UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-07143
T. Rowe Price Equity Series, Inc.
(Exact name of registrant as specified in charter)
100 East Pratt Street, Baltimore, MD 21202
(Address of principal executive offices)
David Oestreicher
100 East Pratt Street, Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2024
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Semi-Annual Shareholder Report
June 30, 2024
Equity Income Portfolio Class (QAAHCX)
This semi-annual shareholder report contains important information about Equity Income Portfolio (the "fund") for the period of January 1, 2024 to June 30, 2024. 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 info@troweprice.com 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 |
|---|
| Equity Income Portfolio Class | $38 | 0.74% |
What are some fund statistics?
| Total Net Assets (000s) | $760,920 |
| Number of Portfolio Holdings | 117 |
| |
| Portfolio Turnover Rate | 11.9% |
What did the fund invest in?
Sector Allocation (as a % of Net Assets)
| Financials | 21.9% |
| Health Care | 16.5 |
| Industrials & Business Services | 12.3 |
| Information Technology | 10.2 |
| Energy | 9.0 |
| Consumer Staples | 8.7 |
| Utilities | 6.1 |
| Communication Services | 4.6 |
| Real Estate | 4.1 |
| Other | 6.6 |
Top Ten Holdings (as a % of Net Assets)
| Elevance Health | 2.7% |
| QUALCOMM | 2.4 |
| News | 2.4 |
| Wells Fargo | 2.4 |
| TotalEnergies | 2.3 |
| Southern | 2.2 |
| American International Group | 2.0 |
| Chubb | 2.0 |
| MetLife | 1.9 |
| General Electric | 1.8 |
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.
Equity Income Portfolio
Equity Income Portfolio Class (QAAHCX)
T. Rowe Price Investment Services, Inc.
100 East Pratt Street
Baltimore, MD 21202
Semi-Annual Shareholder Report
June 30, 2024
Equity Income Portfolio - II Class (QAAHAX)
This semi-annual shareholder report contains important information about Equity Income Portfolio (the "fund") for the period of January 1, 2024 to June 30, 2024. 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 info@troweprice.com 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 |
|---|
| Equity Income Portfolio - II Class | $51 | 0.98% |
What are some fund statistics?
| Total Net Assets (000s) | $760,920 |
| Number of Portfolio Holdings | 117 |
| |
| Portfolio Turnover Rate | 11.9% |
What did the fund invest in?
Sector Allocation (as a % of Net Assets)
| Financials | 21.9% |
| Health Care | 16.5 |
| Industrials & Business Services | 12.3 |
| Information Technology | 10.2 |
| Energy | 9.0 |
| Consumer Staples | 8.7 |
| Utilities | 6.1 |
| Communication Services | 4.6 |
| Real Estate | 4.1 |
| Other | 6.6 |
Top Ten Holdings (as a % of Net Assets)
| Elevance Health | 2.7% |
| QUALCOMM | 2.4 |
| News | 2.4 |
| Wells Fargo | 2.4 |
| TotalEnergies | 2.3 |
| Southern | 2.2 |
| American International Group | 2.0 |
| Chubb | 2.0 |
| MetLife | 1.9 |
| General Electric | 1.8 |
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.
Equity Income Portfolio
Equity Income Portfolio - II Class (QAAHAX)
T. Rowe Price Investment Services, Inc.
100 East Pratt Street
Baltimore, MD 21202
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
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
T.
ROWE
PRICE
Equity
Income
Portfolio
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Equity
Income
Portfolio
Class
.
6
Months
.
Ended
6/30/24
..
Year
..
..
Ended
.
12/31/23
12/31/22
12/31/21
12/31/20
12/31/19
NET
ASSET
VALUE
Beginning
of
period
$
27.76
$
27.01
$
30.07
$
26.21
$
27.13
$
23.36
Investment
activities
Net
investment
income
(1)(2)
0.26
0.56
0.57
0.48
0.54
0.61
Net
realized
and
unrealized
gain/
loss
1.91
1.94
(1.60)
6.12
(0.34)
5.49
Total
from
investment
activities
2.17
2.50
(1.03)
6.60
0.20
6.10
Distributions
Net
investment
income
(0.26)
(0.57)
(0.55)
(0.48)
(0.55)
(0.62)
Net
realized
gain
–
(1.18)
(1.48)
(2.26)
(0.57)
(1.71)
Total
distributions
(0.26)
(1.75)
(2.03)
(2.74)
(1.12)
(2.33)
NET
ASSET
VALUE
End
of
period
$
29.67
$
27.76
$
27.01
$
30.07
$
26.21
$
27.13
Ratios/Supplemental
Data
Total
return
(2)(3)
7.83%
9.54%
(3.34)%
25.55%
1.18%
26.40%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.81%
(4)
0.85%
0.85%
0.85%
0.85%
0.85%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.74%
(4)
0.74%
0.74%
0.74%
0.74%
0.74%
Net
investment
income
1.80%
(4)
2.05%
1.96%
1.60%
2.30%
2.31%
Portfolio
turnover
rate
11.9%
17.5%
18.3%
19.8%
27.7%
19.5%
Net
assets,
end
of
period
(in
millions)
$
440
$
429
$
434
$
491
$
430
$
477
(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
Equity
Income
Portfolio
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Equity
Income
Portfolio
-
II
Class
.
