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
RPRTNAF 6/30/96
New Age Media Fund
Semiannual Report
June 30, 1996
Fellow Shareholders
New Age Media stocks posted mixed results in the first six months of 1996.
Distribution companies were the major contributors to the fund's net asset
value due to strong fundamental performances and higher valuations resulting
from the perceived benefits of telecommunications reform legislation.
Technology stocks, consistent contributors to fund performance in 1995,
generated mixed returns producing both major contributors and laggards.
For the six months ended June 30, the fund produced a 6.61% gain,
bringing its net asset value up to $19.18. The general market, represented by
the Standard & Poor's 500 Stock Index, registered a total return of 10.10%
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 widened from 17.3%
to 20.5%. On June 30, 1996, the stock closed at $15.25, up 2.52% from the
December 31, 1995, close of $14.88 per share.
Performance Comparison
Periods Ended June 30, 1996
6 Months 12 Months
__________ __________
New Age Media Fund
Based on NAV* 6.61% 26.11%
Based on NYSE Share Price* 2.52 27.77
S&P 500 10.10 26.00
* Total Return
Market Environment
The dominant factor in the performance of the broader market indices was the
record levels of cash flow into equity mutual funds during the last six
months. This overwhelmed negative fundamental concerns such as slowing
corporate profit growth and rising interest rates. The torrid rate of equity
issuance, especially initial public offerings, was one of the most visible
signs of the strong demand for stocks. Merger, acquisition, and divestiture
activity remained brisk as corporate America attempts to capitalize on the
confluence of favorable capital markets, high valuations, and the drive to
enhance strategic and competitive positioning.
The passage of telecommunications reform legislation, robust corporate
activity, and the first signs of fundamental weakness in the technology sector
in recent memory were the major developments for New Age Media stocks during
the period. The legislation passed in February was a seminal event in the
communications industry and will have significant short- and long-term
implications. Broadcast companies were the major beneficiaries due to the
relaxation of restrictions on ownership limitation. This set off an almost
instant land rush in both the radio and television industries.
While high-profile deals such as the purchase of Infinity Broadcasting
by Westinghouse garnered much of the headlines, the underlying acquisition
activity among smaller broadcasters was vigorous. Valuation levels rose
significantly in the broadcast sector, doubling from two years ago in some
cases.
The long-term implications of the legislation are less clear.
Competition is certain to increase in all communications sectors, but the
likely winners are difficult to identify. Consolidation of all forms of media
will also result from relaxed ownership rules. However, all marriages will not
go smoothly, and second-guessing is likely, especially about some of the
high-profile transactions.
Corporate activity was not limited to the broadcast sector. Significant
developments included the planned split-up of AT&T and the proposed merger of
NYNEX with Bell Atlantic and SBC Communications with Pacific Telesis. We
expect this type of activity to continue in all New Age Media sectors but are
concerned that some valuations are discounting overly optimistic future
scenarios.
Portfolio Review
The fund's structure changed during the first half of the year. The percentage
of assets invested in the content sector increased from 19% at the end of 1995
to 23% at the end of June. Assets invested in the distribution sector fell to
32% from 34%. Investments in technology enablers decreased to 17% from 31%
because of concerns about fundamental weakness at a growing number of
technology companies. International investments increased to 20% of total
assets from 14%.
Chart 1 - Sector Diversification
In making these changes, we shifted investments toward companies with
stronger revenue and cash flow prospects. Our weighting in the content sector
rose as we took advantage of price weakness in franchise companies such as
Scholastic, a leader in children's publishing, Liberty Media, a major owner of
The Discovery Channel and other leading cable networks, and The New York Times
Company, which is branching out from its core newspaper franchises into other
forms of media.
In our December shareholder letter, we expressed concerns about
potential fundamental weakness in technology. Unfortunately, signs of a
slowdown in once high-flying areas such as semiconductors and software
materialized this year. Most positions in this sector were reduced and a
number were eliminated for fundamental reasons.
