Research from financial communications experts Citigate Dewe Rogerson (CDR) reveals a rise in the popularity of capital markets events as companies seek to differentiate themselves in a post-Mifid II environment.
Speaking to IR Magazine in advance of the release of the results from its latest annual IR survey, Sandra Novakov, head of IR at CDR, observes: ‘With continued decline in sell-side research and increasing broker disintermediation accelerated by the introduction of Mifid II in January this year, companies are taking more direct responsibility for investor education. Our survey results suggest companies are allocating more of their budgets to group events and we expect to see increasing activity around events such as capital markets days.’
Although capital markets days have historically been an event most frequently hosted by large-cap companies, CDR’s 10th annual IR survey – due to be published this month – shows that small and mid-cap firms are increasingly recognizing the value of such events.
Highlights from the research include the finding that 28 percent of CDR’s survey respondents plan to increase the number of capital markets days or other group events they hold over the coming year. This trend appears largely driven by European companies, 38 percent of which are planning more events in the next 12 months. Breaking down the results by sector, healthcare companies remain the most frequent hosts of group events, with 60 percent saying they plan to make more use of capital markets days in future.
Speaking about capital markets days as a tool, Kate Bundy, head of events and roadshows at CDR, comments: ‘In addition to enhancing their websites and information materials, one of the most effective ways [for firms to] educate the market regarding the corporate strategy is through company-hosted events. Capital markets days and smaller or virtual group events provide an opportunity for companies to increase the level of understanding of their business as a whole, address any misconceptions, showcase relevant assets and allow investors to meet operational management.
‘In addition to Mifid II, the continued rise in investor activism has contributed to an increased focus on investor education and direct engagement with shareholders. Although we presently see just over a fifth of companies holding annual capital markets days, given the greater resources being dedicated to company-hosted events, we expect the frequency of such events to increase in the future.’
