<PAGE>
- --------------------------------------------------------------------------------
Semiannual Report - Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price
Personal Strategy
Balanced Fund
---------------------
November 30, 1998
---------------------
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited
- ------------------------
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
6 Months Year 7/29/94
Ended Ended Through
11/30/98 5/31/98 5/31/97 5/31/96 5/31/95
NET ASSET VALUE
Beginning of period $ 15.88 $ 14.07 $ 12.68 $ 11.15 $ 10.00
.....................................................
Investment activities
Net investment income 0.22 0.46* 0.42* 0.41* 0.33*
Net realized and
unrealized gain (loss) 0.12 2.15 1.69 1.56 1.08
.....................................................
Total from investment
activities 0.34 2.61 2.11 1.97 1.41
.....................................................
Distributions
Net investment income (0.23) (0.45) (0.40) (0.37) (0.26)
Net realized gain - (0.35) (0.32) (0.07) -
.....................................................
Total distributions (0.23) (0.80) (0.72) (0.44) (0.26)
.....................................................
NET ASSET VALUE
End of period $ 15.99 $ 15.88 $ 14.07 $ 12.68 $ 11.15
-----------------------------------------------------
Ratios/Supplemental Data
Total return/\ 2.19% 19.15%* 17.21%* 17.97%* 14.35%*
.....................................................
Ratio of expenses to
average net assets 0.99%+ 1.05%* 1.05%* 1.05%* 1.05%+*
.....................................................
Ratio of net investment
income to average
net assets 2.95%+ 3.09%* 3.20%* 3.44%* 3.74%+*
.....................................................
Portfolio turnover rate 38.6%+ 41.5% 54.0% 47.7% 25.8%+
.....................................................
Net assets, end of period
(in thousands) $398,989 $328,356 $205,883 $116,826 $ 13,336
.....................................................
/\ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions
* 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.
2
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1998
- ----------------------------
Portfolio of Investments Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Common Stocks 58.4%
FINANCIAL 10.3%
Bank and Trust 6.1%
Abbey National (GBP) 44,000 $ 908
..........................................................................
ABN Amro (NLG) 20,400 420
..........................................................................
Air Liquide (L) (FRF) 2,295 390
..........................................................................
Albank Financial 1,800 122
..........................................................................
Australia & New Zealand Banking ADR 6,400 212
..........................................................................
Banca Commerciale Italiana (ITL) 86,000 588
..........................................................................
Banco de Bilbao Vizcaya ADR 39,600 624
..........................................................................
Banco Frances del Rio de la Plata (Class B) ADR 10,204 247
..........................................................................
Bank of New York 22,100 757
..........................................................................
Bank One 28,320 1,453
..........................................................................
BankAmerica 35,100 2,288
..........................................................................
Bankgesellschaft Berlin (DEM) 14,000 239
..........................................................................
Barclay's (GBP) 23,255 528
..........................................................................
Chase Manhattan 23,600 1,497
..........................................................................
Citigroup 43,499 2,183
..........................................................................
Citizens Banking 5,500 180
..........................................................................
Deutsche Bank (DEM) 6,180 381
..........................................................................
Development Bank of Singapore (SGD) 12,100 92
..........................................................................
Downey Financial 7,000 182
..........................................................................
Dresdner Bank (DEM) 7,000 314
..........................................................................
First Bell Bancorp 2,800 44
..........................................................................
First Mariner Bancorp * 2,600 37
..........................................................................
First Security 3,200 65
..........................................................................
First Union 17,500 1,063
..........................................................................
Frankfort First Bancorp 2,100 33
..........................................................................
Glacier Bancorp 7,810 166
..........................................................................
HSBC Holdings (GBP) 24,072 655
..........................................................................
J. P. Morgan 6,630 709
..........................................................................
KBC Bancassurance Holding (BEF) 6,900 494
..........................................................................
KeyCorp 7,600 233
..........................................................................
Marshall & Ilsley 900 46
..........................................................................
Mediobanca (ITL) 37,000 447
..........................................................................
Mellon Bank 21,900 1,378
..........................................................................
3
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Mercantile Bancorporation 2,000 $ 88
..........................................................................
National City 8,600 578
..........................................................................
Overseas Chinese Bank (SGD) 12,000 73
..........................................................................
Societe Generale (FRF) 3,572 563
..........................................................................
State Street 1,800 124
..........................................................................
Summit Bancorp 4,100 171
..........................................................................
Svenska Handelsbank (SEK) 11,000 443
..........................................................................
U.S. Bancorp 5,500 202
..........................................................................
Washington Mutual 26,105 1,012
..........................................................................
Wells Fargo 47,000 1,692
..........................................................................
WestAmerica 1,600 58
..........................................................................
Westpac Bank (AUD) 40,000 267
..........................................................................
24,246
................
Insurance 1.6%
ACE Limited 29,300 938
..........................................................................
Allstate 4,600 187
..........................................................................
American General 8,000 563
..........................................................................
American International Group 975 92
..........................................................................
EXEL (Class A) 14,613 1,098
..........................................................................
General Re 1,100 257
..........................................................................
Harleysville Group 5,800 123
..........................................................................
PartnerRe Holdings 6,500 288
..........................................................................
Poe & Brown 3,900 137
..........................................................................
Selective Insurance 3,600 68
..........................................................................
St. Paul Companies 23,300 821
..........................................................................
Sumitomo Marine & Fire Insurance (JPY) 48,000 286
..........................................................................
Travelers Property Casualty (Class A) 34,000 1,171
..........................................................................
UNUM 8,300 447
..........................................................................
W. R. Berkley 3,800 127
..........................................................................
6,603
................
Financial Services 2.6%
American Express 14,500 1,451
..........................................................................
Associates First Capital (Class A) 8,200 639
..........................................................................
AXA (FRF) 6,300 814
..........................................................................
Capital One Financial 5,400 594
..........................................................................
Delta Financial * 4,500 25
..........................................................................
Fannie Mae 31,800 2,313
..........................................................................
Financial Federal * 1,600 43
..........................................................................
4
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Freddie Mac 34,600 $ 2,093
..........................................................................
Household International 5,900 231
..........................................................................
ING Groep (NLG) 12,884 738
..........................................................................
ITLA Capital * 1,700 30
..........................................................................
Morgan Stanley Dean Witter 5,400 377
..........................................................................
Pearson (GBP) 27,000 485
..........................................................................
Providian Financial 500 46
..........................................................................
Unidanmark (Class A) (DKK) 6,000 489
..........................................................................
10,368
................
Total Financial 41,217
................
UTILITIES 4.7%
Telephone 3.0%
Aliant Communications 13,600 388
..........................................................................
ALLTEL 15,200 806
..........................................................................
AT&T 31,350 1,953
..........................................................................
BellSouth 9,800 855
..........................................................................
British Telecommunications ADR 4,600 636
..........................................................................
Compania de Telecomunicaciones de Chile
(Class A) ADR 4,350 101
..........................................................................
Frontier 29,200 880
..........................................................................
GTE 5,100 316
..........................................................................
Hong Kong Telecommunications ADR 11,614 218
..........................................................................
Nippon Telegraph & Telephone (JPY) 50 373
..........................................................................
Rural Cellular (Class A) * 5,700 61
..........................................................................
SBC Communications 48,100 2,306
..........................................................................
