<PAGE>
Semiannual Report
PERSONAL
STRATEGY
FUNDS
NOVEMBER 30, 1996
[LOGO OF T. ROWE PRICE APPEARS HERE]
<PAGE>
REPORT HIGHLIGHTS
-----------------------------------------------------------------------------
. The past six months were good to stock and bond investors, as stocks made new
highs and bonds rebounded from their weakness earlier in the year.
. The funds' sector weightings were largely unchanged except for increased
exposure to foreign stocks and a slight reduction in foreign bond holdings.
. The Personal Strategy Funds turned in strong performances, although some
lagged their benchmarks slightly because of foreign stock holdings, which
trailed domestic stocks.
. We expect bond yields to trade in a 6% to 7% range through much of 1997 and
U.S. stocks to generate respectable but more modest returns than in the past
two years.
. The U.S. economy should continue on its steady growth track, while strong
markets overseas could provide opportunities for shareholders.
<PAGE>
Fellow Shareholders
The six months ended November 30, 1996, rewarded both stock and bond investors
as the U.S. stock market climbed to new highs and the bond market rebounded.
Your funds, which are well diversified, posted solid returns. The Personal
Strategy Growth Fund, with its high component of equities, generated the
strongest returns, while the Balanced and Income Funds followed in that order.
MARKET REVIEW
The domestic stock market was on track for another stellar year at the end of
November. Large-cap stocks, measured by the Standard & Poor's 500 Stock Index,
returned 14.4% during the past six months and 27.86% for the last 12 months,
although smaller stocks (Nasdaq Composite and Russell 2000) lagged the blue
chips. Equity performance was driven by a combination of favorable factors,
including sustainable economic growth, moderate inflation, and rising corporate
profits. November was a particularly robust month for stocks, as investors
responded favorably to election results and drove prices up sharply.
International stocks trailed domestic equities but still posted positive
returns.
Interest Rate Levels
[INTEREST RATE GRAPH APPEARS HERE]
30-Year Treasury 1-Year Treasury 5-Year Treasury
Nov 30, 95 6.19 5.39 5.59
6 5.21 5.44
6.08 4.93 5.28
2/96 6.46 5.14 5.65
6.65 5.42 6.08
6.96 5.63 6.46
5/96 6.93 5.7 6.55
7.02 5.79 6.63
6.94 5.8 6.52
8/96 7.03 5.81 6.6
6.95 5.72 6.48
6.71 5.48 6.15
Nov 30, 96 6.41 5.41 5.9
During the second quarter, the economy registered an annualized growth rate of
4.7%, well above the level considered compatible with moderate inflation. As a
result, long-term Treasury yields rose to more than 7%. However, accelerating
inflation is not yet evident. With economic growth slowing to around 2% in the
third quarter, longer-term rates fell to below 6.5% at the end of November. The
federal funds rate target, controlled by the Fed, has remained at 5.25% for
almost a year, and we see no compelling reason at this time for the Fed to push
it either higher or lower.
1
<PAGE>
Investment-grade bonds, represented by the Lehman Brothers Aggregate Bond Index,
returned 7.3% during the last six months, while corporate bonds outperformed
government and mortgage securities. High-yield or "junk" bonds, which sometimes
act more like stocks than like other bonds, benefited from the economic
environment and contributed strongly to performance for the last six months and
the year as a whole.
Many foreign markets also experienced interest rate declines, which boosted
international bond returns. Even with the dampening effect of a strong U.S.
dollar, which reduced returns in dollar terms, international bonds in major
markets fared almost as well as their domestic counterparts over the last six
months.
PERFORMANCE AND STRATEGY REVIEW
The funds' investment committee meets monthly to adjust the weightings of
stocks, bonds, and money market securities within the specified ranges for each
fund, based on market conditions and economic fundamentals. The committee left
the sector weightings largely unchanged over the last six months but fine-tuned
some components within the sectors (adding to foreign stock holdings, for
example, and reducing exposure to domestic stocks). Growth stocks, some of which
were sold to realize gains, continued to make up over half of domestic equity
holdings while value stocks accounted for the rest. The committee continued to
maintain a minimal weighting in cash equivalents and a slight overweighting in
bonds, reducing foreign bond exposure in some areas as the U.S. dollar
strengthened.
Asset Allocation
Personal Strategy Income Fund
[PIE CHART APPEARS HERE]
Money Markets Bonds Stocks
10% 48% 42%
Based on net assets as of 11/30/96.
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,
2
<PAGE>
although these figures can vary by as much as 10 percentage points above or
below these levels.
The mix of securities was little changed from six months ago. The allocation to
money market securities was increased from 6% to 10%, while the weightings in
bonds and stocks were decreased slightly to 48% and 42%, respectively. In the
fixed income area, we overweighted investment-grade securities and slightly
increased our high-yield bond exposure. We reduced foreign bond holdings since
we expect the U.S. dollar to keep strengthening, dampening returns in dollar
terms.
In the equity area, we added to foreign stocks and continued to favor domestic
growth over value stocks at this stage of the economic cycle.
All asset sectors contributed positively to fund results, which surpassed the
benchmark shown in the table for the 6- and 12-month periods.
Performance Comparison
<TABLE>
<CAPTION>
Periods Ended 11/30/96 6 Months 12 Months
- ---------------------------------------------------
<S> <C> <C>
Personal Strategy
Income Fund 9.91% 14.49%
...................................................
Combined Index Portfolio * 9.21 14.26
...................................................
</TABLE>
*An unmanaged portfolio composed of 40% stocks (S&P 500), 40% bonds (Lehman
Brothers Aggregate Bond Index), and 20% cash (90-day Treasury bills).
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 percentage point variations
permitted for each asset class. This asset allocation structure offers higher
risk but also a higher potential return than the Income Fund.
Asset Allocation
Personal Strategy Balanced Fund
[PIE CHART APPEARS HERE]
Money Markets Bonds Stocks
4% 35% 61%
On November 30, your fund had 61% of its assets in stocks, 35% in bonds, and 4%
in cash reserves. These allocations were
3
<PAGE>
little changed from six months ago. As in the Income Fund, we invested heavily
in bonds and maintained a small cash component. In the bond area, we continued
to overweight investment-grade and high-yield bonds while lightening up on
foreign bonds. With equities, we favored growth over value stocks since the
former usually fare better than value stocks in a moderate to slowing economy.
(The tables following this letter list our major stock holdings.)
Performance Comparison
<TABLE>
<CAPTION>
Periods Ended 11/30/96 6 Months 12 Months
- ---------------------------------------------------
<S> <C> <C>
Personal Strategy
Balanced Fund 10.48% 17.26%
...................................................
Combined Index Portfolio * 11.10 18.71
...................................................
</TABLE>
*An unmanaged portfolio composed of 60% stocks (S&P 500), 30% bonds (Lehman
Brothers Aggregate Bond Index), and 10% cash (90-day Treasury bills).
We increased our exposure to foreign stocks during the past six months. Most
overseas markets did not perform as well as the S&P 500, causing the fund to lag
its benchmark during the 6- and 12-month periods. Nevertheless, absolute
performance was strong, and we believe foreign equities offer very good value at
this time and provide greater diversification for the fund.
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 and money market securities,
with 10 percentage point variations permitted. As of November 30, the fund's
allocation was 79% stocks, 18% bonds, and 3% cash equivalents.
Asset Allocation
Personal Strategy Growth Fund
[PIE CHART APPEARS HERE]
Stocks Bonds and Money Markets
79% 21%
At the end of November, the fund's allocations to stocks and fixed income
securities were virtually unchanged from six months ago. As in the other
Personal Strategy Funds, we favored growth over value stocks since, in a slowing
economic environment, growth stocks normally outperform value stocks with their
lower earnings growth rates. (Major equity holdings are listed in the table
following this letter.)
4
<PAGE>
We also increased the fund's allotment of foreign stocks, believing that many
overseas markets offer more attractive valuations than the domestic market at
this time, even though they have lagged so far this year. In the fixed income
area, we overweighted investment-grade and high-yield securities, as in the
other funds. We also reduced the foreign bond component because of the dollar's
strength against most major currencies.
Performance Comparison
<TABLE>
<CAPTION>
Periods Ended 11/30/96 6 Months 12 Months
- --------------------------------------------------------------------------------
<S> <C> <C>
Personal Strategy
Growth Fund 11.54% 20.84%
................................................................................
Combined Index Portfolio * 12.99 23.27
................................................................................
*An unmanaged portfolio composed of 80% stocks (S&P 500), 20% bonds (Lehman
Brothers Aggregate Bond Index).
</TABLE>
Your fund's performance trailed the benchmark's for the last 6- and 12-month
periods largely because of its exposure to international stocks and its small
cash position. However, the fund generated strong absolute returns, and we
expect our foreign stocks to serve shareholders well over time.
OUTLOOK
We expect 1997 to repeat this year's economic pattern, with low unemployment,
barely rising inflation, and moderate growth overall, but varying from quarter
to quarter. Through most of 1996, the bond market's response to the economic
climate helped the Federal Reserve keep the economy on its steady track, which
is appropriate at this phase of the business cycle. Until either growth or
inflation deviates from its current path, we expect long-term Treasury yields to
move in a range between 6% and 7%.
The recent drop in rates and surge in stock prices following the November
elections reflected an expectation by investors of progress toward a balanced
budget. Prospects of a balanced budget in the not-too-distant future should
increase the likelihood of subdued inflation over the long term, providing
further strength for stocks and bonds.
5
<PAGE>
Although many stocks appear to be overvalued, we expect the domestic market to
make further progress, but returns could be more restrained than during the past
two years. Overseas, many world economies are expanding, a result of lower
interest rates and stronger corporate earnings. Accordingly, we are hopeful that
international markets can provide solid investment opportunities for your funds.
Respectfully submitted,
/s/ Peter Van Dyke
Peter Van Dyke
President and Chairman of the Investment Advisory Committee
December 20, 1996
6
<PAGE>
T. Rowe Price Personal Strategy Funds
- --------------------------------------------------------------------------------
Portfolio Highlights
PORTFOLIO OVERVIEW
<TABLE>
<CAPTION>
Percent of
Net Assets
11/30/96
<S> <C>
Personal Strategy Income Fund
- -------------------------------------------------------
Money Market Securities 10.4%
..................................................
Bonds 48.3%
..................................................
Treasuries/Agencies 4.2
..............................................
Mortgage-Backed 14.7
..............................................
Corporate 24.7
..............................................
Foreign 4.7
..............................................
Stocks 41.3%
..................................................
Five Largest Holdings:
Travelers/Aetna 0.6
.............................................
H&R Block 0.6
.............................................
British Petroleum 0.6
.............................................
General Electric 0.5
.............................................
AT&T 0.5
.............................................
Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Money Market Securities 3.6%
..................................................
Bonds 35.6%
..................................................
Treasuries/Agencies 2.4
..............................................
Mortgage-Backed 13.0
..............................................
Corporate 17.0
..............................................
Foreign 3.2
..............................................
Stocks 60.8%
..................................................
Five Largest Holdings:
Travelers/Aetna 0.9
..............................................
General Electric 0.8
..............................................
H&R Block 0.8
..............................................
Corning 0.7
..............................................
British Petroleum 0.7
..............................................
Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Money Market Securities 3.2%
..................................................
Bonds 17.7%
..................................................
Treasuries/Agencies 0.2
..............................................
Mortgage-Backed 4.1
..............................................
Corporate 12.1
..............................................
Foreign 1.3
..............................................
Stocks 79.1%
..................................................
Five Largest Holdings:
H&R Block 1.3
..............................................
AT&T 1.2
..............................................
Travelers/Aetna 1.1
..............................................
General Electric 1.1
..............................................
Great Lakes Chemical 1.1
..............................................
</TABLE>
7
<PAGE>
T. Rowe Price Personal Strategy Funds
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
These charts show the value of a hypothetical $10,000 investment in each 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.
PERSONAL STRATEGY INCOME FUND
-----------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Combined Index Personal Strategy
<S> <C> <C>
July 31 1994 10,000 10,000
11/94 9,972 9,939
2/95 10,529 10,549
5/95 11,238 11,290
8/95 11,615 11,663
11/95 12,213 12,338
2/96 12,567 12,700
5/96 12,779 12,852
8/96 12,785 12,953
11/96 13,955 14,125
</TABLE>
PERSONAL STRATEGY BALANCED FUND
-----------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Combined Index Personal Strategy
<S> <C> <C>
July 31, 94 10,000 10,000
11/94 9,974 9,969
2/95 10,629 10,648
5/95 11,484 11,435
8/95 11,971 11,940
11/95 12,727 12,710
2/96 13,238 13,246
5/96 13,598 13,490
8/96 13,512 13,469
11/96 15,108 14,904
</TABLE>
8
<PAGE>
T. Rowe Price Personal Strategy Funds
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
PERSONAL STRATEGY GROWTH FUND
----------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Combined Index Personal Strategy
<S> <C> <C>
Jul 31, 94 10,000 10,000
11/94 9,974 10,010
2/95 10,728 10,756
5/95 11,732 11,565
8/95 12,334 12,232
11/95 13,258 13,111
2/96 13,940 13,810
5/96 14,464 14,205
8/96 14,273 14,101
11/96 16,344 15,844
</TABLE>
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- --------------------------------------------------------------------------------
This table shows how each fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
<TABLE>
<CAPTION>
Since Inception
Periods Ended 11/30/96 1 Year Inception Date
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Personal Strategy Income Fund 14.49% 15.91% 7/29/94
.......................................................................
Personal Strategy Balanced Fund 17.26 18.60 7/29/94
.......................................................................
Personal Strategy Growth Fund 20.84 21.75 7/29/94
.......................................................................
</TABLE>
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
9
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
Unaudited
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year 7/29/94
Ended Ended to
11/30/96 5/31/96 5/31/95
<S> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 11.85 $ 10.94 $ 10.00
..................................
Investment activities
Net investment income 0.25* 0.50* 0.41*
Net realized and
unrealized gain (loss) 0.86 0.98 0.85
..................................
Total from
investment activities 1.11 1.48 1.26
..................................
Distributions
Net investment income (0.25) (0.47) (0.32)
Net realized gain (0.46) (0.10) -
..................................
Total distributions (0.71) (0.57) (0.32)
..................................
NET ASSET VALUE
End of period $ 12.25 $ 11.85 $ 10.94
----------------------------------
Ratios/Supplemental Data
Total return 9.91%* 13.84%* 12.90%*
......................................................................
Ratio of expenses to
average net assets 0.95%+* 0.95%* 0.95%+*
......................................................................
Ratio of net investment
income to average
net assets 4.30%+* 4.31%* 4.71%+*
......................................................................
Portfolio turnover rate 57.8%+ 34.1% 50.5%+
......................................................................
Average commission rate paid $ 0.0447 $ 0.0460 -
......................................................................
Net assets, end of period
(in thousands) $ 33,610 $ 25,545 $ 20,705
......................................................................
</TABLE>
* Excludes expenses in excess of a 0.95% voluntary expense limitation in effect
through 5/31/98.
+ Annualized.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year 7/29/94
Ended Ended to
11/30/96 5/31/96 5/31/95
<S> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 12.68 $ 11.15 $ 10.00
...................................
Investment activities
Net investment income 0.28* 0.41* 0.33*
Net realized and
unrealized gain (loss) 1.02 1.56 1.08
...................................
Total from
investment activities 1.30 1.97 1.41
...................................
Distributions
Net investment income (0.20) (0.37) (0.26)
Net realized gain (0.10) (0.07) -
...................................
Total distributions (0.30) (0.44) (0.26)
...................................
NET ASSET VALUE
End of period $ 13.68 $ 12.68 $ 11.15
-----------------------------------
Ratios/Supplemental Data
Total return 10.48%* 17.97%* 14.35%*
........................................................................
Ratio of expenses to
average net assets 1.05%+* 1.05%* 1.05%+*
........................................................................
Ratio of net investment
income to average
net assets 3.08%+* 3.44%* 3.74%+*
........................................................................
Portfolio turnover rate 74.6%+ 47.7% 25.8%+
........................................................................
Average commission rate paid $ 0.0396 $ 0.0459 -
........................................................................
Net assets, end of period
(in thousands) $167,935 $116,826 $ 13,336
........................................................................
</TABLE>
* Excludes expenses in excess of a 1.05% voluntary expense limitation in effect
through 5/31/98.
+ Annualized.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Unaudited
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year 7/29/94
Ended Ended to
11/30/96 5/31/96 5/31/95
<S> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 13.69 $ 11.44 $ 10.00
..................................
Investment activities
Net investment income 0.15* 0.30* 0.25*
Net realized and
unrealized gain (loss) 1.43 2.29 1.30
..................................
Total from
investment activities 1.58 2.59 1.55
..................................
Distributions
Net investment income - (0.27) (0.11)
Net realized gain - (0.07) -
..................................
Total distributions - (0.34) (0.11)
..................................
NET ASSET VALUE
End of period $ 15.27 $ 13.69 $ 11.44
----------------------------------
Ratios/Supplemental Data
Total return 11.54%* 22.83%* 15.65%*
......................................................................
Ratio of expenses to
average net assets 1.10%+* 1.10%* 1.10%+*
......................................................................
Ratio of net investment
income to average
net assets 2.02%+* 2.27%* 2.76%+*
......................................................................
Portfolio turnover rate 77.3%+ 39.5% 25.7%+
......................................................................
Average commission rate paid $ 0.0433 $ 0.0491 -
......................................................................
Net assets, end of period
(in thousands) $ 40,280 $ 24,954 $ 10,748
......................................................................
</TABLE>
* Excludes expenses in excess of a 1.10% voluntary expense limitation in effect
through 5/31/98.
+ Annualized.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1996
<TABLE>
<CAPTION>
Statement of Net Assets Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Common Stocks 41.3%
FINANCIAL 9.2%
Bank and Trust 4.0%
Abbey National (GBP) 4,000 $ 47
................................................................................
Air Liquide (L) (FRF) 220 35
................................................................................
BANC ONE 700 33
................................................................................
Banca Commerciale Italiana (ITL) 20,000 37
................................................................................
Banco de Bilbao Vizcaya ADR 500 25
................................................................................
Banco Frances del Rio ADR 900 27
................................................................................
Bank of Boston 400 28
................................................................................
Barclay's (GBP) 3,000 52
................................................................................
Chase Manhattan 1,000 94
................................................................................
Citicorp 500 55
................................................................................
Deutsche Bank (DEM) 500 24
................................................................................
Development Bank of Singapore (SGD) 3,000 39
................................................................................
HSBC Holdings (GBP) 3,400 73
................................................................................
J. P. Morgan 430 40
................................................................................
KeyCorp 950 50
................................................................................
Kredietbank (BEL) 200 66
................................................................................
Mellon Bank 1,850 134
................................................................................
National City 1,200 56
................................................................................
NationsBank 500 52
................................................................................
Northern Trust 400 29
................................................................................
Norwest 1,600 75
................................................................................
Overseas Chinese Bank (SGD) 3,000 36
................................................................................
Schweizerischer Bankgesellschaft (CHF) 40 38
................................................................................
Schweizerischer Bankverein (CHF) 300 59
................................................................................
Societe Generale (FRF) 400 44
................................................................................
Societe Generale de Belgique (BEL) 150 11
................................................................................
Svenska Handelsbank (SEK) 1,000 27
................................................................................
Wells Fargo 100 28
................................................................................
Westpac Banking (AUD) 6,000 36
................................................................................
1,350
............
Insurance 2.2%
ACE Limited 1,400 81
................................................................................
American General 1,800 74
................................................................................
</TABLE>
13
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
American International Group 400 $ 46
................................................................................
CKAG Colonia Konzern (DEM) 600 46
................................................................................
Mid Ocean Limited 1,100 53
................................................................................
PMI Group 600 35
................................................................................
St. Paul Companies 600 35
................................................................................
Travelers/Aetna Property Casualty (Class A) 5,700 197
................................................................................
UNUM 1,300 93
................................................................................
W. R. Berkley 800 42
................................................................................
Willis-Corroon ADR 4,800 52
................................................................................
754
............
Financial Services 3.0%
Aames Financial 400 17
................................................................................
ADVANTA (Class B) 300 13
................................................................................
American Express 1,800 94
................................................................................
Associates First Capital 500 24
................................................................................
AXA (FRF) 300 18
................................................................................
Fannie Mae 2,400 99
................................................................................
Freddie Mac 900 103
................................................................................
Green Tree Financial 700 29
................................................................................
H&R Block 6,400 187
................................................................................
Household International 300 29
................................................................................
ING Groep (NLG) 1,750 61
................................................................................
Mercury Finance 7,000 82
................................................................................
Money Store 1,600 49
................................................................................
Sallie Mae 950 91
................................................................................
Travelers Group 2,133 96
................................................................................
992
............
Total Financial 3,096
............
UTILITIES 2.7%
Telephone Services 1.4%
AT&T 4,250 167
................................................................................
BellSouth 1,300 53
................................................................................
Hong Kong Telecommunications ADR 1,100 19
................................................................................
SBC Communications 1,500 79
................................................................................
Telecom New Zealand ADR 400 34
................................................................................
Telefonica de Espana ADR 1,000 66
................................................................................
</TABLE>
14
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Telekom Malaysia (MYR) 2,000 $ 18
................................................................................
Telmex ADR 1,300 39
................................................................................
475
............
Electric Utilities 1.3%
Centerior Energy 5,800 62
................................................................................
Electrabel (BEL) 50 12
................................................................................
Empresa Nacional de Electricidad ADR 300 20
................................................................................
Entergy 1,400 38
................................................................................
Hong Kong Electric (HKD) 10,000 32
................................................................................
Niagara Mohawk 5,400 47
................................................................................
PECO Energy 2,300 59
................................................................................
Texas Utilities 700 28
................................................................................
Unicom 3,500 93
................................................................................
Veba (DEM) 500 29
................................................................................
420
............
Total Utilities 895
............
CONSUMER NONDURABLES 8.6%
Cosmetics 0.2%
International Flavors & Fragrances 400 18
................................................................................
Kao (JPY) 4,000 47
................................................................................
65
............
Beverages 0.5%
Coca-Cola 300 15
................................................................................
LVMH (FRF) 200 51
................................................................................
PepsiCo 3,900 117
................................................................................
183
............
Food Processing 2.1%
Cadbury Schweppes ADR 1,500 53
................................................................................
CSM (NLG) 500 27
................................................................................
Danisco (DKK) 1,000 56
................................................................................
Eridania Beghin-Say (FRF) 300 46
................................................................................
General Mills 660 42
................................................................................
Heinz 1,900 72
................................................................................
Interstate Bakeries 1,100 50
................................................................................
McCormick 2,600 64
................................................................................
Nabisco Holdings (Class A) 1,100 43
................................................................................
</TABLE>
15
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Nestle (CHF) 50 $ 54
................................................................................
Ralston Purina 1,100 84
................................................................................
Sara Lee 2,500 98
................................................................................
689
............
Hospital Supplies/Hospital Management 0.7%
Baxter International 600 25
................................................................................
Boston Scientific * 900 53
................................................................................
Columbia/HCA Healthcare 1,800 72
................................................................................
Medtronic 800 53
................................................................................
Vencor * 1,400 45
................................................................................
248
............
Pharmaceuticals 2.8%
American Home Products 1,480 95
................................................................................
Amgen * 600 37
................................................................................
Astra (Class B) (SEK) 1,200 56
................................................................................
Bristol-Myers Squibb 300 34
................................................................................
Ciba-Geigy (CHF) 60 74
................................................................................
Eli Lilly 796 61
................................................................................
Gehe (DEM) 1,000 62
................................................................................
Glaxo Wellcome ADR 700 23
................................................................................
Johnson & Johnson 1,300 69
................................................................................
Merck 700 58
................................................................................
Perrigo * 3,000 28
................................................................................
Pfizer 1,660 149
................................................................................
Pharmacia & Upjohn 605 23
................................................................................
Schering-Plough 700 50
................................................................................
SmithKline Beecham ADR 1,300 90
................................................................................
Takeda Chemical Industries (JPY) 2,000 39
................................................................................
948
............
Health Care Services 0.3%
Apria Healthcare * 1,000 18
................................................................................
PacifiCare Health Systems (Class B) * 600 50
................................................................................
United HealthCare 800 34
................................................................................
102
............
Miscellaneous Consumer Products 2.0%
Benetton Group (ITL) 4,000 51
................................................................................
Bridgestone (JPY) 3,000 55
................................................................................
Colgate-Palmolive 650 60
................................................................................
</TABLE>
16
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
CUC International * 1,800 $ 48
................................................................................
Jones Apparel Group * 1,100 34
................................................................................
Kuraray (JPY) 3,000 29
................................................................................
Lion Nathan (NZD) 20,000 51
................................................................................
Newell 800 25
................................................................................
Philip Morris 1,550 160
................................................................................
Procter & Gamble 600 65
................................................................................
Richfood Holdings 1,500 39
................................................................................
Tambrands 340 15
................................................................................
UST 700 23
................................................................................
655
............
Total Consumer Nondurables 2,890
............
CONSUMER SERVICES 4.0%
General Merchandisers 0.7%
Dayton Hudson 1,200 47
................................................................................
Marui (JPY) 2,000 38
................................................................................
Tesco (GBP) 10,107 57
................................................................................
TJX 1,100 50
................................................................................
Wal-Mart 2,000 51
................................................................................
243
............
Specialty Merchandisers 1.3%
Circuit City Stores 400 13
................................................................................
Eckerd * 1,500 52
................................................................................
Federated Department Stores * 1,800 61
................................................................................
General Nutrition * 1,100 19
................................................................................
Home Depot 700 36
................................................................................
Kohl's * 1,100 44
................................................................................
Revco * 1,900 66
................................................................................
Safeway * 1,100 45
................................................................................
Staples * 800 16
................................................................................
Tupperware 1,300 69
................................................................................
421
............
Entertainment and Leisure 1.3%
Boston Chicken * 800 31
................................................................................
Carnival (Class A) 800 25
................................................................................
Disney 900 67
................................................................................
</TABLE>
17
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Hutchison Whampoa (HKD) 11,000 $ 85
.............................................................................
ITT * 1,000 46
.............................................................................
McDonald's 1,200 56
.............................................................................
Reader's Digest (Class B) 2,740 98
.............................................................................
Sharp (JPY) 3,000 47
.............................................................................
455
............
Media and Communications 0.7%
Catalina Marketing * 600 31
.............................................................................
Elsevier (NLG) 3,000 51
.............................................................................
R. R. Donnelly 700 23
.............................................................................
Time Warner 400 16
.............................................................................
Vodafone ADR 2,600 113
.............................................................................
234
............
Total Consumer Services 1,353
............
CONSUMER CYCLICALS 2.3%
Automobiles and Related 0.5%
Cycle & Carriage (SGD) 2,000 23
.............................................................................
Honda ADR 1,000 59
.............................................................................
Lear * 400 14
.............................................................................
Lucasvarity ADR 1,670 71
.............................................................................
167
............
Building and Real Estate 0.8%
Cheung Kong Holdings (HKD) 8,000 70
.............................................................................
DBS Land (SGD) 10,000 36
.............................................................................
Federal Realty Investment Trust, REIT 3,700 96
.............................................................................
Simon DeBartolo Group, REIT 2,168 59
.............................................................................
261
............
Miscellaneous Consumer Durables 1.0%
Corning 3,800 154
.............................................................................
Eastman Kodak 800 65
.............................................................................
Masco 300 11
.............................................................................
Oce Van Der Grinten NV (NLG) 300 33
.............................................................................
Ricoh (JPY) 4,000 43
.............................................................................
Roussel UCLAF (FRF) 200 52
.............................................................................
358
............
Total Consumer Cyclicals 786
............
</TABLE>
18
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
TECHNOLOGY 2.8%
Electronic Components 0.5%
Intel 500 $ 63
.............................................................................
Linear Technology 400 19
.............................................................................
Maxim Integrated Products * 800 37
.............................................................................
Xilinx * 900 40
.............................................................................
159
............
Electronic Systems 0.4%
ADT * 1,100 23
.............................................................................
Hewlett-Packard 400 22
.............................................................................
Honeywell 1,450 99
.............................................................................
144
............
Information Processing 0.5%
Hitachi ADR 400 38
.............................................................................
IBM 730 116
.............................................................................
154
............
Office Automation 0.1%
Ceridian * 900 43
.............................................................................
43
............
Specialized Computer 0.0%
Silicon Graphics * 800 16
.............................................................................
16
............
Telecommunications Equipment 0.7%
3Com * 700 53
.............................................................................
Cisco Systems * 900 61
.............................................................................
LM Ericsson (Class B) ADR 900 28
.............................................................................
MCI 800 24
.............................................................................
Telecomunicacoes Brasileiras ADR 700 53
.............................................................................
219
............
Aerospace and Defense 0.6%
AlliedSignal 1,540 113
.............................................................................
Boeing 500 50
.............................................................................
Lockheed Martin 500 45
.............................................................................
208
............
Total Technology 943
............
</TABLE>
19
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
CAPITAL EQUIPMENT 2.2%
Electrical Equipment 1.4%
ABB AG (CHF) 30 $ 38
................................................................................
Emerson Electric 400 39
................................................................................
GE 1,700 177
................................................................................
Hubbell (Class B) 1,600 67
................................................................................
Mitsubishi Electric (JPY) 5,000 29
................................................................................
Siemens (DEM) 1,000 48
................................................................................
Tomkins ADR 2,000 34
................................................................................
Tyco International 900 49
................................................................................
481
............
Machinery 0.8%
Danaher 1,400 63
................................................................................
Deere 540 24
................................................................................
GKN (GBP) 3,000 56
................................................................................
Man (DEM) 200 47
................................................................................
Teleflex 1,300 64
................................................................................
254
............
Total Capital Equipment 735
............
BUSINESS SERVICES AND
TRANSPORTATION 2.9%
Computer Service and Software 1.7%
Adobe Systems 600 24
................................................................................
Ascend Communications * 400 28
................................................................................
Automatic Data Processing 1,200 51
................................................................................
BMC Software * 1,600 70
................................................................................
Electronic Data Systems 700 34
................................................................................
First Data 1,618 65
................................................................................
Informix * 1,100 26
................................................................................
Medic Computer Systems * 800 27
................................................................................
Microsoft * 400 63
................................................................................
National Data 800 32
................................................................................
Oracle * 900 44
................................................................................
Reynolds & Reynolds 1,100 31
................................................................................
SunGard Data Systems * 800 34
................................................................................
Synopsys * 500 22
................................................................................
551
............
</TABLE>
20
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Distribution Services 0.2%
Alco Standard 1,200 $ 62
................................................................................
62
............
Environmental 0.1%
USA Waste Services * 1,000 32
................................................................................
32
............
Transportation Services 0.2%
Mitsubishi Heavy Industries (JPY) 4,000 33
................................................................................
United Engineers (MYR) 3,000 27
................................................................................
60
............
Miscellaneous Business Services 0.3%
Sime Darby (MYR) 6,000 22
................................................................................
Wallace Computer Sevices 1,100 39
................................................................................
WMX Technologies 1,460 53
................................................................................
114
............
Airlines 0.3%
AMR * 440 40
................................................................................
KLM (NLG) 1,000 26
................................................................................
Singapore Airlines (SGD) 3,000 28
................................................................................
94
............
Railroads 0.1%
Burlington Northern Santa Fe 500 45
................................................................................
45
............
Total Business Services and Transportation 958
............
