Quarterly Pool Performance Update
One of the main advantages of investing in a donor-advised fund is the potential opportunity for your account assets to grow tax-free over time. So it's important to take a close look at your pool's investment performance to be sure the returns are competitive.
Major U.S. stock market indexes advanced sharply in the first quarter of 2012, as the eurozone backed away from the point of collapse, the U.S. economy strengthened and central banks pledged to step in and support global economic growth. Investors diverted assets from relatively safe but low-yielding bonds into riskier investments following last year's turmoil. Strong corporate earnings reports also bolstered U.S. equity returns.
Mid-cap shares narrowly outperformed their larger and smaller peers, and growth stocks outperformed value stocks across all market capitalizations. Most S&P 500 sectors advanced, led by financials and information technology. Consumer discretionary shares also did well, outperforming the broad market, while the industrials and materials sectors narrowly lagged.
Among fixed income securities, investment-grade corporate bonds produced solid gains. Municipal securities also did well, extending last year's tremendous performance. Asset- and agency mortgage-backed securities edged higher, but Treasuries declined as long- and intermediate-term interest rates increased. High yield securities strongly outperformed investment-grade issues.
Developed non-U.S. equities produced strong returns but narrowly lagged their domestic counterparts. Emerging market stocks initially rallied but slid in March amid slowing global economic growth and currency weakness. On the fixed income side, developed market bonds generally produced gains, though performance varied. Japanese bonds declined moderately in U.S. dollar terms, while European bonds generally rose outside of Spain. Emerging market debt significantly outperformed, however, as yield-seeking investors embraced risk.
In this investment environment, each of the investment pools posted positive returns, and all but one outpaced their respective benchmarks.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you grant your shares. To request a prospectus or summary prospectus for any of the funds in which the pools invest, call 1-800-564-1597. Each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
T. Rowe Price Gift Preservation Pool Performance — March 31, 2012
The Gift Preservation Pool returned 0.72% versus 0.01% for its weighted benchmark.
Outperformance stemmed from the Short-Term Bond Fund, as central bank policies have led to flat returns for the Summit Cash Reserves Fund.
| GIFT PRESERVATION POOL PERFORMANCE AS OF March 31, 2012 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Gift Preservation Pool1 | 0.72% | 1.16% | 2.67% | 2.73% | |
| Underlying Funds | Weight | 1.14% | 2.23% | 3.99% | 3.77% |
| Short-Term Bond Fund | 75.00% | ||||
| Summit Cash Reserves Fund | 25.00% | 0.00% | 0.01% | 1.33% | 1.83% |
| WBGPP Weighted Benchmark2 | 0.01% | 0.05% | 1.23% | 2.34% | |
1 The current weight 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.
2 Consists of 100% Citigroup 3-Month Treasury Bill Index.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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.
T. Rowe Price Diversified Income Pool Performance — March 31, 2012
The Diversified Income Pool returned 6.36% versus 3.82% for its weighted benchmark.
The pool has exposure to dividend-paying stocks as a means of diversifying its income stream. This positioning proved beneficial for the quarter, as the Spectrum Income Fund contributed significantly to relative performance.
| DIVERSIFIED INCOME POOL PERFORMANCE AS OF March 31, 2012 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Diversified Income Pool1 | 6.36% | 5.35% | 4.46% | 6.02% | |
| Underlying Funds | Weight | 3.97% | 6.03% | 6.22% | 7.16% |
| Spectrum Income Fund | 60.00% | ||||
| Equity Income Fund | 20.00% | 11.23% | 4.51% | 0.92% | 4.71% |
| Balanced Fund | 20.00% | 9.40% | 6.09% | 3.73% | 5.92% |
| WBDEP Weighted Benchmark2 | 3.82% | 7.30% | 4.65% | 5.81% | |
1 The current weights of the underlying funds became effective on August 31, 2004;
also on this date, the Balanced Fund was added to the pool. Performance prior to August 31,
2004, is based on the previously applied allocations of the underlying funds.
