BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Investor Presentation (May 2014)
28 slides from BKI Investment's investor presentation, May 29, 2014
Slide 1: Presentation to Shareholders
For personal use only Presentation to Shareholders
Slide 2: Disclaimer
For personal use only Disclaimer This material has been prepared by BKI Investment Company Limited. The information within this document is not intended to provide advice to investors or take into account an individual’s financial circumstances or investment objectives. This is general investment ad
Slide 3: Agenda
Agenda For personal use only Topics Page 1 Listed Investment Company 1. 4 2. BKI Overview 9 3. BKI Portfolio 17 4 BKI Performance 4. P f 23 5. Appendix 26 3
Slide 4: 1. Listed Investment Company
For personal use only 1. Listed Investment Company
Slide 5: Listed Investment Company
Listed Investment Company For personal use only What is a Listed Investment Company (LIC) Listed on the Australian Securities Exchange (BKI.ASX) BKI is i an investment i vehicle hi l that h invests i i a diversified in di ifi d portfolio f li off Australian shares, trusts and interest bearing securi
Slide 6: Advantages of a Listed Investment Company
Advantages g of a Listed Investment Company For personal use only Simplicity An investment in BKI.ASX provides administration simplicity. Single shareholding; Two dividend statements per annum. Liquidity Buy/Sell y/ shares on the Australian Securities Exchange. g Settlement in T+3 Days. BKI has over
Slide 7: Advantages of a Listed Investment Company
Advantages g of a Listed Investment Company For personal use only Cost and Structure BKI is a Company with Internalised Management. Management Expense Ratio (MER) of only 0.17%. Diversification An investor in BKI.ASX ggains exposure p to most sectors of the market through well managed, dividend payi
Slide 8: Advantages of a Listed Investment Company
Advantages g of a Listed Investment Company For personal use only Performance BKI has delivered sound long term shareholder and portfolio performance. Dividend History Interim Ordinaryy Dividends have ggrown byy 64% from 2.10cps p in 1H2005 to 3.45cps in 1H2014. Capital Management In the 10 years of
Slide 9: 2. BKI Overview
For personal use only 2. BKI Overview
Slide 10: Business Overview
Business Overview For personal use only ¾ BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. ¾ We are a closed end company and do not charge external portfolio management g or pperformance fees. ¾ Our aim is to create w
Slide 11: Premium/Discount Analysis
Premium/Discount Analysis For personal use only as at 30 April 2014 35.0% $1.80 $1.70 $1.60 25 0% 25.0% $1.50 $1.40 15.0% $1 30 $1.30 $1.20 5.0% $1.10 $1.00 -5.0% 5 0% $0.90 $0.80 $0.70 -15.0% $0 60 $0.60 $0.50 -25.0% Prem/Disc % Pre Tax NTA BKI Share Price 11
Slide 12: Dividend Distributions 2004 - 2014
Dividend Distributions For personal use only 2004 - 2014 4.0 3.5 1 0.5 3.0 1 0.5 0.5 2.5 are s per Sha 2.0 3.4 3.45 3.2 3.2 3.25 1.5 3 3 3 3 2.5 2.75 3 3 Cents 26 2.6 2.7 25 2.5 25 2.5 2.1 2.2 1.0 2 0.5 0.0 Ordinary Dividends Special Dividends 12
Slide 13: Dividends + Franking Credits
Dividends + Franking Credits For personal use only ¾ Dividends and Franking Credits received from a $10,000 $10 000 Investment in 2004 V’s V s Bank Quarterly Interest. ¾ Highlights the opportunity of a fully franked dividend in a falling interest rate environment. 1,600 1,400 $ Austraalian Dollarss
Slide 14: Management Expense Ratio
