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Previous: PRICE T ROWE PERSONAL STRATEGY FUNDS INC, N-30D, 2001-01-16 |
Next: HOME PROPERTIES OF NEW YORK INC, 8-K/A, 2001-01-16 |
<PAGE>
--------------------------------------------------------------------------------
Semiannual Report - Financial Statements
--------------------------------------------------------------------------------
T. ROWE PRICE
PERSONAL STRATEGY
BALANCED FUND
-----------------
NOVEMBER 30, 2000
-----------------
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Unaudited
--------------------
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 $ 16.20 $ 16.20 $ 15.88 $ 14.07 $ 12.68 $ 11.15
Investment activities
Net investment
income (loss) 0.25 0.50 0.46 0.46* 0.42* 0.41*
Net realized and
unrealized gain (loss) (0.06) 0.39 0.81 2.15 1.69 1.56
Total from
investment activities 0.19 0.89 1.27 2.61 2.11 1.97
Distributions
Net investment income (0.25) (0.49) (0.46) (0.45) (0.40) (0.37)
Net realized gain - (0.40) (0.49) (0.35) (0.32) (0.07)
Total distributions (0.25) (0.89) (0.95) (0.80) (0.72) (0.44)
NET ASSET VALUE
End of period $ 16.14 $ 16.20 $ 16.20 $ 15.88 $ 14.07 $ 12.68
===========================================================
Ratios/Supplemental Data
Total return++ 1.15% 5.68% 8.37% 19.15%* 17.21%* 17.97%*
Ratio of total expenses to
average net assets 0.97%+ 0.98% 1.00% 1.05%* 1.05%* 1.05%*
Ratio of net investment
income (loss) to average
net assets 3.00%+ 3.05% 3.01% 3.09%* 3.20%* 3.44%*
Portfolio turnover rate 50.4%+ 48.2% 34.3% 41.5% 54.0% 47.7%
Net assets, end of period
(in thousands) $626,902 $611,856 $529,691 $328,356 $205,883 $116,826
</TABLE>
++ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* Excludes expenses in excess of a 1.05% voluntary expense limitation in effect
through 5/31/98.
+ Annualized
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Unaudited November 30, 2000
-------------------------
PORTFOLIO OF INVESTMENTS Shares/Par Value
--------------------------------------------------------------------------------
In thousands
COMMON STOCKS 57.3%
FINANCIAL 10.6%
Bank and Trust 4.1%
Abbey National 69,300 $ 1,093
ABN Amro Holding (EUR) 19,200 402
Allied Irish Banks (EUR) 31,900 346
Australia & New Zealand Banking Group (AUD) 34,500 273
Australia & New Zealand Banking Group ADR 6,400 250
Banca Commerciale Italiana (EUR) 72,100 450
Banca Intesa (EUR) 105,500 460
Banca Popolare di Milano (EUR) 16,800 108
Banco Bradesco ADR 42,400 294
Banco de Bilbao Vizcaya Argentaria ADR 58,600 776
Banco Frances del Rio de la Plata ADR 20,604 399
Banco Santiago ADR 26,200 524
Bank of America 40,500 1,617
Bank of New York 27,800 1,534
Bank One 44,700 1,601
Bankgesellschaft Berlin (EUR) 14,100 187
Barclays Group 30,355 853
BNP Paribas (EUR) 3,000 232
Charter One Financial 5,277 127
Chase Manhattan 25,650 946
Chittenden 17,800 478
Citizens Banking 11,300 266
Commonwealth Bank of Australia 31,100 519
Downey Financial 18,200 828
Dresdner Bank (EUR) 22,200 820
DSB Group Holdings 36,028 409
First Bell Bancorp 600 8
First Mariner Bancorp 1,500 7
Firstar 11,100 215
Frankfort First Bancorp 1,000 13
Glacier Bancorp 11,089 131
KBC Bancassurance Holding 5,700 223
Marshall & Ilsley 900 38
3
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Mellon Financial 70,600 $ 3,309
Overseas Chinese Bank 49,750 335
Societe Generale (EUR) 2,408 130
Southwest Bancorp * 15,900 566
State Street 8,900 1,148
Sumitomo Bank 81,000 807
Summit Bancorp 3,300 123
Svenska Handelsbanken (Series A) 31,000 494
UniCredito Italiano (EUR) 105,100 525
Valley National Bancorp 15,400 449
Wells Fargo 25,100 1,191
Westamerica 12,600 429
------------
25,933
------------
Insurance 2.8%
ACE Limited 30,700 1,213
Aegon (EUR) 10,200 420
American General 17,100 1,281
American International Group 5,889 571
AMP Limited 17,500 173
Brown and Brown 16,300 515
Harleysville Group 3,400 84
Hartford Financial Services Group 2,800 198
Istituto Nazionale delle Assicurazioni (EUR) * 106,560 305
London Pacific Group ADR 13,700 159
Marsh & McLennan 10,000 1,151
PartnerRe Holdings 10,400 549
Selective Insurance 3,300 66
St. Paul 50,500 2,531
Sumitomo Marine & Fire Insurance 152,000 1,018
Swiss Re 355 790
UNUMProvident 109,400 2,954
W. R. Berkley 5,400 194
XL Capital (Class A) 40,600 3,240
------------
17,412
------------
Financial Services 3.7%
American Express 40,200 2,209
Amvescap 29,800 477
Associates First Capital (Class A) 14,700 519
4
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
AXA (EUR) 4,000 $ 560
Banacci 580,800 799
Capital One Financial 15,600 871
Charles Schwab 8,750 242
Citigroup 66,897 3,332
Credit Lyonnais (EUR) 3,800 129
Delta Financial * 9,900 3
Fannie Mae 66,800 5,277
Financial Federal * 4,700 109
Freddie Mac 50,300 3,040
GIMV (EUR) 4,000 158
Goldman Sachs Group 3,000 246
HSBC Holdings (GBP) 97,345 1,284
ING Groep (EUR) 12,584 906
ITLA Capital * 6,400 94
Morgan Stanley Dean Witter 10,600 672
Nomura Securities 27,000 567
Pearson 18,000 399
Providian Financial 8,400 756
Stilwell Financial 16,400 533
------------
23,182
------------
Total Financial 66,527
------------
UTILITIES 4.0%
