<PAGE>
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT - FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
T. ROWE PRICE
PERSONAL STRATEGY
BALANCED FUND
-------------------
NOVEMBER 30, 1999
-------------------
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Unaudited
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year 7/29/94
Ended Ended Through
11/30/99 5/31/99 5/31/98 5/31/97 5/31/96 5/31/95
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 16.20 $ 15.88 $ 14.07 $ 12.68 $ 11.15 $ 10.00
Investment activities
Net investment income 0.24 0.46 0.46* 0.42* 0.41* 0.33*
Net realized and
unrealized gain (loss) 0.09 0.81 2.15 1.69 1.56 1.08
Total from investment
activities 0.33 1.27 2.61 2.11 1.97 1.41
Distributions
Net investment income (0.25) (0.46) (0.45) (0.40) (0.37) (0.26)
Net realized gain -- (0.49) (0.35) (0.32) (0.07) --
Total distributions (0.25) (0.95) (0.80) (0.72) (0.44) (0.26)
NET ASSET VALUE
End of period $ 16.28 $ 16.20 $ 15.88 $ 14.07 $ 12.68 $ 11.15
--------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
<S> <C> <C> <C> <C> <C> <C>
Total return. 2.07% 8.37% 19.15%* 17.21%* 17.97%* 14.35%*
Ratio of total expenses to
average net assets 0.96%+ 1.00% 1.05%* 1.05%* 1.05%* 1.05%+*
Ratio of net investment
income to average
net assets 2.99%+ 3.01% 3.09%* 3.20%* 3.44%* 3.74%+*
Portfolio turnover rate 33.2%+ 34.3% 41.5% 54.0% 47.7% 25.8%+
Net assets, end of period
(in thousands) $ 603,945 $ 529,691 $ 328,356 $ 205,883 $ 116,826 $ 13,336
</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.
+ Annualized
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Unaudited November 30, 1999
- ------------------------
PORTFOLIO OF INVESTMENTS Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
COMMON STOCKS 58.1%
FINANCIAL 9.0%
Bank and Trust 4.2%
Abbey National (GBP) * 44,000 $ 743
ABN Amro (EUR) 31,100 757
Australia & New Zealand Banking Group (AUD) 10,000 72
Australia & New Zealand Banking ADR 6,400 229
Banca Commerciale Italiana (EUR) 86,000 438
Banco de Bilbao Vizcaya ADR 39,600 552
Banco Frances del Rio de la Plata ADR 10,204 240
Bank of America 48,700 2,849
Bank of New York 27,600 1,101
Bank One 38,700 1,364
Bankgesellschaft Berlin (EUR) 14,000 217
Barclays (GBP) 36,055 1,041
Charter One Financial 7,226 157
Chase Manhattan 21,800 1,684
Chittenden 9,100 294
Citizens Banking 14,000 355
DBS Group Holdings (SGD) * 28,028 364
Deutsche Bank (EUR) * 12,680 831
Downey Financial 19,700 396
Dresdner Bank (EUR) * 18,900 885
First Bell Bancorp 3,800 61
First Mariner Bancorp 1,500 14
First Security 5,000 141
Firstar 26,100 679
Frankfort First Bancorp 3,400 51
Glacier Bancorp 13,881 241
KBC Bancassurance Holding (EUR) 6,900 324
Marshall & Ilsley 1,300 87
Mediobanca (EUR) 43,200 399
Mellon Financial 46,800 1,705
Overseas Chinese Banking (SGD) 36,750 275
Societe Generale (EUR) 4,072 878
State Street 3,800 279
Sumitomo Bank (JPY) 48,000 738
3
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Summit Bancorp 6,200 $ 202
Svenska Handelsbanken (Series A) (SEK) * 33,000 450
UBS (CHF) 4,806 1,315
UST 8,000 253
Washington Mutual 28,605 829
Wells Fargo 39,100 1,818
WestAmerica 2,900 91
Westpac Banking (EUR) 40,000 269
25,668
Insurance 2.0%
ACE Limited 20,100 342
Allied Zurich (GBP) * 61,800 744
American General 15,500 1,136
American International Group 4,893 505
Brown and Brown 10,800 421
E.W. Blanch 6,300 366
Harleysville Group 6,000 90
Istituto Nazionale delle Assicurazioni (EUR) 168,300 470
London Pacific Group ADR 3,800 116
Marsh & McLennan 10,000 786
PartnerRe Holdings 12,200 358
Royal & Sun Alliance (GBP) 78,999 483
Schweizerische Rueckversicherungs (CHF) 347 708
Selective Insurance 5,900 104
St. Paul 63,300 1,911
Sumitomo Marine & Fire Insurance (JPY) 117,000 826
Unumprovident 800 26
W. R. Berkley 9,200 197
XL Capital (Class A) 46,413 2,367
11,956
Financial Services 2.8%
American Express 15,500 2,345
Associates First Capital (Class A) 19,000 632
Assurances Generales de France (EUR) 4,100 226
AXA (EUR) 6,300 850
Capital One Financial 15,000 698
Citigroup 58,598 3,157
Delta Financial * 9,900 46
Fannie Mae 33,400 2,225
4
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Financial Federal * 10,200 $ 211
Freddie Mac 45,400 2,242
Goldman Sachs Group 1,300 98
HSBC Holdings (GBP) 75,345 975
ING Groep (EUR) 14,784 832
ITLA Capital * 4,000 59
Morgan Stanley Dean Witter 6,500 784
Pearson (GBP) 35,200 842
Providian Financial 800 63
Unidanmark (Class A) (DKK) 6,000 455
---------
16,740
---------
Total Financial 54,364
---------
UTILITIES 3.9%
Telephone 2.8%
ALLTEL 5,200 450
AT&T 31,024 1,733
AT&T Liberty Group Media * 6,300 263
BellSouth 21,500 993
British Telecommunications ADR 4,600 941
Cable & Wireless ADR 11,614 308
Compania de Telecomunicaciones
de Chile (Class A) ADR 4,350 80
GTE 3,500 256
Nextel Communications * 5,000 496
Nippon Telegraph & Telephone (JPY) 80 1,438
Rural Cellular (Class A) * 4,000 319
SBC Communications 34,400 1,787
Sprint 54,600 3,788
Telebras ADR 5,600 508
Telecom Corp. of New Zealand ADR 15,100 506
Telecom Italia (EUR) 62,775 692
Telecom Italia Mobile (EUR) 87,300 686