Telebras ADR * 7,800 740
..........................................................................
Telecom Corp. of New Zealand ADR 15,100 507
..........................................................................
Telecom Italia (ITL) 62,775 508
..........................................................................
Telecom Italia Mobile (ITL) 80,000 524
..........................................................................
Telefonica de Espana ADR 3,500 488
..........................................................................
Telefonos de Mexico (Class L) ADR 8,900 414
..........................................................................
Telekom Malaysia (MYR) 100 0
..........................................................................
Western Wireless * 4,600 83
................
12,157
................
Electric Utilities 1.7%
Cleco 3,600 123
..........................................................................
Electrabel (BEF) 1,090 420
..........................................................................
Empresa Nacional de Electricidad Chile ADR 5,500 59
..........................................................................
5
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Endesa ADR 14,500 $ 377
..........................................................................
FirstEnergy 42,417 1,312
..........................................................................
GPU 11,000 482
..........................................................................
Hong Kong Electric (HKD) 71,000 236
..........................................................................
PECO Energy 15,500 622
..........................................................................
Texas Utilities 31,100 1,386
..........................................................................
Unicom 31,300 1,180
..........................................................................
Veba (DEM) 9,780 542
..........................................................................
6,739
................
Total Utilities 18,896
................
CONSUMER NONDURABLES 12.1%
Cosmetics 0.6%
Gillette 6,800 312
..........................................................................
International Flavors & Fragrances 36,900 1,545
..........................................................................
Kao (JPY) 40,000 757
..........................................................................
2,614
................
Beverages 0.9%
Anheuser-Busch 27,800 1,685
..........................................................................
Coca-Cola 2,700 189
..........................................................................
Diageo ADR 8,075 369
..........................................................................
LVMH (FRF) 2,845 550
..........................................................................
PepsiCo 19,800 766
..........................................................................
3,559
................
Food Processing 2.2%
American Italian Pasta * 2,400 61
..........................................................................
Bestfoods 12,500 727
..........................................................................
Cadbury Schweppes (GBP) 3,500 53
..........................................................................
Cadbury Schweppes ADR 8,500 513
..........................................................................
Campbell 6,500 371
..........................................................................
CSM (NLG) 4,800 261
..........................................................................
Danisco (DKK) 4,800 248
..........................................................................
Eridania Beghin-Say (FRF) 2,500 463
..........................................................................
General Mills 16,560 1,250
..........................................................................
Heinz 5,400 315
..........................................................................
Imperial Holly 12,800 110
..........................................................................
McCormick 23,200 775
..........................................................................
6
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Nestle (CHF) 525 $ 1,090
..........................................................................
Ralston Purina 25,800 898
..........................................................................
Sara Lee 26,100 1,524
..........................................................................
Seneca Foods (Class A) * 1,900 23
..........................................................................
Seneca Foods (Class B) * 1,900 23
..........................................................................
United Natural Foods * 2,500 61
..........................................................................
8,766
................
Hospital Supplies/Hospital Management 0.7%
American Oncology Resources * 11,100 124
..........................................................................
Arterial Vascular Engineering * 2,500 122
..........................................................................
Boston Scientific * 200 10
..........................................................................
Guidant 4,200 361
..........................................................................
HealthSouth * 27,400 368
..........................................................................
Medtronic 2,300 156
..........................................................................
Mentor 11,500 214
..........................................................................
Pediatrix Medical Group * 1,100 59
..........................................................................
Quorum Health Group * 7,600 127
..........................................................................
Renal Care Group * 5,900 159
..........................................................................
Smith & Nephew (GBP) 56,000 154
..........................................................................
Steris * 5,000 134
..........................................................................
Terumo (JPY) 39,000 866
..........................................................................
2,854
................
Pharmaceuticals 4.1%
Alkermes * 4,300 80
..........................................................................
American Home Products 43,760 2,330
..........................................................................
Astra (Class B) (SEK) 23,800 426
..........................................................................
Biogen * 9,900 752
..........................................................................
Bristol-Myers Squibb 16,200 1,986
..........................................................................
COR Therapeutics * 1,800 21
..........................................................................
Coulter Pharmaceutical * 2,500 71
..........................................................................
Eli Lilly 8,400 753
..........................................................................
Gehe (DEM) 3,100 198
..........................................................................
Gilead Sciences * 1,100 34
..........................................................................
Glaxo Wellcome ADR 9,100 578
..........................................................................
Johnson & Johnson 7,800 634
..........................................................................
Merck 9,400 1,456
..........................................................................
Millennium Pharmaceuticals * 4,700 96
..........................................................................
Neurocrine Biosciences * 3,500 24
..........................................................................
7
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Novartis (CHF) 470 $ 882
..........................................................................
PathoGenesis * 800 39
..........................................................................
Pfizer 17,220 1,922
..........................................................................
Pharmacia & Upjohn 14,660 763
..........................................................................
PharmaPrint * 6,300 76
..........................................................................
Schering-Plough 8,900 947
..........................................................................
Takeda Chemical Industries (JPY) 25,000 842
..........................................................................
Warner-Lambert 18,800 1,419
..........................................................................
16,329
...............
Biotechnology 0.0%
Cell Genesys * 6,700 33
..........................................................................
Zonagen * 2,300 44
..........................................................................
77
...............
Health Care Services 0.4%
Altana AG (DEM) 3,100 216
..........................................................................
AmeriPath * 10,300 47
..........................................................................
Concentra Managed Care * 10,100 117
..........................................................................
Inhale Therapeutic Systems * 2,800 90
..........................................................................
Monarch Dental * 3,800 43
..........................................................................
Northfield Laboratories * 4,000 53
..........................................................................
Orthodontic Centers of America * 4,900 94
..........................................................................
ProMedCo * 7,600 40
..........................................................................
SteriGenics International * 7,100 183
..........................................................................
United HealthCare 17,200 776
..........................................................................
1,659
................
Miscellaneous Consumer Products 3.2%
Benetton Group (ITL) 145,600 267
..........................................................................
Bridgestone (JPY) 24,000 561
..........................................................................
Colgate-Palmolive 19,600 1,678
..........................................................................
Cone Mills * 12,000 55
..........................................................................
CSS Industries * 2,300 68
..........................................................................
Culp 1,700 15
..........................................................................
Dan River * 9,300 75
..........................................................................
Equity Corp. International * 6,300 163
..........................................................................
Hasbro 16,700 585
..........................................................................
Huhtamaki (FIM) 3,000 112
..........................................................................
Kuraray (JPY) 44,000 458
..........................................................................
Lion Nathan (NZD) 166,400 424
..........................................................................
8
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Newell 8,200 $ 363
..........................................................................
Philip Morris 58,250 3,258
..........................................................................
Philips Electronics ADR 6,500 411
..........................................................................
Procter & Gamble 4,500 394
..........................................................................
Service Corp. International 9,600 359
..........................................................................
Sola * 8,100 129
..........................................................................
Tomkins (GBP) 20,000 93
..........................................................................
Tomkins ADR 11,100 201
..........................................................................
Unifi 34,400 662
..........................................................................
Unilever N.V. ADR 8,600 665
..........................................................................
US Can * 5,400 95
..........................................................................
UST 34,500 1,199
..........................................................................
WestPoint Stevens * 2,900 87
..........................................................................
Yue Yuen Industrial (HKD) 127,000 248
..........................................................................
