StockTalk

New Warrant Issue for Barramundi

https://www.nzx.com/announcements/419655

The record date for the issue is 25 October 2023 and the warrants are expected to be allotted on 26 October 2023.

Each warrant gives shareholders the right, but not the obligation, to subscribe for one additional ordinary share in Barramundi on the exercise date. The exercise date is 25 October 2024.

The exercise price will be $0.69

Any thoughts?

Welcome to the forum keerti.

I hold a substantial number of Barramundi shares and am very pleased to see another warrant issue, this time on quite advantageous pricing terms.
I expect the final exercise price on 25 October 2024 will be about 63 cents so the warrants will be a very good opportunity for those wanting to gain exposure to what will hopefully be, recovering Australian economic conditions in the year ahead.

I got the initial quote price of the Kingfish warrants when they started wrong by quite some margin so I will resist the temptation to have a guess on the initial trading price of these ones.

Hopefully I will get time to attend the annual meeting this Friday in Ellerslie.  Any one else on here going ?

Yes, I plan to attend the meeting. We should get a good overview of BRM portfolio and the companies likely near future progress.

Were u buying up warrants today basil?..

I tried to buy 200,000 this morning for one cent.  Was a bit of an opportunistic halfhearted attempt and I didn't get any more.  Already have 150,000 free ones issued to me so unless they're really cheap I'm happy with what I have.  I think they're probably worth a bit more than 3 cents they closed at but the markets are very weak and sentiment is very poor so maybe not.

Ha! Yeh I was the same... but in a smaller quantity! Just should of gone at 3 cents to grab some more... it's been a rough week in the markets, sentiment is pretty low...

BRM's purpose is to generate outsized fees for Fisher Funds. Fees as a % of FUM very high - typically average 2% plus. IPO was $1. Where are the clients' yachts?

Quote from: Ricky Bobby on Oct 27, 2023, 10:02 PMHa! Yeh I was the same... but in a smaller quantity! Just should of gone at 3 cents to grab some more... it's been a rough week in the markets, sentiment is pretty low...

Gone from $0.03 to some trading at $0.02 today, last at $0.022.

Patience grasshopper......

Ha! Picked them up today at 2.2... let the games begin

Quote from: Ricky Bobby on Oct 30, 2023, 06:01 PMHa! Picked them up today at 2.2... let the games begin

Congrats, you're up 50% already as of a few minutes ago.  I picked up quite a few yesterday at 2.9 cents and a few more this morning at just over 3 cents.  Good buying at this level in my opinion and gives a lot of inexpensive optionality late into next year in regard to a hoped-for recovery in the NTA of Barramundi in 2024.

I recon I might have got this one right for once!! Should of bought more😅

I got 145K free ones and bought another 105K for a 250K holding.  Another 250K would be nice.

Hey Beagle, what did the warrants get up to last time (the successful warrants, time before last)?..

Dog gone it, I've forgotten.

P.S. "Another 250K would be nice".  Actioned that today.

It's really interesting... the sell side for normal BRM shares is massive and the exact opposite for the warrants. Should I just cash in the warrants now and buy more normal shares at a discount?. Is this how it normally plays out?..

Hey Ricky I don't think there's any "normal" way this plays out.
I've observed the relative depth of the warrants and shares and while that's a bit unusual i think its symptomatic of the current trading environment with investors unsure if the recent recovery in share prices will continue or not.  October was a horrible month of Barramundi with a 7% downwards movement in the NTA, a lot worse than the market and while its somewhat recovered this month there is a pretty heavy tech component to their holdings and what we might be seeing play out is a slight loss of confidence in their strategy, hence a movement towards the optionality the warrants confer.

What we already know is that the shares confer good income (8% PIE is ~ 12% gross for 33% taxpayers) whereas the warrants have the advantage of conferring a lot of optionality on the market through to late October 2024 without putting much money down and hence are a good risk management tool, (a lot of potential upside and the most you can lose is ~ 4.5 cents).

Also worth noting that the exercise price is likely to be only either 63 or 64 cents depending upon the amount of dividends paid during the warrants term.
People need to decide for themselves what they prefer but for what its worth I am now holding twice as many warrants as shares as I like the risk management and optionality attributes of the warrants.
You have to be careful with warrants though, they are hit or miss, they can end up being worthless quite easily and sometimes you win big all depending upon how well Barramundi performs in the next year.  I only ever buy as many warrants as I am very comfortable exercising.
Have we hit the bottom and there's a recovery next year...frankly, who knows for sure...

Thanks Basil, didn't realise the exercise price could come in below $0.69. That's def worth keeping in mind also. Yeh I'm in the same spot with warrants to actual shares..

You're welcome, Ricky.  Yes, the warrant exercise price is adjusted down for the value of the dividends paid during the warrants term. 8% on about 70 cents NTA = 5.6 cents so the exercise price will be adjusted down from 69 cents by either 5 or 6 cents whichever is the closer.

Thanks for that! Has changed my thinking once again...

Current NTA according to my updated spreadsheet which models their portfolio as of just before the ASX opened at noon today was 70.09 cents, (unadjusted for differences in the exchange rate between last week and today).  Shares are available for 68 cents.  It's tempting but I have a LOT of shares and twice as many warrants already.

I have sold my warrants and bought the head shares......I had always intended on adding more head shares so believe the warrants only offer options to gamblers who are unsure what they will do. Right now buying the head shares at 67 cent and collecting the divi payout between now and warrant date means you are currently paying equiv of about 61cps for head shares and I get to keep a couple of grand for my free warrants(which in turn gave me 2700 free head share. Seems to be the best way to play this given if you just hold the warrants you will be paying about 63cps and your warrants are worthless, although you could be receiving interest on the money in the bank(less plenty of tax)whilst you wait to exercise your warrants

Big switch round today. Warrant buyers drying up and regular share buyers building

I made some changes. Head shares were a screaming buy at 63 and 64 cents  ex divvy

Quote from: Basil on Nov 30, 2023, 04:31 PMI made some changes. Head shares were a screaming buy at 63 and 64 cents  ex divvy

yep been adding as well

Haha same, prob should got more...

This interesting ....posted by Percy elsewhere

https://www.livewiremarkets.com/wires/why-the-asx-will-outperform-us-stocks-over-the-next-15-years?utm_medium=email&utm_campaign=Trending%20on%20Livewire%20-%20Tuesday%205%20December%202023&utm_content=Trending%20on%20Livewire%20-%20Tuesday%205%20December%202023+CID_e4111a89a0754d181762c19105762ccc&utm_source=campaign%20monitor&utm_term=FIND%20OUT

Hints BRM will do well if ASX does well ....seeing they are sticking with Credit Corp nothing can go wrong

Interesting, thanks for sharing.  Certainly, many bourses including many in Europe, some in Asia and the U.S have had a great year whereas the ASX has ostensibly gone nowhere for years.  I have a large position in Barramundi shares and warrants already but am tempted to increase it further.   Both represent a very good opportunity for outperformance in 2024 in my view as the shares currently trade at a material discount to NTA. 

Just crunching the yield numbers on this.  Updated my portfolio spreadsheet this morning, (I have a very high confidence level in its accuracy), which is unadjusted for currency movement between Kiwi- Aussie dollars because they are about 70% hedged.  NTA is currently 69.34 cents as at close of market in Australia yesterday. 

At 65 cents, (and there are plenty of offer at that price) that's a 6.3% discount to NTA, (slightly above the 6% level where they can initiate a buy-back of their own shares).  The 8% Tax free PIE yield is therefore boosted because the payout is based on NTA so your yield buying at 65 cents is 8/0.937 = 8.538% tax free.
If you take shares in lieu of dividend at a 3% discount your net yield becomes 8.538 / 0.97 = 8.8% tax free.  For 33% taxpayers that's equal to 8.8 / 0.67 = 13.13% Gross effective yield.

If you manage to get some at 64 cents like I did yesterday and take shares in lieu of dividend like I do, the net yield is 8.935% and gross yield 13.35%.
At 64 cents the discount to NTA is 7.7% so once we are out of the 5 day ex divvy trading period which ends today, at least in theory they are a prime candidate for the company to buy its own shares back, (must be over 6% discount to NTA before they consider this), so there should be support at that level.

Opportunity knocks for outperformance and fantastic yield in 2024?, you be the judge.

Well, I gave you guys a chance for a piece of the action but after the market in Australia opened up and got more than 1% up I couldn't resist any longer as the discount to NTA is even larger than what's detailed above.  I cleaned all remaining shares out at 65 cents and have remained on the bid for more there.  Beagle does not look gift horses in the mouth for very long before jumping on for a ride.  Bought more warrants today too. 

right along side you Beagle, but I bought yesterday, also have a small amount to round up my holdings bid at 65

divi reinvestment 62.5 cps......liken that

QuoteI run such a spreadsheet. My inaccurate estimate for yesterdays close is a NTA of 0.7295

The unavoidable inaccuracy stems from the fact that we only know the weightings of the
components on 30-Sep. Any changes in the portfolio since then are mostly unknown to
us until the 31-Dec quarterly report which we will probably get end of January. So as
a quarter progresses our estimates get more inaccurate. I wonder if the accurate
weightings could be included in the monthly report, as a one-liner (csv).

This from the other channel, well said.
I note from yesterday's official announcement of NTA based on the day before NTA of 71.1 cps (i.e. before the huge surge in the Aussie market yesterday,) the shares are at a multiyear record discount to NTA of 9% (compares to their stated ability to buy-back their own shares at a discount of over 6%, (so we might see some buyback's soon).

I also run a spreadsheet and according to my update last evening the NTA was 72.847 cps.
66 cps, (trading this morning and plenty on the offer last time I looked) represents a whopping 9.5% discount to yesterday's estimated NTA.
Disc Significant holder of the shares and warrants..
Opportunity knocks for 2024 ?

Has anyone looked into the tax efficiency of the BRM structure? I see it is a PIE, what does that mean for dividend imputation?

Quote from: Dolcile on Dec 16, 2023, 09:07 AMHas anyone looked into the tax efficiency of the BRM structure? I see it is a PIE, what does that mean for dividend imputation?

A listed PIE is taxed as a company at 28%. Distributions from a listed PIE are imputed. 

And since the entity holds AU shares I assume they pay tax on the dividends, but lose the benefit of the franking credits? And the gains / losses on the shares aren't taxable or deductible?

Quote from: Basil on Dec 15, 2023, 10:16 AMThis from the other channel, well said.
I note from yesterday's official announcement of NTA based on the day before NTA of 71.1 cps (i.e. before the huge surge in the Aussie market yesterday,) the shares are at a multiyear record discount to NTA of 9% (compares to their stated ability to buy-back their own shares at a discount of over 6%, (so we might see some buyback's soon).

I also run a spreadsheet and according to my update last evening the NTA was 72.847 cps.
66 cps, (trading this morning and plenty on the offer last time I looked) represents a whopping 9.5% discount to yesterday's estimated NTA.
Disc Significant holder of the shares and warrants..
Opportunity knocks for 2024 ?

the way the warrents are trading the market agrees with you.....warrents are trading at 5cps when face value they are worthless

Exercise price of the warrants is likely to be 63 cents.  Lot of optionality with them through to late Oct 2024. Worth all of 5 cents with current nta just over 73 cents. Both the shares and warrants are compelling at current prices in my opinion.

come on basil brush you are the first to say don't be fooled by NTA.......the price is the price which is 67cps, with 3 more divi's attached, as of close yesterday, which means the warrants current underlying value are worthless

Think he meant to say NAV ...not NTA

Herewith a very brief synopsis of my thinking.
Before I outline this, full disclosure I have a lot of shares and warrants, more shares than warrants in a ratio of 9:6

Central to my thinking is that BRM shares sometimes trade at a premium and sometimes at a discount and its impossible to know which way they will be situated at the exercise date of the warrants in late October 2024 so I assume they trade at neither a premium or discount, i.e. at NTA.
I have posted extensively before how their performance after fees has beaten the index over the last 5 years for all three funds so I do not accept a discount is warranted.

I try and model a Bull, bear and base case on how I see the Australian market going over the term of the warrants.  At this point I think central banks will be rushing to cut rates in 2024 and the Aussie market has been flat for years so I am working on the assumption that on a blemded probability case the Australian market will increase at a rate commensurate with the dividend rate at which BRM pay, i.e. 8% per annum.  I'd like to think this is conservative, but we will see.

On that basis, (it could be a lot worse, Bear case, or a lot better, Bull case) I am assuming BRM's NTA in late October will be the same 73 cents it is now after them paying a further 3 dividends, (that 73 cent NTA is off my spreadsheet based on yesterday's close).

Nobody can convince me there's a valid case for the shares to stay at the current 8%+ discount to NTA and there's the 6%+ discount rate at which they can buy their own shares back to keep in mind) so taking into account the four dividends paid 73 x 8% by October 2024  (estimated 5.84 cents which gets rounded to 6 cents) the warrant exercise price will be 63 cents (69 - 6 cents) and with the shares at 73 cents significant value will accrue to the warrant holders.
Of course you can argue the shares are better value at present than the warrants, (no argument from me, see ratio I hold of each above) but on the other hand for only 5 cents you have optionality over the future direction of 73 cents worth of assets.

I'm not going to dive into the whole Black and Shoals option pricing model again...suffice to say the level of optionality these warrants confer, as well as the limited downside risk has value, as the market clearly believes.  Quite an art to pricing Warrants.

Let me just put it in terms like this.  If someone said to you, Snapper, you have the option, not obligation to buy a share in a fund at a fixed future price of 63 cents in late October 2024 and that fund has a current NTA of 73 cents, you think you might be interested in having that option?  Others do and are prepared to pay 5 cents for it.  Figure this for example as one of many possible future outcomes next year.  What if the Aussie market went up 20%, (net 12% after payment of 8% annual yield) between now and then and the NTA was 12% higher then 73+ 12% = 82 cents.  Gosh being able to buy in at only 63 cents would be a tremendous win with NTA at 82 cents.

In conclusion, pricing warrants involves modelling the path you see the shares going over the lifetime of the warrants.  It's all about predicting the future which as we all know, is best guess sort of stuff at the best of times.

Disc: I bought more warrants and shares this week.

 

I struggle to see the attractiveness of BRM shares or warrants. Both share price and NAV are lower than when BRM adopted the 2% per quarter dividend policy in August 2009. Over this 14 year period inflation has 2.4% per annum further lowering the real returns. The very high fee/cost structure in my view does warrant a significant discount to NAV.

thanks Basil.....first of all I want to thank you for your response and for your ongoing sharing of wise knowledge on many threads.
I am not a fan of "what if" and if your what if happened I would be happy to be holding the head share.
In reality the head share looks very attractive at current discount and you are right the head share can trade at a discount or at a premium.
The longer the head share trades at a discount the better it is for the DRIP price, so having collected close to 14000 shares in the last DRIP at a price 0.625 which will have 3 divi's attached before the warrant exercise date, I like banking shares at a discount rather than gamble on the warrants, bird in the hand sought of stuff.
I am a great believer the ASX will outperform the NZX over the medium term (5 years) and have a large holding in RF1 on the ASX as well.....Regal the biggest sharks of them all when it comes to alternative investing 

Mos Its an income stock, no other company outside the Fisher group pays you 2% tax free each quarter, 8% tax free a year ~ 12% gross, ~13% gross if you buy the shares at a 8% discount to NTA and 13.4% gross if you take shares in lieu of divvy at the 3% discount.  You can't beat that on a consistent basis.  In addition, there is significant value unlocked over the years through the regular warrant programs.

Their payout is in the context of an Australian market that been ostensibly flat for many years.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/423381/409435.pdf
Bottom right corner page 3.    NAV return after fees on average in the last 5 years 12.5% v benchmark 9.2%. 

Fair enough Snapper me ol mate and sounds like you have a decent sized shareholding.  I got just over 10,000 shares in the latest DRIP, next one will be more than 20,000 at my current significantly enlarged sized holding so we're on the same page with a significant holding in the shares.  Warrants, I agree are hit or miss instruments....I've made substantial profits on some of the warrant issues before and got flushed down the toilet on other occasions, so I get the whole bird in the hand thing which is why I'm weighted more towards the shares. 

Quote"I am a great believer the ASX will outperform the NZX over the medium term (5 years)

"I couldn't possibly agree more!

Quote from: Mos on Dec 17, 2023, 09:06 AMI struggle to see the attractiveness of BRM shares or warrants. Both share price and NAV are lower than when BRM adopted the 2% per quarter dividend policy in August 2009. Over this 14 year period inflation has 2.4% per annum further lowering the real returns. The very high fee/cost structure in my view does warrant a significant discount to NAV.

BRM was at 60 cps beginning of August 2009, so 10% gain since then plus 8% per annum, plus interest on divi's or extra DRIP added to DRIP shares earned.
One must also calculate the 8% returns have been received on the SP fluctuation value which has average 70cps over the time you refer to, far better to get 8% off a 70cps ave than your initial 60cps @ 8%
I have a mandate to sell these sorts of investments after holding and being patient and the opportunity arises (and it has before and will) for a 12% over all return

11% of their portfolio is CSL.  CSL share price is lower than it was at the start of the year but it has rallied strongly in the last two months from their 5 year low.  Double digit earnings growth and significantly lower capex are forecast.  On top of that is the potential for good news with the CSL 112 phase 3 readout  (https://classic.clinicaltrials.gov/ct2/show/NCT03473223) due in the new year.  I can't see a lot of downside with CSL but it does have the potential for significant gains.  That alone would ignite the BRM NAV.

Speaking of igniting....NTA was announced on Thursday afternoon as at market close of Wednesday this week.  Was just on 71 cents from memory but at market close Friday according to my spreadsheet I set up to track the value of their portfolio was just over 73 cents.  Up 2.8% in the last two days of this week is pretty exciting.  Not quite Turners exciting but I'll take it none the less.  Some idiot gave me a fill at 63 cents for another 100,000 earlier this week...and some people say they don't believe in Santa Clause lol

Quote from: Basil on Dec 17, 2023, 09:51 AMMos Its an income stock, no other company outside the Fisher group pays you 2% tax free each quarter, 8% tax free a year ~ 12% gross, ~13% gross if you buy the shares at a 8% discount to NTA and 13.4% gross if you take shares in lieu of divvy at the 3% discount.  You can't beat that on a consistent basis.  In addition, there is significant value unlocked over the years through the regular warrant programs.

Their payout is in the context of an Australian market that been ostensibly flat for many years.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/423381/409435.pdf
Bottom right corner page 3.    NAV return after fees on average in the last 5 years 12.5% v benchmark 9.2%. 

Fair enough Snapper me ol mate and sounds like you have a decent sized shareholding.  I got just over 10,000 shares in the latest DRIP, next one will be more than 20,000 at my current significantly enlarged sized holding so we're on the same page with a significant holding in the shares.  Warrants, I agree are hit or miss instruments....I've made substantial profits on some of the warrant issues before and got flushed down the toilet on other occasions, so I get the whole bird in the hand thing which is why I'm weighted more towards the shares. 
"I couldn't possibly agree more!

Yes I see the income yield of circa 8% per annum. But the long term decline in NTA and share price  reminds me of the long term performance of another income stock - Kiwi Property. Investors holding since the IPO, or even from when Carmel conjured up the dividend trick in 2009, have not experienced great returns. The manager Fisher Funds however, achieved fantastic fee income. Not for me but good luck to holders. 

Quote from: Basil on Dec 17, 2023, 11:25 AMSpeaking of igniting....NTA was announced on Thursday afternoon as at market close of Wednesday this week.  Was just on 71 cents from memory but at market close Friday according to my spreadsheet I set up to track the value of their portfolio was just over 73 cents.  Up 2.8% in the last two days of this week is pretty exciting.  Not quite Turners exciting but I'll take it none the less.  Some idiot gave me a fill at 63 cents for another 100,000 earlier this week...and some people say they don't believe in Santa Clause lol

nice.....happy with a my 65 cps purchase this week.

Quote from: snapiti on Dec 17, 2023, 10:21 AMBRM was at 60 cps beginning of August 2009, so 10% gain since then plus 8% per annum, plus interest on divi's or extra DRIP added to DRIP shares earned.
One must also calculate the 8% returns have been received on the SP fluctuation value which has average 70cps over the time you refer to, far better to get 8% off a 70cps ave than your initial 60cps @ 8%
I have a mandate to sell these sorts of investments after holding and being patient and the opportunity arises (and it has before and will) for a 12% over all return

Yes BRM was trading at a much deeper discount to NAV back then - 27% discount 30 June 2009 (share price $0.54, NAV $0.74), 16.5% discount 30 September 2009 (share price $0.76, NAV $0.91) according their quarterly reports. I can see the case for investing if the discount is ever that deep as it compensates for the high fee/cost structure.

I note the current share price of $0.67 and NAV of $0.71 is a much smaller discount and NAV is below 30 June 2009 level despite significant inflation since then. I guess the return is all the dividend yield over its long term history. And you could argue 8% less inflation is not terrible.

BRM share price about $1.10 not that long ago

Be good when it gets back to those sort of prices .....just needs a bit of positive sentiment

Quote from: winner (n) on Dec 17, 2023, 12:16 PMBRM share price about $1.10 not that long ago

Be good when it gets back to those sort of prices .....just needs a bit of positive sentiment

Now that would be an impressive result and astonishing premium to NAV of $0.71.

Quote from: Mos on Dec 17, 2023, 12:20 PMNow that would be an impressive result and astonishing premium to NAV of $0.71.

NAV will be over 90 cents .....and large premiums no unheard of with these things

Wisetech and Carsales will have a good year and help increase NAV

Shame they are so keen on holding Xero no water what

Quote from: winner (n) on Dec 17, 2023, 12:32 PMNAV will be over 90 cents .....and large premiums no unheard of with these things

Timeframe?

Quote from: Mos on Dec 17, 2023, 12:52 PMTimeframe?

Next year sometime .....but before warrant date

Quote from: winner (n) on Dec 17, 2023, 12:16 PMBRM share price about $1.10 not that long ago

Be good when it gets back to those sort of prices .....just needs a bit of positive sentiment

I'm calling it early, (you reading this Lounge Lizard?).  The trifecta is HLG, TRA and now BRM. 

Quote from: winner (n) on Dec 17, 2023, 01:06 PMNext year sometime .....but before warrant date

I like your conviction on this Winner but don't share it. How about a friendly wager? If BRM NAV is 90+ cents on 24 Oct 2024 or the share price is $1.10+ on the same date (day before the warrant exercise date), I will buy you a bottle of whiskey up to $100 (or your preferred beverage) and if neither of these thresholds are achieved, you buy me the same?

 

I could hold the whisky bottle and promise not to drink it  ;D

Quote from: Mos on Dec 17, 2023, 01:37 PMI like your conviction on this Winner but don't share it. How about a friendly wager? If BRM NAV is 90+ cents on 24 Oct 2024 or the share price is $1.10+ on the same date (day before the warrant exercise date), I will buy you a bottle of whiskey up to $100 (or your preferred beverage) and if neither of these thresholds are achieved, you buy me the same?

 

Jeez, you not a friendly bookie ....offering evens on a bit of an outsider

And betting per se not encouraged on this site

No worries. Was impressed by your conviction on the outsider!

Quote"I am a great believer the ASX will outperform the NZX over the medium term (5 years) Snapiti

Yes!!
Was digging around in my historical portfolio spreadsheets for some info and came across this from 2.5 years ago in mid 2021 which gave me pause for reflection about our "wonderful N.Z. growth economy". 
Prices end of July 2021.
GNE $3.46
WHS $3.45
ARV $2.10
HGH $2.05
PZL 0.90   (PAZ unlisted market).
OCA $1.54
TRA $4.27
HLG $7.33

Pretty shocking really. A lot of these stocks are MUCH lower today.  Just thought I would share....gives something on an insight into how a random few stocks 2.5 years ago have seriously declined in price.  The only one that's ahead is Turners and not by all that much.
Just as well I made a LOT of portfolio changes since July 2021...in fact Turners is the only one I've kept and added too.
This is why the NZX is so bloody hard work, not helped by having inept idiots in Govt over that time.

Yes BRM NAV declined from 86 cents to 71 cents over that period too. So a similar story albeit with the 8% dividends.

Quote from: Mos on Dec 18, 2023, 09:20 AMYes BRM NAV declined from 86 cents to 71 cents over that period too. So a similar story albeit with the 8% dividends.

So BRM approximately held its value inclusive of those dividends but the vast majority of the stocks I mentioned fell a very long way including dividends e.g. ARV, OCA and WHS ~ halved.  I think a considerably worse story.

BRM gives you a broad exposure to the ASX in a fund that's outperformed the index over the last 5 years by about 3% per annum after fees and tax and it currently trades at just over an 8% discount to NTA.  Almost as importantly, there's no work and analysis required from this old dog so that's more time to enjoy my hobbies in my semi-retirement. That'll do me just fine for a fair chunk of my capital going forward.  The huge divvies put plenty of food in my dog's mouth and diesel in my boat and that's a heck of a lot more than you can say about some of the mutt stocks on the NZX.  My spreadsheet has the NTA at 73.15 cps as at close Friday 15th.

Quote from: Basil on Dec 18, 2023, 09:29 AMSo BRM approximately held its value inclusive of those dividends but the vast majority of the stocks I mentioned fell a very long way including dividends e.g. ARV, OCA and WHS ~ halved.  I think a considerably worse story.

