KFL – December 2020 monthly update

1
A WORD FROM THE MANAGER
In November Kingfish returned gross performance of +6.7%
and an Adjusted NAV return of +6.4%. This compared with
our local market which was up 5.7% (S&P/NZX50G).
Global COVID new cases plateaued (after spiking the
month before) and there were some encouraging COVID
vaccine efficacy trial results. This caused significant
outperformance by companies that had been hardest hit
by COVID. On the flipside, we saw companies that had
outperformed during COVID lag. For example, the US
airline sector was up +26% for the month while US large
cap technology shares were only up +4-5% for the month.
The environment was already conducive enough for global
equities but this was supercharged by the fact global bond
yields stayed largely flat for the month.
NZ outperformed in October due to its defensive qualities
and subsequently underperformed in the sharp global stock
market rally in November.
The Portfolio
a2 Milk (+1%) maintained its first half 2021 and full year
2021 guidance at its AGM. During the Singles Day festival,
a2 grew volumes +24% year on year which was in line with
expectations. Management have pointed to "green shoots"
of a recovery in the daigou sales channel, however we have
reduced our position size as the recovery in the daigou
channel is developing slower than we had anticipated.
Auckland Airport (+9%) was boosted by the news of
three successful vaccine trials (Pfizer/BioNTech, Moderna
and AstraZeneca/Oxford). All had 90%+ efficacy under
certain dosage regimens. This increases the probability of
a traffic recovery that is earlier and stronger than previous
expectations.
Fisher & Paykel Healthcare (+3%) reported a strong first
half 2021 result. The assumptions underpinning guidance
predictably proved to be too conservative given the
prevalence of second waves of COVID in Europe, the
US, and Asia. However, given the stock was a COVID
beneficiary, it has been sold off in conjunction with news of
multiple COVID vaccines emerging. We have been focused
on the key medium-term growth drivers. The installed base
of Airvo devices continues to grow strongly (positive) and
is being well utilised (positive), plus further clinical studies
have reinforced the efficacy of the company’s nasal high
flow therapies (positive). This suggests the company will see
a long tail of consumables sales and continued growth in
penetration of its addressable market.
Mainfreight (+16%) reported its first half 2021 result, which
layered some more detail onto what was pre-announced at
October's investor day. Momentum has continued and the
company has increased confidence this will continue heading
into the important Christmas period. Volumes look strong
with a lot of freight in the system, including in New Zealand.
For example, despite the NZ team working hard they are
struggling to clear all freight off the cross dock by week end,
which is highly unusual. Management pointed to signs of
improved momentum in the US and European businesses.
Mainfreight has performed very well through COVID and still
has significant momentum.
Pushpay (-22%) announced its first half 2021 result and also
hosted a mini virtual investor event in lieu of a full investor
day in the US. As expected, the result was strong and full
year EBITDA guidance was upgraded from US$50-54m to
US$54-58m. The strong result featured strong cost control
and higher gross margins in addition to a COVID-related
uplift in revenues. However, revenue growth was impacted
by fewer new customers net of losses. The immediate outlook
for customer growth is more positive following the launch of
the company’s new combined ChurchStaq product. The stock
was also caught up in the acute global rotation out of COVID
winners into COVID losers.
Ryman (+7%) reported first half 2021 earnings which were
impacted by lockdowns in Victoria and Auckland. Underlying
net profit was -14% vs last year. Gearing increased to 46%
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places)
MONTHLY UPDATE
December 2020
KFL NAV
$
1. 8 7
$
2.0 0
Share Price
PREMIUM
1
WARRANT PRICE
10.8
%$
0.3 1
as at 30 November 2020

2
KEY DETAILS
as at 30 November 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
10-25 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
$1.30
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
252m
MARKET CAPITALISATION
$505m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 November 2020
5
%
29
%
INDUSTRIALS
17
%

UTILITIES
INFORMATION
TECHNOLOGY
31
%
HEALTH CARE
15
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
from 42%. Whilst gearing is high, Ryman is the sector leader
with a high-quality offering and strong sales track record. The
removal of lockdown restrictions in Victoria should boost sales
for Ryman, similar to the experience in New Zealand.
Summerset (+3%) announced the retirement of CEO Julian
Cook, to be replaced by current CFO and Deputy CEO Scott
Scoular. Julian had been CEO since 2014, the same year
Scott joined as CFO. This transition is well-planned (Scott
was appointed Deputy CEO in 2018) and has parallels with
Ryman's Gordon McLeod promotion from Deputy CEO to
CEO. The leadership transition represents sensible long-term
planning. Julian has done an excellent job. We think Scott will
perform well in the role.

33
TOTAL SHAREHOLDER RETURN to 30 November 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
$
7.00
$
8.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2005
NOVEMBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
Typically the Kingfish portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 9 stocks and cash.
5 LARGEST PORTFOLIO POSITIONS as at 30 November 2020
MERIDIAN ENERGY
+21
%
VISTA GROUP
+16
%
MAINFREIGHT
+16
%
INFRATIL
+11
%
PUSHPAY HOLDINGS
-22
%
MAINFREIGHT
18
%
FISHER & PAYKEL
HEALTHCARE
15
%
INFRATIL
13
%
THE A2 MILK
COMPANY
12
%
SUMMERSET
8
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+13.3%+18.5%+42.6%+27.7%+21.2%
Adjusted NAV Return+6.4%+7.7%+23.5%+19.6%+17.7%
Portfolio Performance
Gross Performance Return+6.7%+8.2%+26.6%+22.7%+20.8%
S&P/NZX50G Index+5.7%+7.0%+12.8%+16.0%+15.9%
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 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 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 2020

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 10 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
MANAGEMENT
Kingfish’s portfolio is managed
by Fisher Funds Management
Limited. Sam Dickie (Senior Portfolio
Manager), Matt Peek (Senior
Investment Analyst), and Michael
Bacon (Senior Investment Analyst)
have prime responsibility for
managing the Kingfish portfolio with
the assistance of Luke O’Donovan
(Quantitative Analyst). Together they
have around 50 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,
Andy Coupe and Carmel
Fisher.
Warrants
»On 5 February 2020 a new issue of warrants
(KFLWF) was announced
»The warrants were issued at no cost to eligible
shareholders and in the ratio of one warrant for every
four Kingfish shares held
»The warrants were allotted to shareholders on 9
March 2020 and the warrants were listed on the
NZX Main Board from 10 March 2020. (Information
pertaining to the warrants was mailed/emailed to
shareholders in February 2020)
»The Exercise Price of each warrant is $1.64, to be
adjusted down for dividends declared during the
period up to the announcement of the Exercise Price.
(Dividends totaling 13.01 cents per share have now
been declared and there are no more dividends
to be declared in the remaining period up to the
announcement of the 12 March 2021 exercise price).
»The Exercise Date for the new warrants (KFLWF) is
12 March 2021
»The final Exercise Price will be announced and an
Exercise Form will be sent to warrant holders in late
January 2021