BRM – November 2017 monthly update

1
Monthly Update
November 2017
BRM NAV
$
0.69
SHARE PRICE
$
0.59
DISCOUNT
14.7
%
as at 31 October 2017
WARRANT PRICE
$
0.003
A word from the Manager — A Change in Mood
The Australian share market had a strong month delivering
a 7.3% return in New Zealand Dollars, its highest monthly
return since October 2010. After a tough past six months
this was a welcome change and a good reminder that both
bad and good times in the share market do not last forever.
Barramundi’s performance was even better than the market
with its net asset value up 7.9% for the month. While this
is pleasing it has yet to be reflected in Barramundi’s share
price with the discount widening over the month. The
company has lifted its share buyback program to take
advantage of the temporary widening of the discount. This
is a good time for the company to buy.
We have a constructive outlook for economic growth
with indicators both in Australia and around the globe
increasingly positive. The recent strength in share markets
is a reflection of this strength and the fact that growth is
synchronised around the globe. Central banks around
the world are responding to this with announcements of
gradual reductions in monetary policy stimulus.
Within Australia itself unemployment is low, retail sales
have surprised positively and commodity prices have
remained strong. While consumer debt levels remain at
highs the Reserve Bank of Australia is reluctant to raise
interest rates for fear of prematurely crimping demand. The
setup is therefore quite positive with earnings set to grow,
interest rates likely to remain low and expectations may be
positively surprised.
The Barramundi portfolio is well positioned for a cyclical
demand uptick in Australia should it occur. Many
portfolio companies would benefit from a generally
improving environment including ToxFree Solutions (an
industrial waste management company), Carsales.com,
the banks, APN Outdoor and Ooh! Media (out-of-home
media companies which provide advertising services),
Seek, and recent portfolio addition four wheel drive parts
company ARB.
Seek is a good example of a quality company that we see
as well positioned to benefit from a pick up in activity. Seek
is Australia’s leading online employment portal. Part of our
original investment thesis in Seek was that job adverts were
depressed as the Australian economy was under pressure.
Over time we expected they would recover to more normal
levels. Given the emerging consensus around a broad
economic recovery perhaps more investors are starting to share
our view. Seek’s share price was up over 10% for the month.
Performance in Barramundi’s technology companies
diverged over the month. Both Wisetech, a logistics software
company, and NextDC, were strong performers in October
rising 34% and 18% respectively. In contrast Technology
One disappointed investors with a downgrade to its full year
guidance and the share price fell. In our conversation with
the CEO he outlined that current earnings had been soured
by a number of things that we regard as temporary rather
than permanent. For us this usually represents an opportunity
given that the market often over reacts to short term news.
To get further insight we visited the company and spent a
morning with the Head of Research & Development getting
a deeper understanding of how the company’s solutions are
built and delivered to clients. This reconfirmed the quality of
the business. Overall we do not see a long-term impairment
to Technology One’s investment case and are encouraged by
the company’s increasingly captive customer base. Patience
will be well rewarded.
Manuel Greenland
Senior Portfolio Manager,
Barramundi

1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return+1.8%+0.4%+2.5%+7.1%+2.6%
Adjusted NAV Return+7.9%+11.4%+14.3%+8.2%+3.7%
Manager Performance
Gross Performance Return+7.8%+11.8%+17.3%+11.8%+7.1%
Benchmark Index^+5.1%+6.5%+18.5%+9.0%+2.7%
Sector Split
as at 31 October 2017
Key Details
as at 31 October 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
149m
MARKET CAPITALISATION
$88m
GEARING
None (maximum permitted 20%
of gross asset value)
Performance
to 31 October 2017
2
11
%

FINANCIALS
22
%
13
%
CONSUMER
DISCRETIONARY
20
%

INDUSTRIALS
INFORMATION
TECHNOLOGY
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 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 Non-GAAP Financial Information Policy. A copy of the policy is available at http://barramundi.co.nz/about-barramundi/barramundi-policies/

October’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 23 stocks and cash.
WISETECH GLOBAL
+34
%
NEXTDC
+18
%
NANOSONICS
+15
%
RESMED
+11
%
SEEK
+11
%
5 Largest Portfolio Positions
as at 31 October 2017
SEEK
7
%
CARSALES.COM
7
%
CSL LIMITED
6
%
WISETECH GLOBAL
6
%
NATIONAL
AUSTRALIA BANK
5
%
Total Shareholder Return
to 31 October 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
Oct
2017

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 7.4m
of its shares on market in the year to 31 October 2018
»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 = $0.58
»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.