BRM – March 2022 monthly update

1
A WORD FROM THE MANAGER
In February, Barramundi’s gross performance return was down
(2.8%) and the adjusted NAV was down (2.9%). This compares to
the ASX200 Index (70% hedged into NZ$) which was up 2.1%.
February heralded the twice-yearly earnings reporting season
for the ASX. On the whole, earnings across industries were well
received by the market. However, the broader macro concerns we
wrote about last month (inflation and rising interest rates) coupled
with the outbreak of war in Europe, dictated returns across market
sectors. These events helped drive the Energy sector (+5.8%)
higher in the month. The Consumer Staples (+5.6%) and Utilities
(+3.0%) sectors also performed well. The Information Technology
(-6.9%), Consumer Discretionary (-5.8%) and Communication
Services (-2.2%) sectors lagged.
Portfolio News
Our portfolio companies in aggregate, delivered a strong set
of earnings results, and were cautiously optimistic about their
outlooks. We think our portfolio companies are well positioned to
keep growing their earnings and doing well over time.
Recent portfolio addition Cochlear (+15.8% in A$), released
robust results despite Omicron impacting hospital access. This
reduced the number of cochlear implants in some regions. Its
global scale shone through with worst hit areas such as the US
offset by a recovery in cochlear implants in Western European
and Emerging Markets. Cochlear expects hospital theatre access
to improve as the Omicron wave subsides, albeit at different rates
across regions.
PWR Holdings (+11.0%) reported strong growth across all
divisions. Its motorsport division benefitted from the return of the
European racing series that had previously been suspended due
to Covid. It also had additional work stemming from changing
Formula 1 regulations. PWR commenced supplying cooling
products for the long-awaited Aston Martin Valkyrie supercar. Its
focus on research and development is bearing fruit with sales in its
Emerging Technology division growing almost +40% in the period.
The last two years have been difficult for Ooh! Media (+4.9%)
as Covid-related restrictions have reduced audiences (and hence
spending) for its outdoor advertising formats. Happily, 2021 was
a year of improvement with OML reporting a return to profit on
an underlying basis for its December 2021 year. With the end of
lockdowns in NSW and Victoria in October, OML finished 2021
strongly. Several of its segments delivered revenue in November
and December above the same months of 2019 (pre-Covid). This
momentum has been maintained into 2022 and bodes well for
continuing earnings recovery if Covid restrictions continue to
ease.
During the month Brambles (+2.4%) reported a 3% rise in
underlying NPAT for its December 2021 half year. The increase
was muted by higher costs for the company’s wide-ranging
business transformation programme. Excluding these costs,
earnings rose by about 8%, consistent with the increase in
revenue for the half year. This was a commendable earnings
performance as the period was characterised by very high levels
of input cost inflation (lumber & transport) and operational
inefficiencies stemming from Covid-related supply chain
disruptions. Brambles was able to offset the impact of higher
costs through price adjustments, the contractual protections
embedded in its contracts (indexation & surcharges) and its
own efficiency initiatives. These all speak to the strength of
its competitive position. The company modestly increased its
earnings guidance for the June 2022 year.
Audinate (-5.8%) reported revenue growth of 33% over the
prior half year and highlighted the continuation of a strong
customer order book of demand for its products. The number
of customers using its technology continues to expand. An
additional 32 new customers shipped products including
Audinate’s Dante technology in them for the first time in the
period. Audinate expanded its capability in networked video by
acquiring a team of video hardware specialists in Belgium. Along
with its video software team in the UK, this acquisition provides
a good platform for Audinate to accelerate the development of
networked video and AV products. With $60m of cash on hand,
Audinate has a strong balance sheet to help fund its growth
plans.
Despite all posting strong half year results with solid outlook
statements, REA (-9.3%), SEEK (-8.0%) and Carsales (-7.0%)
all fell during the month. SEEK grew core Australian revenues
+72% as hiring conditions rebounded from a Covid impacted
2020. Market conditions remained robust through January and
SEEK increased its full year 2022 earnings guidance. Likewise, REA
commented that the strong property market conditions seen in
late 2021 had continued into January. Carsales reported revenue
growth of +21.8% in the year, with strong contribution from all
key divisions. It maintained its guidance for strong profit growth
in full year 2022. All three companies are well positioned for
future growth.
1
Share Price Premium to NAV (using NAV to four decimal places).
MONTHLY UPDATE
March 2022
BRM NAV
$
0.74
$
0.85
Share Price
PREMIUM
1
15.3
%

as at 28 February 2022

SECTOR SPLIT
as at 28 February 2022
KEY DETAILS
as at 28 February 2022
FUND TYPE
Listed Investment Company
INVESTS IN
Growing Australian companies
LISTING DATE
26 October 2006
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO SIZE
20-35 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 FEE
HURDLE
Changes in the NZ 90 Day Bank
Bill Index + 7%
PERFORMANCE FEE
10% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$0.79
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
265m
MARKET CAPITALISATION
$225m
GEARING
None (maximum permitted 20%
of gross asset value)
5
%
19
%
23
%

