MLN – May 2023 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for April was up 1.7%,
while the adjusted NAV return was up 1.6%. This compared
with our global benchmark, S&P Large Mid Cap/S&P Small
Cap Index (50% hedged to NZD), which was up 1.3%.
In April, global equities gained +1.6%. US and European
equities were up +1.5% and +2.6%, respectively. Emerging
market equities, on the other hand, were down -1.3%.
The US reporting season is almost 60% of the way complete.
So far, 67% of companies reporting have beaten revenue
expectations and 80% have beaten earnings expectations.
The European reporting season is around 40% of the way
through. So far, 66% of companies reporting have beaten
revenue expectations, while only 63% have beaten earnings
expectations.
Our portfolio is 53% of the way through earnings season. So
far, 90% of companies have beaten revenue expectations and
90% have beaten earnings expectations. As always, results
are backwards looking so guidance is crucial. 80% of our
portfolio companies have either raised guidance or not guided
and consensus has upgraded year ahead earnings estimates.
Portfolio
Alibaba (-18%) and Tencent (-11%) declined alongside
the wider Chinese market, reversing gains made in the prior
month on the back of Tencent’s strong results and Alibaba’s
business restructure announcement. There was no significant
news for these two companies in the month.
We added to our Dollar General (+6%) and Dollar Tree
(+7%) positions in the month. These US discount retailers
have wide moats, which will continue to widen as they
expand their store footprint and bring value to US consumers.
Dollar General and Dollar Tree stock a variety of consumable
and discretionary items at affordable sub-$10 price points
that are on par with a mass merchant like Walmart, and they
are 20%~40% cheaper than grocery and drug stores.
Edwards Lifesciences (+6%). The healthcare industry
continues to recover from the combination of COVID
headwinds and hospital staffing shortages, with surgical
procedures for medical device companies coming in well
ahead of expectations for the first quarter. Following several
quarters of lower growth in its core TAVR franchise, Edward’s
returned to its historic double-digit growth rate.
Icon (-10%), the clinical research outsourcing (CRO)
company, had a weak month. Sentiment continues to sour
on its early-stage biotech clients which make up around 15%
of company revenue. Funding for these early-stage biotech
companies has declined from the high levels seen during
the COVID years. This is starting to result in delays in small
biotech projects, as clients conserve cash and prioritise
projects. Management believe these concerns are overblown.
Any headwinds will be limited, while the long-term growth
story remains intact. Biotech funding has decreased but it is
still consistent with pre-COVID levels. Client’s R&D budgets
in the remaining 85% of Icon’s revenue base continue to
grow. Icon is well positioned to increase its share of industry
outsourcing spend following its 2021 merger with PRA Health
Sciences, as pharmaceutical companies consolidate their
R&D spend to the larger CRO’s such as Icon.
Mastercard (+5%) beat earnings expectations during the
month. The company lifted its full year guidance for 2023.
Consumer spending has remained resilient despite the
current economic uncertainty, high inflation and high interest
rate environment. Dollar volumes grew 15% in the core
payments business. The company is winning new customers
and selling additional value-added services, such as analytics
and fraud detection, which grew 21%. MA’s cross-border
payments business grew 35% in the quarter, continuing to
show strength as economies continue to reopen and travel
resumes at a more normalised level.
1
Share Price Discount 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).
MONTHLY UPDATE
May 2023
$
0.87
Share Price
MLN NAVDISCOUNT
1
$
0.88 0.9
%

as at 30 April 2023
Warrant Price
$
0.01

2
KEY DETAILS
as at 30 April 2023
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
$1.10
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
205m
MARKET CAPITALISATION
$178m
GEARING
None (maximum permitted 20% of
gross asset value)
Meta (+13%) reported strong earnings. User growth,
revenue and earnings exceeded market expectations. Meta
also provided better-than-expected revenue guidance for
the following quarter and once again lowered its expense
guidance for the full year. Compared to 6 months ago, Meta
has reduced its expense guidance by 11%, at the same
time as revenue is coming in stronger than expected. This
has driven consensus operating profit forecasts 40% higher
SECTOR SPLIT
as at 30 April 2023
24
%
CONSUMER
DISCRETIONARY
10
%
16
%

FINANCIALS
22
%
INFORMATION
TECHNOLOGY
GEOGRAPHICAL SPLIT
as at 30 April 2023
7
%
WEST
EUROPE
78
%
NORTH
AMERICA
5
%

CASH &
DERIVATIVES
16
%
10
%

ASIA
5
%
CASH &
DERIVATIVES
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
in the past 3 months. Artificial intelligence (AI) was a key
topic, which management credits for driving greater user
engagement and advertising efficiency.
COMMUNICATION
SERVICES
HEALTH CARE
7
%

CONSUMER
STAPLES

3
APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
META PLATFORMS
+13
%
GARTNER
-7
%
ICON
-10
%
ALIBABA
GROUP
-11
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2023
AMAZON
8
%
META PLATFORMS
8
%
ALPHABET
8
%
FLOOR & DECOR
6
%
BOSTON
SCIENTIFIC
6
%
The remaining portfolio is made up of another 14 stocks and cash.
PERFORMANCE to 30 April 2023
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+2.2%(4.1%)(18.9%)+7.9%+11.0%
Adjusted NAV Return+1.6%+0.7%(3.1%)+5.4%+7.5%
Portfolio Performance
Gross Performance Return +1.7%+0.7%(1.4%)+8.5%+10.6%
Benchmark Index^+1.3%+0.8%+2.7%+12.1%+6.9%
^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 http://marlin.co.nz/about-marlin/marlin-policies/
TENCENT
-18
%
TOTAL SHAREHOLDER RETURN to 30 April 2023
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

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
(MLNWF) on 18 October 2022
»Information pertaining to the warrants was
mailed/emailed to all shareholders on 25 October
2022
»The warrants were 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 2 November 2022
»The warrants were allotted to shareholders on
3 November 2022 and listed on the NZX Main
Board from 4 November 2022
»The Exercise Price of each warrant is $0.99,
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 warrants is 10
November 2023

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 Lily Zhuang
and Daniel Moser (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.