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Previous: CAPITAL ONE MASTER TRUST, 8-K, EX-20.18, 2001-01-16 |
Next: PRICE T ROWE PERSONAL STRATEGY FUNDS INC, N-30D, 2001-01-16 |
<PAGE>
--------------------------------------------------------------------------------
Semiannual Report - Financial Statements
--------------------------------------------------------------------------------
T. ROWE PRICE
PERSONAL STRATEGY
INCOME FUND
-----------------
NOVEMBER 30, 2000
-----------------
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Unaudited November 30, 2000
---------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
11/30/00 5/31/00 5/31/99 5/31/98 5/31/97 5/31/96
NET ASSET VALUE
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $ 13.00 $ 13.35 $ 13.13 $ 11.98 $ 11.85 $ 10.94
Investment activities
Net investment
income (loss) 0.27* 0.54* 0.51* 0.50* 0.51* 0.50*
Net realized and
unrealized gain (loss) 0.05 0.02 0.31 1.43 1.10 0.98
Total from investment
activities 0.32 0.56 0.82 1.93 1.61 1.48
Distributions
Net investment income (0.27) (0.54) (0.50) (0.50) (0.50) (0.47)
Net realized gain - (0.37) (0.10) (0.28) (0.98) (0.10)
Total distributions (0.27) (0.91) (0.60) (0.78) (1.48) (0.57)
NET ASSET VALUE
End of period $ 13.05 $ 13.00 $ 13.35 $ 13.13 $ 11.98 $ 11.85
=============================================================
Ratios/Supplemental Data
Total return++ 2.46%* 4.39%* 6.43%* 16.61%* 14.70%* 13.84%*
Ratio of total expenses to
average net assets 0.90%+* 0.90%* 0.90%* 0.95%* 0.95%* 0.95%*
Ratio of net investment
income (loss) to average
net assets 4.07%+* 4.06%* 3.91%* 4.13%* 4.38%* 4.31%*
Portfolio turnover rate 72.7%+ 45.4% 48.9% 30.9% 44.8% 34.1%
Net assets, end of period
(in thousands) $221,229 $198,885 $208,208 $ 85,898 $ 44,368 $ 25,545
</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 0.90% voluntary expense limitation in effect
through 5/31/02 and expenses in excess of a 0.95% 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 INCOME FUND
--------------------------------------------------------------------------------
Unaudited November 30, 2000
-------------------------
PORTFOLIO OF INVESTMENTS Shares/Par Value
--------------------------------------------------------------------------------
In thousands
COMMON STOCKS 39.0%
FINANCIAL 7.2%
Bank and Trust 2.8%
Abbey National (GBP) 17,300 $ 273
ABN Amro Holding (EUR) 4,300 90
Allied Irish Banks (EUR) 7,700 84
Australia & New Zealand Banking Group (AUD) 600 5
Australia & New Zealand Banking Group ADR 2,500 98
Banca Commerciale Italiana (EUR) 14,800 92
Banca Intesa (EUR) 25,900 113
Banca Popolare di Milano (EUR) 1,900 12
Banco Bradesco ADR 12,300 85
Banco de Bilbao Vizcaya Argentaria ADR 15,600 207
Banco Frances del Rio de la Plata ADR 4,635 90
Banco Santiago ADR 5,800 116
Bank of America 9,400 375
Bank of New York 6,200 342
Bank One 9,600 344
Bankgesellschaft Berlin (EUR) 3,200 42
Barclays Group (GBP) 6,800 191
BNP Paribas (EUR) 800 62
Charter One Financial 1,465 35
Chase Manhattan 5,500 203
Chittenden 5,000 134
Citizens Banking 2,900 68
Commonwealth Bank of Australia (AUD) 7,400 123
Downey Financial 5,100 232
Dresdner Bank (EUR) 5,700 210
DSB Group Holdings (SGD) 8,978 102
First Bell Bancorp 600 8
First Mariner Bancorp 600 3
Firstar 2,700 52
Frankfort First Bancorp 300 4
Glacier Bancorp 3,010 35
KBC Bancassurance Holding (EUR) 1,400 55
Marshall & Ilsley 200 9
3
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Mellon Financial 17,700 $ 830
Overseas Chinese Bank (SGD) 11,400 77
Societe Generale (EUR) 540 29
Southwest Bancorp * 4,400 157
State Street 2,300 297
Sumitomo Bank (JPY) 19,000 189
Summit Bancorp 900 33
Svenska Handelsbanken (Series A) (SEK) 6,900 110
UniCredito Italiano (EUR) 25,800 129
Valley National Bancorp 4,400 128
Wells Fargo 5,800 275
Westamerica 3,700 126
-------------
6,274
-------------
Insurance 1.9%
ACE Limited 7,000 276
Aegon (EUR) 2,400 99
American General 3,800 285
American International Group 1,459 141
AMP Limited (AUD) 4,200 42
Brown and Brown 4,800 152
Harleysville Group 1,200 30
Hartford Financial Services Group 700 50
Istituto Nazionale delle Assicurazioni (EUR) * 26,482 76
London Pacific Group ADR 3,600 42
Marsh & McLennan 2,500 288
PartnerRe Holdings 2,800 148
Selective Insurance 1,000 20
St. Paul 11,900 596
Sumitomo Marine & Fire Insurance (JPY) 35,000 234
Swiss Re 86 191
UNUM Provident 24,700 667
W. R. Berkley 1,400 50
XL Capital (Class A) 9,400 750
-------------
4,137
-------------
Financial Services 2.5%
American Express 9,300 511
Amvescap (GBP) 7,300 117
Associates First Capital (Class A) 2,900 102
4
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
AXA (EUR) 1,000 $ 140
Banacci (MXN) 138,000 190
Capital One Financial 4,100 229
Charles Schwab 1,800 50
Citigroup 15,964 795
Credit Lyonnais (EUR) 800 27
Delta Financial * 2,200 1
Fannie Mae 15,700 1,240
Financial Federal * 1,400 33
Freddie Mac 11,500 695
GIMV (EUR) 1,000 40
Goldman Sachs Group 700 57
HSBC Holdings (GBP) 24,126 318
ING Groep (EUR) 3,150 227
ITLA Capital * 1,700 25
Morgan Stanley Dean Witter 2,800 177
Nomura Securities (JPY) 6,000 126
Pearson (GBP) 4,800 106
Providian Financial 2,200 198
Stilwell Financial 3,900 127
5,531
--------------
Total Financial 15,942
--------------
UTILITIES 2.6%
Telephone 1.6%
