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