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Previous: PRICE T ROWE PERSONAL STRATEGY FUNDS INC, N-30D, 2000-07-13 |
Next: PRICE T ROWE PERSONAL STRATEGY FUNDS INC, N-30D, 2000-07-13 |
<PAGE>
--------------------------------------------------------------------------------
Annual Report - Financial Statements
--------------------------------------------------------------------------------
T. ROWE PRICE
PERSONAL STRATEGY
BALANCED FUND
------------
MAY 31, 2000
------------
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year
Ended
5/31/00 5/31/99 5/31/98 5/31/97 5/31/96
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 16.20 $ 15.88 $ 4.07 $ 12.68 $ 11.15
Investment activities
Net investment income (loss) 0.50 0.46 0.46* 0.42* 0.41*
Net realized and
unrealized gain (loss) 0.39 0.81 2.15 1.69 1.56
Total from
investment activities 0.89 1.27 2.61 2.11 1.97
Distributions
Net investment income (0.49) (0.46) (0.45) (0.40) (0.37)
Net realized gain (0.40) (0.49) (0.35) (0.32) (0.07)
Total distributions (0.89) (0.95) (0.80) (0.72) (0.44)
NET ASSET VALUE
End of period $ 16.20 $ 16.20 $ 15.88 $ 14.07 $ 12.68
---------------------------------------------------------------------------
Ratios/Supplemental Data
Total return+ 5.68% 8.37% 19.15%* 17.21%* 17.97%*
Ratio of total expenses to
average net assets 0.98% 1.00% 1.05%* 1.05%* 1.05%*
Ratio of net investment
income (loss) to average
net assets 3.05% 3.01% 3.09%* 3.20%* 3.44%*
Portfolio turnover rate 48.2% 34.3% 41.5% 54.0% 47.7%
Net assets, end of period
(in thousands) $ 611,856 $ 529,691 $ 328,356 $ 205,883 $ 116,826
</TABLE>
+ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* Excludes expenses in excess of a 1.05% voluntary expense limitation in
effect through 5/31/98.
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
May 31, 2000
------------------------
PORTFOLIO OF INVESTMENTS Shares/Par Value
--------------------------------------------------------------------------------
In thousands
COMMON STOCKS AND RIGHTS 58.2%
FINANCIAL 9.3%
Bank and Trust 4.2%
Abbey National (GBP) 55,300 $ 735
ABN Amro (EUR) 14,400 329
Allied Irish Banks (EUR)* 25,900 239
Australia & New Zealand Banking Group (AUD) 21,000 146
Australia & New Zealand Banking Group ADR 6,400 222
Banca Intesa (EUR) 115,300 455
Banca Popolare di Milano (EUR) 16,800 109
Banco Bradesco ADR 17,400 118
Banco de Bilbao Vizcaya Argentaria ADR 49,600 688
Banco Frances del Rio de la Plata ADR 10,204 198
Bank of America 46,400 2,578
Bank of New York 26,800 1,258
Bank One 41,700 1,379
Bankgesellschaft Berlin (EUR) * 14,100 221
Banque National de Paris (EUR) 4,400 397
Barclay's (GBP) 24,155 626
Charter One Financial 6,726 153
Chase Manhattan 14,100 1,053
Chittenden 20,900 579
Citizens Banking 13,000 237
Commonwealth Bank of Australia (AUD) 25,900 412
DBS Group Holdings (SGD) 28,028 280
Downey Financial 22,300 663
Dresdner Bank (EUR) 22,200 911
First Bell Bancorp 2,800 40
First Mariner Bancorp 1,500 10
First Security 3,500 54
Firstar 44,300 1,132
Frankfort First Bancorp 1,000 12
Fuji Bank (JPY) 52,000 402
Glacier Bancorp 13,289 170
HSBC Holdings (GBP) 75,345 831
Industrial Bank of Japan (JPY) 61,000 476
3
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
KBC Bancassurance Holding (EUR) 5,500 $ 236
Marshall & Ilsley 1,200 58
Mellon Financial 69,500 2,680
Overseas Chinese Bank (SGD) 36,750 207
Societe Generale (EUR) 2,308 133
Southwest Bancorporation * 22,300 443
State Street 11,200 1,249
Sumitomo Bank (JPY) 48,000 629
Summit Bancorp 6,200 178
Svenska Handelsbanken (Series A) (SEK) 24,400 345
Unicredito (EUR) 109,100 483
Washington Mutual 24,105 693
Wells Fargo 25,700 1,163
WestAmerica 10,000 286
------------
25,896
------------
Insurance 2.4%
ACE Limited 26,100 700
Aegon (EUR) 7,800 281
Allied Zurich (GBP) 61,800 696
American General 17,100 1,095
American International Group 5,293 596
AMP Limited (AUD) 17,500 152
Brown and Brown 10,300 480
Harleysville Group 3,400 58
Istituto Nazionale delle Assicurazioni (EUR) 85,300 190
London Pacific Group ADR 13,600 127
Marsh & McLennan 9,700 1,068
Medical Assurance * 16,390 186
PartnerRe Holdings 11,300 419
Schweizerische Rueckversicherungs (CHF) 268 516
Selective Insurance 3,300 61
St. Paul 50,800 1,905
Sumitomo Marine & Fire Insurance (JPY)* 122,000 765
UnumProvident 109,400 2,482
W. R. Berkley 6,900 152
XL Capital (Class A) 40,200 2,392
------------
14,321
------------
4
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Financial Services 2.7%
American Express * 42,800 $ 2,303
Amvescap (GBP) 26,300 345
Associates First Capital (Class A) 14,700 403
AXA (EUR) 3,400 501
Capital One Financial 19,600 926
Charles Schwab 6,450 186
Citigroup 53,298 3,315
Delta Financial * 9,900 17
Fannie Mae 54,300 3,265
Financial Federal * 9,600 170
Freddie Mac 49,900 2,221
Goldman Sachs Group 1,300 96
Grupo Financiero Banamex (MXN)* 57,600 188
ING Groep (EUR) 11,184 669
ITLA Capital * 4,000 52
Morgan Stanley Dean Witter 11,900 856
Nomura Securities (JPY) 14,000 321
Pearson (GBP) 15,900 475
Providian Financial 3,100 276
16,585
-----------
Total Financial 56,802
-----------
UTILITIES 3.6%
Telephone 2.4%
ALLTEL 1,400 92
AT&T 28,524 989
