KFL – February 2020 monthly update

1
Monthly Update
February 2020
A word from the Manager
Kingfish achieved a gross performance return of +1.2% in
January, while the adjusted NAV return was +1.0%. This was
behind the local share market which returned +2.0% (S&P/
NZX50G). The underperformance was partly due to our lower
exposure to defensive sectors, which benefitted as fears
around coronavirus grew towards the end of the month and
bond rates fell reasonably sharply. Like everyone, we are
actively monitoring the progress of the current coronavirus
outbreak both with concern for the health and wellbeing of our
society, but also as a risk factor for our companies.
Portfolio Company Developments
Infratil (+7.5%) updated the market on the independent
valuation of its investment in Canberra Data Centres (‘CDC’),
which was revised significantly upwards by around $500 million
as at December versus March 2019. We continue to like Infratil
as a defensive exposure with several growth assets that have
been under-appreciated.
Auckland Airport (-1.1%) air traffic continues to be below-
trend as Chinese passenger numbers are reducing, while
key Australian and New Zealand passenger numbers are
flat. This reflects cuts in airline capacity, softer trans-Tasman
economic conditions than recent times, plus less growth in
Chinese outbound travellers. History suggests that ‘shock’
events similar to coronavirus like SARS and Swine Flu do not
negatively impact airport traffic in the long-term.
Summerset (+0.2%) announced its fourth quarter 2019
key sales metrics. New sales accelerated strongly and were
the second highest ever for the group and the highest in
three years. The key factor was a more buoyant residential
property market translating to more confidence for
Aucklanders to list their property and move into Summerset
villages. We continue to like the Summerset story in the
medium-term, although recently trimmed the position after
very strong performance (up around 60% from mid 2019
lows). This follows our decision to increase the position
size multiple times during 2019 when we thought it offered
attractive value and started seeing ‘green shoots’ in the
Auckland housing market.
Portfolio changes
In addition to trimming the position in Summerset, we
reduced our position in Meridian following the strong
recovery in its share price with the future of the Tiwai Point
aluminium smelter yet to be resolved. We also deployed
additional funds into Infratil.
1
Share Price (Premium) / Discount to NAV (using NAV to four decimal places)
KFL NAV
$
1.67
SHARE PRICE
$
1.70
(PREMIUM)/
DISCOUNT
1
(1.8
%
)
as at 31 January 2020
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
Key Details
as at 31 January 2020
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
$1.40
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
246m
MARKET
CAPITALISATION
$419m
GEARING
None (maximum permitted 20%
of gross asset value)
Sector Split
as at 31 January 2020
7
%
26
%
INDUSTRIALS
18
%

UTILITIES
INFORMATION
TECHNOLOGY
29
%
HEALTH
CARE
13
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+6.3%+16.4%+41.6%+19.1%+14.2%
Adjusted NAV Return+1.0%+11.7%+31.6%+17.8%+14.5%
Portfolio Performance
Gross Performance Return+1.2%+13.3%+37.6%+21.2%+17.5%
S&P/NZX50G Index+2.0%+8.6%+30.4%+18.5%+15.3%
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 31 January 2020

33
Total Shareholder Return
to 31 January 2020
Mar
2004
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
$
3.00
$
4.00
$
5.00
$
6.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2005
January’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 31 January 2020
PUSHPAY HOLDINGS
+12
%
INFRATIL
+8
%
MERIDIAN
+7
%
FISHER & PAYKEL
HEALTHCARE
+5
%
DELEGAT GROUP
-5%
THE A2 MILK
COMPANY
15
%
FISHER & PAYKEL
HEALTHCARE
14
%
INFRATIL
13
%
MAINFREIGHT
10
%
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 its shares on market
»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, however
Kingfish issued an NZX announcement on 5 February
regarding a new warrant offer (KFLWF), which is
scheduled for allotment to shareholders in early
March 2020. Information regarding the new warrant
offer will be mailed/emailed to shareholders in mid-
February 2020.
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.