U.S. stocks climbed in the third quarter, lifting major domestic stock indexes to new all-time highs. Strong corporate earnings reports and economic growth-boosted by last year's tax reform legislation-propelled the market's advance. The U.S.-China trade dispute continued, with each country threatening and implementing tariffs on various products, but not to the detriment of U.S. equities. On the other hand, the U.S. reached new trade deals with Mexico and with Canada that will replace the North American Free Trade Agreement. Near the end of September, Trump signed a new trade agreement with South Korea.

Large-cap shares easily outpaced their smaller peers. The large-cap S&P 500 Index returned 7.71% versus 3.86% for the S&P MidCap 400 Index and 3.58% for the small-cap Russell 2000 Index. As measured by various Russell indexes, growth stocks outperformed value stocks across all market capitalizations.

In the large-cap universe, as measured by the S&P 500, all sectors produced positive returns. Health care stocks did best, but industrials and business services, telecommunication services, and information technology shares also outpaced the broad market. Materials and real estate stocks were little changed. Energy stocks were also fairly flat, even though Brent oil prices reached four-year highs ahead of a November 4 deadline for U.S. allies to stop purchasing Iranian oil before sanctions take effect.

Domestic investment-grade bonds produced mixed returns in the third quarter, as interest rates increased across the Treasury yield curve and the Federal Reserve raised short-term rates in late September, which was widely expected. The Bloomberg Barclays U.S. Aggregate Bond Index returned 0.02%. Treasuries declined, while mortgage-backed and municipal securities edged lower. Investment-grade corporate bonds produced decent gains. High yield issues strongly outperformed higher-quality bonds, helped by their lower interest rate sensitivity and by favorable corporate fundamentals.

Stocks in developed non-U.S. markets produced gains but substantially lagged U.S. shares, hindered in part by a stronger dollar versus various currencies. The MSCI EAFE Index returned 1.42%. In U.S. dollar terms, developed Asian markets were mixed, but Japanese shares led the region with a gain of almost 4%. Economic data showed that Japan's economy expanded in the second quarter—reversing course from a first-quarter contraction—thanks in part to a pickup in household and business spending. European markets were also mixed, with Switzerland, Sweden, and oil producer Norway producing strong returns. In contrast, Italian shares fell more than 4%, as sovereign bond yields climbed due to expectations for increased government spending and a widening budget deficit. UK shares sagged close to 2%, due in part to continued uncertainty about the terms of its withdrawal from the European Union, which is scheduled to take place at the end of March 2019.

Returns in emerging equity markets varied widely, as currencies in some developing markets remained under pressure. The MSCI Emerging Markets Index returned -0.95%. In Asia, Chinese equities lost 7% as U.S.-China trade tensions intensified. Indian stocks fell to a lesser extent, as several defaults by a non-bank financial lender in September hurt investor sentiment. On the plus side, Thailand's market soared almost 14%, supported by strong economic growth.

In emerging Europe, Russian shares advanced more than 6% amid rising oil prices, whereas stocks in Turkey plunged more than 20% due in part to lira weakness. In Latin America, Mexican shares rose almost 7%, as political uncertainty dissipated following the presidential election and as the country reached a new trade agreement with the U.S. Brazilian shares rose 6% despite heightened political uncertainty ahead of October's elections. Argentine stocks fell over 9%, even though the government reached an agreement with the International Monetary Fund for a bailout package in exchange for austerity measures.

Bonds in developed non-U.S. markets declined in dollar terms, as rising interest rates in some countries weighed on bond prices and a stronger greenback against some major currencies reduced returns to U.S. investors. In the eurozone, political concerns kept Italian government bonds under pressure during the quarter. On the monetary policy front, the European Central Bank reiterated plans to end its bond-buying program at the end of 2018 and to keep rates on hold “at least through the summer of 2019.” In the UK, the central bank raised short-term rates in early August for the first time this year, driving bond yields higher, while the British pound fell more than 1% versus the dollar amid ongoing Brexit-related concerns. In Japan, the yield curve steepened in the wake of the Bank of Japan's late-July announcement that it would allow the 10-year government bond yield target to fluctuate in a wider range.

