14 asociadas de AERI premiadas por su liderazgo corporativo y expertise en relación con inversores. 19 de abril
El pasado 5 de marzo se produjo una reunión institucional entre AERI y la CNMV. Durante la misma quedó claro el interés de ambas instituciones por desarrollar canales de comunicación y grupos de trabajo conjuntos para distintos temas que afectan a las compañías cotizadas españolas.
The survey highlights three areas of concern for investors looking ahead to the 2018 annual meeting season:
And the results also revealed the following:
The new MiFID2 rules on payments for investment that came into effect on 3 January have already shrunk the market for European equity research, although the ultimate impact of the regulations probably won’t be evident before the end of 2018.
But it is transforming massively the Industry with some indirect impacts on Investor Relations.
Most commentary has understandably focused on the impacts for the buy-side and the sell-side, but the knock-on effects for corporates are less well understood.
What does MiFID2 mean for sell-side and buy-side?
The old model – whereby every broker spoke to every investor and research was (almost) freely available – is coming to an end. With a growing number of institutional investors announcing that they will cease charging clients for research and instead absorb research costs into their own P&Ls under the new rules, research/advisory budgets should decrease by 20% year-over-year according to a recent Greenwich Associates survey.
MiFiD2 has also prompted investors to cut ties with research providers (roughly 20%). For the first time, the two sides have found themselves engaged in tough negotiations about how to price research. We expect to see a more exclusive model in time, with relationships and flows increasingly concentrated on a smaller number of counterparts. The most highly-ranked analysts will become even more influential as they increasingly dominate client relationships at the expense of the “long tail” of analysts outside the top 5 in their sector.
What does it mean for corporates?
MiFID2 does not directly regulate corporate interactions with the buy-side or sell-side. However, we have identified several indirect impacts that investor relations professionals (IRs) need to be aware of. Some of these impacts are being felt already, whilst others will be more of a ‘slow burn’ – we think it is likely to be a few years before the implications are fully understood. We expect 2018 will be somewhat of an experimental year for the buy-side and sell-side in terms of adjusting to the new operating model of MiFD2. Pricing models and account management procedures may well evolve during the coming year.
Research distribution is the first impact IRs will have seen from MiFID2. As the sell-side tightly controls the distribution of their data and research notes to the buy-side, corporates will notice an increasing number of brokers sending them research via html links, rather than in pdf format. This could present a challenge to IRs who wish to collate research from several brokers for their management and board members.
Research coverage is the second area where IRs may see an impact. As the buy-side becomes very selective in their choice of brokers with whom they will work and pay, there is likely to be deflationary cost pressure on sell-side advisory businesses (in addition to deflation on execution businesses from the rise of passive investing). This could lead to some consolidation on the sell-side and a reduction in the number of analysts covering a stock. Some IRs at large cap companies believe this could have a positive impact and lead to higher quality research coverage overall, if the lower quality analysts dropped coverage. However, we are not so sure – could “juniorisation” of research coverage be another way for some sell-side firms to reduce their cost base? Also, for small- or midcap companies, a significant drop in the number of analysts covering the stock is unlikely to be helpful.
IRs also need to monitor how MiFID2 impacts consensus management. It remains to be seen whether the quality of consensus will be positively or negatively impacted by the potential changes in research coverage. With brokers tightly controlling the distribution of their data, how relevant will the consensus data published by aggregators be post MiFID2? Could there be more bonus on IRs teams to publish consensus data on their IR websites, if they become the only players who are seeing the full range of broker consensus estimates?
Corporate access and the impact of MiFD2 on roadshows and conferences is the topic IRs ask us about the most. It is also the area where we have seen a significant amount of fake news circulated in the market. Can brokers still book meetings with non-clients? Will corporates have to pay to have roadshows organised for them? Will more investors come to IR teams directly to set up meetings? How can IR teams know which investors are still on broker client lists? How will MiFID2 impact investors in North America? Will some conferences be cancelled, or will roadshow schedules be lighter than before?
