BEUTEL GOODMAN MANAGED FUNDS

Beutel Goodman ■ World Focus 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 World Focus Equity Fund
(the “Fund”) is to seek long term capital growth through investment in
common stocks and other equity securities of global issuers. The Fund invests
in a very limited number of mid-to-large capitalization stocks chosen from
anywhere in the world, based primarily on the highest risk-adjusted return
to Beutel Goodman’s research target price. Each of the 20–35 holdings will
be among the best businesses in their respective industries, and generators
of sustainable shareholder value and free cash flow. Portfolio risk and return
will be judged on an absolute – not relative – basis. At all times the Fund will
seek to be diversified and generally fully invested, but there will be no specific
geographic or sector constraints. 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
MSCI World Total Return Index 122 125 12
Total 122 125 12
The historical correlation may not be representative of the future correlation,
and accordingly the impact on net assets could be materially different.
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 — 6,972 15 6,987 51.0
Euro Currency — 3,526 — 3,526 25.7
Japanese Yen — 624 — 624 4.5
British Pound — 1,056 — 1,056 7.7
Norwegian Krone — 941 — 941 6.9
Total — 13,119 15 13,134 95.8
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 — 8,988 13 9,001 66.4
Euro Currency — 2,013 — 2,013 14.9
Norwegian Krone — 836 — 836 6.2
Japanese Yen — 972 — 972 7.2
British Pound — 259 — 259 1.9
Australian Dollar — 95 — 95 0.7
Total — 13,162 13 13,176 97.3
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 — 779 — 779 60.9
Euro Currency — 138 — 138 10.8
Japanese Yen — 97 — 97 7.6
British Pound — 100 — 100 7.8
Australian Dollar — 31 — 31 2.4
Total — 1,145 — 1,145 89.5
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).
Beutel Goodman Managed Funds Annual Report as at December 31, 2014 49