June 1st, 2010 by MAGNUS
Time with Investors a priority for ASX-listed Companies: Research
- 52% of repondents to spend more one-on-one time with their investors
- 39% of respondents say site tours will generate more investor interest
- New wave of market uncertainty heightens the need to communicate with investors
More time allocated to one-on-one meetings with investors and the showcasing of company operations through dedicated site tours, are the main investor relations priorities for ASX-listed companies this year, according to a recent survey by the Australasian Investor Relations Association (AIRA).
The Investor Relations Intentions Survey for 2010 found that 52 per cent of respondents said they planned to allocate more time to one-on-one meetings with investors this calendar year, while 39 per cent said site tours would help to generate more investor interest in their company, when compared with 2009.
Around a third of respondents said they planned to increase their commitment this year to other investor relations activities, such as one-on-one analyst meetings, domestic and international road shows, investor days and broker conferences, whilst the remainder of respondents expected to maintain a similar level of commitment in 2010 as they did last year.
Managing Director of MAGNUS Investor Relations + Corporate Communication, John Gardner, says the increased focus on face time with investors in 2010 is not surprising given the tumultuous events of 2009.
“The first six months of 2009 was full of challenges and uncertainty as companies navigated their way through the fall-out of the global financial crisis and began the path to recovery, which we saw in the second half of the year.
“Although, twelve months later, there is a new wave of uncertainty in global markets, there is also a general theme that listed companies should commit more time to meeting with their investors as a means of communicating the company’s future growth strategy,” John said.
“Investor relationships are built and maintained through various activities, but as a minimum they should include regular face-to-face meetings between management and investors, to allow investors to ask management the tough questions… and to see how they respond to them.
“When it comes to communicating a compelling investment proposition, the strength of management – along with company strategy, company strengths and market position – is a critical part of the ‘story’ that is usually best told in person,” John added.
Site tours are also a compelling way to communicate the full company investment story at a time when the competition to attract investment dollars, particularly in the small to mid-cap space, is very fierce.
“MAGNUS has completed a number of client site tours this year with investors, analysts and media, and we expect more activities of this nature as the year unfolds,” John concluded.
The Investor Relations Intentions Survey is conducted annually with ASX 200 companies, across all industry sectors. MAGNUS is a corporate member of AIRA.