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T. Rowe Price Short Term Bond Fund (PRWBX) NPORT-PT. Rowe Price Short Duration Income Fund (Feb 2022 report)

Filed: 25 Apr 22, 4:25pm

T.

ROWE

PRICE

Short

Duration

Income

Fund

February

28,

2022

(Unaudited)

1

Portfolio

of

Investments

‡

Par/Shares

$

Value

(Amounts

in

000s)

‡

ASSET-BACKED

SECURITIES

18.1%

Car

Loan

4.9%

AmeriCredit

Automobile

Receivables

Trust

Series 2020-2,

Class

D

2.13%,

3/18/26

120‌

120‌

Carmax

Auto

Owner

Trust

Series 2020-1,

Class

D

2.64%,

7/15/26

115‌

115‌

CarMax

Auto

Owner

Trust

Series 2021-2,

Class

C

1.34%,

2/16/27

250‌

242‌

Drive

Auto

Receivables

Trust

Series 2021-1,

Class

D

1.45%,

1/16/29

150‌

147‌

Exeter

Automobile

Receivables

Trust

Series 2021-2A,

Class

C

0.98%,

6/15/26

75‌

74‌

GM

Financial

Consumer

Automobile

Receivables

Trust

Series 2020-3,

Class

C

1.37%,

1/16/26

30‌

30‌

GM

Financial

Consumer

Automobile

Receivables

Trust

Series 2020-4,

Class

C

1.05%,

5/18/26

50‌

49‌

GM

Financial

Leasing

Trust

Series 2021-1,

Class

D

1.01%,

7/21/25

140‌

137‌

JPMorgan

Chase

Bank

Series 2021-2,

Class

D

1.138%,

12/26/28 (1)

193‌

191‌

Santander

Bank

-

SBCLN

Series 2021-1A,

Class

C

3.268%,

12/15/31 (1)

520‌

516‌

Santander

Consumer

Auto

Receivables

Trust

Series 2020-BA,

Class

C

1.29%,

4/15/26 (1)

100‌

99‌

Santander

Consumer

Auto

Receivables

Trust

Series 2021-AA,

Class

D

1.57%,

1/15/27 (1)

100‌

97‌

Santander

Consumer

Auto

Receivables

Trust

Series 2021-CA,

Class

C

2.97%,

6/15/28 (1)

300‌

300‌

Santander

Retail

Auto

Lease

Trust

Series 2021-C,

Class

D

1.39%,

8/20/26 (1)

350‌

341‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

2

Par/Shares

$

Value

(Amounts

in

000s)

‡

World

Omni

Auto

Receivables

Trust

Series 2020-C,

Class

C

1.39%,

5/17/27

85‌

83‌

2,541‌

Other

Asset-Backed

Securities

11.3%

Applebee's

Funding

Series 2019-1A,

Class

A2I

4.194%,

6/5/49 (1)

248‌

247‌

Benefit

Street

Partners

XI

Series 2017-11A,

Class

A2R,

CLO,

FRN

3M

USD

LIBOR

+

1.50%,

1.741%,

4/15/29 (1)

250‌

248‌

Blackbird

Capital

Aircraft

Lease

Securitization

Series 2016-1A,

Class

AA,

STEP

2.487%,

12/16/41 (1)

91‌

89‌

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%,

1.654%,

1/20/31 (1)

250‌

246‌

Cedar

Funding

XIV

Series 2021-14A,

Class

A,

CLO,

FRN

3M

USD

LIBOR

+

1.10%,

1.341%,

7/15/33 (1)

375‌

373‌

DB

Master

Finance

Series 2019-1A,

Class

A2II

4.021%,

5/20/49 (1)

93‌

95‌

Elara

HGV

Timeshare

Issuer

Series 2016-A,

Class

A

2.73%,

4/25/28 (1)

15‌

15‌

Elara

HGV

Timeshare

Issuer

Series 2019-A,

Class

A

2.61%,

1/25/34 (1)

97‌

96‌

FOCUS

Brands

Funding

Series 2018-1,

Class

A2

5.184%,

10/30/48 (1)

266‌

273‌

Hardee's

Funding

Series 2018-1A,

Class

A2II

4.959%,

6/20/48 (1)

242‌

250‌

Hilton

Grand

Vacations

Trust

Series 2017-AA,

Class

B

2.96%,

12/26/28 (1)

101‌

101‌

Hilton

Grand

Vacations

Trust

Series 2019-AA,

Class

B

2.54%,

7/25/33 (1)

143‌

142‌

KKR

Series 29A,

Class

A,

CLO,

FRN

3M

USD

LIBOR

+

1.20%,

1.441%,

1/15/32 (1)

250‌

251‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

3

Par/Shares

$

Value

(Amounts

in

000s)

‡

Madison

Park

Funding

XXIII

Series 2017-23A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

0.97%,

1.238%,

7/27/31 (1)

250‌

250‌

Madison

Park

Funding

XXXVII

Series 2019-37A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.07%,

1.311%,

7/15/33 (1)

250‌

249‌

MVW

Series 2021-1WA,

Class

C

1.94%,

1/22/41 (1)

96‌

93‌

MVW

Owner

Trust

Series 2017-1A,

Class

B

2.75%,

12/20/34 (1)

111‌

111‌

Neuberger

Berman

Loan

Advisers

Series 2017-26A,

Class

BR,

CLO,

FRN

3M

USD

LIBOR

+

1.40%,

1.641%,

10/18/30 (1)

255‌

252‌

Neuberger

Berman

XVII

Series 2014-17A,

Class

CR2,

CLO,

FRN

3M

USD

LIBOR

+

2.00%,

2.259%,

4/22/29 (1)

