let's talk about ir pr in the investment community!

Webinar:Let'stalkaboutIR&PRintheinvestmentcommunity!

PatriciaBaronowski-SchneiderFounderandPresidentPris.neAdvisers

Patriciahasover25yearsintheInvestorRela.onsandPublicRela.onsfield.Sheimproveexternalrela.onshipswithclients,enhancemarketability,andeffec.velymanagestheflowoffinancialandpublicinforma.onamongclients,shareholdersandthefinancialcommunity.Shehasastrongtalentforclearlycommunica.ngfinancialinforma.onandbusinessstrategiestoavarietyofaudiences.

Let'stalkaboutIR&PRintheinvestmentcommunity!

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AreIR/PR/Marke.ngthesame?IalwaysliketosayabigNO

Investorrela.ons(orIR)isaspecificsub-disciplineofpublicrela.onsthatrevolvesaroundhowacompanycommunicateswithinvestors,shareholders,governmentauthori.es,andthefinancialcommunity.

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ThePrimaryGoalofInvestorRela.ons•  Ensurethatfinancialmarketsaccuratelyvaluethecompany’s

assets,expecta.onsandfutureearningsandcashflows•  Maintainfavorableaccesstocapitalmarkets•  Maintainmarketliquidityunderallcondi.ons•  InformmanagementandBODaboutdevelopmentsin

financialmarketsandpercep.onsofinvestors•  Enhancemanagement’sunderstandingofpeer’s

performance,strengthsandstrategies•  Maintainopencommunica.onsandcredibilitywithinvestors,

employees,customers,suppliersandcommuni.esinwhichthecompanyoperates

•  Ensureconsistencyofcommunica.onswithrelatedcons.tuenciesandthetrade,financialandgeneralmedia.

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KeyElementsofanIRPlan–Tac.c-Driven

1.  AnalystContact/AnalystMee.ngs2.  Budget3.  CrisisCommunica.onsPlan4.  FactSheet/FactBook5.  InvestorContact(ongoing)6.  InvestorRela.onsKit7.  MediaLists8.  PhotoArchives9.  PressReleases(asneeded)10.  Rela.onshipwithSpecialtyFirm/MarketMakers11.  Rela.onshipswithOutsideVendorsandConsultants12.  Website

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KeyElementsofanIRPlan–Strategy-Driven

1.  AnalystDay2.  Benchmarking3.  BrokerContact4.  Compe..ve/IndustryAnalysis5.  CorporateGovernance6.  DisclosurePolicies7.  EmployeeCommunica.ons8.  Individua;InvestorProgram9.  Industry/InvestorConferences10.  MarketIntelligence11.  Sell-sideOutreach12.  Targe.ng

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InvestorRela.ons

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AreIR/PR/Marke.ngthesame?(cont)

Publicrela.onsisastrategiccommunica.onprocessthatbuildsmutuallybeneficialrela.onshipsbetweenorganiza.onsandtheirpublic.

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AreIR/PR/Marke.ngthesame?(cont.)

MarkeEng• Managementprocessthroughwhichgoodsandservicesmovefromconcepttotheinvestor.• Itincludesthecoordina.onoffourelementsofmarke.ng:• (1)iden.fica.on,selec.onanddevelopmentofaproduct,• (2)determina.onofitsprice,• (3)selec.onofadistribu.onchanneltoreachtheinvestor,and• (4)developmentandimplementa.onofapromoEonalstrategy.

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Inanutshell•  Iliketobreakitdownas•  “IR”iscommunica.ngwiththeinvestmentcommunity(currentshareholders,poten.alshareholders,analysts,brokers)

•  “PR”iscommunica.ngwiththepublicasawhole(adver.sing,mediarela.ons,events,webinars,etc.)

•  “Marke.ng”isyourplanonhowyouexecutetheabovetwo–yourplantoensurethatwhateveryouarepresen.ngtoyourinvestorsandpublicaredonesoinafashionthatbestsuitsyourgoals

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MediaRela.ons

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5AdvantagesThatFlowfromConsistentInvestorCommunicaEons

Consistentandthoroughinvestorcommunica.onshaveanumberofimportantadvantages,including:• Forceaccountability:Investorrela.onsandcommunica.ons,suchasmonthlyandquarterlyreports,willkeepexecu.vesaccountabletothemselvesandtoinvestors.• Encourageevalua2on:Therepor.ngcomponentsofinvestorcommunica.onsensurethatexecu.vesareconsistentlyevalua.ngthemselvesandthecompany.• Leveragerela2onships:Stronginvestorrela.onsmakeitmorelikelythataninvestorwillbeabletoiden.fypoten.alareasofgrowth,partnerships,ornewbusinessangles.Companiesbenefitwheninvestorsareac.veadvocatesforthemandcanusetheirrela.onshipstohelpthecompany.• Securenewinvestors:Arecordofstronginvestorrela.onsandadocumentedhistoryofthecompany’sperformance,whichareoutlinedininvestorcommunica.ons,willakractnewinvestors.• Buildinfrastructure:Actlikeabigbusinessandyouwillbecomeabigbusiness.Investorrela.onsandrepor.ngareimportantinfrastructurecomponentsforlargercompaniesandyoushouldstartdevelopingthisinfrastructureearly.

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Sowhatshouldyoudo?

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AdvantagesofPublicRelaEonsPublicrela.onshasthepowertoreachalargeaudience,givingyourbusinesstheplalormitneedstoreallyshineandallowsyoutoakachcredibilitytoyourproductorcompany.1. Credibility--Havingcredibilityissoessen.altoasuccessfulbusiness.BecausePRandadver.singareverydifferentthings,consumersarelikelytogivecredibilitytoyourbusinesswhentheyseeitmen.onedinthemedia(uncompensated!)comparedtowhentheyseeyouradsorbillboards.StudiesshowthatPRhas7.mesmorecredibilityamongconsumersthanadver.sing!

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AdvantagesofPublicRelaEons(cont)

2.TargetMarket--Mediasourcescanplacetheinforma.onthatisrightuptheconsumersalleyandgivethemtherequiredinforma.ontheyneed.3.Cost--Whileit’struethatPRcanbecostlyifyouhirethewrongfirm,consideringthecostofotherpromo.onaladver.sing,itisonthecheapendofthescale.WhenyoustepbackandlookatthecostofPRconsideringthepossibleleadswhenreachingtherightmarket,you’llfindthatthecostisverybeneficial.

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4.LeadGenera2on--ThemediaplacementthatyoureceivefromPRislonglas.ng.You’lllikelyhaveanini.alfloodofleads,andthenas.mewhereson,you’llno.cethatthereiss.llthepossibilityofleadgenera.onfromjustonegoodmediamen.on.AspeopleandbusinessesstumbleonthePR,itwills.llbeeffec.veatgenera.ngleads(thusleadingbacktoour#3point:cost).

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5.Image--PRisn’tjustpromo.nganitemoraspecial.PRtakesyouren.rebusinessandputsitinthelights.Thishelpscreateanimageofyourcompanyandcreatesthepossibilityofamorewellroundedpatronage.Effec.vePRleavesyourcompanywithaposi.veimage,whichisalwayshelpfulinthefuture

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10ContentMarkeEngBenefits•  Increasesvisibilityofyourbrand•  Developslas.ngrela.onshipswithyouraudience•  Improvesbrandawarenessandrecogni.on•  Createsloyaltyandtrust,withbothyourcurrentcustomersand

prospects•  Helpsyoutobuildauthorityandcredibility•  Posi.onsyourbusinessasanexpertinyourindustry•  Generatestraffictoyoursitetoimproveleadgenera.on•  Opensachannelofcommunica.onthroughsocialsharesand

comments•  Helpsyourcustomermovethroughthepurchasedecisionmore

quickly•  Providesvaluewithnostringsakached

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SocialMedia–thedreadedword“We’llbeoutofcompliance”iss.llthemajorreasonthatfinancialservicesfirmsblocktheuseofsocialmediaforregulatedusers.However,thatfeariscontrarytotheevolvingregulatorylandscape.BoththeSecuri.esandExchangeCommission(SEC)andFinancialIndustryRegulatoryAuthority(FINRA)statethattheyseeavalueinsocialmediaasaneduca.onaltoolforinvestors.Thisapprecia.onforsocialmediawasreinforcedrecentlyattheLIMRA/LOMA2014SocialMediaConferenceforFinancialServices,atthe“AsktheRegulators!”session.OwenDonley,ChiefCounsel,OfficeofInvestorEduca.onandAdvocacy,SECandThomasSelman,SeniorVicePresident,FINRAdiscussedhowtheirrespec.veorganiza.onsseektoprotectinvestorsandgenerallyviewsocialmediainaposi.velight.hkp://www.forbes.com/sites/joannabelbey/2014/09/03/yes-finra-and-the-sec-like-social-media/#5a73d2c112ce

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SocialMedia–thedreadedword

Theuseofsocialmediabythefinancialservicesindustryisrapidlyaccelera.ng.Ingrowingnumbers,registeredinvestmentadvisers(“RIAs”or“firms”)areusingsocialmediatocommunicatewithexis.ngandpoten.alclients,promoteservices,educateinvestorsandrecruitnewemployees.PursuanttoAdvisersActRule206(4)-7,3firmsusingsocialmediashouldadopt,andperiodicallyreviewtheeffec.venessof,policiesandproceduresregardingsocialmediainthefaceofrapidlychangingtechnology.hkps://www.sec.gov/about/offices/ocie/riskalert-socialmedia.pdf

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SocialMedia–thedreadedword

•  SocialMediaandInvesEng

SocialmediaandtheInternetingeneralhavebecomeimportanttoolsforinvestors.Investorsmayusesocialmediatoresearchpar.cularstocks,lookupbackgroundinforma.ononabroker-dealerorinvestmentadviser,findguidanceoninves.ngstrategies,receiveup-to-datenews,anddiscussthemarketswithothers.

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SocialMedia

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SocialMediaBenefits

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SocialMediaBenefits

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Whatshouldtherela.onshipbebetweenPRorIRandaninvestmentfund?

Eitherisintegraltogivingafundavoiceoraniden.ty-apresenceinthemarketplacethatgoesbeyondtheopeningandclosingbell-socurrentandprospec.veinvestorscandis.nguishthisorthatfundfromthecompe..on.Putadifferentway,silenceisnotanop.on;whichistosay,withoutPRorIR-withoutameansofar.cula.nganideaorlayingclaimtoanovelapproachtoinves.ng-yourtargetaudiencehasnoreasontoknowyouexist;theyhavenocausetoknowanythingabouttheindividualstrengthsafundorcompanypossesses,norwilltheywanttoinvestinsomethingthatseemstooforeign,abstractorremote.

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Howdoyouquan.fythevalueorROIofPRorIR?

Bywayofexample,acoverstoryinamajormagazine-orasegmentonatopfinancialTVshow-is,forallintentsandpurposes,free.Comparethatwithadver.singforsimilarspaceorcommensurate.mewiththesamevenue-theadver.singcostsaretens,ifnothundredsofthousandsof,dollars-whereyourmessagehasnoneofthesamecredibility.Youcancalculatethatexpensedowntothelastcent;butthereisanincalculablevalue,too,whichaccruestobusinessesthattransformthemselvesintobrands.Abrandresonateswiththepublicinapowerfulway,makingacompany'sperceivedvalue-indeed,itsactualvalue-allthemoreworthwhile.

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WhyisPRorIRanecessity?

Withoutit,toreiterateanearlierpoint,youcedegroundtothecompe..on;youforfeitpoten.alinvestorstothecompe..on,thusenablingthemostvocalfundorCompany-whichmaynotnecessarilybethebestfundorCompany-toincreasetheamountofmoneyithasundermanagement.Thatscenarioisunacceptable.

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WhataretherisksofnothavingaPRorIRstrategy?

Shouldacrisishappen,beitatemporarysetbackwithyourfundorCompany—ordamageduetospecula.on,rumorandinnuendo,youhavenoprograminplace-youhavenoprofessionalsattheready-toreversethispossibleexit,byinvestors,orcorrectthismisinforma.on,bythepress.

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Andfinally,howshouldPRorIRhelpinvestors?

Itshouldclarifyessen.alinforma.on,crystallizeintelligenceintointelligiblecontentandconvertotherwiseabstractdataintoaccessiblematerial.Insomanywords:Giveinvestorssomethingtheycanuse,somethingthathelpsbekerunderstandtheadvantages-andreasonstoinvest,ortocon.nuetoinvest-inyourfundorCompany.

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ProvenResultsThesearejustsomeresultsfromourclientIR/PR/MarkeEngPrograms

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PrisEneAdvisers:CallToday631-756-2486

Orvisitusonlinewww.PrisEneAdvisers.com

let's talk about ir pr in the investment community!

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