T. ROWE PRICE NEW HORIZONS FUND
September 30, 2019 (Unaudited)
| Portfolio of Investments‡ | Shares/Par | $ Value |
| (Cost and value in $000s) | ||
| COMMON STOCKS 94.4% | ||
| COMMUNICATION SERVICES 4.5% | ||
| Diversified Telecommunication Services 2.0% | ||
| GCI Liberty, Class A (1)(2) | 7,123,562 | 442,159 |
| Sarana Menara Nusantara (IDR) | 1,642,703,200 | 75,808 |
| 517,967 | ||
| Entertainment 0.1% | ||
| Houzz, Acquisition Date: 6/3/14, Cost $6,575 (1)(3)(4) | 877,600 | 5,494 |
| Offerup, Acquisition Date: 3/6/15, Cost $5,042 (1)(3)(4) | 1,012,630 | 3,656 |
| Rosetta Stone (1)(2) | 1,551,105 | 26,989 |
| 36,139 | ||
| Interactive Media & Services 0.6% | ||
| IAC/InterActiveCorp (1) | 722,173 | 157,412 |
| 157,412 | ||
| Media 1.8% | ||
| Cable One (2) | 365,281 | 458,318 |
| 458,318 | ||
| Total Communication Services | 1,169,836 | |
| CONSUMER DISCRETIONARY 11.7% | ||
| Distributors 0.3% | ||
| Pool | 450,922 | 90,951 |
| 90,951 | ||
| Diversified Consumer Services 4.1% | ||
| Bright Horizons Family Solutions (1)(2) | 4,711,078 | 718,439 |
| Nord Anglia Education (1) | 2,557,807 | 12,278 |
| ServiceMaster Global Holdings (1) | 6,055,263 | 338,489 |
| 1,069,206 | ||
| Hotels, Restaurants & Leisure 2.4% | ||
| Dunkin' Brands Group | 1,746,925 | 138,636 |
| Vail Resorts (2) | 2,151,831 | 489,671 |
| 628,307 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Internet & Direct Marketing Retail 1.6% | ||
| A Place for Rover, Acquisition Date: 5/25/18, | ||
| Cost $2,132 (1)(3)(4) | 314,592 | 2,186 |
| Farfetch, Class A (1) | 4,395,722 | 37,979 |
| MercadoLibre (1) | 707,001 | 389,720 |
| 429,885 | ||
| Multiline Retail 1.1% | ||
| Ollie's Bargain Outlet Holdings (1)(2) | 4,977,900 | 291,904 |
| 291,904 | ||
| Specialty Retail 2.1% | ||
| Burlington Stores (1) | 2,717,557 | 543,022 |
| Reed Krakoff International, Acquisition Date: 8/30/13 - | ||
| 10/14/14, Cost $11,106 (1)(2)(3)(4)(5) | 111,063 | — |
| Vroom, Acquisition Date: 10/11/16, Cost $2,286 (1)(2)(3)(4) | 176,119 | 3,162 |
| 546,184 | ||
| Textiles, Apparel & Luxury Goods 0.1% | ||
| Allbirds, Acquisition Date: 10/10/18 - 12/21/18, | ||
| Cost $15,645 (1)(3)(4) | 285,294 | 15,644 |
| 15,644 | ||
| Total Consumer Discretionary | 3,072,081 | |
| CONSUMER STAPLES 1.4% | ||
| Beverages 0.8% | ||
| Boston Beer, Class A (1)(2) | 549,948 | 200,225 |
| 200,225 | ||
| Food & Staples Retailing 0.1% | ||
| Grocery Outlet Holding (1) | 737,144 | 25,564 |
| 25,564 | ||
| Food Products 0.5% | ||
| Nomad Foods (1) | 5,328,124 | 109,227 |
| Simply Good Foods (1) | 641,044 | 18,584 |
| 127,811 | ||
| Total Consumer Staples | 353,600 | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| ENERGY 0.2% | ||
| Oil, Gas & Consumable Fuels 0.2% | ||
| Venture Global LNG, Series B, Acquisition Date: 3/8/18, Cost | ||
| $2,981 (1)(3)(4) | 987 | 5,133 |
| Venture Global LNG, Series C, Acquisition Date: 5/25/17 - | ||
| 3/8/18, Cost $25,850 (1)(3)(4) | 7,166 | 37,263 |
| Total Energy | 42,396 | |
| FINANCIALS 5.1% | ||
| Banks 0.6% | ||
| Signature Bank | 1,293,660 | 154,230 |
| 154,230 | ||
| Capital Markets 4.1% | ||
| Cboe Global Markets | 2,437,716 | 280,118 |
| MarketAxess Holdings | 677,174 | 221,775 |
| MSCI | 2,670,706 | 581,546 |
| 1,083,439 | ||
| Insurance 0.4% | ||
| Goosehead Insurance, Class A (2) | 920,312 | 45,417 |
| Palomar Holdings (1)(2) | 1,269,762 | 50,054 |
| 95,471 | ||
| Total Financials | 1,333,140 | |
| HEALTH CARE 19.9% | ||
| Biotechnology 8.1% | ||
| 10X Genomics, Class A (1) | 196,676 | 9,912 |
| Abcam (GBP) (2) | 15,207,911 | 214,308 |
| ACADIA Pharmaceuticals (1) | 3,859,933 | 138,919 |
| Acceleron Pharma (1) | 533,228 | 21,068 |
| Acerta Pharma, Class B, Acquisition Date: 5/12/15, | ||
| Cost $4,434 (1)(3)(4) | 175,251,555 | 15,773 |
| Agios Pharmaceuticals (1) | 606,431 | 19,648 |
| Aimmune Therapeutics (1) | 1,259,037 | 26,364 |
| Allakos (1) | 290,826 | 22,868 |
| Allogene Therapeutics (1) | 979,093 | 26,685 |
| Alnylam Pharmaceuticals (1) | 930,600 | 74,839 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Amarin, ADR (1) | 1,229,389 | 18,638 |
| AnaptysBio (1) | 188,066 | 6,580 |
| Apellis Pharmaceuticals (1) | 305,332 | 7,355 |
| Argenx, ADR (1) | 830,981 | 94,699 |
| Ascendis Pharma, ADR (1) | 1,624,927 | 156,513 |
| Audentes Therapeutics (1) | 61,053 | 1,715 |
| Autolus Therapeutics, ADR (1) | 528,505 | 6,564 |
| Avrobio (1) | 380,996 | 5,380 |
| BeiGene, ADR (1) | 210,469 | 25,774 |
| Bluebird Bio (1) | 360,151 | 33,069 |
| Blueprint Medicines (1) | 892,448 | 65,568 |
| Corvus Pharmaceuticals (1) | 368,971 | 1,111 |
| Cyclerion Therapeutics (1) | 4,330 | 53 |
| CytomX Therapeutics (1) | 257,766 | 1,902 |
| Deciphera Pharmaceuticals (1) | 222,400 | 7,548 |
| Dicerna Pharmaceuticals (1) | 109,289 | 1,569 |
| Enanta Pharmaceuticals (1) | 560,459 | 33,672 |
| Exelixis (1) | 1,935,835 | 34,235 |
| Fate Therapeutics (1) | 297,300 | 4,617 |
| FibroGen (1) | 699,016 | 25,850 |
| Forty Seven (1) | 209,304 | 1,344 |
| G1 Therapeutics (1) | 677,189 | 15,426 |
| Global Blood Therapeutics (1) | 931,713 | 45,207 |
| Guardant Health (1) | 593,171 | 37,862 |
| Homology Medicines (1) | 810,061 | 14,662 |
| Immunomedics (1) | 1,025,064 | 13,592 |
| Incyte (1) | 47,427 | 3,521 |
| Insmed (1) | 1,044,126 | 18,418 |
| Ionis Pharmaceuticals (1) | 623,733 | 37,368 |
| Iovance Biotherapeutics (1) | 2,582,186 | 46,996 |
| Krystal Biotech (1) | 374,949 | 13,020 |
| Milestone Pharmaceuticals (1) | 482,034 | 8,339 |
| Minerva Neurosciences (1) | 345,122 | 2,675 |
| Mirati Therapeutics (1) | 421,707 | 32,855 |
| Moderna (1) | 315,444 | 5,022 |
| Momenta Pharmaceuticals (1) | 475,062 | 6,157 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Neurocrine Biosciences (1) | 1,419,082 | 127,874 |
| Orchard Therapeutics, ADR (1) | 1,355,943 | 16,109 |
| Progenics Pharmaceuticals (1) | 2,226,800 | 11,256 |
| PTC Therapeutics (1) | 1,060,743 | 35,874 |
| Rhythm Pharmaceuticals (1) | 360,378 | 7,781 |
| Rocket Pharmaceuticals (1) | 609,480 | 7,100 |
| Sage Therapeutics (1) | 1,581,885 | 221,923 |
| Sarepta Therapeutics (1) | 833,875 | 62,807 |
| Scholar Rock Holding (1) | 508,427 | 4,550 |
| Seattle Genetics (1) | 1,200,851 | 102,553 |
| Tricida (1) | 1,285,945 | 39,697 |
| Ultragenyx Pharmaceutical (1) | 1,078,482 | 46,137 |
| Xencor (1) | 1,106,168 | 37,311 |
| Y-mAbs Therapeutics (1) | 145,207 | 3,784 |
| Zai Lab, ADR (1) | 169,513 | 5,484 |
| 2,135,500 | ||
| Health Care Equipment & Supplies 8.3% | ||
| DexCom (1) | 3,918,742 | 584,833 |
| Exact Sciences (1) | 4,407,313 | 398,289 |
| IDEXX Laboratories (1) | 1,709,087 | 464,752 |
| JAND, Class A, Acquisition Date: 4/23/15 - 3/9/18, Cost | ||
| $26,928 (1)(3)(4) | 1,875,578 | 31,772 |
| Nevro (1) | 1,300,103 | 111,770 |
| Novocure (1) | 552,936 | 41,349 |
| Quidel (1) | 1,032,668 | 63,354 |
| Shockwave Medical (1)(2) | 1,769,161 | 52,951 |
| West Pharmaceutical Services | 3,017,195 | 427,899 |
| 2,176,969 | ||
| Health Care Technology 0.6% | ||
| Veeva Systems, Class A (1) | 1,056,568 | 161,327 |
| 161,327 | ||
| Life Sciences Tools & Services 2.2% | ||
| Bruker | 4,548,381 | 199,810 |
| Eurofins Scientific (EUR) | 612,731 | 284,944 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Sartorius Stedim Biotech (EUR) | 577,970 | 80,843 |
| 565,597 | ||
| Pharmaceuticals 0.7% | ||
| Cara Therapeutics (1) | 1,107,724 | 20,249 |
| Catalent (1) | 1,087,517 | 51,831 |
| GW Pharmaceuticals, ADR (1) | 150,862 | 17,354 |
| MyoKardia (1) | 925,443 | 48,262 |
| Odonate Therapeutics (1) | 287,143 | 7,474 |
| Reata Pharmaceuticals, Class A (1) | 231,419 | 18,580 |
| Turning Point Therapeutics (1) | 358,772 | 13,490 |
| WaVe Life Sciences (1) | 136,535 | 2,803 |
| Zeneca, Acquisition Date: 7/18/13, Cost $— (1)(3)(4) | 288,910 | 178 |
| Zogenix (1) | 11,556 | 463 |
| 180,684 | ||
| Total Health Care | 5,220,077 | |
| INDUSTRIALS & BUSINESS SERVICES 23.3% | ||
| Aerospace & Defense 2.2% | ||
| Aerojet Rocketdyne Holdings (1) | 2,915,416 | 147,257 |
| BWX Technologies | 4,592,671 | 262,747 |
| Teledyne Technologies (1) | 527,197 | 169,752 |
| 579,756 | ||
| Airlines 1.0% | ||
| Alclear Holdings, Class B, Acquisition Date: 9/4/15 - 12/13/18, | ||
| Cost $85,192 (1)(2)(3)(4)(5) | 792,649 | 178,346 |
| Wheels Up Partners, Series B, Acquisition Date: 9/18/15, | ||
| Cost $22,697 (1)(2)(3)(4)(5) | 7,989,973 | 27,805 |
| Wheels Up Partners, Series C, Acquisition Date: 6/22/17, | ||
| Cost $18,460 (1)(2)(3)(4)(5) | 5,916,523 | 20,590 |
| Wheels Up Partners, Series D, Acquisition Date: 5/17/19, | ||
| Cost $30,921 (1)(2)(3)(4)(5) | 8,885,330 | 30,921 |
| 257,662 | ||
| Building Products 3.7% | ||
| Armstrong Worldwide Industries (2) | 5,292,249 | 511,761 |
| Lennox International | 1,869,742 | 454,291 |
| 966,052 | ||
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Commercial Services & Supplies 4.6% | ||
| Rentokil Initial (GBP) | 63,766,675 | 366,620 |
| Rollins | 9,327,740 | 317,796 |
| Waste Connections | 5,613,389 | 516,432 |
| 1,200,848 | ||
| Industrial Conglomerates 1.6% | ||
| Roper Technologies | 1,180,497 | 420,965 |
| 420,965 | ||
| Machinery 3.9% | ||
| Colfax (1) | 4,086,891 | 118,765 |
| Flowserve | 3,123,100 | 145,880 |
| Graco | 3,969,378 | 182,751 |
| John Bean Technologies | 726,583 | 72,244 |
| RBC Bearings (1) | 915,587 | 151,905 |
| Toro | 4,743,972 | 347,733 |
| 1,019,278 | ||
| Professional Services 4.7% | ||
| Clarivate Analytics (1) | 5,052,014 | 85,227 |
| CoStar Group (1) | 948,686 | 562,761 |
| TransUnion | 7,280,438 | 590,516 |
| 1,238,504 | ||
| Road & Rail 1.3% | ||
| Old Dominion Freight Line | 1,996,670 | 339,374 |
| 339,374 | ||
| Trading Companies & Distributors 0.3% | ||
| SiteOne Landscape Supply (1) | 1,095,875 | 81,117 |
| 81,117 | ||
| Total Industrials & Business Services | 6,103,556 | |
| INFORMATION TECHNOLOGY 26.7% | ||
| Electronic Equipment, Instruments & Components 0.4% | ||
| Badger Meter | 482,920 | 25,933 |