ENERGY 3.0%
Energy Services 0.9%
BJ Services * 800 38
................................................................................
Cooper Cameron * 800 53
................................................................................
Elf Aquitaine ADR 700 31
................................................................................
Halliburton 1,200 72
................................................................................
Schlumberger 930 97
................................................................................
Total ADR 400 16
................................................................................
307
............
Integrated Petroleum - Domestic 1.3%
Atlantic Richfield 900 125
................................................................................
British Petroleum ADR 1,340 186
................................................................................
</TABLE>
21
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Unocal 700 $ 28
................................................................................
USX-Marathon 3,700 85
................................................................................
424
............
Integrated Petroleum - International 0.8%
ENI S.P.A. ADR 700 37
................................................................................
Exxon 430 41
................................................................................
Mobil 800 97
................................................................................
Repsol ADR 500 18
................................................................................
Royal Dutch Petroleum ADR 300 51
................................................................................
Texaco 400 39
................................................................................
283
............
Total Energy 1,014
............
PROCESS INDUSTRIES 2.6%
Diversified Chemicals 0.4%
DuPont 1,000 94
................................................................................
Hercules 400 20
................................................................................
Monsanto 400 16
................................................................................
Union Carbide 500 23
................................................................................
153
............
Specialty Chemicals 1.1%
3M 400 33
................................................................................
A. Schulman 2,000 48
................................................................................
Akzo Nobel (NLG) 200 26
................................................................................
BASF AG (DEM) 1,000 37
................................................................................
Great Lakes Chemical 2,940 158
................................................................................
Pall 1,100 29
................................................................................
Technip (FRF) 300 28
................................................................................
359
............
Paper and Paper Products 1.0%
Dai Nippon Printng (JPY) 3,000 55
................................................................................
International Paper 1,200 51
................................................................................
James River 2,500 80
................................................................................
Kimberly-Clark 1,400 137
................................................................................
Willamette Industries 300 20
................................................................................
343
............
</TABLE>
22
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Forest Products 0.1%
Georgia-Pacific 400 $ 29
................................................................................
29
............
Total Process Industries 884
............
BASIC MATERIALS 1.0%
Metals 0.5%
Alcoa 400 25
................................................................................
Nucor 1,500 82
................................................................................
Reynolds Metals 1,000 60
................................................................................
167
............
Mining 0.1%
CRA Limited (AUD) 2,000 33
................................................................................
33
............
Miscellaneous Materials 0.4%
Crown Cork & Seal 1,400 74
................................................................................
Malayan Cement (MYR) 21,000 49
................................................................................
123
............
Total Basic Materials 323
............
Total Common Stocks (Cost $ 11,646) 13,877
............
Corporate Bonds 24.7%
Agricultural Minerals and Chemicals, Sr. Notes
10.75%, 9/30/03 50,000 54
................................................................................
Ahmanson, H.F., Sub. Notes, 7.875%, 9/1/04 100,000 107
................................................................................
Alpine Group, Sr. Secured Notes, 12.25%, 7/15/03 50,000 55
................................................................................
American Express, 7.60%, 8/15/02 100,000 106
................................................................................
American Safety Razor, Sr. Notes, 9.875%, 8/1/05 100,000 107
................................................................................
American Standard, Sr. Sub Notes, 9.875%, 6/1/01 100,000 106
................................................................................
Ametek, Sr. Notes, 9.75%, 3/15/04 10,000 11
................................................................................
Associates Corporation, Sr. Notes, 5.25%, 3/30/00 60,000 58
................................................................................
Bally's Park Place, 1st Mtg. Notes, 9.25%, 3/15/04 100,000 110
................................................................................
Bank of Nova Scotia, Sub. Notes, 6.25%, 9/15/08 80,000 77
................................................................................
BF Saul REIT, Sr. Secured Notes, 11.625%, 4/1/02 90,000 97
................................................................................
Boise Cascade, Deb., 7.35%, 2/1/16 100,000 97
................................................................................
</TABLE>
23
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Building Material, Sr. Disc. Notes, STEP
Zero Coupon, 7/1/99; 11.75%, 7/1/99-7/1/04 100,000 $ 86
................................................................................
Celestica International, Sr. Gtd. Sub. Notes
(144a), 10.50%, 12/31/06 100,000 103
................................................................................
Celulosa Arauco y Constitucion, Notes, 7.00%,
12/15/07 300,000 299
................................................................................
Chancellor Broadcasting, Sr. Sub. Notes, 9.375%,
10/1/04 100,000 100
................................................................................
Citicorp Sub. Notes, 7.75%, 6/15/06 100,000 107
................................................................................
Coca-Cola Bottling Group, Sr. Sub. Notes
9.00%, 11/15/03 90,000 92
................................................................................
Coinmach, Sr. Notes, 11.75%, 11/15/05 100,000 107
................................................................................
Coltec Industries, Sr. Sub. Notes, 10.25%, 4/1/02 150,000 159
................................................................................
Communications & Power Industries, Sr. Sub. Notes
12.00%, 8/1/05 100,000 108
................................................................................
Consolidated Cigar, Sr. Sub. Notes, 10.50%, 3/1/03 100,000 104
................................................................................
Container Corporation of America, Sr. Notes
9.75%, 4/1/03 90,000 94
................................................................................
Continental Airlines, PTC, 6.94%, 10/15/13 500,000 506
................................................................................
Cooperative Utility Trust, 9.50%, 2/15/17 400,000 434
................................................................................
Daimler-Benz Auto Grantor Trust, 3.90%, 10/15/98 4,694 5
................................................................................
Doane Products, Sr. Notes, 10.625%, 3/1/06 50,000 53
................................................................................
Dominion Textile USA, Gtd. Sr. Notes, 9.25%, 4/1/06 100,000 102
................................................................................
Dr Pepper Bottling, Sr. Disc. Notes, STEP,
Zero Coupon, 2/15/98; 11.625%, 2/15/98-2/15/03 100,000 93
................................................................................
El Paso Electric, 1st Mtg. Notes, 8.90%, 2/1/06 100,000 106
................................................................................
Fairfax Financial Holdings Limited, Notes
8.25%, 10/1/15 250,000 267
................................................................................
Ferrellgas, Sr. Notes, 10.00%, 8/1/01 90,000 94
................................................................................
First Federal Financial, Notes, 11.75%, 10/1/04 100,000 106
................................................................................
Frontiervision Operating Partners, Sr. Sub. Notes
11.00%, 10/15/06 100,000 100
................................................................................
Fundy Cable, Sr. Secured 2nd Priority Notes
11.00%, 11/15/05 100,000 105
................................................................................
GNF, 1st Mtg. Notes, 10.625%, 4/1/03 100,000 110
................................................................................
Grand Metropolitan Investment, 9.00%, 8/15/11 300,000 369
................................................................................
Harrah's, Sr. Sub. Notes, 10.875%, 4/15/02 90,000 96
................................................................................
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 100,000 107
................................................................................
</TABLE>
24
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
International Knife & Saw, Sr. Sub. Notes, (144a)
11.375%, 11/15/06 50,000 $ 52
................................................................................
Intertek Finance, Sr. Sub. Notes, (144a), 10.25%,
11/1/06 50,000 51
................................................................................
Jordan Industries, Sr. Notes, 10.375%, 8/1/03 75,000 73
................................................................................
K & F Industries, Sr. Sub. Notes, 10.375%, 9/1/04 100,000 106
................................................................................
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 100,000 109
................................................................................
Long Island Lighting, Gen. and Ref. Bonds
8.75%, 2/15/97 20,000 20
................................................................................
Northrop Grumman, Notes, 7.00%, 3/1/06 70,000 71
................................................................................
Outdoor Systems, Sr. Sub. Notes, 9.375%, 10/15/06 100,000 101
................................................................................
Owens-Illinois, Sr. Deb., 11.00%, 12/1/03 90,000 100
................................................................................
Pennsylvania Power and Light, 1st Mtg. Notes
6.50%, 4/1/05 100,000 99
................................................................................
Petroleum Heat & Power, Sub. Notes, 10.125%, 4/1/03 100,000 100
................................................................................
PNC Bank N.A., Sub. Notes, 7.875%, 4/15/05 100,000 107
................................................................................
Portola Packaging, Sr. Notes, 10.75%, 10/1/05 100,000 104
................................................................................
Principal Mutual Life Insurance, Notes
(144a), 8.00%, 3/1/44 250,000 261
................................................................................
Public Service Electric & Gas, 1st Mtg. Notes
7.00%, 9/1/24 150,000 143
................................................................................
Quorum Health Group, Sr. Sub. Notes, 11.875%, 12/15/02 90,000 99
................................................................................
Rayovac, Sr. Sub. Notes, 10.25%, 11/1/06 50,000 51
................................................................................
Repap Wisconsin, Sr. Secured 2nd Priority Notes
9.875%, 5/1/06 75,000 72
................................................................................
Revlon Worldwide, Sr. Secured Disc. Notes
Zero Coupon, 3/15/98 75,000 65
................................................................................
Rogers Cablesystems, Sr. Secured 2nd Priority Notes
10.00%, 3/15/05 90,000 96
................................................................................
Rouse, Notes, 8.50%, 1/15/03 60,000 64
................................................................................
Safeway, Sr. Sub. Deb., 9.875%, 3/15/07 90,000 106
................................................................................
Shawmut National, Sub. Notes, 7.20%, 4/15/03 60,000 61
................................................................................
Silgan, Sr. Sub. Notes, 11.75%, 6/15/02 90,000 96
................................................................................
Six Flags Theme Parks, Sr. Sub. Notes, STEP, Zero
Coupon, 6/15/98; 12.25%, 6/15/98-6/15/05 100,000 92
................................................................................
Speedy Muffler King, Sr. Notes, 10.875%, 10/1/06 100,000 106
................................................................................
Synthetic Industries, Sr. Sub. Deb., 12.75%, 12/1/02 100,000 110
................................................................................
</TABLE>
25
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Tenneco, Notes, 8.00%, 11/15/99 60,000 $ 63
................................................................................
Texas-New Mexico Power, Deb., 12.50%, 1/15/99 200,000 219
................................................................................
Texas Utilities Electric, 1st Mtg. Bonds, 7.375%,
10/1/25 120,000 118
................................................................................
Trump Atlantic City Associates, 1st Mtg. Notes
11.25%, 5/1/06 50,000 47
................................................................................
Tuboscope Vetco International, Sr. Sub. Notes
10.75%, 4/15/03 100,000 110
................................................................................
United Artists Theatre Circuit, PTC, (144a), 9.30%,
7/1/15 99,176 91
................................................................................
Wal-Mart, Deb., 7.25%, 6/1/13 20,000 21
................................................................................
Westinghouse, Deb., 8.875%, 6/1/01 100,000 106
................................................................................
Total Corporate Bonds (Cost $ 7,957) 8,287
............
Foreign Government Obligations/
Agencies 4.7%
Australian Commonwealth Government Bonds
9.50%, 8/15/03 AUD 10,000 9
................................................................................
Belgian Government Bonds, 7.25%, 4/29/04 BEL 2,900,000 101
................................................................................
Canadian Government Bonds
6.50%, 6/1/04 CAD 30,000 23
............................................................................
9.75%, 6/1/21 CAD 70,000 71
................................................................................
French Government Bonds, 8.25%, 2/27/04 FRF 270,000 62
................................................................................
German Federal Government Bonds
6.50%, 7/15/03 DEM 425,000 295
............................................................................
8.50%, 8/21/00 DEM 145,000 107
................................................................................
Int'l Bank for Reconstruction & Development
6.75%, 3/15/00 JPY 6,000,000 62
................................................................................
Italian Government Bonds, 8.50%, 8/1/04 ITL 275,000,000 193
................................................................................
Japanese Government Bonds, 4.50%, 6/20/03# JPY 40,500,000 405
................................................................................
Kingdom of Denmark, 7.00%, 12/15/04 DKK 120,000 21
................................................................................
Spanish Government Bonds, 8.00%, 5/30/04 ESP 8,000,000 66
................................................................................
Swedish Government Bonds, 6.00%, 2/9/05 SEK 100,000 14
................................................................................
United Kingdom Treasury Notes
8.50%, 12/7/05 GBP 65,000 118
............................................................................
9.00%, 3/3/00 GBP 25,000 44
................................................................................
Total Foreign Government Obligations/Agencies
(Cost $1,431) 1,591
............
</TABLE>
26
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
U.S. Government Mortgage-
Backed Securities 14.7%
Government National Mortgage Assn., I
6.00%, 1/15/24 - 5/15/26 1,239,707 $ 1,185
............................................................................
6.50%, 7/15/23 - 4/15/24 974,816 957
............................................................................
7.50%, 9/15/22 - 12/15/25 1,442,442 1,468
............................................................................
8.00%, 1/15/22 - 11/15/24 685,200 712
............................................................................
8.50%, 9/15/24 368,969 386
............................................................................
10.50%, 2/15 - 10/15/13 16,032 18
............................................................................
Government National Mortgage Assn., II
8.00%, 10/20/25 205,439 213
................................................................................
Total U.S. Government Mortgage-Backed Securities
(Cost $4,689) 4,939
............
U.S. Government Obligations/
Agencies 4.2%
Tennessee Valley Authority
7.25%, 7/15/43 60,000 59
................................................................................
8.25%, 4/15/42 1,189,000 1,355
................................................................................
Total U.S. Government Obligations/Agencies
(Cost $1,233) 1,414
............
Short-Term Investments 9.6%
Commercial Paper 9.6%
Barnett Banks, 5.28%, 12/13/96 700,000 699
................................................................................
Investments in Commercial Paper through a joint
account 5.70 - 5.90%, 12/2/96 835,846 835
................................................................................
Korea Development Bank, 5.35%, 1/23/97 500,000 496
................................................................................
Sandoz, 5.33%, 12/3/96 700,000 700
................................................................................
Tasmanian Public Finance, 5.36%, 12/16/96 500,000 499
................................................................................
Total Short-Term Investments (Cost $3,229) 3,229
............
</TABLE>
27
<PAGE>
T. Rowe Price Personal Strategy Income Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- --------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
99.2% of Net Assets (Cost $30,185) $ 33,337
Other Assets Less Liabilities 273
............
NET ASSETS $ 33,610
------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 260
Accumulated net realized gain/loss - net of distributions 1,590
Net unrealized gain (loss) 3,146
Paid-in-capital applicable to 2,744,153 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares authorized 28,614
............
NET ASSETS $ 33,610
------------
NET ASSET VALUE PER SHARE $ 12.25
------------
</TABLE>
* Non-income producing
# Securities contain some restrictions as to public resale--total of such
securities at year-end amounts to 1.20% of net assets.
PTC Pass-through certificate
STEP Stepped coupon bond
REIT Real Estate Investment Trust
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
1.66% of net assets.
AUD Australian dollar
BEL Belgian franc
CAD Canadian dollar
CHF Swiss franc
DEM German deutschemark
DKK Danish krone
ESP Spanish peseta
FRF French franc
GBP British sterling
HKD Hong Kong dollar
ITL Italian lira
JPY Japanese yen
MYR Malaysian ringgit
NLG Dutch guilder
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
L Local registered shares
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1996
<TABLE>
<CAPTION>
Statement of Net Assets Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Common Stocks 60.8%
FINANCIAL 13.6%
Bank and Trust 5.8%
<S> <C> <C>
Abbey National (GBP) 27,000 $ 316
................................................................................
ABN Amro Holdings (NLG) 3,300 214
................................................................................
Air Liquide (L) (FRF) 1,540 245
................................................................................
BANC ONE 4,800 229
................................................................................
Banca Commerciale Italiana (ITL) 86,000 158
................................................................................
Banco de Bilbao Vizcaya ADR 4,400 222
................................................................................
Banco Frances del Rio ADR 6,700 203
................................................................................
Bank of Boston 3,000 210
................................................................................
