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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
GROWTH FUND
MAY 31, 2000
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH 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 $ 19.02 $ 18.05 $ 15.20 $ 13.69 $ 11.44
Investment activities
Net investment income (loss) 0.33* 0.34* 0.29* 0.27* 0.30*
Net realized and
unrealized gain (loss) 1.06 1.40 3.01 2.37 2.29
Total from
investment activities 1.39 1.74 3.30 2.64 2.59
Distributions
Net investment income (0.32) (0.32) (0.26) (0.24) (0.27)
Net realized gain (0.52) (0.45) (0.19) (0.89) (0.07)
Total distributions (0.84) (0.77) (0.45) (1.13) (0.34)
NET ASSET VALUE
End of period $ 19.57 $ 19.02 $ 18.05 $ 15.20 $ 13.69
----------------------------------------------------------
Ratios/Supplemental Data
Total return(u) 7.49%* 10.01%* 22.02%* 19.89%* 22.83%*
Ratio of total expenses to
average net assets 1.10%* 1.10%* 1.10%* 1.10%* 1.10%*
Ratio of net investment
income (loss) to average
net assets 1.93%* 2.00%* 2.15%* 2.24%* 2.27%*
Portfolio turnover rate 42.6% 36.1% 33.3% 39.6% 39.5%
Net assets, end of period
(in thousands) $ 270,663 $ 213,631 $ 147,347 $ 67,552 $24,954
</TABLE>
(u) 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 5/31/02.
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
May 31, 2000
-------------------------
PORTFOLIO OF INVESTMENTS Shares/Par Value
--------------------------------------------------------------------------------
In thousands
COMMON STOCKS AND RIGHTS 76.8%
FINANCIAL 12.4%
Bank and Trust 5.7%
Abbey National (GBP) 31,900 $ 424
ABN Amro (EUR) 8,200 187
Allied Irish Banks (EUR) * 15,500 143
Australia & New Zealand Banking Group (AUD) 12,000 83
Australia & New Zealand Banking Group ADR 3,600 125
Banca Intesa (EUR) 66,800 264
Banca Popolare di Milano (EUR) 8,200 53
Banco Bradesco ADR 11,800 80
Banco de Bilbao Vizcaya Argentaria ADR 29,700 412
Banco Frances del Rio de la Plata ADR 6,000 116
Bank of America 28,300 1,572
Bank of New York 16,600 779
Bank One 26,440 874
Bankgesellschaft Berlin (EUR) * 8,100 127
Banque National de Paris (EUR) 2,500 226
Barclays (GBP) 13,900 360
Charter One Financial 3,551 81
Chase Manhattan 8,500 635
Chittenden 11,400 316
Citizens Banking 7,300 133
Commonwealth Bank of Australia (AUD) 14,800 236
DBS Group Holdings (SGD) 14,304 143
Downey Financial 12,800 381
Dresdner Bank (EUR) 12,700 521
First Bell Bancorp 1,400 20
First Mariner Bancorp 600 4
First Security 3,300 51
Firstar 23,600 603
Frankfort First Bancorp 2,100 25
Fuji Bank (JPY) 46,000 356
Glacier Bancorp 7,531 96
HSBC Holdings (GBP) 45,501 502
Industrial Bank of Japan (JPY) 36,000 281
3
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
KBC Bancassurance Holding (EUR) 3,200 $ 137
Marshall & Ilsley 600 29
Mellon Financial 42,100 1,624
Overseas Chinese Bank (SGD) 18,060 102
Societe Generale (EUR) 1,304 75
Southwest Bancorporation * 11,900 236
State Street 6,500 725
Sumitomo Bank (JPY) 29,000 380
Summit Bancorp 2,500 72
Svenska Handelsbanken (Series A) (SEK) 14,100 199
Unicredito (EUR) 63,200 280
Washington Mutual 13,950 401
Wells Fargo 15,000 679
WestAmerica 5,600 160
-------
15,308
-------
Insurance 3.1%
ACE Limited 16,600 445
Aegon (EUR) 4,400 159
Allied Zurich (GBP) 35,300 397
American General 10,000 641
American International Group 2,462 277
AMP Limited (AUD) 9,600 83
Brown and Brown 5,700 266
Harleysville Group 3,000 51
Istituto Nazionale delle Assicurazioni (EUR) 49,400 110
London Pacific Group ADR 8,000 75
Marsh & McLennan 5,500 605
Medical Assurance 9,960 113
PartnerRe Holdings 6,500 241
Schweizerische Rueckversicherungs (CHF) 155 298
Selective Insurance 2,700 50
St. Paul 31,000 1,163
Sumitomo Marine & Fire Insurance (JPY) 73,000 457
UnumProvident 65,000 1,475
W. R. Berkley 3,600 79
XL Capital (Class A) 25,000 1,488
-------
8,473
-------
4
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Financial Services 3.6%
American Express 22,800 $1,227
Amvescap (GBP) 15,200 200
Associates First Capital (Class A) 6,900 189
AXA (EUR) 1,900 280
Capital One Financial 11,600 548
Charles Schwab 4,350 125
Citigroup 31,248 1,943
Delta Financial * 2,300 4
Fannie Mae 33,300 2,002
Financial Federal * 5,400 96
Freddie Mac 28,900 1,286
Goldman Sachs Group 600 44
Grupo Financiero Banamex (MXN) * 33,400 109
ING Groep (EUR) 6,350 380
ITLA Capital * 3,000 39
Morgan Stanley Dean Witter 7,400 533
Nomura Securities (JPY) 13,000 298
