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: 811-07143
T. Rowe Price Equity Series, 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: June 30, 2023
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
Market
Commentary
Portfolio
Summary
Fund
Expense
Example
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
T.
ROWE
PRICE
Equity
Index
500
Portfolio
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
Equity
Index
500
Portfolio
Market
Commentary
Dear
Investor
Most
major
global
stock
and
bond
indexes
produced
positive
returns
during
the
first
half
of
your
fund’s
fiscal
year,
the
six-
month
period
ended
June
30,
2023.
Despite
turmoil
in
the
banking
sector
and
a
protracted
debt
ceiling
standoff,
markets
were
resilient
as
growth
remained
positive
in
the
major
economies
and
corporate
earnings
results
came
in
stronger
than
expected.
For
the
six-month
period,
the
technology-oriented
Nasdaq
Composite
Index
gained
more
than
30%,
the
strongest
result
of
the
major
benchmarks,
as
tech
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
applications.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
market
counterparts.
Currency
movements
were
mixed
over
the
period,
although
a
weaker
dollar
versus
major
European
currencies
was
beneficial
for
U.S.
investors
in
European
securities.
Within
the
S&P
500
Index,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns
in
the
growth-focused
environment,
and
the
energy
sector
also
lost
ground
amid
declining
oil
prices.
The
financials
sector
partly
recovered
from
the
failure
of
three
large
regional
banks
during
the
period
but
still
finished
with
modest
losses.
Cheaper
oil
contributed
to
slowing
inflation,
although
core
inflation
readings—which
exclude
volatile
food
and
energy
prices—remained
stubbornly
high.
In
response,
the
Federal
Reserve
raised
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.00%
to
5.25%
by
early
May,
the
highest
level
since
2007.
The
Fed
held
rates
steady
at
its
June
meeting,
but
policymakers
indicated
that
two
more
rate
hikes
could
come
by
the
end
of
the
year.
In
the
fixed
income
market,
returns
were
generally
positive
across
most
sectors
as
investors
benefited
from
the
higher
interest
rates
that
have
become
available
over
the
past
year.
Investment-grade
corporate
bonds
were
supported
by
generally
solid
balance
sheets
and
were
among
the
strongest
performers.
Global
economies
and
markets
showed
surprising
resilience
in
recent
months,
but,
moving
into
the
second
half
of
2023,
we
believe
investors
could
face
potential
challenges.
The
impact
of
the
Fed’s
rate
hikes
has
yet
to
be
fully
felt
in
the
economy,
and
while
the
regional
banking
turmoil
appears
to
have
been
contained
by
the
swift
actions
of
regulators,
it
could
weigh
on
credit
conditions.
Moreover,
market
consensus
still
seems
to
point
to
a
coming
recession,
although
hopes
have
emerged
that
such
a
downturn
could
be
more
modest.
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.
You
may
notice
that
this
report
no
longer
contains
the
commentary
on
your
fund’s
performance
and
positioning
that
we
previously
included
in
the
semiannual
shareholder
letters.
The
Securities
and
Exchange
Commission
(SEC)
adopted
new
rules
in
January
that
will
require
fund
reports
to
transition
to
a
new
format
known
as
a
Tailored
Shareholder
Report.
This
change
will
require
a
much
more
concise
summary
of
performance
rather
than
the
level
of
detail
we
have
provided
historically
while
also
aiming
to
be
more
visually
engaging.
As
we
prepare
to
make
changes
to
the
annual
reports
to
meet
the
new
report
regulatory
requirements
by
mid-2024,
we
felt
the
time
was
right
to
discontinue
the
optional
six-month
semiannual
fund
letter
to
focus
on
the
changes
to
come.
While
semiannual
fund
letters
will
no
longer
be
produced,
you
may
continue
to
access
current
fund
information
as
well
as
insights
and
perspectives
from
our
investment
team
on
our
personal
investing
website.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely,
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Portfolio
Summary
SECTOR
DIVERSIFICATION
Percent
of
Net
Assets
12/31/22
6/30/23
Information
Technology
25.3%
27.8%
Health
Care
15.7
13.3
Financials
11.5
12.3
Consumer
Discretionary
9.7
10.6
Industrials
and
Business
Services
8.7
8.5
Communication
Services
7.2
8.3
Consumer
Staples
7.1
6.6
Energy
5.2
4.1
Utilities
3.2
2.5
Materials
2.7
2.5
Real
Estate
2.7
2.5
Other
and
Reserves
1.0
1.0
Total
100.0%
100.0%
Historical
weightings
reflect
current
industry/sector
classifications.
TWENTY-FIVE
LARGEST
HOLDINGS
Percent
of
Net
Assets
6/30/23
Apple
7.6%
Microsoft
6.7
Alphabet
3.6
Amazon.com
3.1
NVIDIA
2.8
Tesla
1.9
Meta
Platforms
1.7
Berkshire
Hathaway
1.6
UnitedHealth
Group
1.2
Exxon
Mobil
1.2
Johnson
&
Johnson
1.1
JPMorgan
Chase
1.1
Visa
1.0
Eli
Lilly
1.0
Broadcom
1.0
Procter
&
Gamble
1.0
Mastercard
0.9
Home
Depot
0.8
Merck
0.8
Chevron
0.7
PepsiCo
0.7
Costco
Wholesale
0.6
AbbVie
0.6
Coca-Cola
0.6
Adobe
0.6
Total
43.9%
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
Equity
Index
500
Portfolio
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.
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
actual
expenses.
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.
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.
Equity
Index
500
Portfolio
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period*
1/1/23
to
6/30/23
Actual
$1,000.00
$1,166.60
$2.10
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.86
1.96
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period
(0.39%),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(181),
and
divided
by
the
days
in
the
year
(365)
to
reflect
the
half-year
period.
T.
ROWE
PRICE
Equity
Index
500
Portfolio
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
.
6
Months
.
Ended
6/30/23
..
Year
..
..
Ended
.
12/31/22
12/31/21
12/31/20
12/31/19
12/31/18
NET
ASSET
VALUE
Beginning
of
period
$
25.12
$
31.37
$
25.07
$
22.96
$
17.99
$
19.66
Investment
activities
Net
investment
income
(1)(2)
0.17
0.33
0.28
0.37
0.35
0.34
Net
realized
and
unrealized
gain/
loss
4.01
(6.11)
6.75
3.68
5.19
(1.26)
Total
from
investment
activities
4.18
(5.78)
7.03
4.05
5.54
(0.92)
Distributions
Net
investment
income
(0.17)
(0.33)
(0.29)
(0.37)
(0.38)
(0.32)
Net
realized
gain
–
(0.14)
(0.44)
(1.57)
(0.19)
(0.43)
Total
distributions
(0.17)
(0.47)
(0.73)
(1.94)
(0.57)
(0.75)
NET
ASSET
VALUE
End
of
period
$
29.13
$
25.12
$
31.37
$
25.07
$
22.96
$
17.99
Ratios/Supplemental
Data
Total
return
(2)(3)
16.66%
(18.43)%
28.20%
18.02%
31.01%
(4.82)%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
(4)
0.40%
(5)
0.39%
0.41%
0.40%
0.40%
0.40%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.39%
(5)
0.38%
0.40%
0.39%
0.39%
0.40%
Net
investment
income
1.27%
(5)
1.23%
0.97%
1.61%
1.69%
1.68%
Portfolio
turnover
rate
5.9%
12.9%
9.5%
16.1%
12.0%
9.7%
Net
assets,
end
of
period
(in
thousands)
$
27,264
$
23,508
$
29,530
$
22,667
$
22,419
$
17,850
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
See
Note
6
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.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
See
Note
6.
