Kingfish 2019 Annual Report provided

31 MARCH 2019
ANNUAL REPORT
KINGFISH LIMITED

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ANNUAL REPORT
2019
CALENDAR
Next Dividend Payable
27 JUNE 2019
Annual Shareholders’ Meeting
Ellerslie Event Centre, Auckland
31 JULY 2019, 10:30AM
Interim Period End
30 SEPTEMBER 2019
03About Kingfish
06Directors’ Overview
10Manager’s Report
18The STEEPP Process
20Kingfish Portfolio Stocks
28Board of Directors
29Corporate Governance Statement
35Directors’ Statement of Responsibility
36Financial Statements Contents
54Independent Auditor’s Report
58Shareholder Information
60Statutory Information
63Directory
CONTENTS
Alistair Ryan
Chair
Carmel Fisher
Director
This report is dated 17 June 2019 and is
signed on behalf of the Board of Kingfish
Limited by Alistair Ryan, Chair, and
Carmel Fisher, Director.

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ANNUAL REPORT
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ABOUT KINGFISH
Kingfish Limited (“Kingfish” or “the company”) is a listed investment
company that invests in quality, growing New Zealand companies. The
Kingfish portfolio is managed by Fisher Funds Management Limited
(“Fisher Funds” or “the Manager”), a specialist investment manager
with a track record of successfully investing in growth company shares.
Kingfish listed on NZX Main Board on 31 March 2004 and may invest
in companies that are listed on a New Zealand stock exchange or
unlisted companies.
INVESTMENT OBJECTIVES
The key investment objectives of Kingfish are to:
» achieve a high real rate of return, comprising both income and capital
growth, within risk parameters acceptable to the directors; and
»provide access to a diversified portfolio of New Zealand quality
growth stocks through a single tax efficient investment vehicle.
INVESTMENT APPROACH
The investment philosophy of Kingfish is summarised by the following
broad principles:
» invest as a medium to long-term investor exiting only on the basis of
a fundamental change in the original investment case;
»invest in companies that have a proven track record of growing
profitability; and
» construct a diversified portfolio of investments based on our
‘STEEPP’ investment criteria (see pages 18 and 19).

$
47.1m
Net profit
13.5
%
Total shareholder return
21.2
%
Gross performance return
$
1.57
NAV per share
$
1.35
Share price
17.6
%
Adjusted NAV return
DIVIDENDS PAID
DIVIDENDS PAID DURING THE YEAR ENDED 31 MARCH 2019 (CENTS PER SHARE)
Total dividends of 11.76 cps were paid during the financial year (2018: 11.28 cps)
29 June
2018
2.89
cps
28 September
2018
3.00
cps
21 December
2018
3.04
cps
28 March
2019
2.83
cps
FOR THE 12 MONTHS ENDED 31 MARCH 2019
AT A GLANCE
AS AT 31 MARCH 2019
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The a2 Milk
Company
13
%
Fisher & Paykel
Healthcare
14
%
Freightways
9
%
Mainfreight
11
%
Infratil
7
%
AS AT 31 MARCH 2019
LARGEST INVESTMENTS
1
AS AT 31 MARCH 2019
SECTOR SPLIT
1
Industrials 28%
Healthcare 26%
Consumer Staples 17%
Utilities 10%
Information Technology 7%
Consumer Discretionary 4%
Materials 2%
The Kingfish portfolio also holds some cash.
1
Percentage calculations are based on all investments and include all Restaurant Brand shares, including those classified to trade
and other receivables. (Refer footnote of Note 8 in the Financial Statements).
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"Kingfish continued its
strong performance
for the 2019 financial
year achieving net
profit of $47.1m ..."
DIRECTORS’ OVERVIEW
Alistair Ryan
Chair
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Despite a volatile December 2018 quarter,
the New Zealand share market continued on
from the positive trend of the last 6 years and
produced another double digit return for the
12 months ended 31 March 2019.
Following several years of strong performance, the
New Zealand share market experienced a more
challenging 12 months to 31 March 2019. After an
excellent first six months of the 2019 financial year,
the New Zealand share market gave up much of those
gains in the third quarter amidst global uncertainty and
changing investor appetites, before regaining strength
in the last quarter. The Kingfish portfolio achieved an
adjusted NAV return for the financial year of 17.6%
1
.
The S&P/NZXG50 was up 18.3% for the year and the
Manager’s performance, as measured by the gross
performance return was 21.2%
2
.
Kingfish continued its strong performance for the 2019
financial year achieving net profit of $47.1m, a very
pleasing result overall and ahead of last year’s result of
$36.3m.
Shareholders also enjoyed better returns for the year to
31 March 2019 compared to the previous period. Total
shareholder return, which includes the change in the
share price, dividends paid per share and the impact
of warrants, was 13.5% for the 12 months, up from
12.0% for the year ended 31 March 2018.
REVENUES AND EXPENSES
The key components of the full-year result were gains
on investments of $49.5m, dividend and interest
income of $6.8m less operating expenses and tax
of $9.2m.
Operating expenses were $2.2m higher than the
corresponding period, mainly due to the higher
performance fee. The Manager achieved an additional
fee of $4.3m plus GST for beating its performance fee
hurdle for the year. Calculated in accordance with the
management agreement, a performance fee is paid for
outperformance of the Bank Bill Index plus 7% (9% in
FY19) to the extent the High Water Mark (the highest
NAV at the end of the previous financial year in which
a performance fee was paid, after adjusting for capital
changes and distributions) has been exceeded. The
performance fee reflects the strong performance of the
portfolio during the 2019 financial year.
The board negotiated a 33% reduction to the
performance fee earn rate (above the performance fee
hurdle) from 15% to 10% together with the introduction
of a performance fee cap (1.25%) on the total
performance fee amount in conjunction with moving
payment of any performance fee to 100% in cash rather
than 50% cash and 50% shares. The changes took
effect from 1 April 2019.
DIVIDENDS
Kingfish continues to distribute 2.0% of average net
asset value per quarter. Over the 12-month period to
31 March 2019, Kingfish paid 11.76 cents per share in
dividends (2.89 cents per share on 29 June 2018, 3.00
cents per share on 28 September 2018, 3.04 cents per
share on 21 December 2016 and 2.83 cents per share
on 31 March 2019). The next dividend will be 3.07 cents
per share, payable on 27 June 2019 with a record date
of 13 June 2019.
Kingfish has a dividend reinvestment plan which provides
ordinary shareholders with the option to reinvest all or
part of any cash dividends in fully paid ordinary shares.
Currently, shares issued under the reinvestment plan will
be issued at a 3% discount. To participate in the dividend
reinvestment plan, a completed participation notice must
be received by Kingfish before the next record date. Full
details of the dividend reinvestment plan can be found in
the Kingfish Dividend Reinvestment Plan Offer Document,
a copy of which is available at www.kingfish.co.nz/
investor-centre/capital-management-strategies/.
3
WARRANTS
Kingfish has a regular warrant programme. On 19 July
2018 48,368,533 new Kingfish warrants were allotted.
One new warrant was issued to all eligible shareholders
for every four shares held on record date (18 July 2018).
The warrants are exercisable at $1.25 per warrant, with
an exercise date of 12 July 2019. Warrants continue to
be part of the overall capital management programme.
SHARE BUYBACKS
The share buyback programme is another part of
Kingfish’s capital management programme. Share
buybacks are utilised when the share price to NAV
discount is greater than 8%. During the 12 months to 31
March 2019 the share price to NAV discount fluctuated
between 2% and 14%. Over the period Kingfish took
advantage of the deeper share price to NAV discounts
and purchased approximately 395k shares. Shares
purchased under the buyback programme are held as
treasury stock and subsequently reissued to shareholders
under the dividend reinvestment plan and in settlement of
the Manager’s performance fee.
1
The adjusted net asset value return is the underlying performance of the investment portfolio adjusted for dividends (and other
capital management initiatives) and after fees and tax.
2
The gross performance return is the portfolio performance before expenses and tax. It is an appropriate return measure for
assessing the Manager's performance against an index or benchmark.
3
Participation forms for the Dividend Reinvestment Plan (DRP) can be obtained by contacting either Kingfish or Computershare
Investor Services Limited.
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FIGURE 1: FIVE-YEAR PERFORMANCE SUMMARY
Corporate Performance
For the year ended 31 March 20192018201720162015
5 years
(annualised)
Total Shareholder Return13.5%12.0%8.1%3.3%18.2%10.9%
Adjusted NAV Return1 7. 6 %14.7%10.6%13.0%6.8%12. 5%
Dividend Return9.0 %8.7%8.5%7. 7 %8.4%
Net Profit $ 4 7.1 m$36.3m$22.4m$22.5m$11.9 m
Basic Earnings per Share24.24cps19. 62c p s14.50 cps16.71cps9.8 5 c p s
As at 31 March20192018201720162015
NAV (as per financial statements)$1.57$1.4 5$1.40$1.37$1.34
Adjusted NAV
1
$4.78$4.07$3.54$3.20$2.84
Share Price$1.35$1.31$1.29$1.31$1.37
Warrant Price$0.06-$0.05-$0.10
Share Price Discount/(Premium) to NAV
2
13.1%9. 7 % 7. 0 %4.4%( 4 .1%)
Manager Performance
For the year ended 31 March 20192018201720162015
5 years
(annualised)
Gross Portfolio Performance
(before fees and expenses)21.2%16.5%13.3%15.7%9. 6%15.2%
S & P/N Z X 5 0 G18.3%15.6%6.6%15.7%13.5%13.9%
Performance fee hurdle / Benchmark Rate
3
9.0 %9.0 %9. 3%10.2%10.6%
NB: All returns have been reviewed by an independent actuary.
1
Kingfish’s adjusted NAV historical information has been restated as a result of correcting the warrant dilution component of
the calculation.
2
Share price discount/(premium) to NAV (including warrant price on a pro-rated basis).
3
The performance fee hurdle is the Benchmark Rate (NZ 90 Day Bank Bill Index +7%).
DIRECTORS’ OVERVIEW CONTINUED
Alistair Ryan / Chair
Kingfish Limited
17 June 2019
ANNUAL SHAREHOLDERS’ MEETING
The 2019 Annual Shareholders’ Meeting will be held
on Wednesday 31 July at 10:30am at the Ellerslie
Event Centre in Auckland. All shareholders are
encouraged to attend, with those who are unable to
attend invited to cast their vote on company resolutions
prior to the meeting. All information presented at the
annual meeting will be available on Kingfish’s website
at the conclusion of the meeting.
CONCLUSION
The 2019 year was both a rewarding and challenging
period for the New Zealand share market which was
again strongly influenced by the political and economic
developments in offshore markets. It was encouraging
that Kingfish generated strong returns ahead of the
market in such an environment. The Board is pleased at
the Manager’s continued focus on investing in quality
companies which have continued to grow and yield
healthy returns for shareholders.
We would like to thank you for your continued support
and look forward to seeing many of you at our Annual
Shareholders’ Meeting in July.
On behalf of the board,
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ANNUAL REPORT
2019

Non-GAAP Financial Information
Kingfish 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 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, gross performance return and total shareholder return in this Annual Report 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://www.kingfish.co.nz/about-kingfish/kingfish-policies/
FIGURE 2: TOTAL SHAREHOLDER RETURN
Share Price/Total Shareholder Return
Total Shareholder ReturnShare Price
$
4.50
$
4.00
$
3.50
$
3.00
$
2.50
$
2.00
$
1.50
$
1.00
$
0.50
$
0.00
Mar
2016
Mar
2019
Mar
2004
Mar
2005
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2 011
Mar
2012
Mar
2013
Mar
2014
Mar
2015
Mar
2017
Mar
2018
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2019

Sam Dickie
Senior Portfolio Manager
"The swing in share
market sentiment from
the December quarter
of 2018 to the March
quarter 2019 feels more
like the fictional battle
between the good Dr
Jekyll and the evil Mr
Hyde than the behaviour
of sophisticated share
market investors."
MANAGER’S REPORT
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2019

The teflon NZ market was one of the best
performing markets globally again in the year
to March 2019 and significantly outperformed
global markets, rallying circa 18% vs global
equities which were up a mere 5%. What
was most impressive was that not only did NZ
exhibit its normal safe haven characteristics
during the market rout in the December
2018 quarter, falling only 8% peak to trough
vs global markets falling 18%, it also fully
participated in the March quarter 2019 rally,
+15% vs global equities +18%. This is like
having your cake and eating it too.
Kingfish had its best absolute return in 5 years, topped
off by its best final quarter in 13 years, following its
worst December quarter in 11 years. That is enough to
give you whiplash.
The swing in share market sentiment from the December
quarter of 2018 to the March quarter 2019 feels more
like the fictional battle between the good Dr Jekyll and
the evil Mr Hyde than the behaviour of sophisticated
share market investors. The evil Mr Hyde well and
truly ruled the December quarter of 2018. Almost any
news, good or bad, was greeted negatively, the market
couldn’t find its feet and companies, almost regardless
of their quality, were savagely sold off. In an early
Christmas present markets bottomed on December 24
just as the US share market had put a toe into official
bear market territory. Since then Dr Jekyll has been in
control. Good news has been met almost euphorically
and bad news has been ignored. Share prices have
soared. As it turns out the evil of Mr Hyde will often
throw up opportunities that the more thoughtful Dr Jekyll
can take advantage of.
Performance by quarter for fiscal 2019
The March 2019 quarter and especially the last month
of the quarter was all about interest rates. In March, US
10-year Treasury yields staged the sharpest fall since
June 2016. To put the recent moves into perspective,
remember June 2016 was hot on the heels of the initial
Brexit vote and it felt like most of the world’s bond
yields were going to go negative. Back home, New
Zealand’s 10-year Government Bond yields staged
their sharpest monthly fall in March... ever! This key
benchmark rate hit all-time lows at 1.8%. Another way
of looking at this, the current yield is less than half of
the trailing 10-year average. We use the trailing 10-
year average for context as that is often what equity
investors will use as their risk-free interest rate — an
input into how they value companies. A sharp fall in
bond yields will, all other things being equal, lower
the cost of capital equity investors use to discount the
expected future cashflows of the companies they own.
The punchline is that a sharply lower cost of capital
translates to a higher valuation for the company. This
is especially true for companies that are sensitive to
interest rates, which often either have large debt piles
or slower growth, of which we have purposefully
maintained a very low weighting to.
So against this backdrop of stronger performance from
companies that do not suit our investment style, it is
especially pleasing that Kingfish performed so strongly
relative to the broader market.
10 year Government bond yields in fiscal 2019
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
Kingfish Gross
Performance
Return
June 2018 quarter
September 2018 quarter
December 2018 quarter
MSCI
World Index
S&P 500
Index
Kingfish
Adjusted
NAV Return
NZX/
S&P50G
Index
March 2019 quarter
March 2019 fiscal year
21.2%
18.3%
17. 6 %
9.5%
4.6%
4.0
3.5
3.0
2.5
2.0
1.5
31 M a r
2018
31 M a r
2019
31 D e c
2018
30 Sep
2018
30 Jun
2018
NZ
US
NZ 10 year average
US 10 year average
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2019