BRM gives you a broad exposure to the ASX in a fund that's outperformed the index over the last 5 years by about 3% per annum after fees and tax and it currently trades at just over an 8% discount to NTA.  Almost as importantly, there's no work and analysis required from this old dog so that's more time to enjoy my hobbies in my semi-retirement. That'll do me just fine for a fair chunk of my capital going forward.  The huge divvies put plenty of food in my dog's mouth and diesel in my boat and that's a heck of a lot more than you can say about some of the mutt stocks on the NZX.  My spreadsheet has the NTA at 73.15 cps as at close Friday 15th.

good point you raise and I totally agree.....I can't believe how much time I spend researching to avoid buying into value traps(those stocks that appear good value but have underlying issues well beyond the value on offer).....certainly happy to pay 1.25% for the pro's to do if they perform.

One thing we can be sure of, Fisher Funds will make out like bandits. The actual average cost of fees/costs is more like over 2%+ of FUM.

Quote from: Basil on Dec 18, 2023, 11:59 AMStarting to come across as envy.  I repeat, they have beaten the benchmark by an average of 3% per annum AFTER fees for the last 5 years. You can't expect better than that.

Certainly not envy. Listed at $1 in October 2006 and currently trading at $0.66 cents 17 years later. Even with the dividends, not too bothered about missing out on this one. Good luck to holders.

Sorry about that Mos. That comment wasn't appropriate. I value your contributions on here so I deleted it.
Horses for courses..in recent years they've done well and I think they earn their fees.

Quote from: Basil on Dec 18, 2023, 01:35 PMSorry about that Mos. That comment wasn't appropriate. I value your contributions on here so I deleted it.
Horses for courses..in recent years they've done well and I think they earn their fees.

No problem. I enjoy you contributions too. I always learn something when there are different perspectives.

Merry Christmas

All good Mos. 

Yeah, they got smashed in the early years from the GFC, (share price was only 35 cents in February 2009), see chart here https://barramundi.co.nz/investor-centre/portfolio-performance/ so when looking at their performance over the years a lot depends upon your starting point.  I wasn't an investor in the early years, thank goodness.
Some of the staff have been better than others over the years.  I like the current lead investment manager Robbie Urquart, formerly from South Africa but I have challenged him before on why he keeps the faith with XRO and will challenge him again at the next Annual meeting.

Possibly worth noting they are on their 8th warrant issue over the years and some of those issues have been lucrative for shareholders and they include the value of that in their total shareholder return.

For me in my early 60's and semi-retired and looking to generate strong dividend income to fund expensive luxury boating and a very hungry large dog, as well as not forgetting of course to keep Mrs Beagle in the comfort she's become accustomed to, its ideal, especially as I look to dial back a bit on the time I spend on share analysis in the years ahead.  I know their fees aren't cheap but they are the only fund manager I know that has a sliding scale so that when they underperform their base fee can slide down to 0.75%.  For me, I like to have someone else making investment decisions for me in Australia and Overseas, (Marlin)...gives me more diversification and more importantly more time to spend doing things I really enjoy like walking my dog and going boating.  I still like the challenge of investment analysis but I'm at my happiest doing those other things.

I hear you Basil on balancing time spent on investment analysis and other activities and I like the sound of prioritising time on boating and walking the dog. I get your approach of achieving international investment exposure through fund managers (especially outside Australasia given the FDR tax regime and associated admin for direct investment). I am off the topic of BRM, so perhaps we can discuss fund managers more on the investing thread in the new year.

Happy to Mos and very open to other idea's regarding fund managers outside Australasia.

Just as an aside and off topic, 2023 has been a bit of a watershed year for me in terms of health.  Posting this as a cautionary tale for others.  I either get VERY regular exercise, (which I absolutely love doing with my dog) and eat healthy or take a bunch of drugs my doctor prescribed, (the side effects on me were very nasty).  One or the other.  It's not a hard choice  :D   With exercise you have to find something you really enjoy doing on a regular basis or it won't happen.

The other thing, if you haven't got your health...your shares and investments aren't much good to you no matter what companies or funds you're invested in.  Lifestyle, health and wellbeing with less stress are vitally important focus area's as you get older in my opinion.  Love boating too...not quite so relaxing with a whole bunch of grandkids on board that need constant entertaining and supervision though lol 

Hi Basil,
Very true. Glad you are proactively prioritising health and wellbeing and definitely something we all should be doing.
Mos

Posted a few thoughts on Barramundi here, post 59  https://stocktalk.co.nz/index.php?topic=105.59

I'm expecting NAV of ~ 74 cents to be announced tomorrow.  A share price equal to NAV is fair value in my opinion.

NTA 74.33 cps. Very nice :)

Coming along nicely, $0.70 hit today!

Bored yesterday so pulled out the numbers on BRM and did the old Z-score analysis ......a measure of whether investment trusts are a buy or sell

BRM is still a BUY

"Goldilocks" economy for Australia in 2024 ?
https://www.theguardian.com/business/2024/jan/03/golden-zone-could-australias-economy-pull-off-an-unlikely-miracle-in-2024?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Wednesday+3+January+2024

Expecting NAV of ~ 76 cents to be announced tomorrow, up nicely on last week.
Expecting warrant exercise price to be 63 cents on 25 October 2023, (9 months hence) 13 cents below the current NAV and the warrants are only 7.4 cents with 9 months of potential capital gain on the NAV still to come.  Hmmm  Whole bunch of them at 8 cents.  Opportunity knocks?

Latest NAV 76.51 cents up ~ 2 cents in the last week. Nice !
73 cents is a ~ 5% discount to NAV.

Hurt BRM NAV a bit

Shareholders have taken a massive bite off the value of Domino's Pizza Enterprises (ASX: DMP) shares as the Brisbane-based fast-food group flagged lower interim earnings for FY24 despite the company's business regaining some momentum.

Domino's shares fell $17.80, or 31 per cent, to a low of $39.50 within the first hour of trading, wiping $1.6 billion from the company's market valuation.

Updated NAV based on closing share prices today inclusive of Domino's fall and all other share price movements = 75.9 cps.
P.S. Latest newsletter here http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/425319/411584.pdf

Dominoes 4% of fund .....bad update and shares plunge 30% odd ...so BRM NAV impacted about 1%

DMP totally oversold ... panic reaction. I hope that they buy heaps more at current price and be much better off in not too distant future

Robbie not adverse to trading opportunities ....from last update added and exited a position in double quick time ...we'll done Robbie.

Share price volatility provided us with the opportunity to add PEXA to the portfolio.
PEXA operates the only e-conveyancing property exchange in Australia. The vast majority of property transactions (sales and mortgage refinancing) are processed through PEXA's platform. PEXA also has a nascent presence in the UK market.

The market was disappointed by the slow pace of expansion in the UK evident in a Q4 trading update which led to a sharp fall in its share price. We bought shares following this fall. To help fund the PEXA purchases we exited our Westpac shareholding.

The investment opportunity in PEXA proved fleeting. The share price rapidly rose circa 20% after we began buying shares, to a level that we felt priced in a strong acceleration in UK growth prospects. We think this earnings growth is likely to be harder won and will take time. Unusually for us, we therefore banked the profits and exited the position after this rebound.

QuoteThis capped a strong year for the portfolio which finished the
2023 calendar year with gross performance up +28.1%, well ahead of
the +13.6% benchmark index return.

Very impressed by this.  In 2023. they outperformed the index by 14.5% !
I'm expecting the ASX to strongly outperform the NZX for the foreseeable future.
Disc: Substantial position in BRM shares and BRMWH warrants.

Quote from: Basil on Jan 29, 2024, 12:16 PMVery impressed by this.  In 2023. they outperformed the index by 14.5% !
I'm expecting the ASX to strongly outperform the NZX for the foreseeable future.
Disc: Substantial position in BRM shares and BRMWH warrants.

And the share price went from 71 cents 72 cents in 2023

Went from 9% premium to 4% discount to NAV

Tough week. A number of one off hits.

Quote from: Toddy on Jan 31, 2024, 03:31 PMTough week. A number of one off hits.

What's happened now?

CCP result was soft.

Quote from: Toddy on Jan 31, 2024, 04:49 PMCCP result was soft.

They fell in love with CCP and took their eye of the ball  ....should have sold when it was 30 bucks

Still in love ......buying more

Good luck to them I reckon

End of month NAV is 76.46 cps according to my spreadsheet up from 76.2 cps this morning.
(Actual NAV announced tomorrow afternoon will be slightly different due to portfolio changes since 31 December and exchange rate movements).
Discount to NAV at last traded price of 72 cents is just on 6%.

That's good given the one off surprises.

Basil

Did todays rally wipe out the mid week losses.

Sure did Toddy and added another ~ half cent to NAV, see post 79 here with latest updated NAV at close of ASX today https://stocktalk.co.nz/index.php?topic=105.75  76.84 cents NAV now, up nearly half a cent on 31 January.

Post 77 might interest some of you in terms of how much I have invested in BRM and the warrants BRMWH and my interest in adding a lot more to my Marlin investment..

Excellent. The ASX market is looking good.

The NZX, well same old.

Basil

I had a read of your previous posts. There is nothing wrong with going hard out investing in a managed fund with exposures outside NZ.
I loaded up with 900,000 warrants at avg 3.6 cents.

I initially bought in for a bit of fun but are becoming a fan as I get a better understanding of their portfolio.

The best part was that the warrants were issued around the bottom of last years sell off so the price was a complete bargain.

Basil

You were very dark about BRM March 2022, (#971) what has changed for you?

Welcome to the forum FatTed and thanks for your question and referencing that post.

For almost all of 2021 and 2022 BRM and Marlin traded on the market at a very substantial premium to the NAV, for example on 31 March 2022 that premium for BRM was 14% and MLN 17%, but at times it was over 20%.  In my view there's simply no point in buying these stocks when they trade at a material premium to NAV because you invest a dollar but, in the examples above, only 86 or 83 cents of that is really working for you. Conversely when I was backing up the truck on BRM and MLN recently I have been buying at up to a 10% discount so for every dollar I was fortunate to invest at that level of discount I have $1.10 working for me going forward.

Tech really didn't work for BRM and MLN in 2022 in a rapidly rising interest rate environment where distant future earnings are discounted back to net present value at ever higher discount rates.  As 2024 and 2025 unfolds we're headed into a lower interest rate environment, and I believe tech and growth companies will perform well.  I also think the Australian economy is well positioned to recover over the next few years, but I am expecting a long slow grind for the N.Z..  America appears well placed for either no economic landing at all or a very soft one at worst. In brief, in 2022, we had economic and interest rate headwinds and with BRM and MLN trading at substantial and unwarranted premiums to NAV, that provided a substantial further headwind to investors short to medium term returns with the unusual premium likely to revert to neutral at some stage, as it subsequently has.

Conversely in 2024 I believe we have interest rate and economic tailwinds and BRM and at times MLN trading at a discount to NAV providing investors with an additional tailwind.  The current BRM warrant issue has extremely attractive pricing dynamics in this tailwind environment and confers some great optionality benefits in terms of the prospects of a strong economic recovery in 2024 with the exercise nearly 9 months away.  I believe the warrants are exceptional buying, but as I already have a boat load, the opportunity is there for those that want to increase their exposure with the additional benefit, they don't have to commit the rest of the funds, (exercise price expected to be 63 cents), until late October 2024.

Additionally, for me personally I am two years older and much closer to retirement and after a major health scare last year I really do want to take life easier in terms of the level of investment analysis I do going forward and take the time to smell the roses so to speak, (for me that's walking my dog and boating)..  Although I am presently fully subscribed to the DRIP plan for all my Kingfish group holdings, (yes, I have a small investment in KFL as well), the 8% tax free income will come in really handy in the years ahead when I need it when fully retired.

Thanks Todd, we're on the same page mate, I have a very similar number of warrants at almost exactly the same average price and a similar number of shares too :D As you imply, they have a very well diversified portfolio of some 26 stocks so I'm perfectly comfortable exercising all my warrants and have funding earmarked to effect that.   If they're all exercised as I am expecting they will be, that would take me up to ~ 50% portfolio allocation but that's on a well-diversified fund, not on a single stock.  Acknowledging 50% will be very high for me but potentially doubling my portfolio allocation through the exercise of BRM warrants is my big option play for 2024.  I don't have to do it but if it's worth my while, as it appears it will be, I am happy to do it.  Done it before too.  Exercised 700,000 of a previous series of warrants.  Made heaps :D

Hi Beagle (et al) I'm interested in your view on KFL. I completely agree with your view that the outlook for the NZ economy is not as good as Oz or the US, however the KFL portfolio is heavily weighted towards stocks that have very significant exposure to international (especially Aus and the US) markets - FPH/MFT & IFT make up almost 50% of the portfolio. The remaining stocks are a mixture of smaller holdings with overseas exposure and "defensive" NZ sticks.

Overall KFL appears to have significant overseas exposure without a huge techstock weighting. To my mind a "retirement" portfolio in which income is important may be better made up of an equal weighting of all 3 of these (KFL/BRM/MLN)? KFLs pricing (including warrants) is also, superficially at least, the most attractive.

Hi Moose, welcome to the forum and thanks for your question which is also a very good one.
You make a very good point and it's an exercise I have just been through for a friend who inherited a very modest sum through a trust.  For him, the $100K he inherited is his only retirement savings and he's likely to live another 20 or so years based on actuary life expectancy data so it was important to get him into something that made a genuine difference to his retirement lifestyle, (yes even $8,000 in annual dividends tax free makes a difference if all you have is superannuation, a few small treats now and again is better than no treats!).

In his case I recommended a 30%,35%,35% split between the three with KFL the lowest.  He only wanted 20% in Kingfish, 50% in Barramundi and 30% in Marlin but as one of the Trustees I overrode that choice in conjunction with the other Trustee because I wanted better diversification, acknowledging there is a risk to investing it all in equities.  He complained a bit, but I made the exact point to him that you've made in your post, that a lot of the KFL portfolio is invested in companies with very strong overseas interests, not forgetting too that in addition to what you've mentioned RYM and SUM, another two of their portfolio stocks are also rapidly expanding into Australia.

For me personally, by and large I am happy to do my own stock picking in N.Z. and my holding in KFL is very small (circa 2%).  KFL warrants appear to be a borderline thing to me.  Exercise price is likely to be $1.26 and the shares are also $1.26.  Clearly, they are a play on how the market performs between now and the exercise date but we're talking about the N.Z. share market here Moose, the same market that struggled to break even last year inclusive of all dividends paid and is still well below where it was 3 years ago and is in fact down nearly 30% in real inflation adjusted terms over the last 3 years. (Let that fact sink in for a minute). I guess you could say we are well and truly overdue for a good year on the NZX!  While it's fair to suggest that, whether it happens is another thing.  6 years of Labour have left us with a deeply divided country with very low growth, (recession on a per capita basis if you exclude spending by new residents) and little prospect for a quick turnaround. 

In summary, you make a very good point but I'm not sure there's a one size fits all, 1/3rd 1/3rd, 1/3rd for the Kingfish group as every investor has different goals and aspirations and most will have an existing portfolio often biased towards N.Z. stocks already.

Quote from: Basil on Feb 03, 2024, 02:55 PMHi Moose, welcome to the forum and thanks for your question which is also a very good one.
You make a very good point and it's an exercise I have just been through for a friend who inherited a very modest sum through a trust.  For him, the $100K he inherited is his only retirement savings and he's likely to live another 20 or so years based on actuary life expectancy data so it was important to get him into something that made a genuine difference to his retirement lifestyle, (yes even $8,000 in annual dividends tax free makes a difference if all you have is superannuation, a few small treats now and again is better than no treats!).

In his case I recommended a 30%,35%,35% split between the three with KFL the lowest.  He only wanted 20% in Kingfish, 50% in Barramundi and 30% in Marlin but as one of the Trustees I overrode that choice in conjunction with the other Trustee because I wanted better diversification, acknowledging there is a risk to investing it all in equities.  He complained a bit, but I made the exact point to him that you've made in your post, that a lot of the KFL portfolio is invested in companies with very strong overseas interests, not forgetting too that in addition to what you've mentioned RYM and SUM, another two of their portfolio stocks are also rapidly expanding into Australia.

For me personally, by and large I am happy to do my own stock picking in N.Z. and my holding in KFL is very small (circa 2%).  KFL warrants appear to be a borderline thing to me.  Exercise price is likely to be $1.26 and the shares are also $1.26.  Clearly, they are a play on how the market performs between now and the exercise date but we're talking about the N.Z. share market here Moose, the same market that struggled to break even last year inclusive of all dividends paid and is still well below where it was 3 years ago and is in fact down nearly 30% in real inflation adjusted terms over the last 3 years. (Let that fact sink in for a minute). I guess you could say we are well and truly overdue for a good year on the NZX!  While it's fair to suggest that, whether it happens is another thing.  6 years of Labour have left us with a deeply divided country with very low growth, (recession on a per capita basis if you exclude spending by new residents) and little prospect for a quick turnaround. 

In summary, you make a very good point but I'm not sure there's a one size fits all, 1/3rd 1/3rd, 1/3rd for the Kingfish group as every investor has different goals and aspirations and most will have an existing portfolio often biased towards N.Z. stocks already.

Excellent Question re splitting between those three - I have done the 1/3 1/3 1/3 split between the three funds, so was interested to see Basils take on that one.
Due to the timing of buying (and deciding on split), my KFL is Well down, Marlin about even, and BRM is up.
I'm also optimistic that my BRM warrants will do well, KFL 50/50. I'm only small scale, so quite like the way these work (more so when the SP is not going down however).

I've gone a slightly different route for 1/3, 1/3, 1/3
I have KFL, and BRM
Instead of marlin I've gone MFF on asx.

https://www.mffcapital.com.au/

It's similar to marlin concept as a LIC but been around longer and I believe it has better quality companies. Good discount to NTA...lower dividend but just sell a few if you need some dosh

Gives me some diversification from kingfish group and NZ dollar and  another way to access global companies from this part of the world.

The KFL portfolio is more difficult to actively manage because of the liquidity issues on the NZX.

For example, if the portfolio managers decided to exit the Pot then the Pot share price would tank. It would also take a long period of time to execute.

Mft,Fph and Ift are the exceptions as they are truly international companyies.

The PIE structure of the funds means all distributions are tax free in shareholders hands.  Other funds like the one Perky mentioned above will have a different tax structure and people need to DYOR as to the implications for them.  The Kingfish group's distribution policy of 2% of NTA tax free is I believe unique and it makes a meaningful difference for a lot of people and is especially attractive for those looking for retirement income. 

Going off the example I provided above for that friend that inherited $100K, no other investment structure would generate him $8,000 per year ~$154 per week tax free in his hands.

People living on National superannuation without any other income apparently constitute about 40% of that demographic.  It can be done if people own their own home but there's very little if anything in the way of money left over for treats.  $154 per week extra gives my friend the opportunity to catch up with his friends for coffee and lunch a couple of times a week and to have a reasonable holiday once a year.  That's a meaningful difference to the happiness in his life, for the rest of his life.  Pretty cool to think as little as $100K can make that sort of difference so he can enjoy a much happier retirement.
Unfortunately, I have much more expensive tastes lol

Agree 100% Toddy.  I often find the NZX extremely frustrating in terms of lack of liquidity.    As for the unlisted market, oh my goodness...the lack of liquidity there is absolutely shocking.

I have a chunk in an unlisted Share. Zespri.

Good dividend stock but no capital gain as  the Zespri revenue model is not tied to the growth of the industry.

That may change in the future if new varieties are issued on a commission basis and not tied to one off license rights.

Does anyone know, if you are on a 39% marginal tax rate, do you have to pay 11% additional tax (39% mins 28%) on the dividends.   Or for tax purposes is this a PIE and therefore final tax.  I.e. no need to include the distribution in your tax return?

Thanks

See the opening line of post #100 above.   It is a final tax. The PIE structure keeps me out of the dreaded 39% tax scalping tax bracket so I am a very happy camper  ;D

Quote from: Basil on Feb 05, 2024, 03:16 PMSee the opening line of post #100 above.   It is a final tax. The PIE structure keeps me out of the dreaded 39% tax scalping tax bracket so I am a very happy camper  ;D

Better not crow about that too much  ....... Government will sort that out to 'catch' us out ...... working on it already?

Count count on Luxon and his Coalition mates

Quote from: Basil on Feb 05, 2024, 03:16 PMSee the opening line of post #100 above.   It is a final tax. The PIE structure keeps me out of the dreaded 39% tax scalping tax bracket so I am a very happy camper  ;D

Thanks

Any idea of the tax treatment of the investments within the entity?   Do shareholders get the benefit of the franking credits on the dividends from the investments.  Or are they lost?

Quote from: Basil on Feb 02, 2024, 09:26 PMSure did Toddy and added another ~ half cent to NAV, see post 79 here with latest updated NAV at close of ASX today https://stocktalk.co.nz/index.php?topic=105.75  76.84 cents NAV now, up nearly half a cent on 31 January.

Post 77 might interest some of you in terms of how much I have invested in BRM and the warrants BRMWH and my interest in adding a lot more to my Marlin investment..

Not going to update every day but seeing as it's a market holiday here tomorrow and the Aust market was down ~ 1% today I did update it for my and others peace of mind.  Updated NAV is now 76.73 cps, down 0.15% when the Au market is down 0.95% today.  Pretty content with that !

In answer to your question Dolcile, there's no investment vehicle whereby N.Z. residents get a credit for Australian franking credits I am aware of.  I just leave them to do their tax thing and know I don't need to include the PIE dividends in my tax return.

76.67 cps NAV according to my spreadsheet just updated, up slightly from last week's 76.38 cps.
Actual NAV announced tomorrow afternoon is likely to be slightly different due to changes to their portfolio since 31 December and the change in currency since last week.

Quote from: Basil on Feb 07, 2024, 06:53 PM76.67 cps NAV according to my spreadsheet just updated, up slightly from last week's 76.38 cps.
Actual NAV announced tomorrow afternoon is likely to be slightly different due to changes to their portfolio since 31 December and the change in currency since last week.

Once warrants are exercised (presuming 100%), then based on latest NAV will drop to about 73 cps.

So about the current price.

Quote from: Sideshow Bob on Feb 08, 2024, 11:24 AMOnce warrants are exercised (presuming 100%), then based on latest NAV will drop to about 73 cps.

So about the current price.

Correct there is some dilution on exercise in late October 2024.
The math's would look like this, assuming all warrants are exercised, remembering its 1 warrant for 4 shares.
(4 x 76.67 + 63) / 5 = 73.94 cps.

P.S. Latest NAV is out.  76.57 cps.  https://www.nzx.com/announcements/425896 one tenth of a cent different to my calculation last evening.

Updated, 76.77 cps.

Aussie market flat but Barramundi portfolio had a very good day up almost 1%, updated NAV at close today 77.45 cps !

Basil, genuine question for you.  If you are looking for exposure to the ASX in general - why not just invest in say the Smartshares S&P/ASX 200 ETF? 

Are you taking the view that you think the active management will return in excess of the ETF, net of the  2% opex/management fee cost in BRM.

Thank you

Good question Dolcile and a fair one and as you know the expense ratio on smart shares ASX200 ETF is a lot lower but its not free, (from memory its 0.30% per annum).

Performance over and above the ASX200, over time after costs is exactly the view I am taking and its supported by the evidence over the medium term.  If you look at their most recent monthly report at the bottom of page 3 you'll see that the 5 year average return NAV to NAV, (so that's after their fees and costs to run the business) is 12.5% per annum whereas the benchmark index is 9.2% per annum.  A 3.3% per annum performance premium after expenses is very impressive.
https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Monthly-Update-December-2023.pdf

Additionally, from time to time as has been the case recently and still is, the opportunity to buy BRM units at a decent discount to NAV presents which is an opportunity to get extra performance over and above the net increase in NAV over time, see the opening paragraph of post #94 above.

Thanks Basil, well made point. 

As someone looking to diversify away from the NZD, I do wonder how much of BRMs out performance is due to the currency hedging, as compared to the unhedged ETF.  Have you looked into that?

Thanks

Actually, I may have misunderstood. 

Does BRM hedge 70% of the currency exposure? In which case the benchmark adjust for hedging makes sense. 

I tried to get a straight answer from their corporate guy on the hedging subject a while back.  Best he could offer is their foreign currency hedging policy varies from time to time but was currently about 50%.  That was a couple of years ago.  I guess if they're benchmarking 70% that implies that's their normal average hedge rate.

As to how much of their outperformance is due to hedging, that's impossible to say as they don't declare that.  For what it's worth I wish they wouldn't hedge.  All hedging costs money, the banks don't provide this service for free and to my mind if you're investing in Barramundi you know you're investing in Australian assets so why not just let that flow and be in Australian dollars too ?  I guess they have some market research somewhere that hedging is what people want.

My view is its highly likely their outperformance is due to stock picking not hedging as the latter is a zero-sum game with the banks charging hefty fees.

I agree. Maybe hedge the dividend cashflows but not the capital or capital gains.

Why. Because the risk is all in the Kiwi dollar. For example, a major event that destroys our dairy sector, or a decent earthquake in Wellington.

Leaving the fund exposed would mean offshore investments would benefit as the kiwi tanked.

Thanks for your thoughts guys.  Its a great question to bring up at the next Annual meeting and one I will undertake to do. Ask what the costs and benefits of hedging are, what profits or losses they've incurred and then maybe put it to the meeting, who wants hedging and who doesn't and ask for a show of hands so the directors get some feedback.   For those that don't know, there's ample free parking and they always put on a pretty decent lunch after the meeting so it's worthwhile attending.    Robbie Urquart, the investment manager is a good guy and there's always a decent queue of people lining up to talk to him so get in quick if you want a chat with him after lunch. 

