Semiannual Report
June 30, 1997
Personal Strategy
Balanced Portfolio
Invest With Confidence(registered trademark)
T. Rowe Price
This report is authorized for distribution only to those who
have received a copy of the portfolio's prospectus.
T. Rowe Price Investment Services, Inc., Distributor
T. Rowe Price
Personal Strategy Balanced Portfolio
Semiannual Report
June 30, 1997
Dear Investor
The six months ended June 30, 1997, were particularly rewarding
for investors in large-capitalization stocks, while smaller-cap
investors experienced volatility but also realized solid
returns. The performance of high-quality bonds was generally
subdued as interest rates ended the period slightly higher than
they were at year-end. The Personal Strategy Balanced Portfolio,
with its reasonably high component of stocks, generated healthy
returns during both the last 6- and 12-month periods.
PERFORMANCE AND STRATEGY REVIEW
Performance Comparison
Periods Ended 6/30/97 6 Months 12 Months
_______________________________________________________
Personal Strategy
Balanced Portfolio 9.59% 20.19%
Combined Index Portfolio* 13.35 23.31
*An unmanaged portfolio composed of 60% stocks (S&P 500), 30%
bonds (Lehman Brothers Aggregate Bond Index), and 10% money
markets (90-day Treasury bills).
The objective of this fund is to provide the highest total
return consistent with an emphasis on both income and capital
appreciation. The typical asset mix is 60% stocks, 30% bonds,
and 10% cash-with 10-percentage-point variations permitted for
each asset class.
The rally in U.S. stocks helped the fund post solid absolute
returns, although it trailed its benchmark for the six-month
period. For the 12-month period, the fund also lagged primarily
because of an underweighting in equities compared with the
benchmark and a fairly heavy exposure to foreign stocks.
On June 30, your fund had 58% of its assets in stocks (the same
as at the end of last December), 39% in bonds (four percentage
points more than in December), and the remaining 3% in cash
reserves. We overweighted both investment-grade and high-yield
bonds and underweighted foreign bonds. Among domestic stocks,
our preference for growth over value stocks is reflected in our
top 10 stock holdings, which include Great Lakes Chemical, Dow
Chemical, and SBC Communications.
Asset Allocation
6/30/97
Stocks Bonds Money Markets
58% 39% 3%
On the international equities front, we maintained a high
exposure to foreign stocks, which unfortunately did not perform
as well as their domestic counterparts in U.S. currency terms
during the past six months. (The table following this letter
lists the fund's major holdings.) We increased our exposure to
foreign stocks during the past six months because we believe
they offer very good value at this time and provide good
diversification for the fund.
MARKET REVIEW
The fund's investment committee meets monthly to adjust the
weightings of stocks, bonds, and money market securities within
the appropriate ranges, based on market conditions and economic
fundamentals. The committee maintained its slightly defensive
posture with a lower-than-maximum allocation to stocks and
increased the fund's exposure to bonds. It continued to
overweight international and domestic growth stocks while
underweighting domestic value stocks. In the bond area, the
committee underweighted fund exposure to foreign bonds, while
slightly overweighting both high-yield (which have been
outperforming high-quality bonds) and investment-grade bonds.
The committee maintained a minimal position in cash equivalents.
Despite a setback in March, the stock market continued to
generate stellar returns. Large-cap stocks, measured by the
Standard & Poor's 500 Stock Index, returned 20.61% during the
past six months and 34.70% for the 12 months ended June 30. The
technology-laden Nasdaq Composite was less robust but still
strong, with returns of 11.70% and 21.69% for the respective
periods. Equities continued to be driven by a combination of
favorable factors, including solid economic growth accompanied
by tame inflation, and rising corporate profits.
Interest Rate Levels
<TABLE>
30-Year 5-Year 90-Day
Treasury Treasury Treasury
Bond Note Bill
<S> <C> <C> <C>
6/30/96 7.02 6.63 5.1
6.94 6.52 5.2
7.03 6.6 5.07
9/30 6.95 6.48 5.18
6.71 6.15 5.04
6.41 5.9 5.03
12/31 6.58 6.12 4.92
6.89 6.36 5.06
6.75 6.31 5.01
3/31 7 6.66 5.26
6.98 6.62 5.22
6.99 6.6 5.03
6/30/97 6.72 6.31 5.12
</TABLE>
The economy gained momentum in the first quarter of 1997.
Consumer spending was strong, sentiment high, and unemployment
fell below 5% to its lowest level in more than two decades. The
Federal Reserve, fearing a possibly overheating economy, raised
the federal funds rate in March from 5.25% to 5.50% in hopes of
restraining economic growth to a more sustainable pace. Bond
prices fell along with stocks initially but improved afterward
when investors realized inflation was still under control.
Longer-term interest rates rose in the spring, dampening the
returns of high-quality securities in particular, but then fell
sharply again in June.
Most international stock markets, with the exception of several
Asian countries, posted strong results in local currency terms;
however, the strength of the U.S. dollar versus many foreign
currencies trimmed results for U.S. investors. Major
international bond markets performed mostly in line with their
U.S. counterparts, while emerging market bonds once again
generated stellar returns.