KINGFISH PORTFOLIO
The most exciting thing about our process is it is
continually being honed. We are building a learning
machine. The 2019 financial year was volatile and
hence gave us the opportunity to test several of our
core investment principles.
You have heard us say before many times that we
are long-term thinkers and approach investing like
business owners, not financial analysts. We don’t
buy pieces of paper looking to profit as we shuffle
them back and forth with other investors as prices
change. Instead we think like business owners buying
part of a company expecting to own it for the long
term. Taking a long-term view means thinking about
a company’s competitive position, how its products
or services resonate with customers, about how
the company’s strategy will play out and what new
investments it will make. This is where we believe
we can gain unique insights, developing a strong
sense of which companies will be the winners and
losers in the never-ending game of competition. We
build industry knowledge – the only way to pick the
winners and losers in an industry is to develop deep
domain knowledge, understanding how successful
companies are differentiating themselves from the
competition. Building this knowledge is a painstaking
process that happens over years of talking to company
management, industry experts, attending conferences
and reading a lot – focusing on the most important
things, information has become freely available, but
insightful analysis is just as rare as it always was. We
focus our energy and attention on the things that drive
long-term earnings and that improve a company’s
competitive position. It is easy to get caught up in the
noise of the here and now. We strive to avoid that.
a2 Milk, Fisher & Paykel Healthcare and Vista Group
by their very nature are ultra long-term growth stories.
Fisher & Paykel Healthcare is currently treating
approximately three million patients with their Optiflow
Nasal High Flow Therapy product. We think the total
addressable market here could be as large as 40 to
50 million patients. This is a growth runway that can
extend for decades. a2 Milk has less than 4% market
share in the huge Chinese infant formula market. We
think this is a market the company can dominate. We
also think a2 Milk can take a meaningful market share
in the US liquid milk market where its market share
is currently negligible. Movio Media, the jewel in
the Vista Group crown, currently generates less than
NZ$30m of revenue. The addressable market could be
as large as NZ$400m in 5 years time. With the scale
of opportunity these companies have ahead of them, it
is critical not to get lost in the short-term noise and keep
our eye on the long-term prize.
Close followers of a2 Milk will understand what we
mean when we say there is an enormous amount of
noise that comes with the territory. This is normal with
exciting consumer growth stories in the huge and
opaque Chinese market. The key for us is to sift through
the mountain of day-to-day noise and to identify the
important information that helps us get clarity on the
long-term story. In recent months, a2 Milk’s share price
has been battered by various fears. Firstly, the market
grappled with concerns that sweeping regulatory
changes in China may impact a2 Milk, but as it turned
out common sense prevailed, and the government did
not block Chinese mothers from using offshore infant
formula as many in the market would have us believe.
Secondly, the CEO sold a parcel of shares she had just
received, prompting many in the market to suggest she
must know something we didn’t. As it turned out, like
many sellers of shares, the CEO had personal reasons
for selling that had nothing whatsoever to do with the
health of the company. Thirdly, slowing consumption
growth in China as the economy slows came onto
investor’s radars, but as it turns out, the huge total
addressable market and low penetration allow a2 Milk
to prosper despite any broad slowdown in consumption.
Fourthly, a sales ‘miss’ relative to consensus expectations
led many to think that a2 Milk's growth story was over,
but the shortfall was due to a change in their infant
formula labelling, which proved a temporary hiccup and
has not impacted the long-term earnings power of the
business at all. We have added to our a2 Milk position
in several of those situations, which have all proved to
be transitory and reflect the market’s short-term focus.
After all of this noise, a2 Milk reported a strong earnings
result in February, well ahead of our expectations (which
were also ahead of consensus)! Growth has essentially
accelerated and based upon the company’s in-depth
data-driven work on customer loyalty and behaviour,
management were confident enough to provide more
upbeat and longer-term guidance than they have ever
given before.
Attending a meeting with the Fisher & Paykel Healthcare
management team is like, excuse the pun, a breath of
fresh air for us. The company thinks in decades, not
quarters. This is the exact opposite of many investors
who myopically focus on short-term issues such as
the annual flu cycle and whether it will impact current
earnings. Our view is that the flu season in any given
year may vary but any one year’s outcome does not
impact the long-term earnings power of Fisher & Paykel
Healthcare one iota. When we meet the management
team, we spend almost no time focussing on the previous
half yearly earnings. We spend almost the entire time
focussing on the 5 to 20-year outlook. We focus on the
long-term production capability of the Mexico facilities,
we focus on the very large and untapped opportunities
Fisher & Paykel Healthcare has with Optiflow outside the
MANAGER’S REPORT CONTINUED
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ANNUAL REPORT
2019

intensive care unit, and we focus on the super long-term
opportunity of using Optiflow or high flow nasal therapy
in the home.
Vista develops software for cinema exhibitors – last
time you went to the movies its software would have
been running almost everything in the cinema right from
providing your tickets to managing your popcorn order.
Vista has had the local market sewn up for many years,
but it turns out Vista's solution isn't just the best product
for the local market, but also globally. The company's
progress overseas stems from its entrepreneurial spirit
and desire to build a genuine market-leading, highly
scalable product. A great example of this was that many
years ago, Vista entered Argentina as only its third
country of operation, and had to contend with complex
local taxes and a new language. This was a brave
and ultimately successful move. Vista hasn't looked
back since and is now present in almost 100 countries,
including the fast-growing Chinese market. Vista has the
largest cinema software development team in the world
and has proactively reinvested in its product, which
has increased its lead over competitors. The cumulative
research and development spend and millions of lines
of software code are a few of the elements that form
an excellent competitive 'moat' around the business.
Vista has become the dominant player in its niche with
global market share, of over 40%. Even with such a
high market share the company is still growing, with
large cinema chains like Odeon in Europe and Aeon
in Japan recently switching over to Vista. With weaker
competitors falling by the wayside, it's conceivable
that this could be a classic 'winner-takes-all' specialist
software market. But for Vista this is just the tip of the
iceberg. Management realised that the high (and
growing) barriers to entry around its leading position
allowed it to collate industry data, and it has used this
to develop a suite of 'ecosystem' products around its
strong core. This ability of a 'platform company' to
profitably and organically grow new businesses from its
strong platform core is rare and very powerful. Movio
Media performs advanced analytics for major movie
studios to work out how to optimally spend their billions
of advertising dollars. Movie advertising is increasingly
going digital (think more targeted social media and less
traditional TV) and so Movio can capture more of this
growing pie moving forwards. One of our preferred
investment strategies is to back a leading business
that can surf the wave of a powerful thematic trend
like this. Beyond Movio, Vista has become aware of
other opportunities to add value to its key studios and
exhibitors. It has used its customer-centric entrepreneurial
mindset to pursue these through a number of early-
stage businesses like Powster (film websites), Cinema
Intelligence (predictive optimisation) and Numero (box
office reporting). Vista's recent 2018 result highlighted
the power of a strong business with long runway and
many early-stage growth options. It guided for what
would be its sixth consecutive year of revenue growth
in the region of 20% since listing. We have confidence
in the quality and depth of management, many of who
are founders and have been with the business the whole
way. This means they firmly have the 'owner mentality'
and make decisions with a view to creating long-term
enduring value for the business.
The combination of our longstanding large weight
in Mainfreight and a very strong share price return,
even by its lofty standards, meant it was the largest
contributor to Kingfish's returns for the financial year.
This reflected strong performance from the company
which has seen a simultaneous acceleration in growth
in its key offshore markets of Australia, Europe and the
US. There is a lot to like about the Mainfreight story –
including the strong position it holds in the New Zealand
market, its massive global market opportunity, its focused
and ambitious management team and its unique culture
(which we greatly admire and will comment on further a
little later on).
Sales revenue for last 5 fiscal years (NZ$m)
3000
2500
2000
150 0
1000
500
0
MainfreightF&P Healthcarea2 MilkVista
There was a material development at Restaurant Brands
during the year, with the company receiving a partial
takeover offer from Mexican financial investor Finaccess
Capital. We thought the offer price of $9.45 per share
was very attractive and we participated to the maximum
extent possible (with around 82% of our shares vended
into the offer). As the offer was not for all shares on
issue, we still hold a small position in the company
following the completion of the offer.
Various investing legends have long espoused the virtues
of “wearing out your shoe leather”, visiting businesses
first hand to gain a more direct perspective. It certainly
makes a welcome change from reading financial reports
and hounding down unique insights from the terabytes
of information constantly circulating the internet! We
are often talking and meeting with our companies
locally, but it’s important to go overseas and see their
operations and key staff there — around half our
companies’ revenue is generated offshore, underlining
the importance of doing this.
FY14 FY15 FY16 FY17 FY18
29%
p.a.
8%
p.a.
14%
p.a.
70%
p.a.
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ANNUAL REPORT
2019

MANAGER’S REPORT CONTINUED
Over the 2019 financial year, our travels included
visiting Fisher & Paykel Healthcare Mexico facilities,
plus meeting a wider array of its US management team
and its key competitors (in both Europe and the US). We
saw progress in Mainfreight’s burgeoning European and
Australian operations, visited Pushpay and several of
their customers in the US and had a number of meetings
and relevant channel checks in China for a2 Milk (to
cover off the most important handful). We also plan to
visit Vista in the US and especially their rapidly growing
business Movio in June. Closer to home, we continue
to regularly travel to Australia, with meetings with
Mainfreight, a2 Milk and Infratil in particular delivering
key insights over the fiscal year.
Mainfreight is currently growing revenues rapidly outside
of New Zealand. On revisiting the large Epping site
in Melbourne two years after the 2016 investor day
hosted there, it was pleasing to see the warehouse full
and that the quality of the operations there has been
used to attract significant new customers. As a result, the
company is already expanding onto an adjacent site. It
is encouraging that the 2018 investor day was hosted in
the Netherlands, which is testament to the progress the
team is currently seeing in the European business. We
are pleased to see the company continuing to foster its
unique culture offshore and intensify its network both
within and between regions.
Fisher & Paykel Healthcare (FPH) generates almost 10%
of its revenue from Europe so it was extremely helpful
to spend some time with Patrick McSweeney, FPH’s
long-standing head of European operations. Patrick has
been in the industry for 30 years and has been with FPH
for 15 years. In business generally, but especially in the
world of medical technology where timeframes to get
products approved and into commercial production are
measured in decades, not years, that sort of experience
is worth its weight in gold. Patrick reminded us that the
European and global penetration of high flow oxygen
therapies into the hospital is still very low and FPH
remains very well positioned to dominate this significant
opportunity for many years to come.
Infrastructure investment company Infratil was a key
contributor to performance over the year. Infratil’s
portfolio reconstruction (for now) is largely complete,
with both its divestment programme and its relatively
young renewables and data platforms exceeding
expectations. Canberra Data Centres (CDC) deserves
particular mention. It is that rare beast which is a
growth infrastructure asset. We have just returned
from the annual Infratil investor day, where CDC stole
the limelight! CDC continues to exceed expectations
(ours, but also those of Infratil and CDC management
themselves) and earnings are re-accelerating, with
earnings growth now expected to exceed 50% in the
coming year! CDC acquired a Sydney datacentre
in December 2018 and continues to benefit from the
general growth in data, but also its positioning in
the market as a premium offering with high security,
reliability and sovereign ownership. With a strong
development path in both Canberra and Sydney, we
expect CDC to become Infratil’s largest single asset
exposure in the near future.
*From date of first investment
Portfolio Company Returns - year to 31 March 2019
Total shareholder return
-20%-10%0%10%20%30%80%
Source: Factset
40%50%60%70%
Vista
Meridian Energy
Mainfreight
Infratil
Auckland Airport
Restaurant Brands
Fisher & Paykel Healthcare
Ryman Healthcare
Port Of Tauranga
Delegat
a2 Milk
Freightways
Summerset
Pushpay Holdings*
Fletcher Building*
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Post balance date Infratil announced the conditional
acquisition of Vodafone NZ alongside Brookfield
Infrastructure Partners for NZ$3.4b, with Infratil raising
$400m of equity to fund its 49.9% stake. While
Infratil sees this as an investment with solid mid-teen
equity returns, we believe there is potential for material
upside risk and the deal evokes similarities to Infratil’s
extremely successful transformation of Shell’s NZ assets
into today’s Z Energy where the IFT earned four times
its equity investment in five years! We continue to view
Infratil as an attractive investment opportunity and post
balance date we have increased our weighting in Infratil
and participated in the equity raise.
PORTFOLIO CHANGES:
The ongoing upgrade to the quality of the portfolio
began early in the 2018 fiscal year with the exit of
Metro Performance Glass, Z Energy and Tegel and the
entry of a2 Milk. This continued in the 2019 financial
year with the exit of Abano and Michael Hill. We
recycled that capital into some of the highest quality
companies in NZ (a2 Milk, Fisher & Paykel Healthcare).
This active management of your portfolio differentiates
us from passive managers and has added material value
to your returns in the past couple of years.
When the story changes, be prepared to change your
mind and learn from your mistakes
It is often jarring to note that the best fund managers in
the world are wrong approximately 35% of the time.
That means that learning from successes is a critical
part of our culture but so is learning from mistakes. This
brings me to another core investment principle we have
which is that we should never compromise on quality.
Two companies that have turned out to be lower quality
than we originally thought are Abano and Michael
Hill. When these stories changed, we were prepared to
change our mind and our positioning.
Ongoing, disappointing same-store-sales growth
from its Australian business (Maven) and limited
margin improvement saw us exit our position in
Abano Healthcare in October 2018. We had been
progressively reducing our investment since November
2017. Two of the key attractions of a roll-up story are the
ability to take organic market share and the delivery of
operating leverage via scale and Abano Healthcare,
has struggled to deliver on both of these. As always,
your capital is precious and there were better places to
invest it. Since exiting our position in Abano Healthcare
the company has continued to disappoint, with the share
price now languishing around half the level we exited at.
We decided to exit our position in jewellery retailer
Michael Hill in March 2019. Based on our STEEPP
investment criteria, the company had one of the lowest
Strength score of the companies in our portfolio and we
decided there were better returns elsewhere given the
risk profile of the investment. The investment case has
changed meaningfully in recent times, as the growth
avenues the business was pursuing have proven too
challenging and been shut down. The strategic agenda
has shifted to focus on the core business, which is now
struggling to grow in the modern retail environment
where there is more competition for customers’ dollars
than ever and lower quality shopping malls are seeing
declines in foot traffic. Management have not executed
well in the core business, with an abrupt change in
promotional strategy resulting in a large and immediate
drop-off in sales. We were able to use the partial
share price recovery on the back of the new CEO’s
turnaround plan to exit the position. We do not expect
the outlook for the company to significantly improve from
here – the fine jewellery category is stagnant and price
competition as fierce as ever, especially in Australia.
Michael Hill is investing in much needed improvements
in customer experience and its online offering, but it
will require strong execution to just hold steady against
this backdrop. While we are bitterly disappointed at
the extent to which our position has detracted from
performance, we have learned valuable lessons here.
Primarily, we should have moved more decisively when
the investment thesis shifted and been more sceptical
of management’s optimism that performance would
improve, given weak execution, when nothing short of
excellent execution would suffice.
We also exited EBOS during the year which had a low
STEEPP score and was a less attractive use of capital
than alternative investments. The industry outlook
is becoming increasingly challenged as regulated
pharmacy revenues are expected to remain under
pressure with some manufacturers choosing to bypass
wholesale distributors and go direct to pharmacies, as
well as increasing competition with a new Australian
community wholesaler entrant in 2017. As a result,
competitors are increasingly attempting to diversify
into other healthcare businesses where EBOS has a
dominant market position. Organic earnings growth (ex
M&A) is expected to moderate to mid-single digits, with
earnings growth in its core healthcare operations of
circa 2-3% diluting otherwise attractive growth from its
consumer product and animal business. We were also
disappointed to see the highly respected CEO Patrick
Davies leave the company.
Key entries/major additions
As baseball catcher Yogi Berra famously said,
“predictions are difficult, especially about the future.”
We know that we don’t know everything about the
future. That means we look to build portfolios that can
perform well regardless of what gets thrown at us. The
list of things that could be is long: will inflation be higher
or lower, what is the economy going to do, will the New
Zealand dollar rise or fall? Portfolios need to be resilient
regardless of how the world unfolds.
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This means we diversify appropriately – we seek to
build all weather portfolios that are sensibly diversified
across a range of companies that will tend to perform
differently at different times in the cycle. We try to
make sure our best ideas make a difference – while
it’s important to build a sensibly diversified portfolio,
we also want to get the best value from our investment
insights. This means we are not afraid to focus portfolios
on our very best ideas. We typically have investments in
fewer companies than other asset managers.
In last year’s annual report, we noted that Kingfish
made a small investment in Fletcher Building for the
first time early in fiscal 2019. We noted that we had
our eyes wide open about the company’s patchy
track record, the challenges that lie ahead and the
risks around the construction cycle. It is this latter
factor that caused us to cut our weighting in Fletcher
Building during the year to a minimum position size. It is
important to note, however, that the self-help story that
the company articulated around refocussing on its core
assets and divesting non-core assets continues to be
executed as we expected.
We added Pushpay to the portfolio during the year.
Pushpay is a New Zealand tech success story that
builds world class giving and engagement solutions for
organisations. It is now the leading mobile payments
and engagement provider to the US faith sector. The
company delivers best in class product and service, and
its domain expertise combined with superior investment
in resources (both sales and R&D) gives us comfort that
Pushpay will retain this edge over competitors. We
attended an investor day held by the company in the
US during the year and were impressed by the depth
of strength of the firm below senior management. In
addition, we have been especially impressed by the
exceptionally strong customer feedback we obtained
during our independent checks, from various large
churches in the US. Pushpay has achieved both positive
cash flow and operating earnings in the December
2019 quarter and has since reported positive operating
earnings for the financial year to 31 March 2019. It
is not unreasonable to expect revenue growth over
the next 3-5 years to continue to compound at circa
20-30%+ p.a. Pushpay remains a relatively early stage
investment and we have initiated a minimum position.
OUTLOOK:
A key part of our culture is to continuously hone our
process and importantly, never stop learning. When
we think about these and other key culture attributes,
we need look no further than Mainfreight for an
excellent example of not only what a great culture is, but
importantly how it can add material value. Doing things
the “Mainfreight Way” means a heavy focus on people
MANAGER’S REPORT CONTINUED
and customer service. The entrepreneurial spirit means
owner-drivers are heavily invested in success. Weekly
accounts are on the wall of every branch office and
lunchroom globally, which drives accountability and
healthy competition. Mainfreight strives for continuous
improvement via a “growth mentality”, with cross-
branch competition and collaboration fostering
innovative development and implementation of best
practice, plus the environment to front up and learn
from their mistakes to make the business better.
One of the key things we learnt last year from the
good Dr Jekyll and the evil Mr Hyde is that market
returns can look very different in a short space of time
with small changes in perceived outlook. This brought
about a major change in market dynamics in late
2018 and early 2019 with single stock dispersion,
essentially the difference in returns between the
weakest and strongest performers, increasing sharply
after several quarters of very low dispersion in late
2017 and into 2018. We welcome dispersion with
open arms as it provides an opportunity to beat the
market and allows the high quality companies we
invest in on your behalf to shine.
For example, during the final quarter of the Kingfish
year, portfolio heavyweights like The a2 Milk
Company, Fisher & Paykel Healthcare and Mainfreight
delivered significantly higher returns than the market.
Of course dispersion is a two-way street. Thankfully
we avoided some of the weaker performers over the
quarter. In particular, it was satisfying that companies
we have either previously exited (Metro Performance
Glass, Abano Healthcare and Sky TV) or had run
through our process and actively chosen not to invest
in (Metlifecare, Comvita) returned significantly less
than the market. Dispersion was also evident in the
recent company earnings reporting season. The
Kingfish portfolio had a ratio of earnings beats to
misses of 2 to 1. We had twice as many companies
that beat consensus earnings expectations as those
that missed them. The broader NZ stock market, on
the other hand, had a ratio of 0.3 to 1, meaning
that 3 times as many companies missed earnings
expectations as beat them.
Given the ferocity of the December quarter sell-off
in global equity markets and the pace of the March
quarter rally, coupled with the constant uncertainties
we see in the global economy, we should brace for
more volatility ahead.
However, as Yogi Berra taught us, predictions are
difficult. What I can say for certain though is that we
will continue to do what we have been doing. We will
continue to upgrade the quality of the portfolio, we
will continue to think long-term and mean it, we will
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PORTFOLIO HOLDINGS SUMMARY
AS AT 31 MARCH 2019
Listed Companies% Holding
Auckland International Airport5.0%
Delegat Group3.5%
Fisher & Paykel Healthcare13.9%
Fletcher Building1.8%
Freightways8.6%
Infratil6.8%
Mainfreight10.6%
Meridian Energy3.3%
Port of Tauranga3.3%
Pushpay Holdings1.9%
Restaurant Brands NZ*4.5%
Ryman Healthcare6.4%
Summerset5.9%
The a2 Milk Company 13.2%
Vista Group International4.9%
Equity Total93.6%
New Zealand dollar cash6.4%
TOTAL100.0%
continue to wear out the shoe leather in search of that
extra edge, we will continue to learn from our successes
and our mistakes, and we will never be afraid to change
our minds.