6
Months
.
Ended
6/30/24
..
Year
..
..
Ended
.
12/31/23
12/31/22
12/31/21
12/31/20
12/31/19
NET
ASSET
VALUE
Beginning
of
period
$
27.59
$
26.85
$
29.91
$
26.10
$
27.01
$
23.27
Investment
activities
Net
investment
income
(1)(2)
0.22
0.49
0.50
0.41
0.48
0.55
Net
realized
and
unrealized
gain/
loss
1.90
1.94
(1.60)
6.08
(0.33)
5.45
Total
from
investment
activities
2.12
2.43
(1.10)
6.49
0.15
6.00
Distributions
Net
investment
income
(0.23)
(0.51)
(0.48)
(0.42)
(0.49)
(0.55)
Net
realized
gain
–
(1.18)
(1.48)
(2.26)
(0.57)
(1.71)
Total
distributions
(0.23)
(1.69)
(1.96)
(2.68)
(1.06)
(2.26)
NET
ASSET
VALUE
End
of
period
$
29.48
$
27.59
$
26.85
$
29.91
$
26.10
$
27.01
Ratios/Supplemental
Data
Total
return
(2)(3)
7.68%
9.31%
(3.59)%
25.22%
0.96%
26.04%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
1.06%
(4)
1.10%
1.10%
1.10%
1.10%
1.10%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.98%
(4)
0.99%
0.99%
0.99%
0.99%
0.99%
Net
investment
income
1.56%
(4)
1.81%
1.73%
1.36%
2.05%
2.07%
Portfolio
turnover
rate
11.9%
17.5%
18.3%
19.8%
27.7%
19.5%
Net
assets,
end
of
period
(in
thousands)
$
321,160
$
306,457
$
283,936
$
295,512
$
236,856
$
238,540
(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
Equity
Income
Portfolio
June
30,
2024
(Unaudited)
Shares
$
Value
(Cost
and
value
in
$000s)
‡
COMMON
STOCKS
98.3%
COMMUNICATION
SERVICES
4.6%
Diversified
Telecommunication
Services
0.5%
AT&T
44,612
852
Verizon
Communications
70,802
2,920
3,772
Entertainment
1.1%
Walt
Disney
86,804
8,619
8,619
Media
3.0%
Comcast,
Class
A
114,333
4,477
News,
Class
A
597,630
16,477
News,
Class
B
55,103
1,564
22,518
Total
Communication
Services
34,909
CONSUMER
DISCRETIONARY
2.1%
Broadline
Retail
0.4%
Kohl's
123,593
2,841
2,841
Hotels,
Restaurants
&
Leisure
1.0%
Las
Vegas
Sands
167,169
7,397
7,397
Leisure
Products
0.4%
Mattel (1)
203,920
3,316
3,316
Specialty
Retail
0.3%
TJX
23,243
2,559
2,559
Total
Consumer
Discretionary
16,113
CONSUMER
STAPLES
8.7%
Consumer
Staples
Distribution
&
Retail
1.6%
Dollar
General
21,100
2,790
Walmart
133,346
9,029
11,819
Food
Products
1.9%
Conagra
Brands
243,001
6,906
Mondelez
International,
Class
A
11,969
783
Tyson
Foods,
Class
A
114,626
6,550
14,239
Household
Products
2.4%
Colgate-Palmolive
60,214
5,843
Kimberly-Clark
90,594
12,520
18,363
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Personal
Care
Products
1.2%
Kenvue
494,762
8,995
8,995
Tobacco
1.6%
Philip
Morris
International
120,871
12,248
12,248
Total
Consumer
Staples
65,664
ENERGY
9.0%
Energy
Equipment
&
Services
0.5%
Baker
Hughes
102,900
3,619
3,619
Oil,
Gas
&
Consumable
Fuels
8.5%
Chevron
9,470
1,481
ConocoPhillips
24,100
2,757
Enbridge
104,700
3,726
EOG
Resources
37,032
4,661
EQT
140,495
5,195
Exxon
Mobil
108,820
12,527
Hess
14,872
2,194
Marathon
Oil
68,600
1,967
Suncor
Energy
147,000
5,601
TC
Energy
79,320
3,006
TotalEnergies
(EUR)
223,283
14,950
TotalEnergies
,
ADR
39,812
2,655
Williams
97,300
4,135
64,855
Total
Energy
68,474
FINANCIALS
21.9%
Banks
8.4%
Bank
of
America
94,975
3,777
Citigroup
147,462
9,358
Fifth
Third
Bancorp
193,806
7,072
Huntington
Bancshares
626,611
8,259
JPMorgan
Chase
54,289
10,980
U.S.
Bancorp
170,563
6,771
Wells
Fargo
302,436
17,962
64,179
Capital
Markets
2.6%
Bank
of
New
York
Mellon
23,400
1,401
Charles
Schwab
172,989
12,748
Goldman
Sachs
Group
5,786
2,617
Morgan
Stanley
28,823
2,801
19,567
Financial
Services
2.8%
Apollo
Global
Management
18,721
2,211
Equitable
Holdings
269,831
11,025
Fiserv (1)
54,024
8,052
21,288
Insurance
8.1%
American
International
Group
203,509
15,109
T.
ROWE
PRICE
Equity
Income
Portfolio
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Chubb
58,877
15,018
Hartford
Financial
Services
Group
96,855
9,738
Loews
102,027
7,625
MetLife
201,485
14,142
61,632
Total
Financials
166,666
HEALTH
CARE
16.5%
Biotechnology
0.8%
AbbVie
21,593
3,703
Biogen (1)
10,606
2,459
6,162
Health
Care
Equipment
&
Supplies
4.4%
Becton
Dickinson
&
Company
55,650
13,006
GE
HealthCare
Technologies
28,436
2,216
Medtronic
86,495
6,808
Zimmer
Biomet
Holdings
106,100
11,515
33,545
Health
Care
Providers
&
Services
6.7%
Cardinal
Health
11,000
1,082
Centene
(1)
21,580
1,431
Cigna
Group
25,471
8,420
CVS
Health
116,409
6,875
Elevance
Health
37,226
20,171
Humana
4,100
1,532
UnitedHealth
Group
22,600
11,509
51,020
Pharmaceuticals
4.6%
AstraZeneca,
ADR
86,100
6,715
Bristol-Myers
Squibb
83,700
3,476
Johnson
&
Johnson
57,238
8,366
Merck
15,257
1,889
Pfizer
141,725
3,965
Sanofi
(EUR)
44,804
4,321
Sanofi,
ADR
17,500
849
Viatris
476,100
5,061
34,642
Total
Health
Care
125,369
INDUSTRIALS
&
BUSINESS
SERVICES
12.3%
Aerospace
&
Defense
4.7%
Boeing (1)
48,976
8,914
General
Electric
85,909
13,657
L3Harris
Technologies
60,422
13,570
36,141
Air
Freight
&
Logistics
1.0%
United
Parcel
Service,
Class
B
56,846
7,779
7,779
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Commercial
Services
&
Supplies
0.3%
Stericycle (1)
40,957
2,381
2,381
Electrical
Equipment
0.6%
GE
Vernova
(1)
27,402
4,700
4,700
Ground
Transportation
1.1%
CSX
42,300
1,415
Norfolk
Southern
18,800
4,036
Union
Pacific
14,134
3,198
8,649
Industrial
Conglomerates
2.0%
3M
19,900
2,034
Honeywell
International
18,000
3,844
Siemens
(EUR)
51,489
9,583
15,461
Machinery
1.8%
Cummins
15,400
4,265
Stanley
Black
&
Decker
117,128
9,357
13,622
Passenger
Airlines
0.8%
Southwest
Airlines
222,437
6,364
6,364
Total
Industrials
&
Business
Services
95,097
INFORMATION
TECHNOLOGY
10.2%
Communications
Equipment
0.3%
Cisco
Systems
45,028
2,139
2,139
Electronic
Equipment,
Instruments
&
Components
0.9%
TE
Connectivity
47,620
7,164
7,164
IT
Services
0.7%
Accenture,
Class
A
17,505
5,311
5,311
Semiconductors
&
Semiconductor
Equipment
5.4%
Advanced
Micro
Devices (1)
3,900
633
Applied
Materials
47,829
11,287
Intel
114,600
3,549
QUALCOMM
90,823
18,090
Texas
Instruments
37,098
7,217
40,776
Software
1.8%
Microsoft
28,497
12,737
Salesforce
3,400
874
13,611
T.
ROWE
PRICE
Equity
Income
Portfolio
Shares
$
Value
(Cost
and
value
in
$000s)
‡
Technology
Hardware,
Storage
&
Peripherals
1.1%
Samsung
Electronics
(KRW)
136,420
8,029
8,029
Total
Information
Technology
77,030
MATERIALS
3.0%
Chemicals
1.6%
CF
Industries
Holdings
159,957
11,856
11,856
Containers
&
Packaging
1.4%
International
Paper
243,839
10,522
10,522
Total
Materials
22,378
REAL
ESTATE
4.1%
Industrial
Real
Estate
Investment
Trusts
0.5%
Rexford
Industrial
Realty,
REIT
85,598
3,817
3,817
Office
Real
Estate
Investment
Trusts
0.0%
Vornado
Realty
Trust,
REIT
11,600
305
305
Residential
Real
Estate
Investment
Trusts
1.5%
Equity
Residential,
REIT
161,496
11,198
11,198
Specialized
Real
Estate
Investment
Trusts
2.1%
Rayonier,
REIT
190,952
5,555
Weyerhaeuser,
REIT
365,065
10,364
15,919
Total
Real
Estate
31,239
UTILITIES
5.9%
Electric
Utilities
3.1%
NextEra
Energy
79,702
5,643
PG&E
63,100
1,102
Southern
216,679
16,808
23,553
Multi-Utilities
2.8%
Ameren
89,509
6,365
Dominion
Energy
169,084
8,285
NiSource
43,851
1,264
Sempra
73,245
5,571
21,485
Total
Utilities
45,038
Total
Common
Stocks
(Cost
$510,391)
747,977
Shares
$
Value
(Cost
and
value
in
$000s)
‡
CONVERTIBLE
PREFERRED
STOCKS
0.2%
UTILITIES
0.2%
Electric
Utilities
0.2%
NextEra
Energy,
6.926%,
9/1/25
29,299
1,224
Total
Utilities
1,224
Total
Convertible
Preferred
Stocks
(Cost
$1,428)
1,224
PREFERRED
STOCKS
0.9%
CONSUMER
DISCRETIONARY
0.9%
Automobiles
0.9%
Dr.
