The concept of music royalties as a smart alternative investment is getting traction in both the music and investor press.
Institutional investors have come to see publishing as an asset that offers not only stability, but the potential for significant gains at a time when low interest rates have reduced bond yields. Publishing rights are also considered a countercyclical investment, holding their value if prices for assets like equities and real estate fall.
He added that Spotify is still “early on our journey” and that he believes “at least half the world’s population will be listening to some sort of audio service” in the years to come.
If we accept that the policy response to coronavirus is likely to be inflationary, an environment that erodes the value of fixed income, it implies that a large equity allocation is needed at the heart of a retirement portfolio. But this alone will not deliver a good enough return, or sufficient diversification, hence a need for alternative investments.
Alternatives are now a $10 trillion market, and are expected to reach $14 trillion in 2023, according to Preqin research.