12,625
................
Total Consumer Nondurables 48,483
................
CONSUMER SERVICES 6.6%
General Merchandisers 1.6%
Bon-Ton Stores * 12,900 100
..........................................................................
Carrefour (FRF) 600 425
..........................................................................
Casey's General Stores 15,600 215
..........................................................................
Columbia Sportswear * 4,900 109
..........................................................................
Costco Companies * 1,000 63
..........................................................................
Dayton Hudson 14,200 639
..........................................................................
Fred Meyer * 16,400 834
..........................................................................
JUSCO (JPY) 18,000 343
..........................................................................
Marui (JPY) 14,000 249
..........................................................................
Pinault Printemps Redoute (FRF) 4,500 767
..........................................................................
Saks * 20,300 558
..........................................................................
Tesco (GBP) 180,446 533
..........................................................................
Wal-Mart 14,300 1,077
..........................................................................
Warnaco Group (Class A) 18,600 460
..........................................................................
6,372
................
Specialty Merchandisers 2.1%
American Stores 46,600 1,564
..........................................................................
Christian Dior (FRF) 2,200 239
..........................................................................
9
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CompuCom Systems * 16,000 $ 61
..........................................................................
CVS 22,270 1,100
..........................................................................
General Nutrition * 7,700 137
..........................................................................
Home Depot 13,800 687
..........................................................................
Kroger * 5,500 292
..........................................................................
Omron (JPY) 35,000 418
..........................................................................
Performance Food Group * 4,900 119
..........................................................................
Rite Aid 15,800 733
..........................................................................
Safeway * 27,600 1,458
..........................................................................
St. John Knits 3,800 76
..........................................................................
Toys "R" Us * 38,700 764
..........................................................................
Tupperware 48,200 840
..........................................................................
Urban Outfitters * 3,700 52
..........................................................................
8,540
................
Entertainment and Leisure 1.0%
Carnival (Class A) 14,500 500
..........................................................................
Disney 10,600 341
..........................................................................
Hutchison Whampoa (HKD) 115,000 817
..........................................................................
McDonald's 9,600 673
..........................................................................
MediaOne Group * 9,900 401
..........................................................................
Reader's Digest (Class A) 52,200 1,256
..........................................................................
Seattle Filmworks * 5,200 16
..........................................................................
Sharp (JPY) 16,000 141
..........................................................................
4,145
................
Media and Communications 1.9%
American Tower (Class A) * 1,500 35
..........................................................................
Asatsu (JPY) 14,000 297
..........................................................................
CBS 26,400 787
..........................................................................
Chancellor Media * 5,100 193
..........................................................................
Elsevier (NLG) 12,000 157
..........................................................................
Emmis Broadcasting (Class A) * 2,300 79
..........................................................................
Fox Entertainment Group 20,700 489
..........................................................................
France Telecom ADR 13,500 921
..........................................................................
Jacor Communications * 4,400 256
..........................................................................
Pegasus Communications * 2,900 48
..........................................................................
R.R. Donnelley 19,500 828
..........................................................................
Sinclair Broadcast Group (Class A) * 4,000 49
..........................................................................
Time Warner 12,800 1,354
..........................................................................
Tribune 12,100 776
..........................................................................
10
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Valassis Communications * 5,000 $ 214
..........................................................................
Vanguard Cellular (Class A) * 1,800 42
..........................................................................
Vodafone ADR 4,600 679
..........................................................................
Young Broadcasting (Class A) * 4,200 150
..........................................................................
7,354
................
Restaurants 0.0%
Logan's Roadhouse * 4,700 98
..........................................................................
PJ America * 2,100 41
..........................................................................
139
................
Total Consumer Services 26,550
................
EDUCATION 0.0%
ITT Educational Service * 4,400 145
..........................................................................
Total Education 145
................
CONSUMER CYCLICALS 3.2%
Automobiles and Related 0.4%
A.O. Smith (Class B) 13,500 336
..........................................................................
Cycle & Carriage (SGD) 22,000 76
..........................................................................
Federal-Mogul 7,500 426
..........................................................................
Honda ADR 6,800 493
..........................................................................
Keystone Automotive * 1,500 29
..........................................................................
Littelfuse * 4,500 105
..........................................................................
SPX * 2,700 156
..........................................................................
1,621
................
Building and Real Estate 1.9%
Apartment Investment & Management, REIT 3,000 103
..........................................................................
Arden Realty, REIT 6,700 154
..........................................................................
Cheung Kong Holdings (HKD) 84,000 605
..........................................................................
City Developments (SGD) 15,000 71
..........................................................................
Crescent Real Estate Equities, REIT 20,600 511
..........................................................................
DBS Land (SGD) 20,000 28
..........................................................................
EastGroup Properties, REIT 10,500 195
..........................................................................
Federal Realty Investment Trust, REIT 40,000 958
..........................................................................
First Washington Realty Trust, REIT 5,800 133
..........................................................................
Glenborough Realty Trust, REIT 2,600 56
..........................................................................
JP Realty, REIT 2,500 56
..........................................................................
Parkway Properties, REIT 7,800 235
..........................................................................
11
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Reckson Associates Realty, REIT 37,500 $ 865
..........................................................................
Simon Property Group, REIT 42,272 1,252
..........................................................................
Starwood Hotels & Resorts, REIT 62,400 1,895
..........................................................................
Tower Realty Trust, REIT 8,300 156
..........................................................................
Woodhead Industries 12,900 169
..........................................................................
7,442
................
Miscellaneous Consumer Durables 0.9%
CompX * 6,500 163
..........................................................................
Corning 40,800 1,637
..........................................................................
Eastman Kodak 1,300 94
..........................................................................
Harman International 1,800 77
..........................................................................
Masco 25,900 748
..........................................................................
OCE (NLG) 7,200 253
..........................................................................
Ricoh (JPY) 34,000 327
..........................................................................
Sony (JPY) 5,000 366
..........................................................................
3,665
................
Total Consumer Cyclicals 12,728
................
TECHNOLOGY 4.0%
Electronic Components 1.4%
American Superconductor * 1,900 19
..........................................................................
Analogic 6,500 232
..........................................................................
Burr Brown * 4,500 106
..........................................................................
EMC * 11,400 826
..........................................................................
Exar * 2,600 45
..........................................................................
Intel 10,800 1,162
..........................................................................
Linear Technology 2,400 168
..........................................................................
Maxim Integrated Products * 15,500 609
..........................................................................
Methode Electronics (Class A) 7,200 96
..........................................................................
Optek Technology * 6,500 117
..........................................................................
Planar Systems * 6,800 56
..........................................................................
PMC-Sierra * 1,100 59
..........................................................................
Texas Instruments 3,000 229
..........................................................................
Trident International * 7,000 70
..........................................................................
UBS (CHF) 4,806 1,446
..........................................................................
Xilinx * 3,700 188
..........................................................................
5,428
................
12
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Electronic Systems 0.5%
Applied Micro Circuits * 3,300 $ 111
..........................................................................
Electromagnetic Sciences * 7,200 97
..........................................................................
Hewlett-Packard 9,000 565
..........................................................................
Lifeline Systems * 3,800 98
..........................................................................
Lo-Jack * 7,600 71
..........................................................................
Nokia ADR 11,000 1,078
..........................................................................
2,020
................
