T. ROWE PRICE VALUE FUND
March 31, 2020 (Unaudited)
| | |
| Portfolio of Investments‡ | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| COMMON STOCKS 98.2% | | |
| COMMUNICATION SERVICES 3.2% | | |
| Entertainment 0.5% | | |
| Walt Disney | 961,000 | 92,833 |
| | | 92,833 |
| Interactive Media & Services 2.5% | | |
| Alphabet, Class C (1)(2) | 392,600 | 456,519 |
| Facebook, Class A (1) | 276,900 | 46,187 |
| | | 502,706 |
| Media 0.2% | | |
| Charter Communications, Class A (1) | 95,300 | 41,580 |
| | | 41,580 |
| Total Communication Services | | 637,119 |
| CONSUMER DISCRETIONARY 2.8% | | |
| Hotels, Restaurants & Leisure 2.1% | | |
| Hilton Worldwide Holdings (2) | 1,295,000 | 88,371 |
| Marriott International, Class A (2) | 831,708 | 62,220 |
| McDonald's | 1,105,300 | 182,761 |
| Yum! Brands | 1,192,508 | 81,723 |
| | | 415,075 |
| Multiline Retail 0.4% | | |
| Dollar Tree (1) | 1,042,315 | 76,579 |
| | | 76,579 |
| Specialty Retail 0.3% | | |
| Ross Stores | 792,613 | 68,933 |
| | | 68,933 |
| Textiles, Apparel & Luxury Goods 0.0% | | |
| VF | 101,000 | 5,462 |
| | | 5,462 |
| Total Consumer Discretionary | | 566,049 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| CONSUMER STAPLES 4.1% | | |
| Beverages 0.2% | | |
| PepsiCo | 253,500 | 30,445 |
| | | 30,445 |
| Food Products 2.7% | | |
| Mondelez International, Class A | 727,900 | 36,453 |
| Tyson Foods, Class A | 8,758,260 | 506,841 |
| | | 543,294 |
| Household Products 0.4% | | |
| Procter & Gamble | 756,600 | 83,226 |
| | | 83,226 |
| Tobacco 0.8% | | |
| Altria Group | 1,004,300 | 38,836 |
| Philip Morris International | 1,585,082 | 115,648 |
| | | 154,484 |
| Total Consumer Staples | | 811,449 |
| ENERGY 4.8% | | |
| Oil, Gas & Consumable Fuels 4.8% | | |
| Chevron | 1,597,900 | 115,784 |
| ConocoPhillips | 3,814,240 | 117,478 |
| Continental Resources | 3,538,074 | 27,031 |
| Enbridge | 2,767,600 | 80,509 |
| EOG Resources | 3,061,710 | 109,977 |
| Suncor Energy | 4,224,600 | 66,749 |
| TC Energy | 7,390,313 | 327,391 |
| TOTAL, ADR | 2,324,000 | 86,546 |
| Williams | 1,413,231 | 19,997 |
| Total Energy | | 951,462 |
| FINANCIALS 16.3% | | |
| Banks 5.9% | | |
| Bank of America (2) | 16,486,941 | 350,018 |
| Citigroup | 4,752,914 | 200,193 |
| Fifth Third Bancorp | 7,286,972 | 108,211 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| |
| JPMorgan Chase (2) | 2,700,111 | 243,091 |
| PNC Financial Services Group | 593,400 | 56,800 |
| Truist Financial | 816,400 | 25,178 |
| Wells Fargo | 6,742,669 | 193,515 |
| | | 1,177,006 |
| Capital Markets 3.9% | | |
| Charles Schwab (2) | 2,947,261 | 99,087 |
| CME Group | 740,580 | 128,054 |
| E*TRADE Financial | 3,101,358 | 106,438 |
| Intercontinental Exchange | 915,900 | 73,959 |
| Morgan Stanley | 10,197,000 | 346,698 |
| State Street | 359,486 | 19,150 |
| | | 773,386 |
| Diversified Financial Services 0.7% | | |
| Equitable Holdings | 10,358,412 | 149,679 |
