IR Magazine has released a new report examining how IR engages with retail investors. The report investigates the current levels of retail investment, how these have changed in recent times and how satisfied IROs are with these investment levels. The report also looks at how best to communicate with retail investors and how engagement with them differs from dealings with institutional investors.
This report is based on research from the Global IR Survey conducted in Q1 2021. Data in this report is broken down by geographical region and company market capitalization.
- Retail investors in Asia and in small-cap companies globally hold more than half the number of shares held by institutional investors.
- Nearly three in 10 companies have seen an increase in retail investment in the past 12 months. More than a quarter have seen an increase from three years ago.
- While 55 percent of IROs are happy with current levels of retail investment, just over a quarter would like to see a higher proportion of shares held by retail investors.
- Nearly half of IROs in companies with more than 20 percent retail investment would like to see such retail investors hold fewer shares.
- Press releases and IR websites are the most effective ways for IROs to communicate with retail investors.
- The adoption of virtual AGMs has resulted in greater retail investor attendance.
- Retail investor questions tend to focus more on short-term issues such as dividends and share price.
- Enhanced liquidity and stability are seen as the main benefits of a retail investor base.
- The biggest challenge retail investors bring is a perceived lack of knowledge compared with institutional investors. Communications is the biggest challenge for small caps.
This report is available only to IR Advanced and IR Intel subscribers to IR Magazine.
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