AMSTERDAM, April 11 Dutch pension fund ABP has
made new music investments in a deal worth 126 million pounds
($249 million) as it bought a music company to diversify its 220
billion euro portfolio, ABP's asset manager APG said on Friday.
APG said in a statement it agreed to buy Boosey & Hawkes, a
music publisher and manufacturer of musical instruments, from
private equity firm HgCapital Trust (HGT.L).
APG made the acquisition through ABP's joint venture Imagem
Music, an investment fund jointly owned with Dutch music
publisher CP Masters, giving Imagem publishing rights for
artists such as Stravinsky, Rachmaninoff, and Steve Reich.
ABP, the world's third-biggest state pension fund after
Japan's and Norway's, in February bought publishing rights for
artists like Justin Timberlake, Kaiser Chiefs, and Beyonce
through Imamgem in deal with Universal Music Group worth 140
million euros ($221.5 million).
Music publishing, which can draw revenues from sources such
as television, advertising and video games, has become
increasingly coveted by investors who are attracted to its
steady cash flow and stability.
"Intellectual property rights, which include music
publishing rights, are a profitable investment category for us
with attractive qualities for a long term investor focused on
absolute, real returns," Ronald Wuijster, head of strategy and
research at APG, said in the statement.
ABP, which manages pensions for about 2.6 million Dutch
civil servants and retirees, expects to make new investments in
music, an APG spokesman said, but he declined to give details.
CP Masters, which has a small minority stake in Imagem,
manages the music rights Imagem owns.
(Reporting by Gilbert Kreijger; editing by Rory Channing)