Bankgesellschaft Berlin (DEM) 4,000 66
................................................................................
Barclay's (GBP) 23,255 400
................................................................................
Chase Manhattan 11,200 1,058
................................................................................
Citicorp 4,300 470
................................................................................
Deutsche Bank (DEM) 3,000 143
................................................................................
Development Bank of Singapore (SGD) 18,000 232
................................................................................
Dresdner Bank Ag (DEM) 7,000 208
................................................................................
HSBC Holdings (GBP) 22,200 479
................................................................................
J. P. Morgan 2,730 258
................................................................................
KeyCorp 6,250 327
................................................................................
Kredietbank (BEL) 300 98
................................................................................
Mellon Bank 14,950 1,080
................................................................................
National City 9,600 445
................................................................................
NationsBank 3,200 332
................................................................................
Northern Trust 3,000 218
................................................................................
Norwest 11,400 533
................................................................................
Overseas Chinese Bank (SGD) 20,000 242
................................................................................
Schweizerischer Bankgesellschaft (CHF) 300 283
................................................................................
Schweizerischer Bankverein (CHF) 1,200 237
................................................................................
Societe Generale (FRF) 1,600 175
................................................................................
Societe Generale de Belgique (BEL) 1,300 99
................................................................................
Svenska Handelsbank (SEK) 8,000 219
................................................................................
Wells Fargo 600 171
................................................................................
Westpac Banking (AUD) 40,000 239
................................................................................
9,809
................
</TABLE>
29
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Insurance 3.3%
<S> <C> <C>
ACE Limited 9,400 $ 544
................................................................................
American General 12,800 526
................................................................................
American International Group 2,500 287
................................................................................
CKAG Colonia Konzern (DEM) 2,000 154
................................................................................
Mid Ocean Limited 7,900 380
................................................................................
PMI Group 4,400 255
................................................................................
St. Paul Companies 6,400 377
................................................................................
Travelers/Aetna Property Casualty (Class A) 45,900 1,584
................................................................................
UNUM 9,200 654
................................................................................
W. R. Berkley 5,900 311
................................................................................
Willis-Corroon ADR 44,100 480
................................................................................
5,552
................
Financial Services 4.5%
Aames Financial 3,000 129
................................................................................
ADVANTA (Class B) 2,400 101
................................................................................
American Express 14,100 737
................................................................................
Associates First Capital 3,400 164
................................................................................
AXA (FRF) 4,600 276
................................................................................
DCB Holdings Berhad (MYR) 40,000 137
................................................................................
Fannie Mae 20,400 842
................................................................................
Freddie Mac 6,100 697
................................................................................
Green Tree Financial 4,800 201
................................................................................
H&R Block 45,600 1,334
................................................................................
Household International 2,400 227
................................................................................
ING Groep (NLG) 12,184 427
................................................................................
Mercury Finance 41,900 487
................................................................................
Money Store 11,100 339
................................................................................
Sallie Mae 6,850 658
................................................................................
Travelers Group 16,133 726
................................................................................
7,482
................
Total Financial 22,843
................
UTILITIES 4.2%
Telephone Services 2.2%
AT&T 29,750 1,168
................................................................................
BellSouth 8,900 359
................................................................................
</TABLE>
30
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
British Telecommunications ADR 4,000 $ 255
................................................................................
Compania de Telecomunicaciones de Chile ADR 600 57
................................................................................
Hong Kong Telecommunications ADR 8,314 145
................................................................................
SBC Communications 11,300 595
................................................................................
Telecom New Zealand ADR 3,000 252
................................................................................
Telecom Italia (ITL) 95,000 224
................................................................................
Telecom Italia Mobile (ITL) 80,000 188
................................................................................
Telefonica de Espana ADR 3,500 231
................................................................................
Telekom Malaysia (MYR) 17,000 155
................................................................................
Telmex ADR 2,400 73
................................................................................
3,702
................
Electric Utilities 2.0%
Centerior Energy 40,800 438
................................................................................
Electrabel (BEL) 500 117
................................................................................
Empresa Nacional de Electricidad ADR 2,400 160
................................................................................
Empresa Nacional de Electricidad ADS 3,000 49
................................................................................
Entergy 9,800 266
................................................................................
Hong Kong Electric (HKD) 57,000 183
................................................................................
Niagara Mohawk 42,500 372
................................................................................
PECO Energy 20,300 518
................................................................................
Texas Utilities 5,700 225
................................................................................
Unicom 33,300 887
................................................................................
Veba (DEM) 3,300 193
................................................................................
3,408
................
Total Utilities 7,110
................
CONSUMER NONDURABLES 12.2%
Cosmetics 0.3%
International Flavors & Fragrances 7,500 341
................................................................................
Kao (JPY) 21,000 244
................................................................................
585
................
Beverages 0.7%
Coca-Cola 2,000 102
................................................................................
LVMH (FRF) 800 203
................................................................................
PepsiCo 26,500 792
................................................................................
1,097
................
</TABLE>
31
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Food Processing 2.8%
<S> <C> <C>
Cadbury Schweppes ADR 3,600 $ 126
................................................................................
CSM (NLG) 4,000 216
................................................................................
Danisco (DKK) 3,100 174
................................................................................
Eridania Beghin-Say (FRF) 1,200 186
................................................................................
General Mills 5,260 334
................................................................................
Heinz 20,300 769
................................................................................
Interstate Bakeries 7,900 357
................................................................................
McCormick 20,800 515
................................................................................
Nabisco Holdings (Class A) 7,700 298
................................................................................
Nestle (CHF) 400 434
................................................................................
Ralston Purina 7,200 551
................................................................................
Sara Lee 17,300 679
................................................................................
4,639
................
Hospital Supplies/Hospital Management 1.2%
Baxter International 6,100 259
................................................................................
Boston Scientific * 6,800 397
................................................................................
Columbia/HCA Healthcare 15,750 630
................................................................................
Medtronic 5,400 357
................................................................................
Vencor * 10,300 334
................................................................................
1,977
................
Pharmaceuticals 3.9%
American Home Products 11,880 763
................................................................................
Amgen * 4,600 281
................................................................................
Astra (Class B) (SEK) 4,500 211
................................................................................
Bristol-Myers Squibb 2,200 250
................................................................................
Ciba-Geigy (CHF) 300 371
................................................................................
Eli Lilly 4,764 364
................................................................................
Gehe (DEM) 2,500 154
................................................................................
Glaxo Wellcome ADR 6,700 220
................................................................................
Johnson & Johnson 9,000 478
................................................................................
Merck 5,800 481
................................................................................
Perrigo * 35,600 334
................................................................................
Pfizer 13,160 1,180
................................................................................
Pharmacia & Upjohn 4,060 157
................................................................................
Schering-Plough 4,800 342
................................................................................
SmithKline Beecham ADR 9,800 675
................................................................................
Takeda Chemical Industries (JPY) 17,000 333
................................................................................
6,594
................
</TABLE>
32
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Health Care Services 0.6%
<S> <C> <C>
Altana (DEM) 250 $ 210
................................................................................
Apria Healthcare * 9,800 176
................................................................................
PacifiCare Health Systems (Class B) * 4,500 374
................................................................................
United HealthCare 5,900 255
................................................................................
1,015
................
Miscellaneous Consumer Products 2.7%
Benetton Group (ITL) 14,000 178
................................................................................
Bridgestone (JPY) 20,000 369
................................................................................
Colgate-Palmolive 5,250 486
................................................................................
CUC International * 9,750 257
................................................................................
Grand Metropolitan ADR 3,300 105
................................................................................
Huhtamaki (FIM) 1,500 65
................................................................................
Jones Apparel Group * 8,300 255
................................................................................
Kuraray (JPY) 29,000 280
................................................................................
Lion Nathan (NZD) 74,000 190
................................................................................
Newell 5,900 183
................................................................................
Philip Morris 11,550 1,191
................................................................................
Procter & Gamble 4,400 479
................................................................................
Richfood Holdings 11,000 289
................................................................................
Tambrands 2,140 91
................................................................................
UST 3,900 127
................................................................................
4,545
................
Total Consumer Nondurables 20,452
................
CONSUMER SERVICES 5.8%
General Merchandisers 1.2%
Carrefour (FRF) 200 124
................................................................................
Dayton Hudson 10,500 408
................................................................................
Marui (JPY) 11,000 209
................................................................................
Pinault Printemps (FRF) 300 119
................................................................................
Tesco (GBP) 45,482 259
................................................................................
TJX 7,600 343
................................................................................
Wal-Mart 20,400 520
................................................................................
1,982
................
Specialty Merchandisers 1.7%
Circuit City Stores 3,000 100
................................................................................
Eckerd * 10,700 369
................................................................................
</TABLE>
33
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Federated Department Stores * 12,900 $ 440
................................................................................
General Nutrition * 8,300 144
................................................................................
Home Depot 4,800 250
................................................................................
Kohl's * 7,900 315
................................................................................
Revco * 13,400 462
................................................................................
Safeway * 8,100 329
................................................................................
Staples * 5,700 113
................................................................................
Tupperware 7,800 414
................................................................................
2,936
................
Entertainment and Leisure 2.1%
Boston Chicken * 5,900 229
................................................................................
Carnival (Class A) 6,600 209
................................................................................
Disney 7,100 524
................................................................................
Hutchison Whampoa (HKD) 90,000 695
................................................................................
ITT * 10,800 498
................................................................................
McDonald's 10,000 468
................................................................................
Reader's Digest (Class B) 16,440 590
................................................................................
Sharp (JPY) 16,000 250
................................................................................
3,463
................
Media and Communications 0.8%
Catalina Marketing * 4,000 204
................................................................................
Elsevier (NLG) 12,000 205
................................................................................
R. R. Donnelly 7,100 238
................................................................................
Time Warner 3,100 126
................................................................................
Vodafone ADR 13,700 592
................................................................................
1,365
................
Total Consumer Services 9,746
................
CONSUMER CYCLICALS 3.6%
Automobiles and Related 0.7%
Cycle & Carriage (SGD) 22,000 249
................................................................................
Honda ADR 5,000 297
................................................................................
Lear * 3,100 111
................................................................................
Lucasvarity ADR 14,580 618
................................................................................
1,275
................
Building and Real Estate 1.3%
Cheung Kong Holdings (HKD) 67,000 589
................................................................................
City Developments (SGD) 15,000 133
................................................................................
</TABLE>
34
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
DBS Land (SGD) 20,000 $ 71
................................................................................
Federal Realty Investment Trust, REIT 30,900 804
................................................................................
Simon DeBartolo Group, REIT 19,072 522
................................................................................
2,119
................
Miscellaneous Consumer Durables 1.6%
Corning 30,700 1,244
................................................................................
Eastman Kodak 5,400 438
................................................................................
Masco 2,500 91
................................................................................
Oce Van Der Grinten NV (NLG) 1,800 196
................................................................................
Ricoh (JPY) 34,000 364
................................................................................
Roussel UCLAF (FRF) 1,100 288
................................................................................
2,621
................
Total Consumer Cyclicals 6,015
................
TECHNOLOGY 4.2%
Electronic Components 0.7%
Intel 3,300 418
................................................................................
Linear Technology 3,400 161
................................................................................
Maxim Integrated Products * 6,600 306
................................................................................
Xilinx * 6,300 277
................................................................................
1,162
................
Electronic Systems 0.7%
ADT * 7,400 152
................................................................................
Hewlett-Packard 3,200 172
................................................................................
Honeywell 10,150 697
................................................................................
Nokia ADR 1,600 90
................................................................................
1,111
................
Information Processing 0.6%
Hitachi ADR 1,200 114
................................................................................
IBM 5,830 929
................................................................................
1,043
................
Office Automation 0.2%
Ceridian * 8,300 400
................................................................................
400
................
Specialized Computer 0.1%
Silicon Graphics * 5,700 113
................................................................................
113
................
</TABLE>
35
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Telecommunications Equipment 1.1%
<S> <C> <C>
3Com * 5,300 $ 399
................................................................................
Cisco Systems * 4,200 285
................................................................................
LM Ericsson (Class B) ADR 15,500 478
................................................................................
MCI 5,900 180
................................................................................
Telecomunicacoes Brasileiras ADR 5,600 424
................................................................................
1,766
................
Aerospace and Defense 0.8%
AlliedSignal 10,640 779
................................................................................
Boeing 3,400 338
................................................................................
Lockheed Martin 3,300 299
................................................................................
1,416
................
Total Technology 7,011
................
CAPITAL EQUIPMENT 3.2%
Electrical Equipment 2.2%
ABB AG (CHF) 200 250
................................................................................
Canon (JPY) 9,000 190
................................................................................
Emerson Electric 3,700 363
................................................................................
GE 13,300 1,383
................................................................................
Hubbell (Class B) 11,700 492
................................................................................
Matsushita Electric Works (JPY) 22,000 205
................................................................................
Mitsubishi Electric (JPY) 23,000 132
................................................................................
Siemens (DEM) 5,000 241
................................................................................
Tomkins ADR 9,000 152
................................................................................
Tyco International 6,600 361
................................................................................
3,769
................
Machinery 1.0%
Danaher 9,900 443
................................................................................
Deere 3,440 153
................................................................................
GKN (GBP) 9,000 169
................................................................................
Man (DEM) 900 212
................................................................................
S I G Schweis (CHF) 80 193
................................................................................
Teleflex 7,100 351
................................................................................
Valmet (FIM) 4,000 66
................................................................................
1,587
................
Total Capital Equipment 5,356
................
</TABLE>
36
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
BUSINESS SERVICES AND
TRANSPORTATION 4.1%
Computer Service and Software 2.4%
<S> <C> <C>
Adobe Systems 4,400 $ 174
................................................................................
Ascend Communications * 3,200 228
................................................................................
Automatic Data Processing 8,300 356
................................................................................
BMC Software * 12,600 551
................................................................................
Electronic Data Systems 5,300 256
................................................................................
First Data 13,484 538
................................................................................
Informix * 7,700 182
................................................................................
Medic Computer Systems * 5,600 190
................................................................................
Microsoft * 1,900 298
................................................................................
National Data 5,900 235
................................................................................
Oracle * 6,225 306
................................................................................
Reynolds & Reynolds 7,600 211
................................................................................
SunGard Data Systems * 6,300 265
................................................................................
Synopsys * 3,600 161
................................................................................
3,951
................
Distribution Services 0.2%
Alco Standard 8,100 419
................................................................................
419
................
Environmental 0.1%
USA Waste Services * 7,600 245
................................................................................
245
................
Transportation Services 0.3%
Mitsubishi Heavy Industries (JPY) 30,000 245
................................................................................
United Engineers (MYR) 23,000 208
................................................................................
453
................
Miscellaneous Business Services 0.5%
BAA (GBP) 17,000 140
................................................................................
Sime Darby (MYR) 40,000 150
................................................................................
Wallace Computer Sevices 7,900 277
................................................................................
WMX Technologies 9,260 333
................................................................................
900
................
Airlines 0.4%
AMR * 3,140 286
................................................................................
KLM (NLG) 6,000 155
................................................................................
Singapore Airlines (SGD) 26,000 245
................................................................................
686
................
</TABLE>
37
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Railroads 0.2%
Burlington Northern Santa Fe 3,500 $ 315
..............................................................................
315
.............
Total Business Services and Transportation 6,969
.............
ENERGY 4.5%
Energy Services 1.4%
BJ Services * 6,900 330
..............................................................................
Cooper Cameron * 6,300 414
..............................................................................
Elf Aquitaine ADR 5,000 219
..............................................................................
Halliburton 9,500 572
..............................................................................
Schlumberger 6,430 669
..............................................................................
Total ADR 3,000 121
..............................................................................
2,325
.............
Integrated Petroleum - Domestic 1.8%
Atlantic Richfield 7,300 1,016
..............................................................................
British Petroleum ADR 8,740 1,213
..............................................................................
