The U.S. Securities and Exchange Commission requires every mutual fund to disclose in its prospectus the policies and procedures its board has adopted to discourage frequent purchases and redemptions of Fund shares. Mutual funds, including GuideStone Funds, adopt these policies and procedures to deter frequent purchases and redemptions of Fund shares, because short-term trading by shareholders presents risks for other shareholders of the Funds, including, among other things, dilution in the value of Fund shares held by long-term shareholders, interference with the efficient management of the Funds’ portfolios, and increased brokerage and administrative costs. Market timing strategies often involve frequent purchases and sales of mutual fund shares.
GuideStone Funds Frequent Purchases and Redemptions Policy
Policy Effective May 1, 2022:
- A violation occurs when a fund shareholder sells, buys, and then sells the same Fund on one or more accounts within a sixty (60) day period. This pattern will trigger a warning.
- If you buy then sell shares of a Fund again on one or more accounts within sixty days (60) of the warning, then you will be restricted from buying back into that same fund for a period of ninety (90) days from the last sell.
- Acquisitions of shares through the automatic reinvestment of dividends and distributions
- Systematic purchases, exchanges, and redemptions
- Redemptions of shares to return excess IRA contributions
- Certain transactions made within a retirement or employee benefit plan, such as payroll or employer contributions, rollovers, required minimum distributions, loans and loan repayments, hardship withdrawals, plan terminations or other transactions that are initiated by a party other than the plan participant
- Transactions initiated by a Fund (e.g., due to failure to meet account minimums)
- Transactions in shares of the Money Market Fund
- Generally, transactions made by model-based discretionary advisory accounts (e.g., GuideStone Personal Advisory Services)
The above policy applies to all shareholders of GuideStone Funds.