AT&T 5,375 106
AT&T Liberty Media (Class A) * 5,400 73
BellSouth 5,400 226
British Telecom ADR 1,200 103
KPN (EUR) 3,013 41
Nextel Communications (Class A) * 2,300 71
Nippon Telegraph & Telephone (JPY) 35 301
Portugal Telecom (EUR) 4,200 34
Rural Cellular (Class A) * 500 18
SBC Communications 9,800 538
Sprint 7,600 175
Sprint PCS * 1,800 41
5
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Swisscom (CHF) 190 $ 45
Tele Danmark (DKK) 300 12
Telebras ADR 2,200 127
Telecom Corp. of New Zealand 7,000 16
Telecom Corp. of New Zealand ADR 600 11
Telecom Italia (EUR) 15,300 177
Telecom Italia Mobile (EUR) 27,700 219
Telefonica ADR * 3,905 185
Telefonos de Mexico (Telmex) (Class L) ADR 7,700 361
Vodafone PLC 15,250 522
Western Wireless * 800 32
WorldCom * 1,381 21
XO Communications * 1,600 24
3,479
Electric Utilities 0.9%
Cleco 4,300 201
E.On (EUR) 2,910 165
Electrobras 9,000 75
Empresa Nacional de Electricidad Chile ADR * 9,132 92
Exelon 8,587 569
FirstEnergy 7,595 224
GPU 2,000 70
Hong Kong Electric Holdings (HKD) 14,000 48
Iberdrola (EUR) 11,800 141
National Grid Group (GBP) 4,600 40
Powergen (GBP) 5,500 45
Sony (JPY) 2,500 189
TXU 6,600 264
Unisource Energy 700 10
2,133
Water Utilities 0.1%
Suez Lyonnaise des Eaux (EUR) 1,200 203
203
Total Utilities 5,815
6
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
CONSUMER NONDURABLES 7.5%
Cosmetics 0.4%
Chattem * 1,500 $ 7
Gillette 9,000 305
International Flavors & Fragrances 19,100 357
Kao (JPY) 4,000 123
792
Beverages 0.6%
Anheuser-Busch 11,400 541
Coca-Cola 4,600 288
Diageo ADR 2,950 123
Femsa UBD, Units
(Represents 1 Series B and 4 Series D shares) (MXN) 25,400 88
LVMH (EUR) 955 63
PepsiCo 6,000 272
1,375
Food Processing 1.1%
American Italian Pasta * 1,800 41
Associated British Foods (GBP) 18,100 124
Cadbury Schweppes (GBP) 8,300 58
Cadbury Schweppes ADR 3,000 86
Campbell 11,200 374
Carrefour (EUR) 3,500 211
Casino Guich-Perrachon (EUR) 500 48
Danisco (DKK) 200 8
Eridania Beghin-Say (EUR) 540 54
G.I.B. Group (EUR) 1,300 54
General Mills 11,820 486
International Multifoods 5,800 112
Nestle (CHF) 89 193
Quaker Oats 300 26
Ralston Purina 14,100 371
Sara Lee 5,200 125
Seneca Foods (Class A) * 800 10
Seneca Foods (Class B) * 700 9
Unilever 2,617 162
2,552
7
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Hospital Supplies/Hospital Management 0.5%
Airgas * 3,700 $ 28
Allergan 600 56
Baxter International * 3,800 329
Cephalon * 1,581 73
Guidant * 100 5
Hooper Holmes 3,900 39
Lincare Holdings * 3,000 132
Mentor 5,800 105
Molecular Devices * 900 44
Renal Care Group * 2,150 47
Smith & Nephew (GBP) 26,272 119
Steris * 2,700 40
Terumo (JPY) 4,000 79
1,096
Pharmaceuticals 2.7%
American Home Products 25,260 1,519
Amgen * 1,500 95
Arena Pharmaceuticals * 300 6
AstraZeneca Group (GBP) 3,500 179
AstraZeneca Group ADR 4,600 237
Aurora Biosciences * 800 26
Genetech * 2,300 157
Glaxo Wellcome ADR 5,100 292
IDEC Pharmaceuticals * 400 70
Immunex * 1,000 37
Incyte Genomics * 600 16
Johnson & Johnson 2,500 250
MedImmune * 2,300 122
Merck 2,600 241
Novartis (CHF) 331 537
Noven Pharmaceuticals * 300 8
Novo Nordisk (DKK) 100 19
NPS Pharmaceuticals * 1,100 43
Pfizer 24,885 1,103
Pharmacia 6,926 422
Schering-Plough 4,500 252
Syngenta (CHF) * 82 3
8
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Syngenta (London Exchange) (GBP) * 86 $ 4
Takeda Chemical Industries (JPY) 4,000 247
Triangle Pharmaceuticals * 2,400 13
5,898
Biotechnology 0.1%
Abgenix * 400 20
Alkermes * 1,200 36
COR Therapeutics * 1,400 50
Cubist Pharmaceuticals * 400 13
Deltagen * 200 2
Eden Bioscience * 300 11
Edwards Lifesciences * 2,300 37
Gilead Sciences * 200 16
Inhale Therapeutic Systems * 2,800 109
Neose Technologies * 100 3
Neurocrine Biosciences * 600 17
Serologicals * 2,000 19
Viropharma * 400 6
339
Health Care Services 0.4%
AmeriPath * 4,300 71
Boron Lepore & Associates * 600 6
CIGNA 1,500 198
Orthodontic Centers of America * 1,500 45
Packard BioScience * 400 4
UnitedHealth Group 2,800 328
Wellpoint Health Networks * 1,500 162
Wilson Greatbatch Technologies * 2,000 48
862
Miscellaneous Consumer Products 1.7%
Bridgestone (JPY) 2,000 25
Coach * 500 11
Colgate-Palmolive 9,700 570
Cone Mills * 4,600 15
Culp 1,700 5
Dan River * 4,600 10
Electrolux (Class B) (SEK) 1,900 26
Energizer Holdings * 4,366 84
9
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Harcourt General 7,600 $ 420
Koninklijke Philips Electronics ADR 5,027 165
Lion Nathan (NZD) 20,000 44
Mattel 23,900 302
Mitsui (JPY) 25,000 155
Newell Rubbermaid 8,100 157
Nintendo (JPY) 1,000 150
Philip Morris 23,450 895
Polymer Group 1,800 10
QuickSilver * 1,500 31
Reebok International * 1,500 32
Sola Internatioanl * 6,000 22
Stride Rite 4,800 29
Tomkins (GBP) 23,700 50
Unifi * 2,700 23
UST 14,200 337
Wacoal (JPY) 5,000 45
WestPoint Stevens 2,100 13
Yue Yuen Industrial (HKD) 44,000 85
3,711
Total Consumer Nondurables 16,625
CONSUMER SERVICES 3.5%
Restaurants 0.1%
Applebee's 1,400 46
Buca * 4,000 63
PJ America * 1,200 9
Ruby Tuesday 3,000 46
Uno Restaurant * 2,200 18
182
General Merchandisers 0.5%
Bon-Ton Stores * 5,300 15
Casey's General Stores 8,400 98
Columbia Sportswear * 1,800 74
Marui (JPY) 3,000 39
Neiman Marcus Group * 2,800 84
Target 4,500 135
10
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Tesco (GBP) 63,821 $ 258
