BKI Investment Company Limited

NTA AND MONTHLY REPORT-August 2017

Top 25 Investments

% of Total

Our aim is to create wealth for BKI shareholders, through an increasing fully franked dividend and capital growth.

Stock Portfolio

Business Overview

1

National Australia Bank

8.3%

2

Commonwealth Bank

8.2%

3

Westpac Banking Corp

7.2%

4

ANZ Banking Group

4.7%

5

Wesfarmers Limited

4.5%

6

Telstra Corporation

3.5%

7

APA Group

3.3%

8

Transurban Group

3.2%

9

AGL Energy Limited

3.1%

10

Woolworths Limited

2.9%

11

TPG Telecom

2.7%

12

Sydney Airport

2.6%

13

New Hope Corporation

2.4%

14

Ramsay HealthCare

2.4%

15

Invocare Limited

2.3%

16

ASX Limited

2.1%

17

IAG Limited

2.1%

18

Macquarie Group

2.0%

19

BHP Billiton

2.0%

20

Sonic Healthcare

2.0%

21

Challenger Limited

1.9%

22

Woodside Petroleum

1.7%

23

ARB Corporation

1.6%

24

Suncorp Group

1.6%

25

Flight Centre

1.3%

Cash and cash equivalents

3.7%

Total of Top 25 plus

cash and cash equivalents

83.2%

BKI is a research driven, Listed Investment Company, investing for the long term in profitable, high yielding, well managed companies. Listed on the Australian Stock Exchange (BKI.ASX) with the equity portfolio managed by Contact Asset Management, an investment in BKI gives shareholders access to a diversified Australian equity portfolio.

Net Tangible Asset Backing

The consolidated unaudited pre-tax net asset backing at 31 August 2017 was $1.57 per share. The company is a long term equity investor and does not intend to dispose of its total portfolio. If estimated tax at 30% on unrealised portfolio gains were to be recognised, net asset backing post-tax would be $1.49 per share.

All calculations are after providing for the Final Dividend of 3.70cps which was paid to shareholders on 23 August 2017.

Growing Fully Franked Dividends

BKI's Board & Portfolio Managers are shareholders in BKI. We invest for the long term and focus on creating wealth for all shareholders by keeping costs low and increasing fully franked dividends and capital growth.

As at 31 August 2017, BKI's fully franked dividend yield was 4.4% (based on the immediate past 12 Month rolling dividend** and share price of

$1.66), while the grossed up yield was 6.2% (tax rate of 30%).

Ordinary Dividends Special Dividends

0.50

7.20

7.25

7.30

1.00

6.95

1.00

6.40

6.65

1.00

6.00

6.00

6.00

5.00

5.30

5.25

4.30

2.00

BKI Dividends paid to shareholders (cents per share).

We focus on dividend payments - not generating excessive management or performance fees.

Benefits of Investing in BKI Investment Company Limited

  • High Value / Low Cost - Active, high conviction, closed end portfolio. No excessive portfolio management fees. No performance fees.

  • Tax Effective - All dividends have been fully franked.

    Company Overview

    Mandate Australian Listed Equities

  • Performance - Delivering sound returns plus dividend growth.

  • Diversification- Exposure to well managed, dividend paying companies.

    Market Capitalisation

    Investment Portfolio

    $1,026m

    $945m

  • Listed on the ASX

    ASX Listing Rules - Continuous Disclosure requirements, High levels of Transparency and Compliance.

    Size & strength - Market Capitalisation of $1.03bn.

    Cash & Cash Equivalents $36m

    Total Portfolio Including Cash $981m

    Debt $0

    Simplicity - An investment in BKI.ASX provides administration simplicity.

    MER* 0.15%

    Liquidity - Shares trade on the ASX. 14,800 shareholders.

    Performance Fee

    N/A

    Settlement T+2.

  • Experience - The Board and The Manager of BKI have over 180 years of collective industry experience (average of 26 years).

    Rolling 12 Month Dividend** 7.30cps

    Historical Dividend Yield*** 4.4%

  • Alignment - The Directors and the Portfolio Managers

are

Percentage Franked

100%

shareholders in BKI. We focus on dividend payments - not generating excessive management fees.

Management Expense Ratio (MER)

BKI's MER as at 30 June 2017 was 0.15%.

Board of Directors

Directors : Robert Millner (Chairman), Alex Payne, David Hall and Ian Huntley. Jaime Pinto (Company Secretary).

Investment Manager

Contact As set Management: Tom Millner (Director/Portfolio Manager), Will Culbert (Director/Portfolio Manager). Contact provides investment management services to BKI in accordance with the directions of the BKI Board and BKI Investment Committee.

Grossed up Yield*** 6.2%

DRP Active

Pre Tax NTA $1.57

Post Tax NTA $1.49

Share Price $1.66

Contact Us

Website www.bkilimited.com.au E-Mail info@bkilimited.com.au Tom Millner 0408 754 180

Will Culbert 0410 627 378

Jaime Pinto 02 9210 7000

www.bkilimited.com.au

Source: BKI Investment Company Limited, Bloomberg. Portfolio Performance is measured by change in pre tax NTA and is after all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends. TSR include reinvestment of dividends. TSR including franking credits are based on BKI's dividends being fully franked and the S&P/ASX300 Accumulation Index franked at 80%. Past performance is generally not indicative of future performance.

The material contained within the BKI Investment Company Limited Monthly Report (The Report) has been prepared by BKI Investment Company Limited (ABN 23 106 719 868). Figures referred to in The Report are unaudited. The Report 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 The Report 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 The Report 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. *MER as at 30 June 2017; **Includes FY2017 Final Dividend of 3.70cps and FY2017 Interim Dividend of 3.60cps *** Based on share price as at 31 August 2017. Grossed up yield based on a tax rate of 30%.

BKI Investment Company Limited published this content on 08 September 2017 and is solely responsible for the information contained herein.
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