IR in the Investment Management Context

What are the differences between active and passive investing and how does this impact the IR function?

One major trend in investment management is the shift from active to passive investing. Active investing involves trying to outperform a particular benchmark or index by identifying and picking opportunities, whereas passive investing involves mimicking a benchmark or index and holding onto investments for the long term. Passive investing has become more popular in recent years due to its lower costs and risks.

What is the impact of increasing ESG investing on the IR function of companies?

Another trend that is gaining importance is the focus on ESG (environmental, social, and governance) factors. Investors are increasingly using ESG criteria as part of their analysis to identify material risks and growth opportunities. Companies need to consider how to design, execute, and communicate an ESG strategy that is appropriate for their business and creates value for investors and other stakeholders.

How is the rising shareholder activism impacting IR teams of companies?

Shareholder activism is also on the rise, with investors taking a more active role in challenging companies on issues such as executive pay and corporate governance. IR professionals need to be prepared to engage with activist investors and respond to their concerns in a constructive and transparent manner.

How will AI, ML and big data impact the investment management industry and the IR function of firms?

The use of artificial intelligence, machine learning, and big data in investment strategies is also a growing trend. These technologies can help investment managers to identify opportunities and make more informed investment decisions. However, they also raise ethical and regulatory concerns that need to be addressed.

How should the IR function handle retail investors?

While institutional investors have traditionally been the primary focus of IR, the rise of retail investing has led to an increased need for IR professionals to communicate with and provide information to individual investors.