{"id":2274,"date":"2020-04-03T10:58:14","date_gmt":"2020-04-03T13:58:14","guid":{"rendered":"https:\/\/inspirgroup.com\/?p=2274"},"modified":"2023-06-12T16:47:59","modified_gmt":"2023-06-12T19:47:59","slug":"the-rapidly-evolving-landscape-of-investor-outreach-during-the-covid-19-era","status":"publish","type":"post","link":"https:\/\/inspirgroup.com\/en\/the-rapidly-evolving-landscape-of-investor-outreach-during-the-covid-19-era\/","title":{"rendered":"The Rapidly Evolving Landscape of Investor Outreach During the COVID-19 Era"},"content":{"rendered":"

The Rapidly Evolving Landscape of Investor Outreach During the COVID-19 Era<\/h3>\n

It is not breaking news that IR teams have been seeking new ways to step up their investor outreach strategies in response to rapid and dramatic shifts in the investment landscape \u2013 MIFID II and its effects on traditional engagement models, the rapidly growing share of passive investing, ESG-dedicated investors who require additional disclosure and communications adjustments.\u00a0But we are now in the midst of an abrupt, seismic shift in how we engage within the financial community\u00a0\u2013\u00a0the coronavirus pandemic is requiring management and IR teams to adjust to new levels and frequency of disclosure, as well as think outside of the box and proactively employ new outreach methods.\u00a0Here is a look at what is changing in the market right now.<\/strong><\/p>\n

Hands-on approach towards disclosure<\/u><\/strong><\/p>\n

The number of coronavirus-related material facts and market notices published by global issuers reporting to the U.S. SEC is growing at a rapid clip<\/strong>, with almost 249 filings on the matter between February 12 and March 26. There were 27 filings on March 25 as compared to one on February 12. (Source: Factset)<\/p>\n

Based on work with our Latam clients over the last month and market observations,major topics covered in filings include: guidance updates and cancellations, postponement of scheduled share buyback programs and general meetings, suspension of dividends, cost savings measures, restructuring and drawdowns of credit lines, plant shutdowns, and sensitivity analysis for undergoing M&A.<\/strong>\u00a0\u00a0In an upcoming note, we will discuss in more detail the\u00a0disclosure \/ filing trends over the last month.<\/p>\n

Given the principal role of credibility in investment decisions, communications of issuers\u2019 contingency plans are vital in demonstrating management\u2019s preparedness and resilience in tackling huge financial and nonfinancial challenges they are facing as a result of COVID-19.<\/p>\n

High-touch outreach to the investment community<\/u><\/strong><\/p>\n

Strong connectivity has always been the cornerstone of the issuer-investor dynamic, and today\u2019s crisis is proving no different.\u00a0The market\u2019s highly adaptable nature, powered by agile technology tools, is showing a fast and broad transition from in-person interactions to fully virtual settings<\/strong>, given the current \u201clockdown\u201d restrictions that prevent travel. Investors still want to talk with company management and issuers, therefore, are not going silent.\u00a0They are leveraging this unique context to strengthen their relationship-building process with existing and potential investors.\u00a0How has this rapid and dramatic migration to a fully virtual world been evolving?<\/strong><\/p>\n

In early March, an article in the\u00a0Financial Times<\/em>\u00a0announced substantially reduced investor contact due to cancelled roadshows, conferences and capital markets days. But the market has quickly turned this situation around, with quality online interactions being organized between issuers and institutional investors.\u00a0Our Investor Access team has facilitated and is closely monitoring outreach trends between issuers, the buy-side and the sell-side.\u00a0Activities in Brazil include:<\/strong><\/p>\n