U.S. and many global equity markets advanced in the third quarter. In July, global equities rallied amid expectations that major central banks would act to mitigate an expected economic slowdown following the UK’s late-June decision to leave the European Union. In the U.S., equities were also helped by better-than-expected second-quarter earnings—although year-over-year earnings still declined for the fifth consecutive quarter, according to FactSet. While August was a fairly quiet month, world market volatility picked up in September amid concerns that central banks in developed countries were reaching limits in their ability to provide stimulus. Although the Federal Reserve refrained from raising short-term interest rates at its September 20–21 policy meeting, Fed officials noted in their post-meeting statement that “the case for an increase in the federal funds rate has strengthened.” This leads many—including T. Rowe Price Chief U.S. Economist Alan Levenson—to believe that a rate hike is likely by the end of the year. Small-cap stocks strongly outperformed their larger peers for the quarter. As measured by various Russell indexes, growth stocks narrowly surpassed value stocks across all market capitalizations.

Investment-grade domestic bond returns were mixed. The Bloomberg Barclays U.S. Aggregate Bond Index returned 0.46%. Corporate securities performed well, thanks to strong demand. Mortgage-backed securities edged higher, while Treasury and municipal bond prices fell as yields increased across all maturities. (Bond prices and yields move in opposite directions.) High yield bonds significantly outperformed higher-quality bonds—for the quarter and the year-to-date period—as investors continued to seek securities with attractive yields.

Stocks in developed non-U.S. markets outperformed large-cap U.S. shares, as strength in some non-U.S. currencies lifted returns in dollar terms. The MSCI EAFE Index, which measures the performance of mostly large-cap stocks in Europe, Australasia, and the Far East, returned 6.50%. Most developed Asian markets produced strong returns, but shares in Singapore were flat. Japanese shares rose almost 9% in dollar terms. Late in the quarter, the Bank of Japan (BoJ) modified some of its stimulus efforts—one of which is to purchase more exchange-traded funds (ETFs) tracking the TOPIX index. In Europe, most markets advanced, with Austria and Germany producing double-digit gains. In the UK, equities returned about 4% in dollar terms, as a weaker British pound sterling reduced stronger local returns to U.S. investors.

Emerging markets stocks outperformed shares in developed markets. The MSCI Emerging Markets Index returned 9.15%. Asian markets performed best, led by equities in China, Taiwan, and South Korea. Emerging European markets were mixed. Stocks in oil producer Russia climbed about 9% in dollar terms, helped by a stronger ruble and by a late-September OPEC production cut agreement that caused a spike in oil prices. In contrast, Turkish shares dropped more than 5% in the wake of a failed coup attempt in mid-July. In Latin America, Brazilian shares climbed more than 11%, as the Senate voted to remove President Dilma Rousseff from office, leading to hope that a new president would help the economy recover from a deep recession.

Government bonds in developed non-U.S. markets produced positive returns in dollar terms, as the greenback depreciated against some major currencies amid uncertainty about the November elections and the timing of the Fed’s next interest rate increase. In the eurozone, periphery government bonds outperformed as they benefited from yield-seeking investors. Meanwhile, in core countries, the initial move lower in government bond yields reversed later in the quarter, as valuation concerns and worries that central banks were reaching limits in their ability to provide stimulus fueled a sell-off. In Japan, government bonds came under pressure, particularly longterm issues, which sold off as the BoJ shifted its monetary policy framework so that it would aim to keep 10-year yields around 0%. The Bank of England was also in the spotlight as it cut interest rates to an all-time low in August and announced a package of stimulus measures in an effort to cushion the UK economy as it prepares to leave the European Union.

Emerging markets bonds produced gains for U.S. investors, helped by demand for fixed income securities with attractive yields. Dollar-denominated bonds generally fared better than local currency bonds. One of the strongest markets was South Africa, where bonds rallied and the rand strengthened amid an improving economic outlook for the country. In the currency sphere, the Turkish lira came under pressure amid political concerns stemming from July’s failed coup attempt and downgrades from two major credit rating agencies. Also, the Mexican peso fell close to 5% against the U.S. dollar amid concerns that U.S.-Mexican trade and relations would suffer if Donald Trump wins the U.S. presidential election in November.

In this environment, all of the portfolios had positive absolute returns for the quarter, as did all of their component funds. The Global Equity Pool had the largest positive absolute return, while the Gift Preservation Pool, with a slightly positive return, had the smallest.

T. Rowe Price Gift Preservation Pool Performance — September 30, 2016

The Gift Preservation Pool returned 0.21%, compared with 0.07% for its benchmark. The Short Term Bond Fund, the largest component of the pool, had a positive absolute return and accounted for the entirety of the pool’s gain.

GIFT PRESERVATION POOL
PERFORMANCE AS OF September 30, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Gift Preservation Pool1 0.21% 0.85% 0.52% 1.72%
Underlying Funds Weight 0.42% 1.86% 1.36% 2.75%
Short Term Bond Fund - I Class5 75.0%
US Treasury Money Fund 25.0% 0.00% 0.01% 0.01% 0.69%
WBGPP Weighted Benchmark2 0.07% 0.20% 0.08% 0.90%


1 The current weights of the underlying funds became effective on June 28, 2010; also on this date, the Short- Term Bond Fund and Summit Cash Reserves Fund replaced the Short-Term Income Fund. Performance prior to June 28, 2010, is based on the previously applied allocations of the underlying funds. On August 2, 2016 the U.S. Treasury Money Fund replaced the Summit Cash Reserves Fund. Performance prior to August 2, 2016 is based on the previously applied allocations of the underlying funds.

2 The benchmark reflects the performance of a combined portfolio consisting of 80% Citigroup 3-Month Treasury Bill Index and 20% Barclays 1–3 Year Government/Credit Index through June 30, 2008, and the performance of the Citigroup 3-Month Treasury Bill Index from July 1, 2008, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

5 T. Rowe Price Program for Charitable Giving has adopted the policy of converting its investment in a fund to I Class shares of the same fund when the I-Class shares are available. The first conversion to available I Class shares occurred on July 26, 2016. Please note that for the first conversion, the I Class shares incepted prior to the conversion date. The performance figures for each underlying I Class fund have been calculated using the performance data of the prior share class up to the inception date of the I Class and the actual performance results of the I Class since its inception date. Because the I Class of a fund is expected to have lower expenses than the prior share class of the same fund, the I Class performance figures for the periods spanning before its inception date would have been higher had such I Class existed over such periods.

T. Rowe Price Diversified Income Pool Performance — September 30, 2016

The Diversified Income Pool returned 2.98%, versus 1.57% for its weighted benchmark. The Spectrum Income Fund, which is the largest component of the pool, contributed on an absolute basis, with strong contributions also from the Balanced Fund and the Equity Income Fund.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF September 30, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Diversified Income Pool1 2.98% 11.23% 7.61% 5.35%
Underlying Funds Weight 2.48% 10.03% 5.67% 5.61%
Spectrum Income Fund 60.0%
Equity Income Fund - I Class5 19.0% 4.15% 17.60% 13.74% 5.69%
Balanced Fund - I Class5 19.0% 4.21% 10.07% 10.49% 6.15%
Real Assets Fund - I Class5 2.0% 3.06% 24.57% 4.67% N/A
WBDEP Weighted Benchmark2 1.57% 8.52% 7.13% 5.50%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013 when the pool’s current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds. The Balanced Fund was added to the pool on August 31, 2004.

2 The benchmark reflects the performance of a combined portfolio consisting of 60% Barclays U.S. Aggregate Bond Index, 19% Russell 1000 Value Index, 19% Balanced Fund Blended Benchmark (45.5% S&P 500 Index, 35% Barclays U.S. Aggregate Bond Index, and 19.5% MSCI EAFE Index), and 2% in a blended benchmark (70% Russell 3000 Index and 30% MSCI EAFE Index) through December 31, 2013, and the performance of a combined portfolio consisting of 60% Barclays U.S. Aggregate Bond Index, 19% Russell 1000 Value Index, 19% Balanced Fund Blended Benchmark (45.5% S&P 500 Index, 35% Barclays U.S. Aggregate Bond Index, and 19.5% MSCI EAFE Index), and 2% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

5 T. Rowe Price Program for Charitable Giving has adopted the policy of converting its investment in a fund to I Class shares of the same fund when the I-Class shares are available. The first conversion to available I Class shares occurred on July 26, 2016. Please note that for the first conversion, the I Class shares incepted prior to the conversion date. The performance figures for each underlying I Class fund have been calculated using the performance data of the prior share class up to the inception date of the I Class and the actual performance results of the I Class since its inception date. Because the I Class of a fund is expected to have lower expenses than the prior share class of the same fund, the I Class performance figures for the periods spanning before its inception date would have been higher had such I Class existed over such periods.

