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Parnassus Lowers Fund Fees

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SAN FRANCISCO, CA, May 31, 2018

Parnassus Investments, the largest ESG mutual fund company in the United States with five actively managed equity and fixed income funds, reduced the fees charged for most of its strategies on May 1, 2018. The firm carefully manages fund expenses on an ongoing basis with an eye to delivering savings to its shareholders as part of its mandate to build wealth responsibly for long-term investors.

Most Parnassus funds already offered lower expense ratios than the average of their peers*—and the firm has now further reduced the following net expense ratios:

  • Both share classes of the Parnassus Fund fees were cut—the investor shares from 0.86% to 0.84% and the institutional shares from 0.71% to 0.69%.
  • Both share classes of the Parnassus Endeavor Fund fees were dropped—the investor shares from 0.95% to 0.92% and the institutional shares from 0.74% to 0.72%.
  • The Parnassus Core Equity Fund institutional share class fees were lowered from 0.66% to 0.64%.
  • The Parnassus Mid Cap Fund institutional share class fees were reduced from 0.80% to 0.75%.
  • The Parnassus Fixed Income Fund institutional shares fees were trimmed from 0.49% to 0.47%.
  • CEO Benjamin E. Allen commented that Parnassus “takes great care in managing our fund expense ratios so that we can pass on cost savings to our shareholders. Our goal is to serve our investors to the best of our abilities and being mindful about fees is an important part of delivering good value.

    Complete details about the fee reductions follow:

    Fund NameShare Class2017 Gross Expense Ratio2017 Net Expense Ratio2018 Gross Expense Ratio2018 Net Expense Ratio
    Parnassus FundInvestor0.86%0.86%0.84%0.84%
    Parnassus FundInstitutional0.71%0.71%0.69%0.69%
    Parnassus Endeavor FundInvestor0.97%0.95%0.92%0.92%
    Parnassus Endeavor FundInstitutional0.74%0.74%0.72%0.72%
    Parnassus Core Equity FundInstitutional0.66%0.66%0.64%0.64%
    Parnassus Mid Cap Fund*Institutional0.80%0.80%0.75%0.75%
    Parnassus Fixed Income Fund**Institutional0.50%0.49%0.49%0.47%

    About Parnassus Investments

    Founded in 1984, Parnassus Investments is a pioneer in socially responsible investments. Based in San Francisco, the firm invests responsibly to build wealth for its clients by selecting businesses that the investment team believes have increasingly relevant products or services, sustainable competitive advantages and quality management teams for their high conviction portfolios. Every investment must meet rigorous fundamental and environmental, social and governance (ESG) criteria.

    *Source: Morningstar, 4/30/18. Based on Morningstar’s category average expense ratios for 2017. All funds were below their respective category average, except for the Parnassus Endeavor Fund investor share class and the Parnassus Fixed Income Fund investor share class. The Morningstar Large Blend category average expense ratio is 0.89% (investor share class) and 0.74% (institutional share class). The Morningstar Mid-Cap Blend category average expense ratio is 1.05% (investor share class) and 0.89% (institutional share class). The Morningstar Intermediate-Term Bond category average expense ratio is 0.64% (investor share class) and 0.50% (institutional share class).

    **As described in the Fund’s current prospectus dated May 1, 2018, Parnassus Investments has contractually agreed to limit total operating expenses to 0.85% of net assets for the Parnassus Mid Cap Fund – Institutional Shares, and to 0.58% of net assets for the Parnassus Fixed Income Fund – Institutional Shares. This agreement will not be terminated prior to May 1, 2019, and may be continued indefinitely by the Adviser on a year-to-year basis. The net expense ratio is what investors pay.

    Mutual fund investing involves risk, and loss of principal is possible. Only funds with reduced expense ratios as of May 1, 2018 are listed. Please view the prospectus for a complete outline of all Parnassus Funds expense ratios.