Beutel Goodman Revised SIP&G

April 28, 2014

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada).

Effective March 14, 2014, Beutel, Goodman & Company Ltd. (Beutel Goodman) revised their Statement of Investment Policies and Guidelines (SIP&G) for the following funds which are available through Sun Life Financial's Core investment platform:

  • Beutel Goodman Global Equity
  • Beutel Goodman International Equity

What changed?
A change was made to the Diversification & Quality Standards section of the SIP&G. The regional exposure guidelines are now based on absolute percentages. Previously, they were measured in relative terms to the benchmark. The portfolios will continue to be invested prudently with respect to geographic concentrations. Approximate geographic limits - expressed as a percentage of the total equities at market value - will be as follows:

Beutel Goodman International Equity - Current

Region % of Equities
  Minimum Maximum
EAFE 75% 100%
Emerging Markets 0% 15%

Beutel Goodman International Equity - Previous

Region % of MSCI EAFE Index
  Minimum Maximum
Europe 70% 130%
Pacific 50% 150%


Beutel Goodman Global Equity - Current

Region % of Equities
  Minimum Maximum
US 35% 70%
EAFE 35% 70%
Emerging Markets 0% 10%

Beutel Goodman Global Equity - Previous

Region % of MSCI World Index
  Minimum Maximum
US 70% 130%
EAFE 70% 130%
Emerging Markets 50% 150%

There were no other changes made to the other funds managed by Beutel Goodman.

Beutel Goodman is beginning to see better value opportunities concentrated in certain geographic regions and do not want to be forced to hold stocks with greater perceived down-side risk and less upside potential, while passing up better opportunities due to the constraints of the old SIP&G.  For example, the International Equity fund has seen a greater increase in holdings in Europe, excluding the U.K., over the past year, adding 18 new names since the beginning of fourth quarter of 2012. The changes in the SIP&G will allow the firm to add additional names without regional constraints should the opportunity arise.

Currently, the firm is comfortable with the positioning of both funds and do not see any notable or material changes to the geographic exposures at this time.

Beutel Goodman's SIP&G details the investment objectives, strategies and guidelines for the investment funds managed by Beutel Goodman. A copy of the revised fund profile document is available on the Sun Life Financial Plan Sponsor Services website at When logged into the website, under the Administration and reporting tab, select Group Retirement Services, then on the top navigation menu select Investments & Governance Reports.

Please contact your Sun Life Financial Group Retirement Services representative.