| | | 149,679 |
| Insurance 5.8% | | |
| American International Group (2) | 17,802,787 | 431,718 |
| Chubb | 2,389,643 | 266,899 |
| Hartford Financial Services Group | 1,578,500 | 55,626 |
| Marsh & McLennan | 1,998,047 | 172,751 |
| MetLife | 3,942,500 | 120,522 |
| Willis Towers Watson | 592,971 | 100,716 |
| | | 1,148,232 |
| Total Financials | | 3,248,303 |
| HEALTH CARE 15.6% | | |
| |
| Biotechnology 2.5% | | |
| AbbVie | 5,777,158 | 440,162 |
| Biogen (1) | 171,400 | 54,227 |
| | | 494,389 |
| Health Care Equipment & Supplies 7.5% | | |
| Becton Dickinson & Company | 872,506 | 200,476 |
| Boston Scientific (1) | 5,879,670 | 191,853 |
| Danaher | 5,231,997 | 724,161 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| Envista Holdings (1)(2) | 3,705,221 | 55,356 |
| Medtronic | 727,537 | 65,609 |
| Stryker | 1,030,500 | 171,568 |
| Zimmer Biomet Holdings (2) | 738,433 | 74,641 |
| | | 1,483,664 |
| Health Care Providers & Services 2.2% | | |
| Anthem | 676,101 | 153,502 |
| CVS Health | 666,600 | 39,549 |
| HCA Healthcare | 1,188,300 | 106,769 |
| UnitedHealth Group | 540,200 | 134,715 |
| | | 434,535 |
| Life Sciences Tools & Services 2.6% | | |
| Agilent Technologies (2) | 1,560,610 | 111,771 |
| Thermo Fisher Scientific | 1,438,946 | 408,085 |
| | | 519,856 |
| Pharmaceuticals 0.8% | | |
| Bausch Health (1)(2) | 1,307,461 | 20,266 |
| Elanco Animal Health (1) | 6,379,324 | 142,833 |
| | | 163,099 |
| Total Health Care | | 3,095,543 |
| INDUSTRIALS & BUSINESS SERVICES 9.5% | | |
| Aerospace & Defense 0.4% | | |
| Boeing | 582,500 | 86,874 |
| | | 86,874 |
| Airlines 0.0% | | |
| United Airlines Holdings (1) | 29,273 | 924 |
| | | 924 |
| Construction & Engineering 0.9% | | |
| Jacobs Engineering Group (2) | 2,347,915 | 186,119 |
| | | 186,119 |
| Electrical Equipment 0.3% | | |
| Rockwell Automation | 421,800 | 63,654 |
| | | 63,654 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| |
| Industrial Conglomerates 4.9% | | |
| General Electric | 94,131,700 | 747,406 |
| Honeywell International | 934,579 | 125,037 |
| Roper Technologies | 331,806 | 103,460 |
| | | 975,903 |
| Machinery 1.6% | | |
| Caterpillar | 89,300 | 10,362 |
| Cummins | 327,100 | 44,263 |
| Deere | 1,834,500 | 253,455 |
| | | 308,080 |
| Road & Rail 1.4% | | |
| Norfolk Southern (2) | 942,077 | 137,543 |
| Union Pacific | 973,400 | 137,289 |
| | | 274,832 |
| Total Industrials & Business Services | | 1,896,386 |
| INFORMATION TECHNOLOGY 19.2% | | |
| Communications Equipment 1.2% | | |
| Motorola Solutions | 1,829,304 | 243,151 |
| | | 243,151 |
| Electronic Equipment, Instruments & Components 1.1% | | |
| Keysight Technologies (1) | 2,654,494 | 222,128 |
| | | 222,128 |
| IT Services 0.3% | | |
| Fidelity National Information Services | 407,951 | 49,623 |
| | | 49,623 |
| Semiconductors & Semiconductor Equipment 10.6% | | |
| Applied Materials | 7,509,020 | 344,063 |
| ASML Holding | 191,530 | 50,112 |