Pearson (GBP) 9,100 272
Providian Financial 1,800 160
-------
9,735
-------
Total Financial 33,516
-------
UTILITIES 4.7%
Telephone 3.1%
ALLTEL 800 52
AT&T 16,774 582
AT&T Liberty Media Group * 5,900 261
BellSouth 15,000 700
British Telecommunications ADR 2,300 335
Cable & Wireless ADR 6,432 143
Compania de Telecomunicaciones de Chile (Class A) ADR 6,350 125
GTE 1,700 108
KPN (EUR) 2,400 217
Nextel Communications * 4,900 454
Nippon Telegraph & Telephone (JPY) 58 689
Portugal Telecom (EUR) 5,500 60
5
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Rural Cellular (Class A) * 1,400 $ 95
SBC Communications 12,600 551
Sprint 20,000 1,210
Swisscom (CHF) 463 163
Tele Danmark A/S (DKK) 700 49
Telebras ADR 3,500 405
Telecom Corp. of New Zealand ADR 8,600 240
Telecom Italia (EUR) 25,940 358
Telecom Italia Mobile (EUR) 47,400 494
Telefonica de Espana ADR 5,501 335
Telefonos de Mexico (Class L) ADR 10,700 521
Western Wireless * 2,100 100
-------
8,247
-------
Electric Utilities 1.4%
Cleco 9,500 325
Electrabel (EUR) 326 75
Empresa Nacional de Electricidad Chile ADR * 8,024 95
Enersis ADS * 2,100 45
FirstEnergy 21,737 546
GPU 5,800 164
Hong Kong Electric (HKD) 42,000 141
Iberdrola (EUR) 24,500 313
National Grid (GBP) 11,200 86
PECO Energy 8,300 365
Powergen (GBP) 13,300 87
TXU 16,000 572
Unicom 16,600 692
Unisource Energy 2,500 38
Veba (EUR) 5,920 299
-------
3,843
-------
Water Utilities 0.2%
Suez Lyonnaise des Eaux (EUR) 2,800 470
United Water Resources 1,600 56
-------
526
-------
Total Utilities 12,616
-------
6
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
CONSUMER NONDURABLES 13.6%
Cosmetics 0.8%
Chattem * 4,700 $ 56
International Flavors & Fragrances 49,300 1,676
Kao (JPY) 14,000 425
-------
2,157
-------
Beverages 0.9%
Anheuser-Busch 14,300 1,108
Coca-Cola 4,500 240
Compania Cervecerias Unidas ADR 3,200 71
Diageo ADR 5,319 184
Fomento Economico Mexica UBD (Represents 1 Class B
and 4 Series D shares) (MXN) 13,500 51
LVMH (EUR) 558 228
PepsiCo 15,000 611
-------
2,493
-------
Food Processing 1.9%
American Italian Pasta * 4,500 111
Associated British Foods (GBP) 33,800 228
Cadbury Schweppes (GBP) 14,400 96
Cadbury Schweppes ADR 3,800 102
Campbell 30,000 930
Carrefour (EUR) 7,900 559
Danisco (DKK) 600 22
Eridania Beghin-Say (EUR) 1,200 110
General Mills 31,120 1,235
International Multifoods 14,300 199
Nestle (CHF) 198 378
Quaker Oats 800 59
Ralston Purina 34,900 648
Sara Lee 14,600 263
Seneca Foods (Class A) * 2,800 32
Seneca Foods (Class B) * 1,300 15
Unilever 5,439 276
-------
5,263
-------
Hospital Supplies/Hospital Management 0.8%
Airgas * 7,800 42
7
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Baxter International 7,100 472
Cephalon * 2,100 $ 109
Guidant * 100 5
Lincare * 6,900 200
Medtronic 1,100 57
Mentor 10,200 246
Molecular Devices * 2,200 117
Quorum Health Group * 3,000 29
Renal Care Group * 7,250 173
Smith & Nephew (GBP) 62,500 168
Steris * 7,300 66
Terumo (JPY) 14,000 447
-------
2,131
-------
Pharmaceuticals 5.1%
American Home Products 63,860 3,441
Amgen * 5,500 350
AstraZeneca Group ADR 8,700 366
AstraZeneca Group (GBP) 7,495 316
Aurora Biosciences * 1,900 90
Boron Lepore & Associates * 800 6
Bristol-Myers Squibb 5,400 297
Daiichi Pharmaceutical (JPY) 5,000 93
Eli Lilly 6,100 464
Genetech * 3,400 365
Glaxo Wellcome ADR 9,800 552
Imclone Systems * 500 35
Immunomedics * 1,400 17
Incyte Pharmaceuticals * 700 37
Johnson & Johnson 1,100 98
MedImmune * 1,600 249
Merck 5,900 440
Novartis (CHF) 714 1,053
Noven Pharmaceuticals * 2,500 47
NPS Pharmaceuticals * 2,300 29
Pfizer 33,160 1,478
Pharmacia 21,459 1,115
Schering-Plough 10,400 503
Takeda Chemical Industries (JPY) 11,000 751
8
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Triangle Pharmaceuticals * 5,500 $ 35
Warner-Lambert 13,500 1,649
-------
13,876
-------
Biotechnology 0.3%
Abegenix * 600 47
Alkermes * 3,600 131
Anesta * 2,700 40
COR Therapeutics * 1,500 95
Cubist Pharmaceuticals * 900 26
Gilead Sciences * 400 22
Inhale Therapeutic Systems * 4,200 306
Neurocrine Biosciences * 1,400 30
Serologicals * 4,400 18
Viropharma * 800 9
-------
724
-------
Health Care Services 0.7%
AmeriPath * 7,400 64
CIGNA 4,900 435
Orthodontic Centers of America * 4,800 110
Packard BioScience * 1,900 27
UnitedHealth Group 11,900 887
Wellpoint Health Networks * 5,300 385
-------
1,908
-------
Miscellaneous Consumer Products 3.1%
Bridgestone (JPY) 5,000 114
Colgate-Palmolive 25,800 1,358