Information Processing 0.3%
COMPAQ Computer 7,700 250
..........................................................................
Dell Computer * 6,300 383
..........................................................................
Hitachi ADR 4,500 266
..........................................................................
IBM 3,000 495
..........................................................................
1,394
................
Office Automation 0.1%
Ceridian * 3,600 234
..........................................................................
234
................
Specialized Computer 0.1%
Sun Microsystems * 5,800 429
..........................................................................
429
................
Telecommunications Equipment 1.1%
AirTouch Communications * 10,700 612
..........................................................................
Cisco Systems * 11,775 888
..........................................................................
LM Ericsson (Class B) ADR 18,000 497
..........................................................................
Lucent Technologies 900 77
..........................................................................
MCI WorldCom * 35,782 2,110
..........................................................................
Premisys Communications * 3,000 45
..........................................................................
Tellabs * 3,500 189
..........................................................................
West TeleServices * 2,700 31
..........................................................................
4,449
................
Aerospace and Defense 0.5%
AlliedSignal 30,900 1,360
..........................................................................
Raytheon (Class B) 8,500 471
..........................................................................
Woodward Governor 3,600 89
..........................................................................
1,920
................
Total Technology 15,874
................
13
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CAPITAL EQUIPMENT 2.5%
Electrical Equipment 1.6%
ABB (CHF) 200 $ 249
..........................................................................
Canon (JPY) 16,000 353
..........................................................................
GE 29,700 2,688
..........................................................................
Holophane * 8,100 185
..........................................................................
Matsushita Electric Works (JPY) 22,000 211
..........................................................................
Mitsubishi Electric (JPY) 37,000 94
..........................................................................
Siemens (DEM) 5,200 362
..........................................................................
Tyco International 34,121 2,245
..........................................................................
6,387
................
Capital Equipment 0.0%
Omniquip International 7,500 102
..........................................................................
102
................
Machinery 0.9%
..........................................................................
Danaher 30,100 1,373
..........................................................................
GKN (GBP) 44,600 492
..........................................................................
JLG Industries 9,700 159
..........................................................................
Man (DEM) 1,230 349
..........................................................................
NN Ball & Roller 5,900 37
..........................................................................
S I G Schweis (CHF) 620 400
..........................................................................
Teleflex 11,400 484
..........................................................................
Toolex Alpha * 4,800 54
..........................................................................
Valmet (FIM) 6,000 79
..........................................................................
3,427
................
Total Capital Equipment 9,916
................
BUSINESS SERVICES AND
TRANSPORTATION 6.4%
Computer Service and Software 2.5%
Adobe Systems 1,200 54
..........................................................................
America Online 8,400 735
..........................................................................
Analysts International 3,500 59
..........................................................................
Ascend Communications * 3,800 213
..........................................................................
Automatic Data Processing 11,500 885
..........................................................................
BISYS Group * 2,300 112
..........................................................................
BMC Software * 18,100 924
..........................................................................
14
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Computer Associates 2,700 $ 119
..........................................................................
Electronic Arts * 800 34
..........................................................................
First Data 19,484 520
..........................................................................
Galileo International 14,800 592
..........................................................................
Great Plains Software * 2,300 91
..........................................................................
HBO 25,200 628
..........................................................................
HCIA * 6,300 30
..........................................................................
Microsoft * 14,000 1,708
..........................................................................
Network Associates * 15,750 802
..........................................................................
Oracle * 13,000 446
..........................................................................
Parametric Technology * 40,400 688
..........................................................................
Peerless Systems * 5,600 45
..........................................................................
Phoenix Technologies * 3,400 24
..........................................................................
PSINet * 1,300 24
..........................................................................
Saville Systems ADR * 10,500 205
..........................................................................
Sterling Commerce * 9,600 348
..........................................................................
Summit Design * 4,700 41
..........................................................................
SunGard Data Systems * 11,100 355
..........................................................................
Synopsys * 500 24
..........................................................................
Vantive * 1,800 15
..........................................................................
Visio * 4,100 145
..........................................................................
9,866
................
Distribution Services 0.4%
Cardinal Health 3,142 216
..........................................................................
MSC * 5,000 119
..........................................................................
Primesource 3,100 21
..........................................................................
Richfood Holdings 9,600 178
..........................................................................
SED International Holdings * 7,000 33
..........................................................................
SunSource 3,800 79
..........................................................................
U.S. Foodservice * 13,645 627
..........................................................................
Watsco (Class A) 10,400 187
..........................................................................
1,460
................
Environmental 0.1%
CUNO * 5,000 74
..........................................................................
Rentokil Group (GBP) 21,700 143
..........................................................................
Waterlink * 10,900 41
..........................................................................
258
................
15
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Transportation Services 0.2%
C.H. Robinson Worldwide 3,600 $ 81
..........................................................................
Coach USA * 8,400 238
..........................................................................
Comfort Systems USA * 11,100 208
..........................................................................
Eagle USA Air Freight * 5,900 112
..........................................................................
Expeditors International of Washington 2,700 104
..........................................................................
Frozen Food Express 4,800 37
..........................................................................
Heartland Express * 2,300 39
..........................................................................
Hub Group (Class A) * 700 13
..........................................................................
International Shipholding 3,700 58
..........................................................................
Mitsubishi Heavy Industries (JPY) 31,000 116
..........................................................................
1,006
................
Miscellaneous Business Services 2.3%
Alternative Resources * 5,800 55
..........................................................................
Billing Information Concepts * 8,100 102
..........................................................................
British Airport Authorities (GBP) 32,047 355
..........................................................................
Browning-Ferris 38,900 1,147
..........................................................................
Cendant * 21,250 404
..........................................................................
CORT Business Services * 4,300 97
..........................................................................
Electro Rent * 9,300 107
..........................................................................
Equifax 9,800 407
..........................................................................
H&R Block 39,200 1,761
..........................................................................
Insituform Technologies (Class A) * 10,200 133
..........................................................................
Iron Mountain * 3,050 90
..........................................................................
McGrath RentCorp 5,800 117
..........................................................................
Metamor Worldwide * 3,100 73
..........................................................................
MPW Industrial Services Group * 4,100 48
..........................................................................
New England Business Service 9,600 307
..........................................................................
Omnicom 13,000 695
..........................................................................
Paging Network * 5,300 33
..........................................................................
Paxar * 6,200 65
..........................................................................
Renaissance Worldwide * 6,600 47
..........................................................................
Romac International * 8,200 114
..........................................................................
Shorewood Packaging * 14,700 218
..........................................................................
Strayer Education 6,200 231
..........................................................................
Superior Services * 1,600 29
..........................................................................
Tetra Tech * 9,625 201
..........................................................................
The Peterson Companies (Class A) * 3,700 89
..........................................................................
16
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
The Vincam Group * 2,900 $ 42
..........................................................................
Unitog 4,400 95
..........................................................................
Waste Management 48,926 2,098
..........................................................................
9,160
................
Airlines 0.4%
Delta 28,400 1,525
..........................................................................
KLM (NLG) 6,000 164
..........................................................................
KLM Royal Dutch Air ADR 700 20
..........................................................................
Midwest Express Holdings * 700 19
..........................................................................
Singapore Airlines (SGD) 13,000 90
..........................................................................
1,818
................
Railroads 0.5%
Burlington Northern Santa Fe 10,300 350
..........................................................................
