Parnassus Fixed Income Fund – Fund Fact Sheet as of December 31, 2015
Parnassus Investments
Description
Parnassus Fixed Income Fund
SM
Fourth Quarter 2015
All information, unless otherwise indicated, is as of 12/31/2015
Portfolio Manager
Samantha D. Palm
• Portfolio Manager
• With firm since 2013
• Investment industry since 2006
• Portfolio Manager since 2013
• B.S., Agricultural and Applied Economics, University of Wisconsin
2006
Fund Characteristics
Parnassus Investments is an independent and employee-owned
investment management company based in San Francisco, CA. Founded
in 1984, the firm seeks to invest in businesses that have increasingly
relevant products or services, sustainable competitive advantages, quality
management teams and ethical business practices. We believe the most
attractive opportunities for investments are when companies with good
business fundamentals become temporarily undervalued due to market
sentiment.
Total Assets Under Management: $15.6 billion
PRFIX
PFPLX
CUSIP
701769200
701765703
Minimum Investment
$2,000
$100,000
7.97
Gross Expense Ratio
0.78%
0.65%
4.59
5.68
Net Expense Ratio
0.68%
0.58%
1.97%
-
Inception Date
8/31/1992
4/30/2015
1.83%
-
Distribution Frequency
9,720
35.8%
-
Average Maturity (Years)
5.64
Average Duration (Years)
Portfolio Turnover (2015 Annual)
1
Unsubsidized SEC 30-Day Yield2
®
Ticker
104
SEC 30-Day Yield
Firm Overview
Institutional Shares
Barclays
U.S.
Aggregate Bond Index Number of Holdings 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. 1 Fund Statistics (5 year) Fund Facts Investor Shares Fund Investor Shares Barclays U.S.
Aggregate Bond Index Total Net Assets Monthly $189.9MM E xpenses based on total net assets, net of reimbursement. As described in the Fund’s current prospectus dated May 1, 2015, Parnassus Investments has contractually agreed to limit total operating expenses to 0.68% of net assets for the Parnassus Fixed Income Fund—Investor 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, 2016, and may be continued indefinitely by the Adviser on a year-to-year basis. Maturity Diversification Fund Barclays U.S. Aggregate Bond Index Alpha 0-3 years 19.5% 22.1% 0.88 1.00 3-5 years 2.1% 20.6% R-Squared 0.89 1.00 5-10 years 45.4% 42.2% Sharpe Ratio 0.84 1.19 over 10 years 33.0% 15.1% Standard Deviation 2.70% 2.71% Downside Risk 1.48% 1.43% Tracking Error 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. Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index.
The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1.00 means that the share price moves exactly in line with the market.
A beta over 1.00 suggests that the share price will typically - Beta3 3 -0.72% 0.93% - be more volatile than the market, and conversely, a beta below 1.00 indicates that the share price will typically be less volatile than the market. R-Squared is a measurement of how closely the portfolio’s performance correlates with the performance of a benchmark index such as the Lehman Aggregate Bond Index. Standard Deviation is a calculation used to measure variability (risk) of a portfolio’s performance.
Sharpe Ratio is 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. Downside Risk is a statistical measurement of a portfolio’s dispersion below the mean return of a benchmark.
Tracking Error is the standard deviation of the difference between the portfolio return and the desired investment benchmark return. Risks: Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. Security holdings in the Fund can vary significantly from broad market indexes. PARNASSUS INVESTMENTS® 1 Market Street, Suite 1600 San Francisco, CA 94105 www.parnassus.com (800) 999-3505 .
Aggregate Bond Index Number of Holdings 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. 1 Fund Statistics (5 year) Fund Facts Investor Shares Fund Investor Shares Barclays U.S.
Aggregate Bond Index Total Net Assets Monthly $189.9MM E xpenses based on total net assets, net of reimbursement. As described in the Fund’s current prospectus dated May 1, 2015, Parnassus Investments has contractually agreed to limit total operating expenses to 0.68% of net assets for the Parnassus Fixed Income Fund—Investor 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, 2016, and may be continued indefinitely by the Adviser on a year-to-year basis. Maturity Diversification Fund Barclays U.S. Aggregate Bond Index Alpha 0-3 years 19.5% 22.1% 0.88 1.00 3-5 years 2.1% 20.6% R-Squared 0.89 1.00 5-10 years 45.4% 42.2% Sharpe Ratio 0.84 1.19 over 10 years 33.0% 15.1% Standard Deviation 2.70% 2.71% Downside Risk 1.48% 1.43% Tracking Error 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. Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index.
The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1.00 means that the share price moves exactly in line with the market.
A beta over 1.00 suggests that the share price will typically - Beta3 3 -0.72% 0.93% - be more volatile than the market, and conversely, a beta below 1.00 indicates that the share price will typically be less volatile than the market. R-Squared is a measurement of how closely the portfolio’s performance correlates with the performance of a benchmark index such as the Lehman Aggregate Bond Index. Standard Deviation is a calculation used to measure variability (risk) of a portfolio’s performance.
Sharpe Ratio is 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. Downside Risk is a statistical measurement of a portfolio’s dispersion below the mean return of a benchmark.
Tracking Error is the standard deviation of the difference between the portfolio return and the desired investment benchmark return. Risks: Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. Security holdings in the Fund can vary significantly from broad market indexes. PARNASSUS INVESTMENTS® 1 Market Street, Suite 1600 San Francisco, CA 94105 www.parnassus.com (800) 999-3505 .
