The beginning on the pandemic imposed one of the biggest changes in human behaviour for generations, impacting everything from the way we purchase our groceries to how we educate our children.
Indeed, the investor behaviour through their investment process shifted significantly with the introduction COVID-19 restrictions. Both private and institutional investors were faced with new challenges and opportunities which developed as the pandemic progressed.
Loose monetary policy meant there were readily available funds for new issues, many retail investors invested for the first time and experienced private investors allocated notably more time to managing their investments.
Notwithstanding the category of investor, their underlying asset classes or their investment strategy, all investors had one thing in common; everything they were doing was almost entirely digital.
Whether it be an institutional investor at home sitting in on an IPO roadshow that would have previously been held at a broker’s office or a High Net Worth individual watching a UK Investor Magazine Virtual Investor Conference, the way investors gathered information had moved online.
Digital Investor Relations
Once learned, human behaviour can be difficult to change, especially if there are clear benefits to the status quo.
This is the case with current investor behaviour, in particular the nature investors are now seeking out and researching investments.
Investors have adapted to a digital and virtual environment that started way before the pandemic but was cemented by lockdowns and social distancing.
Rightly or wrongly, the use of social media by private clients to research and discover new investments has surged.
Investors events that were once held in-person now reach even more people online, meaning a corporate message can go further through a more efficient platform.
Whilst more traditional formats and platforms will always have a place, new digital formats born during the pandemic are here to stay.