NZD - tanked ....  hasnt it pretty much alway been tanking ...

We got to 39 cents at one point to the $US prior to that chart.  10 year average to USD is about 64 cents and to the $AU its late 80's cents somewhere. 

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/425987/412334.pdf

Monthly update.  Interestingly, their 5 year CAGR 14.5% compared to the index 10.3%, (NAV to NAV after fees and tax), is now more than 4% above the index, see bottom of page 3.  I think it's more than fair to say they earn their fees.  Good to see a positive performance in January notwithstanding a very strong last quarter in 2023.

Aust market down 0.39% today and not a great day for BRM's biggest holding CSL with their clinical trial result not great but nevertheless BRM NAV closed flat at 77.44 cps compared to 77.45 cps on Friday.  Outstanding how their portfolio has held up and is outperforming the ASX despite a few disappointments with individual stocks in their portfolio lately.

Definitely a roller-coaster ride to end up going sideways.

Fingers crossed that CSL represents a cheaper buying opportunity rather than the stock coming under pressure in a sustained Sell-off.

Results all over the place.
Sek not good, CSL good etc

Will be an interesting day.

Some big movements in share prices today.  Overall, NAV is still just above that which was reported last week, my spreadsheet says 76.65 cps, (last week's official NAV 76.57 cps.)

What's the damage. It feels like hit after hit.

75.6 by my estimate.  More fun when it's going up, that's for sure !  Down about 1 cent since last Wednesday.

https://announcements.nzx.com/detail/426259  75.69...my model seems to be working well but accuracy will vary from time to time depending on portfolio changes and exchange rates.

Current NAV at time of posting is 76.9 cps.  You can put you feet up at the beach now Toddy and have an ice cold Cider...everything is all good.  :D 

Warrants BRMWH look like a really good opportunity to me @ 7.2 cents, (decent number there on offer), with a likely exercise price of only 63 cents in late October 2024 and there being ~ 77 cents NTA.  I'd buy them myself if I didn't already own a million of them.

Unbelievable how the NAV hung in there. And today plenty of green on the board.

Im not one for puting my feet up. I love to surf on the long board I can normally last about 15 minutes sitting on the beach. Just enough time for a drink and something to eat.

I did sell down 50,000 warrants at. 74. I plan on buying them back.

Couldn't resist looking at NAV at the close with all the green on the screen on my BRM watchlist.
ASX up 0.77% today, BRM NAV up 1.89% to 77.1 cps.  I'd call that a very good day.  Time for an ice cold drink.

Oh...before I forget, hoovered up some more warrants at 6.3 cents on the close.  Talk about stealing candy from a baby.  Should just about be locked up for grand theft.

Nav @ ASX close today by my spreadsheet estimate = 77.3 cps.

Nice getting regurly updates, Thanks.

You're welcome.  I'm happy to continue but this week won't be daily as I'm on holiday for a few days.

Quote from: Basil on Feb 18, 2024, 08:04 PMYou're welcome.  I'm happy to continue but this week won't be daily as I'm on holiday for a few days.

Enjoy the gigs you closet Swiftie

Safe travels

She's very cool. Nah mate, just out enjoying my boat.

Nav @ ASX close today by my spreadsheet estimate = 77.6 cps

Thanks. There is alot of action during the reporting season. So it's too easy to focus on the negative results as there have been a few shockers.

Wisetech great update ...share price on fire

Should boost NAV .....like 7% of portfolio and share price up  12% is ??   :)  :)  :)  :)

Looking like a promising day.

Lot of big price movements today.  Some good, some not so good but without further ado my spreadsheet at estimate at close of ASX today suggests NAV is 77.97 cps, almost 78 cents !   A reminder, my spreadsheet does not account for exchange rates differences in the past week, or portfolio movements since their last publicly stated portfolio allocation or performance fee accrual so the actual NAV to be reported tomorrow will be slightly different.  Last weeks reported NAV was 75.69 cents so its been a very good week with NAV up an estimated 2.28 cps.

Quote from: Basil on Feb 21, 2024, 08:50 PMLot of big price movements today.  Some good, some not so good but without further ado my spreadsheet at estimate at close of ASX today suggests NAV is 77.97 cps, almost 78 cents !   A reminder, my spreadsheet does not account for exchange rates differences in the past week, or portfolio movements since their last publicly stated portfolio allocation or performance fee accrual so the actual NAV to be reported tomorrow will be slightly different.  Last weeks reported NAV was 75.69 cents so its been a very good week with NAV up an estimated 2.28 cps.

thanks for the regular updates Basil......I have a boat load of these

I've bought my 50,000 warrants back that I sold last week. Cost me the brokerage.

What was I thinking.....

An exceptional buying opportunity with the NAV at ~ 78 cents and likely exercise price only 63 cents 8 months from now.

https://www.jardendirect.co.nz/app/news/urn:dt:6621245

77.78 cps NAV.  About 0.2 cps lower than my estimate which makes sense as they are currently accruing a 10% performance fee in the NAV and its up 2 cents in the last week so that explains the 0.2 cps difference to my estimate.   It's easy enough to adjust for the performance fee in my future NAV estimate calculations so I have updated my model accordingly to make it more accurate.

Quote from: Basil on Feb 22, 2024, 12:11 PMAn exceptional buying opportunity with the NAV at ~ 78 cents and likely exercise price only 63 cents 8 months from now.

So are you saying 7c for a warrant plus 63c to convert.   Versus current price or 73c?

Quote from: Dolcile on Feb 22, 2024, 06:08 PMSo are you saying 7c for a warrant plus 63c to convert.   Versus current price or 73c?

Yes but its 7.5 cps now.  Sounds too good to be true eh considering that 63 cents isn't payable until 25 October.  Keep in mind that there are 2 more quarterly dividends for BRM between now and then, plus the one just announced payable 28 March.  For what it's worth, I have a very large holding in both the shares and warrants.   P.S. Daily NAV at ASX close today is unchanged at 77.78 cps. 

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 78.01 cps

Low 6's the other day .......now 8.5

WOW

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 78.23 cps

Interesting...buying back their own shares at 73 cents.  https://www.nzx.com/announcements/426885

Quote from: Basil on Feb 27, 2024, 09:21 AMInteresting...buying back their own shares at 73 cents.  https://www.nzx.com/announcements/426885

Wouldnt they be better off buying more carsales.com or something

Quote from: winner (n) on Feb 27, 2024, 09:23 AMWouldnt they be better off buying more carsales.com or something

It would seem I am not the only one updating NAV almost every day because they have worked out that at 73 cents it's at a greater than 6% discount to NAV.  Shame BRM can't buy Turners eh  ;)

It is an easy choice - in 30 days BRM are dishing out quite a few shares on the DRP.
Last time it was around 2.2m shares.
If they can buy them now at 6% discount and hand them back to shareholders at 3% discount
in 30 days the 3% saving is annualised about 43% return!
Better than having the money sitting on some bank account.
Now, where can they find another 2.2m discounted shares......

Good news. This sets a clear bottom price for BRM where it can expect support.

Dump a few underperforming stocks and buy back your own shares.

Warren Buffet 101 in action.

Wise Tech has been a good investment.

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 78.49 cps

Wise Tech up very nicely today.

Flat day on the ASX, down 0.03%, but BRM NAV up very nicely to 79.06 cps by my estimate. 

With the head share at 73 cents the disconnect with NAV is more of a reflection on the NZX being out of step.

Quote from: Basil on Feb 28, 2024, 06:47 PMFlat day on the ASX, down 0.03%, but BRM NAV up very nicely to 79.06 cps by my estimate. 

Actual NAV 79.60 cents, more than half a cent above what my spreadsheet suggested.  I'm not complaining!
Probably exchange rate related because I'm not accounting for that in my model.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/427127/413962.pdf

BINGO !  ASX close today at end of month by my spreadsheet calculation after adjusting for performance fee accrual NAV = 80.00 cps !
Disc: Bought a few more today at 74 cents.

It's a great portfolio.

I was slightly distracted today with my NZ oil and gas shares that came to life.

Some people will get a shock when they see 80 cents nav for month end BRM.

Quote from: Basil on Feb 29, 2024, 08:00 PMBINGO !  ASX close today at end of month by my spreadsheet calculation after adjusting for performance fee accrual NAV = 80.00 cps !
Disc: Bought a few more today at 74 cents.

And going ex-div in under a week.......  8)

Hope it is 80.  Exchange rates from even one day to another can make a difference.  We'll know later today when they report month end NAV.
If it is, that would cap a very good month for the BRM portfolio up 4.7%, (compared to the ASX200 up 0.6% in February), backing up after a good month in January and not forgetting very strong months in Nov and Dec 2023.  Annual inflation data the other day in Australia also very encouraging, was 3.2 or 3.1, sorry, can't remember which, compared to 4.7% here.  Chances are, interest rates ease over there a lot earlier than N.Z. and an economic recovery starting much sooner.

Your spreadsheet is working fine. I'm picking with the renewed confidence that the fund managers have dumped a few of the underperforming positions. Like Wow for example.

Quote from: sideline on Feb 27, 2024, 09:44 AMIt is an easy choice - in 30 days BRM are dishing out quite a few shares on the DRP.
Last time it was around 2.2m shares.
If they can buy them now at 6% discount and hand them back to shareholders at 3% discount
in 30 days the 3% saving is annualised about 43% return!
Better than having the money sitting on some bank account.
Now, where can they find another 2.2m discounted shares......

The DRP shares are allotted to shareholders at a 3% discount to the weighted market price at the time not the NAV

I have been trying to find the participation doc. to join the DRP without success. Any help? Thanks.

you choose that option on registry website .....computer share website

Or get it here

https://barramundi.co.nz/investor-centre/capital-management-strategies/#DRP


Click on download participation form link

Thanks Guys all done.

Xero helpingbthe cause today ...one of their bigger holdings

Xero's new AI thing JAX sounds pretty cool ...keep share price going up I reckon

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 79.68 cps

the discount to NAV is attractive, so I bought more last week, looking forward to the attached DRP shares as well, crickey last DRP were a gift at 62.5cps...... I am getting about 14000 shares every time the divi rolls around via the DRP plus up 11% on the head shares at the moment so happy days. I do like the 3% discount on offer for DRP shares as well.   

Nice to see other smart investors on board in BRM with substantial holdings.  We should get together after the annual meeting this year and have a few drinks to toast our success.

I like the whole structure of BRM, especailly having all it's holdings in AUS and the DRP at a 3
% discount to SP which is already discounted to NAV.
Even if the head SP does nothing an 8% payout every year is a solid performer.
I have no doubt one day our paths shall gross Basil, more than likely involving a drink or 2

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 79.56 cps down slightly from Friday 79.68.

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 79.67 cps up 11 bps from yesterday.
Kingfish group all trade ex-divvy tomorrow with dividends being shed as follows:-
BRM 1.45 cps
MLN 1.86 cps
KFL 2.58 cps

NAV @ ASX close today by my spreadsheet calculation after adjusting for performance fee accrual = 79.57 cps down 10 bps, less dividend payable 1.45 cps = NAV ex dividend 78.12 cps.

78.24. Close.

Plenty of green prices so far today.

Been out fishing and too tired to update NAV tonight but a lot if green on the watch list BRM screen so it will be up. Will update tomorrow morning. Thought I did well getting 7 good snapper but whoever landed 51000 Barramundi this morning for only 71 cents outfished me !!

Latest NAV at close of ASX yesterday 79.09 cps, (ex divvy)

Latest NAV at close of ASX today 79.90 cps, (ex divvy)  :D

What a week. The head share represents pretty good buying. The share buyback should ramp up to take advantage.

Fabulous week.   Not just the shares that are great buying.  I actually think the warrants are outstanding buying.  8.4 cents now and only 63 cents more on 25 October 2024, total 71.3 cents, and all the capital growth between now and then and you're only tying up 8.4 cents capital per warrant for now.  Disc: Bought another couple of hundred thousand warrants today and on the bid for a few more there.

it's an interesting trade off, say $100k invested in head shares now @ 73cps plus 2 divi's between now and warrant issue date, or buy the warrant 8.4cps and earn interest on the money in the bank and exercise the warrants when due. I like the DRP adding small chunks of shares to my larger pile of shares

Very solid performance from BRM for February, up 5.2% against the benchmark of 0.7%
I think the Australian economy is much better placed than N.Z.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/427725/414622.pdf

Really interesting to note in that Feb report, (bottom of page 3) that BRM has substantially outperformed their benchmark index over 1 year, 26.4% (10.9%) 3 years, 13.3% v (9.9%) and 5 years 17.5% v (9.2), (benchmark in brackets)  An outperformance of 8.3% per annum over 5 years in particular is deeply impressive and testament to not only the skills of the lead investment manager Robbie Urquart but also the other analysts in the team that support him.  Very happy to stick with the Barramundi team over the long run.  Disc: Substantial position in the shares and warrants.

It looks like they have increased the investment in Wise Tech. Now showing 8 percent of the portfolio.

Maybe just the Wise tech share price increasing rapidly Toddy?  Curious what you think of their fund outperformance over recent months and years?  Impressed, super impressed or just meh ?

I only entered the fund via the warrants during the couple of weeks after they were issued. Bought a million warrants. So minimal cash outlay. The timing was perfect issuing the warrants in the stressed market at the time.

Since then I have been following their fund and individual stocks with great interest.

They have done extremely well. It would have been nice if they had some exposure to the mining sector. But I'm guessing since they are a NZ fund manager they have to go for the woke, save the planet stocks.

Looking ahead, the portfolio is definitely geared towards current investment trends and should do well. And if Ift makes the ASX it's main trading board, then they could look at adding them to the portfio.

Some of their portfolio investments are probably 'take over' targets aswell.

Nice timing with the warrant purchase Toddy.

Latest NAV at close of ASX yesterday 78.77 cps.

Latest NAV at close of ASX today 79.07 cps.
I suspect, (don't know for sure), the company has been in a close out period with respect to buying back its own shares during the 5 day ex dividend period and normal operations might commence tomorrow or shortly thereafter.  Current discount is just on 9% and they can buy them back when the discount is >6%.
I bought a few more warrants today.

With the US markets being positive overnight then we should expect another positive day on the ASX.

Yes, the discount at 9 percent is puzzling. The BRM fund manager should be buying up as much as they can at these levels.

Im sure that they have a plan, so maybe you are correct in thinking that there are some regulations that they have to navigate.

Looked it up.
Extract from page 3 of their Barramundi Share Buy-back policy documment.

QuoteThe buyback programme may be suspended:
i. around key market announcements and where market price calculations are
being made (for example, in calculating the volume weighted average price
for the dividend reinvestment plan or prior to the exercise date for any
warrants);

Whole document is here https://barramundi.co.nz/assets/Uploads/Barramundi-Share-Buyback-Policy.pdf

Also confirming the 5 day close out period for ex divvy volume weighted average pricing calculations ended at close of trading yesterday.  Agree 100% with your first sentence.

Quote from: snapiti on Mar 10, 2024, 10:36 AMit's an interesting trade off, say $100k invested in head shares now @ 73cps plus 2 divi's between now and warrant issue date, or buy the warrant 8.4cps and earn interest on the money in the bank and exercise the warrants when due. I like the DRP adding small chunks of shares to my larger pile of shares

Is the DRP 3% discount on the share price or the NAV? clearly not worth it if based on the NAV?

The price of the shares issued in lieu of dividend is based on the 5 day volume weighted average price (VWAP) of the shares traded on the day it went ex divvy and the following 4 trading days, less the 3% discount.

Latest NAV at close of ASX today 79.37 cps

DRP set just under  70cps....NAV close to 80cps......happy days

0.7896 as at close of trading on ASX yesterday.

78.00 as at close of trade on ASX yesterday.

Close of trade on ASX today 77.90 cps.

78.01 pretty close.

Green day today after a week of profit taking.

78.80 cps

Is anyone else missing Basil's update? ;D

Yeah me lol. Sorry, movies with friends last night and been out with my granddaughter all day today.  NAV as at the close of trade on ASX yesterday was 78.63 cps.

Thanks Basil. Starting to  rely on it.

I bought a pile more yesterday at 72.

No worries, happy to help and modelling seems to be pretty accurate.  Accuracy will improve further when they update their portfolio next month. 
Nice pick-up at 72 cents 👍
I paid 73 for a few more this week and been busy buying Marlin at 98 and 99 cents with NAV at $1.0573 and expecting another free warrant issue soon.
Getting less and less interested in the NZX as time goes on.  Seems to have been moribund forever.

CAR going great guns today ....... Should help the cause

Yes, fair bit of green on the screen at this stage today. 

P.S. 79.13 cps NAV at close of ASX today up 0.50 cps.

No Love for Kingfish? also with a big deficit to NAV

78.37 cps at close of ASX today.

Nice.

Hopefully it was the fund manager that picked up 290,000 shares at 71 cents.

Quote from: Toddy on Mar 27, 2024, 08:21 PMNice.

Hopefully it was the fund manager that picked up 290,000 shares at 71 cents.

It cant be as part of their buy back mandate is only to be purchasing modest amounts so they can not be perceived as market makers for their own shares

Estimated last evening. 78.79 CPS

Actual NAV 78.93 cps http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/428788/415847.pdf

10% discount to NAV !

Hey Basil, why do you think there is such a discount to NAV?   I'm wondering whether this is the market mispricing the stock or whether BRM consistently trades at a discount. Thanks in advance.

I think whoever bought yesterday at 71 cents did very well !  That's an unusually high discount to NTA.  I did some very detailed analysis some time back and on average over the last decade it has traded at a 0.5% discount to NAV.  Just half a percent!  This is more evidence to support my contention that the market on average over the long haul thinks no discount to NAV is warranted.

Great to know - thanks!

79.53 cps.

Quote from: Basil on Mar 28, 2024, 08:25 PM79.53 cps

Im not feeling the love with the warrants doing their own thing.

Quote from: Toddy on Mar 28, 2024, 08:42 PMIm not feeling the love with the warrants doing their own thing.

I hear what you're saying and have heaps of warrants myself as well as a lot of BRM shares.  Gosh the warrants look awfully cheap to me @ 7.1 cps and an expected 63 cent exercise price on 25 October.

Quote from: Basil on Mar 28, 2024, 08:25 PM79.53 cps.

Bingo, I got one bang on the money https://www.jardendirect.co.nz/app/news/urn:dt:6656554

Very sour start to the new financial year.  77.33 cps.

Red red red. It's best to get the worst day over with first, then rebuild the confidence.

The warrant price has dropped away a wee bit...

Quote from: Basil on Apr 03, 2024, 08:28 PMVery sour start to the new financial year.  77.33 cps.

Actual NAV 77.21 cps.  http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/429065/416188.pdf

Fair bit of green on the BRM watchlist screen today at this stage though so that's good.

Tough week.  77.07 cps.

Bit of a recovery today, 77.62 cps.

Been a horrible 8 days since I last updated, (daily updates have become an administrative burden so I will only do them from time to time going forward), and frankly it feels like the whole ASX is in full blown correction mode on the back of white-hot geopolitical tensions.

Unless I have made a mistake in my spreadsheet update, (unlikely), latest estimate is 74.86 cents which is pretty sobering as its slightly below where it started the year.  Suppose it's good we have at least got the dividend so are keeping our head slightly above water for 2024, even if it's only just above water.  Still, seeing the previous 3 months gains wiped out in what has only been just a little over half of April, is frankly, pretty disappointing.

It's taken a hiding over recent sessions for sure.

Keep the faith, the companies in the portfolio are going about their business as usual.

This year is going to be like this... really up and down. Started the year great and slowly turning to custard for all my stocks! It's a sign of the times, business everywhere is doing it tough. I use this share for exposure to the asx market, I don't have the time to do good research and will leave it to these chaps instead.

OMG ......BRM NAV down 6% this month

Suppose as long as it's beaten it's benchmark 6% down not too bad

At least the share price has only gone down 1 cent so that's not so bad

Quote from: winner (n) on Apr 19, 2024, 11:04 AMOMG ......BRM NAV down 6% this month

Suppose as long as it's beaten it's benchmark 6% down not too bad

At least the share price has only gone down 1 cent so that's not so bad

Then take the dilutionary effect of the warrants at probably close to 63c...... :-\

Quote from: Ricky Bobby on Apr 17, 2024, 07:27 AMI use this share for exposure to the asx market, I don't have the time to do good research and will leave it to these chaps instead.

BRM offers some exposure to the ASX.  Their "diversified portfolio" is void of commodity stocks. They're heavy with mid-spectrum and defensive stocks, especially banks. There have been excellent gains in metals, energies and even for agricultural stocks in the first quarter of this year.  None of that has benefitted BRM.  Macro and geopolitical events point to a tighter squeeze to come for commodities, in particular metals.  The term 'super cycle' is starting to be chucked around. With a focus only on BRM that will pass you by.

Financial Review this morning reckons that: "Australian shares are poised to fall as solid US labour data reinforced bets that interest rates will be higher for longer. US jobless figures held steady overnight, adding to the week's positive reports on the health of the world's biggest economy."

Quote from: Basil on Mar 08, 2024, 07:59 PMFabulous week.   Not just the shares that are great buying.  I actually think the warrants are outstanding buying.  8.4 cents now and only 63 cents more on 25 October 2024, total 71.3 cents, and all the capital growth between now and then and you're only tying up 8.4 cents capital per warrant for now.  Disc: Bought another couple of hundred thousand warrants today and on the bid for a few more there.

Warrants down today to $.037.........must be an error

Quote from: Left Field on Apr 19, 2024, 05:13 PMWarrants down today to $.037.........must be an error

I agree. You can have mine for $0.05.Just let me know. ;D

Quote from: Left Field on Apr 19, 2024, 05:13 PMWarrants down today to $.037.........must be an error

Big correction in overseas markets since that post...haven't you got anything better to do than troll old posts?  Warrants are high leverage hit or miss financial instruments and everyone knows that including you.

More than 6 months to run, 63 cent exercise price and NAV about 74 cents. Good prospects for value creation on exercise if markets go well and the most you can lose is now 3.7 cents.

Warrants are a great way to invest with high "potential" upside and modest outlay. Food for thought for you for the weekend.
Try not to worry how much will you lose on your portfolio if things go full "thermo nuclear" in the middle east?

Quote from: Hectorplains on Apr 19, 2024, 12:02 PMBRM offers some exposure to the ASX.  Their "diversified portfolio" is void of commodity stocks. They're heavy with mid-spectrum and defensive stocks, especially banks. There have been excellent gains in metals, energies and even for agricultural stocks in the first quarter of this year.  None of that has benefitted BRM.  Macro and geopolitical events point to a tighter squeeze to come for commodities, in particular metals.  The term 'super cycle' is starting to be chucked around. With a focus only on BRM that will pass you by.

Do you recommend anything like brm that covers the above? Have thought about what u are saying, but haven't found something suitable. Need a Div also...

I'm directly invested, so I don't know a whole heap about Aussie EFTs but maybe have a look at Vanguard Commodity Strategy Fund?

have a look at RF1 on the ASX.....it's a managed fund been going for just a few years but ave 18% PA returns

Quote from: Basil on Apr 19, 2024, 08:59 PMBig correction in overseas markets since that post...haven't you got anything better to do than troll old posts?  Warrants are high leverage hit or miss financial instruments and everyone knows that including you.

More than 6 months to run, 63 cent exercise price and NAV about 74 cents. Good prospects for value creation on exercise if markets go well and the most you can lose is now 3.7 cents.

Warrants are a great way to invest with high "potential" upside and modest outlay. Food for thought for you for the weekend.

Try not to worry how much will you lose on your portfolio if things go full "thermo nuclear" in the middle east?

Thanks Basil.... I had merely observed, "Warrants down today to $.037.........must be an error," so no need to resort to insults about trolling.

Going back over past threads and trading history is a good learning exercise IMO...... and we all have a lot to learn.

I'll check again in 6 months and wish you well.

Ricky - Smart shares have an Australian resources ETF and I believe it's a PIE fund.   More info here including the yield.  https://smartshares.co.nz/types-of-funds/australian-shares/au-resources.

Quote from: Basil on Apr 20, 2024, 01:34 PMRicky - Smart shares have an Australian resources ETF and I believe it's a PIE fund.   More info here including the yield.  https://smartshares.co.nz/types-of-funds/australian-shares/au-resources.

Thanks for pointing that out Basil .... Might have a look at it as an exposure to Aussie resources stocks

I'm sure others might appreciate your efforts in trying to help them out

You could also have a look at AFI. Listed both exchanges but not a PIE.

https://www.nzx.com/companies/AFI/analysis

Quote from: 777 on Apr 19, 2024, 06:37 PMI agree. You can have mine for $0.05.Just let me know. ;D

I'll give you 4 cents.  How many have you got ?

Quote from: Basil on Apr 20, 2024, 01:34 PMRicky - Smart shares have an Australian resources ETF and I believe it's a PIE fund.   More info here including the yield.  https://smartshares.co.nz/types-of-funds/australian-shares/au-resources.

I use Barramundi for some ASX exposure jointly with ASR for some resource exposure. Both tax efficient as far as I understand with my little accounting knowledge :)

Quote from: Basil on Apr 22, 2024, 02:02 PMI'll give you 4 cents.  How many have you got ?

 ;D Sorry.I think they will remain of value at due date.

