Expert investors look harder at information

Press, 6 July 1988, Page 38

Expert investors look harder at information

PA Wellington Professional investors are examining the information they receive from listed public companies more critically than they did at the same time last year, according to the annual Clulee and Associates study of investment community attitudes. The survey of 50 investment professionals (fund managers, brokers’ analysts, and business journalists) was conducted in May. Mr Robin Clulee said the results, when compared with last year’s survey — also conducted in May — revealed a marked shift in attitudes. “There was a significant decline in the ‘familiarity’ score — the extent

to which survey respondents were prepared to say that they were familiar with certain companies. “And there was an even greater decline in the ‘favourability’ score — the extent to which a favourable view was held. "The professional investor is now examining information more critically than last year,” said Mr Clulee. Some typical comment included. — • “We are getting the same information, but we are looking at it much more critically. • “Last year we summarised information and reached our conclusions sometimes within a matter of hours. • “Last year I had

been in the business only 18 months. The lesson of October 19 was that we have to be more cynical. • “Companies were promising the earth. They’re more likely now to stick to the facts and report only what they have to do.” Another conclusion was that the professionals now tended to follow a narrower list of companies than they did last year, Mr Clulee said. “To overcome this, companies which are not in the top 50 need to work harder on both financial performance and sharemarket communication.” Clulee and Associates is a consulting company specialising in communication between business and investors. It trades as part of Allmedia Consulting Group which has activities in Wellington and Auckland. |