T. Rowe Price Balanced Fund (RPBAX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-06275

T. Rowe Price Balanced Fund, Inc.

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: December 31

Date of reporting period: December 31, 2022

Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1

Highlights

and

Market

Commentary

Management’s

Discussion

of

Fund

Performance

Performance

and

Expenses

Financial

Highlights

Portfolio

of

Investments

Financial

Statements

and

Notes

Additional

Fund

Information

December

31,

2022

Annual

Report

For

more

insights

from

T.

Rowe

Price

investment

professionals,

go

to

troweprice.com

.

T.

ROWE

PRICE

RPBAX

Balanced

Fund

–

.

RBAIX

Balanced

Fund–

.

I Class

T.

ROWE

PRICE

Balanced

Fund

HIGHLIGHTS

The

Balanced

Fund

underperformed

its

combined

index

portfolio

and

its

Lipper

peer

benchmark

for

the

12-month

period

ended

December

31,

2022.

Security

selection

detracted

from

relative

performance,

while

exposure

to

diversifying

sectors

not

included

in

the

benchmark

and

tactical

decisions

to

overweight

or

underweight

various

asset

classes

added

value.

Within

equities,

we

are

nearly

balanced

between

value

and

growth,

as

we

have

moderated

our

overweight

to

value

given

relative

outperformance

over

the

last

12

months.

The

slowing

growth

backdrop

is

unfavorable

for

cyclicals,

while

higher

rates

weigh

on

growth-oriented

equities.

Within

fixed

income,

we

are

overweight

high

yield,

where

we

believe

valuations

offer

reasonable

compensation

for

risks.

Given

the

uncertain

impact

of

the

forces

driving

global

financial

markets,

we

believe

that

the

Balanced

Fund’s

broad

diversification

and

the

strength

of

T.

Rowe

Price’s

fundamental

research

platform

should

benefit

our

investors

over

time

across

a

range

of

market

and

economic

environments.

Log

in

to

your

account

at

troweprice.com

for

more

information.

*

Certain

mutual

fund

accounts

that

are

assessed

an

annual

account

service

fee

can

also

save

money

by

switching

to

e-delivery.

T.

ROWE

PRICE

Balanced

Fund

Market

Commentary

1

Dear

Shareholder

Nearly

all

major

global

stock

and

bond

indexes

fell

sharply

in

2022,

as

investors

contended

with

persistently

high

inflation,

tightening

financial

conditions,

and

slowing

economic

and

corporate

earnings

growth.

Double-digit

losses

were

common

in

equity

markets

around

the

world,

and

bond

investors

also

faced

a

historically

tough

environment

amid

a

sharp

rise

in

interest

rates.

Value

shares

declined

but

outperformed

growth

stocks

by

a

considerable

margin

as

equity

investors

turned

risk

averse

and

as

rising

rates

put

downward

pressure

on

growth

stock

valuations.

Emerging

markets

stocks

generally

underperformed

shares

in

developed

markets.

Meanwhile,

the

U.S.

dollar

strengthened

versus

most

currencies

during

the

period,

which

weighed

on

returns

for

U.S.

investors

in

international

securities.

Within

the

S&P

500

Index,

energy

was

a

rare

bright

spot,

gaining

more

than

60%

as

oil

prices

jumped

in

response

to

Russia’s

invasion

of

Ukraine

and

concerns

over

commodity

supply

shortages.

Defensive

shares,

such

as

utilities,

consumer

staples,

and

health

care,

held

up

relatively

well

and

finished

the

year

with

roughly

flat

returns.

Conversely,

communication

services,

consumer

discretionary,

and

information

technology

shares

suffered

the

largest

declines.

Elevated

inflation

remained

a

leading

concern

for

investors

throughout

the

period,

although

there

were

signs

that

price

increases

were

moderating

by

year-

end.

November’s

consumer

price

index

data

showed

headline

inflation

rising

7.1%

on

a

12-month

basis,

the

lowest

level

since

December

2021

but

still

well

above

the

Federal

Reserve’s

2%

long-term

target.

In

response

to

the

high

inflation

readings,

global

central

banks

tightened

monetary

policy,

and

investors

focused

on

communications

from

central

bank

officials

on

how

high

rates

would

have

to

go.

The

Fed,

which

at

the

end

of

2021

had

forecast

that

it

would

only

need

to

raise

interest

rates

0.75

percentage

point

in

all

of

2022,

raised

its

short-term

lending

benchmark

from

near

zero

in

March

to

a

target

range

of

4.25%

to

4.50%

by

December

and

indicated

that

additional

hikes

are

likely.

Bond

yields

increased

considerably

across

the

U.S.

Treasury

yield

curve

as

the

Fed

tightened

monetary

policy,

with

the

yield

on

the

benchmark

10-year

U.S.

Treasury

note

climbing

from

1.52%

at

the

start

of

the

period

to

3.88%

at

the

end

of

the

year.

Significant

inversions

in

the

yield

curve,

which

are

often

considered

a

warning

sign

of

a

coming

recession,

occurred

during

the

period

as

shorter-maturity

Treasuries

experienced

the

largest

yield

increases.

The

T.

ROWE

PRICE

Balanced

Fund

2

sharp

increase

in

yields

led

to

historically

weak

results

across

the

fixed

income

market,

with

the

Bloomberg

U.S.

Aggregate

Bond

Index

delivering

its

worst

year

on

record.

(Bond

prices

and

yields

move

in

opposite

directions.)

As

the

period

came

to

an

end,

the

economic

backdrop

appeared

mixed.

Although

manufacturing

gauges

have

drifted

toward

contraction

levels,

the

U.S.

jobs

market

remained

resilient,

and

corporate

and

household

balance

sheets

appeared

strong.

Meanwhile,

the

housing

market

has

weakened

amid

rising

mortgage

rates.

The

past

year

has

been

a

trying

time

for

investors

as

few

sectors

remained

untouched

by

the

broad

headwinds

that

markets

faced,

and

volatility

may

continue

in

the

near

term

as

central

banks

tighten

policy

amid

slowing

economic

growth.

However,

in

our

view,

there

continue

to

be

opportunities

for

selective

investors

focused

on

fundamentals.

Valuations

in

most

global

equity

markets

have

improved

markedly,

although

U.S.

equities

still

appear

relatively

expensive

by

historical

standards,

while

bond

yields

have

reached

some

of

the

most

attractive

levels

since

the

2008

global

financial

crisis.

We

believe

this

environment

makes

skilled

active

management

a

critical

tool

for

identifying

risks

and

opportunities,

and

our

investment

teams

will

continue

to

use

fundamental

research

to

identify

securities

that

can

add

value

to

your

portfolio

over

the

long

term.

Thank

you

for

your

continued

confidence

in

T.

Rowe

Price.

Sincerely, 

Robert

Sharps

CEO

and

President

T.

ROWE

PRICE

Balanced

Fund

Management’s

Discussion

of

Fund

Performance

3

INVESTMENT

OBJECTIVE 

The

fund

seeks

to

provide

capital

growth,

current

income,

and

preservation

of

capital

through

a

portfolio

of

stocks

and

fixed-income

securities.

FUND

COMMENTARY

How

did

the

fund

perform

in

the

past 12

months?

The

Balanced

Fund

returned

-17.26%

for

the

12

months

ended

December

31,

2022,

and

underperformed

its

combined

index

portfolio—a

custom-weighted

benchmark

composed

of

multiple

indexes

that

represent

the

asset

classes

in

which

the

fund

invests—the

Morningstar

Moderate

Target

Risk

Index,

and

the

Lipper

Mixed-Asset

Target

Allocation

Growth

Funds

Index.

(Returns

for

the

I

Class

varied

slightly,

reflecting

its

different

fee

structure.

Past

performance

cannot

guarantee

future

results.

)

What

factors

influenced

the

fund’s

performance?

Security

selection

detracted

from

relative

performance.

Most

notably,

our

allocation

to

U.S.

large-cap

growth

stocks

posted

double-digit

losses,

lagging

its

style-specific

benchmark.

Stock

selection

and

an

overweight

in

communication

services

was

a

meaningful

drag.

During

the

period,

digital

advertising

came

under

severe

pressure

as

slowing

demand

from

advertisers

due

to

macroeconomic

uncertainty

and

new

rules

around

data

privacy

affected

social

media

platforms’

targeting

and

measurement

capabilities.

The

allocation

to

U.S.

large-cap

value

stocks

also

held

back

relative

performance

as

an

underweight

to

the

strong-performing

energy

sector

weighed.

Security

selection

in

the

international

equity

strategy,

which

trailed

its

style-specific

benchmark,

further

weighed

on

performance.

PERFORMANCE

COMPARISON

Total

Return

Periods

Ended

12/31/22

6

Months

12

Months

Balanced

Fund

–

.

0.40‌%

-17.26‌%

Balanced

Fund–

.

I  Class

0.49‌

-17.12‌

Morningstar

Moderate

Target

Risk

Index

1.38‌

-14.77‌

Combined

Index

Portfolio*

0.80‌

-15.37‌

Lipper

Mixed-Asset

Target

Allocation

Growth

Funds

Index

1.22‌

-15.88‌

*

For

a

definition

of

the

benchmark,

please

see

the

Benchmark

Information

section.

T.

ROWE

PRICE

Balanced

Fund

4

Exposure

to

diversifying

sectors

not

included

in

the

fund’s

benchmark

contributed

to

relative

performance.

Real

assets

stocks

outperformed

global

equities

and

added

value;

however,

the

impact

was

partly

offset

by

an

underweight

allocation

to

the

sector

at

the

beginning

of

the

period.

We

closed

the

underweight

by

May

and

are

now

neutral

to

the

sector.

Commodities,

such

as

coal

and

natural

gas,

emerged

as

clear

leaders

with

robust

gains.

On

the

other

hand,

real

estate

stocks

fell

sharply,

hurt

by

substantial

increases

in

interest

rates.

High

yield

bonds

fell

as

credit

spreads

widened,

and

investors

were

concerned

about

the

potential

for

weaker

corporate

earnings

and

a

recession

in

2023

but

outperformed

more

interest

rate-sensitive

investment-

grade

issues

for

the

year.

Exposure

to

high

yield

debt

added

value.

Tactical

decisions

added

value

for

the

period.

Equity

and

fixed

income

markets

posted

steep

losses

for

the

12-month

period,

and

the

fund’s

overweight

to

cash

relative

to

equities

and

fixed

income

was

beneficial.

Our

underweight

to

U.S.

large-cap

growth

stocks

also

lifted

relative

results

as

the

segment

significantly

underperformed

value

peers

for

the

year.

An

opportunistic

tilt

toward

inflation-

linked

securities

in

the

first

half

of

the

year

further

added

value.

How

is

the

fund

positioned?

We

are

underweight

to

stocks

and

bonds

relative

to

cash

as

we

believe

the

weakening

outlook

for

growth

and

earnings

is

cause

for

caution

amid

still-elevated

inflation

and

continued

policy

tightening

by

central

banks.

We

remain

modestly

overweight

cash

relative

to

bonds,

given

attractive

short-term

yields.

Cash

also

provides

a

source

of

liquidity

in

the

context

of

potential

market

opportunities.

SECURITY

DIVERSIFICATION

Balanced

Fund

T.

ROWE

PRICE

Balanced

Fund

5

Stocks

On

a

regional

basis,

we

are

modestly

overweight

to

international

stocks

relative

to

U.S.

stocks

given

more

attractive

valuations.

We

believe

the

global

growth

outlook

may

benefit

from

potential

reopening

and

stabilization

in

China.

However,

inflation

concerns,

tighter

central

bank

policy,

an

energy

crisis

in

Europe,

and

U.S.

dollar

strength

remain

notable

risks.

U.S.

stocks

remain

expensive

on

a

relative

basis,

although

the

U.S.

economy

appears

to

be

more

resilient

than

the

rest

of

the

world,

and

its

less

cyclical

nature

could

provide

support

as

global

growth

weakens.

In

the

U.S.,

we

are

nearly

balanced

between

value

and

growth

equities,

with

a

tilt

toward

core

stocks

to

moderate

the

cyclical

exposure

of

our

equity

allocation.

The

slowing

economic

growth

backdrop

is

unfavorable

for

cyclicals,

while

higher

interest

rates

weigh

on

growth-oriented

equities.

Core

equities

are

generally

less

cyclical

or

have

less

interest

rate

sensitivity

than

value

or

growth

styles,

respectively.

We

are

neutral

to

inflation-sensitive

real

assets

equities,

which

we

believe

may

provide

a

hedge

should

inflationary

pressures

persist

longer

than

expected.

Commodity

prices

may

face

further

pressure

due

to

economic

concerns,

although

energy

demand

could

be

bolstered

as

China

begins

reopening.

The

real

estate

sector

remains

attractive

in

the

context

of

economic

recovery

as

the

sector

offers

income

and

an

ability

to

raise

rents,

but

equity

prices

remain

vulnerable

to

rising

rates.

T.

ROWE

PRICE

Balanced

Fund

6

Bonds

We

are

overweight

to

high

yield

bonds

as

yields

in

the

sector

offer

reasonable

compensation

for

risk,

in

our

view.

High

yield

credit

fundamentals

remain

supportive

in

the

face

of

slowing

economic

growth;

however,

default

rates

are

likely

to

rise

from

historically

low

levels

toward

longer-run

averages.

What

is

portfolio

management’s

outlook?

Global

equity

and

bond

markets

fell

sharply

in

2022

but

bounced

off

recent

lows

at

the

end

of

the

period

on

signs

that

inflation

is

beginning

to

ease.

Capital

markets

appear

to

have

priced

in

a

significant

slowdown

in

the

global

economic

growth

environment

heading

into

2023,

although

the

duration

and

magnitude

remain

uncertain

as

the

world’s

major

central

banks

continue

efforts

to

bring

inflation

under

control

by

hiking

interest

rates

and

draining

liquidity

from

the

markets.

However,

signs

suggesting

easing

inflation

pressures

have

emerged

in

recent

months.

Key

input

costs—such

as

oil

and

other

commodities—have

declined,

while

labor

participation

and

employment

data

suggest

a

resilient

labor

market

in

the

U.S.

despite

an

uncertain

growth

outlook.

*

Sources:

Credit

ratings

for

the

securities

held

in

the

fund

are

provided

by

Moody’s,

Standard

&

Poor’s,

and

Fitch

and

are

converted

to

the

Standard

&

Poor’s

nomenclature.

If

the

rating

agencies

differ,

the

highest

rating

is

applied

to

the

security.

If

a

rating

is

not

available,

the

security

is

classified

as

Not

Rated.

T.

Rowe

Price

uses

the

rating

of

the

underlying

investment

vehicle

to

determine

the

creditworthiness

of

credit

default

swaps

and

sovereign

securities.

The

fund

is

not

rated

by

any

agency.

**

U.S.

government

agency

securities

are

issued

or

guaranteed

by

a

U.S.

government

agency

and

may

include

conventional

pass-through

securities

and

collateralized

mortgage

obligations;

unlike

Treasuries,

government

agency

securities

are

not

issued

directly

by

the

U.S.

government

and

are

generally

unrated

but

may

have

credit

support

from

the

U.S.

Treasury

(e.g.,

FHLMC

and

FNMA

issues)

or

a

direct

government

guarantee

(e.g.,

GNMA

issues).

Therefore,

this

category

may

include

rated

and

unrated

securities.

***

U.S.

Treasury

securities

are

issued

by

the

U.S.

Treasury

and

are

backed

by

the

full

faith

and

credit

of

the

U.S.

government.

The

ratings

of

U.S.

Treasury

securities

are

derived

from

the

ratings

on

the

U.S.

government.

BOND

PORTFOLIO

PROFILE

Periods

Ended

6/30/22

12/31/22

Weighted

Average

Effective

Duration

(years)

6.2‌

5.8‌

Weighted

Average

Maturity

(years)

8.1‌

8.2‌

Credit

Quality

Diversification*

U.S.

Government

Agencies**

26.0‌%

24.9‌%

U.S.

Treasuries***

21.1‌ 

23.4‌ 

AAA

5.5‌ 

5.1‌ 

AA

6.2‌ 

5.9‌ 

A

13.4‌ 

13.1‌ 

BBB

14.4‌ 

13.2‌ 

BB

and

Below

13.1‌ 

14.1‌ 

Not

Rated

0.3‌ 

0.3‌ 

Total

100.0‌%

100.0‌%

T.

ROWE

PRICE

Balanced

Fund

7

The

Fed

has

signaled

a

potential

shift

to

a

more

moderate

pace

of

tightening

but

remains

committed

to

taming

inflation,

particularly

wage

inflation,

which

it

sees

as

a

key

driver

of

persistent

inflation.

Even

taking

into

account

this

more

moderate

pace,

we

expect

the

Fed’s

benchmark

interest

rate

to

reach

5%

by

early

2023

as

inflation

will

likely

settle

above

the

Fed’s

2%

long-term

inflation

target.

Equities

face

a

less

compelling

risk/reward

trade-off

as

uncertainty

around

corporate

fundamentals

suggests

limited

near-term

upside,

particularly

as

earnings

estimates

remain

elevated

against

a

slowing

growth

outlook.

Furthermore,

while

defaults

for

below

investment-grade

issuers

within

fixed

income

are

likely

to

rise

from

historically

low

levels

toward

long-term

averages,

we

believe

yields

within

the

sector

reasonably

compensate

for

the

risk.

Other

key

risks

to

global

markets

include

central

bank

missteps,

persistent

inflation,

the

potential

for

a

sharper

slowdown

in

global

growth,

geopolitical

tensions,

and

the

need

for

China

to

strike

a

balance

between

containing

the

coronavirus

and

economic

growth.

We

believe

these

headwinds

should

peak

and

subsequently

ease

in

the

latter

half

of

2023

and

potentially

provide

a

more

constructive

environment.

We

continue

to

evaluate

long‐term

valuations

and

early

indications

of

stabilization

or

improvement

in

macroeconomic

conditions

as

we

assess

where

there

may

be

opportunities

to

add

to

equities

and

other

risk

assets.

The

elevated

levels

of

volatility

and

uncertainty

in

global

markets

underscore

the

value

of

our

thoughtful

strategic

investing

approach.

Given

the

uncertain

impact

of

the

forces

driving

global

financial

markets,

we

believe

that

the

Balanced

Fund’s

broad

diversification

and

the

strength

of

T. Rowe

Price’s

fundamental

research

platform

should

benefit

our

investors

over

time

across

a

range

of

market

and

economic

environments.

The

views

expressed

reflect

the

opinions

of

T.

Rowe

Price

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic,

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

T.

ROWE

PRICE

Balanced

Fund

8

RISKS

OF

INVESTING

As

with

all

stock

mutual

funds,

the

fund’s

share

price

can

fall

because

of

weakness

in

the

stock

market,

a

particular

industry,

or

specific

holdings.

Stock

markets

can

decline

for

many

reasons,

including

adverse

political

or

economic

developments,

changes

in

investor

psychology,

or

heavy

institutional

selling.

The

prospects

for

an

industry

or

company

may

deteriorate

because

of

a

variety

of

factors,

including

disappointing

earnings

or

changes

in

the

competitive

environment.

In

addition,

the

investment

manager’s

assessment

of

companies

held

in

a

fund

may

prove

incorrect,

resulting

in

losses

or

poor

performance

even

in

rising

markets.

Funds

that

invest

overseas

generally

carry

more

risk

than

funds

that

invest

strictly

in

U.S.

assets.

Risks

can

result

from

varying

stages

of

economic

and

political

development;

differing

regulatory

environments,

trading

days,

and

accounting

standards;

currency

fluctuations;

and

higher

transaction

costs

of

non-U.S.

markets.

Investments

outside

the

United

States

could

be

subject

to

governmental

actions

such

as

capital

or

currency

controls,

nationalization

of

a

company

or

industry,

expropriation

of

assets,

or

imposition

of

high

taxes.

Funds

that

invest

in

bonds

are

subject

to

interest

rate

risk,

the

decline

in

bond

prices

that

usually

accompanies

a

rise

in

interest

rates.

Longer-maturity

bonds

typically

decline

more

than

those

with

shorter

maturities.

Funds

that

invest

in

bonds

are

also

subject

to

credit

risk,

the

chance

that

any

fund

holding

could

have

its

credit

rating

downgraded

or

that

a

bond

issuer

will

default

(fail

to

make

timely

payments

of

interest

or

principal),

potentially

reducing

the

fund’s

income

level

and

share

price.

For

a

thorough

discussion

of

risks,

please

see

the

fund’s

prospectus.

BENCHMARK

INFORMATION

Combined

index

portfolio:

An

unmanaged

portfolio

of

45.5%

domestic

stocks

(S&P

500

Index),

19.5%

international

stocks

(MSCI

EAFE

Index

Net),

and

35.0%

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index).

Note:

Bloomberg

®

and Bloomberg

U.S.

Aggregate

Bond

Index

are

service

marks

of

Bloomberg

Finance

L.P.

and

its

affiliates,

including

Bloomberg

Index

Services

Limited

(“BISL”),

the

administrator

of

the

index

(collectively,

“Bloomberg”)

and

have

been

licensed

for

use

for

certain

purposes

by

T.

Rowe

Price.

Bloomberg

is

not

affiliated

with

T.

Rowe

Price,

and

Bloomberg

does

not

approve,

endorse,

review,

or

recommend

its

products.

Bloomberg

does

not

guarantee

the

timeliness,

accurateness,

or

completeness

of

any

data

or

information

relating

to

its

products. 

T.

ROWE

PRICE

Balanced

Fund

9

Note:

Portions

of

the

mutual

fund

information

contained

in

this

report

was

supplied

by

Lipper,

a

Refinitiv

Company,

subject

to

the

following:

Copyright

2023

©

Refinitiv.

All

rights

reserved.

Any

copying,

republication

or

redistribution

of

Lipper

content

is

expressly

prohibited

without

the

prior

written

consent

of

Lipper.

Lipper

shall

not

be

liable

for

any

errors

or

delays

in

the

content,

or

for

any

actions

taken

in

reliance

thereon.

Note:

©2023

Morningstar,

Inc.

All

rights

reserved.

The

information

contained

therein:

(1)

is

proprietary

to

Morningstar

and/or

its

content

providers;

(2)

may

not

be

copied

or

distributed;

and

(3)

is

not

warranted

to

be

accurate,

complete,

or

timely.

Neither

Morningstar

nor

its

content

providers

are

responsible

for

any

damages

or

losses

arising

from

any

use

of

this

information.

Past

performance

is

no

guarantee

of

future

results.

Note:

MSCI

and

its

affiliates

and

third-party

sources

and

providers

(collectively,

“MSCI”)

makes

no

express

or

implied

warranties

or

representations

and

shall

have

no

liability

whatsoever

with

respect

to

any

MSCI

data

contained

herein.

The

MSCI

data

may

not

be

further

redistributed

or

used

as

a

basis

for

other

indices

or

any

securities

or

financial

products.

This

report

is

not

approved,

reviewed,

or

produced

by

MSCI.

Historical

MSCI

data

and

analysis

should

not

be

taken

as

an

indication

or

guarantee

of

any

future

performance

analysis,

forecast

or

prediction.

None

of

the

MSCI

data

is

intended

to

constitute

investment

advice

or

a

recommendation

to

make

(or

refrain

from

making)

any

kind

of

investment

decision

and

may

not

be

relied

on

as

such.

Note:

The

S&P

500

Index

is

a

product

of

S&P

Dow

Jones

Indices

LLC,

a

division

of

S&P

Global,

or

its

affiliates

(“SPDJI”)

and

has

been

licensed

for

use

by

T.

Rowe

Price.

Standard

&  Poor’s

®

and

S&P

®

 are

registered

trademarks of

Standard

&

Poor’s

Financial

Services

LLC,

a

division

of

S&P

Global (“S&P”);

Dow

Jones

®

is

a

registered

trademark

of

Dow

Jones

Trademark

Holdings

LLC

(“Dow

Jones”);

T.

Rowe

Price

is

not

sponsored,

endorsed,

sold

or

promoted

by

SPDJI,

Dow

Jones,

S&P,

or

their

respective

affiliates,

and

none

of

such

parties

make

any

representation

regarding

the

advisability

of

investing

in

such

product(s)

nor

do

they

have

any

liability

for

any

errors,

omissions,

or

interruptions

of

the

S&P

500

Index.

BENCHMARK

INFORMATION

(continued)

T.

ROWE

PRICE

Balanced

Fund

10

T.

Rowe

Price

Real

Assets

Fund

-

I

Class

3.3‌%

Microsoft

2.6‌ 

Apple

2.2‌ 

Alphabet

1.8‌ 

Amazon.com

1.2‌ 

UnitedHealth

Group

1.0‌ 

Elevance

Health

0.7‌ 

Visa

0.7‌ 

Johnson

&

Johnson

0.7‌ 

ExxonMobil

0.6‌ 

Total

14.8‌%

U.S.

Treasuries

8.1‌%

T.

Rowe

Price

Institutional

High

Yield

Fund

5.4‌ 

Federal

National

Mortgage

Association

-

Mortgages

4.2‌ 

Government

National

Mortgage

Association

2.3‌ 

Federal

Home

Loan

Mortgage

Corporation

-

Mortgages

2.0‌ 

Morgan

Stanley

0.2‌ 

Bank

of

America

0.2‌ 

Banco

Santander

0.2‌ 

JPMorgan

Chase

0.2‌ 

Wells

Fargo

0.2‌ 

Total

23.0‌%

PORTFOLIO

HIGHLIGHTS

LARGEST

HOLDINGS

Stocks

Percent

of

Net

Assets

12/31/22

Bonds

Percent

of

Net

Assets

12/31/22

Note:

The

information

shown

does

not

reflect

any

exchange-traded

funds

(ETFs),

cash

reserves,

or

collateral

for

securities

lending

that

may

be

held

in

the

portfolio.

T.

ROWE

PRICE

Balanced

Fund

11

GROWTH

OF

$10,000 

This

chart

shows

the

value

of

a

hypothetical

$10,000

investment

in

the

fund

over

the

past

10

fiscal

year

periods

or

since

inception

(for funds

lacking

10-year

records).

The

result

is

compared

with

benchmarks,

which

include

a

broad-based

market

index

and

may

also

include

a

peer

group

average

or

index.

Market

indexes

do

not

include

expenses,

which

are

deducted

from

fund returns

as

well

as

mutual fund

averages

and

indexes.

BALANCED

FUND 

Note:

Performance

for

the

I

Class share

will

vary

due

to

its differing

fee

structure.

See

the

Average

Annual

Compound

Total

Return

table. 

T.

ROWE

PRICE

Balanced

Fund

12

AVERAGE

ANNUAL

COMPOUND

TOTAL

RETURN

Periods

Ended

12/31/22

1

Year

5

Years

10

Years

Since

Inception

Inception

Date

Balanced

Fund

–

.

-17.26‌%

4.29‌%

6.97‌%

–‌

–

Balanced

Fund–

.

I  Class

-17.12‌

4.42‌

–‌

6.52‌%

12/17/15

The

fund’s

performance

information

represents

only

past

performance

and

is

not

necessarily

an

indication

of

future

results.

Current

performance

may

be

lower

or

higher

than

the

performance

data

cited.

Share

price,

principal

value,

and

return

will

vary,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

For

the

most

recent

month-end

performance,

please

visit

our

website

(troweprice.com)

or

contact

a

T.

Rowe

Price

representative

at

1

-

800

-

225

-

5132

or,

for

0.02

I

Class

shares,

1-800-638-8790.

This

table

shows

how

the

fund

would

have

performed

each

year

if

its

actual

(or

cumulative)

returns

for

the

periods

shown

had

been

earned

at

a

constant

rate.

Average

annual

total

return

figures

include

changes

in

principal

value,

reinvested

dividends,

and

capital

gain

distributions.

Returns

do

not

reflect

taxes

that

the

shareholder

may

pay

on

fund

distributions

or

the

redemption

of

fund

shares.

When

assessing

performance,

investors

should

consider

both

short-

and

long-term

returns.

T.

ROWE

PRICE

Balanced

Fund

13

EXPENSE

RATIO

FUND

EXPENSE

EXAMPLE

As

a

mutual

fund

shareholder,

you

may

incur

two

types

of

costs:

(1)

transaction

costs,

such

as

redemption

fees

or

sales

loads,

and

(2)

ongoing

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

fund

expenses.

The

following

example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

the

fund

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

The

example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

most

recent

six-month

period

and

held

for

the

entire

period.

Please

note

that

the

fund

has

two

share

classes:

The

original

share

class

(Investor

Class)

charges

no

distribution

and

service

(12b-1)

fee,

and

the

I

Class

shares

are

also

available

to

institutionally

oriented

clients

and

impose

no

12b-1

or

administrative

fee

payment.

Each

share

class

is

presented

separately

in

the

table.

Actual

Expenses

The

first

line

of

the

following

table

(Actual)

provides

information

about

actual

account

values

and

expenses

based

on

the

fund’s

actual

returns.

You

may

use

the

information

on

this

line,

together

with

your

account

balance,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

on

the

first

line

under

the

heading

“Expenses

Paid

During

Period”

to

estimate

the

expenses

you

paid

on

your

account

during

this

period.

Hypothetical

Example

for

Comparison

Purposes

The

information

on

the

second

line

of

the

table

(Hypothetical)

is

based

on

hypothetical

account

values

and

expenses

derived

from

the

fund’s

actual

expense

ratio

and

an

assumed

5%

per

year

rate

of

return

before

expenses

(not

the

fund’s

actual

return).

You

may

compare

the

ongoing

costs

of

investing

in

the

fund

with

other

funds

by

contrasting

this

5%

hypothetical

example

and

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

the

other

funds.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

Balanced

Fund

0.61‌%

Balanced

Fund–I

Class

0.49‌ 

The

expense

ratio

shown

is

as

of

the

fund’s

most

recent

prospectus.

This

number

may

vary

from

the

expense

ratio

shown

elsewhere

in

this

report

because

it

is

based

on

a

different

time

period

and,

if

applicable,

includes

acquired

fund

fees

and

expenses

but

does

not

include

fee

or

expense

waivers.

T.

ROWE

PRICE

Balanced

Fund

14

Note:

T.

Rowe

Price

charges

an

annual

account

service

fee

of

$20,

generally

for

accounts

with

less

than

$10,000.

The

fee

is

waived

for

any

investor

whose

T.

Rowe

Price

mutual

fund

accounts

total

$50,000

or

more;

accounts

electing

to

receive

electronic

delivery

of

account

statements,

transaction

confirmations,

prospectuses,

and

shareholder

reports;

or

accounts

of

an

investor

who

is

a

T.

Rowe

Price

Personal

Services

or

Enhanced

Personal

Services

client

(enrollment

in

these

programs

generally

requires

T.

Rowe

Price

assets

of

at

least

$250,000).

This

fee

is

not

included

in

the

accompanying

table.

If

you

are

subject

to

the

fee,

keep

it

in

mind

when

you

are

estimating

the

ongoing

expenses

of

investing

in

the

fund

and

when

comparing

the

expenses

of

this

fund

with

other

funds.

You

should

also

be

aware

that

the

expenses

shown

in

the

table

highlight

only

your

ongoing

costs

and

do

not

reflect

any

transaction

costs,

such

as

redemption

fees

or

sales

loads.

Therefore,

the

second

line

of

the

table

is

useful

in

comparing

ongoing

costs

only

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

To

the

extent

a

fund

charges

transaction

costs,

however,

the

total

cost

of

owning

that

fund

is

higher.

BALANCED

FUND

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period*

7/1/22

to

12/31/22

Investor

Class

Actual

$1,000.00

$1,004.00

$2.88

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,022.33

  2.91

I

Class

Actual

  1,000.00

  1,004.90

  2.17

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,023.04

  2.19

*

Expenses

are

equal

to

the

fund’s

annualized

expense

ratio

for

the

6-month

period,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

the

number

of

days

in

the

most

recent

fiscal

half

year

(184),

and

divided

by

the

days

in

the

year

(365)

to

reflect

the

half-year

period.

The

annualized

expense

ratio

of

the

1

Investor

Class

was

0.57%,

and

the

2

I Class

was

0.43%.

FUND

EXPENSE

EXAMPLE

(CONTINUED)

T.

ROWE

PRICE

Balanced

Fund

Financial

Highlights

15

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Investor

Class

..

Year

..

..

Ended

.

12/31/22

12/31/21

12/31/20

12/31/19

12/31/18

NET

ASSET

VALUE

Beginning

of

period

$

28.20‌

$

27.24‌

$

24.94‌

$

21.39‌

$

24.33‌

Investment

activities

Net

investment

income

(1)(2)

0.43‌

0.37‌

0.40‌

0.48‌

0.51‌

Net

realized

and

unrealized

gain/

loss

(5.29‌)

3.22‌

3.15‌

3.92‌

(1.65‌)

Total

from

investment

activities

(4.86‌)

3.59‌

3.55‌

4.40‌

(1.14‌)

Distributions

Net

investment

income

(0.44‌)

(0.38‌)

(0.41‌)

(0.50‌)

(0.50‌)

Net

realized

gain

(0.68‌)

(2.25‌)

(0.84‌)

(0.35‌)

(1.30‌)

Total

distributions

(1.12‌)

(2.63‌)

(1.25‌)

(0.85‌)

(1.80‌)

NET

ASSET

VALUE

End

of

period

$

22.22‌

$

28.20‌

$

27.24‌

$

24.94‌

$

21.39‌

Ratios/Supplemental

Data

Total

return

(2)(3)

(17.26‌)%

13.36‌%

14.57‌%

20.74‌%

(4.92‌)%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

0.61‌%

0.57‌%

0.58‌%

0.58‌%

0.58‌%

Net

expenses

after

waivers/

payments

by

Price

Associates

0.57‌%

0.53‌%

0.55‌%

0.55‌%

0.55‌%

Net

investment

income

1.74‌%

1.27‌%

1.63‌%

2.03‌%

2.10‌%

Portfolio

turnover

rate

97.7‌%

91.9‌%

75.7‌%

53.3‌%

68.2‌%

Net

assets,

end

of

period

(in

millions)

$2,318

$4,224

$4,087

$3,893

$3,400

0‌%

0‌%

0‌%

0‌%

0‌%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

7

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

T.

ROWE

PRICE

Balanced

Fund

Financial

Highlights

16

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

I

Class

..

Year

..

..

Ended

.

12/31/22

12/31/21

12/31/20

12/31/19

12/31/18

NET

ASSET

VALUE

Beginning

of

period

$

28.20‌

$

27.23‌

$

24.94‌

$

21.39‌

$

24.34‌

Investment

activities

Net

investment

income

(1)(2)

0.49‌

0.41‌

0.43‌

0.50‌

0.55‌

Net

realized

and

unrealized

gain/

loss

(5.31‌)

3.22‌

3.14‌

3.94‌

(1.67‌)

Total

from

investment

activities

(4.82‌)

3.63‌

3.57‌

4.44‌

(1.12‌)

Distributions

Net

investment

income

(0.49‌)

(0.41‌)

(0.44‌)

(0.54‌)

(0.53‌)

Net

realized

gain

(0.68‌)

(2.25‌)

(0.84‌)

(0.35‌)

(1.30‌)

Total

distributions

(1.17‌)

(2.66‌)

(1.28‌)

(0.89‌)

(1.83‌)

NET

ASSET

VALUE

End

of

period

$

22.21‌

$

28.20‌

$

27.23‌

$

24.94‌

$

21.39‌

Ratios/Supplemental

Data

Total

return

(2)(3)

(17.12‌)%

13.51‌%

14.67‌%

20.94‌%

(4.85‌)%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

0.47‌%

0.45‌%

0.46‌%

0.46‌%

0.46‌%

Net

expenses

after

waivers/

payments

by

Price

Associates

0.43‌%

0.41‌%

0.43‌%

0.43‌%

0.43‌%

Net

investment

income

2.02‌%

1.39‌%

1.74‌%

2.11‌%

2.26‌%

Portfolio

turnover

rate

97.7‌%

91.9‌%

75.7‌%

53.3‌%

68.2‌%

Net

assets,

end

of

period

(in

thousands)

$1,668,770

$1,173,380

$870,716

$734,319

$413,411

0‌%

0‌%

0‌%

0‌%

0‌%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

7

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

T.

ROWE

PRICE

Balanced

Fund

December

31,

2022

17

Portfolio

of

Investments

‡

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

ASSET-BACKED

SECURITIES

0.9%

AmeriCredit

Automobile

Receivables

Trust

Series 2020-1,

Class

C

1.59%,

10/20/25 

1,460,000‌

1,413‌

AmeriCredit

Automobile

Receivables

Trust

Series 2021-2,

Class

D

1.29%,

6/18/27 

2,100,000‌

1,862‌

Avis

Budget

Rental

Car

Funding

AESOP

Series 2019-2A,

Class

B

3.55%,

9/22/25  (1)

1,165,000‌

1,110‌

BRE

Grand

Islander

Timeshare

Issuer

Series 2019-A,

Class

A

3.28%,

9/26/33  (1)

292,325‌

275‌

Carlyle

U.S.

Series 2019-4A,

Class

A11R,

CLO,

FRN

3M

TSFR

+

1.32%,

5.184%,

4/15/35  (1)

2,195,000‌

2,126‌

Carmax

Auto

Owner

Trust

Series 2021-1,

Class

D

1.28%,

7/15/27 

1,205,000‌

1,073‌

Carvana

Auto

Receivables

Trust

Series 2021-P4,

Class

C

2.33%,

2/10/28 

1,715,000‌

1,410‌

CIFC

Funding

Series 2021-3A,

Class

A,

CLO,

FRN

3M

USD

LIBOR

+

1.14%,

5.219%,

7/15/36  (1)

1,380,000‌

1,339‌

CNH

Equipment

Trust

Series 2019-C,

Class

B

2.35%,

4/15/27 

2,575,000‌

2,508‌

Driven

Brands

Funding

Series 2020-1A,

Class

A2

3.786%,

7/20/50  (1)

659,813‌

566‌

Driven

Brands

Funding

Series 2020-2A,

Class

A2

3.237%,

1/20/51  (1)

1,218,300‌

1,007‌

Driven

Brands

Funding

Series 2021-1A,

Class

A2

2.791%,

10/20/51  (1)

1,524,600‌

1,209‌

Dryden

Series 2020-77A,

Class

AR,

CLO,

FRN

3M

USD

LIBOR

+

1.12%,

5.795%,

5/20/34  (1)

1,935,000‌

1,879‌

Elara

HGV

Timeshare

Issuer

Series 2017-A,

Class

A

2.69%,

3/25/30  (1)

160,976‌

154‌

Exeter

Automobile

Receivables

Trust

Series 2021-2A,

Class

C

0.98%,

6/15/26 

895,000‌

860‌

T.

ROWE

PRICE

Balanced

Fund

18

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Exeter

Automobile

Receivables

Trust

Series 2022-2A,

Class

C

3.85%,

7/17/28 

915,000‌

872‌

Ford

Credit

Auto

Owner

Trust

Series 2020-2,

Class

C

1.74%,

4/15/33  (1)

1,665,000‌

1,439‌

Ford

Credit

Floorplan

Master

Owner

Trust

Series 2020-2,

Class

B

1.32%,

9/15/27 

1,275,000‌

1,134‌

GM

Financial

Consumer

Automobile

Receivables

Trust

Series 2020-3,

Class

D

1.91%,

9/16/27 

1,355,000‌

1,288‌

Hardee's

Funding

Series 2018-1A,

Class

A2II

4.959%,

6/20/48  (1)

1,900,638‌

1,785‌

JPMorgan

Chase

Bank

Series 2021-2,

Class

C

0.969%,

12/26/28  (1)

338,355‌

323‌

Madison

Park

Funding

XXXIII

Series 2019-33A,

Class

AR,

CLO,

FRN

3M

TSFR

+

1.29%,

5.154%,

10/15/32  (1)

1,205,000‌

1,188‌

MVW

Series 2019-2A,

Class

A

2.22%,

10/20/38  (1)

865,824‌

817‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-CA,

Class

A2

3.13%,

2/15/68  (1)

791,630‌

747‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-FA,

Class

A2

2.60%,

8/15/68  (1)

852,050‌

788‌

Navient

Private

Education

Refi

Loan

Trust

Series 2019-GA,

Class

A

2.40%,

10/15/68  (1)

938,726‌

860‌

Navient

Private

Education

Refi

Loan

Trust

Series 2020-GA,

Class

A

1.17%,

9/16/69  (1)

412,303‌

366‌

Navient

Private

Education

Refi

Loan

Trust

Series 2021-A,

Class

A

0.84%,

5/15/69  (1)

427,247‌

369‌

Santander

Bank

Auto

Credit-Linked

Notes

Series 2022-C,

Class

B

6.451%,

12/15/32  (1)

2,285,000‌

2,285‌

ServiceMaster

Funding

Series 2021-1,

Class

A2I

2.865%,

7/30/51  (1)

1,614,563‌

1,268‌

SMB

Private

Education

Loan

Trust

Series 2018-B,

Class

A2A

3.60%,

1/15/37  (1)

576,402‌

552‌

T.

ROWE

PRICE

Balanced

Fund

19

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

SMB

Private

Education

Loan

Trust

Series 2020-B,

Class

A1A

1.29%,

7/15/53  (1)

1,100,985‌

971‌

SMB

Private

Education

Loan

Trust

Series 2021-A,

Class

APT1

1.07%,

1/15/53  (1)

2,150,126‌

1,845‌

Total

Asset-Backed

Securities

(Cost

$41,176)

37,688‌

BOND

MUTUAL

FUNDS

5.4%

T.

Rowe

Price

Inflation

Protected

Bond

Fund

-

I

Class,

5.89%  (2)(3)

1,359‌

14‌

T.

Rowe

Price

Institutional

High

Yield

Fund

-

Institutional

Class,

8.21%  (2)(3)

29,141,480‌

214,481‌

T.

Rowe

Price

Limited

Duration

Inflation

Focused

Bond

Fund

-

I

Class,

5.66%  (2)(3)

23,156‌

108‌

Total

Bond

Mutual

Funds

(Cost

$250,948)

214,603‌

COMMON

STOCKS

60.7%

COMMUNICATION

SERVICES

4.3%

Diversified

Telecommunication

Services

0.7%

KT

(KRW)  (4)

108,008‌

2,891‌

Nippon

Telegraph

&

Telephone

(JPY) 

497,500‌

14,188‌

Verizon

Communications 

237,456‌

9,356‌

26,435‌

Entertainment

0.6%

Activision

Blizzard 

46,291‌

3,544‌

Netflix  (4)

27,956‌

8,244‌

Sea,

ADR  (4)

42,889‌

2,231‌

Walt

Disney  (4)

110,345‌

9,587‌

23,606‌

Interactive

Media

&

Services

2.3%

Alphabet,

Class

A  (4)

148,679‌

13,118‌

Alphabet,

Class

C  (4)

655,293‌

58,144‌

Meta

Platforms,

Class

A  (4)

114,731‌

13,807‌

NAVER

(KRW) 

14,466‌

2,057‌

Tencent

Holdings

(HKD) 

89,600‌

3,799‌

Z

Holdings

(JPY) 

875,100‌

2,186‌

93,111‌

Media

0.3%

Comcast,

Class

A 

26,180‌

916‌

CyberAgent

(JPY) 

358,400‌

3,191‌

Stroeer

(EUR) 

32,867‌

1,529‌

T.

ROWE

PRICE

Balanced

Fund

20

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

WPP

(GBP) 

513,879‌

5,077‌

10,713‌

Wireless

Telecommunication

Services

0.4%

SoftBank

Group

(JPY) 

52,300‌

2,212‌

T-Mobile

U.S.  (4)

78,224‌

10,951‌

Vodafone

Group,

ADR 

349,968‌

3,542‌

16,705‌

Total

Communication

Services

170,570‌

CONSUMER

DISCRETIONARY

5.9%

Auto

Components

0.4%

Aptiv (4)

2,035‌

189‌

Autoliv,

SDR

(SEK) 

41,048‌

3,139‌

Denso

(JPY) 

79,300‌

3,889‌

Magna

International 

104,042‌

5,845‌

Mobileye

Global,

Class

A  (4)

9,002‌

316‌

Stanley

Electric

(JPY) 

106,300‌

2,011‌

Sumitomo

Rubber

Industries

(JPY)  (5)

119,700‌

1,040‌

16,429‌

Automobiles

0.6%

Honda

Motor

(JPY) 

68,700‌

1,567‌

Suzuki

Motor

(JPY) 

86,100‌

2,758‌

Tesla  (4)

82,927‌

10,215‌

Toyota

Motor

(JPY) 

586,200‌

7,997‌

22,537‌

Diversified

Consumer

Services

0.0%

Bright

Horizons

Family

Solutions  (4)

10,400‌

656‌

656‌

Hotels,

Restaurants

&

Leisure

1.1%

Booking

Holdings  (4)

2,921‌

5,887‌

Chipotle

Mexican

Grill  (4)

4,860‌

6,743‌

Compass

Group

(GBP) 

297,937‌

6,880‌

Hilton

Worldwide

Holdings 

10,879‌

1,375‌

Las

Vegas

Sands  (4)

22,246‌

1,069‌

Marriott

International,

Class

A 

10,206‌

1,520‌

McDonald's 

52,719‌

13,893‌

MGM

Resorts

International 

24,429‌

819‌

Starbucks 

27,160‌

2,694‌

Wynn

Resorts  (4)

12,275‌

1,012‌

Yum!

Brands 

20,637‌

2,643‌

44,535‌

Household

Durables

0.3%

NVR (4)

216‌

997‌

T.

ROWE

PRICE

Balanced

Fund

21

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Panasonic

Holdings

(JPY) 

432,200‌

3,617‌

Persimmon

(GBP) 

163,565‌

2,398‌

Sony

Group

(JPY) 

81,500‌

6,212‌

13,224‌

Internet

&

Direct

Marketing

Retail

1.4%

Alibaba

Group

Holding,

ADR  (4)

8,823‌

777‌

Amazon.com  (4)

580,360‌

48,750‌

ASOS

(GBP)  (4)

121,240‌

745‌

DoorDash,

Class

A  (4)

20,365‌

994‌

Zalando

(EUR)  (4)

76,843‌

2,705‌

53,971‌

Multiline

Retail

0.4%

Dollar

General 

49,324‌

12,146‌

Dollar

Tree  (4)

6,550‌

926‌

Next

(GBP) 

53,468‌

3,747‌

16,819‌

Specialty

Retail

1.1%

AutoZone (4)

679‌

1,674‌

Burlington

Stores  (4)

6,441‌

1,306‌

Home

Depot 

39,223‌

12,389‌

Kingfisher

(GBP) 

1,642,632‌

4,667‌

Lowe's 

7,803‌

1,555‌

O'Reilly

Automotive  (4)

2,638‌

2,226‌

Ross

Stores 

94,518‌

10,971‌

TJX 

71,594‌

5,699‌

Ulta

Beauty  (4)

9,295‌

4,360‌

44,847‌

Textiles,

Apparel

&

Luxury

Goods

0.6%

Dr.

Martens

(GBP) 

464,576‌

1,055‌

Kering

(EUR) 

8,184‌

4,165‌

Lululemon

Athletica  (4)

11,443‌

3,666‌

Moncler

(EUR) 

80,997‌

4,304‌

NIKE,

Class

B 

75,594‌

8,845‌

Samsonite

International

(HKD)  (4)

847,500‌

2,225‌

24,260‌

Total

Consumer

Discretionary

237,278‌

CONSUMER

STAPLES

4.4%

Beverages

0.9%

Coca-Cola 

124,161‌

7,898‌

Constellation

Brands,

Class

A 

13,299‌

3,082‌

Diageo

(GBP) 

155,362‌

6,800‌

Heineken

(EUR) 

27,991‌

2,637‌

Keurig

Dr

Pepper 

136,374‌

4,863‌

T.

ROWE

PRICE

Balanced

Fund

22

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Kirin

Holdings

(JPY)  (5)

167,500‌

2,553‌

Monster

Beverage  (4)

23,077‌

2,343‌

PepsiCo 

24,320‌

4,394‌

34,570‌

Food

&

Staples

Retailing

0.7%

Costco

Wholesale 

9,035‌

4,124‌

Seven

&

i

Holdings

(JPY) 

163,500‌

7,007‌

Walmart 

101,946‌

14,455‌

Welcia

Holdings

(JPY) 

75,200‌

1,753‌

27,339‌

Food

Products

1.3%

Barry

Callebaut

(CHF) 

1,727‌

3,410‌

Conagra

Brands 

32,783‌

1,269‌

Darling

Ingredients  (4)

6,767‌

424‌

Kraft

Heinz 

165,721‌

6,746‌

Mondelez

International,

Class

A 

190,711‌

12,711‌

Nestle

(CHF) 

203,543‌

23,511‌

Wilmar

International

(SGD) 

1,865,300‌

5,811‌

53,882‌

Household

Products

0.5%

Colgate-Palmolive 

5,000‌

394‌

Kimberly-Clark 

23,275‌

3,159‌

Procter

&

Gamble 

110,239‌

16,708‌

20,261‌

Personal

Products

0.5%

Estee

Lauder,

Class

A 

6,997‌

1,736‌

L'Oreal

(EUR) 

18,750‌

6,714‌

Unilever

(GBP) 

253,636‌

12,806‌

21,256‌

Tobacco

0.5%

Altria

Group 

36,088‌

1,650‌

Philip

Morris

International 

179,056‌

18,122‌

19,772‌

Total

Consumer

Staples

177,080‌

ENERGY

2.5%

Energy

Equipment

&

Services

0.2%

Halliburton 

70,069‌

2,757‌

Worley

(AUD) 

445,214‌

4,542‌

7,299‌

Oil,

Gas

&

Consumable

Fuels

2.3%

Chevron 

86,160‌

15,465‌

ConocoPhillips 

53,571‌

6,321‌

T.

ROWE

PRICE

Balanced

Fund

23

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

EOG

Resources 

17,964‌

2,327‌

Equinor

(NOK) 

319,009‌

11,465‌

Exxon

Mobil 

225,983‌

24,926‌

Hess 

11,482‌

1,628‌

Kinder

Morgan 

307,900‌

5,567‌

Marathon

Petroleum 

16,559‌

1,927‌

Pioneer

Natural

Resources 

4,324‌

988‌

Shell,

ADR 

93,482‌

5,324‌

TotalEnergies

(EUR) 

191,876‌

12,045‌

TotalEnergies,

ADR 

27,872‌

1,730‌

Woodside

Energy

Group

(GBP) 

34,694‌

835‌

90,548‌

Total

Energy

97,847‌

FINANCIALS

9.8%

Banks

3.6%

ANZ

Group

Holdings

(AUD) 

234,434‌

3,776‌

Bank

of

America 

650,161‌

21,533‌

BNP

Paribas

(EUR) 

83,543‌

4,757‌

Citigroup 

87,700‌

3,967‌

Citizens

Financial

Group 

8,500‌

335‌

Close

Brothers

Group

(GBP) 

83,733‌

1,053‌

DBS

Group

Holdings

(SGD) 

138,600‌

3,508‌

DNB

Bank

(NOK) 

416,648‌

8,229‌

Erste

Group

Bank

(EUR) 

64,870‌

2,076‌

Fifth

Third

Bancorp 

51,847‌

1,701‌

Huntington

Bancshares 

172,072‌

2,426‌

ING

Groep

(EUR) 

735,423‌

8,958‌

Intesa

Sanpaolo

(EUR) 

1,113,741‌

2,467‌

JPMorgan

Chase 

160,834‌

21,568‌

Lloyds

Banking

Group

(GBP) 

6,924,380‌

3,779‌

Mitsubishi

UFJ

Financial

Group

(JPY)  (5)

656,600‌

4,408‌

National

Bank

of

Canada

(CAD)  (5)

104,702‌

7,055‌

Signature

Bank 

6,212‌

716‌

Standard

Chartered

(GBP) 

322,891‌

2,408‌

Sumitomo

Mitsui

Trust

Holdings

(JPY) 

78,754‌

2,748‌

SVB

Financial

Group  (4)

2,700‌

621‌

Svenska

Handelsbanken,

Class

A

(SEK) 

527,434‌

5,310‌

U.S.

Bancorp 

176,400‌

7,693‌

United

Overseas

Bank

(SGD) 

290,000‌

6,643‌

Wells

Fargo 

355,291‌

14,670‌

142,405‌

Capital

Markets

1.3%

Ameriprise

Financial 

3,100‌

965‌

Ares

Management,

Class

A 

4,700‌

322‌

T.

ROWE

PRICE

Balanced

Fund

24

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Bank

of

New

York

Mellon 

9,202‌

419‌

BlackRock 

1,700‌

1,205‌

Blue

Owl

Capital 

25,900‌

275‌

Bridgepoint

Group

(GBP) 

642,572‌

1,484‌

Charles

Schwab 

98,648‌

8,213‌

CME

Group 

7,111‌

1,196‌

Goldman

Sachs

Group 

39,418‌

13,535‌

Intercontinental

Exchange 

17,736‌

1,819‌

Invesco 

19,190‌

345‌

Julius

Baer

Group

(CHF) 

86,176‌

5,015‌

Macquarie

Group

(AUD) 

34,249‌

3,866‌

Morgan

Stanley 

15,031‌

1,278‌

MSCI 

4,499‌

2,093‌

S&P

Global 

19,740‌

6,612‌

XP,

Class

A  (4)

97,514‌

1,496‌

50,138‌

Consumer

Finance

0.1%

American

Express 

13,313‌

1,967‌

Capital

One

Financial 

3,600‌

335‌

2,302‌

Diversified

Financial

Services

1.0%

Apollo

Global

Management 

11,534‌

736‌

Berkshire

Hathaway,

Class

B  (4)

65,080‌

20,103‌

Challenger

(AUD) 

365,840‌

1,881‌

Corebridge

Financial 

141,883‌

2,846‌

Element

Fleet

Management

(CAD)  (5)

471,768‌

6,428‌

Equitable

Holdings 

53,094‌

1,524‌

Housing

Development

Finance

(INR) 

129,060‌

4,110‌

Mitsubishi

HC

Capital

(JPY) 

417,500‌

2,053‌

Voya

Financial 

4,189‌

258‌

39,939‌

Insurance

3.8%

AIA

Group

(HKD) 

218,400‌

2,412‌

Allstate 

34,599‌

4,692‌

American

International

Group 

105,469‌

6,670‌

Assurant 

7,750‌

969‌

AXA

(EUR) 

405,097‌

11,284‌

Chubb 

95,240‌

21,010‌

Definity

Financial

(CAD) 

50,731‌

1,442‌

Direct

Line

Insurance

Group

(GBP) 

747,975‌

1,994‌

Hartford

Financial

Services

Group 

85,668‌

6,496‌

Manulife

Financial

(CAD) 

207,429‌

3,700‌

Marsh

&

McLennan 

32,591‌

5,393‌

MetLife 

157,250‌

11,380‌

T.

