BRM – February 2018 monthly update

1
Monthly Update
February 2018
BRM NAV
$
0.69
SHARE PRICE
$
0.60
DISCOUNT
13.0
%
as at 31 January 2018
A word from the Manager
Welcome to our first monthly update for 2018
2018 got off to a positive start for the Barramundi
portfolio with gross performance return of 0.8% for the
month. This was ahead of Barramundi’s S&P/ASX200
benchmark which was down slightly due to both a weaker
Australian market and small rise in the NZ dollar.
Underpinning Barramundi’s portfolio outperformance
were its overweight positions in the Healthcare and IT
sectors. These sectors tend to offer the combination
of quality and higher earnings growth that we seek.
Notable performances among our Healthcare stocks
included ResMed which delivered its second quarter
FY18 earnings result. ResMed’s result showed continuing
solid revenue growth and an encouraging improvement
in margins.
There were also several strong performers among our IT
exposures including WiseTech, which was the standout.
Although there was no specific news from the company,
analysts continue to lift their earnings forecasts and we
believe this business has a long growth runway in front of
it. The IT sector also provided our laggard for the month,
NEXTDC. There was on-going news flow about its battle
over the future of Asia Pacific Data Centre Trust which
owns the property in which three of NEXTDC’s data
centres are located. However, we suspect January’s share
price weakness was probably due to a broker report
suggesting sales of capacity in its second Melbourne
data centre were lagging expectations. We take a longer
term view. Given the exponential growth of data, we
expect the company to earn attractive returns on the
capital it is deploying in new capacity.
The summer break also saw a takeover offer announced
for long term Barramundi portfolio company, ToxFree
Solutions. Barramundi’s investment in ToxFree has
been a somewhat bumpy ride as ToxFree’s earnings
were greatly impacted by a slowdown in resources and
oil and gas activity over the past few years. However,
ToxFree’s management fought back from that challenge
pivoting the business towards medical waste with
the Daniels acquisition and in the process restored
significant shareholder value. In December 2017, listed
waste management firm Cleanaway made an attractive
offer to takeover ToxFree, and it was pleasing to see
the ToxFree management strategy, and our patience,
rewarded with the company acquired at a healthy
premium; an outcome that we
had long thought was likely.
Frank Jasper
Chief Investment Officer

1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return(1.6%)+4.7%+2.5%+6.9%+3.0%
Adjusted NAV Return+0.6%+3.3%+19.9%+9.0%+3.9%
Manager Performance
Gross Performance Return+0.8%+4.1%+22.8%+12.4%+7.3%
Benchmark Index^(0.6%)+2.4%+14.7%+12.0%+2.8%
Sector Split
as at 31 January 2018
Key Details
as at 31 January 2018
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
$0.55
SHARES ON ISSUE
165m
MARKET CAPITALISATION
$99m
GEARING
None (maximum permitted 20%
of gross asset value)
Performance
to 31 January 2018
2
10
%

FINANCIALS
19
%
11
%

INDUSTRIALS
17
%
CONSUMER
DISCRETIONARY
INFORMATION
TECHNOLOGY
27
%
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/
5
%

MATERIALS

3
January’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.
RESMED
+13
%
WISETECH
+9
%
LINK ADMINISTRATION
+6
%
CREDIT CORP
-5
%
APN OUTDOOR
-7
%
5 Largest Portfolio Positions
as at 31 January 2018
CSL LIMITED
7
%
CARSALES.COM
7
%
SEEK
7
%
NATIONAL
AUSTRALIA BANK
5
%
COMMONWEALTH
BANK OF AUSTRALIA
5
%
Total Shareholder Return
to 31 January 2018
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
»Warrants put Barramundi in a better position to grow
further, improve liquidity, operate efficiently and pursue
other capital structure initiatives as appropriate
»A warrant is the right, not the obligation, to purchase
an ordinary share in Barramundi at a fixed price on a
fixed date
»There are currently no warrants on issue
Management
Barramundi’s portfolio is managed
by Fisher Funds Management
Limited. Frank Jasper (Chief
Investment Officer), Terry Tolich
(Senior Investment Analyst) and
Delano Gallagher (Investment
Analyst) have prime responsibility
for managing the Barramundi
portfolio. Together they have
significant 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.