Telefonica de Espana ADR * 11,141 692
Telefonos de Mexico (Class L) ADR 8,900 824
Telekom Malaysia (MYR) 100 0
Western Wireless 4,900 287
---------
17,047
---------
5
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Electric Utilities 1.1%
Cleco 13,200 $ 431
Electrabel (EUR) 1,090 348
Empresa Nacional de Electricidad Chile ADR 3,657 49
Endesa ADR 14,500 287
FirstEnergy 41,917 977
GPU 11,000 352
Hong Kong Electric (HKD) 71,000 224
PECO Energy 17,700 583
Powergen (GBP) 29,300 254
Texas Utilities 31,200 1,117
Unicom 33,600 1,073
Veba (EUR) 12,080 596
---------
6,291
---------
Water Utilities 0.0%
United Water Resources 2,900 97
97
---------
Total Utilities 23,435
---------
CONSUMER NONDURABLES 10.9%
Cosmetics 0.7%
Chattem * 6,600 128
Gillette 1,100 44
International Flavors & Fragrances 75,300 2,772
Kao (JPY) 40,000 1,190
---------
4,134
---------
Beverages 0.9%
Anheuser-Busch 29,100 2,177
Bass (GBP) 45,600 512
Coca-Cola 4,300 289
Diageo ADR 16,075 592
LVMH (EUR) 2,845 924
PepsiCo 21,600 747
---------
5,241
---------
Food Processing 1.6%
American Italian Pasta * 7,400 222
Associated British Foods (GBP) 46,300 228
Cadbury Schweppes (GBP) 27,200 173
Cadbury Schweppes ADR 21,200 519
6
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Campbell 21,100 $ 942
Carrefour (EUR) 3,600 628
Danisco (DKK) 4,800 196
Eridania Beghin-Say (EUR) 2,500 280
General Mills 41,120 1,550
International Multifoods 23,000 321
McCormick 24,300 779
Nestle (CHF) 623 1,121
Quaker Oats 800 52
Ralston Purina 46,100 1,369
Sara Lee 27,400 664
Seneca Foods (Class A) * 5,300 63
Seneca Foods (Class B) * 3,100 37
Unilever NV 8,178 445
United Natural Foods * 10,000 84
---------------
9,673
---------------
Hospital Supplies/Hospital Management 0.5%
Baxter International 8,500 574
Cephalon * 1,000 22
Medtronic 1,000 39
Mentor 21,400 499
Quorum Health Group * 11,100 99
Renal Care Group * 12,200 249
Smith & Nephew (GBP) 134,400 466
Steris * 12,900 168
Terumo (JPY) 39,000 1,188
---------------
3,304
---------------
Pharmaceuticals 3.8%
American Home Products 91,660 4,766
Amgen * 10,200 464
AstraZeneca Group ADR 16,400 730
Aurora Biosciences * 2,800 33
Biogen * 2,700 197
Boron Lepore & Associates * 5,200 38
Bristol-Myers Squibb 25,000 1,827
Daiichi Pharmaceutical (JPY) 38,000 536
Eli Lilly 12,000 861
Emisphere Technologies * 100 2
Gehe (EUR) 15,400 602
7
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
In thousands
- --------------------------------------------------------------------------------
Genetech * 6,800 $ 584
Glaxo Wellcome ADR 12,200 725
Imclone Systems * 1,900 69
Incyte Pharmaceuticals * 2,900 84
Johnson & Johnson 12,500 1,297
Liposome * 1,900 24
Merck 18,100 1,421
Novartis (CHF) 779 1,215
Noven Pharmaceuticals * 2,400 31
Pfizer 56,560 2,047
Pharmacia & Upjohn 11,660 638
Schering-Plough 21,400 1,094
Takeda Chemical Industries (JPY) 25,000 1,478
Triangle Pharmaceuticals * 9,400 185
Warner-Lambert 21,000 1,883
--------------
22,831
--------------
Biotechnology 0.2%
Abgenix * 1,100 56
Alkermes * 6,200 264
Anesta * 5,700 84
COR Therapeutics * 2,600 51
Coulter Pharmaceutical * 3,900 66
Gilead Sciences * 1,600 77
Inhale Therapeutic Systems * 12,100 374
Invitrogen * 200 6
Millennium Pharmaceuticals * 500 49
Neurocrine Biosciences * 8,000 105
Northfield Laboratories * 6,600 78
PathoGenesis * 100 2
Serologicals * 11,900 84
--------------
1,296
--------------
Health Care Services 0.4%
Altana (EUR) 3,100 222
AmeriPath * 17,800 145
CIGNA 700 57
IMS Health 10,100 238
Monarch Dental 3,500 7
Orthodontic Centers of America * 7,900 96
8
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
ProMedCo * 7,600 $ 16
United HealthCare 20,600 1,070
US Oncology * 15,100 72
Wellpoint Health Networks * 5,500 317
---------
2,240
---------
Miscellaneous Consumer Products 2.8%
Benetton Group (EUR) 145,600 295
Bridgestone (JPY) 30,000 743
Coles Myer Limited (EUR) 46,400 236
Colgate-Palmolive 57,500 3,155
Cone Mills * 19,000 94
Culp 6,000 37
Dan River * 28,700 154
Hasbro 12,550 271
Huhtamaki (EUR) 3,000 91
Kuraray (JPY) 64,000 723
Lion Nathan (NZD) 166,400 369
Mattel 101,000 1,446
Mitsui (JPY) 119,000 908
NIKE (Class B) 8,300 382
Philip Morris 63,450 1,670
Philips Electronics ADR 7,452 890
Procter & Gamble 6,800 734
Reebok * 4,500 40
Sola * 15,100 215
Stanley Works 34,900 1,086
Stride Rite 19,100 122
Takkt (EUR) * 15,400 88
Tomkins (GBP) 122,500 425
Tomkins ADR 2,393 34
Unifi * 72,800 965
US Can * 24,200 433
UST 37,400 996
WestPoint Stevens 5,400 113
Yue Yuen Industrial (HKD) 127,000 319
---------
17,034
---------
Total Consumer Nondurables 65,753
---------
9
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CONSUMER SERVICES 6.2%
General Merchandisers 1.0%
Bon-Ton Stores * 17,300 $ 85
Caseys General Stores 30,000 383
Columbia Sportswear * 12,500 256
Dayton Hudson 9,500 670
JUSCO (JPY) 30,000 574
Marui (JPY) 51,000 876
Pinault Printemps Redoute (EUR) 4,500 939
Tesco (GBP) 236,646 642
Wal-Mart 28,000 1,614
---------
6,039
---------
Specialty Merchandisers 1.8%
Christian Dior (EUR) 2,200 396
CompuCom Systems * 33,700 106
