The difficulties faced by IR managers amidst prevailing periods of prolonged volatility
In the dynamic world of Investor Relations (IR), navigating the increasing diversity and speed of information demands in a volatile market has become a daunting task. IR managers are expected to handle an increasingly diverse range of topics, and they are responding with innovative strategies and the deployment of AI technologies.
One such strategy involves enhancing investor trust and relationships. Building strong, transparent relationships with investors is crucial, and this involves clear communication and maintaining trust through consistent updates and engagement. IR teams should also focus on strategic investor targeting, aligning their outreach efforts with both existing and potential shareholders who match their company’s growth strategy.
Adapting to market volatility is another essential strategy. Encouraging investors to diversify their portfolios internationally can help manage volatility, while suggesting a cautious approach while identifying opportunities for growth, especially in times of uncertainty, is also advisable.
Leveraging technology and AI is becoming increasingly important for IR managers. AI can be used for data analysis, providing real-time insights that help predict market shifts and make informed decisions. AI-driven communication tools can also streamline communication, automate routine updates, and personalize interactions with investors.
Unified data platforms that integrate diverse data sources are also being adopted to reduce fragmentation and enhance the speed of decision-making. AI can continuously monitor market trends and sentiment, enabling proactive strategies rather than reactive ones.
Companies are leveraging AI in several ways to manage the challenges faced by IR managers. AI can help predict market trends, automate routine reporting tasks, and personalize investor interactions.
In the face of these challenges, IR managers are finding ways to adapt. For instance, Franziska Gebekken, Head of Change Management at Deutsche Bank, suggests IR departments use generative AI to create more time for personal interaction.
Patrick Kofler, Head of Investor Relations at Zalando, is facing increasing information demand from numerous investors during the quarter. To prepare for this, strategies such as pre-earnings updates, direct discussions, and leveraging generative AI for more personal interaction are being employed.
In a panel discussion, the tightrope walk for investor relations managers was evident. Roger Peeters, Managing Partner of pfp Advisory, advises against catering to the short-term oriented part of the investor community and instead emphasizes building long-term relationships.
AI is expected to become increasingly important as a tool for investor relations work, according to consensus between investors and IR representatives. The multitude of media and information channels has changed perceptions, according to Katharina Seiler, Senior Equities Fund Manager at DWS with a focus on the Americas, who does not perceive the current period as uniquely crisis-ridden.
In the race for market dominance, companies like Nemetschek are narrowly beating competitors such as Fraport in indices like the MDax, considered a candidate for promotion to the Dax. Deutsche Telekom, Europe’s largest telecommunications group, won the IR Prize 2025, and the Bonn-based company is using social media to reach younger retail investors.
However, the increased focus on short-term thinking is a concern for some, with even long-term investors at Zalando showing signs of this trend. Alexander Groschke, Head of IR at Infineon Technologies, considers ESG to be more than just a fashionable topic and will continue to report on its progress in this area.
In conclusion, IR managers are adapting to the challenges of the volatile market by employing strategic approaches and leveraging AI technologies. By building strong relationships with investors, adapting to market volatility, and leveraging technology, IR managers can navigate the complexities of the market and meet the evolving needs of investors.
- To maintain a competitive edge in the rapidly changing financial landscape, IR teams are focusing on utilizing AI technologies for data analysis, thereby gaining real-time insights for predicting market shifts and making informed decisions.
- In the pursuit of fostering investor trust and relationships, AI-driven communication tools are being employed to streamline communication, automate routine updates, and personalize interactions with investors, ultimately enhancing overall efficiency in the Investor Relations (IR) sector.