AT&T Liberty Media Group * 9,500 421
BellSouth 23,400 1,093
British Telecommunications ADR 4,300 627
Cable & Wireless ADR 11,614 258
Compania de Telecomunicaciones de Chile (Class A) ADR 11,650 230
GTE 2,800 177
KPN (EUR) 4,200 379
Nextel Communications * 8,300 769
Nippon Telegraph & Telephone (JPY) 96 1,141
Portugal Telecom (EUR) 9,200 100
5
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Rural Cellular (Class A) * 2,500 $ 169
SBC Communications 20,900 913
Sprint 33,700 2,039
Swisscom (CHF) 795 279
Tele Danmark A/S (DKK) 1,500 106
Telebras ADR 10,300 1,192
Telecom Corp. of New Zealand ADR 15,100 421
Telecom Italia (EUR) 45,475 628
Telecom Italia Mobile (EUR) 83,000 865
Telefonica de Espana ADR * 9,141 556
Telefonos de Mexico (Class L) ADR 18,500 901
Telekom Malaysia (MYR) 100 0
Western Wireless* 3,400 162
------------
14,507
------------
Electric Utilities 1.0%
Cleco 15,600 534
Electrabel (EUR) 563 129
Empresa Nacional de Electricidad Chile ADR* 14,757 174
Enersis ADS* 3,800 81
FirstEnergy 37,317 938
GPU 7,300 206
Hong Kong Electric (HKD) 71,000 238
Iberdrola (EUR) 41,000 524
National Grid (GBP) 19,400 148
PECO Energy 14,600 642
Powergen (GBP) 23,100 151
TXU 25,000 894
Unicom 27,600 1,151
Unisource Energy 4,500 69
Veba (EUR) 10,280 520
------------
6,399
------------
Water Utilities 0.2%
Suez Lyonnaise des Eaux (EUR) 5,000 840
United Water Resources 2,900 101
941
------------
Total Utilities 21,847
------------
6
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
CONSUMER NONDURABLES 10.3%
Cosmetics 0.6%
Chattem * 9,000 $ 107
International Flavors & Fragrances 82,300 2,798
Kao (JPY) 27,000 820
-----------
3,725
-----------
Beverages 0.7%
Anheuser-Busch 23,600 1,829
Coca-Cola 6,000 320
Compania Cervecerias Unidas ADR 5,800 129
Diageo ADR 9,275 321
Fomento Economico Mexica UBD (Represents 1 Class B
and 4 Series D shares) (MXN) 23,300 88
LVMH (EUR) 988 403
PepsiCo 26,400 1,074
-----------
4,164
-----------
Food Processing 1.4%
American Italian Pasta * 8,700 214
Associated British Foods (GBP) 58,800 397
Cadbury Schweppes (GBP) 27,200 181
Cadbury Schweppes ADR 6,200 167
Campbell 48,900 1,516
Carrefour (EUR) 14,100 998
Danisco (DKK) 1,000 36
Eridania Beghin-Say (EUR) 2,100 193
General Mills 50,720 2,013
International Multifoods 24,400 340
Nestle (CHF) 342 652
Quaker Oats 1,300 96
Ralston Purina 58,400 1,084
Sara Lee 21,700 390
Seneca Foods (Class A) * 5,100 59
Seneca Foods (Class B) * 100 1
Unilever 9,578 487
-----------
8,824
-----------
Hospital Supplies/Hospital Management 0.6%
Airgas * 14,600 79
Baxter International 12,200 811
Cephalon * 4,400 228
7
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Guidant * 100 $ 5
Lincare * 12,700 369
Medtronic 1,400 72
Mentor 19,300 464
Molecular Devices * 3,200 171
Quorum Health Group * 5,100 49
Renal Care Group * 12,400 296
Smith & Nephew (GBP) 108,500 292
Steris * 9,600 87
Terumo (JPY)* 27,000 862
-----------
3,785
-----------
Pharmaceuticals 3.9%
American Home Products 107,660 5,800
Amgen* 10,500 668
AstraZeneca Group ADR 16,400 690
AstraZeneca Group (GBP) 12,007 506
Aurora Biosciences * 3,300 156
Boron Lepore & Associates * 7,300 56
Bristol-Myers Squibb 9,300 512
Daiichi Pharmaceutical (JPY) 9,000 167
Eli Lilly 11,200 853
Genetech * 5,000 537
Glaxo Wellcome ADR 17,000 957
Imclone Systems * 1,000 71
Immunomedics * 1,600 20
Incyte Pharmaceuticals * 1,600 84
Johnson & Johnson 1,900 170
MedImmune * 3,100 482
Merck 10,200 761
Novartis (CHF) 1,233 1,819
Noven Pharmaceuticals * 2,600 49
NPS Pharmaceuticals * 5,700 72
Pfizer 55,760 2,485
Pharmacia 36,355 1,888
Schering-Plough 17,600 851
Takeda Chemical Industries (JPY) 22,000 1,501
Triangle Pharmaceuticals * 11,400 73
Warner-Lambert 23,400 2,858
-----------
24,086
-----------
8
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Biotechnology 0.2%
Abegenix * 800 $ 63
Alkermes * 5,800 212
Anesta * 4,800 71
COR Therapeutics * 2,500 158
Cubist Pharmaceuticals * 1,600 46
Gilead Sciences * 700 39
Inhale Therapeutic Systems * 7,400 539
Neurocrine Biosciences * 3,500 74
Serologicals * 8,200 33
Viropharma * 3,400 38
-----------
1,273
-----------
Health Care Services 0.5%
AmeriPath * 17,800 153
CIGNA 8,000 710
Orthodontic Centers of America * 7,700 177
Packard BioScience* 3,500 49
UnitedHealth Group 18,600 1,387
Wellpoint Health Networks * 8,900 646
-----------
3,122
-----------
Miscellaneous Consumer Products 2.4%
Bridgestone (JPY) 9,000 206
Colgate-Palmolive 42,300 2,226
Cone Mills * 17,600 101
Culp 6,000 38
Dan River * 22,300 112
Electrolux (Class B) (SEK) 8,100 137
Energizer Holdings* 19,466 331
Harcourt General 33,600 1,327
Kuraray (JPY) 11,000 114
Lion Nathan (NZD) 166,400 332
Mattel 102,200 1,386
Mitsui (JPY) 84,000 590
Philip Morris 88,250 2,306
Philips Electronics 18,608 822
Polymer Group 6,900 51
Quicksilver * 5,900 80
Reebok * 7,000 97
9
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Sola * 27,300 $ 137
Stride Rite 22,700 149
Textron 25,500 1,600
Tomkins (GBP) 99,100 285
Unifi * 11,200 143
US Can * 21,200 350
UST 71,000 1,180
WestPoint Stevens 5,600 57
Yue Yuen Industrial (HKD) 127,000 250
-----------
14,407
-----------
Total Consumer Nondurables 63,386
-----------
