Passive Investing and Institutional Innovators Create Opportunities for Best Practice Investor Relations
As alarm grows regarding “passive” investing’s seemingly inexorable march to domination of equity investing, IROs are presented with yet another opportunity to contribute to the health of the capital markets. IROs have direct access to virtually all the moving parts of the public market investing process. IR’s medium to long term goal orientation and a position where doing the right thing creates economic value put IR at a critical juncture of forces to re-shape corporate finance. But besides the obstacles of a workload that keeps growing with each regulatory change and a lack of appropriate professional recognition and leadership advancing clear goals for the profession itself, it’s a challenging subject for IROs to highlight because it entails “insulting” IR’s “customers” – the active buy-side fund managers.