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 tax-free over time. So it's important to take a close look at your pool's investment performance to be sure the returns are competitive.
U.S. equities rose in the first quarter of 2013 despite domestic fiscal uncertainty and eurozone instability, with several major indexes hitting multiyear highs. Stocks advanced as the U.S. economic recovery continued to grind ahead, buoyed by improvements in the housing and employment markets. Corporations boasted healthy balance sheets and decent earnings growth. Heightened merger and acquisition activity provided further support, though the positive sentiment was tempered somewhat by concerns about higher taxes and budget sequestration. All market capitalization ranges posted solid gains, with mid- and small-cap shares faring better than their large-cap counterparts. Value stocks outperformed growth among large- and mid-cap shares but lagged in small-caps.
Central banks in many advanced economies continued their highly accommodative monetary policies. In the U.S., the Federal Reserve announced that it will hold interest rates at current levels until there is significant improvement in unemployment figures. However, it also indicated it may wind down its asset purchases sooner. Negative real yields persisted during the quarter, and investor quest for yield tightened credit spreads.
Much of Europe continued to struggle with recession, and it seems likely that resolving the European debt crisis will be a very slow process. An Italian election stalemate and unprecedented bank deposit tax in Cyprus highlighted ongoing instability in the eurozone. Japan pushed through aggressive fiscal stimulus and monetary easing to fight deflation and weaken the yen. In China, growth slowed from previous levels, but signs emerged that improving economic data is on the near horizon.
In this environment, the pools produced solid positive gains, with the exception of the Gift Preservation Pool, which performed in line with its benchmark.
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 — March 31, 2013
The Gift Preservation Pool returned 0.00% versus 0.02% for its benchmark.
The Summit Cash Reserves Fund had flat results due to central bank policies and other factors, and the Short-Term Bond Fund saw slight gains.
| GIFT PRESERVATION POOL PERFORMANCE AS OF March 31, 2013 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Gift Preservation Pool1 | 0.00% | 0.93% | 1.98% | 2.48% | |
| Underlying Funds | Weight | 0.18% | 1.89% | 3.19% | 3.28% |
| Short-Term Bond Fund | 75.00% | ||||
| Summit Cash Reserves Fund | 25.00% | 0.00% | 0.01% | 0.42% | 1.69% |
| WBGPP Benchmark2 | 0.02% | 0.08% | 0.27% | 1.80% | |
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 June 28, 2010, is based on the previously applied allocations of the underlying funds.
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 — March 31, 2013
The Diversified Income Pool returned 3.92% versus 3.47% for its weighted benchmark.
The Real Assets Fund was the only one of the four underlying funds with negative absolute returns, but it is the Pool's smallest allocation. The Equity Income Fund posted double-digit absolute returns. Spectrum Income Fund made the largest contribution to outperformance.
| DIVERSIFIED INCOME POOL PERFORMANCE AS OF March 31, 2013 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Diversified Income Pool1 | 3.92% | 9.25% | 6.12% | 7.94% | |
| Underlying Funds | Weight | 1.63% | 7.67% | 6.83% | 7.13% |
| Spectrum Income Fund | 60.00% | ||||
| Equity Income Fund | 19.00% | 11.19% | 17.20% | 5.53% | 9.04% |
| Balanced Fund | 19.00% | 5.33% | 9.72% | 5.85% | 8.22% |
| Real Assets Fund | 2.00% | -0.27% | 2.37% | N/A | N/A |
| WBDEP Weighted Benchmark2 | 3.47% | 7.98% | 5.73% | 7.35% | |
1 The current weights of the underlying funds became effective on August 31, 2004;
also on this date, the Balanced Fund was added to the pool. Performance prior to August 31,
2004, is based on the previously applied allocations of the underlying funds.
2 Consists of 60% Barclays U.S. Aggregate Bond Index, an investment-grade bond benchmark; 19.0% Russell 1000 Value Index; 19.0% combined index portfolio (50% Standard & Poor's 500® Index, 40% Barclays U.S. Aggregate Bond Index, and 10% MSCI EAFE Index); and 2.00% Blended Benchmarks (70% Russell 3000 Index and 30% MSCI EAFE Index). 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.
