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  • 1 year later...

In reply to: topic-starter on Tuesday 22/06/04 04:35pm

hmm... about a year ago I chose not to participate in the BKI SPP and I've regereted it because it did quite well over the last year. Now they're offering another SPP and I'm wondering if there's anyone here holding who may be participating.

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  • 5 weeks later...

Particiapting in the SPP was kinda a no brainer... when it came out, the SP was around $1.45. With the SPP set fo $1.33, you could effectively sell your shares and subscribe in the SPP, thus making a quick gain.


BKI has done well for me. I came over from my holding in PSI (which went nowhere).


It invests in bluechips, and is quite diversified. I was thankful they divested their Telstra holdings early in the piece...

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  • 3 years later...
  • 9 years later...
BKI Investments Company will pay shareholders a special dividend in response to concerns about Labor's franking credit policy, which would see cash refunds arising from imputation credits scrapped.


BKI said it would pay the fully franked dividend of 1.5Ãâہ¡ÃƒÆ’‚¢ per share in addition to its interim dividend of 3.625Ãâہ¡ÃƒÆ’‚¢, explaining that it had been "overwhelmed by the level of angst" expressed by investors.


The company announced the dividend alongside its first half financial results, which showed a 12 per cent rise in its net operating result, its preferred measure of profit, to $25.5 million.

- another LIC doing it right by their 'largely retired' shareholder base. And expect SOL to do same in Apr.
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  • 2 years later...

BKI Investment Company Limited (BKI) today announced its 2021 Full Year results.



Australia's performance in controlling the COVID 19 epidemic and economic stimulus packages was of significant benefit to the Australian household and consumer during the last year. The Governments substantial economic support packages and the banks loan deferrals were very well received and placed the economy in a strong position.

We were concerned in February, when BKI presented first half results, that the forecast growth in unemployment and the completion of payment deferral programs would create a headwind for the Australian economy. Fortunately, these issues were not as severe as we first thought and did not materially impact the local economy. The severe fluctuations in global share markets we experienced in FY2020 and early in FY2021 dissipated with the backdrop of a stronger global economy.


However, many Australian equity investors continued to receive lower dividends than they received 12 to 18 months ago. These cuts impacted BKIs results in FY2021, with Ordinary Investment Revenue down 17% to $39.7 million. The result was impacted by lower ordinary dividends received over the last year from New Hope Corporation (down 73% on the previous corresponding period), Invocare Limited (down 70% on the pcp), Woodside Petroleum (down 62% on the pcp), Commonwealth Bank (down 42% on the pcp), AGL Energy (down 26% on the pcp) and Transurban Group (down 22% on the pcp).



BKI realised $0.3 million from the trading portfolio, after participating in some minor trading positions. BKIs interest received was only $0.1 million, down 82% on FY2020 due to the extremely low interest rates on offer. BKI Net Operating Profit After Tax, before special investment revenue, was $35.7 million, a decrease of 14% over the previous corresponding period. BKI basic earnings per share before special investment revenue decreased 15% to 4.83 cents per share.


...---... ...---...

all very gloomy... but the market looks ahead.

In the last six-month period, BKI received increased dividends from major investments including Macquarie Group (up 155% on the pcp), Fortescue (up 71% on the pcp), Rio Tinto (up 48% on the pcp), BHP Group (up 34% on the pcp), National Australia Bank (up 30% on the pcp), Harvey Norman (up 20% on the pcp) and Wesfarmers Limited (up 13% on the pcp). .. The outlook for dividends received from BKI investments should continue to improve in the periods ahead.
and the bit I like looking at, to see what big players are doing (takes action a few nautical miles out to avoid any icebergs)


Portfolio Movements


BKI made $83 million worth of sales during the first half of this financial year, including exiting positions in Westpac Banking Corporation, Sydney Airports, IAG Limited, SEEK Limited and selling a small parcel of New Hope Corporation. These sales were prompted by the significant reduction in dividends received from these companies during the period. BKI realised a further $81 million worth of sales in the second half of the financial year. This included exiting our positions in AGL Energy Limited, Lend Lease, NAB Convertible Notes and Inghams Group, as well as slightly trimming positions in Commonwealth Bank and Transurban Group.


