MLN – March 2024 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for February was up 8.0%,
while the adjusted NAV return was up 7.6%. This compared with
our global benchmark, S&P Large Mid Cap/S&P Small Cap Index
(50% hedged to NZD), which was up 4.6%.
February was a solid month for equity markets, with resilient
economic data and strong earnings reports both driving the
market higher. Emerging market equities performed well, up 5%,
thanks primarily to a Chinese rebound.
The results reporting season in the US has been strong. With over
90% of S&P 500 firms having reported, nearly three quarters have
beaten expectations. Economic data also proved resilient, with
the US PMI suggesting activity continued to expand over February
and the US economy added 353k jobs in January.
Portfolio
Meta (+26%) reported strong results at the beginning of February,
with better-than-expected revenue and profit for the quarter. And
Meta guided to higher-than-expected next quarter revenue growth
of 25% (vs. circa 20% expected). Meta’s short-form video format
Reels that had been a headwind to revenue growth has now
turned into a tailwind as the product is now accepted as a core
part of advertiser’s budgets. Meta’s investment in AI capabilities
has helped the company deliver more efficient advertising. 2023
was Meta’s “year of efficiency”, and it has executed very well with
operating income margins expanded from 25% in 2022 to 35% in
2023. Importantly, the company signalled that the focus on cost
discipline and running leaner teams would continue into 2024 and
beyond. Meta initiated its first dividend which sent a positive signal
to investors that while Meta continues to invest for growth (i.e. the
metaverse) it will be a measured approach.
Icon (+23%), the leading clinical research organisation (“CRO”),
was among our best performers, after a positive earnings result
and management commentary on end-market demand gave the
market confidence around medium-term growth prospects. The
positive tone from management was a turnaround from a more
cautious view in early January, which saw CRO stocks tumble
nearly 10%. Icon’s new project pipeline continues to grow, driven
by strong underlying R&D spend in its large pharmaceutical
customer base; a slow but steady recovery in biotech demand;
and new business wins driving market share gains.
Floor & Décor (+20%) finished 2023 with a firm last quarter, with
a better-than-expected result. Floor & Décor is operating through
the toughest housing environment with existing home sales at
GFC lows, and the company has posted four consecutive quarters
of negative same store sales. Regardless of this, the company
continues to take strong market share thanks to its superior value
proposition for customers.
Amazon (+14%) also had a better-than-expected quarterly
earnings report. The highlight from the earnings report was
operating income which came in 26% higher than expected
($13.2b vs. $10.5b expected) and guided to operating income
above expectations. Amazon continues to gain efficiencies as
it grows into its expanded logistics and fulfilment infrastructure.
AWS, Amazon’s important cloud computing platform, has
stabilised its growth after a year where customers have been
slowing or optimising spend. Amazon’s high-margin advertising
business also reaccelerated revenue growth in the quarter to 26%
year-on-year (y/y) and is now an impressive $47b business.
Salesforce (+10%) reported revenues and earnings largely as
expected and the guidance for the next financial year was also
solid. Like peer tech companies, Salesforce spent 2023 adjusting
its cost base and have expanded operating margins by 8% to
31%. Salesforce are seeing some benefit from AI adoption as
Data Cloud grows extremely fast (90% y/y). For customers to
take advantage of AI models, they must first get their data in
order upon which the AI models will be run, which the Data Cloud
product addresses.
Alphabet (-1%) earnings were largely in-line with expectations.
While Alphabet has made some progress on cost discipline,
it has not been to the same degree as peers and hence the
profit margins have not expanded at the same rate, expanding
circa 1% in 2023. Alphabet’s core Search business and Google
Cloud business both accelerated revenue growth in the quarter.
Weighing on Alphabet’s stock is negative sentiment that the
company has become an AI laggard. Launches of its AI products
so far have not met high expectations, because Alphabet has
traditionally been the thought leader around AI and machine
learning. Thus far AI does not seem to have impacted Alphabet’s
business model, as many are concerned, but we continue to
monitor this closely.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
March 2024
$
1.01
Share Price
DISCOUNT
1
3.7
%

as at 29 February 2024
MLN NAV
$
1.05

2
KEY DETAILS
as at 29 February 2024
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
$1.04
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
214m
MARKET CAPITALISATION
$216m
GEARING
None (maximum permitted 20% of
gross asset value)
UnitedHealth (UNH; -4%), the leading US healthcare services
business, fell as the Wall Street Journal reported the Department
of Justice has launched a “non-public antitrust” investigation into
UNH. The investigation is focussed on the relationship between
UNH’s insurance business and healthcare provider business
(Optum Health); and its impact on patients, competing insurance
companies, and competing healthcare providers. Details are
still limited, and it is too early to predict what impact, if any this
will have on UNH. UNH say that patients typically see better
outcomes and have higher customer satisfaction scores when it
operates under this integrated model. We continue to follow this
investigation closely.
SECTOR SPLIT
as at 29 February 2024
29
%
9
%
19
%

FINANCIALS
19
%
GEOGRAPHICAL SPLIT
as at 29 February 2024
4
%
WESTERN
EUROPE
83
%
NORTH
AMERICA
3
%

CASH &
DERIVATIVES
17
%
10
%

ASIA
3
%
CASH &
DERIVATIVES
HEALTH CARE
INFORMATION
TECHNOLOGY
4
%

CONSUMER
STAPLES
CONSUMER
DISCRETIONARY
COMMUNICATION
SERVICES
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Portfolio activity
No new additions or exits during the month.

3
FEBRUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
(in local currency) during the month
META PLATFORMS
+26
%
ICON
+23
%
FLOOR & DÉCOR
+20
%
DOLLAR TREE
+14
%
5 LARGEST PORTFOLIO POSITIONS as at 29 February 2024
AMAZON
9
%
MICROSOFT
7
%
FLOOR & DÉCOR
6
%
META PLATFORMS
6
%
SALESFORCE
6
%
The remaining portfolio is made up of another 16 stocks and cash.
PERFORMANCE to 29 February 2024
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+4.1%+13.3%+15.8%(1.2%)+13.1%
Adjusted NAV Return+7.6%+15.0%+29.7%+4.5%+11.6%
Portfolio Performance
Gross Performance Return +8.0%+15.9%+32.9%+6.3%+14.5%
Benchmark Index^+4.6%+10.5%+17.6%+7.6%+9.8%
^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 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 marlin.co.nz/about-marlin/marlin-policies.
AMAZON
+12
%
TOTAL SHAREHOLDER RETURN to 29 February 2024
Share Price/Total Shareholder Return
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Share Price Total Shareholder Return
Nov
2007
Nov
2011
Nov
2013
Nov
2014
Nov
2015
Nov
2008
Nov
2009
Nov
2010
Nov
2016
Nov
2020
Nov
2012
Nov
2022
Nov
2017
Nov
2018
Nov
2019
Nov
2021
Nov
2023

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