MLN – May 2020 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance for April was +12.6%, while the
Adjusted NAV return for the month was 11.3%. These returns
were ahead of our global benchmark which gained 9.3%.
Equity markets bounced back strongly following the declines in
February and March. The US markets led the bounce with the
S&P up 12.8% - its best month since 1987 and a recovery of
nearly 60% of the prior decline. Global markets were also up,
but slightly more subdued with both MSCI Europe and MSCI
China up 6.3%.
While COVID-19 continues to spread globally, there was some
positive news flow during the month. Most countries seem
to be successfully bending the curve on daily new infection
rates, with many planning to begin gradually reopening their
economies. A clinical study for anti-viral drug remdesivir
showed some promising results in fighting the virus. Lastly,
there was unprecedented fiscal and monetary stimulus. The
US government passed a further $425 billion spending bill on
top of the $2 trillion bill passed at the end of March. This new
bill provides further support for employees, small businesses,
and investment in the healthcare system. Central banks are
also playing their part. The Federal Reserve recently announced
a $600b business-lending program, the latest in a range of
initiatives to support the economy and financial markets.
Despite the strong market returns and positive news, economic
data such as GDP growth, unemployment, and consumer
spending continue to trend down due to the global economic
shutdown. For now, the markets seem to be largely looking
beyond these lagging indicators, however, there is still significant
uncertainty as to what the path to recovery looks like as the world
emerges from the economic shutdown and what that means for
equity markets. We continue to closely monitor global events.
This was another busy month for the team as we focus on
finding new investment ideas and as another reporting season
gets underway.
Portfolio Company Developments
Earnings season resumed this month, with 11 of our
companies reporting.
Our top performer was Signature Bank (+33%), having been
a drag on our performance in recent months, falling with most
banks on concerns that plunging interest rates would crimp
bank profits. Signature Bank’s first quarter results showed
that it is weathering the storm better than most and it was
the top performer in the portfolio for the month. Their results
showed three key positives: (1) that the bank’s credit quality
and safe-haven status resulted in record deposit inflows, (2)
that its exposure to coronavirus impacted businesses was low
(resulting in limited loan loss provisions), and (3) that due to
the nature of its deposit base its net interest margins actually
expanded during the quarter, while most banks are seeing
margin contraction.
Our two largest portfolio holdings, Alphabet (+16%) and
Facebook (+23%) both reported strong financial results in
April and contributed strongly to our performance. YouTube,
Google, Facebook, and Instagram have all seen a material
jump in engagement in recent months as many had expected,
but their advertising businesses also proved more resilient
than many had expected. Users across Facebook’s various
platforms (Facebook, Instagram, Messenger and WhatsApp)
jumped 11% and now total almost 3 billion. While advertising
budgets are being cut globally, advertisers get more bang
for buck with direct response advertisements on Facebook,
Google and YouTube – which is helping these digital
advertising businesses take market share from traditional
media. Despite the weak economic backdrop, both Facebook
and Google are likely to report moderate revenue growth this
year and strong profitability. More importantly, rather than
laying off staff and taking a defensive stance in this downturn,
both businesses continue to hire more staff and rapidly
develop new products for users. Alphabet also made use of its
weaker share price in March by ramping up its share buyback
activity, at a time when many businesses are cancelling their
buybacks and dividends.
Hexcel (-7%) was again our worst performer given the
ongoing concerns around the health of the airline industry.
Hexcel is the leading supplier of composite parts for
aerospace manufacturers. With air-travel grinding to a halt
and airlines struggling financially – orders for new planes are
being deferred or even cancelled. In response – Airbus and
Boeing have cut aircraft production rates by up to half resulting
in lower demand for Hexcel products. We still see long-term
drivers for both increased air travel and higher composite
content, but recognise it will take a few years for travel, and
1
Share Price Discount to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
MONTHLY UPDATE
May 2020
MLN NAVWarrant Price
$
0.99
$
0.07
$
0.90
Share Price
DISCOUNT
1
6.9
%

as at 30 April 2020

2
SECTOR SPLIT
as at 30 April 2020
KEY DETAILS
as at 30 April 2020
FUND TYPE
Listed Investment Company
INVESTS IN
Growing international companies
LISTING DATE
1 October 2007
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO
SIZE
25-35 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 + 5%
PERFORMANCE FEE
10% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$0.89
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
151m
MARKET CAPITALISATION
$136m
GEARING
None (maximum permitted 20% of
gross asset value)
26
%
CONSUMER
DISCRETIONARY
11
%
FINANCIALS
17
%

HEALTH CARE
24
%
INFORMATION
TECHNOLOGY
GEOGRAPHICAL
SPLIT
as at 30 April 2020
11
%
WEST
EUROPE
78
%
NORTH AMERICA
3
%
INDUSTRIALS
10
%