ROWE

PRICE

Balanced

Fund

25

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Munich

Re

(EUR) 

33,424‌

10,812‌

PICC

Property

&

Casualty,

Class

H

(HKD) 

3,466,000‌

3,277‌

Ping

An

Insurance

Group,

Class

H

(HKD) 

274,500‌

1,803‌

Progressive 

77,524‌

10,056‌

RenaissanceRe

Holdings 

9,292‌

1,712‌

Sampo,

Class

A

(EUR) 

142,876‌

7,462‌

Storebrand

(NOK) 

543,459‌

4,723‌

Sun

Life

Financial

(CAD) 

154,515‌

7,172‌

Tokio

Marine

Holdings

(JPY) 

351,400‌

7,507‌

Travelers 

65,382‌

12,259‌

Zurich

Insurance

Group

(CHF) 

16,264‌

7,775‌

152,000‌

Total

Financials

386,784‌

HEALTH

CARE

10.1%

Biotechnology

0.7%

AbbVie 

81,078‌

13,103‌

Amgen 

21,220‌

5,573‌

Biogen  (4)

4,335‌

1,200‌

Genmab

(DKK)  (4)

6,185‌

2,615‌

Gilead

Sciences 

8,300‌

713‌

Moderna  (4)

10,392‌

1,867‌

Regeneron

Pharmaceuticals  (4)

2,585‌

1,865‌

Vertex

Pharmaceuticals  (4)

5,076‌

1,466‌

28,402‌

Health

Care

Equipment

&

Supplies

1.7%

Abbott

Laboratories 

20,932‌

2,298‌

Alcon

(CHF) 

31,685‌

2,174‌

Align

Technology  (4)

2,594‌

547‌

Becton

Dickinson

&

Company 

76,807‌

19,532‌

Boston

Scientific  (4)

5,600‌

259‌

Dexcom  (4)

15,979‌

1,810‌

Elekta,

Class

B

(SEK) 

401,332‌

2,421‌

EssilorLuxottica

(EUR) 

30,990‌

5,607‌

Intuitive

Surgical  (4)

47,260‌

12,540‌

Koninklijke

Philips

(EUR) 

207,779‌

3,127‌

Medtronic 

7,442‌

578‌

Siemens

Healthineers

(EUR) 

115,992‌

5,786‌

STERIS 

3,500‌

646‌

Stryker 

25,046‌

6,124‌

Teleflex 

3,691‌

921‌

Zimmer

Biomet

Holdings 

17,629‌

2,248‌

66,618‌

Health

Care

Providers

&

Services

2.7%

AmerisourceBergen 

24,697‌

4,093‌

T.

ROWE

PRICE

Balanced

Fund

26

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Centene  (4)

93,131‌

7,638‌

Cigna 

11,880‌

3,936‌

CVS

Health 

13,030‌

1,214‌

Elevance

Health 

54,387‌

27,899‌

Fresenius

(EUR) 

134,252‌

3,750‌

HCA

Healthcare 

29,451‌

7,067‌

Humana 

21,561‌

11,043‌

McKesson 

3,480‌

1,305‌

Molina

Healthcare  (4)

4,100‌

1,354‌

UnitedHealth

Group 

71,673‌

38,000‌

107,299‌

Health

Care

Technology

0.1%

GE

HealthCare

Technologies  (4)

10,445‌

610‌

Veeva

Systems,

Class

A  (4)

9,790‌

1,580‌

2,190‌

Life

Sciences

Tools

&

Services

1.0%

Agilent

Technologies 

11,915‌

1,783‌

Charles

River

Laboratories

International  (4)

1,700‌

370‌

Danaher 

61,808‌

16,405‌

Evotec

(EUR)  (4)

83,281‌

1,355‌

Illumina  (4)

1,600‌

324‌

Mettler-Toledo

International  (4)

654‌

945‌

PerkinElmer 

17,488‌

2,452‌

Thermo

Fisher

Scientific 

31,353‌

17,266‌

West

Pharmaceutical

Services 

1,300‌

306‌

41,206‌

Pharmaceuticals

3.9%

Astellas

Pharma

(JPY) 

554,700‌

8,434‌

AstraZeneca,

ADR 

332,384‌

22,536‌

Bayer

(EUR) 

119,766‌

6,164‌

Bristol-Myers

Squibb 

23,448‌

1,687‌

Eli

Lilly 

53,549‌

19,590‌

GSK,

ADR 

100,872‌

3,545‌

Ipsen

(EUR) 

14,949‌

1,608‌

Johnson

&

Johnson 

153,404‌

27,099‌

Merck 

93,368‌

10,359‌

Novartis

(CHF) 

128,801‌

11,656‌

Novo

Nordisk,

ADR 

2,400‌

325‌

Otsuka

Holdings

(JPY) 

106,600‌

3,476‌

Pfizer 

75,773‌

3,883‌

Roche

Holding

(CHF) 

43,670‌

13,723‌

Sanofi

(EUR) 

137,958‌

13,303‌

Viatris 

137,580‌

1,531‌

T.

ROWE

PRICE

Balanced

Fund

27

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Zoetis 

35,387‌

5,186‌

154,105‌

Total

Health

Care

399,820‌

INDUSTRIALS

&

BUSINESS

SERVICES

5.1%

Aerospace

&

Defense

0.5%

Boeing (4)

8,747‌

1,666‌

L3Harris

Technologies 

52,401‌

10,910‌

Northrop

Grumman 

4,626‌

2,524‌

Raytheon

Technologies 

3,500‌

353‌

Safran

(EUR) 

33,068‌

4,142‌

Textron 

14,061‌

996‌

TransDigm

Group 

2,195‌

1,382‌

21,973‌

Air

Freight

&

Logistics

0.0%

FedEx 

6,164‌

1,068‌

United

Parcel

Service,

Class

B 

3,718‌

646‌

1,714‌

Airlines

0.0%

Southwest

Airlines  (4)

24,971‌

841‌

United

Airlines

Holdings  (4)

13,610‌

513‌

1,354‌

Building

Products

0.1%

Carrier

Global 

10,700‌

441‌

Trane

Technologies 

11,851‌

1,992‌

2,433‌

Commercial

Services

&

Supplies

0.1%

Cintas 

2,564‌

1,158‌

Republic

Services 

17,265‌

2,227‌

Waste

Connections 

13,255‌

1,757‌

5,142‌

Construction

&

Engineering

0.0%

WillScot

Mobile

Mini

Holdings  (4)

23,200‌

1,048‌

1,048‌

Electrical

Equipment

1.0%

ABB

(CHF) 

230,646‌

7,030‌

AMETEK 

20,222‌

2,825‌

Eaton 

56,154‌

8,813‌

Hubbell 

10,901‌

2,558‌

Legrand

(EUR) 

65,149‌

5,224‌

Mitsubishi

Electric

(JPY) 

538,100‌

5,332‌

Prysmian

(EUR) 

148,442‌

5,516‌

T.

ROWE

PRICE

Balanced

Fund

28

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Rockwell

Automation 

4,625‌

1,191‌

38,489‌

Industrial

Conglomerates

1.5%

DCC

(GBP) 

61,620‌

3,030‌

General

Electric 

207,320‌

17,371‌

Honeywell

International 

44,863‌

9,614‌

Melrose

Industries

(GBP) 

2,612,382‌

4,209‌

Roper

Technologies 

16,827‌

7,271‌

Siemens

(EUR) 

143,858‌

19,831‌

61,326‌

Machinery

0.4%

Cummins 

13,727‌

3,326‌

Dover 

7,900‌

1,070‌

Ingersoll

Rand 

36,788‌

1,922‌

KION

Group

(EUR) 

76,365‌

2,175‌

Otis

Worldwide 

13,389‌

1,049‌

PACCAR 

12,927‌

1,279‌

SMC

(JPY) 

4,000‌

1,670‌

Stanley

Black

&

Decker 

17,305‌

1,300‌

THK

(JPY)  (5)

84,400‌

1,596‌

15,387‌

Professional

Services

0.4%

Booz

Allen

Hamilton

Holding 

2,600‌

271‌

CoStar

Group  (4)

8,773‌

678‌

Recruit

Holdings

(JPY) 

143,600‌

4,495‌

TechnoPro

Holdings

(JPY) 

158,500‌

4,220‌

Teleperformance

(EUR) 

17,162‌

4,103‌

TransUnion 

18,415‌

1,045‌

14,812‌

Road

&

Rail

0.7%

Canadian

Pacific

Railway 

19,143‌

1,428‌

Central

Japan

Railway

(JPY) 

23,100‌

2,836‌

CSX 

280,306‌

8,684‌

JB

Hunt

Transport

Services 

6,900‌

1,203‌

Norfolk

Southern 

18,527‌

4,565‌

Old

Dominion

Freight

Line 

13,796‌

3,915‌

Saia  (4)

3,919‌

822‌

Union

Pacific 

14,800‌

3,065‌

26,518‌

Trading

Companies

&

Distributors

0.4%

Ashtead

Group

(GBP) 

83,041‌

4,717‌

Bunzl

(GBP) 

87,122‌

2,899‌

Mitsubishi

(JPY) 

125,300‌

4,068‌

T.

ROWE

PRICE

Balanced

Fund

29

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Sumitomo

(JPY) 

262,700‌

4,367‌

United

Rentals  (4)

3,203‌

1,138‌

17,189‌

Total

Industrials

&

Business

Services

207,385‌

INFORMATION

TECHNOLOGY

13.3%

Communications

Equipment

0.2%

Arista

Networks  (4)

10,847‌

1,316‌

Cisco

Systems 

23,374‌

1,113‌

LM

Ericsson,

Class

B

(SEK) 

925,799‌

5,425‌

7,854‌

Electronic

Equipment,

Instruments

&

Components

0.4%

Amphenol,

Class

A 

493‌

37‌

Hamamatsu

Photonics

(JPY) 

73,600‌

3,513‌

Largan

Precision

(TWD) 

19,000‌

1,256‌

Murata

Manufacturing

(JPY) 

82,600‌

4,073‌

Omron

(JPY) 

37,900‌

1,832‌

TE

Connectivity 

22,988‌

2,639‌

Teledyne

Technologies  (4)

5,298‌

2,119‌

Trimble  (4)

15,600‌

789‌

16,258‌

IT

Services

2.5%

Accenture,

Class

A 

28,449‌

7,591‌

Adyen

(EUR)  (4)

2,269‌

3,150‌

Affirm

Holdings  (4)

33,014‌

319‌

Amadeus

IT

Group

(EUR)  (4)

59,407‌

3,082‌

ANT

International,

Class

C,

Acquisition

Date:

6/7/18,

Cost $1,137  (4)(6)(7)

298,203‌

605‌

Block,

Class

A  (4)

28,696‌

1,803‌

Cognizant

Technology

Solutions,

Class

A 

6,306‌

361‌

Fidelity

National

Information

Services 

25,600‌

1,737‌

Fiserv  (4)

128,167‌

12,954‌

FleetCor

Technologies  (4)

15,254‌

2,802‌

Global

Payments 

22,803‌

2,265‌

Mastercard,

Class

A 

62,762‌

21,824‌

MongoDB  (4)

14,108‌

2,777‌

NTT

Data

(JPY) 

453,700‌

6,612‌

PayPal

Holdings  (4)

14,694‌

1,047‌

Shopify,

Class

A  (4)

61,110‌

2,121‌

Snowflake,

Class

A  (4)

7,726‌

1,109‌

Visa,

Class

A 

130,844‌

27,184‌

99,343‌

Semiconductors

&

Semiconductor

Equipment

3.6%

Advanced

Micro

Devices  (4)

111,995‌

7,254‌

T.

ROWE

PRICE

Balanced

Fund

30

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Analog

Devices 

4,400‌

722‌

Applied

Materials 

40,300‌

3,924‌

ASML

Holding

(EUR) 

19,401‌

10,578‌

ASML

Holding 

15,443‌

8,438‌

Broadcom 

43,565‌

24,358‌

Enphase

Energy  (4)

2,800‌

742‌

First

Solar  (4)

1,200‌

180‌

KLA 

30,369‌

11,450‌

Lam

Research 

12,052‌

5,065‌

Marvell

Technology 

69,942‌

2,591‌

Micron

Technology 

87,900‌

4,393‌

Monolithic

Power

Systems 

10,635‌

3,761‌

NVIDIA 

153,159‌

22,383‌

NXP

Semiconductors 

38,327‌

6,057‌

QUALCOMM 

17,909‌

1,969‌

Renesas

Electronics

(JPY)  (4)

221,400‌

1,957‌

Taiwan

Semiconductor

Manufacturing

(TWD) 

874,969‌

12,708‌

Taiwan

Semiconductor

Manufacturing,

ADR 

22,172‌

1,652‌

Texas

Instruments 

63,467‌

10,486‌

Tokyo

Electron

(JPY) 

12,400‌

3,643‌

144,311‌

Software

4.2%

Adobe (4)

7,550‌

2,541‌

Atlassian,

Class

A  (4)

15,947‌

2,052‌

Bill.com

Holdings  (4)

18,936‌

2,063‌

Black

Knight  (4)

3,327‌

205‌

Cadence

Design

Systems  (4)

9,800‌

1,574‌

Canva,

Acquisition

Date:

8/16/21

-

12/17/21,

Cost $668  (4)(6)(7)

392‌

216‌

Confluent,

Class

A  (4)

31,186‌

694‌

Crowdstrike

Holdings,

Class

A  (4)

6,445‌

679‌

Datadog,

Class

A  (4)

12,197‌

897‌

Descartes

Systems

Group  (4)

8,000‌

557‌

Fortinet  (4)

35,046‌

1,713‌

Gen

Digital 

26,100‌

559‌

Gusto,

Acquisition

Date:

10/4/21,

Cost $216  (4)(6)(7)

7,517‌

142‌

Intuit 

28,865‌

11,235‌

Microsoft 

436,814‌

104,757‌

Paycom

Software  (4)

2,054‌

637‌

Salesforce  (4)

51,423‌

6,818‌

SAP

(EUR) 

68,163‌

7,037‌

ServiceNow  (4)

35,502‌

13,784‌

Synopsys  (4)

25,568‌

8,164‌

Workday,

Class

A  (4)

2,388‌

400‌

Zoom

Video

Communications,

Class

A  (4)

4,732‌

321‌

167,045‌

T.

ROWE

PRICE

Balanced

Fund

31

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Technology

Hardware,

Storage

&

Peripherals

2.4%

Apple 

661,818‌

85,990‌

Pure

Storage,

Class

A  (4)

15,100‌

404‌

Samsung

Electronics

(KRW) 

181,025‌

7,946‌

Western

Digital  (4)

17,800‌

561‌

94,901‌

Total

Information

Technology

529,712‌

MATERIALS

2.5%

Chemicals

1.5%

Air

Liquide

(EUR) 

40,021‌

5,680‌

Air

Products

&

Chemicals 

6,020‌

1,856‌

Akzo

Nobel

(EUR) 

61,261‌

4,111‌

Asahi

Kasei

(JPY) 

433,400‌

3,085‌

BASF

(EUR) 

73,938‌

3,641‌

CF

Industries

Holdings 

9,666‌

823‌

Corteva 

6,400‌

376‌

Covestro

(EUR) 

77,234‌

3,009‌

FMC 

5,600‌

699‌

International

Flavors

&

Fragrances 

26,800‌

2,810‌

Johnson

Matthey

(GBP) 

148,325‌

3,791‌

Linde 

26,550‌

8,660‌

Nutrien 

83,408‌

6,091‌

PPG

Industries 

2,200‌

277‌

RPM

International 

8,972‌

874‌

Sherwin-Williams 

35,140‌

8,340‌

Tosoh

(JPY) 

39,200‌

466‌

Umicore

(EUR) 

102,776‌

3,780‌

58,369‌

Construction

Materials

0.0%

Vulcan

Materials 

5,005‌

876‌

876‌

Containers

&

Packaging

0.2%

Amcor,

CDI

(AUD) 

229,553‌

2,752‌

Avery

Dennison 

6,790‌

1,229‌

Ball 

13,279‌

679‌

International

Paper 

12,765‌

442‌

Packaging

Corp.

of

America 

6,448‌

825‌

Sealed

Air 

21,787‌

1,087‌

Westrock 

8,213‌

289‌

7,303‌

Metals

&

Mining

0.7%

Antofagasta

(GBP) 

252,910‌

4,721‌

BHP

Group

(AUD) 

73,640‌

2,281‌

T.

ROWE

PRICE

Balanced

Fund

32

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

BHP

Group

(GBP) 

188,321‌

5,853‌

IGO

(AUD) 

1,022,029‌

9,349‌

Rio

Tinto

(AUD) 

24,553‌

1,938‌

South32

(AUD) 

1,146,688‌

3,144‌

Steel

Dynamics 

3,300‌

322‌

27,608‌

Paper

&

Forest

Products

0.1%

Stora

Enso,

Class

R

(EUR) 

303,205‌

4,275‌

West

Fraser

Timber 

3,100‌

224‌

4,499‌

Total

Materials

98,655‌

REAL

ESTATE

0.9%

Equity

Real

Estate

Investment

Trusts

0.8%

Alexandria

Real

Estate

Equities,

REIT 

3,461‌

504‌

American

Homes

4

Rent,

Class

A,

REIT 

7,200‌

217‌

American

Tower,

REIT 

3,848‌

815‌

AvalonBay

Communities,

REIT 

3,320‌

536‌

Boston

Properties,

REIT 

8,700‌

588‌

Camden

Property

Trust,

REIT 

1,800‌

201‌

Equinix,

REIT 

3,433‌

2,249‌

Equity

LifeStyle

Properties,

REIT 

24,717‌

1,597‌

Essex

Property

Trust,

REIT 

3,290‌

697‌

Extra

Space

Storage,

REIT 

4,600‌

677‌

Great

Portland

Estates

(GBP) 

388,059‌

2,313‌

Prologis,

REIT 

70,066‌

7,899‌

Public

Storage,

REIT 

3,886‌

1,089‌

Rexford

Industrial

Realty,

REIT 

13,653‌

746‌

SBA

Communications,

REIT 

12,438‌

3,487‌

Scentre

Group

(AUD) 

1,716,802‌

3,342‌

Simon

Property

Group,

REIT 

6,635‌

779‌

Sun

Communities,

REIT 

890‌

127‌

Welltower,

REIT 

15,810‌

1,036‌

Weyerhaeuser,

REIT 

92,373‌

2,864‌

31,763‌

Real

Estate

Management

&

Development

0.1%

Mitsui

Fudosan

(JPY) 

321,300‌

5,872‌

5,872‌

Total

Real

Estate

37,635‌

UTILITIES

1.9%

Electric

Utilities

0.9%

American

Electric

Power 

43,657‌

4,145‌

Exelon 

43,832‌

1,895‌

FirstEnergy 

72,543‌

3,043‌

T.

ROWE

PRICE

Balanced

Fund

33

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

NextEra

Energy 

44,323‌

3,705‌

PG&E  (4)

153,455‌

2,495‌

Southern 

288,970‌

20,635‌

Xcel

Energy 

27,794‌

1,949‌

37,867‌

Gas

Utilities

0.0%

Beijing

Enterprises

Holdings

(HKD) 

428,500‌

1,368‌

1,368‌

Independent

Power

&

Renewable

Electricity

Producers

0.1%

Electric

Power

Development

(JPY) 

161,400‌

2,563‌

2,563‌

Multi-Utilities

0.9%

Ameren 

47,122‌

4,190‌

CMS

Energy 

11,159‌

707‌

Dominion

Energy 

72,330‌

4,435‌

DTE

Energy 

25,355‌

2,980‌

Engie

(EUR) 

571,871‌

8,181‌

National

Grid

(GBP) 

415,149‌

4,973‌

Sempra

Energy 

44,569‌

6,888‌

WEC

Energy

Group 

21,564‌

2,022‌

34,376‌

Total

Utilities

76,174‌

Total

Common

Stocks

(Cost

$1,484,461)

2,418,940‌

CONVERTIBLE

PREFERRED

STOCKS

0.0%

INFORMATION

TECHNOLOGY

0.0%

Software

0.0%

Canva,

Series

A,

Acquisition

Date:

11/4/21

-

12/17/21,

Cost $43  (4)(6)(7)

25‌

14‌

Canva,

Series

A-3,

Acquisition

Date:

12/17/21,

Cost $3  (4)(6)(7)

2‌

1‌

Databricks,

Series

G,

Acquisition

Date:

2/1/21,

Cost $229  (4)(6)(7)

3,879‌

233‌

Databricks,

Series

H,

Acquisition

Date:

8/31/21,

Cost $625  (4)(6)

(7)

8,505‌

510‌

Gusto,

Series

E,

Acquisition

Date:

7/13/21,

Cost $317  (4)(6)(7)

10,431‌

196‌

Total

Information

Technology

954‌

Total

Convertible

Preferred

Stocks

(Cost

$1,217)

954‌

CORPORATE

BONDS

8.2%

Abbott

Laboratories,

3.40%,

11/30/23 

1,281,000‌

1,264‌

AbbVie,

2.95%,

11/21/26 

920,000‌

855‌

AbbVie,

3.20%,

5/14/26 

420,000‌

398‌

T.

ROWE

PRICE

Balanced

Fund

34

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

AbbVie,

4.50%,

5/14/35 

1,900,000‌

1,764‌

AbbVie,

4.70%,

5/14/45 

915,000‌

823‌

ABN

AMRO

Bank,

4.75%,

7/28/25  (1)

940,000‌

909‌

AerCap

Ireland

Capital,

2.45%,

10/29/26 

935,000‌

816‌

AerCap

Ireland

Capital,

4.125%,

7/3/23 

1,945,000‌

1,933‌

AerCap

Ireland

Capital,

6.50%,

7/15/25 

365,000‌

369‌

AHS

Hospital,

5.024%,

7/1/45 

1,600,000‌

1,543‌

AIA

Group,

3.20%,

3/11/25  (1)

1,020,000‌

978‌

Alcon

Finance,

2.60%,

5/27/30  (1)

1,300,000‌

1,101‌

Alexandria

Real

Estate

Equities,

3.95%,

1/15/27 

655,000‌

624‌

Alfa

SAB

de

CV,

5.25%,

3/25/24  (1)

395,000‌

393‌

Allstate,

5.55%,

5/9/35 

1,000,000‌

1,024‌

Ally

Financial,

2.20%,

11/2/28 

700,000‌

546‌

Altria

Group,

2.35%,

5/6/25 

415,000‌

390‌

Amazon.com,

2.80%,

8/22/24 

1,055,000‌

1,023‌

Amazon.com,

3.875%,

8/22/37 

1,645,000‌

1,463‌

America

Movil

SAB

de

CV,

2.875%,

5/7/30 

2,525,000‌

2,146‌

America

Movil

SAB

de

CV,

6.375%,

3/1/35 

300,000‌

319‌

American

Airlines

PTT,

Series 2014-1,

Class

A,

3.70%,

10/1/26 

742,693‌

633‌

American

Airlines

PTT,

Series 2016-1,

Class

B,

5.25%,

1/15/24 

1,252,392‌

1,218‌

American

Honda

Finance,

0.75%,

8/9/24 

2,335,000‌

2,186‌

Amgen,

2.77%,

9/1/53 

447,000‌

271‌

Anheuser-Busch

InBev

Worldwide,

5.55%,

1/23/49 

2,120,000‌

2,122‌

APA

Infrastructure,

4.25%,

7/15/27  (1)(5)

620,000‌

578‌

Appalachian

Power,

4.45%,

6/1/45 

2,450,000‌

2,016‌

Apple,

1.65%,

5/11/30 

2,345,000‌

1,920‌

AT&T,

2.25%,

2/1/32 

1,400,000‌

1,099‌

AT&T,

3.50%,

6/1/41 

680,000‌

510‌

Atmos

Energy,

4.15%,

1/15/43 

1,500,000‌

1,252‌

Ausgrid

Finance,

3.85%,

5/1/23  (1)

1,705,000‌

1,696‌

AutoZone,

3.125%,

4/21/26 

650,000‌

614‌

Baidu,

3.875%,

9/29/23 

2,000,000‌

1,977‌

Baltimore

Gas

&

Electric,

3.35%,

7/1/23 

1,750,000‌

1,732‌

Banco

Santander,

3.125%,

2/23/23 

1,000,000‌

996‌

Banco

Santander,

3.49%,

5/28/30 

200,000‌

169‌

Banco

Santander,

3.848%,

4/12/23 

2,000,000‌

1,988‌

Banco

Santander

Chile,

2.70%,

1/10/25  (1)

1,322,000‌

1,256‌

Banco

Santander

Mexico

Institucion

de

Banca

Multiple

Grupo

Financiero

Santand,

5.375%,

4/17/25  (1)

1,110,000‌

1,101‌

Bank

of

America,

4.20%,

8/26/24 

600,000‌

590‌

Bank

of

America,

6.11%,

1/29/37 

900,000‌

915‌

Bank

of

America,

6.75%,

6/1/28 

700,000‌

728‌

Bank

of

America,

VR,

2.299%,

7/21/32  (8)

2,240,000‌

1,723‌

Bank

of

America,

VR,

2.676%,

6/19/41  (8)

3,450,000‌

2,323‌

Bank

of

America,

Series N,

VR,

2.651%,

3/11/32  (8)

2,325,000‌

1,860‌

Bank

of

Montreal,

2.65%,

3/8/27 

2,035,000‌

1,859‌

T.

