Investor Meeting Space in London

We are delighted to announce that all of Closir’s network now have access to meeting spaces in London which can be used for investor and analyst meetings as well as for hosting IR events by listed companies.

Closir was created to help investor relations teams to communicate their investment story to the maximum audience of investors. Our meeting spaces facilitate direct interactions between companies and investors.

Our facilities offer companies:

* Meeting rooms for small group meetings of up to 10 people
* A private lounge for group presentations of up to 25 people
* Larger event space accommodating up to 125 people
* Club restaurant dining

Current locations:

* London Mayfair
* London City
* London Canary Wharf

Interested in making a booking? Simply email


Handling Investor Relations during a Crisis: Lessons Learnt from the 2011 Egyptian Revolution

This is a guest post from Omar Darwazah, Director,  Investor Relations at OCI N.V.

It seems that the entire world is in a constant crisis today. From Argentina to Russia to Turkey to the United States, there has been no dearth of crisis management situations which investor relations (IR) professionals have had to face. Whether it be political upheavals, civil wars, border disputes, fiscal disasters, wild foreign exchange fluctuations, military coups, capital controls, crazy presidential candidates or deeply entrenched state-sponsored corruption, investor relations professionals globally are finding it more difficult to craft their respective companies’ equity theses and messages to the investment community without finding themselves having to discuss geopolitics and global socio-economic trends. In 2011, I was Director of Investor Relations at Orascom Construction Industries (OCI) in Cairo, Egypt. I found myself in the middle of a historic event; I faced a systemic crisis that plagued the entire country as well as the company, it would forevermore change Egypt and its investment landscape.

On January 25, 2011, I readied to attend an annual Bank of America Merrill Lynch investor conference like I had done in years past. I boarded an 8am flight from Cairo to London to kick-off to OCI’s investor relations program and prepared presentations to current shareholders and prospective investors. Upon my arrival in London five hours later, however, the Egypt I had always known – run by the ironclad dictatorship of Hosni Mubarak and the brutality of his state police – had changed forever. A revolution was in the making. Thousands of people took to the streets to peacefully demonstrate en-masse against the regime. While I conducted meetings with investors on January 26, the state police clashed with protestors, the demonstrations turned violent, and the Egyptian equity index crumbled. The investors I was to meet at the conference turned to me for unbiased, candid interpretations of events on the ground.

As the revolution unfolded, the company’s CEO entrusted me to continue meeting investors. For 3 weeks I operated in crisis management mode and conducted over 70 one-on-one on-site meetings in London, Dubai, New York, Boston, Chicago, Frankfurt, Zurich, Geneva, Amsterdam and The Hague. JPMorgan invited me to lead a conference call with investor relations directors from other Egyptian blue-chip companies to advise them on handling the crisis. There was no hand-in-glove approach to managing the situation but I did share the following observations with my colleagues:

  1. The challenge of speaking to investors throughout the Revolution was primarily exacerbated by the lack of visibility on the ensuing chain of events
  2. Communicating with senior management on the ground in Cairo proved to be difficult given the lack of internet or mobile phone access throughout the 18 days of the Revolution
  3. For a contemporaneous update, I relied on speaking to various team and family members as well as friends by landline in order to provide investors with candid advice on the situation
  4. The routine questions on the performance of the company were never even asked and investors turned to me for unbiased interpretations of the unfolding events
  5. I combined my in-depth knowledge of Egypt, undergraduate training in Political Science and Economics and oratory skills to field difficult questions and deter a crisis within the global investment community. Speaking on behalf of the company and its performance became secondary in importance

In hindsight, the mere fact that I was present outside of Egypt and able to travel and meet investors proved to be extremely valuable. While serendipitous, the lesson learnt during my experience was that irrespective of the gravity of the crisis at hand, it is pertinent for IR professionals and management to be readily available and present to meet with the investment community even if they have bad news to report to them. That year, I ended up conducting over 300 one-on-one meetings in 25 cities globally. Here are some key takeaways from my experience:

  1. Investors appreciate full transparency and candidness during periods of high market uncertainty
  2. As an IR professional, be ready to simulate various scenarios during one-on-one meetings with investors with subsequent potential risks and mitigants of these scenarios
  3. Be ready to discuss broad topics that are typically not addressed during routine investor meetings
  4. Exogenous factors affecting company performance in times of uncertainty should be quantified as much as possible (i.e. impact on earnings, days of business interruption etc.)
  5. During a crisis, liaise closely with senior management and provide key updates and feedback from the broader investment community including analysts and investors as this helps with internal risk management
  6. Keep an open line of communication with the market, be ready to conduct a significantly larger number of investor meetings and global roadshows
  7. Disseminate factual information in writing in official company documents (i.e. press releases and results presentations) but leave speculative discussions, political opinions and forward looking statements in conversation only
  8. The best line of defense in a period of high and consistently evolving uncertainly proved to be a good offense (i.e. an aggressive roadshow strategy and meeting schedule)

