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.
Global equity markets rallied in the fourth quarter. Most gains were concentrated in October as investors were cautiously optimistic that European leaders would agree on a decisive solution to their long-simmering sovereign debt crisis. The incremental measures that actually occurred weighed on investor sentiment in the remainder of the quarter. While U.S. economic data proved stronger than expected, concerns about the U.S. fiscal situation lingered.
Small- and mid-cap stocks outperformed large-caps for the quarter. Results were positive across S&P 500 sectors, led by energy, industrials and business services, and materials, which are more closely linked to economic growth. Information technology, utilities, and telecommunication services lagged.
Among fixed income securities, investment-grade U.S. bonds produced reasonable gains, but high yield significantly outperformed as investors sought yield in a low-rate environment. Among investment-grade bonds, long-term Treasuries led, while municipal and corporate bonds also did well. Agency mortgage-backed and asset-backed securities were mostly flat.
Developed non-U.S. equities posted gains but lagged their U.S. peers, in part due to a stronger dollar. Major European markets rose, led by Nordic countries. In Asia, Japan sagged, but Australia and Hong Kong rose moderately. Emerging market equities narrowly outperformed developed non-U.S. markets. Latin America strongly outperformed here, while deep losses in India weighed on emerging Asia. In Europe, a steep decline in Turkey held back results.
Government bonds in developed non-U.S. markets ended in negative territory, due primarily to relatively weak currencies. Rising yields in the eurozone, including in countries once considered safe havens, also hurt returns. Emerging market government debt did much better, a testament to their generally lower debt levels and better growth prospects. However, a strong dollar hurt returns on local currency bonds.
In this investment environment, each of the investment pools posted positive returns and all outpaced their respective benchmarks.
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 — December 31, 2011
The Gift Preservation Pool returned 0.14% versus 0.01% for its weighted benchmark.
Outperformance stemmed from the Short-Term Bond Fund, as central bank policies have led to flat returns for the Summit Cash Reserves Fund.
| GIFT PRESERVATION POOL PERFORMANCE AS OF December 31, 2011 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Gift Preservation Pool1 | 0.14% | 0.58% | 2.74% | 2.72% | |
| Underlying Funds | Weight | 0.35% | 1.46% | 4.02% | 3.67% |
| Short-Term Bond Fund | 75.0% | ||||
| Summit Cash Reserves Fund | 25.0% | 0.00% | 0.01% | 1.58% | 1.87% |
| WBGPP Weighted Benchmark2 | 0.01% | 0.08% | 1.48% | 2.37% | |
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 — December 31, 2011
The Diversified Income Pool returned 6.15% versus 4.63% for its weighted benchmark.
The pool has exposure to dividend-paying stocks as a means of diversifying its income stream. This positioning paid off for the period, as the Equity Income Fund contributed significantly to relative performance.
| DIVERSIFIED INCOME POOL PERFORMANCE AS OF December 31, 2011 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Diversified Income Pool1 | 6.15% | 2.18% | 3.49% | 5.60% | |
| Underlying Funds | Weight | 4.07% | 4.16% | 5.74% | 6.86% |
| Spectrum Income Fund | 60.0% | ||||
| Equity Income Fund | 20.0% | 12.05% | -0.72% | -0.96% | 4.07% |
| Balanced Fund | 20.0% | 7.06% | 0.90% | 2.24% | 5.11% |
| WBDEP Weighted Benchmark2 | 4.63% | 5.65% | 4.16% | 5.58% | |
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 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 — December 31, 2011
The Balanced Index Pool returned 6.28% versus 6.26% for its weighted benchmark.
In keeping with its index approach, the portfolio's performance was reflective of market activity, and results were in line with the weighted benchmark minus expenses.
| BALANCED INDEX POOL PERFORMANCE AS OF December 31, 2011 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 |
Since Inception3 (8/31/04)
|
||
|---|---|---|---|---|---|
| T. Rowe Price Balanced Index Pool1 | 6.28% | 1.08% | 2.19% | 4.75% | |
| Underlying Funds | Weight | 1.10% | 7.42% | 6.52% | 5.40% |
| U.S. Bond Index Fund | 40.0% | ||||
| Equity Index 500 Fund | 31.5% | 11.76% | 1.87% | -0.46% | 3.66% |
| Extended Equity Market Index Fund | 10.5% | 13.69% | -3.61% | 1.45% | 6.78% |
| International Equity Index Fund | 18.0% | 4.46% | -12.52% | -4.43% | 4.09% |
| WBBAX Weighted Benchmark2 | 6.26% | 1.75% | 2.61% | 5.32% | |
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 Capital U.S. Aggregate Index, an investment-grade bond benchmark; 31.5% Standard & Poor's 500 Index; 10.5% S&P Completion Index; and 18% 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 — December 31, 2011
The Moderate Growth Pool returned 7.99% versus 7.01% for its weighted benchmark.
