Managing investor relations securely with the VDR solution will provide the possibility of widespread use of electronic document management and automatic processing of information. Reducing the number of paper documents and manual labor will inevitably lead to a reduction in the risks and costs inherent in the old system.
What New Will VDR Solutions Offer in Connection with the Change in the Format of Interaction with Issuers and Investors?
For managing investor relations securely, it is important that all participants receive information about corporate actions as early as possible and that this information is the same. One of the elements of the reform will be the creation of a Corporate Information Center based on NSD. The Corporate Information Center will receive information on corporate actions from issuers in a structured electronic form. Further, this information will be automatically transmitted to NSD’s clients and posted on the website for any interested parties.
A combination of diminishing returns in the hedge fund industry amid challenging market conditions to generate alpha and the process of managing investor relations securely has led to a shift away from more traditional hedge fund products toward the more attractive forms of returns offered by equity investments. The possibilities of electronic voting, centralized electronic sending of requests to convene meetings, putting issues on the agenda, and nominating candidates for the issuers’ management bodies are extremely important for investors; their appearance cannot but affect the improvement of the quality of corporate governance of companies and, as a result, investment attractiveness the market as a whole.
In the meantime, the big distributors are getting bigger, and with the increase in size comes a gradual increase in strength and ability to demand ever more profitable and exclusive offers from managers. Often this increased influence may not only result in specific rights or benefits within the existing fund structure, but in some cases, requests from institutional or strategic investors may lead managers to create a custom type investment fund: a structure with individual terms and conditions set specifically for meeting the requirements of the investor, which is commonly referred to as a “fund of one.”
How to Manage Investor Relations Securely with Solution of Virtual Data Rooms?
For managing investor relations securely, it is important that all participants receive information about corporate actions as early as possible and that this information is the same. One of the elements of the reform will be the use of virtual data room solutions. The center will receive information on corporate actions from issuers in a structured electronic form. Further, this information will be automatically transmitted to clients and posted on the website for any interested parties.
To manage investor relations securely with the virtual data room, it is also important to note that:
- Any investment activity is accompanied by risks, i.e., the risk of losses, as well as the risk of failure to achieve the planned investment result.
- The risks associated with an investment should be assessed before making an investment decision, as well as regularly thereafter during the holding of a security or contract.
- The need for investment goods arises as the level of an individual’s income rises. As incomes rise, there is more and more financial surplus; along with this, there is an opportunity and desire to invest a certain amount of money in the hope of generating additional income in the future.