MLN – November 2017 monthly update

1
Monthly Update
November 2017
MLN NAV
$
0.98
SHARE PRICE
$
0.82
DISCOUNT
15.9
%
as at 31 October 2017
A word from the Manager — Looking for Diversity
Marlin’s net asset value was up by 4.8% during October.
Performance was supported by a weak New Zealand dollar,
which fell 5.2% against the US dollar during the month
following the Labour / NZ First election victory. Financial year-
to-date gross performance is a very healthy 12.5%.
Global markets were strong during October, supported by
strong economic data, a good start to US earnings season and
an increased focus on potential corporate tax cuts in the US.
US markets hit fresh all-time highs, with the S&P 500 Index up
2.2% during the month. Europe also gained, with the Stoxx 600
Index up 1.8%.
Stock market news in the month was focused on corporate
earnings, with a number of large cap tech stocks including
Amazon, Alphabet, Microsoft and Netflix announcing better
than expected results and each rising significantly more than
the market.
While the majority of earnings results for companies in
the Marlin portfolio were strong we did have two notable
disappointments.
Expedia’s third quarter results fell short of expectations partly
impacted by the recent hurricanes in the US and Caribbean
and from weaker than expected results in their Trivago
subsidiary. However, what concerned the market more was
guidance for 2018 being weaker than expected. This was for
two reasons. First the company is hiring more sales staff to
increase the number of hotels on its website. Expedia is also
investing heavily in its recently acquired HomeAway business
(the owner of Bookabach in New Zealand). While the 13% share
price decline in October is disappointing, we believe these
investments will ultimately create a more valuable business.
More choice will ultimately attract more customers as travellers
increasingly seek to book travel online.
Blackhawk Network distributes gift cards via supermarkets
(think iTunes gift cards or movie vouchers). While revenue grew
19% year-on-year and earnings per share were up 14%, the
company guided to lower than expected growth for the rest of
the year which saw the share price fall. Of most concern, is the
increasing competition from key competitor Incomm. While
these pressures are unfortunate, Blackhawk has faced them
before, successfully beaten them off and we believe it will
again. We are happy to retain our existing investment.
There were no new stock additions or exits during October.
We trimmed our weighting in PayPal from 6% to 5% with the
company’s share price having increased over 80% so far this
year. We also marginally increased our weighting in Signature
Bank to 3.5% following its first set of results since we added
the company to the portfolio in July.
Signature Bank is the first bank we have added to the Marlin
portfolio. It is a small regional US bank with a strong track
record of growth and credit control. We are aware of the
strong performance of technology stocks over the last year
and our exposure to them. Over the year we have spent a
lot of time researching quality businesses in the financial
and industrial sectors to add diversity to the Marlin portfolio.
While we have done a lot of work in these sectors, not many
businesses meet our quality threshold and those that do
have often, at current share prices, offered weak prospective
returns. That said, Signature Bank, Hexcel, a leading supplier
of carbon fibre composites to the aerospace industry, and
Core Laboratories are somewhat recent additions which met
our criteria and add such diversity.
We continue to look for new opportunities. While market
valuations in the US are elevated and attractive opportunities
are becoming harder to find, we are still finding enough
ideas to research in certain sectors and geographies. We
have recently been looking at a number of market leading
businesses in Europe and selected emerging markets. The
retail and consumer sectors are also presenting interesting
opportunities, partly driven by the
panic caused by Amazon.
Ashley Gardyne
Senior Portfolio Manager, Marlin

Sector Split
as at 31 October 2017
Key Details
as at 31 October 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
118m
MARKET CAPITALISATION
$97m
GEARING
None (maximum permitted 20%
of gross asset value)
Performance
to 31 October 2017
2
27
%

TECHNOLOGY
10
%
INDUSTRIALS
23
%

CONSUMER
25
%

HEALTHCARE
Geographical Split
as at 31 October 2017
20
%
WEST EUROPE
71
%
NORTH AMERICA
The Marlin portfolio also holds cash.
9
%
FINANCIALS
^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 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 Non-GAAP Financial Information Policy. A copy of the policy is available at http://marlin.co.nz/about-marlin/marlin-policies/
5
%

ASIA
1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return +5.1% +5.0% +13.6% +9.0% +5.2%
Adjusted NAV Return+4.7% +10.0% +25.2% +10.9% +6.4%
Manager Performance
Gross Performance+5.1%+10.7%+31.2%+15.3%+10.1%
Benchmark Index^+5.0%+10.4%+27.5%+16.3%+7.9%
3
%

ENERGY

October’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.
AMAZON
+15
%
PAYPAL
+13
%
EXPEDIA
-13
%
SARINE
TECHNOLOGIES
-17
%
BLACKHAWK
NETWORK
-22
%
5 Largest Portfolio Positions
as at 31 October 2017
ALPHABET
7
%
MASTERCARD
6
%
PAYPAL
5
%
LKQ CORPORATION
5
%
COGNIZANT
TECHNOLOGY
SOLUTIONS
5
%
Total Shareholder Return
to 31 October 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
$
1.80
$
0.20
$
0.00
$
1.40
Nov
2016
$
1.60

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 5.9m of its
shares on market in the year to 31 October 2018
»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) and Chris
Waters (Senior Investment
Analyst) have prime responsibility
for managing the Marlin
portfolio. They have significant
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.