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A banner of the late Michael Jackson - Source: Reuters -
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For Dutch pension fund ABP, Michael Jackson's death could be
good for business.
The passing of the man called King of Pop last week has created a
run on his music, which is partly owned by Dutch state pension fund
ABP.
It is the world's third-largest state pension fund after Japan's
and Norway's.
"There are always certain songs that for whatever reason, in this
case tragic, suddenly become very popular. The last fact is a basis
for the investment," an ABP spokesman said.
ABP bought two music catalogues last year, including the rights to
some Michael Jackson songs like You Are Not Alone, according to the
website of Imagem Music Group, which manages the music assets for
ABP.
Apple Inc's iTunes, the biggest music retailer in the United
States, reported last week that Jackson albums accounted for the
top nine sellers, led by a hits package and his 1982 blockbuster
Thriller.
The day after Jackson's death, online retailer Amazon.com Inc. sold
more Jackson merchandise than in the prior 11 years, an Amazon
spokesman said last week.
The ABP spokesman declined to say what return the fund expects on
its Michael Jackson songs but ABP said last year it expected its
total portfolio of music rights to return just over eight percent
annually.
ABP bought its pop music portfolio for 140 million Euros last year
from Universal Music Group, while it paid 126 million pounds for
the classical music portfolio of private equity firm HgCapital
Trust.
Each time a CD is sold, or a radio station plays a song ABP owns,
the fund makes money.
ABP, which invests in music to diversify its 173 billion Euro ($383
billion) portfolio, also holds the rights to pop artists such as
Justin Timberlake, Beyonce, Kaiser Chiefs, and classical composers
such as Stravinsky and Rachmaninov.
ABP was interested in buying the Beatles music collection that
Michael Jackson owned if the Jackson family decided to sell, the
spokesman said.
"We are always interested in good investment opportunities. The
Beatles catalogue is of course one of the most beautiful in pop
history," said the ABP spokesman.
