Survey: Investor Relations Impacts a Public Issuer's Valuation

Results Show Investors Are Willing to Pay a Premium for Companies with High-Quality Investor Relations

TORONTO, June 7, 2011 /CNW/ - According to a new survey conducted by The Equicom Group Inc. (Equicom), a wholly-owned subsidiary of TMX Group Inc., with the assistance of the Canadian Investor Relations Institute (CIRI), investors are willing to pay a premium for companies with better investor relations (IR) practices.

The survey, which polled members of the Canadian professional investment community (financial analysts, portfolio managers, investment advisors and investment bankers) and Investor Relations Officers (IROs) across Canada, was aimed at better understanding IR's impact on corporate valuation and what constitutes high-quality IR. This is the first survey on the topic conducted in Canada.

Among the key findings, 98% of respondents from the investment community agree IR has an effect on a company's market valuation. Ninety-three per cent of investment community respondents claimed they would pay a premium for a company with more credible IR practices, with 69% indicating they would pay a premium of 10% or higher. Conversely, 67% of investment community participants said they would assign a discount of 10% or more to a company with less credible IR practices.

"The results of this survey clearly attest to the importance of a well-planned and executed investor relations strategy," said Craig Armitage, Senior Vice-President of Equicom. "Combining strong business fundamentals with effective communication practices - proper messaging, comprehensive disclosure, and a proactive approach to engaging the Street - can help an issuer achieve a premium valuation relative to peers."

Thirty-two per cent of respondents from the investment community ranked "timely and comprehensive disclosure" as the most highly valued aspect of an IR program. Ranking second and third were "accessibility of management and IROs in response to questions" and "commitment to transparency and candor."  When asked about communication tools, the investment community indicated that face-to-face meetings with management - through roadshows, investor presentations and Investor Days - were the most valuable.

The IROs who participated in the survey had similar views to the investment community.  Ninety-three per cent of IRO respondents believe investors will pay a premium for a company with more credible IR practices, with 72% of respondents assigning a premium of 10% or more.

"We have always believed that high-quality IR makes an impact and that the IR function is a strategically important one within public companies, and these results validate that view," said Tom Enright, CIRI President and CEO. "It is great to see the excellent work of our members is being recognized and rewarded by the investment community."

About the Survey
The Impact of Investor Relations on Valuation was an online survey conducted by TMX Equicom with the assistance of CIRI. The survey results include responses from 42 participants from the investment community and 43 investor relations professionals. The complete results of the survey can be viewed and downloaded at http://www.equicomgroup.com/survey/.

About The Equicom Group Inc.
The Equicom Group, a wholly-owned subsidiary of TMX Group Inc., is a leading Canadian provider of investor relations and strategic corporate communications services. With proven expertise in developing and executing highly effective strategic communications programs, and an extensive network of investment community contacts, Equicom specializes in helping clients achieve their capital markets objectives. Equicom offers a comprehensive suite of services including: investor relations, media relations, annual report production, multimedia and web design, live event management and corporate branding. Equicom is headquartered in Toronto, with offices in Calgary and San Diego.

About Canadian Investor Relations Institute (CIRI)
CIRI is a professional, not-for-profit association of executives responsible for communication between public corporations, investors and the financial community. CIRI contributes to the transparency and integrity of the Canadian capital market by advancing the practice of investor relations, the professional competency of its members and the stature of the profession. With 600 members, CIRI is the world's second largest society of investor relations professionals. For further information, please visit www.ciri.org.

SOURCE Equicom Group Inc.

For further information:

Craig Armitage
The Equicom Group Inc.
carmitage@equicomgroup.com
1 416-815-0700 extension 278

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Equicom Group Inc.

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CANADIAN INVESTOR RELATIONS INSTITUTE

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