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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 Personal
Strategy Funds.
Invest With Confidence
T. Rowe Price
PSF
SemiAnnual Report
T. Rowe Price Personal Strategy Funds
November 30, 1995
Fellow Shareholders
The U.S. stock market reached record levels during the six months ended
November 30. Corporate earnings continued to grow and Treasury yields fell to
their lowest levels in more than two years, resulting in solid returns for
your funds. Since stocks outperformed bonds, returns for the Personal Strategy
Growth Fund with its high component of equities were strongest. The Balanced
and Income Funds followed in that order.
The funds' investment committee meets monthly to adjust the weightings
of stocks, bonds, and money market securities within the appropriate ranges
for each fund, based on market conditions and economic fundamentals. The
committee has maintained a strategy of overweighting bonds in each fund
because of relatively high stock valuations, while keeping cash equivalents
close to minimum levels. Actual allocations on November 30 are shown in the
Performance and Strategy Review section of this report.
Market Review
The economy slowed from 1994's robust pace to an annualized rate of 1.3% in
the second quarter of 1995. Although GDP growth increased to 4.2% in the third
quarter, we view this as an anomaly of sorts. We expect economic growth to be
closer to its historical trend between 2.0% and 2.5% in the final quarter of
the year. Unemployment reached 5.8% in April, and has since improved to 5.5%.
The slowing economy along with relatively benign inflation resulted in
falling interest rates over the past six months. The 30-year Treasury bond
yield fell from 6.67% on May 31 to 6.14% at the end of November - about two
percentage points below its level this time last year. Shorter-term rates also
declined, although not to the same extent.
Stocks generated exceptional returns during the past 12 months. The
unmanaged Standard & Poor's 500 Stock Index registered a total return of 14.9%
over the last six months and 37% for the 12 months ended November 30. The
Nasdaq Composite Index, which tracks smaller-company
Chart 1 - Interest Rate Levels
stocks primarily, posted returns of 22.5% and 41.2%, respectively, for the
same periods. International stocks fared less well overall, as most foreign
markets trailed the U.S.
Bonds also enjoyed powerful returns. The Lehman Brothers Aggregate Bond
Index rose 5.6% during the past six months and 17.6% during the 12-month
period. High-yield securities lagged investment-grade bonds. The U.S. dollar
gained ground against most major currencies, diminishing returns for U.S.
investors in foreign bonds. Your funds' holdings in various sectors of the
fixed income and equity markets are shown in the Portfolio Overview section
following this letter.
Performance and Strategy Review
Personal Strategy Income Fund
This fund's investment goal is to generate the highest total return consistent
with an emphasis on income first and capital appreciation second. The typical
mix of securities for the fund is 40% bonds, 40% stocks, and 20% money market
securities, although percentages can vary by as much as 10% above or below
these levels.
On November 30, the mix of securities was little changed from the end of
our last reporting period in May. We remained overweighted in bonds at 50% of
the portfolio, and slightly underweighted in stocks at 38%, with the remaining
12% in money market securities. Among bonds, we maintained our emphasis on
high-quality issues, which outperformed higher-yielding, lower-quality
securities. We also kept the fund's duration (a measure of price sensitivity
to changes in interest rates) long relative to the benchmark in anticipation
of rising prices and falling yields, and lowered exposure to non-U.S. dollar
issues further to soften the impact of the strengthening dollar against key
foreign currencies.
Chart 2 - Asset Allocation - Personal Strategy Income Fund
We continued to prefer growth over value stocks, since the former
usually do better when the economy is slowing, and the top 10 equity holdings
are unchanged from last May. Fund performance was outstanding during both the
6 and 12 months ended November 30, matching the benchmark during the shorter
period and lagging it slightly over the year because of our lower exposure to
stocks.
Performance Comparison
Periods Ended 11/30/95
6 Months 12 Months
________ _________
Personal Strategy Income Fund 9.29% 24.14%
Combined Index Portfolio* 9.27 25.10
* An unmanaged portfolio composed of 40% stocks (S&P 500) and 60% bonds
(Lehman Brothers Aggregate Bond Index).
Personal Strategy Balanced Fund
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% variations permitted for
each asset class. This asset allocation structure offers higher risk but also
a higher return potential than the Income Fund.
On November 30, your fund had 56% of its assets in stocks, 38% in bonds,
and only 6% in cash reserves. As in the Income Fund, we were overweighted in
bonds since stock valuations appeared high, while maintaining low cash
reserves. However, the stock market continued to register stunning returns
during the six months under review, extending their earlier gains.
Bonds also did well with the economy slowing and inflation under
control. We kept the fund's duration relatively long to take advantage of
falling yields and rising prices, and reduced our exposure to foreign,
unhedged bonds as the U.S. dollar strengthened.
Chart 3 - Asset Allocation - Personal Strategy Balanced Fund
We continued to favor growth over value stocks, since slowing economic
growth usually favors companies able to sustain earnings momentum even during
an economic slowdown. The fund's top 10 stock holdings were the same as at the
end of May, except for Great Lakes Chemical, which replaced Abbott
Laboratories. Performance was strong over both the 6 and 12 months ended
November 30, although the fund slightly lagged the benchmark in the longer
period because of its lower exposure to stocks.
Performance Comparison
Periods Ended 11/30/95
6 Months 12 Months
________ _________
Personal Strategy
Balanced Fund 11.15% 27.50%
Combined Index Portfolio* 11.13 28.96
* An unmanaged portfolio composed of 60% stocks (S&P 500) and 40% bonds
(Lehman Brothers Aggregate Bond Index).
Personal Strategy Growth Fund
Your fund seeks capital appreciation by investing primarily in common stocks.
The typical asset mix is 80% stocks and 20% bonds with 10% variations
permitted. As of November 30, your fund's allocation to stocks was little
changed from six months ago at 74% of assets. This relatively low exposure to
equities reflected our continuing belief that stock valuations look high and
will require strong corporate earnings to sustain them.
Chart 4 - Asset Allocation - Personal Strategy Growth Fund
We appear to be at a stage in the economic cycle where growth stocks
outperform value stocks, which accounts for our preference for the former. The
fund's top 10 stock holdings were the same as at the end of May, except for
UNUM, which replaced Philip Morris.
Bonds also registered strong returns, largely generated by capital
appreciation as interest rates continued to plummet from their levels of a
year ago. As in the other funds, we extended the duration of domestic bonds to
take advantage of rising prices and declining yields, and lightened exposure
to foreign bonds as the dollar rose against major foreign currencies.
Your fund generated strong returns during both the 6 and 12 months ended
November 30, surpassing the benchmark in the shorter period and trailing it
slightly over the year because of our lower exposure to stocks.
Performance Comparison
Periods Ended 11/30/95
6 Months 12 Months
________ _________
Personal Strategy Growth Fund 13.37% 30.98%
Combined Index Portfolio* 13.00 32.92
* An unmanaged portfolio composed of 80% stocks (S&P 500) and 20% bonds
(Lehman Brothers Aggregate Bond Index).
Outlook
The outcome of budget negotiations in Washington will be an important
consideration for the Fed in determining the extent of any further easing in
monetary policy. The market has already factored in lower short-term rates, as
the yield on the 30-year Treasury bond was only about four-tenths of a
percentage point higher than the fed funds rate at the end of November, and
many shorter-term yields were lower than that key lending rate.
We anticipate a relatively stable interest rate environment in the
months ahead. Should the growth of corporate earnings slow, the stock market
could experience the correction that has been long anticipated in some
quarters. We would increase our exposure to stocks in that event. Meanwhile,
any further decline in interest rates in the months ahead will also benefit
fixed income investors.
It is unlikely that the torrid returns of the past year can be
sustained, but the present economic environment bodes well for both stocks and
bonds.
Respectfully submitted,
Peter Van Dyke
Chairman of the
Investment Advisory Committee
December 15, 1995
Asset Benchmarks and Ranges
Benchmark Fund Range
_________ __________
Personal Strategy Income
Money Markets 20% 10-30%
Bonds 40 30-50
Stocks 40 30-50
Personal Strategy Balanced
Money Markets 10% 0-20%
Bonds 30 20-40
Stocks 60 50-70
Personal Strategy Growth
Bonds and Money Markets 20% 10-30%
Stocks 80 70-90
Personal Strategy Income Fund
Portfolio Overview
Percent of Net Assets
as of 11/30/95
__________________
Money Market Securities 11.9%
Commercial Paper 9.1
Other Assets Less Liabilities 2.8
Bonds 49.6
Foreign Government Obligations/Agencies 6.9
U.S. Government Mortgage-Backed 14.8
Corporate 21.6
U.S. Government Obligations/Agencies 6.3
Stocks 38.5
Ten Largest Holdings:
GE 1.2
Fannie Mae 1.1
Freddie Mac 1.0
Pfizer 1.0
Schlumberger 0.9
PepsiCo 0.8
Johnson & Johnson 0.8
Coca-Cola 0.8
Abbott Laboratories 0.7
Philip Morris 0.7
Total Return Components
Six Months Ended 11/30/95
Income + Principal Change = Total Return
____________________________________________
Personal Strategy
Income Fund 2.33% 6.96% 9.29%
Personal Strategy
Balanced Fund 1.92 9.23 11.15
Personal Strategy
Growth Fund - 13.37 13.37
Personal Strategy Balanced Fund
Portfolio Overview
Percent of Net Assets
as of 11/30/95
__________________
Money Market Securities 6.6%
Commercial Paper 5.0
Other Assets Less Liabilities 1.6
Bonds 37.8
Foreign Government Obligations/Agencies 3.3
U.S. Government Mortgage-Backed 9.6
Corporate 18.1
U.S. Government Obligations/Agencies 6.8
Stocks 55.6
Ten Largest Holdings:
Fannie Mae 1.5
GE 1.5
Freddie Mac 1.4
PepsiCo 1.2
Coca-Cola 1.2
Pfizer 1.1
Philip Morris 1.1
Schlumberger 1.1
Johnson & Johnson 1.1
Great Lakes Chemical 1.0
Personal Strategy Growth Fund
Portfolio Overview
Percent of Net Assets
as of 11/30/95
__________________
Money Market Securities 3.7%
Commercial Paper 3.4
Other Assets Less Liabilities 0.3
Bonds 22.6
Foreign Government Obligations/Agencies 1.6
U.S. Government Mortgage-Backed 4.6
Corporate 11.7
U.S. Government Obligations/Agencies 4.7
Stocks 73.7
Ten Largest Holdings:
GE 1.9
Fannie Mae 1.8
Freddie Mac 1.8
PepsiCo 1.6
Coca-Cola 1.5
Johnson & Johnson 1.5
Schlumberger 1.4
Pfizer 1.3
UNUM 1.3
Abbott Laboratories 1.3
Portfolio Highlights
Net Asset Value Dividends Per Share
Per Share 6 Months Ended
____________________________________
5/31/95 11/30/95 5/31/95 11/30/95
Personal Strategy Income Fund $10.94 $11.67 $0.24 $0.24
Personal Strategy Balanced Fund 11.15 12.18 0.19 0.20
Personal Strategy Growth Fund 11.44 12.97 0.11* 0.00*
* Fund distributes income annually at calendar year-end.
