The need to understand international investors
ACA's advisory service aims to help companies understand how international investors perceive and measure risk. Global deregulation, common standards, the Internet, and the institutionalisation of capital, have made conditions for raising capital more competitive. International investors have a greater choice where and how to invest their money, by international sector allocation as well as by choice of stock market. Companies therefore are having to make more effort to attract the attention of global capital through effective communications.

Avoid surprises
ACA also offers companies advice designed to help avoid "earnings surprises", which could upset investors and create volatility in the company's share price. Our focus therefore is on how to manage investor expectations. The solution is effective disclosure, which helps to reduce the likelihood of earnings surprises, diminishes the opportunities for speculative activity in the shares, and consequently attracts a more stable type of shareholder.

"Transparency of communication and practice inside the company helps build transparency outside the company"
Carly Fiorina, CEO of Hewlett-Packard, speaking at a Nikkei Business Conference, October 2002

Listen and respond
The ability to understand how international investors think about risk, and how they reward disclosure, is essential therefore when undertaking an effective IR strategy. We assist Japanese companies with strategies which will encourage wider foreign ownership of their shares. This service we believe can produce measurable benefits for clients in terms of improving the quality of their shareholder base (e.g. long-term holders rather than short-term speculators).

Measurable benefits related to the effectiveness of company IR activities
	Increase in holdings by existing institutional shareholders
	Growth in the number of institutions holding shares
	Improved quality in the type of investors holding shares - for example, more professional or long-term investors
	A rise in the number of analysts following the company
	An increase in the number of brokers making a market in the shares
	More publicity about the company in print, broadcast and online

Failure to understand foreign investors may mean:
1) Missing opportunities to implement financial strategies, which could raise the value of the company's stock and lower the company's long-term cost of capital
2) Failing to attract investment due to the competition for global capital, thus increasing the company's long-term cost of capital

ACA's main areas of advice
	Arranging face-to-face meetings with foreign investors
	Seeking to induce and collect strategic feedback from foreign investors
	Integrating feedback from investors into the development of stronger client IR programs
	Developing effective disclosure strategies in order to strengthen trust with stakeholders
	Carrying out surveys of shareholders and investors

Web advisory
Through our network we are able to recommend IR Web tools which assist companies to communicate with foreign investors.

Web tools include:
	IR webcasting for earnings calls
	Interactive communications services for analysts and investors
	Video streaming of corporate presentations and road shows
	Visitor profiling

Web management and design
ACA can advise on the design and implementation of an effective web strategy for communicating with investors. We also work with partners to implement and manage bilingual sites.

Wider advisory network
Through our network in major financial centres, we are able to effect introductions, and work together with specialist solution providers in areas related to corporate finance (M&A, IPOs) and communications (Corporate Branding, Corporate Identity, Reputation Management). Companies in regional markets, like the Kansai, are at a relative disadvantage in gaining access to this know which could help them to leverage the value of their intangible assets. Therefore one of ACA's aims is to serve as a facilitator and channel for such companies to reach sources of expertise in Tokyo and elsewhere.