I often talk about funds – particularly tracker funds – and you can get a managed fund for virtually every topic, market place, geographical area – or activity!
A managed fund is where someone takes responsibility for buying shares or assets in a certain area and then selling part of that fund to customers and Hipgnosis are fund managers who manage a music fund and their latest purchase is Shakira’s back catalogue of songs.
Apparently there are 145 songs and the Hipgnosis fund now has the rights for all of them and will collect money every time one of these songs are played.
They won’t say how much they paid and that’s reflected in the fact that the fund share price stayed flat after the announcement as potential purchasers can’t work out if it’s a good deal or not and that’s part of the issue when dealing with these unusual type of funds where the general public don’t know an approximate value of an asset, and for the most of us we’re better off sticking to mainstream general funds or funds that track a whole market or index.
If people had thought that the Shakira deal was a good one then the fund share price would have risen, and if they thought it poor then the fund price would have fallen but it did neither suggesting that people didn’t know quite what to make of it – or maybe they just don’t know any Shakira songs!