<PAGE>
Semiannual Report
PERSONAL
STRATEGY
FUNDS
- -----------------
NOVEMBER 30, 1998
- -----------------
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. ROWE PRICE
<PAGE>
Report Highlights
-----------------------------------------------------------------------------
Personal Strategy Funds
. Stocks sold off sharply before recovering their earlier highs; Treasuries
benefited from the flight to safety, but lower-quality bonds had poor
returns.
. The funds trailed their benchmarks during the six months ended November 30,
1998, largely due to the inclusion of small-cap stocks in the portfolios;
12-month returns were good.
. During the past six months, the Balanced and Growth Funds with their higher
stock allocations lagged behind the Income Fund as high-grade bonds
outperformed the overall stock market.
. The funds continued to favor bonds over stocks and domestic bonds over
foreign bonds.
. We expect economic and earnings growth to slow in the months ahead and
believe the funds' diversified investment strategies could serve investors
well through 1999.
<PAGE>
FELLOW SHAREHOLDERS
Stocks sold off in late summer following the financial collapse in Russia and
continuing weakness in Asian markets, then rebounded during the past two months
to recapture their earlier highs. Most types of bonds also suffered from the
turmoil, except for Treasuries and high-grade corporate bonds, which benefited
from an investor flight to safety.
MARKET REVIEW
Global stock markets recovered after the Federal Reserve initiated a series of
key short-term rate cuts in an attempt to arrest further weakness in the U.S.
and foreign economies. This loosening of monetary policy sent a positive message
around the globe, and investors responded enthusiastically.
Date 30 year 5 year 90 days
11/30/97 6.08 5.82 5.27
5.93 5.71 5.4
5.89 5.48 5.22
Feb-98 5.84 5.6 5.16
5.92 5.62 5.19
6.02 5.72 5.05
May-98 5.83 5.57 5.09
5.65 5.5 5.06
5.73 5.51 5.07
Aug-98 5.42 5.07 5.03
5 4.24 4.38
5.12 4.22 4.21
11/30/98 5.21 4.62 4.58
Treasury bonds benefited from the global uncertainty, and the 30-year yield fell
to its lowest level in decades. As can be seen in the chart, the long-term yield
dropped from more than 6% a year ago to 5.21% at the end of November. The
five-year note yield declined by a wider margin from 5.82% to 4.62%, and the
90-day Treasury bill yield ended at 4.58%, down from 5.27% last November.
Corporate bonds were mixed, as the high-yield sector suffered when investors
began to flee from riskier securities, and high-grade corporate bonds posted
solid returns for both the past 6- and 12-month periods in the midst of all the
volatility.
PERFORMANCE AND STRATEGY REVIEW
The funds' investment committee meets monthly to adjust the weightings of
stocks, bonds, and money market securities within the
1
<PAGE>
- -------------------------------------------------------
PREPARING FOR THE YEAR 2000
- --------------------------------------------------------------------------------
The Year 2000 draws closer every day, and it holds special meaning beyond the
arrival of a new millennium. The issue for investors is that many computer
programs throughout the world use two digits instead of four to identify the
year and may assume the next century starts with 1900. If these programs are not
modified, they will not be able to correctly handle the century change when the
year changes from "99" to "00" on January 1, 2000, and they will no longer be
able to perform necessary functions. The Year 2000 issue affects all companies
and organizations.
T. Rowe Price has been taking steps to assure that its computer systems and
processes are capable of functioning in the Year 2000. Detailed plans for
remediation efforts have been developed and are currently being executed.
Our Plan of Action
We began to address these issues several years ago by requiring that all new
systems process and store four-digit years. We will complete all reprogramming
efforts for the major application systems, including business applications
required to service our customers and processing infrastructure necessary to
ensure the integrity of customer data and investments, by December 31, 1998,
leaving a full 12 months for system testing. Because we exchange data
electronically with customers and vendors, we are working with them to assess
the adequacy of their own compliance efforts. Our goal is to ensure the
continuation of the same level of service to all our mutual fund shareholders
and clients after December 31, 1999.
We are asking all vendors and companies we do business with for a Year 2000
compliance status, with the expectation that some organizations will not be able
to modify their interface files prior to December 31, 1999. Our goal is to
identify any noncompliant files so that we can implement alternative solutions.
In addition, we are scheduling tests for critical vendors and companies that
claim Year 2000 compliance to ensure that time-related data and calculations
function properly as we move into the next century.