Ing
.
h.c
.
F.
Porsche
(EUR)
48,015
3,572
Volkswagen
(EUR)
31,102
3,512
Total
Consumer
Discretionary
7,084
Total
Preferred
Stocks
(Cost
$8,610)
7,084
SHORT-TERM
INVESTMENTS
1.3%
Money
Market
Funds
1.3%
T.
Rowe
Price
Government
Reserve
Fund,
5.38% (2)(3)
9,688,285
9,688
Total
Short-Term
Investments
(Cost
$9,688)
9,688
Total
Investments
in
Securities
100.7%
of
Net
Assets
(Cost
$530,117)
$
765,973
T.
ROWE
PRICE
Equity
Income
Portfolio
‡
Shares
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Non-income
producing
(2)
Seven-day
yield
(3)
Affiliated
Companies
ADR
American
Depositary
Receipts
EUR
Euro
KRW
South
Korean
Won
REIT
A
domestic
Real
Estate
Investment
Trust
whose
distributions
pass-through
with
original
tax
character
to
the
shareholder
T.
ROWE
PRICE
Equity
Income
Portfolio
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
AFFILIATED
COMPANIES
($000s)
The
fund
may
invest
in
certain
securities
that
are
considered
affiliated
companies.
As
defined
by
the
1940
Act,
an
affiliated
company
is
one
in
which
the
fund
owns
5%
or
more
of
the
outstanding
voting
securities,
or
a
company
that
is
under
common
ownership
or
control.
The
following
securities
were
considered
affiliated
companies
for
all
or
some
portion
of
the
six
months
ended
June
30,
2024.
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,
5.38%
$
—#
$
—
$
162+
Supplementary
Investment
Schedule
Affiliate
Value
12/31/23
Purchase
Cost
Sales
Cost
Value
06/30/24
T.
Rowe
Price
Government
Reserve
Fund,
5.38%
$
6,010
¤
¤
$
9,688^
#
Capital
gain
distributions
from
underlying
Price
funds
represented
$0
of
the
net
realized
gain
(loss).
+
Investment
income
comprised
$162
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
$9,688.
T.
ROWE
PRICE
Equity
Income
Portfolio
June
30,
2024
(Unaudited)
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$530,117)
$
765,973
Receivable
for
investment
securities
sold
9,892
Dividends
receivable
1,116
Receivable
for
shares
sold
311
Cash
1
Other
assets
346
Total
assets
777,639
Liabilities
Payable
for
investment
securities
purchased
15,582
Payable
for
shares
redeemed
575
Investment
management
fees
payable
341
Due
to
affiliates
12
Payable
to
directors
1
Other
liabilities
208
Total
liabilities
16,719
NET
ASSETS
$
760,920
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
266,626
Paid-in
capital
applicable
to
25,718,119
shares
of
$0.0001
par
value
capital
stock
outstanding;
1,000,000,000
shares
of
the
Corporation
authorized
494,294
NET
ASSETS
$
760,920
NET
ASSET
VALUE
PER
SHARE
Equity
Income
Portfolio
Class
(Net
assets:
$439,760;
Shares
outstanding:
14,823,147)
$
29.67
Equity
Income
Portfolio
-
II
Class
(Net
assets:
$321,160;
Shares
outstanding:
10,894,972)
$
29.48
T.
ROWE
PRICE
Equity
Income
Portfolio
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
6/30/24
Investment
Income
(Loss)
Dividend
income
(net
of
foreign
taxes
of
$285)
$
9,503
....
...
...
Expenses
Investment
management
and
administrative
expenses
(1)
2,095
Investment
management
695
Shareholder
servicing
Equity
Income
Portfolio
Class
$
105
Equity
Income
Portfolio
-
II
Class
77
182
Rule
12b-1
fees
Equity
Income
Portfolio
-
II
Class
386
Prospectus
and
shareholder
reports
Equity
Income
Portfolio
Class
4
Equity
Income
Portfolio
-
II
Class
1
5
Custody
and
accounting
43
Legal
and
audit
10
Miscellaneous
3
Waived
/
paid
by
Price
Associates
(271)
Total
expenses
3,148
Net
investment
income
6,355
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
gain
(loss)
Securities
30,732
Foreign
currency
transactions
23
Net
realized
gain
30,755
Change
in
net
unrealized
gain
/
loss
Securities
18,656
Other
assets
and
liabilities
denominated
in
foreign
currencies
(6)
Change
in
net
unrealized
gain
/
loss
18,650
Net
realized
and
unrealized
gain
/
loss
49,405
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
55,760
(1)
Prior
to
May
1,
2024,
the
fund
operated
under
an
all-inclusive
annual
fee
which
is
represented
as
"Investment
management
and
administrative
expense"
on
the
Statement
of
Operations.
