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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-7059
T. Rowe Price Blue Chip Growth Fund, 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)
Registrants telephone number, including area code: (410) 345-2000 Date of fiscal year end: December 31 Date of reporting period: March 31, 2008 The accompanying notes are an
integral part of this Portfolio of Investments. T. Rowe Price Blue Chip Growth Fund, Inc.
(the fund), is registered under the Investment Company Act of 1940 (the 1940
Act) as a diversified, open-end management investment company. The fund seeks to
provide long-term capital growth. Income is a secondary objective. NOTE 1 - SIGNIFICANT ACCOUNTING
POLICIES Basis of Preparation The accompanying Portfolio of Investments
was prepared in accordance with accounting principles generally accepted in the
United States of America, which require the use of estimates made by fund
management. Fund management believes that estimates and security valuations are
appropriate; however, actual results may differ from those estimates, and the
security valuations reflected in the Portfolio of Investments may differ from
the value the fund receives upon sale of the securities. Investment Transactions Investment transactions are accounted for
on the trade date. 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 quoted by a major bank.
Purchases and sales of securities are translated into U.S. dollars at the
prevailing exchange rate on the date of the transaction. New Accounting
Pronouncement On January 1, 2008, the fund adopted
Statement of Financial Accounting Standards No. 157 (FAS 157), Fair Value Measurements. FAS 157 defines fair value, establishes the framework for measuring fair
value, and expands the disclosures of fair value measurements in the financial
statements. Adoption of FAS 157 did not have a material impact on the funds net
assets or results of operations.
ITEM 1. SCHEDULE OF INVESTMENTS
T. ROWE PRICE BLUE CHIP GROWTH
FUND
Unaudited
March 31, 2008
Portfolio of Investments
Shares
Value
(Cost and value
in $000s)
COMMON STOCKS 99.8%
CONSUMER DISCRETIONARY 8.7%
Diversified Consumer Services 0.0%
Apollo Group,
Class A (1)
100,000
4,320
4,320
Hotels, Restaurants & Leisure 3.1%
International
Game Technology
1,150,000
46,242
Las Vegas Sands
(1)
1,135,000
83,581
Marriott, Class
A
2,230,000
76,623
McDonald's
890,000
49,635
MGM Mirage
(1)
400,000
23,508
Yum!
Brands
1,900,000
70,699
350,288
Internet & Catalog Retail 2.0%
Amazon.com
(1)
3,130,000
223,169
Expedia
(1)
500,000
10,945
234,114
Media 1.7%
Discovery
Holding, Class A (1)
1,120,000
23,766
McGraw-Hill
1,700,000
62,815
Omnicom
1,900,000
83,942
Shaw
Communications, B Shares
1,000,000
18,180
188,703
Multiline Retail 1.1%
Kohl's
(1)
2,350,000
100,792
Target
500,000
25,340
126,132
Specialty Retail 0.4%
Bed Bath &
Beyond (1)
1,400,000
41,300
41,300
Textiles, Apparel & Luxury Goods 0.4%
Coach
(1)
1,700,000
51,255
51,255
Total Consumer
Discretionary
996,112
CONSUMER STAPLES 6.0%
Beverages 0.5%
PepsiCo
880,000
63,536
63,536
Food & Staples Retailing 4.1%
Costco
Wholesale
970,000
63,021
CVS
Caremark
6,850,000
277,493
Sysco
