T. Rowe Price Mid-Cap Growth Fund Advisor Class (PAMCX)
Filed: 25 Nov 19, 12:25pm
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| September 30, 2019(Unaudited) | ||
| Portfolio of Investments‡ | Shares | $ Value |
| (Cost and value in $000s) | ||
| COMMON STOCKS 93.4% | ||
| COMMUNICATION SERVICES 1.5% | ||
| Interactive Media & Services 1.5% | ||
| IAC/InterActiveCorp (1) | 2,300,000 | 501,331 |
| Total Communication Services | 501,331 | |
| CONSUMER DISCRETIONARY 14.2% | ||
| Auto Components 1.3% | ||
| Aptiv | 3,850,000 | 336,567 |
| Visteon (1)(2) | 1,400,000 | 115,556 |
| 452,123 | ||
| Diversified Consumer Services 0.7% | ||
| ServiceMaster Global Holdings (1) | 3,975,482 | 222,229 |
| 222,229 | ||
| Hotels, Restaurants & Leisure 5.5% | ||
| Darden Restaurants | 875,000 | 103,442 |
| Dunkin' Brands Group | 2,500,000 | 198,400 |
| Hilton Worldwide Holdings | 2,500,000 | 232,775 |
| Marriott International, Class A | 1,500,000 | 186,555 |
| MGM Resorts International | 13,750,000 | 381,150 |
| Norwegian Cruise Line Holdings (1) | 8,500,000 | 440,045 |
| Vail Resorts | 1,250,000 | 284,450 |
| 1,826,817 | ||
| Internet & Direct Marketing Retail 0.0% | ||
| Chewy, Class A (1) | 550,000 | 13,519 |
| 13,519 | ||
| Multiline Retail 2.5% | ||
| Dollar General | 3,200,000 | 508,608 |
| Dollar Tree (1) | 2,750,000 | 313,940 |
| 822,548 | ||
| Specialty Retail 2.9% | ||
| Burlington Stores (1) | 2,000,000 | 399,640 |
| CarMax (1) | 1,500,000 | 132,000 |
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Michaels (1) | 2,250,000 | 22,028 |
| O'Reilly Automotive (1) | 500,000 | 199,255 |
| Tiffany | 1,000,000 | 92,630 |
| Ulta Beauty (1) | 450,000 | 112,792 |
| 958,345 | ||
| Textiles, Apparel & Luxury Goods 1.3% | ||
| Levi Strauss, Class A (2) | 3,000,000 | 57,120 |
| Tapestry | 9,750,000 | 253,988 |
| VF | 1,281,370 | 114,029 |
| 425,137 | ||
| Total Consumer Discretionary | 4,720,718 | |
| CONSUMER STAPLES 2.4% | ||
| Food & Staples Retailing 1.4% | ||
| Casey's General Stores (2) | 1,900,000 | 306,204 |
| Kroger | 2,500,000 | 64,450 |
| Sprouts Farmers Market (1)(2) | 6,000,000 | 116,040 |
| 486,694 | ||
| Food Products 1.0% | ||
| Conagra Brands | 4,250,000 | 130,390 |
| TreeHouse Foods (1)(2) | 3,500,000 | 194,075 |
| 324,465 | ||
| Total Consumer Staples | 811,159 | |
| ENERGY 2.3% | ||
| Oil, Gas & Consumable Fuels 2.3% | ||
| Cabot Oil & Gas | 6,000,000 | 105,420 |
| Concho Resources | 5,000,000 | 339,500 |
| Continental Resources (1) | 3,000,000 | 92,370 |
| Pioneer Natural Resources | 1,400,000 | 176,078 |
| Venture Global LNG, Series B, Acquisition Date: 3/8/18, | ||
| Cost $4,038 (1)(3)(4) | 1,337 | 6,953 |
| Venture Global LNG, Series C, Acquisition Date: 10/16/17 - | ||
| 3/8/18, Cost $33,184 (1)(3)(4) | 9,021 | 46,909 |
| Total Energy | 767,230 | |
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| FINANCIALS 8.2% | ||
| Banks 0.9% | ||
| Fifth Third Bancorp | 5,000,000 | 136,900 |
| Webster Financial | 3,250,000 | 152,328 |
| 289,228 | ||
