Barramundi’s August Surge Puts Portfolio Strength Back in Focus

August Rally Leaves Barramundi Below Asset Value

Barramundi Limited (NZX:BRM) enjoyed its strongest monthly showing in the latest update, but the market has yet to fully reflect it. The listed investment company reported a 6.7% adjusted NAV return for August, while its gross portfolio return reached 6.9%, well ahead of the 1.9% return from its S&P/ASX 200 benchmark hedged 70% into New Zealand dollars.

At 31 August, Barramundi’s share price was $0.50 against an adjusted NAV of $0.58, leaving the shares at a 13.2% discount. The share price delivered a 6.1% total shareholder return for the month, below the NAV gain, illustrating that the portfolio’s recovery was stronger than the listed vehicle’s rerating.

CSL and Industrial Holdings Drive Monthly Gains

The sharpest contributions came from CSL, which rose 39% in Australian dollar terms, Ansell at 26%, PWR Holdings at 16%, Fineos at 11% and CAR Group at 6%. Barramundi said CSL’s Behring portfolio recovered in the second half of FY26, led by 7% growth in immunoglobulin therapies, although that improvement is expected to be partly offset by a significant decline in Vifor during FY27.

PWR Holdings’ 16% gain followed what Barramundi described as an exceptional FY26 result. Revenue rose 31%, with Motorsport up 45% and Aerospace up 31%; the aerospace order book reached record levels and supports expected revenue growth of more than 30% in FY27. The manager also highlighted CAR Group’s 11% constant-currency underlying profit growth and Ansell’s 16% increase in underlying net profit.

NextDC Adds Growth While Brambles Carries Execution Risk

NextDC was a quieter share-price contributor, rising 3%, despite signing 495 megawatts of capacity during FY26 compared with 245MW across its previous 15 years. Barramundi said the contracts are expected to convert into revenue and earnings over the next three years, with FY27 guidance calling for 55% revenue growth at the midpoint and 60% underlying EBITDA growth. The company is guiding to $5.25 billion to $5.75 billion of FY27 capital expenditure as it accelerates data-centre construction.

Brambles provided a more measured counterpoint. Its FY26 revenue increased 6% and underlying net profit rose 10%, but US repair-capacity constraints continued to limit growth and add costs. The company expects FY27 revenue growth of 2% to 4% in constant currency and EBIT growth of 2% to 6%, with growth weighted towards the second half as repair issues are resolved.

Longer-Term Returns Still Lag the Benchmark

August’s result improves a much weaker longer-term record. Barramundi’s adjusted NAV return was negative 14.3% over one year and just 0.2% annualised over three years, compared with benchmark returns of 6.2% and 12.3% respectively. The portfolio remains concentrated in financials at 28% and information technology at 21%, while its five largest positions are WiseTech, Xero, BHP Group, Macquarie Group and ANZ Group.

The portfolio had no gearing at month-end, although the company is permitted to borrow up to 20% of gross asset value. Its bank holdings were a drag in August, with CBA down 8% and NAB down 7%, as softer housing conditions and weaker mortgage demand contributed to modestly lower expectations for future bank earnings growth.

The next test is whether August marks a durable improvement or simply a strong reporting-season bounce. NextDC’s ability to fund and execute its enlarged construction programme, Brambles’ progress in restoring US repair capacity, and the company’s early-2027 decision on its US Serialisation+ initiative will provide more tangible evidence than one month’s performance.