Quarterly Pool Performance Update
One of the main advantages of investing in a donor-advised fund is the potential opportunity for your account assets to grow over time. So it's important to take a close look at your pool’s investment performance to be sure the returns are competitive.
After more than a year of strong gains, U.S. stocks experienced a sharp correction—defined as a drop of at least 10%—in the second quarter. A Greek debt crisis triggered investor worries, but concerns about the global economy, U.S. financials sector reforms, and the huge Gulf of Mexico oil spill also weighed on investor sentiment.
Small- and mid-cap stocks fared somewhat better than large-caps, but overall, U.S. stock declines were widespread with virtually no sectors being spared. Materials and energy stocks were among the weakest sectors, as lower commodity prices and the Gulf spill weighed on the group. Health care and financials also felt the ongoing fallout of reform efforts. Telecommunication services and utilities stocks held up best.
Non-U.S. stocks also generated losses for portfolios with global exposure. Markets in Asia and the U.S. fared better than Europe, and emerging markets held up better than developed markets overall.
With stocks falling, investors shifted toward high-quality bonds. Treasuries in particular gained on the trend, though investment-grade corporates, agency, and municipal bonds also advanced. Higher-risk segments, including high yield and many non-U.S. markets, had weaker results. Money market investments continued to post negligible returns in an environment where prevailing short-term interest rates stood near zero.
In an exceptionally volatile and challenging market environment, none of the investment pool options (except for the Gift Preservation Pool) were able to avoid losses. With limited exceptions, pool results were in keeping with benchmark returns.
Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you grant your shares. To request a prospectus or summary prospectus for any of the funds in which the pools invest, call 1-800-564-1597. Each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
T. Rowe Price Gift Preservation Pool Performance — June 30, 2010
The Gift Preservation Pool returned 0.37% compared with 0.04% for its weighted benchmark. An approach that sought to improve yield and manage risk via short-term bonds was beneficial.
| GIFT PRESERVATION POOL PERFORMANCE AS OF JUNE 30, 2010 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Since Inception3 (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Gift Preservation Pool1 | 0.37% | 3.56% | 3.59% | 3.25% | |
| Underlying Funds | Weight | 0.89% | 5.46% | 4.54% | 4.66% |
| Short-Term Bond Fund | 75.0% | ||||
| Summit Cash Reserves Fund | 25.0% | 0.00% | 0.04% | 2.86% | 2.51% |
| WBGPP Benchmark2 | 0.04% | 0.12% | 2.69% | 3.28% | |
1 The current weight 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 this date is based on the performance of the previous underlying fund allocations.
2 Consists of 100% Citigroup 3-Month Treasury Bill Index.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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 — June 30, 2010
The Diversified Income Pool returned -4.24% versus -1.38% for its weighted benchmark. The portfolio’s positions in diversifying sectors such as high yield bonds and dividend-paying stocks accounted for the bulk of its underperformance.
| DIVERSIFIED INCOME POOL PERFORMANCE AS OF JUNE 30, 2010 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Since Inception3 (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Diversified Income Pool1 | -4.24% | 13.65% | 3.42% | 4.65% | |
| Underlying Funds | Weight | -0.58% | 13.66% | 5.38% | 6.65% |
| Spectrum Income Fund | 60.0% | ||||
| Balanced Fund | 20.0% | -11.47% | 17.18% | -0.42% | 3.20% |
| Equity Income Fund | 20.0% | -7.19% | 12.74% | 2.46% | 2.99% |
| WBDEP Weighted Benchmark2 | -1.38% | 11.75% | 3.70% | 4.53% | |
1 The current weights of the underlying funds became effective on August 31, 2004;
additionally on this date, the Balanced Fund was added to the pool. All performance prior to August 31,
2004, is based upon the previously applied allocations of the underlying funds.
