Institutional Investors
Equity Strategies
Our equity strategies use bottom-up, fundamental research to invest in companies trading at discounts to their estimated business value, as defined by the present value of their sustainable free cash flow. Our disciplined equity investment process also focuses on downside protection because stocks purchased at a significant discount to business value can provide a margin of safety. This approach, combined with a focus on high-quality, growing companies with strong balance sheets, helps to avoid the possibility of capital loss over the long term.
The objective of the fundamental equity research process is to identify high-quality, liquid companies with management teams that have successfully built shareholder value over extended periods of time. A common characteristic of these companies is their ability to generate sustainable free-cash flow, which should provide the financial flexibility to support organic growth and profitability, make strategic acquisitions, buy back shares and pay dividends.
All of our equity strategies incorporate a process-driven approach to risk management. All research activity includes the following strict research elements:
- Investment thesis
- Description of the company and its industry
- Competitive position
- Company’s strengths and weaknesses
- Profitability and cash flow analysis
- Balance sheet assessment
- Business valuations
- Intrinsic value
- Trading liquidity
- Potential investment risk
- ESG considerations
Beutel Goodman has a high hurdle rate for any new position considered for one of our strategies; for example, in our large-cap equity strategies, the required return over a minimum of three years is 50%. We also follow a rules-based process that is designed to take emotion out of our investment decisions. This means establishing an upside and downside target for each stock. Our process-driven sell discipline entails a one-third sale of securities that exceed our upside target, as well as a secondary review for stocks that fall below their downside target.
U.S. Equity
Inception date: January 1, 1985
Style: Large Cap Value
Benchmark: Russell 1000 Value Index
Lead Portfolio Manager(s): Rui Cardoso and Glenn Fortin
Objective: The U.S. Large Cap Value Equity strategy seeks to maximize returns over the long term through the application of a disciplined value investing approach emphasizing capital preservation and a focus on absolute risk and return.
Composition: The strategy is a concentrated portfolio of 25 to 50 high-conviction mid- to large-cap stocks listed in the U.S. The investment team imposes limitations on the maximum weight in any individual security or sector to ensure adequate diversification.
Vehicles:
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Mutual Fund, Institutional Class |
SMA Model Delivery |
’40 Act Fund [1] |
UCITS Fund [2] |
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Global institutions |
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In addition to our Canadian managed-account and fund offerings, Beutel Goodman also serves as the sub-advisor for Brown Advisory – Beutel Goodman Large-Cap Value Fund, a ’40 Act fund which is distributed in the United States by ALPS Distributors, Inc., and as the sub-investment manager to BA Beutel Goodman US Value Fund, a sub-fund of Brown Advisory Funds plc, an undertaking for collective investment in transferable securities (UCITS), domiciled in Ireland, which is distributed by Brown Advisory LLC. This statement does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction, and is by way of information only.
SEI Trust Company the ("Trustee") serves as the Trustee of the Beutel Goodman U.S. Large Cap Value Collective Investment Trust (the "Trust'') and maintains ultimate fiduciary authority over the management of, and the investments made, in the Trust. The Trust is part of a Collective Investment Trust operated by the Trustee. The Trustee is a trust company organized under the laws of the Commonwealth of Pennsylvania and wholly owned subsidiary of SEI Investments Company (SEI). The Trust is not a mutual fund, as defined under the investment company act of 1940, as amended. The Trust is a trust for the collective investment of assets or participating tax qualified pension and profit sharing plans and related trusts, and governmental plans as more fully described in the Declaration of Trust. As bank collective trusts, the Trust is exempt from registration as an investment company. The Trust is managed by SEI Trust Company, the trustee, based on the investment advice of Beutel, Goodman & Company Ltd., the investment adviser to the Trust
International
Inception date: October 1, 1993
Style: All Cap Value
Benchmark: MSCI EAFE Index
Lead Portfolio Manager(s): KC Parker and Stanley Wu
Objective: The International Equity strategy seeks to maximize portfolio returns over the long term through the application of a disciplined value investing approach emphasizing capital preservation and a focus on absolute risk and return.
Composition: The strategy is a concentrated portfolio of 25 to 50 high-conviction stocks listed primarily in international developed markets. The investment team imposes limitations on the maximum weight in any individual security or sector to ensure adequate diversification. The portfolio is invested prudently with respect to geographic concentrations, with a typical maximum of 15% in emerging markets.
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Segregated account |
Mutual Fund, Institutional Class |
SMA Model Delivery |
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U.S. institutions |
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Global Equity
Inception date: July 1, 2005
Style: Large Cap Value
Benchmark: MSCI World Index or MSCI World Value Index
Lead Portfolio Manager(s): Stanley Wu and Ryan Fitzgerald
Objective: The World Focus Equity strategy seeks to maximize portfolio returns over the long term through the application of a disciplined value investing approach emphasizing capital preservation and a focus on absolute risk and return.
Composition: The strategy is a concentrated portfolio of 20 to 35 high-conviction, mid- to large-cap stocks listed primarily in global developed markets. The investment team imposes limitations on the maximum weight in any individual security and is invested prudently with respect to sector and geographic concentrations, with a typical maximum of 10% in emerging markets.
Vehicles:
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Segregated account |
Mutual Fund, Institutional Class |
SMA Model Delivery |
UCITS Fund [1] |
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U.S. institutions |
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Global institutions |
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Canadian institutions |
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In addition to our Canadian managed-account and fund offerings, Beutel Goodman also serves as the sub-investment manager to BA Beutel Goodman World Value Fund, a sub-fund of Brown Advisory Funds plc, an undertaking for collective investment in transferable securities (UCITS), domiciled in Ireland, which is distributed by Brown Advisory LLC. This statement does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction, and is by way of information only. |
Inception date: July 1, 1995
Style: Large Cap Value
Benchmark: MSCI World Index or MSCI World Value Index
Lead Portfolio Manager(s): Ryan Fitzgerald and Colin Ramkissoon
Objective: The Global Equity strategy seeks to maximize portfolio returns over the long term through the application of a disciplined value investing approach emphasizing capital preservation and a focus on absolute risk and return.
Composition: The strategy is a concentrated portfolio of 40 to 70 high-conviction, mid- to large-cap stocks listed primarily in the U.S. and international developed markets. The investment team imposes limitations on the maximum weight in any individual security or sector to ensure adequate diversification. The portfolio is invested prudently with respect to geographic concentrations, with a typical maximum of 10% in emerging markets.
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Segregated account |
Mutual Fund, Institutional Class |
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U.S. institutions |
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Global institutions |
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Canadian institutions |
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Inception date: December 1, 2007
Style: Large Cap Value
Benchmark: MSCI World Index or MSCI World Value Index
Lead Portfolio Manager(s): KC Parker and Colin Ramkissoon
Objective: The Global Dividend strategy seeks to maximize portfolio returns by investing in equities offering a high, sustainable yield or high dividend growth rate as well as the potential for capital appreciation..
Composition: The strategy is a concentrated portfolio of 20 to 50 high-conviction, mid- to large-cap dividend-paying stocks listed primarily in the U.S. and international developed markets. Portfolio construction starts with a screening of our Global Equity value strategy in order to remove positions that do not pay a significant dividend. The investment team imposes limitations on the maximum weight in any individual security or sector to ensure adequate diversification. The portfolio is invested prudently with respect to geographic concentrations, with a typical maximum of 10% in emerging markets.
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Canadian institutions |
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Canadian Equity
Inception date: January 1, 1985
Style: Large Cap Value
Benchmark: S&P/TSX Composite Index
Lead Portfolio Manager(s): Vim Thasan and James Black
Objective: The Canadian Equity strategy seeks to maximize returns over the long term through the application of a disciplined value investing approach emphasizing capital preservation and a focus on absolute risk and return.
Composition: The strategy combines a concentrated portfolio of 20 to 45 high-conviction mid- to large-cap stocks with a complement of small-cap stocks that follow the model of our Canadian Small-Cap strategy. The investment team imposes limitations on the maximum weight in any individual security or sector to ensure adequate diversification.
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Segregated account |
Mutual Fund, Institutional Class |
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U.S. institutions |
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Global institutions |
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Canadian institutions |
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