According to a new survey of the Bank of New York Mellon Investor Relations activities on a global level, concerns about credit stimulate changes communication and increase in the contents of the communication company with analysts .
companies, worldwide, are turning their different strategies in the Investor Relations to face up the credit crunch and the high volatility in the last 18 months the stock market, which led to increase communication with analysts and fund managers.
And 'This is clear from the last annual report Global Trends in Investor Relations Bank of New York (BNY) Mellon, the global leader in asset management and securities services.
benchmanking Developed as a tool for customers of depositary receipts, the report is the result of a survey conducted by BNY Mellon, in collaboration with the U.S. National Investor Relations Institute (Niri). The results have made use of the contribution of 270 companies in 42 countries and show that the listed companies manage the assets of Investor Relations (IR) in the current economic climate, including how to access the investor, reporting and completeness, the relationships with the brokers, the approach to the "sell side" and the issues of costs.
The sample of companies that responded to the survey is as follows:
a) market capitalization (in USD): • 7%
Mega Cap (over 25 billion)
· 25% large cap (5 to 25 billion)
· 31% Mid Cap (1 to 5 billion)
· 26% Small Cap (from 150 million to one billion)
· 11% Micro Cap (up to 150 million)
b) geographic distribution:
· 31% North America
· 24% Western Europe
· 19% Asia-Pacific
· 16% EEMEA (Emerging Europe, Middle East and Africa)
• 10% Latin America
From the report it shows the following:
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90% of respondents has increased or maintained the same level of communication with analysts and investors due to increased market volatility over the past 18 months. More than half of respondents said they had implemented the communication
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financial companies were the ones that have most increased communication (67%) than companies in other sectors. The same financial companies have indicated, in 65% of cases, have also changed the time horizon perspective on business; -
the focus of analysts in 2008 focused on credit worries (66%) followed by temporal perspective on business (50%) and cost containment (50%); -
North America was the region in which concerns about credit have most prevailed (73% of cases), followed by Western Europe ( 70%) and the Asia-Pacific (54%); -
89% of companies surveyed participate meetings with hedge-fund using intermediation of brokers. 52% of these companies said that the type of hedge funds met is adequate, both in terms of company size and investment style, while 21% of the company claims that their meetings with brokers procure funds are too small or too aggressive or turnover is too high. 27% of respondents said they did not know or do not have sufficient information to judge the quality of the hedge-fund managers; -
only half of the financial sector, which was attended by the survey, have a habit for political Internal draw up a written document on the management of the crisis, compared to two-thirds of the energy companies that produce it. In geographical terms, 60% of the companies in the Asia-Pacific, Latin America, Eastern Europe and the Middle-East do not prepare written communications programs on the management of the crisis, while 52% of companies in Western Europe and 46% North American companies produce it; -
47% of respondents said they had a budget for the IR between 250,000 and one million dollars, while 21% of the budget over a million USD ; -
level the United States is the world's most popular destination for the roadshows, covering 52% of the total time devoted to them. Not considering the responses of companies in North America, the United States is still the main destination, occupying 36% of the time spent on roadshow from the remaining companies (up from 32% in 2007); -
the U.S. companies are reluctant to organize road shows outside of their market: 93% dedicated its activities to the domestic and the remaining companies are market driven mainly UK; -
in two thirds of the cases meetings with analysts and investors attended by the senior management of companies, while in 51% of the meetings and see the presence of senior management that the IR. The behavior change in large-cap and mega , in which the team participates in the IR of all the meetings and leads them alone in 65% of cases ( mega) and 47% (large ) -
about 70% of respondents aware of conflict of interest relating to brokers because of their primary attention to the commission. Nevertheless, on average, 73% of respondents make use of brokers and, in general, sell-side facilities for organizing meetings; -
for 2009 respondents of the mega caps will seek to increase access to investors using more of their internal team to IR (40% ) or structures of their custodian (35%); -
45% of respondents said that the quality of sell-side research on their company stood at the same level as the previous two years, while 24 % showed a decline in quality.
The survey also shows:
three main objectives pursued structures of Investor Relations for the period 2008-2009:
1) effectiveness of the disclosure in the statement (51%);
1) greater participation in decision making and strategy of their company (34%);
3) diversification of the base of 'share (33%);
and three variables to monitor the efficiency of a structure of Investor Relations:
1) informal feedback from the financial community (55%)
2) more efficient use of time of senior management (43 %)
3) number of one-on-one meetings with the financial community (36%)
The full report is available online at
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Source: The Bank of New York Mellon Corporation (excerpt) February 2, 2009
Translation and summary by Nicola Fiore, Associate Partner Polytems Hir
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