Norfolk Southern 48,500 1,473
..........................................................................
1,823
................
Total Business Services and Transportation 25,391
................
ENERGY 4.2%
Energy Services 0.6%
Baker Hughes 28,000 513
..........................................................................
Carbo Ceramics 200 4
..........................................................................
Cooper Cameron * 800 19
..........................................................................
Elf Aquitaine ADR 5,000 311
..........................................................................
Halliburton 13,000 382
..........................................................................
Johnson Electric (HKD) 247,200 554
..........................................................................
Schlumberger 3,200 143
..........................................................................
Smith International * 400 10
..........................................................................
TOTAL ADR 6,300 385
..........................................................................
Weatherford International * 1,700 31
..........................................................................
2,352
................
Exploration & Production 0.0%
Rutherford-Moran Oil * 3,100 7
..........................................................................
Santos (AUD) 49,000 142
..........................................................................
149
................
Integrated Petroleum - Domestic 1.2%
Atlantic Richfield 11,600 771
..........................................................................
British Petroleum ADR 23,980 2,209
..........................................................................
17
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Occidental Petroleum 29,900 $ 606
..........................................................................
Unocal 11,300 383
..........................................................................
USX-Marathon 27,100 769
..........................................................................
4,738
................
Integrated Petroleum - International 2.4%
Amoco 38,500 2,269
..........................................................................
Chevron 5,000 418
..........................................................................
ENI S.P.A. ADR 7,900 483
..........................................................................
Exxon 11,960 898
..........................................................................
Mobil 33,200 2,861
..........................................................................
Repsol ADR 7,500 421
..........................................................................
Royal Dutch Petroleum ADR 11,800 555
..........................................................................
Shell Transport & Trading ADR 11,300 410
..........................................................................
Texaco 18,900 1,088
..........................................................................
9,403
................
Total Energy 16,642
................
PROCESS INDUSTRIES 3.4%
Diversified Chemicals 0.7%
Dow Chemical 15,400 1,499
..........................................................................
DuPont 13,400 787
..........................................................................
Hercules 22,500 740
..........................................................................
3,026
................
Specialty Chemicals 1.5%
3M 7,800 627
..........................................................................
A. Schulman 21,600 463
..........................................................................
Akzo Nobel (NLG) 8,300 340
..........................................................................
BASF AG (DEM) 12,180 461
..........................................................................
Bayer (DEM) 11,660 478
..........................................................................
CFC International * 2,100 16
..........................................................................
Furon 1,700 29
..........................................................................
Great Lakes Chemical 37,540 1,499
..........................................................................
Hauser * 6,900 31
..........................................................................
Octel * 7,385 107
..........................................................................
Pall 60,600 1,409
..........................................................................
Sumitomo Chemicals (JPY) 40,000 139
..........................................................................
Technip (FRF) 5,000 424
..........................................................................
6,023
................
18
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Paper and Paper Products 0.8%
Dai Nippon Printing (JPY) 20,000 $ 290
..........................................................................
Fort James 25,100 982
..........................................................................
Kimberly-Clark 35,900 1,889
..........................................................................
Smurfit Container * 4,000 57
..........................................................................
3,218
................
Forest Products 0.2%
Georgia-Pacific 9,500 539
..........................................................................
International Paper 6,700 291
..........................................................................
830
................
Building and Construction 0.2%
Blue Circle Industries (GBP) 35,418 179
..........................................................................
Holderbank Financiere Glarus (CHF) 350 405
..........................................................................
Layne Christensen * 7,700 81
..........................................................................
Simpson Manufacturing * 1,000 37
..........................................................................
702
................
Total Process Industries 13,799
................
BASIC MATERIALS 0.7%
Metals 0.6%
Anglo American Platinum (ZAR) 18,000 291
..........................................................................
AngloGold ADR 1,411 32
..........................................................................
Cambior 15,400 80
..........................................................................
Gibraltar Steel * 1,800 35
..........................................................................
Inco 42,600 492
..........................................................................
Matthews International (Class A) 9,500 281
..........................................................................
Reynolds Metals 19,200 1,054
..........................................................................
2,265
................
Mining 0.1%
Lonrho Africa (GBP) 10,107 11
..........................................................................
Prime Resources Group 5,400 41
..........................................................................
Rio Tinto (AUD) 19,500 252
..........................................................................
TVX Gold * 8,600 16
..........................................................................
320
................
Miscellaneous Materials 0.0%
Malayan Cement (MYR) 44,150 14
..........................................................................
Synthetic Industries * 2,300 39
..........................................................................
53
................
Total Basic Materials 2,638
................
19
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
MISCELLANEOUS 0.1%
Western Water * 1,400 $ 8
..........................................................................
Conglomerates 0.1%
Orkla (Class A) (NOK) 17,200 287
..........................................................................
287
................
Total Miscellaneous 295
................
FOREIGN 0.2%
Europe 0.1%
AXA Colonia Konzern (DEM) 2,000 235
..........................................................................
Svenska Cellulosa (SEK) 6,700 147
..........................................................................
382
................
Foreign 0.1%
Bobst (CHF) 236 321
..........................................................................
321
................
Total Foreign 703
................
Total Common Stocks (Cost $189,465) 233,277
................
Corporate Bonds 17.8%
AEI Holding, Sr. Notes, (144a), 10.00%,
11/15/07 $ 275,000 283
..........................................................................
Agricultural Minerals, Sr. Notes, 10.75%,
9/30/03 250,000 253
..........................................................................
American Airline, 9.71%, 1/2/07 38,411 45
..........................................................................
American Builders & Contractors Supply,
Sr. Sub. Notes 10.625%, 5/15/07 350,000 334
..........................................................................
American Express, 7.60%, 8/15/02 300,000 318
..........................................................................
American Pacific, Sr. Notes, (144a),
9.25%, 3/1/05 500,000 495
..........................................................................
American Radio Systems, Sr. Sub. Notes,
9.00%, 2/1/06 25,000 27
..........................................................................
American Safety Razor, Sr. Notes, 9.875%,
8/1/05 500,000 495
..........................................................................
Amerigas Partners, Sr. Notes, 10.125%,
4/15/07 200,000 202
..........................................................................
AMR, Deb., 9.00%, 9/15/16 * 100,000 112
..........................................................................
Archibald Candy, Sr. Secured Notes,
10.25%, 7/1/04 275,000 281
..........................................................................
Associated Materials, Sr. Sub. Notes,
9.25%, 3/1/08 500,000 500
..........................................................................
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 500,000 497
..........................................................................
Banque Parabas New York, 6.875%, 3/1/09 3,550,000 3,509
..........................................................................
Bway, Sr. Sub. Notes, 10.25%, 4/15/07 500,000 532
..........................................................................
20
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Capital One Master Trust, 6.356%, 6/15/11 $ 236,000 $ 244
................................................................................
Coach USA, Gtd. Sr. Sub. Notes, 9.375%, 7/1/07 375,000 388
................................................................................
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 500,000 547
................................................................................
Comcast Cable Communications, 8.50%, 5/1/27 3,550,000 4,368
................................................................................
Communications & Power Industries, Sr. Sub. Notes
12.00%, 8/1/05 500,000 529
................................................................................
Container Corp of America, Sr. Notes, 9.75%,
4/1/03 250,000 255
................................................................................