Telephone 2.4%
AT&T 27,024 530
AT&T Liberty Media (Class A) * 27,300 370
BellSouth 23,400 979
British Telecom ADR 4,800 413
KPN (EUR) 8,458 114
Nextel Communications (Class A) * 13,400 416
Nippon Telegraph & Telephone 150 1,292
Portugal Telecom (EUR) 9,200 75
Rural Cellular (Class A) * 2,000 72
SBC Communications 42,800 2,351
Sprint 33,700 775
Sprint PCS * 7,500 170
5
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Swisscom 789 $ 189
Tele Danmark 1,500 60
Telebras ADR 9,400 542
Telecom Corp. of New Zealand (NZD) 34,000 80
Telecom Corp. of New Zealand ADR 9,100 167
Telecom Italia (EUR) 62,375 721
Telecom Italia Mobile (EUR) 112,200 886
Telefonica ADR * 16,892 799
Telefonos de Mexico (Telmex) (Class L) ADR 29,200 1,369
Telekom Malaysia (MYR) 100 0
Vodafone PLC 62,750 2,149
Western Wireless * 3,400 135
WorldCom * 5,473 82
XO Communications * 6,800 101
------------
14,837
------------
Electric Utilities 1.5%
Cleco 15,900 744
E.On (EUR) 12,880 728
Electrobras 31,100 258
Empresa Nacional de Electricidad Chile ADR 41,957 422
Exelon 38,750 2,567
FirstEnergy 37,317 1,101
GPU 11,100 391
Hong Kong Electric Holdings 71,000 245
Iberdrola (EUR) 56,000 670
National Grid Group 19,400 170
Powergen 23,100 190
Sony 10,000 754
TXU 24,800 990
Unisource Energy 2,200 32
------------
9,262
------------
Water Utilities 0.1%
Suez Lyonnaise des Eaux (EUR) 5,100 864
------------
864
------------
Total Utilities 24,963
------------
6
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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Shares/Par Value
--------------------------------------------------------------------------------
In thousands
CONSUMER NONDURABLES 11.1%
Cosmetics 0.5%
Chattem * 6,400 $ 31
Gillette 41,700 1,413
International Flavors & Fragrances 82,300 1,538
Kao 14,000 429
------------
3,411
------------
Beverages 0.9%
Anheuser-Busch 47,300 2,244
Coca-Cola 19,000 1,190
Diageo ADR 11,275 471
Femsa UBD, Units
(Represents 1 Series B and 4 Series D shares) 108,500 373
LVMH (EUR) 2,840 188
PepsiCo 24,400 1,107
------------
5,573
------------
Food Processing 1.7%
American Italian Pasta * 6,600 150
Associated British Foods 78,800 542
Cadbury Schweppes 27,200 189
Cadbury Schweppes ADR 6,200 177
Campbell 48,900 1,632
Carrefour (EUR) 13,800 831
Casino Guich-Perrachon (EUR) 2,100 202
Danisco 1,000 37
Eridania Beghin-Say (EUR) 2,400 240
G.I.B. Group (EUR) 5,300 221
General Mills 50,720 2,086
International Multifoods 18,000 348
Nestle 371 805
Quaker Oats 1,300 113
Ralston Purina 58,400 1,537
Sara Lee 21,700 521
Seneca Foods (Class A) * 3,000 39
Seneca Foods (Class B) * 100 1
Unilever 11,678 725
------------
10,396
------------
7
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Hospital Supplies/Hospital Management 0.7%
Airgas * 16,500 $ 124
Allergan 1,600 149
Baxter International * 16,500 1,428
Cephalon * 6,324 293
Guidant * 500 27
Hooper Holmes 13,600 136
Lincare Holdings * 10,000 441
Mentor 17,700 321
Molecular Devices * 2,800 136
Renal Care Group * 7,400 161
Smith & Nephew 110,772 500
Steris * 9,600 144
Terumo 14,000 277
------------
4,137
------------
Pharmaceuticals 4.0%
American Home Products 110,260 6,629
Amgen * 6,000 382
Arena Pharmaceuticals * 1,100 22
AstraZeneca Group 14,007 715
AstraZeneca Group ADR 20,400 1,049
AtheroGenics * 100 1
Aurora Biosciences * 2,800 89
Genetech * 9,000 612
Glaxo Wellcome ADR 21,100 1,209
IDEC Pharmaceuticals * 1,500 261
Immunex * 4,100 152
Incyte Genomics * 2,900 77
Johnson & Johnson 10,900 1,090
MedImmune * 9,900 526
Merck 11,100 1,029
Novartis 1,372 2,225
Noven Pharmaceuticals * 2,100 55
Novo Nordisk 200 39
NPS Pharmaceuticals * 3,700 144
Pfizer 105,310 4,666
Pharmacia 28,455 1,736
Schering-Plough 21,000 1,177
8
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Syngenta (CHF) * 343 $ 15
Syngenta (London Exchange)(GBP) * 348 15
Takeda Chemical Industries 15,000 928
Triangle Pharmaceuticals * 11,400 62
------------
24,905
------------
Biotechnology 0.2%
Abgenix * 1,600 78
Alkermes * 5,200 155
COR Therapeutics * 4,200 149
Cubist Pharmaceuticals * 1,700 55
Deltagen * 1,000 12
Eden Bioscience * 1,100 39
Edwards Lifesciences * 8,300 133
Genaissance Pharmaceuticals * 1,800 35
Gilead Sciences * 700 57
Inhale Therapeutic Systems * 10,800 420
Neose Technologies * 400 12
Neurocrine Biosciences * 2,300 67
Serologicals * 8,200 78
Viropharma * 1,100 17
------------
1,307
------------
Health Care Services 0.6%
AmeriPath * 13,600 226
Boron LePore & Associates * 2,200 21
Bruker Daltonics * 200 4
CIGNA 7,000 922
Orthodontic Centers of America * 6,100 185
Packard BioScience * 3,500 34
UnitedHealth Group 12,100 1,420
Wellpoint Health Networks * 5,900 636
Wilson Greatbatch Technologies * 7,200 172
------------
3,620
------------
Miscellaneous Consumer Products 2.5%
Bridgestone 11,000 137
Coach * 1,600 35
Colgate-Palmolive 42,300 2,485
Cone Mills * 17,600 58
Culp 6,000 16
9
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Dan River * 14,500 $ 31
Electrolux (Class B) 8,100 112
Energizer Holdings * 19,466 376
Harcourt General 33,600 1,856
Lion Nathan (NZD) 166,400 364
Mattel 102,200 1,290
Mitsui 110,000 682
Newell Rubbermaid 33,400 649
Nintendo 3,500 524
Philip Morris 100,250 3,828
Philips Electronics ADR 20,349 668
Polymer Group 11,100 63
QuickSilver * 5,900 123
Reebok International * 5,200 111
Sola International * 20,400 74
Stride Rite 16,700 99
Tomkins 133,100 283
Unifi * 14,200 122
UST 62,100 1,475
Wacoal 23,000 206
WestPoint Stevens 5,500 35
Yue Yuen Industrial 127,000 244
------------
15,946
------------
Total Consumer Nondurables 69,295
------------
CONSUMER SERVICES 5.1%
General Merchandisers 0.7%
Bon-Ton Stores * 17,300 51
Casey's General Stores 32,100 374
Columbia Sportswear * 6,600 273
Marui 12,000 155
Neiman Marcus Group * 9,800 295
Target 19,000 571
Tesco 264,946 1,070
Wal-Mart 25,800 1,347
Wal-Mart de Mexico 155,600 337
------------
4,473
------------
10
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Specialty Merchandisers 1.9%
Albertson's 58,400 $ 1,493
CVS 20,470 1,164
Home Depot 19,450 762
Kroger * 40,000 1,060
Loew's 2,000 80
Nordstrom 66,800 1,073
O' Charley's * 20,400 353
PurchasePro.com * 6,200 86
Safeway * 30,000 1,768
Toys "R" Us * 116,700 2,210
Tupperware 80,400 1,467
Urban Outfitters * 7,000 55
Wild Oats Markets * 8,400 37
------------
11,608
------------
Entertainment and Leisure 1.1%
Disney * 113,700 3,290
Houghton Mifflin 6,200 227
Hutchison Whampoa (HKD) 126,500 1,512
Papa John's International * 7,800 207
Sharp 14,000 167
Sonic 4,200 164
Viacom (Class B) * 30,267 1,548
------------
7,115
------------
Media and Communications 1.2%
American Tower (Class A) * 1,200 36
Asatsu 6,000 152
Classic Communications (Class A) * 6,200 22
Clear Channel Communications * 18,173 918
Comcast (Class A Special) * 6,400 246
Crown Castle International * 8,400 200
Elsevier (EUR) 10,300 130
Emmis Broadcasting (Class A) * 8,700 205
Infinity Broadcasting (Class A) * 22,400 678
McGraw-Hill 5,600 297
Mediaset (EUR) 24,400 318
News Corporation ADR 9,400 328
Pegasus Communications * 3,500 93
11
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Publishing & Broadcasting 53,600 $ 360
R.R. Donnelley 139,500 3,121
Sinclair Broadcast Group (Class A) * 18,600 164
Young Broadcasting (Class A) * 5,300 144
7,412
Restaurants 0.1%
Applebee's 4,900 162
Buca * 12,800 203
PJ America * 7,200 51
Ruby Tuesday 14,400 219
Uno Restaurant * 8,200 68
703
Printing and Publishing 0.1%
Reed International 67,400 603
603
Total Consumer Services 31,914
EDUCATION 0.0%
Education 0.0%
ITT Educational Service * 600 12
Societe BIC (EUR) 3,600 129
Total Education 141
CONSUMER CYCLICALS 2.9%
Automobiles and Related 0.5%
A.O. Smith (Class B) 20,900 348
Cycle & Carriage 22,000 43
DaimlerChrysler (EUR) 5,900 226
Fiat (EUR) 4,300 105
Honda Motor 6,000 210
Honda Motor ADR 5,200 359
Keystone Automotive * 6,000 34
Littelfuse * 15,000 384
Peugeot 2,708 559
Strattec Security * 3,600 119
Volkswagen (EUR) 10,400 515
Volvo (Class B) 3,400 50
2,952
12
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Building and Real Estate 1.8%
Apartment Investment & Management, REIT 2,600 $ 120
Arden Realty, REIT 11,000 269
Capitaland * 46,000 74
Cemex, Participating Certificates
(Represents 2 Series A and 1 Series B shares) 78,170 310
Cheung Kong Holdings 84,000 945
City Developments 15,000 68
EastGroup Properties, REIT 13,200 262
Federal Realty Investment Trust, REIT 85,000 1,636
First Washington Realty Trust, REIT 5,700 145
Glenborough Realty Trust, REIT 10,500 160
JP Realty, REIT 10,300 158
Parkway Properties, REIT 12,700 355
Reckson Associates Realty (Class B), REIT 3,434 81
Reckson Associates Realty, REIT 82,600 1,936
RMC 12,400 100
Simco (EUR) 2,300 144
Simon Property Group, REIT 68,272 1,566
Singapore Land 36,000 72
Slough Estates 63,000 348
Starwood Hotels & Resorts Worldwide, REIT 67,600 2,163
Westfield Trust 205,900 345
Woodhead Industries 11,800 259
11,516
Miscellaneous Consumer Durables 0.6%
CompX 9,400 115
Eastman Kodak 57,900 2,432
Harman 21,000 767
Intranet Solutions * 4,700 174
OCE (EUR) 1,700 26
3,514
Total Consumer Cyclicals 17,982
TECHNOLOGY 5.3%
Electronic Components 1.4%
Altera * 21,400 513
American Superconductor * 2,800 66
13
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Analog Devices * 12,300 $ 610
Analogic 7,300 255
Artesyn Technologies * 10,800 371
ASM Lithography (EUR) * 2,400 50
ATMI * 8,100 125
Benchmark Electronics * 8,900 257
EMC * 9,800 729
Epcos (EUR) * 300 24
Exar * 6,100 153
Flextronics International * 30,500 763
Intel 29,100 1,108
Kyocera 4,000 523
LSI Logic * 14,700 265
Maxim Integrated Products * 11,000 561
Methode Electronics (Class A) 12,500 257
MKS Instruments * 300 4
Motorola 7,700 154
PMC-Sierra * 2,200 203
QLogic * 2,900 235
QuickLogic * 9,000 63
Sez Holding 157 92
SIPEX * 6,500 165
Spirent 59,700 435
Texas Instruments 17,700 660
Xilinx * 8,900 347
8,988
Electronic Systems 0.8%
Agilent Technologies * 1,300 68
Applied Biosystems Group 3,900 322
Applied Materials * 15,100 611
Applied Micro Circuits * 4,000 194
Armor Holdings * 23,100 365
Black Box * 7,100 396
Hewlett-Packard 13,500 427
KLA-Tencor * 6,400 176
Lifeline Systems * 6,500 84
Lo-Jack * 8,900 67
Solectron * 20,800 582
14
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