OUTLOOK
Strong economic growth motivated the Federal Reserve to raise
the federal funds rate in March. Since then, the Fed has held
rates steady, possibly anticipating slower growth ahead. The
bond market has stabilized with the 30-year Treasury bond yield
around 6.5%. The possibility remains that the Fed will tighten
further, but we do not expect a significant shift in bond yields
from current levels. The domestic stock market continued to
climb through the end of June, and even with the labor market as
tight as it has been, corporations have yet to experience the
higher labor costs that could hurt earnings.
Although we believe many stocks are highly valued, the domestic
market appears on track to generate solid returns for the year.
However, once again we would like to caution investors that
there could well be significant corrections along the way.
Overseas, world economies continue to recover, and Japan seems
to have emerged from its long period of stagnation. A possible
postponement of EMU or an easing of the financial restraints
required for membership could bolster growth in some European
economies. Overall, we expect international markets to provide
sound investment opportunities in coming months.
Your fund is carefully diversified, which should serve investors
well over time. We anticipate a continuation of the favorable
environment for stocks and bonds and will look for opportunities
to increase our equity exposure when valuations appear more
reasonable, in our view.
As always, we thank you for your ongoing support.
Respectfully submitted,
Peter Van Dyke
President and
Chairman of the Investment Advisory Committee
July 25, 1997
Portfolio Highlights
Portfolio Overview
Percent of
Net Assets
6/30/97
Money Market Securities 3.1%
_____________________________________________________
Commercial Paper 2.8
Other Assets Less Liabilities 0.3
Bonds 39.3%
_____________________________________________________
U.S. Government Agencies 6.1
Corporate 19.2
Mortgage-Backed 10.9
Foreign Government Agencies 3.1
Stocks 57.6%
_____________________________________________________
10 Largest Holdings 8.5%
SPDR Trust 2.4
Great Lakes Chemical 0.8
Dow Chemical 0.8
St. Paul Companies 0.7
Corning 0.7
SBC Communications 0.7
Travelers Property Casualty 0.6
Philip Morris 0.6
GE 0.6
Delta 0.6
_____________________________________________________
T. Rowe Price Personal Strategy Balanced Portfolio
June 30, 1997 (Unaudited)
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.
Performance Comparison - Personal Strategy Balanced Portfolio
As of 6/30/97
<TABLE>
<CAPTION>
Personal Strategy Combined
Balanced Portfolio Index Portfolio*
<S> <C> <C>
12/31/94 $ 10,000 $ 10,000
6/95 11,587 11,573
6/96 13,399 13,590
6/97 16,103 16,733
</TABLE>
*60% S&P 500, 30% Lehman Brothers Aggregate Bond Index, 10% 90-day Treasury
bills.
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.
Personal Strategy Balanced Portfolio
Periods Ended 6/30/97
Since Inception
1 Year Inception Date
_____________________________________________________
20.19% 21.02% 12/30/94
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
Total returns do not include charges imposed by your insurance company's
separate account. If these were included, performance would have been lower.
Financial Highlights
T. Rowe Price Personal Strategy Balanced Portfolio
(Unaudited)
For a share outstanding throughout each period
________________________________________________________
6 Months Year 12/30/94
Ended Ended through
6/30/97 12/31/96 12/31/95
NET ASSET VALUE
Beginning of period $ 13.44 $ 12.43 $ 10.00
Investment activities
Net investment income 0.23 0.41 0.42
Net realized and
unrealized gain (loss) 1.05 1.32 2.41
Total from
investment activities 1.28 1.73 2.83
Distributions
Net investment income (0.22) (0.41) (0.40)
Net realized gain (0.02) (0.31) -
Total distributions (0.24) (0.72) (0.40)
NET ASSET VALUE
End of period $ 14.48 $ 13.44 $ 12.43
Ratios/Supplemental Data
Total return 9.59% 14.21% 28.66%
Ratio of expenses to
average net assets 0.90%! 0.90% 0.90%
Ratio of net investment
income to average
net assets 3.56%! 3.33% 3.69%
Portfolio turnover rate 26.1%! 51.7% 39.3%
Average commission
rate paid $ 0.0337 $ 0.0394 -
Net assets, end of period
(in thousands) $ 48,756 $ 33,263 $ 5,625
! Annualized.