Cone Mills * 10,000 57
Culp 4,500 28
Dan River * 12,500 62
Electrolux (Class B) (SEK) 4,600 78
Energizer Holdings * 11,633 198
Harcourt General 20,000 790
Kuraray (JPY) 6,000 62
Lion Nathan (NZD) 71,500 143
Mattel 60,000 814
Mitsui (JPY) 44,000 309
Philip Morris 53,950 1,409
Philips Electronics 11,860 524
9
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Polymer Group 3,800 $ 28
Quicksilver * 3,300 45
Reebok * 3,900 54
Sola * 8,100 41
Stride Rite 9,900 65
Textron 15,000 941
Tomkins (GBP) 57,100 164
Unifi * 6,200 79
US Can* 13,700 226
UST 37,700 627
WestPoint Stevens 2,900 30
Yue Yuen Industrial (HKD) 42,000 83
-------
8,329
-------
Total Consumer Nondurables 36,881
-------
CONSUMER SERVICES 8.5%
Restaurants 0.1%
Applebees 1,600 51
Buca * 10,500 147
PJ America * 3,700 40
Ruby Tuesday 8,200 81
Uno Restaurant 4,000 49
-------
368
-------
General Merchandisers 0.9%
Bon-Ton Stores * 11,500 26
Caseys General Stores 21,600 255
Columbia Sportswear * 5,500 145
JUSCO (JPY) 13,000 223
Marui (JPY) 13,000 238
Target 5,600 351
Tesco (GBP) 122,080 369
Wal-Mart 16,400 945
-------
2,552
-------
Speciality Merchandisers 2.6%
Circuit City Stores 2,500 124
CompuCom Systems * 17,400 42
CVS 11,812 514
10
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Home Depot 13,650 $ 666
Kroger * 16,400 326
Lowes 5,600 261
Nordstrom 30,000 754
O Charleys * 9,000 126
Omron (JPY) 23,000 594
Priceline.com * 400 15
PurchasePro.com * 1,500 32
Safeway * 19,100 881
The Gap 100 3
Toys R Us * 96,000 1,512
Tupperware 50,700 1,119
Urban Outfitters * 4,600 42
Wild Oats Markets * 3,800 35
------
7,046
------
Entertainment and Leisure 2.3%
Disney 60,000 2,531
Houghton Mifflin 600 24
Hutchison Whampoa (HKD) 57,200 659
McDonalds 5,700 204
Papa Johns * 6,000 150
Readers Digest (Class A) 36,600 1,240
Sharp (JPY) 14,000 252
Sonic * 2,600 72
Viacom (Class B) * 16,383 1,016
------
6,148
------
Media and Communications 2.5%
American Tower Systems (Class A) * 1,300 48
Asatsu (JPY) 9,300 303
Classic Communications * 4,000 28
Clear Channel Communications * 8,478 635
Comcast (Class A Special) * 3,900 148
Elsevier (EUR) 5,900 55
Emmis Broadcasting (Class A) * 5,300 181
Granada Group (GBP) 8,300 74
Infinity Broadcasting (Class A) * 11,400 361
Mediaset (EUR) 11,600 180
News 4,400 200
11
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Pegasus Communications * 2,400 $ 100
Publishing & Broadcasting (AUD) 23,500 173
R.R. Donnelley 85,400 2,108
Sinclair Broadcast Group (Class A) * 7,200 59
Time Warner 5,400 426
Vodafone Airtouch ADR 33,300 1,526
Young Broadcasting (Class A) * 3,100 72
------
6,677
------
Printing and Publishing 0.1%
Reed International (GBP) 34,200 226
------
226
------
Total Consumer Services 23,017
------
CONSUMER CYCLICALS 5.1%
Automobiles and Related 0.5%
A.O. Smith (Class B) 13,850 291
Cycle & Carriage (SGD) 10,000 20
DaimlerChrysler (EUR) 3,400 185
Fiat (EUR) * 3,700 94
Honda ADR 2,700 183
Keystone Automotive * 2,600 19
Littelfuse * 8,800 352
Strattec Security * 1,900 66
Volkswagen (EUR) 4,800 193
Volvo (Class B) (SEK) 1,800 43
Volvo, Rights (SEK) * 1,800 0
------
1,446
------
Building and Real Estate 2.5%
Apartment Investment & Management, REIT 2,400 96
Arden Realty, REIT 5,400 124
Cemex (Represents 2 Class A and 1 Class B shares) (MXN) 22,000 93
Cheung Kong Holdings (HKD) 48,000 439
City Developments (SGD) 8,000 27
DBS Land (SGD) 24,000 27
EastGroup Properties, REIT 9,200 198
Federal Realty Investment Trust, REIT 51,300 1,125
First Washington Realty Trust, REIT 4,200 87
12
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Glenborough Realty Trust, REIT 6,100 $ 95
JP Realty, REIT 6,700 121
Parkway Properties, REIT 8,900 268
Reckson Associates Realty (Class B), REIT 3,692 84
Reckson Associates Realty, REIT 50,000 1,097
RMC (GBP) 7,200 91
Simon DeBartolo Group, REIT 41,640 1,020
Singapore Land (SGD) 18,000 29
Slough Estates (GBP) 27,100 145
Starwood Hotels & Resorts, REIT 40,000 1,183
Westfield Trust (AUD) 83,300 149
Woodhead Industries 7,100 115
------
6,613
------
Miscellaneous Consumer Durables 2.1%
CompX 5,100 96
Corning 9,800 1,896
Eastman Kodak 35,600 2,127
Harman International 3,500 203
Intranet Solutions * 3,100 61
Masco 9,300 183
OCE (EUR) 1,000 14
Ricoh (JPY) 18,000 376
Sony (JPY) 8,000 724
------
5,680
------
Total Consumer Cyclicals 13,739
------
TECHNOLOGY 8.5%
Electronic Components 2.9%
Altera * 7,700 661
American Superconductor * 2,200 59
