GuideStone Financial Resources of the Southern Baptist Convention is expanding its investment choices for eligible participants with the Jan. 2 launch of MyDestination 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 –
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.