Beutel Goodman Mutual Funds

What classes of Beutel Goodman mutual funds are available for purchase?

Investors who work with an advisor may purchase Beutel Goodman’s Class B or Class F mutual funds.

• Beutel Goodman’s Class B mutual funds have a trailer fee embedded in the funds’ management fee. A trailer fee is a fee we pay directly to your advisor on your behalf for ongoing investment advice and other advisory-related services. The amount of the fee ranges depending on the type of fund you hold. You can find more information on trailer fees and mutual fund classes in our Simplified Prospectus, or by speaking to your advisor.
• Beutel Goodman’s Class F mutual funds are typically used by fee-based advisors, and do not include an embedded trailer fee because you pay your dealer a fee directly.

We do not sell our mutual funds directly to individual investors, but do-it-yourself investors can access our Class F mutual funds through discount brokers.

We also offer Class I versions of our mutual funds for Institutional Investors and clients who invest with us on a discretionary basis through our Private Client Group. Unlike the Class B, F and D funds, only operational costs are directly charged by Class I funds; a management fee is negotiated separately. Please contact our Institutional or Private Client team for more information on how to access our Class I mutual funds.

What is the difference between mutual fund trusts and corporate classes?

All Beutel Goodman mutual funds are managed under the trust structure. The main difference between mutual fund trusts and corporate classes is the legal structure, which affects the tax treatment of the funds.

A fund that qualifies as a mutual fund trust under the Income Tax Act (Canada) is a single legal entity that pays no income tax under the Act, but instead distributes net interest, dividends and capital gains earned in the fund to unitholders. This means that if you hold units of a trust outside of a registered account such as an RRSP, RRIF or TFSA, you will be required to pay applicable income taxes on the distributions.

Corporate class mutual funds, on the other hand, are held within a mutual fund corporation, which may contain several different funds. The primary benefit of this structure is the tax efficiency of distributions for investors who hold funds in non-registered accounts, as corporate class funds can only pay out distributions in the form of capital gains and Canadian dividends. Interest and foreign income must be retained within the corporation and are subject to taxation, but the corporation’s ability to pool and offset income, gains, losses, carry-forwards and expenses from all the funds it holds can help minimize taxes payable by the corporation.

What is a U.S. dollar purchase option?

A U.S. dollar purchase option is a convenient way for investors who hold U.S. currency to invest directly in a Canadian-domiciled mutual fund without incurring foreign exchange costs. This option allows you to invest directly in the fund with U.S. currency.

We currently offer a U.S. dollar purchase option for the Beutel Goodman American Equity Fund.

What components comprise the expenses associated with Beutel Goodman mutual funds?

MERs

An MER, or management expense ratio, represents the annual costs associated with a mutual fund, expressed as a percentage of total assets. Included in this ratio are:

• Sales taxes (HST)
• Operating expenses
• Management fees for Beutel Goodman’s investment management services (applicable to Classes B, D and F). In the case of Beutel Goodman’s Class B mutual funds, trailer fees are included in the management fees. Trailer fees are paid to your advisor for their advice and financial planning services. A trailer fee may also be payable to direct-investing platforms on our Class D mutual funds. You can find more information on trailer fees in our Simplified Prospectus, or by speaking to your advisor.

Trading Costs

The trading expense ratio (TER) represents the trading costs associated with a mutual fund, expressed, on an annualized basis, as a percentage of total assets in the fund. They are paid by the mutual funds directly. Details on the TER can be found within our individual Management Reports of Fund Performance and Fund Facts documents.

As short-term trading can impose costs and therefore potentially lower fund returns, you may be charged a short-term trading fee of up to 2% if you redeem or switch between Beutel Goodman mutual funds within 30 days of purchase. This does not apply to Beutel Goodman Money Market Fund.

Sales Charges

Investors who purchase Class B or Class D units of a Beutel Goodman mutual fund may be subject to an initial sales charge of up to 4%. This fee is charged by your dealer, not Beutel Goodman.

We do not offer, and have never offered, Deferred Sales Charge (DSC) or “back-end load” classes of Beutel Goodman mutual funds.

Which Beutel Goodman mutual funds pay distributions?

Many Beutel Goodman funds pay distributions. Historical distributions for each fund and class can be found on the individual mutual fund pages or in the Interim or Annual MRFPs for each of the funds.

The frequency of distribution varies depending on the fund. Most are paid annually or quarterly, while distributions for Beutel Goodman Money Market Fund are paid monthly. Full details on each fund’s distribution schedule and the type of distributions it pays out can be found on its fund fact page.

What is the minimum investment amount for Beutel Goodman mutual funds?

The initial minimum investment amount for Class B, Class D or Class F of any Beutel Goodman mutual fund is $5,000. This minimum is on a per-fund basis and cannot be spread across multiple funds. The minimum subsequent investment amount is $100.

Class I funds, the institutional series of our mutual funds, require a contractual agreement with Beutel Goodman. For more information, please contact our Institutional or Private Client team.

What are the differences between Beutel Goodman’s global equity mutual funds?

Beutel Goodman International Equity Fund invests in the equity of companies domiciled in developed-market countries, excluding Canada and the United States.

Beutel Goodman Total World Equity Fund invests in equity securities in all developed markets, but a minimum of 51% of the fund’s assets must be allocated to Canadian securities.

Beutel Goodman Global Equity Fund invests primarily in companies in the U.S. and international developed markets, although there are no geographic restrictions.

Like our global equity fund, Beutel Goodman World Focus Equity Fund invests primarily in companies in the U.S. and international developed markets, but typically holds fewer securities and as such is more concentrated.

Beutel Goodman Global Dividend Fund also invests predominantly in the U.S. and international developed markets, but with a focus on companies that pay a dividend. This fund may appeal to investors seeking income.

What direct-investing platforms are Beutel Goodman mutual funds available on?

Beutel Goodman mutual funds are available through most major financial institutions and their related direct-investing platforms.

Should you have trouble locating the Beutel Goodman mutual fund you would like to purchase on your direct-investing platform, please reach out directly to your platform’s help desk. The full lineup of our funds is available through Fundserv, and a fund can likely be added to your platform if you request it.

Are Beutel Goodman mutual funds eligible for purchase in registered plans?

Beutel Goodman mutual funds can be purchased for registered accounts, including registered retirement savings plans (“RRSPs”), registered retirement income funds (“RRIFs”) and tax-free savings accounts (“TFSAs”). They are also available for locked-in retirement funds (“LIRAs”), life income funds (“LIFs”), and registered education savings plans (“RESPs”) through offering dealers.

Does Beutel Goodman offer mutual fund investors any convenience options, such as automatic contribution or withdrawal plans?

Beutel Goodman mutual fund investors have access to the following convenience options:

Pre-Authorized Monthly Contributions Plan

Each subsequent investment minimum per account under this plan is $100 (although pre-authorized minimums are $50 per fund). You can request an authorization form to start the plan from your advisor or direct-investing platform. There is no charge for this service, and we can change or end the plan on 30 days’ prior written notice by you.

Automatic Reinvestment of Distributions

We automatically reinvest distributions in additional units unless your dealer directs us otherwise. If you prefer to receive your distributions in cash, please discuss the options with your advisor or direct-investing platform. Your dealer will instruct us as to whether such distributions should be paid to you by cheque or by direct deposit to your designated account at your bank or trust company.

Regular Withdrawal Plans

You can also set up a regular withdrawal program through your dealer if you have at least $5,000 in your account. You can choose when to withdraw (monthly, quarterly, semi-annually or annually) and how much to redeem each time. There is no charge for this program. Please be aware that regular withdrawals could eventually eliminate your entire investments if you do not make additional purchases in your account.

Do Beutel Goodman mutual fund investors need to be Canadian residents?

Beutel Goodman mutual funds are available for distribution outside of Canada only if permitted under the applicable laws of a jurisdiction. We do not solicit to buy or sell securities to any person in a jurisdiction where such an offer or solicitation is not authorized or is unlawful.

Global institutional and private clients may be able to access our strategies through segregated accounts or subadvisory relationships.

Who is Beutel Goodman’s mutual fund custodian?

The custodian, RBC Investor Services Trust, has physical custody of the securities in Beutel Goodman mutual fund portfolios. However, if you decide to invest through a segregated portfolio, Beutel Goodman can work with the custodian of your choosing.

What benchmarks are used to measure Beutel Goodman’s investment strategies against?

For information on our strategies’ benchmarks, please refer to our The benchmarks for our institutional strategies would be appropriate to use for the corresponding mutual fund strategy.

Do Beutel Goodman mutual funds use derivatives?

We typically do not use derivatives or hedge foreign currencies in Beutel Goodman equity funds. An exception to this is Beutel Goodman Canadian Dividend Fund, which has the ability to use derivatives, and currently uses them primarily to hedge against changes in the exchange rate between the Canadian dollar and foreign currencies in which investments held by the Fund are denominated.

Beutel Goodman Balanced Fund, Beutel Goodman Income Fund, Beutel Goodman Long Term Bond Fund, Beutel Goodman Core Plus Bond Fund and Beutel Goodman Short Term Bond Fund also have the ability to use derivatives as part of their investment strategies, for hedging and non-hedging purposes, as permitted by applicable securities regulation.

Do Beutel Goodman mutual funds use leverage?

No. Our mutual funds must comply with Canadian mutual fund regulations. These regulations prohibit leverage in mutual funds, which means any long derivative positions must be offset with “cash cover”. This ensures that a fund is never more than 100% exposed to the market.