Analog Devices * 3,500 269
Analogic 5,200 187
ASM Lithography (EUR) * 1,500 55
Benchmark Electronics * 5,700 194
Burr Brown * 5,550 316
EMC 1,100 128
Epcos (EUR) * 200 25
13
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Exar * 1,800 $ 124
Flextronics International * 8,800 479
Intel 12,500 1,559
Maxim Integrated Products * 11,000 697
Methode Electronics (Class A) 7,800 280
Motorola 100 9
PMC-Sierra * 1,600 245
QuickLogic * 2,000 51
Rohm (JPY) 2,000 624
SDL * 1,200 272
SIPEX * 5,000 110
Spirent (GBP) * 27,600 154
Texas Instruments 13,200 954
Xilinx * 5,700 434
------
7,886
------
Electronic Systems 1.6%
Applied Materials * 7,900 660
Applied Micro Circuits * 1,600 159
Armor Holdings * 11,000 120
Hewlett-Packard 5,800 697
Lifeline Systems * 3,900 48
Lo-Jack * 8,300 57
Nokia ADR 37,900 1,971
PE Biosystems 2,500 139
Solectron * 8,900 294
STMicroelectronics (EUR) 4,500 268
------
4,413
------
Information Processing 0.6%
Adecco (CHF) 123 97
Cybersource * 1,000 14
Dell Computer * 17,100 738
F. Y. I. * 7,000 229
Hitachi ADR 4,200 514
Source Information Management * 5,400 74
------
1,666
------
Office Automation 0.2%
Technitrol 6,400 442
------
442
------
14
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Specialized Computer 0.1%
Sun Microsystems * 4,700 $ 360
Virata * 1,400 58
------
418
------
Aerospace and Defense 0.2%
DONCASTERS ADR * 1,500 18
Harsco 400 11
Honeywell International 3,200 175
United Technologies 3,600 217
Woodward Governor 2,100 51
------
472
------
Telecommunications 2.9%
Aether Systems * 200 28
Airgate PCS * 900 27
Airnet Commerce * 300 4
Alcatel Alsthom (EUR) 6,220 344
Avant * 3,600 56
Cisco Systems * 26,300 1,497
Deutsche Telekom (EUR) 15,900 987
Ditech Communications * 1,600 132
France Telecom (EUR) 700 102
France Telecom ADR 4,700 682
JDS Uniphase * 4,800 422
LM Ericsson (Class B) ADR 53,600 1,097
Marconi (GBP) 11,100 135
NEXTLINK Communications * 2,400 168
Nortel Networks 8,800 478
QUALCOMM * 1,700 113
Singapore Telecommunications (SGD) 80,000 109
Sonera Group (EUR) 5,100 258
Sprint PCS * 2,200 122
Tele Norte Leste Participacoes ADR 409 8
Tellabs * 400 26
Telstra (AUD) 36,000 140
Vyyo * 1,900 28
West TeleServices * 4,100 108
WorldCom * 17,727 666
------
7,737
------
Total Technology 23,034
------
15
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
EDUCATION 0.1%
ITT Educational Service * 2,700 $ 45
Societe BIC (EUR) 4,600 204
------
Total Education 249
------
CAPITAL EQUIPMENT 2.2%
Electrical Equipment 1.8%
ABB (CHF) 887 110
Bang & Olufsen (Class B) (DKK) 2,400 87
Canon (JPY) 9,000 415
GE 29,100 1,531
Getronics (EUR) 3,000 50
hi/fn * 2,300 67
LSI Industries 6,600 113
Matsushita Electric Industrial (JPY) 26,000 614
Matsushita Electric Works (JPY) 1,000 12
Mitsubishi Electric (JPY) 51,000 501
Tyco International 29,298 1,379
------
4,879
------
Machinery 0.4%
Danaher 7,200 347
Deere 10,000 416
GKN (GBP) 7,200 100
Kennametal 5,900 155
NN Ball & Roller 5,200 46
------
1,064
------
Total Capital Equipment 5,943
------
BUSINESS SERVICES AND TRANSPORTATION 6.9%
Computer Service and Software 3.5%
724 Solutions * 100 4
Actuate * 1,200 28
America Online 14,300 758
Analysts International 7,700 62
Ariba * 2,500 130
16
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Automatic Data Processing 10,600 $ 582
BISYS Group * 1,700 112
BMC Software * 8,100 356
Cambridge Technology Partners * 2,700 22
Computer Associates 5,600 288
Concord Communications * 2,300 57
Digital Impact * 2,000 22
Electronic Arts * 900 57
Electronic Data Systems 300 19
First Data 10,970 615
Fujitsu (JPY) 19,000 538
Great Plains Software * 2,100 88
iGATE Capital * 5,300 83
Interact Commerce * 3,000 45
Intuit * 1,700 62
Jack Henry & Associates 1,200 52
Keynote Systems * 5,200 181
Lexmark International Group (Class A) * 800 56
Loislaw * 1,200 8
Microsoft * 18,800 1,176
net.Genesis * 2,700 52
NetIQ * 2,700 91
Netsolve * 1,000 25
Network Solutions (Class A) * 400 59
Ondisplay * 200 9
Oracle * 16,600 1,192
Peerless Systems * 5,400 13
PeopleSoft * 1,062 15
Peregrine Systems * 2,100 43
Progress Software * 16,000 248
PSINet * 2,700 70
Quest Software * 1,400 57
SAP (EUR) 547 214
Sema (GBP) 4,600 65
Siebel Systems * 4,400 515
Softbank (New shares) (JPY) * 800 120
Softbank (JPY) 400 61
Sonicwall * 200 12
17
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
SPSS * 3,500 $ 88
SunGard Data Systems * 900 31
Synopsys * 200 9
VERITAS Software * 4,725 550
Verity * 700 24
