Semiannual Report
Summit Income Funds
April 30, 1996
T. Rowe Price
Report Highlights
o The bond market weakened over the last six months due to surprisingly
strong economic growth and inflation concerns.
o The Summit Cash Reserves Fund performed slightly better than its peer
group for the six months ended April 30.
o Despite the unfavorable bond market, the Summit Limited-Term Bond Fund
produced a small gain for the most recent six months, essentially in
line with similar funds.
o The GNMA Fund provided a small but positive return over the most recent
six months as mortgages outperformed Treasuries.
o The bond market could remain weak if economic growth stays strong.
However, future bad news may already be largely discounted.
Fellow Shareholders
The powerful bond market rally that began in 1995 finally ran out of steam in
February, halfway through the Summit Funds' reporting period. Surprisingly
strong economic growth and renewed concerns about inflation drove interest
rates higher and bond prices lower, resulting in weak returns for most bond
funds over the last six months.
MARKET ENVIRONMENT
Proving once again the capricious nature of Wall Street, bond market
psychology changed almost in the blink of an eye. From November through
January, prices continued to rise modestly on the expectation of moderate
economic growth, subdued inflation, and progress toward a balanced budget.
Indeed, with the economic expansion turning five years old and graying at the
temples, some concerns about a recession surfaced. With inflation under
control, the Federal Reserve trimmed the federal funds target in December and
again in January, to 5.25%, and the market awaited further easing to prod the
sluggish economy.
In February, however, the economy began showing signs of unexpected strength,
notably with a stunning 631,000 increase in payroll jobs, one of the largest
monthly increases on record. Inflation picked up slightly due to higher oil
and grain prices, and the economy grew at a healthy 2.8% pace in the first
calendar quarter.
Chart 1 - Interest Rate Levels
As a result, the bond market quickly reversed course from an expectation of
further easing by the Federal Reserve to one of more tightening this year.
After dipping from 5.8% to 5.2% between November and February, the five-year
Treasury note yield rose steeply to 6.3% by the end of April. The yield on
the current coupon GNMA took off as well, jumping from 6.8% in early February
to 7.7% by the end of April. Consequently, the bond market gave back some of
the gains achieved during the rally of 1995.
Summit Cash Reserves Fund
Money market yields dropped through most of the reporting period in tandem
with the federal funds rate. Despite rising in recent weeks in anticipation
of a Fed tightening, they have not yet regained their levels of six months
ago. As shown in the chart, the 90-day Treasury bill yield rose in recent
weeks to close April at 5% but remained below last October's 5.3% level.
Similarly, your fund's seven-day compound yield was 5.13% on April 30 versus
5.56% six months ago.
_____________________________________________________________________________
MONEY FUNDS, INCLUDING YOURS, GENERALLY OUTPERFORMED BOND FUNDS
Anticipating further easing by the Federal Reserve, we maintained an average
maturity about 10 days longer than similar funds from October through January.
This strategy helped delay the rollover of assets into lower-yielding
securities and kept our yield relatively high. Since then, given the stronger
economy and diminishing likelihood of further cuts in short-term interest
rates, the fund has adopted a less aggressive posture relative to its peers.
Our average maturity dropped from 64 days in October to 59 days in April,
bringing the fund's yield more in line with its competitors. We made no major
changes in sector diversification, although we slightly shifted from fixed
rate to floating rate securities, which are more attractive in a rising rate
environment.
Performance Comparison
Periods Ended 4/30/96 6 Months 12 Months
_____________________________________________________________________________
Cash Reserves Fund 2.62% 5.53%
Donoghue's First Tier Money Fund
Report Average* 2.48 5.25
*Estimated.
Money funds, including yours, generally outperformed bond funds in the recent
rising rate environment since they are managed to maintain a stable share
price. The fund provided a solid 2.62% return for the six-month period and
achieved a slight edge over its benchmark for both the six- and 12-month
periods ended April 30.
Summit Limited-Term Bond Fund
For most of the last six months, we continued lengthening the fund's effective
duration, benefiting from the dip in intermediate rates that continued into
February. At the end of April, duration stood at 2.8 years, up from 2.1 years
last October. (Duration is a more accurate measure than maturity of a fund's
price sensitivity to changes in interest rates.) While the longer posture
enhanced the fund's price appreciation when rates were falling, it resulted in
steeper price declines when rates reversed course in February.
Performance Comparison
Periods Ended 4/30/96 6 Months 12 Months
_____________________________________________________________________________
Limited-Term Bond Fund 1.49% 5.57%
Lipper Short Intermediate Investment-Grade
Debt Funds Average 1.39 7.24
Despite the unfavorable bond market, we achieved a small positive return for
the six-month period, essentially in line with the average for similar funds.
Results were better for the 12-month period, although the fund underperformed
the peer group due to the lingering effect of our shorter relative durations
during last spring's rally. Note: Lipper Analytical Services has changed the
fund's benchmark to the one shown in the table, which it considers more
appropriate. The previous benchmark, the Lipper Short Investment-Grade Debt
Funds Average, returned 1.86% and 6.47% for the 6- and 12-month periods ended
April 30, respectively.
Chart 2 - Quality Diversification
We made several portfolio changes in response to the runup in interest rates,
including paring our exposure to Treasuries from 20% to 6% of net assets and
redeploying the proceeds into cash instruments. We also swapped some
Treasuries for BBB-rated utilities that were available at attractive prices,
raising our exposure to that sector from 1% to 8%.
The fund maintained high overall credit quality, with three-quarters of assets
invested in securities rated A or higher. We added incremental yield to the
portfolio by holding 5% of assets in a select group of lower-quality,
higher-yielding securities rated B and BB. However, the yield advantage of
these securities versus investment-grade bonds narrowed significantly in
recent weeks, prompting us to consider a reduction in our high-yield exposure
to raise the fund's overall credit quality.
