Rebooting your investment proposition
Companies face an unprecedented challenge in relation to marketing their investment proposition to investors. A combination of the size of investor portfolios (122 stocks on average), declining sell-side coverage (down c.15% in the last five years and still falling) and the over granularity of reporting, are the ingredients for a perfect storm where failure to attract interest could result in a ‘stranded narrative’. For companies, a stranded narrative has the potential to prove a silent killer with the implication being content that is locked-in, devaluing strategy and disrupting the link between companies and sources of deep, long-term capital.
Storms while always unpleasant are generally short lived, and although MiFID II and the new era for financial markets that this hails will bight in the short-term, the context provides the opportunity to revaluate how your company is communicating its proposition and the different trajectories and journeys into the corporate narrative audiences take. Indeed, failure to do so doesn’t take advantage of the significant resources and easily available content within your business and the increasingly holistic approach investors take to education and broader corporate disclosure.
Solutions and Best Practice
The good news is that the solution is not as difficult or time consuming as it seems and helpfully the IR Society’s Best Practice Awards, specifically the grand prix award for ‘Best overall communication of company investment proposition’, provides a useful framework for enhancing your narrative - increasing its clarity, consistency and memorability. In short: the criteria references the requirement for content that is clear and concise and considers the investment proposition in the context of the financial position, strategy, risks and available market opportunities as well as how this is conveyed consistently across channels and collateral. From a communication perspective the focus is on innovation and the number of channels used, including websites, moving image and supporting materials and data such as up-to-date factsheets and Excel downloads.
A Practical Case Study: The Adecco Group
A look at a practical example: our work with The Adecco Group on their Capital Markets Day serves as a model approach. Working with the team we created a campaign-able multi-channel solution that defined the central theme and its creative expression, introducing thematic messaging leveraging print and digital. The messaging and content from the event has evolved to become a touchstone for explain key parts of the strategy in an accessible way and has evolved to be a core component for the Group’s stakeholder communications.
By closing the disconnect on how your investment proposition is communicated across channels and leveraging content already produced, you can maximise the impact of messaging, reducing resource strain to the benefit of IR and the clarity and perception of your company’s narrative.
For more information on the IR Society’s awards criteria visit their website
For more information on how we can help you, get in touch.