<PAGE>
- --------------------------------------------------------------------------------
Semiannual Report - Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price
Personal Strategy
Growth Fund
---------------------
November 30, 1998
---------------------
<PAGE>
T. Rowe Price Personal Strategy Growth 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 $ 18.05 $ 15.20 $ 13.69 $ 11.44 $ 10.00
...................................................
Investment activities
Net investment income 0.15* 0.29* 0.27* 0.30* 0.25*
Net realized and
unrealized gain (loss) 0.18 3.01 2.37 2.29 1.30
...................................................
Total from investment
activities 0.33 3.30 2.64 2.59 1.55
...................................................
Distributions
Net investment income - (0.26) (0.24) (0.27) (0.11)
Net realized gain - (0.19) (0.89) (0.07) -
...................................................
Total distributions - (0.45) (1.13) (0.34) (0.11)
...................................................
NET ASSET VALUE
End of period $ 18.38 $ 18.05 $ 15.20 $ 13.69 $ 11.44
---------------------------------------------------
Ratios/Supplemental Data
Total return/\ 1.83%* 22.02%* 19.89%* 22.83%* 15.65%*
...................................................
Ratio of expenses to
average net assets 1.10%*+ 1.10%* 1.10%* 1.10%* 1.10%*+
...................................................
Ratio of net investment
income to average
net assets 1.95%*+ 2.15%* 2.24%* 2.27%* 2.76%*+
...................................................
Portfolio turnover rate 49.8%+ 33.3% 39.6% 39.5% 25.7%+
...................................................
Net assets, end of period
(in thousands) $166,212 $147,347 $ 67,552 $ 24,954 $ 10,748
...................................................
/\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 1.10% voluntary expense limitation in effect
through 5/31/00.
+ Annualized
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1998
- ----------------------------
Portfolio of Investments Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Common Stocks 74.1%
FINANCIAL 12.9%
Bank and Trust 7.5%
Abbey National (GBP) 18,000 $ 372
.........................................................................
ABN Amro (NLG) 6,400 132
.........................................................................
Air Liquide (L) (FRF) 1,158 197
.........................................................................
Albank Financial 1,000 68
.........................................................................
Australia & New Zealand Banking ADR 3,600 119
.........................................................................
Banca Commerciale Italiana (ITL) 40,700 278
.........................................................................
Banco de Bilbao Vizcaya ADR 15,500 244
.........................................................................
Banco Frances del Rio de la Plata (Class B) ADR 6,000 145
.........................................................................
Bank of New York 13,500 462
.........................................................................
Bank One 14,330 735
.........................................................................
BankAmerica 18,600 1,213
.........................................................................
Bankgesellschaft Berlin (DEM) 6,800 116
.........................................................................
Barclay's (GBP) 12,000 273
.........................................................................
Chase Manhattan 12,300 780
.........................................................................
Citigroup 23,899 1,199
.........................................................................
Citizens Banking 2,500 82
.........................................................................
Deutsche Bank (DEM) 2,730 169
.........................................................................
Development Bank of Singapore (SGD) 3,300 25
.........................................................................
Downey Financial 3,400 88
.........................................................................
Dresdner Bank (DEM) 3,100 139
.........................................................................
First Bell Bancorp 1,100 17
.........................................................................
First Mariner Bancorp * 1,600 23
.........................................................................
First Security 1,600 32
.........................................................................
First Union 9,300 565
.........................................................................
Frankfort First Bancorp 1,100 17
.........................................................................
Glacier Bancorp 4,070 86
.........................................................................
HSBC Holdings (GBP) 14,900 405
.........................................................................
J. P. Morgan 3,530 377
.........................................................................
KBC Bancassurance Holding (BEF) 3,200 229
.........................................................................
KeyCorp 3,700 114
.........................................................................
Marshall & Ilsley 300 15
.........................................................................
3
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Mediobanca (ITL) 18,200 $ 220
.........................................................................
Mellon Bank 12,200 768
.........................................................................
Mercantile Bancorporation 800 35
.........................................................................
National City 4,500 303
.........................................................................
Overseas Chinese Bank (SGD) 4,200 26
.........................................................................
Societe Generale (FRF) 1,729 272
.........................................................................
State Street 1,000 69
.........................................................................
Summit Bancorp 2,100 88
.........................................................................
Svenska Handelsbank (SEK) 6,000 242
.........................................................................
U.S. Bancorp 3,000 110
.........................................................................
Washington Mutual 13,950 541
.........................................................................
Wells Fargo 26,500 954
.........................................................................
WestAmerica 1,100 40
.........................................................................
Westpac Bank (AUD) 9,000 60
.........................................................................
12,444
...............
Insurance 2.2%
ACE Limited 16,000 512
.........................................................................
Allstate 3,100 126
.........................................................................
American General 4,100 289
.........................................................................
American International Group 1,150 108
.........................................................................
EXEL (Class A) 8,170 614
.........................................................................
General Re 600 140
.........................................................................
Harleysville Group 2,700 57
.........................................................................
PartnerRe Holdings 3,100 137
.........................................................................
Poe & Brown 1,800 63
.........................................................................
Selective Insurance 1,900 36
.........................................................................
St. Paul Companies 12,400 437
.........................................................................
Sumitomo Marine & Fire Insurance (JPY) 33,000 197
.........................................................................
Travelers Property Casualty (Class A) 18,200 627
.........................................................................
UNUM 4,400 237
.........................................................................
W. R. Berkley 2,000 67
.........................................................................
3,647
...............
Financial Services 3.2%
American Express 7,700 771
.........................................................................
Associates First Capital (Class A) 4,900 382
.........................................................................
AXA (FRF) 3,000 388
.........................................................................
Capital One Financial 3,100 341
.........................................................................
Delta Financial * 2,600 14
.........................................................................
4
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Fannie Mae 17,900 $ 1,302
.........................................................................
Financial Federal* 800 21
.........................................................................
Freddie Mac 17,600 1,065
.........................................................................
Household International 3,300 129
.........................................................................
ING Groep (NLG) 4,350 249
.........................................................................
ITLA Capital* 1,100 19
.........................................................................
Morgan Stanley Dean Witter 2,900 202
.........................................................................
Pearson (GBP) 14,000 252
.........................................................................
Providian Financial 300 28
.........................................................................
Unidanmark (Class A) (DKK) 2,700 220
.........................................................................
5,383
...............
Total Financial 21,474
...............
UTILITIES 6.1%
Telephone 3.9%
Aliant Communications 6,900 197
.........................................................................
ALLTEL 8,400 445
.........................................................................
AT&T 15,650 975
.........................................................................
