BRM – March 2018 monthly update

1
Monthly Update
March 2018
BRM NAV
$
0.68
SHARE PRICE
$
0.60
DISCOUNT
12.0
%
as at 28 February 2018
A word from the Manager
Volatility returned with a vengeance in February as global
share markets absorbed stronger US economic data. This
cast some doubt on the benign “not too hot, not too cold”
economic outlook that had been factored into asset prices.
Stronger data points to greater than expected tightening by
central banks which put pressure on the long maturity end
of the interest yield curve. Major share markets around the
world fell by as much as 8% in early February.
Australia performed well in a difficult environment. The
S&P/ASX 200 hit its February low on the 12th having fallen
3.6% from the start of the month. From these lows, the
S&P/ASX 200 gained 4.1%, to close the month up 0.4% in
Australian dollar terms.
Investor focus during the month was split between the
global market ructions and company results being reported
for a majority of the companies that we follow.
Through the lens of the S&P/ASX 200, company results
were generally sound. By the end of the month analysts
had revised estimates of 43% of these companies higher,
compared to 34% where estimates were cut. More
importantly where explicit 2018 fiscal year guidance was
given by companies it led to 1.5x more upgrades than
downgrades. In previous reports we have talked about the
improved confidence that Australian companies have had
over recent months. This results season very much echoed
this theme.
Performance
In February the Barramundi’s gross performance return was
-0.8%. This was behind the benchmark S&P/ASX 200 index
partially hedged into New Zealand dollars which was flat for
the month. We use this benchmark as a guide for comparing
the investment performance of the company to the overall
share market.
Strong earnings results drove the performance of the
leading contributors to portfolio performance. NextDC
(up 17.0% in $A for the month), an owner and operator
of datacentres, crushed market expectation posting
a very upbeat earnings result. NextDC is benefitting
from strong uptake of datacentre space as customers
increasingly move towards cloud computing and
away from traditional on premise IT infrastructure.
NextDC is in the enviable position where every dollar
of revenue added generates a high incremental level
of profitability. The market is beginning to understand
this dynamic. Similarly CSL (+11.4%) and ARB (+8.3%)
demonstrated strong profitability and are delivering
healthy share price gains.
The worst performer for the month was logistics software
provider Wisetech (-31.2%) which, despite posting profit
growth of 32%, lagged bullish market expectations. To
put this in context, and even with February’s steep share
price fall, Wisetech shares have risen 96.4% in the last
twelve months. We continue to be very comfortable
with our investment in the firm. Wisetech is a global
leader in cloud based software to help customers in the
highly competitive freight forwarding industry improve
efficiency. Given the razor sharp margins in this industry
efficiency is a critical customer need. The company has
a significant market opportunity, is led by high quality
management with a clear multiyear growth strategy.
Portfolio changes
This results season was associated with even more
volatile share price responses than normal. This creates
both threats to performance but also opportunities.
Over the course of the month we used share price
weakness to add to positions in both Dominos Pizza
and Credit Corp.
In both cases we felt the market had over reacted to
results. For Dominos the first half was soggy but this
is something we expected and we believe the outlook
for its European business, in particular, is for a strong
second half.

2
Sector Split
as at 28 February 2018
Key Details
as at 28 February 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
163m
MARKET CAPITALISATION
$98m
GEARING
None (maximum permitted 20%
of gross asset value)
11
%
INFORMATION
TECHNOLOGY
19
%
11
%

INDUSTRIALS
18
%
CONSUMER
DISCRETIONARY

FINANCIALS
28
%
HEALTHCARE
3
%
REAL ESTATE
The Barramundi portfolio also holds cash.
5
%

MATERIALS
Credit Corp was “guilty” of not raising guidance. Investors
have got used to CEO Thomas Beregi beating expectations
and setting the bar even higher. That wasn’t the case this
time. There was something much more interesting in this
result, in our view. The company is beginning to gain real
traction in its US business. The US Purchased Debt Ledger
(PDL) market is 10x the size of the Australian market. In the
near term Credit Corp is on-track to create a business that
is of similar size to its domestic PDL operation. At this level
it would have a US market share of around 4%. We believe
it could readily grow beyond this, providing a significant
growth option for the company over the years to come.
Frank Jasper
Chief Investment Officer

3
February’s Biggest Movers in Australian dollar terms
Typically the Barramundi portfolio will be invested 90% or more in equities.
NEXTDC
+20
%
CSL LIMITED
+12
%
ARB CORPORATION
+9
%
DOMINO’S PIZZA
-16
%
WISETECH
-32
%
5 Largest Portfolio Positions as at 28 February 2018
CSL LIMITED
8
%
SEEK
7
%
CARSALES.COM
6
%
NATIONAL
AUSTRALIA BANK
5
%
COMMONWEALTH
BANK OF AUSTRALIA
5
%
The remaining portfolio is made up of another 23 stocks and cash.
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
Total Shareholder Return to 28 February 2018
1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return+0.0%+2.3%+4.1%+5.3%+3.0%
Adjusted NAV Return(1.1%)+0.2%+15.9%+7.4%+3.8%
Manager Performance
Gross Performance Return(0.8%)+1.0%+19.2%+10.5%+7.2%
Benchmark Index^(0.0%)+1.0%+11.1%+10.5%+2.8%
Performance to 28 February 2018
^Benchmark Index: S&P/ASX Small Ords Industrial Gross Index until 30 September 2015 & S&P/ASX 200 Index (hedged 70% to NZD) from 1 October 2015
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/

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.