MLN – February 2024 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for January was up 3.5%, while
the adjusted NAV return was up 3.3%. This compared with our
global benchmark, S&P Large Mid Cap/S&P Small Cap Index
(50% hedged to NZD), which was up 0.4%.
It was a more sluggish start to the month as the multi-month
tailwind from sharply falling interest rates paused and was used
as an excuse for profit taking by the market after the bull run in
equities. However, later in the month, more optimism around a
‘soft landing’ gained traction, as positive economic data released
during the month pointed to ongoing resilience in the US economy.
US Q4 GDP of 3.3% was well above consensus expectations.
Finally, the month ended on a slightly weaker note as the US
Federal Reserve downplayed the chances of a March interest rate
cut (the market had been pricing in a 40% chance of a cut).
Japanese equities led the way (+7.8% in local currency), with US
(+1.7%) and Europe (2.1%) also positive for the month. Emerging
markets fell 4.6%, with China down 6%, as the domestic economy
continues to struggle. Global growth stocks outperformed value
stocks, and large-cap stocks outperformed small-caps.
Portfolio news
Netflix (+16%) had a strong Q4 earnings report. The company
reported much better than expected net subscriber additions
(its 2nd best quarter ever) which was its sixth straight quarter
of increased subscribers. The better-than-expected subscriber
additions were partly driven by the Netflix’s new paid sharing
option - Netflix’s solution to letting people outside of the primary
household still use the account. Operating income and margins
also performed better than expected as the company has been
rationalising spend to focus on profitable growth during the last
year, similar to many other technology companies.
Meta Platforms (+10%) continued the strong run it had
throughout 2023. Some digital advertising industry channel checks
during the month came out positive which helped with sentiment
in the stock.
Boston Scientific (+9%), a leading medical device company,
had several positive announcements this month. Firstly, it received
FDA approval for its Farapulse system used to treat paroxysmal
atrial fibrillation. This disease impacts millions globally, and Boston
Scientific now has a market leading treatment. The company also
announced the acquisition of Axonics for $3.7bn, further bolstering
its urology segment. At the end of the month, Q4 earnings came
in well ahead of expectations driven by strong performance across
all its medical device segments. This performance is expected to
continue into 2024, with the company guiding to continued above
market growth.
Icon (-8%) fell alongside clinical research peers following company
commentary at a healthcare conference earlier this month.
Several companies presented a more tempered view of near-term
demand for clinical research services given ongoing concerns
around biotech funding and large biopharma customer R&D
spend. Despite these nearer-term headwinds, global biopharma
R&D spend, and outsourcing of this spend are both expected to
continue growing over the long-term, and Icon is well positioned
to gain share in the outsourced clinical research market.
Floor and Décor (-10%) had a tough month as key housing
indicators weakened. US existing home sales declined 1% in
December to lows not seen since the GFC. The decline in existing
home sales has been driven by many homeowners locking in
very low interest rates on their mortgage for 30 years during the
pandemic. This is hampering existing home sales as homeowners
do not want to refinance to a higher rate to buy a new home.
Floor & Décor benefits when existing home sales are increasing as
homeowners are likely to replace flooring in their home before they
sell or after they buy.
Portfolio activity
No new additions or exits during the month.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
February 2024
$
0.97
Share Price
DISCOUNT
1
0.5
%

as at 31 January 2024
MLN NAV
$
0.97
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 31 January 2024
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
$1.04
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
214m
MARKET CAPITALISATION
$207m
GEARING
None (maximum permitted 20% of
gross asset value)
SECTOR SPLIT
as at 31 January 2024
28
%
9
%
18
%

FINANCIALS
20
%
GEOGRAPHICAL SPLIT
as at 31 January 2024
4
%
WEST
EUROPE
83
%
NORTH
AMERICA
3
%

CASH &
DERIVATIVES
18
%
10
%

ASIA
3
%
CASH &
DERIVATIVES
HEALTH CARE
INFORMATION
TECHNOLOGY
4
%

CONSUMER
STAPLES
CONSUMER
DISCRETIONARY
COMMUNICATION
SERVICES

3
JANUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
(in local currency) during the month
NETFLIX INC
+16
%
INTUITIVE SURGICAL
INC
+12
%
META PLATFORMS
INC
+10
%
FLOOR & DÉCOR
+9
%
5 LARGEST PORTFOLIO POSITIONS as at 31 January 2024
AMAZON
8
%
MICROSOFT
7
%
ALPHABET
6
%
META PLATFORMS
6
%
SALESFORCE
6
%
The remaining portfolio is made up of another 16 stocks and cash.
PERFORMANCE to 31 January 2024
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+3.2%+11.3%+13.3%(1.7%)+12.6%
Adjusted NAV Return+3.3%+14.4%+18.4%+4.0%+11.0%
Portfolio Performance
Gross Performance Return +3.5%+15.4%+20.5%+6.0%+13.9%
Benchmark Index^+0.4%+11.9%+11.8%+7.1%+9.8%
^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.
BOSTON SCIENTIFIC
CORP
-10
%
TOTAL SHAREHOLDER RETURN to 31 January 2024
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
Nov
2021
Nov
2023

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
»Warrants put Marlin 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 Marlin at a fixed
price on a fixed date
»There are currently no Marlin warrants on issue

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 Daniel Moser
(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), Carol Campbell,
David McClatchy and Fiona
Oliver.