T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
May
31,
2023
(Unaudited)
1
Portfolio
of
Investments
‡
Shares
$
Value
(Cost
and
value
in
$000s)
‡
COMMON
STOCKS
99.5%
COMMUNICATION
SERVICES
7.9%
Entertainment
0.5%
Electronic
Arts
8,500
1,088
Endeavor
Group
Holdings,
Class
A (1)
6,100
137
Netflix (1)
4,900
1,936
Spotify
Technology (1)
1,556
232
Take-Two
Interactive
Software (1)
1,152
159
3,552
Interactive
Media
&
Services
6.6%
Alphabet,
Class
C (1)
376,080
46,397
Match
Group (1)
14,012
483
Meta
Platforms,
Class
A (1)
15,500
4,103
50,983
Media
0.6%
Fox,
Class
B
8,200
239
Omnicom
Group
12,800
1,129
Trade
Desk,
Class
A (1)
45,300
3,175
4,543
Wireless
Telecommunication
Services
0.2%
T-Mobile
U.S. (1)
10,273
1,410
1,410
Total
Communication
Services
60,488
CONSUMER
DISCRETIONARY
12.6%
Automobile
Components
0.0%
Aptiv (1)
1,410
124
Mobileye
Global,
Class
A (1)
3,000
134
258
Automobiles
1.2%
Ferrari
2,240
642
Tesla (1)
44,175
9,009
9,651
Broadline
Retail
3.8%
Amazon.com (1)
227,860
27,475
Etsy (1)
1,500
122
MercadoLibre (1)
1,600
1,983
Ollie's
Bargain
Outlet
Holdings (1)
1,892
104
29,684
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
2
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Distributors
0.1%
Pool
2,481
785
785
Diversified
Consumer
Services
0.1%
Bright
Horizons
Family
Solutions (1)
700
60
Duolingo (1)
1,000
150
Service
Corp.
International
12,880
819
1,029
Hotels,
Restaurants
&
Leisure
3.0%
Airbnb,
Class
A (1)
13,472
1,479
Booking
Holdings (1)
1,007
2,526
Caesars
Entertainment (1)
2,500
102
Chipotle
Mexican
Grill (1)
2,600
5,399
Churchill
Downs
2,600
353
Darden
Restaurants
2,100
333
Domino's
Pizza
3,337
967
DraftKings,
Class
A (1)
6,000
140
Hilton
Worldwide
Holdings
41,000
5,581
Hyatt
Hotels,
Class
A
500
54
MGM
Resorts
International
40,400
1,587
Papa
John's
International
1,400
98
Restaurant
Brands
International (2)
15,802
1,152
Starbucks
20,275
1,980
Vail
Resorts
500
122
Wingstop
400
80
Wynn
Resorts
1,300
128
Yum!
Brands
12,500
1,609
23,690
Household
Durables
0.1%
NVR (1)
150
833
833
Leisure
Products
0.0%
Mattel (1)
2,000
35
35
Specialty
Retail
3.5%
AutoZone (1)
1,204
2,874
Burlington
Stores (1)
900
136
Chewy,
Class
A (1)
4,000
118
Five
Below (1)
5,300
914
Floor
&
Decor
Holdings,
Class
A (1)
1,000
91
Home
Depot
25,840
7,324
O'Reilly
Automotive (1)
7,053
6,371
RH (1)
200
49
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
3
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Ross
Stores
11,200
1,161
TJX
31,077
2,386
Tractor
Supply
15,752
3,302
Ulta
Beauty (1)
5,400
2,213
Williams-Sonoma
1,400
159
27,098
Textiles,
Apparel
&
Luxury
Goods
0.8%
Lululemon
Athletica (1)
8,960
2,974
NIKE,
Class
B
30,749
3,236
Skechers
USA,
Class
A (1)
3,500
180
6,390
Total
Consumer
Discretionary
99,453
CONSUMER
STAPLES
4.2%
Beverages
2.4%
Brown-Forman,
Class
B
4,712
291
Celsius
Holdings (1)
1,500
188
Constellation
Brands,
Class
A
8,000
1,944
Diageo,
ADR (2)
34,800
5,847
Keurig
Dr
Pepper
39,615
1,233
Monster
Beverage (1)
33,456
1,961
PepsiCo
38,800
7,075
18,539
Consumer
Staples
Distribution
&
Retail
1.0%
BJ's
