BRM – May 2018 monthly update

1
Monthly Update
May 2018
BRM NAV
$
0.67
SHARE PRICE
$
0.59
DISCOUNT
12.4
%
as at 30 April 2018
First positive month for Australian shares
this year
An uptick in global inflationary pressures has been an
important theme gripping financial markets over the first
few months of the year. This is a significant change in
the financial market narrative away from the “goldilocks”
economic story that has been so supportive of asset
prices in recent years. The “goldilocks” story was built on
economic momentum that was just warm enough to help
company earnings inch higher accompanied with non-
existent inflationary pressures. This meant interest rates
remained anchored at generational low levels. Fears of
higher inflation have changed this and led to higher interest
rates. For example, US ten year treasury yields have almost
doubled from lows in August 2017 hitting 3% this April.
The impact of higher global interest rates and inflationary
pressure on the Australian share market differs sector
by sector. Much of the Australian market tends to be a
beneficiary of subdued interest rates. Sectors like real
estate, utilities and telecommunications are good examples
of this. On the other hand, rising inflation typically means
higher commodity prices, which are supportive of the
commodity and energy sectors of the Australian share
market. These are relatively large sectors in the market
and movements in these sectors will influence the overall
direction of the market.
This leads neatly on to the performance of the Australian
share market in April. The market was up 3.9% (S&P/ASX
200 in Australian dollars) for the month which was its first
positive monthly return for the year. It was the energy
and commodity sectors that led the market higher rising
10.8% and 7.6% respectively. Financials, telcos and utilities,
which tend to be sensitive to the level of interest rates,
underperformed for the month although all three sectors
did post positive returns.
Barramundi performance
Like the overall market, returns for Barramundi were
strong in April with the portfolio rising 3.6% on a gross
performance return basis. The positive contributors to this
A word from the Manager
month’s performance were for stock specific reasons rather
than any broad market drivers. APN Outdoor, which
has been an underperformer in recent months, found
some support with industry data pointing to a rebound
in demand for the out of home advertising sector. APN
is likely to benefit from this and enjoyed a share price
surge. CSL, which is the largest investment in Barramundi,
had another strong month rising 9.6% with investors
anticipating strong upcoming profit results on the back of
a worse than usual flu season in the northern hemisphere.
CSL is a leading global provider of flu vaccines.
Debt collector Credit Corp continues to lag. While this
company has been a poor performer lately, we continue to
rate management highly and are excited by the company’s
prospects in the United States. Credit Corp came out and
reaffirmed profit expectations late in the month which we
think should calm investor’s nerves.
Spotlight on portfolio company NextDC
NextDC has been a very strong performer for Barramundi
over the past twelve months rising 65.6% in Australian
dollars terms to 30 April 2018. In April, the company
announced a major capital raising to fund a very material
expansion of its business. Barramundi participated in the
capital raising.
NextDC is a provider of data centres for both “normal”
companies and for technology firms like Google. As all of
us with smart phones will know, more and more computing
power is based in the “cloud.” Just think of your mobile
banking app, Spotify or your Google drive; these are all
cloud based apps. Companies like NextDC are a critical
link in providing the infrastructure to deliver the cloud
computing services that we have come to rely on.
NextDC’s role in the cloud computing arena is twofold.
First, it provides a location for companies to securely store
computing resources (the computers and data storage that
run apps and websites). Secondly and more importantly,
the company provides an “exchange” that enables all of
the elements that make up the rich cloud ecosystem to be
delivered to users in an efficient and cost effective manner.

Frank Jasper
Chief Investment Officer
Fisher Funds
2
Sector Split
as at 30 April 2018
Key Details
as at 30 April 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
$97m
GEARING
None (maximum permitted 20%
of gross asset value)
10
%

FINANCIALS
21
%
12
%

INDUSTRIALS
19
%
CONSUMER
DISCRETIONARY
INFORMATION
TECHNOLOGY
26
%
HEALTHCARE
3
%
REAL ESTATE
The Barramundi portfolio also holds cash.
5
%

MATERIALS
We believe this ecosystem becomes a powerful moat for
NextDC given that the more users and the more services in
its data centres, the more it is attractive to new clients.
The demand for cloud services is growing at an incredibly
rapid rate and NextDC is sharing in this growth. The
company has announced plans to open new data centres in
Sydney, Melbourne and Perth which will more than double its
existing capacity. In our opinion, doubling capacity will drive
long term earnings growth for NextDC and create significant
shareholder value.

3
April’s Biggest Movers in Australian dollar terms
Typically the Barramundi portfolio will be invested 90% or more in equities.
APN OUTDOOR
+18
%
XERO
+14
%
RIO TINTO
+10
%
BHP BILLITON
+10
%
CSL
+10
%
5 Largest Portfolio Positions as at 30 April 2018
CSL
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 30 April 2018
1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return+1.7%+0.7%+6.3%+4.8%+3.0%
Adjusted NAV Return+3.4%(0.2%)+10.3%+8.1%+3.8%
Manager Performance
Gross Performance Return+3.6%(0.2%)+12.8%+11.0%+7.1%
Benchmark Index^+4.2%(0.2%)+5.4%+10.7%+2.8%
Performance to 30 April 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, 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.