Smooth Transition Planned
We believe our programs and initiatives will provide a smooth transition into
the next millennium. We are assessing all systems providing products or services
to our retail mutual fund shareholders, retirement plan sponsors, and
participants, and we are taking steps to modify them where necessary for the
Year 2000. Our plan provides time to develop solutions for all noncompliant
systems and data files from customers or vendors.
The Securities Industry Association (SIA) is coordinating Year 2000 testing to
assure that securities markets, clearing corporations, depositories, and third
party service providers can send, receive, and process files and transactions
accurately. In late July 1998, the SIA completed a beta test of Year 2000
readiness. The test was considered successful in terms of transactions completed
and will serve as the basis for the SIA's industry-wide approach. During October
1998, T. Rowe Price completed its beta test of Year 2000 readiness with the SIA
and is ready for the industry-wide test that is scheduled for March and April
1999.
For a more detailed discussion of our Year 2000 effort, as well as continuing
updates on our progress, please check our Web site (www.troweprice.com).
2
<PAGE>
appropriate ranges for each fund, based on market conditions and economic
fundamentals. The committee maintained its preference for bonds over stocks in
all three portfolios, for international stocks over domestic, and for growth as
opposed to value stocks. In the current environment, the committee believes that
bonds offer better potential for total returns than stocks, that European stocks
in particular are more attractively valued than domestic shares, and that growth
stocks have a better chance than value stocks to sustain their earnings growth
if the economy slows -- as we expect. In the bond area, the committee maintained
the funds' low exposure to foreign bonds, since we expect the dollar to
strengthen, and focused on both investment-grade and high-yield bonds in the
domestic market.
PERSONAL STRATEGY INCOME FUND
This fund's investment goal is to generate the highest total return consistent
with an emphasis on income first and capital appreciation second. The typical
mix of securities for the fund is 40% bonds, 40% stocks, and 20% money market
securities, although these figures can vary by as much as 10 percentage points
above or below these levels.
- --------------------
ASSET ALLOCATION
- --------------------------------------------------------------------------------
Personal Strategy Income Fund
[PIE CHART APPEARS HERE]
Stocks 40%
Bonds 45%
Money Markets 15%
Based on net assets as of 11/30/98.
During the past six months, the fund's stock component remained close to its
level of six months ago, and the bond holdings fell four percentage points to
45%. The drop in bond exposure was not a result of a conscious policy to alter
the asset mix, but rather a reflection of cash inflows near the end of the
period that were deployed into bonds in early December. We favored large-cap
growth stocks over large-cap value stocks, and in June we added a small position
in small-cap stocks to further diversify the portfolio. In addition, we
continued to maintain a maximum position in foreign equities where we see better
potential than in the U.S. market.
3
<PAGE>
Among bonds, we overweighted investment-grade and slightly overweighted
high-yield securities and continued to keep a relatively low exposure to foreign
bonds. As mentioned, we expect the U.S. dollar to strengthen against major
foreign currencies.
- ------------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
Periods Ended 11/30/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Personal Strategy Income Fund 2.57% 11.00%
................................................................................
Combined Index Portfolio * 6.02 14.63
................................................................................
Lehman Aggregate Bond Index 5.15 9.45
................................................................................
* An unmanaged portfolio composed of 40% stocks (S&P 500), 40% bonds (Lehman
Brothers Aggregate Bond Index), and 20% money market securities (90-Day
Treasury Bills).
The fund's returns were modest for the last six months and solid for the 12
months ended November 30, 1998, but they lagged the Combined Index Portfolio in
both periods and the Lehman Aggregate Bond Index over the six months. Our
emphasis on growth stocks served shareholders well during the longer period, but
the addition of small-cap stocks to the portfolio did not immediately benefit
shareholders as these stocks have yet to catch up with the torrid pace of
large-cap, S&P 500 stocks.
PERSONAL STRATEGY BALANCED FUND
- --------------------
ASSET ALLOCATION
- --------------------------------------------------------------------------------
Personal Strategy Balanced Fund
[PIE CHART APPEARS HERE]
Stocks 58%
Bonds 35%
Money Markets 7%
Based on net assets as of 11/30/98.
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.
