Positive NPS Trading Update

20 December 2022

ROUND HILL MUSIC ROYALTY FUND LIMITED

(the "Company")

Registration number: 68002

 Legal Entity Identifier: 213800752UO1CJTV8C39

Positive NPS Trading update

36.1% Year-over-year NPS Increase for 9 Months to 30 September 2022

Round Hill Music Royalty Fund Limited is pleased to report that the Net Publisher's Share1 ("NPS") for the Company's Portfolio in the first nine months of 2022 was US$21.8 million compared to US$16.0 million for the nine months to 30 September 2021, representing a 36.1% year-over-year increase.

The strong growth in year-over-year NPS was driven by robust performance from multiple catalogues along with successful synchronisation placements and licensing fee income.

· The Initial Portfolio Investment2, which accounts for 85.2% of the Company's NPS, produced 15.9% organic growth year-over-year.

· The Company received advance licensing fee payments from some digital services in 2022, which contributed to a 147.7% year-over-year increase in streaming revenue.

· Stripping out these licensing fees, NPS from the Initial Portfolio Investment grew 9.7% year-over-year, driven by several contributing factors including the below:

o  A large amount of income was received from Audiam, a digital collection agency, which also helped contribute to the 147.7% growth in streaming revenue.

o  Synchronisation income increased 46.7% in 2022 due to two large placements licensed directly by the Investment Manager, as Portfolio administrator:

§ Placements for Eric Carmen's "All By Myself" accounted for almost half of the total increase in synchronisation income. These placements included advertisements for Adobe and TD Bank.

§ The portion of Andreas Carlsson's catalogue administered by the Investment Manager generated US$150,000 of synchronisation income. "I'm Alive" by Celine Dion was placed in the trailer for the French film La vraie vie d'Aline Dieu and "Waking Up In Vegas" by Katy Perry was placed in an advertisement for BEHR Music In Color.

o  The Offspring has seen strong 2022 performance year-over-year, bolstered by the July Round Hill Records release of their Greatest Hits album on vinyl and a busy 2022 touring schedule. Publishing NPS for the iconic American rock band is up 71.3% year-over-year, and Masters Net Label Share3 ("NLS") is up 12.3% for the same period. The Offspring catalogue (publishing and masters) represents the Company's largest portfolio position by value.

o  The Carlin catalogue produced a strong third quarter and publishing NPS is up 18.4% year-over-year vs. a relatively flat year-over-year for the six months to 30 June 2022.

o  Publishing NPS for the Eric Carmen catalogue is up 53.6% year-over-year. The catalogue includes hits like "Hungry Eyes" and "All By Myself."

· Catalogues acquired in 2021 and early 2022 with the C Share proceeds generated significant acquisition NPS growth including Trevor Rabin, Rebelution, Alice in Chains and David Coverdale.

1Net Publisher’s Share is the amount received by the music publisher after deduction of all fees, commissions and all royalties and other shares of income payable to third parties. For the avoidance of doubt, it does not include accrued income.

2Representing the seed portfolio acquired from Round Hill Music Royalty Fund LP including its minority interest in RH Carlin Holdings LLC.

Josh Gruss, Founder and CEO of Round Hill Music LP, the Company's Investment Manager, commented:

"I'm delighted with the significant increase in NPS seen from the Company's portfolio's underlying catalogues. We continue to strongly believe in the positive fundamentals of the music industry despite the challenging macro environment and this update again points to the lack of correlation with the earnings of the asset class to equity market movements. There is much to be excited about as we head into the end of 2022 and we look forward to continuing to optimise these valuable assets through our active catalogue management to deliver a strong portfolio performance."

FOR FURTHER INFORMATION

Notes: 

Unless the context otherwise requires, capitalised terms used in this announcement have the meanings in the Company's prospectus published on 19 October 2020, as supplemented by a supplementary prospectus published on 3 November 2020.

About Round Hill Music Royalty Fund Limited

The Company is a non-cellular Guernsey company. The Company's investment objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. In order to achieve this, the Company invests in a songwriter's copyright interest in a musical composition or song (being their writer's share, their publisher's share and their performance rights) together with the rights in the recording of the musical composition or song (known as the master recording rights) together with all such rights and assets considered by its investment manager, Round Hill Music LP, to be ancillary thereto.

About Round Hill Music LP

Founded in 2010, Round Hill Music LP is a fully integrated owner and operator of music copyright properties. With offices in Nashville, Los Angeles and London, Round Hill Music LP has an experienced management and investment team with an established reputation and extensive experience in the music and finance industries.