T. ROWE PRICE CAPITAL APPRECIATION FUND
September 30, 2020 (Unaudited)
Portfolio of Investments‡ | Shares/Par | $ Value |
(Cost and value in $000s) | ||
COMMON STOCKS 68.7% | ||
COMMUNICATION SERVICES 4.3% | ||
Interactive Media & Services 4.3% | ||
Alphabet, Class A (1) | 40,828 | 59,837 |
Alphabet, Class C (1)(2) | 843,226 | 1,239,205 |
Facebook, Class A (1)(2) | 1,620,732 | 424,470 |
Total Communication Services | 1,723,512 | |
CONSUMER DISCRETIONARY 7.0% | ||
Hotels, Restaurants & Leisure 3.8% | ||
Hilton Worldwide Holdings (2) | 5,076,648 | 433,140 |
Marriott International, Class A | 4,908,187 | 454,400 |
Yum! Brands (2) | 6,843,599 | 624,820 |
1,512,360 | ||
Internet & Direct Marketing Retail 3.2% | ||
Amazon.com (1)(2) | 408,214 | 1,285,356 |
1,285,356 | ||
Total Consumer Discretionary | 2,797,716 | |
CONSUMER STAPLES 1.3% | ||
Beverages 1.3% | ||
Keurig Dr Pepper (2) | 18,646,177 | 514,635 |
Total Consumer Staples | 514,635 | |
FINANCIALS 6.8% | ||
Banks 2.6% | ||
PNC Financial Services Group | 9,553,227 | 1,049,995 |
1,049,995 | ||
Capital Markets 1.4% | ||
CME Group (2) | 1,853,672 | 310,138 |
Intercontinental Exchange (2) | 2,420,337 | 242,155 |
552,293 | ||
The accompanying notes are an integral part of this Portfolio of Investments. |
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
Insurance 2.8% | ||
Marsh & McLennan | 9,678,949 | 1,110,175 |
1,110,175 | ||
Total Financials | 2,712,463 | |
HEALTH CARE 13.7% | ||
Health Care Equipment & Supplies 6.3% | ||
Becton Dickinson & Company (2) | 3,788,081 | 881,411 |
Boston Scientific (1) | 13,988,943 | 534,517 |
Danaher | 3,874,741 | 834,348 |
Envista Holdings (1)(3) | 11,974,423 | 295,529 |
2,545,805 | ||
Health Care Providers & Services 4.5% | ||
Humana (2) | 2,439,240 | 1,009,577 |
UnitedHealth Group (2) | 2,627,790 | 819,266 |
1,828,843 | ||
Life Sciences Tools & Services 2.9% | ||
PerkinElmer (2) | 3,297,829 | 413,911 |
Thermo Fisher Scientific (2) | 1,663,271 | 734,367 |
1,148,278 | ||
Total Health Care | 5,522,926 | |
INDUSTRIALS & BUSINESS SERVICES 7.4% | ||
Commercial Services & Supplies 0.6% | ||
Waste Connections | 2,416,342 | 250,816 |
250,816 | ||
Industrial Conglomerates 4.4% | ||
General Electric (2) | 249,943,069 | 1,557,145 |
Roper Technologies (2) | 506,681 | 200,195 |
1,757,340 | ||
Machinery 2.4% | ||
Fortive | 5,930,538 | 451,967 |
Ingersoll Rand (1)(2) | 14,819,249 | 527,565 |
979,532 | ||
Total Industrials & Business Services | 2,987,688 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
INFORMATION TECHNOLOGY 16.1% | ||
Electronic Equipment, Instruments & Components 1.4% | ||
TE Connectivity | 5,863,713 | 573,119 |
573,119 | ||
IT Services 7.3% | ||
Fiserv (1) | 11,257,444 | 1,160,080 |
Global Payments (2) | 4,776,951 | 848,291 |
Visa, Class A (2) | 4,718,234 | 943,505 |
2,951,876 | ||
Semiconductors & Semiconductor Equipment 2.1% | ||
NXP Semiconductors (2) | 6,657,309 | 830,899 |
830,899 | ||
Software 5.3% | ||
Microsoft (2) | 10,081,676 | 2,120,479 |
2,120,479 | ||
Total Information Technology | 6,476,373 | |
UTILITIES 8.5% | ||
Electric Utilities 5.2% | ||
Alliant Energy | 2,560,568 | 132,253 |
American Electric Power (2) | 16,625,017 | 1,358,763 |
Exelon | 11,917,731 | 426,178 |
NextEra Energy (2) | 614,168 | 170,468 |
2,087,662 | ||
Gas Utilities 0.3% | ||
Atmos Energy | 1,383,294 | 132,229 |
132,229 | ||
Multi-Utilities 3.0% | ||
Ameren | 9,125,495 | 721,644 |
NiSource (3) | 21,782,253 | 479,210 |
1,200,854 | ||
Total Utilities | 3,420,745 | |
Total Miscellaneous Common Stocks 3.6% (4) | 1,437,984 | |
Total Common Stocks (Cost $19,989,028) | 27,594,042 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
PREFERRED STOCKS 1.2% | ||
FINANCIALS 0.0% | ||
Banking 0.0% | ||
U.S. Bancorp, Series K, 5.50% (5) | 115,537 | 3,119 |
3,119 | ||
Financial Services 0.0% | ||
Charles Schwab, Series D, 5.95% (5) | 95,800 | 2,464 |
2,464 | ||
Total Financials | 5,583 | |
UTILITIES 1.2% | ||
Electric Utilities 1.0% | ||
Alabama Power, Series A, 5.00% (5) | 474,946 | 13,298 |
CMS Energy, 5.875%, 10/15/78 (3) | 3,800,000 | 100,434 |
CMS Energy, 5.875%, 3/1/79 (3) | 5,050,000 | 135,896 |
DTE Energy, Series E, 5.25%, 12/1/77 (3) | 2,289,341 | 60,393 |
Duke Energy, 5.625%, 9/15/78 (3) | 2,064,336 | 56,893 |
SCE Trust III, Series H, VR, 5.75% (5)(6) | 59,939 | 1,335 |
SCE Trust IV, Series J, VR, 5.375% (3)(5)(6) | 2,450,468 | 54,719 |
Total Electric Utilities | 422,968 | |
Gas & Gas Transmission 0.2% | ||
NiSource, Series B, VR, 6.50% (3)(5)(6) | 2,550,000 | 70,355 |
Total Gas & Gas Transmission | 70,355 | |
Total Utilities | 493,323 | |
Total Preferred Stocks (Cost $473,759) | 498,906 | |
CONVERTIBLE PREFERRED STOCKS 2.2% | ||
