Individual investors

Communication challenges

Agenda
Who are they? Why do they matter? How can you communicate with them?

Who are they?

individual investors,
From day traders to trend investors via swing voting retail brokers who act at the direction of these individuals, managed accounts account manager makes the buy and sell decisions investment clubs pooling money to make investments

Retail brokers - UK

Retail brokers US
8 major firms - 24000 locations - 150,000 individual brokers Major consolidation underway

Where do they invest?

Wealthier, more experienced investors enjoy an informational advantage and, thus, are more likely to invest overseas and experience good portfolio performance. Other investors use foreign securities for speculation or to improve upon poor domestic portfolio performance.

Some statistics
90 million Americans in 50 million households own
stock (source ICI) 36.8% of Hong Kong adults traded investment products. 49% of US companies stock owned by retail investors But only 15% of UK companies..

Why do they matter

Honda Targets Individual Investors:
reduces lot size adding online voting giving perks

Eurotunnel saved by investors

Such an outcome appeared unlikely last year after creditors backed out of a rescue deal and brought legal action against the company. But Eurotunnel prevailed after launching a multimillion pound advertising campaign to get out the French shareholder vote.

Communications
Changing rules:
Electronic communications as compliance OBO/ NOBO Mandatory web posting Changing practices

A war on complexity

Communications tools the basics

Companys website Annual report (E)mail The media threat and opportunity

Key channels for different audiences

PRESS RELEASE

TV, Radio, Newspapers Key financial websites, Chat rooms, search engines Trading systems
Investor conferences NAIC etc Company Squawk box

Individual investors: Day traders, trend investors

Retail brokers

Financial news services Reuters, Bloomberg etc. Specialist professional systems Eg FactSet, Factiva etc

Managed accounts

Conclusion
Retail investors are a key asset for the company
.and a potent threat Regular communication is the key No single channel is sufficient, a multi layer approach is best