BRM - monthly update - 30 April 25 NAV discount correction

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for April was +2.3% and the
adjusted NAV return was +2.2%. This compares to the S&P/ASX200 Index
(70% hedged into NZ$) which was +2.9% over the month.
Market Backdrop
Despite the US tariff related uncertainty, the Australian share market’s
performance was broad based with 10 of the 11 sectors delivering
positive returns in the month. Communication Services (+6.5%),
Information Technology (+6.4%) and the Consumer Discretionary
(+6.0%) sectors performed the best.
An expectation of softening global trade and hence demand for energy,
weighed on the Energy sector (-7.7%). Likewise, tariff tension between
China and the US also weighed modestly on the mining heavy Materials
(+0.7%) sector.
Portfolio Commentary
Fineos (+10% in A$) released a solid March quarter cash flow report
to the market, reiterating both its FY25 revenue guidance and that it
would sustainably generate positive free cash flow for FY25 and in the
years following. Encouragingly its business development is bearing fruit.
Fineos has been named the preferred vendor for six new small deals
for its Absence and its Claims products. It is also migrating two further
customers to its Cloud product.
Wisetech (+9%) took further steps in addressing its governance and
succession planning challenges in April with the appointment of a newly
created position of chief of staff and deputy chief innovation officer.
This new role seeks to facilitate more effective delegation of duties and
execution of Wisetech’s product development plan.
Resmed (+5%) delivered another very solid profit result for Q3 FY25.
Revenue increased +9% in constant currency, with good growth across
all products and regions. This underpinned an underlying profit increase
of +11%. The incremental growth in earnings relative to revenue was
driven by a seventh consecutive quarter of gross margin improvement
and ongoing leverage of overheads. The icing on the cake was the
company’s indication that it did not expect the introduction of US tariffs
to have a material impact on its financial results. Resmed’s products have
historically received tariff relief due to their use in treating a chronic
medical condition. In early April the company confirmed with US Customs
that this would remain the case. Moreover, Resmed is close to completing
a major expansion of its US manufacturing capacity that commenced well
before President Trump’s re-election.
The CEO of oOh!media (+3%), Cathy O’Connor, is stepping down in
the second half of 2025 after over four years in the role. In our view Ms
O’Connor did a solid job over a difficult period that included Covid-19,
when out-of-home media audiences were essentially decimated. The
Board has commenced a search process for a replacement. A positive
trading update was provided as part of the announcement. The
company’s media revenue for Q1 of 2025 was up by 16%, matching
the growth reported by the Outdoor Media Association for the total
Australian out-of-home advertising sector. oOh!media expects Q2 growth
to be similar to Q1. It expects to recapture market share over the balance
of 2025 as new contracts that were secured in 2023 and 2024 ramp-up.
Brambles (+2%) provided its normal nine months trading update.
Revenue for FY25 YTD is up by +3% in constant currency (“CC”) driven
by price realisation of +2% and volume growth of +1%. Volume growth
is all due to net new business wins, while like-for-like (“LFL”) volumes
have been flat. The ongoing growth in net wins is encouraging now that
Brambles has the pallets available to enable it to convert whitewood
pallet users to its pooled hire pallet solution. Brambles tightened its FY25
sales guidance range from +4-6% CC to +4-5% CC, reflecting modest
weakness in LFL volumes. Guidance for underlying profit growth of +8-
11% is unchanged, so profit margins appear to be ahead of Brambles’
previous expectations due to tight cost control.
PWR Engineering (+0.3%) announced that the impact of US tariffs
on its business would be immaterial in FY25. PWR has manufacturing
facilities in Australia, the UK and the US. While it currently manufactures
the majority of its inventory for its US division out of Australia, PWR has
expanded its manufacturing and assembly facility in the US. It is applying
for NADCAP accreditation which will allow it to migrate more of its
manufacturing from Australia to the US facility.
Late in the month CEO Kees Weel took temporary leave on medical
grounds. We wish Kees a speedy recovery. Chief Technical and
Commercial Officer, Matthew Bryson, will be the acting CEO. We have
confidence in Matthew Bryson who has been integral to the success of
PWR since joining in 2000.
Domino’s (-1.3%) announced a couple of changes in its Global
leadership team. Europe CEO Andre ten Wolde has accepted a new
position as Group Chief Marketing Officer and Julianne Dickson,
previously Group Chief Portfolio Management Officer, has accepted
a new position as Group Chief Transformation Officer. No comment
was made on current trading conditions, so we infer that the company
is comfortable with current consensus forecasts for an essentially flat
earnings outturn for FY25.
Ansell (-10.5%) clarified its position with respect to proposed US tariffs.
The company derives around 43% of its revenue from the US. Most of
the products it sells in the US are sourced from its own manufacturing
facilities or third-party suppliers located in Malaysia and Sri Lanka.
The proposed tariff rates for these two countries are 24% and 44%,
respectively. While these are high rates, Ansell’s major competitors are
also located in these regions, so they face similar potential headwinds,
and Chinese producers face even higher tariffs. There is negligible glove
or body protection manufacturing capacity in the US, so local production
cannot substitute for imports. Against this backdrop, Ansell plans to fully
offset tariff increases through pricing. The market seems sceptical given
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
May 2025
$
0.66
SHARE PRICE
DISCOUNT
1
0
.7
%

