BEUTEL GOODMAN MANAGED FUNDS

Beutel Goodman ■ Money Market 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 Money Market Fund (the
“Fund”) is to seek to maintain a high level of liquidity by investing in high
quality Canadian money market instruments such as treasury bills, shortterm
government and corporate securities and deposit receipts of Canadian
chartered banks and trust companies having a term to maturity not exceeding
one year. The Fund will invest in a variety of money market instruments
including Government of Canada treasury bills, short-term government
bonds, commercial paper, short-term corporate bonds, chartered bank deposit
receipts with a rating of A1 or R1 (low) depending on the rating agency, with
a term to maturity of less than a year. The Fund is conservatively managed
with an average term to maturity of less than 183 days. 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
invested in debt instruments with the following credit ratings:
Debt Instruments* Percentage of net assets (%)
by Credit Rating Dec. 31, 2014 Dec. 31, 2013 Jan. 1, 2013
R1 (high) 37 40 38
R1 (mid) 5 — 24
R1 (low) 58 60 38
Total 100 100 100
*Excludes cash and cash equivalents.
Credit ratings are obtained primarily from Dominion Bond Rating Service,
Standard & Poor’s and Moody’s.
Interest Rate Risk
Interest rate risk arises on interest-bearing financial instruments. Due to the
short term nature of the investments held by the Fund, the Fund is not exposed
to a significant risk that the value of interest-bearing financial instruments
will fluctuate due to changes 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
FTSE TMX Canada 91-day
Treasury Bills (33) 184 384
Total (33) 184 384
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
As at December 31, 2014, December 31, 2013 and January 1, 2013, the Fund
did not have significant exposure to foreign currency risk.
Concentration Risk
The following is a summary of the Fund’s concentration risk as at December 31,
2014, December 31, 2013 and January 1, 2013:
Market segment Dec. 31, 2014 Dec. 31, 2013 Jan. 1, 2013
Short-Term Investments
Treasury Bills 2.32% 2.17% 11.60%
Bankers Acceptance 3.52% — 22.45%
Discount Commercial Paper 56.44% 63.31% 42.12%
Short-Term Bonds
Corporate Bonds 37.64% 34.47% 24.09%
Total 99.92% 99.95% 100.26%
90 Beutel Goodman Managed Funds Annual Report as at December 31, 2014