After more than three decades on the sell- and buy-side, Patrik Schwendimann recently transitioned into the role of Head Investor Relations at Emmi. In this interview, he shares his perspective on what defines effective investor relations, the challenges of moving from analyst to issuer, and the importance of transparency, trust and dialogue within the IR community.
-
After 32 years on the sell- and buy-side, you recently took over the role as Head Investor Relations at Emmi. In your former function, what was your perception of good versus less good IR? Can you give some examples?
Good investor relations involve a clear, easy-to-understand equity story. The equity story must answer the question of why an investor should invest and what they can expect. Good investor relations also ensure that negative events are incorporated into communications as quickly as possible, and more promptly than positive events. Poor investor relations do exactly the opposite and put off bad news for as long as possible, which can lead to a loss of trust and failure to meet expectations. Good investor relations also mean being honest when explaining why a particular development was better or worse than expected. Investors and analysts aren’t stupid.
-
Now after having “shifted sides”, how will you apply these insights to your IR activities, and where do you anticipate facing challenges?
I am trying to put into practice what I have just said about good investor relations. I know that it’s much easier to criticize than to put things into practice yourself. And I am, of course, aware that there are also conflicts of interest when it comes to communication. For example, a company cannot disclose trade secrets that could then be exploited by its competitors. Typically, the availability of a CEO and CFO for investor relations is limited. It is therefore important to me that I am kept fully informed, just like the management team, and that I am available to help investors and analysts.
-
In what ways do you expect the Swiss IR Club to be of the most value to you?
I look forward to discussing IR matters with colleagues from other companies at events or private gatherings. For me it is also interesting to receive an update on IR-related topics at the annual Investor Relations Conference hosted by the IR Club and SIX.
Patrik Schwendimann
Head of Investor Relations @Emmi