D2I

USD $40bn market cap and where 80% of funds flow.

Where are 80% of new funds allocated?

Ben Williamson

Apr 28, 2025 — 1 min read

80% of new funds go to one place.

This week I spoke with a USD $40bn company and got a great bit of insight that aligns with what we talk about here and I just had to share it.

The person I spoke to this week, let's call him Brad, has been in IR for decades and now works for a US based, USD $40bn market cap stock.

Not bad, Brad.

He has the background, the data and the connections to back up his numbers, so I believe him when he says: When a fund gets new funds in, they win a mandate, they get a return of capital, then 80% of that cash goes to the existing portfolio.

And it makes sense.

Let's imagine a $5bn fund, which gets $500m in inflows. Maybe a big stock got taken over, or they win a new mandate.

Do they leave that money in cash at bank? No...

Do they go and put it all into one new stock? No...

They spread it across their existing investments. They double down, dollar cost, back their book. We call this Upgrading at InvestorHub. Investors buying more shares in a business they already own.

And Brad's numbers match up with ours, because Upgraders account for 63% of all stock bought on market. Yep - 63% of your volume over the next 3 months is likely to already be existing holders. And returning shareholders account for another 16% - taking the names on your registry all the way to 79% of volume.

Three plans to write for next month

I said this would be quick, so let's make this plan simple:

Over the next 6 months, what 3 specific actions are we going to take to engage our existing investor base, and what do we want the result to be?
Over the next 6 months, what 2 specific actions are we going to take to engage new investors - and what do we want the result to be?
Over the next 6 months, what 1 specific action will we take to engage past shareholders - and what do we want the result to be?

That then covers Existing holders to drive Upgrading (63% of buying), New investors to improve conversation rate for Entry (21%) and of course Returning investors to cover old holders (16%).

Let me know how you go.

Cheers,

Ben

Insights from 15 interviews at the Ignite Investment Summit.

Here's what I learned from my conversations with ACG Metals and ADX Energy on the importance of getting visibility around your story.

Best-practice IR for investors.

From an investor’s perspective, great IR builds trust, not confusion. This article explores how timely updates, clear language, and consistent engagement define best-practice IR - and why companies that get it right earn long-term investor confidence.

Examples of best-practice IR.

Best practice IR is already happening and it’s measurable. From interactive earnings calls to clear capital raise communication, this article highlights real-world examples of how leading companies are engaging investors better, building trust, and staying ahead of the curve.

Understanding best-practice IR.

Best practice IR goes beyond compliance. It’s about proactive, transparent, and scalable communication that builds trust, improves market outcomes, and strengthens relationships with all investors - not just a select few.