CHAIR’S LETTER | SERVICE PROVIDERS | PERSONAL VIEW | INDUSTRY NEWS INFORMED THE VOICE OF INVESTOR RELATIONS IN THE UK ISSUE 96 AUTUMN 2017
Navigating a new landscape for IR a special feature
G Virtual AGMs E S
D ebt IR PLUS MiFID II: THE COMPANY VIEW BEST PRACTICE AWARDS UPDATE NEW SOCIETY PR COURSE CORPORATE WEBSITE RESEARCH
Join us for the premier event in the IR calendar Best Practice Awards 2017 RRecognisingecognising andand RewardingRewarding Excellence in Investor Relations
6:30pm, Tuesday 21 November THE PAVILION AT THE TOWER OF LONDON, LONDON, EC3N 4AB
For more information and to book your tickets: WWW.IRSOCIETY.ORG.UK/EVENTS/DINNER +44 (0) 20 7379 1763 [email protected] INFORMED AUTUMN 2017
CONTENTS
4 CHAIR’S LETTER Meeting the challenges ahead 17– 34 Navigating a new David Lloyd-Seed, chair, IR Society landscape for IR
5 NEWS FROM THE SOCIETY G Virtual AGMs E S Revd. Richard Coles to host 2017 awards (p5) New IR Society members (p7) Latest CIR and ICIR passes (p9)
D 6 A PERSONAL VIEW ebt IR London markets at the centre of innovation John Gollifer, general manager, IR Society 17 Implementing IR for all classes of capital 8 INDUSTRY NEWS Susan Davy and Sarah Heald, Pennon Group Seeking consensus in MiFID II 19 A changing investment landscape creates new challenges for IROs MiFID II – what about the companies? (p11) Rachel Carroll, Edison Investment Research David Walker, Hays 21 The rise of alternative funding and the How the corporate website has evolved into an implications for IR important engagement tool (p13) Michael Chojnacki, Closir, and Richard Dixon, Black Sun Julian Macedo,The ECM Team
36 PROFESSIONAL DEVELOPMENT 25 The duties of ownership and the shifting tides of capital allocations Courses (pp37-39) Richard Davies, RD:IR Certificate in Investor Relations (pp40-42) Diploma in Investor Relations (p43) 29 Dealing with the issues of responsible investment Carole Crozat, Exane BNP Paribas 44 EVENTS 31 Using new technology to embrace change The IR Society events programme Tom Tyler, ELITE Connect
45 IR SERVICE PROVIDERS DIRECTORY 32 Bond investors and ESG perceptions Lorraine Rees, IR-connect Find help in this listing of IR service providers 34 Could ‘going virtual’ be an option for your 50 IR SOCIETY BOARD AGM? Viviane Joynes, EQS Group Names, roles and email addresses
IR SOCIETY 3 INFORMED
CHAIR’S LETTER
The Investor Relations Society 5th Floor, 30 Coleman Street, London, EC2R 5AL Meeting the Tel: 020 7379 1763 www.irsociety.org.uk challenges ahead THE MANAGEMENT TEAM John Gollifer General manager I hope you all had a great summer and a chance to enjoy a bit of a break. I [email protected] managed to get away on a bit of an adventure in the Himalayas where I tested myself Alina Ardeleanu in all sorts of ways. While bumbling my way back to the coalface, it occurred to me Financial controller that IR is going to be tested in many ways in the coming months. We have many [email protected] things to grapple with such as MiFID II, Brexit, the changing landscape of investor Sophie Bennion interaction, governance, pay, SRI and many other issues as we promote our Content, marketing and professional development executive company’s equity case. [email protected] While we can only touch on a few of these in each issue of Informed I am pleased Robert Dann to see that there is a diversity of articles and interviews in this one that will help you Head of marketing and membership approach some of these challenges. It also explores some of the more left-field issues [email protected] that we may not come across on a day-to-day basis, but of which we should be Alison Hamilton aware as evolutions in our industry; in particular how access to non-traditional forms Head of events [email protected] of capital come more and more on to our radars. Laura Hayter I am particularly pleased to see that we are starting to focus on smaller companies, Head of policy and communications whose needs may be very different from that of a FTSE100 behemoth – something [email protected] that I think MiFID II will make even more stark. I am keen that the Society finds Janet Kelly innovative ways to tailor services to meet the needs of the wide diversity of Head of professional development companies listed in London and beyond. If anyone would like to help support new [email protected] initiatives targeted at smaller cap companies, please do get in touch. Rebecca White Marketing and membership executive [email protected] Teamwork and instincts There were two key things that got me through some hairy moments on my travels THE OFFICE HOLDERS this summer – teamwork and instincts. I have said before that IR in a company can David Lloyd-Seed be a fairly lonely and singular role. We can all learn from our peers, so at the risk of Chair sounding like a cracked record, please use the Society to network as well as the [email protected] excellent resources available on the newly revamped website. You’ll make new David Walker friends and often solve more problems than you thought you had. Each of us can be Deputy chair [email protected] more effective working as a team of IR professionals. As for instincts, that really comes from experience, but also from education and Fay Dodds Treasurer shared knowledge. The Diploma in Investor Relations (DipIR), which we launched [email protected] this summer, is intended to be a real examination of the skills and instincts of top- James Eves level IROs and I look forward to seeing how our first cohort of candidates do at the Company secretary start of next year. If you are interested in sitting for the Diploma, get in contact with [email protected] the team at Coleman Street as places are filling up. For a full list of the IR Society board and the This is the time of year I look forward to seeing the entries to our Best Practice committee chairs, see last editorial page. Awards. Each year we see companies pushing the boundaries in terms of setting out INFORMED their investment case ever more clearly while continuing to meet the increasing regulatory burdens – and it’s no mean feat to get the right balance. Best of luck to John Thistlethwaite Publishing assistant all those who make it on to the shortlist later in October. It won’t be long before we [email protected] are all getting together for our annual best practice awards dinner to celebrate the Alex Murray winners, so book your place for this most important IR celebration of the year as Publisher soon as you can. [email protected] So, enjoy this issue, best of luck with all the challenges and keep networking. ■ Informed is published on behalf of the IR Society by Silverdart Publishing Tel: +44 (0)1285 831 789 www.silverdart.co.uk Editorial enquiries can be addressed either to Laura Hayter or to Alex Murray. Views expressed in this publication are not DAVID LLOYD-SEED necessarily those of the Society. © 2017 IR Society
4 IR SOCIETY AUTUMN 2017 SOCIETY NEWS
Revd. Richard Coles to host 2017 awards
The host of the 2017 IR Society Best Reverend Richard is the author of Lives of Practice Awards will be the writer, the Improbable Saints and Legends of the broadcaster and Church of England priest Improbable Saints, accounts of some of the the Reverend Richard Coles (who is also more vivid and surprising holy men and one of the candidates on this year’s BBC women of Christian history. Weidenfeld & Strictly Come Dancing). Nicolson published the first volume of his Now in its 17th year, the annual awards autobiography, Fathomless Riches: Or How I dinner, to be held on Tuesday 21 Went From Pop to Pulpit, to wide acclaim in November at the Pavilion at the Tower of October 2014 and the paperback was London, will recognise and reward those published in September 2015. Reverend companies and individuals demonstrating Richard’s second book, Bringing in the excellence in IR. He read theology at King’s College Sheaves: Wheat and Chaff from my years as a Reverend Richard is a priest of the London, and after ordination worked as a Priest, was published in 2016. Church of England and Vicar of Finedon curate in Lincolnshire and subsequently at St The awards evening starts at 6.30pm and in Northamptonshire, where two of his Paul’s, Knightsbridge, in London. He is also includes a champagne reception, followed ancestors were vicars in the 17th century known for having been the multi- by a lavish three-course meal, the awards (the latter sequestered for malignancy). instrumentalist who partnered Jimmy ceremony and an opportunity to network late He has a parallel career in broadcasting Somerville in the 1980s band The into the evening. In 2016 almost 600 IR and currently co-presents Saturday Live Communards, which achieved three Top Ten professionals attended the dinner. on BBC Radio 4. He appears regularly on hits, including the Number 1 record and To book your place or table, visit television as a panellist on QI and Have I best-selling single of 1986, a club/dance www.irsociety.org.uk – or email Alison Got News For You. version of ‘Don’t Leave Me This Way’. Hamilton at [email protected] ■
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London markets at the centre of innovation
The pace of change in world markets is increasing, but London holds its place at the top – and this is good for IR, says John Gollifer.
fter another decent British summer, stock market seem to be holding up (at least, Apunctuated by the odd rainfall – and the at the time of writing). I recently heard at the thrills and spills of the summer sports 25th anniversary dinner of the Quoted calendar, how timely to turn our attention to Companies Alliance (QCA), that the AIM the final lap of 2017. Who would have market has surpassed $100bn in capital John Gollifer is general manager of thought that a 36-year-old and a 31-year-old raising. While the number of smaller listed The Investor Relations Society. would be vying for the number one spot in companies is going up, I hear from peers at [email protected] tennis? Or that Mo Farah, perhaps the other IR associations that the UK experience greatest distance runner of all time, would of falling numbers in main board listings and turn his attention to the long run too, the therefore, less issuance, is common across process undertaken by the good offices of a marathon? It just goes to show, doesn’t it, Western developed markets. number of business schools, including you aren’t finished until you decide? There are many reasons for this, including Edinburgh, Lancaster and Manchester. A key Hopefully, the same applies to our capital corporate actions resulting in market part of their approach is research-based from markets, the funding sources of which form consolidation at timely points in the market which we derive considerable value in the main theme for this issue. We should all cycle, some going back to being private and comparing and contrasting best practice be interested in making Mr Market work of course, other avenues of funding, across sectors and markets, as well as years. given that we are at an inflection point, including market disrupters. We explore The judging panels customarily meet in according to Illuminate Financial, a venture some of these in this issue. November and we hope to see you all on 21 capital firm. They say that in the face of November, that magical evening of the IR change, a theme we addressed at our recent Building up to the Awards community, when we announce the 2017 annual conference, the use of new market As we approach the final quarter of this winners. Our host for the evening will be the technology is becoming more prevalent. year’s Society calendar, top of the list, as riotous Reverend Richard Coles, one of the Indeed, in September, Deutsche Börse and always, is the Best Practice Awards dinner. new faces on Strictly Come Dancing! I hope Illuminate co-led a funding round, plus ça These awards are in the throes of short-listing you’re ready and all looking forward to an change! so do look out in early October for those evening of dance, ethics – yes, ethics – and The backdrop is that UK GDP continues companies that have managed to stand out of course, music! to grow, just. The pound sterling and UK from the initial screening and vetting, a Developing with the Society On the policy side, MiFID II continues to IR’s G5 in Toronto exert an overwhelming influence on our activities. We prefaced this before the annual conference and at the conference Each year we have a ‘G5 meeting’ of the with a number of sessions from a variety of five largest IR associations. This year it was perspectives. Most recently, at Club IR, we hosted by CIRI in Toronto on 10-11 August. considered the impact of regulatory change The value of the meeting is to be able to on consensus management. The big put a face to the names of our peers, not question is if there are any gaps in the least when this changes. We aim to market and a corresponding lack of compare and contrast our respective consensus available to the market, what markets, learn from one another by sharing does this mean for IR? Separately, the and the meeting can also put into Institute of Directors launches its third perspective how we are doing versus our edition of the Good Governance Report in peers. October – so do see if you’re in it. We’re proud to be launching a new L to R: JG; Kay Bommer (GM, DIRK); professional development offering with the Yvette Lokker (president and CEO, CIRI); IR Society’s Diploma in IR (DipIR). If the our host, Canadian moose!; Gary popular benchmark of the Certificate in IR LaBranche (president and CEO, NIRI); and (CIR) is a worthy test of your overall Ian Matheson, CEO AIRA). knowledge and competence, the Diploma is all about judgement and expertise at the
6 IR SOCIETY AUTUMN 2017 PERSONAL VIEW
highest level. We believe that this should The markets They need it and we need it. Let’s retain our include the softer aspects, such as defining One overriding theme in all these markets, sense of purpose, be meticulous in our qualities of the best IROs, presentation other than a natural interest in the global planning, keep our eye on that tennis ball skills and leadership. We also believe that impact of MiFID II, is the inexorable rise of and just go for it. I find a big swing is always senior IR practitioners should be ready for material non-financial matters and how to better than a small one! the Diploma. In considering the all- factor these into the IR conversation. And let’s not forget that London is still the important ethical element, given the Notably, these centre on ESG issues, number one global financial centre, Society’s recent introduction of a Code of including the consideration of mandatory according to the latest Global Financial Conduct for members, we expect the reporting and the next generation’s penchant Centres Index. We’re lucky to be in a Diploma to grow over time, just as the CIR for ESG matters and a growing sense of position of strength in a wonderful City that has over the course of the past decade. responsibility. That’s good. IR would appear continues to respond and evolve. I don’t We continue to work closely with our to be everywhere and rising in profile and expect that to change. counterparts in the UK and overseas. A relevance. It is also changing. We should be Thank you for your continued support. We busy calendar of events in August included proud to be in a position to play our part in look forward to a busy end to another sharing thoughts with AIRA (Australasia); supporting others and promoting the voice promising year. Do please keep in touch. CIRI (Canada); DIRK (Germany); and NIRI of best practice IR wherever we find it. Please let us know what you think of the (US) – see the box on the page opposite. To conclude, let’s not allow economics refreshed website and do respond to the In addition, on a recent visit to the Far and politics to get us down. Instead, let’s annual membership survey that is now East, I was able to join IRPAS (Singapore) face the markets as we always do, find the underway. I’m sure this will help us begin to and JIRA (Japan) for some of their seminars most effective ways to make them work and prepare for 2018. and meet their members. In the world of play our part. After all, we are IR Goodness me, the market never stops and IR, we are speaking an increasingly professionals playing the role of the direct we cannot stand still – so it’s lucky we’re common language. conduit between companies and investors. enjoying ourselves so much! ■
NEW IR SOCIETY MEMBERS – June to September 2017
The IR Society is pleased to welcome the Jack Gorman – Greencore Group Lang Messer – Sky following new members, who joined in the Peter Hamid – Maitland David Morant – Scorpio Tankers & Scorpio period to end-September 2017 Ebba Hellsten – Panmure Gordon Bulkers William Hobman – NewRiver REIT Yvonne Naughton – Sanofi Madi Abulgazin – Samruk-Kazyna Mary Hunter Hieroniumus – Orient Capital Jessica Norton – Panmure Gordon Chiara Albertini – Finsbury Max Hutchins – J.P. Morgan Cazenove Steph Osborn – Invicomm Robert Allen – Finsbury Ana-Maria Imbrea – Vimetco Management Gulbanu Ospanova – Samruk-Kazyna Karen Almeida – Conran Design Group Romania Katerina Parker – Hudson Sandler Aidar Amanbayev – Samruk-Kazyna Assel Ismagambetova – Samruk-Kazyna Andy Parnis – Finsbury Robert Arthur – PR Newswire / CISION Stephen Jacobs – Breedon Group Adam Rachlin – Experian Rayman Bains – MTCnovo Renee Jacobs – Actual Experience April Roberts – Alfa Systems Clare Banham – RPC Group Krupa Jadav – Britvic Joanne Roberts – Metro Bank Benita Barretto – Finsbury Peter Jenkins – Laird Andrew Robertson – Alfa Systems Frazer Blyth – Blue Water Energy Nicholas Jevons – Invicomm Maria Rodriguez – RD:IR Domenic Brancati – Georgeson Samuel Johnston – BNY Mellon Damon Rowan – BNY Mellon Ian Brown – QinetiQ Lucinda Jones – The Phoenix Group Kuhan Selvananthan – RD:IR Evan Byrne – Madano Partnership Ioannis Karadimitris – Mubadala Sophie-Marie Steenkamp – Invicomm Geeta Chambers – Inmarsat Investment Company Joanna Towers – Sound Energy Mitchell Chan – AstraZeneca Nicola Kaye – Orient Capital Izabella Uko- Erinn – RD:IR Eli Collis – Invicomm Aliona Kislaja – Orient Capital Julien Vignot – Vifor Pharma Ana Comerzan – Orient Capital Elizabeth Knowles – Vectura Zoe Warwick – QinetiQ Richard Crowley – Finsbury Amani Korayeim – Institutional Investor Sarah Wojcik – Apax Partners Megan Davies – J.P. Morgan Cazenove Donald Leggatt – London South East Nicholas Xenophontos – RD:IR Sarah de la Fuente – Numis Securities Limited Meryl Xue – Walgreens Boots Alliance Brenden De Matos-Ala – Imperial Brands Gary Leibowitz – Mckinsey & Co Aislinn Dickenson – J.P. Morgan Cazenove Sarah Lunn – RBS Katie Dimmock – Taylor Rafferty Vivienne Maclachlan – Alfa Systems For more information about Thor Erickson – Coca-Cola European Elvira Mami – Samruk-Kazyna becoming a member, please Partners Supriya Mathur – Independent contact Robert Dann at Tom Gadsby – Independent Andrew McGeary – Legal & General [email protected] or call Koenraad Geebels – Euroclear Lauren Mcllwraith – Alfa Systems +44 (0) 20 7379 1763.
