T. Rowe Price Tax-Efficient Equity Fund 公布2026年8月31日半年度财务数据
T. Rowe Price Tax-Efficient Funds, Inc. (0001038490) (Filer)
T. Rowe Price Tax-Efficient Equity Fund 在截至2026年8月31日的六个月内总资产达15.15亿美元，总回报率11.61%。I Class期末每股净资产93.85美元，费用限制为0.05%。基金投资组合高度集中于信息技术和通信服务行业。
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: 811-08207
T. Rowe Price Tax-Efficient Funds, Inc.
(Exact name of registrant as specified in charter)
1307 Point Street, Baltimore, MD 21231
(Address of principal executive offices)
David Oestreicher
1307 Point Street, Baltimore, MD 21231
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: February 28
Date of reporting period: August 31, 2026
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Semi-Annual Shareholder Report
August 31, 2026
Tax-Efficient Equity Fund
Investor Class (PREFX)
This semi-annual shareholder report contains important information about Tax-Efficient Equity Fund (the "fund") for the period of March 1, 2026 to August 31, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or [email protected] or contacting your intermediary.
What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment | |
|---|---|---|
Tax-Efficient Equity Fund - Investor Class |
$45 |
0.84% |
What are some fund statistics?
Fund Statistics
Total Net Assets (000s) |
$1,515,319 |
|---|---|
Number of Portfolio Holdings |
400 |
Portfolio Turnover Rate |
9.9% |
|---|
What did the fund invest in?
Sector Allocation (as a % of Net Assets)
Information Technology |
53.6% |
|---|---|
Communication Services |
14.9 |
Industrials & Business Services |
7.8 |
Consumer Discretionary |
7.1 |
Health Care |
6.6 |
Financials |
6.1 |
Consumer Staples |
1.8 |
Energy |
0.8 |
Materials |
0.6 |
Other |
0.7 |
Top Ten Holdings (as a % of Net Assets)
NVIDIA |
14.2% |
|---|---|
Alphabet |
10.2 |
Apple |
7.3 |
Microsoft |
6.2 |
Broadcom |
4.7 |
Micron Technology |
2.7 |
Eli Lilly |
2.6 |
Meta Platforms |
2.6 |
Tesla |
2.4 |
Advanced Micro Devices |
2.3 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
202505-4461501
F136-053 10/26
Tax-Efficient Equity Fund
Investor Class (PREFX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
Semi-Annual Shareholder Report
August 31, 2026
Tax-Efficient Equity Fund
I Class (TEEFX)
This semi-annual shareholder report contains important information about Tax-Efficient Equity Fund (the "fund") for the period of March 1, 2026 to August 31, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or [email protected] or contacting your intermediary.
What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment | |
|---|---|---|
Tax-Efficient Equity Fund - I Class |
$36 |
0.68% |
What are some fund statistics?
Fund Statistics
Total Net Assets (000s) |
$1,515,319 |
|---|---|
Number of Portfolio Holdings |
400 |
Portfolio Turnover Rate |
9.9% |
|---|
What did the fund invest in?
Sector Allocation (as a % of Net Assets)
Information Technology |
53.6% |
|---|---|
Communication Services |
14.9 |
Industrials & Business Services |
7.8 |
Consumer Discretionary |
7.1 |
Health Care |
6.6 |
Financials |
6.1 |
Consumer Staples |
1.8 |
Energy |
0.8 |
Materials |
0.6 |
Other |
0.7 |
Top Ten Holdings (as a % of Net Assets)
NVIDIA |
14.2% |
|---|---|
Alphabet |
10.2 |
Apple |
7.3 |
Microsoft |
6.2 |
Broadcom |
4.7 |
Micron Technology |
2.7 |
Eli Lilly |
2.6 |
Meta Platforms |
2.6 |
Tesla |
2.4 |
Advanced Micro Devices |
2.3 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.
202505-4461501
F1091-053 10/26
Tax-Efficient Equity Fund
I Class (TEEFX)
T. Rowe Price Investment Services, Inc.
1307 Point Street
Baltimore, Maryland 21231
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 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a – b) Report pursuant to Regulation S-X.
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
August
31,
2026
Financial
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PREFX
Tax-Efficient
Equity
Fund
TEEFX
Tax-Efficient
Equity
Fund–
.
I Class
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Financial
Highlights
2
For
a
share
outstanding
throughout
each
period
Investor
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
NET
ASSET
VALUE
Beginning
of
period
$
83
.57
$
74
.06
$
63
.27
$
44
.43
$
52
.30
$
51
.35
Investment
activities
Net
investment
income
(loss)
(1)(2)
(
0
.15
)
(
0
.26
)
(
0
.20
)
(
0
.05
)
0
.01
(
0
.14
)
Net
realized
and
unrealized
gain/
loss
9
.85
9
.77
11
.63
19
.24
(
7
.51
)
2
.36
Total
from
investment
activities
9
.70
9
.51
11
.43
19
.19
(
7
.50
)
2
.22
Distributions
Net
realized
gain
—
—
(
0
.64
)
(
0
.35
)
(
0
.37
)
(
1
.27
)
NET
ASSET
VALUE
End
of
period
$
93
.27
$
83
.57
$
74
.06
$
63
.27
$
44
.43
$
52
.30
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Financial
Highlights
3
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
Ratios/Supplemental
Data
Total
return
(2)(3)
11
.61
%
12
.84
%
18
.01
%
43
.28
%
(
14
.32
)
%
4
.01
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.84
%
(4)
0
.82
%
0
.82
%
0
.83
%
0
.85
%
0
.76
%
Net
expenses
after
waivers/
payments
by
Price
Associates
0
.84
%
(4)
0
.82
%
0
.82
%
0
.83
%
0
.85
%
0
.76
%
Net
investment
income
(loss)
(
0
.34
)
%
(4)
(
0
.32
)
%
(
0
.28
)
%
(
0
.10
)
%
0
.03
%
(
0
.25
)
%
Portfolio
turnover
rate
9
.9
%
17
.0
%
8
.0
%
16
.8
%
21
.2
%
9
.6
%
Net
assets,
end
of
period
(in
thousands)
$457,495
$422,850
$392,679
$358,258
$250,733
$412,425
0
%
0
%
0
%
0
%
0
%
0
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
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)
Annualized
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Financial
Highlights
4
For
a
share
outstanding
throughout
each
period
I
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
NET
ASSET
VALUE
Beginning
of
period
$
84
.02
$
74
.36
$
63
.44
$
44
.53
$
52
.39
$
51
.40
Investment
activities
Net
investment
income
(loss)
(1)(2)
(
0
.08
)
(
0
.15
)
(
0
.11
)
0
.02
0
.09
(
0
.07
)
Net
realized
and
unrealized
gain/
loss
9
.91
9
.81
11
.67
19
.29
(
7
.53
)
2
.33
Total
from
investment
activities
9
.83
9
.66
11
.56
19
.31
(
7
.44
)
2
.26
Distributions
Net
investment
income
—
—
—
(
0
.05
)
(
0
.05
)
—
Net
realized
gain
—
—
(
0
.64
)
(
0
.35
)
(
0
.37
)
(
1
.27
)
Total
distributions
—
—
(
0
.64
)
(
0
.40
)
(
0
.42
)
(
1
.27
)
NET
ASSET
VALUE
End
of
period
$
93
.85
$
84
.02
$
74
.36
$
63
.44
$
44
.53
$
52
.39
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Financial
Highlights
5
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
6
Months
.