| Capital Markets 3.2% | ||
| Cboe Global Markets | 2,500,000 | 287,275 |
| KKR, Class A | 7,000,000 | 187,950 |
| MarketAxess Holdings | 385,000 | 126,087 |
| TD Ameritrade Holding | 8,500,000 | 396,950 |
| Tradeweb Markets, Class A | 1,500,000 | 55,470 |
| 1,053,732 | ||
| Consumer Finance 0.2% | ||
| SLM | 7,500,000 | 66,188 |
| 66,188 | ||
| Insurance 3.9% | ||
| Assurant | 2,000,000 | 251,640 |
| Axis Capital Holdings | 2,000,000 | 133,440 |
| Fidelity National Financial | 8,000,000 | 355,280 |
| Progressive | 1,250,000 | 96,562 |
| Willis Towers Watson | 2,500,000 | 482,425 |
| 1,319,347 | ||
| Total Financials | 2,728,495 | |
| HEALTH CARE 18.5% | ||
| Biotechnology 2.6% | ||
| Alkermes (1) | 7,500,000 | 146,325 |
| Alnylam Pharmaceuticals (1) | 1,200,000 | 96,504 |
| Argenx, ADR (1) | 500,000 | 56,980 |
| Ascendis Pharma, ADR (1) | 425,000 | 40,936 |
| Incyte (1) | 1,825,000 | 135,470 |
| Neurocrine Biosciences (1) | 1,300,000 | 117,143 |
| Sage Therapeutics (1) | 500,000 | 70,145 |
| Sarepta Therapeutics (1) | 500,000 | 37,660 |
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Seattle Genetics (1) | 2,100,000 | 179,340 |
| 880,503 | ||
| Health Care Equipment & Supplies 8.5% | ||
| Alcon (1) | 2,750,000 | 160,298 |
| Cooper | 2,200,000 | 653,400 |
| Exact Sciences (1) | 1,300,000 | 117,481 |
| Hologic (1) | 12,750,000 | 643,747 |
| ICU Medical (1) | 800,000 | 127,680 |
| IDEXX Laboratories (1) | 375,973 | 102,238 |
| Teleflex (2) | 2,350,000 | 798,412 |
| West Pharmaceutical Services | 1,490,274 | 211,351 |
| 2,814,607 | ||
| Health Care Providers & Services 0.6% | ||
| Acadia Healthcare (1)(2) | 5,000,000 | 155,400 |
| MEDNAX (1) | 1,500,000 | 33,930 |
| 189,330 | ||
| Health Care Technology 0.1% | ||
| Veeva Systems, Class A (1) | 300,000 | 45,807 |
| 45,807 | ||
| Life Sciences Tools & Services 4.1% | ||
| Agilent Technologies | 7,000,000 | 536,410 |
| Avantor (1) | 11,500,000 | 169,050 |
| Bruker (2) | 9,400,000 | 412,942 |
| PRA Health Sciences (1) | 2,500,000 | 248,075 |
| 1,366,477 | ||
| Pharmaceuticals 2.6% | ||
| Amneal Pharmaceuticals (1) | 5,100,000 | 14,790 |
| Catalent (1)(2) | 8,000,000 | 381,280 |
| Elanco Animal Health (1) | 8,250,000 | 219,368 |
| Perrigo | 4,250,000 | 237,532 |
| 852,970 | ||
| Total Health Care | 6,149,694 | |
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| INDUSTRIALS & BUSINESS SERVICES 18.1% | ||
| Aerospace & Defense 3.9% | ||
| BWX Technologies | 3,200,000 | 183,072 |
| L3Harris Technologies | 2,750,000 | 573,760 |
| Textron | 11,000,000 | 538,560 |
| 1,295,392 | ||
| Airlines 0.8% | ||
| Alaska Air Group | 1,500,000 | 97,365 |
| United Airlines Holdings (1) | 2,000,000 | 176,820 |
| 274,185 | ||
| Building Products 0.2% | ||
| Allegion | 750,000 | 77,738 |
| 77,738 | ||
| Commercial Services & Supplies 0.5% | ||
| Waste Connections | 1,750,000 | 161,000 |
| 161,000 | ||
| Electrical Equipment 1.3% | ||
| Sensata Technologies Holding (1)(2) | 8,500,000 | 425,510 |
| 425,510 | ||
| Industrial Conglomerates 1.1% | ||
| Roper Technologies | 1,000,000 | 356,600 |
| 356,600 | ||
| Machinery 4.8% | ||
| Colfax (1)(2) | 8,250,000 | 239,745 |
| Fortive | 4,500,000 | 308,520 |
| Gardner Denver Holdings (1)(2) | 12,250,000 | 346,552 |
| IDEX | 2,500,000 | 409,700 |
| Xylem | 3,750,000 | 298,575 |
| 1,603,092 | ||
| Professional Services 4.6% | ||
| Clarivate Analytics (1) | 6,360,599 | 107,303 |
| CoStar Group (1) | 500,000 | 296,600 |
| Equifax | 806,920 | 113,509 |
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| IHS Markit (1) | 3,750,000 | 250,800 |
| TransUnion | 4,250,000 | 344,718 |
| Verisk Analytics | 2,500,000 | 395,350 |
| 1,508,280 | ||
| Road & Rail 0.9% | ||
| JB Hunt Transport Services | 2,750,000 | 304,288 |
| 304,288 | ||
| Total Industrials & Business Services | 6,006,085 | |
| INFORMATION TECHNOLOGY 19.9% | ||
| Electronic Equipment, Instruments & Components 3.4% | ||
| Cognex | 1,389,601 | 68,271 |
| Corning | 10,000,000 | 285,200 |
| FLIR Systems | 1,750,000 | 92,033 |
| Keysight Technologies (1) | 5,000,000 | 486,250 |
| National Instruments | 4,500,000 | 188,955 |
| 1,120,709 | ||
| IT Services 6.6% | ||
| Black Knight (1) | 2,750,000 | 167,915 |
| CoreLogic (1)(2) | 6,150,000 | 284,560 |
| Fidelity National Information Services | 2,500,000 | 331,900 |
| Fiserv (1) | 4,000,000 | 414,360 |
| FleetCor Technologies (1) | 1,300,000 | 372,814 |
| Gartner (1) | 1,000,000 | 142,990 |
| Global Payments | 2,870,200 | 456,362 |
| Shopify, Class A (1) | 65,000 | 20,258 |
| 2,191,159 | ||
| Semiconductors & Semiconductor Equipment 5.1% | ||
| Entegris | 3,100,000 | 145,886 |
| Marvell Technology Group | 13,750,000 | 343,337 |
| Maxim Integrated Products | 4,000,000 | 231,640 |
| Microchip Technology | 5,800,000 | 538,878 |
| Skyworks Solutions | 2,500,000 | 198,125 |
| Xilinx | 2,400,000 | 230,160 |
| 1,688,026 | ||
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| Software 4.8% | ||
| Atlassian, Class A (1) | 1,800,000 | 225,792 |
| Ceridian HCM Holding (1) | 3,525,000 | 174,029 |
| DocuSign (1) | 3,750,000 | 232,200 |
| Slack Technologies, Class A (1) | 2,750,000 | 65,258 |
| Splunk (1) | 2,000,000 | 235,720 |
| SS&C Technologies Holdings | 2,250,000 | 116,033 |
| Symantec | 7,429,254 | 175,553 |
| Workday, Class A (1) | 2,250,000 | 382,410 |
| 1,606,995 | ||
| Total Information Technology | 6,606,889 | |
| MATERIALS 6.2% | ||
| Chemicals 1.8% | ||
| Air Products & Chemicals | 1,000,000 | 221,860 |
| RPM International | 4,250,000 | 292,442 |
| Valvoline | 4,495,500 | 99,036 |
| 613,338 | ||
| Construction Materials 0.6% | ||
| Martin Marietta Materials | 750,000 | 205,575 |
| 205,575 | ||
| Containers & Packaging 3.3% | ||
| Avery Dennison | 1,866,437 | 211,971 |
| Ball | 9,250,000 | 673,493 |
| Sealed Air | 5,000,000 | 207,550 |
| 1,093,014 | ||
| Metals & Mining 0.5% | ||
| Franco-Nevada | 500,000 | 45,580 |
| Kirkland Lake Gold | 2,327,087 | 104,254 |
| 149,834 | ||
| Total Materials | 2,061,761 | |
The accompanying notes are an integral part of this Portfolio of Investments.
