KFL – May 2023 monthly update

1
A WORD FROM THE MANAGER
In April, Kingfish’s gross performance return was up 0.8%
and the adjusted NAV return was up 0.7%. This compares
to the benchmark S&P/NZX50G, which was up 1.1%.
It was a relatively quiet month in terms of developments for
Kingfish’s portfolio companies.
Portfolio News
a2 Milk (-5%) provided updated guidance after its
manufacturing partner Synlait provided a significant
downward revision to profit expectations, in part due
to lower volumes from key customer a2. The a2 update
indicated that revenue growth for its financial year will
be at the low end of its previous guidance, closer to
+10%, versus previous expectations (low double-digits).
The difference is due to more subdued performance in its
English Label ‘daigou’ business, which has declined further
in 2023 to less than 20% of its overall infant formula
business (from over 50% before COVID). a2 also reduced
orders from Synlait as it wants to carry lower inventory
levels than previously (that is, a reduction in orders from
Synlait does not map directly to a2’s sales). a2 commented
that while overall its expectations have been slightly
reduced, its China Label business continues to outperform
expectations. This is consistent with other data that shows
a2 is continuing to grow overall infant formula market
share month-on-month in China.
Auckland Council reported the outcome of a public
consultation process regarding the proposed sale of some
or all of its 18% shareholding in Auckland Airport (+2%).
The majority of those surveyed (76%) supported at least a
partial sale of the Council's stake. Support is stronger for a
partial (52%) rather than full (24%) sell-down. Councillors
need to consider public feedback when voting on the issue,
and many have publicly reserved judgement on the issue
until now. The consultation feedback suggests the council
may sell at least some its stake. Following the feedback
announcement, Auckland Council have appointed Flagstaff
Partners, an independent investment bank, to advise it on
a sell-down process. The decision making will culminate
with the final mayoral proposal on 31 May, with all budget
decisions made on 8 June and adopted on 29 June.
Pushpay (+2%) will be taken over at $1.42 per share after
voting for the revised scheme of arrangement took place
on 27 April. The critical class of shares saw just over 90%
of voted shares in favour of the new price, well above
the 75% requirement for the scheme to be implemented.
This compares to around 56% in the first vote on 3 March
at the original $1.34 price. Kingfish expects to receive
consideration in the second half of May.
Summerset (-8%) announced sales volumes for the first
quarter of 2023. The result was short of our expectations,
with 115 new units sold, which is 31% below the same
period last year. Management noted that contracted but
not settled sales are actually above the same period in
2022, however the time frame to convert contracts to
settlements (and cash proceeds) has lengthened. This is on
par with extended settlement time frames in the residential
housing market. Management noted that settled sales
should increase in the second half of the year as it builds
and makes available more new units for sale. Resale
volumes (sales of units which were previously occupied)
also disappointed, with 95 units sold being 15% lower
than last year. Again, this was primarily due to settlement
delays. Despite the disappointing result, management
remain confident in underlying demand for Summerset’s
offering. They have maintained guidance of building
between 625 and 675 new units in 2023.
Portfolio Changes
Kingfish trimmed its holdings in Infratil, Fisher & Paykel
Healthcare, and Summerset during the month.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
May 2023
KFL NAV
$
1.41
$
1.30
Share Price
DISCOUNT
1
7.6
%
as at 30 April 2023
Matt Peek
Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 30 April 2023
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand
companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO SIZE
15-25 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
$1.49
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
330m
MARKET CAPITALISATION
$429m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 April 2023
3
%
31
%
INDUSTRIALS
22
%
FINANCIALS
32
%
HEALTH CARE
7
%
CONSUMER
STAPLES

UTILITIES
CASH
2
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(1.5%)(5.8%)(18.0%)+4.3%+9.6%
Adjusted NAV Return+0.7%(0.7%)(0.3%)+6.6%+9.5%
Portfolio Performance
Gross Performance Return+0.8%(0.5%)+0.6%+8.5%+11.8%
S&P/NZX50G Index+1.1%+0.4%+1.1%+4.5%+7.3%
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 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, 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 2023
INFORMATION
TECHNOLOGY
3
%

33
TOTAL SHAREHOLDER RETURN to 30 April 2023
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 2023
DELEGAT GROUP
+9
%
EBOS GROUP
-5
%
A2 MILK CO
-5
%
SUMMERSET GROUP
-8
%
VISTA GROUP
-12
%
MAINFREIGHT
17
%
FISHER & PAYKEL
HEALTHCARE
16
%
AUCKLAND
INTERNATIONAL
AIRPORT
16
%
INFRATIL
9
%
SUMMERSET
7
%
Share Price/Total Shareholder Return
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Mar
2004
Share Price Total Shareholder Return
Mar
2005
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2013
Mar
2014
Mar
2015
Mar
2016
Mar
2017
Mar
2018
Mar
2020
Mar
2019
Mar
2021
Mar
2023
Mar
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 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
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
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Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777
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
15 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. Matt
Peek (Portfolio Manager) and
Michael Bacon and Zoie Regan
(Senior Investment Analysts) have
prime responsibility for managing
the Kingfish portfolio. Together
they have significant 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 Andy Coupe
(Chair), Carol Campbell,
David McClatchy and Fiona
Oliver.
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 utilised
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