Wal-Mart 5,800 303
Wal-Mart de Mexico (MXN) * 42,300 92
1,098
Specialty Merchandisers 1.2%
Albertson's 12,800 327
CVS 4,768 271
Home Depot 4,800 188
Kroger * 8,200 217
Loew's 400 16
Nordstrom 15,000 241
O' Charley's * 5,300 92
PurchasePro.com * 1,600 22
Safeway * 7,000 413
Toys "R" Us * 26,700 506
Tupperware 19,300 352
Urban Outfitters * 1,800 14
Wild Oats Markets * 1,400 6
2,665
Entertainment and Leisure 0.8%
Disney * 25,800 746
Houghton Mifflin 1,900 70
Hutchison Whampoa (HKD) 29,300 350
MGM Grand 2,400 69
Papa John's International * 2,400 64
Sharp (JPY) 3,000 36
Sonic * 1,100 43
Viacom (Class B) * 7,201 368
1,746
Media and Communications 0.8%
American Tower (Class A) * 400 12
Asatsu 2,000 51
Classic Communications (Class A) * 1,700 6
Clear Channel Communications * 4,300 217
Comcast (Class A Special) * 1,600 62
Crown Castle International * 2,100 50
Elsevier (EUR) 2,400 31
Emmis Broadcasting (Class A) * 2,300 54
11
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Infinity Broadcasting (Class A) * 5,300 $ 161
McGraw-Hill 1,700 90
Mediaset (EUR) 7,300 95
News Corporation ADR 2,300 80
Pegasus Communications * 800 21
Publishing & Broadcasting (AUD) 13,000 87
R.R. Donnelley 32,400 725
Sinclair Broadcast Group (Class A) * 5,600 49
Young Broadcasting (Class A) * 1,400 38
1,829
Printing and Publishing 0.1%
Reed International (GBP) 16,200 145
145
Total Consumer Services 7,665
CONSUMER CYCLICALS 2.0%
Automobiles and Related 0.4%
A.O. Smith (Class B) 6,350 106
Cycle & Carriage (SGD) 4,000 8
DaimlerChrysler (EUR) 1,400 54
Fiat (EUR) 1,000 24
Honda Motor (JPY) 1,000 35
Honda Motor ADR 1,300 90
Keystone Automotive * 1,500 8
Littelfuse * 4,400 113
Peugeot (EUR) 866 179
Strattec Security * 1,000 33
Volkswagen (EUR) 2,400 119
Volvo (Class B) (SEK) 700 10
779
Building and Real Estate 1.2%
Apartment Investment & Management, REIT 800 37
Arden Realty, REIT 3,600 88
Capitaland (SGD) * 11,000 18
Cemex, Participating Certificates
(Represents 2 Series A and 1 Series B shares) (MXN) 22,128 88
Cheung Kong Holdings (HKD) 17,000 191
12
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
City Developments (SGD) 4,000 $ 18
EastGroup Properties, REIT 4,200 83
Federal Realty Investment Trust, REIT 19,400 373
First Washington Realty Trust, REIT 1,600 41
Glenborough Realty Trust, REIT 2,600 40
JP Realty, REIT 3,300 51
Parkway Properties, REIT 3,700 103
Reckson Associates Realty (Class B), REIT 1,471 35
Reckson Associates Realty, REIT 19,200 450
RMC (GBP) 3,000 24
Simco (EUR) 500 31
Simon Property Group, REIT 16,668 382
Singapore Land (SGD) 8,000 16
Slough Estates (GBP) 12,800 71
Starwood Hotels & Resorts Worldwide, REIT 15,100 483
Westfield Trust (AUD) 44,000 74
Woodhead Industries 3,300 72
2,769
Miscellaneous Consumer Durables 0.4%
CompX 2,300 28
Eastman Kodak 13,300 559
Harman 5,800 212
Intranet Solutions * 1,200 44
OCE (EUR) 400 6
849
--------------
Total Consumer Cyclicals 4,397
--------------
TECHNOLOGY 3.6%
Electronic Components 1.0%
Altera * 5,000 120
American Superconductor * 800 19
Analog Devices * 2,900 144
Analogic 2,100 73
Artesyn Technologies * 3,100 106
ASM Lithography Holding (EUR) 600 13
ATMI * 2,200 34
Benchmark Electronics * 2,200 63
13
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
EMC * 2,200 $ 164
Epcos (EUR) * 100 8
Exar * 1,800 45
Flextronics International * 6,900 173
Intel 6,900 263
Kyocera (JPY) 1,000 131
LSI Logic * 3,600 65
Maxim Integrated Products * 2,700 138
Methode Electronics (Class A) 3,300 68
MKS Instruments * 100 1
Motorola 2,000 40
PMC-Sierra * 600 55
QLogic * 600 49
QuickLogic * 2,500 17
Sez Holding (CHF) 38 22
SIPEX * 1,800 46
Spirent (GBP) 13,200 96
Texas Instruments 3,900 145
Xilinx * 2,300 90
2,188
Electronic Systems 0.5%
Agilent Technologies * 700 36
Applied Biosystems Group 1,000 83
Applied Materials * 3,700 150
Applied Micro Circuits * 1,200 58
Armor Holdings * 5,600 89
Black Box * 2,000 112
Hewlett-Packard 2,900 92
KLA-Tencor * 1,800 49
Lifeline Systems * 2,000 26
Lo-Jack * 3,400 25
Solectron * 4,200 118
STMicroelectronics (EUR) 2,200 93
Waters * 3,800 244
1,175
Information Processing 0.2%
Dell Computer * 7,900 152
F. Y. I. * 3,000 88
14
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Hitachi (JPY) 6,000 $ 57
Hitachi ADR 1,900 180
--------------
477
--------------
Office Automation 0.0%
Technitrol 1,600 60
--------------
60
--------------
Specialized Computer 0.1%
Activision * 1,100 12
Sun Microsystems * 1,800 137
Symbol Technologies 300 12
Virata * 400 5
--------------
166
--------------
Aerospace and Defense 0.1%
DONCASTERS ADR * 600 10
Harsco 3,100 66
United Technologies 800 56
Woodward Governor 1,000 38
--------------
170
--------------
Telecommunications 1.7%
Airgate PCS * 400 9
Airnet Communications * 200 2
Alcatel (EUR) 3,370 167
Avaya * 500 6
China Mobile (Hong Kong) ADR * 1,700 45
Cisco Systems * 14,300 684
Corning 9,000 526
Deutsche Telekom (EUR) 7,800 245
Ditech Communications * 600 9
Eircom (EUR) 6,300 14
France Telecom ADR 2,500 213
Harmonic Lightwaves * 2,900 22
JDS Uniphase * 700 35
LM Ericsson (Class B) ADR 21,700 248
Lucent Technologies 6,000 93
Marconi (GBP) 6,600 62
Nokia ADR 16,900 722
Nortel Networks 5,100 193
Pacific Century CyberWorks ADR 2,457 14
15
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Peco II * 1,100 $ 16
QUALCOMM * 200 16