| FLIR Systems | 1,286,191 | 67,641 |
| 93,574 | ||
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| IT Services 12.5% | ||
| Black Knight (1) | 7,340,245 | 448,196 |
| Booz Allen Hamilton Holding (2) | 9,977,879 | 708,629 |
| Endava, ADR (1) | 791,603 | 29,962 |
| Gartner (1) | 2,738,941 | 391,641 |
| Okta (1) | 2,420,466 | 238,319 |
| ServiceTitan, Acquisition Date: 11/9/18, Cost $2,665 (1)(3)(4) | 101,356 | 2,665 |
| Shopify, Class A (1) | 1,513,678 | 471,753 |
| StoneCo, Class A (1)(2) | 17,316,879 | 602,281 |
| Twilio, Class A (1) | 3,560,877 | 391,554 |
| 3,285,000 | ||
| Semiconductors & Semiconductor Equipment 0.4% | ||
| Entegris | 1,994,742 | 93,872 |
| 93,872 | ||
| Software 13.4% | ||
| Atlassian, Class A (1) | 2,752,468 | 345,270 |
| Ceridian HCM Holding (1) | 4,771,507 | 235,569 |
| Checkr, Acquisition Date: 6/29/18, Cost $5,429 (1)(2)(3)(4) | 441,773 | 12,692 |
| Coupa Software (1) | 1,711,705 | 221,786 |
| Datadog, Class A (1) | 464,645 | 15,756 |
| Datadog, Class B, Acquisition Date: 5/7/19, Cost $7,508 (1)(3) | 470,367 | 15,153 |
| Descartes Systems Group (1)(2) | 5,454,863 | 219,885 |
| DocuSign (1) | 6,776,790 | 419,619 |
| Evernote, Acquisition Date: 11/20/12, Cost $2,296 (1)(3)(4) | 190,876 | 441 |
| Guidewire Software (1) | 1,042,008 | 109,807 |
| Medallia (1) | 327,657 | 8,988 |
| nCino, Acquisition Date: 9/16/19, Cost $24,750 (1)(3)(4) | 1,137,954 | 24,750 |
| New Relic (1)(2) | 4,704,695 | 289,103 |
| PagerDuty (1) | 630,277 | 17,805 |
| PagerDuty, Acquisition Date: 8/24/18 - 9/28/18, | ||
| Cost $24,083 (1)(3) | 1,419,053 | 38,084 |
| Paylocity Holding (1) | 1,635,731 | 159,615 |
| Proofpoint (1) | 2,437,301 | 314,534 |
| RealPage (1)(2) | 4,990,975 | 313,733 |
| SS&C Technologies Holdings | 4,556,585 | 234,983 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Toast, Acquisition Date: 9/14/18 - 3/27/19, | ||
| Cost $5,430 (1)(3)(4) | 199,157 | 5,483 |
| Workiva (1)(2) | 2,807,992 | 123,074 |
| Zendesk (1) | 5,315,266 | 387,376 |
| 3,513,506 | ||
| Total Information Technology | 6,985,952 | |
| REAL ESTATE 1.6% | ||
| Real Estate Management & Development 1.6% | ||
| Altus Group (CAD) (2) | 3,717,735 | 112,106 |
| Colliers International Group | 559,391 | 41,982 |
| FirstService (2) | 2,626,001 | 269,349 |
| WeWork, Class A, Acquisition Date: 5/26/15, | ||
| Cost $2,064 (1)(3)(4) | 145,669 | 2,481 |
| Total Real Estate | 425,918 | |
| Total Common Stocks (Cost $15,936,785) | 24,706,556 | |
| PREFERRED STOCKS 0.7% | ||
| HEALTH CARE 0.7% | ||
| Health Care Equipment & Supplies 0.7% | ||
| Sartorius (EUR) (6) | 1,022,663 | 186,443 |
| Total Health Care | 186,443 | |
| Total Preferred Stocks (Cost $100,976) | 186,443 | |
| CONVERTIBLE PREFERRED STOCKS 4.2% | ||
| COMMUNICATION SERVICES 0.1% | ||
| Entertainment 0.1% | ||
| Houzz, Series D, Acquisition Date: 6/3/14, | ||
| Cost $19,726 (1)(3)(4) | 2,632,810 | 16,481 |
| Offerup, Series A-2, Acquisition Date: 3/6/15, | ||
| Cost $6,850 (1)(3)(4) | 1,375,830 | 4,967 |
| Offerup, Series C, Acquisition Date: 3/6/15, | ||
| Cost $11,641 (1)(3)(4) | 2,337,940 | 8,440 |
| Offerup, Series C-1, Acquisition Date: 8/26/16, | ||
| Cost $4,573 (1)(3)(4) | 682,712 | 2,465 |
| Total Communication Services | 32,353 | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| CONSUMER DISCRETIONARY 1.7% | ||
| Diversified Consumer Services 0.1% | ||
| 1stdibs. com, Series D, Acquisition Date: 2/7/19, | ||
| Cost $26,470 (1)(2)(3)(4) | 5,282,277 | 26,470 |
| 26,470 | ||
| Hotels, Restaurants & Leisure 0.4% | ||
| Sweetgreen, Series F, Acquisition Date: 6/30/15, | ||
| Cost $26,916 (1)(2)(3)(4) | 3,509,234 | 60,008 |
| Sweetgreen, Series G, Acquisition Date: 8/15/16 - 2/27/18, | ||
| Cost $20,354 (1)(2)(3)(4) | 2,261,542 | 38,672 |
| Sweetgreen, Series I, Acquisition Date: 9/13/19, | ||
| Cost $8,998 (1)(2)(3)(4) | 526,213 | 8,998 |
| 107,678 | ||
| Internet & Direct Marketing Retail 0.8% | ||
| A Place for Rover, Series G, Acquisition Date: 5/11/18, Cost | ||
| $29,547 (1)(3)(4) | 3,924,648 | 27,276 |
| Coupang, Series G, Acquisition Date: 1/9/15, | ||
| Cost $16,858 (1)(3)(4) | 5,958,970 | 33,971 |
| Evolve Vacation Rental Network, Series 4, Acquisition Date: | ||
| 8/15/14, Cost $906 (1)(2)(3)(4) | 718,332 | 6,149 |
| Evolve Vacation Rental Network, Series 5, Acquisition Date: | ||
| 11/6/15, Cost $4,220 (1)(2)(3)(4) | 1,727,442 | 14,787 |
| Evolve Vacation Rental Network, Series 6, Acquisition Date: | ||
| 1/18/17, Cost $8,679 (1)(2)(3)(4) | 2,218,727 | 18,992 |
| Evolve Vacation Rental Network, Series 7, Acquisition Date: | ||
| 1/10/18, Cost $3,151 (1)(2)(3)(4) | 433,698 | 3,713 |
| Evolve Vacation Rental Network, Series 8, Acquisition Date: | ||
| 3/29/18 - 6/15/18, Cost $17,862 (1)(2)(3)(4) | 2,098,881 | 17,966 |
| Framebridge, Series C, Acquisition Date: 6/20/18, | ||
| Cost $12,363 (1)(2)(3)(4) | 3,558,133 | 12,363 |
| Minted, Series E, Acquisition Date: 10/30/18, | ||
| Cost $23,654 (1)(2)(3)(4) | 1,756,494 | 23,655 |
