MLN – May 2026 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for April was +4.0%, while the adjusted
NAV return was +3.3%. This compared with our global benchmark, S&P
Large Mid Cap/S&P Small Cap Index (50% hedged to NZD), which was
+7.8%.
Market Environment
Global share markets reached all-time highs despite geopolitical tensions
pushing oil prices back above $115 per barrel late in the month — the
highest in four years.
Markets were buoyed by a strong US earnings season, with 79% of
S&P 500 companies beating expectations so far, alongside renewed
enthusiasm around artificial intelligence (AI). Major US technology firms
delivered strong results and raised capital expenditure plans, boosting the
entire semiconductor supply chain from Taiwan to South Korea.
Emerging markets led the way (MSCI EM Index +15%), with South Korea’s
KOSPI surging +31%, driven by AI-linked semiconductor exporters
Samsung and SK Hynix. The S&P 500 gained +10%, while Europe lagged
at a more modest +5%, held back by weakening economic data and
higher energy exposure.
Portfolio
Amazon (+27%) was the largest contributor to performance for the
month. While its core retail business grew ahead of expectations, the
main driver was its cloud business Amazon Web Services (AWS). Cloud
revenue reaccelerated in the quarter, with continued investment in new
capacity to meet high demand for both AI and traditional cloud services.
Amazon’s proprietary chip strategy (including Trainium and Graviton)
positions it as one of the few players offering a full-stack AI solution,
from silicon to inference to the application layer. Revenue from these
chips has already reached a $20 billion run-rate. Amazon’s profit margin
strength was particularly impressive, beating expectations across all
three business segments. This was a common theme across big tech
this earnings season. Alphabet (+34%), Amazon, and Meta (+7%) are
all demonstrating the ability to invest aggressively in AI while still growing
earnings - something the market had previously questioned.
Keyence (+30%), a recent addition to the portfolio, reflects the generally
positive contribution from newer positions over the past 12 months or
so. The company began to see a recovery in some of its end markets,
including the automotive sector, following several years of cyclical
weakness. This suggests the downcycle may be turning, which should
support a rebound in earnings. Disclosure and willingness to return capital
to shareholders has been an area Keyence has lagged other Japanese
companies. However, in April, the company made a step forward with
increased reporting disclosure and, for the first time, a willingness to
pursue share buybacks.
Our underweight to semiconductors was a material detractor as investors
rotated into higher-beta AI beneficiaries, while quality and defensive
sectors such as consumer staples and healthcare underperformed. The
iShares Semiconductor ETF (SOXX +40%) saw its strongest monthly return
in 25 years, driven by AI-exposed names including Intel (+114%), Micron
Technology (+53%) and SanDisk (+73%), reflecting surging demand for AI
and memory chips. Current valuations embed a long runway of sustained
demand, leaving limited margin for error if spending is delayed, particularly
given that semiconductors—especially memory manufacturers—have
historically been highly cyclical, with recurring boom-bust inventory
cycles. While we remain constructive on the structural AI build-out and
AI demand, we prefer exposure to hyper-scalers such as Amazon and
Alphabet; AI beneficiaries including Meta and Tencent; and wide-moat
“picks-and-shovel” companies such as ASML (+9%), Nvidia (+14%) and
TSMC
2
(+17%).
Our healthcare holdings lagged the broader market this month, partly due
to the rotation out of quality and defensive sectors into higher-momentum
areas of the market. Investor concerns have grown around slowing
medical device growth as procedure volumes normalise following the
clearance of post-COVID backlogs and hospitals tighten capital budgets
amid an uncertain macro backdrop. That sentiment, however, contrasts
with conditions on the ground. Procedure volumes remain resilient across
major categories, with hospital capital budgets and order books holding
up well, particularly in robotics. Several of our healthcare holdings such
as Edwards Lifesciences (+4%) and Intuitive Surgical (-1%), delivered
accelerating revenue growth in the most recent quarter. Boston Scientific
(-8%) faces a period of consolidation following several years of strong
growth and market share gains. While first-quarter growth of 9% was
respectable, albeit below recent high-standards, the company reduced
full-year guidance as it navigates several near-term headwinds. Importantly,
Boston Scientific retains strong positions across multiple end markets,
with a pipeline of new products and expected regulatory approvals in
2027 supporting a medium-term growth reacceleration. Danaher’s (-6%)
underperformance reflects investor disappointment at the slower-than-
expected recovery in spending on new drug development from biopharma
customers. Forward-looking indicators, including biotech funding levels
and pharma R&D investment, give us confidence that a recovery is a
matter of timing. We have been reducing our healthcare exposure over
the past twelve months, while maintaining conviction in the most attractive
opportunities within the sector. These remain high-quality companies
with dominant positions in end markets where demand for innovative
treatments that improve outcomes and lower system costs—such as
Edwards’ minimally invasive heart valves and Intuitive Surgical’s robotic
platforms—continues to grow. The disconnect between the underlying
fundamentals and weak investor sentiment has compressed sector
valuations to near 30-year lows relative to the broader market, creating
a compelling opportunity for patient investors focused on long-term
fundamentals.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expenses, fees and tax, to four decimal places).
2
Taiwan Semiconductor Manufacturing Company
MONTHLY UPDATE
May 2026
as at 30 April 2026
SHARE PRICE
$
0.84
MLN NAV
$
0.84
WARRANT PRICE
$
0.0 2
PREMIUM
1
1. 2
%

