N-Q 1 sum.htm NQ ~ SUMMIT FUNDS, INC. T. Rowe Price Summit Funds

Item 1. Schedule of Investments

T. Rowe Price Summit Cash Reserves Fund    
Unaudited    January 31, 2006 
PORTFOLIO OF INVESTMENTS (1) 
$ Par 
Value 
(Amounts in 000s)     
ASSET-BACKED SECURITIES 0.8%     
Americredit Automobile Receivable Trust     
             Series 2005-CF, Class A1, 3.845%, 9/6/06  2,038  2,039 
             Series 2005-DA, Class A1, 4.344%, 12/6/06  3,248  3,247 
Banc of America Securitzed Trust, Series 2005-WF1, Class A1     
             3.505%, 7/18/06  783  783 
Capital One Auto Finance Trust, Series 2005-C, Class A1     
             4.098%, 10/15/06  5,099  5,099 
CIT Equipment Collateral Trust, Series 2005-EF1, Class A1     
             3.852%, 9/20/06  2,357  2,357 
GreatAmerica Leasing Receivable, Series 2005-1, Class A1, 144A     
             4.31%, 10/20/06  2,647  2,647 
GS Auto Loan Trust, Series 2005-1, Class A1, 3.848%, 8/15/06  1,659  1,659 
Household Automotive Trust, Series 2005-3, Class A1     
             4.286%, 11/17/06  5,633  5,633 
Hyundai Auto Receivables Trust, Series 2005-A, Class A1     
             3.514%, 7/17/06  668  668 
M&I Auto Loan Trust, Series 2005-1, Class A1, 4.406%, 11/20/06  9,148  9,148 
Navistar Financial Corp. Owner Trust, Series 2005-A, Class A1     
             3.616%, 7/17/06  324  324 
Triad Auto Receivables Owner Trust, Series 2005-B, Class A1     
             3.604%, 8/14/06  45  46 
Total Asset-Backed Securities (Cost $33,650)    33,650 
BANK NOTES 0.9%     
Lasalle Bank, 4.10%, 7/31/06  10,000  10,000 
World Savings Bank, 4.44%, 3/1/06  26,000  26,000 
Total Bank Notes (Cost $36,000)    36,000 
CERTIFICATES OF DEPOSIT - DOMESTIC * 7.8%     
Branch Banking & Trust, 4.415%, 2/21/06  36,000  36,000 
Citibank New York N.A.     
                     4.34%, 2/23/06  29,000  29,000 
                     4.475%, 3/29/06  20,000  20,000 
                     4.57%, 4/24/06  25,000  25,000 
Compass Bank, VR, 4.47%, 6/14/06  11,500  11,500 
DEPFA Bank, 4.30%, 2/2/06  32,000  32,000 
Dexia Credit, 4.02%, 7/21/06  11,000  11,000 
First Tennessee Bank, 4.41%, 2/16/06  12,000  12,000 
Manufacturers and Traders Trust, VR, 4.494%, 9/26/06  9,000  8,998 
Mercantile Safe Deposit & Trust     
                     4.44%, 2/22/06  12,000  12,000 
                     VR, 4.475%, 10/23/06  6,000  5,998 
National City Bank of Indiana, 3.765%, 3/29/06  5,000  4,994 
Treasury Bank, VR, 4.43%, 2/23/06  11,000  11,000 
Wells Fargo Bank     
                     4.025%, 7/25/06  11,500  11,500 
                     4.52%, 3/24/06  60,000  60,000 
Wilmington Trust, 4.49%, 4/5/06  29,000  29,000 
Total Certificates of Deposit - Domestic * (Cost $319,990)    319,990 
CERTIFICATES OF DEPOSIT - EURODOLLAR ^ 7.7%     
ABN Amro Bank, 4.30%, 2/6/06  24,000  24,000 
Bank of Nova Scotia, 4.46%, 2/27/06  30,000  30,000 
Barclays Bank, 4.0575%, 7/26/06  15,000  15,000 
BNP Paribas, 4.55%, 4/20/06  35,000  35,000 
Credit Agricole     
                     4.025%, 9/11/06  36,000  36,000 
                     4.57%, 4/24/06  8,000  8,000 
Danske Bank, 3.815%, 6/19/06  3,000  2,998 
Deutsche Bank, 4.52%, 4/12/06  9,000  8,999 
HBOS Treasury Services, 4.455%, 3/28/06  32,000  32,000 
KBC Bank, 4.43%, 2/28/06  25,000  25,000 
Lloyds TSB Bank, 4.50%, 4/12/06  48,000  48,000 
Northern Rock, 4.51%, 3/27/06  10,000  10,000 
Societe Generale     
                     4.395%, 3/6/06  5,000  5,000 
                     4.45%, 3/28/06  24,000  24,000 
                     4.80%, 12/5/06  12,000  12,000 
Total Certificates of Deposit - Eurodollar ^ (Cost $315,997)    315,997 
CERTIFICATES OF DEPOSIT - YANKEE ++ 9.9%     
Abbey National Treasury Services, 4.30%, 2/1/06  29,000  29,000 
Banco Bilbao Vizcaya     
                     4.55%, 4/3/06  35,000  35,000 
                     4.565%, 4/24/06  7,000  7,000 
Bank of Montreal (Chicago), 4.47%, 3/28/06  34,000  34,000 
Barclays Bank     
                     4.535%, 3/28/06  35,000  35,000 
                     4.55%, 4/17/06  10,000  10,000 
BNP Paribas, 4.475%, 4/4/06  25,000  25,000 
Credit Suisse First Boston, 4.00%, 7/18/06  22,000  22,000 