| Broadcom | 418,326 | 99,185 |
| Intel | 2,014,700 | 109,036 |
| Micron Technology (1) | 4,754,465 | 199,973 |
| NVIDIA | 472,800 | 124,630 |
| NXP Semiconductors | 3,318,836 | 275,231 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| QUALCOMM | 7,730,276 | 522,953 |
| Texas Instruments | 2,404,943 | 240,326 |
| Xilinx (2) | 1,814,900 | 141,453 |
| | | 2,106,962 |
| Software 6.0% | | |
| Microsoft | 6,546,166 | 1,032,396 |
| Synopsys (1) | 1,275,220 | 164,236 |
| | | 1,196,632 |
| Total Information Technology | | 3,818,496 |
| MATERIALS 5.2% | | |
| Chemicals 3.5% | | |
| DuPont de Nemours | 1,246,800 | 42,516 |
| Linde | 3,001,500 | 519,259 |
| PPG Industries | 1,686,600 | 141,000 |
| | | 702,775 |
| Containers & Packaging 1.7% | | |
| Ball | 36,300 | 2,347 |
| International Paper | 1,736,987 | 54,073 |
| Packaging Corp. of America (2) | 2,752,277 | 238,980 |
| Westrock | 1,170,300 | 33,073 |
| | | 328,473 |
| Total Materials | | 1,031,248 |
| REAL ESTATE 4.4% | | |
| Equity Real Estate Investment Trusts 4.4% | | |
| Digital Realty Trust, REIT (2) | 1,177,586 | 163,578 |
| Prologis, REIT | 8,534,951 | 685,954 |
| Weyerhaeuser, REIT | 1,823,899 | 30,915 |
| Total Real Estate | | 880,447 |
| UTILITIES 13.1% | | |
| Electric Utilities 9.1% | | |
| American Electric Power | 1,518,894 | 121,481 |
| Edison International | 4,873,734 | 267,032 |
| Entergy | 1,978,903 | 185,957 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| NextEra Energy (2) | 4,027,271 | 969,042 |
| Southern | 4,934,439 | 267,151 |
| | | 1,810,663 |
| Multi-Utilities 4.0% | | |
| Ameren (2) | 2,331,001 | 169,767 |
| CenterPoint Energy | 6,374,200 | 98,481 |
| Dominion Energy | 220,000 | 15,882 |
| NiSource (2) | 3,137,287 | 78,338 |
| Sempra Energy | 3,859,075 | 436,037 |
| | | 798,505 |
| Total Utilities | | 2,609,168 |
| Total Common Stocks (Cost $20,739,516) | | 19,545,670 |
| |
| CONVERTIBLE PREFERRED STOCKS 1.4% | | |
| HEALTH CARE 0.2% | | |
| Health Care Equipment & Supplies 0.2% | | |
| Becton Dickinson & Company, Series A, 6.125%, 5/1/20 | 797,222 | 43,672 |
| | | 43,672 |
| Pharmaceuticals 0.0% | | |
| Elanco Animal Health, 5.00%, 2/1/23 (2) | 162,081 | 6,682 |
| | | 6,682 |
| Total Health Care | | 50,354 |
| INDUSTRIALS & BUSINESS SERVICES 0.1% | | |
| Machinery 0.1% | | |
| Fortive, Series A, 5.00%, 7/1/21 | 37,574 | 27,119 |
| Total Industrials & Business Services | | 27,119 |
| INFORMATION TECHNOLOGY 0.3% | | |
| Semiconductors & Semiconductor Equipment 0.3% | | |
| Broadcom, Series A, 8.00%, 9/30/22 (2) | 58,377 | 56,338 |
| Total Information Technology | | 56,338 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | |
| | Shares/Par | $ Value |
| (Cost and value in $000s) | | |
| UTILITIES 0.8% | | |
| Electric Utilities 0.5% | | |
| Southern, Series A, 6.75%, 8/1/22 | 1,941,816 | 89,592 |
| | | 89,592 |
| Multi-Utilities 0.3% | | |
| Sempra Energy, Series A, 6.00%, 1/15/21 | 438,937 | 41,189 |