CONSUMER SERVICES 6.4%
General Merchandisers 0.7%
Bon-Ton Stores * 17,300 39
Casey's General Stores 35,200 416
Columbia Sportswear * 9,500 250
JUSCO (JPY) 26,000 446
Marui (JPY) 25,000 458
Target 9,300 583
Tesco (GBP) 211,946 641
Wal-Mart 25,700 1,481
-----------
4,314
-----------
Specialty Merchandisers 2.0%
Circuit City Stores 4,100 204
CompuCom Systems * 32,600 78
CVS 19,770 860
Home Depot 22,150 1,081
Kroger * 28,500 566
Lowes 11,200 521
Nordstrom 54,800 1,377
O' Charley's * 19,000 267
Omron (JPY)* 38,000 981
Priceline.com * 700 27
PurchasePro.com* 2,600 55
Safeway * 30,500 1,407
The Gap 100 4
Toys "R" Us * 161,700 2,547
10
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Tupperware 80,800 $ 1,783
Urban Outfitters * 10,200 92
Wild Oats Markets * 5,600 52
-----------
11,902
-----------
Entertainment and Leisure 1.7%
Disney 99,700 4,206
Houghton Mifflin 1,100 44
Hutchison Whampoa (HKD) 126,500 1,457
McDonald's 9,800 351
Papa John's * 9,300 233
Reader's Digest (Class A) 59,500 2,016
Sharp (JPY) 24,000 432
Sonic * 5,400 149
Viacom (Class B) * 27,667 1,715
-----------
10,603
-----------
Media and Communications 1.8%
American Tower Systems (Class A) * 2,100 78
Asatsu (JPY) 15,000 489
Classic Communications * 6,200 44
Clear Channel Communications * 13,573 1,016
Comcast (Class A Special) * 10,200 387
Elsevier (EUR) 10,300 97
Emmis Broadcasting (Class A) * 10,000 342
Granada Group (GBP) 14,400 128
Infinity Broadcasting (Class A) * 19,300 610
Mediaset (EUR) 20,300 314
News 7,800 355
Pegasus Communications * 4,400 183
Publishing & Broadcasting (AUD) 42,600 314
R.R. Donnelley 138,400 3,417
Sinclair Broadcast Group (Class A) * 17,000 140
Time Warner 9,300 734
Vodafone Airtouch ADR* 52,550 2,407
Young Broadcasting (Class A) * 6,600 152
-----------
11,207
-----------
Restaurants 0.1%
Applebee's 2,800 90
Buca * 16,000 224
11
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
PJ America * 7,200 $ 78
Ruby Tuesday 14,600 144
Uno Restaurant * 6,600 80
-----------
616
-----------
Printing and Publishing 0.1%
Reed International (GBP) 59,400 393
-----------
393
-----------
Total Consumer Services 39,035
-----------
EDUCATION 0.1%
Education 0.1%
ITT Educational Service * 6,700 111
Societe BIC (EUR) 8,000 355
Total Education 466
CONSUMER CYCLICALS 3.9%
Automobiles and Related 0.4%
A.O. Smith (Class B) 24,300 510
Cycle & Carriage (SGD) 22,000 44
DaimlerChrysler (EUR) 5,900 321
Fiat (EUR)* 6,500 165
Honda ADR 5,200 353
Keystone Automotive * 6,000 44
Littelfuse * 15,700 629
Strattec Security * 3,600 125
Volkswagen (EUR) 8,400 337
Volvo (Class B) (SEK) 3,400 81
Volvo, Rights (SEK) * 3,400 0
-----------
2,609
-----------
Building and Real Estate 1.9%
Apartment Investment & Management, REIT 3,900 156
Arden Realty, REIT 9,800 225
Cemex (Represents 2 Class A and
1 Class B shares) (MXN) 38,000 161
Cheung Kong Holdings (HKD) 84,000 768
City Developments (SGD) 15,000 50
DBS Land (SGD) 46,000 53
12
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
EastGroup Properties, REIT 16,400 $ 353
Federal Realty Investment Trust, REIT 85,000 1,865
First Washington Realty Trust, REIT 5,700 118
Glenborough Realty Trust, REIT 10,600 164
JP Realty, REIT 11,900 215
Parkway Properties, REIT 14,400 434
Reckson Associates Realty (Class B), REIT 6,334 145
Reckson Associates Realty, REIT 84,200 1,847
RMC (GBP) 12,400 156
Simon DeBartolo Group, REIT 73,272 1,795
Singapore Land (SGD) 36,000 58
Slough Estates (GBP) 47,000 252
Starwood Hotels & Resorts, REIT 64,300 1,901
Westfield Trust (AUD) 145,900 261
Woodhead Industries 13,700 221
-----------
11,198
-----------
Miscellaneous Consumer Durables 1.6%
CompX 9,400 177
Corning 17,300 3,347
Eastman Kodak 61,000 3,645
Harman International 6,300 365
Intranet Solutions * 5,400 106
Masco 15,900 313
OCE (EUR) 1,700 24
Ricoh (JPY) 34,000 710
Sony (JPY) 14,000 1,267
-----------
9,954
-----------
Total Consumer Cyclicals 23,761
-----------
TECHNOLOGY 6.5%
Electronic Components 2.2%
Altera * 12,800 1,100
American Superconductor * 4,200 113
Analog Devices * 5,700 439
Analogic 9,800 353
ASM Lithography (EUR)* 2,400 88
Benchmark Electronics * 10,000 340
13
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Burr Brown * 9,600 $ 547
EMC 1,600 186
Epcos (EUR) * 300 37
Exar * 3,050 209
Flextronics International * 15,000 816
Intel 21,800 2,719
Maxim Integrated Products * 18,800 1,192
Methode Electronics (Class A) 14,400 517
Motorola 100 9
PMC-Sierra * 2,600 398
QuickLogic * 4,700 121
Rohm (JPY) 3,000 936
SDL * 2,200 499
SIPEX * 7,900 173
Spirent (GBP) 47,700 266
Texas Instruments 22,800 1,647
Xilinx * 9,100 692
-----------
13,397
-----------
Electronic Systems 1.2%
Applied Materials * 13,500 1,128
Applied Micro Circuits * 2,900 288
Armor Holdings * 21,100 231
Hewlett-Packard 9,700 1,165
Lifeline Systems * 6,500 79
Lo-Jack * 13,400 92
Nokia ADR 65,300 3,396
PE Biosystems 5,700 316
Solectron * 15,100 499
STMicroelectronics (EUR) 7,800 465
-----------
7,659
-----------
Information Processing 0.5%
Adecco (CHF) 212 167
Cybersource * 1,800 26
Dell Computer * 28,800 1,243
F.Y.I. * 12,400 406
Hitachi ADR 7,000 856
Source Information Management * 9,600 132
-----------
2,830
-----------
