Shareholders Thursday 1 November 2012 Welcome to the 5 th Marlin - - PowerPoint PPT Presentation

5th Annual Meeting of Shareholders

Thursday 1 November 2012

Welcome to the 5th Marlin Global Annual Meeting of Shareholders

• Duly convened
• Quorum

Preliminary Matters

• 2011 Meeting Minutes
• 2012 Annual Report
• Voting by way of poll
• Registration

Agenda

• Chairman’s Overview
• Manager’s Review
• Questions relating to the Chairman’s and

Manager’s presentations

• Annual Meeting Resolutions

– Election of directors – Auditor remuneration – Elevation proposal

• Voting and Conclusion

Please note

The information given during this presentation is class advice and is not to be taken as ‘personalised financial advice’ A disclosure statement is available upon request

Introduction

Board of Directors

• Alistair Ryan

Chairman

• Carmel Fisher

Director

• Carol Campbell

Director

Senior Portfolio Manager

• Roger Garrett

Senior Investment Analyst

• Manuel Greenland

Chief Financial Officer

• Ben Doshi

Audited Proxy Count

Resolution For Against Discretionary Total Abstain Re-elect Carmel Fisher 5,167,612 632,080 1,375,697 7,175,389 22,798 Elect Alistair Ryan 4,997,868 662,677 1,527,642 7,188,187 10,000 Elect Carol Campbell 4,974,313 666,384 1,547,490 7,188,187 10,000 Fix Auditor Fees 4,843,148 5,500 1,863,943 6,712,591 485,596 Elevation proposal 6,262,067 26,995,175 2,484,736 35,741,978

• Proxy votes to date: 7 million = 7% (resolutions 1-4), 35 million = 34% (resolution 5)

Today’s Meeting

• Business as per the Notice of Meeting

circulated on 24 September 2012

• Elevation Capital Resolution circulated
• n 17 October 2012
• Matters raised in conjunction with the

Elevation proposal will be addressed

• Mr Swasbrook will speak to the Elevation

resolution

• Adequate time will be allowed but we

will be mindful of time management

Presentation of Annual Result

Chairman’s Overview

Overview of the Year

• Net loss of $12.0m

– First half loss of $18.1m – Second half profit of $6.1m – $2.5m impairment of Fook Woo

• Adjusted Net Asset Value decreased

11.5% (9.1%)

All figures have either been audited by PwC or reviewed by an independent actuary

Adjusted Net Asset Value

Year to 30 June 2012 Since inception

(Nov 2007) Adjusted Net Asset Value

(11.5%) +6.5%

MSCI Global Small Cap Gross Index (in NZD)

(5.3%) (10.5%)

All figures have been reviewed by an independent actuary

Overview of the Year

• Net loss of $12.0m

– First half loss of $18.1m – Second half profit of $6.1m – $2.5m impairment of Fook Woo

• Adjusted Net Asset Value decreased

11.5%

• Total Shareholder Return decreased

18.4%

All figures have either been audited by PwC or reviewed by an independent actuary

Total Shareholder Return

Share Price at 30 June 2010 $0.83 Share Price at 30 June 2011 $0.95 Share Price at 30 June 2012 $0.70 Change (FY12) (26.3%) Dividends paid during year (FY12) 7.43cps Total Shareholder Return (FY12) (18.4%)

Total Shareholder Return

Return Dividends Per Share

*Assumes all dividends are reinvested, but excludes imputation credits. Source: Fisher Funds 0.000 0.005 0.010 0.015 0.020 0.025 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09 May-10 Oct-10 Mar-11 Aug-11 Jan-12 Jun-12 Dividends T

• tal Shareholder Return*

Share Price

Overview of the Year

• Net loss of $12.0m

– First half loss of $18.1m – Second half profit of $6.1m – $2.5m impairment of Fook Woo

• Adjusted Net Asset Value decreased

11.5%

• Total Shareholder Return of decreased

18.4%

• 7.43 cents per share paid in dividends

All figures have either been audited by PwC or reviewed by an independent actuary

Three Month Update

1 July – 30 September

Adjusted Net Asset Value

(2.9%)

Total Shareholder Return

+1.3%

MSCI Global Small Cap Gross Index

+3.0%

Communication and Reporting

• Frequent, comprehensive
• Marlin website
• Quarterly newsletters and monthly

updates

• Interim and annual reports
• Good reporting

Board

• Board rotation and refresh during 2011/12
• Two new experienced directors added to

the Board

– Alistair Ryan (February) to replace Annabel Cotton – Carol Campbell (June) to replace the anticipated retirement of James Miller (end of August)

• Recruitment to replace Mark Todd in

progress

• Carmel Fisher since 2007

Governance

• Remuneration & Nominations

Committee

• Share Purchase Plan
• Independence as per NZX

Management Agreement

• Contract with specific obligations and

commitments on both parties

• Renewal is based on Fisher Funds’

performance of the contract over a five year period

• Comprehensive review undertaken
• Performance metrics by Morningstar
• Independent process validation

Management Agreement

• Terms of the agreement available to all

shareholders

• Decision to renew and not invoke the

non-renewal process

• Marlin is identified as a Fisher Funds

managed fund

• Outperformance until 2011
• 2012 a year of two halves

Management Agreement

• Second half performance significant

improvement, despite Fook Woo

• Fisher Funds team - depth and capability
• Future performance potential
• Non-renewal: initiated by mid August

latest, six weeks before initial Elevation proposal

• Checked to validate before formalising

renewal decision, given Elevation proposal

Manager’s Review

Carmel Fisher, Roger Garrett & Manuel Greenland

The year that was

• Disappointing recent

performance but remain ahead of market

• New team & orderly

transition

• Investment approach

for ‘new normal’ environment

Sarin +3.1% Valid +1.3% Wirecard +1.2% Equinix +1.2% Conceptus +1.1% Fook Woo

• 3.9%

Ports Design

• 2.2%

Torishima

• 0.7%

O2 Micro

• 0.6%

China Automation

• 0.6%

Euro/NZD

• 0.3%

USD/NZD

• 0.2%

HKD/NZD

• 0.1%

Currency overall

• 0.6%

China overall

• 6.7%

Contributors in year to 30 September 2012

NAV performance vs Index

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 2008 (partial year) 2009 2010 2011 2012 Inception to 30 Sep 2012 Marlin Adjusted NAV MSCI Global Small Cap Gross Index (in NZD) Value add

As for the discount ...

