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Regulatory change has put the investor relations teams of UK companies’ under increasing pressure as demands from investors soar, according to the latest research from Orient Capital, the investor relations specialist and part of Link Group.

The implementation of MiFID II in January last year increased the range of responsibilities IR teams must take on as support they receive from brokers has reduced, and investors engage with issuers directly. This is placing IR teams under strain. In a survey of IR professionals from the UK’s 350 largest companies, 44 per cent see the limited resource available to them as their primary concern, up from just 14 per cent in 2017.
 
The squeeze on resources was felt more acutely among companies in the 250, who typically have smaller budgets and IR teams. 50 per cent of IR professionals for mid-cap companies cited resource as a key concern, compared to 39 per cent in the top 100. 
 
Greater direct interaction with investors, and a more proactive approach to arranging investor roadshows has placed IROs under greater pressure. Some 32 per cent of IROs identify the increase in direct meeting requests from investors as a key challenge. Indeed, Orient Capital’s analysis shows that average IR teams held 24 per cent more meetings with investors last year than the previous year. The typical company in the UK 350 now conducts 328 investor meetings per year – up from 265 meetings in 2017.
 
The increased burden on IR teams has led to larger budgets. Half of all IROs have seen their budget increase since MiFID II. This is slightly more prevalent among the FTSE 100 (53 per cent) than the 250 (47 per cent). Meanwhile, 26 per cent of companies have increased headcount within the IR this year. Nonetheless, rising concerns over resource suggest bigger budgets have proved insufficient to cope with demand.
 
As IR teams’ workloads increase, and they take a more proactive approach with investors, it is important that available resources are used strategically and efficiently. Investor targeting, based on detailed insight of investors, is central to this. Many companies, however, are unsatisfied with the quality of the targeting reports they receive. 38 per cent of respondents would like more information on existing investors to shape their engagement. Worryingly, only 12 per cent of issuers understood their investors’ target price in relation to their stock.
 
Alison Owers, EMEA CEO of Orient Capital, says: “Seismic regulatory changes have shifted the ground beneath investment relations teams. They are under greater pressure as disintermediation takes place, and investors increasingly seek to engage directly. At the same time, sell-side research coverage has reduced, creating a need for IR professionals to take a more proactive approach. This is creating a perfect storm when it comes to demands on time and resource.”
 
“As investor relations teams adapt to the new world, it is more important than ever that they use their available resource as strategically as possible. This means having the right analysis, targeting and support to prioritise and plan meetings, and focus their communications effectively. They cannot afford to fly blind.”

See the article on institutionalassetmanager.com

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https://lnkd.in/ejfswzA

Pour revenir sur l’expérience MiFID2, La SFAF a créé MiFID Vision dont les membres représentent toutes les associations professionnelles.

Beaucoup de choses ont été dites, qui sont consultables sur le site dédié (https://lnkd.in/ei-vRte).

Pour faire court, MyDCA vous livre les phrases-clés des intervenants :

  • Baisse de suivi des corporate par les analystes financier « brokers » (AFG, AMAFI, CLIFF)
  • Hausse de la concentration de la recherche sur un faible nombre d’acteurs (AF2I)
  • Difficulté croissante d’accès à l’information financière et extra-financière (AF2I)
  • Renforcement de la recherche interne et budget global de recherche en légère baisse (AFG)
  • Recherche « broker » en baisse sensible sur les 10 dernières années (AMAFI)
  • Les corporate mid-caps sont préoccupées par le corporate access (CLIFF)
  • Les brokers ne présentent que leurs clients aux corporate (CLIFF)
  • Le targetting pour les corporate se complexifie : couts en hausse, réunions perdues (CLIFF)
  • Corporate Access : l’investisseur ne doit pas avoir à payer pour rencontrer les entreprises dont il est actionnaire (AFG).

Bien évidemment, MyDCA peut permettre de résoudre certains de ces problèmes : contactez-nous!

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MIFID 2 a bousculé les habitudes du Corporate Access « ancienne génération ».

Corporate Access ? C’est cette pratique qui permet de mettre en relation des entreprises cotées et des investisseurs souhaitant avoir une meilleure connaissance des titres en portefeuille.

Au nom de la lutte contre les conflits d’intérêts et la protection du client final, plusieurs changements forts ont été apportés à cette pratique et ils concernent, entre autres, la rémunération du Corporate Access.

De nouveaux modèles sont aujourd’hui possibles, qui viennent compléter l’apport historique des brokers.

 

My DCA le Corporate Access, autrement.

MyDCA est une plate-forme Internet, libre de tout conflit d’intérêts puisqu’elle met à la disposition des gestionnaires d’actifs, des entreprises cotées et des brokers tous les outils nécessaires pour organiser en ligne roadshows, one-to-one, ou autres séminaires.

Le truc en plus ?
MyDCA est entièrement conforme aux règles MIFID 2 en tant que fournisseur de services non lié à la fourniture de recherche. Le modèle économique est lui aussi des plus simples puisqu’il est basé sur un modèle de paiement à l’usage. Autre originalité : c’est celui qui est à l’initiative de la rencontre qui prendra en charge les coûts du meeting. Tout est clair.