IR SOCIETY 7 INDUSTRY NEWS INFORMED
Seeking consensus in MiFID II
The Society recently held a roundtable Corporate governance discussing the impact of MiFID II final rules and more specifically managing consensus reform in the context of MiFID II. While it remains In August, the UK government published its unclear how banks and indeed investors corporate governance reform proposals, will price research, meetings and following the publication of a green paper conferences, the majority of investment last year. The proposals are mainly houses have now explicitly said they will concerned with directors' remuneration Industry news briefing pay for research out of their own P&L. What and employee and stakeholder voice. is clear is that companies will need to take Acknowledging recent progress at this Selected key issues for IROs more responsibility for – and arrange – year’s AGMs, the government will not shareholder meetings directly. introduce further binding votes on director’s On the topic of consensus management pay. Instead, additional guidance will be Quarterly reporting falls more specifically, it isn’t clear to IROs issued to clarify the steps that should be how consensus will be compiled on taken when a firm encounters shareholder with focus on long term Bloomberg or through other sources as a opposition to pay awards of 20% or more. The Investment Association has published result of MiFID II. With a shrinking sell- The government’s response also analysis recently showing the number of side research market, the shape of confirmed their intention to introduce pay FTSE 100 and 250 companies issuing forecasts is bound to change including the ratios, which will require firms to reveal the quarterly reports since October 2016 has rise of crowd-sourced forecasts and pay ratio between CEO and average UK declined by 19% and 25%, respectively. through the possible use of algorithms. worker. On worker representation in the This follows on from their call on With the onus on corporates to maintain boardroom, the government will use the companies to stop issuing quarterly reports transparency through company compiled UK Corporate Governance Code to require and earnings guidance, which formed part consensus, we are definitely seeing the premium listed companies to adopt, on a of their wider Productivity Action Plan ascent of Investor Relations! ‘comply or explain’ basis, one of three launched in March 2016. In May this year, What is clear, is there is currently no employee engagement mechanisms: a the IA published its Long Term Reporting consensus on consensus, and the IR Society designated non-executive director; a formal Guidance, which sets out guidelines for is working with its members to identify how employee advisory council; or a director company reporting on productivity, capital best to address the gaps. The MIFID II from the workforce. The FRC has been allocation and culture. deadline of 3 January 2018 is fast invited to consult on this as part of its approaching. We only have 100 days until review of the UK Corporate Governance Takeover Panel proposes implementation, let’s be IR-ready! Code later this year. tighter rules on takeovers The Takeover Panel published a consultation paper relating to statements of The role of IR in remuneration debate intention and related matters. Proposals include bidders for UK stock market listed In August the IR Society responded to work to be done. Investors and companies must lay out more detailed The IA’s review of FTSE 350 AGM voting companies need to focus on broadening plans for their target, including location of in 2017. Their analysis highlighted that conversations between management its head office and research and while FTSE 100 companies have and shareholders that better reflect development investment. In addition, the submitted more conservative today’s investment landscape and new rules would also give companies, remuneration policies in 2017, the FTSE concerns. Remuneration and broader unions and other employee representatives 250 saw dissent amongst shareholders activities such as CSR and employee more time to respond to bids. The double from the 2016 level. John engagement should become consultation closes at the end of October. Gollifer, general manager of the IR conversation staples alongside financial Society, said: performance. “The recent Investment Association “This reinforces yet again the need FCA refers investment analysis suggests better alignment of for well-resourced IR functions capable consultants to CMA management and shareholder interests of facilitating productive two-way The FCA has asked the Competition and last year. This is good progress. conversations between management Markets Authority to investigate “However, there is still considerable and shareholders.” competition levels in investment consultancy and fiduciary management
8 IR SOCIETY AUTUMN 2017 INDUSTRY NEWS
services. This is the first time the FCA has made a Market Investigation Reference CIR and ICIR PASSES – June to August 2017 (MIR) to the Competition and Markets Authority under new powers which came The Society congratulates the following July in to force in 2015. The FCA has the power candidates who passed the CIR or ICIR Pranav Barve – The Ouray Fund to make a MIR when it has reasonable between June and August 2017. grounds to suspect that any features of a August financial services market 'prevent, restrict June Vanessa Ang – Tulchan Communications or distort competition'. The FCA had Jessica Chilcott – Merlin Entertainments Sabreen Flores – Royal Mail Group previously raised concerns in its interim Nick Christopher – Jones and Palmer Volodymyr Gaidash – JSC report on its asset management market Payal Dave – Strategic Growth Advisors UkrGazVydobuvannya study published in 2016. John Fahey – Speedy Hire Yan Huang – Independent Kiriaki Samanidou – FCA Naomi Maher – Jones and Palmer EU guidelines on non- Anna-Theresa Mwasha – NMB Bank Judith Moore – Independent Andres Vallejo Palacios – Orient Capital Eva Murphy – Lansons Communications financial disclosure Michael White – Teneo Blue Rubicon In June, the EU Commission adopted guidelines on the disclosure of For further information about the Society’s core qualification – the environmental and social information. Certificate in Investor Relations (CIR), including the international and UK These guidelines aim to help companies to certificates – please see our detailed professional development section, disclose relevant non-financial information in a consistent and more comparable which starts on page 40. manner. ■
Stand out from the crowd
Obtaining the Diploma in Investor Relations will demonstrate a significant degree of expertise in IR along with the broader skillset required to perform the role at the highest level.
To find out more or to request an application form, please contact Janet Kelly: [email protected] or call +44 (0)20 7379 1763
www.irs.org.uk/professional-development/diploma-in-ir
IR SOCIETY 9
INVESTOR OUTREACH: SHAREHOLDER MANAGEMENT:
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29 Throgmorton Street, London. T: +44 20 7060 5470 E: enquiries@quan!fire.co.uk AUTUMN 2017 MIFID II: THE COMPANY VIEW
MiFID II – what about MIFID II: THE COMPANY VIEW • Some companies may find the companies? themselves ‘under-covered’ by analysts. • Quality investor access will come at a cost to companies. Media attention has been focused on the impact of MiFID II on buy- and • IR teams should be excited by the opportunity that MiFID II creates. sell-side analysts. But what about companies, asks David Walker.
s an IR professional you are probably can be challenging for those companies Aby now sick of hearing about MiFID II. with limited sell-side coverage. How does It feels like it’s been coming forever, with this change if that coverage shrinks further each article or presentation predicting and more larger companies find themselves There will be a cost significant changes to the functioning of the under-covered (as many people predict)? equity markets. What does the market use as a reliable ‘ impact for And while it’s great to see something so frame of reference for a company’s fundamental to our roles covered regularly prospects if the credibility of market companies, as high in the press, one thing has struck me. I’ve consensus is reduced, or if the sample size heard a lot about the impact on sell-side of estimates is so limited as to render it analysts and brokers and about the impact useless? Does the onus shift to the quality access to on the buy side and their client’s cash, and company to find new, additional sources of rightly so. But there’s a third (quite coverage? If so, how? And what are the investors becomes important) party in the equity capital financial implications? More broadly, how markets which I haven’t heard as much does this impact on the financial media and a paid-for service about – listed companies themselves. its interpretation of company performance? Admittedly, the MiFID II regulations don’t We know initial headlines and media ’ apply to companies directly, but indirectly reaction can often be led by performance the impact is likely to be multi-faceted, against ‘analysts’ expectations’ and can be complex and significant and will be felt by key in terms of setting the tone of the longer It’s also something that, for the majority of corporate IR teams day-to-day. term coverage of how a business is companies, has historically been provided When it comes to consensus for instance, performing. by brokers for no cost, often at very high we already know that reliable consensus value add in terms of targeting, logistics More provocative analysts? and feedback. This could change though, Every sector has those analysts who are not and so, on a basic level, there will be a cost afraid to ‘take a view’. In some cases, that’s impact for companies, as high quality how they differentiate themselves and access to investors becomes a paid-for make themselves heard in an increasingly service. noisy, commoditised market, and who can How will companies, at a time of limited blame them? Being provocative means they budgets, deal with this added cost burden? stand out and are more likely to provide a By doing more in-house (again with likely service investors are willing to pay for post additional cost), or by paying brokers for MiFID II. Arguably we may see more of this something that’s always been free, or by in the future. But if their estimates engaging third party corporate access (deliberately or otherwise) materially differ providers who will also charge? And over- from company guidance, or if some of their and-above cost, how do they differentiate views or assertions are based on the impact and decide between the services on offer to they will generate rather than facts, then in ensure they are still meeting and engaging a world of reduced analyst coverage, that with the right investors, at the right times to impact could be magnified significantly. maximise impact? This could create or amplify So while you may be looking forward to misconceptions about a company and will early January 2018 when you can stop need to be dealt with by IR teams head-on, reading about ‘What to expect post-MiFID ensuring facts, counter-arguments and II’, it will be just the start in terms of impact specific company guidance is well on you, your role and your company. As IR David Walker is head of IR at Hays understood by investors. professionals the opportunity this presents and deputy chair of the IR Society. Corporate access is vital to ensure the should excite us – maybe then we will read [email protected] efficient functioning of the equity markets. all about it. ■
IR SOCIETY 11
We’re ready for MiFID II Are you?
We provide public companies and their brokers with the best information, advice and strategies to manage equity, debt and governance investors during these challenging times.
INFORM CONSULT ACT
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Richard Davies Investor Relations Limited Bridewell Gate 9 Bridewell Place London EC4V 6AW AUTUMN 2017 CORPORATE WEBSITES
How the corporate website has evolved into an important engagement tool
For several years companies have used corporate websites to present their business case – yet many get it wrong. Richard Dixon analyses a research study and offers advice to those wishing to maximise engagement.
hilip Fisher, eminent investor in the Pearly 1930s, an inspiration to Warren DIGITAL ENGAGEMENT Buffett and author of the investors’ ‘bible’ • Consistency instills trust and Common Stocks and Uncommon Profits, A good IR website confidence in the eyes of published in 1958, has said “The stock ‘ stakeholders. market is filled with individuals who should be both a • Focus should be placed on areas of know the price of everything, but the value creation in the company. value of nothing.”1 Nearly six decades communications • KPIs should be presented as a means later however, the value of something for outlining the future of the means everything. tool and an business. The corporate website, in addition to • Use of multiple channels will the annual report, has evolved into an reinforce the brand’s image and important engagement tool for investors; it influencer to aid direction. is often the first port of call for investors to find everything from the share price to the the company’s company’s strategy and investment proposition. reputation ’ A consistent corporate story company’s strategy is ‘one of the most A good investor relations website should effective ways to alleviate the pressure to be used as a both a communications tool maximise short-term returns’.4 and as an influencer to aid the company’s trust and confidence in the eyes of reputation. Communicating one stakeholders whilst satisfying their Our analysis consistent story strengthens the validity of information needs. But if told The aim of this year’s analysis is to show an organisation’s messaging. It inspires inconsistently, the integrity of the how some of the most material parts of messaging risks being lost. Black Sun’s the long-term corporate story from the fourth annual 2017 digital consistency annual report are consistently research on the FTSE 100 and FTSE 250 communicated on the corporate website. looks at ‘Communicating one message The research highlights which parts of the through multiple channels’.2 long-term corporate story companies tell most consistently across channels, and Why is it important? which areas are neglected. The research is Inconsistency is the ‘silent killer’ of presented through three chapters, defined corporate communications. The Edelman through a value creation lens in which the Trust Barometer has revealed that trust in corporate story is told: companies has collapsed, while expectations have increased.3 As • the first lens identifies how well stakeholders continue to be empowered companies are able to communicate through social media, there is more of a how they create value – demonstrated challenge for companies to control the through value created for multiple message. In the words of Larry Fink, CEO stakeholders; of BlackRock, “Companies have not • the second lens focuses on capturing sufficiently educated investors about the how the organisation plans for creating ecosystems they are operating in, what value revealed through strategy and their competitive threats are and how performance; and technology and other innovations are • the third lens examines how companies Richard Dixon is chief digital impacting their businesses”. are managed and consistently officer at Black Sun. Research from McKinsey has shown communicating the processes and [email protected] that regularly communicating a frameworks that aim to protect value.