| Sempra Energy, Series B, 6.75%, 7/15/21 (2) | 229,553 | 21,556 |
| | | 62,745 |
| Total Utilities | | 152,337 |
| Total Convertible Preferred Stocks (Cost $308,899) | | 286,148 |
| |
| CORPORATE BONDS 0.0% | | |
| Occidental Petroleum, 2.60%, 8/13/21 | 9,699,000 | 7,759 |
| Total Corporate Bonds (Cost $6,435) | | 7,759 |
| |
| SHORT-TERM INVESTMENTS 0.3% | | |
| Money Market Funds 0.3% | | |
| T. Rowe Price Government Reserve Fund, 0.95% (3)(4) | 50,046,792 | 50,047 |
| Total Short-Term Investments (Cost $50,047) | | 50,047 |
| |
| SECURITIES LENDING COLLATERAL 0.6% | | |
| Investments in a Pooled Account through Securities Lending | | |
| Program with State Street Bank and Trust Company 0.6% | | |
| Short-Term Funds 0.6% | | |
| T. Rowe Price Short-Term Fund, 1.28% (3)(4) | 11,573,866 | 115,739 |
| Total Investments in a Pooled Account through Securities Lending Program with | |
| State Street Bank and Trust Company | | 115,739 |
| Total Securities Lending Collateral (Cost $115,739) | | 115,739 |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
| | | |
| | | $ Value |
| (Cost and value in $000s) | | |
| Total Investments in Securities 100.5% | | |
| (Cost $21,220,636) | $ | 20,005,363 |
| Other Assets Less Liabilities (0.5)% | | (99,898) |
| Net Assets 100.0% | $ | 19,905,465 |
| | |
| ‡ | Shares/Par are denominated in U. S. dollars unless otherwise noted. |
| (1) | Non-income producing |
| (2) | All or a portion of this security is on loan at March 31, 2020. |
| (3) | Affiliated Companies |
| (4) | Seven-day yield |
| ADR | American Depositary Receipts |
| REIT | A domestic Real Estate Investment Trust whose distributions pass-through |
| | with original tax character to the shareholder |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE 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 three
months ended March 31, 2020. Net realized gain (loss), investment income, change in net
unrealized gain/loss, and purchase and sales cost reflect all activity for the period then ended.
| | | | | | | | | |
| | | | | | Change in Net | | |
| | | | Net Realized Gain | | Unrealized | Investment |
| Affiliate | | | (Loss) | | Gain/Loss | | Income |
| T. Rowe Price Government | | | | | | |
| Reserve Fund | | $ | — | $ | — | $ | 288 |
| T. Rowe Price Short-Term Fund | | — | | — | | —++ |
| Totals | | $ | —# | $ | — | $ | 288+ |
| |
| Supplementary Investment Schedule | | | | | |
| | | | Value | Purchase | Sales | | Value |
| Affiliate | | 12/31/19 | Cost | Cost | | 3/31/20 |
| T. Rowe Price Government | | | | | | |
| Reserve Fund | $ | 171,026 | | ¤ | ¤ | $ | 50,047 |
| T. Rowe Price Short-Term | | | | | | |
| Fund | | 184,094 | | ¤ | ¤ | | 115,739 |
| | | | | | | | $ | 165,786^ |
| # | 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 $288 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 $165,786. | | |
The accompanying notes are an integral part of this Portfolio of Investments.