14
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Office Automation 0.1%
Technitrol 11,400 $ 787
-----------
787
-----------
Specialized Computer 0.1%
Sun Microsystems * 8,000 613
Virata * 2,400 99
-----------
712
-----------
Telecommunications 2.2%
Aether Systems * 700 96
Airgate PCS * 1,700 52
Airnet Commerce * 1,500 22
Alcatel Alsthom (EUR) 11,000 609
Avant * 6,400 100
Cisco Systems * 45,500 2,589
Deutsche Telekom (EUR) 27,700 1,719
Ditech Communications * 2,800 231
France Telecom (EUR) 900 131
France Telecom ADR 8,600 1,248
LM Ericsson (Class B) ADR 95,600 1,957
Marconi (GBP) 19,200 233
NEXTLINK Communications * 2,400 168
Nortel Networks 15,600 847
QUALCOMM * 2,900 192
Singapore Telecommunications (SGD) 159,000 216
Sonera Group (EUR) 8,700 441
Sprint PCS * 1,700 94
Tele Norte Leste Participacoes ADR 1,206 24
Tellabs * 900 59
Telstra (AUD) 65,000 252
Uniphase * 8,000 704
Vyyo * 1,800 26
West TeleServices * 7,000 185
WorldCom* 33,873 1,273
-----------
13,468
-----------
Aerospace and Defense 0.2%
DONCASTERS ADR * 3,300 39
Harsco 800 22
Honeywell International 4,800 262
15
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
United Technologies 9,000 $ 544
Woodward Governor 4,500 110
-----------
977
-----------
Total Technology 39,830
-----------
CAPITAL EQUIPMENT 1.6%
Electrical Equipment 1.3%
ABB (CHF) 1,554 193
Bang & Olufsen (Class B) (DKK) 4,300 156
Canon (JPY) 17,000 783
GE 46,500 2,447
Getronics (EUR)* 5,400 90
hi/fn * 4,800 139
LSI Industries 11,700 201
Matsushita Electric Industrial (JPY) 43,000 1,016
Matsushita Electric Works (JPY) 2,000 23
Mitsubishi Electric (JPY) 85,000 835
Tyco International 52,442 2,468
-----------
8,351
-----------
Machinery 0.3%
Danaher 11,300 544
Deere 17,000 707
GKN (GBP) 12,400 172
Kennametal 9,500 251
NN Ball & Roller 10,600 94
-----------
1,768
-----------
Total Capital Equipment 10,119
-----------
BUSINESS SERVICES AND
TRANSPORTATION 5.2%
Computer Service and Software 2.6%
724 Solutions * 700 25
Actuate * 2,100 49
America Online 24,300 1,288
Analysts International 11,800 95
Ariba * 4,300 224
Automatic Data Processing * 19,400 1,066
BISYS Group * 3,600 237
16
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
BMC Software * 12,100 $ 532
Cambridge Technology Partners * 6,800 54
Computer Associates 9,600 494
Concord Communications * 4,800 119
Digital Impact * 3,400 38
Electronic Arts * 1,800 115
Electronic Data Systems 600 39
First Data 19,384 1,087
Fujitsu (JPY) 31,000 878
Great Plains Software * 3,700 154
iGATE Capital* 9,200 143
Interact Commerce* 4,600 69
Intuit * 2,900 105
Jack Henry & Associates 2,000 87
Keynote Systems * 9,300 324
Lexmark International Group (Class A) * 1,400 98
Loislaw * 2,400 17
Microsoft * 32,200 2,013
net.Genesis * 3,500 68
NetIQ * 4,800 162
Netsolve * 1,200 30
Network Solutions (Class A) * 600 89
Ondisplay* 400 18
Oracle * 27,700 1,989
Peerless Systems * 10,400 25
PeopleSoft * 3,485 48
Peregrine Systems * 3,600 74
Progress Software * 28,700 444
PSINet * 4,800 125
Quest Software * 1,400 57
SAP (EUR) 956 375
Sema (GBP) 7,900 111
Siebel Systems * 7,500 877
Softbank (New shares) (JPY)* 1,400 210
Softbank (JPY) 700 107
Sonicwall * 400 24
SPSS * 6,400 160
SunGard Data Systems * 1,600 54
Synopsys * 500 24
17
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
VERITAS Software * 7,950 $ 926
Verity * 1,200 41
Viasoft * 20,200 168
Vitria Technology* 3,700 129
Websense* 1,400 29
WebTrends * 5,500 141
Yahoo! * 2,500 283
Zebra Technologies (Class A) * 2,700 130
------------
16,268
------------
Distribution Services 0.3%
Compass Group (GBP) 12,500 140
MSC * 9,100 210
Performance Food Group * 3,100 98
Primesource 5,400 28
SCP Pool * 12,800 433
SunSource 6,100 27
TNT Post Groep (EUR) 3,800 92
United Stationers * 11,100 357
Watsco (Class A) 15,100 224
------------
1,609
------------
Environmental 0.1%
CUNO * 7,500 208
IT Group * 10,100 59
Rentokil Group (GBP) 55,800 126
Waterlink * 11,900 33
------------
426
------------
Transportation Services 0.2%
Bergesen (Class A) (NOK) 9,700 201
C.H. Robinson Worldwide 5,900 267
Comfort Systems USA * 20,200 123
EGL * 6,900 166
Expeditors International of Washington 7,200 291
Frozen Food Express 4,100 10
Heartland Express * 3,100 55
Hub Group (Class A) * 1,500 19
International Shipholding 3,700 28
Mitsubishi Heavy Industries (JPY) * 28,000 97
------------
1,257
------------
18
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Miscellaneous Business Services 1.4%
Answerthink Consulting Group * 5,100 $ 91
British Airport Authorities (GBP)* 22,347 164
Consolidated Graphics * 14,700 153
Electro Rent * 13,700 149
G&K Services 6,800 170
H&R Block 31,200 963
Hays (GBP) 32,300 181
Herman Miller 3,000 81
Insituform Technologies (Class A) * 14,200 491
Iron Mountain * 12,150 444
Ivex Packaging * 21,500 194
kforce.com * 7,600 98
Kuoni Reisen Holdings (CHF) 8 3
Maximus * 12,600 261
McGrath RentCorp 6,700 105
Metamor Worldwide * 3,400 78
MPW Industrial Services Group * 11,100 76
New England Business Service 21,000 310
Omnicom 8,500 713
Strayer Education 8,200 204
Tetra Tech * 16,456 364
Vedior (EUR) 7,200 83
Visual Networks * 4,400 218
Waste Management 144,726 2,949
------------
