The world of investor relations will continue to be a challenging playing field in 2025. Between geopolitical tensions, technological upheavals, and new expectations from investors, IROs are in high demand. The economic environment is bringing fresh dynamics to the financial landscape. No wonder the to-do list is long and resources are scarce.
The good news: Many trends offer opportunities to emerge stronger from the current challenges – with the right balance of strategy, technology, and empathy.
Digital Formats: The New Standard
In-person roadshows and on-site meetings remain important, but their number is decreasing. Digital formats such as webinars, podcasts, and virtual conferences are gaining significance. They save costs, offer flexibility, and reach target groups that might otherwise not have been on the radar. For many IROs, this means less travel stress and more efficiency. Of course, not everything can be replaced by a screen, but new tools offer great potential, especially when time is short. Another trend: hybrid roadshows. Many companies are opting for a hybrid approach that combines both virtual and physical elements. This strategy allows them to leverage the advantages of both formats and reach a broader spectrum of investors.
Passive Investment: Understanding the Silent Power
Passive investments are no longer a niche but a dominant factor. Between 2020 and 2024, the trend toward passive investments, particularly in the form of index funds and ETFs, has continued to strengthen. In 2024, passive investment strategies accounted for over 50% of the global equity fund market. Many IROs are responding to this development by increasing corporate governance roadshows. Passive investors are becoming a growing force in annual general meetings. A governance roadshow helps to address potential voting conflicts at an early stage.
Data and AI: The New Currency of IR Work
Data is worth its weight in gold. However, in day-to-day operations, there is often little time to fully leverage all available tools and technologies. Yet these tools could help to identify risks early, better understand investors, and communicate more effectively. For example, artificial intelligence can provide sentiment analysis and reveal trends before they are reflected in stock prices. Implementing such systems requires time and effort, but the long-term value is enormous.
Retail Investors: The Underestimated Force
Retail investors – especially younger ones – are on the rise, last but not least thanks to platforms like Reddit and Twitter. The needs and information behavior of the younger generation often differ significantly from those of older generations. For IROs, managing this group is not an easy task, especially since traditional communication channels often do not work. Social listening, Finfluencer relations, and targeted use of social media can make a big difference here.
Conclusion: Adapting with Foresight
The work of IROs has never been easy. It is all the more important to set priorities and focus on solutions that truly work – both for the company and for the IROs themselves. The right mix of technology, flexibility, and a good dose of pragmatism can be highly beneficial.
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