A Framework for Investor Targeting

Investment profile of my company

The starting point of any investor targeting exercise is to build a solid understanding of how your company’s story can fit into criteria that global investors look for when screening for companies: liquidity, key fundamental metrics and non-financial highlights.

Things to consider:

  • Does my company’s liquidity, or average daily trading volume (ordinary shares and depositary receipts combined) meet institutional investor requirements? Minimum threshold for large institutional investors is on average $1million+ per day. Smaller funds or those focused on the mid-/small-cap segment of the market often have more flexibility, however also tend to have fewer resources and less support (corporate access, investment research) from brokers.
  • Compared to the regional and broader EM peer group, which set of fundamentals particularly stands out in my equity story?
  • How are we positioning our collateral to address the needs of investors with particular strategies (e.g. Income/Yield, Growth, Value etc)? Do we have a good understanding of the triggers of the investment decision on those funds?
  • What are the key non-financial metrics that matter in my story? What macro- or mega-industry trends is my company’s equity story continually benefiting from?

Opportunity Analysis

Many companies take a technical, if not scientific, approach to identifying investor opportunity. A starting point is to conduct a comprehensive analysis of your own shareholder base, factoring in significant movements over the past four quarters.

Next, an institutional investor study draws up a target investor groups based on a number of criteria:

  • Investors who are already present in my shareholder register
  • Investors who are invested in my peer group but not in my company
  • Investors who have held my company’s shares previously but do not currently hold them
  • Investors who have been increasing allocations to my region and/or my sector
  • New EM funds launched globally over the last 12 months
  • New ideas of investors from brokers and other consultants

Things to consider:

  • Do I have a clear understanding which investors with active mandates hold my regional and international peer group? How often am I monitoring changes and activity in this list? Are the changes in line with what we are seeing in our shareholder base? If not, what are the drivers of the outliers?
  • Am I monitoring developments in the passive and ETF industry and do I understand which benchmarks my company is part of? What are my company’s allocations to each of those indices?
  • How often am I monitoring broader fund flows into my region and comparing this to what we are seeing in my company’s shareholder base?


Following this, companies often group investors into tiers, which then dictate the outreach strategy for the year. For illustration purposes the following example may be helpful:

All investor tiers have access to ‘passive channels’ which include IR website/web casts, annual report, IR mailings / press releases, IR events (R&D day, etc.), quarterly conference calls, event-driven/product conf. calls, phone & email contact with IR

The study can then be applied to three key geographies: Europe, North America and Asia.

884 thoughts on “A Framework for Investor Targeting”

  1. Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.


  2. Let everyone first you must do introducing my own self. My name is Van. One including the activities she wants most might be to get hold of coins but nevertheless she is not have the entire time currently. Supervising is what he is performing but very soon his woman and jacob will get started off their own home based business. California is a person’s birth set and My partner don’t system on adjusting it.


  3. When considering with this types of gadget it may be highly vital that you take a look at each and every aspects before really leaping in. However one could come across larger problems combating the right way to increase the business into trying this sort of tool.


  4. I maintain that survival is centered on a place of thinking. Even when weight-loss diet supplement and consequently well being can certainly help in this I think it truly is the mindset for success. Everything you need depends on making them suspect they are surely possibly a resource.


  5. I realised I was anticipating that immediately it achieved zilch that this new thread will precisely self implode at the same time I assume that is really wishful philosophy. Possibly in the future.


  6. Great write-up, I’m regular visitor of one’s blog, maintain up the excellent operate, and It is going to be a regular visitor for a lengthy time.


  7. I wanted to say say that living a long time is all about a state of intelligence. While a good meal plan and health can help around this I believe it’s the belief. It all boils down to making them understand that they are still an asset.


  8. This became truly spoken about a few days ago moreover I was for the work in the first instance. Over the course of time nevertheless it became quite clear that the entire district was taking part by doing this job. Archiving this could be good for you.


  9. Earle may be what can email me although it is regarded as not often the name directly on my birth certificate. Tennessee is where me and in addition my her conversation live and as a result my moms and fathers live next door. The favorite hobby over my your children and me is by doing ceramics all of this was I sufficient to start on new goods. Booking holidays is the things i do in the course of day role and the actual salary been recently really extremely satisfying.


  10. They concluded the olders personality experiencing was seen to use cigarettes her total life span, ate a significant amount of dark chocolate month after month and then would not embrace sports activities. Is actually not that excellent?


  11. I got what you mean , thanks for posting .Woh I am thankful to find this website through google. “Spare no expense to make everything as economical as possible.” by Samuel Goldwyn.


  12. This has been basically talked an hour ago also I realised I was for it primarily. Over a stretch of time despite the fact that it was discovered that the combined regional community was getting started in this particular installation. Archiving this might be beneficial to anyone.


  13. I genuinely enjoy looking at on this website , it contains great content . “One doesn’t discover new lands without consenting to lose sight of the shore for a very long time.” by Andre Gide.


  14. Simply wish to say your article is as surprising. The clarity in your post is just excellent and i could assume you’re an expert on this subject. Fine with your permission let me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please carry on the gratifying work.


  15. I’m very happy to read this. This is the type of manual that needs to be given and not the accidental misinformation that’s at the other blogs. Appreciate your sharing this best doc.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s