KFL – September 2021 monthly update

1
A WORD FROM THE MANAGER
Market Update
In August, Kingfish’s gross performance return was +6.7%
and the adjusted NAV return was +6.5%. This compares with
the local market benchmark index return which was +5.0%
(S&P/NZX50G).
New Zealand equities gained +5.0% (S&P/NZX 50) in
August, outperforming all major global equity markets (MSCI
World +2.5%, S&P 500 +3.0%, S&P/ASX 200 +2.5%).
There were several stock specific reasons for the strong gains,
with six companies driving around 80% of the performance.
Four of those companies (Ryman, Summerset, Fisher & Paykel
Healthcare and Mainfreight) are in the Kingfish portfolio as
we will discuss below. There were also notable gains from
Chorus and Z Energy which have underperformed recently but
found respite in a regulatory decision and takeover interest
respectively.
The Portfolio
Auckland Airport (-0.4%) announced its fiscal 2021 result,
which was in line with recent guidance. A highlight of the
result was the $500 million positive revaluation of Auckland
Airport's industrial investment property book, showing
Auckland Airport's ability to grow its intrinsic earnings power
relative to the pre-COVID baseline. Whilst recent lockdowns
are a setback to traffic recovery, we are encouraged by
New Zealand's rapidly accelerating vaccine roll-out which is
fundamental to wider border reopening.
Fisher & Paykel Healthcare (+5%) hosted its annual
shareholders' meeting and provided a trading update for the
current fiscal year. Sales for the first four months in its Hospital
division (-3% in constant currency terms) have held up better
than expected as COVID-19 has proved more persistent, firstly
in developing countries like India and more recently with Delta
outbreaks in various developed markets like the US. Sales of
both hardware and consumables continued to be driven by
COVID-related stocking and destocking but COVID-19 related
demand is expected to ease over the year. On a medium to
long-term view, the company still sees an uplift in penetration
of its products, particularly in hospitals that already used its
Optiflow nasal high flow therapy and now have more of its
Airvo hardware devices following COVID-19.
Mainfreight (+15%) continued to trade higher following its
likely future inclusion in a regional FTSE index. After month-
end (on 1 September) the company released a strong trading
update for the first 22 weeks of its financial year which
showed a strong acceleration in performance versus the 17
week annual meeting update. Weekly average profit before
tax increased +18% from $6.2 million (weeks 1-17) to $7.3
million (weeks 18-22). The drag from Level 4 lockdowns
in New Zealand is less than expected with a -30% fall in
domestic freight revenues and no impact to revenues in
warehousing and Air & Ocean.
Port of Tauranga (+4%) announced its fiscal 2021 result,
reporting a +15% increase in net profit. This was a strong
result, particularly given the backdrop of global and local
supply chain issues, the most obvious being Ports of Auckland
congestion due to a failing automation project. The company
earned $16 million from storage surcharges, which are used
to disincentivise storage of cargo on port (which can lead to
congestion) and recover revenue lost due to congestion. The
result illustrates the resilience and pricing power of Port of
Tauranga, despite ongoing supply chain disruption.
Pushpay (+4%) announced a material acquisition, streaming
solutions provider Resi Media, for US$150 million. Resi
appears a good fit as it services more than 70% of the
Outreach (100 largest churches) in the US which has been
Pushpay's core market. Logically it should see Pushpay able
to consolidate its position as the top technology provider for
the Faith based market. This would be similar to how it has
combined its Church Community Builder acquisition with its
donor management and giving platform to create ChurchStaq
which is proving attractive to mid-market churches.
Ryman Healthcare (+17%) increased unit prices +5% during
the month, in addition to a +5% rise earlier this year. With
units taking on average up to 7 years to turnover, these price
increases will boost earnings and cash flow for years to come.
Unit price increases also lower gearing by increasing asset
values, giving Ryman Healthcare further headroom to invest
for growth, and mitigating a concern we have had with the
business. Demand for retirement units is at record levels and
the buffer between retirement village unit prices and local
house prices remaining strong.
1
Share Price Premium to NAV (using NAV to four decimal places)
MONTHLY UPDATE
September 2021
KFL NAV
$
1. 8 7
$
2.0 6
Share Price
PREMIUM
1
10.0
%
as at 31 August 2021

2
KEY DETAILS
as at 31 August 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
$647m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 August 2021
5
%
29
%
INDUSTRIALS
19
%
INFORMATION
TECHNOLOGY
35
%
HEALTH CARE
7
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
Summerset (+17%) released first half 2021 results. Similar
to Ryman, Summerset increased unit prices recently and
sales volumes are at record highs. Summerset announced
an increase in its build rate guidance, from 600-650 units
and beds to 700-750 units and beds on the back of strong
demand and low inventory levels. Summerset's landbank
allows for a 50% lift in build rate over the next four years,
which lifts the underlying earnings profile meaningfully. New
site acquisitions in both New Zealand and Victoria and strong
market conditions mean Summerset has a strong growth
outlook ahead.
The a2 Milk Company (-3%) reported its fiscal 2021 result,
coming in towards the lower end of guidance given in mid
May. The company has now seen problematic inventory
levels in its English Label infant formula rebalance and
expects a consolidation in performance from here. For the
China Label product it expects continued sales growth in its
physical store distribution channel and in online platforms.
Management have been cautious about the outlook given
the headwind of lower births in China, particularly given
the temporary impact of COVID-19 vaccines which may
suppress the number of pregnancies in the near-term. While
the worst of the recent issues may be behind it, there are still
a range of outcomes possible for the recovery which means
we still have a small position.
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Vista (+4%) reported its first half 2021 result which saw the
company continue to exceed cash preservation targets, with
$1.6 million cash outflow per month versus initial expectations
earlier in 2021 of $3-4 million. There is still $58 million of
cash in hand. Vista reported revenue of $45 million broadly
as expected with growth in recurring revenue while absorbing
the impact of what are expected to be one-off net customer
closures in core markets and meaningful adverse exchange
rate movements. As cinemas reopen most of Vista’s more
sensitive revenue streams (such as the Movio marketing tools)
are now coming back and guidance implies $50-55 million
in the second half of 2021. The company has launched its
Vista Cloud offering and is increasingly confident it will be
taken up by both existing and prospective customers, who are
increasingly seeking new technology to create operational
efficiencies. This will be a structural growth driver helping
them take further market share and increase existing customer
recurring revenues over the next 5+ years.

33
TOTAL SHAREHOLDER RETURN to 31 August 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
AUGUST’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 August 2021
RYMAN
+17
%
SUMMERSET
+17
%
MAINFREIGHT
+15
%
DELEGAT
+7
%
FISHER & PAYKEL
HEALTHCARE
+5
%
MAINFREIGHT
21
%
INFRATIL
15
%
SUMMERSET
14
%
FISHER & PAYKEL
HEALTHCARE
9
%
AUCKLAND
INTERNATIONAL AIRPORT
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+2.5%+4.4%+30.1%+24.7%+19.5%
Adjusted NAV Return+6.5%+9.5%+17.2%+17.2%+15.6%
Portfolio Performance
Gross Performance Return+6.7%+10.1%+19.2%+20.3%+18.3%
S&P/NZX50G Index+5.0%+7.3%+10.7%+12.4%+12.3%
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 August 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 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.