Our Funds

Parnassus Fixed Income Fund

Objective:

High level of current income consistent with safety and preservation of capital.

Strategy

The Parnassus Fixed Income Fund invests principally in investment-grade debt securities which can include U.S. government obligations, corporate bonds, mortgage backed securities and pools, and convertible bonds. Under normal circumstances, the Fund expects to maintain an overall dollar-weighted average effective duration comparable to the benchmark. At least 65% of the Fund’s total net assets are 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% are in fixed-income securities with investment-grade ratings (i.e., rated at least BBB- or Baa3 or better), or of similar economic quality. The Fund also takes environmental, social and governance factors into account in making investment decisions.

Risks

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.

Fund Facts

Ticker PRFIX
CUSIP 701769200
Minimum Investment $2,000
Gross Expense Ratio 0.78 %
Net Expense Ratio* 0.68 %
Inception Date 8/31/1992
Fund Manager,
Since May 2013

Samantha D. Palm
Fund Strategy Intermediate, Investment-Grade
Lipper Category Corporate Debt A-Rated
Distribution Frequency Monthly
Total Net Assets $186MM

* Expenses based on total net assets, net of reimbursement.

Fund Characteristics as of as of June 30, 2014 Fund Barclays U.S. Aggregate Bond Index
Number of Holdings 83 8,818
Portfolio Turnover (2013 Annual) 35.2 % NA
Average Maturity (Years) 4.93 7.69
Average Duration (Years) 4.07 5.60
SEC 30-Day Yield1 as of 6/30/14 1.32 % NA
Unsubsidized SEC 30-day Yield2 as of 6/30/14 1.24 % NA
Fund Statistics (5 Year) as of as of June 30, 2014 Fund Barclays U.S. Aggregate Bond Index
Alpha

Alpha
A coefficient measuring risk-adjusted performance, considering the risk due to the specific security, rather than the overall market. A large alpha indicates that the stock or mutual fund has performed better than would be predicted, given its beta.

Info
-0.84 % 0.00 %
Beta

Beta
A measurement of a fund's trailing 36-month returns in relation with the market as a whole. A beta of 1 means that the share price moves exactly inline with the market. A beta over 1 suggests that the share price will typically be more volatile than the market, and conversely, a beta below 1 indicates that the share price will typically be less volatile than the market.

Info
1.05 1.00
R-Squared

R-Squared
A measurement of how closely the portfolio's performance correlates with the performance of a benchmark index such as the S&P 500.

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0.88 1.00
Sharpe Ratio

Sharpe Ratio
A ratio used to measure risk-adjusted performance. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.

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1.31 1.69
Standard Deviation

Standard Deviation
A calculation used to measure variability (risk) of a portfolio's performance.

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3.17 % 2.85 %
Downside Risk

Downside Risk
A statistical measurement of a portfolio’s dispersion below the mean return of a benchmark.

Info
1.71 % 1.50 %
Tracking Error

Tracking Error
The standard deviation of the difference between the portfolio return and the desired investment benchmark return.

Info
1.09 % NA

1 The 30-Day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days. It is a "subsidized" yield, which means it includes contractual expense reimbursements and it would be lower without those reimbursements.

2 The Unsubsidized 30-Day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days. It excludes contractual expense reimbursements, resulting in a lower yield.

As described in Fund's current prospectus dated May 1, 2014, Parnassus Investments has contractually agreed to reduce its investment advisory fee to the extent necessary to limit total operating expenses to 0.68% of net assets for the Parnassus Fixed Income Fund. This agreement will not be terminated prior to May 1, 2015, and may be continued indefinitely by the investment adviser on a year-to-year basis.

The Barclays U.S. Aggregate Bond Index is an unmanaged index of bonds. An individual cannot invest directly in an index. An index reflects no deductions for fees, expenses or taxes, but mutual fund returns do.