Statement of Net Assets
T. Rowe Price Personal Strategy Income Fund/November 30, 1995 (Unaudited)
(value in thousands)
Value
Common Stocks - 38.5%
FINANCIAL - 5.6%
BANK AND TRUST - 1.5%
1,500 shs Chemical Banking . . . . . . . . . . . . . $ 90
700 Integra Financial. . . . . . . . . . . . . 44
1,530 J. P. Morgan . . . . . . . . . . . . . . . 120
1,250 KeyCorp. . . . . . . . . . . . . . . . . . 46
750 Mellon Bank. . . . . . . . . . . . . . . . 40
340
INSURANCE - 1.3%
900 American International Group . . . . . . . 81
2,100 PartnerRe Holdings ADR . . . . . . . . . . 55
2,800 UNUM . . . . . . . . . . . . . . . . . . . 151
2,100 Willis-Corroon ADR . . . . . . . . . . . . 22
309
FINANCIAL SERVICES - 2.8%
1,800 American Express . . . . . . . . . . . . . 76
2,300 Fannie Mae . . . . . . . . . . . . . . . . 252
3,100 Freddie Mac. . . . . . . . . . . . . . . . 239
750 Sallie Mae . . . . . . . . . . . . . . . . 52
500 Zurich Reinsurance . . . . . . . . . . . . 15
634
Total Financial 1,283
UTILITIES - 1.7%
TELEPHONE - 0.8%
2,300 ALLTEL . . . . . . . . . . . . . . . . . . 68
950 AT&T . . . . . . . . . . . . . . . . . . . 63
900 SBC Communications . . . . . . . . . . . . 48
179
ELECTRIC UTILITIES - 0.9%
3,000 Centerior Energy . . . . . . . . . . . . . 29
1,400 Entergy. . . . . . . . . . . . . . . . . . 39
1,700 Niagara Mohawk . . . . . . . . . . . . . . 17
1,500 PacifiCorp . . . . . . . . . . . . . . . . 30
700 Texas Utilities. . . . . . . . . . . . . . 27
1,700 Unicom . . . . . . . . . . . . . . . . . . 54
196
Total Utilities 375
CONSUMER NONDURABLES - 13.3%
BEVERAGES - 1.9%
700 Anheuser-Busch . . . . . . . . . . . . . . 46
2,500 shs Coca-Cola. . . . . . . . . . . . . . . . . $ 189
3,500 PepsiCo. . . . . . . . . . . . . . . . . . 194
429
FOOD PROCESSING - 1.8%
900 Campbell . . . . . . . . . . . . . . . . . 51
760 CPC International. . . . . . . . . . . . . 52
960 General Mills. . . . . . . . . . . . . . . 53
800 Pioneer Hi-Bred. . . . . . . . . . . . . . 46
1,300 Ralston Purina . . . . . . . . . . . . . . 83
4,100 Sara Lee . . . . . . . . . . . . . . . . . 132
417
HOSPITAL SUPPLIES/HOSPITAL MANAGEMENT - 1.8%
4,200 Abbott Laboratories. . . . . . . . . . . . 171
1,900 Baxter International . . . . . . . . . . . 80
1,366 * Boston Scientific. . . . . . . . . . . . . 55
2,000 Columbia/HCA Healthcare. . . . . . . . . . 103
409
PHARMACEUTICALS - 4.5%
840 American Home Products . . . . . . . . . . 77
400 * Amgen. . . . . . . . . . . . . . . . . . . 20
500 Bristol-Myers Squibb . . . . . . . . . . . 40
398 Eli Lilly. . . . . . . . . . . . . . . . . 40
2,200 Johnson & Johnson. . . . . . . . . . . . . 191
1,400 Merck. . . . . . . . . . . . . . . . . . . 87
4,060 Pfizer . . . . . . . . . . . . . . . . . . 235
1,305 Pharmacia & Upjohn . . . . . . . . . . . . 47
1,600 Schering-Plough. . . . . . . . . . . . . . 92
2,300 SmithKline Beecham ADR . . . . . . . . . . 122
800 Warner-Lambert . . . . . . . . . . . . . . 71
1,022
BIOTECHNOLOGY - 0.1%
704 Guidant. . . . . . . . . . . . . . . . . . 26
MISCELLANEOUS CONSUMER PRODUCTS - 3.2%
2,400 American Greetings (Class A) . . . . . . . 66
1,500 Brunswick. . . . . . . . . . . . . . . . . 32
750 Colgate-Palmolive. . . . . . . . . . . . . 55
2,250 * CUC International. . . . . . . . . . . . . 85
1,600 Harcourt General . . . . . . . . . . . . . 64
1,900 Hasbro . . . . . . . . . . . . . . . . . . 58
1,800 Newell . . . . . . . . . . . . . . . . . . 47
1,750 Philip Morris. . . . . . . . . . . . . . . 154
740 Tambrands. . . . . . . . . . . . . . . . . 39
3,500 UST. . . . . . . . . . . . . . . . . . . . 114
714
Total Consumer Nondurables 3,017
CONSUMER SERVICES - 4.9%
RESTAURANTS - 0.0%
960 shs Darden Restaurants . . . . . . . . . . . . $ 11
GENERAL MERCHANDISERS - 0.4%
400 Dayton Hudson. . . . . . . . . . . . . . . 29
600 * Price/Costco . . . . . . . . . . . . . . . 10
3,500 TJX. . . . . . . . . . . . . . . . . . . . 58
97
SPECIALTY MERCHANDISERS - 0.7%
1,200 * Federated Department Stores. . . . . . . . 35
1,000 Home Depot . . . . . . . . . . . . . . . . 44
1,000 * Revco. . . . . . . . . . . . . . . . . . . 28
2,000 * Toys "R" Us. . . . . . . . . . . . . . . . 46
153
ENTERTAINMENT AND LEISURE - 1.3%
1,800 Disney . . . . . . . . . . . . . . . . . . 108
1,500 McDonald's . . . . . . . . . . . . . . . . 67
640 Reader's Digest (Class B). . . . . . . . . 30
324 * Viacom (Class A) . . . . . . . . . . . . . 15
1,464 * Viacom (Class B) . . . . . . . . . . . . . 71
291
MEDIA AND COMMUNICATIONS - 2.5%
640 Dun & Bradstreet . . . . . . . . . . . . . 40
1,575 Gaylord Entertainment. . . . . . . . . . . 40
1,800 * Multimedia . . . . . . . . . . . . . . . . 81
1,600 Reuters ADR. . . . . . . . . . . . . . . . 90
2,400 Time Warner. . . . . . . . . . . . . . . . 96
911 Times Mirror (Class A) . . . . . . . . . . 30
2,200 Turner Broadcasting Systems
(Class B). . . . . . . . . . . . . . . . . 62
3,300 Vodafone ADR . . . . . . . . . . . . . . . 119
558
Total Consumer Services 1,110
CONSUMER CYCLICALS - 0.7%
MISCELLANEOUS CONSUMER DURABLES - 0.7%
2,000 Corning. . . . . . . . . . . . . . . . . . 60
1,500 Eastman Kodak. . . . . . . . . . . . . . . 102
Total Consumer Cyclicals 162
TECHNOLOGY - 2.2%
ELECTRONIC COMPONENTS - 0.3%
500 Intel. . . . . . . . . . . . . . . . . . . 30
500 Motorola . . . . . . . . . . . . . . . . . 31
61
ELECTRONIC SYSTEMS - 0.6%
900 Hewlett-Packard . . . . . . . . . . . . . . . 75
1,250 Honeywell . . . . . . . . . . . . . . . . . . 59
134
INFORMATION PROCESSING - 0.3%
830 shs IBM. . . . . . . . . . . . . . . . . . . . $ 80
TELECOMMUNICATIONS - 0.2%
1,000 * DSC Communications . . . . . . . . . . . . 40
AEROSPACE AND DEFENSE - 0.7%
640 AlliedSignal . . . . . . . . . . . . . . . 30
1,800 Boeing . . . . . . . . . . . . . . . . . . 131
161
OFFICE AUTOMATION - 0.1%
500 * Ceridian . . . . . . . . . . . . . . . . . 21
Total Technology 497
CAPITAL EQUIPMENT - 1.5%
ELECTRICAL EQUIPMENT - 1.3%
900 Exide. . . . . . . . . . . . . . . . . . . 42
3,900 GE . . . . . . . . . . . . . . . . . . . . 262
304
MACHINERY - 0.2%
1,140 Deere. . . . . . . . . . . . . . . . . . . 37
Total Capital Equipment 341
BUSINESS SERVICES AND TRANSPORTATION - 3.2%
COMPUTER SERVICE AND SOFTWARE - 1.5%
1,100 Automatic Data Processing. . . . . . . . . 88
1,109 First Data . . . . . . . . . . . . . . . . 79
800 * Intuit . . . . . . . . . . . . . . . . . . 67
400 * Microsoft. . . . . . . . . . . . . . . . . 35
1,200 * Oracle Systems . . . . . . . . . . . . . . 54
900 * Sybase . . . . . . . . . . . . . . . . . . 32
355
DISTRIBUTION SERVICES - 0.9%
2,000 Alco Standard. . . . . . . . . . . . . . . 87
2,200 Cardinal Health. . . . . . . . . . . . . . 119
206
MISCELLANEOUS BUSINESS SERVICES - 0.5%
1,000 Deluxe Corp. . . . . . . . . . . . . . . . 28
2,660 WMX Technologies . . . . . . . . . . . . . 78
106
AIRLINES - 0.3%
840 * AMR. . . . . . . . . . . . . . . . . . . . 64
Total Business Services and Transportation 31
ENERGY - 2.7%
ENERGY SERVICES - 1.3%
2,000 Halliburton. . . . . . . . . . . . . . . . 87
3,230 Schlumberger . . . . . . . . . . . . . . . 205
292
INTEGRATED PETROLEUM - DOMESTIC - 0.8%
500 shs Atlantic Richfield . . . . . . . . . . . . $ 54
740 British Petroleum ADR. . . . . . . . . . . 71
1,300 Unocal . . . . . . . . . . . . . . . . . . 35
1,400 USX-Marathon . . . . . . . . . . . . . . . 25
185
INTEGRATED PETROLEUM - INTERNATIONAL - 0.6%
830 Exxon. . . . . . . . . . . . . . . . . . . 64
500 Mobil. . . . . . . . . . . . . . . . . . . 52
400 Texaco . . . . . . . . . . . . . . . . . . 30
146
Total Energy 623
PROCESS INDUSTRIES - 1.4%
SPECIALTY CHEMICALS - 1.2%
1,200 3M . . . . . . . . . . . . . . . . . . . . 79
1,940 Great Lakes Chemical . . . . . . . . . . . 138
1,700 Pall . . . . . . . . . . . . . . . . . . . 46
263
PAPER AND PAPER PRODUCTS - 0.1%
600 Mead . . . . . . . . . . . . . . . . . . . 34
FOREST PRODUCTS - 0.1%
400 Georgia-Pacific. . . . . . . . . . . . . . 31
Total Process Industries 328
BASIC MATERIALS - 1.1%
