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.

How is the Barrage Fund different to mutual funds?

The basis of the Barrage Fund comes from our belief that it is possible to obtain above average returns by the disciplined application of a value investing approach. We structure and manage our funds with one precise objective: to generate returns. In contrast with mutual funds, we don’t limit the Barrage Fund to one particular region, sector or stock market. We prefer the flexibility created by grouping the best available opportunities in the market into one unique fund.

Secondly, while the majority of mutual funds are invested in more than fifty stocks, we prefer to concentrate our investments in a limited number of companies to profit fully from our best investment ideas.

Finally, part of our remuneration is aligned with the performance of the fund, and so our success is linked directly to that of our clients.

Is Barrage Capital registered with the securities regulatory authority?

Yes, Barrage Capital is registered in Quebec, Ontario, Alberta and British-Columbia as a Portfolio Manager, Investment Fund Manager and Exempt Market Dealer.

Use the link below to visit the Autorité des marchés financier (AMF) register: http://www.lautorite.qc.ca/en/registre-entreprise-individu-en-pro.html

Use the link below to visit the National Registration Search: http://www.securities-administrators.ca/nrs/nrsearchResult.aspx?ID=1325

What is the relationship between CIBC Mellon and the Barrage Fund?

CIBC Mellon, a partnership between CIBC and BNY Mellon, is the custodian, administrator and trustee of the Barrage Fund. CIBC Mellon is therefore responsible for the protection of the assets of Barrage Fund clients. Barrage Capital is the fund manager and cannot access clients’ assets. Investments and withdrawals from the fund are made directly between clients and CIBC Mellon. CIBC Mellon issues monthly statements to all clients.

Is it possible to transfer my registred accounts into the Barrage Fund?

Yes - RRSP, TSFA, LIRA and RRFI accounts held by other financial organizations can easily be transferred into the Barrage Fund. CIBC Mellon undertakes these transfers on behalf of our clients.

Is there a minimum required period of investment?

There is no minimum locked in investment period nor are there charges to leave the fund. However, because the Barrage Fund is based in stocks, it is orientated towards investors with a minimum investment horizon of between 3 and 5 years.

Is investing in the Barrage Fund risky?

In order to answer this question, one should first understand the difference between risk and volatility.

Volatility refers to changes in the price of a stock on a market. We do not consider this a real risk for an investor. An analogy for market volatility might be that of turbulence experienced during a flight; while passing through turbulence can cause discomfort to passengers, it does not generally prevent an aeroplane from arriving at its destination. Investment risk is linked to the performance of the company itself rather than the volatility of its shares on the stock market. A company will experience a variety of risks irrespective of whether its share holdings are private or public (i.e. listed on a stock exchange). Understanding these risks is what matters to us.

We reduce risk by conducting detailed analyses of the companies in which we invest. We look for companies with a business model that is durable, a solid balance sheet and honest, competent management. Additionally, by buying stock that is undervalued we are protected against negative events that could affect our companies. The difference between the stock price and its value can be considered a margin of safety.

In summary, investing in stock markets will always involve a certain amount of risk, which can be minimized by using a value investing approach.

Do superior returns indicate a greater level of risk?

The investment community advocates the idea of a direct link between returns and the level of risk undertaken in order to generate them. While in many cases this link exists, we have observed the opposite effect when applying our approach.

Paying a lower price for a share reduces our risk. Let's take a common example from real estate. Buying a property which is valued at $300,000 for $200,000 protects the purchaser against a downturn in the market. We also find an advantage in potential returns. If the same property is sold for $350,000 we will have made a profit of 75%. In comparison, if the buyer had paid the market value, the profit margin would be reduced to only 17%.

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

Why Barrage's name?

The name of Barrage (which means a dam) is an analogy of hydroelectric dam and a wink to the Quebec origin of the Firm. It symoblizes the accumulation of wealth in Quebec.

A dam is strong and its tank allows accumulation for future performance. Value Investing is a philosophy that takes advantage of stock market declines to generate returns just like a dam would use bad weather to bail out and produce power when it's needed.