The globalization in AUM is forcing companies, regardless of HQ location, to reach out beyond the local investment community in order to maximize company valuation and potentially create a more stable investor base.
Growing your investor base globally is a rising challenge many IROs face and finding the right help to prepare for this task can be difficult. There are several key factors that IROs should consider when engaging international investors as well as they have to answer to these questions:
- How has global AUM distribution changed and what does that mean for your potential investor base?
- Will you need to refine your investment thesis to address a global audience?
- What are the cultural differences of investors in the various areas around the globe and are they interested in different performance metrics?
- In what geographies should you focus your international outrech efforts?
- Are there rules and regulations you need to understand when marketing in geographies other than your own?
- How do you determine whether your story resonates better in one geography versus the next before you hit the road?
It is important for IROs travelling abroad to understand how AUM distribution has changed over time and why it is essential to broaden the investor base, understand the difference in expectation from investors in various geographies, and how to develop a global target list which maximize hit ratio and management efficiency, as well as developing a successful international IR program and how to harness the sell side and IR providers to optimize efforts.
Bianca Fersini Mastelloni
Bianca Fersini Mastelloni is Chairman and CEO of Polytems HIR. She is a seasoned consultant in Corporate Communication with extensive experience for over 30 years. Since 1999 she is active in Investor Relations and Financial Communication for companies listed on the major financial markets. Bianca provides strategic IR, corporate access in Italy, Europe, USA, investor’s market intelligence, profiling investors, critical communication and reputation. A scholar of issues pertaining to Communications and Investor Relations. Bianca studied at SUNY – State University of New York, Buffalo and at Boston University, Boston, and she works as lecturer with some Italian University. Bianca is author of the book Investor Relations ed Etica , Efficacia e Vantaggi Competitivi - edited from Guerini e Associati - as of as several articles about Investor Relations and financial communication.