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.
The following pool performance update reflects fourth quarter 2009 performance and shows returns for pool allocations as of December 31, 2009.
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. All pools are subject to market risk, including possible loss of principal.
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, 2009
Money market yields remained near zero throughout the fourth quarter of 2009. Although the U.S. economy showed early signs of a recovery, the Federal Reserve left its short-term interest rate target at a historically low range of 0% to 0.25% while waiting for employment trends to improve. Returns for three-month Treasury bills, a barometer for money market rates, were modestly positive for the period. Short-term bonds posted better gains as investors pursued securities offering better yields than money markets could offer.
Returns for the portfolio were modest but stable in this low-interest rate environment and well ahead of the marginal advance for the benchmark. The portfolio's exposure to a diversified mix of short-term bonds added value. Specifically, an overweight to corporate bonds compared with the benchmark, and an underweight to Treasuries, added to results for the period.
| GIFT PRESERVATION POOL PERFORMANCE AS OF DECEMBER 31, 2009 |
Total Return | ||||
| Three Months | One Year | Five Years³ | Since Inception³ (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Gift Preservation Pool¹ | 0.52% | 7.23% | 3.51% | 3.29% | |
| Underlying Funds | Weight | 0.66% | 7.84% | N/A | N/A |
| Short-Term Income Fund | 100.0% | ||||
| WBGPP Benchmark² | 0.03% | 0.16% | 2.93% | 3.46% | |
T. Rowe Price Diversified Income Pool Performance — December 31, 2009
The U.S. economy appeared to be on a road to recovery in the final quarter of 2009, as leading indicators showed clear improvements. Yet the Federal Reserve, fearing a double-dip recession and looking to encourage a better employment picture, held interest rates close to zero for the period.
This combination of better economic trends and low interest rates benefited the stock market, particularly large-cap and growth shares. But the picture was more mixed for bonds. Money market yields offered investors little, with returns close to 0%. Meanwhile, longer-term Treasury yields increased as the economy improved; heavy new issuance also pushed yields up and prices down.
High yield bonds produced strong returns, capping their best year in history. Investment-grade corporate bonds and asset-backed securities—which are backed by credit card, auto loan, or other debt payments—produced more modest gains.
The portfolio posted a solid gain for the period and outperformed its weighted benchmark by a notable margin. Our positions in diversifying income-producing sectors, such as high yield bonds and dividend-paying stocks, enhanced relative results.
| DIVERSIFIED INCOME POOL PERFORMANCE AS OF DECEMBER 31, 2009 |
Total Return | ||||
| Three Months | One Year | Five Years³ | Since Inception³ (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Diversified Income Pool¹ | 3.02% | 23.25% | 3.63% | 4.99% | |
| Underlying Funds | Weight | 2.23% | 20.29% | 5.06% | 6.76% |
| Spectrum Income Fund | 60.0% | ||||
| Balanced Fund | 20.0% | 3.85% | 28.28% | 3.38% | 3.57% |
| Equity Income Fund | 20.0% | 5.35% | 25.62% | 0.70% | 4.03% |
| WBDEP Weighted Benchmark² | 1.65% | 11.64% | 3.75% | 4.58% | |
T. Rowe Price Balanced Index Pool Performance — December 31, 2009
The U.S. economy appeared to be on a road to recovery in the final quarter of 2009, as leading indicators showed clear improvements. Yet the Federal Reserve, fearing a double-dip recession and looking to encourage a better employment picture, held interest rates close to zero for the period.
This combination of better economic trends and low interest rates benefited the stock market, particularly large-cap and growth shares. Most market sectors had more room to recover after the steep losses that started the year, though information technology, health care, and consumer discretionary stocks were among the market's leaders. Financials gave back some of their earlier gains.
The picture was more mixed for bonds. Money market yields offered investors little, with returns close to 0%. Meanwhile, longer-term Treasury yields increased as the economy improved; heavy new issuance also pushed yields up and prices down. High yield bonds produced strong returns, capping their best year in history. Investment-grade corporate bonds and asset-backed securities—which are backed by credit card, auto loan, or other debt payments—produced more modest gains.
In this environment, the portfolio produced moderate gains for the period. 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 DECEMBER 31, 2009 |
Total Return | ||||
| Three Months | One Year | Five Years³ | Since Inception³ (8/31/04) | ||
|---|---|---|---|---|---|
| T. Rowe Price Balanced Index Pool¹ | 2.90% | 20.70% | 2.83% | 4.15% | |
| Underlying Funds | Weight | 0.23% | 6.63% | 4.97% | 4.85% |
| U.S. Bond Index Fund | 40.0% | ||||
| Equity Index 500 Fund | 36.0% | 6.00% | 26.33% | 0.19% | 2.04% |
| Extended Equity Market Index Fund | 12.0% | 4.98% | 36.69% | 2.17% | 5.30% |
| International Equity Index Fund | 12.0% | 1.60% | 30.42% | 3.71% | 6.65% |
| WBBAX Weighted Benchmark² | 3.19% | 20.61% | 3.26% | 4.63% | |
T. Rowe Price Moderate Growth Pool Performance — December 31, 2009
The U.S. economy appeared to be on a road to recovery in the final quarter of 2009, as leading indicators showed clear improvements. Yet the Federal Reserve, fearing a double-dip recession and looking to encourage a better employment picture, held interest rates close to zero for the period.
This combination of better economic trends and low interest rates benefited the stock market, particularly large-cap and growth shares. Most market sectors had more room to recover after the steep losses that started the year, though information technology, health care, and consumer discretionary stocks were among the market's leaders. Financials gave back some of their earlier gains.
The picture was more mixed for bonds. Money market yields remained close to 0%, and longer-term Treasury yields increased. High yield bonds produced strong returns, while investment-grade corporate bonds and asset-backed securities produced milder gains.
The portfolio's returns slowed from the prior quarter but remained solidly positive and notably outpaced the benchmark. Positive results within the income portion made a substantial contribution to the portfolio's outperformance, though results among our large-cap growth holdings were also relatively strong. The portfolio's position in the mid-cap growth market segment was a very slight detractor.
| MODERATE GROWTH POOL PERFORMANCE AS OF DECEMBER 31, 2009 |
Total Return | ||||
| Three Months | One Year | Five Years³ | Since Inception³ (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Moderate Growth Pool¹ | 4.78% | 32.45% | 2.89% | 2.83% | |
| Underlying Funds | Weight | 2.23% | 20.29% | 5.06% | 6.76% |
| Spectrum Income Fund | 30.0% | ||||
| Equity Income Fund | 17.5% | 5.35% | 25.62% | 0.70% | 4.03% |
| Growth Stock Fund** | 17.5% | 9.15% | 43.25% | 2.10% | 0.24% |
| Equity Index 500 Fund | 8.0% | 6.00% | 26.33% | 0.19% | -1.12% |
| International Growth & Income Fund | 6.0% | 1.69% | 34.39% | 3.90% | 4.94% |
| International Stock Fund** | 6.0% | 5.33% | 52.20% | 4.47% | 1.19% |
| Small-Cap Stock Fund | 6.0% | 4.96% | 38.46% | 2.09% | 5.24% |
| Mid-Cap Growth Fund** | 3.5% | 4.87% | 45.44% | 4.82% | 4.88% |
| Mid-Cap Value Fund** | 3.5% | 5.07% | 46.68% | 4.57% | 10.24% |
| Emerging Markets Stock Fund** | 2.0% | 8.16% | 85.07% | 13.84% | 11.98% |
| WBMPP Weighted Benchmark² | 3.69% | 22.32% | 2.70% | 2.78% | |
T. Rowe Price Growth Pool Performance — December 31, 2009
The U.S. economy appeared to be on a road to recovery in the final quarter of 2009, as leading indicators showed clear improvements. Yet the Federal Reserve, fearing a double-dip recession and looking to encourage a better employment picture, held interest rates close to zero for the period.
This combination of better economic trends and low interest rates benefited the stock market, particularly large-cap and growth shares. Most market sectors had more room to recover after the steep losses that started the year, though information technology, health care, and consumer discretionary stocks were among the market's leaders. Financials gave back some of their earlier gains.
The portfolio's returns were solidly positive and notably outpaced the benchmark. Positive results in the equity income segment added value, though the best results compared with the benchmark came from the large-cap growth segment. The portfolio's holdings in the mid-cap growth market segment were a slight detractor.
| GROWTH POOL PERFORMANCE AS OF DECEMBER 31, 2009 |
Total Return | ||||
| Three Months | One Year | Five Years³ | Since Inception³ (9/30/00) | ||
|---|---|---|---|---|---|
| T. Rowe Price Growth Pool¹ | 5.94% | 37.14% | 1.71% | 1.79% | |
| Underlying Funds | Weight | 5.35% | 25.62% | 0.70% | 4.03% |
| Equity Income Fund | 24.5% | ||||
| Growth Stock Fund** | 24.5% | 9.15% | 43.25% | 2.10% | 0.24% |
| Equity Index 500 Fund | 12.0% | 6.00% | 26.33% | 0.19% | -1.12% |
| Small-Cap Stock Fund | 9.0% | 4.96% | 38.46% | 2.09% | 5.24% |
| International Growth & Income Fund | 8.5% | 1.69% | 34.39% | 3.90% | 4.94% |
| International Stock Fund** | 8.5% | 5.33% | 52.20% | 4.47% | 1.19% |
| Mid-Cap Growth Fund** | 5.0% | 4.87% | 45.44% | 4.82% | 4.88% |
| Mid-Cap Value Fund** | 5.0% | 5.07% | 46.68% | 4.57% | 10.24% |
| Emerging Markets Stock Fund** | 3.0% | 8.16% | 85.07% | 13.84% | 11.98% |
| WBGRP Weighted Benchmark² | 5.17% | 29.23% | 1.31% | 0.21% | |
T. Rowe Price Global Equity Pool Performance — December 31, 2009
The U.S. economy appeared to be on a road to recovery in the final quarter of 2009, as leading indicators showed clear improvements. Yet the Federal Reserve, fearing a double-dip recession and looking to encourage a better employment picture, held interest rates close to zero for the period. This combination of better economic trends and low interest rates was a boon for the stock market, particularly large-cap and growth shares.
Recovery in the U.S. also encouraged economic improvement globally, and as a result, non-U.S. stocks produced mostly positive returns in the fourth quarter. Developed European and Asian markets generally rose, but Japanese stocks declined as a late-period U.S. dollar rebound versus the yen reduced returns in dollar terms. Emerging markets significantly outperformed developed markets, led by shares in Latin America.
The portfolio posted solid results in this favorable environment, approximately inline with its weighted benchmark index. Broadly speaking, the portfolio kept pace with benchmark results in most areas, though positioning in established, large-cap global stocks proved favorable and added value.
| GLOBAL EQUITY POOL PERFORMANCE AS OF DECEMBER 31, 2009 |
Total Return | |||
| Three Months | One Year | Since Inception³ (6/30/08) | ||
|---|---|---|---|---|
| T. Rowe Price Global Equity Pool¹ | 4.66% | 39.77% | -9.95% | |
| Underlying Funds | Weight | 6.41% | 44.77% | -17.75% |
| Global Stock Fund** | 23.5% | |||
| International Equity Index Fund | 17.5% | 1.60% | 30.42% | -10.64% |
| Equity Index 500 Fund | 15.3% | 6.00% | 26.33% | -6.50% |
| International Growth & Income Fund | 13.0% | 1.69% | 34.39% | -10.50% |
| Value Fund | 11.8% | 4.68% | 37.15% | -4.92% |
| Emerging Markets Stock Fund** | 10.5% | 8.16% | 85.07% | -10.24% |
| Small-Cap Stock Fund | 3.5% | 4.96% | 38.46% | 1.70% |
| Mid-Cap Growth Fund** | 2.5% | 4.87% | 45.44% | -4.06% |
| Mid-Cap Value Fund** | 2.5% | 5.07% | 46.68% | 2.92% |
| WBGEP Weighted Benchmark² | 4.72% | 35.41% | -8.21% | |