Concrètement comment ça marche ?
Vous vous inscrivez gratuitement sur la plateforme www.mydca.eu/login et à partir de là vous pouvez réserver vos événements directement en ligne, accéder à l’évaluation de l’investisseur et du corporate, à des feedback remplissables et consultables rapidement, au profil des sociétés avec toutes les informations utiles (profils des intervenants, informations financières…), à l’édition de feuilles de route (roadmap) complètes pour vos meetings (accès, plan, notifications et rappels)…et bien d’autres informations.

Et le rôle du broker dans tout ça ?
My DCA a été créée pour faire évoluer le modèle, pas le révolutionner. Le broker a toute sa place dans le dispositif : cette plateforme s’affiche comme une solution à exploiter en complément des présentations des brokers. Tout le monde est gagnant. Il est également possible pour les brokers souhaitant dissocier les prestations recherche et corporate access d’utiliser elles-mêmes MyDCA, pour un cout bien inférieur à celui payé aujourd’hui pour l’organisation complète du meeting.

 

Créée en 2016, My DCA a déjà permis plusieurs rencontres au niveau local, national et international.

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Cliff guide 2018
In its 2018 edition “Financial Communication Framework and Practices”, the French Association of Financial Communication Professionals, which represents more than 90% of the market capitalization of the Paris Stock Exchange, reviews the ways in which Roadshows and Corporate Access are organised: It is explained that if historically brokers have proposed to listed companies to organise access to executives (= corporate access), the MiFID II directive in force since January 2018 could change this situation.

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If you still have doubt on how fast Corporate Access is changing due to MiFID2 implementation, read the following FT article :

https://www.ft.com/content/9ef5da00-4ee9-11e8-9471-a083af05aea7

MiFID2 impacts on Corporates are “collateral damages”, as this legislation normally doesn’t apply to them. But by having deep impacts on the relations between brokers and their clients (Asset Managers) it will totally disrupt the Investor Relations space.

The “Free Broker – Marketing Assistant of Corporate” is over. IR departments will have to internalize a huge part of their marketing efforts towards investors that was supported before by the brokers.

At MyDCA we offer a unique digital plateform enabling Investors & Corporates to engage directly and efficiently. Don’t hesitate to login – access is free. https://www.mydca.eu

 

 

 

 

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innovate logo

We are please to announce the first roadshow of a Nasdaq company Innovate Biopharmaceuticals in Paris with MyDCA on the 11 and 12 of April.

As the company is taking all the costs of it, Investors can join for free the event. So fell free to login on MyDCA, www.mydca.eu to create an account to join the roadshow.

Innovate Biopharmaceuticals, Inc., a clinical stage biotechnology company, focuses on developing autoimmune and inflammation therapeutics. Its late-stage clinical pipeline focuses on addressing unmet needs in diseases, such as celiac disease, inflammatory bowel disease (IBD), and nonalcoholic steatohepatitis (NASH).

If you have any question feel free to contact us.

 

Laurentdubois@mydca.eu

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wall-street-a-ouvert-en-baisse-mardi_5723911

It is very interesting to hear that US Small & Mid cap are considering paying for sponsored research to offset the potential threats of shrinking coverage by brokers.

The following article highlights the difficulties that will come in the small & mid cap universe. But more interestingly it shows that we are currently only seeing the early signs of a global reshuffle of Brokers/Corporates/Investors relations.

This impact of MiFID2 in the US should warn us in Europe of this raising issue.

There is no escape, accessing investors and retaining their attention will without no doubt need additional investments from corporates. Unfortunately, one could assume that these costs will be inversely proportional to corporates’ market capitalization.

https://www.irmagazine.com/articles/small-cap/29455/mifid-ii-us-small-caps-said-eye-paid-research

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Fidelity has been one of the few major asset managers in the world to announce at the end of 2017 that it will continue to charge its clients for external research.

It seems that pressure has been to heavy…. Fidelity finally announced that it will absorb these costs

http://citywireselector.com/news/fidelity-makes-u-turn-on-external-research-costs/a1094959?re=52581&ea=503864&utm_source=BulkEmail_Global_Daily&utm_medium=BulkEmail_Global_Daily&utm_campaign=BulkEmail_Global_Daily

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free corporate access pwc

Broker may offer to their clients Corporate Access for free considering that it is a part of research!

Regarding MiFID2 is not allowed anymore and will lead to a global reshuffle of relations between Corporates and Asset Managers.

If you still have doubt that free Corporate Access is an inducement have a look of this very interesting study from PWC :

Free-Corporate-Access-PWC Study

It is clear that free corporate access is an inducement and should be banned. Off course we agree with this position at MyDCA as we provide MiFID2 compliant service of Corporate Access through our dedicated platform www.mydca.eu.

Don’t hesitate to contact us to have a demo.

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QuantiFire Ltd & The Investor Relations Society made a large survey in december 2017. The research sought to establish investors’ views on the impact of MiFID II on their meetings with companies. 302 institutional investors responded.

Key findings :

  • 92% of investors view corporate access as important or critical to their investment process
  • 90% of investors regularly used sell-side corporate access teams last year, while 52% are now less likely to continue doing so

MiFIDII will deeply disrupt these relations too, with an increased scrutiny on price paid for this highly strategic service for Investor & Corporates

To have access to the full article, please follow the link below :

http://irsociety.org.uk/resources/news/item/global-investors-look-to-corporates-to-facilitate-meetings-directly-followi

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