MLN – May 2025 monthly update

1
A WORD FROM THE MANAGER
Marlin’s gross performance return for April was -2.7%, while the
adjusted NAV return was -2.9%. This compared with our global
benchmark, S&P Large Mid Cap/S&P Small Cap Index (50% hedged
to NZD), which was down -1.6%.
Market Environment
April was a volatile month for global equity markets. Weeks of
speculation around tariffs came to a head on Liberation Day on
2nd April. President Trump announced tariffs that were harsher
than expected. Global equities fell 11% in the days following the
announcement and market volatility (fear) spiked to the highest level
since the Covid-19 pandemic. Trump’s tariffs raised concerns of
stagflation (a combination of slowing economic growth and stubbornly
high inflation), a tough environment for equities.
Stocks recovered much of their losses after President Trump
progressively softened the harsh tariff approach over the month. He
announced a 90-day pause in the implementation of reciprocal tariffs
for countries that had not yet adopted retaliatory measures, and global
equities ended the month up 1%.
Another key factor contributing to the stock rally in the latter half of the
month was the strong earnings results delivered by US companies, set
against the backdrop of a decline in investor enthusiasm for the US as
an investment destination. In our portfolio, Meta, Microsoft, Alphabet,
Netflix, Danaher, Boston Scientific and Edwards all delivered results
better than expectations.
Earlier in the month, we took advantage of the extreme fear in markets
and deployed capital in three ways: 1. buying companies partially
impacted by tariffs that had been over-sold (Intuitive Surgical, Meta,
and Gartner); 2. upgrading the quality of the portfolio by buying
companies that are exceptional quality and had been caught up
in the indiscriminate selling (Costco, Hermes) and funding that via
selling lower quality companies (Icon, Greggs); 3. taking profits in
our defensives that had outperformed (United Healthcare, Boston
Scientific) and redeploying that into high quality companies that are
directly impacted by the tariffs (Amazon, KKR, Nvidia).
Portfolio
Netflix (+21%) and Microsoft (+5%) emerged as relative tariff winners
due to their service-based products, which are not impacted by the
newly announced tariffs. Both companies also had good quarterly
earnings during the month, further supporting share price strength.
Netflix reported revenue and margins ahead of expectations. New
subscriber growth continues as they released desirable new content
(such as Adolescence and Back in Action) and are rolling-out new
subscription tiers to appeal to a wider range of customers, which has
increased its growth runway.
Microsoft’s earnings result was led by Azure, its cloud computing
platform, growing ahead of expectations at 35%. Both AI and non-AI
cloud revenue growth on Azure was strong, and Azure continues to
take market share in cloud computing. Microsoft will continue to be a
beneficiary as more AI-related software and workloads are adopted by
enterprises on top of its core software.
Our medical device names (Intuitive Surgical +4%, Dexcom +5%,
Edwards Lifesciences +4% and Boston Scientific +2%) also
benefited from the shift to more defensive and tariff winners, which
was proven out in earnings reports during the month.
Amazon (-3%) and Floor & Décor (-11%) detracted from fund
performance given their exposure to tariffs and the flow on effect of
a potentially weaker consumer. Both companies have diverse global
supply chains, flexibility to absorb proposed tariff impacts and are in a
better position to navigate tariffs than competitors.
Floor and Décor has reduced its China-sourced products from 50% in
2018 to 15% currently, and the company expects this to decrease to
below 5% by the end of 2025. Floor and Décor sources products from
240 different suppliers across 26 countries, with the largest being the
US at 27%. The company also has experience successfully managing
previous tariffs through pricing and supplier negotiations. Floor &
Décor has already seen competitors increase prices by up to 50%,
which could potentially widen Floor & Décor’s price gap and enhance
its value proposition.
Amazon’s eCommerce business includes over 2 million sellers and
hundreds of millions of different products. Amazon’s very wide range
of products coupled with low-cost and fast delivery means it is well
placed to weather challenging conditions better than others and offer
market leading service to customers.
UnitedHealth (-21%) was a defensive haven during the tariff sell-off,
outperforming the S&P by 20% at one point. However, a rare earnings
miss caused a 30% decline, shaking investors’ confidence in this
historically stable business. US health insurers have faced challenges
as reimbursement pressure in government programs and rising
healthcare costs squeezed profit margins. UnitedHealth had navigated
this environment better than peers, maintaining margins while taking
market share.
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).
MONTHLY UPDATE
May 2025
$
0.90
SHARE PRICE
as at 30 April 2025
WARRANT PRICE
$
0.00
PREMIUM
1
0.7
%