ROWE

PRICE

Balanced

Fund

35

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Banner

Health,

1.897%,

1/1/31 

670,000‌

531‌

Barclays,

VR,

2.852%,

5/7/26  (8)

1,880,000‌

1,743‌

BAT

Capital,

4.39%,

8/15/37 

1,385,000‌

1,075‌

Baylor

Scott

&

White

Holdings,

3.967%,

11/15/46 

1,850,000‌

1,493‌

Becton

Dickinson

&

Company,

2.823%,

5/20/30 

1,380,000‌

1,185‌

Becton

Dickinson

&

Company,

3.70%,

6/6/27 

1,956,000‌

1,846‌

Berkshire

Hathaway

Energy,

5.15%,

11/15/43 

1,350,000‌

1,277‌

BNP

Paribas,

VR,

2.219%,

6/9/26  (1)(8)

1,315,000‌

1,208‌

BNP

Paribas,

VR,

2.871%,

4/19/32  (1)(8)

3,100,000‌

2,423‌

Boardwalk

Pipelines,

4.45%,

7/15/27 

385,000‌

365‌

Boardwalk

Pipelines,

4.95%,

12/15/24 

780,000‌

771‌

Booking

Holdings,

3.65%,

3/15/25 

1,515,000‌

1,475‌

Boston

Properties,

3.125%,

9/1/23 

625,000‌

616‌

Boston

Properties,

3.65%,

2/1/26 

1,165,000‌

1,105‌

BPCE,

4.00%,

9/12/23  (1)

1,350,000‌

1,331‌

BPCE,

4.50%,

3/15/25  (1)

1,000,000‌

960‌

BPCE,

5.70%,

10/22/23  (1)

1,700,000‌

1,687‌

Brighthouse

Financial

Global

Funding,

1.55%,

5/24/26  (1)

1,110,000‌

975‌

Brixmor

Operating

Partnership,

3.90%,

3/15/27 

565,000‌

520‌

Brixmor

Operating

Partnership,

4.125%,

6/15/26 

1,220,000‌

1,146‌

Burlington

Northern

Santa

Fe,

4.375%,

9/1/42 

1,400,000‌

1,251‌

Burlington

Northern

Santa

Fe,

6.15%,

5/1/37 

650,000‌

704‌

Cameron

LNG,

2.902%,

7/15/31  (1)

575,000‌

485‌

Cameron

LNG,

3.701%,

1/15/39  (1)

475,000‌

378‌

Canadian

Natural

Resources,

2.95%,

7/15/30 

1,700,000‌

1,434‌

Canadian

Pacific

Railway,

1.75%,

12/2/26 

930,000‌

825‌

Capital

One

Financial,

3.65%,

5/11/27 

1,215,000‌

1,145‌

Cardinal

Health,

3.41%,

6/15/27 

1,570,000‌

1,466‌

Cardinal

Health,

3.75%,

9/15/25 

1,005,000‌

971‌

Carvana,

10.25%,

5/1/30  (1)

1,225,000‌

585‌

Celulosa

Arauco

y

Constitucion,

4.20%,

1/29/30  (1)

505,000‌

472‌

Charter

Communications

Operating,

3.70%,

4/1/51 

1,425,000‌

876‌

Charter

Communications

Operating,

4.908%,

7/23/25 

2,465,000‌

2,418‌

Cigna,

3.00%,

7/15/23 

810,000‌

800‌

Cigna,

3.75%,

7/15/23 

1,252,000‌

1,243‌

Citigroup,

VR,

2.976%,

11/5/30  (8)

2,750,000‌

2,313‌

Citigroup,

VR,

4.075%,

4/23/29  (8)

2,000,000‌

1,824‌

CMS

Energy,

4.70%,

3/31/43 

840,000‌

719‌

CMS

Energy,

4.875%,

3/1/44 

1,200,000‌

1,093‌

CNO

Global

Funding,

2.65%,

1/6/29  (1)

3,255,000‌

2,759‌

Coca-Cola

Europacific

Partners,

1.50%,

1/15/27  (1)

2,400,000‌

2,079‌

Comcast,

4.15%,

10/15/28 

2,455,000‌

2,366‌

CommonSpirit

Health,

2.76%,

10/1/24 

960,000‌

921‌

CommonSpirit

Health,

2.782%,

10/1/30 

755,000‌

622‌

Corebridge

Financial,

4.40%,

4/5/52  (1)

4,505,000‌

3,597‌

Cox

Communications,

2.95%,

10/1/50  (1)

2,775,000‌

1,663‌

T.

ROWE

PRICE

Balanced

Fund

36

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Credit

Agricole,

3.75%,

4/24/23  (1)

2,125,000‌

2,116‌

Credit

Suisse

Group,

VR,

2.593%,

9/11/25  (1)(8)

2,095,000‌

1,869‌

CRH

America

Finance,

3.95%,

4/4/28  (1)

2,600,000‌

2,442‌

Crown

Castle,

2.25%,

1/15/31 

1,440,000‌

1,149‌

Crown

Castle,

2.90%,

3/15/27 

735,000‌

669‌

Crown

Castle

Towers,

3.663%,

5/15/25  (1)

485,000‌

468‌

CVS

Health,

1.875%,

2/28/31 

1,745,000‌

1,372‌

CVS

Health,

2.70%,

8/21/40 

660,000‌

453‌

Daimler

Trucks

Finance

North

America,

3.65%,

4/7/27  (1)

2,155,000‌

2,017‌

Danske

Bank,

VR,

3.244%,

12/20/25  (1)(8)

2,940,000‌

2,750‌

Delta

Air

Lines,

3.80%,

4/19/23 

168,000‌

166‌

Discover

Bank,

2.70%,

2/6/30 

2,000,000‌

1,610‌

Discover

Financial

Services,

3.75%,

3/4/25 

590,000‌

566‌

Duke

Energy,

2.65%,

9/1/26 

640,000‌

592‌

Duke

Energy,

3.75%,

9/1/46 

500,000‌

369‌

Eaton

Vance,

3.625%,

6/15/23 

750,000‌

745‌

Elevance

Health,

4.65%,

1/15/43 

915,000‌

828‌

Enbridge,

4.00%,

10/1/23 

690,000‌

683‌

Enbridge,

4.25%,

12/1/26 

590,000‌

568‌

Enbridge

Energy

Partners,

5.50%,

9/15/40 

245,000‌

228‌

Energy

Transfer,

3.75%,

5/15/30 

765,000‌

674‌

Energy

Transfer,

5.25%,

4/15/29 

1,225,000‌

1,185‌

Eni,

Series X-R,

4.00%,

9/12/23  (1)

780,000‌

773‌

EOG

Resources,

2.625%,

3/15/23 

500,000‌

498‌

Equitable

Financial

Life

Global

Funding,

1.40%,

7/7/25  (1)

780,000‌

710‌

Equitable

Holdings,

3.90%,

4/20/23 

478,000‌

476‌

ERAC

USA

Finance,

3.85%,

11/15/24  (1)

435,000‌

421‌

ERAC

USA

Finance,

4.50%,

2/15/45  (1)

505,000‌

415‌

Essex

Portfolio,

2.65%,

3/15/32 

1,430,000‌

1,125‌

Federal

Realty

Investment

Trust,

2.75%,

6/1/23 

1,500,000‌

1,481‌

Fidelity

National

Financial,

4.50%,

8/15/28 

2,065,000‌

1,957‌

First

American

Financial,

4.60%,

11/15/24 

415,000‌

408‌

FirstEnergy

Transmission,

4.35%,

1/15/25  (1)

1,310,000‌

1,281‌

Fiserv,

3.20%,

7/1/26 

1,100,000‌

1,028‌

GATX,

4.35%,

2/15/24 

2,105,000‌

2,074‌

General

Motors,

4.00%,

4/1/25 

1,120,000‌

1,093‌

General

Motors

Financial,

2.40%,

4/10/28 

3,205,000‌

2,703‌

George

Washington

University,

Series 2014,

4.30%,

9/15/44 

975,000‌

821‌

Goldman

Sachs

Group,

6.75%,

10/1/37 

700,000‌

746‌

Goldman

Sachs

Group,

VR,

2.615%,

4/22/32  (8)

1,300,000‌

1,036‌

Goldman

Sachs

Group,

VR,

2.908%,

7/21/42  (8)

1,710,000‌

1,163‌

Hasbro,

3.00%,

11/19/24 

1,550,000‌

1,490‌

Hasbro,

3.55%,

11/19/26 

1,760,000‌

1,650‌

HCA,

4.125%,

6/15/29 

1,895,000‌

1,743‌

HCA,

4.375%,

3/15/42  (1)

775,000‌

619‌

Healthcare

Realty

Holdings,

3.625%,

1/15/28 

1,075,000‌

952‌

T.

ROWE

PRICE

Balanced

Fund

37

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Healthpeak

Properties,

2.125%,

12/1/28 

655,000‌

550‌

Healthpeak

Properties,

2.875%,

1/15/31 

360,000‌

301‌

High

Street

Funding

Trust

I,

4.111%,

2/15/28  (1)

1,800,000‌

1,675‌

HSBC

Bank

USA,

5.875%,

11/1/34 

950,000‌

913‌

Humana,

2.15%,

2/3/32 

1,145,000‌

896‌

Humana,

3.70%,

3/23/29 

1,120,000‌

1,029‌

Hyundai

Capital

America,

2.00%,

6/15/28  (1)

2,435,000‌

1,986‌

Iberdrola

International,

6.75%,

9/15/33 

1,000,000‌

1,047‌

Illinois

Tool

Works,

3.90%,

9/1/42 

1,200,000‌

1,026‌

Interpublic

Group,

4.20%,

4/15/24 

293,000‌

288‌

Intesa

Sanpaolo,

3.375%,

1/12/23  (1)

660,000‌

659‌

Jackson

National

Life

Global

Funding,

1.75%,

1/12/25  (1)

3,430,000‌

3,185‌

JDE

Peet's,

1.375%,

1/15/27  (1)

2,240,000‌

1,898‌

John

Deere

Capital,

2.125%,

3/7/25 

1,955,000‌

1,848‌

JPMorgan

Chase,

3.375%,

5/1/23 

1,080,000‌

1,074‌

JPMorgan

Chase,

VR,

2.956%,

5/13/31  (8)

3,820,000‌

3,149‌

JPMorgan

Chase,

VR,

3.559%,

4/23/24  (8)

1,875,000‌

1,862‌

Kansas

City

Southern,

3.50%,

5/1/50 

1,695,000‌

1,205‌

Kilroy

Realty,

3.45%,

12/15/24 

1,350,000‌

1,284‌

Kilroy

Realty,

4.375%,

10/1/25 

480,000‌

464‌

L3Harris

Technologies,

3.832%,

4/27/25 

570,000‌

554‌

Liberty

Mutual

Group,

4.25%,

6/15/23  (1)

410,000‌

407‌

Liberty

Mutual

Group,

4.85%,

8/1/44  (1)

1,700,000‌

1,403‌

M&T

Bank,

3.55%,

7/26/23 

2,740,000‌

2,717‌

Manufacturers

&

Traders

Trust,

3.40%,

8/17/27 

250,000‌

228‌

Marsh

&

McLennan,

3.50%,

6/3/24 

3,060,000‌

3,001‌

Mayo

Clinic,

Series 2013,

4.00%,

11/15/47 

1,500,000‌

1,242‌

McDonald's,

1.45%,

9/1/25 

940,000‌

860‌

MedStar

Health,

Series 20A,

3.626%,

8/15/49 

905,000‌

646‌

Micron

Technology,

4.185%,

2/15/27 

880,000‌

836‌

Mid-Atlantic

Interstate

Transmission,

4.10%,

5/15/28  (1)

2,640,000‌

2,477‌

Mississippi

Power,

3.95%,

3/30/28 

1,435,000‌

1,346‌

Mitsubishi

UFJ

Financial

Group,

2.193%,

2/25/25 

2,200,000‌

2,059‌

Moody's,

2.00%,

8/19/31 

2,195,000‌

1,732‌

Morgan

Stanley,

4.30%,

1/27/45 

1,150,000‌

979‌

Morgan

Stanley,

6.25%,

8/9/26 

755,000‌

785‌

Morgan

Stanley,

VR,

3.971%,

7/22/38  (8)

1,445,000‌

1,213‌

NatWest

Markets,

2.375%,

5/21/23  (1)

3,370,000‌

3,325‌

New

York

Life

Global

Funding,

1.10%,

5/5/23  (1)

600,000‌

592‌

NextEra

Energy

Capital

Holdings,

2.44%,

1/15/32 

1,895,000‌

1,510‌

NiSource,

3.49%,

5/15/27 

1,730,000‌

1,625‌

NiSource,

3.95%,

3/30/48 

1,775,000‌

1,367‌

Nordea

Bank,

1.00%,

6/9/23  (1)

820,000‌

806‌

Nucor,

2.70%,

6/1/30 

455,000‌

386‌

Nucor,

3.95%,

5/1/28 

2,140,000‌

2,018‌

Nutrien,

4.00%,

12/15/26 

830,000‌

804‌

T.

ROWE

PRICE

Balanced

Fund

38

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Omnicom

Group,

3.60%,

4/15/26 

830,000‌

797‌

O'Reilly

Automotive,

3.60%,

9/1/27 

1,825,000‌

1,717‌

PACCAR

Financial,

0.90%,

11/8/24 

2,875,000‌

2,685‌

Pacific

Gas

&

Electric,

2.10%,

8/1/27 

1,340,000‌

1,142‌

Packaging

Corp.

of

America,

3.65%,

9/15/24 

785,000‌

765‌

PayPal

Holdings,

2.40%,

10/1/24 

2,720,000‌

2,602‌

Perrigo

Finance

Unlimited,

4.40%,

6/15/30 

1,510,000‌

1,280‌

Pioneer

Natural

Resources,

1.125%,

1/15/26 

755,000‌

671‌

PNC

Bank,

3.50%,

6/8/23 

1,330,000‌

1,321‌

PPL

Capital

Funding,

3.10%,

5/15/26 

2,200,000‌

2,032‌

Pricoa

Global

Funding

I,

3.45%,

9/1/23  (1)

2,650,000‌

2,618‌

Principal

Financial

Group,

3.40%,

5/15/25 

2,460,000‌

2,386‌

Protective

Life

Global

Funding,

1.082%,

6/9/23  (1)

780,000‌

766‌

Providence

Health

&

Services

Obligated

Group,

4.379%,

10/1/23 

1,310,000‌

1,303‌

Public

Storage,

1.95%,

11/9/28 

1,210,000‌

1,021‌

QUALCOMM,

3.25%,

5/20/27 

1,120,000‌

1,061‌

QVC,

4.45%,

2/15/25 

140,000‌

114‌

QVC,

4.85%,

4/1/24 

1,645,000‌

1,532‌

Realty

Income,

3.10%,

12/15/29 

2,130,000‌

1,852‌

Realty

Income,

3.95%,

8/15/27 

1,490,000‌

1,418‌

RELX

Capital,

3.00%,

5/22/30 

945,000‌

808‌

RELX

Capital,

3.50%,

3/16/23 

840,000‌

837‌

Republic

Services,

3.375%,

11/15/27 

1,045,000‌

975‌

Rogers

Communications,

3.625%,

12/15/25 

610,000‌

584‌

Rogers

Communications,

4.50%,

3/15/42  (1)

2,935,000‌

2,456‌

Roper

Technologies,

2.95%,

9/15/29 

380,000‌

331‌

Roper

Technologies,

3.80%,

12/15/26 

1,085,000‌

1,039‌

Ross

Stores,

1.875%,

4/15/31 

450,000‌

353‌

Royal

Bank

of

Canada,

1.60%,

4/17/23 

2,075,000‌

2,054‌

Sabine

Pass

Liquefaction,

4.20%,

3/15/28 

1,335,000‌

1,257‌

Sabine

Pass

Liquefaction,

4.50%,

5/15/30 

560,000‌

519‌

Santander

Holdings

USA,

VR,

2.49%,

1/6/28  (8)

1,365,000‌

1,170‌

Santander

U.K.

Group

Holdings,

VR,

2.469%,

1/11/28  (8)

1,605,000‌

1,371‌

SBA

Tower

Trust,

2.836%,

1/15/25  (1)

1,135,000‌

1,069‌

Sempra

Energy,

3.30%,

4/1/25 

835,000‌

802‌

Shire

Acquisitions

Investments

Ireland,

2.875%,

9/23/23 

1,138,000‌

1,117‌

Simon

Property

Group,

2.65%,

2/1/32 

1,810,000‌

1,451‌

Simon

Property

Group,

3.80%,

7/15/50 

1,865,000‌

1,362‌

SMBC

Aviation

Capital

Finance,

4.125%,

7/15/23  (1)

422,000‌

417‌

Spectra

Energy

Partners,

3.375%,

10/15/26 

480,000‌

447‌

Spectra

Energy

Partners,

4.75%,

3/15/24 

1,145,000‌

1,134‌

Standard

Chartered,

VR,

1.822%,

11/23/25  (1)(8)

2,005,000‌

1,834‌

Standard

Chartered,

VR,

2.608%,

1/12/28  (1)(8)

1,000,000‌

869‌

State

Street,

3.10%,

5/15/23 

265,000‌

263‌

Sumitomo

Mitsui

Financial

Group,

3.748%,

7/19/23 

2,045,000‌

2,027‌

Tampa

Electric,

6.15%,

5/15/37 

1,000,000‌

1,013‌

T.

ROWE

PRICE

Balanced

Fund

39

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Teachers

Insurance

&

Annuity

Assn.

of

America,

4.90%,

9/15/44  (1)

1,800,000‌

1,643‌

Tencent

Holdings,

2.985%,

1/19/23  (1)

960,000‌

959‌

Texas

Instruments,

1.375%,

3/12/25 

650,000‌

608‌

Thomson

Reuters,

3.35%,

5/15/26 

405,000‌

384‌

Time

Warner

Cable,

6.55%,

5/1/37 

450,000‌

426‌

Time

Warner

Cable,

6.75%,

6/15/39 

530,000‌

502‌

TJX,

1.60%,

5/15/31 

375,000‌

291‌

Toronto-Dominion

Bank,

3.50%,

7/19/23 

1,235,000‌

1,226‌

TotalEnergies

Capital

International,

2.986%,

6/29/41 

2,630,000‌

1,963‌

Transcontinental

Gas

Pipe

Line,

4.60%,

3/15/48 

1,645,000‌

1,373‌

Transurban

Finance,

2.45%,

3/16/31  (1)

1,445,000‌

1,141‌

Transurban

Finance,

3.375%,

3/22/27  (1)

395,000‌

364‌

Transurban

Finance,

4.125%,

2/2/26  (1)

335,000‌

321‌

Travelers,

6.25%,

6/15/37 

750,000‌

812‌

Trinity

Health,

4.125%,

12/1/45 

725,000‌

613‌

United

Airlines

PTT,

Series 2019-1,

Class

AA,

4.15%,

8/25/31 

978,107‌

869‌

UnitedHealth

Group,

3.75%,

7/15/25 

645,000‌

629‌

Verizon

Communications,

2.10%,

3/22/28 

460,000‌

399‌

Verizon

Communications,

2.65%,

11/20/40 

2,470,000‌

1,671‌

Verizon

Communications,

4.00%,

3/22/50 

2,000,000‌

1,559‌

Verizon

Communications,

4.272%,

1/15/36 

870,000‌

772‌

Vistra

Operations,

3.55%,

7/15/24  (1)

1,370,000‌

1,315‌

VMware,

1.40%,

8/15/26 

3,125,000‌

2,726‌

Vodafone

Group,

4.25%,

9/17/50 

775,000‌

597‌

Vodafone

Group,

4.875%,

6/19/49 

2,045,000‌

1,722‌

Volkswagen

Group

of

America

Finance,

3.35%,

5/13/25  (1)

1,395,000‌

1,334‌

Vulcan

Materials,

4.50%,

6/15/47 

590,000‌

494‌

Walt

Disney,

3.70%,

10/15/25 

525,000‌

510‌

Warnermedia

Holdings,

5.05%,

3/15/42  (1)

1,570,000‌

1,204‌

Waste

Connections,

3.20%,

6/1/32 

2,315,000‌

1,991‌

Weibo,

3.50%,

7/5/24  (5)

1,390,000‌

1,347‌

Wells

Fargo,

VR,

2.393%,

6/2/28  (8)

3,915,000‌

3,457‌

Wells

Fargo,

VR,

3.068%,

4/30/41  (8)

3,995,000‌

2,852‌

Williams,

5.10%,

9/15/45 

1,735,000‌

1,533‌

Willis

North

America,

4.50%,

9/15/28 

1,370,000‌

1,285‌

Woodside

Finance,

3.70%,

9/15/26  (1)

738,000‌

688‌

Woodside

Finance,

3.70%,

3/15/28  (1)

1,187,000‌

1,076‌

Workday,

3.70%,

4/1/29 

750,000‌

690‌

WP

Carey,

3.85%,

7/15/29 

1,470,000‌

1,322‌

WPP

Finance

2010,

3.75%,

9/19/24 

1,310,000‌

1,267‌

Total

Corporate

Bonds

(Cost

$370,235)

328,770‌

T.

ROWE

PRICE

Balanced

Fund

40

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

EQUITY

MUTUAL

FUNDS

3.3%

T.

Rowe

Price

Real

Assets

Fund

-

I

Class  (2)

9,817,066‌

131,450‌

Total

Equity

Mutual

Funds

(Cost

$117,960)

131,450‌

FOREIGN

GOVERNMENT

OBLIGATIONS

&

MUNICIPALITIES

0.4%

Autoridad

del

Canal

de

Panama,

4.95%,

7/29/35  (1)

510,000‌

482‌

Corp

Nacional

del

Cobre

de

Chile,

3.00%,

9/30/29  (1)

2,645,000‌

2,315‌

Mexico

Government

International

Bond,

3.50%,

2/12/34 

2,315,000‌

1,858‌

Pertamina

Persero,

4.30%,

5/20/23  (1)

1,250,000‌

1,241‌

Perusahaan

Gas

Negara,

5.125%,

5/16/24  (1)

1,105,000‌

1,098‌

Republic

of

Colombia,

4.00%,

2/26/24 

275,000‌

270‌

Republic

of

Panama,

3.298%,

1/19/33 

2,100,000‌

1,705‌

Republic

of

Poland,

3.25%,

4/6/26 

1,030,000‌

990‌

State

Grid

Overseas

Investment,

3.75%,

5/2/23  (1)

1,175,000‌

1,171‌

United

Mexican

States,

2.659%,

5/24/31 

3,439,000‌

2,782‌

Total

Foreign

Government

Obligations

&

Municipalities

(Cost

$15,745)

13,912‌

MUNICIPAL

SECURITIES

1.0%

California

0.3%

Bay

Area

Toll

Auth.,

Series S-10,

3.176%,

4/1/41 

2,900,000‌

2,187‌

California,

Build

America,

GO,

7.625%,

3/1/40 

2,200,000‌

2,778‌

Inland

Valley

Dev.

Agency,

Tax

Allocation,

Series B,

5.50%,

3/1/33  (9)

695,000‌

703‌

Los

Angeles

Airport,

Build

America,

Series C,

7.053%,

5/15/40 

1,000,000‌

1,173‌

Univ.

of

California

Regents,

Series AJ,

4.601%,

5/15/31 

1,625,000‌

1,596‌

Univ.

of

California

Regents,

Series J,

4.131%,

5/15/45 

365,000‌

312‌

Univ.

of

California

Regents,

Build

America,

5.77%,

5/15/43 

750,000‌

789‌

9,538‌

Illinois

0.0%

Chicago

O'Hare

Int'l

Airport,

Build

America,

Series B,

6.395%,

1/1/40 

755,000‌

844‌

Chicago

O'Hare

Int'l

Airport,

Senior

Lien,

Series D,

2.346%,

1/1/30 

975,000‌

815‌

Illinois

Toll

Highway

Auth.,

Build

America,

Series A,

6.184%,

1/1/34 

470,000‌

504‌

Metropolitan

Water

Reclamation

Dist.

of

Greater

Chicago,

Build

America,

GO,

5.72%,

12/1/38 

500,000‌

528‌

2,691‌

Maryland

0.1%

Maryland

HHEFA,

Univ.

of

Maryland

Medical

System,

Series B,

4.665%,

7/1/36 

1,800,000‌

1,658‌

1,658‌

T.

ROWE

PRICE

Balanced

Fund

41

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Michigan

0.1%

Detroit

City

School

Dist.,

Qualified

School

Construction

Bonds,

GO,

6.645%,

5/1/29 

2,000,000‌

2,146‌

2,146‌

New

Jersey

0.0%

New

Jersey

Turnpike

Auth.,

Build

America,

Series F,

7.414%,

1/1/40 

415,000‌

514‌

514‌

New

York

0.1%

Metropolitan

Transportation

Auth.,

Build

America,

7.336%,

11/15/39 

240,000‌

294‌

Metropolitan

Transportation

Auth.,

Build

America,

Series A-1,

5.871%,

11/15/39 

700,000‌

674‌

New

York

City

Transitional

Fin.

Auth.

Future

Tax

Secured

Revenue,

Build

America,

5.508%,

8/1/37 

950,000‌

975‌

New

York

City

Water

&

Sewer

System,

Build

America,

6.011%,

6/15/42 

245,000‌

272‌

New

York

State

Dormitory

Auth.,

Build

America,

Series F,

Unrefunded

Portion,

5.628%,

3/15/39 

1,300,000‌

1,333‌

Port

Auth.

of

New

York

&

New

Jersey,

3.139%,

2/15/51 

800,000‌

566‌

Port

Auth.

of

New

York

&

New

Jersey,

Series 182,

5.31%,

8/1/46 

1,400,000‌

1,395‌

5,509‌

Ohio

0.0%

JobsOhio

Beverage

System,

Liquid

Profits,

Series B,

3.985%,

1/1/29 

1,225,000‌

1,188‌

1,188‌

Pennsylvania

0.0%

Philadelphia

Auth.

for

IDA,

3.964%,

4/15/26 

805,000‌

788‌

788‌

South

Carolina

0.1%

South

Carolina

Public

Service

Auth.,

Series C,

5.784%,

12/1/41 

2,000,000‌

1,949‌

1,949‌

Texas

0.1%

Central

Texas

Turnpike

System,

Series C,

3.029%,

8/15/41 

1,820,000‌

1,289‌

Dallas/Fort

Worth

Int'l

Airport,

Series A,

2.994%,

11/1/38 

1,155,000‌

938‌

Houston

Airport

System

Revenue,

Series C,

2.385%,

7/1/31 

685,000‌

554‌

Tarrant

County

Cultural

Ed.

Fac.

Fin.,

Series A,

4.366%,

11/15/47 

1,200,000‌

987‌

Texas

Private

Activity

Bond

Surface

Transportation,

North

Tarrant

Express,

Series B,

3.922%,

12/31/49 

1,900,000‌

1,439‌

5,207‌

Utah

0.0%

Utah

Transit

Auth.,

Build

America,

Series B,

5.937%,

6/15/39 

900,000‌

988‌

988‌

Virginia

0.1%

Univ.

of

Virginia,

Series B,

2.584%,

11/1/51 

3,675,000‌

2,395‌

T.

ROWE

PRICE

Balanced

Fund

42

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Virginia

Commonwealth

Transportation

Board,

Build

America,

Series B,

5.35%,

5/15/35 

690,000‌

704‌

Virginia

Public

Building

Auth.,

Build

America,

Series B-2,

5.90%,

8/1/30 

695,000‌

729‌

3,828‌

Wisconsin

0.1%

PFA,

Bayhealth

Medical

Center,

Series B,

3.405%,

7/1/51 

2,910,000‌

1,936‌

1,936‌

Total

Municipal

Securities

(Cost

$42,383)

37,940‌

NON-U.S.