| Rent the Runway, Series F, Acquisition Date: 3/21/19, | ||
| Cost $17,598 (1)(3)(4) | 787,264 | 17,598 |
| Roofoods, Series F, Acquisition Date: 9/12/17, | ||
| Cost $45,403 (1)(3)(4) | 128,414 | 49,908 |
| Roofoods, Series G, Acquisition Date: 5/16/19, | ||
| Cost $1,539 (1)(3)(4) | 3,683 | 1,539 |
| 227,917 | ||
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| Specialty Retail 0.3% | ||
| Vroom, Series C, Acquisition Date: 7/13/15, | ||
| Cost $9,073 (1)(2)(3)(4) | 764,369 | 13,721 |
| Vroom, Series D, Acquisition Date: 12/22/15, | ||
| Cost $9,072 (1)(2)(3)(4) | 689,031 | 12,369 |
| Vroom, Series E, Acquisition Date: 9/19/16, | ||
| Cost $11,432 (1)(2)(3)(4) | 704,642 | 12,649 |
| Vroom, Series F, Acquisition Date: 6/30/17 - 11/27/17, | ||
| Cost $17,583 (1)(2)(3)(4) | 1,030,809 | 18,504 |
| Vroom, Series G, Acquisition Date: 8/17/18, | ||
| Cost $17,825 (1)(2)(3)(4) | 992,969 | 17,825 |
| 75,068 | ||
| Textiles, Apparel & Luxury Goods 0.1% | ||
| Allbirds, Series A, Acquisition Date: 10/10/18, | ||
| Cost $5,119 (1)(3)(4) | 93,347 | 5,119 |
| Allbirds, Series B, Acquisition Date: 10/10/18, | ||
| Cost $899 (1)(3)(4) | 16,400 | 899 |
| Allbirds, Series C, Acquisition Date: 10/9/18, | ||
| Cost $8,595 (1)(3)(4) | 156,734 | 8,595 |
| Allbirds, Series Seed, Acquisition Date: 10/10/18, | ||
| Cost $2,750 (1)(3)(4) | 50,155 | 2,750 |
| 17,363 | ||
| Total Consumer Discretionary | 454,496 | |
| CONSUMER STAPLES 0.0% | ||
| Food Products 0.0% | ||
| Farmers Business Network, Series D, Acquisition Date: 11/3/17, | ||
| Cost $9,028 (1)(3)(4) | 488,972 | 11,397 |
| Total Consumer Staples | 11,397 | |
| FINANCIALS 0.1% | ||
| Insurance 0.1% | ||
| Go Maps, Series B, Acquisition Date: 12/15/17, | ||
| Cost $9,940 (1)(2)(3)(4) | 936,022 | 11,982 |
| Go Maps, Series B-1, Acquisition Date: 5/15/19, | ||
| Cost $417 (1)(2)(3)(4) | 32,589 | 417 |
| Jetclosing, Series A, Acquisition Date: 5/25/18, | ||
| Cost $8,917 (1)(2)(3)(4) | 4,570,635 | 8,917 |
| Total Financials | 21,316 | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| HEALTH CARE 0.7% | ||
| Biotechnology 0.3% | ||
| Ginkgo Bioworks, Series E, Acquisition Date: 7/30/19 - 9/9/19, | ||
| Cost $21,937 (1)(3)(4) | 148,007 | 22,229 |
| Rapt Therapeutics, Senior Series C-2, Acquisition Date: 6/7/19, | ||
| Cost $4,081 (1)(3)(4) | 1,780,081 | 4,081 |
| Tempus Labs, Series D, Acquisition Date: 3/16/18, | ||
| Cost $8,530 (1)(3)(4) | 910,093 | 21,898 |
| Tempus Labs, Series E, Acquisition Date: 8/23/18, | ||
| Cost $11,140 (1)(3)(4) | 665,388 | 16,439 |
| Tempus Labs, Series F, Acquisition Date: 4/30/19, | ||
| Cost $4,400 (1)(3)(4) | 177,721 | 4,400 |
| 69,047 | ||
| Health Care Equipment & Supplies 0.3% | ||
| JAND, Series D, Acquisition Date: 4/23/15, | ||
| Cost $15,460 (1)(3)(4) | 1,346,025 | 22,802 |
| JAND, Series E, Acquisition Date: 3/9/18, | ||
| Cost $24,677 (1)(3)(4) | 1,570,115 | 26,598 |
| Kardium, Series D, Acquisition Date: 11/29/18, | ||
| Cost $8,865 (1)(3)(4) | 9,149,620 | 8,865 |
| Outset Medical, Series C, Acquisition Date: 4/19/17, | ||
| Cost $13,807 (1)(2)(3)(4) | 5,327,861 | 16,569 |
| Outset Medical, Series D, Acquisition Date: 8/20/18, | ||
| Cost $8,914 (1)(2)(3)(4) | 2,866,132 | 8,914 |
| 83,748 | ||
| Health Care Providers & Services 0.0% | ||
| Babyco, Class A, Acquisition Date: 11/3/17, | ||
| Cost $9,057 (1)(2)(3)(4)(5) | 2,611,790 | 2,272 |
| 2,272 | ||
| Health Care Technology 0.1% | ||
| Doximity, Series C, Acquisition Date: 4/10/14 - 3/22/18, | ||
| Cost $8,769 (1)(3)(4) | 1,894,489 | 16,065 |
| 16,065 | ||
| Total Health Care | 171,132 | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| INDUSTRIALS & BUSINESS SERVICES 0.1% | ||
| Road & Rail 0.1% | ||
| Convoy, Series C, Acquisition Date: 9/14/18, | ||
| Cost $21,158 (1)(3)(4) | 2,979,808 | 21,159 |
| Total Industrials & Business Services | 21,159 | |
| INFORMATION TECHNOLOGY 1.4% | ||
| IT Services 0.1% | ||
| ServiceTitan, Series A-1, Acquisition Date: 11/9/18, | ||
| Cost $55 (1)(3)(4) | 2,099 | 55 |
| ServiceTitan, Series D, Acquisition Date: 11/9/18, | ||
| Cost $27,048 (1)(3)(4) | 1,028,634 | 27,048 |
| 27,103 | ||
| Software 1.3% | ||
| Aurora Innovation, Series B, Acquisition Date: 3/1/19, | ||
| Cost $8,834 (1)(3)(4) | 956,010 | 8,834 |
| Checkr, Series C, Acquisition Date: 4/10/18, | ||
| Cost $25,265 (1)(2)(3)(4) | 1,850,770 | 55,979 |
| Checkr, Series D, Acquisition Date: 9/6/19, | ||
| Cost $45,551 (1)(2)(3)(4) | 1,505,994 | 45,551 |
| Evernote, Series 1, Acquisition Date: 11/20/12, | ||
| Cost $4,591 (1)(3)(4) | 381,752 | 882 |
| Evernote, Series 4, Acquisition Date: 5/2/12 - 11/20/12, | ||
| Cost $14,562 (1)(3)(4) | 1,210,758 | 6,381 |
| Evernote, Series 5, Acquisition Date: 11/8/13, | ||
| Cost $2,274 (1)(3)(4) | 174,948 | 973 |
| Lookout, Series F, Acquisition Date: 3/21/14 - 8/8/14, | ||
| Cost $31,937 (1)(3)(4) | 2,795,838 | 6,123 |
| Plex Systems Holdings, Series B, Acquisition Date: 6/9/14, | ||