FINANCIALS 0.1% | ||
Banks 0.1% | ||
Wells Fargo, Series L, 7.50% (5) | 26,924 | 36,160 |
Total Financials | 36,160 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
HEALTH CARE 1.0% | ||
Health Care Equipment & Supplies 0.4% | ||
Boston Scientific, Series A, 5.50%, 6/1/23 | 1,189,286 | 132,631 |
132,631 | ||
Life Sciences Tools & Services 0.6% | ||
Avantor, Series A, 6.25%, 5/15/22 | 3,485,954 | 252,930 |
252,930 | ||
Total Health Care | 385,561 | |
INDUSTRIALS & BUSINESS SERVICES 0.2% | ||
Machinery 0.2% | ||
Fortive, Series A, 5.00%, 7/1/21 | 83,691 | 78,404 |
Total Industrials & Business Services | 78,404 | |
INFORMATION TECHNOLOGY 0.5% | ||
Software 0.5% | ||
Aurora Innovation, Series B, Acquisition Date: 3/1/19, Cost | ||
$25,766 (1)(7)(8) | 2,788,430 | 25,766 |
Waymo, Series A-2, Acquisition Date: 5/8/20, Cost $183,922 | ||
(1)(7)(8) | 2,141,932 | 183,922 |
Total Information Technology | 209,688 | |
UTILITIES 0.4% | ||
Electric Utilities 0.4% | ||
American Electric Power, 6.125%, 3/15/22 | 1,162,195 | 56,430 |
NextEra Energy, 5.279%, 3/1/23 | 2,421,673 | 113,673 |
Total Utilities | 170,103 | |
Total Convertible Preferred Stocks (Cost $795,601) | 879,916 | |
CONVERTIBLE BONDS 0.1% | ||
Liberty Broadband, 2.75%, 9/30/50 (9) | 18,402,000 | 19,807 |
Total Convertible Bonds (Cost $18,402) | 19,807 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
CORPORATE BONDS 9.6% | ||
CORPORATE BONDS 9.6% | ||
AmWINS Group, 7.75%, 7/1/26 (9) | 2,985,000 | 3,194 |
Avantor, 6.00%, 10/1/24 (9) | 77,440,000 | 80,925 |
Avantor Funding, 4.625%, 7/15/28 (9) | 9,753,000 | 10,119 |
Bank of New York Mellon, FRN, 3M USD LIBOR + 3.42%, | ||
3.647% (5) | 43,465,000 | 42,596 |
CCO Holdings, 4.00%, 3/1/23 (9) | 43,430,000 | 43,756 |
CCO Holdings, 5.00%, 2/1/28 (9) | 197,338,000 | 207,452 |
CCO Holdings, 5.125%, 5/1/27 (9) | 133,065,000 | 139,718 |
Cedar Fair, 5.25%, 7/15/29 | 71,090,000 | 68,246 |
Cedar Fair, 5.375%, 6/1/24 | 90,542,000 | 88,731 |
Cedar Fair, 5.375%, 4/15/27 | 57,260,000 | 56,687 |
Continental Airlines PTT, Series 2012-1, Class A, 4.15%, | ||
4/11/24 | 9,619,007 | 9,352 |
Delta Air Lines, 4.50%, 10/20/25 (9) | 57,780,000 | 59,297 |
Delta Air Lines, 4.75%, 10/20/28 (9) | 37,425,000 | 38,875 |
Elanco Animal Health, 4.912%, 8/27/21 | 32,929,000 | 33,793 |
General Electric, Series D, VR, 5.00% (5)(6) | 281,325,000 | 223,653 |
Hilton Domestic Operating, 4.25%, 9/1/24 | 29,090,000 | 29,126 |
Hilton Worldwide Finance, 4.625%, 4/1/25 | 7,500,000 | 7,547 |
Hologic, 4.375%, 10/15/25 (9) | 30,520,000 | 31,207 |
HUB International, 7.00%, 5/1/26 (9) | 84,612,000 | 87,679 |
KFC Holding, 4.75%, 6/1/27 (9) | 145,549,000 | 151,917 |
KFC Holding, 5.00%, 6/1/24 (9) | 68,920,000 | 70,643 |
KFC Holding, 5.25%, 6/1/26 (9) | 104,488,000 | 108,537 |
Korn Ferry, 4.625%, 12/15/27 (9) | 11,955,000 | 12,134 |
Lennox International, 3.00%, 11/15/23 | 6,420,000 | 6,775 |
Marriott International, 3.125%, 6/15/26 | 11,184,000 | 11,124 |
Marriott International, FRN, 3M USD LIBOR + 0.65%, 0.898%, | ||
3/8/21 | 11,415,000 | 11,361 |
Mileage Plus Holdings, 6.50%, 6/20/27 (9) | 25,925,000 | 26,962 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
Mirant, EC, 0.00%, 7/15/49 (1)(7)(9) | 16,000,000 | — |
Netflix, 4.375%, 11/15/26 | 134,150,000 | 145,720 |
Netflix, 4.875%, 4/15/28 | 157,025,000 | 176,261 |
Netflix, 5.50%, 2/15/22 | 9,485,000 | 9,936 |
Netflix, 5.875%, 2/15/25 | 56,540,000 | 63,678 |
Netflix, 5.875%, 11/15/28 | 220,315,000 | 261,624 |
Netflix, 6.375%, 5/15/29 | 120,825,000 | 149,068 |
NiSource, VR, 5.65% (3)(5)(6) | 44,495,000 | 43,828 |
PNC Financial Services Group, Series S, VR, 5.00% (5)(6) | 40,660,000 | 42,845 |
Refinitiv U.S. Holdings, 6.25%, 5/15/26 (9) | 43,645,000 | 46,646 |
Refinitiv U.S. Holdings, 8.25%, 11/15/26 (9) | 57,030,000 | 62,519 |
Reynolds Group Issuer, 5.125%, 7/15/23 (9) | 31,300,000 | 31,535 |
SBA Communications, 3.875%, 2/15/27 (9) | 17,885,000 | 18,131 |
SBA Communications, 4.00%, 10/1/22 | 64,106,000 | 64,507 |
SBA Communications, 4.875%, 9/1/24 | 34,435,000 | 35,210 |
Sensata Technologies, 4.875%, 10/15/23 (9) | 20,175,000 | 21,108 |
Sensata Technologies, 5.00%, 10/1/25 (9) | 23,800,000 | 25,555 |
Sensata Technologies, 5.625%, 11/1/24 (9) | 6,670,000 | 7,195 |
Sensata Technologies UK Financing, 6.25%, 2/15/26 (9) | 9,113,000 | 9,489 |
Sirius XM Radio, 3.875%, 8/1/22 (9) | 5,422,000 | 5,476 |
Six Flags Entertainment, 4.875%, 7/31/24 (9) | 98,465,000 | 93,049 |
Six Flags Entertainment, 5.50%, 4/15/27 (9) | 85,194,000 | 80,508 |
Six Flags Theme Parks, 7.00%, 7/1/25 (9) | 41,887,000 | 44,505 |
Solera, 10.50%, 3/1/24 (9) | 230,522,000 | 240,319 |
State Street, FRN, 3M USD LIBOR + 3.597%, 3.847% (5) | 33,460,000 | 32,791 |