250‌

249‌

OCP

Series 2014-7A,

Class

A1RR,

CLO,

FRN

3M

USD

LIBOR

+

1.12%,

1.374%,

7/20/29 (1)

300‌

299‌

OCP

Series 2017-13A,

Class

A2R,

CLO,

FRN

3M

USD

LIBOR

+

1.55%,

1.791%,

7/15/30 (1)

250‌

248‌

Octagon

Investment

Partners

Series 2016-1A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.18%,

1.439%,

1/24/33 (1)

250‌

251‌

Octane

Receivables

Trust

Series 2021-2A,

Class

A

1.21%,

9/20/28 (1)

88‌

87‌

Planet

Fitness

Master

Issuer

Series 2018-1A,

Class

A2II

4.666%,

9/5/48 (1)

198‌

201‌

Sierra

Timeshare

Receivables

Funding

Series 2021-1A,

Class

B

1.34%,

11/20/37 (1)

176‌

171‌

Sierra

Timeshare

Receivables

Funding

Series 2021-1A,

Class

C

1.79%,

11/20/37 (1)

59‌

58‌

Sonic

Capital

Series 2020-1A,

Class

A2I

3.845%,

1/20/50 (1)

148‌

150‌

Symphony

Static

I

Series 2021-1A,

Class

C,

CLO,

FRN

3M

USD

LIBOR

+

1.85%,

1.979%,

10/25/29 (1)

250‌

249‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

4

Par/Shares

$

Value

(Amounts

in

000s)

‡

Symphony

XXIII

Series 2020-23A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.02%,

1.261%,

1/15/34 (1)

250‌

249‌

5,843‌

Student

Loan

1.9%

Navient

Private

Education

Refi

Loan

Trust

Series 2018-A,

Class

A2

3.19%,

2/18/42 (1)

34‌

34‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-A,

Class

A2A

3.42%,

1/15/43 (1)

71‌

72‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-D,

Class

A2A

3.01%,

12/15/59 (1)

119‌

121‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-GA,

Class

A

2.40%,

10/15/68 (1)

90‌

90‌

Navient

Private

Education

Refi

Loan

Trust

Series 2020-A,

Class

A2A

2.46%,

11/15/68 (1)

94‌

92‌

Nelnet

Student

Loan

Trust

Series 2021-CA,

Class

AFX

1.32%,

4/20/62 (1)

306‌

292‌

SMB

Private

Education

Loan

Trust

Series 2016-C,

Class

A2A

2.34%,

9/15/34 (1)

38‌

38‌

SMB

Private

Education

Loan

Trust

Series 2017-B,

Class

B

3.50%,

12/16/41 (1)

150‌

151‌

SMB

Private

Education

Loan

Trust

Series 2020-A,

Class

A2A

2.23%,

9/15/37 (1)

88‌

87‌

977‌

Total

Asset-Backed

Securities

(Cost

$9,492)

9,361‌

BANK

LOANS

2.3%

(2)

Consumer

Cyclical

0.3%

Delta

2,

FRN,

3M

USD

LIBOR

+

2.50%,

3.50%,

2/1/24

185‌

183‌

183‌

Consumer

Non-Cyclical

0.9%

PetVet

Care

Centers,

FRN,

1M

USD

LIBOR

+

3.50%,

4.25%,

2/14/25

199‌

198‌

Surgery

Center

Holdings,

FRN,

1M

USD

LIBOR

+

3.75%,

4.50%,

8/31/26

253‌

251‌

449‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

5

Par/Shares

$

Value

(Amounts

in

000s)

‡

Insurance

0.7%

Asurion,

FRN,

1M

USD

LIBOR

+

3.00%,

3.209%,

11/3/24

178‌

176‌

HUB

International,

FRN,

1M

USD

LIBOR

+

2.75%,

2.942%,

4/25/25

190‌

187‌

363‌

Technology

0.4%

Applied

Systems,

FRN,

1M

USD

LIBOR

+

3.00%,

3.50%,

9/19/24

199‌

198‌

198‌

Total

Bank

Loans

(Cost

$1,204)

1,193‌

CORPORATE

BONDS

36.0%

Banking

8.3%

AIB

Group,

4.75%,

10/12/23 (1)

200‌

207‌

Banco

de

Bogota,

6.25%,

5/12/26

200‌

201‌

Banco

de

Credito

del

Peru,

4.25%,

4/1/23

200‌

204‌

Banco

Santander,

2.746%,

5/28/25

200‌

200‌

Banco

Santander

Mexico

Institucion

de

Banca

Multiple

Grupo

Financiero

Santand,

5.375%,

4/17/25

150‌

160‌

Bank

of

America,

VR,

0.976%,

4/22/25 (3)

350‌

339‌

Bank

of

Ireland

Group,

4.50%,

11/25/23 (1)

200‌

206‌

BBVA

Bancomer,

4.375%,

4/10/24

150‌

155‌

Citigroup,

VR,

0.981%,

5/1/25 (3)

150‌

146‌

Credit

Suisse

Group,

VR,

2.997%,

12/14/23 (1)(3)

250‌

252‌

Danske

Bank,

5.375%,

1/12/24 (1)

200‌

210‌

Goldman

Sachs

Group,

VR,

0.673%,

3/8/24 (3)

220‌

217‌

Goldman

Sachs

Group,

VR,

1.757%,

1/24/25 (3)

175‌

173‌

HSBC

Holdings,

4.25%,

3/14/24

200‌

207‌

JPMorgan

Chase,

VR,

0.824%,

6/1/25 (3)

145‌

140‌

Lloyds

Banking

Group,

4.50%,

11/4/24

200‌

209‌

Morgan

Stanley,

VR,

0.731%,

4/5/24 (3)

210‌

207‌

Shinhan

Bank,

1.375%,

10/21/26

200‌

192‌

Societe

Generale,

2.625%,

10/16/24 (1)

200‌

199‌

Standard

Chartered,

VR,

0.991%,

1/12/25 (1)(3)

200‌

193��

UniCredit,

3.75%,

4/12/22 (1)

300‌

301‌

4,318‌

Basic

Industry

2.2%

ABJA

Investment,

5.95%,

7/31/24

200‌

212‌

ALROSA

Finance,

4.65%,

4/9/24

200‌

141‌

ArcelorMittal,

3.60%,

7/16/24

130‌

133‌

Arconic,

6.125%,

2/15/28 (1)

170‌

174‌

Celulosa

Arauco

y

Constitucion,

4.50%,

8/1/24

200‌

207‌

Cleveland-Cliffs,

9.875%,

10/17/25 (1)

30‌

33‌

Suzano

Austria,

5.75%,

7/14/26

200‌

219‌

Westlake,

0.875%,

8/15/24

25‌

24‌

1,143‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

6

Par/Shares

$

Value

(Amounts

in

000s)

‡

Capital

Goods

0.2%

TransDigm,

8.00%,

12/15/25 (1)

90‌

94‌

94‌

Communications

2.4%

AT&T,

0.90%,

3/25/24

115‌

113‌

CSC

Holdings,

5.25%,

6/1/24

95‌

96‌

Gray

Television,

7.00%,

5/15/27 (1)

130‌

137‌

HTA

Group,

7.00%,

12/18/25

200‌

203‌

iHeartCommunications,

5.25%,

8/15/27 (1)

155‌

153‌

Sprint,

7.125%,

6/15/24

170‌

184‌

Tower

Bersama

Infrastructure,

4.25%,

1/21/25

200‌

207‌

Townsquare

Media,

6.875%,

2/1/26 (1)

165‌

169‌

1,262‌

Consumer

Cyclical

7.3%

7-Eleven,

0.80%,

2/10/24 (1)

45‌

44‌

Bath

&

Body

Works,

7.50%,

6/15/29

160‌

176‌

Carnival,

9.875%,

8/1/27 (1)

20‌

22‌

Carnival,

10.50%,

2/1/26 (1)

105‌

118‌

Clarios

Global,

6.75%,

5/15/25 (1)

85‌

88‌

Daimler

Trucks

Finance

North

America,

1.625%,

12/13/24 (1)

170‌

167‌

General

Motors

Financial,

1.05%,

3/8/24

150‌

146‌

General

Motors

Financial,

2.90%,

2/26/25

150‌

151‌

Goodyear

Tire

&

Rubber,

9.50%,

5/31/25

90‌

96‌

Hyatt

Hotels,

1.30%,

10/1/23

60‌

59‌

Hyundai

Capital

America,

0.80%,

1/8/24 (1)

150‌

146‌

Hyundai

Capital

America,

0.875%,

6/14/24 (1)

180‌

174‌

IRB

Holding,

7.00%,

6/15/25 (1)

90‌

94‌

Jaguar

Land

Rover

Automotive,

7.75%,

10/15/25 (1)

200‌

210‌

Marriott

International,

3.125%,

2/15/23

100‌

101‌

Marriott

International,

3.60%,

4/15/24

100‌

103‌

MercadoLibre,

2.375%,

1/14/26

200‌

187‌

Meritor,

6.25%,

6/1/25 (1)

95‌

99‌

Nissan

Motor,

3.043%,

9/15/23 (1)

200‌

202‌

Nordstrom,

2.30%,

4/8/24

155‌

149‌

Photo

Holdings

Merger

Sub,

8.50%,

10/1/26 (1)

165‌

163‌

Prime

Security

Services

Borrower,

5.25%,

4/15/24 (1)

150‌

153‌

QVC,

4.375%,

3/15/23

150‌

152‌

QVC,

4.85%,

4/1/24

150‌

152‌

Royal

Caribbean

Cruises,

5.25%,

11/15/22

105‌

105‌

Royal

Caribbean

Cruises,

11.50%,

6/1/25 (1)

42‌

46‌

St.

Joseph's

University

Medical

Center,

3.926%,

7/1/22

100‌

101‌

Stellantis

Finance

U.S.,

1.711%,

1/29/27 (1)

200‌

190‌

Tenneco,

7.875%,

1/15/29 (1)

200‌

209‌

3,803‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

7

Par/Shares

$

Value

(Amounts

in

000s)

‡

Consumer

Non-Cyclical

2.3%

Brunswick,

0.85%,

8/18/24

115‌

111‌

CD&R

Smokey

Buyer,

6.75%,

7/15/25 (1)

175‌

181‌

Hikma

Finance

USA,

3.25%,

7/9/25

200‌

198‌

Kimberly-Clark

de

Mexico,

3.80%,

4/8/24

200‌

207‌

Legacy

LifePoint

Health,

6.75%,

4/15/25 (1)

170‌

175‌

Performance

Food

Group,

6.875%,

5/1/25 (1)

95‌

98‌

Teva

Pharmaceutical

Finance

Netherlands

III,

6.00%,

4/15/24

200‌

203‌

1,173‌

Electric

2.9%

AES,

3.30%,

7/15/25 (1)

100‌

101‌

Alexander

Funding

Trust,

1.841%,

11/15/23 (1)

200‌

197‌

Engie

Energia

Chile,

4.50%,

1/29/25

200‌

206‌

NextEra

Energy

Operating

Partners,

4.25%,

7/15/24 (1)

95‌

96‌

NRG

Energy,

3.75%,

6/15/24 (1)

