First State Investments
First State Investments | Hedge Fund Notes
The following piece on First State Investments is being published as part of our daily effort to track hedge funds in the industry. To review other hedge fund research notes please see our Hedge Fund Tracker Tool.Investors may be fleeing mainstream assets such as equities, bonds, property and hedge funds, but an innovative new fund has raised enough money for an initial close.
First State Investments’ Media Works fund has attracted $130m (£88m, €103m) from institutional investors and private wealth managers in the depths of the downturn.
The fund has acquired the copyright to more than 26,000 songs from artists ranging from John Denver to The Ramones and will earn a royalty fee every time they are played commercially. With leverage of up to 50 per cent, First State expects to generate minimum returns of 15 per cent a year, net of fees, including a dividend of 8-10 per cent.
“We are proud of the fact that in this environment we have raised a significant amount of money from institutional investors across markets,” said Charlie Metcalfe, chief executive of First State, the European arm of Australia’s First State Global Asset Management. Source