IR SOCIETY 13 CORPORATE WEBSITES INFORMED
What was discovered? Communicating effectively how the One of the top highlights that we Companies are company generates value to a multitude discovered through the digital consistency of stakeholders – from employees, to research this year was that the value ‘ providing more suppliers and importantly – to its creation story must be carried over to the investors, is driven and communicated website. Between the FTSE 100 and the through the business model, strategy and FTSE 250, the consistency of content communications- ultimately the measures of its carried over from the annual report to the performance. Done well and reliably corporate website is similar – driven information through a multi-channel approach- it is a approximately 70% for both. The FTSE powerful opportunity to build trust by 100 outperformed the FTSE 250 in terms related to strategy strengthening the story. ■ of overall consistency. References: We found in general that companies are and governance 1. Robson, S., Great Investors (2017) The providing more communications-driven Motley Fool, retrieved 11-09-17 information related to strategy and ’ http://www.fool.co.uk/investing- governance. Additionally, the investment • the FTSE 100 scored higher overall in basics/great-investors/philip-fisher case is an opportunity for companies to consistency than the FTSE 250: 75% 2. Black Sun Plc (2017), The art of succinctly outline the key strengths or compared to 65%. communicating a consistent corporate differentiators that enable and support story, 4th edition, Black Sun Plc their ability to create value. We found that Opportunities 3. Edelman (2017), Edelman Trust the FTSE 250 carry it over to the website A key opportunity is for organisations to Barometer 4. Barton and Wiseman (2015), Where more consistently, scoring 75% compared define the company narrative through the boards fall short, Harvard Business to the FTSE 100’s score of 67%. For both annual report and strengthen the message Review, retrieved 11-09-17 indices, this represents the most improved online through the corporate website. https://hbr.org/2015/01/where-boards- consistency score compared to last year, Important areas include a succinct market fall-short up by 25% for the FTSE 100 and 15% for strategy, a clear business model and the FTSE 250. Other key stats from the defined KPIs. The market environment research include: contextualises the strategy, enabling stakeholders to assess it more effectively, • strategy triumphs over the business whilst KPIs and performance model – 73% of the FTSE 100 carry communicates the methodology and path over strategy to the corporate website, of how the company measures success. A but only 47% carry over business strong link between these three elements model; is needed to paint a clear picture for • investment case – it only appears on stakeholders of how well the organisation 31% of FTSE 100 and 26% of FTSE 250 plans to create value, and how well it has websites; and worked in the past. Black Sun’s new report.
INFORMED – editorial schedule 2017
The following topics and features are planned for the final issue of Informed this year. As is traditional for the magazine, the Winter issue is dominated by the coverage of the IR Best Practice Awards dinner. However we aim to offer a wide range of relevant IR topics in all issues. We are always interested to hear from members who would like to contribute articles or suggest ideas for inclusion.
Winter (December) – Best practice – latest developments, plus coverage of the Society’s annual best Issue 97 practice awards. Copy deadline – 17 November
In addition we will be covering our usual wide range of industry news, updates and interviews. For editorial enquiries, contact Laura Hayter – [email protected] For advertising enquiries, contact Robert Dann – [email protected]
14 IR SOCIETY CONNECT WITH INFORMED INVESTORS
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1204.9 03/16 ISS1 AUTUMN 2017 SPECIAL FEATURE Navigating a new landscape for IR
We explore the changing Implementing IR for all 17 Dealing with the issues of 29 responsible investment patterns in finance and classes of capital technology – with A changing investment 19 Using new technology to 31 landscape creates new embrace change implications for IROs challenges for IROs Bond investors and ESG 32 perceptions G The rise of alternative 21 Virtual AGMs E S funding and the implications for IR Could ‘going virtual’ be an 34 option for your AGM? The duties of ownership 25 D ebt IR and the shifting tides of capital allocations
Implementing IR for all IR FOR ALL CAPITAL • The IR role is expanding rapidly to include new capital classes. classes of capital • The role of the CFO is to maintain an efficient balance sheet, including a range of finance options. IR practice has been built e know the role of IR is expanding • IROs need to keep up-to-date with Wrapidly, with directors and heads of of all parts of the capital markets, primarily around equities, but IR increasingly being encouraged to work to service the company’s needs. other types of corporate capital closely with corporate finance and treasury are increasingly requiring the teams in the development and execution of attention of finance and IR financial strategy. The job today is far more than managing and when to access the capital markets and professionals, as Susan Davy and the financial calendar and making sure the for which product is becoming an Sarah Heald report. roadshows run smoothly. Knowing how important part of an IR professional’s role.
Susan Davy: the CFO’s perspective...
As CFO of an infrastructure company, we’re in the business of investment. Large funding requirements are a fundamental part of our day to day business and require a constant balancing act. It’s my job to maintain an efficient balance sheet, but one that’s flexible enough to enable us to grow. Part of that is selecting the right type of finance – long-term debt for long-term assets, shorter- term for liquidity and working capital management and equity as an important feature of a water company’s capital structure. Institutional investors are Susan Davy is chief financial officer at Sarah Heald is director of corporate affairs & increasingly sophisticated and Pennon Group. investor relations at Pennon Group. collaborative, they work across product [email protected] [email protected] types and themes so we need to think about
IR SOCIETY 17 A NEW LANDSCAPE INFORMED
the fact that the debt investor speaks to the guidance and insight that helps to inform portfolio manager of the income fund and timing and investor appetite for an issuance, I don’t see a lot of both seek the views of the in-house analyst. that’s ultimately what helps build an ‘ Given that is how our investors operate, my oversubscribed order book and deliver a distinction between team needs to work more closely too. I successful outcome. don’t see a lot of distinction between debt and equity IR anymore, I just see IR as a debt and equity IR core part of successful corporate finance. Sarah Heald: anymore, I just see We look to our IR team to help us match the the IR director’s perspective... right investor to the right product. The capital markets provide an excellent Working with corporate finance is an IR as a core part of source of additional funding for companies exciting opportunity to develop a wider like ours. In the last few years, we have skill set and play a greater part in shaping successful corporate raised both equity and debt. I’m often asked the future of a business, which can why we don’t have a credit rating and ultimately put you on a path to the C- finance whether that has an impact on our ability to Suite. At Pennon we’ve regularly accessed raise debt at attractive rates. We have the capital markets to finance our growth ’ considered the option of a rating, but they plans. Since I joined as IR Director, I have Similarly, in September this year we do have a significant cost attached. When been part of the core team working on wanted to raise funds for an additional we have one of the lowest costs of funding M&A, an equity placing, covenant £430 million of investment into two new in the water sector, why would we seek a renegotiations and most recently a £300 Energy from Waste plants. This time, we rating. That said, we do keep it under million hybrid that made history with the were looking for a shorter funding duration review. I would encourage companies, even lowest ever coupon in the sterling market. to manage our liquidity. We assessed the unrated ones like us, to look at the capital When we were acquiring Bournemouth options and decided on a three-year equity- markets. Water in 2015, a number of financing accounted hybrid. With a debt investor My experience has always been that options were open to us. After careful target list, IR, treasury and finance worked when a business with a compelling consideration we chose an equity placing. hand in glove to identify the right mix of & investment case and a strong IR function It made sense to pick equity not debt as investors, many of them the same . goes to the capital markets, it should water businesses need equity in institutions we have in our shareholder k achieve a good mix of interest between perpetuity. It was a very good example of register. The individual investors may be existing investors and new ones. Since I’ve why we work hard day-to-day in IR to different, but institutions are sophisticated been at Pennon, the overwhelming response make sure we know our investors and our and they work increasingly closely with we have had to equity and debt placings company’s investment case is well- their colleagues across product types and have been an important indicator of investor understood. Investors understood and themes. It’s the IR’s job to understand this backing for our strategy. That said, as CFO I supported our strategy, so they were ready and manage the relationship. wouldn’t have been confident going and willing to participate in the placing. For companies with a strong investment forwards if I didn’t have the IR intelligence The order book was substantially case, a clear strategy and a great IR team, and support I have. Within corporate oversubscribed and the placing shares had the capital markets are very much open and finance, we rely on IR to provide the a minimal discount to the share price. ready to be accessed. ■
Institutions are ‘ sophisticated and they work increasingly closely with their colleagues across product types and themes ’ Susan Davy and Sarah Heald working together at Pennon Group.
18 IR SOCIETY AUTUMN 2017 A NEW LANDSCAPE
A changing investment landscape creates new challenges for IROs
Investors are increasingly focusing on short-term holdings. Rachel Carroll explains this shift and assesses the movement towards passive funds – and the implications for IROs.
o you know who owns your Today the average US mutual funds Dcompany’s shares? It is a simple reports more than 100% annual turnover, SHARE OWNERSHIP question, but one that has become effectively selling the equivalent of every • The duration of share ownership increasingly difficult to answer. stock in its portfolio every 12 months. has fallen dramatically over the last The task of IROs used to be relatively Meanwhile, the largest ETFs hold on to 20 years. straightforward. Keep one eye on the shares for an average period of 29 days as • There has been a significant shift register of shareholders and maintain they track indices, with minimal regard towards passive funds – but it regular, if functional, communication with for the businesses in which they are remains to be seen whether this your investors. Today’s ownership invested. Adding to the complexity is the trend will last. environment is much more complex and fact that across the globe about one-third • The IRO’s role is ever expanding. challenging. Holding periods are of shares are held outside a company’s shrinking and records of stock ownership domestic market. are spread across markets with different The rise and rise of passive funds is disclosure requirements. The current well understood. Taken together with support for passive investing and closet indexers who describe themselves ETFs, and other passive strategies have exchange traded funds is channelling as active managers, but are really passed their sell-by-date and that other investment into an ever-diminishing pool tracking an index, they have left the qualitative factors which can be of shares in the biggest companies, dedicated investors so prized by IROs as identified by an active manager versus a causing a bias against mid- and small-cap a very rare commodity indeed, quantitative screen will always stocks. accounting for just 8% of the total outperform disproportionally. The length of time that investors investor pool, according to Nasdaq. typically hold on to shares is on the These are the investors who take large Irreversible change? decrease. As recently as the year 2000 the stakes in a relatively small number of It is still an open question whether the average holding period for US stocks was companies and hold them for more than shift from active to passive is a fashion two years, according to the Wall Street two years on average. Some fund that will eventually run its course, or Journal. managers also believe that index funds, whether it represents an irreversible change in the investment landscape. At this point, the weight of money tells its own story. Passive funds now account for a third of mutual fund assets, up from a The length of time quarter in just three years, according to figures compiled for FTfm by ‘ that investors Morningstar, the data provider. Active funds, by contrast, have seen their hold typically hold on to on the US investment industry decline steadily since 2013, despite total assets rising 14% to $9.8 trillion over that shares is on the period. And yet, active funds are still a powerful force in global investment. decrease. As recently So how can IROs navigate today’s complex environment? IROs need to as the year 2000 the think beyond traditional ownership identification, to a service that integrates average holding ownership, targeting and analysis. They need the best information, built on period for US stocks comprehensive data and powerful Rachel Carroll is global head of investor analytical tools. They must integrate relations at Edison group. was two years ownership and targeting insights into [email protected] ’ their analysis, and to be able to count on IR SOCIETY 19 A NEW LANDSCAPE INFORMED
the support of unbiased capital markets decisions. By mapping actual investment professionals with deep experience. The It is more important behaviour, IROs can see where individual input of experienced analysts is critical for preferences lie across company understanding the different factors affecting ‘ than ever to look fundamentals. This deeper level of your firm’s complex ownership. understanding of investment decisions will highlight targeting opportunities in Who are the decision makers? below the company familiar names while uncovering potential The ability to actually see ownership new pools of capital. changes and trends is critical to level to individual The ownership environment is likely to understanding whether buying and selling become ever more complex, as investors activity is stock-specific or part of a broader funds and identify nail their colours to increasingly trend. It is more important than ever to look sophisticated models and systems in their below the company level to individual relevant decision quest to remain ahead of the pack while funds and identify relevant decision maintaining the tightest control on costs. makers. The nature and frequency of makers The challenge for IROs is to anticipate communication with passive investors may these changes and build appropriate be different to communication with active ’ internal structures to insulate against investors, but they cannot be ignored. It Increasingly, IROs recognise the shifting market dynamics. They must avail requires a greater degree of transparency crossover between ownership analysis themselves of the latest analytical tools and frequency of communication to ensure and targeting. Understanding a while ensuring they do not lose sight of messages are clearly absorbed by the manager’s investment mandate is the first the value of experienced independent, market. step in knowing what drives investment conflict-free advice. ■
A collective of creative people promoting design in business communications. www.invicomm.com | [email protected] | +44(0)207 205 2586 | 229 Shoreditch High Street, London E1 6PN AUTUMN 2017 A NEW LANDSCAPE
The rise of alternative funding and the implications for IR
There is a growing interest in alternative funding options for businesses, including innovative instruments like cryptocurrencies. Here Michael Chojnacki and Julian Macedo offer some guidance.
