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Individual investors

Individual investors. Communication challenges. Agenda . Who are they? Why do they matter? How can you communicate with them? . Who are they? . individual investors, From day traders to trend investors via swing voting retail brokers who act at the direction of these individuals,

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Individual investors

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Presentation Transcript

  1. Individual investors Communication challenges

  2. Agenda • Who are they? • Why do they matter? • How can you communicate with them?

  3. Who are they? • individual investors, • From day traders to trend investors via swing voting • retail brokers • who act at the direction of these individuals, • managed accounts • account manager makes the buy and sell decisions • investment clubs • pooling money to make investments

  4. Retail brokers - UK

  5. Retail brokers US • 8 major firms - 24000 locations - 150,000 individual brokers • Major consolidation underway

  6. Where do they invest? “Wealthier, more experienced investors enjoy an informational advantage and, thus, are more likely to invest overseas and experience good portfolio performance. Other investors use foreign securities for speculation or to improve upon poor domestic portfolio performance.

  7. Some statistics… • 90 million Americans in 50 million households own stock (source ICI) • 36.8% of Hong Kong adults traded investment products. • 49% of US companies’ stock owned by retail investors… • But only 15% of UK companies’..

  8. Why do they matter • Honda Targets Individual Investors: • reduces lot size • adding online voting • giving perks Eurotunnel saved by investors Such an outcome appeared unlikely last year after creditors backed out of a rescue deal and brought legal action against the company. But Eurotunnel prevailed after launching a multimillion pound advertising campaign to get out the French shareholder vote.

  9. Communications • Changing rules: • Electronic communications as compliance • OBO/ NOBO • Mandatory web posting • Changing practices A war on complexity

  10. Communications tools – the basics • Company’s website • Annual report • (E)mail • The media – threat and opportunity

  11. Key channels for different audiences PRESS RELEASE TV, Radio, Newspapers Key financial websites, Chat rooms, search engines Trading systems … Individual investors: Day traders, trend investors Investor conferences – NAIC etc Company Squawk box Retail brokers Financial news services Reuters, Bloomberg etc. Specialist professional systems Eg FactSet, Factiva etc Managed accounts

  12. Conclusion • Retail investors are a key asset for the company ….and a potent threat • Regular communication is the key • No single channel is sufficient, a multi layer approach is best

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