Quote from: thedabsman on Apr 22, 2024, 02:13 PMI use Barramundi for some ASX exposure jointly with ASR for some resource exposure. Both tax efficient as far as I understand with my little accounting knowledge :)

See note 6 - Each fund is a listed PIE (portfolio investment entity) https://smartshares.co.nz/document-library/product-disclosure/smartshares-exchange-traded-funds-specialist-series-product-disclosure-statement1.pdf
Makes it really simple for investors.   

As at 5.00 p.m. N.Z. time wee bit of a recovery from last week's 74.72 cps to 75.56 cps.

A feel good day. How's the NAV doing.

Sorry mate, away on my boat with only my phone.  Will update when I am back in the office on Wednesday.

Lot of green on the screen that's for sure !

P.S. Actually, just remembered, they will update on Wednesday this week anyway with tomorrow being end of month.  I'll let them do the work this week.

No worries, enjoy.

Im gearing up to pick our Kiwifruit crop so that will keep me occupied for a few days.

NAV 30TH April.7663
Discount 7%

Good recovery.

Beagle could you please remind me of BRM currency hedging policy.....NZD been weakening against the AUD

I think it moves around a bit Snapper, certainly that's what the corporate manager told me a while back but their normal benchmark is 70% hedged.

Fair bit of green on the screen today, stark contrast to NZX which in places looks pretty brutal.

Might revalue portfolio if I get time tomorrow.

Thanks Beagle, I don't mind a bit of currency risk.
Yep many areas of the NZX getting beaten up.
I have 60% of my share market portfolio in BRM, only 15% in NZX stocks, another 10% in RF1 which is a fund on the ASX, rest spread wide, I believe ASX will outperform NZX in the forseeable future (2 years) 

76.28 cps as at close of ASX today.  Agree Snapper, NZX is bloody hard work.
Speaking of landing the big one, (Barramundi), did you see this  https://7news.com.au/news/katherine-teenager-becomes-millionaire-after-reeling-in-prize-fish-c-14495794

Got lots of these, mainly warrants now and lots of Marlin. 

Quote from: snapiti on May 06, 2024, 06:45 PMI believe ASX will outperform NZX in the forseeable future

Very high probability of that occurring in my opinion.
Good day yesterday, NAV up 1.6% (1.24 cps) to 77.51 cps by my calculations.

NAV up 2.5 cps this week to 78.26 cps.  Very nice.  9.3% discount at 71 cents.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430833/418205.pdf

Quote from: Basil on May 09, 2024, 12:51 PMNAV up 2.5 cps this week to 78.26 cps.  Very nice.  9.3% discount at 71 cents.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430833/418205.pdf

Prob glad they have the likes of Carsales and Xero amongst their biggest holdings

Quote from: Basil on May 09, 2024, 12:51 PMNAV up 2.5 cps this week to 78.26 cps.  Very nice.  9.3% discount at 71 cents.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430833/418205.pdf

One of the largest discounts on offer for a long time, BRM NAV outperforming the ASX

Quote from: snapiti on May 10, 2024, 07:59 AMOne of the largest discounts on offer for a long time, BRM NAV outperforming the ASX

Makes you wonder why they've stopped buying the shares back at this level ?

Quote from: Basil on May 10, 2024, 02:10 PMMakes you wonder why they've stopped buying the shares back at this level ?

According to the buy back agreement there could be several reasons for this.
1. the company has reached 5% buy back (highly unlikely)
2. the company re visits it position of buy backs every 12 months and needs the board to meet extend it. This maybe due.
3. The monthly meeting of the board decide on many aspects of the buy back whilst the buy back is underway including how much to allocate for the next month.
Would be interesting to ask more about this at the annual meeting.
Happy holding

The simplest explanation is they are on autopilot and asleep at the wheel.

Quote from: Basil on May 13, 2024, 11:12 AMThe simplest explanation is they are on autopilot and asleep at the wheel.

Maybe they are ....couldn't even beat the benchmark in April (unless -3.9% is higher than -2.7% lol)

But weren't asleep the whole month ....did buy some more of Johns Lyngs (who need more catastrophic events to happen)

To be fair they have soundly beaten the index in the last year, adjusted NAV up 15.1% v index 10.9% and 5 year performance 12.9% v 8.7% is very good too.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/430960/418331.pdf

In very simplistic terms.
If someone wanted a dividend stock to return 7% they would buy a share at $1 to get a 7 cent return.
If interest rates drop and that investor now only wants a 5.5% return they would now pay $1.27 for that same share.

Barramundi shares seem to be priced close to their current NTA of the time, less perhaps some discount.

My question is - Would falling interest rates increase Barramundi share price as much as other dividend stocks?

Yep when interest rates were close to 0% BRM had 10% or greater premium regularly

Big day. It's been a while.

Yep, NAV went up almost a cent!

Quote from: Toddy on May 16, 2024, 06:14 PMBig day. It's been a while.

Yeap, Official NAV announced today as at close of trade yesterday was 77.78 cps and based on my workings was up more than a cent today to 78.90 cps !

Hopefully we will see some movement in the head share and warrants tomorrow.

They are looking cheap.

I'm hoping this discount continues till at least DRP calculation period is over! I do not understand such a deep discount

Xero is coming though with decent numbers.

We need more companies in the portfolio delivering like Xero.

Quote from: Toddy on May 23, 2024, 12:25 PMXero is coming though with decent numbers.

We need more companies in the portfolio delivering like Xero.

5% of the portfolio and up 8.5% currently.  :)

Has the portfolio caught the winter blues.

It's been a tough gig lately that's for sure.  As at close of trade at end of month on ASX yesterday, I estimate NTA was just on 76 cents.  We'll see actual NTA when they report on Tuesday.

Just a reminder regarding the warrants.  The exercise price is 69 cents less all dividends declared and paid on ordinary shares during the life of the warrants, (4.44 cents per share declared).  4.44 x 4/3 = 5.92 cents.  there's likely to be just on 6 cents in total dividends declared and paid during the warrants term and as the exercise price is rounded up or down to the nearest cent its almost certain the warrants exercise price will be 63 cents (69 - 5.92 = 63.08).  Exercise date is 25 October 2024.

Headline in paper Aussie shares rally to 100-day high, near all-time peak

So what's happening with BRM with its portfolio of stellar stocks

I get 76.7 cps on my spreadsheet after yesterday's big rally.
Disc Still holding a truck load of warrants that I expect will have an exercise price of 63 cents on 25 October 2024.
Got lots of Marlin shares and their warrants too.

Gosh, huge discount to NTA with Kingfish, KFL. On the other channel was reported as over $1.35 yesterday and today's surge on top of that !
$1.19 seems like a genuine bargain opportunity. Too good to refuse so I hovered up as many as I could get just before lunchtime. Very tasty !

thats great news, it means we are not competing for the same stock as I have been buying up BRM @ 67cps for the last week or so.
BRM has also offering up a large discount to NAV, also picked up a few warrents under 3cps, they have been a bit more scarce than head shares at 67cps

Well done me ol mate Snapper, snapping up bargains left, right and center.
Got truckloads of Barramundi warrants, Marlin shares and Marlin warrants already and recently added a good sized new position in the Discovery fund for good measure.  Happier these days to let fund managers do a fair bit of work for me so I can spend more time with family and friends including my best mate canine friend Tony the Pony.   

that's interesting beagle most of my share allocations are with fund managers now but highly focused away from NZ, thats why I like BRM as well as there generous DRP discount.
They are also very responsive (same day) to answering questions.
I also really like RF1 in Aussie but have to pay tax on their distributions.
That's ok cause they don't pay franking credits as well so only taxed once and they seem to only distribute about 50% of the gains.

Some value being added again today.

Like you Snapper, I have most of my money offshore now. The weak and anemic N.Z market in terms of equities is less than 25% of my portfolio now. Have some bonds here and cash to exercise Barramundi and Marlin warrants here too.

Yeah Toddy, updated NTA is now 77.1 cps at close of trade.

thanks for the update Basil, interesting BRM have a 70% hedge position NZD/AUD, whilst I think hedging is important the gambler in me thinks 70% is to high.
Has been trading lately with a 9% to 12%  discount to NAV which historically is at the very high end.
The warrants are interesting Basil, buying head shares lately @ 67cps has me fully loaded up so the warrant maybe sold.
Have you seen the list of warrant uptake from their many issues, even if the warrants are in the money only once have they experienced a high uptake.

I'm favorably inclined to exercise all my warrants Snapper and have maintained sufficient liquidity on hand to support that.  63 cents exercise price is simply too good an opportunity to pass up with NTA at 77 cents.

It was really good to finally see a strong week on the NZX...as well as on the ASX and other world bourses.  It's been a very long time between drinks since the NZX joined in the rally.  I think most people would have had a good week with value accretion in their portfolio.  Good stuff !

Plenty of nice looking green on the BRM watchlist screen today.  Looking forward to tomorrow's NTA update.

me to, got a heap of the head shares and lots of warrants now, crickey the warrants have huge % moves, although not a lot of liquidity most days

I picked up some more warrants today.  NTA probably over 78 cents now, (haven't checked today, have been really busy and am very tired so I will let the BRM team calculate it tomorrow), and exercise price of 63 cents gives a delta of a whopping 15 cents.  Even allowing for the dilutionary effect on NTA of warrant exercise and the current discount to NTA of the head shares, that's a huge delta for the warrants and very inexpensive and strong leverage on the prospect of this global rally continuing in the months ahead.

There you go Snapper me old mate.  I know you can't wait for tomorrow and neither can I after seeing all that green on the Barramundi watchlist screen lol.
Estimated NTA now 78.8 cps 
(As always, it will be a bit different tomorrow with my spreadsheet estimate not picking up exchange rate differences from one week to another).

Looking good. There is plenty of time to go until exercise date. The number could be compelling by then.

Quote from: Basil on Jul 17, 2024, 06:49 PMEstimated NTA now 78.8 cps 

Nice to see I am still getting the estimated NTA really close.  Actual NTA was 78.85 cps
https://www.jardendirect.co.nz/app/news/urn:dt:6745104  11% discount to NTA at 70 cents !

wowsers all put 79cps NAV, warrents still look attractive at 4cps, hard to buy in meaningful numbers though

I already have 650000 head shares and carry 500000 warrents so won't be converting that many, suppose that means I am cheering the warrents along and going along for the ride of the head shares, perhaps just convert my original free allotment

 Basil, would it be possible for you to supply a NAV tonight ahead of tomorrow's one from the company, NZD weak over last 7 days

Quote from: snapiti on Jul 24, 2024, 02:56 PMBasil, would it be possible for you to supply a NAV tonight ahead of tomorrow's one from the company, NZD weak over last 7 days

Hey Snapper.  My model doesn't include exchange rate movements as they hedge about 70% of them anyway from memory.  Current NTA based on watchlist prices on the ASX, (20 minutes ago) is 78.06 cps.

thanks Basil, yep 70% hedging of the $ is quite high, probably expensive to have as well.
What do you make of the warrant price, currently trading at 4.5cps when actual value is more like 7.5cps allowing for one more divi of 1.5cps to come off head shares

Quote from: snapiti on Jul 24, 2024, 06:21 PMthanks Basil, yep 70% hedging of the $ is quite high, probably expensive to have as well.
What do you make of the warrant price, currently trading at 4.5cps when actual value is more like 7.5cps allowing for one more divi of 1.5cps to come off head shares

Yeah, I'm planning on bringing up their hedging policy at the annual meeting.  We all know that with buying Barramundi we're investing in Australian shares.  Why is it necessary to have this expensive hedging all the time.  Surely having that in place and the net cost over time detracts from the performance of the fund.

Cheap as chips.

Quote from: Basil on Jul 24, 2024, 03:37 PMHey Snapper.  My model doesn't include exchange rate movements as they hedge about 70% of them anyway from memory.  Current NTA based on watchlist prices on the ASX, (20 minutes ago) is 78.06 cps.

jeepers basil how close can you get without hitting the bulls eyes. BRM Nav 78.04cps

Lot of green on the screen at end of month today.  You'd be tempted to think NTA had made great progress in the last week but sadly, last Thursday was a very tough day for the portfolio so progress has been pretty modest in the last week, up about three quarters of a cent...but just for a laugh and to poke fun at myself, let's have another go at hitting the bulls eye.   Estimated NTA I get is now 78.75 cps.  Now that I am tempted to think my valuation model works really well, I'll probably be miles off lol

Basil, it made a decent recovery after last week's bashing. Hopefully yesterday was just a warm up for today's action.

And it looks like the Fund Managers are buying up more heads at the current discounted levels.

Quote from: Toddy on Aug 01, 2024, 08:51 AMHopefully yesterday was just a warm up for today's action.

Lets hope so ! 

Quote from: Basil on Jul 31, 2024, 08:26 PMEstimated NTA I get is now 78.75 cps

78.67 cents..not far off the bulls eye.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRM/435469/423862.pdf

It looks like the Fund Manager is serious about bringing the price to Nav closer.

If the movements are more closely correlated then it is easier to track the portfolio with some confidence.

Definitely not feeling the love again today.

Tomorrow is another day.

We will be trading at NAV very soon.

What's tomorrows NAV.

74?

Some number I don't really want to know. Leave it till next week I reckon.

Current NTA as at close of business Friday = 75.28 cps.  Still carrying a lot of damage, down 4.3% month to date in August.
NAV has done a round trip top nowhere so far this year.  Paid a couple of divvies so far though, so I suppose that's something and another one due towards the end of September..

interesting though the SP to NAV discount has gone from 12% to 4%, probably at par if the warrents remain in the money

Jeez BRM hold PWR Power Holdings

Report record revenues and record profits yesterday

Share price down more than 20% today

Seemed to be rush to thev exits

Quote from: winner (n) on Aug 16, 2024, 01:49 PMJeez BRM hold PWR Power Holdings

Report record revenues and record profits yesterday

Share price down more than 20% today

Seemed to be rush to thev exits

??? PWR currently up 1.7%.
Almost all of the rest of their portfolio also very strong today.
Might update NTA this weekend if I get some spare time.

Quote from: Basil on Aug 16, 2024, 04:14 PM??? PWR currently up 1.7%.
Almost all of the rest of their portfolio also very strong today.
Might update NTA this weekend if I get some spare time.

That's some intraday turnaround

Hope BRM bought a few on the morning dump

Updated NTA 77.999 cps per my model.  Let's just call it 78 cents and have an extra drink this weekend to celebrate.
Also, today seeing as I now have quite a few KFL, I have constructed a spreadsheet for the Kingfish portfolio with their latest known share allocation percentages to keep an eye on their NTA which closed at $1.4334 today, (noting that the share price at the close of $1.32 just on an 8% discount).
Disc: I bought a few more KFL today, more ARG, some SML and also bought back a few Marlin.

thanks beagle I appreciate your efforts......NAV bounced back nicely

Beagle do you know why they report 2 sets of numbers in thier weekly reports
2 NAV numbers
2 close prices
2 discount to NAV prices

just worked it out......last weeks is along side this week

BRM 78.61 cps
KFL $1.4207

Very much looking forward to breaking through the 80 cents.

Another questions for those more knowledgeable than me, why is the total share holder return so much lower than the Adjusted NAV return?

Either way the return for the 12 months has been lower than a total world index fund, so I'm still struggling to see why these funds are attractive.

https://api.nzx.com/public/announcement/436388/attachment/425019/436388-425019.pdf

QuoteHighlights
• Net profit after tax for the year ended 30 June 2024 $28.1m
• Total Shareholder return + 7.1%
• Adjusted NAV return +14.5%
• Dividend return + 8.2%

I'm just in for the ride on the warrants. However, the exit strategy may require me to purchase the heads which I'm more than happy to do.

They do have a number of high performing   stocks within their portfolio. However the gains have been offset by some under performers.

You are correct in thinking that they 'should have' done better given the amount of time spent analysing the stocks and trips to Australia for investor days.

Quote from: Dolcile on Aug 20, 2024, 09:36 PMAnother questions for those more knowledgeable than me, why is the total share holder return so much lower than the Adjusted NAV return?

Either way the return for the 12 months has been lower than a total world index fund, so I'm still struggling to see why these funds are attractive.

https://api.nzx.com/public/announcement/436388/attachment/425019/436388-425019.pdf

Sometimes the shares trade at a premium and other times at a discount to NAV.
Total shareholder return measures the total return to shareholders from one balance date to another and that will be a function of the underlying NAV performance plus what premium or discount to NAV the shares were trading at, at each respective balance date.  You are much better to focus on adjusted NAV return for the year which reflects the underlying NAV performance adjusted for dividends and the benefits, when they occur, of the warrants.  Note, they assume when calculating adjusted NAV return that people take advantage of the 3% discount to share price, (i.e. people are fully subscribed to the dividend reinvestment scheme)
Hope that helps but if you need further clarification, please feel free to ask.

Can't keep up with the results today. They are coming thick and fast. Lots of positive news.

Market certainly seems to like the Wisetech result and outlook!  Seems like a very "wise" move to have a large holding in that...sorry, couldn't resist lol

We must be knocking on the 80s door.

BRM undiluted NAV as at 21/8/24 - $0.7914
22/08/2024, 14:35 NZST, MKTUPDTE
BRM undiluted NAV as at 21/8/24 - $0.7914

Date 21/8/2024 14/8/2024
BRM undiluted NAV $0.7914 $0.7639
Share price close $0.72 $0.72
Discount 9% 6%

The above net asset value (NAV) is unaudited and net of fees and tax.

The NAV per share is calculated after deducting treasury stock of 926,974 shares (acquired under the Barramundi buyback programme).

* The undiluted NAV excludes any impact on the NAV of the future exercise of warrants (BRMWH). At 21 August 2024, 69,484,210 warrants are on issue and may be exercised on 25 October 2024. The actual exercise price of each warrant is $0.69 less the dividends per share declared by the company with a record date between 26 October 2023 and the announcement of the 25 October 2024 exercise price. Dividends totalling 5.97 cents per share have been declared to date and there are no more dividends expected to be declared in the remaining period up to the announcement of the 25 October 2024 exercise price.

The five largest portfolio holdings at 21 August 2024 are approximately as follows:

CSL 11%
WiseTech 9%
Seek 6%
Xero 6%
AUB Group 6%

NAV - $0.7914
BRM Price: $0.72 - Discount of 9%
Total dividends:  $0.0597
Exercise Price:  $0.6303
Warrant Price: 0.058  -  Big discount to Exercise Price and even more to NAV

Welcome to the forum keerti.  The warrant excursive price will be 63 cents, (its rounded up or down to the nearest whole cent).

Thanks Basil, member since long time and started this thread :)
Appreciate your and others inputs, benefits a lot to amateurs like us. 

Opps yeah, just noticed that  :D   
Its a pleasure.  Beagles are yappy sorts of dog's so enjoy yapping about just about anything, especially if it involves more money for dog treats lol

Quote from: Toddy on Aug 20, 2024, 09:20 PMVery much looking forward to breaking through the 80 cents.

It's going to be VERY close.  Will update you just after ASX closes, shortly.
KFL $1.4345
BRM...wait for it...its coming,...lights, camera, action and drum roll please....buggar...not quite...79.98 cps.

what do we make of the head share price versus NAV.
Warrents even lower, currently allowing buyers total purchase price at 65.4 cps.
current NAV 78.5 cps 

Jeepers that's nearly a 16% discount to NTA  :o

Buying opportunity.

agreed

Perhaps it is because the performance has been poor over the last 3 years? 

Taken from the September report, a much better outcome over 5 years.

Time period              1 Month 3 Months 1 Year 3 Years  5 Years

Total Shareholder Return (1.5%)    +1.0%    +4.9%  (4.6%) +13.2%

Benchmark Index^          +0.1%    +6.0%    +15.7% +7.8%  +8.8%

good run up in the Aussie banks and stronger AUD in the last week could see the NAV over 80cps this week

I calculated the NAV at 79.1 cps about an hour ago.  Warrants at 1.7 cents + 63 cents = 64.7 cps = 18.3% discount to NAV !, (will be a little less with dilution when some of the warrants are exercised).  The imminent exercise date for the warrants is creating a, in my view, temporarily extremely high level of discount   which should normalize at some stage relatively soon after the exercise date (25 October).

I think is quite an opportunity, but you have to be in a position to exercise the warrants and obviously many aren't, hence the selling pressure creating the opportunity.   Disc: Top 20 warrant holder as per annual report.     I have added a lot more from what's shown in there.

I see you there, I have been on a buying binge and would currently make it to number 8 on the list

You'll have to be quick mate, I'm currently at # 6  ;D  I like simple math's when exercising warrants so I might round it up to an even number starting with 1 with a lot of zero's after it  ;)     Plenty of cash strapped holders unable or unwilling to exercise their warrants so I reckon let them come to you when bidding for more.  No point bidding it up at this late stage of the game.

Basil, out of interest how are you able to estimate the NAV?  Where do I find the number of shares held in each of the portfolio holdings?
Thanks

Quote from: Dolcile on Oct 08, 2024, 07:56 PMBasil, out of interest how are you able to estimate the NAV?  Where do I find the number of shares held in each of the portfolio holdings?
Thanks

The most detail of their holdings is from their annual repot- https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Annual-Report-2024.pdf

Page 15

Quote from: Dolcile on Oct 08, 2024, 07:56 PMBasil, out of interest how are you able to estimate the NAV?  Where do I find the number of shares held in each of the portfolio holdings?
Thanks

Towards the end of the month following each quarter they issue a report containing the fund allocation in terms of percentages to each share.  We're due for an update later this month.  I use those allocations as the basis for creating a spreadsheet that enables me to compare the price of each share and its percentage in the portfolio, as at the last NAV date with the prevailing price at any time I choose to update the spreadsheet with the current spot price. I update the spreadsheet percentage allocations each quarter when new information on allocations comes to hand to ensure its as accurate as possible.  I don't bother with exchange rate variations from week to week because a fair bit of the fund is hedged back to $N.Z, although some might like to incorporate them in any spreadsheet they create.  It may be possible to do all this is share sight or some other online platform that gives a live feed of prices.  I haven't bothered to try and do this.   Their most recently disclosed portfolio allocations are here  https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Newsletter-June-2024.pdf

Jeepers after the chat yesterday up 23%  ;)

OK OK that is only 0.4c.... ;D

Quote from: Sideshow Bob on Oct 09, 2024, 02:03 PMJeepers after the chat yesterday up 23%  ;)

OK OK that is only 0.4c.... ;D

Probably more to do with the ~ 1 cent increase in underlying NAV so far today.  Just updated the NAV with latest prices off the ASX and its 80.02 cps by my calculations.  Woohoo !!
Opportunity definitely knocks with the warrants at circa 2 cents and effective entry price to BRM of only ~ 65 cents.  I bought some more this morning to make up to a nice round number with a LOT of zero's lol

I expect the Australian central bank will start easing monetary policy aggressively in 2025 giving strong tailwinds to the ASX.  2025 should be a great year for the Barramundi portfolio.

Interesting, even around the 2.5c mark looks like a reasonable entry.  Just got to hope that the NAV and SP eventually closes.

The dilution could be upto 3.5c/share (depending on how many warrants are exercised) so any short-term gain is likely to be very small (1-2c/warrant exercised).
But this is not the only reason to buy warrants......exercising them has 2 other benefits over buying the head shares:
1. no commission (BRM actually pay this to brokers when required (e.g. for ASB/FB/Sharesies) so essentially comes out of the nta (but a small amount overall - say 0.5% including other costs of the company having warrants)
2. BRM is relatively illiquid - warrants are a good way of getting a sizeable block without moving the underlying head share price - imagine trying to buy 1M BRM on market - would probably cause a 5c+ price increase.

It will be really interesting to see what happens to BRM price in the few days after exercise this time - could well take a dip as people rebalance (sell) shares after getting new ones - its been a while since any of the FF Triad have had a successful warrant issue (i.e. with the majority of warrants exercised), but if it does dip the big gap between share price and nta should see them bounce back (even with a 3c+ drop in nta post exercise).

I'm working on the assumption that somewhere around half of the warrants will get exercised.  Seeing as we don't have any reliable way of estimating how many might get exercised if we assume half and that the NAV is 80 cps at the time before exercise, the math's on a one for four warrant exercise where half are exercised works thus.

80 cents per share nav + 1:4 issue where half exercised = 1:8 at 63 cents = 63/8 = 7.875 additional NAV, total NAV for 1.125 shares = 87.875 cents, therefore NTA for 1 share post exercise = 78.11 cps.  I don't know for sure, but I think most people exercise them using the online portal Barramundi provide and then direct credit the funds.  Sure, there is probably a minor amount of brokerage paid for some people who need their broker to hold their hand to fill out a simple online form.

Assuming the above is somewhere around where it works out those buying the warrants today at 2.5 cps are paying 65.5 cps for 78.11 cps of assets = 16.15% discount to NAV.  That's the highest the discount has been in many years.  I expect it will revert to a normal level of discount of circa 6% over a period of a few months after the warrant exercise. 

I did a bit of research on warrant conversion % compared to SP........I think this time we are going to see an 80% plus conversion rate

Quote from: snapiti on Oct 09, 2024, 07:35 PMI did a bit of research on warrant conversion % compared to SP........I think this time we are going to see an 80% plus conversion rate

When was the last time it was that high ?
I think you and I between us are going to affect the result a bit lol
Did you snap up any more today Snapper ?
I got my snout into 100K more at 2 cents at the open.  Couldn't stop myself being in for an even bigger feed.

Just wondering, how can I confirm the warrant exercise price?

