Investor Targeting – the royal discipline of Investor Relations! It comes as no surprise that, according to Rivel’s latest study on investor targeting practices, nearly 70% of North American and European companies report proactively reaching out to the investment community to maintain and expand their shareholder base.
Investor Targeting – the royal discipline of Investor Relations! It comes as no surprise that, according to Rivel’s latest study on investor targeting practices, nearly 70% of North American and European companies report proactively reaching out to the investment community to maintain and expand their shareholder base. More than half of these companies (55%) are now investing more time in targeting than they did a few years ago. Management is also supporting these efforts.
According to another Rivel study, 60% of issuers stated that their management plans to engage more with previously non-invested investors in 2024, compared to 48% in 2021 – a significant increase of 12%!
IROs Benefit from Improved Investor Targeting
Attracting new investors not only improves the company’s valuation but also benefits IROs themselves. According to Rivel’s annual IRO compensation study, 39% of North American and 29% of European IROs cited the ability to attract new investors as an important factor in their professional evaluation.
Which Goals Are Particularly Important in Investor Targeting?
The annual study also tracks KPIs used to measure targeting goals. In North America, the increase in the number of new investors is the most important KPI. European IROs place more emphasis on diversifying the shareholder base. Despite challenges, the buy-side is increasingly receptive to direct contact from companies.
Conclusion
Investor targeting, often a challenge for IROs due to its time and resource-intensive nature, is nonetheless worthwhile. It’s beneficial to look beyond one’s own practices and examine the targeting strategies of other companies. As part of an IR strategy, evaluating these practices and potentially developing new IR goals therefrom for the coming years can be a valuable exercise.