As Christians, we don’t confine our faith to Sunday mornings; it permeates every aspect of our lives. Our faith guides how we live, and it should also guide how we invest. This means carefully considering our investments and ensuring they align with our values. Recently, the concept of exclusionary screening, sometimes called negative screening, has gained traction among socially conscious investors. In this process, certain companies and industries are intentionally excluded from investment portfolios based on ethical or moral criteria.
At GuideStone®, we want to help you align your faith with your finances. We’ve developed a faith-based investing methodology that uses exclusionary screens based on the biblical values of life, family, safety, health, stewardship and advocacy, resulting in our Christian-values screening process. Our investment strategies do not invest in companies or organizations that offer products or services that are incompatible with our Christian values, including, but not limited to, those involving abortion, sexual immorality, alcohol, tobacco or gambling.1
The GuideStone Committee on Faith-Based Investing directs the ongoing and robust screening process for the GuideStone Funds® suite of registered mutual funds. The Committee meets quarterly to review and revise screening criteria and the restricted securities list to ensure that the investment strategies comprising GuideStone Funds are honoring the Lord. Additionally, GuideStone Capital Management, LLC (GSCM), the adviser to the Funds, has full-time analysts devoted to the day-to-day responsibility of implementing and monitoring the Christian-values screening procedures.
First, investable companies and organizations providing products and services that conflict with the screening criteria are identified through a variety of innovative research tools: Bloomberg Corporate Action Tool, ISS Governance DataDesk and MSCI ESG Manager. Once this data has been compiled, the restricted issuers list is developed.
Using the restricted issuers list, a faith-based investing mandate is created for the sub-advisers used in the GuideStone Funds suite of mutual funds. GSCM investment analysts monitor sub-adviser trades daily to ensure compliance with the Christian-values screening requirements.
Extensive due diligence is also conducted on prospective sub-advisers to ensure they are willing and capable of abiding by the restrictions while still performing competitively for investors.
Our culture is constantly changing and not always for the better. New products and services that enter the market reflect some of these negative changes. Because of this, the screening process is ongoing, and the criteria regularly reviewed and revised as necessary to ensure that GuideStone Funds remain true to Christian principles and honor the Lord as new investment opportunities are discovered.
Pursuing a faith-based investing strategy requires a disciplined approach to Christian-values screening while seeking attractive returns that are competitive with the broader market. GuideStone strategies are devoted to helping you steward the resources God has given you.
Ready to get started?
Are you interested in learning more about aligning your faith with your finances through faith-based investing? Contact one of our financial educators and discover how to leverage GuideStone’s distinct approach to investment management.
1 *In accordance with the Adviser’s Christian values, the Funds do not invest in any company that is publicly recognized (as determined by GuideStone Financial Resources) for offering products or services that are incompatible with the Christian values of GuideStone Financial Resources, including but not limited to those involving abortion, sexual immorality, alcohol, tobacco, or gambling.
GuideStone Funds shares are distributed by Foreside Funds Distributors LLC, not an adviser affiliate. Foreside is not a registered investment adviser and does not provide investment advice.
Funds invested in accordance with the faith-based investment restrictions of GuideStone Financial Resources may not be able to take advantage of certain investment opportunities due to these restrictions, which may adversely affect investment performance.
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. It should be read carefully before investing.
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 does not guarantee future results.
Article 