8,543
------------
Airlines 0.1%
Midwest Express Holdings * 11,500 239
Singapore Airlines (SGD) 38,000 331
------------
570
------------
Railroads 0.5%
Kansas City Southern Industries 10,000 673
Norfolk Southern 133,200 2,373
Railtrack Group (GBP) 13,800 172
------------
3,218
------------
Total Business Services and Transportation 31,891
------------
19
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
ENERGY 5.5%
Energy Services 1.0%
Baker Hughes 103,800 $ 3,763
Cooper Cameron * 2,300 160
Grant Prideco * 2,800 65
Johnson Electric (HKD) 139,200 1,027
Smith International * 2,700 214
Tokyo Electric Power (JPY) 27,000 674
Weatherford International * 2,800 121
------------
6,024
------------
Exploration & Production 0.9%
Barrett Resources * 13,400 530
Chieftain International * 15,800 348
Forest Oil * 13,800 220
Key Energy * 28,300 308
National Oilwell * 8,900 232
Noble Affiliates 12,700 499
Santos (AUD) 49,000 126
Unocal 83,600 3,213
------------
5,476
------------
Integrated Petroleum - Domestic 0.8%
Amerada Hess 5,000 332
Conoco (Class B) 33,989 969
USX-Marathon 123,500 3,357
------------
4,658
------------
Integrated Petroleum - International 2.8%
BP Amoco ADR 126,696 6,889
Chevron 11,300 1,044
ENI SPA ADR 8,200 445
Exxon Mobil 49,956 4,162
Repsol ADR 9,200 194
Royal Dutch Petroleum ADR 32,300 2,017
Shell Transport & Trading ADR 9,500 479
Texaco 16,400 942
TotalFinaElf ADR * 5,896 465
TotalFinaElf (EUR) 4,000 630
------------
17,267
------------
Total Energy 33,425
------------
20
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
PROCESS INDUSTRIES 3.1%
Diversified Chemicals 0.6%
Arch Chemicals 20,100 $ 347
Cabot Microelectronics* 4,500 147
Dow Chemical 12,900 1,381
DuPont 13,873 680
Hercules 71,900 1,191
------------
3,746
------------
Specialty Chemicals 1.2%
3M 23,500 2,015
A. Schulman 3,700 44
Akzo Nobel (EUR) 2,600 99
BASF (EUR) 11,280 461
Great Lakes Chemical 25,640 712
Hauser * 5,275 7
Imperial Chemical ADR 4,200 131
MacDermid 3,100 64
Norsk Hydro (NOK) 6,500 249
Pall 75,500 1,586
Sumitomo Chemicals (JPY) 214,000 1,033
Waters * 10,200 964
------------
7,365
------------
Paper and Paper Products 1.0%
Buckeye Technologies* 4,500 86
Dai Nippon Printing (JPY) 32,000 546
Fort James 111,300 2,518
Jefferson Smurfit (EUR) 615 1
Kimberly-Clark 35,800 2,166
Kimberly-Clark de Mexico (Class A) (MXN) * 144,600 448
Smurfit-Stone Container * 4,200 60
------------
5,825
------------
Forest Products 0.2%
Weyerhaeuser 25,200 1,251
------------
1,251
------------
Building and Construction 0.1%
Heidelberg Zement (EUR) 1,300 76
Layne Christensen * 13,300 59
21
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Simpson Manufacturing * 3,600 $ 172
Trex * 3,500 156
U.S. Aggregates 7,000 131
-----------
594
-----------
Total Process Industries 18,781
-----------
BASIC MATERIALS 0.9%
Metals 0.8%
Alcoa 39,008 2,279
Gibraltar Steel 6,600 105
Material Sciences * 16,900 182
Matthews International (Class A) 19,200 484
Pechiney (EUR) 3,000 123
Phelps Dodge 40,800 1,831
-----------
5,004
-----------
Mining 0.1%
Battle Mountain Gold * 50,200 97
Lihir Gold * 183,620 60
Rio Tinto (AUD) 30,000 429
Rio Tinto (GBP) 8,200 120
Union Miniere (EUR) 4,400 156
-----------
862
-----------
Miscellaneous Materials 0.0%
Malayan Cement (MYR) 44,150 16
-----------
16
-----------
Total Basic Materials 5,882
-----------
MISCELLANEOUS 0.0%
Conglomerates 0.0%
Orkla (Class A) (NOK) 4,457 73
-----------
Total Miscellaneous 73
-----------
FOREIGN 1.8%
Europe 1.4%
Aventis (EUR)* 12,300 800
Bank Of Scotland (GBP) 65,500 615
22
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
BG Group (GBP) 50,422 $ 300
Cap Gemini (EUR) 1,200 225
Credit Suisse Group (CHF) 5,200 970
CSM (EUR) 5,000 105
Deutz (EUR)* 35,600 166
DnB Holding (NOK) 25,500 91
eircom (EUR)* 26,400 76
EM.TV & Merchandising (EUR) * 2,100 141
Lafarge (EUR) 1,700 132
Merck KGaA (EUR) 7,100 228
Metro (EUR)* 2,300 75
Munich Re (EUR) * 3,775 1,096
Nordic Baltic Holding (DKK) 63,520 409
Novo Nordisk (DKK) 200 33
OMV (EUR) 200 17
Prosegur Seguridad (EUR) 11,600 148
Publicis (EUR) 1,006 415
Radiometer (DKK) 3,200 103
Rolls Royce (GBP) 89,517 328
Sandvik (SEK) 6,800 149
Securitas (Class B) (SEK) 6,000 140
SGL Carbon (EUR)* 1,300 88
Singapore Press (SGD) 15,000 226
Sommer Allibert (EUR) 18,500 570
Sulzer Winterthur (CHF)* 261 176
Svenska Cellulosa (SEK) 9,200 185
Swatch (CHF) 323 81
Thomson CSF (EUR)* 1,200 47
Tullow Oil (EUR)* 300 0
Unibail (EUR)* 900 116
-----------
8,251
-----------
Far East 0.1%
Nippon Express (JPY) 68,000 379
-----------
379
-----------
Other Foreign 0.3%
Bouygues (EUR)* 218 135
Carso Global Telecom (MXN)* 94,400 214
Pao de Acucar GDR 7,500 225
23
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Siemens (EUR) 6,100 $ 894
Unibanco GDR 4,000 97
Woolworths (AUD) 116,200 385
-----------
1,950
-----------
Total Foreign 10,580
-----------
Total Common Stocks and Rights (Cost $297,560) 355,878
-----------
CORPORATE BONDS 13.1%
Abitibi Consolidated, 6.95%, 4/1/08 $ 2,000,000 1,764
Allied Holdings, Gtd. Sr. Sub. Notes, 8.625%,
10/1/07 500,000 442
American Airlines, 9.71%, 1/2/07 34,511 36
American Builders & Contractors Supply, Sr.
