Respondents hold mixed views about return to in-person events this year
There is considerable uncertainty about a return to in-person events in the short term. Just under three in 10 IROs positively expect a return to in-person events in 2021. A quarter of IROs definitively state that they do not expect to return to in-person events this year while 46 percent are not sure what will happen.
There is little variation in this according to region. North American IROs tend to be more negative about a return to in-person events this year, with a quarter saying they expect a return and almost a third stating that they definitely don’t.
IROs at larger companies have higher expectation of a quicker return to in-person events, with 41 percent of mega-cap IROs expecting a return this year. IROs at small-cap companies have the highest level of uncertainty about whether or not there will be a return to in-person events in 2021.
The low level of expectation for a return to in-person events in the near future is reflected in how IROs plan to allocate resources for such events in the coming year: most IROs are making no plans for in-person events in 2021.
There is hope more than expectation that some in-person interaction with investors will be possible in the second half of the year, most likely in Q4 2021. These interactions, were they to happen, would most likely tend toward more local, informal meetings with familiar investors rather than organizing or attending large-scale events. There is little consideration regarding the resumption of any extensive travel plans in 2021.
Much of the IR resources for virtual investor events are already in place, with companies having developed their virtual programs over the course of 2020, and most additional resources are expected to go on improved technology to enhance the virtual experience. Such investment is in accordance with the view that virtual events are here to stay and will permanently form part of the investor relations calendar.
Virtual event resources primarily focus on investor conferences and roadshows, in that order. Some IROs refer to a change in targeting as the virtual format of these events allows for a different approach. Several mention investor days and the challenge in planning what will, for many, be their first in a virtual format.
We asked investors where they think companies should be prioritizing their resources for in-person events. While a significant number say companies shouldn’t be prioritizing in-person events at all at the moment, a notably high number mention site visits. Roadshows and investor days are also mentioned to a lesser degree, but there are very few mentions of in-person investor conferences.
These views are consistent with findings elsewhere in this report. Investor conferences are the event type most readily converted to a virtual format, with minimum loss in value. But site visits are a resource-heavy and less frequent event with high appreciation levels from investors. The unique nature of site visits makes them the least transferable to a virtual format and the ones that gain most value from being hosted in-person.
When investors are asked how companies should prioritize their resources for virtual events, they focus much more on execution than specific types of event. The vast majority of investor comments mention either focusing on content, such as reshaping presentations to better fit the virtual format, or investing in technology to improve the virtual experience.
When investors comment on specific event types for the virtual format, investor conferences are the event most frequently mentioned. Investor days and roadshows are mentioned equally, while only one respondent says companies should focus their resources on virtual site visits.
It is clear the Covid-19 pandemic has had an overwhelming impact on investor events in the short term. What is also clear from the findings in this report is that this will lead to a long-term change in the style, content and format of future investor events.
When investors are asked to rate their personal experience, they always prefer events to be in-person rather than virtual – but the degree to which this is the case is not uniform across all events. The difference in the ratings for in-person and virtual investor conferences is much smaller than for other events.
Investor conferences were the quickest event to make the transition to virtual and are now a regular feature of the IR calendar. There is little value in prioritizing resources for in-person over virtual investor conferences.
Moreover, IROs remark that both virtual investor conferences and roadshows provide new opportunities over the in-person format. Virtual investor conferences appear to be better attended while virtual roadshows can access investors in locations IR teams might not have prioritized going to in person.
The opportunity for virtual investor conferences and roadshows to be thematic rather than geographic means the nature and content of virtual and in-person events may diverge in future, as may the reasons to participate in them.
In-person site visits are the event experience most highly rated by investors. Investor days have the largest difference in rating between in-person and virtual formats. Both these event types are resource-heavy and less frequently held than conferences and roadshows, so it makes sense to focus on in-person formats for these. Furthermore, mention is made by investors of incorporating site visits and investor days into a single event.
Virtual events are now part of the investor event landscape and will continue to evolve. This, in turn, will affect the development of in-person events. Virtual and in-person events are likely to diverge in nature as they provide differing opportunities.
New resource demands and expectations may lead to the creation of new event styles. Any future report on this subject may no longer be referring to virtual and in-person investor conferences, investor days, site visits and roadshows as a means of categorizing investor events.
