Challenging year for Kingfish

Results for announcement to the market
Name of issuer Kingfish Limited
Reporting Period 12 months to 31 March 2023
Previous Reporting Period 12 months to 31 March 2022
Currency NZ$

Amount (000s) Percentage change
Loss from continuing operations ($14,671) -38%
Total revenue loss ($14,671) -38%
Net (loss) from continuing operations ($19,469) -12%
Total net (loss) ($19,469) -12%

Interim/Final Dividend
Amount per Quoted Equity Security $NZ 2.82 cents per share
Imputed amount per Quoted Equity Security $NZ 0.00094588
Record Date 8 June 2023
Dividend Payment Date 23 June 2023
Current period Prior comparable period
Net tangible assets per Quoted Equity Security $1.40 $1.58

A brief explanation of any of the figures above necessary to enable the figures to be understood
The financial statements attached to this report have been audited by PricewaterhouseCoopers and are not subject to a qualification. A copy of the auditor’s report applicable to the financial statements is attached to this announcement.

Authority for this announcement
Name of person authorised to make this announcement W.A. Burns
Contact person for this announcement W.A. Burns
Contact phone number (09) 4840352
Contact email address [email protected]
Date of release through MAP 22 May 2023

Audited financial statements accompany this announcement.



For immediate release:

22 May 2023

Challenging year for Kingfish
•Net loss after tax for year ended 31 March 2022 ($19.5m)
•Total shareholder return * (-18.8%)
•Adjusted NAV return (after expenses, fees and tax) ** (-3.6%)
•Dividend return *** +7.7% (11.64cps)

NZX-listed investment company Kingfish Limited (NZX: KFL) today announced an after-tax net operating loss of $19.5m for the year ended 31 March 2023.

Shareholders will be aware of the challenges experienced by listed equities and the Kingfish portfolio has not been immune to those pressures, recording a loss for the year.
Concerns from post-Covid inflation, rising interest rates, supply chain disruption, coupled with international uncertainty relating to the ongoing war between Russian and the Ukraine have combined to negatively impact the value of the Kingfish portfolio stocks during the period.

The portfolio’s Adjusted NAV return of -3.6% (-2.7% gross performance****) was broadly in line with the S&P/NZX50G benchmark which was down -1.9% for the 12-month period.

Total shareholder return* for the 12 month period was -18.8%, largely driven by the fall in the share price, which moved from an 11% premium to net asset value, to a 6% discount to net asset value over the course of the year.

The lower return delivered by the portfolio activated the management fee rebate (the fulcrum fee*****) which reduced the management fee for the year from 1.25% to 0.75%. The fulcrum fee mechanism is a particular feature of the Fisher-managed listed equity funds which reduces the management fee when actual returns fall below the S&P/NZX Bank Bill 90-day rate.

The directors recognise that the regularity of the tax-effective quarterly dividends are important for many shareholders. In accordance with Kingfish’s quarterly distribution policy (2.0% of average NAV per quarter), the company paid a total of 11.64 cents per share to shareholders during the year ended 31 March 2023. On 22 May 2023, the board declared a dividend of 2.82 cents per share, payable on 23 June 2023 with a record date of 8 June.

Chair Andy Coupe said “Investors have experienced another tough year, with markets being driven by a myriad of factors. However, the directors are encouraged that, despite the difficult environment for listed equities, the majority of the companies within the Kingfish portfolio are delivering solid earnings. This underlying business performance allows us to remain confident in the investment strategy and the medium to longer-term resilience of the portfolio.”

Portfolio Manager Matt Peek noted that “After a tough first half of the financial year, the Kingfish portfolio recovered most of the lost ground, with a gross performance return of +7.1% and Adjusted NAV return of +6.5% in the second half. Over the 2023 financial year the market environment has been challenging. Rising interest rates and concerns over economic activity have seen defensive companies favoured overgrowth companies, which have been key to Kingfish's historical track record of strong performance. Kingfish has performed creditably against this backdrop and its portfolio is well placed moving forward.”

For further information please contact:

Corporate Manager
Kingfish Limited
Tel: (09) 484 0352

* 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.

** Adjusted net asset value return – the net return of the portfolio adjusted for dividends (and other capital management initiatives), and after expenses, fees and tax.

*** Dividend return - is the dividends paid for the period over the average share price for the period.

****Gross performance return – The Manager’s portfolio performance in terms of stock selection, before expenses, fees and tax.

*****The fulcrum fee - The management fee reduces by 0.10% for each 1.0% per annum that the gross return (expressed as a percentage of the gross asset value at the beginning of the financial year) achieved on the portfolio during the financial year is less than the change in the S&P/NZX Bank Bills 90 Day Index over the same period, but subject to a minimum management fee of 0.75% of the average gross asset value for that period.


Non-GAAP Financial Information
The adjusted net asset value, gross performance return and total shareholder return methodologies are described in the Kingfish Non-GAAP Financial Information policy. A copy of the policy is available at http://www.kingfish.co.nz/about-kingfish/kingfish-policies/.


About Kingfish
Kingfish is a listed investment company that invests in growing New Zealand companies. The Kingfish portfolio is managed by Fisher Funds, a specialist investment manager with a track record of successfully investing in growth company shares. The aim of Kingfish is to offer investors competitive returns through capital growth and dividends, and access to a diversified portfolio of investments through a single tax-efficient investment vehicle. Kingfish listed on the NZX Main Board on 31 March 2004 and may invest in companies that are listed on the NZX Main Board, NZX Alternative Market or unlisted companies. /Ends

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