MLN – February 2017 monthly update

1
Monthly Update
February 2017
MLN NAV
$
0.82
SHARE PRICE
$
0.80
DISCOUNT
2.8
%
as at 31 January 2017
Carmel Fisher
Managing Director,
Fisher Funds
A word from the Manager — Making portfolios great
Welcome to 2017, it’s good to be talking to you again. We
haven’t been in touch since mid-December; not that we would
have got a word in, what with the countless column centimetres
devoted to all things Trump.
With each passing week I am asked “what do you make of this
Trump thing?” The question is asked not with a social or moral
response in mind, but rather, what does Trump’s presidency
mean for investment markets and economic matters? My
response is usually short, “I don’t know, and neither does
anyone.” I don’t mean to sound rude, but my view is by all
means have an opinion on the man, his personality, his hairstyle
and his utterings, but try not to let that opinion, or anyone
else’s, spill into your investment thinking.
Of course Trump is big news; most newly elected US Presidents
are. He’s controversial, but arguably, so was President Barack
Obama when he took possession of the White House keys
eight years ago.
Obama’s reign wasn’t expected to be good for share markets
as he was not exactly pro-business. But guess what? The US
share market lifted nearly 300% during his time in office.
There’s no denying Trump is pro-business, and that explains
why the US share market rallied after his election. Though, as
with all presidents, it’s the doing not the talking that matters
in the end. So far, he’s walked the talk on several significant
campaign issues such as the Mexican wall and immigration
restrictions, but it remains to be seen whether — and how
soon — Trump implements the corporate and personal tax
cuts that should stimulate economic growth and underpin the
US share market. We are going to be distracted by politics for
a long while. Trump has only begun to unveil his policies and
you just know there’s a lot of rhetoric to bombard us yet. We’ve
got a few European elections happening this year, as well as
our own domestic election now set for September, so political
distractions are here to stay.
But being fixated with politics, just like being fixated with
anything really, can lead to a loss of perspective and a focus on
the wrong things, leaving the right things unattended.
One financial columnist said recently, “Trump’s stated objective
is to Make America Great Again. Our objective should be to
make our portfolios great, all the time.” I agree.
With that in mind, our focus has been on the businesses we
own in your portfolios and the mix of currencies and asset
classes that combine to give you diversification.
Each single investment and each asset class will at some
point be affected by politics, as interest rates respond to
economic trends and policies. Our goal is to be positioned
correctly so that we are on the right side of the trend, or at
least, if our investments temporarily fall out of favour, we
remain confident that the intrinsic value is intact and they
remain appropriate assets to own over the long term.
It pays to remember that just as we are getting our heads
around the Trump effect on our clients’ portfolios, the
managers of our portfolio companies are doing the same
thing. They too will be positioning their businesses to
ensure they remain competitive and that their strategies
will withstand whatever comes out of a President’s mouth or
keyboard.
I read recently that corporate leaders in the US are “learning
to live with Mr Trump, or ‘normalising’, him in the current
jargon”. This is partly necessity — his threats could do them
damage — and it’s partly genuine enthusiasm as he plans to
cut their personal and their corporate income taxes. While
analysts, media and Democrats remain suspicious and even
hostile towards Trump, I am at least pleased (with my investor
hat on) that corporate America is coming to terms with the
new political regime.
We don’t need to like Trump or his politics — and please do
not read any political view into my comments; I don’t have
one. Maybe we just need to ‘normalise’ him and return our
focus to the more important parts of our lives.

Sector Split
as at 31 January 2017
Key Details
as at 31 January 2017
FUND TYPE
Listed Investment Company
INVESTS IN
Growing international companies
LISTING DATE
1 November 2007
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO SIZE
30-40 stocks
INVESTMENT CRITERIA
Long-term growth
PERFORMANCE
OBJECTIVE
Long-term growth of capital and
dividends
TAX STATUS
Portfolio Investment Entity (PIE)
MANAGER
Fisher Funds Management
Limited
MANAGEMENT
FEE RATE
1.25% of gross asset value
(reduced by 0.10% for every 1% of
underperformance relative to the
change in the NZ 90 Day Bank Bill
Index with a floor of 0.75%)
PERFORMANCE
FEE HURDLE
Changes in the NZ 90 Day Bank
Bill Index + 5%
PERFORMANCE FEE
15% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$0.85 per share
SHARES ON ISSUE
117m
MARKET CAPITALISATION
$93m
GEARING
None (maximum permitted 20%
of gross asset value)
1 Month3 Months1 Year3 Years
(accumulated)
Since Inception
(accumulated)
MLN Adjusted NAV*(0.4%)(0.4%)(0.1%)+9.6% +47.3%
Total Shareholder Return*+0.0% +3.5% +7.7% +28.1% +51.7%
Gross Performance^+0.4%+0.8%+4.0%+21.1%+101.4%
Benchmark Index^^(0.4%)+6.0% +13.8% +39.5% +77.7%
Performance
to 31 January 2017
2
24
%
CONSUMER
DISCRETIONARY
14
%
INDUSTRIALS
19
%
HEALTHCARE
23
%
INFORMATION
TECHNOLOGY
Geographical Split
as at 31 January 2017
2
%
JAPAN
7
%
ASIA (EX JAPAN)
21
%
WEST
EUROPE
5
%
FINANCIALS
65
%
NORTH AMERICA
The Marlin portfolio also holds cash.
6
%
TECHNOLOGY
2
%
CONSUMER
STAPLES
^ Gross of fees and tax and adjusting for capital management initiatives
^^ Benchmark index: World Small Cap Gross Index until 30 September 2015 & S&P Large Mid
Cap/S&P Small Cap Index (50% hedged to NZD) from 1 October 2015
*Definitions of non-GAAP measures:
Adjusted Net Asset Value (Adjusted NAV)
The adjusted NAV per share represents the total assets of Marlin Global (investments and cash) minus
any liabilities (expenses and tax), divided by the number of shares on issue. It adds back dividends paid
to shareholders and adjusts for:
»the impact of shares issued under the dividend reinvestment plan at the discounted
reinvestment price;
»shares bought on-market (share buybacks) at a price different to the NAV, and;
» warrants exercised at a price different to the NAV at the time exercised.
Adjusted NAV assumes all dividends are reinvested in the company’s dividend reinvestment plan and
excludes imputation credits.
The directors believe this metric to be useful as it reflects the underlying performance of the
investment portfolio adjusted for dividends, share buybacks and warrants, which are capital allocation
decisions and not a reflection of the portfolio’s performance.
Total Shareholder Return (TSR)
The TSR combines the share price performance, the warrant price performance (when warrants are on
issue), the net value of converting warrants into shares and dividends paid to shareholders.
TSR assumes:
»all dividends paid are reinvested in the company’s dividend reinvestment plan at the
discounted reinvestment price and exclude imputation credits, and;
»all shareholders that have received warrants (for free), have subsequently exercised their
warrants at the warrant expiry date and bought shares (if they were in the money).
The directors believe this metric to be useful as it reflects the return of an investor who reinvests their
dividends and, if in the money, exercises their warrants at warrant maturity date for additional shares.
No metric has been included for investors who choose other investment options.
3
%
ENERGY

