Dividends - BKI Investment Company Limited

advertisement
Half Year Presentation
January - February 2013
1
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 advice only and does not constitute advice to any person. The
opinions within this document are not intended to represent recommendations to investors, they are the view of BKI Investment
Company Limited as of this date and are accordingly subject to change.
Information related to any company or security is for information purposes only and should not be interpreted as a solicitation of
offer to buy or sell any security. The information on which this presentation is based has been obtained from sources we believe
to be reliable, but we do not guarantee its accuracy or completeness.
Investors should consult their financial adviser in relation to any material within this document.
2
BKI Result Highlights
1H 2013
1H 2012
Growth
Ordinary Dividend Income
$15.6m
$14.3m
8.6%
Net Operating Result*
$15.4m
$14.2m
8.8%
Earnings Per Share*
3.56cps
3.33cps
6.9%
Ordinary Dividend Per Share
3.25cps
3.20cps
1.2%
Special Dividend Per Share
0.50cps
-
n/a
Total Interim Dividends
3.75cps
3.20cps
17.2%
 Management Expense Ratio (MER) maintained at 0.18%
 12 month Total Shareholder Returns - outperformance of 5.8%**
* Excluding Special Dividends. **BKI’s Total Shareholder Returns (including the reinvestment of dividends) for the year to 31 December 2012 was 25.5% compared
to the S&P/ASX 300 Accumulation Index which returned 19.7% over the same period. Past performance is not indicative of future performance.
3
Net Operating Result
16
14
12
$ Millions
10
8
6
4
2
0
1H 04
1H 05
1H 06
1H 07
1H 08
1H 09
1H 10
1H 11
1H 12
1H 13
4
Dividends Paid
4.0
3.5
1
3.0
1
0.5
0.5
Cents per Share
0.5
2.5
2.0
1.5
1.0
2
2.1
2.2
2.5
2.5
2.6
2.7
3
3
3
3
2.5
2.75
3
3
3.2
3.2
3.25
0.5
0.0
Ordinary Dividends
Special Dividends
5
Dividends and Franking Credits received
from a $10,000 Investment in 2004
 BKI Historical Dividend V’s Bank Quarterly Interest
 Highlights the opportunity of a fully franked dividend in a falling interest rate environment
1,000
$ Australian Dollars
800
600
400
200
0
FY2005
FY2006
FY2007
FY2008
BKI Dividend
Source: BKI Investment Company Limited; IRESS.
FY2009
FY2010
BKI Franking
FY2011
FY2012
FY2013
Interest
6
BKI Grossed Up Dividend Yield
Assumes a tax rate of 30%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
BKI Grossed Up Dividend Yield
90 Day Bank Bill
7
Management Expense Ratio
0.80%
0.70%
0.69%
0.71%
0.56%
0.60%
0.46%
0.50%
0.46%
BKI Internally Managed
0.40%
0.31%
0.30%
0.19%
0.18%
0.18%
0.18%
2010
2011
2012
1H 13
0.20%
0.10%
2004
2005
2006
2007
2008
2009
8
BKI Performance
as at 31 December 2012
BKI Performance
1 Year 3 Years 5 Years 7 Years 9 Years
as at 31 December 2012
BKI Portfolio
Returns are
measured
after
all operating
expenses,
provision and
payment of
income and
capital gains
tax.
(pa)
(pa)
(pa)
(pa)
S&P/ASX 300 ACC INDEX (XKOAI)
19.7%
2.8%
-1.8%
4.1%
8.4%
BKI Total Shareholder Returns
25.5%
7.8%
4.9%
6.7%
8.9%
5.8%
5.0%
6.7%
2.6%
0.5%
BKI Portfolio Performance
15.3%
4.8%
2.3%
5.4%
8.5%
BKI Portfolio Outperformance V's XKOAI
-4.4%
2.0%
4.1%
1.3%
0.1%
BKI Share Price Outperformance V's XKOAI
Source: BKI Investment Company Limited, IRESS. Portfolio Returns are measured by change in pre tax NTA and are after all
operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends. Total Shareholder
Returns include reinvestment of dividends. Past performance is not indicative of future performance.
9
Total Shareholder Returns
as at 31 December 2012
30.0%
25.5%
25.0%
20.0%
19.7%
15.0%
8.9%
7.8%
10.0%
6.7%
4.9%
5.0%
8.4%
4.1%
2.8%
0.0%
-5.0%
-1.8%
1 Year
3 Years (pa)
5 Years (pa)
BKI Total Shareholder Returns
7 Years (pa)
9 Years (pa)
S&P/ASX 300 ACC INDEX (XKOAI)
Source: BKI Investment Company Limited, IRESS. Total Shareholder Returns include reinvestment of dividends. Past performance is not
indicative of future performance.
10
Discount to NTA
as at 31 December 2012
$1.70
30.0%
$1.60
$1.50
20.0%
$1.40
$1.30
$1.20
10.0%
$1.10
$1.00
0.0%
$0.90
$0.80
-10.0%
$0.70
$0.60
$0.50
-20.0%
Prem/Disc %
Pre Tax NTA
BKI Share Price
11
Share Purchase Plan
Completed October 2012
 $19.1m raised through the Share Purchase Plan (SPP).
 SPP shares were issued at $1.29. Now trading at $1.45 (as at 29 January 2012).
