In a recent podcast episode , I chatted with Tom Milner, Portfolio Manager at Contact Asset Manager, to explore the evolution and investment strategies of his firm.
As they commemorated the 20th anniversary of BKI Investment Company’s (ASX: BKI) listing in 2003, Tom detailed the company’s journey from a $172 million market cap to an impressive $1.4 billion today, alongside the milestone of distributing over $1 billion in dividends and franking credits.
My discussion with Tom delved into his integral role in BKI’s growth, from serving as CEO to co-founding Contact Asset Management with Will Culbert in 2016, showcasing a deep commitment to long-term value creation.
Tom elucidated on BKI’s strategic advantage, particularly its closed-end structure, which provided the agility to make opportunistic purchases during market downturns, such as the recent COVID-19 crisis. This approach has been instrumental in BKI’s ability to invest in a mix of small and mid-cap companies, fostering relationships with businesses like New Hope Group , TPG, and Sonic Healthcare, and supporting their growth over decades.
A fascinating aspect of our conversation was the origin of the name “Contact Asset Management,” inspired by a successful racehorse co-owned by the ancestors of Tom and Will. This story not only highlights the deep personal connections behind the firm but also mirrors their investment philosophy of endurance and strategic foresight.
Throughout our discussion, Tom emphasised the importance of aligning with like-minded investors and leveraging the stability of BKI’s closed-end structure to navigate through market cycles without succumbing to the short-term pressures. He also touched upon the impact of digital transformation and AI on investment strategies, showcasing how companies like Sonic Healthcare have leveraged technology to enhance operational efficiency and profitability.
The conversation also covered the critical role of dividends in BKI’s investment strategy, reflecting on the importance of dividend-paying companies within their portfolio and the broader implications of dividends and franking credits for investors across various life stages.
As we wrapped up our discussion, Tom shared his optimistic outlook for Australia’s economic future, buoyed by the nation’s diverse sectors and the consistent inflow of superannuation funds into the market, offering a solid foundation for BKI and Contact Asset Management’s continued success.
Investors can listen to the full podcast below.