Deutsche Bank, 4.22%, 8/15/06  33,000  33,028 
Fortis Bank, 4.46%, 2/23/06  16,000  16,000 
Lloyds Bank, 4.47%, 2/23/06  10,000  10,000 
Natexis Banques Populaires, VR, 4.30%, 2/1/06  18,000  18,000 
Nordea Bank Finland, 4.50%, 3/27/06  23,000  23,000 
Royal Bank of Scotland, 4.66%, 7/13/06  48,000  48,000 
Swedbank, 4.07%, 7/28/06  11,000  11,000 
Toronto-Dominion Bank     
                     4.01%, 8/1/06  11,000  11,000 
                     4.45%, 2/27/06  31,000  31,000 
UBS, 4.47%, 3/24/06  10,000  10,000 
Total Certificates of Deposit - Yankee ++ (Cost $408,028)    408,028 
COMMERCIAL PAPER 26.4%     
ANZ (Delaware)     
                     4.25%, 2/6/06  1,500  1,499 
                     4.27%, 2/2/06  17,800  17,798 
                     4.30%, 2/22/06  2,300  2,294 
                     4.375%, 2/22/06  1,200  1,197 
                     4.41%, 2/22/06  1,000  998 
Bear Stearns, 4.465%, 3/20/06  18,000  17,895 
Caisse D'Amortissement, 4.28%, 2/3/06  6,000  5,999 
Calyon North America, 4.25%, 2/1/06  15,000  15,000 
Canadian Imperial Holdings, 4.505%, 3/3/06  30,000  29,887 
Canadian Wheat Board, 4.30%, 2/2/06  2,253  2,253 
Capital One Multi-Asset Executive Trust, 4.54%, 3/27/06  15,000  14,898 
CBA (Delaware) Finance     
                     4.00%, 4/24/06  11,000  10,899 
                     4.25%, 2/15/06  8,000  7,987 
                     4.33%, 2/9/06  50,100  50,052 
Credit Suisse First Boston, 4.445%, 3/17/06  7,000  6,962 
DaimlerChrysler Revolving Auto     
                     4.31%, 2/1/06  7,300  7,300 
                     4.43%, 3/10/06  9,000  8,959 
                     4.45%, 3/14/06  15,000  14,924 
                     4.50%, 2/21/06  5,000  4,987 
Dexia Delaware     
                     4.30%, 2/1/06  41,067  41,067 
                     4.50%, 3/28/06  16,000  15,890 
Export Development Corp., 4.47%, 2/1/06  12,000  12,000 
FCAR Owner Trust     
                     4.34%, 2/9/06  37,250  37,214 
                     4.41%, 3/16/06  50,000  49,737 
GE Capital     
                     4.26%, 2/1/06  1,900  1,900 
                     4.52%, 6/30/06  10,300  10,107 
General Electric, 4.41%, 2/16/06  5,000  4,991 
HBOS Treasury Services     
                     4.27%, 2/7/06  4,200  4,197 
                     4.27%, 2/22/06  1,000  997 
                     4.28%, 2/10/06  3,000  2,997 
                     4.31%, 2/22/06  1,600  1,596 
                     4.32%, 2/28/06  5,700  5,682 
                     4.50%, 4/18/06  10,000  9,905 
HSBC Bank USA, 4.29%, 2/3/06  8,000  7,998 
HSBC Finance, 4.29%, 2/1/06  17,000  17,000 
ING Funding     
                     4.29%, 2/3/06  20,400  20,395 
                     4.31%, 2/8/06  20,150  20,133 
K2 (USA)     
                     4.28%, 2/13/06  12,180  12,163 
                     4.31%, 2/22/06  16,500  16,459 
                     4.31%, 2/23/06  4,400  4,388 
                     4.36%, 3/6/06  11,000  10,956 
                     4.40%, 3/27/06  1,300  1,291 
Links Finance, 4.26%, 2/14/06  25,000  24,962 
Merrill Lynch, 4.49%, 2/1/06  30,000  30,000 
National City Credit, 4.41%, 3/13/06  25,000  24,877 
National Rural Utilities, 4.42%, 2/23/06  6,000  5,984 
New Center Asset Trust     
                     4.32%, 3/16/06  14,000  13,928 
                     4.46%, 3/15/06  34,700  34,519 
New York State Power Auth.     
                     4.36%, 2/13/06  10,000  9,985 
                     4.42%, 2/23/06  6,000  5,984 
                     4.50%, 3/2/06  16,851  16,790 
New York Times, 4.49%, 2/9/06  5,225  5,220 
Nordea North America     
                     4.26%, 2/14/06  2,539  2,535 
                     4.31%, 2/3/06  1,300  1,300 
                     4.34%, 2/6/06  3,500  3,498 
Oesterreichische Kontrollbank, 4.50%, 6/21/06  37,300  36,647 
PNC Bank, 4.47%, 3/23/06  24,000  23,851 
Prudential Funding, 4.41%, 2/21/06  24,000  23,941 
San Paolo United States Financial     
                     4.25%, 2/24/06  1,000  997 
                     4.345%, 3/2/06  1,255  1,251 
Siemens Capital, 4.31%, 2/8/06  4,750  4,746 
Sigma Finance, 4.01%, 7/21/06  22,000  22,000 