BellSouth 5,200 454
.........................................................................
British Telecommunications ADR 2,200 304
.........................................................................
Compania de Telecomunicaciones de Chile
(Class A) ADR 4,050 94
.........................................................................
Frontier 15,500 467
.........................................................................
GTE 3,400 211
.........................................................................
Hong Kong Telecommunications ADR 6,432 121
.........................................................................
Nippon Telegraph & Telephone (JPY) 29 216
.........................................................................
Rural Cellular (Class A)* 3,100 33
.........................................................................
SBC Communications 25,900 1,242
.........................................................................
Telebras ADR* 3,900 370
.........................................................................
Telecom Corp. of New Zealand ADR 8,600 289
.........................................................................
Telecom Italia (ITL) 31,440 255
.........................................................................
Telecom Italia Mobile (ITL) 41,000 268
.........................................................................
Telefonica de Espana ADR 2,200 307
.........................................................................
Telefonos de Mexico (Class L) ADR 5,200 242
.........................................................................
Western Wireless* 1,900 34
.........................................................................
6,524
...............
5
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Electric Utilities 2.2%
Cleco 1,800 $ 62
.........................................................................
Electrabel (BEF) 740 286
.........................................................................
Empresa Nacional de Electricidad Chile ADR 5,600 60
.........................................................................
Endesa ADR 8,500 221
.........................................................................
FirstEnergy 21,737 672
.........................................................................
GPU 5,800 254
.........................................................................
Hong Kong Electric (HKD) 42,000 139
.........................................................................
PECO Energy 8,300 333
.........................................................................
Texas Utilities 16,000 713
.........................................................................
Unicom 16,600 626
.........................................................................
Veba (DEM) 5,620 311
.........................................................................
3,677
...............
Total Utilities 10,201
...............
CONSUMER NONDURABLES 15.5%
Cosmetics 0.8%
Gillette 3,600 165
.........................................................................
International Flavors & Fragrances 19,300 808
.........................................................................
Kao (JPY) 23,000 435
.........................................................................
1,408
...............
Beverages 1.2%
Anheuser-Busch 14,300 867
.........................................................................
Coca-Cola 1,400 98
.........................................................................
Diageo ADR 4,719 216
.........................................................................
LVMH (FRF) 1,655 320
.........................................................................
PepsiCo 11,100 429
.........................................................................
1,930
...............
Food Processing 3.0%
American Italian Pasta * 1,100 28
.........................................................................
Bestfoods 6,200 360
.........................................................................
Cadbury Schweppes (GBP) 900 14
.........................................................................
Cadbury Schweppes ADR 5,500 332
.........................................................................
Campbell 3,500 200
.........................................................................
CSM (NLG) 3,500 190
.........................................................................
Danisco (DKK) 3,100 160
.........................................................................
Eridania Beghin-Say (FRF) 1,500 278
.........................................................................
6
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
General Mills 8,560 $ 646
.........................................................................
Heinz 3,400 198
.........................................................................
Imperial Holly 6,300 54
.........................................................................
McCormick 12,400 414
.........................................................................
Nestle (CHF) 275 571
.........................................................................
Ralston Purina 15,200 529
.........................................................................
Sara Lee 14,900 870
.........................................................................
Seneca Foods (Class A) * 1,400 17
.........................................................................
Seneca Foods (Class B) * 700 9
.........................................................................
United Natural Foods * 1,300 32
.........................................................................
4,902
...............
Hospital Supplies/Hospital Management 0.8%
American Oncology Resources * 5,900 66
.........................................................................
Arterial Vascular Engineering * 1,400 68
.........................................................................
Boston Scientific * 100 5
.........................................................................
Guidant 2,200 189
.........................................................................
HealthSouth * 14,600 196
.........................................................................
Medtronic 1,400 95
.........................................................................
Mentor 5,700 106
.........................................................................
Pediatrix Medical Group * 500 27
.........................................................................
Quorum Health Group * 3,700 62
.........................................................................
Renal Care Group * 2,850 77
.........................................................................
Smith & Nephew (GBP) 22,000 61
.........................................................................
Steris * 2,800 75
.........................................................................
Terumo (JPY) 13,000 288
.........................................................................
1,315
...............
Pharmaceuticals 5.2%
Alkermes * 2,100 39
.........................................................................
American Home Products 22,860 1,217
.........................................................................
Astra (Class B) (SEK) 13,867 248
.........................................................................
Biogen * 5,300 402
.........................................................................
Bristol-Myers Squibb 8,600 1,054
.........................................................................
COR Therapeutics * 700 8
.........................................................................
Coulter Pharmaceutical * 1,400 40
.........................................................................
Eli Lilly 4,200 377
.........................................................................
Gehe (DEM) 2,000 128
.........................................................................
Gilead Sciences * 500 16
.........................................................................
Glaxo Wellcome ADR 5,600 356
.........................................................................
7
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Johnson & Johnson 4,700 $ 382
.........................................................................
Merck 5,100 790
.........................................................................
Millennium Pharmaceuticals * 2,500 51
.........................................................................
Neurocrine Biosciences * 1,400 10
.........................................................................
Novartis (CHF) 220 413
.........................................................................
PathoGenesis * 400 19
.........................................................................
Pfizer 9,420 1,051
.........................................................................
Pharmacia & Upjohn 7,760 404
.........................................................................
PharmaPrint * 3,000 36
.........................................................................
Schering-Plough 4,700 500
.........................................................................
Takeda Chemical Industries (JPY) 11,000 370
.........................................................................
Warner-Lambert 10,700 808
.........................................................................
8,719
...............
Biotechnology 0.0%
Cell Genesys * 3,800 19
.........................................................................
Zonagen * 1,000 19
.........................................................................
38
...............
Health Care Services 0.5%
Altana AG (DEM) 1,200 84
.........................................................................
AmeriPath * 5,200 24
.........................................................................
Concentra Managed Care * 5,000 58
.........................................................................
Inhale Therapeutic Systems * 1,500 48
.........................................................................
Monarch Dental * 1,900 21
.........................................................................
Northfield Laboratories * 2,000 27
.........................................................................
Orthodontic Centers of America * 2,500 48
.........................................................................
ProMedCo * 3,600 19
.........................................................................
SteriGenics International * 3,500 90
.........................................................................
United HealthCare 9,200 415
.........................................................................
834
...............
Miscellaneous Consumer Products 4.0%
Benetton Group (ITL) 65,000 119
.........................................................................
Bridgestone (JPY) 12,000 281
.........................................................................
Colgate-Palmolive 10,300 882
.........................................................................
