Enquire, the Investor Relations podcast

In the world of investor relations, communication and building relationships are paramount. To succeed in this field, you need to understand what influences a person’s investment decision. Knowing your audience well helps you to communicate and deliver information in a way that resonates with them. This week’s guest shares important insights on how to do just that.

Understand the Psychology of Investors

Matthew Johnson, the Director of IR & CEO Office at Vodafone, joins us in this episode to talk about the soft skills and psychology knowledge that have served him well in his career. He takes us back to when he first started working in corporate strategy, eventually finding his calling in IR. We hear about the different roles and industries he’s operated in, as well as the skills and knowledge he’s accumulated throughout his career.

Matthew explains his approach to coaching and maintaining consistent communication within his team, plus how that relates on a broader scale to Vodafone’s subsidiaries.

One of Matthew’s interests is behavioural psychology. He explains how he uses this to inform his approach to communicating with investors – both in meetings and in documentation.

Matthew’s conversation is full of brilliant insights and advice on how IR has changed during his career, how it differs across borders, his thoughts on the role of AI in Investor Relations, and the KPIs that IR professionals should prioritise.

In this episode:

· How working in IR delivery differs between Australia and the UK

· How Matthew built an IR function from scratch

· How focusing on commercial outcomes can enhance the success of ESG initiatives

· The benefits of understanding behavioural psychology in investor engagement

· Matthew’s approach to coaching team members across a large IR team

· How data helps you track trends to improve investor communication

· How to develop your specialist expertise to support your career

Quotes:

“Economic theory suggests that people, and therefore financial markets, are rational, always. Which is utter nonsense. It just doesn't happen because there are people involved. We are not robots.”

“The more data I get, the more my opinion turns into a judgement that I can then use to make a confident recommendation on how a plan should be enacted.”

“I've done over 10,000 meetings and my single ambition in every single one is to make that other person laugh. It's not because I want to be a comedian, it's about understanding the thought process, the physiological responses, as well as the psychological responses of humour. Immediately, it's breaking down a barrier and putting that other person at ease.”

Resources:

Connect with Matthew on LinkedIn

With decades of experience behind him, today’s guest is probably the longest-standing fund manager in London. Having started his investment career in 1987 when he joined Schroders as a UK equity fund manager, Andy Brough has managed the well-known Schroders UK Mid 250 Fund since its launch in November 1999. In this episode of Enquire, he joins us to share his view of investor communication today, his market outlook for 2024, and his advice for companies who want to stay ahead of the curve. We discuss the financial metrics that Andy focuses on, key takeaways from some of the standout investments of his career, and much more. To hear Andy’s insights and perspectives on companies’ communications with investors, tune in today.
Key Points From This Episode:

• Andy’s outlook for the year ahead and the challenges that come with running a fund.
• His take on the IPO market and why fund managers are often disillusioned by it.
• Some of the financial metrics he tracks while managing funds.
• Advice for companies that are looking to attract investors.
• How fund management has evolved since Andy entered the industry in 1989.
• Tips for staying on top of the sheer volume of information that fund managers face today.
• What Andy wishes companies did better from a communications perspective.
• Characteristics of well-performing companies and how he interacts with brokers.
• Why Andy believes that companies today have too many advisors.
• The importance of treating your retail customer base fairly.
• Standout investments from Andy’s decades-long career and his advice for PLCs.

Quotes:

“I think companies use the report and accounts to a degree, but I think they could do a lot more on their website in terms of educating. This is our business, this is how we make money, these are the inputs into our business, so when you see that something has happened to oil, this could be the impact, and we can protect ourselves from that.” -Andy Brough [0:18:02]

“When you design a presentation, present it to your 10-year-old. If they can understand what you do, you're on the right track.” - Andy Brough [0:28:51]

Links Mentioned in Today’s Episode:

Andy Brough on LinkedIn

Andy Brough on X

Schroders

Equitory

Today’s guest on the Enquire Podcast is Nick Ashworth, the Director of Investor Relations at National Grid, one of the largest investor-owned utility companies in the world. It has a primary listing on the LSE, where it is a constituent of the FTSE 100 index and a secondary listing in the form of its ADRs on the New York Stock Exchange. Before National Grid, Nick spent 14 years as an equity analyst at Morgan Stanley, latterly leading the European Utilities equity research team, following four years covering consumer and retail stocks across Emerging European countries. In this episode, he shares his experience of transitioning from the sell side to investor relations and offers insight into managing, coaching, and developing an IR team at a large, growing organization like National Grid. We also discuss the value of evolving success metrics, Nick’s board communication and engagement tips, the important role that storytelling plays in IR, and much more!
Key Points From This Episode:

• Insight into Nick’s career journey and how it led him to National Grid.
• How his experience on the sell side informed his approach to investor relations.
• Nick’s take on how sell-side research has changed in the last 10 years.
• Ways that the IR function has evolved since he joined National Grid in 2019.
• What goes into managing, coaching, and developing an IR team.
• The keys to measuring success with National Grid’s 12-month rolling IR plan.
• Tips for communicating and engaging with the board, particularly for early-career investors.
• A look at Nick’s share register and marketing plan for the year ahead.
• Comments on the ADR program, conferences versus roadshows, and investor feedback.
• The importance of internal comms across a large, growing organization like National Grid.
• Regulatory challenges that come with having a split register between the US and UK.
• National Grid’s approach to AI tools for making the IR function more efficient.
• Passionate advice for anyone moving into investor relations from another industry.