Stadshypotek Delaware     
                     4.27%, 2/21/06  30,000  29,929 
                     4.35%, 2/3/06  2,650  2,649 
Stanford University, 4.46%, 3/14/06  23,000  22,883 
Svenska Handelsbanken, 4.30%, 2/27/06  3,600  3,589 
Toyota Motor Credit, 4.53%, 4/3/06  57,000  56,562 
UBS Finance     
                     4.29%, 2/1/06  35,350  35,350 
                     4.33%, 2/22/06  1,655  1,651 
                     4.50%, 3/2/06  13,000  12,953 
Westpac Banking Corp., 144A     
                     4.38%, 3/9/06  10,800  10,753 
                     4.385%, 3/9/06  21,400  21,306 
                     4.50%, 6/15/06  4,270  4,198 
                     4.52%, 6/16/06  1,500  1,475 
                     4.53%, 6/13/06  5,000  4,917 
Whistlejacket Capital, 144A     
                     4.27%, 2/21/06  29,000  28,931 
                     4.30%, 2/21/06  2,347  2,341 
                     4.35%, 2/15/06  5,357  5,348 
                     4.39%, 3/9/06  6,009  5,983 
                     4.39%, 3/14/06  5,635  5,607 
Yale University, 4.34%, 2/3/06  4,500  4,499 
Total Commercial Paper (Cost $1,084,790)    1,084,790 
COMMERCIAL PAPER - 4(2) 41.4%     
Alliance & Leicester     
                     4.26%, 2/21/06  20,000  19,953 
                     4.30%, 2/21/06  10,000  9,976 
Allied Irish Banks North America, 4.31%, 2/6/06  36,000  35,978 
Alpine Securitization     
                     4.30%, 2/2/06  35,000  34,996 
                     4.50%, 3/3/06  24,000  23,910 
ASB Bank, 144A     
                     4.28%, 2/8/06  5,000  4,996 
                     4.32%, 2/8/06  9,000  8,992 
Atlantic Asset Securitization     
                     4.31%, 2/2/06  5,702  5,701 
                     4.52%, 3/24/06  13,629  13,542 
                     4.53%, 3/21/06  2,246  2,232 
Bank of Ireland     
                     4.31%, 3/13/06  5,000  4,976 
                     4.50%, 4/20/06  25,000  24,756 
BASF, 4.43%, 3/27/06  30,000  29,801 
Cafco     
                     4.39%, 3/9/06  40,500  40,322 
                     4.45%, 3/16/06  25,095  24,962 
                     4.50%, 3/13/06  7,000  6,965 
Cargill Asia, 4.48%, 2/1/06  23,000  23,000 
Ciesco     
                     4.44%, 3/6/06  17,000  16,931 
                     4.44%, 3/7/06  24,000  23,899 
Citibank Credit Card Issuance Trust, 4.32%, 2/6/06  70,115  70,073 
CRC Funding     
                     4.35%, 2/10/06  10,000  9,989 
                     4.44%, 3/6/06  11,000  10,955 
                     4.45%, 2/23/06  33,000  32,911 
Danske     
                     4.26%, 2/27/06  15,500  15,452 
                     4.29%, 2/7/06  2,000  1,998 
                     4.31%, 2/9/06  7,600  7,593 
                     4.37%, 2/7/06  3,000  2,998 
DEPFA Bank, 4.52%, 6/14/06  3,500  3,442 
Fairway Finance     
                     4.33%, 2/13/06  6,463  6,454 
                     4.40%, 2/17/06  4,252  4,244 
                     4.41%, 2/21/06  10,000  9,976 
                     4.42%, 2/13/06  11,522  11,505 
                     4.42%, 3/14/06  3,191  3,175 
                     4.43%, 2/21/06  10,091  10,066 
                     4.44%, 2/21/06  12,000  11,970 
                     4.47%, 3/20/06  4,097  4,073 
                     4.51%, 2/27/06  6,000  5,980 
                     4.52%, 3/15/06  1,678  1,669 
Falcon Asset Securitization     
                     4.30%, 2/3/06  3,628  3,627 
                     4.32%, 2/7/06  7,500  7,495 
                     4.35%, 2/10/06  50,000  49,946 
                     4.37%, 2/13/06  12,789  12,770 
                     4.50%, 2/24/06  32,000  31,908 
Ford Credit Floorplan Master Owner Trust     
                     4.25%, 2/6/06  18,000  17,989 
                     4.31%, 2/21/06  19,107  19,061 
                     4.35%, 2/7/06  1,000  999 
                     4.38%, 3/6/06  36,000  35,856 
                     4.41%, 3/13/06  10,000  9,951 
Fortis Funding, 4.32%, 2/6/06  17,750  17,739 
Grampian Funding, 4.35%, 3/28/06  15,000  14,900 
Home Depot, 4.50%, 2/3/06  49,000  48,988 
IXIS, 144A     
                     4.25%, 2/21/06  28,000  27,934 
                     4.28%, 2/16/06  13,400  13,376 
