Capital Appreciation Fund
As a leading investment management firm, T. Rowe Price has been able
to attract, retain, and develop high-quality investment professionals.
Over the years, our investors have been the beneficiaries. Consistent
with that approach, we are pleased to announce that Jeffrey W. Arricale
and David R. Giroux who have been part of the Capital Appreciation
Fund portfolio management team will most likely assume the positions
of co-chairman of the portfolio's Investment Advisory Committee and
portfolio co-managers on or about June 30, 2006, upon
Mr. Boesel's retirement.
In addition to the co-chairman, the Investment Advisory
Committee is comprised of the following members: Patrick Cassidy, Lewis
Johnson, David Lee, Brian Rogers, and David Wallack. We anticipate a
seamless transition in the management of the fund's portfolio. Steve
remains chairman of the Capital Appreciation Fund Advisory Committee
until his retirement.
"The Capital Appreciation Fund team that oversees your fund is a talented and
experienced group of investment professionals comprising research analysts,
fixed-income specialists, and senior portfolio managers, and I expect this
team to remain largely intact after the transition" Steve said recently.
We began preparing for this transition in 2004 by further involving Jeff
Arricale and David Giroux with the team's decision-making process. These
analysts were selected because they cover sectors with significant exposure
within our value portfolios (industrials, non-bank, and financials) and
have a track record of successful stock-picking.
Jeff Arricale joined T. Rowe Price in 2001, and serves as a research
analyst in the Equity Division following life insurance, asset managers,
and investment banks in the financial services industry. A member of
the Investment Advisory Committee of the Financial Services Fund, Equity
Income Fund, Value Fund, Capital Opportunity Fund, New America Growth
Fund, and Capital Appreciation Fund, Jeff earned a B.S. in Accountancy,
magna cum laude, from the University of San Diego and an M.B.A. from
the Wharton School of the University of Pennsylvania . Prior to joining
T. Rowe Price, he served as a manager in the auditing division of KPMG
L.L.P. He also holds a Certified Public Accountant designation in the
state of California .
David Giroux joined T. Rowe Price in 1998, and also is a research
analyst in the Equity Division following the automotive, electrical
equipment, industrial manufacturing, and building materials/products
industries. David is a member of the Investment Advisory Committee
of the Dividend Growth Fund, Value Fund, Capital Appreciation Fund,
Capital Opportunity Fund, Growth & Income Fund, and Equity Income
Fund. Prior to joining the firm, he worked as a commercial credit analyst
with Hillsdale National Bank. David earned a B.A. in Finance and Political
Economy with honors from Hillsdale College . He also has earned accreditation
as a Chartered Financial Analyst.
T. Rowe Price
Capital Appreciation Fund Prospectus Supplement 
Developing Technologies Fund
In accordance with T. Rowe Price's long-term policy of maximizing the
talent of its staff to ensure consistency in our investment strategies,
we are pleased to announce that as reported in the May 1, 2005 prospectus,
Jeffrey Rottinghaus will expand his responsibilities and become chairman
of the Developing Technologies Fund's investment advisory committee
effective July 1, 2005. As chairman, Jeff will replace Michael F. Sola
and assume primary responsibility for the day-to-day management of
the portfolio. The directors elected Jeff executive vice president
of the fund in April. Mike Sola will continue in his role as president
of the fund and will remain on the investment advisory committee along
with Kennard W. Allen, David J. Eiswert, Henry M. Ellenbogen, Robert
N. Gensler, Jill L. Hauser, Joshua K. Spenser, and Wenhua Zhang. Mike
also will continue as chairman of the investment advisory committee
of the Science & Technology Fund. We anticipate a seamless transition
in the management of the Fund's portfolio.
Jeff Rottinghaus joined T. Rowe Price in August 2001, after completing
his MBA at the Wharton School of the University of Pennsylvania. He
has done an excellent job as a technology analyst, where he focused
on semiconductor, semiconductor capital equipment, and software companies.
Jeff also has been working with John H. Laporte during the past year
on the New Horizons Fund and will continue to provide expertise for
the technology segment in its portfolio.
Global Stock Fund
Rob Gensler will become chairman of the advisory committee of Global
Stock Fund and will be the lead portfolio manager for the fund. We
believe that global mandates will be in great demand in coming years,
and Rob will lead a coordinated effort to leverage our growing resources.
We will also nominate Rob to become president of Global Stock Fund
at the mutual fund directors' meeting in April. As an analyst and portfolio
manager of Global Technology and Media & Telecommunications Funds,
Rob has done an outstanding job as a global investor. Since there is
significant overlap with his new role, Rob will continue as chairman
of the Investment Advisory Committee of Global Technology Fund with
responsibility for day-to-day management of the portfolio.
Global Stock Fund's advisory committee will include both regional and
sector experts. Dean Tenerelli, Campbell Gunn, Chris Alderson, and
Bob Smith will respectively contribute their European, Japanese, emerging
markets, and U.S. expertise to the committee. Kris Jenner, Charlie
Ober, and Mike Holton will contribute their experience in the health
care, natural resources, and financials sectors. Rob Gensler will round
out the committee with his background in global media and technology,
as well as his broader experience in the U.S. markets. He will remain
as president of the Media & Telecommunications Fund, although
(see below) he will hand off primary portfolio management responsibilities
to Rob Bartolo and Henry Ellenbogen.
World Ex-US Portfolios (International Stock Fund, Institutional
Foreign Equity Fund, and International Stock Portfolio)
Dean Tenerelli, who produced solid results as an analyst and European
portfolio manager, will return his focus to Europe. Dean has a total
of 14 years of investment experience and has been with T. Rowe Price
since 2000; he will join the team of Mark Bickford-Smith and David
Warren in running the world ex-U.S. portfolios. Mark will remain the
lead manager of the portfolios and will assume the role of chairman
of the advisory committees, and he will continue to focus on emerging
markets. David Warren will remain the president of the funds. He will
continue to focus on Japan, while Dean will head the European part
of the portfolios. Together, they will work on the portfolio as a whole,
with Mark leading the effort.
European Stock Fund
James Seddon will focus solely on European Stock Fund. Previously,
he shared his portfolio management responsibilities with Robert Revel-Chion,
who will step down from this role. James has a wealth of European fund
management experience going back more than 15 years and has developed
a long-term investment approach well suited to European markets.
Media & Telecommunications Fund
Rob Bartolo and Henry Ellenbogen will become co-chairmen of the Investment
Advisory Committee of Media & Telecommunications Fund, and they will
be nominated to become executive vice presidents of the fund at the
April meeting of mutual fund directors. As mentioned, Rob Gensler will
remain president of the fund and will advise Henry and Rob in their
new roles.
Henry Ellenbogen joined T. Rowe Price in April 2001 as a media and
Internet analyst. He graduated magna cum laude from Harvard College
and has a JD from Harvard Law and an MBA from Harvard Business School.
He previously worked for Goldman Sachs in risk arbitrage. Rob Bartolo
is a graduate of USC and earned his MBA from the Wharton School of
the University of Pennsylvania. Before joining T. Rowe Price in 2002,
he worked for Deloitte & Touche and was director of finance for MGM
Mirage.
Taken together, these are positive developments designed to strengthen
our international and global investment capabilities. We wish Rob,
Dean, James, and the others well in their new roles.
Please note: Share prices of international funds are subject to market
risk as well as risks associated with unfavorable currency exchange
rates and political or economic uncertainty abroad. Companies in the
media and telecommunications industries are subject to the risks of
rapid obsolescence, lack of investor or consumer acceptance, lack of
standardization or compatibility with existing technologies, an unfavorable
regulatory environment, intense competition, and a dependency on patent
and copyright protection.
We appreciate your continued business and partnership. If you have
any questions about this matter, please contact a T. Rowe Price Third
Party Distribution associate at 1-877-804-2308.
Click here to
download a prospectus.
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