Ended
8/31/26
..
Year
..
..
Ended
.
2/28/26
2/28/25
2/29/24
2/28/23
2/28/22
Ratios/Supplemental
Data
Total
return
(2)(3)
11
.70
%
12
.99
%
18
.16
%
43
.46
%
(
14
.18
)
%
4
.08
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.70
%
(4)
0
.68
%
0
.68
%
0
.69
%
0
.70
%
0
.68
%
Net
expenses
after
waivers/
payments
by
Price
Associates
0
.68
%
(4)
0
.68
%
0
.68
%
0
.69
%
0
.69
%
0
.68
%
Net
investment
income
(loss)
(
0
.19
)
%
(4)
(
0
.19
)
%
(
0
.15
)
%
0
.04
%
0
.19
%
(
0
.12
)
%
Portfolio
turnover
rate
9
.9
%
17
.0
%
8
.0
%
16
.8
%
21
.2
%
9
.6
%
Net
assets,
end
of
period
(in
thousands)
$1,057,824
$943,341
$838,527
$669,527
$454,269
$429,930
0
%
0
%
0
%
0
%
0
%
0
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
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)
Annualized
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
August
31,
2026
Unaudited
6
Portfolio
of
Investments
‡
Shares
$
Value
(Cost
and
value
in
$000s)
‡
COMMON
STOCKS
99.4%
COMMUNICATION
SERVICES
14.9%
Diversified
Telecommunication
Services
0.2%
AST
SpaceMobile (1)(2)
6,400
378
Space
Exploration
Technologies (1)
22,507
3,234
3,612
Entertainment
1.6%
Liberty
Media
Corp-Liberty
Formula
One,
Class
C (1)
3,600
360
Live
Nation
Entertainment (1)
21,600
3,886
Netflix (1)
169,200
13,714
ROBLOX,
Class
A (1)
7,000
289
Roku (1)
1,200
188
Sphere
Entertainment (1)(2)
800
109
Spotify
Technology (1)
6,556
3,564
Take-Two
Interactive
Software (1)
2,902
637
TKO
Group
Holdings
8,600
1,570
24,317
Interactive
Media
&
Services
12.8%
Alphabet,
Class
C
459,580
154,148
Meta
Platforms,
Class
A
67,900
38,862
Reddit,
Class
A (1)
8,024
1,186
194,196
Media
0.3%
AppLovin,
Class
A (1)
12,500
3,901
EchoStar,
Class
A (1)(2)
1,000
86
3,987
Total
Communication
Services
226,112
CONSUMER
DISCRETIONARY
7.1%
Automobiles
2.5%
Ferrari (2)
3,240
1,369
Tesla (1)
100,075
36,823
38,192
Broadline
Retail
1.4%
Amazon.com (1)
77,360
20,096
Coupang (1)
12,900
207
eBay
1,400
145
MercadoLibre (1)
500
968
Ollie's
Bargain
Outlet
Holdings (1)
992
75
21,491
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
7
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Diversified
Consumer
Services
0.1%
Service
Corp.
International (2)
15,880
1,296
1,296
Hotels,
Restaurants
&
Leisure
1.4%
Booking
Holdings
36,500
7,267
Cava
Group (1)
2,850
187
Chipotle
Mexican
Grill (1)
6,000
228
Darden
Restaurants
3,100
664
Domino's
Pizza
300
103
Dutch
Bros,
Class
A (1)(2)
31,400
1,534
Expedia
Group
4,300
1,364
Hilton
Worldwide
Holdings
15,900
5,029
Hyatt
Hotels,
Class
A (2)
3,600
601
Las
Vegas
Sands
2,500
109
Royal
Caribbean
Cruises
5,625
1,512
Texas
Roadhouse
1,150
225
Viking
Holdings (1)
30,776
2,651
Wingstop
400
44
Yum!
Brands
2,100
322
21,840
Household
Durables
0.0%
SharkNinja (1)
1,350
260
Somnigroup
International (2)
1,000
65
325
Specialty
Retail
1.5%
Boot
Barn
Holdings (1)
600
90
Burlington
Stores (1)
3,675
955
Carvana (1)
49,125
3,609
Chewy,
Class
A (1)
4,500
107
Five
Below (1)
500
123
Home
Depot
21,340
6,996
Murphy
USA
500
258
O'Reilly
Automotive (1)
14,650
1,301
Ross
Stores
4,150
948
TJX
49,877
6,679
Tractor
Supply
7,375
257
Ulta
Beauty (1)
800
430
Valvoline (1)(2)
9,200
295
Wayfair,
Class
A (1)
2,600
258
Williams-Sonoma
600
137
22,443
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
8
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Textiles,
Apparel
&
Luxury
Goods
0.2%
Amer
Sports (1)
3,000
92
Birkenstock
Holding (1)
2,100
73
Deckers
Outdoor (1)
1,100
96
Ralph
Lauren
5,600
1,942
Tapestry
6,200
765
2,968
Total
Consumer
Discretionary
108,555
CONSUMER
STAPLES
1.8%
Beverages
0.2%
Celsius
Holdings (1)(2)
2,000
63
Coca-Cola
37,000
3,281
Primo
Brands (2)
2,000
45
3,389
Consumer
Staples
Distribution
&
Retail
1.0%
BJ's
Wholesale
Club
Holdings (1)
2,225
202
Casey's
General
Stores
1,550
1,166
Costco
Wholesale
9,500
8,967
Dollar
General
700
89
Performance
Food
Group (1)
1,100
109
U.S.
Foods
Holding (1)
9,750
1,022
Walmart
28,000
2,936
14,491
Food
Products
0.0%
Freshpet (1)
900
63
McCormick
2,200
119
182
Household
Products
0.2%
Colgate-Palmolive
29,000
2,605
2,605
Personal
Care
Products
0.1%
Estee
Lauder,
Class
A
11,200
1,146
1,146
Tobacco
0.3%
Philip
Morris
International
24,700
4,626
4,626
Total
Consumer
Staples
26,439
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
9
Shares
$
Value
(Cost
and
value
in
$000s)
‡
ENERGY
0.8%
Energy
Equipment
&
Services
0.0%
TechnipFMC
3,300
258
258
Oil,
Gas
&
Consumable
Fuels
0.8%
Cameco
3,500
346
Cheniere
Energy
2,250
656
Diamondback
Energy
9,900
1,985
EQT
2,100
114
HF
Sinclair
5,150
523
Marathon
Petroleum
500
187
Ovintiv
4,600
302
Permian
Resources,
Class
A
7,700
179
Targa
Resources
23,400
6,872
Texas
Pacific
Land
1,000
374
Uranium
Energy (1)(2)
10,000
122
11,660
Total
Energy
11,918
FINANCIALS
6.1%
Banks
0.0%
East
West
Bancorp
2,100
266
266
Capital
Markets
2.3%
Ameriprise
Financial
2,500
1,383
Ares
Management,
Class
A
5,100
730
Bank
of
New
York
Mellon
30,350
4,895
Blackrock
2,400
2,774
Cboe
Global
Markets
300
90
CME
Group
9,310
2,658
iCapital,
Acquisition
Date:
3/10/25
-
4/17/25,
Cost $109 (1)(3)(4)
7,765
132
Interactive
Brokers
Group,
Class
A
53,000
5,156
Lazard
2,500
108
LPL
Financial
Holdings
2,200
814
Moody's
6,461
3,261
Morgan
Stanley
13,300
2,837
MSCI
4,650
2,654
Nasdaq
1,400
138
Northern
Trust
700
130
Robinhood
Markets,
Class
A (1)
11,700
1,226
S&P
Global
5,337
2,326
State
Street
300
57
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
10
Shares
$
Value
(Cost
and
value
in
$000s)
‡
StepStone
Group,
Class
A (2)
2,300
120
Tradeweb
Markets,
Class
A
14,640
1,577
Virtu
Financial,
Class
A
19,200
1,260
34,326
Consumer
Finance
0.0%
FirstCash
Holdings
250
54
SLM
3,000
78
132
Financial
Services
3.5%
Affirm
Holdings (1)
4,900
365
Block (1)
6,500
533
Corpay (1)
2,150
869
Mastercard,
Class
A
36,200
21,333
Rocket,
Class
A (1)
1,000
14
Toast,
Class
A (1)
10,000
341
Visa,
Class
A
77,600
29,439
52,894
Insurance
0.3%
Allstate
650
168
Arthur
J
Gallagher
6,100
1,599
Globe
Life
1,600
276
Hanover
Insurance
Group
692
157
Marsh
&
McLennan
8,500
1,613
3,813
Total
Financials
91,431
HEALTH
CARE
6.6%
Biotechnology
1.1%
Alnylam
Pharmaceuticals (1)
3,174
764
Argenx,
ADR (1)
4,343
4,481
Arrowhead
Pharmaceuticals (1)
1,400
115
Ascendis
Pharma (1)
600
158
BeOne
Medicines,
ADR (1)
650
234
Bridgebio
Pharma (1)
1,700
130
CG
oncology (1)
2,100
158
Cogent
Biosciences (1)
3,300
116
Cytokinetics (1)
1,700
121
Insmed (1)
6,050
737
Ionis
Pharmaceuticals (1)(2)
1,500
91
Krystal
Biotech (1)
500
180
Kymera
Therapeutics (1)(2)
7,500
891
Madrigal
Pharmaceuticals (1)
200
108
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
11
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Mirum
Pharmaceuticals (1)
1,200
118
Natera (1)
5,950
1,916
Neurocrine
Biosciences (1)
1,145
176
Praxis
Precision
Medicines (1)
400
140
Revolution
Medicines (1)
5,100
1,048
Rhythm
Pharmaceuticals (1)
1,200
127
Spyre
Therapeutics (1)
1,200
107
Summit
Therapeutics (1)
4,500
61
Travere
Therapeutics (1)
1,800
119
Twist
Bioscience (1)
1,000
139
United
Therapeutics (1)
200
102
Vaxcyte (1)
1,800
109
Vertex
Pharmaceuticals (1)
7,799
4,247
Xenon
Pharmaceuticals (1)
2,200
132
16,825
Health
Care
Equipment
&
Supplies
0.6%
Boston
Scientific (1)
15,000
725
Dexcom (1)
11,278
1,027
Edwards
Lifesciences (1)
1,400
127
Glaukos (1)
1,000
180
IDEXX
Laboratories (1)
5,262
2,929
Insulet (1)
100
15
Intuitive
Surgical (1)
8,991
3,388
8,391
Health
Care
Providers
&
Services
1.7%
Billiontoone (1)(2)
900
82
BrightSpring
Health
Services (1)
41,600
2,429
Cardinal
Health
6,175
1,449
Cencora
14,600
4,724
Centene (1)
2,500
161
DaVita (1)
600
106
Encompass
Health
23,700
2,849
Guardant
Health (1)
1,300
207
HCA
Healthcare
5,750
2,383
McKesson
8,500
7,525
Quest
Diagnostics
1,300
312
RadNet (1)(2)
1,500
114
Tenet
Healthcare (1)
1,400
372
UnitedHealth
Group
7,100
2,765
25,478
Health
Care
Technology
0.2%
Veeva
Systems,
Class
A (1)
7,692
2,198
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
12
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Waystar
Holding (1)
4,400
115
2,313
Life
Sciences
Tools
&
Services
0.4%
Charles
River
Laboratories
International (1)
500
144
Medpace
Holdings (1)
4,050
2,406
Mettler-Toledo
International (1)
1,313
1,845
Repligen (1)(2)
700
127
Thermo
Fisher
Scientific
2,719
1,678
West
Pharmaceutical
Services
400
136
6,336
Pharmaceuticals
2.6%
Axsome
Therapeutics (1)
600
119
Corcept
Therapeutics (1)
900
102
Elanco
Animal
Health (1)(2)
5,600
134
Eli
Lilly
33,800
39,097
Zoetis
500
39
39,491
Total
Health
Care
98,834
INDUSTRIALS
&
BUSINESS
SERVICES
7.8%
Aerospace
&
Defense
3.1%
Arxis,
Class
A (1)(2)
4,528
234
ATI (1)
1,200
245
Axon
Enterprise (1)
4,900
2,776
Boeing (1)
34,400
7,148
BWX
Technologies
1,400
213
Carpenter
Technology
500
238
Curtiss-Wright
3,500
2,039
FTAI
Aviation
5,150
979
General
Electric
51,600
17,323
HEICO
4,000
1,325
Howmet
Aerospace
35,000
8,573
Karman
Holdings (1)(2)
2,600
108
Kratos
Defense
&
Security
Solutions (1)
1,500
76
Leonardo
DRS
2,200
84
Loar
Holdings (1)(2)
1,860
130
Northrop
Grumman
2,500
1,349
Rocket
Lab (1)
17,550
1,122
StandardAero (1)
3,876
95
TransDigm
Group
1,928
2,259
Woodward
500
170
46,486
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
13
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Building
Products
0.3%
AAON (2)
2,100
159
Madison
Air
Solutions,
Class
A (1)
3,092
82
Modine
Manufacturing (1)
500
89
Trane
Technologies
9,000
4,000
4,330
Commercial
Services
&
Supplies
0.3%
Cintas
11,700
2,361
Clean
Harbors (1)
500
158
Republic
Services
6,400
1,414
Veralto
13,200
1,301
5,234
Construction
&
Engineering
0.8%
API
Group (1)
4,387
172
Argan
300
128
Comfort
Systems
USA
3,600
5,564
Construction
Partners,
Class
A (1)(2)
1,100
117
EMCOR
Group
900
661
MasTec (1)
1,000
240
Quanta
Services
9,150
5,555
12,437
Electrical
Equipment
1.5%
DPC
Holdings (1)
2,000
84
Eaton
6,200
2,492
GE
Vernova
12,200
10,962
Hubbell
7,900
3,579
Innio (1)
2,100
42
nVent
Electric
2,100
316
Powell
Industries (2)
1,100
198
Rockwell
Automation
903
383
Vertiv
Holdings,
Class
A
15,275
3,952
Vicor (1)
5,100
957
22,965
Ground
Transportation
0.2%
Old
Dominion
Freight
Line
12,184
2,436
XPO (1)
1,200
233
2,669
Machinery
0.9%
Caterpillar
12,100
9,649
Deere
2,447
1,603
Esab
1,175
89
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
14
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Mueller
Industries
2,000
125
RBC
Bearings (1)
4,600
2,274
Symbotic (1)(2)
2,500
99
Westinghouse
Air
Brake
Technologies
600
171
14,010
Passenger
Airlines
0.0%
Delta
Air
Lines
2,400
187
United
Airlines
Holdings (1)
1,700
184
371
Professional
Services
0.2%
Automatic
Data
Processing
5,500
1,574
Booz
Allen
Hamilton
Holding
1,626
123
Broadridge
Financial
Solutions
2,461
449
CACI
International,
Class
A (1)(2)
300
187
Equifax
465
88
ExlService
Holdings (1)
2,000
76
Paychex
700
89
Paylocity
Holding (1)
1,000
160
Planet
Labs (1)
3,000
60
UL
Solutions,
Class
A (2)
8,500
633
Verisk
Analytics
1,681
326
3,765
Trading
Companies
&
Distributors
0.5%
Applied
Industrial
Technologies
500
162
Fastenal
73,000
3,600
Ferguson
Enterprises
7,100
1,594
United
Rentals
100
104
W.W.