Cone Mills * 6,400 29
.........................................................................
CSS Industries * 1,000 30
.........................................................................
Culp 1,500 13
.........................................................................
Dan River * 5,200 42
.........................................................................
Equity Corp. International * 2,900 75
.........................................................................
8
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Hasbro 10,200 $ 358
.........................................................................
Huhtamaki (FIM) 1,700 63
.........................................................................
Kuraray (JPY) 26,000 271
.........................................................................
Lion Nathan (NZD) 71,500 182
.........................................................................
Newell 4,400 195
.........................................................................
Philip Morris 30,950 1,731
.........................................................................
Philips Electronics ADR 3,800 241
.........................................................................
Procter & Gamble 2,500 219
.........................................................................
Service Corp. International 5,100 191
.........................................................................
Sola * 4,100 65
.........................................................................
Tomkins ADR 8,700 158
.........................................................................
Unifi 18,100 348
.........................................................................
Unilever N.V. ADR 4,300 332
.........................................................................
US Can * 2,700 47
.........................................................................
UST 17,700 615
.........................................................................
WestPoint Stevens * 1,500 45
.........................................................................
Yue Yuen Industrial (HKD) 42,000 82
.........................................................................
6,614
...............
Total Consumer Nondurables 25,760
...............
CONSUMER SERVICES 8.4%
Restaurants 0.0%
Logan's Roadhouse * 2,300 48
.........................................................................
PJ America * 1,200 24
.........................................................................
72
...............
General Merchandisers 2.1%
Bon-Ton Stores * 7,500 58
.........................................................................
Carrefour (FRF) 300 212
.........................................................................
Casey's General Stores 7,800 108
.........................................................................
Columbia Sportswear * 2,500 56
.........................................................................
Costco Companies * 500 31
.........................................................................
Dayton Hudson 7,600 342
.........................................................................
Fred Meyer * 9,500 483
.........................................................................
JUSCO (JPY) 11,000 209
.........................................................................
Marui (JPY) 10,000 178
.........................................................................
Pinault Printemps Redoute (FRF) 1,750 298
.........................................................................
Saks * 10,800 297
.........................................................................
9
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Tesco (GBP) 105,480 $ 312
.........................................................................
Wal-Mart 7,700 580
.........................................................................
Warnaco Group (Class A) 10,300 255
.........................................................................
3,419
...............
Specialty Merchandisers 2.7%
American Stores 24,000 805
.........................................................................
Christian Dior (FRF) 1,300 141
.........................................................................
CompuCom Systems * 8,400 32
.........................................................................
CVS 11,812 583
.........................................................................
General Nutrition * 4,200 75
.........................................................................
Home Depot 8,900 443
.........................................................................
Kroger * 3,000 159
.........................................................................
Omron (JPY) 7,000 83
.........................................................................
Performance Food Group * 2,700 66
.........................................................................
Rite Aid 8,000 371
.........................................................................
Safeway * 15,200 803
.........................................................................
St. John Knits 2,100 42
.........................................................................
Toys "R" Us * 20,400 403
.........................................................................
Tupperware 25,700 448
.........................................................................
Urban Outfitters * 2,100 30
.........................................................................
4,484
...............
Entertainment and Leisure 1.3%
Carnival (Class A) 8,000 276
.........................................................................
Disney 5,800 187
.........................................................................
Hutchison Whampoa (HKD) 52,000 369
.........................................................................
McDonald's 4,900 343
.........................................................................
MediaOne Group * 5,900 239
.........................................................................
Reader's Digest (Class A) 26,600 640
.........................................................................
Seattle Filmworks * 2,400 8
.........................................................................
Sharp (JPY) 13,000 115
.........................................................................
2,177
...............
Media and Communications 2.3%
American Tower (Class A) * 600 14
.........................................................................
Asatsu (JPY) 6,000 127
.........................................................................
CBS 14,400 429
.........................................................................
Chancellor Media * 2,700 102
.........................................................................
Elsevier (NLG) 8,000 105
.........................................................................
Emmis Broadcasting (Class A) * 900 31
.........................................................................
10
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Fox Entertainment Group 11,400 $ 269
.........................................................................
France Telecom ADR 6,500 444
.........................................................................
Jacor Communications * 2,500 146
.........................................................................
Pegasus Communications * 1,000 17
.........................................................................
R.R. Donnelley 10,400 441
.........................................................................
Sinclair Broadcast Group (Class A) * 2,200 27
.........................................................................
Time Warner 6,600 698
.........................................................................
Tribune 6,400 410
.........................................................................
Valassis Communications * 2,500 107
.........................................................................
Vanguard Cellular (Class A) * 1,100 25
.........................................................................
Vodafone ADR 2,400 355
.........................................................................
Young Broadcasting (Class A) * 2,100 75
.........................................................................
3,822
...............
Total Consumer Services 13,974
...............
CONSUMER CYCLICALS 4.0%
Automobiles and Related 0.5%
A.O. Smith (Class B) 6,750 168
.........................................................................
Cycle & Carriage (SGD) 6,000 21
.........................................................................
Federal-Mogul 4,000 227
.........................................................................
Honda ADR 4,000 290
.........................................................................
Keystone Automotive * 700 14
.........................................................................
Littelfuse * 1,900 44
.........................................................................
SPX * 1,400 81
.........................................................................
845
...............
Building and Real Estate 2.4%
Apartment Investment & Management, REIT 1,400 48
.........................................................................
Arden Realty, REIT 3,400 78
.........................................................................
Cheung Kong Holdings (HKD) 48,000 346
.........................................................................
City Developments (SGD) 5,000 24
.........................................................................
Crescent Real Estate Equities, REIT 10,100 251
.........................................................................
DBS Land (SGD) 15,000 21
.........................................................................
EastGroup Properties, REIT 5,300 98
.........................................................................
Federal Realty Investment Trust, REIT 21,300 510
.........................................................................
First Washington Realty Trust, REIT 2,900 67
.........................................................................
Glenborough Realty Trust, REIT 1,400 30
.........................................................................
JP Realty, REIT 1,300 29
.........................................................................
11
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Parkway Properties, REIT 3,900 $ 118
.........................................................................
Reckson Associates Realty, REIT 20,000 461
.........................................................................
Simon Property Group, REIT 21,640 641
.........................................................................
Starwood Hotels & Resorts, REIT 34,300 1,042
.........................................................................
Tower Realty Trust, REIT 4,000 75
.........................................................................
Woodhead Industries 6,000 78
.........................................................................
3,917
...............
Miscellaneous Consumer Durables 1.1%
CompX * 2,800 70
.........................................................................
