BRM – June 2022 monthly update

1
A WORD FROM THE MANAGER
In May, Barramundi’s gross performance return was down (5.8%)
and the adjusted NAV return was also down (5.8%). This compares
to the S&P/ASX200 Index (70% hedged into NZ$) which was down
(2.4%).
May saw a continuation of the share market volatility seen in
previous months as inflation and rising interest rate concerns and
global supply chain disruption continue to weigh on financial
markets.
In Australia, the Materials (+0.1% for the month), Utilities (-0.2%),
Industrials (-0.5%) and Energy (-0.7%) sectors led the market
higher. Real Estate (-8.9%), Information Technology (-8.7%) and
Consumer Staples (-6.7%) lagged the benchmark return.
Portfolio News
Audinate has had a tough start to the calendar year, with
investors concerned about its ability to source sufficient micro-
chips to supply its customers with its Dante technology audio
products. Pleasingly, after a positive trading update in late April
Audinate’s share price rebounded +8.3% (in A$) during May.
Audinate confirmed in the trading update that it was on track to
meet market expectations for FY22. It also noted that the chip
shortages had peaked in January and February, and it had secured
sufficient chips to meets its order backlogs which remain at record
levels.
Resmed rose +0.4% in May. There was no notable company
specific news over the month. However, a couple of pieces of
positive scuttlebutt have been circulating. Firstly, Resmed (RMD)
is apparently raising prices which will alleviate inflationary cost
pressures. This has not been publicly confirmed. Secondly, having
had to severely ration the supply of devices to its US distributors
in recent months, allocations from June have reportedly been
significantly increased. This is being facilitated by the rollout of
“card to cloud” CPAP
2
machines. This older technology enables
RMD to sidestep the current constrained supply of communication
chips and makes devices available to the growing backlog of
patients waiting to start CPAP treatment.
In May, Xero (-7.3%) delivered its FY2022 result ahead of
expectations for revenue. This saw analysts lift earnings
expectations for the coming financial year. However, subscriber
growth was more subdued than expected in most regions.
Quality measures remain high with low levels of customer churn
persisting and continuing strong unit economics and growth in
its more mature markets (Australia and NZ). In the UK, growth
recovered after a tough December quarter and is running in
line with company expectations. The UK division has yet to
see a benefit from taxation changes requiring small businesses
to file tax returns digitally. In the US, Xero is still focussed on
developing its accounting product and building out partnerships
with accounting firms before increasing its sales effort. This will
happen in time.
Woolworths (-10.0%) released a strong set of third quarter
results. Australian Food sales grew +5.4%, as Woolworths
passed on industry-wide input cost pressures in the form of
price increases. We saw a similar thematic in the New Zealand
Food business. In the month, we also saw the New Zealand
government announce it will look to follow through with 12 of
the 14 recommendations made by the Commerce Commission
in its market study of the grocery sector done earlier in the year.
There is still a lot that needs to happen before we see these
changes take effect, but if they do, we don’t anticipate the
impact to be material to the Woolworths Group.
Our online classified companies, SEEK (-14.6%), REA (-13.0%)
and Carsales (-4.1%) all fell during the month. This was largely
macro driven with the market concerned about the potential for
economic weakness, possible falling house prices and crimping
of consumer spending, to negatively impact advertising volumes.
SEEK is arguably the most exposed to an economic downturn,
and its share price fell more than the others despite the volume of
job ads on its site reaching record levels for the fourth consecutive
month. As in previous downturns, reflecting the strength of these
companies, we expect that the earnings of these businesses to be
relatively resilient through an economic downturn, should it occur.
At the beginning of May AUB (-18.0%) confirmed it had reached
an agreement to acquire Tysers, a London-based Lloyd’s wholesale
insurance broker. With an upfront purchase price of A$880m
(£500m) plus a potential A$176m (£100m) earnout, this is a
large transaction for AUB. It is equivalent to around 60% of its
prior market capitalisation. The upfront cost is being funded by
a A$350m equity raising, in which we have participated. The
balance is coming from placing A$176m of AUB shares with
the private equity vendor of the business, Odyssey Investment
Partners, and from additional debt. We are comfortable with
the price AUB has paid and with the strategic rationale for the
purchase. AUB’s current senior management team has fully
delivered on its strategic priorities over the last few years but the
size of the acquisition means it does come with execution risk.
1
Share Price Premium to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
2
Continuous positive airway pressure
MONTHLY UPDATE
June 2022
Warrant Price
$
0.03
$
0.90
Share Price
PREMIUM
1
29.0
%

as at 31 May 2022
BRM NAV
$
0.70

SECTOR SPLIT
as at 31 May 2022
KEY DETAILS
as at 31 May 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
$0.78
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
267m
MARKET CAPITALISATION
$240m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
18
%
25
%

INDUSTRIALS
18
%
COMMUNICATION
SERVICES

HEALTH CARE
25
%
3
%

FINANCIALS
CONSUMER
STAPLES
5
%
At this stage, the market seems more focused on this rather
than the upside that Tysers brings to AUB. When combined with
indigestion from the equity raising, this weighed on the share
price over the last month.
Fineos (-21.4%) fell sharply in the month despite releasing a
trading update re-affirming FY22 earnings guidance. As a fast-
growing tech company, Fineos’ share price has been impacted
by the drop in technology shares globally. In addition, as a
smaller technology company with less liquidity in its daily share
trading volume, its share price moves can be amplified if large
investors change their shareholding. In May, there were a few
meaningful changes to its shareholder register and we suspect
this exacerbated its share price volatility in the month. We note
the CEO bought a further $1m of shares during the month which
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
we view favourably. We do not think Fineos’ share price move
during the month is reflective of a deterioration in its long-term
earnings potential.
Portfolio Changes
There were no substantive portfolio changes during the month.
2
The Barramundi portfolio also holds cash.
INFORMATION
TECHNOLOGY
CONSUMER
DISCRETIONARY

MAY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
PWR HOLDINGS
-24
%
FINEOS CORP
HOLDINGS
-21
%
AUB GROUP
-18
%
SEEK
-15%
CREDIT CORP GROUP
- 16
%
5 LARGEST PORTFOLIO POSITIONS as at 31 May 2022
CARSALES.COM
7
%
CSL LIMITED
10
%
WISETECH
6
%
CBA
5
%
AUB GROUP
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+0.8%+9.0%(7.5%)+25.9%+19.7%
Adjusted NAV Return(5.8%)(2.5%)(4.2%)+11.6%+12.4%
Portfolio Performance
Gross Performance Return(5.8%)(2.5%)(3.2%)+14.2%+15.2%
Benchmark Index^(2.4%)+4.2%+6.4%+8.6%+9.5%
PERFORMANCE to 31 May 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 31 May 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
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 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 Andy Coupe (Chair),
Carol Campbell, David
McClatchy and Fiona Oliver.
Warrants
»Barramundi announced a new issue of warrants on
27 April 2022
»Information pertaining to the warrants was mailed/
emailed to shareholders on 4 May 2022
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Barramundi shares held based on the record date of
13 May 2022
»The warrants were allotted to shareholders on
16 May 2022 and listed on the NZX Main Board from
17 May 2022
»The Exercise Price of each warrant is $0.89, adjusted
down for the aggregate amount per Share of any cash
dividends declared on the shares with a record date
during the period commencing on the date of allotment
of the warrants and ending on the last Business Day
before the final Exercise Price is announced by Barramundi
»The Exercise Date for the new warrants is 26 May 2023