Having a transparent dialogue with analysts, specialist sales and corporate access teams who you trust will certainly be crucial for navigating this evolving landscape. Best practice for roadshow organisation is likely to vary according to geography, and on whether the roadshow is open solely to current top shareholders or to potential new shareholders.
Market intelligence provided by trusted brokers will remain critical to high quality and high-impact investor targeting. The daily interactions that analysts, salespeople, traders and corporate access have with the buy-side is unique to the sell-side and will have a more important role post MiFID2: as investors become highly selective about which corporate meetings to accept, high quality and timely insight into which investors are genuinely interested in the stock can be invaluable information for IR teams.
With much uncertainty for IRs about the real impacts of MiFID2, many teams are adopting a ‘business as usual’ and ‘wait and see’ approach in the short-term, which seems sensible to us. We advise IRs to be more vigilant with investor targeting in general; and IRs may need to re-think their previously held views about the regional strengths of individual brokers.
Benedicte Thibord, Global Head of Corporate/Expert Access, Exane BNP Paribas
Jane Henderson, Corporate Access originator, Exane BNP Paribas
MIFID II: Top tips to make sure you are ready
There’s been a lot written and talked about MiFID II already, so I am not going to add to the reams here. However, it has struck me how little has been said about the impact all this new regulation will have on listed companies themselves. What is clear is that no-one really knows what the World will really look like post implementation of MiFID II, but there is consensus that there will be a period of, possibly significant, turmoil until the great machine that is the capital markets works out how to make it work best.
The regulation most relevant to listed companies principally changes the way information will flow around the capital markets, that is information about the stocks and shares listed on the London Stock Exchange, ie our companies. Information is the oil that makes the capital markets engine work, and the cost of this oil, or facilitation of information flow, will partly shift from the buyers of stocks and shares to the issuers of stocks and shares – companies. So what can we do to be ready for this imminent shift and the period of turmoil that may commence on 3 January 2018? Well, here are my top tips, hope you find them useful
1) Know your investors: This may sound fairly obvious to many of you, but make sure you properly understand who your shareholders are, or indeed should or could be. Not just the names of the fund management firms, but the funds that own your shares, why they own them and how your shares fit into their portfolios. Make sure you know who the individuals are that make the decisions about owning your shares, and that you have a dialogue with them. There are some fantastic systems in the market today that, when fully utilised, can provide a richness of information only dreamed of a mere five years ago. Make sure you’ve got the one that best suits your needs and provides you with the information you need now and start enriching your database.
2) Understand what you will get from your corporate brokers. Many brokers out there are saying little will change and I do hope that is the case, however, I fear much may change.
Find out if their research department is investing in your sector – are they aiming for top three coverage of your whole sector, or are they just being selective with ‘maintenance’ research. If the former, great, but if the latter how good will they be at supporting your equity story. You may need to think about a change in corporate broker.
Interrogate them and understand which institutions they will continue to have a relationship with. They won’t be much help if they can only talk to a small proportion of your share register. They may promise that they can speak to everyone through corporate broking/corporate access, but I would question how rich the information flow will continue to be where the house does not have a research/equity trading relationship.
Work with them to establish how they will continue to support you in corporate access, you may be able to continue to rely on them for some outreach, but you may well need to look elsewhere, or do more yourself. Understanding how that support might change now, will help make sure you don’t get left behind in the competition for capital.
3) Talk to the analysts covering your stock – find out what will change. Talk to the analysts who currently cover you and try and find out the following:
You may, of course, not get all the answers you wanted to hear from this exercise…if so, explore alternative ways of getting research written on your company. That may mean engaging new research houses, or may mean paid for research. Investors don’t mind if research is paid for by companies, so long as it is informative and insightful – information is what fuels their interest, so make sure they have access to it in anyway you can.
