Hipgnosis pulls dividend as expected retroactive royalties halve

‘Adds significant uncertainty’

Hipgnosis Songs fund has withdrawn its proposed interim dividend on news its independent portfolio valuer has “materially reduced” its expectations of retroactive royalty payments.

According to a regulatory statement, the embattled investment trust has seen its expected retroactive payments more than halve, falling 54% from $21.7m to $9.9m, as at 31 March 2023. Hipgnosis Songs music catalogue sale comes under scrutiny as continuation vote looms This comes as valuer Citrin Cooperman notified the trust on Friday (13 October) that, as a result of a decision made by the US Copyright Royalty Board in relation to royalties spanning 2018-2022 (CRB III), it would lower its valuation of the portfolio as of 30 September 2023. As such, the Hipgnosis board expects to rec...