October 6, 2021
Retail Investors: 5 Things Your IR Team Knows (And You Should Too)
IR Magazine & Broadridge recently published survey results from 315 investor relations professionals about their views on retail investors. Here are 5 key findings:
1. Nearly three in 10 companies have seen an increase in retail investment in the past 12 months. More than a quarter have seen an increase from three years ago.
2. While 55 percent of IROs are happy with their current level of retail investment, just over a quarter would like to see a higher proportion of shares held by retail investors. But nearly half of IROs in companies with more than 20 percent retail investment would like to see such retail investors hold fewer shares.
3. Press releases and IR websites are the most effective ways for IROs to communicate with retail investors. A strong ESG story can promote retail shareholder loyalty.
4. The adoption of virtual AGMs has resulted in greater retail investor attendance.
5. The biggest challenge retail investors bring is a perceived lack of knowledge, compared with institutional investors. Communications is the biggest challenge for small caps.
– Liz Dunshee