MLN – December 2022 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for November was 3.1%, while
the adjusted NAV return was up 2.0%. This compared with our
global benchmark, S&P Large Mid Cap/S&P Small Cap Index
(50% hedged to NZD), which was up 3.6%.
Global equities (MSCI World) were up +6.8%. US equities
underperformed (+5.4%), European equities outperformed
(+9.6%) and global emerging market equities sharply
outperformed (+14.6%).
Global bond yields have been falling fairly sharply which is
helping drive share markets higher. Markets are reasonably
convinced now that we are past the peak in global inflation. The
Bloomberg global inflation indicator (consumer price inflation or
CPI for every country, weighted by GDP) is now down around
0.5% from its peak.
One of the key thematics we have been focusing on is the
unwind of COVID over-earning. There was a fairly clear pull
forward of demand during the pandemic for many industries
e.g., Netflix (we all watched more TV) and online shopping (we
all became online shopaholics during the pandemic). The market
was well aware that this was going to unwind. However, the
sting in the tail has been that a number of companies that saw
this abnormally strong demand, extrapolated strong growth
expectations into the future and loaded costs and investment
into their businesses to service that forecast strong demand.
Meta Platforms, for example, hired 28% more people. Hence,
just as the revenue from the COVID over-earning unwound, costs
were being ramped up.
The good news is that companies that are further through this
journey have performed strongly out the other side. Netflix for
example saw demand for its service unwind much earlier in the
year and cut costs to right size its business to a slower demand
environment.
The message from the market is clear – if you are tone deaf and
lackadaisical on costs, you will be punished. But, if you listen to
the market and reign in spending and right size your business,
you will be rewarded.

Portfolio
Alibaba (+30%) and Tencent (40%) rallied strongly during
November as enthusiasm regarding possible changes to
China’s COVID-19 policy and a face-to-face meeting between
the country’s leader Xi Jinping and President Biden (seen as
“productive”) fuelled a rally in Chinese stocks. Alibaba also
updated the market on its quarterly earnings that provided a
mixed message of slower growth, but better profitability.
Meta Platforms (+27%) reversed course on forecast 2023
expense growth. In a memo to the firm, CEO and founder, Mark
Zuckerberg detailed the layoff of 13% (11k) of Meta’s people.
The company’s expense growth has been a large concern for
the market, so investors welcomed the expense cuts, which are
an acknowledgement by the firm that they need to show greater
cost discipline. In general, this is a trend we are witnessing
across the tech sector.
Signature Bank (-12%) serves crypto participants including
exchanges. The bank is very conservative, both in terms on
who the company banks and the services provided. As was the
case with the Terra Luna stable coin crash, Signature Bank has
no banking relationship with now bankrupt FTX exchange or
related companies. In general, Signature does not lend money
on fiat deposits related to crypto assets, invest in digital assets
or custody digital assets for clients. The bank’s core business
which is lending on New York multi-family real estate and taking
deposits in more traditional verticals continues to grow nicely.
Portfolio Changes
There were no substantive changes to the portfolio in the month.
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
December 2022
$
0.93
Share Price
MLN NAVPREMIUM
1
$
0.87 8.4
%

as at 30 November 2022
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Warrant Price
$
0.04

2
KEY DETAILS
as at 30 November 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
$1.15
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
202m
MARKET CAPITALISATION
$188m
GEARING
None (maximum permitted 20% of
gross asset value)
SECTOR SPLIT
as at 30 November 2022
31
%
CONSUMER
DISCRETIONARY
7
%
HEALTH CARE
21
%

FINANCIALS
25
%
INFORMATION
TECHNOLOGY
GEOGRAPHICAL
SPLIT
as at 30 November 2022
9
%
WEST
EUROPE
76
%
NORTH
AMERICA
2
%

CASH &
DERIVATIVES
14
%
10
%
COMMUNICATION
SERVICES

ASIA
2
%
CASH &
DERIVATIVES
3
%

SOUTH AMERICA

3
NOVEMBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
TENCENT HOLDINGS
+40
%
ALIBABA GROUP
HOLDING
+30
%
META PLATFORMS
+27
%
GREGGS
+16
%
5 LARGEST PORTFOLIO POSITIONS as at 30 November 2022
AMAZON
7
%
ALPHABET
7
%
PAYPAL
6
%
META PLATFORMS
6
%
ICON
5
%
The remaining portfolio is made up of another 17 stocks and cash.
PERFORMANCE to 30 November 2022
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(6.0%)(13.0%)(35.4%)+7.1%+12.6%
Adjusted NAV Return+2.0%(5.5%)(23.9%)+3.3%+7.2%
Portfolio Performance
Gross Performance Return +3.1%(4.9%)(23.0%)+6.2%+10.2%
Benchmark Index^+3.6%+1.8%(7.7%)+6.2%+6.3%
^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 dividends (and other capital management initiatives) and after expenses, fees, and tax,
»adjusted NAV return – the percentage change in the adjusted NAV,
»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/
GARTNER
+15
%
TOTAL SHAREHOLDER RETURN to 30 November 2022
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
Nov
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
Email: enquire@marlin.co.nz | www.marlin.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777
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
»Marlin announced a new issue of warrants
(MLNWF) on 18 October 2022
»Information pertaining to the warrants was
mailed/emailed to all shareholders on
25 October 2022
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every
four Marlin shares held based on the record date
of 2 November 2022
»The warrants were allotted to shareholders on
3 November 2022 and listed on the NZX Main
Board from 4 November 2022
»The Exercise Price of each warrant is $0.99,
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
Marlin
»The Exercise Date for the new warrants is
10 November 2023

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. Sam Dickie (Senior Portfolio
Manager), Chris Waters (Senior
Investment Analyst), and Lily Zhuang
and Daniel Moser (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.