 1,574
................................................................................
International Flavors & Fragrances 34,290 1,515
................................................................................
Ecolab 41,260 1,493
................................................................................
Tupperware 19,179 315
................................................................................
NACCO Industries (Class A) 2,346 216
................................................................................
51,322
............
Textiles and Apparel 0.2%
NIKE (Class B) 94,218 3,822
................................................................................
V. F 39,268 1,840
................................................................................
Liz Claiborne 22,771 719
................................................................................
Fruit of the Loom (Class A)* 20,776 287
................................................................................
Springs Industries 6,705 278
................................................................................
Russell 12,573 255
................................................................................
Reebok* 16,392 244
................................................................................
7,445
............
Tobacco 1.4%
Philip Morris 810,246 43,348
................................................................................
UST 63,249 2,206
................................................................................
45,554
............
Total Consumer Nondurables 357,582
............
8
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CONSUMER SERVICES 10.9%
Hotels, Restaurants 0.8%
McDonald's 222,576 $ 17,055
................................................................................
Tricon Global Restaurants* 50,320 2,522
................................................................................
Marriott (Class A) 84,692 2,456
................................................................................
Wendys 43,314 945
................................................................................
Mirage Resorts* 56,370 842
................................................................................
Darden Restaurants 43,123 776
................................................................................
Harrah's Entertainment* 35,568 558
................................................................................
25,154
............
Media 2.9%
Time Warner 408,412 25,347
................................................................................
Disney 682,895 20,487
................................................................................
Tele-Communications (Class A)* 178,724 9,891
................................................................................
US WEST Media* 202,432 9,514
................................................................................
Viacom (Class B)* 117,284 8,679
................................................................................
CBS 233,065 7,633
................................................................................
Comcast (Class A Special) 120,897 7,099
................................................................................
Clear Channel Communications* 86,896 4,736
................................................................................
Tribune 39,746 2,623
................................................................................
King World Productions* 25,036 737
................................................................................
96,746
............
Publishing 0.6%
Gannett 93,252 6,015
................................................................................
McGraw-Hill 32,441 3,305
................................................................................
New York Times (Class A) 63,118 2,190
................................................................................
R.R. Donnelley 45,208 1,981
................................................................................
Times Mirror (Class A) 29,107 1,630
................................................................................
Dow Jones 31,104 1,497
................................................................................
Knight-Ridder 27,444 1,403
................................................................................
American Greetings (Class A) 24,362 1,000
................................................................................
Meredith 17,005 644
................................................................................
Jostens 12,151 318
................................................................................
Moore 27,291 300
................................................................................
20,283
............
Retail - Clothing 0.5%
The Gap 191,973 10,798
................................................................................
TJX 106,368 3,085
................................................................................
9
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
The Limited 76,541 $ 2,229
................................................................................
Nordstrom 51,219 1,780
................................................................................
17,892
............
Retail - Computer/Electronics 0.1%
Circuit City Stores 33,454 1,671
................................................................................
Tandy 33,118 1,364
................................................................................
3,035
............
Retail - Food 0.9%
Safeway* 161,835 9,862
................................................................................
Albertson's 80,946 5,155
................................................................................
Kroger* 84,969 5,141
................................................................................
American Stores 92,333 3,411
................................................................................
Sysco 111,381 3,056
................................................................................
Winn-Dixie 49,587 2,225
................................................................................
Supervalu 42,254 1,183
................................................................................
A & P 11,898 352
................................................................................
30,385
............
Retail - General Department 3.1%
Wal-Mart 746,838 60,821
................................................................................
Dayton Hudson 146,787 7,963
................................................................................
Sears 128,161 5,447
................................................................................
Costco Companies* 71,274 5,156
................................................................................
May Department Stores 74,714 4,511
................................................................................
J.C. Penney 82,950 3,888
................................................................................
Kohl's* 53,264 3,272
................................................................................
Fred Meyer* 51,650 3,112
................................................................................
Federated Department Stores* 67,909 2,958
................................................................................
Kmart* 162,252 2,485
................................................................................
Dollar General 61,709 1,458
................................................................................
Harcourt General 24,547 1,306
................................................................................
Dillards 35,774 1,015
................................................................................
Consolidated Stores* 37,557 758
................................................................................
104,150
............
Retail - Other 2.0%
Home Depot 516,622 31,611
................................................................................
Walgreen 165,671 9,702
................................................................................
CVS 129,013 7,096
................................................................................
Lowes 116,979 5,988
................................................................................
10
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Staples* 101,525 $ 4,438
................................................................................
Rite Aid 85,503 4,238
................................................................................
AutoZone* 50,897 1,676
................................................................................
Toys "R" Us* 89,947 1,518
................................................................................
Longs Drug Stores 13,465 505
................................................................................
Pep Boys 18,741 294
................................................................................
67,066
............
Total Consumer Services 364,711
............
ENERGY 6.1%
Domestic Petroleum Reserves 0.5%
Atlantic Richfield 106,933 6,977
................................................................................
Phillips Petroleum 84,760 3,613
................................................................................
Burlington Resources 59,348 2,126
................................................................................
Anadarko Petroleum 38,582 1,191
................................................................................
Sonat 35,172 952
................................................................................
Apache 31,293 792
................................................................................
Union Pacific Resources 78,989 716
................................................................................
16,367
............
Foreign Petroleum Reserves 0.0%
Kerr-McGee 15,289 585
................................................................................
585
............
Gas Utilities 0.5%
Enron 109,358 6,240
................................................................................
Williams Companies 141,412 4,410
................................................................................
Sempra Energy 79,850 2,026
................................................................................
Consolidated Natural Gas 32,382 1,749
................................................................................
Columbia Gas System 27,111 1,566
................................................................................
NICOR 16,090 680
................................................................................
Peoples Energy 11,301 451
................................................................................
ONEOK 11,266 407
................................................................................
Eastern Enterprises 6,798 297
................................................................................
17,826
............
International Oil 3.3%
Exxon 808,955 59,155
................................................................................
Mobil 258,360 22,510
................................................................................
Chevron 216,279 17,938
................................................................................
11
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Texaco 178,122 $ 9,418
................................................................................
Unocal 79,219 2,312
................................................................................
Oryx Energy * 37,095 498
................................................................................
111,831
.............
Oil Refining, Distribution 1.3%
Royal Dutch Petroleum ADR 713,466 34,157
................................................................................
USX-Marathon 102,187 3,078
................................................................................
Coastal 70,363 2,458
................................................................................
Amerada Hess 31,462 1,565
................................................................................
Ashland 24,778 1,199
................................................................................
Sunoco 29,772 1,074
................................................................................
43,531
.............
Oil Service 0.5%
Schlumberger 182,371 8,412
................................................................................
Halliburton 146,129 4,329
................................................................................
Baker Hughes 110,847 1,961
................................................................................
Rowan * 31,206 312
................................................................................
Helmerich & Payne 15,553 301
................................................................................
15,315
.............
Total Energy 205,455
.............
FINANCIAL 15.5%
Bank & Trust 7.1%
BankAmerica 572,138 34,400
................................................................................
Wells Fargo 536,691 21,434
................................................................................
Bank One 385,928 19,706
................................................................................
First Union 326,311 19,844
................................................................................
Chase Manhattan 280,809 19,113
................................................................................
Bank of New York 252,808 10,175
................................................................................
U.S. Bancorp 242,484 8,608
................................................................................
Fleet Financial Group 188,838 8,439
................................................................................
SunTrust 105,552 8,075
................................................................................
National City 109,192 7,916
................................................................................
Firstar 76,300 7,115
................................................................................
Fifth Third Bancorp 89,410 6,379
................................................................................
J. P. Morgan 58,008 6,094
................................................................................
Mellon Bank 87,281 6,001
................................................................................
12
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Wachovia 67,470 $ 5,899
................................................................................
PNC Bank 99,714 5,397
................................................................................
KeyCorp 149,399 4,781
................................................................................
BB&T 97,089 3,914
................................................................................