T-Mobile USA, 6.00%, 3/1/23 | 13,950,000 | 13,985 |
T-Mobile USA, 6.50%, 1/15/26 | 6,975,000 | 7,263 |
Teleflex, 4.625%, 11/15/27 | 21,957,000 | 23,000 |
Teleflex, 4.875%, 6/1/26 | 33,225,000 | 34,305 |
U.S. Airways PTT, Series 2010-1, Class A, 6.25%, 4/22/23 | 6,783,922 | 6,086 |
U.S. Airways PTT, Series 2012-2, Class A, 4.625%, 6/3/25 | 1,068,895 | 861 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
U.S. Airways PTT, Series 2012-2, Class B, 6.75%, 6/3/21 | 1,907,819 | 1,747 |
U.S. Airways PTT, Series 2013-1, Class A, 3.95%, 11/15/25 | 6,762,779 | 5,547 |
U.S. Airways PTT, Series 2013-1, Class B, 5.375%, 11/15/21 | 2,289,361 | 1,867 |
USI, 6.875%, 5/1/25 (9) | 32,946,000 | 33,481 |
Welbilt, 9.50%, 2/15/24 | 27,746,000 | 28,440 |
Xylem, 4.875%, 10/1/21 | 3,095,000 | 3,230 |
Yum! Brands, 3.75%, 11/1/21 | 98,140,000 | 99,367 |
Yum! Brands, 3.875%, 11/1/20 | 60,185,000 | 60,185 |
Yum! Brands, 3.875%, 11/1/23 | 42,025,000 | 43,706 |
Yum! Brands, 4.75%, 1/15/30 (9) | 11,060,000 | 11,945 |
Yum! Brands, 5.35%, 11/1/43 | 64,619,000 | 68,819 |
Yum! Brands, 6.875%, 11/15/37 | 27,015,000 | 32,283 |
Total Corporate Bonds (Cost $3,680,274) | 3,849,026 | |
BANK LOANS 10.6% (10) | ||
Alliant Holdings Intermediate, FRN | ||
3M USD LIBOR + 2.75%, 2.897%, 5/9/25 (11) | 38,355,948 | 37,201 |
Alliant Holdings Intermediate, FRN | ||
3M USD LIBOR + 3.25%, 3.401%, 5/9/25 (11) | 31,520,202 | 30,916 |
AmWINS Group, FRN | ||
3M USD LIBOR + 2.75%, 3.75%, 1/25/24 (11) | 19,874,149 | 19,671 |
Applied Systems, FRN | ||
3M USD LIBOR + 3.25%, 4.25%, 9/19/24 (11) | 17,185,719 | 17,062 |
Azalea TopCo, FRN | ||
1M USD LIBOR + 3.50%, 3.761%, 7/24/26 | 103,415,191 | 99,344 |
Camelot Finance, FRN | ||
1M USD LIBOR + 3.00%, 10/31/26 (11) | 62,725,000 | 62,385 |
Capri Acquisitions Bidco, FRN | ||
3M USD LIBOR + 3.00%, 3.261%, 11/1/24 | 63,125,000 | 63,027 |
CCC Information Services, FRN | ||
1M USD LIBOR + 3.00%, 4.00%, 4/29/24 (11) | 374,797,190 | 371,596 |
CPI Holdco, FRN | ||
1M USD LIBOR + 4.25%, 4.397%, 11/4/26 | 11,188,023 | 11,104 |
Delta 2, FRN | ||
3M USD LIBOR + 2.50%, 3.50%, 2/1/24 | 167,659,747 | 162,281 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
Dino Grandparent, FRN | ||
1M USD LIBOR + 2.25%, 2.438%, 2/20/23 (7) | 76,125,000 | 74,603 |
Filtration Group, FRN | ||
3M USD LIBOR + 3.00%, 3.147%, 3/31/25 | 14,591,086 | 14,283 |
Four Seasons Hotels, FRN | ||
3M USD LIBOR + 2.00%, 2.147%, 11/30/23 | 26,719,438 | 25,951 |
Gardner Denver, FRN | ||
1M USD LIBOR + 2.75%, 2.897%, 3/1/27 | 10,748,063 | 10,585 |
HB Fuller, FRN | ||
3M USD LIBOR + 2.00%, 2.156%, 10/20/24 | 13,272,877 | 13,079 |
HUB International, FRN | ||
1M USD LIBOR + 3.00%, 3.264%, 4/25/25 | 575,032,801 | 555,016 |
HUB International, FRN | ||
1M USD LIBOR + 4.00%, 5.00%, 4/25/25 (11) | 249,497,493 | 248,327 |
Life Time, FRN | ||
3M USD LIBOR + 2.75%, 3.75%, 6/10/22 | 78,726,416 | 71,313 |
Loire Finco Luxembourg, FRN | ||
1M USD LIBOR + 3.50%, 3.647%, 1/24/27 | 107,096,588 | 103,884 |
Mileage Plus Holdings, FRN | ||
1M USD LIBOR + 5.25%, 6.25%, 6/21/27 (11) | 142,067,295 | 144,278 |
PetVet Care Centers, FRN | ||
3M USD LIBOR + 3.25%, 2/14/25 (11) | 5,988,482 | 5,854 |
PetVet Care Centers, FRN | ||
3M USD LIBOR + 2.75%, 2.897%, 2/14/25 | 4,915,380 | 4,748 |
Petvet Care Centers, FRN | ||
1M USD LIBOR + 4.25%, 5.25%, 2/14/25 | 14,468,463 | 14,432 |
Prestige Brands, FRN | ||
3M USD LIBOR + 2.00%, 2.147%, 1/26/24 | 1,371,764 | 1,359 |
Refinitiv U.S. Holdings, FRN | ||
1M USD LIBOR + 3.25%, 3.397%, 10/1/25 | 942,732,107 | 932,466 |
Ryan Specialty Group, FRN | ||
1M USD LIBOR + 3.25%, 4.00%, 9/1/27 | 22,925,000 | 22,682 |
SkyMiles IP, FRN | ||
1M USD LIBOR + 3.75%, 9/16/27 (11) | 79,025,000 | 79,547 |
Sunshine Luxembourg VII, FRN | ||
1M USD LIBOR + 4.25%, 4.47%, 10/1/26 | 121,045,300 | 120,232 |
Ultimate Software Group, FRN | ||
3M USD LIBOR + 3.75%, 3.897%, 5/4/26 | 13,924,350 | 13,789 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND | ||
Shares/Par | $ Value | |
(Cost and value in $000s) | ||
Ultimate Software Group, FRN | ||
1M USD LIBOR + 4.00%, 4.75%, 5/4/26 | 509,060,000 | 507,217 |
Ultimate Software Group, FRN | ||
1M USD LIBOR + 6.75%, 7.50%, 5/3/27 | 15,825,000 | 16,089 |
USI, FRN | ||
1M USD LIBOR + 4.00%, 12/2/26 (11) | 18,947,272 | 18,726 |
USI, FRN | ||
3M USD LIBOR + 3.00%, 3.22%, 5/16/24 | 165,986,764 | 160,315 |
USI, FRN | ||
1M USD LIBOR + 4.00%, 4.50%, 12/2/26 | 37,500,000 | 37,062 |
Versant Health Holdco, FRN | ||
3M USD LIBOR + 3.00%, 4.00%, 12/2/24 (11) | 8,019,385 | 7,989 |
Vertical U.S. Newco, FRN | ||
1M USD LIBOR + 4.25%, 4.57%, 7/30/27 (11) | 146,370,000 | 144,985 |
Welbilt, FRN | ||
