KFL – August 2024 monthly update

1
A WORD FROM THE MANAGER
It was a strong month for New Zealand shares in July (S&P/
NZX 50 gross index +5.9%). The Kingfish portfolio gross
performance return and Adjusted NAV return were +5.7%
and +5.6% respectively. This was off the back of ‘dovish’
commentary from the Reserve Bank, which may signal a shift
towards lower interest rates more conducive to economic
growth. There was also takeover interest in some New
Zealand companies at large premiums to the prevailing share
prices.
Auckland Airport (-2%) saw the Commerce Commission
release its draft report reviewing proposed passenger charges
for the 2023 to 2027 financial years. The report suggested
charges may need to be reduced because Auckland Airport’s
return on its regulated assets (8.7%) would be higher
than what it deems to be fair (7.3-7.5%). Auckland Airport
acknowledged it will reduce charges if the final report
maintains this view, though management continues to contest
the appropriate level of return should be higher. Its view is
that the Commission is under-estimating the riskiness of its
aeronautical business, with the COVID-affected period a key
illustration. It is also investing significantly in some regulated
assets without any income, which the Commission does not
consider in its return calculation.
Contact Energy (-6%) provided initial guidance for its new
2025 financial year and suggested its dividend will rise to 39¢
(as anticipated) but this will not increase further in the next
couple of years. New capacity at the Tauhara geothermal
plant has taken longer than expected to come online and a
worsening in the shortage of gas in New Zealand plus low
hydro lake levels has made it more expensive for Contact
to purchase enough electricity in the open market to meet
customer demand. Contact also announced its decision to
proceed with a 100MW battery near Glenbrook, Auckland
which will allow it to generate electricity in the South Island
off-peak and sell into higher North Island pricing at better
times, which should boost earnings by around $20 million
when commissioned in 2026.
Mainfreight (+12%) was one of many cyclical companies
that saw its share price rise over the month. The company,
however, reported a disappointing trading update for the first
15 weeks of its new 2025 financial year at its Annual Meeting,
with pre-tax profit down -11% despite a +8.5% increase in
revenue. As always, the dozen-plus parts of its business
are travelling at different speeds based on geography and
customer offering. Australia continues to perform strongly,
with pre-tax profit growth of +7.5% and revenue growth of
+17%. The Air & Ocean international freight forwarding division
delivered surprisingly weak earnings, with global shipping
disruption and higher freight rates not benefiting the company
(yet), in contrast to the situation of 2021 and 2022. It called
out freight margins as being thinner, with many customers
particularly price-sensitive in the current environment.
Management seemed calm despite the tough start to the year
and pointed to high levels of sales activity in June and 300+
customer gains as reasons to remain confident about the
outlook.
Summerset (+18%) delivered a solid second quarter sales
update, with resales particularly strong (20% ahead of last
year) despite the national housing market remaining sluggish.
The company also commented that underlying earnings for
the six months to June will be similar to last year. Summerset
remained silent on full year guidance, but reiterated it expects
to build approximately 675 to 725 units in 2024, with the slight
caveat that it expects it will deliver closer to the lower end as
the company deliberately manages deliveries to soft market
conditions. The strong share price move reflected a takeover
offer for fellow listed retirement operator Arvida at a large
premium, with all listed operators seeing large gains (Ryman
was up +27%). The prospect of earlier and deeper interest rate
cuts will potentially also improve the prospects for the local
housing market sooner than anticipated.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
August 2024
KFL NAV
$
1.38
$
1.30
Share Price
DISCOUNT
1
5.9
%
as at 31 July 2024
Matt Peek
Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 31 July 2024
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
$1.33
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
343m
MARKET CAPITALISATION
$445m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 July 2024
1
%
26
%
9
%
CASH
INDUSTRIALS
5
%

UTILITIES
MATERIALS
2
%
CONSUMER
STAPLES
5
%
36
%
HEALTHCARE
INFORMATION
TECHNOLOGY
16
%

FINANCIALS
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+11.9%+8.8%+6.2%(5.8%)+7.2%
Adjusted NAV Return+5.6%+5.5%+7.4%+0.2%+5.6%
Portfolio Performance
Gross Performance Return+5.7%+6.0%+9.2%+1.5%+7.4%
S&P/NZX50G Index+5.9%+3.7%+2.9%(0.5%)+2.7%
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 kingfish.co.nz/about-kingfish/kingfish-policies.
PERFORMANCE as at 31 July 2024

33
TOTAL SHAREHOLDER RETURN to 31 July 2024
JULY'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 31 July 2024
RYMAN
HEALTHCARE
+27
%
FREIGHTWAYS
GROUP
+18
%
SUMMERSET
GROUP
+18
%
PORT OF
TAURANGA
+17
%
MAINFREIGHT
+12
%
FISHER & PAYKEL
HEALTHCARE
18
%
MAINFREIGHT
16
%
AUCKLAND
INTERNATIONAL
AIRPORT
12
%
INFRATIL
9
%
SUMMERSET
8
%
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
Mar
2024

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
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 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
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
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.
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