BankBoston 98,202 3,824
................................................................................
State Street 54,020 3,758
................................................................................
Comerica 50,813 3,465
................................................................................
Northern Trust 36,483 3,184
................................................................................
Regions Financial 74,464 3,004
................................................................................
Bankers Trust New York 31,611 2,701
................................................................................
Summit Bancorp 57,686 2,520
................................................................................
Mercantile Bancorporation 52,242 2,410
................................................................................
Synovus Financial 88,255 2,151
................................................................................
Huntington Bancshares 70,859 2,137
................................................................................
Union Planters 44,954 2,037
................................................................................
Republic New York 36,351 1,656
................................................................................
236,137
.............
Life Insurance 1.0%
American General 83,276 6,495
................................................................................
Sunamerica 72,791 5,905
................................................................................
CIGNA 69,853 5,400
................................................................................
Aetna 48,274 3,796
................................................................................
Conseco 102,857 3,144
................................................................................
Lincoln National 34,102 2,790
................................................................................
Jefferson Pilot 34,890 2,617
................................................................................
Transamerica 21,254 2,455
................................................................................
Torchmark 47,440 1,675
................................................................................
34,277
.............
Miscellaneous Finance 3.6%
Citigroup 753,145 37,281
................................................................................
American Express 149,543 15,291
................................................................................
Morgan Stanley Dean Witter 191,725 13,613
................................................................................
Associates First Capital (Class A) 240,450 10,189
................................................................................
Merrill Lynch 117,976 7,875
................................................................................
Charles Schwab 132,117 7,423
................................................................................
Household International 159,573 6,323
................................................................................
MBNA 250,636 6,250
................................................................................
Providian Financial 46,669 3,500
................................................................................
13
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
SLM Holding 55,398 $ 2,659
................................................................................
Franklin Resources 82,503 2,640
................................................................................
Capital One Financial 22,036 2,534
................................................................................
Lehman Brothers 39,465 1,739
................................................................................
Bear Stearns 37,806 1,413
................................................................................
118,730
.............
Mortgage Financing 1.2%
Fannie Mae 341,903 25,301
................................................................................
Freddie Mac 225,491 14,530
................................................................................
Countrywide Credit 37,438 1,879
................................................................................
41,710
.............
Other Insurance 2.3%
American International Group 349,450 33,766
................................................................................
Allstate 274,546 10,604
................................................................................
Hartford Financial Services Group 78,457 4,305
................................................................................
Progressive 24,094 4,081
................................................................................
Loews 37,810 3,715
................................................................................
Chubb 53,897 3,496
................................................................................
Aon 57,158 3,165
................................................................................
St. Paul Companies 77,616 2,697
................................................................................
UNUM 44,880 2,620
................................................................................
MBIA 32,971 2,162
................................................................................
SAFECO 47,074 2,023
................................................................................
Cincinnati Financial 55,158 2,022
................................................................................
Provident 44,882 1,863
................................................................................
MGIC Investment 38,209 1,521
................................................................................
78,040
.............
Thrift Institutions 0.3%
Washington Mutual 194,528 7,428
................................................................................
Golden West Financial 18,821 1,726
................................................................................
9,154
.............
Total Financial 518,048
.............
HEALTH CARE 12.4%
Drugs, Medicine 10.8%
Merck 396,352 58,536
................................................................................
Pfizer 431,881 54,174
................................................................................
14
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Bristol-Myers Squibb 329,804 $ 44,132
................................................................................
Johnson & Johnson 447,442 37,529
................................................................................
Eli Lilly 366,200 32,546
................................................................................
Schering-Plough 486,830 26,897
................................................................................
American Home Products 438,897 24,715
................................................................................
Abbott Laboratories 504,190 24,705
................................................................................
Warner-Lambert 273,075 20,532
................................................................................
Monsanto 207,842 9,873
................................................................................
Pharmacia & Upjohn 169,322 9,588
................................................................................
Amgen * 84,192 8,798
................................................................................
Cardinal Health 66,950 5,080
................................................................................
ALZA * 29,431 1,538
................................................................................