700,000
20,314
Wal-Mart
1,960,000
103,253
464,081
Household Products 1.4%
Procter &
Gamble
2,230,000
156,256
156,256
Total Consumer
Staples
683,873
ENERGY 9.7%
Energy Equipment & Services 5.5%
Baker
Hughes
1,500,000
102,750
Schlumberger
3,670,000
319,290
Smith
International
3,130,000
201,040
623,080
Oil, Gas & Consumable Fuels 4.2%
Chevron
430,000
36,705
EOG
Resources
385,000
46,200
ExxonMobil
1,730,000
146,324
Murphy
Oil
1,450,000
119,103
Petroleo
Brasileiro, ADR
460,000
38,957
Total,
ADR
1,210,000
89,552
476,841
Total
Energy
1,099,921
FINANCIALS 11.2%
Capital Markets 9.6%
Ameriprise
Financial
1,750,000
90,738
Bank of New York
Mellon
2,500,000
104,325
BlackRock
130,000
26,543
Charles
Schwab
3,850,000
72,496
Franklin
Resources
1,630,000
158,094
Goldman
Sachs
730,000
120,735
Merrill
Lynch
1,030,000
41,962
Morgan
Stanley
2,260,000
103,282
Northern
Trust
1,450,000
96,381
State
Street
3,470,000
274,130
UBS
(CHF)
10,000
291
1,088,977
Consumer Finance 0.3%
American
Express
700,000
30,604
30,604
Diversified Financial Services 0.7%
CME
Group
170,000
79,747
IntercontinentalExchange (1)
34,000
4,437
84,184
Insurance 0.6%
Prudential
Financial
890,000
69,642
69,642
Total
Financials
1,273,407
HEALTH CARE 16.9%
Biotechnology 4.8%
Celgene
(1)
2,100,000
128,709
Genentech
(1)
2,300,000
186,714
Gilead Sciences
(1)
4,480,000
230,854
546,277
Health Care Equipment & Supplies 4.7%
Alcon
541,000
76,957
Baxter
International
820,000
47,412
Becton,
Dickinson & Company
275,000
23,609
Intuitive
Surgical (1)
103,000
33,408
Medtronic
2,750,000
133,018
St. Jude Medical
(1)
2,800,000
120,932
Stryker
1,585,000
103,104
538,440
Health Care Providers & Services 4.9%
Aetna
2,950,000
124,166
Cardinal
Health
220,000
11,552
Express Scripts
(1)
1,300,000
83,616
Humana
(1)
950,000
42,617
Laboratory
Corporation of America (1)
1,600,000
117,888
McKesson
1,300,000
68,081
Medco
(1)
2,000,000
87,580
WellPoint
(1)
500,000
22,065
557,565
Life Sciences Tools & Services 0.2%
Thermo Fisher
Scientific (1)
430,000
24,441
24,441
Pharmaceuticals 2.3%
Allergan
1,630,000
91,916
Merck
910,000
34,535
Novartis,
Regulation D Shares (CHF)
10,000
513
Roche Holding -
Genusscheine (CHF)
460,000
86,687
Schering-Plough
2,500,000
36,025
Wyeth
300,000
12,528
262,204
Total Health
Care
1,928,927
INDUSTRIALS & BUSINESS SERVICES 12.0%
Aerospace & Defense 3.2%
General
Dynamics
2,050,000
170,908
Lockheed
Martin
640,000
63,552
Rockwell
Collins
770,000
44,006
United
Technologies
1,240,000
85,337
363,803
Air
Freight & Logistics 0.4%
Expeditors
International of Washington
890,000
40,210
40,210
Construction & Engineering 0.8%
Foster Wheeler
(1)
1,670,000
94,556
94,556
Industrial Conglomerates 4.0%
GE
8,600,000
318,286
McDermott
International (1)
1,475,000
80,859
Tyco
International
1,210,000
53,301
452,446
Machinery 3.3%
Danaher
3,800,000
288,914
Illinois Tool
Works
925,000
44,613
Joy
Global
665,000
43,331
PACCAR
40,000
1,800
378,658
Trading Companies & Distributors 0.3%
Fastenal
700,000
32,151
32,151
Total
Industrials & Business Services
1,361,824
INFORMATION TECHNOLOGY 26.7%
Communications Equipment 5.7%
Cisco Systems
(1)
7,000,000
168,630
Corning
4,000,000
96,160
Juniper Networks
(1)
6,310,000
157,750
