Corporate Access Through COVID-19 and Beyond

U.S. investors report how they want to engage with international issuers

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Corporate Access Through COVID-19 and Beyond

U.S. investors report how they want to engage with international issuers

May 10, 2021

COVID-19 had a deep impact on Investor Relations practices for corporate issuers located outside the U.S. In interviews with 38 U.S.-based portfolio managers representing nearly $610 billion in Equity Assets Under Management (EAUM), we uncover how well these changes worked for investors and which ones may continue post-pandemic. 

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Our research, conducted in conjunction with Greenwich Associates, highlights:

  • Investors’ requirements for management access before initiating an investment
  • Satisfaction with current levels of access
  • Environmental, social and governance (ESG) considerations
  • Availability of depositary receipts and its impact on investors’ decisions

Key Findings

  • Views were mixed on whether COVID-19 changes would be permanent. 57% of respondents thought new virtual processes could persist due to convenience and cost factors.
  • Nearly all (97%) investors surveyed prefer some type of access to management before initiating an investment.
  • 82% of all respondents noted the increasing importance of ESG considerations during due diligence. That rises to 100% with firms over $25 billion in EAUM.
  • 75% of firms with $0.5-$5 billion in EAUM and 55% of firms with $5-$25 billion in EAUM said the availability of depositary receipts improved the likelihood of investing in international issuers.
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Key actions for issuers’ investor relations teams:

  • Embrace opportunities to engage directly with U.S. investors and allocate senior management’s time effectively.
  • Take advantage of virtual capabilities to improve outreach with investors in less readily accessible geographies.
  • Improve targeting to low- and moderate-turnover investors as well as asset managers with under $25 billion in EAUM. These firms have capital to deploy, value long-term engagement, see themselves as underserved by existing channels, or may seek to leverage depositary receipts in their process.
  • Ensure clear messaging around ESG issues and understand investor expectations.

Our Global Investor Relations Advisory team looks forward to discussing the insights and implications with our clients.

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