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GuideStone trustees hear reports, mark Year of Innovation

GuideStone® President O.S. Hawkins told trustees that organizations typically adapt by one of two methods: imitation or innovation. Citing the need to be innovative to continue to serve GuideStone's participants well, Hawkins showed from Nehemiah how people of innovation must face up, team up, gird up and look up to achieve their goals.

"We want to achieve a culture of innovation at GuideStone," Hawkins said, "so that we are able to meet the needs of our participants today and anticipate the needs of our participants as we seek to honor the Lord by being their lifelong partner in enhancing their financial security."

In addition to the annual theme, trustees heard reports from ministry areas and celebrated eight retiring trustees.

Trustees met in regular session February 27–28 in Dallas.

Retirement and Investments

Chief Operating Officer John R. Jones offered a report on the organization's work through 2016. Organizational assets ended the year at $13.3 billion, continuing the slow recovery from the trough in the market in February 2009 during the 2008–09 economic downturn. Assets grew more than $570 million in 2016, despite market volatility.

Jones told trustees that GuideStone Funds™ ranked in the top third of all mutual fund families according to fi360, ranking 79 out of 243 mutual fund families as of December 31, 2016, based on a number of criteria, including assets under management, organizational stability, style and asset class consistency, performance relative to peers and expense ratios. Additionally, GuideStone Funds performed well in both Lipper and Morningstar scores.

"This reflects so positively on both the Kingdom and on Southern Baptists," Jones said, emphasizing that the funds' Christian screening does not hamper performance for the funds. "The Extended-Duration Bond Fund is one of our most-recognized funds, ranking No. 1 in its category in the 1-, 5- and 10-year periods in 2016."

The Extended-Duration Bond Fund Lipper Rankings, based on total return, in the Corporate Debt Funds: A Rated category for the Institutional class as of December 31, 2016, ranked 1 in the category for the 1-year (out of 46 funds), 5-year (out of 38 funds) and 10-year (out of 30 funds) periods. For the 3-year period, it ranked 7 out of 44 funds.

Total retirement plan participants — defined as all participants with an account balance — continued to grow in 2016, up to 182,000. Retirement contributions were up 5.1 percent in 2016 compared to 2015.

GuideStone's efforts to offer the funds through intermediary platforms accelerated during 2016. Inflows to the funds from the platforms grew to $144 million in 2016. Many Southern Baptists and evangelical Christians interested in investing in GuideStone Funds work through financial advisors who are able to access the funds through these platforms.

"This response underscores the early success that we've had in opening up our mutual funds to like-minded investors," Jones said.

Insurance

Jones told trustees that staff throughout 2016 worked to aggressively manage costs, reducing expenses in life, disability, dental and health plans by 6 percent during 2016, which helped partially offset higher-than-expected claims in 2016, especially catastrophic and in-hospital claims. Group Plans enrollment is up 4.6 percent year-over-year, and total medical plans enrollment was positive for the year.

In the Property & Casualty program, GuideStone Agency Services had a 98 percent retention rate in 2016, while adding 177 new accounts. The hit rate, which measures the number of new accounts relative to bids, was 73 percent in 2016, significantly higher than the industry average.

Additionally, agents for GuideStone were recognized by Brotherhood Mutual Insurance Company for their sales success.

"Brotherhood Mutual has been a wonderful partner," Jones said. "They're focused on the local church, understanding the challenges that budget and finance committees have."

Mission:Dignity

Mission:Dignity reported a record year in 2016. Mission:Dignity Sunday drove the largest July on record with 821 new donors and more than $1 million received; 8,400 individuals, churches, Sunday school classes and others gave to Mission:Dignity in 2016, up 20 percent over 2015. Staff processed more than 39,000 gifts during the year and recorded more than 2,400 new donors making a first-time gift.

Mission:Dignity ended 2016 with total gifts through all sources exceeding $7.5 million.

Mission:Dignity provides financial assistance to retired Southern Baptist pastors and their widows. The neediest couples, with at least 25 years of paid, Southern Baptist ministerial assistance, can receive up to $600 each month in assistance. $250 gift checks were mailed to more than 1,700 eligible recipients in early December. Recipients report the gift checks, a tradition since 1945, allow them to buy Christmas gifts, give to the Lottie Moon Christmas Offering or purchase necessities. One recent couple wrote to say that thanks to the Christmas check, they were able to purchase a new washing machine after their old one unexpectedly broke in late November.

For the first time in more than a decade, there was a small increase in the number of recipients in the ministry. Pastors and others who know a retired Southern Baptist minister or widow in need can refer them to Mission:Dignity by calling 1-888-98-GUIDE (1-888-984-8433) or by visiting MissionDignity.org.

"We continually strive to better uncover individuals and couples who need us to come alongside them and provide some semblance of financial assistance," Jones said. "We are privileged to have that opportunity."

Budget

In December, the 2017 budget was approved by trustees; it represented a 10 percent reduction from the 2016 approved budget and was down versus actual expenditures. Within the budget for 2017, management has continued to invest in staff development, as well as positioned GuideStone to invest in growth opportunities while providing quality service for participants.

Farewells

GuideStone trustees bid farewell to eight trustees whose terms of service have ended. Staff and other trustees expressed their gratitude for the tenures of Ronald E. Brown (Ohio), Gerald R. Davidson (Missouri), William R. Dunning (Pennsylvania/South Jersey), J. Wesley George (Arkansas), James W. Hixson (Michigan), Kirk R. Hudson (New Mexico), Shadd G. Kennedy (West Virginia) and G. Bryant Wright Jr. (Georgia). New trustees will be elected at the Southern Baptist Convention in Phoenix in June.

Trustees will meet again in July in Colorado Springs, Colorado.


There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including potential loss of principal. Past performance is not a guarantee of future results.

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 1-888-GS-FUNDS (1-888-473-8637) or downloading one at GuideStoneInvestments.com/funds. It should be read carefully before investing.

GuideStone Funds and retail investment products are made available through GuideStone Financial Services, member FINRA. Shares of GuideStone Funds are distributed by Foreside Funds Distributors LLC. GuideStone Funds and GuideStone Financial Services are controlled-affiliates of GuideStone Financial Resources.

The fi360 Fiduciary Score® is a peer percentile ranking of an investment against a set of quantitative due diligence criteria selected to reflect prudent fiduciary management. The criteria include total returns, risk-adjusted returns, expenses and other portfolio statistics. Investments are ranked according to their ability to meet due diligence criteria every calendar quarter. The rank becomes the fi360 Fiduciary Score (Quarter). The fi360 Fiduciary Score represents a suggested course of action and is not intended, nor should it be used, as the sole source of information for reaching an investment decision. Visit fi360.com/fi360-Fiduciary-Score for the complete methodology document. GuideStone Funds were ranked number 79 out of 243 mutual fund families as of December 31, 2016.

Lipper Inc., a Reuters Company, is a nationally recognized organization that compares the performance of mutual funds having similar investment objectives. The comparison is made across registered mutual funds, ranking the funds with similar objectives according to total returns. These investment returns are calculated after operating expenses have been deducted from each fund, but the rankings do not take sales charges into account. Lipper rankings are subject to change monthly, and past rankings are no guarantee of future results. As of December 31, 2016, the Extended-Duration Bond Fund-Institutional class ranked 1 out of 46 funds in the Corporate Debt Funds: A Rated category for the 1-Year period, 1 out of 38 funds in the Corporate Debt Funds: A Rated category for the 5-Year period and 1 out of 30 funds in the Corporate Debt Funds: A Rated category for the 10-Year Period.

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