Earning Guidance? Pro & Contra

The figures speak for themselves: According to a Q4 report, more and more listed companies are publishing an annual earning guidance. According to this report, the number of companies issuing such earnings forecasts increased sixfold between 1995 and 2007. The number of companies that issue quarterly earning guidance has even increased sevenfold. What are the advantages and disadvantages for a company to make such earnings forecasts?

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Robeco: Satellite Data to Detect Deforestation in Palm Oil Plantations

Robeco uses satellite data to check whether forests in Malaysia and Indonesia are being deforested with the aim of making room for new palm oil trees. For this purpose, high-resolution images from orbit will be used in order to carry out a continuous before and after comparison of the forests in these regions. For Robeco, addressing sustainability issues in the palm oil industry is an important aspect of its commitment to sustainability in the context of the SRI investments in 2019.

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Highlights of the ESG Integration Forum – Europe

IR Magazine and its sister online publication Corporate Secretary have recently brought together various participants from the investment world at the ESG Integration Forum – Europe. The forum provided both IR and governance professionals with an insight into how Buy Side, Sell Sid and rating agencies integrate ESG into their work.

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ESG: How Companies Adapt to the Changing Investment Landscape

In October, Nasdaq Corporate Solutions hosted a panel discussion in London on the increasing importance of non-financial environmental, social and governance data and ESG ratings in buyer investment decisions. Speakers from T. Rowe Price, DWS Investment, Sustainalytics and Standard Chartered spoke in the panel discussion entitled “ESG and the changing investment landscape – how companies need to adapt”.

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EU Action Plan: Regulatory sustainability requirements for asset managers and investment advisors

The EU Commission published an action plan for a sustainable financial system in March 2018. The aim is to direct capital flows towards the restructuring of a sustainable economy, to integrate sustainability more closely into risk management and to promote the transparency of sustainable financial products.  The EU Action Plan provides for the implementation of a total of ten measures to this end.

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Passive Investing: How to deal with the growing trend of passive shareholders?

Passive investments continue to rise. In the past 10 years, for example, unbelievably high inflows of funds into passive investment vehicles have been observed. How does passive investing change the composition of shareholders and influence the daily work of IROs? According to Karen Greene, IR Partner at Q4, one of the key changes is the increase in a large proportion of voting rights holders that cannot be influenced.

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Career Paths in Investor Relations

According to ZRG Partners, the scope of IR activities has changed massively over the past 10 years. While at the beginning the IR’s range of tasks still referred to the mere execution of tasks, the range of responsibilities has clearly shifted towards a range of tasks with management responsibilities.

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New York Pension Funds wants to lower the proportion of shares

The New York Pension Fund plans – according to a report by Reuters – to shift funds from shares to bonds. The goal is to reduce market risk and secure liquidity in the $216 billion fund. At the Reuters Global Investment Outlook 2020 Summit in New York, Anastasia Titarchuk, CIO of the New York State Common Retirement Fund, mentioned that a current asset allocation study will probably come to the conclusion to reduce the proportion of shares.

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Investor Relations is becoming increasingly complex and demanding

LINK Asset Services is of the opinion that investor relations is currently being significantly expanded towards stronger stakeholder relations. This is due on the one hand to global developments in the area of corporate governance. According to the authors, the Corporate Governance Code has undergone major reforms in Germany and Belgium. Another aspect that is causing IR work to swell more and more is the growing interest of investors in ESG.

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The Flight of the Investors: International Equity Funds

Morningstar recently reported that investors are withdrawing their money from international equity funds. In the third quarter in particular, which has just ended, Morningstar saw the largest outflow of funds since 2008. In September alone, a total of $4.7 billion flowed out of this fund category. This is the 4th month in a row and adds up to $16.6 billion in funds withdrawn from international funds this year. Overall, according to Morningstar’s report, the past quarter was the second worst in 10 years.

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