he value of assets managed by the Supply-demand matching Tglobal investment management First, we can expect to see improvements in ALTERNATIVE FUNDING industry and the amount of assets that sit how companies target investors. Currently • Global assets under management are within global mandates continue to rise the tools for efficiently understanding who is expected to rise sharply by 2020. year on year. Research from PwC predicts interested – and to what level – in a given • ‘Crowdfunding’ platforms may help to that global assets under management will investment story, whether on a deal or non- match investors with companies. rise to $101.7trn by 2020, from roughly deal basis, do not exist today. Technology • Blockchain technologies are already $70trn today. This will be primarily driven drives the matchmaking process across a being trailed – and may become the by pension funds, high net worth multitude of industries. The finance industry backbone to the financial system. individuals and sovereign wealth funds, has arguably been one of the slowest to • Initial coin offerings and all of whom have been steadily increasing embrace its potential to improve the process cryptocurrency are having an impact the global component of their investment for the 40,000-odd listed companies and on financial markets. portfolios. more than 100,000 institutional investors. Tapping into this capital efficiently, Potential benefits include increased however, is far from straightforward for accuracy of targeting, a greater degree of global issuers. As a result there has been a access and control, reduced cost and a retail investor segment. Investment-based surge of interest in alternative funding more diversified range of options. ‘crowdfunding’ (or market place investing methods and new technologies, which – both equity and debt) has existed in aim to boost speed, efficiency and Peer-to-peer funding platforms for listed limited forms for several years through transparency throughout the capital companies online sites that allow investors to invest markets. Where exactly is the impact Second, we can expect improvements in in specific projects predominantly for likely to be largest for investor relations how companies reach and engage new private companies. This model allows teams? pockets of liquidity, especially within the companies to raise capital to fund new ideas and more importantly, cultivate new clients who now feel they are participating in the growth of their businesses. These new marketplaces may work in tandem with existing processes. The
The finance ‘ industry has arguably been one of the slowest to embrace its potential to improve the Michael Chojnacki is co-founder of Julian Macedo founded The ECM Team in Closir and co-founder of the Middle East 2016 to provide in-house ‘deal captain’ process Investor Relations Society. transaction execution services. [email protected] [email protected] ’
IR SOCIETY 21 A NEW LANDSCAPE INFORMED
crowdfunding platform SyndicateRoom attending meetups around the world, has revealed a tie-up with the London The rise of targeting groups and leaders in certain Stock Exchange that will allow communities. Once they got on board... ‘crowdfunding investors’ to participate in ‘ cryptocurrency as a about 9,000 people participated in the initial public offerings and placings on the crowdsale”. Might traditional equity main market of the LSE and AIM. capital raising follow this in certain liquid means of circumstances, for instance where the Blockchain applications fundraising is well flagged? For Third, we can expect vast improvements exchange, instance, a company with a well- in efficiency and transparency in a variety prepared public market-style equity of shapes and forms. One such form will irrespective of the story can spend time educating be Blockchain technology applications potential target investors for up to two within the equity and debt capital underlying use- years pre-IPO. The public phase of the markets, which aim to tackle the vast IPO could then be significantly cut. inefficiencies which adversely affect the case, suggests that • The rise of cryptocurrency as a liquid industry today through a centralised, means of exchange, irrespective of the digital ledger. underlying use-case, suggests that The scope of Blockchain’s pilot projects corporates could corporates could treat cryptocurrency in this area has grown exponentially over as one of the currency options for the the last three years. While these projects treat cryptocurrency fundraising. In August this year, Fisco have so far generated more hype than used a 200 bitcoin 3-year bond (worth tangible applications, the benefits that as one of the $860,000 at the time) for an internal ‘distributed ledger’ technology can bring M&A transaction, as a test case with to the broader industry seem appealing currency options Japan’s approval of bitcoin as legal enough to continue with its funding and tender. development. The prize on offer, as one for the fundraising • Primary transaction processes are slow, consultancy recently put it, is a new and investors who are not existing architecture, where all capital market ’ clients of the banks managing the deal participants work from common datasets, are usually not able to participate. on an almost real-time basis, and where Initial coin offerings and fundraising Blockchain authentication of the supporting operations are either Lastly, in niche areas, we can expect new investors’ know-your-customer (KYC) streamlined or made redundant. blockchain based applications to support status would broaden the addressable To take one example of what is already the fundraising process. Initial coin investor base. And this is just one being done, BNP Paribas has designed a offerings (ICOs) are a fundraising exercise application. In July this year, Daimler pilot scheme permitting private for cryptocurrency tokens such as Bitcoin used a private version of Ethereum in a companies to issue securities on a or Ethereum, and have received a lot of test case to issue a €100m one-year primary market with e-certificates, press in recent months. Speculators bond. This used Blockchain to manage developing a ‘live’ share register and continue to chase this new asset class. the whole transaction cycle from access to a secondary market all via While these might at face value seem like origination, distribution, allocation and blockchain technology. We should expect attractive fundraising structures, they are execution of the loan agreement, to the similar progress in the near term in public ultimately of limited interest in a confirmation of repayment and of markets, with increased accuracy in the corporate context. The recent moves by interest payments. identification and recording of the SEC (stating in July that shareholder movements and interactions. cryptocurrency tokens can be securities) The journey from today’s system to a and China (banning fundraising through new paradigm for our industry will take ICOs in early September), mean that an time. The obstacles to be overcome along ICO is unlikely for the time being to work the way may be significant, and it is far in an established corporate outside of a from clear what will ultimately emerge. new tech startup scenario. However there is little doubt that For IR officers, there are nevertheless technology will eventually transform our some newly emerging areas of interest industry faster than we think. We can take which are raised by the cryptocurrency clues as to how this may happen from experience. examining just how communications, music, transportation, or even video • ICOs have turned the traditional rental industries have been transformed in fundraising process on its head, the last five years alone. marketing for a long time then As in those industries, the finance fundraising in a matter of hours. The co- industry will come face to face with huge founder of Ethereum said “We managed opportunities, the beginnings of which we to grow our base of ambassadors by can see today. ■
22 IR SOCIETY
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AUTUMN 2017 A NEW LANDSCAPE
The duties of ownership and the shifting tides of capital allocations
Every year more and more capital is entering the private equity arena. Richard Davies looks at why this is happening – and what it means for the IR community in the future.
n a previous article here, I wrote about equity (PE) firms accounting for 9% of Ithe shrinking size of the UK public M&A deals, according to data from OWNERSHIP AND TIDES company market in terms of the number of Thomson Reuters, and money has been • Investors are moving money into the issuers across the main market and the flooding into the asset class. Given the private equity sector as they seek Alternative Investment Market (AIM). spectacular returns of PE at between 15% higher returns. Although there are allegedly a raft of IPOs to 20%, compared with the relatively • The ever-increasing level of regulation coming through in London in coming expensive equity markets worldwide, it is in traditional markets is putting months, there are as many companies no wonder that investors are choosing to investors off – this includes the great departing the market due to M&A as move their money into this hitherto unknown: MiFID II. arriving, so it is a case of swings and obscure sector. • Over the coming years there may be a roundabouts. For those that are interested, Equity valuations have continued to requirement to have IROs at private the number of UK-domiciled UK-listed climb across the world, despite companies in the UK and overseas. public companies on the London Stock increasingly difficult economic conditions Exchange across both markets today is just in some markets, prompting some short of 1,940 issuers, down from near commentators to foresee a bubble about 3,000 at the start of the century. to burst. I would argue that the dwindling heading into alternative asset classes, such One of the themes of this journal is the size of the global equity market in terms of as private equity. growth of alternative funding of the number of issuers, a trend across most The banks are taking private equity ever companies, and the move from equity to of the Western economies including the more seriously, with more private equity debt and private equity as the UK, is correlated to this continued divisions being set up alongside the equity predominant source of capital for growth upswing. Equity issuers are becoming teams. The recent announcement that companies. Private equity in particular has more of a rarity, and the money seeking venerable City stockbroker, Panmure been having a spectacular year thus far them out is growing in absolute terms, Gordon, bought out in April 2017 by globally. The first half of 2017 saw private despite a greater proportion of assets former Barclays CEO Bob Diamond and the Qatari royal family, is setting up an investment banking division focusing on private company fundraising, is indicative of the trend. I understand that most London banks and brokers are looking to follow suit, knowing the way the equity Equity valuations wind is blowing. The traditional model of private equity ‘ as the purchaser of failing businesses – have continued to cutting costs, extracting value, maximising efficiency and then rolling them back to climb across the the market – is now just part of the PE story. Private equity these days may not world, despite have as its goal the realisation of value through flotation, at least in the short- to increasingly medium-term. Venture equity is now very much the fashion. difficult economic An exciting investment experience The last two years have seen a significant Richard Davies is founder and conditions in some shift in the asset allocation processes of managing director of RD:IR. markets family offices and high net worth [email protected] ’ individuals towards private equity, largely IR SOCIETY 25 A NEW LANDSCAPE INFORMED
at the expense of investment in hedge companies from the global buy side, there funds, whose returns in troubled markets We will see IROs at are many markets in the world where these post-2008 have not turned to be as brilliant values fight hard to be heard in the macro as the costs attached thereto would ‘ a vast array of environment. The private equity model otherwise suggest. Some commentators suits those who may not wish the spotlight suggest that investing in private equity in of governance to be shone on their terms of start-ups and growth businesses private companies actions. provides high net worth individuals and the Inevitably, one must mention MiFID II as fund managers that manage their money in the UK and US, the great unknown in this transformation. with a more visceral and exciting While MiFID II is not the main driver for investment experience than public equity, as the growth in the the move to private equity/debt funding and with much greater potential returns. model, its impact will certainly exacerbate Of course, the traditional PE model of private equity the change, given that smaller public buy-outs and flip-outs still prevails, and is companies are going to find life more proving ever more popular, with increasing market continues difficult due to decreasing levels of numbers of private equity firms and funds research and institutional investor interest. being set up in the UK and US – and ’ This may all seem a scary prospect for increasing numbers of companies either the IR community, which traditionally has choosing to remain private or delisting. been equity-focused but I would argue that If you take away the historical advantage Out of the spotlight in a few years’ time, we will see IROs at a of an attractive realisation of value through There is also the wider cultural issue of the vast array of private companies in the UK conversion of private to public equity and flight from the Enlightenment values that in and US, as the growth in the private equity add back all the fees, scrutiny and relative many ways the joint-stock company and market continues and the parameters of PE inflexibility of being a public company, one the governance culture within which it is investment among institutional investors can understand that in these challenging ensconced represents: transparency, equity, change from the traditional “buy, strip and times of regulatory burden, staying or going probity. flip” model to a longer-term sustainability- private would seem an attractive option to While we see no diminishing of the driven approach. many management teams. move towards greater scrutiny of public This is, after all, the era of change. ■ Whether you are BIG or small, you need IR...
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26 IR SOCIETY
AUTUMN 2017 A NEW LANDSCAPE
Dealing with the issues of responsible investment
With socially responsible investment (SRI) increasing in importance, Carole Crozat answers key questions about handling environmental, social and governance (ESG) matters.
With the rise of passive investments, is it important to feature in the SRI indexes? There are about a hundred public SRI It looks like a RESPONSIBLE INVESTMENT indices worldwide, the most famous series ‘ • The majority of active funds use in Europe being the FTSE4Good, the DJSI chicken-and-egg mainstream indices to benchmark and the MSCI ESG. There are no their performance. commonly accepted, recent figures about situation: who will • Mainstream portfolio asset managers the size of passive assets directly still take a short-term view on replicating SRI indices, but as the indices be first to break the investments, largely disregarding ESG referred to above are based mainly on issues. best-in-class approaches they have no big • ESG issues should be part of all long- appeal to core passive investment circle of short- term company communications. strategies. In 2014, Novethic estimated that exchange-traded funds (ETFs) tracking SRI termism? indexes represented just 0.1% of global ’ the core SRI investment community. ETF AUMs. ESG indexes used by large Ambitions to achieve the full integration of institutions are often custom-made and Why do mainstream portfolio asset ESG into mainstream investments explain incorporate their own exclusion criteria. managers rarely ask questions on the obsession with financial materiality – Of note, the vast majority of active funds sustainability during meetings? but responsible investors should only use mainstream indices, not SRI indices, to Having attended many mainstream consider them on top of stakeholders’ benchmark their financial performance. presentations, I have a few thoughts on considerations as, for such investors, ESG this. First, some ESG questions are so impact metrics are at least as important as integrated in the business model financial ones. (questions on emissions in auto, human capital in people businesses, customer Are SRI investors fashion victims? satisfaction in telecoms) that they are not Well, aren’t we all to some extent? Yes, tagged as such by CROs. Secondly, some themes have become so prevailing mainstream portfolio managers ‘leave it to that some responsible investors appear to the experts’, i.e., their dedicated ESG be losing all sense of practicality, for teams in separate meetings with IRs and example harassing companies in low CSR managers. Thirdly, CEOs and IRs tend carbon-intensive sectors about CDP to see their main investors at least as often questionnaires in a rush to measure as they report, whereas ESG issues belong portfolio carbon footprints. Another to a world that extends well beyond the example is the recent hyping up of the next quarter. Thus, it looks like a chicken- SDG (Sustainability Development Goals) and-egg situation: who will be first to framework. break the circle of short-termism? What are the bright and dark sides of the What do investors mean when speaking SDG framework? about materiality? After mainstream ESG financial Again, the acceptance of ‘materiality’ (dis-)integration, the sustainable varies in accordance with investors’ development goals (SDG) framework objectives: short-term financial materiality seems a commendable tool for refocusing of ESG factors and mid-/long-term responsible investors on non-financial financial materiality of ESG factors. There impacts and positive social and is also the environmental, social and environmental contributions. Yet here too, Carole Crozat is head of responsible governance materiality to stakeholders. we have seen many actors painting an investment research at Exane BNP Paribas. Most companies communicate proactively overly rosy picture of the serendipitous [email protected] on the latter, as it is the most critical for alignment of corporate initiatives with the
IR SOCIETY 29 A NEW LANDSCAPE INFORMED
SDGs. However, hardly any are challenge you’ (not only ESG investors, questioning the extent to which their but also customers, junior staff, some activities and their consequences as a NGOs and academics, positive disruptors whole are compatible with these goals. and the media). Their agendas may differ We have seen The risk is of seeing the framework being widely from yours, but these are the ‘ misused and watered-down to an entirely stakeholders who may help you many actors new level of ‘green-washing’ and of efficiently keep track of your seeing core SRI investors throw the baby performance. painting an overly out with the bathwater. Lastly, questioning the alignment of CSR programmes and broader corporate rosy picture of the How can the corporate sustainability communication and policy engagement manager be an agent of change? appears necessary. Is your organisation serendipitous To help break the chain of short-termism, really walking the talk – and preparing companies could explore incorporating for the long journey – or covertly trying more long-term ESG considerations into to cancel the trip? alignment of their core investor communication, and These are just a few suggestions from provide more details on the way the an outsider. SRI professionals still have corporate initiatives challenges evolve through time with much to learn from companies about regulation, strategic positioning and meeting the daily challenges they face in with the SDGs economic cycles. their efforts to thrive in a resource- Another, complementary approach is to constrained world while accommodating ’ be more open to ‘those who can contradictory expectations. ■
DEVELOPING THE INVESTOR RELATIONS SOCIETY’S FUTURE LEADERS DELIVEPROGRRAMME The Deliver programme (Developing future leaders through investor relations) is aimed at high potential IROs who are seeking the next THROUGH step up in their career. This is a six-month activity-based modular programme in three parts, INVESTOR with other supporting activities and meetings throughout the programme. RELATIONS Deliver continues to offer unique exposure to captains of industry and other thought leaders. In addition, working with IRO peers means creating your own personal network to compare notes with during and after the programme.
