U.S. stocks rose in the fourth quarter as third-quarter corporate earnings were better than initially expected and U.S. economic and employment growth were solid despite tepid or slowing growth in other parts of the world. The Federal Reserve made its first interest rate hike since 2006, raising the federal funds target rate range by 0.25%, but this widely telegraphed move did not derail the broad equity market, nor did continued commodity price weakness. Against this backdrop, large-cap shares significantly outperformed small- and mid-caps. As measured by various Russell indexes, growth stocks outperformed value stocks across all market capitalizations.

Investors had begun selling shorter-term Treasuries in advance of the Federal Reserve’s December rate increase. The yield on the two-year Treasury note increased by more than 0.40% over the course of the quarter. (Bond prices and yields move in opposite directions.) Yields on longer-term Treasuries climbed more moderately, resulting in a flatter Treasury yield curve. The yield on the 10-year Treasury note increased to 2.27% from 2.06% during the quarter.

Commodity prices continued to fall, which weighed significantly on high yield bonds, where the energy and metals/mining sectors account for roughly one-fifth of the U.S. market. Losses in the U.S. investment-grade corporate bond market were more modest as investor demand absorbed relatively high levels of new supply. Investment-grade corporates also benefited from their lower exposure to commodities-related sectors. Within the investment-grade universe, investors exhibited a preference for debt with higher credit ratings. The financials sector was one of most resilient areas of the investment-grade corporate market along with technology, media, and telecommunications issues.

Stocks in developed non-U.S. markets produced gains but lagged large-cap U.S. shares. Asian markets generated strong gains, with Japanese shares rising more than 9% in dollar terms, as revised third-quarter economic data showed that Japan avoided another recession. In the eurozone, stock returns to U.S. investors were smaller, as a stronger dollar versus the euro reduced returns in dollar terms. Eurozone economic growth remained sluggish, inflation remained low, and investors were disappointed that the European Central Bank’s latest stimulus measures, which were announced in early December, were not as aggressive as expected.

Stocks in emerging markets lagged developed non-U.S. equity markets. Asian emerging markets outperformed other regions, with Indonesia among the top performers. Chinese shares also rose, especially the A shares market for domestic investors. Most Latin American markets lost ground in dollar terms, while in emerging Europe, equities fell moderately, with Greece, Poland, and the Czech Republic among the worst decliners.

Government bonds in developed non-U.S. markets sank in U.S. dollar terms during the period, driven by the dollar’s appreciation against most major currencies. U.S. dollar-denominated emerging markets bonds produced gains in the fourth quarter, outperforming local-currency issues. Most developing markets' currencies declined versus the dollar in anticipation of the Fed’s mid-December rate increase, but some central banks raised their own interest rates in hopes of bolstering their currencies. Brazilian bonds were among the worst performers in the emerging markets universe, as many investment-grade portfolios eliminated their exposure to Brazilian debt.

In this environment, all but one of the portfolios yielded positive absolute results for the quarter. The Global Equity Pool was the strongest performing portfolio, and the Gift Preservation Pool was the weakest.

T. Rowe Price Gift Preservation Pool Performance — December 31, 2015

The Gift Preservation Pool returned -0.28%, compared with 0.01% for its benchmark. The return was owed almost entirely to the Short Term Bond Fund, which had a modestly negative absolute return reflecting subdued performance among investment grade corporate bonds and pressure on Treasuries.

GIFT PRESERVATION POOL
PERFORMANCE AS OF December 31, 2015
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Gift Preservation Pool1 -0.28% 0.00% 0.38% 1.91%
Underlying Funds Weight -0.25% 0.60% 1.16% 2.87%
Short-Term Bond Fund 75.00%
Summit Cash Reserves Fund 25.00% 0.00% 0.01% 0.01% 1.25%
WBGPP Weighted Benchmark2 0.01% 0.03% 0.05% 1.22%


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.

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.