• 0.70
• 0.60
• 0.50
• 0.40
• 0.30
• 0.20
• 0.10

0.00 SUNVEST CORPORATION LIMITED WIDESPREAD PORTFOLIOS LTD GLOBAL MASTERS FUND LTD PETERS MACGREGOR INVESTMENTS MARLIN GLOBAL LTD TEMPLETON GLOBAL GROWTH FUND PLATINUM CAPITAL LTD MAGELLAN FLAGSHIP FUND LTD PREMIUM INVESTORS LTD

NZX and ASX closed-end listed investment companies with international equities focus as at 30 September 2012

As for the discount ...

NZX and ASX closed-end listed investment companies with international equities focus per KPMG report 2009

• 0.45
• 0.40
• 0.35
• 0.30
• 0.25
• 0.20
• 0.15
• 0.10
• 0.05

0.00 BENTLEY CAPITAL LTD AMP CAPITAL CHINA GROWTH FD PETERS MACGREGOR INVESTMENTS MARLIN GLOBAL LTD TEMPLETON GLOBAL GROWTH FUND HUNTER HALL GLOBAL VALUE LTD MERCANTILE INVESTMENT CO LTD PLATINUM CAPITAL LTD MAGELLAN FLAGSHIP FUND LTD

as at 30 September 2012

As for the discount ...

NZX and ASX closed-end listed investment companies with international equities including sector funds

• 70%
• 60%
• 50%
• 40%
• 30%
• 20%
• 10%

0% 10%

as at 30 September 2012

Introducing the team

With support from the entire Fisher Funds investment team – one of the largest and most experienced in New Zealand.

Mark Brighouse

• Chief Investment Officer

Manuel Greenland - Senior Investment Analyst Roger Garrett

• Senior Portfolio Manager

The Transition at Fisher Funds

Manuel Greenland joins the team May

2012

Ken working from the USA

June 2012 July 2012 Aug 2012 Sep 2012

Roger Garrett joins the team Ken working from NZ

Initial Portfolio Review

50% 25% 25%

Growth mkt New products New markets

18% 25% 57%

China Defensive Growth company

Portfolio Performance

54% 29% 17%

Investment thesis

Good Challenged Review

13%

• 5%
• 30%

Good Challenged Review

Distribution of returns since June

Recent Decisions

• Fundamental

review

• Robust sell

and buy discipline

0.25 0.27 0.29 0.31 0.33 0.35 0.37 0.39 27/07/2012 27/08/2012 27/09/2012

Raffles Education

+ 14%

400 450 500 550 600 650 700 750 800 27/07/2012 27/08/2012 27/09/2012

Sell Torishima Pump

• 21%

Recent Decisions

• Innovative

analysis

• Enhancing

quality focus

140 142 144 146 148 150 152 154

Buy VW

+8.2%

New Senior Portfolio Manager Roger Garrett

• 24 years investment management

experience

• 18 years experience covering

international equity markets while based in London –Emerging Market Equities –International Equities

Some Key Global Investment Principles

• Disciplined process backed up by in house

research

• Fundamental analysis
• Focus on medium – long term growth companies
• A preference for high quality companies with

strong cash flow

• Generally avoid the outliers
• Develop a keen understanding of the risks

associated with a company

• Don’t overpay

Portfolio Strategy

• Validation of all stocks in the portfolio

according to STEEPP

• Meeting company management
• Understanding the risks to the

investment thesis

• Match portfolio weightings with

conviction levels

• Identify new ideas for the portfolio

Portfolio Strategy Enhancements

• Increase in diversification
• Quality bias
• Set ranges for sector and regional

weightings

• Introduce larger capitalisation stocks
• No unintended portfolio biases

Questions from shareholders relating to the Chairman’s & Manager’s presentations

2012 Annual Meeting Resolutions

• Introduce and propose
• Discussion, questions
• Enter your vote on voting paper

and lodge your voting paper at end of resolutions

Matters of Business

• Annual Report
• Resolutions:

– To re-elect Carmel Fisher as a Director – To elect Alistair Ryan as a Director – To elect Carol Campbell as a Director – Auditor remuneration – Elevation proposal

Resolution 1

Re-election of Director: Carmel Fisher

That Carmel Fisher be re-elected as a director of Marlin Global

Resolution 2

Election of Director: Alistair Ryan

That Alistair Ryan be elected as a director of Marlin Global

Resolution 3

Election of Director: Carol Campbell

That Carol Campbell be elected as a director of Marlin Global

Resolution 4

Auditor’s Remuneration

That the directors be

authorised to set PricewaterhouseCoopers’ remuneration for the current year

PricewaterhouseCoopers continue as the auditor of Marlin

Resolution 5

Elevation proposal

That the Board of Marlin Global

Limited (MLN:NZX) terminate the current management contract and return all capital to shareholders at Net Asset Value less costs of termination, impairments and portfolio liquidation.

Conclusion

• Complete and sign voting paper
• Voting papers in the voting boxes
• If you need a voting paper please

see Computershare

• Register as attending
• Results to NZX

Thank you