MLN – May 2021 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for April was 6.5%, while
the adjusted NAV was up 5.9%. This compared with our
global benchmark, S&P Large Mid Cap/S&P Small Cap
Index (50% hedged to NZD), which was up 2.6%.
Global equity markets had another strong month. The US
lead the way, returning +5.4%, while more cyclical markets
like Europe (+2.1%) and Japan (-2.8%) lagged, as value
stocks underperformed growth following a period of strong
outperformance since November.
Earnings season is underway, and first-quarter results
have generally been strong, supported by the economic
recovery. However, the stock price reaction has so far been
disappointing, with even some good results being penalised
due to high expectations. Take Apple, which reported
revenue and earnings 15% and 40% ahead of analyst
estimates respectively, but the share price still fell.
Despite a choppy earnings season for the broader market,
Marlin’s out-performance was driven by strong results by
a handful of our portfolio companies, like Alphabet and
Facebook.

Portfolio Company Developments
Ten of our portfolio companies reported in April.
Alphabet (+14.1%) and Facebook (+10.4%) both
reported phenomenal earnings results in April, driving their
stock prices meaningfully higher. As these are two of our
largest holdings, they were two of the top three drivers of
our performance in the month.
Alphabet’s profit soared in the first quarter, as the
company’s core search and advertising products continue
to benefit from the pandemic-related shifts in consumer
behaviour, which have pushed more people to seek more
goods and services online. Revenue rose 34% to $55.3
billion, boosted in part by YouTube, which saw its revenue
grow nearly 50% from a year ago. Google’s Cloud unit
grew revenue 56% year-on-year, faster than its two larger
competitors, Amazon Web Services and Microsoft Azure.
Its Cloud division also materially reduced its losses as
recent investments bear fruit, and its Cloud business gains
scale.
Facebook reported even better earnings, smashing
revenue estimates by more than 10% and earnings per
share estimates by more than 40%. Its advertising sales
grew a remarkable 46% to $25.4 billion, and by limiting
expense growth to 25% this led to operating income nearly
doubling to $11.4 billion. We still see a lot of growth ahead
for Facebook as it expands its commerce and payments
initiatives in Instagram, Facebook and WhatsApp.
Floor and Decor (+16.1%) which sells home flooring
products, was buoyed by strong residential construction
figures released mid-month, showing March housing starts
increasing 19.4% month-over-month, to the highest level in
fifteen years.
Healthcare was another high performing sector as
the strong vaccination roll-out in developed markets
drove optimism for a second half recovery in surgical
procedures. Our two medical device companies, Edwards
Lifesciences (+14.2%) and Boston Scientific (+12.8%)
both reported better than expected first quarter revenues
and we expect momentum to continue to build throughout
the year as patients get comfortable returning to hospitals
for treatment.
Adidas (-3.5%) is facing two near-term headwinds:
the ongoing consumer boycotts in China; and ongoing
lockdowns in Europe, its largest market. We consider both
these headwinds to be temporary and are still comfortable
in our thesis on longer-term industry growth and the
continued shift to direct-to-consumer driving higher profit
margins.
1
Share Price Premium to NAV (using NAV to four decimal places).
MONTHLY UPDATE
May 2021
MLN NAV
$
1. 2 5
$
1. 4 7
Share Price
PREMIUM
1
17.4
%

as at 30 April 2021

2
SECTOR SPLIT
as at 30 April 2021
KEY DETAILS
as at 30 April 2021
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
$0.94
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
189m
MARKET CAPITALISATION
$278m
GEARING
None (maximum permitted 20% of
gross asset value)
36
%
CONSUMER
DISCRETIONARY
9
%
HEALTH CARE
15
%

FINANCIALS

WEST
EUROPE
22
%
COMMUNICATION
SERVICES
GEOGRAPHICAL
SPLIT
as at 30 April 2021
11
%
ASIA
73
%
NORTH AMERICA
4
%
INDUSTRIALS
1
%

SOUTH AMERICA
The Marlin portfolio also holds cash.
11
%
14
%
INFORMATION
TECHNOLOGY
Our two Chinese stocks Alibaba (+1.9%) and Tencent
(+2.1%) marginally underperformed as technology stocks
face increased regulatory scrutiny in China, following
President Xi Jinping’s orders to regulators to crack down
on monopolies and promote fair competition. Alibaba was
recently fined US$2.8b for abusing its market position,
which equates to less than 4% of revenue. While there
is still some regulatory focus on Alibaba subsidiary, Ant
Financial, we think this fine helps remove the regulatory
overhang, which will allow investors to again focus on the
strong underlying growth in these businesses.
Ashley Gardyne
Senior Portfolio Manager
Fisher Funds Management Limited

3
APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
Typically the Marlin portfolio will be invested 90% or more in equities.
FLOOR AND DECOR
+16
%
EDWARDS
LIFESCIENCES
+14
%
ALPHABET
+14
%
AMAZON
+13
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2021
FACEBOOK
11
%
ALIBABA
7
%
ALPHABET
7
%
SIGNATURE BANK
6
%
MASTERCARD
5
%
The remaining portfolio is made up of another 19 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
$
4.50
$
2.00
Nov
2018
$
2.50
Nov
2019
Nov
2020
TOTAL SHAREHOLDER RETURN to 30 April 2021
PERFORMANCE to 30 April 2021
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+13.1%+16.9%+82.8%+34.8%+25.2%
Adjusted NAV Return+5.9%+17.0%+42.9%+20.6%+18.9%
Portfolio Performance
Gross Performance Return +6.5%+18.2%+51.5%+25.2%+23.3%
Benchmark Index^+2.6%+10.9%+40.9%+11.7%+13.4%
^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/
BOSTON SCIENTIFIC
+12
%

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 a 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
»On 19 April 2021 a new issue of warrants (MLNWE) was
announced
»The warrants will be issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Marlin shares held
»The warrants will be allotted to shareholders in May 2021
based on a 14 May 2021 Record Date and the warrants
will be listed on the NZX Main Board from 18 May 2021.
(Information pertaining to the warrants was mailed/
emailed to shareholders in early May 2021)
»The Exercise Price of each warrant is $1.28, adjusted
down for the aggregate amount per Share of any cash
dividends declared on the Shares with a record date
during the period commencing on the date of allotment
of the Warrants and ending on the last Business Day
before the final Exercise Price is announced by Marlin
»The Exercise Date for the new warrants (MLNWE) is
20 May 2022
»The final Exercise Price will be announced and an
Exercise Form sent to warrant holders in April 2022

MANAGEMENT
The Manager has authority delegated
to it from the Board to invest
according to the Management
Agreement and other written
policies. 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 Board of Marlin comprises
independent directors Alistair
Ryan (Chair), Carol Campbell,
Andy Coupe and Carmel
Fisher.