CVS 17,770 705
Goodys Family Clothing * 8,900 59
Home Depot 16,900 1,336
Kroger * 34,900 744
O Charleys * 13,400 177
Omron (JPY) 35,000 858
Rite Aid 162,600 1,230
Safeway * 28,800 1,062
Toys R Us * 141,700 2,480
Tupperware 89,100 1,587
Urban Outfitters * 6,100 123
---------
10,863
---------
Entertainment and Leisure 1.3%
Carnival (Class A) 5,200 229
Disney 74,000 2,063
Hutchison Whampoa (HKD) 115,000 1,418
McDonalds 15,300 688
MediaOne Group 13,800 1,094
Readers Digest (Class A) 73,900 2,143
Sharp (JPY) 16,000 328
---------
7,963
---------
Media and Communications 2.1%
American Tower Systems (Class A) * 2,700 70
10
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Asatsu (JPY) 14,000 $ 674
CBS * 31,500 1,638
Charter Communications (Class A) 6,500 151
Clear Channel Communications * 10,873 874
Comcast (Class A Special) 6,800 307
Elsevier (EUR) 12,000 118
Emmis Broadcasting (Class A) * 7,100 575
Fox Entertainment Group (Class A) * 13,300 306
France Telecom ADR 7,600 882
Infinity Broadcasting (Class A) * 19,200 700
Pegasus Communications * 3,100 203
Publishing & Broadcasting (EUR) 36,900 243
R.R. Donnelley 84,300 2,023
Sinclair Broadcast Group (Class A) * 13,800 160
Time Warner 18,600 1,147
Tribune 9,900 476
Vodafone Airtouch ADR 40,150 1,895
Young Broadcasting (Class A) * 6,300 253
---------
12,695
---------
Restaurants 0.0%
Buca * 9,000 103
PJ America * 7,200 115
218
---------
Total Consumer Services 37,778
---------
EDUCATION 0.1%
Education 0.1%
ITT Educational Service * 5,000 88
Wolters Kluwer (EUR) * 17,000 513
---------
Total Education 601
---------
CONSUMER CYCLICALS 4.3%
Automobiles and Related 0.4%
A.O. Smith (Class B) 27,300 601
Cycle & Carriage (SGD) 22,000 80
DaimlerChrysler (EUR) 7,200 493
Honda ADR 9,400 777
Keystone Automotive * 6,000 35
11
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Littelfuse * 14,300 $ 300
SPX * 1,600 119
Strattec Security * 2,100 73
--------
2,478
--------
Building and Real Estate 2.0%
Accor (EUR) 2,300 523
Apartment Investment & Management, REIT 4,000 149
Arden Realty, REIT 10,100 194
Cheung Kong Holdings (HKD) 84,000 946
City Developments (SGD) 15,000 85
DBS Land (SGD) 46,000 90
EastGroup Properties, REIT 17,900 311
Federal Realty Investment Trust, REIT 103,700 1,867
First Washington Realty Trust, REIT 10,200 182
Glenborough Realty Trust, REIT 11,200 147
JP Realty, REIT 10,700 183
Parkway Properties, REIT 16,000 478
Reckson Associates Realty (Class B), REIT 6,534 136
Reckson Associates Realty, REIT 94,700 1,912
Simon DeBartolo Group, REIT 84,172 1,962
Singapore Land (SGD) 36,000 85
Slough Estates (GBP) 63,800 353
Starwood Hotels & Resorts, REIT 88,500 1,975
Westfield Trust (AUD) 54,600 104
Woodhead Industries 16,400 217
--------
11,899
--------
Miscellaneous Consumer Durables 1.9%
CompX * 9,400 172
Corning 51,700 4,844
Eastman Kodak 55,400 3,428
Harman International 6,900 355
Masco 17,700 447
OCE (EUR) 7,200 125
Ricoh (JPY) 34,000 631
Sony (JPY) 9,000 1,671
--------
11,673
--------
Total Consumer Cyclicals 26,050
--------
12
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
TECHNOLOGY 4.9%
Electronic Components 1.5%
Altera * 9,600 $ 518
American Superconductor * 4,300 82
Analogic 11,800 352
Benchmark Electronics * 11,100 247
Burr Brown * 7,000 310
EMC * 5,900 493
Exar * 3,800 185
Intel 23,000 1,762
Linear Technology 2,100 149
Maxim Integrated Products * 15,000 1,204
Methode Electronics (Class A) 19,900 540
Motorola 5,400 617
Planar Systems * 9,600 62
PMC-Sierra * 2,700 278
QuickLogic * 5,600 97
SIPEX * 4,800 67
Texas Instruments 12,300 1,182
Xilinx * 9,300 832
---------
8,977
---------
Electronic Systems 0.8%
Applied Materials * 8,300 809
Applied Micro Circuits * 4,100 341
Armor Holdings * 14,300 169
EMS Technologies * 6,100 66
Hewlett-Packard 8,900 844
Lifeline Systems * 6,500 99
Lo-Jack * 17,700 138
Nokia ADR 13,300 1,838
Solectron * 8,400 692
---------
4,996
---------
Information Processing 0.4%
Dell Computer * 23,200 998
F. Y. I. * 9,700 313
Hitachi ADR 4,500 621
IBM 1,800 185
Source Information Management * 14,200 216
---------
2,333
---------
13
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Office Automation 0.4%
Ceridian * 4,200 $ 91
Technitrol 13,000 557
Xerox 64,300 1,740
---------
2,388
---------
Specialized Computer 0.2%
Sun Microsystems * 6,300 833
Virata * 1,900 61
---------
894
---------
Telecommunications 1.4%
ADC Telecommunications * 3,508 187
Aether Systems * 500 38
Airgate PCS * 1,700 67
Avant * 9,100 142
Cacheflow * 400 61
Cisco Systems * 20,750 1,850
Deutsche Telekom ADR 16,900 961
Ditech Communications * 1,700 176
LM Ericsson (Class B) ADR 18,000 868
Lucent Technologies 16,420 1,200
MCI WorldCom * 23,682 1,958
Premisys Communications 3,600 36
Singapore Telecommunications (SGD) 159,000 301
Tellabs * 2,700 175
Uniphase 800 183
Voicestream Wireless * 3,400 314
West TeleServices * 9,400 161
---------
8,678
---------
Aerospace and Defense 0.2%
Allied-Signal 15,100 903
DONCASTERS ADR * 3,300 29
Woodward Governor 5,400 146
1,078
---------
Total Technology 29,344
---------
CAPITAL EQUIPMENT 1.9%
Electrical Equipment 1.5%
