KFL – November 2021 monthly update

1
A WORD FROM THE MANAGER
Market Update
In October, Kingfish’s gross performance return was down
-1.8% and the adjusted NAV return was also -1.8%. This
compares with the local market benchmark index return
which was down -1.3% S&P/NZX50G).
New Zealand equities fell -1.3% (S&P/NZX 50) in
October, underperforming major global equity markets
(MSCI World +5.6%, S&P 500 +7.0%, S&P/ASX 200
-0.1%). New Zealand interest rates moved sharply higher
during the month. Our stock market is generally comprised
of more defensive and interest rate sensitive companies. It
has fewer cyclical stocks and re-opening plays that benefit
as global growth and interest rates are rising.
The Portfolio
a2 Milk (+2%) hosted its Investor Day during the month.
We continue to be impressed by its current CEO, David
Bortolussi, and his expanded management team. They are
gradually developing a track record of delivering on their
targets as they have stabilised performance in the business
and enabled a return to growth. David has been incredibly
transparent with investors, providing a high level of detail
in outlining the company's position and strategy. The team
have now addressed the key inventory management issues
that had impacted the company over the last 12 or so
months. The a2 brand remains intact and is now positioned
to recover some of the lost sales in its English Label infant
formula business and continue to take share with its China
Label range. The management team thinks it can grow
sales at 10% annually for the next 5 years, despite a tough
market environment. We have been closely tracking the
health of the English Label ecosystem and we are seeing
it consistently improve. Tighter supply of product and
higher pricing are increasing margin available to channel
partners (resellers/daigou), which should help drive a sales
recovery. Overall this means we are becoming slightly
more positive on the company’s prospects.
Freightways (+1%) provided its usual first quarter update
for fiscal 2022 at its Annual Meeting. Volumes in its key
network courier business were impacted by the shift to Alert
Level 4 but have subsequently returned to growth (Alert
Level 3 is supportive for home deliveries).
Infratil (+4%) announced a £130 million investment in
Kao Data, a UK datacentre business focused on high
performance computing. Clients include Nvidia, which
has the UK's most powerful supercomputer on Kao Data's
campus. The business is in the early stages of development,
but Infratil hopes to grow it to a £500 million platform
in time. The company also announced the purchase of
Auckland Radiology, which is Infratil's third investment
in the diagnostic imaging industry over the past 12
months. They have now built one of the largest platforms
in Australasia. It is good to see the team finding attractive
ways of deploying the significant amount of capital
received from the successful divestment of Tilt.
Mainfreight (-7%) shares pulled back after a very strong
last few months as Shanghai to Los Angeles sea freight
rates stopped rising (although remain near their very
elevated highs). Its freight forwarding peers continue to
report very strong results and we are expecting a strong
first half fiscal 2022 result in November. Mainfreight's
US trucking peers also reported strong September quarter
results which is supportive for its business there, as demand
remains strong and capacity in the market is limited given
challenges in finding drivers. We had trimmed our position
at higher levels.
Port of Tauranga (-3%) held its Annual Meeting, providing
an update on first quarter trading and full-year earnings
guidance. Trade volumes were strong in the first quarter,
supported by containerised cargo (+8%), imports (+10%)
and logs (+2%). Ship visits were up 8% as ships rationalise
their ports of call to focus on main hubs, as a result of
global supply chain disruption. Port of Tauranga has used
congestion charges to compensate for productivity losses,
increasing profits in 2021 by +15% despite container
volumes declining -4%.
1
Share Price Premium to NAV (using NAV to four decimal places)
MONTHLY UPDATE
November 2021
KFL NAV
$
1. 8 5
$
2.0 4
Share Price
PREMIUM
1
10.5
%
as at 31 October 2021

2
KEY DETAILS
as at 31 October 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
$1.69
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
316m
MARKET CAPITALISATION
$645m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 October 2021
6
%
29
%
INDUSTRIALS
22
%
INFORMATION
TECHNOLOGY
34
%
HEALTH CARE
7
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
Ryman Healthcare (-4%) announced the purchase of
land adjacent to two existing sites in Victoria, Australia.
Ryman has ambitions to double the rate at which it builds
units and beds to 1,600 annually within the next five years.
The purchase of additional sites is an important milestone
in supporting that growth trajectory.
Summerset (-4%) announced third quarter unit sales. The
199 units sold was a -26% decline on the preceding
quarter (a record 270 unit sales) although similar to the
corresponding quarter a year ago. Lockdowns impacted
sales during the quarter, but underlying demand remains
strong. An example of this is the Mt Denby village near
Whangarei, where all independent living units have been
pre-sold.
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

33
TOTAL SHAREHOLDER RETURN to 31 October 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
OCTOBER’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 October 2021
INFRATIL
+4
%
RYMAN HEALTHCARE
−4
%
SUMMERSET GROUP
−4
%
VISTA GROUP
−7
%
MAINFREIGHT
−7
%
MAINFREIGHT
19
%
FISHER & PAYKEL
HEALTHCARE
16
%
AUCKLAND
INTERNATIONAL
AIRPORT
15
%
INFRATIL
10
%
SUMMERSET
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.5%+3.3%+25.4%+27.6%+20.2%
Adjusted NAV Return(1.8%)+6.9%+16.2%+20.5%+16.7%
Portfolio Performance
Gross Performance Return(1.8%)+7.5%+18.4%+23.8%+19.6%
S&P/NZX50G Index(1.3%)+4.0%+8.4%+14.4%+13.5%
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 October 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
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
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. 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.
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.
»On 18 October 2021 a new issue of warrants (KFLWG)
was announced.
»The warrants will be issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Kingfish shares held on the Record Date of
12 November 2021.
»The warrants will be allotted to shareholders on 15
November 2021 and will be listed on the NZX Main
Board from 16 November 2021. (Information pertaining
to the warrants was mailed/emailed to shareholders on
1 November 2021).
»The Exercise Price of each warrant is $2.03, 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 Kingfish.
»The Exercise Date for the new warrants is
18 November 2022.