Prior
to
12/31/19,
the
gross
expense
ratios
presented
are
net
of
a
management
fee
waiver
in
effect
during
the
period,
as
applicable.
(5)
Annualized
T.
ROWE
PRICE
Equity
Index
500
Portfolio
June
30,
2023
(Unaudited)
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
COMMON
STOCKS
99.0%
COMMUNICATION
SERVICES
8.3%
Diversified
Telecommunication
Services
0.7%
AT&T
5,191
83
Verizon
Communications
3,053
113
196
Entertainment
1.4%
Activision
Blizzard (1)
518
44
Electronic
Arts
189
25
Live
Nation
Entertainment (1)
104
10
Netflix (1)
323
142
Take-Two
Interactive
Software (1)
117
17
Walt
Disney (1)
1,327
118
Warner
Bros
Discovery (1)
1,611
20
376
Interactive
Media
&
Services
5.3%
Alphabet,
Class
A (1)
4,313
516
Alphabet,
Class
C (1)
3,710
449
Match
Group (1)
203
9
Meta
Platforms,
Class
A (1)
1,606
461
1,435
Media
0.7%
Charter
Communications,
Class
A (1)
76
28
Comcast,
Class
A
3,020
125
Fox,
Class
A
198
7
Fox,
Class
B
104
3
Interpublic
Group
283
11
News,
Class
A
282
5
News,
Class
B
86
2
Omnicom
Group
145
14
Paramount
Global,
Class
B
368
6
201
Wireless
Telecommunication
Services
0.2%
T-Mobile
U.S. (1)
419
58
58
Total
Communication
Services
2,266
CONSUMER
DISCRETIONARY
10.5%
Automobile
Components
0.1%
Aptiv (1)
196
20
BorgWarner
169
8
28
Automobiles
2.2%
Ford
Motor
2,854
43
General
Motors
1,009
39
Tesla (1)
1,957
512
594
Broadline
Retail
3.2%
Amazon.com (1)
6,481
845
eBay
388
17
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Etsy (1)
91
8
870
Distributors
0.1%
Genuine
Parts
103
17
LKQ
184
11
Pool
29
11
39
Hotels,
Restaurants
&
Leisure
2.0%
Booking
Holdings (1)
27
73
Caesars
Entertainment (1)
157
8
Carnival (1)
738
14
Chipotle
Mexican
Grill (1)
20
43
Darden
Restaurants
87
14
Domino's
Pizza
26
9
Expedia
Group (1)
103
11
Hilton
Worldwide
Holdings
192
28
Las
Vegas
Sands (1)
238
14
Marriott
International,
Class
A
187
34
McDonald's
530
158
MGM
Resorts
International
219
10
Norwegian
Cruise
Line
Holdings (1)
303
7
Royal
Caribbean
Cruises (1)
161
17
Starbucks
833
82
Wynn
Resorts
75
8
Yum!
Brands
204
28
558
Household
Durables
0.4%
DR
Horton
225
27
Garmin
111
12
Lennar,
Class
A
184
23
Mohawk
Industries (1)
39
4
Newell
Brands
267
2
NVR (1)
2
13
PulteGroup
165
13
Whirlpool
40
6
100
Leisure
Products
0.0%
Hasbro
95
6
6
Specialty
Retail
2.1%
Advance
Auto
Parts
44
3
AutoZone (1)
14
35
Bath
&
Body
Works
166
6
Best
Buy
141
12
CarMax (1)
114
9
Home
Depot
735
228
Lowe's
433
98
O'Reilly
Automotive (1)
45
43
Ross
Stores
249
28
TJX
837
71
Tractor
Supply
80
18
Ulta
Beauty (1)
37
17
568
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Textiles,
Apparel
&
Luxury
Goods
0.4%
NIKE,
Class
B
895
99
Ralph
Lauren (2)
30
4
Tapestry
169
7
VF
237
4
114
Total
Consumer
Discretionary
2,877
CONSUMER
STAPLES
6.6%
Beverages
1.7%
Brown-Forman,
Class
B
132
9
Coca-Cola
2,826
170
Constellation
Brands,
Class
A
117
29
Keurig
Dr
Pepper
616
19
Molson
Coors
Beverage,
Class
B
137
9
Monster
Beverage (1)
554
32
PepsiCo
1,001
185
453
Consumer
Staples
Distribution
&
Retail
1.8%
Costco
Wholesale
322
173
Dollar
General
159
27
Dollar
Tree (1)
151
22
Kroger
474
22
Sysco
370
28
Target
336
44
Walgreens
Boots
Alliance
525
15
Walmart
1,019
160
491
Food
Products
1.0%
Archer-Daniels-Midland
395
30
Bunge
108
10
Campbell
Soup
145
7
Conagra
Brands
350
12
General
Mills
426
33
Hershey
106
26
Hormel
Foods
210
8
J
M
Smucker
78
11
Kellogg
188
13
Kraft
Heinz
579
21
Lamb
Weston
Holdings
105
12
McCormick
184
16
Mondelez
International,
Class
A
988
72
Tyson
Foods,
Class
A
210
11
282
Household
Products
1.4%
Church
&
Dwight
177
18
Clorox
90
14
Colgate-Palmolive
602
46
Kimberly-Clark
245
34
Procter
&
Gamble
1,712
260
372
Personal
Care
Products
0.1%
Estee
Lauder,
Class
A
169
33
33
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Tobacco
0.6%
Altria
Group
1,296
59
Philip
Morris
International
1,128
110
169
Total
Consumer
Staples
1,800
ENERGY
4.0%
Energy
Equipment
&
Services
0.3%
Baker
Hughes
735
23
Halliburton
655
22
Schlumberger
1,036
51
96
Oil,
Gas
&
Consumable
Fuels
3.7%
APA
224
8
Chevron
1,265
199
ConocoPhillips
878
91
Coterra
Energy
550
14
Devon
Energy
466
22
Diamondback
Energy
131
17
EOG
Resources
424
48
EQT
266
11
Exxon
Mobil
2,935
315
Hess
200
27
Kinder
Morgan
1,432
25
Marathon
Oil
448
10
Marathon
Petroleum
308
36
Occidental
Petroleum
522
31
ONEOK
326
20
Phillips
66
334
32
Pioneer
Natural
Resources
170
35
Targa
Resources
165
13
Valero
Energy
263
31
Williams
885
29
1,014
Total
Energy
1,110
FINANCIALS
12.3%
Banks
3.0%
Bank
of
America
5,034
144
Citigroup
1,413
65
Citizens
Financial
Group
351
9
Comerica
95
4
Fifth
Third
Bancorp
494
13
Huntington
Bancshares
1,054
11
JPMorgan
Chase
2,121
309
KeyCorp
680
6
M&T
Bank
120
15
PNC
Financial
Services
Group
290
37
Regions
Financial
677
12
Truist
Financial
968
29
U.S.