Summit GNMA Fund
The recent jump in interest rates caused prepayment activity, which can reduce
the total return of some mortgage-backed securities, to retreat toward the
lows of 1994. With prepayments down, GNMAs outperformed Treasuries after
trailing them for most of last year. However, rising interest rates also
resulted in significant price declines that offset the higher level of income
offered by GNMAs. In addition, we eliminated our holdings of long Treasury
bonds as rates rose, but not before giving back some price gains. As a
result, your fund barely eked out a positive return during the most recent
six-month period and slightly trailed its peer group. For the 12 months ended
April 30, the fund produced respectable absolute and relative returns.
Performance Comparison
Periods Ended 4/30/96 6 Months 12 Months
_____________________________________________________________________________
GNMA Fund 0.45% 7.86%
Lipper GNMA Funds Average 0.83 7.75
By eliminating our long Treasury position, we cut our exposure to Treasuries
in half, to 8% of net assets. The proceeds were redeployed into a GNMA
mortgage pool yielding 8%, increasing the fund's yield while reducing its
sensitivity to rising interest rates. Our strategy remained focused on a wide
range of GNMA securities, including lower-coupon mortgages trading at a
discount to par value and higher-coupon issues trading at a premium. Some of
the lower-coupon issues were purchased in the forward market, providing the
liquidity to change our coupon mix efficiently. The fund benefited slightly
from rising rates by holding a 1% position in an interest only (IO) CMO, which
rose in price as rates increased.
OUTLOOK
The bond market will be paying close attention to signs of robust economic
growth and any hint of accelerating inflation. If the economy continues to
expand at the same rate in the second quarter as in the first, the bond market
could experience further weakness. Inflation also remains a concern due to
recent increases in oil and grain prices.
However, the bond market may have already discounted much of the bad news, as
evidenced by the increasingly higher yields of the past few months. In
addition, the economic cycle has reached a mature stage, and it is possible
that growth in the second half of the year may slow from the pace of the first
half.
As always, we appreciate your continued confidence in T. Rowe Price.
Respectfully submitted,
Peter Van Dyke
President
Summit Income Funds
May 20, 1996
T. Rowe Price Summit Income Funds
Portfolio Highlights
Key Statistics
Summit Cash Reserves Fund 10/31/95 4/30/96
_____________________________________________________________________________
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months .028 .026
For 12 months .055 .054
Dividend Yield (7-Day Compound) * 5.56% 5.13%
Weighted Average Maturity (days) 64 59
Weighted Average Quality ** First Tier First Tier
Summit Limited-Term Bond Fund
_____________________________________________________________________________
Price Per Share $ 4.65 $ 4.57
Dividends Per Share
For 6 months 0.15 0.15
For 12 months 0.32 0.30
Dividend Yield *
For 6 months 6.64% 6.54%
For 12 months 7.12 6.70
Weighted Average Maturity (years) 3.1 3.8
Weighted Average Effective Duration (years) 2.1 2.8
Weighted Average Quality *** AA AA-
Summit GNMA Fund
_____________________________________________________________________________
Price Per Share $ 9.81 $ 9.52
Dividends Per Share
For 6 months 0.35 0.34
For 12 months 0.70 0.69
Dividend Yield *
For 6 months 7.27% 7.03%
For 12 months 7.68 7.28
Weighted Average Maturity (years) 10.1 9.8
Weighted Average Effective Duration (years) 5.0 5.7
Weighted Average Quality *** AAA AAA
* Dividends earned and reinvested for the periods indicated are
annualized and divided by the average daily net asset values per share
for the same period.
** All securities purchased in the money fund are rated in the two highest
categories (tiers) as established by national rating agencies or, if
unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
T. Rowe Price Summit Income Funds
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
10/31/95 4/30/96
Summit Cash Reserves Fund
_____________________________________________________________________________
Commercial Paper 60% 50%
Negotiable CDs/BNs Foreign and Domestic 23 21
Foreign and Canadian Government
and Municipalities 10 6
Other Short-Term Obligations 7 23
Fixed Rate Obligations 91 86
Floating Rate Instruments 9 14
Summit Limited-Term Bond Fund
_____________________________________________________________________________
Mortgage-Backed Securities 25% 27%
Industrial 9 10
Banking 6 10
Utilities 1 8
U.S. Treasury Obligations 20 6
Finance & Credit 6 6
Media & Communications 4 6
Commercial Paper 12 5
Asset Backed 4 5
Bank Notes 0 4
Consumer Products 4 3
Investment Dealers 4 2
Consumer Services 1 2
All Other 2 5
Other Assets Less Liabilities 2 1
Summit GNMA Fund
_____________________________________________________________________________
GNMA 89% 92%
U.S. Treasury Obligations 16 8
Government Agencies 7 7
Agency-Backed STRIPs 2 1
Other Assets Less Liabilities - 14 - 8
Performance Comparison
These charts show the value of a hypothetical $10,000 investment in each fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with a broad-based average or index.
The index return does not reflect expenses, which have been deducted from the
fund's return.
Chart 3 - SEC Graph - Summit Cash Reserves Fund
Chart 4 - SEC Graph - Summit Limited-Term Bond Fund
Chart 5 - SEC Graph - Summit GNMA Fund
Average Annual Compound Total Return
1 Since Inception
Periods Ended 4/30/96 Year Inception Date
_____________________________________________________________________________
Summit Cash Reserves Fund 5.53% 4.77% 10/29/93
Summit Limited-Term Bond Fund 5.57 3.20 10/29/93
Summit GNMA Fund 7.86 5.38 10/29/93
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
T. Rowe Price Summit Cash Reserves Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 10/29/93
Ended Ended Through
4/30/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income 0.026 0.055 0.035
Distributions
Net investment income (0.026) (0.055) (0.035)
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return 2.62% 5.68% 3.60%
Ratio of expenses to
average net assets 0.45%! 0.45% 0.45%!
Ratio of net investment
income to average
net assets 5.18%! 5.55% 4.03%!
