BNY Mellon Issues 2015 Set of Global Trends in Investor Relations
On Feb 9, 2016, BNY Mellon released its 2015 Global Trends in Investor Relations: Market Research Analysis of IR Practices Worldwide. The report summarizes survey responses of 550 companies from 54 different countries to recognize current trends within the global investor relations (IR) space. The report signifies that IR departments globally are intensifying their efforts with research analysts and building the visibility of the management teams with investors. A few of the popular features of the report are listed below:
Non-deal roadshows: Nearly all companies still rely on brokers to arrange non-deal road shows (NDRs). However, the amount of companies that don’t use brokers for NDRs has elevated from 5% this year to 10% in 2015. The main factor reported when deciding on an agent for NDRs is the caliber of investor targeting supplied by the broker. 84% of companies name sell-side/broker-run road shows because the top supply of introductions to investment professionals, but this can be a decrease from 87% this year. A primary reason with this decline is the rise in one-on-one investor conferences. The typical quantity of road show days has decreased from 25.1 days in 2013 to 18.6 days in 2015, as the final amount of 1-on-one conferences outdoors the issuer’s real estate market elevated 12.6% from 250.6 conferences to 282.3 conferences.
Director participation in investor conferences: Investor conferences with participation by board people greater than bending between 2013 and 2015, from 24% to 49%, correspondingly. This trend was brought by companies in Developed Asia, with 81% of companies reporting such conferences, adopted by Eastern Europe with 59% and The European Union with 55%. United States companies had the cheapest rate of board/investor interaction at 26%. From the firms that reported conferences between company directors and investors, 54% mentioned that such conferences were standard practice for the organization and were generally caused by investor request. However, only 24% of companies reported getting an itemized policy regarding interaction between company directors and investors. 21% of companies mentioned they believed company directors shouldn’t have any direct connection with investors.
Social networking usage: Using social networking for IR purposes is constantly on the increase, although in a slower pace recently. This Year, only 9% of companies reported using social networking for IR purposes, which elevated to twenty-eightPercent in 2013 and 30% in 2015. From the 70% of firms that reported not using social networking for IR purposes, roughly half indicated that they’re going to use social networking later on. The most typical social networking platforms used are Twitter/StockTwits (16%), Facebook (11%) and cell phone/tablet IR apps (11%).
When analyzing the businesses utilizing social networking, laptop computer discovered that two times as numerous mega cap companies (54%) use social networking in IR when compared with microcap companies (26%). The 4 domains reporting the greatest use of social networking are Technology (39%), Financial (39%), Telecommunications (38%) and Healthcare (38%). From the firms that reported not using social networking for IR purposes, most reported too little investor demand (61%), in addition to limited sources (35%), lack of ability to manage the content (29%) and insufficient management support (28%).
Written disclosures/social networking policies: The prevalence of written disclosure policies has elevated continuously in the last 5 years. In 2015, greater than 80% of companies reported getting formal written disclosure policies, when compared with 62% this year. The amount of companies with social networking policies also offers elevated from 49% in 2015 when compared with 42% this year. Other kinds of written policies in position which were examined within the survey include crisis communication policies, which decreased from 54% to 52% between 2013 and 2015 data breach communication policies, which decreased from 48% to 44% between 2013 and 2015 analyst and broker interaction policies, which decreased from 39% to 37% between 2013 and 2015 and policies on worker interaction with expert systems, which elevated from 27% to 29% between 2013 and 2015.
The entire report can be obtained at http://world wide web.adrbnymellon.com/files/PB44206.pdf.