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Interview with JP Davids, Managing Executive of Investor Relations at Vodacom

Why did you decide to work with QuantiFire?

The core of my role is about getting to know our investors better which is also at the core of our relationship with QuantiFire. One of our main challenges is ‘attract mindshare’ from investors, which is generally tougher than it is for equivalent European listed companies, so it is important to work hard to understand what resonates with investors and what they really want.

It is vital to understand the changing way in which investors are thinking about companies and consuming data etc. To that end, the partnership with QuantiFire is about helping us to make sure that we put our best foot forward in terms of staying relevant with investors and to capture that mindshare.

Whilst I hold the main relationship with QuantiFire there are other cheerleaders within our company. In particular, our Group CFO is a very strong supporter as she really likes the objectivity of the reporting as well as the way that individual investor commentary is combined with broader market trends

How would you describe what is different about ‘Feedback Intelligence’?

In my former life as an analyst when I was approached to give feedback, I found the process to be quite tedious. The outreach was also very sporadic and only targeted a narrow audience, so I couldn’t see there being much benefit to the company.

What I really like about the service is that it provides objective feedback that is aggregated as market-level intelligence, whilst also generating individual feedback which we can go through line by line. I also like that the process is very transparent so that investors can be anonymous or provide their names. Where investors do provide their names, this presents great opportunities to reengage them in a personalised and efficient way.

QuantiFire’s more data-driven and scientific approach is the secret sauce that helps us to find the best path forward as an investor relations team. I am very proud that we now only use QuantiFire for feedback.  

What do investors say about this new approach to feedback?

Firstly, I don’t get any grumbles, so that’s a good sign! An even better sign is that the feedback response rate is very good, and we have lots of repeat users, so that’s a very good validation of the service. 

How do you share the results with your management?

I share the full unabridged Market Feedback Report with both our Group CEO and our Group CFO and we all go through the report together. They really like the combination of market level analysis alongside clear intelligence from individual investors.

For the Group ExCo I share the Board Summary Report and for the final Board pack, I just share two or three slides highlighting critical sentiment scores versus benchmarks as this particularly resonates with our Board. I also share the main trends, key messages and any steps that need to be taken to address any variances in our investor feedback versus the QuantiFire benchmarks.

Like most IRs, I have my own view on where fair value lies for the company and it is sometimes sobering to see where others think that price is. Even so, this is very valuable for internal stakeholders to hear, especially as there is no ambiguity in what I am reporting. I don’t have to second guess anything or say ‘I think this…’ or ‘I assume that…’ anymore, because I have access to such clear and specific insights, based on the collective voice of our investors. This is a really powerful thing about QuantiFire’s service.  

How else do you use QuantiFire’s Feedback Intelligence?

I am particularly focused on our key target investors and trying to understand what it is that will get them over the line to become invested. The verbatim comments, from these individuals is therefore particularly relevant and usually provides me with great opportunities for intelligent follow up.

I also closely monitor any changes in investor confidence, in parallel to changes in share price and on the share register. The investor feedback alongside shifts in individual sentiment scores can provide very useful context when an investor is selling down, for instance, because it helps me to understand whether this is due to something that relates to our company or to other factors that are outside of our control.

Another interesting application is in respect to the sell side. I really like that I am able to see which analysts are winning more or less traction in the market around certain aspects of our story, as it allows me to help those brokers whose message might not be resonating with the market. This can be especially helpful for new analysts who need to get up to speed as fast as possible. Having been in that role I am aware of the pressures that analysts are under, so I am always keen to help where I can.

What would your message be to other heads of IR who are considering working with QuantiFire?

I would highly recommend working with QuantiFire. Our collaboration with them has been instrumental in enhancing our understanding of investor needs and sentiments. QuantiFire’s 'Feedback Intelligence' offers a unique blend of objective, aggregated market-level insights and detailed individual feedback. This dual approach allows us to delve deep into the specifics of each investor's perspective, facilitating more intelligent follow-ups and targeted strategies.

Moreover, their service is not only comprehensive but also efficient, streamlining the feedback process in a way that is far more engaging and beneficial than traditional methods. The verbatim comments we receive are particularly invaluable, providing actionable insights that have directly contributed to our investor relations efforts.

By closely monitoring changes in investor confidence and sentiment scores alongside share price and register movements, we gain a nuanced understanding of investor behaviour. This context is crucial, especially when investors make significant moves, as it helps us discern whether their actions are driven by factors related to our company or external influences beyond our control.

In essence, QuantiFire's Feedback Intelligence is a powerful tool that has significantly bolstered our ability to attract and retain investor interest. For any Head of IR looking to deepen their investor relationships and improve their strategic decision-making, partnering with QuantiFire is a decision I readily endorse.  

Lastly, what do you see on the horizon for investor relations?

The shrinking pool of analysts is an important issue for many companies, but I think opportunities are also emerging. From my perspective Investor Relations is becoming an increasingly important intermediary between the investor community and the management team. One of the changes that this is driving for us is that IR evolving from a service that use to mainly relay information, to one that is taking more responsibility for ensuring that key strategic objectives are implemented. For example, for certain execution risks that investors tell us are really important for them, IR is taking more responsibility for ensuring that these concerns are addressed.

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