BEUTEL GOODMAN MANAGED FUNDS

Beutel Goodman ■ Notes to Financial Statements
Class B Units: for retail investors investing a minimum of $5,000 in a Fund
through authorized third-party dealers;
Class D Units: for retail investors investing a minimum of $5,000 in a Fund;
Class F Units: for investors investing a minimum of $5,000 in a Fund, who
are enrolled in a dealer-sponsored fee-for-service or wrap program (where
various mutual funds are bundled together) who are subject to a periodic
asset-based fee, rather than commissions on each transaction and whose
dealer has signed a Class F agreement, or any other investors for whom we do
not incur distribution costs, such as our employees (or affiliated corporations);
Class I Units: for investors who have invested a minimum of $500,000 in a
Fund and who have entered into an investment management agreement with
us. At our discretion, we may waive the investment minimum.
The different classes of units of a Fund represent an interest in the same
portfolio investments of the Fund.
The Fund Specific Notes to the Financial Statements disclose capital
movements in each Fund’s capital during the years.
Short-Term Trading Penalty
To discourage excessive trading, the BG Funds may, at the Manager’s sole
discretion, charge a short-term trading penalty of up to 2% of the amount
switched or redeemed if held in the Fund for less than 30 days. This penalty is
paid directly to the BG Funds.
7. Related Party Transactions
Management and administrative fees
The Manager, in consideration of management fees received, provides
management services, including key personnel, that are required in the dayto-day
operation of the BG Funds, including management of the investment
portfolios. The management fee is calculated as an annual percentage of the
total net asset value of each Fund at the end of each business day and payable
monthly. Management fees charged to Class I units are negotiated and paid
directly by the investors, not by the BG Funds. In addition to management
fees, the BG Funds also pay a monthly administrative fee to the Manager,
based on daily net assets.
The following table lists the management fees that are payable to the
Manager:
Management Fees
Fund Name Class Management Fees
(%) (1)
Balanced Fund B up to 1.75
D up to 1.00
F up to 0.85
Canadian Equity Fund B up to 1.85
D up to 1.25
F up to 0.90
Total World Equity Fund B up to 1.85
D up to 1.25
F up to 0.90
Fund Name Class Management Fees
(%) (1)
North American Focused Fund B up to 1.85
D up to 1.25
F up to 0.90
Small Cap Fund B up to 1.95
D up to 1.25
F up to 1.00
Canadian Dividend Fund B up to 1.85
D up to 1.25
F up to 0.90
Global Dividend Fund B up to 1.90
F up to 1.00
World Focus Equity Fund B up to 1.90
D up to 1.25
F up to 1.00
Global Equity Fund B up to 1.90
D up to 1.25
F up to 1.00
International Equity Fund B up to 1.90
D up to 1.25
F up to 1.00
American Equity Fund B up to 1.85
D up to 1.25
F up to 0.90
Income Fund B up to 1.00
D up to 0.70
F up to 0.50
Long Term Bond Fund B up to 1.00
D up to 0.70
F up to 0.50
Corporate/Provincial Active Bond Fund B up to 1.00
D up to 0.70
F up to 0.50
Short Term Bond Fund B up to 1.00
F up to 0.50
Money Market Fund D up to 0.50
F up to 0.40
Fundamental Canadian Equity Fund B up to 1.85
F up to 0.90
(1) Plus HST where applicable.
The Manager may reduce the management fee for certain large investors who
have substantial holdings in Class D units of a Fund. To accomplish this, the
Manager will reduce the management fee it charges to the Class D units and
the Fund pays out the difference to these investors as a special distribution.
This is called a management fee distribution. The Manager calculates and
accrues the reduction daily and distributes it quarterly. The distribution is
reinvested in additional Class D units of the Fund on behalf of such investors.
96 Beutel Goodman Managed Funds Annual Report as at December 31, 2014