SDL * 900 164
Singapore Telecommunications (SGD) 50,000 83
Sonera Group (EUR) 2,800 54
Tellabs * 700 37
Telstra (AUD) 23,500 77
Vyyo * 600 5
West TeleServices * 1,700 45
--------------
3,806
--------------
Total Technology 8,042
--------------
EDUCATION 0.0%
ITT Educational Service * 300 6
Societe BIC 800 29
--------------
Total Education 35
--------------
CAPITAL EQUIPMENT 1.1%
Electrical Equipment 0.8%
ABB (CHF) 1,353 123
Bang & Olufsen (Class B) (DKK) 1,300 56
Canon (JPY) 4,000 157
GE 14,500 719
Getronics (EUR) 1,200 6
hi/fn * 1,100 36
LSI Industries 2,800 59
Matsushita Electric Industrial (JPY) 9,000 225
Mitsubishi Electric (JPY) 18,000 117
Tyco International 5,494 290
--------------
1,788
--------------
Machinery 0.3%
Actuant 5,700 21
Alstom (EUR) 1,700 40
Brooks Automation * 1,300 29
Danaher 3,600 235
Deere 3,500 142
16
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
GKN (GBP) 3,000 $ 33
NN Ball & Roller 1,700 14
Saurer (CHF) * 66 29
543
--------------
Total Capital Equipment 2,331
--------------
BUSINESS SERVICES AND TRANSPORTATION 3.5%
Computer Service and Software 1.5%
724 Solutions * 100 2
Actuate * 800 16
America Online * 9,500 386
Analysts International 2,900 15
Ariba * 1,300 81
Automatic Data Processing 4,600 304
BISYS Group * 2,400 103
Cambridge Partners * 1,400 3
Concord Communications * 1,000 6
Digital Impact * 2,400 7
Electronic Arts * 600 21
First Data 5,518 282
Fujitsu (JPY) 7,000 112
Genomica * 100 1
Great Plains Software * 800 37
IGate Capital * 1,900 8
Interact Commerce * 1,300 10
Intuit * 1,500 68
Jack Henry & Associates 300 16
Juniper Networks * 700 87
Keynote Systems * 1,300 24
Loislaw.com * 700 1
Macromedia * 700 45
Microsoft * 10,700 614
net.Genesis * 1,500 5
NetIQ * 1,100 88
Oracle * 11,700 310
Packeteer 1,000 13
Peregrine Systems * 1,400 23
17
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Pixelworks 500 $ 12
Progress Software * 7,700 99
PSINet * 2,070 2
Quest Software * 300 8
Register.com * 600 4
SAP (EUR) 800 84
Sema (GBP) 1,900 8
Siebel Systems * 2,000 140
Softbank (JPY) 700 37
Sonicwall * 500 8
SPSS * 1,400 22
SunGard Data Systems * 200 10
Telecommunication Systems * 100 1
USinternetworking * 3,900 11
Verisign * 200 17
VERITAS Software * 1,125 110
Verity * 1,000 15
WebTrends * 1,700 43
Zebra Technologies (Class A) * 800 33
--------------
3,352
--------------
Distribution Services 0.2%
MSC Industrial Direct * 2,200 34
Primesource 600 3
SCP Pool * 4,550 123
SunSource * 1,800 6
TNT Post Group (EUR) 900 21
United Stationers * 2,800 72
Watsco (Class A) 4,050 44
--------------
303
--------------
Environmental 0.1%
CUNO * 1,900 55
IT Group * 2,700 11
Rentokil Initial (GBP) 13,400 38
Waterlink * 2,600 1
--------------
105
--------------
Transportation Services 0.3%
Bergesen (Class A) (NOK) 3,200 55
C.H. Robinson Worldwide 1,100 62
18
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Comfort Systems USA * 3,300 $ 10
EGL * 1,750 60
Expeditors International of Washington 1,900 99
Heartland Express * 300 6
Hub Group (Class A) * 500 4
International Shipholding 700 5
Mitsubishi Heavy Industries (JPY) 71,000 310
Seacor Smit * 2,700 113
UTI Worldwide * 1,200 20
--------------
744
--------------
Miscellaneous Business Services 1.1%
AnswerThink * 1,800 10
British Airport Authorities (GBP) 5,300 45
Concord EFS * 200 9
Corio * 200 1
Electro Rent * 3,000 34
Exodus Communications * 1,300 30
G&K Services 2,100 57
H&R Block 15,700 552
Hays (GBP) 7,700 40
Herman Miller 1,200 28
Insituform Technologies (Class A) * 3,800 129
Iron Mountain * 3,600 119
Ivex Packaging * 4,100 36
Kforce.com * 2,600 12
Maximus * 4,000 113
McGrath RentCorp 1,400 25
MPW Industrial Services Group * 3,300 6
New England Business Service 4,700 74
Omnicom Group 2,400 189
Strayer Education 2,200 55
Tetra Tech * 3,762 132
Vedior (EUR) 1,700 19
Waste Management 33,306 797
--------------
2,512
--------------
Airlines 0.1%
Midwest Express Holdings * 2,500 39
Singapore Airlines (SGD) 11,400 110
--------------
149
--------------
19
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Railroads 0.2%
Norfolk Southern 30,900 $ 444
Railtrack Group (GBP) 4,000 54
--------------
498
--------------
Total Business Services and Transportation 7,663
--------------
ENERGY 3.8%
Energy Services 0.7%
Atwood Oceanics * 1,500 47
Baker Hughes 26,900 890
BJ Services * 1,100 59
Cooper Cameron * 500 27
Grant Prideco * 800 11
Hydril * 700 12
Johnson Electric Holdings (HKD) 162,000 304
Kansai Electric Power (JPY) 4,000 67
Smith International * 500 29
Tokyo Electric Power (JPY) 3,000 71
Weatherford International * 800 27
--------------
1,544
--------------
Exploration and Production 0.6%
Barrett Resources * 3,400 131
Chieftain International * 3,300 74
Cross Timbers Oil 5,550 110
Forest Oil * 5,100 63
Key Energy Services * 6,300 46
National Oilwell * 1,700 54
Noble Affiliates 2,900 108
Santos (EUR) 18,500 60
Unocal 19,100 652
--------------
1,298
--------------
Integrated Petroleum - Domestic 0.5%
Amerada Hess 1,200 74
Conoco (Class B) 7,069 177
USX-Marathon 28,000 738
--------------
989
--------------
20
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Integrated Petroleum - International 2.0%
BP Amoco ADR 29,902 $ 1,419
Chevron 3,400 278
ENI (EUR) 8,200 49
ENI SPA ADR 1,900 116
Exxon Mobil 12,593 1,108
