Buy-Side seminar points to the web and social media as prime channels of communication
I attended an interesting CIRI (Canadian Investor Relations Institute) round-table luncheon yesterday, and the topic of discussion was Understanding how the buy-side makes decisions . The format of the session was great; it was almost entirely Q&A and provided the opportunity for participants to openly dialogue with the speakers. The panelists were Stephanie Griffiths, Lead Portfolio Manager for Mackenzie Ivy Enterprise Fund, and Craig MacAdam, Portfolio Manager with the Aurion Capital equity team. Both were frank and concise in their answers, and while much of the information they provided was fairly intuitive, I did find some of their comments surprising and interesting.A lot of the discussion centered around the ways in which the panelists access information regarding the companies they invest and seek to invest in, and how IRO’s can assist in keeping them informed. Some of the things I expected to hear included financial statements and disclosure documents; however, one panelist also reads every annual report cover to cover, noting that occasionally one may find very relevant information important to a buying decision buried deep within a report. In an era of need for greater transparency, it was reassuring to hear it said that the more rules & regulations surrounding the disclosure of information, the better!
Access to management and senior executives is obviously most helpful. Some of the other tools that they find particularly useful include investor days, where they are able to get a sense of a company’s culture through speaking in-person with management, and get a chance to see a hands-on demonstration of the product or service they provide. Packaged information on a company website, including company presentations, are particularly helpful in advance of such events as they provide the opportunity to prepare questions that aren’t covered in other material made available.
Some of the efforts that may not be so useful industry sponsored broker conferences, and the four to five hundred emails per day that contain information that they already receive from other sources.
And finally, what role does social media play in keeping them informed? One panelist confirmed that a vast amount of key information is getting pushed through social media, and sees it as the communication way of the future. The other panelist uses blogs often to find out real information about companies; competitive pressures, the way they and their products/services are regarded in the industry, finding out the right questions to ask, etc.
This makes a lot of sense of course; when I think about making a major purchase or contracting a service personally, I simply put out the word to my contacts to ask for advice, input and any information I can, and what I gain from these conversations always factors largely into my buying decisions.
These conversations are taking place constantly, in real time, on the web through Twitter, Friendfeed and various other social media channels. It is critical for companies to take part in those discussions. That this was confirmed at the luncheon yesterday wasn’t rocket science social media is shaping the buy-side’s decisions and its day is coming
Related posts:
- CIRI Ontario Seminar – Using Advanced Technologies Effectively
- From NIRI 2009 – The Evolution of Financial Communication
- Rivel Research: Transparency Key Factor in Buy-side Definition of Superb IR
- IR Best Practice: Get to know the Buy-Side
- Twitter is Changing the Face of Communication
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