 SPP shares entitled to Fully Franked Interim Dividend of 3.25cps and Fully
Franked Special Dividend of 0.50cps.
 New shares issued in SPP have seen a capital appreciation of 15.3%* since
October 2012.
* Includes the Interim Ordinary and Special Dividends, excludes franking credits.
Source - BKI Investment Company Limited; IRESS.
12
Portfolio Valuation
700
600
$ Millions
500
400
300
200
100
0
2004
2005
2006
2007
2008
2009
Investment Portfolio
2010
2011
2012
1H 2013
Cash
13
BKI Investment Company Limited
Top 20 Shareholdings
Diversification
 BKI’s portfolio comprises of
dividend paying, well managed
companies. Exposure to most
sectors of the market.
High Conviction
 Benchmark Unaware – BKI’s
long term strategy of investing
in dividend paying stocks
means the portfolio is not
aligned with an index.
14
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
NHC
CBA
NAB
BHP
WBC
TLS
WES
ANZ
WOW
ALQ
AGK
WPL
CCL
TPM
MTS
ARP
APA
IVC
QBE
MLT
Total
New Hope Corporation
Commonwealth Bank
National Australia Bank
BHP Billiton Limited
Westpac Banking Corp.
Telstra Corporation
Wesfarmers Limited
ANZ Banking Corporation
Woolworths Limited
ALS Limited
AGL Energy Limited
Woodside Corporation
Coca-Cola Amatil
TPG Telecom Limited
Metcash Corporation
ARB Corporation
APA Group
Invocare Limited
QBE Insurance Group
Milton Corporation
Cash & Cash Equivalents
9.5%
9.1%
8.4%
7.9%
7.0%
4.9%
4.4%
3.5%
3.4%
3.2%
2.7%
2.1%
1.8%
1.7%
1.6%
1.4%
1.3%
1.3%
1.2%
1.1%
6.4%
79.6%
Index
0.0%
7.9%
4.9%
9.3%
6.5%
4.4%
3.0%
5.5%
3.0%
0.3%
0.7%
2.3%
0.8%
0.2%
0.3%
0.1%
0.4%
0.1%
1.1%
0.0%
0.0%
14
50.8%
Sector Weightings
Sector
Portfolio Weight
31 Dec 2012
Index Weight
31 Dec 2012
Financials
36.6%
32.6%
Energy
12.2%
7.3%
Consumer Staples
11.3%
7.7%
Materials
9.3%
20.9%
Industrial
7.5%
7.3%
Telecommunications
6.7%
5.1%
Cash
6.4%
Consumer Discretionary
4.8%
5.6%
Utilities
3.6%
1.9%
Health Care
1.2%
4.6%
Property Trusts
0.4%
6.9%
15
Sector Performance
12 Months to 31 December 2012
(BKI Top 20 V’s S&P/ASX300 Accumulation Indexes)
100%
90%
80%
70%
60%
50%
BKI
Investment
Company
(BKI.ASX)
40%
30%
20%
10%
S&P/ASX 300
0%
-10%
-20%
Telco
Services
Financials
Consumer
Staples
Consumer
Disc.
Utilities
XKOAI
Industrials
Materials
Energy
16
Sector Performance
12 Months to 31 December 2012
(BKI Top 20 V’s S&P/ASX300 Accumulation Indexes)
100%
TPM
90%
80%
70%
60%
50%
ARP
40%
TLS
30%
APA
CBA
WBC
ANZ
MLT
NAB
20%
10%
WES
WOW
IVC
CCL
BKI
Investment
Company
(BKI.ASX)
AGK
ALQ
BHP
S&P/ASX 300
WPL
0%
QBE
-10%
MTS
NHC
-20%
Telco
Services
Financials
Consumer
Staples
Consumer
Disc.
Utilities
XKOAI
Industrials
Materials
Energy
17
Benefits of investing in BKI.ASX
 Performance - Delivering sound long term returns to shareholders.
 Low Cost - Management Expense Ratio of 18bps. No Performance Fees.
 Dividends - Predictable fully franked income stream.
 Franking Credits - 30% tax rate already paid on dividend income, tax credits
passed on directly to shareholders.
 Diversification – Exposure to most sectors of the market through well managed,
dividend paying companies.
 Simplicity – An investment in BKI.ASX provides administration simplicity.
 Structure – BKI is a Company with a closed end investment structure.
 Listed on the ASX - High levels of Transparency and Compliance, ASX Listing
Rules, Continuous Disclosure requirements.
18
19
BKI Fact Sheet
www.bkilimited.com.au
ASX Code
Listing Date
Mandate
Investment Sectors
Benchmark
Total Assets
Debt
Management Expense Ratio
Performance Fee
BKI.ASX
Research Coverage
December 2003
Morningstar
IRR
Morgan Stanley Smith
Barney
Bell Potter
Aust Listed Equities
Diversified
S&P/ASX 300
Acc Index
$644m
Evans and Partners
Baillieu Holst
Nil
0.18%
Nil
Board Members
Rob Millner
Historical Dividend Yield
4.8%
David Hall
Percentage Franked
100%
Alex Payne
Grossed Up Yield
6.8%
Ian Huntley
Dividend Distribution Frequency
Dividend Payout Policy
Dividend Reinvestment Plan
Share Purchase Plan
Half Yearly
90%-95%
Chief Executive Officer
Tom Millner
Company Secretary
Jaime Pinto
Active
Inactive
Download