150‌

153‌

Pacific

Gas

&

Electric,

1.75%,

6/16/22

460‌

460‌

Pacific

Gas

&

Electric,

3.50%,

6/15/25

100‌

101‌

Vistra

Operations,

3.55%,

7/15/24 (1)

200‌

201‌

1,515‌

Energy

3.6%

Aker

BP,

3.00%,

1/15/25 (1)

150‌

151‌

Continental

Resources,

3.80%,

6/1/24

50‌

51‌

Continental

Resources,

4.50%,

4/15/23

100‌

102‌

Energy

Transfer,

2.90%,

5/15/25

100‌

100‌

Energy

Transfer,

4.90%,

2/1/24

60‌

62‌

Gray

Oak

Pipeline,

2.00%,

9/15/23 (1)

100‌

100‌

Leviathan

Bond,

5.75%,

6/30/23 (1)

200‌

201‌

Occidental

Petroleum,

6.95%,

7/1/24

160‌

174‌

Southwestern

Energy,

8.375%,

9/15/28

175‌

191‌

Tallgrass

Energy

Partners,

7.50%,

10/1/25 (1)

170‌

178‌

Targa

Resources

Partners,

6.50%,

7/15/27

45‌

48‌

Targa

Resources

Partners,

6.875%,

1/15/29

255‌

277‌

Thaioil

Treasury

Center,

3.625%,

1/23/23

200‌

202‌

1,837‌

Finance

Companies

1.6%

AerCap

Ireland

Capital,

1.65%,

10/29/24

215‌

209‌

AerCap

Ireland

Capital,

4.50%,

9/15/23

150‌

154‌

Avolon

Holdings

Funding,

3.95%,

7/1/24 (1)

100‌

102‌

Navient,

6.125%,

3/25/24

135‌

139‌

Navient,

7.25%,

9/25/23

27‌

28‌

SMBC

Aviation

Capital

Finance,

4.125%,

7/15/23 (1)

200‌

206‌

838‌

Financial

Other

1.6%

Dar

Al-Arkan

Sukuk,

6.875%,

3/21/23

200‌

205‌

EMG

SUKUK,

4.564%,

6/18/24

200‌

206‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

8

Par/Shares

$

Value

(Amounts

in

000s)

‡

Kuwait

Projects

SPC,

5.00%,

3/15/23

200‌

200‌

MAF

Global

Securities,

4.75%,

5/7/24

200‌

207‌

818‌

Insurance

1.6%

Athene

Global

Funding,

1.716%,

1/7/25 (1)

225‌

220‌

Brighthouse

Financial

Global

Funding,

1.00%,

4/12/24 (1)

25‌

24‌

CNO

Global

Funding,

1.65%,

1/6/25 (1)

150‌

147‌

Humana,

1.35%,

2/3/27

70‌

66‌

Jackson

Financial,

1.125%,

11/22/23 (1)

120‌

118‌

Jackson

National

Life

Global

Funding,

1.75%,

1/12/25 (1)

250‌

245‌

820‌

Owned

No

Guarantee

0.8%

Bank

Negara

Indonesia

Persero,

3.75%,

3/30/26

200‌

198‌

Lamar

Funding,

3.958%,

5/7/25

200‌

197‌

395‌

Real

Estate

Investment

Trusts

0.4%

Park

Intermediate

Holdings,

7.50%,

6/1/25 (1)

95‌

99‌

Service

Properties

Trust,

7.50%,

9/15/25

35‌

37‌

Starwood

Property

Trust,

3.75%,

12/31/24 (1)

50‌

49‌

185‌

Technology

0.5%

CDW,

5.50%,

12/1/24

55‌

57‌

Microchip

Technology,

0.972%,

2/15/24

125‌

122‌

Skyworks

Solutions,

0.90%,

6/1/23

20‌

20‌

VMware,

0.60%,

8/15/23

70‌

69‌

268‌

Transportation

0.3%

Sydney

Airport

Finance,

3.90%,

3/22/23 (1)

150‌

153‌

153‌

Total

Corporate

Bonds

(Cost

$19,172)

18,622‌

FOREIGN

GOVERNMENT

OBLIGATIONS

&

MUNICIPALITIES

4.0%

Government

Sponsored

0.4%

MEGlobal

Canada

ULC,

5.00%,

5/18/25

200‌

209‌

209‌

Owned

No

Guarantee

3.6%

Abu

Dhabi

National

Energy,

4.375%,

6/22/26

200‌

215‌

Axiata,

4.357%,

3/24/26

200‌

214‌

Consorcio

Transmantaro,

4.375%,

5/7/23

200‌

204‌

Ecopetrol,

5.875%,

9/18/23

200‌

208‌

Export-Import

Bank

of

India,

3.875%,

3/12/24

200‌

205‌

Indian

Oil,

4.75%,

1/16/24

200‌

208‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

9

Par/Shares

$

Value

(Amounts

in

000s)

‡

Petroleos

Mexicanos,

4.875%,

1/18/24

200‌

206‌

QNB

Finance,

2.625%,

5/12/25

200‌

200‌

Saudi

Electricity

Global

Sukuk,

4.222%,

1/27/24

200‌

207‌

1,867‌

Total

Foreign

Government

Obligations

&

Municipalities

(Cost

$2,125)

2,076‌

MUNICIPAL

SECURITIES

1.0%

Illinois

0.2%

Chicago

Transit

Auth.

Sales

Tax

Receipts

Fund,

Series B,

1.838%,

12/1/23

100‌

100‌

100‌

Michigan

0.2%

Detroit,

Social

Bonds,

Series B,

GO,

2.189%,

4/1/24

125‌

123‌

123‌

New

York

0.2%

Metropolitan

Transportation

Auth.,

Series B-1,

BAN,

5.00%,

5/15/22

100‌

101‌

101‌

West

Virginia

0.4%

Tobacco

Settlement

Fin.

