Company Name % of Total Stock Portfolio
1 Commonwealth Bank 9.3%
2 National Australia Bank 9.2%
3 Westpac Banking Corporation 7.3%
4 Telstra Corporation 5.80%
5 ANZ Banking Limited 4.7%
6 TPG Telecom Corporation 4.30%
7 BHP Billiton Limited 4.30%
8 Wesfarmers Limited 4.10%
9 APA Group 3.1%
10 New Hope Corporation 3.0%
11 Woolworths Limited 2.90%
12 AGL Energy Limited 2.1%
13 Transurban Group Limited 2.1%
14 IAG Limited 1.90%
15 Invocare Limited 1.90%
16 Suncorp Group Limited 1.70%
17 Woodside Petroleum Limited 1.60%
18 Ramsay Health Care 1.50%
19 ASX Limited 1.40%
20 Primary Healthcare Limited 1.40%
21 ARB Corporation 1.30%
22 Sonic Healthcare Limited 1.30%
23 Coca-Cola Amatil Limited 1.20%
24 Brambles Limited 1.20%
25 Bank of Queensland 1.10%
     
  Cash and cash equivalents 6.4%
  Total of Top 25 including
cash and cash equivalents
86.0%

Objective

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

Investment Strategy

BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. An investment in BKI gives shareholders access to a diversified equity portfolio across most sectors of the market. BKI is managed for the benefit of shareholders, not charging external portfolio management fees or performance fees.

Net Tangible Asset Backing

The consolidated unaudited pre tax net asset backing at 30 June 2015 was $1.65 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 $1.53 per share.

Dividends

BKI aims to generate an increasing income stream in the form of fully franked dividends, to the extent of available imputation tax credits, through long-term investment in a portfolio of assets that are also able to deliver long term capital growth to shareholders. All dividends paid have been fully franked.

As at 30 June 2015, BKI’s fully franked dividend yield was 4.2% (based on the immediate past 12 Month rolling dividend** and share price of $1.665), while the grossed up yield was 6.0% (based on a tax rate of 30%).

Management Expense Ratio (MER)

BKI’s MER as at 31 December 2014 was 0.16%. BKI does not charge shareholders external management or performance fees.

Board and Management

Directors: Robert Millner (Chairman), Alex Payne, David Hall and Ian Huntley.
Management: Tom Millner (CEO), Will Culbert (Senior Investment Analyst) and Jaime Pinto (Company Secretary).

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