Parnassus Growth Equity Fund: Sustainable Investing & Strong Returns

Apr 22, 2024 | Uncategorized

Dear Green Investment Strategies Community,

This week, we’re excited to shine a spotlight on one of the investment funds we’re proud to partner with: the Parnassus Growth Equity Fund. Launched on December 28, 2022, with current assets under management (AUM) of $44 million, this fund is relatively new but, despite its limited track record, gives us several good reasons to believe in its potential.

First of all, its performance has been excellent. To illustrate, in the first quarter of this year, the fund not only beat its benchmark once again but also posted a remarkable 13% gain, continuing the strong performance seen last year when it returned an exceptional 41.93%.

Moreover, the fund is committed to making a positive impact on the planet. It does not invest in fossil fuel companies, aligning perfectly with our mission to avoid investments that contribute to the climate crisis. This commitment is underscored by its performance on investyourvalues.org, where the fund earns all A’s and B’s on its report card—a remarkable achievement that’s quite difficult to attain considering the “subjects” range from deforestation to gender equality.

The fund benefits from the leadership of co-managers Andrew Choi and Shivani Vohra. Both are young and highly educated, with Andrew holding degrees from Princeton and Harvard Business School, and Shivani from Yale and (again) Harvard Business School. Their combined expertise and innovative approach are key drivers of the fund’s success.

Behind the fund is Parnassus, a company with a venerable legacy in sustainable investing. Founded in 1984 by Jerome Dodson, a pioneer in fossil-free funds, Parnassus has maintained a stellar reputation for both its investment acumen and its commitment to environmental stewardship. (It’s one of only 8% of firms to earn the highest level of ESG commitment from Morningstar.) Under Dodson’s guidance, the firm consistently outperformed the S&P, a tradition of excellence that continues to this day.

For more insights and a detailed review of the fund’s performance, I encourage you to read the latest quarterly commentary.

As always, we are here to help guide you through the nuances of sustainable investing and ensure your investments align with both your financial goals and your values.

Warm regards,

Joe