These divestments allowed BKI to reinvest capital into other positions within the portfolio to offset further declines in Ordinary Income. BKI invested $95 million during the first half and $65 million during the second half of FY2021. The largest investments over the year were APA Group, Transurban Group, Fortescue Metals, Rio Tinto Limited, Commonwealth Bank, National Australia Bank, BHP Group, Amcor, Harvey Norman Holdings and Equity Trustees. A new position was established in Metcash Limited in the second half of the year, and BKI also now has a holding in Endeavour Group Limited following its demerger from Woolworths Group Limited in June 2021.


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  • 2 months later...

the BKI Investment Committee was quite active throughout the year in our portfolio management.


To end of June 2021: BKI increased exposure to a number of high quality companies across a range of sectors. The most significant purchases included APA Group, Transurban Group, Commonwealth Bank, National Australia Bank, BHP Group, Amcor and Harvey Norman.

We introduced 6 new positions into the BKI portfolio over the year. Fortescue Metals, Rio Tinto, IPH Group and Metcash all offered significant dividend yields at the time of purchase. Both Tuas and Endeavour Group were positions we inherited following corporate activity with demergers from head companies TPG and Woolworths respectively.


We slightly reduced our exposure to New Hope Corporation, Commonwealth Bank and Transurban Group at various points over the year.

And we exited a few positions completely where the investment case had changed. We believed that these changes were going to place pressure on the company to be able to provide sustainable dividends going forward, with some of these dividends being cut completely. These positions included Westpac Banking Corp, AGL Energy, Sydney Airport, IAG Limited, LendLease, Inghams Group and Seek Limited.

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  • 2 months later...

there is some speculation that BKI will be absorbed into SOL, now that Milton has. In a recent interview with journalist/ portfolio manager Matthew Kidman, the SOL chair seemed to indicate it was not a priority, but did not close the door completely.

Matthew Kidman
And with your other investments, you have got BKI, you have got Pengana, and there are five or six of them, do they come under the same scrutiny as what you are saying there? Milton was a lot bigger.
Rob Millner : Yeah. Yeah.
Matthew Kidman : Or do you have ambitions?
Rob Millner : No. The Milton portfolio now will be run internally by Brendan O'Dea and his team, who are the Milton team. BKI is a separate investment that came out of when Brickworks bought out Bristile. We needed to raise some equity, and again, I mentioned before the dividend income out of Brickworks. So we raised a few more dollars and floated that off into the market at $180 million. It is now worth about $1.3 billion.

Matthew Kidman
It has been a tremendous success.

Rob Millner
Yeah. So,  it is a smaller investment that we have got. I do not know whether they are going forward with things like Pengana and Iron Bark and those things, whether they will all come into one. But we've just got to see how that all plays out.

also this is a comment further on:

M.K. So, there are quite a few people depending on you guys for those dividends. That is what they are there for.

Rob Millner
As you know, you have been around the investment company, the majority of the older people have their money in something they can understand like an LIC, and they are very dependent on that income.
And unfortunately, this time last year, they all got smashed because some of the banks did not pay a dividend, and BHP. I know BKI, for example, is going to make more in this half they made the whole year, last year, because we have had these increases in dividends.


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  • 2 weeks later...

and Half Yearly out.  MER still at 0.16%pa. performing as a LIC should.

During the first half of FY2022, we added to existing positions, all of which offered significant grossed up dividend yields. Main investments were made in Aurizon Holdings, Rio Tinto, BHP Group, Fortescue Metals, Harvey Norman, APA Group, Pendal Limited, Suncorp Group and Metcash Limited. BKI accepted the Washington H. Soul Pattinson (SOL) Proposal to merge with Milton Corporation, which was implemented on the 5 October. BKI now holds 391,908 shares in SOL, accounting for 0.9% of the portfolio.  
Endeavour Group was traded out of the portfolio after receipt as a demerger dividend from Woolworths. BKI also traded the Transurban Rights received as part of the entitlement offer following the successful bid for the Westconnex Assets.    BKI exited and reduced the weighting in some positions over the half. The exposure to ASX Limited was reduced after the company announced a fall in profits, a cut in dividends and a poor delivery of their capital expenditure program. BKI reduced positions in Commonwealth Bank, Woolworths Limited and Metcash Limited following their off market buybacks. BKI exited positions in Brambles, Platinum Asset Management and Magellan Financial, with these sales prompted by a reduction in our confidence for these companies to increase dividends over the short to medium term.    


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