Eliminations included Cirrus Logic, a semiconductor vendor, Electronic
Arts, a video game software producer, and Verity, an information software
provider. The fund's distribution weighting fell slightly, but the composition
was changed as holdings were eliminated in AT&T and MCI, the two largest long
distance service providers, and in PageNet.
New positions were established in World Com, a long distance
communications services provider, Jacor Communications, a radio and television
broadcaster, and in Omnipoint, American Portable Telecom, and Intercel, three
fledgling providers of digital wireless communications services. We continued
to take an opportunistic approach to international investments by establishing
positions in Cellular Communications International, a provider of digital
cellular communications services in Italy, LM Ericsson, a leading supplier of
communications equipment, and Toolex Alpha, a provider of compact disc
production systems.
Distribution and technology holdings dominated the list of both major
contributors and laggards on June 30. Major contributors in the distribution
sector included EchoStar, an emerging provider of domestic satellite
television services, Sinclair Broadcasting and Renaissance Communications, two
television station operators, and PanAmSat, a leading provider of
international satellite transmission services. Laggards included Mobile
Telecommunications Technologies and American Portable Telecom.
Major contributions in the technology sector came primarily from
companies involved in networking and included Shiva Corporation, Cascade
Communications, and Security Dynamics. Technology laggards included software
providers such as Adobe Systems, Intuit, and Broderbund Software. Performance
in the content and international sectors was mixed. Contributors included
First Data, a leader in electronic commerce, and Grupo Televisa, the dominant
media company in Mexico and a major provider of Spanish language programming.
Laggards in these areas were Viacom, a major integrated media company, and
Nokia, a leading provider of wireless communications equipment. Both produced
disappointing results to date in 1996.
Investment Outlook
Our outlook for New Age Media stocks is generally positive. Regulatory reform
should enhance the opportunities available to all media companies, and the
capital markets appear receptive. The technology building blocks needed for
advanced video and communications services have reached the field trial stage
and should begin commercial deployment by the end of 1997.
Our primary concerns are high valuation levels in certain sectors,
especially broadcasting, and an aging advertising cycle in a year of peak
demand because of the summer Olympics and the presidential election.
We anticipate uneven financial results from New Age Media companies in
the second half of the year. The value of content franchises should continue
to rise, but the vertical structure of major media companies exposes them to
cyclical and secular factors beyond their control. Distribution companies have
benefited from telecommunications reform legislation. However, 1996 may prove
to be the calm before the storm if advertising growth peaks and competition
increases in this sector.
The winners of the broadcast spectrum auctions will start to launch
voice and data communications services later this year. Facility-based
providers of wire line communications services should continue to expand their
geographic coverage and service offerings. The number of viable video service
offerings will increase with new satellite-based entrants and upgraded cable
television infrastructures.
While 1996 looks like a transition year for many technology companies,
the backdrop for 1997 looks much more favorable. We continue to look at
international investment opportunities on an individual basis and feel many of
the broader trends affecting domestic New Age Media companies apply to
companies abroad.
In spite of near-term uncertainties, we remain confident about the
investment opportunities in major themes we are pursuing: the growing value of
content, the consumerization of wireless communications, the increasing
pervasiveness of digital technology, and the growth in electronic commerce.
We would like to thank our shareholders for their continued support.
Respectfully submitted,
John D. Gillespie
President
New Age Media Fund
July 26, 1996
Average Annual
Compound Total Return
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Since Inception
1 Year 10/13/93
________ ______________
Periods Ended 6/30/96 26.11% 15.35%
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 - SEC Performance Comparison
Portfolio Highlights
New Age Media Fund, Inc. / June 30, 1996
Key Statistics
Periods ended June 30, 1996
Change in N.A.V.
