T.
ROWE
PRICE
Short
Duration
Income
Fund
February
28,
2021
(Unaudited)
1
Portfolio
of
Investments
‡
Par/Shares
$
Value
(Amounts
in
000s)
‡
ASSET-BACKED
SECURITIES
19.1%
Car
Loan
5.6%
AmeriCredit
Automobile
Receivables
Trust
Series 2020-2,
Class
D
2.13%,
3/18/26
120
124
Avis
Budget
Rental
Car
Funding
AESOP
Series 2019-2A,
Class
A
3.35%,
9/22/25 (1)
175
189
GM
Financial
Consumer
Automobile
Receivables
Trust
Series 2020-3,
Class
C
1.37%,
1/16/26
30
31
GM
Financial
Leasing
Trust
Series 2021-1,
Class
D
1.01%,
7/21/25
140
140
Santander
Consumer
Auto
Receivables
Trust
Series 2020-BA,
Class
C
1.29%,
4/15/26 (1)
100
101
Santander
Consumer
Auto
Receivables
Trust
Series 2021-AA,
Class
D
1.57%,
1/15/27 (1)
100
100
Santander
Drive
Auto
Receivables
Trust
Series 2020-1,
Class
C
4.11%,
12/15/25
25
27
Santander
Drive
Auto
Receivables
Trust
Series 2020-2,
Class
D
2.22%,
9/15/26
410
422
Santander
Retail
Auto
Lease
Trust
Series 2019-A,
Class
D
3.66%,
5/20/24 (1)
200
206
World
Omni
Auto
Receivables
Trust
Series 2020-C,
Class
C
1.39%,
5/17/27
85
86
1,426
Credit
Card
0.2%
Synchrony
Card
Funding
Series 2019-A2,
Class
A
2.34%,
6/15/25
50
51
51
Other
Asset-Backed
Securities
9.9%
Applebee's
Funding
Series 2019-1A,
Class
A2I
4.194%,
6/7/49 (1)
150
154
Benefit
Street
Partners
XI
Series 2017-11A,
Class
A2R,
CLO,
FRN
3M
USD
LIBOR
+
1.50%,
1.741%,
4/15/29 (1)
250
248
T.
ROWE
PRICE
Short
Duration
Income
Fund
2
Par/Shares
$
Value
(Amounts
in
000s)
BlueMountain
Series 2012-2A,
Class
AR2,
CLO,
FRN
3M
USD
LIBOR
+
1.05%,
1.232%,
11/20/28 (1)
242
242
CBAM
Series 2019-9A,
Class
B1,
CLO,
FRN
3M
USD
LIBOR
+
1.90%,
2.141%,
2/12/30 (1)
250
250
Cedar
Funding
VII
Series 2018-7A,
Class
B,
CLO,
FRN
3M
USD
LIBOR
+
1.40%,
1.624%,
1/20/31 (1)
250
248
DB
Master
Finance
Series 2019-1A,
Class
A2II,
Series
2019-1A,
Class
A2II
4.021%,
5/20/49 (1)
94
99
Elara
HGV
Timeshare
Issuer
Series 2016-A,
Class
A
2.73%,
4/25/28 (1)
22
23
Elara
HGV
Timeshare
Issuer
Series 2019-A,
Class
A
2.61%,
1/25/34 (1)
141
145
Hardee's
Funding
Series 2018-1A,
Class
A2II
4.959%,
6/20/48 (1)
98
104
KKR
Series 29A,
Class
A,
CLO,
FRN
3M
USD
LIBOR
+
1.20%,
1/15/32 (1)
250
250
MVW
Owner
Trust
Series 2017-1A,
Class
B
2.75%,
12/20/34 (1)
172
176
Neuberger
Berman
XVII
Series 2014-17A,
Class
CR2,
CLO,
FRN
3M
USD
LIBOR
+
2.00%,
2.222%,
4/22/29 (1)
250
249
Octagon
Investment
Partners
Series 2016-1A,
Class
AR,
CLO,
FRN
3M
USD
LIBOR
+
1.18%,
1.398%,
1/24/33 (1)
250
251
Sierra
Timeshare
Receivables
Funding
Series 2016-3A,
Class
B
2.63%,
10/20/33 (1)
111
112
2,551
Student
Loan
3.4%
Navient
Private
Education
Refi
Loan
Trust
Series 2018-A,
Class
A2
3.19%,
2/18/42 (1)
105
107
Navient
Private
Education
Refi
Loan
Trust
Series 2019-A,
Class
A2A
3.42%,
1/15/43 (1)
129
135
Navient
Private
Education
Refi
Loan
Trust
Series 2019-D,
Class
A2A
3.01%,
12/15/59 (1)
149
156
T.