EDIT.  Is it just the 69c minus 4xdividends since issue date?

Yes that is it and the exercise price has been confirmed at 63 cents, see recent company announcement

Nice to see NAV confirmed today at 80.3 cents and plenty more green on my BRM watch list screen today.  Happy days.

https://barramundi.co.nz/investor-centre/capital-management-strategies/

link to previous warrant uptakes, last time there was a huge gap between exercise price and NAV they had a 90% plus uptake

Thanks Snapper, perhaps you are right and warrant uptake will be well north of 50%, certainly, I am sure you and I are both exercising our warrants so that will affect the percentage a bit lol

Updated NTA as at close of ASX yesterday I estimate at 80.44 cps.

I still think no matter the slightly higher dilution, this is an outstanding opportunity.  Based on the average discount BRM and others in the fisher funds group have traded at over the last year I think there's a high quality and substantial free lunch on the table, not unlike going to the annual meeting lol...expect with this free lunch you'll be able to dine out for a lot longer  😊

I'll be exercising all my warrants both free and a few purchased. I'd expect about 80% or more taken up. Totally agree this discount to NTA is short lived especially considering the Aussie economy will grow faster than us and also interest rates here dropping quickly in the next 12 months. Fill your boots for sure. Dont mind the discount around for a few DRP cycles thou...

As at today count me in for someone else who wil be exercising my warrants. But I'm not burning my cash until a bit closer to due day. Just in case.

Does anyone know if you can exercises the warrants via Sharesies?

Quote from: Dolcile on Oct 11, 2024, 12:48 PMDoes anyone know if you can exercises the warrants via Sharesies?

Why wouldn't just go here and hand over your loot. Do you have a CSN?
https://www.warrants.co.nz/barramundi

Latest estimated NTA as at close of trading on the ASX today 80.38 cps

Quote from: Dolcile on Oct 11, 2024, 12:48 PMDoes anyone know if you can exercises the warrants via Sharesies?

Yes, you can (assuming you hold them in Sharesies).

Quote from: Minimoke on Oct 11, 2024, 12:56 PMWhy wouldn't just go here and hand over your loot. Do you have a CSN?
https://www.warrants.co.nz/barramundi

Sharesies is a custodial service. You cannot do anything within Sharesies under your CSN. So he needs to exercise them via Sharesies OR transfer them out first, then exercise via your link or directly via Computersharer.

If NTA goes over 81 cents next week it's going to be really hard to resist buying even more warrants even though I have a truck load already.

Talk in the media today of a possible 75 bps OCR cut by the RBNZ in late November.  Makes sense to me seeing as the current rate of 4.75% is still very restrictive, the economy is extremely weak and RBNZ don't meet again for another review for 3 months after that.

Got to thinking today when the Reserve Bank of Australia (RBA) might start cutting.  Their rate is currently 4.35%, which perhaps explains why their economy is not completely in the toilet like our's, and they meet again to review it in early November.
https://www.rba.gov.au/

Despite the 50 bps cut this week by RBNZ and the possibility of a deeper 75 bps cut in late November, I still believe the Australian economy will easily outperform N.Z. for the foreseeable future.  Makes sense to have a sizeable portfolio allocation to Australia in my opinion.  My preferred exposure, (by quite some margin), is through the super high performing Discovery fund but that fund is now closed for further investment, so Barramundi is coming in for quite a lot of my attention.

Hi Basil.    In terms of Australia exposure, have you given much thought to an ASX200 index fund - as opposed to BRM?

Quote from: Untamed on Oct 11, 2024, 07:29 PMYes, you can (assuming you hold them in Sharesies).

Sharesies is a custodial service. You cannot do anything within Sharesies under your CSN. So he needs to exercise them via Sharesies OR transfer them out first, then exercise via your link or directly via Computersharer.

Great thank you

Quote from: Dolcile on Oct 11, 2024, 09:51 PMHi Basil.    In terms of Australia exposure, have you given much thought to an ASX200 index fund - as opposed to BRM?

Yes but I would prefer to buy assets at 84 cents on the dollar than full price.

Quote from: Basil on Oct 11, 2024, 08:33 PMIf NTA goes over 81 cents next week it's going to be really hard to resist buying even more warrants even though I have a truck load already.

Talk in the media today of a possible 75 bps OCR cut by the RBNZ in late November.  Makes sense to me seeing as the current rate of 4.75% is still very restrictive, the economy is extremely weak and RBNZ don't meet again for another review for 3 months after that.

Got to thinking today when the Reserve Bank of Australia (RBA) might start cutting.  Their rate is currently 4.35%, which perhaps explains why their economy is not completely in the toilet like our's, and they meet again to review it in early November.
https://www.rba.gov.au/

Despite the 50 bps cut this week by RBNZ and the possibility of a deeper 75 bps cut in late November, I still believe the Australian economy will easily outperform N.Z. for the foreseeable future.  Makes sense to have a sizeable portfolio allocation to Australia in my opinion.  My preferred exposure, (by quite some margin), is through the super high performing Discovery fund but that fund is now closed for further investment, so Barramundi is coming in for quite a lot of my attention.

I totally agree with you Basil, 95% of my Share market investments are offshore, 80% is in Aus.
Although this means getting up to speed with the FIF tax rules. I am sure you are up to play with this.
I research a lot but now a days 90% of my holdings are in funds like BRM rather than individual stocks, still much research is required even into these especially understanding the tax obligations.
I find the whole FIF tax rules bizarre and it took sometime to understand the pro's and con's of the rulings on each of my offshore investments.
One needs to get a good handle of these tax rules to fully understand their own net return positions.
Not wanting to go off topic to much but I find it is fascinating that one has a multiple choice option when applying the FIF tax rules as long as the one you choose is used for all your FIF investments in the same year.
BRM as a company/business are subject to the FIF rules however my understanding is this is all taken care of by the company and as individual investors BRM is treated as a PIE investments.
There is some notes on their website about this.       

Hi Snapiti, I'm similar to you, mainly invested offshore.  Except, mostly US rather than Australia. 

Kernel have a good guide to taxes here

https://www.myfiduciary.com/uploads/1/1/3/9/11394355/tax-paper_final-digital-v2.pdf

I'm 75% US, 10% NZ and 15% rest of world.   Looking at BRM for some tilt toward Australia. 

FIF is hard work eh Snapper. Yes Barramundi and Marlin are PIE's so there's absolutely nothing investors need to do in terms of their compliance requirements.  This saves investors spending thousands each year with their accountant, which by the way is fine with me because I hate that sort of work.

Hey Dolcile. S&P 500 at 21.4 times forward earnings looks a bit expensive to me but take out the magnificent 7 and the other 493 are in the mid teens so probably okay.  Are you in ETF's there?

Quote from: Dolcile on Oct 12, 2024, 07:20 AMHi Snapiti, I'm similar to you, mainly invested offshore.  Except, mostly US rather than Australia. 

Kernel have a good guide to taxes here

https://www.myfiduciary.com/uploads/1/1/3/9/11394355/tax-paper_final-digital-v2.pdf

I'm 75% US, 10% NZ and 15% rest of world.   Looking at BRM for some tilt toward Australia. 

Have a look at RF1 in Aus, I have a large holdings in this and the 5 years performance has been excellent, they are not exempt to the FIF tax rules however they pay their dividends with no franking credits so the 5% FIF tax rule is very handy in this case.

Quote from: Basil on Oct 12, 2024, 08:44 AMFIF is hard work eh Snapper. Yes Barramundi and Marlin are PIE's so there's absolutely nothing investors need to do in terms of their compliance requirements.  This saves investors spending thousands each year with their accountant, which by the way is fine with me because I hate that sort of work.

Hey Dolcile. S&P 500 at 21.4 times forward earnings looks a bit expensive to me but take out the magnificent 7 and the other 493 are in the mid teens so probably okay.  Are you in ETF's there?

yep I was struggling to understand all the different FIF tax rules and options, ended up paying my accountant to explain, money well spent.

Quote from: Basil on Oct 12, 2024, 08:44 AMHey Dolcile. S&P 500 at 21.4 times forward earnings looks a bit expensive to me but take out the magnificent 7 and the other 493 are in the mid teens so probably okay.  Are you in ETF's there?

Hey Basil.  No, my vehicle of choice is the Simplicity Global Share Fund.  I like it because:

1. It holds the shares directly, so the manager is able to claim a credit for any tax withheld on foreign dividends.  This is a major disadvantage of funds holding other funds (like some of the smartshares funds)
2. They are mostly passive other than the ESG exclusions
3. The management fee is a lowly 0.15% pa
4. The fund is largely the S&P500 (73% of the fund) but also has some other developed market exposure (Europe, Asia and Australia)
5. It's a PIE so all the tax is taken care of
6. There is a hedged and unhedged option

And pleasingly the returns have been great, 31.6% for the 12 months ending September. 

As for the P/E ratio.  I just want to own a good slice of the global market.  Plenty of active managers didn't invest in some of the M7 and their performance has really suffered.  I haven't done a comparison but I will make a not to compare the Simplicity GSF performance against Marlin. 

https://wealthmorning.us19.list-manage.com/track/click?u=9d259e9a2dd239d60b3e1798a&id=e8fc2fa920&e=4a7e0bd097

Another perspective on Tax on Global Shares

Thanks Dolcile that looks like an interesting option.  Certainly, the fee level for a PIE is very low and will save a lot of people doing complicated FIF calculations themselves or more likely paying their accountant thousands.   On their website the return to 30 Sept (I have chosen their unhedged fund as I want to eliminate exchange rate gains from my consideration, is showing as 26.28% after their fees but before tax.  I just looked into it anmd it was 25.19% after fees and tax.   Very good but no 5 year history to work off as it's a new player in that field starting in April 2023.

By comparison the Smart shares total world fund is up 20.27% over that tiemframe https://www.smartinvest.co.nz/funds-and-performance/etfs/international-shares/smart-total-world-etf  I tend to focus a lot on the 5 year performance because to me that gives a better idea of across the cycle returns, although in recent times that encapsulates a lot of the Covid era headwinds.  I see the TWF is 10.13% after fees and tax per annum, average over 5 years.

Yes, it's been a great year for international equities but that 5 year average return of about 10% is probably about where I think investors should set their expectations going forward.  Simplicity does look like an attractive way to quite simply and very cost effectively diversify one's portfolio.  I might throw them a bone in due course.  I've been very disappointed with Marlin lately, (I have very recently sold out), and not sure how they seem to pick and keep holding losers and manage to "successfully" avoid picking Nvidia to name just one stellar performer.  Marlin is also a very poorly diversified fund.
Returns over the last few months and last year for that matter have been very disappointing and well below what you have been enjoying.  Even their 5 year performance is just below the total world fund smart share so there is no longer any evidence, (there used to be), over the medium term they can out pick the market.  I'm not sure I really rate Sam Dickie.  Anyway, leaving that debate aside as to whether Marlin add's any value, (I used to believe on the available evidence a year ago they did), there is no argument that the Simplicity fund or the Total world fund offers vastly better diversification and therefore lower risk.

Thankfully Barramundi is a different kettle of fish, (sorry couldn't resist the pun), and they have easily beaten their benchmark over the last 5 years, which is my standard timeframe scope of reference for all shares and funds.
https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Monthly-Update-September-2024.pdf
Robbie Urquarts performance speaks for itself and buying their long-term outperformance at a ~ 16% discount to NTA seems like a truly compelling opportunity to me which is why I have well and truly backed the truck up on their warrants.

Hey Basil, 

Picking up on your 5 year point.  I think the track record of returns is more relevant (and I'd argue you need longer) when considering managers that are actively picking stocks. 

For passive, globally diversified funds - even without 5 years of data - as long as I understand the benchmark/index that they are tracking, I'm happy to invest and take the average market return. Provided of course that the management fees are low and the fund structure is tax efficient. 

The data shows that over a 30 year period less than 1% if active managers outperform the index.  And because my investing horizon is (hopefully) 50 years for myself and another 90-100 (hopefully) for my young children, I'm happy with the long term average market return. 


Regarding BRM, later tonight I am going to have a look at 15-20 years of their returns v the index to see if they really have been able to outperform over a sustain period - after expenses and management fees. I'll post the results. 

Separately, I did notice last night that the share price discount to NAV was around 15% for quite a sustain period between 2010-2013, I'm not sure why that was, but who's to say that won't happen again?

Also, just regarding the "new player"
comment.  Whilst your are correct that the GSF has only be around since April 2013, Simplicity has been in operation since 2016. 

Also another benefit of the Simplicity fund is that there is no Buy / Sell spread so you aren't getting pinged on each transaction. 

Fair enough...I hear what you are saying.  With Barramundi long term performance, you can skew the results any way you like depending on the timeframe.  The problem is they listed the fund right towards the start of the GFC so the fund initially got hammered.  If you look at long term performance post GFC, I think they have done very well.  They had a different fund manager back in 2010 and I think it took the market a long time to get over the initial period of underperformance of the fund during the GFC...probably a lack of confidence in the early 2010's is why the discount was that high back then.

I think Robbie Urquart has done very well since he was appointed, about 5-6 years ago from memory.  I'm happy to stick with my standard 5 year timeframe because that encapsulates a lot of the very difficult trading since the pandemic hit nearly 5 years ago.  11.8% average annual return after all fees and tax since then is a very credible performance given the significant headwinds over that period and is 3% higher than the benchmark.

Agree 100%, Simplicity is very simple and cost effective.  Also, no charges on transfers between the funds and you can set up regular withdrawals, (like for example the FF group 2% per quarter). 

Totally agree, thanks for the background on BRM.   I'll have a bit more of a look tonight. 

Quote from: Dolcile on Oct 12, 2024, 01:33 PMTotally agree, thanks for the background on BRM.  I'll have a bit more of a look tonight. 

save yourself sometime. have a look at page 9 of the 2024 annual report, shows Barramundi's performance versus the 5 year benchmark and shows the history of total returns.
Beagle is right when he says the SP got hammered due to the 2009 GFC.
I am a very happy holder, since buying I have received 6cps tax paid divi and the NAV has gone from 68 to 80cps on top of that

https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Annual-Report-2024.pdf

Well said Snapper.  Going forward as I get tired of number crunching I need to focus on what's going to give me a good feed in my retirement years.

Buying BRM at a 16% discount to NTA, I calculate the effective yield to me, (and I think 2% tax free per quarter is sustainable, certainly has been post GFC)  as follows.  8% / 0.84 = 9.5238% tax free.  I take shares in lieu of dividend at a 3% discount so that return becomes 9.5238 / 0.97 = 9.818% tax free.  The net value of free warrants issued from time to time are on top of that which sometimes are valuable so let's just round that 9.818% return up to 10% tax free for the sake of...you guessed it, simplicity.  10% tax free is worth ~ 15% gross to me on 33% tax rate.
The last time I bought shares on a 15% gross return was HLG in 2016 at $2.75.  Ask me how that's worked out over the years  ;D
What follows is a full list of other companies on the NZX that are capable of paying me what's proven over time to be a sustainable 15% gross return.



That's right, there isn't a single other one.  Beagle is a simple dividend hound dog that likes to be very well fed.

I like it Basil. 

Maybe another way to look at it, is by gazing at the accumulated reserves in the latest accounts.   This shows profit each year minus gross dividends (accumulated since establishment).  The balance at June 2024 is -$135,000 (I.e. trivial), which suggests to me that since inception the 8% of NAV dividend has been sustainable. 

Any disagreement with that thought process?

Quote from: Dolcile on Oct 11, 2024, 12:48 PMDoes anyone know if you can exercises the warrants via Sharesies?

You can exercise the warrants via Sharesies from today.

Quote from: THESTG on Oct 14, 2024, 03:53 PMYou can exercise the warrants via Sharesies from today.

Very easy to exercise....took less than 20 seconds.

This might be a rookie comment but if I was BRM I'd take all the warrant money flooding in at the moment and buying everything on the sell side till they run out of money. I'm assuming they can do that? I know they can't run buybacks in times like DRP price calc periods etc so just curious..

They usually invest the proceeds into their existing portfolio.  I'd like to see them broaden the scope of their portfolio with some fresh ideas and value buys.
NTA as at close of trade yesterday, (fair bit of green on the screen today already which is on top of that), was 80.56 cps.
You can exercise your warrants here https://www.warrants.co.nz/Barramundi/Application

exercised my truck load of warrents today, website link could not have made it easier, well done Barramundi

I need to wait until Wednesday next week, (their online warrant exercise system updates your holding eligibility number each Tuesday night), because I have bought even more.  It's like eating at an all you can eat gourmet buffet restaurant at McDonald's pricing...I just can't help myself being a glutinous Beagle.  Hope I don't throw up from overeating lol

Basil what have you got the NAV at end of week?

Quote from: Basil on Oct 15, 2024, 01:20 PMThey usually invest the proceeds into their existing portfolio.  I'd like to see them broaden the scope of their portfolio with some fresh ideas and value buys.
NTA as at close of trade yesterday, (fair bit of green on the screen today already which is on top of that), was 80.56 cps.
You can exercise your warrants here https://www.warrants.co.nz/Barramundi/Application

exercising all those warrent you have is going to dilute my holdings.......lol

LOL sorry Snapper.
Closing NTA estimate is 80.24 cps Dolcile.

emptied the bank account today for my stack of warrants, can not let the hound dilute my position to much, goona be interesting to see the uptake % given SP is not that much above warrant exercise price but well below NAV, I still think 80% uptake is on the card

Quote from: snapiti on Oct 21, 2024, 06:49 PMI still think 80% uptake is on the card

Does that mean unwanted warrants get dumped on the last day of trading?

I suck at picking individual shares, so I'm looking for opportunities to diversify.

Quote from: bulltrap on Oct 21, 2024, 08:57 PMDoes that mean unwanted warrants get dumped on the last day of trading?

I suck at picking individual shares, so I'm looking for opportunities to diversify.

Yep. Any warrants you are allocated that are not exercised, or sold before end of last trading day, simply lapse. Cease to exist.

Quote from: Untamed on Oct 21, 2024, 09:05 PMYep. Any warrants you are allocated that are not exercised, or sold before end of last trading day, simply lapse. Cease to exist.

Nice, I might put in a lowball bid on Wednesday in case there's a hot-potato-fire-sale type situation.

With JardenDirect, I won't save on brokerage though, as that's the same $29.90 for the warrants as it would be for the units (under $15K worth anyway).

Sharesies is actually a good deal for brokerage in this case. You pay just 1.9% of the cost of the warrants, and to exercise their Warrants and options (https://intercom.help/sharesies/en/articles/5325990-warrants-and-options) help page says only a currency exchange fee could apply. The downside is you have to pre-fund your wallet for the exercise, and the warrants units presumably stay in Sharesies' custody.

Quote from: snapiti on Oct 21, 2024, 06:49 PMemptied the bank account today for my stack of warrants, can not let the hound dilute my position to much, goona be interesting to see the uptake % given SP is not that much above warrant exercise price but well below NAV, I still think 80% uptake is on the card

Likewise. I'm all in.

Wise tech, one of their larger Holdings had a very bad day yesterday but NTA still above 80 cents at ASX close yesterday. 80.15 cps.
Good to see plenty of astute holders on here exercising their warrants.

Because of lately trades it could take a while before the acceptance form shows the correct number.
Does anybody know if it is ok to send money BEFORE filling out the acceptance form?
Online transactions have a $-limit, so may need to break it down into a few daily chunks.

You can pay all the chunks at once. It is not a daily limit.

Quote from: 777 on Oct 22, 2024, 09:43 AMYou can pay all the chunks at once. It is not a daily limit.

I think he means his bank has a daily limit on online transactions.

Most banks have daily limits on internet banking, for example BNZ is $50,000.  If you are paying more than this you have two options. Visit your local bank branch with appropriate identification and get them to do it or phone your bank and temporarily increase your daily limit, (which is what I plan to do).

Quote from: Basil on Oct 22, 2024, 10:16 AMost banks have daily limits on internet banking, for example BNZ is $50,000.  If you are paying more than this you have two options. Visit your local bank branch with appropriate identification and get them to do it or phone your bank and temporarily in

When the lights start to flicker, I'll know your transaction is going through.....!!   ;)  ;D

I am with the ANZ. Arranged, at sometime, for a $100,000 limit. If I want to make a larger payment I simply make two or more payments. It has always worked. For some reason using the App, on my phone, there is a $10,000 limit but I can still make multiple payments if needing to.

when I do a transaction over 100k a 0800 number comes up, all I need to do is call this and verify with the operator it was me doing the transaction......easy peasy.....perhaps the hound will forget to put the payment through for the warrants and I won't get to much dilution

LOL Hoping the hound will overlook applying to get a huge dividend feed each quarter going forward, ROFL, that was a good one mate. 

Quote from: snapiti on Oct 22, 2024, 06:15 PMwhen I do a transaction over 100k a 0800 number comes up, all I need to do is call this and verify with the operator it was me doing the transaction......easy peasy.....

Good to know.....never got to that level (yet!).  ;)

Quote from: bulltrap on Oct 21, 2024, 11:24 PMNice, I might put in a lowball bid on Wednesday in case there's a hot-potato-fire-sale type situation.

Done, on board via BRMWH @1.7c at final close. Quite relaxed auction, no dumping or sniping.

Uptake should be very high. Dilution and the WiseTech tabloid scandal will soon be forgotten.

Great buying

anyone want to have a quess at % of warrant conversion......me thinks 85%

I reckon 77%.

Quote from: snapiti on Oct 24, 2024, 05:23 AManyone want to have a quess at % of warrant conversion......me thinks 85%

96%

Combining info (https://barramundi.co.nz/investor-centre/capital-management-strategies/#Warrants) on the last five warrants, with the BRM close price on exercise date (or today for BRMWH):

(https://dl.imgdrop.io/file/aed8b140-8472-4813-922b-7ce35ef93c9e/2024/10/23/BRM-Warrant-Uptakee3997c082436fea6.png)

Looking at the discount to NAV rather than BRM price:

(https://dl.imgdrop.io/file/aed8b140-8472-4813-922b-7ce35ef93c9e/2024/10/23/BRM-Warrant-Uptake-NAVc6f212d559a19930.png)

By both measures, BRMWE was similar, and it had a 74% uptake.

I'll guess a bit higher, let's say 80%.

 >:(

Tried to exercise my warrants via the form (https://www.warrants.co.nz/Barramundi/Application) (which took some digging to find), but apparently you can only exercise warrants cleared by close of the preceding Tuesday.

The only advice the web form gives is to email them to 'query this restriction'.

Given that procedural restriction, they really should've ceased trading last Friday, so the CSNs and balances would be up-to-date with final balances on Wednesday, which would give three days to exercise by Friday.

What a shambles.

https://www.smh.com.au/technology/richard-white-steps-down-as-wisetech-ceo-20241024-p5kl6j.html

9% of BRM holding

Wisetech down 25% in one month

Maybe best time to buy Wisetech😊

yes interesting timing for BRM - they have a lot of warrant cash that needs a home....

OK, I sent them the dollars and emailed them the details. Trust they'll get it sorted out. They'll have a busy weekend ahead.

Assuming 80% uptake, they'll get right on $35M of new funds. At most around $10M of that can be spent on the announced buyback (https://barramundi.co.nz/documents/dividends-warrants/corpact-brm-brm-announces-continuation-of-share-buyback-programme-429513.pdf).

So yep, they'll be going shopping.

thanks bull trap, I think the warrant offering is a total croc of shit, in reality, as the fund pays out all of it's gains in divi's, the only way the fund can grow so the managers can keep increasing their feed from the trough is by DRIP and by poeple exercising warrants.
Really disappointed new holders can buy truck loads of warrants that allows them head shares that will be highly dilutionary to existing SH.
Does anyone know what happens to he shares in the buy back program, are they cancelled or held as stock to be feed back to us in the DRIP program.

Quote from: snapiti on Oct 25, 2024, 05:27 AM... I think the warrant offering is a total croc of shit, in reality, as the fund pays out all of it's gains in divi's, the only way the fund can grow so the managers can keep increasing their feed from the trough is by DRIP and by poeple exercising warrants.

I agree. I found this post from Alokdhir on the other channel  helpful.

I'm happy I've shunned this type of 'investment'. Having real shares in FPH and IFT over the last 2 yrs has proven much more rewarding.

"If one such person had 100K BRM before warrants issue ...he got 25000 so called free warrants ...his original holding value was 100K x NAV

After 100% exercise rate ( assumed for ease of calculations to show result ) if he doesnt exercise them ...his value of holdings become 100K x post exercise diluted NAV ...which is always less then pre exercise NAV by a factor decided by difference in exercise price and current NAV ...bigger the difference more the dilution . Thus his value of holdings decreases after this warrant issue ...One is supposed to recover this reduced value from sale of warrants but that can get murky when SP discount widens towards exercise date ...which normally happens ...thus such holders end up subsidising new entrants .

Current scenario to illustrate above ...assuming NAV didnt change during the period for ease

Pre warrant NAV 80 Cents ...offer / exercise price 63 Cents / Conversion rate 100% / Post warrant NAV 76.6 Cents ...reduction of 3.4Cents

Wealth loss of 100K holder who doesnt want to exercise his warrants = 100K x 3.4 = $ 3400

To recover this loss he need to sell his 25K warrants for $ 3400 ie = 13.6 Cents each

Current issue it was impossible to sell warrants at price to recover loss of wealth of original holding due to dilution post exercise ...due to widening discount to NAV

In reality NAV changes during issue and post issue etc which makes it very difficult to exactly pinpoint this shortcoming of warrants ...