6 Months ($17.99 to $19.18)
12 Months ($16.28 to $19.18)
Change in NYSE Share Price
6 Months ($14.88 to $15.25)
12 Months ($12.88 to $15.25)
Total Net Assets (Millions) $285.8
Security Classification
Percent of Value
Net Assets (000)
__________ ________
Common Stocks and Warrants 91.7% $262,034
Preferred and Convertible
Preferred Stocks 0.9 2,625
Short-Term Investments 11.0 31,406
_____ ________
Total Investments 103.6 296,065
Other Assets Less Liabilities (3.6) (10,264)
Net Assets 100.0% $285,801
Ten Largest Holdings
Percent of
Company Net Assets
________________________________________ __________
First Data 3.3%
Centennial Cellular 2.6
Gaylord Entertainment 2.6
Vodafone 2.4
Cellular Communications International 2.3
Renaissance Communications 2.3
LM Ericsson 2.3
Tele-Communications/Liberty Media 2.2
Scholastic 2.2
Jacor Communications 2.2
Total 24.4%
Statement of Net Assets (Values in thousands)
New Age Media Fund, Inc. / June 30, 1996 (Unaudited)
Common Stocks & Warrants - 91.7%
Value
_____
Content - 22.5%
150,000 shs * All American
Communications. . . . . . . . . . . . $ 1,519
65,000 * America Online. . . . . . . . . . . . . 2,836
170,000 * CUC International . . . . . . . . . . . 6,035
75,000 Disney. . . . . . . . . . . . . . . . . 4,716
20,000 * Factset Research Systems. . . . . . . . 340
120,000 First Data. . . . . . . . . . . . . . . 9,555
262,500 Gaylord Entertainment . . . . . . . . . 7,416
100,000 New York Times (Class A). . . . . . . . 3,262
100,000 * Platinum Entertainment. . . . . . . . . 1,600
150,000 * Premenos Technology . . . . . . . . . . 2,700
210,000 !* Premiere Radio Networks
(Class A) . . . . . . . . . . . . . . 2,638
100,000 * Scholastic. . . . . . . . . . . . . . . 6,225
150,000 * Liberty Media . . . . . . . . . . . . . 3,984
125,000 Time Warner . . . . . . . . . . . . . . 4,906
100,000 Turner Broadcasting Systems
(Class B) . . . . . . . . . . . . . . 2,750
100,000 * Viacom (Class B). . . . . . . . . . . . 3,887
Total Content 64,369
Distribution - 31.7%
170,000 * AirTouch Communications . . . . . . . . 4,803
411,100 * American Portable Telecom . . . . . . . 4,317
45,000 * BHC Communications
(Class A) . . . . . . . . . . . . . . 4,399
550,000 * CAI Wireless. . . . . . . . . . . . . . 5,053
448,200 * Centennial Cellular (Class A) . . . . . 7,507
92,700 * Chris-Craft . . . . . . . . . . . . . . 4,079
150,000 Comcast (Class A Special) . . . . . . . 2,756
335,731 wts * Communications Broadband,
warrants, 9/23/04 . . . . . . . . . . 0
250,000 shs * Cox Communications (Class A). . . . . . 5,406
200,000 * EchoStar (Class A). . . . . . . . . . . 5,625
150,000 * Intercel. . . . . . . . . . . . . . . . 3,038
200,000 * Jacor Communications. . . . . . . . . . 6,212
65,600 * Mobile Telecommunication
Technologies. . . . . . . . . . . . . 955
150,000 * Omnipoint . . . . . . . . . . . . . . . 3,909
200,000 * PanAmSat. . . . . . . . . . . . . . . . 5,775
150,000 * People's Choice TV. . . . . . . . . . . 2,700
200,000 * Renaissance Communications. . . . . . . 6,450
125,000 shs * Sinclair Broadcasting (Class A) . . . . $ 5,391
125,000 Tele-Communications (Class A) . . . . . 2,258
63,600 * Teleport Communications
Group (Class A) . . . . . . . . . . . 1,208
180,000 * Wireless One. . . . . . . . . . . . . . 3,173
100,000 * World Com . . . . . . . . . . . . . . . 5,531
Total Distribution 90,545
Technology - 17.1%
70,000 * 3Com. . . . . . . . . . . . . . . . . . 3,198
100,000 Adobe Systems . . . . . . . . . . . . . 3,569
150,000 * Analog Devices. . . . . . . . . . . . . 3,825
45,000 * Ascend Communications . . . . . . . . . 2,528
140,000 * Bay Networks. . . . . . . . . . . . . . 3,605
70,000 * Broderbund Software . . . . . . . . . . 2,266
45,000 * Cascade Communications. . . . . . . . . 3,063
50,000 * Cisco Systems . . . . . . . . . . . . . 2,834
70,000 * FORE Systems. . . . . . . . . . . . . . 2,524
50,000 * Informix. . . . . . . . . . . . . . . . 1,122
100,000 * Intuit. . . . . . . . . . . . . . . . . 4,700
100,000 * Maxim Integrated Products . . . . . . . 2,731
250,000 * Micro Linear. . . . . . . . . . . . . . 1,844
30,000 * Security Dynamics . . . . . . . . . . . 2,464
45,000 * Shiva . . . . . . . . . . . . . . . . . 3,600
95,200 * XcelleNet . . . . . . . . . . . . . . . 1,000
125,000 * Xilinx. . . . . . . . . . . . . . . . . 3,961
Total Technology 48,834
International - 20.3%
54,500 * AsiaSat ADR . . . . . . . . . . . . . . 1,621
200,000 * Cellular Communications
International . . . . . . . . . . . . 6,675
125,000 * Central European Media
Enterprises Limited
(Class A) . . . . . . . . . . . . . . 3,063
35,000 * Cinar Films (Class B) . . . . . . . . . 665
750,000 * FlexTech (GBP). . . . . . . . . . . . . 5,917
400,000 * Grupo Iusacell ADR. . . . . . . . . . . 3,500
100,000 * Grupo Televisa ADR. . . . . . . . . . . 3,075
100,000 Kinnevik (SEK). . . . . . . . . . . . . 3,036
300,000 LM Ericsson (Class B) ADR . . . . . . . 6,431
250,000 * Metromedia International. . . . . . . . 3,063
75,000 shs Nokia ADR . . . . . . . . . . . . . . . $ 2,775
25,000 Reuters ADR . . . . . . . . . . . . . . 1,811
125,000 * Scandinavian Broadcasting System. . . . 3,086
100,000 * Toolex Alpha. . . . . . . . . . . . . . 2,438
250,000 * United International
Holdings (Class A). . . . . . . . . . 3,500
186,800 Vodafone ADR. . . . . . . . . . . . . . 6,888
61,850 *# Xeikon. . . . . . . . . . . . . . . . . 572
Total International 58,116
Miscellaneous Common Stocks - 0.1% 170
Total Common Stocks & Warrants
(Cost $225,393) 262,034
Preferred Stocks - 0.2%
166,667 * Crystal Dynamics, Series D. . . . . . . 625
Total Preferred Stocks (Cost $1,250) 625
Convertible Preferred Stocks - 0.7%
250,000 !* Celcore, Series C . . . . . . . . . . . 1,500
1,000,000 * Communications Broadband,
Series C. . . . . . . . . . . . . . . 500
Total Convertible Preferred Stocks (Cost $3,509) 2,000
Short-Term Investments - 11.0%
Federal Home Loan Mortgage
Discount Notes
$5,000,000 5.20%, 7/15/96 . . . . . . . . . . 4,990
12,715,000 5.52%, 7/1/96. . . . . . . . . . . 12,715
Federal National Mortgage Assn. Discount Notes
3,800,000 5.23%, 7/12/96 . . . . . . . . . . 3,794
5,000,000 5.30%, 8/13/96 . . . . . . . . . . 4,968
5,000,000 United States Treasury Bills,
5.085%, 9/26/96. . . . . . . . . . 4,939
Total Short-Term Investments (Cost $31,406) 31,406
Total Investments in Securities - 103.6%
of Net Assets (Cost $261,558) $296,065
Other Assets Less Liabilities . . . . . . . . . . . . . . (10,264)
Value
________
Net Assets Consist of:
Accumulated net investment
income - net of distributions . . . . $ (517)
Accumulated net realized
gain/loss - net of distributions. . . 44,501
Net unrealized gain (loss) . . . . . . . 34,507
Paid-in-capital applicable to
14,901,666 shares of $0.0001 par
value capital stock outstanding;
1,000,000,000 shares authorized . . . 207,310
________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $285,801
_________
_________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . $19.18
______
______
! Affiliated company
* Non-income producing
# Securities contain some restrictions as to public resale - total of
such securities at period-end amounts to 0.2% of net assets.