Bancorp
1,014
34
Wells
Fargo
2,725
116
Zions
Bancorp
110
3
807
Capital
Markets
2.6%
Ameriprise
Financial
76
25
Bank
of
New
York
Mellon
521
23
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
BlackRock
108
75
Cboe
Global
Markets
76
11
Charles
Schwab
1,080
61
CME
Group
261
48
FactSet
Research
Systems
28
11
Franklin
Resources (2)
205
6
Goldman
Sachs
Group
241
78
Intercontinental
Exchange
406
46
Invesco
330
6
MarketAxess
Holdings
27
7
Moody's
115
40
Morgan
Stanley
945
81
MSCI
58
27
Nasdaq
246
12
Northern
Trust
153
11
Raymond
James
Financial
139
14
S&P
Global
239
96
State
Street
243
18
T.
Rowe
Price
Group (3)
164
18
714
Consumer
Finance
0.5%
American
Express
431
75
Capital
One
Financial
277
30
Discover
Financial
Services
184
22
Synchrony
Financial
313
11
138
Financial
Services
4.2%
Berkshire
Hathaway,
Class
B (1)
1,294
441
Fidelity
National
Information
Services
432
24
Fiserv (1)
448
56
FleetCor
Technologies (1)
54
13
Global
Payments
191
19
Jack
Henry
&
Associates
52
9
Mastercard,
Class
A
607
239
PayPal
Holdings (1)
811
54
Visa,
Class
A
1,175
279
1,134
Insurance
2.0%
Aflac
399
28
Allstate
190
21
American
International
Group
525
30
Aon,
Class
A
148
51
Arch
Capital
Group (1)
270
20
Arthur
J
Gallagher
155
34
Assurant
38
5
Brown
&
Brown
172
12
Chubb
300
58
Cincinnati
Financial
116
11
Everest
Re
Group
31
11
Globe
Life
64
7
Hartford
Financial
Services
Group
225
16
Lincoln
National
112
3
Loews
137
8
Marsh
&
McLennan
359
68
MetLife
467
26
Principal
Financial
Group
165
13
Progressive
426
56
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Prudential
Financial
266
23
Travelers
168
29
W
R
Berkley
148
9
Willis
Towers
Watson
78
18
557
Total
Financials
3,350
HEALTH
CARE
13.4%
Biotechnology
1.9%
AbbVie
1,281
172
Amgen
387
86
Biogen (1)
105
30
Gilead
Sciences
905
70
Incyte (1)
134
8
Moderna (1)
238
29
Regeneron
Pharmaceuticals (1)
79
57
Vertex
Pharmaceuticals (1)
188
66
518
Health
Care
Equipment
&
Supplies
2.9%
Abbott
Laboratories
1,261
138
Align
Technology (1)
51
18
Baxter
International
369
17
Becton
Dickinson
&
Company
206
54
Boston
Scientific (1)
1,044
57
Cooper
36
14
DENTSPLY
SIRONA
155
6
Dexcom (1)
281
36
Edwards
Lifesciences (1)
440
42
GE
HealthCare
Technologies
284
23
Hologic (1)
179
15
IDEXX
Laboratories (1)
61
31
Insulet (1)
50
14
Intuitive
Surgical (1)
254
87
Medtronic
966
85
ResMed
107
23
STERIS
73
16
Stryker
246
75
Teleflex
34
8
Zimmer
Biomet
Holdings
152
22
781
Health
Care
Providers
&
Services
2.9%
AmerisourceBergen
117
23
Cardinal
Health
184
17
Centene (1)
401
27
Cigna
Group
214
60
CVS
Health
930
64
DaVita (1)
41
4
Elevance
Health
172
76
HCA
Healthcare
149
45
Henry
Schein (1)
95
8
Humana
91
41
Laboratory
Corp.
of
America
Holdings
65
16
McKesson
98
42
Molina
Healthcare (1)
43
13
Quest
Diagnostics
82
12
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
UnitedHealth
Group
676
325
Universal
Health
Services,
Class
B
46
7
780
Life
Sciences
Tools
&
Services
1.6%
Agilent
Technologies
214
26
Bio-Rad
Laboratories,
Class
A (1)
16
6
Bio-Techne
115
9
Charles
River
Laboratories
International (1)
37
8
Danaher
482
116
Illumina (1)
114
21
IQVIA
Holdings (1)
135
30
Mettler-Toledo
International (1)
16
21
Revvity
91
11
Thermo
Fisher
Scientific
281
147
Waters (1)
43
11
West
Pharmaceutical
Services
54
21
427
Pharmaceuticals
4.1%
Bristol-Myers
Squibb
1,525
97
Catalent (1)
134
6
Eli
Lilly
572
268
Johnson
&
Johnson
1,886
312
Merck
1,842
213
Organon
186
4
Pfizer
4,100
150
Viatris
866
9
Zoetis
336
58
1,117
Total
Health
Care
3,623
INDUSTRIALS
&
BUSINESS
SERVICES
8.6%
Aerospace
&
Defense
1.6%
Axon
Enterprise (1)
50
10
Boeing (1)
410
86
General
Dynamics
163
35
Howmet
Aerospace
267
13
Huntington
Ingalls
Industries
29
7
L3Harris
Technologies
137
27
Lockheed
Martin
163
75
Northrop
Grumman
104
47
Raytheon
Technologies
1,061
104
Textron
147
10
TransDigm
Group
38
34
448
Air
Freight
&
Logistics
0.6%
CH
Robinson
Worldwide
85
8
Expeditors
International
of
Washington
111
13
FedEx
167
41
United
Parcel
Service,
Class
B
527
95
157
Building
Products
0.4%
A.O.