Sam Dickie / Senior Portfolio Manager
Fisher Funds Management Limited
17 June 2019
Growth Outlook - Global GDP vs NZ GDP
Portfolio revenue split by geography
New Zealand 50%
Australia & Asia 26%
North America 14%
Europe 8%
Other 2%
4.0%
3.5%
3.0%
2.5%
2.0%
Global GDP growthNZ Real GDP growth
2017 2018 2019
Source: IMF Forecasts, Bloomberg
Source: Fisher Funds estimates,
weighted by portfolio holdings
* Percentage calculation includes all Restaurant Brand shares. Refer footnote of Note 8 of the Financial Statements
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STRENGTH OF
THE BUSINESS
What is the company’s
competitive advantage? Is it
sustainable? Is the company a
market leader? Does it have
a dominant position? A strong
business is one that can maintain
its profit margins by employing a
unique strategy.
TRACK
RECORD
How has the company performed
in the past? Has the company
performed under the same
management team? Has it grown
organically or by acquisition? How
did the company react during a
downturn? Fisher Funds prefers to
buy established companies that
have executed well in the past.
EARNINGS
HISTORY
How fast has the company been
able to grow its earnings in the
past? How consistent has earnings
growth been? Fisher Funds prefers
to buy companies that exhibit
secular growth characteristics
where they have proven the ability
to provide a high or improving
return on invested capital.
THE STEEPP PROCESS
Fisher Funds employs a process that it calls STEEPP to analyse existing and potential portfolio
companies. This analysis gives each company a score against a number of criteria that Fisher Funds
believes need to be present in a successful portfolio company. All companies are then ranked
according to their STEEPP score to broadly determine their portfolio weighting (or indeed whether
they make the grade to be a portfolio company in the first place).
The STEEPP criteria are as follows:
STE
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EARNINGS
GROWTH FORECAST
What is the company’s earnings
growth forecast over the next
three to five years? What is the
probability of achieving the
forecast? What do we expect the
company’s earnings potential to
be? Fisher Funds notices that too
many analysts focus on short-term
earnings. As long-term growth
investors, Fisher Funds thinks about
where the company’s earnings
could be in three to five years.
PEOPLE/
MANAGEMENT
Who are the management team
and how long have they been in
their roles? Who are the directors,
what is their history with the
company, and what do they bring
to the Board? What is the depth of
management in the organisation
and is there a succession plan for
the key executive roles? Do the
management team own shares
in the business and how are
they rewarded? Has the Board
and management exhibited
good corporate behaviour in the
areas of environmental, social
and governance considerations?
For Fisher Funds, the quality of
the company management and
its corporate governance is of
paramount importance.
PRICE/
VALUATI O N
How much of the future earnings
growth is already reflected in
the share price? Where does the
current share price sit in relation
to our worst to best case valuation
range? A company will generate
a higher score where the market
price currently reflects little of that
company’s upside potential.
EPP
Applying this STEEPP analysis, Fisher Funds constructed a portfolio for
Kingfish which comprised 15 securities at the end of March 2019.
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THE KINGFISH PORTFOLIO STOCKS
WHAT DOES IT DO?
Auckland International Airport (AIA)
owns and operates New Zealand’s major
gateway as well as 1500 hectares of land
surrounding the airport. AIA operates
under a ‘dual till’ regulatory regime,
meaning that the company’s aeronautical
operations are subject to rate of return
regulation, whereas the other non-
aeronautical operations are unregulated.
Over 50% of AIA’s revenue is derived
from non-aeronautical operations, such as
retail, parking, hotel accommodation and
property rental.
WHY DO WE OWN IT?
AIA is well-positioned to benefit from
New Zealand’s positive long-term tourism
outlook. With aspirations for 40 million
total passengers per annum by 2044,
combined with a strengthening consumer
business and leveraging its land bank,
AIA’s non-aeronautical operations are
expected to continue to deliver attractive
returns on invested capital into the future.
WHAT DOES IT DO?
Delegat Group produces and distributes
super-premium wine internationally under
the Oyster Bay and Barossa Valley Estate
brands. Oyster Bay is the number one
selling New Zealand wine brand in the
UK, Australia and Canada, and is growing
quickly in the US.
WHY DO WE OWN IT?
Delegat continues to grow its profits
annually despite currency fluctuations.
The company has invested for growth
by expanding its winery capacity and
increasing vineyard plantings to meet its
goal of achieving 7% per annum growth
in case sales. The majority of the growth
is likely to be driven by the still relatively
immature US market.
+37
%
Total Shareholder Return
Total shareholder return sourced from Factset and excludes imputation credits.
The following is a brief introduction to each of your portfolio companies, with a description
of why we believe they deserve a position in the Kingfish portfolio. Total shareholder return
is for the year to 31 March 2019 and is based on the closing price for each company plus
any capital management initiatives. For companies that are new additions to the portfolio
during the year, total shareholder return is from the first purchase date to 31 March 2019.
+17
%
Total Shareholder Return
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WHAT DOES IT DO?
Fisher & Paykel Healthcare is a leading
designer, manufacturer and distributor of
innovative medical devices for patients who
require acute respiratory and obstructive
sleep apnoea care. Over 95% of its
products are sold outside New Zealand
from dedicated manufacturing facilities in
Auckland and Mexico.
WHY DO WE OWN IT?
We are attracted to the latent demand for
Fisher & Paykel Healthcare’s innovative care
products as the worldwide population ages
and the incidence of chronic respiratory
diseases and obesity rises. Through its
own research and development, Fisher
& Paykel Healthcare has continued to
develop products that significantly expand
its potential patient base, while maintaining
high returns on invested capital.
WHAT DOES IT DO?
Fletcher Building is a diversified building
products and construction company with
a range of different business units across
many products and services in New
Zealand, Australia and also internationally.
WHY DO WE OWN IT?
Many of Fletcher Building’s key business
units are well established, have performed
well, and have strong market positions,
particularly in New Zealand. Under the
new CEO, the company has strengthened
its balance sheet and is refocusing on
its core after various missteps on large
construction projects and expanding
internationally.
+21
%
Total Shareholder Return
-18
%
Total Shareholder Return
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KINGFISH PORTFOLIO STOCKS CONTINUED
WHAT DOES IT DO?
Freightways operates a range of
nationwide courier operations with
brands including NZ Couriers, Post Haste
and DX Mail. The company has also
developed an information management
business on both sides of the Tasman
encompassing document storage, data
services and secure destruction services.
WHY DO WE OWN IT?
Freightways is one of two dominant
players in the New Zealand courier
market and its information management
business has a footprint across
Australasia. The company has an
impressive track record of stable organic
growth and value-accretive acquisitions
that leverage off its existing infrastructure.
Earnings have been resilient in times of
recession, and are growing at least as
strongly as the domestic economy in
more buoyant times.
WHAT DOES IT DO?
Infratil invests in a diverse range of
infrastructure businesses encompassing
renewable energy, air and road transport,
aged care, and more recently, data centres
with a focus on co-investment within
Australasia. It is externally managed by an
experienced management team.
WHY DO WE OWN IT?
We are attracted to Infratil’s portfolio of
infrastructure assets that are not easily
replicable and its track record since listing
has been strong.
+13
%
Total Shareholder Return
+41
%
Total Shareholder Return
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WHAT DOES IT DO?
Mainfreight is a global supply chain
logistics company. It is a specialist
freight forwarder and distributor,
with interests spanning managed
warehousing, transportation of
hazardous substances, international
air and sea freight and both full-
truckload and less-than-truckload
domestic transport. Its operations span
New Zealand, Australia, US, Asia and
Europe.
WHY DO WE OWN IT?
Mainfreight is a very well-run company
with a special company culture that has
delivered strong performance over time.
It continues to open new trade lanes as it
spreads its logistics footprint ever wider.
Growth should come organically and
through judicious acquisitions as it works
towards its goal of becoming a global
logistics provider.
WHAT DOES IT DO?
Meridian Energy is New Zealand’s
largest electricity generator, producing
approximately 30% of the country’s
electricity in an average year, sourced
100% from renewable hydro and
wind resources. The company also
has a dominant retail business in New
Zealand, operating under the Meridian
and Powershop brands, and is well
positioned to double the size of its
Australian retail base.
WHY DO WE OWN IT?
Meridian is a well-run company, with a
portfolio of long-dated quality renewable
generation assets which provide Meridian
with the advantage of being amongst the
lowest cost marginal electricity producers.
Meridian is favourably positioned over
the long term to benefit from key sector
event risks and is generating increasing
free-cashflows given its decreasing capital
expenditure requirements.
+48
%
Total Shareholder Return
+55
%
Total Shareholder Return
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KINGFISH PORTFOLIO STOCKS CONTINUED
WHAT DOES IT DO?
Port of Tauranga is the natural gateway
to and from international markets
for many of New Zealand’s major
businesses. It is in close proximity to
many important exporters in the forestry,
dairy, meat and fruit industries. Its
investment in port facilities in Timaru and
an inland port near Christchurch opens
up the South Island hinterland for exports
to be hubbed out of Tauranga.
WHY DO WE OWN IT?
Port of Tauranga continues to grow
in importance as a leading shipping
port in New Zealand for both exports
and imports. It has many natural
advantages, including excellent access
for road and rail, large land holdings
and, more recently, a deep harbour for
bigger ships to call. It has an important
strategic 10-year agreement with Kotahi
which underwrites its investment in
Primeport Timaru and its Metroport near
Christchurch.
WHAT DOES IT DO?
Pushpay is a leading mobile payments and
engagement provider to the US faith sector,
with more than 7,600 customers including
14 of the top 20 and 55 of the top 100
largest churches in the US.
WHY DO WE OWN IT?
Pushpay provides the best in class product
and service, and its domain expertise
combined with existing resources (both
sales and Research & Development) gives
us comfort that Pushpay will retain this edge
over competitors. Pushpay’s addressable
market is very large (circa US$90bn)
and very under-penetrated and although
Pushpay remains relatively early-stage, it
is not unreasonable to see revenue growth
over the next three to five years continue to
compound at circa 20% - 30%+ p.a.
+17
%
Total Shareholder Return
-13
%
Total Shareholder Return
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WHAT DOES IT DO?
Restaurant Brands has predominantly
exclusive franchise agreements for
international fast-food brands in New
Zealand, Australia and the Pacific
(including KFC, Taco Bell, Pizza Hut,
Starbucks and Carl’s Jr.). In recent times,
the company expanded internationally
with the purchase of a network of KFC
stores in New South Wales, plus Taco Bell
and 45 Pizza Hutt stores in the Pacific
(primarily Hawaii). The KFC brand is the
largest earner for the group.
WHY DO WE OWN IT?
Restaurant Brands has a long history of
achieving attractive returns on invested
capital and has successfully delivered
increasing same store sales and
margins in its KFC division (including
in Australia), while changes in strategy
have improved profitability of Pizza Hut
and Starbucks. Restaurant Brands has a
leading management team and is in the
middle of a growth phase via its offshore
expansion.
WHAT DOES IT DO?
Ryman Healthcare was formed in 1984 to
develop, construct and operate retirement
villages in New Zealand. It now has 32
retirement villages around New Zealand
and is in the early stages of replicating its
model in Melbourne. Ryman Healthcare
is the largest owner and developer of
retirement villages in New Zealand.
WHY DO WE OWN IT?
Ryman Healthcare has stuck to its winning
formula since inception. Industry dynamics
are attractive, and Ryman Healthcare
continues to lift its build rate of units and
beds to meet latent demand from an
ageing population. Melbourne represents
an area of considerable upside with a
similar ageing demographic to that in
New Zealand. The company plans to have
five retirement villages open in Melbourne
by 2020, and plans to ultimately build at
the same rate there as in New Zealand.
+24
%
Total Shareholder Return
+18
%
Total Shareholder Return
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KINGFISH PORTFOLIO STOCKS CONTINUED
WHAT DOES IT DO?
Summerset is an integrated retirement
village builder, owner and operator.
The company has 26 retirement villages
around New Zealand and is the largest
developer and the third largest owner of
retirement villages in New Zealand. It is
investigating whether to expand into the
Australian market.
WHY DO WE OWN IT?
Summerset successfully operates a
continuum of care model with aged care
integrated into its villages. Summerset
has consistently lifted its build rate of
new units and beds, while expanding its
development margin. This indicates that
it is executing its business model well,
and has a large land bank to continue
the roll-out of its sought-after villages.
WHAT DOES IT DO?
The a2 Milk Company sells ‘a2’-branded
fresh milk and infant milk formula
internationally. As the name suggests,
its products contain only A2 beta-casein
protein, on the basis that it is more
comfortably digested than normal milk
(which contains a mix of both A1 and A2
proteins). In recent years, the company
has grown sales and market share rapidly
in Australia and China and is currently
also focused on its growing businesses in
the US and UK.
WHY DO WE OWN IT?
The a2 Milk Company has a small
but fast growing share of the very
lucrative Chinese infant formula market.
Management have capably executed
on its growth plans to date and we
expect its market share to continue
growing across a range of distribution
channels. In addition, there is potential
for further upside from new products and
geographies.
-3
%
Total Shareholder Return
+15
%
Total Shareholder Return
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WHAT DOES IT DO?
Vista Group is an innovative and
profitable IT company primarily providing
sophisticated software to cinema
exhibitors. It has a 40% worldwide market
share with clients in over 90 countries. Its
integrated software systems allow cinema
exhibitors to run wide-ranging functions
such as ticketing, food and beverage sales,
staff and film scheduling, loyalty schemes,
digital signage as well as external
customer interfaces like websites, mobile
apps and call centres. Vista Group also
has a range of smaller group businesses
that leverage its depth of data and cinema
industry intellectual property.
WHY DO WE OWN IT?
We are attracted to Vista Group’s profitable
core business which provides sophisticated
software to cinema operators of all sizes.
We believe that this business still has many
years of growth ahead of it, particularly in
undeveloped countries. Additionally, the
company’s data analytics business (Movio)
and other early stage businesses have
exciting long-term growth prospects.
+72
%
Total Shareholder Return
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Pictured left to right: Carol Campbell, Alistair Ryan, Carmel Fisher and Andy Coupe.
Alistair Ryan MComm (Hons), FCA
Chair of the Board
Chair of Remuneration and Nominations Committee
Independent Director
Alistair Ryan is an experienced company director and
corporate executive with extensive corporate and
finance sector experience in the listed company sector
in New Zealand and Australia. He is a director of
Barramundi, Marlin Global, Metlifecare and Kiwibank,
and a member of the FMA’s Audit Oversight Committee.
He was Chair of Evolve Education Group (retired 15
June 2019). Alistair had a 16-year career with SKYCITY
Entertainment Group Limited (from pre-opening and
pre-listing in 1996 through 2012). Alistair was a member
of the senior executive team and also served as a
director of various SKYCITY subsidiary and associated
companies. Prior to SKYCITY, Alistair was a Corporate
Services Partner with Ernst & Young, based in Auckland.
He is a fellow of Chartered Accountants Australia and
New Zealand. Alistair’s principal place of residence is
Auckland.
Alistair was first appointed to the Kingfish board on
10 February 2012.
Andy Coupe LLB
Chair of Investment Committee
Independent Director
Andy Coupe has extensive commercial and capital
markets experience having worked in a number of
sectors within the financial markets over the last 30
years. Andy was formerly a consultant in investment
banking at UBS New Zealand Limited, where his role
principally encompassed equity capital markets and
takeover transactions involving numerous initial public
offerings and secondary market transactions. Andy is a
director of Barramundi, Marlin Global, Briscoe Group,
Coupe Consulting and Gentrack Group. He is also
Chair of the New Zealand Takeovers Panel and Deputy
Chair of Television New Zealand. Andy’s principal
place of residence is Hamilton.
Andy was first appointed to the Kingfish board on
1 March 2013.
Carol Campbell BCom, CA
Chair of Audit and Risk Committee
Independent Director
Carol Campbell is a chartered accountant and
a member of Chartered Accountants Australia
and New Zealand. Carol has extensive financial
experience and a sound understanding of efficient
Board governance. Carol holds a number of
directorships across a broad spectrum of companies
including T&G Global, New Zealand Post, NZME
and Kiwibank. Carol is also a director of Barramundi
and Marlin Global. Carol was a director of The
Business Advisory Group, a chartered accountancy
practice, for 11 years and prior to that a partner at
Ernst & Young for over 25 years. Carol’s principal
place of residence is Auckland.
Carol was first appointed to the Kingfish board on
5 June 2012.
Carmel Fisher CNZM, BCA, INFINZ (Fellow)
Director
Carmel Fisher established Fisher Funds Management
Limited in 1998. Carmel’s interest and involvement in
the New Zealand share market spans over 30 years
and she is widely recognised as one of New Zealand’s
pre-eminent investment professionals. Carmel was an
investment analyst and portfolio manager for several
stockbroking and institutional firms before launching
Fisher Funds as a boutique fund manager. She was
managing director of Fisher Funds for 20 years before
retiring and selling the company in 2017. Carmel is
also a director of Barramundi, Marlin Global and
New Zealand Trade & Enterprise. Carmel’s principal
place of residence is Auckland.
Carmel was made a Companion of the New Zealand
Order of Merit in the 2019 New Year's honours for her
services to the New Zealand finance industry.
Carmel was first appointed to the Kingfish board on
30 January 2004.
BOARD OF DIRECTORS
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FOR THE YEAR ENDED 31 MARCH 2019
CORPORATE GOVERNANCE STATEMENT
Kingfish’s board recognises the importance of good
corporate governance and is committed to ensuring
that the company meets best practice governance
principles to the extent that it is appropriate for the
nature of the Kingfish operations. Strong corporate
governance practices encourage the creation of
value for Kingfish shareholders, while ensuring the
highest standards of ethical conduct and providing
accountability and control systems commensurate with
the risks involved.
The board is responsible for establishing and
implementing the company’s corporate governance
frameworks, and is committed to fulfilling this role in
accordance with best practice having appropriate
regard to applicable laws, the NZX Corporate
Governance Best Practice Code (“NZX Code”)
and the Financial Markets Authority Corporate
Governance - Principles and Guidelines. The board
oversees the management of Kingfish, with the
day-to-day management responsibilities of Kingfish
being delegated to Fisher Funds Management Limited
(“Fisher Funds” or “the Manager”).
As at 31 March 2019, Kingfish was in compliance
with the NZX Code, with the exception of
recommendations 4.3
1
and 5.3
2
for the reasons
explained under the relevant principles.
The corporate governance policies and procedures,
and board and committee charters, are regularly
reviewed by the board against the corporate
governance standards set by NZX, any regulatory
changes and developments in corporate governance
practices.
The Kingfish constitution and each of the charters,
codes and policies referred to in this section are
available on the Kingfish website (www.kingfish.
co.nz) under the “Policies” section.
Principle 1 – Code of ethical behaviour
Directors should set high standards of ethical
behaviour, model this behaviour and hold
management accountable for these standards being
followed throughout the organisation.
CODE OF ETHICS & STANDARDS OF
PROFESSIONAL CONDUCT
Kingfish’s Code of Ethics & Standards of Professional
Conduct details the ethical and professional
behavioural standards required of the directors
and those employees of the Manager who work on
Kingfish matters.
The Code of Ethics & Standards of Professional Conduct
covers a wide range of areas including: standards of
behaviour, conflicts of interest, proper use of company
information and assets, compliance with laws and
policies, reporting concerns and receiving gifts.
Any person who becomes aware of a breach or
suspected breach of the Code of Ethics & Standards of
Professional Conduct is required to report it immediately
in accordance with the procedure set out in the Code of
Ethics & Standards of Professional Conduct.
Training on the Code of Ethics & Standards of
Professional Conduct is included as part of the
induction process for new directors and relevant
employees of the Manager.
SECURITIES TRADING POLICY
The Securities Trading Policy details the trading
restrictions on persons nominated by Kingfish (including
its directors and employees of the Manager who
work on Kingfish matters) in Kingfish shares and other
securities.
In relation to Kingfish shares, nominated persons, with