| T. ROWE PRICE MID-CAP GROWTH FUND | ||
| Shares | $ Value | |
| (Cost and value in $000s) | ||
| REAL ESTATE 0.0% | ||
| Real Estate Management & Development 0.0% | ||
| WeWork, Class A, Acquisition Date: 5/26/15, | ||
| Cost $3,315 (1)(3)(4) | 233,899 | 3,983 |
| Total Real Estate | 3,983 | |
| UTILITIES 2.1% | ||
| Electric Utilities 0.6% | ||
| Eversource Energy | 2,500,000 | 213,675 |
| 213,675 | ||
| Gas Utilities 0.4% | ||
| Atmos Energy | 1,100,000 | 125,279 |
| 125,279 | ||
| Multi-Utilities 1.1% | ||
| Sempra Energy | 2,500,000 | 369,025 |
| 369,025 | ||
| Total Utilities | 707,979 | |
| Total Common Stocks (Cost $20,409,860) | 31,065,324 | |
| CONVERTIBLE PREFERRED STOCKS 0.3% | ||
| CONSUMER DISCRETIONARY 0.2% | ||
| Internet & Direct Marketing Retail 0.2% | ||
| Roofoods, Series F, Acquisition Date: 9/12/17, | ||
| Cost $42,389 (1)(3)(4) | 119,888 | 46,594 |
| Roofoods, Series G, Acquisition Date: 5/16/19, | ||
| Cost $1,380 (1)(3)(4) | 3,301 | 1,380 |
| Total Consumer Discretionary | 47,974 | |
| REAL ESTATE 0.1% | ||
| Real Estate Management & Development 0.1% | ||
| WeWork, Series D-1, Acquisition Date: 12/9/14, | ||
| Cost $21,046 (1)(3)(4) | 1,263,943 | 21,525 |
| The accompanying notes are an integral part of this Portfolio of Investments. | ||
| T. ROWE PRICE MID-CAP GROWTH FUND | |||||
| Shares | $ Value | ||||
| (Cost and value in $000s) | |||||
| WeWork, Series D-2, Acquisition Date: 12/9/14, | |||||
| Cost $16,536 (1)(3)(4) | 993,098 | 16,912 | |||
| Total Real Estate | 38,437 | ||||
| Total Convertible Preferred Stocks (Cost $81,351) | 86,411 | ||||
| SHORT-TERM INVESTMENTS 6.3% | |||||
| Money Market Funds 6.3% | |||||
| T. Rowe Price Treasury Reserve Fund, 2.04% (2)(5) | 2,100,345,206 | 2,100,345 | |||
| Total Short-Term Investments (Cost $2,100,345) | 2,100,345 | ||||
| Total Investments in Securities 100.0% | |||||
| (Cost $22,591,556) | $ | 33,252,080 | |||
| Other Assets Less Liabilities (0.0)% | (4,866 | ) | |||
| Net Assets 100.0% | $ | 33,247,214 | |||
| ‡ | Shares are denominated in U.S. dollars unless otherwise noted. | ||||
| (1 | ) | Non-income producing | |||
| (2 | ) | Affiliated Companies | |||
| (3 | ) | Security cannot be offered for public resale without first being registered | |||
| under the Securities Act of 1933 and related rules ("restricted security"). | |||||
| Acquisition date represents the day on which an enforceable right to acquire | |||||
| such security is obtained and is presented along with related cost in the | |||||
| security description. The fund has registration rights for certain restricted | |||||
| securities. Any costs related to such registration are borne by the issuer. The | |||||
| aggregate value of restricted securities (excluding 144A holdings) at period- | |||||
| end amounts to $144,256 and represents 0.4% of net assets. | |||||
| (4 | ) | Level 3 in fair value hierarchy. | |||
| (5 | ) | Seven-day yield | |||
| ADR | American Depositary Receipts | ||||
| The accompanying notes are an integral part of this Portfolio of Investments. | |||||
T. ROWE PRICE MID-CAP GROWTH FUND
Affiliated Companies
($000s)
The fund may invest in certain securities that are considered affiliated companies. As defined
by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the
outstanding voting securities, or a company that is under common ownership or control. The
following securities were considered affiliated companies for all or some portion of the nine
months ended September 30, 2019. Net realized gain (loss), investment income, change in net
unrealized gain/loss, and purchase and sales cost reflect all activity for the period then ended.