Quotes:

“Particularly in a – through-COVID and then post-COVID – world, the way that we engage with investors changed hugely. Trying to find new and innovative ways to do it is important.” — Nick Ashworth [0:07:28]

“Whilst [the board has] lots of expertise in their areas, they’re not the financial communications experts for [the company]. They want to hear what you have to say. It’s a two-way dialogue.” — Nick Ashworth [0:17:14]
“There’s a storytelling function [to investor relations], but you can only do it if you know what’s happening with the numbers and you can see around corners.” — Nick Ashworth [0:35:27]
Links Mentioned in Today’s Episode:

Nick Ashworth on LinkedIn
National Grid
Grid Guide To... Series
Norges Bank's in Good Company Podcast
Equitory

Matt Hudson is a portfolio manager at River Global Investors, and he joins us today to explain his company’s priorities, processes, and outlook for the year ahead. We learn about River Global’s business cycle framework, its multi-cap approach, how the company conducts its research, and the way it processes large volumes of information in today’s digital age. Matt then shares some information on what IR departments and other companies could be doing to get noticed by River Global, including the importance of consistency. Our guest also walks us through his company’s process for interacting with RNS statements, dealing with adjustments, and how it optimizes channels of communication with clients. To end, Matt shares his thoughts on the current state of the UK equity market and what he expects in 2024, how the industry is coping with an unprecedented high-number of outflows, what he thinks about current government interventions, and his parting words of advice.

Key Points From This Episode:

• Matt’s investment process, and the focus of River Global’s UK Equity Income Fund.
• A bit more on his business cycle framework and the idea behind his multi-cap approach.
• How River Global goes about its research, how it handles large volumes of information.
• What companies can do to increase their chances of being noticed by River Global.
• The specifics that Matt and his team are looking for in investor presentations.
• How he interacts with RNS statements, and how River Global deals with adjustments.
• The value of capital markets days and site visits.
• Why face-to-face is River Global’s preferred method of interaction with other companies.
• Matt’s advice for what to do before and after a meeting with River Global.
• Guidelines for optimal communication.
• His thoughts on the current state of the UK equity market and his outlook for 2024.
• How the market is dealing with record-high outflows.
• River Global’s IPO selection process, and its views on current government initiatives
• Matt’s parting words of encouragement and advice.

Quotes:

“It’s about thinking about which areas of the market are going to outperform over the next two to three years, and then moving the portfolio in that direction.” — Matt Hudson [0:01:28]

“If you want feedback that’s useful, ask specific questions.” — Matt Hudson [0:21:00]

“The quality is higher, the leverage is lower, and the sustainability of [UK] dividends is a lot higher than it has been.” — Matt Hudson [0:28:11]

“UK equity income has been quietly outperforming the companies space over the last three years, five years, even over ten years. UK income, having had its challenges, is beginning to outperform even within this UK investor base.” — Matt Hudson [0:28:34]

Links Mentioned in Today’s Episode:

Matt Hudson on LinkedIn
River Global
Equitory

While investor relations may have evolved over the past 30 years, some things remain consistent – the value of building great relationships with investors has always been fundamental to building a successful career in IR. As someone with an impressive 30-year career across corporate finance, equity research, and investor relations, Peter Reynolds, Director of IR at Whitbread, joins this episode of Enquire, the Investor Relations Podcast, to share insights and advice gained from IR roles in multiple industries.
How Persistence, Being Proactive, and Getting Direct Feedback Are Key to Succeeding in IR
Peter takes us on a journey through his diverse roles, including his time at Rank Group and PartyGaming, where he built an IR programme from scratch and balanced regulatory affairs with investor communications. He offers his perspective on the evolution of IR over the past two decades, emphasising how the role has become more challenging yet more valued by senior management. Peter shares his approach to staying on top of current information from results days and industry changes and how he uses that knowledge to be proactive in his communications with company boards.
We explore the complex truth around measuring success in IR, with Peter arguing that conventional metrics like share price performance may not always reflect the true value of IR efforts. For Peter, persistence and open communication with investors (sometimes over years) are key to seeing success and tangible results.
In This Episode

• Peter takes us through his career journey and what has driven him to pursue IR
• What it was like managing regulatory affairs in the gaming industry
• Peter explains the learning curve he had when his role involved political lobbying
• How IR has evolved over the last 20 years
• Tips for keeping on top of information so you can be proactive with investors
• A typical day in managing IR at Whitbread
• How to measure success in IR
• The value of direct investor feedback
• Peter’s experience of presenting to the board
• Whitbread’s typical roadshow schedule
• Why IR teams need to stay on top of ESG matters
• How a digital-first approach has impacted IR
• Peter’s advice for anyone looking to start a career in IR

Quotes:

• "Being in a meeting and just watching that light bulb go on in an investor's head is a magical moment and one that I never get tired of pursuing."
  
• "IR is relatively easy when everything is going well. But when things are in a downturn or business is perhaps not performing well, it's when IR really comes into its own and we have to work the hardest."
  
• “Conventional success metrics are not always what you would think in IR because in many ways you just have to keep going and keep having those meetings and keep banging on the door and then you never know, at the right moment, the investor will pull the trigger.”

Resources:
Connect with Peter Reynolds