BKI Investment Company Limited

BKI Investment Company Limited (BKI) is an Australian Listed Investment Company (LIC) listed on the Australian Stock Exchange (ASX) with the ticker code BKI. Established in 2003, BKI has been actively managing shareholder funds for over 20 years. The company specialises in Australian equities, with a focus on large and mid-cap companies.

BKI Investment Company is externally managed by Contact Asset Management.

BKI Investment Company Limited (BKI) has a substantial history, having been actively managing shareholder funds for 20 years. Over this extensive period, it has built a reputation as an experienced player in the LIC landscape.

Currently, BKI Investment Company has a market capitalisation of approximately $1.4 billion, indicating its presence as a significant LIC with a focus on Australian equities.

When evaluating BKI Investment Company Limited (BKI) as an investment choice, consider these key metrics:

• Long-term performance: Assess BKI's long-term performance and its ability to generate an increasing income stream for distribution to shareholders in the form of fully franked dividends.
• Dividend reliability: Examine BKI's track record of paying attractive dividends to shareholders, both in terms of net and gross dividend yields.
• Underlying holdings: Understand the portfolio composition of BKI, which primarily consists of quality, profitable Australian companies with a history of and an expected continuation of paying attractive dividends.
• Fees: Consider the cost of investing in BKI. The Management Expense Ratio (MER) for BKI is calculated at 0.17%, indicating relatively low costs for investors.

BKI Investment Company's objective is to generate an increasing income stream for distribution to shareholders in the form of fully franked dividends, to the extent of available imputation tax credits, and also deliver long-term capital growth. Its focus on quality Australian companies and a long-term investment approach make it a compelling choice for investors seeking income and capital appreciation.

A Listed Investment Company (LIC) is one type of investment fund structure (i.e. shareholder funds pooled together and invested together, either actively by a manager, or passively). Other types of investment funds include Exchange Traded Funds (ETFs) (which can be both actively managed or passive), Listed Investment Trusts, or Managed Funds.

The different structures have their own positives and negatives, which are dependent on the goals of the investor and their own individual investment structure.

Some of the benefits of the LIC structure (the structure of BKI) include:

• It's a closed-end investment vehicle: Meaning the manager has a fixed pool of capital to invest with a long-term mindset, and doesn't have the risk of fast redemptions by investors in a time of market panic.
• They can smoothen out income to the investors: Which can be beneficial for both tax efficiency and emotional mindset, due to being able to retain profits over time (as compared to the trust structure, which must distribute income and crystallized capital gains to the investor in that financial year).
• The income will most likely be in the form of fully franked dividends: Which is an attractive form for Australian retirees due to the franking system in Australia. Since LICs are companies themselves and pay tax in Australia on profits, they receive franking credits paid on the tax they pay, in addition to the franking credits they receive from their investment portfolio. Well-managed LICs ensure their franking credit reserves are sufficient to pay future fully franked dividends (see 'franking reserves' chart above).