                     4.47%, 3/22/06  32,000  31,805 
                     4.55%, 6/23/06  10,750  10,557 
KBC Financial Products International     
                     4.36%, 3/29/06  10,000  9,932 
                     4.43%, 3/27/06  1,500  1,490 
KFW International Finance     
                     4.28%, 2/3/06  10,000  9,998 
                     4.31%, 2/8/06  38,000  37,968 
                     4.39%, 2/17/06  42,500  42,417 
Kitty Hawk Funding, 4.42%, 2/17/06  13,923  13,896 
MassMutual Funding, 4.50%, 2/24/06  15,000  14,957 
MBNA Master Credit Card Trust II     
                     4.37%, 2/23/06  39,000  38,896 
                     4.47%, 4/6/06  10,000  9,920 
Metlife, 4.35%, 2/27/06  40,000  39,874 
Northern Rock, 144A, 4.50%, 2/21/06  11,000  10,972 
Old Line Funding     
                     4.31%, 2/1/06  23,250  23,250 
                     4.33%, 2/7/06  15,225  15,214 
                     4.33%, 2/8/06  7,350  7,344 
Park Avenue Receivables     
                     4.30%, 2/1/06  10,250  10,250 
                     4.35%, 2/9/06  26,075  26,050 
                     4.50%, 2/23/06  23,670  23,605 
                     4.50%, 2/24/06  4,237  4,225 
Pfizer Invesment Capital     
                     4.40%, 3/23/06  8,585  8,533 
                     4.45%, 2/3/06  18,934  18,929 
Pitney Bowes, 144A, 4.45%, 2/1/06  3,319  3,319 
Preferred Receivables Funding     
                     4.32%, 2/7/06  13,408  13,399 
                     4.35%, 2/9/06  47,681  47,635 
                     4.42%, 2/17/06  7,000  6,986 
Ranger Funding     
                     4.36%, 2/9/06  31,000  30,970 
                     4.38%, 2/14/06  25,000  24,961 
                     4.40%, 2/15/06  15,000  14,974 
Sheffield Receivables Corp.     
                     4.30%, 2/7/06  34,893  34,868 
                     4.34%, 2/9/06  10,000  9,990 
                     4.37%, 2/13/06  20,000  19,971 
                     4.38%, 2/14/06  23,000  22,964 
Sigma Finance     
                     4.21%, 2/8/06  7,700  7,694 
                     4.33%, 2/28/06  10,650  10,615 
                     4.39%, 3/8/06  4,232  4,214 
                     4.52%, 6/29/06  19,000    18,647 
Sysco Corp.       
                     4.35%, 2/15/06  10,000    9,983 
                     4.50%, 2/24/06  7,400    7,379 
Tulip Funding, 4.39%, 2/14/06  36,000    35,943 
Variable Funding Capital       
                     4.33%, 2/8/06  20,000    19,983 
                     4.45%, 3/8/06  40,000    39,827 
Yorktown Capital, 4.43%, 2/21/06  15,000    14,963 
Total Commercial Paper - 4(2) (Cost $1,702,317)      1,702,317 
FUNDING AGREEMENTS 1.2%       
Genworth Life Insurance, VR, 4.669%, 1/12/07 ‡  20,000    20,000 
ING Annuity & Life Insurance       
                     4.52%, 2/17/06 ‡  10,000    10,000 
                     4.61%, 2/28/06 ‡  15,000    15,000 
Transamerica Occidential Life Insurance, VR, 4.54%, 3/1/07 ‡  5,000    5,000 
Total Funding Agreements (Cost $50,000)      50,000 
MEDIUM-TERM NOTES 2.3%       
GE Capital, VR       
                     4.519%, 2/9/07  10,000    10,000 
                     4.57%, 2/17/07  10,000    10,000 
Goldman Sachs Group, VR, 144A, 4.455%, 5/1/06  15,000    15,000 
Irish Life & Permanent, VR, 144A, 4.51%, 2/22/07  29,000    29,000 
National Rural Utilities, 6.00%, 5/15/06  1,000    1,006 
Nationwide Building Society, VR, 144A, 4.449%, 3/7/07  20,000    20,000 
SLM Corporation, VR, 4.793%, 4/25/06  8,000    8,003 
Total Medium-Term Notes (Cost $93,009)      93,009 
MUNICIPAL SECURITIES 1.6%       
Colorado Housing Fin. Auth.       
             Multi-Family, VRDN (Currently 4.46%)  26,255    26,255 
             Single-Family, VRDN (Currently 4.46%)  30,310    30,310 
Utah Board of Regents, VRDN (Currently 4.46%) (AMBAC Insured)  10,000    10,000 
Total Municipal Securities (Cost $66,565)      66,565 
U.S. GOVERNMENT AGENCY OBLIGATIONS ± 0.6%       
Federal Home Loan Bank, VR, 4.25%, 4/25/06  4,000    4,000 
Federal Home Loan Mortgage, 4.05%, 8/15/06  19,000    19,000 
Total U.S. Government Agency Obligations ± (Cost $23,000)      23,000 
 
