Getting investors, analysts, and corporates to connect more is no easy task. There are many people to talk to and not enough time. As part of our mission, Smartkarma is constantly trying to enable and improve these conversations. And we identified one area that’s particularly problematic.
A study by Smartkarma C-Suite looked at a sample of around 26,000 companies to determine how easy it is to access their Investor Relations departments. We found that 73% of the companies sampled do not provide IR contact information in a straightforward, easy-to-use format.
Ease of access
There’s a few reasons why it’s important for Investor Relations to be accessible:
Contacting IR departments is one of the primary procedures investors follow when confirming an investment decision.
Analysts need access to IR departments and management when they write about a company. Without such access, they might avoid writing about it altogether.
Obscure IR contact details can potentially limit investment and connection opportunities for companies
In a post-MiFID II world, there are more independent analysts writing about companies and investors can no longer rely on banks and brokers to reach IR departments.
In short: Obscure IR contact details can potentially limit opportunities for companies to attract investment, appear in widely-read and cited financial research, and establish valuable connections.
“I will not write about a company in any depth unless I have had direct contact with the management,” says Independent Research Analyst Angus Mackintosh, who publishes on Smartkarma. In his experience, writing to generic IR department email addresses is not really effective so he tries to rely more on industry contacts to establish a channel of communication.
Shifts in the market as a result of new regulations, like MiFID II in Europe, highlight the need for more productive interactions between investors, analysts, and corporates. Banks and brokerages used to leverage their connections and networks to enable those conversations.
Now banks and brokerages are being supplanted as more independent analysts and smaller research firms are popping up to claim their own niche in the market. But the smaller players usually can’t bring the banks’ resources to bear.
How Smartkarma can help
The first step to any solution is identifying the problem. Our study into the ease of access and availability of IR contact details showed us that there is a real need for the buy-side and analysts to be able to reach IR and management.
This is an extension of the Smartkarma Investment Research platform: To start with, we are curating a Global Investor Relations Directory where Corporate Investor Relations departments can add their contact details. This can lead further opportunities as institutional investors and analysts reach such companies more effectively.
Investor Relations departments and professionals can enter their contact details by clicking the button below:
Learn more by downloading our White Paper, Making IR Contact Details Easier to Find, below: