New Age Media Fund
Officers and Directors
James S. Riepe, Chairman of the Board
Jeffrey H. Donahue, Director
A. MacDonough Plant, Director
John D. Gillespie, President
Charles A. Morris, Executive Vice President
Brian D. Stansky, Executive Vice President
Robert N. Gensler, Vice President
Lise J. Buyer, Vice President
Henry H. Hopkins, Vice President
John F. Wakeman, Vice President
Lenora V. Hornung, Secretary
Carmen F. Deyesu, Treasurer
David S. Middleton, Controller
Roger L. Fiery, Assistant Vice President
Edward T. Schneider, Assistant Vice President
Manager:
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, Maryland 21202
Telephone 410-547-2000
Custodian:
Custodial Trust Company
101 Carnegie Center
Princeton, New Jersey 08540
Transfer and Dividend Paying Agent and Registrar:
State Street Bank and Trust Co.
225 Franklin Street
Boston, Massachusetts 02110
For information on the fund, including the NAV, please call toll free
1-800-231-8432
New Age Media Fund
Annual Report
December 31, 1995
Fellow Shareholders
New Age Media stocks posted mixed results in the second half of 1995.
Technology and distribution holdings exhibited strength, while content and
international holdings were relatively weak performers. For the second half of
the year, the fund produced an 18.3% gain, raising its net asset value to
$17.99. The general market, represented by the unmanaged Standard & Poor's 500
Stock Index, returned 14.5% during the same period. The discount between the
fund's net asset value and the price of the New Age Media Fund as quoted on
the NYSE decreased from 21% to 17%. On December 31, 1995, the stock closed at
$14.88, up 15.5% from the June 30 close of $12.88.
For the full year, the fund generated a gain of 43.3%, while the S&P 500
returned 37.6%, and the discount between the fund's net asset value and the
price of the New Age Media Fund decreased from 19% to 17%. On December 31,
1995, the stock was up 38.4% from its December 31, 1994, close of $10.75,
which placed it in the top performance tier for all closed-end mutual funds in
1995.
Performance Comparison
Periods Ended December 31, 1995
6 Months 12 Months
__________ __________
New Age Media Fund
Net Asset Value 18.3% 43.3%
NYSE Share Price 24.6 49.3
S&P 500 14.5 37.6
Market Environment
For the U.S. stock market, 1995 will go down as one of the best years ever.
Alan Greenspan, Chairman of the Federal Reserve, appears to have successfully
engineered a soft landing for the economy through a series of moves designed
to combat inflation without choking off growth. The resulting slow-growth,
low-inflation environment triggered a massive rally in bonds that made up for
the losses of 1994. The surprise element fueling the rally in U.S. equities
was corporate profits soaring on solid sales growth. Companies have become
more productive through better management, restructuring, and the use of
technology to lower costs.
A year ago, we expressed our belief that more realistic expectations, a
lifting of regulatory burdens, and increased merger and acquisition activity
had set the stage for better relative performance by New Age Media stocks.
Developments in all three areas met or exceeded our expectations. The backdrop
today is more clouded. Fundamental performance by fund companies generally met
or exceeded expectations in 1995, but results became mixed as the year
progressed. Advertising-driven businesses such as broadcasting tended to
exceed expectations in the first half of 1995, but earnings disappointed in
the second half.
Technology companies posted impressive results on an absolute and
relative basis. However, pockets of weakness began to emerge as 1995 drew to a
close. After a year of rapid gains, growth in cellular communications
decelerated in late 1995.
The passage of telecommunications reform legislation by wide margins in
the House and Senate in mid-1995 was a major psychological positive for New
Age Media stocks. However, reconciling the differences between these bills has
been a nettlesome process. Although telecommunications legislation is
tantalizingly close, we are concerned about how the philosophical differences
among the House, Senate, and White House will be resolved. The apparent
compromises being made seem likely to result in reforms that are less
deregulatory and more gradual than we previously expected. Our investment
philosophy is still to make regulatory reform a secondary rather than primary
factor in our investment decisions.
Merger and acquisition activity affecting New Age Media companies was
impressive in 1995. The pace and scale of activity was unprecedented, as the
focus of corporate activity shifted from service trials and joint ventures to
merger and acquisition activity, which has a more immediate and substantial
impact on fundamentals. Accommodating financial markets played a key role in
the heightened level of corporate activity as higher equity values, lower
interest rates, and receptive debt and equity markets emboldened corporate
managements.
