BRM – December 2024 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for November was
+5.1% and the Adjusted NAV return was +4.8%. This
compares to the S&P/ASX200 Index (70% hedged into NZ$)
which was up +3.8% over the month.
Equity markets were buoyed by the US election result, which
was seen as business friendly and positive particularly for US
equities. Nine out of eleven index sectors delivered positive
returns. Information technology (+10% in A$) led the pack.
The Utilities (+9%), Consumer Discretionary (+7%) and
Financials (+6%) sectors also performed well. Geopolitical
concerns related to the Trump election victory (prospect of
increased tariffs), weighed on the Materials sector (-3%), the
worst performing sector on the ASX200.
Fineos (+45% in A$) hosted an investor day at which
management outlined clearly how, after years of
development, Fineos is well positioned to grow its share of
the Life, Accident and Health (“LA&H”) software market. It
has two of the top ten North American LA&H insurers using
its comprehensive product suite. It has a further six of the top
ten LA&H insurers using one or more Fineos modules. Fineos
is seeing strong interest across customers to increase their use
of its software. This bodes well for earnings growth in the
future.
Xero’s (+16%) 1H25 result included revenue growth of
25% vs 1H24. Its key measure of pre-tax profitability grew
52%, and free cash flow virtually doubled to over $200m. All
geographic regions delivered strong revenue growth helped
by a combination of price increases and new subscriber
additions. We have seen a sharp increase in product
development since Sukhinder Sing-Cassidy became CEO. This
also contributed to this strong financial result. Encouragingly,
Xero is making in-roads into the US market, which, should it
continue, bodes well for profit growth potential. The strong
profit growth was also testament to disciplined cost control,
and this also helped lift the growth in free cash flow in the
1H25.
James Hardie (+15%) delivered a better-than-expected
trading update for the September quarter, driven by strong
execution by management. In a soft environment for US
housing construction, JHX US volumes fell 7%, outperforming
the overall market, and was offset by higher pricing, driving
a 29% operating profit margin – towards the top end of
their guidance. Cost control and a strong result from their
Australian business resulted in after tax profit exceeding
their guidance and market estimates. This result reflects
the resilience of James Hardie’s scale and business model.
It remains well placed to grow profits strongly once the
economic environment picks up.
Wisetech (+8%) had a volatile month. It continued its
rebound as leadership uncertainty reduced with the CEO,
Richard White, stepping down as CEO but remaining with
the company. He will help drive product development and
will report directly to the Board. CFO Andrew Cartledge
has taken up the reins as interim CEO until a permanent
successor is found. This good news was offset by Wisetech’s
downgrade of its FY25 earnings guidance because of a
delay in the launch of a new software product. After falling
sharply initially, the share price recouped the majority of those
losses as the market became comfortable that this represents
a ‘delay’ rather than a permanent ‘loss’ of the expected
revenues from the product launch.
Domino’s (-3%) announced the retirement of long-serving
CEO, Don Meij the day before its AGM in early November.
Mr Meij has been replaced by Mark van Dyck, whose last
role was as Regional MD, Asia Pacific, for Compass Group,
a large UK-based food service provider (market cap £45.6b).
Mr van Dyck was responsible for Compass’ operations across
11 Asia-Pac countries. Australia, NZ and Asia account for
circa 75% of Domino’s network sales. For the last 12 months
Mr van Dyck has been an advisor to the Domino’s Board but
his appointment as CEO follows a global search. Our early
exposure to Mr van Dyck suggests an initial focus on restoring
Domino’s profitability and its partnership with franchisees, so
we expect store rollout may be limited while this is pursued.
Dominos also provided a sales update for the first 17 weeks
of FY25. Group same store sales (“SSS”) for this period were
down by -1.2%, only marginally better than the -1.3% of the
first seven weeks. Given a soft comparable (-1.5%) for the
last 9 weeks of H1 FY24, we are hopeful that Domino’s will
end the current half with improving SSS momentum.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
December 2024
$
0.71
SHARE PRICE
as at 30 November 2024
DISCOUNT
1
11.3
%