All the underlying funds posted strong positive returns, particularly the Small-Cap Stock Fund, which benefited from increased risk appetite. The Spectrum Income Fund and International Growth & Income Fund had good relative results, while the Equity Income Fund weighed on relative results despite good absolute performance.
| MODERATE GROWTH POOL PERFORMANCE AS OF December 31, 2011 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Moderate Growth Pool1 | 7.99% | -1.68% | 1.55% | 4.79% | |
| Underlying Funds | Weight | 4.07% | 4.16% | 5.74% | 6.86% |
| Spectrum Income Fund | 30.00% | ||||
| Equity Index 500 Fund | 5.75% | 11.76% | 1.87% | -0.46% | 2.67% |
| Growth Stock Fund | 16.00% | 10.01% | -0.97% | 1.12% | 3.65% |
| Equity Income Fund | 16.00% | 12.05% | -0.72% | -0.96% | 4.07% |
| Mid-Cap Growth Fund | 3.00% | 10.81% | -1.21% | 5.48% | 7.51% |
| Mid-Cap Value Fund | 3.00% | 8.97% | -4.82% | 1.36% | 7.96% |
| Small-Cap Stock Fund | 5.25% | 16.80% | -0.09% | 3.72% | 7.07% |
| International Stock Fund | 9.00% | 6.35% | -12.33% | -2.07% | 4.33% |
| International Growth & Income Fund | 9.00% | 5.91% | -10.80% | -4.52% | 6.11% |
| Emerging Markets Stock Fund | 3.00% | 5.15% | -18.84% | 0.12% | 12.98% |
| WBMPP Weighted Benchmark2 | 7.01% | 0.89% | 1.59% | 4.82% | |
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 49% 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 21% 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 — December 31, 2011
The Growth Pool returned 9.81% versus 9.46% for its weighted benchmark.
All the underlying funds posted strong positive returns, particularly the Small-Cap Stock Fund, which benefited from increased risk appetite. The Spectrum Income Fund and International Growth & Income Fund had good relative results, while the Equity Income Fund weighed on relative results despite good absolute performance.
| GROWTH POOL PERFORMANCE AS OF December 31, 2011 |
Total Return4 | ||||
| Three Months | One Year | Five Years3 | Ten Years3 | ||
|---|---|---|---|---|---|
| T. Rowe Price Growth Pool1 | 9.81% | -4.07% | -0.43% | 4.08% | |
| Underlying Funds | Weight | 11.76% | 1.87% | -0.46% | 2.67% |
| Equity Index 500 Fund | 10.75% | ||||
| Growth Stock Fund | 21.50% | 10.01% | -0.97% | 1.12% | 3.65% |
| Equity Income Fund | 21.50% | 12.05% | -0.72% | -0.96% | 4.07% |
| Mid-Cap Growth Fund | 4.25% | 10.81% | -1.21% | 5.48% | 7.51% |
| Mid-Cap Value Fund | 4.25% | 8.97% | -4.82% | 1.36% | 7.96% |
| Small-Cap Stock Fund | 7.75% | 16.80% | -0.09% | 3.72% | 7.07% |
| International Stock Fund | 12.75% | 6.35% | -12.33% | -2.07% | 4.33% |
| International Growth & Income Fund | 12.75% | 5.91% | -10.80% | -4.52% | 6.11% |
| Emerging Markets Stock Fund | 4.50% | 5.15% | -18.84% | 0.12% | 12.98% |
| WBGRP Weighted Benchmark2 | 9.46% | -2.41% | -1.05% | 4.07% | |
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 70% Russell 3000 Index, a measure of the performance of the broad U.S. stock market, and 30% 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 — December 31, 2011
The Global Equity Pool returned 8.20% versus 7.30% for its weighted benchmark.
The Small-Cap Stock Fund provided a boost here, aided by increased risk appetite. The International Growth & Income Fund was a key contributor. A positive quarter for value stocks generated good absolute results for the Value Fund, though it lagged its benchmark somewhat.
| GLOBAL EQUITY POOL PERFORMANCE AS OF December 31, 2011 |
Total Return4 | |||
| Three Months | One Year |
Since Inception3 (6/30/08)
|
||
|---|---|---|---|---|
| T. Rowe Price Global Equity Pool1 | 8.20% | -8.87% | -3.46% | |
| Underlying Funds | Weight | 7.70% | -11.55% | -8.19% |
| Global Stock Fund | 23.5% | |||
| International Growth & Income Fund | 13.0% | 5.91% | -10.80% | -5.05% |
| International Equity Index Fund | 17.5% | 4.46% | -12.52% | -6.05% |
| Emerging Markets Stock Fund | 10.5% | 5.15% | -18.84% | -5.54% |
| Equity Index 500 Fund | 15.3% | 11.76% | 1.87% | 1.57% |
| Value Fund | 11.8% | 12.45% | -2.00% | 1.50% |
| Mid-Cap Growth Fund | 2.5% | 10.81% | -1.21 | 5.06% |
| Mid-Cap Value Fund | 2.5% | 8.97% | -4.82% | 4.26% |
| Small-Cap Stock Fund | 3.5% | 16.80% | -0.09% | 9.13% |
| WBGEP Weighted Benchmark2 | 7.30% | -6.86% | -2.15% | |
1 The current weights of the underlying funds became effective
on June 30, 2008. Performance prior to June 30, 2008 is based on the previously applied allocations of the underlying funds.
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.
