Investor Relations Survey 2012

 When less is more

 Something investor relations officers (IROs) have known for years is finally dawning on regulators and policy makers – ‘less is more’. Companies have struggled with the unintended consequences of decisions made by regulators, albeit with the best intentions. Their time and energy have been expended on producing data, driven by the short-term consideration of a quarterly reporting financial calendar, leaving less time to provide information that will support their longer-term investment case.

 Policy makers, including the European Commission and International Accounting Standards Board, are only proposing changes to disclosure now and it will be a little while before they result in practical recommendations. But with competition for capital expected to intensify, companies need to be able to present an investment case, supported by insightful information that shows how they can position themselves for the kind of growth that will deliver superior returns in a low growth environment. Ideally there will be less time spent on box ticking and boilerplating and more time for insightful information that raises the level of conversation with investors and leaves more time for analysts to focus on fundamentals.

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Investor Relations Survey 2011

Extraordinary Times

These are extraordinary times. Interest rates have never been lower, but as soon as the fear of deflation receded, inflationary pressures started to mount. In an uncertain world, dividend yields on European equities were higher than the yields available on government bonds, something that has not happened for the best part of 60 years. Corporate profits have been strengthening, but there are concerns about consumer demand and while companies strengthened their balance sheets, governments found themselves immersed in sovereign debt. Hopes are pinned on the private sector to drive economic growth as the state retreats.

In some respects, and paradoxically  as a degree of normality returns, the job for investor relations officers (IROs) will become more difficult. They will move away from communication strategies that convey clear and quantifiable messages on costs savings and debt reduction to more uncertain messages on top line growth and investment. Extraordinary Times, our 2011 Investor Relations Survey, reviews changes to the landscape over the past year and asseses the issues facing IROs over the coming year.

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Investor Relations Survey April 2010

Setting a new course

Having navigated the recession, IROs are setting a new course. A degree of uncertainty and caution remains, but the findings of our 2010 Investor Relations Survey suggest confidence is returning and more respondents are planning to meet investors on roadshows with a more upbeat message. The strength of the stock market recovery over the past year was in stark contrast to the strength of the economy and a key challenge will be keeping expectations aligned to company fundamentals by managing disclosure and guidance.

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Investor Relations Survey May 2009

Investor Relations in times of uncertainty

Who would be an IRO in the current uncertain times? Despite some signs of optimism in April, markets continue to be volatile, many investors still lack confidence in equities and visibility on future prospects continues to be limited. These are just some of the factors making the job of communicating with shareholders, analysts and creditors a far from simple task.

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