Corning 20,800 835
.........................................................................
Eastman Kodak 700 51
.........................................................................
Harman International 1,000 43
.........................................................................
Masco 12,800 370
.........................................................................
OCE (NLG) 2,000 70
.........................................................................
Ricoh (JPY) 17,000 163
.........................................................................
Sony (JPY) 3,000 219
.........................................................................
1,821
...............
Total Consumer Cyclicals 6,583
...............
TECHNOLOGY 5.2%
Electronic Components 1.7%
American Superconductor * 1,000 10
.........................................................................
Analogic 3,300 118
.........................................................................
Burr Brown * 2,000 47
.........................................................................
EMC * 5,800 421
.........................................................................
Exar * 1,100 19
.........................................................................
Intel 5,600 603
.........................................................................
Linear Technology 2,100 147
.........................................................................
Maxim Integrated Products * 7,700 302
.........................................................................
Methode Electronics (Class A) 3,900 52
.........................................................................
Optek Technology * 3,300 59
.........................................................................
Planar Systems * 3,400 28
.........................................................................
PMC-Sierra * 600 32
.........................................................................
Texas Instruments 2,100 160
.........................................................................
Trident International * 3,700 37
.........................................................................
UBS (CHF) 2,214 666
.........................................................................
Xilinx * 2,400 122
.........................................................................
2,823
...............
12
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Electronic Systems 0.6%
Applied Micro Circuits * 1,600 $ 54
.........................................................................
Electromagnetic Sciences * 3,900 53
.........................................................................
Hewlett-Packard 5,100 320
.........................................................................
Lifeline Systems * 2,200 57
.........................................................................
Lo-Jack * 4,000 37
.........................................................................
Nokia ADR 5,900 578
.........................................................................
1,099
...............
Information Processing 0.5%
COMPAQ Computer 4,200 136
.........................................................................
Dell Computer * 3,500 213
.........................................................................
Hitachi ADR 2,800 165
.........................................................................
IBM 1,600 264
.........................................................................
778
...............
Office Automation 0.1%
Ceridian * 2,200 143
.........................................................................
143
...............
Specialized Computer 0.1%
Sun Microsystems * 2,700 200
.........................................................................
200
...............
Aerospace and Defense 0.7%
AlliedSignal 18,100 797
.........................................................................
Raytheon (Class B) 4,900 271
.........................................................................
Woodward Governor 1,600 40
.........................................................................
1,108
...............
Telecommunications 1.5%
AirTouch Communications * 5,400 309
.........................................................................
Cisco Systems * 6,450 486
.........................................................................
LM Ericsson (Class B) ADR 12,900 356
.........................................................................
Lucent Technologies 500 43
.........................................................................
MCI WorldCom * 20,085 1,185
.........................................................................
Premisys Communications * 1,200 18
.........................................................................
Tellabs * 1,800 97
.........................................................................
West TeleServices * 1,600 18
.........................................................................
2,512
...............
Total Technology 8,663
...............
13
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
EDUCATION 0.0%
ITT Educational Service * 2,100 $ 69
.........................................................................
Total Education 69
...............
CAPITAL EQUIPMENT 3.1%
Electrical Equipment 2.0%
ABB (CHF) 100 124
.........................................................................
Canon (JPY) 9,000 199
.........................................................................
GE 15,800 1,430
.........................................................................
Holophane * 3,800 87
.........................................................................
Matsushita Electric Works (JPY) 6,000 57
.........................................................................
Mitsubishi Electric (JPY) 13,000 33
.........................................................................
Siemens (DEM) 2,500 174
.........................................................................
Tyco International 18,749 1,234
.........................................................................
3,338
...............
Capital Equipment 0.1%
Omniquip International 3,800 52
.........................................................................
52
...............
Machinery 1.0%
Danaher 16,700 762
.........................................................................
GKN (GBP) 11,000 121
.........................................................................
JLG Industries 4,900 81
.........................................................................
Man (DEM) 740 210
.........................................................................
NN Ball & Roller 3,000 19
.........................................................................
S I G Schweis (CHF) 320 206
.........................................................................
Teleflex 5,600 238
.........................................................................
Toolex Alpha * 2,700 30
.........................................................................
Valmet (FIM) 2,000 26
.........................................................................
1,693
...............
Total Capital Equipment 5,083
...............
BUSINESS SERVICES AND
TRANSPORTATION 8.0%
Computer Service and Software 3.2%
Adobe Systems 1,700 76
.........................................................................
America Online 4,000 350
.........................................................................
Analysts International 1,400 23
.........................................................................
14
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Ascend Communications * 2,000 $ 112
.........................................................................
Automatic Data Processing 6,000 462
.........................................................................
BISYS Group * 1,000 49
.........................................................................
BMC Software * 10,000 510
.........................................................................
Computer Associates 1,400 62
.........................................................................
Electronic Arts * 400 17
.........................................................................
First Data 11,270 301
.........................................................................
Galileo International 7,100 284
.........................................................................
Great Plains Software * 1,200 47
.........................................................................
HBO 13,800 344
.........................................................................
HCIA * 3,300 16
.........................................................................
Microsoft * 7,800 952
.........................................................................
Network Associates * 9,100 463
.........................................................................
Oracle * 7,100 243
.........................................................................
Parametric Technology * 19,800 337
.........................................................................
Peerless Systems * 3,100 25
.........................................................................
Phoenix Technologies * 1,100 8
.........................................................................
PSINet * 700 13
.........................................................................
Saville Systems ADR * 5,200 102
.........................................................................
Sterling Commerce * 5,200 189
.........................................................................
Summit Design * 2,600 22
.........................................................................
SunGard Data Systems * 5,300 170
.........................................................................
Synopsys * 200 9
.........................................................................
Vantive * 1,000 9
.........................................................................
Visio * 2,000 71
.........................................................................
5,266
...............
Distribution Services 0.4%
Cardinal Health 1,792 123
.........................................................................
MSC * 2,500 60
.........................................................................
Primesource 1,900 13
.........................................................................
Richfood Holdings 4,400 82
.........................................................................
SED International Holdings * 4,200 20
.........................................................................
SunSource 1,700 35
.........................................................................
U.S. Foodservice * 7,285 335
.........................................................................
Watsco (Class A) 5,100 91
.........................................................................
759
...............
15
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Environmental 0.1%
CUNO * 2,800 $ 41
.........................................................................
Rentokil Group (GBP) 12,900 85
.........................................................................
Waterlink * 5,100 19
.........................................................................
145
...............
Transportation Services 0.3%
C.H. Robinson Worldwide 1,800 40
.........................................................................