3M USD LIBOR + 2.50%, 2.647%, 10/23/25 | 15,800,000 | 14,343 |
Total Bank Loans (Cost $4,249,654) | 4,237,741 | |
ASSET-BACKED SECURITIES 0.3% | ||
Domino's Pizza Master Issuer | ||
Series 2017-1A, Class A23 | ||
4.118%, 7/25/47 (9) | 39,556,438 | 42,666 |
Domino's Pizza Master Issuer | ||
Series 2018-1A, Class A2I | ||
4.116%, 7/25/48 (9) | 34,647,900 | 36,657 |
Domino's Pizza Master Issuer | ||
Series 2019-1A, Class A2 | ||
3.668%, 10/25/49 (9) | 18,435,688 | 19,596 |
Wendy's Funding | ||
Series 2018-1A, Class A2I | ||
3.573%, 3/15/48 (9) | 24,282,353 | 25,098 |
Total Asset-Backed Securities (Cost $116,030) | 124,017 | |
BOND MUTUAL FUNDS 0.2% | ||
T. Rowe Price Institutional Floating Rate Fund - Institutional | ||
Class, 3.64% (3)(12) | 8,926,281 | 84,621 |
Total Bond Mutual Funds (Cost $86,210) | 84,621 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
(Cost and value in $000s)
Shares/Par | $ Value | |||
SHORT-TERM INVESTMENTS 8.7% | ||||
MONEY MARKET FUNDS 8.7% | ||||
T. Rowe Price Government Reserve Fund, 0.09% (3)(13) | 3,504,216,219 | 3,504,216 | ||
Total Short-Term Investments (Cost $3,504,216) | 3,504,216 | |||
Total Investments in Securities 101.6% | ||||
(Cost $32,913,174) | $ | 40,792,292 | ||
Other Assets Less Liabilities (1.6)% | (637,644) | |||
Net Assets 100.0% | $ | 40,154,648 |
‡ | Shares/Par and Notional Amount are denominated in U.S. dollars unless | |
otherwise noted. | ||
(1) | Non-income producing | |
(2) | All or a portion of this security is pledged to cover or as collateral for written | |
call options at September 30, 2020. | ||
(3) | Affiliated Companies | |
(4) | The identity of certain securities has been concealed to protect the fund while | |
it completes a purchase or selling program for the securities. | ||
(5) | Perpetual security with no stated maturity date. | |
(6) | 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. | ||
(7) | Level 3 in fair value hierarchy. | |
(8) | Security cannot be offered for public resale without first being registered | |
under the Securities Act of 1933 and related rules ("restricted security"). | ||
Acquisition date represents the day on which an enforceable right to acquire | ||
such security is obtained and is presented along with related cost in the | ||
security description. The fund has registration rights for certain restricted | ||
securities. Any costs related to such registration are borne by the issuer. The | ||
aggregate value of restricted securities (excluding 144A holdings) at period- | ||
end amounts to $209,688 and represents 0.5% of net assets. | ||
(9) | 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 $1,947,700 and represents 4.9% of net assets. | ||
(10) | 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. | ||
(11) | All or a portion of this loan is unsettled as of September 30, 2020. The interest | |
rate for unsettled loans will be determined upon settlement after period end. | ||
(12) | SEC 30-day yield | |
(13) | Seven-day yield |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
1M USD LIBOR | One month USD LIBOR (London interbank offered rate) |
3M USD LIBOR | Three month USD LIBOR (London interbank offered rate) |
EC | Escrow CUSIP; represents a beneficial interest in a residual pool of assets; the |
amount and timing of future distributions, if any, is uncertain; when presented, | |
interest rate and maturity date are those of the original security. | |
FRN | Floating Rate Note |
OTC | Over-the-counter |
PTT | Pass-Through Trust |
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. |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
(Amounts in 000s, except for contracts) | |||||||
OPTIONS WRITTEN (0.9)% | |||||||
OTC Options Written (0.9)% | |||||||
Counterparty | Description | Contracts | Notional Amount | $ Value | |||
Alphabet, Class C, Call, 1/15/21 @ | |||||||
Citigroup | $1,500.00 | 694 | 101,990 | (6,749) | |||
Goldman | Alphabet, Class C, Call, 1/15/21 @ | ||||||
Sachs | $1,740.00 | 199 | 29,245 | (507) | |||
Goldman | Alphabet, Class C, Call, 1/15/21 @ | ||||||
Sachs | $1,760.00 | 199 | 29,245 | (448) | |||
Goldman | Alphabet, Class C, Call, 1/15/21 @ | ||||||
Sachs | $1,780.00 | 199 | 29,245 | (394) | |||
Goldman | Alphabet, Class C, Call, 1/15/21 @ | ||||||
Sachs | $1,800.00 | 199 | 29,245 | (346) | |||
Goldman | Alphabet, Class C, Call, 1/21/22 @ | ||||||
Sachs | $1,760.00 | 448 | 65,838 | (4,729) | |||
Goldman | Alphabet, Class C, Call, 1/21/22 @ | ||||||
Sachs | $1,780.00 | 448 | 65,838 | (4,502) | |||
Goldman | Alphabet, Class C, Call, 1/21/22 @ | ||||||
