BRM – October 2017 monthly update

1
Monthly Update
October 2017
BRM NAV
$
0.64
SHARE PRICE
$
0.58
DISCOUNT
9.5
%
as at 30 September 2017
WARRANT PRICE
$
0.002
A word from the Manager – Quality Pays
Fisher Funds’ Chief Investment Officer, Frank Jasper
explains what ‘quality’ means when looking to invest.
We talk a lot about “quality” when we consider potential
investments for the Barramundi portfolio. The idea of quality
is central to the STEEPP investment process which is the lens
we use whenever we look at a company.
One of the most important measures of a company’s quality
are the returns that it is able to generate on each dollar that
it invests on behalf of shareholders. This is common sense.
If a company can earn a 15% return on every dollar invested
versus another company that only earns 5%, it is pretty
obvious that the company generating the 15% return is a
higher quality company.
While this may be obvious, it understates just how important
high returns on invested capital are to creating future value
for shareholders.
Let’s imagine two companies. Both of our mythical companies
earn $100 profit this year. Typically a company would pay
some of these profits out as dividends and retain some of
these profits to fuel future growth.
For our example let’s assume that half of all profits are
paid out. Let’s go one step further and assume one of our
companies, Company 1, is high quality and generates a 15%
return on every dollar invested. The other company, Company
2, is a lower quality company which has a 5% return on
invested capital.
As Warren Buffett says “time is the friend of the wonderful
company and the enemy of the mediocre.” The idea is aptly
demonstrated by our two mythical companies. Company 1
generates strong returns on every dollar of capital it retains.
These higher returns mean more profits over time. Company
1 is able to grow future profits rapidly. Company 2, the poorer
quality company, grows future profits at a much slower clip.
The difference is stark. In our example, using our assumption
of a consistent rate of return on invested capital and a
50% dividend pay out, the profits of Company 1 more than
double over the next ten years. Comparatively, profits for the
lower quality Company 2, rise only 28% over the same time.
Quality pays — Profits over time
Frank Jasper
Chief Investment Officer,
Fisher Funds
It’s pretty clear which of these two companies you would
want to own. Quality really does pay off in the long run and
it’s these quality companies that we seek to include in the
Barramundi portfolio.
Profil ($)
220
200
180
160
140
120
100
Company 1 — High Quality
0 1 2 3 4 5 6 7 8 9 10
Company 2 — Lower Quality
Source: Fisher Funds

1 Month3 Months1 Year3 Years
(accumulated)
Since Inception
(accumulated)
Corporate Performance
BRM Adjusted NAV(0.7%)+2.9%+1.7%+19.8%+38.6%
Total Shareholder Return+0.5%(1.5%)+0.7%+20.9%+30.6%
Manager Performance
Gross Performance Return(0.0%)+3.1%+4.6%+32.4%96.9%
Benchmark Index^(0.6%)+1.8%+10.7%+25.6%+27.5%
Sector Split
as at 30 September 2017
Key Details
as at 30 September 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
$0.57
SHARES ON ISSUE
150m
MARKET CAPITALISATION
$87m
GEARING
None (maximum permitted 20%
of gross asset value)
Performance
to 30 September 2017
2
10
%
INFORMATION
TECHNOLOGY
21
%
12
%
CONSUMER
DISCRETIONARY
20
%

INDUSTRIALS

FINANCIALS
26
%
HEALTHCARE
3
%
REAL ESTATE
The Barramundi portfolio also holds cash.
^Benchmark Index: S&P/ASX Small Ords Industrial Gross Index until 30 September 2015 & S&P/ASX 200 Index (hedged 70% to NZD)
Non-GAAP Financial Information
Barramundi uses non-GAAP measures, including adjusted net asset value, gross performance return and total shareholder return. The rationale for using such non-GAAP measures is as follows:
»adjusted net asset value – the underlying value of the investment portfolio adjusted for capital allocation decisions,
»gross performance return – the Manager’s portfolio performance in terms of stock selection and hedging of currency movements, and
»total shareholder return – the return to an investor who reinvests their dividends, and if in the money, exercises their warrants at warrant maturity date for additional shares.
All references to including adjusted net asset value, gross performance return and total shareholder return in this monthly update are to such non-GAAP measures. The calculations applied to non-GAAP measures
are described in the Barramundi Global Non-GAAP Financial Information Policy. A copy of the policy is available at http://barramundi.co.nz/about-barramundi/barramundi-policies/

September’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 22 stocks and cash.
TOXFREE
SOLUTIONS
+12
%
WISETECH GLOBAL
+9
%
CREDIT CORP GROUP
+7
%
APN OUTDOOR
+7
%
RAMSAY HEALTHCARE
-8
%
5 Largest Portfolio Positions
as at 30 September 2017
CSL LIMITED
7
%
CARSALES.COM
7
%
SEEK
6
%
NATIONAL
AUSTRALIA BANK
5
%
ARB CORPORATION
4
%
Total Shareholder Return
to 30 September 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 quality
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
»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),
Terry Tolich (Senior Investment
Analyst) and Delano Gallagher
(Investment Analyst) have prime
responsibility for managing the
Barramundi portfolio. Together
they have over 50 years combined
experience and are very capable
of researching and investing in the
quality Australian companies that
Barramundi targets. 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.