Investec reiterates 'Buy' recommendation for Hipgnosis Songs fund

‘Drastic actions’ required

Valeria Martinez
clock • 2 min read

Investec has retained its ‘Buy’ recommendation for the £2.5bn Hipgnosis Songs fund following the release of its FY23 results, but noted that “drastic actions” are required ahead of its five-year continuation vote in September.

The move follows the announcement on Thursday (13 July) that the fund was considering strategic options, which may include the potential strategic sale of catalogues of songs, to narrow its deep discount to NAV. The London-listed investment trust, which launched in 2018, is currently trading at a 54.5% discount, according to data from the Association of Investment Companies.  In its results for the financial year to 31 March, the fund reported its operative NAV, which reflects the fair value of the music catalogues as per an independent valuation, was $1.9153, up 3.6% over the year. ...

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