Petroleo Brasileiro (Petrobras) ADR 6,800 163
Repsol 3,400 56
Royal Dutch Petroleum 9,200 549
Shell Transport & Trading ADR 2,900 138
Texaco 4,500 261
TotalFinaElf (Class B) (EUR) 1,711 245
TotalFinaElf ADR 374 27
4,409
Gas Transmission 0.0%
El Paso Energy 1,300 78
78
--------------
Total Energy 8,318
--------------
PROCESS INDUSTRIES 1.7%
Diversified Chemicals 0.5%
Arch Chemicals 4,500 81
Cabot Microelectronics * 900 33
Dow Chemical 12,700 388
DuPont 3,502 148
Hercules 19,300 367
--------------
1,017
--------------
Specialty Chemicals 0.7%
3M 5,400 539
Akzo Nobel (EUR) 600 28
BASF (EUR) 3,830 144
Great Lakes Chemical 9,440 330
Imperial Chemical ADR 1,000 27
MacDermid 300 6
Norsk Hydro (NOK) 2,200 88
Pall 17,300 345
Sumitomo Chemicals (JPY) 14,000 62
--------------
1,569
--------------
21
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Paper and Paper Products 0.3%
Buckeye Technologies * 3,200 $ 41
Jefferson Smurfit (GBP) 147 0
Kimberly-Clark 6,900 483
Kimberly-Clark de Mexico (Class A) (MXN) 36,100 90
Smurfit-Stone Container * 900 11
--------------
625
--------------
Forest Products 0.2%
Georgia-Pacific 6,636 167
Rio Tinto (GBP) 2,000 30
Weyerhaeuser 7,400 324
--------------
521
--------------
Building and Construction 0.0%
Dal-Tile International * 1,200 14
Eiffage (EUR) 700 35
Layne Christensen * 2,000 8
Simpson Manufacturing * 700 33
Trex * 400 9
U.S. Aggregates 1,900 17
--------------
116
--------------
Total Process Industries 3,848
--------------
BASIC MATERIALS 0.7%
Metals 0.6%
Alcoa 17,720 499
Gibraltar Steel 1,000 14
Material Sciences * 4,800 47
Matthews International (Class A) 4,700 136
Pechiney (EUR) 700 27
Phelps Dodge 13,300 653
--------------
1,376
--------------
Mining 0.1%
Battle Mountain Gold * 14,200 22
Lihir Gold (AUD) * 47,140 15
Rio Tinto (EUR) 8,400 116
Union Miniere (EUR) 1,500 53
--------------
206
--------------
22
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Miscellaneous Materials 0.0%
Malayan Cement (MYR) 15,750 $ 5
5
--------------
Total Basic Materials 1,587
--------------
MISCELLANEOUS 0.0%
Miscellaneous 0.0%
Syngenta ADR * 572 5
Other Miscellaneous Common Stocks 1,400 20
--------------
25
--------------
Conglomerates 0.0%
Orkla (Class A) (NOK) 1,000 18
18
--------------
Total Miscellaneous 43
--------------
FOREIGN 1.8%
Europe 1.0%
Aventis (EUR) 2,800 220
Bank of Scotland (GBP) 18,000 174
BG Group (GBP) 15,122 62
BNL (EUR) 7,100 22
Brembo (EUR) * 2,500 21
Cap Gemini (EUR) 300 41
Credit Suisse Group (CHF) 1,200 209
CSM (EUR) 1,200 30
Deutz (EUR) * 8,200 20
DnB Holding (NOK) 4,600 21
EM.TV (EUR) 500 8
Essilor International (EUR) 116 34
Fortis B (EUR) 1,900 56
Granada Compass (GBP) * 5,641 53
Ifil (EUR) 1,400 11
Lafarge (EUR) 400 30
Lattice Group (GBP) * 15,122 32
Merck KGaA (EUR) 2,200 86
Metro (EUR) 500 21
Munich Re (EUR) 1,000 325
23
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Nordic Baltic Holding (SEK) * 19,444 $ 139
Novozymes (B Shares) (DKK) * 100 2
OMV (EUR) 100 7
Prosegur Seguridad (EUR) 4,800 50
Publicis Groupe (EUR) 2,030 60
Radiometer (DKK) 800 20
Rolls Royce (GBP) 24,100 71
Sandvik (SEK) 1,400 30
Seat Pagine Gialle (EUR) * 856 2
Securitas (Class B) (SEK) 1,500 24
SGL Carbon (EUR) * 300 15
Sodexho Alliance (EUR) 500 90
Svenska Cellulosa (SEK) 3,100 61
Swatch (CHF) 132 31
Tullow Oil (EUR) * 114 0
--------------
2,078
--------------
Far East 0.6%
Advantest (JPY) 600 70
Asahi Breweries (JPY) 7,000 74
Ashikaga Bank (JPY) * 29,000 53
Daiei (JPY) * 14,000 28
Fujikura (JPY) 25,000 215
Maeda Road Construction (JPY) 16,000 68
Mitsubishi Chemical (JPY) 22,000 62
Mizuho Holdings (JPY) 34 220
Nissan Motor (JPY) * 23,000 140
Showa Shell Sekiyu (JPY) 4,000 20
Singapore Press Holdings (SGD) 6,000 93
Takashimaya (JPY) 6,000 43
Teijin (JPY) 19,000 88
Toho (JPY) 1,000 134
Yakult Honsha (JPY) 4,000 46
--------------
1,354
--------------
Other Foreign 0.2%
San Paolo IMI (EUR) 451 7
Siemens (EUR) 1,900 216
Unibanco GDR 3,300 73
24
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Valicert * 1,600 $ 11
Woolworths (AUD) 32,800 134
---------
441
---------
Total Foreign 3,873
---------
Total Common Stocks (Cost $80,721) 86,184
---------
CORPORATE BONDS 20.9%
Abitibi Consolidated, Sr. Notes, 8.55%, 8/1/10 $ 400,000 390
Acme Television, Sr. Notes, 10.875%, 9/30/04 75,000 66
AFC Enterprises, Sr. Sub. Notes, 10.25%, 5/15/07 200,000 184
Agrosy Gaming, Sr. Notes, 10.75%, 6/1/09 200,000 206
AIG Sunamerica Global Financing,
Sr. Notes, (144a) 7.60%, 6/15/05 + 600,000 620
Alaska Communications, Sr. Sub. Notes, 9.375%,5/15/09 200,000 164
Allied Holdings, Gtd. Sr. Sub. Notes, 8.625%, 10/1/07 250,000 193
American Builders & Contractors Supply,
Sr. Sub. Notes, 10.625%, 5/15/07 300,000 243
American Express, 7.60%, 8/15/02 300,000 302
American Standard, 9.25%, 12/1/16 40,000 39
Amerigas Partners, Sr. Notes, 10.125%, 4/15/07 100,000 99
Amkor Technology, Sr. Notes, 9.25%, 5/1/06 175,000 165
Associated Materials, Sr. Sub. Notes, 9.25%, 3/1/08 200,000 192
AT&T, Sr. Notes, 6.00%, 3/15/09 350,000 312
Avis Group Holdings, Sr. Sub. Notes, 11.00%, 5/1/09 250,000 267
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 500,000 332
Bally Total Fitness, Sr. Sub. Notes, 9.875%, 10/15/07 350,000 318
BBV International Finance, 7.00%, 12/1/25 1,000,000 876
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 200,000 182