Emerging markets bonds were mixed in the third quarter. Dollar-denominated emerging markets debt produced solid returns, but local-currency bonds declined due to weakness among key currencies, such as the Turkish lira, the Indian rupee, the Brazilian real, and the South African rand. Central banks in various countries, such as Russia, were forced to raise short-term interest rates in an attempt to shore up their currencies or to keep inflation from rising.

In this environment, absolute portfolio performance was positive, with all components gaining for the quarter. The Growth Pool and the Balanced Index Pool had the largest gains in absolute returns.

T. Rowe Price Gift Preservation Pool Performance — September 30, 2018

The Gift Preservation Pool returned 0.28%, compared with 0.50% for its benchmark. The US Treasury Money Fund had a positive return in absolute terms.

GIFT PRESERVATION POOL
PERFORMANCE AS OF September 30, 2018
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Gift Preservation Pool 2 0.28% 0.35% 0.40% 1.20% 2.00%
Underlying Funds Weight 0.39% 0.65% 1.10% 2.16% 3.11%
Short Term Bond Fund - I Class1 75.0%
US Treasury Money Fund1 25.0% 0.42% 1.29% 0.34% 0.19% 1.22%
WBGPP Weighted Benchmark 0.50% 1.57% 0.49% 0.32% 1.92%


1 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.

2 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.

T. Rowe Price Diversified Income Pool Performance — September 30, 2018

The Diversified Income Pool returned 1.51%, versus 1.92% for its weighted benchmark. The Spectrum Income Fund, the pool's largest component, gained for the quarter. The Real Assets Fund, the pool's smallest component, declined in absolute terms.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF September 30, 2018
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Diversified Income Pool 1.51% 2.67% 4.98% 6.51% 5.65%
Underlying Funds Weight 0.63% -0.07% 3.47% 5.56% 5.82%
Spectrum Income Fund 60.0%
Equity Income Fund - I Class1 19.0% 4.05% 9.23% 9.43% 9.40% 7.41%
Balanced Fund - I Class1 19.0% 2.51% 7.28% 8.05% 8.73% 6.20%
Real Assets Fund - I Class1 2.00% -0.94% 4.30% 3.14% N/A N/A
WBDEP Weighted Benchmark 1.92% 2.85% 5.15% 6.09% 5.36%


1 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, 2018

The Balanced Index Pool had a return of 2.75%, compared with 3.09% for its weighted benchmark. The pool's largest absolute gains came from the Equity Index 500 Fund and the Extended Equity Market Index Fund. The Real Assets Fund, its smallest component, declined in absolute terms.

BALANCED INDEX POOL
PERFORMANCE AS OF September 30, 2018
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (8/31/04)
T. Rowe Price Balanced Index Pool 2.75% 6.24% 6.50% 7.23% 6.26%
Underlying Funds Weight -0.10% -1.24% 2.19% 3.80% 3.74%
U.S. Bond Index Fund 40.0%
Equity Index 500 Fund - I Class1 29.9% 7.69% 17.83% 13.77% 11.75% 9.15%
Extended Equity Market Index Fund 10.0% 4.08% 15.38% 11.22% 12.30% 10.69%
International Equity Index Fund 17.1% 1.28% 2.36% 4.36% 5.24% 5.94%
Real Assets Fund - I Class1 3.0% -0.94% 4.30% 3.14% N/A N/A
WBBAX Weighted Benchmark 3.09% 7.19% 7.40% 8.01% 7.01%


1 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, 2018

The Moderate Growth Pool posted a return of 2.39%, while its weighted benchmark returned 3.62%. The Spectrum Income Fund, the pool's largest component, had a positive absolute return for the quarter. The Emerging Markets Stock Fund and the Real Assets Fund both declined.

