Study finds fund managers will pay a premium for good IR
22 June 2009
A survey of Singapore based fund managers conducted by Singapore Management University and the Investor Relations Professionals Association (Singapore) (IRPAS) has found that Singapore based fund managers are willing to pay a premium for companies with good Investor Relations.
The survey is based on the response of 38 fund managers, representing 27 institutional investors with equity assets under management in Asia totalling over US $30 billion.
The survey’s findings include:
- 89% of respondents are willing to pay a quantifiable premium for companies with good IR; 66% would pay a premium of up to 15% and another 24% are willing to pay a higher premium
- The quality they value most is the credibility of the management and IR officers
- SGX listed companies achieved an “average” rating, but the 30 component stocks of the Strait Times Index fared better
- Top rated companies included SingTel, CapitaLand, Singapore Airlines, Olam international, SingPost and Ascendas REIT.
“This drives home the point that good IR requires a company to build credibility and trust over the long term,” says Joesph Chia of IRPAS. “It is not just an ad-hoc activity that a company engages in only when it has good news to share or when it needs to raise funds”.
This is the first study of its kind but the authors plan to repeat it regularly.
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