MLN – May 2024 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for April was down -5.3%, while
the adjusted NAV return was down -5.2%. This compared with
our global benchmark, S&P Large Mid Cap/S&P Small Cap Index
(50% hedged to NZD), which was down -3.3%.
April was a tougher month for equity markets. Hotter-than
expected US inflation, the risk of escalation in the Middle East
boosting oil prices, and Federal Reserve officials talking down rate
cut expectations drove interest rates higher and equity markets
lower.
Developed market equities fell -3.7%, the US leading the way
down -4.1%, with Europe -1.5% and Japan -0.9%. European
equities outperformed their US counterparts, as stronger
economic indicators, and lower-than- expected inflation,
suggested a soft landing could be in reach.
China continued its strong 2024 performance, with the MSCI
China index up 6.5%, and up 20% from January lows. While the
economy is not out of the woods yet, a better-than-expected first
quarter GDP print and cheap valuations has seen renewed interest
from investors.
The US reporting season has begun, and so far, companies have
broadly beaten expectations for first quarter earnings. The market
did punish companies that missed estimates, especially where
valuations had run up in recent months. As we report below, it
was a mixed bag for the Big Tech names that have reported; but
one theme that did emerge was the step up in capex expectations
driven by artificial intelligence (AI).
Portfolio News
Alphabet (+8% in local currency) was the strongest contributor
to portfolio returns in April, driven by a strong earnings result.
The market had been concerned that generative AI would disrupt
Alphabet’s key Search business and Alphabet would struggle to
reinvent itself. Alphabet put these concerns to bed for the time
being with an unexpected acceleration in Search revenue growth.
Its new AI product, Search Generative Experience (SGE), has also
had positive initial results. Consumers are increasing search usage
when they use SGE which potentially increases the revenue pie
for Alphabet. Like Search, YouTube posted unexpected revenue
growth acceleration, growing +21% year-on-year in the quarter.
Google Cloud also outperformed expectation with growth coming
in at +28%. Operating income margins were better than expected
at 32% (vs. 29% expected). Like peers, Alphabet is increasing
capex spend towards AI investment given the large opportunity it
sees ahead. But management were measured, saying that they
are still committed to continued profitable growth while investing
for the future.
Boston Scientific (+5%) had a strong earnings report. First
quarter revenue growth was well above even the most optimistic
estimate, as the company grew strongly across almost all its
medical device segments. The company successfully launched its
latest technology that aims to help correct an irregular heartbeat
while minimizing the damage to nearby healthy tissues. With a
leading position in an addressable market in the billions of dollars,
this product has potential to be a multi-year growth driver for the
business.
Tencent (+14%) benefited from the improved sentiment in China,
highlighting the benefits of geographic diversification. Tencent is
one of the highest quality companies in China, if not globally, with
its Weixin mobile app used daily by over 1 billion people in China,
for everything from communicating with friends, watching videos,
or paying for dinner. We recently upgraded our STEEPP ‘E2’ score
(but not our weight) as Tencent starts to monetise this large user
base through highly profitable revenue streams like advertising and
financial services. As sentiment improves, we are starting to see
the quality and idiosyncratic growth of Tencent reflected in share
performance, with Tencent outperforming its Chinese technology
peers in April and YTD.
Edward’s Lifesciences (-11%) fell as revenue in its core
transcatheter aortic heart valve (TAVR) fell slightly below
expectations, as they saw aggressive pricing from competitors in
Europe that led to doctors trialling the competitive TAVR devices.
Edwards’s device, while premium priced, has better clinical
outcomes for patients; and is typically easier for doctors to use;
and with the launch of its latest Resilia TAVR device into Europe
this month, we expect growth to improve throughout the rest of
the year.
Floor & Décor (-15%) had a tough month as it retreated from the
recent highs it made in March. Through the month, expectations
for mortgage rate cuts waned and US existing home sales
reported for March took a step back, both of which are generally
seen as headwinds to Floor & Décor. Even though the macro
environment continues to be difficult for Floor & Décor, as long-
term investors we look through this and added some weight
during the month. Floor & Décor continues to have a strong value
proposition for customers and is gaining market share.
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 2024
$
0.99
Share Price
DISCOUNT
1
2.6
%

as at 30 April 2024
MLN NAV
$
1.02

2
KEY DETAILS
as at 30 April 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
$1.02
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
215m
MARKET CAPITALISATION
$213m
GEARING
None (maximum permitted 20% of
gross asset value)
Meta (-11%) had a negative reaction to its earnings release.
While results for the quarter were slightly better than expected,
revenue guidance fell short of elevated expectations. Management
also increased expense and capex guidance for the year. Meta
sees a lot of opportunity in AI and is already taking advantage
of the technology to drive its business. For example, 50% of the
content that people see on Instagram is now AI recommended. AI
is helping Meta place more relevant ads in front of more people.
Management was quick to reiterate that while they see a multi-
year investment cycle for AI, they are still focussed on operating
efficiency in the business.
SECTOR SPLIT
as at 30 April 2024
29
%
8
%
19
%

FINANCIALS
20
%
GEOGRAPHICAL SPLIT
as at 30 April 2024
5
%
WESTERN
EUROPE
88
%
NORTH
AMERICA
3
%

CASH &
DERIVATIVES
16
%
4
%

ASIA
3
%
CASH &
DERIVATIVES
HEALTH CARE
INFORMATION
TECHNOLOGY
5
%

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

3
APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
(in local currency) during the month
TENCENT
HOLDINGS
+14
%
META
PLATFORMS
-11
%
GARTNER
INCORPORATED
-13
%
MSCI
INCORPORATED
-15
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2024
AMAZON
9
%
ALPHABET
7
%
MICROSOFT
7
%
FLOOR & DÉCOR
6
%
META PLATFORMS
6
%
The remaining portfolio is made up of another 16 stocks and cash.
PERFORMANCE to 30 April 2024
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(1.0%)+4.0%+22.9%(5.5%)+12.0%
Adjusted NAV Return(5.2%)+6.2%+24.8%+0.7%+9.7%
Portfolio Performance
Gross Performance Return (5.3%)+6.9%+27.9%+2.5%+12.6%
Benchmark Index^(3.3%)+5.7%+17.2%+5.4%+9.0%
^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.
FLOOR & DÉCOR
-17
%
TOTAL SHAREHOLDER RETURN to 30 April 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
»Marlin announced a new issue of warrants on
29 April 2024
»The new warrant term offer document was sent to all
Marlin shareholders in early May 2024
»The warrants will be 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
15 May 2024
»Warrants will be allotted to all eligible Marlin shareholders
on 16 May 2024
»The new warrants (MLNWG) are expected to commence
trading on the NZX Main Board from 17 May 2024
»The Exercise Date for the new Marlin warrants is
16 May 2025

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 and Charles Barty
(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.