How to Incorporate a Best-in-Class Investment Proposition on Your IR Website
Research shows that the overwhelming majority of investors use the IR section of a company’s website and most have made an investment decision based on information they found on the IR website. This means having the right information on your IR website is critical.
For the most part, companies get the basics right – financial reports, event calendar, corporate governance details, contact information, and so on. But most IR websites miss out on a huge opportunity: the investment proposition. In fact, based on analyses of IR websites, we estimate that fewer than 25% of companies have a section or page dedicated to conveying the company’s investment proposition. And, within that subset, around 1 in 10 investment propositions are effective.
The reason that having an investment proposition on the website is so important is twofold:
- Enhancing the Investor Onboarding Process: Often, when IROs sit down with PMs for the first time, it represents the first deep exploration of the company from an investment perspective for the PM. This necessitates a very basic conversation so that the PM can understand the fundamental elements of the business. IR teams that have effective investment proposition sections on their websites are often able to circumvent these elementary conversations, as PMs already understand the basics. This can save significant time and energy for IR teams.
- Providing a Go-To Place for Updates: As a company’s strategies, initiatives, products, and operations evolve, so does its investment proposition. And while IR teams can educate some investors on these changes through one-on-one conversations, it is impossible to speak with all shareholders. The best IR teams use their IR websites to disseminate key messages to stakeholders with whom they do not have an opportunity to connect directly.
Companies’ investment proposition pages on their websites will vary depending on factors such as industry, complexity, and strategy. Nonetheless, all companies should aim to incorporate the following factors into their investment proposition page:
- Key Messages: Succinctly communicate the most critical three to five messages that your company wants investors to know.
- Performance Charts: Use graphics and charts to demonstrate a track record of financial performance.
- Capital Allocation: Summarize the business’ approach to capital deployment and how this approach maximizes shareholder value.
- Competitive Differentiation: Use explicit language to clarify for investors what makes your organization different relative to peers.
- Growth Outlook: Detail your company’s path forward and leadership’s expectations for future growth.
To learn from other organizations that have effectively built investment proposition sections on their website, explore the following examples:
Thinking about creating an investment proposition page on your IR website? We are happy to help. Contact us to learn how Clermont Partners can improve all elements of your IR website.Back To Blog