Grainger
1,100
1,440
6,900
Total
Industrials
&
Business
Services
119,167
INFORMATION
TECHNOLOGY
53.0%
Communications
Equipment
1.3%
Applied
Optoelectronics (1)(2)
1,000
108
Arista
Networks (1)
51,600
10,097
Ciena (1)
1,800
689
Lumentum
Holdings (1)
5,150
4,711
Motorola
Solutions
8,300
4,028
Viavi
Solutions (1)
8,900
323
19,956
Electronic
Equipment,
Instruments
&
Components
1.4%
Advanced
Energy
Industries
400
111
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
15
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Amphenol,
Class
A
60,900
9,656
Belden (2)
2,000
229
CDW
6,515
988
Celestica (1)
2,800
838
Cognex
1,600
97
Coherent (1)
1,200
333
Corning
27,100
4,031
Fabrinet (1)
3,900
1,610
Flex (1)
1,000
109
Jabil
800
244
Keysight
Technologies (1)
900
290
Sanmina (1)
500
98
TD
SYNNEX
2,400
607
TE
Connectivity
700
144
Teledyne
Technologies (1)
2,300
1,410
TTM
Technologies (1)
1,200
143
Zebra
Technologies,
Class
A (1)
246
87
21,025
IT
Services
1.0%
Cloudflare,
Class
A (1)
16,125
4,920
CoreWeave,
Class
A (1)
1,000
85
DigitalOcean
Holdings (1)
3,000
332
MongoDB (1)
1,500
680
Okta (1)
3,000
519
Shopify,
Class
A (1)
14,000
2,063
Snowflake (1)
19,850
6,579
Twilio,
Class
A (1)
1,000
236
15,414
Semiconductors
&
Semiconductor
Equipment
28.8%
Advanced
Micro
Devices (1)
75,051
35,328
Allegro
MicroSystems (1)(2)
4,000
145
Analog
Devices
21,675
7,849
ARM
Holdings,
ADR (1)
9,500
2,298
Astera
Labs (1)
4,900
1,455
AXT (1)(2)
1,000
61
Broadcom
193,700
71,735
Cerebras
Systems,
Class
A (1)
4,550
838
Credo
Technology
Group
Holding (1)
2,750
622
Entegris
12,600
1,705
FormFactor (1)
2,700
272
GLOBALFOUNDRIES
1,500
67
Impinj (1)
500
87
KLA
71,000
12,457
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
16
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Lam
Research
57,300
17,275
Lattice
Semiconductor (1)
19,127
2,206
MACOM
Technology
Solutions
Holdings (1)
7,800
2,058
Marvell
Technology
19,000
4,022
MaxLinear (1)
1,400
84
Microchip
Technology
8,100
595
Micron
Technology
42,400
40,650
MKS
400
103
Monolithic
Power
Systems
5,037
6,386
NVIDIA
975,700
215,415
ON
Semiconductor (1)
1,200
89
Onto
Innovation (1)
700
187
Rambus (1)
1,200
104
Semtech (1)
800
106
SiTime (1)
400
226
Skyworks
Solutions
1,900
127
Taiwan
Semiconductor
Manufacturing,
ADR
19,800
8,223
Teradyne
2,850
997
Tower
Semiconductor (1)
13,200
2,707
436,479
Software
12.2%
Appfolio,
Class
A (1)(2)
500
117
Atlassian,
Class
A (1)
800
155
Autodesk (1)
8,141
2,105
BlackBerry (1)
10,000
81
Cadence
Design
Systems (1)
13,889
4,705
Canva,
Class
B,
Acquisition
Date:
8/16/21
-
11/4/21,
Cost $719 (1)(3)(4)
422
502
Circle
Internet
Group (1)
1,000
96
Crowdstrike
Holdings,
Class
A (1)
55,600
12,844
Databricks,
Class
A,
Acquisition
Date:
7/24/20
-
8/28/20,
Cost $82 (1)(3)(4)
5,133
1,299
Datadog,
Class
A (1)
22,949
5,440
Descartes
Systems
Group (1)
1,100
89
Dynatrace (1)
2,448
134
Elastic (1)
750
73
Fair
Isaac (1)
700
803
Fortinet (1)
34,500
5,897
Guidewire
Software (1)
900
184
HubSpot (1)
1,600
418
Hut
8 (1)
1,000
79
InterDigital (2)
4,793
1,606
Intuit
12,500
4,491
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
17
Shares
$
Value
(Cost
and
value
in
$000s)
‡
JFrog (1)
2,000
200
Manhattan
Associates (1)
1,900
424
Microsoft
184,125
93,405
Nebius
Group (1)(2)
1,700
351
Nutanix,
Class
A (1)
1,900
130
Oracle
53,200
7,933
Palantir
Technologies,
Class
A (1)
91,400
17,035
Palo
Alto
Networks (1)
35,700
13,642
Procore
Technologies (1)
2,200
138
Rubrik,
Class
A (1)
2,600
242
Samsara,
Class
A (1)
45,000
1,838
ServiceNow (1)
29,000
4,292
Snyk,
Acquisition
Date:
9/3/21,
Cost $144 (1)(3)(4)
10,031
42
Socure,
Acquisition
Date:
12/22/21,
Cost $159 (1)(3)(4)
9,912
141
Synopsys (1)
7,328
3,221
Tyler
Technologies (1)
400
149
Zscaler (1)
2,000
377
184,678
Technology
Hardware,
Storage
&
Peripherals
8.3%
Apple
347,000
109,947
Dell
Technologies,
Class
C
8,500
3,876
Everpure,
Class
A (1)
7,850
730
NetApp
1,400
259
Sandisk (1)
4,300
6,737
Seagate
Technology
Holdings
6,000
4,970
126,519
Total
Information
Technology
804,071
MATERIALS
0.6%
Chemicals
0.4%
CF
Industries
Holdings
1,100
143
Ecolab
5,400
1,529
Linde
3,050
1,493
Sensient
Technologies
1,100
149
Sherwin-Williams
6,314
2,139
Solstice
Advanced
Materials
1,500
95
5,548
Containers
&
Packaging
0.0%
Packaging
Corp.
