T. Rowe Price
Limited-Term Bond Portfolio
Semiannual Report
June 30, 1997
Dear Investor
The bond market fluctuated over the last six months as the
economy accelerated sharply, then settled into a slower-growth
pattern. Seeking to preempt a rise in inflation, the Federal
Reserve raised the key federal funds target in March for the
first time in two years. Interest rates rose through most of the
half-year before retreating toward the end of the period when no
clear evidence of rising inflation emerged.
MARKET ENVIRONMENT
The economy grew at a vigorous annualized rate of 4.9% in the
first quarter of 1997, well above its average pace during the
current six-year expansion. Consumers kept the cash registers
ringing for such items as automobiles, major appliances, and
furniture. With jobs being created at a rapid clip, the civilian
unemployment rate dropped to 4.9% in the second quarter, its
lowest level in more than two decades. Wishing to head off a
potential rise in the inflation rate, the Federal Reserve acted
to slow economic growth by lifting the federal funds target a
quarter-point in March to 5.5%.
Interest Rate Levels chart
<TABLE>
<CAPTION>
GNMA 5-Year Treasury 2-Yr Treasury
<S> <C> <C> <C>
6/30/96 7.98 6.63 6.25
7.71 6.52 6.17
7.99 6.6 6.22
9/96 7.7 6.48 6.12
7.48 6.15 5.81
7.18 5.9 5.65
12/96 7.6 6.12 5.84
7.56 6.36 6.03
7.56 6.31 6.01
3/97 7.91 6.66 6.36
7.66 6.62 6.33
7.68 6.6 6.29
6/30/97 7.43 6.31 6.01
</TABLE>
As shown in the chart, the Fed's move capped a period of rising
rates (and falling bond prices) that depressed bond market
returns in the first three months of 1997. The climate changed
quickly in the second quarter, however, when new data strongly
suggested that inflation was under control. In particular, the
employment cost index, arguably the best measure of total
compensation because it includes both wages and benefits,
continued to rise at an acceptable level of just under 3%. As
the period closed, the economy displayed a nearly ideal
combination of moderate growth and low inflation. Rates fell
back, and bond market returns picked up.
PERFORMANCE AND STRATEGY REVIEW
The fund slightly lagged its competitor funds over the last six
months, posting a modest return as income was partially offset
by a $0.02 decline in share price. Over the 12 months ended June
30, the fund produced a solid return, outpacing its peer group
largely as a result of its slightly higher yield.
Performance Comparison
Periods Ended 6/30/97 6 Months 12 Months
______________________________________________________________
___
Limited-Term Bond Portfolio 2.56% 6.48%
Lipper Variable Annuity
Underlying Short Intermediate
Investment-Grade
Debt Funds Average 2.64 6.10
At the time of our last report to you in December, we had moved
the fund's effective duration to 2.8 years, a somewhat defensive
stance given the late-1996 decline in interest rates. (Duration
is a more accurate measure than maturity of a fund's price
sensitivity to changes in interest rates. Shortening duration
cushions declines in the fund's share price when interest rates
rise.) This move proved appropriate as interest rates generally
rose in the early part of the year but was insufficient to allow
the fund to outperform its average peer. Rates have trended down
since the end of March. However, given the continued risk of
tightening by the Fed, duration was still a cautious 2.6 years
as of June 30.
We maintained sizable allocations in corporate and
mortgage-backed securities at the expense of lower-yielding U.S.
Treasury obligations. Together with cash equivalents and
asset-backed securities, corporates and mortgage-backed issues
accounted for about 87% of fund assets. (See table following
this letter.) We trimmed mortgages modestly after a first
quarter rally decreased their yield advantage compared with
Treasury issues. Nevertheless, we are still attracted to their
combination of high credit quality and above-Treasury yields.
Mortgages represented 25% of fund assets, an overweighting
compared with the fund's Lipper peer group.
We continued to own a wide selection of high-quality corporate
issues. Economic fundamentals are in excellent shape, and there
are few clouds on the horizon to threaten corporate earnings.
Overall, our corporate exposure (excluding cash equivalents)
represented 57% of assets on June 30. We increased our holdings
in numerous sectors, notably in finance and credit, media and
communications, and consumer products, after issues became
available at attractive prices. Conversely, we began to trim our
position in asset-backed securities after strong performance
boosted their prices.