2 Consists of 60% Barclays U.S. Aggregate Index, an investment-grade bond benchmark; 20% Russell 1000 Value Index; and 20% combined index portfolio (50% Standard & Poor's 500® Index, 40% Barclays U.S. Aggregate Index, and 10% MSCI EAFE Index).
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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.
T. Rowe Price Balanced Index Pool Performance — March 31, 2012
The Balanced Index Pool returned 7.54% versus 7.55% for its weighted benchmark.
In keeping with its index approach, the portfolio's performance was reflective of market activity, and results were in line with the weighted benchmark minus expenses.
| BALANCED INDEX POOL PERFORMANCE AS OF March 31, 2012 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 |
Since Inception3 (8/31/04)
|
||
|---|---|---|---|---|---|
| T. Rowe Price Balanced Index Pool1 | 7.54% | 5.00% | 3.37% | 5.60% | |
| Underlying Funds | Weight | 0.47% | 7.64% | 6.33% | 5.28% |
| U.S. Bond Index Fund | 40.00% | ||||
| Equity Index 500 Fund | 31.50% | 12.49% | 8.25% | 1.80% | 5.16% |
| Extended Equity Market Index Fund | 10.50% | 14.36% | 1.59% | 3.49% | 8.45% |
| International Equity Index Fund | 18.00% | 11.52% | -6.03% | -3.06% | 5.46% |
| WBBAX Weighted Benchmark2 | 7.55% | 5.45% | 3.76% | 6.16% | |
1 The current weights of the underlying funds became effective
on September 30, 2011. Performance prior to September 30, 2011, is based on the
previously applied allocations of the underlying funds.
2 Consists of 40% Barclays U.S. Aggregate Index, an investment-grade bond benchmark; 31.5% Standard & Poor's 500 Index; 10.5% S&P Completion Index; and 18% FTSE International Limited Developed ex North America IndexTM. "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.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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.
T. Rowe Price Moderate Growth Pool Performance — March 31, 2012
The Moderate Growth Pool returned 10.76% versus 8.62% for its weighted benchmark.
All of the underlying equity funds posted good absolute returns, with the Growth Stock Fund a key contributor to outperformance. The Spectrum Income Fund also added value.
| MODERATE GROWTH POOL PERFORMANCE AS OF March 31, 2012 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Moderate Growth Pool1 | 10.76% | 4.33% | 3.33% | 5.75% | |
| Underlying Funds | Weight | 3.97% | 6.03% | 6.22% | 7.16% |
| Spectrum Income Fund | 30.00% | ||||
| Equity Index 500 Fund | 5.75% | 12.49% | 8.25% | 1.80% | 3.86% |
| Growth Stock Fund | 16.00% | 19.13% | 12.15% | 4.57% | 5.63% |
| Equity Income Fund | 16.00% | 11.23% | 4.51% | 0.92% | 4.71% |
| Mid-Cap Growth Fund | 3.00% | 13.22% | 2.89% | 7.44% | 8.80% |
| Mid-Cap Value Fund | 3.00% | 11.45% | 0.29% | 3.01% | 8.09% |
| Small-Cap Stock Fund | 5.25% | 13.47% | 3.89% | 5.83% | 7.99% |
| International Stock Fund | 9.00% | 13.83% | -2.33% | 0.01% | 5.56% |
| International Growth & Income Fund | 9.00% | 11.89% | -4.84% | -3.11% | 7.00% |
| Emerging Markets Stock Fund | 3.00% | 12.70% | -9.18% | 2.26% | 13.14% |
| WBMPP Weighted Benchmark2 | 8.62% | 5.19% | 2.90% | 5.59% | |
1 The current weights of the underlying funds became effective on
September 30, 2011. Performance prior to September 30, 2011, 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 Consists of 49% Russell 3000 Index, a measure of the performance of the broad U.S. stock market; 30% Barclays U.S. Aggregate Index, an investment-grade bond benchmark; and 21% MSCI EAFE Index, an international stock benchmark.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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.