Sachs | $1,800.00 | 448 | 65,838 | (4,272) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Credit Suisse | $3,800.00 | 201 | 63,289 | (6,707) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Credit Suisse | $3,900.00 | 201 | 63,289 | (6,241) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Citigroup | $4,000.00 | 127 | 39,989 | (3,618) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Credit Suisse | $4,000.00 | 201 | 63,289 | (5,726) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Citigroup | $4,100.00 | 128 | 40,304 | (3,373) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Citigroup | $4,200.00 | 128 | 40,304 | (3,137) | |||
Amazon.com, Call, 1/21/22 @ | |||||||
Citigroup | $4,300.00 | 128 | 40,304 | (2,889) | |||
American Electric Power, Call, | |||||||
Citigroup | 1/15/21@ $105.00 | 10,116 | 82,678 | (76) | |||
American Electric Power, Call, | |||||||
Citigroup | 1/15/21@ $115.00 | 3,062 | 25,026 | (15) |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
(Amounts in 000s, except for contracts) | |||||||
Counterparty | Description | Contracts | Notional Amount | Value | |||
JPMorgan | American Electric Power, Call, | ||||||
Chase | 1/21/22 @ $90.00 | 6,085 | 49,733 | (2,830) | |||
JPMorgan | American Electric Power, Call, | ||||||
Chase | 1/21/22 @ $95.00 | 6,085 | 49,733 | (1,962) | |||
Susquehanna | |||||||
Financial | Bank of America, Call, 1/21/22 @ | ||||||
Group | $30.00 | 39,989 | 96,333 | (7,498) | |||
Goldman | Becton Dickinson & Company, Call, | ||||||
Sachs | 1/15/21 @ $260.00 | 635 | 14,775 | (324) | |||
Goldman | Becton Dickinson & Company, Call, | ||||||
Sachs | 1/15/21 @ $270.00 | 635 | 14,775 | (179) | |||
Goldman | Becton Dickinson & Company, Call, | ||||||
Sachs | 1/15/21 @ $280.00 | 950 | 22,105 | (207) | |||
Goldman | Becton Dickinson & Company, Call, | ||||||
Sachs | 1/15/21 @ $300.00 | 4,572 | 106,381 | (606) | |||
Credit Suisse | CME Group, Call, 1/15/21 @ $170.00 | 1,428 | 23,892 | (1,214) | |||
Credit Suisse | CME Group, Call, 1/15/21 @ $175.00 | 1,428 | 23,892 | (871) | |||
Credit Suisse | CME Group, Call, 1/15/21 @ $180.00 | 1,428 | 23,892 | (628) | |||
Credit Suisse | CME Group, Call, 1/15/21 @ $185.00 | 1,428 | 23,892 | (475) | |||
JPMorgan | Facebook, Class A, Call, 1/15/21 @ | ||||||
Chase | $195.00 | 1,270 | 33,261 | (8,957) | |||
JPMorgan | Facebook, Class A, Call, 1/15/21 @ | ||||||
Chase | $200.00 | 1,270 | 33,261 | (8,398) | |||
JPMorgan | Facebook, Class A, Call, 1/15/21 @ | ||||||
Chase | $265.00 | 1,760 | 46,094 | (3,951) | |||
JPMorgan | Facebook, Class A, Call, 1/15/21 @ | ||||||
Chase | $270.00 | 1,760 | 46,094 | (3,573) | |||
JPMorgan | Facebook, Class A, Call, 1/15/21 @ | ||||||
Chase | $275.00 | 1,760 | 46,094 | (3,203) | |||
JPMorgan | Facebook, Class A, Call, 1/21/22 @ | ||||||
Chase | $400.00 | 4,778 | 125,136 | (5,184) | |||
JPMorgan | General Electric, Call, 1/15/21 @ | ||||||
Chase | $8.00 | 100,658 | 62,710 | (2,164) | |||
JPMorgan | General Electric, Call, 1/15/21 @ | ||||||
Chase | $9.00 | 68,948 | 42,955 | (793) | |||
JPMorgan | General Electric, Call, 1/15/21 @ | ||||||
Chase | $15.00 | 178,219 | 111,030 | (356) |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
(Amounts in 000s, except for contracts) | |||||||
Counterparty | Description | Contracts | Notional Amount | Value | |||
Goldman | Global Payments, Call, 12/18/20 @ | ||||||
Sachs | $185.00 | 950 | 16,870 | (926) | |||
Goldman | Global Payments, Call, 12/18/20 @ | ||||||
Sachs | $195.00 | 950 | 16,870 | (656) | |||
Hilton Worldwide Holdings, Call, | |||||||
Credit Suisse | 1/15/21 @ $87.50 | 323 | 2,756 | (223) | |||
Hilton Worldwide Holdings, Call, | |||||||
Credit Suisse | 1/15/21 @ $90.00 | 323 | 2,756 | (195) | |||
Hilton Worldwide Holdings, Call, | |||||||
Citigroup | 1/15/21 @ $125.00 | 911 | 7,773 | (34) | |||
Hilton Worldwide Holdings, Call, | |||||||
Citigroup | 1/15/21 @ $130.00 | 911 | 7,773 | (30) | |||
Credit Suisse | Humana, Call, 1/15/21 @ $370.00 | 636 | 26,323 | (3,803) | |||
Credit Suisse | Humana, Call, 1/15/21 @ $380.00 | 636 | 26,323 | (3,256) | |||
Credit Suisse | Humana, Call, 1/15/21 @ $420.00 | 475 | 19,660 | (1,302) | |||
Credit Suisse | Humana, Call, 1/15/21 @ $430.00 | 475 | 19,660 | (1,100) | |||
JPMorgan | Ingersoll Rand, Call, 12/18/20 @ | ||||||
Chase | $35.00 | 9,505 | 33,838 | (2,638) | |||
JPMorgan | Intercontinental Exchange , Call, | ||||||
Chase | 1/15/21 @ $100.00 | 1,901 | 19,019 | (1,093) | |||
JPMorgan | Intercontinental Exchange , Call, | ||||||
Chase | 1/15/21 @ $105.00 | 1,901 | 19,019 | (665) | |||
Keurig Dr Pepper, Call, 10/16/20 @ | |||||||
Citigroup | $29.00 | 6,333 | 17,479 | (63) | |||
Keurig Dr Pepper, Call, 10/16/20 @ | |||||||
Citigroup | $30.00 | 6,342 | 17,504 | (16) | |||
Keurig Dr Pepper, Call, 10/16/20 @ | |||||||