T. Rowe Price Diversified Income Pool Performance — December 31, 2015

The Diversified Income Pool returned 1.93%, versus 1.57% for its weighted benchmark. All components of the pool had positive absolute returns for the period. The strongest absolute returns were from the Equity Income Fund, with the Balanced Fund also producing a solidly positive absolute result. The pool’s largest component, the Spectrum Income Fund, produced a more modest positive absolute return reflecting its substantial exposure to bonds. The Real Assets Fund, which is the pool’s smallest component, was also positive.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF December 31, 2015
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Diversified Income Pool1 1.93% -3.11% 4.95% 5.08%
Underlying Funds Weight 0.38% -2.02% 3.77% 5.16%
Spectrum Income Fund 60.00%
Equity Income Fund 19.00% 5.67% -6.66% 8.67% 5.65%
Balanced Fund 19.00% 3.71% 0.65% 7.90% 6.30%
Real Assets Fund 2.00% 1.56% -14.69% -3.83% N/A
WBDEP Weighted Benchmark2 1.57% -0.07% 5.92% 5.40%


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.

T. Rowe Price Balanced Index Pool Performance — December 31, 2015

The Balanced Index Pool had a return of 2.67%, compared with 3.22% for its weighted benchmark. Only the pool’s largest component, the U.S. Bond Enhanced Index Fund, had a negative absolute return. As U.S. stocks rose in the fourth quarter the Equity Index 500 Fund, which is also a major component of the pool, had a strongly positive absolute return. Smaller equity components—the Extended Equity Market Index Fund and the International Equity Index Fund—were also firmly in positive absolute territory. More modestly positive returns came from the Real Assets Fund, the pool's smallest component.

BALANCED INDEX POOL
PERFORMANCE AS OF December 31, 2015
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Balanced Index Pool1 2.67% -0.79% 6.25% 5.22%
Underlying Funds Weight -0.62% 0.30% 3.15% 4.47%
U.S. Bond Enhanced Index Fund 40.00%
Equity Index 500 Fund 29.90% 6.96% 1.11% 12.27% 7.04%
Extended Equity Market Index Fund 10.00% 3.01% -3.29% 10.55% 7.86%
International Equity Index Fund 17.10% 3.55% -0.74% 3.13% 2.99%
Real Assets Fund 3.00% 1.56% -14.69% -3.83% N/A
WBBAX Weighted Benchmark2 3.22% 0.50% 7.29% 5.97%


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.

T. Rowe Price Moderate Growth Pool Performance — December 31, 2015

The Moderate Growth Pool posted a return of 3.60%, while its weighted benchmark returned 3.61%. All components of the pool were positive. The pool's largest holding, the Spectrum Income Fund, while yielding a positive absolute return, was the weakest within the pool in a challenging environment for fixed income assets. The strongest absolute returns came from the Growth Stock Fund, the Equity Index 500 Fund and the Equity Income Fund, reflecting late-year gains among U.S. stocks. Non-US developed equities, including the International Stock Fund and the International Growth and Income Fund, were more modestly positive. Though a small component of the pool, the Mid-Cap Growth Fund was among its stronger performers in absolute terms. The Emerging Markets Stock Fund was only modestly positive as emerging market equities lagged developed market equities.

MODERATE GROWTH POOL
PERFORMANCE AS OF December 31, 2015
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Moderate Growth Pool1 3.60% -1.68% 6.61% 5.59%
Underlying Funds Weight 0.38% -2.02% 3.77% 5.16%
Spectrum Income Fund 30.00%
Equity Index 500 Fund 5.45% 6.96% 1.11% 12.27% 7.04%
Growth Stock Fund 15.20% 8.60% 10.85% 14.61% 9.18%
Equity Income Fund 15.20% 5.67% -6.66% 8.67% 5.65%
Mid-Cap Growth Fund 2.85% 5.16% 6.56% 13.19% 10.12%
Mid-Cap Value Fund 2.85% 3.21% -3.41% 9.86% 8.02%
Small-Cap Stock Fund 5.00% 4.73% -3.18% 10.93% 8.57%
International Stock Fund 8.55% 4.10% -0.77% 3.20% 3.67%
International Growth & Income Fund 2.13% -3.13% 3.02% 3.98% 2.98%
Emerging Markets Stock Fund 2.85% 1.48% -11.49% -3.58% 3.15%
Real Assets Fund 3.50% 1.56% -14.69% -3.83% N/A
WBMPP Weighted Benchmark2 3.61% -0.52% 7.83% 5.90%


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.