METALS - 0.9%
1,000 Alcoa. . . . . . . . . . . . . . . . . . . 59
2,300 * Alumax . . . . . . . . . . . . . . . . . . 76
700 Cyprus Amax Minerals . . . . . . . . . . . 19
1,000 Nucor. . . . . . . . . . . . . . . . . . . 50
204
MINING - 0.2%
1,997 Barrick Gold . . . . . . . . . . . . . . . 53
Total Basic Materials 257
MISCELLANEOUS - 0.2%
600 SPDR Trust . . . . . . . . . . . . . . . . 37
Total Miscellaneous 37
Total Common Stocks (Cost $6,701) 8,761
Corporate Bonds - 21.6%
$ 50,000 Agriculture Minerals,
10.75%, 9/30/03. . . . . . . . . . . . . . $ 55
100,000 Ahmanson HF, 7.875%, 9/1/04. . . . . . . . 107
100,000 Alpine Group, 12.25%, 7/15/03. . . . . . . 97
100,000 American Express, 7.60%, 8/15/02 . . . . . 107
100,000 American Standard, 9.875%, 6/1/01. . . . . 107
10,000 Ametek, 9.75%, 3/15/04 . . . . . . . . . . 11
90,000 Arcadian, Series B,
10.75%, 5/1/05 . . . . . . . . . . . . . . 99
60,000 Associates Corporation North America,
5.25%, 3/30/00 . . . . . . . . . . . . . . 59
100,000 Bally's Park Place Funding,
9.25%, 3/15/04 . . . . . . . . . . . . . . 100
80,000 Bank of Nova Scotia New York Agency,
6.25%, 9/15/08 . . . . . . . . . . . . . . 77
7,174 Carson Pirie Scott,
13.00%, 3/28/05. . . . . . . . . . . . . . 7
100,000 Citicorp, 7.75%, 6/15/06 . . . . . . . . . 110
90,000 Coca-Cola Bottling Group,
9.00%, 11/15/03. . . . . . . . . . . . . . 90
100,000 Coinmach, 11.75%, 11/15/05 . . . . . . . . 101
150,000 Coltec Industries, 10.25%, 4/1/02. . . . . 154
100,000 Consolidated Cigar,
10.50%, 3/1/03 . . . . . . . . . . . . . . 102
90,000 Container Corporation of America,
9.75%, 4/1/03. . . . . . . . . . . . . . . 88
150,000 Continental Cablevision,
9.00%, 9/1/08. . . . . . . . . . . . . . . 156
13,695 Daimler-Benz Auto Grantor
Trust, 3.90%, 10/15/98 . . . . . . . . . . 14
90,000 Dime Bancorp, 10.50%, 11/15/05 . . . . . . 100
50,000 Exide, Sr. Notes, 10.00%, 4/15/05. . . . . 54
90,000 Exide, 10.75%, 12/15/02. . . . . . . . . . 97
50,000 Federated Department Stores,
8.125%, 10/15/02 . . . . . . . . . . . . . 50
90,000 Ferrellgas, 10.00%, 8/1/01 . . . . . . . . 95
65,000 Firstfed Financial,
11.75%, 10/1/04. . . . . . . . . . . . . . 64
90,000 Harrahs, 10.875%, 4/15/02. . . . . . . . . 97
$100,000 IMC Fertilizer Group,
9.45%, 12/15/11. . . . . . . . . . . . . . $ 106
35,000 IMO Industries, 12.00%, 11/1/01. . . . . . 36
25,000 IVAC, Sr. Notes, 9.25%, 12/1/02. . . . . . 25
20,000 Long Island Lighting,
8.75%, 2/15/97 . . . . . . . . . . . . . . 21
50,000 Mobilemedia, 9.375%, 11/1/07 . . . . . . . 50
90,000 Owens-Illinois, Sr. Deb.,
11.00%, 12/1/03. . . . . . . . . . . . . . 100
100,000 Penn Traffic, Sr. Notes,
8.625%, 12/15/03 . . . . . . . . . . . . . 86
100,000 Pennsylvania Power and Light Company,
6.50%, 4/1/05. . . . . . . . . . . . . . . 101
100,000 Petroleum Heat & Power,
10.125%, 4/1/03. . . . . . . . . . . . . . 98
100,000 PNC Bank N.A., 7.875%, 4/15/05 . . . . . . 109
100,000 Portola Packaging, 10.75%, 10/1/05 . . . . 103
110,000 Principal Mutual Life Insurance, (144a),
8.00%, 3/1/44. . . . . . . . . . . . . . . 111
150,000 Public Service Electric & Gas,
7.00%, 9/1/24. . . . . . . . . . . . . . . 145
90,000 Quorum Health Group,
11.875%, 12/15/02. . . . . . . . . . . . . 100
100,000 Repap New Brunswick,
9.875%, 7/15/00. . . . . . . . . . . . . . 101
40,000 Riverwood International,
10.75%, 6/15/00. . . . . . . . . . . . . . 43
90,000 Rogers Cablesystem,
10.00%, 3/15/05. . . . . . . . . . . . . . 94
60,000 Rouse, 8.50%, 1/15/03. . . . . . . . . . . 65
90,000 Safeway, 9.875%, 3/15/07 . . . . . . . . . 104
90,000 Saul (B.F.), 11.625%, 4/1/02 . . . . . . . 91
60,000 Shawmut National,
7.20%, 4/15/03 . . . . . . . . . . . . . . 62
90,000 Silgan, 11.75%, 6/15/02. . . . . . . . . . 95
100,000 Sinclair Broadcasting,
10.00%, 9/30/05. . . . . . . . . . . . . . 102
90,000 Stone Container,
10.75%, 10/1/02. . . . . . . . . . . . . . 92
60,000 Tenneco, 8.00%, 11/15/99 . . . . . . . . . 64
200,000 Texas New Mexico Power,
12.50%, 1/15/99. . . . . . . . . . . . . . 225
120,000 Texas Utilities Electric,
7.375%, 10/1/25. . . . . . . . . . . . . . 119
$ 40,000 UCAR Global Enterprises,
12.00%, 1/15/05. . . . . . . . . . . . . . $ 45
20,000 WalMart, 7.25%, 6/1/13 . . . . . . . . . . 21
100,000 Westinghouse,
8.875%, 6/1/01 . . . . . . . . . . . . . . 104
90,000 Westpoint Stevens,
8.75%, 12/15/01. . . . . . . . . . . . . . 91
Total Corporate Bonds (Cost $4,653) 4,907
Foreign Government Obligations/Agencies - 6.9%
10,000 AUD Australian Commonwealth
Government Bonds,
9.50%, 8/15/03 . . . . . . . . . . . . . . 8
2,900,000 BEL Belgian Government
Bonds, 7.25%, 4/29/04. . . . . . . . . . . 101
30,000 CAD Canadian Government
Bonds, 6.50%, 6/1/04 . . . . . . . . . . . 21
70,000 CAD Canadian Government
Bonds, 9.75%, 6/1/21 . . . . . . . . . . . 64
270,000 FRF French Government
Bonds, 8.25%, 2/27/04. . . . . . . . . . . 59
425,000 DEM German Federal Government Bonds,
6.50%, 7/15/03 . . . . . . . . . . . . . . 303
145,000 DEM German Federal Government Bonds,
8.50%, 8/21/00 . . . . . . . . . . . . . . 114
6,000,000 JPY Int'l Bank for Reconstruction &
Development, 6.75%, 3/15/00. . . . . . . . 71
275,000,000 ITL Italian Government Bonds,
8.50%, 8/1/04. . . . . . . . . . . . . . . 146
40,500,000 #JPY Japanese Government
Bonds, 4.50%, 6/20/03. . . . . . . . . . . 444
120,000 DKK Kingdom of Denmark,
7.00%, 12/15/04. . . . . . . . . . . . . . 21
8,000,000 ESP Spanish Government
Bonds, 8.00%, 5/30/04. . . . . . . . . . . 57
100,000 SEK Swedish Government
Bonds, 6.00%, 2/9/05 . . . . . . . . . . . 13
65,000 GBP United Kingdom Treasury
Notes, 8.50%, 12/7/05. . . . . . . . . . . 106
25,000 GBP United Kingdom Treasury
Notes, 9.00%, 3/3/00 . . . . . . . . . . . 41
Total Foreign Government Obligations/Agencies
(Cost $1,427) 1,569
U.S. Government Mortgage-Backed Securities - 14.8%
Government National Mortgage
Association I,
$1,046,950 6.50%, 7/15/23 - 4/15/24 . . . . . . . . . $1,029
763,243 7.50%, 9/15 - 12/15/22 . . . . . . . . . . 784
991,963 8.00%, 1/15/22 - 10/20/25. . . . . . . . . 1,029
485,295 8.50%, 9/15/24 . . . . . . . . . . . . . . 507
22,006 10.50%, 2/15 - 10/15/13. . . . . . . . . . 24
Total U.S. Government Mortgage-Backed Securities
(Cost $3,116) 3,373
U.S. Government Obligations/Agencies - 6.3%
Tennessee Valley Authority,
60,000 7.25%, 7/15/43 . . . . . . . . . . . . . . 61
1,189,000 8.25%, 4/15/42 . . . . . . . . . . . . . . 1,374
Total U.S. Government Obligations/Agencies
(Cost $1,233) 1,435
Short-Term Investments - 9.1%
COMMERCIAL PAPER - 9.1%
1,178,174 Investments in Commercial Paper
through a joint account,
5.90-5.93%, 12/1/95. . . . . . . . . . . . 1,178
400,000 Kingdom of Sweden,
5.70%, 1/31/96 . . . . . . . . . . . . . . 393
500,000 Tampa Electric Company,
5.75%, 12/15/95. . . . . . . . . . . . . . 497
Total Short-Term Investments
(Cost $2,068) 2,068
Total Investments in Securities - 97.2% of Net Assets
(Cost $19,198) . . . . . . . . . . . . . . . . . . . . . $ 22,113
Other Assets Less Liabilities . . . . . . . . . . . . . . . 642
________
Net Assets Consist of: . . . . . . . . . . . . . . . . .Value
Accumulated net investment
income - net of distributions. . . . . . . . . . . . . . .152
Accumulated net realized gain/loss -
net of distributions . . . . . . . . . . . . . . . . . . .175
Net unrealized gain (loss) . . . . . . . . . . . . . . .2,918
Paid-in-capital applicable to
1,950,601 shares of $0.0001
par value capital stock
outstanding; 1,000,000,000
shares of the Corporation
authorized . . . . . . . . . . . . . . . . . . 19,510
NET ASSETS . . . . . . . . . . . . . . . . . . . . . $ 22,755
________
________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . $11.67
______
______
* Non-income producing
# Securities contain some restrictions as to public resale-total of
such securities at period-end amounts to 1.95% of net assets.
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 .49% of net assets.
