KFL – March 2021 monthly update

1
A WORD FROM THE MANAGER
In February, Kingfish’s gross performance return was down
(3.7%) and the adjusted NAV return was down (3.8%). This
compares with the local market benchmark index return which
was down (6.9%) (S&P/NZX50G).
Global equities eked out a small gain of +1%. The best
performers were economic cyclicals and “reopening plays” that
will benefit most from falling COVID infection rates and the roll
out of vaccines. The significant fiscal and monetary stimulus
that has been injected into global economies is creating much
discussion about the possibility of higher inflation. This sent
interest rates sharply higher during the month. Against this
backdrop interest rate sensitive sectors underperformed. It isn’t
surprising to see the New Zealand equity market underperform
in this environment given the large weightings of property and
utilities in the benchmark index.
The Portfolio
a2 Milk (-16%) reported its first half result in line with
expectations but reduced its revenue and profit guidance
for the full year. The company pointed to persistently high
inventory levels in some areas that are taking longer to clear
than anticipated. The company is now reducing its sales
to allow these to reduce to more normal levels rather than
compounding the problem which is weighing on results.
Auckland Airport (+1%) reported its first half result. The
company has significantly reduced capital investment plans
in line with the immediate outlook for lower international
passenger numbers. It is working on a trigger-based plan to
align spending with the traffic recovery profile, including the
eventual resumption of trans-Tasman travel.
Contact Energy (-16%) raised $400 million primarily to
develop its Tauhara geothermal field. The announcement
confirmed the strong economics of the renewable electricity
project. Contact shares have fallen despite this news, due
to what we think are non-fundamental factors (relating to
possible index changes) so this presented an attractive buying
opportunity.
Delegat (-1%) announced a very strong first half result and
increased its full year net operating profit guidance to $67
million. The good result follows strong sales in off-premise
outlets in the US and UK, as people drink wine at home
rather than at restaurants and bars given COVID restrictions.
Freightways (-4%) delivered a strong first half fiscal 2021
result. The courier business benefited from more businesses
trying to reach customers via e-commerce. This assisted its
strategy of increasing the profitability of residential deliveries.
Freightways also took market share as it has maintained
better service levels than competitors during COVID. Its Big
Chill acquisition has performed well, with strong chilled
transport volumes and its first chilled logistics warehouse
filling faster than expected.
Infratil (+2%) held an investor day during the month. It
continues to target further investment in renewable energy,
data and connectivity, and healthcare. Important portfolio
holdings Vodafone and CDC are progressing well against
their business plans. Vodafone is guiding to +10% growth in
2022, boosted by cost efficiencies.
Port of Tauranga (+1%) reported its first half result. It guided
to +9% growth in full year profit despite ongoing significant
port congestion. The congestion is due to global COVID-
related supply chain disruptions and problems caused by
Ports of Auckland's automation project. Increased storage
revenue helped offset the volume and productivity losses from
these issues which underlines the port’s quality and resilience.
Summerset (+6%) reported its full year result. Momentum
in the business remains strong with its build rate expected
to increase to over 500 units in 2021 (from around 350 in
2020). The company will buy up to three sites in Victoria this
year, which will support growing a meaningful sized business
there.
Global cinema software business Vista (+14%) performed
strongly during the month to claw back last month’s decline
and then some. Sentiment is changing around entertainment
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places)
MONTHLY UPDATE
March 2021
KFL NAV
$
1. 8 1
$
1.89
Share Price
PREMIUM
1
WARRANT PRICE
8.1
%$
0.2 7
as at 28 February 2021

2
KEY DETAILS
as at 28 February 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
$480m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 28 February 2021
5
%
30
%
INDUSTRIALS
19
%
INFORMATION
TECHNOLOGY
33
%
HEALTH CARE
10
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
businesses with COVID infection rates falling in many
countries and the vaccine rollout gaining some traction.
Cinemas in New York, the second largest moviegoing state in
the US, have been closed for almost a year but are beginning
to re-open from March. Vista has done a commendable job
of reducing costs and preserving cash while looking after its
customers. Several cinema markets around the world have
shown people are still keen to go to the movies, including
China setting record box office takings around Chinese
New Year. Vista is well positioned to return to profitability as
cinemas around the world re-open.

UTILITIES

33
TOTAL SHAREHOLDER RETURN to 28 February 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
FEBRUARY’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 28 February 2021
VISTA GROUP
+14
%
FISHER & PAYKEL
HEALTHCARE
-16
%
A2 MILK
-16
%
CONTACT ENERGY
-16
%
MERIDIAN ENERGY
-20
%
MAINFREIGHT
20
%
FISHER & PAYKEL
HEALTHCARE
16
%
SUMMERSET
14
%
INFRATIL
10
%
AUCKLAND
INTERNATIONAL AIRPORT
7
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(8.5%)(4.1%)+31.5%+24.7%+19.5%
Adjusted NAV Return(3.8%)(1.7%)+21.6%+18.2%+17.0%
Portfolio Performance
Gross Performance Return(3.7%)(1.3%)+24.6%+21.2%+20.1%
S&P/NZX50G Index(6.9%)(4.2%)+8.6%+13.4%+14.4%
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 28 February 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
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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
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.
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
Warrants
»Warrants put Kingfish 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 Kingfish at a fixed price on a
fixed date.
»There are currently no Kingfish warrants on issue.