See
Note
6.
T.
ROWE
PRICE
Equity
Income
Portfolio
(Unaudited)
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
6/30/24
Year
Ended
12/31/23
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
6,355
$
13,738
Net
realized
gain
30,755
28,962
Change
in
net
unrealized
gain
/
loss
18,650
21,509
Increase
in
net
assets
from
operations
55,760
64,209
Distributions
to
shareholders
Net
earnings
Equity
Income
Portfolio
Class
(3,891)
(26,229)
Equity
Income
Portfolio
-
II
Class
(2,490)
(17,962)
Decrease
in
net
assets
from
distributions
(6,381)
(44,191)
Capital
share
transactions
*
Shares
sold
Equity
Income
Portfolio
Class
12,323
21,504
Equity
Income
Portfolio
-
II
Class
11,836
32,017
Distributions
reinvested
Equity
Income
Portfolio
Class
3,891
26,229
Equity
Income
Portfolio
-
II
Class
2,491
17,962
Shares
redeemed
Equity
Income
Portfolio
Class
(34,383)
(64,472)
Equity
Income
Portfolio
-
II
Class
(20,305)
(35,615)
Decrease
in
net
assets
from
capital
share
transactions
(24,147)
(2,375)
Net
Assets
Increase
during
period
25,232
17,643
Beginning
of
period
735,688
718,045
End
of
period
$
760,920
$
735,688
*Share
information
(000s)
Shares
sold
Equity
Income
Portfolio
Class
423
789
Equity
Income
Portfolio
-
II
Class
408
1,188
Distributions
reinvested
Equity
Income
Portfolio
Class
131
969
Equity
Income
Portfolio
-
II
Class
85
667
Shares
redeemed
Equity
Income
Portfolio
Class
(1,192)
(2,371)
Equity
Income
Portfolio
-
II
Class
(708)
(1,320)
Decrease
in
shares
outstanding
(853)
(78)
T.
ROWE
PRICE
Equity
Income
Portfolio
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
Equity
Series,
Inc. (the
corporation) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Equity
Income
Portfolio
(the
fund)
is a
diversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks
a
high
level
of
dividend
income
and
long-term
capital
growth
primarily
through
investments
in
stocks.
Shares
of
the
fund
currently
are
offered
only
to
insurance
company
separate
accounts
established
for
the
purpose
of
funding
variable
annuity
contracts
and
variable
life
insurance
policies.
The
fund
has
two
classes
of
shares:
the Equity
Income
Portfolio
(Equity
Income
Portfolio
Class)
and
the Equity
Income
Portfolio–II
(Equity
Income
Portfolio–
II
Class). Equity
Income
Portfolio–II
Class
shares
are
sold
through
financial
intermediaries,
which
it
compensates
for
distribution,
shareholder
servicing,
and/or
certain
administrative
services
under
a
Board-approved
Rule
12b-1
plan.
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
market
value
of
the
asset
received. Proceeds
from
litigation
payments,
if
any,
are
included
in
either
net
realized
gain
(loss)
or
change
in
net
unrealized
gain/loss
from
securities. Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any,
are
declared
and
paid
by
each
class quarterly. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Currency
Translation
Assets,
including
investments,
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollar
values
each
day
at
the
prevailing
exchange
rate,
using
the
mean
of
the
bid
and
asked
prices
of
such
currencies
against
U.S.
dollars
as
provided
by
an
outside
pricing
service.
Purchases
and
sales
of
securities,
income,
and
expenses
are
translated
into
U.S.
dollars
at
the
prevailing
exchange
rate
on
the
respective
date
of
such
transaction.
The
effect
of
changes
in
foreign
currency
exchange
rates
on
realized
and
unrealized
security
gains
and
losses
is
not
bifurcated
from
the
portion
attributable
to
changes
in
market
prices.
Class
Accounting
Investment
income,
investment
management
and
administrative
expense,
and
realized
and
unrealized
gains
and
losses
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class. Equity
Income
Portfolio–II
Class
pays
Rule
12b-1
fees,
in
an
amount
not
exceeding
0.25%
of
the
class’s
average
daily
net
assets.
Capital
Transactions
Each
investor’s
interest
in
the
net
assets
of the
fund
is
represented
by
fund
shares. The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
T.
ROWE
PRICE
Equity
Income
Portfolio
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
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Equity
securities,
including
exchange-traded
funds, listed
or
regularly
traded
on
a
securities
exchange
or
in
the
over-the-counter
(OTC)
market
are
valued
at
the
last
quoted
sale
price
or,
for
certain
markets,
the
official
closing
price
at
the
time
the
valuations
are
made.
