BRM – March 2017 monthly update

Carmel Fisher
Managing Director,
Fisher Funds
A word from the Manager — Meeting expectations
Actress Pamela Anderson famously said “It’s great to be a
blonde. With low expectations it’s very easy to surprise people”.
I can attest to the fact that brunettes rarely get away with low
expectations; neither do redheads or chief executives of listed
companies (most of whom are grey haired these days).
At this time of the year, managing expectations is what it’s
all about for listed companies, and it is always with a little
trepidation that we await the profit reporting season. Have
our companies done what they said they’d do? Have they
communicated openly to the investment community in the past
six months to manage expectations and guide profit forecasts to
within cooee of actual results? And are their outlook statements
positive enough to prompt analysts to raise expectations for the
next round of profit results?
Unfortunately, the job of chief executives has become even harder
in recent times because a) analysts remain fixated on the bottom
line of company results even though earnings often tell only a
partial story and b) reactions are often outsized compared to
results, such as a 2% profit “miss” against forecasts resulting in a
10% plus share price fall.
It’s fair to say that our expectations of our portfolio companies
have not been dashed so far in the first two months of the year,
but neither have we been blown away by companies over-
delivering. We fared well through the recent profit result round
and have enjoyed exploiting opportunities when the market
either had the wrong expectations or reacted inappropriately
to what were actually good results (as Barramundi Senior
Investment Analyst Terry discusses later).
Managing expectations is a year-round job for politicians and
central bankers. Talk of what we might expect from President
Trump and, to a lesser extent, the Federal Reserve has been a
significant distraction and pastime for market participants this
year. But a distraction is all it is.
The economic and political environment has so far not proven
contrary to expectations; the world is rolling along mostly as
anticipated, despite all the daily noise suggesting otherwise. Just
as company earnings should not be viewed in a vacuum (but in the
context of the underlying business fundamentals and long-term
strategy) economic and political news needs to be considered in
the context of the broad economic outlook which, so far this year,
remains positive and entirely consistent with expectations.
I was very pleased last week to announce the appointment
of Bruce McLachlan as our new Chief Executive Officer, to
take over the reins as I retire from my executive role. Bruce
will be joining Fisher Funds from 18 April 2017 and I really am
delighted as he has a wealth of experience in the financial
sector and importantly, a passion for client service.
When we began our search for a new chief executive,
we knew we wanted someone who understood and was
excited about maintaining and growing the wealth of New
Zealanders. We looked for someone who would continue
our longstanding performance record and our commitment
to exceptional client service. Bruce was an obvious choice
for the role.
Bruce has been CEO of The Co-Operative Bank for the past
four years. Under his leadership, the bank has consistently
achieved top rankings in customer satisfaction and client
service. Previously, Bruce worked for 10 years at Westpac NZ,
where his roles included leading both its business banking
and retail banking businesses; he was also Westpac NZ’s
acting CEO during 2008/9.
I will remain a director of the Barramundi Board and a
member of the Board sub-committees, including the
Barramundi Investment Committee
and look forward to seeing you at
the Annual Shareholder Meeting
later this year.
1
Monthly Update
March 2017
BRM NAV
$
0.65
SHARE PRICE
$
0.63
DISCOUNT
2.7
%
as at 28 February 2017
WARRANT PRICE
$
0.02
Introducing Fisher
Funds’ new CEO:
Bruce McLachlan

Sector Split
as at 28 February 2017
Key Details
as at 28 February 2017
FUND TYPE
Listed Investment Company
INVESTS IN
Growing Australian companies
LISTING DATE
26 October 2006
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO SIZE
25-35 stocks
INVESTMENT CRITERIA
Long-term growth
PERFORMANCE
OBJECTIVE
Long-term growth of capital and
dividends
TAX STATUS
Portfolio Investment Entity (PIE)
MANAGER
Fisher Funds Management
Limited
MANAGEMENT
FEE RATE
1.25% of gross asset value
(reduced by 0.10% for every 1% of
underperformance relative to the
change in the NZ 90 Day Bank Bill
Index with a floor of 0.75%)
PERFORMANCE
BENCHMARK
Changes in the NZ 90 Day Bank
Bill Index + 7%
PERFORMANCE
FEE HURDLE
15% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$0.60 per share
SHARES ON ISSUE
147m
MARKET CAPITALISATION
$92m
GEARING
None (maximum permitted 20%
of gross asset value)
1 Month3 Months1 Year3 Years
(accumulated)
Since Inception
(accumulated)
BRM Adjusted NAV*+2.2%+1.1%+4.2% +17.9% +31.7%
Total Shareholder Return*(1.6%) +2.5% +12.3% +24.5% +33.7%
Gross Performance^+2.2%+1.7%+7.9%+29.4%+83.9%
Benchmark Index^^+3.1%+6.6% +22.0% +29.5% +23.3%
Performance
to 28 February 2017
2
11
%