Coach USA * 4,200 119
.........................................................................
Comfort Systems USA * 6,000 112
.........................................................................
Eagle USA Air Freight * 3,000 57
.........................................................................
Expeditors International of Washington 1,300 50
.........................................................................
Frozen Food Express 2,000 16
.........................................................................
Heartland Express * 900 15
.........................................................................
Hub Group (Class A) * 100 2
.........................................................................
International Shipholding 1,400 22
.........................................................................
Mitsubishi Heavy Industries (JPY) 12,000 45
.........................................................................
478
...............
Miscellaneous Business Services 2.9%
Alternative Resources * 3,700 35
.........................................................................
Billing Information Concepts * 3,900 49
.........................................................................
British Airport Authorities (GBP) 18,399 204
.........................................................................
Browning-Ferris 20,000 590
.........................................................................
Cendant * 9,650 183
.........................................................................
CORT Business Services * 2,200 50
.........................................................................
Electro Rent * 4,600 53
.........................................................................
Equifax 4,600 191
.........................................................................
H&R Block 21,700 975
.........................................................................
Insituform Technologies (Class A) * 4,700 61
.........................................................................
Iron Mountain * 1,500 44
.........................................................................
McGrath RentCorp 2,800 57
.........................................................................
Metamor Worldwide * 2,100 50
.........................................................................
MPW Industrial Services Group * 1,700 20
.........................................................................
New England Business Service 5,100 163
.........................................................................
Omnicom 7,100 379
.........................................................................
Paging Network * 1,900 12
.........................................................................
Paxar * 2,800 29
.........................................................................
Renaissance Worldwide * 3,900 28
.........................................................................
Romac International * 3,800 53
.........................................................................
16
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Shorewood Packaging * 7,100 $ 105
.........................................................................
Strayer Education 2,900 108
.........................................................................
Superior Services * 700 13
.........................................................................
Tetra Tech * 4,750 99
.........................................................................
The Peterson Companies (Class A) * 1,800 43
.........................................................................
The Vincam Group * 600 9
.........................................................................
Unitog 1,900 41
.........................................................................
Waste Management 26,443 1,134
.........................................................................
4,778
...............
Airlines 0.5%
Delta 14,400 773
.........................................................................
KLM (NLG) 3,900 106
.........................................................................
Midwest Express Holdings * 500 14
.........................................................................
Singapore Airlines (SGD) 3,000 21
.........................................................................
914
...............
Railroads 0.6%
Burlington Northern Santa Fe 5,500 187
.........................................................................
Norfolk Southern 25,700 781
.........................................................................
968
...............
Total Business Services and Transportation 13,308
...............
ENERGY 5.3%
Energy Services 0.7%
Baker Hughes 15,000 275
.........................................................................
Carbo Ceramics 300 6
.........................................................................
Cooper Cameron * 500 12
.........................................................................
Elf Aquitaine ADR 2,500 156
.........................................................................
Halliburton 6,500 191
.........................................................................
Johnson Electric (HKD) 84,000 188
.........................................................................
Schlumberger 1,800 80
.........................................................................
Smith International * 400 10
.........................................................................
TOTAL ADR 4,100 250
.........................................................................
Weatherford International * 700 13
.........................................................................
1,181
...............
Exploration and Production 0.1%
Rutherford-Moran Oil * 1,600 4
.........................................................................
Santos (AUD) 18,000 52
.........................................................................
56
...............
17
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Integrated Petroleum - Domestic 1.5%
Atlantic Richfield 6,200 $ 412
.........................................................................
British Petroleum ADR 13,180 1,214
.........................................................................
Occidental Petroleum 15,500 314
.........................................................................
Unocal 5,500 187
.........................................................................
USX-Marathon 14,200 403
.........................................................................
2,530
...............
Integrated Petroleum - International 3.0%
Amoco 20,000 1,179
.........................................................................
Chevron 2,700 226
.........................................................................
ENI S.P.A. ADR 4,600 281
.........................................................................
Exxon 6,360 477
.........................................................................
Mobil 17,700 1,526
.........................................................................
Repsol ADR 4,400 247
.........................................................................
Royal Dutch Petroleum ADR 6,900 324
.........................................................................
Shell Transport & Trading ADR 5,600 203
.........................................................................
Texaco 9,800 564
.........................................................................
5,027
...............
Total Energy 8,794
...............
PROCESS INDUSTRIES 4.4%
Diversified Chemicals 1.0%
Dow Chemical 8,000 779
.........................................................................
DuPont 7,100 417
.........................................................................
Hercules 12,000 395
.........................................................................
1,591
...............
Specialty Chemicals 2.0%
3M 4,100 329
.........................................................................
A. Schulman 11,300 242
.........................................................................
Akzo Nobel (NLG) 4,900 201
.........................................................................
Akzo Nobel ADR 800 33
.........................................................................
BASF AG (DEM) 7,350 278
.........................................................................
Bayer (DEM) 7,000 287
.........................................................................
CFC International * 1,300 10
.........................................................................
Furon 600 10
.........................................................................
Great Lakes Chemical 19,940 796
.........................................................................
Hauser * 3,400 16
.........................................................................
18
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Octel * 3,910 $ 57
.........................................................................
Pall 31,100 723
.........................................................................
Sumitomo Chemicals (JPY) 11,000 38
.........................................................................
Technip (FRF) 2,925 248
.........................................................................
3,268
...............
Paper and Paper Products 1.0%
Dai Nippon Printing (JPY) 12,000 174
.........................................................................
Fort James 13,100 512
.........................................................................
Kimberly-Clark 18,900 995
.........................................................................
Smurfit Container * 1,700 24
.........................................................................
1,705
...............
Forest Products 0.2%
Georgia-Pacific 5,000 284
.........................................................................
International Paper 3,100 134
.........................................................................
418
...............
Building and Construction 0.2%
Blue Circle Industries (GBP) 24,286 123
.........................................................................
Holderbank Financiere Glarus (CHF) 160 185
.........................................................................
Layne Christensen * 3,600 38
.........................................................................
Simpson Manufacturing * 600 22
.........................................................................
368
...............
Total Process Industries 7,350
BASIC MATERIALS 0.8%
Metals 0.7%
Anglo American Platinum (ZAR) 9,000 146
.........................................................................
AngloGold ADR 895 20
.........................................................................
Cambior 7,600 39
.........................................................................
Gibraltar Steel * 1,000 20
.........................................................................
Inco 20,000 231
.........................................................................
Matthews International (Class A) 4,500 133
.........................................................................
Reynolds Metals 10,200 560
.........................................................................
1,149
...............
