BRM - New Warrant Issue for Barramundi

[Left Field]

Crikey what a train wreck.......I feel sorry for any remaining holders.

Interesting to go back and read the past ramping on this thread. Deja vu all over again.

( Disc - never held.)

[Basil]

Their track record used to be quite good but they've certainly dropped the ball in a big way in recent years.
I warned about 2 years ago I thought they had lost their mojo.

[Otago K]

Yep, it's a disaster all round, but the Fisher managed funds have underperformed for years and the Board has done nothing about it and kept re-appointing Fisher. Is this the point where they finally give them heave-ho? I'm not a holder but I would want to see a change in fund manager and strategy together with a reduction in fees. If not, then just wind the funds up and pay shareholders out at NAV rate.

If my recall is correct the board have said they will talk to the fisher funds manager about the sub performance, didn't detect at a glance a hint they might consider to terminate the contract though.

[snapiti]

the current discount to NAV is the largest I can recall, not sure that is fully warranted however their performance in the past 12 month compared to the broader market is dreadful.
BRM makes up 5% of my investments, just pleased I cut that from 15% late last year, performance for the period I had held those shares was ok. I mainly sold down based on the lazy way the portfolio was being managed (not much change to portfolio holdings for many years and the number of extremely high PE stocks they held )   

[LoungeLizard]

Todays Annual Report, together with the usual expressions of "disappointment" states that :

"At the time of writing...the Barramundi Board is engaged in a comprehensive review of the performance of the Manager of its obligations under the Management Agreement. The outcome of that review will not be known until after the issuance of this annual report."

I can't for the life of me see how the Board under its duty of care to shareholders could renew the 5 year contract that it has with Fisher. That goes for MLN and KFL as well. Surely they have to call time, and appoint another Manager. It's not just this year that these funds have performed poorly. The total shareholder return for BRM for the last five years has been -5.7% compared to +9% for the benchmark index. I reckon a chimpanzee could do better by throwing darts at a dartboard of NZX-listed companies. Thinking about it, maybe that's what Fisher do?

I can see the SP rebounding if the Board takes action and a new Manager has a portfolio reset. I might be interested in KFL in particular if that was the case. But if the Board re-appoints Fisher I think we'll see a further decline in the SP. It's incredible to think that the IPO's for all the Fisher funds in 2004 was $1. Over 20 years later look where they all are now!
 

[Shareguy]

Yes agree LL. A new manager is needed but doubt they will move away from Fishers. They call themselves active managers but note they seem to buy and hold with few changes. Don't see how they can justify the fees and wonder with so few portfolio changes what they do all day. Fishers Kiwi saver was not much chop either with their fund updates boring waffle and not worth reading. Have recently moved the family's Kiwi saver to Milford.