ABB (CHF) 6,354 628
Canon (JPY) 29,000 855
14
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
GE 33,800 $ 4,394
LSI Industries 12,100 292
Matsushita Electric Works (JPY) 31,000 300
Mitsubishi Electric (JPY) 51,000 304
Tyco International 56,942 2,281
---------------
9,054
---------------
Machinery 0.4%
Danaher 14,700 722
GKN (GBP) 48,500 759
Kennametal 9,800 326
NN Ball & Roller 12,200 82
S I G Schweis (CHF) 620 341
Toolex Alpha * 2,700 41
---------------
2,271
---------------
Total Capital Equipment 11,325
---------------
BUSINESS SERVICES AND TRANSPORTATION 5.1%
Computer Service and Software 2.5%
America Online * 24,000 1,745
Analysts International 9,600 114
Automatic Data Processing 18,700 923
BISYS Group * 2,800 162
BMC Software * 14,100 1,027
Cambridge Technology Partners * 5,200 75
Citrix Systems * 5,400 513
Computer Associates 11,200 728
Concord Communications * 3,200 171
Digital Impact * 2,100 111
Electronic Arts * 1,700 178
First Data 15,584 674
Great Plains Software * 4,000 214
Jack Henry & Associates 5,200 207
Loislaw * 2,400 73
Mastech * 9,000 170
Microsoft * 34,100 3,104
MMC Networks * 2,100 41
NetIQ * 5,200 220
Netsolve * 1,200 31
15
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Oracle * 16,000 $ 1,085
Parametric Technology * 21,200 480
Peerless Systems * 10,400 90
Phoenix Technologies * 4,600 66
Progress Software * 14,700 587
PSINet * 3,200 160
Quest Software * 700 52
Retek * 1,800 122
SalesLoggix * 5,600 161
Sciquest * 400 13
SPSS * 6,500 149
SunGard Data Systems * 2,000 45
Synopsys * 1,400 101
Syntel * 400 5
Vantive * 1,800 28
VERITAS Software * 5,100 467
Viasoft * 25,300 156
Visio * 4,400 158
Vitria Technology * 300 30
WebTrends * 3,500 201
Wind River Systems * 3,900 135
Yahoo! * 1,200 255
Zebra Technologies (Class A) * 3,600 217
---------------
15,244
---------------
Distribution Services 0.3%
Aviation Sales * 5,800 82
MSC * 7,300 66
Performance Food Group * 4,500 113
Primesource 7,800 47
SCP Pool * 13,800 326
SunSource 6,100 30
U.S. Foodservice * 32,690 593
United Stationers * 6,500 152
Watsco (Class A) 15,400 167
Wilmar Industries * 6,600 90
---------------
1,666
---------------
Environmental 0.1%
CUNO * 10,400 211
16
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
IT Group * 8,400 $ 88
Waterlink * 20,000 62
-------------------
361
-------------------
Transportation Services 0.3%
C.H. Robinson Worldwide 9,200 321
Comfort Systems USA * 20,300 168
Eagle USA Air Freight * 12,500 421
Expeditors International of Washington 7,400 301
Frozen Food Express 6,300 27
Heartland Express * 3,700 55
Hub Group (Class A) * 1,500 26
International Shipholding 3,700 50
Mitsubishi Heavy Industries (JPY) 183,000 595
-------------------
1,964
-------------------
Miscellaneous Business Services 1.5%
Agilent Technologies * 1,800 76
British Airport Authorities (GBP) 70,047 495
Concord EFS * 1,100 29
Consolidated Graphics * 14,300 321
CORT Business Services * 9,800 191
Electro Rent * 13,200 156
H&R Block 28,500 1,226
Insituform Technologies (Class A) * 15,700 393
Iron Mountain 7,450 219
Ivex Packaging * 22,400 237
Maximus * 9,000 252
McGrath Rent 6,700 121
Metamor Worldwide * 6,100 161
MPW Industrial Services Group * 11,100 99
New England Business Service 20,900 473
Omnicom 11,900 1,049
Romac International * 12,800 144
Shorewood Packaging * 34,900 571
Strayer Education 10,000 206
Tetra Tech * 18,656 213
United Parcel Service 3,200 211
Waste Management 127,326 2,069
-------------------
8,912
-------------------
17
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Airlines 0.1%
KLM (EUR) 4,500 $ 110
KLM Royal Dutch Air ADR 525 13
Midwest Express Holdings * 9,000 261
Singapore Airlines (SGD) 38,000 384
--------------
768
--------------
Railroads 0.3%
Kansas City Southern Industries 4,800 286
Norfolk Southern 52,900 1,131
Railtrack Group (GBP) 29,000 446
--------------
1,863
--------------
Total Business Services and Transportation 30,778
--------------
ENERGY 5.7%
Energy Services 1.2%
Baker Hughes 89,700 2,265
BG (GBP) 58,300 307
Cooper Cameron * 2,400 103
Halliburton 8,900 344
Johnson Electric (HKD) 247,200 1,758
Smith International * 3,500 140
Tokyo Electric Power (JPY) 38,000 1,073
Total Fina ADR * 13,596 899
United Utilities (GBP) 60,600 571
Weatherford International 3,200 112
--------------
7,572
--------------
Exploration & Production 0.5%
Key Energy * 26,200 131
National Oilwell * 8,500 121
Santos (EUR) 49,000 131
Unocal 76,300 2,532
--------------
2,915
--------------
Integrated Petroleum - Domestic 1.1%
Amerada Hess 3,700 214
Atlantic Richfield 22,200 2,140
Conoco (Class B) 28,989 759
Occidental Petroleum 51,400 1,128
USX-Marathon 81,900 2,165
--------------
6,406
--------------
18
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Integrated Petroleum - International 2.9%
BP Amoco ADR 108,808 $ 6,630
Chevron 7,900 700
ENI SPA ADR 7,900 428
Exxon 13,160 1,044
Mobil 33,100 3,453
Repsol ADR 22,500 489
Royal Dutch Petroleum ADR 32,100 1,862
Shell Transport & Trading ADR 21,600 985
Texaco 20,500 1,249
Total Fina (Class B) (EUR) 3,800 506
--------------
17,346
--------------