Total Investments in Securities       
100.6% of Net Assets (Cost $4,133,346)    $4,133,346 

(1)  Denominated in U.S. dollars unless otherwise noted 
*  Domestic certificates of deposit are issued by domestic branches of 
  U.S. banks 
±  The issuer operates under a congressional charter; its securities are 
  neither issued nor guaranteed by the U.S. government. 
^  Eurodollar certificates of deposit are issued by foreign branches of 
  U.S. or foreign banks 
++  Yankee certificates of deposit are issued by U.S. branches of foreign 
  banks 
144A  Security was purchased pursuant to Rule 144A under the Securities 
  Act of 1933 and may be resold in transactions exempt from 
  registration only to qualified institutional buyers -- total value of 
  such securities at period end amounts to $269,457 and represents 
  6.6% of net assets 
4(2)  Commercial paper exempt from registration under Section 4(2) of the 
  Securities Act of 1933 and may be resold in transactions exempt 
  from registration only to dealers in that program or other “accredited 
  investors” -- total value of such securities at period-end amounts to 
  $1,702,317 and represents 41.4% of net assets 
 
AMBAC  AMBAC Assurance Corp. 
VR  Variable Rate; rate shown is effective rate at period-end 
VRDN  Variable-Rate Demand Note; rate shown is effective rate at period- 
  end 

‡Restricted Securities

Amounts in (000s)

The fund may invest in securities that cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules. The total restricted securities (excluding 144A issues) at period-end amounts to $50,000 and represents 1.2% of net assets.