Nokia,
ADR
3,950,000
125,729
QUALCOMM
2,525,000
103,525
651,794
Computers & Peripherals 4.2%
Apple
(1)
1,675,000
240,362
Dell
(1)
3,700,000
73,704
EMC
(1)
5,000,000
71,700
Hewlett-Packard
1,925,000
87,896
473,662
Internet Software & Services 4.2%
eBay
(1)
2,620,000
78,181
Google, Class A
(1)
676,000
297,758
Monster
Worldwide (1)
1,500,000
36,315
VeriSign
(1)
1,839,800
61,155
473,409
IT
Services 3.4%
Accenture, Class
A
2,260,000
79,484
Automatic Data
Processing
3,000,000
127,170
Fiserv
(1)
845,000
40,636
Mastercard,
Class A
235,000
52,403
Visa, Class A
(1)
1,401,400
87,391
387,084
Semiconductor & Semiconductor Equipment
3.0%
Analog
Devices
1,400,000
41,328
Applied
Materials
1,810,000
35,313
Broadcom, Class
A (1)
1,000,000
19,270
Intel
3,800,000
80,484
Marvell
Technology Group (1)
6,560,000
71,373
Xilinx
4,030,000
95,712
343,480
Software 6.2%
Adobe Systems
(1)
1,500,000
53,385
Autodesk
(1)
1,780,000
56,034
Electronic Arts
(1)
2,100,000
104,832
Intuit
(1)
770,000
20,798
McAfee
(1)
1,000,000
33,090
Microsoft
10,330,000
293,165
Nintendo
(JPY)
160,000
82,737
Oracle
(1)
3,300,000
64,548
708,589
Total
Information Technology
3,038,018
MATERIALS 4.2%
Chemicals 2.7%
Monsanto
1,730,000
192,895
Praxair
1,385,000
116,658
309,553
Metals & Mining 1.5%
Freeport-McMoRan
Copper & Gold
1,640,000
157,801
Nucor
100,000
6,774
164,575
Total
Materials
474,128
TELECOMMUNICATION SERVICES 4.4%
Diversified Telecommunication Services 0.4%
AT&T
1,400,000
53,620
53,620
Wireless Telecommunication Services 4.0%
America Movil,
ADR
3,220,000
205,082
American Tower
Systems, Class A (1)
3,950,000
154,879
Bharti Airtel
(INR) (1)
640,000
13,093
MetroPCS
Communications (1)
770,000
13,090
Rogers
Communications, Class B
1,850,000
66,452
452,596
Total
Telecommunication Services
506,216
Total Common
Stocks (Cost $9,393,122)
11,362,426
SHORT-TERM INVESTMENTS 0.2%
Money Market Funds 0.2%
T. Rowe Price
Reserve Investment Fund, 3.29% (2)(3)
22,755,362
22,755
Total Short-Term
Investments (Cost $22,755)
22,755
Total Investments in Securities
100.0% of Net Assets (Cost $9,415,877)
$
11,385,181
Denominated in U.S. dollars unless otherwise noted.
(1)
Non-income producing
(2)
Seven-day yield
(3)
Affiliated Companies
ADR
American Depository Receipts
CHF
Swiss Franc
INR
Indian Rupee
JPY
Japanese Yen
(3)
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 which is under common
ownership or control.
Purchase
Sales
Investment
Value
Affiliate
Cost
Cost
Income
3/31/08
12/31/07
T. Rowe Price Reserve
Investment Fund
3.29%
¤
¤
$356
$ 22,755
$ 20,767
Totals
$356
$22,755
$ 20,767
¤ Purchase and sale information not
shown for cash management funds.
Other information for the period
ended March 31, 2008 related to affiliated companies is as
follows:
Investment in securities, at
cost
$
22,755
Dividend income
356
Interest income
-
Investment income
$
356
Realized gain (loss) on
securities
$
-
Capital gain distributions
from
mutual funds
$
-
T. Rowe Price Blue
Chip Growth Fund
Unaudited
March 31, 2008
Notes to Portfolio of
Investments
NOTE 2
VALUATION
The funds investments are reported at fair value as defined under FAS 157. The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business.
