Re-opening of Beutel Goodman Small Cap and Beutel Goodman Income Funds on the Core investment platform
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).
Sun Life Group Retirement Services (GRS) regularly reviews the Core investment platform in response to Client interest and evolving fund offerings in the market.
Effective October 1, 2024, GRS has re-added the Beutel Goodman Small Cap Segregated Fund (BG Small Cap) and Beutel Goodman Income Segregated Fund (BG Income) to the list of funds we make available to clients on our core investment platform. The two funds offer plan sponsors more choice in the Specialty Canadian Equity and Canadian Fixed Income categories on the platform.
About the Funds
The Beutel Goodman Small Cap Fund’s objective is to maximize portfolio returns through capital enhancement and investment income. It seeks long-term capital appreciation primarily through investments in common shares and other equity securities of smaller capitalization Canadian issuers. The benchmark for the fund is the S&P/TSX Small Cap Total Return Index.
The Beutel Goodman Income Fund’s objective is to maximize portfolio returns through capital enhancement and investment income. It does this through interest rate anticipation (duration) 60%; yield curve analysis (positioning) 20%; credit quality weightings 20%. The weighted average minimum quality of the fund will be A, and it can invest up to 20% in foreign securities. The benchmark for the fund is the FTSE Canada Universe Bond Index.
Background
Beutel Goodman & Company Ltd. (Beutel Goodman) decided to close the Beutel Goodman Small Cap Fund to new clients in 2011 to manage capacity. This didn’t affect plan sponsors who were offering the fund, and contributions continued within these plans. Beutel Goodman has recently re-opened the fund to new clients.
GRS stopped offering the Beutel Goodman Income fund to new clients through our Core investment platform in September 2011. This didn’t affect plan sponsors who were already offering the fund, and contributions continued within these plans. The fund was removed because in 2011, GRS introduced a fund managed by SLGI Asset Management Inc. (SLGI) and sub-advised by Beutel Goodman to the platform. To remove duplication, we stopped offering the Beutel Goodman Income Fund. However, in May 2016, SLGI moved to a multi-manager structure for the fund and replaced Beutel Goodman with various other sub-advisors.
It is important to note that GRS’ investment governance activities for the two Beutel Goodman funds have continued without interruption.
Do you have to take any action?
You don’t need to take any action. You may consider whether either or both fund(s) would be a suitable addition to your lineup.
Questions?
Please contact your Sun Life Group Retirement Services representative*.
*In Quebec, registered as a Group annuity plans advisor.