Wholesale
Club
Holdings (1)
42,300
2,650
Casey's
General
Stores
500
113
Dollar
General
19,248
3,870
Dollar
Tree (1)
1,000
135
Performance
Food
Group (1)
22,500
1,244
8,012
Food
Products
0.5%
Darling
Ingredients (1)
12,500
792
Hershey
10,583
2,748
Tyson
Foods,
Class
A
900
46
3,586
Household
Products
0.0%
Church
&
Dwight
919
85
85
Personal
Care
Products
0.3%
elf
Beauty (1)
800
83
Estee
Lauder,
Class
A
11,200
2,061
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
4
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Kenvue (1)
5,431
137
2,281
Total
Consumer
Staples
32,503
ENERGY
1.2%
Energy
Equipment
&
Services
0.1%
Halliburton
34,200
980
980
Oil,
Gas
&
Consumable
Fuels
1.1%
APA
1,800
57
Cheniere
Energy
9,100
1,272
Coterra
Energy
29,000
674
Devon
Energy
41,600
1,918
Diamondback
Energy
2,100
267
Hess
3,500
443
Magnolia
Oil
&
Gas,
Class
A
3,400
66
Matador
Resources
1,300
57
Pioneer
Natural
Resources
11,700
2,334
Venture
Global
LNG,
Series
B,
Acquisition
Date:
3/8/18,
Cost $15 (1)(3)(4)
5
90
Venture
Global
LNG,
Series
C,
Acquisition
Date:
10/16/17
-
3/8/18,
Cost $216 (1)(3)(4)
58
1,044
8,222
Total
Energy
9,202
FINANCIALS
9.5%
Banks
0.0%
NU
Holdings,
Class
A (1)
7,500
50
50
Capital
Markets
2.6%
BlackRock
2,600
1,710
Blue
Owl
Capital
50,447
517
Cboe
Global
Markets
6,679
884
Charles
Schwab
23,083
1,216
CME
Group
7,310
1,307
FactSet
Research
Systems
1,200
462
LPL
Financial
Holdings
4,800
935
MarketAxess
Holdings
3,760
1,024
Moody's
4,961
1,572
Morningstar
200
41
MSCI
6,600
3,106
S&P
Global
15,437
5,672
Tradeweb
Markets,
Class
A
28,140
1,884
20,330
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
5
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Consumer
Finance
0.0%
Discover
Financial
Services
500
51
51
Financial
Services
6.1%
Apollo
Global
Management
31,000
2,072
Block (1)
7,000
423
Euronet
Worldwide (1)
1,054
117
Fiserv (1)
26,000
2,917
FleetCor
Technologies (1)
6,100
1,382
Mastercard,
Class
A
43,700
15,951
Visa,
Class
A
110,800
24,490
WEX (1)
667
111
47,463
Insurance
0.8%
Arthur
J
Gallagher
6,500
1,302
Assurant
800
96
Globe
Life
1,400
144
Hartford
Financial
Services
Group
25,000
1,713
Marsh
&
McLennan
12,500
2,165
Progressive
6,333
810
Ryan
Specialty
Group
Holdings (1)
3,700
151
6,381
Total
Financials
74,275
HEALTH
CARE
10.8%
Biotechnology
1.5%
Alnylam
Pharmaceuticals (1)
2,501
463
Apellis
Pharmaceuticals (1)
1,700
146
Argenx,
ADR (1)
433
168
Ascendis
Pharma,
ADR (1)
300
26
BioMarin
Pharmaceutical (1)
1,513
132
BioNTech,
ADR
7,528
791
Blueprint
Medicines (1)
200
11
Exact
Sciences (1)
2,300
188
Genmab,
ADR (1)
24,588
964
Incyte (1)
1,359
84
Karuna
Therapeutics (1)
500
113
Legend
Biotech,
ADR (1)
1,500
96
Moderna (1)
2,000
256
Neurocrine
Biosciences (1)
1,945
174
Regeneron
Pharmaceuticals (1)
4,200
3,089
Sarepta
Therapeutics (1)
1,900
235
Vertex
Pharmaceuticals (1)
14,199
4,594
11,530
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
6
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Health
Care
Equipment
&
Supplies
1.6%
Align
Technology (1)
2,800
791
Dexcom (1)
32,360
3,795
IDEXX
Laboratories (1)
