What is investor relations and what does an investor relations manager do?

Investor relations inform exisiting shareholders about the business’s financial performance, governance & future prospects and help new investors to make informed investment decisions. Investor relations managers are responsible for communicating with the investor community of an organisation. The role integrates skills in finance, communication, marketing, compliance and corporate governance

Investor relations managers enhance the company’s image in the investor community by proactively managing communication and increasing shareholder value. They achieve this by issuing press releases, presenting at investor meetings and communicating to the investor community through regular reports which provide investors with dependable updates relating to a company’s affairs.

Key responsibilities

Responsibilities will vary, but examples include:

  • Effectively communicating key messages to the prospective as well as the existing investors.
  • Preparing investment related presentations and updates.
  • Organising and conducting meetings with investors.
  • Performing in depth financial analysis, researching the market and monitoring the trading trends and interpreting data related to the company that could affect shareholders.
  • Producing relevant presentations and data visualization.
  • Creating financial and research models.
  • Interacting with equity research analysts.
  • Advising management on identifying and approaching suitable potential investors and on the priorities and concerns of the shareholders.

Why are they important?

Professionals in this field ensure that information received by investors is relevant, correct, timely and understandable and play a key role in maintaining strong and transparent relationships between the business and investor community.

Skills needed for this role

Investor relations managers must have outstanding interpersonal skills as well as strong communication and presentation skills in order to explain complex topics in a clear and concise manner. They should also have good organisation and analytical skills with an excellent understanding of financial reporting requirements.

Strategic Professional Options examinations linked to this role

Advanced Financial Management

Career opportunities presented by this role

Investor relations roles are more commonly found in larger companies and those listed on the stock market. Global businesses may also present international opportunities, especially for those who are multilingual.

Competencies

High level competencies required include:

  • Corporate and business reporting

    A. Prepares financial statements, corporate financial and integrated reports for external stakeholders using appropriate technology.

    B. Leads effective decision making through analysing, evaluating and communicating performance and position of entities.

    C. Prepares financial statements for groups of entities using appropriate technologies.

    D. Monitors, critically evaluates, and advises on the relevant accounting standards, regulations, conceptual and financial reporting frameworks.

     

  • Financial management

    A. Links developments in global trade, markets, business practices and the economic environment to required improvements in the financial and risk management of an organisation.

    B. Advises on business asset valuations, capital projects and investments using appropriate analytical qualitative and quantitative techniques.

    C. Identifies, evaluates and advises on alternative sources of business finance and different ways of raising finance.

    D. Communicates and advises on the impact on financial decision making on current developments in regulation, governance and ethics.

    E. Assesses and advises on appropriate strategies to manage business and organisational performance regarding business and finance risk and effectively communicates the impact.

  • Stakeholder relationship management

    A. Positively develops relationships with internal and external stakeholders.

    B. Communicates and gains commitment from internal and external stakeholder.

    C. Uses emerging technologies to collaborate and communicate effectively with stakeholders.

    D. Applies professional and ethical judgement when engaging with stakeholders.

    E. Aligns organisational strategic objectives with stakeholder needs and manages expectations.

  • Strategy and innovation

    A. Applies business acumen and commercial awareness to deliver business objectives.

    B. Recommends a range of suitable strategic options from which to develop sustainable plans and objectives.

    C. Evaluates, justifies and implements suitable strategic options.

    D. Adopts and applies innovative methods to implement strategy and manages change.