Sub. Notes
10.625%, 5/15/07 500,000 410
American Express, 7.60%, 8/15/02 300,000 301
American Pacific, Sr. Notes, 9.25%, 3/1/05 350,000 346
Amerigas Partners, Sr. Notes, 10.125%, 4/15/07 200,000 200
Amkor Technology, 9.25%, 5/1/06 350,000 338
AMR, 9.00%, 9/15/16 100,000 97
Associated Materials, Sr. Sub. Notes, 9.25%,
3/1/08 500,000 465
Atlantic Richfield, 9.125%, 3/1/11 1,000,000 1,100
Avis Rent A Car, Sr. Sub. Notes, 11.00%, 5/1/09 500,000 507
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 500,000 340
BG Transco Holdings
4.188%, 12/14/22 7,000 10
7.00%, 12/16/24 7,000 10
7.057%, 12/14/09 7,000 11
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 500,000 470
Capital One Master Trust, 6.356%, 6/15/11 236,000 236
Centerpoint Properties Trust, 7.90%, 1/15/03 1,000,000 984
Chancellor Media, Sr. Sub. Notes, 9.00%, 10/1/08 500,000 508
Charter Communication, Sr. Notes, 8.25%, 4/1/07 1,000,000 845
Cinemark USA, Sr. Sub. Notes, 8.50%, 8/1/08 300,000 165
Classic Cable, Sr. Sub. Notes, 9.375%, 8/1/09 500,000 425
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 250,000 238
Comcast Cable Communications, 8.50%, 5/1/27 3,550,000 3,604
Communications & Power Industries
Sr. Sub. Notes, 12.00%, 8/1/05 500,000 375
24
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Consolidated Container, Sr. Sub. Notes,
10.125%, 7/15/09 $ 750,000 $ 739
Container Corp. of America, Sr. Notes,
9.75%, 4/1/03 250,000 251
Courtyard by Marriott II, Sr. Secured Notes
10.75%, 2/1/08 100,000 98
Cox Communications, 7.25%, 11/15/15 600,000 530
Dade International, Sr. Sub. Notes,
11.125%, 5/1/06 100,000 65
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 500,000 480
Delta Mills, Sr. Notes, 9.625%, 9/1/07 150,000 120
Doane Pet Care, Sr. Sub. Notes, 9.75%, 5/15/07 804,000 699
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 250,000 63
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 225,000 180
Energy Corp. of America, Sr. Sub. Notes
9.50%, 5/15/07 500,000 330
Fairfax Financial, 8.25%, 10/1/15 3,550,000 2,983
Focal Communications, (144a), 11.875%, 1/15/10+ 1,000,000 960
Ford Motor Credit, Sr. Notes, 5.80%, 1/12/09 2,000,000 1,714
Frontier Oil, 11.75%, 11/15/09 500,000 481
Frontiervision, Sr. Notes, 11.00%, 10/15/06 500,000 496
Global Crossing Holdings Limited, (144a)
9.50%, 11/15/09+ 600,000 567
Halliburton, 5.625%, 12/1/08 2,000,000 1,738
Harrahs, 7.875%, 12/15/05 1,000,000 920
Hawk, Sr. Notes, 10.25%, 12/1/03 1,000,000 910
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 500,000 515
Hollinger International Publishing, Gtd. Notes
9.25%, 3/15/07 1,000,000 970
Holmes Products, Gtd. Notes, 9.875%, 11/15/07 25,000 16
Intermedia Communications, Sr. Notes, 9.50%, 3/1/09 500,000 459
International Cabletel, Sr. Notes
STEP, 0%, 2/1/06 1,000,000 915
International Game Technology, 8.375%, 5/15/09 1,000,000 925
International Home Foods, Gtd. Sr. Sub. Notes
10.375%, 11/1/06 1,000,000 982
International Wire, Sr. Sub. Notes, 11.75%, 6/1/05 500,000 510
Intertek Finance, Sr. Sub. Notes, 10.25%, 11/1/06 350,000 291
Iron Mountain, Sr. Sub. Notes, 8.75%, 9/30/09 500,000 444
Isle of Capri Casinos, Sr. Sub. Notes, 8.75%,
4/15/09 1,000,000 895
Jitney-Jungle Stores, Sr. Sub. Notes, 12.00%,
3/1/06* 350,000 53
25
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Kappa Beheer BV, 10.625%, 7/15/09 $ 500,000 $ 507
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 1,000,000 1,064
L3 Communications, Sr. Sub. Notes, 10.375%,
5/1/07+ 25,000 25
Lear, 7.96%, 5/15/05 250,000 231
Lenfest Communications, Sr. Notes, 8.375%, 11/1/05 30,000 30
Lennar, (144a), 9.95%, 5/1/10+ 200,000 191
Level 3 Communications, 9.125%, 5/1/08 500,000 431
LifePoint Hospitals, 10.75%, 5/15/09 1,000,000 1,020
Lockheed Martin, 8.20%, 12/1/09 1,500,000 1,465
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 250,000 230
Mediacom, Sr. Notes, 7.875%, 2/15/11 1,000,000 865
Metromedia Fiber Network, Sr. Notes, 10.00%,
11/15/08 925,000 879
Metronet Communications, Sr. Disc. Notes
STEP, 0%, 6/15/08 1,000,000 800
Mohegan Tribal Gaming, Sr. Notes
8.125%, 1/1/06 500,000 466
Nextel Communications, Sr. Disc. Notes
STEP, 0%, 10/31/07 1,400,000 997
Nextlink Communications, Sr. Disc. Notes
STEP, 0%, 6/1/09 1,500,000 855
Niagara Mohawk, 1st Mtg., 7.75%, 5/15/06 2,000,000 1,934
Norfolk Southern, 8.625%, 5/15/10 1,500,000 1,521
Northern Trust, 6.65%, 11/9/04 2,000,000 1,907
Northland Cable Television, Sr. Sub. Notes
10.25%, 11/15/07 250,000 223
NTL, Sr. Notes, Zero Coupon, 4/1/08 1,500,000 934
Nuevo Energy, 9.50%, 6/1/08 1,000,000 950
Orange, Sr. Notes, 9.00%, 6/1/09 1,000,000 1,020
Orion Power Holdings, (144a), 12.00%, 5/1/10+ 450,000 452
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 150,000 154
P&L Coal, 8.875%, 5/15/08 1,000,000 910
