Kingfish investment portfolio shows 5% return
18 April 2005
Kingfish investment portfolio shows 5% return in March quarter
The Directors of investment company Kingfish Limited are delighted with the 5.1% increase in Net Asset Value per share (NAV) achieved in the March quarter. In its first twelve months, the company’s NAV has increased 33.2% from the $0.9684 raised in the IPO (after issue expenses) to $1.2895 as at 31 March 2005.
“The increase in the value of the company was substantially ahead of the benchmark, which is essentially cash plus 7% per annum, reflecting the successful efforts of Fisher Funds, the manager of the Kingfish assets.” said Kingfish Chairman Rob Challinor.
Mr Challinor added “As at 31 March 2005 the combined market value of Kingfish shares and warrants for those investors who participated in the IPO was $1.23 compared with the issue price of $1.00, representing a 23% gain over the year”.
As at 31 March, there were 16 stock holdings overall which made up just over 95% of total assets. Core stock holdings are: Freightways, Metlifecare, Waste Management, Pumpkin Patch (which together account for approximately 50% of the investment portfolio) as well as Mainfreight, Michael Hill, Ryman Healthcare and Turners Auctions. The Kingfish Nursery portfolio includes the following stocks: Comvita, Kidicorp, Just Water, Steel & Tube, NZ Exchange, Pod, Turners and Growers and Cadmus Technology. (Kingfish Nursery is a subsidiary of Kingfish Limited which owns shares in companies that have not yet met all the Manager’s investment criteria in order to become a core holding).
Carmel Fisher, Managing Director of Fisher Funds, stated that “The Kingfish portfolio performed very well in the quarter with more than 100% of the increase in the NAV coming from sizeable gains in the share prices of four stocks in particular, Waste Management +8%, Metlifecare +13%, Mainfreight +18% and Pumpkin Patch +19%. Good dividends were also received from Waste Management, Pumpkin Patch and Freightways. The only changes were to exit the holding in The Briscoe Group, which at the time comprised just 2% of assets, as we remain disappointed with the company’s strategy. We added a small holding in Turners and Growers to Kingfish Nursery. Share price falls in Kidicorp, Freightways and Turners Auctions took 1% off the return for the quarter.
Fisher Funds has advised the Kingfish Board that it is very comfortable with the current portfolio composition although it continues to look for suitable new investment opportunities.
Notwithstanding Fisher Funds excellent investment performance record and as noted in the December release, the Board is of the view that the significant broader NZ equity market gains enjoyed over the past two years are unlikely to continue at similar rates and would therefore anticipate more modest returns in coming periods.
The company expects to announce its maiden full year result later this month and will mail the 2005 annual report to shareholders in early May. Investors are encouraged to register for regular email updates on the Kingfish Limited web site, www.kingfishlimited.co.nz.
Overview of Kingfish Limited
Kingfish Limited is a listed investment company investing in small New Zealand companies. The investment portfolio is managed by Fisher Funds Management Limited, a specialist New Zealand investment manager with a track record of successfully investing in smaller company shares. Kingfish began operating in March 2004 when it received subscriptions for 58.5m shares at $1 per share. For each share issued, subscribers received one option (warrant) to subscribe for a share at $1, exercisable at the end of either March 2006, 2007 or 2008.