Valuation Methods
Equity securities listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest 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 latest bid and asked prices for domestic securities and the last quoted sale price for international securities.
Investments in mutual funds are valued at the mutual funds closing net asset value per share on the day of valuation.
Other investments, including restricted securities, and those for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by the T. Rowe Price Valuation Committee, established by the funds Board of Directors.
For valuation purposes, the last quoted prices of non-U.S. equity securities may be adjusted under the circumstances described below. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, the fund will adjust the previous closing prices to reflect what it believes to be the fair value of the securities as of the close of the NYSE. In deciding whether it is necessary to adjust closing prices to reflect fair value, the fund reviews 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. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. The fund uses outside pricing services to provide it with closing prices and information to evaluate and/or adjust those prices. The fund cannot predict how often it will use closing prices and how often it will determine it necessary to adjust those prices to reflect fair value. As a means of evaluating its security valuation process, the fund routinely compares closing prices, the next days opening prices in the same markets, and adjusted prices.
Valuation Inputs Various inputs are used to determine the value of the funds investments. These inputs are summarized in the three broad levels listed below:
Level 1 | | quoted prices in active markets for identical securities |
Level 2 | | observable inputs other than Level 1 quoted prices (including, but not limited to, |
quoted prices for similar securities, interest rates, prepayment speeds, credit risk) | ||
Level 3 | | unobservable inputs |
Observable inputs are those based on market data obtained from sources independent of the fund, and unobservable inputs reflect the funds own assumptions based on the best information available. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, non-U.S. equity securities actively traded in foreign markets generally are reflected in Level 2 despite the availability of closing prices, because the fund evaluates and determines whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described above. The following table summarizes the funds investments, based on the inputs used to determine their values on March 31, 2008:
Valuation Inputs | Investments in | |
Securities | ||
Level 1 quoted prices | $ | 11,179,105,000 |
Level 2 significant other observable inputs | 206,076,000 | |
Level 3 significant unobservable inputs | 0 | |
Total | $ | 11,385,181,000 |
NOTE 3 - FEDERAL INCOME TAXES |
At March 31, 2008, the cost of investments for federal income tax purposes was $9,415,877,000. Net unrealized gain aggregated $1,969,612,000 at period-end, of which $2,448,299,000 related to appreciated investments and $478,687,000 related to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS |
The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the T. Rowe Price Reserve Investment Funds), open-end management investment companies managed by T. Rowe Price Associates, Inc. (Price Associates), and considered affiliates of the fund. The T. Rowe Price Reserve Investment Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates and are not
available for direct purchase by members of the public. The T. Rowe Price Reserve Investment Funds pay no
investment management fees. |
Item 2. Controls and Procedures.
(a) The registrants principal executive officer and principal financial officer have evaluated the registrants disclosure controls and procedures within 90 days of this filing and have concluded that the registrants 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-Q was recorded, processed, summarized, and reported timely.
(b) The registrants principal executive officer and principal financial officer are aware of no change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3. Exhibits.
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 Blue Chip Growth Fund, Inc.