  Acquisition    Acquisition 
Description  Date    Cost 
Genworth Life Insurance, VR, 4.669%, 1/12/07  4/12/05 
$ 
20,000 
ING Annuity & Life Insurance, 4.52%, 2/17/06  7/12/05    10,000 
ING Annuity & Life Insurance, 4.61%, 2/28/06  7/25/05    15,000 
Transamerica Occidental Life Insurance, VR, 4.54%, 3/1/07  11/12/04    5,000 
Totals   
$ 
50,000 

The fund has registration rights for certain restricted securities held as of January 31, 2006. Any costs related to such registration are borne by the issuer.

The accompanying notes are an integral part of this Portfolio o f Investments.

T. Rowe Price Summit Cash Reserves Fund  
Unaudited 
January 31, 2006 
Notes To Portfolio of Investments  

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

T. Rowe Price Summit Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Summit Cash Reserves Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks preservation of capital and liquidity and, consistent with these, the highest possible current income.

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.

Valuation

Securities are valued at amortized cost. Assets and liabilities for which such valuation procedures 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 fund’s Board of Directors.

Investment Transactions

Investment transactions are accounted for on the trade date.

NOTE 2 - INVESTMENT TRANSACTIONS

Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks or 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 may invest in securities that are subject to legal or contractual restrictions on resale. Although certain of these securities may be readily sold, for example, under Rule 144A, others may be illiquid, and their sale may involve substantial delays and additional costs, and prompt sale at an acceptable price may be difficult.

NOTE 3 - FEDERAL INCOME TAXES

At January 31, 2006, the cost of investments for federal income tax purposes was $4,133,346,000.

T. Rowe Price Summit GNMA Fund    
Unaudited    January 31, 2006 
PORTFOLIO OF INVESTMENTS (1) 
$ Par/Shares 
Value 
(Amounts in 000s)     
U.S. GOVERNMENT & AGENCY MORTGAGE-BACKED     
SECURITIES 95.3%     
 