the permission of the board of Kingfish, may trade
in Kingfish shares only during the trading window
commencing immediately after Kingfish’s weekly
disclosure of its net asset value to the New Zealand
Stock Exchange (“NZX”) and ending at the close
of trading two days following the net asset value
disclosure.
Nominated persons may not trade in Kingfish shares
when they have price sensitive information that is not
publicly available.
CONFLICTS OF INTEREST POLICY
The Conflicts of Interest Policy outlines the board’s
policy on conflicts of interest. The policy details the
process to be adopted for identifying conflicts of
interests and managing any such conflicts.
Principle 2 – Board composition and performance
To ensure an effective board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
BOARD CHARTER
Kingfish’s board operates under a written charter which
defines the respective functions and responsibilities
of the board, focusing on the values, principles and
practices that provide the corporate governance
framework.
1
Kingfish does not have a formal environmental, social and governance (ESG) framework.
2
There is no CEO remuneration disclosure as Kingfish delegates its management personnel requirements to Fisher Funds pursuant
to an Administration Services Agreement.
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The board has overall responsibility for all decision
making within Kingfish. The board is responsible for
the direction and control of Kingfish and is accountable
to shareholders and others for Kingfish’s performance
and its compliance with the appropriate laws and
standards. The board has delegated the day-to-day
management of Kingfish to the Manager.
The board uses committees to address certain matters
that require detailed consideration. The board retains
ultimate responsibility for the function of its committees
and determines their responsibilities. The board is
assisted in meeting its responsibilities by receiving
reports and plans from Fisher Funds and through its
annual work programme.
Directors have access to key employees of the
Manager who are connected to the activities of
Kingfish and can request any information they consider
necessary for informed decision making.
NOMINATION AND APPOINTMENT OF
DIRECTORS
In accordance with Kingfish’s constitution and NZX
Listing Rules, the directors are required to retire by
rotation and may offer themselves for re-election
by shareholders each year. Procedures for the
appointment and removal of directors are also
governed by the constitution. The Remuneration and
Nominations Committee is responsible for identifying
and nominating candidates to fill director vacancies for
board approval.
WRITTEN AGREEMENT
The company provides a letter of appointment to each
newly appointed director setting out the terms of their
appointment. The letter includes information regarding
the board’s responsibilities, expectations of directors,
tenure and independence, expected time commitments,
indemnity and insurance provisions, declaration of
interests and confidentiality. New directors are required
to consent to act as a director.
DIRECTOR INFORMATION AND INDEPENDENCE
The board comprises four directors with diverse
backgrounds, skills, knowledge, experience and
perspectives. Information about each director including
a profile of experience is available on page 28 of this
Annual Report and also on the Kingfish website.
The board takes into account guidance provided under
the NZX Main Board/Debt Market Listing Rules in
determining the independence of directors. Director
independence is considered annually. Directors have
undertaken to inform the board as soon as practicable
if they think their status as an independent director has
or may have changed.
CORPORATE GOVERNANCE STATEMENT CONTINUED
As at 31 March 2019, the board considers that Alistair
Ryan (Chair), Carol Campbell, and Andy Coupe are
independent directors. As at 31 March 2019, the board
considers that Carmel Fisher is not an independent
director by virtue of the previous roles she held within
Fisher Funds.
Information in respect of directors’ ownership interests
is available on page 60.
DIVERSITY
Kingfish has a formal Diversity Policy. The board views
diversity as including but not being limited to, skills,
qualifications, experience, gender, race, age, ethnicity
and cultural background. The board recognises that
having a diverse board will enhance effectiveness in
key areas.
All appointments to the board will be based on merit,
and will include consideration of the board’s diversity
needs, including gender diversity. Under the policy,
the principal measurable diversity objective is to
embed gender diversity as an active consideration in
all succession planning for board positions. During the
year, there were no appointments to the board.
The board’s gender composition was as follows:
NumberProportion
2019FemaleMaleFemaleMale
Directors2250%50%
NumberProportion
2018FemaleMaleFemaleMale
Directors2250%50%
The board believes that Kingfish has achieved the
objectives set out in its Diversity Policy for the year
ended 31 March 2019.
DIRECTOR TRAINING
All directors are responsible for ensuring they remain
current in understanding their duties as directors. To
ensure ongoing education, directors are regularly
informed of developments that affect the company’s
industry and business environment.
ASSESSMENT OF DIRECTOR PERFORMANCE
The Remuneration and Nominations Committee
conducts a formal review of director, committee and
board performance annually. Appropriate strategies
for improvement are recommended to the board as
and when required. The Chair of the board also has
discussions with directors on individual performance.
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SEPARATION OF THE CHAIR AND CHIEF
EXECUTIVE
Kingfish delegates its management personnel
requirements to Fisher Funds pursuant to an
Administration Services Agreement. The Chair of
Kingfish is a different person to the Chief Executive of
Fisher Funds.
Principle 3 – Board committees
The board should use committees where this will
enhance its effectiveness in key areas, while still
retaining board responsibility.
The board has three standing committees: the
Audit and Risk Committee, the Remuneration and
Nominations Committee and the Investment Committee.
Each committee operates under a charter approved by
the board, and any recommendations they make are
recommendations to the board. The charter of each
committee is reviewed annually.
DIRECTOR MEETING ATTENDANCE
A total of eight board meetings, two Audit and
Risk Committee meetings, one Remuneration and
Nominations Committee meeting and one Investment
Committee meeting were held in the 2019 financial
year. Director attendance at board meetings and
committee member attendance at committee meetings
is shown below.
DirectorBoard
Audit and
Risk
Committee
Remuneration
and
Nominations
Committee
Investment
Committee
Carol
Campbell
8/82/21/11/1
Andy
Coupe
8/82/21/11/1
Carmel
Fisher
8/82/2*1/11/1
Alistair
Ryan
8/82/21/11/1
* Carmel Fisher was an attendee at the Audit and Risk
Committee meetings.
AUDIT AND RISK COMMITTEE
The Audit and Risk Committee Charter sets out the
objectives of the Audit and Risk Committee which
are to provide assistance to the board in fulfilling its
responsibilities in relation to the company’s financial
reporting, internal controls structure, risk management
systems and the external audit function.
The Committee focuses on audit and risk management
and specifically addresses responsibilities relative to
financial reporting and regulatory compliance.
The Audit and Risk Committee is accountable for
ensuring the performance and independence of the
external auditor, including that the external auditor or
lead audit partner is changed at least every five years.
The Audit and Risk Committee also reviews the
appropriateness of any non audit services and
recommends to the board which services, other
than the statutory audit, may be provided by
PricewaterhouseCoopers as auditor.
The auditor has a clear line of direct communication
at any time with either the Chair of the Audit and Risk
Committee or the Chair of the board, both of whom are
independent directors. During the year, the Audit and
Risk Committee held private sessions with the auditor.
The Audit and Risk Committee currently comprises
independent directors Carol Campbell (Chair), Alistair
Ryan and Andy Coupe, all of whom have appropriate
financial experience and an understanding of the
industry in which Kingfish operates.
The Audit and Risk Committee may have in attendance
the Corporate Manager and/or other employees of
the Manager and such other persons including the
external auditor, as it considers necessary to provide
appropriate information and explanations.
REMUNERATION AND NOMINATIONS
COMMITTEE
The Remuneration and Nominations Committee
Charter sets out the objectives of the Remuneration and
Nominations Committee, which are to set and review
the level of directors’ remuneration, ensure a formal
rigorous and transparent procedure for the appointment
of new directors to the board and evaluate the balance
of skills, knowledge and experience on the board.
The Remuneration and Nominations Committee also
assesses the performance of directors, the board and
board sub-committees.
The Remuneration and Nominations Committee
currently comprises independent directors Alistair
Ryan (Chair), Carol Campbell, and Andy Coupe; and
non-independent director Carmel Fisher.
INVESTMENT COMMITTEE
The Investment Committee Charter sets out the objective
of the Investment Committee which is to oversee the
investment management of Kingfish to ensure the
portfolio is managed in accordance with the investment
mandate and with the long-term performance
objectives of Kingfish.
The Investment Committee currently comprises
independent directors Andy Coupe (Chair), Carol
Campbell, and Alistair Ryan; and non-independent
director Carmel Fisher.
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CORPORATE GOVERNANCE STATEMENT CONTINUED
TAKEOVER RESPONSE PROTOCOLS
During the 2019 financial year, the board adopted
a formal Takeover Response Protocol as an internal
framework that sets out the process to be followed if
there is a takeover offer for Kingfish.
Principle 4 – Reporting and disclosure
The board should demand integrity in financial and
non-financial reporting, and in the timeliness and
balance of corporate disclosures.
CONTINUOUS DISCLOSURE
Kingfish is committed to promoting investor confidence
by providing complete and equal access to
information in accordance with the NZX Listing Rules.
Kingfish has a Continuous Disclosure Policy designed
to ensure this occurs. The Corporate Manager is
responsible for ensuring compliance with the NZX
continuous disclosure requirements and overseeing
and co-ordinating disclosure to the exchange.
CHARTERS AND POLICIES
The key corporate governance documents, including
policies and charters, are available on Kingfish’s
website under the “Policies” section.
FINANCIAL REPORTING
Kingfish believes its financial reporting is balanced,
clear and objective. Kingfish is committed to
ensuring integrity and timeliness in its financial and
non-financial reporting, ensuring the market and
shareholders are provided with an objective view on
the performance of the company.
The Audit and Risk Committee oversees the quality
and integrity of external financial reporting including
the accuracy, completeness and timeliness of financial
statements. The Audit and Risk Committee reviews
half-yearly and annual financial statements and
makes recommendations to the board concerning
accounting policies, areas of judgement, compliance
with accounting standards, stock exchange and legal
requirements and the results of the external audit.
As at 31 March 2019, Kingfish does not have a
formal environmental, social and governance (ESG)
framework. Kingfish will continue to assess whether it
is appropriate that an ESG framework is adopted in
the future.
Principle 5 – Remuneration
The remuneration of directors and executives should
be transparent, fair and reasonable.
DIRECTORS’ REMUNERATION
The Director Remuneration Policy sets out the structure
of the remuneration to non-executive directors, the
review process and reporting requirements.
Directors’ fees are determined by the board on
the recommendation of the Remuneration and
Nominations Committee within the aggregate amount
approved by shareholders. The current directors’
fee pool limit of $157,500 (plus GST if any) was
approved by shareholder resolution at the 2018
Annual Shareholders’ Meeting and became effective
on 1 July 2018.
Each year, the Remuneration and Nominations
Committee reviews the level of directors’ remuneration.
The Remuneration and Nominations Committee
considers the skills, performance, experience and level
of responsibility of directors when undertaking the
review, and is authorised to obtain independent advice
on market conditions.
The following table sets out the remuneration
received by each director from Kingfish for the year
ended 31 March 2019.
Directors’ remuneration* for the 12 months ended
31 March 2019
A B Ryan (Chair)$50,000
(1)
C A Campbell$ 3 7, 5 0 0
(2)
R A Coupe$ 3 7, 5 0 0
(3)
C M Fisher$24,375
*excludes GST
(1)
$4,979 of this amount (being 10% of the annual fee) was
applied to the purchase of 3,661 shares under the Kingfish
share purchase plan.
(2)
$3,735 of this amount (being 10% of the annual fee) was
applied to the purchase of 2,746 shares under the Kingfish
share purchase plan. C A Campbell receives $5,000 as
Chair of the Audit and Risk Committee.
(3)
$3,735 of this amount (being 10% of the annual fee) was
applied to the purchase of 2,746 shares under the Kingfish
share purchase plan. R A Coupe receives $5,000 as Chair
of the Investment Committee.
For the 2019 financial year, Carmel Fisher received a
director’s fee from 1 July 2018.
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Details of remuneration paid to directors are also
disclosed in note 11 to the financial statements. The
directors’ fees disclosed in the financial statements
include a portion of non-recoverable GST expensed
by Kingfish.
DIRECTORS’ SHAREHOLDING - SHARE PURCHASE
PLAN
A Share Purchase Plan was introduced by the board in
2012, which requires each director to allocate 10% of
their annual director’s fees to the purchase (on market)
of Kingfish shares. Once an individual director’s
shareholding reaches 50,000 shares, the director can
elect whether to continue with the plan. The intention of
the Share Purchase Plan is to further align the interests
of directors with those of shareholders.
CORPORATE MANAGEMENT REMUNERATION
Kingfish delegates its management personnel
requirements to Fisher Funds pursuant to an
Administration Services Agreement.
Principle 6 – Risk management
Directors should have a sound understanding of
the material risks faced by the issuer and how to
manage them. The board should regularly verify that
the issuer has appropriate processes that identify
and manage potential and material risks.
RISK MANAGEMENT FRAMEWORK
The board has overall responsibility for Kingfish’s system
of risk management and internal control. Kingfish has
in place policies and procedures to identify areas of
significant business risk and implements procedures to
manage those risks effectively.
Key risk management tools used by Kingfish include
the Audit and Risk Committee function, outsourcing of
certain functions to service providers, internal controls,
financial and compliance reporting procedures and
processes and business continuity planning. Kingfish also
maintains insurance policies that it considers adequate
to meet its insurable risks.
The Audit and Risk Committee and board receive regular
reports on the operation of risk management policies
and procedures. Significant risks are discussed at each
board meeting, and/or as required.
In addition to Kingfish’s policies and procedures in
place to manage business risks, Fisher Funds has its own
comprehensive risk management policy. The board is
informed of any changes to Fisher Funds’ policy.
HEALTH AND SAFETY
Kingfish’s Manager operates under a Health and
Safety Policy. Under this policy, Fisher Funds assumes
responsibility for the health and safety of its employees.
Principle 7 – Auditors
The board should ensure the quality and
independence of the external audit process.
Kingfish’s Audit and Risk Committee makes
recommendations to the board on the appointment
of the external auditor. The Audit and Risk Committee
monitors the independence and effectiveness of the
external auditor and approves and reviews any non-
audit services performed by the external auditor. An
External Auditor Independence Policy, which documents
the framework of Kingfish’s relationship with its external
auditor, was adopted in May 2018.
The Audit and Risk Committee meets with the external
auditor to approve their terms of engagement, audit
partner rotation (at least every five years) and audit fee,
and to review and provide feedback in respect of the
annual audit plan. The Audit and Risk Committee holds
private sessions with the auditor.
Kingfish’s current external auditor is
PricewaterhouseCoopers (“PwC”), was appointed by
shareholders at the 2005 annual meeting in accordance
with the provisions of the Companies Act 1993 (“the
Act”). PwC is automatically reappointed as auditor
under Part 11, Section 207T of the Act.
The Audit and Risk Committee has assessed PwC to be
independent and confirmed that the non-audit services
provided in relation to confirming the amounts used in
the performance fee calculation has not compromised
PwC’s independence.
PwC, as external auditor of the 2019 financial
statements, is invited to attend this year’s annual
meeting and will be available to answer questions
about the conduct of the audit, preparation and content
of the auditor’s report, accounting policies adopted
by Kingfish and their independence in relation to the
conduct of the audit.
Kingfish does not have an internal audit function,
however the company fosters a culture of excellence in
all areas of risk management and takes all operating
and compliance risk obligations seriously. Kingfish
delegates the day-to-day management responsibilities to
Fisher Funds and the designated Corporate Manager is
responsible for operational and compliance risks across
Kingfish’s business.
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CORPORATE GOVERNANCE STATEMENT CONTINUED
Principle 8 – Shareholder rights and relations
The board should respect the rights of shareholders
and foster constructive relationships with
shareholders that encourage them to engage with
the issuer.
INFORMATION FOR SHAREHOLDERS
The board recognises the importance of providing to
shareholders comprehensive, timely and equal access
to information about its activities. The board aims to
ensure that shareholders have available to them all
information necessary to assess Kingfish’s performance.
Kingfish’s website, www.kingfish.co.nz, provides
information to shareholders and investors about the
company. Kingfish’s ‘Investor Centre’ contains a range
of information, including periodic and continuous
disclosures to the NZX, half year and annual reports
and content related to the Annual Shareholders’
Meeting. The website also contains information
about Kingfish’s directors, copies of key corporate
governance documents and general company
information.
The board recognises that other stakeholders may
have an interest in Kingfish’s activities. While there are
no specific stakeholders’ interests that are currently
identifiable, Kingfish will continue to review policies in
consideration of future interests.
COMMUNICATING WITH SHAREHOLDERS
Kingfish communicates regularly with its shareholders
through its monthly and quarterly updates. The
company receives questions from shareholders from
time to time, and has processes in place to ensure
shareholder communications are responded to within
a reasonable timeframe. The company’s website
sets out Kingfish’s appropriate contact details for
communications from shareholders. Kingfish also
provides options for shareholders to receive and send
communications by post or electronically.
SHAREHOLDER VOTING RIGHTS
In accordance with the Companies Act 1993, Kingfish’s
Constitution and the NZX Main board Listing Rules,
Kingfish refers major decisions, which may change
the nature of Kingfish, to shareholders for approval.
Kingfish conducts voting at its shareholder meetings by
way of poll and on the basis of one share, one vote.
NOTICE OF ANNUAL MEETING
The 2019 Kingfish Notice of Annual Meeting will
be sent to shareholders at least 28 days prior to the
meeting and will be published on the company’s
website.
This year’s meeting will be held at 10.30am on 31
July 2019, at the Ellerslie Event Centre in Auckland.
Full participation of shareholders is encouraged at the
annual meeting and shareholders are encouraged to
submit questions in writing prior to the meeting.
MANAGEMENT AGREEMENT RENEWAL
The Management Agreement between Kingfish and
Fisher Funds is subject to renewal every five years. The
Management Agreement is next subject to renewal in
2024.
NZX WAIVERS
Kingfish outsources all investment management
functions and administration services to Fisher
Funds under the Management Agreement entered
into when Kingfish first listed. The Management
Agreement has been amended to reflect the evolving
relationship between Kingfish and Fisher Funds, with
such amendments being largely administrative. Since
December 2014, administration services previously
provided for in the Management Agreement have
been recorded in a separate Administration Services
Agreement. The rationale for this change was to create
efficiencies for Kingfish across staff utilisation and
costs. There was no substantive change to the nature or
scope of services or the actual costs payable.
Kingfish was granted a waiver by NZX Regulation
on 30 May 2017 from (pre 1 January 2019) NZX
Main board Listing Rule 9.2.1 so that it is not required
to obtain shareholder approval for the entry into
the Administration Services Agreement and the
amendments to the Management Agreement. The
waiver is provided on the conditions specified in
paragraph 2 of the waiver decision, which is available
on Kingfish’s website: www.kingfish.co.nz/
investor-centre/market-announcements/.
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FOR THE YEAR ENDED 31 MARCH 2019
We present the financial statements for Kingfish Limited for the year ended 31 March 2019.
We have ensured that the financial statements for Kingfish Limited present fairly the financial position of the
Company as at 31 March 2019 and its financial performance and cash flows for the year ended on that date.
We have ensured that the accounting policies used by the Company comply with generally accepted
accounting practice in New Zealand and believe that proper accounting records have been kept. We have
ensured compliance of the financial statements with the Financial Markets Conduct Act 2013.
We also consider that adequate controls are in place to safeguard the Company’s assets and to prevent and
detect fraud and other irregularities.
The Kingfish Board authorised these financial statements for issue on 24 May 2019.