GOVERNMENT

MORTGAGE-BACKED

SECURITIES

2.1%

Angel

Oak

Mortgage

Trust,

Series 2020-3,

Class

A1,

CMO,

ARM,

1.691%,

4/25/65  (1)

316,748‌

279‌

Angel

Oak

Mortgage

Trust,

Series 2020-6,

Class

A2,

CMO,

ARM,

1.518%,

5/25/65  (1)

313,453‌

268‌

Angel

Oak

Mortgage

Trust,

Series 2021-1,

Class

A1,

CMO,

ARM,

0.909%,

1/25/66  (1)

1,164,394‌

951‌

Angel

Oak

Mortgage

Trust,

Series 2021-2,

Class

A1,

CMO,

ARM,

0.985%,

4/25/66  (1)

1,010,099‌

829‌

Barclays

Mortgage

Loan

Trust,

Series 2021-NQM1,

Class

A3,

CMO,

ARM,

2.189%,

9/25/51  (1)

1,075,482‌

892‌

BBCMS

Mortgage

Trust,

Series 2019-BWAY,

Class

D,

ARM,

1M

USD

LIBOR

+

2.16%,

6.478%,

11/15/34  (1)

605,000‌

520‌

BBCMS

Mortgage

Trust,

Series 2020-BID,

Class

A,

ARM,

1M

USD

LIBOR

+

2.14%,

6.458%,

10/15/37  (1)

2,590,000‌

2,500‌

BFLD,

Series 2019-DPLO,

Class

C,

ARM,

1M

USD

LIBOR

+

1.54%,

5.858%,

10/15/34  (1)

2,080,000‌

2,012‌

BIG

Commercial

Mortgage

Trust,

Series 2022-BIG,

Class

A,

ARM,

1M

TSFR

+

1.342%,

5.678%,

2/15/39  (1)

3,395,000‌

3,258‌

BWAY

Mortgage

Trust,

Series 2022-26BW,

Class

A,

3.402%,

2/10/44  (1)

2,025,000‌

1,547‌

BX

Commercial

Mortgage

Trust,

Series 2022-LP2,

Class

C,

ARM,

1M

TSFR

+

1.562%,

5.897%,

2/15/39  (1)

3,379,340‌

3,182‌

BX

Trust,

Series 2022-IND,

Class

C,

ARM,

1M

TSFR

+

2.29%,

6.616%,

4/15/37  (1)

1,241,670‌

1,184‌

Cantor

Commercial

Real

Estate

Lending,

Series 2019-CF1,

Class

65A,

ARM,

4.411%,

5/15/52  (1)

800,000‌

747‌

Citigroup

Commercial

Mortgage

Trust,

Series 2014-GC21,

Class

AS,

4.026%,

5/10/47 

235,000‌

225‌

Citigroup

Mortgage

Loan

Trust,

Series 2020-EXP2,

Class

A3,

CMO,

ARM,

2.50%,

8/25/50  (1)

1,022,667‌

833‌

Cold

Storage

Trust,

Series 2020-ICE5,

Class

B,

ARM,

1M

USD

LIBOR

+

1.30%,

5.618%,

11/15/37  (1)

2,118,345‌

2,051‌

Commercial

Mortgage

Trust,

Series 2015-LC21,

Class

A4,

3.708%,

7/10/48 

3,700,000‌

3,521‌

T.

ROWE

PRICE

Balanced

Fund

43

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Commercial

Mortgage

Trust,

Series 2017-PANW,

Class

A,

3.244%,

10/10/29  (1)

2,160,000‌

2,016‌

Connecticut

Avenue

Securities

Trust,

Series 2022-R01,

Class

1M1,

CMO,

ARM,

SOFR30A

+

1.00%,

4.928%,

12/25/41  (1)

462,667‌

457‌

Deephaven

Residential

Mortgage

Trust,

Series 2021-2,

Class

A1,

CMO,

ARM,

0.899%,

4/25/66  (1)

414,994‌

349‌

Ellington

Financial

Mortgage

Trust,

Series 2019-2,

Class

A3,

CMO,

ARM,

3.046%,

11/25/59  (1)

218,002‌

204‌

Ellington

Financial

Mortgage

Trust,

Series 2021-2,

Class

A1,

CMO,

ARM,

0.931%,

6/25/66  (1)

600,125‌

462‌

Extended

Stay

America

Trust,

Series 2021-ESH,

Class

B,

ARM,

1M

USD

LIBOR

+

1.38%,

5.698%,

7/15/38  (1)

1,195,835‌

1,149‌

Flagstar

Mortgage

Trust,

Series 2021-5INV,

Class

A2,

CMO,

ARM,

2.50%,

7/25/51  (1)

2,499,206‌

2,006‌

Fontainebleau

Miami

Beach

Trust,

Series 2019-FBLU,

Class

C,

3.75%,

12/10/36  (1)

2,635,000‌

2,453‌

Galton

Funding

Mortgage

Trust,

Series 2018-1,

Class

A23,

CMO,

ARM,

3.50%,

11/25/57  (1)

103,482‌

93‌

Galton

Funding

Mortgage

Trust,

Series 2019-H1,

Class

A3,

CMO,

ARM,

2.964%,

10/25/59  (1)

901,558‌

867‌

Great

Wolf

Trust,

Series 2019-WOLF,

Class

C,

ARM,

1M

USD

LIBOR

+

1.633%,

5.951%,

12/15/36  (1)

1,130,000‌

1,079‌

GS

Mortgage

Securities

Trust,

Series 2015-GC32,

Class

A4,

3.764%,

7/10/48 

950,000‌

906‌

GS

Mortgage

Securities

Trust,

Series 2018-GS9,

Class

A4,

ARM,

3.992%,

3/10/51 

1,250,000‌

1,176‌

GS

Mortgage-Backed

Securities

Trust,

Series 2020-INV1,

Class

A14,

CMO,

ARM,

2.932%,

10/25/50  (1)

310,237‌

260‌

GS

Mortgage-Backed

Securities

Trust,

Series 2021-PJ5,

Class

A8,

CMO,

ARM,

2.50%,

10/25/51  (1)

2,507,499‌

2,150‌

JPMorgan

Barclays

Bank

Commercial

Mortgage

Securities

Trust,

Series 2015-C31,

Class

A3,

3.801%,

8/15/48 

2,105,214‌

2,002‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust,

Series 2020-609M,

Class

A,

ARM,

1M

USD

LIBOR

+

1.37%,

5.688%,

10/15/33  (1)

2,510,000‌

2,377‌

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust,

Series 2022-OPO,

Class

B,

3.377%,

1/5/39  (1)

760,000‌

617‌

JPMorgan

Mortgage

Trust,

Series 2019-INV3,

Class

A15,

CMO,

ARM,

3.50%,

5/25/50  (1)

631,722‌

535‌

JPMorgan

Mortgage

Trust,

Series 2019-INV3,

Class

A3,

CMO,

ARM,

3.50%,

5/25/50  (1)

731,847‌

634‌

MHC

Commercial

Mortgage

Trust,

Series 2021-MHC,

Class

B,

ARM,

1M

USD

LIBOR

+

1.101%,

5.419%,

4/15/38  (1)

3,595,000‌

3,451‌

Mill

City

Mortgage

Loan

Trust,

Series 2018-1,

Class

A1,

CMO,

ARM,

3.25%,

5/25/62  (1)

399,978‌

386‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust,

Series  2014-

C17,

Class

B,

ARM,

4.464%,

8/15/47 

1,670,000‌

1,587‌

T.

ROWE

PRICE

Balanced

Fund

44

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust,

Series  2015-

C24,

Class

AS,

ARM,

4.036%,

5/15/48 

1,375,000‌

1,296‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust,

Series  2015-

C27,

Class

AS,

4.068%,

12/15/47 

2,775,000‌

2,608‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust,

Series  2016-

C30,

Class

A5,

2.86%,

9/15/49 

495,000‌

450‌

Morgan

Stanley

Capital

I

Trust,

Series 2014-150E,

Class

A,

3.912%,

9/9/32  (1)

2,140,000‌

1,893‌

Morgan

Stanley

Capital

I

Trust,

Series 2015-MS1,

Class

A4,

ARM,

3.779%,

5/15/48 

1,440,000‌

1,377‌

Morgan

Stanley

Capital

I

Trust,

Series 2019-MEAD,

Class

D,

ARM,

3.177%,

11/10/36  (1)

2,090,000‌

1,767‌

Morgan

Stanley

Residential

Mortgage

Loan

Trust,

Series 2021-2,

Class

A9,

CMO,

ARM,

2.50%,

5/25/51  (1)

522,697‌

399‌

New

Residential

Mortgage

Loan

Trust,

Series 2019-NQM5,

Class

A1,

CMO,

ARM,

2.71%,

11/25/59  (1)

587,276‌

528‌

New

Residential

Mortgage

Loan

Trust,

Series 2022-INV1,

Class

A4,

CMO,

ARM,

3.00%,

3/25/52  (1)

1,836,761‌

1,460‌

OBX

Trust,

Series 2019-EXP3,

Class

1A9,

CMO,

ARM,

3.50%,

10/25/59  (1)

180,457‌

166‌

OBX

Trust,

Series 2019-EXP3,

Class

2A2,

CMO,

ARM,

1M

USD

LIBOR

+

1.10%,

5.489%,

10/25/59  (1)

86,157‌

83‌

Provident

Funding

Mortgage

Trust,

Series 2019-1,

Class

B1,

CMO,

ARM,

3.201%,

12/25/49  (1)

1,290,971‌

1,002‌

PSMC

Trust,

Series 2021-2,

Class

A3,

CMO,

ARM,

2.50%,

5/25/51  (1)

2,087,490‌

1,795‌

Sequoia

Mortgage

Trust,

Series 2018-CH2,

Class

A3,

CMO,

ARM,

4.00%,

6/25/48  (1)

188,585‌

174‌

SFO

Commercial

Mortgage

Trust,

Series 2021-555,

Class

B,

ARM,

1M

USD

LIBOR

+

1.50%,

5.818%,

5/15/38  (1)

1,560,000‌

1,384‌

SG

Residential

Mortgage

Trust,

Series 2019-3,

Class

A1,

CMO,

ARM,

2.703%,

9/25/59  (1)

42,910‌

41‌

Starwood

Mortgage

Residential

Trust,

Series 2019-INV1,

Class

A3,

CMO,

ARM,

2.916%,

9/27/49  (1)

677,592‌

638‌

Starwood

Mortgage

Residential

Trust,

Series 2020-INV1,

Class

A1,

CMO,

ARM,

1.027%,

11/25/55  (1)

406,481‌

374‌

Starwood

Mortgage

Residential

Trust,

Series 2021-2,

Class

A2,

CMO,

ARM,

1.172%,

5/25/65  (1)

337,042‌

311‌

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2021-DNA2,

Class

M1,

CMO,

ARM,

SOFR30A

+

0.80%,

4.728%,

8/25/33  (1)

130,542‌

130‌

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2021-DNA3,

Class

M2,

CMO,

ARM,

SOFR30A

+

2.10%,

6.028%,

10/25/33  (1)

835,000‌

819‌

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2021-DNA6,

Class

M2,

CMO,

ARM,

SOFR30A

+

1.50%,

5.428%,

10/25/41  (1)

1,100,000‌

1,045‌

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2021-DNA7,

Class

M1,

CMO,

ARM,

SOFR30A

+

0.85%,

4.778%,

11/25/41  (1)

1,829,059‌

1,797‌

T.

ROWE

PRICE

Balanced

Fund

45

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2021-HQA1,

Class

M1,

CMO,

ARM,

SOFR30A

+

0.70%,

4.628%,

8/25/33  (1)

147,139‌

146‌

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2022-DNA3,

Class

M1A,

CMO,

ARM,

SOFR30A

+

2.00%,

5.928%,

4/25/42  (1)

2,131,377‌

2,121‌

Structured

Agency

Credit

Risk

Debt

Notes,

Series 2022-HQA1,

Class

M1A,

CMO,

ARM,

SOFR30A

+

2.10%,

6.028%,

3/25/42  (1)

1,757,107‌

1,735‌

Towd

Point

Mortgage

Trust,

Series 2017-1,

Class

A1,

CMO,

ARM,

2.75%,

10/25/56  (1)

42,594‌

42‌

Towd

Point

Mortgage

Trust,

Series 2017-6,

Class

A1,

CMO,

ARM,

2.75%,

10/25/57  (1)

361,196‌

344‌

Towd

Point

Mortgage

Trust,

Series 2018-1,

Class

A1,

CMO,

ARM,

3.00%,

1/25/58  (1)

173,083‌

167‌

Verus

Securitization

Trust,

Series 2019-4,

Class

A1,

CMO,

STEP,

2.642%,

11/25/59  (1)

319,813‌

303‌

Verus

Securitization

Trust,

Series 2019-INV3,

Class

A1,

CMO,

ARM,

2.692%,

11/25/59  (1)

674,350‌

633‌

Verus

Securitization

Trust,

Series 2021-1,

Class

A1,

CMO,

ARM,

0.815%,

1/25/66  (1)

547,772‌

457‌

Verus

Securitization

Trust,

Series 2021-7,

Class

A1,

CMO,

ARM,

1.829%,

10/25/66  (1)

2,921,099‌

2,451‌

Wells

Fargo

Mortgage

Backed

Securities

Trust,

Series 2021-RR1,

Class

A1,

CMO,

ARM,

2.50%,

12/25/50  (1)

1,240,520‌

997‌

WFRBS

Commercial

Mortgage

Trust,

Series 2014-C19,

Class

B,

ARM,

4.723%,

3/15/47 

610,000‌

583‌

Total

Non-U.S.

Government

Mortgage-Backed

Securities

(Cost

$92,388)

83,531‌

PREFERRED

STOCKS

0.1%

CONSUMER

DISCRETIONARY

0.1%

Automobiles

0.1%

Dr.

Ing.

h.c.

F.

Porsche

(EUR)  (4)

41,825‌

4,221‌

Total

Consumer

Discretionary

4,221‌

Total

Preferred

Stocks

(Cost

$3,370)

4,221‌

U.S.

GOVERNMENT

&

AGENCY

MORTGAGE-BACKED

SECURITIES

8.5%

U.S.

Government

Agency

Obligations

6.2%

Federal

Home

Loan

Mortgage 

2.206%,

6/25/25 

748,096‌

722‌

2.50%,

5/1/30 

834,775‌

784‌

2.777%,

4/25/23 

6,738‌

7‌

2.952%,

2/25/27 

897,734‌

865‌

3.00%,

1/1/29

-

8/1/43 

3,381,769‌

3,090‌

T.

ROWE

PRICE

Balanced

Fund

46

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

3.50%,

3/1/42

-

3/1/46 

5,455,805‌

5,100‌

4.00%,

9/1/40

-

6/1/42 

1,715,009‌

1,651‌

4.50%,

6/1/39

-

5/1/42 

1,004,704‌

996‌

5.00%,

12/1/35

-

8/1/40 

451,870‌

460‌

5.50%,

1/1/38

-

12/1/39 

149,149‌

155‌

6.00%,

2/1/28

-

8/1/38 

16,854‌

16‌

6.50%,

8/1/32 

7,240‌

8‌

7.00%,

6/1/32 

12,355‌

13‌

Federal

Home

Loan

Mortgage,

ARM 

12M

USD

LIBOR

+

1.726%,

3.943%,

7/1/35 

22,482‌

23‌

12M

USD

LIBOR

+

1.75%,

2.127%,

2/1/35 

13,822‌

14‌

12M

USD

LIBOR

+

1.829%,

2.204%,

2/1/37 

21,027‌

21‌

12M

USD

LIBOR

+

1.93%,

4.187%,

12/1/36 

37,247‌

37‌

12M

USD

LIBOR

+

2.03%,

4.275%,

11/1/36 

21,557‌

21‌

1Y

CMT

+

2.25%,

3.928%,

10/1/36 

5,675‌

6‌

Federal

Home

Loan

Mortgage,

CMO,

IO,

4.50%,

5/25/50 

659,270‌

124‌

Federal

Home

Loan

Mortgage,

UMBS 

1.50%,

4/1/37 

1,374,169‌

1,190‌

2.00%,

3/1/42

-

5/1/52 

31,919,226‌

26,089‌

2.50%,

11/1/36

-

5/1/52 

34,162,447‌

29,075‌

3.00%,

11/1/34

-

3/1/52 

4,690,457‌

4,153‌

3.50%,

6/1/33 

301,987‌

292‌

4.00%,

12/1/49

-

8/1/52 

2,767,296‌

2,613‌

4.50%,

9/1/37

-

5/1/50 

224,219‌

219‌

5.00%,

10/1/51

-

9/1/52 

2,422,011‌

2,390‌

Federal

National

Mortgage

Assn. 

3.50%,

6/1/42

-

1/1/44 

2,304,344‌

2,151‌

4.00%,

11/1/40 

674,472‌

641‌

4.50%,

7/1/40 

495,741‌

479‌

Federal

National

Mortgage

Assn.,

ARM 

12M

USD

LIBOR

+

1.568%,

3.29%,

7/1/35 

14,803‌

14‌

12M

USD

LIBOR

+

1.855%,

2.105%,

1/1/37 

3,013‌

3‌

Federal

National

Mortgage

Assn.,

TBA,

UMBS,

1.50%,

1/15/38  (10)

3,820,000‌

3,307‌

Federal

National

Mortgage

Assn.,

UMBS 

1.50%,

4/1/37

-

1/1/42 

6,736,313‌

5,692‌

2.00%,

4/1/42

-

3/1/52 

46,630,163‌

38,109‌

2.50%,

10/1/31

-

7/1/52 

32,015,290‌

27,661‌

3.00%,

1/1/27

-

11/1/52 

34,864,138‌

31,502‌

3.50%,

11/1/26

-

1/1/52 

19,188,191‌

17,892‌

4.00%,

11/1/40

-

11/1/49 

12,862,257‌

12,303‌

4.50%,

4/1/37

-

8/1/52 

11,377,106‌

11,093‌

5.00%,

2/1/34

-

8/1/52 

2,095,373‌

2,119‌

5.50%,

2/1/35

-

5/1/44 

2,412,705‌

2,491‌

6.00%,

3/1/28

-

1/1/53 

10,235,100‌

10,423‌

6.50%,

3/1/24

-

8/1/38 

238,823‌

250‌

T.

ROWE

PRICE

Balanced

Fund

47

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

7.00%,

9/1/25

-

4/1/32 

17,178‌

16‌

7.50%,

9/1/26 

105‌

—‌

8.00%,

8/1/24

-

7/1/26 

186‌

—‌

UMBS,

TBA,

2.00%,

1/1/53  (10)

2,460,000‌

2,001‌

248,281‌

U.S.

Government

Obligations

2.3%

Government

National

Mortgage

Assn. 

2.00%,

3/20/51

-

5/20/52 

19,089,858‌

16,036‌

2.50%,

8/20/50

-

1/20/52 

18,853,333‌

16,362‌

3.00%,

9/15/42

-

6/20/52 

16,208,355‌

14,516‌

3.50%,

9/15/41

-

1/20/49 

12,247,231‌

11,440‌

4.00%,

2/15/41

-

10/20/52 

7,441,247‌

7,124‌

4.50%,

6/15/39

-

10/20/52 

7,732,104‌

7,567‌

5.00%,

12/20/34

-

6/20/49 

4,718,021‌

4,755‌

5.50%,

2/20/34

-

11/20/52 

5,173,395‌

5,232‌

6.00%,

8/20/34

-

4/15/36 

60,789‌

64‌

6.50%,

6/15/23

-

3/15/26 

5,870‌

6‌

7.50%,

3/15/23

-

9/15/26 

3,825‌

2‌

8.00%,

10/15/23

-

11/15/25 

5,058‌

5‌

8.50%,

6/20/25

-

6/20/26 

2,112‌

2‌

Government

National

Mortgage

Assn.,

ARM,

1Y

CMT

+

1.50%,

2.625%,

8/20/23 

64‌

—‌

Government

National

Mortgage

Assn.,

CMO 

3.00%,

11/20/47

-

12/20/47 

154,833‌

141‌

3.50%,

10/20/50 

1,010,000‌

848‌

Government

National

Mortgage

Assn.,

TBA  (10)

5.50%,

1/20/53 

5,093,000‌

5,121‌

6.00%,

1/20/53 

1,620,000‌

1,646‌

7.00%,

1/20/53 

1,130,000‌

1,161‌

92,028‌

Total

U.S.

Government

&

Agency

Mortgage-Backed

Securities

(Cost

$372,747)

340,309‌

U.S.

GOVERNMENT

AGENCY

OBLIGATIONS

(EXCLUDING

MORTGAGE-BACKED)

8.0%

U.S.

Treasury

Obligations

8.0%

U.S.

Treasury

Bonds,

1.125%,

5/15/40 

1,715,000‌

1,074‌

U.S.

Treasury

Bonds,

1.375%,

8/15/50 

2,415,000‌

1,345‌

U.S.

Treasury

Bonds,

1.75%,

8/15/41 

4,815,000‌

3,297‌

U.S.

Treasury

Bonds,

1.875%,

2/15/41 

4,545,000‌

3,213‌

U.S.

Treasury

Bonds,

1.875%,

2/15/51 

8,550,000‌

5,443‌

U.S.

Treasury

Bonds,

2.00%,

2/15/50 

24,845,000‌

16,440‌

U.S.

Treasury

Bonds,

2.00%,

8/15/51 

6,795,000‌

4,456‌

U.S.

Treasury

Bonds,

2.25%,

2/15/52 

4,225,000‌

2,948‌

U.S.

Treasury

Bonds,

2.375%,

5/15/51 

3,665,000‌

2,634‌

T.

ROWE

PRICE

Balanced

Fund

48

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

U.S.

Treasury

Bonds,

2.50%,

2/15/46 

2,975,000‌

2,225‌

U.S.

Treasury

Bonds,

2.75%,

8/15/47 

16,080,000‌

12,565‌

U.S.

Treasury

Bonds,

2.875%,

8/15/45  (11)

4,185,000‌

3,370‌

U.S.

Treasury

Bonds,

3.00%,

11/15/44 

2,990,000‌

2,468‌

U.S.

Treasury

Bonds,

3.00%,

5/15/45 

10,640,000‌

8,763‌

U.S.

Treasury

Bonds,

3.00%,

11/15/45 

11,185,000‌

9,198‌

U.S.

Treasury

Bonds,

3.00%,

2/15/47 

1,150,000‌

942‌

U.S.

Treasury

Bonds,

3.00%,

2/15/48 

2,000,000‌

1,640‌

U.S.

Treasury

Bonds,

3.00%,

8/15/48 

3,905,000‌

3,207‌

U.S.

Treasury

Bonds,

3.00%,

8/15/52 

1,565,000‌

1,296‌

U.S.

Treasury

Bonds,

3.375%,

8/15/42 

1,755,000‌

1,569‌

U.S.

Treasury

Bonds,

4.00%,

11/15/52 

3,985,000‌

4,002‌

U.S.

Treasury

Notes,

0.375%,

4/30/25 

1,250,000‌

1,141‌

U.S.

Treasury

Notes,

0.375%,

11/30/25 

29,325,000‌

26,228‌

U.S.

Treasury

Notes,

0.625%,

5/15/30 

16,700,000‌

13,209‌

U.S.

Treasury

Notes,

0.75%,

3/31/26 

5,970,000‌

5,351‌

U.S.

Treasury

Notes,

0.75%,

8/31/26 

7,815,000‌

6,917‌

U.S.

Treasury

Notes,

0.75%,

1/31/28 

1,185,000‌

1,008‌

U.S.

Treasury

Notes,

0.875%,

6/30/26 

41,745,000‌

37,310‌

U.S.

Treasury

Notes,

0.875%,

11/15/30 

7,500,000‌

5,993‌

U.S.

Treasury

Notes,

1.125%,

2/15/31 

7,555,000‌

6,154‌

U.S.

Treasury

Notes,

1.25%,

8/15/31 

9,060,000‌

7,351‌

U.S.

Treasury

Notes,

1.875%,

2/28/27 

36,390,000‌

33,320‌

U.S.

Treasury

Notes,

1.875%,

2/15/32 

7,175,000‌

6,081‌

U.S.

Treasury

Notes,

2.25%,

8/15/27 

27,540,000‌

25,470‌

U.S.

Treasury

Notes,

2.50%,

4/30/24 

1,640,000‌

1,593‌

U.S.

Treasury

Notes,

2.75%,

7/31/27 

6,145,000‌

5,813‌

U.S.

Treasury

Notes,

2.75%,

8/15/32 

16,360,000‌

14,880‌

U.S.

Treasury

Notes,

2.875%,

5/15/32 

2,930,000‌

2,699‌

U.S.

Treasury

Notes,

4.125%,

9/30/27 

8,000,000‌

8,027‌

U.S.

Treasury

Notes,

4.125%,

10/31/27 

16,110,000‌

16,165‌

U.S.

Treasury

Notes,

4.125%,

11/15/32 

2,850,000‌

2,907‌

319,712‌

Total

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed)

(Cost

$369,518)

319,712‌

SHORT-TERM

INVESTMENTS

2.1%

Money

Market

Funds

2.1%

T.

Rowe

Price

Treasury

Reserve

Fund,

4.27%  (2)(12)

81,871,846‌

81,872‌

Total

Short-Term

Investments

(Cost

$81,872)

81,872‌

T.

ROWE

PRICE

Balanced

Fund

49

Shares/Par

$

Value

(Cost

and

value

in

$000s)

‡

SECURITIES

LENDING

COLLATERAL

0.4%

INVESTMENTS

IN

A

POOLED

ACCOUNT

THROUGH

SECURITIES

LENDING

PROGRAM

WITH

JPMORGAN

CHASE

BANK

0.4%

Money

Market

Funds

0.4%

T.

Rowe

Price

Government

Reserve

Fund,

4.30%  (2)(12)

15,456,019‌

15,456‌

Total

Investments

in

a

Pooled

Account

through

Securities

Lending

Program

with

JPMorgan

Chase

Bank

15,456‌

Total

Securities

Lending

Collateral

(Cost

$15,456)

15,456‌

Total

Investments

in

Securities

101.1%

of

Net

Assets

(Cost

$3,259,476)

$

4,029,358‌

‡

Shares/Par

and

Notional

Amount

are

denominated

in

U.S.

dollars

unless

otherwise

noted.

(1)

Security

was

purchased

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933

and

may

be

resold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers.

Total

value

of

such

securities

at

period-end

amounts

to

$182,357

and

represents

4.6%

of

net

assets.

(2)

Affiliated

Companies

(3)

SEC

30-day

yield

(4)

Non-income

producing

(5)

See

Note

4.

All

or

a

portion

of

this

security

is

on

loan

at

December

31,

2022.

(6)

See

Note

2.

Level

3

in

fair

value

hierarchy.

(7)

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

may

have

registration

rights

for

certain

restricted

securities.

Any

costs

related

to

such

registration

are

generally

borne

by

the

issuer.

The

aggregate

value

of

restricted

securities

(excluding

144A

holdings)

at

period

end

amounts

to

$1,917

and

represents

0.0%

of

net

assets.

(8)

Security

is

a

fix-to-float

security,

which

carries

a

fixed

coupon

until

a

certain

date,

upon

which

it

switches

to

a

floating

rate.

Reference

rate

and

spread

are

provided

if

the

rate

is

currently

floating.

(9)

Insured

by

Assured

Guaranty

Municipal

Corporation

(10)

See

Note

4

.

To-Be-Announced

purchase

commitment.

Total

value

of

such

securities

at

period-end

amounts

to

$13,236

and

represents

0.3%

of

net

assets.

(11)

At

December

31,

2022,

all

or

a

portion

of

this

security

is

pledged

as

collateral

and/or

margin

deposit

to

cover

future

funding

obligations.

(12)

Seven-day

yield

T.

ROWE

PRICE

Balanced

Fund

50

.

.

.

.

.

.

.

.

.

.

1M

TSFR

One

month

term

SOFR

(Secured

overnight

financing

rate)

1M

USD

LIBOR

One

month

USD

LIBOR

(London

interbank

offered

rate)

3M

TSFR

Three

month

term

SOFR

(Secured

overnight

financing

rate)

3M

USD

LIBOR

Three

month

USD

LIBOR

(London

interbank

offered

rate)

12M

USD

LIBOR

Twelve

month

USD

LIBOR

(London

interbank

offered

rate)

1Y

CMT

One

year

U.S.

