KFL – May 2025 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and adjusted
NAV return in April were -3.1% and -3.2% respectively, versus the
New Zealand shares benchmark S&P/NZX 50 return of -3.0%.
A key development in the month was the onset of significant
volatility in global markets as a result of the ‘Liberation Day’ tariffs
announced early in the month by US President Trump. At face
value the first order impact of the 10% tariffs announced for New
Zealand is modest within the Kingfish portfolio. However, there is
still uncertainty about what the final arrangements may be, and
the impact on the global economy. As such the impact on share
prices in April was wider than just the companies that are directly
impacted by tariffs.
Auckland Airport (-8%) shares fell as it came to light that the
Ministry of Business, Innovation & Employment (MBIE) review
of the Commerce Act is reviewing some core aspects of the
airport regulatory regime. While there has been little detail
released in relation to the review, MBIE has consulted with some
stakeholders including selected airports and airlines. The airport
also released its updated Master Plan, the first update since
2014, which provides an outline of the direction of travel for the
evolution of the precinct beyond the immediate plans under way.
The airport continues to expect it will see growing passenger
numbers, reaching around 38 million by 2047, representing
growth of around 3.1% per year from the current level.
Wine producer Delegat (-11%) has been impacted by the US
'Liberation Day' tariffs, with around half the company's sales
into the US market. At face value on around $100 million of
sales to the US this could represent approximately a $10 million
tariff cost payable by Delegat's distributors. In reality, some
degree of the price increases are likely to be passed on to the
consumer, particularly as over 40% of the 1.8 billion bottles of
wine consumed annually in the US are imported from Europe
and facing even higher tariffs (20%). The company revised down
its net profit guidance for the year to June from the 'low end of
$55-60 million' to $47-50 million, on the basis that it has seen
reduced orders in the current quarter as the industry (producers,
distributors, and retailers) calibrate for the impost. The company
also announced it has bounced back from the low 2024 harvest
with the 2025 harvest reaching 47,461 tonnes, up 39% on the
previous year, which will see the cost of producing each bottle of
wine for the next year improve.
EBOS (-4%) announced a $271 million equity raising to fund
its $115 million acquisition of SVS, New Zealand's leading
veterinarian supplier, with the excess cash raised to bolster its
headroom capacity for future bolt-on acquisitions. The SVS
acquisition is consistent with the EBOS strategy, broadening
out its portfolio in New Zealand a geographic expansion of its
Australian vet wholesale business, Lyppard (acquired back in
2013). We remain attracted to EBOS's growth prospects and
believe the acquisition is supportive of the company's strategy.
The likely impact of new US tariffs on Fisher & Paykel Healthcare
(FPH, +1%) continues to evolve as further clarity comes to light
around the finer details, but pleasingly downside risks appear to
have reduced considerably over the month and may even become
a non-event. Back in February, FPH warned that it would face
higher costs and a 2–3-year delay to its key gross margin goal
of 65% following President Trump's announced 25% tariffs on
products imported from Mexico. However, after the early April
tariff announcement, FPH has confirmed that a large majority of
the products it manufactures in Mexico are compliant with the
USMCA and as such are exempt from USA tariffs (the United
States-Mexico-Canada Agreement is the prevailing free trade
agreement between those countries with Trump authorising the
current version in 2020). The 'Liberation Day' update may see
FPH caught by the 10% tariff on some products imported into the
US from New Zealand, although there is a carve-out for certain
medical equipment that the company may be able to use, which
could reduce the likely tariff to merely a token level.
Infratil (+2%) hosted an investor visit to its Melbourne campus
of its key investee company, CDC Data Centres. Limited new
financial information was provided, although management stated
they expect earnings to double over the next 2 years, broadly in
line with expectations. CDC is in discussions for over 100 MW
of contracts in addition to the 400 MW announced at Infratil’s
June 2024 equity raising (of which 130MW is outstanding). The
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 2025
KFL NAV
$
1.31
$
1.25
SHARE PRICE
DISCOUNT
1
4.3
%
as at 30 April 2025

2
KEY DETAILS
as at 30 April 2025
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
$1.23
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
348m
MARKET CAPITALISATION
$435m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 April 2025
investor day highlighted the AI-readiness of CDC's datacentres,
including floor plate loadings of up to 3 tonnes, which can
support higher power densities of AI datacentres. Key customers
are focusing on supporting a concentrated list of suppliers
going forward, and CDC is well placed within this group. CDC is
also broadening customer relationships outside Microsoft and
increasing business with other ‘hyperscaler’ customers.
Mainfreight (-10%) has been caught in the crossfire of the
greater-than-expected tariffs, given its exposure to global the
freight market, particularly its international Air & Ocean freight
forwarding operations (including between China and the US). The
share price declined given the uncertainty around the size of a
potential negative impact, although rebounded in early May as the
company put out an announcement describing its current view of
the trading landscape as it stands.
Summerset (-4%) reported a pleasing start to 2025, with March
quarter sales coming in better than management expectations
at its result in mid-February. Total sales in the quarter were +14%
higher on a year ago, with resales +31% up and new sales flat.
However, contracted new sales stock was up +32% on a year ago,
which is supportive of improving completed sales of new units in
coming quarters.
1
%
24
%
10
%
INDUSTRIALS
8
%

UTILITIES
MATERIALS
3
%
4
%
35
%
HEALTHCARE
INFORMATION
TECHNOLOGY
15
%

FINANCIALS
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
CONSUMER
STAPLES
CASH

33
TOTAL SHAREHOLDER RETURN to 30 April 2025
APRIL'S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2025
DELEGAT GROUP
-11
%
VULCAN STEEL
-10
%
MAINFREIGHT
-10
%
AUCKLAND
INTERNATIONAL
AIRPORT
-8
%
PORT OF TAURANGA
-7
%
FISHER & PAYKEL
HEALTHCARE
19
%
MAINFREIGHT
15
%
SUMMERSET
9
%
INFRATIL
9
%
AUCKLAND
INTERNATIONAL
AIRPORT
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
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(2.3%)(5.3%)+11.8%(1.7%)+5.6%
Adjusted NAV Return(3.2%)(8.3%)+6.0%+3.0%+5.8%
Portfolio Performance
Gross Performance Return(3.1%)(8.4%)+7.6%+4.4%+7.6%
S&P/NZX50G Index(3.0%)(8.4%)(0.5%)+0.1%+2.5%
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 30 April 2025
The remaining portfolio is made up of another 10 stocks and cash.
Mar
2025

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
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
»Kingfish announced a new issue of warrants on
14 March 2025
»The warrant term offer document was sent to all Kingfish
shareholders in late March 2025
»Warrants were allotted to all eligible Kingfish shareholders
on 1 May 2025
»The new warrants (KFLWI) commenced trading on the
NZX Main Board from 2 May 2025
»The Exercise Price of each warrant is $1.35, 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 Kingfish.
»The Exercise Date for the Kingfish warrants is 1 May 2026