For more information or to register your interest, please contact John Gollifer at [email protected] or call +44 (0) 20 7379 1763
30 IR SOCIETY AUTUMN 2017 A NEW LANDSCAPE
EMBRACING CHANGE Using new technology • MiFID II brings both challenges and opportunities to corporates and their engagement with investors. to embrace change • The SME sector is already seeing a reduction in analyst cover. • New technologies are allowing MiFID II regulation and broader market changes mean that IROs should companies to easily distribute their message to a wider audience. look to new technologies to help stay ahead, as Tom Tyler explains.
R is undoubtedly in a period of transition. Arguably these changes will be felt most business. One such example is GVQ ILong gone are the days that IR was an critically in the SME sector where the in- Investment Management. GVQ ‘is a afterthought for companies, something that direct consequence of regulatory changes is specialist manager of public equity funds, was handled part-time by an executive in already having an impact on the coverage of created with the objective of adopting the finance team. For companies across the the SME market. According to Bloomberg private equity investment techniques and market cap spectrum the impact of high data, out of 1,000 corporates listed in North adapting them for use in the public quality IR is well understood. It has even America and Western Europe with a market markets’. been attributed an intrinsic value by the cap over $100m and one or less analysts, Finally, for those companies interested in institutional investment community, who 500 have no analyst coverage at all. an IPO but perhaps worried about post- believe superb IR can add as much as 10% Compound this with the reversal of risk listing coverage and capital, we are seeing a to the share price and poor IR can remove appetite in the market in general, the number of platforms being launched that 25%, according to Rivel Research. outperformance of passive funds and the enable institutional fundraising in the Like many parts of the financial services increased costs now imposed on buy-side private space. industry, the requirements on IR are being firms from regulatory changes and one can These platforms are becoming more impacted by both MiFID II regulatory see how IRs in the SME space and appetite prevalent in response to the need from the changes and broader changes in the for their story from their traditional audience investment community to find alternative structure of the financial markets. This is has been challenging. instruments to deliver yield in the current affecting how companies engage with super-low interest rate environment. With investors, brokers and other agents to tell Information arbitrage multi-billion dollar valuations of private their story. Perhaps most impactful is the But of course with change comes companies, such as UBER and Spotify, it is contraction of commission-based revenue opportunity, for all parties. The loss of clear that the investment community needs in the secondary markets, bringing both waterfront coverage of corporates should to structure their operations to take challenges and opportunities to corporates provide an information arbitrage on the buy- advantage of this capital growth. and their engagement with investors. side, where those investors with the means London Stock Exchange Group (LSEG) to conduct their own research will find true recently launched ELITE Club Deal, the value investing opportunities. Conversely, private placement platform for ELITE from the perspective of the IR, these companies and professional investors, challenges present an opportunity for them allowing these companies to streamline to differentiate against companies that are their capital-raising process and access a not filling the void of information left by the different investor base than they would have brokers. By working with PR firms and done through an IPO. Not necessarily an technology platforms such as ELITE Connect, alternative to listing but complementary to companies can distribute their messages not it. Notable is that LSEG has recognised the only to existing investors but also a much changing funding landscape and developed broader universe of investors that is not an innovative solution to bridge a funding commercially viable for the broking model gap and complement those challenges. to cover. As Seth Godin, the famed marketer, Another impact of these changes is the commented: ‘If your audience isn’t listening increased adoption of principles more akin it’s not their fault it’s yours.’ Similarly, in this to the private equity world. For example new paradigm for IR, it may be that there is portfolio construction, where funds are a requirement for a change in methodology, specifically building concentrated portfolios process and audience but it seems certain and exploiting deep valuation arbitrage with that those who embrace change will stand long-term investment horizons as they out from the crowd and perhaps find a new search for the proverbial ‘diamond in the audience in a new way. ■ rough’. Again, this presents SMEs with the Tom Tyler is global head of sales at opportunity to form real long-term To learn more about London Stock ELITE Connect. relationships with alternative investment Exchange Group’s IR innovations, get in [email protected] funds, who will become partners to the touch with Tom Tyler.
IR SOCIETY 31 A NEW LANDSCAPE INFORMED
Bond investors and DEBT IR AND ESG • ESG performance is increasingly viewed as critical to investment decisions. ESG perceptions • Additional ESG disclosures and engagement would be useful. • IROs have a great opportunity to be ESG issues are of increasing interest to holders of fixed income assets, proactive. and there are opportunities here for IROs, as Lorraine Rees explains.
oth debt IR and environmental, social Band governance (ESG) have evolved Table 1: As a bondholder, would Table 2: How important is a significantly over the past decade. you be interested in meeting with company’s ESG performance when On the debt side, where investor contact in companies to discuss ESG issues? taking fixed income related the past may have been more focused around investment decisions? Yes, on existing fixed income 21% a specific issuance, today issuers recognise investments Critical 15% the benefits of an ongoing debt IR programme. Yes, on potential new fixed 5% In the process of determining 57% Equity investor interest on sustainability is income investments Secondary 28% well established with ethical indices like the Both 56% Dow Jones Sustainability Index (DJSI) and the Not critical 0% FTSE4Good now approaching their 20th No 18% anniversaries. Debt investors are, by their long-term focus, intrinsically aligned to a long-term sustainable strategy, and we are Looking at broader debt markets, Mike discuss ESG issues on existing and/or new starting to see more focus in this area. Tyrell of SRI-connect comments: investments (see table 1, above). The success of the dedicated green bonds “Debt investors certainly are looking more Furthermore, the survey showed that 15% segment (where the issue is used to finance at sustainability trends. The stimulus created of debt investors currently viewed ESG green projects) on the London Stock by the success of green bonds and the PRI’s performance as critical in their decision- Exchange, launched in June 2015, efforts to introduce ESG into credit ratings making process but this looks set to increase demonstrates the level of potential interest. seems to be paying off.” as 57% were in the process of determining Green bonds are currently one of the fastest In addition, the PRI’s recent report Shifting its impact (see table 2, above). growing market segments internationally perceptions: ESG, credit risk and ratings – with 14 new green bonds issued in London part 1: the state of play suggests plans for The details of ESG issues during 2016. further activity in the next year. The actual topics of interest to ESG investors, We are already seeing portfolio managers whether from a debt or equity perspective, and their ESG colleagues working in a more will vary depending on the sector and the joined-up manner rather than as two separate investors own benchmarks and portfolio teams. This impacts IR engagement activity focus, but the core topics include matters and disclosures, and applies to the debt side such as board diversity, executive as well as from an equity perspective. “As remuneration, risk management as well as investors further incorporate ESG factors into the environmental impact. fixed income investment decision-making, Some measures are easily quantified, such companies need to strengthen their as carbon emissions or board gender understanding of their investors ESG analysis, and disclosure is relatively sensitivities,” says Pia Gowland of Morrow straightforward. Information on the board is Sodali. one area where additional, narrative disclosure would be useful, for example a The growing importance summary of the results and actions plans But it’s early days, and most IR efforts in the from an annual board evaluation. ESG space are still directed towards equity IROs have a unique opportunity to be side. How many debt investors does your proactive in this area. By ensuring debt chairman see as part of his governance investors have the ESG information they roadshow? The need to engage in this space need and engaging directly with them on the is increasingly evident. Morrow Sodali subject, we can lead the way. ■ conducted a survey at the start of the year on Lorraine Rees is managing director of ESG integration into fixed income. This Lorraine Rees hosts the IR Society Debt IR IR-connect. indicated that 82% of bondholders would be course and co-hosts the new Introduction to [email protected] interested in meeting with companies to PR course, see page 38 for more details.
32 IR SOCIETY Enhancing engagement & optimising shareholder response
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VIRTUAL AGMS Could ‘going virtual’ be • Benefits of virtual AGMs include increased investor access, a reduced carbon footprint and cost savings. an option for your AGM? • The US has seen virtual AGMs grow significantly over the last couple of years. As part of the digital revolution, companies are looking at the merits of • Hybrid AGMs could be a popular holding their annual general meetings ‘virtually’, writes Viviane Joynes. middle ground for UK companies.
s the traditional AGM still fit for purpose? to participate virtually via an app or online consideration is ensuring that the articles IFor the majority of companies the simple platform and conference call. They listened of association permit it. A number of answer would probably be no. Many only to a presentation, were able to ask questions companies have made changes to their have a handful of private investors attend and voted, all electronically. articles this year enabling them to hold their event. The majority of shareholders vote Jimmy Choo repeated the exercise this AGMs virtually in the future. It’s worth by proxy ahead of the meeting, meaning that year, a clear sign of confidence in this noting that there has been no opposition to very few attend to cast their vote on the day alternative format to the traditional AGM. this by shareholders approving the and engage with the board of directors. EQS was delighted to be involved and resolution. For companies coming to While this could be interpreted as a lack of provide the solution both years in partnership market, we recommend that the power to interest, there are practical considerations to with Lumi. hold a virtual AGM is enshrined in the take into account for many shareholders. While the benefits of a virtual AGM will articles, even if there is no intention to use These include their geographical location, vary from issuer to issuer, they can be it in the short term. time away from the office and access to summarised as follows: While virtual AGMs may be new in the transport to name a few. As a result, they are UK, internationally, this is a growing trend. unable to attend even if they wish to do so. • increasing investor access to the AGM is For example, in the US over 200 companies one of the most important points. have had virtual AGMs so far this year The benefits of going virtual Shareholders can participate from compared to only 90 in 2015. These For many years holding a physical AGM was anywhere regardless of their location; include blue chips like Ford, Hewlett the only option. Since August 2009 • corporate governance best practice – Packard and Paypal. Investors with companies incorporated in the UK have been enabling increased investor participation international investment portfolios will able to hold virtual AGMs as a result of and access to the board is in line with therefore already be used to the concept. section 360A of the Companies Act 2006 corporate governance best practice; At EQS, we often receive questions from inserted by the Shareholder Rights • environmental considerations – less travel companies about the older demographic Regulations 2009. by shareholders and the board (if the board and not wanting to exclude them from Last year Jimmy Choo plc was the first members don’t all travel to one location) being able to attend the AGM. On the company to hold a fully virtual AGM. No reduces the company’s carbon footprint; contrary, we would argue that the virtual physical location. Shareholders were invited • time and cost savings – for issuers who pay AGM actually further increases accessibility for a venue, there could be significant cost for this group and this is supported by the savings. As board members and latest internet access statistics from the shareholders don’t have to travel, they save ONS (dated April 2017). In particular, on time and money; and recent internet use by the 65 to 74 age • improved shareholder perception through group in the UK has increased from 52% in efficient use of modern technology. 2011 to 78% in 2017. Moreover, 90% of households now have Hybrid is also an option internet access in the UK and A fully virtual AGM might not be appropriate unsurprisingly almost all adults aged 16 to for all companies and this will to some extent 34 years (99%) were recent internet users. depend on the makeup of their shareholder This clear progress should help persuade base. For example, companies who have a more reticent companies that barriers to high level of attendance at their AGM and digital progress have all but been who are looking to further increase access to eliminated. their AGM may wish to consider the hybrid option: in-room and virtual shareholder Is the virtual AGM right for your company? attendance at the AGM at the same time. In We believe that fully virtual and hybrid fact, EQS Group does this for its own AGM. AGMs are the future. Since the Jimmy Choo AGMs, interest from FTSE 100 to AIM Viviane Joynes is managing director of And finally, some considerations companies has been very high and we’re EQS Group Ltd. For listed companies who wish to go ahead looking forward to working with more [email protected] with holding a virtual AGM, the first companies. ■
34 IR SOCIETY Prove your value with the
CCIertifRcate in Certificate in Investor Relations Investor Relations from the UK IR Society
Worldwide, more than 1,200 successful candidates have demonstrated their expertise, commitment and professionalism by completing the IR Society’s Certificate in Investor Relations (CIR) and International Certificate in Investor Relations (ICIR) qualifications – you can too!
The CIR is an internationally recognised For more information: core qualification for current IR email [email protected] practitioners and those new to IR. visit www.irs.org.uk call +44 (0) 20 7379 1763 • Provides professional recognition • Enhances career development • Demonstrates competence @IRSocietyUK
www.irs.org.uk PROFESSIONAL DEVELOPMENT INFORMED
IR Society professional development
Our sponsor
Deutsche Bank’s Depositary Receipt group is pleased to sponsor The Investor Relations Society’s 2017 Professional Development Programme for another year. The following three American Depositary Receipts (ADRs) are a means for non-US companies to raise their profile with US investors, make their shares more easily available to them and raise new capital pages contain in the US. Deutsche Bank’s ADR business is dedicated to providing excellent service for companies with ADR programmes. Deutsche Bank provides all the services necessary to set up and run a successful ADR course details, programme plus a range of added services to ensure that both the issuing company and its investors get the most from the programme. This includes providing specialist investor relations testimonials and support to companies with ADRs to assist them in communicating with their US investors. information on For further information please contact: Zafar Aziz, director, head of DR IR advisory group new courses [email protected] or +44 (0) 20 7545 6619
The IR Society’s professional development programme comprises a suite of courses and qualifications for IR professionals at every stage of their career. Our courses will ensure that you have the tools, techniques and knowledge to perform your role as effectively as possible and our qualifications provide globally-recognised endorsements of your skills, competencies and capabilities.
