MLN – August 2022 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for July was up 8.3%, while
the adjusted NAV return was up 7.9%. This compared with
our global benchmark, S&P Large Mid Cap/S&P Small Cap
Index (50% hedged to NZD), which was up 7.1%.
Economic data during the month highlighted increasing
economic headwinds, with high inflation, disappointing
growth numbers and manufacturing activity losing
momentum. With two quarters of negative GDP growth,
the US is technically in a recession. However, for now
unemployment remains low and consumer spending
continues to grow. The Federal Reserve increased interest
rates again (75bps) after July inflation numbers came in
higher than expected.
Developed market equities were up 8.0% in the month (year-
to-date down 13.9%), while there was weakness in Chinese
markets (down 9.4%) due to extended COVID restrictions
hampered overall emerging market returns.
Portfolio News
Netflix (+29%) rallied after the company released Q2
earnings, announcing that it lost fewer subscribers than
expected during the quarter and guided to a return to
subscriber growth in Q3. The company advised that
subscriber retention in the US and Canada region (UCAN)
is almost back to historical levels, following a period of
elevated churn when Netflix increased prices in the region
earlier this year. This is pleasing as UCAN subscribers are
highly valuable, contributing 44% of Netflix revenues whilst
being 33% of the subscriber base. Netflix is also working on
an ad-supported tier and paid account sharing to improve
monetisation of an estimated 100mn households who use
but do not pay for the service. We think these initiatives, as
well as the company’s focus on right-sizing its operations and
content spend, will contribute to robust free cash flow growth
going forward.
Amazon (+27%) had a very strong month, cumulating in a
robust earnings update at the end of the month. Amazon sits
at the intersection of three structural growth themes, being
e-commerce, cloud computing and the shift of advertising
dollars online. Better than expected results in each of these
verticals coupled with sequential operating cost improvement
drove strong performance. We are encouraged by the
resilience in Amazons e-commerce business and growth in
the company’s advertising business despite mixed results
from competitors in these industries.
PayPal (+24%) was up in the month notably as Elliott
Management, one of the largest activist funds globally, was
reported as taking a stake in the company. It is unconfirmed
how large Elliott’s stake in the company is or what strategic
initiatives they plan to recommend to the management team
and board of PayPal. Activist investors are frequently drawn
to companies with good business models and strong financial
positions with the flexibility to deploy additional capital to
increase shareholder value, all of which we believe to be true
for PayPal.
Meta Platforms (-1%) reported revenue that grew only 3%
(at constant exchange rates) during Q2. This was broadly
in line with expectations, although the company’s guidance
of no revenue growth for Q3 disappointed the market, and
macroeconomic uncertainty is causing advertisers to pull
back on ad spending. Part of this slowdown is self-inflicted,
with Meta encouraging Facebook and Instagram users to
spend more time watching Reels videos (which currently have
a lower ad load). We saw this same dynamic when Meta first
launched Stories in 2018, but Stories is now monetising well
and has been a major contributor to growth. We believe Meta
will return to solid revenue growth as ad load is increased
in Reels, and the company laps recent Apple ad-tracking
headwinds.
Alibaba (-21%) and Tencent (-13%) declined along with
the wider Chinese market on the threat of renewed and
sustained COVID restrictions, following earlier optimism that
they may be winding down. Investors were also wary of the
lack of progress in negotiations between the SEC and China
regulators around audit requirements for Chinese stocks
listed on US stock exchanges. Alibaba this month announced
it will be shifting its primary listing to the Hong Kong stock
exchange, which would mitigate any risks around this.
1
Share Price Premium to NAV (using net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
August 2022
$
1. 1 3
Share Price
MLN NAVPREMIUM
1
$
0.96 18.0
%

as at 31 July 2022

2
KEY DETAILS
as at 31 July 2022
FUND TYPE
Listed Investment Company
INVESTS IN
Growing international companies
LISTING DATE
1 October 2007
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO
SIZE
20-35 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 + 5%
PERFORMANCE FEE
10% of returns in excess of
benchmark and high-water mark
HIGH WATER MARK
$1.17
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
201m
MARKET CAPITALISATION
$227m
GEARING
None (maximum permitted 20% of
gross asset value)
Portfolio Changes
There were no substantive changes to the portfolio in July.
Ashley Gardyne
Senior Portfolio Manager
Fisher Funds Management Limited
SECTOR SPLIT
as at 31 July 2022
31
%
CONSUMER
DISCRETIONARY
9
%
HEALTH CARE
22
%

