U.S. stocks continued to rise in the third quarter, with most major indexes reaching new highs through the latter part of September. Equities were buoyed by favorable economic data and solid second-quarter corporate earnings reports. While market volatility remained generally low, stocks occasionally suffered sharp but brief pullbacks in response to rising tensions between the U.S. and North Korea. Small-cap shares outperformed their larger peers. As measured by various Russell indexes, growth stocks outpaced value shares across all market capitalizations. In the large-cap universe, as measured by the S&P 500, most sectors produced solid positive returns. Despite periodic concerns about extended valuations, information technology shares performed best, as many leading companies reported gains in revenues and earnings. Energy stocks performed well for the quarter, thanks to a rally in September.

Domestic investment-grade bonds produced modest positive returns in the third quarter. The Bloomberg Barclays U.S. Aggregate Bond Index returned 0.85%. Longer-term Treasury yields declined for most of the quarter as rising geopolitical tensions prompted some investors to seek the relative safety of U.S. government debt. However, yields rebounded in September as investors became less risk averse, and as President Donald Trump and Congress agreed in early September to fund the federal government and push back the debt ceiling for three months. Also, the Fed announced—as expected—that it would begin to reduce the size of its balance sheet starting in October.

Developed non-U.S. equity markets outperformed large-cap U.S. shares, helped by a weaker dollar versus the euro and pound sterling, which lifted eurozone and UK returns in dollar terms. The MSCI EAFE Index, which measures the performance of mostly large-cap stocks in Europe, Australasia, and the Far East, returned 5.47%. Major European markets rose, lifted in part by the region’s ongoing economic recovery. Shares in oil producer Norway fared best, but peripheral eurozone markets Italy and Portugal also did very well, posting returns that exceeded 13%. Markets in Asia produced more moderate gains. Japanese shares returned slightly more than 4% in dollar terms, as the yen edged lower versus the greenback.

Emerging markets equities outperformed developed markets in dollar terms, helped by solid global economic growth and strengthening in some non-U.S. currencies. The MSCI Emerging Markets Index returned 8.04%. All broad emerging regions produced gains. Several Latin American markets produced robust returns, led by Brazil, where shares advanced 23% in dollar terms. The Brazilian market benefited from a stronger currency, interest rate cuts, plans to privatize state-owned assets, and the passage of the country’s first labor reform package in 70 years. In emerging Europe, Russian stocks advanced 18%, helped by a stronger ruble, rising oil prices, and a pickup in economic growth. Central European markets produced solid returns, but Turkish shares were nearly flat. Asian markets were mostly positive, led by China and Thailand, but shares in Indonesia fell slightly. Shares in former frontier country Pakistan plunged 16%, in part because of political uncertainty following the supreme court’s ousting of the prime minister. South Korean shares rose a relatively modest 3% for the quarter, but the market is one of the region’s top performers for the year-to-date period.

Bonds in developed non-U.S. markets outperformed domestic bonds in the third quarter, as a weaker dollar versus the pound and the euro lifted European bond returns in dollar terms. In the UK, bond yields fell through early September, but yields spiked through the end of the quarter as the Bank of England cautioned that “some withdrawal of monetary stimulus” was likely in the next few months. In the eurozone, German bond yields followed a similar pattern, declining for much of the quarter but rising in the latter part of September. In Asia, the Bank of Japan offered in early July to purchase an unlimited amount of bonds as it targets a 10-year government bond yield of 0%.

Emerging markets bonds produced strong returns in the third quarter, helped by solid or improving economic growth and falling interest rates in various countries. Local currency bonds fared better than dollar-denominated issues, as some emerging markets currencies strengthened versus the greenback. Brazilian bonds were boosted by central bank interest rate cuts and falling inflation, whereas local currency South African debt struggled amid rand weakness versus the dollar.

In this environment, all of the portfolios had positive absolute returns for the quarter, as did all 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 — September 30, 2017

The Gift Preservation Pool returned returned 0.21%, compared with 0.26% for its benchmark. A positive return for the Short Term Bond Fund, the largest component of the pool, accounted for most of the pool’s positive performance.