Citigroup | $31.00 | 6,342 | 17,504 | (16) | |||
Citigroup | Microsoft, Call, 1/15/21 @ $165.00 | 3,715 | 78,138 | (17,767) | |||
Credit Suisse | Microsoft, Call, 1/15/21 @ $165.00 | 12,402 | 260,851 | (59,313) | |||
Citigroup | Microsoft, Call, 1/15/21 @ $170.00 | 3,715 | 78,138 | (16,151) | |||
JPMorgan | |||||||
Chase | Microsoft, Call, 1/15/21 @ $170.00 | 14,369 | 302,223 | (62,469) | |||
Citigroup | Microsoft, Call, 1/21/22 @ $280.00 | 6,220 | 130,825 | (6,795) | |||
NextEra Energy, Call, 1/15/21 @ | |||||||
Credit Suisse | $310.00 | 704 | 19,540 | (429) |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
(Amounts in 000s, except for contracts) | |||||||
Counterparty | Description | Contracts | Notional Amount | Value | |||
NextEra Energy, Call, 1/15/21 @ | |||||||
Credit Suisse | $320.00 | 704 | 19,540 | (317) | |||
JPMorgan | NXP Semiconductors, Call, 1/15/21 @ | ||||||
Chase | $115.00 | 792 | 9,885 | (1,297) | |||
JPMorgan | NXP Semiconductors, Call, 1/15/21 @ | ||||||
Chase | $125.00 | 792 | 9,885 | (883) | |||
JPMorgan | NXP Semiconductors, Call, 1/15/21 @ | ||||||
Chase | $135.00 | 2,199 | 27,446 | (1,534) | |||
NXP Semiconductors, Call, 1/15/21 @ | |||||||
Credit Suisse | $140.00 | 7,860 | 98,101 | (4,127) | |||
JPMorgan | NXP Semiconductors, Call, 1/15/21 @ | ||||||
Chase | $140.00 | 2,199 | 27,446 | (1,154) | |||
JPMorgan | NXP Semiconductors, Call, 1/15/21 @ | ||||||
Chase | $145.00 | 2,199 | 27,446 | (1,050) | |||
JPMorgan | PerkinElmer, Call, 12/18/20 @ | ||||||
Chase | $110.00 | 1,268 | 15,915 | (2,320) | |||
JPMorgan | PerkinElmer, Call, 12/18/20 @ | ||||||
Chase | $115.00 | 1,268 | 15,915 | (1,788) | |||
Goldman | Roper Technologies, Call, 11/20/20 @ | ||||||
Sachs | $370.00 | 634 | 25,050 | (2,368) | |||
Goldman | Roper Technologies, Call, 11/20/20 @ | ||||||
Sachs | $390.00 | 634 | 25,050 | (1,541) | |||
Goldman | Roper Technologies, Call, 11/20/20 @ | ||||||
Sachs | $420.00 | 634 | 25,050 | (663) | |||
Goldman | Roper Technologies, Call, 11/20/20 @ | ||||||
Sachs | $440.00 | 634 | 25,050 | (290) | |||
Royal Bank of | Thermo Fisher Scientific, Call, | ||||||
Canada | 1/15/21 @ $370.00 | 589 | 26,006 | (4,697) | |||
Royal Bank of | Thermo Fisher Scientific, Call, | ||||||
Canada | 1/15/21 @ $390.00 | 589 | 26,006 | (3,725) | |||
JPMorgan | UnitedHealth Group, Call, 1/15/21 @ | ||||||
Chase | $320.00 | 3,921 | 122,245 | (7,234) | |||
JPMorgan | UnitedHealth Group, Call, 1/15/21 @ | ||||||
Chase | $330.00 | 634 | 19,766 | (911) | |||
Goldman | |||||||
Sachs | Visa, Class A, Call, 1/15/21 @ $185.00 | 635 | 12,698 | (1,405) | |||
Goldman | |||||||
Sachs | Visa, Class A, Call, 1/15/21 @ $195.00 | 635 | 12,698 | (994) |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
(Amounts in 000s, except for contracts) | |||||
Counterparty | Description | Contracts | Notional Amount | Value | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/15/21 @ $200.00 | 1,267 | 25,336 | (1,625) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/15/21 @ $210.00 | 4,465 | 89,287 | (3,650) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/15/21 @ $215.00 | 980 | 19,597 | (635) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/15/21 @ $220.00 | 1,614 | 32,275 | (807) | |
Credit Suisse | Visa, Class A, Call, 1/15/21 @ $230.00 | 4,093 | 81,848 | (1,207) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/15/21 @ $230.00 | 1,410 | 28,196 | (416) | |
Credit Suisse | Visa, Class A, Call, 1/15/21 @ $235.00 | 4,093 | 81,848 | (878) | |
Credit Suisse | Visa, Class A, Call, 1/15/21 @ $240.00 | 4,093 | 81,848 | (677) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/15/21 @ $240.00 | 1,410 | 28,196 | (233) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/21/22 @ $225.00 | 2,597 | 51,932 | (4,129) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/21/22 @ $230.00 | 2,597 | 51,932 | (3,681) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/21/22 @ $250.00 | 1,267 | 25,336 | (1,055) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/21/22 @ $260.00 | 1,267 | 25,336 | (912) | |
Goldman | |||||
Sachs | Visa, Class A, Call, 1/21/22 @ $270.00 | 1,267 | 25,336 | (710) | |
Bank of | |||||
America | Yum! Brands, Call, 1/15/21 @ $95.00 | 1,900 | 17,347 | (741) | |
Bank of | |||||
America | Yum! Brands, Call, 1/15/21 @ $100.00 | 1,900 | 17,347 | (437) | |
Citigroup | Yum! Brands, Call, 1/15/21 @ $100.00 | 3,169 | 28,933 | (729) | |
Citigroup | Yum! Brands, Call, 1/15/21 @ $105.00 | 3,169 | 28,933 | (388) | |
Total OTC Options Written (Premiums $(247,188)) | $ | (347,250) | |||
Total Options Written (Premiums $(247,188)) | $ | (347,250) |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
Affiliated Companies
($000s)
The fund may invest in certain securities that are considered affiliated companies. As defined
by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the
outstanding voting securities, or a company that is under common ownership or control. The
following securities were considered affiliated companies for all or some portion of the nine
months ended September 30, 2020. 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.
Change in Net | ||||||||
Net Realized Gain | Unrealized | Investment | ||||||
Affiliate | (Loss) | Gain/Loss | Income | |||||
Alabama Power, Series A | $ | 544 | $ | (198) | $ | 636 | ||
CMS Energy, 3/1/79, Preferred | ||||||||
Stock | — | (2,020) | 5,563 | |||||
CMS Energy, 10/15/78, | ||||||||
Preferred Stock | — | (1,292) | 4,186 | |||||
DTE Energy, Preferred Stock | 366 | (527) | 2,480 | |||||
Duke Energy, Preferred Stock | 1,160 | 119 | 2,503 | |||||
Envista Holdings | — | (12,375) | — | |||||
NiSource, Common Stock | — | (106,072) | 11,991 | |||||
NiSource, 5.65%, Corporate | ||||||||
Bond | — | (1,779) | 1,896 | |||||
NiSource, Preferred Stock | — | (739) | 3,108 | |||||
PerkinElmer | 304,726 | (197,998) | 1,909 | |||||
SCE Trust IV, Series J | (3) | (5,334) | 2,470 | |||||
U.S. Bancorp, 5.30%, Corporate | ||||||||
Bond | 460 | (2,166) | 451 | |||||
U.S. Bancorp, Series F, | ||||||||
Preferred Stock | 709 | (1,220) | 292 | |||||
U.S. Bancorp, Series K, | ||||||||
Preferred Stock | 2,048 | (2,673) | 734 | |||||
T. Rowe Price Institutional | ||||||||
Floating Rate Fund - Institutional | ||||||||
Class | — | (3,506) | 2,715 | |||||
T. Rowe Price Government | ||||||||
Reserve Fund | — | — | 23,580 | |||||
Affiliates not held at period end | 4,520 | (9,300) | 1,297 | |||||
Totals | $ | 314,530# | $ | (347,080) | $ | 65,811+ |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
Affiliated Companies (continued) | |||||||
($000s) | |||||||
Supplementary Investment Schedule | |||||||
Value | Purchase | Sales | Value | ||||
Affiliate | 12/31/19 | Cost | Cost | 9/30/20 | |||
Alabama Power, Series A | $ | 21,122 | — | 7,626 $ | * | ||
CMS Energy, 10/15/78, | |||||||
Preferred Stock | 101,726 | — | — | 100,434 | |||
CMS Energy, 3/1/79, | |||||||
Preferred Stock | 137,916 | — | — | 135,896 | |||
DTE Energy, 3.70%, | |||||||
Corporate Bond | 16,547 | — | 15,877 | — | |||
DTE Energy, Preferred Stock | 67,686 | — | 6,766 | 60,393 | |||
Duke Energy, Preferred Stock | 68,166 | — | 11,392 | 56,893 | |||
Envista Holdings | 236,013 | 71,891 | — | 295,529 | |||
NiSource, Common Stock | 441,261 | 144,021 | — | 479,210 | |||
NiSource, 3.49%, Corporate | |||||||
Bond | 74,763 | — | 70,623 | — | |||
NiSource, 4.375%, Corporate | |||||||
Bond | 43,331 | — | 38,841 | — | |||
NiSource, 5.65%, Corporate | |||||||
Bond | 45,607 | — | — | 43,828 | |||
NiSource, Preferred Stock | 71,094 | — | — | 70,355 | |||
PerkinElmer | 1,202,183 | 92,005 | 682,279 | * | |||
SCE Trust IV, Series J | 60,456 | — | 403 | 54,719 | |||
U.S. Bancorp, 5.30%, | |||||||
Corporate Bond | 24,671 | — | 22,505 | — | |||
U.S. Bancorp, Series F, | |||||||
Preferred Stock | 12,865 | — | 11,645 | — | |||
U.S. Bancorp, Series K, | |||||||
Preferred Stock | 32,904 | — | 27,112 | * | |||
T. Rowe Price Institutional | |||||||
Floating Rate Fund - | |||||||
Institutional Class | 85,422 | 2,705 | — | 84,621 | |||
T. Rowe Price Government | |||||||
Reserve Fund | 4,758,476 | ¤ | ¤ | 3,504,216 | |||
Total | $ | 4,886,094^ |
# | Capital gain distributions from mutual funds represented $0 of the net realized gain (loss). |
+ | Investment income comprised $62,167 of dividend income and $3,644 of interest income. |
¤ | Purchase and sale information not shown for cash management funds. |
^ | The cost basis of investments in affiliated companies was $4,865,953. |
* | On the date indicated, issuer was held but not considered an affiliated company. |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE CAPITAL APPRECIATION FUND
Unaudited
NOTES TO PORTFOLIO OF
INVESTMENTS
T. Rowe Price Capital Appreciation Fund, Inc. (the fund) is registered under the Investment Company Act of 1940 (the
1940 Act) as an open-end management investment company and follows accounting and reporting guidance of the
Financial Accounting Standards Board Accounting Standards Codification Topic 946. The accompanying Portfolio of
Investments was prepared in accordance with accounting principles generally accepted in the United States of America
(GAAP). For additional information on the fund’s significant accounting policies and investment related disclosures,
please refer to the fund’s most recent semiannual or annual shareholder report and its prospectus.
VALUATION
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.
Fair Value
The fund’s financial instruments 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 procedures to value securities; determines pricing
techniques, sources, and persons eligible to effect fair value pricing actions; oversees the selection, services, and
performance of pricing vendors; oversees valuation-related business continuity practices; and provides guidance on
internal controls and valuation-related matters. The Valuation Committee reports to the Board and has representation
from legal, portfolio management and trading, operations, risk management, and the fund’s treasurer.
Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP
establishes the following fair value hierarchy that categorizes the inputs used to measure fair value:
Level 1 - quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at
the reporting date
Level 2 - inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not
limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or
similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and
credit spreads)
Level 3 - unobservable inputs
Observable inputs are developed using market data, such as publicly available information about actual events or
transactions, and reflect the assumptions that market participants would use to price the financial instrument.
Unobservable inputs are those for which market data are not available and are developed using the best information
available about the assumptions that market participants would use to price the financial instrument. GAAP requires
valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs.
When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value
hierarchy based on the lowest-level input that is significant to the fair value of the financial instrument. Input levels are
not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the
degree of judgment used in determining those values.
Valuation Techniques
Equity securities listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued
at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made. OTC
Bulletin Board securities are valued at the mean of the closing bid and asked prices. A security that is listed or traded on
T. ROWE PRICE CAPITAL APPRECIATION FUND
more than one exchange is valued at the quotation on the exchange determined to be the primary market for such
security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices.
Actively traded equity securities listed on a domestic exchange generally are categorized in Level 1 of the fair value
hierarchy. OTC Bulletin Board securities, certain preferred securities, and equity securities traded in inactive markets
generally are categorized in Level 2 of the fair value hierarchy.
Debt securities generally are traded in the 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. Generally, debt securities are categorized in Level 2 of the fair value
hierarchy; however, to the extent the valuations include significant unobservable inputs, the securities would be
categorized in Level 3.
Investments in mutual funds are valued at the mutual fund’s closing NAV per share on the day of valuation and are
categorized in Level 1 of the fair value hierarchy. Listed options, and OTC options with a listed equivalent, are valued at
the mean of the closing bid and asked prices and generally are categorized in Level 2 of the fair value hierarchy.
Thinly traded financial instruments and those for which the above valuation procedures are inappropriate or are
deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee. 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.
Subject to oversight by the Board, the Valuation Committee regularly makes good faith judgments to establish and
adjust the fair valuations of certain securities as events occur and circumstances warrant. For instance, in determining
the fair value of an equity investment with limited market activity, such as a private placement or a thinly traded public
company stock, the Valuation Committee considers a variety of factors, which may include, but are not limited to, the
issuer’s business prospects, its financial standing and performance, recent investment transactions in the issuer, new
rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market
valuations of peer companies, strategic events affecting the company, market liquidity for the issuer, and general
economic conditions and events. In consultation with the investment and pricing teams, the Valuation Committee will
determine an appropriate valuation technique based on available information, which may include both observable and
unobservable inputs. 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; 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
issue. 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. Depending on the relative significance of unobservable inputs, including the
valuation technique(s) used, fair valued securities may be categorized in Level 2 or 3 of the fair value hierarchy.
T. ROWE PRICE CAPITAL APPRECIATION FUND
Valuation Inputs
The following table summarizes the fund’s financial instruments, based on the inputs used to determine their fair values
on September 30, 2020 (for further detail by category, please refer to the accompanying Portfolio of Investments):
($000s) | Level 1 | Level 2 | Level 3 | Total Value | ||||
Assets | ||||||||
Common Stocks | $ | 27,594,042 $ | — $ | — $ | 27,594,042 | |||
Preferred Stocks | 498,906 | — | — | 498,906 | ||||
Convertible Preferred Stocks | — | 670,228 | 209,688 | 879,916 | ||||
Fixed Income Securities1 | — | 3,992,850 | — | 3,992,850 | ||||
Bank Loans | — | 4,163,138 | 74,603 | 4,237,741 | ||||
Bond Mutual Funds | 84,621 | — | — | 84,621 | ||||
Short-Term Investments | 3,504,216 | — | — | 3,504,216 | ||||
Total | $ | 31,681,785 $ | 8,826,216 $ | 284,291 $ | 40,792,292 | |||
Liabilities | ||||||||
Options Written | $ | — $ | 347,250 $ | — $ | — | |||
1 Includes Convertible Bonds, Corporate Bonds, Asset-Backed Securities. |