Security Diversification
Percent of Percent of
Net Assets Net Assets
12/31/96 6/30/97
______________________________________________________________
__________
Mortgages 29% 25%
U.S. Treasury Obligations 21 12
Banking 10 11
Utilities 8 8
Industrial 8 7
Finance and Credit 3 6
Transportation 3 6
Commercial Paper 5 5
Media and Communications - 4
Consumer Products 2 4
Asset-Backed 4 3
U.S. Government Agency 1 3
Insurance 1 2
All Other 6 6
Other Assets Less Liabilities - 1 - 2
______________________________________________________________
__________
Total 100% 100%
In light of our favorable outlook for the economy and corporate operating
conditions, we increased our holdings in lower-tier investment-grade bonds
and also purchased a handful of noninvestment-grade holdings, which have been
performing well. Currently, 6% of the fund is in noninvestment-grade issues
rated BB, whose high yields provide the fund with attractive income at a time
when major credit problems are relatively unlikely. Nonetheless, the fund
continued to maintain a high level of overall credit quality, with more than
75% of assets invested in issues rated A or higher.
OUTLOOK
Additional tightening of monetary policy is possible, but increasingly
unlikely as long as the economy maintains its not-too-fast, not-too-slow
pace. Although the absence of an inflation threat makes it easier for the Fed
to take a hands-off approach, the central bankers remain wary of the
potential inflationary impact of strong growth in consumer demand. If the
economy picks up again in the third quarter, credit markets could be roiled
by a higher federal funds rate, and other market interest rates may also inch
upward.
Nonetheless, the prospects look good for continued moderate growth with
inflation remaining under control. Bonds should do well in this environment.
Respectfully submitted,
Edward A. Wiese
President and
Chairman of the Investment Advisory Committee
July 31, 1997
Portfolio Highlights
Key Statistics
Periods
Ended
6/30/97
________________________________________________________
Dividend Yield*
6 months 6.03%
12 months 6.04
Dividend Per Share
6 months $ 0.14
12 months 0.29
Change in Price Per Share
6 months (from $4.93 to $4.91) $ - 0.02
12 months (from $4.89 to $4.91) 0.02
Weighted Average Maturity (years) 3.6
Weighted Average Effective
Duration (years) 2.6
__________________________________________________________
*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.
Quality Diversification
Percent of Percent of
Net Assets Net Assets
12/31/96 6/30/97
________________________________________________________________________
Quality Rating*
AAA 55% 43%
AA 6 7
A 27 27
BBB 12 17
BB - 6
B - -
________________________________________________________________________
Weighted Average Quality AA AA-
________________________________________________________________________
*Based on T. Rowe Price research.
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
as of 6/30/97
<TABLE>
<CAPTION>
Merrill Lynch
T. Rowe Price 1-5 Year
Limited-Term Corporate/Government
Bond Portfolio Bond Index
<S> <C> <C>
5/13/94 $ 10,000 $ 10,000
6/94 10,046 10,079
6/95 10,814 10,975
6/96 11,215 11,558
6/97 11,941 12,349
</TABLE>
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.
Limited-Term Bond Portfolio
Periods Ended 6/30/97
Since Inception
1 Year 3 Years Inception Date
________________________________________________________________________
6.48% 5.93% 5.83% 5/13/94
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 Limited-Term Bond Portfolio
(Unaudited)
For a share outstanding throughout each period
___________________________________________________
6 Months Year 5/13/94
Ended Ended through
6/30/97 12/31/96 12/31/95 12/31/94
NET ASSET VALUE
Beginning of period$ 4.93 $ 5.06 $ 4.92 $ 5.00
Investment activities
Net investment
income 0.14 0.29 0.33 0.21
Net realized and
unrealized gain
(loss) (0.02) (0.13) 0.14 (0.08)
Total from
investment
activities 0.12 0.16 0.47 0.13
Distributions
Net investment
income (0.14) (0.29) (0.33) (0.21)
NET ASSET VALUE
End of period $ 4.91 $ 4.93 $ 5.06 $ 4.92
_________________________________________________
Ratios/Supplemental Data
Total return 2.56% 3.26% 9.88% 2.62%
Ratio of expenses to
average net assets 0.70%! 0.70% 0.70% 0.70%!
Ratio of net investment
income to average
net assets 5.96%! 5.83% 6.60% 6.63%!
Portfolio turnover rate76.3%! 97.7% 73.7% 146.0%!
