Co-authored with Elena Biletskaya, EQS group, Moscow
ARFI (the Russian Investor Relations Society) most recently held an event in Moscow discussing Asia’s investment landscape and its attractiveness for Russian issuers. The discussion on this topic is timely given the recent wave of investment outflows from the market as well as sanctions imposed on a number of companies with government as a shareholder. A number of speakers from the companies side shared their thoughts, comments and case studies about their approach to Investor Relations in Asia. While there was general agreement about the scale of the opportunity, there are a number of considerations worth taking note of.
1- Although changing, Institutional investment investment mandates of Asian investors are broadly biased towards domestic opportunities. There is evidence of the investment market quickly evolving (developments ranging from global AUMs perspectives, to infrastructure/trading landscape, to reforms in pension funds).
2- Retail investors who play a large part in the market are interested in names and brands they can easily relate and identify with, an element worth considering in any future listing discussions.
3- Cultural differences often mean that Asian approach to investing is a longer game which requires commitment and a permanent place in the IR calendar.
From our experience, Investors in Asia expect same (if not higher) level of disclosure and excellence in communication as investors in Europe or US. They are diligent and opportunistic investors who see investing in EMs an important theme for this decade.
For us, the IR teams in Russia- It is certainly long game worth playing. As always we believe technology and digital tools can play a big role in supporting our efforts.