ating approachable, bite-size pieces of information that are more digestible to the everyday investor. Tractenberg is working on building more resources on his investor website such as 10-minute (or less) educational videos to scratch the surface of Wallbox and encourage investors to come back for more. He notes, “We don’t consume information in six-hour blocks. We consume information in 10-to-15 minute increments, so number one for me is having the materials the retail investor can consume.” Maselli adds, “Multimedia works really well with individual
investors. A company can put together a two-or-three-minute recording and say this is what happened during earnings and do something a little more engaging” than just issuing a press release. Stockperks also hosts a “Share Series” where it partners with public companies to conduct 30-minute fireside chats that offer retail investors the ability to hear a company’s story directly from management. Interestingly, it’s not just management that is looking to learn more about retail. Stockperks is also getting inquiries from boards of directors whose members are becoming increasingly aware of retail investor influence. Ultimately, it comes down to willingness. As investor relations
officers, we have a tremendous amount of information at our fingertips. Taking that information, drilling it down into videos, factsheets, newsletters, social posts, and more, will help us better communicate with our retail investors. Fasken says it can seem daunting at first, but says, “Start by
dedicating some time each day to understanding what is being said about your company. Is the information out there correct or do you need to rework the messaging and reeducate the public? From there, determine what points will best inform retail investors to make an informed investment decision and use all you can to get the right data out there so you can influence public sentiment.” In doing so, Siler reminds us that no matter how much effort
you put into this or how expertly crafted your videos and factsheets are, there will remain questions. Every question, he says, is a good question and deserves an answer.
Going Full Circle Tis article began by talking about financial literacy and the mis- sion to narrow the informational gap between Main Street and Wall Street. Tis need has become even more crucial as an increasing number of younger individuals become investors for the first time. Since they are young, there’s a lifetime ahead of them to invest in the stock market. Katherine Ross of Te Street penned a piece two summers ago at the height of the meme stock craze in which she asked readers to “demystify the Reddit retail investor.” She concluded that of all the beliefs out there about retail investors – positive or
2 6 SPRING 2 0 2 3 ■ IR UPDAT E
“What we’ve seen is that from the retail investor revolution has come a retail investor evolution. Now 63% of our investors say they are more plugged into fundamental analysis, company news, earnings, and
market news than they were a year ago. More than half are diversifying their portfolios following volatility in 2022. A majority of people whose first investment was a meme stock or cryptocurrency went on to diversify.”
Katie Perry, General Manager of Investor Relations,
Public.com
negative – one thing is for sure, and that is “these investors are here to stay post-pandemic. And they deserve a voice just as the ’suits’ deserve a voice, too.” Te retail investor is influential, the retail investor is growing,
and the retail investor should be part of your investor relations targeting strategy. Fasken sums it up perfectly: “It’s the thing your parents always tell you, right? Treat others the way you want to be treated. You are a retail investor. Most IROs and CEOs are retail investors. You should treat those investors exactly how you would like to be treated. IR teams need to look in the mirror and remember that they are also retail investors who should treat others the way they want to be treated.” So don’t forget to incorporate retail investors into your strat- egy to educate and inform your shareholder base. I’m certain it will be worth the investment. IR
Kimberly Esterkin is Vice President of Investor Relations, ASGN Incorporated, a leading provider of IT services and solutions, including technology and creative digital marketing, across the commercial and government sectors. She is also President of NIRI Los Angeles.
kimberlyesterkin@gmail.com.
niri.org/ irupdate
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