Allergan 21,836 1,414
................................................................................
Mallinkrodt 25,121 774
................................................................................
360,831
.............
Health Care (Non-drug) 1.0%
Medtronic 162,260 12,048
................................................................................
Baxter International 95,522 6,143
................................................................................
Guidant 50,670 5,586
................................................................................
Becton, Dickinson 81,490 3,479
................................................................................
Boston Scientific * 126,905 3,403
................................................................................
Biomet 36,204 1,456
................................................................................
Bausch & Lomb 18,365 1,102
................................................................................
C. R. Bard 18,341 908
................................................................................
St. Jude Medical * 29,076 805
................................................................................
34,930
.............
HMO/Hospital Management 0.6%
Columbia/HCA Healthcare 210,907 5,220
................................................................................
IMS Health 54,913 4,142
................................................................................
United HealthCare 62,998 2,713
................................................................................
Tenet Healthcare * 101,519 2,665
................................................................................
HealthSouth * 140,617 2,171
................................................................................
HCR Manor Care * 38,474 1,130
................................................................................
Humana * 54,936 979
................................................................................
19,020
.............
Total Health Care 414,780
.............
15
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
PROCESS INDUSTRIES 2.1%
Chemicals 1.5%
DuPont 375,361 $ 19,918
................................................................................
Dow Chemical 74,404 6,766
................................................................................
PPG Industries 59,886 3,488
................................................................................
Air Products and Chemicals 75,702 3,028
................................................................................
Occidental Petroleum 115,299 1,946
................................................................................
Praxair 53,302 1,879
................................................................................
Union Carbide 43,563 1,852
................................................................................
Rohm & Haas 60,087 1,810
................................................................................
Avery Dennison 38,722 1,745
................................................................................
Eastman Chemical 27,757 1,242
................................................................................
Morton International 41,731 1,022
................................................................................
Sigma Aldrich 32,857 963
................................................................................
Hercules 34,038 932
................................................................................
Engelhard 46,981 916
................................................................................
Great Lakes Chemical 19,627 785
................................................................................
Nalco Chemical 22,687 703
................................................................................
W. R. Grace 25,280 397
................................................................................
49,392
.............
Forest Products 0.0%
Louisiana Pacific 36,049 660
................................................................................
660
.............
Paper 0.6%
International Paper 101,901 4,566
................................................................................
Weyerhaeuser 65,100 3,308
................................................................................
Fort James 72,094 2,884
................................................................................
Georgia-Pacific 30,242 1,771
................................................................................
Union Camp 22,221 1,500
................................................................................
Champion International 31,808 1,288
................................................................................
Willamette Industries 36,671 1,229
................................................................................
Mead 34,162 1,001
................................................................................
Westvaco 33,982 911
................................................................................
Boise Cascade 19,636 609
................................................................................
Potlatch 8,847 326
................................................................................
19,393
.............
Total Process Industries 69,445
.............
16
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
TECHNOLOGY 20.3%
Aerospace 0.6%
Boeing 332,677 $ 10,854
................................................................................
Lockheed Martin 65,009 5,510
................................................................................
General Dynamics 43,141 2,529
................................................................................
B. F. Goodrich 24,627 883
................................................................................
19,776
.............
Analytical Equipment 0.7%
Emerson Electric 145,537 8,805
................................................................................
Raytheon (Class B) 98,683 5,255
................................................................................
Honeywell 42,543 3,204
................................................................................
Northrop Gruman 23,175 1,695
................................................................................
Perkin-Elmer 16,049 1,566
................................................................................
KLA-Tencor * 28,299 1,228
................................................................................
Thermo Electron * 54,139 917
................................................................................
Snap-On 20,086 699
................................................................................
Tektronix 17,875 537
................................................................................
Raytheon (Class A) 10,200 527
................................................................................
Millipore 15,575 443
................................................................................
24,876
.............
Business Machines 5.1%
IBM 310,607 57,384
................................................................................
Dell Computer * 420,997 30,825
................................................................................
COMPAQ Computer 566,121 23,742
................................................................................
