Insights Into North American Investors' Views of Corporate Access

Insights Into North American Investors' Views of Corporate Access

September 2014

A A A

North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms.

According to a new study released by BNY Mellon, North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms.

The survey, Insights into North American Investors’ Views of Corporate Access, was conducted by Ipreo, an independent IR market intelligence and analytics firm, and BNY Mellon. It examined how the North American investment community perceives its current access to companies outside the U.S. and Canada. Forty investment firms with more than $3.1 trillion in combined equity assets under management took part in the study, with an average portfolio allocation to non-North American equities of 31.5%.

Insights into North American Investors' Views of Corporate Access

Source: Ipreo 2014

Unlocking the Increasing Value of the North American Investor for Non-US Issuers

From 2012 to 2014, total equity value invested outside of North America grew by more than 30%. Growing assets and a growing focus on diversification, however, has placed new strains on the management teams of non-U.S. issuers, as they try to meet the demands of the North American investor community. To meet these demands, non-U.S. issuers must refine their targeting and corporate access strategy in order to maximize management time, energy, and effectiveness. This study attempts to frame both the challenge and the opportunity,

Trends in the North American Investor Landscape

North American Investors’ Views of Corporate Access

The Importance of Corporate Access

A majority of study respondents state that a lack of corporate access eliminates a company from their potential investment universes, explaining that face-to-face meetings are a necessary component of their due diligence process.

North American investors say they need more and better access to non-North American companies to gain greater confidence or initiate a position in international firms.

BNY Mellon Depositary Receipts

For the 60% of investors who absolutely require them, in person meetings are important in judging management’s knowledge and proficiency; building trust and rapport with the team; and enabling investors to better understand the company’s strategy, regional market dynamics, and competitive threats. Importantly, investors state that they cannot solely rely on sell side reports to learn about non-North American companies and that a lack of corporate access gives the impression that management is intentionally withholding important information or is generally uninterested in developing relationships with new investors.

Does a Lack of Corporate Access Eliminate a Company From Your Investment Universe?

Source: Ipreo 2014

To learn more, download Insights into North American Investors' Views of Corporate Access
 

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates, and joint ventures of The Bank of New York Mellon Corporation where authorised and regulated as required within each jurisdiction, and may include The Bank of New York Mellon, One Wall Street, New York, New York 10286, a banking corporation organized and existing pursuant to the laws of the State of New York (member of FDIC) and operating in England through its branch at One Canada Square, London E14 5AL, England, registered in England and Wales with numbers FC005522 and BR000818. The Bank of New York Mellon is supervised and regulated in the United States by the New York State Department of Financial Services and the United States Federal Reserve and authorised in the UK by the Prudential Regulation Authority. The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of regulation by the Prudential Regulation Authority are available upon request. Not all products and services are offered at all locations.

The material contained in this brochure, which may be considered advertising, is for general information and reference purposes only and is not intended to provide or construed as legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. The contents may not be comprehensive or up-to-date, and BNY Mellon will not be responsible for updating any information contained within this brochure. This brochure, and the statements contained herein, are not an offer or solicitation to buy or sell any products (including financial products) or services or to participate in any particular strategy mentioned and should not be construed as such. This brochure is not intended for distribution to, or use by, any person or entity in any jurisdiction or country in which such distribution or use would be contrary to local law or regulation. Similarly, this brochure may not be distributed or used for the purpose of offers or solicitations in any jurisdiction or in any circumstances in which such offers or solicitations are unlawful or not authorised, or where there would be, by virtue of such distribution, new or additional registration requirements. Persons into whose possession this brochure comes are required to inform themselves about and to observe any restrictions that apply to the distribution of this document in their jurisdiction. The information contained in this brochure is for use by wholesale clients only and is not to be relied upon by retail clients. Information contained in this brochure is subject to change without notice BNY Mellon assumes no liability (direct or consequential or any other form of liability) for any errors in or reliance upon this information.  The views expressed in this brochure are those of the contributors only and not those of BNY Mellon.  Any unauthorized use of material contained in this brochure is at the user’s own risk.  Reproduction, distribution, republication and retransmission of material contained in this brochure is prohibited without the prior consent of BNY Mellon.

Depositary Receipts: NOT FDIC, STATE OR FEDERAL AGENCY INSURED. MAY LOSE VALUE. NO BANK, STATE OR FEDERAL AGENCY GUARANTEE.

Trademarks, service marks and logos belong to their respective owners.

© 2014 The Bank of New York Mellon Corporation. All rights reserved.