Major U.S. stock indexes rose in the first quarter of 2017, as equities continued their post-election rally, helped by fairly high earnings expectations, solid domestic economic data, prospects for reduced regulations, and signs of stronger economic growth around the world. Stocks struggled a bit in March, however, as the Federal Reserve raised short-term interest rates on March 15, which was somewhat sooner than previously expected given that the central bank had just raised rates in December. Also, the failure of the House of Representatives to pass legislation that would repeal and replace the Affordable Care Act - which was one of President Trump's major campaign promises—raised some concerns that the president's legislative agenda would have more difficulty passing through Congress than previously believed. Large-cap stocks outperformed their smaller peers. As measured by various Russell indexes, growth stocks strongly outperformed value stocks across all market capitalizations—a reversal of the trend that prevailed last year, especially following the November elections.

U.S. bonds produced positive returns, as long-term interest rates edged lower for the quarter, even though the Fed raised short-term rates in March and Fed officials projected two more rate increases this year. (Bond prices and yields move in opposite directions.) Municipal bonds outperformed taxable bonds, helped by limited issuance and a pickup in demand following poor performance in the closing months of 2016. In the taxable investment-grade bond universe, corporate bonds—despite record issuance—and long-term Treasuries did best. Asset- and mortgage-backed securities produced mild gains. High yield bonds outperformed high-quality bonds for the quarter, as investors continued to seek securities with attractive yields.

Stocks in developed non-U.S. markets fared better than U.S. shares, as a weaker dollar versus major non-U.S. currencies lifted returns in dollar terms. Several developed Asian markets rose strongly. Japanese shares were flat in yen terms but rose more than 4% due to a stronger yen versus the greenback. In Europe, most equity markets produced good returns and were buoyed by improving macroeconomic trends. Also, there was some relief following the mid-March general elections in the Netherlands, where a major anti-immigration party came in second place but is unlikely to be included in a coalition government. UK shares returned about 5%, as the government formally began the two-year process of leaving the European Union in March.

Emerging markets equities outperformed stocks in developed markets, helped in part by stronger currencies versus the dollar. Asian markets were led by India and South Korea. Latin American markets rose broadly. Shares in Brazil advanced more than 10%, while Mexican shares climbed 16%, helped by a more than 9% gain in the peso versus the dollar. In emerging Europe, equities in Poland and Turkey recorded strong gains, but Russian shares fell more than 4% as the economy remained sluggish and hopes faded for U.S. sanctions to be lifted by the Trump administration.

Bonds in developed non-U.S. markets produced solid returns in the first quarter, as stronger non-U.S. currencies boosted returns in dollar terms. In Europe, increasing inflation and anticipation of rising U.S. interest rates pressured some eurozone bond market yields higher. Yields eased somewhat following the mid-March Dutch elections, the results of which reduced fears of rising nationalism in the European Union. In Japan, the central bank continued pursuing its policy of keeping the 10-year government bond yield near 0%.

Bonds in emerging markets outpaced bonds in developed markets, helped by investors’ demand for higher-yielding securities. In general, bonds denominated in local currencies fared notably better than dollar-denominated debt, as a weaker dollar versus various emerging markets currencies—especially the Mexican peso and the Russian ruble—boosted returns in dollar terms.

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 — March 31, 2017

The Gift Preservation Pool returned 0.35%, compared with 0.12% for its benchmark. The Short Term Bond Fund, the largest component of the pool, had a positive return and accounted for almost all of the pool's outperformance.

GIFT PRESERVATION POOL
PERFORMANCE AS OF March 31, 2017
Total Return3 Annualized4
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Gift Preservation Pool 1 0.35% 0.64% 0.33% 1.49% 2.13%
Underlying Funds Weight 0.66% 1.73% 1.11% 2.54% 3.30%
Short Term Bond Fund - I Class5 75.0%
US Treasury Money Fund 25.0% 0.04% 0.06% 0.02% 0.47% 1.23%
WBGPP Weighted Benchmark2 0.12% 0.34% 0.11% 0.67% 1.97%


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 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.