| Change in Net | ||||||||
| Net Realized Gain | Unrealized | Investment | ||||||
| Affiliate | (Loss) | Gain/Loss | Income | |||||
| Acadia Healthcare | $ | 46 | $ | 18,183 | $ | — | ||
| Amneal Pharmaceuticals | (42,067) | (35,197) | — | |||||
| Bruker | 2,167 | 130,939 | 1,128 | |||||
| Casey's General Stores | 784 | 61,953 | 1,710 | |||||
| Catalent | 1,805 | 130,172 | — | |||||
| Colfax | 266 | 54,585 | — | |||||
| CoreLogic | 833 | 77,662 | — | |||||
| Gardner Denver Holdings | 730 | 54,586 | — | |||||
| Levi Strauss, Class A | 39 | 978 | — | |||||
| Sensata Technologies Holding | 1,252 | 47,844 | — | |||||
| Sprouts Farmers Market | 220 | (25,241) | — | |||||
| Teleflex | 56,588 | 154,834 | 2,618 | |||||
| TreeHouse Foods | 489 | 16,101 | — | |||||
| Visteon | 92 | 30,210 | — | |||||
| T. Rowe Price Treasury Reserve | ||||||||
| Fund | — | — | 32,638 | |||||
| T. Rowe Price Short-Term | ||||||||
| Fund | — | — | —++ | |||||
| Totals | $ | 23,244# | $ | 717,609 | $ | 38,094+ | ||
The accompanying notes are an integral part of this Portfolio of Investments.
| T. ROWE PRICE MID-CAP GROWTH FUND | |||||||||
| Supplementary Investment Schedule | |||||||||
| Value | Purchase | Sales | Value | ||||||
| Affiliate | 12/31/18 | Cost | Cost | 9/30/19 | |||||
| Acadia Healthcare | $ | * $ | 41,929$ | 1,124$ | 155,400 | ||||
| Amneal Pharmaceuticals | 98,093 | 1,520 | 49,626 | * | |||||
| Bruker | 279,838 | 3,204 | 1,039 | 412,942 | |||||
| Casey's General Stores | 243,466 | 2,622 | 1,837 | 306,204 | |||||
| Catalent | 241,645 | 11,059 | 1,596 | 381,280 | |||||
| Colfax | 125,400 | 61,249 | 1,489 | 239,745 | |||||
| CoreLogic | 200,520 | 7,930 | 1,552 | 284,560 | |||||
| Gardner Denver Holdings | * | 117,924 | 1,828 | 346,552 | |||||
| Levi Strauss, Class A | — | 56,327 | 185 | 57,120 | |||||
| Sensata Technologies | |||||||||
| Holding | 421,496 | 3,947 | 47,777 | 425,510 | |||||
| Sprouts Farmers Market | * | 1,297 | 1,076 | 116,040 | |||||
| Teleflex | 710,820 | 7,734 | 74,976 | 798,412 | |||||
| TreeHouse Foods | 177,485 | 1,990 | 1,501 | 194,075 | |||||
| Visteon | * | 22,758 | 706 | 115,556 | |||||
| T. Rowe Price Treasury | |||||||||
| Reserve Fund | 1,617,263 | ¤ | ¤ | 2,100,345 | |||||
| T. Rowe Price Short-Term | |||||||||
| Fund | — | ¤ | ¤ | — | |||||
| $ | 5,933,741^ | ||||||||
| # | Capital gain distributions from mutual funds represented $0 of the net realized gain (loss). | ||||||||
| ++ | Excludes earnings on securities lending collateral, which are subject to rebates and fees. | ||||||||
| + | Investment income comprised $38,094 of dividend income and $0 of interest income. | ||||||||
| * | On the date indicated, issuer was held but not considered an affiliated company. | ||||||||
| ¤ | Purchase and sale information not shown for cash management funds. | ||||||||
| ^ | The cost basis of investments in affiliated companies was $4,862,101. | ||||||||
| The accompanying notes are an integral part of this Portfolio of Investments. | |||||||||
T. ROWE PRICE MID-CAP GROWTH FUND
Unaudited
NOTES TO PORTFOLIO OF
INVESTMENTS
T. Rowe Price Mid-Cap Growth Fund, Inc. (the fund) is registered under the Investment Company Act of 1940 (the 1940
Act) as an open-end management investment company and follows accounting and reporting guidance of the Financial
Accounting Standards BoardAccounting Standards CodificationTopic 946. The accompanying Portfolio of Investments
was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). For
additional information on the fund’s significant accounting policies and investment related disclosures, please refer to the
