國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
ECFA to operate a profitable business. However, Parsec International will position itself to take advantage of the enormous implications such an agreement would entail on both a macro and micro level.
Parsec International is perpetually keeping abreast of all legal and regulatory issues facing Cross Strait relations and the Chinese financial regulatory environment. We will actively design scenario plans for all relevant possibilities.
Elements of Risk
Below is a table depicting a subjective set of potential risks. We acknowledge the degree of each risk on a scale from 1 to 10, its weight as a percentage of all of the potential risks, then we multiply to arrive at a total risk factor to give you an idea of the magnitude and affect each risk has on our business:
Degree of Risk Weight Total Risk
(1-10) (%) Factor
Business Risk
Cost Structure 1 2 % .02
Competition 3 6 % .18
Industry Growth 1 2 % .02
Profit Margin 5 11% .55
Complementary Industry 8 17 % 1.36
Substitution 8 17 % 1.36
Customers 4 9 % .36
Personnel & Management 8 17 % 1.36
Environmental Risk
Economic 4 9 % .36
Weather 1 1 % .01
Legal & Government 4 9 % .36
Overall Risk 47 100% 5.94
Rationale
As you can see, the greatest risk Parsec International faces is in the area of Personnel &
Management, Substitution and Complementary Industry.
We plan to reduce personnel risks by having unconventional talent management practices.
Cited often in PWC literature is the fact that “good help is hard to find” in the Chinese wealth management industry. We don’t underestimate the overwhelming demand for wealth management professionals in China. However, Parsec International believes that
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
______________________________________________________________________________________
many of our talent can be recruited from outside the wealth management industry. We will be constantly searching for the talents necessary that make up a fantastic financial advisor that fits with our company culture. Parsec International will also take the time and effort to carefully groom each talent by training them at Parsec Financial’s Headquarters in the U.S. for at least six months.
Parsec International is also a smaller organization, looking only to initially employ four members in China, only one financial advisor will be Chinese local talent, two employees will be from Taiwan and the President from America. Big banks like JP Morgan need to capture their talent with a net, while Parsec International can take the time to hunt and pinpoint the exact talent we desire.
Parsec International also offers employee policies that other fund management companies do not, these include; a month of vacation, unlimited sick days, leaving the office earlier than 6 pm (unless necessitated by project concerns), private company stock options, encouragement to grow and expand, six-month training in the US at our Charlotte or Ashville offices and regular feedback with motivation and one-on-one weekly meetings.
To readily compete with complementary products and substitutions, we will manage wealth with lower fees, better services and with a proven track record of investing in American equities for almost 30 years. In the States, Parsec is able to consistently offer superior wealth management services, at always a lower price, in an industry otherwise saturated with asset management firms. China is a new, rapidly growing wealth management industry that holds a unique first-mover advantage in tier-2 cities which provides an environment rich for success and profitability.
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
C C o o m m p p a a n n y y O O v v e e r r v v i i e e w w
Bart Boyer founded Parsec Financial in 1980, when he began investing into the US stock market. Because his investment knowledge and past performance were popular with professionals that did not have enough time to research their own investments, Bart Boyer moved from a workshop in his home, to a larger space located at 6 Wall Street in Ashville, North Carolina. A further office expansion included a Charlotte branch in 1999.
Parsec now employs 13 specialized financial advisors, including Bart Boyer, who researches and decides on each new investment for Parsec Financials customers. The great majority of customers that Parsec services are business owners and doctors whom require their wealth management and investments to be of the utmost top quality, professional, well planned and profitable.
After 29 years in the fee-only wealth management industry, Parsec Financial CEO Bart Boyer had been actively seeking to expand his knowledge and expertise of portfolio management into new territories. China’s profitable wealth management market was first brought to Bart’s attention after Bart’s niece, Meredith Clinton, a student at the time living in Taiwan and studying at Cheng Chi University, alerted Bart about this momentous opportunity.
After studying her MBA at Cheng Chi University and learning in-depth about the exploding Chinese market, Meredith realized the immense possibilities that could result from the growing number of the Chinese HWNI and Emerging-HNWI populations.
Meredith knew that not many wealth management firms in Asia were fee-only financial firms like her Uncle’s. She also knew that Chinese customers would benefit from a US firm with remarkable knowledge in wealth management, a field where her Uncle had already proven successful for almost thirty years.
Thinking that there must be a high demand for international portfolio management, Meredith began researching and speaking with her Taiwanese HNWI clients to gage attitudes towards investing in US equity markets as a complementary product to their Taiwanese domestic investments. Having found potential investors interested in investing Parsec Financial, Meredith began working with the widely respected Professor Chow of Cheng Chi University to formulate a plan to introduce Parsec Financials’ wealth management services into China’s tier-2 cities under the name “Parsec International”.
Parsec International’s founder, Meredith Clinton, dedicated six months to highly-focused research and market analysis, drawing on forecasts and statistics from industry analysts Capgemini, Mckinsey, The Wall Street Journal, The Boston Consulting Group, PricewaterhouseCoopers and multiple government sources, articles and publications covering the Chinese wealth management market.
In 2010, Parsec International plans to secure the proper licensing and began the process
‧ 國
立 政 治 大 學
‧
N a tio na
l C h engchi U ni ve rs it y
______________________________________________________________________________________
of Chinese expansion. Parsec International will open a branch in Xiamen China serving the HNWI, Emerging-HNWI and Mass Affluent Markets looking to diversify their Chinese domestic portfolios with US equities.
Considerable growth in the wealthy demographic of China has created a rapidly increasing demand for wealth management services that extend into China’s tier-2 cities.
With not a single company available in China’s tier-2 cities to meet wealth management needs, Parsec International is poised to take a front-runner position in Xiamen. As Parsec International’s business and profitability grow there will be room to expand into other Chinese tier-2 cities.
Parsec Financial, through Parsec International, is excited to have this opportunity to apply its wealth management knowledge and 30 years of experience to meet the needs of HNWI clients living in Xiamen. At the same time, Parsec International is willing to step out of tier-1 cities and into a smaller under-served market; just as Parsec Financial did almost 30 years ago.