Among the more significant developments of 1995 were the proposed
acquisition of Capital Cities/ABC by Walt Disney, the planned division of AT&T
into three separate companies, and the purchases of CBS by Westinghouse and
80% of MCA by Seagram. Although the rationale for these and other New Age
Media investments differs, we do seek to exploit many of the secular themes we
described in past letters. We expect merger and acquisition activity to
continue in 1996, especially if telecommunications reform legislation is
passed, but we feel the excitement of 1995 will be difficult to match.
Portfolio Review
Our investment approach employs secular themes as guides in the investment
process but utilizes individual company analysis in the stock selection
process. The secular themes we attempt to exploit remain largely unchanged and
include:
o The increased use of wireless distribution systems for voice, video, and
data transmission, which should be favorable for holdings such as
EchoStar, PanAmSat, and CAI Wireless;
o The growth in electronic entertainment and commerce, which should
benefit First Data, Intuit, and Electronic Arts;
o The global demand for quality entertainment, which should drive demand
for products from Capital Cities/ABC, Time Warner, and Viacom;
o The increasing pervasiveness of technology in communications and
entertainment, which should benefit Adobe Systems, Maxim Integrated
Products, and Xilinx; and
o Growth in networked communications infrastructure, which should continue
to drive demand for products from Ascend Communications, 3Com, and
Security Dynamics Technologies.
The fund's concentration in a limited number of industries makes its
performance more volatile than the overall stock market. Since volatility
works both ways, we attempt to use it both to take profits and to initiate new
investments.
We adjusted the fund's sector diversification in the second half of
1995. The percentage of assets invested in the content sector declined from
23% at the end of June to 19% on December 31 due to selective profit-taking
and repositioning. Distribution stocks rose from 25% of assets to 34% because
of additional investments and strong relative performance. Technology enablers
increased from 24% to 31% of assets as the technology sector continued as a
significant source of strength for the fund and the overall market. Reserves
declined from 7.4% of assets in June to 0.2% on December 31.
Sector Diversification
December 31, 1995
CHART 1 Sector Diversification
While we continue to regard the content sector as one of the greatest
beneficiaries of New Age Media trends, we decided to take some profits in
response to share price appreciation and fundamental uncertainty in some
cases. Positions that were eliminated included Reader's Digest and H&R Block.
New positions included Gaylord Entertainment, the leading sources of country
lifestyle entertainment, and Capital Cities/ABC, which agreed to be acquired
by Walt Disney. At 19% of total assets, the content sector is at the low end
of our desired sector weighting.
The distribution sector of the fund underwent substantial change over
the past six months. Positions in some wired service providers were eliminated
in favor of wireless alternatives. Positions eliminated include cable
television service providers Comcast, Cox Communications, and
Telecommunications, and regional telephone company U.S. West. New positions
were initiated in EchoStar and PanAmSat, two providers of satellite
communications services, and CAI Wireless, a wireless cable television
services provider that is partially owned by Bell Atlantic and NYNEX.
Technology enablers continued to be strong contributors. New positions
were taken in 3Com and Cisco Systems, two leading computer networking
companies. Other new investments included Security Dynamics Technologies, a
leader in computer network security systems, and Verity, a database utility
software provider. Positions were reduced in a number of technology holdings
as we took some profits on superior performing investments.
The decline in international stocks as a percentage of total investments
was due to selective reductions and poor relative performance. Positions were
reduced in Nokia, which has experienced slowing growth in the wireless
communications area, and United International Holdings, where fundamentals
have developed slower than expected. One bright spot in the sector was the
performance of Central European Media, which continued to post
better-than-expected results.
Investments were made in Grupo Televisa, a major diversified Mexican
media company and the largest provider of Spanish language programming, and
other Mexican stocks.
The international sector remains a significant growth area but is
subject to volatility from a number of noncompany sources. We continue to seek
wealth building opportunities based on individual company prospects and
market-specific developments.
Technology and distribution holdings were the major contributors to
second half results. Major contributors in the technology sector included
Ascend Communications, Cascade Communications, and Shiva. All three benefited
from the growth in remote access communications.
Other technology contributors included ALANTEC, a computer networking
company that agreed to be acquired, and Intuit, the leading provider of
personal finance software. In a reversal of first half trends, the technology
sector contained some significant laggards, most notably in semiconductor
holdings such as Cirrus Logic and Xilinx. The distribution sector was once
again a substantial contributor. Superior performers included EchoStar,
PanAmSat, and Paging Network. Laggards included Air Touch Communications and
Mobil Telecommunication Technologies.
The performance of content stocks was once again mixed. Significant
contributions by holdings such as America Online and First Data were tempered
by flat performance from major media companies such as Time Warner and Viacom.
Investment Outlook
At the close of 1993, New Age Media investors enjoyed an environment of
euphoria and unrealistic expectations, only to see the euphoria evaporate
during the following year. After the stunning gains of 1995, the outlook for
New Age Media stocks is now mixed. Investor sentiment is more reserved, and
expectations are clouded by near-term uncertainties about profit growth and
legislative reform affecting the industry.
Technology holdings were consistent and substantial contributors in
1995, and it is unrealistic to expect a similar performance in 1996. On a
positive note, low real interest rates and modest inflation are helping to
create a benign economic environment. Although the process of developing a
telecommunications bill has been prolonged, we are optimistic that this key
building block can be put into place in 1996.
We once again want to thank our stockholders for their support and
reiterate our belief in the long-term wealth building opportunities in New Age
Media investments. As always, we remain committed to seizing opportunities
where we find them on your behalf.
Respectfully submitted,
John D. Gillespie
President
New Age Media Fund
January 31, 1996
Average Annual Compound Total Return
Since Inception
1 Year 10/13/93
________ ______________
43.29% 15.77%
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase. Returns are based on net asset value for the periods presented.
CHART 2 Performance Comparison
Note: The index return does not reflect expenses, which have been deducted
from the fund's return. Returns are based on net asset value for the periods
presented.
Portfolio Highlights
New Age Media Fund, Inc. / December 31, 1995
Key Statistics
Period ended December 31, 1995
Change in N.A.V. ($13.44 to $17.99) $4.55
Change in NYSE Share Price ($10.75 to $14.88) $4.13
_____________________________________________________________________________
Total Net Assets $268.8 Million
Security Classification
Percent of Value
Net Assets (000)
__________ ________
Common Stocks 98.3% $264,220
Preferred Stocks 1.5 4,036
Short-Term Investments 1.5 4,095
_____ ________
Total Investments 101.3 272,351
Other Assets Less Liabilities -1.3 -3,569
_____________________________________________________________________________
Net Assets 100.0% $268,782
Ten Largest Holdings
Percent of
Company Net Assets
________________________________________ __________
Vodafone 4.3%
PanAmSat 4.1
EchoStar 3.7
Mobile Telecommunication Technologies 3.2
CUC International 3.2
Intuit 3.2
First Data 3.0
Adobe Systems 2.9
CAI Wireless 2.7
Gaylord Entertainment 2.6
_____________________________________________________________________________
Total 32.9%
Statement of Net Assets (Values in thousands)
New Age Media Fund, Inc. / December 31, 1995
Common Stocks & Warrants - 98.3%
Value
_____
Content - 18.7%
180,000 shs * America Online . . . . . . . . $ 6,716
50,000 Capital Cities/ABC . . . . . . 6,169
250,000 * CUC International. . . . . . . 8,531
120,000 First Data . . . . . . . . . . 8,025
250,000 Gaylord Entertainment. . . . . 6,937
75,000 Time Warner. . . . . . . . . . 2,841
200,000 Turner Broadcasting Systems
(Class B). . . . . . . . . . . 5,200
125,000 * Viacom (Class B) . . . . . . . 5,922
Total Content 50,341
Distribution - 32.8%
200,000 * AirTouch Communications. . . . 5,650
80,000 AT&T . . . . . . . . . . . . . 5,180
45,000 BHC Communications
(Class A). . . . . . . . . . . 4,253
200,000 * Brightpoint. . . . . . . . . . 2,813
750,000 * CAI Wireless . . . . . . . . . 7,172
325,000 * Centennial Cellular
(Class A). . . . . . . . . . . 5,606
90,000 * Chris-Craft Industries . . . . 3,893
335,731 wts *#! Communications Broadband,
9/23/04. . . . . . . . . . . . 0
400,000 shs * EchoStar Communications
(Class A). . . . . . . . . . . 9,825
200,000 MCI. . . . . . . . . . . . . . 5,237
400,000 * Mobile Telecommunication
Technologies . . . . . . . . . 8,550
225,000 * Paging Network . . . . . . . . 5,414
500,000 * PanAmSat . . . . . . . . . . . 11,062
143,700 * Renaissance
Communications . . . . . . . . 3,179
150,000 * Sinclair Broadcast Group
(Class A). . . . . . . . . . . 2,550
300,000 * United International
Holdings (Class A) . . . . . . 4,387
200,000 * Wireless One . . . . . . . . . 3,375
Total Distribution 88,146
Technology - 30.0%
100,000 * 3Com . . . . . . . . . . . . . 4,669
125,000 Adobe Systems. . . . . . . . . 7,766
50,000 * ALANTEC. . . . . . . . . . . . 2,913
75,000 * Ascend Communications. . . . . 6,089
60,000 shs * Bay Networks . . . . . . . . . $ 2,464
100,000 * Broderbund Software. . . . . . 6,087
30,000 * Cascade Communications . . . . 2,554
200,000 * Cirrus Logic . . . . . . . . . 3,962
35,000 * Cisco Systems. . . . . . . . . 2,614
220,000 * Electronic Arts. . . . . . . . 5,761
109,200 * Intuit . . . . . . . . . . . . 8,531
175,000 * Maxim Integrated Products. . . 6,737
200,400 * Micro Linear . . . . . . . . . 2,092
7,500 * Minnesota Educational
Computing. . . . . . . . . . . 188
100,000 * Pinnacle . . . . . . . . . . . 2,513
50,000 * Security Dynamics
Technologies . . . . . . . . . 2,738
40,000 * Shiva. . . . . . . . . . . . . 2,920
90,000 * Verity . . . . . . . . . . . . 3,937
200,000 * Xilinx . . . . . . . . . . . . 6,075
Total Technology 80,610
International - 13.5%
150,000 * Central European Media
Enterprises Limited
(Class A). . . . . . . . . . . 3,056
750,000 * FlexTech (GBP) . . . . . . . . 5,533
140,000 Grupo Televisa ADR . . . . . . 3,150
150,000 Kinnevik (SEK) . . . . . . . . 4,688
75,000 Nokia ADR. . . . . . . . . . . 2,916
50,000 Reuters ADR. . . . . . . . . . 2,766
125,000 * Scandinavian Broadcasting
System . . . . . . . . . . . . 2,773
325,000 Vodafone ADR . . . . . . . . . 11,456
Total International 36,338
Miscellaneous Common Stocks - 3.3% 8,785
Total Common Stocks & Warrants
(Cost $213,719) 264,220
Preferred Stocks - 0.5%
166,667 *#! Crystal Dynamics, Series D . . 1,250
Total Preferred Stocks (Cost $1,250) 1,250
Convertible Preferred Stocks - 1.0%
250,000 *#! Celcore, Series C. . . . . . . 1,500
1,000,000 *#! Communications Broadband,
Series C . . . . . . . . . . . 1,000
1,237 shs *#! Xeikon, Series A (BEL) . . . . $ 286
Total Convertible Preferred Stocks (Cost $3,757) 2,786
Short-Term Investments - 1.5%
United States Treasury Bills,
$2,189,000 5.015%, 5/16/96 . . . . . . 2,146
2,000,000 5.035%, 6/27/96 . . . . . . 1,949
Total Short-Term Investments (Cost $4,095) 4,095
Total Investments in Securities -
101.3% of Net Assets (Cost $222,821) 272,351
Other Assets Less Liabilities. . . . . . . . . . . (3,569)
_________
Value
________
Net Assets Consist of:
Accumulated net realized
gain/loss - net of distributions . . $11,406
Net unrealized gain (loss) . . . . . 49,530
Paid-in-capital applicable to
14,936,666 shares of $0.0001 par
value capital stock outstanding;
1,000,000,000 shares authorized. . . 207,846
________
NET ASSETS . . . . . . . . . . . . . . . $268,782
_________
_________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . $17.99
______
______
* Non-income producing
# Securities contain some restrictions as to public resale - total of
such securities atyear-end amounts to 1.5% of net assets.