By | /s/ Edward C. Bernard |
Edward C. Bernard | |
Principal Executive Officer | |
Date | May 20, 2008 |
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/ Edward C. Bernard |
Edward C. Bernard | |
Principal Executive Officer | |
Date | May 20, 2008 |
By | /s/ Gregory K. Hinkle |
Gregory K. Hinkle | |
Principal Financial Officer | |
Date | May 20, 2008 |
Item 3. | |||
CERTIFICATIONS | |||
I, Edward C. Bernard, certify that: | |||
1. | I have reviewed this report on Form N-Q of T. Rowe Price Blue Chip Growth Fund, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit | ||
to state a material fact necessary to make the statements made, in light of the circumstances under | |||
which such statements were made, not misleading with respect to the period covered by this report; | |||
3. | Based on my knowledge, the schedules of investments included in this report fairly present in all | ||
material respects the investments of the registrant as of the end of the fiscal quarter for which the | |||
report is filed; | |||
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining | ||
disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act | |||
of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the | |||
Investment Company Act of 1940) for the registrant and have: | |||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and | ||
procedures to be designed under our supervision, to ensure that material information relating | |||
to the registrant, including its consolidated subsidiaries, is made known to us by others | |||
within those entities, particularly during the period in which this report is being prepared; | |||
(b) | Designed such internal control over financial reporting, or caused such internal control over | ||
financial reporting to be designed under our supervision, to provide reasonable assurance | |||
regarding the reliability of financial reporting and the preparation of financial statements for | |||
external purposes in accordance with generally accepted accounting principles; | |||
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and | ||
presented in this report our conclusions about the effectiveness of the disclosure controls and | |||
procedures, as of a date within 90 days prior to the filing date of this report, based on such | |||
evaluation; and | |||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting | ||
that occurred during the registrants most recent fiscal quarter that has materially affected, or | |||
is reasonably likely to materially affect, the registrants internal control over financial | |||
reporting; and | |||
5. | The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the | ||
audit committee of the registrant's board of directors (or persons performing the equivalent | |||
functions): | |||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal | ||
control over financial reporting which are reasonably likely to adversely affect the | |||
registrant's ability to record, process, summarize, and report financial information; and | |||
(b) | Any fraud, whether or not material, that involves management or other employees who have | ||
a significant role in the registrant's internal control over financial reporting. | |||
Date: May 20, 2008 | /s/ Edward C. Bernard | ||
Edward C. Bernard | |||
Principal Executive Officer | |||
BCG |
CERTIFICATIONS | |||
I, Gregory K. Hinkle, certify that: | |||
1. | I have reviewed this report on Form N-Q of T. Rowe Price Blue Chip Growth Fund, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit | ||
to state a material fact necessary to make the statements made, in light of the circumstances under | |||
which such statements were made, not misleading with respect to the period covered by this report; | |||
3. | Based on my knowledge, the schedules of investments included in this report fairly present in all | ||
material respects the investments of the registrant as of the end of the fiscal quarter for which the | |||
report is filed; | |||
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining | ||
disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act | |||
of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the | |||
Investment Company Act of 1940) for the registrant and have: | |||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and | ||
procedures to be designed under our supervision, to ensure that material information relating | |||
to the registrant, including its consolidated subsidiaries, is made known to us by others | |||
within those entities, particularly during the period in which this report is being prepared; | |||
(b) | Designed such internal control over financial reporting, or caused such internal control over | ||
financial reporting to be designed under our supervision, to provide reasonable assurance | |||
regarding the reliability of financial reporting and the preparation of financial statements for | |||
external purposes in accordance with generally accepted accounting principles; | |||
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and | ||
presented in this report our conclusions about the effectiveness of the disclosure controls and | |||
procedures, as of a date within 90 days prior to the filing date of this report, based on such | |||
evaluation; and | |||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting | ||
that occurred during the registrants most recent fiscal quarter that has materially affected, or | |||
is reasonably likely to materially affect, the registrants internal control over financial | |||
reporting; and | |||
5. | The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the | ||
audit committee of the registrant's board of directors (or persons performing the equivalent | |||
functions): | |||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal | ||
control over financial reporting which are reasonably likely to adversely affect the | |||
registrant's ability to record, process, summarize, and report financial information; and | |||
(b) | Any fraud, whether or not material, that involves management or other employees who have | ||
a significant role in the registrant's internal control over financial reporting. | |||
Date: May 20, 2008 | /s/ Gregory K. Hinkle | ||
Gregory K. Hinkle | |||
Principal Financial Officer | |||
BCG |