GuideStone Enhances Participants' Financial Security
March 2, 2006
DALLAS – The trustees of GuideStone Financial Resources of the Southern Baptist Convention met in regular session Monday and Tuesday, Feb. 27-28, in Dallas. President O. S. Hawkins told the trustees, “Each of our ministry areas contributed to enhancing the financial security of our participants in 2005.”
Trustees also heard reports from John R. Jones, chief operating officer, and Jeffrey P. Billinger, treasurer and chief financial officer.
President Hawkins reminded the trustees of GuideStone’s vision statement which says, “GuideStone Financial Resources exists to honor the Lord by being a life-long partner with its participants in enhancing their financial security.” Hawkins explained the commitment of GuideStone’s staff to do their best in serving those who serve the Lord. He addressed the trustees using Ecclesiastes 9:10 which says, “Whatever your hand finds to do, do it with all your might.” Hawkins said, “In order to accomplish our vision, we must demonstrate insight, initiative and intensity.”
Jones then updated trustees on how the program areas of GuideStone (retirement, investments, insurance and financial assistance) enhanced participants’ financial security.
“We have completed a year that added value to our participants’ accounts and provided discounts to many of our personal plan participants in life and health products,” he said. Jones provided additional results related to GuideStone’s retirement and savings ministries. “Retirement contributions and rollovers into our retirement plans grew by 7% over last year. Additionally, over 5,000 participants have taken advantage of using the Morningstar® Retirement ManagerSM software to help them in their retirement planning and asset allocation and over 30% have implemented advice provided by this on-line tool.”
Of particular note was the success of GuideStone’s retirement investment funds. For the three years ending Dec. 31, 2005, 10 of the 13 GuideStone Funds mutual funds (GS4 class) were ranked in the top half of their peer universe by Lipper. Lipper Inc., a Reuters Company, is a nationally recognized organization that compares the total return performance of mutual funds within a universe of funds having similar investment objectives. In addition, for each of the three-year time periods ending Dec. 31, 2005, and Jan. 31, 2006, the Flexible Income Fund (GS4) was ranked first by Lipper in the Short Investment Grade Debt category (out of 179 and 181 funds respectively). Please keep in mind that past performance does not guarantee future results.
In updating trustees related to GuideStone’s medical plans, Jones said, “Our most significant improvement area for 2005 was in our medical plans. While medical inflation is running at about 8-10% per year, over 40% of our personal medical plan participants received a rate decrease in 2005 and over 57% received a rate decrease in January of this year. In addition to the rate decreases, participants also received increased benefits such as copays for office visits at medical specialists and enhanced wellness benefits. The combination of adding over 1,200 new participants to our plans, using a single provider network through Highmark Blue Cross Blue Shield® and pharmacy discounts through Medco has significantly helped to stabilize our medical plan rates.”
In the Financial Assistance area, Jones reported a banner year for gifts to the Adopt An Annuitant program. With gifts of $1.4 million from the Cooperative Program and a special trust of $1.9 million from the Louisiana Baptist Convention, cash and deferred gifts to the program totaled over $7.7 million. The entire Cooperative Program allocation for GuideStone is spent in its relief ministry without any expense applied. Gifts from individuals and churches to the Adopt An Annuitant program supplement the Convention allocation. Information concerning the Adopt An Annuitant program may be requested by calling GuideStone’s toll-free telephone number, 1-888-98-GUIDE (1-888-984-8433) or by emailing the Financial Assistance department.
Billinger reported total assets were $8.9 billion as of Dec. 31, 2005, compared to $8.1 billion at Dec. 31, 2004. GuideStone reached an additional milestone with total assets crossing the $9 billion mark as of the end of January 2006. Reporting on the results of the annual external audit, Billinger told trustees, “The independent auditor, PricewaterhouseCoopers, provided a clean audit opinion with no detection of fraud or concern for such and no concern with internal controls.”
Trustees accepted the recommendation of their general officers nominating committee and elected for a one-year term William T. Patterson, Mississippi, as chairman, and Robert L. Sorrell, Tennessee, as vice-chairman.
At the Monday evening dinner meeting, three trustees were honored for their years of service to GuideStone. They are: K. Milton Higgins of California, John J. Mulligan of New York and Bobby G. Sorrells of Alabama.
The next scheduled meeting of GuideStone trustees is July 31-August 1, 2006.
For the periods ending Dec. 31, 2005 and Jan. 31, 2006, Lipper ranked the GS4 share class of the Flexible Income Fund 7th (out of 227) and 2nd (out 226) in the Short Investment Grade Debt category.
Past rankings are no guarantee of future rankings. Investment return and the value of an investor’s shares will fluctuate. Shares may be worth more or less than original cost when redeemed. The Lipper Rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds within a universe of funds having similar investment objectives. Rankings are based on total return performance with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings are relative to a peer group and do not necessarily mean the fund had high total returns.
You should carefully consider the investment objectives, risks, charges and expenses of GuideStone Funds before investing. For a copy of the prospectus with this and other information about the funds please call 1-888-98-GUIDE (1-888-984-8433) or download a prospectus (pdf). You should read the prospectus carefully before investing.
GuideStone Funds shares are distributed by PFPC Distributors, Inc., a registered broker-dealer and underwriter of the funds, 760 Moore Rd., King of Prussia, PA 19406. GuideStone Funds is a controlled-affiliate of GuideStone Financial Resources.
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