INDUSTRIALS
18
%
COMMUNICATION
SERVICES

HEALTH CARE
26
%
3
%

FINANCIALS
CONSUMER
STAPLES
5
%
CONSUMER
DISCRETIONARY
Nanosonics fell -17.5% during the month after announcing
that it is no longer going to rely on General Electric to distribute
products for it in the US. Nanosonics will distribute directly to
customers, as it does in other regions. This impacts near-term
revenue as General Electric runs down its inventory in anticipation
of the change. However, the move to a direct sales model gives
Nanosonics greater control over its customer relationships which
is strategically sensible. It also arguably increases Nanosonics
opportunity to sell more products to new departments within the
hospitals previously served by General Electric.
Domino’s (-23.7%) result for its December 2021 half year was
not well received. Domino’s reported a 5% decline in profit
for the half year, primarily due to a drop in earnings from its
Japanese business. This had two causes. First, after Japan’s State
of Emergency ended in October, restrictions on restaurant dining
was removed. This led to a step-down in Domino’s sales. Second,
the business is bearing the cost of the large number of immature
company-operated stores it has opened in Japan over the last
year.
Dominos will continue to face demanding Covid assisted sales
comparisons across its various geographies for the rest of its
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
2022 year. It will also have to contend with inflation pressures.
We continue to regard Domino’s long-term prospects as
attractive. Its store count is targeted to double over the coming
decade, and it benefits from the structural shift to online ordering
and meal delivery.
Portfolio Changes
We did not make material changes to our target weights for
companies in February. As we did in January, given the share
price performance dispersion across the portfolio, we trimmed
our financials and added to some of our high quality, growing
businesses whose share prices have fallen a long way.
We topped up our positions in the likes of Domino’s, Nanosonics,
SEEK, REA and Carsales.
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The Barramundi portfolio also holds cash.
INFORMATION
TECHNOLOGY

FEBRUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
COCHLEAR
+16
%
FINEOS
-13
%
XERO
-17
%
DOMINO’S
-24%
NANOSONICS
- 18
%
5 LARGEST PORTFOLIO POSITIONS as at 28 February 2022
CARSALES.COM
6
%
CSL LIMITED
9
%
WISETECH
6
%
SEEK
5
%
CBA
5
%
The remaining portfolio is made up of another 22 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
Share PriceTotal Shareholder Return
$
0.00
$
0.50
$
1.00
$
1.50
$
2.00
$
2.50
$
3.00
$
3.50
Oct
2017
Oct
2018
Oct
2019
Oct
2020
Oct
2021
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+4.9%(11.6%)(4.4%)+26.1%+17.8%
Adjusted NAV Return(2.9%)(10.8%)+6.7%+15.7%+13.4%
Portfolio Performance
Gross Performance Return(2.8%)(11.0%)+8.4%+18.6%+16.5%
Benchmark Index^+2.1%(0.8%)+10.7%+9.0%+8.9%
PERFORMANCE to 28 February 2022
^Benchmark Index: S&P/ASX 200 Index (hedged 70% to NZD)
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, after expenses, fees and tax,
»adjusted NAV return – the return to an investor after expenses, fees and tax,
»gross performance return – the Manager’s portfolio performance in terms of stock selection and currency hedging before expenses, fees and tax, and
»total shareholder return – the return combines the share price performance, the warrant price performance, the net value of converting any warrants into shares, and the dividends paid to shareholders. It assumes
all dividends are reinvested in the company’s dividend reinvestment plan, and that shareholders exercise their warrants, (if they were in the money), at warrant expiry date
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 https://barramundi.co.nz/about-barramundi/barramundi-policies
3
TOTAL SHAREHOLDER RETURN to 28 February 2022

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 a 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
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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 20 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 its shares on market
»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
MANAGEMENT
The Manager has authority delegated
to it from the Board to invest according
to the Management Agreement and
other written policies. Barramundi’s
portfolio is managed by Fisher Funds
Management Limited. Robbie Urquhart
(Senior Portfolio Manager), Terry Tolich
and Delano Gallagher (Senior Investment
Analysts) 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 Board of Barramundi
comprises independent
directors Alistair Ryan (Chair),
Carol Campbell, Andy Coupe
and David McClatchy.
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 Barramundi warrants on issue