GuideStone Launches New Fund That Offers Diversification Aiming to Address Increased Market Volatility
Dallas, TX August 14, 2017— GuideStone Funds™ launched its new Strategic Alternatives Fund last month. The fund is available to retirement plan participants in GuideStone’s employer-sponsored retirement plans as well as other eligible GuideStone® investors and financial advisors.
The fund seeks to provide absolute returns with both lower volatility than, and low correlation with, traditional equity and fixed-income markets. The term “absolute returns” means that an investment aims to generate a consistently positive single digit total return in most market environments. When speaking of the fund having a low correlation to equity (stock) and fixed-income (bond) markets, it is expected to have much lower price variability than those asset classes.
Investors interested in alternatives investing are generally looking for choices beyond fixed-income or equity investments for additional diversification.
“Diversification in an environment of rising volatility is absolutely critical, but the one thing we don’t want investors to do is overreact to short-term moves in the market,” said David S. Spika, chief strategic investment officer of GuideStone Financial Resources®. “There is going to be a correction at some point, but we don’t want investors to let short-term moves affect their long-term investment strategy.
“Traditional diversification is not always effective, as we saw in 2008. And diversification is not a guarantee against loss. Alternative investments, however, are a way to provide additional types of exposure to hedge risk more effectively. That is the impetus for the GuideStone Strategic Alternatives Fund, which addresses the desire many investors have to potentially lower their risk, with the possibility for more consistently positive returns.”
Like all GuideStone Funds, the Strategic Alternatives Fund is subject to GuideStone’s socially responsible investing policy, which states that GuideStone Funds do not invest in any company that is publicly recognized as being in the alcohol, tobacco, gambling, pornography or abortion industries or any company whose products, services or activities are publicly recognized as being incompatible with the moral and ethical posture of GuideStone. Additionally, as with the other GuideStone Funds, the Strategic Alternatives Fund is actively managed. GuideStone believes the risk-managed and diversifying exposures in the fund cannot be replicated by passive investment approaches.
“We designed the Strategic Alternatives Fund to leverage the skill sets of multiple sub-advisers who focus in different areas of the capital markets where we think there are meaningful opportunities for gain,” Spika said.
Retirement plan and other retail investors who are interested in learning how to incorporate the Strategic Alternatives Fund into their portfolios can email or call GuideStone Customer Solutions at info@GuideStone.org or 1-888-98-GUIDE (1-888-984-8433). Investors in the MyDestination Funds® will have the Strategic Alternatives Fund included in the investment mix as investors approach the target date.
About GuideStone Funds
GuideStone Funds is the nation's largest Christian-screened mutual fund family, providing a broad range of investment strategies to meet the financial goals of both individual and institutional investors. With more than $11.6 billion in assets as of June 30, 2017, Dallas-based GuideStone Funds offers investors the opportunity to invest in its award-winning faith-based funds. The company uses a manager-of-managers investment approach which is intended to benefit the investor by providing access to multiple, proven investment management firms within a single investment fund, potentially maximizing returns and seeking to reduce risk. GuideStone Funds does not invest in any company that is publicly recognized as being in the alcohol, tobacco, gambling, pornography or abortion industries or any company whose products, services or activities are publicly recognized as being incompatible with the moral and ethical posture of parent company GuideStone Financial Resources. Visit GuideStoneFunds.com for more information.
Investors should carefully consider the investment objectives, risks, charges and expenses of the GuideStone Funds before investing. A prospectus with this and other information about the Funds may be obtained by calling 1-888-GS-FUNDS (1-888-473-8637) or downloading one at GuideStoneFunds.com. It should be read carefully before investing.
GuideStone Funds shares are distributed by Foreside Funds Distributors, LLC, which is not an advisor affiliate.
There can be no guarantee that any strategy will be successful. Investing involves risk, including potential loss of principal. Past performance is no guarantee of future results.
Diversification does not ensure a profit or protect against a loss.
The alternative investment strategies that the fund pursues are complex and may involve greater risk than traditional investments (stocks, bonds and cash). The performance of alternative investments is not expected to correlate closely with more traditional investments; however, it is possible that alternative investments will decline in value along with equity or fixed-income markets, or both, or that they may not otherwise perform in accordance with expectations. Alternative investments can be highly volatile, are often less liquid, particularly in periods of stress, are generally more complex and less transparent, and may have more complicated tax profiles than traditional investments. In addition, the performance of alternative investments may be more dependent on a sub-adviser’s experience and skill than traditional investments. The use of alternative investments may not achieve the desired effect.
Foreign currencies and emerging markets involve certain risks such as currency volatility, political and social instability, and reduced market liquidity. Short sales by a fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. Leverage may increase the risk of loss and cause fluctuations in the market value of the fund’s portfolio to have disproportionately large effects or cause the NAV of the fund generally to decline faster than it would otherwise. To the extent that the investment advisor misjudges current market conditions, the fund’s volatility may be amplified by its use of derivatives and its ability to anticipate price movements in relevant markets, underlying derivative instruments and futures contracts. The fund’s currency investment strategy may be impacted by currency exchange rates, which can fluctuate significantly over short or extended periods of time. These changes may be caused by governmental or political factors that affect the value of what the fund owns and its share price. The fund may experience high portfolio turnover, which may result in higher costs and capital gains. The fund is a recently formed mutual fund and has a limited history of operations. There can be no assurances that its objective will be met.
The MyDestination Funds® (“Funds”) attempt to achieve their objectives by investing in the GuideStone Select Funds and other investments. The Funds are managed to a retirement date (“target date”) by adjusting the percentage of fixed-income securities and equity securities to become more conservative each year until reaching the retirement year and then approximately 15 years thereafter. The target date in the name of the Funds is the approximate date when an investor plans to start withdrawing money. The expense ratio for the Funds includes the expenses of the underlying Select Funds. The principal risks of the Funds will change depending on the asset mix of the Select Funds in which they invest. You may directly invest in the Select Funds and other investments. The Funds’ value will go up and down in response to changes in the share prices of the investments that they own. The amount invested in the Funds is not guaranteed to increase, is not guaranteed against loss, nor is the amount of the original investment guaranteed at the target date. It is possible to lose money by investing in the Funds.
You should carefully consider the investment objectives, risks, charges and expenses of the GuideStone Funds before investing. A prospectus with this and other information about the Funds may be obtained by calling 1-888-GS-FUNDS (1-888-473-8637) or downloading one. It should be read carefully before investing.
GuideStone Funds shares are distributed by Foreside Funds Distributors LLC, not an advisor affiliate. GuideStone Capital Management, LLC, an affiliate of GuideStone Financial Resources, provides investment advisory services for the funds.