STMicroelectronics (EUR) 10,200 $ 430
Waters * 16,200 1,042
4,764
Information Processing 0.3%
Dell Computer * 31,800 611
F. Y. I. * 10,100 294
Hitachi 27,000 257
Hitachi ADR 7,700 731
1,893
Office Automation 0.0%
Technitrol 6,000 225
225
Specialized Computer 0.1%
Activision * 3,700 40
Sun Microsystems * 8,800 669
Symbol Technologies 1,300 52
Virata * 1,200 17
778
Telecommunications 2.6%
Airgate PCS * 1,700 39
Airnet Communications * 1,600 13
Alcatel (EUR) 14,300 709
Avaya * 2,083 24
China Mobile (Hong Kong) ADR * 6,900 183
Cisco Systems * 60,800 2,909
Corning 39,300 2,299
Deutsche Telekom (EUR) 33,500 1,052
Ditech Communications * 2,400 38
Eircom (EUR) 26,400 60
France Telecom 1,600 134
France Telecom ADR 9,500 808
Harmonic Lightwaves * 10,200 77
JDS Uniphase * 3,900 196
LM Ericsson (Class B) ADR 86,400 985
Lucent Technologies 25,000 389
Marconi 25,600 241
Nokia ADR 72,600 3,104
Nortel Networks 22,500 849
15
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Pacific Century CyberWorks ADR 8,001 $ 46
Peco II * 4,200 59
QUALCOMM * 500 40
SDL * 3,800 691
Singapore Telecommunications 159,000 265
Sonera Group (EUR) 12,700 243
Tellabs * 1,700 90
Telstra 78,600 257
Vyyo * 1,800 16
West TeleServices * 5,400 144
------------
15,960
------------
Aerospace and Defense 0.1%
DONCASTERS ADR * 3,300 55
Harsco 10,400 222
United Technologies 4,000 283
Woodward Governor 3,700 140
700
------------
Total Technology 33,308
------------
CAPITAL EQUIPMENT 1.5%
Electrical Equipment 1.1%
ABB 5,454 496
Bang & Olufsen (Class B) (DKK) 4,300 185
Canon 16,000 627
GE 59,700 2,959
Getronics (EUR) 5,400 28
hi/fn * 3,900 128
LSI Industries 8,900 189
Matsushita Electric Industrial 37,000 927
Mitsubishi Electric 81,000 525
Tyco International 22,942 1,210
------------
7,274
------------
Machinery 0.4%
Actuant 20,000 72
Alstom (EUR) 7,500 176
Brooks Automation * 4,800 109
Danaher 14,600 952
16
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Deere 17,000 $ 692
GKN 12,400 136
NN Ball & Roller 7,100 59
Saurer * 274 120
------------
2,316
------------
Total Capital Equipment 9,590
------------
BUSINESS SERVICES AND
TRANSPORTATION 4.9%
Computer Service and Software 2.2%
724 Solutions * 700 14
Actuate * 3,800 77
America Online * 38,500 1,563
Analysts International 11,800 59
Ariba * 5,100 317
Automatic Data Processing 19,600 1,294
BISYS Group * 7,800 335
Cambridge Technology Partners * 6,800 16
Concord Communications * 3,800 24
Digital Impact * 5,500 16
Electronic Arts * 2,100 75
First Data 23,284 1,192
Fujitsu 30,000 478
Genomica * 300 2
Great Plains Software * 1,500 70
iGATE Capital * 9,200 37
Interact Commerce * 7,700 61
Intuit * 7,100 323
Jack Henry & Associates 1,200 65
Juniper Networks * 2,400 299
Keynote Systems * 5,200 95
Loislaw.com * 2,400 2
Macromedia * 3,400 218
Microsoft * 45,100 2,588
net.Genesis * 5,800 18
NetIQ * 4,100 329
Oracle * 47,800 1,268
17
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Packeteer * 3,900 $ 49
Peregrine Systems * 1,400 23
Pixelworks * 1,900 47
Progress Software * 27,300 352
PSINet * 7,860 9
Quest Software * 1,300 35
Register.com * 2,200 13
SAP (EUR) 3,468 365
Sema 7,900 32
Siebel Systems * 8,300 580
Softbank 3,500 183
Sonicwall * 2,000 33
SPSS * 5,200 83
SunGard Data Systems * 300 15
Telecommunication Systems * 400 3
USinternetworking * 14,800 42
Verisign * 700 61
VERITAS Software * 4,850 473
Verity * 3,400 50
WebTrends * 6,200 157
Zebra Technologies (Class A) * 2,900 121
13,561
Distribution Services 0.2%
MSC Industrial Direct * 6,900 107
Primesource 4,200 20
SCP Pool * 16,700 451
SunSource * 6,100 19
TNT Post Group (EUR) 3,800 91
United Stationers * 10,700 275
Watsco (Class A) 12,100 131
1,094
Environmental 0.0%
CUNO * 6,300 181
IT Group * 10,100 40
Rentokil Initial 55,800 158
Waterlink * 11,900 7
386
18
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Transportation Services 0.5%
Bergesen (Class A) 13,100 $ 226
C.H. Robinson Worldwide 4,100 232
Comfort Systems USA * 20,200 63
EGL * 5,900 202
Expeditors International of Washington 6,400 332
Heartland Express * 2,900 60
Hub Group (Class A) * 1,500 11
International Shipholding 3,700 26
Mitsubishi Heavy Industries 294,000 1,283
Seacor Smit * 10,000 420
UTI Worldwide * 4,100 67
2,922
Miscellaneous Business Services 1.6%
AnswerThink * 7,000 39
British Airport Authorities 22,347 191
Concord EFS * 2,800 122
Corio * 900 3
Electro Rent * 10,700 121
Exodus Communications * 5,600 127
G&K Services 7,500 202
H&R Block 65,900 2,319
Hays 32,300 166
Herman Miller 4,500 106
Insituform Technologies (Class A) * 13,600 463
Iron Mountain * 13,150 436
Ivex Packaging * 17,900 157
Kforce.com * 7,600 36
Maximus * 14,300 405
McGrath RentCorp 6,700 119
MPW Industrial Services Group * 11,100 20
New England Business Service 15,800 250
Omnicom Group 9,900 778
Strayer Education 6,600 165
Tetra Tech * 14,256 499
Vedior (EUR) 7,200 80
Waste Management 145,926 3,493
------------
10,297
------------
19
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Airlines 0.1%
Midwest Express Holdings * 8,100 $ 129
Singapore Airlines 48,000 462
------------
591
------------
Railroads 0.3%