Alistair Ryan Carmel Fisher

Carol Campbell Andy Coupe
DIRECTORS’ STATEMENT
OF RESPONSIBILITY
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FINANCIAL
STATEMENTS CONTENTS
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37Statement of Comprehensive Income
38Statement of Changes in Equity
39Statement of Financial Position
40Statement of Cash Flows
41Notes to the Financial Statements
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Notes
2019
$000
2018
$000
Interest income 279 237
Dividend income 6,545 7, 6 7 2
Net changes in fair value of investments 2 49, 4 8 8 32,493
Other income3 0 2,959
Total net income 5 6, 312 4 3, 3 61
Operating expenses4 9,170 6,996
Operating profit before tax 4 7, 1 4 2 36,365
Total tax expense5 79 39
Net operating profit after tax attributable to shareholders 47,063 36,326
Total comprehensive income after tax attributable to shareholders 47,063 36,326
Basic earnings per share7 24.24c 19. 62 c
Diluted earnings per share7 23.81c 19. 51c
The accompanying notes form an integral part of these financial statements.
FOR THE YEAR ENDED 31 MARCH 2019
STATEMENT OF COMPREHENSIVE INCOME
KINGFISH LIMITED
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Attributable to shareholders of the company
Notes


Share
Capital
$000
Performance
Fee Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Balance at 31 March 2017 16 4, 729 417 54,924 220,070
Comprehensive income
Profit for the year 0 0 36,326 36,326
Other comprehensive income 0 0 0 0
Total comprehensive income for the year ended 31 March 2018 0 0 36,326 36,326
Transactions with owners
Dividends paid6 0 0 (21,215) (21,215)
Share buybacks (3,095) 0 0 (3,095)
Shares issued from treasury stock under dividend
reinvestment plan6 2,871 0 0 2,871
New shares issued under dividend reinvestment plan6 5,057 0 0 5,057
Shares issued for warrants exercised6 35,14 8 0 0 35,14 8
Prior year Manager's performance fee settled with
ordinary shares 297 (301) 0 (4)
Prior year Manager's performance fee settled with
treasury stock 116 ( 116 ) 0 0
Manager's performance fee to be settled with ordinary shares 0 1,118 0 1,118
Total transactions with owners the year ended 31 March 2018 40,394 701 (21,215) 19, 8 8 0
Balance at 31 March 2018 2 05,123 1,118 70,035 2 76,2 76
Comprehensive income
Profit for the year 0 0 4 7, 0 6 3 4 7, 0 6 3
Other comprehensive income 0 0 0 0
Total comprehensive income for the year ended 31 March 2019 0 0 47,063 47,063
Transactions with owners
Dividends paid6 0 0 (22,816) (22,816)
Share buybacks (546) 0 0 (546)
Shares issued from treasury stock under dividend
reinvestment plan6 462 0 0 462
New shares issued under dividend reinvestment plan6 8,16 5 0 0 8,16 5
Prior year Manager's performance fee settled with
ordinary shares 1,0 89 (1,0 96) 0 (7)
Prior year Manager's performance fee settled with
treasury stock 22 (22) 0 0
Manager's performance fee to be settled with ordinary shares 0 2,043 0 2,043
Warrant issue costs6 (19) 0 0 (19)
Total transactions with owners for the year ended 31 March 2019 9,17 3 925 (22,816) (12, 718)
Balance at 31 March 2019 214,296 2,043 94,282 310,621
The accompanying notes form an integral part of these financial statements.
FOR THE YEAR ENDED 31 MARCH 2019
STATEMENT OF CHANGES IN EQUITY
KINGFISH LIMITED
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Notes
2019
$000
2018
$000
SHAREHOLDERS' EQUITY6310,621 2 76,2 76
Represented by:
ASSETS
Current Assets
Cash and cash equivalents 10 19, 2 74 10, 768
Trade and other receivables 812,810 4,317
Investments at fair value through profit or loss 2 281, 547 264,395
Current tax receivable5 0 10
Total Current Assets313,631 2 7 9, 4 9 0
TOTAL ASSETS313,631 2 7 9, 4 9 0
LIABILITIES
Current Liabilities
Trade and other payables 9 3,010 3,214
Total Current Liabilities 3,010 3,214
TOTAL LIABILITIES 3,010 3,214
NET ASSETS310,621 2 76,2 76
These financial statements have been authorised for issue for and on behalf of the Board by:

A B Ryan / Chair C A Campbell / Chair of the Audit and Risk Committee
24 May 2019 24 May 2019
The accompanying notes form an integral part of these financial statements.
AS AT 31 MARCH 2019
STATEMENT OF FINANCIAL POSITION
KINGFISH LIMITED
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FOR THE YEAR ENDED 31 MARCH 2019
Notes
2019
$000
2018
$000
Operating Activities
Sale of investments 92,589 78,079
Interest received 280 236
Dividends received 6,636 7, 5 1 6
Other income received 3,10 9 (10)
Purchase of investments ( 73,14 0 ) (91,0 68)
Operating expenses (6,147 ) (5,316)
Taxes paid (69) (39)
Net cash inflows/(outflows) from operating activities10 23,258 (10,602)
Financing Activities
Proceeds from warrants exercised 0 35,14 8
Share buybacks (544) (3,095)
Warrant issue costs (19) 0
Dividends paid (net of dividends reinvested) (14,189) (13,287 )
Net cash (outflows)/inflows from financing activities (14,752) 18, 76 6
Net increase in cash and cash equivalents held 8,506 8,16 4
Cash and cash equivalents at beginning of the year 10, 768 2,604
Cash and cash equivalents at end of the year10 19, 2 74 10, 76 8
The accompanying notes form an integral part of these financial statements.
STATEMENT OF CASH FLOWS
KINGFISH LIMITED
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FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS
KINGFISH LIMITED
NOTE 1 BASIS OF ACCOUNTING
Reporting Entity
Kingfish Limited ("Kingfish" or "the Company") is listed on the NZX Main Board, is registered in New
Zealand under the Companies Act 1993 and is an FMC Reporting Entity under the Financial Markets
Conduct Act 2013.
The Company's registered office is Level 1, 67 - 73 Hurstmere Road, Takapuna, Auckland.
Basis of Preparation
These financial statements have been prepared in accordance with the requirements of Part 7 of
the Financial Markets Conduct Act 2013, the NZX Main Board listing rules and New Zealand
Generally Accepted Accounting Practice (NZ GAAP). They comply with New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS) as appropriate for profit-oriented entities, and
International Financial Reporting Standards (IFRS).
The financial statements have been prepared on the historical cost basis, as modified by the fair
valuation of certain assets as identified in specific accounting policies and in the accompanying notes.
The functional and reporting currency used to prepare the financial statements is New Zealand
dollars, rounded to the nearest one thousand dollars.
The financial statements include GST where it is charged by other parties as it cannot be reclaimed.
Accounting Policies
Accounting policies that summarise the recognition and measurement basis used and are relevant
to an understanding of the financial statements, are provided throughout the notes to the financial
statements and are designated by a
symbol.
The accounting policies adopted have been consistently applied to all years presented, unless
otherwise stated.
The Company adopted NZ IFRS 9 Financial Instruments (replacing NZ IAS 39 Financial Instruments:
Recognition and Measurement) from 1 April 2018 and applied the standard retrospectively, but
has elected not to restate comparative information. From 1 April 2018, the Company classifies the
financial assets and liabilities in the following measurement categories:
»those to be measured at fair value through profit or loss (previously measured as designated at fair
value through profit or loss and available-for-sale financial assets), and
»those to be measured at amortised cost (previously measured as loans and receivables).
The adoption of NZ IFRS 9 has had no material impact on the Company's financial statements and no
material adjustments are noted on transition.
Under NZ IFRS 9, on initial recognition of a financial asset, the Company needs to assess on
a forward looking basis, the expected credit loss associated with the financial assets carried
at amortised cost. At each reporting date, the credit risk of a financial asset, apart from trade
receivables, is assessed to determine whether there has been a significant increase in the credit risk.
During the assessment the Company will consider both forward looking information and the financial
history of counterparties to assess the probability of default or likelihood that full settlement is not
received. Trade receivables will be assessed against the simplified approach of a lifetime expected
loss allowance.
There are no other accounting standards that have been issued but are not yet effective that are
expected to have a material impact on these financial statements.
Critical Judgements, Estimates and Assumptions
The preparation of financial statements requires the directors to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses. Judgements are designated by a
j
symbol in the notes to the financial
statement. There were no material estimates or assumptions required in the preparation of these
financial statements.
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NOTE 1 BASIS OF ACCOUNTING CONTINUED
Authorisation of Financial Statements
The Kingfish Board of Directors authorised these financial statements for issue on 24 May 2019.
No party may change these financial statements after their issue.
NOTE 2 INVESTMENTS
j
Given that the investment portfolio is managed, and performance is evaluated on a fair value basis
in accordance with a documented investment strategy, Kingfish has classified all its investments at
fair value through profit or loss.
Investments are initially recognised at fair value and are subsequently revalued to reflect changes
in fair value. Net changes in the fair value of investments are recognised in the Statement of
Comprehensive Income.
Financial assets at fair value through profit or loss comprise of New Zealand listed equity
investment assets.
All purchases and sales of investments are recognised at trade date, which is the date the
Company commits to purchase or sell the investment and transaction costs are expensed as
incurred. When an investment is sold, any gain or loss arising on the sale is included in the
Statement of Comprehensive Income. Realised gains or losses are calculated as the difference
between the sale proceeds and the carrying amount of the item.
The fair value of listed equity investments traded in active markets are based on last sale prices
at balance date, except where the last sale price falls outside the bid-ask spread for a particular
investment, in which case the bid price will be used to value the investment.
Dividend income from investments is recognised in the Statement of Comprehensive Income when
the Company's right to receive payments is established (ex-dividend date).
Investments recognised at fair value are categorised according to a fair value hierarchy that shows
the extent of judgement used in determining their fair value. Where unadjusted quoted prices are
used, the investments are categorised as Level 1. When inputs derived from quoted prices are
used, the investments are categorised as Level 2. If inputs are not based on observable market
data, they are categorised as Level 3.
j
All listed equity investments held by Kingfish are categorised as Level 1. There have been no
transfers between levels of the fair value hierarchy during the year (31 March 2018: none).
There were no financial instruments classified as Level 2 or 3 at 31 March 2019 (31 March
2018: none).
NOTE 3 OTHER INCOME
2019
$000
2018
$000
GST refund (note 11) 0 2,968
Underwriting income 0 15
Foreign exchange losses on cash and cash equivalents 0 (24)
Total other income 0 2,959
FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
KINGFISH LIMITED
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NOTE 4 OPERATING EXPENSES
2019
$000
2018
$000
Management fees (note 11) 3,657 3,348
Performance fees (note 11) 4,322 2,370
Administration services (note 11) 159 159
Directors' fees (note 11) 168 126
Custody, accounting and brokerage 548 702
Investor relations and communications 128 122
NZX fees 62 60
Professional fees 40 30
Fees paid to the auditor:
Statutory audit and review of financial statements 39 38
Other assurance services
1
0 4
Non assurance services
1
2 6
Other operating expenses 45 31
Total operating expenses 9,17 0 6,996
1
Other assurance services relate to a share and warrant register audit and non-assurance services relate to
agreed upon procedures performed at the annual meeting and in respect of the performance fee calculation. No
other fees were paid to the auditor during the year (2018: nil).
NOTE 5 TA X ATION
Kingfish is a Portfolio Investment Entity ("PIE") for tax purposes.
Taxation expense comprises both current and deferred tax. Current tax is the expected tax
payable on the taxable income for the year, using tax rates enacted at balance date, and any
adjustment to tax payable in respect of previous years. Current tax for current and prior periods
is recognised as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax
(if any) is recognised as the difference between the carrying amounts of assets and liabilities in
the financial statements and the amounts used for taxation purposes. A deferred tax asset is only
recognised to the extent it is probable it will be utilised.
j
A deferred tax asset of $7,780,623 at 31 March 2019 (2018: $5,696,419) has not been
recognised as the tax structure of the Company is unlikely to lead to the utilisation of a deferred
tax asset. This unrecognised deferred tax asset is reviewed annually.
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NOTE 5 TAXATION CONTINUED
Taxation expense is determined as follows:
2019
$000
2018
$000
Operating profit before tax 4 7, 1 4 2 36,365
Non-taxable realised gain on investments (24,910) (20,191)
Non-taxable unrealised gain on investments (24,556) (12,189)
Imputation credits 2,133 2,325
Non-deductible expenditure 490 608
Taxable income 299 6,918
Tax at 28% 84 1,9 37
Imputation credits (2,133) (2,325)
Deferred tax not recognised2,085 427
Forfeit of foreign tax credits430
Total tax expense79 39
Taxation expense comprises:
Current tax79 39
79 39
Current tax balance
Opening balance 10 10
Current tax expense (79) (39)
Tax (refund)/paid69 39
Current tax receivable 0 10
Imputation credits
The imputation credits available for subsequent reporting periods total $501,366 (2018: $559,757).
This amount represents the balance of the imputation credit account at the end of the reporting
period, adjusted for imputation credits that will arise from the receipt of dividends recognised as a
receivable at 31 March 2019.
NOTE 6 SHAREHOLDERS' EQUITY
Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares and warrants are shown in equity as a deduction.
When shares are acquired by the Company, the amount of consideration paid is recognised
directly in equity. Acquired shares are classified as treasury stock and presented as a deduction
from share capital. When treasury stock is subsequently sold or reissued, the cost of treasury
stock is reversed and the realised gain or loss on sale or reissue, net of any directly attributable
incremental transaction costs, is recognised within share capital.
Kingfish has 197,889,673 fully paid ordinary shares on issue (2018: 190,935,279). All ordinary
shares are classified as equity, rank equally and have no par value. All shares carry an entitlement
to dividends and one vote is attached to each fully paid ordinary share.
FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
KINGFISH LIMITED
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Buybacks
Kingfish maintains an ongoing share buyback programme. For the year ended 31 March 2019,
Kingfish had acquired 395,172 (2018: 2,372,227) shares under the programme which allows up to
5% of the ordinary shares on issue (as at the date 12 months prior to the acquisition) to be acquired.
Shares acquired under the buyback programme are held as treasury stock and subsequently reissued
to shareholders under the dividend reinvestment plan. There were 46,377 shares held as treasury
stock at balance date (31 March 2018: 15,000 shares held as treasury stock).
Warrants
On 19 July 2018, 48,368,533 new Kingfish warrants were allotted and quoted on the NZX Main
Board on 20 July 2018. One new warrant was issued to all eligible shareholders for every four
shares held on record date (18 July 2018). The warrants are exercisable at $1.37 per warrant,
adjusted down for dividends declared during the period up to the exercise date of 12 July 2019.
Warrant holders can elect to exercise some or all of their warrants on the exercise date subject to
a minimum exercise of 200 warrants. The net cost of issuing the warrants is deducted from share
capital.
On 5 May 2017, 29,106,763 warrants were exercised at $1.21 per warrant and the remaining
9,069,890 warrants lapsed.
Dividends
Dividend distributions to the Company's shareholders are recognised as a liability in the financial
statements in the period in which the dividends are declared by the Kingfish board.
Kingfish has a distribution policy where 2% of average NAV is distributed each quarter. Dividends
paid during the year comprised:
2019
$000
Cents per
share
2018
$000
Cents per
share
29 Jun 2018 5,542 2.8929 Jun 2017 5 , 211 2.79
28 Sep 2018 5,798 3.0029 Sep 2017 5,197 2.77
21 Dec 2018 5,919 3.0422 Dec 2017 5,336 2.83
28 M ar 2019 5,557 2.8329 Mar 2018 5,471 2.89
22,816 11. 76 21,215 11. 2 8