On November 30, your fund had 58% of its assets in stocks, the same as at the
end of May; 35% in bonds; and the balance in money market securities. As in the
case of the Income Fund, cash inflows were deployed into bonds in early
December, boosting the bond portion. We favored growth over value stocks and
underweighted foreign
4
<PAGE>
bonds for the reasons mentioned earlier. Among our major equity holdings were
Philip Morris, Mobil, GE, American Home Products, and Fannie Mae.
- -----------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
Periods Ended 11/30/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Personal Strategy Balanced Fund 2.19% 12.44%
................................................................................
Combined Index Portfolio * 6.78 17.96
................................................................................
Merrill Lynch-Wilshire Capital
Market Index 4.32 15.19
................................................................................
* An unmanaged portfolio composed of 60% stocks (S&P 500), 30% bonds (Lehman
Brothers Aggregate Bond Index), and 10% money market securities (90-Day
Treasury Bills).
Your fund's returns for the 6- and 12-month periods ended November 30, 1998,
lagged the Combined Index Portfolio and the Merrill Lynch-Wilshire Capital
Market Index, as shown in the table, largely due to the increase of
small-capitalization stocks in the portfolio. Small-cap shares have been
underperforming their larger brethren for some time -- although they have
recently begun to strengthen. Fund performance during the past six months was
behind that of the Income Fund, an unusual occurrence. This can be attributed to
the higher component of bonds in the Income Fund. While large-cap stocks were
strong, bonds outperformed other equity sectors in the period. However, 12-month
results were solid and ahead of the Income Fund, as would normally be expected
given the higher risk associated with this fund.
PERSONAL STRATEGY GROWTH
- ----------------
ASSET ALLOCATION
- --------------------------------------------------------------------------------
Personal Strategy Growth Fund
[PIE CHART APPEARS HERE]
Stocks 74%
Bonds and Money Markets 26%
Based on net assets as of 11/30/98.
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, 1998, the
fund's stock allocation was 74%, one percentage point higher than six months
ago, and 26% was in bonds and cash equivalents.
5
<PAGE>
The fund's five largest stock holdings were Philip Morris, Mobil, GE, Fannie
Mae, and SBC Communications, in that order. As in the other funds, the portfolio
reflects a bias toward growth stocks whose more consistent earnings patterns
should help them perform relatively well as economic growth slows, which we
anticipate in 1999.
- -----------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
Periods Ended 11/30/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Personal Strategy Growth Fund 1.83% 13.78%
................................................................................
Combined Index Portfolio * 7.37 21.16
................................................................................
Merrill Lynch-Wilshire Capital
Market Index 4.32 15.19
................................................................................
* An unmanaged portfolio composed of 80% stocks (S&P 500), and 20% bonds (Lehman
Brothers Aggregate Bond Index).
The fund's returns were strong for the last 12 months, but lagged the Combined
Index Portfolio and the Merrill Lynch-Wilshire Capital Market Index because of
our exposure to small-cap stocks, as explained. We believe the valuations of
smaller-company shares are appealing when compared with the large-cap universe.
Our purchase of these stocks has been premature so far, but we feel they may be
ready to outperform large-company shares after trailing them for several years.
You will notice that six-month results were behind the Income and Balanced Fund,
just as the Balanced Fund lagged behind the Income Fund. The reasons were
discussed in our Balanced Fund section.
OUTLOOK
Twelve months of global financial turmoil and economic upheaval have had an
impact on the domestic economy. Weakening exports have expanded the external
trade deficit, and available data indicate that export growth may be meager at
best. Low exports and surging imports have reduced demand for domestic
production, restraining the manufacturing sector. Corporate profit growth has
also waned, due in large measure to constrained corporate pricing power in an
atmosphere of higher global supply than demand. This confluence of forces has
put downward pressure on business fixed income investment and employment growth,
curtailing personal income expansion.
The cumulative effect of these evolving conditions could hold real GDP growth to
less than 2%, at least through the middle of 1999. Sluggish growth such as this
could lead to an upward drift in unemployment, alleviating wage and price
pressures. We anticipate a further decrease
6
<PAGE>
in both short- and long-term interest rates, as well as moderating stock returns
next year. In this environment, the diversified strategies offered by the
Personal Strategy Funds could serve shareholders well.
Respectfully submitted,
/s/ Peter Van Dyke
Peter Van Dyke
President
December 18, 1998
- --------------------------------------------------------------------------------
CHANGE IN MANAGEMENT
Peter Van Dyke, a managing director of T. Rowe Price Associates and director of
the taxable bond department, is retiring at the end of 1998. Mr. Van Dyke joined
the company in 1985 and managed the Personal Strategy Funds since their
inception in 1994. We are grateful for his contributions and wish him the best
for the future.