4 These figures are annualized.

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 — March 31, 2017

The Diversified Income Pool returned 2.88%, versus 2.03% 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.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF March 31, 2017
Total Return3 Annualized4
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Diversified Income Pool1 2.88% 9.56% 5.73% 5.09% 5.71%
Underlying Funds Weight 2.14% 6.57% 4.18% 5.20% 6.14%
Spectrum Income Fund 60.0%
Equity Income Fund - I Class5 19.0% 3.34% 20.05% 11.11% 5.89% 7.11%
Balanced Fund - I Class5 19.0% 5.37% 11.23% 8.18% 5.93% 5.82%
Real Assets Fund - I Class5 2.0% 2.42% 13.08% 1.72% N/A N/A
WBDEP Weighted Benchmark2 2.03% 5.92% 5.71% 5.18% 5.46%


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% Bloomberg Barclays U.S. Aggregate Bond Index, 19% Russell 1000 Value Index, 19% Balanced Fund Blended Benchmark (45.5% S&P 500 Index, 35% Bloomberg 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% Bloomberg Barclays U.S. Aggregate Bond Index, 19% Russell 1000 Value Index, 19% Balanced Fund Blended Benchmark (45.5% S&P 500 Index, 35% Bloomberg 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 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.

4 These figures are annualized.

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 — March 31, 2017

The Balanced Index Pool had a return of 3.93%, compared with 4.12% for its weighted benchmark. The pool’s largest absolute gain came from the International Equity Index Fund as non-U.S. securities outperformed. The U.S. Enhanced Bond Index Fund, the pool’s largest component, had a positive return in a favorable market for domestic bonds.

BALANCED INDEX POOL
PERFORMANCE AS OF March 31, 2017
Total Return3 Annualized4
3 Months 1 Year 5 Years 10 Years
Since Inception (8/31/04)
T. Rowe Price Balanced Index Pool1 3.93% 9.38% 6.68% 5.02% 6.03%
Underlying Funds Weight 0.97% 0.76% 2.33% 4.31% 4.10%
U.S. Bond Index Fund 40.0%
Equity Index 500 Fund - I Class5 29.9% 6.04% 17.07% 13.06% 7.28% 8.23%
Extended Equity Market Index Fund 10.0% 4.55% 22.52% 12.67% 7.99% 10.11%
International Equity Index Fund 17.1% 8.10% 12.10% 5.57% 1.16% 5.50%
Real Assets Fund - I Class5 3.0% 2.42% 13.08% 1.72% N/A N/A
WBBAX Weighted Benchmark2 4.12% 10.04% 7.67% 5.70% 6.76%


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% Bloomberg 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% Bloomberg 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 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.

4 These figures are annualized.

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 — March 31, 2017

The Moderate Growth Pool posted a return of 5.44%, while its weighted benchmark returned 4.74%. The Emerging Markets Stock Fund, the Growth Stock Fund, and the International Stock Fund had the strongest returns in absolute terms. The Spectrum Income Fund, the pool's largest component, also helped returns.

MODERATE GROWTH POOL
PERFORMANCE AS OF March 31, 2017
Total Return3 Annualized4
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Moderate Growth Pool1 5.44% 13.44% 7.75% 5.52% 5.31%
Underlying Funds Weight 2.14% 6.57% 4.18% 5.20% 6.14%
Spectrum Income Fund 30.00%
Equity Index 500 Fund - I Class5 5.45% 6.04% 17.07% 13.06% 7.28% 4.86%
Growth Stock Fund - I Class5 15.20% 11.17% 19.27% 13.62% 9.00% 6.14%
Equity Income Fund - I Class5 15.20% 3.34% 20.05% 11.11% 5.89% 7.11%
Mid-Cap Growth Fund - I Class5 2.85% 8.19% 15.61% 13.85% 10.60% 9.18%
Mid-Cap Value Fund - I Class5 2.85% 3.24% 20.72% 14.16% 8.44% 11.36%
Small-Cap Stock Fund - I Class5 5.00% 3.54% 23.11% 12.75% 9.24% 9.38%
International Stock Fund - I Class5 8.55% 10.14% 13.11% 5.79% 2.86% 3.23%
International Growth & Income Fund - I Class5 8.55% 7.19% 9.26% 4.70% 0.72% 4.80%
Emerging Markets Stock Fund - I Class5 2.85% 12.38% 19.54% 2.81% 2.54% 7.99%
Real Assets Fund - I Class5 3.50% 2.42% 13.08% 1.72% N/A N/A
WBMPP Weighted Benchmark2 4.74% 11.68% 8.55% 5.69% 5.47%


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% Bloomberg 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% Bloomberg 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 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.

4 These figures are annualized.

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 — March 31, 2017

The Growth Pool returned 6.88%, against the 6.45% return of its weighted benchmark. In absolute terms, the Growth Stock Fund and the International Stock Fund had among the largest gains, reflecting larger market trends in favor of growth and non-U.S. stocks for the quarter. The Real Assets Fund, one of the smaller components of the pool, had the smallest gain in absolute terms.

GROWTH POOL
PERFORMANCE AS OF March 31, 2017
Total Return3 Annualized4
3 Months 1 Year 5 Years 10 Years
Since Inception (9/30/00)
T. Rowe Price Growth Pool1 6.88% 16.65% 9.47% 5.59% 5.35%
Underlying Funds Weight 6.04% 17.07% 13.06% 7.28% 4.86%
Equity Index 500 Fund - I Class5 10.20%
Growth Stock Fund - I Class5 20.45% 11.17% 19.27% 13.62% 9.00% 6.14%
Equity Income Fund - I Class5 20.45% 3.34% 20.05% 11.11% 5.89% 7.11%
Mid-Cap Growth Fund - I Class5 4.05% 8.19% 15.61% 13.85% 10.60% 9.18%
Mid-Cap Value Fund - I Class5 4.05% 3.24% 20.72% 14.16% 8.44% 11.36%
Small-Cap Stock Fund - I Class5 7.35% 3.54% 23.11% 12.75% 9.24% 9.38%
International Stock Fund - I Class5 12.10% 10.14% 13.11% 5.79% 2.86% 3.23%
International Growth & Income Fund - I Class5 12.10% 7.19% 9.26% 4.70% 0.72% 4.80%
Emerging Markets Stock Fund - I Class5 4.25% 12.38% 19.54% 2.81% 2.54% 7.99%
Real Assets Fund - I Class5 5.00% 2.42% 13.08% 1.72% N/A N/A
WBGRP Weighted Benchmark2 6.45% 16.78% 11.11% 5.87% 4.84%


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 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.

4 These figures are annualized.

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 — March 31, 2017

The Global Equity Pool returned 7.55%, compared with a 7.05% return for its weighted benchmark. The Global Stock Fund, which is the largest component of the pool, and the Emerging Markets Stock Fund posted the largest gains for the month in absolute terms. The Value Fund also contributed strongly to absolute returns. The Real Assets Fund, though positive, had the smallest gain.

GLOBAL EQUITY POOL
PERFORMANCE AS OF March 31, 2017
Total Return3 Annualized4
3 Months
1 Year
5 Years
Since Inception (6/30/08)
T. Rowe Price Global Equity Pool1 7.55% 15.89% 8.57% 4.82%
Underlying Funds Weight 10.52% 21.12% 11.92% 4.95%
Global Stock Fund - I Class5 22.30%
International Growth & Income Fund - I Class5 12.35% 7.19% 9.26% 4.70% 1.85%
International Equity Index Fund 16.60% 8.10% 12.10% 5.57% 1.86%
Emerging Markets Stock Fund - I Class5 9.95% 12.38% 19.54% 2.81% 0.67%
Equity Index 500 Fund - I Class5 14.50% 6.04% 17.07% 13.06% 9.40%
Value Fund - I Class5 11.15% 5.02% 15.99% 13.69% 9.70%
Mid-Cap Growth Fund - I Class5 2.40% 8.19% 15.61% 13.85% 11.41%
Mid-Cap Value Fund - I Class5 2.40% 3.24% 20.72% 14.16% 11.05%
Small-Cap Stock Fund - I Class5 3.35% 3.54% 23.11% 12.75% 12.53%
Real Assets Fund - I Class5 5.00% 2.42% 13.08% 1.72% N/A
WBGEP Weighted Benchmark2 7.05% 15.69% 8.97% 5.48%


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 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.

4 These figures are annualized.

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.
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.