Total Energy 34,239
--------------
PROCESS INDUSTRIES 3.9%
Diversified Chemicals 0.8%
Arch Chemicals 19,900 311
Dow Chemical 16,500 1,932
DuPont 13,773 819
Hercules 75,000 1,781
--------------
4,843
--------------
Specialty Chemicals 1.6%
3M 27,500 2,628
A. Schulman 3,700 59
Air Liquide (L) (EUR) 2,295 337
Akzo Nobel (EUR) 8,300 356
BASF (EUR) 12,180 562
Bayer (EUR) 11,660 492
Great Lakes Chemical 38,240 1,269
Hauser * 5,275 13
Imperial Chemical Industries ADR 7,900 323
Pall 83,000 1,945
Sumitomo Chemicals (JPY) 189,000 1,064
Technip (EUR) 5,000 479
--------------
9,527
--------------
Paper and Paper Products 1.0%
Dai Nippon Printing (JPY) 53,000 924
Fort James 76,500 2,199
Kimberly-Clark 42,200 2,696
19
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Smurfit-Stone Container * 5,900 $ 113
---------------
5,932
---------------
Forest Products 0.2%
International Paper 6,700 350
Weyerhaeuser 19,200 1,176
---------------
1,526
---------------
Building and Construction 0.3%
Blue Circle Industries (GBP) 78,318 451
CBR (EUR) * 1,800 184
Heidelberg Zement (EUR) 4,100 298
Holderbank Financiere Glarus (CHF) 350 439
Layne Christensen * 11,700 79
Simpson Manufacturing * 3,500 146
Trex * 9,700 250
U.S. Aggregates * 9,200 109
---------------
1,956
---------------
Total Process Industries 23,784
---------------
BASIC MATERIALS 1.2%
Metals 1.1%
Gibraltar Steel 4,700 111
Inco * 81,100 1,490
Material Sciences * 17,500 192
Matthews International (Class A) 20,700 470
Phelps Dodge 29,200 1,518
Reynolds Metals 43,400 2,715
---------------
6,496
---------------
Mining 0.1%
Battle Mountain Gold 63,100 158
Lihir Gold (USD) * 41,620 32
Lonrho Africa (GBP) 10,107 6
Rio Tinto (EUR) 19,500 342
---------------
538
---------------
Miscellaneous Materials 0.0%
Malayan Cement (MYR) 44,150 12
Synthetic Industries * 6,800 222
---------------
234
---------------
Total Basic Materials 7,268
---------------
20
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
MISCELLANEOUS 0.1%
Conglomerates 0.1%
Berkshire Hathaway (Class B) * 85 $ 159
Orkla (Class A) (NOK) 19,657 302
-------------
461
-------------
Other Miscellaneous Common Stocks 0.0%
CSM (EUR) * 9,600 195
Other Miscellaneous Common Stocks 2,700 51
-------------
246
-------------
Total Miscellaneous 707
-------------
FOREIGN 0.9%
Europe 0.6%
AstraZeneca Group (GBP) 12,007 535
AXA Colonia Konzern (EUR) 7,300 690
Bank Of Scotland (GBP) 44,600 528
Man (EUR) 12,300 378
Rhone Poulenc (EUR) 5,200 322
Rolls Royce (GBP) 139,117 411
Schneider Electric (EUR) 4,000 270
Singapore Press (SGD) * 15,000 281
Svenska Cellulosa (SEK) 6,700 186
-------------
3,601
-------------
Far East 0.1%
Nippon Express (JPY) 131,000 759
-------------
759
-------------
Other Foreign 0.2%
Bobst (CHF) 236 275
Pacific Dunlop (EUR) 90,900 122
Siemens (EUR) * 5,200 522
Valmet Rauma (EUR) 6,000 65
-------------
984
-------------
Total Foreign 5,344
-------------
Total Common Stocks (Cost $286,712) 350,770
-------------
21
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CORPORATE BONDS 12.9%
Adelphia Communications
7.875%, 5/1/09 $ 575,000 $ 523
9.875%, 3/1/05 425,000 435
Allied Holdings, Gtd. Sr. Sub. Notes,
8.625%, 10/1/07 500,000 438
American Airlines, 9.71%, 1/2/07 36,211 39
American Builders & Contractors Supply, Sr.
Sub. Notes
10.625%, 5/15/07 500,000 443
American Express, 7.60%, 8/15/02 300,000 305
American Pacific, Sr. Notes, 9.25%, 3/1/05 500,000 503
American Radio Systems, Sr. Sub. Notes,
9.00%, 2/1/06 25,000 26
Amerigas Partners, Sr. Notes,
10.125%, 4/15/07 200,000 204
AMR, 9.00%, 9/15/16 100,000 104
Anchor Advanced, Sr. Notes, 11.75%, 4/1/04 1,000,000 900
Associated Materials, Sr. Sub. Notes,
9.25%, 3/1/08 500,000 471
Avis Rent A Car, Sr. Sub. Notes,
11.00%, 5/1/09 500,000 524
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 500,000 453
Building Materials, Sr. Notes, 7.75%, 7/15/05 250,000 229
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 500,000 494
Capital One Master Trust, 6.356%, 6/15/11 236,000 218
Chancellor Media, Sr. Sub. Notes,
9.00%, 10/1/08 1,000,000 1,047
Charter Communication, Sr. Notes,
8.25%, 4/1/07 1,000,000 944
Cinemark USA, Sr. Sub. Notes, 8.50%, 8/1/08 500,000 430
Classic Cable, Sr. Sub. Notes, 9.375%, 8/1/09 500,000 489
Coach USA, Gtd. Sr. Sub. Notes,
9.375%, 7/1/07 375,000 416
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 500,000 517
Comcast Cable Communications, 8.50%, 5/1/27 3,550,000 3,807
Communications & Power, Sr. Sub. Notes,
12.00%, 8/1/05 500,000 401
Consolidated Container, Sr. Sub. Notes, (144a)
10.125%, 7/15/09 750,000 763
Container Corp of America, Sr. Notes,
9.75%, 4/1/03 250,000 259
Courtyard by Marriott II, Sr. Secured Notes
10.75%, 2/1/08 100,000 96
Cox Communications, Deb., 7.25%, 11/15/15 600,000 572
Dade International, Sr. Sub. Notes,
11.125%, 5/1/06 500,000 505
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 500,000 495
Delta Mills, Sr. Notes, 9.625%, 9/1/07 150,000 94
Doane Pet Care, Sr. Sub. Notes,
9.75%, 5/15/07 804,000 773
22
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 $ 250,000 $ 100
