Fund Evaluator:

T. Rowe Price Tax-Efficient Equity Overview

T. Rowe Price Tax-Efficient Equity (PREFX) is an actively managed U.S. Equity Large Growth fund. T. Rowe Price launched the fund in 2000.

The investment seeks to maximize after-tax growth of capital through investments primarily in common stocks. The fund seeks to buy and hold for the long-term stocks of attractively valued, high-quality growth companies. It typically uses a growth approach in selecting investments by looking for companies with one or more of the following characteristics: a demonstrated ability to consistently increase revenues, earnings, and cash flow; strong management; attractive business niches; and a sustainable competitive advantage.

About T. Rowe Price Tax-Efficient Equity (PREFX)

There are 1 members of the management team with an average tenure of 25.52 years: Donald Peters (2000). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 3000 Growth TR USD index with a weighting of 100%. T. Rowe Price Tax-Efficient Equity has 340 securities in its portfolio. The top 10 holdings constitute 57.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

T. Rowe Price Tax-Efficient Equity is part of the Equity global asset class and is within the U.S. Equity fund group. T. Rowe Price Tax-Efficient Equity has 1.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.2%. There is 1.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). T. Rowe Price Tax-Efficient Equity has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $455 million in total assets, which is below the $2 billion average for the Large Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PREFX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The T. Rowe Price Tax-Efficient Equity expense ratio is high compared to funds in the Large Growth category. T. Rowe Price Tax-Efficient Equity has an expense ratio of 0.82%, which is 15% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. T. Rowe Price Tax-Efficient Equity has a portfolio turnover rate of 17%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 54% for the Large Growth category.

Recently, in the month of June 2026, T. Rowe Price Tax-Efficient Equity returned -2.9%, which earned it a grade of D, as the Large Growth category had an average return of -1.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

T. Rowe Price Tax-Efficient Equity has a trailing yield of 0.00%, which is below the 0.06% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

T. Rowe Price Tax-Efficient Equity Grades

Year to date, the fund has returned 5.1%, 2.0 percentage points worse than the category, which translates into a grade of D. The fund has returned 14.2% over the past year (grade of C), 21.0% over the past three years (grade of C) and 10.8% per year over the past five years (grade of C) and 16.6% per year over the past 10 years (grade of C).

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