KFL – June 2021 monthly update

1
A WORD FROM THE MANAGER
Market Update
In May, Kingfish’s gross performance return was down
(3.0%) and the adjusted NAV return was down (2.8%).
This compares with the local market benchmark index
return which was down (3.2%) (S&P/NZX50G).
The Portfolio
a2 Milk (-23%) downgraded revenue and earnings
expectations again, off the back of lower June quarter
sales, as it took greater measures to address excess
inventory levels. These measures included writing off and
swapping old for new inventories and reducing sell-in
to its distributors (hence lower sales). It was particularly
disappointing to see the company had made further
missteps in the core competency of inventory management
in multiple channels. There are now some excess
inventories in the offline mother and baby store channel,
which had not experienced problems previously. All
evidence points to a less resilient business with a narrower
moat than we previously thought, despite ongoing signs the
underlying brand health is intact. This means we have a
much smaller position than previously.
Auckland Airport’s (-4%) CEO Adrian Littlewood
announced his intention to step down after almost nine
years in the role. While we don’t like to see experienced
management leave, our investment thesis is unchanged and
we are confident a high calibre replacement will be found.
Contact Energy (+5%) hosted an investor day and a tour
of its Tauhara geothermal site, which is ahead of its
construction schedule. Overall the day provided more
comfort that Contact is executing well and has a sound
four plus year growth plan based around its geothermal
development pipeline, its retail business, and its innovative
approach to stimulating and managing electricity demand.
Fisher & Paykel Healthcare (-17%) delivered its full year
financial result, which was below expectations, with a
slowing of sales as COVID receded in the US and Europe.
The company's outlook "observations" revealed that there
is a lot of uncertainty around the near-term. However,
management remains unequivocal that the penetration of
nasal high flow therapy has been pulled forward many
years, with a large body of new clinical evidence, new
research and published guidelines, and practitioners
seeing the benefits of the treatment first hand.
Infratil (+7%) reported its full year result largely in line with
expectations. In particular, Canberra Data Centres (CDC)
is building capacity to support customer growth which is
exceeding expectations.
Meridian (-2%) hosted an investor day and site tour of
its Harapaki wind farm. The key takeaway was that
replacement demand for the Tiwai aluminium smelter for
2025 and beyond is well progressed, including data
centre and hydrogen fuel manufacturing options.
Mainfreight (+5%) delivered a strong result, although
we had been expecting this given peer results and
commentary about buoyant trading conditions. Second half
sales and profit growth accelerated strongly in Europe and
the US which were the standouts. Australia also delivered
a very strong result which was a continuation of its first half
momentum. New Zealand continues to deliver solid growth
despite the market leading position. Asia delivered the
strongest growth rates although it is the smallest business
by a long way so this does not add much to the overall
business result. The company is continuing to "fatten" its
network, including driving higher line haul utilisation and
opening new warehouses which helps win new customers.
Momentum has continued into the new year.
Pushpay (-7%) delivered its annual result in line with
expectations. Positively, customer additions accelerated
in the second half as its integrated ChurchStaq church
management system continued to gain traction. The
company guided for further growth in the new year while
simultaneously increasing investment into its Catholic
product, which will extend the company’s growth runway.
1
Share Price Premium to NAV (using NAV to four decimal places)
MONTHLY UPDATE
June 2021
KFL NAV
$
1. 7 4
$
2.01
Share Price
PREMIUM
1
15.2
%
as at 31 May 2021

2
KEY DETAILS
as at 31 May 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
$1.76
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
312m
MARKET CAPITALISATION
$627m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 May 2021
5
%
28
%
INDUSTRIALS
21
%
INFORMATION
TECHNOLOGY
33
%
HEALTH CARE
7
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
Ryman Healthcare (-8%) reported its annual results which
were slightly below expectations, although they noted that
recent sales levels were their best ever. Experienced CEO
Gordon MacLeod announced his resignation which was
disappointing given his time at the helm and the fact there
is no clear internal successor.
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

33
TOTAL SHAREHOLDER RETURN to 31 May 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
2021
Mar
2005
MAY’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 May 2021
INFRATIL
+7
%
RYMAN HEALTHCARE
-8
%
VISTA
-11
%
FISHER & PAYKEL
HEALTHCARE
-17
%
A2 MILK
-23
%
MAINFREIGHT
20
%
FISHER & PAYKEL
HEALTHCARE
15
%
SUMMERSET
15
%
INFRATIL
8
%
AUCKLAND
INTERNATIONAL AIRPORT
7
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+3.6%+9.7%+41.2%+26.4%+18.9%
Adjusted NAV Return(2.8%)+1.1%+21.1%+16.9%+14.4%
Portfolio Performance
Gross Performance Return(3.0%)+1.5%+23.9%+20.1%+17.2%
S&P/NZX50G Index(3.2%)+0.8%+13.2%+12.5%+11.8%
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 May 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 a 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 June 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
MANAGEMENT
The Manager has authority
delegated to it from the Board to
invest according to the Management
Agreement and other written policies.
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 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.