Net assets, end of period
(in thousands) $ 578,291 $ 433,464 $ 186,523
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Limited-Term Bond Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 10/29/93
Ended Ended Through
4/30/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 4.65 $ 4.64 $ 5.00
Investment activities
Net investment income 0.15 0.32 0.33
Net realized and
unrealized gain (loss) (0.08) 0.01 (0.36)
Total from
investment activities 0.07 0.33 (0.03)
Distributions
Net investment income (0.15) (0.31) (0.33)
Tax return of capital - (0.01) -
Total distributions (0.15) (0.32) (0.33)
NET ASSET VALUE
End of period $ 4.57 $ 4.65 $ 4.64
Ratios/Supplemental Data
Total return 1.49% 7.36% (0.71)%
Ratio of expenses to
average net assets 0.55%! 0.55% 0.55%!
Ratio of net investment
income to average
net assets 6.48%! 6.85% 6.98%!
Portfolio turnover rate 115.1%! 84.3% 296.0%!
Net assets, end of period
(in thousands) $ 25,555 $ 27,004 $ 21,116
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit GNMA Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 10/29/93
Ended Ended Through
4/30/96 10/31/95 10/31/94
NET ASSET VALUE
Beginning of period $ 9.81 $ 9.15 $ 10.00
Investment activities
Net investment income 0.34 0.70 0.69
Net realized and
unrealized gain (loss) (0.29) 0.66 (0.85)
Total from
investment activities 0.05 1.36 (0.16)
Distributions
Net investment income (0.34) (0.67) (0.69)
Tax return of capital - (0.03) -
Total distributions (0.34) (0.70) (0.69)
NET ASSET VALUE
End of period $ 9.52 $ 9.81 $ 9.15
Ratios/Supplemental Data
Total return 0.45% 15.43% (1.67)%
Ratio of expenses to
average net assets 0.60%! 0.60% 0.60%!
Ratio of net investment
income to average
net assets 6.95%! 7.40% 7.31%!
Portfolio turnover rate 120.0%! 173.8% 61.5%!
Net assets, end of period
(in thousands) $ 22,136 $ 22,777 $ 17,184
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Cash Reserves Fund
Unaudited April 30, 1996
Statement of Net Assets Par Value
In thousands
BANK NOTES 6.3%
Bank of New York (Delaware), VR,
5.584%, 7/24/96 $ 10,000 $ 10,000
Comerica Bank, 6.20%, 5/28/96 2,000 2,001
First National Bank of Maryland,
5.13%, 5/9/96 8,000 8,000
PNC Bank N.A., VR, 5.358%, 5/6/96 5,000 4,997
Wachovia Bank of North Carolina,
4.50%, 1/27/97 11,400 11,333
_____________________________________________________________________________
Total Bank Notes (Cost $36,331) 36,331
BANKERS' ACCEPTANCES 2.2%
ABN AMRO Bank, N.V., 5.32%, 5/2/96 5,000 4,911
Corestates Bank, 5.09%, 6/28/96 5,000 4,959
Generale Bank, 5.30%, 9/27/96 3,000 2,920
_____________________________________________________________________________
Total Bankers' Acceptances (Cost $12,790) 12,790
CERTIFICATES OF DEPOSIT 14.9%
Abbey National, (London), 5.35%, 5/3/96 3,000 3,000
Bank One Milwaukee, 5.32%, 6/7/96 13,000 13,000
Banque Nationale de Paris
5.06%, 7/8/96 10,000 10,001
5.35%, 5/2/96 5,000 4,999
Bayerische Hypotheken
(London)
5.04%, 8/9/96 5,000 5,000
5.51%, 10/15/96 2,000 2,000
Bayerische Landesbank Girozentrale,
5.02%, 8/8/96 5,000 5,000
Bayerische Vereinsbank, (London),
5.35%, 7/5/96 5,000 5,003
Canadian Imperial Bank, 5.32%, 6/12/96 5,000 5,000
Commerzbank, 5.35%, 5/3/96 4,000 4,000
MBNA America Bank N.A.
5.30%, 8/2/96 5,000 5,000
5.35%, 5/17/96 7,000 7,000
Societe Generale
5.37%, 6/3/96 2,000 2,000
5.39%, 6/14/96 5,000 5,000
Westdeutsche Landesbank Girozentrale,
(London), 5.38%, 6/5/96 10,000 10,000
_____________________________________________________________________________
Total Certificates of Deposit (Cost $86,003) 86,003
COMMERCIAL PAPER 55.9%
A. H. Robins, 4(2), 5.35%, 5/23/96 $ 3,000 $ 2,990
ABN AMRO North America, 5.08%, 5/6/96 2,000 1,999
Air Products & Chemicals
5.00%, 7/15/96 2,000 1,979
5.35%, 5/29/96 5,000 4,979
Allied Signal, 5.30%, 5/2/96 8,000 7,999
ANZ (Delaware)
5.02%, 6/20/96 3,475 3,451
5.30%, 5/9/96 - 5/23/96 5,500 5,487
Asset Securitization Cooperative, 4(2),
5.30%, 5/17/96 5,000 4,988
Bank of Scotland, 5.30%, 6/10/96 6,000 5,965
Barnett Banks, 5.32%, 5/15/96 7,000 6,986
Bell Atlantic Financial Services,
5.30%, 5/17/96 1,000 998
Bell Atlantic Network Funding,
5.30%, 5/2/96 1,940 1,940
