The Quoted Companies Alliance and Baker Tilly have today published the results of our second survey of 16 major UK small and mid-cap institutional fund managers revealing valuable insight into current investment trends, how they view the market, and what companies can do to attract their attention.
This year, we found that, generally, fund managers were slightly disappointed at how the market performed in 2014 and continually mentioned the volatility in the market and the mixed bag of IPOs that took place. Investors also strongly criticised the performance of some advisers during the IPO boom in 2014, highlighting that the value the trust that they have built up with specialist brokers and advisers in the small and mid-size quoted company sector.
Fund managers were full of tips for quoted companies, in terms of key characteristics to look for in advisers and what they look for in investments. The most important aspect that many conveyed was that it is vital for companies to work with investors as early as possible and be open to a two-way conversation.
The survey, conducted by YouGov, is essential reading for any quoted company and covers:
- a review of the market in 2014, including their views on the quality and price of IPOs;
- the outlook for the market in 2015 and tips for companies on how to navigate the market;
- the ideal attributes of a company that is seeking to raise money and the red flags that make investors uneasy about a potential investment;
- characteristics of a good adviser and questions to ask potential advisers before appointment; and
- tips for building good relationships with fund managers.