Meeting Notes

Investor Relations Basics: Marketing and Outreach

Investor Relations Basics: Marketing and Outreach

The Cincinnati Tri-State Chapter of NIRI held its first meeting of the season on November 17, 2016. Rupert Della-Porta and Lisa Traeger of Atlantic Equities LLP engaged attendees in a discussion of marketing and outreach (domain 5). The discussion content tracked well with that topic from Investor Relations Charter (IRC) exam and the IRC topic of practicing IR globally (domain 11). Below are several key points from that discussion.

  • Why US publicly-owned companies should spend time in Europe
    • European investors own approximately 8% of US stocks
    • European institutional investors tend to be longer-term holders of stocks
    • Diversification of the shareholder base benefits publicly-owned companies
  • How European markets are changing
    • Stock holdings are becoming more concentrated as fundamental research is aided by metrics, analytics and technology for screening stocks, etc.
    • More institutions are moving towards owning a smaller number of stocks but with larger positions for an average holding
    • Marketing to institutions enhances the opportunity for companies to become a focus
  • Importance of C-suite executives to be part of marketing to European investors
    • Consistency of meeting annually with a company is more important than the seniority of company representatives
    • Many European institutions have a policy of not investing until they have met with the company
    • Investor Relations Officers (IRO’s) can explain strategy and the financial story, and are the only management representative about 30% of the time for US companies in Europe
    • Direct feedback from investors is an advantage of face-to-face meetings, and companies should also request that firms organizing meetings provide feedback
  • Times to avoid European investor meetings
    • There are seasons where investor conferences dominate, and having an advisor with insight to timing is valuable
    • Some holidays differ among countries, and late December-early January is not a good time for investor meetings

 

(Click here to view a slide presentation from this meeting.)