Viasoft * 12,600 105
Vitria Technology * 2,700 94
Websense * 700 15
WebTrends * 3,800 98
Yahoo! * 1,400 158
Zebra Technologies (Class A) * 1,500 72
------
9,506
------
Distribution Services 0.3%
Compass Group (GBP) 7,200 81
MSC * 5,400 125
Performance Food Group * 2,100 66
Primesource 2,000 11
SCP Pool * 6,600 223
SunSource * 4,100 18
TNT Post Groep (EUR) 2,200 53
United Stationers * 6,800 219
Watsco (Class A) 9,000 133
------
929
------
Environmental 0.1%
CUNO * 4,600 128
IT Group * 6,100 35
Rentokil Group (GBP) 32,100 73
Waterlink * 4,700 13
------
249
------
Transportation Services 0.3%
Bergesen (Class A) (NOK) 5,600 116
C.H. Robinson Worldwide 3,500 159
Comfort Systems USA * 9,000 54
EGL * 4,350 104
Expeditors International of Washingt on 4,100 165
Frozen Food Express 2,000 5
Heartland Express * 2,300 41
Hub Group (Class A) * 1,000 13
18
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
International Shipholding 2,200 $ 17
Mitsubishi Heavy Industries (JPY) 15,000 52
------
726
------
Miscellaneous Business Services 1.9%
Answerthink Consulting Group * 2,900 52
British Airport Authorities (GBP) 12,799 94
Consolidated Graphics * 7,400 77
Electro Rent * 8,200 89
G&K Services 3,600 90
H&R Block 19,500 602
Hays (GBP) 18,600 104
Herman Miller 1,200 33
Insituform Technologies (Class A) * 7,700 266
Iron Mountain * 6,500 237
Ivex Packaging * 11,600 104
kforce.com * 7,200 93
Kuoni Reisen Holdings (CHF) 4 2
Maximus * 6,900 143
McGrath RentCorp 3,800 60
Metamor Worldwide * 3,200 73
MPW Industrial Services Group * 8,300 57
New England Business Service 12,000 177
Omnicom 4,800 403
Strayer Education 5,700 142
Tetra Tech * 8,912 197
Vedior (EUR) 4,100 47
Visual Networks * 2,400 119
Waste Management 88,643 1,806
------
5,067
------
Airlines 0.1%
Midwest Express Holdings * 5,500 114
Singapore Airlines (SGD) 19,000 166
------
280
------
Railroads 0.7%
Kansas City Southern Industries 5,200 350
Norfolk Southern 82,000 1,460
Railtrack Group (GBP) 8,000 100
------
1,910
------
Total Business Services and Transportation 18,667
------
19
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
ENERGY 7.2%
Energy Services 1.3%
Baker Hughes 61,500 $ 2,229
Cooper Cameron * 900 63
Grant Prideco * 1,500 35
Johnson Electric (HKD) 79,000 583
Smith International * 1,400 111
Tokyo Electric Power (JPY) 14,000 350
Weatherford International * 1,800 77
-------
3,448
-------
Exploration and Production 1.1%
Barrett Resources * 7,300 289
Chieftain International * 7,300 161
Forest Oil * 7,900 126
Key Energy * 15,200 165
National Oilwell * 5,000 130
Noble Affiliates 6,700 263
Santos (AUD) 22,600 58
Unocal 50,500 1,941
-------
3,133
-------
Integrated Petroleum - Domestic 1.0%
Amerada Hess 2,600 173
Conoco (Class B) 19,865 566
USX-Marathon 73,700 2,004
-------
2,743
-------
Integrated Petroleum - International 3.8%
BP Amoco ADR 74,794 4,067
Chevron 6,500 601
ENI SPA ADR 4,700 255
Exxon Mobil 30,302 2,524
Repsol ADR 5,500 116
Royal Dutch Petroleum 18,800 1,174
Shell Transport & Trading ADR 5,500 277
Texaco 9,800 563
TotalFinaElf ADR 3,648 288
TotalFinaElf (EUR) 2,133 336
-------
10,201
-------
Total Energy 19,525
-------
20
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
PROCESS INDUSTRIES 4.1%
Diversified Chemicals 0.8%
Arch Chemicals 10,400 $ 179
Cabot Microelectronics * 2,500 82
Dow Chemical 8,000 856
DuPont 7,061 346
Hercules 42,000 696
------
2,159
------
Specialty Chemicals 1.6%
3M 14,100 1,209
A. Schulman 2,800 33
Akzo Nobel (EUR) 1,500 57
BASF (EUR) 6,750 276
Great Lakes Chemical 15,640 434
Hauser * 1,200 2
Imperial Chemical ADR 2,400 75
MacDermid 1,200 25
Norsk Hydro (NOK) 3,800 146
Pall 46,100 968
Sumitomo Chemicals (JPY) 129,000 623
Waters * 6,000 567
------
4,415
------
Paper and Paper Products 1.3%
Buckeye Technologies * 2,500 47
Dai Nippon Printing (JPY) 17,000 290
Fort James 66,200 1,498
Jefferson Smurfit (EUR)* 368 1
Kimberly-Clark 21,400 1,295
Kimberly-Clark de Mexico (Class A) (MXN) 83,800 260
Smurfit-Stone Container * 2,600 37
------
3,428
------
Forest Products 0.3%
Weyerhaeuser 15,000 744
------
744
------
Building and Construction 0.1%
Heidelberg Zement (EUR) 500 29
Layne Christensen * 6,500 29
Simpson Manufacturing * 2,200 105
21
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Trex * 2,000 $ 89
U.S. Aggregates 4,700 88
------
340
------
Total Process Industries 11,086
------
BASIC MATERIALS 1.3%
Metals 1.1%
Alcoa 23,532 1,375
Gibraltar Steel 2,100 33