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price Personal Strategy Balanced Portfolio
June 30, 1997 (Unaudited)
Shares/Par Value
In thousands
Common Stocks 57.6%
FINANCIAL 11.2%
Bank and Trust 5.1%
Abbey National (GBP) 6,500 $ 89
ABN Amro Holdings (NLG) 3,600 67
Air Liquide (L) (FRF) 420 67
Australia & New Zealand
Banking ADR 700 26
BANC ONE 1,700 82
Banca Commerciale
Italiana (ITL) 10,000 21
Banco de Bilbao
Vizcaya ADR 800 65
Banco Frances del Rio
de la Plata ADR 1,495 49
BankBoston 800 58
Barclay's (GBP) 4,000 79
Chase Manhattan 1,780 173
Citicorp 900 109
Deutsche Bank (DEM) 800 46
Development Bank of
Singapore (SGD) 2,000 25
Dresdner Bank AG (DEM) 1,700 59
Great Western Financial 5,100 274
HSBC Holdings (GBP) 5,400 166
J. P. Morgan 800 83
KeyCorp 900 50
Kredietbank (BEF) 100 40
Mellon Bank 5,040 227
National City 1,500 79
NationsBank 1,000 64
Norwest 2,400 135
Overseas Chinese
Bank (SGD) 3,600 37
Schweizerischer Bankverein
(CHF)* 240 64
Societe Generale (FRF) 500 56
Societe Generale
New (FRF) * 13 1
Societe Generale de
Belgique (BEF) 200 19
Svenska Handelsbank (SEK) 1,000 32
Union Bank of
Switzerland (CHF) 70 80
Wells Fargo 200 54
Westpac Bank (AUD) 4,000 24
2,500
Insurance 3.0%
ACE Limited 1,900 140
American General 2,000 95
American International
Group 500 75
CKAG Colonia
Konzern (DEM) 300 28
EXEL 1,300 69
Mid Ocean Limited 1,900 100
St. Paul Companies 4,300 328
Sumitomo Marine
& Fire (JPY) 9,000 74
Travelers Property
Casualty (Class A) 7,800 311
UNUM 2,940 123
Willis-Corroon ADR 10,500 117
1,460
Financial Services 3.1%
American Express 2,550 190
AXA (FRF) 1,000 62
DCB Holdings (MYR) 7,000 22
Fannie Mae 4,020 175
Freddie Mac 4,380 151
Green Tree Financial 1,400 50
H&R Block 9,000 290
Household International 600 71
ING Groep (NLG) 1,650 76
Mercury Finance 9,800 24
Money Store 2,800 80
Pearson (GBP) 3,000 35
Sallie Mae 830 105
Travelers Group 2,466 156
1,487
Total Financial 5,447
UTILITIES 4.0%
Telephone Services 2.6%
ALLTEL 1,200 40
AT&T 6,220 218
BellSouth 2,500 116
British Telecommunications
ADR 900 67
Compania de Telecomunicaciones
de Chile ADR 425 $ 14
Frontier 7,800 156
Hong Kong Telecommunications
ADR 1,100 26
SBC Communications 5,160 319
Sprint 500 26
Telecom Corp. of New
Zealand ADR 800 33
Telecom Italia (ITL) 15,000 48
Telecom Italia Mobile (ITL) 15,000 48
Telefonica de Espana ADR 800 69
Telekom Malaysia (MYR) 3,000 14
Telmex ADR 1,000 48
1,242
Electric Utilities 1.4%
Centerior Energy 5,700 64
Electrabel (BEF) 200 43
Empresa Nacional de
Electricidad ADR 500 43
Empresa Nacional de Electricidad
de Chile ADR 500 11
Entergy 1,370 37
Hong Kong Electric (HKD) 6,000 24
Niagara Mohawk * 5,900 50
Ohio Edison 5,300 116
PECO Energy 4,200 88
Texas Utilities 840 29
Unicom 5,600 125
Veba (DEM) 1,300 73
703
Total Utilities 1,945
CONSUMER NONDURABLES 11.5%
Cosmetics 0.6%
Gillette 300 28
International Flavors &
Fragrances 3,200 162
Kao (JPY) 6,000 83
273
Beverages 0.5%
Coca-Cola 160 11
LVMH (FRF) 100 27
PepsiCo 6,100 229
267
Food Processing 2.3%
Cadbury Schweppes (GBP) 900 $ 8
Cadbury Schweppes ADR 500 18
CPC International 1,600 148
CSM (NLG) 1,000 50
Danisco (DKK) 900 55
Eridania Beghin-Say (FRF) 400 60
General Mills 1,230 80
Heinz 2,900 134
Interstate Bakeries 900 53
McCormick 4,100 104
Nabisco Holdings (Class A) 1,600 64
Nestle (CHF) 60 79
Ralston Purina 1,180 97
Sara Lee 3,930 164
1,114
Hospital Supplies/
Hospital Management 1.0%
Baxter International 860 45
Boston Scientific * 1,300 80
Columbia/HCA Healthcare 2,110 83
HealthSouth * 2,900 72
Medtronic 1,000 81
Quest Diagnostics * 475 10
St. Jude Medical * 800 31
Vencor * 2,200 93
495
Pharmaceuticals 3.5%
American Home Products 2,240 171
Amgen 600 35
Astra (Series B) (SEK) 1,333 23
Bristol-Myers Squibb 580 47
Eli Lilly 1,100 120
Gehe (DEM) 700 48
Glaxo Wellcome ADR 1,400 59
Johnson & Johnson 2,080 134
Merck 1,400 145
Novartis (CHF) 26 42
Pfizer 2,320 277
