T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
September
30,
2023
(Unaudited)
1
Portfolio
of
Investments
‡
Shares
$
Value
(Cost
and
value
in
$000s)
‡
COMMON
STOCKS
99.0%
COMMUNICATION
SERVICES
4.5%
Entertainment
1.9%
Electronic
Arts
31,000
3,732
Endeavor
Group
Holdings,
Class
A
107,300
2,135
ROBLOX,
Class
A (1)(2)
323,000
9,354
Spotify
Technology (1)
106,373
16,450
Take-Two
Interactive
Software (1)
21,453
3,012
34,683
Interactive
Media
&
Services
0.9%
Match
Group (1)
150,730
5,905
Pinterest,
Class
A (1)
416,400
11,255
17,160
Media
1.7%
Omnicom
Group
73,000
5,437
Trade
Desk,
Class
A (1)
346,108
27,048
32,485
Total
Communication
Services
84,328
CONSUMER
DISCRETIONARY
13.5%
Automobile
Components
0.2%
Aptiv (1)
27,372
2,698
Mobileye
Global,
Class
A (1)(2)
24,352
1,012
3,710
Broadline
Retail
1.1%
Coupang,
Class
A (1)
816,500
13,881
Etsy (1)
27,440
1,772
Global-e
Online (1)(2)
42,700
1,697
Ollie's
Bargain
Outlet
Holdings (1)
39,200
3,025
20,375
Distributors
0.6%
Genuine
Parts
14,859
2,145
Pool
27,200
9,686
11,831
Diversified
Consumer
Services
0.3%
Bright
Horizons
Family
Solutions (1)(2)
27,200
2,215
Duolingo (1)
12,400
2,057
Service
Corp
International
33,512
1,915
6,187
Hotels,
Restaurants
&
Leisure
5.9%
Caesars
Entertainment (1)
79,600
3,689
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
2
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Churchill
Downs
49,300
5,721
Darden
Restaurants
59,500
8,522
Domino's
Pizza
19,000
7,197
DoorDash,
Class
A (1)
162,700
12,930
DraftKings,
Class
A (1)
306,180
9,014
Hilton
Worldwide
Holdings
139,590
20,964
Hyatt
Hotels,
Class
A
16,700
1,771
MGM
Resorts
International
50,600
1,860
Restaurant
Brands
International (2)
62,500
4,164
Royal
Caribbean
Cruises (1)
36,500
3,363
Vail
Resorts
7,200
1,598
Wingstop
35,200
6,330
Wynn
Resorts
27,422
2,534
Yum!
Brands
168,200
21,015
110,672
Household
Durables
0.6%
NVR (1)
1,769
10,549
10,549
Specialty
Retail
4.5%
AutoZone (1)
2,276
5,781
Burlington
Stores (1)
33,948
4,593
Chewy,
Class
A (1)(2)
50,084
915
Five
Below (1)
41,200
6,629
Floor
&
Decor
Holdings,
Class
A (1)(2)
46,700
4,226
RH (1)(2)
8,200
2,168
Ross
Stores
220,700
24,928
Tractor
Supply (2)
78,300
15,899
Ulta
Beauty (1)
37,695
15,057
Williams-Sonoma (2)
17,200
2,673
82,869
Textiles,
Apparel
&
Luxury
Goods
0.3%
Lululemon
Athletica (1)
7,220
2,784
Skechers
USA,
Class
A (1)
71,400
3,495
6,279
Total
Consumer
Discretionary
252,472
CONSUMER
STAPLES
2.6%
Beverages
1.1%
Brown-Forman,
Class
B
87,692
5,059
Celsius
Holdings (1)
62,900
10,794
Constellation
Brands,
Class
A
15,300
3,845
19,698
Consumer
Staples
Distribution
&
Retail
0.9%
BJ's
Wholesale
Club
Holdings (1)
63,474
4,530
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
3
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Casey's
General
Stores
9,789
2,658
Dollar
Tree (1)
18,200
1,938
Performance
Food
Group (1)
142,000
8,358
17,484
Food
Products
0.2%
Hershey
14,400
2,881
2,881
Household
Products
0.1%
Church
&
Dwight
23,483
2,152
2,152
Personal
Care
Products
0.3%
elf
Beauty (1)
34,700
3,811
Kenvue
107,900
2,167
5,978
Total
Consumer
Staples
48,193
ENERGY
4.5%
Energy
Equipment
&
Services
0.9%
Halliburton
312,482
12,655
Noble (2)
74,800
3,789
16,444
Oil,
Gas
&
Consumable
Fuels
3.6%
APA
176,000
7,234
Cheniere
Energy
148,500
24,645
Coterra
Energy
84,300
2,280
Devon
Energy
54,579
2,604
Diamondback
Energy
28,400
4,399
Hess
111,994