U.S. Government Agency Obligations ± 8.1%     
Federal Home Loan Mortgage     
                 4.50%, 4/1/34 - 4/1/35  522  491 
                 6.50%, 7/1/14  298  306 
                 7.00%, 11/1/30  31  32 
         ARM     
                 5.055%, 11/1/35  121  119 
                 5.428%, 1/1/36  61  61 
         CMO     
                 4.50%, 3/15/16  1,100  1,071 
                 5.00%, 11/15/27  600  592 
         CMO, IO, 4.50%, 6/15/11 - 4/15/18  1,077  95 
Federal National Mortgage Assn.     
                 5.00%, 8/1/35  516  499 
                 5.50%, 4/1/34  1,362  1,350 
                 6.00%, 8/1/34  766  774 
         ARM     
                 4.694%, 9/1/35  270  264 
                 5.319%, 12/1/35  102  102 
                 5.376%, 12/1/35  127  127 
                 5.541%, 12/1/35  200  201 
                 5.695%, 12/1/35  66  66 
                 5.711%, 1/1/36  124  125 
         IO, 8.50%, 4/25/22  25  5 
    6,280 
U.S. Government Obligations 87.2%     
Government National Mortgage Assn.     
                 4.00%, 9/15/18  1,051  1,007 
                 4.50%, 9/15/35  449  430 
                 5.00%, 12/15/17 - 6/15/35  15,333  15,138 
                 5.50%, 10/15/17 - 9/15/35  16,838  16,929 
                 6.00%, 12/15/08 - 1/20/36  13,791  14,131 
                 6.50%, 12/15/14 - 1/20/36  5,036  5,249 
                 6.75%, 2/15/41  522  539 
                 7.00%, 3/15/13 - 12/15/34  2,587  2,713 
                 7.50%, 9/15/12 - 3/15/32  930  980 
                 8.00%, 4/15/17 - 2/15/30  179  190 
                 8.50%, 4/15/17 - 3/15/27  228  244 
                 9.00%, 4/15/18 - 3/20/25  33  36 
                 9.50%, 7/15/09 - 12/20/20  56  60 
                 10.00%, 8/15/13 - 3/15/26  149  164 
                 10.50%, 1/15/16 - 10/15/19  65  72 
                 11.00%, 12/15/09 - 9/20/17  13  15 
         CMO     
                 5.00%, 8/16/28  75  75 
                 5.50%, 2/20/30 - 2/20/32 ++  3,280  3,274 
         CMO, Principal Only, 3/16/28  37  34 
         TBA     
                 5.50%, 1/1/34  1,354  1,356 
                 6.00%, 1/1/33  1,834  1,877 
                 6.50%, 1/1/36  3,530  3,688 
    68,201 
Total U.S. Government & Agency Mortgage-Backed Securities (Cost $74,856)    74,481 
NON-U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES  7.0%     
Commercial Mortgage Backed Securities 5.5%     
Bear Stearns Commercial Mortgage Securities     
         Series 2004-T14, Class A2, CMO, 4.17%, 1/12/41  425  414 
         Series 2002-TOP8, Class A2, CMO, 4.83%, 8/15/38  500  492 
Citigroup/Deutsche Bank Commerical Mortgage     
         Series 2005-C1, Class AJ, CMO, 5.224%, 9/15/20  200  199 
DLJ Commercial Mortgage, Series 1999-CG2, Class A1B, CMO     
         7.30%, 6/10/32  450  478 
GE Capital Commercial Mortgage, Series 2001-1, Class A2, CMO     
         6.531%, 3/15/11  550  584 
Greenwich Capital Commercial Funding, Series 2004-GG1A, Class A2     
         CMO, 3.835%, 6/10/36  303  297 
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A2, CMO     
         4.293%, 8/1/38  325  320 
JP Morgan Chase Commercial Mortgage Securities     
         Series 2001-CIBC, Class A3, CMO, 6.26%, 3/15/33  400  420 
LB-UBS Commercial Mortgage Trust     
         Series 2003-C8, Class A1, CMO, 3.636%, 11/15/27  393  381 
         Series 2004-C2, Class A2, CMO, 3.246%, 3/15/29  265  252 
Morgan Stanley Dean Witter Capital, Series 2002-TOP7, Class A2     
         CMO, 5.98%, 1/15/39  450  470 
    4,307 
Whole Loans-Backed 1.5%     
Bank of America Mortgage Securities     
         Series 2003-L, Class 2A2, CMO, VR, 4.264%, 1/25/34  519  508 
         Series 2004-A, Class 2A2, CMO, VR, 4.119%, 2/25/34  240  236 
         Series 2004-I, Class 3A2, CMO, VR, 4.936%, 10/25/34  113  112 
         Series 2005-J, Class 2A1, CMO, VR, 5.111%, 11/25/35  327    325 
      1,181 
Total Non-U.S. Government Mortgage-Backed Securities (Cost $5,636)      5,488 
ASSET-BACKED SECURITIES 1.8%       
 
Home Equity Loans-Backed 1.8%       
BankBoston Home Equity Loan Trust, Series 1998-1, Class A6       
         6.35%, 2/25/13  168    174 
Chase Funding Mortgage Loan       
         Series 2003-1, Class 1A6, 4.458%, 3/25/14  550    533 
         Series 2002-2, Class 1M1, 5.599%, 9/25/31  199    197 
New Century Home Equity Loan Trust       
         Series 2005-A, Class A6, VR, 4.954%, 8/25/35  350    337 
         Series 2005-A, Class M2, VR, 5.344%, 8/25/35  135    131 
Total Asset-Backed Securities (Cost $1,404)      1,372 
Money Market Funds 3.9%       
T. Rowe Price Government Reserve Investment Fund, 4.30% #†  3,072    3,072 
Total Asset-Backed Securities (Cost $3,072)      3,072 
Total Investments in Securities       
108.0% of Net Assets (Cost $84,968)    $  84,413 

(1)  Denominated in U.S. dollars unless otherwise noted 
#  Seven-day yield 
±  The issuer operates under a congressional charter; its securities are 
  neither issued nor guaranteed by the U.S. government. 
++  All or a portion of this security is pledged to cover margin 
  requirements on futures contracts at January 31, 2006. 
†  Affiliated company – See Note 4. 
ARM  Adjustable Rate Mortgage 
CMO  Collateralized Mortgage Obligation 
IO  Interest-Only security for which the fund receives interest on 
  notional principal (par) 
TBA  To Be Announced purchase commitment; TBAs totaled $6,921 (8.9% 
  of net assets) at January 31, 2006; See Note 2. 
VR  Variable Rate; rate shown is effective rate at period-end 