ROWE
PRICE
Short
Duration
Income
Fund
3
Par/Shares
$
Value
(Amounts
in
000s)
Navient
Private
Education
Refi
Loan
Trust
Series 2019-GA,
Class
A
2.40%,
10/15/68 (1)
167
172
Navient
Private
Education
Refi
Loan
Trust
Series 2020-A,
Class
A2A
2.46%,
11/15/68 (1)
100
104
SMB
Private
Education
Loan
Trust
Series 2016-C,
Class
A2A
2.34%,
9/15/34 (1)
52
54
SMB
Private
Education
Loan
Trust
Series 2017-B,
Class
B
3.50%,
12/16/41 (1)
150
155
883
Total
Asset-Backed
Securities
(Cost
$4,888)
4,911
BANK
LOANS
0.5%
(2)
Insurance
0.5%
Asurion,
FRN,
1M
USD
LIBOR
+
3.00%,
3.115%,
11/3/24 (3)
125
125
Total
Bank
Loans
(Cost
$125)
125
CORPORATE
BONDS
37.7%
Banking
7.5%
Banco
Santander,
2.746%,
5/28/25
200
212
Bank
of
Ireland
Group,
4.50%,
11/25/23 (1)
200
219
BBVA
Bancomer,
4.375%,
4/10/24
150
164
Danske
Bank,
5.375%,
1/12/24 (1)
200
225
Deutsche
Bank,
Series D,
5.00%,
2/14/22
150
156
HSBC
Holdings,
4.25%,
3/14/24
200
219
Lloyds
Banking
Group,
4.50%,
11/4/24
200
223
Natwest
Group,
6.00%,
12/19/23
100
114
Societe
Generale,
2.625%,
10/16/24 (1)
200
211
Standard
Chartered,
VR,
0.991%,
1/12/25 (1)(4)
200
200
1,943
Basic
Industry
2.1%
ABJA
Investment,
5.95%,
7/31/24
200
215
ALROSA
Finance,
4.65%,
4/9/24
200
216
Arconic,
6.125%,
2/15/28 (1)
45
48
Cleveland-Cliffs,
9.875%,
10/17/25 (1)
45
53
532
Capital
Goods
0.4%
TransDigm,
8.00%,
12/15/25 (1)
90
98
98
T.
ROWE
PRICE
Short
Duration
Income
Fund
4
Par/Shares
$
Value
(Amounts
in
000s)
Communications
2.8%
CSC
Holdings,
5.25%,
6/1/24
95
102
Globo
Comunicacao
e
Participacoes,
4.843%,
6/8/25
200
210
NTT
Finance,
0.583%,
3/1/24 (1)
200
200
Tower
Bersama
Infrastructure,
4.25%,
1/21/25
200
213
725
Consumer
Cyclical
10.6%
7-Eleven,
0.80%,
2/10/24 (1)
45
45
Burlington
Coat
Factory
Warehouse,
6.25%,
4/15/25 (1)
95
101
Carnival,
9.875%,
8/1/27 (1)
20
23
Cedar
Fair,
5.50%,
5/1/25 (1)
95
99
Clarios
Global,
6.75%,
5/15/25 (1)
95
102
Falabella,
3.75%,
4/30/23
200
211
Ford
Motor,
8.50%,
4/21/23
90
101
General
Motors
Financial,
2.90%,
2/26/25
150
159
Goodyear
Tire
&
Rubber,
9.50%,
5/31/25
90
101
Hyundai
Capital
America,
0.80%,
1/8/24 (1)
150
149
IRB
Holding,
7.00%,
6/15/25 (1)
90
97
L
Brands,
5.625%,
10/15/23
45
49
L
Brands,
6.875%,
7/1/25 (1)
45
49
Longfor
Group
Holdings,
3.90%,
4/16/23
200
210
Marriott
International,
3.60%,
4/15/24
100
107
Meituan,
2.125%,
10/28/25
200
203
Meritor,
6.25%,
6/1/25 (1)
95
102
Nissan
Motor,
3.043%,
9/15/23 (1)
200
210
QVC,
4.375%,
3/15/23
150
157
Royal
Caribbean
Cruises,
5.25%,
11/15/22
50
51
Royal
Caribbean
Cruises,
11.50%,
6/1/25 (1)
70
82
St.