Mining 0.1%
Lonrho Africa (GBP) 4,725 5
.........................................................................
Prime Resources Group 2,200 17
.........................................................................
Rio Tinto (AUD) 9,700 125
.........................................................................
TVX Gold * 6,600 12
.........................................................................
159
...............
19
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Miscellaneous Materials 0.0%
Malayan Cement (MYR) 20,250 $ 7
.........................................................................
Synthetic Industries * 1,100 18
.........................................................................
25
...............
Total Basic Materials 1,333
...............
MISCELLANEOUS 0.1%
Western Water * 800 4
.........................................................................
Conglomerates 0.1%
Orkla (Class A) (NOK) 7,600 127
.........................................................................
127
...............
Total Miscellaneous 131
...............
FOREIGN 0.3%
Europe 0.2%
AXA Colonia Konzern (DEM) 1,000 117
.........................................................................
Svenska Cellulosa (SEK) 7,100 156
.........................................................................
273
...............
Other Foreign 0.1%
Bobst (CHF) 144 196
.........................................................................
196
...............
Total Foreign 469
...............
Total Common Stocks (Cost $102,810) 123,192
...............
Corporate Bonds 12.9%
AEI Holding, Sr. Notes, (144a), 10.00%,
11/15/07 $ 100,000 103
.........................................................................
Agricultural Minerals, Sr. Notes, 10.75%,
9/30/03 50,000 50
.........................................................................
American Builders & Contractors Supply,
Sr. Sub. Notes 10.625%, 5/15/07 50,000 48
.........................................................................
American Radio Systems, Sr. Sub. Notes,
9.00%, 2/1/06 25,000 27
.........................................................................
American Safety Razor, Sr. Notes, 9.875%,
8/1/05 50,000 50
.........................................................................
American Standard, 9.25%, 12/1/16 35,000 36
.........................................................................
Amerigas Partners, Sr. Notes, 10.125%, 4/15/07 50,000 51
.........................................................................
APCOA, Sr. Sub. Notes, 9.25%, 3/15/08 100,000 93
.........................................................................
Archibald Candy, Sr. Secured Notes, 10.25%,
7/1/04 50,000 51
.........................................................................
20
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Associated Materials, Sr. Sub. Notes, 9.25%,
3/1/08 $ 100,000 $ 100
.........................................................................
Aurora Foods, Sr. Sub. Notes, 9.875%, 2/15/07 50,000 54
.........................................................................
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 100,000 99
.........................................................................
Ballys Health & Tennis, Sr. Sub. Notes, 9.875%,
10/15/07 75,000 74
.........................................................................
Banque Parabas New York, 6.875%, 3/1/09 1,550,000 1,532
.........................................................................
Bway, Sr. Sub. Notes, 10.25%, 4/15/07 100,000 106
.........................................................................
Chancellor Media, Sr. Sub. Notes, (144a)
8.125%, 12/15/07 100,000 99
.........................................................................
Chattem, Sr. Sub. Notes, 12.75%, 6/15/04 100,000 110
.........................................................................
Coach USA, Gtd. Sr. Sub. Notes, 9.375%, 7/1/07 75,000 78
.........................................................................
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 50,000 55
.........................................................................
Comcast Cable Communications, 8.50%, 5/1/27 1,550,000 1,907
.........................................................................
Communications & Power Industries, Sr. Sub.
Notes 12.00%, 8/1/05 100,000 106
.........................................................................
Container Corporation of America, Gtd., 10.75%,
5/1/02 25,000 26
.........................................................................
Courtyard by Marriott II, Sr. Secured Notes
10.75%, 2/1/08 100,000 104
.........................................................................
CSC Holdings, Sr. Notes, 7.875%, 12/15/07 100,000 105
.........................................................................
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 50,000 51
.........................................................................
Delta Mills, Sr. Notes, 9.625%, 9/1/07 50,000 50
.........................................................................
Doane Products, Sr. Sub. Notes, 9.75%, 5/15/07 87,000 89
.........................................................................
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 50,000 46
.........................................................................
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 50,000 50
.........................................................................
Energy Corporation of America, Sr. Sub. Notes
9.50%, 5/15/07 100,000 96
.........................................................................
Eye Care Centers of America, 9.125%, 5/1/08 100,000 96
.........................................................................
Fairchild Semiconductor, Sr. Sub. Notes
10.125%, 3/15/07 25,000 25
.........................................................................
Fairfax Financial Holdings, 8.25%, 10/1/15 1,550,000 1,553
.........................................................................
Federal-Mogul, Sr. Notes, 7.75%, 7/1/06 100,000 100
.........................................................................
First Federal Financial, 11.75%, 10/1/04 50,000 52
.........................................................................
Flag Limited, Sr. Notes, (144a), 8.25%, 1/30/08 50,000 51
.........................................................................
Frontiervision, Sr. Notes, 11.00%, 10/15/06 50,000 56
.........................................................................
Furon, Sr. Sub. Notes, (144a), 8.125%, 3/1/08 100,000 99
.........................................................................
Genesis Health Ventures, Sr. Sub. Notes,
9.25%, 10/1/06 50,000 49
.........................................................................
Grand Casinos, 1st Mtg. Notes, 10.125%, 12/1/03 50,000 55
.........................................................................
Harcourt General, Deb., 7.20%, 8/1/27 2,000,000 1,901
.........................................................................
HMH Properties, Sr. Notes, 7.875%, 8/1/08 100,000 98
.........................................................................
21
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Holmes Products, Gtd. Notes, 9.875%, 11/15/07 $ 100,000 $ 96
...............................................................................
Host Marriott Travel, Sr. Notes, 9.50%, 5/15/05 50,000 52
...............................................................................
Intermedia Communications, Sr. Notes, 8.50%, 1/15/08 100,000 99
...............................................................................
International Wire, Sr. Sub. Notes, 11.75%, 6/1/05 100,000 104
...............................................................................
Intertek Finance, Sr. Sub. Notes, 10.25%, 11/1/06 50,000 50
...............................................................................
Iron Mountain, Sr. Sub. Notes, 8.75%, 9/30/09 50,000 51
...............................................................................
ISP Holdings, Sr. Notes, 9.75%, 2/15/02 50,000 53
...............................................................................
Jitney-Jungle Stores, Sr. Sub. Notes, 12.00%, 3/1/06 100,000 112
...............................................................................
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 50,000 56
...............................................................................
Lockheed Martin, Gtd. Notes, 6.55%, 5/15/99 200,000 201
...............................................................................
Marcus Cable, Sr. Disc. Notes, STEP, 0%, 8/1/04 50,000 50
...............................................................................