| Cost $16,608 (1)(3)(4) | 7,238,750 | 17,807 |
| Seismic Software, Series E, Acquisition Date: 12/13/18, | ||
| Cost $18,216 (1)(3)(4) | 577,906 | 18,216 |
| Tanium, Series G, Acquisition Date: 8/26/15, | ||
| Cost $31,923 (1)(3)(4) | 6,430,431 | 55,904 |
| Toast, Series B, Acquisition Date: 9/14/18, Cost $416 (1)(3)(4) | 24,053 | 662 |
| Toast, Series D, Acquisition Date: 6/27/18, | ||
| Cost $29,721 (1)(3)(4) | 1,717,286 | 47,280 |
| Toast, Series E, Acquisition Date: 3/27/19, | ||
| Cost $10,561 (1)(3)(4) | 386,836 | 10,650 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | |
| (Cost and value in $000s) | ||
| ZenPayroll, Series C, Acquisition Date: 7/16/18, | ||
| Cost $20,951 (1)(3)(4) | 2,755,737 | 36,685 |
| ZenPayroll, Series D, Acquisition Date: 7/16/19, | ||
| Cost $29,246 (1)(3)(4) | 2,196,921 | 29,246 |
| 341,173 | ||
| Total Information Technology | 368,276 | |
| REAL ESTATE 0.1% | ||
| Real Estate Management & Development 0.1% | ||
| WeWork, Series D-1, Acquisition Date: 12/9/14, | ||
| Cost $13,052 (1)(3)(4) | 783,879 | 13,349 |
| WeWork, Series D-2, Acquisition Date: 12/9/14, | ||
| Cost $10,256 (1)(3)(4) | 615,906 | 10,489 |
| Total Real Estate | 23,838 | |
| Total Convertible Preferred Stocks (Cost $919,819) | 1,103,967 | |
| CONVERTIBLE BONDS 0.0% | ||
| Reed Krakoff International, Acquisition Date: 12/29/14 - | ||
| 3/26/15, Cost $2,130, 8.00%, 12/15/19 (1)(2)(3)(4)(7) | 2,130,706 | — |
| Total Convertible Bonds (Cost $2,130) | — | |
| BANK LOANS 0.1%(8) | ||
| CORPORATE SECURITIES 0.1% | ||
| Blue Nile, FRN, 3M USD LIBOR + 6.50%, 8.624%, 2/17/23 (4) | 16,569,625 | 12,924 |
| Uber Technologies, FRN, 3M USD LIBOR + 4.00%, 6.028%, | ||
| 4/4/25 | 17,335,563 | 17,209 |
| Total Corporate Securities | 30,133 | |
| Total Bank Loans (Cost $33,518) | 30,133 | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Shares/Par | $ Value | ||
| (Cost and value in $000s) | |||
| SHORT-TERM INVESTMENTS 0.4% | |||
| Money Market Funds 0.4% | |||
| T. Rowe Price Government Reserve Fund, 2.00% (2)(9) | 110,172,640 | 110,173 | |
| Total Short-Term Investments (Cost $110,173) | 110,173 | ||
| Total Investments in Securities 99.8% | |||
| (Cost $17,103,401) | $ | 26,137,272 | |
| Other Assets Less Liabilities 0.2% | 39,305 | ||
| Net Assets 100.0% | $ | 26,176,577 |
| ‡ | Shares/Par are denominated in U. S. dollars unless otherwise noted. |
| (1) | Non-income producing |
| (2) | Affiliated Companies |
| (3) | 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 $1,583,639 and represents 6.0% of net assets. | |
| (4) | Level 3 in fair value hierarchy. |
| (5) | Investment in a partnership held indirectly through a limited liability company |
| that is owned by the fund and treated as a corporation for U. S. tax purposes. | |
| (6) | Preferred stocks are shares that carry certain preferential rights. The dividend |
| rate may not be consistent each pay period and could be zero for a particular | |
| year. | |
| (7) | Security is in default or has failed to make a scheduled interest and/or |
| principal payment. | |
| (8) | 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 their weighted average | |
| rate. | |
| (9) | Seven-day yield |
| 3M USD LIBOR | Three month USD LIBOR (London interbank offered rate) |
| ADR | American Depositary Receipts |
| CAD | Canadian Dollar |
| EUR | Euro |
| FRN | Floating Rate Note |
| GBP | British Pound |
| IDR | Indonesian Rupiah |
| USD | U. S. Dollar |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS 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, 2019. 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 | |||
| 1stdibs. com, Series D | $ | — | $ | — | $ | — |
| Abcam | 1,293 | 1,472 | 718 | |||
| Alclear Holdings, Class B | — | — | — | |||
| Altus Group | (1,602) | 43,084 | 784 | |||
| Armstrong Worldwide Industries | 1,010 | 136,629 | 2,216 | |||
| Babyco, Class A | — | (4,075) | — | |||
| Black Knight | 15,284 | 119,226 | — | |||
| Booz Allen Hamilton Holding | 1,900 | 179,596 | 5,374 | |||
| Boston Beer, Class A | 70 | 53,170 | — | |||
| Bright Horizons Family Solutions | 5,362 | 177,075 | — | |||
| Cable One | 5,028 | 150,029 | 2,219 | |||
| Checkr | — | 7,263 | — | |||
| Checkr, Series C | — | 30,714 | — | |||
| Checkr, Series D | — | — | — | |||
| Descartes Systems Group | 1,711 | 57,885 | — | |||
| Evolve Vacation Rental Network, | ||||||
| Series 4 | — | 930 | — | |||
| Evolve Vacation Rental Network, | ||||||
| Series 5 | — | 2,237 | — | |||
| Evolve Vacation Rental Network, | ||||||
| Series 6 | — | 2,873 | — | |||
| Evolve Vacation Rental Network, | ||||||
| Series 7 | — | 562 | — | |||
| Evolve Vacation Rental Network, | ||||||
| Series 8 | — | 104 | — | |||
| FirstService | 785 | 96,679 | 829 | |||
| Framebridge, Series C | — | — | — | |||
| GCI Liberty, Class A | 842 | 152,113 | — | |||
| Go Maps, Series B | — | 2,042 | — | |||
| Go Maps, Series B-1 | — | — | — | |||