2,262
1,051
Inspire
Medical
Systems (1)
500
146
Insulet (1)
1,873
514
Intuitive
Surgical (1)
8,991
2,768
Lantheus
Holdings (1)
2,500
216
Novocure (1)
3,000
215
Penumbra (1)
1,300
400
QuidelOrtho (1)
300
26
ResMed
6,600
1,391
Shockwave
Medical (1)
3,300
908
STERIS
865
173
Teleflex
400
94
12,488
Health
Care
Providers
&
Services
3.8%
Acadia
Healthcare (1)
1,300
92
Centene (1)
11,249
702
CVS
Health
3,500
238
Elevance
Health
7,747
3,469
HCA
Healthcare
2,600
687
Humana
3,053
1,532
McKesson
13,500
5,277
Molina
Healthcare (1)
7,514
2,058
UnitedHealth
Group
32,600
15,884
29,939
Health
Care
Technology
0.2%
Veeva
Systems,
Class
A (1)
7,692
1,274
1,274
Life
Sciences
Tools
&
Services
1.9%
Agilent
Technologies
15,008
1,736
Bio-Rad
Laboratories,
Class
A (1)
900
336
Bio-Techne
7,500
613
Bruker
3,600
249
Charles
River
Laboratories
International (1)
1,500
290
Danaher
11,300
2,595
Illumina (1)
500
98
IQVIA
Holdings (1)
4,300
847
Mettler-Toledo
International (1)
2,013
2,661
Repligen (1)
3,700
621
Thermo
Fisher
Scientific
9,019
4,586
West
Pharmaceutical
Services
1,100
368
15,000
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
7
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Pharmaceuticals
1.8%
Eli
Lilly
25,600
10,994
Royalty
Pharma,
Class
A
3,200
105
Zoetis
18,568
3,027
14,126
Total
Health
Care
84,357
INDUSTRIALS
&
BUSINESS
SERVICES
8.0%
Aerospace
&
Defense
0.8%
Axon
Enterprise (1)
5,500
1,061
BWX
Technologies
1,400
84
HEICO
1,300
201
Hexcel
1,300
90
Howmet
Aerospace
4,000
171
Huntington
Ingalls
Industries
500
101
L3Harris
Technologies
3,617
636
Northrop
Grumman
3,700
1,611
TransDigm
Group
3,428
2,652
6,607
Air
Freight
&
Logistics
0.5%
Expeditors
International
of
Washington
1,000
110
United
Parcel
Service,
Class
B
23,126
3,862
3,972
Building
Products
0.3%
A.O.
Smith
1,400
89
Allegion
1,700
178
Carrier
Global
1,900
78
Fortune
Brands
Innovations
1,800
109
Trane
Technologies
8,400
1,371
Trex (1)
2,700
139
1,964
Commercial
Services
&
Supplies
1.7%
Cintas
8,800
4,155
Clean
Harbors (1)
3,100
435
Copart (1)
37,400
3,276
RB
Global
2,000
104
Republic
Services
6,500
921
Rollins
21,000
826
Waste
Connections
24,210
3,308
13,025
Construction
&
Engineering
0.3%
Quanta
Services
8,300
1,474
Valmont
Industries
1,700
446
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
8
Shares
$
Value
(Cost
and
value
in
$000s)
‡
WillScot
Mobile
Mini
Holdings (1)
3,400
146
2,066
Electrical
Equipment
0.4%
AMETEK
687
100
Eaton
10,500
1,847
Hubbell
1,600
452
Rockwell
Automation
1,972
549
2,948
Ground
Transportation
1.2%
Canadian
Pacific
Kansas
City
21,188
1,615
JB
Hunt
Transport
Services
1,809
302
Landstar
System
600
105
Old
Dominion
Freight
Line
5,367
1,666
Uber
Technologies (1)
52,000
1,972
Union
Pacific
18,200
3,504
9,164
Industrial
Conglomerates
0.1%
Roper
Technologies
1,842
837
837
Machinery
0.6%
Cummins
3,663
749
Deere
9,347
3,234
Graco
1,200
92
IDEX
425
85
Middleby (1)
700
92
Otis
Worldwide
1,000
79
PACCAR
2,000
138
Toro
1,800
176
Westinghouse
Air
Brake
Technologies
800
74
4,719
Passenger
Airlines
0.0%
Alaska
Air
Group (1)
5,000