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. / Six Months Ended June 30, 1996 (Unaudited)
In thousands
Investment Income
Income
Interest. . . . . . . . . . . . . . . . . . . . . . . . $ 794
Dividend (net of foreign taxes of $46). . . . . . . . . 385
________
Total income. . . . . . . . . . . . . . . . . . . . . . 1,179
________
Expenses
Investment management . . . . . . . . . . . . . . . . . 1,530
Custody and accounting. . . . . . . . . . . . . . . . . 67
Shareholder servicing . . . . . . . . . . . . . . . . . 26
Legal and audit . . . . . . . . . . . . . . . . . . . . 20
Registration. . . . . . . . . . . . . . . . . . . . . . 12
Proxy and annual meeting. . . . . . . . . . . . . . . . 10
Directors . . . . . . . . . . . . . . . . . . . . . . . 7
Prospectus and shareholder reports. . . . . . . . . . . 3
Miscellaneous . . . . . . . . . . . . . . . . . . . . . 21
________
Total expenses. . . . . . . . . . . . . . . . . . . . . 1,696
________
Net investment income. . . . . . . . . . . . . . . . . . . (517)
________
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities. . . . . . . . . . . . . . . . . . . . . . . 33,103
Foreign currency transactions . . . . . . . . . . . . . (8)
________
Net realized gain (loss). . . . . . . . . . . . . . . . 33,095
________
Change in net unrealized gain or loss on securities. . . . (15,023)
________
Net realized and unrealized gain (loss). . . . . . . . . . 18,072
________
Increase (Decrease) in Net Assets from Operations. . . . . $ 17,555
________
________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
New Age Media Fund, Inc. (Unaudited)
In thousands
6 Months Year
Ended Ended
6/30/96 12/31/95
__________ __________
Increase (Decrease) in Net Assets
Operations
Net investment income. . . . . . . . $ (517) $ (613)
Net realized gain (loss) . . . . . . 33,095 46,409
Change in net unrealized
gain or loss . . . . . . . . . . . . (15,023) 40,222
________ ________
Increase (decrease) in net
assets from operations . . . . . . . 17,555 86,018
________ ________
Distributions to shareholders
Net investment income. . . . . . . . - (1,046)
Net realized gain. . . . . . . . . . - (16,879)
________ ________
Decrease in net assets
from distributions . . . . . . . . . - (17,925)
________ ________
Capital share transactions*
Shares repurchased . . . . . . . . . (536) (307)
________ ________
Increase (decrease) in net assets. . . 17,019 67,786
Net Assets
Beginning of period. . . . . . . . . . 268,782 200,996
________ ________
End of period. . . . . . . . . . . . . $285,801 $268,782
________ ________
________ ________
*Capital share transactions
(number of shares)
Shares repurchased . . . . . . . . . (35,000) (20,000)
________ ________
________ ________
The accompanying notes are an integral part of these financial statements.
Notes To Financial Statements
New Age Media Fund, Inc. / June 30, 1996 (Unaudited)
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 and
commenced operations on October 13, 1993.