Hewlett-Packard 343,805 23,486
................................................................................
Xerox 109,016 12,864
................................................................................
Sun Microsystems * 126,796 10,849
................................................................................
Pitney Bowes 89,543 5,915
................................................................................
Gateway 2000 * 52,556 2,690
................................................................................
Apple Computer * 43,350 1,776
................................................................................
Silicon Graphics * 59,236 763
................................................................................
Ikon Office Solutions 41,674 357
................................................................................
Data General * 15,015 247
................................................................................
170,898
.............
Communications Equipment 2.4%
Lucent Technologies 437,614 48,138
................................................................................
Motorola 198,129 12,098
................................................................................
Northern Telecom 215,799 10,817
................................................................................
17
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Tellabs * 65,650 $ 4,501
................................................................................
General Instrument * 54,841 1,861
................................................................................
Harris 25,944 950
................................................................................
Scientific-Atlanta 24,252 553
................................................................................
78,918
.............
Computer Communications 1.8%
Cisco Systems * 522,591 48,519
................................................................................
3Com * 118,857 5,330
................................................................................
Ascend Communications * 72,470 4,767
................................................................................
Cabletron Systems * 51,283 430
................................................................................
59,046
.............
Computer Peripherals 0.5%
EMC* 165,522 14,070
................................................................................
Seagate Technology * 79,580 2,407
................................................................................
16,477
.............
Computer Services 1.7%
America Online 151,200 24,153
................................................................................
Electronic Data Systems 163,556 8,219
................................................................................
Automatic Data Processing 99,669 7,992
................................................................................
First Data 144,968 4,594
................................................................................
HBO 151,578 4,353
................................................................................
Computer Sciences 51,771 3,336
................................................................................
Unisys * 85,780 2,954
................................................................................
Shared Medical Systems 9,316 465
................................................................................
56,066
.............
Computer Software 4.5%
Microsoft * 829,758 114,947
................................................................................
Oracle * 318,918 13,763
................................................................................
Computer Associates 184,176 7,851
................................................................................
Compuware * 61,000 4,764
................................................................................
BMC Software * 71,136 3,172
................................................................................
Novell * 115,829 2,103
................................................................................
PeopleSoft * 79,922 1,511
................................................................................
Parametric Technology * 92,647 1,506
................................................................................
Adobe Systems 22,746 1,065
................................................................................
Autodesk 16,303 695
................................................................................
151,377
.............
Electronic Manufacturing Equipment 0.1%
Applied Materials * 121,442 5,188
................................................................................
5,188
.............
18
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Electronics 2.9%
Intel 552,921 $ 65,538
................................................................................
Texas Instruments 129,573 11,087
................................................................................
AMP 71,241 3,709
................................................................................
Solectron * 39,000 3,625
................................................................................
Micron Technology * 71,026 3,591
................................................................................
Rockwell International 63,564 3,087
................................................................................
Advanced Micro Devices * 48,695 1,409
................................................................................
Raychem 28,025 905
................................................................................
LSI Logic * 48,689 785
................................................................................
Thomas & Betts 17,795 771
................................................................................
National Semiconductor * 53,237 719
................................................................................
Andrew * 26,654 441
................................................................................
95,667
.............
Total Technology 678,289
.............
UTILITIES 10.7%
Electric Utilities 2.4%
Duke Energy 119,711 7,669
................................................................................
Southern Company 230,712 6,705
................................................................................
Texas Utilities 94,985 4,435
................................................................................
Consolidated Edison 77,494 4,097
................................................................................
PG&E 126,842 3,995
................................................................................
FPL Group 59,511 3,667
................................................................................
Edison International 119,749 3,338
................................................................................
Houston Industries 96,460 3,099
................................................................................
PECO Energy 74,214 3,089
................................................................................
Public Service Enterprise 76,643 3,066
................................................................................
Dominion Resources 64,573 3,019
................................................................................
American Electric Power 63,219 2,975
................................................................................
AES * 59,128 2,801
................................................................................
Unicom 70,709 2,727
................................................................................