OTC
Bulletin
Board
securities
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices.
A
security
that
is
listed
or
traded
on
more
than
one
exchange
is
valued
at
the
quotation
on
the
exchange
determined
to
be
the
primary
market
for
such
security.
Listed
securities
not
traded
on
a
particular
day
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
for
domestic
securities
and
the
last
quoted
sale
or
closing
price
for
international
securities.
The
last
quoted
prices
of
non-U.S.
equity
securities
may
be
adjusted
to
reflect
the
fair
value
of
such
securities
at
the
close
of
the
NYSE,
if
the Valuation
Designee
determines
that
developments
between
the
close
of
a
foreign
market
and
the
close
of
the
NYSE
will
affect
the
value
of
some
or
all
of
the
fund’s portfolio
securities.
Each
business
day,
the
Valuation
Designee uses
information
from
outside
pricing
services
to
evaluate
the
quoted
prices
of
portfolio
securities
and,
if
appropriate,
decide whether
it
is
necessary
to
adjust
quoted
prices
to
reflect
fair
value
by
reviewing
a
variety
of
factors,
including
developments
in
foreign
markets,
the
performance
of
U.S.
securities
markets,
and
the
performance
of
instruments
trading
in
U.S.
markets
that
represent
foreign
securities
and
baskets
of
foreign
securities. The Valuation
Designee
uses
outside
pricing
services
to
provide
it
with
quoted
prices
and
information
to
evaluate
or
adjust
those
prices.
T.
ROWE
PRICE
Equity
Income
Portfolio
The Valuation
Designee
cannot
predict
how
often
it
will
use
quoted
prices
and
how
often
it
will
determine
it
necessary
to
adjust
those
prices
to
reflect
fair
value.
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
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
June
30,
2024
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
NOTE
3
-
OTHER
INVESTMENT
TRANSACTIONS
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any,
and short-term securities
aggregated $88,837,000 and
$109,296,000,
respectively,
for
the
six
months ended
June
30,
2024.
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.
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Common
Stocks
$
711,094
$
36,883
$
—
$
747,977
Convertible
Preferred
Stocks
—
1,224
—
1,224
Preferred
Stocks
—
7,084
—
7,084
Short-Term
Investments
9,688
—
—
9,688
Total
$
720,782
$
45,191
$
—
$
765,973
T.
ROWE
PRICE
Equity
Income
Portfolio
At
June
30,
2024,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$531,954,000.
Net
unrealized
gain
aggregated
$234,015,000
at
period-end,
of
which
$248,245,000
related
to
appreciated
investments
and
$14,230,000
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
0.26%
of
the
fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.260%
for
assets
in
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets. At
June
30,
2024,
the
effective
annual
group
fee
rate
was
0.29%.
Prior
to
May
1,
2024,
the
fund
paid
an
all-
inclusive
annual
fee
equal
to
0.85%
of
the
fund’s
average
daily
net
assets,
which
was
computed
daily
and
paid
monthly.
The
all-inclusive
fee
covered
investment
management
services
and
ordinary,
recurring
operating
expenses
but
did
not
cover
interest
expense;
expenses
related
to
borrowing,
taxes,
and
brokerage;
or
non-recurring,
extraordinary
expenses.
Prior
to
May
1,
2024,
Price
Associates
had
also
contractually
agreed,
through
April
30,
2024,
to
waive
a
portion
of
its
management
fee
in
order
to
limit
the
fund’s
management
fee
to
0.74%
of
the
fund’s
average
daily
net
assets.
Fees
waived
and
expenses
paid
under
this
agreement
are
not
subject
to
reimbursement
to
Price
Associates
by
the
fund. The
total
management
fees
waived
through
April
30,
2024
were $271,000
and
allocated
ratably
in
the
amounts
of
$157,000 and
$114,000 for
the Equity
Income
Portfolio
Class
and Equity
Income
Portfolio-II
Class,
respectively.
Effective
May
1,
2024, the
fund
is
subject
to
a
permanent
contractual
expense
limitation,
pursuant
to
which
Price
Associates
is
required
to
waive or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
acquired
fund
fees
and
expenses;
and
12b-1
fees,
if
any)
that
would
otherwise
cause
the class’s
ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
0.74%.
The
agreement
may
only
be
terminated
with
approval
by
the
fund’s
shareholders.
Each
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. No
management
fees
were
waived
or
any
expenses
paid
under
this
arrangement
during
the
period
May
1,
2024
through
June
30,
2024.
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.
Prior
to
May
1,
2024,
pursuant
to
the
all-inclusive
fee
T.
ROWE
PRICE
Equity
Income
Portfolio
arrangement
under
the
investment
management
and
administrative
agreement,
expenses
incurred
by
the
fund
pursuant
to
these
service
agreements
were
paid
by
Price
Associates.