Auth.,

Class

1

Senior

Bonds,

Series A,

1.193%,

6/1/23

180‌

179‌

179‌

Total

Municipal

Securities

(Cost

$508)

503‌

NON-U.S.

GOVERNMENT

MORTGAGE-BACKED

SECURITIES

21.2%

Collateralized

Mortgage

Obligations

10.6%

Angel

Oak

Mortgage

Trust

Series 2020-6,

Class

A1,

CMO,

ARM

1.261%,

5/25/65 (1)

38‌

38‌

Angel

Oak

Mortgage

Trust

Series 2021-2,

Class

A3,

CMO,

ARM

1.447%,

4/25/66 (1)

147‌

143‌

Angel

Oak

Mortgage

Trust

Series 2021-3,

Class

A3,

CMO,

ARM

1.459%,

5/25/66 (1)

142‌

139‌

Angel

Oak

Mortgage

Trust

I

Series 2019-2,

Class

M1,

CMO,

ARM

4.065%,

3/25/49 (1)

100‌

100‌

Barclays

Mortgage

Loan

Trust

Series 2021-NQM1,

Class

A3,

CMO,

ARM

2.189%,

9/25/51 (1)

94‌

92‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

10

Par/Shares

$

Value

(Amounts

in

000s)

‡

Bayview

Mortgage

Fund

IVc

Trust

Series 2017-RT3,

Class

A,

ARM

3.50%,

1/28/58 (1)

48‌

48‌

Bellemeade

Re

Series 2022-1,

Class

M1B,

CMO,

ARM

SOFR30A

+

2.15%,

2.20%,

1/26/32 (1)

300‌

299‌

CAFL

Issuer

Series 2021-RTL1,

Class

A2,

CMO,

STEP

3.104%,

3/26/29 (1)

220‌

212‌

COLT

Mortgage

Loan

Trust

Series 2020-3,

Class

A1,

CMO,

ARM

1.506%,

4/27/65 (1)

31‌

31‌

Connecticut

Avenue

Securities

Series 2021-R01,

Class

1M2,

CMO,

ARM

SOFR30A

+

1.55%,

1.599%,

10/25/41 (1)

200‌

196‌

Deephaven

Residential

Mortgage

Trust

Series 2021-1,

Class

A3,

CMO,

ARM

1.128%,

5/25/65 (1)

49‌

48‌

Deephaven

Residential

Mortgage

Trust

Series 2021-2,

Class

B1,

CMO,

ARM

3.174%,

4/25/66 (1)

100‌

96‌

Eagle

Series 2021-2,

Class

M1A,

CMO,

ARM

SOFR30A

+

1.55%,

1.599%,

4/25/34 (1)

150‌

149‌

Ellington

Financial

Mortgage

Trust

Series 2021-2,

Class

B1,

CMO,

ARM

3.202%,

6/25/66 (1)

205‌

196‌

Flagstar

Mortgage

Trust

Series 2019-1INV,

Class

A11,

CMO,

ARM

1M

USD

LIBOR

+

0.95%,

1.137%,

10/25/49 (1)

22‌

22‌

Flagstar

Mortgage

Trust

Series 2020-1INV,

Class

A11,

CMO,

ARM

1M

USD

LIBOR

+

0.85%,

1.037%,

3/25/50 (1)

37‌

36‌

Freddie

Mac

Whole

Loan

Securities

Trust

Series 2017-SC02,

Class

M1,

CMO,

ARM

3.843%,

5/25/47 (1)

325‌

325‌

FWD

Securitization

Trust

Series 2020-INV1,

Class

M1,

CMO,

ARM

2.85%,

1/25/50 (1)

250‌

246‌

GS

Mortgage-Backed

Securities

Trust

Series 2021-NQM1,

Class

A3,

CMO,

ARM

1.532%,

7/25/61 (1)

236‌

231‌

Hundred

Acre

Wood

Trust

Series 2021-INV1,

Class

A9,

CMO,

ARM

2.50%,

7/25/51 (1)

143‌

140‌

Hundred

Acre

Wood

Trust

Series 2021-INV2,

Class

A27,

CMO,

ARM

2.50%,

10/25/51 (1)

95‌

91‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

11

Par/Shares

$

Value

(Amounts

in

000s)

‡

JPMorgan

Mortgage

Trust

Series 2019-INV2,

Class

A3,

CMO,

ARM

3.50%,

2/25/50 (1)

119‌

119‌

MFRA

Trust

Series 2021-NQM2,

Class

A3,

CMO,

ARM

1.472%,

11/25/64 (1)

74‌

72‌

New

Residential

Mortgage

Loan

Trust

Series 2021-NQ1R,

Class

A3,

CMO,

ARM

1.198%,

7/25/55 (1)

81‌

79‌

OBX

Trust

Series 2019-INV1,

Class

A3,

CMO,

ARM

4.50%,

11/25/48 (1)

56‌

56‌

OBX

Trust

Series 2019-INV2,

Class

A25,

CMO,

ARM

4.00%,

5/27/49 (1)

66‌

67‌

OBX

Trust

Series 2021-NQM1,

Class

A3,

CMO,

ARM

1.329%,

2/25/66 (1)

92‌

90‌

OBX

Trust

Series 2021-NQM3,

Class

A2,

CMO,

ARM

1.26%,

7/25/61 (1)

88‌

85‌

Radnor

RE

Series 2021-2,

Class

M1A,

CMO,

ARM

SOFR30A

+

1.85%,

1.899%,

11/25/31 (1)

