Marlin (NZX:MLN): How has its portfolio developed in last few months?

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Marlin (NZX:MLN): How has its portfolio developed in last few months?

 Marlin (NZX:MLN): How has its portfolio developed in last few months?
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Highlights 

  • Marlin’s adjusted NAV return fell 2% while gross performance return dropped by 2.5% in November 2021.
  • The Group underperformed in November due to softer-than-expected financial results from 3 of MLN’s portfolio companies.
  • The key issue to examine in the weeks ahead is the efficiency of COVID-19 vaccines against Omicron.

 

Marlin Global Limited (NZX:MLN) provides investments in different upcoming international ventures and manages a diverse portfolio across parts of NZ and Australia. The Group provided its monthly update in December 2021.

Marlin’s adjusted NAV return fell 2% while gross performance return dropped by 2.5% in November 2021. This was in comparison to a 0.6% drop in the global benchmark S&P Large Mid Cap/S&P Small Cap Index.

 Marlin’s details

Image source: © 2021 Kalkine Media®, Data source- Refinitiv

The Group fell behind the market in November. Softer-than-expected financial results from 3 of MLN’s portfolio companies – PayPal, StoneCo and Alibaba led the Group to underperform.

DO READ: Are these 5 NZX dividend stocks worth considering in 2022?

Markets began on a positive note in November but faded near the end of the month. The MSCI World Index ended 2.3% lower due to increasing COVID-19 hospitalisation in parts of Europe, a more hawkish attitude of the US Federal Reserve and worries related to Omicron.

Portfolio performance

In November, US retailer Dollar Tree was the top performer in MLN’s portfolio generating a return of 24%. However, StoneCo, a Brazilian payment provider, was the worst performer in the month, reporting a decline of 54%.  PayPal and Alibaba also registered a drop of 21% and 23%, respectively, in the month.

ALSO READ: How are 5 NZX stocks under NZ$5 faring?

Marlin has declared total dividends of 7.43cps till date and another dividend is expected to be declared.

DO READ: Why to consider these 2 NZX financial stocks in 2022?

On 11 January, at the time of writing, MLN was trading flat at $1.46

Bottom Line

The key issue to examine in the weeks ahead is the efficiency of vaccines against Omicron. Drug companies are confident in developing new vaccines to deal with the new strain quickly even if vaccines are not that efficient. New antiviral pills can also aid in lowering hospitalisations ahead.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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