Dividend Reinvestment Plan
Kingfish has a dividend reinvestment plan which provides ordinary shareholders with the option to
reinvest all or part of any cash dividends in fully paid ordinary shares at a 3% discount to the five-
day volume weighted average share price from the date the shares trade ex-entitlement. During the
year ended 31 March 2019, 6,509,043 ordinary shares totalling $8,627,664 (2018: 6,328,588
ordinary shares totalling $7,927,506) were issued in relation to the plan for the quarterly dividends
paid. To participate in the dividend reinvestment plan, a completed participation notice must be
received by Kingfish before the next dividend record date.
Performance Fee Reserve
The portion of any performance fee to be paid in ordinary shares is an equity share-based
payment and is recognised at fair value in an equity reserve until the ordinary shares are issued.
See note 11(ii) for further details.
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NOTE 7 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of ordinary shares on issue during the year. Diluted
earnings per share assumes conversion of all dilutive potential ordinary shares in determining the
denominator. Potential ordinary shares include outstanding warrants.
Basic earnings per share
2019
$000
2018
$000
Profit attributable to owners of the Company4 7, 0 6 336,326
Weighted average number of ordinary shares on issue net of
treasury stock ('000) 194,119 18 5,176
Basic earnings per share 24.24c 19. 62 c
Diluted earnings per share
2019
$000
2018
$000
Profit attributable to owners of the Company 4 7, 0 6 3 36,326
Weighted average number of ordinary shares on issue net of
treasury stock ('000) 194,119 18 5,176
Diluted effect of warrants on issue ('000) 2,162 173
Ordinary shares to be issued under performance fee arrangement ('000) 1, 4 0 9 8 41
1 9 7, 6 9 0 18 6,19 0
Diluted earnings per share 23.81c 19. 51c
FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
KINGFISH LIMITED
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NOTE 8 TRADE AND OTHER RECEIVABLES
Trade and other receivables are classified as financial assets at amortised cost and are initially
recognised at fair value, and subsequently measured at amortised cost less any provision for
impairment. Receivables are assessed on a case-by-case basis for impairment.
j
The trade and other receivables' carrying values are a reasonable approximation of fair value.
2019
$000
2018
$000
Dividends receivable 991 1,0 83
Interest receivable 0 1
Unsettled investment sales
1
11, 7 7 8 99
Related party receivable (note 11) 0 3,10 9
Other receivables 41 25
Total trade and other receivables12, 810 4, 317
1
On 6 March 2019, Kingfish accepted an unconditional and irrevocable takeover offer for the
Restaurant Brand shares subject to scaled back acceptance ratio. This has been settled on 2
April 2019.
NOTE 9 TRADE AND OTHER PAYABLES
Trade and other payables are classified as other financial liabilities and are initially recognised at
fair value, and subsequently measured at amortised cost.
j
The trade and other payables' carrying values are a reasonable approximation of fair value.
2019
$000
2018
$000
Related party payable (note 11) 2,620 1, 563
Unsettled investment purchases 334 1, 542
Other payables and accruals 56 109
Total trade and other payables 3,010 3,214
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NOTE 10 CASH AND CASH FLOW RECONCILIATION
Cash and Cash Equivalents
Cash and cash equivalents are classified as financial assets at amortised cost and comprise cash
on deposit at banks and short-term money market deposits.
2019
$000
2018
$000
Cash - New Zealand 19, 2 74 10, 768
Cash and Cash Equivalents 19, 2 74 10, 76 8
Reconciliation of Net Operating Profit after Tax to Net Cash Flows
from Operating Activities
2019
$000
2018
$000
Net operating profit after tax47,06336,326
Items not involving cash flows
Unrealised gains on revaluation of investments (24,556) (12,6 54)
(24,556) (12, 6 5 4)
Impact of changes in working capital items
(Decrease)/increase in fees and other payables (204) 2,155
(Increase)/decrease in interest, dividends and other receivables (8,493) 773
Change in current tax 10 0
(8,687) 2,928
Items relating to investments
Amount paid for purchases of investments ( 73,14 0 ) (91,0 68)
Amount received from sales of investments 92,589 77,999
Return of capital 0 80
Realised gains on investments (24,932) (19,8 41)
Decrease/(increase) in unsettled purchases of investments 1,20 8 (1, 422)
Increase/(decrease) in unsettled sales of investments 11, 6 7 9 (4,064)
7, 4 0 4 (3 8,316)
Other
Performance fee to be settled by issue of shares 2,043 1,118
Increase in share buybacks payable (2) 0
Expenses in relation to prior year's performance fee settled by
issue of shares (7) (4)
2,034 1,114
Net cash inflows/(outflows) from operating activities23,258 (10,602)
FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
KINGFISH LIMITED
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NOTE 11 RELATED PARTY INFORMATION
Parties are considered to be related if one party has the ability to control or exercise significant
influence over the other party in making financial or operational decisions.
Transactions with related parties
The Manager of Kingfish is Fisher Funds Management Limited ("Fisher Funds" or "the Manager").
Fisher Funds is a related party by virtue of the Management Agreement and having a director in
common for the first four months of the financial year. In return for the performance of its duties as
Manager, Fishers Funds is paid the following fees:
(i) Management fee: 1.25% (plus GST) per annum of the gross asset value, calculated weekly
and payable monthly in arrears. The fee reduces if the Manager underperforms, thereby aligning
the Manager's interests with those of the Kingfish shareholders. For every 1% underperformance
(relative to the change in the NZ 90 Day Bank Bill Index) the management fee percentage is
reduced by 0.1%, subject to a minimum 0.75% per annum management fee.
(ii) Performance fee: Fisher Funds may earn an annual performance fee of 15% (plus GST) of excess
returns over and above the performance fee hurdle return (being the change in the NZ 90 Day
Bank Bill Index plus 7%) subject to achieving the High Water Mark ("HWM").
The HWM is the dollar amount by which the net asset value per share exceeds the highest net asset
value per share (after adjustment for capital changes and distributions) at the end of any previous
calculation period in which a performance fee was payable, multiplied by the number of shares at
the end of the period.
In accordance with the terms of the Management Agreement, when a performance fee is earned,
it is paid within 30 days of the balance date and the Manager is required to apply half of the
performance fee to subscribe for shares, issued at a price equal to the audited net asset value per
share at balance date. Ordinary shares issued to the Manager rank equally in all respects with
existing ordinary shares in Kingfish.
Performance fees paid to the Manager are recognised as an expense in the Statement of
Comprehensive Income. The portion paid in share capital is an equity-settled share-based payment
and is recognised at the fair value of half of the performance fee expense (excluding GST) as an
equity reserve until the ordinary shares are issued. The component paid in cash is treated in line
with a typical operating expense.
At 31 March 2019 the Manager achieved a return in excess of the performance fee hurdle
return and the HWM. For the year ended 31 March 2019, excess returns of $29,492,561 (2018:
$16,217,166) were generated and the net asset value per share before the deduction of a
performance fee was $1.58 (2018: $1.45), which exceeded the HWM after adjustment for capital
changes and distributions of $1.31 (2018: $1.25). Accordingly, the Company has expensed a
performance fee of $4,321,567 (2018: $2,370,390) which is made up of $4,490,242 (including
GST) earned by the Manager and $168,675 from a post balance date adjustment. See note 17 for
full details of how the performance fee was settled for the year ended 31 March 2019.
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NOTE 11 RELATED PARTY INFORMATION CONTINUED
(iii) Administration fee: Fisher Funds provides corporate administration services and a monthly fee is
charged.
Fees earned and payable:
2019
$000
2018
$000
Fees paid to the Manager for the year ending 31 March
Management fees 3,657 3,348
Performance fees 4,322 2,370
Administration services 159 159
Total fees paid to the Manager 8,13 8 5,877
Fees payable to the Manager at 31 March
Management fees 329 297
Performance fees payable in cash 2,278 1,253
Administration services 13 13
Total fees payable to the Manager 2,620 1, 5 6 3
Investments by the Manager
The Manager held shares in, and received dividends from, the Company at 31 March 2019 which
total 1.81% of the total shares on issue (2018: 1.42% of the total shares on issue).
Investment transactions with related parties
Off-market transactions between Kingfish and other funds managed by Fisher Funds take place for
the purposes of rebalancing portfolios without incurring brokerage costs. These transactions are
conducted after the market has closed at last sale price (on an arm's length basis). Purchases for the
year ended 31 March 2019 totalled $3,527,455 (2018: $4,009,325) and sales totalled $453,396
(2018: $3,522,356).
GST Refund
Fisher Funds historically charged Kingfish GST at the standard GST rate on the provision of
investment services. In 2017 the Inland Revenue Department ("IRD") confirmed that the lower GST
fund manager rate of 1.5% could be charged to Kingfish (and this rate has been applied since 1
August 2017).
Fisher Funds received $3,108,799 being a refund of overcharged GST of $2,925,926 plus use of
money interest ("UOMI") of $182,873 on the provision of investment services to Kingfish for the
eight year period from 1 August 2009 to 31 July 2017. On receipt in early April 2018, Fisher Funds
passed the refund and UOMI to Kingfish.
In the 2018 Statement of Comprehensive Income, the portion of the GST refund relating to historical
years of $2,785,172 and UOMI of $182,873, which totalled $2,968,045, was recognised as
other income, with the balance of $140,754 relating to the 2018 year recognised as a reduction in
management fee expense. The GST refund and UOMI was excluded from the 2018 performance fee
calculation as it was not generated by investment activity.
Directors
The directors of Kingfish are the only key management personnel and they earn a fee for their
services. The directors' fee pool increased from $125,000 to $157,500 (plus GST if any) per annum
on 1 July 2018. The amount paid to directors is disclosed in note 4 under directors' fees (all four
independent directors earn a director's fee).
FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
KINGFISH LIMITED
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NOTE 12 FINANCIAL RISK MANAGEMENT
The Company is subject to a number of financial risks which arise as a result of its investment
activities, including market risk, credit risk and liquidity risk.
Market Risk
All equity investments present a risk of loss of capital, often due to factors beyond the Company's
control such as competition, regulatory changes, commodity price changes and changes in general
economic climates domestically and internationally. The Manager moderates this risk through careful
stock selection and diversification, daily monitoring of the market positions and regular reporting to
the Board of Directors. In addition, the Manager has to meet the criteria of authorised investments
within the prudential limits defined in the Management Agreement.
The maximum market risk resulting from financial instruments is determined as their fair value.
Price Risk
Price risk is the risk of gains or losses from changes in the market price of investments. The Company
is exposed to the risk of fluctuations in the underlying value of its listed portfolio companies. The
following companies individually comprise more than 10% of Kingfish's total assets at 31 March:
2019 2018
Fisher and Paykel Healthcare Corporation Ltd15%12%
The A2 Milk Company Limited15%8%
Mainfreight Ltd12%12%
Interest Rate Risk
Interest rate risk is the risk of movements in local interest rates. The Company is therefore exposed to
the risk of gains or losses or changes in interest income from movements in local interest rates. There
is no hedge against the risk of movements in interest rates.
The Company may use short-term fixed rate borrowings to fund investment opportunities. There were
no borrowings at 31 March 2019 (2018: nil).
Currency Risk
Currency risk is the risk that the fair value or future cash flows of an investment will fluctuate because
of changes in foreign exchange rates. The Company generally holds assets denominated in New
Zealand dollars and is therefore not directly exposed to currency risk. The portfolio companies that
Kingfish invests in may be affected by currency risk that may impact on the market value of the
underlying portfolio company.
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NOTE 12 FINANCIAL RISK MANAGEMENT CONTINUED
Sensitivity Analysis
The table below summarises the impact on net operating profit after tax and shareholders' equity to
reasonably possible changes in the carrying value of financial instruments to market risk exposure at
31 March as follows:
2019
$000
2018
$000
Price risk
1
Investments at fair value
through profit or loss
(listed) Carrying value 281, 547 264,395
Impact of a 10% change in market prices: +/- 28,155 26,440
Interest rate risk
2
Cash and cash
equivalents Carrying value 19, 2 74 10, 768
Impact of a 1% change in interest rates: +/- 193 108
1
A variable of 10% was selected for price risk as this is a reasonably expected movement based on historic trends in
equity prices.
2
A variable of 1% was selected as this is a reasonably expected movement based on historical volatility. The
percentage movement for the interest rate sensitivity relates to an absolute change in the interest rate rather than a
percentage change in interest rate.
Credit Risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. In the normal course of its business, the Company is exposed to credit risk from
transactions with its counterparties.
The Company measures credit risk and expected credit losses using probability of default, exposure
at default and loss given default. Management considers both historical analysis and forward looking
information in determining any expected credit loss. At 31 March 2019 and 31 March 2018, all other
receivables, and cash are held with counterparties with a credit rating of S&P A-1+ or equivalent and
are normally settled within three business days. Management considers the probability of default to be
close to zero as the counterparties have a strong capacity to meet their contractual obligations in the
near term. As a result, no loss allowance has been recognised based on 12 month expected credit losses
as any such impairment would be wholly insignificant to the Company.
Other than cash at bank and short term unsettled trades, there are no significant concentrations of
credit risk. The Company does not expect non-performance by counterparties, therefore no collateral or
security is required.
Listed securities are held by an independent custodian, Trustees Executors Limited. All transactions
in listed securities are paid for on delivery according to standard settlement instructions. Dividends
receivable are due from listed New Zealand companies and are normally settled within a month after
the Ex-Dividend date. The Company has cash with banks registered in New Zealand which carry a
minimum short-term credit rating of S&P A-1+ (or equivalent).
The maximum credit risk of financial assets is deemed to be their carrying amount as reported in the
Statement of Financial Position.
Liquidity Risk
Liquidity risk is the risk that the assets held by the Company cannot readily be converted to cash in
order to meet the Company's financial obligations as they fall due. The Company endeavours to invest
the proceeds from the issue of shares in appropriate investments while maintaining sufficient liquidity
(through daily cash monitoring) to meet working capital and investment requirements.
Liquidity to fund investment requirements can be augmented through the procurement of a debt facility
from a registered bank to a maximum value of 20% of the gross asset value of the Company. There were
no such debt facilities at 31 March 2019 (2018: nil).
FOR THE YEAR ENDED 31 MARCH 2019
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
KINGFISH LIMITED
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NOTE 13 CAPITAL RISK MANAGEMENT
The Company's objective is to prudently manage shareholder capital (share capital, reserves,
retained earnings and borrowings (if any)).
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders, undertake share buybacks, issue new shares
and make borrowings in the short term.
The Company was not subject to any externally imposed capital requirements during the year.
Since announcing a long-term distribution policy in June 2009, the Company continues to pay 2% of
average net asset value each quarter.
NOTE 14 NET ASSET VALUE
The audited net asset value of Kingfish as at 31 March 2019 was $1.57 per share (2018:
$1.45) calculated as the net assets of $310,621,130 divided by the number of shares on issue of
197,889,673 (2018: net assets of $276,275,597 and shares on issue of 190,935,279).
NOTE 15 COMMITMENTS AND CONTINGENT LIABILITIES
There were no unrecognised contractual commitments or contingent liabilities as at 31 March 2019
(2018: nil).
NOTE 16 FINANCIAL REPORTING BY SEGMENTS
The Company operates in the New Zealand investment industry.
The Company is managed as a whole and is considered to have a single operating segment. There
is no further division of the Company or internal segment reporting used by the Directors when
making strategic, investment or resource allocation decisions.
There has been no change to the operating segments during the year.
NOTE 17 SUBSEQUENT EVENTS
(i) In accordance with the terms of the Management Agreement, Kingfish settled the performance
fee due to Fisher Funds of $4,490,242 relating to the year ended 31 March 2019 on 30 April
2019 as follows:
1. Fisher Funds used half of the performance fee (excluding GST) to subscribe for Kingfish
ordinary shares at the audited 31 March 2019 net asset value per share of $1.57 (rounded
to two decimal places). Accordingly, Kingfish issued 1,409,150 ordinary shares totalling
$ 2 , 211,94 2 ;
2. The balance of $2,278,300 (including GST) was paid in cash to Fisher Funds.
(ii) A post balance date adjustment of $168,675 was made to reduce the cost of the performance
fee, to recognise the difference between audited 31 March 2019 net asset value per share
($1.57) and the share price on 30 April 2019 when the performance fee was paid to Fisher
Funds ($1.45); and
(iii) The Board declared a dividend of 3.07 cents per share on 20 May 2019. The record date for
this dividend is 13 June 2019 with a payment date of 27 June 2019.
On 29 March 2019, the Company announced a change in the performance fee structure. The Board
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.
There were no other events which require adjustment to or disclosure in these financial statements.
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PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s report
To the shareholders of Kingfish Limited
Kingfish Limited’s financial statements comprise:
• the statement of financial position as at 31 March 2019;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements which include significant accounting policies.
Our opinion
In our opinion, the financial statements of Kingfish Limited (the Company), present fairly, in all
material respects, the financial position of the Company as at 31 March 2019, its financial performance
and its cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS) and International Financial Reporting
Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)
(ISAs NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the financial statements section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Company in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners (PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Our firm carries out an additional service for the Company in the area of agreed upon procedures in
relation to the performance fee calculation. The provision of this service has not impaired our
independence.


PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s report
To the shareholders of Kingfish Limited
Kingfish Limited’s financial statements comprise:
• the statement of financial position as at 31 March 2019;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements which include significant accounting policies.
Our opinion
In our opinion, the financial statements of Kingfish Limited (the Company), present fairly, in all
material respects, the financial position of the Company as at 31 March 2019, its financial performance
and its cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS) and International Financial Reporting
Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)
(ISAs NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the financial statements section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Company in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners (PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Our firm carries out an additional service for the Company in the area of agreed upon procedures in
relation to the performance fee calculation. The provision of this service has not impaired our
independence.
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PwC
Our audit approach
Overview

An audit is designed to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
Overall materiality: $1,553,000, which represents approximately 0.5% of the
net assets. We used this benchmark because, in our view the objective of the
Company is to provide investors with a total return on the assets, taking
account of both capital and income returns.
We agreed with the Audit and Risk Committee that we would report to them
misstatements identified during our audit above $150,000, as well as
misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Because of the significance of the investments to the financial statements, we
have determined that there is one key audit matter: valuation and existence of
investments at fair value through profit or loss.

Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Company materiality for the financial statements as a whole as set out above.
These, together with qualitative considerations, helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in the aggregate, on the financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the financial statements and
our application of materiality. As in all of our audits, we also addressed the risk of management
override of internal controls including among other matters, consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the financial statements as a whole, taking into account the structure of the Company, type
of investments held by the Company, the use of the third party service providers, the accounting
processes and controls, and the industry in which the Company operates.
The Directors are responsible for the governance and the control activities of the Company. The
Directors have delegated certain responsibilities to Fisher Funds Management Limited (the
Investment Manager) and Trustees Executors Limited (the Administrator). The Company has
appointed Trustees Executors Limited (the Custodian) to act as custodian of the Company’s
investments.
In establishing our overall audit approach we assessed the risk of material misstatement, taking into
account the nature, likelihood and potential magnitude of any misstatement. As part of our risk
assessment, we considered the Company’s interaction with the Investment Manager and
Administrator and the control environment in place at the Administrator and the Custodian.
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PwC
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. Given the nature of the Company, we have
one key audit matter: valuation and existence of investments at fair value through profit or loss. The
matter was addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on the matter.
Key audit matter How our audit addressed the key audit matter
Valuation and existence of investments at fair
value through profit or loss
Investments at fair value through profit or loss
(the investments) are valued at $281.5 million
and represent 90% of total assets.
Further disclosures on the investments are
included at note 2 to the financial statements.
This was an area of focus for our audit and an
area where significant audit effort was
directed.
As at 31 March 2019, all investments are in
companies that were listed on the NZX Main
Board and were actively traded with readily
available, quoted market prices.
All investments are held by the Custodian on
behalf of the Company and administered by
the Administrator.
Our audit procedures included updating our
understanding of the business processes employed by
the Company for accounting for, and valuing, their
investment portfolio.
We obtained confirmation from the Custodian that
the Company was the recorded owner of all the
investments.
We obtained copies of and assessed the
Administrator’s and Custodian’s Internal Controls
Reports for Custody, Investment Accounting and
Registry services for the periods ended 30 September
2018 and 31 March 2019.
We agreed the price for all investments held at 31
March 2019 to independent third party pricing
sources.
From the procedures performed, we have no matters
to report.
Information other than the financial statements and auditor’s report
The Directors are responsible for the annual report. The annual report is expected to be made available
to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information included in the annual
report and we do not and will not express any form of assurance conclusion on the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the Directors.
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PwC
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs NZ and ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-2/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Richard Day.
For and on behalf of:
Auckland
Chartered Accountants
24 May 2019
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz
Independent Auditor’s Report
to the shareholders of Kingfish Limited
Report on the Financial Statements
We have audited the financial statements of Kingfish Limited (“the company”) on pages 30 to 46, which
comprise the statement of financial position as at 31 March 2015, th e statement of comprehensive income, the
statement of changes in equity and the statement of cash flows for the year then ended, and the notes to the
financial statements that include a summary of significant accounting policies and other explanatory
information.
Directors’ Responsibility for the Financial Statements
The directors are responsible for the preparation and fair presentation of these financial statements in
accordance with New Zealand Equivalents to International Financial Reporting Standards and for such
internal controls as the directors determine are necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing (New Zealand). These standards require
that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers the internal controls relevant to the company’s preparation and fair
presentation of financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
We are independent of the company. Our firm carries out other assurance and non-assurance services for the
company. The provision of these other services has not impaired our independence.
Opinion
In our opinion, the financial statements on pages 30 to 46 present fairly, in all material respects, the financial
position of the company as at 31 March 2015, and its financial performance and cash flows
for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards.
Restriction on Use of our Report
This report is made solely to the company’s shareholders, as a body, in accordance with th e Companies Act
1993. Our audit work has been undertaken so that we might state those matters which we are required to state
to them in an auditor’s report and fo r no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company and the company’s shareholders, as a body,
for our audit work, for this report or for the opinions we have formed.
Chartered Accountants Auckland
18 May 2015
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SHAREHOLDER INFORMATION
SPREAD OF SHAREHOLDERS AS AT 10 MAY 2019
Holding Range# of Shareholders# of Shares% of total
1 to 999330154,6720.08
1,000 to 4,9999152,512,7441.26
5,000 to 9,9998355,891,2982.96
10,000 to 49,9992,16248,810,99124.50
50,000 to 99,99946831,970,14 016.04
100,000 to 499,99933562,906,80431. 57
500,000 +374 7, 0 1 2 ,1 7423.59
TOTAL5,08219 9, 2 5 8 , 8 2 3100%
20 LARGEST SHAREHOLDERS AS AT 10 MAY 2019
# of Shares% of Total
ASB NOMINEES LIMITED <339992 A/C>4,960,2192.49
ASB NOMINEES LIMITED <ACCOUNT 340941 - ML>4,902,0302.46
CUSTODIAL SERVICES LIMITED <A/C 6>3,18 6,8 4 81.60
CUSTODIAL SERVICES LIMITED <A/C 4>3,0 3 4,1531.52
STEPHEN JAMES THORNTON + BERNARDINA ALEIDA MARIA
SCHOLTEN + MACALISTER MAZENGARB TRUST COMPANY LIMITED
<THE THORNTON-SCHOLTEN FAMILY A>2,404,6871.21
FNZ CUSTODIANS LIMITED2,17 9, 7 231.09
MICHAEL JOHN EDGAR + SUSAN MARGARET NEMEC +
CHARTERHALL TRUSTEES LIMITED <EDGAR-NEMEC FAMILY A/C>1,626,24 50.82
FORSYTH BARR CUSTODIANS LIMITED <1-CUSTODY>1, 4 4 5,6 570.73
INVESTMENT CUSTODIAL SERVICES LIMITED <A/C C>1, 419,8 970.71
MURRAY JOHN LOMBARD ALDRIDGE + LESLEY ANN ALDRIDGE +
NICHOLAS CORPORATE TRUSTEE CO LTD <ALDRIDGE FAMILY A/C>1,393,8260.70
DAVID ROBERT APPLEBY + PRUDENCE JANE COTTER <DAVID APPLEBY
INVESTMENT A/C>1,200,0000.60
DAVID HUGH BROWN + SUSANNA LLEWELLYN BROWN1,150,0000.58
SEATON STUART JAMES BENNY1 , 0 5 7, 2 6 40.53
LLOYD JAMES CHRISTIE1,049,5040.53
CUSTODIAL SERVICES LIMITED <A/C 2>1 , 0 0 7,1 4 50.51
PAMELA JEAN GILLIES1,000,0000.50
ALBERT JOHN HARWOOD + MARLENE MARY HARWOOD1,000,0000.50
CUSTODIAL SERVICES LIMITED <A/C 3>952,5020.48
STEPHEN THOMAS WRIGHT875,3550.44
CITIBANK NOMINEES (NEW ZEALAND) LIMITED - NZCSD
<CNOM90>789,6090.40
TOTAL36,634,66418.40
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SPREAD OF WARRANT HOLDERS AS AT 10 MAY 2019
Holding Range# of Warrant Holders# of warrants% of Total
1 to 999931432,3580.89
1,000 to 4,9991,8754, 761,96 49.8 5
5,000 to 9,9997885,436,23511. 2 4
10,000 to 49,99972914,365,9322 9. 7
50,000 to 99,999966,532,22313.51
100,000 to 499,9996511,606,42224
500,000 +65,233,39910.82
TOTAL4,49048,368,533100%
20 LARGEST WARRANT HOLDERS AS AT 10 MAY 2019
# of Warrants% of Total
ASB NOMINEES LIMITED <ACCOUNT 340941 - ML>1,225,5082.53
TAREWAI FISHING COMPANY LIMITED1,213,0 692.51
ANTHONY FRANCIS O'DONNELL + EVONNE RUBY O'DONNELL880,0001.82
CUSTODIAL SERVICES LIMITED <A/C 6>796, 7121.65
CUSTODIAL SERVICES LIMITED <A/C 4>600,4981.24
OHARIU INVESTMENTS LIMITED5 1 7, 61 21.07
FORSYTH BARR CUSTODIANS LIMITED <1-CUSTODY>4 8 5,1681.0 0
FNZ CUSTODIANS LIMITED4 31,3150.89
HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD <HKBN90>4 0 4,1280.84
ASB NOMINEES LIMITED <A/C 210631 - ML>375,0000.78
STEPHEN JAMES THORNTON + BERNARDINA ALEIDA MARIA
SCHOLTEN + MACALISTER MAZENGARB TRUST COMPANY LIMITED
<THE THORNTON-SCHOLTEN FAMILY A>362,7930.75
INVESTMENT CUSTODIAL SERVICES LIMITED <A/C C>310,0380.64
STEVEN RICHARD LOCKWOOD3 0 9, 3940.64
DAVID ROBERT APPLEBY + PRUDENCE JANE COTTER <DAVID APPLEBY
INVESTMENT A/C>300,0000.62
TEMUCHIN LIMITED262,8170.54
LLOYD JAMES CHRISTIE262,3760.54
RICHARD ALEXANDER COUTTS256,2520.53
PAMELA JEAN GILLIES241,2500.50
ROSS SINCLAIR QUAYLE224,8270.46
ROBERT WONG + CHRISTEIN JOE WONG205,2060.42
TOTAL9,663,96319.9 7
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STATUTORY INFORMATION
DIRECTORS’ RELEVANT INTERESTS IN EQUITY SECURITIES AT 31 MARCH 2019
Interests Register
Kingfish is required to maintain an interests register in which the particulars of certain transactions and matters
involving the directors must be recorded. The interests register for Kingfish is available for inspection at its
registered office. Particulars of entries in the interests register as at 31 March 2019 are as follows:
Ordinary SharesWarrants
Held
Directly
Held by
Associated Persons
Held
Directly
Held by
Associated Persons
A B Ryan
(1)
3 7, 9 5 29,071
C M Fisher4,902,0301,225,508
C A Campbell
(2)
25,0065,853
R A Coupe
(3)
22,9325,367
(1)
A B Ryan purchased 3,661 shares in the year ended 31 March 2019, purchased on market as per the terms of
the share purchase plan (purchase price $1.36). A B Ryan acquired 2,439 shares in the year ended 31 March
2019, issued under the dividend reinvestment plan (average issue price $1.33).
(2)
C A Campbell purchased 2,746 shares in the year ended 31 March 2019, purchased on market as per the terms
of the share purchase plan (purchase price $1.36). C A Campbell acquired 2,093 shares in the year ended 31
March 2019, issued under the dividend reinvestment plan (average issue price $1.33).
(3)
R A Coupe purchased 2,746 shares in the year ended 31 March 2019, purchased on market as per the terms of
the share purchase plan (purchase price $1.36). R A Coupe acquired 1,920 shares in the year ended 31 March
2019, issued under the dividend reinvestment plan (average issue price $1.33).
DIRECTORS HOLDING OFFICE
Kingfish’s directors as at 31 March 2019 were:
»A B Ryan (Chair)
»C M Fisher
»C A Campbell
»R A Coupe
During the year, there were no appointments to the Board.
In accordance with the Kingfish constitution, at the 2018 Annual Shareholders’ Meeting, Carol Campbell retired
by rotation and being eligible was re elected. Alistair Ryan and Camel Fisher retire by rotation at the 2019 Annual
Shareholders’ Meeting and being eligible, offers themselves for re-election.
DIRECTORS’ INDEMNITY AND INSURANCE
Kingfish has arranged Directors’ and Officers’ liability insurance covering Directors acting on behalf of Kingfish.
Cover is for damages, judgements, fines, penalties, legal costs awarded and defence costs arising from wrongful
acts committed while acting for Kingfish. The types of acts that are not covered include dishonest, fraudulent,
malicious acts or omissions, wilful breach of statute or regulations.
Kingfish has granted an indemnity in favour of all current and future directors of the Company in accordance with
its constitution.
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EMPLOYEE REMUNERATION
Kingfish does not have any employees. Corporate management services are provided to Kingfish by Fisher Funds
Management Limited.
DIRECTORS’ RELEVANT INTERESTS
The following are relevant interests of Kingfish’s directors as at 31 March 2019:
A B RyanBarramundi LimitedDirector
Marlin Global LimitedDirector
Metlifecare LimitedDirector
Evolve Education Group Limited
1
Director
Kiwibank LimitedDirector
Audit Oversight CommitteeMember
C M Fisher Barramundi LimitedDirector
Marlin Global LimitedDirector
New Zealand Trade & EnterpriseDirector
C A CampbellBarramundi LimitedDirector
Marlin Global LimitedDirector
T&G Global LimitedDirector
Hick Bros Holdings Limited & subsidiary companies Director
Woodford Properties LimitedDirector
alphaXRT LimitedDirector
New Zealand Post LimitedDirector
Key Assets FoundationTrustee
Key Assets NZ LimitedDirector
Kiwibank LimitedDirector
Asset Plus LimitedDirector
NZME LimitedDirector
Nica Consulting LimitedDirector
Cord Bank LimitedDirector
T&G Insurance LimitedDirector
Bankside Chambers LimitedDirector
Chubb Insurance New Zealand LimitedDirector
R A CoupeBarramundi LimitedDirector
Marlin Global LimitedDirector
New Zealand Takeovers PanelChair
Coupe Consulting LimitedDirector
Gentrack Group LimitedDirector
Briscoe Group Limited Director
Television New Zealand LimitedDirector

1
Retired 15 June 2019
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AUDITOR’S REMUNERATION
During the 31 March 2019 year the following amounts were paid/payable to the auditor, PricewaterhouseCoopers
New Zealand.
$000
Statutory audit and review of financial statements39
Other assurance services0
Non assurance services2
PricewaterhouseCoopers New Zealand is a registered audit firm and its audit partners are licensed auditors under
the Auditor Regulation Act 2011.
DONATIONS
Kingfish did not make any donations during the year ended 31 March 2019.
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REGISTERED OFFICE
Kingfish Limited
Level 1
67 – 73 Hurstmere Road
Takapuna
Auckland 0622
DIRECTORS
Independent Directors
Alistair Ryan (Chair)
Carol Campbell
Andy Coupe
Director
Carmel Fisher
CORPORATE
MANAGEMENT TEAM
Wayne Burns
Beverley Sutton
MANAGER
Fisher Funds Management Limited
Level 1
67 – 73 Hurstmere Road
Takapuna
Auckland 0622
SHARE REGISTRAR
Computershare Investor
Services Limited
Level 2
159 Hurstmere Road
Takapuna
Auckland 0622
Private Bag 92119
Auckland 1142
Phone: +64 9 488 8777
Email: enquiry@computershare.co.nz
FOR MORE INFORMATION
For enquiries about transactions, changes of address and dividend payments, contact the share registrar above.
Alternatively, to change your address, update your payment instructions and to view your investment portfolio
including transactions online, please visit: www.investorcentre.com\NZ
FOR ENQUIRIES ABOUT KINGFISH CONTACT
Kingfish Limited, Level 1, 67 – 73 Hurstmere Road, Takapuna, Auckland 0622
Private Bag 93502, Takapuna, Auckland 0740

Phone: +64 9 489 7094 | Fax: +64 9 489 7139 | Email: enquire@kingfish.co.nz
The information contained in this annual report is provided for information purposes only and does not constitute an offer,
invitation, basis for a contract, financial advice, other advice or recommendation to conclude any transaction for the purchase
or sale of any security, loan or other instrument. In particular, the information contained in this annual report is not financial
advice for the purposes of the Financial Advisers Act 2008 and should not be relied upon when making an investment decision.
Professional financial advice from an authorised financial adviser should be taken before making an investment.
AUDITOR
PricewaterhouseCoopers
New Zealand
Level 8
188 Quay Street
Auckland 1142
SOLICITOR
Bell Gully
Level 21
48 Shortland Street
Auckland 1010
BANKER
ANZ Bank New Zealand Limited
23-29 Albert Street
Auckland 1010
NATURE OF BUSINESS
The principal activity of Kingfish
is investment in quality, growing
New Zealand companies.
DIRECTORY
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