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Community Development
At Parnassus Investments, part of our responsible investment philosophy means investing
back into our community. Up to 2% of the Parnassus Funds' assets may be invested with
community development financial institutions (CDFIs) which offer credit, capital,
and financial services to individuals and organizations engaged in work that benefits
low-income communities.
We are cognizant of investing shareholder dollars profitably and responsibly. When
we consider investing in a CDFI, we look at how much that institution has impacted
a community as well as how conscientious they are when choosing to finance individuals
and organizations. The following are examples of CDFIs that we invest in:
MicroVest
The MicroVest family of funds links capital markets to the entrepreneurial poor
by funding select microfinance institutions in emerging markets. MicroVest embraces
a market-oriented approach to development and has made loans and investments in
dozens of institutions worldwide. MicroVest is headquartered in the Washington,
D.C. metropolitan area and was founded by CARE, MEDA and the Seed Capital Development
Fund, three non-profit organizations with longstanding reputations for excellence
in microfinance.
Community Bank of the Bay
Community Bank of the Bay (CBB) is a community bank with offices in Oakland, Danville
and San Jose, California. CBB is dedicated to meeting the financial needs of small/medium
businesses, professional service firms and non-profits. As a locally owned and operated
community bank, CBB is invested in the economic vitality and community spirit of
the communities it serves. Deposits made at CBB remain within the community, providing
loans to local businesses. CBB brings value to clients by understanding the local
markets as well as having broad industry knowledge. CBB focuses the majority of
its efforts and resources towards stimulating the local economy and improving the
quality of life in the East Bay and South Bay.
Latino Community Credit Union
Latino Community Credit Union (LCCU) is a community based and member-owned non-profit
financial institution offering bilingual financial services, better credit options,
and financial education to the North Carolina Latino community and other people
without previous experience using a financial institution. Founded in 2000 as a
grassroots response to a wave of robberies and muggings of Latino immigrants in
Durham, North Carolina, LCCU has become a national model for credit unions and community
development financial institutions seeking to serve unbanked, immigrant communities.
Root Capital
Root Capital strives to offer affordable financing to rural enterprises located
Latin America, South America, and Africa whose business activities cultivate economic
development and environmental conservation. This organization is able to invest
in areas that are economically volatile because of its lender criteria that the
borrower must have an established relationship with green market purchasers, ensuring
that risk of default is minimized.
Boston Community Capital
For Boston Community Capital, healthy communities can be identified as those that
have organizations that provide its residents with quality services such as affordable
housing, childcare, and healthcare services. Boston Community Capital recognizes
that these crucial services are often lacking in low-income communities, and its
mission is to transform such areas into healthy communities.