Main point being warrants are not FREE ...they are equivalent to post exercise reduction in value of one's original holdings" (and a way for the funds to 'grow' by  regular cap raises.)

thanks for supplying this, I like the company structure for tax purposes and exposure to ASX investments, they have provided a consistent 8% net return, however I have decided I will decrease my holdings over the next few months, mainly because they make up 30% of my investment allocations and I want to lower this because of the unfavorable way the warrants operate for existing holders

I'm going to take the other side of this argument and note that regular warrant issues have been a feature of Barramundi Limited since it listed with the first one issued in 2007 so shareholders have had every opportunity to previously appraise themselves of the characteristics of these financial instruments and the effects on the shares.  Additionally, the full warrant terms are laid out in a comprehensive manner in the warrant terms and conditions booklet that every shareholder is provided with.  I noted at the last BRM annual meeting I attended, there was widespread support for the ongoing warrant program from a broad range of investors.

Buying warrants in addition to the ones you are allocated for free, confer upon the warrant holder an option to further increase their shareholding at a fixed future price and therefore provide considerable optionality around the size of one's holdings in the future.  Further, there can be significant leverage with warrants in a rising market and additionally, one can materially reduce their downside risk with buying warrants and selling the commensurate number of head shares.

I like them and exercised all of my warrants this morning.

P.S. Very strong BounceBack for Wisetech today and a big move by Resmed too. 

Quote from: snapiti on Oct 25, 2024, 05:27 AMReally disappointed new holders can buy truck loads of warrants that allows them head shares that will be highly dilutionary to existing SH.

Does anyone know what happens to he shares in the buy back program, are they cancelled or held as stock to be feed back to us in the DRIP program.

Not sure the dilution is all that bad. In theory, the dilution loss should be captured in the value of the warrants. In practice, there was plenty of opportunity during the year to sell the warrants at 4c-7c, which should cover it. That's not ideally suited as a completely passive investment, but you're probably OK as long as you don't let the warrants lapse.

The unit price has been remarkably stable over time. I suppose that's by design, and the warrants are part of it. That suggests existing shareholders likely paid about the same as I'm paying now, fair enough.

Looking into the buyback, they say here (https://barramundi.co.nz/investor-centre/capital-management-strategies/#Share-Buybacks):

QuoteShares purchased under the policy are held as treasury stock and are available to be utilised under the dividend reinvestment plan, to the extent permitted by law.

From balance sheet footnotes in the 2024 Annual Report (https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Annual-Report-2024.pdf), the bulk of the DRP was new issues, and only 283K treasury shares carried into 2025. Depends on the size of the buyback I suppose.

Closing NTA as at close of trading on the ASX today, bang on 79.0 cents by my calculations.

can anyone tell me what day the new shares are issued (can't find my email with the info)

Allotment of shares on exercise of warrants – Date Change
Please note, for those exercising their warrants, the date for the allotment of Barramundi shares on the exercise of BRMWH warrants, will be changed from 30 October 2024 to 31 October 2024, to allow for the Labour Day public holiday on Monday, 28 October 2024.

Quote from: snapiti on Oct 25, 2024, 05:27 AMDoes anyone know what happens to he shares in the buy back program, are they cancelled or held as stock to be feed back to us in the DRIP program.

Overlooked this part of your post the other day.  I believe shares bought in the buyback are held as Treasury stock for issuance under the DRIP program.
I am a little surprised you have gotten so down on the warrant thing mate.  You bought heaps of them so it's not like you haven't well and truly taken advantage of the situation yourself, possibly well in excess of the average Barramundi shareholder.  The modest NTA dilutionary effect of warrant exercise has been well known, forever and a day.  Not worth getting down on it just because some dog had a slightly bigger bite on the warrant bone.    As Theodore Rosevelt famously said, "Comparison is the thief of joy"  Remember that famous quote mate, it will serve you well in life.  I have another way of saying it when out in my boat and come across a bigger boat or a superyacht.  Beagle's quotable quote, "there's always someone with a bigger boat"

Anyway...leaving that aside, a good day on the ASX for BRM's portfolio with NTA at 79.40 cps by my spreadsheet calculations.  I'm looking forward to the annual meeting on Wednesday 10.30 at the usual place and a good lunch afterwards and then it's on to the next annual meeting for the day, (HGH) at 2.00 p.m.. with some barking to be done there.  I hope to see other shareholders I know at these annual meetings too.

Quote from: Basil on Oct 28, 2024, 06:44 PMOverlooked this part of your post the other day.  I believe shares bought in the buyback are held as Treasury stock for issuance under the DRIP program.
I am a little surprised you have gotten so down on the warrant thing mate.  You bought heaps of them so it's not like you haven't well and truly taken advantage of the situation yourself, possibly well in excess of the average Barramundi shareholder.  The modest NTA dilutionary effect of warrant exercise has been well known, forever and a day.  Not worth getting down on it just because some dog had a slightly bigger bite on the warrant bone.    As Theodore Rosevelt famously said, "Comparison is the thief of joy"  Remember that famous quote mate, it will serve you well in life.  I have another way of saying it when out in my boat and come across a bigger boat or a superyacht.  Beagle's quotable quote, "there's always someone with a bigger boat"

Anyway...leaving that aside, a good day on the ASX for BRM's portfolio with NTA at 79.40 cps by my spreadsheet calculations.  I'm looking forward to the annual meeting on Wednesday 10.30 at the usual place and a good lunch afterwards and then it's on to the next annual meeting for the day, (HGH) at 2.00 p.m.. with some barking to be done there.  I hope to see other shareholders I know at these annual meetings too.

I like your quote, very soothing.......yep the warrants played out well for me.

I was going to get along to the AGM today but Metallica pre-sale was much more important. Now that I have secured my 4 tickets I'd be keen to know if anything interesting was discussed at the AGM?

With the announcement that exercise of warrants is at 60+% (unless that number changes)
the NAV dilution should be only ~2.1c

They updated that to 70%.

Must have forgotten Basil's.

Wow! That is a lot of people forgetting they have warrants in the bottom drawer.

On reflection, I can see one needs a sizeable holding to cover the selling costs.

Seems to be holding firm at $0.69 with dilution broadly known.

So warrants just easy money at $0.63

Quote from: 777 on Oct 30, 2024, 12:54 PMThey updated that to 70%.

Must have forgotten Basil's.

LOL It wasn't that big.  Just back from the BRM / HGH annual meeting duo today and then drinks and dinner with friends afterwards.  Big day.  Much happier with this than with Heartland and my relative shareholding size in the two reflects that.  More to come tomorrow.

50,119,078 warrants out of a possible 69,484,210 warrants (72.13%) were converted into Barramundi ordinary shares.

That gives them about $31m to invest.

My suggestion at the annual meeting was that it makes far more common sense to ramp up the intensity of your buy-back program than invest this money into more shares of companies they already own.  I gathered from their response this might be food for thought for their next board meeting.

Quote from: Basil on Oct 31, 2024, 12:41 PM50,119,078 warrants out of a possible 69,484,210 warrants (72.13%) were converted into Barramundi ordinary shares.

That gives them about $31m to invest.

My suggestion at the annual meeting was that it makes far more common sense to ramp up the intensity of your buy-back program than invest this money into more shares of companies they already own.  I gathered from their response this might be food for thought for their next board meeting.

they might have been giving you lip service beagle, I am fairly sure under the companies constitution that the buy back program can not be a price setter, basically they can only buy on market a certain % of any days volume, watching their buy back in action this would appear to be 25 to 30% of the volume on anyone day

Fair comment mate.  They did say they didn't plan on making any immediate changes.

Quote from: Basil on Oct 31, 2024, 12:41 PM50,119,078 warrants out of a possible 69,484,210 warrants (72.13%) were converted into Barramundi ordinary shares.

That gives them about $31m to invest.

My suggestion at the annual meeting was that it makes far more common sense to ramp up the intensity of your buy-back program than invest this money into more shares of companies they already own.  I gathered from their response this might be food for thought for their next board meeting.

Why earn $0.63 a share to pay $0.69 for another. makes no sense to me.

From a conceptual point of view I agree but the issue is they have money to invest because warrants were issued over a year ago.  What makes no sense is what they normally do with warrant exercise proceeds and that's apply the money to buying more Australian shares in the ratio in which the portfolio is already allocated, effectively paying $31m for $31m of assets when shares could be bought back at a substantial discount to NAV.

Or invest in new companies

Error

Quote from: Basil on Oct 31, 2024, 05:07 PMFrom a conceptual point of view I agree but the issue is they have money to invest because warrants were issued over a year ago.  What makes no sense is what they normally do with warrant exercise proceeds and that's apply the money to buying more Australian shares in the ratio in which the portfolio is already allocated, effectively paying $31m for $31m of assets when shares could be bought back at a substantial discount to NAV.

Maybe that $31m is at a discount to NAV for those shares.

Decade high 15% discount to NTA just announced.  8% net yield becomes 8 / 0.85 = 9.41% Net when buying at a 15% discount.  That becomes 9.41% / 0.97 = 9.701% net when taking the 3% shares in lieu of dividend discount.
9.701% net is worth 9.701 / 0.67 = 14.48% gross for 33% taxpayers.  Its paid quarterly so you get the effective rate of 14.48% / 4 = 3.62% gross per quarter.  3.62% per quarter compounded for 4 quarters = 15.29% per annum on an annualized basis.  The value of free warrants issued from time to time are additional to that.  Opportunity knocks, you be the judge, I already have heaps.
https://api.nzx.com/public/announcement/441467/attachment/431384/441467-431384.pdf
On average over the last 5 years they have beaten their reference index after their fees and tax.

NAV increased nicely from 77.28 cps as at close of trade on Wednesday, confirmed by BRM on Thursday, to 78.11 cps as at close of trade on ASX today.
Happy to maintain a very high portfolio allocation and added a few more to it yesterday.  Continues to trade around a decade high discount to NTA.

Quote from: Basil on Nov 08, 2024, 06:47 PMNAV increased nicely from 77.28 cps as at close of trade on Wednesday, confirmed by BRM on Thursday, to 78.11 cps as at close of trade on ASX today.
Happy to maintain a very high portfolio allocation and added a few more to it yesterday.  Continues to trade around a decade high discount to NTA.

thanks for the update Basil, only took 10 days to claw back dilution from warrants, plenty in the kitty to continue to pay out divi's......not long to go now for another divi as well, a very solid performer, due to my warrent uptake I am very overwieght BRM but won't sell any with the discount to NAV so unusually high, happy to collect Divy

I think some level of discount is warranted if you assume they perform inline with the market going forward. The discount does seem steep though. I dipped my toe in with some warrants and have been meaning to try do a proper analysis, I think making comparisons to the NTA discounts of ASX listed LICs could be a worthwhile exercise. I did some calculations before I bought the warrants that showed the discount can more than overcome the drag of the management fee in certain circumstances.

Over my standard 5 year timeframe, (not making an exception for any company or fund), adjusted NAV is up 12.2% per annum, (this is after fees), gross before fees is 14.9% per annum and the benchmark is 9.0% per annum, see page 2.  They have outperformed by an average of 3.2% per annum after fees over the last 5 years.  https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Newsletter-September-2024.pdf
With significant average outperformance like that is any discount to NAV warranted ?

If you're going to make comparisons with overseas funds in terms of their discount to NAV, you need to find funds which have outperformed their benchmark after fees by a similar amount on average over the same timeframe. 

78.70 cps.

79.01 cps.  Let's see how well my spreadsheet modeling is working when they announce NAV tomorrow.  My model does not take into account exchange rat differences so will always be a little bit different to exact NAV.

I asked Robbie Urquart the investment manager about Xero and Wisetech at the annual meeting.  He was very confident in his conviction about holding notwithstanding the very elevated PE's.
XRO up about more than 10% since the annual meeting.
Today's presentation is here https://research.iress.com.au/IDS/old/20241114/02880514.pdf?uid=8DEB10C0DF3BDE97C31E95DDFE8699426E7900009E158D047045E640093D250091850000&ppv=

Quote from: Basil on Nov 13, 2024, 09:07 PM79.01 cps.  Let's see how well my spreadsheet modeling is working when they announce NAV tomorrow.  My model does not take into account exchange rat differences so will always be a little bit different to exact NAV.

Slightly high but not too bad.

.7875

To be honest about it, I wasn't all that happy about being as much as a ~ quarter of a cent out so thinking about the most logical explanation I put it down to two things, firstly exchange rate differences my model does not account for but secondly, they may not have invested all the cash raised in the warrant issue yet especially after I encouraged the board at the recent annual meeting to step up their share buyback program.  Basically, I said what's the point in buying more shares across your portfolio at full price when you can buy your own shares back at a decade high discount to NTA of about 15% which is far more value accretive to shareholders.  I also suggested to Robbie Urquart in the meeting that Wisetech and Xero are on super high PE's and maybe time to take some profits?  He didn't agree, explained why and I see both are up significantly since the ASM so that's served as a timely hubris check that I don't have all the answers lol

Anyway, I regauged the baseline on my spreadsheet to eradicate out last week's error and the current estimated NTA as at close of the ASX today has shown a healthy improvement in the last 2 days from 78.75 cps to 79.62 cps, assuming they've reinvested all warrant proceeds across the portfolio already which, as noted above, may not be the case.  Updated discount to NTA at 68 cents is 14.6%.  Very cheap exposure to the ASX in my opinion.  Holding heaps and looking forward to next month's quarterly dividend in time for Christmas.  Very nice to see NTA back very close to 80 cents so soon after the warrant exercise.  Happy days. :)

Can someone help me understand this...

Type ASX200 into google and it provides a chart that shows the ASX200 index has delivered 17.38% for the last 12 months.

I do the same for BRM, and the result is -1.45%.   

That's a difference of nearly 19%.

Add that BRM has paid a ~8% dividend, so that's about an 11% gap.

The NZD has depreciated about 1.5% over the period, so there is part of it.

Why is there such a difference ?

Quote from: Dolcile on Nov 16, 2024, 04:57 PMType ASX200 into google and it provides a chart that shows the ASX200 index has delivered 17.38% for the last 12 months.

Thanks for your question.
That's correct but please note as an interesting anecdote, year to date from 1 January the ASX200 is up just over 8%.

Quote from: Dolcile on Nov 16, 2024, 04:57 PMI do the same for BRM, and the result is -1.45%.   

The share price a year ago was 69 cents, on 9/11/23 the NAV was 69.76cps and it traded at just a 1% discount to NAV, and it closed yesterday at 68 cents a 14.6% discount to NAV as per my calculations. 

The total difference per google is 18.83% 17.38% positive on one hand and 1.45% negative on the other.
8% of the difference is accounted for with dividends as you mentioned leaving another 10.83% difference.  This is more than accounted for with the change in the discount level BRM shares are currently trading at.  Was 1% a year ago and current discount is 14.6%, a difference of 13.6%.

NAV has actually increased from 69.76 cps to 79.62 cps a 14.1% gain over the last year despite paying 8% in dividends, total gain 22.1% plus conferring gains in the warrants too.  In effect The NAV of Barramundi has increased 14.1% + 8% dividends = 22.1% and has outperformed the ASX200 by 22.1% - 17.38% = 4.72% fund outperformance after BRM management fees and tax + the warrant accretion value.

Google is picking up the share price movement only, 69 cents to 68 cents = 1.45% decline, not the NAV gain, the dividends paid or the value accrual through the warrants.  It's also not picking up the huge change in the discount level the shares are trading at.

The discount to NAV as mentioned above, is at a decade high and has moved from 1% last year to 14.6% currently.  This is exactly why I have been pointing out that the fund is a remarkable buy at this level.  You have a fund that has comprehensively beaten the ASSX200 in the last year, and over the long term, 5 years has also soundly beaten it.  It's a PIE with wonderful tax-free dividends and is trading at a totally underserved decade high discount to NAV.  I'd be buying like crazy if I hadn't backed the truck up already.   

I've deliberately said the same thing several ways above, so hopefully one of those paragraphs resonates and makes sense to you and others.
You might be wondering what is a normal level of discount to NAV the shares trade at ? I've done a ten-year study on BRM and found the average discount to NAV over 120 monthly measurement points was 0.6%.  We're probably 5 standard deviations away from that at present with the 14.6% discount and that's at 68 cents and there are plenty on offer there. 

Thanks Basil, the discount to NAV explains it.  I hadn't thought of that. 

Now to scrape together some coins to buy a few. 

Monthly update says they've reduced their weighting of Wisetech

https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Monthly-Update-November-2024.pdf
1 year adjusted NAV return after fees 29.7% to 31 October, Index 26.2%.
NAV at end of month 76 cents, discount 11%, current NAV over 79 cents but share price still the same, go figure?  Maybe those buying warrants at 2 cents and exercising them, effective entry price 65 cents, profit taking?
With performance like that and a 14-15% discount to NTA, (a decade high), I talked myself into buying more lol

nice divi just around the corner too

Quote from: winner (n) on Nov 18, 2024, 09:38 AMMonthly update says they've reduced their weighting of Wisetech

I wonder if that was just because of the extra funds in the kitty due to the warrant uptake (that would have diluted holdings)

Quote from: snapiti on Nov 18, 2024, 03:03 PMI wonder if that was just because of the extra funds in the kitty due to the warrant uptake (that would have diluted holdings)

When it's written like this I'd say they purposely reduced their holdings / weighting. ....probably after Basil told him to do so lol

IMG_5983.jpeg

Lol mate. Not that influential by any stretch of the imagination. Robbie did mention in the meeting that they had trimmed Wisetech a bit.

Quote from: Basil on Nov 18, 2024, 03:55 PMLol mate. Not that influential by any stretch of the imagination. Robbie did mention in the meeting that they had trimmed Wisetech a bit.

Hope he didn't sell when it got down to 10 bucks seeing its back to over13 bucks and heading to 14 bucks

Gang patch ban day. I better take off my BRM patch and only wear it in private

Latest NTA nearly 80 cents at 79.68 cps.  Decade high discount to NTA of 15%
https://api.nzx.com/public/announcement/442392/attachment/432510/442392-432510.pdf
Disc: I bought more yesterday at 68 cents and am on the bid for even more at that level today.

About time to announce the 1.54c dividend - what takes them so long??

You're quite right a December quarter announcement is due.  The December dividend was announced on 20 Nov last year, 17 Nov the year before and 22 Nov in 2021.  Last year it went ex-divvy entitlement on 30 Nov, with payment on 15 December, well in time for Christmas shopping.  Expect a Dec divvy announcement any day now.

Quote from: sideline on Nov 21, 2024, 02:18 PMAbout time to announce the 1.54c dividend - what takes them so long??

I got 1.56c divvy in my AI (almost intelligent) spreadsheet.

You were right - i have to review how it's calculated.
However I see in the announcement from today - 21 Nov 2024 - that the Ex-date
is supposed to be 4 Nov 2024?? I can see a 'correction' coming up.....

1.56c it is
https://www.nzx.com/announcements/442404 (https://www.nzx.com/announcements/442404)

Quote from: thedabsman on Nov 21, 2024, 03:41 PMI got 1.56c divvy in my AI (almost intelligent) spreadsheet.

This AI has become hyperreal

https://api.nzx.com/public/announcement/442408/attachment/432536/442408-432536.pdf
Amended notice. 
Hard to believe there were plenty of sellers at 68 cents today, a decade high discount of 15% to NTA.
This for a fund that was up 29% in the year to 31 October 2024, beat the ASX handsomely over that timeframe, has a proven 5 year history of beating the index and NTA is up a further 4.3% month to date in November and trades cum a nice 1.56 tax free Christmas quarterly dividend.  Whatever does one do ? I know the answer.  Surprise, surprise, the answer is to keep buying lol
Barramundi's month to date performance in November is even ahead of the extremely well-regarded Discovery fund, how good is that!!

yes SP performance compared to NAV is disappointing but only matters if you are selling, what is important is the NAV is rising and I get a heap of cheap shares in the DRP

Quote from: sideline on Nov 21, 2024, 04:09 PMYou were right - i have to review how it's calculated.
However I see in the announcement from today - 21 Nov 2024 - that the Ex-date
is supposed to be 4 Nov 2024?? I can see a 'correction' coming up.....

I think the last decimal point is impossible to know as we dont know the exact NTA. 1.53 - 1.56 is about as accurate as you could be. I am loving the high NTA and low share price for the divvy payments. Just as long as you dont need to sell at present

Basil, a lot of green on my BRM watchlist today  :)

AUD strong as well over the last few days, we might see 80cps NAV this week......apart from that selling should dry up and buying increase for a while with many wanting to collect the divi x on the 4th December

Quote from: snapiti on Nov 25, 2024, 03:31 PMAUD strong as well over the last few days, we might see 80cps NAV this week......apart from that selling should dry up and buying increase for a while with many wanting to collect the divi x on the 4th December

Oh a divvy as well. Collect rights at $0.63. Today trading at $0.71 and $0.0156 divi to come. Cant complain!

Basil, when you care to do it next, could you update us on your estimate NAV? Seems like a few good days on the ASX.

Hey Dolcile,

Wisetech got hammered down about 12% last week, from memory it was Friday so as at last Friday NTA was just on 79 cents down a bit from that reported on Thursday of 79.68 cps (as of close of trading last Wednesday).

By yesterday's closing NTA by my estimate was 79.4 cps.  I'm reluctant to post today's closing estimated NTA number because for reasons unknown I have been out by as much as a third of a cent in recent weeks and the correct figure will be published tomorrow anyway.  On a brief overview of their portfolio today I doubt there has been much movement from last week's NTA.

The share price is up a bit because it was at a ridiculous decade high 14% discount to NTA and by my reckoning that's closed a little bit in the last week, presently around about 11-12%.  Actual NTA figure out tomorrow.  Sorry, I've been flat out trying to buy more Turners. It's been hard work trying to get many.

Aah so it's you that has completely wiped out the Turners sell side  :o


Thanks for your comments on BRM. 

Not me at all unfortunately.  I've been out on my boat for the last 2 days.  Just got back last night and reviewed everything in detail including Craigs and Forsyth Barr reports this afternoon and then tried to get some more...too late, hardly got any. 

Been a very good 12 months for BRM, NAV up 10cps plus paid a 6cps tax paid divi, so 16 cps all up, I make that about a 23% return after tax and fee's
Extra special bonus for the ones who were greedy with the warrants, I heard the hound was going to get the launch gold plated.

Basil would you mind giving us a NAV update after close today, solid green day for most of their biggest holdings and based on that I have a NAV of 80.5cps

Closing details for KFL and BRM
KFL closing NTA $1.483 share price $1.33 Discount to NTA 10.3%
BRM closing NTA $0.802 share price $0.70 Discount to NTA 12.7%

QuoteClosing details for KFL and BRM on last trading day of November.
KFL closing NTA $1.488 share price $1.35 Discount to NTA 9.25%
BRM closing NTA $0.800 share price $0.71 Discount to NTA 11.25%

How good is that!.  BINGO, I got both those pretty much bang on the money
https://api.nzx.com/public/announcement/442999/attachment/433319/442999-433319.pdf
https://api.nzx.com/public/announcement/442998/attachment/433318/442998-433318.pdf
Awesome to see BRM with just over 80 cents per share NTA.

It seems strange to me that the buy side depth has dropped right off.  Isn't the record date for the dividend tomorrow?

Ex div date is today.
BRM   4 Dec 2024   Interim   1.560c   0.000c   0.001c   20 Dec 2024   NZD

Wouldn't that be end of the day ?

Record date is the 5th December, as per the amended notice below

https://www.nzx.com/announcements/442408

Shares go ex divvy two working days before the record date because settlement of all transactions through the NZX is T + 2 days.  Shares are ex divvy as of the opening of trade this morning.

yep BRM trading x divi today, can someone please remind me of how the DRP price is worked out.

Quote from: snapiti on Dec 04, 2024, 05:01 PMyep BRM trading x divi today, can someone please remind me of how the DRP price is worked out.

The same way as it always has. Look up the notice for the September DRP.

Volume weighted average trading price over the 5 trading days after going ex divvy, less 3%.  Looks like it's shaping up to be a real Christmas gift.

thanks basil, yep Santa going to give us a really nice present by the look of it

We do look set for a great DRP price again :)

Quote from: thedabsman on Dec 09, 2024, 04:57 PMWe do look set for a great DRP price again :)

yep last day tomorrow to finalize strike price but should be about 66.5 cps

It appears Barramundi suspend their on market buy back program during the five days post dividend record date.  That is a big help.

Who is ruining the DRP price average? Please stop buying

Has the DRP strike price been announced

Barramundi Limited (Barramundi) advises that the share price used to calculate entitlements under the Dividend Reinvestment Plan (the DRP) has been set at $0.6668.

Quote from: snapiti on Dec 12, 2024, 10:05 AMHas the DRP strike price been announced

All announcements can be found here

https://www.nzx.com/markets/NZSX/announcements

https://api.nzx.com/public/announcement/443603/attachment/434020/443603-434020.pdf

Solid result for November and for the year, up 26%!
Well proven over the short and long term, (after fees and costs) to be able to beat the market and trading at 10%+ discount to NAV.  What's not to like?

Pretty slack that due to Waitangi Day they skipped this weeks NAV announcement entirely. Would have thought they should have done it on Friday but I suppose a lot of people took Friday off to make it a 4 day weekend.

Been a few good days lately and over a 20% bounce in Domino's yesterday so I wonder what NAV is now?

