T.
ROWE
PRICE
Short
Duration
Income
Fund
February
28,
2023
(Unaudited)
1
Portfolio
of
Investments
‡
Par/Shares
$
Value
(Amounts
in
000s)
‡
ASSET-BACKED
SECURITIES
19.3%
Car
Loan
8.6%
AmeriCredit
Automobile
Receivables
Trust
Series 2020-2,
Class
D
2.13%,
3/18/26
120
112
Avis
Budget
Rental
Car
Funding
AESOP
Series 2018-1A,
Class
D
5.25%,
9/20/24 (1)
110
109
Avis
Budget
Rental
Car
Funding
AESOP
Series 2019-3A,
Class
B
2.65%,
3/20/26 (1)
150
139
Carmax
Auto
Owner
Trust
Series 2020-1,
Class
D
2.64%,
7/15/26
115
111
Carmax
Auto
Owner
Trust
Series 2022-4,
Class
D
8.08%,
4/16/29
200
209
CarMax
Auto
Owner
Trust
Series 2020-3,
Class
C
1.69%,
4/15/26
50
47
CarMax
Auto
Owner
Trust
Series 2021-2,
Class
C
1.34%,
2/16/27
250
228
CarMax
Auto
Owner
Trust
Series 2023-1,
Class
A2A
5.23%,
1/15/26
185
184
Drive
Auto
Receivables
Trust
Series 2021-1,
Class
D
1.45%,
1/16/29
150
140
Enterprise
Fleet
Financing
Series 2022-2,
Class
A2
4.65%,
5/21/29 (1)
70
69
Exeter
Automobile
Receivables
Trust
Series 2021-2A,
Class
C
0.98%,
6/15/26
75
73
Exeter
Automobile
Receivables
Trust
Series 2022-4A,
Class
D
5.98%,
12/15/28
45
44
Exeter
Automobile
Receivables
Trust
Series 2022-6A,
Class
A3
5.70%,
8/17/26
25
25
Exeter
Automobile
Receivables
Trust
Series 2023-1A,
Class
A3
5.58%,
4/15/26
119
119
Ford
Credit
Auto
Lease
Trust
Series 2022-A,
Class
C
4.18%,
10/15/25
255
248
T.
ROWE
PRICE
Short
Duration
Income
Fund
2
Par/Shares
$
Value
(Amounts
in
000s)
‡
Ford
Credit
Auto
Lease
Trust
Series 2023-A,
Class
C
5.54%,
12/15/26
230
227
GM
Financial
Automobile
Leasing
Trust
Series 2021-1,
Class
D
1.01%,
7/21/25
140
137
GM
Financial
Automobile
Leasing
Trust
Series 2022-3,
Class
C
5.13%,
8/20/26
245
241
GM
Financial
Consumer
Automobile
Receivables
Trust
Series 2020-3,
Class
C
1.37%,
1/16/26
30
29
GM
Financial
Consumer
Automobile
Receivables
Trust
Series 2020-4,
Class
C
1.05%,
5/18/26
50
46
GM
Financial
Consumer
Automobile
Receivables
Trust
Series 2023-1,
Class
B
5.03%,
9/18/28
35
35
JPMorgan
Chase
Bank
Series 2021-2,
Class
D
1.138%,
12/26/28 (1)
94
90
Nissan
Auto
Lease
Trust
Series 2023-A,
Class
A2A
5.10%,
3/17/25
300
299
Santander
Bank
-
SBCLN
Series 2021-1A,
Class
C
3.268%,
12/15/31 (1)
270
261
Santander
Consumer
Auto
Receivables
Trust
Series 2020-BA,
Class
C
1.29%,
4/15/26 (1)
100
96
Santander
Consumer
Auto
Receivables
Trust
Series 2021-AA,
Class
D
1.57%,
1/15/27 (1)
100
91
Santander
Consumer
Auto
Receivables
Trust
Series 2021-CA,
Class
C
2.97%,
6/15/28 (1)
265
259
Santander
Drive
Auto
Receivables
Trust
Series 2023-1,
Class
A2
5.36%,
5/15/26
300
299
Santander
Retail
Auto
Lease
Trust
Series 2021-C,
Class
D
1.39%,
8/20/26 (1)
350
327
Santander
Retail
Auto
Lease
Trust
Series 2022-B,
Class
A3
3.28%,
11/20/25 (1)
71
69
T.
ROWE
PRICE
Short
Duration
Income
Fund
3
Par/Shares
$
Value
(Amounts
in
000s)
‡
World
Omni
Auto
Receivables
Trust
Series 2020-C,
Class
C
1.39%,
5/17/27
85
79
4,442
Other
Asset-Backed
Securities
9.8%
Amur
Equipment
Finance
Receivables
XI
Series 2022-2A,
Class
A2
5.30%,
6/21/28 (1)
100
99
Applebee's
Funding
Series 2019-1A,
Class
A2I
4.194%,
6/5/49 (1)
248
240
Benefit
Street
Partners
XI
Series 2017-11A,
Class
A2R,
CLO,
FRN
3M
USD
LIBOR
+
1.50%,
6.292%,
4/15/29 (1)
250
245
Blackbird
Capital
Aircraft
Lease
Securitization
Series 2016-1A,
Class
AA,
STEP
2.487%,
12/16/41 (1)
55
51
CBAM
Series 2019-9A,
Class
B1,
CLO,
FRN
3M
USD
LIBOR
+
1.90%,
6.692%,
2/12/30 (1)
250
247
Cedar
Funding
VII
Series 2018-7A,
Class
B,
CLO,
FRN
3M
USD
LIBOR
+
1.40%,
6.208%,
1/20/31 (1)
250
242
CIFC
Funding
Series 2021-4A,
Class
A,
CLO,
FRN
3M
USD
LIBOR
+
1.05%,
5.842%,
7/15/33 (1)
250
247
DB
Master
Finance
Series 2019-1A,
Class
A2II
4.021%,
5/20/49 (1)
92
86
DLLAD
Series 2023-1A,
Class
A2
5.19%,
4/20/26 (1)
115
114
Elara
HGV
Timeshare
Issuer
Series 2016-A,
Class
A
2.73%,
4/25/28 (1)
10
10
Elara
HGV
Timeshare
Issuer
Series 2019-A,
Class
A
2.61%,
1/25/34 (1)
74
69
Hilton
Grand
Vacations
Trust
Series 2017-AA,
Class
B
2.96%,
12/26/28 (1)
60
59
Hilton
Grand
Vacations
Trust
Series 2019-AA,
Class
B
2.54%,
7/25/33 (1)
96
90
KKR
Series 29A,
Class
A,
CLO,
FRN
3M
USD
LIBOR
+
1.20%,
5.992%,
1/15/32 (1)
250
248
T.