Floor & Décor (-5%) and Mastercard (+1%) present attractive
opportunities, with both facing temporary Middle East-related headwinds
while underlying fundamentals remain intact. Floor & Decor continues
to be affected by weak existing home sales—a key driver of flooring
demand—with higher oil prices further dampening consumer confidence
and discretionary spending. Mastercard is another example of a quality
company underperforming as reduced travel and tourism related to the
conflict has impacted higher-margin cross-border volumes. We view these
pressures as cyclical rather than structural.
Tencent (-3%) underperformed alongside the wider China tech sector.
The industry is under pressure from renewed macro weakness, including
subdued consumer sentiment and volatile geopolitics, but Tencent’s
performance increasingly resembles that of US big tech, with investor
scepticism around returns on heavy AI investment. Tencent is investing
heavily across foundation models, cloud infrastructure, and AI integration
into its broader ecosystem (including social media, gaming, advertising),
compressing near-term margins. With its dominant WeChat app used by
over 1.4 billion users, Tencent is well positioned to benefit from AI; and
with valuations near 20-year lows, the long-term investment opportunity is
increasingly compelling.
New portfolio additions/ exits
No additions or exits.
2
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
KEY DETAILS
as at 30 April 2026
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
$0.87
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
229m
MARKET CAPITALISATION
$193m
GEARING
None (maximum permitted 20% of
gross asset value)
SECTOR SPLIT
as at 30 April 2026
GEOGRAPHICAL SPLIT
as at 30 April 2026
Information Technology23%
Health Care20%
Consumer Discretionary19%
Communication Services13%
Financials13%
Industrial8%
Cash & Derivatives4%
North America78%
Asia Pacific10%
Western Europe7%
South & Central America4%
Central Asia1%

3
APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in local currency
ALPHABET
+34
%
KEYENCE
CORPORATION
+30
%
AMAZON
+27
%
NVIDIA
+17
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2026
AMAZON
7
%
MICROSOFT
7
%
META PLATFORMS
6
%
MASTERCARD
5
%
TENCENT
5
%
The remaining portfolio is made up of another 25 stocks and cash.
PERFORMANCE to 30 April 2026
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.5%(5.6%)+2.6%+7.8%(2.9%)
Adjusted NAV Return+3.3%(5.6%)+2.0%+6.8%(0.0%)
Portfolio Performance
Gross Performance Return +4.0%(5.8%)+4.0%+9.3%+1.9%
Benchmark Index^+7.8%+5.7%+33.4%+19.1%+11.0%
^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.
TAIWAN
SEMICONDUCTOR
MANUFACTURING
COMPANY
+14
%
TOTAL SHAREHOLDER RETURN to 30 April 2026
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
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2019
Nov
2021
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2023
Nov
2024
Nov
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 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
16 February 2026
»The warrant term offer document was sent to all Marlin
shareholders in late February 2026
»Warrants were allotted to all eligible Marlin shareholders
on 23 April 2026
»The new warrants (MLNWH) commenced trading on the
NZX Main Board from 24 April 2026
»The Exercise Price of each warrant is $0.87, 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 Marlin
»The Exercise Date for the Marlin warrants is 23 April 2027

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 Charles
Barty (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), David
McClatchy, Fiona Oliver and
Dan Coman.