Each year, those of us in the trenches of shareholder communications look forward to BNY Mellon’s Global Trends in Investor Relations: A Survey Analysis of IR Practices Worldwide. This year, the study slices-and-dices responses from 550 public companies working out of 54 countries… pinpointing up-to-date trends in investor relations. The full 2015 report is available here.
One area they annually benchmark is IR’s appetite for communicating with individual investors. Note: I tend to use the PC term “individual” rather than “retail.” Either term encompasses any stakeholder, long-term or day-trader, that buys and sells equities themselves. (It does not include pump-and-dumpers. There is no PC word for them guys.)
FROM BNY MELLON
20% (net 16%) is a meaningful amount of increased desire to identify and court individual investors. This could be a factor why Virtual Investor Conferences (CLICK HERE) has had such a stellar February. We have had 1,044 online non-deal roadshows viewed in our platform so far this month.
Another prominent indicator of the growing importance of individual investors is that both the OTC Markets and Deutsche Bank DR Group regularly use our environment to connect their issuers directly with active investors. Proudly, we’re in our 7th year with these conferences.
One last adjacent factor for virtual events may be the actual decline in the number of physical non-deal roadshows companies are holding. The average number of broker-driven roadshow days has declined from 2013’s 25.1 days down to just 18.6 days in 2015. Although that is one less week of roadshow travel-days for a CEO and senior executives, the number of one-on-one meetings have increased by thirty meetings – unknown amount of actual days. Safe to assume several meetings in one day.
Certainly virtual roadshows are very useful for “pre-qualifying” these one-on-ones. No planes or limos needed.