From: IR FOR SMALL CAPS – IR Society is focused on providing advice and help smaller cap companies
An investment case is an integral part of any company’s communications, even more so for small caps and AIM-listed companies.
With changes in the market environment taking place under MiFID II, corporates and IROs for smaller listed companies have even before a greater responsibility to ensure a clear understanding of the business.
Consequently, the investment case should be used as a clear pitch, with dedicated content to explain how a company differs from the competition and why investors would profit from investing.
A smooth sea, never made a skilful sailor
Investment cases are on the rise – With the increasing obligation to stand out from the crowd and demonstrate the company’s key strengths, the overall trend has been that of an increase in the number of investment cases, both in the annual report and on the corporate website.
Corporates are choosing to put their investment cases online – Particularly in the face of MiFID II, it is more common for companies to have an investment case featured on their corporate website.
However, out of the companies that did have an investment case on both their corporate website, company presentation and in their annual report, only a small number made these consistent.
Many companies instead highlighted different reasons to invest on each channel and used more data on one or the other. Also, a very small number of these companies included an investment case in their most recent investor presentation.
The investment case should be used as a clear pitch, with dedicated content to explain how a company differs from the competition and from similar stocks
Key areas of focus include:
What good looks like – How companies can build a best practice investment case:
The focus for small caps should be on increasing the return on investment of their communications, using the channels they already own
Daniel Redman – research and strategy director at Design Portfolio – has highlights new research to explain the importance of making an investment case https://www.design-portfolio.co.uk/about
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