KFL – June 2018 monthly update

1
Monthly Update
June 2018
KFL NAV
$
1.49
SHARE PRICE
$
1.38
DISCOUNT
7.4
%
as at 31 May 2018
A word from the Manager
The bout of market volatility in February and March seems
like a distant memory now with the New Zealand market
backing up the 1.5% rebound in April with a further 2.5%
rally in May. The market reached fresh all-time highs
during the month. The Kingfish portfolio was up 4.2% on a
gross performance basis for the month.
Market performance was driven by the IT and utilities
sectors, which were up 8% and 5% respectively. Kingfish
portfolio company, Vista Group, which is classified as an
IT stock was up 17% after announcing its entry into the
Japanese market and reminding the market of the long
growth runway for its Movio business.
Our Fisher Funds STEEPP investment philosophy
aligns naturally to investments in companies like Vista
Group. Vista Group is a quality company with a strong
management team and a business model that has a
number of competitive advantages. Our investment
philosophy is longer-term focused – meaning, we expect
our investment approach to deliver strong results over
time, and that short term blips in a company’s performance
will not necessarily change our view. An example of this is
Fisher & Paykel Healthcare.
Fisher & Paykel Healthcare is a core portfolio company
which has an excellent track record. It’s management team
is world class and there is growing demand for the Fisher
& Paykel Healthcare products as the worldwide population
ages and the incidence of chronic respiratory diseases and
obesity rises.
In May, Fisher & Paykel Healthcare reported its most
recent result that revealed slower underlying earnings
growth than some in the market were expecting. While
its hospital business continued to grow exceptionally
strongly throughout the second half of the period, Fisher
& Paykel Healthcare’s homecare business was weaker
than expected given it is driven by product cycles.
This means that its products are typically developed,
brought to market and then eventually removed from
the market as a new product is released. At the moment,
Fisher & Paykel Healthcare is in the latter stages of the
current cycle, while its competitors are at an earlier
stage - having recently launched products. Product cycle
companies typically grow earnings faster at the earlier
stages of the cycle when there is more appetite for the
newly released products.
We are confident in the quality of Fisher & Paykel
Healthcare’s research and development and its next
round of home care product releases will likely support
an acceleration in earnings growth. Why? Fisher &
Paykel Healthcare has a proven record of delivering high
quality innovative products which take market share. Its
sleep apnea mask division grew revenue at an average
of 20% for the four years to March 2017, far outstripping
market growth. The company’s new sleep apnea mask is
likely to be launched in the current year and we expect
Fisher & Paykel Healthcare’s long term research and
development track record to be clearly exhibited in
another quality product. Additionally, we expect the
rapidly growing hospital business to continue to deliver.
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
Sector Split
as at 31 May 2018
Key Details
as at 31 May 2018
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO SIZE
15-25 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 + 7%
PERFORMANCE FEE
15% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$1.44
SHARES ON ISSUE
192m
MARKET CAPITALISATION
265m
GEARING
None (maximum permitted 20%
of gross asset value)
The Kingfish portfolio also holds cash.
5
%
28
%
HEALTHCARE
11
%

UTILITIES
INFORMATION
TECHNOLOGY
28
%
INDUSTRIALS
9
%
CONSUMER
DISCRETIONARY
10
%
CONSUMER
STAPLES
3
%

MATERIALS
Performance
to 31 May 2018
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Corporate Performance
Total Shareholder Return+3.8%+5.3%+16.0%+8.9%+11.6%
Adjusted NAV Return+4.1%+4.5%+16.9%+13.6%+12.3%
Manager Performance
Gross Performance Return+4.2%+4.3%+18.9%+16.2%+15.0%
S&P/NZX50G Index+2.5%+3.4%+16.7%+14.0%+13.9%
Non-GAAP Financial Information
Kingfish uses non-GAAP measures, including adjusted net asset value, adjusted NAV return, 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 after fees and tax,
»adjusted NAV return – the net return to an investor after fees and tax,
»gross performance return – the Manager’s portfolio performance in terms of stock selection, 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, adjusted NAV return, 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 Kingfish Non-GAAP Financial Information Policy. A copy of the policy is available at http://kingfish.co.nz/about-kingfish/kingfish-policies/

Total Shareholder Return
to 31 May 2018
Mar
2004
Mar
2005
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2014
Mar
2015
Mar
2013
Mar
2016
Share Price/Total Shareholder Return
$
2.50
$
3.00
$
2.0 0
$
1.50
$
1.00
Share PriceTotal Shareholder Return
$
4.00
$
0.50
$
0.00
Mar
2017
$
3.50
Mar
2018
May’s Biggest Movers
Typically the Kingfish portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 11 stocks and cash.
5 Largest Portfolio Positions
as at 31 May 2018
VISTA GROUP
+17
%
RESTAURANT BRANDS
+11
%
RYMAN HEALTHCARE
+8
%
INFRATIL
+7
%
THE A2 MILK COMPANY
-11
%
FISHER & PAYKEL
HEALTHCARE
12
%
MAINFREIGHT
11
%
RYMAN HEALTHCARE
9
%
FREIGHTWAYS
8
%
THE A2 MILK COMPANY
8
%
3

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 Kingfish 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 Kingfish 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.
Kingfish Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 489 7094 | Fax: +64 9 489 7139
Email: enquire@kingfish.co.nz | www.kingfish.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 Kingfish
Kingfish 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 15 and 25 quality
growing New Zealand companies
through a single, professionally
managed investment. The aim
of Kingfish is to offer investors
competitive returns through
capital growth and dividends.
Capital Management Strategies
Regular Dividends
»Quarterly distribution policy introduced in
June 2009
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Kingfish 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
»Kingfish 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
»Kingfish has a buyback programme in place allowing
it (if it elects to do so) to acquire up to 9.4m 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 and to
pay performance fees
Warrants
»Warrants put Kingfish in a better position to grow
further, operate efficiently and pursue other capital
structure initiatives as appropriate
»A warrant is the right, not the obligation, to purchase
an ordinary share in Kingfish at a fixed price on a
fixed date
»There are currently no warrants on issue
Management
Kingfish’s portfolio is managed
by Fisher Funds Management
Limited. Sam Dickie (Senior
Portfolio Manager), Zoie Regan
(Senior Investment Analyst) and
Matt Peek (Investment Analyst)
have prime responsibility for
managing the Kingfish portfolio.
Together they have over 40 years
combined experience and are
very capable of researching and
investing in the quality New
Zealand companies that Kingfish
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 Kingfish
comprises independent
directors Alistair Ryan (Chair),
Carol Campbell and Andy
Coupe; and non-independent
director Carmel Fisher.