AUD Australian dollar
BEL Belgian franc
CAD Canadian dollar
DEM German deutschemark
DKK Danish krone
ESP Spanish peseta
FRF French franc
GBP British sterling
ITL Italian lira
JPY Japanese yen
SEK Swedish krona
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price Personal Strategy Balanced Fund/November 30, 1995 (Unaudited)
(value in thousands)
Value
Common Stocks - 55.6%
FINANCIAL - 7.9%
BANK AND TRUST - 2.0%
1,200 shs Chemical Banking . . . . . . . . . . . . . $ 72
1,000 Integra Financial. . . . . . . . . . . . . 62
1,430 J. P. Morgan . . . . . . . . . . . . . . . 112
1,150 KeyCorp. . . . . . . . . . . . . . . . . . 43
1,250 Mellon Bank. . . . . . . . . . . . . . . . 67
356
INSURANCE - 1.9%
1,050 American International Group . . . . . . . 94
2,000 PartnerRe Holdings ADR . . . . . . . . . . 52
3,100 UNUM . . . . . . . . . . . . . . . . . . . 168
1,900 Willis-Corroon ADR . . . . . . . . . . . . 20
334
FINANCIAL SERVICES - 4.0%
1,600 American Express . . . . . . . . . . . . . 68
2,400 Fannie Mae . . . . . . . . . . . . . . . . 263
3,200 Freddie Mac. . . . . . . . . . . . . . . . 246
650 Sallie Mae . . . . . . . . . . . . . . . . 46
2,200 Zurich Reinsurance . . . . . . . . . . . . 64
687
Total Financial 1,377
UTILITIES - 2.6%
ELECTRIC UTILITIES - 1.5%
2,600 Centerior Energy . . . . . . . . . . . . . 25
1,400 Entergy. . . . . . . . . . . . . . . . . . 39
6,000 Niagara Mohawk . . . . . . . . . . . . . . 59
1,300 PacifiCorp . . . . . . . . . . . . . . . . 26
1,400 Texas Utilities. . . . . . . . . . . . . . 54
1,500 Unicom . . . . . . . . . . . . . . . . . . 48
251
TELEPHONE - 1.1%
3,200 ALLTEL . . . . . . . . . . . . . . . . . . 94
650 AT&T . . . . . . . . . . . . . . . . . . . 43
1,100 SBC Communications . . . . . . . . . . . . 59
196
Total Utilities 447
CONSUMER NONDURABLES - 17.7%
BEVERAGES - 2.7%
700 Anheuser-Busch . . . . . . . . . . . . . . 46
2,700 Coca-Cola. . . . . . . . . . . . . . . . . 205
3,800 shs PepsiCo. . . . . . . . . . . . . . . . . . $ 210
461
FOOD PROCESSING - 2.7%
1,100 Campbell . . . . . . . . . . . . . . . . . 61
860 CPC International. . . . . . . . . . . . . 59
760 General Mills. . . . . . . . . . . . . . . 42
1,200 Pioneer Hi-Bred. . . . . . . . . . . . . . 69
1,300 Ralston Purina . . . . . . . . . . . . . . 83
5,000 Sara Lee . . . . . . . . . . . . . . . . . 161
475
PHARMACEUTICALS - 5.6%
640 American Home Products . . . . . . . . . . 58
1,000 * Amgen. . . . . . . . . . . . . . . . . . . 50
600 Bristol-Myers Squibb . . . . . . . . . . . 48
332 Eli Lilly. . . . . . . . . . . . . . . . . 33
2,100 Johnson & Johnson. . . . . . . . . . . . . 182
1,300 Merck. . . . . . . . . . . . . . . . . . . 80
1,500 * Perrigo. . . . . . . . . . . . . . . . . . 20
3,260 Pfizer . . . . . . . . . . . . . . . . . . 189
1,160 Pharmacia & Upjohn . . . . . . . . . . . . 42
1,600 Schering-Plough. . . . . . . . . . . . . . 92
2,100 SmithKline Beecham ADR . . . . . . . . . . 112
700 Warner-Lambert . . . . . . . . . . . . . . 62
968
MISCELLANEOUS CONSUMER PRODUCTS - 4.4%
2,400 American Greetings
(Class A). . . . . . . . . . . . . . . . . 66
1,400 Brunswick. . . . . . . . . . . . . . . . . 30
850 Colgate-Palmolive. . . . . . . . . . . . . 62
2,600 * CUC International. . . . . . . . . . . . . 99
1,800 Harcourt General . . . . . . . . . . . . . 72
1,400 Hasbro . . . . . . . . . . . . . . . . . . 43
1,800 Newell . . . . . . . . . . . . . . . . . . 48
2,150 Philip Morris. . . . . . . . . . . . . . . 189
640 Tambrands. . . . . . . . . . . . . . . . . 33
3,600 UST. . . . . . . . . . . . . . . . . . . . 117
759
BIOTECHNOLOGY - 0.1%
586 Guidant. . . . . . . . . . . . . . . . . . 22
HOSPITAL SUPPLIES AND MANAGEMENT - 2.2%
3,900 Abbott Laboratories. . . . . . . . . . . . 159
1,400 Baxter International . . . . . . . . . . . 59
1,366 * Boston Scientific. . . . . . . . . . . . . 55
2,100 Columbia/HCA Healthcare. . . . . . . . . . 108
381
Total Consumer Nondurables 3,066
CONSUMER SERVICES - 7.8%
GENERAL MERCHANDISERS - 1.0%
1,000 shs Dayton Hudson. . . . . . . . . . . . . . . $ 73
3,000 * Price/Costco . . . . . . . . . . . . . . . 50
3,200 TJX. . . . . . . . . . . . . . . . . . . . 53
176
SPECIALTY MERCHANDISERS - 1.5%
1,700 Circuit City Stores. . . . . . . . . . . . 49
1,200 * Federated Department Stores. . . . . . . . 35
1,700 Home Depot . . . . . . . . . . . . . . . . 75
2,000 * Revco. . . . . . . . . . . . . . . . . . . 55
2,000 * Toys "R" Us. . . . . . . . . . . . . . . . 47
261
ENTERTAINMENT AND LEISURE - 1.6%
1,700 Disney . . . . . . . . . . . . . . . . . . 102
1,400 McDonald's . . . . . . . . . . . . . . . . 63
840 Reader's Digest (Class B). . . . . . . . . 39
348 * Viacom (Class A) . . . . . . . . . . . . . 17
1,103 * Viacom (Class B) . . . . . . . . . . . . . 53
274
MEDIA AND COMMUNICATIONS - 3.6%
640 Dun & Bradstreet . . . . . . . . . . . . . 40
1,575 Gaylord Entertainment. . . . . . . . . . . 40
2,000 * Multimedia . . . . . . . . . . . . . . . . 90
1,700 Reuters ADR. . . . . . . . . . . . . . . . 96
2,500 Time Warner. . . . . . . . . . . . . . . . 100
1,471 Times Mirror (Class A) . . . . . . . . . . 48
2,200 Turner Broadcasting Systems
(Class B). . . . . . . . . . . . . . . . . 62
4,000 Vodafone ADR . . . . . . . . . . . . . . . 144
620
RESTAURANTS - 0.1%
1,760 Darden Restaurants . . . . . . . . . . . . 20
Total Consumer Services 1,351
CONSUMER CYCLICALS - 1.0%
MISCELLANEOUS CONSUMER DURABLES - 1.0%
2,900 Corning. . . . . . . . . . . . . . . . . . 88
1,400 Eastman Kodak. . . . . . . . . . . . . . . 95
Total Consumer Cyclicals 183
TECHNOLOGY - 3.6%
ELECTRONIC COMPONENTS - 0.6%
800 Intel. . . . . . . . . . . . . . . . . . . 49
800 Motorola . . . . . . . . . . . . . . . . . 49
98
ELECTRONIC SYSTEMS - 0.9%
1,000 Hewlett-Packard. . . . . . . . . . . . . . 83
1,650 shs Honeywell. . . . . . . . . . . . . . . . . $ 78
161
INFORMATION PROCESSING - 0.3%
630 IBM. . . . . . . . . . . . . . . . . . . . 61
TELECOMMUNICATIONS - 0.3%
1,200 * DSC Communications . . . . . . . . . . . . 47
AEROSPACE AND DEFENSE - 1.0%
540 AlliedSignal . . . . . . . . . . . . . . . 26
2,100 Boeing . . . . . . . . . . . . . . . . . . 153
179
OFFICE AUTOMATION - 0.3%
1,200 * Ceridian . . . . . . . . . . . . . . . . . 50
SPECIALIZED COMPUTER - 0.2%
1,000 * Silicon Graphics . . . . . . . . . . . . . 37
Total Technology 633
CAPITAL EQUIPMENT - 2.3%
ELECTRICAL EQUIPMENT - 1.9%
500 Emerson Electric . . . . . . . . . . . . . 39
800 Exide. . . . . . . . . . . . . . . . . . . 37
3,800 GE . . . . . . . . . . . . . . . . . . . . 255
331
MACHINERY - 0.4%
1,140 Deere. . . . . . . . . . . . . . . . . . . 38
700 * Varity . . . . . . . . . . . . . . . . . . 27
65
Total Capital Equipment 396
BUSINESS SERVICES AND TRANSPORTATION - 4.2%
COMPUTER SERVICE AND SOFTWARE - 2.1%
900 Automatic Data Processing. . . . . . . . . 72
1,292 First Data . . . . . . . . . . . . . . . . 92
800 * Intuit . . . . . . . . . . . . . . . . . . 67
500 * Microsoft. . . . . . . . . . . . . . . . . 43
1,250 * Oracle Systems . . . . . . . . . . . . . . 57
800 * Sybase . . . . . . . . . . . . . . . . . . 28
359
DISTRIBUTION SERVICES - 1.3%
2,300 Alco Standard. . . . . . . . . . . . . . . 100
2,200 Cardinal Health. . . . . . . . . . . . . . 119
219
MISCELLANEOUS BUSINESS SERVICES - 0.5%
900 Deluxe Corp. . . . . . . . . . . . . . . . 25
2,460 WMX Technologies . . . . . . . . . . . . . 72
97
AIRLINES - 0.3%
640 shs * AMR. . . . . . . . . . . . . . . . . . . . $ 49
Total Business Services and Transportation 724
ENERGY - 4.3%
ENERGY SERVICES - 1.5%
1,700 Halliburton. . . . . . . . . . . . . . . . 74
2,930 Schlumberger . . . . . . . . . . . . . . . 186
260
INTEGRATED PETROLEUM - DOMESTIC - 1.4%
1,000 Atlantic Richfield . . . . . . . . . . . . 109
840 British Petroleum ADR. . . . . . . . . . . 80
1,300 Unocal . . . . . . . . . . . . . . . . . . 35
1,200 USX-Marathon . . . . . . . . . . . . . . . 22
246
