SHAREHOLDER IDENTIFICATION

Shareholder Identification – Leveraging and Targeting 

Shareholder Identification is essential to every investor relations program. Having good visibility and understanding of your company’s ownership is not only an important responsibility of every investor relations officer (IRO), it can help avoid activist investors and tailor communications accordingly. Included are some tips to help you get to know your shareholders, understand their sentiment, and leverage technology to better comprehend your market position and inform your corporate strategy. 

Broaden Scope in a Virtual Environment 

If the last two years have taught us anything, it is that the future is uncertain. However, one thing that will (probably) remain consistent is that virtual meetings and events are here to stay in some capacity and your investor relations programs need to reflect that. It’s easier than ever to expand and attract your investor pool beyond what was possible before everything went virtual. This serves as a great opportunity to embrace broad investor participation as part of your wider shareholder engagement strategy. We are also seeing an increase in the number of investors and companies who have a purpose-built webcast room which adds to the quality and professionalism of the broadcast. 

Solicit Feedback and Collect Data 

Virtual events and interactions make it easier than ever to collect feedback from investors and IROs should provide meaningful engagement between investors and their board to foster this. Feedback is important because it will tell you something, even if it’s just how you’re perceived by the investment community. Companies can use technology to foster meaningful open dialogue with shareholders via online tools (or even in the chat section of the virtual event) so they can provide feedback. Answering questions like: What did they think of the presentation? Do they have any constructive feedback? Do they have any points that could be passed on to management? Feedback is essential and should be treated like gold.  

IR Tools 

We have been forced to adopt digital tools and it would be an opportunity wasted if they’re not synthesized and applied to render useful analytics. Using qualitative and quantitative data – market intelligence services along with investor ownership analysis (investor style, holdings, and past behaviours) combined with the collected investor feedback – provides a holistic view of investor sentiment and understanding the reasons behind equity and shareholder movements using company, sector and market data. This can be used to formulate a strategic plan and timeline.  

Some of our favourites:  

The Most Powerful Investor Relations Software - Irwin (getirwin.com) 

TMX | Market Insights - TMX Insights - TMX Insights (tmxinfoservices.com) 

Changing Investor preference 

Recently, we have seen a surge in ethically responsible investing as investors use their wallet to align with their world views. ESG is not only a priority for many companies - some firms are hiring dedicated ESG officers to coordinate with the investment community. It’s important to note that there is no ‘one size fits all’ in ESG investing – it can mean different things to different investors and individuals who often have a specific idea of what ESG means to them. Collecting feedback from ESG-focused investors is important because ESG is so broad – IROs can help identify what matters most to their cohort. Numerous companies are pivoting towards ESG to improve their multiples (often in tandem with pivots in their industry positioning).  

Outside of the traditional, and somewhat limiting, top holder reports availability with a subscription to market intelligence platforms such as Irwin and Bloomberg, your NOBO and registered holder lists should become vital to analyzing and focusing your IR outreach efforts. A good handle of your company’s ownership will position you as an IR pro to your management team, board and the shareholder “expert” who can help shape strategy by becoming a critical resource for shareholder sentiment and feedback.