Major U.S. stock indexes rose, and many reached all-time highs, during the second quarter of 2017. While volatility was generally low, the market continued the rally sparked by the November 2016 presidential election of Donald Trump amid hopes for tax cuts and increased infrastructure spending—although neither has yet to come to fruition. Strong first-quarter corporate earnings and Trump administration moves to reduce regulations in various industries were supportive, however. The market managed to advance despite mediocre first-quarter economic growth, a mid-June interest rate increase from the Federal Reserve, Trump's domestic political controversies, Republicans' failed attempts to repeal the Affordable Care Act, and increased geopolitical tensions. Large-cap shares narrowly outperformed their smaller peers. As measured by various Russell indexes, growth stocks surpassed value stocks across all market capitalizations.

U.S. bonds posted positive returns in the second quarter. The Bloomberg Barclays U.S. Aggregate Bond Index, which measures the performance of domestic investment-grade taxable bonds, returned 1.45%. Although the Fed raised short-term interest rates in June, longer-term Treasury interest rates declined—thus flattening the yield curve—as the rate of inflation remained low, economic growth remained lackluster, and new fiscal stimulus measures failed to materialize. In the taxable investment-grade bond universe, long-term Treasuries and corporate bonds did best. Mortgage and asset-backed securities lagged with mild gains. Municipal bonds surpassed taxable bonds, helped by steady demand and limited supply. High yield issues generally outperformed higher-quality bonds, as investors continued to seek attractive yields.

Stocks in developed non-U.S. markets outperformed U.S. shares, as returns to U.S. investors were boosted by a weaker dollar versus most major non-U.S. currencies. The MSCI EAFE Index, which measures the performance of large-cap stocks in Europe, Australasia, and the Far East, returned 6.37%. Most developed Asian markets produced positive returns in U.S. dollar terms. Japanese shares rose more than 5%, as the yen slipped. While a weaker yen hurts the performance of Japanese stocks in dollar terms, it can help the competitiveness of Japanese exports. European equity markets were broadly positive, especially Austria, Finland, and Denmark. Markets were buoyed by signs of a pickup in economic growth and continued European Central Bank stimulus efforts. UK shares returned almost 5% but lagged many other European markets, as Prime Minister Theresa May's decision to call snap elections in hopes of bolstering the Conservative Party's legislative majority backfired, forcing the "Tories" to form a coalition government with a smaller party.

Emerging markets equities performed in line with developed markets, helped by a generally improving growth backdrop. The MSCI Emerging Markets Index returned 6.38%. In dollar terms, markets in Asia strongly outperformed other regions. Chinese stocks rose more than 10%, while Chinese A shares rose almost 5%. In late June, MSCI announced that it would begin to add Chinese A shares to its emerging markets index, starting in June 2018. Major Latin American markets were mixed. Mexican shares climbed more than 7%, helped by a stronger peso and by the central bank's upgrade of the country's 2017 economic outlook and downgraded outlook for inflation. Stocks in Brazil fell more than 6%, hurt by bribery allegations involving President Michel Temer. Several emerging European markets rose sharply, but Russian shares skidded almost 10%, as the economic recovery remained anemic and oil prices and the ruble declined.

Bonds in developed non-U.S. markets produced good returns in dollar terms in the last three months, helped by stronger European currencies. Near the end of the quarter, UK bond yields spiked as Bank of England Governor Mark Carney indicated that "some removal of monetary stimulus" may be needed in the months ahead. In the eurozone, the European Central Bank continued its monthly bond purchases, but reduced the amount it spends on them. Bond prices were supported in part by the French presidential election's results, which reduced worries about other nations seeking to leave the EU. However, yields rose sharply at the end of June as ECB President Mario Draghi spoke of the need for being "prudent" when adjusting monetary policy in response to economic improvement. Japanese bond returns were flat, as the Bank of Japan's bond purchases kept the 10-year Japanese government bond (JGB) yield near 0%.

Emerging markets bonds also produced good returns in dollar terms, with local currency bonds faring better than dollar-denominated issues. Major emerging markets currencies were mixed: Brazil's real and the Russian ruble declined against the dollar as their economies slowly recovered from deep recessions, but the Turkish lira strengthened. The South African rand also strengthened versus the dollar, even though South Africa recently slipped into its first recession since 2009.