Smith
91
7
Allegion
63
7
Carrier
Global
606
30
Johnson
Controls
International
498
34
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Masco
164
9
Trane
Technologies
166
32
119
Commercial
Services
&
Supplies
0.5%
Cintas
62
31
Copart (1)
311
28
Republic
Services
150
23
Rollins
169
7
Waste
Management
269
47
136
Construction
&
Engineering
0.1%
Quanta
Services
107
21
21
Electrical
Equipment
0.6%
AMETEK
168
27
Eaton
289
58
Emerson
Electric
415
37
Generac
Holdings (1)
46
7
Rockwell
Automation
84
28
157
Ground
Transportation
0.8%
CSX
1,476
50
JB
Hunt
Transport
Services
61
11
Norfolk
Southern
166
38
Old
Dominion
Freight
Line
66
24
Union
Pacific
443
91
214
Industrial
Conglomerates
1.0%
3M
399
40
General
Electric
790
87
Honeywell
International
483
100
Roper
Technologies
78
38
265
Machinery
1.8%
Caterpillar
374
92
Cummins
102
25
Deere
195
79
Dover
101
15
Fortive
256
19
IDEX
55
12
Illinois
Tool
Works
200
50
Ingersoll
Rand
294
19
Nordson
39
10
Otis
Worldwide
303
27
PACCAR
380
32
Parker-Hannifin
94
37
Pentair
119
8
Snap-on
38
11
Stanley
Black
&
Decker
114
11
Westinghouse
Air
Brake
Technologies
131
14
Xylem
174
19
480
Passenger
Airlines
0.2%
Alaska
Air
Group (1)
92
5
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
American
Airlines
Group (1)
470
9
Delta
Air
Lines (1)
470
22
Southwest
Airlines
434
16
United
Airlines
Holdings (1)
238
13
65
Professional
Services
0.7%
Automatic
Data
Processing
299
66
Broadridge
Financial
Solutions
86
14
Ceridian
HCM
Holding (1)
111
7
Equifax
89
21
Jacobs
Solutions
92
11
Leidos
Holdings
100
9
Paychex
234
26
Paycom
Software
35
11
Robert
Half
International
78
6
Verisk
Analytics
106
24
195
Trading
Companies
&
Distributors
0.3%
Fastenal
414
25
United
Rentals
50
22
WW
Grainger
33
26
73
Total
Industrials
&
Business
Services
2,330
INFORMATION
TECHNOLOGY
27.8%
Communications
Equipment
0.8%
Arista
Networks (1)
181
30
Cisco
Systems
2,973
154
F5 (1)
43
6
Juniper
Networks
230
7
Motorola
Solutions
122
36
233
Electronic
Equipment,
Instruments
&
Components
0.6%
Amphenol,
Class
A
432
37
CDW
98
18
Corning
555
19
Keysight
Technologies (1)
130
22
TE
Connectivity
229
32
Teledyne
Technologies (1)
34
14
Trimble (1)
180
10
Zebra
Technologies,
Class
A (1)
38
11
163
IT
Services
1.1%
Accenture,
Class
A
458
141
Akamai
Technologies (1)
110
10
Cognizant
Technology
Solutions,
Class
A
370
24
DXC
Technology (1)
169
5
EPAM
Systems (1)
42
10
Gartner (1)
58
20
International
Business
Machines
659
88
VeriSign (1)
66
15
313
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Semiconductors
&
Semiconductor
Equipment
7.3%
Advanced
Micro
Devices (1)
1,169
133
Analog
Devices
367
71
Applied
Materials
613
89
Broadcom
302
262
Enphase
Energy (1)
99
17
First
Solar (1)
72
14
Intel
3,028
101
KLA
99
48
Lam
Research
97
62
Microchip
Technology
397
35
Micron
Technology
794
50
Monolithic
Power
Systems
33
18
NVIDIA
1,796
760
NXP
Semiconductors
189
39
ON
Semiconductor (1)
314
30
Qorvo (1)
73
7
QUALCOMM
809
96
Skyworks
Solutions
116
13
SolarEdge
Technologies (1)
41
11
Teradyne
114
13
Texas
Instruments
660
119
1,988
Software
10.1%
Adobe (1)
333
163
ANSYS (1)
62
20
Autodesk (1)
155
32
Cadence
Design
Systems (1)
198
46
Fair
Isaac (1)
18
15
Fortinet (1)
473
36
Gen
Digital
421
8
Intuit
203
93
Microsoft
5,398
1,838
Oracle
1,118
133
Palo
Alto
Networks (1)
220
56
PTC (1)
77
11
Salesforce (1)
711
150
ServiceNow (1)
148
83
Synopsys (1)
111
48
Tyler
Technologies (1)
30
13
2,745
Technology
Hardware,
Storage
&
Peripherals
7.9%
Apple
10,734
2,082
Hewlett
Packard
Enterprise
941
16
HP
629
19
NetApp
157
12
Seagate
Technology
Holdings
139
9
Western
Digital (1)
234
9
2,147
Total
Information
Technology
7,589
MATERIALS
2.5%
Chemicals
1.7%
Air
Products
&
Chemicals
161
48
Albemarle
85
19
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Celanese
72
8
CF
Industries
Holdings
141
10
Corteva
516
30
Dow
513
27
DuPont
de
Nemours
333
24
Eastman
Chemical
87
7
Ecolab
179
33
FMC
90
9
International
Flavors
&
Fragrances
186
15
Linde
355
135
LyondellBasell
Industries,
Class
A
184
17
Mosaic
241
9
PPG
Industries
172
26
Sherwin-Williams
171
45
462
Construction
Materials
0.2%
Martin
Marietta
Materials
45
21
Vulcan
Materials
97
22
43
Containers
&
Packaging
0.2%
Amcor
1,076
11
Avery
Dennison
58
10
Ball
230
14
International
Paper
258
8
Packaging
Corp.