ROWE
PRICE
Short
Duration
Income
Fund
4
Par/Shares
$
Value
(Amounts
in
000s)
‡
Madison
Park
Funding
XXIII
Series 2017-23A,
Class
AR,
CLO,
FRN
3M
USD
LIBOR
+
0.97%,
5.785%,
7/27/31 (1)
250
248
Madison
Park
Funding
XXXV
Series 2019-35A,
Class
A1R,
CLO,
FRN
3M
USD
LIBOR
+
0.99%,
5.798%,
4/20/32 (1)
250
247
Madison
Park
Funding
XXXVII
Series 2019-37A,
Class
AR,
CLO,
FRN
3M
USD
LIBOR
+
1.07%,
5.862%,
7/15/33 (1)
250
246
MVW
Series 2021-1WA,
Class
C
1.94%,
1/22/41 (1)
63
57
MVW
Owner
Trust
Series 2017-1A,
Class
B
2.75%,
12/20/34 (1)
73
71
OCP
Series 2014-7A,
Class
A1RR,
CLO,
FRN
3M
USD
LIBOR
+
1.12%,
5.928%,
7/20/29 (1)
268
266
OCP
Series 2017-13A,
Class
A2R,
CLO,
FRN
3M
USD
LIBOR
+
1.55%,
6.342%,
7/15/30 (1)
250
246
Octagon
Investment
Partners
Series 2016-1A,
Class
AR,
CLO,
FRN
3M
USD
LIBOR
+
1.18%,
5.996%,
1/24/33 (1)
250
246
Octane
Receivables
Trust
Series 2021-2A,
Class
A
1.21%,
9/20/28 (1)
49
47
Octane
Receivables
Trust
Series 2022-1A,
Class
B
4.90%,
5/22/28 (1)
150
145
Octane
Receivables
Trust
Series 2022-2A,
Class
A
5.11%,
2/22/28 (1)
89
88
Octane
Receivables
Trust
Series 2023-1A,
Class
A
5.87%,
5/21/29 (1)
100
100
Planet
Fitness
Master
Issuer
Series 2018-1A,
Class
A2II
4.666%,
9/5/48 (1)
196
185
Progress
Residential
Trust
Series 2020-SFR2,
Class
A
2.078%,
6/17/37 (1)
200
185
Sierra
Timeshare
Receivables
Funding
Series 2021-1A,
Class
B
1.34%,
11/20/37 (1)
105
96
Sierra
Timeshare
Receivables
Funding
Series 2021-1A,
Class
C
1.79%,
11/20/37 (1)
35
32
T.
ROWE
PRICE
Short
Duration
Income
Fund
5
Par/Shares
$
Value
(Amounts
in
000s)
‡
Symphony
Static
I
Series 2021-1A,
Class
C,
CLO,
FRN
3M
USD
LIBOR
+
1.85%,
6.668%,
10/25/29 (1)
250
235
Symphony
XXIII
Series 2020-23A,
Class
AR,
CLO,
FRN
3M
USD
LIBOR
+
1.02%,
5.812%,
1/15/34 (1)
250
247
5,034
Student
Loan
0.9%
Navient
Private
Education
Loan
Trust
Series 2020-A,
Class
A2A
2.46%,
11/15/68 (1)
73
68
Navient
Private
Education
Refi
Loan
Trust
Series 2018-A,
Class
A2
3.19%,
2/18/42 (1)
8
8
Navient
Private
Education
Refi
Loan
Trust
Series 2019-A,
Class
A2A
3.42%,
1/15/43 (1)
45
43
Navient
Private
Education
Refi
Loan
Trust
Series 2019-D,
Class
A2A
3.01%,
12/15/59 (1)
95
88
Navient
Private
Education
Refi
Loan
Trust
Series 2019-GA,
Class
A
2.40%,
10/15/68 (1)
66
60
SMB
Private
Education
Loan
Trust
Series 2016-C,
Class
A2A
2.34%,
9/15/34 (1)
21
21
SMB
Private
Education
Loan
Trust
Series 2017-B,
Class
B
3.50%,
12/16/41 (1)
150
135
SMB
Private
Education
Loan
Trust
Series 2020-A,
Class
A2A
2.23%,
9/15/37 (1)
66
61
484
Total
Asset-Backed
Securities
(Cost
$10,297)
9,960
BANK
LOANS
1.7%
(2)
Consumer
Non-Cyclical
0.8%
PetVet
Care
Centers,
FRN,
1M
USD
LIBOR
+
3.50%,
8.135%,
2/14/25
197
188
Surgery
Center
Holdings,
FRN,
1M
USD
LIBOR
+
3.75%,
8.36%,
8/31/26
227
225
413
Insurance
0.7%
Asurion,
FRN,
1M
USD
LIBOR
+
3.00%,
7.635%,
11/3/24
170
170
HUB
International,
FRN,
3M
USD
LIBOR
+
3.00%,
7.817%,
4/25/25
188
187
357
T.