fund’s most recent semiannual or annual shareholder report and its prospectus.
VALUATION
The fund’s financial instruments are valued at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET,
each day the NYSE is open for business.
Fair Value
The fund’s financial instruments are reported at fair value, which GAAP defines as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The T. Rowe Price Valuation Committee (the Valuation Committee) is an internal committee that has been
delegated certain responsibilities by the fund’s Board of Directors (the Board) to ensure that financial instruments are
appropriately priced at fair value in accordance with GAAP and the 1940 Act. Subject to oversight by the Board, the
Valuation Committee develops and oversees pricing-related policies and procedures and approves all fair value
determinations. Specifically, the Valuation Committee establishes procedures to value securities; determines pricing
techniques, sources, and persons eligible to effect fair value pricing actions; oversees the selection, services, and
performance of pricing vendors; oversees valuation-related business continuity practices; and provides guidance on
internal controls and valuation-related matters. The Valuation Committee reports to the Board and has representation
from legal, portfolio management and trading, operations, risk management, and the fund’s treasurer.
Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP
establishes the following fair value hierarchy that categorizes the inputs used to measure fair value:
Level 1 - quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at
the reporting date
Level 2 - inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not
limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or
similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and
credit spreads)
Level 3 - unobservable inputs
Observable inputs are developed using market data, such as publicly available information about actual events or
transactions, and reflect the assumptions that market participants would use to price the financial instrument.
Unobservable inputs are those for which market data are not available and are developed using the best information
available about the assumptions that market participants would use to price the financial instrument. GAAP requires
valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs.
When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value
hierarchy based on the lowest-level input that is significant to the fair value of the financial instrument. Input levels are
not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the
degree of judgment used in determining those values.
Valuation Techniques
Equity securities listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued
at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made. OTC
Bulletin Board securities are valued at the mean of the closing bid and asked prices. A security that is listed or traded on
T. ROWE PRICE MID-CAP GROWTH FUND
more than one exchange is valued at the quotation on the exchange determined to be the primary market for such
security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices.
Actively traded equity securities listed on a domestic exchange generally are categorized in Level 1 of the fair value
hierarchy. OTC Bulletin Board securities, certain preferred securities, and equity securities traded in inactive markets
generally are categorized in Level 2 of the fair value hierarchy.