Material Sciences * 10,100 109
Matthews International (Class A) 11,000 277
Pechiney (EUR) 1,700 70
Phelps Dodge 25,000 1,122
------
2,986
------
Mining 0.2%
Battle Mountain Gold * 26,400 51
Lihir Gold (AUD) * 102,240 33
Rio Tinto (AUD) 17,100 244
Rio Tinto (GBP) 4,700 69
Union Miniere (EUR) 2,500 89
------
486
------
Miscellaneous Materials 0.0%
Malayan Cement (MYR) 20,250 8
8
------
Total Basic Materials 3,480
------
MISCELLANEOUS 0.0%
Conglomerates 0.0%
Orkla (Class A) (NOK) 2,485 41
------
Total Miscellaneous 41
------
FOREIGN 2.2%
Europe 1.7%
Aventis (EUR) 6,900 449
Bank Of Scotland (GBP) 37,700 354
BG Group (GBP) 27,644 165
22
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Cap Gemini (EUR) 700 $ 131
Credit Suisse Group (CHF) 3,000 560
CSM (EUR) 2,900 61
Deutz (EUR) * 20,400 95
DnB Holding (NOK) 11,800 42
eircom (EUR) * 15,800 46
EM.TV & Merchandising (EUR) * 1,200 81
Lafarge (EUR) 900 70
Merck KGaA (EUR) 4,100 131
Metro (EUR) * 1,300 42
Munich Re (EUR) 2,160 627
Nordic Baltic Holding (DKK) 36,841 237
Novo Nordisk (DKK) 100 16
OMV (EUR) 100 9
Prosegur Seguridad (EUR) 7,000 89
Publicis (EUR) 569 235
Radiometer (DKK) 1,900 61
Rolls Royce (GBP) 51,478 189
Sandvik (SEK) 3,600 79
Securitas (Class B) (SEK) 3,500 82
SGL Carbon (EUR) * 800 54
Singapore Press (SGD) 8,000 120
Sommer Allibert (EUR) 10,400 320
Sulzer Winterthur (CHF) * 151 102
Svenska Cellulosa (SEK) 5,200 104
Swatch (CHF) 187 47
Thomson CSF (EUR) * 600 23
Tullow Oil (EUR) * 200 0
Unibail (EUR) 500 65
------
4,686
------
Far East 0.1%
Nippon Express (JPY) 36,000 201
------
201
------
Other Foreign 0.4%
Bouygues (EUR) 124 77
Carso Global Telecom (MXN)* 54,800 124
Pao de Acucar GDR 5,100 153
Siemens (EUR) 3,500 513
23
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Unibanco GDR 2,700 $ 65
Woolworths (AUD) 66,400 220
----------
1,152
----------
Total Foreign 6,039
----------
Total Common Stocks and Rights (Cost $174,252) 207,833
----------
CORPORATE BONDS 9.2%
Abitibi Consolidated, 6.95%, 4/1/08 $1,000,000 882
Adelphia Communications
7.875%, 5/1/09 25,000 20
9.875%, 3/1/05 175,000 167
Allied Holdings, Gtd. Sr. Sub. Notes, 8.625%, 10/1/07 100,000 89
American Builders & Contractors Supply, Sr. Sub. Notes
10.625%, 5/15/07 100,000 82
American Standard, 9.25%, 12/1/16 28,000 28
Amerigas Partners, Sr. Notes, 10.125%, 4/15/07 50,000 50
Amkor Technology, 9.25%, 5/1/06 100,000 97
Associated Materials, Sr. Sub. Notes, 9.25%, 3/1/08 100,000 93
Atlantic Richfield, 9.125%, 3/1/11 2,000,000 2,200
Avis Rent A Car, Sr. Sub. Notes, 11.00%, 5/1/09 100,000 101
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 100,000 68
Bally Total Fitness, Sr. Sub. Notes, 9.875%, 10/15/07 200,000 184
Bethlehem Steel, 10.375%, 9/1/03 50,000 49
BG Transco Holdings
4.188%, 12/14/22 3,000 4
7.00%, 12/16/24 3,000 4
7.057%, 12/14/09 3,000 5
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 100,000 94
Chancellor Media, Sr. Sub. Notes
8.00%, 11/1/08 50,000 50
8.125%, 12/15/07 50,000 50
Charter Communication, Sr. Notes, 8.25%, 4/1/07 200,000 169
Chattem, Sr. Sub. Notes, 12.75%, 6/15/04 100,000 103
Cinemark USA, Sr. Sub. Notes, 8.50%, 8/1/08 50,000 28
Classic Cable, Sr. Sub. Notes, 9.375%, 8/1/09 100,000 85
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 50,000 48
Comcast Cable Communications, 8.50%, 5/1/27 1,550,000 1,574
24
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Communications & Power Industries
Sr. Sub. Notes, 12.00%, 8/1/05 $ 100,000 $ 75
Consolidated Container, Sr. Sub. Notes, 10.125%,
7/15/09 100,000 98
Container Corp. of America, Gtd., 10.75%, 5/1/02 25,000 25
Courtyard by Marriott II, Sr. Secured Notes
10.75%, 2/1/08 100,000 98
CSC Holdings, Sr. Notes, 7.875%, 12/15/07 100,000 93
Dade International, Sr. Sub. Notes, 11.125%, 5/1/06 25,000 16
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 50,000 48
Delta Mills, Sr. Notes, 9.625%, 9/1/07 25,000 20
Doane Pet Care, Sr. Sub. Notes, 9.75%, 5/15/07 87,000 76
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 50,000 13
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 25,000 20
Energy Corp. of America, Sr. Sub. Notes
9.50%, 5/15/07 100,000 66
Fairfax Financial, 8.25%, 10/1/15 1,550,000 1,303
Focal Communications, (144a), 11.875%, 1/15/10+ 200,000 192
Ford Motor Credit, Sr. Notes, 5.80%, 1/12/09 1,000,000 857
Frontier Oil, 11.75%, 11/15/09 100,000 96
Frontiervision, Sr. Notes, 11.00%, 10/15/06 100,000 99