ROWE
PRICE
Short
Duration
Income
Fund
6
Par/Shares
$
Value
(Amounts
in
000s)
‡
Technology
0.2%
Applied
Systems,
FRN,
1M
USD
LIBOR
+
3.00%,
7.73%,
9/19/24
123
123
123
Total
Bank
Loans
(Cost
$903)
893
CORPORATE
BONDS
35.9%
Banking
11.7%
Banco
de
Bogota,
6.25%,
5/12/26
200
195
Banco
de
Credito
del
Peru
S.A.,
4.25%,
4/1/23
200
200
Banco
Santander,
2.746%,
5/28/25
200
187
Banco
Santander
Mexico
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand,
5.375%,
4/17/25
150
149
Bank
of
America,
VR,
0.976%,
4/22/25 (3)
350
330
Bank
of
America,
VR,
5.08%,
1/20/27 (3)
150
148
Bank
of
Ireland
Group,
4.50%,
11/25/23 (1)
200
197
Bank
of
Montreal,
5.20%,
12/12/24
200
200
Bank
of
the
Philippine
Islands,
2.50%,
9/10/24
200
192
Banque
Federative
du
Credit
Mutuel,
4.935%,
1/26/26 (1)
200
197
Barclays,
VR,
5.304%,
8/9/26 (3)
200
196
Barclays,
VR,
7.325%,
11/2/26 (3)
200
207
BBVA
Bancomer,
4.375%,
4/10/24
150
148
CaixaBank,
VR,
6.208%,
1/18/29 (1)(3)
200
199
Citigroup,
VR,
0.981%,
5/1/25 (3)
150
141
Citigroup,
VR,
4.14%,
5/24/25 (3)
105
103
Danske
Bank,
5.375%,
1/12/24 (1)
200
199
Goldman
Sachs
Group,
5.70%,
11/1/24
200
201
Goldman
Sachs
Group,
VR,
1.757%,
1/24/25 (3)
175
168
HDFC
Bank,
5.686%,
3/2/26
200
200
HSBC
Holdings,
4.25%,
3/14/24
200
197
Lloyds
Banking
Group,
4.50%,
11/4/24
200
196
Mitsubishi
UFJ
Financial
Group,
VR,
5.063%,
9/12/25 (3)
200
198
Morgan
Stanley,
VR,
0.731%,
4/5/24 (3)
210
209
Morgan
Stanley,
VR,
5.05%,
1/28/27 (3)
85
84
NatWest
Group,
VR,
7.472%,
11/10/26 (3)
200
208
PNC
Financial
Services
Group,
VR,
4.758%,
1/26/27 (3)
120
118
PNC
Financial
Services
Group,
VR,
5.671%,
10/28/25 (3)
135
135
Societe
Generale,
2.625%,
10/16/24 (1)
200
190
Standard
Chartered,
VR,
6.17%,
1/9/27 (1)(3)
200
202
UBS
Group,
VR,
4.488%,
5/12/26 (1)(3)
200
195
Wells
Fargo,
VR,
3.908%,
4/25/26 (3)
200
193
Wells
Fargo,
VR,
4.54%,
8/15/26 (3)
150
146
6,028
Basic
Industry
2.1%
ArcelorMittal,
3.60%,
7/16/24
130
126
T.
ROWE
PRICE
Short
Duration
Income
Fund
7
Par/Shares
$
Value
(Amounts
in
000s)
‡
Celanese
U.S.
Holdings,
6.05%,
3/15/25
155
154
Celulosa
Arauco
y
Constitucion,
4.50%,
8/1/24
200
197
Cia
de
Minas
Buenaventura,
5.50%,
7/23/26 (1)
200
169
POSCO,
5.625%,
1/17/26 (1)
200
201
Suzano
Austria,
5.75%,
7/14/26
200
201
Westlake,
0.875%,
8/15/24
25
23
1,071
Brokerage
Assetmanagers
Exchanges
0.3%
LSEGA
Financing,
1.375%,
4/6/26 (1)
200
176
176
Capital
Goods
0.1%
Regal
Rexnord,
6.05%,
2/15/26 (1)
75
74
74
Communications
3.1%
Axian
Telecom,
7.375%,
2/16/27
200
185
Crown
Castle,
5.00%,
1/11/28
75
74
CSC
Holdings,
5.25%,
6/1/24
95
92
DISH
Network,
11.75%,
11/15/27 (1)
150
152
iHeartCommunications,
6.375%,
5/1/26
170
160
Magallanes,
3.428%,
3/15/24 (1)
150
146
Sable
International
Finance,
5.75%,
9/7/27 (1)
200
184
SBA
Tower
Trust,
6.599%,
1/15/28 (1)
115
117
Tower
Bersama
Infrastructure,
4.25%,
1/21/25
200
192
Townsquare
Media,
6.875%,
2/1/26 (1)
165
151
Warnermedia
Holdings,
3.755%,
3/15/27 (1)
155
142
1,595
Consumer
Cyclical
4.4%
7-Eleven,
0.80%,
2/10/24 (1)
45
43
CEC
Entertainment,
6.75%,
5/1/26 (1)
75
70
Daimler
Truck
Finance
North
America,
1.625%,
12/13/24 (1)
170
159
Daimler
Truck
Finance
North
America,
5.15%,
1/16/26 (1)
150
148
Ford
Motor
Credit,
5.125%,
6/16/25
200
193
General
Motors
Financial,
1.05%,
3/8/24
150
143
Hyatt
Hotels,
1.30%,
10/1/23
60
59
Hyundai
Capital
America,
0.80%,
1/8/24 (1)
150
144
Jaguar
Land
Rover
Automotive,
7.75%,
10/15/25 (1)
200
197
Life
Time,
5.75%,
1/15/26 (1)
4
4
Lowe's,
4.40%,
9/8/25
70
69
Mercedes-Benz
Finance
North
America,
5.375%,
11/26/25 (1)
200
201
Nissan
Motor,
3.043%,
9/15/23 (1)
200
196
Nordstrom,
2.30%,
4/8/24
155
146
QVC,
4.45%,
2/15/25
2
2
QVC,
4.85%,
4/1/24
150
141
Stellantis
Finance
U.S.,
1.711%,
1/29/27 (1)
200
173
Volkswagen
Group
of
America
Finance,
3.95%,
6/6/25 (1)
200
193
T.
