Interaction Partners & schedulR Update: MiFID 2 and Paying for Research, Italy, pilot events
MiFID 2: Asset Managers will most likely pay for Research out of their own pockets. In September, heavyweight asset managers AXA IM and BlackRock announced their decision to ‘absorb' research costs under MiFID 2 (i.e. pay it out of their own P&L). Soon afterwards, Schroders, Union and Henderson made the same move. ‘Absorbing’ the cost of research is set to become the standard under MiFID 2. Clearly, this will impact roadshows and conferences, as asset managers will have to pay for such services out of their own P&L as well in the future. It has to be seen if their willingness to pay will be sufficient to allow for ‘broker organized events’ in the future. We are skeptical on that. More details on these developments here.
MiFID 2 events @ IR Club in Zurich & C.I.R.A. in Vienna: lots of interest, IROs poised to become more important and active. We had the pleasure of participating as panelists at two MiFID 2 events in Zurich and Vienna, organized by IPREO respectively with the IR Club of Switzerland and the Cercle Investor Relations Austria (C.I.R.A.). Both events were very well attended. Although the events raised new and interesting questions about corporate access under MiFID 2, three key points appeared to be obvious in this respect: (1) MiFID 2 has quickly climbed the corporates agenda; (2) continuation of the existing status quo for research and corporate access is a very unlikely scenario; and (3) it is not yet clear how the new models for corporate access will look like, but surely Investor Relations Officers will (have to) take on a more important and more active role.
Our Roadshows – now available in Italy too – in collaboration with CDR Communication. We are happy to announce that we are now offering roadshows not only in Switzerland (Zurich, Geneva, Lugano, Basel, Bern, Zug) but also in Italy. In order to organize such events and maintain the usual high-quality, we are now cooperating with CDR Communication, a renowned IR Agency in Milan (details here). This allows us to take advantage of the geographical (and linguistic) proximity of Lugano and Milan, and to organize even better events that minimize travel expenses (for example, Zurich - Lugano - Milan). All events in Milan are organized via schedulR, our Roadshow Workflow Tool, which gives companies convenient online access to the schedule and investor profiles and facilitates feedback collection and analysis. Forza CDR, Forza Interaction Partners!
Roadshows Planning 2018 – time for a MiFID 2 ‘Plan B’ and to meet new investors (finally). Most companies have already started planning their roadshow activities for 2018, while at the same time, the question marks on the ‘Broker Sponsored Roadshow’ model are growing. We are witnessing an increasing interest from companies to develop a ‘Plan B’ and to experience/test a ‘Broker Independent Roadshow’ in 2018. The decision to include a ‘Broker Independent Roadshow’ in your 2018 plan is even easier if you consider the fact that you can and will meet new investors (on average 30% compare to broker sponsored events).
‘Pilot Event’ with satisfaction guarantee and 30% new investors: anyone? If you are interested in developing a ‘Plan B’ and broadening your investor base, we are available for a discussion and a demo of our platform (schedulR). Our fee of CHF 5’000 for a one-day event, which is payable only if you are happy with the results, includes investor targeting, invitations, schedule management, organization of logistics, briefing, on site presence of one of our team members, feedback collection and analysis. Visit our website for our next events (homepage) and an updated list of our past events ('offering')
Apparently, it pays to hire a former sell-side analyst as Investor Relations Officer. While browsing the Columbia Law School blog we stumbled upon a study (here), which shows how hiring a former sell-side analyst as an IR Officer has a positive impact on the coverage and on the interest of institutional investors. The study didn’t specifically relate to IR consultants, but we leave that as it is