2 Consists of 60% Barclays Capital U.S. Aggregate Index, an investment-grade bond benchmark; 20% Russell 1000 Value Index; and 20% combined index portfolio (50% Standard & Poor's 500® Index, 40% Barclays Capital U.S. Aggregate Index, and 10% MSCI EAFE Index).
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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 — June 30, 2010
The Balanced Index Pool returned -5.91% versus -5.60% for its weighted benchmark. In keeping with its index approach, the portfolio’s performance was broadly reflective of market activity, and results were approximately in line with the custom benchmark.
| BALANCED INDEX POOL PERFORMANCE AS OF JUNE 30, 2010 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Since Inception3 (8/31/04) | ||
|---|---|---|---|---|---|
| T. Rowe Price Balanced Index Pool1 | -5.91% | 11.92% | 2.22% | 3.34% | |
| Underlying Funds | Weight | 3.46% | 9.41% | 5.56% | 5.34% |
| U.S. Bond Index Fund | 40.0% | ||||
| Equity Index 500 Fund | 36.0% | -11.48% | 14.09% | -1.02% | 0.64% |
| Extended Equity Market Index Fund | 12.0% | -9.68% | 23.08% | 1.36% | 4.50% |
| International Equity Index Fund | 12.0% | -14.54% | 5.24% | 1.07% | 3.50% |
| WBBAX Weighted Benchmark2 | -5.60% | 13.11% | 2.67% | 3.88% | |
1 The current weights of the underlying funds became effective
on June 30, 2008. All performance prior to June 30, 2008, is based upon the
previously applied allocations of the underlying funds.
2 Consists of 40% Barclays Capital U.S. Aggregate Index, an investment-grade bond benchmark; 36% Standard & Poor's 500 Index; 12% S&P Completion Index; and 12% FTSE International Limited Developed ex North America IndexTM. "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.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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 — June 30, 2010
The Moderate Growth Pool returned -8.28% versus -7.31% for its weighted benchmark. A substantial stake in bonds helped keep losses in check, but all components of the pool’s stock portfolio lost ground. Its international and emerging markets holdings had the worst absolute results for the period.
| MODERATE GROWTH POOL PERFORMANCE AS OF JUNE 30, 2010 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Since Inception3 (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Moderate Growth Pool1 | -8.28% | 15.35% | 2.11% | 2.23% | |
| Underlying Funds | Weight | -0.58% | 13.66% | 5.38% | 6.65% |
| Spectrum Income Fund | 30.0% | ||||
| Equity Income Fund | 17.5% | -11.47% | 17.18% | -0.42% | 3.20% |
| Growth Stock Fund | 17.5% | -11.78% | 14.48% | 0.65% | -0.62% |
| Equity Index 500 Fund | 8.0% | -11.48% | 14.09% | -1.02% | -1.77% |
| International Growth & Income Fund | 6.0% | -14.41% | 7.74% | 1.02% | 3.23% |
| International Stock Fund | 6.0% | -13.10% | 13.04% | 2.69% | 0.04% |
| Small-Cap Stock Fund | 6.0% | -8.80% | 26.31% | 2.29% | 4.96% |
| Mid-Cap Growth Fund | 3.5% | -8.20% | 24.22% | 4.34% | 4.57% |
| Mid-Cap Value Fund | 3.5% | -9.87% | 22.98% | 3.55% | 9.20% |
| Emerging Markets Stock Fund | 2.0% | -9.32% | 23.08% | 10.63% | 10.56% |
| WBMPP Weighted Benchmark2 | -7.31% | 12.90% | 1.79% | 2.25% | |
1 The current weights of the underlying funds became effective on
June 30, 2008; additionally on this date, the Emerging Markets Stock Fund was added to
the pool. All performance prior to June 30, 2008, is based upon the previously applied
allocations of the underlying funds.
