BRM – November 2022 monthly update

1
A WORD FROM THE MANAGER
In October, Barramundi’s gross performance return was up 7.0%
and the adjusted NAV return was up 6.2%. This compares to the
S&P/ASX200 Index (70% hedged into NZ$) which was up 4.8%.
Our portfolio benefitted from robust trading updates and
positive commentary at some portfolio company Annual General
Meetings (AGMs). Along with the share market, Barramundi also
benefitted from the Reserve Bank of Australia’s (RBA) decision to
increase the cash rate by only 0.25% in the month. This was less
than the 0.5% expected by the market. It was taken as a sign
that the RBA may moderate the pace of future interest rate hikes
and thereby reduce the impact of rising interest rates on indebted
households.
Portfolio News
Domino’s share price jumped by 23.7% over October. There
was no company-specific news in the month. In early November,
Domino’s share price fell sharply following a subdued trading
update at its AGM. Same store sales growth is still in negative
territory for FY23 although the company highlighted an
improvement during October. The pace of store openings is tepid
so far this year and will need to accelerate if its target growth
rates of 8-10% pa is to be reached during FY23. All this said, a
number of headwinds facing Domino’s at the moment are short-
term in nature. We continue to like the company’s long-term
growth prospects.
Fineos’s (+20.0%) share price was supported after it reaffirmed
its FY23 revenue growth guidance in the month and announced
the signing of a new customer, New Ireland Assurance Company.
Against the difficult global backdrop for asset managers and
investment banking, Macquarie (+11.0% in A$) delivered a
strong first half earnings result. The benefits of Macquarie’s
diversification over the years, from being a traditional investment
bank into a global investment house spanning infrastructure,
asset management, principal investment and a commodities
trading business was evident. Its commodities trading business in
particular is benefitting from energy price volatility and the rising
demand from its client base for financial products to help them
manage this volatility.
Audinate (+12.6%) remained upbeat in its comments at its
AGM during the month. Audinate reiterated the strong revenue
growth expectations for FY23 that were flagged at its recent full
year results announcement. It has a record backlog of customer
orders to start the FY23 financial year and is continuing to
successfully manage the disruption from microchip shortages
experienced over the last year. Audinate also suggested that the
strong employee cost growth of recent years is likely to moderate
in the future. This suggests the business has reached sufficient
scale to enable it to grow revenue faster than costs over the
coming years, accelerating future profit growth. This was warmly
received by the market.
Led by CBA (+15.4%), our shareholdings in the four major
Australian banks including Westpac (+16.8%), NAB (+12.5%)
and ANZ (+12.1%) all rose strongly in the month. The banks
were buoyed by the RBA’s perceived dovish decision to raise
the cash rate by 0.25%. The banks benefit from the increased
interest rate as it enables them to lift their own lending rates,
improving their earnings potential. At the same time, by
moderating the pace of rate increases, the RBA reduces the
prospect of inducing financial distress amongst households,
which potentially lowers the ‘bad debt risk’ for the bank loan
books. ANZ corroborated this view in announcing its FY2022
results late in the month. ANZ’s profits exceeded market
expectations due to higher revenue (somewhat offset by higher
costs) and lower loan loss charges than expected. ANZ also
mentioned that its net interest margin continues to rise on the
back of higher interest rates which the market liked.
Credit Corp’s share price rose by 7.8% following its AGM
update. Earnings guidance is unchanged but the lower end of
expectations for debt ledger purchases has been raised and is
already in hand. Conditions are subdued in its Australian market.
However, the US outlook for the supply of purchased debt
ledgers looks more encouraging. The Australasian consumer
lending business is also growing strongly, which bodes well for
future profit growth.
Resmed (+0.7%) reported reasonable growth in operating profits
in its Q3 trading update. The result was broadly in line with
consensus forecasts but was not well received. The Americas
market grew strongly, and devices revenue jumped 23%.
However, device sales outside this region fell by 10% in constant
currency terms. This was due to less acceptance of Resmed’s
work-around for microchip shortages. In European markets
health insurance reimbursement can depend on telemonitoring
of devices, which Resmed’s stop-gap card-to-cloud work-around
solution cannot provide. Consequently, European sales fell as
production of Resmed’s normal cloud-connected devices remains
constrained by this shortage of microchips. This shortage will be
resolved in time.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
November 2022
Warrant Price
$
0.01
$
0.71
Share Price
PREMIUM
1
3.7
%

as at 31 October 2022
BRM NAV
$
0.69

SECTOR SPLIT
as at 31 October 2022
KEY DETAILS
as at 31 October 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
$0.74
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
270m
MARKET CAPITALISATION
$192m
GEARING
None (maximum permitted 20%
of gross asset value)
3
%
18
%
20
%

INDUSTRIALS
17
%
COMMUNICATION
SERVICES

HEALTH CARE
26
%
3
%
2
%

FINANCIALS
CASH &
DERIVATIVES
MATERIALS
4
%
CSL (-1.6%) held an investor day during October to shed further
light on its plans for the recently completed acquisition of kidney
therapy company, Vifor Pharma (now CSL Vifor). Through the
acquisition CSL has become the global leader in iron deficiency
therapies, to go with its global leadership in plasma therapies
and influenza vaccines. CSL Vifor estimates there are more than
three billion people living with iron deficiency globally, with only
a fraction of those receiving the treatment that they require. It
will look to grow its patient base within existing geographies and
expand into new geographies, adding to CSL’s revenue growth
prospects. CSL Vifor is also a leader in the treatment of kidney
and other rare diseases. This part of the business is facing some
headwinds caused by the COVID pandemic. Fewer people were
diagnosed with kidney diseases during the pandemic related
lockdowns. The patient base should recover now that lockdowns
have eased, and people become more comfortable returning to
do their doctors for regular health check-ups.
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
Portfolio Changes
There were no substantive changes to the portfolio in the month.
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INFORMATION
TECHNOLOGY
7
%
CONSUMER
DISCRETIONARY
CONSUMER
STAPLES

OCTOBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
DOMINO’S PIZZA
+24
%
FINEOS CORP
HOLDINGS
+20
%
NANOSONICS
+19
%
WESTPAC BANKING
CORP
+17
%
PWR HOLDINGS
+ 19
%
5 LARGEST PORTFOLIO POSITIONS as at 31 October 2022
WISETECH
7
%
CSL LIMITED
9
%
CARSALES.COM
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(0.3%)(13.4%)(18.4%)+13.9%+15.1%
Adjusted NAV Return+6.2%(2.9%)(12.3%)+8.8%+10.4%
Portfolio Performance
Gross Performance Return+7.0%(2.2%)(11.6%)+11.3%+13.2%
Benchmark Index^+4.8%+0.3%(0.3%)+5.4%+7.3%
PERFORMANCE to 31 October 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 dividends (and other capital management initiatives) and after expenses, fees and tax,
»adjusted NAV return – the percentage change in the adjusted NAV,
»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 October 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