U.S. stocks advanced in the fourth quarter of 2016, lifting major indexes to record highs and resulting in strong full-year gains for many investors. It was the eighth consecutive year of positive returns for the large-cap S&P 500 Index. Stocks rallied following the unexpected November election of Donald Trump as the next U.S. president. Cyclical sectors, especially potential beneficiaries of the president-elect’s stated preference for higher infrastructure spending and lower taxes, performed strongly. On the other hand, investment-grade domestic bond returns were negative due to a sharp increase in U.S. Treasury interest rates. Non-U.S. equities and bonds lagged their U.S. counterparts, as a stronger dollar versus most currencies reduced overseas returns to U.S. investors. Small- and mid-cap stocks outperformed large-caps. As measured by various Russell indexes, value stocks significantly surpassed growth stocks across all market capitalizations, especially among small-caps.

Domestic investment-grade bonds declined, as Treasury interest rates rose across all maturities. The Bloomberg Barclays U.S. Aggregate Bond Index returned -2.98%, the worst quarterly return for investment-grade bonds since the third quarter of 1981. (Bond prices and yields move in opposite directions.) Treasuries fell in anticipation of legislative fiscal stimulus that could lead to higher inflation and larger budget deficits. Also, the Federal Reserve raised short-term interest rates in mid-December, and the Fed has projected three rate increases in 2017. Municipal securities fell as interest rates rose after the election; losses were exacerbated by significant cash flows out of the muni market. Investment-grade corporate bonds also declined as yields rose. High yield bonds, which are less sensitive to interest rate movements, bucked the negative trend, helped by strength among energy sector issuers.

Developed non-U.S. equity markets edged lower in U.S. dollar terms―significantly underperforming U.S. shares―as returns to U.S. investors were hurt by a stronger dollar versus major currencies. The MSCI EAFE Index, which measures the performance of stocks in Europe, Australasia, and the Far East, returned -0.68%. Most developed Asian markets declined. Japanese stocks performed well in local terms but edged lower in dollar terms due to a 13% gain in the greenback versus the yen. European markets were widely mixed. Italian shares rose almost 11%, as the government approved a 20 billion euro bailout to help its ailing lenders saddled with significant nonperforming loans. On the other hand, Belgian shares dropped more than 11% in dollar terms, as the euro sagged 6% versus the dollar.

Emerging equity markets generally fared worse than developed equity markets, in part because of currency weakness. The MSCI Emerging Markets Index returned -4.08%. In emerging Europe, however, Russian equities surged almost 19%, as the ruble strengthened and the government agreed to cooperate with OPEC in cutting production to support oil prices. Trump’s election victory also raised expectations for U.S.-Russia relations to improve after his inauguration. In Turkey, which remains in a state of emergency following a failed coup in July, stocks tumbled in dollar terms as the lira plunged almost 15%. Most emerging Asian markets declined. The Chinese yuan depreciated to an eight-year low against the dollar amid uncertainty about Trump’s trade policies towards China. Latin American equity markets were mixed. Shares in Brazil, Peru, and Chile rose more than 2%, but Mexican shares fell nearly 8% in dollar terms. Despite two interest rate increases by the Mexican central bank during the quarter, the peso declined 6% versus the dollar amid concerns that U.S.-Mexican trade and relations would suffer during the Trump presidency

Bonds in developed non-U.S. markets fell sharply in U.S. dollar terms. This was driven by a combination of the U.S. dollar appreciating sharply against most major currencies, and sovereign bond yields rising in sync with U.S. Treasury yields. In the eurozone, government bond yields hit multi-month highs, with the German 10-year yield reaching 0.39% at one point. Toward the end of the quarter, the move was tempered by the European Central Bank's announcement that its asset purchase program will be extended until at least the end of 2017, but starting in April, the pace of buying will be reduced to 60 billion euros per month from 80 billion

Bonds in emerging markets also declined in dollar terms but generally held up better than sovereign debt in developed non-U.S. markets. Dollar-denominated bonds outperformed bonds denominated in local currencies. Turkey was one of the worst performers amid heightened political tensions and concern that a faster pace of U.S. interest rate increases in 2017 will make it more difficult for the country to finance its current account deficit. In contrast, Brazil's bonds performed well as the country’s central bank cut interest rates twice during the quarter.