Unocal 4,600 187
..............................................................................
USX-Marathon 25,600 585
..............................................................................
3,001
.............
Integrated Petroleum - International 1.3%
ENI S.P.A. ADR 5,000 263
..............................................................................
Exxon 2,830 268
..............................................................................
Mobil 5,500 665
..............................................................................
Repsol ADR 3,700 136
..............................................................................
Royal Dutch Petroleum ADR 2,500 425
..............................................................................
Shell Transport & Trading ADR 2,100 209
..............................................................................
Texaco 3,100 307
..............................................................................
2,273
.............
Total Energy 7,599
.............
PROCESS INDUSTRIES 4.1%
Diversified Chemicals 0.6%
DuPont 6,500 613
..............................................................................
Hercules 2,200 107
..............................................................................
Monsanto 2,200 87
..............................................................................
Union Carbide 3,600 166
..............................................................................
973
.............
</TABLE>
38
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
Specialty Chemicals 1.8%
<S> <C> <C>
3M 3,500 $ 293
..............................................................................
A. Schulman 17,300 415
..............................................................................
Akzo Nobel (NLG) 1,600 212
..............................................................................
BASF AG (DEM) 6,000 222
..............................................................................
Bayer AG (DEM) 5,000 202
..............................................................................
Great Lakes Chemical 20,140 1,080
..............................................................................
Pall 7,300 191
..............................................................................
Sumitomo Chemical (JPY) 40,000 174
..............................................................................
Technip (FRF) 2,000 188
..............................................................................
2,977
.............
Paper and Paper Products 1.5%
Dai Nippon Printng (JPY) 15,000 274
..............................................................................
International Paper 10,500 446
..............................................................................
James River 19,700 631
..............................................................................
Kimberly-Clark 10,500 1,026
..............................................................................
Willamette Industries 2,200 149
..............................................................................
2,526
.............
Forest Products 0.1%
Georgia-Pacific 3,000 218
..............................................................................
218
.............
Building and Construction 0.1%
Holderbk Fn Glarus (CHF) 200 144
..............................................................................
144
.............
Total Process Industries 6,838
.............
BASIC MATERIALS 1.2%
Metals 0.7%
Alcoa 3,400 216
..............................................................................
Nucor 10,000 544
..............................................................................
Reynolds Metals 5,700 339
..............................................................................
1,099
.............
Mining 0.1%
CRA Limited (AUD) 12,000 200
..............................................................................
200
.............
</TABLE>
39
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Miscellaneous Materials 0.4%
Crown Cork & Seal 10,000 $ 530
..............................................................................
Malayan Cement (MYR) 59,000 138
..............................................................................
668
.............
Total Basic Materials 1,967
.............
MISCELLANEOUS 0.1%
Conglomerates 0.1%
LONRHO (GBP) 40,000 91
..............................................................................
Orkla (Class A) (NOK) 1,500 100
..............................................................................
Total Miscellaneous 191
.............
Total Common Stocks (Cost $90,869) 102,097
.............
Corporate Bonds 17.0%
Abbey National, 6.69%, 10/17/05 565,000 568
..............................................................................
Agricultural Minerals and Chemicals, Sr. Notes
10.75%, 9/30/03 250,000 268
..............................................................................
Airplane Pass Through Trust, 10.875%, 3/15/19 250,000 279
..............................................................................
Allied Waste North America, Sr. Sub. Notes
(144a), 10.25%, 12/1/06 150,000 154
..............................................................................
Alpine Group, Sr. Secured Notes, 12.25%, 7/15/03 125,000 136
..............................................................................
American Airlines, PTC, 9.71%, 1/2/07 44,648 51
..............................................................................
American Safety Razor, Sr. Notes, 9.875%, 8/1/05 250,000 269
..............................................................................
American Standard, Sr. Deb., 11.375%, 5/15/04 250,000 271
..............................................................................
Ametek, Sr. Notes, 9.75%, 3/15/04 20,000 21
..............................................................................
AMR , Deb., 9.00%, 9/15/16 100,000 113
..............................................................................
Associates Corporation, Sr. Notes, 5.25%, 3/30/00 700,000 681
..............................................................................
Bally's Park Place, 1st Mtg. Notes, 9.25%, 3/15/04 50,000 55
..............................................................................
Bank of Nova Scotia, Sub. Notes, 6.25%, 9/15/08 37,000 36
..............................................................................
BE Aerospace, Sr. Sub. Notes, 9.875%, 2/1/06 250,000 260
..............................................................................
Bear Stearns, Sr. Notes, 8.25%, 2/1/02 150,000 162
..............................................................................
BF Saul, REIT, Sr. Secured Notes, 11.625%, 4/1/02 150,000 162
..............................................................................
Boise Cascade, Deb., 7.35%, 2/1/16 60,000 58
..............................................................................
Celestica International, Sr. Gtd. Sub. Notes
(144a), 10.50%, 12/31/06 250,000 258
..............................................................................
</TABLE>
40
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Celulosa Arauco y Constitucion, Notes, 7.00%, 12/15/07 400,00 $ 399
.......................................................................................
Chancellor Broadcasting, Sr. Sub. Notes, 9.375%, 10/1/04 250,000 249
.......................................................................................
Citicorp, Sub. Notes, 7.75%, 6/15/06 500,000 537
.......................................................................................
Coca-Cola Bottling Group, Sr. Sub. Notes
9.00%, 11/15/03 150,000 153
.......................................................................................
Coinmach, Sr. Notes, 11.75%, 11/15/05 250,000 269
.......................................................................................
Coltec Industries, Sr. Sub. Notes, 10.25%, 4/1/02 125,000 133
.......................................................................................
Communications & Power Industries, Sr. Sub. Notes
12.00%, 8/1/05 250,000 271
.......................................................................................
Consolidated Cigar, Sr. Sub. Notes, 10.50%, 3/1/03 250,000 260
.......................................................................................
Container Corporation of America, 9.75%, 4/1/03 250,000 261
.......................................................................................
Continental Airlines, PTC, 6.94%, 10/15/13 700,000 709
.......................................................................................
Courtyard by Marriott II, Sr. Secured Notes
10.75%, 2/1/08 100,000 106
.......................................................................................
Cox Communications, Deb., 7.25%, 11/15/15 600,000 600
.......................................................................................
Dade International, Sr. Sub. Notes, 11.125%, 5/1/06 250,000 270
.......................................................................................
Daimler-Benz Auto Grantor Trust, 3.90%, 10/15/98 6,003 6
.......................................................................................
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 250,000 250
.......................................................................................
Discover Card Mount 1, 7.75%, 4/16/02 100,000 104
.......................................................................................
Doane Products, Sr. Notes, 10.625%, 3/1/06 250,000 266
.......................................................................................
Dominion Textile USA, Gtd. Sr. Notes, 9.25%, 4/1/06 125,000 128
.......................................................................................
Dr Pepper Bottling, Sr. Disc. Notes, STEP, Zero Coupon
2/15/98; 11.625%, 2/15/98-2/15/03 250,000 231
.......................................................................................
Dual Drilling, Sr. Sub. Notes, 9.875%, 1/15/04 250,000 270
.......................................................................................
El Paso Electric, 1st Mtg. Notes, 8.90%, 2/1/06 250,000 264
.......................................................................................
Enhance Financial Services Group, Deb., 6.75%, 3/1/03 500,000 503
.......................................................................................
Fairfax Financial Holdings Limited, Notes
8.25%, 10/1/15 250,000 267
.......................................................................................
Falcon Drilling, Sr. Notes, 8.875%, 3/15/03 250,000 253
.......................................................................................
First Federal Financial, Notes, 11.75%, 10/1/04 250,000 265
.......................................................................................
First National Bank of Boston, Sub. Notes, 8.00%, 9/15/04 700,000 750
.......................................................................................
First USA Bank Wilmington, Sr. Notes, 5.85%, 2/22/01 500,000 486
.......................................................................................
Fleet Norstar Financial Group, Sub. Notes, 9.90%, 6/15/01 100,000 114
.......................................................................................
Flores & Rucks, Sr. Sub. Notes, 9.75%, 10/1/06 250,000 263
.......................................................................................
Florida Power, 1st Mtg. Notes, 6.125%, 3/1/03 210,000 206
.......................................................................................
Ford Motor Credit, Notes
5.80%, 5/11/98 50,000 50
.......................................................................................
7.60%, 3/29/00 50,000 52
.......................................................................................
</TABLE>
41
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Frontiervision Operating Partners, Sr. Sub. Notes
11.00%, 10/15/06 250,000 $ 249
.......................................................................................
Fundy Cable, Sr. Secured 2nd Priority Notes
11.00%, 11/15/05 200,000 210
.......................................................................................
Gaylord Container, Sr. Sub. Deb., 12.75%, 5/15/05 175,000 192
.......................................................................................
General Electric Capital, Deb., 8.625%, 6/15/08 100,000 117
.......................................................................................
GNF, 1st Mtg. Notes, 10.625%, 4/1/03 250,000 276
.......................................................................................
Government Trust Certificates, 9.25%, 11/15/01 65,090 70
.......................................................................................
Harrah's, Sr. Sub. Notes, 10.875%, 4/15/02 100,000 107
.......................................................................................
Hayes Wheels International, Sr. Sub. Notes
11.00%, 7/15/06 250,000 268
.......................................................................................
Haynes International, Sr. Notes, 11.625%, 9/1/04 125,000 131
.......................................................................................
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 250,000 269
.......................................................................................
HMC Acquisition Properties, Sr. Notes, 9.00%, 12/15/07 25,000 25
.......................................................................................
Host Marriott Travel Plazas, Sr. Notes, 9.50%, 5/15/05 100,000 103
.......................................................................................
IBM, Notes, 6.375%, 11/1/97 1,000,000 1,005
.......................................................................................
International Knife & Saw, Sr. Sub. Notes
(144a), 11.375%, 11/15/06 250,000 258
.......................................................................................
Intertek Finance, Sr. Sub. Notes, (144a), 10.25%, 11/1/06 150,000 154
.......................................................................................
Jordan Industries, Sr. Notes, 10.375%, 8/1/03 250,000 244
.......................................................................................
K & F Industries, Sr. Sub. Notes, 10.375%, 9/1/04 200,000 211
.......................................................................................
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 250,000 273
.......................................................................................
Lehman Brothers Holdings, Notes, 7.41%, 5/25/99 100,000 102
.......................................................................................
Lenfest Communications, Sr. Notes, 8.375%, 11/1/05 30,000 29
.......................................................................................
Lilly, Eli & Company, Notes, 7.125%, 6/1/25 700,000 718
.......................................................................................
Loehmann's, Sr. Notes, 11.875%, 5/15/03 100,000 108
.......................................................................................
Long Island Lighting
Deb.
7.05%, 3/15/03 75,000 73
...............................................................................
Gen. and Ref. Bonds
8.75%, 2/15/97 50,000 50
.......................................................................................
MAFCO, Sr. Sub. Notes, 11.875%, 11/15/02 100,000 105
.......................................................................................
Marriott International, Sr. Notes, 6.75%, 12/15/03 600,000 595
.......................................................................................
Maxus Energy, Sr. Notes, 9.375%, 11/1/03 100,000 102
.......................................................................................
Mettler Toledo, Gtd. Sr. Sub. Notes, 9.75%, 10/1/06 250,000 261
.......................................................................................
ML Trust V, 6.00%, 3/20/18 14,393 14
.......................................................................................
Northrop-Grumman, Notes, 7.00%, 3/1/06 200,000 202
.......................................................................................
Old Dominion Electric Cooperative
1st Mtg. Notes, 7.27%, 12/1/97 34,000 34
.......................................................................................
</TABLE>
42
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Outdoor Systems, Sr. Sub. Notes, 9.375%, 10/15/06 250,000 $ 251
.......................................................................................
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 250,000 267
.......................................................................................
Owens-Illinois, Sr. Deb., 11.00%, 12/1/03 250,000 277
.......................................................................................
Paine Webber Group, Notes
6.82%, 8/1/98 100,000 102
...............................................................................
8.25%, 5/1/02 500,000 535
.......................................................................................
Pathmark Stores, Sr. Sub. Notes, 9.625%, 5/1/03 250,000 246
.......................................................................................
Petroleum Heat & Power, Sub. Notes
10.125%, 4/1/03 50,000 50
...............................................................................
12.25%, 2/1/05 200,000 224
.......................................................................................
Portola Packaging, Sr. Notes, 10.75%, 10/1/05 215,000 224
.......................................................................................
Praxair, Deb., 8.70%, 7/15/22 700,000 758
.......................................................................................
Principal Mutual Life Insurance, (144a), Notes
8.00%, 3/1/44 100,000 104
.......................................................................................
Rayovac, Sr. Sub. Notes, 10.25%, 11/1/06 250,000 257
.......................................................................................
Repap Wisconsin, Sr. Secured 2nd Priority Notes
9.875%, 5/1/06 75,000 72
.......................................................................................
Resolution Funding, 8.125%, 10/15/19 210,000 245
.......................................................................................
Revlon Worldwide, Sr. Secured Disc. Notes
Zero Coupon, 3/15/98 250,000 216
.......................................................................................
Rio Hotel & Casino, Sr. Sub. Notes, 10.625%, 7/15/05 250,000 264
.......................................................................................
Rogers Cablesystems, Sr. Secured 2nd Priority Notes
10.00%, 3/15/05 250,000 267
.......................................................................................
Rouse, Notes, 8.50%, 1/15/03 25,000 26
.......................................................................................
Rowan Companies, Sr. Notes, 11.875%, 12/1/01 200,000 213
.......................................................................................
Sea Containers Ltd., Sr. Sub. Deb., 12.50%, 12/1/04 135,000 148
.......................................................................................
Sears Credit Account Master Trust, 8.10%, 6/15/04 100,000 106
.......................................................................................
Shawmut National, Sub. Notes, 7.20%, 4/15/03 25,000 26
.......................................................................................
Showboat, 1st Mtg. Bonds, 9.25%, 5/1/08 250,000 244
.......................................................................................
Silgan, Sr. Sub. Notes, 11.75%, 6/15/02 250,000 267
.......................................................................................
Six Flags Theme Parks, Sr. Sub Notes, STEP, Zero Coupon
6/15/98; 12.25%, 6/15/98-6/15/05 250,000 230
.......................................................................................
Speedy Muffler King, Sr. Notes, 10.875%, 10/1/06 250,000 266
.......................................................................................
Standard Credit Card Master Trust, 5.50%, 2/7/00 100,000 99
.......................................................................................
Synthetic Industries, Sr. Sub. Deb., 12.75%, 12/1/02 250,000 276
.......................................................................................
Tele-Communications, Sr. Notes
8.25%, 1/15/03 100,000 101
...............................................................................
8.75%, 2/15/23 500,000 467
.......................................................................................
</TABLE>
43
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Tenneco, 8.00%, 11/15/99 25,000 $ 26
.......................................................................................
Texas Bottling Group, Sr. Sub. Notes, 9.00%, 11/15/03 100,000 101
.......................................................................................
Texas-New Mexico Power, 12.50%, 1/15/99 120,000 131
.......................................................................................
Texas Utilities Electric, 1st Mtg. Bonds
7.375%, 10/1/25 315,000 311
...............................................................................
7.875%, 4/1/24 30,000 31
...............................................................................
8.00%, 6/1/02 100,000 107
.......................................................................................
Time Warner Entertainment L P, 8.375%, 3/15/23 100,000 104
.......................................................................................
Trump Atlantic City Associates, 1st Mtg. Notes
11.25%, 5/1/06 250,000 236
.......................................................................................
Tuboscope Vetco International, Sr. Sub. Notes
10.75%, 4/15/03 100,000 110
.......................................................................................
UNC, Sr. Sub. Notes, 11.00%, 6/1/06 250,000 267
.......................................................................................
United Air Lines, PTC, 9.20%, 3/22/08 230,491 257
.......................................................................................
