KFL – August 2021 monthly update

1
A WORD FROM THE MANAGER
Market Update
In July, Kingfish’s gross performance return was down
(0.1%) and the adjusted NAV return was down (0.3%).
This compares with the local market benchmark index
return which was down (0.5%) (S&P/NZX50G).
New Zealand equities fell (0.5%) in July, underperforming
most major global equity markets (MSCI World +1.8%,
S&P 500 +2.4%, ASX 200 +1.1%).
Despite all the rhetoric about inflation pressures and rising
interest rates, the US 10 year government bond rate fell
the most sharply in a year. At the moment, the spectre of
the COVID delta variant is causing renewed lockdowns
in some countries. The resulting drag on global economic
growth is outweighing the concern around upward
pressure on inflation and interest rates for now. It is also
giving central banks some breathing space before they
start to unwind the extraordinary stimulus.
Portfolio
Auckland Airport (flat) provided subdued updated fiscal
2022 guidance. Retail income is expected to be only
$25-35 million (11-16% of 2019 levels) due to the airport
providing ongoing support for retail tenants whilst borders
remain partially closed. Auckland Airport also prepaid
$500 million in US Private Placement debt in order to
retain covenant flexibility whilst border closures persist.
Sydney Airport received a takeover bid from a consortium
of global infrastructure funds, validating the long-term value
in airports and the opportunity available once borders
reopen further.
Delegat (-9%) downgraded earnings expectations during
the month. The well publicised global shipping capacity
shortage meant its product is not getting to its offshore
customers as quickly as the market expected. In addition,
the weaker harvest than expected in 2021 will impact
volume and costs in 2022 more than we initially expected.
We think both issues will have limited impact beyond the
current financial year.
Infratil (-5%) announced that Marko Bogoievski will step
down as CEO of Morrison & Co, Infratil's manager, having
stepped down as Infratil CEO earlier this year. Marko will
be succeeded by Paul Newfield, who is Morrison & Co’s
CIO and has 13 years of experience at the company,
which we see as a positive. In addition, Marko will remain
involved as an Operating Partner with involvement with
key portfolio company boards, such as Vodafone.
Mainfreight (+7%) held its annual meeting and released
some very strong numbers for the first four months of
its 2022 fiscal year. Profit has almost doubled versus
the same period last year, plus the company already
anticipates its full year result will be “satisfactory”. This
is a positive given the company’s normally conservative
stance on guidance. For the first time since we have
been running the portfolio, we are seeing all the
key geographies (NZ, Australia, US, Europe) really
performing well at the same time. The company is taking
market share at the fastest pace in its history.
Ryman Healthcare (flat) held its annual meeting this month,
announcing record quarterly sales volumes and a new site
purchase in Victoria. Ryman has been able to increase
prices recently due to the strong housing market. It guided
to maintaining current debt levels as it grows over the next
few years, implying faster capital recycling and reduced
leverage (the ratio of debt to assets). This is positive
although we remain cautious given recent management
changes and some delays to certain developments.
Summerset (-4%) announced second quarter sales figures,
which were a record for the June quarter. The figure of
270 sales of new units plus resales was almost twice the
average of 150 over the past four years.
1
Share Price Premium to NAV (using NAV to four decimal places)
MONTHLY UPDATE
August 2021
KFL NAV
$
1. 7 6
$
2.01
Share Price
PREMIUM
1
14.3
%
as at 31 July 2021
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 31 July 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
$1.73
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
314m
MARKET CAPITALISATION
$632m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 July 2021
5
%
28
%
INDUSTRIALS
20
%
INFORMATION
TECHNOLOGY
36
%
HEALTH CARE
7
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(0.5%)+5.5%+32.4%+25.2%+19.9%
Adjusted NAV Return(0.3%)(0.1%)+12.8%+16.3%+14.5%
Portfolio Performance
Gross Performance Return(0.1%)+0.0%+14.8%+19.5%+17.3%
S&P/NZX50G Index(0.5%)(1.1%)+7.4%+12.2%+11.4%
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 31 July 2021

33
TOTAL SHAREHOLDER RETURN to 31 July 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
$
9.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2021
Mar
2005
JULY’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 July 2021
MAINFREIGHT
+7
%
SUMMERSET
-4
%
INFRATIL
-5
%
PUSHPAY
-6
%
DELEGAT
-9
%
MAINFREIGHT
21
%
INFRATIL
15
%
AUCKLAND
INTERNATIONAL
AIRPORT
15
%
FISHER & PAYKEL
HEALTHCARE
9
%
SUMMERSET
8
%

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
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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
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 David McClatchy.
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.