Net assets, end of
period
(in thousands) $ 15,859 $ 12,312 $ 3,966 $ 2,081
! Annualized.
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price Limited-Term Bond Portfolio
June 30, 1997 (Unaudited)
Shares/Par Value
In thousands
CORPORATE BONDS AND NOTES 54.0%
Banking 11.4%
Banco Latinoamericano, (144a)
6.97%, 10/16/00 $ 100 $ 100
Bankers Trust of New York, Deb.
9.50%, 6/14/00 150 161
Barnett Banks, Sub. Notes
8.50%, 3/1/99 75 78
Chase Manhattan, Sub. Notes
8.00%, 4/15/02 35 35
First Hawaiian, Sub. Notes
6.25%, 8/15/00 100 98
First Union, Sub. Notes
9.45%, 6/15/99 100 105
First USA Bank, MTN
7.00%, 8/20/01 150 150
Firstar, Sub. Notes
7.15%, 9/1/00 15 15
HSBC Finance Nederland
Sub. Gtd. Notes, (144a)
7.40%, 4/15/03 80 81
Kansallis Osake Pankki (New York)
Sub. Notes
10.00%, 5/1/02 100 112
Keycorp, (144a)
6.625%, 6/15/29 175 179
Mercantile Safe Deposit & Trust
6.53%, 7/3/00 200 200
Midlantic, Deb.
9.25%, 9/1/99 100 105
National City Capital Trust, (144a)
6.75%, 6/1/99 150 151
Republic of New York, Deb.
8.875%, 2/15/01 110 118
Union Planters, Sub. Notes
6.25%, 11/1/03 135 129
1,817
Consumer Products 3.8%
Anheuser Busch, Deb.
8.75%, 12/1/99 100 105
Coca Cola Femsa
8.95%, 11/1/06 125 127
Grand Metropolitan Investment
Gtd. Notes
6.50%, 9/15/99 100 100
Philip Morris
7.25%, 9/15/01 $ 150 $ 151
RJR Nabisco, MTN
8.625%, 12/1/02 120 124
607
Consumer Services 0.8%
Tenet Healthcare
Sr. Sub. Notes
8.625%, 1/15/07 125 128
128
Energy 1.1%
MCN Financing, (144a)
6.305%, 6/1/37 175 175
175
Finance and Credit 6.0%
American Express Credit, Deb.
8.50%, 6/15/99 100 104
American General Finance
Sr. Notes
5.875%, 7/1/00 125 122
Aristar, Sr. Notes
7.875%, 2/15/99 50 51
Contifinancial, Sr. Notes
7.50%, 3/15/02 150 150
Finova Capital, MTN
5.98%, 2/27/01 150 147
Fleet Mortgage
6.50%, 9/15/99 125 125
Heller Financial
5.625%, 3/15/00 100 98
Penske Truck Leasing, MTN
6.65%, 11/1/00 150 150
947
Industrials 7.1%
Alcan Aluminum Ltd., Deb.
5.875%, 4/1/00 130 128
Corning, Deb.
8.75%, 7/15/99 100 104
Cyprus Minerals, Deb.
10.125%, 4/1/02 150 169
Eaton Off Shore Ltd.
Gtd. Notes
9.00%, 2/15/01 100 106
General Motors Acceptance
Corporation, MTN
6.625%, 4/24/00 100 100
International Paper, Deb.
9.70%, 3/15/00 $ 100 $ 107
Lockheed, Deb.
9.375%, 10/15/99 15 16
Lockheed Martin, Gtd. Notes
6.55%, 5/15/99 85 85
Northrop Grumman
8.625%, 10/15/04 200 217
WMX Technologies
7.125%, 6/15/01 100 101
1,133
Insurance 2.2%
American Annuity Group
Capital Trust, (144a)
7.25%, 9/25/01 145 146
Chubb, Deb.
