Proprietary Research Underscores the Value of Non-Quantitative Information for Institutional Investors

Edelman conducted a proprietary survey to explore the use of qualitative information in investment decision-making, and to discover how investors use qualitative information in their role at their firm.

We defined qualitative information (QI) as non-quantitative information that can help an analyst or investment professional develop a better understanding of a company’s strategy, competitive position, products, business performance and future developments.

The survey was conducted over a three week period in April 2015 and incorporates the views of investors.  The end goal was to reveal valuable insights to help IROs and financial communicators.

At a high level, the QI survey found that investors rely on qualitative information to fill out their investment thesis and create a valuation model

  • Investors view qualitative information as essential to analyze a company as it provides context investors use to:
    • Validate their investment thesis;
    • Understand historical results and gauge expectations for future capital allocation and expenditure; and
    • Evaluate guidance and track performance against strategy.
  • The CEO, CFO, IRO and line-of-business executives have distinct, but complementary roles in the IR program.
  • Responsiveness and effective conference calls rank as the two most important factors in a strong IR program.