of
America
67
9
Sealed
Air
104
4
Westrock
185
5
61
Metals
&
Mining
0.4%
Freeport-McMoRan
1,040
41
Newmont
578
25
Nucor
183
30
Steel
Dynamics
117
13
109
Total
Materials
675
REAL
ESTATE
2.5%
Health
Care
Real
Estate
Investment
Trusts
0.2%
Healthpeak
Properties,
REIT
395
8
Ventas,
REIT
294
14
Welltower,
REIT
362
29
51
Hotel
&
Resort
Real
Estate
Investment
Trusts
0.0%
Host
Hotels
&
Resorts,
REIT
517
9
9
Industrial
Real
Estate
Investment
Trusts
0.3%
Prologis,
REIT
671
82
82
Office
Real
Estate
Investment
Trusts
0.1%
Alexandria
Real
Estate
Equities,
REIT
114
13
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Boston
Properties,
REIT
103
6
19
Real
Estate
Management
&
Development
0.2%
CBRE
Group,
Class
A (1)
225
18
CoStar
Group (1)
296
27
45
Residential
Real
Estate
Investment
Trusts
0.3%
AvalonBay
Communities,
REIT
103
19
Camden
Property
Trust,
REIT
77
8
Equity
Residential,
REIT
250
16
Essex
Property
Trust,
REIT
47
11
Invitation
Homes,
REIT
424
15
Mid-America
Apartment
Communities,
REIT
84
13
UDR,
REIT
225
10
92
Retail
Real
Estate
Investment
Trusts
0.3%
Federal
Realty
Investment
Trust,
REIT
54
5
Kimco
Realty,
REIT
452
9
Realty
Income,
REIT
489
29
Regency
Centers,
REIT
115
7
Simon
Property
Group,
REIT
239
28
78
Specialized
Real
Estate
Investment
Trusts
1.1%
American
Tower,
REIT
338
65
Crown
Castle,
REIT
314
36
Digital
Realty
Trust,
REIT
211
24
Equinix,
REIT
67
52
Extra
Space
Storage,
REIT
98
15
Iron
Mountain,
REIT
212
12
Public
Storage,
REIT
115
34
SBA
Communications,
REIT
79
18
VICI
Properties,
REIT
730
23
Weyerhaeuser,
REIT
533
18
297
Total
Real
Estate
673
UTILITIES
2.5%
Electric
Utilities
1.7%
Alliant
Energy
181
10
American
Electric
Power
373
31
Constellation
Energy
235
22
Duke
Energy
559
50
Edison
International
278
19
Entergy
153
15
Evergy
167
10
Eversource
Energy
253
18
Exelon
722
29
FirstEnergy
398
16
NextEra
Energy
1,470
109
NRG
Energy
169
6
PG&E (1)
1,178
20
Pinnacle
West
Capital
82
7
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
PPL
535
14
Southern
792
56
Xcel
Energy
400
25
457
Gas
Utilities
0.0%
Atmos
Energy
105
12
12
Independent
Power
&
Renewable
Electricity
Producers
0.0%
AES
493
10
10
Multi-Utilities
0.7%
Ameren
190
16
CenterPoint
Energy
460
13
CMS
Energy
213
13
Consolidated
Edison
251
23
Dominion
Energy
607
32
DTE
Energy
149
16
NiSource
308
8
Public
Service
Enterprise
Group
363
23
Sempra
Energy
229
33
WEC
Energy
Group
230
20
197
Water
Utilities
0.1%
American
Water
Works
141
20
20
Total
Utilities
696
Total
Common
Stocks
(Cost
$7,319)
26,989
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
EQUITY
MUTUAL
FUNDS
0.2%
iShares
Core
S&P
500
ETF
123
55
Total
Equity
Mutual
Funds
(Cost
$46)
55
SHORT-TERM
INVESTMENTS
0.9%
Money
Market
Funds
0.7%
T.
Rowe
Price
Government
Reserve
Fund,
5.13% (3)(4)
201,332
201
201
U.S.
Treasury
Obligations
0.2%
U.S.
Treasury
Bills,
5.248%,
12/14/23 (5)
40,000
39
39
Total
Short-Term
Investments
(Cost
$240)
240
SECURITIES
LENDING
COLLATERAL
0.0%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY
0.0%
Money
Market
Funds
0.0%
T.
Rowe
Price
Government
Reserve
Fund,
5.13% (3)(4)
8,455
8
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
8
Total
Securities
Lending
Collateral
(Cost
$8)
8
Total
Investments
in
Securities
100.1%
of
Net
Assets
(Cost
$7,613)
$
27,292
‡
Shares/Par
and
Notional
Amount
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Non-income
producing
(2)
See
Note
4
.
All
or
a
portion
of
this
security
is
on
loan
at
June
30,
2023.
(3)
Affiliated
Companies
(4)
Seven-day
yield
(5)
At
June
30,
2023,
all
or
a
portion
of
this
security
is
pledged
as
collateral
and/or
margin
deposit
to
cover
future
funding
obligations.
ETF
Exchange-Traded
Fund
REIT
A
domestic
Real
Estate
Investment
Trust
whose
distributions
pass-through
with
original
tax
character
to
the
shareholder
T.
ROWE
PRICE
Equity
Index
500
Portfolio
FUTURES
CONTRACTS
($000s)
Expiration
Date
Notional
Amount
Value
and
Unrealized
Gain
(Loss)
Long,
1
S&P
500
E-Mini
Index
contracts
9/23
224
$
5
Net
payments
(receipts)
of
variation
margin
to
date
(2)
Variation
margin
receivable
(payable)
on
open
futures
contracts
$
3
T.
ROWE
PRICE
Equity
Index
500
Portfolio
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
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
six
months
ended
June
30,
2023.
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
Group
$
—
$
—
$
—
T.
Rowe
Price
Government
Reserve
Fund,
5.13%
—
—
4++
Totals
$
—#
$
—
$
4+
Supplementary
Investment
Schedule
Affiliate
Value
12/31/22
Purchase
Cost
Sales
Cost
Value
06/30/23
T.
Rowe
Price
Group
$
18
$
1
$
1
$
18
T.
Rowe
Price
Government
Reserve
Fund,
5.13%
160
¤
¤
209
Total
$
227^
#
Capital
gain
distributions
from
underlying
Price
funds
represented
$0
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
$4
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
$221.
T.
ROWE
PRICE
Equity
Index
500
Portfolio
June
30,
2023
(Unaudited)
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$7,613)
$
27,292
Dividends
receivable
16
Variation
margin
receivable
on
futures
contracts
3
Total
assets
27,311
Liabilities
Investment
management
and
administrative
fees
payable
39
Obligation
to
return
securities
lending
collateral
8
Total
liabilities
47
NET
ASSETS
$
27,264
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
19,337
Paid-in
capital
applicable
to
936,092
shares
of
$0.0001
par
value
capital
stock
outstanding;
1,000,000,000
shares
of
the
Corporation
authorized
7,927
NET
ASSETS
$
27,264
NET
ASSET
VALUE
PER
SHARE
$
29.13
T.
ROWE
PRICE
Equity
Index
500
Portfolio
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
6/30/23
Investment
Income
(Loss)
Income
Dividend
$
210
Interest
1
Total
income
211
Expenses
Investment
management
and
administrative
expense
51
Waived
/
paid
by
Price
Associates
(1)
Net
expenses
50
Net
investment
income
161
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
gain
(loss)
Securities
27
Futures
13
Net
realized
gain
40
Change
in
net
unrealized
gain
/
loss
Securities
3,738
Futures
10
Change
in
net
unrealized
gain
/
loss
3,748
Net
realized
and
unrealized
gain
/
loss
3,788
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
3,949
T.
ROWE
PRICE
Equity
Index
500
Portfolio
(Unaudited)
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
6/30/23
Year
Ended
12/31/22
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
161
$
312
Net
realized
gain
(loss)
40
(66)
Change
in
net
unrealized
gain
/
loss
3,748
(5,716)
Increase
(decrease)
in
net
assets
from
operations
3,949
(5,470)
Distributions
to
shareholders
Net
earnings
(157)
(442)
Capital
share
transactions
*
Shares
sold
1,095
2,530
Distributions
reinvested
157
442
Shares
redeemed
(1,288)
(3,082)
Decrease
in
net
assets
from
capital
share
transactions
(36)
(110)
Net
Assets
Increase
(decrease)
during
period
3,756
(6,022)
Beginning
of
period
23,508
29,530
End
of
period
$
27,264
$
23,508
*Share
information
(000s)
Shares
sold
41
91
Distributions
reinvested
6
17
Shares
redeemed
(47)
(113)
Decrease
in
shares
outstanding
–
(5)
T.