MLN NAV
$
0.8 9

2
KEY DETAILS
as at 30 April 2025
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
$0.96
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
221m
MARKET CAPITALISATION
$199m
GEARING
None (maximum permitted 20% of
gross asset value)
Icon (-13%) and its clinical research peers have faced challenges
in recent quarters as the large pharma and biotech customers cut
research and development spending post Covid-19 and amidst
increasing interest rates. This backdrop was expected to improve
this year, but the combination of high interest rates, macroeconomic
and tariff uncertainty; and questions over the Trump administration’s
pharma regulation policies has seen ongoing hesitancy in clinical trial
investment.
New portfolio additions
Costco is a leading global warehouse club, offering high-quality
products in bulk at low prices. The company is the third largest retailer
in the world by revenue and operates more than 900 warehouses.
Costco serves 137 million members by providing a wide range of
goods—from groceries and electronics to household items. Costco’s
ability to leverage its scale to consistently deliver the lowest prices
creates a strong moat. This, combined with its customer-centric
SECTOR SPLIT
as at 30 April 2025
30
%
9
%
18
%

FINANCIALS
23
%
GEOGRAPHICAL SPLIT
as at 30 April 2025
6
%
WESTERN
EUROPE
81
%
NORTH
AMERICA
17
%
13
%

ASIA PACIFIC
HEALTH CARE
COMMUNICATION
SERVICES
3
%

CASH &
DERIVATIVES
INFORMATION
TECHNOLOGY
CONSUMER
DISCRETIONARY
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
culture has led to sales per square foot double that of its nearest
competitor. Costco’s has substantial opportunity to expand its
warehouse footprint both in the U.S. and internationally.
KKR is a leading alternative asset franchise benefiting from the
structural growth in alternative assets as pension funds, sovereign
wealth funds and high-net-worth individuals increase their allocations
to private equity and alternatives. While asset management is a
competitive industry, KKR has a wide moat given its strong track
record of returns and the stickiness of assets under management.
KKR’s brand and track record helps with fundraising and attracting
investment talent.

3
APRIL’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in local currency
NETFLIX
+21
%
KKR
+21
%
FLOOR & DÉCOR
-11
%
UNITED HEALTH
-13
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2025
AMAZON
8
%
MICROSOFT
7
%
MASTERCARD
6
%
ASML HOLDINGS
5
%
DANAHER
5
%
The remaining portfolio is made up of another 20 stocks and cash.
PERFORMANCE to 30 April 2025
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return
+1.1%(7.4%)(0.6%)(0.3%)+8.9%
Adjusted NAV Return(2.9%)(13.7%)(4.3%)+5.0%+6.9%
Portfolio Performance
Gross Performance Return (2.7%)(13.5%)(1.7%)+7.4%+9.9%
Benchmark Index^(1.6%)(4.3%)+11.7%+10.3%+13.0%
^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.
ICON
-21
%
TOTAL SHAREHOLDER RETURN to 30 April 2025
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
Nov
2024

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 were allotted to all eligible Marlin shareholders
on 16 May 2024
»The warrants (MLNWG) commence trading on the NZX
Main Board from 17 May 2024
»The Exercise Price of each warrant is $0.96
»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.