T. Rowe Price Growth Pool Performance — December 31, 2015

The Growth Pool returned 5.05%, against the 5.37% return of its weighted benchmark. All components of the pool were positive, with one of its largest holdings, the Growth Stock Fund, the strongest in absolute terms. Further strongly positive absolute returns came from the Equity Index 500 Fund, the Equity Income Fund and the Mid-Cap Growth Fund. While still positive, weaker absolute returns came from international holdings, including the International Growth and Income Fund and the Emerging Markets Stock Fund. The Real Assets Fund, while making up only a small portion of the pool, had one of the weakest absolute returns for the quarter.

GROWTH POOL
PERFORMANCE AS OF December 31, 2015
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Growth Pool1 5.05% -1.46% 7.95% 5.69%
Underlying Funds Weight 6.96% 1.11% 12.27% 7.04%
Equity Index 500 Fund 10.20%
Growth Stock Fund 20.45% 8.60% 10.85% 14.61% 9.18%
Equity Income Fund 20.45% 5.67% -6.66% 8.67% 5.65%
Mid-Cap Growth Fund 4.05% 5.16% 6.56% 13.19% 10.12%
Mid-Cap Value Fund 4.05% 3.21% -3.41% 9.86% 8.02%
Small-Cap Stock Fund 7.35% 4.73% -3.18% 10.93% 8.57%
International Stock Fund 12.10% 4.10% -0.77% 3.20% 3.67%
International Growth & Income Fund 12.10% 2.13% -3.13% 3.02% 2.98%
Emerging Markets Stock Fund 4.25% 1.48% -11.49% -3.58% 3.15%
Real Assets Fund 5.00% 1.56% -14.69% -3.83% N/A
WBGRP Weighted Benchmark2 5.37% -1.25% 9.58% 6.08%


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.

T. Rowe Price Global Equity Pool Performance — December 31, 2015

The Global Equity Pool returned 5.25%, compared with a 5.15% return for its weighted benchmark. All components of the pool had positive absolute returns for the quarter. By far the strongest component of the pool in absolute terms was also its largest, the Global Stock Fund. Other sizeable components produced strongly positive absolute returns, including the Value Fund and the Equity Index 500 Fund. The Mid-Cap Growth Fund, Mid-Cap Value Fund, and International Equity Index Fund all yielded positive absolute returns, reflecting a solid quarter for stocks, while the International Growth and Income Fund and Real Assets Fund, though still positive, were more subdued. The weakest performance in absolute terms came from the Emerging Markets Stock Fund, reflecting a difficult quarter for Brazil and Russia that offset gains in Asia.

GLOBAL EQUITY POOL
PERFORMANCE AS OF December 31, 2015
Total Return4
3 Months
1 Year
5 Years3
Since Inception3
6/30/08
T. Rowe Price Global Equity Pool1 5.25% -1.44% 6.08% 3.59%
Underlying Funds Weight 9.36% 7.09% 9.23% 3.59%
Global Stock Fund 22.30%
International Growth & Income Fund 12.35% 2.13% -3.13% 3.02% 1.09%
International Equity Index Fund 16.60% 3.55% -0.74% 3.13% 0.93%
Emerging Markets Stock Fund 9.95% 1.48% -11.49% -3.58% -2.286%
Equity Index 500 Fund 14.50% 6.96% 1.11% 12.27% 8.54%
Value Fund 11.15% 7.64% -1.74% 12.36% 9.12%
Mid-Cap Growth Fund 2.40% 5.16% 6.56% 13.19% 11.32%
Mid-Cap Value Fund 2.40% 3.21% -3.41% 9.86% 9.28%
Small-Cap Stock Fund 3.35% 4.73% -3.18% 10.93% 11.63%
Real Assets Fund 5.00% 1.56% -14.69% -3.83% N/A
WBGEP Weighted Benchmark2 5.15% -1.84% 6.66% 4.32%


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.

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.