California Special Purpose Trust, 6.42%, 9/25/08 600,000 598
Capital One Bank, Sr. Notes, 8.25%, 6/15/05 350,000 344
Capital One Master Trust, 7.90%, 10/15/10 400,000 407
Case Equipment Loan Trust, 5.83%, 2/15/05 509,983 505
CE Electric UK Funding, 6.853%, 12/30/04 + 1,850,000 1,798
Chancellor Media, Sr. Notes, 8.00%, 11/1/08 250,000 250
Charter Communications, Sr. Notes, 8.25%, 4/1/07 250,000 217
Chattem, Sr. Sub. Notes, 12.75%, 6/15/04 200,000 200
Cinemark USA, Sr. Sub. Notes, 8.50%, 8/1/08 250,000 155
25
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
CIT Equipment Collateral Trust, 6.93%, 7/20/11 $ 600,000 $ 605
CIT RV Trust, 6.09%, 2/15/12 800,000 794
CMS Energy, Sr. Notes, 9.875%, 10/15/07 250,000 257
Coinmach, Sr. Sub. Notes, 11.75%, 11/15/05 150,000 151
COMM 2000
7.416%, 4/15/10 400,000 403
7.494%, 4/15/10 325,000 333
Comstock Resources, 11.25%, 5/1/07 175,000 179
Consolidated Container, Sr. Sub. Notes, 10.125%, 7/15/09 300,000 258
Container Corp. of America
Sr. Notes, 9.75%, 4/1/03 100,000 100
Gtd. Notes, 10.75%, 5/1/02 100,000 101
Cott, Sr. Notes
8.50%, 5/1/07 100,000 93
9.375%, 7/1/05 100,000 97
Courtyard by Marriott II, Sr. Sec. Notes, 10.75%, 2/1/08 500,000 497
DaimlerChrysler Auto Trust, 6.66%, 1/8/05 700,000 704
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 200,000 140
Dealer Auto Receivables Trust, 7.12%, 3/15/05 600,000 609
Delta Air Lines, ETC, 10.00%, 5/17/10 146,000 153
Deutsche Telekom International, 8.00%, 6/15/10 400,000 405
Doane Pet Care, Sr. Sub. Notes, 9.75%, 5/15/07 300,000 216
Dobson Communications, 10.875%, 7/1/10 200,000 192
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 * 150,000 9
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 75,000 59
Energy, Sr. Sub. Notes, 9.50%, 5/15/07 100,000 78
Exodus Communications, Sr. Notes, 10.75%, 12/15/09 + 200,000 158
Fairfax Financial, 8.25%, 10/1/15 1,850,000 1,552
Flextronics International, (144a), 9.875%, 7/1/10 + 200,000 190
Focal Communications, 11.875%, 1/15/10 100,000 52
Ford Motor Credit, Sr. Notes, 5.80%, 1/12/09 600,000 530
Frontier Oil, 11.75%, 11/15/09 25,000 25
Frontiervision
Sr. Notes, 11.00%, 10/15/06 200,000 172
11.875%, 9/15/07 200,000 156
General Electric Capital, 7.50%, 5/15/05 1,000,000 1,041
Geophysique, Sr. Notes, 10.625%, (144a), 11/15/07 + 150,000 150
</TABLE>
26
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Shares/Par Value
-------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Global Crossing Holdings, Sr. Notes, 9.50%, 11/15/09 $ 300,000 $ 253
Global Imaging, Sr. Sub. Notes, 10.75%, 2/15/07 100,000 75
Goldman Sachs, Sr. Notes, 7.80%, 1/28/10 650,000 657
Harrahs, Sr. Sub. Notes, 7.875%, 12/15/05 250,000 243
Hawk, Sr. Notes, 10.25%, 12/1/03 300,000 285
Hercules, Sr. Notes, (144a), 11.125%, 11/15/07 + 125,000 119
Hewlett Packard, 7.15%, 6/15/05 400,000 406
Hexcel, Sr. Sub. Notes, 9.75%, 1/15/09 125,000 115
HMH Properties, Sr. Notes, 7.875%, 8/1/08 100,000 92
Hollinger International Publishing, Gtd. Notes
9.25%, 3/15/07 500,000 492
Insight Midwest, (144a), 10.50%, 11/1/10 + 500,000 497
Intermedia Communications of Florida, Sr. Disc. Notes
STEP, 0%, 7/15/07 250,000 200
International Cabletel, Sr. Notes, STEP, 0%, 2/1/06 100,000 86
International Game Technology, Sr. Notes, 8.375%, 5/15/09 500,000 487
International Wire, Sr. Sub. Notes, 11.75%, 6/1/05 200,000 196
Intertek Finance, Sr. Sub. Notes, 10.25%, 11/1/06 100,000 50
Isle of Capri Casinos, Sr. Sub. Notes, 8.75%, 4/15/09 125,000 106
ISP Holdings, Sr. Notes, 9.75%, 2/15/02 150,000 126
Jack in the Box, Sr. Sec. Notes, 9.75%, 11/1/03 75,000 75
Jitney-Jungle Stores, Sr. Sub. Notes, 12.00%, 3/1/06 * 350,000 5
JP Morgan Commercial Mortgage Finance, 7.680%, 8/15/32 400,000 410
KPN, Sr. Notes, (144a), 8.00%, 10/1/10 + 700,000 678
LB Commercial Conduit Mortgage Trust, 6.78%, 4/15/09 675,000 660
Lear, Sr. Notes, 7.96%, 5/15/05 125,000 117
Lehman Brothers Holdings, 7.875%, 8/15/10 450,000 446
Lennar, Sr. Notes, 9.95%, 5/1/10 200,000 198
LifePoint Hospitals, Sr. Sub. Notes, 10.75%, 5/15/09 100,000 104
Lockheed Martin, 8.20%, 12/1/09 800,000 855
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 250,000 233
MBNA, Sr. Notes, 7.75%, 9/15/05 350,000 344
McLeod USA, Sr. Disc. Notes, STEP, 0%, 3/1/07 100,000 77
Metromedia Fiber Network, Sr. Notes, 10.00%, 11/15/08 250,000 193
Metronet Communications, Sr. Disc. Notes
STEP, 0%, 6/15/08 350,000 280
Mohegan Tribal Gaming Authority, Sr. Notes, 8.125%, 1/1/06 200,000 195
Morgan Stanley Dean Witter, 7.75%, 6/15/05 300,000 308
</TABLE>
27
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Shares/Par Value
----------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Newport News Shipbuilding, Sr. Notes, 8.625%, 12/1/06 $ 250,000 $ 247
Nextel Communications, Sr. Disc. Notes
STEP, 0%, 10/31/07 900,000 621
Nextlink Communications, Sr. Disc. Notes
STEP, 0%, 6/1/09 425,000 142
Nissan Auto Receivables Owner Trust, 6.72%, 8/16/04 375,000 376
Northern Trust, 6.65%, 11/9/04 1,000,000 996
Northland Cable Television, Sr. Sub. Notes,
10.25%, 11/15/07 150,000 110
NTL Communications, (144a), 11.875%, 10/1/10 + 100,000 82
Ocean Energy, Sr. Sub. Notes, 8.375%, 7/1/08 200,000 199
Omnicare, 5.00%, 12/1/07 150,000 112
Orange, Sr. Notes, 9.00%, 6/1/09 500,000 515