Pharmacia & Upjohn 3,117 108
Schering-Plough 2,000 96
SmithKline Beecham ADR 1,860 170
Takeda Chemical
Industries (JPY) 5,000 140
Warner-Lambert 600 75
1,690
Health Care Services 0.3%
Altana (DEM) 60 $ 64
PacifiCare Health Systems
(Class B) * 600 38
United HealthCare 900 47
149
Miscellaneous Consumer
Products 3.3%
Benetton Group (ITL) 2,080 33
Bridgestone (JPY) 3,000 70
Colgate-Palmolive 1,840 120
CUC International * 3,400 88
Grand Metropolitan ADR 1,300 51
Jones Apparel Group * 900 43
Kuraray (JPY) 6,000 60
Lion Nathan (NZD) 8,000 20
Mattel 3,100 105
Newell 1,500 59
NIKE 100 6
Philip Morris 6,780 301
Procter & Gamble 700 99
Richfood Holdings 2,000 52
Service Corp. 2,200 72
Stanley Works 1,500 60
Tambrands 2,320 116
Unilever N.V. ADR 400 87
UST 6,230 173
1,615
Total Consumer Nondurables 5,603
CONSUMER SERVICES 5.6%
General Merchandisers 1.2%
Dayton Hudson 1,500 80
Marui (JPY) 2,000 37
Neiman Marcus Group * 800 21
Pinault Printemps (FRF) 200 96
Tesco (GBP) 10,053 62
TJX 2,200 58
Wal-Mart 4,600 156
Warnaco Group (Class A) 3,400 108
618
Specialty Merchandisers 1.7%
American Stores 1,100 54
Christian Dior (FRF) 400 66
Circuit City Stores 500 18
CVS 1,414 $ 72
Federated Department
Stores * 2,000 70
General Nutrition * 2,900 81
Home Depot 1,100 76
Kohl's * 1,300 69
McKesson 400 31
Safeway * 1,900 88
The Gap 600 23
Toys "R" Us * 5,100 178
826
Entertainment and Leisure 1.7%
Carnival (Class A) 2,200 91
Disney 1,570 126
Hutchison Whampoa (HKD) 20,000 173
ITT * 1,900 116
McDonald's 1,670 81
Reader's Digest (Class B) 7,720 214
Sharp (JPY) 2,000 27
828
Media and Communications 1.0%
Elsevier (NLG) 2,000 33
R. R. Donnelly 3,400 125
Time Warner 1,600 77
Tribune 1,500 72
U S WEST Media * 3,800 77
Vodafone ADR 1,840 89
473
Total Consumer Services 2,745
CONSUMER CYCLICALS 3.1%
Automobiles and Related 0.6%
Cycle & Carriage (SGD) 4,000 42
Honda ADR 1,500 90
Lear * 500 22
Lucasvarity ADR 2,084 72
SPX 1,200 78
304
Building and Real Estate 0.9%
Cheung Kong
Holdings (HKD) 12,000 118
City Developments (SGD) 5,000 49
DBS Land (SGD) 5,000 16
Federal Realty Investment
Trust, REIT 4,100 111
Patriot American
Hospitality, REIT 600 $ 15
Simon DeBartolo
Group, REIT 2,996 96
Starwood Lodging, REIT 1,000 43
448
Miscellaneous Consumer
Durables 1.6%
Corning 5,800 323
Eastman Kodak 1,200 92
Masco 1,200 50
Oce Van Der
Grinten NV (NLG) 300 39
Ricoh (JPY) 4,000 52
Sony (JPY) 1,000 87
Whirlpool 2,500 136
779
Total Consumer Cyclicals 1,531
TECHNOLOGY 3.8%
Electronic Components 0.7%
Altera * 700 36
Intel 800 113
Linear Technology 800 41
Maxim Integrated Products * 1,100 63
Motorola 700 53
Xilinx * 1,000 49
355
Electronic Systems 0.6%
ADT * 2,300 76
Hewlett-Packard 900 50
Honeywell 1,700 129
Nokia ADR 800 59
314
Information Processing 0.7%
COMPAQ Computer * 600 60
Dell Computer * 200 24
Hitachi ADR 800 90
IBM 2,020 182
356
Aerospace and Defense 0.8%
AlliedSignal 2,420 203
Boeing 1,900 101
Lockheed Martin 700 72
376
Telecommunications
Equipment 1.0%
3Com * 800 $ 36
Cisco Systems * 1,400 94
LM Ericsson (Class B) ADR 1,200 47
Lucent Technologies 600 43
MCI 1,400 54
Telecomunicacoes
Brasileiras ADR 700 106
Tellabs * 300 17
World Com 2,000 64
461
Total Technology 1,862
CAPITAL EQUIPMENT 2.6%
Electrical Equipment 1.7%
ABB (CHF) 50 76
Canon (JPY) 3,000 82
Emerson Electric 800 44
GE 4,560 298
Hubbell (Class B) 2,300 101
Matsushita Electric
Works (JPY) 3,000 34
Mitsubishi Electric (JPY) 7,000 39
Siemens (DEM) 500 30
Tomkins ADR 2,000 36
Tyco International 1,200 83
823
Machinery 0.9%
Danaher 2,200 112
GKN (GBP) 2,500 43
Man (DEM) 200 61
S I G Schweis (CHF) 20 61
Teleflex 3,600 112
Valmet (FIM) 2,000 35
424
Total Capital Equipment 1,247
BUSINESS SERVICES AND TRANSPORTATION 4.3%
Computer Service and Software 2.1%
Ascend Communications * 800 31
Automatic Data Processing 1,940 91
BMC Software * 2,400 133
Electronic Data Systems 6,600 271
First Data 3,634 $ 160