Treasury

note

constant

maturity

ADR

American

Depositary

Receipts

ARM

Adjustable

Rate

Mortgage

(ARM);

rate

shown

is

effective

rate

at

period-end.

The

rates

for

certain

ARMs

are

not

based

on

a

published

reference

rate

and

spread

but

may

be

determined

using

a

formula

based

on

the

rates

of

the

underlying

loans. 

AUD

Australian

Dollar

CAD

Canadian

Dollar

CDI

CHESS

or

CREST

Depositary

Interest

CHF

Swiss

Franc

CLO

Collateralized

Loan

Obligation

CMO

Collateralized

Mortgage

Obligation

DKK

Danish

Krone

EUR

Euro

FRN

Floating

Rate

Note

GBP

British

Pound

GO

General

Obligation

HHEFA

Health

&

Higher

Educational

Facility

Authority

HKD

Hong

Kong

Dollar

IDA

Industrial

Development

Authority/Agency

INR

Indian

Rupee

IO

Interest-only

security

for

which

the

fund

receives

interest

on

notional

principal

JPY

Japanese

Yen

KRW

South

Korean

Won

NOK

Norwegian

Krone

PFA

Public

Finance

Authority/Agency

PTT

Pass-Through

Trust

REIT

A

domestic

Real

Estate

Investment

Trust

whose

distributions

pass-through

with

original

tax

character

to

the

shareholder

SDR

Swedish

Depository

Receipts

SEK

Swedish

Krona

SGD

Singapore

Dollar

SOFR30A

30-day

Average

SOFR

(Secured

overnight

financing

rate)

STEP

Stepped

coupon

bond

for

which

the

coupon

rate

of

interest

adjusts

on

specified

date(s);

rate

shown

is

effective

rate

at

period-end.

TBA

To-Be-Announced

TWD

Taiwan

Dollar

UMBS

Uniform

Mortgage-Backed

Securities

T.

ROWE

PRICE

Balanced

Fund

51

.

.

.

.

.

.

.

.

.

.

VR

Variable

Rate;

rate

shown

is

effective

rate

at

period-end.

The

rates

for

certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

based

on

current

market

conditions.

T.

ROWE

PRICE

Balanced

Fund

52

FUTURES

CONTRACTS

($000s)

Expiration

Date

Notional

Amount

Value

and

Unrealized

Gain

(Loss)

Long,

215

U.S.

Treasury

Notes

five

ye

ar

contracts

3/23

23,205

$

1‌

Long,

61

U.S.

Treasury

Notes

ten

year

contracts

3/23

6,850

(19‌)

Long,

197

U.S.

Treasury

Notes

two

year

contracts

3/23

40,400

53‌

Net

payments

(receipts)

of

variation

margin

to

date

(93‌)

Variation

margin

receivable

(payable)

on

open

futures

contracts

$

(58‌)

T.

ROWE

PRICE

Balanced

Fund

53

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

year

ended

December

31,

2022.

Net

realized

gain

(loss),

investment

income,

change

in

net

unrealized

gain/loss,

and

purchase

and

sales

cost

reflect

all

activity

for

the

period

then

ended.

Affiliate

Net

Realized

Gain

(Loss)

Change

in

Net

Unrealized

Gain/Loss

Investment

Income

T.

Rowe

Price

Inflation

Protected

Bond

Fund

-

I

Class,

5.89% 

$

—‌

$

(2‌)

$

1‌

T.

Rowe

Price

Institutional

High

Yield

Fund

-

Institutional

Class,

8.21% 

(5,212‌)

(39,454‌)

14,218‌

T.

Rowe

Price

Limited

Duration

Inflation

Focused

Bond

Fund

-

I

Class,

5.66% 

(1,476‌)

391‌

—‌

T.

Rowe

Price

Real

Assets

Fund

-

I

Class 

—‌

(16,633‌)

2,977‌

T.

Rowe

Price

Government

Reserve

Fund,

4.30%

—‌

—‌

—‌++

T.

Rowe

Price

Treasury

Reserve

Fund,

4.27%

—‌

—‌

1,969‌

Totals

$

(6,688‌)#

$

(55,698‌)

$

19,165‌+

T.

ROWE

PRICE

Balanced

Fund

54

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

AFFILIATED

COMPANIES

(CONTINUED)

($000s)

Supplementary

Investment

Schedule

Affiliate

Value

12/31/21

Purchase

Cost

Sales

Cost

Value

12/31/22

T.

Rowe

Price

Inflation

Protected

Bond

Fund

-

I

Class,

5.89% 

$

16‌

$

—‌

$

—‌

$

14‌

T.

Rowe

Price

Institutional

High

Yield

Fund

-

Institutional

Class,

8.21% 

267,626‌

17,068‌

30,759‌

214,481‌

T.

Rowe

Price

Limited

Duration

Inflation

Focused

Bond

Fund

-

I

Class,

5.66% 

62,060‌

8‌

62,351‌

108‌

T.

Rowe

Price

Real

Assets

Fund

-

I

Class 

96,146‌

51,937‌

—‌

131,450‌

T.

Rowe

Price

Treasury

Reserve

Fund,

4.27%

306,936‌

  ¤

  ¤

81,872‌

T.

Rowe

Price

Government

Reserve

Fund,

4.30%

16,951‌

  ¤

  ¤

15,456‌

Total

$

443,381‌^

#

Capital

gain

distributions

from

underlying

Price

funds

represented

$347

of

the

net

realized

gain

(loss).

++

Excludes

earnings

on

securities

lending

collateral,

which

are

subject

to

rebates

and

fees

as

described

in

Note

4.

+

Investment

income

comprised

$19,165

of

dividend

income

and

$0

of

interest

income.

¤

Purchase

and

sale

information

not

shown

for

cash

management

funds.

^

The

cost

basis

of

investments

in

affiliated

companies

was

$466,236.

T.

ROWE

PRICE

Balanced

Fund

December

31,

2022

Statement

of

Assets

and

Liabilities

55

($000s,

except

shares

and

per

share

amounts)

Assets

Investments

in

securities,

at

value

(cost

$3,259,476)

$

4,029,358‌

Receivable

for

investment

securities

sold

13,680‌

Interest

and

dividends

receivable

9,569‌

Receivable

for

shares

sold

3,523‌

Foreign

currency

(cost

$841)

845‌

Cash

1‌

Other

assets

5,114‌

Total

assets

4,062,090‌

Liabilities

Payable

for

investment

securities

purchased

30,679‌

Payable

for

shares

redeemed

27,215‌

Obligation

to

return

securities

lending

collateral

15,456‌

Investment

management

fees

payable

1,364‌

Due

to

affiliates

335‌

Variation

margin

payable

on

futures

contracts

58‌

Payable

to

directors

3‌

Other

liabilities

442‌

Total

liabilities

75,552‌

NET

ASSETS

$

3,986,538‌

T.

ROWE

PRICE

Balanced

Fund

December

31,

2022

Statement

of

Assets

and

Liabilities

56

($000s,

except

shares

and

per

share

amounts)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Net

Assets

Consist

of:

Total

distributable

earnings

(loss)

$

683,861‌

Paid-in

capital

applicable

to

179,439,195

shares

of

$0.01

par

value

capital

stock

outstanding;

1,000,000,000

shares

authorized

3,302,677‌

NET

ASSETS

$

3,986,538‌

NET

ASSET

VALUE

PER

SHARE

Investor

Class

($2,317,767,607

/

104,293,927

shares

outstanding)

$

22.22‌

I

Class

($1,668,769,955

/

75,145,268

shares

outstanding)

$

22.21‌

T.

ROWE

PRICE

Balanced

Fund

Statement

of

Operations

57

($000s)

Year

Ended

12/31/22

Investment

Income

(Loss)

Income

Dividend

(net

of

foreign

taxes

of

$3,141)

$

71,391‌

    Interest

34,826‌

Securities

lending

236‌

Other

1‌

Total

income

106,454‌

Expenses

Investment

management

19,642‌

Shareholder

servicing

Investor

Class

$

4,451‌

I

Class

277‌

4,728‌

Prospectus

and

shareholder

reports

Investor

Class

66‌

I

Class

26‌

92‌

Custody

and

accounting

500‌

Registration

106‌

Legal

and

audit

59‌

Directors

12‌

Miscellaneous

94‌

Waived

/

paid

by

Price

Associates

(1,995‌)

Total

expenses

23,238‌

Net

investment

income

83,216‌

T.

ROWE

PRICE

Balanced

Fund

Statement

of

Operations

58

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Year

Ended

12/31/22

Realized

and

Unrealized

Gain

/

Loss

–

Net

realized

gain

(loss)

Securities

(net

of

foreign

taxes

of

$15)

36,095‌

Futures

(9,188‌)

Swaps

(681‌)

Foreign

currency

transactions

(767‌)

Capital

gain

distributions

from

mutual

funds

347‌

Net

realized

gain

25,806‌

Change

in

net

unrealized

gain

/

loss

Securities

(1,031,186‌)

Futures

92‌

Swaps

(20‌)

Other

assets

and

liabilities

denominated

in

foreign

currencies

(145‌)

Change

in

net

unrealized

gain

/

loss

(1,031,259‌)

Net

realized

and

unrealized

gain

/

loss

(1,005,453‌)

DECREASE

IN

NET

ASSETS

FROM

OPERATIONS

$

(922,237‌)

T.

ROWE

PRICE

Balanced

Fund

Statement

of

Changes

in

Net

Assets

59

($000s)

Year

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Ended

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

12/31/22

12/31/21

Increase

(Decrease)

in

Net

Assets

Operations

Net

investment

income

$

83,216‌

$

68,571‌

Net

realized

gain

25,806‌

466,008‌

Change

in

net

unrealized

gain

/

loss

(1,031,259‌)

126,373‌

Increase

(decrease)

in

net

assets

from

operations

(922,237‌)

660,952‌

Distributions

to

shareholders

Net

earnings

Investor

Class

(116,625‌)

(366,320‌)

I

Class

(86,391‌)

(100,921‌)

Decrease

in

net

assets

from

distributions

(203,016‌)

(467,241‌)

Capital

share

transactions

*

Shares

sold

Investor

Class

302,049‌

600,639‌

I

Class

1,158,107‌

307,136‌

Distributions

reinvested

Investor

Class

112,380‌

352,427‌

I

Class

83,453‌

99,141‌

Shares

redeemed

Investor

Class

(1,576,814‌)

(980,941‌)

I

Class

(364,462‌)

(132,322‌)

Increase

(decrease)

in

net

assets

from

capital

share

transactions

(285,287‌)

246,080‌

T.

ROWE

PRICE

Balanced

Fund

Statement

of

Changes

in

Net

Assets

60

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Year

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Ended

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

12/31/22

12/31/21

Net

Assets

Increase

(decrease)

during

period

(1,410,540‌)

439,791‌

Beginning

of

period

5,397,078‌

4,957,287‌

End

of

period

$

3,986,538‌

$

5,397,078‌

*Share

information

(000s)

Shares

sold

Investor

Class

12,101‌

20,759‌

I

Class

45,305‌

10,632‌

Distributions

reinvested

Investor

Class

4,973‌

12,616‌

I

Class

3,683‌

3,548‌

Shares

redeemed

Investor

Class

(62,548‌)

(33,627‌)

I

Class

(15,453‌)

(4,543‌)

Increase

(decrease)

in

shares

outstanding

(11,939‌)

9,385‌

T.

ROWE

PRICE

Balanced

Fund

NOTES

TO

FINANCIAL

STATEMENTS

61

T.

Rowe

Price

Balanced

Fund,

Inc.

(the

fund) is

registered

under

the

Investment

Company

Act

of

1940

(the

1940

Act)

as a

diversified,

open-end

management

investment

company. The

fund

seeks

to

provide

capital

growth,

current

income,

and

preservation

of

capital

through

a

portfolio

of

stocks

and

fixed-income

securities.

The

fund

has

two classes

of

shares:

the

Balanced

Fund

(Investor

Class)

and

the

Balanced

Fund–I

Class

(I

Class).

I

Class

shares

require

a

$500,000

initial

investment

minimum,

although

the

minimum

generally

is

waived

or

reduced

for

financial

intermediaries,

eligible

retirement

plans,

and

certain

other

accounts.

Prior

to

November

15,

2021,

the

initial

investment

minimum

was

$1

million

and

was

generally

waived

for

financial

intermediaries,

eligible

retirement

plans,

and

other

certain

accounts.

As

a

result

of

the

reduction

in

the

I

Class

minimum,

certain

assets

transferred

from

the

Investor

Class

to

the

I

Class.

This

transfer

of

shares

from

Investor

Class

to

I

Class

is

reflected

in

the

Statement

of

Changes

in

Net

Assets

within

the

Capital

shares

transactions

as

Shares

redeemed

and

Shares

sold,

respectively. Each

class

has

exclusive

voting

rights

on

matters

related

solely

to

that

class;

separate

voting

rights

on

matters

that

relate

to

both

classes;

and,

in

all

other

respects,

the

same

rights

and

obligations

as

the

other

class.

NOTE

1

-

SIGNIFICANT

ACCOUNTING

POLICIES 

Basis

of

Preparation

 The fund

is

an

investment

company

and

follows

accounting

and

reporting

guidance

in

the

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946

(ASC

946).

The

accompanying

financial

statements

were

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(GAAP),

including,

but

not

limited

to,

ASC

946.

GAAP

requires

the

use

of

estimates

made

by

management.

Management

believes

that

estimates

and

valuations

are

appropriate;

however,

actual

results

may

differ

from

those

estimates,

and

the

valuations

reflected

in

the

accompanying

financial

statements

may

differ

from

the

value

ultimately

realized

upon

sale

or

maturity.

Investment

Transactions,

Investment

Income,

and

Distributions

Investment

transactions

are

accounted

for

on

the

trade

date

basis.

Income

and

expenses

are

recorded

on

the

accrual

basis.

Realized

gains

and

losses

are

reported

on

the

identified

cost

basis.

Premiums

and

discounts

on

debt

securities

are

amortized

for

financial

reporting

purposes.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

Income

tax-related

interest

and

penalties,

if

incurred,

are

recorded

as

income

tax

expense.

Dividends

received

from

mutual

fund

investments

are

reflected

as

dividend

income;

capital

gain

distributions

are

reflected

as

realized

gain/loss.

Dividend

income

T.

ROWE

PRICE

Balanced

Fund

62

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Distributions

from

REITs

are

initially

recorded

as

dividend

income

and,

to

the

extent

such

represent

a

return

of

capital

or

capital

gain

for

tax

purposes,

are

reclassified

when

such

information

becomes

available.

Non-cash

dividends,

if

any,

are

recorded

at

the

fair

market

value

of

the

asset

received.

Proceeds

from

litigation

payments,

if

any,

are

included

in

either

net

realized

gain

(loss)

or

change

in

net

unrealized

gain/loss

from

securities.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Income

distributions,

if

any,

are

declared

and

paid

by

each

class quarterly.

A

capital

gain

distribution,

if

any, may

also

be

declared

and

paid

by

the

fund

annually.

Currency

Translation

 Assets,

including

investments,

and

liabilities

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

provided

by

an

outside

pricing

service.

Purchases

and

sales

of

securities,

income,

and

expenses

are

translated

into

U.S.

dollars

at

the

prevailing

exchange

rate

on

the

respective

date

of

such

transaction.

The

effect

of

changes

in

foreign

currency

exchange

rates

on

realized

and

unrealized

security

gains

and

losses

is

not

bifurcated

from

the

portion

attributable

to

changes

in

market

prices.

Class

Accounting

 Shareholder

servicing,

prospectus,

and

shareholder

report

expenses

incurred

by

each

class

are

charged

directly

to

the

class

to

which

they

relate.

Expenses

common

to all classes

and

investment

income

are

allocated

to

the

classes

based

upon

the

relative

daily

net

assets

of

each

class’s

settled

shares;

realized

and

unrealized

gains

and

losses

are

allocated

based

upon

the

relative

daily

net

assets

of

each

class’s

outstanding

shares.

Capital

Transactions

 Each

investor’s

interest

in

the

net

assets

of the

fund

is

represented

by

fund

shares. The

fund’s

net

asset

value

(NAV)

per

share

is

computed

at

the

close

of

the

New

York

Stock

Exchange

(NYSE),

normally

4

p.m.

ET,

each

day

the

NYSE

is

open

for

business.

However,

the

NAV

per

share

may

be

calculated

at

a

time

other

than

the

normal

close

of

the

NYSE

if

trading

on

the

NYSE

is

restricted,

if

the

NYSE

closes

earlier,

or

as

may

be

permitted

by

the

SEC.

Purchases

and

redemptions

of

fund

shares

are

transacted

at

the

next-computed

NAV

per

share,

after

receipt

of

the

transaction

order

by

T.

Rowe

Price

Associates,

Inc.,

or

its

agents.

New

Accounting

Guidance

 In

June

2022,

the

FASB

issued

Accounting

Standards

Update

(ASU),

ASU

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions,

which

clarifies

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

is

not

considered

in

measuring

fair

value.

The

amendments

under

this

ASU

are

effective

for

fiscal

T.

ROWE

PRICE

Balanced

Fund

63

years

beginning

after

December

15,

2023;

however,

the

fund

opted

to

early

adopt,

as

permitted,

effective

December

1,

2022. Adoption

of

the

guidance

did not

have

a

material

impact

on

the fund's

financial  statements.

The

FASB

issued

Accounting

Standards

Update

(ASU),

ASU

2020–04,

Reference

Rate

Reform

(Topic

848) –

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting

in

March

2020

and

ASU

2021-01

in

January

2021

which

provided

further

amendments

and

clarifications

to

Topic

848.

These

ASUs provide

optional,

temporary

relief

with

respect

to

the

financial

reporting

of

contracts

subject

to

certain

types

of

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR),

and

other

interbank-offered

based

reference

rates,

through December

31,

2022.

In

December,

2022,

FASB

issued

ASU

2022-06

which

defers

the

sunset

date

of

Topic

848

from

December

31,

2022,

to

December

31,

2024,

after

which

entities

will

no

longer

be

permitted

to

apply

the

relief

in

Topic

848.

Management

intends

to

rely

upon

the

relief

provided

under

Topic

848,

which

is

not

expected to

have

a

material

impact

on

the fund's

financial  statements.

Indemnification

 In

the

normal

course

of

business, the

fund

may

provide

indemnification

in

connection

with

its

officers

and

directors,

service

providers,

and/or

private

company

investments. The

fund’s

maximum

exposure

under

these

arrangements

is

unknown;

however,

the

risk

of

material

loss

is

currently

considered

to

be

remote.

NOTE

2

-

VALUATION 

Fair

Value

  The

fund’s

financial

instruments

are

valued

at

the

close

of

the

NYSE

and

are

reported

at

fair

value,

which

GAAP

defines

as

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date. The fund’s

Board

of

Directors

(the

Board)

has

designated

T.

Rowe

Price

Associates,

Inc.

as

the

fund’s

valuation

designee

(Valuation

Designee).

Subject

to

oversight

by

the

Board,

the

Valuation

Designee

performs

the

following

functions

in

performing

fair

value

determinations:

assesses

and

manages

valuation

risks;

establishes

and

applies

fair

value

methodologies;

tests

fair

value

methodologies;

and

evaluates

pricing

vendors

and

pricing

agents.

The

duties

and

responsibilities

of

the

Valuation

Designee

are

performed

by

its

Valuation

Committee. The

Valuation

Designee provides

periodic

reporting

to

the

Board

on

valuation

matters.

Various

valuation

techniques

and

inputs

are

used

to

determine

the

fair

value

of

financial

instruments.

GAAP

establishes

the

following

fair

value

hierarchy

that

categorizes

the

inputs

used

to

measure

fair

value:

T.

ROWE

PRICE

Balanced

Fund

64

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

(including

the Valuation

Designee’s assumptions

in

determining

fair

value)

Observable

inputs

are

developed

using

market

data,

such

as

publicly

available

information

about

actual

events

or

transactions,

and

reflect

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

Unobservable

inputs

are

those

for

which

market

data

are

not

available

and

are

developed

using

the

best

information

available

about

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

GAAP

requires

valuation

techniques

to

maximize

the

use

of

relevant

observable

inputs

and

minimize

the

use

of

unobservable

inputs.

When

multiple

inputs

are

used

to

derive

fair

value,

the

financial

instrument

is

assigned

to

the

level

within

the

fair

value

hierarchy

based

on

the

lowest-level

input

that

is

significant

to

the

fair

value

of

the

financial

instrument.

Input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level

but

rather

the

degree

of

judgment

used

in

determining

those

values.

Valuation

Techniques 

Equity

securities,

including

exchange-traded

funds, 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

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.

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 Valuation

Designee

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 the

fund’s

portfolio

securities.

Each

business

day,

the

Valuation

Designee uses

information

from

outside

pricing

services

to

evaluate

the

quoted

prices

of

portfolio

securities

and,

if

appropriate,

decide whether

it

is

necessary

to

adjust

quoted

prices

to

reflect

fair

value

by

reviewing

a

variety

of

factors,

including

T.

ROWE

PRICE

Balanced

Fund

65

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 Valuation

Designee

uses

outside

pricing

services

to

provide

it

with

quoted

prices

and

information

to

evaluate

or

adjust

those

prices.

The Valuation

Designee

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.

Debt

securities

generally

are

traded

in

the over-the-counter

(OTC)

market

and

are

valued

at

prices

furnished

by

independent

pricing

services

or

by

broker

dealers

who

make

markets

in

such

securities.

When

valuing

securities,

the

independent

pricing

services

consider

factors

such

as,

but

not

limited

to,

the

yield

or

price

of

bonds

of

comparable

quality,

coupon,

maturity,

and

type,

as

well

as

prices

quoted

by

dealers

who

make

markets

in

such

securities.

Investments

in

mutual

funds

are

valued

at

the

mutual

fund’s

closing

NAV

per

share

on

the

day

of

valuation.

Futures

contracts

are

valued

at

closing

settlement

prices.

Assets

and

liabilities

other

than

financial

instruments,

including

short-term

receivables

and

payables,

are

carried

at

cost,

or

estimated

realizable

value,

if

less,

which

approximates

fair

value. 

Investments

for

which

market

quotations are

not

readily

available

or

deemed

unreliable

are

valued

at

fair

value

as

determined

in

good

faith

by

the

Valuation

Designee.

The

Valuation

Designee

has

adopted

methodologies

for

determining

the

fair

value

of

investments

for

which

market

quotations

are

not

readily

available

or

deemed

unreliable,

including

the

use

of

other

pricing

sources.

Factors

used

in

determining

fair

value

vary

by

type

of

investment

and

may

include

market

or

investment

specific

considerations.

The

Valuation

Designee 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

Designee may

also

consider

other

valuation

methods

such

as

market-based

valuation

multiples;

a

discount

or

premium

from

market

value

of

a

similar,

freely

traded

security

of

the

same

issuer;

discounted

cash

flows;

yield

to

maturity;

or

some

combination.

Fair

value

determinations

are

reviewed

on

a

regular

basis.

Because

any

fair

value

determination

involves

a

significant

amount

of

judgment,

there

is

a

degree

of

subjectivity

inherent

in

such

pricing

decisions. Fair

value

prices

determined

by

the

Valuation

Designee could

differ

from

those

of

other

market

participants,

and

it

is

possible

that

the

fair

value

determined

for

a

security

may

be

materially

different

from

the

value

that

could

be

realized

upon

the

sale

of

that

security.

T.

ROWE

PRICE

Balanced

Fund

66

Valuation

Inputs

  The

following

table

summarizes

the

fund’s

financial

instruments,

based

on

the

inputs

used

to

determine

their

fair

values

on

December

31,

2022

(for

further

detail

by

category,

please

refer

to

the

accompanying

Portfolio

of

Investments):

NOTE

3

-

DERIVATIVE

INSTRUMENTS 

During

the

year ended

December

31,

2022,

the

fund

invested

in

derivative

instruments.

As

defined

by

GAAP,

a

derivative

is

a

financial

instrument

whose

value

is

derived

from

an

underlying

security

price,

foreign

exchange

rate,

interest

rate,

index

of

prices

or

rates,

or

other

variable;

it

requires

little

or

no

initial

investment

and

permits

or

requires

net

settlement.

The

fund

invests

in

derivatives

only

if

the

expected

risks

and

rewards

are

consistent

with

its

investment

objectives,

policies,

and

overall

risk

profile,

as

described

in

($000s)

Level

1

Level

2

Level

3

Total

Value

Assets

Fixed

Income

Securities

1

$

—‌

$

1,161,862‌

$

—‌

$

1,161,862‌

Bond

Mutual

Funds

214,603‌

—‌

—‌

214,603‌

Common

Stocks

1,710,503‌

707,474‌

963‌

2,418,940‌

Convertible

Preferred

Stocks

—‌

—‌

954‌

954‌

Equity

Mutual

Funds

131,450‌

—‌

—‌

131,450‌

Preferred

Stocks

—‌

4,221‌

—‌

4,221‌

Short-Term

Investments

81,872‌

—‌

—‌

81,872‌

Securities

Lending

Collateral

15,456‌

—‌

—‌

15,456‌

Total

Securities

2,153,884‌

1,873,557‌

1,917‌

4,029,358‌

Futures

Contracts*

54‌

—‌

—‌

54‌

Total

$

2,153,938‌

$

1,873,557‌

$

1,917‌

$

4,029,412‌

Liabilities

Futures

Contracts*

$

19‌

$

—‌

$

—‌

$

19‌

1

Includes

Asset-Backed

Securities,

Corporate

Bonds,

Foreign

Government

Obligations

&

Municipalities,

Municipal

Securities,

Non-U.S.

Government

Mortgage-Backed

Securities,

U.S.

Government

&

Agency

Mortgage-Backed

Securities

and

U.S.

Government

Agency

Obligations

(Excluding

Mortgage-Backed).

*

The

fair

value

presented

includes

cumulative

gain

(loss)

on

open

futures

contracts;

however,

the

net

value

reflected

on

the

accompanying

Portfolio

of

Investments

is

only

the

unsettled

variation

margin

receivable

(payable)

at

that

date.

T.

ROWE

PRICE

Balanced

Fund

67

its

prospectus

and

Statement

of

Additional

Information.

The

fund

may

use

derivatives

for

a

variety

of

purposes

and

may

use

them

to

establish

both

long

and

short

positions

within

the

fund’s

portfolio.

Potential

uses

include

to

hedge

against

declines

in

principal

value,

increase

yield,

invest

in

an

asset

with

greater

efficiency

and

at

a

lower

cost

than

is

possible

through

direct

investment,

to

enhance

return,

or

to

adjust

credit

exposure.

The

risks

associated

with

the

use

of

derivatives

are

different

from,

and

potentially

much

greater

than,

the

risks

associated

with

investing

directly

in

the

instruments

on

which

the

derivatives

are

based.

The

fund

values

its

derivatives

at

fair

value

and

recognizes

changes

in

fair

value

currently

in

its

results

of

operations.

Accordingly,

the

fund

does

not

follow

hedge

accounting,

even

for

derivatives

employed

as

economic

hedges.