GIFT PRESERVATION POOL
PERFORMANCE AS OF September 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 0.21% 0.42% 0.26% 1.32% 2.09%
Underlying Funds Weight 0.46% 1.17% 1.01% 2.40% 3.26%
Short Term Bond Fund - I Class1 75.0%
US Treasury Money Fund1 25.0% 0.19% 0.37% 0.08% 0.29% 1.22%
WBGPP Weighted Benchmark 0.26% 0.64% 0.19% 0.46% 1.94%


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, 2017

The Diversified Income Pool returned 2.55%, versus 1.81% for its weighted benchmark. The Spectrum Income Fund, which is the largest component of the pool, had a positive absolute return. The Equity Income Fund produced the largest absolute gain within the pool.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF September 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Diversified Income Pool 2.55% 8.32% 5.97% 5.17% 5.82%
Underlying Funds Weight 1.77% 4.50% 4.02% 5.25% 6.17%
Spectrum Income Fund 60.0%
Equity Income Fund - I Class1 19.0% 4.40% 18.35% 11.81% 6.03% 7.30%
Balanced Fund - I Class1 19.0% 3.86% 14.01% 9.35% 6.12% 6.14%
Real Assets Fund - I Class1 2.00% 3.78% 3.55% 2.08% N/A N/A
WBDEP Weighted Benchmark 1.81% 5.27% 5.67% 5.18% 5.51%


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, 2017

The Balanced Index Pool had a return of 3.03%, compared with 3.25% for its weighted benchmark. The U.S. Enhanced Bond Index Fund, the pool’s largest component, and the Real Assets Fund, its smallest component, had the weakest absolute returns. The pool’s largest absolute gain came from the International Equity Index Fund.

BALANCED INDEX POOL
PERFORMANCE AS OF September 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (8/31/04)
T. Rowe Price Balanced Index Pool 3.03% 10.10% 7.43% 5.08% 6.26%
Underlying Funds Weight 0.77% 0.08% 2.04% 4.32% 4.13%
U.S. Bond Index Fund 40.0%
Equity Index 500 Fund - I Class1 29.9% 4.47% 18.51% 14.00% 7.22% 8.51%
Extended Equity Market Index Fund 10.0% 5.01% 19.35% 14.24% 8.32% 10.34%
International Equity Index Fund 17.1% 5.17% 19.24% 8.20% 1.43% 6.22%
Real Assets Fund - I Class1 3.0% 3.78% 3.55% 2.08% N/A N/A
WBBAX Weighted Benchmark 3.25% 11.23% 8.43% 5.77% 6.99%


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, 2017

The Moderate Growth Pool posted a return of 3.90%, while its weighted benchmark returned 3.81%. The Spectrum Index Fund and the Equity Income Fund helped returns in absolute terms. Strong absolute returns also came from the Emerging Markets Stock Fund.

MODERATE GROWTH POOL
PERFORMANCE AS OF September 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Moderate Growth Pool 3.90% 14.28% 8.98% 5.66% 5.61%
Underlying Funds Weight 1.77% 4.50% 4.02% 5.25% 6.17%
Spectrum Income Fund 30.00%
Equity Index 500 Fund - I Class1 5.45% 4.47% 18.51% 14.00% 7.22% 5.17%
Growth Stock Fund - I Class1 15.20% 5.48% 26.28% 16.33% 9.19% 6.74%
Equity Income Fund - I Class1 15.20% 4.40% 18.35% 11.81% 6.03% 7.30%
Mid-Cap Growth Fund - I Class1 2.85% 4.35% 20.29% 16.42% 10.14% 9.54%
Mid-Cap Value Fund - I Class1 2.85% 3.04% 13.96% 13.74% 8.52% 11.20%
Small-Cap Stock Fund - I Class1 5.00% 5.20% 19.86% 13.95% 9.84% 9.57%
International Stock Fund - I Class1 8.55% 4.87% 18.95% 8.57% 3.04% 3.85%
International Value Equity Fund - I Class1 8.55% 5.10% 15.97% 7.62% 1.06% 5.31%
Emerging Markets Stock Fund - I Class1 2.85% 10.63% 24.09% 6.30% 1.35% 8.82%
Real Assets Fund - I Class1 3.50% 3.78% 3.55% 2.08% N/A N/A
WBMPP Weighted Benchmark 3.81% 13.19% 9.49% 5.83% 5.73%


