MLN – October 2017 monthly update

1
Monthly Update
October 2017
MLN NAV
$
0.93
SHARE PRICE
$
0.78
DISCOUNT
16.2
%
as at 30 September 2017
A word from the Manager – Quality Pays
Fisher Funds’ Chief Investment Officer, Frank Jasper
explains what ‘quality’ means when looking to invest.
We talk a lot about “quality” when we consider potential
investments for the Marlin portfolio. The idea of quality is
central to the STEEPP investment process which is the lens we
use whenever we look at a company.
One of the most important measures of a company’s quality
are the returns that it is able to generate on each dollar that
it invests on behalf of shareholders. This is common sense.
If a company can earn a 15% return on every dollar invested
versus another company that only earns 5%, it is pretty
obvious that the company generating the 15% return is a
higher quality company.
While this may be obvious, it understates just how important
high returns on invested capital are to creating future value
for shareholders.
Let’s imagine two companies. Both of our mythical companies
earn $100 profit this year. Typically a company would pay
some of these profits out as dividends and retain some of
these profits to fuel future growth.
For our example let’s assume that half of all profits are
paid out. Let’s go one step further and assume one of our
companies, Company 1, is high quality and generates a 15%
return on every dollar invested. The other company, Company
2, is a lower quality company which has a 5% return on
invested capital.
As Warren Buffett says “time is the friend of the wonderful
company and the enemy of the mediocre.” The idea is aptly
demonstrated by our two mythical companies. Company 1
generates strong returns on every dollar of capital it retains.
These higher returns mean more profits over time. Company
1 is able to grow future profits rapidly. Company 2, the poorer
quality company, grows future profits at a much slower clip.
The difference is stark. In our example, using our assumption
of a consistent rate of return on invested capital and a
50% dividend pay out, the profits of Company 1 more than
double over the next ten years. Comparatively, profits for the
lower quality Company 2, rise only 28% over the same time.
Quality pays — Profits over time
Frank Jasper
Chief Investment Officer,
Fisher Funds
It’s pretty clear which of these two companies you would
want to own. Quality really does pay off in the long run and
it’s these quality companies that we seek to include in the
Marlin portfolio.
Profil ($)
220
200
180
160
140
120
100
Company 1 — High Quality
0 1 2 3 4 5 6 7 8 9 10
Company 2 — Lower Quality
Source: Fisher Funds

Sector Split
as at 30 September 2017
Key Details
as at 30 September 2017
FUND TYPE
Listed Investment Company
INVESTS IN
Growing international companies
LISTING DATE
1 November 2007
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO SIZE
25-35 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
$0.87
SHARES ON ISSUE
119m
MARKET CAPITALISATION
$93m
GEARING
None (maximum permitted 20%
of gross asset value)
Performance
to 30 September 2017
2
28
%

TECHNOLOGY
10
%
INDUSTRIALS
23
%

CONSUMER
25
%

HEALTHCARE
Geographical Split
as at 30 September 2017
20
%
WEST EUROPE
71
%
NORTH AMERICA
The Marlin portfolio also holds cash.
8
%
FINANCIALS
3
%

ENERGY
^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
Non-GAAP Financial Information
Marlin uses non-GAAP measures, including adjusted net asset value, gross performance return and total shareholder return. The rationale for using such non-GAAP measures is as follows:
»adjusted net asset value – the underlying value of the investment portfolio adjusted for capital allocation decisions,
»gross performance return – the Manager’s portfolio performance in terms of stock selection and hedging of currency movements, and
»total shareholder return – the return to an investor who reinvests their dividends, and if in the money, exercises their warrants at warrant maturity date for additional shares.
All references to including adjusted net asset value, gross performance return and total shareholder return in this monthly update are to such non-GAAP measures. The calculations applied to non-GAAP measures
are described in the Marlin Global Non-GAAP Financial Information Policy. A copy of the policy is available at http://marlin.co.nz/about-marlin/marlin-policies/
6
%

ASIA
1 Month3 Months1 Year3 Years
(accumulated)
Since Inception
(accumulated)
Corporate Performance
MLN Adjusted NAV+0.7% +6.2% +17.7% +29.6% +76.9%
Total Shareholder Return+1.1% +1.1% +9.4% +24.6% +58.3%
Manager Performance
Gross Performance+1.2%+7.0%+23.0%+45.3%+149.5%
Benchmark Index^+2.3%+6.1%+20.3%+52.7%+103.6%

September’s Biggest Movers in local currency terms
Typically the Marlin portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 22 stocks and cash.
CORE LABORATORIES
+12
%
BREMBO
+9
%
HEXCEL
+7
%
EBAY
+6
%
SARINE
TECHNOLOGIES
-16
%
5 Largest Portfolio Positions
as at 30 September 2017
PAYPAL
7
%
ALPHABET
6
%
MASTERCARD
5
%
LKQ CORPORATION
5
%
ALIBABA GROUP
4
%
Total Shareholder Return
to 30 September 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 25 and 35 quality 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
»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
Marlin’s portfolio is managed
by Fisher Funds Management
Limited. Ashley Gardyne (Senior
Portfolio Manager), Frank Jasper
(Chief Investment Officer) and
Chris Waters (Senior Investment
Analyst) have prime responsibility
for managing the Marlin portfolio.
Together they have 50 years
combined experience and are
very capable of researching
and investing in the quality
global companies that Marlin
targets. Fisher Funds is based in
Takapuna, Auckland.

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 (Chair),
Carol Campbell and Andy
Coupe; and non-independent
director Carmel Fisher.