That year, OCI’s share price outperformed almost all blue-chip companies on the EGX30 declining 30% versus almost 50% for the EGX30. Moreover, my crisis management strategy was acknowledged by the Middle East Investor Relations Society (MEIRS). As voted by the global buy-side and sell-side community, I won the MEIRS “Best Investor Relations in Egypt” award that year. I will no doubt face other crises during my IR career, they might not carry the same severity and intensity of the Egyptian Revolution in 2011 (or maybe they will!) but I believe the aforementioned takeaways are valuable in a multitude of crisis contexts; remember candidacy first, always.

Is Tehran Stock Exchange Index truly representing the overall market behavior?

This is a common question asked multiple times by market practitioners and observers of Iran’s capital market. This is essentially due to the asymmetry readily witnessed by those who buy and sell stocks of companies listed on Tehran Stock Exchange (TSE).

Indeed, there are occasions when mixed signals are communicated by the All-Share Index if you happen to make professional investment decisions based on interpretations of the benchmark index.

For instance, you might see in one typical session of the exchange market that the gauge is in the red zone by about 300 or 400 points down but there are many sectors across different market boards that are experiencing gains rather than losses in price in spite of the general negative environment usually seen under such circumstances.

In one recent study performed by Armin Sadeghi Adl, Tehran Stock Exchange Company’s expert at Research Management Division, he underlined the fact that there is a meaningful diversion between two major indexes used to quantify the general behavior of the equity market namely, value weighted index—being constantly blamed for its shortcomings to illustrate the true performance of the market—and equal-weighted index, which was introduced just two years ago to the market activists and researchers.

As Mr. Adl explains about his research in his article, published by the well-reputed economic Daily, Donya-e-Eqtesad, he assures us that value-weighted Index or locally known as Overall Index does not genuinely illustrate the reality of the market since this measure is initially composed of weight of firms based on their market cap size, which is very misleading. This is because of the calculation measures employed to specify the influential companies on the Index.In In fact, the number of listed companies allowed to be included in this computation does not exceed 17 from 321 ones present in TSE. Additionally, their market cap goes beyond 50% which is in stark contrast to the 10%, belonging to  just 231 companies.

Thus, this is to say that TSE Index is impacted by small fraction of giant names. Consequently this is not a guiding element to those who adjust their investment decisions and strategies solely by such an indicator, according to Mr. Adl.

In the same vein, the equal-weighted index was introduced in 2014/15. From the time this measure first used till the first two months of current Persian Calendar, it showed a solid 33.5% growth.

Meanwhile the Overall Index registered 8.1% dip. In other words, unlike the down cycle perceived in the market throughout the period, there existed lucrative opportunities for those individuals to forego the false signals emitted by the Index and achieve acceptable and at times unexpected returns.

Statistically speaking, in the first quarter of the current Iranian year, while the Index went down by about 9.5% and the average return resulted by 17 big cap companies dropped by 10.2% (with a market cap of above 50%), there were 131 firms in the exchange market with positive returns.

It is noteworthy to say that small cap entities recorded 21% of stock trades in the same period which is a telling testimony to the claim that the market participants were ignorant of many other names in the market.

It is also good to know that many of the giants in the capital market of Iran are notoriously labeled as “index builder” as they they are the driving forces behind market downs or ups.

To shed more light on the matter, let’s take the largest  and smallest names present in TSE as an example for the sale of clarity.

Persian Gulf Petrochemical Company which enjoys 8.4% share of total market cap and Tehran Derakhshan Company with a meager 0.003% stake of the whole market are the largest and smallest  companies in Tehran Exchange Market. As it is self-revealing, we can understand the big difference a factor such as  market cap can exert on Overall Index swings.

This is why someone who is interested in investing in the exchange market of Iran should not allow themselves to get misled by following Index movements in either directions. Rather, interested individuals should enter the market with open eyes and ample knowledge of the dynamics and fundamentals of the market.

Moreover, when studying the first quarter performance of the TSE, what actually surfaces is that most investors were unluckily focused on surprisingly just 16 names out of 321 ones available for investment in the market, according the research finds by Mr. Adl. It was so much so that half of the value of trades were single-handedly won by the big names across the market.

Moreover, turnover ratio for most traded shares has a lot to tell us. According to Mr. Adl, half of these firms experienced more than 100% turnover ratio. In other words, their shares had changed hands at least once in the market during the period.

As a live example, we can name Saipa Investment Company, with minus 9.8% return in the period. This company had the highest  share turnover ratio among the list of 16  companies most favored by the market participants. Nevertheless, the average for this ratio was 99% among  big cap firms in the equity market.

Nonetheless, the aforementioned companies’ loss ranged from minus 3.3% to minus 43.9%. The average was minus 23.5% in the period, however.

All in all, it appears that although the Tehran Stock Exchange did not pass upbeat trading sessions on the whole in the last quarter, it is evident that there are big opportunities out there. Therefore, it is the investors themselves and not just the investment environment to point the finger of blame at for the low or negative returns realized.

P.S.: All tables are taken from Donye-e-Eqtesad, published 2 August,2016

This is a guest post written by Navid Kahlor, Freelance Contributor at Al-Monitor. The original can be found here.

Key takeaways from FundForum 2016

Earlier this week, over 2000 global investment and wealth managers came together at the annual Fund Forum in Berlin to discuss the main trends affecting the industry. Although the scope of the discussions was broad, there were a number of topics which were at the heart of many of the debates and conversations throughout the 3-day event.Here are our top 5: 

Robo-advisors and technology

Tom Brown, Global Head of Investment Management at KPMG, segmented the issue of technology and digital disruption in the asset management industry into three main areas: customer experience, operational efficiency and the use of technology to manage money.

Robo-advisors – online wealth management platforms that provide automated portfolio management advice without the use of human financial planners – are perhaps the industry’s best example of all three points rolled into one. While the technology is still relatively new, use of robo-advisors has been growing exponentially, especially amongst the younger generation, which today prefers to view and manage its pension savings using a mobile app rather than going into a bank branch.

A number of traditional asset managers have equity stakes in robo-advisory platforms, aiming to strike a balance between traditional and technology-based approaches under the umbrella of an established, credible brand name. Others argue that artificial intelligence and machine learning will eventually lead to the demise of the fund manager entirely, the argument being that machines can do what humans can do but better. Consumer behaviour will adapt to the new environment as it always has done when presented with innovative leaps forward such as self-service checkouts, online interactions and soon, driverless cars.


In October last year The Economist devoted their cover story to Blockchain: “The trust machine: how the technology behind bitcoin could change the world”. In simple terms Blockchain is a digital, trusted, public ledger that everyone can inspect, but which no single user controls. It keeps track of transactions continuously, for example ownership of a diamond, rare painting, or piece of land.

The asset management industry continues to debate the potential applications of this technology, which started out by powering Bitcoin. In a panel moderated by Lawrence Wintermeyer, CEO of Innovate Finance, ideas ranged from Blockchain’s applicability in areas such as post-trade environment, collateral and liquidity management, regulatory reporting, and the handling of know-your-client (KYC) and anti-money laundering (AML) data. In each instance success will require close collaboration amongst the various parties involved.

Brexit and Trump

Mohamed El-Erian, Chief Economic Advisor at Allianz, addressed some of the shifts that are giving rise to the anti-establishment movements seen in many developed countries today.

“The common element throughout all these things,” he explained, “is that the advanced world has lost the ability to grow in a fair and inclusive manner, and when that ability is lost and people lose confidence, things start going wrong.”

El-Erian stressed that global growth to unlikely to be consistent and stable any time soon, thus the risk of non-normal distribution of events affecting the markets is always an issue. Secondly, he highlighted central banks’ inability to rein in financial volatility, which remains as frequent and unpredictable as ever.

The discussion centred on the fact that investment managers should try to adopt new framework about how they think about risk, and acknowledge that market events in both developed and emerging markets no longer follow a normal distribution curve.

Is ‘data’ the new gold?

A number of panels focused on the industry’s ability to understand and utilise the unprecedented amounts of data that are generated by each one of us in the digital world.

“By 9 o’clock each morning we have already created more data than mankind created from the beginning of time to the year 2000” said Andreas Weigend, former Chief Science Officer at Amazon.

“Because of the signals you send through sensors, microphones, GPS, gyroscopes and cameras, your phone knows almost everything about you: where you are walking and even how you are walking – it probably knows more about you than know yourself”.

Crunching and refining data such as these enables the industry to improve and tailor its products a lot more to client needs.

Costs and Transparency

The new European MiFID rules are due to take effect in early 2018 and will require funds to give more information on costs in their fund factsheets.

EU and UK regulators are demanding fairer and more transparent fees from fund managers in a bid to ensure greater transparency and accountability to investor clients. As discussed in previous blogs, as part of this process they are also assessing which costs should be borne by the asset manager and which can be passed on to the end client through management fees and commissions.

The new regulatory environment is forcing asset managers to rethink a number of elements of the traditional business model, such as how they consume and pay for investment research.

With technological innovation comes regulatory oversight. Those able to react quickest to the dual challenges of new regulations and market unpredictability are most likely to succeed.

Conference website

Full agenda

MSCI says no to China

Last night, MSCI, the world’s largest indexing firm, announced that it will not be adding China’s A shares as constituents of its widely followed EM index.