In this environment, the majority of the portfolios had positive absolute returns for the quarter. The Growth Pool and the Moderate Growth Pool had the largest positive absolute returns, while the Gift Preservation Pool and the Global Equity Pool had negative absolute returns for the quarter.

T. Rowe Price Gift Preservation Pool Performance — December 31, 2016

The Gift Preservation Pool returned -0.42%, compared with 0.08% for its benchmark. The Short Term Bond Fund, the largest component of the pool, had a negative absolute return and accounted for almost all of the pool’s underperformance.

GIFT PRESERVATION POOL
PERFORMANCE AS OF December 31, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Gift Preservation Pool1 -0.42% 0.71% 0.40% 1.57%
Underlying Funds Weight -0.41% 1.90% 1.20% 2.60%
Short Term Bond Fund - I Class5 75.0%
US Treasury Money Fund 25.0% 0.01% 0.02% 0.01% 0.58%
WBGPP Weighted Benchmark2 0.08% 0.27% 0.09% 0.79%


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 — December 31, 2016

The Diversified Income Pool returned 0.46%, versus -0.38% for its weighted benchmark. The Equity Income Fund gained substantially for the quarter. The Spectrum Income Fund, which is the largest component of the pool, had a negative return in absolute terms.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF December 31, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Diversified Income Pool1 0.46% 9.62% 6.43% 4.95%
Underlying Funds Weight -1.30% 8.18% 4.56% 5.14%
Spectrum Income Fund 60.0%
Equity Income Fund - I Class5 19.0% 7.32% 19.40% 12.76% 5.68%
Balanced Fund - I Class5 19.0% -0.02% 6.11% 8.99% 5.56%
Real Assets Fund - I Class5 2.0% -1.24% 21.14% 2.89% N/A
WBDEP Weighted Benchmark2 -0.38% 6.44% 6.08% 5.12%


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 — December 31, 2016

The Balanced Index Pool had a return of 0.00%, compared with 0.41% for its weighted benchmark. Positive absolute gains came from the Equity Index 500 Fund and the Extended Equity Market Index Fund. The U.S. Enhanced Bond Index Fund, the pool’s largest component, had a negative absolute return in a challenging market for fixed income securities. The International Equity Index Fund also had a negative return for the quarter.

BALANCED INDEX POOL
PERFORMANCE AS OF December 31, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Balanced Index Pool1 0.00% 6.75% 7.41% 4.77%
Underlying Funds Weight -3.21% 2.69% 2.23% 4.35%
U.S. Bond Index Fund 40.0%
Equity Index 500 Fund - I Class5 29.9% 3.81% 11.87% 14.41% 6.71%
Extended Equity Market Index Fund 10.0% 5.82% 15.97% 14.71% 7.88%
International Equity Index Fund 17.1% -1.71% 1.43% 6.23% 0.76%
Real Assets Fund - I Class5 3.0% -1.24% 21.14% 2.89% N/A
WBBAX Weighted Benchmark2 0.41% 6.96% 8.37% 5.45%


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 — December 31, 2016

The Moderate Growth Pool posted a return of 0.59%, while its weighted benchmark returned 0.88%. The Equity Income Fund gained for the quarter on an absolute basis, as did the Small-Cap Stock Fund and the Mid-Cap Value Fund. The Emerging Markets Stock Fund and the International Growth and Income Fund both had negative absolute performance.