Mastec, Sr. Sub. Notes, (144a), 7.75%, 2/1/08 75,000 72
...............................................................................
Mediacom Capital, Sr. Notes, (144a), 8.50%, 4/15/08 75,000 77
...............................................................................
Mrs. Fields, Gtd. Sr. Notes, (144a), 10.125%, 12/1/04 50,000 46
...............................................................................
Nextel Communications, Sr. Disc. Notes
STEP, 0%, 10/31/07 150,000 95
...............................................................................
Niagara Mohawk
Sr. Disc. Notes, STEP, 0%, 7/1/10 100,000 76
........................................................................
Sr. Notes, 7.75%, 10/1/08 25,000 27
...............................................................................
Northland Cable Television, Sr. Sub. Notes
10.25%, 11/15/07 50,000 53
...............................................................................
Ocwen Financial, Sr. Notes, 11.875%, 10/1/03 25,000 22
...............................................................................
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 50,000 54
...............................................................................
Owens Illinois, Sr. Notes, 7.35%, 5/15/08 1,550,000 1,531
...............................................................................
Paine Webber, Sr. Notes, 6.55%, 4/15/08 1,550,000 1,552
...............................................................................
Paragon Corporate Holdings, Sr. Notes, (144a)
9.625%, 4/1/08 50,000 42
...............................................................................
Plastic Containers, Sr. Secured Notes, 10.00%, 12/15/06 50,000 52
...............................................................................
Price Communications Wireless, Sr. Notes, (144a)
9.125%, 12/15/06 100,000 104
...............................................................................
Pride Petroleum Services, Sr. Notes, 9.375%, 5/1/07 50,000 50
...............................................................................
Principal Mutual, (144a), 8.00%, 3/1/44 1,550,000 1,585
...............................................................................
Purina Mills, Sr. Sub. Notes, (144a), 9.00%, 3/15/10 100,000 103
...............................................................................
Quest Diagnostics, Gtd. Sr. Sub. Notes, 10.75%, 12/15/06 50,000 55
...............................................................................
Qwest Communications
Sr. Disc. Notes, Zero Coupon, 10/15/07 100,000 78
........................................................................
Sr. Notes, (144a), 7.50%, 11/1/08 25,000 25
...............................................................................
R & B Falcon, Sr. Notes, (144a), 6.95%, 4/15/08 1,550,000 1,455
...............................................................................
22
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Revlon Consumer Products, Sr. Sub. Notes
8.625%, 2/1/08 $ 100,000 $ 99
...............................................................................
Rio Hotel & Casino, Gtd. Sr. Sub. Notes, 9.50%,
4/15/07 50,000 55
...............................................................................
Rogers Cablesystems, Sr. Sec. 2nd Priority Notes
10.00%, 3/15/05 50,000 56
...............................................................................
Rouse, 8.50%, 1/15/03 15,000 16
...............................................................................
Rural/Metro, Sr. Notes, 7.875%, 3/15/08 50,000 47
...............................................................................
Safelite Glass, Sr. Sub. Notes, (144a), 9.875%, 12/15/06 25,000 25
...............................................................................
Scotland International Finance, Sub. Notes, (144a)
6.50%, 2/15/11 100,000 98
...............................................................................
Silgan Holdings, Sr. Sub. Deb., 9.00%, 6/1/09 40,000 41
...............................................................................
Six Flags Entertainment, Sr. Notes, 8.875%, 4/1/06 100,000 104
...............................................................................
Six Flags Theme Parks, Sr. Sub. Disc. Notes
12.25%, 6/15/05 100,000 111
...............................................................................
Smithfield Foods, Sr. Sub. Notes, (144a) 7.625%, 2/15/08 50,000 50
...............................................................................
Southern Foods, Sr. Sub. Notes, (144a) 9.875%, 9/1/07 50,000 52
...............................................................................
Sovereign Speciality Chemicals, Sr. Sub. Notes, (144a)
9.50%, 8/1/07 50,000 50
...............................................................................
Specialty Retailers, Sr. Notes, 8.50%, 7/15/05 50,000 46
...............................................................................
Sprint Spectrum, 6.125%, 11/15/08 750,000 763
...............................................................................
Stena, Sr. Notes, 10.50%, 12/15/05 100,000 104
...............................................................................
Synthetic Industries, Sr. Sub. Notes, 9.25%, 2/15/07 50,000 51
...............................................................................
Tenet Healthcare, Sr. Sub. Notes, 8.625%, 1/15/07 50,000 53
...............................................................................
Texas-New Mexico Power, Deb., 12.50%, 1/15/99 50,000 50
...............................................................................
US Can, Sr. Gtd. Notes, 10.125%, 10/15/06 50,000 52
...............................................................................
Westpoint Stevens, Sr. Notes, 7.875%, 6/15/08 100,000 103
...............................................................................
WorldCom, 7.75%, 4/1/07 1,550,000 1,747
...............................................................................
Total Corporate Bonds (Cost $21,988) 21,432
...........
Foreign Government Obligations/
Agencies 0.8%
European Investment Bank
3.00%, 9/20/06 JPY 34,000,000 316
........................................................................
4.625%, 2/26/03 JPY 10,000,000 95
...............................................................................
Federal Republic of Germany
6.00%, 7/4/07 DEM 280,000 189
........................................................................
6.50%, 7/15/03 DEM 30,000 20
........................................................................
23
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
8.375%, 5/21/01 DEM 80,000 $ 52
.........................................................................
8.50%, 8/21/00 DEM 23,000 15
................................................................................
Government of Canada
6.50%, 6/1/04 CAD 3,000 2
.........................................................................
8.50%, 4/1/02 CAD 111,000 81
.........................................................................
9.75%, 6/1/21 CAD 5,000 5
................................................................................
Government of France
5.50%, 4/25/07 FRF 972,000 190
.........................................................................
8.25%, 2/27/04 FRF 142,000 30
.........................................................................
8.50%, 11/25/02 FRF 264,000 55
................................................................................
Government of Japan ++
4.50%, 6/20/03 JPY 8,400,000 79
................................................................................
Int'l Bank for Reconstruction & Development
6.75%, 3/15/00 JPY 1,000,000 9
................................................................................
Kingdom of Belgium
7.25%, 4/29/04 BEF 300,000 10
................................................................................
Kingdom of Spain
8.00%, 5/30/04 ESP 1,500,000 13
................................................................................
Kingdom of Sweden
6.00%, 2/9/05 SEK 100,000 14
................................................................................
Republic of Italy
8.50%, 8/1/04 ITL 45,000,000 33
................................................................................