of
America
600
140
140
Metals
&
Mining
0.2%
Almonty
Industries (1)
4,050
72
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
18
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Anglogold
Ashanti
3,200
359
Kinross
Gold
59,477
1,825
MP
Materials (1)(2)
1,900
104
Steel
Dynamics
3,400
791
3,151
Total
Materials
8,839
REAL
ESTATE
0.5%
Health
Care
Real
Estate
Investment
Trusts
0.1%
Ventas,
REIT
18,000
1,641
1,641
Real
Estate
Management
&
Development
0.0%
CBRE
Group,
Class
A (1)
1,400
204
204
Retail
Real
Estate
Investment
Trusts
0.1%
Simon
Property
Group,
REIT
4,800
1,019
1,019
Specialized
Real
Estate
Investment
Trusts
0.3%
Iron
Mountain,
REIT
21,700
2,503
Lamar
Advertising,
Class
A,
REIT
14,250
2,124
4,627
Total
Real
Estate
7,491
UTILITIES
0.2%
Electric
Utilities
0.0%
IDACORP (2)
3,300
450
NRG
Energy
1,300
143
593
Independent
Power
&
Renewable
Electricity
Producers
0.2%
Talen
Energy (1)(2)
400
118
Vistra
18,400
2,528
2,646
Total
Utilities
3,239
Total
Common
Stocks
(Cost
$697,664)
1,506,096
CONVERTIBLE
PREFERRED
STOCKS
0.6%
INFORMATION
TECHNOLOGY
0.6%
Software
0.6%
Canva,
Series
A,
Acquisition
Date:
11/4/21,
Cost $43 (1)(3)(4)
25
30
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
19
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Databricks,
Series
F,
Acquisition
Date:
10/22/19,
Cost $223 (1)
(3)(4)
15,573
3,940
Databricks,
Series
G,
Acquisition
Date:
2/1/21,
Cost $252 (1)
(3)(4)
4,257
1,077
Databricks,
Series
H,
Acquisition
Date:
8/31/21,
Cost $818 (1)
(3)(4)
11,136
2,817
DataRobot,
Series
G,
Acquisition
Date:
6/11/21,
Cost $186 (1)
(3)(4)
6,806
7
Rappi,
Series
E,
Acquisition
Date:
9/8/20,
Cost $523 (1)(3)(4)
8,757
156
Snyk,
Series
F,
Acquisition
Date:
9/3/21
-
12/14/22,
Cost $240 (1)(3)(4)
16,810
71
Socure,
Series
A,
Acquisition
Date:
12/22/21,
Cost $193 (1)(3)
(4)
12,046
172
Socure,
Series
A-1,
Acquisition
Date:
12/22/21,
Cost $159 (1)
(3)(4)
9,887
141
Socure,
Series
B,
Acquisition
Date:
12/22/21,
Cost $3 (1)(3)(4)
178
3
Socure,
Series
E,
Acquisition
Date:
10/27/21,
Cost $368 (1)(3)
(4)
22,915
327
Total
Information
Technology
8,741
Total
Convertible
Preferred
Stocks
(Cost
$3,008)
8,741
SHORT-TERM
INVESTMENTS
0.1%
Money
Market
Funds
0.1%
T.
Rowe
Price
Government
Reserve
Fund,
3.72% (5)(6)
1,255,279
1,255
Total
Short-Term
Investments
(Cost
$1,255)
1,255
SECURITIES
LENDING
COLLATERAL
0.2%
INVESTMENTS
IN
A
POOLED
ACCOUNT
THROUGH
SECURITIES
LENDING
PROGRAM
WITH
STATE
STREET
BANK
AND
TRUST
COMPANY 0.2%
Money
Market
Funds 0.2%
T.
Rowe
Price
Treasury
Reserve
Fund,
3.72% (5)(6)
3,465,298
3,465
Total
Investments
in
a
Pooled
Account
through
Securities
Lending
Program
with
State
Street
Bank
and
Trust
Company
3,465
Total
Securities
Lending
Collateral
(Cost
$3,465)
3,465
Total
Investments
in
Securities
100.3%
of
Net
Assets
(Cost
$705,392)
$
1,519,557
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
20
‡
Shares
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Non-income
producing
(2)
See
Note
3.
All
or
a
portion
of
this
security
is
on
loan
at
August
31,
2026.
(3)
See
Note
2.
Level
3
in
fair
value
hierarchy.
(4)
Security
cannot
be
offered
for
public
resale
without
first
being
registered
under
the
Securities
Act
of
1933
and
related
rules
("restricted
security").
Acquisition
date
represents
the
day
on
which
an
enforceable
right
to
acquire
such
security
is
obtained
and
is
presented
along
with
related
cost
in
the
security
description.
The
fund
may
have
registration
rights
for
certain
restricted
securities.
Any
costs
related
to
such
registration
are
generally
borne
by
the
issuer.
The
aggregate
value
of
restricted
securities
(excluding
144A
holdings)
at
period
end
amounts
to
$10,857
and
represents
0.7%
of
net
assets.
(5)
Seven-day
yield
(6)
Affiliated
Companies
ADR
American
Depositary
Receipts
REIT
A
domestic
Real
Estate
Investment
Trust
whose
distributions
pass-through
with
original
tax
character
to
the
shareholder
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
21
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
August
31,
2026.
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
Government
Reserve
Fund,
3.72%
$
—
$
—
$
25
T.
Rowe
Price
Treasury
Reserve
Fund,
3.72%
—
—
—
++
Totals
$
—
#
$
—
$
25
+
Supplementary
Investment
Schedule
Affiliate
Value
2/28/26
Purchase
Cost
Sales
Cost
Value
8/31/26
T.
Rowe
Price
Government
Reserve
Fund,
3.72%
$
1,822
¤
¤
$
1,255
T.
Rowe
Price
Treasury
Reserve
Fund,
3.72%
1,714
¤
¤
3,465
Total
$
4,720
^
#
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
3.
