IR professionals perceive a drop in the importance of global financial centers while increasingly steering their companies’ course to investors, according to BNY Mellon’s survey.
The 11th edition of the BNY Mellon Global Investor Relations survey illustrates an overall drop in focus on the top five traditional global financial centers, as leading sources for new or increased investment in the next five years. While concerns of Geopolitical Risk Endure, IR professionals responding viewed the United States as the most resilient global financial center.
Let’s look at this and other findings of this benchmark survey of IR professionals worldwide:
While the U.S. continues to be perceived by most respondents as a source for investment opportunities, cited by 80% in 2017, this decreased from 91% in 2015. Over the same period, the number two-ranked United Kingdom declined to 58% from 76%, followed by China at 26%, which declined from 50% in 2015, Singapore at 26%, down from 44%, and Hong Kong at 24%, down from 37% in 2015, respectively.
“IR professionals are responding to critical market developments such as the growth of passive investment and the headwinds affecting the global brokerage community by taking on more responsibility for market engagement themselves,” said Christopher Kearns, CEO of BNY Mellon's Depositary Receipts business. “These developments stem from, among other things, regulatory reforms resulting from MiFID II, new global stewardship codes and the realities of the current market environment, which are in turn placing considerable new demands on investor relations teams globally.”
The role of an IR professional continues to evolve and increase in strategic importance, and this year’s research also highlights major trends and issues in IR to help the issuer community best prepare for the future. This includes insights into gender equality in the IR profession based on the gender profile of survey respondents and how IR professionals are reacting to critical market developments, including the growth of passive and environmental, social and corporate governance (ESG) investing.
Gender Equality (based on the gender profile of survey respondents):
Passive and ESG Investing (based on survey respondent feedback):
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