DALLAS (BP) – Launched just over five years ago, the MyDestination Funds family of date target funds continue to attract attention and recognition. Today, nearly one out of every four dollars coming into GuideStone retirement accounts is invested in a MyDestination fund.
The MyDestination Funds provide a simpler approach to retirement planning. Investors need only choose the fund that corresponds closest to their retirement date. Each date target fund is a “fund of funds” with a diversified asset allocation that becomes more conservative as the participant moves to and through retirement. Investors are reminded to make consistent and age-appropriate retirement contributions throughout their career.
While they are a simpler approach for investors, they are sophisticated Funds that are recognized by third-party rating firms.
The MyDestination 2005, 2035 and 2045 funds each received three stars for their overall ratings and the MyDestination 2015 and 2025 funds each received four stars from Morningstar® for the period ending February 29, 2012, based on risk adjusted return. Morningstar’s overall rating represents a fund’s performance over its three-, five-, and (when applicable) 10-year period. In the case of the MyDestination Funds, which were launched in 2006, it currently relates to the Funds’ performance over three and five years, including the volatile 2008-2009 market downturn.
In the more recent three-year period, the 2015, 2025, 2035 and 2045 funds each received Morningstar’s highest rating, five stars. Morningstar’s star rating is a quantitative assessment of a fund’s past performance — both return and risk — as measured from one to five stars.
The outstanding Morningstar recognition for the funds comes on the heels of the GuideStone Funds family being ranked No. 1 out of 182 funds, receiving ranking firm Lipper’s 2012 Best Overall Small Fund Group award, one of the nation’s premier financial industry awards, awarded to fund families with up to $40 billion in assets.
GuideStone Financial Resources chief operating officer and GuideStone Funds President John R. Jones said a MyDestination Fund can be a good choice for those wanting a simple approach, those wanting professional management with automatic asset rebalancing and those searching for a diversified portfolio that gradually adjusts as their retirement date approaches.
“When we first offered these funds in December 2006, we became the first and only registered mutual fund company offering Christian-based, socially screened date target funds,” Jones said. “Their popularity continues to grow, as people who want professional management with automatic asset rebalancing find out about these funds and move their money into them.”
In addition to the funds mentioned, GuideStone launched the MyDestination 2055 Fund in January.
As with all GuideStone Funds, the MyDestination Funds adhere to the same social screening guidelines adopted by GuideStone.