This article, which discusses the value of reverse roadshows, field trips and investor days, was sponsored by HSBC
It’s summer in the northern hemisphere and, for many people, that means a well-earned break from the stress of organizing roadshows and investor conferences.
The first half of this year has been particularly challenging, especially the second quarter, when a number of macro and sovereign issues gained a stranglehold on the markets. This has probably translated into a greater need for interaction with investors.
So I hope this column finds you basking in the sun, under a palm tree, with a refreshing drink in hand. While you drift in and out of your holiday thoughts, however, it may be worth spending some time thinking about other ways in which to connect with investors in the second half of 2011 and into 2012.
Reverse roadshows: for many investors, physical distance and global time zones separate them from investment opportunities their mandates would otherwise allow, be it cross-country sector responsibilities or regional/global responsibilities. This is particularly evident in emerging markets, where the landscape and environment is less well known and hence more critical when it comes to evaluating companies.
If you are based in one of these regions, you’re probably familiar with investors coming to see you. This is almost always a good thing: if you’re willing to get on a plane to travel to see a company, you’re probably committed to investing somewhere in that company’s sector or region. As such, I would strongly recommend meeting with almost all investors that come to see you. Rely on the introducing broker to guide you on the investor’s size and knowledge of your company, and use your own judgment on whether a C-level executive meeting is warranted.
Field trips: if you’re in an industry where your plant/facilities/stores are important to your investment story, it’s probably worth setting up group site visits on a regular and ongoing basis. If you’re not doing this already, it’s a very effective way to group many clients together and give them an opportunity to see facilities first hand. Brokers can help you set up tours if you require assistance.
Investor days: along the same lines as field trips, these can also be good for mid-cap firms, especially those that have undergone changes in strategy or recently completed a major transaction. They also offer the opportunity to introduce managers of divisions to investors in a controlled environment. Again, brokers can help.
Taking these options on board will hopefully equate to a little less travel for you and thus allow more time holding on to your summer thoughts (or drinks).
Alex Lupis is director and head of corporate access for Asia-Pacific at HSBC
This article appeared in the August print edition of IR magazine.