! Private Placement
BEL Belgian franc
GBP British sterling
SEK Swedish krona
The accompanying notes are an integral part of these financial statements.
Statement of Operations
New Age Media Fund, Inc. / Year Ended December 31, 1995
(in thousands)
Investment Income
Income
Interest. . . . . . . . . . . . . . . . . . $ 1,253
Dividend (net of foreign taxes of $97). . . 1,164
________
Total income. . . . . . . . . . . . . . . . 2,417
________
Expenses
Investment management . . . . . . . . . . . 2,665
Custody and accounting. . . . . . . . . . . 139
Shareholder servicing . . . . . . . . . . . 50
Registration. . . . . . . . . . . . . . . . 49
Legal and audit . . . . . . . . . . . . . . 36
Prospectus and shareholder reports. . . . . 19
Proxy and annual meeting. . . . . . . . . . 18
Directors . . . . . . . . . . . . . . . . . 16
Miscellaneous . . . . . . . . . . . . . . . 38
________
Total expenses. . . . . . . . . . . . . . . 3,030
________
Net investment income. . . . . . . . . . . . . . (613)
________
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Securities. . . . . . . . . . . . . . . . . 46,441
Foreign currency transactions . . . . . . . (32)
________
Net realized gain (loss). . . . . . . . . . 46,409
________
Change in net unrealized gain or
loss on securities . . . . . . . . . . . . . . . 40,222
________
Net realized and unrealized gain (loss). . . . . 86,631
________
Increase (Decrease) in Net Assets From Operations $ 86,018
________
________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
New Age Media Fund, Inc.
(in thousands)
Year Ended December 31,
1995 1994
__________ __________
Increase (Decrease) in Net Assets From
Operations
Net investment income . . . . . . . $ (613) $ (279)
Net realized gain (loss). . . . . . 46,409 (14,614)
Change in net unrealized
gain or loss. . . . . . . . . . . . 40,222 13,089
________ ________
Increase (decrease) in
net assets from operations. . . . . 86,018 (1,804)
________ ________
Distributions to shareholders
Net investment income . . . . . . . (1,046) (111)
Net realized gain . . . . . . . . . (16,879) -
________ ________
Decrease in net assets
from distributions. . . . . . . . . (17,925) (111)
________ ________
Capital share transactions*
Shares repurchased. . . . . . . . . (307) -
________ ________
Increase (decrease) in net assets. . . . 67,786 (1,915)
Net Assets
Beginning of period. . . . . . . . . . . 200,996 202,911
________ ________
End of period. . . . . . . . . . . . . . $268,782 $200,996
________ ________
________ ________
*Capital share transactions (number of shares)
Shares repurchased. . . . . . . . . (20,000) -
________ ________
________ ________
The accompanying notes are an integral part of these financial statements.
Notes To Financial Statements
New Age Media Fund, Inc. / December 31, 1995
Note 1 - Significant Accounting Policies
New Age Media Fund, Inc. (the fund) is registered under the Investment Company
Act of 1940 as a diversified, closed-end management investment company.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange are valued at the last quoted sales price at the time 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 that are not traded on a particular day
and securities that are 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 their cost which, when combined
with accrued interest, approximates fair value.
For purposes of determining the fund's net asset value per share, the
U.S. dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
B) Currency Translation - Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized and
unrealized security gains and losses is reflected as a component of such gains
and losses.
C) Other - Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and distributions
to shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $263,759,000 and $270,858,000, respectively, for the year ended
December 31, 1995.
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, $1,659,000
of undistributed net investment income was reclassified as a $19,000 decrease
to paid-in-capital and a $1,640,000 decrease to undistributed net realized
gains during the year ended December 31, 1995. The results of operations and
net assets were not affected by the reclassifications.
At December 31, 1995, the aggregate cost of investments for federal
income tax and financial reporting purposes was $222,821,000 and net
unrealized gain aggregated $49,530,000, of which $57,277,000 related to
appreciated investments and $7,747,000 to depreciated investments.
Note 4 - Related Party Transactions
The investment management and administration agreement between the fund and T.
