Double counting forces Hipgnosis to further slash portfolio value

‘Almost certainly’ overcharged fees

Hipgnosis Songs fund (SONG) has further amended its portfolio value, with the board trimming the operative net asset value by 7.6% following the “identification of an error due to the double counting of accrued revenue”.

The board laid the blame with investment adviser Hipgnosis Song Management and claimed it had previously raised concerns with the manager during the recent preliminary valuation conducted by Shot Tower Capital. While the adviser has now agreed with the board over the issue, it has been accused of "almost certainly" overcharging its investment advisory fees, given the operative NAV is a "key valuation metric in defining the market capitalisation of the company". Hipgnosis Songs investment adviser refuses to indemnify trust against potential litigation damages The 7.6% reduction is b...