ROWE
PRICE
Equity
Index
500
Portfolio
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
Equity
Series,
Inc.
(the
corporation) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Equity
Index
500
Portfolio
(the
fund)
is
an
open-end
management
investment
company
established
by
the
corporation
and
intends
to
be
diversified
in
approximately
the
same
proportion
as
the
index
it
tracks
is
diversified.
The
fund
may
become
nondiversified
for
periods
of
time
solely
as
a
result
of
changes
in
the
composition
of
the
index
(for
example,
changes
in
the
relative
market
capitalization
or
index
weighting
of
one
or
more
securities
represented
in
the
index). The
fund
seeks
to
track
the
performance
of
a
benchmark
index
that
measures
the
investment
return
of
large-capitalization
U.S.
stocks.
Shares
of
the
fund are
currently offered
only
to
insurance
company
separate
accounts
established
for
the
purpose
of
funding
variable
annuity
contracts
and
variable
life
insurance
policies.
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.
Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense.
Dividends
received
from other
investment
companies are
reflected
as
dividend
income;
capital
gain
distributions
are
reflected
as
realized
gain/loss.
Dividend
income 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 quarterly.
A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
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
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.
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
T.
ROWE
PRICE
Equity
Index
500
Portfolio
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:
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.
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
Equity
Index
500
Portfolio
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
June
30,
2023
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
NOTE
3
-
DERIVATIVE
INSTRUMENTS
During
the
six
months ended
June
30,
2023,
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
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
June
30,
2023,
and
the
related
location
on
the
accompanying
Statement
of
Assets
and
Liabilities,
presented
by
primary
underlying
risk
exposure:
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Common
Stocks
$
26,989
$
—
$
—
$
26,989
Equity
Mutual
Funds
55
—
—
55
Short-Term
Investments
201
39
—
240
Securities
Lending
Collateral
8
—
—
8
Total
Securities
27,253
39
—
27,292
Futures
Contracts*
5
—
—
5
Total
$
27,258
$
39
$
—
$
27,297
*
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.
($000s)
Location
on
Statement
of
Assets
and
Liabilities
Fair
Value*
Assets
Equity
derivatives
Futures
$
5
*
Total
$
5
*
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
Equity
Index
500
Portfolio
Additionally,
the
amount
of
gains
and
losses
on
derivative
instruments
recognized
in
fund
earnings
during
the
six
months ended
June
30,
2023,
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
contracts
were
cleared.
This
ability
is
subject
to
the
liquidity
of
underlying
positions. As
of
June
30,
2023,
securities
valued
at $14,000
had
been
posted
by
the
fund
for
exchange-traded
and/or
centrally
cleared
derivatives.
Futures
Contracts
The
fund
is
subject
to equity
price
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
as
an
efficient
means
of
maintaining
liquidity
while
being
invested
in
the
market,
to
facilitate
trading,
or
to
reduce
transaction
costs. 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
potential
losses
in
excess
of
the
fund’s
initial
investment.
During
the
six
months ended
June
30,
2023,
the
volume
of
the
fund’s
activity
in
futures,
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.
($000s)
Location
of
Gain
(Loss)
on
Statement
of
Operations
Futures
Realized
Gain
(Loss)
Equity
derivatives
$
13
Total
$
13
Change
in
Unrealized
Gain
(Loss)
Equity
derivatives
$
10
Total
$
10
T.
ROWE
PRICE
Equity
Index
500
Portfolio
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
June
30,
2023,
the
value
of
loaned
securities
was
$8,000;
the
value
of
cash
collateral
and
related
investments
was
$8,000.
Other
Purchases
and
sales
of
portfolio
securities
other
than
short-term securities
aggregated $1,477,000 and
$1,500,000,
respectively,
for
the
six
months ended
June
30,
2023.
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.
Financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
amount
and
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report.
At
June
30,
2023,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$7,992,000.
Net
unrealized
gain
aggregated
$19,305,000
at
period-end,
of
which $19,881,000
related
to
appreciated
investments
and $576,000
related
to
depreciated
investments.
NOTE
6
-
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
and
administrative
agreement
between
the
fund
and
Price
Associates
provides
for
an
all-
inclusive
annual
fee
equal
to
0.40%
of
the
fund’s
average
daily
net
assets.
The
fee
is
computed
daily
and
paid
monthly. The
all-inclusive
fee
covers
investment
management
services
and
ordinary,
recurring
operating
expenses
but
does
not
cover
interest
expense;
expenses
related
to
borrowing,
taxes,
and
brokerage;
or
nonrecurring,
extraordinary
expenses. Effective
July
1,
2018,
Price
Associates
has
contractually
agreed,
at
least
through
April
30,
2024
to
waive
a
portion
of
its
management
fee
in
order
to
limit
the
fund’s
management
fee
to
0.39%
of
the
fund’s
average
daily
net
assets.
Thereafter,
this
agreement
automatically
renews
for
one-year
terms
unless
terminated
or
modified
by
the
fund’s
Board.
Fees
waived
and
expenses
paid
under
this
agreement
are
not
subject
to
reimbursement
to
Price
Associates
by
the
fund. The
total
management
fees
waived
were $1,000
for
the
six
months
ended
June
30,
2023.
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
a
wholly
owned
subsidiary
of
Price
Associates,
each
an
affiliate
of
the
fund.
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
funds.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
Pursuant
to
the
all-inclusive
fee
arrangement
under
the
investment
management
and
administrative
agreement,
expenses
incurred
by
the
funds
pursuant
to
these
service
agreements
are
paid
by
Price
Associates.
Consistent
with
its
investment
objective,
the
fund
may
invest
in
T.
Rowe
Price
Group,
Inc.
Additionally,
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,
T.
ROWE
PRICE
Equity
Index
500
Portfolio
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
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
six
months
ended
June
30,
2023,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
NOTE
7
-
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.
In
March
2023,
the
collapse
of
some
US
regional
and
global
banks
as
well
as
overall
concerns
around
the
soundness
and
stability
of
the
global
banking
sector
has
sparked
concerns
of
a
broader
financial
crisis
impacting
the
overall
global
banking
sector.
In
certain
cases,
government
agencies
have
assumed
control
or
otherwise
intervened
in
the
operations
of
certain
banks
due
to
liquidity
and
solvency
concerns.
The
extent
of
impact
of
these
events
on
the
US
and
global
markets
is
highly
uncertain.
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
Equity
Index
500
Portfolio
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.