150‌

150‌

Starwood

Mortgage

Residential

Trust

Series 2020-INV1,

Class

A3,

CMO,

ARM

1.593%,

11/25/55 (1)

41‌

41‌

Starwood

Mortgage

Residential

Trust

Series 2020-INV1,

Class

M1,

CMO

2.501%,

11/25/55 (1)

100‌

99‌

Starwood

Mortgage

Residential

Trust

Series 2021-2,

Class

A3,

CMO,

ARM

1.431%,

5/25/65 (1)

136‌

134‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-DNA2,

Class

M2,

CMO,

ARM

1M

USD

LIBOR

+

1.85%,

2.037%,

2/25/50 (1)

126‌

126‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-DNA5,

Class

M2,

CMO,

ARM

SOFR30A

+

2.80%,

2.849%,

10/25/50 (1)

92‌

93‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-DNA6,

Class

M1,

CMO,

ARM

SOFR30A

+

0.90%,

0.949%,

12/25/50 (1)

33‌

33‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2020-HQA1,

Class

M2,

CMO,

ARM

1M

USD

LIBOR

+

1.90%,

2.087%,

1/25/50 (1)

44‌

44‌

Structured

Agency

Credit

Risk

Debt

Notes

Series 2021-DNA5,

Class

M2,

CMO,

ARM

SOFR30A

+

1.65%,

1.699%,

1/25/34 (1)

100‌

98‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

12

Par/Shares

$

Value

(Amounts

in

000s)

‡

Towd

Point

Mortgage

Trust

Series 2016-5,

Class

A1,

ARM

2.50%,

10/25/56 (1)

60‌

60‌

TRK

Trust

Series 2021-INV1,

Class

A3,

CMO,

ARM

1.562%,

7/25/56 (1)

85‌

82‌

UWM

Mortgage

Trust

Series 2021-INV2,

Class

A15,

CMO,

ARM

2.50%,

9/25/51 (1)

212‌

202‌

Verus

Securitization

Trust

Series 2019-4,

Class

A1,

CMO,

STEP

2.642%,

11/25/59 (1)

17‌

17‌

Verus

Securitization

Trust

Series 2019-INV3,

Class

A3,

CMO,

ARM

3.10%,

11/25/59 (1)

200‌

200‌

Verus

Securitization

Trust

Series 2020-1,

Class

A3,

CMO,

STEP

2.724%,

1/25/60 (1)

134‌

136‌

Verus

Securitization

Trust

Series 2021-2,

Class

A3,

CMO,

ARM

1.545%,

2/25/66 (1)

226‌

221‌

Verus

Securitization

Trust

Series 2021-R1,

Class

M1,

CMO

2.338%,

10/25/63 (1)

100‌

99‌

Verus

Securitization

Trust

Series 2021-R3,

Class

M1,

CMO,

ARM

2.411%,

4/25/64 (1)

120‌

118‌

ZH

Trust

Series 2021-1,

Class

A,

CMO

2.253%,

2/18/27 (1)

100‌

99‌

5,498‌

Commercial

Mortgage-Backed

Securities

10.6%

Alen

Mortgage

Trust

Series 2021-ACEN,

Class

C,

ARM

1M

USD

LIBOR

+

2.25%,

2.441%,

4/15/34 (1)

100‌

98‌

Arbor

Realty

Commercial

Real

Estate

Notes

Series 2021-FL3,

Class

A,

ARM

1M

USD

LIBOR

+

1.07%,

1.261%,

8/15/34 (1)

100‌

99‌

Arbor

Realty

Commercial

Real

Estate

Notes

Series 2021-FL4,

Class

A,

ARM

1M

USD

LIBOR

+

1.35%,

1.541%,

11/15/36 (1)

115‌

115‌

BAMLL

Commercial

Mortgage

Securities

Trust

Series 2021-JACX,

Class

E,

ARM

1M

USD

LIBOR

+

3.75%,

3.941%,

9/15/38 (1)

100‌

98‌

BANK

Series 2019-BN23,

Class

A1

1.975%,

12/15/52

50‌

50‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

13

Par/Shares

$

Value

(Amounts

in

000s)

‡

Barclays

Commercial

Mortgage

Trust

Series 2020-BID,

Class

A,

ARM

1M

USD

LIBOR

+

2.14%,

2.331%,

10/15/37 (1)

250‌

250‌

BSPRT

Issuer

Series 2022-FL8,

Class

A,

ARM

SOFR30A

+

1.50%,

1.55%,

2/15/37 (1)

200‌

200‌

BX

Commercial

Mortgage

Trust

Series 2019-IMC,

Class

A,

ARM

1M

USD

LIBOR

+

1.00%,

1.191%,

4/15/34 (1)

160‌

158‌

BX

Commercial

Mortgage

Trust

Series 2019-IMC,

Class

D,

ARM

1M

USD

LIBOR

+

1.90%,

2.091%,

4/15/34 (1)

202‌

198‌

BX

Trust

Series 2018-GW,

Class

D,

ARM

1M

USD

LIBOR

+

1.77%,

1.961%,

5/15/35 (1)

125‌

123‌

BX

Trust

Series 2021-ARIA,

Class

C,

ARM

1M

USD

LIBOR

+

1.646%,

1.837%,

10/15/36 (1)

160‌

156‌

CD

Mortgage

Trust

Series 2016-CD1,

Class

B,

ARM

3.077%,

8/10/49

100‌

98‌

Citigroup

Commercial

Mortgage

Trust

Series 2013-375P,

Class

B,

ARM

3.518%,

5/10/35 (1)