Norfolk Southern 133,200 1,915
Railtrack Group 19,000 256
2,171
------------
Total Business Services and Transportation 31,022
------------
ENERGY 5.6%
Energy Services 1.0%
Atwood Oceanics * 5,300 167
Baker Hughes 117,700 3,892
BJ Services * 5,500 293
Cooper Cameron * 2,200 119
Grant Prideco * 4,300 61
Hydril * 2,400 42
Johnson Electric Holdings (HKD) 593,800 1,115
Kansai Electric Power 22,000 370
Smith International * 1,700 99
Tokyo Electric Power 12,000 283
Weatherford International * 2,100 70
------------
6,511
------------
Exploration & Production 0.8%
Barrett Resources * 11,900 460
Chieftain International * 10,900 243
Cross Timbers Oil 22,500 447
Forest Oil * 19,300 239
Key Energy Services * 22,000 160
National Oilwell * 6,100 194
Noble Affiliates 10,800 402
Santos 49,000 159
Unocal 83,600 2,853
------------
5,157
------------
20
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Integrated Petroleum - Domestic 0.7%
Amerada Hess 5,000 $ 306
Conoco (Class B) 33,989 852
USX-Marathon 123,500 3,257
4,415
Integrated Petroleum - International 3.0%
BP Amoco ADR 127,496 6,048
Chevron 13,800 1,130
ENI (EUR) 27,700 167
ENI SPA ADR 8,200 501
Exxon Mobil 54,156 4,766
Petroleo Brasileiro (Petrobras) ADR 31,600 757
Repsol 14,200 233
Royal Dutch Petroleum 37,100 2,214
Shell Transport & Trading ADR 10,700 509
Texaco 16,400 952
TotalFinaElf (Class B) (EUR) 5,100 729
TotalFinaElf ADR 5,896 416
18,422
Gas Transmission 0.1%
El Paso Energy 5,400 324
324
------------
Total Energy 34,829
------------
PROCESS INDUSTRIES 2.7%
Diversified Chemicals 0.7%
Arch Chemicals 15,300 275
Cabot Microelectronics * 3,800 140
Dow Chemical 56,700 1,733
DuPont 11,273 477
Hercules 86,800 1,649
4,274
Specialty Chemicals 1.1%
3M 23,500 2,347
Akzo Nobel (EUR) 2,600 123
BASF (EUR) 15,480 584
Great Lakes Chemical 42,840 1,497
21
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Imperial Chemical ADR 4,200 $ 114
MacDermid 1,600 30
Norsk Hydro (NOK) 8,700 349
Pall 75,500 1,505
Sumitomo Chemicals 65,000 285
6,834
Paper and Paper Products 0.4%
Buckeye Technologies * 10,900 138
Jefferson Smurfit (GBP) 615 1
Kimberly-Clark 30,600 2,140
Kimberly-Clark de Mexico (Class A) 159,900 399
Smurfit-Stone Container * 7,100 90
2,768
Forest Products 0.4%
Georgia-Pacific 28,555 719
Rio Tinto (GBP) 8,200 123
Weyerhaeuser 33,400 1,461
2,303
Building and Construction 0.1%
Dal-Tile International * 4,900 60
Eiffage (EUR) 3,000 151
Layne Christensen * 8,900 35
Simpson Manufacturing * 3,600 170
Trex * 1,500 33
U.S. Aggregates 7,000 62
511
------------
Total Process Industries 16,690
------------
BASIC MATERIALS 1.1%
Metals 0.9%
Alcoa 78,016 2,199
Gibraltar Steel 2,800 38
Material Sciences * 13,200 129
Matthews (Class A) 16,600 479
Pechiney (EUR) 3,000 117
Phelps Dodge 58,400 2,869
5,831
22
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Mining 0.2%
Battle Mountain Gold * 50,200 $ 79
Lihir Gold (AUD) * 183,620 56
Rio Tinto 36,000 498
Union Miniere 6,200 218
851
Miscellaneous Materials 0.0%
Malayan Cement 44,150 14
14
------------
Total Basic Materials 6,696
------------
MISCELLANEOUS 0.0%
Miscellaneous 0.0%
Syngenta ADR * 2,537 22
Other Miscellaneous Common Stocks 5,200 74
96
Conglomerates 0.0%
Orkla (Class A) 4,457 80
80
------------
Total Miscellaneous 176
------------
FOREIGN 2.5%
Europe 1.4%
Aventis (EUR) 11,600 909
Bank of Scotland (GBP) 74,100 716
BG Group (GBP) 67,822 277
BNL (EUR) 29,000 89
Brembo (EUR) * 10,800 92
Cap Gemini (EUR) 1,600 221
Credit Suisse Group (CHF) 5,100 888
CSM (EUR) 5,000 124
Deutz (EUR) * 35,600 88
DnB Holding (NOK) 25,500 117
EM.TV (EUR) 2,100 35
Essilor International (EUR) 526 153
Fortis B (EUR) 8,000 236
Granada Compass (GBP) * 32,167 304
23
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Ifil (EUR) 6,000 $ 49
Lafarge (EUR) 1,700 127
Lattice Group (GBP) * 67,822 143
Merck KGaA (EUR) 7,100 276
Metro (EUR) 2,300 99
Munich Re (EUR) 4,075 1,324
Nordic Baltic Holding (SEK) * 75,320 538
Novozymes (B Shares) (DKK) * 200 4
OMV (EUR) 300 20
Prosegur Seguridad (EUR) 11,600 120
Publicis Groupe (EUR) 6,510 194
Radiometer (DKK) 3,200 78
Rolls Royce (GBP) 122,517 361
Sandvik (SEK) 6,800 146
Seat Pagine Gialle (EUR) * 3,493 9
Securitas (Class B) (SEK) 6,000 97
SGL Carbon (EUR) * 1,300 63
Sodexho Alliance (EUR) 1,600 287
Svenska Cellulosa (SEK) 9,200 180
Swatch (CHF) 549 130
Tullow Oil (EUR) * 342 0
------------
8,494
------------
Far East 0.8%
Advantest (JPY) 2,000 235
Asahi Breweries (JPY) 31,000 329
Ashikaga Bank (JPY) * 134,000 247
Daiei (JPY) * 63,000 125
Fujikura (JPY) 108,000 928
Maeda Road Construction (JPY) 73,000 312
Mitsubishi Chemical (JPY) 100,000 280
Mizuho Holdings (JPY) 136 879
Nissan Motor (JPY) * 98,000 598
Showa Shell Sekiyu (JPY) 20,000 99
Singapore Press Holdings (SGD) 21,200 330
Takashimaya (JPY) 26,000 187
Teijin (JPY) 86,000 399
Toho (JPY) 3,500 468
Yakult Honsha (JPY) 17,000 194
------------
5,610
------------
24
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Other Foreign 0.3%
San Paolo IMI (EUR) 1,815 $ 28
Siemens (EUR) 7,500 852
Unibanco GDR 15,400 343
ValiCert * 6,200 41
Woolworths (AUD) 139,200 568
1,832
------------
Total Foreign 15,936