RESULTS
OF
PROXY
VOTING
A
Special
Meeting
of
Shareholders
was
held
on
July
24,
2023
for
shareholders
of
record
on
April
7,
2023,
to
elect
the
following
director-
nominees
to
serve
on
the
Board
of
all
Price
Funds.
The
newly
elected
Directors
took
office
effective
July
24,
2023.
The
results
of
the
voting
were
as
follows:
Teresa
Bryce
Bazemore,
Bruce
W.
Duncan,
Robert
J.
Gerrard,
Jr.,
Paul
F.
McBride
and
David
Oestreicher
continue
to
serve
as
Directors
on
the
Board
of
all
Price
Funds.
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
.
Votes
For
Votes
Withheld
Melody
Bianchetto
74,096,003
4,864,479
Mark
J.
Parrell
76,629,190
2,346,625
Kellye
L.
Walker
76,708,663
2,268,629
Eric
L.
Veiel
76,898,359
2,090,473
T.
ROWE
PRICE
Equity
Index
500
Portfolio
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
Each
year,
the
fund’s
Board
of
Directors
(Board)
considers
the
continuation
of
the
investment
management
agreement
(Advisory
Contract)
between
the
fund
and
its
investment
adviser,
T.
Rowe
Price
Associates,
Inc.
(Adviser),
as
well
as
the
investment
subadvisory
agreement
(Subadvisory
Contract)
that
the
Adviser
has
entered
into
with
T.
Rowe
Price
International
Ltd
(Subadviser)
on
behalf
of
the
fund.
In
that
regard,
at
a
meeting
held
on
March
6–7,
2023
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors,
approved
the
continuation
of
the
fund’s
Advisory
Contract
and
Subadvisory
Contract.
At
the
Meeting,
the
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
selection
of
the
Adviser
and
Subadviser
and
the
approval
of
the
Advisory
Contract
and
Subadvisory
Contract.
The
independent
directors
were
assisted
in
their
evaluation
of
the
Advisory
Contract
and
Subadvisory
Contract
by
independent
legal
counsel
from
whom
they
received
separate
legal
advice
and
with
whom
they
met
separately.
In
providing
information
to
the
Board,
the
Adviser
was
guided
by
a
detailed
set
of
requests
for
information
submitted
by
independent
legal
counsel
on
behalf
of
the
independent
directors.
In
considering
and
approving
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract,
the
Board
considered
the
information
it
believed
was
relevant,
including,
but
not
limited
to,
the
information
discussed
below.
The
Board
considered
not
only
the
specific
information
presented
in
connection
with
the
Meeting
but
also
the
knowledge
gained
over
time
through
interaction
with
the
Adviser
and
Subadviser
about
various
topics.
The
Board
meets
regularly
and,
at
each
of
its
meetings,
covers
an
extensive
agenda
of
topics
and
materials
and
considers
factors
that
are
relevant
to
its
annual
consideration
of
the
renewal
of
the
T.
Rowe
Price
funds’
advisory
contracts,
including
performance
and
the
services
and
support
provided
to
the
funds
and
their
shareholders.
Services
Provided
by
the
Adviser
and
Subadviser
The
Board
considered
the
nature,
quality,
and
extent
of
the
services
provided
to
the
fund
by
the
Adviser
and
Subadviser.
These
services
included,
but
were
not
limited
to,
directing
the
fund’s
investments
in
accordance
with
its
investment
program
and
the
overall
management
of
the
fund’s
portfolio,
as
well
as
a
variety
of
related
activities
such
as
financial,
investment
operations,
and
administrative
services;
compliance;
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
and
Subadviser’s
senior
management
teams
and
investment
personnel
involved
in
the
management
of
the
fund,
as
well
as
the
Adviser’s
compliance
record.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
nature,
quality,
and
extent
of
the
services
provided
by
the
Adviser
and
Subadviser,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract.
Investment
Performance
of
the
Fund
The
Board
took
into
account
discussions
with
the
Adviser
and
detailed
reports
that
it
regularly
receives
throughout
the
year
on
relative
and
absolute
performance
for
the
T.
Rowe
Price
funds.
In
connection
with
the
Meeting,
the
Board
reviewed
information
provided
by
the
Adviser
that
compared
the
fund’s
total
returns,
as
well
as
a
wide
variety
of
other
previously
agreed-upon
performance
measures
and
market
data,
against
relevant
benchmark
indexes
and
peer
groups
of
funds
with
similar
investment
programs
for
various
periods
through
December
31,
2022. Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2022,
which
ranked
the
returns
of
the
fund’s
Investor
Class
for
various
periods
against
a
universe
of
funds
with
similar
investment
programs
selected
by
Broadridge,
an
independent
provider
of
mutual
fund
data.
In
the
course
of
its
deliberations,
the
Board
considered
performance
information
provided
throughout
the
year
and
in
connection
with
the
Advisory
Contract
review
at
the
Meeting,
as
well
as
information
provided
during
investment
review
meetings
conducted
with
portfolio
managers
and
senior
investment
personnel
during
the
course
of
the
year
regarding
the
fund’s
performance.
The
Board
also
considered
relevant
factors,
such
as
overall
market
conditions
and
trends
that
could
adversely
impact
the
fund’s
performance,
length
of
the
fund’s
performance
track
record,
and
how
closely
the
fund’s
strategies
align
with
its
benchmarks
and
peer
groups.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
fund’s
performance,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract.
Costs,
Benefits,
Profits,
and
Economies
of
Scale
The
Board
reviewed
detailed
information
regarding
the
revenues
received
by
the
Adviser
under
the
Advisory
Contract
and
other
direct
and
indirect
benefits
that
the
Adviser
(and
its
affiliates)
may
have
realized
from
its
relationship
with
the
fund.
In
considering
soft-dollar
arrangements
pursuant
to
which
research
may
be
received
from
broker-dealers
that
execute
the
fund’s
portfolio
transactions,
the
Board
noted
that
the
Adviser
bears
the
cost
of
research
services
for
all
client
accounts
that
it
advises,
including
the
T.
Rowe
Price
funds.
The
Board
received
information
on
the
estimated
costs
incurred
and
profits
realized
by
the
Adviser
from
managing
the
T.
Rowe
Price
funds.
While
the
Board
did
not
review
information
regarding
profits
realized
from
managing
the
fund
in
particular
because
the
fund
had
either
not
achieved
sufficient
portfolio
asset
size
or
not
recognized
sufficient
revenues
to
produce
meaningful
profit
margin
percentages,
the
Board
concluded
that
the
Adviser’s
profits
were
reasonable
in
light
of
the
services
provided
to
the
T.
Rowe
Price
funds.
T.
ROWE
PRICE
Equity
Index
500
Portfolio
The
Board
also
considered
whether
the
fund
benefits
under
the
fee
levels
set
forth
in
the
Advisory
Contract
or
otherwise
from
any
economies
of
scale
realized
by
the
Adviser.