Microsoft * 660 83
National Data 1,300 56
Oracle * 1,500 76
Parametric Technology * 700 30
SunGard Data Systems * 1,500 70
Synopsys * 900 33
1,034
Distribution Services 0.1%
Ikon Office Solutions 1,540 39
39
Environmental 0.1%
USA Waste Services * 1,300 50
50
Transportation Services 0.1%
Mitsubishi Heavy
Industries (JPY) 6,000 46
United Engineers (MYR) 4,000 29
75
Miscellaneous Business
Services 0.9%
BAA (GBP) 5,200 48
Corporate Express * 3,050 44
Omnicom 400 24
Sime Darby (MYR) 6,000 20
Wallace Computer Services 900 27
Waste Management 7,900 254
417
Airlines 0.9%
AMR * 920 85
Delta 3,600 295
KLM Royal Dutch
Airlines ADR 900 28
Singapore Airlines (SGD) 3,000 27
435
Railroads 0.1%
Burlington Northern
Santa Fe 600 54
54
Total Business Services
and Transportation 2,104
ENERGY 3.2%
Energy Services 0.8%
BJ Services * 800 43
Camco International 900 $ 49
Cooper Cameron * 1,400 66
ELF Aquitaine ADR 400 22
Halliburton 1,000 79
Schlumberger 690 86
Total ADR 1,000 51
396
Integrated Petroleum -
Domestic 1.1%
Atlantic Richfield 2,360 166
British Petroleum ADR 3,040 228
Unocal 830 32
USX-Marathon 4,460 129
555
Integrated Petroleum -
International 1.2%
ENI S.P.A. ADR 1,000 57
Exxon 820 50
Mobil 2,560 179
Repsol ADR 900 38
Royal Dutch Petroleum ADR 1,200 65
Shell Transport &
Trading ADR 600 76
Texaco 1,070 116
581
Exploration and Production 0.1%
Santos (AUD) 9,000 38
38
Total Energy 1,570
PROCESS INDUSTRIES 4.6%
Diversified Chemicals 1.3%
Dow Chemical 4,200 366
DuPont 2,200 138
Hercules 1,400 67
Monsanto 1,000 43
614
Specialty Chemicals 2.2%
3M 570 58
A. Schulman 5,000 124
Akzo Nobel (NLG) 400 55
BASF (DEM) 2,200 81
Bayer (DEM) 1,500 58
Great Lakes Chemical 7,550 395
Pall 7,600 177
Sigma Aldrich 200 $ 7
Sumitomo Chemical (JPY) 7,000 32
Technip (FRF) 700 81
1,068
Paper and Paper Products 0.7%
Dai Nippon Printing (JPY) 3,000 68
James River 3,000 111
Kimberly-Clark 3,800 189
368
Forest Products 0.2%
Georgia-Pacific 370 32
International Paper 1,700 82
114
Building and Construction 0.2%
Blue Circle Industries (GBP) 12,000 86
86
Total Process Industries 2,250
BASIC MATERIALS 1.2%
Metals 0.7%
Alcoa 580 44
Nucor 1,000 56
Reynolds Metals 2,500 178
Rustenburg Platinum (ZAR) 3,000 55
333
Mining 0.3%
LONRHO (GBP) 18,000 38
Newmont Mining 1,700 67
Rio Tinto (AUD) 2,000 34
139
Miscellaneous Materials 0.2%
Crown Cork & Seal 1,300 69
Malayan Cement (MYR) 12,500 21
90
Total Basic Materials 562
MISCELLANEOUS 2.5%
Conglomerates 0.1%
Orkla (Class A) (NOK) 500 37
37
Other Miscellaneous 2.4%
SPDR Trust 13,300 1,174
1,174
Total Miscellaneous 1,211
Total Common Stocks (Cost $23,167) 28,077
Corporate Bonds 19.2%
Agricultural Minerals and
Chemicals, Sr. Notes
10.75%, 9/30/03 $ 50,000 $ 54
Agrium, 7.00%, 2/1/04 100,000 100
Allied Waste North America
Sr. Sub. Notes, (144a)
10.25%, 12/1/06 75,000 80
AMC Entertainment
Sr. Sub. Notes, (144a)
9.50%, 3/15/09 75,000 78
American Radio Systems
Sr. Sub. Notes
9.00%, 2/1/06 100,000 102
American Safety Razor
Sr. Notes
9.875%, 8/1/05 25,000 27
American Standard, Deb.
9.25%, 12/1/16 75,000 79
Amerigas Partners L.P.
Sr. Notes
10.125%, 4/15/07 50,000 53
BE Aerospace, Sr. Sub. Notes
9.875%, 2/1/06 50,000 53
BF Saul, REIT
Sr. Secured Notes
11.625%, 4/1/02 160,000 170
Boeing, 6.35%, 6/15/03 30,000 29
Boise Cascade, Deb.
7.35%, 2/1/16 210,000 197
Building Material Corporation
of America, Sr. Disc.
Notes, STEP, Zero
Coupon, 7/1/04 50,000 45
BWAY, Sr. Sub. Notes (144a)
10.25%, 4/15/07 70,000 75
Celestica International
Sr. Sub. Notes, (144a)
10.50%, 12/31/06 50,000 54
Chancellor Radio Broadcasting
Sr. Sub. Notes
9.375%, 10/1/04 50,000 51
Chief Auto Parts, Sr. Notes
10.50%, 5/15/05 75,000 75
Citicorp, Sub. Notes
7.75%, 6/15/06 $ 50,000 $ 52
Coach USA, Gtd. Sr. Sub.
Notes (144a)
9.375%, 7/1/07 50,000 50
Coca-Cola Bottling
Sr. Sub. Notes
9.00%, 11/15/03 50,000 52
Coinmach, Sr. Notes
11.75%, 11/15/05 50,000 55
Commonwealth Edison, Deb.