17,135
Magnolia
Oil
&
Gas,
Class
A
118,200
2,708
Matador
Resources
28,100
1,671
Pioneer
Natural
Resources
17,700
4,063
66,739
Total
Energy
83,183
FINANCIALS
10.2%
Banks
0.4%
NU
Holdings,
Class
A (1)
1,133,300
8,216
8,216
Capital
Markets
3.8%
Ares
Management,
Class
A
122,900
12,643
Blue
Owl
Capital (2)
243,000
3,149
Cboe
Global
Markets
16,193
2,529
FactSet
Research
Systems
26,350
11,522
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
4
Shares
$
Value
(Cost
and
value
in
$000s)
‡
LPL
Financial
Holdings
55,300
13,142
MarketAxess
Holdings
26,000
5,555
Morningstar
13,954
3,269
MSCI
30,400
15,598
Tradeweb
Markets,
Class
A
51,751
4,150
71,557
Financial
Services
3.3%
Apollo
Global
Management
366,800
32,924
Block,
Class
A (1)
122,400
5,417
Euronet
Worldwide (1)
30,600
2,429
FleetCor
Technologies (1)
51,108
13,050
Toast,
Class
A (1)(2)
179,600
3,364
WEX (1)
23,500
4,420
61,604
Insurance
2.7%
Arch
Capital
Group (1)
182,200
14,523
Arthur
J
Gallagher
92,700
21,129
Assurant
10,520
1,510
Globe
Life
22,300
2,425
Hartford
Financial
Services
Group
64,700
4,588
Ryan
Specialty
Group
Holdings (1)
135,800
6,573
50,748
Total
Financials
192,125
HEALTH
CARE
18.5%
Biotechnology
2.9%
Alnylam
Pharmaceuticals (1)
56,780
10,056
Apellis
Pharmaceuticals (1)(2)
86,363
3,285
Argenx,
ADR (1)
13,217
6,498
Ascendis
Pharma,
ADR (1)
19,960
1,869
BioNTech,
ADR (1)
16,728
1,817
Exact
Sciences (1)
78,018
5,322
Genmab,
ADR (1)
64,577
2,278
Incyte (1)
31,000
1,791
Karuna
Therapeutics (1)
22,453
3,797
Legend
Biotech,
ADR (1)
63,800
4,285
Neurocrine
Biosciences (1)
70,522
7,934
Sarepta
Therapeutics (1)
40,700
4,934
53,866
Health
Care
Equipment
&
Supplies
6.5%
Align
Technology (1)
47,500
14,503
Dexcom (1)
260,700
24,323
Globus
Medical,
Class
A (1)
75,400
3,744
IDEXX
Laboratories (1)
46,900
20,508
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
5
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Inspire
Medical
Systems (1)
28,100
5,576
Insulet (1)
58,106
9,267
Lantheus
Holdings (1)
43,900
3,050
Masimo (1)
39,000
3,419
Novocure (1)(2)
67,479
1,090
Penumbra (1)
31,003
7,500
ResMed
93,020
13,755
Shockwave
Medical (1)
32,300
6,431
STERIS
21,300
4,674
Teleflex
12,600
2,475
120,315
Health
Care
Providers
&
Services
2.5%
Acadia
Healthcare (1)
33,613
2,363
agilon
health (1)(2)
134,800
2,394
Cencora
134,100
24,134
McKesson
15,196
6,608
Molina
Healthcare (1)
30,224
9,910
Tenet
Healthcare (1)
24,000
1,582
46,991
Health
Care
Technology
1.1%
Veeva
Systems,
Class
A (1)
102,895
20,934
20,934
Life
Sciences
Tools
&
Services
5.5%
Agilent
Technologies
142,000
15,879
Bio-Rad
Laboratories,
Class
A (1)
8,511
3,051
Bio-Techne
152,200
10,360
Bruker
70,500
4,392
Charles
River
Laboratories
International (1)
9,500
1,862
Illumina (1)
27,900
3,830
IQVIA
Holdings (1)
111,700
21,977
Mettler-Toledo
International (1)
15,400
17,064
Repligen (1)
29,504
4,691
West
Pharmaceutical
Services
51,939
19,488
102,594
Total
Health
Care
344,700
INDUSTRIALS
&
BUSINESS
SERVICES
20.2%
Aerospace
&
Defense
2.0%
Axon
Enterprise (1)
56,800
11,303
BWX
Technologies
36,300
2,722
HEICO
43,300
7,011
Hexcel
34,200
2,228
Howmet
Aerospace
91,900
4,250
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
6
Shares
$
Value
(Cost
and
value
in
$000s)
‡
TransDigm
Group (1)
11,800
9,949
37,463
Air
Freight
&
Logistics
0.1%
Expeditors
International
of
Washington
22,700
2,602
2,602
Building
Products
1.6%
A.O.