150‌

151‌

Citigroup

Commercial

Mortgage

Trust

Series 2015-P1,

Class

B,

ARM

4.316%,

9/15/48

250‌

256‌

Citigroup

Commercial

Mortgage

Trust

Series 2016-C1,

Class

AS

3.514%,

5/10/49

200‌

204‌

Cold

Storage

Trust

Series 2020-ICE5,

Class

C,

ARM

1M

USD

LIBOR

+

1.65%,

1.841%,

11/15/37 (1)

147‌

146‌

Commercial

Mortgage

Trust

Series 2013-300P,

Class

A1

4.353%,

8/10/30 (1)

146‌

149‌

Commercial

Mortgage

Trust

Series 2014-CR14,

Class

AM,

ARM

4.526%,

2/10/47

75‌

77‌

Commercial

Mortgage

Trust

Series 2014-UBS2,

Class

B

4.701%,

3/10/47

105‌

108‌

Commercial

Mortgage

Trust

Series 2015-DC1,

Class

AM

3.724%,

2/10/48

155‌

158‌

Credit

Suisse

Mortgage

Capital

Certificates

Series 2020-TMIC,

Class

A,

ARM

1M

USD

LIBOR

+

3.00%,

3.25%,

12/15/35 (1)

150‌

149‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

14

Par/Shares

$

Value

(Amounts

in

000s)

‡

Eleven

Madison

Mortgage

Trust

Series 2015-11MD,

Class

A,

ARM

3.555%,

9/10/35 (1)

170‌

174‌

Fontainebleau

Miami

Beach

Trust

Series 2019-FBLU,

Class

B

3.447%,

12/10/36 (1)

275‌

274‌

Great

Wolf

Trust

Series 2019-WOLF,

Class

E,

ARM

1M

USD

LIBOR

+

2.732%,

2.923%,

12/15/36 (1)

250‌

240‌

GS

Mortgage

Securities

Trust

Series 2021-ROSS,

Class

C,

ARM

1M

USD

LIBOR

+

2.00%,

2.192%,

5/15/26 (1)

105‌

103‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series 2018-WPT,

Class

BFL,

ARM

1M

USD

LIBOR

+

1.50%,

1.611%,

7/5/33 (1)

59‌

59‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series 2020-609M,

Class

B,

ARM

1M

USD

LIBOR

+

1.77%,

1.962%,

10/15/33 (1)

100‌

98‌

LSTAR

Commercial

Mortgage

Trust

Series 2015-3,

Class

B,

ARM

3.165%,

4/20/48 (1)

147‌

146‌

LUXE

Trust

Series 2021-TRIP,

Class

C,

ARM

1M

USD

LIBOR

+

1.75%,

1.941%,

10/15/38 (1)

250‌

246‌

MF1

Series 2021-FL7,

Class

A,

ARM

1M

USD

LIBOR

+

1.08%,

1.206%,

10/18/36 (1)

115‌

114‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series 2013-C7,

Class

AS

3.214%,

2/15/46

140‌

141‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series 2014-C17,

Class

A5

3.741%,

8/15/47

39‌

40‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series 2015-C24,

Class

AS,

ARM

4.036%,

5/15/48

95‌

98‌

Morgan

Stanley

Capital

I

Trust

Series 2019-NUGS,

Class

D,

ARM

1M

USD

LIBOR

+

1.80%,

3.30%,

12/15/36 (1)

125‌

123‌

One

Market

Plaza

Trust

Series 2017-1MKT,

Class

A

3.614%,

2/10/32 (1)

130‌

129‌

Shelter

Growth

CRE

Issuer

Series 2021-FL3,

Class

A,

ARM

1M

USD

LIBOR

+

1.08%,

1.271%,

9/15/36 (1)

95‌

95‌

SLIDE

Series 2018-FUN,

Class

D,

ARM

1M

USD

LIBOR

+

2.10%,

2.291%,

6/15/31 (1)

231‌

224‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

15

Par/Shares

$

Value

(Amounts

in

000s)

‡

Wells

Fargo

Commercial

Mortgage

Trust

Series 2019-JWDR,

Class

A,

ARM

2.501%,

9/15/31��(1)

150‌

146‌

5,491‌

Total

Non-U.S.

Government

Mortgage-Backed

Securities

(Cost

$11,234)

10,989‌

U.S.

GOVERNMENT

&

AGENCY

MORTGAGE-BACKED

SECURITIES

1.0%

U.S.

Government

Obligations

1.0%

Government

National

Mortgage

Assn.,

TBA,

3/20/52 (4)

500‌

516‌

Total

U.S.

Government

&

Agency

Mortgage-Backed

Securities

(Cost

$512)

516‌

U.S.

GOVERNMENT

AGENCY

OBLIGATIONS

(EXCLUDING

MORTGAGE-BACKED)

13.2%

U.S.

Treasury

Obligations

13.2%

U.S.

Treasury

Inflation-Indexed

Notes,

0.625%,

4/15/23

275‌

288‌

U.S.

Treasury

Notes,

0.125%,

3/31/23

1,100‌

1,088‌

U.S.

Treasury

Notes,

0.125%,

4/30/23

335‌

331‌

U.S.

Treasury

Notes,

0.125%,

5/31/23

1,425‌

1,406‌

U.S.

Treasury

Notes,

0.125%,

6/30/23

1,415‌

1,394‌

U.S.

Treasury

Notes,

0.125%,

7/31/23

750‌

738‌

U.S.

Treasury

Notes,

0.25%,

9/30/23

125‌

123‌

U.S.

Treasury

Notes,

0.50%,

11/30/23 (5)

170‌

167‌

U.S.

