KFL – December 2019 monthly update

1
Monthly Update
December 2019
A word from the Manager
Kingfish delivered a stellar adjusted NAV return of +7.8% in
November, outpacing the strong New Zealand share market
return of +4.9% (S&P/NZX50G).
The outperformance reflected very strong performance in a
number of our companies, notably: Pushpay (+21.0%), a2 Milk
(+19.4%), Ryman and Summerset (both +17.0%), and Fisher &
Paykel Healthcare (+15.7%).
The Portfolio
Fisher & Paykel Healthcare announced a strong financial
result, with a continuation of strong growth in its Hospital
segment driven by both hardware sales and growth in new
applications. Revenue from the new Vitera masks has offset
the decline in sales of some of the legacy obstructive sleep
apnea masks. We think the company continues to deliver
against its long-term growth potential and that Vitera and
another new mask flagged for release in coming months
could cause an acceleration in revenue growth.
Mainfreight reported solid growth in its first half result for
its 2020 fiscal year. New Zealand and Australia grew despite
slower economic growth, and positively the company flagged
it has seen better trading in the lead-in to Christmas. Revenue
growth in the US and Europe was lower than recent periods,
although the company flagged 30 new sales roles in Europe
which should see an improvement in new sales leads. Profit
margins in both the US and Europe were stronger than our
expectations as further progress has been made in increasing
line haul and warehouse utilisation and continuing to improve
operating disciplines.
Ryman Healthcare released its first half result slightly short
of expectations, but maintained guidance of delivery of 900
units for the full-year. The company continues to progress
towards its targeted build rate of 1600 units per annum
and announced another development site at Highett in
Melbourne. The company is holding an investor day in
Melbourne in December.
We attended a2 Milk’s annual meeting in Auckland. The
company provided a detailed guidance statement which
was more positive than most expectations. Many investors
and analysts had become fearful and lost confidence in
the company in recent months (while we had been buying
shares at much lower prices). The company also announced
a long-term incentive plan for management which sets clear
targets for strong growth in sales and profits.
Pushpay reported its first half result for the 2020 fiscal year.
It reiterated its full-year revenue guidance of US$121-124
million and is demonstrating strong control of costs, which
means profits are growing rapidly.
Vista hosted an investor day which largely focused on
providing more detail around the transition of its core
cinema software business to Software as a Service (SaaS).
The company had announced its plans to accelerate this
transition in August but had not provided much detail at
the time. The presentation clearly articulated the benefits
to customers from the transition and what is involved
operationally. There was also an update from data business
Movio, where the company unveiled the establishment of
a new Moviegoer Data Platform. This will act to accelerate
its entry into new geographical markets and introduce new
revenue opportunities.
Portfolio changes
There were no changes to our target portfolio weightings
over the month.
1
Share Price Discount to NAV (using NAV to four decimal places)
KFL NAV
$
1.64
SHARE PRICE
$
1.58
DISCOUNT
1
3.9
%
as at 30 November 2019
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
Key Details
as at 30 November 2019
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO
SIZE
15-25 stocks
INVESTMENT CRITERIA
Long-term growth
PERFORMANCE
OBJECTIVE
Long-term growth of capital and
dividends
TAX STATUS
Portfolio Investment Entity (PIE)
MANAGER
Fisher Funds Management
Limited
MANAGEMENT
FEE RATE
1.25% of gross asset value
(reduced by 0.10% for every
1% of underperformance
relative to the change in the
NZ 90 Day Bank Bill Index with
a floor of 0.75%)
PERFORMANCE
FEE HURDLE
Changes in the NZ 90 Day Bank
Bill Index + 7%
PERFORMANCE FEE
10% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$1.43
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
244m
MARKET
CAPITALISATION
$386m
GEARING
None (maximum permitted 20%
of gross asset value)
Sector Split
as at 30 November 2019
7
%
27
%
INDUSTRIALS
20
%