Open Futures Contracts at January 31, 2006 were as follows:     
($ 000s)           
      Contract 
Unrealized 
 
Expiration 
  Value 
Gain (Loss) 
Short, 7 U.S. Treasury ten year contracts,           
$80 par of 5.50% Government National           
Mortgage Assn. bonds pledged as           
initial margin 
3/06
$ 
(759) 
$ 
3 
Short, 9 U.S. Treasury two year contracts,           
$40 par of 5.50% Government National           
Mortgage Assn. bonds pledged as           
initial margin 
3/06
   (1,844)   
4 
Net payments (receipts) of variation           
margin to date          (6) 
Variation margin receivable (payable)           
on open futures contracts       
$ 
1 

The accompanying notes are an integral part of this Portfolio of Investments.

T. Rowe Price Summit GNMA Fund  
Unaudited 
January 31, 2006 
Notes To Portfolio of Investments   

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

T. Rowe Price Summit Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Summit GNMA Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks a high level of income and maximum credit protection by investing at least 80% of net assets in GNMA securities backed by the full faith and credit of the U.S. government.

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.

Valuation

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. Debt securities are generally traded in the over-the-counter market. Securities with original maturities of one year or more are valued at prices furnished by dealers who make markets in such securities or by an independent pricing service, which considers yield or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Securities with original maturities of less than one year are stated at fair value, which is determined by using a matrix system that establishes a value for each security based on bid-side money market yields.

Investments in mutual funds are valued at the mutual fund’s closing net asset value per share on the day of valuation. Financial futures contracts are valued at closing settlement prices.

Other investments 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 fund’s Board of Directors.

Investment Transactions

Investment transactions are accounted for on the trade date. Unsettled variation margin on futures contracts is reflected as investments in securities.

NOTE 2 - INVESTMENT TRANSACTIONS

Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks or 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.

Futures Contracts

The fund may invest in futures contracts, which provide for the future sale by one party and purchase by another of a specified amount of a specific financial instrument at an agreed upon price, date, time, and place. Risks arise from possible illiquidity of the futures market and from movements in security values and/or interest rates.

TBA Purchase Commitments

The fund may enter into TBA (to be announced) purchase commitments, pursuant to which it agrees to purchase mortgage-backed securities for a fixed unit price, with payment and delivery at a scheduled future date beyond the customary settlement period for that security. With TBA transactions, the particular securities to be delivered are not identified at trade date; however, delivered securities must meet specified terms, including issuer, rate, and mortgage term, and be within industry-accepted “good delivery” standards. The fund generally enters into TBAs with the intention of taking possession of the underlying mortgage securities. Until settlement, the fund maintains cash reserves and liquid assets sufficient to settle its TBAs.

Dollar Rolls

The fund may enter into dollar roll transactions, pursuant to which it sells a mortgage-backed TBA or security and simultaneously purchases a similar, but not identical, TBA with the same issuer, rate, and terms. The fund may execute a “roll” to obtain better underlying mortgage securities or to enhance returns. The fund generally enters into dollar roll transactions with the intention of taking possession of the underlying mortgage securities, but may close a contract prior to settlement or “roll” settlement to a later date if deemed in the best interest of shareholders. Actual mortgages received by the fund may be less favorable than those anticipated.

NOTE 3 - FEDERAL INCOME TAXES

At January 31, 2006, the cost of investments for federal income tax purposes was $84,968,000. Net unrealized loss aggregated $548,000 at period-end, of which $518,000 related to appreciated investments and $1,066,000 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 Funds), open-end management investment companies managed by Price Associates and affiliates of the fund. The T. Rowe Price Reserve 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 Funds pay no investment management fees. During the three months ended January 31, 2006, dividend income from the T. Rowe Price Reserve Funds totaled $65,000, and the value of shares of the T. Rowe Price Reserve Funds held at January 31, 2006 and October 31, 2005 was $3,072,000 and $7,780,000, respectively.

Item 2. 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-Q 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 registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s 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 Summit Funds, Inc.

By  /s/ James S. Riepe 
  James S. Riepe 
  Principal Executive Officer 
 
Date  March 21, 2006 

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/ James S. Riepe 
  James S. Riepe 
  Principal Executive Officer 
 
Date  March 21, 2006 
 
 
 
By  /s/ Joseph A. Carrier 
  Joseph A. Carrier 
  Principal Financial Officer 
 
Date  March 21, 2006