MLN – August 2020 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance for July was +4.4%, while the
Adjusted NAV return for the month was +3.7%. These returns
were ahead of our global benchmark which gained +2.6%.
July saw the fourth consecutive month of positive returns for
the MSCI World index. China was one of the top performing
markets up 8.9% as emerging economies benefited from the
weaker US dollar, which declined around 4% against most
major currencies. The US was again a strong performer with
the S&P 500 index up 5.6% and the NASDAQ up 6.8%.
Markets continue to be supported by expansive monetary
and fiscal policy, combined with economic data showing a
continued rebound in the global economy. As an example,
data in the US shows that consumer spending has rebounded
strongly and is almost back to pre-pandemic levels. Offsetting
this however is the risk that a resurgence in COVID cases and
renewed restrictions could dampen the recovery.
While we do not believe we are out of the woods economically,
we are pleased with how our portfolio companies have been
navigating the pandemic. We are now halfway through the
second quarter earnings season and the results from most of
our companies have demonstrated surprising resilience.
Portfolio Company Developments
Alibaba (+16%) was our top contributor, (per our attribution
analysis), buoyed by both the strong performance of emerging
markets but also the announcement of the long-awaited IPO of
subsidiary Ant Financial. Known primarily for Alipay, one of the
leading Chinese mobile payments apps with over 900m users,
Ant Financial has expanded into many areas of digital financial
services including wealth management, lending and insurance.
With a rumoured valuation of US$200b, this listing would make
Ant Financial the most valuable fintech in the world. Alibaba
has a 33% share in the business.
StoneCo (+23%) also benefited from emerging markets
strength in addition to strong earnings results in the previous
month. We added StoneCo to the portfolio in May. It is a rapidly
growing payment service provider in Brazil that allows small
merchants to accept digital payments in-store and online. Digital
payment penetration is still low in Brazil but is increasing rapidly
due to the shift away from cash and growth in ecommerce - two
trends that have accelerated due to coronavirus. Our research
underpins our belief that StoneCo is an attractive founder-led
business with many years of growth ahead.
Amazon (+15%) continues to benefit from wider adoption
of online shopping and people working from home. This
was highlighted in Amazon’s quarterly earnings report with
North American e-commerce revenue growing 51% year-on-
year, the highest since 2011, off a much larger base. While
Amazon’s cloud computing division, AWS, grew 29% the
company’s backlog grew 65%, suggesting healthy demand
ahead. Perhaps the key takeaway for investors, for a firm that
continually reinvests earnings back into the business, was a
glimpse towards greater than 10% operating profit margins.
Facebook (+12%) showed 11% revenue growth despite a
depressed global advertising market. While global advertising
spend was hit by COVID during the quarter, high user
engagement on Facebook and Instagram during lockdown
and its attractive direct response ad formats allowed
Facebook to take significant market share. Importantly
Facebook’s results showed that growth continued to
accelerate in May and June from depressed levels in April.
Facebook’s reach has proved popular with small businesses
seeking to ramp up their ecommerce strategies and connect
with customers during lockdown. Facebook also disclosed
that its largest 100 advertisers account for just 16% of its
revenue. This shows the importance of small businesses
to Facebook, but also highlights the likely limited impact of
recent advertising boycotts by large brands.
Signature Bank (-4%) was dragged down with the broader
banking sector due to falling long-term interest rates –
despite the company reporting a strong set of financial
results in July (which showed strong deposit and asset
growth).
The other detractors from performance were largely
concentrated in the industries most exposed to a resurgence
of COVID-19 including aerospace, retail and hotels. The
challenges to these sectors are best highlighted by the recent
quarterly results from EssilorLuxottica (-2%) and Hexcel
(-18%). Essilor revenue was down 46% for Q2, falling by as
much as 70% during April due to widespread lockdown and
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
MONTHLY UPDATE
August 2020
MLN NAVWarrant Price
$
1. 0 7
$
0 .1 4
$
1. 0 8
Share Price
PREMIUM
1
4.5
%

as at 31 July 2020

2
SECTOR SPLIT
as at 31 July 2020
KEY DETAILS
as at 31 July 2020
FUND TYPE
Listed Investment Company
INVESTS IN
Growing international companies
LISTING DATE
1 October 2007
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO
SIZE
20-35 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
$1.03
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
152m
MARKET CAPITALISATION
$164m
GEARING
None (maximum permitted 20% of
gross asset value)
35
%
CONSUMER
DISCRETIONARY
5
%
FINANCIALS
19
%

HEALTH CARE
19
%
INFORMATION
TECHNOLOGY
GEOGRAPHICAL
SPLIT
as at 31 July 2020
11
%
WEST
EUROPE
77
%
NORTH AMERICA
5
%
INDUSTRIALS
12
%

ASIA
The Marlin portfolio also holds cash.
14
%
COMMUNICATION
SERVICES
retail closures. Hexcel’s revenue in its core commercial aerospace
segment fell 50% as aerospace manufacturers cut production in
the face of reduced air-travel. These businesses are among the
most severely impacted by COVID in our portfolio. While they
are currently under pressure, they are high quality businesses
and we expect their operations to rebound strongly as the global
economy reopens and travel eventually resumes.
Ashley Gardyne
Senior Portfolio Manager
Fisher Funds Management Limited

3
JULY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
Typically the Marlin portfolio will be invested 90% or more in equities.
STONECO
+23
%
ALIBABA GROUP
+16
%
AMAZON.COM
+15
%
HEXCEL CORP
+14
%
5 LARGEST PORTFOLIO POSITIONS as at 31 July 2020
FACEBOOK
7
%
ALPHABET
7
%
ALIBABA
7
%
SIGNATURE BANK
5
%
TENCENT
5
%
The remaining portfolio is made up of another 21 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
$
3.50
$
2.00
Nov
2018
$
2.50
Nov
2019
TOTAL SHAREHOLDER RETURN to 31 July 2020
PERFORMANCE to 31 July 2020
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+11.0%+23.8%+27.7%+23.2%+14.5%
Adjusted NAV Return+3.7%+10.3%+16.6%+16.3%+10.5%
Portfolio Performance
Gross Performance Return +4.4%+12.5%+20.7%+19.7%+14.3%
Benchmark Index^+2.6%+9.0%+1.2%+6.7%+6.6%
^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/
FLOOR AND DÉCOR
HOLDINGS
-18
%

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 20 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,
Andy Coupe; and Carmel
Fisher.