8.75%, 11/15/99 75 77
USF&G, Sr. Notes
7.00%, 5/15/98 125 126
349
Investment Dealers 0.6%
Lehman Brothers, MTN
6.75%, 5/24/99 100 101
101
Media and Communications 4.4%
Lucent Technologies
6.90%, 7/15/01 100 101
NWCG Holdings
Sr. Secured Disc. Notes
Zero Coupon, 6/15/99 150 132
TCI Communications, Sr. Notes
8.65%, 9/15/04 200 211
Time Warner, 7.95%, 2/1/00 100 103
Viacom, Gtd. Notes
6.75%, 1/15/03 150 144
691
Petroleum 1.3%
Occidental Petroleum, MTN
5.85%, 11/9/98 25 25
PDV America
Sr. Notes
7.25%, 8/1/98 75 75
7.875%, 8/1/03 100 101
201
Retail 1.8%
Dayton Hudson
7.50%, 3/1/99 $ 100 $ 102
Rite Aid, 6.70%, 12/15/01 75 74
Sears Roebuck & Co., MTN
8.23%, 5/4/99 100 103
279
Transportation 5.7%
Burlington Northern
7.40%, 5/15/99 75 76
CSX, Deb., 9.50%, 8/1/00 150 162
Delta Air Lines, Deb.
9.875%, 5/15/00 100 108
Federal Express
6.25%, 4/15/98 97 97
Norfolk Southern
7.875%, 2/15/04 170 178
Northwest Airlines, Gtd. Notes
8.375%, 3/15/04 150 151
Qantas Airways Ltd.
Sr. Notes, (144a)
7.50%, 6/30/03 75 77
Union Pacific
7.00%, 6/15/00 50 50
899
Utilities 7.8%
Baltimore Gas & Electric
1st Mtg. Notes
8.40%, 10/15/99 100 104
Cleveland Electric, (144a)
7.19%, 7/1/00 150 151
Consumers Energy
1st Mtg. Bonds
6.875%, 5/1/98 15 15
Houston Lighting & Power
MTN
6.10%, 3/1/00 125 124
Long Island Lighting
Gen. Ref. Bonds
9.75%, 5/1/21 150 152
MCI Communications, Sr. Notes
7.125%, 1/20/00 100 101
Midamerican Energy, MTN
6.50%, 12/15/01 100 99
Orange & Rockland Utilities
Deb., 6.14%, 3/1/00 $ 50 $ 49
Pacific Gas & Electric
1st Mtg. Bonds
8.75%, 1/1/01 50 53
Progress Capital Holdings
MTN, (144a)
6.88%, 8/1/01 150 149
Public Service Electric & Gas
1st Ref. Mtg. Bonds
6.25%, 1/1/07 75 70
System Energy Resources
1st Mtg. Notes
7.625%, 4/1/99 175 178
1,245
Total Corporate Bonds and Notes
(Cost $8,560) 8,572
ASSET-BACKED SECURITIES 3.5%
Auto-Backed 1.3%
Banc One Auto Grantor Trust
6.27%, 11/20/03 200 200
200
Home Equity Loans-Backed 0.6%
Access Financial Mortgage Loan Trust
6.90%, 5/18/11 100 100
100
Receivables-Backed 1.6%
Green Tree Financial
8.35%, 3/15/20 100 103
Harley Davidson Eaglemark
6.35%, 10/15/02 50 50
Yamaha Motor Master Trust
6.20%, 5/15/03 100 99
252
Total Asset-Backed Securities (Cost $550) 552
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 24.7%
U.S. Government Agency Obligations 19.9%
Federal Home Loan Mortgage
5 year balloon
5.00%, 6/1/99 103 101
6.00%, 4/1/99 35 35
7 year balloon
6.50%, 12/1/99 $ 264 $ 265
7.00%, 5/1/99 134 135
REMIC
5.40%, 10/15/12 200 198
5.50%, 6/15/13 250 249
6.50%, 1/15/17 200 201
6.75%, 10/15/03 250 250
6.92%, 1/25/12 120 120
7.00%, 3/15/08 69 70
Federal National Mortgage Assn.
7.00%, 4/1/09 456 457
9.00%, 5/1/05 539 552
REMIC
5.35%, 9/25/02 250 248
6.50%, 5/25/04 240 241
7.50%, 8/25/05 40 40
3,162
U.S. Government Guaranteed Obligations 4.8%
Government National Mortgage Assn.
I
10.00%
11/15/09 - 4/15/19 116 128
Midget, I
6.50%, 5/15/09 540 536
10.00%
11/15/00 - 2/15/01 48 51
10.50%
4/15/98 - 6/15/99 38 39
754
Total U.S. Government Mortgage-
Backed Securities (Cost $3,899) 3,916
U.S. GOVERNMENT OBLIGATIONS 14.9%
U.S. Government Agency Obligations 3.3%
Federal Home Loan Mortgage
6.725%, 8/15/00 30 30
Federal National Mortgage Assn.