ROWE
PRICE
Short
Duration
Income
Fund
8
Par/Shares
$
Value
(Amounts
in
000s)
‡
2,281
Consumer
Non-Cyclical
2.7%
Brunswick,
0.85%,
8/18/24
115
107
CHS,
8.00%,
3/15/26 (1)
120
117
CSL
Finance,
3.85%,
4/27/27 (1)
25
24
HCA,
5.25%,
4/15/25
200
198
Hikma
Finance
USA,
3.25%,
7/9/25
200
188
Kimberly-Clark
de
Mexico,
3.80%,
4/8/24
200
195
Legacy
LifePoint
Health,
6.75%,
4/15/25 (1)
170
162
Mondelez
International
Holdings
Netherlands,
4.25%,
9/15/25 (1)
200
195
Teva
Pharmaceutical
Finance
Netherlands
III,
6.00%,
4/15/24
200
200
1,386
Electric
2.4%
AES,
3.30%,
7/15/25 (1)
100
94
Alexander
Funding
Trust,
1.841%,
11/15/23 (1)
200
193
DTE
Energy,
STEP,
4.22%,
11/1/24
65
64
Engie
Energia
Chile,
4.50%,
1/29/25
200
186
NRG
Energy,
3.75%,
6/15/24 (1)
150
145
Pacific
Gas
&
Electric,
3.50%,
6/15/25
100
94
Southern,
STEP,
4.475%,
8/1/24
125
123
Vistra
Operations,
3.55%,
7/15/24 (1)
200
192
Vistra
Operations,
5.125%,
5/13/25 (1)
150
146
1,237
Energy
2.8%
Aker
BP,
3.00%,
1/15/25 (1)
150
143
Continental
Resources,
3.80%,
6/1/24
50
49
Continental
Resources,
4.50%,
4/15/23
100
100
Energy
Transfer,
2.90%,
5/15/25
100
94
Energy
Transfer,
4.90%,
2/1/24
60
60
Ferrellgas,
5.375%,
4/1/26 (1)
175
157
Gray
Oak
Pipeline,
2.00%,
9/15/23 (1)
100
98
Leviathan
Bond,
6.125%,
6/30/25 (1)
200
194
Southwestern
Energy,
8.375%,
9/15/28
175
183
Targa
Resources
Partners,
6.50%,
7/15/27
45
45
Targa
Resources
Partners,
6.875%,
1/15/29
255
258
Williams,
5.40%,
3/2/26
50
50
1,431
Finance
Companies
0.8%
AerCap
Ireland
Capital,
1.65%,
10/29/24
215
199
Avolon
Holdings
Funding,
3.95%,
7/1/24 (1)
100
97
Navient,
6.125%,
3/25/24
135
134
430
Financial
Other
0.8%
EMG
SUKUK,
4.564%,
6/18/24
200
198
T.
ROWE
PRICE
Short
Duration
Income
Fund
9
Par/Shares
$
Value
(Amounts
in
000s)
‡
MAF
Global
Securities,
4.75%,
5/7/24
200
197
395
Industrial
Other
0.4%
Bidvest
Group
U.K.,
3.625%,
9/23/26
200
179
179
Insurance
1.6%
Athene
Global
Funding,
1.716%,
1/7/25 (1)
225
208
Brighthouse
Financial
Global
Funding,
1.00%,
4/12/24 (1)
25
24
CNO
Global
Funding,
1.65%,
1/6/25 (1)
150
139
Humana,
1.35%,
2/3/27 (4)
70
60
Humana,
5.75%,
3/1/28
25
26
Jackson
Financial,
1.125%,
11/22/23
120
116
Jackson
National
Life
Global
Funding,
5.50%,
1/9/26 (1)
175
175
UnitedHealth
Group,
5.15%,
10/15/25
100
100
848
Owned
No
Guarantee
0.7%
Bank
Negara
Indonesia
Persero,
3.75%,
3/30/26
200
185
Lamar
Funding,
3.958%,
5/7/25
200
191
376
Real
Estate
Investment
Trusts
0.6%
Park
Intermediate
Holdings,
7.50%,
6/1/25 (1)
95
95
Realty
Income,
5.05%,
1/13/26
55
55
Service
Properties
Trust,
7.50%,
9/15/25
175
173
323
Technology
1.1%
Equifax,
5.10%,
12/15/27
95
94
Microchip
Technology,
0.972%,
2/15/24
125
120
Oracle,
5.80%,
11/10/25
45
45
SK
Hynix,
6.25%,
1/17/26 (1)
200
201
Skyworks
Solutions,
0.90%,
6/1/23
20
20
VMware,
0.60%,
8/15/23
70
68
548
Transportation
0.3%
Sydney
Airport
Finance,
3.90%,
3/22/23 (1)
150
150
150
Total
Corporate
Bonds
(Cost
$19,273)
18,528
FOREIGN
GOVERNMENT
OBLIGATIONS
&
MUNICIPALITIES
1.5%
Government
Sponsored
0.4%
MEGlobal
Canada
ULC,
5.00%,
5/18/25
200
197
197
Owned
No
Guarantee
1.1%
Export-Import
Bank
of
India,
3.875%,
3/12/24
200
197
T.
ROWE
PRICE
Short
Duration
Income
Fund
10
Par/Shares
$
Value
(Amounts
in
000s)
‡
Indian
Oil,
4.75%,
1/16/24
200
198
Petroleos
Mexicanos,
4.875%,
1/18/24
200
197
592
Total
Foreign
Government
Obligations
&
Municipalities
(Cost
$824)
789
MUNICIPAL
SECURITIES
0.2%
Michigan
0.2%
Detroit,
Social
Bonds,
Series B,
GO,
2.189%,
4/1/24
125
120
Total
Municipal
Securities
(Cost
$125)
120
NON-U.S.
GOVERNMENT
MORTGAGE-BACKED
SECURITIES
12.3%
Collateralized
Mortgage
Obligations
6.2%
Barclays
Mortgage
Loan
Trust
Series 2021-NQM1,
Class
A3,
CMO,
ARM
2.189%,
9/25/51 (1)
74
63
Bellemeade
Re
Series 2022-1,
Class
M1B,
CMO,
ARM
SOFR30A
+
2.15%,
6.634%,
1/26/32 (1)
300
298
CAFL
Issuer
Series 2021-RTL1,
Class
A2,
CMO,
STEP
3.104%,
3/28/29 (1)
220
192
COLT
Mortgage
Loan
Trust
Series 2020-3,
Class
A1,
CMO,
ARM
1.506%,
4/27/65 (1)
19
18
Connecticut
Avenue
Securities
Trust
Series 2021-R01,
Class
1M2,
CMO,
ARM
SOFR30A
+
1.55%,
6.034%,
10/25/41 (1)
200
195
Connecticut
Avenue
Securities
Trust
Series 2022-R03,
Class
1M1,
CMO,
ARM
SOFR30A
+
2.10%,
6.584%,
3/25/42 (1)
113
113
Connecticut
Avenue
Securities
Trust
Series 2022-R06,
Class
1M1,
CMO,
ARM
SOFR30A
+
2.75%,
7.234%,
5/25/42 (1)
75
77
Connecticut
Avenue
Securities
Trust
Series 2022-R08,
Class
1M1,
CMO,
ARM
SOFR30A
+
2.55%,
7.034%,
7/25/42 (1)
64
64
Connecticut
Avenue
Securities
Trust
Series 2023-R01,
Class
1M1,
CMO,
ARM
SOFR30A
+
2.40%,
6.892%,
12/25/42 (1)
69
69
Deephaven
Residential
Mortgage
Trust
Series 2021-1,
Class
A3,
CMO,
ARM
1.128%,
5/25/65 (1)
30
27
T.
ROWE
PRICE
Short
Duration
Income
Fund
11
Par/Shares
$
Value
(Amounts
in
000s)
‡
Eagle
Series 2021-2,
Class
M1A,
CMO,
ARM
SOFR30A
+
1.55%,
6.034%,
4/25/34 (1)
127
126
Finance
of
America
HECM
Buyout
Series 2022-HB2,
Class
A1A,
CMO,
ARM
4.00%,
8/1/32 (1)
132
129
Flagstar
Mortgage
Trust
Series 2019-1INV,
Class
A11,
CMO,
ARM
1M
USD
LIBOR
+
0.95%,
5.456%,
10/25/49 (1)
18
17
Flagstar
Mortgage
Trust
Series 2020-1INV,
Class
A11,
CMO,
ARM
1M
USD
LIBOR
+
0.85%,
5.356%,
3/25/50 (1)
30
28
Freddie
Mac
Whole
Loan
Securities
Trust
Series 2017-SC02,
Class
M1,
CMO,
ARM
3.86%,
5/25/47 (1)
243
236
Hundred
Acre
Wood
Trust
Series 2021-INV1,
Class
A9,
CMO,
ARM
2.50%,
7/25/51 (1)
126
109
Hundred
Acre
Wood
Trust
Series 2021-INV2,
Class
A27,
CMO,
ARM
2.50%,
10/25/51 (1)
87
68
JPMorgan
Mortgage
Trust
Series 2019-INV2,
Class
A3,
CMO,
ARM
3.50%,
2/25/50 (1)
89
80
MFRA
Trust
Series 2021-NQM2,
Class
A3,
CMO,
ARM
1.472%,
11/25/64 (1)
53
43
New
Residential
Mortgage
Loan
Trust
Series 2021-NQ1R,
Class
A3,
CMO,
ARM
1.198%,
7/25/55 (1)
62
52
OBX
Trust
Series 2019-INV1,
Class
A3,
CMO,
ARM
4.50%,
11/25/48 (1)
33
31
OBX
Trust
Series 2019-INV2,
Class
A25,
CMO,
ARM
4.00%,
5/27/49 (1)
47
43
OBX
Trust
Series 2021-NQM3,
Class
A2,
CMO,
ARM
1.26%,
7/25/61 (1)
74
57
Radnor
RE
Series 2021-2,
Class
M1A,
CMO,
ARM
SOFR30A
+
1.85%,
6.334%,
11/25/31 (1)
111
111
Starwood
Mortgage
Residential
Trust
Series 2020-INV1,
Class
A3,
CMO,
ARM
1.593%,
11/25/55 (1)
28
24
Starwood
Mortgage
Residential
Trust
Series 2021-2,
Class
A3,
CMO,
ARM
1.431%,
5/25/65 (1)
88
81
T.
ROWE
PRICE
Short
Duration
Income
Fund
12
Par/Shares
$
Value
(Amounts
in
000s)
‡
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-DNA2,
Class
M2,
CMO,
ARM
1M
USD
LIBOR
+
1.85%,
6.467%,
2/25/50 (1)
85
85
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-DNA5,
Class
M2,
CMO,
ARM
SOFR30A
+
2.80%,
7.284%,
10/25/50 (1)
56
57
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-HQA1,
Class
M2,
CMO,
ARM
1M
USD
LIBOR
+
1.90%,
6.517%,
1/25/50 (1)
23
23
Structured
Agency
Credit
Risk
Debt
Notes
Series 2021-DNA5,
Class
M2,
CMO,
ARM
SOFR30A
+
1.65%,
6.134%,
1/25/34 (1)
80
79
Structured
Agency
Credit
Risk
Debt
Notes
Series 2022-DNA6,
Class
M1A,
CMO,
ARM
SOFR30A
+
2.15%,
6.634%,
9/25/42 (1)
49
50
Structured
Agency
Credit
Risk
Debt
Notes
Series 2022-HQA3,
Class
M1A,
CMO,
ARM
SOFR30A
+
2.30%,
6.784%,
8/25/42 (1)
56
57
Towd
Point
Mortgage
Trust
Series 2016-5,
Class
A1,
CMO,
ARM
2.50%,
10/25/56 (1)
26
25
UWM
Mortgage
Trust
Series 2021-INV2,
Class
A15,
CMO,
ARM
2.50%,
9/25/51 (1)
196
154
Verus
Securitization
Trust
Series 2019-4,
Class
A1,
CMO,
STEP
2.642%,
11/25/59 (1)
9
9
Verus
Securitization
Trust
Series 2019-INV3,
Class
A3,
CMO,
ARM
3.10%,
11/25/59 (1)
121
114
Verus
Securitization
Trust
Series 2020-1,
Class
A3,
CMO,
STEP
2.724%,
1/25/60 (1)
85
80
Verus
Securitization
Trust
Series 2021-2,
Class
A3,
CMO,
ARM
1.545%,
2/25/66 (1)
161
138
3,222
Commercial
Mortgage-Backed
Securities
6.1%
BAMLL
Commercial
Mortgage
Securities
Trust
Series 2021-JACX,
Class
E,
ARM
1M
USD
LIBOR
+
3.75%,
8.338%,
9/15/38 (1)
100
87
BANK
Series 2019-BN23,
Class
A1
1.975%,
12/15/52
35
33
BBCMS
Mortgage
Trust
Series 2020-BID,
Class
A,
ARM
1M
USD
LIBOR
+
2.14%,
6.728%,
10/15/37 (1)
250
244
T.
ROWE
PRICE
Short
Duration
Income
Fund
13
Par/Shares
$
Value
(Amounts
in
000s)
‡
BX
Commercial
Mortgage
Trust
Series 2019-IMC,
Class
A,
ARM
1M
USD
LIBOR
+
1.00%,
5.588%,
4/15/34 (1)
160
157
BX
Commercial
Mortgage
Trust
Series 2019-IMC,
Class
D,
ARM
1M
USD
LIBOR
+
1.90%,
6.488%,
4/15/34 (1)
202
194
BX
Trust
Series 2021-ARIA,
Class
C,
ARM
1M
USD
LIBOR
+
1.646%,
6.234%,
10/15/36 (1)
160
154
CD
Mortgage
Trust
Series 2016-CD1,
Class
B,
ARM
3.077%,
8/10/49
100
86
Citigroup
Commercial
Mortgage
Trust
Series 2013-375P,
Class
B,
ARM
3.518%,
5/10/35 (1)
150
140
Citigroup
Commercial
Mortgage
Trust
Series 2016-C1,
Class
AS
3.514%,
5/10/49
200
185
Cold
Storage
Trust
Series 2020-ICE5,
Class
C,
ARM
1M
USD
LIBOR
+
1.65%,
6.238%,
11/15/37 (1)
147
146
Commercial
Mortgage
Trust
Series 2013-300P,
Class
A1
4.353%,
8/10/30 (1)
146
142
Commercial
Mortgage
Trust
Series 2014-CR14,
Class
AM,
ARM
4.526%,
2/10/47
75
74
Commercial
Mortgage
Trust
Series 2014-UBS2,
Class
B
4.701%,
3/10/47
105
102
Commercial
Mortgage
Trust
Series 2017-PANW,
Class
D,
ARM
3.935%,
10/10/29 (1)
109
100
Eleven
Madison
Mortgage
Trust
Series 2015-11MD,
Class
A,
ARM
3.555%,
9/10/35 (1)
170
158
Fontainebleau
Miami
Beach
Trust
Series 2019-FBLU,
Class
B
3.447%,
12/10/36 (1)
275
258
Great
Wolf
Trust
Series 2019-WOLF,
Class
E,
ARM
1M
TSFR
+
2.846%,
7.408%,
12/15/36 (1)
125
120
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series 2018-WPT,
Class
BFL,
ARM
1M
USD
LIBOR
+
1.50%,
6.08%,
7/5/33 (1)
59
51
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series 2020-609M,
Class
B,
ARM
1M
USD
LIBOR
+
1.77%,
6.358%,
10/15/33 (1)
100
90
T.
ROWE
PRICE
Short
Duration
Income
Fund
14
Par/Shares
$
Value
(Amounts
in
000s)
‡
LSTAR
Commercial
Mortgage
Trust
Series 2015-3,
Class
B,
ARM
3.148%,
4/20/48 (1)
147
138
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series 2014-C17,
Class
A5
3.741%,
8/15/47
39
38
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series 2015-C24,
Class
AS,
ARM
4.036%,
5/15/48
95
90
One
Market
Plaza
Trust
Series 2017-1MKT,
Class
A
3.614%,
2/10/32 (1)
130
122
SLIDE
Series 2018-FUN,
Class
D,
ARM
1M
USD
LIBOR
+
2.10%,
6.688%,
6/15/31 (1)
227
225
3,134
Total
Non-U.S.
Government
Mortgage-Backed
Securities
(Cost
$6,835)
6,356
U.S.
GOVERNMENT
&
AGENCY
MORTGAGE-BACKED
SECURITIES
1.8%
U.S
Government
Obligation
1.8%
Government
National
Mortgage
Assn.
3.50%,
5/20/47
-
11/20/47
481
450
4.50%,
6/20/51
227
223
6.00%,
2/20/40
-
12/20/40
222
234
Total
U.S.
Government
&
Agency
Mortgage-Backed
Securities
(Cost
$894)
907
U.S.
GOVERNMENT
AGENCY
OBLIGATIONS
(EXCLUDING
MORTGAGE-BACKED)
19.4%
U.S.
Treasury
Obligations
19.4%
U.S.
Treasury
Notes,
2.50%,
4/30/24
230
223
U.S.
Treasury
Notes,
3.00%,
6/30/24
1,000
973
U.S.
Treasury
Notes,
3.00%,
7/31/24
695
675
U.S.
Treasury
Notes,
3.00%,
7/15/25
1,985
1,911
U.S.
Treasury
Notes,
4.25%,
9/30/24 (5)
1,930
1,908
U.S.
Treasury
Notes,
4.375%,
10/31/24
760
753
U.S.
Treasury
Notes,
4.625%,
2/28/25
3,570
3,559
Total
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed)
(Cost
$10,153)
10,002
T.
ROWE
PRICE
Short
Duration
Income
Fund
15
Par/Shares
$
Value
(Amounts
in
000s)
‡
SHORT-TERM
INVESTMENTS
8.9%
Commercial
Paper
6.4%
4(2)
5.4%(6)
Arrow
Electronics,
5.166%,
3/21/23
250
249
Bacardi
Martini,
5.433%,
3/27/23
250
249
Canadian
Natural
Resources,
5.277%,
3/22/23
250
249
Crown
Castle
International,
5.266%,
3/14/23
250
250
Harley
Davidson,
5.305%,
3/7/23
250
250
International
Flavors
&
Fragrance,
5.602%,
3/20/23
300
299
Ovintiv,
5.471%,
3/24/23
250
249
STZ,
5.238%,
3/3/23
250
250
Syngenta
Wilmington,
5.422%,
3/21/23
250
249
Targa
Resources,
5.469%,
3/22/23
250
249
Walgreens
Boots
Alliance,
3/22/23
250
249
2,792
Non-4(2)
1.0%
Quanta
Services,
3/10/23
250
250
Quanta
Services,
5.26%,
3/1/23
250
250
500
3,292
Money
Market
Funds
2.5%
T.
Rowe
Price
Government
Reserve
Fund,
4.60% (7)(8)
1,286
1,286
1,286
Total
Short-Term
Investments
(Cost
$4,579)
4,578
SECURITIES
LENDING
COLLATERAL
0.1%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY
0.1%
Money
Market
Funds
0.1%
T.
Rowe
Price
Government
Reserve
Fund,
4.60% (7)(8)
55
55
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
55
Total
Securities
Lending
Collateral
(Cost
$55)
55
Total
Investments
in
Securities
101.1%
(Cost
$53,938)
$
52,188
Other
Assets
Less
Liabilities
(1.1)%
(579)
Net
Assets
100.0%
$
51,609
T.
ROWE
PRICE
Short
Duration
Income
Fund
16
‡
Par/Shares
and
Notional
Amount
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers.
Total
value
of
such
securities
at
period-end
amounts
to
$20,144
and
represents
39.0%
of
net
assets.
(2)
Bank
loan
positions
may
involve
multiple
underlying
tranches.
In
those
instances,
the
position
presented
reflects
the
aggregate
of
those
respective
underlying
tranches
and
the
rate
presented
reflects
the
weighted
average
rate
of
the
settled
positions.
(3)
Security
is
a
fix-to-float
security,
which
carries
a
fixed
coupon
until
a
certain
date,
upon
which
it
switches
to
a
floating
rate.
Reference
rate
and
spread
are
provided
if
the
rate
is
currently
floating.
(4)
All
or
a
portion
of
this
security
is
on
loan
at
February
28,
2023.
(5)
At
February
28,
2023,
all
or
a
portion
of
this
security
is
pledged
as
collateral
and/
or
margin
deposit
to
cover
future
funding
obligations.
(6)
Commercial
paper
exempt
from
registration
under
Section
4(2)
of
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
dealers
in
that
program
or
other
"accredited
investors".
Total
value
of
such
securities
at
period-end
amounts
to
$2,792
and
represents
5.4%
of
net
assets.
(7)
Seven-day
yield
(8)
Affiliated
Companies
1M
TSFR
One
month
term
SOFR
(Secured
overnight
financing
rate)
1M
USD
LIBOR
One
month
USD
LIBOR
(London
interbank
offered
rate)
3M
USD
LIBOR
Three
month
USD
LIBOR
(London
interbank
offered
rate)
ARM
Adjustable
Rate
Mortgage
(ARM);
rate
shown
is
effective
rate
at
period-end.
The
rates
for
certain
ARMs
are
not
based
on
a
published
reference
rate
and
spread
but
may
be
determined
using
a
formula
based
on
the
rates
of
the
underlying
loans.
CLO
Collateralized
Loan
Obligation
CMO
Collateralized
Mortgage
Obligation
FRN
Floating
Rate
Note
GO
General
Obligation
SOFR30A
30-day
Average
SOFR
(Secured
overnight
financing
rate)
STEP
Stepped
coupon
bond
for
which
the
coupon
rate
of
interest
adjusts
on
specified
date(s);
rate
shown
is
effective
rate
at
period-end.
VR
Variable
Rate;
rate
shown
is
effective
rate
at
period-end.
The
rates
for
certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
based
on
current
market
conditions.
T.
ROWE
PRICE
Short
Duration
Income
Fund
17
(Amounts
in
000s)
SWAPS
0.3%
Description
Notional
Amount
$
Value
Upfront
Payments/
$
(Receipts)
Unrealized
$
Gain/(Loss)
BILATERAL
SWAPS
0.3%
Credit
Default
Swaps,
Protection
Bought
0.3%
Goldman
Sachs,
Protection
Bought
(Relevant
Credit:
Markit
CMBX.
NA.BBB-S13,
50
Year
Index),
Pay
3.00%
Monthly,
Receive
upon
credit
default,
12/16/72
585
136
120
16
Total
Bilateral
Credit
Default
Swaps,
Protection
Bought
120
16
Credit
Default
Swaps,
Protection
Sold
0.0%
Barclays
Bank,
Protection
Sold
(Relevant
Credit:
AT&T,
Baa2*),
Receive
1.00%
Quarterly,
Pay
upon
credit
default,
6/20/23
*
250
1
—
1
Total
Bilateral
Credit
Default
Swaps,
Protection
Sold
—
1
Total
Bilateral
Swaps
120
17
Description
Notional
Amount
$
Value
Initial
$
Value
**
Unrealized
$
Gain/(Loss)
CENTRALLY
CLEARED
SWAPS
0.0%
Credit
Default
Swaps,
Protection
Sold
0.0%
Protection
Sold
(Relevant
Credit:
Markit
CDX.NA.IG-S39,
5
Year
Index),
Receive
1.00%
Quarterly,
Pay
upon
credit
default,
12/20/27
1,960
24
22
2
Total
Centrally
Cleared
Credit
Default
Swaps,
Protection
Sold
2
Total
Centrally
Cleared
Swaps
2
Net
payments
(receipts)
of
variation
margin
to
date
(2)
Variation
margin
receivable
(payable)
on
centrally
cleared
swaps
$
—
*
Credit
ratings
as
of
February
28,
2023.
Ratings
shown
are
from
Moody’s
Investors
Service
and
if
Moody’s
does
not
rate
a
security,
then
Standard
&
Poor’s
(S&P)
is
used.
Fitch
is
used
for
securities
that
are
not
rated
by
either
Moody’s
or
S&P.
**
Includes
interest
purchased
or
sold
but
not
yet
collected
of
$2.
T.
ROWE
PRICE
Short
Duration
Income
Fund
18
FUTURES
CONTRACTS
($000s)
Expiration
Date
Notional
Amount
Value
and
Unrealized
Gain
(Loss)
Short,
7
U.S.
Treasury
Notes
five
year
contracts
6/23
(749)
$
1
Short,
4
U.S.
Treasury
Notes
ten
year
contracts
6/23
(447)
—
Long,
59
U.S.
Treasury
Notes
two
year
contracts
6/23
12,020
(26)
Short,
2
Ultra
U.S.
Treasury
Notes
ten
year
contracts
6/23
(234)
1
Net
payments
(receipts)
of
variation
margin
to
date
22
Variation
margin
receivable
(payable)
on
open
futures
contracts
$
(2)
T.
ROWE
PRICE
Short
Duration
Income
Fund
19
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
February
28,
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,
4.60%
$
—
$
—
$
21++
Totals
$
—#
$
—
$
21+
Supplementary
Investment
Schedule
Affiliate
Value
05/31/22
Purchase
Cost
Sales
Cost
Value
02/28/23
T.
Rowe
Price
Government
Reserve
Fund,
4.60%
$
942
¤
¤
$
1,341
Total
$
1,341^
#
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
$21
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
$1,341.
T.
ROWE
PRICE
Short
Duration
Income
Fund
Unaudited
Notes
to
Portfolio
of
Investments
20
T.
Rowe
Price
Short
Duration
Income
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)
T.
ROWE
PRICE
Short
Duration
Income
Fund
21
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
Debt
securities
generally
are
traded
in
the over-the-counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
independent
pricing
services
consider
factors
such
as,
but
not
limited
to,
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
Investments
in
mutual
funds
are
valued
at
the
mutual
fund’s
closing
NAV
per
share
on
the
day
of
valuation.
Futures
contracts
are
valued
at
closing
settlement
prices.
Swaps
are
valued
at
prices
furnished
by
an
independent
pricing
service
or
independent
swap
dealers.
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
Short
Duration
Income
Fund
22
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
February
28,
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
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Fixed
Income
Securities
1
$
—
$
47,555
$
—
$
47,555
Short-Term
Investments
1,286
3,292
—
4,578
Securities
Lending
Collateral
55
—
—
55
Total
Securities
1,341
50,847
—
52,188
Swaps*
—
139
—
139
Futures
Contracts*
2
—
—
2
Total
$
1,343
$
50,986
$
—
$
52,329
Liabilities
Futures
Contracts*
$
26
$
—
$
—
$
26
1
Includes
Asset-Backed
Securities,
Bank
Loans,
Corporate
Bonds,
Foreign
Government
Obligations
&
Municipalities,
Municipal
Securities,
Non-U.S.
Government
Mortgage-Backed
Securities,
U.S.
Government
&
Agency
Mortgage-Backed
Securities
and
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed).
*
The
fair
value
presented
includes
cumulative
gain
(loss)
on
open
futures
contracts
and
centrally
cleared
swaps;
however,
the
net
value
reflected
on
the
accompanying
Portfolio
of
Investments
is
only
the
unsettled
variation
margin
receivable
(payable)
at
that
date.
T.
ROWE
PRICE
Short
Duration
Income
Fund
23
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.
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.
SUBSEQUENT
EVENT
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.
F1305-054Q3
02/23