Assignment 1
BEUTEL GOODMAN INT’L EQUITY FUND
FINA 411 – SECTION C

presented to
Abraham I. Brodt

by anonymous John Molson School of Business
October 15th 2014

Executive Summary

Description of Beutel Goodman Int’l Equity
With total assets of $134.8 million, the Beutel Goodman International Equity fund has produced an annual return of 4.41% since its inception in August 1992. This fund is not managed by a separate entity; the sponsor is also the manager. In charge of portfolio management, KC Parker (CFA) and Colin Ramkissoon have chosen to invest in a variety of different equity sectors such as consumer discretionary, financials, materials, energy, and many more. Equity comes mainly from British companies (UK), Japanese companies and Norwegian firms. The purpose of this fund is to seek long-term enhancement of capital, primarily through investments in common stocks of non-North American based companies. Beutel Goodman Int’l exhibits a relatively lower MER than the average international equity fund, standing at 1.48%, as opposed to the average of 2.54%.
The funds top ten holdings represent 42.56% of the total portfolio and come from fairly varied sectors. None of these top ten holdings are from the same sector, and only three of them come from the same geographical area (Japan). Perhaps these varied holdings explain the perfect correlation that this fund has with its benchmark index: the MSCI EAFE (According to the Globe & Mail, 3 year beta is 1.00). The three biggest sectors that the fund is comprised of are Consumer Discretionary (21.93%), Financials (18.65%) and Materials (13.65%).

Findings of the regression analysis are as follows:
The 12-year beta (15 year performance of the benchmark was unavailable) is 0.8685, with a t-stat of 9.65 and an extremely low p-value, the beta could therefore not be zero. The found