7.30%, 7/10/02 250 250
Deb., 6.15%, 12/14/01 150 147
MTN, 7.65%, 10/6/06 100 100
527
U.S. Treasury Obligations 11.6%
U.S. Treasury Notes
6.375%, 5/15/99 $ 400 $ 402
6.50%
8/31/01 - 10/15/06 1,225 1,227
6.875%, 3/31/00 200 203
1,832
Total U.S. Government Obligations
(Cost $2,349) 2,359
MUNICIPAL BONDS 0.1%
Taxable Municipal 0.1%
University of Miami, GO
6.90%, 4/1/04 25 25
Total Municipal Bonds (Cost $25) 25
WARRANTS 0.0%
President Casinos
Warrants !*# 1 0
Total Warrants (Cost $1) 0
COMMERCIAL PAPER 4.7%
Investments in Commercial Paper
through a Joint Account
6.05 - 6.20%, 7/1/97 740 740
Total Commercial Paper (Cost $740) 740
Total Investments in Securities
101.9% of Net Assets (Cost $16,124) $ 16,164
Other Assets Less Liabilities (305)
NET ASSETS $ 15,859
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ (22)
Accumulated net realized gain/loss -
net of distributions (119)
Net unrealized gain (loss) 40
Paid-in-capital applicable to 3,231,664
shares of $0.0001 value capital stock par
outstanding; 1,000,000,000 shares of the
Corporation authorized 15,960
NET ASSETS $ 15,859
___________
NET ASSET VALUE PER SHARE $ 4.91
___________
! Private Placement
* Non-income producing
# Securities contain some restrictions as to public resale.
GO General Obligation
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
VR Variable Rate
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
year-end amounts to 7.6% of net assets.
Statement of Operations
T. Rowe Price Limited-Term Bond Portfolio
(Unaudited)
In thousands
Six months
Ended
6/30/97
Investment Income
Income
Interest $ 432
Expenses
Investment management and administrative 45
Net investment income 387
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on securities (49)
Change in net unrealized gain or loss on securities 15
Net realized and unrealized gain (loss) (34)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 353
___________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets
T. Rowe Price Limited-Term Bond Portfolio
(Unaudited)
In thousands
Six months Year
Ended Ended
6/30/97 12/31/96
Increase (Decrease) in Net Assets
Operations
Net investment income $ 387 $ 477
Net realized gain (loss) (49) (78)
Change in net unrealized gain or loss 15 (29)
Increase (decrease) in net assets
from operations 353 370
Distributions to shareholders
Net investment income (387) (477)
Capital share transactions*
Shares sold 6,703 15,053
Distributions reinvested 385 477
Shares redeemed (3,507) (7,077)
Increase (decrease) in net assets
from capital share transactions 3,581 8,453
Net Assets
Increase (decrease) during period 3,547 8,346
Beginning of period 12,312 3,966
End of period $ 15,859 $ 12,312
________________________
*Share information
Shares sold 1,369 3,056
Distributions reinvested 79 97
Shares redeemed (715) (1,438)
Increase (decrease) in shares outstanding733 1,715
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price Limited-Term Bond Portfolio
June 30, 1997 (Unaudited)
Note 1 - Significant Accounting Policies
T. Rowe Price Fixed Income Series, Inc. (the corporation) is registered under
the Investment Company Act of 1940. The Limited-Term Bond Portfolio (the
fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on May 13,
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 Debt securities are generally traded in the over-the-counter
market. 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 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. Warrants
are valued at the last bid price.
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.
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 the fund on the ex-dividend date. Income and capital gain
distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles.
Note 2 - Investment Transactions
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 $6,194,000 and $2,647,000,
respectively, for the six months ended June 30, 1997. Purchases and sales of
U.S. government securities aggregated $2,272,000 and $2,176,000,
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. The fund has an unused realized capital loss carryforward
for federal income tax purposes of $70,000, which expires in 2004. The fund
intends to retain gains realized in future periods that may be offset by
available capital loss carryforwards.
At June 30, 1997, the aggregate cost of investments for federal income tax
and financial reporting purposes was $16,124,000, and net unrealized gain
aggregated $40,000, of which $83,000 related to appreciated investments and
$43,000 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, computed daily and paid monthly, equal to 0.70% 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.
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
TRP656 (6/97)
K15-059 6/30/97