a
s at 30 April 2025
BRM NAV
$
0.66

SECTOR SPLIT
as at 30 April 2025
KEY DETAILS
as at 30 April 2025
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
$0.69
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
338m
MARKET CAPITALISATION
$223m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
18
%
19
%

INDUSTRIALS
17
%
COMMUNICATION
SERVICES
23
%

FINANCIALS
9
%
the company’s share price reaction. We are a little more positive as Ansell
has historically demonstrated its ability to recover higher input costs via
(modest) price rises in FY22, FY23 and H2 FY25 and the use of PPE is
largely non-discretionary. Ansell reiterated guidance for FY25 EPS growth
of +12-28%.
Portfolio Changes
We used the market volatility to add Pinnacle Investment
Management (+23% since adding it) to our portfolio. Pinnacle provides
boutique investment managers with best-in-class global institutional and
retail distribution, middle office and infrastructure services, and seed
funding. By handling the marketing and administrative functions, Pinnacle
allows the investment managers to focus on investing. Pinnacle typically
takes a 25%-49% equity share in the investment managers (“Affiliates”).
This ensures Pinnacle and the Affiliates are fully aligned. Pinnacle charge
a fee for providing the marketing and administrative services. These fees
more or less cover the costs of these services. The majority of Pinnacle’s
earnings come from its share of management fees and performance fees
earned by the Affiliates.
Pinnacle is led by founder-CEO Ian Macoun. He is supported by a strong,
long tenured management team. Pinnacle has a long track record of
helping its affiliates grow their businesses. Growth in funds under
management across Pinnacle’s network has been predominately organic
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
(20%+ annualised since 2008) in the form of strong investment returns,
inflows and supporting new affiliates with seed funding and expertise to
grow. Some of these new managers now manage $10b+ of funds under
management.
Pinnacle’s affiliates have diverse strategies, styles, asset classes and
geographic exposure with opportunities to grow their asset base and
profits in the long term.
We exited James Hardie (-8.5%) during April. In late March the company
announced the acquisition of a large US building products company that
is a leader in composite (including recycled PVC) decking for homes.
Although the business is complementary, this has been poorly received by
the market. James Hardie management is deemed to be paying too much
and has structured the deal in a way that looks to destroy value for James
Hardie shareholders. Management have also deprived shareholders of the
right to vote on the transaction. We have lost faith that the James Hardie
Board and management team will act in shareholders’ best interest and
so have sold our position.
2
10
%
CONSUMER
DISCRETIONARY

HEALTH CARE

CASH &
DERIVATIVES
INFORMATION
TECHNOLOGY

APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in Australian dollar terms
PINNACLE
+23
%
REA GROUP
+13
%
COMMONWEALTH
BANK
+10
%
ANSELL
-10
%
FINEOS
+10
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2025
WISETECH
6
%
CSL LIMITED
8
%
SEEK
6
%
AUB GROUP
6
%
XERO
5
%
The remaining portfolio is made up of another 20 stocks and cash.
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.0%(4.9%)+1.8%(1.4%)+12.0%
Adjusted NAV Return+2.2%(10.9%)(2.7%)+5.5%+11.6%
Portfolio Performance
Gross Performance Return+2.3%(10.8%)(1.0%)+7.8%+14.1%
Benchmark Index^+2.9%(4.4%)+9.4%+7.5%+12.7%
PERFORMANCE to 30 April 2025
3
TOTAL SHAREHOLDER RETURN to 30 April 2025
^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