+
Investment
income
comprised
$25
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
$4,720.
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
August
31,
2026
Unaudited
Statement
of
Assets
and
Liabilities
22
($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
$705,392)
$
1,519,557
Receivable
for
shares
sold
461
Dividends
receivable
420
Other
assets
33
Total
assets
1,520,471
Liabilities
Obligation
to
return
securities
lending
collateral
3,465
Investment
management
fees
payable
817
Payable
for
shares
redeemed
281
Payable
for
investment
securities
purchased
231
Due
to
affiliates
45
Payable
to
directors
1
Other
liabilities
312
Total
liabilities
5,152
Commitments
and
Contingent
Liabilities
(note
6)
NET
ASSETS
$
1,515,319
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
855,316
Paid-in
capital
applicable
to
16,176,384
shares
of
$0.0001
par
value
capital
stock
outstanding;
1,000,000,000
shares
of
the
Corporation
authorized
660,003
NET
ASSETS
$
1,515,319
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$457,495;
Shares
outstanding:
4,904,930)
$
93.27
I
Class
(Net
assets:
$1,057,824;
Shares
outstanding:
11,271,454)
$
93.85
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Statement
of
Operations
23
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/26
Investment
Income
(Loss)
Income
Dividend
(net
of
foreign
taxes
of
$10)
$
3,613
Securities
lending
13
Total
income
3,626
Expenses
Investment
management
4,630
Shareholder
servicing
Investor
Class
$
330
I
Class
69
399
Prospectus
and
shareholder
reports
Investor
Class
5
I
Class
6
11
Proxy
and
annual
meeting
240
Custody
and
accounting
117
Registration
34
Legal
and
audit
13
Directors
2
Miscellaneous
9
Waived
/
paid
by
Price
Associates
(
108
)
Total
expenses
5,347
Net
investment
loss
(
1,721
)
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
gain
on
securities
77,858
Change
in
net
unrealized
gain
/
loss
on
securities
81,922
Net
realized
and
unrealized
gain
/
loss
159,780
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
158,059
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
Statement
of
Changes
in
Net
Assets
24
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/26
Year
Ended
2/28/26
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
loss
$
(
1,721
)
$
(
3,046
)
Net
realized
gain
77,858
76,495
Change
in
net
unrealized
gain
/
loss
81,922
82,578
Increase
in
net
assets
from
operations
158,059
156,027
Capital
share
transactions
*
Shares
sold
Investor
Class
146,386
215,089
I
Class
26,515
62,819
Shares
redeemed
Investor
Class
(
159,586
)
(
234,289
)
I
Class
(
22,246
)
(
64,661
)
Decrease
in
net
assets
from
capital
share
transactions
(
8,931
)
(
21,042
)
Net
Assets
Increase
during
period
149,128
134,985
Beginning
of
period
1,366,191
1,231,206
End
of
period
$
1,515,319
$
1,366,191
*Share
information
(000s)
Shares
sold
Investor
Class
1,627
2,559
I
Class
294
777
Shares
redeemed
Investor
Class
(
1,782
)
(
2,801
)
I
Class
(
250
)
(
827
)
Decrease
in
shares
outstanding
(
111
)
(
292
)
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
25
T.
Rowe
Price
Tax-Efficient
Funds,
Inc. (the
corporation)
is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Tax-Efficient
Equity
Fund
(the
fund)
is an open-end
management
investment
company
established
by
the
corporation.
During
the
reporting
period,
the
fund’s
classification
changed
from
diversified
to
nondiversified. The
fund
seeks to
maximize
after-
tax
growth
of
capital
through
investments
primarily
in
common
stocks.
The
fund
has two classes
of
shares:
the
Tax-Efficient
Equity
Fund
(Investor
Class)
and
the
Tax-Efficient
Equity
Fund–I
Class
(I
Class).
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
both
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
class.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. 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
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
26
market
value
of
the
asset
received. Proceeds
from
litigation
payments,
if
any,
are
included
in
either
net
realized
gain
(loss)
or
change
in
net
unrealized
gain/loss
from
securities. Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any,
are
declared
and
paid
by
each
class annually. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes,
investment
income,
and
realized
and
unrealized
gains
and
losses
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class.
In-Kind
Redemptions
In
accordance
with
guidelines
described
in
the
fund’s
prospectus,
and
when
considered
to
be
in
the
best
interest
of
all
shareholders,
the
fund
may
distribute
portfolio
securities
rather
than
cash
as
payment
for
a
redemption
of
fund
shares
(in-kind
redemption).
Gains
and
losses
realized
on
in-kind
redemptions
are
not
recognized
for
tax
purposes
and
are
reclassified
from
undistributed
realized
gain
(loss)
to
paid-in
capital.
During
the
six
months ended
August
31,
2026,
the
fund
realized
$97,175,000 of
net
gain
on
$127,389,000
of
in-kind
redemptions.
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.
Eastern
time,
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 September
2026,
the
FASB
issued
Accounting
Standards
Update
(ASU)
ASU
2026-03,
Fair
Value
Measurement
(Topic
820)
–
Investment
Companies
with
Equity
Securities
Subject
to
Contractual
Sale
Restrictions,
which
requires
investment
companies
within
the
scope
of
ASC
946
to
consider
contractual
sale
restrictions
on
the
sale
of
an
equity
security
when
measuring
the
fair
value
of
the
security
and
to
disclose
the
amount
of
the
discount
attributable
to
the
contractual
sale
restriction.
The
amendments
under
the
ASU
are
effective
for
fiscal
years
beginning
after
December
15,
2027;
however,
early
adoption
is
permitted.
Adoption
of
the
guidance
is
not
expected
to
have
a
material
impact
on
the
fund’s
financial
statements.
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
27
Indemnification
In
the
normal
course
of
business, the
fund
may
provide
indemnification
in
connection
with
its
officers
and
directors,
service
providers,
and/or
private
company
investments. The
fund’s
maximum
exposure
under
these
arrangements
is
unknown;
however,
the
risk
of
material
loss
is
currently
considered
to
be
remote.
NOTE
2
-
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
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
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
28
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.
Investments
in
mutual
funds
are
valued
at
the
mutual
fund’s
closing
NAV
per
share
on
the
day
of
valuation.
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
the
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
T.
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PRICE
Tax-Efficient
Equity
Fund
29
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.
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
August
31,
2026
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
NOTE
3
-
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.
Restricted
Securities
The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
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
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Common
Stocks
$
1,503,980
$
—
$
2,116
$
1,506,096
Convertible
Preferred
Stocks
—
—
8,741
8,741
Short-Term
Investments
1,255
—
—
1,255
Securities
Lending
Collateral
3,465
—
—
3,465
Total
$
1,508,700
$
—
$
10,857
$
1,519,557
T.
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PRICE
Tax-Efficient
Equity
Fund
30
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.