Orion Power Holdings, Sr. Notes, (144a), 12.00%, 5/1/10 + 200,000 214
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 50,000 52
Packaging Corp. of America, Sr. Sub. Notes, 9.625%, 4/1/09 500,000 514
Pegasus Communications, Sr. Notes, 9.625%, 10/15/05 200,000 184
Premier Parks, Sr. Disc. Notes, STEP, 0%, 4/1/08 500,000 337
Price Communications Wireless, Sr. Notes
9.125%, 12/15/06 500,000 515
Pride Petroleum Services, Sr. Notes, 9.375%, 5/1/07 100,000 100
Principal Mutual, (144a), 8.00%, 3/1/44 + 850,000 749
Quest Diagnostics, Gtd. Sr. Sub. Notes, 10.75%, 12/15/06 150,000 159
Qwest Capital Funding,(144a), 7.90%, 8/15/10 + 775,000 788
Qwest Communications,
Sr. Disc. Notes, STEP, 0%, 10/15/07 600,000 540
Sr. Notes, 7.50%, 11/1/08 50,000 49
R & B Falcon, Sr. Notes, 6.95%, 4/15/08 500,000 462
Raytheon, Sr. Notes, 5.70%, 11/1/03 500,000 486
Rogers Cablesystems, Sr. Sec. 2nd Priority Notes
10.00%, 3/15/05 90,000 95
Safelite Glass, Sr. Sub. Notes, 9.875%, 12/15/06 * 50,000 0
Salomon Brothers Mortgage Securities VII, 7.455%, 4/18/10 325,000 335
Securitized Asset Sales, 7.41%, 9/25/24 450,000 445
Sinclair Broadcast Group, Sr. Sub. Notes, 8.75%, 12/15/07 100,000 86
Six Flags Entertainment, Sr. Notes, 8.875%, 4/1/06 500,000 462
Sprint, Sr. Notes, 6.125%, 11/15/08 275,000 245
State Street, Sub. Notes, 7.65%, 6/15/10 265,000 271
</TABLE>
28
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
Shares/Par Value
----------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Station Casinos, Sr. Sub. Notes, 10.125%, 3/15/06 $ 200,000 $ 204
Telecorp PCS, STEP, 0%, 4/15/09 150,000 95
Telefonica Europe, Sr. Sub. Notes, 7.75%, 9/15/10 360,000 359
Tenet Healthcare, Sr. Notes, 8.00%, 1/15/05 250,000 246
Textron, Sr. Notes, 6.375%, 7/15/04 600,000 591
Time Warner Telecom, Sr. Notes, 9.75%, 7/15/08 50,000 42
Toyota Auto Receivables Owner Trust, 6.80%, 4/15/07 575,000 580
TravelCenters of America, Sr. Sub. Notes, (144a)
12.75%, 5/1/09 + 400,000 378
Triton PCS, Sr. Sub. Disc. Notes, STEP, 0%, 5/1/08 250,000 185
United International Holdings, Sr. Disc. Notes
STEP, 0%, 2/15/08 300,000 123
Venture Holdings Trust, Sr. Sub. Notes, 9.50%, 7/1/05 150,000 72
Voicestream Wireless, Sr. Notes, 10.375%, 11/15/09 500,000 535
Waste Management, Sr. Notes, 7.70%, 10/1/02 400,000 396
Wells Fargo, Sr. Notes, 7.25%, 8/24/05 900,000 917
Western Wireless, Sr. Sub. Notes, 10.50%, 2/1/07 75,000 77
Westinghouse Air Brake, Sr. Notes, 9.375%, 6/15/05 200,000 192
Westpoint Stevens, Sr. Notes, 7.875%, 6/15/05 175,000 124
Worldcom, 8.25%, 5/15/10 700,000 728
Ziff Davis Media, Sr. Sub. Notes, (144a), 12.00%, 125,000 104
--------------
7/15/10 +
Total Corporate Bonds (Cost $49,471) 46,182
--------------
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES 10.2%
Federal Home Loan Mortgage, 7.00%, 11/1/30 1,125,000 1,115
Federal National Mortgage Assn.
REMIC, 6.50%, 3/20/23 609,654 602
7.00%, 4/18/22 1,102,913 1,100
7.50%, 8/1/30 1,495,718 1,506
Government National Mortgage Assn. I
6.00%, 5/15/26 - 12/15/28 484,174 463
6.50%, 4/15/26 - 5/15/29 7,809,409 7,626
7.00%, 2/15/27 - 1/15/29 7,839,199 7,807
7.50%, 9/15/22 - 12/15/25 533,600 542
8.00%, 1/15/22 - 11/15/24 244,305 251
</TABLE>
29
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
Shares/Par Value
----------------------------------------------------------------------------------------
In thousands
<S> <C> <C> <C>
8.50%, 9/15/24 $ 131,766 $ 136
10.50%, 2/15 - 8/15/13 4,038 4
II
7.00%, 2/20/27 - 4/20/30 1,434,801 1,425
8.00%, 10/20/25 64,927 66
Total U.S. Government Mortgage-Backed Securities
------------
(Cost $22,925) 22,643
------------
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS/
AGENCIES 16.5%
<S> <C> <C>
Tennessee Valley Authority
5.88%, 4/1/36 2,475,000 2,445
6.235%, 7/15/45 500,000 501
U.S. Treasury Bonds
5.50%, 8/15/28 1,600,000 1,554
6.75%, 8/15/26 10,970,000 12,433
7.50%, 11/15/16 1,150,000 1,360
U.S. Treasury Inflation-Indexed Notes
3.375%, 1/15/07 328,839 320
3.625%, 7/15/02 1,545,037 1,545
U.S. Treasury Notes
5.50%, 7/31/01 3,615,000 3,600
5.75%, 8/15/10 500,000 511
5.875%, 11/15/04 10,790,000 10,925
6.125%, 8/15/07 910,000 942
6.50%, 8/15/05 300,000 312
------------
Total U.S. Government Obligations/Agencies (Cost$35,556) $ 36,448
------------
SHORT-TERM INVESTMENTS 12.8%
Money Market Funds 12.8%
Reserve Investment Fund, 6.70% # 28,393,108 28,393
------------
Total Short-Term Investments (Cost $28,393) 28,393
------------
</TABLE>
30
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Value
--------------------------------------------------------------------------------
In thousands
Total Investments in Securities
99.4% of Net Assets (Cost $217,066) $ 219,850
Other Assets Less Liabilities 1,379
NET ASSETS $ 221,229
--------------
+ Private placement
# Seven-day yield
* Non-income producing
ADR American Depository Receipt
GDR Global Depository Receipt
ETC Equipment Trust Certificate
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
STEP Stepped coupon note for which the interest rate will adjust on specified
future date(s) 144a Security was purchased pursuant to Rule 144a under the
Securities Act of 1933 and may not be resold subject to that rule except
to qualified institutional buyers -- total of such securities at period-
end amounts to 2.9% of net assets.
AUD Australian dollar
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
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Unaudited November 30, 2000
STATEMENT OF ASSETS AND LIABILITIES
In thousands
Assets
Investments in securities, at value (cost $217,066) $ 219,850
Securities lending collateral 31,993
Other assets 4,909
------------
Total assets 256,752
------------
Liabilities
Obligation to return securities lending collateral 31,993
Other liabilities 3,530
------------
Total liabilities 35,523
------------
NET ASSETS $ 221,229
------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 1,551
Accumulated net realized gain/loss - net of distributions 3,155
Net unrealized gain (loss) 2,776
Paid-in-capital applicable to 16,947,877 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 213,747
------------
NET ASSETS $ 221,229
------------
NET ASSET VALUE PER SHARE $ 13.05
------------
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Unaudited
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
6 Months
Ended
11/30/00
Investment Income (Loss)
Income
Interest $ 4,468
Dividend 696
Other 44
Total income 5,208
Expenses
Investment management 461
Shareholder servicing 350
Custody and accounting 90
Prospectus and shareholder reports 18
Registration 14
Legal and audit 6
Directors 3
Miscellaneous 2
Total expenses 944
Expenses paid indirectly (1)
Net expenses 943
Net investment income (loss) 4,265
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 2,017
Foreign currency transactions (14)
Net realized gain loss 2,003
Change in net unrealized gain or loss
Securities (1,853)
Other assets and liabilities
denominated in foreign currencies (5)
Change in net unrealized gain or loss (1,858)
Net realized and unrealized gain (loss) 145
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 4,410
============
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Unaudited
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
11/30/00 5/31/00
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 4,265 $ 8,297
Net realized gain (loss) 2,003 2,224
Change in net unrealized gain or loss (1,858) (2,193)
Increase (decrease) in net assets from operations 4,410 8,328
Distributions to shareholders
Net investment income (4,215) (8,306)
Net realized gain - (5,649)
Decrease in net assets from distributions (4,215) (13,955)
Capital share transactions *
Shares sold 50,004 69,461
Distributions reinvested 4,159 13,769
Shares redeemed (32,014) (86,926)
Increase (decrease) in net assets from capital
shares redeemed 22,149 (3,696)
Net Assets
Increase (decrease) during period 22,344 (9,323)
Beginning of period 198,885 208,208
End of period $ 221,229 $ 198,885
==========================
*Share information
Shares sold 3,753 5,314
Distributions reinvested 317 1,066
Shares redeemed (2,425) (6,674)
Increase (decrease) in shares outstanding 1,645 (294)
</TABLE>
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
Unaudited November 30, 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 Income 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 income and a secondary emphasis on capital growth, by
investing in a diversified portfolio typically consisting of about 40% stocks,
40% bonds, and 20% money market securities.
The accompanying financial statements were prepared in accordance with generally
accepted accounting principles, which require the use of estimates made by fund
management.
Valuation Equity securities listed or regularly traded on a securities exchange
are valued at the last quoted sales price at the time the valuations are made. A
security that 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.
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 denominated in foreign currencies
are translated into U.S. dollar values each day at the prevailing exchange rate,
using the mean of the bid and offer prices of such currencies against U.S.
dollars quoted by a major bank. Purchases and sales of securities and income and
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T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
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.
In November, 2000, the American Institute of Certified Public Accountants issued
a revised Audit and Accounting Guide - Audits of Investment Companies (the
guide), which will be adopted by the fund as of June 1, 2001. The guide requires
all premiums and discounts on debt securities to be amortized and gain/loss on
paydowns of MBS to be accounted for as interest income. Upon adoption, the fund
will adjust the cost of its debt securities, and corresponding unrealized
gain/loss thereon, in the amount of the cumulative amortization that would have
been recognized had amortization been in effect from the purchase date of each
holding. This adjustment will have no effect on the fund's net assets or results
of operations.
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 net investment income and realized gains
determined in accordance with generally accepted accounting principles. Expenses
paid indirectly reflect credits earned on daily uninvested cash balances at the
custodian and are used to reduce the fund's custody charges.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
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T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
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. It receives as collateral cash and U.S. government securities
valued at 102%-105% of the value of the securities on loan. Cash collateral 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
the value of loaned securities, as determined at the close of fund business each
day; any additional collateral required due to changes in security values is
delivered to the fund the next business day. 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 the securities.
At November 30, 2000, the value of loaned securities was $31,077,000; aggregate
collateral consisted of $31,993,000 in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term and
U.S. government securities, aggregated $67,619,000 and $55,738,000,
respectively, for the six months ended November 30, 2000. Purchases and sales of
U.S. government securities aggregated $14,621,000 and $10,175,000, respectively,
for the six months ended November 30, 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 November 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled $217,066,000.
Net unrealized gain aggregated $2,784,000 at period-end, of which $15,559,000
related to appreciated investments and $12,775,000 to depreciated investments.
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T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
NOTE 4 - RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price
Associates). The investment management agreement between the fund and the
manager provides for an annual investment management fee, of which $89,000 was
payable at November 30, 2000. The fee is computed daily and paid monthly, and
consists of an individual fund fee equal to 0.15% 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 T. Rowe Price 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, 2000, and for the
six months then ended, the effective annual group fee rate was 0.32%. The fund
pays a pro-rata share of the group fee based on the ratio of its net assets to
those of the group.
Under the terms of the investment management agreement, the manager is required
to bear any expenses through May 31, 2002, which would cause the fund's ratio of
total expenses to average net assets to exceed 0.90%. 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 fund's ratio of total
expenses to average net assets to exceed 0.90%. Pursuant to this agreement,
$27,000 of management fees were not accrued by the fund for the six months ended
November 30, 2000. At November 30, 2000, unaccrued fees in the amount of $10,000
remain subject to reimbursement through May 31, 2000, and $27,000 through May
31, 2004.
In addition, the fund has entered into agreements with Price Associates and two
wholly owned subsidiaries of Price Associates, pursuant to which the fund
receives certain other services. Price Associates computes the daily share price
and maintains the financial records of the fund. T. Rowe Price Services, Inc. is
the fund's transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc. provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $358,000 for the six months
ended November 30, 2000, of which $54,000 was payable at period-end.
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T. ROWE PRICE PERSONAL STRATEGY INCOME FUND
--------------------------------------------------------------------------------
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 Price Associates. The Reserve Funds are offered
as cash management options only to mutual funds and other accounts managed by
Price Associates or T. Rowe Price International, 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, 2000,
totaled $828,000 and are reflected as interest income in the accompanying
Statement of Operations.
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 10/31/00
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.
For corporate shareholders, $748,000 of the fund's distributed income qualified
for the divi-dends-received deduction.
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
For the hearing impaired, call: 1-800-367-0763
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.
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor.
Walk-In Investor Centers:
For directions, call 1-800-225-5132
or visit our Web site at
www.troweprice.com/investorcenters
Baltimore Area
Downtown - new address
105 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
Colorado Springs
2260 Briargate Parkway
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
San Francisco Area
1990 North California Boulevard
Suite 100
Walnut Creek
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
C11-058 11/30/00
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