Kingfish nets a good catch in its first six months

Thursday 14th October 2004

Listed investment trust Kingfish has netted a good result in its first six months of trading.

The company says it achieved a $6.7 million surplus after taxation and grew its net asset value by 15.2%.

The surplus after taxation includes $ 8.7 million of unrealised gains on investments and is after incurring $ 1.9 million of issue expenses relating to the IPO and listing.

"The result was particularly pleasing considering that within six months our manager, Fisher Funds, had not only invested over 80% of the $58.5 million IPO proceeds in a portfolio of quality New Zealand companies but also managed to attain a significant increase in the net asset value," Kingfish chairman Rob Challinor says.

"The result is all the more impressive given the higher-than-average cash balance held during the period while the portfolio was established."

Kingfish's main holdings include Waste Management, Metlifecare, Freightways, and Turners Auctions - companies selected because of their track record of growing earnings and sustainable competitive advantage.

"We expect these companies will be part of the Kingfish portfolio for many years to come," Fisher Funds managing director Carmel Fisher says.

The Kingfish holds 16 stocks and Fisher Funds expects that a further two or three might be introduced to the portfolio. About 16% of the portfolio is cash.

The most significant contributor to the performance of the Kingfish portfolio in the six months to September 2004 was Pumpkin Patch whose shares lifted 65% following its June listing.

Strong performances also came from Ryman Healthcare, Metlifecare, Freightways, Waste Management, Mainfreight and Just Water International.

Kingfish will not pay a dividend for the first half year but maintains its dividend policy which is to distribute net income, excluding unrealised investment gains.

Kingfish shares are currently trading at 99c which is a discount to nav.

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