KFL – May 2022 monthly update

1
A WORD FROM THE MANAGER
In April, New Zealand equities declined (-1.9%)
(S&P/NZX 50), in what was a brutal month for many
global equities indices including the MSCI World
(-8.4%) and S&P 500 (-8.8%). The Kingfish portfolio
gross performance return was down (-2.5%) and the
Adjusted NAV return was down (-2.7%) in what was
another relatively quiet month in terms of fundamental
developments.
This was the sharpest fall in global equities since the
onset of COVID in early 2020. Falls of 8% or more in a
single month have only happened ten times in the last 35
years. So while they are infrequent, such falls do happen
every few years on average. A key factor driving
company valuations lower globally is higher interest rates
in response to high inflation. US 10 year Treasury yields,
a key benchmark, have now reached 3.0%, a level they
have hardly reached for more than 10 years (in fact the
average over this period has been barely above 2.0%).
A lot of negativity has been priced into shares at the
moment, while company earnings collectively are yet to
show any material deterioration.
a2 Milk (-13%) shares fell against the backdrop of
Shanghai's extended lockdowns to curb the spread
of Omicron. These lockdowns are creating renewed
COVID-related supply chain challenges in getting
product to the market.
Auckland Airport (+1%) shares rose as during the month
borders opened without any isolation requirement for
an initial group of overseas travellers. These including
Australian citizens, permanent residents, student and
temporary work visa holders. From 1 May travellers
from visa-waiver countries such as the United States will
also no longer need to isolate. These two developments
are significant for the near-term passenger outlook as
Australian citizens, visa holders and visa-waiver countries
represented around 85% of the airport’s traffic in 2019
(i.e., pre COVID). These border reopening steps are a
key enabler for international travel to begin its recovery
and for Auckland Airport to return to profitability.
Fisher & Paykel Healthcare (-12%) shares continued
to fall following its late March update. There were no
notable fundamental developments causing the decline.
However, COVID deaths around the world (as a proxy
for severe COVID illness which has been driving demand
for FPH's products in the short-term) continued to decline.
In addition, interest rates continued to increase, impacting
the valuation of growth companies such as FPH.
Pushpay (+16%) shares rose after the company
announced it has received approaches from third parties
interested in taking over the company. Like many other
technology companies, Pushpay shares had fallen
sharply in 2022. The third party interest shows that
some investors are willing to look through current market
concerns. We maintain a small position in Pushpay
because we like its market leading church giving and
engagement platform and long-term growth opportunity.
However, recently this has been offset by a number of
management and board changes and disappointing sales
execution which has resulted in a slowdown in growth.
Summerset (-0.3%) reported March quarter sales volumes,
with sales up +2% on the same quarter last year and
+19% on the December quarter. New sales of 167 were
in fact the second highest on record, despite disruption
caused by the Omicron peak in February and March.
Despite house price declines in some areas, Summerset
has not seen an impact on its business. Settlement
timeframes remain normal, demand is strong, and
inventory levels low.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
May 2022
KFL NAV
$
1.53
$
1. 7 1
Share Price
PREMIUM
1
12.0
%
as at 30 April 2022
Warrant Price
$
0.03
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 30 April 2022
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
$1.62
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
321m
MARKET CAPITALISATION
$549m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 April 2022
5
%
30
%
INDUSTRIALS
21
%
INFORMATION
TECHNOLOGY
35
%
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(2.5%)+1.1%(4.5%)+17.0%+17.9%
Adjusted NAV Return(2.7%)(2.7%)(7.5%)+9.4%+12.5%
Portfolio Performance
Gross Performance Return(2.5%)(2.4%)(6.6%)+11.6%+15.0%
S&P/NZX50G Index(1.9%)(0.0%)(6.7%)+5.9%+10.0%
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 30 April 2022

33
TOTAL SHAREHOLDER RETURN to 30 April 2022
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
2022
Mar
2005
APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
The remaining portfolio is made up of another 10 stocks and cash.
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2022
PUSHPAY HOLDINGS
+16
%
PORT OF TAURANGA
+5
%
MERIDIAN ENERGY
−6
%
FISHER & PAYKEL
HEALTHCARE
−12
%
A2 MILK CO
−13
%
MAINFREIGHT
20
%
FISHER & PAYKEL
HEALTHCARE
18
%
SUMMERSET
14
%
INFRATIL
10
%
AUCKLAND
INTERNATIONAL
AIRPORT
9
%

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
»Kingfish announced a new issue of warrants on 18
October 2021
»Information pertaining to the warrants was mailed/
emailed to shareholders on 1 November 2021
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Kingfish shares held based on the record date of 12
November 2021
»The warrants were allotted to shareholders on 15
November 2021 and listed on the NZX Main Board from
16 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.
Dividends totalling 7.22 cents per share have been
declared to date and there are two more dividends
expected to be declared in the remaining period up to the
announcement of the 18 November 2022 exercise price
»The Exercise Date for the new warrants is
18 November 2022