INTEGRATED PETROLEUM - INTERNATIONAL - 1.4%
630 Exxon. . . . . . . . . . . . . . . . . . . 49
600 Mobil. . . . . . . . . . . . . . . . . . . 63
500 Royal Dutch Petroleum ADR. . . . . . . . . 64
900 Texaco . . . . . . . . . . . . . . . . . . 66
242
Total Energy 748
PROCESS INDUSTRIES - 2.2%
SPECIALTY CHEMICALS - 1.8%
1,100 3M . . . . . . . . . . . . . . . . . . . . 72
1,800 A. Schulman. . . . . . . . . . . . . . . . 33
2,440 Great Lakes Chemical . . . . . . . . . . . 173
1,400 Pall . . . . . . . . . . . . . . . . . . . 38
316
PAPER AND PAPER PRODUCTS - 0.2%
500 Mead . . . . . . . . . . . . . . . . . . . 29
FOREST PRODUCTS - 0.2%
400 Georgia-Pacific. . . . . . . . . . . . . . 31
Total Process Industries 376
BASIC MATERIALS - 1.7%
METALS - 1.4%
1,000 Alcoa. . . . . . . . . . . . . . . . . . . 59
2,300 * Alumax . . . . . . . . . . . . . . . . . . 76
800 Cyprus Amax Minerals . . . . . . . . . . . 22
1,600 Nucor. . . . . . . . . . . . . . . . . . . 80
237
MINING - 0.3%
2,029 Barrick Gold . . . . . . . . . . . . . . . 53
Total Basic Materials 290
MISCELLANEOUS - 0.3%
800 shs SPDR Trust . . . . . . . . . . . . . . . . $ 49
Total Miscellaneous 49
Total Common Stocks (Cost $7,723) 9,640
Corporate Bonds - 18.1%
$ 100,000 Agriculture Minerals,
10.75%, 9/30/03. . . . . . . . . . . . . . 109
20,000 Ametek, 9.75%, 3/15/04 . . . . . . . . . . 22
25,000 Associates Corporation North America,
5.25%, 3/30/00 . . . . . . . . . . . . . . 24
50,000 Bally's Park Place Funding,
9.25%, 3/15/04 . . . . . . . . . . . . . . 50
37,000 Bank of Nova Scotia New York Agency,
6.25%, 9/15/08 . . . . . . . . . . . . . . 36
150,000 Bear Stearns, 8.25%, 2/1/02. . . . . . . . 163
5,640 Carson Pirie Scott,
13.00%, 3/28/05. . . . . . . . . . . . . . 6
50,000 Citicorp, 7.75%, 6/15/06 . . . . . . . . . 55
50,000 Coinmach, 11.75%, 11/15/05 . . . . . . . . 50
75,000 Coltec Industries
10.25%, 4/1/02 . . . . . . . . . . . . . . 77
100,000 Consolidated Cigar,
10.50%, 3/1/03 . . . . . . . . . . . . . . 102
100,000 Container Corporation of
America, 9.75%, 4/1/03 . . . . . . . . . . 98
75,000 Continental Cablevision,
9.00%, 9/1/08. . . . . . . . . . . . . . . 78
17,512 Daimler-Benz Auto Grantor
Trust, 3.90%, 10/15/98 . . . . . . . . . . 17
100,000 Dime Bancorp,
10.50%, 11/15/05 . . . . . . . . . . . . . 111
50,000 Exide, 10.00%, 4/15/05 . . . . . . . . . . 54
100,000 Firstfed Financial,
11.75%, 10/1/04. . . . . . . . . . . . . . 99
210,000 Florida Power,
6.125%, 3/1/03 . . . . . . . . . . . . . . 209
50,000 Ford Motor Credit, MTN,
5.80%, 5/11/98 . . . . . . . . . . . . . . 50
100,000 Harrahs, 10.875%, 4/15/02. . . . . . . . . 107
50,000 IMC Fertilizer Group,
9.45%, 12/15/11. . . . . . . . . . . . . . 53
20,000 IMO Industries,
12.00%, 11/1/01. . . . . . . . . . . . . . 20
$ 25,000 IVAC, Sr. Notes,
9.25%, 12/1/02 . . . . . . . . . . . . . . $ 25
30,000 Lenfest Communications,
8.375%, 11/1/05. . . . . . . . . . . . . . 30
50,000 Long Island Lighting,
8.75%, 2/15/97 . . . . . . . . . . . . . . 51
100,000 Owens-Illinois,
11.00%, 12/1/03. . . . . . . . . . . . . . 112
150,000 Paine Webber Group,
8.25%, 5/1/02. . . . . . . . . . . . . . . 162
50,000 Petroleum Heat & Power,
10.125%, 4/1/03. . . . . . . . . . . . . . 49
40,000 Portola Packaging,
10.75%, 10/1/05. . . . . . . . . . . . . . 41
100,000 Principal Mutual Life Insurance, (144a),
8.00%, 3/1/44. . . . . . . . . . . . . . . 101
150,000 Public Service Electric & Gas,
7.00%, 9/1/24. . . . . . . . . . . . . . . 145
100,000 Rogers Cablesystem,
10.00%, 3/15/05. . . . . . . . . . . . . . 105
25,000 Rouse, Sr. Notes,
8.50%, 1/15/03 . . . . . . . . . . . . . . 27
25,000 Shawmut National,
7.20%, 4/15/03 . . . . . . . . . . . . . . 26
50,000 Silgan, 11.75%, 6/15/02. . . . . . . . . . 53
50,000 Sinclair Broadcasting,
10.00%, 9/30/05. . . . . . . . . . . . . . 51
100,000 Stone Container,
10.75%, 10/1/02. . . . . . . . . . . . . . 103
25,000 Tenneco, 8.00%, 11/15/99 . . . . . . . . . 26
120,000 Texas New Mexico Power,
12.50%, 1/15/99. . . . . . . . . . . . . . 135
50,000 Texas Utilities Electric,
7.375%, 10/1/25. . . . . . . . . . . . . . 50
30,000 Texas Utilities Electric,
7.875%, 4/1/24 . . . . . . . . . . . . . . 30
60,000 WalMart, 7.25%, 6/1/13 . . . . . . . . . . 63
100,000 Westinghouse,
8.875%, 6/1/01 . . . . . . . . . . . . . . 104
50,000 Westpoint Stevens,
8.75%, 12/15/01. . . . . . . . . . . . . . 51
Total Corporate Bonds (Cost $2,971) 3,130
Foreign Government Obligations/Agencies - 3.3%
10,000 AUD Australian Commonwealth Government Bonds,
9.50%, 8/15/03 . . . . . . . . . . . . . . 8
750,000 BEL Belgian Government
Bonds, 7.25%, 4/29/04. . . . . . . . . . . $ 26
9,000 CAD Canadian Government
Bonds, 6.50%, 6/1/04 . . . . . . . . . . . 7
30,000 CAD Canadian Government
Bonds, 9.75%, 6/1/21 . . . . . . . . . . . 27
324,000 FRF French Government
Bonds, 8.25%, 2/27/04. . . . . . . . . . . 71
80,000 DEM German Federal Government
Bonds, 6.50%, 7/15/03. . . . . . . . . . . 57
65,000 DEM German Federal Government Bonds,
8.50%, 8/21/00 . . . . . . . . . . . . . . 51
2,000,000 JPY Int'l Bank for Reconstruction &
Development, 6.75%, 3/15/00. . . . . . . . 24
100,000,000 ITL Italian Government Bonds,
8.50%, 8/1/04. . . . . . . . . . . . . . . 53
15,700,000 #JPY Japanese Government
Bonds, 4.50%, 6/20/03. . . . . . . . . . . 172
55,000 DKK Kingdom of Denmark,
7.00%, 12/15/04. . . . . . . . . . . . . . 9
100,000 ESP Spanish Government
Bonds, 8.00%, 5/30/04. . . . . . . . . . . 1
100,000 SEK Swedish Government
Bonds, 6.00%, 2/9/05 . . . . . . . . . . . 13
10,000 GBP United Kingdom Treasury
Notes, 8.50%, 12/7/05. . . . . . . . . . . 16
24,000 GBP United Kingdom Treasury
Notes, 9.00%, 3/3/00 . . . . . . . . . . . 40
Total Foreign Government Obligations/Agencies
(Cost $514) 575
U.S. Government Mortgage-Backed Securities - 9.6%
Government National
Mortgage Association, I
$ 318,787 6.50%, 12/15/23 - 3/15/24. . . . . . . . . 313
186,994 7.50%, 12/15/22. . . . . . . . . . . . . . 191
1,123,035 8.00%, 3/15/22 - 10/20/25. . . . . . . . . 1,163
Total U.S. Government Mortgage-Backed Securities
(Cost $1,563) 1,667
U.S. Government Obligations/Agencies - 6.8%
Tennessee Valley Authority,
$ 40,000 7.25%, 7/15/43 . . . . . . . . . . . . . . $ 41
600,000 8.25%, 4/15/42 . . . . . . . . . . . . . . 693
400,000 U.S. Treasury Bonds,
6.875%, 8/15/25. . . . . . . . . . . . . . 440
Total U.S. Government Obligations/Agencies
(Cost $1,080) 1,174
Short-Term Investments - 5.0%
COMMERCIAL PAPER - 5.0%
857,353 Investments in Commercial Paper
through a joint account,
5.90-5.93%, 12/1/95. . . . . . . . . . . . 857
Total Short-Term Investments (Cost $857) 857
Total Investments in Securities - 98.4% of Net Assets
(Cost $14,708) $ 17,043
Other Assets Less Liabilities 280
________
Net Assets Consist of: Value
Accumulated net investment
income - net of distributions. . . . . . . . . . . . $ 62
Accumulated net realized gain/
loss - net of distributions. . . . . . . . . . . . . . 129
Net unrealized gain (loss) . . . . . . . . . . . . . .2,336
Paid-in-capital applicable to
1,422,733 shares of $0.0001 par
value capital stock outstanding;
1,000,000,000 shares of the
Corporation authorized . . . . . . . . . . . . . . . .14,796
_________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . $ 17,323
________
________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . $12.18
______
______
* Non-income producing
# Securities contain some restrictions as to public resale-total of such
securities at period-end amounts to .99% of net assets.
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 .58% of net assets.
AUD Australian dollar
BEL Belgian franc
CAD Canadian dollar
DEM German deutschemark
DKK Danish krone
ESP Spanish peseta
FRF French franc
GBP British sterling
ITL Italian lira
JPY Japanese yen
SEK Swedish krona
The accompanying notes are an integral part of these financial statements.