Under
the
Advisory
Contract,
the
fund
pays
the
Adviser
an
all-inclusive
management
fee,
which
is
based
on
the
fund’s
average
daily
net
assets.
The
all-inclusive
management
fee
includes
investment
management
services
and
provides
for
the
Adviser
to
pay
all
of
the
fund’s
ordinary,
recurring
operating
expenses
except
for
interest,
taxes,
portfolio
transaction
fees,
and
any
nonrecurring
extraordinary
expenses
that
may
arise.
However,
the
fund
has
a
contractual
limitation
in
place
whereby
the
Adviser
has
agreed
to
waive
a
portion
of
the
management
fee
it
is
entitled
to
receive
from
the
fund
in
order
to
limit
the
fund’s
overall
management
fee
rate
to
0.39%
of
the
fund’s
average
daily
net
assets.
Any
fees
waived
under
this
management
fee
waiver
agreement
are
not
subject
to
reimbursement
to
the
Adviser
by
the
fund.
Under
the
Subadvisory
Contract,
the
Adviser
may
pay
the
Subadviser
up
to
60%
of
the
advisory
fees
that
the
Adviser
receives
from
the
fund.
The
Adviser
has
generally
implemented
an
all-inclusive
management
fee
structure
in
situations
where
a
fixed
total
expense
ratio
is
useful
for
purposes
of
providing
certainty
of
fees
and
expenses
for
the
fund’s
investors
and
has
historically
sought
to
set
the
initial
all-inclusive
management
fee
rate
at
levels
below
the
expense
ratios
of
comparable
funds
to
take
into
account
potential
future
economies
of
scale.
Because
the
fund
serves
as
an
underlying
option
to
variable
annuity
products,
the
all-inclusive
fee
structure
is
utilized
to
create
certainty
for
the
annuity
providers’
overall
pricing
decisions
and
disclosures.
In
addition,
the
assets
of
the
fund
are
included
in
the
calculation
of
the
group
fee
rate,
which
serves
as
a
component
of
the
management
fee
for
many
T.
Rowe
Price
funds
and
declines
at
certain
asset
levels
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
funds
(including
the
fund).
Although
the
fund
does
not
have
a
group
fee
component
to
its
management
fee,
its
assets
are
included
in
the
calculation
because
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds.
In
addition,
the
Board
noted
that
the
fund
potentially
shares
in
indirect
economies
of
scale
through
the
Adviser’s
ongoing
investments
in
its
business
in
support
of
the
T.
Rowe
Price
funds,
including
investments
in
trading
systems,
technology,
and
regulatory
support
enhancements,
and
the
ability
to
possibly
negotiate
lower
fee
arrangements
with
third-party
service
providers.
The
Board
concluded
that
the
advisory
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
any
economies
of
scale
with
the
fund’s
investors.
Fees
and
Expenses
The
Board
was
provided
with
information
regarding
industry
trends
in
management
fees
and
expenses.
Among
other
things,
the
Board
reviewed
data
for
peer
groups
that
were
compiled
by
Broadridge,
which
compared:
(i)
contractual
management
fees,
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
fund
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group)
and
(ii)
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
fund
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
reflect
the
fund’s
all-inclusive
management
fee
rate
reduced
by
the
fund’s
management
fee
waiver
arrangement),
and
total
expenses
(which
reflects
the
fund’s
all-inclusive
management
fee
rate
reduced
by
the
fund’s
management
fee
waiver
arrangement)
in
comparison
with
the
information
for
the
Broadridge
peer
groups.
Broadridge
generally
constructed
the
peer
groups
by
seeking
the
most
comparable
funds
based
on
similar
investment
classifications
and
objectives,
expense
structure,
asset
size,
and
operating
components
and
attributes
and
ranked
funds
into
quintiles,
with
the
first
quintile
representing
the
funds
with
the
lowest
relative
expenses
and
the
fifth
quintile
representing
the
funds
with
the
highest
relative
expenses.
The
information
provided
to
the
Board
indicated
that
the
fund’s
contractual
management
fee
ranked
in
the
fourth
quintile
(Expense
Group),
the
fund’s
actual
management
fee
rate
ranked
in
the
fifth
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
fifth
quintile
(Expense
Group
and
Expense
Universe).
The
Adviser
provided
the
Board
with
additional
information
with
respect
to
the
fund’s
relative
management
fees
and
total
expenses
ranking
in
the
fifth
quintile.
The
Board
reviewed
and
considered
the
information
provided
relating
to
the
fund,
including
other
funds
in
the
peer
group,
and
other
factors
that
the
Board
determined
to
be
relevant.
The
Board
also
reviewed
the
fee
schedules
for
other
investment
portfolios
with
similar
mandates
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
and
individual
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios,
including
collective
investment
trusts
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
and
services
provided
to
subadvisory
and
other
institutional
account
clients,
including
information
about
how
the
requirements
and
economics
of
the
institutional
business
are
fundamentally
different
from
those
of
the
proprietary
mutual
fund
business.
The
Board
considered
information
showing
that
the
Adviser’s
mutual
fund
business
is
generally
more
complex
from
a
business
and
compliance
perspective
than
its
institutional
account
business
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
greater
asset
flows,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
(continued)
T.
ROWE
PRICE
Equity
Index
500
Portfolio
proprietary
mutual
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
mutual
fund
business
versus
managing
a
discrete
pool
of
assets
as
a
subadviser
to
another
institution’s
mutual
fund
or
for
an
institutional
account
and
that
the
Adviser
generally
performs
significant
additional
services
and
assumes
greater
risk
in
managing
the
fund
and
other
T.
Rowe
Price
funds
than
it
does
for
institutional
account
clients,
including
subadvised
funds.
On
the
basis
of
the
information
provided
and
the
factors
considered,
the
Board
concluded
that
the
fees
paid
by
the
fund
under
the
Advisory
Contract
are
reasonable.
Approval
of
the
Advisory
Contract
and
Subadvisory
Contract
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract.
No
single
factor
was
considered
in
isolation
or
to
be
determinative
to
the
decision.
Rather,
the
Board
concluded,
in
light
of
a
weighting
and
balancing
of
all
factors
considered,
that
it
was
in
the
best
interests
of
the
fund
and
its
shareholders
for
the
Board
to
approve
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract
(including
the
fees
to
be
charged
for
services
thereunder).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
(continued)
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
E308-051
8/23
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
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 is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant���s annual Form N-CSR.
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.
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 Equity Series, Inc. |
| | |
| By | | /s/ David Oestreicher | | |
| | David Oestreicher | | |
| | Principal Executive Officer | | |
| | |
| Date | | August 18, 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 | | August 18, 2023 | | |
| | |
| By | | /s/ Alan S. Dupski | | |
| | Alan S. Dupski | | |
| | Principal Financial Officer | | |
| | |
| Date | | August 18, 2023 | | |
