THOMSON REUTERS PRESENTATION TEMPLATE

Report
MICEX CONFERENCE
Russia Reboot – trends in Investor Relations and the war for Capital
Alex Menage
Head of Business Development, Corporate Services,
Rapidly Developing Economies
AGENDA
• IR Best Practices – the sell and buy side view
• How to measure IR Performance?
• Capital Markets trends and Fund Flows
• Russia on the rise and the use of IR in the War for Capital
• Investor Relations Solutions Overview
WHAT IS INVESTOR RELATIONS?
Good investor relations is about building trust, improving knowledge,
driving transparency
Buy-Side
Sell-Side
• Effective communication of
investment story
• Sell-side overage
• Understanding strategy
• Clarity of guidance
• Increase in ownership
• Dispersion of consensus
• Shareholder mix: geographic, type of
investor
• Participation at conferences
• Concentration of investors
• Effective communication of story
• Effective analyst day
Other stakeholders
• Provide market view to management
and employees
• Key metrics on sustainability and
governance
33
BEST PRACTICES IN
INVESTOR RELATIONS
• In the annual Pan-European Extel Survey, top European companies
for IR in 2007-2011 outperformed their peers on average by 24%
• What are the Europe All Stars doing better?
– More aware of key trends - sustainability, divisional directors
access and using social media
– Put more executive time into meeting prospective and former
investors
– Take the market pulse regularly by getting feedback on IR
program
– Don’t spend more money; but spend more wisely on investor
days and less on AGMs
– Receive bonuses at a higher proportion of salary
44
WHAT DO THE BUY- & SELL-SIDE VALUE?
Most Valued IR Attributes
“The most important thing
for investor relations is
being available, answering
the phone.”
Buy-side Analyst
“When I shoot a quick email to
an IR team, I like when they get
back to me right away with an
answer. I don’t like when you
have to set up a time to call
three days in advance.”
Security Analyst, Sell-Side
Firm
5
ATTRACTING SELL SIDE COVERAGE
• Make it as easy as possible
for analysts
– Historical financials in
spreadsheets
– Provide consistent KPI’s
• Provide additional information
about the company
– Divisional descriptions
– Management videos
– Investor factbook
• Start a dialogue with analysts
– Provide additional sector “colour”
– Boutique houses
6
TECHNOLOGY IN INVESTOR RELATIONS
• Technology to
enhance
communication
• IR websites
and webcasts
of earnings
calls are the
minimum
• Social media
growing rapidly
• Twitter most
commonly used
• Mobile tools
for investor
relations
7
AGENDA
• IR Best Practices – the sell and buy side view
• How to measure IR Performance?
• Capital Markets trends and Fund Flows
• Russia on the rise and the use of IR in the War for Capital
• Investor Relations Solutions Overview
HOW IROS MEASURE THEIR PERFORMANCE
“The share price is important, it’s only one of the KPIs…It’s effective communication
with investors, reliability of guidance, transparency, effective disclosure in terms of
having a good analyst or investor presentation and managing the earnings release.”
European Large Cap Financial IRO
9
HOW IROS MEASURE THEIR PERFORMANCE
Mega Cap
Large Cap
“One of the key things is whether or not
we are communicating our messages
well. Are the messages resonating with
the sell-side and buy-side? Are they
buying more stock or selling? We also
conduct perception studies.”
“We measure our performance with
benchmarks and rankings from the EXTEL
Survey including number of meetings with
existing investors, prospects, those who are
underweight our shares and also we create
target parameters with shareholder ID.
Consumer Goods IRO, US
Technology IRO, Germany
Mid Cap
Small Cap
“We get a variety of feedback from
investors we meet with on one-on-ones &
during non-deal road shows throughout
the year. Then, we use that info to set
goals for the following year, for anything
that could be improved globally, in terms
of IR at company level.”
“Certainly part of it has to do with
intelligence, meaning that my relationships
both with Thomson Reuters and with the
individual trading desks, being able to get
answers in a very quick and efficient way to
investors”
Biotech IRO, U.S.
Industrial Goods IRO, Europe
10
AGENDA
• IR Best Practices – the sell and buy side view
• How to measure IR Performance?
