Curtis D. Sharp
Executive Officer for Denominational and Public Relations
214-720-2127
Curt.Sharp@GuideStone.orgGuideStone Funds see substantial gains one year after market low point
March 15, 2010
DALLAS — March 9, 2010 marked the one-year anniversary since the U.S. stock market’s low point during the tumultuous 2008–2009 financial crisis. One year prior, investors already fatigued from unprecedented volatility looked on as the Dow Jones industrial average closed at 6,547 and the S&P 500® closed at 676 — 12-year lows for both indices.
In accordance with historical trends, financial recovery ensued for both stocks and bonds, and as of the close of business on Tuesday, March 9, 2010, the S&P 500® was up nearly 70% from its low point. The Dow closed up 61% from its March 2009 low. For fixed income, the Barclays Aggregate Bond Index was up 9.31% on March 9, 2010 from March 9, 2009. While many effects still remain from the recent downturn, the significant gains have been a welcome relief for investors who stayed the course and did not panic.
The recent rally brought welcome gains for GuideStone Funds’ investors as well. For example, the GuideStone Small Cap Equity Fund (GS4 Class) grew by 89% and the GuideStone Real Estate Securities Fund (GS4 Class) increased by more than 127% from their March 9, 2009 lows. In the bond market, the GuideStone Global Bond Fund (GS4 Class) saw an increase of 51% and the GuideStone Extended-Duration Bond Fund (GS4 Class) increased by 38% from the market low in March 2009.
Please note this significant growth is not common and likely will not be soon repeated. Therefore, these results should not be used to predict results in the future. Investors should make investment decisions based on their long-term objectives, not on short-term performance.
Correlating with the market’s gains, as of the end of 2009, most GuideStone 403(b) retirement plan participants saw their average account balances recover more than 40% from the low point of the market.
“During the past year, we’ve experienced the effects of incredible financial market growth and participants have seen the benefits of maintaining consistent contributions and asset allocations,” GuideStone Chief Operating Officer John R. Jones said.
Participants who maintained their asset allocation and contribution schedule throughout the decline and subsequent growth of the market experienced two benefits. They were able to purchase shares at decreased prices during market lows, and as the market recovered, they experienced significant growth in their accounts. This investment technique is known as “dollar-cost averaging” and may be a helpful option for those who pulled out of the market and are looking for a way to get back in.
GuideStone continues to recommend a long-term perspective for its participants. This investment strategy involves steady contributions to a portfolio with an allocation in line with the investor’s age and risk tolerance and maintaining that allocation until life conditions necessitate a change.
“We should all avoid making emotional changes based on short-term market swings,” Jones said. “Whether we experience a negative swing like we saw throughout 2008 and early 2009 or a positive swing like the one we’ve seen over the past year, our perspective should remain on the long-term.”
GuideStone offers several resources to help participants invest with a long-term perspective. Most recently, GuideStone has made available GPS: Guided Planning Services.™ The online service helps identify retirement planning gaps and offers advice on how to reallocate funds to stay on track. Participants can learn more about the tool and try it for themselves.
| 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. |
GuideStone Funds shares are distributed by PFPC Distributors, Inc., underwriter of the funds, 760 Moore Rd., King of Prussia, PA 19406.
* Financial advice provided by GuideStone Advisors, a controlled-affiliate of GuideStone Financial Resources.
| The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most current month-end may be obtained at www.GuideStone.org. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Returns in excess of 20% reflect unusual market conditions and may not be sustained at this level over the long term. |
The Asset Allocation Funds and the MyDestination Funds (“Funds”) attempt to achieve their objectives by investing in the GuideStone Select Funds. By investing in the Funds you will also incur the expenses and risks of the underlying Select Funds. The principal risks of the Funds will change depending on the asset mix of the Select Funds in which they invest. You may directly invest in the Select Funds. The Funds’ value will go up and down in response to changes in the share prices of the investments that they own. The amount invested in the Fund is not guaranteed to increase, is not guaranteed against loss, nor is the amount of the original investment guaranteed at the target date. It is possible to lose money by investing in the Funds. The MyDestination Funds are managed to a retirement date (“target date”) by adjusting the percentage of fixed income securities and equity securities to become more conservative each year until reaching the retirement year and then approximately 15 years thereafter. The target date in the name of the Funds is the approximate date when an investor plans to start withdrawing money.
Please bear in mind, asset allocation or dollar-cost averaging cannot guarantee a profit or protect you against a loss in a declining market. Because dollar-cost averaging plans involve making continuous investments regardless of fluctuating share prices, you should consider your financial ability to continue making purchases through periods of low prices.
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