Management Expense Ratio For personal use only 0.80% 0.71% 0.70% 0.69% BKI MER history since inception 0.60% 0.56% 0.50% 0.46% 0.46% 0.40% BKI Internally Managed 0.31% 0.30% 0.19% 0.18% 0.18% 0.19% 0.20% 0.17% 0.10% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 Dec 14
Slide 15: Experience and Alignment
Experience and Alignment For personal use only Investment Tenure Equity T Team Member M b Q lifi ti Qualifications P iti Position Experience With BKI Ownership 1 Robert Millner FAICD Chairman 30 yrs 10 yrs 8,156,936 Investment Committee David Hall, AM FCA, FAICD Non Executive Director 34 yrs 10 yrs
Slide 16: Key Differentiators
Key Differentiators For personal use only Key Differentiators ¾ Washington H Soul Pattinson and Company Limited (WHSP) - In 2009 WHSP increased their shareholdingg in BKI to become the largest g shareholder ((currentlyy holdingg 11.9% of BKI shares). Listed in 1903, WHSP is the second oldest listed
Slide 17: 3. BKI Portfolio
For personal use only 3. BKI Portfolio
Slide 18: Top 25 Shareholdings
Code Company Name % of Portfolio 1 CBA Commonwealth Bank 9.3% 2 NAB National Australia Bank 9 2% 9.2% For personal use only 3 WBC Westpac Banking Corp 8.3% Top 25 Shareholdings 4 5 BHP TLS BHP Billiton Limited Telstra Corporation 6.3% 5.3% A att 30 A As Aprilil 2014 6 NHC New Hope Corporation 5.2% 7
Slide 19: Sector Over/Underweights
Sector Over/Underweights For personal use only 6.0% 5.1% 4.9% BKI Portfolio: Active Weight g byy Sector 3.9% 4.0% 3.1% 1.9% 2.0% 1.4% 0.7% 0.0% ‐2.0% ‐0.9% ‐1.0% ‐1.9% ‐4.0% ‐6.0% ‐8.0% ‐6.9% ‐10.0% ‐10.2% ‐12.0% 12 0% Cash umer Disc eal Estate FFinancials Utilities Telco er Staples ndustrials Energ
Slide 20: Portfolio Valuation
Portfolio Valuation For personal use only 1 000 1,000 900 800 700 600 $ Millions s 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 p April Investment Portfolio Cash 20
Slide 21: Stock Selection Process
Stock Selection Process For personal use only BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. Stock selection is bottom up, focusing on the merits of individual companies rather than market and economic trends. trend
Slide 22: Purchases / Sales
Purchases / Sales For personal use only Recent Purchases BKI raised $107.0m through a Placement and Entitlement Offer in Sept/Oct 2013. During the first half of FY2014 major investments have included: ANZ Bank Insurance Australia Group Westpac Bank National Australia Bank APA Group Suncorp Group Tel
Slide 23: 4. Performance
For personal use only 4. Performance
Slide 24: BKI Performance
BKI Performance For personal use only as at 30 April 2014 BKI Performance 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs as at 30 April 2014 (pa) (pa) (pa) (pa) BKI Portfolio S&P/ASX 300 ACC INDEX (XKOAI) 10.1% 8.8% 12.3% 2.6% 9.4% Returns are BKI Total Shareholder Returns 14.9% 15.3% 16.0% 7.2% 10.8% measured aft
Slide 25: Total Shareholder Returns
Total Shareholder Returns For personal use only as at 30 April 2014 Total Shareholder Returns exclude the benefit of franking credits being passed on from BKI to Shareholders. 25
Slide 26: 5. Appendix
For personal use only 5. Appendix
Slide 27: BKI Fact Sheet
27 BKI Fact Sheet For personal use only www.bkilimited.com.au ASX Code BKI.ASX Research Coverage Morningstar Listing Date December 2003 Morgan Stanley Mandate Aust Listed Equities Bell Potter Investment Sectors Diversified Evans and Partners S&P/ASX 300 Baillieu Holst Benchmark Acc Index Total Asset
Slide 28: For more information
For more information: www.bkilimited.com.au For personal use only 28
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