Statement of Net Assets
T. Rowe Price Personal Strategy Growth Fund/November 30, 1995 (Unaudited)
(value in thousands)
Value
Common Stocks - 73.7%
FINANCIAL - 10.2%
BANK AND TRUST - 2.9%
1,300 shs Chemical Banking . . . . . . . . . . . . . $ 78
1,500 Integra Financial. . . . . . . . . . . . . 93
1,830 J. P. Morgan . . . . . . . . . . . . . . . 144
1,750 KeyCorp. . . . . . . . . . . . . . . . . . 64
1,350 Mellon Bank. . . . . . . . . . . . . . . . 72
451
INSURANCE - 2.4%
1,050 American International Group . . . . . . . 94
2,000 PartnerRe Holdings ADR . . . . . . . . . . 53
3,700 UNUM . . . . . . . . . . . . . . . . . . . 200
1,900 Willis-Corroon ADR . . . . . . . . . . . . 20
367
FINANCIAL SERVICES - 4.9%
1,800 American Express . . . . . . . . . . . . . 76
2,600 Fannie Mae . . . . . . . . . . . . . . . . 285
3,600 Freddie Mac. . . . . . . . . . . . . . . . 277
650 Sallie Mae . . . . . . . . . . . . . . . . 46
2,500 Zurich Reinsurance . . . . . . . . . . . . 73
757
Total Financial 1,575
UTILITIES - 3.6%
TELEPHONE - 1.3%
3,600 ALLTEL . . . . . . . . . . . . . . . . . . 106
650 AT&T . . . . . . . . . . . . . . . . . . . 43
1,100 SBC Communications . . . . . . . . . . . . 60
209
ELECTRIC UTILITIES - 2.3%
6,500 Centerior Energy . . . . . . . . . . . . . 63
2,700 Entergy. . . . . . . . . . . . . . . . . . 75
6,000 Niagara Mohawk . . . . . . . . . . . . . . 59
1,300 PacifiCorp . . . . . . . . . . . . . . . . 25
1,600 Texas Utilities. . . . . . . . . . . . . . 62
2,000 Unicom . . . . . . . . . . . . . . . . . . 64
348
Total Utilities 557
CONSUMER NONDURABLES - 23.0%
BEVERAGES - 3.5%
900 Anheuser-Busch . . . . . . . . . . . . . . 59
3,100 Coca-Cola. . . . . . . . . . . . . . . . . 235
4,400 shs PepsiCo. . . . . . . . . . . . . . . . . . $ 243
537
FOOD PROCESSING - 3.5%
1,400 Campbell . . . . . . . . . . . . . . . . . 78
960 CPC International. . . . . . . . . . . . . 66
960 General Mills. . . . . . . . . . . . . . . 53
1,400 Pioneer Hi-Bred. . . . . . . . . . . . . . 80
1,200 Ralston Purina . . . . . . . . . . . . . . 77
5,600 Sara Lee . . . . . . . . . . . . . . . . . 181
535
HOSPITAL SUPPLIES/HOSPITAL MANAGEMENT - 3.0%
4,900 Abbott Laboratories. . . . . . . . . . . . 199
1,700 Baxter International . . . . . . . . . . . 72
1,366 * Boston Scientific. . . . . . . . . . . . . 55
2,700 Columbia/HCA Healthcare. . . . . . . . . . 139
465
PHARMACEUTICALS - 7.4%
840 American Home Products . . . . . . . . . . 77
1,200 * Amgen. . . . . . . . . . . . . . . . . . . 60
600 Bristol-Myers Squibb . . . . . . . . . . . 48
332 Eli Lilly. . . . . . . . . . . . . . . . . 33
2,700 Johnson & Johnson. . . . . . . . . . . . . 234
1,300 Merck. . . . . . . . . . . . . . . . . . . 80
3,000 * Perrigo. . . . . . . . . . . . . . . . . . 40
3,460 Pfizer . . . . . . . . . . . . . . . . . . 201
1,160 Pharmacia & Upjohn . . . . . . . . . . . . 41
2,000 Schering-Plough. . . . . . . . . . . . . . 115
2,700 SmithKline Beecham ADR . . . . . . . . . . 144
900 Warner-Lambert . . . . . . . . . . . . . . 80
1,153
MISCELLANEOUS CONSUMER PRODUCTS - 5.5%
2,800 American Greetings (Class A) . . . . . . . 76
1,900 Brunswick. . . . . . . . . . . . . . . . . 41
850 Colgate-Palmolive. . . . . . . . . . . . . 62
3,050 * CUC International. . . . . . . . . . . . . 116
2,500 Harcourt General . . . . . . . . . . . . . 101
1,800 Hasbro . . . . . . . . . . . . . . . . . . 55
2,500 Newell . . . . . . . . . . . . . . . . . . 66
2,250 Philip Morris. . . . . . . . . . . . . . . 197
640 Tambrands. . . . . . . . . . . . . . . . . 33
3,300 UST. . . . . . . . . . . . . . . . . . . . 108
855
BIOTECHNOLOGY - 0.1%
586 Guidant. . . . . . . . . . . . . . . . . . 22
Total Consumer Nondurables 3,567
CONSUMER SERVICES - 10.1%
GENERAL MERCHANDISERS - 1.2%
1,000 shs Dayton Hudson. . . . . . . . . . . . . . . $ 73
3,600 * Price/Costco . . . . . . . . . . . . . . . 60
3,200 TJX. . . . . . . . . . . . . . . . . . . . 53
186
SPECIALTY MERCHANDISERS - 2.0%
1,500 Circuit City Stores. . . . . . . . . . . . 43
1,200 * Federated Department Stores. . . . . . . . 35
2,000 Home Depot . . . . . . . . . . . . . . . . 89
3,100 * Revco. . . . . . . . . . . . . . . . . . . 86
2,800 * Toys "R" Us. . . . . . . . . . . . . . . . 65
318
ENTERTAINMENT AND LEISURE - 2.3%
2,100 Disney . . . . . . . . . . . . . . . . . . 126
1,800 McDonald's . . . . . . . . . . . . . . . . 80
1,040 Reader's Digest (Class B). . . . . . . . . 49
348 * Viacom (Class A) . . . . . . . . . . . . . 17
1,603 * Viacom (Class B) . . . . . . . . . . . . . 77
349
MEDIA AND COMMUNICATIONS - 4.3%
640 Dun & Bradstreet . . . . . . . . . . . . . 40
1,470 Gaylord Entertainment. . . . . . . . . . . 37
2,100 * Multimedia . . . . . . . . . . . . . . . . 94
1,900 Reuters ADR. . . . . . . . . . . . . . . . 107
3,000 Time Warner. . . . . . . . . . . . . . . . 120
1,571 Times Mirror (Class A) . . . . . . . . . . 51
2,100 Turner Broadcasting Systems (Class B). . . 59
4,200 Vodafone ADR . . . . . . . . . . . . . . . 152
660
RESTAURANTS - 0.3%
3,960 Darden Restaurants . . . . . . . . . . . . 46
Total Consumer Services 1,559
CONSUMER CYCLICALS - 1.7%
MISCELLANEOUS CONSUMER DURABLES - 1.7%
4,300 Corning. . . . . . . . . . . . . . . . . . 130
1,900 Eastman Kodak. . . . . . . . . . . . . . . 129
Total Consumer Cyclicals 259
TECHNOLOGY - 4.7%
ELECTRONIC SYSTEMS - 1.1%
1,200 Hewlett-Packard. . . . . . . . . . . . . . 99
1,550 Honeywell. . . . . . . . . . . . . . . . . 74
173
INFORMATION PROCESSING - 0.5%
730 IBM. . . . . . . . . . . . . . . . . . . . 71
AEROSPACE AND DEFENSE - 1.3%
540 shs AlliedSignal . . . . . . . . . . . . . . . $ 25
2,400 Boeing . . . . . . . . . . . . . . . . . . 175
200
TELECOMMUNICATIONS - 0.4%
1,400 * DSC Communications . . . . . . . . . . . . 55
ELECTRONIC COMPONENTS - 0.7%
1,000 Intel. . . . . . . . . . . . . . . . . . . 61
900 Motorola . . . . . . . . . . . . . . . . . 55
116
OFFICE AUTOMATION - 0.4%
1,600 * Ceridian . . . . . . . . . . . . . . . . . 67
SPECIALIZED COMPUTER - 0.3%
1,500 * Silicon Graphics . . . . . . . . . . . . . 55
Total Technology 737
CAPITAL EQUIPMENT - 3.1%
ELECTRICAL EQUIPMENT - 2.5%
700 Emerson Electric . . . . . . . . . . . . . 55
900 Exide. . . . . . . . . . . . . . . . . . . 41
4,400 GE . . . . . . . . . . . . . . . . . . . . 296
392
MACHINERY - 0.6%
1,140 Deere. . . . . . . . . . . . . . . . . . . 37
1,500 * Varity . . . . . . . . . . . . . . . . . . 58
95
Total Capital Equipment 487
BUSINESS SERVICES AND TRANSPORTATION - 5.5%
COMPUTER SERVICE AND SOFTWARE - 2.8%
1,100 Automatic Data Processing. . . . . . . . . 88
1,585 First Data . . . . . . . . . . . . . . . . 113
800 * Intuit . . . . . . . . . . . . . . . . . . 67
500 * Microsoft. . . . . . . . . . . . . . . . . 43
1,800 * Oracle Systems . . . . . . . . . . . . . . 82
1,000 * Sybase . . . . . . . . . . . . . . . . . . 35
428
DISTRIBUTION SERVICES - 1.6%
2,700 Alco Standard. . . . . . . . . . . . . . . 117
2,400 Cardinal Health. . . . . . . . . . . . . . 130
247
MISCELLANEOUS BUSINESS SERVICES - 0.7%
1,300 Deluxe Corp. . . . . . . . . . . . . . . . 36
2,560 WMX Technologies . . . . . . . . . . . . . 76
112
AIRLINES - 0.4%
840 * AMR. . . . . . . . . . . . . . . . . . . . 64
Total Business Services and Transportation 851
ENERGY - 5.1%
ENERGY SERVICES - 1.8%
1,300 shs Halliburton. . . . . . . . . . . . . . . . $ 56
3,430 Schlumberger . . . . . . . . . . . . . . . 218
274
INTEGRATED PETROLEUM - DOMESTIC - 1.7%
1,000 Atlantic Richfield . . . . . . . . . . . . 109
840 British Petroleum ADR. . . . . . . . . . . 80
1,300 Unocal . . . . . . . . . . . . . . . . . . 35
2,400 USX-Marathon . . . . . . . . . . . . . . . 44
268
INTEGRATED PETROLEUM - INTERNATIONAL - 1.6%
830 Exxon. . . . . . . . . . . . . . . . . . . 64
600 Mobil. . . . . . . . . . . . . . . . . . . 63
500 Royal Dutch Petroleum ADR. . . . . . . . . 64
900 Texaco . . . . . . . . . . . . . . . . . . 67
258
Total Energy 800
PROCESS INDUSTRIES - 3.7%
DIVERSIFIED CHEMICALS - 0.4%
1,000 DuPont . . . . . . . . . . . . . . . . . . 66
SPECIALTY CHEMICALS - 2.4%
1,100 3M . . . . . . . . . . . . . . . . . . . . 72
2,900 A. Schulman. . . . . . . . . . . . . . . . 53
2,740 Great Lakes Chemical . . . . . . . . . . . 195
2,000 Pall . . . . . . . . . . . . . . . . . . . 54
374
PAPER AND PAPER PRODUCTS - 0.5%
1,000 International Paper. . . . . . . . . . . . 38
500 Mead . . . . . . . . . . . . . . . . . . . 29
67
FOREST PRODUCTS - 0.4%
800 Georgia-Pacific. . . . . . . . . . . . . . 62
Total Process Industries 569
BASIC MATERIALS - 2.1%
METALS - 1.6%
1,000 Alcoa. . . . . . . . . . . . . . . . . . . 59
2,200 * Alumax . . . . . . . . . . . . . . . . . . 73
800 Cyprus Amax Minerals . . . . . . . . . . . 22
2,000 Nucor. . . . . . . . . . . . . . . . . . . 100
254
MINING - 0.5%
2,629 Barrick Gold . . . . . . . . . . . . . . . 69
Total Basic Materials 323
MISCELLANEOUS - 0.9%
2,400 shs SPDR Trust . . . . . . . . . . . . . . . . $ 146
Total Miscellaneous 146
Total Common Stocks (Cost $9,319) 11,430
Corporate Bonds - 11.7%
$ 50,000 Agriculture Minerals,
10.75%, 9/30/03. . . . . . . . . . . . . . 55
100,000 Ahmanson HF,
7.875%, 9/1/04 . . . . . . . . . . . . . . 107
10,000 Ametek, 9.75%, 3/15/04 . . . . . . . . . . 11
50,000 Arcadian, 10.75%, 5/1/05 . . . . . . . . . 55
15,000 Associates Corporation
North America, 5.25%, 3/30/00. . . . . . . 15
50,000 Bally's Park Place,
9.25%, 3/15/04 . . . . . . . . . . . . . . 50
15,000 Bank Nova Scotia New York Agency,
6.25%, 9/15/08 . . . . . . . . . . . . . . 14
100,000 BGE, 5.50%, 4/15/04. . . . . . . . . . . . 95
6,147 Carson Pirie Scott,
13.00%, 3/28/05. . . . . . . . . . . . . . 6
50,000 Coinmach, 11.75%, 11/15/05 . . . . . . . . 50
25,000 Coltec Industries,
10.25%, 4/1/02 . . . . . . . . . . . . . . 26
50,000 Consolidated Cigar,