4) Understand how you will be able to collect consensus. Building on the above, IROs need to understand whether the information that comes from individual analysts will change, and therefore how companies will collect consensus. Will they continue to share their models with you or do you need to find a new way for them feed data into your consensus tracker?
I’m a great advocate for collecting consensus directly as that ensures you can understand how an analyst builds and works their model on your company. I suspect little will change here as analysts will likely want to continue to be part of consensus and there is no threat to their economic model in sharing their forecasts with a company. However, if the landscape does radically shift, IROs may need to look into using third party aggregators – so have a look around and see how these work and whether they work for you. With that in mind take the opportunity to make sure you understand how current consensus aggregators such as Bloomberg collect their data and how their analysis of the numbers may differ from yours.
5) Update your calling card. Investors often start looking at a company through their website and/or report and accounts. So make sure the information you have on there is clear, succinct, relevant and useful. Make sure it is easy to understand who you are, what you do, how you make money (business model and strategy), how you measure yourselves (KPIs), the key risks in your business and industry and how management is incentivised and rewarded. Make sure all relevant information, including any recent presentations you are using on roadshows, are easily available.
This exercise, combined with some of the other tips here may lead you to update your equity story. Ask yourself is it clear and punchy? Does it tell the story as we actually want to tell it? Does it appeal to the right investors? Does it cover all the bases? It’s always a good idea to do this exercise on a regular basis, but do it now, before everyone else beats you to it!
Having sat on the judging panel for our best practice awards, it struck me how hard some companies make it to understand the key reasons why and investor should buy your shares. So keep it clear and simple and make sure you stand out from the crowd.
6) Network. Build your network with both sell and buy side. Investors are always happy to hear directly from companies, so get out there and network, don’t rely on others to do it for you. Build your CRM database so you always know who is, or isn’t. or should be interested in your shares.
Network with your peers and other IROs. I’ve often said that IR can be a lonely role in companies, so use the IR Society to network with other IROs. Build your own network of IROs who are facing similar challenges to you. You never know how useful a piece of advice might be, and of course how useful your advice might be to others. We’re a rich pool of talent in the IR Industry, together each of us can be even better.
7) Make sure your management team understand the implications. There are some very enlightened management teams out there about IR, but sadly there are many less so. As a service function management are often reluctant to spend on IR. However as the burden of cost of accessing the capital markets shifts more on to companies themselves helping management teams understand the importance of good communication and of winning the competition for capital is vitally important. A good well communicated investment story can only lead to a full and fair valuation, which of course helps the value of share options!
8) Be prepared to do a lot more yourself. If there is one certainty of MiFID II it is that we will all likely be much busier, whether it be corporate access, feedback, research and consensus management or just updating our IR assets. Investors will undoubtedly rely more on IROs directly, while a good thing this will clearly take up more time. Think carefully about how you will prioritise and resource up – either internally or externally – to meet these challenges.
This is an exciting time for the IR industry and with a little bit of planning now, the transition into and through MiFID II should be relatively painless.