Joseph's
University
Medical
Center,
3.926%,
7/1/22
100
102
Vanke
Real
Estate
Hong
Kong,
4.20%,
6/7/24
200
217
2,727
Consumer
Non-Cyclical
2.2%
Albertsons,
5.875%,
2/15/28 (1)
90
95
Bausch
Health,
7.00%,
1/15/28 (1)
45
49
Bausch
Health
Americas,
8.50%,
1/31/27 (1)
75
83
CD&R
Smokey
Buyer,
6.75%,
7/15/25 (1)
125
134
Performance
Food
Group,
6.875%,
5/1/25 (1)
95
102
Tenet
Healthcare,
7.50%,
4/1/25 (1)
90
98
561
Electric
2.9%
AES,
3.30%,
7/15/25 (1)
100
108
Azure
Power
Energy,
5.50%,
11/3/22
200
205
Engie
Energia
Chile,
4.50%,
1/29/25
200
221
NextEra
Energy
Operating
Partners,
4.25%,
7/15/24 (1)
95
100
T.
ROWE
PRICE
Short
Duration
Income
Fund
5
Par/Shares
$
Value
(Amounts
in
000s)
Pacific
Gas
&
Electric,
4.25%,
8/1/23
100
107
741
Energy
2.6%
Aker
BP,
3.00%,
1/15/25 (1)
150
155
Continental
Resources,
3.80%,
6/1/24
50
51
Continental
Resources,
4.50%,
4/15/23
100
103
Energy
Transfer
Operating,
2.90%,
5/15/25
100
105
Energy
Transfer
Operating,
4.90%,
2/1/24
60
66
EQT,
3.00%,
10/1/22
50
50
Occidental
Petroleum,
6.95%,
7/1/24
75
83
Targa
Resources
Partners,
6.50%,
7/15/27
45
48
661
Finance
Companies
1.4%
AerCap
Ireland
Capital,
4.50%,
9/15/23
150
161
Avolon
Holdings
Funding,
3.95%,
7/1/24 (1)
100
105
Navient,
6.125%,
3/25/24
45
47
Navient,
7.25%,
9/25/23
45
49
362
Financial
Other
1.6%
Hikma
Finance
USA,
3.25%,
7/9/25
200
209
Kuwait
Projects
SPC,
5.00%,
3/15/23
200
203
412
Natural
Gas
0.7%
APT
Pipelines,
3.875%,
10/11/22 (1)
175
183
183
Real
Estate
Investment
Trusts
1.2%
Park
Intermediate
Holdings,
7.50%,
6/1/25 (1)
95
103
Times
China
Holdings,
6.75%,
7/16/23
200
209
312
Technology
0.7%
Fortinet,
1.00%,
3/15/26
55
55
Microchip
Technology,
0.972%,
2/15/24 (1)
125
125
180
Transportation
1.0%
Heathrow
Funding,
4.875%,
7/15/21 (1)
100
102
Sydney
Airport
Finance,
3.90%,
3/22/23 (1)
150
159
261
Total
Corporate
Bonds
(Cost
$9,695)
9,698
T.
ROWE
PRICE
Short
Duration
Income
Fund
6
Par/Shares
$
Value
(Amounts
in
000s)
FOREIGN
GOVERNMENT
OBLIGATIONS
&
MUNICIPALITIES
5.0%
Government
Sponsored
0.8%
MEGlobal
Canada
ULC,
5.00%,
5/18/25
200
222
222
Owned
No
Guarantee
4.2%
Ecopetrol,
5.875%,
9/18/23
200
222
Export-Import
Bank
of
India,
3.875%,
3/12/24
200
215
Petroleos
Mexicanos,
4.875%,
1/18/24
200
208
QNB
Finance,
2.625%,
5/12/25
200
210
Saudi
Electricity
Global
Sukuk,
4.222%,
1/27/24
200
217
1,072
Total
Foreign
Government
Obligations
&
Municipalities
(Cost
$1,292)
1,294
MUNICIPAL
SECURITIES
1.7%
Florida
0.4%
Miami-Dade
County,
Series B,
1.154%,
10/1/25
100
99
99
Illinois
0.4%
Chicago
Transit
Auth.
Sales
Tax
Receipts
Fund,
Series B,
1.838%,
12/1/23
100
103
103
Michigan
0.5%
Detroit,
Social
Bonds,
Series B,
GO,
2.189%,
4/1/24
125
125
125
New
York
0.4%
Metropolitan
Transportation
Auth.,
Series B-1,
BAN,
5.00%,
5/15/22
100
105
105
Total
Municipal
Securities
(Cost
$430)
432
NON-U.S.
GOVERNMENT
MORTGAGE-BACKED
SECURITIES
19.6%
Collateralized
Mortgage
Obligations
10.1%
Angel
Oak
Mortgage
Trust
Series 2020-6,
Class
A1,
CMO,
ARM
1.261%,
5/25/65 (1)
82
82
Angel
Oak
Mortgage
Trust
I
Series 2019-2,
Class
M1,
CMO,
ARM
4.065%,
3/25/49 (1)
100
104
T.
ROWE
PRICE
Short
Duration
Income
Fund
7
Par/Shares
$
Value
(Amounts
in
000s)
Bayview
Mortgage
Fund
IVb
Trust
Series 2017-RT3,
Class
A,
CMO,
ARM
3.50%,
1/28/58 (1)
75
75
COLT
Mortgage
Loan
Trust
Series 2020-3,
Class
A1,
CMO,
ARM
1.506%,
4/27/65 (1)
107
108
Deephaven
Residential
Mortgage
Trust
Series 2021-1,
Class
A3,
CMO,
ARM
1.128%,
5/25/65 (1)
100
100
Flagstar
Mortgage
Trust
Series 2019-1INV,
Class
A11,
CMO,
ARM
1M
USD
LIBOR
+
0.95%,
1.068%,
10/25/49 (1)
51
51
Flagstar
Mortgage
Trust
Series 2020-1INV,
Class
A11,
CMO,
ARM
1M
USD
LIBOR
+
0.85%,
0.968%,
3/25/50 (1)
69
69
New
Residential
Mortgage
Loan
Trust
Series 2021-NQ1R,
Class
A3,
CMO,
ARM
1.198%,
7/25/55 (1)
200
200
OBX
Trust
Series 2019-INV1,
Class
A3,
CMO,
ARM
4.50%,
11/25/48 (1)
152
158
Starwood
Mortgage
Residential
Trust
Series 2020-INV1,
Class
A3,
CMO,
ARM
1.593%,
11/25/55 (1)
94
94
Starwood
Mortgage
Residential
Trust
Series 2020-INV1,
Class
M1,
CMO
2.501%,
11/25/55 (1)
100
101
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-DNA2,
Class
M2,
CMO,
ARM
1M
USD
LIBOR
+
1.85%,
1.968%,
2/25/50 (1)
205
205
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-DNA5,
Class
M2,
CMO,
ARM
SOFR30A
+
2.80%,
2.845%,
10/25/50 (1)
150
151
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-DNA6,
Class
M1,
CMO,
ARM
SOFR30A
+
0.90%,
0.945%,
12/25/50 (1)
295
295
Structured
Agency
Credit
Risk
Debt
Notes
Series 2020-HQA1,
Class
M2,
CMO,
ARM
1M
USD
LIBOR
+
1.90%,
2.018%,
1/25/50 (1)
150
150
Structured
Agency
Credit
Risk
Debt
Notes
Series 2021-HQA1,
Class
M2,
CMO,
ARM
SOFR30A
+
2.25%,
2.30%,
8/25/33 (1)
200
200
Towd
Point
Mortgage
Trust
Series 2016-5,
Class
A1,
CMO,
ARM
2.50%,
10/25/56 (1)
139
142
Verus
Securitization
Trust
Series 2019-4,
Class
A1,
CMO,
STEP
2.642%,
11/25/59 (1)
57
59
T.
ROWE
PRICE
Short
Duration
Income
Fund
8
Par/Shares
$
Value
(Amounts
in
000s)
Verus
Securitization
Trust
Series 2020-1,
Class
A3,
CMO,
STEP
2.724%,
1/25/60 (1)
142
145
Verus
Securitization
Trust
Series 2021-R1,
Class
M1,
CMO
2.338%,
10/25/63 (1)
100
101
2,590
Commercial
Mortgage-Backed
Securities
9.5%
BANK
Series 2019-BN23,
Class
A1
1.975%,
12/15/52
65
66
BX
Commercial
Mortgage
Trust
Series 2019-IMC,
Class
A,
ARM
1M
USD
LIBOR
+
1.00%,
1.112%,
4/15/34 (1)
160
160
BX
Commercial
Mortgage
Trust
Series 2020-BXLP,
Class
F,
ARM
1M
USD
LIBOR
+
2.00%,
2.112%,
12/15/36 (1)
100
100
BX
Trust
Series 2018-GW,
Class
D,
ARM
1M
USD
LIBOR
+
1.77%,
1.882%,
5/15/35 (1)
125
125
CD
Mortgage
Trust
Series 2016-CD1,
Class
B,
ARM
3.077%,
8/10/49
100
104
Citigroup
Commercial
Mortgage
Trust
Series 2013-375P,
Class
B,
ARM
3.518%,
5/10/35 (1)
150
156
Citigroup
Commercial
Mortgage
Trust
Series 2019-SST2,
Class
E,
ARM
1M
USD
LIBOR
+
2.00%,
2.112%,
12/15/36 (1)
150
150
Cold
Storage
Trust
Series 2020-ICE5,
Class
C,
ARM
1M
USD
LIBOR
+
1.65%,
1.762%,
11/15/37 (1)
147
148
Commercial
Mortgage
Trust
Series 2013-300P,
Class
A1
4.353%,
8/10/30 (1)
146
156
Commercial
Mortgage
Trust
Series 2015-CR22,
Class
C,
ARM
4.106%,
3/10/48
100
108
Credit
Suisse
Mortgage
Capital
Certificates
Series 2020-TMIC,
Class
A,
ARM
1M
USD
LIBOR
+
3.00%,
3.25%,
12/15/35 (1)
150
152
Eleven
Madison
Mortgage
Trust
Series 2015-11MD,
Class
A,
ARM
3.555%,
9/10/35 (1)
170
186
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series 2018-WPT,
Class
BFL,
ARM
1M
USD
LIBOR
+
1.25%,
1.50%,
7/5/33 (1)
59
59
T.
ROWE
PRICE
Short
Duration
Income
Fund
9
Par/Shares
$
Value
(Amounts
in
000s)
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
Series 2020-609M,
Class
B,
ARM
1M
USD
LIBOR
+
1.77%,
1.883%,
10/15/33 (1)
100
100
Merit
Series 2020-HILL,
Class
B,
ARM
1M
USD
LIBOR
+
1.40%,
1.512%,
8/15/37 (1)
210
211
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series 2014-C17,
Class
A5
3.741%,
8/15/47
39
42
Morgan
Stanley
Capital
I
Trust
Series 2019-NUGS,
Class
D,
ARM
1M
USD
LIBOR
+
1.80%,
3.30%,
12/15/36 (1)
125
126
One
Market
Plaza
Trust
Series 2017-1MKT,
Class
A
3.614%,
2/10/32 (1)
130
135
Wells
Fargo
Commercial
Mortgage
Trust
Series 2019-JWDR,
Class
A,
ARM
2.501%,
9/15/31 (1)
150
154
2,438
Total
Non-U.S.
Government
Mortgage-Backed
Securities
(Cost
$4,997)
5,028
U.S.
GOVERNMENT
AGENCY
OBLIGATIONS
(EXCLUDING
MORTGAGE-BACKED)
13.9%
U.S.
Treasury
Obligations
13.9%
U.S.
Treasury
Notes,
0.125%,
11/30/22 (5)
2,800
2,800
U.S.
Treasury
Notes,
0.125%,
1/31/23
470
470
U.S.
Treasury
Notes,
0.125%,
2/28/23
300
300
Total
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed)
(Cost
$3,569)
3,570
SHORT-TERM
INVESTMENTS
5.4%
Commercial
Paper
1.9%
4(2)
1.9%(6)
Ovintiv,
1.00%,
3/16/21
250
250
Plains
All
American
Pipeline,
0.55%,
3/4/21
250
250
500
T.
ROWE
PRICE
Short
Duration
Income
Fund
10
Par/Shares
$
Value
(Amounts
in
000s)
Money
Market
Funds
3.5%
T.
Rowe
Price
Government
Reserve
Fund,
0.05% (7)(8)
896
896
896
Total
Short-Term
Investments
(Cost
$1,396)
1,396
(Amounts
in
000s,
except
for
contracts)
Options
Purchased
0.0%
OTC
Options
Purchased
0.0%
Counterparty
Description
Contracts
Notional
Amount
$
Value
Morgan
Stanley
Credit
Default
Swap,
Protection
Sold
(Relevant
Credit:
Markit
CDX.NA.IG-S35,
5
Year
Index,
12/20/25),
Receive
1.00%
Quarterly,
Pay
upon
credit
default,
3/17/21
@
0.45%* (9)
1
1,000
—
Total
Options
Purchased
(Cost
$1)
—
Total
Investments
in
Securities
102.9%
(Cost
$26,393)
$
26,454
Other
Assets
Less
Liabilities
(2.9)%
(740)
Net
Assets
100.0%
$
25,714
‡
Par/Shares
and
Notional
Amount
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
*
Exercise
Spread
(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
$12,752
and
represents
49.6%
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)
All
or
a
portion
of
this
loan
is
unsettled
as
of
February
28,
2021.
The
interest
rate
for
unsettled
loans
will
be
determined
upon
settlement
after
period
end.
(4)
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
is
provided
if
the
rate
is
currently
floating.
T.
ROWE
PRICE
Short
Duration
Income
Fund
11
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(5)
At
February
28,
2021,
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
$500
and
represents
1.9%
of
net
assets.
(7)
Seven-day
yield
(8)
Affiliated
Companies
(9)
Non-income
producing
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.
BAN
Bond
Anticipation
Note
CLO
Collateralized
Loan
Obligation
CMO
Collateralized
Mortgage
Obligation
FRN
Floating
Rate
Note
GO
General
Obligation
JPY
Japanese
Yen
OTC
Over-the-counter
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.
USD
U.S.
Dollar
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
12
(Amounts
in
000s,
except
for
contracts)
OPTIONS
WRITTEN
(0.0)%
OTC
Options
Written
(0.0)%
Counterparty
Description
Contracts
Notional
Amount
$
Value
Morgan
Stanley
Credit
Default
Swap,
Protection
Bought
(Relevant
Credit:
Markit
CDX.
NA.IG-S35,
5
Year
Index,
12/20/25),
Pay
1.00%
Quarterly,
Receive
upon
credit
default,
3/17/21
@
0.80%*
1
1,000
—
Total
Options
Written
(Premiums
$(1))
$
—
T.
ROWE
PRICE
Short
Duration
Income
Fund
13
(Amounts
in
000s)
FORWARD
CURRENCY
EXCHANGE
CONTRACTS
Counterparty
Settlement
Receive
Deliver
Unrealized
Gain/(Loss)
HSBC
Bank
3/22/21
USD
1,054
JPY
108,700
$
34
Morgan
Stanley
3/22/21
JPY
108,700
USD
1,031
(11)
Net
unrealized
gain
(loss)
on
open
forward
currency
exchange
contracts
$
23
T.
ROWE
PRICE
Short
Duration
Income
Fund
14
FUTURES
CONTRACTS
($000s)
Expiration
Date
Notional
Amount
Value
and
Unrealized
Gain
(Loss)
Short,
27
U.S.
Treasury
Notes
five
year
contracts
6/21
(3,347)
$
27
Short,
3
U.S.
Treasury
Notes
ten
year
contracts
6/21
(398)
5
Long,
17
U.S.
Treasury
Notes
two
year
contracts
6/21
3,753
(3)
Net
payments
(receipts)
of
variation
margin
to
date
(30)
Variation
margin
receivable
(payable)
on
open
futures
contracts
$
(1)
T.
ROWE
PRICE
Short
Duration
Income
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
nine
months
ended
February
28,
2021.
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,
0.05%
$
—#
$
—
$
—+
Supplementary
Investment
Schedule
Affiliate
Value
05/31/20
Purchase
Cost
Sales
Cost
Value
02/28/21
T.
Rowe
Price
Government
Reserve
Fund,
0.05%
$
—
¤
¤
$
896^
#
Capital
gain
distributions
from
mutual
funds
represented
$0
of
the
net
realized
gain
(loss).
+
Investment
income
comprised
$0
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
$896.
T.
ROWE
PRICE
Short
Duration
Income
Fund
Unaudited
Notes
to
Portfolio
of
Investments
16
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
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
T.
Rowe
Price
Valuation
Committee
(the
Valuation
Committee)
is
an
internal
committee
that
has
been
delegated
certain
responsibilities
by
the
fund’s
Board
of
Directors
(the
Board)
to
ensure
that
financial
instruments
are
appropriately
priced
at
fair
value
in
accordance
with
GAAP
and
the
1940
Act.
Subject
to
oversight
by
the
Board,
the
Valuation
Committee
develops
and
oversees
pricing-related
policies
and
procedures
and
approves
all
fair
value
determinations.
Specifically,
the
Valuation
Committee
establishes
policies
and
procedures
used
in
valuing
financial
instruments,
including
those
which
cannot
be
valued
in
accordance
with
normal
procedures
or
using
pricing
vendors;
determines
pricing
techniques,
sources,
and
persons
eligible
to
effect
fair
value
pricing
actions;
evaluates
the
services
and
performance
of
the
pricing
vendors;
oversees
the
pricing
process
to
ensure
policies
and
procedures
are
being
followed;
and
provides
guidance
on
internal
controls
and
valuation-related
matters.
The
Valuation
Committee
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
T.
ROWE
PRICE
Short
Duration
Income
Fund
17
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
fund's
own
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
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.
Listed
options,
and
OTC
options
with
a
listed
equivalent,
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
and
exchange-traded
options
on
futures
contracts
are
valued
at
closing
settlement
prices.
Futures
contracts
are
valued
at
closing
settlement
prices.
Forward
currency
exchange
contracts
are
valued
using
the
prevailing
forward
exchange
rate.
Investments
for
which
market
quotations
or
market-based
valuations
are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Committee,
in
accordance
with
fair
valuation
policies
and
procedures.
The
objective
of
any
fair
value
pricing
determination
is
to
arrive
at
a
price
that
could
reasonably
be
expected
from
a
current
sale.
Financial
instruments
fair
valued
by
the
Valuation
Committee
are
primarily
private
placements,
restricted
securities,
warrants,
T.
ROWE
PRICE
Short
Duration
Income
Fund
18
rights,
and
other
securities
that
are
not
publicly
traded.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Committee
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
Committee
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
and
updated
as
information
becomes
available,
including
actual
purchase
and
sale
transactions
of
the
investment.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions,
and
fair
value
prices
determined
by
the
Valuation
Committee
could
differ
from
those
of
other
market
participants.
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
February
28,
2021
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
T.
ROWE
PRICE
Short
Duration
Income
Fund
19
F1305-054Q3
02/21
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Fixed
Income
Securities
1
$
—
$
25,058
$
—
$
25,058
Short-Term
Investments
896
500
—
1,396
Options
Purchased
—
—
—
—
Total
Securities
896
25,558
—
26,454
Forward
Currency
Exchange
Contracts
—
34
—
34
Futures
Contracts*
32
—
—
32
Total
$
928
$
25,592
$
—
$
26,520
Liabilities
Options
Written
$
—
$
—
$
—
$
—
Forward
Currency
Exchange
Contracts
—
11
—
11
Futures
Contracts*
3
—
—
3
Total
$
3
$
11
$
—
$
14
1
Includes
Asset-Backed
Securities,
Bank
Loans,
Corporate
Bonds,
Foreign
Government
Obligations
&
Municipalities,
Municipal
Securities,
Non-U.S.
Government
Mortgage-Backed
Securities
and
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed).
*
The
fair
value
presented
includes
cumulative
gain
(loss)
on
open
futures
contracts;
however,
the
net
value
reflected
on
the
accompanying
Portfolio
of
Investments
is
only
the
unsettled
variation
margin
receivable
(payable)
at
that
date.