FirstEnergy 78,361 2,552
................................................................................
Entergy 80,509 2,506
................................................................................
Carolina Power & Light 50,775 2,390
................................................................................
PacifiCorp 97,653 2,057
................................................................................
DTE Energy 47,387 2,032
................................................................................
Ameren 44,978 1,920
................................................................................
Central and South West 69,294 1,901
................................................................................
19
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
New Century Energies 38,398 $ 1,872
................................................................................
CINergy 54,205 1,863
................................................................................
GPU 41,325 1,826
................................................................................
BGE 49,329 1,523
................................................................................
Northern States Power 51,672 1,434
................................................................................
PP&L Resources 50,986 1,421
................................................................................
Niagara Mohawk * 60,485 975
................................................................................
80,954
............
Telephone, Telegraph 8.3%
AT&T 601,026 45,227
................................................................................
MCI WorldCom * 610,046 43,790
................................................................................
SBC Communications 648,334 34,767
................................................................................
BellSouth 650,958 32,467
................................................................................
Bell Atlantic 516,733 27,387
................................................................................
Ameritech 366,111 23,202
................................................................................
GTE 319,485 20,766
................................................................................
AirTouch Communications * 190,346 13,729
................................................................................
Sprint * 143,709 12,089
................................................................................
U S West 167,513 10,825
................................................................................
ALLTEL 91,178 5,454
................................................................................
Sprint * 135,186 3,126
................................................................................
Nextel Communications * 96,319 2,279
................................................................................
Frontier 56,756 1,930
................................................................................
277,038
............
Total Utilities 357,992
............
Total Common Stocks (Cost $ 2,244,428) 3,322,948
............
Short-Term Investments 1.5%
U.S. Government Obligations 0.1%
U.S. Treasury Bills, 3.86 - 4.61%, 1/7 - 10/14/99 $ 3,500,000 3,443
................................................................................
3,443
............
Money Market Funds 1.4%
Reserve Investment Fund, 5.42% # 46,937,578 46,938
................................................................................
46,938
............
Total Short-Term Investments (Cost $50,381) 50,381
............
20
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
In thousands
Total Investments in Securities
100.8% of Net Assets (Cost $2,294,809) $ 3,373,329
Futures Contracts
In thousands
Contract Unrealized
Expiration Value Gain (Loss)
.......... ......... ...........
Long, 116 Standard & Poor's
500 Stock Index contracts,
$3,500,000 of U.S. Treasury
Bills pledged as initial
margin 3/99 $36,120 $ 2,581
Net payments (receipts) of
variation margin to date (2,483)
...........
Variation margin receivable
(payable) on open futures
contracts 98
Other Assets Less Liabilities (25,934)
............
NET ASSETS $ 3,347,493
------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (362)
Accumulated net realized gain/loss - net of distributions 12,076
Net unrealized gain (loss) 1,081,101
Paid-in-capital applicable to 100,277,136 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares of the
corporation authorized 2,254,678
............
NET ASSETS $ 3,347,493
------------
NET ASSET VALUE PER SHARE $ 33.38
------------
# Seven-day yield
* Non-income producing
ADR American Depository Receipt
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
Year
Ended
12/31/98
- -----------------
Investment Income
- -----------------
Income
Dividend $ 37,463
Interest 2,763
........
Total income 40,226
........
Expenses
Shareholder servicing 4,885
Investment management 4,169
Registration 362
Prospectus and shareholder reports 249
Custody and accounting 202
Legal and audit 21
Directors 13
Miscellaneous 362
........
Total expenses 10,263
........
Net investment income 29,963
........
- -----------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------
Net realized gain (loss)
Securities 58,145
Futures 5,383
........
Net realized gain (loss) 63,528
........
Change in net unrealized gain or loss
Securities 545,830
Futures 2,501
........
Change in net unrealized gain or loss 548,331
........
Net realized and unrealized gain (loss) 611,859
........
