Parker/Hunter Asset Management employs a conservative approach to investment management. We recognize clients want competitive investment returns, but we also understand we are expected to manage risk. Our investment philosophy and strategy can be broadly summarized as follows:

1) Asset allocation, the strategic decision determining the proportion of stocks, bonds and cash in a portfolio, establishes the fundamental tradeoff between risk and reward. Historically, stocks have generated higher total returns over time than bonds, but with much greater volatility or risk. Bonds historically have offered more predictable current income and returns, but at the expense of somewhat lower expected rewards. We avoid market timing, which is defined as a radical shift in the asset allocation strategy, because we believe it is difficult to execute with measurable success.

2) Diversification by sector, size, geography, and style all serve to reduce risk whether in the equity or fixed income market. We believe, however, value can be added by overweighting or underweighting different market components as economic assumptions change.

3) Fundamental analysis, leading to individual security selection, is another opportunity to add value. We employ a disciplined approach to both the equity and fixed income selection process.

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