It has also made a number of comments which were of interest to global emerging funds following Pakistan, Nigeria, Argentina and Saudi Arabia.

In summary:

1. For passive EM funds, the MSCI EM index is the most significant globally by far, with around $1.5 trillion of indexed investment. For active investors, any change in the weighting of the index (which they are benchmarked against) forces them to reassess the composition of their portfolios.

2. MSCI pointed to a number reasons behind their decision regarding China’s A share market, the main one perhaps being capital mobility. First and foremost, the monthly repatriation limit (the amount of his total capital the investor is able to withdraw from the market during one month) of 20% is considered too low, especially should the fund be faced with redemptions. The time-consuming and opaque process of receiving approval for a quota (allowing investors to invest in Chinese stocks) is also a factor. On top of this, the need for preapproval of financial products on foreign stock exchanges that are linked to A-share indices has not been yet addressed.

It is important to note that China is already the largest component of the MSCI EM Index, making up over 25% of the index. This is made of up of ADRs of Chinese companies listed in NY or Chinese shares quoted in Hong Kong. The domestic (A-share) stock market – the largest in the world after US – is not included in the index.

3. MSCI announced that Pakistan will be reclassified as an Emerging Market. Given its current account deficit and need for capital to drive steady growth, many observers agreed that Pakistan was the biggest winner from yesterday’s announcement.

4. Argentina will be reviewed for a potential upgrade. In December 2015, the Argentinian Central Bank abolished foreign exchange restrictions and significantly relaxed the capital controls that have been in place for a number of years. These changes have resulted in a floating currency, the elimination of cash reserves and monthly repatriation limits on the equity market, as well as a significant reduction in the capital lock-up period for investments.

5. Nigeria may be removed from MSCI’s Frontier Markets Index and reclassified as a stand-alone market due to capital mobility issues. This may even come as soon as November this year. Early last year its Central Bank pegged the local currency to the US dollar resulting in a sharp decline in liquidity on the foreign exchange market. Hence, the ability of international institutional investors to repatriate capital has been significantly impaired to the point where the investability of the Nigerian equity market is being questioned.

6. MSCI said that it welcomes the recent market enhancements announced in Saudi Arabia, which opened its market for the first time to foreign investors last summer. These include changes to the rules for qualified foreign investors, settlement cycle of listed securities, elimination of the cash prefunding requirement and the introduction of proper delivery versus payment. Many of these are on course to be implemented by mid-2017 and will bring the Saudi equity market closer to EM standards.

Sources: MSCI, FT, Natixis

New Feature Update: IR Event Pages

Summary: Investor Relation teams can now use event pages to share investor material during roadshows, capital market days and earnings. The built in email and RSVP system allows companies to manage invitations amongst its investors and analysts.

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Uses: IR event planning and execution

Available for: Investor Relations teams with a standard Closir subscription.

How does it work? Event pages help companies keep material organised ahead of any event involving investors and analysts. Companies can create an event page, upload relevant information and files and share or notify investors via the built in email system.

Information that investors are looking from companies prior to an IR roadshow:

  • Who is travelling and available for meetings
  • Updated version of the presentation
  • A simple way to request a meeting

Visibility: All event page have a public facing page that can be accessed using a secret PIN. Events pages are visible to both investors and company users part of the Closir community.

User quotes:During roadshows, dealing with simple things like sharing our investor material with the numerous parties can be quite time consuming. We use the event pages to keep most updated version of our presentation online and point our investors and brokers to download it from there”.

“When we travel to New York or London we use this feature to blast out a message about it to all of our investors. We then track (via the RSVP) system who is interested to see us. After that, we prioritise and create a 1-1 and group meeting schedule. We always try to have a group meeting at every roadshow to accommodate tier 2 and tier 3 investors”

New Feature Update: Consolidated IR Calendar

Summary: Investor Relation teams can now see broker events, industry earnings dates and IR events, both local and international in one view.

Uses: Event planning.

Available for: Investor Relations teams with a standard Closir subscription.

How does it work? Brokers conferences and IR events are visible under Conferences tab. Industry earnings dates are visible under Events tab. Both views are sortable by various categories. Furthermore, under the ‘Events’ tab users can create and save bespoke watchlists (e.g Oil & Gas Russia).

IR teams can also express interest or register for certain events using the right hand side menu bars. If a company selects ‘I am attending’, it will then export to the IR calendar. Selecting ‘I am interested’ in feature will send this request to respective organisers.

Visibility: Both companies and investors can see events on Conferences and Events pages.

User quotes: “Having all events, especially broker conferences, in one place is very helpful”

Closir team comment: We have heard from many IR teams that it would be useful to consolidate various events that are relevant to the everyday life of an IR team. In addition to just creating a list, we connected events to organisers who will receive requests about any companies interested in attending them. 

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