Forty-five percent of IROs want a more global investor spread, shows BNY Mellon study
The international expansion of shareholder bases has become a top priority for nearly half of public companies, according to BNY Mellon’s latest annual investor relations survey.
About 45 percent of companies responding to the survey say international diversification of their shareholder base is a top priority for the coming 12 months, compared with only 17 percent in a 2010 survey. Still, maintaining relations with existing investors is the top goal, cited by 54 percent of companies.
The drive for increased international shareholder ownership is most notable in western Europe, where 59 percent of companies report it as their top goal for 2014, reports the survey. Emerging Asia is next at 54 percent, followed by the Middle East at 53 percent.
Only 39 percent of North American investors say the same, according to the survey of 700 respondents in 63 countries.
‘The access to and retention of investor capital has been the major challenge of the last year, with companies developing a heightened appreciation of the importance of a well-established dialogue with the investor community,’ the study authors say.
‘The priority for 2014 for the majority of IROs is to support and maintain relationships with investors, both existing and prospective.’
The survey shows that IR departments are increasingly engaging with investors on ESG issues, with 74 percent having done so in the last 12 months. ESG matters were discussed with investors by 85 percent of IROs in North America, 83 percent in western Europe and 56 percent in developed Asian countries.
The IROs surveyed also report an increasing proportion of active investors for the second year in a row. In the latest survey, 36 percent of respondents say active investors are increasing as a percentage of their shareholder base, compared with 26 percent in 2012.