T. ROWE PRICE VALUE FUND
Unaudited
NOTES TO PORTFOLIO OF
INVESTMENTS
T. Rowe Price Value 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.
T. ROWE PRICE VALUE FUND
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
more than one exchange is valued at the quotation on the exchange determined to be the primary market for such
security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices.
Actively traded equity securities listed on a domestic exchange generally are categorized in Level 1 of the fair value
hierarchy. OTC Bulletin Board securities, certain preferred securities, and equity securities traded in inactive markets
generally are categorized in Level 2 of the fair value hierarchy.
Debt securities generally are traded in the OTC market and are valued at prices furnished by independent pricing
services or by broker dealers who make markets in such securities. When valuing securities, the independent pricing
services consider the yield or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted
by dealers who make markets in such securities. Generally, debt securities are categorized in Level 2 of the fair value
hierarchy; however, to the extent the valuations include significant unobservable inputs, the securities would be categorized
in Level 3.
Investments in mutual funds are valued at the mutual fund’s closing NAV per share on the day of valuation and are
categorized in Level 1 of the fair value hierarchy.
Thinly traded financial instruments and those for which the above valuation procedures are inappropriate or are
deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee. The
objective of any fair value pricing determination is to arrive at a price that could reasonably be expected from a current
sale. Financial instruments fair valued by the Valuation Committee are primarily private placements, restricted
securities, warrants, rights, and other securities that are not publicly traded.
Subject to oversight by the Board, the Valuation Committee regularly makes good faith judgments to establish and
adjust the fair valuations of certain securities as events occur and circumstances warrant. For instance, in determining
the fair value of an equity investment with limited market activity, such as a private placement or a thinly traded public
company stock, the Valuation Committee considers a variety of factors, which may include, but are not limited to, the
issuer’s business prospects, its financial standing and performance, recent investment transactions in the issuer, new
rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market
valuations of peer companies, strategic events affecting the company, market liquidity for the issuer, and general
economic conditions and events. In consultation with the investment and pricing teams, the Valuation Committee will
determine an appropriate valuation technique based on available information, which may include both observable and
unobservable inputs. The Valuation Committee typically will afford greatest weight to actual prices in arm’s length
transactions, to the extent they represent orderly transactions between market participants, transaction information can
be reliably obtained, and prices are deemed representative of fair value. However, the Valuation Committee may also
consider other valuation methods such as market-based valuation multiples; a discount or premium from market value
of a similar, freely traded security of the same issuer; or some combination. Fair value determinations are reviewed on a
regular basis and updated as information becomes available, including actual purchase and sale transactions of the
issue. Because any fair value determination involves a significant amount of judgment, there is a degree of subjectivity
inherent in such pricing decisions, and fair value prices determined by the Valuation Committee could differ from
those of other market participants. Depending on the relative significance of unobservable inputs, including the
valuation technique(s) used, fair valued securities may be categorized in Level 2 or 3 of the fair value hierarchy.
T. ROWE PRICE VALUE FUND
Valuation Inputs
The following table summarizes the fund’s financial instruments, based on the inputs used to determine their fair values
on March 31, 2020 (for further detail by category, please refer to the accompanying Portfolio of Investments):
| | | | | | | |
| ($000s) | | Level 1 | Level 2 | Level 3 | Total Value |
| Assets | | | | | |
| Common Stocks | $ | 19,545,670 | $ — | $ — | $ 19,545,670 |
| Convertible Preferred Stocks | | — | 286,148 | — | 286,148 |
| Fixed Income Securities1 | | — | 7,759 | — | 7,759 |
| Short-Term Investments | | 50,047 | — | — | 50,047 |
| Securities Lending Collateral | | 115,739 | — | — | 115,739 |
| Total | $ | 19,711,456 | $ 293,907 | $ — | $ 20,005,363 |
| |
| 1Includes Corporate Bonds. | | | | | |