Edmund M. Notzon III, a managing director of T. Rowe Price Associates, has been
appointed chairman of the Personal Strategy Funds' Investment Advisory
Committee, responsible for day-to-day management of the portfolios. Mr. Notzon
joined T. Rowe Price in 1989 and manages several fixed income and asset
allocation portfolios. He has served as executive vice president and
co-portfolio manager of the Personal Strategy Funds and Spectrum Funds. Other
Investment Advisory Committee members include Stephen W. Boesel, Donald J.
Peters, William T. Reynolds, M. David Testa, Judith B. Ward, and Richard T.
Whitney.
The preceding updates the Personal Strategy Funds prospectus of October 1, 1998.
7
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY FUNDS
- --------------------------------------------------------------------------------
- ---------------------
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
PORTFOLIO OVERVIEW
Percent of
Net Assets
11/30/98
Personal Strategy Income Fund
- -------------------------------------------------------------------------------
Money Market Securities 14.7%
...............................................................................
Bonds 45.2%
...............................................................................
Treasuries/Agencies 10.6
..........................................................................
Mortgage-Backed 9.7
..........................................................................
Corporate 23.9
..........................................................................
Foreign 1.0
..........................................................................
Stocks 40.1%
...............................................................................
Five Largest Holdings:
Philip Morris 0.6
..........................................................................
Mobil 0.5
..........................................................................
SPDR Trust 0.5
..........................................................................
GE 0.5
..........................................................................
Fannie Mae 0.4
..........................................................................
2.5%
Personal Strategy Balanced Fund
- -------------------------------------------------------------------------------
Money Market Securities 6.4%
...............................................................................
Bonds 35.2%
...............................................................................
Treasuries/Agencies 7.1
..........................................................................
Mortgage-Backed 8.5
..........................................................................
Corporate 17.8
..........................................................................
Foreign 1.8
..........................................................................
Stocks 58.4%
...............................................................................
Five Largest Holdings:
Philip Morris 0.8
..........................................................................
Mobil 0.7
..........................................................................
GE 0.7
..........................................................................
American Home Products 0.6
..........................................................................
Fannie Mae 0.6
..........................................................................
3.4%
Personal Strategy Growth Fund
- -------------------------------------------------------------------------------
Money Market Securities 5.0%
...............................................................................
Bonds 20.9%
...............................................................................
Treasuries/Agencies 4.0
..........................................................................
Mortgage-Backed 3.2
..........................................................................
Corporate 12.9
..........................................................................
Foreign 0.8
..........................................................................
Stocks 74.1%
...............................................................................
Five Largest Holdings:
Philip Morris 1.0
..........................................................................
Mobil 0.9
..........................................................................
GE 0.9
..........................................................................
Fannie Mae 0.8
..........................................................................
SBC Communications 0.7
..........................................................................
4.3%
8
<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.
[LINE GRAPHS APPEAR HERE]
Date Combined Index Lehman Personal Strategy
Portfolio Aggregate Income Fund
7/29/94 10,000 10,000 10,000
Nov-94 9,973 9,834 9,939
Nov-95 12,214 11,569 12,338
Nov-96 13,956 12,272 14,125
Nov-97 16,090 13,198 15,883
Nov-98 18,444 14,446 17,631
Date Combined Merrill Lynch- Personal
Index Wilshire Capital Strategy
Portfolio Market Index Balanced Fund
7/29/94 10,000 10,000 10,000
Nov-94 9,974 9,943 9,969
Nov-95 12,728 12,681 12,710
Nov-96 15,109 14,800 14,904
Nov-97 18,089 17,744 17,124
Nov-98 21,339 20,439 19,254
9
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY FUNDS
- --------------------------------------------------------------------------------
- -----------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
PERSONAL STRATEGY GROWTH FUND
---------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Date Combined Merrill Lynch Personal
Index Wilshire Capital Strategy
Portfolio Market Index Growth Fund
7/29/94 10,000 10,000 10,000
Nov-94 9,974 9,943 10,010
Nov-95 13,258 12,681 13,111
Nov-96 16,344 14,800 15,844
Nov-97 20,302 17,744 18,598
Nov-98 24,597 20,439 21,161
- -------------------------------------
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.
