KFL – April 2019 monthly update

1
Monthly Update
April 2019
A word from the Manager
Market Environment
New Zealand equities as measured by the S&P/NZX50G
index were up +5.6% in March, significantly outperforming
global equity markets. This means the New Zealand
share market has caught up to the global pack after
global equities’ explosive start to 2019, and New Zealand
remains a clear outperformer over the last twelve months.
New Zealand ten year Government bond yields fell very
sharply during March and are now near lifetime lows. This
supported strong performance of ‘yield stocks’ and so it
was pleasing the Kingfish portfolio almost kept pace with
the New Zealand market against this backdrop, given our
larger exposure to growth companies.
The Portfolio
There was strong confirmation of our position in The a2
Milk Company from Synlait’s first half 2019 result, (Synlait
being a2 Milk’s processing partner). Synlait’s sales volumes
were lower than expected at 17.7 thousand tonnes but
its maintenance of full year guidance (41 to 45 thousand
tonnes) in conjunction with minimal production from
Synlait’s smaller brands highlights a strong second half run-
rate which reconciles with a2’s sales growth expectations.
We continue to believe a2 still has strong growth prospects
in China from infant formula and have added to the
position following the share price weakness recently.
Finaccess’ partial takeover offer for Restaurant Brands
closed with 91.35% of acceptances, versus 75% sought. This
means around 82% of our shares were vended into the offer
at $9.45 with payment in early April, which was broadly as
we expected.
Summerset held its investor day during the month and
while there was limited fresh news, it was good to see its
Ellerslie site now humming following the completion of a
major block of apartments late in 2018. The site has been
a point of contention for Summerset over the past year
with a range of issues affecting progress, but it is now
attracting strong interest and remains on track to deliver
around $40 million net cash on completion.
Portfolio Changes and Strategy
We completely exited our position in Michael Hill. We
believe we can invest that capital in other investments
to generate superior risk-adjusted returns over time.
We believe the investment case has shifted and the
longer term prospects for the business are increasingly
challenged. The company will require flawless execution
to succeed given headwinds in terms of Australian
retail mall footfall and stagnant fine jewellery category
growth, among other things. The recent recovery in
share price from depressed levels allowed us exit at a
better price than would have been possible at any time
since mid-October.
We lowered our target weighting in Restaurant Brands
during the month to reflect the completion of the partial
takeover offer. We increased our position in a2 during
the month as the stock was not pricing any upside from
the expected upwards inflection in earnings power. We
also redeployed the Michael Hill funds by increasing our
target weightings in Mainfreight and Infratil.
1
As at the date of this Monthly Update the Kingfish Ltd year end NAV has yet to be audited, & therefore it may change.
2
Share Price Discount to NAV (including warrant price on a pro-rated basis).
KFL NAV
$
1.57
1
SHARE PRICE
$
1.35
DISCOUNT
2
13.1
%
as at 31 March 2019
WARRANT PRICE
$
0.06
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

Key Details
as at 31 March 2019
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
10% of returns in excess of
benchmark and high water mark
(From 1 April 2019)
HIGH WATER MARK
$1.31 ($1.56 from 1 April 2019)
PERFORMANCE FEE CAP
1.25% of year end NAV
3
SHARES ON ISSUE
198m
MARKET CAPITALISATION
$267m
GEARING
None (maximum permitted 20%
of gross asset value)
Sector Split
as at 31 March 2019
2
%
26
%
HEALTH CARE
17
%

UTILITIES

MATERIALS
28
%
INDUSTRIALS
4
%
CONSUMER
DISCRETIONARY
10
%
CONSUMER
STAPLES
6
%

CASH
7
%
INFORMATION
TECHNOLOGY
2
Performance
to 31 March 2019
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.0%+4.7%+13.5%+11.2%+10.9%
Adjusted NAV Return+4.9%+13.9%+17.6%+14.3%+12.5%
Portfolio Performance
Gross Performance Return+5.5%+15.3%+21.2%+17.0%+15.2%
S&P/NZX50G Index+5.6%+11.7%+18.3%+13.4%+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, before fees and tax, 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/
3
Being the year end NAV prior to the accounting for the deduction of any performance fee to be paid in respect of performance in the calculation period.

3
Total Shareholder Return
to 31 March 2019
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
$
4.50
$
0.50
$
0.00
Mar
2017
$
3.50
Mar
2018
$
4.00
Mar
2019
March’s Biggest Movers
Typically the Kingfish portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 10 stocks and cash.
5 Largest Portfolio Positions
as at 31 March 2019
MERIDIAN ENERGY
+16
%
RYMAN HEALTHCARE
+11
%
MAINFREIGHT
+10
%
VISTA GROUP
+9
%
FISHER & PAYKEL
HEALTHCARE
+7
%
FISHER & PAYKEL
HEALTHCARE
14
%
THE A2 MILK COMPANY
13
%
FREIGHTWAYS
11
%
MAINFREIGHT
9
%
INFRATIL
7
%

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
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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 9.7m of its
shares on market in the year to 31 October 2019
»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
»On 2 July 2018, a new issue of warrants (KFLWE) was
announced
»The warrants were issued at no cost to eligible
shareholders and in the ratio of one warrant for
every four Kingfish shares held
»Exercise Price = $1.37 per warrant, to be adjusted
down for dividends declared during the period up to
the Exercise Date
»Exercise Date = 12 July 2019
»The final Exercise Price will be announced and an
Exercise Form will be posted to warrant holders in
June 2019
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, Andy Coupe
and Carmel Fisher.