IR Monitor – 2 July 2025

In this week’s newsletter:

• Investor Forum Webinar: How fund managers and stewardship teams collaborate on engagements, what drives voting decisions and how IR can prepare for meetings 
• A shift in thinking as firms consider alternatives to selling to private equity: the Financial Times on the case of the accounting sector 
• City sends an SOS to fix London markets ‘before it’s too late’  
• Geopolitical volatility has made the IRO presence more important than ever
• AI’s impact on IR: Why IROs must learn the language of both people and machines
• And finally … If you want to short a dodgy company in Europe, good luck keeping it secret: an opinion piece from Bloomberg 

This week’s news

Investor Forum Webinar

Heads of Stewardship teams and UK equity portfolio managers from Allianz, Artemis and Jupiter came together at the recent Investor Forum Investor Showcase webinar. Stewardship and Sustainability teams are culturally integrated alongside the fund manager; however, viewpoints can differ therefore panellists identified the value of engaging directly to address concerns or reaffirm strategic thinking. Second, engage early. Discussions should be facilitated well ahead of the AGM and further consideration should be made to which spokesperson is most appropriate to articulate a particular area of concern. The value of thinking long term was also highlighted. Partnerships are enduring and meaningful relationships should be measured and supportive, but corporates should always be prepared for some tough questioning to frame a longer-term viewpoint.  

A shift in thinking as firms consider alternatives to selling to PE

The FT predicts an increase in IPOs in the accounting sector due to MHA’s listing on London’s AIM market. According to advocates, firms are increasingly interested in listing over selling to private equity due to the increased strategic freedom that comes with being listed. Private equity, by contrast, has the potential to bring a high debt load and focus on boosting profits. According to broker Cavendish, MHA’s listing represents a shift in industry thinking and more firms are considering the possibility of IPO as an alternative to PE investment. It’s time to keep an eye out, as firms more openly discuss their eventual public listing.  

An SOS to fix London markets

The city is worried about the health of the stock market and trading firms are beginning to flag the need for a revamp according to City AM. The launch of the “Save our stock market” initiative by IG Group is a call for policy-makers to better the market’s health. One demand is to remove the stamp duty on shares, which they feel unfairly penalises investors. 88 firms delisted from the LSE in the last year and foreign takeovers have proceeded at pace. This is the largest exodus since the financial crisis and firms are citing the lack of liquidity as their primary reason for leaving the UK. The LSE’s low liquidity is a matter that requires immediate resolution to hold on to firms that remain locally listed “before it’s too late” suggested IG.  

Geopolitical volatility has made the IRO presence more important

IROs can no longer avoid politics, according to IR Magazine, as global geopolitical and regulatory changes directly influence shareholder expectations and corporate strategy. Investors increasingly expect transparency on issues shaped by politics, from ESG policies to global market instability. Rather than avoiding sensitive topics, IROs should use them as opportunities to build stronger investor relationships. IROs must communicate clearly, adapt messaging to diverse investor needs, and leverage technology and data-driven insights to their advantage. As scrutiny of company leadership intensifies, proactive engagement is crucial.  

AI’s impact on IR 

Artificial Intelligence is now a core component of capital markets, influencing everything from earnings analysis to ESG scoring. As it secures its role in the sector, it is important for IR teams to understand how to use AI efficiently to engage with investors, to make communications more AI-readable. Asset managers increasingly use AI to assess tone, detect inconsistencies and benchmark disclosures. With 74% of investors expecting improved AI-driven reporting by 2026, IR professionals must align messaging for both people and algorithms. Transparency, logical flow and measured tone are imperative for stronger trust among shareholders.  

And finally… If you short a dodgy company in Europe, good luck keeping it secret

Bloomberg argues that the regulatory environment in Europe discourages short selling as – unlike the US and UK regimes which use aggregated short disclosures – the EU regime requires public reporting of individual positions over 0.5%. This deters hedge funds as their investment strategy is revealed too early, they risk backlash from companies, and profitability is thereby limited. Further challenges include limited access to independent research due to MiFID regulations and risks of legal action if short theses are misinterpreted as market manipulation. According to the newswire, short sellers can play a crucial role in uncovering fraud and without reform of the European framework, Europe risks losing a vital market function, raising concerns about who will expose the next corporate scandal if short sellers disappear.