BRM – June 2025 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for May was +7.0% and
the adjusted NAV return was +6.5%. This compares to the S&P/
ASX200 Index (70% hedged into NZ$) which was +4.1% over
the month.
The Australian share market continued rebounding strongly in
May (alongside global equities) as tariff fears abated. All sectors
of the ASX200 index finished the month with positive returns.
Information Technology (+19.8%) was the best performing
sector helped in part by strong share price performance from
WiseTech and Xero (see below). Energy (+8.6%), Communication
Services (+5.5%) which was buoyed by SEEK’s investor day, and
Real Estate (+5.1%) also delivered strong returns in the month.
Utilities (+0.3%) and Consumer Staples (+1.2%) lagged the index
but still delivered positive returns in the month.
Portfolio Commentary
WiseTech’s (+21% in A$) share price rose strongly in May,
underpinned by receding trade tensions between China and the
US, and the announcement of a US$2.1bn acquisition of US
software business e2open. Tempering this good news, WiseTech
has delayed the roll-out of a new software product. It will finesse
the product further to broaden its functionality and appeal for a
wider range of customers. This is in keeping with the company’s
mantra of ‘slower today, faster forever’. Whilst this may weigh
on the pace of earnings growth in the short-term, we think
WiseTech’s new products will be well received by customers and
will add meaningfully to profit growth in the future. Although
it is still early days, we are encouraged by the acquisition of
e2open. WiseTech seems to have opportunistically acquired the
company at an attractive price. The complementary nature of
its software products broadens WiseTech’s reach across global
logistics participants and has the potential to accelerate its
growth in the future.
Macquarie (+13%) announced a robust full year earnings
result, broadly in-line with the market’s expectation. Its four key
divisions are performing broadly as expected, and pleasingly its
digital retail banking division has continued to take market share
in Australia across both household and business lending. More
consequential was Macquarie’s divestment of a large part of its
global (public markets) asset management business for what
seems to be an attractive price. Macquarie is looking to reinvest
the sales proceeds into higher returning private investment
markets. In doing so, Macquarie’s growth strategy in asset
management is moving closer in direction to that pursued by
global peers such as KKR and Apollo. With ample capital and a
strong balance sheet, Macquarie is well positioned to grow its
earnings over coming years.
SEEK (+14%) hosted its investor day where the focus was on
its product strategy. In 2024 it completed its multi-year, $180m
unification project which folded all its eight jurisdictions onto
one platform. This has allowed it to accelerate the launch of
several new products. It has used Artificial Intelligence (“AI”) to
leverage its unique localised data to improve hirer and candidate
experience, and extend its #1 placement lead across its regions.
The improved platform, new products, and access to unique
local data at scale should help SEEK achieve its double-digit
yield growth targets. Coupled with the cost efficiencies the new
platform brings, management is confident of growing profits
faster than revenue from here. SEEK also explained that it expects
revenue and profits to land at the top end of FY25 guidance.
Xero (+12%) delivered a solid full year financial result, broadly
in line with expectations. Xero continues to grow revenue over
20%, driven by a combination of strong subscriber growth in
key geographies, an improvement in the mix of products being
used by customers (essentially ‘up-sell’) and price increases.
Cost growth remains disciplined, which enabled the company
to meaningfully lift free cash flow to $500m from $340m in the
prior year.
Xero’s management team has a clear strategic focus referred
to as ‘the 3x3’, putting the bulk of their energies into three
geographies (the US, UK and Australia) and across three key
product lines (accounting, payments and payroll). This determines
where they invest in product development and how they allocate
resources more generally in the organisation. The clarity of focus
seems to be bearing fruit for shareholders and sets the company
up well for the future. In particular, we note that management’s
confidence in Xero’s ability to grow materially within the US
continues to grow. Should Xero be successful in this endeavour,
the contribution of the US to overall earnings could be a lot more
meaningful in future years.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
June 2025
$
0.70
SHARE PRICE
as at 31 May 2025
DISCOUNT
1
1.1
%

BRM NAV
$
0.71

SECTOR SPLIT
as at 31 May 2025
KEY DETAILS
as at 31 May 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
$237m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
17
%
20
%

INDUSTRIALS
17
%
COMMUNICATION
SERVICES
21
%

FINANCIALS
10
%
Credit Corp (+1%) provided its traditional nine-month trading
update and reiterated FY25 underlying profit guidance of $90-
100m, +11-23% on FY24. Net lending volumes for its Consumer
Lending business were raised to $60-70m from $45-55m but
this will benefit FY26 earnings rather than the current year.
Consumer Lending profit for FY25 is likely to be around +30%,
reflecting strong growth in the lending book over the last couple
of years. US Debt Buying earnings will be close to +40% from
the combination of improving collection productivity and higher
purchased debt ledger (“PDL”) volumes. Profit from ANZ Debt
Buying will be down by around -15% as the ANZ PDL book has
been in run-off due to a constrained supply of new ledgers. That
said, the ANZ PDL book appears close to a trough, so we would
expect FY25 ANZ Debt Buying earnings to be a sustainable level
for FY26. When combined with the prospect of further growth
in Consumer Lending and US Debt Buying earnings, Credit Corp
looks well placed to deliver satisfactory growth for the year
ahead.
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
Portfolio Changes
After adding Pinnacle in early April 2025, we exited our position
in May (+40% over the holding period). Its valuation became
compelling during peak tariff concerns and we initiated a small
position. However, the opportunity proved fleeting and we
were unable to build a larger position before the share price
rebounded closer to fair value. We chose to exit our position and
redeploy the proceeds in better risk / return opportunities.
2
11
%
CONSUMER
DISCRETIONARY

HEALTH CARE

CASH &
DERIVATIVES
INFORMATION
TECHNOLOGY

MAY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in Australian dollar terms
AUDINATE
+29
%
WISETECH
+21
%
JOHNS LYNG
+15
%
BRAMBLES
+13
%
SEEK
+14
%
5 LARGEST PORTFOLIO POSITIONS as at 31 May 2025
WISETECH
7
%
CSL LIMITED
7
%
SEEK
7
%
BRAMBLES
6
%
XERO
5
%
The remaining portfolio is made up of another 19 stocks and cash.
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+6.1%+2.4%+5.2%+0.3%+10.9%
Adjusted NAV Return+6.5%+1.3%+4.5%+9.9%+11.4%
Portfolio Performance
Gross Performance Return+7.0%+1.8%+6.7%+12.5%+14.0%
Benchmark Index^+4.1%+3.3%+13.4%+9.9%+12.6%
PERFORMANCE to 31 May 2025
3
TOTAL SHAREHOLDER RETURN to 31 May 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