Companies rate China and Germany as the most strategic sources of new investment capital over the next five years after the US and the UK, according to a survey report published by BNY Mellon.
The US (91%), UK (76%), China (50%), Germany (45%), and Singapore (44%) were rated as the five most strategically important countries in the next five years for new sources of investment capital.
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The survey, Global Trends in Investor Relations, found that 65% of the surveyed companies were engaging with sovereign wealth funds (SWFs) in 2015, up from 57% in 2013.
Among these SWFs, Norges Bank Investment Management (42%), Government of Singapore Investment Corporation (38%), and Abu Dhabi Investment Authority (30%) are engaged by global companies.
According to BNY Mellon’s annual investor relations survey, systemic market and political risk remained as companies’ top two concerns impacting global market confidence.
The report, in which 550 respondents across 54 countries participated, showed that the percentage of company board members meeting with investors doubled to 49% in 2015 from 24% in the 2013.
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By GlobalDataAlso, 55% of the respondents said that senior managers were increasingly part of those meetings compared to just 43% in 2013, while IROs conduct 40% more one-on-one investor meetings.
The survey revealed that 32% of companies reported reaching out to socially responsible/ESG investors, an increase from 26% in 2013. The results have also shown a continuous fall in outreach to retail investors by CEOs, CFOs and IROs since 2010.
According to the 2015 report, only 30% of companies use social media to engage investors.
The study said that 53% of the Eastern European firms use social media to engage investors, while North America uses only 24% and mega-cap companies (54%) use social media in IR compared to micro-cap firms (26%).
BNY Mellon CEO of depositary receipts business Christopher Kearns said: "Responses indicate that after a post-crisis period focused almost solely on investors amid intense competition for capital, companies now are devoting more time to other IR activities, such as board member involvement, enhancing senior managers’ visibility, and improving relationships with analysts."
BNY Mellon DR group head of the global IR advisory team Guy Gresham said: "In developing this survey, we’ve focused on helping companies identify best practices in investor relations by providing actionable benchmarks. Whether it’s meeting the evolving needs of long-term stakeholders or enhancing disclosure, new opportunities are always emerging for global firms to demonstrate leadership."