Treasury

Notes,

1.50%,

2/29/24

1,290‌

1,291‌

Total

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed)

(Cost

$6,894)

6,826‌

SHORT-TERM

INVESTMENTS

5.6%

Commercial

Paper

2.3%

Basic

Industry

0.5%

Syngenta

Wilmington,

0.85%,

3/18/22 (6)

300‌

300‌

300‌

Consumer

Cyclical

0.6%

Harley

Davidson,

0.45%,

3/11/22 (6)

300‌

300‌

300‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

16

Par/Shares

$

Value

(Amounts

in

000s)

‡

Energy

0.6%

Canadian

Natural

Resource,

0.80%,

3/21/22 (6)

300‌

300‌

300‌

Technology

0.6%

Arrow

Electronics,

0.62%,

3/23/22 (6)

300‌

300‌

300‌

1,200‌

Money

Market

Funds

3.3%

T.

Rowe

Price

Government

Reserve

Fund,

0.12% (7)(8)

1,713‌

1,713‌

1,713‌

Total

Short-Term

Investments

(Cost

$2,913)

2,913‌

Total

Investments

in

Securities

102.4%

(Cost

$54,054)

$

52,999‌

Other

Assets

Less

Liabilities

(2.4)%

(1,251‌)

Net

Assets

100.0%

$

51,748‌

‡

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

$25,771

and

represents

49.8%

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)

To-Be-Announced

purchase

commitment.

Total

value

of

such

securities

at

period-end

amounts

to

$516

and

represents

1.0%

of

net

assets.

(5)

At

February

28,

2022,

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

$1,200

and

represents

2.3%

of

net

assets.

(7)

Seven-day

yield

(8)

Affiliated

Companies

1M

USD

LIBOR

One

month

USD

LIBOR

(London

interbank

offered

rate)

3M

USD

LIBOR

Three

month

USD

LIBOR

(London

interbank

offered

rate)

T.

ROWE

PRICE

Short

Duration

Income

Fund

17

.

.

.

.

.

.

.

.

.

.

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

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.

TBA

To-Be-Announced

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

18

(Amounts

in

000s)

SWAPS

(0.1)%

Description

Notional

Amount

$

Value

Initial

$

Value

Unrealized

$

Gain/(Loss)

CENTRALLY

CLEARED

SWAPS

(0.1)%

Credit

Default

Swaps,

Protection

Bought

(0.1)%

Protection

Bought

(Relevant

Credit:

Markit

CDX.NA.HY-S37,

5

Year

Index),

Pay

5.00%

Quarterly,

Receive

upon

credit

default,

12/20/26

772

(52)

(59)

7

Total

Centrally

Cleared

Credit

Default

Swaps,

Protection

Bought

7

Total

Centrally

Cleared

Swaps

7

Net

payments

(receipts)

of

variation

margin

to

date

2

Variation

margin

receivable

(payable)

on

centrally

cleared

swaps

$

9

T.

ROWE

PRICE

Short

Duration

Income

Fund

19

FUTURES

CONTRACTS

($000s)

Expiration

Date

Notional

Amount

Value

and

Unrealized

Gain

(Loss)

Short,

11

U.S.

Treasury

Notes

five

year

contracts

6/22

(1,301)

$

(6‌)

Long,

46

U.S.

Treasury

Notes

two

year

contracts

6/22

9,900

16‌

Net

payments

(receipts)

of

variation

margin

to

date

5‌

Variation

margin

receivable

(payable)

on

open

futures

contracts

$

15‌

T.

ROWE

PRICE

Short

Duration

Income

Fund

20

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,

2022.

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,

0.12%

$

—‌#

$

—‌

$

—‌+

Supplementary

Investment

Schedule

Affiliate

Value

05/31/21

Purchase

Cost

Sales

Cost

Value

02/28/22

T.

Rowe

Price

Government

Reserve

Fund,

0.12%

$

2,885‌

¤

¤

$

1,713‌^

#

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

$1,713.

T.

ROWE

PRICE

Short

Duration

Income

Fund

Unaudited

Notes

to

Portfolio

of

Investments

21

APST.

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

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

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

T.

ROWE

PRICE

Short

Duration

Income

Fund

22

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.

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

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,

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;

T.

ROWE

PRICE

Short

Duration

Income

Fund

23

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,

2022

(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

a

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

($000s)

Level

1

Level

2

Level

3

Total

Value

Assets

Fixed

Income

Securities

1

$

—‌

$

50,086‌

$

—‌

$

50,086‌

Short-Term

Investments

1,713‌

1,200‌

—‌

2,913‌

Total

Securities

1,713‌

51,286‌

—‌

52,999‌

Swaps*

—‌

7‌

—‌

7‌

Futures

Contracts*

16‌

—‌

—‌

16‌

Total

$

1,729‌

$

51,293‌

$

—‌

$

53,022‌

Liabilities

Futures

Contracts*

$

6‌

$

—‌

$

—‌

$

6‌

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

24

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.

Economic

sanctions

have

since

been

imposed

on

Russia

and

certain

of

its

citizens,

including

the

exclusion

of

Russia

from

the

SWIFT

global

payments

network.

As

a

result,

Russia’s

central

bank

closed

the

country’s

stock

market

on

February

28,

2022,

and

Russian-related

stocks

and

debt

have

since

suffered

significant

declines

in

value.

The

duration

of

the

coronavirus

outbreak

and

the

Russian-Ukraine

conflict,

and

their

effects

on

the

financial

markets,

cannot

be

determined

with

certainty.

The fund’s

performance

could

be

negatively

impacted

if

the

value

of

a

portfolio

holding

were

harmed

by

these

and

such

other

events.

Management

is

actively

monitoring

these

events.

F1305-054Q3

02/22

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