For
the
period
May
1,
2024
through
June
30,
2024,
expenses
incurred
pursuant
to
these
service
agreements
were
$23,000
for
Price
Associates
and
$2,000
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
Government
Reserve Fund. The
Price
Reserve
Funds
pay
no
investment
management
fees.
The fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
During
the
six
months
ended
June
30,
2024,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
NOTE
7
-
OTHER
MATTERS
Unpredictable environmental,
political,
social
and
economic
events,
including
but
not
limited
to,
environmental
or
natural
disasters,
war
and
conflict
(including
Russia’s
military
invasion
of
Ukraine
and
the
conflict
in
Israel,
Gaza
and
surrounding
areas),
terrorism,
geopolitical
developments
(including
trading
and
tariff
arrangements,
sanctions
and
cybersecurity
attacks),
and
public
health
epidemics
(including
the
global
outbreak
of
COVID-19)
and
similar
public
health
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
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.
Management
actively
monitors
the
risks
and
financial
impacts
arising
from
such
events.
T.
ROWE
PRICE
Equity
Income
Portfolio
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,
2024
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors
present
in
person
at
the
Meeting,
approved
the
continuation
of
the
fund’s
Advisory
Contract,
including
an
amendment
that
will
go
into
effect
on
May
1,
2024.
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.
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
included,
but
were
not
limited
to,
directing
the
fund’s
investments
in
accordance
with
its
investment
program
and
the
overall
management
of
the
fund’s
portfolio,
as
well
as
a
variety
of
related
activities
such
as
financial,
investment
operations,
and
administrative
services;
compliance;
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
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.
Investment
Performance
of
the
Fund
The
Board
took
into
account
discussions
with
the
Adviser
and
detailed
reports
that
it
regularly
receives
throughout
the
year
on
relative
and
absolute
performance
for
the
T.
Rowe
Price
funds.
In
connection
with
the
Meeting,
the
Board
reviewed
information
provided
by
the
Adviser
that
compared
the
fund’s
total
returns,
as
well
as
a
wide
variety
of
other
previously
agreed-upon
performance
measures
and
market
data,
against
relevant
benchmark
indexes
and
peer
groups
of
funds
with
similar
investment
programs
for
various
periods
through
December
31,
2023.
Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2023,
which
ranked
the
returns
of
the
fund
for
various
periods
against
a
universe
of
funds
with
similar
investment
programs
selected
by
Broadridge,
an
independent
provider
of
mutual
fund
data.
In
the
course
of
its
deliberations,
the
Board
considered
performance
information
provided
throughout
the
year
and
in
connection
with
the
Advisory
Contract
review
at
the
Meeting,
as
well
as
information
provided
during
investment
review
meetings
conducted
with
portfolio
managers
and
senior
investment
personnel
during
the
course
of
the
year
regarding
the
fund’s
performance.
The
Board
also
considered
relevant
factors,
such
as
overall
market
conditions
and
trends
that
could
adversely
impact
the
fund’s
performance,
the
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.
In
considering
soft-dollar
arrangements
pursuant
to
which
research
may
be
received
from
broker-dealers
that
execute
the
fund’s
portfolio
transactions,
the
Board
noted
that
during
2023
the
Adviser
paid
the
costs
of
research
services
for
all
client
accounts
that
it
advises,
including
the
T.
Rowe
Price
funds.
However,
effective
January
1,
2024,
the
Adviser
will
begin
using
brokerage
commissions
in
connection
with
certain
T.
Rowe
Price
funds’
securities
transactions
to
pay
for
research
when
permissible.
T.
ROWE
PRICE
Equity
Income
Portfolio
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.
The
Board
also
considered
whether
the
fund
benefits
under
the
fee
levels
set
forth
in
the
Advisory
Contract
or
otherwise
from
any
economies
of
scale
realized
by
the
Adviser.
At
the
time
of
the
Meeting,
under
the
Advisory
Contract,
the
fund
paid
the
Adviser
an
all-inclusive
management
fee
based
on
the
fund’s
average
daily
net
assets.
The
all-inclusive
management
fee
included
investment
management
services
and
provided
for
the
Adviser
to
pay
all
of
the
fund’s
ordinary,
recurring
operating
expenses
except
for
interest,
taxes,
portfolio
transaction
fees,
and
any
nonrecurring
extraordinary
expenses
that
may
arise.
The
Adviser
has
generally
implemented
an
all-inclusive
management
fee
structure
in
situations
where
a
fixed
total
expense
ratio
is
useful
for
purposes
of
providing
certainty
of
fees
and
expenses
for
the
fund’s
investors
and
has
historically
sought
to
set
the
initial
all-inclusive
management
fee
rate
at
levels
below
the
expense
ratios
of
comparable
funds
to
take
into
account
potential
future
economies
of
scale.
In
addition,
the
assets
of
the
fund
have
been
included
in
the
calculation
of
the
group
fee
rate,
which
serves
as
a
component
of
the
management
fee
for
many
T.
Rowe
Price
funds
and
declines
at
certain
asset
levels
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
funds.
Although
the
fund
did
not
have
a
group
fee
component
to
its
management
fee,
its
assets
have
been
included
in
the
calculation
because
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds.