T. Rowe Price Balanced Index Pool Performance — September 30, 2016

The Balanced Index Pool had a return of 3.13%, compared with 3.38% for its weighted benchmark. The pool’s largest component, the U.S. Bond Index Fund, had a positive absolute return in a favorable market for corporate and mortgage-backed securities. Positive absolute contribution also came from the Extended Equity Market Index Fund.

BALANCED INDEX POOL
PERFORMANCE AS OF September 30, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Balanced Index Pool1 3.13% 9.60% 8.73% 5.28%
Underlying Funds Weight 0.58% 5.45% 3.12% 4.81%
U.S. Bond Index Fund 40.0%
Equity Index 500 Fund - I Class5 29.9% 3.82% 15.31% 16.11% 7.00%
Extended Equity Market Index Fund 10.0% 7.17% 12.88% 16.37% 8.22%
International Equity Index Fund 17.1% 6.32% 6.86% 7.53% 1.91%
Real Assets Fund - I Class5 3.0% 3.06% 24.57% 4.67% N/A
WBBAX Weighted Benchmark2 3.38% 9.95% 9.60% 5.94%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool’s current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds.

2 The benchmark reflects the performance of a combined portfolio consisting of 40% Barclays U.S. Aggregate Bond Index, 29.9% S&P 500 Index, 10% S&P Completion Index, 17.1% FTSE All World Developed ex North America Index, and 3% in a blended benchmark (70% Russell 3000 Index and 30% MSCI EAFE Index) through December 31, 2013, and the performance of a combined portfolio consisting of 40% Barclays U.S. Aggregate Bond Index, 29.9% S&P 500 Index, 10% S&P Completion Index, 17.1% FTSE All World Developed ex North America Index, and 3% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

5 T. Rowe Price Program for Charitable Giving has adopted the policy of converting its investment in a fund to I Class shares of the same fund when the I-Class shares are available. The first conversion to available I Class shares occurred on July 26, 2016. Please note that for the first conversion, the I Class shares incepted prior to the conversion date. The performance figures for each underlying I Class fund have been calculated using the performance data of the prior share class up to the inception date of the I Class and the actual performance results of the I Class since its inception date. Because the I Class of a fund is expected to have lower expenses than the prior share class of the same fund, the I Class performance figures for the periods spanning before its inception date would have been higher had such I Class existed over such periods.

T. Rowe Price Moderate Growth Pool Performance — September 30, 2016

The Moderate Growth Pool posted a return of 4.78%, while its weighted benchmark returned 3.76%. The pool’s largest holding, the Spectrum Income Fund, was well into positive territory for the quarter. The Growth Stock Fund also performed well. The International Stock Fund gained in a strong quarter for non-U.S. markets.

MODERATE GROWTH POOL
PERFORMANCE AS OF September 30, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Moderate Growth Pool1 4.78% 12.16% 10.37% 5.70%
Underlying Funds Weight 2.48% 10.03% 5.67% 5.61%
Spectrum Income Fund 30.00%
Equity Index 500 Fund - I Class5 5.45% 3.82% 15.31% 16.11% 7.00%
Growth Stock Fund - I Class5 15.20% 7.88% 10.25% 17.40% 8.63%
Equity Income Fund - I Class5 15.20% 4.15% 17.60% 13.74% 5.69%
Mid-Cap Growth Fund - I Class5 2.85% 4.26% 11.38% 17.16% 10.62%
Mid-Cap Value Fund - I Class5 2.85% 4.47% 19.85% 16.29% 8.56%
Small-Cap Stock Fund - I Class5 5.00% 6.14% 15.80% 16.77% 9.06%
International Stock Fund - I Class5 8.55% 7.29% 11.18% 8.70% 3.62%
International Growth & Income Fund - I Class5 8.55% 6.93% 5.96% 7.43% 1.91%
Emerging Markets Stock Fund - I Class5 2.85% 8.96% 22.18% 5.39% 4.06%
Real Assets Fund - I Class5 3.50% 3.06% 24.57% 4.67% N/A
WBMPP Weighted Benchmark2 3.76% 11.06% 10.63% 5.89%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool's current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds. The Emerging Markets Stock Fund was added to the pool on June 30, 2008.

