Affiliated Managers Group, Inc. (NYSE: AMG), a leading partner to
independent active investment management firms globally, today
announced the completion of its partnership with Parnassus
Investments (“Parnassus”).
With approximately $49 billion under management as of September
30, 2021, Parnassus has been a pioneer in active responsible
investing for more than 35 years, focused on investing in companies
that generate returns and also have a positive impact on society.
Founded in San Francisco in 1984, the firm integrates deep
fundamental and environmental, social, and governance (ESG)
research into its collaborative, high-conviction, low turnover
investment process, and is today the largest pure-play ESG mutual
fund company in the U.S.1 With more than 95% of its mutual fund AUM
in strategies with a Morningstar RatingTM of 4 or 5 stars,2 a
Morningstar Analyst RatingTM of Gold for its Core Equity Fund, and
each of its equity funds maintaining top sustainability ratings,
Parnassus intends to provide investors with attractive long-term,
risk-adjusted returns by investing in high-quality businesses at
reasonable prices.
The terms of the transaction were not disclosed. Benjamin E.
Allen, Chief Executive Officer of Parnassus, and Todd Ahlsten,
Chief Investment Officer of Parnassus, have entered into long-term
employment agreements with the firm.
About AMGAMG is a leading partner to
independent active investment management firms globally. AMG’s
strategy is to generate long-term value by investing in a diverse
array of high-quality independent partner-owned firms, through a
proven partnership approach, and allocating resources across AMG’s
unique opportunity set to the areas of highest growth and return.
AMG’s innovative partnership approach enables each Affiliate’s
management team to own significant equity in their firm while
maintaining operational and investment autonomy. In addition, AMG
offers its Affiliates growth capital, global distribution, and
other strategic value-added capabilities, which enhance the
long-term growth of these independent businesses, and enable them
to align equity incentives across generations of principals to
build enduring franchises. As of June 30, 2021, AMG’s aggregate
assets under management were approximately $756 billion across a
broad range of return-oriented strategies. For more information,
please visit the Company’s website at www.amg.com
About Parnassus InvestmentsFounded in 1984,
Parnassus Investments is a pioneer in socially responsible
investing. The firm invests responsibly to build wealth for its
clients by selecting businesses that the investment team believes
have increasingly relevant products or services, sustainable
competitive advantages and quality management teams for their high
conviction portfolios. Every investment must meet rigorous
fundamental and ESG criteria. More information is available at
parnassus.comCertain matters discussed in this press release may
constitute forward-looking statements within the meaning of the
federal securities laws, and could be impacted by a number of
factors, including those described under the section entitled “Risk
Factors” in AMG’s most recent Annual Report on Form 10-K, as such
factors may be updated from time to time in the Company’s periodic
filings with the SEC, which are accessible on the SEC's website at
www.sec.gov. AMG undertakes no obligation to publicly update or
review any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as required
by applicable law. From time to time, AMG may use its website as a
distribution channel of material Company information. AMG routinely
posts financial and other important information regarding the
Company in the Investor Relations section of its website at
www.amg.com and encourages investors to consult that section
regularly.
The Morningstar RatingTM
for funds, or “star rating,” is calculated for
managed products (including mutual funds, variable annuity and
variable life subaccounts, exchange-traded funds, closed-end funds,
and separate accounts) with at least a three-year history.
Exchange-traded funds and open-ended mutual funds are considered a
single population for comparative purposes. It is calculated based
on a Morningstar Risk-Adjusted Return measure that accounts for
variation in a managed product’s monthly excess performance,
placing more emphasis on downward variations and rewarding
consistent performance. The top 10% of products in each product
category receive 5 stars, the next 22.5% receive 4 stars, the next
35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom
10% receive 1 star. The Overall Morningstar Rating for a managed
product is derived from a weighted average of the performance
figures associated with its three-, five-, and 10-year (if
applicable) Morningstar Rating metrics. The weights are: 100%
three-year rating for 36-59 months of total returns, 60% five-year
rating/40% three-year rating for 60-119 months of total returns,
and 50% 10-year rating/30% five-year rating/20% three-year rating
for 120 or more months of total returns. While the 10-year overall
star rating formula seems to give the most weight to the 10-year
period, the most recent three-year period actually has the greatest
impact because it is included in all three rating periods. As of
08/31/21, the Parnassus Core Equity Fund – Investor Share was rated
against the following numbers of Large Blend funds over the
following time periods: 1,254 funds in the last three years, 1,094
funds in the last five years and 811 funds in the last 10 years.
The Fund received a Morningstar Rating of 5, 5 and 5 stars for the
3-, 5- and 10-year periods, respectively. The Parnassus Mid Cap
Fund – Investor Share was rated against the following numbers of
Mid-Cap Blend funds over the following time periods: 360 funds in
the last three years, 301 funds in the last five years and 205
funds in the last 10 years. The Fund received a Morningstar Rating
of 4, 4 and 5 stars for the 3-, 5- and 10-year periods,
respectively. The Parnassus Endeavor Fund – Investor Share was
rated against the following numbers of Large Value funds over the
following time periods: 1,148 funds in the last three years, 1,019
funds in the last five years and 753 funds in the last 10 years.
The Fund received a Morningstar Rating of 5, 5 and 5 stars for the
3-, 5- and 10-year periods, respectively. Past performance is no
guarantee of future results. Morningstar Rating is for the Investor
share class only; other classes may have different performance
characteristics.
