How does a fund lose $17.3 million in a year, when the index it is benchmarked against returned 30.5 percent?

That is a question Fisher Funds managers may be wrestling with, as it laments the dismal returns of two listed managed investment vehicles it manages, even while international markets surged.

Investment fund Marlin – which invests in international equities – has delivered its annual report for the year to 30 June.

It suffered a $17.3 million loss and a total adjusted net asset value return of -8.5 percent.

But that was against a benchmark return of 30.5 percent. The fund is benchmarked against the S&P Large Mid Cap/S&P Small Cap Index, 50 percent hedged to New Zealand dollars.

Barramundi – also managed by Fisher Funds – lost $42.9m and delivered a 18.2 percent adjusted NAV return.

It is benchmarked against the ASX200, 70 percent hedged to New Zealand dollars. This index returned 9.2 percent.

Fiona Oliver is chair of both investment vehicles and declined to be interviewed on Monday.

In a note with Barramundi’s annual report, she said it had been a challenging year and disappointing for shareholders.

“The 2026 financial year has been very disappointing for Barramundi. Changeable market conditions, like those experienced over the period, continue to reinforce a strategy of focusing on well-managed businesses, whose sustainable competitive advantages enable them to adapt and respond to an ever-changing environment over the medium to long term.”

She said Marlin had also disappointed.

“Marlin has not performed well during the 2026 financial year. The board is disappointed with the performance and is working closely with the Manager to be assured that the portfolio is positioned to remedy this situation in the future.”

Senior portfolio manager Ashley Gardyne said Marlin had been on the wrong side of a surge in AI-linked and cyclical stocks.

“Marlin was on the wrong side of this extreme rotation, with additional headwinds from the portfolio’s sector positioning and some stock-specific issues. Against this backdrop, we have undertaken a comprehensive review of our portfolio, while also reviewing and looking for improvements to how we implement our investment process.

“We remain confident that owning quality businesses with durable competitive advantages is the right way to compound shareholder wealth over the long term. The underperformance of quality stocks has now reached levels last seen during the dotcom bubble – and history shows that periods like this do not last. With the valuation levels of our portfolio companies looking increasingly attractive, we believe Marlin is well positioned to deliver improved returns in the years ahead.”

Kernel founder Dean Anderson said it was a good example of how concentration and conviction could go wrong.

“As an active management style, they’ve done what you’d be seeking for an active manager, which is being genuinely active, rather than index-hugging. You don’t want to be paying fees for somebody that’s just tracking an index.

“But the opportunity from the current market environment where there is a wide range between the best and worst-performing stocks and best- and worst-performing sectors can equally lead to significant embarrassment. And when you’re trying to pick a small number of stocks and aren’t fully diversified, the risk that you get those wrong is meaningful.”

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