| Goosehead Insurance, Class A | 553 | 20,728 | 382 | |||
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Affiliated Companies (continued) | |||||
| ($000s) | |||||
| Change in Net | |||||
| Net Realized Gain | Unrealized | Investment | |||
| Affiliate | (Loss) | Gain/Loss | Income | ||
| Jetclosing, Series A | — | — | — | ||
| Minted, Series E | — | 1 | — | ||
| New Relic | (7) | (123,428) | — | ||
| Ollie's Bargain Outlet Holdings | 173 | (122,807) | — | ||
| Outset Medical, Series C | — | (1) | — | ||
| Outset Medical, Series D | — | — | — | ||
| Palomar Holdings | 19 | 14,468 | — | ||
| RBC Bearings | 16,349 | 15,079 | — | ||
| RealPage | 301 | 72,217 | — | ||
| Reed Krakoff International | — | — | — | ||
| Reed Krakoff International Conv. | |||||
| Bond | — | — | — | ||
| Rosetta Stone | (133) | (5,474) | — | ||
| Shockwave Medical | 13,517 | (7,261) | — | ||
| StoneCo, Class A^^ | 3,526 | 447,989 | — | ||
| Sweetgreen, Series F | — | 14,248 | — | ||
| Sweetgreen, Series G | — | 9,181 | — | ||
| Sweetgreen, Series I | — | — | — | ||
| Vail Resorts | 48,543 | 4,484 | 10,514 | ||
| Vroom | — | 1 | — | ||
| Vroom, Series C | — | — | — | ||
| Vroom, Series D | — | — | — | ||
| Vroom, Series E | — | — | — | ||
| Vroom, Series F | — | — | — | ||
| Vroom, Series G | — | — | — | ||
| Wheels Up Partners, Series B | — | 7,271 | — | ||
| Wheels Up Partners, Series C | — | 5,384 | — | ||
| Wheels Up Partners, Series D | — | — | — | ||
| Workiva | 494 | 16,428 | — | ||
| T. Rowe Price Government | |||||
| Reserve Fund | — | — | 9,096 | ||
| Affiliates not held at period end | 383,243 | (503,142) | 3,119 | ||
| Totals | $ | 498,261# | $ 1,074,974 | $ | 35,251+ |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Affiliated Companies (continued) | |||||
| ($000s) | |||||
| Supplementary Investment Schedule | |||||
| Value | Purchase | Sales | Value | ||
| Affiliate | 12/31/18 | Cost | Cost | 9/30/19 | |
| 1stdibs. com, Series D | $ | — | $ 26,470 | $ — | $ 26,470 |
| Abcam | 207,937 | 5,553 | 654 | 214,308 | |
| Alclear Holdings, Class B | 178,346 | — | — | 178,346 | |
| Altus Group | 57,782 | 15,829 | 4,589 | 112,106 | |
| Armstrong Worldwide | |||||
| Industries | 169,536 | 214,928 | 9,332 | 511,761 | |
| Babyco, Class A | 6,347 | — | — | 2,272 | |
| Black Knight | 387,833 | — | 58,863 | * | |
| Bloom Energy, Class A | 12,118 | — | 21,075 | — | |
| Booz Allen Hamilton | |||||
| Holding | * | 308,045 | 12,468 | 708,629 | |
| Boston Beer, Class A | 112,267 | 40,773 | 5,985 | 200,225 | |
| Bright Horizons Family | |||||
| Solutions | 516,232 | 69,282 | 44,150 | 718,439 | |
| Cable One | 303,714 | 15,734 | 11,159 | 458,318 | |
| Cargurus | 162,861 | — | 32,707 | — | |
| Checkr | * | — | — | 12,692 | |
| Checkr, Series C | * | — | — | 55,979 | |
| Checkr, Series D | — | 45,551 | — | 45,551 | |
| Descartes Systems Group | 109,617 | 59,940 | 7,557 | 219,885 | |
| Ellie Mae | 113,595 | — | 169,186 | — | |
| Eventbrite, Class A++ | 119,981 | — | 70,011 | — | |
| Evolve Vacation Rental | |||||
| Network, Series 4 | 5,219 | — | — | 6,149 | |
| Evolve Vacation Rental | |||||
| Network, Series 5 | 12,550 | — | — | 14,787 | |
| Evolve Vacation Rental | |||||
| Network, Series 6 | 16,119 | — | — | 18,992 | |
| Evolve Vacation Rental | |||||
| Network, Series 7 | 3,151 | — | — | 3,713 | |
| Evolve Vacation Rental | |||||
| Network, Series 8 | 17,862 | — | — | 17,966 | |
| Fiesta Restaurant Group | 28,153 | — | 42,828 | — | |
| FirstService | 161,920 | 20,710 | 9,960 | 269,349 | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Affiliated Companies (continued) | ||||
| ($000s) | ||||
| Supplementary Investment Schedule | ||||
| Value | Purchase | Sales | Value | |
| Affiliate | 12/31/18 | Cost | Cost | 9/30/19 |
| Framebridge, Series C | 12,363 | — | — | 12,363 |
| GCI Liberty, Class A | 307,872 | — | 17,826 | 442,159 |
| GCP Applied Technologies | 141,236 | — | 167,238 | — |
| GenMark Diagnostics | 19,040 | — | 28,551 | — |
| Go Maps, Series B | 9,940 | — | — | 11,982 |
| Go Maps, Series B-1 | — | 417 | — | 417 |
| Goosehead Insurance, | ||||
| Class A | 25,406 | — | 717 | 45,417 |
| Jetclosing, Series A | 8,917 | — | — | 8,917 |
| Lindblad Expeditions | ||||
| Holdings | 36,801 | — | 27,830 | — |
| Lindblad Expeditions | ||||
| Holdings, Warrants, 7/10/20 | 2,429 | — | 396 | — |
| Minted, Series E | * | — | — | 23,655 |
| Mobile Mini | 181,303 | — | 193,412 | — |
| New Relic | — | 413,098 | 567 | 289,103 |
| Ollie's Bargain Outlet | ||||
| Holdings | * | 390,931 | 716 | 291,904 |
| Outset Medical, Series C | 16,570 | — | — | 16,569 |
| Outset Medical, Series D | 8,914 | — | — | 8,914 |
| Palomar Holdings | — | 35,616 | 30 | 50,054 |
| RBC Bearings | 162,321 | — | 25,495 | * |
| RealPage | 241,179 | 13,864 | 13,527 | 313,733 |
| Redfin | 109,797 | — | 96,428 | — |
| Reed Krakoff International | — | — | — | — |
| Reed Krakoff International | ||||
| Conv. Bond | — | — | — | — |
| RH | 238,152 | — | 81,524 | — |
