Thoughts on targeting from Europe’s top IROs
More than a quarter (26 percent) of the nominees for the recent IR Magazine Awards – Europe 2018 say that if they had more cash, they would spend it on investor targeting. Almost a third (32 percent) say this is where they would dedicate the extra resources if they had a larger team.
This isn’t top of the bigger budget or more bodies wish list though. Top of the IR wish list if more cash was available would be to increase the number of meetings, roadshows and conferences, followed by doing more benchmarking or investor perception studies. When it comes to a larger team IR Magazine Award – Europe 2018 nominees say they would first use the extra resources to do more extensive peer analysis followed by increasing their engagement with the investment community.
As part of IR Magazine’s research into the practices of award-winning IR teams, we asked our awards nominees how they plan to achieve their IR objectives. Below is a snapshot of how three companies plan to tackle targeting:
‘We have a structured approach in targeting tier one, two and three investors: both existing and potential shareholders. Classification is on likelihood and size of (potential) holding. Tier one we want to see/speak to 100 percent; tier two, 50 percent; tier three, 25 percent. This is being monitored throughout the year.’
‘We will work more systematically with an IR management tool both for managing current relations and targeting new investors. Part of our equity story is M&A, and we must make sure the investment community is aware of and hopefully supports it if we wish to raise capital in connection with a new acquisition.’
‘Clear communication about how we have reset the business to survive and grow despite a challenging macro-environment. Worked with brokers and non-brokers on targeting. Proactive relationship building between IR/executives and top shareholders.’
Other recent research – published in the IR Objectives & Challenges report – finds that targeting new investors is by far the top priority for IROs around the world over the coming 12 months, with 75 percent of the more than 600 IROs surveyed placing this among their top three goals for the year. Sixty five percent put enhancing engagement with existing shareholders into their top three, while in third place is increasing international share ownership – though a far lower 36 percent put this as a top-three priority for the year.
The IR Magazine Global Forum & Awards takes place this October in Amsterdam, Netherlands. We have a great agenda lined up, focusing on the hottest global IR topics, including:
- Expanding your investor base with innovative approaches to targeting
- Trade, Tax and Trump: The global economic outlook
- A Practical Guide to Mifid II: Seize the access opportunity
- Passive investing: How technology is changing the dynamics for investors and IR
View the full agenda, read speaker profiles and book your tickets here.