10.50%, 3/1/03 . . . . . . . . . . . . . . 51
48,000 Continental Bank Chicago
NA, 12.50%, 4/1/01 . . . . . . . . . . . . 61
50,000 Continental Cablevision,
9.00%, 9/1/08. . . . . . . . . . . . . . . 52
19,308 Daimler-Benz Auto Grantor
Trust, 3.90%, 10/15/98 . . . . . . . . . . 19
90,000 Delta Air Lines,
8.625%, 6/15/04. . . . . . . . . . . . . . 97
50,000 Dime Bancorp,
10.50%, 11/15/05 . . . . . . . . . . . . . 55
50,000 Exide, 10.00%, 4/15/05 . . . . . . . . . . 54
50,000 Firstfed Financial,
11.75%, 10/1/04. . . . . . . . . . . . . . 49
50,000 Harrahs, 10.875%, 4/15/02. . . . . . . . . 54
10,000 IMO Industries,
12.00%, 11/1/01. . . . . . . . . . . . . . 10
30,000 Long Island Lighting,
8.75%, 2/15/97 . . . . . . . . . . . . . . 31
50,000 Owens-Illinois,
11.00%, 12/1/03. . . . . . . . . . . . . . 56
$100,000 Paine Webber Group,
8.25%, 5/1/02. . . . . . . . . . . . . . . $ 108
50,000 Petroleum Heat & Power,
10.125%, 4/1/03. . . . . . . . . . . . . . 49
90,000 Principal Mutual Life
Insurance,(144a),
8.00%, 3/1/44. . . . . . . . . . . . . . . 91
150,000 Public Service Electric & Gas,
7.00%, 9/1/24. . . . . . . . . . . . . . . 145
50,000 Rogers Cablesystem,
10.00%, 3/15/05. . . . . . . . . . . . . . 53
15,000 Rouse, 8.50%, 1/15/03. . . . . . . . . . . 16
15,000 Shawmut National,
7.20%, 4/15/03 . . . . . . . . . . . . . . 16
50,000 Silgan, 11.75%, 6/15/02. . . . . . . . . . 53
50,000 Sinclair Broadcasting,
10.00%, 9/30/05. . . . . . . . . . . . . . 51
15,000 Tenneco, 8.00%, 11/15/99 . . . . . . . . . 16
50,000 Texas New Mexico Power,
12.50%, 1/15/99. . . . . . . . . . . . . . 56
30,000 Texas Utilities Electric,
7.375%, 10/1/25. . . . . . . . . . . . . . 30
20,000 Texas Utilities Electric,
7.875%, 4/1/24 . . . . . . . . . . . . . . 20
30,000 WalMart, 7.25%, 6/1/13 . . . . . . . . . . 31
Total Corporate Bonds (Cost $1,713) 1,808
Foreign Government Obligations/Agencies - 1.6%
300,000 BEL Belgian Government Bonds,
7.25%, 4/29/04 . . . . . . . . . . . . . . 10
30,000 DEM German Federal Government
Bonds, 6.50%, 7/15/03. . . . . . . . . . . 22
23,000 DEM German Federal Government
Bonds, 8.50%, 8/21/00. . . . . . . . . . . 18
3,000 CAD Canadian Government
Bonds, 6.50%, 6/1/04 . . . . . . . . . . . 2
5,000 CAD Canadian Government
Bonds, 9.75%, 6/1/21 . . . . . . . . . . . 5
142,000 FRF French Government Bonds,
8.25%, 2/27/04 . . . . . . . . . . . . . . 31
1,000,000 JPY Int'l Bank for Reconstruction
& Development,
6.75%, 3/15/00 . . . . . . . . . . . . . . 12
45,000,000 ITL Italian Government Bonds,
8.50%, 8/1/04. . . . . . . . . . . . . . . 24
8,400,000 #JPY Japanese Government
Bonds, 4.50%, 6/20/03. . . . . . . . . . . 92
1,500,000 ESP Spanish Government Bonds,
8.00%, 5/30/04 . . . . . . . . . . . . . . $ 11
100,000 SEK Swedish Government Bonds,
6.00%, 2/9/05. . . . . . . . . . . . . . . 13
8,000 GBP United Kingdom Treasury
Notes, 9.00%, 3/3/00 . . . . . . . . . . . 13
Total Foreign Government Obligations/Agencies
(Cost $235) 253
U.S. Government Mortgage-Backed Securities - 4.6%
Government National Mortgage
Association I,
$144,927 6.50%, 12/15/23 - 4/15/24. . . . . . . . . 143
62,016 7.50%, 10/15/22. . . . . . . . . . . . . . 63
439,354 8.00%, 1/15/22 - 9/15/24 . . . . . . . . . 456
Government National Mortgage
Association II,
49,958 8.00%, 10/20/25. . . . . . . . . . . . . . 51
Total U.S. Government Mortgage-Backed Securities
(Cost $666) 713
U.S. Government Obligations/Agencies - 4.7%
Tennessee Valley Authority,
70,000 7.25%, 7/15/43 . . . . . . . . . . . . . . 71
260,000 8.25%, 4/15/42 . . . . . . . . . . . . . . 300
U.S. Treasury Bonds,
320,000 6.875%, 8/15/25. . . . . . . . . . . . . . 352
Total U.S. Government Obligations/Agencies
(Cost $686) 723
Short-Term Investments - 3.4%
COMMERCIAL PAPER - 3.4%
530,447 Investments in Commercial Paper
through a joint account,
5.90-5.93%, 12/1/95. . . . . . . . . . . . 530
Total Short-Term Investments (Cost $531) 530
Total Investments in Securities - 99.7% of Net Assets
(Cost $13,149) . . . . . . . . . . . . . . . . . . . . . $ 15,457
Other Assets Less Liabilities . . . . . . . . . . . . . . . 42
________
Net Assets Consist of: Value
________
Accumulated net investment
income - net of distributions. . . . . . . . . . . . $ 292
Accumulated net realized gain/
loss - net of distributions. . . . . . . . . . . . . . 154
Net unrealized gain (loss) . . . . . . . . . . . . . . 2,305
Paid-in-capital applicable to
1,195,077 shares of $0.0001
par value capital stock
outstanding; 1,000,000,000
shares of the Corporation
authorized . . . . . . . . . . . . . . . . . .12,748
________
NET ASSETS . . . . . . . . . . . . . . . . . . . . $ 15,499
________
________
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . $12.97
______
______
* Non-income producing
# Securities contain some restrictions as to public resale-total of such
securities at period-end amounts to .59% of net assets.
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 .59% of net assets.
BEL Belgian franc
CAD Canadian dollar
DEM German deutschemark
ESP Spanish peseta
FRF French franc
GBP British sterling
ITL Italian lira
JPY Japanese yen
SEK Swedish krona
The accompanying notes are an integral part of these financial statements.
Statement of Operations (Unaudited)
T. Rowe Price Personal Strategy Funds / Six Months Ended November 30, 1995
(in thousands)
Income Fund Balanced Fund Growth Fund
___________ ____________ ___________
INVESTMENT INCOME
Income
Interest . . . . . . . . . $ 495 $ 242 $ 126
Dividend . . . . . . . . . 87 85 100
_________ _________ _________
Total income . . . . . . . 582 327 226
_________ _________ _________
Expenses
Custody and accounting . . 55 52 52
Shareholder servicing. . . 38 19 25
Registration . . . . . . . 19 14 14
Legal and audit. . . . . . 9 9 10
Organization . . . . . . . 4 3 4
Directors. . . . . . . . . 3 3 3
Prospectus and
shareholder reports. . . . 2 6 5
Miscellaneous. . . . . . . 2 2 2
Reimbursed by Manager. . . (29) (32) (44)
_________ _________ _________
Total expenses . . . . . . 103 76 71
_________ _________ _________
Net investment income. . . . 479 251 155
_________ _________ _________
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain
on securities. . . . . . . . 182 128 144
Change in net unrealized gain
on securities. . . . . . . . 1,241 1,174 1,313
_________ _________ _________
Net realized and
unrealized gain . . . . . . 1,423 1,302 1,457
_________ _________ _________
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS. . . . . . . $1,902 $1,553 $1,612
_________ _________ _________
_________ _________ _________
The accompanying notes are an integral part of these financial statements.
Statement of Changes in Net Assets (Unaudited)
T. Rowe Price Personal Strategy Funds
(in thousands)
Income Fund Balanced Fund Growth Fund
_____________ _____________ _____________
July 29 July 29, July 29,
6 Months 1994* 6 Months 1994* 6 Months 1994*
Ended to Ended to Ended to
Nov. 30, May 31, Nov. 30, May 31, Nov. 30, May 31,
1995 1995 1995 1995 1995 1995
______ ______ ______ ______ ______ ______
INCREASE (DECREASE) IN
NET ASSETS FROM
Operations
Net investment
income . . . . . . . $ 479 $ 435 $ 251 $ 251 $ 155 $ 142
Net realized gain
(loss) . . . . . . . 182 51 128 1 144 10
Change in net
unrealized
gain or loss . . . . 1,241 1,677 1,174 1,162 1,313 992
______ ______ ______ ______ ______ ______
Increase (decrease)
in net assets
from operations. . . 1,902 2,163 1,553 1,414 1,612 1,144
______ ______ ______ ______ ______ ______
Distributions to shareholders
Net investment
income . . . . . . . (460) (314) (247) (211) - (68)
Net realized
gain . . . . . . . . (58) - - - - -
______ ______ ______ ______ ______ ______
Decrease in net assets
from
distributions. . . . (518) (314) (247) (211) - (68)
______ ______ ______ ______ ______ ______
Capital share transactions**
Shares
sold . . . . . . . . 2,709 19,163 4,338 12,675 4,160 10,577
Distributions
reinvested . . . . . 432 230 237 204 - 67
Shares redeemed. . . (2,480) (619) (1,905) (819)(1,077) (1,060)
______ ______ ______ ______ ______ ______
Increase (decrease)
in net assets from
capital share
transactions . . . . 661 18,774 2,670 12,060 3,083 9,584
______ ______ ______ ______ ______ ______
Net equalization . . . 5 42 11 43 56 58
______ ______ ______ ______ ______ ______
Increase (decrease) in
net assets . . . . . . 2,050 20,665 3,987 13,306 4,751 10,718
NET ASSETS
Beginning of
period . . . . . . . . 20,705 40 13,336 30 10,748 30
______ ______ ______ ______ ______ ______
End of period. . . . $22,755 $20,705 $17,323 $13,336 $15,499 $10,748
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
**Share information
Shares sold. . . . 242 1,926 372 1,251 346 1,029
Distributions
reinvested . . . . 39 22 21 20 - 7
Shares redeemed. . (222) (60) (166) (78) (90) (100)
______ ______ ______ ______ ______ ______
Increase (decrease)
in shares
outstanding. . . . 59 1,888 227 1,193 256 936
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
*Commencement of operations
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
T. Rowe Price Personal Strategy Funds / November 30, 1995
Note 1 - Significant Accounting Policies
T. Rowe Price Personal Strategy Funds, Inc., (the Corporation) is registered
under the Investment Company Act of 1940. The Personal Strategy Income Fund,
(the Income Fund) the Personal Strategy Balanced Fund (the Balanced Fund), and
the Personal Strategy Growth Fund, (the Growth Fund), diversified, open-end
management investment companies, are three of the portfolios established by
the Corporation.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange (including NASDAQ) 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.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of
each fund, as authorized by the Board of Directors.
