1. GuideStone Funds Investment Philosophy
Multidiversification
GuideStone Funds Investment Philosophy
Multi-asset
Multi-style
Multi-manager
Diversification should not just apply to the number of stocks or bonds in a portfolio. That is why the GuideStone Funds investment philosophy incorporates a multi-diversification approach. This philosophy is built around three strategies:
Multi-asset
Multi-style
Multi-manager
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2. Multi-asset Small Cap Int’l Bonds Large Cap Multidiversification
We have three levels of diversification built into our funds.
Multi-asset: Investing in the stock of just one company can be risky. No two stocks perform exactly alike, so combining stocks from many different companies can help diffuse the risk of any single stock’s behavior. As well, several different asset classes — such as stocks and bonds — can also be combined to provide additional diversification because asset classes tend to act differently.
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3. Multi-asset Multi-style
Multidiversification
Small
Cap
Int’l
Multi-asset
Bonds
Index
Large
Cap
Growth
Multi-style: Investment managers practice different investment styles, such as growth and value investing. Combining lots of different managers with differing styles softens the impact when one or more styles go out of favor.
Multi-style
Value
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4. Multi-asset Multi-style Multi-manager
Multidiversification
Small
Cap
Int’l
Multi-asset
Bonds
Index
Large
Cap
Mgr. 1
Growth
Multi-manager: As the saying goes, “Two heads are better than one.” Combining many managers can help neutralize the under-performance of any single manager.
Multi-style
Value
Mgr. 2
Mgr. 3
Multi-manager
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5. GuideStone Funds Investment Philosophy
Multidiversification
GuideStone Funds Investment Philosophy
Greater diversification
Complimentary investment philosophies
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6. Manager Selection Process
Multidiversification
Manager Selection Process
Identify fund’s need
Identify managers with needed investment strategies and portfolio characteristics
Investment
Manager
Universe
Through proprietary and secondary research, develop a short list of candidates
Continual monitoring and evaluation of investment managers and fund structure
Comprehensive due diligence is conducted on firms of interest
Develop in-depth understanding of investment strategy and process
Onsite visits by both
parties for analysis
Final assessment of information
Manager
selection
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7. Multidiversification
Diversification does not guarantee a profit or insure an investor against a loss of investment principal.
Small stocks are generally riskier than large company stocks due to greater volatility and less liquidity.
Foreign securities may involve additional risks, social and political instability, reduced market liquidity and currency volatility.
Mandatory slide — cannot be hidden
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8. Multidiversification
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 GS-FUNDS ( ) or downloading one at It should be read carefully before investing.
GuideStone Funds are made available through GuideStone Financial Services, member FINRA. Shares of GuideStone Funds are distributed by Foreside Funds Distributors LLC, not an advisor affiliate. GuideStone Funds and GuideStone Financial Services are controlled-affiliates of GuideStone Financial Resources.
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