GuideStone Financial Resources Capital Preservation Fund

Inception Date — 4/1/2003.
View a printable version of this information as a  fund fact sheet (pdf) .
View the Capital Preservation Fund performance.

Crediting rate
July 1, 2008 to September 30, 2008: 4.74% (annualized).
Applied to all funds received during the applicable quarter. The crediting rate is reset quarterly, is net of all fees and will be announced approximately two weeks prior to the quarter-end.

Eligible investors
The Fund’s shares are available only to eligible participants in 403(b) and other employer-sponsored retirement plans.

Investment objective
The Fund seeks to maximize current income while seeking to maintain a stable value per share.

Investor suitability
The Fund may be suitable for investors who are wanting to preserve capital and are seeking higher current income than a money market fund over most time periods.

An investment in the Fund is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment, it is possible to lose money by investing in the Fund.

Investment strategy
The Fund invests primarily in a diversified portfolio of investment grade fixed-income securities. The Fund may also invest to a lesser extent in high yield securities and money market instruments.

The Fund seeks to maintain, but does not guarantee, a stable price per share of $10, while paying monthly dividends based on a quarterly announced crediting rate.

Principal investment strategy

• The Fund invests primarily in a diversified portfolio of investment grade fixed-income securities.
• The Fund may also invest to a lesser extent in high yield securities and money market instruments.
• The Fund's targets in allocating its assets are below.
• The Fund will rebalance its assets periodically to adjust for changes in the underlying investments.

Principal risks
The Fund is subject to the following risks.

• Although the Fund seeks to maintain a Net Asset Value (NAV) of $10.00 per share, there is the risk the NAV of the Fund’s shares could fall below $10.00. The Fund is not insured or guaranteed by GuideStone Financial Resources, any bank, the Federal Deposit Insurance Corporation or any government agency.
• The Fund’s crediting rate will change quarterly in response to changes in the value of the underlying assets of the Fund and the level of interest rates. There is no guarantee that the underlying assets held by the Fund will increase in value. It is possible for the crediting rate to go down from the previous quarter.
• Because the Fund participates primarily in investment strategies that utilize bonds and other fixed-income securities, the Fund’s crediting rate will fluctuate each quarter due to differing factors, such as interest rates, yield curve positioning, yield spreads, duration, sectors, credit ratings or fundamental issuer elections.
• High yield securities involve greater risks of default and are more volatile than bonds rated investment grade. Issuers of these bonds may be more sensitive to economic downturns.
• There is a risk that the issuer of a fixed-income investment may fail to pay interest or even principal due in a timely manner or at all.
• The Fund may invest in U.S. dollar denominated securities of foreign issuers and may be negatively affected by political events, economic conditions or inefficient, illiquid or unregulated markets in foreign countries. Foreign issuers may be subject to inadequate regulatory or accounting standards.

Fees and expenses
The information below describes the fees and expenses that you may pay if you buy and hold shares of the Fund. The fees will be factored into the crediting rate and will be deducted from the fund.

Annual Fund Operating Expenses (expenses that are deducted from Fund assets): 0.59%

Indirect expenses paid by the Fund
The Fund bears its proportionate share of the operating expenses of the investment strategies in which it holds shares. This means that if you invest in the Fund, you will bear indirectly, some operating expenses of the underlying investment strategies. These expenses are in addition to the expenses of the fund described above. These expenses will vary over time, depending on which investment strategy the Fund invests in. In order to give you an indication of these expenses, shown below is the average expense ratio for the investment strategies the Fund invests in, based on the Fund’s current target allocation among the investment strategies and the anticipated expenses of those investment strategies for the current fiscal year. Based on these assumptions, the expense ratio of the investment strategies borne indirectly by the Fund would be 0.10%.

Exchange limitations
Participants are prohibited from exchanging out of the Capital Preservation Fund to a “competing fund” without first investing in a “non-competing fund” for a period of at least 90 days. A “competing fund” is any fund predominantly invested in fixed-income securities whose average duration is generally less than 3½ years. For GuideStone Funds, “competing funds” are comprised of: the Money Market Fund, the Low-Duration Bond Fund, the Conservative Allocation Fund and the Conservative Allocation I Fund. The definition of a “non-competing fund” is any fund option(s) other than those funds defined as “competing funds.”  Also, simultaneous exchanges are not allowed, meaning participants may not exchange from the fund to a “non-competing fund” and simultaneously exchange from a “non-competing fund” to a “competing fund.”