Beta Finance, 4(2), 5.36%, 10/9/96 1,000 976
Bex America Finance, 5.03%, 6/6/96 3,000 2,985
BMW U.S. Capital
5.30%, 6/26/96 6,300 6,248
5.33%, 5/6/96 3,700 3,697
5.35%, 6/17/96 1,000 993
Cargill Financial Services, 4(2),
5.30%, 5/17/96 5,000 4,988
Ciesco, 5.10%, 5/14/96 1,204 1,202
Commonwealth Bank of Australia,
5.33%, 5/20/96 1,700 1,695
Countrywide Funding
5.33%, 5/3/96 - 5/20/96 4,300 4,294
5.38%, 5/17/96 4,365 4,354
CPC International, 4(2), 5.43%, 5/10/96 5,000 4,993
Daimler-Benz North America
5.00%, 6/26/96 4,000 3,969
5.10%, 7/12/96 2,700 2,672
Delaware Funding
4(2)
5.30%, 5/15/96 - 7/23/96 13,567 13,497
5.35%, 5/7/96 - 5/15/96 9,719 9,704
Den Danske, 5.305%, 5/28/96 14,000 13,944
Dover, 4(2), 5.30%, 5/28/96 7,500 7,470
Falcon Asset Securitization, 4(2),
5.30%, 5/20/96 - 6/13/96 $ 5,225 $ 5,198
First Chicago Financial, 4(2),
5.33%, 5/17/96 3,800 3,791
Fleet Mortgage Group, 5.38%, 5/10/96 1,000 999
Ford Motor Credit, 5.31%, 5/13/96 5,000 4,991
Generale Bank, 5.19%, 7/3/96 8,000 7,927
Golden Managers Acceptance, 5.32%, 5/29/96 5,000 4,979
Hewlett Packard, 5.05%, 6/11/96 2,315 2,302
Island Finance Puerto Rico, 5.30%, 5/13/96 4,550 4,542
John Hancock Capital, 4(2), 5.30%, 5/29/96 3,700 3,685
KFW International, 5.30%, 5/17/96 2,500 2,494
Korea Development Bank, 5.30%, 7/25/96 5,000 4,937
Merrill Lynch & Co., 5.32%, 5/22/96 7,000 6,978
Mobil Australia Finance, 4(2),
5.32%, 5/16/96 5,000 4,989
National Australia Funding (Delaware)
5.30%, 5/29/96 2,000 1,992
5.33%, 5/9/96 10,000 9,988
National City Credit, 5.30%, 6/6/96 10,000 9,947
New Center Asset Trust, 5.37%, 5/13/96 10,000 9,982
Nordic Investment, 5.06%, 6/28/96 10,000 9,919
Preferred Receivables Funding,
5.30%, 5/28/96 1,100 1,096
Province of Quebec, 5.07%, 7/12/96 2,000 1,980
SBNSW (Delaware), 5.32%, 10/16/96 11,300 11,020
Societe Generale North America,
5.12%, 7/17/96 5,000 4,945
Southern, 4(2), 5.08%, 5/7/96 6,222 6,217
Southern New England Telecommunications, 4(2),
5.33%, 5/9/96 3,000 2,996
Statoil (Den Norske Stats Oljeselskap),
5.30%, 5/6/96 5,000 4,996
Svenska Handelsbanken, 5.02%, 9/3/96 10,000 9,826
Tasmanian Public Finance
5.20%, 7/15/96 10,000 9,892
5.25%, 9/23/96 3,000 2,936
Teco Finance, 4(2), 5.05%, 5/24/96 5,000 4,984
U.S. Borax & Chemical, 4(2), 5.30%, 8/2/96 2,200 2,170
UBS Finance (Delaware), 5.40%, 5/1/96 135 135
Unifunding
5.32%, 5/8/96 5,000 4,995
5.35%, 10/11/96 2,000 1,951
Western Australian Treasury, 5.07%, 7/29/96 2,000 1,975
Yorkshire Building Society
5.30%, 5/17/96 $ 12,000 $ 11,972
5.32%, 5/17/96 2,000 1,995
_____________________________________________________________________________
Total Commercial Paper (Cost $323,163) 323,163
MEDIUM-TERM NOTES 18.8%
American General Finance, VR,
5.514%, 5/16/96 5,000 5,003
Associates Corporation of North America,
6.875%, 1/15/97 500 505
AT&T, 4.375%, 10/1/96 945 940
AVCO Financial Services, 7.50%, 11/15/96 2,000 2,019
Barnett Banks, 7.10%, 4/1/97 4,450 4,503
Bear Stearns, VR, 5.488%, 5/28/96 5,000 5,000
Campbell Soup, (Eurobond), 7.75%, 2/24/97 4,630 4,720
Corporate Asset Funding, VR,
5.375%, 5/31/96 10,000 9,998
Ford Motor Credit
7.875%, 1/15/97 3,000 3,057
8.60%, 8/14/96 1,000 1,007
VR, 5.691%, 6/17/96 3,400 3,401
General Electric Capital
5.30%, 1/3/97 10,000 9,997
7.625%, 1/10/97 1,100 1,117
(Eurobond), 6.375%, 9/20/96 5,000 5,011
VR
5.270%, 5/24/96 1,000 1,000
5.441%, 5/23/96 500 500
General Motors Acceptance Corporation
8.25%, 1/13/97 2,000 2,040
8.625%, 7/15/96 3,100 3,116
Goldman Sachs Group, VR, 5.414%, 5/22/96 8,000 8,000
International Lease Finance
4.75%, 7/15/96 1,000 998
7.83%, 11/14/96 4,000 4,046
Nationsbank, VR, 5.50%, 6/20/96 1,500 1,501
Norwest Bank of Minnesota, VR,
5.488%, 5/23/96 1,000 1,000
PHH, VR, 5.395%, 5/9/96 9,000 8,998
Sears Roebuck Acceptance, 8.98%, 7/11/96 3,580 3,600
SMM Trust, VR, 5.488%, 6/26/96 15,000 15,000
Waste Management, 7.875%, 8/15/96 $ 1,000 $ 1,006
Wells Fargo, VR, 5.503%, 6/19/96 1,500 1,500
_____________________________________________________________________________
Total Medium-Term Notes (Cost $108,583) 108,583
U.S. GOVERNMENT AGENCY
OBLIGATIONS 1.7%
Federal National Mortgage Assn.