United Artists Theatre Circuit, PTC, (144a), 9.30%, 7/1/15 247,940 228
.......................................................................................
Wal-Mart, Deb., 7.25%, 6/1/13 60,000 62
.......................................................................................
Westamerica Banc, Sub. Notes, 6.99%, 9/30/03 250,000 250
.......................................................................................
Westinghouse Electric, Deb., 8.875%, 6/1/01 100,000 106
.......................................................................................
Total Corporate Bonds (Cost $ 27,827) 28,457
.............
<CAPTION>
Foreign Government Obligations/
Agencies 3.2%
<S> <C> <C> <C>
Australian Commonwealth Government Bonds
9.50%, 8/15/03 AUD 10,000 9
................................................................................................
Belgian Government Bonds, 7.25%, 4/29/04 BEL 750,000 26
................................................................................................
Canadian Government Bonds
6.50%, 6/1/04 CAD 9,000 7
........................................................................................
8.50%, 4/1/02 CAD 430,000 367
........................................................................................
9.75%, 6/1/21 CAD 30,000 30
................................................................................................
European Investor Bank, 4.625%, 2/26/03 JPY 173,000,000 1,748
................................................................................................
French Government Bonds
8.25%, 2/27/04 FRF 324,000 74
........................................................................................
8.50%, 11/25/02 FRF 4,766,000 1,087
................................................................................................
German Federal Government Bonds
6.50%, 7/15/03 DEM 80,000 56
........................................................................................
8.375%, 5/21/01 DEM 1,400,000 1,046
........................................................................................
8.50%, 8/21/00 DEM 65,000 48
................................................................................................
</TABLE>
44
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ----------------------------------------------------------------------------------------------
In thousands
<S> <C> <C> <C>
Int'l Bank for Reconstruction & Development,
6.75%, 3/15/00 JPY 2,000,000 $ 21
..............................................................................................
Italian Government Bonds, 8.50%, 8/1/04 ITL 100,000,000 70
..............................................................................................
Japanese Government Bonds, 4.50%, 6/20/03 # JPY 15,700,000 157
..............................................................................................
Kingdom of Denmark, 7.00%, 12/15/04 DKK 55,000 10
..............................................................................................
Spanish Government Bonds, 8.00%, 5/30/04 ESP 100,000 1
..............................................................................................
Swedish Government Bonds, 6.00%, 2/9/05 SEK 100,000 14
..............................................................................................
United Kingdom Treasury Notes
8.00%, 6/10/03 GBP 303,000 531
......................................................................................
8.50%, 12/7/05 GBP 10,000 18
......................................................................................
9.00%, 3/3/00 GBP 24,000 43
..............................................................................................
Total Foreign Government Obligations/Agencies (Cost $5,155) 5,363
<CAPTION>
U.S. Government Mortgage-
Backed Securities 13.0%
Federal Home Loan Mortgage Corp.
6.00%, 4/1/24 - 11/1/25 253,390 241
......................................................................................
6.50%, 10/1 - 12/1/08 323,516 324
......................................................................................
7.00%, 10/1/08 - 10/1/25 141,324 141
......................................................................................
8.00%, 1/1/25 199,088 206
......................................................................................
9.00%, 11/1/04 27,415 28
......................................................................................
9.10%, 10/15/19 190 0
..............................................................................................
Federal National Mortgage Assn.
6.00%, 9/1/08 79,317 78
......................................................................................
6.50%, 3/1/09 - 8/1/23 246,905 245
......................................................................................
7.00%, 8/1/23 - 12/1/25 735,840 732
......................................................................................
7.50%, 11/1/07 127,516 131
......................................................................................
8.00%, 5/1/07 - 5/1/10 163,520 169
......................................................................................
8.50%, 8/1/06 - 11/1/21 123,422 129
......................................................................................
9.00%, 5/1/01 62,144 65
..............................................................................................
Remic, 8.00%, 2/25/07 100,000 106
..............................................................................................
Government National Mortgage Assn., I
6.50%, 12/15/23 - 4/15/26 3,859,736 3,757
......................................................................................
7.00%, 4/15/24 - 4/15/26 10,811,536 10,755
......................................................................................
7.50%, 2/15/16 - 6/15/26 2,451,007 2,500
......................................................................................
8.00%, 3/15/22 - 10/20/25 1,183,964 1,227
......................................................................................
</TABLE>
45
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Government National Mortgage Assn., II
7.00%, 1/15/26 235,613 $ 234
....................................................................................
7.50%, 2/15 - 3/15/26 756,375 768
.............................................................................................
Total U.S. Government Mortgage-Backed Securities (Cost $21,438) 21,836
.............
U.S. Government Obligations/
Agencies 2.4%
Tennessee Valley Authority
6.875%, 12/15/43 3,340,000 3,186
.....................................................................................
7.25%, 7/15/43 40,000 40
.............................................................................................
U.S. Treasury Bonds
7.25%, 5/15/16 - 8/15/22 795,000 867
.............................................................................................
Total U.S. Government Obligations/Agencies (Cost $4,003) 4,093
.............
Short-Term Investments 2.9%
Certificates of Deposit 1.2%
Creditanstalt Bankverein, 5.29%, 12/6/96 1,000,000 1,000
.............................................................................................
Deutsche Bank, 5.62%, 12/16/96 1,000,000 1,000
.............................................................................................
2,000
.............
Commercial Paper 1.7%
American Express Credit, 5.27%, 12/5/96 1,000,000 999
.............................................................................................
Barnett Banks, 5.28%, 12/13/96 1,000,000 998
.............................................................................................
Investments in Commercial Paper through a joint account
5.70-5.90%, 12/2/96 163,797 164
.............................................................................................
Market Street Funding, 4(2), 5.43%, 12/5/96 750,000 750
.............................................................................................
2,911
.............
Total Short-Term Investments (Cost $4,911) 4,911
.............
</TABLE>
46
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- -----------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
99.3% of Net Assets (Cost $154,203) $ 166,757
Other Assets Less Liabilities 1,178
...............
NET ASSETS $ 167,935
---------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 859
Accumulated net realized gain/loss - net of distributions 3,357
Net unrealized gain (loss) 12,528
Paid-in-capital applicable to 12,274,726 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares authorized 151,191
...............
NET ASSETS $ 167,935
---------------
NET ASSET VALUE PER SHARE $ 13.68
---------------
</TABLE>
* Non-income producing
# Securities contain some restrictions as to public resale--total of such
securities at year-end amounts to .09% of net assets.
PTC Pass-through certificate
STEP Stepped coupon bond
REIT Real Estate Investment Trust
4(2) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under section 4.2 of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors."
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
.69% of net assets.
AUD Australian dollar
BEL Belgian franc
CAD Canadian dollar
CHF Swiss franc
DEM German deutschemark
DKK Danish krone
ESP Spanish peseta
FIM Finnish mark
FRF French franc
GBP British sterling
HKD Hong Kong dollar
ITL Italian lira
JPY Japanese yen
MYR Malaysian ringgit
NLG Dutch guilder
NOK Norwegian krone
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
L Local registered shares
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------------
Unaudited November 30, 1996
<TABLE>
<CAPTION>
Statement of Net Assets Shares/Par Value
- -------------------------------------------------------------------------
In thousands
Common Stocks 79.1%
FINANCIAL 17.5%
<S> <C> <C>
Bank and Trust 7.2%
Abbey National (GBP) 8,000 $ 94
.........................................................................
ABN Amro Holdings (NLG) 900 58
.........................................................................
Air Liquide (L) (FRF) 330 53
.........................................................................
BANC ONE 1,400 67
.........................................................................
Banca Commericiale Italiana (ITL) 27,000 49
.........................................................................
Banco de Bilbao Vizcaya ADR 1,000 50
.........................................................................
Banco Frances del Rio ADR 2,000 60
.........................................................................
Bank of Boston 900 63
.........................................................................
Barclay's (GBP) 6,000 103
.........................................................................
Chase Manhattan 3,200 302
.........................................................................
Citicorp 1,400 153
.........................................................................
Deutsche Bank (DEM) 1,500 71
.........................................................................
Development Bank of Singapore (SGD) 5,000 65
.........................................................................
HSBC Holdings (GBP) 7,700 166
.........................................................................
J. P. Morgan 1,430 135
.........................................................................
KeyCorp 1,750 92
.........................................................................
Kredietbank (BEL) 200 66
.........................................................................
Mellon Bank 4,150 300
.........................................................................
National City 3,000 139
.........................................................................
NationsBank 900 93
.........................................................................
Northern Trust 900 65
.........................................................................
Norwest 3,400 159
.........................................................................
Overseas Chinese Bank (SGD) 6,000 73
.........................................................................
Schweizerischer Bankverein (CHF) 400 79
.........................................................................
Societe Generale (FRF) 500 55
.........................................................................
Societe Generale de Belgique (BEL) 300 23
.........................................................................
Svenska Handelsbank (SEK) 2,000 55
.........................................................................
Union Bank of Switzerland (CHF) 100 94
.........................................................................
Wells Fargo 200 57
.........................................................................
Westpac Banking (AUD) 9,000 54
.........................................................................
2,893
..............
Insurance 4.4%
ACE Limited 3,100 179
.........................................................................
American General 4,000 165
.........................................................................
</TABLE>
48
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
<S> <C> <C>
American International Group 800 $ 92
.........................................................................
CKAG Colonia Konzern (DEM) 1,000 77
.........................................................................
Mid Ocean Limited 2,300 111
.........................................................................
PMI Group 1,300 75
.........................................................................
St. Paul Companies 2,000 118
.........................................................................
Travelers/Aetna Property Casualty (Class A) 13,100 452
.........................................................................
UNUM 2,600 185
.........................................................................
W. R. Berkley 1,800 95
.........................................................................
Willis-Corroon ADR 19,900 216
.........................................................................
1,765
.............
Financial Services 5.9%
Aames Financial 900 39
.........................................................................
ADVANTA 700 30
.........................................................................
American Express 4,100 214
.........................................................................
Associates First Capital 1,100 53
.........................................................................
AXA (FRF) 1,200 72
.........................................................................
DCB Holdings Berhad (MYR) 12,000 41
.........................................................................
Fannie Mae 5,900 243
.........................................................................
Freddie Mac 1,800 206
.........................................................................
Green Tree Financial 1,500 63
.........................................................................
H&R Block 17,400 509
.........................................................................
Household International 700 66
.........................................................................
ING Groep (NLG) 3,050 107
.........................................................................
Mercury Finance 20,000 232
.........................................................................
Money Store 3,300 101
.........................................................................
Sallie Mae 2,050 197
.........................................................................
Travelers Group 5,066 228
.........................................................................
2,401
.............
Total Financial 7,059
.............
UTILITIES 6.2%
Telephone Services 3.3%
AT&T 11,850 465
.........................................................................
BellSouth 5,000 202
.........................................................................
British Telecommunications PLC ADR 1,200 76
.........................................................................
Compania de Telecommunicaciones de Chile ADR 200 19
.........................................................................
Hong Kong Telecommunications ADR 2,232 39
.........................................................................
</TABLE>
49
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
<S> <C> <C>
SBC Communications 3,600 $ 189
.........................................................................
Telecom New Zealand ADR 800 67
.........................................................................
Telecom Italia (ITL) 15,000 35
.........................................................................
Telecom Italia Mobile (ITL) 15,000 35
.........................................................................
Telefonica de Espana ADR 1,600 106
.........................................................................
Telekom Malaysia (MYR) 5,000 46
.........................................................................
Telmex ADR 1,800 55
.........................................................................
1,334
............
Electric Utilities 2.9%
Centerior Energy 11,500 124
.........................................................................
Electrabel (BEL) 100 23
.........................................................................
Empresa Nacional de Electricidad ADR 1,000 17
.........................................................................
Empresa Nacional de Electricidad ADS 600 40
.........................................................................
Entergy 2,700 73
.........................................................................
Hong Kong Electric (HKD) 16,000 51
.........................................................................
Niagara Mohawk 12,000 105
.........................................................................
Ohio Edison 5,000 115
.........................................................................
PECO Energy 8,000 204
.........................................................................
Texas Utilities 1,600 63
.........................................................................
Unicom 11,000 293
.........................................................................
Veba (DEM) 1,000 59
.........................................................................
1,167
............
Total Utilities 2,501
............
CONSUMER NONDURABLES 15.4%
Cosmetics 0.5%
International Flavors & Fragrances 3,000 137
.........................................................................
Kao (JPY) 5,000 58
.........................................................................
195
............
Beverages 0.8%
Coca-Cola 600 31
.........................................................................
LVMH (FRF) 300 76
.........................................................................
PepsiCo 6,700 200
.........................................................................
307
............
Food Processing 3.5%
Cadbury Schweppes ADR 2,000 70
.........................................................................
CSM (NLG) 1,000 54
.........................................................................
</TABLE>
50
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
<S> <C> <C>
Danisco (DKK) 1,300 $ 73
.........................................................................
Eridania Beghin-Say (FRF) 300 47
.........................................................................
General Mills 2,460 156
.........................................................................
Heinz 5,200 197
.........................................................................
Interstate Bakeries 2,300 104
.........................................................................
McCormick 6,000 148
.........................................................................
Nabisco Holdings (Class A) 2,300 89
.........................................................................
Nestle (CHF) 100 109
.........................................................................
Ralston Purina 2,100 161
.........................................................................
Sara Lee 4,900 192
.........................................................................
1,400
............
Hospital Supplies/Hospital Management 1.4%
Baxter International 1,700 72
.........................................................................
Boston Scientific * 2,000 117
.........................................................................
Columbia/HCA Healthcare 3,900 156
.........................................................................
Medtronic 1,900 126
.........................................................................
Vencor * 3,000 97
.........................................................................
568
............
Pharmaceuticals 5.1%
American Home Products 3,580 230
.........................................................................
Amgen * 1,400 85
.........................................................................
Astra (Class B) (SEK) 1,600 75
.........................................................................
Bristol-Myers Squibb 600 68
.........................................................................
Ciba-Geigy (CHF) 75 93
.........................................................................
Eli Lilly 1,864 142
.........................................................................
Gehe (DEM) 2,000 123
.........................................................................
Glaxo Wellcome ADR 2,000 66
.........................................................................
Johnson & Johnson 3,100 165
.........................................................................
Merck 1,700 141
.........................................................................
Perrigo * 10,000 94
.........................................................................
Pfizer 3,960 355
.........................................................................
Pharmacia & Upjohn 1,160 45
.........................................................................
Schering-Plough 1,300 92
.........................................................................
SmithKline Beecham ADR 2,900 200
.........................................................................
Takeda Chemical Industries (JPY) 5,000 98
.........................................................................
2,072
............
</TABLE>
51
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
<S> <C> <C>
Health Care Services 0.5%
Apria Healthcare * 2,200 $ 39
.........................................................................
PacifiCare Health Systems (Class B) * 1,300 108
.........................................................................
United HealthCare 1,800 78
.........................................................................
225
............
Miscellaneous Consumer Products 3.6%
Benetton Group (ITL) 5,000 64
.........................................................................
Bridgestone (JPY) 4,000 74
.........................................................................
Colgate-Palmolive 1,250 116
.........................................................................
CUC International * 3,150 83
.........................................................................
Grand Metropolitan 700 22
.........................................................................
Jones Apparel Group * 2,500 77
.........................................................................
Kuraray (JPY) 8,000 77
.........................................................................
Lion Nathan (NZD) 30,000 77
.........................................................................
Newell 2,600 81
.........................................................................
Philip Morris 3,550 366
.........................................................................
Procter & Gamble 1,300 141
.........................................................................
Richfood Holdings 4,600 121
.........................................................................
Tambrands 2,640 113
.........................................................................
UST 1,300 42
.........................................................................
1,454
............
Total Consumer Nondurables 6,221
............
CONSUMER SERVICES 7.7%
General Merchandisers 1.5%
Dayton Hudson 3,000 117
.........................................................................
Marui (JPY) 4,000 76
.........................................................................
Pinault Printemps (FRF) 200 80
.........................................................................
Tesco (GBP) 15,160 86
.........................................................................
TJX 2,200 99
.........................................................................
Wal-Mart 5,000 127
.........................................................................
585
............
Specialty Merchandisers 2.2%
Circuit City Stores 900 30
.........................................................................
Eckerd * 3,200 110
.........................................................................
Federated Department Stores * 3,800 130
.........................................................................
General Nutrition * 3,500 61
.........................................................................
</TABLE>
52
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
<S> <C> <C>
Home Depot 1,500 $ 78
.........................................................................
Kohl's * 2,300 92
.........................................................................
Revco * 4,000 138
.........................................................................
Safeway * 2,400 97
.........................................................................
Staples * 1,700 34
.........................................................................
Tupperware 2,400 127
.........................................................................
897
............
Entertainment and Leisure 2.8%
Boston Chicken * 1,800 70
.........................................................................
Carnival (Class A) 2,000 63
.........................................................................
Disney 2,100 155
.........................................................................
Hutchison Whampoa (HKD) 25,000 193
.........................................................................
ITT * 3,500 162
.........................................................................
McDonald's 2,500 117
.........................................................................
Reader's Digest (Class B) 8,040 288
.........................................................................
Sharp (JPY) 4,000 63
.........................................................................
1,111
............
Media and Communications 1.2%
Catalina Marketing * 1,200 61
.........................................................................
Elsevier (NLG) 4,000 68
.........................................................................
R. R. Donnelley 4,000 134
.........................................................................
Time Warner 1,500 61
.........................................................................
Vodafone ADR 4,000 173
.........................................................................
497
............
Total Consumer Services 3,090
............
CONSUMER CYCLICALS 4.3%
Automobiles and Related 0.9%
Cycle & Carriage (SGD) 6,000 68
.........................................................................
Honda ADR 1,500 89
.........................................................................
Lear 900 32
.........................................................................
Lucasvarity ADR 4,140 176
.........................................................................
365
............
Building and Real Estate 1.4%
Cheung Kong Holdings (HKD) 18,000 158
.........................................................................
DBS Land (SGD) 15,000 54
.........................................................................
Federal Realty Investment Trust, REIT 8,000 208
.........................................................................
Simon DeBartolo Group, REIT 5,440 149
.........................................................................
569
............
</TABLE>
53
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------
In thousands
<S> <C> <C>
Miscellaneous Consumer Durables 2.0%
Corning 9,300 $ 377
..........................................................................
Eastman Kodak 1,600 129
..........................................................................
Masco 1,400 51
..........................................................................
Oce Van Der Grinten NV (NLG) 500 54
..........................................................................
Ricoh (JPY) 8,000 86
..........................................................................
Roussel UCLAF (FRF) 400 105
..........................................................................
802
.............
Total Consumer Cyclicals 1,736
.............
TECHNOLOGY 5.3%
Electronic Components 0.8%
Intel 1,000 127
..........................................................................
Linear Technology 900 43
..........................................................................
Maxim Integrated Products * 1,400 65
..........................................................................
Xilinx * 1,800 79
..........................................................................
314
.............
Electronic Systems 0.9%
ADT * 2,300 47
..........................................................................
Hewlett-Packard 900 49
..........................................................................
Honeywell 3,150 216
..........................................................................
Nokia ADR 1,000 56
..........................................................................
368
.............
Information Processing 0.9%
Hitachi ADR 700 66
..........................................................................
IBM 1,830 292
..........................................................................
358
.............
Office Automation 0.2%
Ceridian * 2,000 96
..........................................................................
96
.............
Specialized Computer 0.1%
Silicon Graphics * 1,800 36
..........................................................................
36
.............
Telecommunications Equipment 1.3%
3Com * 1,600 120
..........................................................................
Cisco Systems * 1,900 129
..........................................................................
LM Ericsson (Class B) ADR 4,500 139
..........................................................................
MCI 1,800 55
..........................................................................
Telecomunicacoes Brasileiras ADR 1,400 106
..........................................................................
549
.............
</TABLE>
54
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------
In thousands
<S> <C> <C>
Aerospace and Defense 1.1%
AlliedSignal 3,240 $ 237
..........................................................................
Boeing 1,100 109
..........................................................................
Lockheed Martin 1,000 91
..........................................................................
437
.............
Total Technology 2,158
.............
CAPITAL EQUIPMENT 4.4%
Electrical Equipment 3.1%
ABB AG (CHF) 100 125
..........................................................................
Canon (JPY) 3,000 63
..........................................................................
Emerson Electric 1,100 108
..........................................................................
GE 4,300 447
..........................................................................
Hubbell (Class B) 3,800 160
..........................................................................
Matsushita Electric Works (JPY) 6,000 56
..........................................................................
Mitsubishi Electric (JPY) 10,000 58
..........................................................................
Siemens (DEM) 1,000 48
..........................................................................
Tomkins ADR 5,000 84
..........................................................................
Tyco International 2,000 109
..........................................................................
1,258
.............
Machinery 1.3%
Danaher 3,400 152
..........................................................................
Deere 1,140 51
..........................................................................
GKN (GBP) 2,500 47
..........................................................................
Man (DEM) 200 47
..........................................................................
S I G Schweis (CHF) 30 72
..........................................................................
Teleflex 3,000 149
..........................................................................
518
.............
Total Capital Equipment 1,776
.............
BUSINESS SERVICES AND
TRANSPORTATION 5.4%
Computer Service and Software 2.9%
Adobe Systems 1,300 51
..........................................................................
Ascend Communications * 1,000 71
..........................................................................
Automatic Data Processing 2,600 112
..........................................................................
</TABLE>
55
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------
In thousands
<S> <C> <C>
BMC Software * 4,000 $ 175
..........................................................................
Electronic Data Systems 1,600 77
..........................................................................
First Data 3,570 142
..........................................................................
Informix * 2,300 55
..........................................................................
Medic Computer Systems * 1,700 58
..........................................................................
Microsoft * 600 94
..........................................................................
National Data 1,800 72
..........................................................................
Oracle * 1,900 93
..........................................................................
Reynolds & Reynolds 2,300 64
..........................................................................
SunGard Data Systems * 1,800 76
..........................................................................
Synopsys * 1,100 49
..........................................................................
1,189
.............
Distribution Services 0.4%
Alco Standard 2,800 145
..........................................................................
145
.............
Environmental 0.2%
USA Waste Services * 2,300 74
..........................................................................
74
.............
Transportation Services 0.3%
Mitsubishi Heavy Industries (JPY) 8,000 66
..........................................................................
United Engineers (MYR) 5,000 45
..........................................................................
111
.............
Miscellaneous Business Services 0.9%
BAA (GBP) 5,000 41
..........................................................................
Sime Darby (MYR) 12,000 45
..........................................................................
Wallace Computer Sevices 2,400 84
..........................................................................
WMX Technologies 5,560 200
..........................................................................
370
.............
Airlines 0.5%
AMR* 840 77
..........................................................................
KLM (NLG) 2,000 52
..........................................................................
Singapore Airlines (SGD) 6,000 56
..........................................................................
185
.............
Railroads 0.2%
Burlington Northern Santa Fe 1,000 90
..........................................................................
90
.............
Total Business Services and Transportation 2,164
.............
</TABLE>
56
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------
In thousands
<S> <C> <C>
ENERGY 5.7%
Energy Services 1.7%
BJ Services * 1,800 $ 86
..........................................................................
Cooper Cameron * 1,800 118
..........................................................................
Elf Aquitaine ADR 1,400 61
..........................................................................
Halliburton 2,800 169
..........................................................................
Schlumberger 1,930 201
..........................................................................
Total ADR 700 28
..........................................................................
663
.............
Integrated Petroleum - Domestic 2.3%
Atlantic Richfield 2,300 320
..........................................................................
British Petroleum ADR 2,640 367
..........................................................................
Unocal 1,300 53
..........................................................................
USX-Marathon 8,400 192
..........................................................................
932
.............
Integrated Petroleum - International 1.7%
ENI S.P.A. ADR 2,000 105
..........................................................................
Exxon 830 78
..........................................................................
Mobil 1,800 218
..........................................................................
Repsol ADR 1,200 44
..........................................................................
Royal Dutch Petroleum ADR 700 119
..........................................................................
Shell Transport & Trading ADR 400 40
..........................................................................
Texaco 900 89
..........................................................................
693
.............
Total Energy 2,288
.............
PROCESS INDUSTRIES 5.3%
Diversified Chemicals 0.7%
DuPont 2,000 188
..........................................................................
Hercules 600 29
..........................................................................
Monsanto 600 24
..........................................................................
Union Carbide 1,100 51
..........................................................................
292
Specialty Chemicals 2.6%
3M 1,100 92
..........................................................................
A. Schulman 4,900 118
..........................................................................
</TABLE>
57
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------
In thousands
<S> <C> <C>
Akzo Nobel (NLG) 500 $ 66
..........................................................................
BASF AG (DEM) 2,000 74
..........................................................................
Bayer AG (DEM) 2,000 81
..........................................................................
Great Lakes Chemical 8,240 442
..........................................................................
Pall 2,000 52
..........................................................................
Sumitomo Chemicals (JPY) 11,000 48
..........................................................................
Technip (FRF) 600 56
..........................................................................
1,029
.............
Paper and Paper Products 1.9%
Dai Nippon Printing (JPY) 4,000 73
..........................................................................
International Paper 3,000 128
..........................................................................
James River 6,000 192
..........................................................................
Kimberly-Clark 3,200 313
..........................................................................
Willamette Industries 700 47
..........................................................................
753
.............
Forest Products 0.1%
Georgia-Pacific 800 58
..........................................................................
58
.............
Total Process Industries 2,132
.............
BASIC MATERIALS 1.7%
Metals 1.0%
Alcoa 1,000 64
..........................................................................
Nucor 2,900 158
..........................................................................
Reynolds Metals 3,000 178
..........................................................................
400
.............
Mining 0.1%
CRA Limited (AUD) 3,000 50
..........................................................................
50
Miscellaneous Materials 0.6%
Crown Cork & Seal 3,000 159
..........................................................................
Malayan Cement (MYR) 27,000 63
..........................................................................
222
.............
Total Basic Materials 672
.............
</TABLE>
58
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
MISCELLANEOUS 0.2%
Conglomerates 0.2%
LONRHO (GBP) 22,000 $ 50
.....................................................................................
Orkla (Class A) (NOK) 500 33
.....................................................................................
Total Miscellaneous 83
............
Total Common Stocks (Cost $ 27,454) 31,880
............
Corporate Bonds 12.1%
Aames Financial, Sr. Notes, 9.125%, 11/1/03 50,000 51
.....................................................................................
Agricultural Minerals and Chemicals, Sr. Notes
10.75%, 9/30/03 50,000 54
.....................................................................................
Ahmanson, H.F., Sub. Notes, 7.875%, 9/1/04 100,000 107
.....................................................................................
Airplane Pass Through Trust, 10.875%, 3/15/19 50,000 56
.....................................................................................
Allied Waste North America, Sr. Sub. Notes
(144a), 10.25%, 12/1/06 50,000 51
.....................................................................................
American Safety Razor, Sr. Notes, 9.875%, 8/1/05 50,000 54
.....................................................................................
Ametek, Sr. Notes, 9.75%, 3/15/04 10,000 11
.....................................................................................
Associates Corporation North America, Sr. Notes
5.25%, 3/30/00 15,000 15
.....................................................................................
Bally's Park Place, 1st Mtg. Notes, 9.25%, 3/15/04 50,000 55
.....................................................................................
Bank of Nova Scotia, Sub. Notes, 6.25%, 9/15/08 15,000 14
.....................................................................................
BE Aerospace, Sr. Sub. Notes, 9.875%, 2/1/06 25,000 26
.....................................................................................
BF Saul, REIT, Sr. Secured Notes, 11.625%, 4/1/02 50,000 54
.....................................................................................
Boise Cascade, Deb., 7.35%, 2/1/16 80,000 77
.....................................................................................
Building Material, Sr. Disc. Notes, STEP, Zero Coupon
7/1/99; 11.75%, 7/1/99-7/1/04 50,000 43
.....................................................................................
Celulosa Arauco Y Constitucion, Notes, 7.00%, 12/15/07 100,000 100
.....................................................................................
Coinmach, Sr. Notes, 11.75%, 11/15/05 50,000 54
.....................................................................................
Coltec Industries, Sr. Sub. Notes, 10.25%, 4/1/02 50,000 53
.....................................................................................
Communications & Power Industries, Sr. Sub. Notes
12.00%, 8/1/05 50,000 54
.....................................................................................
Consolidated Cigar, Sr. Sub. Notes, 10.50%, 3/1/03 50,000 52
.....................................................................................
Continental Bank, Sub. Notes, 12.50%, 4/1/01 48,000 59
.....................................................................................
Coop. Utility Trust Big River, 9.50%, 2/15/17 500,000 542
.....................................................................................
Cyprus Minerals Company, Notes, 6.625%, 10/15/05 100,000 99
.....................................................................................
Daimler-Benz Auto Grantor Trust, 3.90%, 10/15/98 6,618 7
.....................................................................................
</TABLE>
59
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Delta Airlines, MTN, 8.625%, 6/15/04 90,000 $ 98
.....................................................................................
Doane Products, Sr. Notes, 10.625%, 3/1/06 50,000 53
.....................................................................................
Dominion Textile USA, Gtd. Sr. Notes, 9.25%, 4/1/06 50,000 51
.....................................................................................
Dr Pepper Bottling, Sr. Disc. Notes, STEP, Zero Coupon
2/15/98; 11.625%, 2/15/98-2/15/03 50,000 46
.....................................................................................
Enhance Financial Services Group, Deb., 6.75%, 3/1/03 300,000 302
.....................................................................................
Fairfax Financial Holdings Ltd., Notes, 8.25%, 10/1/15 250,000 267
.....................................................................................
First Federal Financial, Notes, 11.75%, 10/1/04 50,000 53
.....................................................................................
First USA Bank, Sr. Notes, 5.85%, 2/22/01 300,000 292
.....................................................................................
GNF, 1st Mtg. Notes, 10.625%, 4/1/03 50,000 55
.....................................................................................
Harrah's, Sr. Sub. Notes, 10.875%, 4/15/02 50,000 53
.....................................................................................
Hayes Wheels International, Sr. Sub. Notes
11.00%, 7/15/06 50,000 54
.....................................................................................
International Knife & Saw, Sr. Sub. Notes, (144a)
11.375%, 11/15/06 25,000 26
.....................................................................................
Intertek Finance, Sr. Sub. Notes, 144a, 10.25%, 11/1/06 25,000 26
.....................................................................................
Jordan Industries, Sr. Notes, 10.375%, 8/1/03 50,000 49
.....................................................................................
Lockheed Martin, Gtd. Notes, 6.55%, 5/15/99 200,000 202
.....................................................................................
Loehmann's, Sr. Notes, 11.875%, 5/15/03 50,000 54
.....................................................................................
Long Island Lighting, Gen. and Ref. Bonds
8.75%, 2/15/97 30,000 30
.....................................................................................
Mettler Toledo, Gtd. Sr. Sub. Notes, 9.75%, 10/1/06 50,000 52
.....................................................................................
Northrop-Grumman, Notes, 7.00%, 3/1/06 100,000 101
.....................................................................................
Outdoor Systems, Sr. Sub. Notes, 9.375%, 10/15/06 50,000 50
.....................................................................................
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 50,000 53
.....................................................................................
Owens-Illinois, Sr. Deb., 11.00%, 12/1/03 50,000 55
.....................................................................................
Paine Webber Group, Notes, 8.25%, 5/1/02 100,000 107
.....................................................................................
