Reaching the Retail Investor: Investor Relations
Reaching the Retail Investor
May 08, 2015
As one of 3,800 issuers listed on the TSX/TSX-V, how can you distinguish your story? How can you effectively connect with the retail audience?
Check out this TMX Equicom webinar and learn how to:
- Increase visibility
- Diversify your shareholder base
- Reduce volatility
- Improve liquidity
Check out this TMX Equicom webinar and learn how to:
- Increase visibility
- Diversify your shareholder base
- Reduce volatility
- Improve liquidity
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Transcript
Reaching the Retail Investor:
Investor Relations
Your Presenters
Cameron Davies
Senior Vice President
Crystal Quast
Director, Media Relations
Mark Cohen
Account Executive
Agenda
1. About retail
2. Why is retail important
3. Strategies to reach retail
1. Indirect
2. Direct
4. Key tools
5. Q&A
Your key audiences
Analysts/Bankers
Institutional Investors
Retail Brokers
Retail Investors
Business Media
Individual investor
1 in 2 Canadians own stock
Purchase in small amount
$166B in discount brokerages
Average portfolio $60-100k
Average 3-4 trades per Q*
About Retail Investors
About Retail
(Dent 2004)
1
2
3
4
5Tend to take long term approach
limited time for investment decisions
Invest in Companies they know
� 3800 co’s on TSX/TSX-V
� Become loyal investors
Wave theory
� Investor confidence
*Source: Investor Economics 2009
Diversify investor base
Generate liquidity
They have capital
Why Retail is important
Challenges
Time consuming
Typically not as knowledgeable
Emotional
Strategies and Tactics:
Attracting Investors
Two types: Stock picker or Asset gatherer
Average 2 trades per account per quarter*
Heavy reliance on analysts
Move towards active management
Concentrated in large urban markets
Indirect: Retail Brokers
*Source: Investor Economics 2009
Indirect: Retail Brokers
Source: Investor Economics 2009
% of advisors
% of assets
3.85.1
2019
39.542.3
4.8 4.8
12.413.1
19.116.2
10,000 advisors
$573B in assets
Targeting is critical
Find champions
Broker Lunches/Branch Presentations
Don’t forget local market
Gather Feedback
Update regularly – Top 10
Provide succinct and compelling points
Indirect: Retail Brokers
Pitching your story: messaging
the right information
rapidly transferred
with high recall
the right information
it’s about distilled nuggets
somethingbig coming
valueproposition
growth strategy
board
product description
mission
visionlast year’s
results
intellectualproperty
media coverage
corporategovernance
head shots
awards
table of contents
capabilities
features
benefits
values
typically, the big three
opportunityneed
expressed
strategic, core differentiator(what defines you, guides all you do)
need addressed
how you are going to stay on topgrowth strategy
rapidly transferred
rapidly transferred
photography
maps
diagrams
illustrations
big fonts
Capturing interest + making an impression
high recall
plot
emotion
images
proprietary language
the unexpected
Ways to Make Them Remember
Strategies and Tactics:
Attracting Investors
Target key Analysts in the sector
Focus on the growth strategy,
Clearly identify milestones
Can help facilitate meetings
Quotable for media
Indirect: Sell-Side Analysts
Significant influence over brokers
The broker roadshow
Quarterly
CEO/CFO mandatory
new potential investors/ current shareholders
leverage sell side
Gather feedback
Build presence/maintain visibility
RoadTips
Strategies and Tactics:
Attracting Investors
Focus on key messages
Identify sector reporter
Target media carefully
Select a media spokesperson
Media training
Direct: Business Media - Working with Journalists
Shrinking Newsrooms
Growth of online media
Main source of investor information is now online
Build plan – getting coverage takes time
Be realistic
Direct: Business Media – working with Journalists
Build concerted strategy
Make your own news
Amp up Google juice
Crisis communications
Direct: Social Media
Ensure maximum visibility
Strategies and Tactics:
Key Tools
Critical tool – first stop
Include all relevant info
Develop an IR section and update regularly
Website
Virtual Roadshow
Allow investors to see and hear management
Allow for broad distribution of story
Integrate with social media
Fact Sheet
One page double sided
Effective for introductions
Simple language
Growth strategy & financial overview
Have a 12 month plan
Keep messages simple
Will help generate liquidity
Takes time
Summary
Criticalcomponent for any IR program
Reaching the Retail Investor:
Investor Relations
Additional Questions Please Contact:
Cameron Davies
Senior Vice President
TMX Equicom
416-815-0700 x 260
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