KFL – February 2022 monthly update

1
A WORD FROM THE MANAGER
In January, Kingfish’s gross performance return was down
a disappointing (9.7%) and the adjusted NAV return
was down (9.5%). This compares with the local market
benchmark index return, the S&P/NZX50, which was
down (8.8%).
Market Environment
New Zealand equities fell -8.8% (S&P/NZX 50) in January,
underperforming major global equity markets (MSCI World
-5.3%, S&P 500 -5.2%, S&P/ASX 200 -6.4%). After a flat
year for the market last year, this was a sombre note to
begin 2022. The New Zealand market did not perform
defensively as it usually does, rather every stock except
one in the market index was down for the month. Concerns
about interest rates rising faster than expected impacted
growth and interest rate sensitive ‘defensive’ companies
alike. New Zealand does not have many energy (oil and
gas) or financial companies, which were the two sectors
that outperformed globally, so this also accounts for the
lacklustre relative performance of the local market.
There was little by way of fundamental developments for
our companies, rather Kingfish’s underperformance was
the result of our preference for higher growth companies,
which were out of favour during January.
The Portfolio
Auckland Airport (-7%) announced a delay in the
aeronautical price reset for its next regulatory period.
This is a response to continued uncertainty in the aviation
market and to support airlines during the early phase of the
COVID recovery. The share price performance reflected
the market pricing potential Omicron impacts for Auckland
Airport, on top of the broader market correction.
Our position in Contact Energy (-3%) outperformed our
small position in Meridian (-10%) and the others in the
electricity sector we do not own, benefiting from favourable
hydro conditions boosting its renewable generation and
allowing lower thermal generation costs in the December
half year.
Fisher & Paykel Healthcare (-15%) was not immune from
the sell-off in growth companies. In addition, during the
month the Recovery RS clinical study was published in
the JAMA medical journal, following a pre-print that
was released in August 2021. As foreshadowed by the
pre-print, this study concludes that in COVID patients
continuous positive airway pressure (CPAP) treatment
is superior to standard oxygen, while nasal high flow
oxygen (FPH's primary product suite) is not necessarily as
beneficial in comparison. While we are carefully watching
for any adverse reaction to the study, at this stage we are
not particularly concerned because of the broader context.
Firstly, three other COVID clinical studies were published in
the last 12 months that reach a more favourable conclusion
for nasal high flow oxygen. Secondly, a much wider body
of clinical evidence for acute respiratory illness pre COVID
has built up over many years which have more favourable
conclusions for nasal high flow oxygen.
Our large position in Infratil (-5%) performed more
defensively than the market overall. The company reported
an increase in the independent valuation for Canberra
Data Centres (CDC), its largest asset. The midpoint
of the valuation increased by 15% since the previous
valuation in June 2021. The increase reflects the pipeline
of development and strong customer interest in CDC’s
services. CDC recently announced a move into Melbourne,
and construction of the first phase of development is
expected to commence shortly. This, along with CDC’s
track record and customer demand, gives strong
confidence in the medium-term growth outlook.
Our largest position Mainfreight (-11%) was also down
meaningfully, similar to its global trucking and freight
forwarding transport peers. There was no new news.
After month end, Mainfreight released a strong 43-week
trading update. High profit growth is continuing and
the early outlook for the upcoming 2023 financial year
anticipates a continuation of the favourable trading
conditions.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
MONTHLY UPDATE
February 2022
KFL NAV
$
1.61
$
1. 7 2
Share Price
PREMIUM
1
7. 7
%
as at 31 January 2022
Warrant Price
$
0.06

2
KEY DETAILS
as at 31 January 2022
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand
companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO SIZE
10 – 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
$1.66
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
318m
MARKET CAPITALISATION
$548m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 January 2022
5
%
31
%
INDUSTRIALS
20
%
INFORMATION
TECHNOLOGY
34
%
HEALTH CARE
7
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
The share prices of the technology names in our portfolio,
Pushpay (-18%), and Vista (-13%), were down sharply.
There were no material developments at the companies
to justify the moves, so we’ve put the underperformance
down to investors rotating their positioning away from tech
companies, similar to what we’ve observed in offshore
markets.
Retirement village operator Summerset (-9%) reported
fourth quarter sales volumes, with 234 sales, down 25%
versus last year, due to the impact of COVID lockdowns.
Summerset is seeing growth in waitlists, demonstrating
robust demand for its offering. The first quarter of 2022 is
looking promising, with over half of new deliveries pre-
sold. Despite the solid underlying business performance,
the share price performed poorly in January. In addition to
interest rates and the possible transient impact of Omicron
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
on sales, the broader expectation of a slow-down in the
housing market is impacting investor sentiment towards
the sector. We know that when someone purchases a
retirement village unit, it is typically a needs-based decision
which has nothing to do with the housing market. In
addition, Summerset has a wider than normal ‘buffer’
between local house prices and the price it sells units for,
which will insulate the business from a housing downturn.
We think the stock market is over-emphasising these short-
term headwinds and the value on offer is attractive to long-
term investors.

33
TOTAL SHAREHOLDER RETURN to 31 January 2022
Mar
2004
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2014
Mar
2015
Mar
2013
Mar
2016
Share Price/Total Shareholder Return
$
3.00
$
4.00
$
5.00
$
6.00
$
7.00
$
8.00
$
9.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2021
Mar
2005
JANUARY’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 January 2022
RYMAN HEALTHCARE
−19
%
PUSHPAY
−18
%
FISHER & PAYKEL
HEALTHCARE
−15
%
VISTA GROUP
−13
%
MAINFREIGHT
−11
%
MAINFREIGHT
20
%
FISHER & PAYKEL
HEALTHCARE
16
%
SUMMERSET
15
%
INFRATIL
10
%
AUCKLAND
INTERNATIONAL
AIRPORT
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(12.9%)(13.3%)(8.5%)+20.8%+16.0%
Adjusted NAV Return(9.5%)(11.0%)(4.8%)+15.2%+13.7%
Portfolio Performance
Gross Performance Return(9.7%)(11.0%)(3.6%)+18.2%+16.4%
S&P/NZX50G Index(8.8%)(9.2%)(9.4%)+9.8%+11.0%
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 capital allocation decisions after expenses, fees and tax,
»adjusted NAV return – the net return to an investor after expenses, fees and tax,
»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 http://kingfish.co.nz/about-kingfish/kingfish-policies/
PERFORMANCE to 31 January 2022

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 | Fax: +64 9 489 7139
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
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
10 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 re-
issued 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. Sam Dickie
(Senior Portfolio Manager), Matt
Peek and Michael Bacon (Senior
Investment Analysts) have prime
responsibility for managing the
Kingfish portfolio. Together they
have around 50 years 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 Alistair Ryan
(Chair), Carol Campbell,
Andy Coupe and David
McClatchy.
Warrants
»Kingfish announced a new issue of warrants on 18
October 2021
»Information pertaining to the warrants was mailed/
emailed to shareholders on 1 November 2021
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Kingfish shares held based on the record date of 12
November 2021
»The warrants were allotted to shareholders on 15
November 2021 and listed on the NZX Main Board from
16 November 2021
»The Exercise Price of each warrant is $2.03, 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 new warrants is
18 November 2022