In this environment, all of the portfolios had positive absolute returns for the quarter, as did all but one of their component funds. The Global Equity Pool and the Growth Pool had the largest positive absolute returns, while the Gift Preservation Pool, though positive, had the smallest absolute return for the quarter.

T. Rowe Price Gift Preservation Pool Performance — June 30, 2017

The Gift Preservation Pool returned 0.28%, compared with 0.18% for its benchmark. The Short Term Bond Fund, the largest component of the pool, had a positive return and accounted for most of the pool's outperformance.

GIFT PRESERVATION POOL
PERFORMANCE AS OF June 30, 2017
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% 0.42% 0.33% 1.42% 2.11%
Underlying Funds Weight 0.46% 1.13% 1.09% 2.51% 3.28%
Short Term Bond Fund - I Class1 75.0%
US Treasury Money Fund1 25.0% 0.12% 0.17% 0.04% 0.37% 1.22%
WBGPP Weighted Benchmark 0.18% 0.46% 0.15% 0.57% 1.95%


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 — June 30, 2017

The Diversified Income Pool returned 2.20%, versus 1.74% for its weighted benchmark. The Spectrum Income Fund, which is the largest component of the pool, had a positive return in absolute terms. The Balanced Fund produced the largest absolute gain within the pool. The Real Assets Fund, which is the smallest component of the pool, had a negative absolute return.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF June 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Diversified Income Pool 2.20% 8.78% 6.36% 5.05% 5.76%
Underlying Funds Weight 1.86% 5.23% 4.42% 5.29% 6.16%
Spectrum Income Fund 60.0%
Equity Income Fund - I Class1 19.0% 2.22% 18.07% 12.22% 5.43% 7.14%
Balanced Fund - I Class1 19.0% 4.20% 14.40% 9.66% 5.96% 6.00%
Real Assets Fund - I Class1 2.00% -1.36% 2.83% 2.73% N/A N/A
WBDEP Weighted Benchmark 1.74% 5.02% 5.95% 5.21% 5.48%


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 — June 30, 2017

The Balanced Index Pool had a return of 2.83%, compared with 3.03% for its weighted benchmark. The U.S. Enhanced Bond Index Fund, the pool's largest component, had a positive return. The pool's largest absolute gain came from the International Equity Index Fund. Only the Real Assets Fund, the pool's smallest component, declined for the quarter.

BALANCED INDEX POOL
PERFORMANCE AS OF June 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (8/31/04)
T. Rowe Price Balanced Index Pool 2.83% 10.22% 7.72% 4.97% 6.14%
Underlying Funds Weight 1.61% -0.11% 2.26% 4.54% 4.15%
U.S. Bond Index Fund 40.0%
Equity Index 500 Fund - I Class1 29.9% 3.05% 17.78% 14.39% 6.96% 8.32%
Extended Equity Market Index Fund 10.0% 2.73% 21.80% 14.46% 7.74% 10.14%
International Equity Index Fund 17.1% 6.70% 20.54% 8.51% 1.20% 5.93%
Real Assets Fund - I Class1 3.0% -1.36% 2.83% 2.73% N/A N/A
WBBAX Weighted Benchmark 3.03% 11.36% 8.70% 5.65% 6.87%


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 Moderate Growth Pool Performance — June 30, 2017

The Moderate Growth Pool posted a return of 3.71%, while its weighted benchmark returned 3.18%. The Growth Stock Fund posted the largest absolute gain for the period. The Equity Income Fund and the Spectrum Index Fund also helped returns in absolute terms. Strong absolute returns also came from the International Stock Fund and the Emerging Markets Stock Fund. Only the Real Assets Fund, among the smaller components of the pool, detracted from absolute returns.

