BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Investor Presentation (September 2015)
20 slides from BKI Investment's investor presentation, Sep 16, 2015
Slide 1: BKI Investment Company Limited Presentation to Shareholders September 2015
For personal use only BKI Investment Company Limited PRESENTATION TO SHAREHOLDERS SEPTEMBER 2015 1
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: Why do we invest for the long term?
For personal use only Why do we… 6.2% Grossed up …invest for the long term with an aim to create wealth Dividend for BKI shareholders, through an increasing fully franked Yield dividend and capital growth? …focus on keeping costs low – and not charge external 0.18% portfolio management or performanc
Slide 4: Key Differentiators
For personal use only Key Differentiators High Value / Low Cost ‐ Active, high conviction, closed end company. No external portfolio management or performance fees. Performance ‐ Delivering sound returns plus dividend growth. Alignment ‐ Directors and Management are shareholders in BKI. We foc
Slide 5: Key Differentiators
For personal use only Key Differentiators Diversification – Exposure to well managed, dividend paying companies. Listed on the ASX • ASX Listing Rules ‐ Continuous Disclosure requirements, High levels of Transparency and Compliance. • Size & strength ‐ Market Capitalisation of $944m*. • Simplici
Slide 6: Low Cost, Income and Capital Growth
For personal use only BKI Investment Company Limited LOW COST, INCOME AND CAPITAL GROWTH 6
Slide 7: Low Cost, Growing Dividend
Low Cost, Growing Dividend For personal use only BKI’s Board & Management are shareholders in BKI. We focus on keeping costs low – we do not charge external portfolio management or performance fees. We invest for the long term with an aim to creating wealth for all shareholders through increasing fu
Slide 8: Low Cost
Low Cost For personal use only Based on $100,000 investment in a Listed Investment Company, using a 10% return pa over a 20 year period. Over 20 years, administration $700,000 $21,678 0.18%pa MER fees of 2.0% can $600,000 $112,309 1.0%pa MER $206,654 2.0%pa MER dilute the total $500,000 return on an
Slide 9: Income Growth
For personal use only Income Growth Dividends + Franking Credits received from a $100,000 investment in BKI at inception versus Bank Quarterly Interest. Highlights the opportunity of receiving a fully franked dividend in a falling interest rate environment. BKI Dividend BKI Franking Interest 16,000
Slide 10: Capital Growth
Capital Growth For personal use only Total Shareholder Total Shareholder Returns including franking credits as at 31 August 2015 Returns including the benefit of franking 20.0% 18.6% credits passed on from 15.1% 15.0% BKI to shareholders. 12.7% 11.1% 10.8% 9.8% 10.0% 7.9% 6.5% BKI has ample franking
Slide 11: Long Term Investment Portfolio
For personal use only BKI Investment Company Limited LONG TERM INVESTMENT PORTFOLIO 11
Slide 12: BKI Portfolio – Exposure by Sector
BKI Portfolio – Exposure by Sector For personal use only High Conviction Benchmark Unaware Banks 33.2% Telecommunication Services 10.5% Information BKI’s long term Technology 0.0% Financials strategy of investing in 10.1% dividend paying stocks Real Estate means the portfolio 0.4% is not aligned Con
Slide 13: BKI Portfolio – Top Shareholdings as at August 2015
BKI Portfolio – Top 25 Shareholdings as at 31 August 2015 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 National Australia Bank 9.3% 14 IAG Limited 1.8% 2 Commonwealth Bank 8.8% 15 Invocare Limited 1.8% 3 Westpac Bank 7.4% 16 Suncorp Group Limited 1.7% 4 Telstra Corpo
Slide 14: Low Portfolio Turnover – Focus on Quality
Low Portfolio Turnover – Focus on Quality For personal use only Low Portfolio Turnover A focus on Quality 60% 50% Cash 4% Resources 40% 11% 30% 20% 10% Industrials 0% 85% BKI Average Portfolio Turnover = 7.4% Typical Active Equity Manager Portfolio Turnover = 30% ‐ 50%+ Industrials Resources Cash (A
Slide 15: Looking Ahead
Looking Ahead For personal use only Long term investors constantly remain focused on future opportunities. The following sectors have an attractive long term thematic and the BKI portfolio is well positioned to capture future growth expected within these sectors. Finance ‐ Attractive fully franked
Slide 16: Yield for Today, Growth for Tomorrow
Yield for Today For personal use only Telstra TPG Telecom FY16 Estimates FY16 Estimates * Growth for Tomorrow Income Dividend Yield Franking 5.2% 100% 1.5% 100% Grossed up Yield 7.5% 2.2% DPS Growth 5% 20% BKI’s stock selection is bottom up, focusing on the Pay Out Ratio 87% 39% merits of individual
Slide 17: Appendix
For personal use only BKI Investment Company Limited APPENDIX 17
Slide 18: Experience and Alignment
Experience and Alignment For personal use only Equity Investment Tenure Team Member Qualifications Position Ownership Experience With BKI 1 Robert Millner FAICD Chairman 32 yrs 12 yrs 8,490,539 Investment Committee David Hall, AM FCA, FAICD Non Executive Director Chairman Audit 36 yrs 12 yrs 277,970
Slide 19: BKI Fact Sheet
BKI Fact Sheet For personal use only 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 BaillieuHolst Benchmark Acc Index Approved Product List Dixon Advisory
Slide 20: www.bkilimited.com.au
For personal use only www.bkilimited.com.au Our aim is to BKI Online create wealth Sign up online to receive news and information about your company via for BKI email. shareholders, Subscribe to: • NTA+Monthly Reports through an • Quarterly Reports • Presentations to Shareholders • Annual Report inc
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