United Kingdom Treasury Notes
7.50%, 12/7/06 GBP 55,000 107
.........................................................................
8.00%, 6/10/03 GBP 17,000 31
.........................................................................
9.00%, 3/3/00 GBP 8,000 14
................................................................................
Total Foreign Government Obligations/Agencies (Cost $1,280) 1,360
..............
U.S. Government Mortgage-Backed
Securities 3.2%
Federal National Mortgage Assn.
6.50%, 1/1/26 $ 156,561 157
................................................................................
Government National Mortgage Assn.
I
6.00%, 12/15/23 - 5/15/26 647,183 642
.........................................................................
6.50%, 12/15/23 - 3/15/26 479,879 485
.........................................................................
24
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
7.00%, 8/15/23 - 12/15/25 $ 342,966 $ 351
.........................................................................
7.50%, 10/15/22 - 1/15/26 394,897 408
.........................................................................
8.00%, 1/15/22 - 10/20/25 275,742 287
................................................................................
Government National Mortgage Assn., II
7.00%, 4/15/26 - 11/20/28 2,879,042 2,944
................................................................................
Total U.S. Government Mortgage-Backed Securities
(Cost $5,150) 5,274
..............
U.S. Government Obligations/
Agencies 4.0%
Tennessee Valley Authority
5.88%, 4/1/36 2,095,000 2,179
.........................................................................
6.235%, 7/15/45 500,000 528
................................................................................
U.S. Treasury Bonds
6.75%, 8/15/26 3,330,000 4,014
................................................................................
Total U.S. Government Obligations/Agencies (Cost $6,128) 6,721
..............
Short-Term Investments 4.9%
Certificates of Deposit 0.0%
Chase Manhattan Bank, N.A., fixed deposit
5.50%, 12/9/98 (MYR) 92,514 21
................................................................................
21
..............
Money Market Funds 4.9%
Reserve Investment Fund, 5.34% # 8,077,329 8,077
................................................................................
8,077
..............
Total Short-Term Investments (Cost $8,098) 8,098
..............
25
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
In thousands
Total Investments in Securities
99.9% of Net Assets (Cost $145,454) $ 166,077
Other Assets Less Liabilities 135
..............
NET ASSETS $ 166,212
==============
# Seven-day yield
* Non-income producing
++ Securities contain some restrictions as to public resale - total of such
securities at period-end amounts to 0.05% of net assets
ADR American Depository Receipt
REIT Real Estate Investment Trust
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
2.5% 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 Growth Fund
- --------------------------------------------------------------------------------
Unaudited November 30, 1998
- ---------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value (cost $145,454) $ 166,077
Securities lending collateral 17,208
Other assets 1,236
..............
Total assets 184,521
..............
Liabilities
Obligation to return securities lending collateral 17,208
Other liabilities 1,101
..............
Total liabilities 18,309
..............
NET ASSETS $ 166,212
--------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 2,566
Accumulated net realized gain/loss - net of distributions 4,449
Net unrealized gain (loss) 20,625
Paid-in-capital applicable to 9,044,131 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the corporation authorized 138,572
..............
NET ASSETS $ 166,212
--------------
NET ASSET VALUE PER SHARE $ 18.38
--------------
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Unaudited
- ---------------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
6 Months
Ended
11/30/98
Investment Income
Income
Interest $ 1,343
Dividend 981
...............
Total income 2,324
...............
Expenses
Investment management 422
Shareholder servicing 280
Custody and accounting 73
Prospectus and shareholder reports 22
Registration 20
Legal and audit 6
Directors 3
Miscellaneous 11
...............
Total expenses 837
...............
Net investment income 1,487
...............
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 1,618
Foreign currency transactions (7)
...............
Net realized gain (loss) 1,611
...............
Change in net unrealized gain or loss
Securities (130)
Other assets and liabilities
denominated in foreign currencies 6
...............
Change in net unrealized gain or loss (124)
...............
Net realized and unrealized gain (loss) 1,487
...............
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 2,974
---------------
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
T. Rowe Price Personal Strategy Growth 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 $ 1,487 $ 2,155
Net realized gain (loss) 1,611 3,643
Change in net unrealized gain or loss (124) 12,554
...........................
Increase (decrease) in net assets from operations 2,974 18,352
...........................
Distributions to shareholders
Net investment income - (1,529)
Net realized gain - (1,117)
...........................
Decrease in net assets from distributions - (2,646)
...........................
Capital share transactions*
Shares sold 39,170 87,647
Distributions reinvested - 2,621
Shares redeemed (23,279) (26,179)
...........................
Increase (decrease) in net assets from capital
share transactions 15,891 64,089
...........................
Net Assets
Increase (decrease) during period 18,865 79,795
Beginning of period 147,347 67,552
...........................
End of period $ 166,212 $ 147,347
===========================
*Share information
Shares sold 2,204 5,091
Distributions reinvested - 160
Shares redeemed (1,323) (1,534)
...........................
Increase (decrease) in shares outstanding 881 3,717
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
T. Rowe Price Personal Strategy Growth 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
Growth 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.
30
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting
period. Purchases and sales of securities and income and expenses are
translated into U.S. dollars at the prevailing exchange rate on the dates
of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains and losses is reflected as a
component of such gains and losses.
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 all 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 repayments 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
31
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
borrower fails to return them. At November 30, 1998, the value of loaned
securities was $16,470,000; aggregate collateral consisted of $17,208,000
in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $44,098,000 and $24,519,000,
respectively, for the six months ended November 30, 1998. Purchases and
sales of U.S. government securities aggregated $5,665,000 and $12,475,000,
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
$145,454,000. Net unrealized gain aggregated $20,623,000, of which
$26,583,000 related to appreciated investments and $5,960,000 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 $80,000 was payable at November 30, 1998. The fee
is computed daily and paid monthly, and consists of an individual fund fee
equal to 0.30% 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 is
required to bear any expenses through May 31, 2000, which would cause the
fund's ratio of expenses to average net assets to exceed 1.10%.
Thereafter, through May 31, 2002, the fund is required to reimburse the
manager for these
32
<PAGE>
T. Rowe Price Personal Strategy Growth Fund
- --------------------------------------------------------------------------------
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 1.10%. Pursuant to this
agreement, $52,000 of management fees were not accrued by the fund for the
six months ended November 30, 1998. Pursuant to a previous agreement,
$287,000 of unaccrued management fees related to a previous expense
limitation are subject to reimbursement through May 31, 2000.
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 $275,000 for the six months ended
November 30, 1998, of which $43,000 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 $79,000 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. C11-057 11/30/98