Courtyard by Marriott II, Sr. Secured Notes
10.75%, 2/1/08 100,000 105
................................................................................
Cox Communications, Deb., 7.25%, 11/15/15 600,000 657
................................................................................
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 500,000 512
................................................................................
Delta Mills, Sr. Notes, 9.625%, 9/1/07 250,000 249
................................................................................
Discover Card Master Trust 1, 7.75%, 4/16/02 100,000 102
................................................................................
Doane Products, Sr. Sub. Notes, (144a), 9.75%,
5/15/07 804,000 824
................................................................................
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 400,000 368
................................................................................
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 350,000 350
................................................................................
Energy Corporation of America, Sr. Sub. Notes
9.50%, 5/15/07 500,000 480
................................................................................
Fairchild Semiconductor, Sr. Sub. Notes
10.125%, 3/15/07 250,000 245
................................................................................
Fairfax Financial, 8.25%, 10/1/15 3,550,000 3,556
................................................................................
Federal National Mortgage Assn., 7.00%, 4/18/22 2,750,000 2,788
................................................................................
Federal-Mogul, Sr. Notes, 7.75%, 7/1/06 350,000 348
................................................................................
First Federal Financial, 11.75%, 10/1/04 250,000 260
................................................................................
Flores & Rucks, Sr. Sub. Notes, 9.75%, 10/1/06 250,000 268
................................................................................
Frontiervision, Sr. Notes, 11.00%, 10/15/06 250,000 281
................................................................................
Fundy Cable, Sr. Secured 2nd Priority Notes
11.00%, 11/15/05 300,000 321
................................................................................
Furon, Sr. Sub. Notes, (144a), 8.125%, 3/1/08 500,000 495
................................................................................
Grand Casinos, Sr. Sub. Notes, 10.125%, 12/1/03 500,000 547
................................................................................
Harcourt General, Sr. Deb., 7.20%, 8/1/27 3,550,000 3,373
................................................................................
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 500,000 545
................................................................................
HMH Properties, Sr. Notes, 7.875%, 8/1/08 500,000 490
................................................................................
Holmes Products, Gtd. Notes, 9.875%, 11/15/07 500,000 480
................................................................................
Host Marriott Travel, Sr. Notes, 9.50%, 5/15/05 250,000 262
................................................................................
ICG Services, Sr. Disc. Notes, STEP, 0%, 9/15/05 400,000 327
................................................................................
IMC Home Equity Loan Trust, Zero Coupon, 4/20/26 867,000 869
................................................................................
21
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Intermedia Communications, Sr. Notes,
8.50%, 1/15/08 $500,000 $ 495
.........................................................................
International Wire, Sr. Sub. Notes,
11.75%, 6/1/05 350,000 366
.........................................................................
Intertek Finance, Sr. Sub. Notes,
10.25%, 11/1/06 350,000 351
.........................................................................
Iron Mountain, Sr. Sub. Notes, 8.75%,
9/30/09 500,000 514
.........................................................................
Jitney-Jungle Stores, Sr. Sub. Notes,
12.00%, 3/1/06 500,000 561
.........................................................................
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 500,000 562
.........................................................................
Lehman Brothers Holdings, 7.41%, 5/25/99 200,000 201
.........................................................................
Lenfest Communications, Sr. Notes, 8.375%,
11/1/05 30,000 32
.........................................................................
Marcus Cable, Sr. Disc. Notes, STEP, 0%,
8/1/04 350,000 348
.........................................................................
Mastec, Sr. Sub. Notes, (144a), 7.75%,
2/1/08 250,000 241
.........................................................................
Mediacom Capital, Sr. Notes, (144a),
8.50%, 4/15/08 350,000 359
.........................................................................
Microcell Telecommunications, Sr. Disc. Notes
STEP, 0%, 6/1/06 100,000 76
.........................................................................
Nextel Communications, Sr. Disc. Notes
STEP, 0%, 10/31/07 800,000 508
.........................................................................
Niagara Mohawk
Sr. Disc. Notes, STEP, 0%, 7/1/10 600,000 457
..................................................................
Sr. Notes, 7.75%, 10/1/08 75,000 81
..................................................................
Northland Cable Television, Sr.
Sub. Notes, 10.25%, 11/15/07 250,000 265
.........................................................................
Ocwen Financial, Sr. Notes, 11.875%, 10/1/03 150,000 131
.........................................................................
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 150,000 161
.........................................................................
Owens Illinois, Sr. Notes, 7.35%, 5/15/08 3,550,000 3,506
.........................................................................
Paine Webber, Sr. Notes, 6.55%, 4/15/08 3,550,000 3,554
.........................................................................
Paragon Corporate Holdings, Sr.
Notes, (144a), 9.625%, 4/1/08 250,000 210
.........................................................................
Plastic Containers, Sr. Secured Notes,
10.00%, 12/15/06 540,000 567
.........................................................................
Price Communications Wireless, Sr. Notes, (144a)
9.125%, 12/15/06 500,000 520
.........................................................................
Pride Petroleum Services, Sr. Notes, 9.375%,
5/1/07 350,000 347
.........................................................................
Principal Mutual, (144a)
7.875%, 3/1/24 250,000 275
..................................................................
8.00%, 3/1/44 3,550,000 3,629
..................................................................
Purina Mills, Sr. Sub. Notes, (144a),
9.00%, 3/15/10 500,000 515
.........................................................................
Quest Diagnostics, Gtd. Sr. Sub. Notes,
10.75%, 12/15/06 475,000 527
.........................................................................
Qwest Communications
Sr. Disc. Notes, Zero Coupon, 10/15/07 500,000 389
..................................................................
Sr. Notes, (144a), 7.50%, 11/1/08 125,000 128
..................................................................
R & B Falcon, Sr. Notes, (144a), 6.95%, 4/15/08 3,550,000 3,333
.........................................................................
22
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Rio Hotel & Casino
Gtd. Sr. Sub. Notes, 9.50%, 4/15/07 $ 100,000 $ 110
...................................................................
Sr. Sub. Notes, 10.625%, 7/15/05 250,000 272
...................................................................
Rogers Cablesystems, Sr. Sec. 2nd Priority
Notes 10.00%, 3/15/05 250,000 279
..........................................................................
Rouse, 8.50%, 1/15/03 25,000 26
..........................................................................
Rural/Metro, Sr. Notes, 7.875%, 3/15/08 325,000 302
..........................................................................
Safelite Glass, Sr. Sub. Notes, (144a),
9.875%, 12/15/06 225,000 221
..........................................................................
Six Flags Entertainment, Sr. Notes,
8.875%, 4/1/06 350,000 364
..........................................................................
Six Flags Theme Parks, Sr. Sub. Disc. Notes
12.25%, 6/15/05 500,000 555
..........................................................................
Smithfield Foods, Sr. Sub. Notes, (144a),
7.625%, 2/15/08 50,000 50
..........................................................................
Specialty Retailers, Sr. Notes, 8.50%,
7/15/05 100,000 92
..........................................................................
Sprint, 6.125%, 11/15/08 1,700,000 1,730
..........................................................................
Standard Credit Card Master Trust,
5.50%, 2/7/00 100,000 100
..........................................................................
Stena, Sr. Notes, 10.50%, 12/15/05 500,000 520
..........................................................................