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 — March 31, 2013
The Balanced Index Pool returned 4.84% versus 5.42% for its weighted benchmark.
In keeping with its index approach, the portfolio's performance was reflective of market activity. Underlying funds indexing large- and small-cap stocks turned in the highest absolute returns, while the International Equity Index Fund lagged U.S. stocks. Returns for the U.S. Bond Enhanced Index Fund and Real Assets Fund were flat to negative.
| BALANCED INDEX POOL PERFORMANCE AS OF March 31, 2013 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 |
Since Inception3 (8/31/04)
|
||
|---|---|---|---|---|---|
| T. Rowe Price Balanced Index Pool1 | 4.84% | 8.87% | 5.28% | 5.97% | |
| Underlying Funds | Weight | 0.03% | 3.94% | 5.55% | 5.13% |
| U.S. Bond Enhanced Index Fund | 40.00% | ||||
| Equity Index 500 Fund | 29.90% | 10.55% | 13.69% | 5.60% | 6.12% |
| Extended Equity Market Index Fund | 10.00% | 13.07% | 17.63% | 8.96% | 9.49% |
| International Equity Index Fund | 17.10% | 3.47% | 10.37% | -0.76% | 6.02% |
| Real Assets Fund | 3.00% | -0.27% | 2.37% | N/A | N/A |
| WBBAX Weighted Benchmark2 | 5.42% | 9.89% | 5.75% | 6.58% | |
1 The current weights of the underlying funds became effective
on September 30, 2011. Performance prior to September 30, 2011, is based on the
previously applied allocations of the underlying funds.
2 Consists of 40% Barclays U.S. Aggregate Bond Index, an investment-grade bond benchmark; 29.9% Standard & Poor's 500 Index; 10.0% S&P Completion Index; 17.1% FTSE International Limited Developed ex North America IndexTM; and 3.0% Blended Benchmark (70% Russell 3000 Index and 30% MSCI EAFE Index). "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.
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 — March 31, 2013
The Moderate Growth Pool returned 5.61% versus 6.44% for its weighted benchmark.
In general, the pool's U.S. equity funds outperformed non-U.S equity funds. On a relative basis, the pool had disappointing results across equity holdings and particularly among non-U.S. positions.
| MODERATE GROWTH POOL PERFORMANCE AS OF March 31, 2013 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Moderate Growth Pool1 | 5.61% | 9.53% | 5.85% | 8.58% | |
| Underlying Funds | Weight | 1.63% | 7.67% | 6.83% | 7.13% |
| Spectrum Income Fund | 30.00% | ||||
| Equity Index 500 Fund | 5.45% | 10.55% | 13.69% | 5.60% | 8.26% |
| Growth Stock Fund | 15.20% | 7.73% | 7.53% | 6.97% | 9.24% |
| Equity Income Fund | 15.20% | 11.19% | 17.20% | 5.53% | 9.04% |
| Mid-Cap Growth Fund | 2.85% | 11.90% | 12.59% | 9.64% | 12.96% |
| Mid-Cap Value Fund | 2.85% | 12.06% | 20.28% | 8.81% | 12.71% |
| Small-Cap Stock Fund | 5.00% | 12.52% | 17.01% | 12.71% | 12.41% |
| International Stock Fund | 8.55% | 2.50% | 6.90% | 1.22% | 9.72% |
| International Growth & Income Fund | 8.55% | 4.32% | 7.57% | -0.58% | 10.23% |
| Emerging Markets Stock Fund | 2.85% | -2.29% | 4.07% | -1.23% | 16.33% |
| Real Assets Fund | 3.50% | -0.27% | 2.37% | N/A | N/A |
| WBMPP Weighted Benchmark2 | 6.44% | 10.90% | 5.48% | 8.41% | |
1 The current weights of the underlying funds became effective on
September 30, 2011. Performance prior to September 30, 2011, 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 Consists of 46.55% Russell 3000 Index, which measures the performance of the broad U.S. stock market; 30% Barclays U.S. Aggregate Bond Index, an investment-grade bond benchmark; 19.95% MSCI EAFE Index, an international stock benchmark; and 3.5% MSCI All Country World Index, a measure of equity market performance of developed and emerging markets. 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.