6.40%, 10/15/05 75,000 70
Communications & Power
Industries
Sr. Sub. Notes
12.00%, 8/1/05 50,000 56
Consolidated Cigar
Sr. Sub. Notes
10.50%, 3/1/03 25,000 26
Container Corporation of America
Gtd., Sr. Notes
10.75%, 5/1/02 25,000 27
Sr. Notes
9.75%, 4/1/03 50,000 53
Continental Airlines, PTC
6.94%, 10/15/13 196,078 192
Cyprus Amax Minerals
6.625%, 10/15/05 100,000 96
Dan River, Sr. Sub. Notes
10.125%, 12/15/03 100,000 106
Delta Air Lines, MTN
8.625%, 6/15/04 60,000 64
Doane Products, Sr. Notes
10.625%, 3/1/06 75,000 80
Dominion Textile USA
Gtd. Sr. Notes
9.25%, 4/1/06 50,000 52
Dr. Pepper Bottling Holdings
Sr. Disc. Notes
STEP, Zero Coupon
2/15/03 75,000 75
Dual Drilling, Sr. Sub. Notes
9.875%, 1/15/04 50,000 53
Dyncorp, Sr. Sub. Notes, (144a)
9.50%, 3/1/07 $ 75,000 $ 76
El Paso Electric, 1st Mtg. Notes
8.90%, 2/1/06 25,000 27
Energy Corporation of America
Sr. Sub. Notes, (144a)
9.50%, 5/15/07 100,000 101
Enhance Financial Services, Deb.
6.75%, 3/1/03 200,000 195
Fairchild Semiconductor
Sr. Sub. Notes, (144a)
10.125%, 3/15/07 75,000 79
Fairfax Financial Holdings
8.25%, 10/1/15 250,000 257
Ferrellgas, Sr. Notes
10.00%, 8/1/01 50,000 53
First Federal Financial
11.75%, 10/1/04 50,000 54
First USA Bank, Sr. Notes
5.85%, 2/22/01 200,000 194
Frontiervision Operating Partners
Sr. Sub. Notes
11.00%, 10/15/06 50,000 52
Fundy Cable, Sr. Notes
11.00%, 11/15/05 50,000 54
Gaylord Container, Sr. Sub. Deb.
12.75%, 5/15/05 50,000 55
GMAC, 7.125%, 6/1/99 25,000 25
Grand Casinos, 1st Mtg. Notes
10.125%, 12/1/03 50,000 52
Grand Metropolitan
Investment, Gtd.
9.00%, 8/15/11 200,000 231
Hawk, Sr. Notes, (144a)
10.25%, 12/1/03 50,000 52
Haynes International, Sr. Notes
11.625%, 9/1/04 50,000 55
Herff Jones, Sr. Sub. Notes
11.00%, 8/15/05 25,000 27
HMC Acquisition Properties
Sr. Notes
9.00%, 12/15/07 25,000 25
Host Marriott Travel Plazas
Sr. Notes
9.50%, 5/15/05 50,000 52
International Wire Group
Sr. Sub. Notes, (144a)
11.75%, 6/1/05 $ 75,000 $ 81
Intertek Finance
Sr. Sub. Notes,
10.25%, 11/1/06 50,000 52
Jordan Industries, Sr. Notes
10.375%, 8/1/03 50,000 53
K & F Industries, Sr. Sub. Notes
10.375%, 9/1/04 50,000 53
Keebler, Sr. Sub. Notes
10.75%, 7/1/06 50,000 56
Kelley Oil & Gas, Sr. Sub. Notes
10.375%, 10/15/06 75,000 77
Lenfest Communications
Sr. Notes
8.375%, 11/1/05 20,000 20
Loomis, Fargo & Co.
Sr. Sub. Notes, (144a)
10.00%, 1/15/04 75,000 75
Lucent Technologies
7.25%, 7/15/06 200,000 204
Maxxam Group Holdings
Sr. Notes
11.25%, 8/1/03 50,000 52
May Department Stores
Gtd. Deb. Notes
8.30%, 7/15/26 500,000 514
MBW Foods, Sr. Sub.
Notes, (144a)
9.875%, 2/15/07 100,000 101
Mettler Toledo
Gtd. Sr. Sub. Notes
9.75%, 10/1/06 50,000 53
Northrop Grumman
7.00%, 3/1/06 200,000 197
Ocwen Financial
11.875%, 10/1/03 50,000 54
Owens & Minor, Sub. Notes
10.875%, 6/1/06 25,000 28
Pennsylvania Power and Light
1st Mtg. Notes
6.50%, 4/1/05 50,000 48
Pillowtex, Gtd. Sr. Sub. Notes
10.00%, 11/15/06 50,000 53
Plastic Containers
Sr. Notes, (144a)
10.00%, 12/15/06 $ 75,000 $ 78
Pride Petroleum Services
Sr. Notes
9.375%, 5/1/07 75,000 78
Prime Hospitality, Sr. Sub.
Notes, (144a)
9.75%, 4/1/07 25,000 26
Provident Capital Trust I
Gtd. Bonds
8.60%, 12/1/26 200,000 196
Public Service Electric & Gas
1st Mtg. Notes
7.00%, 9/1/24 200,000 185
Mtg. Bonds
8.875%, 6/1/03 100,000 109
Quest Diagnostic
Gtd. Sr. Sub. Notes
10.75%, 12/15/06 75,000 82
Revlon Consumer Products
Sr. Sub. Notes
10.50%, 2/15/03 50,000 53
Rio Hotel & Casino, Gtd.