Synthetic Industries, Sr. Sub. Notes,
9.25%, 2/15/07 350,000 360
..........................................................................
Tenet Healthcare, Sr. Sub. Notes,
8.625%, 1/15/07 250,000 264
..........................................................................
Texas-New Mexico Power, Deb., 12.50%,
1/15/99 120,000 121
..........................................................................
TV Azteca, Gtd. Sr. Notes, 10.50%, 2/15/07 100,000 89
..........................................................................
Union Planters Trust Capital,
Gtd. Bonds, 8.20%, 12/15/26 3,550,000 3,720
..........................................................................
United Air Lines, 9.20%, 3/22/08 214,047 246
..........................................................................
US Can, Sr. Gtd. Notes, 10.125%, 10/15/06 250,000 260
..........................................................................
Verio, Sr. Notes, 10.375%, 4/1/05 225,000 226
..........................................................................
Viasystems, Sr. Sub. Notes, 9.75%, 6/1/07 250,000 245
..........................................................................
Westamerica Bank, Sub. Notes, 6.99%, 9/30/03 250,000 254
..........................................................................
WorldCom, 7.75%, 4/1/07 3,550,000 4,001
..........................................................................
Total Corporate Bonds (Cost $72,171) 70,932
.............
Foreign Government Obligations/
Agencies 1.8%
Commonwealth of Australia, 9.50%, 8/15/03 AUD 10,000 7
..........................................................................
European Investment Bank
3.00%, 9/20/06 JPY 87,000,000 810
...................................................................
4.625%, 2/26/03 JPY 173,000,000 1,643
...................................................................
Federal Republic of Germany
6.00%, 7/4/07 DEM 715,000 482
...................................................................
23
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
6.50%, 7/15/03 DEM 80,000 $ 53
.........................................................................
8.375%, 5/21/01 DEM 1,400,000 922
.........................................................................
8.50%, 8/21/00 DEM 65,000 42
................................................................................
Government of Canada
6.50%, 6/1/04 CAD 9,000 6
.........................................................................
8.50%, 4/1/02 CAD 645,000 469
.........................................................................
9.75%, 6/1/21 CAD 30,000 31
.........................................................................
Government of France
5.50%, 4/25/07 FRF 2,480,000 484
.........................................................................
8.25%, 2/27/04 FRF 324,000 69
.........................................................................
8.50%, 11/25/02 FRF 4,766,000 994
.........................................................................
Government of Japan ++
4.50%, 6/20/03 JPY 15,700,000 147
.........................................................................
Int'l Bank for Reconstruction & Development
6.75%, 3/15/00 JPY 2,000,000 18
.........................................................................
Kingdom of Belgium
7.25%, 4/29/04 BEF 750,000 25
.........................................................................
Kingdom of Denmark
7.00%, 12/15/04 DKK 55,000 10
.........................................................................
Kingdom of Spain
8.00%, 5/30/04 ESP 100,000 1
.........................................................................
Kingdom of Sweden
6.00%, 2/9/05 SEK 100,000 14
.........................................................................
Republic of Italy
8.50%, 8/1/04 ITL 100,000,000 73
.........................................................................
United Kingdom Treasury Notes
7.50%, 12/7/06 GBP 140,000 273
.........................................................................
8.00%, 6/10/03 GBP 303,000 551
.........................................................................
8.50%, 12/7/05 GBP 10,000 20
.........................................................................
9.00%, 3/3/00 GBP 24,000 42
.........................................................................
Total Foreign Government Obligations/Agencies (Cost $7,034) 7,186
.............
U.S. Government Mortgage-Backed
Securities 8.5%
Federal Home Loan Mortgage Corp.
6.00%, 4/1/24 - 11/1/25 $ 210,306 208
.........................................................................
6.50%, 10/1/08 - 3/15/11 3,493,050 3,545
.........................................................................
24
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
7.00%, 10/1/08 - 10/1/25 $ 99,621 $ 102
........................................................................
8.00%, 1/1/25 97,433 101
........................................................................
9.00%, 11/1/04 17,933 18
................................................................................
Federal National Mortgage Assn.
6.00%, 9/1/08 69,045 69
........................................................................
6.50%, 3/1/09 - 8/1/23 186,725 189
........................................................................
7.00%, 8/1/23 - 1/1/26 535,777 547
........................................................................
7.50%, 11/1/07 101,014 104
........................................................................
8.00%, 5/1/07 - 6/1/10 90,352 93
........................................................................
8.50%, 8/1/06 - 11/1/21 49,690 52
........................................................................
9.00%, 5/1/01 20,654 21
........................................................................
REMIC, 8.00%, 2/25/07 100,000 103
................................................................................
Government National Mortgage Assn., I
6.00%, 5/15/17 - 12/15/23 2,700,796 2,679
........................................................................
6.50%, 12/15/23 - 10/15/27 6,193,036 6,259
........................................................................
7.00%, 4/15/24 - 2/15/28 15,356,328 15,716
........................................................................
7.50%, 2/15/16 - 6/15/26 2,195,630 2,271
........................................................................
8.00%, 3/15/22 - 10/20/25 788,567 821
........................................................................
7.00%, 8/15/25 - 12/15/27 961,469 984
................................................................................
Total U.S. Government Mortgage-Backed Securities (Cost $32,754) 33,882
.............
U.S. Government Obligations/
Agencies 7.1%
Government Trust Certificates
9.25%, 11/15/01 39,322 42
................................................................................
Resolution Funding
8.125%, 10/15/19 210,000 275
................................................................................
Tennessee Valley Authority
5.88%, 4/1/36 2,000,000 2,080
........................................................................
6.235%, 7/15/45 2,000,000 2,112
................................................................................
U.S. Treasury Bonds
6.125%, 11/15/27 4,000,000 4,512
........................................................................
6.75%, 8/15/26 16,050,000 19,347
................................................................................
Total U.S. Government Obligations/Agencies (Cost $25,656) 28,368
.............
25
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Short-Term Investments 5.8%
Certificates of Deposit 0.0%
Chase Manhattan Bank, N.A., fixed deposit
5.50%, 12/9/98 (MYR) $ 272,726 $ 61
...............................................................................
61
.............
Money Market Funds 5.8%
Reserve Investment Fund, 5.34% # 23,016,216 23,016
................................................................................
23,016
.............
Total Short-Term Investments (Cost $23,077) 23,077
.............
Total Investments in Securities
99.4% of Net Assets (Cost $350,157) $ 396,722
Other Assets Less Liabilities 2,267
.............
NET ASSETS $ 398,989
-------------
* Non-income producing
# Seven day yield
++ Securities contain some restrictions as to public resale - total of such
securities at period-end amounts to 0.04% of net assets
ADR American Depository Receipt
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit STEP Stepped coupon note for
which the interest rate will adjust on specified future date(s)
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers - total of such securities at period-end amounts to
2.9% of net assets.
AUD Australian dollar
BEF 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
ZAR South African rand
L Local registered shares
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1998
- -----------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value (cost $350,157) $ 396,722
Securities lending collateral 39,820
Other assets 3,271
..............
Total assets 439,813
..............
Liabilities
Obligation to return securities lending collateral 39,820
Other liabilities 1,004
..............
Total liabilities 40,824
..............
