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Capital Management Strategies

Dividends | Share Buybacks | Warrants

One of the key ways the Board can add value for shareholders is through proactive capital management strategies. The objective is to increase total shareholder return and maintain the discount/premium to NAV within a reasonable range.

The Board of Barramundi have implemented the following capital management strategies:

  • Regular dividend programme
  • Opportunity to partake in our Dividend Reinvestment Plan
  • Share buyback programme
  • Warrant issues

Dividends

In August 2009, Barramundi announced a new long-term distribution policy. Under the policy Barramundi will pay shareholders 2% per quarter of its average NAV.  

The payments are made in March, June, September and December.

March 2020 1.45 cps
December 2019 1.44 cps
September 2019 1.39 cps
June 2019 1.31 cps
March 2019

1.25 cps

December 2018

1.42 cps

September 2018

1.40 cps

A full history of Barramundi dividends is available.

DOWNLOAD DIVIDEND HISTORY »

Barramundi has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Barramundi dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.

Imputation credits will be attached to dividends to the fullest extent possible.

Dividends paid by Barramundi may include dividends received, interest income, investment gains and/or return of capital.

Dividend Reinvestment Plan (DRP)

The DRP offers shareholders an alternative to cash dividends. Shareholders who don't require the regular income can elect to apply all or part of any cash dividends in subscribing for fully paid ordinary shares.

The advantage of enrolling in the plan is that shares issued under the DRP are at a 3% discount to the current market price (being the weighted average selling price on the first five days immediately following the ex-dividend date). Furthermore, shares issued under the DRP do not incur brokerage costs.

How to participate in the DRP:

  • Read the DRP Offer Document
  • Download the Participation Notice
  • Post or email the completed Participation Notice to Barramundi's Share Registrar:
    Computershare Investor Services Limited
    Level 2, 159 Hurstmere Road
    Takapuna
    Private Bag 92119
    Auckland 1142
    Email: enquiry@computershare.co.nz

Share Buybacks

The company will from time to time buyback its own shares on market if in the opinion of the Board the Barramundi share price does not appropriately reflect the company's underlying NAV.

Buybacks work well in circumstances where excessive discounts to NAV exist, as it adds value for shareholders by purchasing undervalued shares in the company. Barramundi will only buy back shares if the discount to the last published net asset value is not less than 8%.

The buyback period runs for 12 months from the date it is announced to the market. We currently have a share buyback policy in place.

Shares purchased under the policy are held as treasury stock and are available to be re-issued under the dividend reinvestment plan or to pay performance fees to the Manager.

Warrants

On 25 October 2019, Barramundi warrant holders had the right to convert their warrants into ordinary Barramundi shares at an exercise price of $0.59 per warrant. 

The new shares were allotted to warrant holders on 1 November 2019. All new shares have the same rights as current Barramundi shares, including participating in the company's quarterly dividend policy.

The remaining warrants which were not exercised have now lapsed and all rights have now expired.

The additional funds will be invested in Barramundi's current investment portfolio of stocks, in similar proportions to the existing portfolio.

 

Previous warrant issues:

 

Exercise Price

Exercise Date / Exercise Period

Total % Exercised

BRMWE

$0.59

25 October 2019

74%

BRMWD

$0.58

24 November 2017

41%

BRMWC

$0.62

6 May 2016

49%

BRMWB

$0.75

1 December 2009 to 27 October 2011

17%

BRMWA

$1.00

29 October 2007 to 18 February 2008

1%

What is a warrant?

A warrant is the right, not the obligation to purchase an ordinary share in Barramundi at a fixed price on a fixed date.