Investor Relations - A Practical Guide - Investis

Sentiment studies
Corporate governance as defined by the
Combined Code demands that “there should be a
dialogue with shareholders based on the mutual
understanding of objectives. The board as a whole
has responsibility for ensuring that a satisfactory
dialogue with shareholders takes place.” It is the
Chairman’s responsibility to ensure the entire
Board is informed of shareholder sentiment. Many
companies undertake sentiment surveys to
ascertain cognition and perception of their stock.
IR consultancies can support quoted companies by
interviewing a cross section of overweight,
underweight and absentee investors to gauge
shareholder sentiment and offer strategic outputs.
Investor communications materials
An IR consultancy can also assist quoted
companies with their written communication
materials such as company announcements,
annual reports and website content. Quoted
companies must operate within a strict legislative
and regulatory framework which is increasingly
complex and constantly changing. IR consultancies
will advise management teams on the timing,
content and distribution channels for such material.
The market is also sensitive to subtle nuances. An
IR consultancy will be able to advise on how the
market will react to announcements and how quoted
companies position themselves most effectively.
In-house training and support
Although most FTSE 100 companies employ
dedicated investor relations professionals, smaller
companies may not be able to justify having this
function in-house. In this instance, investor
relations responsibilities may be allocated to a
finance or company secretariat role. Even with a
dedicated Investor Relations Officer or team in
place, there can sometimes be periods when more
resource is required. IR consultancies can help
quoted companies in these situations by providing:
• Specific advice on a given corporate action
• All round support on a retained basis
• Training and support to those who may find
themselves with investor relations responsibilities
with no prior experience
The Investor Relations Team 41