Rowe Price Associates, Inc. (the Manager) provides for an annual investment
management fee, of which $254,000 was payable at December 31, 1995. The fee is
computed weekly and paid monthly at the annual rate of 1.10% of the fund's
weekly net assets.
The Manager and its subsidiaries, under separate agreements with the
fund, are responsible for maintaining the financial records of the fund,
including calculating the fund's net asset value per share and providing
certain shareholder services for all accounts. The fund incurred expenses
pursuant to these related party agreements totaling approximately $68,000 for
the year ended December 31, 1995, of which $6,000 was payable at year-end.
Note 5 - Share Repurchase Program
The Board has authorized the fund to repurchase its shares in the open market.
Repurchases will only be made when the fund's shares are trading at less than
net asset value and at such times and amounts as are believed to be in the
best interests of the fund's shareholders. Any repurchase of shares has the
effect of increasing the net asset value per share of the remaining shares
outstanding.
The fund repurchased 20,000 of its shares for a total of $307,000 during
the year ended December 31, 1995 at a weighted average discount of 19.33% from
net asset value. The discount of individual purchases ranged from 16.89% to
23.74%.
Financial Highlights
New Age Media Fund, Inc.
For a share outstanding throughout each period
______________________________________________
From
Year Ended December 31,October 13, 1993**
______________________ through
1995 1994 December 31, 1993
______ ______ _______________
NET ASSET VALUE,
BEGINNING OF PERIOD. . $13.44 $13.57 $13.93
______ ______ ______
Investment activities
Net investment
income . . . . . . . (0.04) (0.01) 0.01
Net realized and
unrealized
gain (loss). . . . . 5.79 (0.11) (0.37)
______ ______ ______
Total from Investment
Activities . . . . . . 5.75 (0.12) (0.36)
______ ______ ______
Distributions
Net investment
income . . . . . . . (0.07) (0.01) -
Net realized gain. . (1.13) - -
______ ______ ______
Total
Distributions. . . . . (1.20) (0.01) -
______ ______ ______
NET ASSET VALUE,
END OF PERIOD. . . . . $17.99 $13.44 $13.57
______ ______ ______
______ ______ ______
MARKET VALUE,
END OF PERIOD. . . . . $14.88 $10.75 $13.38
______ ______ ______
______ ______ ______
Total investment return
Per share
market value . . . . 49.3% (19.6)% (10.8)%
Per share
net asset value. . . 43.3% (0.9)% (2.6)%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to
average net assets . . 1.25% 1.35% 1.30%!
Ratio of net investment
income to
average net assets . . (0.25)% (0.15)% 0.24%!
Portfolio
turnover rate. . . . . 118.9% 133.9% 58.7%!
Net assets, end of period
(in thousands) . . . .$268,782 $200,996 $202,911
! Annualized.
** Commencement of Operations.
Report of Independent Accountants
To the Board of Directors and Shareholders of
New Age Media Fund, Inc.
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
New Age Media Fund, Inc. (the "Fund") at December 31, 1995, 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, 1995 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE LLP
Baltimore, Maryland
January 18, 1996
Summary of Dividend Reinvestment & Cash Purchase Plan
The Fund operates an optional Dividend Reinvestment & Cash Purchase Plan (the
"Plan") whereby:
a) shareholders may elect to receive dividend and capital gain
distributions in the form of additional shares of the Fund (the Share
Distribution Plan).
b) shareholders may make optional payments (any amount between $100 and
$3,000) which will be used to purchase additional shares in the open
market (the Share Purchase Plan).
For a copy of the Plan brochure, as well as a dividend reinvestment
authorization card, please contact:
1) State Street Bank & Trust Company (the Plan Agent):
P. O. Box 8200
Boston, Massachusetts
02266-8200
U.S.A.
Telephone No.: 800-426-5523 (toll free)
or
2) T. Rowe Price Services, Inc.
Telephone No.: 800-231-8432 (toll free)
Chart 1: Sector Diversification: Pie chart showing sector diversification on
12/31/95: 19% content providers; 33.9% distribution; 31% technology enablers;
14.4% international.
Chart 2: Performance Comparison: A line chart showing $10,000 growing to
$13,833 for NAM and to $14,174 for S&P 500 from 10/13/93 through 12/31/95.
