Maintaining Financial Consistency Throughout the Inconsistency of Life

The past few years have reminded us all that life ultimately charts its own course with unexpected ups and downs. It also taught us that maintaining control with sound financial planning enables life’s bumps to be less turbulent. Attaining financial security isn’t just about successfully managing day-to-day finances – it impacts the long-term emotional, physical and mental well-being of you and your loved ones. Everyone deserves the ease-of-mind that comes from attaining financial security. Let us be your financial partner and take this journey together to build a consistent financial road map that successfully navigates you through the inconsistency of life.

Parsec's Financial Planning Process

1. Understand you

Understanding your values, motivations and goals provides a starting point for our journey and sets the stage for a long-term relationship built on trust and mutual respect.

2. Chart your course

Helping you realize your goals means creating a plan for all of your assets, not just the ones inside of your portfolio.

3. Empower your journey through life’s stages

Delivering an exceptional experience along this journey is our first priority. To ensure that happens, we will:
  • Pair you with an onboarding concierge to ensure a seamless transition for the administrative aspects of our journey.
  • Provide regular team reviews delivering advice, planning and investment strategies from our credentialed professionals.
  • Arm you with technology that delivers security and insight to your financial situation so that you’re never in the dark.
  • Deliver timely and informative educational content and events to enrich your Parsec experience.

Parsec's Investment Process

1. Choose an allocation that suits your risk/return profile

  • Discuss and evaluate your financial goals
  • Review your risk tolerance
  • Establish an IPS/plan/path

2. Allocate equities among large-, mid and small-cap assets; diversify fixed income

  • Set target weights for portfolio components
  • International, domestic, growth, value, sectors

3. Complete a bottom-up analysis of individual securities and funds

  • Valuation
  • Balance sheet strength
  • Growth projections
  • Fund alpha
  • Fund expense ratio

4. Monitor and rebalance

  • Rebalance periodically to target allocation
  • Sell overvalued or deteriorating securities
  • Add new ideas to portfolio

You might wonder how we choose and monitor the investments in our clients’ portfolios. Because we value transparency, we would like to shed some light on how we make these decisions and give you some insight into investment management at Parsec.

When it comes to our investment management philosophy, fundamental analysis is at the forefront of our process. Indicators such as price-to-earnings ratios, dividend yield and payout ratios, and profitability ratios provide vital information that help us make an informed decision. We include a variety of companies from the 11 S&P sectors, which divide the broad market into groupings such as energy, health care, technology, and so forth. Within each sector, we look for companies that are somewhat different from one another in order to increase diversification. Diversification provides a benefit to your portfolio, as it has been shown to enhance return while limiting risk. The reason for this is that the stocks of different companies (and different sectors) don’t move in tandem, so negative movement in one area of the market can be cushioned by positive movement in another area of the market. It is important to maintain exposure to different areas of the market simultaneously in order to mitigate volatility.

We do not rely on any one source of information, but instead gather data from a wide variety of resources in an attempt to gain a well-rounded view of a security. We consider expected and historical industry trends as well as economic projections as part of our holistic investment decision-making process. We consult outside research from a variety of highly reputable providers, including FactSet, CFRA, Credit Suisse, Argus, and Value Line. Once selected, we continue to monitor these securities regularly, yet are very careful about making sudden changes. This is because our investment philosophy embraces a long-term approach, one that avoids the temptation of acting emotionally. The market has shown that sometimes one of the best investment decisions you can make is to do nothing.

Our research committee (which reports to the investment policy committee) meets regularly to review the research and discuss portfolio composition. We carefully consider a multitude of both positive and negative attributes for each security and engage in discussions where numerous points of view are considered. In addition, when we discuss making a change we carefully consider the ramifications. A key focus is placed on portfolio stability as well as composition and diversification. Following the research committee meeting, the entire investment team (including portfolio managers, research analysts and our trader) meets to recap the research and discuss any changes that they may make in clients’ portfolios.

As you can see, we strive to continually craft and refine our investment management approach that will enable you to reach your financial goals. We are your steadfast partner in this endeavor. Thank you for your trust in Parsec.

Parsec's Investment Pillars

Long-term investing

Due to the uncertainty of security prices, we firmly believe that investing in a given asset class should be done over a long-term time frame, preferably longer than 10 years. This is critical to investment success because it allows the longterm characteristics of the asset classes to surface. Short-term portfolio spending needs are considered in the long-term asset allocation decision.

No market timing

We strongly believe that investors should not engage in market timing. This includes timing the purchase or sale of investments based on the news of the day, as well as giving up on the market as a whole and sitting out for periods of time until things “look better.” Though tempting, timing the purchase or sale of securities based on an attempt to guess which direction the market will go is highly unlikely to increase long-term investment returns.

Broad Diversification

Diversification is vital to the portfolio management process. We believe the design and diversity of the portfolio as a whole are more important than the selection of any particular security. Our diversification strategy is to create a portfolio consisting of a combination of growth and value companies; large, medium and small companies; as well as international companies, which may include emerging markets. The fixed-income investments are also diversified.

Hear Us Explain Our Processes:

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Using Our 43+ Years of Excellence to Help You Thrive

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