VR
5.435%, 5/1/96 5,000 5,000
6.00%, 10/7/96 5,000 5,000
_____________________________________________________________________________
Total U.S. Government Agency
Obligations (Cost $10,000) 10,000
Total Investments in Securities
99.8% of Net Assets (Cost $576,870) $ 576,870
Other Assets Less Liabilities 1,421
NET ASSETS $ 578,291
Net Assets Consist of:
Accumulated net realized gain/loss -
net of distributions $ 10
Paid-in-capital applicable to 578,280,384 shares
of $0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 578,281
NET ASSETS $ 578,291
NET ASSET VALUE PER SHARE $ 1.00
VR Variable Rate
4(2) Commercial Paper sold within terms of a private placement memorandum,
exempt from registration under section 4.2 of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other "accredited
investors".
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Limited-Term Bond Fund
Unaudited April 30, 1996
Statement of Net Assets Par/Shares Value
In thousands
CORPORATE BONDS AND NOTES 50.2%
Banking 9.5%
ABN AMRO Bank (Chicago), N.V.,
7.25%, 5/31/05 $ 250 $ 250
Branch Banking & Trust, 5.70%, 2/1/01 300 287
Chase Manhattan, Sub. Notes, 8.00%, 4/15/02 265 269
Firstar, Sub. Notes, 7.15%, 9/1/00 135 136
Hartford National, Sub. Cap. Notes,
9.85%, 6/1/99 50 54
Huntington National Bank, 4.48%, 10/14/96 130 129
Northern Trust, MTN, 9.15%, 3/13/98 225 236
Norwest, MTN, 6.25%, 3/15/01 275 268
Provident Bank of Ohio, MTN, 5.00%, 6/15/96 125 125
Union Planters, Sub. Notes, 6.25%, 11/1/03 225 210
Washington Mutual, 7.25%, 8/15/05 225 222
Westamerica Bank California, Sub. Cap. Notes,
6.99%, 9/30/03 250 239
_____________________________________________________________________________
2,425
Consumer Products 3.2%
Coca-Cola Bottling Group, Sr. Sub. Notes,
9.00%, 11/15/03 100 101
Coleman Holdings, Sr. Sec. Disc. Notes,
Zero Coupon, 5/27/98 85 71
General Mills, MTN, 7.16%, 10/3/97 250 253
Joseph E. Seagram & Sons, Gtd. Notes,
9.75%, 6/15/00 200 201
Pepsico, MTN, 6.80%, 5/15/00 200 200
_____________________________________________________________________________
826
Consumer Services 2.2%
Columbia HCA Healthcare
Notes, 6.41%, 6/15/00 185 181
Sr. Notes, 6.50%, 3/15/99 65 65
Hertz, Sr. Notes, 9.75%, 2/1/98 300 316
_____________________________________________________________________________
562
Finance and Credit 5.9%
Advanta, MTN, 7.07%, 9/2/97 100 101
American Express, 8.75%, 6/15/96 50 50
Aristar, Sr. Notes, 7.875%, 2/15/99 225 232
Ciesco, MTN, 7.38%, 4/19/00 250 255
HSBC Finance Nederland, Gtd. Sub. Notes,
7.40%, 4/15/03 270 274
Providian, MTN, 6.92%, 5/16/00 300 301
Prudential Insurance Company of America,
6.875%, 4/15/03 300 291
_____________________________________________________________________________
1,504
Industrials 10.3%
Agriculture Minerals, Sr. Notes,
10.75%, 9/30/03 $ 85 $ 90
American Standard, Sr. Deb.,
11.375%, 5/15/04 100 109
Boise Cascade, 9.85%, 6/15/02 300 337
Burlington Industries, Notes,
7.25%, 9/15/05 250 242
Coltec Industries, Sr. Sub. Notes,
10.25%, 4/1/02 150 154
Container Corporation of America, Sr. Notes,
11.25%, 5/1/04 100 103
Cyprus Minerals, Notes, 10.125%, 4/1/02 300 341
Freeport McMoran, Sr. Notes, 7.00%, 2/15/08 250 231
IMC Global, Deb., 9.45%, 12/15/11 85 89
IMO Industries, Sr. Sub. Deb.,
12.00%, 11/1/01 100 103
Lockheed, Notes, 9.375%, 10/15/99 85 92
Methanex, Notes, 7.40%, 8/15/02 225 223
Noranda, Deb., 8.625%, 7/15/02 225 240
Tenneco, 8.00%, 11/15/99 270 279
_____________________________________________________________________________
2,633
Investment Dealers 2.4%
Bear Stearns, 7.625%, 9/15/99 225 231
Merrill Lynch, 7.05%, 4/15/03 300 293
Morgan Stanley Group, 7.32%, 1/15/97 100 101
_____________________________________________________________________________
625
Media and Communications 5.5%
Cox Communications, Notes, 6.375%, 6/15/00 250 245
Heritage Media, Sr. Sub. Notes,
11.00%, 10/1/02 100 106
News America Holdings, Sr. Notes,
7.50%, 3/1/00 225 229
TCI Communications, Sr. Notes,
8.00%, 8/1/05 230 225
Time Warner, Notes, 7.95%, 2/1/00 225 231
Walt Disney, Sr. Notes, 6.375%, 3/30/01 275 271
Young Broadcasting, Gtd. Sr. Sub. Notes,
11.75%, 11/15/04 85 92
_____________________________________________________________________________
1,399
Petroleum 0.6%
Occidental Petroleum, MTN, 5.90%, 11/9/98 125 123
Petroleum Heat and Power, Sr. Sub. Deb.,
12.25%, 2/1/05 29 32
_____________________________________________________________________________
155
Retail 1.3%
Federated Department Stores, Sr. Notes,
10.00%, 2/15/01 85 90
Sears Roebuck and Company, Notes,
5.99%, 12/26/00 250 242
_____________________________________________________________________________
332
Transportation 1.4%
Federal Express, 6.25%, 4/15/98 $ 100 $ 99
Union Pacific, Sr. Notes, 7.00%, 6/15/00 250 250
_____________________________________________________________________________
349
Utilities 7.9%
Commonwealth Edison, 1st Mtg. Bonds,
9.375%, 2/15/00 250 269
Consumers Power, 1st Mtg. Notes,
6.875%, 5/1/98 152 153
Detroit Edison, MTN, 6.27%, 3/15/00 250 244
Long Island Lighting, 8.75%, 2/15/97 200 204
Niagara Mohawk Power, 1st Mtg. Notes,
5.875%, 11/1/96 65 65
Orange & Rockland Utilities, Deb.,
6.14%, 3/1/00 250 243
Pacific Gas & Electric, 8.75%, 1/1/01 250 267
System Energy Resources, 1st Mtg. Bonds,
7.625%, 4/1/99 215 217
Texas Utilities Electric, Sec. MTN,
6.29%, 11/22/00 125 121
US West Capital Funding, MTN,
6.50%, 11/11/02 250 241
_____________________________________________________________________________
2,024
_____________________________________________________________________________
Total Corporate Bonds and Notes (Cost $13,047) 12,834
WARRANTS 0.0%
President Casinos, Warrants #*! 1 1
_____________________________________________________________________________
Total Warrants (Cost $4) 1
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 26.8%
U.S. Government Agency Obligations 15.2%
Federal Home Loan Mortgage
6.80%, 4/15/18 300 301
7.45%, 10/15/15 193 195
7.50%, 2/15 - 9/15/06 1,436 1,462
8.25%, 7/15/12 100 102
10.75%, 12/1/09 162 177
5 year balloon, 6.00%, 4/1/99 438 431
Federal National Mortgage Assn.