224
Southwest
Airlines
2,000
60
United
Airlines
Holdings (1)
1,700
81
365
Professional
Services
1.4%
Automatic
Data
Processing
10,500
2,194
Booz
Allen
Hamilton
Holding
1,626
164
Broadridge
Financial
Solutions
8,161
1,197
Ceridian
HCM
Holding (1)
3,063
190
CoStar
Group (1)
16,380
1,301
Equifax
5,214
1,088
FTI
Consulting (1)
500
94
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
9
Shares
$
Value
(Cost
and
value
in
$000s)
‡
KBR
2,900
171
Paychex
5,300
556
Paycom
Software
6,848
1,918
Paycor
HCM (1)(2)
1,543
34
Paylocity
Holding (1)
2,000
346
SS&C
Technologies
Holdings
1,700
93
TransUnion
2,600
187
Verisk
Analytics
7,681
1,683
11,216
Trading
Companies
&
Distributors
0.7%
Fastenal
27,600
1,486
Ferguson
10,600
1,536
SiteOne
Landscape
Supply (1)
1,500
207
United
Rentals
3,300
1,102
Watsco
3,268
1,060
5,391
Total
Industrials
&
Business
Services
62,274
INFORMATION
TECHNOLOGY
43.2%
Communications
Equipment
0.6%
Arista
Networks (1)
17,400
2,894
Motorola
Solutions
6,500
1,833
4,727
Electronic
Equipment,
Instruments
&
Components
1.2%
Amphenol,
Class
A
67,794
5,115
CDW
16,015
2,750
Cognex
1,900
104
Keysight
Technologies (1)
2,418
391
Littelfuse
393
101
TE
Connectivity
700
86
Zebra
Technologies,
Class
A (1)
2,346
616
9,163
IT
Services
1.8%
Accenture,
Class
A
24,836
7,598
EPAM
Systems (1)
700
179
Gartner (1)
7,600
2,606
Globant (1)
300
55
MongoDB (1)
3,100
911
Shopify,
Class
A (1)
35,000
2,001
Snowflake,
Class
A (1)
3,046
504
VeriSign (1)
192
43
13,897
Semiconductors
&
Semiconductor
Equipment
10.9%
Advanced
Micro
Devices (1)
37,051
4,380
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
10
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Analog
Devices
19,575
3,478
Enphase
Energy (1)
7,600
1,322
Entegris
31,060
3,269
First
Solar (1)
700
142
KLA
26,776
11,862
Lam
Research
4,260
2,627
Lattice
Semiconductor (1)
25,854
2,102
Marvell
Technology
2,800
164
Microchip
Technology
58,822
4,427
MKS
Instruments
500
49
Monolithic
Power
Systems
9,912
4,856
NVIDIA
96,000
36,321
ON
Semiconductor (1)
29,500
2,466
QUALCOMM
37,575
4,261
Silicon
Laboratories (1)
600
84
Skyworks
Solutions
1,007
104
Synaptics (1)
200
17
Taiwan
Semiconductor
Manufacturing,
ADR
21,800
2,149
Teradyne
3,000
301
84,381
Software
18.2%
Adobe (1)
12,500
5,222
ANSYS (1)
2,000
647
AppLovin,
Class
A (1)(2)
500
13
Aspen
Technology (1)
400
66
Atlassian,
Class
A (1)
5,391
975
Autodesk (1)
7,791
1,553
Bentley
Systems,
Class
B
5,949
290
BILL
Holdings (1)
4,592
476
Cadence
Design
Systems (1)
18,789
4,339
Canva,
Acquisition
Date:
8/16/21
-
11/4/21,
Cost $719 (1)(3)(4)
422
211
Confluent,
Class
A (1)
2,000
64
Crowdstrike
Holdings,
Class
A (1)
14,054
2,251
Databricks,
Acquisition
Date:
7/24/20
-
8/28/20,
Cost $82 (1)(3)(4)
5,133
308
Datadog,
Class
A (1)
8,249
783
Descartes
Systems
Group (1)
3,200
247
DoubleVerify
Holdings (1)
2,400
84
Dynatrace (1)
5,448
278
Fair
Isaac (1)
700
551
Fortinet (1)
83,000
5,671
HubSpot (1)
1,600
829
Informatica,
Class
A (1)
3,000
53
Intuit
14,500
6,077
Manhattan
Associates (1)
6,400
1,161
Microsoft
252,125
82,795
