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Money Market Reform

Money Market Reform and the GuideStone Money Market Fund.

In 2014, the Security and Exchange Commission adopted amendments to Rule 2a-7 under the Investment Company Act of 1940, which governs the operation of U.S. money market funds. The changes stem from the 2008 Financial Crisis and are designed to improve the resiliency of money market funds during periods of market stress.

Under amended Rule 2a-7, government money market funds may allow both retail and institutional investors; and may seek to maintain a stable $1.00 net asset value ("NAV"). With this being the current structure of the GuideStone Money Market Fund, it was decided to convert the GuideStone Money Market Fund to a government money market fund in order to make this a seamless transition for our investors. A government money market fund is a money market fund that invests at least 99.5% of its total assets in U.S. government securities, cash and/or repurchase agreements that are fully collateralized by U.S. government securities or cash.

How does this affect the GuideStone Money Market Fund?

  • On May 1, 2016 the GuideStone Money Market Fund converted to a government money market fund.
  • Because the GuideStone Money Market Fund is a government money market fund, shareholders continue to have access to a money market fund which seeks to maintain a stable NAV of $1.00 per share.
  • As a government money market fund, the GuideStone Money Market Fund continues to allow both retail and institutional investors in the Fund.
  • As of May 1, 2016 the GuideStone Money Market Fund invests 99.5% or more of its total assets in debt securities issued or guaranteed as to principal or interest by the U.S. government, or by U.S. government agencies or instrumentalities; repurchase agreements that are collateralized fully by cash items or U.S. Treasury and U.S. government securities; and cash.