Petroleum Heat & Power, Sub. Notes, 10.125%, 4/1/03 50,000 50
.....................................................................................
Portola Packaging, Sr. Notes, 10.75%, 10/1/05 50,000 52
.....................................................................................
Principal Mutual Life Insurance, Notes
(144a), 8.00%, 3/1/44 190,000 198
.....................................................................................
Revlon Worldwide, Sr. Secured Disc. Notes
Zero Coupon, 3/15/98 50,000 43
.....................................................................................
Rogers Cablesystems, Sr. Secured 2nd Priority Notes
10.00%, 3/15/05 50,000 53
.....................................................................................
Rouse, Notes, 8.50%, 1/15/03 15,000 16
.....................................................................................
</TABLE>
60
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Rowan Companies, Sr. Notes, 11.875%, 12/1/01 50,000 $ 53
.....................................................................................
Scotland International Finance, Gtd. Sub. Notes
(144a), 6.50%, 2/15/11 100,000 95
.....................................................................................
Shawmut National, Sub. Notes, 7.20%, 4/15/03 15,000 15
.....................................................................................
Silgan, Sr. Sub. Notes, 11.75%, 6/15/02 50,000 54
.....................................................................................
Six Flags Theme Parks, Sr. Sub. Notes, STEP, Zero Coupon
6/15/98; 12.25%, 6/15/98-6/15/05 50,000 46
.....................................................................................
Tenneco, Notes, 8.00%, 11/15/99 15,000 16
.....................................................................................
Texas-New Mexico Power, 12.50%, 1/15/99 50,000 55
.....................................................................................
Texas Utilities Electric, 1st Mtg. Bonds
7.375%, 10/1/25 100,000 99
.............................................................................
7.875%, 4/1/24 100,000 103
.....................................................................................
Trump Atlantic City Associates, 1st Mtg. Notes
11.25%, 5/1/06 50,000 47
.....................................................................................
United Artists Theatre Circuit, PTC
(144a), 9.30%, 7/1/15 49,588 45
.....................................................................................
Wal-Mart, Deb., 7.25%, 6/1/13 30,000 31
.....................................................................................
Total Corporate Bonds (Cost $4,741) 4,888
............
Foreign Government Obligations/
Agencies 1.3%
Belgian Government Bonds, 7.25%, 4/29/04 BEL 300,000 10
.....................................................................................
Canadian Government Bonds
6.50%, 6/1/04 CAD 3,000 2
.............................................................................
8.50%, 4/1/02 CAD 27,000 23
.............................................................................
9.75%, 6/1/21 CAD 5,000 5
.....................................................................................
European Investor Bank, 4.625%, 2/26/03 JPY 10,000,000 101
.....................................................................................
French Government Bonds
8.25%, 2/27/04 FRF 142,000 33
.............................................................................
8.50%, 11/25/02 FRF 264,000 60
.....................................................................................
German Federal Government Bonds
6.50%, 7/15/03 DEM 30,000 21
.............................................................................
8.375%, 5/21/01 DEM 80,000 60
.............................................................................
8.50%, 8/21/00 DEM 23,000 17
.....................................................................................
</TABLE>
61
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------------------
In thousands
<S> <C> <C> <C>
Int'l Bank for Reconstruction & Development
6.75%, 3/15/00 JPY 1,000,000 $ 10
..................................................................................
Italian Government Bonds, 8.50%, 8/1/04 ITL 45,000,000 32
.....................................................................................
Japanese Government Bonds, 4.50%, 6/20/03 # JPY 8,400,000 84
.....................................................................................
Spanish Government Bonds, 8.00%, 5/30/04 ESP 1,500,000 12
.....................................................................................
Swedish Government Bonds, 6.00%, 2/9/05 SEK 100,000 14
.....................................................................................
United Kingdom Treasury Notes
8.00%, 6/10/03 GBP 17,000 30
.............................................................................
9.00%, 3/3/00 GBP 8,000 14
.....................................................................................
Total Foreign Government Obligations/Agencies (Cost $502) 528
............
U.S. Government Mortgage-
Backed Securities 4.1%
Federal National Mortgage Assn.
6.50%, 1/1/26 199,611 194
.....................................................................................
Government National Mortgage Assn., I
6.00%, 12/15/23 - 5/15/26 302,385 287
.............................................................................
6.50%, 12/15/23 - 4/15/24 138,228 136
.............................................................................
7.00%, 8/15/23 136,528 136
.............................................................................
7.50%, 10/15/22 - 1/15/26 458,181 465
.............................................................................
8.00%, 1/15/22 - 10/20/25 396,032 412
.....................................................................................
Total U.S. Government Mortgage-Backed Securities (Cost $1,569) 1,630
............
U.S. Government Obligations/
Agencies 0.2%
Tennessee Valley Authority, 7.25%, 7/15/43 70,000 70
.....................................................................................
Total U.S. Government Obligations/Agencies (Cost $69) 70
............
Short-Term Investments 3.8%
Commercial Paper 3.8%
Ford Credit Europe, 5.30%, 12/2/96 1,000,000 1,000
.....................................................................................
Investments in Commercial Paper through a joint account
5.70-5.90%, 12/2/96 519,112 519
.....................................................................................
Total Short-Term Investments (Cost $1,519) 1,519
............
</TABLE>
62
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- --------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
100.6% of Net Assets (Cost $35,854) $ 40,515
Other Assets Less Liabilities (235)
............
NET ASSETS $ 40,280
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 573
Accumulated net realized gain/loss - net of distributions 2,525
Net unrealized gain (loss) 4,660
Paid-in-capital applicable to 2,637,180 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares authorized 32,522
............
NET ASSETS $ 40,280
............
NET ASSET VALUE PER SHARE $ 15.27
............
</TABLE>
* Non-income producing
# Securities contain some restrictions as to public resale--total of such
securities at year-end amounts to 0.21% of net assets.
MTN Medium Term Note
PTC Pass-through certificates
STEP Stepped coupon bond
REIT Real Estate Investment Trust
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
0.86% of net assets.
AUD Australian dollar
BEL Belgian franc
CAD Canadian dollar
CHF Swiss franc
DEM German deutschemark
DKK Danish krone
FRF French franc
GBP British sterling
HKD Hong Kong dollar
ITL Italian lira
JPY Japanese yen
MYR Malaysian ringgit
NLG Dutch guilder
NOK Norwegian krone
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
T. Rowe Price Personal Strategy Funds
- -------------------------------------------------------------------------------
Unaudited
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
In thousands Income Balanced Growth
Fund Fund Fund
6 Months 6 Months 6 Months
Ended Ended Ended
11/30/96 11/30/96 11/30/96
Investment Income
Income
Interest $ 654 $ 2,158 $ 249
Dividend 114 796 230
-----------------------------
Total income 768 2,954 479
-----------------------------
Expenses
Investment Management - 325 1
Custody And Accounting 60 79 60
Shareholder Servicing 43 243 65
Registration 14 54 17
Legal And Audit 9 10 9
Prospectus And Shareholder Reports 3 7 7
Directors 3 3 3
Miscellaneous 7 7 7
Reimbursed to Manager - 23 -
-----------------------------
Total expenses 139 751 169
-----------------------------
Net investment income 629 2,203 310
-----------------------------
REALIZED AND UNREALIZED GAIN(LOSS)
Net realized gain (loss)
Securities 1,599 3,416 1,863
Futures - 9 -
Foreign currency transactions - (15) (1)
-----------------------------
Net realized gain (loss) 1,599 3,410 1,862
-----------------------------
Change in net unrealized gain or loss
Securities 678 9,510 1,653
Other assets and liabilities
denominated in foreign currencies (2) - -
-----------------------------
Change in net unrealized gain or loss 676 9,510 1,653
-----------------------------
Net realized and unrealized gain (loss) 2,275 12,920 3,515
-----------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 2,904 $ 15,123 $ 3,825
-----------------------------
The accompanying notes are an integral part of these financial statements.
64
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY FUNDS
- --------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
In thousands Income Fund Balanced Fund Growth Fund
6 Months Year 6 Months Year 6 Months Year
Ended Ended Ended Ended Ended Ended
11/30/96 5/31/96 11/30/96 5/31/96 11/30/96 5/31/96
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 629 $ 1,040 $ 2,203 $ 1,324 $ 310 $ 373
Net realized gain (loss) 1,599 1,154 3,410 994 1,862 738
Change in net unrealized
gain or loss 676 793 9,510 1,856 1,653 2,015
....................................................................................
Increase (decrease) in
net assets from operations 2,904 2,987 15,123 4,174 3,825 3,126
....................................................................................
Distributions to shareholders
Net investment income (595) (974) (2,043) (722) - (330)
Net realized gain (1,007) (207) (943) (105) - (86)
....................................................................................
Decrease in net assets
from distributions (1,602) (1,181) (2,986) (827) - (416)
....................................................................................
Capital share transactions*
Shares sold 9,713 10,965 64,698 104,537 15,232 14,369
Distributions reinvested 1,521 1,076 2,959 802 - 411
Shares redeemed (4,494) (9,020) (28,727) (5,309) (3,862) (3,374)
....................................................................................
Increase (decrease) in
net assets from capital
share transactions 6,740 3,021 38,930 100,030 11,370 11,406
....................................................................................
Net equalization 23 13 42 113 131 90
....................................................................................
Net Assets
Increase (decrease)
during period 8,065 4,840 51,109 103,490 15,326 14,206
Beginning of period 25,545 20,705 116,826 13,336 24,954 10,748
....................................................................................
End of period $ 33,610 $ 25,545 $ 167,935 $ 116,826 $ 40,280 $ 24,954
------------------------------------------------------------------------------------
*Share information
Shares sold 844 949 5,086 8,390 1,091 1,116
Distributions reinvested 134 94 235 66 - 32
Shares redeemed (389) (780) (2,260) (438) (277) (264)
....................................................................................
Increase (decrease)
in shares outstanding 589 263 3,061 8,018 814 884
</TABLE>
The accompanying notes are an integral part of these financial statements.
65
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY FUNDS
- --------------------------------------------------------------------------------
Unaudited November 30, 1996
Notes to Financial Statements
--------------------------------------------------
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 and commenced operations on July 29, 1994.
Valuation Equity securities listed or regularly traded on a securities
exchange are valued at the last quoted sales price at the time the
valuations are made. A security which is listed or traded on more than one
exchange is valued at the quotation on the exchange determined to be the
primary market for such security. Listed securities that are not traded on a
particular day and securities that are regularly traded in the over-the-
counter market are valued at the mean of the latest bid and asked prices.
Other equity securities are valued at a price within the limits of the
latest bid and asked prices deemed by the Board of Directors, or by persons
delegated by the Board, best to reflect fair value.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service.
Short-term debt securities are valued at their amortized cost which
approximates fair value.
For purposes of determining each fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of
such currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of each fund, as authorized by the Board of Directors.
Currency Translation Assets and liabilities are translated into U.S. dollars
at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated
into U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized
and unrealized security gains and losses is reflected as a component of such
gains and losses.
66
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY FUNDS
- --------------------------------------------------------------------------------
Premiums and Discounts Premiums and discounts on debt securities, other than
mortgage-backed securities, are amortized for both financial reporting and
tax purposes. Premiums and discounts on mortgage-backed securities are
recognized upon principal repayment as gain or loss for financial reporting
purposes and as ordinary income for tax purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and distributions
to shareholders are recorded by 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 or 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.
Noninvestment-Grade Debt Securities At November 30, 1996, the Income and
Balanced Funds 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.
Commercial Paper Joint Account The Personal Strategy 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.
Securities Lending To earn additional income, each fund lends its securities
to approved brokers. At November 30, 1996, the market value of securities on
loan by the Income Fund, the Balanced Fund, and Growth Fund was $2,162,000,
$9,472,000, and $2,843,000, respectively, which was fully
67
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY FUNDS
collateralized with cash. Although the risk is mitigated by the collateral,
each fund could experience a delay in recovering its securities and a
possible loss of income or value if the borrower fails to return them.
Other Purchases and sales of U.S. government securities and other portfolio
securities, excluding short-term securities, for the six months ended
November 30, 1996, were as follows:
<TABLE>
<CAPTION>
Income Balanced Growth
Fund Fund Fund
<S> <C> <C> <C>
U.S. government securities
Purchases $ 274,000 $ 4,530,000 $ 191,000
Sales 199,000 475,000 42,000
Other securities
Purchases 11,004,000 84,458,000 22,643,000
Sales 7,376,000 49,996,000 11,548,000
</TABLE>
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, 1996, the aggregate cost of investments for the Income,
Balanced, and Growth Funds for federal income tax and financial reporting
purposes were $30,185,000, $154,203,000, and $35,854,000, respectively. Net
unrealized gain (loss) on investments was as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Income Balanced Growth
Fund Fund Fund
Appreciated investments $3,355,000 $14,093,000 $5,065,000
Depreciated investments (203,000) (1,539,000) (404,000)
Net unrealized gain (loss) $3,152,000 $12,554,000 $4,661,000
</TABLE>
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, of which $49,000 and $1,000 were payable at November 30, 1996 by the
Balanced and Growth Funds, respectively. The fee is computed daily and paid
monthly, and consists 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
68
<PAGE>
T. Rowe Price Personal Strategy Funds
- --------------------------------------------------------------------------------
daily net assets and a group fee. The group fee is based on the combined
assets of certain mutual funds sponsored by the manager or Rowe Price-
Fleming International, Inc. (the group). The group fee rate ranges from
0.48% for the first $1 billion of assets to 0.305% for assets in excess of
$50 billion. At November 30, 1996, and for the six months then ended, the
effective annual group fee rate was 0.33%. 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, 1998, for the funds which
would cause each fund's expense 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. 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,
$233,000, $181,000 and $232,000 of management fees were not accrued by the
Income, Balanced, and Growth Funds for the six months ended November 30,
1996, and $110,000, $75,000, and $188,000 of other expenses were borne by
the manager of the Income Fund, Growth Fund, and Balanced Fund respectively.
Pursuant to this agreement, $272,000, $167,000 and $325,000 of unaccrued
prior year fees and expenses remain subject to reimbursement through May 31,
1998 for the Income Fund, Balanced Fund, and Growth Fund, respectively.
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
Retirement Plan Services, Inc., provides subaccounting and recordkeeping
services for certain retirement accounts invested in each fund. The Income,
Balanced and Growth Funds incurred expenses pursuant to these related party
agreements totaling approximately $69,000, $254,000 and $87,000,
respectively, for the six months ended November 30, 1996, of which $15,000,
$42,000 and $15,000, respectively, were payable at period-end.
During the six months ended November 30, 1996, the Income Fund, Balanced
Fund and Growth Fund, in the ordinary course of business, paid commissions
of $3,000, $7,000 and $5,000, respectively, to, and placed security purchase
and sale orders aggregating $420,000, $1,348,000 and $878,000 with, certain
affiliates of the manager in connection with the execution of various
portfolio transactions.
69
<PAGE>
For yield, price, last transaction, Investor Centers:
current balance or to conduct 101 East Lombard St.
transactions, 24 hours, 7 days Baltimore, MD 21202
a week, call Tele*Access(R):
1-800-638-2587 toll free T. Rowe Price
Financial Center
For assistance 10090 Red Run Blvd.
with your existing Owings Mills, MD 21117
fund account, call:
Shareholder Service Center Farragut Square
1-800-225-5132 toll free 900 17th Street, N.W.
625-6500 Baltimore area Washington, D.C. 20006
To open a Discount Brokerage ARCO Tower
account or obtain information, 31st Floor
call: 1-800-638-5660 toll free 515 South Flower St.
Los Angeles, CA 90071
Internet address:
http://www.troweprice.com 4200 West Cypress St.
10th Floor
T. Rowe Price Associates Tampa, FL 33607
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.
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor RPRTPSC 11/30/96