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 350,000 312
Energy Corporation of America, Sr. Sub. Notes
9.50%, 5/15/07 500,000 290
Fairfax Financial, 8.25%, 10/1/15 3,550,000 3,124
Federal-Mogul, Sr. Notes, 7.75%, 7/1/06 350,000 326
First Federal Financial, 11.75%, 10/1/04 250,000 260
Flores & Rucks, Sr. Sub. Notes,
9.75%, 10/1/06 250,000 272
Frontiervision, Sr. Notes, 11.00%, 10/15/06 500,000 531
Group Maintenance America, Sr. Sub. Notes
9.75%, 1/15/09 500,000 495
Harrahs Operating, 7.875%, 12/15/05 1,000,000 975
Hawk, Sr. Notes, 10.25%, 12/1/03 1,000,000 940
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 500,000 533
Hollinger International Publishing, Gtd. Notes
9.25%, 3/15/07 1,000,000 980
Holmes Products, Gtd. Notes,
9.875%, 11/15/07 225,000 180
Host Marriott Travel, Sr. Notes,
9.50%, 5/15/05 1,000,000 1,043
Intermedia Communications, Sr. Notes
8.60%, 6/1/08 500,000 456
9.50%, 3/1/09 500,000 478
International Home Foods, Gtd. Sr. Sub. Notes
10.375%, 11/1/06 1,000,000 1,039
International Wire, Sr. Sub. Notes,
11.75%, 6/1/05 500,000 514
Intertek Finance, Sr. Sub. Notes,
10.25%, 11/1/06 350,000 329
Iron Mountain, Sr. Sub. Notes,
8.75%, 9/30/09 500,000 478
Isle of Capri Casinos, Sr. Sub. Notes,
8.75%, 4/15/09 1,000,000 927
Jitney-Jungle Stores, Sr. Sub. Notes,
12.00%, 3/1/06 350,000 84
Kappa Beheer BV, Sr. Sub. Notes, (144a),
10.625%, 7/15/09 500,000 515
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 1,000,000 1,076
Lenfest Communications, Sr. Notes,
8.375%, 11/1/05 30,000 31
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 250,000 235
MCI WorldCom, 7.75%, 4/1/07 3,550,000 3,667
Mediacom LLC, Sr. Notes, 7.875%, 2/15/11 1,000,000 885
Metromedia Fiber Network, Sr. Notes,
10.00%, 11/15/08 925,000 937
Metronet Communications, Sr. Disc. Notes, STEP,
0%, 6/15/08 1,250,000 981
Mohegan Tribal Gaming Authority, Sr. Notes,
8.125%, 1/1/06 850,000 829
Nextel Communications, Sr. Disc. Notes, STEP,
0%, 10/31/07 1,400,000 1,015
Nextlink Communications, Sr. Disc. Notes, STEP,
0%, 6/1/09 1,500,000 900
23
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Niagara Mohawk, Sr. Notes, 7.75%, 10/1/08 $ 75,000 $ 76
Northland Cable Television, Sr. Sub. Notes,
10.25%, 11/15/07 250,000 250
NTL, Sr. Notes, Zero Coupon, 4/1/08 1,500,000 1,035
Nuevo Energy, Sr. Sub. Notes, 9.50%, 6/1/08 1,000,000 997
Orange, Sr. Notes, 9.00%, 6/1/09 1,000,000 1,060
Owens & Minor, Sr. Sub. Notes,
10.875%, 6/1/06 150,000 152
P&L Coal, 8.875%, 5/15/08 1,000,000 990
Packaging Corporation of America,
9.625%, 4/1/09 1,000,000 1,032
Paine Webber, Sr. Notes, 6.55%, 4/15/08 3,550,000 3,296
Paragon Corporate Holdings, Sr. Notes,
9.625%, 4/1/08 125,000 44
Park Place Entertainment, Sr. Sub. Notes,
7.875%, 12/15/05 1,000,000 955
Premier Parks
Sr. Disc. Notes, STEP, 0%, 4/1/08 500,000 337
Sr. Notes, 9.75%, 6/15/07 250,000 249
Price Communications Wireless,
9.125%, 12/15/06 500,000 511
Pride Petroleum Services, Sr. Notes,
9.375%, 5/1/07 350,000 348
Principal Mutual, (144a)
7.875%, 3/1/24 250,000 237
8.00%, 3/1/44 3,550,000 3,307
Protection One, Sr. Sub. Notes, (144a),
8.625%, 1/15/09 250,000 105
Quest Diagnostics, Gtd. Sr. Sub. Notes,
10.75%, 12/15/06 475,000 496
Qwest Communications
Sr. Disc. Notes, STEP, 0%, 10/15/07 500,000 398
Sr. Notes, 7.50%, 11/1/08 125,000 124
R & B Falcon, Sr. Notes, 6.95%, 4/15/08 3,550,000 2,951
Raytheon, 5.70%, 11/1/03 1,500,000 1,405
Red Roof Inns, Sr. Notes, 9.625%, 12/15/03 1,000,000 1,027
Repap New Brunswick, Sr. Secured 1st
Priority Notes
9.00%, 6/1/04 25,000 25
11.50%, 6/1/04 275,000 284
Rogers Cablesystems, Sr. Sec. 2nd Priority
Notes
10.00%, 3/15/05 250,000 267
Safelite Glass, Sr. Sub. Notes,
9.875%, 12/15/06 200,000 10
Shoppers Food Warehouse, Sr. Notes,
9.75%, 6/15/04 1,000,000 1,060
Six Flags Entertainment, Sr. Notes,
8.875%, 4/1/06 350,000 339
Smithfield Foods, Sr. Sub. Notes,
7.625%, 2/15/08 500,000 451
Sprint, 6.125%, 11/15/08 1,700,000 1,567
24
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Stena, Sr. Notes, 10.50%, 12/15/05 $ 400,000 $ 372
Synthetic Industries, Sr. Sub. Notes,
9.25%, 2/15/07 350,000 376
Union Planters Trust Capital, Gtd. Bonds,
8.20%, 12/15/26 3,550,000 3,263
United Air Lines, 9.20%, 3/22/08 206,846 220
United International Holdings, Sr. Disc.
Notes, STEP
10.75%, 2/15/08 850,000 533
US Can, Sr. Gtd. Notes, 10.125%, 10/15/06 250,000 255
Venture Holdings Trust, Sr. Notes, (144a),
11.00%, 6/1/07 575,000 558
Verio, Sr. Notes, 10.375%, 4/1/05 225,000 226
Voicestream Wire, Sr. Notes, (144a),
10.375%, 11/15/09 1,000,000 1,042
Westamerica Bank, Sub. Notes, 6.99%, 9/30/03 250,000 240
Westinghouse Air Brake, Sr. Notes,
9.375%, 6/15/05 1,000,000 990
Westpoint Stevens, Sr. Notes, 7.875%, 6/15/08 1,000,000 935
-------------
Total Corporate Bonds (Cost $84,741) 78,049
-------------
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 8.5%
Federal Home Loan Mortgage
6.00%, 2/15/11 - 11/1/25 6,617,768 6,264
6.50%, 10/1/08 - 3/15/11 3,439,435 3,322
7.00%, 10/1/08 - 10/1/25 78,652 77
7.50%, 12/1/99 50,000 50
8.00%, 1/1/25 59,227 60
9.00%, 11/1/04 12,747 13
Federal National Mortgage Assn.