Courses
IR Fundamentals Core IR Skills Advanced IR
5 courses 8 courses 7 courses
Qualifications
Certificate in Investor Relations Diploma in Investor Relations
36 IR SOCIETY AUTUMN 2017 PROFESSIONAL DEVELOPMENT
Upcoming courses 2017 KEY TO COURSES • IR Fundamentals • Core IR Skills For more information on all of our courses and for 2018 • Advanced IR course dates please visit www.irsociety.org.uk • CIR Revision Course
Oct 10 • 9am-1.30pm Oct 11 • 9.30am-4.30pm Oct 18 • 9am-1pm
Energise your investor targeting Demystifying company accounts ESG/SRI: Sustainability issues for and valuations – module one and IROs module two
Oct 19 • 9am-1pm Nov 2 • 9am-1pm Nov 7 • 9.30am-4.30pm
Best practice in IR Introduction to PR IR for personal and executive assistants
Nov 9 • 9am-5pm Nov 13 • 12.30pm-2pm Nov 15 • 9am-5pm
IR regulation and compliance Club IR Workshop IR regulation and compliance essentials - modules one: IR essentials - module two: toolkit to comply with regulation transactions and listing obligations
Nov 23 • 9.30am-4.30pm Nov 28 • 9am-1pm Nov 30 • 9am-1pm
CIR revision course Should we be afraid or not? Understanding investors, Hedge funds & sovereign wealth analysts and the financial media: funds developing your key IR stakeholders
Dec 5 • 9am-1pm Dec 7 • 9.30am-4.30pm Dec 8 • 9am-1pm
IR regulation update Introduction to IR and the IR script writing for management financial markets presentations
37 PROFESSIONAL DEVELOPMENT INFORMED
NEW COURSE INTRODUCTION TO PR: 2 November – 9am to 1pm
Understanding the goals and challenges of other departments is a key step for an IRO to become a trusted adviser to the company. One of the closest relationships is usually with the PR and communications team. We are therefore delighted that experienced PR professional, Ann Wright, who has worked in newspapers and at the BBC, is leading our new Introduction to PR course on 2 November. She will be sharing a PR perspective on managing routine news flow, handling breaking news and surviving crisis Course host Ann Wright, situations. It will also look at tools and techniques for aligning co-founder and owner of Rough PR and IR and cover a number of practical issues. House Media. Details This course is aimed at new and experienced IR professionals who are looking to expand their knowledge of, and engagement with, the broader communications environment. No prior knowledge of PR is required. The cost is £319 + VAT for members and £469 + VAT for non-member. You will gain 20 CPD points for attending this course. If you would like to see more about this course, or our Co-host Lorraine Rees is education programme generally, please visit our website or get managing director of in touch. IR-connect.
COURSE TESTIMONIAL IR Regulation and Compliance Essentials
The two-day regulation course was invaluable in helping to make sense of the regulatory environment that companies find ‘themselves in today. The course does not assume any prior knowledge and starts by setting out a clear landscape of the regulatory bodies and their aims. It touches on all the key areas of focus for anyone working in IR, including insider lists, class tests, disclosure obligations and transactions. There was a huge amount of material covered over the sessions, with engaging discussions in the classroom drawing on the rich practical experiences of the tutor and fellow Sabreen Flores is IR analyst at students. Overall, a most enjoyable course and highly Royal Mail. recommended. ’
38 IR SOCIETY AUTUMN 2017 PROFESSIONAL DEVELOPMENT
COURSE TESTIMONIAL Advanced Writing skills for IR
I found the advanced writing skills course a breath of fresh air. Taking time out to review your approach to writing is a valuable ‘exercise and Jon Harris’ credentials make him the ideal teacher. After 10 years as head of investor relations at Petrofac, I felt the need to re-energise my writing and make it more engaging. After just a few hours on the advanced writing skills course, I feel more confident and focused in my approach to writing. The course emphasised the importance of taking time to re-read and edit your own work several times, but also the benefit of a collective approach. Jonathan Low is head of investor The course provided a reminder of the common pitfalls to relations at Petrofac. avoid and highlighted the tools available to improve your writing. (This testimonial has a Flesch Reading Ease of 54!) More importantly, Jon Harris demonstrated with practical examples how to write clearly and concisely, while avoiding jargon. I would recommend anyone involved in IR, annual reports or similar to attend this course. ’
In-house training courses The IR Society can also tailor a number of our training courses to meet your particular needs and deliver them in-house. This is a cost-effective way of ensuring staff are kept up to date with the latest regulation, IR principles and IR best practice.
Bespoke training courses Based on your training brief we will develop an entirely unique course utilising content and materials most relevant to your particular needs.
Tailored courses We will adapt our existing courses to suit your specific training requirements. Save money by having one of our existing courses delivered in-house for your team.
Contact Janet Kelly for more information at [email protected]
For more information and to book a course, see www.irsociety.org.uk/professional-development or contact Sophie Bennion at [email protected] or call +44 (0) 20 7379 1763.
IR SOCIETY 39 CERTIFICATE IN INVESTOR RELATIONS INFORMED
If you’re looking for that next challenge, the CIR will certainly provide it!
What is the CIR? Key dates for 2017/18 The Certificate in Investor Relations (CIR) is an internationally recognised qualification for For bookings, contact Janet Kelly at the investor relations profession. This is a valuable benchmark for those already in the [email protected] profession and an essential prerequisite for those considering a move into investor relations, either in the UK or overseas. CIR exam dates Tuesday 10 October 2017 Why should I sit the CIR? Tuesday 5 December 2017 Tuesday 13 February 2018 Obtaining the Certificate in IR: • Demonstrates competence and growing Tuesday 24 April 2018 expertise Tuesday 10 July • Provides international recognition as a Tuesday 9 October 2018 qualified IR practitioner • Enhances career development Tuesday 11 December 2018 What will I learn? CIR revision course dates Thursday 23 November 2017 • Understand the fundamental principles • Know the legal requirements regarding Tuesday 23 January 2018 and practice of investor relations the financial calendar Tuesday 10 April 2018 Tuesday 26 June • Know the main regulations concerning • Be familiar with the fundamentals of basic Tuesday 25 September 2018 the structure, governance and behaviour accounting, ratios, valuation and Tuesday 27 November 2018 of listed companies investment analysis
• Be able to identify the different types of • Be aware of the requirements for UK shares and shareholders listed companies conducting investor relations in major overseas markets • Understand the role of stock exchanges • Be aware of the required ethical and • Know the regulations governing the professional standards expected of conduct of investor relations and in investor relations practitioners particular the disclosure of information What does it cost? CIR exam cost: IR Society members, £499 + VAT Non-members, £649 + VAT
Process for taking the CIR
Register and pay = Optional Attend ‘Demystifying company accounts’ and/or the ‘IR regulation and compliance essentials’ courses
Receive study guide and mock Attend revision course Sit final exam exam details
40 IR SOCIETY AUTUMN 2017 CERTIFICATE IN INVESTOR RELATIONS
Studying for the CIR Home study Mock exam
The CIR is a self-study qualification based on the IR Society’s As a revision aid, you can take an online mock examination comprehensive CIR study guide. It is assessed by an examination which will help you assess whether you have grasped the key comprising 60 multiple-choice questions, based on the topics set principles. These questions do not cover every aspect of the CIR out in the syllabus. examination. The study guide provides a comprehensive overview of the main subject areas that you will need to know in order to pass the CIR examination. It is intended to support other learning sources Revision course such as courses and reading material. The study guide summarises the required knowledge for each subject area. On average, 40 This one-day course for registered candidates who have hours of self-study is recommended to complete the CIR. You completed the CIR study guide and are preparing to take the CIR should also consider attendance on other relevant IR Society exam will allow you to revise subjects for the examination and courses to expand your knowledge base and understanding of the assist you with any questions you may have on specific sections of topics covered. the syllabus. Optional courses
You may find it useful to take the following two courses prior to the IR regulation and compliance essentials revision course and exam as part of your preparation. This two-day course provides an analysis of current legislation and A discount on these two courses is available for registered CIR forthcoming changes. candidates. Module One: Will provide a basic IR toolkit, covering the Demystifying company accounts and valuations fundamental areas of regulation and compliance that affect IR. This two-day course will provide foundation knowledge in understanding a set of accounts. Module Two: Will look at more specific areas and situations, such as IPOs and transactions. You will learn how the legal compliance Module One: Will clearly explain accounting jargon, together with requirements for IR communications fit together, how they are the relevance and limitations of financial statements. You will learn applied in practice, and what best practice standards are. how to identify which key numbers are important in communicating your company’s story and the issues that need explaining. “The course made my interest in IR increase hugely – all my objectives were met and there Module Two: Will apply this foundation knowledge to understanding what really influences valuation of companies; both were a lot of high quality discussions. A lot financial and non-financial factors. It will give an introduction to the key principles behind valuation methods and a comprehensible covered, and delivered very well, particularly explanation of Discounted Cash Flow and what factors influence it. Cost of capital will be clearly explained and we will discuss how on topics which could be considered dry!” analysts really use and interpret financial information.
“This course exceeded my expectations. Not only was it very informative, it was highly enjoyable. The course tutor is excellent, and made complicated concepts easy to understand. Great value for money – challenging, yet satisfying course”
If you have any questions or would like more information, please contact: Janet Kelly, head of professional development at [email protected] or call +44 (0) 20 7379 1763 or visit our website: irsociety.org.uk/professional-development/certificate-in-ir
IR SOCIETY 41 CERTIFICATE IN INVESTOR RELATIONS INFORMED
CIR TESTIMONIAL Volodymyr Gaidash
It was my initiative to apply for this course, and I hope that the knowledge I received will be useful to my employer. I partly ‘financed my study, so I was very motivated to study in the evenings and over the weekends. I spent half of my two-week holiday going through the study guide over and over again, and I passed my mock exam three times, the score going up each time, giving me more confidence. All in all, preparation for my study took 80 hours. It was very useful to attend all the courses that the CIR programme entailed, in particular ‘Demystifying company Volodymyr Gaidash is head of accounts’ helped me to refresh the accounting and finance communications for Ukraine’s knowledge needed for the basics of the IR profession and for largest gas production company, UkrGasVydobuvannya (UGV). passing the exam. The course on regulatory issues was very useful UGV is a production division of in understanding the EU and UK regulatory requirements and state-owned Naftogaz Group grasping the IPO process. The timing of the courses has been which plans to conduct an IPO, extremely well-chosen – there was slightly more than a month subject to Ukrainian Parliament’s approval in the next several years. between them, and the revision course helped to consolidate the UGV is the fourth largest knowledge and to highlight the areas requiring special attention. company in Europe by gas It was very useful to attend all the courses and to make helpful reserves, and is planning to invest $4bn in its operations by 2020. connections which I am sure will grow into cooperation in the Volodymyr is the first Ukrainian to future! ’ receive the CIR. The International CIR or ICIR
We offer an international syllabus of the CIR which captures the essential elements common to international markets. The CIR currently runs in the UK, Hong Kong, Indonesia, Malaysia, the Middle East (CIRO), Nigeria, Russia, Singapore and Sri Lanka.
Hong Kong Indonesia & Sri Lanka Malaysia Middle East www.hkira.com [email protected] www.mira.com.my www.meira.me [email protected] [email protected] [email protected]
Russia Singapore www.irfr.ru www.irpas.com CONTACT [email protected] [email protected] For more information about our international CIR partners, please contact Janet Kelly on [email protected] or call +44 (0) 20 7379 1763
42 IR SOCIETY AUTUMN 2017 DIPLOMA IN INVESTOR RELATIONS
What next, after the CIR? Diploma in IR
In 2017 we launched a new, senior-level, What format does the examination take? There are two written examinations: Principles of IR and IR in professional qualification: the Diploma in Practice, followed by a brief presentation. Each exam consists Investor Relations (DipIR). It is designed to of a compulsory section followed by two essay questions examine expertise in IR and to complement the selected from a choice of topics. existing competency-level Certificate in IR (CIR) What are the examiners looking for? and DELIVER leadership programme. We Evidence of:
believe that this suite of qualifications will • Skills, knowledge and experience of the candidate, across provide further support for the growth in status the topics identified in the syllabus and importance of the IR profession. • Familiarity with the UK’s legislative and regulatory environment and corporate governance standards • Detailed knowledge of best practice IR and how it adds The DipIR has been designed and developed by those with value significant IR and educational experience. Successful • Ability to communicate clearly in writing, identifying and candidates must demonstrate their knowledge and justifying their key messages experience across the wide range of competencies required • Management and leadership potential for a senior role in IR: including technical and • Understanding of their company and industry communications skills, personal attributes, and managerial and leadership abilities. The broad nature of the topics How does the DIR fit with the CIR and the DELIVER selected reflects the expected seniority of candidates. programme? Simplistically, passing the CIR demonstrates competency in Who should consider taking the DIR? IR. The DipIR takes this a step further and tests expertise in IR. Typically candidates will have at least five years’ experience The DELIVER programme looks to build leadership skills. in IR and will have successfully completed the CIR. Completion of the DipIR should support a move into a senior For further details, please contact Janet Kelly at the IR Society role within IR, either in-house or at a service provider. [email protected]
Stand out from the crowd Obtaining the Diploma in Investor Relations will demonstrate a significant degree of expertise in IR along with the broader skillset required to perform the role at the highest level. Contact: [email protected] or call +44 (0)20 7379 1763 www.irs.org.uk/professional-development/diploma-in-ir
IR SOCIETY 43 EVENTS INFORMED
The IR Society events ZWVUZVYLKI`6YPLU[*HWP[HS programme 6YPLU[*HWP[HSPZHNSVIHSSLHKLYPUZOHYLV^ULYZOPWHUHS`ZPZ LX\P[`THYRL[PU[LSSPNLUJLWYV_`ZVSPJP[H[PVUPU]LZ[VY JVTT\UPJH[PVUHUKZOHYLOVSKLYTHUHNLTLU[[LJOUVSVN` Events news TPYHXSLPZV\Y\UPX\L^LIIHZLKWSH[MVYT[OYV\NO^OPJOV\Y The events below are scheduled throughout the year for IR Society members. Further events will be WYVK\J[ZHYLKLSP]LYLKVYTHUHNLK(JJSHPTLKMVYP[ZPU[\P[P]L announced in due course. For the latest information KLZPNUHUKPU[LNYH[LKM\UJ[PVUHSP[`P[JVTWYPZLZHJVUZ[HU[S` and to register for our events, please visit L]VS]PUNZLYPLZVMTVK\SHYWYVK\J[ZLHJOKLZPNULK[VHZZPZ[ irsociety.org.uk/events JVTWHUPLZ[VLMÄJPLU[S`HUKHJJ\YH[LS`PKLU[PM`WYVÄSL[YHJR THUHNL[HYNL[HUKJVTT\UPJH[L^P[OPU]LZ[VYZWV[LU[PHS PU]LZ[VYZHUK[OL^PKLYPU]LZ[TLU[JVTT\UP[` Events contact 1 S S I
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Alison Hamilton at [email protected]
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Events overview for September to November
OCTOBER Best Practice Awards dinner Tuesday 21 November – 6.30pm to 12am IR Webinar – “Alignment of Interests” between Now in its 17th year, the IR Society Best Practice Awards Dinner is an companies, shareholders, employees and customers opportunity for the IR community to recognise those companies and Tuesday 17 October – 12.30pm to 1.30pm individuals who are leading the way in the field of investor relations. Free for members and non-members The evening starts with a champagne reception, followed by a In an era when strong corporate governance is moving from ‘preferable’ lavish three course meal, the awards ceremony and an opportunity to to ’essential’, companies and their IROs should consider whether a network late into the evening. reversion to the old alignments might make their life a little easier. The 2016 dinner saw more almost 600 IR professionals gather to celebrate the successes of the shortlisted companies, network with IR Networking – Securing the Human: Greatest asset or peers and colleagues and look back on another busy year in the weakest link? world of IR. Wednesday 18 October – 8.30am to 10am Free for members and £50 + VAT for non-members IR Seminar – Beyond governance? A look at how shifting It is often said that a company’s greatest asset is its employees but it is models in markets threaten transparency Wednesday 29 November – 8am to 1pm often viewed by attackers as the easiest way through a company’s Free for members and £100 + VAT for non-members defences. We will look at why this is the case and what are the most Deutsche Bank, 23 Great Winchester Street, EC2N 2DB effective ways to mitigate this risk. This seminar will explore the effectiveness of the equity capital IR Networking – Pub Night markets, including the rise of private equity and debt as a source of alternative funding. Thursday 19 October – 5.30pm to 8pm This is an informal networking evening for peers to get together for a relaxed evening at the pub. If you would like to bring a friend along Club IR in 2017 who is not a member please do contact Alison Hamilton directly on [email protected] and we will be happy to accommodate. The IR Society is holding a series of lunchtime workshops for more senior delegates on a range of themes such as: NOVEMBER • Key elements of the IR calendar • Managing C-suite issues IR Networking – Pub Quiz • Improving investor engagement Wednesday 8 November – 6pm to 8pm • Updating your IR toolkit The Bull and the Hide, 4 Devonshire Row, London EC2M 4RH Sign up to our annual pub quiz run by our quiz master Rob Club IR is open to anyone working in IR or a related profession, Blackwood. Either enter as a team of maximum 5 people or an who is keen to share their experiences, build their professional individual and trust us to put you in a team! network and enhance their career in investor relations.
