Point break: how to surf the investment case
More audiences, more content, more pages. Annual reports had all the momentum; they were riding the crest of a wave advocating for more. However, with the right eyes today, you can see the high-water mark and the wave receding.
The annual report is rolling back to being an investor-focused document. This change affects how you present your investment case in the report. We discuss how we can continue to surf it.
The investment case has been a stalwart of annual reports. Years ago, the primary audience was the investor. However, in recent years, the function of reporting has shifted to appeal to multiple stakeholders, with stories about growth and investment opportunities evolving into narratives of broader value and sustainability. This shift often made the delivery and tone of the investment case feel less authentic.
There are two inverse solutions to this problem. You can align your story with your investment case or your investment case with your story.
Aligning your story to the investment case
If you acknowledge that investors are the primary audience of your annual report, you are ahead of many. Yes, the annual report needs to include content for other stakeholders, but if your business aims to convey an investment or growth narrative and the main readership comprises investors, why not align with them?
Instead of forcing a narrative that gets derailed by page 5, focus the report on the equity story and deliver the broader stakeholder comms more meaningfully online and on social media, where people can see it.
Aligning your investment case to your story
Your annual report may need to address many stakeholders, include a balance of financial and non-financial information, and tell a compelling story. So, how can companies consider these when presenting their investment case?
A practical solution is to tie the investment case back to the theme. Often, the investment case feels inauthentic because it clashes with the report’s theme. For example, if you’re sharing a story about meeting customer needs, bringing up an investment case too soon could undermine that message. You can still mention an investment case, but it might fit better alongside something like the CFO’s review, where it connects more naturally with what’s being discussed.
Even if the investment case is in the right place and connected to the overall story, it can still feel misaligned as the content does not reflect the message. To support stories that are not financially focused, consider incorporating non-financial metrics or strategic opportunities as reasons to invest.
Either way
Whether your report is returning to being investor-focused or still used for a broader audience, delivering an authentic and meaningful investment case involves connecting the equity story with the wider corporate narrative.
Get in touch
If you’d like to discuss this, or any other subject, please get in touch with Richard Costa, Consultancy Director, at richardc@gather.london
We’d love to know what you think.