Investments in mutual funds are valued at the mutual fund’s closing NAV per share on the day of valuation and are
categorized in Level 1 of the fair value hierarchy.
Thinly traded financial instruments and those for which the above valuation procedures are inappropriate or are
deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee. The
objective of any fair value pricing determination is to arrive at a price that could reasonably be expected from a current
sale. Financial instruments fair valued by the Valuation Committee are primarily private placements, restricted
securities, warrants, rights, and other securities that are not publicly traded.
Subject to oversight by the Board, the Valuation Committee regularly makes good faith judgments to establish and
adjust the fair valuations of certain securities as events occur and circumstances warrant. For instance, in determining
the fair value of an equity investment with limited market activity, such as a private placement or a thinly traded public
company stock, the Valuation Committee considers a variety of factors, which may include, but are not limited to, the
issuer’s business prospects, its financial standing and performance, recent investment transactions in the issuer, new
rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market
valuations of peer companies, strategic events affecting the company, market liquidity for the issuer, and general
economic conditions and events. In consultation with the investment and pricing teams, the Valuation Committee will
determine an appropriate valuation technique based on available information, which may include both observable and
unobservable inputs. The Valuation Committee typically will afford greatest weight to actual prices in arm’s length
transactions, to the extent they represent orderly transactions between market participants, transaction information can
be reliably obtained, and prices are deemed representative of fair value. However, the Valuation Committee may also
consider other valuation methods such as market-based valuation multiples; a discount or premium from market value
of a similar, freely traded security of the same issuer; or some combination. Fair value determinations are reviewed on a
regular basis and updated as information becomes available, including actual purchase and sale transactions of the
issue. Because any fair value determination involves a significant amount of judgment, there is a degree of subjectivity
inherent in such pricing decisions, and fair value prices determined by the Valuation Committee could differ from
those of other market participants. Depending on the relative significance of unobservable inputs, including the
valuation technique(s) used, fair valued securities may be categorized in Level 2 or 3 of the fair value hierarchy.
Valuation Inputs
The following table summarizes the fund’s financial instruments, based on the inputs used to determine their fair values
on September 30, 2019 (for further detail by category, please refer to the accompanying Portfolio of Investments):
| ($000s) | Level 1 | Level 2 | Level 3 | Total Value | ||||
| Assets | ||||||||
| Common Stocks | $ | 31,007,479 | $ | — | $ | 57,845 | $ | 31,065,324 |
| Convertible Preferred Stocks | — | — | 86,411 | 86,411 | ||||
| Short-Term Investments | 2,100,345 | — | — | 2,100,345 | ||||
| Total | $ | 33,107,824 | $ | — | $ | 144,256 | $ | 33,252,080 |
T. ROWE PRICE MID-CAP GROWTH FUND
Following is a reconciliation of the fund’s Level 3 holdings for the period ended September 30, 2019. Gain (loss) reflects
both realized and change in unrealized gain/loss on Level 3 holdings during the period, if any. The change in unrealized
gain/loss on Level 3 instruments held at September 30, 2019, totaled $110,939,000 for the period ended September 30,
2019. During the period, transfers out of Level 3 include securities acquired as a result of a corporate action.
| ($ | 000s) | Beginning | Gain (Loss) | Transfers | Ending | ||||||||||||
| Balance | During | Total | Total | Out of | Balance | ||||||||||||
| 1/1/19 | Period | Purchases | Sales | Level 3 | 9/30/19 | ||||||||||||
| Investment in Securities | |||||||||||||||||
| Common Stocks | $ | 79,641 | $ | (7,558) | $ | – | $ | (14,238) | $ | – | $ | 57,845 | |||||
| Convertible Preferred Stocks | 199,120 | (93,040) | 1,380 | – | (21,049) | 86,411 | |||||||||||
| Total Level 3 | $ | 278,761 | $ | (100,598) | $ | 1,380 | $ | (14,238) | $ | (21,049) | $ | 144,256 | |||||