MODERATE GROWTH POOL
PERFORMANCE AS OF December 31, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Moderate Growth Pool1 0.59% 8.90% 8.82% 5.12%
Underlying Funds Weight -1.30% 8.18% 4.56% 5.14%
Spectrum Income Fund 30.00%
Equity Index 500 Fund - I Class5 5.45% 3.81% 11.87% 14.41% 6.71%
Growth Stock Fund - I Class5 15.20% 0.10% 1.58% 15.21% 7.93%
Equity Income Fund - I Class5 15.20% 7.32% 19.40% 12.76% 5.68%
Mid-Cap Growth Fund - I Class5 2.85% 0.51% 6.45% 14.89% 10.09%
Mid-Cap Value Fund - I Class5 2.85% 7.24% 24.54% 15.92% 8.40%
Small-Cap Stock Fund - I Class5 5.00% 7.45% 18.75% 14.84% 9.14%
International Stock Fund - I Class5 8.55% -4.04% 2.49% 6.49% 2.12%
International Growth & Income Fund - I Class5 8.55% -2.80% 0.76% 5.60% 0.41%
Emerging Markets Stock Fund - I Class5 2.85% -6.81% 12.11% 2.87% 1.48%
Real Assets Fund - I Class5 3.50% -1.24% 21.14% 2.89% N/A
WBMPP Weighted Benchmark2 0.88% 8.14% 9.34% 5.39%


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 — December 31, 2016

The Growth Pool returned 1.47%, against the 2.54% return of its weighted benchmark. In absolute terms, the Small-Cap Stock Fund, the Equity Income Fund, and the Mid-Cap Value Fund had the largest gains for the quarter. The Equity Index 500 Fund also gained in absolute terms. The Emerging Markets Stock Fund and the International Growth and Income Fund underperformed.

GROWTH POOL
PERFORMANCE AS OF December 31, 2016
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Growth Pool1 1.47% 9.41% 10.83% 5.05%
Underlying Funds Weight 3.81% 11.87% 14.41% 6.71%
Equity Index 500 Fund - I Class5 10.20%
Growth Stock Fund - I Class5 20.45% 0.10% 1.58% 15.21% 7.93%
Equity Income Fund - I Class5 20.45% 7.32% 19.40% 12.76% 5.68%
Mid-Cap Growth Fund - I Class5 4.05% 0.51% 6.45% 14.89% 10.09%
Mid-Cap Value Fund - I Class5 4.05% 7.24% 24.54% 15.92% 8.40%
Small-Cap Stock Fund - I Class5 7.35% 7.45% 18.75% 14.84% 9.14%
International Stock Fund - I Class5 12.10% -4.04% 2.49% 6.49% 2.12%
International Growth & Income Fund - I Class5 12.10% -2.80% 0.76% 5.60% 0.41%
Emerging Markets Stock Fund - I Class5 4.25% -6.81% 12.11% 2.87% 1.48%
Real Assets Fund - I Class5 5.00% -1.24% 21.14% 2.89% N/A
WBGRP Weighted Benchmark2 2.54% 10.35% 12.30% 5.41%


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 — December 31, 2016

The Global Equity Pool returned -0.35%, compared with a 1.30% return for its weighted benchmark. The Global Stock Fund, which is the largest component of the pool, detracted from absolute returns for the month, as did the International Growth and Income Fund. The Small-Cap Stock Fund and the Mid-Cap Value Fund, though relatively small components of the pool, had the largest absolute gains.

GLOBAL EQUITY POOL
PERFORMANCE AS OF December 31, 2016
Total Return4
3 Months
1 Year
5 Years3
Since Inception3
6/30/08
T. Rowe Price Global Equity Pool1 -0.35% 7.75% 9.69% 4.07%
Underlying Funds Weight -1.80% 6.02% 13.26% 3.87%
Global Stock Fund 22.30%
International Growth & Income Fund - I Class5 12.35% -2.80% 0.76% 5.60% 1.07%
International Equity Index Fund 16.60% -1.71% 1.43% 6.23% 0.99%
Emerging Markets Stock Fund - I Class5 9.95% -6.81% 12.11% 2.87% -0.68%
Equity Index 500 Fund - I Class5 14.50% 3.81% 11.87% 14.41% 8.93%
Value Fund - I Class5 11.15% 4.37% 11.12% 15.23% 9.36%
Mid-Cap Growth Fund - I Class5 2.40% 0.51% 6.45% 14.89% 10.74%
Mid-Cap Value Fund - I Class5 2.40% 7.24% 24.54% 15.92% 10.97%
Small-Cap Stock Fund - I Class5 3.35% 7.45% 18.75% 14.84% 12.45%
Real Assets Fund - I Class5 5.00% -1.24% 21.14% 2.89% N/A
WBGEP Weighted Benchmark2 1.30% 8.48% 9.96% 4.80%


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.