Global Crossing Holdings Limited, (144a), 9.50%,
11/15/09+ 125,000 118
Halliburton, 5.625%, 12/1/08 1,000,000 869
Harrahs, 7.875%, 12/15/05 200,000 184
Hawk, Sr. Notes, 10.25%, 12/1/03 200,000 182
Hollinger International Publishing, Gtd. Notes, 9.25%,
3/15/07 200,000 194
Intermedia Communications, Sr. Notes, 9.50%, 3/1/09 100,000 92
International Cabletel, Sr. Notes, STEP, 0%, 2/1/06 200,000 183
International Game Technology, 8.375%, 5/15/09 200,000 185
International Home Foods, Gtd. Sr. Sub. Notes
10.375%, 11/1/06 200,000 196
International Wire, Sr. Sub. Notes, 11.75%, 6/1/05 100,000 102
Intertek Finance, Sr. Sub. Notes, 10.25%, 11/1/06 50,000 42
Iron Mountain, Sr. Sub. Notes, 8.75%, 9/30/09 50,000 44
Isle of Capri Casinos, Sr. Sub. Notes, 8.75%, 4/15/09 175,000 157
ISP Holdings, Sr. Notes, 9.75%, 2/15/02 50,000 49
Jitney-Jungle Stores, Sr. Sub. Notes, 12.00%, 3/1/06 * 75,000 11
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 200,000 213
25
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
L3 Communications, Sr. Sub. Notes, 10.375%, 5/1/07 $ 50,000 $ 50
Lear, 7.96%, 5/15/05 50,000 46
Lennar, (144a), 9.95%, 5/1/10+ 50,000 48
Level 3 Communications, 9.125%, 5/1/08 100,000 86
LifePoint Hospitals, 10.75%, 5/15/09 200,000 204
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 75,000 69
WorldCom, 7.75%, 4/1/07 1,550,000 1,528
Mediacom, Sr. Notes, 7.875%, 2/15/11 200,000 173
Metromedia Fiber Network, Sr. Notes, 10.00%, 11/15/08 100,000 95
Metronet Communications, Sr. Disc. Notes
STEP, 0%, 6/15/08 250,000 200
Mohegan Tribal Gaming, Sr. Notes, 8.125%, 1/1/06 175,000 163
Nextel Communications, Sr. Disc. Notes
STEP, 0%, 10/31/07 275,000 196
Nextlink Communications, Sr. Disc. Notes
STEP, 0%, 6/1/09 300,000 171
Niagara Mohawk, 1st Mtg., 7.75%, 5/15/06 1,000,000 967
Norfolk Southern, 8.625%, 5/15/10 500,000 507
Northern Trust, 6.65%, 11/9/04 1,000,000 953
Northland Cable Television, Sr. Sub. Notes
10.25%, 11/15/07 50,000 45
NTL, Sr. Notes, Zero Coupon, 4/1/08 300,000 187
Orange, Sr. Notes, 9.00%, 6/1/09 200,000 204
Orion Power Holdings, (144a), 12.00%, 5/1/10+ 100,000 100
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 50,000 51
Packaging Corp. of America, 9.625%, 4/1/09 200,000 196
Paine Webber, Sr. Notes, 6.55%, 4/15/08 1,550,000 1,356
Premier Parks
Sr. Disc. Notes, STEP, 0%, 4/1/08 100,000 66
Sr. Notes, 9.75%, 6/15/07 50,000 48
Price Communications Wireless, 9.125%, 12/15/06 100,000 100
Pride Petroleum Services, Sr. Notes, 9.375%, 5/1/07 50,000 49
Principal Mutual, (144a), 8.00%, 3/1/44+ 1,550,000 1,349
PSINet, Sr. Notes, 10.00%, 2/15/05 100,000 89
Quest Diagnostics, Gtd. Sr. Sub. Notes, 10.75%, 12/15/06 50,000 53
Qwest Communications,
Sr. Disc. Notes, STEP, 0%, 10/15/07 100,000 80
Sr. Notes, 7.50%, 11/1/08 25,000 23
26
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
R & B Falcon, Sr. Notes, 6.95%, 4/15/08 $ 250,000 $ 210
Raytheon, 5.70%, 11/1/03 300,000 279
Repap New Brunswick, Sr. Sec. Notes, 11.50%, 6/1/04 75,000 75
Riverwood International, Sr. Notes, 10.25%, 4/1/06 200,000 194
Rogers Cablesystems, Sr. Sec. 2nd Priority Notes
10.00%, 3/15/05 50,000 50
Scotland International Finance, Sub. Notes
(144a), 6.50%, 2/15/11+ 100,000 88
Silgan Holdings, Sr. Sub. Deb., 9.00%, 6/1/09 40,000 37
Six Flags Entertainment, Sr. Notes, 8.875%, 4/1/06 100,000 94
Speedway Motorsports, 8.50%, 8/15/07 200,000 181
Sprint, 6.125%, 11/15/08 750,000 653
Station Casinos, 10.125%, 3/15/06 100,000 101
Tenet Healthcare, Sr. Notes, 8.00%, 1/15/05 150,000 140
Triton PCS, Zero Coupon, 5/1/08 275,000 199
United International Holdings, Sr. Disc. Notes
10.75%, 2/15/08 125,000 75
Universal Compression, Sr. Disc. Notes
STEP, 0%, 2/15/08 350,000 227
US Can, Sr. Gtd. Notes, 10.125%, 10/15/06 50,000 52
Venture Holdings Trust, Sr. Sub. Notes, 9.50%, 7/1/05 50,000 39
VoiceStream Wireless, 10.375%, 11/15/09 200,000 202
Westinghouse Air Brake, Sr. Notes, 9.375%, 6/15/05 200,000 193
Westpoint Stevens, 7.875%, 6/15/05 75,000 63
Williams Communications Group, Sr. Notes
10.875%, 10/1/09 100,000 100
Yankeenets Capital, 12.75%, 3/1/07 50,000 47
---------
Total Corporate Bonds (Cost $27,687) 25,091
---------
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES 5.4%
Federal Home Loan Mortgage
6.00%, 2/15/11 5,415,356 5,005
Federal National Mortgage Assn.
6.50%, 8/15/04 - 1/1/26 362,544 346
27
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Government National Mortgage Assn.