The Morningstar®
Sustainability Rating is a measure of how well the
portfolio holdings are managing their ESG Risk relative to the
portfolio’s Global Category peer group. The Morningstar Historical
Sustainability Score is a weighted average of the trailing 12
months of Morningstar Portfolio Sustainability Scores. More-recent
portfolios are weighted more heavily than older portfolios. Based
on their Morningstar Historical Sustainability Score, funds are
assigned absolute category and percent ranks within their
Morningstar Global Categories. Higher ratings are better and
indicate that a fund has, on average, more of its assets invested
in companies that have lower ESG risk as characterized by
Sustainalytics. The Morningstar Sustainability Rating is depicted
by globe icons where High equals 5 globes and Low equals 1 globe.
Morningstar updates its Sustainability Ratings monthly and uses
Sustainalytics’ ESG scores from the same month as the portfolio
as-of date. Visit
http://corporate1.morningstar.com/SustainableInvesting/ for more
detailed information about the methodology and calculation
frequency. As of 07/31/21, the Parnassus Core Equity Fund –
Investor Share received a Morningstar Sustainability Rating of High
out of US Equity Large Cap Blend funds based on 100% of AUM. As of
7/31/21, the Parnassus Mid Cap Fund – Investor Share received a
Morningstar Sustainability Rating of High out of US Equity Mid Cap
funds based on 100% of AUM. As of 7/31/21, the Parnassus Endeavor
Fund – Investor Share received a Morningstar Sustainability Rating
of High out of US Equity Large Cap Blend funds based on 97.78% of
AUM. As of 7/31/21, the Parnassus Mid Cap Growth Fund – Investor
Share received a Morningstar Sustainability Rating of High out of
US Equity Mid Cap funds based on 95.08% of AUM. Sustainalytics
provides company-level analysis used in the calculation of
Morningstar’s Sustainability Score. Visit http://
corporate1.morningstar.com/SustainableInvesting for more detailed
information on the methodology and calculation frequency.
The Morningstar Analyst
RatingTM is not a credit or risk
rating. It is a subjective evaluation performed by Morningstar’s
manager research group, which consists of various Morningstar, Inc.
subsidiaries (“Manager Research Group”). In the United States, that
subsidiary is Morningstar Research Services LLC, which is
registered with and governed by the U.S. Securities and Exchange
Commission. The Manager Research Group evaluates funds based on
five key pillars, which are process, performance, people, parent,
and price. The Manager Research Group uses this five-pillar
evaluation to determine how they believe funds are likely to
perform relative to a benchmark, or in the case of exchange-traded
funds and index mutual funds, a relevant peer group, over the long
term on a risk-adjusted basis. They consider quantitative and
qualitative factors in their research, and the weight of each
pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze,
Neutral, and Negative. A Morningstar Analyst Rating of Gold,
Silver, or Bronze reflects the Manager Research Group’s conviction
in a fund’s prospects for outperformance. Analyst Ratings
ultimately reflect the Manager Research Group’s overall assessment,
are overseen by an Analyst Rating Committee, and are continuously
monitored and reevaluated at least every 14 months. For more
detailed information about Morningstar’s Analyst Rating, including
its methodology, please go to
global.morningstar.com/managerdisclosures/.
The Morningstar Analyst Rating (i) should not be used as the
sole basis in evaluating a fund, (ii) involves unknown risks and
uncertainties which may cause Analyst expectations not to occur or
to differ significantly from what they expected, and (iii) should
not be considered an offer or solicitation to buy or sell the
fund.
The Morningstar Analyst Rating should not be used as the
sole basis in evaluating a mutual fund. Morningstar Analyst Ratings
are based on Morningstar’s current expectations about future
events; therefore, in no way does Morningstar represent ratings as
a guarantee, nor should they be viewed by an investor as such.
Morningstar Analyst Ratings involve unknown risks and uncertainties
which may cause Morningstar’s expectations not to occur or to
differ significantly from what we expected.
©2021 Morningstar, Inc. All Rights Reserved. The information
herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses
arising from any use of this information. Past performance is no
guarantee of future results.
Mutual fund investing involves risk, and loss of principal is
possible.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE GUIDELINES: The Fund
evaluates financially material ESG factors as part of the
investment decision-making process, considering a range of impacts
they may have on future revenues, expenses, assets, liabilities,
and overall risk. The Fund also utilizes active ownership to
encourage more sustainable business policies and practices and
greater ESG transparency. Active ownership strategies include proxy
voting, dialogue with company management and sponsorship of
shareholder resolutions, and public policy advocacy. There is no
guarantee that the ESG strategy will be successful.
Before investing, an investor should carefully consider
the investment objectives, risks, charges, and expenses of a fund
and should carefully read the prospectus or summary prospectus,
which contain this and other information. A prospectus or summary
prospectus can be obtained on the website, www.parnassus.com, or by
calling (800) 999-3505.
The Parnassus Funds are distributed by Parnassus Funds
Distributor, LLC.
1 Per Morningstar, as of August 31, 2021. 2 Per Morningstar, as
of August 31, 2021.
Investor Relations:Anjali Aggarwal
Media Relations:
Ann Imes
+1 (617) 747-3300ir@amg.compr@amg.com
Parnassus Media Relations:Joe Sinha(415)
778-2678joe.sinha@parnassus.com
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