MLN – December 2020 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance for November was up 8.3%, while
the adjusted NAV was up 7.0%. This compared with our global
benchmark, which was up 9.7%.
November was the month of the vaccine. Three vaccines were
announced that are effective against the COVID-19. This drove
a risk-on mood
2
in global equity markets, adding fuel to the
post-US election rally. This eclipsed worries about the near-
term economic outlook.
Equity markets cheered the light at the end of the COVID-19
tunnel, with this year’s biggest losers gaining the most in
November. MSCI Europe ex-UK and FTSE All-Share indices
returned 14.2% and 12.7%, respectively as the financial and
energy sectors, which are large contributors to those indices
rallied strongly.
The year-to-date star performers, Asia ex-Japan and the US,
still made impressive monthly gains of 8.0% and 11.0%. .
Portfolio Company Developments
During the month we were rewarded by companies in what we
term our ‘old habits return’ bucket. This group of businesses
includes airplane component manufacturers Hexcel (+48%)
and Heico (18%), conference and research provider Gartner
(+27%), and hotel brand franchisor Hilton (+18%). The
latter three of these companies were added to the portfolio
during March when equity markets had fallen significantly.
Our investment thesis at the time was simple, these are
quality growth companies, with strong balance sheets whose
businesses had been decimated by COVID-19. Our thought
process was that in a return to a more normal environment
the share prices of these quality companies should perform
strongly. Concurrently, Hexcel, benefited from US regulators
clearing Boeing’s 737 Max plane to fly again after imposing a
grounding order in March 2019.
After consecutive months of being a laggard, Signature
Bank (+39%), which is now our largest holding, had a
very strong month. A substantial amount of the share price
appreciation occurred early in the month on the announcement
of COVID-19 vaccines. This dampened concerns the market
had around Signature Bank’s lending exposure to New York
real estate, particularly retail. At the same time management
provided upbeat commentary for net interest income growth.
Dollar Tree (+21%) posted a strong quarterly earnings
report. The discount retailer operates under two banners,
Dollar Tree and Family Dollar. At Dollar Tree every item is sold
for US$1. The company has been testing US$3 and US$5
items over the past year. On the quarterly earnings call the
new CEO explained the test had being going well and Dollar
Tree intended to expand the multi price point test from 100
stores to 500 stores. If Dollar Tree commits to roll out multi
price point items to all stores, these higher priced items could
have a material benefit to company sales and profit margins.
Alibaba (-14%) was our worst performer for the month
as the ecommerce and fintech industries in China face
increasing regulatory scrutiny. Firstly, the IPO of Ant Group,
of which Alibaba owns 33%, was cancelled just two days
before the proposed listing date as regulators proposed a
slate of new guidelines in areas such as consumer lending.
Later in the month, regulators announced draft antimonopoly
rules targeted at internet companies. The regulations are
aimed at driving a healthier competitive environment. Alibaba
believe they are compliant with the new regulations, and
having spoken to antitrust expert in China we do not expect
the new regulations to have a major impact on the business.
We still like the long-term growth story and Alibaba’s strong
position in the digital economy.
Additions
We added First Republic Bank (-4%) during the month.
The bank is a high quality, founder run company with a best-
in-class business model. First Republic provides services
to high net worth households in select markets. The bank
has consistently generated superior loan growth, while
maintaining extremely prudent lending standards. In addition,
by providing its customers with exceptional personalised
service, the company has built more profitable relationships
by offering other products including its wealth management
services. The company is also working to broaden its
reach to emerging professionals and younger millennial
1
Share Price Premium to NAV (using NAV to four decimal places).
2
In ‘risk-on’ situations investors have a higher risk appetite and bid up the prices of assets in the market
MONTHLY UPDATE
December 2020
MLN NAV
$
1.1 0
$
1. 3 0
Share Price
PREMIUM
1
18.6
%

as at 30 November 2020

2
SECTOR SPLIT
as at 30 November 2020
KEY DETAILS
as at 30 November 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
$0.98
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
186m
MARKET CAPITALISATION
$242m
GEARING
None (maximum permitted 20% of
gross asset value)
34
%
CONSUMER
DISCRETIONARY
10
%
FINANCIALS
17
%

HEALTH CARE

WEST
EUROPE
20
%
COMMUNICATION
SERVICES
GEOGRAPHICAL
SPLIT
as at 30 November 2020
10
%
ASIA
74
%
NORTH AMERICA
6
%
INDUSTRIALS
4
%

SOUTH AMERICA
The Marlin portfolio also holds cash.
11
%
12
%
INFORMATION
TECHNOLOGY
households, which should add to its overall growth rate.
Exits
We added Starbucks (+9%) to the portfolio in March 2020
in the depths of the COVID-19 sell-off. Our thesis was simply
that Starbucks was a great business with a reliable growth
algorithm and was oversold because of the pandemic.
Starbucks stores would ultimately reopen, they would take
share from independents and return to their growth algorithm
of c.6% pa store growth (largely China and US drive-through
stores). We have been positively surprised by the recovery with
shares up 60% since purchase. With the strong performance
we have taken the opportunity to exit Starbucks and reallocate
capital into ideas where we have higher conviction around
Ashley Gardyne
Senior Portfolio Manager
Fisher Funds Management Limited
future return potential – Signature Bank and First Republic
Bank.

3
NOVEMEBR’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
Typically the Marlin portfolio will be invested 90% or more in equities.
HEXCEL CORP
+48
%
STONECO
+39
%
SIGNATURE BANK
+39
%
TJX COMPANIES INC
+27
%
5 LARGEST PORTFOLIO POSITIONS as at 30 November 2020
SIGNATURE BANK
8
%
ALPHABET
7
%
FACEBOOK
6
%
ALIBABA
5
%
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
$
3.50
$
4.00
$
2.00
Nov
2018
$
2.50
Nov
2019
Nov
2020
TOTAL SHAREHOLDER RETURN to 30 November 2020
PERFORMANCE to 30 November 2020
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+11.4%+13.2%+47.2%+29.4%+19.9%
Adjusted NAV Return+7.0%+3.2%+20.1%+15.6%+13.0%
Portfolio Performance
Gross Performance Return +8.3%+4.3%+25.5%+19.3%+17.0%
Benchmark Index^+9.7%+6.5%+6.6%+6.4%+9.2%
^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/
GARTNER
+25
%

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
»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.