The financial services industry had several challenges this year, however, IHS Markit's Michael McPolin says the pa… https://t.co/Fkt34An61L
IHS Markit Perspectives - Roadmap for IR Beyond Covid-19 - Part 9
IHS Markit's Perception Analytics team engages in in-depth discussions with investors and analysts daily. In light of market volatility and economic uncertainty, IHS Markit is speaking to investors and analysts on a regular basis to assess how the current situation with COVID-19 is impacting their evaluations of and engagement with corporate issuers.
As many Investor Relations teams plan for 2021 with the hopes of a recovery and return to stability, we ask investors and analysts for their advice on how IR should navigate the 'new normal.'
Companies should adopt a hybrid approach to online/offline engagement by continuing virtual meetings that maximize time and cost efficiency, while also weighing in-person options for events where face-to-face interaction is invaluable.
"In a normal environment, companies can do a mix of both virtual and in-person interaction. With conferences and Analyst Days, there would be a webcasted presentation and then we would engage in person."
To a greater extent than ever, IR is considered a strategic tool in the COVID-19 environment, wherein the effectiveness of managing investor relationships can be a competitive advantage or disadvantage.
IR should be involved with the C-suite's long-term strategy discussions, understand the bear/bull scenarios for the business environment, and manage the market's expectations accordingly. Transparency, timeliness, and foresight are important attributes for IR when emerging from crises.
"Good IR, especially through COVID-19, can definitely impact the multiples that companies trade on."
Capitalizing on the benefits of virtual engagement, IR should sustain the increased level of visibility, accessibility, and proactiveness that investors and analysts have come to value in 2020.
"In terms of the frequency of virtual engagement, I want as much corporate access as I can get."
IHS Markit's Perception team will continue to gather real-time market feedback as the situation unfolds, so please look out for the next part of this series.
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
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