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
11
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Monday.com (1)
500
90
nCino (1)
1,000
28
Palo
Alto
Networks (1)
18,800
4,012
Procore
Technologies (1)
1,200
73
PTC (1)
9,400
1,263
Salesforce (1)
6,595
1,473
Samsara,
Class
A (1)
6,500
125
SentinelOne,
Class
A (1)
6,000
128
ServiceNow (1)
8,800
4,794
Snyk,
Acquisition
Date:
9/3/21,
Cost $144 (1)(3)(4)
10,031
115
Socure,
Acquisition
Date:
12/22/21,
Cost $159 (1)(3)(4)
9,912
74
Synopsys (1)
17,828
8,111
Tanium,
Class
B,
Acquisition
Date:
9/24/20,
Cost $52 (1)(3)(4)
4,598
20
Tyler
Technologies (1)
6,294
2,498
Workday,
Class
A (1)
14,500
3,074
Workiva (1)
487
47
Zscaler (1)
4,000
542
141,411
Technology
Hardware,
Storage
&
Peripherals
10.5%
Apple
457,000
81,003
Pure
Storage,
Class
A (1)
3,000
87
Super
Micro
Computer (1)
800
179
81,269
Total
Information
Technology
334,848
MATERIALS
1.4%
Chemicals
0.9%
Air
Products
&
Chemicals
2,400
646
Albemarle
4,400
851
CF
Industries
Holdings
5,000
308
Corteva
19,300
1,032
Linde
4,600
1,627
Nutrien
2,100
111
PPG
Industries
2,600
341
RPM
International
1,300
104
Sherwin-Williams
9,314
2,121
7,141
Construction
Materials
0.3%
Vulcan
Materials
10,000
1,955
1,955
Containers
&
Packaging
0.1%
Avery
Dennison
1,582
255
Ball
15,300
783
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
12
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Sealed
Air
2,200
83
1,121
Metals
&
Mining
0.1%
BHP
Group,
ADR (2)
12,000
659
Steel
Dynamics
2,000
184
843
Total
Materials
11,060
REAL
ESTATE
0.7%
Industrial
Real
Estate
Investment
Trusts
0.0%
Rexford
Industrial
Realty,
REIT
500
27
27
Residential
Real
Estate
Investment
Trusts
0.1%
Equity
LifeStyle
Properties,
REIT
13,500
853
853
Retail
Real
Estate
Investment
Trusts
0.1%
Simon
Property
Group,
REIT
4,000
421
421
Specialized
Real
Estate
Investment
Trusts
0.5%
CubeSmart,
REIT
35,500
1,577
Lamar
Advertising,
Class
A,
REIT
17,700
1,591
SBA
Communications,
REIT
3,900
865
4,033
Total
Real
Estate
5,334
UTILITIES
0.0%
Independent
Power
&
Renewable
Electricity
Producer
0.0%
Vistra
2,000
48
Total
Utilities
48
Total
Common
Stocks
(Cost
$376,732)
773,842
CONVERTIBLE
PREFERRED
STOCKS
0.4%
HEALTH
CARE
0.0%
Biotechnology
0.0%
Caris
Life
Sciences,
Series
D,
Acquisition
Date:
5/11/21,
Cost $137 (1)(3)(4)
16,937
90
Total
Health
Care
90
INFORMATION
TECHNOLOGY
0.4%
Software
0.4%
Canva,
Series
A,
Acquisition
Date:
11/4/21,
Cost $43 (1)(3)(4)
25
13
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
13
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Databricks,
Series
F,
Acquisition
Date:
10/22/19,
Cost $223 (1)(3)
(4)
15,573
934
Databricks,
Series
G,
Acquisition
Date:
2/1/21,
Cost $252 (1)(3)(4)
4,257
256
Databricks,
Series
H,
Acquisition
Date:
8/31/21,
Cost $818 (1)(3)
(4)
11,136
668
DataRobot,
Series
G,
Acquisition
Date:
6/11/21,
Cost $186 (1)(3)
(4)
6,806
26
Rappi,
Series
E,
Acquisition
Date:
9/8/20,
Cost $523 (1)(3)(4)
8,757
315
Snyk,
Series
F,
Acquisition
Date:
9/3/21,
Cost $240 (1)(3)(4)
16,810
193
Socure,
Series
A,
Acquisition
Date:
12/22/21,
Cost $194 (1)(3)(4)
12,046
90