| Rosetta Stone | * | 20,945 | 767 | 26,989 |
| Shockwave Medical | — | 72,516 | 12,304 | 52,951 |
| StoneCo, Class A^^ | 268,500 | 116,074 | 230,282 | 602,281 |
| Sweetgreen, Series F | 45,760 | — | — | 60,008 |
| Sweetgreen, Series G | 29,491 | — | — | 38,672 |
| Sweetgreen, Series I | — | 8,998 | — | 8,998 |
| Tableau Software, Class A | 443,820 | 39,134 | 268,721 | — |
| Upwork** | 136,068 | — | 47,465 | — |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
| Affiliated Companies (continued) | ||||
| ($000s) | ||||
| Supplementary Investment Schedule | ||||
| Value | Purchase | Sales | Value | |
| Affiliate | 12/31/18 | Cost | Cost | 9/30/19 |
| Vail Resorts | 605,734 | 36,857 | 157,404 | 489,671 |
| Valmont Industries | 183,299 | — | 217,273 | — |
| Vroom | 3,161 | — | — | 3,162 |
| Vroom, Series C | 13,721 | — | — | 13,721 |
| Vroom, Series D | 12,369 | — | — | 12,369 |
| Vroom, Series E | 12,649 | — | — | 12,649 |
| Vroom, Series F | 18,504 | — | — | 18,504 |
| Vroom, Series G | 17,825 | — | — | 17,825 |
| Wheels Up Partners, | ||||
| Series B | 20,534 | — | — | 27,805 |
| Wheels Up Partners, | ||||
| Series C | 15,206 | — | — | 20,590 |
| Wheels Up Partners, | ||||
| Series D | — | 30,921 | — | 30,921 |
| Workiva | 90,947 | 16,177 | 478 | 123,074 |
| T. Rowe Price Government | ||||
| Reserve Fund | 81,980 | ¤ | ¤ | 110,173 |
| $ 6,981,487^ | ||||
| # | Capital gain distributions from mutual funds represented $0 of the net realized gain (loss) . |
| * | On the date indicated, issuer was held but not considered an affiliated company. |
| ^^ Includes previously reported affiliate StoneCo and StoneCo, Class B; acquired through a | |
| corporate action. | |
| ** Includes previously reported affiliate Upwork; acquired through a corporate action. | |
| + | Investment income comprised $35,251 of dividend income and $0 of interest income. |
| ++ Includes previously reported affiliate Eventbrite, Series B; acquired through a corporate | |
| action. | |
| ¤ | Purchase and sale information not shown for cash management funds. |
| ^ | The cost basis of investments in affiliated companies was $4,589,604. |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE NEW HORIZONS FUND
Unaudited
NOTES TO PORTFOLIO OF
INVESTMENTS
T. Rowe Price New Horizons 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 BoardAccounting Standards CodificationTopic 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 NEW HORIZONS 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 for
domestic securities and the last quoted sale or closing price for international securities.
For valuation purposes, the last quoted prices of non-U.S. equity securities may be adjusted to reflect the fair value of
such securities at the close of the NYSE. If the fund determines that developments between the close of a foreign market
and the close of the NYSE will affect the value of some or all of its portfolio securities, the fund will adjust the previous
quoted prices to reflect what it believes to be the fair value of the securities as of the close of the NYSE. In deciding
whether it is necessary to adjust quoted prices to reflect fair value, the fund reviews a variety of factors, including
developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments
trading in U.S. markets that represent foreign securities and baskets of foreign securities. The fund may also fair value
securities in other situations, such as when a particular foreign market is closed but the fund is open. The fund uses
outside pricing services to provide it with quoted prices and information to evaluate or adjust those prices. The fund
cannot predict how often it will use quoted prices and how often it will determine it necessary to adjust those prices to
reflect fair value. As a means of evaluating its security valuation process, the fund routinely compares quoted prices, the
next day’s opening prices in the same markets, and adjusted prices.
Actively traded equity securities listed on a domestic exchange generally are categorized in Level 1 of the fair value
hierarchy. Non-U.S. equity securities generally are categorized in Level 2 of the fair value hierarchy despite the
availability of quoted prices because, as described above, the fund evaluates and determines whether those quoted prices
reflect fair value at the close of the NYSE or require adjustment. 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 dealers who make markets
in such securities or by an independent pricing service, which considers 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 denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange
rate, using the mean of the bid and asked prices of such currencies against U.S. dollars as quoted by a major bank.
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.
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
T. ROWE PRICE NEW HORIZONS FUND
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.
