|
Introduction
The definition adopted by the National investor Relations Institute states
that investor relations (IR) is a strategic management responsibility
using the disciplines of finance, communication, and marketing to manage
the content and flow of company information to financial and other constituencies
to maximise relative valuation.
Development and Practice of Investor Relations
There has been an upward trend in the number of companies seeking an Initial
Public Offering (IPO) and also in the participation of stock markets by
both individual and institutional investors. Besides, with the increasing
need for businesses to raise capital both locally and internationally
has indeed created a catalytic effect on the development of businesses
to attract and retain the interest of investors not only in their stocks
but also in their companies. As a result, the role of Investor Relations
Practitioners (IRPs) become increasingly important, if not, critical.
IR has, in recent years, sprang into more vital prominence, with more
organisations establishing IR positions or expanding existing departments
to undertake the demands for better relations with the investment community.
There are several factors that contribute to this surge in demand for
IR Practitioners (IRPs).
- Increase in the number of companies whose shares are held by the public
and institutional investors.
- Growing need for businesses to raise capital to meet increasing competition
and to finance growth.
- Sophistication of financial analysts and their increasing concentration
on larger companies.
- Sharp rise in the role of institutional investors - banks, insurance
companies, fund managers - and their emphasis on disclosure and full
valuation of shares.
- Demands for better management performance that is translatd into
higher share prices.
- More stringent requirements for disclosure of information by SGX.
- Expanding importance of foreign financial markets for financing local
business and industry.
Profile of an Investor Relations Practitioner
IRPs come from both different academic and professional backgrounds. Some
began their careers in IR after having worked as stock analysts or in
investment-related industries, while others entered the industry as former
financial journalists. Increasingly, many polytechnic and university graduates
have also found entry-level positions in investor relations. Senior IRPs
tend to have eight or more years experience in this or related fields,
and would have also represented companies from a variety of industries.
Elements of a successful Investor Relations Practitioner
In order to be a successful IRP, you must possess both communication and
marketing skills, and also a good understanding of financial markets and
how they operate. Additionally, you should have the capability of dealing
with stock analysts, media personnel, bankers, lawyers, accountants, fund
managers, and institutional investors. IPRs should also have a working
knowledge of public affairs, local politics, and a comprehensive perspective
of national issues and their impact. Typically, they would also have an
understanding of the regulations and requirements of different exchanges.
This knowledge helps to assure that the rules of disclosure are strictly
adhered to.
The Practice of Investor Relations in Singapore
With the establishment of the Association of Investor Relations Practitioners
(http://www.airpap.com/) (AIRP) in
Singapore, it is evident that the industry is in fact growing. One of
their objectives is to foster best practices and enhance ethical and professional
standards in the practice of investor relations. To ensure a minimum standard
of new entrants into this industry, the AIRP will certify candidates that
have successfully completed the Certified Practitioner of Investor Relations
(CPIR) Programme. This six-month programme, offered by APEC Business Exchange
(http://www.apecbizex.com/), will
equip candidates with practical knowledge of finance, communications,
and marketing that is required of an IRP. In addition, certified candidates
who join the AIRP will be able to attain international portability as
the AIRP is a member of the International Investor Relations Federation
(http://www.iirf.org), headquartered
in London.
How to become an Investor Relations Practitioner?
As IRPs need more than one area of expertise, not many programmes in the
market are adequately equipped to train IRPs. Currently, the only programme
available to equip graduates with the necessary skills and practical knowledge
is the Certified Practitioner of Investor Relations (CPIR) Programme,
conducted by APEC Business Exchange. Upon successful completion of the
Programme after passing the CPIR examinations, the Association of Investor
Relations Practitioners will certify the candidate as a CPIR.
The CPIR Programme
The CPIR Programme is a market-oriented programme taught by experienced
practitioners and focuses on three disciplines, namely that of finance,
marketing, and communications. Adopting an MBA-style of instruction, candidates
will work on numerous case studies in groups, where they can experience
the real-life challenges faced by IRPs everyday.
Conclusion
Becoming a successful IRP is not difficult but it requires hard work,
lots of networking, and a good understanding of how financial markets
work. But in the long run, even experienced IRPs will have to keep up
with the development in the industry as it is an extremely dynamic one
and you can expect a lot of new developments in the years ahead.
Main Article | JobsDB.com
|