BRM – February 2026 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for January was -2.2% and
the adjusted NAV return was -2.3%. This compares to the S&P/
ASX200 Index (70% hedged into NZ$) which was +1.6% over the
month. The primary drivers of this performance differential were the
strong rally in Energy (+11%) and Materials (+9%) shares as a result
of rising commodity prices, and the slide in Information Technology
(-9%) on AI concerns.
Portfolio Commentary
Specialist cooling products manufacturer PWR (+19%) announced it
had secured a US$9m follow-on contract to supply cooling solutions
for a US government project. This followed the successful delivery
of the first stage (US$5.5m) of the multi-year project in 2025. These
contracts demonstrate PWR’s growing reputation as a leader in
advanced cooling technology for multiple end markets in the US.
Recent additions to the portfolio, diversified miners BHP (+11%) and
Rio Tinto (+3%) both benefited from the broad rally in commodities
in the month. Both also provided reasonable Q4 production updates
during the month.
Resmed (+4%) reported its December 2025 quarterly result.
Happily, this largely repeated the pattern of the last couple of years.
Revenue growth was solid (+9% constant currency) and gross
margin continued to improve. The net outcome was a 15% increase
in profit. Two of the market’s big worries for Resmed are fading.
Firstly, there is currently no evidence that GLP-1 weight loss drugs are
damaging CPAP use, and they may indeed be supporting the flow
of new patients on to treatment. Secondly, US regulators confirmed
that Resmed’s products won’t be subject to a fresh round of pricing
structure changes through the Medicare Competitive Bidding
Program.
As alluded to above, after general share price weakness in Q4 2025,
the share prices of our software positions all fell sharply in January.
Fineos (-26%), Xero (-18%) and Wisetech (-15%) continued to
suffer from investor concern that recent advancements in AI could
disrupt their business models and hence pose a threat to their
economic moats. Similar concerns dragged down our online classified
advertising businesses CAR Group (-10%) and SEEK (-9%).
All of these companies are providing investor updates or delivering
financial results in February. As such they were in a news blackout
during January. The latest financial updates in late 2025 that we got
from these companies were positive overall.
The market is not concerned with the fundamental performance
of these businesses – which has been strong. Instead, investors are
concerned with the impact that AI might have on these companies
in 5 years+ hence (for example, could an AI start-up create a better
product than Xero at a lower price?).
Based upon our research and conversations with the management
teams we believe that in each case these companies are continually
improving their products and value proposition to customers –
including investing heavily in AI related capability. They are not
standing still. These companies have large proprietary databases
which helps inform how they develop and deliver products, services
and ultimately value to their clients. Their products are also highly
integrated into the operations of clients and their daily workflow,
which is a significant barrier to switching.
In Xero’s case for example their business customers require a
high degree of accuracy to compile accounts, file tax returns,
and to gain insights into the financial health of their businesses.
Government authorities are not normally understanding if tax
returns are inaccurate. Xero’s investment in AI capability is making
this work far more efficiently for clients, saving them many hours in
completing their accounts and managing payments and cash flows.
The proprietary nature of Xero’s large database restricts third party
AI models from providing the same degree of insight, accuracy and
client trust.
Similar progress was evident at Wisetech’s investor day. Their
heavy investment in technology, including AI, is also benefitting
logistics customers who operate in a global trade environment with
tremendous regulatory complexity (e.g. different customs regulations
for different countries).
The customer costs and risks to switch from Xero or Wisetech’s
products to start-up AI equivalents seems material.
We believe that these software companies remain critical to their
clients, have significant room for continued growth, and see the
current sell-off as a knee-jerk reaction that creates attractive upside
for investors.
We look forward to speaking with each of these companies when
they report in February. It is not easy to predict how long it could
take for the market debate on this issue around AI fears to be
settled. Ultimately, if earnings growth is delivered and investors
continue to see evidence that this growth is sustainable, we think the
share prices will respond accordingly.
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
February 2026
as at 31 January 2026
$
0.64
SHARE PRICE
PREMIUM
1
3.4
%

BRM NAV
$
0.62
$
0.01
WARRANT PRICE

SECTOR SPLIT
as at 31 January 2026
KEY DETAILS
as at 31 January 2026
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
$0.65
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
346m
MARKET CAPITALISATION
$220m
GEARING
None (maximum permitted 20%
of gross asset value)
AUB Group (-2%) agreed to acquire 96% of PIHL Holdings
(“Prestige”), a UK diversified insurance broking and underwriting
agency business. Consistent with AUB Group’s owner-driver
model, the remaining 4% shareholding will remain with Prestige’s
management team. The purchase price is A$432m (£219m), struck
at a multiple that we view as fair for what is a strategic acquisition
in the insurance broking space. Prestige will significantly increase the
scale of AUB’s current UK Retail broking operations. These were part
of the Tysers acquisition (September 2022), subsequently bolstered by
two acquisitions in 2024. Most importantly, Prestige will provide the
management capability and the ownership-platform for AUB Group’s
UK Retail broking business to operate on a properly stand-alone
basis from Tysers’ wholesale broking business. To fund the Prestige
acquisition, and to provide further firepower after $200m of other
acquisition spend over the December half, AUB Group undertook a
A$400m equity raising and increased its debt facility by $200m. We
participated in the equity raising. AUB re-affirmed full year earnings
guidance (excluding Prestige).
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
Portfolio Changes
During the month we exited our Reece (plumbing supplies) position.
It was a good performer for us, returning +12% and outperforming
the ASX200 which returned +5% over the six months holding period.
We had initially established a small position in Reece when its shares
were attractively priced. Since then Reece has continued to struggle
and lose some market share in its key US growth market. It has made
changes to address this challenge, but we would like to see evidence
of improved performance before becoming more constructive on the
company. With the share price having rallied back towards fair value
and with attractive opportunities to re-deploy the capital elsewhere
in our portfolio, we exited our position.
We increased our weighting in CBA (-7%) which has fallen -15%
since its peak in June ’25 and is looking relatively more attractive in a
valuation sense.
2
Financials26%
Information Technology19%
Health Care17%
Communication Services15%
Industrials10%
Materials 7%
Consumer Discretionary 4%
Cash & Derivatives 2%

JANUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in Australian dollar terms
PWR HOLDINGS
+19
%
BHP GROUP
+11
%
WISETECH
-15
%
FINEOS CORP
-26
%
XERO
-18
%
5 LARGEST PORTFOLIO POSITIONS as at 31 January 2026
WISETECH
6
%
CSL
6
%
MACQUARIE
6
%
MAAS GROUP
5
%
BHP GROUP
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(4.9%)(7.0%)(1.8%)+6.3%+0.8%
Adjusted NAV Return(2.3%)(7.8%)(11.8%)+4.2%+4.9%
Portfolio Performance
Gross Performance Return(2.2%)(7.6%)(10.4%)+6.6%+7.0%
Benchmark Index^+1.6%+0.5%+8.4%+10.8%+11.1%
PERFORMANCE to 31 January 2026
3
TOTAL SHAREHOLDER RETURN to 31 January 2026
^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
Oct
2025

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
M A N AGEMENT
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),
David McClatchy, Fiona Oliver
and Dan Coman.
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
»Barramundi announced a new issue of warrants on
30 June 2025
»The warrant term offer document was sent to all
Barramundi shareholders in mid-July 2025
»Warrants were allotted to all eligible Barramundi
shareholders on 7 August 2025
»The new warrants (BRMWI) commenced trading on the
NZX Main Board from 8 August 2025
»The Exercise Price of each warrant is $0.70, 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 Barramundi warrants is
7 August 2026