7.00%, 4/1/11 800 795
REMIC, 9.00%, 8/25/11 1 1
9.50%, 9/25/18 140 141
REMIC, Accrual Bond, 7.50%, 8/25/05 268 268
_____________________________________________________________________________
3,873
U.S. Government Guaranteed Obligations 11.6%
Government National Mortgage Assn.
I, 10.00%, 11/15/09 - 10/15/21 $ 979 $ 1,077
II, 10.00%, 10/20/20 244 265
Midget, I
9.00%, 4/15 - 12/15/01 99 105
9.50%, 3/15/98 19 20
10.00%, 8/15/98 - 4/15/01 741 790
10.50%, 2/15/98 - 2/15/01 675 716
_____________________________________________________________________________
2,973
Total U.S. Government Mortgage-Backed
Securities (Cost $6,811) 6,846
U.S. GOVERNMENT OBLIGATIONS 7.1%
U.S. Government Agency Obligations 0.9%
Federal Home Loan Mortgage, 6.725%, 8/15/00 225 224
_____________________________________________________________________________
224
U.S. Treasury Obligations 6.2%
U.S. Treasury Notes
6.875%, 3/31/00 800 814
7.75%, 1/31/00 750 785
_____________________________________________________________________________
1,599
_____________________________________________________________________________
Total U.S. Government Obligations (Cost $1,828) 1,823
ASSET-BACKED SECURITIES 5.1%
Auto-Backed 0.3%
USAA Auto Loan Grantor Trust,
5.00%, 11/15/99 66 65
_____________________________________________________________________________
65
Credit Card-Backed 3.9%
American Express Master Trust,
7.15%, 8/15/99 250 254
Banc One Credit Card Master Trust,
7.80%, 12/15/00 250 258
First Deposit Master Trust, 6.05%, 8/15/02 250 249
Signet Credit Card Master Trust,
5.20%, 2/15/02 250 244
_____________________________________________________________________________
1,005
Receivables-Backed 0.9%
Oakwood Mortgage, 6.45%, 1/15/21 225 220
_____________________________________________________________________________
220
Whole Loans-Backed 0.0%
Bear Stearns, CMO, 9.00%, 6/1/17 $ 8 $ 8
_____________________________________________________________________________
8
_____________________________________________________________________________
Total Asset-Backed Securities (Cost $1,325) 1,298
MUNICIPAL BONDS 1.1%
Taxable Municipal 1.1%
University of Miami, GO, 6.90%, 4/1/04 275 267
_____________________________________________________________________________
Total Municipal Bonds (Cost $275) 267
COMMERCIAL PAPER 5.0%
Investments in Commercial Paper through a
joint account, 5.36 - 5.37%, 5/1/96 1,284 1,284
_____________________________________________________________________________
Total Commercial Paper (Cost $1,284) 1,284
BANK NOTES 3.9%
Wachovia Bank of North Carolina,
5.34%, 5/9/96 1,000 1,000
_____________________________________________________________________________
Total Bank Notes (Cost $1,000) 1,000
Total Investments in Securities
99.2% of Net Assets (Cost $25,574) $ 25,353
Other Assets Less Liabilities 202
NET ASSETS $ 25,555
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ (139)
Accumulated net realized gain/loss -
net of distributions (1,434)
Net unrealized gain (loss) (221)
Paid-in-capital applicable to 5,591,713 shares
of $0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 27,349
NET ASSETS $ 25,555
NET ASSET VALUE PER SHARE $ 4.57
! Private Placement
* Non-income producing
# Securities contain some restrictions as to public resale.
Accrual
Bond Accrued interest is not paid in cash, but is added to remaining
principal
CMO Collateralized Mortgage Obligation
GO General Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit GNMA Fund
Unaudited April 30, 1996
Statement of Net Assets Par Value
In thousands
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 99.6%
U.S. Government Guaranteed Obligations 91.8%
Government National Mortgage Assn.