FINANCIALS
24
%
INFORMATION
TECHNOLOGY
GEOGRAPHICAL
SPLIT
as at 31 July 2022
9
%
ASIA
78
%
NORTH
AMERICA
2
%

SOUTH AMERICA
The Marlin portfolio also holds cash.
12
%
9
%
COMMUNICATION
SERVICES

WEST
EUROPE

Nov
2007
Nov
2008
Nov
2009
Nov
2010
Nov
2011
Nov
2012
Nov
2014
Nov
2013
Share Price/Total Shareholder Return
Share PriceTotal Shareholder Return
Nov
2015
$
1.00
$
0.00
Nov
2016
Nov
2017
$
3.00
$
4.00
$
5.00
$
2.00
Nov
2018
Nov
2019
Nov
2020
Nov
2021
3
JULY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
NETFLIX
+29
%
FLOOR & DÉCOR
+28
%
AMAZON
+27
%
PAYPAL HOLDINGS
+24
%
5 LARGEST PORTFOLIO POSITIONS as at 31 July 2022
AMAZON
9
%
PAYPAL
8
%
META PLATFORMS
7
%
ALPHABET
7
%
FLOOR & DECOR
7
%
The remaining portfolio is made up of another 17 stocks and cash.
PERFORMANCE to 31 July 2022
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.9%(0.8%)(24.9%)+16.6%+18.3%
Adjusted NAV Return+7.9%(0.8%)(20.5%)+8.2%+11.3%
Portfolio Performance
Gross Performance Return +8.3%(0.7%)(19.6%)+11.3%+14.4%
Benchmark Index^+7.1%(0.2%)(6.5%)+8.3%+8.8%
^Benchmark index: S&P Large Mid Cap/S&P Small Cap Index (50% hedged to NZD)
Non-GAAP Financial Information
Marlin 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 and currency hedging 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 Marlin Non-GAAP Financial Information Policy. A copy of the policy is available at http://marlin.co.nz/about-marlin/marlin-policies/
STONECO
+24
%
TOTAL SHAREHOLDER RETURN to 31 July 2022

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 Marlin Global 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 Marlin Global Limited or its portfolio companies, please note that fund performance can
and will vary and that future results have no correlation with results historically achieved.
Marlin Global Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 484 0365 | Fax: +64 9 489 7139
Email: enquire@marlin.co.nz | www.marlin.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
MARLIN GLOBAL
Marlin 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 20 and 35 quality growing
international companies (excluding
New Zealand and Australia) through
a single, professionally managed
investment. The aim of Marlin
is to offer investors competitive
returns through capital growth and
dividends.
CAPITAL MANAGEMENT STRATEGIES
Regular Dividends
»Quarterly distribution policy introduced in August 2010
»Under this policy, 2% of average NAV is targeted to be
paid to shareholders quarterly
»Dividends paid by Marlin 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
»Marlin 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
»Marlin 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 Marlin 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 Marlin at a fixed
price on a fixed date
»There are currently no Marlin warrants on issue

MANAGEMENT
The Manager has authority delegated
to it from the Board to invest
according to the Management
Agreement and other written
policies. Marlin’s portfolio is managed
by Fisher Funds Management
Limited. Ashley Gardyne (Senior
Portfolio Manager), Chris Waters
and Harry Smith (Senior Investment
Analysts) have prime responsibility
for managing the Marlin portfolio.
Together they have significant
combined experience and are very
capable of researching and investing
in the quality global companies that
Marlin targets. Fisher Funds is based
in Takapuna, Auckland.

BOARD
The Board of Marlin comprises
independent directors Andy
Coupe (Chair), Carol Campbell,
David McClatchy and Fiona
Oliver.