KFL – February 2021 monthly update

1
A WORD FROM THE MANAGER
In January Kingfish returned a gross performance loss of
(1.1%) and an Adjusted NAV return loss of (1.2%). This
compared with our local market which was up 0.3% (S&P/
NZX50G).
Market Update
Global equities fell around 5% late in the month from all-
time highs. The backdrop of extremely accommodative
global central banks and governments remains supportive
for equities. However, it was interrupted in January by a
spectacular retail investor frenzy in certain shares in the US,
which was well covered by the media. Retail investor buying
en-masse pushed up a collection of heavily short-sold stocks
including GameStop (“squeezing the shorts”). This led to a
big unwind of positions whereby hedge funds were forced
into covering their short positions (buying back shares) while
selling high quality long positions to fund this. This selling
of high-quality long positions, which included many index
heavyweights, in part caused markets to take a breather. New
Zealand shares were only slightly impacted by these global
developments.
The Portfolio
Auckland Airport (-2%) was impacted by new community
cases of COVID-19 in Auckland and parts of Australia, which
delayed the timing of a possible fully open Trans-Tasman travel
bubble.
Fisher & Paykel Healthcare (+5%) provided a December
quarter update which highlighted that sales accelerated
(again) in the December quarter, as COVID-19 infections
surged in many regions globally. Hospitals reacted by
increasing their hardware and consumables to treat
COVID-19 patients. We remain positive on the long-term
permanent acceleration of adoption of F&P's products and
installed hardware base.
Freightways (+9%) continued to trade higher in the wake of
its solid quarterly update. The company has benefited from a
step up in ecommerce on volumes in its core network courier
business plus poor performance from its competitors through
COVID-19.
Infratil (-1%) reported a 55% increase in Canberra Data
Centres’ independent valuation (translating to around $1
per Infratil share). This sharp increase reflects accelerated
demand for secure data centre services.
Rio Tinto gave notice to Meridian that it has decided to
accept Meridian’s new power price package for the Tiwai
Point aluminium smelter, effective immediately through to
December 2024. This removes the risk of a 'hard exit' in
August 2021 which could have led to spilled hydro water
and low electricity prices in the short-term. However, the new
terms include a lower electricity price which will result in
lower earnings for Meridian and, to a lesser degree, Contact
Energy. The outcome avoids the worst case scenario for
the electricity sector and buys the companies time to build
replacement demand for 2025 and beyond. In the meantime
wholesale electricity futures prices remain elevated given
there is a shortage of gas and new generation projects are
yet to come online. Share prices in the sector have been
volatile given renewable energy exchange traded fund (ETF)
flows and limited liquidity in the market over the holiday
period (Meridian -4%, Contact -8%).
Summerset (-3%) reported record fourth quarter unit sales,
up +32% quarter-on-quarter and +20% compared to the
prior twelve month total. We have written before about
how Summerset went above and beyond to protect their
vulnerable elderly residents during COVID-19. Potential
new residents' children saw their parents as being more
vulnerable than expected during COVID-19 and have
sought out providers "good enough for mum". This, plus the
backdrop of a strong housing market, has continued to drive
strong sales momentum.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places)
MONTHLY UPDATE
February 2021
KFL NAV
$
1. 8 8
$
2.0 4
Share Price
PREMIUM
1
WARRANT PRICE
13.8
%$
0.4 1
as at 31 January 2021

2
KEY DETAILS
as at 31 January 2021
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
$1.27
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
254m
MARKET CAPITALISATION
$518m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 January 2021
5
%
31
%
INDUSTRIALS
17
%
INFORMATION
TECHNOLOGY
32
%
HEALTH CARE
12
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Vista (-11%) underperformed as the widespread
reacceleration of COVID-19 and associated lockdowns in
many regions pushes out the reopening of the global cinema
industry. Around 55% of global cinema sites are currently
open, which is less than at the end of September when around
75% of sites were open. However, the current rollout of
vaccines provides some comfort that the industry will recover
later in the year. In addition, US cinema exhibitors have
rallied including AMC which benefited from the US retail
short squeeze and has now raised over US$900m in capital
to support its survival. Vista has around $50m in cash net of
debt and has reduced its cost base, so it is well positioned to
return to profitability as the industry reopens.

UTILITIES

33
TOTAL SHAREHOLDER RETURN to 31 January 2021
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
JANUARY’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 31 January 2021
FREIGHTWAYS
+9
%
FISHER & PAYKEL
HEALTHCARE
+5
%
CONTACT ENERGY
-8
%
PUSHPAY HOLDINGS
-9
%
VISTA GROUP
-11
%
MAINFREIGHT
20
%
FISHER & PAYKEL
HEALTHCARE
16
%
SUMMERSET
15
%
INFRATIL
9
%
THE A2 MILK COMPANY
8
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.4%+18.8%+36.1%+28.4%+22.8%
Adjusted NAV Return(1.2%)+8.7%+21.9%+19.2%+17.9%
Portfolio Performance
Gross Performance Return(1.1%)+9.3%+24.5%+22.2%+21.1%
S&P/NZX50G Index+0.3%+8.6%+12.0%+15.8%+16.3%
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 31 January 2021

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 and Michael
Bacon (Senior Investment Analysts)
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 final Exercise Price of each warrant is $1.51
»The Exercise Date for the new warrants (KFLWF) is
12 March 2021