1. Diversification

Investors gain exposure to a range of underlying assets through a single investment thereby reducing the investment risk of 'putting all of their eggs in one basket'.

2. Compelling track record

We have outperformed the market average over the past one, five, ten and 20 year periods.

3. Strong financial position

Gowing Bros. has over $130 million in total assets and $15 million of bank debt (which is generally only incurred for property investments on a short term project specific basis).

4. Motivated Directors and management

Directors and management are shareholders, providing a strong incentive to strive to maximise shareholder returns.

5. Capital appreciation

As the value of our net assets rises over time, it can be expected that the market price of our shares will rise as well.

6. Consistent returns

We have paid dividends every year since inception including numerous special dividends and bonus issues, and have achieved consistent growth in our capital base.

7. Fully franked dividends

Our dividends are generally paid fully franked, reducing the amount of tax payable by shareholders on income earned.

8. Special dividends

A feature of our shareholders' returns has been the payment of special dividends in addition to our ordinary dividends.

9. Taxation advantages

For taxation purposes, we are classified as a Listed Investment Company (LIC), which allows us to pass on CGT concessions to shareholders.

Individuals, trusts and partnerships may be entitled to claim a 50% deduction for the LIC capital gain component of dividends received. Complying superannuation funds and life insurance companies may be entitled to a 33.3% deduction of the LIC capital gain dividends received.

A LIC capital gain is essentially a taxable capital gain that would qualify as a 'discount' capital gain if Gowing Bros. were an individual (i.e. capital gains on assets held for more than 12 months).

Gowing Bros. paid its first LIC capital dividend of 3.5c per share in 2001. Assuming that a shareholder received $100 worth of fully franked dividends from their shareholding, the LIC tax benefit would be as follows:

10. Dividend reinvestment plan and bonus share plan

Our DRP allows shareholders to acquire shares without transaction costs.

11. Share buy-backs

If we cannot find opportunities in which to invest our surplus capital then a better use of our money is to buy back our own shares. Higher earnings per share may lead to an increase in the price of a company's shares.

12. Strong network of alliances

Our presence in the broader Australian business and investment community for 135 years has given us a valuable network of alliances. We gain entry to the management of our investee companies and are often approached to participate in investments prior to or at the initial public offering stage.

13. Transparency in managed investment

The Directors have endeavoured to increase the transparency and regularity of reporting within the context of the new ASX disclosure guidelines.

14. A low cost investment

On average, we incur a relatively low rate of management expense compared to similar products.

15. Convenience

Our shares are traded on the ASX and can be bought and sold through an accredited stockbroker and many financial planners.