Valuation Inputs
The following table summarizes the fund’s financial instruments, based on the inputs used to determine their fair values
on September 30, 2019 (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 | $ | 23,079,977 | $ 1,200,144 | $ 426,435 | $ 24,706,556 |
| Preferred Stocks | — | 186,443 | — | 186,443 | |
| Convertible Preferred Stocks | — | — | 1,103,967 | 1,103,967 | |
| Convertible Bonds | — | — | — | — | |
| Bank Loans | — | 17,209 | 12,924 | 30,133 | |
| Short-Term Investments | 110,173 | — | — | 110,173 | |
| Total | $ | 23,190,150 | $ 1,403,796 | $ 1,543,326 | $ 26,137,272 |
Following is a reconciliation of the fund’s Level 3 holdings for the period ended September 30, 2019. Gain (loss) reflects
both realized and change in unrealized gain/loss on Level 3 holdings during the period, if any. The change in unrealized
gain/loss on Level 3 instruments held at September 30, 2019, totaled $30,496,000 for the period ended September 30,
2019. During the period, transfers out of Level 3 were because observable market data became available for the security.
Additionally, during the period, transfers out of Level 3 include securities acquired as a result of a corporate action.
| ($000s) | Beginning | Gain (Loss) | Transfers | Ending | |||||||
| Balance | During | Total | Out of | Balance | |||||||
| 1/1/19 | Period | Purchases | Total Sales | Level 3 | 9/30/19 | ||||||
| Investment in Securities | |||||||||||
| Common Stocks | $ 361,000 | $ | 18,576 | $ | 58,312 | $ | (8,833) | $ | (2,620) | $ | 426,435 |
| Convertible Preferred | |||||||||||
| Stocks | 923,917 | 21,883 | 179,635 | (5) | (21,463) | 1,103,967 | |||||
| Convertible Bonds | – | – | – | – | – | – | |||||
| Bank Loans | 17,097 | (3,473) | – | (700) | – | 12,924 | |||||
| Total | $ 1,302,014 | $ | 36,986 | $ | 237,947 | $ | (9,538) | $ | (24,083) | $ | 1,543,326 |
In accordance with GAAP, the following table provides quantitative information about significant unobservable inputs
used to determine the fair valuations of the fund’s Level 3 assets, by class of financial instrument; it also indicates the
sensitivity of the Level 3 valuations to changes in those significant unobservable inputs. Because the Valuation
Committee considers a wide variety of factors and inputs, both observable and unobservable, in determining fair values,
the unobservable inputs presented do not reflect all inputs significant to the fair value determination.
T. ROWE PRICE NEW HORIZONS FUND
| ($000s) | Impact to | ||||
| Significant | Value or | Valuation from | |||
| Investments in | Market | Valuation | Unobservable | Range of | an Increase |
| Securities | Value ($000s) | Technique(s)+ | Input(s) | Input(s) | in Input* |
| Common Stocks | $ 426,435 | Recent comparable | Discount Factor | 0% – 5% | —# |
| transaction price(s) | |||||
| Expected | Discount for Legal | 15% | Decrease | ||
| present value | Uncertainty | ||||
| Discount for | 5% | Decrease | |||
| Regulatory Uncertainty | |||||
| Discount Rate for | 7% | Decrease | |||
| Cost of Equity | |||||
| Market comparable | Enterprise Value to | 2.9x – 5.1x | Increase | ||
| Sales Multiple | |||||
| Discount for lack of | 10% | Decrease | |||
| marketability | |||||
| Discount Rate for | 25% | Decrease | |||
| Cost of Equity | |||||
| Gross Profit | 30% – 59% | Increase | |||
| Growth Rate | |||||
| Sales Growth Rate | 15% – 46% | Increase | |||
| Gross Merchandise | 37% | Increase | |||
| Value Growth Rate | |||||
| EBITDA Growth Rate | 61% | Increase | |||
| Acquisition Premium | 10% | Increase | |||
| Enterprise Value to | 0.7x – 0.8x | Increase | |||
| Gross Merchandise | |||||
| Value Multiple | |||||
| Enterprise Value to | 20.2x – 24.5x | Increase | |||
| EBITDA Multiple | |||||
| Enterprise Value to | 4.5x – 6.9x | Increase | |||
| Gross Profit Multiple | |||||
| Estimated | —# | —# | —# | ||
| liquidation value | |||||
| Discount for lack | 100% | Decrease | |||
| of collectability | |||||
| Convertible | $ 1,103,967 | Recent comparable | Discount Factor | 0% – 7% | Decrease |
| Preferred Stocks | transaction price(s) | ||||
| Market Comparable | Sales Growth Rate | 12% - 46% | Increase | ||
| Gross Merchandise | 37% | Increase | |||
| Value Growth Rate | |||||
| Enterprise Value to | 2.2x – 9.3x | Increase | |||
| Sales Multiple | |||||
| Enterprise Value to | 0.7x – 1.3x | Increase | |||
| Gross Merchandise | |||||
| Value Multiple | |||||
T. ROWE PRICE NEW HORIZONS FUND
| ($000s) | Impact to | |||||
| Significant | Value or | Valuation from | ||||
| Investments in | Market | Valuation | Unobservable | Range of | an Increase | |
| Securities | Value ($000s) | Technique(s)+ | Input(s) | Input(s) | in Input* | |
| (continued) | ||||||
| Enterprise Value to | 20.2x – 24.5x | Increase | ||||
| EBITDA Multiple | ||||||
| Discount for lack of | 10% | Decrease | ||||
| marketability | ||||||
| Discount for | 75% | Decrease | ||||
| Uncertainty | ||||||
| Discount Rate for | 25% | Decrease | ||||
| Cost of Equity | ||||||
| Enterprise Value to | 3.3x – 10.9x | Increase | ||||
| Gross Profit Multiple | ||||||
| EBITDA Growth Rate | 61% | Increase | ||||
| Gross Profit | 12% – 59% | Increase | ||||
| Growth Rate | ||||||
| Acquisition Premium | 10% | Increase | ||||
| Convertible | $ | — | Estimated | Discount for lack of | 100% | Decrease |
| Bonds | liquidation value | collectability | ||||
| Bank Loans | $ | 12,924 | Recent comparable | —# | —# | —# |
| transaction price(s) | ||||||
| Pricing service | —# | —# | —# | |||
| + | Valuation techniques may change in order to reflect management’s judgment of current market participant |
| assumptions. | |
| * | Represents the directional change in the fair value of the Level 3 investment(s) that would result from an increase in |
| the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases | |
| and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. | |
| # | No quantitative unobservable inputs significant to the valuation technique were created by the fund’s management. |
