BEUTEL GOODMAN MANAGED FUNDS

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Beutel Goodman ■ North American Focused Equity Fund Schedule of Investment Portfolio as at December 31, 2014 Average Fair % of Number of Shares/ Coupon Maturity Cost Value Net Par Value Rate (%) Date $ $ Assets Short-Term Investments (2013 – 1.91%) Treasury Bills 125,000 Government of Canada 0.893% 12-Feb-15 124,718 124,718 1.39 50,000 Government of Canada 0.893% 26-Feb-15 49,885 49,885 0.56 125,000 Government of Canada 0.887% 12-Mar-15 124,717 124,717 1.39 50,000 Government of Canada 0.900% 26-Mar-15 49,893 49,893 0.56 50,000 Government of Canada 0.917% 9-Apr-15 49,876 49,876 0.56 399,089 399,089 4.46 Common Stocks (2013 – 97.83%) Energy 11,675 Canadian Natural Resources Ltd. 367,163 419,366 4.67 12,600 Cenovus Energy Inc. 415,558 302,022 3.36 7,100 Halliburton Co. 325,226 323,434 3.60 1,107,947 1,044,822 11.63 Industrial 3,225 Caterpillar Inc. 309,851 341,898 3.81 15,500 Finning International Inc. 383,335 391,065 4.35 9,375 SNC-Lavalin Group Inc. 401,600 415,406 4.61 12,225 Westjet Airlines Ltd. 358,854 407,826 4.54 1,453,640 1,556,195 17.31 Consumer Discretionary Automobiles & Components 3,625 Magna International Inc. 183,613 456,351 5.08 183,613 456,351 5.08 Retailing 4,425 Canadian Tire Corp Ltd., Class A 331,309 543,125 6.04 3,125 Target Corp. 194,661 274,759 3.06 525,970 817,884 9.10 709,583 1,274,235 14.18 Average Fair % of Number of Shares/ Cost Value Net Par Value $ $ Assets Health Care Pharmaceuticals & Biotechnology 5,350 Eli Lilly & Co. 347,076 427,507 4.76 347,076 427,507 4.76 Financials Banks 11,600 BB&T Corp. 412,187 522,515 5.82 7,100 Royal Bank of Canada 442,566 569,704 6.34 10,475 The Toronto-Dominion Bank 387,490 581,467 6.47 1,242,243 1,673,686 18.63 Diversified Financials 6,550 JPMorgan Chase & Co. 281,121 474,766 5.29 281,121 474,766 5.29 1,523,364 2,148,452 23.92 Information Technology 8,875 Oracle Corp. 313,390 462,268 5.14 13,400 Symantec Corp. 316,038 398,180 4.43 14,200 Teradyne Inc. 301,757 325,490 3.62 931,185 1,185,938 13.19 Telecommunication Services 10,275 Rogers Communications Inc. 457,547 464,122 5.17 8,500 Verizon Communications Inc. 454,541 460,556 5.13 912,088 924,678 10.30 Total Common Stocks 6,984,883 8,561,827 95.29 Transaction Costs (9,069) Total Investments 6,975,814 8,561,827 95.29 Total Investments and Short-Term Investments 7,374,903 8,960,916 99.75 Other Assets Net of Liabilities 22,153 0.25 Net Assets Attributable to Holders of Redeemable Units 8,983,069 100.00 The accompanying notes are an integral part of these financial statements. 24 Beutel Goodman Managed Funds Annual Report as at December 31, 2014
Beutel Goodman ■ North American Focused Equity Fund Fund Specific Notes to the Financial Statements As at December 31, 2014, December 31, 2013 and January 1, 2013 Risk Management The investment objective of the Beutel Goodman North American Focused Equity Fund (the “Fund”) is to seek long-term capital growth through investments in common shares and other equity securities of established Canadian issuers. In addition, the Fund may also invest in short term fixed income securities of Canadian issuers. The strategy of this Fund is to hold a concentrated portfolio of quality companies for the long term. Thus, the investment portfolio of the Fund will consist of a small number of large positions with very low turnover. It is not expected that the Fund will invest in more than 18 issuers at one time. Companies are purchased that can grow their intrinsic value at above normal rates over a long period of time. Companies generating substantial free cash flow are favoured. Securities of these companies are purchased when they are trading at a substantial discount to their business value. The downside risk of buying such securities is perceived to be small and the risk/reward ratio is highly favourable. The Fund may hold significant cash balances from time to time. Investments by the Fund in non-Canadian securities will generally not exceed 45% of the Fund’s assets taken at book value. The Fund’s overall risk management program seeks to minimize the potentially adverse effect of risk on the Fund’s financial performance in a manner consistent with the Fund’s investment objective. Credit Risk As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund had no significant investments in debt instruments, other than short-term investments. Accordingly, the Fund is not subject to significant amounts of credit risk. Interest Rate Risk As at December 31, 2014, December 31, 2013 and January 1, 2013, the majority of the Fund’s financial assets and liabilities are non-interest bearing. Accordingly, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Other Price Risk The impact on net assets of the Fund due to a 1 percent change in benchmark, using historical correlation between the Fund’s return as compared to the return of the Fund’s benchmark, as at December 31, 2014, December 31, 2013 and January 1, 2013, with all other variables held constant, is included in the following table. Regression analysis has been utilized to estimate the historical correlation. The analysis uses 36 data points based on the monthly net returns of the Fund. The returns of all classes of units of the Fund are substantially similar except for the differences in expense structure. Impact on net assets ($000) Benchmark Dec. 31, 2014 Dec. 31, 2013 Jan. 1, 2013 North American Focused Equity Benchmark* 79 58 33 Total 79 58 33 Foreign Currency Risk Currencies to which the Fund had exposure as at December 31, 2014, December 31, 2013 and January 1, 2013 are as follows: Dec. 31, 2014 Cash and Financial Other Percentage cash assets at assets and of net equivalents fair value liabilities Total assets ($000) ($000) ($000) ($000) (%) United States Dollar — 4,011 — 4,011 44.7 Total — 4,011 — 4,011 44.7 Dec. 31, 2013 Cash and Financial Other Percentage cash assets at assets and of net equivalents fair value liabilities Total assets ($000) ($000) ($000) ($000) (%) United States Dollar — 2,672 2 2,674 40.9 Total — 2,672 2 2,674 40.9 Jan. 1, 2013 Cash and Financial Other Percentage cash assets at assets and of net equivalents fair value liabilities Total assets ($000) ($000) ($000) ($000) (%) United States Dollar — 1,306 2 1,308 35.3 Total — 1,306 2 1,308 35.3 The amounts in the above tables are based on the fair value of the Fund’s financial instruments (including cash and cash equivalents), other financial assets (including dividends, interest receivables and receivables for investments sold) and financial liabilities (including payables for investments purchased). As at December 31, 2014, December 31, 2013 and January 1, 2013, if the Canadian dollar had strengthened or weakened by 1 percent in relation to all currencies, with all other variables held constant, net assets would have increased or decreased, respectively, by approximately $40,000 (December 31, 2013 $27,000; January 1, 2013 $13,000). In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material. * The North American Focused Equity Fund Benchmark is comprised of the S&P/TSX (60%) and the S&P 500Cdn. (40%). The historical correlation may not be representative of the future correlation, and accordingly the impact on net assets could be materially different. Beutel Goodman Managed Funds Annual Report as at December 31, 2014 25
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BEUTEL GOODMAN MANAGED FUNDS

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