SAN FRANCISCO - The Parnassus Fund, a manager of socially responsible mutual funds, is offering separate account management through Parnassus Investments, the funds' investment adviser.
Parnassus Investments, San Francisco, will manage domestic equity with the same social and environmental screens employed in the Parnassus mutual funds, said William Thomason, assistant portfolio manager. Mr. Thomason also will serve as client contact for the separate account product, which will be managed by portfolio manager Jerome Dodson.
Parnassus Fund manages $220 million in mutual fund assets in the Parnassus Fund, an equity fund, and the Parnassus Income Fund, which has three portfolios: balanced, fixed income and California tax-exempt.
The fixed-income separate accounts will mirror the fixed-income portfolio of the Parnassus Income Fund, which invests in all types of taxable bonds except junk bonds. For equities, separate account clients will have a choice of two strategies: one mirroring the Parnassus Fund, seeking growth of capital, or the Income Fund's balanced portfolio, seeking both growth and income. The approaches employ a contrarian value strategy seeking out-of-favor stocks and some growth stocks that are out of favor for temporary factors.
The firm will invest in companies that are sensitive to the environment, show good community relations and good equal employment opportunities, among other qualities. Additionally, it screens out investments in companies that produce weapons, alcohol or tobacco or are involved in nuclear power.
The firm is seeking clients among foundations and endowments, corporate pension funds and high-net-worth individuals, said Mr. Thomason. The minimum size for separate equity accounts is $1 million and $5 million for fixed-income accounts.
The fee schedule ranges from 100 basis points for the first $1 million to $5 million to 50 basis points on assets of more than $10 million in equity. For fixed income, the fees range from 50 basis points for the first $5 million to $10 million to 35 basis points on assets exceeding $10 million. All fees are negotiable.
Mr. Thomason said the firm is negotiating with two prospective clients, foundations that already are Parnassus mutual fund clients.