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 — March 31, 2013
The Growth Pool returned 7.44% versus 9.31% for its weighted benchmark.
In general, the pool's U.S. equity funds outperformed non-U.S equity funds. However, on a relative basis, the pool had disappointing results across equity holdings and particularly among non-U.S. positions. The Emerging Markets Stock Fund and Real Assets Fund dampened returns as growth slowed in some emerging markets and demand for commodities slackened.
| GROWTH POOL PERFORMANCE AS OF March 31, 2013 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Growth Pool1 | 7.44% | 10.59% | 5.19% | 9.37% | |
| Underlying Funds | Weight | 10.55% | 13.69% | 5.60% | 8.26% |
| Equity Index 500 Fund | 10.20% | ||||
| Growth Stock Fund | 20.45% | 7.73% | 7.53% | 6.97% | 9.24% |
| Equity Income Fund | 20.45% | 11.19% | 17.20% | 5.53% | 9.04% |
| Mid-Cap Growth Fund | 4.05% | 11.90% | 12.59% | 9.64% | 12.96% |
| Mid-Cap Value Fund | 4.05% | 12.06% | 20.28% | 8.81% | 12.71% |
| Small-Cap Stock Fund | 7.35% | 12.52% | 17.01% | 12.71% | 12.41% |
| International Stock Fund | 12.10% | 2.50% | 6.90% | 1.22% | 9.72% |
| International Growth & Income Fund | 12.10% | 4.32% | 7.57% | -0.58% | 10.23% |
| Emerging Markets Stock Fund | 4.25% | -2.29% | 4.07% | -1.23% | 16.33% |
| Real Assets Fund | 5.00% | -0.27% | 2.37% | N/A | N/A |
| WBGRP Weighted Benchmark2 | 9.31% | 13.81% | 4.82% | 9.72% | |
1 The current weights of the underlying funds became effective
on September 30, 2011. Performance prior to September 30, 2011, 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 Consists of 66.55% Russell 3000 Index, which measures the performance of the broad U.S. stock market; 28.45% MSCI EAFE Index, an international stock benchmark; and 5% MSCI All Country World Index, a measure of equity market performance of developed and emerging markets. 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.
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 — March 31, 2013
The Global Equity Pool returned 6.20% versus 6.63% for its benchmark.
While the pool's U.S. equity holdings had decent absolute performance, their relative results were mixed. Positions in International Equity Index and Emerging Markets Stock were the largest detractors from performance.
| GLOBAL EQUITY POOL PERFORMANCE AS OF March 31, 2013 |
Total Return3 | |||
| Three Months | One Year |
Since Inception2 (6/30/08)
|
||
|---|---|---|---|---|
| T. Rowe Price Global Equity Pool | 6.20% | 9.59% | 1.97% | |
| Underlying Funds | Weight | 6.89% | 6.08% | -1.69% |
| Global Stock Fund | 22.30% | |||
| International Growth & Income Fund | 12.35% | 4.32% | 7.57% | 0.08% |
| International Equity Index Fund | 16.60% | 3.47% | 10.37% | -0.23% |
| Emerging Markets Stock Fund | 9.95% | -2.29% | 4.07% | -0.84% |
| Equity Index 500 Fund | 14.50% | 10.55% | 13.69% | 6.53% |
| Value Fund | 11.15% | 12.96% | 20.13% | 7.68% |
| Mid-Cap Growth Fund | 2.40% | 11.90% | 12.59% | 9.14% |
| Mid-Cap Value Fund | 2.40% | 12.06% | 20.28% | 9.69% |
| Small-Cap Stock Fund | 3.35% | 12.52% | 17.01% | 13.21% |
| Real Assets Fund | 5.00% | -0.27% | 2.37% | N/A |
| WBGEP Benchmark1 | 6.63% | 11.19% | 3.07% | |
1 Consists of 100% MSCI All Country World Index, a measure of equity market performance of developed and emerging markets.
2 These figures are annualized.
3 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.
