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  • Trading Update: 22 October 2019

Trading Updates  22/10/2019

Trading Update: 22 October 2019

Purchased: Hipgnosis Songs Fund Limited

Purchased: Hipgnosis Songs Fund Limited

We have participated in an equity issue by Hipgnosis Songs Fund Limited, the first UK investment trust offering investors the opportunity to invest in recorded music copyrights and related intellectual property.

The music industry has been transformed by the explosive growth of music subscription services such as Spotify and Apple Music. Following fifteen years of declining sales as illegal downloading cannibalized physical music sales (CDs, vinyl etc.), industry revenues returned to growth in 2015 and digital streaming now accounts for over almost 50% of global recorded music revenue (source: IFPI). Since 2012 streaming revenues have grown by almost 800% from $1bn per annum to $8.9bn, and now generate almost twice as much income as physical sales.

Hipgnosis was founded by 30-year industry veteran Merck Mercuriadis, a highly respected industry executive and artist manager that was formerly Chief Executive of Sanctuary Music and has managed artists as diverse as Iron Maiden, Guns N’ Roses, Elton John, Nile Rodgers and the Pet Shop Boys. Since listing on the London Stock Exchange last year, the company has successfully acquired the rights to 28 catalogues comprising over 7,000 songs, including over 4,000 top 10 hits and 15 Grammy Award winners, performed by globally successful recording artists including Beyoncé, Rihanna, Coldplay, Ed Sheeran, Bruno Mars, Maroon 5, Diana Ross, Chic, Sister Sledge, Emili Sandé, Mariah, Carey, Justin Bieber, Otis Reading, Al Green, Journey, Santana, Eurythmics, Tom Petty & the Heartbreakers, One Direction, and Justin Timberlake.

With a focus on proven hit songs and proactive catalogue management to drive growth in licensing income and administration efficiencies, Hipgnosis aims to generate a dividend yield of 5% and a total return of 10% per annum. The fund typically invests in song writing and publishing rights that entitle the owner to receive payments every time a song is turned into a physical copy, performed live, played on the radio, downloaded, streamed, sampled, covered, or licensed for use in TV/movies, video games or advertisements. With limited correlation to financial markets and the economic cycle, we believe music royalties are a genuine alternative asset class that can provide an attractive, long-term income stream and direct exposure to the structural growth of digital music services.

Cornelian Investment Team

Trading Updates  01/11/2019

Trading Update: Wizz Air

We have bought Wizz Air for the risk managed fund range.

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Trading Updates  11/09/2019

Trading Update - 11 September 2019

Further trades have taken place in the funds in September. Purchased: Allianz Strategic Bond Fund and Blackrock Emerging Markets Fund. Sold: Brown Advisory Latin American Fund and Vanguard Emerging Markets ETF and BT Group.

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