BRM – June 2018 monthly update

1
Monthly Update
June 2018
BRM NAV
$
0.69
SHARE PRICE
$
0.61
DISCOUNT
12.1
%
as at 31 May 2018
The Australian market rebounded strongly in April following a weaker first quarter. May
continued the upward trend with the market rising as the healthcare and consumer
discretionary sectors performed well. The Barramundi portfolio was up 3.3% on a gross
performance basis for the month.
Recently I was presenting to clients in Wellington. As I am originally from the Hutt Valley I can
say this; Wellington was on its very best Wellington behaviour. It was tempestuous, with that
special horizontal rain that I am convinced blows straight in from Antarctica and has a gift for
finding a way down the neck of your jacket and then chills you to the bone.
One of the things I covered in my presentation was the idea that building long term
wealth requires a little bravery – being brave enough to take positions that feel a little
uncomfortable at the time or that may even seem counterintuitive. Ultimately, though,
swimming against the popular tide has, on many occasions, resulted in our best long term
successes.
While the environment for Barramundi portfolio company Brambles hasn’t been quite
as tempestuous as a Wellington southerly, it has been difficult. On this occasion though
we think the storm has delivered us the opportunity to increase our investment at a very
reasonable price. While it takes a little bravery to add to an investment when the news on
the company isn’t exactly great, we think this is precisely the right time to do it, given our
belief that Brambles is a high quality company with sound long term growth prospects.
Brambles is the leading global supplier of pooled pallet and reusable crate solutions to
its customers, primarily in the fast moving consumer goods sector. The company has a
long history of generating shareholder wealth and a track record of making smart strategic
decisions.
At the moment, Brambles is facing transport and plant cost pressures in its key US pallets
market. The list of challenges is long; higher fuel prices, driver shortages, some changes in
customer behaviour in response to higher transport costs, higher lumber costs, inefficiencies
due to capacity constraints, and changes in commercial relations with some retailers. These
headwinds have pressured Brambles’ profit margins in the US.
The company is working to relieve these pressures by implementing surcharges and
adjusting contract terms as contracts rollover. It is also investing in a plant automation
programme that will modernise its US service centre network to a standard similar to its
more efficient European network. While these initiatives all make sense to us, these actions
with the exception of surcharges, are not a short term fix and we expect pressure to still be
evident on the company’s near term earnings.
Brambles’ margin pressures are currently being reflected in its share price, with the valuation
of the company, based on metrics like the price to earnings ratio, sitting at five year lows. We
believe this is the opportunity. Brambles is growing its revenues in mid-single digit levels,
and we believe the company will continue to keep growing at this rate for years to come.
A word from the Manager
We are pleased to
welcome Robbie
Urquhart to the Fisher
Funds team as the
Senior Portfolio Manager
– Australian equities.
Robbie joined us at the
start of June and will
be responsible for the
Barramundi portfolio. He
is supported by Senior
Investment Analyst, Terry
Tolich, and Investment
Analyst, Delano
Gallagher.
Robbie is an experienced
investment professional
having worked as a
portfolio manager and
analyst since 2001 in
both New Zealand
and London where
he held various roles
with Trafalgar Copley,
Copenhagen Capital
and FNZC. Robbie looks
forward to meeting
Barramundi shareholders
at the Annual Meeting
later this year.
People
Update

2
Sector Split
as at 31 May 2018
Key Details
as at 31 May 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
164m
MARKET CAPITALISATION
$100m
GEARING
None (maximum permitted 20%
of gross asset value)
11
%

FINANCIALS
22
%
12
%

INDUSTRIALS
18
%
CONSUMER
DISCRETIONARY
INFORMATION
TECHNOLOGY
24
%
HEALTHCARE
3
%
REAL ESTATE
The Barramundi portfolio also holds cash.
5
%

MATERIALS
Frank Jasper
Chief Investment Officer
Fisher Funds Management Limited
As Brambles solves its short term cost challenges, margins
should improve turning forecast revenue growth into even
healthier profit growth.
We love buying shares in high quality, growing companies
on sale and have added to Barramundi’s investment in
Brambles. We believe now is the time to be patient, ride out
the storm and enjoy the good weather to come. We all know
you can’t beat Wellington on the inevitable good day that
follows the storm.
23
22
21
20
19
18
17
16
Jan
2013
Jan
2013
Jan
2013
Jan
2013
Jan
2013
Source - FactSet Research Systems, Fisher Funds
Brambles PE Ratio - Next 12 Months Expected Earnings

3
May’s Biggest Movers in Australian dollar terms
Typically the Barramundi portfolio will be invested 90% or more in equities.
WISETECH GLOBAL
+46
%
DOMINO’S PIZZA
+17
%
NANOSONICS
+10
%
TECHNOLOGY ONE
-13
%
LINK ADMINISTRATION
-17
%
5 Largest Portfolio Positions as at 31 May 2018
CSL
8
%
SEEK
7
%
CARSALES.COM
6
%
COMMONWEALTH
BANK OF AUSTRALIA
4
%
NATIONAL
AUSTRALIA BANK
4
%
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 31 May 2018
1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return+3.4%+4.2%+8.1%+4.5%+3.3%
Adjusted NAV Return+3.1%+4.0%+18.1%+8.0%+4.1%
Manager Performance
Gross Performance Return+3.3%+4.0%+20.2%+11.0%+7.4%
Benchmark Index^+1.3%+1.2%+11.0%+8.8%+2.9%
Performance to 31 May 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, adjusted NAV return, 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,
»adjusted NAV return – the return to an investor after fees and tax,
»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, adjusted NAV return, 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. Robbie Urquhart
(Senior Portfolio Manager),
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.