Packaging Corp. of America, 9.625%, 4/1/09 1,000,000 980
Paine Webber, Sr. Notes, 6.55%, 4/15/08 3,550,000 3,105
Premier Parks
Sr. Disc. Notes, STEP, 0%, 4/1/08 500,000 329
Sr. Notes, 9.75%, 6/15/07 250,000 239
Price Communications Wireless, 9.125%, 12/15/06 650,000 652
Pride Petroleum Services, Sr. Notes, 9.375%, 5/1/07 350,000 339
26
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Principal Mutual
(144a), 7.875%, 3/1/24+ $ 250,000 $ 221
(144a), 8.00%, 3/1/44+ 3,550,000 3,090
PSINet, Sr. Notes, 10.00%, 2/15/05 350,000 310
Quest Diagnostics, Gtd. Sr. Sub. Notes, 10.75%,
12/15/06 475,000 499
Qwest Communications
Sr. Disc. Notes, STEP, 0%, 10/15/07 500,000 398
Sr. Notes, 7.50%, 11/1/08 125,000 116
R & B Falcon, Sr. Notes, 6.95%, 4/15/08 800,000 672
Raytheon, 5.70%, 11/1/03 1,500,000 1,394
Repap New Brunswick, Sr. Sec. 1st Priority Notes
11.50%, 6/1/04 275,000 275
Rogers Cablesystems, Sr. Sec. 2nd Priority Notes
10.00%, 3/15/05 250,000 252
Safelite Glass, Sr. Sub. Notes, 9.875%, 12/15/06* 200,000 2
Six Flags Entertainment, Sr. Notes, 8.875%, 4/1/06 350,000 329
Sprint, 6.125%, 11/15/08 1,700,000 1,481
Station Casinos, 10.125%, 3/15/06 400,000 404
United Air Lines, 9.20%, 3/22/08 197,491 204
United International Holdings, Sr. Disc. Notes
10.75%, 2/15/08 850,000 510
Universal Compression, Sr. Disc. Notes
STEP, 0%, 2/15/08 1,675,000 1,089
US Can, Sr. Gtd. Notes, 10.125%, 10/15/06 250,000 260
Venture Holdings Trust, Sr. Sub. Notes, 9.50%,
7/1/05 400,000 312
Verio, Sr. Notes, 10.375%, 4/1/05 225,000 236
VoiceStream Wireless, 10.375%, 11/15/09 1,000,000 1,012
WestAmerica Bank, Sub. Notes, 6.99%, 9/30/03 250,000 235
Westinghouse Air Brake, Sr. Notes, 9.375%, 6/15/05 1,000,000 965
Westpoint Stevens, 7.875%, 6/15/05 375,000 315
Williams Communications Group, Sr. Notes
10.875%, 10/1/09 500,000 501
WorldCom, 7.75%, 4/1/07 3,550,000 3,499
Yankeenets Capital, 12.75%, 3/1/07 275,000 259
-----------
Total Corporate Bonds (Cost $88,504) 80,071
-----------
27
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 8.9%
Federal Home Loan Mortgage
6.00%, 2/15/11 - 11/1/25 $ 6,802,958 $ 6,285
6.50%, 10/1/08 - 3/15/11 3,424,427 3,216
7.00%, 10/1/08 - 10/1/25 73,536 70
7.50%, 12/1/29 49,808 48
8.00%, 1/1/25 53,965 54
9.00%, 11/1/04 10,462 11
Federal National Mortgage Assn.
6.50%, 8/15/04 - 8/1/23 2,141,776 2,069
7.00%, 4/18/22 - 1/1/26 3,138,436 3,094
7.50%, 11/1/07 69,781 69
8.00%, 5/1/07 - 5/1/10 52,533 53
8.50%, 8/1/06 - 11/1/21 30,140 31
9.00%, 5/1/01 4,255 4
REMIC, 7.25%, 5/25/20 2,476,696 2,420
REMIC, 8.00%, 2/25/07 56,532 57
Government National Mortgage Assn.
I
6.00%, 5/15/17 - 12/15/28 795,185 727
6.50%, 3/15/26 - 2/15/29 7,594,006 7,117
7.00%, 4/15/24 - 1/15/29 21,996,281 21,130
7.50%, 2/15/16 - 4/15/29 4,835,894 4,760
8.00%, 3/15/22 - 11/15/24 494,301 497
II
7.00%, 9/20/27 - 4/20/30 2,814,466 2,693
8.00%, 10/20/25 47,743 48
-----------
Total U.S. Government Mortgage-Backed Securities
(Cost $56,917) 54,453
-----------
U.S. GOVERNMENT OBLIGATIONS/
AGENCIES 15.6%
Federal Farm Credit
5.25%, 5/1/02 10,000,000 9,643
Federal Home Loan Bank
4.96%, 10/7/05 4,100,000 3,644
6.29%, 6/9/05 600,000 570
28
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Federal Home Loan Mortgage
5.95%, 1/19/06 $ 4,400,000 $ 4,085
Government Trust Certificates
9.25%, 11/15/01 20,809 21
Resolution Funding
8.125%, 10/15/19 210,000 234
Tennessee Valley Authority
5.88%, 4/1/36 2,000,000 1,868
6.235%, 7/15/45 2,000,000 1,983
U.S. Treasury Bonds
5.50%, 8/15/28 1,600,000 1,441
6.125%, 11/15/27 5,650,000 5,537
6.75%, 8/15/26 11,400,000 12,044
7.50%, 11/15/16 3,000,000 3,324
U.S. Treasury Inflation-Indexed Notes
3.625%, 7/15/02 4,539,256 4,500
U.S. Treasury Notes
4.75%, 11/15/08 25,600,000 22,827
4.875%, 3/31/01 17,125,000 16,866
5.50%, 7/31/01 7,300,000 7,196
----------
Total U.S. Government Obligations/Agencies
(Cost $99,678) 95,783
----------
SHORT-TERM INVESTMENTS 3.6%
Money Market Funds 3.6%
Reserve Investment Fund, 6.48% # 21,788,262 21,788
----------
Total Short-Term Investments (Cost $21,788) 21,788
----------
29
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Value
--------------------------------------------------------------------------------
In thousands
Total Investments in Securities
99.4% of Net Assets (Cost $564,447) $ 607,973
Other Assets Less Liabilities 3,883
-------------
NET ASSETS $ 611,856
-------------
# Seven-day yield
* Non-income producing
+ Private Placement
ADR American Depository Receipt
ADS American Depository Share
GDR Global Depository Receipt
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
STEP Stepped coupon note for which the interest rate will adjust on specified
future date(s)
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at period-end amounts to
0.9% of net assets.