ASIA
The Marlin portfolio also holds cash.
16
%
COMMUNICATION
SERVICES
therefore new plane demand to get back to prior levels. In the
meantime, Hexcel is carefully managing its cost base to reflect
lower demand and still expects growth in its defence and wind
businesses. We think the company will be in a strong position
when growth does eventually return to the aerospace industry.
Portfolio changes
We have used the recent weakness to find quality companies
that we think are being undervalued, and added three new
names to the portfolio in April - Hilton the global hotel
franchise, HEICO a leading manufacturer of replacement
parts for aerospace and defence, and Floor and Décor
a fast-growing flooring retailer. We have been following all
three companies for some time. These are quality businesses
Ashley Gardyne
Senior Portfolio Manager
Fisher Funds Management Limited
with long-term structural growth drivers and gaining share in
their respective industries. We felt the market was focussing
too much on the near-term challenges from lower travel and
discretionary spending, which allowed us to acquire these
quality names at what we consider attractive valuations.

3
APRIL’S BIGGEST MOVERS in local currency terms
Typically the Marlin portfolio will be invested 90% or more in equities.
SIGNATURE BANK
+33
%
PAYPAL HOLDINGS
+28
%
AMAZON
+27
%
DESCARTES
SYSTEMS
+23
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2020
ALPHABET
8
%
FACEBOOK
8
%
PAYPAL HOLDINGS
6
%
SIGNATURE BANK
6
%
MASTERCARD
5
%
The remaining portfolio is made up of another 20 stocks and cash.
Nov
2007
Nov
2008
Nov
2009
Nov
2010
Nov
2011
Nov
2012
Nov
2014
Nov
2013
Share Price/Total Shareholder Return
Share PriceTotal Shareholder Return
Nov
2015
$
1.00
$
0.50
$
0.00
$
1.50
Nov
2016
Nov
2017
$
3.00
$
2.00
Nov
2018
$
2.50
Nov
2019
TOTAL SHAREHOLDER RETURN to 30 April 2020
PERFORMANCE to 30 April 2020
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+12.0%(14.4%)+13.9%+17.0%+11.7%
Adjusted NAV Return+11.3%(2.6%)+8.9%+13.0%+11.2%
Portfolio Performance
Gross Performance Return +12.6%(2.7%)+10.9%+16.1%+14.8%
Benchmark Index^+9.3%(13.1%)(6.8%)+3.6%+7.8%
^Benchmark index: World Small Cap Gross Index until 30 September 2015 & S&P Large Mid Cap/S&P Small Cap Index (50% hedged to NZD) from 1 October 2015
Non-GAAP Financial Information
Marlin 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 and currency hedging before expenses, fees and tax, and
»total shareholder return – the return combines the share price performance, the warrant price performance, the net value of converting any warrants into shares, and the dividends paid to shareholders. It
assumes all dividends are reinvested in the company’s dividend reinvestment plan, and that shareholders exercise their warrants, (if they were in the money) at warrant expiry date.
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 Marlin Non-GAAP Financial Information Policy. A copy of the policy is available at http://marlin.co.nz/about-marlin/marlin-policies/
FACEBOOK
+21
%

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 Marlin Global 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 Marlin Global Limited or its portfolio companies, please note that fund
performance can and will vary and that future results have no correlation with results historically achieved.
Marlin Global Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 484 0365 | Fax: +64 9 489 7139
Email: enquire@marlin.co.nz | www.marlin.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
MARLIN GLOBAL
Marlin 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 25 and 35 quality growing
international companies (excluding
New Zealand and Australia) through
a single, professionally managed
investment. The aim of Marlin
is to offer investors competitive
returns through capital growth and
dividends.
CAPITAL MANAGEMENT STRATEGIES
Regular Dividends
»Quarterly distribution policy introduced in August
2010
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Marlin 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
»Marlin 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
»Marlin 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
»On 17 October 2019, a new issue of warrants (MLNWD)
was announced
»The warrants were issued at no cost to eligible
shareholders and in the ratio of one warrant for every four
Marlin shares held
»Exercise Price = $0.94 per warrant, to be adjusted
down for dividends declared during the period up to the
Exercise Date
»Exercise Date = 6 November 2020
»The final Exercise Price will be announced and an
Exercise Form will be sent to warrant holders in
September 2020

MANAGEMENT
Marlin’s portfolio is managed
by Fisher Funds Management
Limited. Ashley Gardyne (Senior
Portfolio Manager), Chris
Waters and Harry Smith (Senior
Investment Analysts) have prime
responsibility for managing
the Marlin portfolio. Together
they have significant combined
experience and are very capable
of researching and investing in
the quality global companies that
Marlin 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 Marlin comprises
independent directors Alistair
Ryan (Chair), Carol Campbell,
and Andy Coupe; and non-
independent director Carmel
Fisher.