------------
Total Common Stocks (Cost $322,254) 359,069
------------
CORPORATE BONDS 16.9%
Abitibi Consolidated, Sr. Notes, 8.55%, 8/1/10 $ 2,000,000 1,948
Acme Television, 10.875%, 9/30/04 175,000 154
AFC Enterprises, Sr. Sub Notes, 10.25%, 5/15/07 500,000 460
Agrosy Gaming, Sr. Notes, 10.75%, 6/1/09 250,000 258
AIG Sunamerica Global Financing
Sr. Notes, (144a), 7.60%, 6/15/05+ 1,750,000 1,807
Alaska Communications, Sr. Sub Notes, 9.375%, 5/15/09 400,000 328
Alcoa, Sr. Notes, 7.375%, 8/1/10 500,000 512
Allied Holdings, Sr. Notes, 8.625%, 10/1/07 500,000 385
American Airlines, 9.71%, 1/2/07 34,043 36
American Builders & Contractors Supply
Sr. Sub. Notes, 10.625%, 5/15/07 500,000 405
American Express, 7.60%, 8/15/02 300,000 302
American Pacific, Sr. Notes, 9.25%, 3/1/05 350,000 343
Amerigas Partners, Sr. Notes, 10.125%, 4/15/07 200,000 198
Amkor Technology, Sr. Notes, 9.25%, 5/1/06 350,000 331
AMR, Deb., 9.00%, 9/15/16 100,000 101
Anteon, Sr. Sub. Notes, 12.00%, 5/15/09 250,000 224
Associated Materials, Sr. Sub. Notes, 9.25%, 3/1/08 500,000 480
AT&T, Sr. Notes, 6.00%, 3/15/09 700,000 624
Atlantic Richfield, Deb. 9.125%, 3/1/11 1,000,000 1,169
Avis Group Holdings, Sr. Sub. Notes, 11.00%, 5/1/09 500,000 535
B&G Foods, Sr. Sub. Notes, 9.625%, 8/1/07 500,000 333
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 500,000 455
California Special Purpose Trust, 6.42%, 9/25/08 1,525,000 1,519
Capital One Bank, Sr. Notes, 8.25%, 6/15/05 1,000,000 983
25
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Capital One Master Trust, 7.90%, 10/15/10 $ 1,150,000 $ 1,170
Case Equipment Loan Trust, 5.83%, 2/15/05 1,699,943 1,684
Centerpoint Properties Trust, 7.90%, 1/15/03 1,000,000 1,007
Charter Communications, Sr. Notes, 8.25%, 4/1/07 500,000 434
Cinemark USA, Sr. Sub. Notes, 8.50%, 8/1/08 300,000 186
CIT Equipment Collateral Trust, 6.93%, 7/20/11 1,600,000 1,614
CIT RV Trust, 6.09%, 2/15/12 2,065,000 2,051
Classic Cable, Sr. Sub. Notes, 9.375%, 8/1/09 500,000 250
CMS Energy, Sr. Notes, 9.875%, 10/15/07 450,000 463
Coinmach, Sr. Notes, 11.75%, 11/15/05 250,000 251
COMM 2000
7.416%, 4/15/10 925,000 932
7.494%, 4/15/10 925,000 948
Comstock Resources, Sr. Notes, 11.25%, 5/1/07 375,000 382
Consolidated Container, Sr. Sub. Notes, 10.125%, 7/15/09 750,000 645
Container Corp. of America, Sr. Notes, 9.75%, 4/1/03 250,000 249
Cott, Sr. Notes
8.50%, 5/1/07 125,000 116
9.375%, 7/1/05 225,000 218
Courtyard by Marriott II, Sr. Notes, 10.75%, 2/1/08 100,000 100
Cox Communications, Deb., 7.25%, 11/15/15 600,000 558
DaimlerChrysler Auto Trust, 6.66%, 1/8/05 2,000,000 2,010
Dan River, Sr. Sub. Notes, 10.125%, 12/15/03 500,000 350
Dealer Auto Receivables Trust, 7.12%, 3/15/05 1,675,000 1,700
Delta Mills, Sr. Notes, 9.625%, 9/1/07 150,000 131
Deutsche Telekom, 8.00%, 6/15/10 1,100,000 1,114
Doane Pet Care, Sr. Sub. Notes, 9.75%, 5/15/07 400,000 288
Dobson Communications, Sr. Notes, 10.875%, 7/1/10 500,000 480
Dyersburg, Sr. Sub. Notes, 9.75%, 9/1/07 * 250,000 15
Dyncorp, Sr. Sub. Notes, 9.50%, 3/1/07 225,000 178
Energy Corp. of America, Sr. Sub. Notes, 9.50%, 5/15/07 250,000 195
Exodus Communications, Sr. Notes, 10.75%, 12/15/09 450,000 355
Fairfax Financial, Sr. Notes, 8.25%, 10/1/15 3,550,000 2,978
Flextronics International
Sr. Sub. Notes, (144a), 9.875%, 7/1/10+ 450,000 426
Focal Communications, Sr. Notes, 11.875%, 1/15/10 200,000 104
Ford Motor Credit, Sr. Notes, 5.80%, 1/12/09 2,000,000 1,768
Frontier Oil, Sr. Notes, 11.75%, 11/15/09 50,000 50
Frontiervision, Sr. Sub. Notes, 11.875%, 10/15/06 300,000 258
26
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Frontiervision, Sr. Disc. Notes, 11.875%, 9/15/07 300,000 $ 234
Geophysique, 10.625%, Sr. Notes, (144a), 11/15/07 + 300,000 300
Global Crossing Holdings, Sr. Notes, 9.50%, 11/15/09 600,000 507
Global Imaging, Sr. Sub. Notes, 10.75%, 2/15/07 200,000 150
Goldman Sachs Group, Sr. Notes, 7.80%, 1/28/10 1,200,000 1,213
Harrahs, Sr. Sub. Notes, 7.875%, 12/15/05 500,000 485
Hawk, Sr. Notes, 10.25%, 12/1/03 750,000 712
Hercules, Sr. Notes, (144a), 11.125%, 11/15/07 + 225,000 214
Hewlett Packard, 7.15%, 6/15/05 1,100,000 1,117
HMH Properties, Sr. Sec. Notes, 7.875%, 8/1/08 250,000 229
Hollinger International Publishing
Sr. Sub. Notes, 9.25%, 3/15/07 1,000,000 985
Holmes Products, Sr. Sub. Notes, 9.875%, 11/15/07 25,000 14
Insight Midwest, Sr. Notes, (144a), 10.50%, 11/1/10 + 1,000,000 995
Intermedia Communications of Florida
Sr. Disc. Notes, STEP, 0%, 7/15/07 600,000 480
International Cabletel, Sr. Notes, STEP, 0%, 2/1/06 250,000 215
International Game Technology, 8.375%, 5/15/09 1,000,000 975
International Wire, Sr. Sub. Notes, 11.75%, 6/1/05 500,000 490
Intertek Finance, Sr. Notes, 10.25%, 11/1/06 350,000 175
Isle of Capri Casinos, 8.75%, 4/15/09 250,000 213
Jack in the Box, Sr. Notes, 9.75%, 11/1/03 175,000 175
Jitney-Jungle Stores, Sr. Notes, 12.00%, 3/1/06 * 350,000 5
JP Morgan Commercial Mortgage Finance, 7.6795%, 8/15/32 1,000,000 1,026
Keebler Foods, Sr. Sub. Notes, 10.75%, 7/1/06 1,000,000 1,060
KPN, Sr. Notes, (144a), 8.00%, 10/1/10 + 1,800,000 1,742
L3 Communications, Sr. Sub. Notes, 10.375%, 5/1/07 25,000 26
