High level of current income consistent with safety and preservation of capital.
The Parnassus Fixed-Income Fund invests principally in investment-grade debt securities
including U.S. government obligations, corporate bonds and convertible bonds. Under
normal circumstances, we expect to maintain an overall dollar-weighted average effective
duration comparable to the benchmark. We actively invest at least 65% of the Fund’s
total net assets in fixed-income securities that are rated “A” or better by Moody’s
Investor Services, Inc. or Standard & Poor’s Rating Group, and at least 80% in fixed-income
securities with investment-grade ratings (i.e., rated at least BBB- or Baa3 or better).
The Fund also takes environmental, social and governance factors into account in
making investment decisions.
The Fund’s share price may change daily based on the value of its security holdings.
Bond prices are inversely related to interest rates. As interest rates drop, bond
prices will increase, and as interest rates go up, the value of bonds will decrease.
A security’s value may also be affected by the possibility that issuers of debt
obligations will not pay the Fund interest or principal, or that their credit rating
may be downgraded by a ratings agency. In addition, up to 20% of the Fund’s total
net assets may be invested in convertible securities, which may not have an investment-grade
rating. This would make them riskier than securities with an investment-grade rating.