Time to Elevate Your IR Program

Written By Victoria Sivrais, Partner & Joni Konstantelos, Managing Director

February 16, 2021

Despite a high-flying stock market, most management teams still believe they are undervalued, and often ask, “how can we align investor perceptions, and in turn investment, to our long-term opportunity?” In a continued virtual world, coupled with a return toward active fundamental investing, or traditional stock-pickers – a group of investors that has been progressively spurned in favor of lower-cost passive investment management – ensuring you are continuing to evolve your investor relations program remains a top priority. The question is – what can you do to amp up your IR program? The answer is simple – focus on the message, optimize your engagement with current and potential investors, and double down on ESG.

The Message

Take a fresh look at your investor materials. It could be that the Growth-oriented narrative you have been telling in the “Investment Appeals” page of your presentation needs to be tweaked. Here are some documents you should be going through to ensure they are up to date and resonate in today’s environment:

  • Investment appeals section of IR site
  • Investor presentation
  • Factsheet
  • IR site messaging and language
  • Targeting “pitch” that you use when reaching out to new investors

Host a Virtual Investor Day. For companies undergoing major transformation, be it strategic or otherwise, Investor Day events are the go-to method for unveiling strategic updates to investors, as well as a wider audience of stakeholders (including key customers, vendors, and employees). Countless in-person meetings and events have been put on hold over the past 10-plus months, leaving investors hungrier than ever to engage with management teams. Virtual Investor Day events provide an excellent opportunity for companies to engage the Street in this global pandemic environment, while also expanding accessibility to larger stakeholder groups which may not have otherwise attended the in-person event.

The Engagement

Enhance your targeting efforts. Now is the time to take advantage of the new “stock picker” mentality that today’s environment is cultivating, so begin identifying and pre-qualifying new names to introduce to the story. It is also worth taking a look at your shareholder base to identify quality, long-only holders who are underweight in your stock and have buying potential that you should pursue.

Strengthen your IR website. Your IR website should be the central hub for investor communications.  Build a set of “Company 101” documents and other ‘ramp’ materials to aid new investors in getting up to speed on your story quickly, i.e. an XYZ 101 investor presentation, a dynamic FAQ document, fact sheet, downloadable financial materials, and put them all in one place. Also, don’t shy away from the camera – think about incorporating video and be creative with how you can give investors “face time” with management. 

Integrate ESG

With nearly every large institutional investor having an ESG-integrated or dedicated fund, a strong ESG narrative can get you positive attention. The largest institutional investor in the world, BlackRock, has clearly taken note and has doubled down on their no-nonsense position on sustainability, laying out the most aggressive stance on climate change taken by any investment management CEO, ever. BlackRock is holding its portfolio companies – which include some 94% of all public companies in the U.S. – to the highest climate standards out there. Time is of the essence. If you haven’t started your ESG journey yet, the time is now.

If you’re interested in learning more about how Clermont Partners can help elevate your IR program, contact us.

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