AUD Australian dollar
CHF Swiss franc
DKK Danish krone
EUR Euro
GBP British sterling
HKD Hong Kong dollar
JPY Japanese yen
MXN Mexican peso
MYR Malaysian ringgit
NOK Norwegian krone
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
May 31, 2000
-----------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value (cost $564,447) $ 607,973
Securities lending collateral 81,791
Other assets 6,036
Total assets 695,800
Liabilities
Obligation to return securities lending collateral 81,791
Other liabilities 2,153
Total liabilities 83,944
NET ASSETS $ 611,856
------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 3,448
Accumulated net realized gain/loss - net of distributions 20,086
Net unrealized gain (loss) 43,516
Paid-in-capital applicable to 37,757,605 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares authorized 544,806
NET ASSETS $ 611,856
------------
NET ASSET VALUE PER SHARE $ 16.20
------------
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
Investment Income (Loss)
Year
Ended
5/31/00
Income
Interest $ 17,345
Dividend 6,072
Securities lending 218
Total income 23,635
Expenses
Investment management 3,341
Shareholder servicing 2,070
Custody and accounting 194
Prospectus and shareholder reports 75
Registration 39
Legal and audit 15
Directors 6
Miscellaneous 4
Total expenses 5,744
Expenses paid indirectly (4)
Net expenses 5,740
Net investment income (loss) 17,895
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 28,061
Foreign currency transactions (29)
Net realized gain (loss) 28,032
Change in net unrealized gain or loss
Securities (15,747)
Other assets and liabilities
denominated in foreign currencies (8)
Change in net unrealized gain or loss (15,755)
Net realized and unrealized gain (loss) 12,277
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 30,172
-----------
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
Year
Ended
5/31/00 5/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 17,895 $ 12,772
Net realized gain (loss) 28,032 9,213
Change in net unrealized gain or loss (15,755) 14,567
Increase (decrease) in net assets from operations 30,172 36,552
Distributions to shareholders
Net investment income (17,255) (11,763)
Net realized gain (14,884) (12,214)
Decrease in net assets from distributions (32,139) (23,977)
Capital share transactions*
Shares sold 254,049 285,469
Distributions reinvested 31,960 23,845
Shares redeemed (201,877) (120,554)
Increase (decrease) in net assets from capital
share transactions 84,132 188,760
Net Assets
Increase (decrease) during period 82,165 201,335
Beginning of period 529,691 328,356
End of period $ 611,856 $ 529,691
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*Share information
Shares sold 15,627 18,147
Distributions reinvested 2,007 1,530
Shares redeemed (12,571) (7,655)
Increase (decrease) in shares outstanding 5,063 12,022
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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May 31, 2000
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NOTES TO FINANCIAL STATEMENTS
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NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Personal Strategy Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The Personal Strategy Balanced
Fund (the fund), a diversified, open-end management investment company, is
one of the portfolios established by the corporation and commenced
operations on July 29, 1994. The fund seeks the highest total return over
time, consistent with an emphasis on both capital growth and income, by
investing in a diversified portfolio typically consisting of about 60%
stocks, 30% bonds, and 10% money market securities.
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.
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.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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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 repayment as ordinary income. For MBS acquired after June 8,
1997, premiums are recognized as gain or loss; discounts are recognized as
gain or loss, except to the extent of accrued market discount.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with federal income tax regulations and may differ from those determined in
accordance with generally accepted accounting principles. Expenses paid
indirectly reflect credits earned on daily uninvested cash balances at the
custodian and are used to reduce the fund's custody charges.
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.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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Although risk is mitigated by the collateral, the fund could experience a
delay in recovering its securities and a possible loss of income or value
if the borrower fails to return them. At May 31, 2000, the value of loaned
securities was $80,152,000; aggregate collateral consisted of $81,791,000
in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $233,730,000 and $209,087,000,
respectively, for the year ended May 31, 2000. Purchases and sales of U.S.
government securities aggregated $90,809,000 and $60,913,000, respectively,
for the year ended May 31, 2000.
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 May 31, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$564,447,000. Net unrealized gain aggregated $43,526,000 at period-end, of
which $81,369,000 related to appreciated investments and $37,843,000 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 $293,000 was payable at May 31, 2000. The fee is computed
daily and paid monthly, and consists of an individual fund fee equal to
0.25% of average daily net assets and a group fee. The group fee is based
on the combined assets of certain mutual funds sponsored by the manager or
Rowe Price-Fleming International, Inc. (the group). The group fee rate
ranges from 0.48% for the first $1 billion of assets to 0.295% for assets
in excess of $120 billion. At May 31, 2000, and for the year 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.
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
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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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 $1,949,000 for the year ended May 31, 2000, of which $216,000
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 year ended May 31,
2000, totaled $1,302,000 and are reflected as interest income in the
accompanying Statement of Operations.
During the year ended May 31, 2000, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $2,000 with
certain affiliates of the manager and paid commissions of $20 related
thereto.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
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To the Board of Directors of T. Rowe Price Personal Strategy Funds, Inc. and
Shareholders of T. Rowe Price Personal Strategy Balanced Fund
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of T. Rowe
Price Personal Strategy Balanced Fund (one of the portfolios comprising T.
Rowe Price Personal Strategy Funds, Inc., hereafter referred to as the
"Fund") at May 31, 2000, and the results of its operations, the changes in
its net assets and the financial highlights for each of the fiscal periods
presented, in conformity with accounting principles generally accepted in
the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at May 31, 2000 by correspondence with
custodians, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
June 19, 2000
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 5/31/00
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We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included $14,884,000 from long-term
capital gains, subject to the 20% rate gains category.
For corporate shareholders, $3,594,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
39
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For fund and account information Walk-In Investor Centers:
or to conduct transactions, For directions, call 1-800-225-5132
24 hours, 7 days a week or visit our Web site
By touch-tone telephone
Tele*Access 1-800-638-2587 Baltimore Area
By Account Access on the Internet Downtown
www.troweprice.com/access 101 East Lombard Street
Owings Mills
For assistance Three Financial Center
with your existing 4515 Painters Mill Road
fund account, call:
Shareholder Service Center Boston Area
1-800-225-5132 386 Washington Street
Wellesley
To open a brokerage account
or obtain information, call: Colorado Springs
1-800-638-5660 4410 ArrowsWest Drive
Internet address: Los Angeles Area
www.troweprice.com Warner Center
21800 Oxnard Street, Suite 270
Plan Account Lines for retirement Woodland Hills
plan participants:
The appropriate 800 number appears Tampa
on your retirement account statement. 4200 West Cypress Street
10th Floor
T. Rowe Price Associates
100 East Pratt Street Washington, D.C.
Baltimore, Maryland 21202 900 17th Street N.W.
Farragut Square
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus appropriate to the fund or funds
covered in this report.
Invest with Confidence
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor.
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