After a long and volatile year, most Investor Relations Officers are ready to close the book on 2022. But with Wall Street ringing its recession alarm for the year ahead, 2023 might not be any easier. In fact, it could be a lot harder.
A potential recession isn’t the only thing your team will have to navigate in the upcoming year. Here are three key issues that may impact your investor relations strategy in the new year.
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1. Continued Volatility
The International Monetary Fund and World Bank shared their gloomy predictions for the upcoming years in their first annual meeting since the start of the pandemic. It drastically culled its 2023 global growth forecasts, citing competing pressures from inflation, food insecurity, oil shortages, and interest rates for its decision.
The IMF is the latest voice to join the chorus of organizations raising the alarm about a possible economic downturn in the year ahead. Economist after economist believe a market slump is headed our way.
Whether it actually happens remains to be seen, but the reality is, your investors are worried about it either way. It may already impact the way they invest and interact with your company. Furthermore, ongoing inflation and interest rates can cause investors to react pessimistically in the year ahead.
In this situation, the IR firm Q4 recommends strengthening your investor relations narrative to underscore your overall investment proposition and key messaging in the face of such volatility. You’ll want to reconcile your performance with the capital markets to instill confidence in your investors.
2. A Greater Need for Engagement Analytics
Targeting is much more complicated during a bear market, as investor sentiment can oscillate wildly from one week to the next. Anticipating their behavior isn’t easy if you aren’t equipped with an all-in-one engagement analytics tool.
Engagement analytics software trawls for and aggregates data from your entire digital footprint, consolidating information gathered from the following sources:
- IR Site
- ESG Site
- Capital Markets Virtual Events
- CRM tools
It synthesizes and analyzes these broad data systems in one place, cutting through the noise to deliver key insights on all your digital engagements.
With this broad oversight over your digital engagements, you’ll find it easier to identify new or targeted investors as soon as they express interest online. Sophisticated engagement analytics helps you accelerate meetings with the right investors, identify activist investors, and measure the impact of your overall investor relations strategy in the new year.
3. Tightening Regulatory Rules
Another kink in your IR strategy is the evolving regulatory landscape. The Securities and Exchange Commission (SEC) proposed several changes to rules that could take effect in 2023, including disclosure regulations relating to Special Purpose Acquisition Companies (SPAC) and ESG reporting.
Additional changes in the SEC’s policy agenda for the next fiscal year include crypto-assets, the equity market structure, and private fund adviser regulation.
Whether you plan to de-SPAC in the new year or broadcast your ESG initiatives, an IR firm can provide guidance to ensure you maintain compliance at every step.
Regulatory changes, investor targeting, and an economic downturn are some of the biggest challenges you’ll face in the new year. However, with the right IR tools and professional guidance, you can strengthen your investor relations strategy against these issues.