Key Morningstar Metrics for Beutel Goodman American Equity F
- Morningstar Medalist Rating: Neutral
- Morningstar Rating: ★★★
- Process Pillar: Above Average
- People Pillar: Above Average
- Parent Pillar: Above Average
Beutel Goodman American Equity has many positive traits, but its recent performance has been underwhelming. The fund earns Above Average People and Process Pillar ratings. The managers stand out from their peers by focusing on both value and quality. The team spend its time researching companies to build a concentrated portfolio of 25-35 stocks that tick both boxes.
Risk management is an important piece of the process. When a stock hits the team’s target price, it sells a third of the position and reassesses the idea to reduce the risk of loss. If a stock drops below a set price, another analyst reviews it to control for personal biases and check whether the original thesis holds up. If it doesn’t, the team will sell the stock.
Veteran managers Rui Cardoso and Glenn Fortin, who each have more than 20 years of experience, lead the strategy. Cardoso heads the firm’s US and international equity research team and has managed the strategy with Fortin since joining the firm in 2013. Fortin has been a manager since 1997. The duo works with a team of five seasoned analysts and two junior researchers to assess ideas.
The portfolio usually invests in mid- and large-cap companies, though it has leaned more toward midcaps over the last four years. The fund has more exposure to equities that behave like and have the fundamental characteristics of value stocks than 85% of all US Equity Morningstar Category funds. So an index like the Russell 1000 Value, which measures the performance of US large- and mid-cap value stocks, is a better yardstick for the fund’s investment style than the Morningstar US Market Index.
Beutel Goodman American Equity: Performance Highlights
Over Rui Cardoso and Glenn Fortin’s common tenure from June 2013 through April 28, 2025, the F series gained 12.3% annualized, outpacing the Russell 1000 Value Index’s 11.9% gain and the US equity category average of 11.9%. The US Market Index registered a 15.2% gain over the same period.
In the past year through April 28, 2025, the strategy experienced a 2.3% loss, underperforming the Russell 1000 Value’s 8.0% gain and the peer group’s return of 7.5%. The managers had a handful of winners, like Kellanova and eBay, but a few holdings fell a lot due to tariff concerns, including auto industry suppliers Polaris and Gentex Corporation, and motorcycle manufacturer Harley Davidson.
Recent performance hasn’t been stellar, and the F Series MER of 1.1% is priced about average for fee-based share classes in a peer group with many cheap options. But the strategy may still appeal to investors wanting exposure to value stocks.
The author or authors do own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
