Veteran international equity manager joins Beutel Goodman

Stanley Wu comes on board as this Neutral-rated fund grapples with a history of weak stock selection.

Jeffrey Bunce, CFA 6 December, 2016 | 6:00PM

 

 

Jeffrey Bunce: Beutel Goodman International Equity Fund has struggled, finishing close to the bottom of the International Equity Category over the past three and five years. Some of its troubles during this time have had to do with an out-of-favour investment style and currency headwinds, which should reverse course or even out over time. But more so, it's the fund's stock selection that has been challenged. And with Beutel's concentrated portfolio of between 25 and 35 names, where every position has an impact, these stock missteps have really hurt the overall record.

At the same time, the managers have stayed patient and maintained conviction in their disciplined value-oriented approach. And even though this hasn't translated into success with this fund yet, this approach has worked very well for the firm's Canadian equity and U.S. equity strategies.

Also within the past month, Beutel has announced the hiring of analyst and portfolio manager Stanley Wu, who joined the firm's non-domestic equity team on November 15th. He's coming on board as co-manager of the International Equity Strategy alongside current co-manager K.C. Parker. To make room for him on the strategy, former co-manager Colin Ramkissoon moved off the fund, but will continue with his duties on Beutel's global equity strategies. With 15 years' experience, Wu joined from Jarislowsky Fraser, where he co-managed the firm's International Equity Strategy. The hiring of a veteran PM is a positive and should provide a boost to the team.

Wu also clears the way for team member and PM Gavin Ivory to retire towards the end of 2017. However, at this time, it's too early to tell whether Wu can help lead this fund past its poor historical performance. This uncertainty results in a Morningstar Analyst Rating of Neutral.

For Morningstar.ca, I'm Jeff Bunce.

About Author

Jeffrey Bunce, CFA

Jeffrey Bunce, CFA  Jeffrey Bunce, CFA, is a senior investment analyst for Morningstar’s Investment Management group.