NET ASSETS $ 398,989
--------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 1,909
Accumulated net realized gain/loss - net of distributions 13,261
Net unrealized gain (loss) 46,574
Paid-in-capital applicable to 24,944,717 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the corporation authorized 337,245
..............
NET ASSETS $ 398,989
--------------
NET ASSET VALUE PER SHARE $ 15.99
--------------
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
6 Months
Ended
11/30/98
Investment Income
Income
Interest $ 5,307
Dividend 1,794
..............
Total income 7,101
..............
Expenses
Investment management 1,090
Shareholder servicing 528
Custody and accounting 86
Registration 40
Prospectus and shareholder reports 24
Legal and audit 7
Directors 3
Miscellaneous 12
..............
Total expenses 1,790
..............
Net investment income 5,311
..............
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 3,365
Foreign currency transactions (43)
..............
Net realized gain (loss) 3,322
..............
Change in net unrealized gain or loss
Securities 1,839
Other assets and liabilities
denominated in foreign currencies 31
..............
Change in net unrealized gain or loss 1,870
..............
Net realized and unrealized gain (loss) 5,192
..............
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 10,503
--------------
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited
- --------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
11/30/98 5/31/98
Increase (Decrease) in Net Assets
Operations
Net investment income $ 5,311 $ 8,667
Net realized gain (loss) 3,322 12,398
Change in net unrealized gain or loss 1,870 26,365
...........................
Increase (decrease) in net assets from operations 10,503 47,430
...........................
Distributions to shareholders
Net investment income (5,190) (8,060)
Net realized gain - (5,729)
...........................
Decrease in net assets from distributions (5,190) (13,789)
...........................
Capital share transactions*
Shares sold 110,573 141,418
Distributions reinvested 5,153 13,698
Shares redeemed (50,406) (66,284)
...........................
Increase (decrease) in net assets from capital
share transactions 65,320 88,832
...........................
Net Assets
Increase (decrease) during period 70,633 122,473
Beginning of period 328,356 205,883
...........................
End of period $ 398,989 $ 328,356
---------------------------
*Share information
Shares sold 7,210 9,497
Distributions reinvested 333 933
Shares redeemed (3,271) (4,395)
...........................
Increase (decrease) in shares outstanding 4,272 6,035
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1998
- ---------------------------------
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
Balanced Fund (the fund), a diversified, open-end management investment
company, is one of the portfolios established by the corporation and
commenced operations on July 29, 1994.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company
industry; these principles may require the use of estimates by fund
management.
Valuation Equity securities listed or regularly traded on a securities
exchange are valued at the last quoted sales price on the day the
valuations are made. A security which is listed or traded on more than one
exchange is valued at the quotation on the exchange determined to be the
primary market for such security. Listed securities not traded on a
particular day and securities regularly traded in the over-the-counter
market are valued at the mean of the latest bid and asked prices. 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 amortized cost which,
when combined with accrued interest, approximates fair value.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of
such currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of the fund, as authorized by the Board of Directors.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting
period. Purchases and sales
30
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
of securities and income and expenses are translated into U.S. dollars at
the prevailing exchange rate on the dates of such transactions. The effect
of changes in foreign exchange rates on realized and unrealized security
gains and losses is reflected as a component of such gains and losses.
Premiums and Discounts Premiums and discounts on debt securities, other
than mortgage-backed securities (MBS), are amortized for both financial
reporting and tax purposes. Premiums and discounts on MBS are recognized
upon disposition or principal repayment as gain or loss for financial
reporting purposes. For tax purposes, premiums and discounts on MBS
acquired on or before June 8, 1997 are recognized upon disposition or
principal repayment as ordinary income. For MBS acquired after June 8,
1997, premiums are recognized as gain or loss; discounts are recognized as
gain or loss, except to the extent of accrued market discount.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and
losses are reported on the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with federal income tax regulations and may differ from those determined
in accordance with generally accepted accounting principles.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the
following practices to manage exposure to certain risks or enhance
performance. The investment objective, policies, program, and risk factors
of the fund are described more fully in the fund's prospectus and
Statement of Additional Information.
Securities Lending The fund lends its securities to approved brokers to
earn additional income and receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a
money market pooled account by the fund's lending agent. Collateral is
maintained over the life of the loan in an amount not less than 100% of
the value of loaned securities. Although risk is mitigated by the
collateral, the fund could experience a delay in recovering its securities
and a possible loss of income or value if the borrower fails to return
them. At November 30, 1998, the value of loaned securities was
$38,267,000; aggregate collateral consisted of $39,820,000 in the
securities lending collateral pool.
31
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
Other Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $106,095,000 and $57,226,000,
respectively, for the six months ended November 30, 1998. Purchases and
sales of U.S. government securities aggregated $13,146,000 and $8,530,000,
respectively, for the six months ended November 30, 1998.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends
to continue to qualify as a regulated investment company and distribute
all of its taxable income.
At November 30, 1998, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$350,157,000. Net unrealized gain aggregated $46,565,000, of which
$57,811,000 related to appreciated investments and $11,246,000 to
depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment
management fee, of which $184,000 was payable at November 30, 1998. The
fee is computed daily and paid monthly, and consists of an individual fund
fee equal to 0.25% of average daily net assets and a group fee. The group
fee is based on the combined assets of certain mutual funds sponsored by
the manager or Rowe Price-Fleming International, Inc. (the group). The
group fee rate ranges from 0.48% for the first $1 billion of assets to
0.30% for assets in excess of $80 billion. At November 30, 1998, and for
the six months then ended, the effective annual group fee rate was 0.32%.
The 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 was
required to bear any expenses through May 31, 1998, which would cause the
fund's ratio of expenses to average net assets to exceed 1.05%.
Thereafter, through May 31, 2000, the 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
the fund's ratio of expenses to average net assets to exceed 1.05%.
Pursuant to this agreement, $62,000 of unaccrued 1997 fees were repaid
during the six months ended November 30, 1998.
32
<PAGE>
T. Rowe Price Personal Strategy Balanced Fund
- --------------------------------------------------------------------------------
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund
receives certain other services. The manager computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services,
Inc. is the fund's transfer and dividend disbursing agent and provides
shareholder and administrative services to the fund. T. Rowe Price
Retirement Plan Services Inc. provides subaccounting and recordkeeping
services for certain retirement accounts invested in the fund. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $489,000 for the six months ended November 30, 1998, of which
$68,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and
other accounts managed by T. Rowe Price and its affiliates and are not
available to the public. The Reserve Funds pay no investment management
fees. Distributions from the Reserve Funds to the fund for the six months
ended November 30, 1998, totaled $358,000 and are reflected as interest
income in the accompanying Statement of Operations.
33
<PAGE>
T. Rowe Price Shareholder Services
- --------------------------------------------------------------------------------
INVESTMENT SERVICES AND INFORMATION
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your
distributions.
Automated 24-Hour Services Including Tele*Access(R) and the T.
Rowe Price Web site on the Internet. Address: www.troweprice.com
DISCOUNT BROKERAGE*
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates.
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe
Price.
Shareholder Reports Fund managers' reviews of their strategies
and results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund
results.
Insights Educational reports on investment strategies and
financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing,
Personal Strategy Planner, Retirees Financial Guide, and
Retirement Planning Kit.
*A division of T. Rowe Price Investment Services, Inc. Member
NASD/SIPC.
34
<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.
35
<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. C11-059 11/30/98