Generally,

the

fund

accounts

for

its

derivatives

on

a

gross

basis.

It

does

not

offset

the

fair

value

of

derivative

liabilities

against

the

fair

value

of

derivative

assets

on

its

financial

statements,

nor

does

it

offset

the

fair

value

of

derivative

instruments

against

the

right

to

reclaim

or

obligation

to

return

collateral.

The

following

table

summarizes

the

fair

value

of

the

fund’s

derivative

instruments

held

as

of

December

31,

2022,

and

the

related

location

on

the

accompanying

Statement

of

Assets

and

Liabilities,

presented

by

primary

underlying

risk

exposure:

($000s)

Location

on

Statement

of

Assets

and

Liabilities

Fair

Value*

Assets

Interest

rate

derivatives

Futures

$

54‌

*

Total

$

54‌

*

Liabilities

Interest

rate

derivatives

Futures

$

19‌

Total

$

19‌

*

The

fair

value

presented

includes

cumulative

gain

(loss)

on

open

futures

contracts;

however,

the

value

reflected

on

the

accompanying

Statement

of

Assets

and

Liabilities

is

only

the

unsettled

variation

margin

receivable

(payable)

at

that

date.

T.

ROWE

PRICE

Balanced

Fund

68

Additionally,

the

amount

of

gains

and

losses

on

derivative

instruments

recognized

in

fund

earnings

during

the

year ended

December

31,

2022,

and

the

related

location

on

the

accompanying

Statement

of

Operations

is

summarized

in

the

following

table

by

primary

underlying

risk

exposure: 

Counterparty

Risk

and

Collateral

 The

fund

invests

in

exchange-traded

and/or

centrally

cleared

derivative

contracts,

such

as

futures,

exchange-traded

options,

and

centrally

cleared

swaps.

Counterparty

risk

on

such

derivatives

is

minimal

because

the

clearinghouse

provides

protection

against

counterparty

defaults.

For

futures

and

centrally

cleared

swaps,

the

fund

is

required

to

deposit

collateral

in

an

amount

specified

by

the

clearinghouse

and

the

clearing

firm

(margin

requirement),

and

the

margin

requirement

must

be

maintained

over

the

life

of

the

contract.

Each

clearinghouse

and

clearing

firm,

in

its

sole

discretion,

may

adjust

the

margin

requirements

applicable

to

the

fund.

Collateral may

be

in

the

form

of

cash

or

debt

securities

issued

by

the

U.S.

government

or

related

agencies.

Cash

posted

by

the

fund

is

reflected

as

cash

deposits

in

the

accompanying

financial

statements

and

generally

is

restricted

from

withdrawal

by

the

fund;

securities

posted

by

the

fund

are

so

noted

in

the

accompanying

Portfolio

of

Investments;

both

remain

in

the

fund’s

assets.

While

typically

not

sold

in

the

same

manner

as

equity

or

fixed

income

securities,

exchange-traded

or

centrally

cleared

derivatives

may

be

closed

out

only

on

the

exchange

or

clearinghouse

where

the

($000s)                                               

Location

of

Gain

(Loss)

on

Statement

of

Operations

Futures

Swaps

Total

Realized

Gain

(Loss)

Interest

rate

derivatives

$

(9,188‌)

$

—‌

$

(9,188‌)

Credit

derivatives

—‌

(681‌)

(681‌)

Total

$

(9,188‌)

$

(681‌)

$

(9,869‌)

Change

in

Unrealized

Gain

(Loss)

Interest

rate

derivatives

$

92‌

$

—‌

$

92‌

Credit

derivatives

—‌

(20‌)

(20‌)

Total

$

92‌

$

(20‌)

$

72‌

T.

ROWE

PRICE

Balanced

Fund

69

contracts

were

cleared.

This

ability

is

subject

to

the

liquidity

of

underlying

positions. As

of

December

31,

2022,

securities

valued

at $762,000

had

been

posted

by

the

fund

for

exchange-traded

and/or

centrally

cleared

derivatives. 

Futures

Contracts

 The

fund

is

subject

to interest

rate

risk in

the

normal

course

of

pursuing

its

investment

objectives

and

uses

futures

contracts

to

help

manage

such

risk.

The

fund

may

enter

into

futures

contracts

to

manage

exposure

to

interest

rates,

security

prices,

foreign

currencies,

and

credit

quality;

as

an

efficient

means

of

adjusting

exposure

to

all

or

part

of

a

target

market;

to

enhance

income;

as

a

cash

management

tool;

or

to

adjust

credit

exposure. A

futures

contract

provides

for

the

future

sale

by

one

party

and

purchase

by

another

of

a

specified

amount

of

a

specific

underlying

financial

instrument

at

an

agreed-upon

price,

date,

time,

and

place.

The

fund

currently

invests

only

in

exchange-traded

futures,

which

generally

are

standardized

as

to

maturity

date,

underlying

financial

instrument,

and

other

contract

terms.

Payments

are

made

or

received

by

the

fund

each

day

to

settle

daily

fluctuations

in

the

value

of

the

contract

(variation

margin),

which

reflect

changes

in

the

value

of

the

underlying

financial

instrument.

Variation

margin

is

recorded

as

unrealized

gain

or

loss

until

the

contract

is

closed.

The

value

of

a

futures

contract

included

in

net

assets

is

the

amount

of

unsettled

variation

margin;

net

variation

margin

receivable

is

reflected

as

an

asset

and

net

variation

margin

payable

is

reflected

as

a

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Risks

related

to

the

use

of

futures

contracts

include

possible

illiquidity

of

the

futures

markets,

contract

prices

that

can

be

highly

volatile

and

imperfectly

correlated

to

movements

in

hedged

security

values

and/or

interest

rates,

and

potential

losses

in

excess

of

the

fund’s

initial

investment.

During

the

year ended

December

31,

2022,

the

volume

of

the

fund’s

activity

in

futures,

based

on

underlying

notional

amounts,

was

generally

between

1%

and

3%

of

net

assets.

Swaps

 The

fund

is

subject

to

credit

risk in

the

normal

course

of

pursuing

its

investment

objectives

and

uses

swap

contracts

to

help

manage

such

risk.

The

fund

may

use

swaps

in

an

effort

to

manage

both

long

and

short

exposure

to

changes

in

interest

rates,

inflation

rates,

and

credit

quality;

to

adjust

overall

exposure

to

certain

markets;

to

enhance

total

return

or

protect

the

value

of

portfolio

securities;

to

serve

as

a

cash

management

tool;

or

to

adjust

credit

exposure.

Swap

agreements

can

be

settled

either

directly

with

the

counterparty

(bilateral

swap)

or

through

a

central

clearinghouse

(centrally

cleared

swap).

Fluctuations

in

the

fair

value

of

a

contract

are

reflected

in

unrealized

gain

or

loss

and

are

reclassified

to

realized

gain

or

loss

upon

contract

termination

or

cash

settlement.

Net

periodic

receipts

or

payments

required

by

a

contract

increase

or

decrease,

respectively,

the

value

of

the

contract

until

the

contractual

payment

date,

at

which

time

such

amounts

are

reclassified

from

unrealized

to

realized

gain

or

loss.

For

bilateral

swaps,

cash

payments

are

made

or

received

by

the

fund

on

a

periodic

basis

in

accordance

with

T.

ROWE

PRICE

Balanced

Fund

70

contract

terms;

unrealized

gain

on

contracts

and

premiums

paid

are

reflected

as

assets

and

unrealized

loss

on

contracts

and

premiums

received

are

reflected

as

liabilities

on

the

accompanying

Statement

of

Assets

and

Liabilities.

For

bilateral

swaps,

premiums

paid

or

received

are

amortized

over

the

life

of

the

swap

and

are

recognized

as

realized

gain

or

loss

in

the

Statement

of

Operations.

For

centrally

cleared

swaps,

payments

are

made

or

received

by

the

fund

each

day

to

settle

the

daily

fluctuation

in

the

value

of

the

contract

(variation

margin).

Accordingly,

the

value

of

a

centrally

cleared

swap

included

in

net

assets

is

the

unsettled

variation

margin;

net

variation

margin

receivable

is

reflected

as

an

asset

and

net

variation

margin

payable

is

reflected

as

a

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Credit

default

swaps

are

agreements

where

one

party

(the

protection

buyer)

agrees

to

make

periodic

payments

to

another

party

(the

protection

seller)

in

exchange

for

protection

against

specified

credit

events,

such

as

certain

defaults

and

bankruptcies

related

to

an

underlying

credit

instrument,

or

issuer

or

index

of

such

instruments.

Upon

occurrence

of

a

specified

credit

event,

the

protection

seller

is

required

to

pay

the

buyer

the

difference

between

the

notional

amount

of

the

swap

and

the

value

of

the

underlying

credit,

either

in

the

form

of

a

net

cash

settlement

or

by

paying

the

gross

notional

amount

and

accepting

delivery

of

the

relevant

underlying

credit.

For

credit

default

swaps

where

the

underlying

credit

is

an

index,

a

specified

credit

event

may

affect

all

or

individual

underlying

securities

included

in

the

index

and

will

be

settled

based

upon

the

relative

weighting

of

the

affected

underlying

security(ies)

within

the

index. Risks

related

to

the

use

of

credit

default

swaps

include

the

possible

inability

of

the

fund

to

accurately

assess

the

current

and

future

creditworthiness

of

underlying

issuers,

the

possible

failure

of

a

counterparty

to

perform

in

accordance

with

the

terms

of

the

swap

agreements,

potential

government

regulation

that

could

adversely

affect

the

fund’s

swap

investments,

and

potential

losses

in

excess

of

the

fund’s

initial

investment.

During

the

year ended

December

31,

2022,

the

volume

of

the

fund’s

activity

in

swaps,

based

on

underlying

notional

amounts,

was

generally

less

than

1%

of

net

assets.

NOTE

4

-

OTHER

INVESTMENT

TRANSACTIONS 

Consistent

with

its

investment

objective,

the

fund

engages

in

the

following

practices

to

manage

exposure

to

certain

risks

and/or

to

enhance

performance.

The

investment

objective,

policies,

program,

and

risk

factors

of

the

fund

are

described

more

fully

in

the

fund’s

prospectus

and

Statement

of

Additional

Information.

T.

ROWE

PRICE

Balanced

Fund

71

Emerging

and

Frontier

Markets

 The fund

invests,

either

directly

or

through

investments

in

other

T.

Rowe

Price

funds,

in

securities

of

companies

located

in,

issued

by

governments

of,

or

denominated

in

or

linked

to

the

currencies

of

emerging

and

frontier

market

countries.

Emerging

markets,

and

to

a

greater

extent

frontier

markets, tend

to

have

economic

structures

that

are

less

diverse

and

mature,

less

developed

legal

and

regulatory

regimes,

and

political

systems

that

are

less

stable,

than

those

of

developed

countries.

These

markets

may

be

subject

to

greater

political,

economic,

and

social

uncertainty

and

differing

accounting

standards

and

regulatory

environments

that

may

potentially

impact

the

fund’s

ability

to

buy

or

sell

certain

securities

or

repatriate

proceeds

to

U.S.

dollars.

Emerging

markets

securities

exchanges

are

more

likely

to

experience

delays

with

the

clearing

and

settling

of

trades,

as

well

as

the

custody

of

holdings

by

local

banks,

agents,

and

depositories.

Such

securities

are

often

subject

to

greater

price

volatility,

less

liquidity,

and

higher

rates

of

inflation

than

U.S.

securities.

Investing

in

frontier

markets

is

typically

significantly

riskier

than

investing

in

other

countries,

including

emerging

markets.

Restricted

Securities

 The

fund

invests

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

Prompt

sale

of

such

securities

at

an

acceptable

price

may

be

difficult

and

may

involve

substantial

delays

and

additional

costs.

Collateralized

Loan

Obligations 

 The

fund

invests

in

collateralized

loan

obligations

(CLOs)

which

are

entities

backed

by

a

diversified

pool

of

syndicated

bank

loans.

The

cash

flows

of

the

CLO

can

be

split

into

multiple

segments,

called

“tranches”

or

“classes”,

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segments,

which

are

the

subordinate

or

“equity”

tranches,

bear

the

greatest

risk

of

loss

from

defaults

in

the

underlying

assets

of

the

CLO

and

serve

to

protect

the

other,

more

senior,

tranches.

Senior

tranches

will

typically

have

higher

credit

ratings

and

lower

yields

than

the

securities

underlying

the

CLO.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses. 

Mortgage-Backed

Securities

 The

fund

invests

in

mortgage-backed

securities

(MBS

or

pass-through

certificates)

that

represent

an

interest

in

a

pool

of

specific

underlying

mortgage

loans

and

entitle

the

fund

to

the

periodic

payments

of

principal

and

interest

from

those

mortgages.

MBS

may

be

issued

by

government

agencies

or

corporations,

or

private

issuers.

Most

MBS

issued

by

government

agencies

are

guaranteed;

however,

the

degree

of

protection

differs

based

on

the

issuer.

The

fund

also

invests

in

stripped

MBS,

created

when

a

traditional

MBS

is

split

into

an

interest-only

(IO)

and

a

principal-

only

(PO)

strip.

MBS,

including

IOs

and

POs, are

sensitive

to

changes

in

economic

conditions

that

affect

the

rate

of

prepayments

and

defaults

on

the

underlying

mortgages;

T.

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PRICE

Balanced

Fund

72

accordingly,

the

value,

income,

and

related

cash

flows

from

MBS

may

be

more

volatile

than

other

debt

instruments.

IOs

also

risk

loss

of

invested

principal

from

faster-

than-anticipated

prepayments.

TBA

Purchase,

Sale

Commitments

and

Forward

Settling

Mortgage

Obligations

 The

fund

enters

into

to-be-announced

(TBA)

purchase

or

sale

commitments

(collectively,

TBA

transactions),

pursuant

to

which

it

agrees

to

purchase

or

sell,

respectively,

mortgage-backed

securities

for

a

fixed

unit

price,

with

payment

and

delivery

at

a

scheduled

future

date

beyond

the

customary

settlement

period

for

such

securities.

With

TBA

transactions,

the

particular

securities

to

be

received

or

delivered

by

the

fund

are

not

identified

at

the

trade

date;

however,

the

securities

must

meet

specified

terms,

including

rate

and

mortgage

term,

and

be

within

industry-accepted

“good

delivery”

standards.

The

fund

may

enter

into

TBA

transactions

with

the

intention

of

taking

possession

of

or

relinquishing

the

underlying

securities,

may

elect

to

extend

the

settlement

by

“rolling”

the

transaction,

and/or

may

use

TBA

transactions

to

gain

or

reduce

interim

exposure

to

underlying

securities.

Until

settlement,

the

fund

maintains

liquid

assets

sufficient

to

settle

its

commitment

to

purchase

a

TBA

or,

in

the

case

of

a

sale

commitment,

the

fund

maintains

an

entitlement

to

the

security

to

be

sold. 

To

mitigate

counterparty

risk,

the

fund

has

entered

into

Master

Securities

Forward

Transaction

Agreements

(MSFTA)

with

counterparties

that

provide

for

collateral

and

the

right

to

offset

amounts

due

to

or

from

those

counterparties

under

specified

conditions.

Subject

to

minimum

transfer

amounts,

collateral

requirements

are

determined

and

transfers

made

based

on

the

net

aggregate

unrealized

gain

or

loss

on

all

TBA

commitments

and

other

forward

settling

mortgage

obligations

with

a

particular

counterparty

(collectively,

MSFTA

Transactions).

At

any

time,

the

fund’s

risk

of

loss

from

a

particular

counterparty

related

to

its

MSFTA

Transactions

is

the

aggregate

unrealized

gain

on

appreciated

MSFTA

Transactions

in

excess

of

unrealized

loss

on

depreciated

MSFTA

Transactions

and

collateral

received,

if

any,

from

such

counterparty. As

of

December

31,

2022,

securities

valued

at

$114,000 had

been

posted

by

the

fund

to

counterparties

for

MSFTA

Transactions. No

collateral

was

pledged

by

counterparties

to

the

fund

for

MSFTA

Transactions

as

of

December

31,

2022. 

LIBOR

Transition

 The fund

may

invest

in

instruments

that

are

tied

to

reference

rates,

including

LIBOR.

Over

the

course

of

the

last

several

years,

global

regulators

have

indicated

an

intent

to

phase

out

the

use

of

LIBOR

and

similar

interbank

offered

rates

(IBOR).

While

publication

for

most

LIBOR

currencies

and

lesser-used

USD

LIBOR

settings

ceased

immediately

after

December

31,

2021,

remaining

USD

LIBOR

settings

will

continue

to

be

published

until

June

30,

2023.

There

remains

uncertainty

regarding

the

future

utilization

of

LIBOR

and

the

nature

of

any

replacement

rate.

Any

potential

effects

of

the

transition

away

from

LIBOR

on

the fund,

or

on

certain

instruments

in

T.

ROWE

PRICE

Balanced

Fund

73

which

the fund

invests,

cannot

yet

be

determined.

The

transition

process

may

result

in,

among

other

things,

an

increase

in

volatility

or

illiquidity

of

markets

for

instruments

that

currently

rely

on

LIBOR,

a

reduction

in

the

value

of

certain

instruments

held

by

the fund,

or

a

reduction

in

the

effectiveness

of

related

fund

transactions

such

as

hedges.

Any

such

effects

could

have

an

adverse

impact

on

the fund's

performance.

Securities

Lending

 The fund

may

lend

its

securities

to

approved

borrowers

to

earn

additional

income.

Its

securities

lending

activities

are

administered

by

a

lending

agent

in

accordance

with

a

securities

lending

agreement.

Security

loans

generally

do

not

have

stated

maturity

dates,

and

the

fund

may

recall

a

security

at

any

time.

The

fund

receives

collateral

in

the

form

of

cash

or

U.S.

government

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

the

value

of

loaned

securities;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

fund

the

next

business

day.

Cash

collateral

is

invested

in

accordance

with

investment

guidelines

approved

by

fund

management.

Additionally,

the

lending

agent

indemnifies

the

fund

against

losses

resulting

from

borrower

default.

Although

risk

is

mitigated

by

the

collateral

and

indemnification,

the

fund

could

experience

a

delay

in

recovering

its

securities

and

a

possible

loss

of

income

or

value

if

the

borrower

fails

to

return

the

securities,

collateral

investments

decline

in

value,

and

the

lending

agent

fails

to

perform.

Securities

lending

revenue

consists

of

earnings

on

invested

collateral

and

borrowing

fees,

net

of

any

rebates

to

the

borrower,

compensation

to

the

lending

agent,

and

other

administrative

costs.

In

accordance

with

GAAP,

investments

made

with

cash

collateral

are

reflected

in

the

accompanying

financial

statements,

but

collateral

received

in

the

form

of

securities

is

not.

At

December

31,

2022,

the

value

of

loaned

securities

was

$14,663,000;

the

value

of

cash

collateral

and

related

investments

was

$15,456,000.

Other 

Purchases

and

sales

of

portfolio

securities

other

than

short-term and

U.S.

government

securities

aggregated $1,983,570,000 and

$2,273,314,000,

respectively,

for

the

year ended

December

31,

2022.

Purchases

and

sales

of

U.S.

government

securities

aggregated

$2,359,916,000 and

$2,394,443,000,

respectively,

for

the

year ended

December

31,

2022.

NOTE

5

-

FEDERAL

INCOME

TAXES

Generally,

no

provision

for

federal

income

taxes

is

required

since

the

fund

intends

to

continue

to

qualify

as

a

regulated

investment

company

under

Subchapter

M

of

the

Internal

Revenue

Code

and

distribute

to

shareholders

all

of

its

taxable

income

and

gains.

Distributions

determined

in

accordance

with

federal

income

tax

regulations

may

differ

in

amount

or

character

from

net

investment

income

and

realized

gains

for

financial

reporting

purposes.

T.

ROWE

PRICE

Balanced

Fund

74

The fund

files

U.S.

federal,

state,

and

local

tax

returns

as

required. The

fund’s

tax

returns

are

subject

to

examination

by

the

relevant

tax

authorities

until

expiration

of

the

applicable

statute

of

limitations,

which

is

generally

three

years

after

the

filing

of

the

tax

return

but

which

can

be

extended

to

six

years

in

certain

circumstances.

Tax

returns

for

open

years

have

incorporated

no

uncertain

tax

positions

that

require

a

provision

for

income

taxes.

Capital

accounts

within

the

financial

reporting

records

are

adjusted

for

permanent

book/

tax

differences

to

reflect

tax

character

but

are

not

adjusted

for

temporary

differences.

The

permanent

book/tax

adjustments,

if

any,

have

no

impact

on

results

of

operations

or

net

assets.

The

permanent

book/tax

adjustments

relate

primarily

to

deemed

distributions

on

shareholder

redemptions.

The

tax

character

of

distributions

paid

for

the

periods

presented

was

as

follows:

At

December

31,

2022,

the

tax-basis

cost

of

investments

(including

derivatives,

if

any)

and

gross

unrealized

appreciation

and

depreciation

were

as

follows:

($000s)

December

31,

2022

December

31,

2021

Ordinary

income

(including

short-term

capital

gains,

if

any)

$

96,168‌

$

130,808‌

Long-term

capital

gain

106,848‌

336,433‌

Total

distributions

$

203,016‌

$

467,241‌

($000s)

Cost

of

investments

$

3,327,052‌

Unrealized

appreciation

$

1,059,180‌

Unrealized

depreciation

(356,956‌)

Net

unrealized

appreciation

(depreciation)

$

702,224‌

T.

ROWE

PRICE

Balanced

Fund

75

At

December

31,

2022,

the

tax-basis

components

of

accumulated

net

earnings

(loss)

were

as

follows:

Temporary

differences

between

book-basis

and

tax-basis

components

of

total

distributable

earnings

(loss)

arise

when

certain

items

of

income,

gain,

or

loss

are

recognized

in

different

periods

for

financial

statement

purposes

versus

for

tax

purposes;

these

differences

will

reverse

in

a

subsequent

reporting

period.

The

temporary

differences

relate

primarily

to

the

deferral

of

losses

from

wash

sales

and

the

realization

of

gains/losses

on

passive

foreign

investment

companies.

The

loss

carryforwards

and

deferrals

primarily

relate

to

post-October

loss

deferrals. The

fund

has

elected

to

defer

certain

losses

to

the

first

day

of

the

following

fiscal

year

for

post-October

capital

loss

deferrals.

NOTE

6

-

FOREIGN  TAXES

The

fund

is

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

it

invests.

Additionally,

capital

gains

realized

upon

disposition

of

securities

issued

in

or

by

certain

foreign

countries

are

subject

to

capital

gains

tax

imposed

by

those

countries.

All

taxes

are

computed

in

accordance

with

the

applicable

foreign

tax

law,

and,

to

the

extent

permitted,

capital

losses

are

used

to

offset

capital

gains.

Taxes

attributable

to

income

are

accrued

by

the

fund

as

a

reduction

of

income.

Current

and

deferred

tax

expense

attributable

to

capital

gains

is

reflected

as

a

component

of

realized

or

change

in

unrealized

gain/loss

on

securities

in

the

accompanying

financial

statements.

To

the

extent

that

the

fund

has

country

specific

capital

loss

carryforwards,

such

carryforwards

are

applied

against

net

unrealized

gains

when

determining

the

deferred

tax

liability.

Any

deferred

tax

liability

incurred

by

the

fund

is

included

in

either

Other

liabilities

or

Deferred

tax

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

($000s)

Undistributed

ordinary

income

$

427‌

Net

unrealized

appreciation

(depreciation)

702,224‌

Loss

carryforwards

and

deferrals

(18,790‌)

Total

distributable

earnings

(loss)

$

683,861‌

T.

ROWE

PRICE

Balanced

Fund

76

NOTE

7

-

RELATED

PARTY

TRANSACTIONS

The

fund

is

managed

by

T.

Rowe

Price

Associates,

Inc.

(Price

Associates),

a

wholly

owned

subsidiary

of

T.

Rowe

Price

Group,

Inc.

(Price

Group).

The

investment

management

agreement

between

the

fund

and

Price

Associates

provides

for

an

annual

investment

management

fee,

which

is

computed

daily

and

paid

monthly. The

fee

consists

of

an

individual

fund

fee,

equal

to

0.15%

of

the

fund’s

average

daily

net

assets,

and

a

group

fee.

The

group

fee

rate

is

calculated

based

on

the

combined

net

assets

of

certain

mutual

funds

sponsored

by

Price

Associates

(the

group)

applied

to

a

graduated

fee

schedule,

with

rates

ranging

from

0.48%

for

the

first

$1

billion

of

assets

to

0.260%

for

assets

in

excess

of

$845

billion.

The

fund’s

group

fee

is

determined

by

applying

the

group

fee

rate

to

the

fund’s

average

daily

net

assets. At

December

31,

2022,

the

effective

annual

group

fee

rate

was

0.29%.

The

I

Class

is

subject

to

an

operating

expense

limitation

(I

Class

Limit)

pursuant

to

which

Price

Associates

is

contractually

required

to

pay

all

operating

expenses

of

the

I

Class,

excluding

management

fees;

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage; non-recurring,

extraordinary expenses; and

acquired

fund

fees

and

expenses, to

the

extent

such

operating

expenses,

on

an

annualized

basis,

exceed

the

I

Class

Limit. This

agreement

will

continue

through

the

expense

limitation

date

indicated

in

the

table

below,

and

may

be

renewed,

revised,

or

revoked

only

with

approval

of

the

fund’s

Board.

The

I

Class

is

required

to

repay

Price

Associates

for

expenses

previously

paid

to

the

extent

the

class’s

net

assets

grow

or

expenses

decline

sufficiently

to

allow

repayment

without

causing

the

class’s

operating

expenses

(after

the

repayment

is

taken

into

account)

to

exceed

the

lesser

of:

(1)

the

I

Class

Limit

in

place

at

the

time

such

amounts

were

paid;

or

(2)

the

current

I

Class

Limit.

However,

no

repayment

will

be

made

more

than

three

years

after

the

date

of

a

payment

or

waiver.

In

addition,

the

fund

has

entered

into

service

agreements

with

Price

Associates

and

two

wholly

owned

subsidiaries

of

Price

Associates,

each

an

affiliate

of

the

fund

(collectively,

Price).

Price

Associates

provides

certain

accounting

and

administrative

services

to

the

fund.

T.

Rowe

Price

Services,

Inc.

provides

shareholder

and

administrative

services

in

its

capacity

as

the

fund’s

transfer

and

dividend-disbursing

agent.

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

provides

subaccounting

and

recordkeeping

services

for

certain

I

Class

Expense

limitation/I

Class

Limit

0.05%

Repayment

date

04/30/24

(Waived)/repaid

during

the

period

($000s)

$—

T.

ROWE

PRICE

Balanced

Fund

77

retirement

accounts

invested

in

the

Investor

Class.

For

the

year ended

December

31,

2022,

expenses

incurred

pursuant

to

these

service

agreements

were

$103,000 for

Price

Associates;

$1,876,000 for

T.

Rowe

Price

Services,

Inc.;

and

$1,015,000 for

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

All

amounts

due

to

and

due

from

Price,

exclusive

of

investment

management

fees

payable,

are

presented

net

on

the

accompanying

Statement

of

Assets

and

Liabilities.

The fund

may

invest

its

cash

reserves

in

certain

open-end

management

investment

companies

managed

by

Price

Associates

and

considered

affiliates

of

the

fund:

the

T.