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $641,822
--------
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
- -------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
Year
Ended
12/31/98 12/31/97
Increase (Decrease) in Net Assets
Operations
Net investment income $ 29,963 $ 20,941
Net realized gain (loss) 63,528 13,440
Change in net unrealized gain or loss 548,331 328,370
..........................
Increase (decrease) in net assets
from operations 641,822 362,751
..........................
Distributions to shareholders
Net investment income (30,728) (20,538)
Net realized gain (8,434) (15,557)
..........................
Decrease in net assets from
distributions (39,162) (36,095)
..........................
Capital share transactions *
Shares sold 1,652,651 1,089,014
Distributions reinvested 38,253 35,129
Shares redeemed (854,675) (350,274)
Redemption fees received 283 141
..........................
Increase (decrease) in net assets
from capita share transactions 836,512 774,010
..........................
Net Assets
Increase (decrease) during period 1,439,172 1,100,666
Beginning of period 1,908,321 807,655
..........................
End of period $ 3,347,493 $ 1,908,321
--------------------------
* Share information
Shares sold 55,811 45,621
Distributions reinvested 1,237 1,426
Shares redeemed (29,114) (14,418)
..........................
Increase (decrease) in shares outstanding 27,934 32,629
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
T. Rowe Price Equity Index 500 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 Equity Index 500 Fund (the fund),
a diversified, open-end management investment company, is one of the portfolios
established by the corporation and commenced operations on March 30, 1990.
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
24
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. 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.
Securities Lending The fund lends its securities to approved brokers to earn
additional income and receives cash and U.S. government securities as collateral
against the loans. Cash collateral received is invested in a money market pooled
account by the fund's lending agent. Collateral is maintained over the life of
the loan in an amount not less than 100% of the value of loaned securities.
Although risk is mitigated by the collateral, the fund could experience a delay
in recovering its securities and a possible loss of income or value if the
borrower fails to return them. At December 31, 1998, the value of loaned
securities was $80,687,000; aggregate collateral consisted of $83,424,000 in the
securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term and
U.S. Government securities, aggregated $964,815,000 and $118,061,000,
respectively, for the year ended December 31, 1998.
25
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income.
In order for the fund's capital accounts and distributions to shareholders to
reflect the tax character of certain transactions, the following
reclassifications were made during the year ended December 31, 1998. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
- --------------------------------------------------------------------------------
Undistributed net realized gain $ (44,925,000)
Paid-in-capital 44,925,000
At December 31, 1998, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$2,294,809,000. Net unrealized gain aggregated $1,078,520,000 at period-end, of
which $1,134,459,000 related to appreciated investments and $55,939,000 to
depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $319,000 was payable at December 31, 1998. The fee is computed daily
and paid monthly, and is equal to 0.20% of the fund's average daily net assets.
Under the terms of the investment management agreement, the manager is required
to bear any expenses through December 31, 1999, which would cause the fund's
ratio of expenses to average net assets to exceed 0.40%. Thereafter, through
December 31, 2001, the fund is required to reimburse the manager for these
expenses, provided that average net assets have grown or expenses have declined
sufficiently to allow reimbursement without causing the fund's ratio of expenses
to average net assets to exceed 0.40%. Pursuant to this agreement, $955,000 of
management fees were not accrued by the fund for the year ended December 31,
1998. Additionally, $653,000 of unaccrued management fees
26
<PAGE>
T. Rowe Price Equity Index 500 Fund
- --------------------------------------------------------------------------------
related to a previous expense limitation are subject to reimbursement through
December 31, 1999.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of the fund. T. Rowe Price Services, Inc. is the fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $4,397,000 for the year ended
December 31, 1998, of which $436,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the year ended December 31, 1998, totaled
$2,322,000 and are reflected as interest income in the accompanying Statement of
Operations.
27
<PAGE>
T. Rowe Price Equity Index 500 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 Equity Index 500 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 Equity Index 500 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 each of the fiscal periods presented, 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 audits. We
conducted our audits 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
audits, which included confirmation of securities at December 31, 1998, by
correspondence with custodians, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 21, 1999
28
<PAGE>
T. Rowe Price Equity Index 500 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.
The fund's distributions to shareholders included:
. $1,957,000 from short-term capital gains,
. $6,477,000 from long-term capital gains, subject to the 20% rate gains
category.