David Lloyd-Seed, Chair of the IR Society and Director of Investor Relations, Telefónica UK (O2)
Este Newsletter viene lleno de próximas actividades y eventos de aquí a final de año. Incluye actividades de formación, de mejores prácticas y de networking en los ámbitos del gobierno corporativo, la gestión del voto de juntas generales y actividad de relaciones con inversores. En los próximos días os enviaremos información más detallada de ellos, […]
Con la colaboración de FEROES y CMi2i organizamos esta nueva sesión, ya celebrada en Madrid, para conocer las implicaciones que tiene la regulación de MIFID II para los profesionales de IR y para los Emisores. Download PDF
Este Newsletter viene lleno de próximas actividades y eventos. En los próximos días os iremos enviando información más detallada de ellos, pero por ahora vete apuntando en tu agenda aquellas fechas que te interesen! Newsletter AERI Enero 2017
15 diciembre, 2016 Madrid Comida de Navidad en Madrid. Restaurante Doki Doki Un año más organizamos nuestra tradicional comida de Navidad en Madrid; dado el éxito de la convocatoria del año pasado volveremos a celebrarla en el restaurante Doki Doki, en la C/ Villalar 4. Más información próximamente
Desde el momento que entró en vigor el Reglamento (UE) Nº 596/2014 del Parlamento Europeo y del Consejo, de 16 de abril, sobre abuso de mercado (Reglamento sobre Abuso de Mercado), nuestro colaborador Header comenzó a trabajar en una aplicación para que los Emisores estén en condiciones de gestionar toda la información necesaria para cumplir […]
Estimados Asociados, Retomando la actividad pública tras el verano, me gustaría invitaros a un nuevo desayuno organizado junto a Eurocofín: Perspectivas económicas globales. Implicaciones para las compañías y el sector financiero + Información
Desde el pasado 3 de julio se aplica en España y en el resto de Europa el Reglamento EU no. 596/2016 sobre el abuso de mercado (conocido como “MAR” por sus siglas en Inglés). La nueva ley cambia las normas en materia de uso de información privilegiada y la manera en la que debes mantener tu lista de iniciados.
¿Cuáles son los objetivos del MAR?
Seguir el ritmo de los últimos avances en los mercados financieros y crear un nivel común de transparencia, al igual que proteger inversores en los estados miembros de la Unión Europea.
¿A quién se aplica el MAR?
Los emisores de instrumentos financieros en mercados regulados, sistemas de negociación multilateral (SNM) y los sistemas organizados de contratación (SOC) en los estados miembros de la Unión Europea. El MAR también se aplica a los instrumentos derivados que se negocien a través de estas plataformas. Previamente, la ley sólo se aplicaba a mercados regulados.
Listas de iniciados
Los emisores o las personas que actúen en su nombre o por su cuenta (por ejemplo, abogados) deben elaborar una lista de todas las personas que tengan acceso a información privilegiada (los “iniciados”). La lista debe incluir todos aquellos que tengan acceso temporal o permanente a información privilegiada. La lista se debe mantener constantemente actualizada, y los iniciados deben reconocer por escrito sus obligaciones.
Entre los cambios principales:
Para leer el documento oficial de la Comisión Europea:
Estamos cerrando un acuerdo de colaboración con EQS, que tiene una herramienta que permite gestionar la lista de iniciados conforme a MAR. Para más información: http://insider-manager.com/es/es
Comida de Navidad en Barcelona. 16 de diciembre. Tras una sesión de trabajo, se celebró la Comida de Navidad en Barcelona en el restaurante La Balsa. Estuvieron presentes casi todas las compañías Asociadas de Cataluña!
AERI & Mirabaud Spanish Equities Conference en Ginebra. 7 de abril y 1ª quincena de octubre. Dada la gran demanda y éxito de las ediciones anteriores, por motivos logísticos vamos a partir el evento en 2 fechas. Plazas limitadas, por orden de llegada, priorizando a compañías que han participado en ediciones anteriores y buscando en […]
Investis presenta su último informe trimestral sobre la presencia digital de las compañías del IBEX 35. Todos aquellos Asociados (no sólo IBEX 35) que estén interesados en obtener un informe de benchmark personalizado contra 4 peers pueden solicitarlo a través de Davide Mastrosimone: email@example.com
Sin coste para Asociados de AERI!
14 de julio de 2015 Con una participación de 20 personas de 12 compañías diferentes, hemos celebrado en Barcelona nuestra tradicional comida de verano. Patrocinada por RR Donnelley y Header-Junta de Accionistas, este año hemos elegido el restaurante One Ocean Club, en la Marina Port Vell. Al finalizar el evento se ha procedido a una […]
Después de 20 años ayudando a las Relaciones con Inversores en España, AERI publicó un libro que recoge la evolución de la función a lo largo de todo este tiempo.
Este libro no se encuentra a la venta; si deseas conseguir un ejemplar solicítalo a través de la sección de contacto.