• Capital Markets trends and Fund Flows
• Russia on the rise and the use of IR in the War for Capital
• Investor Relations Solutions Overview
MACRO DRIVEN MARKETS / HIGH
CORRELATION
 Currently markets driven by
broad, powerful factors
CBOE VIX
 Correlation between stocks
has risen rapidly over the
past decade
50
 Individual company share
prices are increasingly
driven by the market as a
whole
20
Feb-12
Mar-12
Apr-12
Feb-12
Mar-12
Apr-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
10
EuroStoxx 12m Implied Correlation
1.0
0.8
0.6
0.4
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
0.2
May-11
 Stock-specific factors less
important during periods of
heightened investor fear
30
Apr-11
 In second half of 2011 there
were six days when 490
members of S&P500
moved in the same
direction (this has only ever
happened 11 times)
40
12
RECENT FUND FLOWS
 In 2011, $67 billion was withdrawn from actively managed mutual funds,
while ETF’s enjoyed $50 billion inflows
 Markets have not favoured stock picking approach – only 30% of US equity
funds beat their benchmark in 2011 (after fees), 34% of UK funds
40
Fund Flow (Eurbn)
20
14
19
19
13
11
11
10
7
4
2
0
2
2
11
-20
18
21
26
30
4
8
18
15
23
36
-40
-60
ETFs & Index Tracking
Funds
-80
Active M utual Funds
78
-100
May 11
Jun 11
Jul 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11
Jan 12
Feb 12
Mar 12
Apr 12
13
1Q12 LIPPER FUND FLOWS
 For the third consecutive quarter, there was inflows into actively managed emerging
markets focused equity funds (+$21bn) and outflows from actively managed US focused
funds (-$79bn).
 As in 2011, there continues to be steady inflows into Income and Dividend orientated
mutual funds, with Vanguard's Dividend Growth and M & G’s Global Dividend funds
achieving net quarterly inflows of $1.8bn and $1.3bn respectively.
Flows by Regional Investment Focus1
80,000
US
UK
Asia Pac. Emerg. Mkts West. Europe Global
60,000
7%
40,000
4%
20,000
($m) 0
0%
0%
1%
6%
-40,000
0%
1%
1%
-20,000
2%
5%
-60,000
Quarter
-80,000
Year
2%
14
1Q12 LIPPER FUND FLOWS
 On a sector basis, consumer cyclical stocks saw new inflow in 1Q12 as well as slight
upticks for financial stocks, many of which rebounded in Q1.
 Utilities focused funds saw largest redemptions, adding to continued redemptions over
the past year.
Flows to Sector Specific Funds 2
6,000
Financ. Basic Ind CYC Cons Inf o Tech Nat Res Non Cyc Health
Telco
Utilities
4,000
2,000
($m) 0
-2,000
0
10%
0% 1%
6% 2% 1%
2%
4% 4%
0%
10%
4%
Quarter
Year
23%
5%
8%
-4,000
4%
9%
-6,000
15
TOP TEN EMERGING MARKETS FUNDS
BY EUM
 Looking at the largest emerging markets funds by assets under
management, quantitative Value investor Dimensional Fund Advisors, LP
added significant money to its emerging market funds, as well as Londonbased T. Rowe Price.
Top 10 Emerg. Markets Funds by EUM
Rank Name
1 Emerging Markets Growth Fund
Fund Flow ($m)
Team Managed
John R. Reinsberg
EUM (Active)
14,432
13,046
Quarter
-554
198
Year
-777
-493
2
Lazard Emerg. Markets Equity Portfolio
3
American Funds New World
Team Managed
12,189
-183
-1,142
4
Oppenheimer Developing Markets
Justin Leverenz
11,115
208
-158
5
Skagen Kon-Tiki
Kristoffer Stensrud
8,117
434
493
6
DFA Emerg. Markets Core Equity Portfolio
Team Managed
7,570
1,239
2,969
7
T Rowe Price Emerg. Markets Stock
Gonzalo Pangaro
6,454
151
1,342
8
Aberdeen Global - Emerg. Markets Equity
Team Managed
6,352
651
1,347
9
GMO Emerg. Markets
Arjun Divecha
4,961
-75
-437
Scott Crawshaw
3,927
-68
12
10
Russell IC Emerg. Markets Equity
16
TOP TEN EMERGING MARKETS FUNDS BY
FUND FLOW
 London-based Aberdeen Asset Management captured significant inflow in
1Q12, taking the top managed actively managed spot as well as 8th rank
overall.
 New York City based Vontobel Asset Management, Inc. ranks third this
quarter with it’s Virtus Emerging Markets Opportunities Fund.
