Investors are raising questions about music royalty trusts that have been firm favourites as a diversifier, as the Neil Young row with Spotify throws into question the control and valuation of music rights.
In January last year, the Hipgnosis Songs Fund announced it acquired 50% of the worldwide copyright and income interests of Neil Young's entire catalogue. At the time, Merck Mercuriadis, founder of trust, revealed just how exciting the acquisition was for him personally, saying: "I bought my first Neil Young album aged seven. Harvest was my companion and I know every note, every word, every pause and silence intimately. Neil Young, or at least his music, has been my friend and constant ever since." However, as Neil Young pulled his songs from Spotify, investors in the trust scratched ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