LB Commercial Conduit Mortgage Trust, 6.78%, 4/15/09 1,900,000 1,857
Lear, Sr. Notes, 7.96%, 5/15/05 250,000 235
Lehman Brothers Holdings, 7.875%, 8/15/10 1,000,000 992
Lennar, Sr. Notes, 9.95%, 5/1/10 400,000 396
LifePoint Hospitals, Sr. Sub. Notes, 10.75%, 5/15/09 1,000,000 1,040
Lockheed Martin, 8.20%, 12/1/09 1,500,000 1,604
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 350,000 326
MBNA, Sr. Notes, 7.75%, 9/15/05 1,000,000 984
McLeod USA, Sr. Disc. Notes, Zero Coupon, 3/1/07 175,000 134
Metromedia Fiber Network, Sr. Notes, 10.00%, 11/15/08 925,000 712
27
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
Shares/Par Value
------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Metronet Communications, Sr. Disc. Notes
STEP, 0%, 6/15/08 $ 1,000,000 $ 800
Mohegan Tribal Gaming Authority, Sr. Notes, 8.125%, 1/1/06 500,000 487
Morgan Stanley Dean Witter, 7.75%, 6/15/05 900,000 923
Nextel Communications, Sr. Disc. Notes
STEP, 0%, 10/31/07 1,400,000 966
Nextlink Communications, Sr. Disc. Notes
STEP, 0%, 6/1/09 800,000 268
Niagara Mohawk, 1st Mtg., 7.75%, 5/15/06 2,000,000 2,053
Nissan Auto Receivables Owner Trust, 6.72%, 8/16/04 950,000 953
Nortek, Sr. Sub. Notes, 9.875%, 3/1/04 400,000 367
Northern Trust, 6.65%, 11/9/04 2,000,000 1,991
Northland Cable Television, Sr. Sub. Notes, 10.25%, 11/15/07 250,000 183
NTL Communications, Sr. Notes, (144a), 11.875%, 10/1/10 + 250,000 204
Nuevo Energy, Sr. Sub. Notes, 9.50%, 6/1/08 500,000 500
Ocean Energy, Sr. Sub. Notes, 8.375%, 7/1/08 450,000 448
Omnicare, 5.00%, 12/1/07 300,000 224
Orange, Sr. Notes, 9.00%, 6/1/09 1,000,000 1,030
Orion Power Holdings, Sr. Notes, (144a), 12.00%, 5/1/10 + 450,000 481
Owens & Minor, Sr. Sub. Notes, 10.875%, 6/1/06 150,000 155
P&L Coal Holdings, Sr. Notes, 8.875%, 5/15/08 1,000,000 987
Packaging Corp. of America, Sr. Sub. Notes, 9.625%, 4/1/09 1,000,000 1,027
Pegasus Communications, Sr. Notes, 9.625%, 10/15/05 450,000 414
Premier Parks
Sr. Disc. Notes, STEP, 0%, 4/1/08 500,000 337
Sr. Notes
8.875%, 4/1/06 350,000 324
9.75%, 6/15/07 250,000 234
Price Communications Wireless, Sr. Notes, 9.125%, 12/15/06 650,000 669
Pride Petroleum Services, Sr. Notes, 9.375%, 5/1/07 350,000 348
Principal Mutual
7.875%, 3/1/24 + 250,000 223
(144a), 8.00%, 3/1/44 3,550,000 3,128
Quest Diagnostics, Sr. Sub. Notes, 10.75%, 12/15/06 475,000 503
Qwest Capital Funding, (144a), 7.90%, 8/15/10 + 2,000,000 2,033
Qwest Communications
Sr. Disc. Notes, STEP, 0%, 10/15/07 500,000 450
Sr. Notes, 7.50%, 11/1/08 125,000 124
</TABLE>
28
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
R & B Falcon, Sr. Notes, 6.95%, 4/15/08 800,000 $ 740
Raytheon, Sr. Notes, 5.70%, 11/1/03 1,500,000 1,457
Repap New Brunswick, Sr. Sec. Notes, 11.50%, 6/1/04 150,000 170
Rogers Cablesystems, Sr. Sec. 2nd Priority Notes
10.00%, 3/15/05 250,000 264
Safelite Glass, Sr. Sub. Notes, 9.875%, 12/15/06 * 200,000 2
Salomon Brothers Mortgage Securities VII
7.455%, 4/18/10 900,000 928
Securitized Asset Sales, 7.41%, 9/25/24 1,250,000 1,236
Sinclair Broadcast Group, Sr. Sub. Notes, 8.75%, 12/15/07 475,000 408
Sprint, Sr. Notes, 6.125%, 11/15/08 850,000 757
State Street, Sr. Sub. Notes, 7.65%, 6/15/10 890,000 911
Station Casinos, Sr. Sub. Notes, 10.125%, 3/15/06 400,000 408
Telecorp PCS, STEP, 0%, 4/15/09 225,000 143
Telefonica Europe, 7.75%, 9/15/10 930,000 927
Textron, Sr. Notes, 6.375%, 7/15/04 1,800,000 1,773
Time Warner Telecom, Sr. Notes, 9.75%, 7/15/08 100,000 84
Toyota Auto Receivables Owner Trust, 6.80%, 4/15/07 1,400,000 1,412
Triton PCS, STEP, 0%, 5/1/08 450,000 333
United Air Lines, 9.20%, 3/22/08, ETC 197,491 212
United International Holdings, Sr. Disc. Notes
STEP, 0%, 2/15/08 850,000 348
Universal Compression, Sr. Disc. Notes
STEP, 0%, 2/15/08 1,675,000 1,340
Venture Holdings Trust, Sr. Sub. Notes, 9.50%, 7/1/05 400,000 192
VoiceStream Wireless, Sr. Notes, 10.375%, 11/15/09 1,000,000 1,070
Waste Management, 7.70%, 10/1/02 1,000,000 989
Wells Fargo, Sr. Notes, 7.25%, 8/24/05 1,650,000 1,682
Westamerica Bank, Sr. Sub. Notes, 6.99%, 9/30/03 250,000 243
Western Wireless, Sr. Sub. Notes, 10.50%, 2/1/07 225,000 232
Westinghouse Air Brake, Sr. Notes, 9.375%, 6/15/05 450,000 432
Westpoint Stevens, Sr. Notes, 7.875%, 6/15/05 375,000 266
Worldcom, 8.25%, 5/15/10 1,800,000 1,871
Yankeenets Capital, Sr. Notes, (144a), 12.75%, 3/1/07 + 275,000 271
Ziff Davis Media, Sr. Sub. Notes, (144a), 12.00%, 7/15/10 + 300,000 249
Total Corporate Bonds (Cost $111,545) 105,749
29
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 9.5%
Federal Home Loan Mortgage
6.00%, 2/15/11 - 11/1/25 $ 6,963,212 6,767
6.50%, 10/1/08 - 3/15/11 3,409,744 3,365
7.00%, 10/1/08 - 11/1/30 2,919,461 2,893
7.50%, 12/1/29 48,756 49
8.00%, 1/1/25 51,163 52
9.00%, 11/1/04 8,603 9
Federal National Mortgage Assn.
6.50%, 8/1/23 56,891 56
7.00%, 4/18/22 - 1/1/26 2,797,569 2,789
7.50%, 11/1/07 - 9/1/30 4,446,679 4,478
8.00%, 5/1/07 - 6/1/10 47,640 48
8.50%, 8/1/06 - 11/1/21 26,380 27
9.00%, 5/1/01 1,958 2
REMIC
6.50%, 3/20/23 1,514,899 1,496
7.25%, 5/25/20 2,293,371 2,312
8.00%, 2/25/07 47,098 48
Government National Mortgage Assn.