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, 2017

The Growth Pool returned 4.86%, against the 5.09% return of its weighted benchmark. In absolute terms, the Growth Stock Fund, one of the largest components of the pool, and the Equity Income Fund both helped absolute returns. The largest absolute gain came from the Emerging Markets Stock Fund. Returns for the Real Assets Fund were among the weakest in the pool, though positive in absolute terms.

GROWTH POOL
PERFORMANCE AS OF September 30, 2017
Total Return Annualized
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Growth Pool 4.86% 18.83% 11.30% 5.78% 5.75%
Underlying Funds Weight 4.47% 18.51% 14.00% 7.22% 5.17%
Equity Index 500 Fund - I Class1 10.20%
Growth Stock Fund - I Class1 20.45% 5.48% 26.28% 16.33% 9.19% 6.74%
Equity Income Fund - I Class1 20.45% 4.40% 18.35% 11.81% 6.03% 7.30%
Mid-Cap Growth Fund - I Class1 4.05% 4.35% 20.29% 16.42% 10.14% 9.54%
Mid-Cap Value Fund - I Class1 4.05% 3.04% 13.96% 13.74% 8.52% 11.20%
Small-Cap Stock Fund - I Class1 7.35% 5.20% 19.86% 13.95% 9.84% 9.57%
International Stock Fund - I Class1 12.10% 4.87% 18.95% 8.57% 3.04% 3.85%
International Value Equity Fund - I Class1 12.10% 5.10% 15.97% 7.62% 1.06% 5.31%
Emerging Markets Stock Fund - I Class1 4.25% 10.63% 24.09% 6.30% 1.35% 8.82%
Real Assets Fund - I Class1 5.00% 3.78% 3.55% 2.08% N/A N/A
WBGRP Weighted Benchmark 5.09% 19.23% 12.65% 6.07% 5.24%


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, 2017

The Global Equity Pool returned 4.78%, compared with a 5.31% return for its weighted benchmark. The most substantial gain for the quarter in absolute terms came from the Emerging Markets Stock Fund, which is among the larger components of the pool. The Global Stock Fund, the pool’s largest component, and the Real Assets Fund, its smallest, had among the weakest returns in absolute terms.

GLOBAL EQUITY POOL
PERFORMANCE AS OF September 30, 2017
Total Return Annualized
3 Months
1 Year
5 Years
Since Inception (6/30/08)
T. Rowe Price Global Equity Pool 4.78% 18.17% 10.87% 5.67%
Underlying Funds Weight 3.86% 21.52% 15.52% 5.97%
Global Stock Fund - I Class1 22.30%
International Value Equity Fund - I Class1 12.35% 5.10% 15.97% 7.62% 2.93%
International Equity Index Fund 16.60% 5.17% 19.24% 8.20% 3.04%
Emerging Markets Stock Fund - I Class1 9.95% 10.63% 24.09% 6.30% 2.50%
Equity Index 500 Fund - I Class1 14.50% 4.47% 18.51% 14.00% 9.74%
Value Fund - I Class1 11.15% 3.36% 17.25% 14.44% 9.95%
Mid-Cap Growth Fund - I Class1 2.40% 4.35% 20.29% 16.42% 11.98%
Mid-Cap Value Fund - I Class1 2.40% 3.04% 13.96% 13.74% 10.76%
Small-Cap Stock Fund - I Class1 3.35% 5.20% 19.86% 13.95% 12.71%
Real Assets Fund - I Class1 5.00% 3.78% 3.55% 2.08% N/A
WBGEP Weighted Benchmark 5.31% 19.29% 10.79% 6.26%


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.

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