For corporate shareholders, $34,841,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
29
<PAGE>
T. Rowe Price Shareholder Services
- --------------------------------------------------------------------------------
Investment Services And Information
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access(R) and the T. Rowe Price Web
site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service commission rates.
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing markets and
financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and
financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
30
<PAGE>
T. Rowe Price Mutual Funds
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS BOND FUNDS
.................................... ...................................... ...............................
<S> <C> <C>
Domestic Domestic Taxable International/Global
Blue Chip Growth Corporate Income Emerging Markets Bond
Capital Appreciation GNMA Global Bond++
Capital Opportunity High Yield International Bond
Diversified Small-Cap Growth New Income
Dividend Growth Short-Term Bond MONEY MARKET FUNDS+++
Equity Income Short-Term U.S. Government ...............................
Equity Index 500* Spectrum Income Taxable
Extended Equity Market Index Summit GNMA Prime Reserve
Financial Services Summit Limited-Term Bond Summit Cash Reserves
Growth & Income U.S. Treasury Intermediate U.S. Treasury Money
Growth Stock U.S. Treasury Long-Term
Health Sciences Tax-Free
Media & Telecommunications Domestic Tax-Free
Mid-Cap Growth California Tax-Free Money
Mid-Cap Value California Tax-Free Bond New York Tax-Free Money
New America Growth Florida Intermediate Tax-Free*** Summit Municipal
New Era Georgia Tax-Free Bond Money Market
New Horizons** Maryland Short-Term
Real Estate Tax-Free Bond Tax-Exempt Money
Science & Technology Maryland Tax-Free Bond
Small-Cap Stock New Jersey Tax-Free Bond BLENDED ASSET FUNDS
Small-Cap Value New York Tax-Free Bond ...............................
Spectrum Growth Summit Municipal Income Balanced
Total Equity Market Index Summit Municipal Intermediate Personal Strategy Balanced
Value Tax-Free High Yield Personal Strategy Growth
Tax-Free Income Personal Strategy Income
International/Global Tax-Free Intermediate Bond+ Tax-Efficient Balanced
Tax-Free Short-Intermediate
Emerging Markets Stock Virginia Short-Term T. ROWE PRICE NO-LOAD
European Stock Tax-Free Bond VARIABLE ANNUITY
Global Stock Virginia Tax-Free Bond ...............................
International Discovery Equity Income Portfolio
International Growth & Income International Stock Portfolio
International Stock Limited-Term Bond Portfolio
Japan Mid-Cap Growth Portfolio
Latin America New America Growth Portfolio
New Asia Personal Strategy Balanced Portfolio
Spectrum International Prime Reserve Portfolio
</TABLE>
* Formerly named Equity Index.
** Closed to new investors.
*** Formerly named Florida Insured Intermediate Tax-Free.
+ Formerly named Tax-Free Insured Intermediate Bond.
++ Formerly named Global Government Bond.
+++ Neither the funds nor their share prices are insured or guaranteed by the
U.S. government.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY. T.
Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
31
<PAGE>
For yield, price, last transaction, Investor Centers:
current balance, or to conduct 101 East Lombard St.
transactions, 24 hours, 7 days Baltimore, MD 21202
a week, call Tele*Access(R):
1-800-638-2587 toll free T. Rowe Price
Financial Center
For assistance 10090 Red Run Blvd.
with your existing Owings Mills, MD 21117
fund account, call:
Shareholder Service Center Farragut Square
1-800-225-5132 toll free 900 17th Street, N.W.
410-625-6500 Baltimore area Washington, D.C. 20006
To open a brokerage account ARCO Tower
or obtain information, call: 31st Floor
1-800-638-5660 toll free 515 South Flower St.
Los Angeles, CA 90071
Internet address:
www.troweprice.com 4200 West Cypress St.
10th Floor
T. Rowe Price Associates Tampa, FL 33607
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.
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. F50-050 12/31/98
