BRM – May 2022 monthly update

1
A WORD FROM THE MANAGER
In April, Barramundi’s gross performance return was down (1.4%)
and the adjusted NAV return was down (1.2%). This compares
to the ASX200 Index (70% hedged into NZ$) which was down
(0.4%).
April saw a continuation of the share market volatility seen in
previous months as inflation and rising interest rate concerns and
global supply chain disruption continue to weigh on financial
markets.
In Australia, the Utilities (+9.3% for the month), Industrials
(+3.4%) and Consumer Staples (+3.3%) sectors led the market
higher. In line with the sell-off in global technology shares, the
Information Technology sector (-10.4%) was the worst performing
sector for the month. The Materials (-4.3%) sector was also
weaker. It was weighed down by BHP’s -7.3% share price slide
precipitated by a softer iron ore price, related to Chinese growth
concerns.
Portfolio News
Brambles delivered a positive third quarter trading update that
saw its shares finish April +6.5% higher (in A$). Revenue for
the nine months of FY22 to date was up +7% (8% at constant
FX). Revenue growth is being underpinned by higher pricing
as the company has offset rising costs through renegotiation of
customer contracts as they fall due. Repricing, along with contract
indexation and lumber and transport surcharges, is offsetting
inflationary pressures and has resulted in a further upgrade to
Bramble’s FY22 guidance. The company now expects FY22
revenue growth of 8-9% and EBIT growth of 6-7% (11-12%
excluding US$50m of short-term transformation costs).
Glove maker Ansell’s share price rose +6.0% over April. There
was no notable news flow (positive or negative) on the company
during the month. However, the share price had fallen sharply in
the prior few months and the extent of this fall had perhaps been
overdone. Ansell’s price had fallen in response to a large cut in
FY22 earnings guidance in late January, primarily due to COVID-
related demand for exam/single use gloves waning more rapidly
than expected. The resumption of Ansell’s buyback in early March
is a signal that the company believes its shares were too cheap.
This would have been supportive for the share price performance
as well.
In April Cochlear (+2.8%) agreed to acquire competitor Oticon
Medical from hearing aid manufacturer William Demant. Cochlear
is committed to providing ongoing support to the 75,000+
Oticon Medical hearing implant recipients over their lifetime.
The acquisition will widen Cochlear’s significant global lead over
the competition. The increased scale will likely enable it to lift
its investment in research and development of new products.
William Demant’s exit from the hearing implant market is
validation of Cochlear’s dominance, and the difficulty that Oticon
had, as a sub-scale competitor, in trying to compete with it.
AUB (+2.2%) was speculated to be a potential acquirer of Tysers,
a London-based Lloyd’s wholesale insurance broker in February.
The suggested price tag of close to A$1bn, was large in the
context of AUB’s size (AUB has a market capitalisation of around
A$1,800m). This arguably weighed on AUB’s share price. In early
April AUB confirmed it had been in discussions with Odyssey
Investment Partners, the private equity owner of Tysers. However,
despite believing in the strategic rationale for the potential
transaction, it had not been able to agree acceptable terms. This
resulted in the share price rising +2.2% over the month. In early
May, AUB announced that following further discussions, it had
agreed to acquire Tysers for £600m (A$880m), and has raised
equity in May to help fund this acquisition.
Domino’s share price fell -14.3% in April. It has more than
halved since its mid-September 2021 peak. The market is
primarily concerned about two things. Firstly, the extent to
which relaxation of COVID-related restrictions are a headwind
for the company’s sales which had benefited from increased
pizza delivery during lockdowns. Secondly, the extent to
which the company can offset rising ingredient and labour
costs and staff shortages. These fears were stoked late in the
month when Domino’s US parent reported its first quarter 2022
result. This showed a fall in same store sales and lower profit
margins. Domino’s has been preparing its Australian, European
and Japanese operations for these pressures but it is unlikely to
emerge unscathed. That said, we continue to view the company’s
long-term prospects favourably.
At the end of April Resmed (-10.1%) reported a 12% increase in
revenue (14% at constant FX) and a 2% rise in underlying NPAT
for its March 2022 quarter. This was shy of market expectations,
resulting in its share price falling. The revenue result was solid in
absolute terms. Supply chain disruptions (notably semiconductor
shortages) are frustrating Resmed’s ability to take full advantage
of its main competitor’s absence from the market due to a major,
extended product recall. Resmed has now downgraded the
FY22 sales benefit it expects from Philips’ recall by US$100m, to
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Share Price Premium to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
May 2022
BRM NAV
$
0.75
$
0.90
Share Price
PREMIUM
1
20.5
%

as at 30 April 2022

SECTOR SPLIT
as at 30 April 2022
KEY DETAILS
as at 30 April 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
$0.78
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
267m
MARKET CAPITALISATION
$240m
GEARING
None (maximum permitted 20%
of gross asset value)
5
%
19
%
24
%

INDUSTRIALS
18
%
INFORMATION
TECHNOLOGY

HEALTH CARE
25
%
3
%

FINANCIALS
CONSUMER
STAPLES
5
%
US$200-250m. While this is disappointing, the key impact on
Resmed’s value is not the extra sales it makes while Philips is out
of the market (which are a nice bonus) but how much permanent
market share it has captured. This will only be evident after
Philips returns to the market some time in 2023.
Audinate’s (-8.0%) shares fell in sympathy with share prices
of global high growth, high multiple companies. During the
month it reported that its Q3 FY22 results were ahead of the
market’s expectations. Audinate has navigated the challenging
environment brought about through chip shortages very well.
While shortages are still evident, Audinate indicated that its
inventory levels are better than anticipated and it will continue to
increase inventory levels through the next three months (reducing
its supply chain risk). Its order backlog remains high, and it
continues executing on new product development with its first
video software product released to the market after a successful
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
trial with a key customer. Audinate has also increased pricing
on its products to offset rising cost pressures. This enabled it to
retain its 76% gross margin in Q3. All in all, a solid result in a
trying environment.
Portfolio Changes
There were no substantive portfolio changes during the month.
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The Barramundi portfolio also holds cash.
COMMUNICATION
SERVICES
CONSUMER
DISCRETIONARY

APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
PWR HOLDINGS
+8
%
CREDIT CORP GROUP
-9
%
RESMED
-10
%
DOMINO’S
-14%
WISETECH
- 11
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2022
CARSALES.COM
7
%
CSL LIMITED
10
%
WISETECH
6
%
SEEK
5
%
BRAMBLES
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+2.3%+13.4%(9.1%)+27.1%+19.9%
Adjusted NAV Return(1.2%)+0.5%+1.7%+14.9%+12.9%
Portfolio Performance
Gross Performance Return(1.4%)+0.6%+3.0%+17.6%+15.9%
Benchmark Index^(0.4%)+9.1%+11.2%+10.2%+9.2%
PERFORMANCE to 30 April 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 capital allocation decisions, after expenses, fees and tax,
»adjusted NAV return – the return to an investor after expenses, fees and tax,
»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 30 April 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
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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 Alistair Ryan (Chair),
Carol Campbell, Andy Coupe
and David McClatchy.
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.
However, on 27 April 2022 the Board of Barramundi
announced the issue of a new warrant (BRMWG).
The warrants are scheduled to be issued to eligible
shareholders 16 May 2022