6.50%, 3/1/09 - 8/1/23 151,957 148
7.00%, 4/18/22 - 1/1/26 3,165,430 3,154
7.50%, 11/1/07 74,130 75
8.00%, 5/1/07 - 6/1/10 58,399 60
8.50%, 8/1/06 - 11/1/21 33,696 35
9.00%, 5/1/01 11,621 12
REMIC, 8.00%, 2/25/07 66,372 67
Government National Mortgage Assn. I
6.00%, 5/15/17 - 12/15/23 2,456,990 2,292
6.50%, 12/15/23 - 2/15/29 8,074,983 7,697
7.00%, 4/15/24 - 1/15/29 20,928,069 20,545
7.50%, 2/15/16 - 5/15/29 4,579,739 4,576
8.00%, 3/15/22 - 8/15/24 508,148 517
25
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Government National Mortgage Assn. II
7.00%, 9/20/27 $ 2,174,349 $ 2,126
8.00%, 10/20/25 52,789 54
-------------
Total U.S. Government Mortgage-Backed
Securities (Cost $52,669) 51,144
-------------
U.S. GOVERNMENT OBLIGATIONS/
AGENCIES 14.6%
Federal Farm Credit
5.25%, 5/1/02 8,500,000 8,289
Federal Home Loan Bank
4.96%, 10/7/05 4,100,000 3,775
6.29%, 6/9/05 600,000 591
Federal Home Loan Mortgage
5.95%, 1/19/06 5,900,000 5,664
Federal National Mortgage Assn., REMIC
7.25%, 5/25/20 2,829,683 2,802
Government Trust Certificates
9.25%, 11/15/01 26,438 27
Resolution Funding
8.125%, 10/15/19 210,000 238
Tennessee Valley Authority
5.88%, 4/1/36 2,000,000 1,901
6.235%, 7/15/45 2,000,000 2,000
U.S. Treasury Bonds
6.125%, 11/15/27 5,650,000 5,381
6.75%, 8/15/26 13,050,000 13,420
U.S. Treasury Notes
4.75%, 11/15/08 22,000,000 19,756
4.875%, 3/31/01 19,350,000 19,086
6.50%, 5/15/05 5,000,000 5,062
-------------
Total U.S. Government Obligations/Agencies
(Cost $91,614) 87,992
-------------
SHORT-TERM INVESTMENTS 5.2%
Money Market Funds 5.2%
Reserve Investment Fund, 5.65% # 31,771,208 31,771
-------------
Total Short-Term Investments (Cost $31,771) 31,771
-------------
26
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
In thousands
Total Investments in Securities
99.3% of Net Assets (Cost $547,507) $ 599,726
Other Assets Less Liabilities 4,219
-------------
NET ASSETS $ 603,945
-------------
# Seven-day yield
* Non-income producing
ADR American Depository Receipt
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
STEP Stepped coupon note for which the interest rate will adjust on
specified future date(s)
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at period-end amounts to
1.1% of net assets.
AUD Australian dollar
CHF Swiss franc
DKK Danish krone
EUR Euro
GBP British sterling
HKD Hong Kong dollar
JPY Japanese yen
MYR Malaysian ringgit
NOK Norwegian krone
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
USD U.S. dollar
L Local registered shares
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Unaudited November 30, 1999
- -----------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value (cost $547,507) $ 599,726
Securities lending collateral 97,446
Other assets 5,707
-------------
Total assets 702,879
-------------
Liabilities
Obligation to return securities lending collateral 97,446
Other liabilities 1,488
-------------
Total liabilities 98,934
-------------
NET ASSETS $ 603,945
-------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 2,909
Accumulated net realized gain/loss - net of distributions 15,763
Net unrealized gain (loss) 52,216
Paid-in-capital applicable to 37,106,922 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares authorized 533,057
-------------
NET ASSETS $ 603,945
-------------
NET ASSET VALUE PER SHARE $ 16.28
-------------
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Unaudited
- -----------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
In thousands
6 Months
Ended
11/30/99
Investment Income
Income
Interest $ 8,547
Dividend 2,886
------------
Total income 11,433
------------
Expenses
Investment management 1,651
Shareholder servicing 967
Custody and accounting 94
Prospectus and shareholder reports 40
Legal and audit 8
Registration 6
Directors 3
Miscellaneous 2
------------
Total expenses 2,771
Expenses paid indirectly (4)
------------
Net expenses 2,767
------------
Net investment income 8,666
------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 8,836
Foreign currency transactions (11)
------------
Net realized gain (loss) 8,825
------------
Change in net unrealized gain or loss
Securities (7,054)
Other assets and liabilities
denominated in foreign currencies (1)
------------
Change in net unrealized gain or loss (7,055)
------------
Net realized and unrealized gain (loss) 1,770
------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 10,436
------------
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
11/30/99 5/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income $ 8,666 $ 12,772
Net realized gain (loss) 8,825 9,213
Change in net unrealized gain or loss (7,055) 14,567
---------------------------------
Increase (decrease) in net assets from
operations 10,436 36,552
---------------------------------
Distributions to shareholders
Net investment income (8,565) (11,763)
Net realized gain -- (12,214)
---------------------------------
Decrease in net assets from distributions (8,565) (23,977)
---------------------------------
Capital share transactions *
Shares sold 128,055 285,469
Distributions reinvested 8,509 23,845
Shares redeemed (64,181) (120,554)
---------------------------------
Increase (decrease) in net assets from
capital share transactions 72,383 188,760
---------------------------------
Net Assets
Increase (decrease) during period 74,254 201,335
Beginning of period 529,691 328,356
---------------------------------
End of period $ 603,945 $ 529,691
---------------------------------
* Share information
Shares sold 7,835 18,147
Distributions reinvested 531 1,530
Shares redeemed (3,954) (7,655)
---------------------------------
Increase (decrease) in shares outstanding 4,412 12,022
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
Unaudited November 30, 1999
- -----------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Personal Strategy Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The Personal Strategy Balanced Fund
(the fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on July 29,
1994.
The accompanying financial statements are prepared in accordance with generally
accepted accounting principles for the investment company industry; these
principles may require the use of estimates by fund management.
Valuation Equity securities listed or regularly traded on a securities exchange
are valued at the last quoted sales price on the day the valuations are made. A
security which is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such security.
Listed securities not traded on a particular day and securities regularly traded
in the over-the-counter market are valued at the mean of the latest bid and
asked prices. Other equity securities are valued at a price within the limits of
the latest bid and asked prices deemed by the Board of Directors, or by persons
delegated by the Board, best to reflect fair value.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Currency Translation Assets and liabilities are translated into U.S. dollars at
the prevailing exchange rate at the end of the reporting period. Purchases and
sales of securities and income and expenses are translated into U.S. dollars at
the
31
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
- --------------------------------------------------------------------------------
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, which 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.
Although risk is mitigated by the collateral, the fund could experience a delay
in recovering its securities and a possible loss of income or value if the
borrower fails to return them. At November 30, 1999, the value of loaned
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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securities was $94,121,000; aggregate collateral consisted of $97,446,000 in the
securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term and
U.S. government securities, aggregated $92,651,000 and $63,676,000,
respectively, for the six months ended November 30, 1999. Purchases and sales of
U.S. government securities aggregated $46,014,000 and $27,751,000, respectively,
for the six months ended November 30, 1999.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income.
At November 30, 1999, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled $547,507,000.
Net unrealized gain aggregated $52,219,000 at period-end, of which $88,241,000
related to appreciated investments and $36,022,000 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 $284,000 was payable at November 30, 1999. 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
November 30, 1999, and for the six months then ended, the effective annual group
fee rate was 0.32%. The fund pays a pro-rata share of the group fee based on the
ratio of its net assets to those of the group.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of the fund. T. Rowe Price Services, Inc. is the fund's
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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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 $918,000 for the six months
ended November 30, 1999, of which $167,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the six months ended November 30, 1999, totaled
$646,000 and are reflected as interest income in the accompanying Statement of
Operations.
