MLN – November 2020 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance for October was down 1.2%, while
the adjusted NAV was down 1.3%. This compared with our
global benchmark, which was down 1.4%.
The headlines over the month were dominated by the
pandemic and US elections. The MSCI Europe index was
down 5.4% as a “second-wave” of COVID-19 runs through
Europe. Many countries including UK, Germany and France
are implementing lockdowns or other restrictive measures
to control the virus. Conversely, China was one of the better
performing markets as economic data showed a continuing
recovery, with the economy returning to growth in Q3.
The US S&P 500 index was down 2.7%, having ended
the month with the largest weekly decline since March on
the reacceleration of daily COVID-19 cases. This drove
underperformance in areas such as discretionary retail and
airlines. The US market performance also reflected increasing
odds of a Biden election win. The prospect of fiscal stimulus
and infrastructure spend provided a boost to renewable energy
and infrastructure stocks.
Lastly, earnings season is well underway with around 60% of
S&P 500 companies having reported. 80% of these companies
beat sales estimates, with revenue declining 3% on average.
Based on share price reactions, investors largely appear to be
looking through this quarter and focussing more on Q4 and
2021 commentary from management teams.
Portfolio Company Developments
Alphabet (+10.3%) continues to deliver strong advertising
growth despite a weak economic backdrop. Group revenue
grew 14% in the third quarter, driven by strong search
advertising and YouTube growth, combined with 45% growth
in its Cloud business. Its advertising business is benefitting
from the continual shift of ad budgets from traditional media to
digital – a trend that has accelerated in 2020.
We saw this trend across the broader digital advertising
space, with Facebook, Snapchat and Pinterest also
delivering better than expected results. The US Department
of Justice also filed its long-expected antitrust lawsuit
against Google, accusing the tech giant of using
anticompetitive tactics to preserve its search engine
monopoly. The lawsuit did not have much share market
impact given it was narrowly focused on its deals to be
default search provider with mobile device manufacturers
(like Apple). There were no calls to break up Google and
YouTube or its advertising network business.
Tencent (+15.5%) and Alibaba (+3.7%) were the other
top contributors this month. In addition to strong Chinese
economic data, both companies were buoyed by the highly
anticipated Ant Group IPO.
Investor demand for Ant Group has been strong to say the
least. Chinese retail investors alone subscribed for nearly
$3 trillion of stock, 870 times the shares reserved for retail
investors and well above the $37 billion being raised in total.
Hong Kong retail investors (only 389 oversubscribed) and
institutional investors further bolstered demand. This in turn
has driven valuation expectations well above the $250b
originally being discussed.
While Alibaba is the obvious beneficiary via its 33%
shareholding, this also shone the spotlight on Tencent’s
underappreciated fintech business, which has around 40%
share of the Chinese payments market.
Mastercard (-14.5%) was the biggest drag on performance
in October after hitting all-time highs in recent months.
Mastercard’s third quarter results showed that while
ecommerce and contactless payments are benefitting parts
of its business, weak cross-border travel activity is still
materially impacting its business. Cross-border payment
fees are likely to remain under pressure until there is a widely
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
MONTHLY UPDATE
November 2020
MLN NAVWarrant Price
$
1. 0 7
$
0.25
$
1. 1 8
Share Price
PREMIUM
1
16
%

as at 31 October 2020

2
SECTOR SPLIT
as at 31 October 2020
KEY DETAILS
as at 31 October 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
$1.01
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
153m
MARKET CAPITALISATION
$181m
GEARING
None (maximum permitted 20% of
gross asset value)
38
%
CONSUMER
DISCRETIONARY
6
%
FINANCIALS
19
%

HEALTH CARE

ASIA
21
%
INFORMATION
TECHNOLOGY
GEOGRAPHICAL
SPLIT
as at 31 October 2020
10
%
WEST
EUROPE
71
%
NORTH AMERICA
5
%
INDUSTRIALS
4
%

SOUTH AMERICA
The Marlin portfolio also holds cash.
11
%
15
%
COMMUNICATION
SERVICES
available vaccine and travellers are again feeling confident –
which is unlikely to be until 2022.
Despite these near-term headwinds, the long-term outlook for
digital payment adoption has only been strengthened by the
pandemic.
As discussed, the resurgence of coronavirus and risk of further
lockdowns and restrictions hurt discretionary retail names like
TJX (-8.7%), Essilor (-8.6%) and Adidas (-7.6%).
Ashley Gardyne
Senior Portfolio Manager
Fisher Funds Management Limited

3
OCTOBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
Typically the Marlin portfolio will be invested 90% or more in equities.
TENCENT HOLDINGS
+16
%
TYLER
TECHNOLOGIES
+10
%
ALPHABET
+10
%
MASTERCARD
-10
%
5 LARGEST PORTFOLIO POSITIONS as at 31 October 2020
ALIBABA
8
%
FACEBOOK
8
%
ALPHABET
7
%
SIGNATURE BANK
6
%
TENCENT HOLDINGS
6
%
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
$
3.50
$
4.00
$
2.00
Nov
2018
$
2.50
Nov
2019
TOTAL SHAREHOLDER RETURN to 31 October 2020
PERFORMANCE to 31 October 2020
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+8.2%+13.2%+41.5%+26.3%+18.4%
Adjusted NAV Return(1.3%)+2.1%+15.7%+13.5%+12.1%
Portfolio Performance
Gross Performance Return (1.2%)+2.8%+20.0%+16.8%+15.8%
Benchmark Index^(1.4%)+1.6%(0.1%)+3.8%+7.6%
^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/
EDWARDS
LIFESCIENCES
-15
%

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
»The previous Marlin Global Limited warrants MLNWD
were exercised on 6 November 2020 and new Marlin
Global shares were allotted to those who had exercised
their warrants.
»All MLNWD warrants that were not exercised, lapsed on
6 November 2020, and all rights in regard to them have
now expired.
»Details pertaining to the exercise of MLNWD warrants
were announced to the market via the NZX in early
November 2020.
»Warrants put Marlin Global 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 Marlin Global at a fixed price on a fixed
date.
»There are now no Marlin Global warrants on issue.

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.