UTILITIES
INFORMATION
TECHNOLOGY
30
%
HEALTH
CARE
12
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+6.0%+12.3%+29.0%+15.2%+12.9%
Adjusted NAV Return+7.8%+9.3%+30.6%+17.6%+14.5%
Portfolio Performance
Gross Performance Return+8.7%+10.5%+36.0%+20.8%+17.4%
S&P/NZX50G Index+4.9%+5.2%+28.3%+18.0%+15.8%
Non-GAAP Financial Information
Kingfish uses non-GAAP measures, including adjusted net asset value, adjusted NAV return, gross performance return and total shareholder return. The rationale for using such non-GAAP measures is as follows:
»adjusted net asset value – the underlying value of the investment portfolio adjusted for capital allocation decisions after expenses, fees and tax,
»adjusted NAV return – the net return to an investor after expenses, fees and tax,
»gross performance return – the Manager’s portfolio performance in terms of stock selection, before expenses, fees and tax, and
»total shareholder return – the return to an investor who reinvests their dividends, and if in the money, exercises their warrants at warrant maturity date for additional shares.
All references to adjusted net asset value, adjusted NAV return, gross performance return and total shareholder return in this monthly update are to such non-GAAP measures. The calculations applied to non-GAAP
measures are described in the Kingfish Non-GAAP Financial Information Policy. A copy of the policy is available at http://kingfish.co.nz/about-kingfish/kingfish-policies/
Performance
to 30 November 2019

33
Total Shareholder Return
to 30 November 2019
Mar
2004
Mar
2005
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2014
Mar
2015
Mar
2013
Mar
2016
Share Price/Total Shareholder Return
$
2.50
$
1.50
Share PriceTotal Shareholder Return
$
4.50
$
5.50
$
0.50
$
0.00
Mar
2017
$
3.50
Mar
2018
Mar
2019
November’s Biggest Movers
Typically the Kingfish portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 8 stocks and cash.
5 Largest Portfolio Positions
as at 30 November 2019
PUSHPAY HOLDINGS
+21
%
THE A2 MILK
COMPANY
+19
%
SUMMERSET
GROUP
+17
%
RYMAN HEALTHCARE
+17
%
FISHER & PAYKEL
HEALTHCARE
+16
%
THE A2 MILK
COMPANY
17
%
FISHER & PAYKEL
HEALTHCARE
14
%
INFRATIL
13
%
MAINFREIGHT
9
%
SUMMERSET GROUP
8
%

Disclaimer: The information in this update has been prepared as at the date noted on the front page. The information has been prepared as a general summary of the matters covered only, and it is
by necessity brief. The information and opinions are based upon sources which are believed to be reliable, but Kingfish Limited and its officers and directors make no representation as to its accuracy
or completeness. The update is not intended to constitute professional or investment advice and should not be relied upon in making any investment decisions. Professional financial advice from an
authorised financial adviser should be taken before making an investment. To the extent that the update contains data relating to the historical performance of Kingfish Limited or its portfolio companies,
please note that fund performance can and will vary and that future results may have no correlation with results historically achieved.
Kingfish Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 489 7094 | Fax: +64 9 489 7139
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz | www.computershare.com/nz
About Kingfish
Kingfish is an investment company
listed on the New Zealand Stock
Exchange. The company gives
shareholders an opportunity to
invest in a diversified portfolio
of between 15 and 25 quality
growing New Zealand companies
through a single, professionally
managed investment. The aim
of Kingfish is to offer investors
competitive returns through
capital growth and dividends.
Capital Management Strategies
Regular Dividends
»Quarterly distribution policy introduced in
June 2009
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Kingfish may include dividends
received, interest income, investment gains
and/or return of capital
»Shareholders who prefer to have increased
capital rather than a regular income stream have
the opportunity to participate in the company’s
dividend reinvestment plan (DRP)
»Shares issued to DRP participants are at a 3%
discount to market price
»Kingfish became a portfolio investment entity on
1 October 2007. As a result, dividends paid to
New Zealand tax resident shareholders have not
been subject to further tax
Share Buyback Programme
»Kingfish has a buyback programme in place allowing
it (if it elects to do so) to acquire up to 12.2m of its
shares on market in the year to 31 October 2020
»Shares bought back by the company are held as
treasury stock
»Shares held as treasury stock are available to be re-
issued for the dividend reinvestment plan
Warrants
»Warrants put Kingfish in a better position to grow
further, operate efficiently and pursue other capital
structure initiatives as appropriate
»A warrant is the right, not the obligation, to purchase
an ordinary share in Kingfish at a fixed price on a
fixed date
»There are currently no warrants on issue
Management
Kingfish’s portfolio is managed
by Fisher Funds Management
Limited. Sam Dickie (Senior
Portfolio Manager) and Matt Peek
(Investment Analyst) have prime
responsibility for managing the
Kingfish portfolio. Together they
have over 30 years combined
experience and are very capable
of researching and investing in the
quality New Zealand companies
that Kingfish targets. Fisher Funds
is based in Takapuna, Auckland.
Board
The Manager has authority
delegated to it from the
Board to invest according to
the Management Agreement
and other written policies.
The Board of Kingfish
comprises independent
directors Alistair Ryan (Chair),
Carol Campbell, and Andy
Coupe; and non-independent
director Carmel Fisher.