What Does an Investor Relations Manager Do? (With Skills)

By Indeed Editorial Team

Published January 3, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Investor relations managers are experts who supervise communication and manage relationships with shareholders. They focus on the financial community of the company instead of its customers or the public. Understanding what an investor relations manager does can give you insight into its viability as a career path for you. In this article, we answer, "What does an investor relations manager do?", discuss the objectives of an investor relations manager, outline the essential skills required, and highlight how to become one.

What does an investor relations manager do?

Here are some answers to, "What does an investor relations manager do?":

Data analysis

Data analysis involves the interpretation of company data to inform business decisions and shareholder actions. This can involve using the company's internal financial data or extensive market research. Investor relations managers perform various analyses, including competitive analysis, industry analysis, and comparative valuation. They also engage in competitive divisional analysis of market rivals. By doing this effectively, investor relations managers can help ensure that the company is aware of services they can offer to increase patronage.

Related: What Is Quantitative Analysis?

Presentations and data display

Investor relations managers engage in and monitor various presentations in investor-related seminars and workshops. They also create detailed corporate earnings reports and give financial and business strategy presentations to company executives and other stakeholders. These presentations also help to provide records for future analytic and decision-making purposes.

Financial modelling and valuation

Financial modelling provides a numeric representation of a company's past, present, and proposed future operations. These models are tools to aid decision-making and help ensure an accurate estimation of the business' valuation. It also enables comparison amongst other businesses in the same industry. Investor relations managers can use financial modelling to determine stock performance based on corporate affairs, managerial decisions, and external events.

Information collection

This involves researching, sorting, and storing information relating to a company's financial status, the industry, and its investors. It also involves managing the company's database to ensure easy retrieval of relevant data. Investor relations managers can use information collection to consolidate all relevant information based on users' needs and summarize them in a way that's easy to understand.

Preparation of investor events

The investor relations manager provides logistics and schedules for events to ensure easy access to information by company shareholders. They may even develop, manage, and implement these investor-related programs. They're also responsible for giving advice to the company on identifying and establishing new relationships with new potential investors, which is a process called investor targeting.

Interaction with investors

Investor relations managers engage in periodic meetings with investors either through the phone or in person to address any concerns. Similarly, they can design questions and answers for the investor community and provide valuable information on its strategies, operations, and overall financial performance. This can provide investors with an overview of the company's financial state and help them make informed decisions.

Objectives of an investor relations manager

Here's an overview of the two major objectives of investment relations managers:

Informed decision-making

The main objective of investor relations managers is to ensure that investors make informed decisions regarding the equity of the company. They do this by providing updated information on a company's operations and finances to shareholders and analysts. This information usually consists of quantitative and qualitative reports, such as quarterly reports and business models. Companies disseminate such information through their website, events, press statements, and shareholder meetings. Companies can then make this information public to encourage investments and build a good brand image.

Forwarding input to management

Investor relations managers also help ensure that the company's management responds to input from stakeholders. They help inform management of the doubts and concerns of stakeholders and may implement policies to address those concerns. In addition, during periods of instability, they can advise management staff on preserving client relationships and managing share price.

Essential skills of an investor relations manager

Here are some of the essential skills to develop as an investor relations manager:

Industry knowledge

Any individual intending to pursue a career as an investor relations manager requires adequate knowledge of finance and investor relations trends, including financial accounting and emerging consultation and analytical techniques. Knowledge of emerging trends can help investor relations managers perform their duties effectively while advancing in their careers. An investor relations manager's financial proficiency is one of their most important skills, as financial analysis is at the core of their profession.

Related: What Is Industry Knowledge (With Levels and Examples)

Effective communication

An investor relation manager's role can involve dialogue between a company and the investment community. As a result, they typically require proper communication skills to build strong relationships between its management and its investors. Investor relations managers can also use this ability to explain complex topics in a simple and concise manner. Effective communication skills can be important to ensure clarity in messages and to avoid misinterpretation by investors or management. Investor relations managers may also require effective communication skills to make detailed presentations to inform business strategy.

Teamwork skills

Teamwork skills are abilities and behavioural traits that aid effective collaboration. Investor relations managers collaborate with other financial experts and professionals while performing their duties. As corporate analysis requires knowledge of various departments, they also collaborate with department heads to obtain relevant data. As a result of these responsibilities, investor relations managers require the ability to work with others. This skill utilizes traits like empathy, accountability, conflict management, and leadership skills.

Professionalism

Investment relations is a heavily regulated profession due to its dedicated nature. As a result, it's essential that investor relations managers are familiar with relevant rules and ethics guiding their organization and profession. It's necessary that investor relation managers conduct themselves professionally when offering financial advice, ensuring they only advise clients based on reliable market data. Similarly, many employers may require investor relations managers to dress formally to appear professional and confident at work.

Attention to detail

Attention to detail is the ability to complete one's duties thoroughly. Paying attention to details can help ensure the accuracy of consultations and presentations. When combined with strong communication skills, attention to detail can make an investor relation manager valuable to any company or financial institution.

How to become an investor relations manager

Here's an overview of how to become an investor relations manager:

1. Obtain a degree

The position of an investor relations manager typically requires a bachelor's degree in finance, economics, communications, accounting, or other related fields. Obtaining a master's degree or Ph.D. is optional, though it may make you more attractive to larger organizations. It's essential that candidates studying non-business degrees take electives to develop a fundamental understanding of business, finance, and technology.

2. Acquire relevant certifications

Certifications are official documents attesting to a professional's expertise in a specific field or specialty. Obtaining a certification is a great way to demonstrate your competence to potential employers and increase your chances of acquiring a position at a company. An example of a certification you can consider pursuing is the Financial Modeling and Valuation Analyst (FMVA) certification, which is available from the Corporate Finance Institute.

Related: How to Build a Career as an Investor Relations Manager

3. Gain relevant experience

An investor relations manager's role is rarely an entry-level position. Most companies require investor relations managers to have between two and seven years of work experience in public relations, investor relations, financial investment, or other related fields. Usually, it's also helpful to have experience working with publicly traded companies as that helps familiarize candidates with relevant regulations and ethics. You can gain experience in any of these entry-level roles to begin your career.

4. Develop relevant skills

Candidates pursuing a career as an investor relations manager require excellent communication and networking skills. These skills include verbal, written, and presentation skills. It's also pertinent to understand financial reports, financial data tools, and various analytical methods. Excellent leadership and negotiation skills are also core requirements of this position. You can develop your technical skills while gaining work experience and through practise.

5. Network with other professionals

Networking is a process of interacting with others to exchange information, develop professional and social contacts, and create meaningful relationships. It helps to identify and leverage lucrative career opportunities. For example, an investor relations manager can attend industry events and engage in discussions with employees to create relationships that may be beneficial in the future. While attending such industry events, it's best to dress professionally and distribute business cards to exchange contact information easily.

Related: Guidelines on How to Network

6. Apply for a job

After acquiring the relevant knowledge and experience, you can apply for the role of investor relations manager in a company. If there's an opening for the role at your current place of employment, you can speak to your manager for a promotion to that position. You can also apply to other companies offering this position. It's important you prepare relevant documents like a resume and cover letter. Ensure you also prepare for your interviews and other popular recruitment processes to help you feel calm and confident throughout the application process.

Please note that none of the companies mentioned in this article are affiliated with Indeed.

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