New interest in Chinese and German investment
28 January 2016 New York
Image: Shutterstock
China and Germany have skipped up the ranks as strategic sources of new investment over the next five years, according to BNY Mellon’s annual investor relations survey.
When asked which countries were likely to have the most strategic importance over the next five years, the US and the UK remained at the top, with 91 percent and 76 percent noting them, respectively. China jumped from fifth place in 2013 to third, with 50 percent citing it as a source of opportunity.
Germany moved from seventh place to fourth, with 45 percent identifying it as a source of opportunity, meaning it overtook both Singapore and Japan, which came in in fifth and sixth place, respectively, compared to third and fourth in 2013.
The top two issues affecting global market confidence remained unchanged, with systematic market risk and political risk emerging again as the most common concerns.
Concern around new regulatory environments was less prominent, dropping from the third-biggest issue in 2013, to the fifth in 2015. Instead, currency exchange rates were the third most-cited concern, jumping up from eighth in 2013.
The most common goal for investor relations programme was to expand or improve engagement with existing shareholders, identified by 46 percent of respondents, however in 2013 this was cited as a goal by 54 percent.
Increasing international shareholder ownership was highlighted as a goal for 37 percent, compared to 45 percent in 2013, while improved disclosure and diversifying the shareholder base both emerged as goals for 33 percent.
The report also found that companies are increasing their outreach to sovereign wealth funds, with 65 percent engaging with them compared to 57 percent in 2013.
The number of companies reaching out to socially responsible investors also increased from 26 percent in 2013 to 30 percent in 2015. The reasons cited by those engaging with these investors included targeting long-term investors, and to diversify their shareholder base.
Guy Gresham, head of the global investor relations advisory team in BNY Mellon’s depository receipts group, said: “Global issuers recognise the importance of maintaining an active, engaged investor relations program.”
He added: “In developing this survey, we’ve focused on helping companies identify best practices in investor relations by providing actionable benchmarks. Whether it’s meeting the evolving needs of long-term stakeholders or enhancing disclosure, new opportunities are always emerging for global firms to demonstrate leadership.”
The report is based on results from 550 respondents across 54 countries and spanning a range of market cap and industries, including financial, industrial, consumer, technology and healthcare sectors.
When asked which countries were likely to have the most strategic importance over the next five years, the US and the UK remained at the top, with 91 percent and 76 percent noting them, respectively. China jumped from fifth place in 2013 to third, with 50 percent citing it as a source of opportunity.
Germany moved from seventh place to fourth, with 45 percent identifying it as a source of opportunity, meaning it overtook both Singapore and Japan, which came in in fifth and sixth place, respectively, compared to third and fourth in 2013.
The top two issues affecting global market confidence remained unchanged, with systematic market risk and political risk emerging again as the most common concerns.
Concern around new regulatory environments was less prominent, dropping from the third-biggest issue in 2013, to the fifth in 2015. Instead, currency exchange rates were the third most-cited concern, jumping up from eighth in 2013.
The most common goal for investor relations programme was to expand or improve engagement with existing shareholders, identified by 46 percent of respondents, however in 2013 this was cited as a goal by 54 percent.
Increasing international shareholder ownership was highlighted as a goal for 37 percent, compared to 45 percent in 2013, while improved disclosure and diversifying the shareholder base both emerged as goals for 33 percent.
The report also found that companies are increasing their outreach to sovereign wealth funds, with 65 percent engaging with them compared to 57 percent in 2013.
The number of companies reaching out to socially responsible investors also increased from 26 percent in 2013 to 30 percent in 2015. The reasons cited by those engaging with these investors included targeting long-term investors, and to diversify their shareholder base.
Guy Gresham, head of the global investor relations advisory team in BNY Mellon’s depository receipts group, said: “Global issuers recognise the importance of maintaining an active, engaged investor relations program.”
He added: “In developing this survey, we’ve focused on helping companies identify best practices in investor relations by providing actionable benchmarks. Whether it’s meeting the evolving needs of long-term stakeholders or enhancing disclosure, new opportunities are always emerging for global firms to demonstrate leadership.”
The report is based on results from 550 respondents across 54 countries and spanning a range of market cap and industries, including financial, industrial, consumer, technology and healthcare sectors.
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