How We Invest

Performance + Values

It's All About the Values

Offer your clients more with the nation’s largest faith-based mutual fund family.1

ESG and SRI investing has skyrocketed, with a 38% increase in AUM since 20162. Approximately one-fourth of all assets under professional management (~$12 trillion) in the United States incorporate responsible investment strategies2.

Finding ESG and SRI investment alternatives for your clients isn’t a challenge — until you enter the Christian-values space. There are few alternatives that take a Christian faith-based investment approach to its funds. GuideStone Funds®, the nation’s largest faith-based mutual fund family1, has done just that for almost two decades.

With GuideStone®, you get more than values. You have available one of the best-performing mutual fund families, confirmed by the 2019 Lipper Fund Award3.

Offer your clients more … more values + more performance. Gain a new perspective with a differentiated offering: GuideStone Funds.

Learn more about Why We Screen and our Investing Principles.

GuideStone Funds provides a performance-driven, faith-based approach to investing.

Why we believe faith-based investing matters.

Investors today increasingly want to align their personal values with their financial investment choices without compromising performance. We provide the faith-based investor the opportunity to invest based on conviction, as we believe our faith-based values do impact the world for the better. GuideStone has shown those values can also shape our investment portfolio. And the 200,000 participants we serve agree.

The marketplace drives demand. Here are a few eye-opening stats from a survey conducted for Natixis Investment Managers:4

Our investment philosophy at GuideStone is simple: we believe attractive risk-adjusted returns may be achieved through a long-term, fundamental approach that identifies best-in-class managers and optimally allocates capital among them — all while remaining committed to Christian values.

Consider the GuideStone Investment Approach

We leverage our investment philosophy to establish a disciplined, multi-step investment process.

Define Investment Objective

When defining a Fund’s investment objective, GuideStone seeks to:

  • Establish the Fund’s purpose, objective and structure
  • Define the Fund’s investable universe
  • Determine allowable securities and exposures
  • Establish investment suitability and principal investment strategies
  • Finalize the Fund's benchmark

Identify Risk/Return Profile

After defining the investment objective, we then identify the Fund’s risk/return profile, which involves:

  • Identifying potential risks across the investable universe
  • Understanding the absolute risk of both the Fund and its benchmark
  • Defining the desired characteristics of relative risk versus the Fund’s benchmark
  • Establishing reasonable return expectations for the Fund

Fund Construction

Manager selection

Once the Fund’s risk/return profile has been established, the Fund construction process begins. GuideStone employs extensive industry knowledge and supplemental quantitative screening to narrow the broad manager universe and identify candidates with strong value propositions.

In-depth due diligence is then performed through rigorous qualitative and quantitative assessments on each investment manager, portfolio management team and investment strategy. This allows us to develop a short list of managers and strategies that align with targeted Fund characteristics and, ultimately, select what we believe to be best-in-class managers for inclusion in the Fund.

While both qualitative and quantitative research is integral to this process, qualitative factors account for 80% of our manager selection decision-making process.

Manager optimization

Optimization is a key step in the investment process. Once the Fund’s underlying managers have been identified, GuideStone conducts numerous simulations – analyzing various manager combinations across historical time periods – to evaluate hypothetical Fund performance and characteristics against established objectives and risk/return targets. In addition, it is critically important to anticipate how various manager composites may perform into the future – holdings-based analytics as well as risk-factor decomposition assist in this determination.

The resulting target manager weightings are optimized in alignment with the Fund’s established risk/return profile, with the goal of enhancing risk-adjusted returns for investors.

Ongoing Management

Extensive ongoing evaluation occurs at both the manager and Fund levels. Much like manager selection and optimization, we assess both qualitative and quantitative factors, which include, but are not limited to:


  • Implementation of investment process
  • Adherence to investment process
  • Compliance with investment mandate
  • Onsite due diligence visits


  • Alignment with risk/return expectations
  • Validation of target allocations
  • Relevance of investment approach in current market environment
  • Evaluation of performance, team structure and current market conditions with each manager

To learn how you can sell our funds to your clients, contact us today.

Rethink your perspective on faith-based investing.

Leverage the nation's largest faith-based mutual fund family.1

Learn how you can also Do well. Do right. Do MORE™. Talk with a GuideStone Funds expert today: