Our Funds

Parnassus Fixed Income Fund

Change Share Class: View Institutional Shares

Institutional Shares
Institutional Shares are generally for institutional investors and have a minimum investment of $100,000. Institutional Shares are available to investors who invest directly in the Fund as well as those who invest through certain intermediaries. The minimum initial investment may be waived for group retirement plans. Please see the prospectus for more details.

Investor Shares
Investor Shares are generally for individual investors have a minimum investment of $2,000, which may be reduced to $500 for IRAs and certain custodial accounts. Please see the prospectus for more details.

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Investor Shares

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
Share Class Assets $184MM
Total Net Assetsa $187MM

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

Fund Characteristics as of 6/30/15 Fund Barclays U.S. Aggregate Bond Index
Number of Holdings 95 9,496
Portfolio Turnover (2014 Annual) 52.6 % NA
Average Maturity (Years) 5.67 7.87
Average Duration (Years) 4.67 5.63
SEC 30-Day Yield1 as of 8/31/15 1.77 % NA
Unsubsidized SEC 30-day Yield2 as of 8/31/15 1.67 % NA
Fund Statistics (5 Year) as of 6/30/15 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.

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-0.88 % 0.00 %
Beta3

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.

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0.91 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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0.79 1.18
Standard Deviation

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

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3.00 % 2.82 %
Downside Risk

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

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1.72 % 1.52 %
Tracking Error

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

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1.06 % NA

aTotal net assets represent the combined assets of Institutional Shares and Investor Shares.

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.

3 The beta shown for the benchmark is a blended five-year calculation including the Fund’s prior benchmark, Barclays Capital U.S.Government/Credit Bond Index, prior to May 1, 2013 and the current benchmark, Barclays U.S. Aggregate Bond Index thereafter.

As described in the Fund's current prospectus dated May 1, 2015, 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-Investor Shares. This limitation continues until May 1, 2016, and may be continued indefinitely by the 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.