MODERATE GROWTH POOL
PERFORMANCE AS OF September 30, 2018
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Moderate Growth Pool 2.39% 6.80% 7.57% 8.52% 5.68%
Underlying Funds Weight 0.63% -0.07% 3.47% 5.56% 5.82%
Spectrum Income Fund 30.00%
Equity Index 500 Fund - I Class1 5.45% 7.69% 17.83% 13.77% 11.75% 5.84%
Growth Stock Fund - I Class1 15.20% 4.89% 22.41% 16.22% 14.79% 7.56%
Equity Income Fund - I Class1 15.20% 4.05% 9.23% 9.43% 9.40% 7.41%
Mid-Cap Growth Fund - I Class1 2.85% 7.45% 17.93% 14.34% 14.54% 9.99%
Mid-Cap Value Fund - I Class1 2.85% 1.27% 10.11% 11.18% 11.75% 11.14%
Small-Cap Stock Fund - I Class1 5.00% 6.30% 19.59% 12.24% 14.04% 10.11%
International Stock Fund - I Class1 8.55% 0.22% 1.64% 5.83% 6.90% 3.72%
International Value Equity Fund - I Class1 8.55% 0.42% -3.51% 2.64% 4.59% 4.80%
Emerging Markets Stock Fund - I Class1 2.85% -4.21% -3.24% 5.64% 5.70% 8.11%
Real Assets Fund - I Class1 3.50% -0.94% 4.30% 3.14% N/A N/A
WBMPP Weighted Benchmark 3.62% 8.43% 8.24% 8.52% 5.87%


1 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, 2018

The Growth Pool returned 3.19%, against the 5.18% return of its weighted benchmark. In absolute terms, the Mid-Cap Growth Fund and the Small-Cap Stock Fund had among the strongest absolute returns for the period. The Emerging Markets Fund and the Real Assets Fund detracted from absolute returns.

GROWTH POOL
PERFORMANCE AS OF September 30, 2018
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Growth Pool 3.19% 10.01% 9.52% 9.75% 5.98%
Underlying Funds Weight 7.69% 17.83% 13.77% 11.75% 5.84%
Equity Index 500 Fund - I Class1 10.20%
Growth Stock Fund - I Class1 20.45% 4.89% 22.41% 16.22% 14.79% 7.56%
Equity Income Fund - I Class1 20.45% 4.05% 9.23% 9.43% 9.40% 7.41%
Mid-Cap Growth Fund - I Class1 4.05% 7.45% 17.93% 14.34% 14.54% 9.99%
Mid-Cap Value Fund - I Class1 4.05% 1.27% 10.11% 11.18% 11.75% 11.14%
Small-Cap Stock Fund - I Class1 7.35% 6.30% 19.59% 12.24% 14.04% 10.11%
International Stock Fund - I Class1 12.10% 0.22% 1.64% 5.83% 6.90% 3.72%
International Value Equity Fund - I Class1 12.10% 0.42% -3.51% 2.64% 4.59% 4.80%
Emerging Markets Stock Fund - I Class1 4.25% -4.21% -3.24% 5.64% 5.70% 8.11%
Real Assets Fund - I Class1 5.00% -0.94% 4.30% 3.14% N/A N/A
WBGRP Weighted Benchmark 5.18% 12.72% 10.79% 10.23% 5.64%


1 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, 2018

The Global Equity Pool returned 2.27%, compared with a 4.40% return for its weighted benchmark. The Equity Index 500 Fund and the Mid-Cap Growth Fund had the strongest absolute returns for the period. The Emerging Markets Stock Fund and the Real Assets Fund declined.

GLOBAL EQUITY POOL
PERFORMANCE AS OF September 30, 2018
Total Return Annualized
3 Months
1 Year
5 Years
Since Inception (6/30/08)
T. Rowe Price Global Equity Pool 2.27% 8.35% 8.68% 5.92%
Underlying Funds Weight 3.06% 19.84% 14.34% 7.25%
Global Stock Fund - I Class1 22.30%
International Value Equity Fund - I Class1 12.35% 0.42% -3.51% 2.64% 2.29%
International Equity Index Fund 16.60% 1.28% 2.36% 4.36% 2.97%
Emerging Markets Stock Fund - I Class1 9.95% -4.21% -3.24% 5.64% 1.92%
Equity Index 500 Fund - I Class1 14.50% 7.69% 17.83% 13.77% 10.50%
Value Fund - I Class1 11.15% 3.42% 7.41% 10.57% 9.69%
Mid-Cap Growth Fund - I Class1 2.40% 7.45% 17.93% 14.34% 12.55%
Mid-Cap Value Fund - I Class1 2.40% 1.27% 10.11% 11.18% 10.70%
Small-Cap Stock Fund - I Class1 3.35% 6.30% 19.59% 12.24% 13.37%
Real Assets Fund - I Class1 5.00% -0.94% 4.30% 3.14% N/A
WBGEP Weighted Benchmark 4.40% 10.35% 9.25% 6.66%


1 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.
Bloomberg 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.