New Trends In Investor Services

The term “investor relations” is more than just a buzz phrase that gets bandied about in corporate circles – and it isn’t just about making use of an excellent transfer agent. In fact, many companies understand the importance of committing time and money to setting up investor relations departments to keep the lines of communication flowing between themselves and shareholders. A strong investor base is the backbone of any company - good investor services will ensure your business keeps a positive stronghold on the investor population.

What are the main strategies of effective investor relations?

An investor relations policy is a good place to start as it is a valuable tool for arranging how a company intends to deal with investors. A clear policy will keep the system organized. It should include a spokesperson system, a model for dealing with negative information, a set-up to handle investor feedback, a structure that connects shareholders to the board of directors, and routines for disclosing financial and other information.

Next, you must know your principal investors. Conducting a thorough analysis of the makeup of your investor population will help your company understand the specific needs of its investors and serve to keep investor relations up to par.

Create channels of communication that send accurate information to investors in an efficient manner. Different types of communication can be used to accommodate different levels of investors so that everyone receives relevant information.

Keep in mind that in addition to financial information, shareholders desire access to information regarding intangible assets. Reports detailing the non-financial performance of your company are just as necessary to have readily available as the hard numbers.

Provide adequate resources to keep the investor relations segment of your company humming. If you’re going to create an IR department, go forward full force and budget both personnel and dollars so that you can offer high-quality services to your investors.

It’s also crucial to employ the services of a good transfer agent. As the organization that handles a large chunk of the interactions between a company and its investors, a transfer agent holds the loyalty of your investors in its hands. Hire a dependable transfer agent and your shareholders are more likely to be happy campers.

Communication is Key

As mentioned above, communicating with your investor base is vital if you want to maintain good investor relations. Specifically, there are several new ways to keep the lines of communication open.

Corporate website: A website allows for direct communication with your investors, especially if your company implements a separate “investor relations” section catering specifically to the investor population.

Online streaming: For the many investors who cannot attend stockholders’ meetings and conferences, webcasting the meetings over the Internet lets every investor receive the appropriate information.

Interactive options: Corporate documents, such as annual reports, tend to be very large. Many companies have chosen to post the information using an interactive interface instead of requiring investors to download the files.

Email: Companies that take advantage of email save time and money sending out externally disclosed information over the Internet.

Many factors contribute to good investor relations - a reliable transfer agent, proper communication, accurate knowledge of your investor base, and the ability to provide information, financial and otherwise, to your shareholders all work to keep investors content.