Frostrow’s focused distribution function provides investment companies with all of their strategic, marketing and investor relations requirements.
We promote our client companies as widely as possible in order to grow them. By actively engaging with existing and potential investors, we work to increase demand for the shares in the secondary market. This complements the efforts of the respective portfolio managers and stockbrokers, with whom we collaborate closely.
Frostrow works with Boards to define the distribution strategy of each investment company. A successful strategy ensures ongoing attractiveness to relevant investors.
Using our position as an independent investment company specialist, we conduct comprehensive market reviews to define intelligent, dynamic market strategies. These reviews typically involve sector and peer group analysis, investor consultation and perception studies, broker analyst opinion, market share and shareholder register analysis.
We want to enhance the investment proposition, differentiate it from its peers and ensure its ongoing attractiveness. We also want to identify the relevant investor groups, determine how best to reach them and then create appropriate content.
We then seek to distribute and market our client companies across a broad number of measurable channels as part of a wider marketing effort, targeting those investors we believe will be most receptive.
We believe that well marketed investment companies are better placed to grow over time, trade at a lower average discount than their peers and have more diverse, stable, shareholder lists.
To achieve this, we promote our client companies on a national and regional level, using a variety of means to actively engage potential investors and existing shareholders. These efforts include regular investor meetings, investment seminars, direct engagement with key sector analysts, data providers and central research teams, digital and print press, and monthly email distribution to a growing list of approximately 2,000 professional investors.
Frostrow focuses on building and maintaining long-term relationships with professional investors, including institutions, public and corporate pension funds, discretionary wealth managers, hedge funds, family offices and increasingly, execution-only platforms.
Since 2007, we have continued to develop and execute thoughtful and innovative marketing solutions for a broad range of new and existing investment companies with measurable success.
Frostrow provides investment companies with a comprehensive, investor relations function, managing all day-to-day strategic communications with the wider investment community, including investor requests for information, due diligence requirements and press enquiries.
We monitor market activity on behalf of the boards of our clients, acting as a link between the investment company, shareholders and other constituents. This ensures effective two-way communication and allows the portfolio manager to focus exclusively on stock selection and asset allocation.
Case Study 1 – Growing an existing Company
Finsbury Growth & Income Trust PLC (‘FGT’) - In this example, good investment performance, active distribution and marketing and tight discount controls have contributed to a very narrow average discount since 2000. There have been long periods where FGT has been able to issue stock at a premium through regular ‘tap’ issuance at prices close to NAV per share.
Frostrow’s active national and regional distribution and marketing effort has directly contributed to raise the profile of FGT in the investment community. This has helped to stimulate the secondary market demand, resulting in ongoing share issuance and the broadening and diversification of FGT’s share register.
Since January 2014, the number of FGT shares in issue has grown by +63% from 87.3 million to 142.3 million, whilst maintaining a constant premium (as at 30 Sep 2016). In 2015, FGT raised £133.6m in the secondary market, second only to Scottish Mortgage Investment Trust PLC across the sector.
Since 2013, FGT has won a raft of awards, including Best Investment Trust (Shares Magazine), UK Equity Income Fund of the Year (Investment Adviser), Best UK Equity Income Fund (Investors’ Chronicle) and the UK Equity Income category (Moneywise and Investment Week).