Parnassus Investments Named Best Equity Fund Group
2010 Lipper Awards, Small Fund Group Category
SAN FRANCISCO, California – April 26 , 2010
Parnassus Investments is honored to be the recipient of two Thomson Reuters Lipper Fund Awards for 2010. Lipper recognized Parnassus Investments as the #1 U.S. Equity Fund Group in the Small Group category. Fund management companies are considered "large" or "small" groups depending on whether they have assets under management in the United States of more or less than $34.5 billion, respectively. The Parnassus Workplace Fund, which invests in companies that have favorable work environments, received the award for best U.S. multi-cap core fund over three years.
Parnassus Investments, which oversees more than $3.7 billion in assets, is an independently owned investment manager based in San Francisco. The firm was established in 1984 with the mission of investing in good businesses that have high returns on capital, above-average growth prospects, ethical business practices and sustainable competitive advantages.
Jerome Dodson, Founder and President of Parnassus Investments, was present at the Lipper Awards ceremony on March 24, 2010 to receive the awards. In an article for Investment News, Jerome talked about the firm’s approach to value investing, independent research, and how environmental, social and governance (ESG) factors are included in the fundamental analysis of each company. Parnassus Investments has its own analysts who do quantitative and qualitative research, including reading reports, talking to company management and competition. “We’ve gained a lot of intellectual capital over the last 25 years,” Dodson says.
The five Parnassus Funds invested in U.S. equities range across market caps and risk levels. Listed in order of assets under management and including Lipper categorization, the Funds are: Parnassus Equity Income Fund (Equity Income), Parnassus Fund (Multi-Cap Core), Parnassus Small-Cap (Small-Cap Value), Parnassus Workplace Fund (Multi-Cap Core), Parnassus Mid-Cap Fund (Multi-Cap Core). Despite the market downturn, the equity-focused Parnassus Funds have experienced notable growth over the past few years. The organization believes this is a testament to a solid track record and excellent service.
"These award-winning funds are subject to an exacting methodology to distinguish the leaders from their competitors and are to be congratulated for delivering consistently strong risk-adjusted performance," said Tom Roseen, Lipper's research manager for the United States and Latin America at Thomson Reuters.
In calculating the awards, Lipper considered all open-end funds registered for sale in the United States in qualifying classifications. Awards were given to funds with a 3-, 5- and 10-year history as of the end of the evaluation year in equity, bond and mixed-asset Lipper U.S. classifications with at least 10 distinct portfolios. Both group and fund awards were calculated using Lipper's consistent return score, which reflects the funds' historic returns, adjusted for volatility, relative to their peers.
This is Parnassus Investments’ first time receiving the Lipper award for Best U.S. Equity Fund Group; the firm ranked 1st out of 162 companies, based on three-year history. The Parnassus Workplace Fund’s three-year performance ranked 1st out of 658 U.S. multi-cap core funds. Further information regarding the methodology behind the rankings can be found here.
1All returns greater than one year are annualized.
2The inception dates for the Parnassus Fund, the Parnassus Equity Income Fund–Investor Shares, the Parnassus Equity Income Fund–Institutional Shares, the Parnassus Mid-Cap Fund, the Parnassus Small-Cap Fund, the Parnassus Workplace Fund, and the Parnassus Fixed-Income Fund are 12/31/84, 8/31/92, 4/28/06, 4/29/05, 4/29/05, 4/29/05, and 8/31/92, respectively.
3As described in the Fund’s current prospectus dated May 1, 2009, Parnassus Investments has contractually agreed to limit the total operating expenses (exclusive of acquired fund fees and expenses) to 0.99%, 0.99%, 0.78%, 1.20%, 1.20%, 1.20% and 0.87% of the net assets of the Parnassus Fund, the Parnassus Equity Income Fund–Investor Shares, the Parnassus Equity Income Fund–Institutional Shares, the Parnassus Mid-Cap Fund, the Parnassus Small-Cap Fund, the Parnassus Workplace Fund, and the Parnassus Fixed-Income Fund, respectively until May 1, 2010. These limitations may be continued indefinitely by the Adviser on a year-to-year basis. Without these fee waivers and/or expense reimbursements, the Funds’ returns would have been lower.
With regard to the Parnassus Equity Income Fund – Institutional Shares, performance shown prior to the inception date of April 28, 2006 reflects the performance of the Parnassus Equity Income Fund - Investor Shares and includes expenses that are not applicable to and are higher than those of the Institutional Shares.
Performance data quoted represents past performance and are no guarantee of future returns. Current performance may be lower or higher than the performance data quoted, and the most recent month-end performance is available on the Parnassus Investments website ( www.parnassus.com ). Investment return and principal will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original principal cost. The Standard & Poor’s 500 Composite Stock Price Index (the S&P 500 Index), the Russell Midcap Index, and the Russell 2000 Index are widely recognized indexes of common stock prices. The Barclays Capital U.S. Government/Credit Bond Index is a widely recognized index of fixed-income security prices. An individual cannot invest directly in an index. An index reflects no deductions for fees, expenses or taxes. Returns shown for the Funds do not reflect the declaration of taxes a shareholder would pay on the fund distributions or the redemption of fund shares. Prior to March 31, 1998, the Parnassus Equity Income Fund was a balanced fund. Prior to May 1, 2004, the Parnassus Fund charged a sales load of a maximum of 3.5%, which is not reflected in the total return figures.
Common stock prices fluctuate based on changes to a company’s financial condition and on overall market and economic conditions. Small- and mid-cap companies can be particularly sensitive to changing economic conditions and have fewer financial resources than large-cap companies. Investments in fixed-income securities are subject to interest rate risk, credit risk and market risk, each of which could have a negative impact on the value of the Fund’s holdings.
Before investing, an investor should carefully consider the investment objectives, risks, charges and expenses of the fund and should carefully read the prospectus, which contains this information. A prospectus can be obtained on the website, www.parnassus.com , or by calling (800) 999-3505.