Amongst Gen Z’s retail share ownership is booming.
It is a common misconception that Gen Z’s, who include those aged up to 26 years old, are more interested investing in crypto that good ‘old fashioned’ shares on the stock market. A slew of US market research studies* and confirmed by a recent UK survey of nearly 800 retail investors conducted by Gracechurch Group, reveal that share ownership amongst Gen Z’s aged between 18-25 is actually higher than any other age group. Higher that is in terms of owning shares but not of course by volume or value. All good so far for public companies and the long-term future of the stock market. However, to ensure that these young investors continue their investment journey, companies need to reshape their investor relations to appropriately engage with this audience in the right way. The Engagement Appeal (TEA), a new platform set up for inclusive investor relations, is at this vanguard. It has a core aim of bringing young investors and corporates closer together.
I’ve put together 3 tips for improving investor relations and making them far more inclusive for their Gen Z investors:
1. Demystify the language
So much of investor relations uses complex financial terms only fully understood by analysts, accountants, and seasoned investors. However, where possible, financial communications could be simplified, removing technical jargon to make it more digestible for those less experienced. Alternatively, simplified summary versions could be produced.
2. Consider what’s most important to them
Gen Z’s interests don’t just start and stop at sustainability. There are many other policies or actions that corporates could better align with the interests of Gen Z. Ranging from sponsorship, well-being, to employment policies: this generation has a view and a role to play.
3. Using the right channels and deploying a content-rich approach
Investor relations need to spread out to encompass both Instagram and YouTube. Deploy IR chat rooms, chat bots and podcasts. Use image led posts, animated announcements, infographics, and video posts. Excite and engage are the watchwords.
A bright future
If the faith Gen Z has shown into retail share ownership can be carefully cultivated through more inclusive investor relations, the future looks promising. The prize for corporates could be higher FTSE valuations and improved liquidity. Don’t underestimate the ability of these young investors, once energised, to spread very positive vibes to potential shareholders and even end consumers. Quite an upside.
Recent GenZ investment surveys: