Regular communication results
in engaged shareholders
ASX-listed company Managed Accounts Holdings benefits from low
shareholder turnover and high shareholder confidence after using
“High shareholder engagement means that our management team can guide our business from strength to strength”
Managed Accounts Holdings provides software used by financial planning firms to create managed accounts, enabling their clients to build an online portfolio.
Before their IPO in 2014, Managed Accounts had a small number of shareholders: the senior management team. Their close working relationship meant that decisions were discussed and agreed following open and frank discussion.
When they were planning their float Managed Accounts wanted to retain this close management style as much as possible. However, having an open discussion with shareholders dispersed across the country is a very different prospect than a round table with a close-knit internal team.
Despite this, Managed Accounts felt strongly that regularly communicating with shareholders would be key to maintaining healthy and long-term relationships, so sought out a service that would ensure that security holders felt like an integral part of the organisation.
Managed Accounts have used Registry Direct as their share registry management service from day one that they became a listed company.
Viewing Registry Direct as a “best of both worlds” solution, Managed Accounts chose Registry Direct for the combination of the cost-effectiveness of a web-based application with the service and support of a traditional share registry management service.
More than just a share registry though, Managed Accounts views Registry Direct as integral to communicating with, and engaging, their shareholders.
Keeping in contact
While many listed companies only write to security holders for statutory reasons, Managed Accounts wanted to ensure that they could stay in contact with their shareholders much more frequently.
The senior management team produces videos four times a year showcasing recent developments at the company and presenting their plans for the future. These video updates are hosted on Managed Accounts’s own website, but emails to shareholders and Managed Accounts’ broker and fund manager clients are sent from within Registry Direct.
Managed Accounts also ensures that all company announcements are shared with shareholders at the same time as they are announced on the ASX. This ensures that all shareholders are informed of developments, even if they are not regularly checking the ASX’s website for announcements.
This instant and regular communication has been key in building and maintaining a healthy and mutually beneficial relationship with Managed Accounts’. shareholder base.
Re-engaging lapsed shareholders
Managed Accounts can even use Registry Direct to re-engage with ex-shareholders to keep them updated with Managed Accounts latest announcements. In this way, Managed Accounts can re-engage and the performance of the company to encourage re-investment.
The biggest effect that Managed Accounts has seen as a result of the shareholder engagement that Registry Direct has facilitated is a remarkably low turnover of shareholders. Investors are committed to the future of the organisation and there have been only a handful of changes in share holding since the IPO in 2014. A real testament to shareholder confidence.
The open communication has also meant that shareholders are aligned with the board and support their decisions. At the last AGM, there was not a single shareholder vote cast against any issue. Managed Accounts’ Chairman Don Sharp puts this down to the open communication, enabled by Registry Direct:
Don Sharp. Chairman Managed Accounts Holdings“The best thing about Registry Direct is the enormous value that it provides. Value isn't just about price. Rather, it's the results that using the service has had on our business in terms of shareholder engagement and ensuring that our management team can continue to guide our business from strength to strength.”
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