Who is a Barrage Fund investor?

A Barrage Fund investor is someone looking for a fund manager who applies a simple yet effective investment methodology and who wishes to obtain a performance superior to stock market indices over the longer term.

Because the Barrage Fund is held in stocks, it is suited for someone looking to invest for the mid to long term and who is tolerant of the normal volatility that is part of stock market investments.

What is value investing?

Value investing is the investment philosophy that underlies the Barrage Fund. This approach was first taught at Columbia University in New York in the late 1920s. The successes and notoriety of former students, including Warren Buffett, has helped to popularize this approach. It consists of buying securities of companies when they are undervalued so that they can be resold on the day when their stock market price will reflect their fair value.

To learn more about value investing, visit the "Firm" page of our website.

How is the Barrage Fund different from mutual funds?

Unlike mutual funds, the Fund is not limited to any region, sector or market capitalization. The managers have the flexibility to bundle the best opportunities available on the market into a single fund.

While most mutual funds hold more than 50 stocks, the managers prefer to concentrate the portfolio in a limited number of companies in order to take full advantage of the best investment ideas.

Finally, the fee structure, which is proportional to the returns obtained, brings the interests of the managers in line with those of the clients.

What are the management fees?

The management fees consists of a base fee and a performance fee.

The base fee is equal to 1% of the assets and is charged monthly (0.08%).

The performance fee is paid only when the fund is performance is above 5% per year before base fees. When the fund exceeds this performance threshold, Barrage Capital receives 20% of the surplus while customers retain 80%. The performance fee is an incentive for managers to provide the best possible returns to customers.

There are no other fees for Barrage Capital's clients (administrative, transfer, purchase or redemption). The management fees are paid out of the Fund and all returns shown on the website and in our marketing materials are after fees.

Is client money safe?

Yes. Client money is deposited with CIBC Mellon, the custodian, administrator, and trustee of the Barrage Fund. The role of Barrage Capital is limited to managing and distributing the Fund. Monthly statements, transaction confirmations, tax statements and annual reports are issued and sent to clients by CIBC Mellon. This company has been a partnership since 1996 between CIBC and the Bank of New York Mellon. Headquartered in Toronto, it employs more than 1,500 professionals and administers nearly $ 2 trillion in assets. https://www.cibcmellon.com/en/home.jsp

Is Barrage Capital registered with securities regulatory authorities?

Yes, Barrage Capital is registered in Quebec, Ontario, Alberta and British Columbia in the categories of Portfolio Manager, Investment Fund Manager and Exempt Market Dealer.

You can consult the register of the Authorité des Marchés Financiers at the following address: https://lautorite.qc.ca/en/professionals/

You can consult the National Registration Search Engine at the following address: http://www.autorites-valeurs-mobilieres.ca/nrs/nrsearch.aspx?id=850

Is investing in the Barrage Fund risky?

In order to answer this question, one must first explain the distinction between risk and volatility. Volatility refers to changes in the price of a share on the stock market. Barrage does not believe this constitutes a real risk for the investor. Volatility could be compared to the turbulence felt on most flights. Although these turbulences may cause concern for many passengers, they almost never prevent an aircraft from reaching its destination.

The risk of an investment is related to the company itself and not to the volatility of its share price. A company faces several risks whether it is traded on the stock exchange or not. These are the risks that really matter.

The managers mitigate these risks through in-depth analysis of portfolio companies, selecting dominant companies with competitive advantages and competent executives. In addition, by purchasing the securities below their fair value, they protect the Fund against adverse events that may affect those securities. The difference between the price of a share and its value is therefore considered to be a "margin of safety".

In conclusion, investing in the stock market entails certain risks, which can however be minimized by the application of Value Investing.

Do superior returns indicate a greater level of risk?

The investment community advocates for the idea of a direct link between performance and the risk assumed to generate it. Although this link exists in many cases, the managers observe the opposite effect in the application of value investing.

Paying a lower price for a security reduces the risk. Take a common example in real estate. Buying a property worth $300,000 for the price of $200,000 protects the buyer against a certain decline in the market. However, he finds an equally important advantage in terms of the potential for returns. If the same property is resold at a price of $ 350,000, the gain will be 75%. In the event that the buyer would have paid the full value at the time of purchase, the gain would have been only 17%.

From this perspective, a greater profit does not necessarily entail a larger level of risk.

Are returns guaranteed?

No. Past performance is not a guarantee of future results.

Invested capital is not guaranteed either because it is invested in an equity fund that is subject to volatility.

Is this the right time to invest in the Barrage Fund?

In our view, since it is impossible to predict the direction of the markets in the short term, the “right time” to invest in the Barrage Fund is when you understand the investment philosophy, have taken the time to get to know us well and trust the managers and the strategy enough to make a long-term investment.

One must understand that the managers continually make investment decisions to maximize the potential of the portfolio. Trying to invest at the “right time”, for example by deferring your investment in the Barrage Fund to synchronize it with a market downturn, amounts to making an investment decision and market timing over and above the professional management of the Fund.

How are assets held with other financial institutions transferred?

Assets invested in accounts held at other financial institutions are transferred directly to CIBC Mellon. Barrage is responsible for sending the signed T2033 form at the opening of the account. The transfer usually takes 2 to 4 weeks.

Is it possible to invest in the Barrage Fund through a financial advisor?

Yes, you must deal with an advisor who acts under a discretionary mandate or be an accredited investor because the Barrage Fund is a product distributed under a prospectus exemption. The advisor must be under the banner of a dealer with whom Barrage has a dealer agreement. These advisors usually manage portfolios of more than $250,000 and the minimum investment in the Barrage Fund is $50,000. The advisor's fees are added to the Fund's management fees because you benefit from advisory services on your entire portfolio.

Can I invest through my business?

Yes, you can invest throught your business. We have individuals and companies as clients.

Is there a minimum holding period?

As an equity fund, the Barrage Fund is suitable for investors with an investment horizon of 5+ years. That being said, there is no minimum holding period or exit fees.

How often is the Barrage Fund's portfolio disclosed to clients?

The portfolio is disclosed to clients 3 times a year in financial statements and at the annual meeting. The portfolio is also commented on twice a year through investor letters.

How do clients access their accounts?

Clients receive monthly statements, annual reports, and tax documents by mail or online, depending on their preference. These documents are produced by CIBC Mellon.

Are the managers invested in the Barrage Fund?

Yes. The managers and their families have a significant stake in the Barrage Fund.

Why the name "Barrage"?

The name Barrage, which stands for "dam" in French, is a nod to the hydroelectric dams that represent the creation of wealth in Quebec.

A dam is solid and its reservoir allows accumulation for future yield. Value investing is an approach that takes advantage of stock market declines to generate gains, just as a dam uses bad weather for replenishment and to generate energy in a timely manner.