Beutel Goodman & Company Ltd: Fund manager series

Headline image for Beutel Goodman & Company Ltd: Fund manager series

Founded over 50 years ago, Beutel, Goodman & Company has evolved to become one of Canada’s largest independent money managers. Interestingly, AMG, a publicly-traded US-based asset management company, indirectly holds a 49% minority interest in Beutel Goodman. 

The asset management company focuses on a value strategy, investing in both domestic and international equities across all industry sectors and market caps. The firm mostly invests in equities and fixed income securities, managing over $41 billion in assets. Focusing on business fundamentals, cash flow analysis, and downside protection, the company employs a bottom-up approach for its investment approach with an active management style. Beutel Goodman manages 17 funds at reasonable MERs.

Public Investments (Top 30 holdings)

Source: Refinitiv Eikon. As of March 16, 2021

Sector Breakdown

 

Source: Refinitiv Eikon. As of March 16, 2021

According to Refinitiv Eikon, Beutel Goodman manages just over $18.5 billion in equity assets, with about 280 securities held.  Known for both equity and fixed-income funds, Beutel holds all five Canadian banks and reliable stable dividend payers in the top ten and top 30. Unsurprisingly, given that most of Beutel’s funds are Canada-focused, we only begin seeing a non-Canadian company past the top 15 positions.

Looking at the sectors, financials top the list at 32%, followed by consumer cyclical at 12.5%, and industrials at 11.4%. Apart from utilities and financials, the portfolio looks well diversified across all sectors.

Regional Breakdown

Source: Refinitiv Eikon. As of March 16, 2021

Recent Activity

Source: Refinitiv Eikon. As of March 16, 2021

Beutel Goodman's holdings might not blow the minds of investors but it offers a good stable of ideas to consider with a value and income tilt in many cases that might be well received in the current environment. 

Happy Investing!

Barkha's Signature

 

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Disclosure: Authors, directors, partners, and/or officers of 5i Research or related companies have a financial or other interest in VZ at the time of publishing