Lauren Hardy, PORTFOLIO ADVISER, 05 MARCH 2024:
Investors in Hipgnosis Songs Fund (SONG) have lost more than £1.2bn over the 12 months to the 4 March 2024, with its share price having collapsed by 65% from £1.61 to 56p over the period.
This comes following an appraisal conducted by Shot Tower Capital published yesterday (4 March), which placed a fair market value on SONG’s portfolio of between $1.8bn (£1.4bn) and $2bn as at 1 March 2024. This compares to a valuation of $2.6bn at the end of September last year, and means the NAV per share has fallen from $1.74 to $1.17 over the last six months alone.
James Carthew, co-founder and head of investment company research at QuotedData, told Portfolio Adviser: “The share price has long been indicating that shareholders did not believe the Citron Cooperman valuation. Valuation is as much art as science and it may be that Shot Tower have been too pessimistic. The truth of this will be seen if and when bidders emerge for the portfolio.
“The share price collapse is probably more reflective of shareholders’ loss of future dividend income than the publication of the new NAV estimate.”
Investors in SONG include impact firm CCLA, which is the largest UK manager of charity funds and is the investment manager for the Church of England CBF funds. The fund range manages £3.4bn assets for the church and £13.7bn for its clients overall, according to its website. Alongside two recently-launched UK retail funds, CCLA predominantly manages money for non-profit clients, offering pooled investments for trusts, foundations, and voluntary and community groups – alongside religious organisations.
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