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Su S um mm ma a ry r y
In order to proceed with starting Parsec International we are requesting an of USD
$400,000 by April, 2010. Our highest priority is returning our investor’s capital.
Market Success
Based on the attached financial projections, our research, our own personal experience, and careful scrutiny of the specific audience and area where we are focused, we are convinced that the market for Parsec International’s wealth management services will support the accomplishment of our goals and objectives.
We have built in specific means of measuring our effectiveness in our marketing efforts, engaged with strategic partners and reviewed regulatory requirements to support our success. The wealth management market is expected to grow quickly in Chinese tier-2 cities over the next 5 years. We fully intend to lead the industry in our market, establish and maintain the highest standards and position ourselves as the most knowledgeable and trustworthy wealth management stewards for Xiamen, China and other Chinese tier-2 cities.
We fully anticipate reaching our break-even point by beginning year 4 and profitability in just 4 years. Most profits will be distributed to investors as dividends.
Future Growth
Approaching our goals aggressively will allow us to build an even stronger position than indicated in this plan. Expansion to other Chinese tier-2 cities is foreseen after 5 years of operation. After establishing a tier-2 presence, Parsec International plans to eventually successfully penetrate the Chinese tier-1 markets of Shanghai, Beijing, Shenzhen or Guangzhou.
Parsec International is also committed to bringing superior wealth management services to outside China. Our business model supports moving to other nations with rapidly growing HNWI populations such as; India, Brazil, Mexico and other Latin American countries. Each country will be rigorously examined and considered for its potential profitability.
We are excited about the prospects of turning this business into a recognized contributor in our community, effectively meeting the needs of our clients, providing a dynamic place for our employees, limiting any effects to the environment and growing with our market as needs change.
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Can’t people do this all by themselves? Why do they need your wealth management services?
Sometimes they can and they often do. In fact, as indicated by The Boston Consulting Group, 28% of investors are “Self-Directors” and just want a bank to execute their investment decisions. However, the remaining investors are spilt between “Participators”
(48%) and “Delegators” (24%). The latter investors are where Parsec International concentrate marketing its services.
Why haven’t you raised money sooner?
Until now, we have been assembling our management team, developing our local market knowledge, surveying the Xiamen market, and making sure that Parsec International is fully compliant with regulations for raising capital.
What will Parsec International do differently?
None of our competitors in China are concentrating their wealth management services in Chinese tier-2 cities. There are also charging higher fees for “products” that they are selling to investors. Not one foreign fund manager value proposition is as unique as Parsec International’s. We do not receive any commissions for sales. We charge fees to align our interests with our clients. Our fees are lower than that of our competitors. We are breaking into geographic areas unexplored by our competitors, but rich in the HNWI population and growing. We are exploiting a first mover advantage, with competitive fees in an ever-expanding market.
What builds the most value in the Company?
By a long shot, our employees are the most important, builders, contributors and maintainers of the value of Parsec International. Parsec is therefore, committed to their growth and excellence. At Parsec International, employees will have opportunities to grow themselves through continued education, peer learning, six month “on campus”
learning with Parsec Financial in the US and other valuable employee benefits. Parsec International will position itself in the market as the one of the best employers to effectively, and strategically, attract “hard to find” talent in China.
Our clients are the reason for Parsec International’s existence and well-being. Clients will trust not only their money to Parsec International, but also their hard work, financial future, retirement, children’s education, inheritance and dreams. This trust is not given lightly and will be highly respected by Parsec International and her employees.
It is of prudential importance that we remain leaders in knowledge and experience in the US equity market and our fee structure remains intact. Parsec Financial has proven itself, year-after-year, as a top-notch wealth management firm and financial advisory embodying the philosophy of aligning itself with its clients. This alignment is, first and foremost, the secret to investment success. A fee structure, which guides us to look at investment through the eyes of our clients, but with the knowledge and experience of a successful firm, is what makes us different and what makes us the best.
Marketing is another serious value component. Therefore, our reputation, brand image
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and experience are all major components of long-term value. The size and quality of our customer base, our strategic alliances and marketing relationships are what investors and clients value. Apart from profitability Parsec International will position itself as an exemplary corporate citizen that is concerned about the environment and our local community. We are committed to both the environment and the local community through both our actions and donations of profits.
Invest in Parsec International
I believe in Parsec International and think that it has incredible potential built on an already strong foundation. As a wise investment, the Company provides a service to a population that is growing in both size and wealth. The opportunities have presented themselves and Parsec International has the tools necessary to completely serve China’s tier-2 cities with our proven wealth management capabilities.
We’ve got the people, knowledge, expertise and we’re ready—the world is waiting.
Thank you very much for considering investing in Parsec International.
Warm regards,
Meredith Hall Clinton President
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Su S up pp po or rt ti in ng g D Do oc cu um me en nt ts s
The documents that follow include supporting information relative to Parsec International’s research, background, management, and preparedness for operating this business successfully.
Komaiko,Richard. 2008. US Stocks Open to China Savers. Asia Times
Boston Consulting Group “Wealth Markets in China” The Beginning of the Race for China’s Rich. October 2008.
Caijing.com.cn “Funds Allowed in Wealth Management” Fan Junli, Zhang Bing, 04.12.2009
Caldwater Clients and Friends Memo. “PRC’s CSRC Oficially Permits Overseas Securities Investment by QDIIs”. 7.3.2007.
China International Fund JP Morgan at www.51fund.com
Christian Science Monitor, Economic Scene: China’s Investments Pose a New Global Challenge. September, 2009.
GT.news.com “China Expands Investment Scope for Offshore Wealth Management”.
Maurice Hoo. 3.18.2009.
http://www.chinamediaresearch.net/vol3no1/Article_11_Circ_audit_Zhao.pdf
http://www.doingbusiness.org/Exploretopics/startingbusiness/Details.aspx?economyid=4 2
http://www.shanghaiexpat.com/modules.php?op=modload&name=News&file=article&si d=1103752
Harvest Asset Management at www.jsfund.cn
Merrill Lynch-Capgemini World Wealth Report, Edition 10, 2008.
Merrill Lynch-Capgemini World Wealth Report, Edition 10, 2008.
Merrill Lynch-Capgemini Asia Pacific Wealth Report, 2008.
PriceWaterHouseCoopers “Foreign Fund Management Companies in China”. April 2009.
PriceWaterhouseCoopers, Singapore “66% of Foreign Invested Fund Management Companies in China Anticipate Significant Growth by 2012”. April 28, 2009.
Reuters. “Chinese Investment Funds Could Triple to $1 Trillion”. 9.2.2009.
Shorex. “China’s Wealth Management Market to Outpace Japan’s by 2015”. 4.30.2009 Taiwan Ministry of Economic Affairs, ECFA. 2009.
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The New York Times. “In Shift, Chinese Move More Money Overseas”. Christie Johnston. 2.2.2009.
Xianmen Municipal Government website http://english.xm.gov.cn/
Xiamen Investment Promotion Agency at http://www.xipa.com.cn/en/about.php