Top 10 Emerg. Markets Equity Funds by Inflow
Rank Name
1 DFA Emerg. Markets Core Equity Portfolio
Fund Flow ($m)
2
Aberdeen Global - Emerg. Markets Equity
Fund Manager
Team Managed
Team Managed
EUM(Active)
7,570
6,352
Quarter
1,239
651
Year
2,969
1,347
3
Virtus Emerg. Markets Opportunities
Team Managed
2,918
566
1,589
4
Skagen Kon-Tiki
Kristoffer Stensrud
8,117
434
493
5
First State Global Emerg. Markets Leaders
Asante & Finegan
3,882
405
1,018
6
Wells Fargo Emerg. Markets Equity
Jerry Zhang
473
271
451
7
Quoniam Fd Selection - EM Eq. MinRisk
Quoniam Team
433
260
385
8
Aberdeen Global - Emerg. Markets Smaller Cos
Team Managed
927
234
228
9
Oppenheimer Developing Markets
Justin Leverenz
11,115
208
-158
10 Lazard Emerg. Markets Equity Portfolio
John R. Reinsberg
13,046
198
-493
17
AGENDA
• IR Best Practices – the sell and buy side view
• How to measure IR Performance?
• Capital Markets trends and Fund Flows
• Russia on the rise and the use of IR in the War for Capital
• Investor Relations Solutions Overview
THE FUTURE LOOKS BRIGHT FOR RUSSIA
• It is all about Perception
• Privatization plan
• Moscow TOP 10 Financial Center by 2020
• Sporting events
• New and improved regulations – New CSD law affecting
shareholdings disclosure:

Talk to your advisers

Understand the Corporate Governance and Capital Markets impact

Be aware and prepared for the implementation and developments
19
THE WAR FOR CAPITAL
• IR is all about building trust, knowledge and
transparency
• Align IR targets & activities with business
objectives
• Stay in tune with latest investor concerns
• Be responsive to analyst and investor requests
• Use technology effectively to broaden reach
• Effective IR will create value over the long term
20
AGENDA
• IR Best Practices – the sell and buy side view
• How to measure IR Performance?
• Capital Markets trends and Fund Flows
• Russia on the rise and the use of IR in the War for Capital
• Investor Relations Solutions Overview
SCOPE OF THOMSON REUTERS
INVESTOR RELATIONS OFFERING
Thomson ONE
Investor Relations
Advisory Services
Communication Services
Ownership and Contacts
Shareholder Identification
Hugin InPublic
Regulatory release publishing
Research
Investor Targeting Solutions
Webcasting
Thomson ONE Mobile
Stock Insight Report
IR Websites
Marketboard Pro for iPad
Extel Survey Results
Interactive Documents
22
THANK YOU - Q&A
CONTENTS
• Overview of Thomson ONE Investor Relations
• Overview of Advisory Services
• Overview of IR Communications Solutions
24
ANTICIPATE INVESTOR BEHAVIOUR,
IDENTIFY RISKS AND OPPORTUNITIES
• Detailed public ownership
data
• Private ownership data
from your Shareholder
Analysis
• Firms and funds records
• Over 145,000 contacts
• Bulls, bears, rotators and
activists
• Thomson Reuters iSignal
• Thomson Reuters Smart
Targets
25
MEASURE THE IMPACT OF YOUR
INVESTOR MANAGEMENT PROGRAM
• Monitor changes in
investor holdings
• View your webcast
activity
• Monitor your IR
website traffic
26
STAY CONNECTED ON THE ROAD WITH
THOMSON ONE MOBILE FOR IR
Use your Blackberry
to access contact
information,
ownership positions
and events in your
Thomson ONE IR
Contact Management
System
27
KEEP YOUR FINGERS ON THE PULSE
WITH MARKETBOARD IPAD APP
• News
• Real-time
research
• Portfolios and
watchlists
• Market data
• Events
• Firms, Funds
and Contacts
• Investor
profiles
28
CONTENTS
• Introducing Thomson Reuters Investor Relations
Solutions
• Overview of Thomson ONE Investor Relations
• Overview of Advisory Services
• Overview of IR Communications Solutions
29
THOMSON REUTERS
ADVISORY SERVICES
Actionable insight to support your strategic investor management program
Shareholder Analysis
• Understand who is buying and selling your
company’s financial securities; and why
Investor Targeting Solutions
• Identify prospective investors and prioritize
your outreach efforts
Stock Insight Report
• Understand what is happening in capital
markets and the impact on your shares
Extel Survey Results
• Benchmark your IR performance against
peers and understand best practice
30
SHAREHOLDER ANALYSIS:
IDENTIFY YOUR MOST IMPORTANT
INSTITUTIONAL INVESTORS
Accurately identify your investors at both the firm and fund level:
• Understand your shareholder
composition
• Understand who is buying and selling
your stock and why
• Prioritise management time with
investors
• Identify new sources of capital
• Identify unusual trading activities
• Plan for AGM, roadshows or Capital
Markets Days
• Measure the impact of your IR efforts
31
SHAREHOLDER ANALYSIS:
THOMSON REUTERS DELIVERS UNIQUE
VALUE TO THE ID PROCESS
QUALITY
CONTEXT
INTEGRATION
Reliable information
Broad market perspective
Integrated suite of tools
• Established network of
contacts
• Dedicated and experienced
analysts
• Benchmark your
shareholder profile against
the largest set of private
global ownership data
• Desktop – view real-time
shareholder positions in
Thomson ONE Investor
Relations
• Specialised teams – sector
and regional focus
• Leverage unique sector
insight
• Mobile – access your
shareholder information
anywhere
• Quality controls – systematic • Proprietary tools –
quantitative targeting and
cross-checking
risk models, mutual fund
• Global systems
flows, stock trading by
• Transparency – source
platform
disclosed for each position
• Qualitative insights –
understanding the ‘why’ not
just the ‘what’
• Contact Management
System – measure the
impact of your outreach with
integrated reporting
• Investor profiles – include
your private ownership
trends
32
INVESTOR TARGETING SOLUTIONS:
ATTRACT AND RETAIN LONG-TERM
QUALITY INVESTORS
Available as either an Investor Targeting Project or an annual Targeting Program,
use our investor targeting solutions to:
• Understand investment drivers
• Prioritise buying opportunities and
anticipate selling risk
• Effectively allocate management time
with investors
• Determine which regions and financial
centres you should be visiting
• Tailor your message for each targeted
investor
• Supplement broker recommendations
with unbiased and qualitative insight
• Measure the impact of your outreach
efforts
• Maximise the return on all investorfocused events you attend
33
INVESTOR TARGETING SOLUTIONS:
THOMSON REUTERS DELIVERS UNIQUE
VALUE TO THE TARGETING PROCESS
INFORMATION
INSIGHT
KNOWLEDGE
Proprietary tools and
analytics
Insight into buy-side
decision making
• Our analysts access the
same information that drives
institutional investment
decisions including:
• As the leading information
• With 1,500 advisory clients
provider to the buy and sellacross all major industries
side, we have a unique
and regions, we can provide
understanding of what
you with the insight you
investors are looking for
need to stay ahead of
emerging sector and peer
• Our analysts are in constant
trends
contact with the investment
– Smart Targets
– Public and aggregated private
ownership data
– Benchmark data from Extel
– Thomson Reuters
fundamentals
– StarMine quantitative models
– First Call research and
estimates
community to monitor the
factors driving trading
decisions
In-depth knowledge of your
industry
• We have a global team of
experienced targeting
specialists
34
CONTENTS
• Introducing Thomson Reuters Investor Relations
Solutions
• Overview of Thomson ONE Investor Relations
• Overview of Advisory Services
• Overview of IR Communications Solutions
35
INPUBLIC REGULATORY RELEASE
DISTRIBUTION:
TAKE CONTROL OF YOUR DISCLOSURE
• Reach your target
audiences cost effectively
with full control over your
release creation and
distribution
• Easy to use interface create and format your
press releases, manage
your internal approval
process and distribute your
release when you’re ready
– 24 X 7
36
WEBCASTING FOR INVESTOR RELATIONS:
DISCLOSE. ENGAGE. MEASURE.
• Disclose to more than
50,000 institutional and
millions of retail investors
through our proprietary
distribution network
• Engage a global audience
with synchronised slides and
interactive features
• Webcast in multiple
languages
• Measure the impact of your
communications with detailed
post-event reports
37
INVESTOR RELATIONS WEBSITES:
CREATE A POWERFUL IR WEB PRESENCE
FOR YOUR COMPANY
• Apply best practices we have
gathered directly from the buyside to turn your IR website into
the go-to-resource for investors
• Analyze traffic to your site and
know which information is being
downloaded from a single
dashboard in Thomson ONE
Investor Relations.
• Reduce the time and money
your IR team spends developing
and maintaining your website
• Remove your reliance on scarce
internal IT resources
• Attract investors from multiple
regions by posting information in
local languages
38

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