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New Trends In Investor Services
Category: Public Companies
Subcategory: Investor Relations

 

New Trends In Investor Services

An Investor relations procedure is one of the most valuable tools for arranging how a company intends to deal with investors. It provides the investors with a single point of reference for accessing annual reports. It signifies more than just a popular phrase that is used in the corporate environment. Investor relations entails committing time, money and effort that goes into developing and maintaining smooth lines of communications between the company and various investors. It is important to have a clear investor policy to help keep the system organized. Since the mainstay of any company is a strong base of investors, providing good services to these investors will enable your business to keep a stronghold on the investor base.

 

There are several strategies that can be adopted by companies to help keep their investor relations growing. Some of them are as follows:

  • Organized system: An organized system would include a spokesperson, a model for dealing with negative information, a set-up to deal with investor feedback, a structure connecting shareholders and the board of directors, and routines for the disclosure of financial and other related information.
  • Know your main investors: Every company should have complete information regarding their key investors. It helps to conduct a thorough analysis of the makeup of the investors, as well as find out about the specific needs of each investor. It is important to note that shareholders might require other details regarding the intangible assets, besides seeking financial information. So, it is important to prepare reports detailing the non-financial performance of your company.
  • Create effective channels of communication: It is important to create effective channels of communication that can send accurate information to investors. A variety of media can be used to accommodate different types of investors and serve to maintain investor relations by disseminating relevant information on time. No matter which channel of communication you use, the main purpose of putting across the intended message in the most effective form should be fulfilled.
  • Communication strategies: Communication forms the key to success of maintaining successful investor relations. There are a number of ways that can help you keep the lines of communication open. They are corporate websites, online streaming, and email, to name a few. A corporate website helps you to have direct communication with your investors. Online streaming is basically helpful for those investors who are Unable to attend shareholders’ meetings and conferences. Online streaming webcasts the meetings over the Internet and allows investors to receive the information they need. Emails are also very important in maintaining good investor relations, as you can easily convey relevant information instantly to the principal investors. It helps to keep them updated and well informed.
  • Offer services of a transfer agent: Many companies offer the services of a dependable transfer agent. As transfer agents handle a major part of the interactions between a company and its investors, these organizations hold the loyalty of the investors. A reliable transfer agent will help to maintain good investor relations.
  • Online brokerage: An online brokerage firm offers investors an opportunity to select their own stocks and funds without worrying about the time, as online portfolios can be easily monitored at any point of time throughout the day. Online options help in promoting a wide range of fee choices, services, tools and other related factors to attract potential investors.