Working for better IR

Reflections on a quarter-century of IR to mark IR Magazine's silver anniversary

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Celebrating the 25th anniversary of IR Magazine, it’s important to note that Brazil 25 years ago was very different from today, particularly its economy and capital markets. Back then, Brazil was in its first years of redemocratization after 20 years of authoritarian rule led by the military, which had started in 1964.

Between 1985 and 1994 the country went through several economic initiatives – the Cruzado Plan in 1986, the Bresser Plan in 1987, the Summer Plan in 1989 – all of which, unfortunately, failed to control the chronic inflationary process that plagued the country, and led to an average annual inflation rate of 764 percent over the period.

In February 1994, the launch of the Real Plan, with the goal of seeking monetary stability and carrying out major economic reforms, represented a milestone in the development of the country. The annual inflation rate fell sharply to around 5 percent-6 percent, a rate that persists to the present day.

It was in this environment of economic stability that we saw the emergence of major initiatives that began to contribute strongly to the growth and development of the capital market in Brazil, particularly in the area of investor relations.

In 1997 a group of market professionals founded the Brazilian Institute of Investor Relations (IBRI), with the goal of bringing together professionals directly and indirectly linked to IR activity in order to promote programs and initiatives aimed at the development of this essential function in Brazil.

Importantly, the Brazilian capital market is one of the few in the world that is governed by legislation requiring all public companies to appoint a director responsible for investor relations.

The start of 1998 heralded the appearance of the first monthly publication in Brazil dedicated to IR: Revista RI – Relações com Investidores. In March 2013, it will celebrate 15 years of consecutive monthly issues, representing the primary vehicle for communication and dissemination of IR best practices among professionals and participants in the Brazilian capital market.

No surprise, then, that since 2005 Revista RI has partnered a joint initiative with IR Magazine: the annual IR Magazine Awards – Brazil.

These awards, underpinned by an independent survey of analysts and investment professionals covering the Brazilian capital market and conducted by the Brazilian Institute of Economics (a unit of Fundação Getulio Vargas), recognize companies and professionals for various IR best practices every year.

Ronnie Nogueira is publisher of Revista RI – Relações com Investidores.