INDUSTRIALS
18
%
12
%
INFORMATION
TECHNOLOGY
13
%
CONSUMER
DISCRETIONARY
FINANCIALS
2
%
CONSUMER
STAPLES
23
%
HEALTHCARE
4
%
REAL ESTATE
The Barramundi portfolio also holds cash.
7
%
MATERIALS
^ Gross of fees and tax and adjusting for capital management initiatives
^^Benchmark Index: S&P/ASX Small Ords Industrial Gross Index until 30 September 2015 & S&P/ASX
200 Index (hedged 70% to NZD)
*Definitions of non-GAAP measures:
Adjusted Net Asset Value (Adjusted NAV)
The adjusted NAV per share represents the total assets of Barramundi (investments and cash) minus any
liabilities (expenses and tax), divided by the number of shares on issue. It adds back dividends paid to
shareholders and adjusts for:
»the impact of shares issued under the dividend reinvestment plan at the discounted
reinvestment price;
»shares bought on-market (share buybacks) at a price different to the NAV, and;
»warrants exercised at a price different to the NAV at the time exercised.
Adjusted NAV assumes all dividends are reinvested in the company’s dividend reinvestment plan and
excludes imputation credits.
The directors believe this metric to be useful as it reflects the underlying performance of the
investment portfolio adjusted for dividends, share buybacks and warrants, which are capital allocation
decisions and not a reflection of the portfolio’s performance.
Total Shareholder Return (TSR)
The TSR combines the share price performance, the warrant price performance (when warrants are on
issue), the net value of converting warrants into shares and dividends paid to shareholders.
TSR assumes:
»all dividends paid are reinvested in the company’s dividend reinvestment plan at the
discounted reinvestment price and exclude imputation credits, and;
»all shareholders that have received warrants (for free), have subsequently exercised their
warrants at the warrant expiry date and bought shares (if they were in the money).
The directors believe this metric to be useful as it reflects the return of an investor who reinvests their
dividends and, if in the money, exercises their warrants at warrant maturity date for additional shares.
No metric has been included for investors who choose other investment options.

February’s Biggest Movers in Australian dollar terms
Typically the Barramundi portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 25 stocks and cash.
WISETECH GLOBAL
+13
%
SEEK
+9
%
ANSELL
-9
%
BRAMBLES
-11
%
TOX FREE SOLUTIONS
-16
%
5 Largest Portfolio Positions
as at 28 February 2017
CSL
7
%
SEEK
6
%
DOMINOES PIZZA
6
%
RESMED
5
%
NATIONAL
AUSTRALIA BANK
5
%
Total Shareholder Return
to 28 February 2017
3
Oct
2006
Oct
2007
Oct
2008
Oct
2009
Oct
2010
Oct
2011
Oct
2012
Oct
2013
Oct
2015
Oct
2016
Oct
2014
Share Price/Total Shareholder Return
$
1.00
$
1.20
$
0.8 0
$
0.60
$
0.40
Share PriceTotal Shareholder Return
$
1.60
$
0.20
$
0.00
$
1.40

Disclaimer: The information in this update has been prepared as at the date noted on the front page. The information has been prepared as a general summary of the matters covered only, and it is by
necessity brief. The information and opinions are based upon sources which are believed to be reliable, but Barramundi Limited and its officers and directors make no representation as to its accuracy
or completeness. The update is not intended to constitute professional or investment advice and should not be relied upon in making any investment decisions. Professional financial advice from
an authorised financial adviser should be taken before making an investment. To the extent that the update contains data relating to the historical performance of Barramundi Limited or its portfolio
companies, please note that fund performance can and will vary and that future results may have no correlation with results historically achieved.
Barramundi Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 489 7074 | Fax: +64 9 489 7139
Email: enquire@barramundi.co.nz | www.barramundi.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz | www.computershare.com/nz
About Barramundi
Barramundi is an investment
company listed on the New
Zealand Stock Exchange. The
company gives shareholders
an opportunity to invest in a
diversified portfolio of between
25 and 35 growing Australian
companies through a single,
professionally managed
investment. The aim of
Barramundi is to offer investors
competitive returns through
capital growth and dividends.
Capital Management Strategies
Regular Dividends
»Quarterly distribution policy introduced in
August 2009
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Barramundi may include
dividends received, interest income, investment
gains and/or return of capital
» This policy is well received by shareholders as it
provides an attractive and regular return that is
referable to the NAV
»Shareholders who prefer to have increased
capital rather than a regular income stream have
the opportunity to participate in the company’s
dividend reinvestment plan (DRP)
»Shares issued to DRP participants are at a 3%
discount to market price
»Barramundi became a portfolio investment entity
on 1 October 2007. As a result, dividends paid to
New Zealand tax resident shareholders have not
been subject to further tax
Share Buyback Programme
»Barramundi has a buyback programme in place
allowing it (if it elects to do so) to acquire up to 7.2m
of its shares on market in the year to 31 October 2017
»Shares bought back by the company are held as
treasury stock
» Shares held as treasury stock are available to be
re-issued for the dividend reinvestment plan and to
pay performance fees
Warrants
»On 8 November 2016, a new issue of warrants
(BRMWD) was announced
»The warrants were issued at no cost to shareholders
and in the ratio of one warrant for every four
Barramundi shares held
»Exercise Price = $0.63 per Share on the exercise of
each Warrant (adjusted for dividends declared during
the period up to the Exercise Date)
»Exercise Date = 24 November 2017
»The final Exercise Price will be announced and an
Exercise Form will be posted to warrant holders in
late October 2017
Management
Barramundi’s portfolio is managed
by Fisher Funds Management
Limited. Manuel Greenland
(senior portfolio manager) and
Terry Tolich (senior investment
analyst) take the prime
management responsibilities
and are highly experienced in
researching and investing in
Australian growth companies
with over 50 years combined
experience. Fisher Funds is based
in Takapuna, Auckland.
Board
The Manager has authority
delegated to it from the
Board to invest according to
the Management Agreement
and other written policies.
The Board of Barramundi
comprises independent
directors Alistair Ryan (Chair),
Carol Campbell and Andy
Coupe; and non-independent
director Carmel Fisher.