The Parnassus Fixed Income Fund invests in U.S. Treasuries. Parnassus Investments recognizes that there are some social investors who question investing in U.S. Treasuries due to the Government's funding of the Department of Defense. However, the Parnassus screens focus on excluding companies that generate significant revenue from the manufacture of alcohol, tobacco or weapons, companies that have direct gambling operations, companies that generate electricity from nuclear power facilities, and companies with business involvement in Sudan. Since the U.S. Government does not fit those criteria, U.S. Treasuries are available for inclusion in the Parnassus Fixed Income Fund as they do not violate the firm's responsible investment policy.
The Fund may also invest in bonds issued by Supranational Organizations, which are subject to the same Responsible Investment Exclusionary Screens and Qualitative Assessments as the Advisor's other U.S. funds.