How We Invest

Sell Discipline

For the Parnassus Investments equity funds, we will sell out of a position entirely if there is significant narrowing in the company's competitive advantage, if we think the company's product or service will be less relevant in the future than it is now, or if there is serious deterioration in management or environmental, social and governance (ESG) factors. More often than not, we sell for valuation reasons. By constantly monitoring the criteria of our investments, we ensure that we have just as much discipline when we sell as when we buy.

For the Parnassus Fixed Income Fund, we will sell out of a position entirely if we think yield spreads have reached our targeted level. We will also exit a security or asset class if there is a significant change in our economic outlook, which would lead us to adjust the portfolio's duration or yield positioning. We will fully exit a corporate bond position if there is significant narrowing in the company's competitive advantage, if we think the company's product or service will be less relevant in the future than it is now, or if there is serious deterioration in management or environmental, social and governance (ESG) factors.