Socure,
Series
A-1,
Acquisition
Date:
12/22/21,
Cost $159 (1)(3)(4)
9,887
74
Socure,
Series
B,
Acquisition
Date:
12/22/21,
Cost $3 (1)(3)(4)
178
1
Socure,
Series
E,
Acquisition
Date:
10/27/21,
Cost $368 (1)(3)(4)
22,915
172
Tanium,
Series
G,
Acquisition
Date:
8/26/15,
Cost $141 (1)(3)(4)
28,431
125
Total
Information
Technology
2,867
Total
Convertible
Preferred
Stocks
(Cost
$3,286)
2,957
SHORT-TERM
INVESTMENTS
0.0%
Money
Market
Funds
0.0%
T.
Rowe
Price
Government
Reserve
Fund,
5.11% (5)(6)
138,512
139
Total
Short-Term
Investments
(Cost
$139)
139
SECURITIES
LENDING
COLLATERAL
0.8%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY
0.8%
Money
Market
Funds
0.8%
T.
Rowe
Price
Government
Reserve
Fund,
5.11% (5)(6)
6,074,888
6,075
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
6,075
Total
Securities
Lending
Collateral
(Cost
$6,075)
6,075
Total
Investments
in
Securities
100.7%
(Cost
$386,232)
$
783,013
Other
Assets
Less
Liabilities
(0.7)%
(
5,306
)
Net
Assets
100.0%
$
777,707
‡
Shares
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Non-income
producing
(2)
All
or
a
portion
of
this
security
is
on
loan
at
May
31,
2023.
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
14
.
.
.
.
.
.
.
.
.
.
(3)
Security
cannot
be
offered
for
public
resale
without
first
being
registered
under
the
Securities
Act
of
1933
and
related
rules
("restricted
security").
Acquisition
date
represents
the
day
on
which
an
enforceable
right
to
acquire
such
security
is
obtained
and
is
presented
along
with
related
cost
in
the
security
description.
The
fund
may
have
registration
rights
for
certain
restricted
securities.
Any
costs
related
to
such
registration
are
generally
borne
by
the
issuer.
The
aggregate
value
of
restricted
securities
(excluding
144A
holdings)
at
period
end
amounts
to
$4,819
and
represents
0.6%
of
net
assets.
(4)
Level
3
in
fair
value
hierarchy.
(5)
Seven-day
yield
(6)
Affiliated
Companies
ADR
American
Depositary
Receipts
REIT
A
domestic
Real
Estate
Investment
Trust
whose
distributions
pass-through
with
original
tax
character
to
the
shareholder
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
15
The
accompanying
notes
are
an
integral
part
of
this
Portfolio
of
Investments.
AFFILIATED
COMPANIES
($000s)
The
fund
may
invest
in
certain
securities
that
are
considered
affiliated
companies.
As
defined
by
the
1940
Act,
an
affiliated
company
is
one
in
which
the
fund
owns
5%
or
more
of
the
outstanding
voting
securities,
or
a
company
that
is
under
common
ownership
or
control.
The
following
securities
were
considered
affiliated
companies
for
all
or
some
portion
of
the
three
months
ended
May
31,
2023.
Net
realized
gain
(loss),
investment
income,
change
in
net
unrealized
gain/loss,
and
purchase
and
sales
cost
reflect
all
activity
for
the
period
then
ended.
Affiliate
Net
Realized
Gain
(Loss)
Change
in
Net
Unrealized
Gain/Loss
Investment
Income
T.
Rowe
Price
Government
Reserve
Fund,
5.11%
$
—
$
—
$
7
++
Totals
$
—
#
$
—
$
7
+
Supplementary
Investment
Schedule
Affiliate
Value
02/28/23
Purchase
Cost
Sales
Cost
Value
05/31/23
T.
