Semiannual Report
Value Fund
June 30, 1996
T. Rowe Price
Report Highlights
o The equity market and your fund generated strong returns during the past
6- and 12-month periods, fueled by good earnings growth and favorable
investor sentiment.
o Fund returns exceeded the broad market and the benchmark for similar
funds, even though the overall market outperformed most value stocks
during the past six months.
o We favored stocks that had recently sold off and represented good value,
providing investors with the potential for capital appreciation over time.
o A significant portion of fund assets was invested in financial and
consumer stocks, and we also increased our exposure to the chemical and
paper sectors.
o The current economic climate is more challenging than it has been for some
time, but we expect to find attractive investments in most market
environments.
Fellow Shareholders
The equity market and your fund generated strong returns during the first half
of 1996. Continued good earnings growth and solid investor demand fueled the
advance. Individual investors provided a source of liquidity that contributed
significantly to the market's positive tone, which was particularly notable in
view of the weakness in the fixed income markets.
Performance Comparison
Periods Ended 6/30/96 6 Months 12 Months
_____________________________________________________________________________
Value Fund 13.83% 29.00%
S&P 500 10.10 26.00
Lipper Growth & Income
Funds Average 9.24 22.13
Your fund performed well in this positive environment, as shown in the table,
surpassing both the unmanaged Standard & Poor's 500 Stock Index and the Lipper
benchmark during both the 6- and 12-month periods ended June 30, 1996. We are
especially pleased to report that your fund's value-oriented investment approach
exceeded expectations due largely to individual stock selection.
First Half Distributions
On June 25, your Board of Directors declared a second quarter income dividend of
$0.09 per share, bringing your 1996 distributions to $0.13 per share. The second
quarter distribution was paid on June 27 to shareholders of record on June 25,
and you should already have received a check or statement reflecting it.
Portfolio Review
Our investment approach focuses on companies we believe are undervalued in terms
of price/earnings, price/cash flow, and price/book value ratios, private market
value, or some combination of these measures. We believe that undervalued
companies provide investors with attractive risk and return opportunities, and
historical evidence supports this view.
Despite the strong start for the equity market in 1996, we were still able to
identify stocks offering the desirable combination of reasonable upside
potential with, in our view, limited downside risk. The Major Portfolio
Changes table following this letter highlights some of the stocks we bought
and sold during the first six months of the year.
The common denominators among the largest purchases included attractive
valuations and a pattern of disappointing market performance in recent months
relative to other stocks. For example, FMC, Great Lakes Chemical, Exide, and
Philips N.V. had all sold off, creating excellent opportunities for possible
appreciation as other investors recognize their potential in the months ahead.
We prefer to invest in companies with below-average price/earnings and
price/cash flow ratios, and these purchases fit the bill perfectly. We also
made new investments in several insurance companies such as W.R. Berkley,
ACE, and USF&G, which represented good value, in our estimation.
Regarding large sales, we eliminated several companies, including two that were
taken over by other firms at significant profits for shareholders. Helene Curtis
Industries was acquired at a substantial premium to market value by Unilever,
and Nowsco Well Service rose sharply in response to a bid by BJ Services.
Most of our other sales were also successful investments whose share prices
had risen to levels where we felt there was limited upside potential.
Chart 1 - Sector Diversification
We were essentially fully invested in stocks at the end of June, with a large
exposure to the financial and consumer sectors. We also increased cyclical
exposure in the portfolio by buying several chemical and paper stocks. While we
manage the fund on a "bottom-up" basis, building the portfolio security by
security, we may be fairly heavily allocated in certain sectors if the companies
within them are sufficiently attractive.
Summary and Outlook
Shareholders have benefited from a nearly perfect investment environment for
stocks during the past 18 months, characterized by solid earnings growth, low
inflation, generally supportive interest rates, and enthusiastic investor
sentiment. The rise in interest rates during the first six months of 1996 has
clouded the picture to some extent, posing a challenge for further stock market
advances in the near term.
At this stage of the economic cycle, with GDP growing at a rate that has
triggered fears of accelerating inflation in some quarters, a correction in the
overall market would not be unexpected. However, in virtually any environment,
we expect to find attractive investments to make on your behalf.
As always, we appreciate your continued confidence and support.
Respectfully submitted,
Brian C. Rogers
President and Chairman of the Investment Advisory Committee
July 19, 1996
T. Rowe Price Value Fund
Portfolio Highlights
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
6/30/96
_____________________________________________________________________________
FMC 2.4%
Great Lakes Chemical 2.1
W.R. Berkley 1.7
Time Warner 1.6
Rayonier 1.6
Ace Limited 1.6
Exide 1.5
USF&G 1.5
Chris-Craft Industries 1.5
Harleysville Group 1.4
Mellon Bank 1.4
Reebok 1.4
Hohtamaki 1.4
McCormick 1.4
New York Times (Class A) 1.4
Philips N.V. 1.4
Dime Bancorp 1.3
Consolidated Papers 1.3
Union Texas Petroleum 1.3
Salomon 1.3
Conrail 1.3
National Presto 1.3
Allegheny Ludlum 1.3
Tomkins 1.2
Citizens Bancorp Maryland 1.2
_____________________________________________________________________________
Total 36.8%
T. Rowe Price Value Fund
Portfolio Highlights
MAJOR PORTFOLIO CHANGES
Listed in descending order of size
6 Months Ended 6/30/96
Ten Largest Purchases
_____________________________________________________________________________
FMC*
Great Lakes Chemical*
W.R. Berkley*
Exide*
ACE Limited*
Philips N.V.*
Time Warner
McCormick*
USF&G*
Consolidated Papers*
Ten Largest Sales
_____________________________________________________________________________
Helene Curtis Industries**
Nowsco Well Service**
FHP International**
Schuller**
Royal Carribean Cruises**
American Stores**
Helmerich & Payne**
Vodafone**
Unifi**
Tandy**
* Position Added
** Position Eliminated
T. Rowe Price Value Fund
Performance Comparison
This chart shows the value of a hypothetical $10,000 investment in the 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 2 - Value Fund
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
Periods Ended 6/30/96 1 Year Inception Date
_____________________________________________________________________________
Value Fund 29.00% 32.76% 09/30/94
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 Value Fund
Unaudited
Financial Highlights For a share outstanding throughout each period
6 Months Year 9/30/94
Ended Ended to
6/30/96 12/31/95 12/31/94
_____________________________________________________________________________
NET ASSET VALUE
Beginning of period $ 13.21 $ 10.24 $ 10.00
Investment activities
Net investment income 0.16* 0.27* 0.08*
Net realized and
unrealized gain (loss) 1.66 3.78 0.23
Total from
investment activities 1.82 4.05 0.31
Distributions
Net investment income (0.13) (0.26) (0.07)
Net realized gain (0.13) (0.82) (0.00)
Total distributions (0.26) (1.08) (0.07)
NET ASSET VALUE
End of period $ 14.77 $ 13.21 $ 10.24
Ratios/Supplemental Data
Total return 13.83%* 39.85%* 3.10%*
Ratio of expenses to
average net assets 1.10%!* 1.10%* 1.10%!*
Ratio of net investment
income to average
net assets 2.32%!* 2.03%* 3.16%!*
Portfolio turnover rate 66.5%! 89.7% 30.8%!
Average commission rate paid $0.0522 - -
Net assets, end of period
(in thousands) $120,647 $ 46,582 $ 8,850
* Excludes expenses in excess of a 1.10% voluntary expense limitation in effect
through 12/31/96.
! Annualized.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Value Fund
Unaudited June 30, 1996
Statement of Net Assets Shares/Par Value
In thousands
Common Stocks 95.2%
FINANCIAL 20.5%
Bank and Trust 8.7%
Bankers Trust New York 16,000 $ 1,182
Cal Fed Bancorp (Class A)* 40,000 730
California Federal Bank
Goodwill Certificates* 2,500 22
Citizens Bancorp Maryland 50,000 1,481
Dime Bancorp * 125,000 1,625
Greenpoint Financial 40,000 1,130
Mellon Bank 30,000 1,710
Provident Bankshares 17,850 591
Signet 50,000 1,162
U. S. Bancorp 25,000 902
_____________________________________________________________________________
10,535
Insurance 8.7%
ACE Limited ADR 40,000 1,880
Harleysville Group 60,000 1,740
Hilb, Rogal and Hamilton 31,700 440
PXRE 20,000 488
Travelers/Aetna Property Casualty
(Class A) * 20,000 568
UNUM 10,000 622
USF&G 110,000 1,801
W. R. Berkley 50,000 2,106
Willis-Corroon ADR 75,000 891
_____________________________________________________________________________
10,536
Financial Services 3.1%
American States Financial * 56,200 1,208
Associates First Capital * 25,000 941
Salomon 35,000 1,540
_____________________________________________________________________________
3,689
_____________________________________________________________________________
Total Financial 24,760
UTILITIES 4.5%
Telephone 0.4%
Telephone and Data Systems 10,000 450
_____________________________________________________________________________
450
Electric Utilities 4.1%
Centerior Energy 150,000 $ 1,106
Niagara Mohawk 25,000 194
Northeast Utilities 85,000 1,137
PECO Energy 55,000 1,430
Unicom 40,000 1,115
_____________________________________________________________________________
4,982
_____________________________________________________________________________
Total Utilities 5,432
CONSUMER NONDURABLES 13.6%
Beverages 0.8%
Brown-Forman (Class B) 25,000 1,000
_____________________________________________________________________________
1,000
Food Processing 2.7%
McCormick 75,000 1,650
Quaker Oats 30,000 1,024
Whitman 25,000 603
_____________________________________________________________________________
3,277
Pharmaceuticals 2.1%
Ciba-Geigy (CHF) 1,000 1,220
Genentech * 15,000 786
Perrigo * 40,000 452
_____________________________________________________________________________
2,458
Miscellaneous Consumer Products 8.0%
Allegheny Ludlum 80,000 1,510
Dial 35,000 1,002
National Presto 40,000 1,520
Philips N. V. ADR 50,000 1,631
Reebok 50,000 1,681
Seagram 25,000 841
Tomkins (GBP) * 400,000 1,497
_____________________________________________________________________________
9,682
_____________________________________________________________________________
Total Consumer Nondurables 16,417
CONSUMER SERVICES 13.7%
General Merchandisers 3.2%
Fred Meyer * 25,000 734
Hills Stores * 50,000 $ 444
Shopko Stores 85,000 1,370
Wal-Mart 50,000 1,269
_____________________________________________________________________________
3,817
Specialty Merchandisers 3.1%
Fleming Companies 50,000 719
Hancock Fabrics 35,000 385
Lillian Vernon 110,000 1,402
Norton McNaughton * 50,000 350
Revco * 40,000 955
_____________________________________________________________________________
3,811
Entertainment and Leisure 1.9%
Brinker * 36,200 543
Host Marriott * 40,000 525
Houghton Mifflin 25,000 1,244
_____________________________________________________________________________
2,312
Media and Communications 5.5%
Chris-Craft * 40,000 1,760
Comcast (Class A) 70,000 1,295
New York Times (Class A) 50,000 1,631
Time Warner 50,000 1,963
_____________________________________________________________________________
6,649
_____________________________________________________________________________
Total Consumer Services 16,589
CONSUMER CYCLICALS 6.4%
Automobiles and Related 1.2%
Federal-Mogul 40,000 735
ITT Industries 25,000 628
_____________________________________________________________________________
1,363
Building and Real Estate 1.5%
SECURITY CAPITAL PACIFIC TRUST, REIT 15,000 326
Simon Property Group, REIT 20,000 490
Skyline 25,000 625
South West Property Trust, REIT 30,000 401
_____________________________________________________________________________
1,842
Miscellaneous Consumer Durables 3.7%
Corning 14,000 537
Gencorp 60,000 $ 908
Huhtamaki (FIM) 50,000 1,673
Polaroid 30,000 1,369
_____________________________________________________________________________
4,487
_____________________________________________________________________________
Total Consumer Cyclicals 7,692
TECHNOLOGY 1.2%
Electronic Systems 0.5%
BW/IP (Class A) 30,000 574
_____________________________________________________________________________
574
Information Processing 0.3%