I
6.00%, 5/15/26 - 12/15/99 $ 515,234 $ 471
6.50%, 3/15/26 - 6/15/29 5,541,276 5,186
7.00%, 4/15/26 - 11/15/28 1,115,067 1,071
7.50%, 10/15/22 - 12/15/29 531,410 523
8.00%, 1/15/22 - 9/15/24 175,914 177
II
7.00%, 11/20/28 - 4/20/30 1,902,918 1,824
8.00%, 10/20/25 15,914 16
----------
Total U.S. Government Mortgage-Backed Securities
(Cost $15,343) 14,619
----------
U.S. GOVERNMENT OBLIGATIONS/AGENCIES 6.8%
Federal Farm Credit
5.25%, 5/1/02 2,000,000 1,929
Tennessee Valley Authority
5.88%, 4/1/36 2,095,000 1,956
6.235%, 7/15/45 500,000 496
U.S. Treasury Bonds
6.75%, 8/15/26 1,405,000 1,484
7.50%, 11/15/16 1,400,000 1,552
U.S. Treasury Inflation-Indexed Notes
3.625%, 7/15/02 1,174,950 1,165
U.S. Treasury Notes
5.50%, 7/31/01 7,850,000 7,738
6.125%, 8/15/07 2,000,000 1,957
----------
Total U.S. Government Obligations/Agencies
(Cost $18,452) 18,277
----------
SHORT-TERM INVESTMENTS 1.3%
Money Market Funds 1.3%
Reserve Investment Fund, 6.48% # 3,360,055 3,360
----------
Total Short-Term Investments (Cost $3,360) 3,360
----------
28
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
Value
--------------------------------------------------------------------------------
In thousands
Total Investments in Securities
99.5% of Net Assets (Cost $239,093) $ 269,180
Other Assets Less Liabilities 1,483
------------
NET ASSETS $ 270,663
------------
# 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
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
0.7% 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.
29
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
May 31, 2000
-----------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value (cost $239,093) $ 269,180
Securities lending collateral 21,938
Other assets 2,593
Total assets 293,711
Liabilities
Obligation to return securities lending collateral 21,938
Other liabilities 1,110
Total liabilities 23,048
NET ASSETS $ 270,663
--------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 2,241
Accumulated net realized gain/loss - net of distributions 9,532
Net unrealized gain (loss) 30,079
Paid-in-capital applicable to 13,831,105 shares of $0.0001
par value capital stock outstanding; 1,000,000,000
shares authorized 228,811
NET ASSETS $ 270,663
--------------
NET ASSET VALUE PER SHARE $ 19.57
--------------
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
Year
Ended
5/31/00
Investment Income (Loss)
Income
Interest $ 3,982
Dividend 3,320
Securities lending 64
Total income 7,366
Expenses
Investment management 1,493
Shareholder servicing 907
Custody and accounting 160
Prospectus and shareholder reports 68
Registration 19
Legal and audit 14
Directors 6
Miscellaneous 4
Total expenses 2,671
Expenses paid indirectly (1)
Net expenses 2,670
Net investment income (loss) 4,696
Realized and Unrealized Gain (Loss)
Net realized gain (loss) Securities 13,793
Foreign currency transactions (10)
Net realized gain (loss) 13,783
Change in net unrealized gain or loss
Securities (1,122)
Other assets and liabilities
denominated in foreign currencies (6)
Change in net unrealized gain or loss (1,128)
Net realized and unrealized gain (loss) 12,655
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 17,351
--------
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH 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) $ 4,696 $ 3,505
Net realized gain (loss) 13,783 3,728
Change in net unrealized gain or loss (1,128) 10,458
Increase (decrease) in net assets from operations 17,351 17,691
Distributions to shareholders
Net investment income (4,136) (2,912)
Net realized gain (6,721) (4,096)
Decrease in net assets from distributions (10,857) (7,008)
Capital share transactions*
Shares sold 133,209 107,693
Distributions reinvested 10,837 6,960
Shares redeemed (93,508) (59,052)
Increase (decrease) in net assets from capital
share transactions 50,538 55,601
Net Assets
Increase (decrease) during period 57,032 66,284
Beginning of period 213,631 147,347
End of period $ 270,663 $ 213,631
--------- ---------
*Share information
Shares sold 6,893 5,921
Distributions reinvested 577 398
Shares redeemed (4,868) (3,253)
Increase (decrease) in shares outstanding 2,602 3,066
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
--------------------------------------------------------------------------------
May 31, 2000
-----------------------------
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 fund seeks the highest total return over time,
consistent with a primary emphasis on capital growth and a secondary
emphasis on income, by investing in a diversified portfolio typically
consisting of about 80% stocks and 20% bonds and 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.
33
<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 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 funds 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 funds 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 funds lending agent. Collateral is
maintained over the life of the loan in an amount not less than 100% of the
value of loaned securi-
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T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
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ties. 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 $21,164,000; aggregate collateral consisted
of $21,938,000 in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $117,278,000 and $87,362,000,
respectively, for the year ended May 31, 2000. Purchases and sales of U.S.
government securities aggregated $21,947,000 and $13,454,000, 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
$239,093,000. Net unrealized gain aggregated $30,087,000 at period-end, of
which $47,106,000 related to appreciated investments and $17,019,000 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 $151,000 was payable at May 31, 2000. The fee is computed
daily and paid monthly, and consists of an individual fund fee equal to
0.30% 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 0.295% 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.
Under the terms of the investment management agreement, the manager is
required to bear any expenses through May 31, 2002, which would cause the
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T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
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funds ratio of total expenses to average net assets to exceed 1.10%.
Thereafter, through May 31, 2004, the fund is required to reimburse the
manager for these expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement without causing
the funds ratio of total expenses to average net assets to exceed 1.10%.
Pursuant to this agreement, $10,000 of management fees were not accrued by
the fund for the year ended May 31, 2000. Additionally, $77,000 of
unaccrued management fees related to a previous expense limitation are
subject to reimbursement through May 31, 2002.
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 funds 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 $883,000 for the year ended May 31, 2000, of which $99,000
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 $359,000 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 $15 related
thereto.
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T. ROWE PRICE PERSONAL STRATEGY GROWTH FUND
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---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Directors of T. Rowe Price Personal Strategy Funds, Inc. and
Shareholders of T. Rowe Price Personal Strategy Growth 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 Growth 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 Funds 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 GROWTH FUND
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TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 5/31/00
--------------------------------------------------------------------------------
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 funds distributions to shareholders included:
. $388,000 from short-term capital gains,
. $6,333,000 from long-term capital gains, subject to the 20% rate gains
category.
For corporate shareholders, $1,931,000 of the funds distributed income and
short-term capital gains qualified for the dividends-received deduction.
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T. ROWE PRICE SHAREHOLDER SERVICES
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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()and the T. Rowe Price Web
site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES(*)
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service 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 mar-
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a September 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending on
size of order.
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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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