Rowe
Price
Government
Reserve
Fund,
5.11%
$
7,761
¤
¤
$
6,214
Total
$
6,214
^
#
Capital
gain
distributions
from
underlying
Price
funds
represented
$0
of
the
net
realized
gain
(loss).
++
Excludes
earnings
on
securities
lending
collateral,
which
are
subject
to
rebates
and
fees.
+
Investment
income
comprised
$7
of
dividend
income
and
$0
of
interest
income.
¤
Purchase
and
sale
information
not
shown
for
cash
management
funds.
^
The
cost
basis
of
investments
in
affiliated
companies
was
$6,214.
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Notes
to
Portfolio
of
Investments
16
T.
Rowe
Price
Tax-Efficient
Equity
Fund (the
fund) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act)
as
an
open-end
management
investment
company
and
follows
accounting
and
reporting
guidance
of
the
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
Topic
946.
The
accompanying
Portfolio
of
Investments
was
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP).
For
additional
information
on
the
fund’s
significant
accounting
policies
and
investment
related
disclosures,
please
refer
to
the
fund’s most
recent
semiannual
or
annual
shareholder
report
and
its
prospectus.
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business,
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
17
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Equity
securities,
including
exchange-traded
funds, listed
or
regularly
traded
on
a
securities
exchange
or
in
the
over-the-counter
(OTC)
market
are
valued
at
the
last
quoted
sale
price
or,
for
certain
markets,
the
official
closing
price
at
the
time
the
valuations
are
made.
OTC
Bulletin
Board
securities
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices.
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
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
for
domestic
securities.
Investments
in
mutual
funds
are
valued
at
the
mutual
fund’s
closing
NAV
per
share
on
the
day
of
valuation.
Investments
for
which
market
quotations are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee.
The
Valuation
Designee
has
adopted
methodologies
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
or
deemed
unreliable,
including
the
use
of
other
pricing
sources.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Designee typically
will
afford
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
18
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
May
31,
2023
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
OTHER
MATTERS
Unpredictable
events
such
as
environmental
or
natural
disasters,
war,
terrorism,
pandemics,
outbreaks
of
infectious
diseases,
and
similar
public
health
threats
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
the fund
invests.
Certain
events
may
cause
instability
across
global
markets,
including
reduced
liquidity
and
disruptions
in
trading
markets,
while
some
events
may
affect
certain
geographic
regions,
countries,
sectors,
and
industries
more
significantly
than
others,
and
exacerbate
other
pre-existing
political,
social,
and
economic
risks.
Since
2020,
a
novel
strain
of
coronavirus
(COVID-19)
has
resulted
in
disruptions
to
global
business
activity
and
caused
significant
volatility
and
declines
in
global
financial
markets.
In
February
2022,
Russian
forces
entered
Ukraine
and
commenced
an
armed
conflict
leading
to
economic
sanctions
being
imposed
on
Russia
and
certain
of
its
citizens,
creating
impacts
on
Russian-related
stocks
and
debt
and
greater
volatility
in
global
markets.
In
March
2023,
the
collapse
of
some
US
regional
and
global
banks
as
well
as
overall
concerns
around
the
soundness
and
stability
of
the
global
banking
sector
has
sparked
concerns
of
a
broader
financial
crisis
impacting
the
overall
global
banking
sector.
In
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Common
Stocks
$
771,980
$
—
$
1,862
$
773,842
Convertible
Preferred
Stocks
—
—
2,957
2,957
Short-Term
Investments
139
—
—
139
Securities
Lending
Collateral
6,075
—
—
6,075
Total
$
778,194
$
—
$
4,819
$
783,013
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
19
certain
cases,
government
agencies
have
assumed
control
or
otherwise
intervened
in
the
operations
of
certain
banks
due
to
liquidity
and
solvency
concerns.
The
extent
of
impact
of
these
events
on
the
US
and
global
markets
is
highly
uncertain.
These
are
recent
examples
of
global
events
which
may
have
a
negative
impact
on
the
values
of
certain
portfolio
holdings
or
the
fund’s
overall
performance.
Management
is
actively
monitoring
the
risks
and
financial
impacts
arising
from
these
events.
F136-054Q1
05/23