BRM – November 2024 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for October was down
-0.7% and the Adjusted NAV return was down -0.9%. This
compares to the S&P/ASX200 Index (70% hedged into NZ$)
which was down -0.9% over the month.
October proved to be a modestly softer month for Australian
equities, with eight of the eleven market sectors falling in
the month. Financials (+3.3%), Healthcare (+0.9%) and
Communication Services (+0.8%) rose modestly. Favourable
economic data including stronger credit growth, better
inflation data (lower than the market expected) and stable
interest rates assisted the performance of the banks and the
financials sector. Utilities (-7.2%), Consumer Staples (-7.0%)
and Materials (-5.2%) weighed the most on the ASX200
Index’s return.
Portfolio News
REA (+13%) rallied in the month after it abandoned its
attempts to acquire Rightmove, the leading UK-based online
property portal. REA’s Australian business continues to
perform strongly, supported by high listing volumes which
were up +7% for the September quarter.
Credit Corp (+12%) held its AGM late in the month. The
company reiterated its guidance for after tax profit growth
of +11-23% for FY25. There were a number of encouraging
signals on trading for the year to date. Consumer Lending
volumes remain solid, further Australian and NZ debt ledger
purchases have been locked in and US debt ledger collection
productivity has continued to improve.
Resmed (+6%) reported earnings for Q1 FY25 that showed
very solid growth on the prior year, and which were ahead of
expectations. Revenue grew by +11% in constant currency
terms, with over 10% rises being recorded across all of
devices, masks and residential care software. The company’s
underlying gross profit increased +18% reflecting both the
lift in revenue and further expansion in its gross margin.
Operating cost growth lagged revenue growth, so the net
result was after tax earnings were up by +35% versus a
year ago. All-in-all, Resmed’s Q1 performance was beyond
reproach and the business looks to have good momentum for
the balance of the year.
After a strong few months Ansell’s share price fell modestly
(-2%). This despite lifting the bottom end of its FY25 earnings
guidance range at its AGM trading update. However it left
the top end unchanged. Underlying FY25 earnings growth
is now forecast at +32-47% compared to FY24. Boosted by
earnings from an acquisition. Earnings per share growth for
the year is expected to be +4-20% after allowing for the
new equity raised to fund the acquisition. Q1 FY25 trading
was described as providing a “strong” start to the year. End
market conditions are broadly in line with the company’s
expectations. The acquisition is performing modestly ahead of
targets, and delivery of projected cost savings for the year is
on track.
Brambles (-4%) delivered its Q1 FY25 trading update.
Revenue for the quarter was up by +3% in constant currency
(“CC”) terms. This run rate is below the company’s FY25
revenue guidance but all guidance targets (rev +4-6% CC,
EBIT +8-11% CC) have been reaffirmed. Overall, Brambles
has indicated that Q1 performance was “broadly in line with
expectations”. The increase in Q1 revenue was driven by a
3% increase in price. Volume for the quarter was flat with
like-for-like volume down -1% and net wins up +1%. The
like-for-like performance reflects the soft macro environment.
The positive outturn in net wins is mildly encouraging, and we
hope to see this strengthen over the balance of the year as
Brambles now has the pallets available to enable it to chase
new business.
Audinate’s (-4%) share price subsided further following a
soft trading update. The company flagged that its customers
still hold a lot of inventory of Audinate audio chips. This
continues to weigh on customer order backlogs. This implies
that the rebound in revenues is taking longer than initially
expected for Audinate and has led analysts to downgrade
near-term earnings expectations.
Woolworths (-10%) provided a disappointing 1Q25 update.
While comparable sales growth in its core Australian Food
division of +2.3% was in line with market expectations,
operating pre-tax profit guidance for 1H25 was circa 9%
below market expectations. Management attributed this to a
higher proportion of sales coming from online sales. Online
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
November 2024
$
0.68
SHARE PRICE
as at 31 October 2024
DISCOUNT
1
11.0
%

BRM NAV
$
0.76

SECTOR SPLIT
as at 31 October 2024
KEY DETAILS
as at 31 October 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
334m
MARKET CAPITALISATION
$227m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
18
%
19
%

INDUSTRIALS
15
%
COMMUNICATION
SERVICES
23
%
2
%
3
%

FINANCIALS
CONSUMER
STAPLES
MATERIALS
8
%
sales increased +24% during the quarter and grew to 15%
of Australia Food sales (from 13% a year ago). Online sales,
while profitable, is lower margin than bricks and mortar sales.
In addition, the political and media scrutiny on supermarket
pricing has seen Woolworths, and its competitor Coles,
reduce shelf prices. There were some green shoots in the NZ
business, where comparable sales increased +3.4%. Stores
rebranded from Countdown to Woolworths New Zealand are
outperforming the network, with another 10 rebranded in the
quarter.
Wisetech’s (-14%) share price was buffeted by the decision
by CEO and founder Richard White to step down as CEO
of the company. This followed a period of negative press
headlines related to his personal life by the Australian press.
This scrutiny crossed over into the company domain, and
ultimately culminated in the decision by Richard White (with
the agreement of the Board of Directors). The share price,
which had fallen a lot more than 14% in the wake of the
publicity, rebounded sharply on the news. The market reacted
favourably to the fact that Richard White will continue with
the company and be involved in product development. He
is the visionary of the business and driving force of its great
success over the years.
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
James Hardie (JHX) (-15%) has released no material
information of its own in the month, but it has been impacted
by negative house builder sentiment in its core US market.
Uncertainty from interest rate volatility and the US election
has weighed on the results of some large US builders. They
have referenced a softer September Quarter for earnings
and have also adopted a more cautious stance when looking
out to the rest of the FY25 year. JHX reports its September
Quarter result in November, and we will be meeting with
management to talk through the various themes and issues
influencing its near-term earnings. Longer term, we think its
outlook remains bright.
Portfolio Changes
We reduced our weighting in Wisetech following the
management changes during the month.
2
8
%
CONSUMER
DISCRETIONARY
INFORMATION
TECHNOLOGY

HEALTH CARE

CASH &
DERIVATIVES

OCTOBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
REA GROUP
+13
%
CREDIT CORP
+12
%
WOOLWORTHS
-10
%
JAMES HARDIE
-15
%
WISTECH
-14
%
5 LARGEST PORTFOLIO POSITIONS as at 31 October 2024
WISETECH
8
%
CSL LIMITED
10
%
SEEK
6
%
AUB GROUP
5
%
MACQUARIE GROUP
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+2.3%(4.8%)+8.5%(2.1%)+11.2%
Adjusted NAV Return(0.9%)+2.0%+29.7%+5.7%+11.6%
Portfolio Performance
Gross Performance Return(0.7%)+2.7%+33.0%+7.8%+14.3%
Benchmark Index^(0.9%)+2.3%+26.2%+9.2%+8.9%
PERFORMANCE to 31 October 2024
3
TOTAL SHAREHOLDER RETURN to 31 October 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