Institutional Investor

Performance + Values

An Investment Philosophy Founded on Christian Values

Leverage GuideStone’s award-winning fund family to invest according to the values of your ministry.1

Bringing together values-based principles and a strong focus on risk-adjusted performance, GuideStone® is committed to providing you with a broad range of investment strategies to help meet the financial goals of your organization.

As the nation's largest faith-based mutual fund family2, GuideStone Funds® maintains a strict adherence to GuideStone’s faith-based investment policy. The unique combination of GuideStone’s scale and Christian core allows GuideStone Funds to offer investment options specifically tailored to the clients we serve — ministries focused on spreading the Gospel around the world. Our mission at GuideStone is to partner with you in a way that allows your ministry to thrive and we appreciate your interest in getting to know us better. Learn more about our investment industry recognition as a Lipper Fund Award Recipient from Refinitiv.

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As the investment adviser to GuideStone Funds, GuideStone Capital Management, LLC believes:

Manager-of-Managers In-Depth Research Christian Orientation

Active
Active portfolio management via a manager-of-managers investment approach adds value over a full market cycle.

Intentional
Broad diversification and an emphasis on intentional risk produces attractive risk-adjusted returns.

Christian
Innovative and competitive investment options can be created that align with Christian values.

The GuideStone Investment Approach

GuideStone’s staff strives to provide investment solutions that allow our clients to invest their own time into the ministry to which they were called, not into investment management.

GuideStone’s investment philosophy is tailored to the clients we serve, and to their unique needs. We believe attractive risk-adjusted returns can be achieved through a long-term, fundamental approach that identifies best-in-class managers and allocates capital among them — all while remaining committed to Christian values.

GuideStone leverages this 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

Construct Portfolio

Manager selection

Once the Fund’s risk/return profile has been established, the portfolio 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:

Qualitative


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

Quantitative


  • 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 find out how we can assist you to achieve your investment goals, contact us today.

Rethink your perspective on faith-based investing.


Do well. Do right. Do MORE.™

Awarded for performance guided by Christian values — this is what doing more looks like.

Values win again. The entire GuideStone Funds family won the Lipper Fund Award for 2019 Best Overall Small Company over 3 years (out of 29 eligible as of November 30, 2018). Based on risk-adjusted total return.

Faith-based Investment Screen

GuideStone Funds does not invest in any company that is publicly recognized as being in the following industries:

Alcohol | Tobacco | Gambling | Pornography | Abortion

or any company whose products, services or activities are publicly recognized as being incompatible with the moral and ethical posture of GuideStone.


Engaged Shareholder Advocacy

GuideStone seeks to influence how companies interact with their employees, customers and communities.

GuideStone partners with like-minded organizations to promote social change via responsible and sustainable business practices and a strong corporate culture of ethics. We have an ongoing letter writing and shareholder advocacy campaign that is designed to influence corporations for the greater good.

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