ALC - Q4

Investors are taking a growing interest in the environmental, social, and governance ESG policy of the companies they invest in, and rightly so. A recent Barron’s article indicated that one-third of U.S. assets are now managed according to sustainable principles. Investors expect that number to grow further under the Biden administration. Whilst over in Europe, more than half the money that flowed into European funds last year went into sustainable products, according to the Association of the Luxembourg Fund Industry. As a result, a record €1.12trn ($1.4trn) in investor cash has now been steered toward strategies that address environmental, social, and governance considerations, according to the study.

Recent events have highlighted the fact that millions of retail investors are gathering online in chat forums like Reddit to discuss public companies every day and millions more are investing in the public markets for the first time. While the phenomenon of retail investors relations is nothing new, the dynamics may have changed. With this in mind, now is a good time for IR teams to refresh their digital investor relations strategy.

2020 was truly an extraordinary year. From navigating a pandemic to an increasingly “aware” investor base to security concerns and limited budgets, there was no shortage of challenges for IROs to manage when presented with a business crisis. There were also countless lessons to be learned, many of which were discussed in a recent webinar, “Expect the Unexpected: How to Plan for a Crisis.”

Traditionally, IR professionals are accustomed to traveling frequently to meet with investors and analysts, collecting valuable feedback to deliver to the C-suite to help shape messaging for forthcoming disclosures and corporate events. But 2020 was no ordinary year, and the same could be said for 2021 so far. However, there are some lessons learned in 2020 that can help IROs successfully navigate 2021, such as addressing market volatility, maintaining communications with the investment community, and focusing on ESG efforts. 

As 2020 comes to an end, IR teams are looking to 2021 with the experiences gained from an uncommon and challenging year. Bringing a unique perspective garnered from visibility across thousands of IR programs, the Q4 team hosted a webinar to help guide IROs through the 2021 strategic planning process. 

This year has been one of tremendous change for the global capital markets, including changes in regulations and structural shifts that have influenced investor sentiment, decision-making, and how companies engage with the investment community. These changes, combined with the new virtual environment, have had a huge impact on IR programs and how IROs engage the sell-side.

With several months of living and working in a global pandemic under our belts, we wanted to look specifically at the role stock surveillance has played in helping clients navigate these uncertain waters and preparing for the future. To get to these observations, we connected with Q4’s team of surveillance analysts.

Today, IROs have access to more information than ever before. So, when looking to create an IR program that is driven by data, it can be a challenge to consolidate, analyze, and utilize the vast amount of information that is available. However, with the right strategic approach, it is possible to efficiently aggregate data and insights into investor behavior to tell a complete story.

Small-caps are often under-covered by analysts and/or overlooked by the street, making it difficult to stand out and garner institutional attention. Small teams, tight budgets, MiFID II, and a global pandemic have all contributed to an increasingly challenging situation for small-cap companies.

Recently, Q4’s Investor Relations Partner Matt Tractenberg joined a panel of IR industry professionals, including Charlie Parry, head of IR at Good Energy Group, Dr. Peer Niles Schroader, head of corporate communications & IR at Basilea Pharmaceutica International, Ltd., Sofia Antunes, IRO at Lundin Energy, and moderator, Michel Gerber, head of IR and corporate communications at VAT Group for a Swiss IR Association webinar to discuss how small-cap stocks can increase visibility and better position themselves as attractive investment targets.

All of the COVID-induced changes have had lingering impacts on investor relations, and by extension, how IROs can effectively target. For many in the industry, the switch up and ‘new normal’ has come with a unique set of challenges, whether it’s working from home or taking the majority (if not all) of their meetings virtually. To help shed some light on how IROs are navigating the new reality of targeting, we’ll share some helpful investor targeting tactics that other notable IR professionals are implementing to make the most of the market as it stands today.