What does the company do?

Hipgnosis Songs Fund (SONG) is a listed investment company that buys and owns the rights to music royalties. SONG owns the rights to approximately 7,500 songs performed by a diverse range of artists including Beyonce, Ed Sheeran, Eurythmics and Justin Bieber.

Why do we like the investment?

Through the collection of royalty revenues on the songs in its portfolio, which typically last for the life of the author/artist plus another 50+ years, SONG is targeting a 10%+ net total return inclusive of a 5% dividend yield. One of the key attractions of the investment is that the primary return driver, mainly the growth in music streaming platforms such as Spotify, Tencent and Apple Music, is largely uncorrelated to other return drivers within the Company’s portfolio.