January’s Biggest Movers in New Zealand dollar terms
Typically the Marlin portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 28 stocks and cash.
BIOTEST
+17
%
ALIBABA
+10
%
UNITED PARCEL
SERVICE
-9
%
BLACKHAWK
NETWORK HOLDINGS
-10
%
COGNIZANT TECHNOLOGY
SOLUTIONS
-11
%
5 Largest Portfolio Positions
as at 31 January 2017
ALPHABET
6
%
PAYPAL
5
%
MASTERCARD
5
%
ALIBABA
4
%
EBAY
4
%
Total Shareholder Return
to 31 January 2017
3
Nov
2007
Nov
2008
Nov
2009
Nov
2010
Nov
2011
Nov
2012
Nov
2014
Nov
2013
Share Price/Total Shareholder Return
Share PriceTotal Shareholder Return
Nov
2015
$
1.00
$
1.20
$
0.8 0
$
0.60
$
0.40
$
1.60
$
0.20
$
0.00
$
1.40
Nov
2016

Disclaimer: The information in this update has been prepared as at the date noted on the front page. The information has been prepared as a general summary of the matters covered only, and it is by
necessity brief. The information and opinions are based upon sources which are believed to be reliable, but Marlin Global Limited and its officers and directors make no representation as to its accuracy
or completeness. The update is not intended to constitute professional or investment advice and should not be relied upon in making any investment decisions. Professional financial advice from an
authorised financial adviser should be taken before making an investment. To the extent that the update contains data relating to the historical performance of Marlin Global Limited or its portfolio
companies, please note that fund performance can and will vary and that future results may have no correlation with results historically achieved.
Marlin Global Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 484 0365 | Fax: +64 9 489 7139
Email: enquire@marlin.co.nz | www.marlin.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz | www.computershare.com/nz
About
Marlin Global
Marlin is an investment company
listed on the New Zealand Stock
Exchange. The company gives
shareholders an opportunity to
invest in a diversified portfolio
of between 30 and 40 growing
international companies (excluding
New Zealand and Australia)
through a single, professionally
managed investment. The aim
of Marlin is to offer investors
competitive returns through capital
growth and dividends.
Capital Management Strategies
Regular Dividends
»Quarterly distribution policy introduced in
August 2010
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Marlin may include dividends
received, interest income, investment gains
and/or return of capital
» This policy is well received by shareholders as it
provides an attractive and regular return that is
referable to the NAV
»Shareholders who prefer to have increased
capital rather than a regular income stream have
the opportunity to participate in the company’s
dividend reinvestment plan (DRP)
»Shares issued to DRP participants are at a 3%
discount to market price
»Marlin became a portfolio investment entity on
1 October 2007. As a result, dividends paid to
New Zealand tax resident shareholders have not
been subject to further tax
Share Buyback Programme
»Marlin has a buyback programme in place allowing
it (if it elects to do so) to acquire up to 5.7m of its
shares on market in the year to 31 October 2017
»Shares bought back by the company are held as
treasury stock
» Shares held as treasury stock are available to be
re-issued for the dividend reinvestment plan
Warrants
»Warrants put Marlin in a better position to grow
further, improve liquidity, operate efficiently
and pursue other capital structure initiatives as
appropriate
»A warrant is the right, not the obligation, to
purchase an ordinary share in Marlin at a fixed price
on a fixed date
»There are currently no warrants on issue

Management
The Marlin Senior Portfolio Manager,
Roger Garrett, announced his
retirement recently. Fisher Funds’
senior investment analyst Ashley
Gardyne, has been appointed to the
role of Senior Portfolio Manager for
Marlin, effective 01 January 2017.
Ashley joined the international
team in 2013 and has been deeply
involved with the Marlin portfolio
strategy since. Ashley is supported
by Senior Investment Analysts,
Chris Waters and Frank Jasper.
Roger will provide continuity and
analytical support until a new senior
investment analyst is appointed.

Board
The Manager has authority
delegated to it from the Board
to invest according to the
Management Agreement and
other written policies. The Board
of Marlin comprises independent
directors Alistair Ryan (Chairman),
Carol Campbell and Andy
Coupe; and non-independent
director Carmel Fisher.