2 The benchmark reflects the performance of a combined portfolio consisting of 30% Barclays U.S. Aggregate Bond Index, 49% Russell 3000 Index, and 21% MSCI EAFE Index through December 31, 2013 and the performance of a combined portfolio consisting of 30% Barclays U.S. Aggregate Bond Index, 46.55% Russell 3000 Index, 19.95% MSCI All Country World Index ex-U.S., and 3.5% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

5 T. Rowe Price Program for Charitable Giving has adopted the policy of converting its investment in a fund to I Class shares of the same fund when the I-Class shares are available. The first conversion to available I Class shares occurred on July 26, 2016. Please note that for the first conversion, the I Class shares incepted prior to the conversion date. The performance figures for each underlying I Class fund have been calculated using the performance data of the prior share class up to the inception date of the I Class and the actual performance results of the I Class since its inception date. Because the I Class of a fund is expected to have lower expenses than the prior share class of the same fund, the I Class performance figures for the periods spanning before its inception date would have been higher had such I Class existed over such periods.

T. Rowe Price Growth Pool Performance — September 30 2016

The Growth Pool returned 5.78%, against the 5.19% return of its weighted benchmark. In absolute terms, the Growth Stock Fund, which is one of the largest components of the pool, posted a strongly positive absolute return for the quarter, as did the International Stock Fund in a positive environment for non-U.S. and emerging market stocks.

GROWTH POOL
PERFORMANCE AS OF September 30, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Growth Pool1 5.78% 13.27% 12.59% 5.66%
Underlying Funds Weight 3.82% 15.31% 16.11% 7.00%
Equity Index 500 Fund - I Class5 10.20%
Growth Stock Fund - I Class5 20.45% 7.88% 10.25% 17.40% 8.63%
Equity Income Fund - I Class5 20.45% 4.15% 17.60% 13.74% 5.69%
Mid-Cap Growth Fund - I Class5 4.05% 4.26% 11.38% 17.16% 10.62%
Mid-Cap Value Fund - I Class5 4.05% 4.47% 19.85% 16.29% 8.56%
Small-Cap Stock Fund - I Class5 7.35% 6.14% 15.80% 16.77% 9.06%
International Stock Fund - I Class5 12.10% 7.29% 11.18% 8.70% 3.62%
International Growth & Income Fund - I Class5 12.10% 6.93% 5.96 7.43% 1.91%
Emerging Markets Stock Fund - I Class5 4.25% 8.96% 22.18% 5.39% 4.06%
Real Assets Fund - I Class5 5.00% 3.06% 24.57% 4.67% N/A
WBGRP Weighted Benchmark2 5.19% 13.39% 13.78% 5.93%


1The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool's current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds. The Emerging Markets Stock Fund was added to the pool on June 30, 2008.

2 The benchmark reflects the performance of a combined portfolio consisting of 70.05% Russell 3000 Index and 29.95% MSCI EAFE Index through December 31, 2013 and the performance of a combined portfolio consisting of 66.55% Russell 3000 Index, 28.45% MSCI All Country World Index ex-U.S., and 5% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

5 T. Rowe Price Program for Charitable Giving has adopted the policy of converting its investment in a fund to I Class shares of the same fund when the I-Class shares are available. The first conversion to available I Class shares occurred on July 26, 2016. Please note that for the first conversion, the I Class shares incepted prior to the conversion date. The performance figures for each underlying I Class fund have been calculated using the performance data of the prior share class up to the inception date of the I Class and the actual performance results of the I Class since its inception date. Because the I Class of a fund is expected to have lower expenses than the prior share class of the same fund, the I Class performance figures for the periods spanning before its inception date would have been higher had such I Class existed over such periods.