Apple Computer 20,000 419
_____________________________________________________________________________
419
Aerospace and Defense 0.4%
Lockheed Martin 5,000 420
_____________________________________________________________________________
420
_____________________________________________________________________________
Total Technology 1,413
CAPITAL EQUIPMENT 8.1%
Electrical Equipment 2.6%
ESCO Electronics * 65,000 739
Exide 75,000 1,819
Westinghouse 30,000 563
_____________________________________________________________________________
3,121
Machinery 5.5%
AMTROL 52,100 1,140
Coltec Industries * 90,000 1,282
Farrel 25,000 100
FMC * 45,000 2,936
TRINOVA 35,000 1,168
_____________________________________________________________________________
6,626
_____________________________________________________________________________
Total Capital Equipment 9,747
BUSINESS SERVICES AND
TRANSPORTATION 4.1%
Computer Service and Software 0.7%
Intuit * 17,000 799
_____________________________________________________________________________
799
Transportation Services 0.9%
Ryder System 40,000 $ 1,125
_____________________________________________________________________________
1,125
Railroads 2.5%
Canadian National Railway 35,000 643
Conrail 23,000 1,527
Illinois Central 30,000 851
_____________________________________________________________________________
3,021
_____________________________________________________________________________
Total Business Services and Transportation 4,945
ENERGY 4.3%
Integrated Petroleum - Domestic 3.3%
Amerada Hess 15,000 804
Atlantic Richfield 8,000 948
Union Texas Petroleum 80,000 1,560
USX-Marathon 30,000 604
_____________________________________________________________________________
3,916
Integrated Petroleum - International 1.0%
Repsol ADR 35,000 1,216
_____________________________________________________________________________
1,216
_____________________________________________________________________________
Total Energy 5,132
PROCESS INDUSTRIES 12.2%
Specialty Chemicals 4.6%
Crompton & Knowles 50,000 838
Georgia Gulf 35,000 1,024
Great Lakes Chemical 40,000 2,490
Petrolite 38,000 1,206
_____________________________________________________________________________
5,558
Paper and Paper Products 2.3%
Consolidated Papers 30,000 1,560
James River 45,000 1,187
_____________________________________________________________________________
2,747
Forest Products 5.3%
Boise Cascade 40,000 1,465
Georgia-Pacific 15,000 1,065
Louisiana Pacific 60,000 1,327
Potlatch 18,000 $ 704
Rayonier 50,000 1,900
_____________________________________________________________________________
6,461
_____________________________________________________________________________
Total Process Industries 14,766
BASIC MATERIALS 5.0%
Metals 4.0%
Cambior 100,000 1,337
Commercial Intertech 50,000 1,288
Lukens 40,000 955
Reynolds Metals 25,000 1,303
_____________________________________________________________________________
4,883
Mining 1.0%
Bougainville Copper (AUD) 300,000 142
Pegasus Gold * 40,000 490
Santa Fe Pacific Gold 40,000 565
_____________________________________________________________________________
1,197
_____________________________________________________________________________
Total Basic Materials 6,080
CONGLOMERATES 0.5%
LONRHO (GBP) 200,000 575
_____________________________________________________________________________
Total Conglomerates 575
_____________________________________________________________________________
Miscellaneous Common Stocks 1.1% 1,308
_____________________________________________________________________________
Total Common Stocks (Cost $109,184) 114,856
Convertible Preferred Stocks 0.6%
Mascotech, $1.20 50,000 750
_____________________________________________________________________________
Total Convertible Preferred Stocks (Cost $695) 750
Convertible Bonds 0.8%
Automatic Data Processing, LYONS,
Zero Coupon 2/20/12 $1,000,000 518
Liberty Property, 8.00%, 7/1/01 400,000 412
_____________________________________________________________________________
Total Convertible Bonds (Cost $847) 930
Short-Term Investments 5.6%
Commercial Paper 5.6%
Bell Atlantic Financial Services,
5.35%, 7/18/96 1,000,000 $ 997
Countrywide Funding, 5.35%, 7/9/96 2,000,000 1,998
CPC International, 4(2), 5.30%, 8/21/96 1,000,000 993
Investments in Commercial Paper through a
joint account, 5.49-.68%, 7/1/96 735,215 735
Preferred Receivables Funding,
5.40%, 7/10/96 2,000,000 1,997
_____________________________________________________________________________
Total Short-Term Investments (Cost $6,720) 6,720
Total Investments in Securities
102.2% of Net Assets (Cost $117,446) $123,256