The
Board
noted
that,
effective
May
1,
2024,
under
an
amendment
to
the
Advisory
Contract,
the
fund
will
pay
a
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
funds
(including
the
fund)
that
declines
at
certain
asset
levels
and
an
individual
fund
fee
rate
based
on
the
fund’s
average
daily
net
assets—and
the
fund
will
pay
its
own
expenses
of
operations
(subject
to
an
expense
limitation).
The
group
fee
rate
decreases
as
total
T.
Rowe
Price
fund
assets
grow,
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
will
be
subject
to
a
permanent
contractual
expense
limitation
that
requires
the
Adviser
to
waive
its
fees
and/or
bear
any
expenses
that
would
otherwise
cause
the
fund’s
total
expenses
to
exceed
a
certain
percentage
based
on
the
fund’s
net
assets.
The
expense
limitation
mitigates
the
potential
for
an
increase
in
operating
expenses
above
a
certain
level
that
could
impact
shareholders
and
limits
the
fund’s
expenses
to
the
net
total
expense
ratio
at
the
time
of
the
management
fee
restructure.
In
addition,
the
Board
noted
that
the
fund
potentially
shares
in
indirect
economies
of
scale
through
the
Adviser’s
ongoing
investments
in
its
business
in
support
of
the
T.
Rowe
Price
funds,
including
investments
in
trading
systems,
technology,
and
regulatory
support
enhancements,
and
the
ability
to
possibly
negotiate
lower
fee
arrangements
with
third-party
service
providers.
The
Board
concluded
that
the
advisory
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
any
economies
of
scale
with
the
fund’s
investors.
Fees
and
Expenses
The
Board
was
provided
with
information
regarding
industry
trends
in
management
fees
and
expenses.
Among
other
things,
the
Board
reviewed
data
for
peer
groups
that
were
compiled
by
Broadridge,
which
compared:
(i)
contractual
management
fees,
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
fund
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group)
and
(ii)
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
fund
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
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
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Equity
Income
Portfolio
compiled
by
Broadridge
reflects
the
all-inclusive
management
fee
structure
that
was
in
place
at
the
time
of
the
Meeting
and
does
not
reflect
the
fee
structure
that
will
be
in
place
with
the
May
1,
2024
amendment
to
the
Advisory
Contract.
The
information
provided
to
the
Board
indicated
that
the
fund’s
contractual
management
fee
ranked
in
the
fifth
quintile
(Expense
Group),
the
fund’s
actual
management
fee
rate
ranked
in
the
fifth
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
fifth
quintile
(Expense
Group
and
Expense
Universe).
The
Adviser
provided
the
Board
with
additional
information
with
respect
to
the
fund’s
relative
management
fees
and
total
expenses
ranking
in
the
fifth
quintile.
The
Board
reviewed
and
considered
the
information
provided
relating
to
the
fund,
including
other
funds
in
the
peer
group,
and
other
factors
that
the
Board
determined
to
be
relevant.
The
Board
also
reviewed
the
fee
schedules
for
other
investment
portfolios
with
similar
mandates
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
and
individual
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios,
including
collective
investment
trusts
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
and
services
provided
to
subadvisory
and
other
institutional
account
clients,
including
information
about
how
the
requirements
and
economics
of
the
institutional
business
are
fundamentally
different
from
those
of
the
proprietary
mutual
fund
business.
The
Board
considered
information
showing
that
the
Adviser’s
mutual
fund
business
is
generally
more
complex
from
a
business
and
compliance
perspective
than
its
institutional
account
business
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
greater
asset
flows,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
proprietary
mutual
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
mutual
fund
business
versus
managing
a
discrete
pool
of
assets
as
a
subadviser
to
another
institution’s
mutual
fund
or
for
an
institutional
account
and
that
the
Adviser
generally
performs
significant
additional
services
and
assumes
greater
risk
in
managing
the
fund
and
other
T.
Rowe
Price
funds
than
it
does
for
institutional
account
clients,
including
subadvised
funds.
On
the
basis
of
the
information
provided
and
the
factors
considered,
the
Board
concluded
that
the
fees
paid
by
the
fund
under
the
Advisory
Contract
are
reasonable.
Approval
of
the
Advisory
Contract
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
Contract,
including
the
amendment
to
the
Advisory
Contract
that
will
become
effective
on
May
1,
2024.
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)
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
E300-051
8/24
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 and/or the Statement of Additional Information.
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) Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
T. Rowe Price Equity Income Portfolio
| | | | |
| By | | /s/ David Oestreicher | | |
| | David Oestreicher | | |
| | Principal Executive Officer | | |
| | |
| Date | | August 20, 2024 | | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | |
| By | | /s/ David Oestreicher | | |
| | David Oestreicher | | |
| | Principal Executive Officer | | |
| | |
| Date | | August 20, 2024 | | |
| | | | |
| By | | /s/ Alan S. Dupski | | |
| | Alan S. Dupski | | |
| | Principal Financial Officer | | |
| | |
| Date | | August 20, 2024 | | |
