A new phase of more sophisticated investment case reporting can be observed across the FTSE 350 and AIM 50 as corporates mature from a focus on creation to communication.
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We are two years on from Design Portfolio’s original review of investment case reporting trends, and I certainly didn’t predict that I would be writing this from my kitchen in the midst of a global pandemic. The world has changed, global markets have changed, working practices have changed and, unsurprisingly, the way in which companies are presenting their investment case has changed.
Our last investment case research was written in the wake of MiFID II, looking at the rise of investment case reporting in response to a fall in sell-side coverage. Now our research comes in the wake of a suffering global economy, a surge in ESG investing, imminent recession and the “new normal”.
What is an investment case?
An investment case is an integral part of a company’s corporate communications. It can help demonstrate the purpose of the business, the market position and any
future plans for development.
Put simply, the investment case answers the question on every investor’s mind: “Why should I invest?"
Read more in our previous Investment Case Whitepaper.
It is in these challenging times that companies must communicate their investment case as clearly as possible. Potential cuts in dividends, more scrutiny on social purpose and a need to demonstrate sustainability mean that the role of the investment case has shifted once again as it needs to answer even more questions than two years ago. But answering questions is one thing, proving them is another.
Our latest whitepaper, Crafting your investment case: an analysis of investment case reporting across the FTSE 350 and AIM 50, sheds some light on the evolution of investment case reporting and how this differs across indices.
The underlying theme from this year’s report is that the investment case is growing up. A new phase of more sophisticated investment case reporting can be observed across the FTSE 350 and AIM 50 as corporates mature from a focus on creation to communication.
Investment case key trends
Our key trends identified include:
- The investment case has earned more prominent positioning in corporate communications.
- ESG is shaping the themes addressed in the investment case.
- Better data is being used to support the investment case as corporates strive to provide evidence.
- Consistency across reporting platforms has increased.
- The opportunity in video remains unmet.
To find out more about the key trends within the FTSE 350 and AIM 50 and to learn what makes a best practice investment case, download and read our whitepaper.