Over the past decade, the Israeli capital market has embraced the field of investor relations, in a similar manner to which is customary in the USA, and has turned it into one of the most important issues on the agendas of publicly traded companies. Nowadays, public companies allocate considerable resources to the maintenance and reinforcement of their relationships with investors and to do this, in most cases, they are assisted by companies which specialize in this field, who work together with the relevant executives in the organization.
As part of the activities in the field of investor relations, the companies operate in order to increase their transparency in the eyes of the investment community, their shareholders and bondholders, to maintain a proper and consistent relationship with their current investors and with potential investors, to whom they wish to be exposed. Furthermore, one of the most important goals in the field of investor relations activity is matching the expectations of investors to those of the public company, the reason for this is the smaller the expectations gap the closer the market value of the company is to its economic value.
In order to maximize the benefits of investor relations activities, our company implements organized methodologies that enable building of individual work plans for each client, and which provide tools to track the public company’s relationships with various types of investors: Insurance companies, provident funds, pension funds, trust funds, investment portfolio management companies, analysts, nostro investors, hedge funds, large private investors, etc.
Our firm is in constant contact with the investment community and with the relevant liaisons in the different organizations, and serves as the external entity that strengthens, maintains and enhances all aspects of the relationship with investors for our clients.
The activities in the field of investor relations include, inter alia:
- Setting up “one on one” meetings with current securities holders and with potential securities holders (to read more about meetings with investors – click here
- Initiating and organizing conferences for investors and investor tours (excursions to current relevant sites related to customers – industrial plants, real estate assets, local offices (branches), etc.) – to read more about investor conferences – click here. Also, to read more about investor tours – click here
- Tracking of institutional holdings of the company’s securities and analysis of the snap shot situation on an ongoing basis – to read more about tracking institutional holdings – click here
- Initiating conference calls with capital markets – to read more on conference calls – click here
- Drafting and distributing messages to investors (further to immediate reports, publication of financial statements and information on other significant events about which the public companies report
- Preparation and updating of investor presentations.
- Ongoing counsel to companies regarding marketing strategy and formulating messages for investors, initiating analytical reviews (buy side and sell side) – to read more about analytical reviews – click here
- Providing guidance during the capital and debt financing processes alongside financing bodies when necessary.
- Arrangements for general meetings.
- Opinion surveys regarding positioning of the company among investors, etc. – to read more about opinion surveys and positioning in the capital market – click here
Our company’s investor database contains over 1,500 investors, including decision makers in institutional entities, who to our estimation hold over 80% of the money invested in the Israeli capital market, and a host of private investment entities and hedge funds – a field that is gaining momentum and has increased involvement in the capital market in recent years.
Our company sees great value in the winning combination of activities in the fields of investor relations and public relations, because in the twenty-first century, where the media occupies an ever increasing share of the investors’ attention, great importance is also placed on the way in which the company is publicized and perceived in the media, and occasionally the media can be used to convey the Company’s messages to the investment community in an efficient and sophisticated manner.