BRM NAV
$
0.80

SECTOR SPLIT
as at 30 November 2024
KEY DETAILS
as at 30 November 2024
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
$0.72
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
333m
MARKET CAPITALISATION
$237m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
19
%
19
%

INDUSTRIALS
16
%
COMMUNICATION
SERVICES
22
%
1
%
3
%

FINANCIALS
CONSUMER
STAPLES
MATERIALS
7
%
PWR Engineering (-5%) provided a trading update which
was below the market’s expectations. Two electric vehicle
(“EV”) contracts were cancelled, and one was delayed as
part of the broader global slowdown in the EV market.
These contracts were short dated (circa 18 months) and
do not impact the long-term health of the business. PWR
maintained guidance for high-single-digit revenue growth
for the motorsport division for FY25. PWR also has a strong
Aerospace pipeline which should sustain strong revenue
growth for several years.
New addition to the portfolio: MAAS Group
During the month we added MAAS Group (+5%) to the
Barramundi portfolio. MAAS is a founder-led diversified
industrial business. It operates four distinct business units,
construction materials (the crown jewel and 40%+ of Group
earnings), civil construction and hire, residential property
and commercial property. It operates 40+ quarries and 20+
concrete plants, and supplies aggregate (used in construction
of buildings, roads, dams etc) and concrete to the building
industry predominantly in regional New South Wales (“NSW”)
and Melbourne. Its quarries (and concrete plants) are
strategically located in areas with large construction works
(civil, residential and commercial). This will support earnings
growth for years.
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
We think the location and long life of the quarries provides
MAAS with a reasonable ‘moat’ and a sustainable competitive
advantage. Because of the high cost to transport (heavy)
aggregates and the low price-to-weight ratio of aggregates,
the close proximity of MAAS’ quarries to large civil, residential
and commercial construction means MAAS is the lowest cost
provider in many regions. It is also not easy obtaining permits
to build new or to expand existing quarries, which is why
MAAS’ quarries are very valuable.
MAAS is led by a well-regarded and experienced management
team, and have deep knowledge of the regional markets that
MAAS plays in. There is shareholder alignment across the
business with 80+ of the team on the long-term incentive
scheme and through that own shares in MAAS. CEO Wes
Maas owns 50% of the equity. The MAAS team genuinely
think like owners and run the company in order to maximise
long term shareholder value.
2
9
%
CONSUMER
DISCRETIONARY
INFORMATION
TECHNOLOGY

HEALTH CARE

CASH &
DERIVATIVES

NOVEMBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
FINEOS CORP
+45
%
XERO
+16
%
JAMES HARDIE
+15
%
REA GROUP
+11
%
CBA
+11
%
5 LARGEST PORTFOLIO POSITIONS as at 30 November 2024
WISETECH
7
%
CSL LIMITED
10
%
SEEK
6
%
AUB GROUP
5
%
MACQUARIE GROUP
5
%
The remaining portfolio is made up of another 21 stocks and cash.
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+4.4%+0.9%+19.5%(2.0%)+10.3%
Adjusted NAV Return+4.8%+6.8%+26.3%+7.6%+12.0%
Portfolio Performance
Gross Performance Return+5.1%+7.6%+29.4%+9.8%+14.5%
Benchmark Index^+3.8%+6.1%+25.2%+10.8%+9.1%
PERFORMANCE to 30 November 2024
3
TOTAL SHAREHOLDER RETURN to 30 November 2024
^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 barramundi.co.nz/about-barramundi/barramundi-policies.
Share Price/Total Shareholder Return
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Oct
2006
Oct
2007
Oct
2011
Oct
2013
Oct
2014
Oct
2015
Oct
2008
Oct
2009
Oct
2010
Oct
2016
Oct
2020
Oct
2012
Oct
2022
Share Price Total Shareholder Return
Oct
2017
Oct
2018
Oct
2019
Oct
2021
Oct
2023
Oct
2024

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
Email: enquire@barramundi.co.nz | www.barramundi.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777
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
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.
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 utilised
for the dividend reinvestment plan
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