Any
non-cash
collateral
received
cannot
be
sold,
re-invested
or
pledged
by
the
fund,
except
in
the
event
of
borrower
default. 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
August
31,
2026,
the
value
of
loaned
securities
was
$10,099,000;
the
aggregate
value
of
collateral
was
$10,387,000
and
consisted
of
cash
collateral
and
related
investments
of
$3,465,000
and
U.S.
government
securities
of
$6,922,000.
Other
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any,
and short-term securities
aggregated $260,009,000 and
$142,718,000,
respectively,
for
the
six
months ended
August
31,
2026.
NOTE
4
-
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.
T.
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PRICE
Tax-Efficient
Equity
Fund
31
The
fund
intends
to
retain
realized
gains
to
the
extent
of
available
capital
loss
carryforwards.
Net
realized
capital
losses
may
be
carried
forward
indefinitely
to
offset
future
realized
capital
gains.
As
of
February
28,
2026,
the
fund
had
$33,944,000
of
available
capital
loss
carryforwards.
At
August
31,
2026,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$705,658,000.
Net
unrealized
gain
aggregated
$813,899,000
at
period-end,
of
which
$822,002,000
related
to
appreciated
investments
and
$8,103,000
related
to
depreciated
investments.
NOTE
5
-
FOREIGN TAXES
The
fund
is
subject
to
foreign
income
taxes
imposed
by
certain
countries
in
which
it
invests.
Additionally,
capital
gains
realized
upon
disposition
of
securities
issued
in
or
by
certain
foreign
countries
are
subject
to
capital
gains
tax
imposed
by
those
countries.
All
taxes
are
computed
in
accordance
with
the
applicable
foreign
tax
law,
and,
to
the
extent
permitted,
capital
losses
are
used
to
offset
capital
gains.
Taxes
attributable
to
income
are
accrued
by
the
fund
as
a
reduction
of
income.
Current
and
deferred
tax
expense
attributable
to
capital
gains
is
reflected
as
a
component
of
realized
or
change
in
unrealized
gain/
loss
on
securities
in
the
accompanying
financial
statements.
To
the
extent
that
the
fund
has
country
specific
capital
loss
carryforwards,
such
carryforwards
are
applied
against
net
unrealized
gains
when
determining
the
deferred
tax
liability.
Any
deferred
tax
liability
incurred
by
the
fund
is
included
in
either
Other
liabilities
or
Deferred
tax
liability
on
the
accompanying
Statement
of
Assets
and
Liabilities.
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
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee,
which
is
computed
daily
and
paid
monthly. The
fee
consists
of
an
individual
fund
fee,
equal
to
0.35%
of
the
fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.26%
for
assets
in
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
32
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets. At
August
31,
2026,
the
effective
annual
group
fee
rate
was
0.28%.
The
Investor
Class
is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
by
the
fund’s
Board.
During
the
limitation
period,
Price
Associates
is required
to
waive
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
that
would
otherwise
cause
the class’s ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
The
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class’s net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the class’s net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the class’s
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval by
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
Pursuant
to
these
agreements,
expenses
were waived/paid
by
and/or
repaid
to
Price
Associates
during
the six
months
ended August
31,
2026 as
indicated
in
the
table
below.
Including
these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $122,000 remain
subject
to
repayment
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
33
by
the
fund
at
August
31,
2026. Any
repayment
of
expenses
previously
waived/paid
by
Price
Associates
during
the
period
would
be
included
in
the
net
investment
income
and
expense
ratios
presented
on
the
accompanying
Financial
Highlights.
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
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
For
the
six
months
ended
August
31,
2026,
expenses
incurred
pursuant
to
these
service
agreements
were
$63,000
for
Price
Associates
and
$135,000
for
T.
Rowe
Price
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
T.
Rowe
Price
Investment
Services,
Inc.
(Investment
Services)
serves
as
distributor
to
the
fund.
Pursuant
to
an
underwriting
agreement,
no
compensation
for
any
distribution
services
provided
is
paid
to
Investment
Services
by
the
fund
(except
for
12b-1
fees
under
a
Board-approved
Rule
12b-1
plan).
The fund
may
invest
its
cash
reserves
in
certain
open-end
management
investment
companies
managed
by
Price
Associates
and
considered
affiliates
of
the
fund:
the
T.
Rowe
Price
Government
Reserve
Fund
or
the
T.
Rowe
Price
Treasury
Reserve
Fund,
organized
as
money
market
funds
(together,
the
Price
Reserve
Funds).
The
Price
Reserve
Funds
are
offered
as
short-term
investment
options
to
mutual
funds,
trusts,
and
other
accounts
managed
by
Price
Associates
or
its
affiliates
and
are
not
available
for
direct
purchase
by
members
of
the
public.
Cash
collateral
from
securities
lending,
if
any,
is
invested
in
the
T.
Rowe
Price
Treasury 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
Investor
Class
I
Class
Expense
limitation/I
Class
Limit
0.99%
0.05%
Expense
limitation
date
04/30/27
04/30/27
(Waived)/repaid
during
the
period
($000s)
$—
$(108)
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
34
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
August
31,
2026,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
NOTE
7
-
SEGMENT
REPORTING
Operating segments
are
defined
as
components
of
a
company
that
engage
in
business
activities
and
for
which
discrete
financial
information
is
available
and
regularly
reviewed
by
the
chief
operating
decision
maker
(CODM)
in
deciding
how
to
allocate
resources
and
assess
performance.
The
Management
Committee
of
Price Group
acts
as
the
fund’s
CODM.
The
fund
makes
investments
in
accordance
with
its
investment
objective
as
outlined
in
the
Prospectus
and
is
considered
one
reportable
segment
because
the
CODM
allocates
resources
and
assesses
the
operating
results
of
the
fund
on
the
whole.
The
fund’s
revenue
is
derived
from
investments
in
a
portfolio
of
securities.
The
CODM
allocates
resources
and
assesses
performance
based
on
the
operating
results
of
the
fund,
which
is
consistent
with
the
results
presented
in
the
statement
of
operations,
statement
of
changes
in
net
assets
and
financial
highlights.
The
CODM
compares
the
fund’s
performance
to
its
benchmark
index
and
evaluates
the
positioning
of
the
fund
in
relation
to
its
investment
objective.
The
measure
of
segment
assets
is
net
assets
of
the
fund
which
is
disclosed
in
the
statement
of
assets
and
liabilities.
The accounting
policies
of
the
segment
are
the
same
as
those
described
in
the
summary
of
significant
accounting
policies.
The
financial
statements
include
all
details
of
the
segment
assets,
segment
revenue
and
expenses;
and
reflect
the
financial
results
of
the
segment.
NOTE
8
-
OTHER
MATTERS
Unpredictable environmental,
political,
social
and
economic
events,
including
but
not
limited
to,
environmental
or
natural
disasters,
war
and
conflict,
terrorism,
geopolitical
and
regulatory
developments
(including
trading
and
tariff
arrangements),
and
public
health
epidemics
or
threats,
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
a
fund
invests.
The
extent
and
duration
of
such
events
and
resulting
market
disruptions
cannot
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
35
be
predicted.
These
and
other
similar
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.