_____________________________________________________________________________
Other Assets Less Liabilities (2,609)
_____________________________________________________________________________
NET ASSETS $120,647
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 267
Accumulated net realized gain/loss -
net of distributions 5,259
Net unrealized gain (loss) 5,810
Paid-in-capital applicable to 8,167,949 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares authorized 109,311
_____________________________________________________________________________
NET ASSETS $120,647
_____________________________________________________________________________
NET ASSET VALUE PER SHARE $ 14.77
_____________________________________________________________________________
* Non-income producing
REIT Real Estate Investment Trust
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."
AUD Australian dollar
CHF Swiss franc
FIM Finnish mark
GBP British sterling
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Value Fund
Unaudited
Statement of Operations
In thousands
6 Months
Ended
6/30/96
_____________________________________________________________________________
Investment Income
Income
Dividend $ 1,145
_____________________________________________________________________________
Interest 259
_____________________________________________________________________________
Total income 1,404
Expenses
Investment management 244
Shareholder servicing 95
Custody and accounting 50
Registration 31
Prospectus and shareholder reports 10
Legal and audit 9
Directors 4
Miscellaneous 7
_____________________________________________________________________________
Total expenses 450
_____________________________________________________________________________
Net investment income 954
_____________________________________________________________________________
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on
Securities 5,244
Foreign currency transactions (11)
_____________________________________________________________________________
Net realized gain (loss) 5,233
_____________________________________________________________________________
Change in net unrealized gain or loss on securities 2,283
_____________________________________________________________________________
Net realized and unrealized gain (loss) 7,516
_____________________________________________________________________________
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 8,470
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Value Fund
Unaudited
Statement of Changes in Net Assets
In thousands
6 Months Year
Ended Ended
06/30/96 12/31/95
_____________________________________________________________________________
Increase (Decrease) in Net Assets
Operations
Net investment income $ 954 $ 523
Net realized gain (loss) 5,233 3,375
Change in net unrealized gain or loss 2,283 3,452
_____________________________________________________________________________
Increase (decrease) in net assets
from operations 8,470 7,350
_____________________________________________________________________________
Distributions to shareholders
Net investment income (940) (572)
Net realized gain (687) (2,619)
_____________________________________________________________________________
Decrease in net assets from distributions (1,627) (3,191)
_____________________________________________________________________________
Capital share transactions*
Shares sold 80,307 39,440
Distributions reinvested 1,566 3,127
Shares redeemed (14,904) (9,076)
_____________________________________________________________________________
Increase (decrease) in net assets from
capital share transactions 66,969 33,491
_____________________________________________________________________________
Net equalization 253 82
_____________________________________________________________________________
Net Assets
Increase (decrease) during period 74,065 37,732
Beginning of period 46,582 8,850
_____________________________________________________________________________
End of period $ 120,647 $ 46,582
_____________________________________________________________________________
*Share information
Shares sold 5,570 3,153
Distributions reinvested 108 238
Shares redeemed (1,036) (729)
_____________________________________________________________________________
Increase (decrease) in shares outstanding 4,642 2,662
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Value Fund
Unaudited June 30, 1996
Notes to Financial Statements
Note 1 - Significant Accounting Policies
T. Rowe Price Value Fund, Inc. (the fund) is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company and
commenced operations on September 30, 1994.