Rowe

Price

Government

Reserve

Fund

or

the

T.

Rowe

Price

Treasury

Reserve

Fund,

organized

as

money

market

funds

(together,

the

Price

Reserve

Funds).

The

Price

Reserve

Funds

are

offered

as

short-term

investment

options

to

mutual

funds,

trusts,

and

other

accounts

managed

by

Price

Associates

or

its

affiliates

and

are

not

available

for

direct

purchase

by

members

of

the

public.

Cash

collateral

from

securities

lending,

if

any,

is

invested

in

the

T.

Rowe

Price

Government

Reserve Fund. The

Price

Reserve

Funds

pay

no

investment

management

fees.

The

fund

may

also

invest

in

certain

other

T.

Rowe

Price

funds

(Price

Funds)

as

a

means

of

gaining

efficient

and

cost-effective

exposure

to

certain

markets.

The

fund

does

not

invest

for

the

purpose

of

exercising

management

or

control;

however,

investments

by

the

fund

may

represent

a

significant

portion

of

an

underlying

Price

Fund’s

net

assets.

Each

underlying

Price

Fund

is

an

open-end

management

investment

company

managed

by

Price

Associates

and

is

considered

an

affiliate

of

the

fund.

To

ensure

that

the

fund

does

not

incur

duplicate

management

fees

(paid

by

the

underlying

Price

Fund(s)

and

the

fund),

Price

Associates

has

agreed

to

permanently

waive

a

portion

of

its

management

fee

charged

to

the

fund

in

an

amount

sufficient

to

fully

offset

that

portion

of

management

fees

paid

by

each

underlying

Price

Fund

related

to

the

fund’s

investment

therein.

Annual

management

fee

rates

and

amounts

waived

related

to

investments

in

the

underlying

Price

Fund(s)

for

the

year

ended

December

31,

2022,

are

as

follows:

($000s)

Effective

Management

Fee

Rate

Management

Fee

Waived

T.

Rowe

Price

Inflation

Protected

Bond

Fund

-

I

Class

0.17%

$

1‌

T.

Rowe

Price

Institutional

High

Yield

Fund

-

Institutional

Class

0.50%

1,166‌

T.

Rowe

Price

Limited

Duration

Inflation

Focused

Bond

Fund

-

I

Class

0.25%

84‌

T.

Rowe

Price

Real

Assets

Fund

-

I

Class

0.63%

744‌

Total

Management

Fee

Waived

$

1,995‌

T.

ROWE

PRICE

Balanced

Fund

78

Total

management

fee

waived

was

allocated

ratably

in

the

amounts

of

$1,233,000

and

$762,000 for

the

Investor

Class

and

I

Class,

respectively,

for

the

year ended

December

31,

2022.

The

fund may

participate

in

securities

purchase

and

sale

transactions

with

other

funds

or

accounts

advised

by

Price

Associates

(cross

trades),

in

accordance

with

procedures

adopted

by the

fund’s

Board

and

Securities

and

Exchange

Commission

rules,

which

require,

among

other

things,

that

such

purchase

and

sale

cross

trades

be

effected

at

the

independent

current

market

price

of

the

security.

During

the

year ended

December

31,

2022,

the

fund

had

no

purchases

or

sales

cross

trades

with

other

funds

or

accounts

advised

by

Price

Associates.

Price

Associates

has

voluntarily

agreed

to

reimburse

the

fund

from

its

own

resources

on

a

monthly

basis

for

the

cost

of

investment

research

embedded

in

the

cost

of

the

fund’s

securities

trades.

This

agreement

may

be

rescinded

at

any

time.

For

the

year ended

December

31,

2022,

this

reimbursement

amounted

to

$87,000,

which

is

included

in

Net

realized

gain

(loss)

on

Securities

in

the

Statement

of

Operations.

NOTE

8

-

OTHER

MATTERS

Unpredictable

events

such

as

environmental

or

natural

disasters,

war,

terrorism,

pandemics,

outbreaks

of

infectious

diseases,

and

similar

public

health

threats

may

significantly

affect

the

economy

and

the

markets

and

issuers

in

which

the fund

invests.

Certain

events

may

cause

instability

across

global

markets,

including

reduced

liquidity

and

disruptions

in

trading

markets,

while

some

events

may

affect

certain

geographic

regions,

countries,

sectors,

and

industries

more

significantly

than

others,

and

exacerbate

other

pre-existing

political,

social,

and

economic

risks.

Since

2020,

a

novel

strain

of

coronavirus

(COVID-19)

has

resulted

in

disruptions

to

global

business

activity

and

caused

significant

volatility

and

declines

in

global

financial

markets.

In

February

2022,

Russian

forces

entered

Ukraine

and

commenced

an

armed

conflict

leading

to

economic

sanctions

being

imposed

on

Russia

and

certain

of

its

citizens,

creating

impacts

on

Russian-related

stocks

and

debt

and

greater

volatility

in

global

markets.

These

are

recent

examples

of

global

events

which

may

have

a

negative

impact

on

the

values

of

certain

portfolio

holdings

or

the

fund’s

overall

performance.

Management

is

actively

monitoring

the

risks

and

financial

impacts

arising

from

these

events.

T.

ROWE

PRICE

Balanced

Fund

79

REPORT

OF

INDEPENDENT

REGISTERED

PUBLIC

ACCOUNTING

FIRM

To

the

Board

of

Directors

and

Shareholders

of

T.

Rowe

Price

Balanced

Fund,

Inc.

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

portfolio

of

investments,

of

T.

Rowe

Price

Balanced

Fund,

Inc.

(the

"Fund")

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

T.

ROWE

PRICE

Balanced

Fund

80

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodians,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.   

PricewaterhouseCoopers

LLP

Baltimore,

Maryland

February

16,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

T.

Rowe

Price

group

of

investment

companies

since

1973.

REPORT

OF

INDEPENDENT

REGISTERED

PUBLIC

ACCOUNTING

FIRM

(continued)

T.

ROWE

PRICE

Balanced

Fund

81

TAX

INFORMATION

(UNAUDITED)

FOR

THE

TAX

YEAR

ENDED 12/31/22

We

are

providing

this

information

as

required

by

the

Internal

Revenue

Code.

The

amounts

shown

may

differ

from

those

elsewhere

in

this

report

because

of

differences

between

tax

and

financial

reporting

requirements.

The

fund’s

distributions

to

shareholders

included:

$12,631,000 from

short-term

capital

gains 

$120,088,000 from

long-term

capital

gains,

subject

to

a

long-term

capital

gains

tax

rate

of

not

greater

than

20%

For

taxable

non-corporate

shareholders,

$49,602,000 of

the

fund's

income

represents

qualified

dividend

income

subject

to

a

long-term

capital

gains

tax

rate

of

not

greater

than

20%.

For

corporate

shareholders,

$21,383,000

of

the

fund's

income

qualifies

for

the

dividends-

received

deduction.  

For

individuals

and

certain

trusts

and

estates

which

are

entitled

to

claim

a

deduction

of

up

to

20%

of

their

combined

qualified

real

estate

investment

trust

(REIT)

dividends,

$696,000 of

the

fund's

income

qualifies

as

qualified

real

estate

investment

trust

(REIT)

dividends.

For

shareholders

subject

to

interest

expense

deduction

limitation

under

Section

163(j), $35,978,000 of

the

fund’s

income

qualifies

as

a

Section

163(j)

interest

dividend

and

can

be

treated

as

interest

income

for

purposes

of

Section

163(j),

subject

to

holding

period

requirements

and

other

limitations.

T.

ROWE

PRICE

Balanced

Fund

82

INFORMATION

ON

PROXY

VOTING

POLICIES,

PROCEDURES,

AND

RECORDS

A

description

of

the

policies

and

procedures

used

by

T.

Rowe

Price

funds

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

is

available

in

each

fund’s

Statement

of

Additional

Information.

You

may

request

this

document

by

calling

1-800-225-5132

or

by

accessing

the

SEC’s

website,

sec.gov.

The

description

of

our

proxy

voting

policies

and

procedures

is

also

available

on

our

corporate

website.

To

access

it,

please

visit

the

following

Web

page:

https://www.troweprice.com/corporate/us/en/utility/policies.html

Scroll

down

to

the

section

near

the

bottom

of

the

page

that

says,

“Proxy

Voting

Guidelines.”

Click

on

the

links

in

the

shaded

box.

Each

fund’s

most

recent

annual

proxy

voting

record

is

available

on

our

website

and

through

the

SEC’s

website.

To

access

it

through

T.

Rowe

Price,

visit

the

website

location

shown

above,

and

scroll

down

to

the

section

near

the

bottom

of

the

page

that

says,

“Proxy

Voting

Records.”

Click

on

the

Proxy

Voting

Records

link

in

the

shaded

box.

HOW

TO

OBTAIN

QUARTERLY

PORTFOLIO

HOLDINGS

The

fund

files

a

complete

schedule

of

portfolio

holdings

with

the

Securities

and

Exchange

Commission

(SEC)

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

fund’s

reports

on

Form

N-PORT

are

available

electronically

on

the

SEC’s

website

(sec.gov).

In

addition,

most

T.

Rowe

Price

funds

disclose

their

first

and

third

fiscal

quarter-end

holdings

on

troweprice.com

.

T.

ROWE

PRICE

Balanced

Fund

83

LIQUIDITY

RISK

MANAGEMENT

PROGRAM

In

accordance

with

Rule

22e-4

(Liquidity

Rule)

under

the

Investment

Company

Act

of

1940,

as

amended,

the

fund

has

established

a

liquidity

risk

management

program

(Liquidity

Program)

reasonably

designed

to

assess

and

manage

the

fund’s

liquidity

risk,

which

generally

represents

the

risk

that

the

fund

would

not

be

able

to

meet

redemption

requests

without

significant

dilution

of

remaining

investors’

interests

in

the

fund.

The

fund’s

Board

of

Directors

(Board)

has

appointed

the

fund’s

investment

adviser,

T.

Rowe

Price

Associates,

Inc.

(Adviser),

as

the

administrator

of

the

Liquidity

Program.

As

administrator,

the

Adviser

is

responsible

for

overseeing

the

day-to-day

operations

of

the

Liquidity

Program

and,

among

other

things,

is

responsible

for

assessing,

managing,

and

reviewing

with

the

Board

at

least

annually

the

liquidity

risk

of

each

T.

Rowe

Price

fund.

The

Adviser

has

delegated

oversight

of

the

Liquidity

Program

to

a

Liquidity

Risk

Committee

(LRC),

which

is

a

cross-functional

committee

composed

of

personnel

from

multiple

departments

within

the

Adviser.

The

Liquidity

Program’s

principal

objectives

include

supporting

the

T.

Rowe

Price

funds’

compliance

with

limits

on

investments

in

illiquid

assets

and

mitigating

the

risk

that

the

fund

will

be

unable

to

timely

meet

its

redemption

obligations.

The

Liquidity

Program

also

includes

a

number

of

elements

that

support

the

management

and

assessment

of

liquidity

risk,

including

an

annual

assessment

of

factors

that

influence

the

fund’s

liquidity

and

the

periodic

classification

and

reclassification

of

a

fund’s

investments

into

categories

that

reflect

the

LRC’s

assessment

of

their

relative

liquidity

under

current

market

conditions.

Under

the

Liquidity

Program,

every

investment

held

by

the

fund

is

classified

at

least

monthly

into

one

of

four

liquidity

categories

based

on

estimations

of

the

investment’s

ability

to

be

sold

during

designated

time

frames

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

As

required

by

the

Liquidity

Rule,

at

a

meeting

held

on

July

25,

2022,

the

Board

was

presented

with

an

annual

assessment

prepared

by

the

LRC,

on

behalf

of

the

Adviser,

that

addressed

the

operation

of

the

Liquidity

Program

and

assessed

its

adequacy

and

effectiveness

of

implementation,

including

any

material

changes

to

the

Liquidity

Program

and

the

determination

of

each

fund’s

Highly

Liquid

Investment

Minimum

(HLIM).

The

annual

assessment

included

consideration

of

the

following

factors,

as

applicable:

the

fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

normal

and

reasonably

foreseeable

stressed

conditions,

including

whether

the

investment

strategy

is

appropriate

for

an

open-end

fund,

the

extent

to

which

the

strategy

involves

a

relatively

concentrated

portfolio

or

large

positions

in

particular

issuers,

and

the

use

of

borrowings

for

investment

purposes

and

derivatives;

short-term

and

long-term

cash

flow

projections

covering

both

normal

and

reasonably

foreseeable

stressed

conditions;

and

holdings

of

cash

and

cash

equivalents,

as

well

as

available

borrowing

arrangements.

T.

ROWE

PRICE

Balanced

Fund

84

For

the

fund

and

other

T.

Rowe

Price

funds,

the

annual

assessment

incorporated

a

report

related

to

a

fund’s

holdings,

shareholder

and

portfolio

concentration,

any

borrowings

during

the

period,

cash

flow

projections,

and

other

relevant

data

for

the

period

of

April

1,

2021,

through

March

31,

2022.

The

report

described

the

methodology

for

classifying

a

fund’s

investments

(including

any

derivative

transactions)

into

one

of

four

liquidity

categories,

as

well

as

the

percentage

of

a

fund’s

investments

assigned

to

each

category.

It

also

explained

the

methodology

for

establishing

a

fund’s

HLIM

and

noted

that

the

LRC

reviews

the

HLIM

assigned

to

each

fund

no

less

frequently

than

annually.

During

the

period

covered

by

the

annual

assessment,

the

LRC

has

concluded,

and

reported

to

the

Board,

that

the

Liquidity

Program

continues

to

operate

adequately

and

effectively

and

is

reasonably

designed

to

assess

and

manage

the

fund’s

liquidity

risk.

LIQUIDITY

RISK

MANAGEMENT

PROGRAM

(continued)

T.

ROWE

PRICE

Balanced

Fund

85

ABOUT

THE

FUND'S

DIRECTORS

AND

OFFICERS

Your

fund

is

overseen

by

a

Board

of

Directors

(Board)

that

meets

regularly

to

review

a

wide

variety

of

matters

affecting

or

potentially

affecting

the

fund,

including

performance,

investment

programs,

compliance

matters,

advisory

fees

and

expenses,

service

providers,

and

business

and

regulatory

affairs.

The

Board

elects

the

fund’s

officers,

who

are

listed

in

the

final

table.

The

directors

who

are

also

employees

or

officers

of

T.

Rowe

Price

are

considered

to

be

“interested”

directors

as

defined

in

Section

2(a)(19)

of

the

1940

Act

because

of

their

relationships

with

T.

Rowe

Price

and

its

affiliates.

The

business

address

of

each

director

and

officer

is

100

East

Pratt

Street,

Baltimore,

Maryland

21202.

The

Statement

of

Additional

Information

includes

additional

information

about

the

fund

directors

and

is

available

without

charge

by

calling

a

T.

Rowe

Price

representative

at

1-800-638-5660.

INDEPENDENT

DIRECTORS

(a)

Name

(Year

of

Birth)

Year

Elected

[Number

of

T.

Rowe

Price

Portfolios

Overseen]

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

Teresa

Bryce

Bazemore

(1959)

2018

[205]

President

and

Chief

Executive

Officer,

Federal

Home

Loan

Bank

of

San

Francisco

(2021

to

present);

President,

Radian

Guaranty

(2008

to

2017);

Chief

Executive

Officer,

Bazemore

Consulting

LLC

(2018

to

2021);

Director,

Chimera

Investment

Corporation

(2017

to

2021);

Director,

First

Industrial

Realty

Trust

(2020

to

present);

Director,

Federal

Home

Loan

Bank

of

Pittsburgh

(2017

to

2019)

Ronald

J.

Daniels

(b)

(1959)

2018

[0]

President,

The

Johns

Hopkins

University

and

Professor,

Political

Science

Department,

The

Johns

Hopkins

University

(2009

to

present);

Director,

Lyndhurst

Holdings

(2015

to

present);

Director,

BridgeBio

Pharma,

Inc.

(2020

to

present)

Bruce

W.

Duncan

(1951)

2013

[205]

President,

Chief

Executive

Officer,

and

Director,

CyrusOne,

Inc.

(2020

to

2021);

Chief

Executive

Officer

and

Director

(2009

to

2016),

Chair

of

the

Board

(2016

to

2020),

and

President

(2009

to

2016),

First

Industrial

Realty

Trust,

owner

and

operator

of

industrial

properties;

Chair

of

the

Board

(2005

to

2016)

and

Director

(1999

to

2016),

Starwood

Hotels

&

Resorts,

a

hotel

and

leisure

company;

Member,

Investment

Company

Institute

Board

of

Governors

(2017

to

2019);

Member,

Independent

Directors

Council

Governing

Board

(2017

to

2019);

Senior

Advisor,

KKR

(2018

to

present);

Director,

Boston

Properties

(2016

to

present);

Director,

Marriott

International,

Inc.

(2016

to

2020)

Robert

J.

Gerrard,

Jr.

(1952)

2012

[205]

Advisory

Board

Member,

Pipeline

Crisis/Winning

Strategies,

a

collaborative

working

to

improve

opportunities

for

young

African

Americans

(1997

to

2016);

Chair

of

the

Board,

all

funds

(July

2018

to

present)

T.

ROWE

PRICE

Balanced

Fund

86

INTERESTED  DIRECTORS

(a)

Name

(Year

of

Birth)

Year

Elected

[Number

of

T.

Rowe

Price

Portfolios

Overseen]

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

Paul

F.

McBride

(1956)

2013

[205]

Advisory

Board

Member,

Vizzia

Technologies

(2015

to

present);

Board

Member,

Dunbar

Armored

(2012

to

2018)

Kellye

L.

Walker

(c)

(1966)

2021

[205]

Executive

Vice

President

and

Chief

Legal

Officer,

Eastman

Chemical

Company

(April

2020

to

present);

Executive

Vice

President

and

Chief

Legal

Officer,

Huntington

Ingalls

Industries,

Inc.

(January

2015

to

March

2020);

Director,

Lincoln

Electric

Company

(October

2020

to

present)

(a)

All

information

about

the

independent

directors

was

current

as

of

December

31,

2021,

unless

otherwise

indicated,

except

for

the

number

of

portfolios

overseen,

which

is

current

as

of

the

date

of

this

report.

(b)

Effective

April

27,

2022,

Mr.

Daniels

resigned

from

his

role

as

an

independent

director

of

the

Price

Funds.

(c)

Effective

November

8,

2021,

Ms.

Walker

was

appointed

as

an

independent

director

of

the

Price

Funds.

Name

(Year

of

Birth)

Year

Elected

[Number

of

T.

Rowe

Price

Portfolios

Overseen]

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

David

Oestreicher

(1967)

2018

[205]

Director,

Vice

President,

and

Secretary,

T.

Rowe

Price,

T.

Rowe

Price

Investment

Services,

Inc.,

T.

Rowe

Price

Retirement

Plan

Services,

Inc.,

and

T.

Rowe

Price

Services,

Inc.;

Director

and

Secretary,

T.

Rowe

Price

Investment

Management,

Inc.

(Price

Investment

Management);

Vice

President

and

Secretary,

T.

Rowe

Price

International

(Price

International);

Vice

President,

T.

Rowe

Price

Hong

Kong

(Price

Hong

Kong),

T. Rowe

Price

Japan

(Price

Japan),

and

T.

Rowe

Price

Singapore

(Price

Singapore);

General

Counsel,

Vice

President,

and

Secretary,

T.

Rowe

Price

Group,

Inc.;

Chair

of

the

Board,

Chief

Executive

Officer,

President,

and

Secretary,

T.

Rowe

Price

Trust

Company;

Principal

Executive

Officer

and

Executive

Vice

President,

all

funds

Robert

W.

Sharps,

CFA,

CPA

(b)

(1971)

2017

[0]

Director

and

Vice

President,

T.

Rowe

Price;

Director,

Price

Investment

Management;

Chief

Executive

Officer

and

President,

T.

Rowe

Price

Group,

Inc.;

Vice

President,

T.

Rowe

Price

Trust

Company

INDEPENDENT

DIRECTORS

(a)

(CONTINUED)

T.

ROWE

PRICE

Balanced

Fund

87

OFFICERS

Name

(Year

of

Birth)

Year

Elected

[Number

of

T.

Rowe

Price

Portfolios

Overseen]

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

Eric

L.

Veiel,

CFA

(1972)

2022

[205]

Director

and

Vice

President,

T.

Rowe

Price;

Vice

President,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

(a)

All

information

about

the

interested

directors

was

current

as

of

January

1,

2022,

unless

otherwise

indicated,

except

for

the

number

of

portfolios

overseen,

which

is

current

as

of

the

date

of

this

report.

(b)

Effective

February

3,

2022,

Mr.

Sharps

resigned

from

his

role

as

an

interested

director

of

the

Price

Funds.

Name

(Year

of

Birth)

Position

Held

With

Balanced

Fund

Principal

Occupation(s) 

Armando

(Dino)

Capasso

(1974)

Chief

Compliance

Officer

Chief

Compliance

Officer

and

Vice

President,

T.

Rowe

Price

and

Price

Investment

Management;

Vice

President,

T.

Rowe

Price

Group,

Inc.;

formerly,

Chief

Compliance

Officer,

PGIM

Investments

LLC

and

AST

Investment

Services,

Inc.

(ASTIS)

(to

2022);

Chief

Compliance

Officer,

PGIM

Retail

Funds

complex

and

Prudential

Insurance

Funds

(to

2022);

Vice

President

and

Deputy

Chief

Compliance

Officer,

PGIM

Investments

LLC

and

ASTIS

(to

2019);

Senior

Vice

President

and

Senior

Counsel,

Pacific

Investment

Management

Company

LLC

(to

2017) 

Kimberly

E.

DeDominicis

(1976)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

Price

International,

and

T.

Rowe

Price

Trust

Company

Alan

S.

Dupski,

CPA

(1982)

Principal

Financial

Officer,

Vice

President,

and

Treasurer

Vice

President,

Price

Investment

Management,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

Mark

S.

Finn,

CFA,

CPA

(1963)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

Gary

J.

Greb

(1961)

Vice

President

Vice

President,

Price

Investment

Management,

T.

Rowe

Price,

Price

International,

and

T.

Rowe

Price

Trust

Company

Unless

otherwise

noted,

officers

have

been

employees

of

T.

Rowe

Price

or

Price

International

for

at

least

5

years.

INTERESTED  DIRECTORS

(a)

(CONTINUED)

T.

ROWE

PRICE

Balanced

Fund

88

Name

(Year

of

Birth)

Position

Held

With

Balanced

Fund

Principal

Occupation(s) 

Cheryl

Hampton,

CPA

(1969)

Vice

President

Vice

President,

T.

Rowe

Price;

formerly,

Tax

Director,

Invesco

Ltd.

(to

2021);

Vice

President,

Oppenheimer

Funds,

Inc.

(to

2019)

Benjamin

Kersse,

CPA

(1989)

Vice

President

Vice

President,

T.

Rowe

Price

Paul

J.

Krug,

CPA

(1964)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

Robert

M.

Larkins,

CFA

(1973)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

Wyatt

A.

Lee,

CFA

(1971)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

Raymond

A.

Mills,

Ph.D.,

CFA

(1960)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

Price

International,

and

T.

Rowe

Price

Trust

Company

Sébastien

Page 

(1977)

Vice

President

Vice

President,

T.

Rowe

Price

and

T.

Rowe

Price

Group,

Inc.

Fran

M.

Pollack-Matz

(1961)

Vice

President

and

Secretary 

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

T.

Rowe

Price

Investment

Services,

Inc.,

and

T.

Rowe

Price

Services,

Inc.

Shannon

H.

Rauser

(1987)

Assistant

Secretary 

Assistant

Vice

President,

T.

Rowe

Price

Rodney

M.

Rayburn,

CFA

(1970)

Vice

President

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

and

T.

Rowe

Price

Trust

Company

Charles

M.

Shriver,

CFA

(1967)

Co-president 

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

Price

International,

and

T.

Rowe

Price

Trust

Company

Guido

F.

Stubenrauch,

CFA

(1970)

Vice

President

Vice

President,

T.

Rowe

Price

and

T.

Rowe

Price

Group,

Inc.

Toby

M.

Thompson,

CAIA,

CFA

(1971)

Co-president 

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

Price

International,

and

T.

Rowe

Price

Trust

Company

Megan

Warren

(1968)

Vice

President

OFAC

Sanctions

Compliance

Officer

and

Vice

President,

Price

Investment

Management;

Vice

President,

T.

Rowe

Price,

T.

Rowe

Price

Group,

Inc.,

T.

Rowe

Price

Retirement

Plan

Services,

Inc.,

T.

Rowe

Price

Services,

Inc.,

and

T.

Rowe

Price

Trust

Company

Unless

otherwise

noted,

officers

have

been

employees

of

T.

Rowe

Price

or

Price

International

for

at

least

5

years.

OFFICERS

(CONTINUED)

T.

Rowe

Price

Investment

Services,

Inc.

|

100

East

Pratt

Street

|

Baltimore,

MD

21202-1009

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under

the

Investment

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Brokerage

services

are

provided

by

T.

Rowe

Price

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Services,

Inc.,

member

FINRA/SIPC.

Brokerage

accounts

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carried

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Pershing

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a

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member

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T.

Rowe

Price

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and

T.

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services

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202302-2582023

F68-050

2/23

Item 1. (b) Notice pursuant to Rule 30e-3.

Not applicable.

Item 2. Code of Ethics.

The registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Directors has determined that Ms. Teresa Bryce Bazemore qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Bazemore is considered independent for purposes of Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) – (d)    Aggregate fees billed for the last two fiscal years for professional services rendered to, or on behalf of, the registrant by the registrant’s principal accountant were as follows:

	2022		2021
Audit Fees	$	30,858	$	29,941
Audit-Related Fees		-		-
Tax Fees		-		4,497
All Other Fees		-		-

Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements and specifically include the issuance of a report on internal controls and, if applicable, agreed-upon procedures related to fund acquisitions. Tax fees include amounts related to services for tax compliance, tax planning, and tax advice. The nature of these services specifically includes the review of distribution calculations and the preparation of Federal, state, and excise tax returns. All other fees include the registrant’s pro-rata share of amounts for agreed-upon procedures in conjunction with service contract approvals by the registrant’s Board of Directors/Trustees.

(e)(1)   The registrant’s audit committee has adopted a policy whereby audit and non-audit services performed by the registrant’s principal accountant for the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings. If such a service is required between regularly scheduled audit committee meetings, pre-approval may be authorized by one audit committee member with ratification at the next scheduled audit committee meeting. Waiver of pre-approval for audit or non-audit services requiring fees of a de minimis amount is not permitted.

(2)     No services included in (b) – (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)    Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g)    The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $2,037,000 and $3,732,000, respectively.

(h)    All non-audit services rendered in (g) above were pre-approved by the registrant’s audit committee. Accordingly, these services were considered by the registrant’s audit committee in maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b)    The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.

(2) Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.

(3) Written solicitation to repurchase securities issued by closed-end companies: not applicable.

(b) A certification by the registrant’s principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

T. Rowe Price Balanced Fund, Inc.
By	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	February 16, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	February 16, 2023
By	/s/ Alan S. Dupski
	Alan S. Dupski
	Principal Financial Officer
Date	February 16, 2023