Since Inception
Periods Ended 11/30/98 1 Year 3 Years Inception Date
- --------------------------------------------------------------------------------
Personal Strategy Income Fund 11.00% 12.64% 13.96% 7/29/94
................................................................................
Personal Strategy Balanced Fund 12.44 14.85 16.30 7/29/94
................................................................................
Personal Strategy Growth Fund 13.78 17.30 18.86 7/29/94
................................................................................
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
10
<PAGE>
T. ROWE PRICE SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------
INVESTMENT SERVICES AND INFORMATION
Knowledgeable Service Representatives
By Phone Shareholder service representatives are available from 8 a.m. to 10
p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on weekends. Call
1-800-225-5132 to speak directly with a representative who will be able to
assist you with your accounts.
In Person Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. You can also
drop off applications or obtain prospectuses and other literature at these
centers.
Automated 24-Hour Services
Tele*Access(R) Call 1-800-638-2587 to obtain information such as account
balance, date and amount of your last transaction, latest dividend payment, fund
prices, and yields. Additionally, you have the ability to request prospectuses,
statements, and account and tax forms; to reorder checks; and to initiate
purchase, redemption, and exchange orders for identically registered accounts.
Internet. T. Rowe Price Web site: www.troweprice.com All the information and
services available on Tele*Access are available on our Web site, including
transactions in your fund and Discount Brokerage accounts (with preauthorized
access).
Account Services
Checking Write checks for $500 or more on any money market and most bond fund
accounts (except the High Yield and Emerging Markets Bond Funds).
Automatic Investing Build your account over time by investing directly from your
bank account or paycheck with Automatic Asset Builder. Additionally, Automatic
Exchange enables you to set up systematic investments from one fund account into
another, such as from a money fund into a stock fund. A $50 minimum makes it
easy to get started.
11
<PAGE>
T. ROWE PRICE SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------
Automatic Withdrawal If you need money from your fund account on a regular
basis, you can establish scheduled, automatic redemptions.
Dividend and Capital Gains Payment Options Reinvest all or some of your
distributions, or take them in cash. We give you maximum flexibility and
convenience.
DISCOUNT BROKERAGE*
Investments Available You can trade stocks, bonds, options, precious metals,
mutual funds, and other securities at a savings over regular commission rates.
To Open an Account Call a shareholder service representative for more
information.
INVESTMENT INFORMATION
Combined Statement A comprehensive overview of your T. Rowe Price accounts is
provided. The summary page gives you earnings by tax category, provides total
portfolio value, and lists your investments by type. Detail pages itemize
account transactions.
Shareholder Reports Portfolio managers review the performance of the funds in
plain language and discuss T. Rowe Price's economic outlook.
T. Rowe Price Report This is a quarterly newsletter with relevant articles on
market trends, personal financial planning, and T. Rowe Price's economic
perspective.
Performance Update This quarterly report reviews recent market developments and
provides comprehensive performance information for every T. Rowe Price fund.
Insights This library of information includes reports on mutual fund tax issues,
investment strategies, and financial markets.
Detailed Investment Guides Our widely acclaimed Asset Mix Worksheet, College
Planning Kit, Diversifying Overseas: A Guide to International Investing,
Retirees Financial Guide, and Retirement Planning Kit (also available on disk or
CD-ROM for PC use) can help you determine and reach your investment goals.
*A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
12
<PAGE>
T. ROWE PRICE MUTUAL FUNDS
- --------------------------------------------------------------------------------
Stock Funds
................................................................................
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500*
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons**
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
Bond Funds
...............................................................................
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Intermediate Tax-Free***
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond+
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
................................................................................
International/Global
Emerging Markets Bond
Global Bond++
International Bond
Money Market FUNDS+++
................................................................................
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
Blended Asset FUNDS
................................................................................
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. Rowe Price No-Load
Variable Annuity
................................................................................
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
*Formerly named Equity Index.
**Closed to new investors.
***Formerly named Florida Insured Intermediate Tax-Free.
+Formerly named Tax-Free Insured Intermediate Bond.
++Formerly named Global Government Bond.
+++Neither the funds nor their share prices are insured or guaranteed by the
U.S. government.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY. T.
Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
13
<PAGE>
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(R):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
T. Rowe Price Associates
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.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. C11-051 11/30/98