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.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service.
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.
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.
Premiums and Discounts Premiums and discounts on debt securities are
amortized for both financial reporting and tax purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and distributions
to shareholders are recorded by the fund on the ex-dividend date. Income and
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. The fund follows the practice of equalization
under which undistributed net investment income per share is unaffected by fund
shares sold or redeemed.
Note 2 - Investment Transactions
Commercial Paper Joint Account The 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 fund's criteria as to
quality, yield, and liquidity.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $91,976,000 and $25,342,000, 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 $117,446,000, and net unrealized gain
aggregated $5,810,000, of which $8,644,000 related to appreciated investments
and $2,834,000 to depreciated investments.
Note 4 - Related Party Transactions
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $63,000 was payable at June 30, 1996. The fee is computed daily and
paid monthly, and consists of an individual fund fee equal to 0.35% of average
daily net assets and a group fee. The group fee is based on the combined assets
of certain mutual funds sponsored by the manager or Rowe Price-Fleming
International, Inc. (the group). The group fee rate ranges from 0.48% for the
first $1 billion of assets to 0.305% for assets in excess of $50 billion. At
June 30, 1996, and for the six months then ended, the effective annual group fee
rate was 0.33% and 0.34%, respectively. The fund pays a pro rata share of the
group fee based on the ratio of its net assets to those of the group.
Under the terms of the investment management agreement, the manager is required
to bear any expenses through December 31, 1996, which would cause the fund's
ratio of expenses to average net assets to exceed 1.10%. Thereafter, through
December 31, 1998, the fund is required to reimburse the manager for these
expenses, provided that average net assets have grown or expenses have declined
sufficiently to allow reimbursement without causing the fund's ratio of expenses
to average net assets to exceed 1.10%. Pursuant to this agreement, $34,000 of
management fees were not accrued by the fund for the six months ended June 30,
1996. Additionally, $202,000 of 1994-1995 unaccrued fees and expenses remain
subject to reimbursement through December 31, 1998.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and
maintains the financial records of the fund. T. Rowe Price Services, Inc.,
is the fund's transfer and dividend disbursing agent and provides shareholder
and administrative services to the fund. T. Rowe Price Retirement Plan
Services, Inc., provides subaccounting and recordkeeping services for certain
retirement accounts invested in the fund. The fund incurred expenses pursuant
to these related party agreements totaling approximately $102,000 for the six
months ended June 30, 1996, of which $13,000 was payable at period-end.
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. ET.
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 T.
Rowe Price OnLine.
Discount Brokerage*
Individual Securities Stocks, bonds, options, precious metals, and other
securities at a savings over regular commission rates.
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.
*T. Rowe Price Discount Brokerage is a division of T. Rowe Price Investment
Services, Inc. Member NASD/SIPC.
T. Rowe Price Mutual Funds
Stock Funds
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Balanced
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Dividend Growth
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Equity Index
Growth & Income
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New Era
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Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Government Bond
International Bond
Short-Term Global Income
Money Market
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
Blended Asset
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
T. Rowe Price No-Load Variable Annuity
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
*Closed to new investors.
For yield, price, last transaction, and current balance, 24 hours, 7 days a
week, call:
1-800-638-2587 toll free
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 Value Fund.
Invest With Confidence(registered trademark)
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor RPRTVAL 6/30/96
Chart 1 - Sector Diversification - pie chart showing Financial 21%, Consumer
Services 14%, Consumer Nondurables 14%, Process Industries 12%, Capital
Equipment 8%, Basic Materials 5%, Consumer Cyclicals 6%, and All Others 20%.
Chart 2 - Value Fund - A line chart showing the cumulative growth of $10,000
invested in the Value Fund from inception compared with $10,000 invested in a
broad-based index over the same period.
