Update June 2005 Quarter

Dear Shareholders

At A Glance Welcome to our June 2005 quarter PORTFOLIO REVIEW shareholders’ newsletter. The past quarter All of the decline in the portfolio value came Performance for 15 months to has been an eventful time at Kingfish with from the share price falls in 30 June 2005: 1) The payment of our first dividend (2 (-15%) and Turners Actions (-30%). Without cps fully imputed paid on 10 June 2005, these two falls the NAV per share would be Net Asset Value $1.2186 +25.8% representing a yield of 2.2%); back at an all time high! Waste Management, Diluted Net Asset Value 2) The establishment of our Dividend Freightways and Mainfreight made solid $1.1104 +14.7% Reinvestment Plan, offering shareholders gains, however their performance was not Share Price $0.95 - 5% the opportunity to reinvest dividends in enough to offset the overall decline. Warrant price $0.17 +17% Kingfish ordinary shares. 3) The production of our first Annual Report PORTFOLIO CHANGES and The portfolio changes since those disclosed June Quarter Biggest Movers 4) The Annual Shareholders Meeting (ASM) in the Annual Report include the exiting of held on June 17 2005. Just Water and trimming the position in Waste Management +10% Thank you to all those who attended the Metlifecare. Mainfreight +9% ASM. It was very encouraging to see so Fisher Funds has advised the Board that it Freightways +7% many of you supporting the company, to is comfortable with the portfolio and most have the opportunity to personally meet Metlifecare -15% positions are at or are very close to target you and to update you on performance to Turners Auctions -30% weightings. New investment opportunities date. are being considered in the event that We have included a section in this newsletter Metlifecare is compulsorily acquired. on key questions raised at the ASM. Recent Portfolio changes Thank you for your continued support and Metlifecare decreased we look forward to communicating with you FISHER FUNDS OUTLOOK Just Water exited again later in the year. We expect a recovery in our stocks as the increased fundamentals supporting these companies remain strong. Company management is optimistic about future results and we support these views. Rob Challinor We anticipate investor sentiment will remain Portfolio Holdings at 30 June 05 Chairman - Kingfish Limited cautious during the August/September profit 13 July 2005 reporting season, which will confirm the Kingfish Holdings Ltd: extent and impact of any economic FISHER FUNDS QUARTERLY REVIEW Portfolio Weightings >10% slowdown. • Waste Management The June quarter was challenging with sharp falls in the period and a solid recovery • Freightways towards the end. Investor sentiment became • Ryman Healthcare cautious after the March interest rate hike Carmel Fisher • Mainfreight and the market mood remains wary. Managing Director • Pumpkin Patch Fisher Funds Management Limited The Kingfish net asset value fell 5.5% during 13 July 2005 Portfolio Weightings <10% the June quarter, although the dividend • Metlifecare accounted for a significant part of the decline. • Michael Hill • Turners Auctions Net Asset Value, Share & Warrant Price Performance (Kingfish Holdings owns the core portfolio of companies that are KFL NAV 1.60 KFL Price expected to be owned for many years) KFL + KFLWA Price 1.50 1.40 Kingfish Nursery Limited: 1.30 1.20 • Cadmus Technology 1.10 • Comvita 1.00 • Pod 0.90 • Kidicorp 0.80 • NZ Exchange Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 • Steel & Tube 0.38 KFL Warrant Price

• Turners & Growers 0.28 (Kingfish Nursery owns shares in companies that have not yet met all 0.18 investment criteria to become a core 0.08 holding) Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Update

ASM KEY DISCUSSION POINTS RELATIVE PERFORMANCE TO 30 JUNE 2005 AtDecember what level of NAV2004 discount Quarter to One Three Twelve Since share price would Kingfish consider Month Months Months Inception a share buy back? Kingfish NAV (Start Date 31 March 04) 4.67% -5.50% 18.48% 25.84% The shares of a Listed Investment Company (LIC) such as Kingfish may 90 Day Bank Bill Index +7%pa 1.14% 3.47% 13.82% 17.12% alternate trading between a premium or Difference 3.53% -8.97% 4.66% 8.72% discount to NAV. The Kingfish capital management policy as disclosed in the prospectus states that “if in the opinion Net Asset Value Performance of the Board the value of the shares and Since Inception Vs Relevant Indices warrants do not appropriately reflect the underlying asset value the board will from Kingfish NZ50G NZSCI NZSEMC time to time consider buying shares and warrants in Kingfish. Any decision by the Board to acquire shares or warrants will 40 consider other investment alternatives and whether the acquisition is in the best interest of the shareholders”. The Kingfish 35 Board will most likely consider a buyback programme when it believes the discount to be extreme, or greater than the 30 discount ranges prevalent in similar investment vehicles. If a decision is made in relation to a buy back then 25 Kingfish is required to advise the market in advance. The Board expects that an upward trend in the underlying NAV over 20 time should usually be enough to minimize any discount to NAV. 15

The level and criteria for the Manager’s eligibility for the 10 Performance fee Fisher Funds is entitled to a performance 5 fee for generating returns in excess of a benchmark rate. The benchmark rate for the year ended 31 March 2005 was 13.4% 0 The actual return achieved by Fisher Funds Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 was 36.4%, Fisher Funds was therefore entitled to receive 15% of this “excess” return. The fee became payable once the NAV per share exceeded $1.33. This occurred at various dates in the first WHAT’S COMING UP: quarter of 2005. The base NAV for the Interim Report – Oct 05 current year becomes $1.32 (being the highest NAV per share previously achieved The Kingfish Update Report will be If you would like to receive an at the end of any previous financial year). produced for the December and June emailed copy of the monthly Fisher A performance fee will not become quarters. The Annual Report and Funds newsletter please register payable again until the Manager achieves Interim Report will be produced in your email address at an increase in NAV in any year that the interim periods. [email protected] exceeds the benchmark return and the NAV exceeds $1.32. The Board believes A copy of the Fisher Funds monthly that this structure is appropriate and newsletter “From the Undergrowth” compares favourably with other fund is available on the Kingfish website managers in Australasia and that it (www.kingfishlimited.co.nz) under correctly incentivises the Manager to the Shareholder Reports section. achieve a competitive return for Kingfish shareholders.

Kingfish Limited Phone +64 9 489 7094 Fax +64 9 489 7139 P O Box 33 549 Takapuna , email: [email protected] www.kingfishlimited.co.nz The Information and any opinions herein are based on sources believed reliable, but the writer makes no representations as to its accuracy or completeness. All opinions reflect the writer’s judgement on the date of this report and are subject to change without notice.