Monitor markets and investor feedback and maximize the value of virtual
When developing an IR strategy, IROs need to plan ahead, but also be mindful of the potential need to pivot or refocus as a result of changing landscapes. According to Campbell Soup Company’s Rebecca Gardy, robust preparation and balancing proactive and reactive activities and engagement through various channels can help strike the right balance.
‘Monitor market trends, news, social channels and other sources to assess and/or anticipate the potential impact on your company’s messaging,’ she advises. ‘This also requires strong partnership with the corporate communications team. With any strategy, it’s important to factor in the ability to adjust messaging and tactics based on feedback from the investor community, and to respond to issues such as changes in competitive dynamics and the macro climate.
‘Having a well-documented crisis communication plan that is fully vetted cross-functionally – for example, with your communications and legal departments – will also allow IROs to respond effectively and efficiently to investor concerns.’
For novobanco’s Maria Fontes, changes within the banking industry have highlighted the need to remain adaptable. ‘The challenge has been to keep up with the pace at which market sentiment changes, regulatory updates are introduced and different topics become crucial for effective communication,’ she says.
‘Flexibility and swift responses have been key to fostering long-lasting relationships with our investors. We define our IR calendar on a quarterly basis, giving us the flexibility to adjust investor targeting according to varying market sentiment, while keeping in mind the goals we want to achieve.’
Flexibility and swift responses have been key to fostering long-lasting relationships with our investors
Varied engagement‘The flexible aspects of our strategy center around how we engage with the investment community,’ says Amir Rozwadowski of A&T. ‘We take a returns-focused approach to this activity, focusing on what matters most and maximizing the potential return for the chief executive's and CFO’s participation. This places a priority on developing and executing an investor-targeting approach to maximize our return on investment.
‘That said, a lot can change in any given year. By relentlessly monitoring financial markets for key patterns, studying emerging industry trends and developing peer benchmarks and competitive analysis, we gather insights that help us navigate change and adjust course if needed. This is also why it’s important to consistently revisit an IR calendar throughout the year to ensure it’s still helping you achieve your primary goals.’
It’s important to remember that investor communication is a two-way street
The effectiveness of insight-gathering as a strategy tool is echoed by Barbara Noverini of Portillo’s, who says IROs can stay responsive by planning a robust investor engagement calendar outside of the earnings cycle.
‘It’s helpful to have year-round opportunities to disseminate your investment thesis, but it’s important to remember that investor communication is a two-way street,’ she says. ‘Inevitably, you will collect investor sentiment at events such as conferences and non-deal roadshows and you can then use these observations to continually hone the narrative that supports your investment thesis.’
Post-pandemic considerationsAs the world continues to recover from the disruption caused by Covid-19, many after-effects linger. For IR teams, the impact mostly centers on events and interaction, with the shift toward virtual or hybrid offering potential benefits within IR strategies.
‘The wake of the pandemic has seen no material difference in terms of our IR calendar itself, but there is more flexibility to meet investors in virtual format,’ says Fontes. ‘In-person meetings continue to make the difference in terms of engagement and attention, but I believe the advantage is in the mix of both in-person and virtual meetings, keeping investors updated and their concerns clarified.’
Gardy also recognizes the value of virtual. ‘While not always our preferred primary method of communication, virtual engagement does allow us to extend our reach and gives us the flexibility to engage with investors without traveling,’ she comments.
In Rozwadowski’s experience, the pandemic helped the AT&T IR team to become more efficient in its engagement approach and make the best use of its time and resources. ‘Many of the practices we established are still in place today,’ he explains. ‘While we see a lot of value in face-to-face meetings and have returned to hosting in-person meetings, we still tap into more virtual options than we did prior to the pandemic.’
We still tap into more virtual options than we did prior to the pandemic