T. Rowe Price Global Equity Pool Performance — September 30, 2016

The Global Equity Pool returned 6.34%, compared with a 5.43% return for its weighted benchmark. The largest absolute gains came from the Global Stock Fund, which is the largest component of the pool. The Emerging Markets Stock Fund also contributed to absolute gains as Asian stocks regained their footing.

GLOBAL EQUITY POOL
PERFORMANCE AS OF September 30, 2016
Total Return4
3 Months
1 Year
5 Years3
Since Inception3
6/30/08
T. Rowe Price Global Equity Pool1 6.34% 13.81% 11.52% 4.24%
Underlying Funds Weight 9.53% 18.07% 15.37% 4.22%
Global Stock Fund 22.30%
International Growth & Income Fund - I Class5 12.35% 6.93% 5.96% 7.43% 1.46%
International Equity Index Fund 16.60% 6.32% 6.86% 7.53% 1.23%
Emerging Markets Stock Fund - I Class5 9.95% 8.96% 22.18% 5.39% 0.15%
Equity Index 500 Fund - I Class5 14.50% 3.82% 15.31% 16.11% 8.72%
Value Fund - I Class5 11.15% 4.13% 14.67% 16.96% 9.09%
Mid-Cap Growth Fund - I Class5 2.40% 4.26% 11.38% 17.16% 11.01%
Mid-Cap Value Fund - I Class5 2.40% 4.47% 19.85% 16.29% 10.38%
Small-Cap Stock Fund - I Class5 3.35% 6.14% 15.80% 16.77% 11.88%
Real Assets Fund - I Class5 5.00% 3.06% 24.57% 4.67% N/A
WBGEP Weighted Benchmark2 5.43% 12.60% 11.23% 4.79%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool's current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds.

2 The benchmark reflects the performance of a 100% allocation to the MSCI All Country World Index since inception of the portfolio.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

5 T. Rowe Price Program for Charitable Giving has adopted the policy of converting its investment in a fund to I Class shares of the same fund when the I-Class shares are available. The first conversion to available I Class shares occurred on July 26, 2016. Please note that for the first conversion, the I Class shares incepted prior to the conversion date. The performance figures for each underlying I Class fund have been calculated using the performance data of the prior share class up to the inception date of the I Class and the actual performance results of the I Class since its inception date. Because the I Class of a fund is expected to have lower expenses than the prior share class of the same fund, the I Class performance figures for the periods spanning before its inception date would have been higher had such I Class existed over such periods.

Benchmark Information
Barclays 1–3 Year Government/Credit Index is a total return index that incorporates all bonds in the Treasury Bond Index and the Agency Bond Index, as well as U.S. corporate and some foreign debentures and secured notes, with maturities of one to three years.
Barclays U.S. Aggregate Bond Index is an unmanaged index that tracks domestic investment-grade bonds, including corporate, government, and mortgage-backed securities.
Citigroup 3-Month Treasury Bill Index is an unmanaged index that tracks short-term U.S. government debt instruments.
FTSE All World Developed ex North America IndexTM is a broadly diversified stock market index based on the investable market capitalization of predominately larger companies. The index's major markets include the UK, Japan, and developed countries in Europe and the Pacific Rim.
MSCI EAFE Index tracks the performance of stocks of companies in Europe, Australasia, and the Far East (EAFE).
MSCI All Country World Index tracks the equity market performance of global developed and emerging markets.
MSCI All Country World Index ex-U.S. is a market capitalization-weighted index of stocks traded in world markets.
Russell 1000 Value Index tracks the performance of the 1,000 largest companies in the Russell 3000 Index. The Russell 3000 Index tracks the performance of the 3,000 largest U.S. companies, representing approximately 98% of the investable U.S. equity market.
S&P 500 Index tracks the stocks of 500 mostly large U.S. companies.
S&P Completion Index tracks the performance of the U.S. stocks not included in the S&P 500, which are primarily small- and mid-capitalization stocks.

"Standard & Poor's", "S&P®", "S&P 500®", "Standard & Poor's 500", "500", "S&P Completion Index", "S&P Total Market Index", and "S&P TMI" are marks/trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by T. Rowe Price. The product is not sponsored, endorsed, sold, or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the product.

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.