B) 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.
C) Premiums and Discounts - Premiums and discounts on debt securities are
amortized for both financial reporting and tax purposes.
D) 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 each fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. The funds follow the practice of
equalization under which undistributed net investment income per share is
unaffected by fund shares sold or redeemed.
Note 2 - Investment Transactions
Consistent with their investment objectives, the funds engage in the following
practices to manage exposure to certain risks and enhance performance. The
investment objective, policies, program, and risk factors of each fund are
described more fully in each fund's prospectus and Statement of Additional
Information.
A) Noninvestment-Grade Debt Securities - At November 30, 1995, each fund held
investments in noninvestment-grade debt securities, commonly referred to as
"high-yield" or "junk" bonds. A real or perceived economic downturn or higher
interest rates could adversely affect the liquidity or value, or both, of such
securities because such events could lessen the ability of issuers to make
principal and interest payments.
B) Commercial Paper Joint Account - The funds 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 each fund's criteria as to
quality, yield, and liquidity.
C) Securities Lending - To earn additional income, the Growth Fund lends its
securities to approved brokers. At November 30, 1995, the market value of
securities on loan was $2,361,652, which was fully collateralized by cash.
Although the risk is mitigated by the collateral, the fund could experience a
delay in recovering its securities and a possible loss of income or value if
the borrower fails to return them.
D) Purchases and sales of U.S. government securities and other portfolio
securities, excluding short-term securities, for the six months ended November
30, 1995, were as follows:
Income Balanced Growth
Fund Fund Fund
________ ________ ________
U.S. Government
Securities
Purchases $ 493,827 $ 515,472 $ 638,582
Sales 160,858 58,984 28,071
Other Securities
Purchases 1,826,517 2,777,626 3,621,066
Sales 1,811,518 1,169,121 1,226,718
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since each fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income.
At November 30, 1995, the aggregate cost of investments for the Income
Fund, Balanced Fund, and Growth Fund for federal income tax and financial
reporting purposes was $19,198,000, $14,708,000, and $13,149,000,
respectively. Net unrealized gain (loss) on investments was as follows:
Income Balanced Growth
Fund Fund Fund
________ ________ ________
Appreciated
Investments $2,982,000 $2,418,000 $2,421,000
Depreciated
Investments (67,000) (83,000) (113,000)
__________ __________ __________
Net Unrealized
Gain (Loss) $2,915,000 $2,335,000 $2,308,000
__________ __________ __________
__________ __________ __________
Note 4 - Related Party Transactions
The investment management agreement between each fund and T. Rowe Price
Associates, Inc. (the Manager), provides for an annual investment management
fee, computed daily and paid monthly, consisting of an Individual Fund Fee
equal to 0.15% for the Income Fund, 0.25% for the Balanced Fund and 0.30% for
the Growth Fund, 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 0.31% for assets in
excess of $34 billion. At November 30, 1995, and for the six months then
ended, the effective annual Group Fee rate was 0.34%. Each 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 May 31, 1996 for the funds which would
cause each fund's ratio of expenses to average net assets to exceed 0.95% for
the Income Fund, 1.05% for the Balanced Fund, and 1.10% for the Growth Fund
respectively. Thereafter through May 31, 1998 each 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 each fund's ratio of expenses to average net assets to exceed
0.95%, 1.05% and 1.10%, respectively. Pursuant to these agreements, $53,000,
43,000 and $41,000 of management fees were not accrued by the Income Fund,
Balanced Fund, and Growth Fund for the six months ended November 30, 1995, and
$29,000, $32,000, and $44,000, respectively, of other expenses were borne by
the Manager in each fund.
In addition, each fund has entered into agreements with the Manager and
two wholly owned subsidiaries of the Manager, pursuant to which each fund
receives certain other services. The Manager computes the daily share price
and maintains the financial records of each fund. T. Rowe Price Services,
Inc., is each fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the funds. T. Rowe Price Retire-
ment Plan Services, Inc., provides subaccounting and recordkeeping services
for certain retirement accounts invested in each fund. The Income Fund,
Balanced Fund, and Growth Fund incurred expenses pursuant to these related
party agreements totaling approximately $70,000, 47,000 and $52,000,
respectively, for the six months ended November 30, 1995, of which $13,000,
$9,000 and $10,000, respectively, were payable at period-end.
Financial Highlights (Unaudited)
T. Rowe Price Personal Strategy Funds
For a share outstanding throughout each period
Income Fund Balanced Fund Growth Fund
____________ _____________ _____________
Six July 29, Six July 29, Six July 29,
Months 1994** Months 1994** Months 1994**
Ended to Ended to Ended to
Nov. 30, May 31, Nov. 30, May 31, Nov. 30, May 31,
1995 1995 1995 1995 1995 1995
NET ASSET VALUE,
BEGINNING
OF PERIOD. . . . . . . $10.94 $10.00 $11.15 $10.00 $11.44 $10.00
______ ______ ______ ______ ______ ______
Investment activities
Net investment
income . . . . . . . 0.25* 0.41* 0.20* 0.33* 0.16* 0.25*
Net realized and
unrealized
gain (loss). . . . . 0.75 0.85 1.03 1.08 1.37 1.30
______ ______ ______ ______ ______ ______
Total from investment
activities . . . . . 1.00 1.26 1.23 1.41 1.53 1.55
______ ______ ______ ______ ______ ______
Distributions
Net investment
income . . . . . . . (0.24) (0.32) (0.20) (0.26) - (0.11)
Net realized
gain . . . . . . . . (0.03) - - - - -
______ ______ ______ ______ ______ ______
Total
distributions. . . . (0.27) (0.32) (0.20) (0.26) - (0.11)
______ ______ ______ ______ ______ ______
NET ASSET VALUE,
END OF PERIOD. . . . . $11.67 $10.94 $12.18 $11.15 $12.97 $11.44
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
RATIOS/SUPPLEMENTAL DATA
Total return . . . . . 9.29%* 12.90%* 11.15%* 14.35%*13.37%* 15.65%*
Ratio of expenses
to average
net assets . . . . . . 0.95%*! 0.95%*! 1.05%*! 1.05%*!1.10%*! 1.10%*!
Ratio of net investment
income to average
net assets . . . . . . 4.44%*! 4.71%*! 3.45%*! 3.74%*!2.41%*! 2.76%*!
Portfolio turnover
rate . . . . . . . . . 20.7%! 50.5%! 17.6%! 25.8%! 20.0%! 25.7%!
Net assets,
end of period
(in thousands) . . . . $22,755 $20,705 $17,323 $13,336 $15,499 $10,748
* Excludes expenses reimbursed by the manager pursuant to a voluntary net
expense limitation in effect through May 31, 1996.
** Commencement of operations.
! Annualized.
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 -- Shareholder service representatives are available from 8 a.m. to
10 p.m. Monday -- Friday, and weekends from 8:30 a.m. to 5 p.m. ET. Call
1-800-225-5132 to speak directly with a representative who will be able to
assist you with your accounts.
In Person -- Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. While there,
you can drop off applications or obtain prospectuses and other literature.
Automated 24-Hour Services
Tele*Access(registered trademark) (1-800-638-2587) provides information
such as account balance, date and amount of your last transaction, latest
dividend payment, and fund prices and yields. Additionally, you have the
ability to request prospectuses, statements, account and tax forms; reorder
checks; and initiate purchase, redemption, and exchange orders for identically
registered accounts.
PC*Access(registered trademark) provides the same information as
Tele*Access, but on a personal computer via dial-up modem.
Account Services
Checking -- Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield Fund and Emerging Markets Bond
Fund).
Automatic Investing -- Build your account over time by investing directly
from your bank account or paycheck with Automatic Asset Builder. Additionally,
Automatic Exchange enables you to set up systematic investments from one fund
account into another, such as from a money fund into a stock fund. A low, $50
minimum makes it easy to get started.
Automatic Withdrawal -- If you need money from your fund account on a
regular basis, you can establish scheduled, automatic redemptions.
Dividend and Capital Gains Payment Options -- Reinvest all or some of your
distributions, or take them in cash. We give you maximum flexibility and
convenience.
Investment Information
Combined Statement -- A comprehensive overview of your T. Rowe Price
accounts. The summary page gives your earnings by tax category, provides total
portfolio value, and lists your investments by type -- stock, bond, and money
market. Detail pages itemize account transactions by fund.
Shareholder Reports -- Portfolio managers review the performance of the
funds in plain language and discuss T. Rowe Price's economic outlook.
The T. Rowe Price Report -- A quarterly newsletter with relevant articles
on market trends, personal financial planning, and T. Rowe Price's economic
perspective.
Performance Update -- A quarterly report reviewing recent market
developments and providing comprehensive performance information for every T.
Rowe Price fund.
Insights -- A library of information that includes reports on mutual fund
tax issues, investment strategies, and financial markets.
Detailed Investment Guides -- Our widely acclaimed Asset Mix Worksheet,
College Planning Kit, Retirees Financial Guide, Retirement Planning Kit (also
available on disk for PC use), and Guide to Risk-Adjusted Performance can help
you determine and reach your investment goals.
Discount Brokerage
You can trade stocks, bonds, options, precious metals, and other securities at
a substantial savings over regular commission rates. Call a shareholder
service representative for more information.
Chart 1 - Interest Rate Levels
Chart showing yields on 30-year, 5-year, and 1-year Treasuries, and the fed
funds rate, from 11/30/94 to 11/30/95.
Chart 2 - Asset Allocation - Personal Strategy Income Fund
Pie Chart - bonds 50%, stocks 38%, money market securities 12%.
Chart 3 - Asset Allocation - Personal Strategy Balanced Fund
Pie Chart - stocks 56%, bonds 38%, cash reserves 6%.
Chart 4 - Asset Allocation - Personal Strategy Growth Fund
Pie Chart - stocks 74%, bonds and cash reserves 26%.
