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SOL - Washington H. Soul Pattinson and Company

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closing on $32.

as most of SOL holdings are listed (recent excursions into PE and credit notwithstanding) then it's not that hard to value it.

Belli noted the NTA in a recent report was about $30. Every is marked down a bit so there's a way to go?
 
Dona Ferentes said:
closing on $32.

as most of SOL holdings are listed (recent excursions into PE and credit notwithstanding) then it's not that hard to value it.

Belli noted the NTA in a recent report was about $30. Every is marked down a bit so there's a way to go?
Click to expand...

From it's last annual report. Note SOL's financial year ends on 31 July.



Obviously, we don't know its present NTA. It isn't an LIC, although some view it as having the traits on one, so it does not provide a updates throughout the FY.

One aspect to keep an eye on is how the composition of the Directors may or may not change. ASIC is mulling over the possibility of limiting the time of Directors to 10 years. Four of SoulPatts have been appointed since 2020 and the Chair (and Non-Executive) has been in that position since 1984.
 
$33.52

1H25 results were strong, demonstrating solid performance against our three key investment measures:
• Increase cash generation: Net Cash Flow From Investments increased 9.9% to $289.5 million, against a background of low growth in dividends and mixed earnings across the market. Over the past three years, NCFI has grown by 16.0% per share reflecting our ability to make smart investment decisions and adjust our portfolio opportunistically.
• Grow the portfolio: Our portfolio grew to a Net Asset Value of $12.1 billion, delivering a return of 2.4% for the half. While this was below the All Ords Accumulation Index, our defensive portfolio settings and strong balance sheet provide stability. Over the three-year period, NAV has generated a return of 12.8% p.a., outperforming the market. We remain committed to our investment style, which has been successful over the long-term.
• Manage investment risk: During the1H25, we managed risk through a combination of portfolio rebalancing and maintaining a strong cash position. Over the period, our total transaction activity was $1.9 billion. Our net cash position increased by $502 million. This brings cash and liquid income funds up to $716 million, supported by our successful capital raising in August 2024, providing us with significant funds and flexibility for future investments.

The Group Statutory NPAT increased 8.1% to $326.9 million in 1H25, with Group Regular NPAT up 18.0% to $284.8 million. Statutory NPAT includes a one-off gain from the partial sell down of Tuas, offset by some impairment expenses in Aeris and Brickworks. The increase in Group Regular NPAT reflects higher operating results from our Strategic investments and growing cash flow from the Credit portfolio.

Dividend growth and enduring value
2025 marks our 25th consecutive year of increasing dividends. The Board declared a 1H25 ordinary dividend of 44 cents per share, 10% higher than the prior corresponding period.
 
Private Markets accounted for 28 per cent of the SoulPatts portfolio at 31 January, including 14 per cent in private equity ($1.7 billion) and 10 per cent in private credit ($1.2 billion).

While 28 per cent is clearly less than listed opportunities, it is growing fast. It was 11 per cent three years ago and less than 10 per cent at the start of the decade.

Todd Barlow, Soul Patts’ CEO, says he doesn’t know how much or have a specific target, but that private markets allocation will keep going up.

“There’s no doubt you can build better businesses privately because you’re not worried about near-term earnings,” he says. “We’re trying to expand in private equity, we’re continuing to expand credit.

“I don’t know how big it gets, but I just think you get better risk-adjusted returns in alternative assets and unlisted assets. "
 
AnInvestor said:
I might be able to through a SMSF, but I've yet to come across a product that would allow me to do this which is unfortunate being so restricted within the super system.
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look further ...

Direct investment superannuation funds allow members to choose how a portion of their superannuation is invested, offering greater control over their retirement savings compared to traditional investment options. This can include investing in individual shares, Exchange Traded Funds and other assets. However, it also requires members to take on the responsibility of managing their investments and understanding associated risks.

Key Features of Direct Investment Superannuation Funds:
  • Member Choice:
    Members have the ability to select how their superannuation is invested, rather than relying on the fund's default investment strategies.

  • Variety of Investment Options:
    Direct investment funds often allow members to invest in a range of assets, including individual shares, ETFs, and other investments.

  • Increased Control:
    Members have greater control over their investment decisions, including the timing of purchases, sales, and asset allocations.

  • Potential for Higher Returns:
    Direct investment offers the possibility of higher returns if investments perform well, but also carries the risk of potential losses if investments underperform.

  • Responsibility for Investment Management:
    Members are responsible for making investment decisions, researching investments, and managing their portfolios, according to SuperGuide.

Examples of Funds Offering Direct Investment Options:
  • AustralianSuper:
    SuperGuide notes AustralianSuper offers a Member Direct investment option allowing members to invest in shares, ETFs, and other assets.

  • Hostplus:
    Hostplus provides a Choiceplus investment option that allows members to choose from a range of investment options, including shares and ETFs, says Hostplus.

  • Cbus:
    Cbus offers a Self Managed investment option, which allows members to make their own investment decisions.

  • Mercer:
    SuperGuide notes Mercer offers a Direct Investment Option (DIO) that gives members more control over their superannuation investments.

  • Vision Super:
    Vision Super offers a Direct Investment option that allows members to choose how their super is invested.

  • TelstraSuper:
    TelstraSuper offers a Direct Investment option that allows members to choose how their super is invested.

  • Australian Retirement Trust:
    Australian Retirement Trust offers a Direct Investment option that allows members to choose how their super is invested.

[[ suggest you go into Search and find a Superannuation thread, lest SOL gets polluted with off-topic banter]]
 
AnInvestor said:
I might be able to through a SMSF, but I've yet to come across a product that would allow me to do this which is unfortunate being so restricted within the super system.
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this is a slow and methodical stock ( arguably an investment vehicle )

the silver lining here is the annual report , which gives insights into the companies they have invested in ( and still hold shares in currently ) , and i have found very useful in finding solid stocks to invest it

a key risk here is the Milner Family get ousted from a strong influence in investment decisions

an alternate share if you like this style of investment is SGH ( Seven Group )

i hold both SOL and SGH
 
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