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) Affiliated Companies - Investments in companies 5% or more of whose
outstanding voting securities are held by the fund are defined as "Affiliated
Companies" in Section 2(a)(3) of the Investment Company Act of 1940.
C) 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.
D) 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 $146,562,000 and $168,238,000, respectively, for the six months
ended June 30, 1996.
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income.
At June 30, 1996, the aggregate cost of investments for federal income
tax and financial reporting purposes was $261,558,000 and net unrealized gain
aggregated $34,507,000, of which $45,534,000 related to appreciated
investments and $11,027,000 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 $264,000 was payable at June 30, 1996. 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 $34,000 for
the six months ended June 30, 1996, of which $6,000 was payable at period-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 35,000 of its shares for a total of $536,000 during
the six months ended June 30, 1996, at a weighted average discount of 19.16%
from net asset value. The discount of individual purchases ranged from 18.14%
to 20.85%.
Financial Highlights
New Age Media Fund, Inc. (Unaudited)
For a share outstanding throughout each period
______________________________________________________
6 Months Year Ended 10/13/93
Ended ______________________ to
6/30/96 12/31/95 12/31/94 12/31/93
_______ _______ _______ _______
NET ASSET VALUE,
BEGINNING OF
PERIOD . . . . . . . . . . . $17.99 $13.44 $13.57 $13.93
______ ______ ______ ______
Investment activities
Net investment income. . . (0.03) (0.04) (0.01) 0.01
Net realized and
unrealized gain (loss) . . 1.21 5.79 (0.11) (0.37)
______ ______ ______ ______
Total from investment
activities . . . . . . . . 1.18 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) -
______ ______ ______ ______
Total from
share repurchases. . . . . 0.01 - - -
______ ______ ______ ______
NET ASSET VALUE,
END OF PERIOD. . . . . . . . $19.18 $17.99 $13.44 $13.57
______ ______ ______ ______
______ ______ ______ ______
MARKET VALUE,
END OF PERIOD. . . . . . . . $15.25 $14.88 $10.75 $13.38
______ ______ ______ ______
______ ______ ______ ______
Total investment return
Per share market value . . 2.52% 49.26% (19.57)% (10.80)%
Per share net asset value. 6.61% 43.30% (0.88)% (2.58)%
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to
average net assets . . . . . 1.22%! 1.25% 1.35% 1.30%!
Ratio of net investment
income to average
net assets . . . . . . . . . (0.37)%! (0.25)% (0.15)% 0.24%!
Portfolio turnover rate. . . 115.1%! 118.9% 133.9% 58.7%!
Average commission
rate paid. . . . . . . . . . $0.1957 - - -
Net assets,
end of period
(in thousands) . . . . . . . $285,801 $268,782 $200,996 $202,911
! Annualized.
1996 Annual Meeting of Shareholders
On April 30, 1996, the fund held an annual meeting to elect three directors
and to ratify the appointment of Price Waterhouse LLP as the fund's
independent accountants for 1996. A total of 13,586,222.825, or 91.0%, of
eligible shares were voted on both proposals. The results are shown below.
Nominees to the Board of Directors
For Withheld Against
Jeffrey H. Donahue 13,385,762.853 200,459.972 N/A
A. MacDonough Plant 13,384,995.218 201,227.607 N/A
James S. Riepe 13,391,551.118 194,671.707 N/A
For Against Abstain
Price Waterhouse LLP as
independent accountants
for 1996 13,465,567.593 51,340.347 69,314.885
Chart 1- Sector Diversification graph showing Content Providers 22.5%,
Distribution 31.7%, Technology Enablers 17.2%, International 20.3%, Preferred
Stocks 0.9%, Other and Reserves 7.4%.
Chart 2 - SEC Performance Comparison showing the cumulative growth of $10,000
invested in the New Age Media Fund from inception (10/13/93) compared with
$10,000 invested in a broad-based index over the same period.
