Exclusive Insights from Global IR Conferences

Engaging With The Right Investors: Insights from Global IR Conferences

Over the last month, Rose & Company attended global IR conferences in Australia (AIRA), Canada (CIRI), the US (NIRI), and the UK (IR Society). A universal issue has emerged: companies across all market caps are spending a disproportionate amount of time engaging with short-term investors. In this article, we delve into the challenges IR professionals face and explore strategies for engaging with the right investors.

Preview of Insights‍

• A universal challenge has emerged: companies across all market caps are spending a disproportionate amount of time engaging with short-term investors.

• This coincides with Nasdaq's 2024 Annual IR Pulse Survey which found that ‘attracting capital from international markets’ and ‘engaging generalist investors’ are the greatest challenges for IR professionals. Attracting new long-only investors continues to top the list of IR priorities with the majority of survey respondents citing this goal as their primary engagement focus.

• Conferences and non-deal roadshows organized through sell-side corporate access channels lack the representation of the generalist long-only community, and banks are increasingly prioritizing high-turnover hedge funds, who generate approximately 80% of their market revenues.

• 70% of investor meetings organized through traditional corporate access channels are held with high-turnover funds, which average an annual portfolio turnover of 91%. In a recent Benchmarking Analysis Report conducted by S&P, 76% of respondents had a fast-money investor as their most frequently engaged firm.

• Corporate marketing behavior has been permanently altered in the years following the pandemic. US companies have shifted away from non-deal roadshows, doubling down on conferences instead. Despite increasing conference attendance, the lack of long-only investors renders these events ineffective.

• Effective investor engagement requires targeting and building relationships with investors who have a longer holding period, as they provide stability and align better with long-term corporate goals. Meetings organized by Rose & Co average an annual portfolio turnover of just 35%, significantly lower than the 91% seen with traditional corporate access channels.

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