[Product Release] Q4 launches Continuous Share Register Analysis (CSRA), the UK’s fastest and most scalable shareholder intelligence
14 June 2018
By Marla Hurov
For an IRO in today’s market, one of the greatest challenges is being able to access shareholder and ownership data in a timely and efficient way. In the UK in particular, corporates typically have to wait for their monthly analysis (sometimes even quarterly, for small caps) to find out what’s happening inside their shareholder base. The reality, however, is that shareholders drive shares up and down at will, not according to any SRA schedule. In the time that you’re waiting for your next report, a minor stakeholder could grow into a sizeable influencer or a shareholder could become an activist. It’s not surprising that most IR professionals feel like they’re behind the eight-ball. Waiting for 30+ days to stay on top of a changing tide (only to potentially miss it altogether), simply doesn’t cut it.
With Q4’s recent Continuous Share Register Analysis (CSRA) release, SRA is about to change forever. CSRA drastically reduces the lag in ownership data from 30+ to 1-2 days, by providing on-demand access to a constant feed of your current shareholder positions. It continuously monitors your shareholder movements and pushes immediate notifications to your Q4 Desktop and inbox.
CSRA sets a new industry precedent, as the quickest and most streamlined way to stay on top of your shareholder base. You can now keep informed about beneficial shareholder movements and the drivers behind any dramatic swings, regardless of where you are in the month. At last, you’ll know if an unexpected surge in trade volume stems from an investor you recently met at a roadshow, or rather an activist in the making.
CSRA: Unprecedented speed and scalability
CSRA offers a constant view of key shareholder movements and immediately recognizes when there’s a deviation from their normal pattern of trade (‘Abnormal Change Indicator’). This is because of the advanced technology behind it. CSRA is driven by an artificial intelligence application, which integrates machine learning and big data analytics to assess and process all register and beneficial shareholder data. Using proprietary algorithms, it instantaneously sifts through and ‘learns’ large and diverse data sets to make sense of all the noise.
According to Amit Sanghvi, Q4’s Managing Director of Europe, “CSRA constantly monitors shareholder movements by becoming increasingly sophisticated at recognizing institutional holders and their nominees. In this way, it immediately deciphers any nominee change and the investors involved. It’s faster and more accurate than a human analyst could ever be.”
In addition to its unprecedented speed, CSRA offers scalability never before seen in the UK market. Amit continues, “Scalability always becomes an issue when a local or offshore team of analysts are processing shareholder data. Local teams need to increasingly grow their taskforce to process the sheer amount of data. While quality control is usually the real pain point of managing the extra resources afforded by an offshore team. CSRA is a next-generation solution because it automatically scales high volumes of fragmented ownership data.”
CSRA delivers continuous and immediate shareholder insights for:
- Stronger Return on Investment: As IR teams hustle year-round to make an impact with investors, senior management is constantly looking to measure their results. In addition, MiFID II complicates matters because IROs no longer have the traditional support and context from the sell-side. This means that all eyes are on the IRO for a return on investment from corporate access initiatives. There’s no better way to demonstrate value than to say, ‘I met with an investor and three days later they bought company shares.’ If you have to wait a month for this kind of data, it’s virtually impossible to connect the dots. CSRA provides the data you need to draw a line between shareholder activity and your program’s performance.
- Pre-empting activist threats: You don’t want to find out about an activist investor 30+ days down the line when it’s likely too late to take action. For example, if you’re Barclays PLC, you need to keep a constant eye on Bramson (and any sympathizing investors), calling for the investment bank to shut down its trading business. With CSRA, you can stay continuously abreast of any activist activity, to promptly nip threats in the bud.
- Answering to stakeholders: When there’s a sudden surge up or down in share volume, it’s not uncommon to get a call from a panicked CEO. If your share price materially deviates from fair value, stakeholders generally have legitimate cause for concern. Whether there’s a drop in share price, a surge in volume, or you become undervalued and vulnerable to activists, it’s critical to know who is driving these changes. Again, you don’t want to be in the passenger’s seat, waiting a month to find out. With CSRA, you’ll be promptly notified about any critical shifts and the players behind them.
Amit summarizes, “for the first time in history, corporates will be able to keep up with investor movements, with a close to real-time view into what their investors are doing. They won’t be at the mercy of monthly reports or investors voluntarily revealing themselves. You can finally mould and take control of your shareholder base while monitoring it for any threats.”
CSRA is fully integrated with the Q4’s industry’s leading IR CRM and is currently available only in the UK. For more information about CSRA and Q4 Desktop, contact email@example.com or request a demo today.