The
fund’s
performance
could
be
negatively
impacted
if
the
value
of
a
portfolio
holding
were
harmed
by
these
or
such
events.
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
36
APPROVAL
OF
INVESTMENT
MANAGEMENT
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).
In
that
regard,
at
a
meeting
held
on
March
11-12,
2026
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors
who
were
present
in
person
at
the
Meeting,
approved
the
continuation
of
the
fund’s
Advisory
Contract.
At
the
Meeting,
the
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
selection
of
the
Adviser
and
the
approval
of
the
Advisory
Contract.
The
independent
directors
were
assisted
in
their
evaluation
of
the
Advisory
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,
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
about
various
topics
and
information
provided
to
it
by
the
Adviser.
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
The
Board
considered
the
nature,
quality,
and
extent
of
the
services
provided
to
the
fund
by
the
Adviser.
These
services
include,
but
are
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
and
infrastructure,
as
well
as
compliance
with
new
and
evolving
regulatory
requirements
(e.g.,
derivatives
and
liquidity
risk
management);
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
senior
management
team
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,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
37
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
(as
applicable)
peer
groups
of
funds
with
similar
investment
programs
for
various
periods
through
December
31,
2025.
Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2025,
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
investment
company
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.
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,
including
any
research
received
under
soft-dollar
arrangements
with
broker-dealers.
In
considering
soft-dollar
arrangements,
the
Board
noted
that
the
Adviser
may
use
brokerage
commissions
in
connection
with
certain
T.
Rowe
Price
funds’
securities
transactions
to
pay
for
research
when
permissible,
and
the
Board
considered
that
the
Adviser
may
receive
some
benefit
from
soft-dollar
arrangements
pursuant
to
which
research
is
received
from
broker-dealers
that
execute
the
applicable
fund’s
portfolio
transactions.
The
Board
received
information
on
the
estimated
costs
incurred
and
profits
realized
by
the
Adviser
from
managing
the
T.
Rowe
Price
funds.
The
Board
also
reviewed
estimates
of
the
profits
realized
from
managing
the
fund
in
particular,
and
the
Board
concluded
that
the
Adviser’s
profits
were
reasonable
in
light
of
the
services
provided
to
the
fund.
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
38
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
potentially
realized
by
the
Adviser.
Under
the
Advisory
Contract,
the
fund
pays
a
management
fee
to
the
Adviser
for
investment
management
services
composed
of
two
components
–
a
group
fee
rate
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
mutual
funds
and
ETFs
(including
the
fund)
(“group
fee
rate
assets”)
that
declines
at
certain
asset
levels
and
an
individual
fund
fee
rate
based
on
the
fund’s
average
daily
net
assets
–
and
the
fund
pays
its
own
expenses
of
operations.
The
group
fee
schedule
is
graduated
so
the
group
fee
rate
decreases
as
total
group
fee
rate
assets
increase
and
the
group
fee
rate
increases
as
total
group
fee
rate
assets
decrease.
As
a
result,
shareholders
benefit
from
overall
growth
in
T.
Rowe
Price
fund
assets,
which
reduces
the
management
fee
rate
for
any
fund
that
has
a
group
fee
component
to
its
management
fee,
and
reflects
that
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds
thus
allowing
shareholders
of
those
funds
to
share
potential
economies
of
scale.
The
fund’s
shareholders
also
benefit
from
potential
economies
of
scale
through
a
decline
in
certain
operating
expenses
as
the
fund
grows
in
size.
However,
the
fund
is
also
subject
to
contractual
expense
limitations
that
require
the
Adviser
to
waive
its
management
fees
and/or
bear
any
operating
expenses
that
would
otherwise
cause
the
expenses
of
a
share
class
of
the
fund
to
exceed
a
certain
percentage
based
on
the
class’s
net
assets.
The
expense
limitations
mitigate
the
potential
for
an
increase
in
operating
expenses
above
a
certain
level
that
could
impact
shareholders.
In
addition,
the
Board
noted
that
the
fund
shares
in
potential
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
management
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
potential
economies
of
scale
with
the
fund
and
its
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,
and
total
expenses
of
the
fund’s
Investor
Class
and
I
Class
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group);
and
(ii)
actual
management
fees
and
total
expenses
of
the
fund’s
Investor
Class
and
I
Class
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
39
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
reflects
the
management
fees
actually
received
from
the
fund
by
the
Adviser
after
any
applicable
waivers,
reductions,
or
reimbursements),
operating
expenses,
and
total
expenses
(which
reflect
the
net
total
expense
ratio
of
the
fund
after
any
waivers,
reductions,
or reimbursements)
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
for
the
fund’s
Investor
Class
indicated
that
the
contractual
management
fee
ranked
in
the
second
quintile
(Expense
Group),
the
actual
management
fee
rate
ranked
in
the
first
quintile
(Expense
Group)
and
second
quintile
(Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
second
quintile
(Expense
Group
and
Expense
Universe).
The
information
provided
to
the
Board
for
the
fund’s
I
Class
indicated
that
the
contractual
management
fee
ranked
in
the
second
quintile
(Expense
Group),
the
actual
management
fee
rate
ranked
in
the
first
quintile
(Expense
Group)
and
second
quintile
(Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
first
quintile
(Expense
Group
and
Expense
Universe).
The
Board
was
provided
the
fee
schedules
and
other
account
fee
information
for
certain
comparable
investment
portfolios
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios
that
are
not
registered
investment
companies,
including
collective
investment
trusts
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
The
fee
schedules
and
account
fee
information,
which
are
subject
to
change,
may
be
negotiated
under
certain
circumstances
and
may
differ
across
regions.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
and
services
provided
to
subadvisory
clients
and
other
types
of
clients,
including
information
about
how
the
requirements,
economics
and
risks
of
the
domestic
and
international
businesses
may
differ
from
those
of
the
proprietary
mutual
fund
and
ETF
(“registered
fund”)
business. The
Board
considered
information
showing
that
the
Adviser’s
proprietary
registered
fund
business
is
generally
more
complex
from
a
business
and
regulatory
perspective
than
its
other
domestic
and
international
businesses
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
proprietary
registered
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Tax-Efficient
Equity
Fund
40
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
registered
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
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
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
(including
the
fees
to
be
charged
for
services
thereunder).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
1307
Point
Street
Baltimore,
Maryland
21231
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-638-5660
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.
F136-051
10/26
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Remuneration paid to Directors is included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
If applicable, see Item 7.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. 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 16. 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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
| (a)(1) | The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR. | |
| (2) | Listing standards relating to recovery of erroneously awarded compensation: Not applicable. | |
| (3) | ||
| (b) |
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 Tax-Efficient Funds, Inc. | ||||
| By | /s/ David Oestreicher |
|||
| David Oestreicher | ||||
| Principal Executive Officer | ||||
| Date | October 16, 2026 | |||
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 | October 16, 2026 |
|||
| By | /s/ Alan S. Dupski |
|||
| Alan S. Dupski | ||||
| Principal Financial Officer | ||||
| Date | October 16, 2026 |
|||
来源：SEC EDGAR · 本站存档