Kingfish pays performance fee

29 April 2019

Kingfish pays performance fee
Kingfish Limited (Kingfish) has paid a performance fee to the Manager, Fisher Funds
Management Limited (Fisher Funds) for the year ended 31 March 2019. The performance fee is
paid in accordance with the terms of the Management Agreement between Kingfish and Fisher
Funds. The performance fee paid to Fisher Funds was $4,423,884 plus GST.

Kingfish’s Manager, Fisher Funds, is eligible for a performance fee because the Kingfish
portfolio achieved a return for the year to 31 March 2019 in excess of the Bank Bill Index rate
plus 7% (the performance fee hurdle) and the High Water Mark (the highest net asset value at
the end of the previous financial year in which a performance fee was paid, adjusted for
changes in capital).

The performance fee is formula-driven with half of the performance fee (exclusive of GST)
applied by the Manager to subscribe for shares in Kingfish at an issue price per share equal to
the net asset value per share as at 31 March 2019, with the balance of the performance fee
paid in cash.

The performance fee has been accrued in Kingfish’s net asset value per share which is
announced to NZX each week and at month end.

A new High Water Mark has now been set and in order for the Manager to achieve a
performance fee for the 2020 financial year, Kingfish’s performance will need to surpass the
new High Water Mark as well as the performance fee hurdle.

The Kingfish board, as part of the Management Agreement renewal and renegotiation with
Fisher Funds Management Limited recently negotiated a 33% reduction to the performance fee
earn rate (above the performance hurdle) from 15% to 10% together with the introduction of a
cap (1.25%) on the total performance fee amount in conjunction with moving to payment of
any performance fee 100% in cash rather than 50% cash and 50% shares. The changes take
effect from 1 April 2019 for the 2020 financial year.


Alistair Ryan
Chair
Kingfish Limited
Kingfish Limited
Phone +64 9 489 7094
Fax +64 9 489 7139
Private Bag 93502, Takapuna
Auckland, New Zealand