In this interview, Barlow talks dividend sustainability, the investment team’s approach to private assets, as well as the risks Soul Patts foresees on the horizon.
Soul Patts is axing equities for alternatives amid a worsening economic climate.
Late last week, Washington H. Soul Pattinson (ASX: SOL) announced it had axed $1.4 billion in equities during the full year ending 31 July 2023, and warning the market of worsening economic conditions to come.
The conglomerate – which celebrated its 120th anniversary as a listed company this year – noted it had redistributed much of this capital towards alternatives such as private equity and “structured yield investments” like private credit – both of which, are typically uncorrelated to equity markets.
It comes as the Reserve Bank of Australia keeps interest rates on hold at 4.1% in October, while this week, the yield on 10 and 30-Year US Treasuries hit 16-year highs. The last time the yield on Australian 10-Year Government Bonds was this high was in 2011.
In this interview, Barlow talks dividend sustainability, the investment team’s approach to private assets, as well as the risks Soul Patts foresees on the horizon.
Plus, he also shares why the team is “very bullish on uranium”, as well as three future-facing themes Soul Patts has identified as areas of long-term opportunity.
Note: This interview was filmed on Tuesday 3 October 2023.