44 IR SOCIETY AUTUMN 2017 DIRECTORY
The IR Service Providers Directory
The Informed IR Service Providers Directory features those organisations who offer key services to the IR community and shows the categories in which they have chosen to appear. This section is published in parallel with the service provider section on the IR Society website – www.irsociety.org.uk For more information, please call John Thistlethwaite on +44 (0)1285 831 789 or email [email protected]
Key to IR SERVICE PROVIDERS by category
ADR depositary services Executive search Equiniti Opinion research Issuer Direct BNY Mellon Broome Yasar Partnership Euronext Instinctif Partners Nasdaq Corporate Solutions Deutsche Bank EMR Fairvue Partners Investor Insight Meetyl Europe Citi Fidelio Partners Fidelio Nasdaq Corporate Solutions Orient Capital Latchmoor Search Financial Times Orient Capital Q4 Inc. Annual reports Taurus London FTI Consulting QuantiFire RD:IR Addison Group Taylor Bennett Heartwood Partners RD:IR Black Sun VMA Investis Rivel Research Group UK Regulatory Disclosure Capita Asset Services Investor Insight EQS Group Design Portfolio Fund management Maitland Proxy and corporate support Instinctif Partners Emperor Design Exane BNP Paribas Makinson Cowell Capita Asset Services PR Newswire EQS Group Meetyl Europe Equiniti FleishmanHillard Fishburn Internet services MHP Instinctif Partners Video FourthQuarter Addison Group Nasdaq Corporate Solutions Orient Capital Addison Group Friend Studio Black Sun Orient Capital ProxyCensus BRR Media Instinctif Partners Brighter IR RD:IR RD:IR Crossfire Investis BRR Media Taurus London Design Portfolio Langsford Corporate Design EQS Group Taylor Rafferty Publications EQS Group Luminous FourthQuarter WorkCast FleishmanHillard Fishburn FleishmanHillard Fishburn Lyonsbennett Investis World Television Friend Studio Friend Studio MSLGROUP MerchantCantos Zebra Corporate IR Magazine World Television MerchantCantos Nasdaq Corporate Solutions Communications Financial Times Zebra Corporate WorkCast Webcasting Communications Zebra Corporate Investor roadshows Public relations BRR Media Communications Capita Asset Services EM EQS Group Board advisory EM FleishmanHillard Fishburn Euronext Capita Asset Services Investor communications Heartwood Partners Finsbury Investis Citigate Dewe Rogerson Brighter IR Meetyl Europe FTI Consulting Nasdaq Corporate Solutions Fairvue Partners Crossfire ingage Instinctif Partners Orient Capital Fidelio Euronext Instinctif Partners MHP PR Newswire Investor Insight FleishmanHillard Fishburn Nasdaq Corporate Solutions MSLGROUP Q4 Inc. Taurus London FourthQuarter RD:IR Nasdaq Corporate Solutions WorkCast Friend Studio PR Newswire World Television Corporate broking Heartwood Partners IR for small caps Capita Asset Services Instinctif Partners Brighter IR Registrars Website development Liberum PR Newswire BRR Media Capita Asset Services Addison Group Panmure Gordon Q4 Inc. Capita Asset Services Equiniti Black Sun Taurus London Citigate Dewe Rogerson Brighter IR CRM databases Valor IR Consulting EM Share register analysis Clare Williams Associates Euronext Zebra Corporate EQS Group Instinctif Partners CKD ingage Communications Euronext Investor Insight Design Portfolio Investor Insight Fairvue Partners Q4 Inc. Emperor Design Nasdaq Corporate Solutions Investor presentations Heartwood Partners EQS Group Orient Capital Capita Asset Services Investis Shareholder research FourthQuarter Q4 Inc. Crossfire Investor Insight Capita Asset Services Friend Studio RD:IR Design Portfolio Meetyl Europe Clare Williams Associates Heartwood Partners EM Nasdaq Corporate Solutions EM Instinctif Partners CSR/sustainability Emperor Design Q4 Inc. Equiniti Investis Addison Group EQS Group RD:IR Fairvue Partners irFactory Capita Asset Services FleishmanHillard Fishburn Heartwood Partners Luminous Design Portfolio Friend Studio Mobile technology Instinctif Partners Lyonsbennett EM FourthQuarter Addison Group Nasdaq Corporate Solutions MerchantCantos FleishmanHillard Fishburn Heartwood Partners Brighter IR Orient Capital MSLGROUP Friend Studio Instinctif Partners BRR Media Q4 Inc. Nasdaq Corporate Solutions Instinctif Partners Luminous EQS Group QuantiFire PR Newswire Luminous Lyonsbennett Euronext RD:IR Q4 Inc. Lyonsbennett Media Sterling ingage Rivel Research Group WorkCast MSLGROUP irFactory Zebra Corporate Investor relations Orient Capital Shareholder targeting Communications Debt IR Addison Group Q4 Inc. Capita Asset Services Citigate Dewe Rogerson Aura Financial Citigate Dewe Rogerson EM Citigate Dewe Rogerson News providers Equiniti Fairvue Partners Clare Williams Associates EQS Group Euronext Instinctif Partners EM Q4 Inc. Fairvue Partners More information at: Orient Capital EmCo Heartwood Partners irsociety.org.uk/resources/ EQS Group Instinctif Partners service-providers
IR SOCIETY 45 DIRECTORY INFORMED
ADDISON GROUP – www.addison-group.net – annual reports, CAPITA ASSET SERVICES – capitaassetservices.com – annual reports, CSR/sustainability, internet services, investor relations, mobile board advisory, corporate broking, CRM databases, investor technology, video, website development presentations, investor roadshows, IR for small caps, proxy and corporate support, registrars, shareholder research, shareholder targeting AURA FINANCIAL – www.aura-financial.com – investor relations Capita Asset Services’ consultants partner Specialist financial communi cati ons and investor rel at i ons consultancy with you to deliver the most efficient Transactions – Sustainability – Issues management – Conti nui ng obligations Investor Relations programme for your business. Targeted value-added IR services: Equity story Loren Dufton Our online portal ‘WebIRPlus’ lets you Benchmarking Tel: +44 (0)207 954 9611 Perception studies manage your investor relations activity in Investor outreach [email protected] one convenient and portable digital Tailored Board training www.capitaassetservices.com platform. www.aur a-financi al.com | [email protected] | 0207 321 0000 CITI – www.citi.com/dr – ADR depositary services BLACK SUN – www.blacksunplc.com – annual reports, CSR/ sustainability, investor presentations, video, website development Citi Depositary Receipt Services is a leader in bringing Black Sun is a stakeholder quality issuers to global capital markets and on communications company. We help promoting depositary receipts as an effective capital organisations define, articulate and markets tool. Learn more at citi.com/dr communicate how they create value for stakeholders. We deliver inspiring Ayden Dagg, Managing Director, Tel: +44 (0) 20 7500 5709 Contact: Sarah Myles communications that reach, engage EMEA Depositary Receipts Email: [email protected] Business Development Manager and influence stakeholders. We T: +44 (0)20 7736 0011 create more valued organisations in E: [email protected] the eyes of stakeholders. CITIGATE DEWE ROGERSON – www.citigatedewerogerson.com – board advisory, debt IR, investor relations, IR for small caps, BNY MELLON – www.bnymellon.com/dr – ADR depositary services shareholder targeting
BNY Mellon acts as depositary for more Citigate Dewe Rogerson is a full service than 2,500 American and global investor relations consultancy offering depositary receipt programs, acting in independent advice, analysis and execution. partnership with leading companies from Our team combines a variety of backgrounds 68 countries. Sandra Novakov, Director to bring an unparalleled breadth of financial +44 (0)20 7282 1089 markets expertise and an in-depth Learn more at www.bnymellon.com/dr [email protected] understanding of the international investment www.citigatedewerogerson.com community’s IR requirements.
BRIGHTER IR – www.brighterir.com – internet services, investor CLARE WILLIAMS ASSOCIATES – www.clarewilliamsassociates.com – comms, IR for small-caps, mobile tech, website development investor relations, shareholder research, website development
Investor relations and investment ● Market perception studies. communication services: we provide an ● Investment communication across a independent, experienced and skilled range of channels. fund manager’s perspective with an ● Bespoke research support and training. established track record. ● Flexible tailored approach. T: +44 (0) 141 419 9900 E: [email protected] W: www.clarewilliamsassociates.com
BROOME YASAR PARTNERSHIP – www.broomeyasar.com – executive CROSSFIRE – www.wearecrossfire.com – Investor communications, search investor presentations, video
BRR MEDIA – www.brrmedia.co.uk – Internet services, IR for small DESIGN PORTFOLIO – www.design-portfolio.co.uk – Annual reports, caps, mobile technology, video, webcasting CSR/sustainability, investor presentations, video, website development
Contact: [email protected] or call brrbbr media +44 (0) 20 3435 7010 for more information. Looking for a
Specialist digital media company delivering live streamed and on demand broadcasts. complete corporate design-portfolio.co.uk In-house production, proprietary media management and webcasting platform. communications [email protected] Distribution across multiple platforms and websites. partner? +44(0)20 7536 2015 Focused on the IR needs of public companies. P DEUTSCHE BANK – www.adr.db.com – ADR depositary services
Deutsche Bank The Informed service providers directory is Providing all the support necessary to set up and run a successful Depositary Receipt programme. published in tandem with the online directory, For a more personal, specialist service please contact us. available for members and non-members at Zafar Aziz – Tel: +44(20)7545 6619 Email: [email protected] irsociety.org.uk/resources/service-providers
46 IR SOCIETY AUTUMN 2017 DIRECTORY
D.F. KING – www.dfkingltd.com – Board advisory, opinion research, FAIRVUE PARTNERS – www.fairvuepartners.com – board advisory, proxy and corporate support debt IR, investor relations, IR for small caps, shareholder research, shareholder targeting With 74 years’ experience in securing shareholder support, D.F. King is a global FIDELIO – www.fideliopartners.com – board advisory, executive leader in proxy solicitation, M&A and corporate search, investor relations governance advisory. Fidelio Partners is an International London +44 20 77 76 75 74 dfkingltd.com Board Development and Executive Search consultancy. We have a deep understanding !"#$%&'% %(%)&#*&#"$+%,"#-+$. of what shareholders and stakeholders Link Group expect from the leadership team, as well as Contact: Gillian Karran-Cumberlege expertise in the Finance, Communications, +44 (0) 20 7759 2200 Strategy and Governance functions. As EM – www.em-comms.com/en – CSR/sustainability debt IR, investor such Fidelio has a recognised world class [email protected] capability in sourcing senior Investor presentations, investor relations, investor roadshows, IR for small caps, www.fideliopartners.com public relations, shareholder research Relations professionals.
EMCO – www.em-co.ru/eng – investor relations FINANCIAL TIMES – www.ft.com – investor relations, publications
EmCo is a Moscow-based consultancy, specialising Reach and engage the Financial Times audience of in financial communications and investor relations. financially-aware decision-makers and affluent shareholders from across the world. We deliver a full range of IR services and focus on FT Investor Relations service – targeted multimedia consolidated reporting, research and studies, communication packages that give you maximum visibility. investor communication. Contact: $ANIEL &ISH ON www.em-co.ru/eng • +7 (495) 980 06 84 • [email protected] DANIELFISH FTCOM
EMPEROR DESIGN – www.emperordesign.co.uk – annual reports, FINSBURY – www.finsbury.com – public relations website development FLEISHMANHILLARD FISHBURN – www.fhflondon.co.uk – Since 1996, Emperor has been designing and annual reports, CSR/sustainability, investor communications, producing straightforward printed and online investor presentations, public relations, publications, video annual reports, where accessibility of information, strong navigation, clarity of communication and value are the key objectives. Tel: +44 (0)207 729 9090 +44 (0)121 262 3830 Call us today for a free consultation. +44 (0)131 220 7990 www.emperordesign.co.uk
EMR – www.emrrecruitment.co.uk – executive search
EQUINITI – www.equiniti.co.uk – investor relations, proxy and corporate support, registrars, shareholder research, shareholder FOURTHQUARTER – www.fourthquarter.co.uk – annual reports, targeting internet services, investor communications, investor presentations, website development EQS GROUP – www.eqs.co.uk – annual reports, internet services, investor presentation, investor relations, IR for small caps, mobile technology, news providers, UK regulatory disclosure, video, webcasting, website development We’re a London-based design consultancy that listed and private clients of all sizes and sectors depend on to solve their communication challenges. » Serving over 2,300 listed companies worldwide fourthquarter.co.uk +44 (0)20 7234 8960
EQS Group is a leading international provider of REPORTING BRANDS MARKETING WEBSITES digital investor relations solutions «
EQS Group Ltd • London: [email protected] FRIEND STUDIO – www.friendstudio.com – annual reports, Tel. +44 (0) 20 3141 3940 • www.eqs.co.uk CSR/sustainability, investor communications, investor presentations, publications, video, website development
EURONEXT – www.euronext.com – CRM databases, investor FTI CONSULTING – www.fticonsulting.co.uk – investor relations, communications, investor relations, IR for small caps, mobile public relations technology, shareholder targeting, webcasting HEARTWOOD PARTNERS – www.heartwoodpartners.com – investor &RQWDFW $UQDXG5RELQ communications, investor presentations, investor relations, investor DURELQ#HXURQH[WFRP roadshows, IR for small caps, shareholder research, shareholder targeting, website development (XURQH[W&RUSRUDWH6HUYLFHVDLPVWRKHOSFRPSDQLHVPDNHWKHPRVW HIIHFWLYHXVHRIFDSLWDOPDUNHWVZLWKVROXWLRQVDQGDGYLVRU\UDQJLQJIURP Specialist IR advisory JRYHUQDQFHPDQDJHPHQWWR,5PDQDJHPHQWSUHDQGSRVW,32DGYLVRU\ ZHEFDVWLQJVROXWLRQVDQGPDUNHWLQWHOOLJHQFH • Investor communication advisory FRUSRUDWHVHUYLFHVHXURQH[WFRP • IPO and M&A messaging • IR website best practice • Perception studies, PCB roadshows EXANE BNP PARIBAS – www.exane.com – European equities broker Heartwood Partners [email protected]
IR SOCIETY 47 DIRECTORY (continued) INFORMED
INGAGE – www.ingage.com – CRM databases, investor roadshows, LATCHMOOR SEARCH – www.latchmoorsearch.co.uk – executive mobile technology search
Specialists in Executive Search for Corporate Access Investor Relations and Corporate Communications. & IR Software Contact: Delivering the right talent through Jennifer Bargrove our responsive and innovative [email protected] approach, informed by decades of Direct. Unconflicted. Built for mobility. www.latchmoorsearch.co.uk dedicated expertise.
INSTINCTIF PARTNERS – www.instinctif.com – annual reports, LIBERUM – www.liberum.com – corporate broking CSR/sustainability, debt IR, investor communications, investor presentations, opinion research, proxy and corporate support, investor roadshows, public relations, share register analysis, shareholder research, shareholder targeting, website development, UK regulatory disclosure
INVESTIS – www.investis.com – annual reports, investor relations, IR for small caps, webcasting, website development
LUMINOUS – www.luminous.co.uk – annual reports, CSR/sustainability, investor presentations, website development
Making the message resonate Luminous deliver outstanding corporate reporting for some of the most respected organisations in Europe. We combine strategic expertise with creative innovation to produce efective, fresh and INVESTOR INSIGHT – www.investorinsight.co.uk – board advisory, meaningful reporting solutions. CRM databases, investor relations, IR for small caps, opinion research, Stephen Butler [email protected] share register analysis Corporate Reporting Director 020 7101 1677
LYONSBENNETT – www.lyonsbennett.com – annual reports, CSR/sustainability, investor presentations, website development
Lyonsbennett is an award winning corporate communications agency.
We consistently deliver enviable creative that communicates our clients’ messages Neil Duncanson cost effectively and in an environment Business Development Director IRFACTORY – www.irfactory.co.uk – mobile technology, website where service is key. T: +44 (0)1273 608 589 development E: [email protected] www.lyonsbennett.com
A global, flexible and powerful MAITLAND – www.maitland.co.uk – investor relations solution for your IR communication
MAKIN SON COWELL – w ww.makinson-cowell.com – investor relations IR Websites • Quotes & Charts • Apps • Financial Data • Smart Reports MEETYL EUROPE – www.meetyl.com – investor relations, roadshows, +44 20 3445 5045 • [email protected] • www.irfactory.co.uk small caps, shareholder targeting
MERCHANTCANTOS – www.merchantcantos.com – annual reports, IR MAGAZINE – www.irmagazine.com – publications internet services, website development
ISSUER DIRECT – www.irmagazine.com – shareholder targeting Contact: Richard Carpenter [email protected] +44 (0) 20 7396 3581 MerchantCantos is one of Europe’s leading creative communications companies. We work across print, online, video and mobile. Our areas of expertise include: Branding, Corporate Advertising, Corporate Communications, Corporate Reporting, Corporate Responsibility, Digital, Employee Engagement, Investor Communications, Video Production and Webcasting.
MHP – www.mhpc.com – investor relations, public relations
LANGSFORD CORPORATE DESIGN – www.langsford.co.uk – annual reports Maximise your impact by listing in this Directory. To appear here, call 01285 831789 or email John Thistlethwaite at [email protected]
48 IR SOCIETY AUTUMN 2017 DIRECTORY
MSLGROUP – www.mslgroup.co.uk – annual reports, QUANTIFIRE – www.quantifire.co.uk – opinion research, shareholder CSR/sustainability, public relations, website developent research
MSLGROUP is a communications agency with digital, insight and creativity at its heart. Our skills range from reputation IR feedback is changing. You can management and content marketing to annual reports and now reliably measure, analyse and sustainability communications. With 25 years’ experience ket perception by crafting reports and websites, we work with brands such as trend mar different stakeholder groups – and Sainsbury’s, Experian, SABMiller, BT and Standard Chartered. E: [email protected] the impact that your IR programme Be Interested. &RQWDFW [email protected] T: +44 (0) 20 7060 5470 has on this. Be Interesting. Victoria Sugg +44 (0)20 3219 8838 www.quantifire.co.uk Contact us for a trial. %H,QƪXHQWLDO Business Development Director mslgroup.co.uk
NASDAQ CORPORATE SOLUTIONS – business.nasdaq.com/intel – RD:IR – www.rdir.com – CRM databases, investor relations, IR for CRM databases, internet services, investor relations, IR for small caps, small caps, investor roadshows, opinion research, proxy and corporate investor roadshows, opinion research, public relations, shareholder support, shareholder research, shareholder targeting research, shareholder targeting, webcasting, website development !"#$%"#$&#'&(")"&("&*#+,-.$,#/&0"1*-%# Contact: Abishek Singh 2",$*'-&1# 3-&14,*$&35# -66"%'&+# $# 7'("# Corporate Solutions IR Business Development Direct: +44 7769 2828 60 %$&+"# -6# /28%",$*"(# $&$,51'19# %"1"$%3:# [email protected] ;# $(0'1-%5# 1"%0'3"1# *-# <-%"# *:$&# =>># ?@# ;# '&*"%&$*'-&$,# )4.,'3# 3-<)$&'"1 Nasdaq Corporate Solutions offers the most comprehensive suite of content, analytics, advisory services and communications tools to help you maximize the !"#$%&$'()*''$'+,,'-.'/,0-'.1..''2'324&"5267897:&"5''3'7897:&"5 value of your IR program. To learn more visit business.nasdaq.com/intel RIVEL RESEARCH GROUP – www.rivel.com – shareholder research, ORIENT CAPITAL – www.orientcap.com – CRM databases, debt IR, opini on researc h investor relations, mobile technology, shareholder research, shareholder targeting, webcasting Rivel Research Group is a research firm devoted to gathering, analysing and interpreting investment community feedback. We specialise in delivering Orient Capital is a global leader in share ownership actionable insight based on in-depth analysis, equity & debt market intelligence, investor Contact Claire Lavery measurements of the investment community. communication and shareholder management ● ● ● technology for listed companies. +44 (0) 20 3356 2791 [email protected] www.rivel.com Rivel Research Group, 4th Floor, Rex House, 4-12 Regent Street, London SW1Y 4PE London +44 20 77 76 75 74 orientcap.com
Part of Link Group | Corporate Markets TAURUS LONDON – www.tauruslondon.com – board advisory, executive search, investor communications, investor relations PANMURE GORDON – www.panmure.com – corporate broking
PR NEWSWIRE – www.prnewswire.co.uk – investor communications, public relations, UK regulatory disclosure, webcasting, website development
PR Newswire is the leading global provider of +44 (0) 20 7959 7000 | [email protected] PR and corporate communications tools that 16 Kingly Street | Carnaby | London | W1B 5PT enable clients to distribute news and rich content across traditional, digital and social media channels in real time with full actionable reporting TAYLOR BENNETT – www.taylorbennett.com – executive search and monitoring. www.prnewswire.co.uk Contact: Alexandre Bykov • [email protected] TAYLOR RAFFERTY – www.taylor-rafferty.com – investor relations +44 (0) 20 7454 5104 • Follow us @meetthemedia @prneurope
Q4 INC – www.q4inc.com – CRM databases, investor communications, IR for small caps, mobile technology, news 35 providers, share register analysis, shareholder research, shareholder targeting, webcasting, website development Brian Rafferty +1 212 889 4350 [email protected] Dana Diver Bringing the world’s top [email protected] IR solutions to the UK. VALOR IR CONSULTING – www.vmagroup.com – executive search IR Desktop Websites Webcasting Intelligence VA LOR VALOR provides personal coaching, written www.q4inc.com [email protected] adaptations and crisis response advice to I R C O N S U L T I N G corporations looking for better relationships with their institutional investors. Jonathan L. Passmore. Valor IR Consulting, First-class communications promote Fairfield, CT 06824, USA. understanding, trust and resilience. [email protected] • +1-203-258-2880 • www.valorinvestmentsllc.com Find your IR service provider here
IR SOCIETY 49 DIRECTORY (continued)
VMA – www.vmagroup.com – executive search
WORKCAST – www.workcast.co.uk – internet services, investor The Investor Relations Society relations, webcasting, website development 5th Floor, 30 Coleman Street, London, EC2R 5AL The WorkCast Corporation is Europe’s largest provider of webinar, webcasting and virtual event solutions serving Tel: 020 7379 1763 over 150 global organisations including the IR Society www.irsociety.org.uk and IR magazine. WorkCast’s award-winning webcasting platform, WebCast Contact: Manager and Services, are used for many enterprise-wide THE BOARD Mike Bowman, Sales Manager applications such as investor and stakeholder relations, Tel: +44 (0)844 870 4912 lead generation, employee communications, training & [email protected] product launches and user conferences. David Lloyd-Seed (chair) Telefonica UK (O2) Nominations committee chair WORLD TELEVISION – www.world-television.com – investor [email protected] relations, video, webcasting David Walker (deputy chair) Hays World Television is a leader in Corporate affairs committee chair strategic video communications. [email protected] We are producers of award- winning programmes, webcasting Contact: James Eves (company secretary) Rob Burns, Senior Production Consultant specialists and experts in Deutsche Bank +44 (0)20 7243 7352 delivering video online. [email protected] [email protected] www.world-television.com Emma Burdett Maitland ZEBRA CORPORATE COMMUNICATIONS – www.zebracc.co.uk – Policy committee chair Annual reports, internet services, investor communications, investor [email protected] relations, website development Fay Dodds (treasurer) Independent Finance committee chair [email protected] Digital Reporting: John Gollifer (general manager) The Investor Relations Society The Next Big Thing for Your Business [email protected] Tel: +44 (0) 20 3824 2351 www.zebracc.co.uk Ross Hawley Rolls-Royce Education committee chair [email protected] Charles King Worldpay [email protected] The best jobs can be found Claire Lavery Rivel Research Group [email protected] on the IR Society’s Alison Owers Orient Capital Membership committee chair [email protected] Job Zone Helen Parris G4S [email protected] Sallie Pilot Whether you are looking for an exciting new role Black Sun Best practice committee chair or have a vacancy for a world-class candidate – [email protected] the Job Zone targets the best-qualified group of Douglas Radcliffe Lloyds Banking Group IR professionals in the UK and Europe. [email protected]
Cas Sydorowitz Georgeson See the jobs at irsociety.org.uk/careers/job-zone Events committee chair [email protected] Fraser Thorne For more information about posting a role, email Edison Investment Research [email protected] or call 01285 831 789. [email protected]
50 IR SOCIETY “Te world’s best source of advice for improving your online investor communications”
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You don’t thrive for 230 years by standing still.
As one of the oldest, continuously operating financial institutions in the world, BNY Mellon has endured and prospered through every economic turn and market move since our founding over 230 years ago. Today, BNY Mellon remains strong and innovative, providing investment management and investment services that help our clients to invest, conduct business and transact with assurance in markets all over the world. To learn more, visit bnymellon.com.
© 2017 The Bank of New York Mellon Corporation. All rights reserved. BNY Mellon is the corporate brand for The Bank of New York Mellon Corporation. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority. The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Products and services referred to herein are provided by The Bank of New York Mellon Corporation and its subsidiaries. Content is provided for informational purposes only and is not intended to provide authoritative financial, legal, regulatory or other professional advice.