BEUTEL GOODMAN MANAGED FUNDS

Beutel Goodman ■ Global 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 Global Equity Fund (the
“Fund”) is to seek long-term enhancement of capital primarily through
investments in common stocks and other equity securities of non-North
American issuers. The Fund’s investment strategy is relative value-driven stock
selection. The Fund’s Manager seeks issuers trying to create unitholder value
with strong management depth, which can be purchased at reasonable prices
in terms of price/earnings and discount/asset values relative to anticipated
growth and profitability. 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 Index 4,117 4,131 3,406
Total 4,117 4,131 3,406
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 — 174,822 180 175,002 39.7
Euro Currency — 97,347 189 97,536 22.1
British Pound — 75,038 233 75,271 17.1
Japanese Yen — 29,379 — 29,379 6.7
Norwegian Krone — 28,501 — 28,501 6.5
Korean Won — 10,076 — 10,076 2.3
Singapore Dollar — 9,147 — 9,147 2.1
Total — 424,310 602 424,912 96.5
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 — 207,672 198 207,870 48.9
Euro Currency — 93,195 — 93,195 21.9
British Pound — 14,920 2,083 17,003 4.0
Japanese Yen — 54,050 108 54,158 12.7
Norwegian Krone — 18,907 (128) 18,779 4.4
Korean Won — 14,220 — 14,220 3.3
Australian Dollar — 5,399 — 5,399 1.3
Total — 408,363 2,261 410,624 96.5
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 62 192,172 108 192,342 55.0
Japanese Yen — 51,721 918 52,639 15.1
Euro Currency — 46,778 — 46,778 13.4
British Pound — 23,532 — 23,532 6.7
Australian Dollar — 9,760 — 9,760 2.8
Norwegian Krone — 6,757 — 6,757 1.9
Total 62 330,720 1,026 331,808 94.9
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).
54 Beutel Goodman Managed Funds Annual Report as at December 31, 2014