I
6.00%, 5/15/17 - 12/15/28 765,092 732
6.50%, 1/15/26 - 2/15/29 6,269,062 6,135
7.00%, 4/15/24 - 1/15/29 20,775,521 20,702
7.50%, 2/15/16 - 12/15/29 4,408,521 4,464
8.00%, 3/15/22 - 11/15/24 447,559 460
II
7.00%, 9/20/27 - 4/20/30 2,659,560 2,641
8.00%, 10/20/25 44,269 45
Total U.S. Government Mortgage-Backed Securities -----------
(Cost $ 55,488) 59,570
-----------
30
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
U.S. GOVERNMENT OBLIGATIONS/
AGENCIES 11.6%
Federal Farm Credit
5.25%, 5/1/02 $ 8,350,000 $ 8,242
Federal Home Loan Bank
4.96%, 10/7/05 4,100,000 3,874
6.29%, 6/9/05 600,000 600
Federal Home Loan Mortgage
5.95%, 1/19/06 4,400,000 4,329
Federal National Mortgage Assn.
6.50%, 8/15/04 2,000,000 2,019
Government Trust Certificates
9.25%, 11/15/01 15,457 16
Resolution Funding
8.125%, 10/15/19 210,000 257
Tennessee Valley Authority
5.88%, 4/1/36 2,000,000 1,976
6.235%, 7/15/45 2,000,000 2,003
U.S. Treasury Bonds
5.50%, 8/15/28 1,600,000 1,554
6.125%, 11/15/27 6,650,000 7,008
6.75%, 8/15/26 12,500,000 14,167
7.50%, 11/15/16 3,000,000 3,548
U.S. Treasury Inflation-Indexed Notes
3.375%, 1/15/07 1,096,130 1,069
3.625%, 7/15/02 3,741,167 3,740
U.S. Treasury Notes
4.75%, 11/15/08 14,695,000 14,003
4.875%, 3/31/01 3,320,000 3,305
6.50%, 8/15/05 1,000,000 1,041
----------
Total U.S. Government Obligations/Agencies 72,751
(Cost $76,092) ----------
SHORT-TERM INVESTMENTS 4.3%
Money Market Funds 4.3%
Reserve Investment Fund, 6.70% # 27,188,744 27,189
----------
Total Short-Term Investments 27,189
(Cost $27,189) ----------
31
<PAGE>
T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Value
--------------------------------------------------------------------------------
In thousands
Total Investments in Securities
99.6% of Net Assets (Cost $592,568) $ 624,328
Other Assets Less Liabilities 2,574
--------------
NET ASSETS $ 626,902
==============
# Seven-day yield
+ Private Placement
* Non-income producing
ADR American Depository Receipt
ETC Equipment Trust Certificate
GDR Global Depository Receipt
RET 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 1.9% of net assets.
AUD Australian dollar
CHF Swiss franc
DKK Danish krone
EUR Euro
GBP British sterling
HKD Hong Kong dollar
JPY Japanese yen
MXN Mexican peso
MYR Malaysian ringgit
NOK Norwegian krone
NZD New Zealand dollar
SEK Swedish krona
SGD Singapore dollar
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Unaudited November 30, 2000
-------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value (cost $592,568) $ 624,328
Securities lending collateral 64,109
Other assets 7,847
Total assets 696,284
Liabilities
Obligation to return securities lending collateral 64,109
Other liabilities 5,273
Total liabilities 69,382
NET ASSETS $ 626,902
-------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 3,511
Accumulated net realized gain/loss - net of distributions 28,991
Net unrealized gain (loss) 31,820
Paid-in-capital applicable to 38,835,553 shares of
$0.0001 par value capital stock outstanding;
1,000,000,000 shares of the Corporation authorized 562,580
NET ASSETS $ 626,902
-------------
NET ASSET VALUE PER SHARE $ 16.14
-------------
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Unaudited
------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
6 Months
Ended
11/30/00
Investment Income (Loss)
Income
Interest $ 9,346
Dividend 3,030
Other 94
----------------
Total income 12,470
----------------
Expenses
Investment management 1,779
Shareholder servicing 1,103
Custody and accounting 111
Prospectus and shareholder reports 29
Registration 14
Legal and audit 7
Directors 3
Miscellaneous 2
Total expenses 3,048
Expenses paid indirectly (2)
Net expenses 3,046
Net investment income (loss) 9,424
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 8,957
Foreign currency transactions (52)
Net realized gain (loss) 8,905
Change in net unrealized gain or loss
Securities (11,766)
Other assets and liabilities
denominated in foreign currencies 70
Change in net unrealized gain or loss (11,696)
Net realized and unrealized gain (loss) (2,791)
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 6,633
================
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
Unaudited
--------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
11/30/00 5/31/00
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 9,424 $ 17,895
Net realized gain (loss) 8,905 28,032
Change in net unrealized gain or loss (11,696) (15,755)
Increase (decrease) in net assets from operations 6,633 30,172
Distributions to shareholders
Net investment income (9,361) (17,255)
Net realized gain - (14,884)
Decrease in net assets from distributions (9,361) (32,139)
Capital share transactions *
Shares sold 81,402 254,049
Distributions reinvested 9,306 31,960
Shares redeemed (72,934) (201,877)
Increase (decrease) in net assets from capital
share transactions 17,774 84,132
Net Assets
Increase (decrease) during period 15,046 82,165
Beginning of period 611,856 529,691
End of period $ 626,902 $ 611,856
=======================
*Share information
Shares sold 4,917 15,627
Distributions reinvested 566 2,007
Shares redeemed (4,405) (12,571)
Increase (decrease) in shares outstanding 1,078 5,063
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
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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 Balanced Fund
(the fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on July 29,
1994. The fund seeks the highest total return over time, consistent with an
emphasis on both capital growth and income, by investing in a diversified
portfolio typically consisting of about 60% stocks, 30% bonds, and 10% money
market securities.
The accompanying financial statements 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 BALANCED 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
37
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T. ROWE PRICE PERSONAL STRATEGY BALANCED 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 $61,684,000; aggregate
collateral consisted of $64,109,000 in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term and
U.S. government securities, aggregated $150,315,000 and $112,795,000,
respectively, for the six months ended November 30, 2000. Purchases and sales of
U.S. government securities aggregated $15,196,000 and $38,641,000, 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 $592,568,000.
Net unrealized gain aggregated $31,760,000 at period-end, of which $75,057,000
related to appreciated investments and $43,297,000 to depreciated investments.
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
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T. ROWE PRICE PERSONAL STRATEGY BALANCED FUND
--------------------------------------------------------------------------------
manager provides for an annual investment management fee, of which $297,000 was
payable at November 30, 2000. The fee is computed daily and paid monthly, and
consists of an individual fund fee equal to 0.25% 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 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.
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 $1,033,000 for the six months
ended November 30, 2000, of which $172,000 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 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 $ 732,000 and are reflected as interest income in the accompanying
Statement of Operations.
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
C11-059 11/30/00
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