During the opening panel of CIRI’s 2022 Annual Conference, one of the topics CIBC’s Corporate Medical Director, Dr. David Brown, spoke about was how we can think about things we want more of – and with whom we need to negotiate to get them – given the finite amount of time we each have.

I suspect I am not alone in being hooked on IR because, at its best, it operates at the crossroads of so many things. It requires you to function effectively in a world of corporate finance and strategy, while simultaneously managing the psychology of management teams and Boards, with an eye on regulatory compliance. And while it is an important element of the job, it’s easy as an investor relations officer to spend too much time focusing on the short term – in the form of quarterly material production, quarterly consensus and guidance management, and turning to internally focused demands.

As I thought about Dr. Brown’s advice to “strive to thrive” and to assess “what I want more of”, I reflected on the fact that my best advice to management comes when I take the time to consider the right things: those that will meaningfully change investors’ perceptions. Supporting the business to communicate and achieve longer-term objectives – through investor days, equity issuance or messaging around acquisitions or divestment activity, or quarterly as part of a clear longer-term communication plan – is where I think IROs often really prove their worth. It is also, in my view, where they can get the most satisfaction.

Being effective involves staying up to date on macroeconomics and industry developments. It means making sure I appreciate how these things are affecting investors’ capital allocation priorities and taking the time to read their policies. And it means doing the research necessary to understand investors’ longer-term expectations for my business and how they prefer to engage around these matters.

So, if you are ‘striving to thrive’ and looking to comprehend investors’ longer-term expectations, here are a few reminders of where you can start:

Conferences: Focus on conferences like CIRI’s and external events that remind us of the bigger world in which we, as issuers, are operating and that give us new insights to apply to our role.  

At the CIRI Conference this year, I heard the high-level macroeconomic perspective from Avery Shenfeld, Managing Director and Chief Economist, CIBC World Markets, which informs us how asset allocators think and provides insight into sectors other than mine. I took away perceptions regarding Canadian trade patterns with Russia and the implications of recent events for global food supply and the resource sector. As a result, I spent more time thinking about inventory financing and a full employment recession. I was reminded that market cap can put your company off-limits for some U.S. investors, no matter how attractive the sector in which you operate, or how favourably perceived your management team is. I heard investors like Frederic Bastien, Managing Director, Capital Equity Markets, Raymond James and Jennifer Stevenson, Vice President and Portfolio Manager, Dynamic Funds, explain that ESG disclosure can provide a different window into how management thinks, why semi-annual reporting would be welcome to some investors and why not all investors value tours of operations.  

External events: Another window into how investors think and industries operate is platforms that host CEOs, like the Economic Club of Canada and the Canadian Club.  

In June, I attended a Canadian Club event with John Graham, President and CEO, CPP Investments, which gave me insight into the Canada Pension Plan’s exposure to Canada (16% of the portfolio is invested in Canada), its ESG views and how it is building a portfolio for future generations that it feels best serves all of its 21 million contributors.   

Perception Studies: Talk to investors via a perception study, with a set of questions focused on the long term. Investors generally take the time to participate in perception studies and give thoughtful answers, often with attribution. I have found these a great help in shaping investor day materials.  

Investor websites and newsletters: Read what investors write or publications to which they contribute. Firms take the time to produce these for their investors, whose money they are managing for the longer term. Increasingly, investors are also recording videos for their clients and publishing them externally. Value investors set out their long-term theses in a handful of value investor blogs and newsletters.

Competitive intelligence: Finally, monitor what your competitors do. Seek out not just the quarterly results of companies in your industry (and adjacent industries) but also understand how they are thinking about strategy. Pay attention to sector M&A and how existing and target investors might be thinking and learning about your company.

If you find yourself reflecting on how few of these ideas you have pursued in recent months, it may be worthwhile to figure out whom you need to negotiate with to find time to add them to your plate.

Karen Keyes is Head of Investor Relations at Canadian Tire Corporation Limited.