When you make your gifts to the Program, you recommend one or more pools in which to invest your contributions, and you can request a change in your investment selection at any time with no fee. Each pool comprises no-load mutual funds managed by T. Rowe Price Associates, Inc., an investment firm founded in 1937.1
T. Rowe Price is noted for an exceptional combination of investment management excellence, world-class service, and guidance. The T. Rowe Price investment approach strives to achieve superior performance while considering risks incurred versus potential rewards. Click Pool Performance to view investment performance over various time periods.
The investment pools were established to target specific risk/return objectives and are listed from lowest risk/return potential to highest risk/return potential. In April 2004, the Board of Directors of the Program approved changes to the pools' investment allocations, the renaming of one pool to better reflect its strategy, and the addition of a fifth investment pool. The revised allocations are shown below.
T. Rowe Price Gift Preservation Pool
Emphasizing a mix of a money market fund and a well-diversified bond fund, this pool utilizes a lower-risk investment approach. The pool's primary objective is to conserve principal while generating the highest possible current income. The value of the pool and its yield, however, fluctuate with interest rate changes and other market conditions. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although it seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in a money market fund.
| 80.0% Summit Cash Reserves Fund |
| 20.0% Short-Term Bond Fund |
T. Rowe Price Diversified Income Pool
Using a moderate-risk approach, this pool seeks a high level of current income with capital appreciation by primarily investing in funds that hold fixed-income instruments and income-oriented stocks paying high dividends. This mix of funds offers exposure to equities while substantially diversifying in the fixed-income market to help reduce the risk and volatility typically associated with the equity market.2 The Diversified Income Pool provides a higher income-oriented option through a 60%/40% fixed-income/equity allocation.
| 60.0% Spectrum Income Fund |
| 20.0% Equity Income Fund |
| 20.0% Balanced Fund |
T. Rowe Price Balanced Index Pool
(New Investment Pool as of August 31, 2004)
This intermediate-risk pool offers the benefits of lower fees inherent in a passive investment approach. The Balanced Index Pool seeks to match the composite performance of the Lehman Brothers U.S. Aggregate Index, the Standard & Poor's 500® Index, Standard & Poor's Completion IndexSM,3 and the FTSE International Limited Developed ex North America IndexTM. It offers a combination of moderate income, some long-term growth potential, and access to foreign markets.
| 40.0% U.S. Bond Index Fund |
| 37.5% Equity Index 500 Fund |
| 12.5% Extended Equity Market Index Fund |
| 10.0% International Equity Index Fund |
T. Rowe Price Moderate Growth Pool
This moderately aggressive pool focuses on a mix of both domestic and international stocks4 while seeking diversification through holdings in a well-blended bond fund.2 The pool's strategy is to balance volatility risk through a combination of stock funds that have the potential for gaining high returns in the equity markets and domestic and foreign bonds.
| 30.0% Spectrum Income Fund |
| 10.0% Equity Index 500 Fund |
| 17.5% Growth Stock Fund |
| 17.5% Equity Income Fund |
| 4.0% Mid-Cap Growth Fund |
| 4.0% Mid-Cap Value Fund |
| 7.0% Small-Cap Stock Fund |
| 5.0% International Stock Fund |
| 5.0% International Growth & Income Fund |
T. Rowe Price Growth Pool
The most aggressive of all the pools, this choice seeks long-term capital appreciation by broadly investing in mutual funds primarily focused on both domestic and international equity markets.4 This pool's strategy is based on the understanding that the volatility associated with equity markets also offers the greatest potential for long-term capital appreciation.
| 15.0% Equity Index 500 Fund |
| 25.0% Growth Stock Fund |
| 25.0% Equity Income Fund |
| 5.0% Mid-Cap Growth Fund |
| 5.0% Mid-Cap Value Fund |
| 10.0% Small-Cap Stock Fund |
| 7.5% International Stock Fund |
| 7.5% International Growth & Income Fund |
1 The international funds are managed by T. Rowe Price International, Inc.
2 Diversification cannot protect against loss in a declining market or assure a profit.
3 "Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500", "500", and "Standard & Poor's Completion Index" 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 advisability of investing in the Product.
The Program's Board of Directors has ultimate authority over investment allocations.
Request a prospectus for any of the funds in which the pools invest by calling 1-800-564-1597. Prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
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