Sr. Sub. Notes, (144a)
9.50%, 4/15/07 75,000 77
Rowan Companies, Sr. Notes
11.875%, 12/1/01 19,000 20
Safelite Glass
Sr. Sub. Notes, (144a)
9.875%, 12/15/06 50,000 54
Safeway, Sr. Sub. Deb.
9.875%, 3/15/07 10,000 12
Scotland International Finance
Sub. Notes, (144a)
6.50%, 2/15/11 100,000 92
Silgan, Sr. Sub. Notes
11.75%, 6/15/02 50,000 53
Six Flags Theme Parks
Sr. Sub. Disc. Notes
STEP, Zero Coupon
6/15/05 125,000 129
Specialty Retailers
Gtd. Sr. Notes, (144a)
8.50%, 7/15/05 75,000 75
Sprint Spectrum, Sr. Notes
11.00%, 8/15/06 $ 50,000 $ 55
Synthetic Industries
Sr. Sub. Notes, (144a)
9.25%, 2/15/07 50,000 51
Tele-Communications, Deb.
8.75%, 2/15/23 100,000 100
Teleport Communications
Sr. Notes
9.875%, 7/1/06 50,000 53
TeleWest, Sr. Disc. Deb.
STEP, Zero Coupon
10/1/07 75,000 54
Tenet Healthcare, Sr. Sub. Notes
8.625%, 1/15/07 50,000 51
Texas Utilities, 1st Mtg. Bonds
7.875%, 4/1/24 100,000 100
Time Warner Entertainment,
Deb.
8.375%, 3/15/23 75,000 77
TLC Beatrice International
Holdings, Sr. Notes
11.50%, 10/1/05 50,000 56
Tokheim, Sr. Sub. Notes
11.50%, 8/1/06 25,000 27
Trump Atlantic City Associates
1st Mtg. Notes
11.25%, 5/1/06 75,000 73
United Artists Theatre Circuit
PTC, (144a)
9.30%, 7/1/15 49,157 48
US Can, Sr. Gtd. Notes
10.125%, 10/15/06 50,000 53
USF&G Capital II, Gtd. Notes
8.47%, 1/10/27 900,000 904
Viasystems, Sr. Sub. Notes, (144a)
9.75%, 6/1/07 75,000 76
Wal-Mart Stores, Deb.
7.25%, 6/1/13 150,000 151
Westpoint Stevens
Sr. Sub. Deb.Notes
9.375%, 12/15/05 75,000 78
Windy Hill Pet Food
Sr. Sub. Notes, (144a)
9.75%, 5/15/07 75,000 75
Total Corporate Bonds (Cost $9,257) 9,369
Foreign Government Obligations/Agencies 3.1%
European Investment Bank
3.00%, 9/20/06 JPY 40,000,000 $ 364
4.625%, 2/26/03 JPY 20,000,000 198
Federal Republic of Germany
6.00%, 7/4/07 DEM 330,000 194
6.50%, 7/15/03 DEM 50,000 31
8.375%, 5/21/01 DEM 145,000 95
Government of Canada
8.50%, 4/1/02 CAD 147,000 119
Government of France
5.50%, 4/25/07 FRF 1,140,000 193
8.50%, 11/25/02 FRF 492,000 99
Government of Japan
4.50%, 6/20/03 JPY 4,000,000 39
Republic of Italy
8.50%, 8/1/04 ITL 40,000,000 26
United Kingdom
Treasury Notes
7.50%, 12/7/06 GBP 64,000 110
8.00%, 6/10/03 GBP 31,000 54
8.50%, 12/7/05 GBP 10,000 18
Total Foreign Government
Obligations/Agencies (Cost $1,535) 1,540
U.S. Government Mortgage-
Backed Securities 10.9%
Federal National Mortgage Assn.
6.50%, 1/1/26 $ 285,795 274
Government National Mortgage Assn.
I
6.00%,
1/15/24 - 4/15/26 948,001 886
6.50%
4/15/24 - 4/15/26 1,925,087 1,849
7.00%
5/15/23 - 3/15/27 1,139,830 1,121
7.50%
5/15/24 - 11/15/25 470,804 475
8.00%
10/15/25 - 6/15/26 580,182 595
8.50%, 12/15/24 84,579 89
11.50%, 11/15/19 24,318 28
Total U.S. Government Mortgage-Backed
Securities (Cost $5,260) 5,317
U.S. Government Obligations/Agencies 6.1%
Cooperative Utility Trust
9.50%, 2/15/17 $ 100,000 $ 106
Tennessee Valley Authority
5.98%, 4/1/36 500,000 504
6.235%, 7/15/45 1,000,000 997
7.25%, 7/15/43 200,000 193
8.25%, 4/15/42 160,000 175
U.S. Treasury Bonds
6.75%, 8/15/26 1,000,000 990
Total U.S. Government
Obligations/Agencies (Cost $2,959) 2,965
Short-Term Investments 2.8%
Commercial Paper 2.8%
Investments in Commercial
Paper through a Joint
Account, 6.05 - 6.20%
7/1/97 1,351,472 1,351
Total Short-Term Investments
(Cost $1,351) 1,351
Total Investments in Securities
99.7% of Net Assets (Cost $43,529) $ 48,619
Other Assets Less Liabilities 137
NET ASSETS $ 48,756
__________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 25
Accumulated net realized gain/loss -
net of distributions 250
Net unrealized gain (loss) 5,090
Paid-in-capital applicable to
3,366,230 shares of $0.0001
value capital stock par
outstanding; 1,000,000,000
shares of the corporation
authorized 43,391
NET ASSETS $ 48,756
__________
NET ASSET VALUE PER SHARE $ 14.48
__________
* Non-income producing
MTN Medium term note
PTC Pass-through Certificate
REIT Real Estate Investment Trust
STEP Stepped Coupon Bond
144a Security was purchased pursuant to Rule 144a under the
Securities Act of 1933 and may not be resold subject to that
rule except to qualified institutional buyers- total of such
securities at period-end amounts to 3.19% of net assets.
AUD Australian dollar
BEF Belgian franc
CAD Canadian dollar
CHF Swiss franc
DEM German deutschemark
DKK Danish krone
FIM Finnish mark
FRF French franc
GBP British sterling
HKD Hong Kong dollar
ITL Italian lira
JPY Japanese yen
MYR Malaysian ringgit
NLG Dutch guilder
NOK Norwegian krone
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
ZAR South African rand
L Local registered shares
The accompanying notes are an integral part of these financial statements.
Statement of Operations
T. Rowe Price Personal Strategy Balanced Portfolio
(Unaudited)
In thousands
6 Months
Ended
6/30/97
Investment Income
Income
Interest $ 646
Dividend 250
Total income 896
Expenses
Investment management and
administrative 181
Net investment income 715
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 250
Foreign currency transactions (5)
Net realized gain (loss) 245
Change in net unrealized gain or loss
on securities 2,986
Net realized and unrealized gain (loss) 3,231
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 3,946
_________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price Personal Strategy Balanced Portfolio
(Unaudited)
In thousands
6 Months Year
Ended Ended
6/30/97 12/31/96
Increase (Decrease) in Net Assets
Operations
Net investment income $ 715 $ 596
Net realized gain (loss) 245 671
Change in net unrealized
gain or loss 2,986 1,592
Increase (decrease) in net
assets from operations 3,946 2,859
Distributions to shareholders
Net investment income (690) (679)
Net realized gain (58) (584)
Decrease in net assets from
distributions (748) (1,263)
Capital share transactions*
Shares sold 15,018 29,528
Distributions reinvested 748 1,263
Shares redeemed (3,471) (4,849)
Increase (decrease) in net
assets from capital
share transactions 12,295 25,942
Net equalization - 100
Net Assets
Increase (decrease) during
period 15,493 27,638
Beginning of period 33,263 5,625
End of period $ 48,756 $ 33,263
________________________
*Share information
Shares sold 1,090 2,308
Distributions reinvested 53 96
Shares redeemed (252) (382)
Increase (decrease) in shares
outstanding 891 2,022
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price Personal Strategy Balanced Portfolio
June 30, 1997 (Unaudited)
Note 1 - Significant Accounting Policies
T. Rowe Price Equity Series, Inc. (the corporation) is registered under the
Investment Company Act of 1940. The Personal Strategy Balanced Portfolio (the
fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on
December 30, 1994. The shares of the fund are currently being offered only
to separate accounts of certain insurance companies as an investment medium
for both variable annuity contracts and variable life insurance policies.
Valuation Equity securities are valued at the last quoted sales price on the
day 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 not traded on a
particular day and securities regularly traded in the over-the-counter market
are valued at the mean of the latest bid and asked prices.
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 amortized 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, 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. 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. Effective January 1, 1997, the fund
discontinued its practice of equalization. The results of operations and net
assets were not affected by this change.
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 and
U.S. government securities, aggregated $14,055,000 and $4,880,000,
respectively, for the six months ended June 30, 1997. Purchases and sales of
U.S. government securities aggregated $3,950,000 and $79,000, respectively,
for the six months ended June 30, 1997.
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, 1997, the aggregate cost of investments for federal income tax
and financial reporting purposes was $43,529,000, and net unrealized gain
aggregated $5,090,000, of which $5,567,000 related to appreciated investments
and $477,000 to depreciated investments.
Note 4 - Related Party Transactions
The investment management and administrative agreement between the fund and
T. Rowe Price Associates, Inc. (the manager) provides for an all-inclusive
annual fee, of which $21,000 was payable at June 30, 1997. The fee, computed
daily and paid monthly, is equal to 0.90% of the fund's average daily net
assets. Pursuant to the agreement, investment management, shareholder
servicing, transfer agency, accounting, and custody services are provided to
the fund, and interest, taxes, brokerage commissions, and extraordinary
expenses are paid directly by the fund.
During the six months ended June 30, 1997, the fund, in the ordinary course
of business, placed security purchase and sale orders aggregating $398,000
with certain affiliates of the manager and paid commissions of $1,000 related
thereto.
Invest With Confidence(registered trademark)
T. Rowe Price
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to those who have received
a copy of the portfolio's prospectus.
T. Rowe Price Investment Services, Inc., Distributor
TRP655 (6/97)
K15-058 6/30/97