MODERATE GROWTH POOL
PERFORMANCE AS OF June 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Moderate Growth Pool 3.71% 15.25% 9.28% 5.38% 5.45%
Underlying Funds Weight 1.86% 5.23% 4.42% 5.29% 6.16%
Spectrum Income Fund 30.00%
Equity Index 500 Fund - I Class1 5.45% 3.05% 17.78% 14.39% 6.96% 4.98%
Growth Stock Fund - I Class1 15.20% 7.58% 29.15% 16.46% 8.98% 6.51%
Equity Income Fund - I Class1 15.20% 2.22% 18.07% 12.22% 5.43% 7.14%
Mid-Cap Growth Fund - I Class1 2.85% 6.01% 20.19% 16.35% 10.04% 9.42%
Mid-Cap Value Fund - I Class1 2.85% -0.10% 15.55% 14.88% 7.68% 11.18%
Small-Cap Stock Fund - I Class1 5.00% 2.41% 20.93% 13.90% 9.01% 9.39%
International Stock Fund - I Class1 8.55% 7.31% 21.69% 8.98% 2.99% 3.61%
International Growth & Income Fund - I Class1 8.55% 5.91% 18.00% 7.70% 0.69% 5.08%
Emerging Markets Stock Fund - I Class1 2.85% 7.11% 22.22% 5.86% 1.71% 8.31%
Real Assets Fund - I Class1 3.50% -1.36% 2.83% 2.73% N/A N/A
WBMPP Weighted Benchmark 3.18% 13.13% 9.73% 5.61% 5.58%


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 — June 30, 2017

The Growth Pool returned 4.49%, against the 3.93% return of its weighted benchmark. In absolute terms, the Growth Stock Fund and the Equity Income Fund helped absolute returns. Some of the largest absolute gains came from the International Stock Fund and the Emerging Markets Stock Fund. The Real Assets Fund, one of the smaller components of the pool, held back returns.

GROWTH POOL
PERFORMANCE AS OF June 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Growth Pool 4.49% 19.87% 11.55% 5.36% 5.54%
Underlying Funds Weight 3.05% 17.78% 14.39% 6.96% 4.98%
Equity Index 500 Fund - I Class1 10.20%
Growth Stock Fund - I Class1 20.45% 7.58% 29.15% 16.46% 8.98% 6.51%
Equity Income Fund - I Class1 20.45% 2.22% 18.07% 12.22% 5.43% 7.14%
Mid-Cap Growth Fund - I Class1 4.05% 6.01% 20.19% 16.35% 10.04% 9.42%
Mid-Cap Value Fund - I Class1 4.05% -0.10% 15.55% 14.88% 7.68% 11.18%
Small-Cap Stock Fund - I Class1 7.35% 2.41% 20.93% 13.90% 9.01% 9.39%
International Stock Fund - I Class1 12.10% 7.31% 21.69% 8.98% 2.99% 3.61%
International Growth & Income Fund - I Class1 12.10% 5.91% 18.00% 7.70% 0.69% 5.08%
Emerging Markets Stock Fund - I Class1 4.25% 7.11% 22.22% 5.86% 1.71% 8.31%
Real Assets Fund - I Class1 5.00% -1.36% 2.83% 2.73% N/A N/A
WBGRP Weighted Benchmark 3.93% 19.34% 12.94% 5.68% 5.01%


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 Global Equity Pool Performance — June 30, 2017

The Global Equity Pool returned 5.23%, compared with a 4.45% return for its weighted benchmark. The largest component of the pool, the Global Stock Fund, posted the most substantial gain for the month in absolute terms. The Value Fund also contributed strongly to returns. The Real Assets Fund was the only component to hinder absolute returns for the quarter.

GLOBAL EQUITY POOL
PERFORMANCE AS OF June 30, 2017
Total Return Annualized
3 Months
1 Year
5 Years
Since Inception (6/30/08)
T. Rowe Price Global Equity Pool 5.23% 19.92% 11.21% 5.28%
Underlying Funds Weight 7.82% 28.16% 16.01% 5.69%
Global Stock Fund - I Class1 22.30%
International Growth & Income Fund - I Class1 12.35% 5.91% 18.00% 7.70% 2.45%
International Equity Index Fund 16.60% 6.70% 20.54% 8.51% 2.55%
Emerging Markets Stock Fund - I Class1 9.95% 7.11% 22.22% 5.86% 1.43%
Equity Index 500 Fund - I Class1 14.50% 3.05% 17.78% 14.39% 9.49%
Value Fund - I Class1 11.15% 3.48% 18.12% 15.47% 9.83%
Mid-Cap Growth Fund - I Class1 2.40% 6.01% 20.19% 16.35% 11.80%
Mid-Cap Value Fund - I Class1 2.40% -0.10% 15.55% 14.88% 10.71%
Small-Cap Stock Fund - I Class1 3.35% 2.41% 20.93% 13.90% 12.46%
Real Assets Fund - I Class1 5.00% -1.36% 2.83% 2.73% N/A
WBGEP Weighted Benchmark 4.45% 19.42% 11.14% 5.84%


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.