I
6.50%, 3/15/26 $ 1,019 $ 954
7.00%, 4/15/24 - 12/15/25 2,326 2,241
7.50%, 6/15/22 - 5/15/24 2,436 2,416
8.00%, 4/15/17 - 3/15/25 2,585 2,642
8.50%, 6/15/16 - 12/15/24 1,774 1,849
9.00%, 8/15/08 - 8/15/21 852 907
9.50%, 6/15/09 - 7/15/20 750 817
10.00%, 3/15/18 98 108
10.50%, 9/15/13 - 12/15/19 1,289 1,418
11.00%, 12/15/09 - 7/15/19 259 289
11.50%, 6/15 - 12/15/15 83 94
II
9.00%, 5/20/22 - 3/20/25 832 868
9.50%, 2/20/17 - 12/20/20 363 385
10.00%, 1/20/14 - 3/20/21 316 343
11.00%, 9/20/17 47 53
GPM, I
9.25%, 7/15/16 - 8/15/21 142 149
9.50%, 7/15/09 83 89
10.00%, 8/15/13 4 5
Project Loan, I, 8.50%, 1/15/27 201 208
REMIC, 6.50%, 10/16/24 3,000 2,572
TBA, I
6.50%, 1/15/24 1,000 936
7.00%, 7/15/20 1,000 964
_____________________________________________________________________________
20,307
U.S. Government Agency Obligations 6.6%
Federal Home Loan Mortgage
5.00%, 7/15/05 50 49
7.50%, 12/15/19 500 504
Federal National Mortgage Assn.
5.00%, 11/25/20 - 8/25/22 1,016 884
8.00%, 1/25/21 31 31
_____________________________________________________________________________
1,468
Stripped Mortgage Securities 1.2%
Federal National Mortgage Assn.
CMO, Interest Only, 8.50%, 4/1/22** $ 826 $ 249
REMIC, Principal Only, Zero Coupon,
9/25/98 25 22
_____________________________________________________________________________
271
_____________________________________________________________________________
Total U.S. Government Mortgage-Backed Securities
(Cost $22,233) 22,046
U.S. GOVERNMENT OBLIGATIONS 8.2%
U.S. Treasury Obligations 8.2%
U.S. Treasury Bonds, 6.00%, 2/15/26 1,350 1,200
U.S. Treasury Notes, 4.75%, 2/15/97 615 611
_____________________________________________________________________________
Total U.S. Government Obligations (Cost $1,848) 1,811
ASSET-BACKED SECURITIES 0.3%
Home Equity Loans-Backed 0.3%
Prudential Home Mortgage Securities,
6.00%, 10/25/07 78 77
_____________________________________________________________________________
Total Asset-Backed Securities (Cost $79) 77
Total Investments in Securities
108.1% of Net Assets (Cost $24,160) $ 23,934
Other Assets Less Liabilities (1,798)
NET ASSETS $ 22,136
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ (128)
Accumulated net realized gain/loss -
net of distributions (355)
Net unrealized gain (loss) (226)
Paid-in-capital applicable to 2,325,296 shares
of $0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 22,845
NET ASSETS $ 22,136
NET ASSET VALUE PER SHARE $ 9.52
** For Interest Only securities, amount represents notional principal, on
which the fund receives interest
CMO Collateralized Mortgage Obligation
GPM Graduated Payment Mortgage
REMIC Real Estate Mortgage Investment Conduit
TBA To be announced security was purchased on a forward commitment basis;
the payable for securities purchased under such agreements totaled
$1,916,000 at 4/30/96.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Summit Income Funds
Unaudited
Statement of Operations
_____________________________________________________________________________
In thousands Cash Limited-
Reserves Term Bond GNMA
Fund Fund Fund
6 Months 6 Months 6 Months
Ended Ended Ended
4/30/96 4/30/96 4/30/96
Investment Income
Interest income $ 14,681 $ 950 $ 860
Investment management and
administrative expenses 1,173 74 68
Net investment income 13,508 876 792
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
on securities 5 (64) (168)
Change in net unrealized gain or loss
on securities 61 (419) (507)
Net realized and unrealized
gain (loss) 66 (483) (675)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 13,574 $ 393 $ 117
The accompanying notes are an integral part of these financial statements. <PAGE>
<TABLE>
<CAPTION>
T. Rowe Price Summit Income Funds
Unaudited
Statement of Changes in Net Assets
In thousands
_____________________________________________________________________________
Cash Reserves Limited-Term
Fund Bond Fund GNMA Fund
6 Months Year 6 Months Year 6 Months Year
Ended Ended Ended Ended Ended Ended
4/30/96 10/31/95 4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 13,508 $ 17,027 $ 876 $ 1,539 $ 792 $ 1,384
Net realized gain (loss) 5 4 (64) (439) (168) (288)
Change in net unrealized
gain or loss 61 22 (419) 503 (507) 1,547
Increase (decrease) in
net assets from operations 13,574 17,053 393 1,603 117 2,643
Distributions to shareholders
Net investment income (13,508) (17,027) (876) (1,478) (792) (1,309)
Tax return of capital - - - (62) - (75)
Decrease in net assets
from distributions (13,508) (17,027) (876) (1,540) (792) (1,384)
Capital share transactions*
Shares sold 578,188 720,697 8,967 17,791 7,144 11,514
Distributions reinvested 12,576 15,823 665 1,190 549 1,002
Shares redeemed (446,003) (489,605) (10,598) (13,156) (7,659) (8,182)
Increase (decrease) in
net assets from capital
share transactions 144,761 246,915 (966) 5,825 34 4,334
Net Assets
Increase (decrease)
during period 144,827 246,941 (1,449) 5,888 (641) 5,593
Beginning of period 433,464 186,523 27,004 21,116 22,777 17,184
End of period $ 578,291 $ 433,464 $ 25,555 $ 27,004 $ 22,136 $ 22,777
*Share information
Shares sold 578,188 720,697 1,924 3,847 728 1,206
Distributions reinvested 12,575 15,823 143 257 56 105
Shares redeeemed (446,003) (489,605) (2,277) (2,858) (780) (868)
Increase (decrease)
in shares outstanding 144,760 246,915 (210) 1,246 4 443
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
T. Rowe Price Summit Income Funds
Unaudited April 30, 1996
Notes to Financial Statements
Note 1 - Significant Accounting Policies
T. Rowe Price Summit Funds, Inc., (the Corporation) is registered under the
Investment Company Act of 1940. The Summit Cash Reserves Fund (the Cash
Reserves Fund), the Summit Limited-Term Bond Fund (the Limited-Term Bond
Fund), and the Summit GNMA Fund (the GNMA Fund), diversified, open-end
management investment companies, are the three portfolios established by the
Corporation and commenced operations on October 29, 1993.
