Toronto toasted IR's finest
The year that preceded the IR Magazine Awards – Canada 2015 proved a rocky one for local companies, jolted as they were by sharp commodity price falls and tumbling bank shares. The winners pulled through, however, by rising above the short-term market shifts and maintaining a determined focus on their long-term aspirations.
TD Bank Group, which picked up a highly impressive six trophies at the awards ceremony in Toronto, saw its share price drop around the turn of the year, although it has used this correction to its advantage. ‘The valuations for banks have come in quite a bit and therefore we are on par with some of the global competitors, so it is a good time to be out in the international markets and we’ll continue to do that,’ said Rudy Sankovic, senior vice president of IR at TD Bank, at the awards event.
Another theme on the night was succession. A number of winning companies spent 2014 showcasing new management faces: TD Bank had the daunting task of replacing chief executive and investor favorite Ed Clark; ARC saw three key members of the C-suite change; and TELUS showed its class by taking the prize for best in sector just 11 months after new arrivals in the chief executive and head of IR positions.
But the CEOs and CFOs who won awards on the night refused to take the credit for the votes they received from investors and analysts, choosing instead to highlight the work of their respective IR departments. ‘We’re blessed to have a strong team,’ said Sean Boyd, CEO and president of Agnico Eagle Mines, when he took to the podium.
This year, more than 270 fund managers, buy-side analysts and sell-side analysts who cover the Canadian market took part in the awards research. They handed the grand prix for best overall IR to TD Bank (large-cap category), ARC (mid-cap) and Capstone Mining (small cap). Points from across the categories and cap sizes were added up to create the Canada Top 50 ranking, which TD Bank topped for a remarkable fourth year in a row.
A report on the research behind the awards can be found in the IR Magazine Investor Perception Study – Canada 2015, which is available to download by professional subscribers to IR Magazine. The report includes general feedback from the investment community across a range of IR issues, such as reporting, technology and corporate governance. It also features profiles of highly rated IR departments and comments from investors and analysts about why they voted for winning and nominated companies. You can order the report by contacting Andrea Pion at andrea.pion@thecrossbordergroup.com.
Grand prix for best overall investor relations
Large cap
TD Bank
What the investment community says
‘IR is of such core importance to TD, it’s as if the company approaches it like a business’ – sell side
Mid-cap
ARC Resources
What the investment community says
‘I put ARC at the top of the list for IR, because it is diligent in its approach, accessible, thorough and consistent’ – sell side
Small cap
Capstone Mining
What the investment community says
‘I always enjoy meeting with the management members, as they are never cautious and guarded’ – buy side
Best investor relations officer
Large cap
Rudy Sankovic, TD Bank
What the investment community says
‘Rudy Sankovic has a proactive approach to IR and reaches out on different issues’ – sell side
Mid-cap
David Carey, ARC Resources
What the investment community says
‘He is consistent, available and responsive, and his depth of knowledge is exceptional’ – sell side
Small cap
Lisa Ottmann, Trinidad Drilling
What the investment community says
‘Lisa Ottmann, the investor relations director of Trinidad Drilling, is extremely knowledgeable. I called her out of the blue and she gave up an hour to talk to me’ – buy side
Best IR by a CEO
Large cap
Charles Brindamour, Intact Financial
What the investment community says
‘Charles Brindamour is open and clear and takes every opportunity to go out on roadshows and make himself as accessible as possible’ – buy side
Mid-cap
Sean Boyd, Agnico Eagle
What the investment community says
‘Sean Boyd is so available. If you called and asked him for a meeting at the South Pole, he’d be there yesterday!’
– sell side
Small cap
Fred Stanford, Torex Gold
What the investment community says
‘When Torex issues a release, it includes a phone number so we can contact Fred Stanford the same day’ – buy side
Best IR by a CFO
Large cap
Colleen Johnston, TD Bank
What the investment community says
‘Colleen Johnston is able to answer the most incredibly detailed company-specific questions and provide good insight on the regulatory side and into the US operating environment’ – buy side
Mid-cap
Paul Bradley, Northland Power
What the investment community says
‘He used to be an investment banker so he can market the company, adding color and incremental information’ – sell side
Small cap
James Slattery, Capstone Mining
What the investment community says
‘The CFO at Capstone, James Slattery, has a really good grasp of the business and is well respected in the industry’ – sell side
Best financial reporting
TD Bank
What the investment community says
‘In its reporting, TD does a good job of singling out items of note and offering transparency on other issues’ – buy side
Best use of technology
TD Bank
What the investment community says
‘The videoconferences and one-on-one meetings provided by TD make the firm more effective and differentiate it from the rest of the sector’ – buy side
Best investor meetings
CN
What the investment community says
‘The detail in presentations from CN is always very good’ – buy side
Most progress in IR
Loblaw
What the investment community says
‘Loblaw has improved in multiple ways: the disclosure, both written and verbal, is much better, there is now much more access, and management is more readily available at meetings’ – sell side
Best corporate governance
CN
What the investment community says
‘As CN is such a huge company, it attracts a good board and is extremely fastidious in corporate governance matters’ – sell side
Best sustainability practice
Cenovus
What the investment community says
‘Cenovus engages in other companies’ reclamations that surround its land. It tells us how it uses the space more effectively and goes above and beyond to explain how it is giving back’ – sell side
Best IR during a corporate transaction
Baytex (acquisition of Aurora Oil & Gas, June 2014)
What the investment community says
‘The rationale for the Aurora acquisition was brilliantly explained. It was well structured and well received’ – sell side
Best IR for an IPO
PrairieSky (May 2014)
What the investment community says
‘The prospectus for PrairieSky’s IPO was well laid out and the marketing was good, with plenty of road trips’ – sell side
Best IR by a TSX Venture Exchange-listed company
Input Capital
What the investment community says
‘Since its IPO in 2013, Input Capital has done a good job and the IR team has proved itself well’ – buy side
Best IR by a Canadian company in the US market
Progressive Waste
What the investment community says
‘Progressive Waste does lots of work on financial disclosure and communication with the Street on its numbers. And it gives good forecasts’ – sell side
Best in sector
-Communications: TELUS
-Consumer discretionary: Stantec
-Consumer staples: Loblaw Companies
-Energy: ARC Resources
-Financials: TD Bank Group
-Industrials: CN
-Materials: Agnico Eagle Mines
-Technology: Thomson Reuters
-Utilities: Algonquin Power & Utilities
Lifetime achievement award: Carol Hansell
The award for lifetime achievement is bestowed by IR Magazine after consulting with a group of uniquely qualified judges: the former winners, representing Canada’s IR community. This year’s winner, Carol Hansell, has contributed a huge amount to Canadian IR during more than 25 years’ legal practice. She has been called the ‘spark’ that led to CIRI’s Model Disclosure Policy, which predates Regulation Fair Disclosure, and the 2010 paper she led – ‘The quality of the shareholder vote in Canada’ – is considered the foundation stone of crucial reform.
‘Carol has always been very giving of her time and expertise, educating our members at countless CIRI events and teaching in the CIRI/Ivey Investor Relations Certification Program. Her work on the proxy voting infrastructure, highlighting the flaws in our system, has brought about action that will have a significant impact on not only the IR community but also all users of the system, ultimately improving shareholder democracy’ – Yvette Lokker, president & CEO, CIRI
This article appeared in the summer 2015 print issue of IR Magazine