BKI - BKI Investment Company

[Belli]

Your lack of understanding is astounding.

If you believe an ETF such as VAS or STW only increase due to inflationary effects then BKI is not a good deal as the management team, ie Contact Asset Management, has not done very well at all. So much for you views inflation is the driver for an ETF. BKI seems to have done an extremely good job avoiding any such effect.

Anyways I don't care where you place your funds, whether you make heaps or go bankrupt. What is annoying and potentially dangerous to newer investors who come across your posts is you giving the impression you know what is what when you obviously don't.

By the way, Jack Bogle wasn't involved with ETFs as you incorrectly imply. That fact alone demonstrates your lack of knowledge.

 

[Belli]

Vanguards approach to security lending.

https://intl.assets.vgdynamic.info/intl/australia/documents/research/via-securities-lending-whitepaper-2018.pdf

And its PDF

https://www.vanguard.com.au/adviser/products/documents/10927/AU

 

[Greynomad99]

Hmm - some robust views here fellows. As a chartist I don't worry myself with the in's and out's of many of the issues raised here, but for what it is worth I had a quick look at BKI.
Price has been rising in a price channel where it seems to have bounced off the top boundary and is likely headed for the lower boundary - probably around $1.55
Historically, BKI has been losing value since 2015 and while there have been 3 medium term buying opportunities over that period, it suggests to me that as a LIC they aren't much chop as a long term hold. However, if they do fall back to around $1.55 and bounce, there is perhaps an opportunity for a profitable short term trade. Getting above that dashed blue overhead long-term resistance line would be a big ask however.

 

[Belli]

Hmm - some robust views here fellows

He he. More a matter of strongly objecting to someone, when presented with facts, distorting those to fit their own reality and then presenting it as if it is reality. To name but two:

Equating a passive index fund to an actively managed fund = false
Raising "key person risk" for index funds when there isn't a "key person" involved = false

I'm out of here anyway. Just hope no one applies the suggestions of the dude.

 

[divs4ever]

BKI certainly don't have the pizzazz of several other rivals , but MLT will soon be taken over releasing some more potential buyers onto the market , and let's face it trying to gouge out dividend returns can be hard work for the aggressive-style managers , and probably a matter of luck for the long term hold style managers ( who can pick which companies will have a take-over approach next )

luckily some fund managers believe in div. smoothing , and have some cash held back for the rough moments , but how can those div. reserves last some have enough for a year or two i have seen one claim of 3 years worth .

and capital gains look nice , but unless you sell surely they don't mean much , or am i the outlier who doesn't borrow against the share holding ( Commsec will lend 65% against BKI ) ??

one thing i do worry about is we might soon have a scarcity of good solid companies listed outside the top 100 , and that might make a fund manager's job tough as well

 

[Dona Ferentes]

Half yearly out

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.

 

[divs4ever]

thanks i missed this .. slept in late , and the laptop needed updating

i am surprised they exited EDV , but not surprised they reduced WOW

cheers

 

[InsvestoBoy]

BKI is not a good deal as the management team, ie Contact Asset Management, has not done very well at all.

I think they paid it out as dividends @Belli ...they've done alright.

 

[Dona Ferentes]

Half yearly out. LIC plays it steady as she goes.

BKI Investments said net profit fell 34 per cent to $36.8 million in the half year ended December 31.

Operating profit rose 13 per cent to $35.1 million in line with a 13 per cent lift in earnings per share to 4.48¢.

It will pay an interim dividend of 3.7¢ per security, up 6 per cent on the year-earlier period.

The LIC is a significant investor in Telstra, New Hope Coal, Woodside, and Transurban.

 

[divs4ever]

Half yearly out. LIC plays it steady as she goes.

BKI Investments said net profit fell 34 per cent to $36.8 million in the half year ended December 31.

Operating profit rose 13 per cent to $35.1 million in line with a 13 per cent lift in earnings per share to 4.48¢.

It will pay an interim dividend of 3.7¢ per security, up 6 per cent on the year-earlier period.

The LIC is a significant investor in Telstra, New Hope Coal, Woodside, and Transurban.

plus a 'special div.' of 0.5 cents ( if i read the presentation correctly )

Dividend Information
The BKI Board has declared an interim ordinary dividend of 3.70 cents per share and an interim special dividend of 0.50 cents per share, both fully franked at the tax rate of 30%.
The ex-dividend date is Friday 10 February 2023, and the Record Date for determining entitlements to the dividends is Monday 13 February 2023.
The dividends will be paid to shareholders on Tuesday 28th February 2023.
Total dividends paid for the half year of 4.20cps is up 5% on last year.
Including the payment of today’s dividends, BKI has paid out $922 million or $1.27 per share in dividends and franking credits to Shareholders since listing.
Using the FY2022 Final Dividends and FY2023 Interim Dividends, BKI’s historical grossed-up dividend yield is 6.9%, based on a tax rate of 30% and a share price of $1.795, as at 31 December 2022.
The BKI Board confirmed that BKI’s Dividend Reinvestment Plan (DRP) will be maintained, offering shareholders the opportunity to acquire further ordinary shares in BKI.
The DRP will not be offered at a discount. The last day to nominate for participation in the DRP is Tuesday 14 February 2023. To complete a DRP form please follow the following link:

( i hold BKI but do not participate in the DRP )

for those that are 'climate change cynical ' ( like me ) go to the BKI presentation and see how ESG is addressed in it

 

[Belli]

My, my. So BKI decides to offer an SPP on the same day as the Big Daddy announces its results.

 

[InsvestoBoy]

BKI nice enough to do weekly NTA updates, trading at a slight discount...they don't do a pretty chart.