Investors lack non-US corporate access

Investors lack non-US corporate access

  • Export:
Many North American investors do not have adequate corporate access to international companies. This is limiting opportunities for international companies among US investors, according to new research by BNY Mellon.

The research shows that companies outside the US need to refine their targeting and balance how they serve existing shareholders with the most effective ways to engage new investors.

Over three-quarters of study respondents said that they face limitations in obtaining access to non-North American companies. This is most pronounced with investors from secondary investment cities, where 87% claim to face some limitations in gaining access to non-North American companies versus only 69% in primary centres.

Some 43% of investors rate their current level of corporate access to non-North American companies as average or poor, driven mostly by dissatisfaction from investors located in secondary investment centres.

A majority of study respondents (60%) assert that lack of corporate access eliminates a non-North American company from their investment universe.

Over half of study respondents agree that more points of contact during the year (whether via one-on-one meetings, conferences, or roadshows) is the best way for non-North American issuers to improve the quality of their corporate access.

Over a quarter of investors have decreased the number of investor meetings facilitated by the brokerage community – with the mean percentage of meetings facilitated by brokers at 68%.

Before initiating a position in a non-North American company, 72% of investors require at least one meeting with senior management in order to establish confidence in the team and gain a detailed understanding of the company story and strategy.

Once invested, study respondents require one meeting per year (although they prefer two) to keep up-to-date on the company’s strategy and operations.

A majority of study respondents agree that operational heads of non-North American companies should be more visible to investors, because their technical knowledge and unique perspectives provide additional invaluable insight to the investment community.

  • Export:

Related Articles