GuideStone to launch date target funds
DALLAS (BP)--GuideStone Financial Resources of the Southern Baptist Convention is expanding its investment choices for eligible participants with the Jan. 2 launch of MyDestination Funds. These five registered date target funds will be managed to specific retirement dates and may be suitable for investors of all ages looking to create or maintain a diversified age-appropriate retirement choice in a single fund.
Each of the MyDestination Funds is a diversified “fund-of-funds” with an asset allocation that gradually becomes more conservative as an investor approaches retirement. The five funds are managed to specific target dates and 15 years after retirement in 10-year increments -– 2005, 2015, 2025, 2035 and 2045 -– allowing investors simply to choose the year closest to their planned retirement.
The funds are designed for investors willing to bear additional expenses in exchange for automatic rebalancing. By investing in the MyDestination Funds, participants will incur the expenses of the funds in addition to those of the underlying funds. Investors may invest in the funds directly, except for the Global Bond Fund. MyDestination Funds also are subject to the risks of the underlying funds they hold.
According to GuideStone, MyDestination Funds will offer participants:
-- A simple retirement solution.
-- An age-appropriate, diversified portfolio that gradually adjusts as a participant’s retirement date approaches.
-- Access to professional management with automatic asset rebalancing.
-- A way to save time without sacrificing performance.
“We are offering these funds because of strong interest expressed by our participants and plans sponsors in recent market research and the growing acceptance of date target funds in the industry,” said John R. Jones, GuideStone’s chief operating officer. “We believe these funds will be an exciting addition to the GuideStone Funds lineup and will position us as the only registered mutual fund company offering Christian-based, socially screened date target funds.”
The MyDestination Funds will invest primarily in GuideStone Select Funds and utilize the same social screening process as all GuideStone Funds.
Rodric E. Cummins, GuideStone’s chief investment officer, said the “MyDestination Funds will offer “the power of a dynamic asset allocation methodology that rebalances regularly and allows an investor to remain in a single fund while maintaining an appropriate level of risk as the time horizon to retirement decreases. It is a simple, yet sophisticated one-stop solution for investors at all ages.
“We believe the MyDestination Funds series will be a popular investment choice,” Jones said, “and industry research shows that date target funds may be superior to the allocation that a participant might choose on his or her own. Of course, it is important for participants to make appropriate and consistent retirement contributions throughout their work career.”
MyDestination Funds will be available to all GuideStone retirement and retail participants. These funds will be available in three share classes -– GS4, GS6 and GS8. On Jan. 2, the funds will be launched with a $10 NAV (net asset value) and will pay dividends and distribute capital gains annually.
Additional information about MyDestination Funds will be available at www.GuideStone.org.