2 Consists of 56% Russell 3000 Index, a measure of the performance of the broad U.S. stock market; 30% Barclays Capital U.S. Aggregate Index, an investment-grade bond benchmark; and 14% MSCI EAFE Index, an international stock benchmark.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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 — June 30, 2010
The Growth Pool returned -11.45% versus -11.77% for its weighted benchmark. On an absolute basis, the pool’s international exposure fared worst, while modest positions in small- and mid-cap stocks posted smaller losses.
| GROWTH POOL PERFORMANCE AS OF JUNE 30, 2010 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Since Inception3 (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Growth Pool1 | -11.45% | 16.07% | 0.48% | 0.96% | |
| Underlying Funds | Weight | -11.47% | 17.18% | -0.42% | 3.20% |
| Equity Income Fund | 24.5% | ||||
| Growth Stock Fund | 24.5% | -11.78% | 14.48% | 0.65% | -0.62% |
| Equity Index 500 Fund | 12.0% | -11.48% | 14.09% | -1.02% | -1.77% |
| Small-Cap Stock Fund | 9.0% | -8.80% | 26.31% | 2.29% | 4.96% |
| International Growth & Income Fund | 8.5% | -14.41% | 7.74% | 1.02% | 3.23% |
| International Stock Fund | 8.5% | -13.10% | 13.04% | 2.69% | 0.04% |
| Mid-Cap Growth Fund | 5.0% | -8.20% | 24.22% | 4.34% | 4.57% |
| Mid-Cap Value Fund | 5.0% | -9.87% | 22.98% | 3.55% | 9.20% |
| Emerging Markets Stock Fund | 3.0% | -9.32% | 23.08% | 10.63% | 10.56% |
| WBGRP Weighted Benchmark2 | -11.77% | 13.87% | -0.25% | -0.59% | |
1 The current weights of the underlying funds became effective
on June 30, 2008; additionally on this date, the Emerging Markets Stock Fund was
added to the pool. All performance prior to June 30, 2008, is based upon the
previously applied allocations of the underlying funds.
2 Consists of 80% Russell 3000 Index, a measure of the performance of the broad U.S. stock market, and 20% MSCI EAFE Index, an international stock benchmark.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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 — June 30, 2010
The Global Equity Pool returned -12.53% versus -11.96% for its weighted benchmark. Though positions in U.S. small- and mid-caps, as well as emerging markets, helped limit losses somewhat, the pool’s focus on developed overseas markets made losses inevitable.
| GLOBAL EQUITY POOL PERFORMANCE AS OF JUNE 30, 2010 |
Total Return4 | |||
| Three Months | One Year | Since Inception3 (6/30/08) | ||
|---|---|---|---|---|
| T. Rowe Price Global Equity Pool1 | -12.53% | 12.32% | -11.97% | |
| Underlying Funds | Weight | -13.61% | 9.75% | -18.31% |
| Global Stock Fund | 23.5% | |||
| International Equity Index Fund | 17.5% | -14.54% | 5.24% | -14.46% |
| Equity Index 500 Fund | 15.25% | -11.48% | 14.09% | -8.22% |
| International Growth & Income Fund | 13.0% | -14.41% | 7.74% | -14.08% |
| Value Fund | 11.75% | -11.49% | 17.37% | -6.66% |
| Emerging Markets Stock Fund | 10.5% | -9.32% | 23.08% | -10.86% |
| Small-Cap Stock Fund | 3.5% | -8.80% | 26.31% | 1.26% |
| Mid-Cap Growth Fund | 2.5% | -8.20% | 24.22% | -3.32% |
| Mid-Cap Value Fund | 2.5% | -9.87% | 22.98% | -0.05% |
| WBGEP Weighted Benchmark2 | -11.96% | 12.30% | -10.62% | |
1 The current weights of the underlying funds became effective
on June 30, 2008.
2 Consists of 100% MSCI ACWI (All Country World Index), a measure of equity market performance of developed and emerging markets.
3 These figures are annualized.
4 Returns are based on net asset value (NAV) 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.
