Readers offer their opinions
Consultants vs brokers
Your recent article on roadshows in the February 2004 issue (The show must go on) raised some important points, including the fact that fund manager feedback is usually of a higher quality from independent consultants.
I believe attributable feedback is becoming more and more important in the eyes of the Financial Services Authority (FSA), particularly in light of section D.1 of the UK's new Combined Code. This is increasingly influencing the choice for companies between consultant or broker when conducting perception work and roadshows.
As an IR consultancy specializing in cross-border IR, I was disappointed not to see our company listed in your directory. CapitalQuest provides companies with intelligence and feedback on the buy side based on independent research carried out by our staff of former fund managers and investment bankers. In the event you run this directory again, can I ask you to include us?
Tierney Maher,
Managing director, CapitalQuest
Editor's response:
Each month we have a regular feature survey that tackles a subject we think will interest IROs worldwide. Following the feature is a regular directory of service providers specializing in the feature subject. We started including directories with these feature surveys back in June last year, and we've had positive feedback from readers who find the combination useful.
It is impossible, however, for us to list every service provider that specializes in the areas covered, so we appreciate hearing from those who are overlooked in the directory's basic listings. Our advertising manager, Harvey Hudes (harvey@irmag.com), is the person to contact if you'd like your company to be included as a basic or enhanced listing in future directories.
We have noted your request and appreciate your letter. The objectivity of brokers is increasingly under attack and this is providing lots of opportunities for independent roadshow consultants to approach IROs who want to target European investors. At the same time, many companies still rely on brokers to make introductions to the buy side because that has been the standard for many years. We will continue to watch this issue - stay tuned for an article on virtual roadshows in our June issue.
How are US winners chosen?
My company's IR has really improved this year - we've actually picked up coverage from half a dozen sell-side analysts in the last twelve months. So how do you choose the analysts and investors polled for the IR Magazine Awards? I just want to make sure we're considered for the US awards next time.
Name and company withheld
Editor's response:
This question comes up increasingly often as the scope of our worldwide awards' program increases. The answer is that for the last ten years we have used an objective methodology to select the best IR around the world.
We commission independent research companies to conduct a survey of buy-side portfolio managers and analysts, sell-side analysts and retail investors to choose winners in a variety of award categories - in the US the firm we use is New York-based Erdos & Morgan. It uses contacts from the investment community provided by Barron's, Thomson Financial and WILink, so this study is based on a truly broad sample of individuals who either cover or are invested in US equities.
In the US this year we had a total of 3,514 respondents of which 2,150 were buy-side portfolio managers and analysts, and approximately 700 were sell-side analysts. The remaining 664 respondents came from the retail side.
Editor's note:
For more details on how our award winners are chosen, please see last June's cover story Who do you trust?. Also, next month we take an in-depth look at our US winners from this year including Cisco, Guidant and Applebee's International. This feature will also highlight some of the findings from our US research on the current state of IR in the US.
We welcome your letters but must point out they may be edited for clarity and length. All letters should include your full name, title, company name, address and telephone number if you want to be credited. We also reserve the right to use letters in all of our print and electronic editions.
Please send correspondence to:
Adrienne Baker, editor-in-chief, IR magazine
65 Broadway, Suite 1801, New York, NY 10006
E-mail: letterstotheeditor@irmag.com
Fax: +1 212 425 7589