Been away on holiday all week and no access to office spreadsheets so I have no idea.

Anyone else still modeling BRM NAV?

That Wisetech seems to be up and down stock

Big chunk I of BRM fund ..... and Wisetech big down last few days

A lot of the portfolio a bit sick winner, wtc got a bit going on with board and founder feud

csl, aub, ,dominoes, John's lying, next dc woolies


ASX just like NZX....a bit sad

BRM NAV getting beat up, after the divi payment will be down to 70cps, interesting only trading at a 2% discount to NAV at the moment so buy back is not in play to support SP.
Can see the discount SP to NAV widening after it goes x divy tomorrow

https://api.nzx.com/public/announcement/450557/attachment/442131/450557-442131.pdf

Really bad, down 10% in the March quarter with the market being down 3%, a whopping 7% under-performance.

I am increasingly inclined towards managing my own investments in turbulent times.  As the share price to NAV gap closed last quarter to be basically trading at NAV, I sold out completely.

Not really impressed that they have not made more changes to the portfolio given their woeful underperformance.

I sold the wife's last Wednesday for much the same reasons .
Like to have a higher cash position going into "The Trump Recession".

probably more disappointing for me is the lack of cash they are sitting on after the recent warrant capital raise, only 4.2% cash so not much in the kitty to take advantage of lower prices.
Looks like all the warrant money got tipped into the markets at peak pricing.
Will make an adjustment in my holdings to reflect their mismanagement of funds

One of my concerns I articulated during the annual meeting last year is they keep sticking with the same stocks despite them reaching in some cases enormous price earnings multiples.  Xero and Wisetech were two examples I called out at the annual meeting. both trading on forward multiples in the 90's at the time.

Tech names are having a really tough time this year and I dislike investing in companies that are at extremely elevated multiples or are in confirmed downtrends.  Robbie Urquart was quite dismissive of my concerns and of course we know what's happened to Wishtech since then.
(Off Invest direct platform, current recorded PE XRO 123, WTC 91)  I get it these companies are growing but those multiples are eye watering for what I would describe as good growth but not the explosive growth those multiples imply.  Food goodness' sake, you can buy many of the constituents in the magnificent 7 for forward multiples in their 20's.

Basil — it's all about increasing positions in high-quality companies with operational strength and  reducing  or exiting poorly performing investments.

Conviction seems important ....no matter the high multiples in some cases

Interesting they exited Woolworths  ...poor management performace Robbie said ...just like you exiting BRM because of poor management performance lol

This is an excellent point you make Basil and why I like BRM.

KFL is like a share for grandad...like wearing slippers and sipping whiskey in your rocking chair. KFL has very few global superstar shares...it has a few growth shares doing the heavy lifting surrounded by abunch of boring power companies and other defensives like ports, airports and retirement villages...

BRM is the sexy teenager...full of fast growing industry leaders...but like fast growing teenagers..they get a bit cocky and crash and burn...a little too often at present...lol

Unfortunately many of BRM shares have suffered from large M&A activity which hasn't quite come off.

CSL bought Vifor and never quite recovered from swallowing the elephant
Wisetech boss been fishing off the company wharf..shares get punished
Dominoes fell over trying to expand too quickly.
Even now we have James Hardy which was $30 a few year back, grows to $60 and trading pretty well ..then they announce an $8B takeover...markets thinks they overpaying and back down they go to $30..lol

This is how BRM rolls ..up and down volatility.

When I look at the growth companies in BRM there are many I would like to hold long term.
I agree its underperformed last couple of years but we still getting ASX exposure and pie income dividends at better than money in the bank while we wait for the teenagers to get their shit together...particularly the dude fishing off the company wharf.

Eventually some of these higher growth shares will kick some goals. I also like it's got a lot more holdings than KFL and a lot of shares with global ambitions and income from outside OZ


I'd hold a few BRM just for mcquaariebank...who doesn't want to own part of the millionaires factory...lol


There actually quite a bit of crossover between the KFL & BRM companies anyway

BRM has resmed, KFL has its competitor FPH
BRM has mcquaaries and next dc,KFL has IFT
BRM has brambles..the pallets and containers, KFL has MFT and freightways...the trucks
BRm has banks, KFL has power stations

Anyway horses for courses...I hold both BRM and KFL...but if I had a 10 year view ...I'd maybe hold more BRM than KFL.

Australia economy is also tracking to a different path to nz...we been dropping interest rates for a while, they haven't started

BRM NTA has gone up 12% in 2 weeks........bit of a relief for this chunky Sher

Good for you. I'm holding plenty too.

It look like they been selling down CSL...was 10.8% at 31 March report, 9% a few weeks ago and now 8% last couple of Weeks.

CSL was a great share early on but over last few years been a bit of a drag on fund as biggest holding.

Quote from: snapiti on May 08, 2025, 06:02 PMBRM NTA has gone up 12% in 2 weeks........bit of a relief for this chunky Sher

NAV 64.08 24 April, latest 67.99 = 6.1% recovery in the last two weeks.
Still well down on where BRM started the year at 73.93 cents per share despite the ASX being flat for the year.  The 10% underperformance in the March quarter was a bloody shocker....worst underperformance in a quarter I have ever seen.  Shares are trading at 67 v asset backing 68 cents per share, just a 1.5% discount whereas KFL are at an 8% discount.  I think Robbie Urquart has lost his way a bit. Its overdue I start my own fund in Australia.  For starters I won't be holding companies on triple digit PE's who are only growing slowly.  I called him out publicly on this at the last annual meeting but he was tone deaf to suggestions of finding better value stocks for the fund to own.    If it gets to a 10% discount to NTA again, I wouldn't completely rule out being in for a discount to NTA normalizing trade but holding long term, I'm not so sure anymore he's really adding value.   Possibly worth noting their 5 year performance NAV to NAV is now 13.8% per annum v index 14.2% per annum.  3 year performance is 4.3% per annum v index 6.4% per annum.  https://barramundi.co.nz/assets/Investor-Centre/Barramundi-Newsletter-March-2025.pdf   Last 3 years returns in particular have been pretty pathetic.   Unfortunately I subscribe to the theory that the best guide to near term future performance is recent performance.  That 10% underperformance in the March quarter was a game changer for me.  More should have been done to protect the value of the fund.  Futures and options are out there as risk management tools but Barramundi never use them.

sorry NAV up 12% in 4 weeks.....I did not see you as a short term trader with this one Beagle....I got a 10 year strategy with this one....seems to fit in well with my portfolio and longer term goals.....the discounted DRIP fits in nicely with the 10 years plan as well

Fair enough, (good healthy debate), but that ~ 12% bounce was off the lowest point of the year when trump threw his toys out of the cot.  Possibly worth noting the S&P 500 is up 19% since then.

Earlier today, just out of curiosity I had a look back at BRM performance relative to the index right from the inception of the company.  They've done okay and earned their fees overall, (their management expense ratio is quite high) but performance was much better in the earlier years.

pro's and con's in any fund, I think it is poor form they are not holding more cash.
I have been a holder for just over 12 months with a low entry point and BRM do give me some of my exposure to the ASX with out the FIF tax BS, really want to stick my 10 year strategy and are quite happy if the SP is the same in 9 years time whilst collecting discounted DRIP.
8% after tax returns, compounding with the DRIP allocations
Of course only a piece of the wealth creation puzzle plan
SP @68 cps only off 3% from the start of the Donald Duck trade war sell off

Quote from: snapiti on May 09, 2025, 03:36 PMpro's and con's in any fund, I think it is poor form they are not holding more cash.

To be fair, they have said more than once at annual meetings they leave asset allocation including the size of one's cash holdings to investors to decide for themselves and are fully invested most of the time.  Should be a great day on the ASX with international developments overnight. 

yep that is a fair call, just as well I do keep my own allocation balance then

SP closed today at a level making up all the lost ground/carnage Trump trade nonsense did to the market....very pleasing, got a divi ann coming soon as well

NAV has actually snapped back to be ~ 5 cents above where it was on 31 March 25 69.99 cents announced today v 65.01 cents at the end of March.   Up nearly 10 cents from the low.  Holders must be very relieved.  KFL also recovered in a very similar way.

it is quite interesting having conviction in a stock and a 10 year horizon, for me it means sell off events don't seem that big of a deal, it's more like grab yourself a bowl of pop corn and watch the nonsense unfold. I think short term investors feel more relief than long term investors.
 

Whoops:
https://www.nzx.com/announcements/451726

Discount amended to 0.7% from 7.0%

Quote from: Ferg on May 16, 2025, 10:24 AMWhoops:
https://www.nzx.com/announcements/451726
Discount amended to 0.7% from 7.0%

Marked as a price sensitive announcement, a simple misplacing of a decimal place....go figure.

Quote from: snapiti on May 16, 2025, 07:40 AMit is quite interesting having conviction in a stock and a 10 year horizon, for me it means sell off events don't seem that big of a deal, it's more like grab yourself a bowl of pop corn and watch the nonsense unfold. I think short term investors feel more relief than long term investors.

Fair enough mate, we all have different investment objectives and time horizon's.
I'm posting this for the benefit of those looking for income.  People can make their own judgements about whether its a good long term investment in terms of capital appreciation or not.

For me its all about income and the tax free 8% income (worth 12% gross) to replace work income as I gradually move to full time retirement is very appealing BUT only if it isn't declining over time and on average over time, some of it isn't being paid out of capital.

From my perspective the jury is out on BRM and MLN but it would appear management know their home market pretty well and KFL have substantially outperformed over the long run.  Not only have KFL beaten the market (NZX50) over the long haul after their fees the value of NAV has grown from $1.0012 in July 2009 when they initiated the 2% quarterly payment system to be over $1.41 this week.  Inflation (source (RBNZ inflation calculator) means the $1 back then should have grown to $1.45 so not only have they paid the 8% tax free but they have also been able to maintain that $1 in real inflation adjusted terms, meaning your payments are not going down in inflation adjusted terms.  The long term evidence suggests KFL is an ideal investment vehicle for those who want very high income that grows each year in line with inflation, an ideal retiree's stock.

Things look far less rosy for Barramundi.  They initiated the 8% payment policy in August 2009 when the NAV was 79.83 on 3/8/2009, (source Barramundi website).  Since then, NAV has reduced to 0.6999 cents this week, a loss in nominal terms of ~ 12% but in inflation adjusted terms of 39.5% such that people's purchasing power from the dividends in significantly eroded over time.

Marlin has also suffered a 10.3% nominal loss in NAV since initiating the dividend policy in August 2010 and dividend income has lost 38.3% of its real inflation adjusted value over time.  MLN has also materially underperformed the S&P500 over that timeframe.

Conclusion.  Kingfish is a standout performer of the trio, both growing its NAV over time, soundly beating the NZX50 over time and contemporaneously paying very high dividends that have over time increased in line with inflation.  I suspect management know their home market a heck of a lot better than overseas markets and that confers a significant advantage that's reflected in the significant superior long term performance we've seen.

Anyway...that's what I have observed and I thought I would post it if in case anyone is interested.  DYOR that suits your own investment objectives and time horizon.

Good analysis, Basil. And well made points re the importance of inflation eroding the principal.

I'd be interested to know over the long term how much the DPS has varied year-to-year.  In retirement I'm also looking for the predictability / stability of the dividend flows.   

I don't hold KFL currently, but it has performed very well and I'm consider switching out of my NZX50 tracker fund to KFL.

For KFL I guess you wouldn't be happy if you purchased in 2021 and have seen the share price and dividends drop roughly 30%.

Quote from: Dolcile on May 16, 2025, 01:50 PMFor KFL I guess you wouldn't be happy if you purchased in 2021 and have seen the share price and dividends drop roughly 30%.

Yes but you would be particularly happy if you bought in six weeks ago at 1.19. ;D

Hey Dolcile, there's a truck load of information on Kingfish's website https://kingfish.co.nz/investor-centre/.  Time doesn't permit me to do a detailed study of variances in income level's over the years, suffice to say I am happy over the long run dividends are keeping up with inflation.

I think its also probably worth noting that as dividends are paid based on NAV, if you get your timing right and buy at say a 7% discount, your net dividend becomes 2% / 0.93 = 2.15% per quarter.  You can further boost this by taking shares in lieu of dividend at a 3% discount so that 2.15% becomes 2.15 / 0.97 = 2.2165% tax free per quarter. 2.2165% compounds quarterly to be worth an annual return of 9.165%.  For 33% taxpayers that's worth 9.165 / 0.67 = 13.657% gross.  The value of free warrants issued from time to time is additional to that.    Each hundred thousand of capital invested generates $9,165 tax free per annum that is likely to go up with inflation.  Pretty cool don't you think?

Basil me thinks you are cherry picking accounting
lets look at the last 10 years results.
BRM trading on this day 10 years ago closed @ $67 cps, today trading at 70cps (profit) plus the 8% yearly after tax  divi
KFL trading on this day 10 years ago closed $1.38 cps, today trading at 1.34 cps (LOSS) plus the 8% yearly after tax  divi.
 

now lets look at it in real terms for this investor, on the days I entered my BRM share holding (Oct 23) I paid 64 cps to 68 cps with an average of 66 entry point, during the same period KFL was trading at 1.23 to 1.29 so lets call it an ave of $1.26.
Today BRL sp is 70 cps giving me a gain of 6% plus all the divi's @ 8%
Today KFL sp is 1.34 which would have been a gain of 6.3% plus all the divi's@ 8%.
So really nothing in it for my holdings but as above shows, BRM has a superior 10 year return to KFL.

Fair enough mate that you pick a time frame that suits you and 10 years is a decently long time frame.

I didn't cherry pick, All I did was look at each of the trio from the date each company first started it's 2% quarterly dividends to now. That tells the story over the longest possible time frame for each company in the group.  You could make a case that the most recent 10 years of performance is the most relevant and I accept there's a fair bit of validity behind that point of view and I concede, I often make the case on here that the most recent years performance is the best guide to the near future.  I was just really curious this morning how things had worked out over the long haul, hence why I crunched the numbers..  All good, good debate and food for thought for others as to what's the right timeframe for their thinking.

This is why I still like a bit of BRM in my portfolio...hope its a good deal and they didn't pay too much... true global ambitions.


The logistics software giant surged over 6% after announcing its biggest-ever deal, shelling out $3.25 billion to acquire Texas-based e2open. WTC said the deal gets WiseTech closer to being the "operating system" for global trade.


Wisetech is biggest tech stock on asx...

disclosure I am a bit of a BRM fan boy.

Think with a clear and consistent mindset around money psychology this unit has been a winner for me.

I am speculating that the "Closed End PIE" (not all PIEs are quite the same) effectively tax exempt distribution benefits might potentially endure as we face the prospects of a greater taxation possibility of what would be a capital gains regime, admittedly perhaps not quite so well for a more wealth taxation future possibility.

There is no shortage of theories on whether BRM is of real value merit and how you can outperform or increase your returns, and I hold it as true that there are drivers of the numbers.

It is what it is, and elements of it I say is the nature of the beast.

30 odd years probably of investing strategically I have to say was stress free and undoubtedly of current financial benefit for me.

looking forward to another feed of DRIP shares shortly, BRM has to be a long term hold to get the real benefits, 8% after tax returns very attractive especially if you are paying high % taxes. Good chance of a rise in the SP somewhere in the future.Also returns from DRIP are based on NAV and a 3% discount, so for those with a low entry point, mine is about 67 cps, returns over the last year with the NAV being   75 to 80cps returns have been higher than 8% return on my capital.
I received returns of 6.6 cps last year including DRIP discount, that equates to an  almost 10% tax paid return on my capital, if you include gains from warrants it would be over 10%
 

I find it interesting that this "tax free" statement is thrown around without caveat.  The reality is that thr distributions (they aren't really dividends) from BRM are tax free once received by the shareholder.  However, the income generated in BRM (I.e. the company dividends received) are taxed at 28% without the ability to offset franking credits.   So tax is paid, it is just deducted from the NAV before BRM distributions 2% of the NAV.   

The 8% distribution is fantastic provided they can - minimise NAV volatility and at the same grow the NAV at 8% plus inflation.  All net of tax and the generous fees. 

If not, investors are taking distributions at the expense of depleting their capital.   

Holders might get a new warrant issue shortly as its been about 6 months since the last one was exercisable.   

Quote from: Dolcile on May 27, 2025, 08:57 AMI find it interesting that this "tax free" statement is thrown around without caveat.  The reality is that thr distributions (they aren't really dividends) from BRM are tax free once received by the shareholder.  However, the income generated in BRM (I.e. the company dividends received) are taxed at 28% without the ability to offset franking credits.  So tax is paid, it is just deducted from the NAV before BRM distributions 2% of the NAV. 

The 8% distribution is fantastic provided they can - minimise NAV volatility and at the same grow the NAV at 8% plus inflation.  All net of tax and the generous fees. 

If not, investors are taking distributions at the expense of depleting their capital. 

As much as I agree with what you say I wouldn't quite draw the same conclusion line. It has indeed been around for quite some years at this point. It is very admittedly different things to different people, and I realise it is not a unit to be merely dollar cost averaged over time to garner the best potential return from holding it, you do benefit from a strategy and monitoring imho. Your franking comment holds for either direct holdings or say a BRM indirect exposure to Aussie equities

How can I claim franking credits? I'd love to on my bank holdings!

Quote from: thedabsman on May 27, 2025, 12:58 PMHow can I claim franking credits? I'd love to on my bank holdings!

Easy to answer.  Move to Oz!

RB

Quote from: Red Baron on May 27, 2025, 01:03 PMEasy to answer.  Move to Oz!

RB

I'm not sure about that. I hear there are a lot of Australians in Australia? That is a huge problem. I do hear there are nearly as many Kiwis there so that is something!

This sounds ominious for ASX ...could fall 20%

Thanks to muse on other channel who said AFR story said

Australia's sharemarket is on the precipice of a near-20 per cent collapse as a downturn in company earnings delivers a brutal reality check to sky-high valuations and complacent investors who have been riding the wave of passive money flowing onto the bourse.
That's the ominous warning from MST Marquee, which believes that profits for the S&P/ASX 200 are on the verge of contracting for a third consecutive year, and that is at risk of extending into a fourth year.

Muse put a link up over there ..doesn't seem to work here

XRO making a $4 billion acquisition to make them great in the USA

Prob help BRM portfolio

i think XRO is way over priced and wished it was out of the BRM portfolio.
They do not do much shuffling of the portfolio

Quote from: snapiti on Jun 26, 2025, 06:50 AMi think XRO is way over priced and wished it was out of the BRM portfolio.
They do not do much shuffling of the portfolio

I told Robbie Urquart, the portfolio manager, exactly that during the annual meeting last year and also questioned Wistech's valuation.  He brushed off my concerns and said those two meet all their other investment criteria apart from PE.    I think he's barking up the wrong tree in terms of their prospects going forward relative to earnings but to be fair, they have had a pretty good run with those two over the years so far.

Another Warrant Issue...

The exercise price will be $0.70 less any dividends declared

The record date for the issue is 6 August 2025

I think that will be pretty lucrative in 12 months time

Quote from: thedabsman on Jul 01, 2025, 03:45 PMI think that will be pretty lucrative in 12 months time

I thought this about the last warrant issue...about 12 months ago...lol...

Oh well at least the divi and drp discount have been acceptable

Due only 14 weeks after KFL warrants which is pretty close for those who have both.

Quote from: snapiti on May 27, 2025, 07:41 AMlooking forward to another feed of DRIP shares shortly, BRM has to be a long term hold to get the real benefits, 8% after tax returns very attractive especially if you are paying high % taxes. Good chance of a rise in the SP somewhere in the future.Also returns from DRIP are based on NAV and a 3% discount, so for those with a low entry point, mine is about 67 cps, returns over the last year with the NAV being   75 to 80cps returns have been higher than 8% return on my capital.
I received returns of 6.6 cps last year including DRIP discount, that equates to an  almost 10% tax paid return on my capital, if you include gains from warrants it would be over 10%
 

I did reinvest in a small stake in BRM a little while back.  Have held much bigger stakes in the past.  Currently just on 3% of my portfolio.  New warrant issue is an opportunity to boost that a bit higher.  To be honest, I'm not all that impressed with how lethargically they manage the portfolio and keep stocks on mega high metrics but the ASX has been doing a lot better than the NZX so hopefully they can at least pay the 8% tax free and the share price won't go down in the years ahead.    I'm taking the cash now rather than dividend reinvestment program. 

Quote from: Basil on Jul 02, 2025, 12:59 PMI did reinvest in a small stake in BRM a little while back.  Have held much bigger stakes in the past.  Currently just on 3% of my portfolio.  New warrant issue is an opportunity to boost that a bit higher.  To be honest, I'm not all that impressed with how lethargically they manage the portfolio and keep stocks on mega high metrics but the ASX has been doing a lot better than the NZX so hopefully they can at least pay the 8% tax free and the share price won't go down in the years ahead.    I'm taking the cash now rather than dividend reinvestment program. 

I agree with that bazil, they get paid exceptional well for such lethargic fund management, essentially all they seem to do is put new funds into the same investments, however, like you, happy with the consistent 8% return with no capital loss

One of the really disappointing portfolio allocation is CSL.  Representing nearly 11% of the portfolio as of March and it is sitting at close to a 5 year low!

Domino's another shocker.  Down 15% today and at all time lows by the look of it.

Quote from: Dolcile on Jul 02, 2025, 07:54 PMOne of the really disappointing portfolio allocation is CSL.  Representing nearly 11% of the portfolio as of March and it is sitting at close to a 5 year low!

Agree 100%.  Owning stocks in a downtrend is not a good idea. I'm really going to wind up Robbie Urquart the fund manager at this years annual meeting.  Huge underperformance in the March quarter.  What are you doing about it ?    Not drinking the cool aid here and not really all that interested in increasing my very modest 3% portfolio allocation.   This is a low conviction, small position hold for me.

Quote from: Turkey on Apr 29, 2025, 10:39 AMThis is an excellent point you make Basil and why I like BRM.

KFL is like a share for grandad...like wearing slippers and sipping whiskey in your rocking chair. KFL has very few global superstar shares...it has a few growth shares doing the heavy lifting surrounded by abunch of boring power companies and other defensives like ports, airports and retirement villages...

BRM is the sexy teenager...full of fast growing industry leaders...but like fast growing teenagers..they get a bit cocky and crash and burn...a little too often at present...lol

Unfortunately many of BRM shares have suffered from large M&A activity which hasn't quite come off.

CSL bought Vifor and never quite recovered from swallowing the elephant
Wisetech boss been fishing off the company wharf..shares get punished
Dominoes fell over trying to expand too quickly.
Even now we have James Hardy which was $30 a few year back, grows to $60 and trading pretty well ..then they announce an $8B takeover...markets thinks they overpaying and back down they go to $30..lol

This is how BRM rolls ..up and down volatility.

When I look at the growth companies in BRM there are many I would like to hold long term.
I agree its underperformed last couple of years but we still getting ASX exposure and pie income dividends at better than money in the bank while we wait for the teenagers to get their shit together...particularly the dude fishing off the company wharf.

Eventually some of these higher growth shares will kick some goals. I also like it's got a lot more holdings than KFL and a lot of shares with global ambitions and income from outside OZ


I'd hold a few BRM just for exposure to mcquaarie bank...who doesn't want to own part of the millionaires factory...lol


There actually quite a bit of crossover between the KFL & BRM companies anyway

BRM has resmed, KFL has its competitor FPH
BRM has mcquaaries and next dc,KFL has IFT
BRM has brambles..the pallets and containers, KFL has MFT and freightways...the trucks
BRM has banks, KFL has power stations

Anyway horses for courses...I hold both BRM and KFL...but if I had a 10 year view ...I'd maybe hold more BRM than KFL.

Australia economy is also tracking to a different path to nz...we been dropping interest rates for a while, they haven't started

Reposting the above for the BRM naysayers.

Yes CSl has underperformed...but only last 5 years. If you open up a long term chart you will see it lists for about $2.50......rose to $340 and now sits at $239....its a global leader in what it does plasma collection and I think they should hold it ..wide moat. BRM have reduced their holding % anyway


The problem with you trader fellas is you want up all the time and you want your return quickly before you move on to the next hit

Do you complain to KFL that they continue to hold MFT...I mean it's only $66 and was once $95. Ands it's about 10% of Kfl fund..same as CSL
That's a 30% drop from its highs...CSL is down about same % from its highs..think was about $342?

KfL is probably better for you...their last purchase was a huge growth opportunity...another NZ based power station...to sit alongside all their other defensive stocks...lol

BRM invests in some really interesting companies...Wisetech for one ..is the biggest tech stock listed on ASX... trying to crack a big global addressable market.




Personally I'm happy if the BRM share price doesn't go anywhere fast but keeps spitting out 8% each year...double my money in 9 years right? I think that's a reasonable return for a diversified fund.

To me KFL is the riskier fund. Much more concentrated holdings...FPH @20%..hmm...more companies dependant of local NZ market vs BRM more global businesses.

Discl. Hold both BRM and KFL as dividend stocks...hopefully some growth too..

Someone jumped the gun on BRMWI issue.  Documentation said that the record date was to be 6/8/25 and issue date 7/8/25.

Quote from: Bev on Aug 05, 2025, 07:46 PMSomeone jumped the gun on BRMWI issue.  Documentation said that the record date was to be 6/8/25 and issue date 7/8/25.

Bit weird all around, I think the market rolled it over a day ahead and then Invest Direct cancellations of my trades loaded yesterday were cancelled as ex the warrant issue, at around 10am by email advices, see on other site Invest Direct had loaded some holdings of investors with head shares rather than warrants yesterday also.

Yeah my portfolio value on Invest Direct's platform looked stunning for a while there yesterday morning.  They have it loaded up correctly as new warrants now.  It'll be interesting to see where they start trading. 

Quote from: Basil on Aug 06, 2025, 10:09 AMYeah my portfolio value on Invest Direct's platform looked stunning for a while there yesterday morning.  They have it loaded up correctly as new warrants now.  It'll be interesting to see where they start trading. 

Mine did to. I thought I had become wealthy overnight. Sadly today its back to reality.

Quote from: Minimoke on Aug 06, 2025, 10:12 AMMine did to. I thought I had become wealthy overnight. Sadly today its back to reality.

Don't be too down about it, see the head shares haven't really dropped since going ex the bonus today, first two trades of 100K levels in at the 73c low offer, when was it that the discount to NTA was about 15%?
Maybe now is not the time to buy, contemplating I might yet sell some warrants at opening if the Mr Market seems to mirror the current behaviour??

When do warrants start trading?... thought it was today..

My understanding is, they first traded ex entitlement yesterday, the record date is today, they are issued to holders tomorrow and trading starts on Friday. 

Quote from: Ricky Bobby on Aug 06, 2025, 11:45 AMWhen do warrants start trading?... thought it was today..

Their announcement said the 8th... but it also said they'd be allocated on the 7th. 

4 cents is right about where I had the new warrants pegged.  Managed to get a few extra at 3.3 cps with the first trade of the day.

Quote from: Basil on Aug 08, 2025, 05:43 PM4 cents is right about where I had the new warrants pegged.  Managed to get a few extra at 3.3 cps with the first trade of the day.

yep 4 cents fair money, I sold mine @ that (108000) and bought the head shares, keep it simple and it all adds to the overall return which is certainly helped by the discounted DRIP.
BRM whilst not a top performer it is turning out to be a consistent very solid after tax return.
However history shows us timing your buy in has been important.   

High fees mediocre returns...

Barramundi Limited (NZX: BRM) today announced a net profit after tax for the 12 months to 30 June 2025 of $7.9m.
 
 Key elements of the FY25 result include profit on investments of $7.7m, dividend, interest and other income of $4.7m, less operating expenses, fees and tax of $4.5m.
 
 The portfolio's adjusted net asset value return** of 3.9% (6.0% gross performance return****), was below the benchmark index's return***** for the year of 13.5%.

They had a terrible third quarter, down 10% relative to index. Apart from that they've been going okay over the long term.

Quote from: Mos on Aug 19, 2025, 09:18 AMHigh fees mediocre returns...

Barramundi Limited (NZX: BRM) today announced a net profit after tax for the 12 months to 30 June 2025 of $7.9m.
 
 Key elements of the FY25 result include profit on investments of $7.7m, dividend, interest and other income of $4.7m, less operating expenses, fees and tax of $4.5m.
 
 The portfolio's adjusted net asset value return** of 3.9% (6.0% gross performance return****), was below the benchmark index's return***** for the year of 13.5%.

this is why entry timing is so important, head shares often trade at a 10 to 15% discount to NAV and the discounted DRIP is so important for compounding returns also they have beaten the index for many years

Agreed Snapper. Also history tells us that periods of outperfomance often follow on from periods of underperformance.

Yep, BRM (& KFL) aren't the buy and hold forever types.

You don't want to fall in love..... :-* 

I prefer the PIE Funds Australasian Dividend Growth Fund for my AU exposure. Through Investnow you can select reinvest dividends and if you need income you just sell units.

BRM biggest holding CSL plunges 15% today

Saving 3,000 staff and going to spin off a division ...punters didn't like that news

GOSH.........7% of their fund down 15%, surprised it was not on the 6 oclock news

Last weeks NTA was 73.57 cps.  My spreadsheet modelling has the NTA as at close of market today up slightly at 73.66 cps
(my valuation calculations do not take into account exchange rate movements).
(I came down to my cold office from a warm fire upstairs to update this tonight so Barramundi shareholders can sleep well tonight and cruise through the work day tomorrow with no worries)..I hope you all appreciate it. :)

I just had a read of the August newsletter. If you look at the company results since the newsletter was published then you would be thinking, 'has it come to that time when a new fund manager should be appointed'.
The portfolio needs a complete refresh. And why are they so far off the pulse. There are just too many unwanted surprises  with their investments.

Will they continue to underperform the index.

Disc. Hold

Please come along to the annual meeting and vent your frustration.  I will support you.  I agree that their performance this year has been poor.  I'm hoping because they have underperformed so far in 2025, that the rest of the year and 2026 they will outperform going forward. 

I still don't understand that when it is your day job to analyse and monitor these companies, that you can get it so wrong. Collecting the fees along the way for their expert advice.

The reason that I outperform the index with my own investment strategy isn't because I continue to pick winners. It's purely because I dont invest in dogs, or if a stock becomes a dog then send it on its way.

The news letter stated that the Board fully supports the fund manager and his strategy. Maybe they need to have another board meeting after this week and aim for a more professional outcome.

The current manager is putting investors off investing.

Just vote with your feet.  PIE funds seems to have a much better handle on the AU market. 

Warrants will likely have an exercise price of only 64 cents.  Not tying up much money in the hope of a portfolio recovery over the next year. Agree it's been a tough 2025 for Barramundi which is frustrating when you see other funds going well. 

Quote from: Toddy on Aug 29, 2025, 05:47 PMI still don't understand that when it is your day job to analyse and monitor these companies, that you can get it so wrong. Collecting the fees along the way for their expert advice. The reason that I outperform the index with my own investment strategy isn't because I continue to pick winners. It's purely because I dont invest in dogs, or if a stock becomes a dog then send it on its way.
The news letter stated that the Board fully supports the fund manager and his strategy. Maybe they need to have another board meeting after this week and aim for a more professional outcome.
The current manager is putting investors off investing.

Its been a very tough 2025 for Barramundi shareholders with significant underperformance mainly in the first quarter that was a real shocker.  At the forthcoming annual meeting I'm certainly going to ask the fund manager Robbie Urquart what lessons he took from that quarter where they underperformed the market by a shocking 10% !

At times like this I try and do my best to focus on my standard 5 year evaluation criteria which I use for all companies and funds without exception when reviewing their performance.  As we can see in their most recently monthly newsletter at the bottom of page 3 their 5 years average compound return has been 11.7% per annum on a NAV to NAV basis after all fees and tax.  That's just below the benchmark of 12.8% and I believe the main issue was the shocker first quarter this year when some of their holdings took quite a beating.  https://api.nzx.com/public/announcement/456838/attachment/449604/456838-449604.pdf
Their gross return before expenses fees and tax, (don't forget there is tax in there as well) was 14.2% so 11.7% after fees expenses and tax, while lower than the benchmark by a little, is still a satisfactory average annual compounding return over 5 years.

If its any consolation the market really liked Next DC's result yesterday and the updated NAV in my model is slightly up on their most recent announcement and by my calculations end of month NAV is 73.4 cps.  As noted above, my view is the warrants confer great optionality over a recovery in their portfolio and I am keener on them than the shares themselves at this point.  64 cents probable exercise price, (you don't have to exercise them if the market turns badly against us), plus 3.8 cents now = 67.8 cents plus free possible upside to NAV, (which is already quite a bit higher than 67.8 cps at 73.4 cps), over the next 11 months.  Warrants a good risk management tool in my view because you gain all the possible upside to the value of the BRM portfolio but you have a maximum downside of whatever you pay up front for them.

Gosh another woeful month and they've doubled down on CSL and Wisetech.   

Adjusted NAV underperformed the benchmark by 370bp.

https://api.nzx.com/public/announcement/458553/attachment/451878/458553-451878.pdf

Quote from: Dolcile on Sep 11, 2025, 11:22 AMGosh another woeful month and they've doubled down on CSL and Wisetech. 
......

Anecdotally Bell Potter analyst view on the two companies value proposition on 12 09 2025.
CSL the issues of each segment of the business are known to be negative but the market reaction is overly proportionate to the downsides. Will not be a quick bounce back on any fundamentals that will need active management and likely some further shut down than even that determined by the board at the moment. Projection is that at least will be 12 months until any fundamental improvements are in place. HOLD certainly I took from it, perhaps akin to SPK the future success of board strategies will determine the upside potential but they seemed happy to put a BUY to it???

Wisetech was rated the Australian market technical stock to BUY at current prices, potentially only bettered in the established businesses by ProMedicus,that company would be analysed in the Medical category. Think in AUS small tech equities they felt Adveritas ?? ASX.AV1 ticker had a very positive SP trend likelihood by calendar year end.

source: Bell Direct you tube 12 09 2025 hour long webinar, bit of a broker marketing presentation but quite specific into some content should anyone desire to indulge.

My concern with BRM is they hold little cash for opportunistic buying,they regularly cap raise via warrants but seldom buy into investments outside of current portfolio. Whilst I am happy with my 2 year return it is really only come about from a timely buy in. I think the investment team is somewhat lazy in their approach when actively managing the portfolio. Good exposure to the ASX but will always struggle to outperform the index due to the high number of bank stocks they hold. Do like the PIE tax and discounted DRIP.

They did hold 9.1% cash at the latest full disclosure of portfolio position at the end of June but some of their positions need a deep review.  One of their investment pillars in the STEPP process is not paying to much for growth

QuotePrice/Valuation
How much of the future earnings growth is already reflected in the share price? Where does the current share price sit in relation to Fisher Funds' worst to best case valuation range? A company will generate a higher score where the market price currently reflects little of that company's upside potential.

I called the investment manager out on this at last years annual meeting buying stocks like Wisetech and holding XRO on PE's of circa 100.  It was water off a duck's back.  I might try again at this years annual meeting but my sense is that's its a waste of time.  I like the warrants and the optionality they confer and they are an effective risk management tool.  Heavily weighted to warrants at this point as compared to shares.

There is something to be said for investing alongside a professional fund manager who has serious skin in the game as they're simply more motivated to get it right, that's human nature for you.  PIE funds and Discovery come to mind.

yep had noted the cash pile was close to 10% at the moment, however it is, 90% of the time, only 2 to 5%, giving them few opportunity windows.

We are getting smashed today.
Wisetech and CSL tanking.
There goes the Xmas bonus for these guys.

It's going to be a long grind from here.

Quote from: Toddy on Oct 28, 2025, 01:44 PMWe are getting smashed today.
Wisetech and CSL tanking.
There goes the Xmas bonus for these guys.

It's going to be a long grind from here.

Wisetech in news again

Staff insider trading apparently ..the scandle continues

Disappointing.  I think they pay too much for growth stocks and hang on too long after the narrative has changed.  Just holding some warrants now.  Annual meeting this Friday.  Might go along and make some noise if I have the time.  Didn't do any good last year though so probably a waste of my time.

6 months ago SP was $0.66. todays its around $0.69. With a dividend in there. I'm not stressed

69.35 cps is today's update.  Better than I was expecting.  Warrant exercise price is almost sure to be 64 cps, 5.35 cps lower than the current share price and there's more than 9 months to run so there's likely, (but not certain) to be some value there at the time of exercise in August 2026.  2.4 cps is certainly a cheap option on their portfolio picking up in value.

Not wasting my time at the annual meeting this year despite the free lunch.  Not very happy.  At last years meeting I publicly admonished Robbie Urquart about chasing tech companies on super elevated metrics, singling out XRO and Wisetech on triple digit PE's.  Was water off a duck's back.  Over the last year Wisetech down from $115 to $70 and XRO down a few dollars.
No point in me going as it makes me grumpy and I lose my appetite that he ignored me last year and I am certain more barking would make no difference.   Why waste hours of my time ?  Frankly, I'd rather take my dog for a walk in the sun and get my own lunch.    We will see if their NTA picks up over the next 9 months such that its worth exercising their warrants.  Certainly 2.4 cents per warrant is not a lot invested on the chance it does.

Quote from: Basil on Oct 31, 2025, 10:10 AMNot wasting my time at the annual meeting this year despite the free lunch.  Not very happy.  At last years meeting I publicly admonished Robbie Urquart about chasing tech companies on super elevated metrics, singling out XRO and Wisetech on triple digit PE's.  Was water off a duck's back.  Over the last year Wisetech down from $115 to $70 and XRO down a few dollars.
No point in me going as it makes me grumpy and I lose my appetite that he ignored me last year and I am certain more barking would make no difference.   Why waste hours of my time ?  Frankly, I'd rather take my dog for a walk in the sun and get my own lunch.    We will see if their NTA picks up over the next 9 months such that its worth exercising their warrants.  Certainly 2.4 cents per warrant is not a lot invested on the chance it does.

I'm not going either and also like the free lunch and a bit of a div here and there. You are more than welcome to come over here and join the party we are having at FSF and SEK. We got a special 10c div coming our way with SEK in December/January.  8)   

Robbie trying to shine the best possible light on things.  https://api.nzx.com/public/announcement/461765/attachment/455528/461765-455528.pdf
If Fisher funds doesn't perform in FY26 they should get the boot.

Lipstick on a pig comes to mind.  Although I'm not sure how you can make the huge negative bar in the waterfall attributable to poor stock selection look anything but woeful.

BRM makes up 10% of my investment portfolio, certainly a big under performer when compared to the rest of my portfolio, with most them being of less risk as well.
Pleased I sold my warrants as soon as they hit my account.

Quote from: Dolcile on Oct 31, 2025, 03:02 PMLipstick on a pig comes to mind.  Although I'm not sure how you can make the huge negative bar in the waterfall attributable to poor stock selection look anything but woeful.

To be fair, the chart of Barramundi over / under performance from the benchmark for the last decade in that presentation looks okay.  Everyone wants to kick a dog / pig when its down.  I'm pleased I walked my dog in the sun today rather than barking up a storm at the annual meeting. 

October not great.. more underperformance I'm afraid

https://api.nzx.com/public/announcement/462655/attachment/456705/462655-456705.pdf

https://api.nzx.com/public/announcement/466571/attachment/461170/466571-461170.pdf

TSR of 1.7% pa over the last 5 years compared to the benchmark return of 10.8% pa.  Shocking.

Agreed.  To be fair the NAV to NAV performance which is after fees and excludes whether the shares are trading at a discount or a premium has been just over 5% over that 5 year timeframe but noting the 3 month, 1 year, 3 year and 5 year performance are all well south of the benchmark I agree that the investment team need to be fired.  Its simply not good enough. Same goes for the team at Marlin who have an equally appalling track record in woeful underperformance in recent years.

Xero continues its downward trend ..now into the 80's

Apparently affected by the AI fears and the market becoming to realise they paid far too much for that US acquisition

Share price long way off the close to $200 and BRM suffering.

Still seem to be holding a decent chunk ..conviction must be strong

The game is up on "looney tunes" tech valuations. 

Oaf ASX getting hammered today.  BRM and PIE Australasian Dividend Fund even worse. 

Barramundi have lots of CSL dont't they?

Share price getting hammered last couple of days

"The [company's] strategic framework is sound," insists interim CEO Gordon Naylor.

"The challenge is whether we can do better within that framework."

 So future O.k ..no worries

Sold the last of my BRM warrants today.  I have lost confidence in the team at Barramundi and Marlin.  They are FAR TOO SLOW to change their positions when the narrative changes and in my opinion they are only paying lip service to the last part of the STEPP process.

QuotePrice/Valuation
How much of the future earnings growth is already reflected in the share price? Where does the current share price sit in relation to Fisher Funds' worst to best case valuation range? A company will generate a higher score where the market price currently reflects little of that company's upside potential.

I'm not prepared to be involved and support any fund manager that holds significant amounts of tech stocks on "looney tunes "metrics. Kingfish and their NZX holdings can easily be replicated without Fisher's quite expensive fees or beaten by anyone with a reasonable skill set so I'm done with fisher funds.
In her earlier years I think Carmel Fisher had some magic but the current investment team have disappointed for too long and should be fired.

Quote from: Basil on Feb 12, 2026, 05:23 PMSold the last of my BRM warrants today.  I have lost confidence in the team at Barramundi and Marlin.  They are FAR TOO SLOW to change their positions when the narrative changes and in my opinion they are only paying lip service to the last part of the STEPP process.
I'm not prepared to be involved and support any fund manager that holds significant amounts of tech stocks on "looney tunes "metrics. Kingfish and their NZX holdings can easily be replicated without Fisher's quite expensive fees or beaten by anyone with a reasonable skill set so I'm done with fisher funds.
In her earlier years I think Carmel Fisher had some magic but the current investment team have disappointed for too long and should be fired.

Agree totally. I had a look at Kingfisher, Marlin and Barramundi not long ago, thinking a wider exposure would mitigate risk, plus the PIE tax structure appealed, but really their performance over time has been abysmal and the trend has continued (another monthly report showing underperformance released today.) Some of the stocks they hold are peculiar to say the least.

They are supposed to be professional investors yet can't beat a simple tracker fund. Not just occasionally, but most of the time. And they want to take a fee for that? They should really only get paid if they outperform the index. Might help them to take their jobs a bit more seriously??

BRM held their 2014 annual meeting on 30 October 2024.  During that meeting I publicly asked Robbie Urquart the investment manager to explain to those attending why he thought Xero on a forward PE of just on 100 and priced at $148 at the time and Wisetech on a forward PE of just on 110 and priced at $114 at the time fitted with their STEPP valuation process in terms of future growth not already priced in ?

He couldn't have been more dismissive if he'd had an hour to practice before my question.  Went on about how PE is just one of many valuation methodologies they use and that's not the right way to value these companies.  Today less than 16 months later XRO is trading at just on $73, about half what it was and WTC is trading at just $42, barely a third of what it was.  I singled out those two companies because I thought they had really lost the plot on those on the forward PE's they were trading on relative to their growth rate.

Earlier that year at the Kingfish annual meeting I spent quite a bit of time after the meeting with Matt Peek their investment manager outlining the case for Turners in a very crystal clear way when they were ~$4.  He said he was going to visit Todd and Aaron the following month.  He never bought any and the price has more than doubled.

Those guys can't seem to get out of their own way.  Notice how every other investment fund prices their units every day...but that's too much work for Fisher Funds who only do it once a week.  Is that just laziness ?

What similar alternatives are people looking at? I have some RF1 and have enjoyed the returns but I'd prefer a PIE

It makes me wonder why Fisherfunds KiwiSaver growth/performance funds do better than their NZX listed investments. Why the difference when they manage them all?

Quote from: Basil on Feb 13, 2026, 01:20 PM.  Notice how every other investment fund prices their units every day...but that's too much work for Fisher Funds who only do it once a week.  Is that just laziness ?

Actually Fisher does calculate their funds, including the Kiwisaver ones, every day. It is just the listed ones that are weekly.

Quote from: 777 on Feb 13, 2026, 02:04 PMActually Fisher does calculate their funds, including the Kiwisaver ones, every day. It is just the listed ones that are weekly.

I guess that makes the point - they seem to be more focussed on their KiwiSaver products and the NzX listed ones are the poor cousins. Maybe they get the also-rans in Fund Managers as well?

AI analysis of BRM - based off a one sentence prompt - Can you analyse the holdings of BRM.nzx  Barramundi



Overview of Barramundi (BRM) Portfolio
Barramundi Limited (BRM) is a New Zealand-listed investment company managed by Fisher Funds, focusing on a diversified portfolio of 20-35 growing Australian companies.
The fund aims to deliver competitive returns through capital growth and dividends, with a benchmark of the S&P/ASX 200 Index (70% hedged to NZD) plus an additional target.
As of 31 January 2026 (the most recent detailed update available), the portfolio consists of approximately 24 holdings, emphasizing quality growth stocks across various sectors.
The fund held about 4% in cash and derivatives.

Recent performance for January 2026 showed a gross return of -2.2% and an adjusted NAV return of -2.3%, underperforming the benchmark index's +1.6% gain.

This was largely due to a rally in commodity-related sectors (Energy and Materials) and weakness in IT amid AI-related concerns. The manager views the IT sell-off as temporary and expects upcoming earnings reports to support recovery.

The latest undiluted NAV as of 11 February 2026 was $0.5978, with the share price closing at $0.6390.
Sector Allocation
The portfolio is diversified but tilted toward growth-oriented sectors like Financials, IT, and Health Care. Here's the breakdown as of 31 January 2026:
Sector Allocation (%)

Financials
26
Information Technology
19
Health Care
17
Communication Services
15
Industrials
10
Materials
7
Consumer Discretionary
4
Cash & Derivatives
4

Top Holdings:  The top five holdings represent around 28% of the portfolio (based on the January data).
Percentages are approximate and may fluctuate slightly with market movements. As of 11 February 2026, the top five were similar but with minor adjustments (e.g., Macquarie at 7%, Brambles replacing Maas Group).

WiseTech Global (6%): A leading logistics software provider with global reach, benefiting from increasing trade complexity and digital adoption.

CSL (6%): A global biotech leader in plasma therapies and vaccines, with strong R&D and long product lifecycles.

Macquarie Group (6%): A diversified financial services firm focused on asset management and markets, with exposure to structural growth areas like renewables.

Maas Group (5%): A diversified industrial player in construction materials and services, with valuable quarry assets and cost advantages.

BHP Group (5%): A major mining company with strong positions in copper, iron ore, and potash, poised for growth from electrification and population trends.

Full List of HoldingsThe complete portfolio as of 31 January 2026 includes the following companies (in alphabetical order). While exact percentages for all aren't publicly detailed beyond the top holdings, each is selected for its growth potential, competitive moats, and alignment with long-term trends like digitalization, health advancements, and infrastructure. Brief rationales are based on the fund's descriptions:
Ansell: Personal protective equipment manufacturer; growth from emerging market standards.
ANZ: Major bank with strong retail and agribusiness; benefits from industry barriers.
AUB Group: Insurance broking network; expanding through acquisitions and organic growth.
Audinate Group: Audio networking tech leader; early in displacing analogue systems.
BHP Group (top holding): Competitive miner with cost advantages in key commodities.
Brambles: Logistics firm specializing in pallets; network effects drive returns.
CAR Group: Online classifieds network; international expansion opportunities.
Cochlear: Hearing implant pioneer; addresses unmet needs with R&D focus.
Commonwealth Bank of Australia: Leading bank; scale and moats ensure profitability.
Credit Corp: Debt collection and lending; US growth and conservative balance sheet.
CSL (top holding): Biotech therapies; investments in supply chain and innovation.
Fineos Corporation Holdings: Insurance software; capitalizing on digital transformation.
Maas Group (top holding): Industrial diversified; location-based moats in quarries.
Macquarie Group (top holding): Financial services; culture of profitability and growth focus.
National Australia Bank: Bank with retail strength; supportive market structure.
Next DC: Data centre operator; riding cloud and AI demand.
oOh!media: Out-of-home advertising; shifting to digital for better metrics.
PWR Holdings Ltd: Performance cooling solutions; innovation in motorsport and EVs.
REA Group: Real estate portal; dominant in Australia with offshore potential.
ResMed: Sleep and respiratory devices; large under-penetrated market.
Rio Tinto Limited: Miner with metals for electrification; superior asset quality.
SEEK: Online employment marketplace; international exposure.
WiseTech Global (top holding): Logistics software; low penetration offers runway.
Xero: Cloud accounting software; market share gains in SMB segment.

Analysis and Manager InsightsThe portfolio is heavily weighted toward Australian financials and tech, reflecting a bet on structural growth themes like digital disruption, healthcare innovation, and commodity demand for electrification (e.g., via miners like BHP and Rio Tinto). Financials (26%) provide stability through established banks with wide moats, while IT (19%) and Health Care (17%) offer higher growth potential but introduce volatility, as seen in January's underperformance from AI fears impacting stocks like Xero, WiseTech, and Fineos.

Positive contributors in January included PWR (up 19% on a new contract), commodity-exposed BHP and Rio Tinto, and ResMed (solid results alleviating drug-related concerns). Detractors were mainly software firms, but the manager sees this as a "knee-jerk" reaction and anticipates reaffirmation of fundamentals in upcoming reports. Recent moves include exiting Reece (plumbing supplier) after a 12% return and increasing exposure to Commonwealth Bank, viewing it as undervalued post-decline.

Overall, the fund maintains a growth-oriented stance with defensive elements from diversified sectors. Holdings emphasize companies with strong competitive advantages, innovation, and exposure to global trends. For the most current NAV or changes, check NZX announcements, as markets can shift quickly. If you'd like deeper analysis on specific holdings or comparisons, let me know!

Crikey..... and some said BRM was a 'safe' investment.......(thankfully not holding)

https://www.nzx.com/announcements/467530

Wonder if Robbie still has high hopes for Cochlear

Down 63% YTD (from Jan 1st that is)

Wisetech has collapsed
CSL has collapsed.
Cochlear has collapsed.
Is BRM in a short term funk?
I assume due to these large caps and a few others the ASX200 is flat for the last year.

Wisetech on a roll today

Take it BRM still holding

Quote from: winner (n) on Jun 24, 2026, 03:51 PMWisetech on a roll today

Take it BRM still holding

Yeap holding all the way down from ~ $120 when in late 2024 I publicly called out Robbie Urquart in the annual meeting on why he was holding it on a triple digit PE.  I think they did trim down a bit on the CEO scandal but still 6% of their portfolio despite that and the share price savaging its had.
Lost their way completely...keep holdings stocks even when they're trading on PE's of 4-5 times the EPS growth rate.