34
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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(R) 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 markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* 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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T. ROWE PRICE MUTUAL FUNDS
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STOCK FUNDS
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Bond
International Bond
MONEY MARKET FUNDS+
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD VARIABLE ANNUITY
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced
Portfolio
Prime Reserve Portfolio
* Closed to new investors.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the funds.
Please call for a prospectus. Read it carefully before investing.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY. T.
Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
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T. ROWE PRICE RETIREMENT PLANS AND RESOURCES
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RETIREMENT PLANS AND RESOURCES
We recognize that saving for retirement is the number one investment goal for
most Americans. We can help you meet your retirement needs, whether you are
starting an IRA or designing a retirement program for your employees. T. Rowe
Price offers an assortment of retirement plans for individuals, the self-
employed, small businesses, corporations, and nonprofit organizations. We
provide recordkeeping, communications, and investment management services, as
well as a variety of educational materials, self-help planning guides, and
software tools to help you choose and implement a retirement plan appropriate
for you. For information or to request literature, call us at 1-800-638-5660.
IRAs AND QUALIFIED PLANS
Traditional IRA Money Purchase Pension
Roth IRA "Paired" Plans (Money Purchase
Rollover IRA Pension and Profit Sharing Plans)
SEP-IRA 401(k)
SIMPLE IRA 403(b)
Profit Sharing 457 Deferred Compensation
RETIREMENT RESOURCES AT T. ROWE PRICE
Planning and Informational Guides Investing for Retirement in Your
403(b) Account
Minimum Required Distributions Guide The T. Rowe Price No-Load Variable
Retirement Planning Kit Annuity Information Kit
Retirees Financial Guide
Tax Considerations for Investors Insights Reports
Investment Kits The Challenge of Preparing for
Retirement
The IRA Investing Kit Financial Planning After Retirement
Roth IRA Conversion Kit The Roth IRA: A Review
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit Software Packages
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh Plan(R) From T. Rowe Price Retirement Planning
T. Rowe Price Analyzer(TM) CD-ROM or diskette
The T. Rowe Price 401(k) Century $19.95. To order, please call
Plan(R) (for small businesses) 1-800-541-5760. Also available
Money Purchase Pension/Profit Sharing on the Internet for $9.95.
Plan Kit T. Rowe Price Variable Annuity
AnalyzerTM CD-ROM or diskette,
free. To order, please call
1-800-469-5304.
Many of these resources are also available for viewing or ordering on the
Internet at www.troweprice.com.
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<PAGE>
T. ROWE PRICE INSIGHTS REPORTS
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THE FUNDAMENTALS OF INVESTING
Whether you are unsure how to get started or are saving for a specific goal,
such as retirement or college, the T. Rowe Price Insights series can help you
make informed investment decisions. These reports, written in plain English
about fundamental investment topics, can be useful at every stage of your
investment journey. They cover a range of topics, from the basic, such as
getting started with mutual funds, to the more advanced, such as managing risk
through diversification or buying individual securities through a broker. To
request one or more Insights, call us at 1-800-638-5660.
INSIGHTS REPORTS
General Information Investing in Common Stocks
Investing in Emerging Growth
The ABCs of Giving Stocks
Back to Basics: The ABCs of Investing in Financial Services
Investing Stocks
The Challenge of Preparing for Investing in Health Care Stocks
Retirement Investing in High-Yield Municipal
Financial Planning After Bonds
Retirement Investing in Money Market
Getting Started: Investing With Securities
Mutual Funds Investing in Mortgage-Backed
The Roth IRA: A Review Securities
Tax Information for Mutual Fund Investing in Natural Resource
Investors Stocks
Investing in Science and
Investment Strategies Technology Stocks
Investing in Small-Company Stocks
Conservative Stock Investing Understanding Derivatives
Dollar Cost Averaging Understanding High-Yield "Junk"
Equity Index Investing Bonds
Growth Stock Investing
Investing for Higher Yield Brokerage Insights
Managing Risk Through
Diversification Combining Individual Securities
The Power of Compounding With Mutual Funds
Value Investing Getting Started: An Introduction
to Individual Securities
Types of Securities What You Should Know About Bonds
What You Should Know About Margin
The Basics of International Stock and Short-Selling
Investing What You Should Know About Options
The Basics of Tax-Free Investing What You Should Know About Stocks
The Fundamentals of Fixed Income
Investing
Global Bond Investing
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
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T. ROWE PRICE BROKERAGE
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BROKERAGE SERVICES
T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
T. Rowe Price Brokerage provides high-quality services and financial tools you
can use to manage your investments effectively and conveniently. We also offer
significant commission savings over full-service brokerages on a wide range of
individual securities and other investments.*
Internet and Automated Services You can enter trades, access quotes, and review
account information 24 hours a day, seven days a week, by telephone or computer.
We offer a flat-rate commission of $24.95 on stock trades placed through our
Internet-Trader service.**
Research Services To help you make informed investment decisions, we offer
access to several sources of data. You can research your investments using our
Online Research & News Service, provided by Thomson Investors Network, which
includes company profiles, intra-day and 12-month interactive charting, and
analysts' ratings and earnings estimates. Using our Research On Call service,
you can request reports from Standard & Poor's, Vicker's, Lipper, and other
well-known research providers to be delivered by fax or by mail.
Dividend Reinvestment Service This service helps keep more of your money working
for you. Cash dividends (of $10 or greater) from your eligible securities will
be invested automatically in additional shares of the same company, free of
charge. Most stocks listed on national securities exchanges or Nasdaq are
eligible for this service.
* Based on a September 1999 survey for representative-assisted stock trades.
Services vary by firm, and commissions may vary depending on size of order.
** $24.95 per trade for up to 1,000 shares plus an additional $.02 for each
share over 1,000 shares. Visit our Web site for a complete commission
schedule or call for rates on representative-assisted and other non-Internet
trades.
39
<PAGE>
For fund and account information or to conduct transactions, 24 hours, 7 days a
week By touch-tone telephone Tele*Access 1-800-638-2587 By Account Access on the
Internet www.troweprice.com/access
For assistance with your existing fund account, call:
Shareholder Service Center 1-800-225-5132
To open a brokerage account or obtain information, call:
1-800-638-5660
Internet address:
www.troweprice.com
Plan Account Lines for retirement plan participants:
The appropriate 800 number appears on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus appropriate to the fund or funds
covered in this report.
Walk-In Investor Centers:
For directions, call 1-800-225-5132 or visit our Web site
Baltimore Area
Downtown
101 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
Colorado Springs
4410 ArrowsWest Drive
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor. C11-059 11/30/99
