The investment objective of the Socially Targeted Investment Portfolio is to achieve both capital appreciation and current income by investing primarily in a diversified portfolio of large-cap equity securities using financial, environmental, social, and governance (ESG) criteria.
The Socially Targeted Investment Portfolio invests entirely in the Parnassus Core Equity Fund. In general, Parnassus Investments will choose to invest in companies that it believes will generate attractive risk– adjusted returns over the long term while taking ESG factors into account. The key criteria the investment team looks for in its company–specific investment process are: future relevancy of a company’s products or services, sustainable competitive advantages, quality management and attractive valuation. The Fund invests principally in undervalued Equity Securities of large– cap companies. At least 75% of the Parnassus Core Equity Fun’s total assets will be invested in Equity Securities that pay dividends. The remaining 25% of the Fund’s total assets may be invested in non–dividend paying Equity Securities. Up to 20% of the Parnassus Core Equity Fund’s total assets can be invested in foreign Securities (typically through American Depository receipts).
Responsible Investment Policy
Parnassus Investments conducts fundamental research to determine a company’s financial health and its business prospects, and also takes ESG factors into account in making investment decisions. By incorporating ESG factors into its fundamental investment process, Parnassus Investments often identifies risks and opportunities that the market may have ignored. Parnassus Investments looks for companies that respect the environment, treat their employees well, and have effective equal– employment–opportunity policies and good community relations. Companies also must have strong corporate governance policies and ethical business dealings. Parnassus Investments will not invest in companies that derive significant revenues from the manufacture of alcohol, tobacco, or weapons, companies that have direct gambling operations, and companies that generate electricity from nuclear power facilities. The spirit of these exclusionary screens is to avoid investment in companies with negative impacts that outweigh any potential benefits from their business activities.
The Socially Targeted Investment Portfolio invests entirely in the Parnassus Core Equity Fund. Because it invests entirely in an actively managed Fund it is subject to manager risk. The Portfolio is also subject to investment style risk. The Fund’s share price may change daily based on the value of its security holdings. Stock markets can be volatile, and stock values fluctuate in response to the asset levels of individual companies and in response to general domestic and international market and economic conditions. In addition to large–cap companies, the Fund strategy may invest in small– and/ or mid–cap companies, which can be more volatile than large–cap firms. Security holdings in the Fund can vary significantly from broad market indexes.View Parnassus Site — Socially Targeted Investment Portfolio
Average Annual Returns
Updated Monthly as of 12/31/2018
|1 Year||3 Year||5 Year||Since Inception Nov 2009|
|Socially Targeted Investment||-0.03%||8.83%||7.99%||11.73%|
|Socially Targeted Investment Benchmark||-4.48%||9.15%||8.37%||12.28%|
Returns are net of fees.
Socially Targeted Investment Portfolio’s Benchmark is a blended composite benchmark reflecting the asset strategic benchmark index components for each underlying investment manager, and an adjustment reflecting the administrative fee for the Portfolio:
|As of 1/15/2019||$ 27.49|
Portfolio Fee as of 11/30/2018
|Asset Management Fees||0.64%|
|Inception Date||Nov 2009|