T. Rowe Price Growth Pool Performance — March 31, 2012
The Growth Pool returned 13.70% versus 12.31% for its weighted benchmark.
All of the underlying funds posted strong positive returns, particularly the Growth Stock Fund, which benefited from the good results growth-oriented market sectors enjoyed during the period. The pool's international holdings also contributed to relative results.
| GROWTH POOL PERFORMANCE AS OF March 31, 2012 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Growth Pool1 | 13.70% | 3.44% | 1.84% | 5.29% | |
| Underlying Funds | Weight | 12.49% | 8.25% | 1.80% | 3.86% |
| Equity Index 500 Fund | 10.75% | ||||
| Growth Stock Fund | 21.50% | 19.13% | 12.15% | 4.57% | 5.63% |
| Equity Income Fund | 21.50% | 11.23% | 4.51% | 0.92% | 4.71% |
| Mid-Cap Growth Fund | 4.25% | 13.22% | 2.89% | 7.44% | 8.80% |
| Mid-Cap Value Fund | 4.25% | 11.45% | 0.29% | 3.01% | 8.09% |
| Small-Cap Stock Fund | 7.75% | 13.47% | 3.89% | 5.83% | 7.99% |
| International Stock Fund | 12.75% | 13.83% | -2.33% | 0.01% | 5.56% |
| International Growth & Income Fund | 12.75% | 11.89% | -4.84% | -3.11% | 7.00% |
| Emerging Markets Stock Fund | 4.50% | 12.70% | -9.18% | 2.26% | 13.14% |
| WBGRP Weighted Benchmark2 | 12.31% | 3.61% | 0.88% | 5.23% | |
1 The current weights of the underlying funds became effective
on September 30, 2011. Performance prior to September 30, 2011, 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 Consists of 70% Russell 3000 Index, a measure of the performance of the broad U.S. stock market, and 30% MSCI EAFE Index, an international stock benchmark.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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.
T. Rowe Price Global Equity Pool Performance — March 31, 2012
The Global Equity Pool returned 13.24% versus 12.02% for its weighted benchmark.
Global Stock Fund, the fund with the largest weighting in the pool, also boasted the best absolute and relative performance for the quarter. All of the underlying funds generated double-digit returns as both U.S. and international stocks rode a wave of investor optimism and solid corporate earnings.
| GLOBAL EQUITY POOL PERFORMANCE AS OF March 31, 2012 |
Total Return3 | |||
| Three Months | One Year |
Since Inception2 (6/30/08)
|
||
|---|---|---|---|---|
| T. Rowe Price Global Equity Pool | 13.24% | -1.38% | 0.03% | |
| Underlying Funds | Weight | 17.28% | -0.30% | -3.67% |
| Global Stock Fund | 23.50% | |||
| International Growth & Income Fund | 13.00% | 11.89% | -4.84% | -1.83% |
| International Equity Index Fund | 17.50% | 11.52% | -6.03% | -2.88% |
| Emerging Markets Stock Fund | 10.50% | 12.70% | -9.18% | -2.11% |
| Equity Index 500 Fund | 15.25% | 12.49% | 8.25% | 4.70% |
| Value Fund | 11.75% | 12.33% | 2.90% | 4.59% |
| Mid-Cap Growth Fund | 2.50% | 13.22% | 2.89% | 8.24% |
| Mid-Cap Value Fund | 2.50% | 11.45% | 0.29% | 7.03% |
| Small-Cap Stock Fund | 3.50% | 13.47% | 3.89% | 12.22% |
| WBGEP Weighted Benchmark1 | 12.02% | -0.19% | 1.00% | |
1 Consists of 100% MSCI ACWI (All Country World Index), a measure
of equity market performance of developed and emerging markets.
2 These figures are annualized.
3 Returns are based on net asset value (NAV) 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.
