MLN – November 2024 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for October was down -1.2%, while
the adjusted NAV return was down -1.4%. This compared with our global
benchmark, S&P Large Mid Cap/S&P Small Cap Index (50% hedged to
NZD), which was up +1.0%.
A relatively unremarkable month of market returns masked several
moving parts underneath, with Q3 reporting seasoning fully underway;
and a sharp reversal in interest rate cut expectations in the US. The S&P
Global LargeMidCap index was down -1.6% in local currency, having
basically been flat all month. It was a similar story in Europe (-2.9%) and
Japan (+0.5%). China fell 6% following the strong bounce in September
as announced stimulus failed to sustain the rally. The US dollar rallied 6%
against the NZ dollar in the month.
At the start of the month the market was pricing over four Fed rate cuts
by January 2025, however this fell to two as Jerome Powell took a more
hawkish tone during the month; suggesting that while more interest rate
cuts are in the pipeline, they would occur at a measured pace intended
to support a still-healthy economy.
Earnings season is underway – with over half the S&P 500 having
reported, including many of our portfolio companies. While 80% of
companies reporting by 30 October exceeded expectations, the average
positive performance surprise was smaller than in previous periods, and
some companies faced revenue downgrades for Q4.
Portfolio
Netflix (+7%) reported another quarter of new subscriber growth,
reaching 283m global users. Netflix saw continued momentum in its ad-
supported membership tier which grew 35% in the quarter; and raised
prices in several markets including Italy and Spain. Netflix continues to
invest in content, even as some competitors are cutting back, which sets
them up well for continued growth over the next few years.
Our big-tech companies had mixed performance during earnings,
despite all showing continued strength in digital advertising and cloud,
driven by the progress made incorporating AI into their operations and
rolling out new AI features for customers. Despite fears of AI disrupting
the core search product, Alphabet (+3%) continues to successfully
integrate AI into search, driving increased engagement and user
satisfaction. Meta (-1%) fell on earnings despite increased revenue from
its AI-powered ad targeting and content recommendation engine, with
investors wary of Meta’s increasing investment in its AI and metaverse
projects. Amazon (+0%) and Microsoft (-6%) both saw very strong
AI growth in their cloud businesses, but highlighted issues of ramping
capacity fast enough to meet the strong demand.
Microsoft is expecting cloud growth to slow next quarter but to
reaccelerate in the first half of 2025 as new capacity comes online.
This strong end demand driving increased investment in AI from the
big-tech companies is a tailwind for recent addition Nvidia (+9%), which
has 85% market share in the semiconductor chips used to run these AI
models.
Our medical device companies mostly outperformed for the month,
including Intuitive Surgical (+3%), Edwards Lifesciences (+2%) and
Dexcom (+5%). Intuitive, the global leader in surgical robots, continued
its strong performance YTD, beating market expectations for procedure
growth and new robotic placements. With the launch of its latest surgical
robot only beginning, we anticipate strong growth over the next few
years, but this is somewhat reflected in the stock price give performance
YTD. Following its earnings miss last quarter on several execution
missteps, Dexcom has shown good progress in turning this around,
improving sales force execution and re-engaging with key customers;
while Edwards announced positive results for several key clinical trials
which are expected to expand its addressable patient pool.
Icon (-23%) and Danaher (-12%) are both seeing a slower than
expected recovery in biotech R&D spending following several strong
years post COVID. While biotech funding has improved this year, this
has not yet translated to revenue as these customers have been hesitant
to start new drug development projects. Icon is also facing near-term
pressure from several large pharma customers such a Pfizer that have
made bigger than expected cuts to their clinical research programs as
they look to rationalise and reduce costs. While Icon continues to gain
share within its large pharma customer base, this has not been enough
to offset these headwinds and revenue growth expectations 2024 and
2025 have been reduced. We believe these are temporary headwinds
and industry growth will reaccelerate over the course of next year as
these pharma and biotech companies continue to invest in innovative
new treatments.
ASML (-19%) fell following an unexpected reduction to its 2025
guidance as the company faces several near-term headwinds. ASML
makes the lithography machines used to manufacture semiconductor
chips used everything from mobiles, PC, cars and more recently for AI
chips. While demand for artificial intelligence remained strong, the other
end markets are taking longer than expected to recover, forcing chip
makers to hold back spending on semiconductor-making machinery.
Two of ASMLs largest customers Samsung and Intel, have both delayed
the completion of large chip manufacturing facilities given weak demand
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
November 2024
$
0.92
SHARE PRICE
as at 31 October 2024
WARRANT PRICE
$
0.02
DISCOUNT
1
5.1
%

MLN NAV
$
0.97

2
KEY DETAILS
as at 31 October 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
$1.00
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
218m
MARKET CAPITALISATION
$201m
GEARING
None (maximum permitted 20% of
gross asset value)
and ongoing competition from the leading chip manufacturer TSMC.
We recognise that ASML is a cyclical business, and expect the current
headwinds to be largely temporary, with the longer-term demand for
ASML’s advanced lithography tools still intact.
Floor and Décor (-17%) fell as mortgage rates reversed the recent
trend of declines. Higher mortgage rates have put pressure on both
existing home sales and renovations, key drivers of flooring demand.
Floor & Décor’s latest earnings report was promising despite this tough
backdrop. While sales were slightly behind expectations, the US west
coast region is starting to show promise with same-store-sales nearing
a return to growth. Margins and earnings came in better than expected
as the company manages expenses tightly through this challenging
operating environment. Once the industry backdrop improves, Floor
& Décor should be in a position to take increasing market share as
competitors have had to retreat or have gone out of business, leaving
less competition for Floor & Décor.
SECTOR SPLIT
as at 31 October 2024
30
%
11
%
19
%

FINANCIALS
21
%
GEOGRAPHICAL SPLIT
as at 31 October 2024
5
%
WESTERN
EUROPE
80
%
NORTH
AMERICA
18
%
15
%

ASIA PACIFIC
HEALTH CARE
COMMUNICATION
SERVICES
1
%

CASH &
DERIVATIVES
INFORMATION
TECHNOLOGY
CONSUMER
DISCRETIONARY
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Portfolio activity
We added a new stock the portfolio during the month: Zoetis
Zoetis is a previous portfolio holding that we exited in August 2020 on
a combination of valuation and our thesis at the time largely playing out.
Zoetis is the leader in animal health, owning many of the leading brands
of drugs used to treat cats, dogs and livestock. Since spinning out of
Pfizer in 2013, Zoetis has consistently gained market share, and with
a strong pipeline of innovative new drugs we expect this to continue.
Zoetis has underperformed other quality-growth stocks given concerns
around a slow-down in vet visits, and we took the opportunity to add it
back to the portfolio.

3
OCTOBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
(in local currency) during the month
ICON
-23
%
ASML
-19
%
FLOOR & DÉCOR
HOLDINGS
-17
%
DANAHER
-12
%
5 LARGEST PORTFOLIO POSITIONS as at 31 October 2024
AMAZON
9
%
MICROSOFT
7
%
MASTERCARD
7
%
ALPHABET
7
%
ASML
5
%
The remaining portfolio is made up of another 18 stocks and cash.
PERFORMANCE to 31 October 2024
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(0.1%)(4.4%)+12.8%(9.6%)+8.7%
Adjusted NAV Return(1.4%)(1.7%)+21.3%(0.6%)+8.4%
Portfolio Performance
Gross Performance Return (1.2%)(1.1%)+25.2%+1.3%+11.4%
Benchmark Index^+1.0%+1.6%+29.7%+6.7%+10.3%
^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.
GREGGS
-12
%
TOTAL SHAREHOLDER RETURN to 31 October 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
»Marlin announced a new issue of warrants on 29 April
2024
»The warrant term offer document was sent to all Marlin
shareholders in early May 2024
»Warrants were allotted to all eligible Marlin shareholders
on 16 May 2024
»The new warrants (MLNWG) commence trading on the
NZX Main Board from 17 May 2024
»The Exercise Price of each warrant is $1.04, 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 16 May 2025

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 and Charles Barty
(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.