Hawkins declares 2011 as Year of Opportunity
March 3, 2011
DALLAS — Speaking from an Old Testament passage, GuideStone Financial Resources President O.S. Hawkins told trustees, “We are challenging our employees to make every effort this year to ‘see the glass half-full’ as we seize opportunities to enhance the financial security of our participants.” Trustees also heard a report from Chief Operating Officer John R. Jones.
Trustees met in regular session February 28-March 1 in Dallas.
Drawing from Numbers 14:24 which says, “…But My servant Caleb, because he has a different spirit, and has followed Me fully, I will bring into the land into which he went, and his descendants shall possess it.” Hawkins told trustees that “Caleb and Joshua had optimistic attitudes. They saw the glass half-full rather than half-empty as the other ten spies who had obstinate attitudes.”
Hawkins said, “Those who see a glass half-empty see a problem in every answer, while those who view the glass half-full find an answer in every problem. Organizations that see the glass half-empty often just play defense, and many of those are in decline. Organizations that see the glass half-full want to accomplish more and are on the offensive to succeed for the benefit of those they serve. We want to take every opportunity to succeed for our participants.”
Jones updated trustees on the program areas of GuideStone (investments, retirement, insurance, financial assistance and developmental initiatives).
“The dawn of 2010 brought a more optimistic view of the financial markets as our participants continued to recover value lost during the recent recession,” Jones told trustees as he reviewed GuideStone’s investment funds’ performance for 2010. “All GuideStone funds posted positive returns for the year. All Equity Select Funds posted double digit returns in 2010. Investors in well-diversified portfolios, such as GuideStone Funds Asset Allocation and date-target funds, realized what we feel are strong gains for the year.”
According to Lipper Rankings, nine of 12 GuideStone Select Funds in the GS4 class met or exceeded median returns within their respective peer universe, based upon risk-adjusted returns, for the one year ending December 31, 2010 (Please keep in mind that past performance does not guarantee future results.)
Three of GuideStone Funds received special recognition. For the five-year period ending January 31, 2011, GuideStone’s Extended Duration Bond Fund in the GS2 class was ranked number one among its peers by Lipper. For the one-year period ending January 31, 2011, both the MyDestination 2035 Fund and the MyDestination 2045 Fund were ranked number one for date-target funds.
“In addition, GuideStone Funds ranked 60 out of 205 mutual fund families in the most recent Fund Family Fiduciary Rankings prepared by fi360,” Jones said. This report ranks mutual fund families based upon the percentage of their individual funds that pass fi360’s due diligence screens. These screens include the fund's track record, assets, management tenure, style consistency, expense ratio, risk adjusted performance and performance relative to their peer group among other criteria.
“Contributions to retirement plans increased as employers and employees began to reinstate contributions to participants’ accounts that were reduced or eliminated during the recent economic downturn,” Jones said.
Turning to GuideStone’s medical plans, Jones commented on the continuing discussions relative to Healthcare Reform. “Although new healthcare reform legislation was signed into law, the long-term effects and the implementation of that law continue to be surrounded by uncertainty,” Jones said.
As appeals continue through the courts and uncertainties remain as to how it will be funded and what the legislation actually involves, GuideStone has teams studying the law and accompanying guidance, and is preparing for implementation.
In the financial assistance area, Jones reported good news concerning generous responses by individuals and churches that supported the financial assistance program, Mission:Dignity.
“Many retired Southern Baptist ministers and widows face uncertainties as to how they will pay their bills, if they’ll get their medicines or what they will eat. It can be a traumatic time for these dear servants of Christ. During this past year, Southern Baptists have continued to be Christ’s hands extended to provide financial assistance for those who need it most. Over 1,000 new donors made their first gift to Mission:Dignity during 2010,” Jones said.
The Mission:Dignity program provides financial assistance to over 2,000 retired ministers or their widows in crucial financial need.
Information concerning Mission:Dignity may be requested by calling GuideStone at 1-888-98-GUIDE (1-888-984-8433) or by sending an email to Mission:Dignity.
Jones also told trustees that participant utilization of the personalized financial advice service launched in 2009, GPS: Guided Planning Services* continues to increase. This free service allows participants to select investment funds for their retirement account at GuideStone and assess whether or not they are on track to meet their retirement savings goals. Participants may work individually through the online tool or make a telephonic appointment with a GuideStone investment adviser for personal assistance.
A major new initiative focused on establishing an enterprise risk management program. The goal of the program is to ensure risks are appropriately identified, assessed, prioritized, monitored and communicated.
“GuideStone has done a good job in the past to manage risks in our various business units. This new initiative will help us to take a macro-approach in coordinating our risk management efforts across our entire enterprise,” Jones said.
Trustees accepted the recommendation of their general officers nominating committee and elected Harold D. Vick, Florida, as chairman and Ronald L. Bryant, Northwest, as vice-chairman.
At the Monday evening dinner meeting, seven trustees were honored as they reached the end of their terms of service. Those receiving recognition were Gregory A. Bibb (Kentucky), Mary C. Dighton (Kansas-Nebraska), Robert A. Harris, Jr. (Virginia), James B. Henry (Florida), Darryl J. Hoychick (Louisiana), James R. Scrivner (Oklahoma), and Frankie J. Smitherman (Alabama).
The Lipper Rankings are calculated by Lipper Inc., a Reuters Company, which is 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 that the fund had high total returns.
As of December 31, 2010, the GS2 Class Extended Duration Bond Fund ended the one-year period ranked three of 137 funds, the three-year period two of 130 funds and the five-year period one of 123 funds. The MyDestination 2035 Fund ended the one-year period 10 of 96 funds and ended the three-year period 46 of 66 funds. The MyDestination 2045 Fund ended its one-year period ranked two of 95 and its three-year period 45 of 66 funds. All rankings are based upon risk-adjusted returns.
*Financial advice provided by GuideStone Advisors, a controlled-affiliate of GuideStone Financial Resources.
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 download a prospectus or call 1-888-98-GUIDE (1-888-984-8433). You should read the prospectus carefully before investing.
The Fund Family Fiduciary Rankings™ is a quarterly report on the major fund families. Fi360 leverages the technology used to determine the Fi360 Fiduciary Score™ for mutual funds and exchange-traded funds to establish a ranking for each family. Only shops with five or more funds with at least a three-year track record are considered in the report. Within each fund family, the percentage of funds that have either a “Passed” (Fi360 Fiduciary Score™ 0) or Appropriate” (Fi360 Fiduciary Score™ 1-25) classification is calculated. This percentage is then used to rank order the families. In the instances where two or more fund families tie (share the same percentage), preference is give to the shop with the greater number of funds offered. All fund share classes are considered in the rankings.
GuideStone Funds shares are distributed by BNY Mellon 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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