Valuation
Debt securities are generally traded in the over-the-counter market. Except
for securities held by the Money Fund, investments in securities originally
issued with maturities of one year or more are stated at fair value as
furnished by dealers who make markets in such securities or by an independent
pricing service, which considers yield or price of bonds of comparable
quality, coupon, maturity, and type, as well as prices quoted by dealers who
make markets in such securities. Securities held by the bond funds with
original maturities of less than one year are stated at fair value, which is
determined by using a matrix system that establishes a value for each security
based on money market yields. Securities held by the Money Fund are valued at
amortized cost.
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
each fund, as authorized by the Board of Directors.
Premiums and Discounts
Premiums and discounts on debt securities, other than mortgage-backed
securities, are amortized for both financial reporting and tax purposes.
Premiums and discounts on mortgage-backed securities are recognized upon
principal repayment as gain or loss for financial reporting purposes and as
ordinary income for 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. Distributions to shareholders are recorded by each
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
Commercial Paper Joint Account
The Limited-Term Bond Fund, and other affiliated funds, may transfer
uninvested cash into a commercial paper joint account, the daily aggregate
balance of which is invested in high-grade commercial paper. All securities
purchased by the joint account satisfy the Limited-Term Bond Fund's criteria
as to quality, yield, and liquidity.
Other
Purchases and sales of U.S. government securities and other portfolio
securities, excluding short-term securities, for the six months ended April
30, 1996, were as follows:
Limited-Term GNMA
Bond Fund Fund
U.S. government securities
Purchases $ 4,769,000 $ 15,027,000
Sales 8,452,000 16,137,000
Other securities
Purchases 10,513,000 -
Sales 6,053,000 13,000
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since each fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income. The Limited-Term Bond Fund has unused realized capital
loss carryforwards for federal income tax purposes of $1,371,000, of which
$1,017,000 expires in 2002, and $354,000 in 2003. The GNMA Fund has an unused
realized capital loss carryforwards for federal income tax purposes of
$187,000, which expires in 2003. Each fund intends to retain gains realized in
future periods that may be offset by available capital loss carryforwards.
At April 30, 1996, the aggregate cost of investments for the Cash Reserves,
Limited-Term Bond, and GNMA funds for federal income tax and financial
reporting purposes was $576,870,000, $25,574,000, and $24,160,000,
respectively. For the Cash Reserves Fund, amortized cost is equivalent to
value; and for the Limited-Term Bond and GNMA funds, net unrealized gain
(loss) on investments was as follows:
Limited-Term GNMA
Bond Fund Fund
Appreciated investments $ 107,000 $ 222,000
Depreciated investments (328,000) (448,000)
Net unrealized gain (loss) $ (221,000) $ (226,000)
Note 4 - Related Party Transactions
The investment management and administrative agreement between each fund and
T. Rowe Price Associates, Inc. provides for an all-inclusive annual fee, of
which $147,000 was payable at April 30, 1996 by the Cash Reserves Fund. The
fee, computed daily and paid monthly, is equal to 0.45% of average daily net
assets for the Cash Reserves Fund, 0.55% of average daily net assets for the
Limited-Term Bond Fund, and 0.60% of average daily net assets for the GNMA
Fund. Pursuant to the agreement, investment management, shareholder servicing,
transfer agency, accounting, and custody services are provided to each fund,
and interest, taxes, brokerage commissions, and extraordinary expenses are
paid directly by each fund.
T. Rowe Price Shareholder Services
To help shareholders monitor their current investments and make decisions that
accurately reflect their financial goals, T. Rowe Price offers a wide variety
of information and services - at no extra cost.
Knowledgeable Service Representatives
By Phone 1-800-225-5132 Available Monday through Friday from 8 a.m. to 10
p.m. and weekends from 8:30 a.m. to 5 p.m.
In Person Available in T. Rowe Price Investor Centers.
Account Services
Checking Available on most fixed income funds.
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(registered trademark) and
PC*Access(registered trademark).
Discount Brokerage
Individual Investments Stocks, bonds, options, precious metals, and other
securities; potentially large savings on commissions.
Investment Information
Combined Statement An overview of your T. Rowe Price accounts.
Shareholder Reports Fund managers' reviews of their strategies and results.
The T. Rowe Price Report A 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, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning Kit.
For yield, price, last transaction, and current balance, 24 hours, 7 days a
week, call:
1-800-638-2587 toll free
625-7676 Baltimore area
For assistance with your existing fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. Rowe Price
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 Summit Income
Funds.
Invest With Confidence(registered trademark)
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor REPTSINC 4/30/96
Chart 1 - Interest Rate Levels - A 3-line chart showing yields on the current
coupon GNMA, 5-Year Treasury note, and 90-Day Treasury bill from 4/30/95 to
4/30/96.
Chart 2 - Quality Diversification - A pie chart showing percentage of net
assets invested in various credit quality levels on 4/30/96.
Chart 3 - SEC Graph - Summit Cash Reserves Fund - A two-line graph showing
performance of a $10,000 investment in the Summit Cash Reserves Fund and
Donoghue 1st Tier Average from 10/29/93 through 4/30/96.
Chart 4 - SEC Graph - Summit Limited-Term Bond Fund - A two-line graph showing
performance of a $10,000 investment in the Summit Limited-Term Bond Fund,
Lipper Short-Intermediate Investment-Grade Debt Funds Average, and the
Merrill-Lynch 1-5 Year Corporate/Government Index from 10/29/93 through
4/30/96.
Chart 5 - SEC Graph - Summit GNMA Fund - A two-line graph showing performance
of a $10,000 investment in the Summit GNMA Fund, the Lipper GNMA Funds
Average, and the Salomon GNMA Index from 10/29/93 through 4/30/96.