Smith
34,000
2,248
Advanced
Drainage
Systems
23,000
2,618
Allegion
39,500
4,116
Carrier
Global
40,400
2,230
Fortune
Brands
Innovations
39,751
2,471
Trane
Technologies
52,400
10,633
Trex (1)
76,000
4,684
29,000
Commercial
Services
&
Supplies
3.9%
Cintas
51,000
24,531
Clean
Harbors (1)
50,900
8,519
Copart (1)
565,600
24,372
RB
Global (2)
47,100
2,944
Republic
Services
43,100
6,142
Rollins
56,293
2,101
Waste
Connections
34,275
4,603
73,212
Construction
&
Engineering
0.8%
Quanta
Services
50,414
9,431
Valmont
Industries
7,600
1,826
WillScot
Mobile
Mini
Holdings (1)
95,300
3,963
15,220
Electrical
Equipment
2.1%
AMETEK
40,037
5,916
Hubbell
25,900
8,117
Rockwell
Automation
84,712
24,217
38,250
Ground
Transportation
1.6%
JB
Hunt
Transport
Services
14,282
2,693
Landstar
System
13,600
2,406
Old
Dominion
Freight
Line
60,617
24,801
29,900
Machinery
0.9%
Graco
30,000
2,186
IDEX
10,375
2,158
Middleby (1)
13,978
1,789
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
7
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Otis
Worldwide
28,200
2,265
RBC
Bearings (1)(2)
8,173
1,914
Toro
61,247
5,090
Westinghouse
Air
Brake
Technologies
20,500
2,178
17,580
Passenger
Airlines
0.2%
Alaska
Air
Group (1)
34,800
1,290
United
Airlines
Holdings (1)
36,800
1,557
2,847
Professional
Services
5.0%
Booz
Allen
Hamilton
Holding
36,870
4,029
Broadridge
Financial
Solutions
63,571
11,383
Ceridian
HCM
Holding (1)
40,029
2,716
Equifax
21,900
4,012
FTI
Consulting (1)
15,292
2,728
KBR
68,700
4,049
Paychex
182,600
21,059
Paycom
Software
37,900
9,826
Paycor
HCM (1)(2)
82,800
1,890
Paylocity
Holding (1)
33,500
6,087
TransUnion
61,596
4,422
Verisk
Analytics
87,600
20,695
92,896
Trading
Companies
&
Distributors
2.0%
Fastenal
270,100
14,758
Ferguson
36,500
6,003
SiteOne
Landscape
Supply (1)
40,254
6,579
United
Rentals
14,600
6,491
Watsco (2)
10,700
4,042
37,873
Total
Industrials
&
Business
Services
376,843
INFORMATION
TECHNOLOGY
21.6%
Communications
Equipment
0.3%
Motorola
Solutions
22,800
6,207
6,207
Electronic
Equipment,
Instruments
&
Components
2.5%
Amphenol,
Class
A
233,987
19,653
CDW
79,278
15,995
Keysight
Technologies (1)
29,600
3,916
Littelfuse
8,700
2,152
TE
Connectivity
14,600
1,803
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
8
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Zebra
Technologies,
Class
A (1)
9,000
2,129
45,648
IT
Services
2.9%
Cloudflare,
Class
A (1)
223,600
14,096
EPAM
Systems (1)
8,872
2,269
Gartner (1)
46,606
16,014
Globant (1)
10,798
2,136
MongoDB (1)
47,655
16,482
VeriSign (1)
10,434
2,113
53,110
Semiconductors
&
Semiconductor
Equipment
4.8%
Enphase
Energy (1)
86,100
10,345
Entegris
69,300
6,508
First
Solar (1)
14,160
2,288
Lattice
Semiconductor (1)
136,479
11,728
Microchip
Technology
279,068
21,781
MKS
Instruments
17,400
1,506
Monolithic
Power
Systems
33,100
15,292
ON
Semiconductor (1)
72,938
6,780
Onto
Innovation (1)
24,100
3,073
Silicon
Laboratories (1)
13,900
1,611
Skyworks
Solutions
21,100
2,080
Teradyne
58,600
5,887
88,879
Software
10.6%
ANSYS (1)
51,500
15,324
Appfolio,
Class
A (1)
19,900
3,634
AppLovin,
Class
A (1)(2)
65,000
2,597
Atlassian,
Class
A (1)
9,600
1,934
Bentley
Systems,
Class
B
126,457
6,343
BILL
Holdings (1)
26,800
2,910
Canva,
Acquisition
Date:
8/16/21
-
11/4/21,
Cost $1,936 (1)(3)(4)
1,136
1,212
Confluent,
Class
A (1)
121,652
3,602
Crowdstrike
Holdings,
Class
A (1)
146,853
24,580
Databricks,
Class
A,
Acquisition
Date:
7/24/20
-
8/28/20,
Cost $835 (1)(3)(4)
52,161
3,834
Datadog,
Class
A (1)
196,846
17,931
Descartes
Systems
Group (1)
65,900
4,836��
DoubleVerify
Holdings (1)
70,475
1,970
Dynatrace (1)
179,273
8,377
Fair
Isaac (1)
17,300
15,026
Fortinet (1)
34,200
2,007
HubSpot (1)
35,099
17,286
Manhattan
Associates (1)
42,975
8,494
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
9
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Monday.com (1)
27,200
4,331
nCino (1)
74,245
2,361
Procore
Technologies (1)
41,470
2,709
PTC (1)
59,534
8,435
Samsara,
Class
A (1)
205,423
5,179
Snyk,
Acquisition
Date:
9/3/21,
Cost $1,690 (1)(3)(4)
117,787
1,197
Socure,
Acquisition
Date:
12/22/21,
Cost $432 (1)(3)(4)
26,874
147
Tanium,
Class
B,
Acquisition
Date:
9/24/20,
Cost $547 (1)(3)(4)
48,005
212
Tyler
Technologies (1)
26,744
10,327
Workiva (1)
26,500
2,685
Zscaler (1)
116,300
18,095
197,575
Technology
Hardware,
Storage
&
Peripherals
0.5%
Pure
Storage,
Class
A (1)
129,400
4,609
Super
Micro
Computer (1)
19,000
5,210
9,819
Total
Information
Technology
401,238
MATERIALS
1.7%
Chemicals
0.8%
Albemarle
12,000
2,040
CF
Industries
Holdings
25,800
2,212
PPG
Industries
56,700
7,360
RPM
International
26,273
2,491
14,103
Construction
Materials
0.3%
Vulcan
Materials
23,400
4,727
4,727
Containers
&
Packaging
0.4%
Avery
Dennison
25,300
4,621
Ball
26,147
1,302
Sealed
Air
61,646
2,026
7,949
Metals
&
Mining
0.2%
Steel
Dynamics
27,000
2,895
2,895
Total
Materials
29,674
REAL
ESTATE
1.5%
Industrial
Real
Estate
Investment
Trusts
0.1%
Rexford
Industrial
Realty,
REIT
43,300
2,137
2,137
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
10
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Real
Estate
Management
&
Development
0.4%
CoStar
Group (1)
104,300
8,020
8,020
Residential
Real
Estate
Investment
Trusts
0.1%
Equity
LifeStyle
Properties,
REIT
42,100
2,682
2,682
Retail
Real
Estate
Investment
Trusts
0.3%
Simon
Property
Group,
REIT
54,500
5,888
5,888
Specialized
Real
Estate
Investment
Trusts
0.6%
CubeSmart,
REIT
60,400
2,303
Lamar
Advertising,
Class
A,
REIT
69,120
5,769
SBA
Communications,
REIT
11,300
2,262
10,334
Total
Real
Estate
29,061
UTILITIES
0.2%
Independent
Power
&
Renewable
Electricity
Producers
0.2%
Vistra
83,700
2,777
Total
Utilities
2,777
Total
Common
Stocks
(Cost
$1,459,767)
1,844,594
CONVERTIBLE
PREFERRED
STOCKS
1.0%
HEALTH
CARE
0.1%
Biotechnology
0.1%
Caris
Life
Sciences,
Series
D,
Acquisition
Date:
5/11/21,
Cost $1,626 (1)(3)(4)
200,815
1,075
Total
Health
Care
1,075
INFORMATION
TECHNOLOGY
0.9%
Software
0.9%
Canva,
Series
A,
Acquisition
Date:
11/4/21,
Cost $116 (1)(3)(4)
68
72
Canva,
Series
A-3,
Acquisition
Date:
11/4/21,
Cost $5 (1)(3)(4)
3
3
Databricks,
Series
F,
Acquisition
Date:
10/22/19,
Cost $1,552 (1)
(3)(4)
108,447
7,971
Databricks,
Series
G,
Acquisition
Date:
2/1/21,
Cost $775 (1)(3)(4)
13,101
963
Databricks,
Series
H,
Acquisition
Date:
8/31/21,
Cost $2,225 (1)
(3)(4)
30,282
2,226
DataRobot,
Series
G,
Acquisition
Date:
6/11/21,
Cost $2,174 (1)
(3)(4)
79,458
303
Rappi,
Series
E,
Acquisition
Date:
9/8/20,
Cost $2,929 (1)(3)(4)
49,017
1,765
Snyk,
Series
F,
Acquisition
Date:
9/3/21,
Cost $2,816 (1)(3)(4)
197,401
2,006
Socure,
Series
A,
Acquisition
Date:
12/22/21,
Cost $525 (1)(3)(4)
32,662
179
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
11
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Socure,
Series
A-1,
Acquisition
Date:
12/22/21,
Cost $431 (1)(3)(4)
26,807
147
Socure,
Series
B,
Acquisition
Date:
12/22/21,
Cost $8 (1)(3)(4)
485
3
Socure,
Series
E,
Acquisition
Date:
10/27/21,
Cost $998 (1)(3)(4)
62,133
341
Tanium,
Series
G,
Acquisition
Date:
8/26/15,
Cost $985 (1)(3)(4)
198,465
875
Total
Information
Technology
16,854
Total
Convertible
Preferred
Stocks
(Cost
$17,165)
17,929
SHORT-TERM
INVESTMENTS
0.0%
Money
Market
Funds
0.0%
T.
Rowe
Price
Government
Reserve
Fund,
5.40% (5)(6)
778,983
779
Total
Short-Term
Investments
(Cost
$779)
779
SECURITIES
LENDING
COLLATERAL
3.0%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY
3.0%
Money
Market
Funds
3.0%
T.
Rowe
Price
Government
Reserve
Fund,
5.40% (5)(6)
55,659,385
55,659
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
55,659
Total
Securities
Lending
Collateral
(Cost
$55,659)
55,659
Total
Investments
in
Securities
103.0%
(Cost
$1,533,370)
$
1,918,961
Other
Assets
Less
Liabilities
(3.0)%
(55,872)
Net
Assets
100.0%
$
1,863,089
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
12
‡
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
September
30,
2023.
(3)
Level
3
in
fair
value
hierarchy.
(4)
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
$24,531
and
represents
1.3%
of
net
assets.
(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
Diversified
Mid-Cap
Growth
Fund
13
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
nine
months
ended
September
30,
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,
5.40%
$
—
$
—
$
52++
Totals
$
—#
$
—
$
52+
Supplementary
Investment
Schedule
Affiliate
Value
12/31/22
Purchase
Cost
Sales
Cost
Value
09/30/23
T.
Rowe
Price
Government
Reserve
Fund,
5.40%
$
7,718
¤
¤
$
56,438
Total
$
56,438^
#
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
$52
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
$56,438.
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
Unaudited
Notes
to
Portfolio
of
Investments
14
T.
Rowe
Price
Diversified
Mid-Cap
Growth
Fund,
Inc. (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)
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
15
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
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
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
16
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
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
September
30,
2023
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
Following
is
a
reconciliation
of
the
fund’s
Level
3
holdings
for
the
period ended
September
30,
2023.
Gain
(loss)
reflects
both
realized
and
change
in
unrealized
gain/
loss
on
Level
3
holdings
during
the
period,
if
any.
The
change
in
unrealized
gain/loss
on
Level
3
instruments
held
at
September
30,
2023,
totaled $2,414,000 for
the
period ended
September
30,
2023.
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Common
Stocks
$
1,837,992
$
—
$
6,602
$
1,844,594
Convertible
Preferred
Stocks
—
—
17,929
17,929
Short-Term
Investments
779
—
—
779
Securities
Lending
Collateral
55,659
—
—
55,659
Total
$
1,894,430
$
—
$
24,531
$
1,918,961
($000s)
Beginning
Balance
12/31/22
Gain
(Loss)
During
Period
Total
Sales
Ending
Balance
9/30/23
Investment
in
Securities
Common
Stocks
$
12,876
$
2,744
$
(9,018)
$
6,602
Convertible
Preferred
Stocks
16,594
1,335
—
17,929
Total
$
29,470
$
4,079
$
(9,018)
$
24,531
T.
ROWE
PRICE
Diversified
Mid-Cap
Growth
Fund
17
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
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.
F149-054Q3
09/23